Premium Transport

Tollgate Review
D M A I C
Premium Reduction &
Delivery Improvement
Champion Sponsor
Tollgate Review
D M A I C
Project Title: Premium Reduction
Contract
Department Customer (internal/external):
Duration internal: PC&L
Sponsor:
CTQ addressed:
Eric Crump PC&L Manager - Project Leader
Marne Cario PC&L General Supervisor
Business Driver(s) Impacted:
Project Scope:
Tools Used
Define
actual
`
Measure
actual
Analyze
actual
Improve
actual
Control
actual
Control and Response Plan
Total Months: 6 August 2004 - February 2005
Contract / SIPOC / Graphs
Preliminary Problem Statement:
Aug
Rachel Heidenreich
PC&L
Premium / IPM (Internal & External)
Premium Cost Reduction / IPM Internal And
External Delivery Improvement
Donnell Conner
Champion: Marybeth Cunningham
Team Members
Tool Engineer
MFG Supervisor
Role
Dec
Jim Altier
Tom Catheline
William Katko
John Salerno
Nov
Quality Engineer Green Belt Candidate
Green Belt Re-Certif ication
Function
Manuf acturing Support
Black Belt Candidate
Process Mapping, Cause and Effect Diagram,
Data collection Plan, MSA
DPMO/Capability, Hypothesis Testing/Root
Cause Analysis
Solution generate, Pilot on Department 1108,
Moods Median Test, Test for Equal Variance
Mar Apr
Ken Dillon PC&L Scheduler - Project Leader
Jan Feb
Chris Kushmaul Master Black Belt
Master Black Belt
Shipping Supervisor
Sep Oct
In Scope - Reduction of all Premium from Pt 11
Green Belt Candidate
Green Belt Re-Certif ication
Project Coach
Text: Plant has been experiencing high premium transportation over the past 2 years. 2003 premium was over $220,000 and 2004
premium is over $250,000 thru July. In addition to high premium, Plant 11 has experienced internal and external delivery issues to
several customers. Delivery Performance has created several concerns from the DCS Business Line because of the impact to their final
customers.
The goal of this project is to reduce Premium by 40% and reduce IPM by 45%
Tollgate Review
D M A I C
$
1
8
3
,
4
1
1
$
1
9
,
5
7
1
$
1
1
,
1
8
1
$
5
,
5
8
4
$
1
,
2
2
4
$
7
7
4
$
2
0
0
$
1
0
8
$
1
2
4
$
6
4
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
$180,000
$200,000
Behind
Schedule
Internal
Quality
Supplier
Quality
Trans /
Customs
Deliver
Miss
Late Entry Mislabeled Cust. Req /
Inv. Adj
Req /
Inventory
Adj.
Part Cert.
Delay
Plant Premium 200x Detail
Data was obtained from the Premium Web Site
Tollgate Review
D M A I C
Plant Premium 200x Detail
$
2
2
0
,
0
1
9
$
2
0
,
4
9
2
$
7
,
3
3
8
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5
0
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,
6
1
2
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,
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1
0
$
6
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9
$
3
0
0
$0
$50,000
$100,000
$150,000
$200,000
$250,000
Behind
Schedule
Trans /
Customs
Data
Processing
Engineering Internal
Quality
Deliver Miss Req /
Inventory
Adj.
Tool
Capacity
Tollgate Review
D M A I C
Plant 200x Internal IPM
2
7
0 0
2
3
9
2
,
0
4
7
2
,
5
0
7
2
,
1
6
9
4
,
8
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1
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8
3
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8
9
2
9
,
2
5
2
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
Jan Feb March April May June July Aug Sept Oct Nov Dec YTD
Tollgate Review
D M A I C
Plant 200x Internal IPM
3
,
2
2
5
2
,
2
0
6
5
0
8
7
9
9
2
,
0
8
9
1
,
9
7
6
2
4
3
1
,
5
9
6
0
500
1,000
1,500
2,000
2,500
3,000
3,500
Jan Feb March April May June July YTD
Tollgate Review
D M A I C SIPOC
Process Name: Plant 11 Terminal Manufacturing Process
Process Owner: Plant 11 Premium Reduction Team
Suppliers Inputs Process Outputs
(Providers of the
required resources)
(Resources required by
the process)
(Deliverables from
the process)
Customer Forecast Requirements
Pulls
Orders Parts Shipped on Time INTERNAL
Mexico
PC&L Production Schedules Mississippi
Quality PPAP Good Quality Parts
Tool Release
Press Release
Part Inspection (PPC)
Manufacturing Production Right Quantities
Tool Room Tools
Tool & Die Makers Set - UP
EXTERNAL
Correctly Labeled Lear
Tool Engineer Support Yazaki
PS&G
Maintenance Support Condumex
Change-over
Terminal Store Matrial Handling
Shipping
Develop Store Goal
Suppliers Raw Material
Customers
(Stakeholders who place the requirements on
the outputs)
Customer
Requirements
Forecast
Pulls (Internal)
Orders (External)
Scheduling
Manufacuturing
SHIP
from
OHIO
TERMINALS
Tollgate Review
D M A I C
Plant Premium Reduction &
Measure
Date: 01 / 06 / 0x
Tollgate Review
D M A I C
Cause & Effect Diagram
(Goal Changes)
(Note comment from Red Tags?)
