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Procedia CIRP 63 (2017) 113 – 118
* Chris H. Riedel, Ph.D. Tel.: 248-204-2570; fax: 248-204-2576. E-mail address: criedel@ltu.edu
Abstract
The paper industry is facing continuous decline due to a combination of input costs and competition. In addition to these concerns of input costs
and competition, product quality has been an ongoing problem as customer complaints have been translating to cumulative increases to
operational costs as observed by Evergreen Packaging. In a survey conducted by Evergreen Packaging in the year 2014 of customer complaints,
these product quality issues materialized as an area of concern. As such, Evergreen Packaging felt the need to implement an improvement
program with the goal of improving quality to increase customer satisfaction. The goal of the improvement program was to reduce the
operating costs of the company through the reduction of the top five complaints, and the top five dollars lost due to complaints, in each facility
by 90%. The improvement program followed the principles of Manufacturing Excellence, with the company working with external consultants
who are experts in Manufacturing Excellence. Statistical tests were then conducted to determine the improvements of the improvement
program following a set period of time after its implementation
© 2017 The Authors. Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license
© 2017 The Authors. Published by Elsevier B.V.
(http://creativecommons.org/licenses/by-nc-nd/4.0/).
Peer-review under responsibility of the scientific committee of The 50th CIRP Conference on Manufacturing Systems.
Peer-review under responsibility of the scientific committee of The 50th CIRP Conference on Manufacturing Systems
Keywords: Manufacturing Excellence; Lean; Six Sigma
2212-8271 © 2017 The Authors. Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license
(http://creativecommons.org/licenses/by-nc-nd/4.0/).
Peer-review under responsibility of the scientific committee of The 50th CIRP Conference on Manufacturing Systems
doi:10.1016/j.procir.2017.03.104
114 Shawn Castro and Chris Riedel / Procedia CIRP 63 (2017) 113 – 118
packer / stretch wrap six months, and data was gathered from these six months and
was determined to be post-test data.
Table 2
4. Operationalization of Variables
Athens facility complaints of interest
Top five number of Top five dollars lost due to Top five number of complaints – From the data from the
complaints complaints twelve months prior to the Manufacturing Excellence
Side seam defect Blocking / saw toothing implementation, the mean value of the number of complaints
Poor print Side seam defect for each complaint category (i.e., side seam defect, poor print,
Carton damage - sealer / Carton damage - sealer / bias, etc.) for the twelve months was computed. The
packer / stretch wrap packer / stretch wrap categories with the top five mean values and was considered
Transit damage / truck seal Bowed carton / nip lean / as the top five categories for number of complaints. And the
broken in transit fluff variable top five number of complaints with the monthly total
Blocking / saw toothing Incorrect copy / product of the top five complaints. This was different for each factory
shipped / product ID as the complaints did vary.
Top five dollars lost from complaints - From the data from the
Table 3 twelve months prior to the Manufacturing Excellence
implementation, the mean value for the dollars lost from
Olmstead facility complaints of interest complaint from each complaint category (i.e., side seam
Top five number of Top five dollars lost due to defect, poor print, bias, etc.) for the twelve months was
complaints complaints computed. The categories with the top five mean dollar
values were considered as the top five categories for dollars
Incorrect copy / product Incorrect copy / product
lost from complaints. And the variable top five dollars lost
shipped / product ID shipped / product ID
from complaints were the monthly total of the top five dollars
Transit damage / truck seal Transit damage / truck seal
lost from complaints. This was different for each factory as
broken in transit broken in transit
the complaints and dollar values lost vary for each category.
