FIB 6 Sigma Presentation(Rev B)

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FIB LEAN SIX SIGMA PROJECT PROPOSAL : 

FIB LEAN SIX SIGMA PROJECT PROPOSAL Project Charter: Senior Management Has Suggested To Review Ongoing Delivery Issues With FIB Power Supply Product Line (S). Team Identified The Top Runners With Poor O.T. D. The Models Are: 405808-002, 405808-004, Validation: Review Of 12 Month Data Has Revealed Inconsistent Delivery Metrics Which Will Be Addressed By A Cross Functional Team. Reviewing Customer Requirements Has Revealed Customers Of These Products Require Reliable Delivery To Promised Dates. Team Will Review V.O.B. (Voice Of The Business) To Insure It Can Be Aligned To Meet The Customers Requirements. Team Will Review If Improving Delivery And Quality Will Improve Profit Margins. Currently We Are Not Meeting Labor Standards. 1

FIB LEAN SIX SIGMA PROJECT PROPOSAL : 

FIB LEAN SIX SIGMA PROJECT PROPOSAL DEFINE: Cycle Time And Internal Lead Times Are Greater Than Current Standard And Require Review For Improvements. Customers Require Reliable On Time Delivery And Company Requires Projected Profit Margins On Product. The Goal Of The Project Is To Employ Lean Six Sigma Methods To Evaluate Current Process Capabilities And Issues Creating Late Deliveries And Develop Strategies To Correct And Improve Delivery, Labor Standards And Process Improvements To Reduce Waste And Variation. Team Selected Is a Cross Section Of Test , Materials, Machine Shop, Operations Management, Quality and Accounting. Team Members: Current Green Belts, Rosalie Casarona, Jacob Kim, Brian Wohlgemuth. Customer Critical To Quality Requirements: Delivery Of Reliable Power Supplies That Performs To Specifications, On Time And Defect Free. Evaluate Accounting’s Perspective On Opportunities To Improve Overall Profitability Of Product . Cost Breakdown Formulas Labor Cost Breakdown. Pie Chart Of Expenses Plus Overhead Of Product. Guidelines For MFG. On Labor Cost And Where They May Be Inhibiting Profitability. Explanation Of Terms And Conditions To Six Sigma Team On Transfer Cost To Spellman U.K. Evaluation Of B.O.M. Costs From Materials Group. Long Lead Time Item Issues. Opportunities For Material Cost Reduction. Opportunities To Define MRP Purchased Items On This Unit For Kanban With Suppliers. Adjust Unit Lead Time To Coincide With Customer Delivery Requirements. 2

FIB LEAN SIX SIGMA PROJECT PROPOSAL : 

IPO= (INPUT, PROCESS, OUTPUT ) DESCRIBES WHAT GOES INTO A PROCESS AND WHAT COMES OUT OF THE PROCESS, SHOWING INPUTS (SOURCES OF VARIATION) AND OUTPUTS (MEASURES OF PERFORMANCE.) SOP= (STANDARD OPERATING PROCEDURES) SAME AS WORK INSTRUCTIONS SOPs HELPS ELIMINATE VARIATIONS. IPK= (IN PROCESS KANBAN) HELPS BALANCE A LINE BY MAKING PREDETERMINED MATERIAL QTY. AVAILABLE WHERE NEEDED IN A MAIN LEAN LINE OR FEEDER LINE. CPK= ( PROCESS CAPABILITY ACTUAL) A CHART THAT MEASURES THE ACTUAL CAPABILITY OF A PROCESS, TAKING INTO ACCOUNT THE CENTERING OF THE PROCESS. MEAN = AVERAGE OF DATA POINTS TAKEN. ALSO DEFINED AS THE MIDPOINT UNDER NORMAL DISTRIBUTION. STD. DEVIATION= DESCRIBES EXPECTED AMOUNT OF VARIATION IN NORMALLY DISTRIBUTED DATA. BOX PLOT= GRAPH THAT SHOWS WHERE MAJORITY OF DATA POINTS FALL. HISTOGRAM= A GRAPH CHART USED TO EVALUATE THE DISTRIBUTION OF DATA. RUN CHART = GRAPHS DEFINING TRENDS IN DATA OVER TIME. CONTROL CHART= USED TO LOOK AT THE PROCESS STABILITY. USL= UPPER SPEC. LIMITS LSL= LOWER SPEC. LIMITS 3 FIB LEAN SIX SIGMA PROJECT PROPOSAL SIX SIGMA DEFINITIONS