Side seam defect Blocking / saw toothing
Poor print Side seam defect
Carton damage - sealer / Short bottoms 5. Data Analysis Plan
packer / stretch wrap
Data will be encoded into a spread sheet program for
computation and initial analysis as detailed in the
operationalization of variables section. After which, the
3. Manufacturing Excellence Intervention computed monthly data will be exported into the SPSS v22.0
software for analysis.[3] Data for the three factories may be
To implement Manufacturing Excellence, multiple teams encoded on a single spread sheet, but will be analyzed
were developed at each facility. Each of the selected facilities independent of each other. Data will be summarized using
were assigned to provide the data showing the top customer descriptive statistics, with continuous variables to be analyzes
complaints with regards to the number of complaints and using measures of central tendency such as the mean, standard
dollar amount of complaints. Small teams were established deviation, and range.
consisting of the following members: a.) a process expert, b.) To address the first hypothesis, unpaired samples t-test
a member new to the process, c.) a member from maintenance, were conducted to compare the pre-test and post-test data on
d.) a member of management, and e.) a member that is new to the top five numbers of complaints. The unique identifiers
the facility and with seniority status. The small teams also were the months (Month, Year). To test this hypothesis, the
consist of members across several shifts. The diversity allows independent or grouping variable (IV) is the Manufacturing
the group to promote different ways of thinking and allows Excellence intervention (pre-implementation (0), post-
for great idea generation on how to fix the issues. implementation (1)), while the dependent variable (DV)
Each team then receive small team training to be would be the top five number of complaints per month. To
conducted by a consulting company. The teams completed a address the second hypothesis, unpaired samples t-test will be
fish bone diagram, a 5 why diagram, and generated a conducted to compare the pre-test and post-test data on the
corrective action list. Each team meet frequently in order to top five dollars lost from complaints. The unique identifiers
review the progress of corrective actions. Once corrective were the months (Month, Year). To test this hypothesis, the
actions were complete, carton service technicians proactively independent or grouping variable (IV) is the Manufacturing
inspected customers in the field to investigate whether Excellence intervention (pre-implementation (0), post-
corrective actions would be needed. The results of the field implementation (1)), while the dependent variable (DV) were
inspections were then reported back to the small groups. A the top five dollars lost from complaints per month. These
review of the small groups’ progress was made by a steering tests would be conducted for the data from each factory
committee, of which the steering committee consisted of the independently. All statistical tests were considered a
consultant, the director of manufacturing, the division significance level of .05. If p < .05, there will be sufficient
manufacturing engineer, the division quality manager, and the evidence to reject a null hypothesis.
carton technical service manager. The review of results and The formula for the computation of the t statistic for the
group progress were performed monthly with the steering independent samples t-test, and the degrees of freedom (df) to
committee. This process continues continued throughout the find the p value of the test are presented below:
116 Shawn Castro and Chris Riedel / Procedia CIRP 63 (2017) 113 – 118
implementation group, the average top 5 number of complaints at Kalamazoo, Athens, and Olmstead, at pre and
complaints was 37.2 (SD = 19.0), and 2.3 (SD = 2.3) within post, where a decline is seen for each location.
the post-implementation group. When observing dollars lost,
the average was $6,236.30 (SD = 18667.4). Within the pre- Table 5
implementation group, the average dollars lost was
$36,803.80 (SD = 47895.1), and $2,415.40 (SD = 4807.1)
within the post-implementation group. At Olmstead, the T-test Results for Top 5
average number of complaints, when only observing the top Complaints at Each Company
five complaints, was 6.1 (SD = 11.6). Within the pre- df p-
implementation group, the average top 5 number of t value
complaints was 36.6 (SD = 10.6), and 2.3 (SD = 2.3) within Kalamazoo 4.11 4.01 0.015
the post-implementation group. When observing dollars lost, Athens 3.26 4.01 0.031
the average was $6,236.30 (SD = 18667.4). Within the pre- 7.19 4.05 0.002
implementation group, the average dollars lost was Olmstead
$36,803.80 (SD = 47895.1), and $2,415.40 (SD = 4807.1)
within the post-implementation group. Overall, at each
company, the average values for each outcome.
Table 4
10. References
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in manufacturing companies: Motivating factors and challenges,
Figure 2. Summary of Pre and Post Top 5 Dollars Lost for
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Each Facility http://www.intechopen.com/books/applications-and-experiences-of-
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For Hypothesis 3, results of the t-tests showed that there companies-motivating-factors-and-challenges
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8. Summary