IPO Diagram(Input – Process – Output) : 

IPO Diagram(Input – Process – Output) 4 Rack Assembly Material Documentation Tools Labor OTD Cost Quality Training Efficiency Cycle Time Define FIB LEAN SIX SIGMA PROJECT PROPOSAL

FIB LEAN SIX SIGMA PROJECT PROPOSAL : 

5 FIB LEAN SIX SIGMA PROJECT PROPOSAL Define

FIB LEAN SIX SIGMA PROJECT PROPOSAL : 

FIB LEAN SIX SIGMA PROJECT PROPOSAL Measure: 405808-002 FIB TOP ASSY 07/08 to 08/09 DATA PRIOR TO LEAN/SIX SIGMA 6 TEAM GOAL >85% OTD Customer Spellman U.K. Base line Measurements From SHVQA 52% OT TO W/O DUE DATE ON TIME DATA TO WORK ORDER PRIOR TO LEAN 6 SIGMA

FIB LEAN SIX SIGMA PROJECT PROPOSAL : 

FIB LEAN SIX SIGMA PROJECT PROPOSAL Measure: 406352-001 FLOAT BOX(LOWER LEVEL) 07/08 to 08/09 DATA PRIOR TO LEAN/SIX SIGMA 7 TEAM GOAL >85% OTD Customer Spellman Internal Base line Measurements From SHVQA 4.7% OT TO W/O DUE DATE ON TIME DATA TO WORK ORDER PRIOR TO LEAN 6 SIGMA

FIB LEAN SIX SIGMA PROJECT PROPOSAL : 

FIB LEAN SIX SIGMA PROJECT PROPOSAL Measure: 405883-001 ISO XFMR (Sub Assy) 07/08 to 08/09 DATA PRIOR TO LEAN/SIX SIGMA 8 TEAM GOAL >85% OTD Customer Spellman U.K. Base line Measurements From SHVQA 24% OT TO W/O DUE DATE (Before Six Sigma)

FIB LEAN SIX SIGMA PROJECT PROPOSAL : 

9 FIB LEAN SIX SIGMA PROJECT PROPOSAL Measure MEAN MRP Std 7.07 Hrs CPK= ( PROCESS CAPABILITY ACTUAL) A CHART THAT MEASURES THE ACTUAL CAPABILITY OF A PROCESS, TAKING INTO ACCOUNT THE CENTERING OF THE PROCESS.

FIB LEAN SIX SIGMA PROJECT PROPOSAL : 

10 FIB LEAN SIX SIGMA PROJECT PROPOSAL Measure MEAN MRP Std 1.76 Hrs

FIB LEAN SIX SIGMA PROJECT PROPOSAL : 

11 FIB LEAN SIX SIGMA PROJECT PROPOSAL Measure Mean MRP Std 3.66 Hrs

FIB LEAN SIX SIGMA PROJECT PROPOSAL : 

12 FIB LEAN SIX SIGMA PROJECT PROPOSAL Measure

FIB LEAN SIX SIGMA PROJECT PROPOSAL : 

13 FIB LEAN SIX SIGMA PROJECT PROPOSAL Measure MEAN

FIB LEAN SIX SIGMA PROJECT PROPOSAL : 

14 FIB LEAN SIX SIGMA PROJECT PROPOSAL Measure MEAN

FIB LEAN SIX SIGMA PROJECT PROPOSAL : 

15 FIB LEAN SIX SIGMA PROJECT PROPOSAL Measure 405808-002 (Top Assy )Shipped Qty. And Failure Rate (Before Six Sigma Implementation)

CURRENT STATE VSMAP ISO XFMR : 

CURRENT STATE VSMAP ISO XFMR 16 FIB LEAN SIX SIGMA PROJECT PROPOSAL Measure CYCLE TIME FOR FIB XFMR IS @ 86 HRS. PRIOR To LEAN/SIX SIGMA

CURRENT STATE VSMAP MAIN ASSY : 

CURRENT STATE VSMAP MAIN ASSY 17 FIB LEAN SIX SIGMA PROJECT PROPOSAL Measure CYCLE TIME FOR FIB MAIN ASSY IS @ 60.6 HRS. PRIOR To LEAN/SIX SIGMA

CURRENT STATE VSMAP FLOAT BOX : 

CURRENT STATE VSMAP FLOAT BOX 18 FIB LEAN SIX SIGMA PROJECT PROPOSAL Measure CYCLE TIME FOR FIB FLOAT BOX IS @ 52 HRS. PRIOR To LEAN/SIX SIGMA

FIB LEAN SIX SIGMA PROJECT PROPOSAL : 

FIB LEAN SIX SIGMA PROJECT PROPOSAL Findings During FIB Value Stream Process. KIT Is Released And After Aprox. 1hr Of Verifying All Of Material For Float Box, Job Is Halted Due To 460029-001 Control Board Shortage. Point of use Kanban material established and working well. Test Failures Take Part In The Delay Of Delivery Of 460029-001 Boards. Propose 460028-003 to be transitioned to Mexico (-999 is in Mex.) Transitioned Propose 460030-002 to be transitioned to Mexico (-999 is in Mex.) Transitioned Propose 460031-002 to be transitioned to Mexico (-999 is in Mex.) Transitioned In Potting Area One Observation Revealed That PCB Department Assembles Sheet Metal Covers To Board, Only To Be Removed By Potting To Perform Plasma Etch Process To Metal Surfaces And Board. Metal is provided to potting unassembled to facilitate the etch process and lower labor time 19 Analyze

FIB LEAN SIX SIGMA PROJECT PROPOSAL : 

Material Delivery Prior To Lean Six Sigma 20 FIB LEAN SIX SIGMA PROJECT PROPOSAL Analyze

FIB LEAN SIX SIGMA PROJECT PROPOSAL : 

The purchasing department was tasked with achieving a cost reduction on the above models. I ran and combined the 2 BOM’s above using an annual qty of 12. Sorted the spread sheet by total dollars from highest to lowest and used the 80/20 analysis.   It turns out that all of the items in the top 20 % of the BOM were addressed before, and in some cases twice before. They were first reviewed by John Grillo in late 2008 / early 09. We were successful on many of those items.   We then did an ABC Analysis in April / May of 2009 for all active items. They were divided by A, B and C items, “ A” being the high runners and high dollars. We used the 80 /20 rule on all the A items. We were successful on some of those items as well.   Almost all of the items on the 2 subject models were part of the ABC analysis. All of the items in the 2 subject Models were again reviewed with no success this time…….other than the possibility of a power supply manufactured by Astrodyne. They still owe me an answer. I believe that we have gotten all that we can from the suppliers on these items. 21 FIB LEAN SIX SIGMA PROJECT PROPOSAL Analyze COST REDUCTION INVESTIGATION FOR 405808-002 & -004 SUBMITTED BY PURCHASING

FIB LEAN SIX SIGMA PROJECT PROPOSAL : 

Part number 105418-014 (Power Supply Single O/P24V 6.3A 150W) is being reduced from $60.75 to $59.75 on future orders. The EAU is ~1225pcs., yielding $1225.00 in savings. Glovia has been updated. (12-01-09) 22 COST REDUCTION INVESTIGATION FOLLOW UP FOR 405808-002 & -004 SUBMITTED BY PURCHASING Analyze FIB LEAN SIX SIGMA PROJECT PROPOSAL

FIB LEAN SIX SIGMA PROJECT PROPOSAL : 

23 FIB LEAN SIX SIGMA PROJECT PROPOSAL Analyze # OF FAILURES Failure Mode 405808-002 (Top Assy) From Sep-08 To Nov-09 (Before Six Sigma Implementation)

FIB LEAN SIX SIGMA PROJECT PROPOSAL : 

24 FIB LEAN SIX SIGMA PROJECT PROPOSAL ONE CART WILL CONTROL MATERIAL FOR 6 UNITS ELIMINATING THE CURRENT 3 CART DELIVERY SYSTEM CONTAINERS WILL HOUSE MULTIPLE COMPONENTS IN BUILD SEQUENCE Improve

FIB LEAN SIX SIGMA PROJECT PROPOSAL : 

25 FIB LEAN SIX SIGMA PROJECT PROPOSAL FIB-001 INITIAL START UP PICTURES MAIN ASSY IPK SUB ASSY IPK FIB-001 INITIAL START UP AREA 405883 -001 ISO XFMR ASSY Separate Cart FIB-001 INITIAL SET UP FIB-001 POU MATERIAL SET UP Improve

Slide 26: 

26 Improve FIB LEAN SIX SIGMA PROJECT PROPOSAL After Six Sigma

Slide 27: 

27 Failure Mode 405808-002 (Top Assy) From Sep,2008 To current, Lean Data From Nov 18, 2009 ( Before And After Lean Six Sigma Implementation) FIB LEAN SIX SIGMA PROJECT PROPOSAL Improve

FIB LEAN SIX SIGMA PROJECT PROPOSAL : 

28 405808-002 FIB (TOP ASSY) 11/17/2009 to 2/28/2010 O.T.D.DATA AFTER SIX SIGMA LEAN TEAM GOAL >85% OTD 77% OT TO W/O DUE DATE ( After Six Sigma) Customer Spellman U.K. IMPROVE Base line Measurements From SHVQA FIB LEAN SIX SIGMA PROJECT PROPOSAL 52% OT TO W/O DUE DATE (Before Six Sigma) 100% OT TO W/O DUE DATE In FEBRUARY Note: Dec. And Jan. Show Late Orders To The Work Order Due Date. This Is Due To Production Opening Up Larger Work Orders Than 2pc.

FUTURE STATE VSMAP ISO XFMR : 

FUTURE STATE VSMAP ISO XFMR 29 FIB LEAN SIX SIGMA PROJECT PROPOSAL Improve CYCLE TIME BEFORE 86 HRS CYCLE TIME FOR FIB XFMR IS @ 26 HRS. AFTER LEAN/SIX SIGMA

FIB LEAN SIX SIGMA PROJECT PROPOSAL : 

30 FIB LEAN SIX SIGMA PROJECT PROPOSAL Improve 50% of Data Points Fall in this area Range Of All Data Points

FIB LEAN SIX SIGMA PROJECT PROPOSAL : 

31 FIB LEAN SIX SIGMA PROJECT PROPOSAL Improve

FIB LEAN SIX SIGMA PROJECT PROPOSAL : 

32 FIB LEAN SIX SIGMA PROJECT PROPOSAL Improve Standard Build Time 7.07 hrs Standard MRP Build Time 7.07 hrs

FIB LEAN SIX SIGMA PROJECT PROPOSAL : 

33 FIB LEAN SIX SIGMA PROJECT PROPOSAL Improve Steady Improvement Is Observed In The FIB-001 Cell. This Data Has Been Verified With Accounting. 5% To 6% more Labor Improvement Are Anticipated, by Maintaining Inventory Supply Chain.

FIB LEAN SIX SIGMA PROJECT PROPOSAL : 

34 FIB LEAN SIX SIGMA PROJECT PROPOSAL Improve

FIB LEAN SIX SIGMA PROJECT PROPOSAL : 

35 FIB LEAN SIX SIGMA PROJECT PROPOSAL Improve

FIB LEAN SIX SIGMA PROJECT PROPOSAL : 

36 FIB LEAN SIX SIGMA PROJECT PROPOSAL Improve The Average Labor Rate for The Pie Chart’s LABOR COST Is Calculated @ $18/hour. UNBURDEN

FIB LEAN SIX SIGMA PROJECT PROPOSAL : 

Process Monitoring Sequence of Event Sheets Provided To: Ensure product is built the same way every time Insert inspection into the assembly process Notify operators what problems have occurred in the past 37 FIB LEAN SIX SIGMA PROJECT PROPOSAL Control

FIB LEAN SIX SIGMA PROJECT PROPOSAL : 

38 FIB LEAN SIX SIGMA PROJECT PROPOSAL Control

FIB LEAN SIX SIGMA PROJECT PROPOSAL : 

Process Monitoring Flexibility Matrix Created To: Track flexibility of the DFT line Track flexibility of the operators Notify management when and where training is needed 39 FIB LEAN SIX SIGMA PROJECT PROPOSAL Control

FIB LEAN SIX SIGMA PROJECT PROPOSAL : 

40 FIB LEAN SIX SIGMA PROJECT PROPOSAL Control

FIB LEAN SIX SIGMA PROJECT PROPOSAL : 

41 FIB LEAN SIX SIGMA PROJECT PROPOSAL Control

FIB LEAN SIX SIGMA PROJECT PROPOSAL : 

The team did a great job reducing defects in the cell. The next step in the reduction of inspection would be to follow the qualified operator process. The QO committee will review the cell operator’s performance and training. If they meet the requirements we can begin to wean the cell off of inspection. 42 FIB LEAN SIX SIGMA PROJECT PROPOSAL Control Quality Feedback April 02, 2010

FIB LEAN SIX SIGMA PROJECT PROPOSAL : 

Process Monitoring Lean Dashboard Used To Monitor: Efficiency To Labor Std Cycle Time To MRP Std 43 FIB LEAN SIX SIGMA PROJECT PROPOSAL Control

FIB LEAN SIX SIGMA PROJECT PROPOSAL : 

Process Monitoring Monthly Dashboard Are Displayed With: OTD (by work orders) MPR / DMR Rate (Quality) 44 FIB LEAN SIX SIGMA PROJECT PROPOSAL Control NOTE: Dec. And Jan. Show Late Orders To The Work Order Due Dates. This Is Due To Production Opening Up Larger Than 2 Pc W/O’s Units Are On Time To Customer Requirements Based On S.O. Requirements. Production Has Been Instructed To Maintain A Maximum Qty Of 2 Units Per W/O

FIB LEAN SIX SIGMA PROJECT PROPOSAL : 

45 FIB LEAN SIX SIGMA PROJECT PROPOSAL LESSONS LEARNED IN THE IMPLEMENTATION: Value Streams Reveal The Unknown And Identify Opportunities For Improvement. We Don’t Need 2 weeks To Build A Power Supply When We Orient Our Plans As A Team. Team Work Overcomes Most Problems Effective Meetings Keep Team Focused And On Track Lean Cell Lessons Learned  Improve OTD (EX. 405883-001 is 100% Since Nov17th to Current, Establish Safety Stock for critical items used on PC board 460029-001 this has improved availability of extractor) Requirement Of 6 per week On Hand of 460029-001 Had Not Been Accomplished Prior To Lean Six Sigma, ongoing effort to maintain. Reduced Cycle Time: Queue Time (High Visibility In The In-Line Process). Inventory Handling Time (EX. Kanban system) Traveling Distance (EX. Unit Travels Shorter Distance During In-Line Process) Able To Meet Customer Request With Immediate Response. (EX. Established Kanban System For Critical Parts Through Out Product Supplier- Chain) Material Is Available In Kanban System Enables Us To Level Load To Meet Customer Due-Date And Quick Turn-Around For Any Repairs When Needed. Cell leader Integrated engineering jobs to visual schedule. Effective Communications Is Key To Team Knowledge And Understanding Of Goal And Objectives. Still struggling to keep Oh. material in IPKs or POU carts due to shortages, actions to improve is ongoing.

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