(1 - Group with FTQ?) Should add up to
84
(1 - Group w / Un-forcasted orders / pulls?)
PC&L
Manufacturing Information Systems
Customer/Supplier Eng/Tool Room/Maint. Quality
Why do We have
missed/late
shipments?
(x) Lack - Order Fillers
1
(x) Critical Parts List
(x) Terminal Store
Picks
(x) Partial Reels
(x) Lack - Raw
Material
(x) Mtl Movement
Delays
(x) Labor
Allocation/Job
(x) Operator
Training
(x) Care Insp.
Coverage
(x) Line Insp.
Coverage
(x) Absenteeism
(x) Uptime
(x) Lack - Real
Time Info
(x) Shipping
Patterns 1
3
2
(x) Scrap
(x) Press
Availability 4
2
1
1
7
(x) Inventory
Visibility
(x) Real Time Data
(x) Label
4
1
(x) Goal
Changes
(x)
Defective
Raw
(x) Pull Variations
(x) Increased Pulls
(x) Unforseen
Orders/Pulls
5
2
6
Changeover
Time 6
Issues Running 2
Precious Metal
Labor
Resourcing/Job Ass
6
Setup Times
3 Tool
Availability
6 Tool Capability
Unplanned 3
Mtce. Downtime
Make vs Buy
Low Vol. & 4
Obsolete Parts
Spare Tooling
Parts 4
Spare Equip.
Parts
Mtce. Response
Time 6
(x) PPAP
(x) Red Tags
(x) FTQ
3
1
Tollgate Review
D M A I C Data Collection Plan
Time Period (Y) (X1) (X2) (X3) (X4) (X5)
Joe Bonneau John Salerno Joe Bonneau Ken Dillion Ken Dillion John Salerno
Name of Factor: Operator (1) (2) Trial Part Number
Time to fill back
order
Uptime Set up / Change
Over
Tool
Availability
Press Availability Spare Tooling Part
Availability
Operational Definition
The uptime of the
press while the back
order part number is
in the machine
Time to convert
good part to good
part
Sitting on
ready rack
Is an acceptable
press available to
the run part?
The time it takes to
get spare toolign
when parts are not
available
Type of Data: Continuous Continuous Discrete Dicrete Continuous
Specific to:
P/N's
Measure
Data Collection Plan
Tollgate Review
D M A I C
Time Period (Y) (X6) (X7) (X8) (X9) (X10)
Joe Bonneau Donnell Conner John Salerno Marne Cario Marne Cario Bill Katko
Name of Factor:
Operator (1)
(2)
Trial Part Number
Time to fill back
order
Maintenance
Response Time
Tool & Die Response
Time
Unforeseen
Orders / Pulls
Low Volume Red Tag
Operational Definition
Time from
when a call is
placed to the
time the work
is complete
The difference in time
between when a tool
has failed & marked on
the board & when the
machine is running
Difference
between the
forecast & the
actual pull
Is this part
number low
Volume?
Is this part red
tag or care?
Type of Data: Continuous Continuous Continuous Discrete Discrete
Specific to:
Rounded to the hour
checked
Build area
1118
First time?
Quality?
P/N's
Measure
Tollgate Review
D M A I C Gage R & R Study
Repeatability
Within Appraisers
Appraiser #
Inspected
# Matched % Percent 95.0% CT
21 30 30 100 (90.5 , 100)
2 30 29 96.7 (82.8 , 99.9)
# Inspected # Matched % Percent 95.0% CT
30 29 96.7 (82.8 , 99.9)
Appraiser agrees with him / herself trials
Reproducibility
Between Appraisers
All appraisers assessments agree with each other
Tollgate Review
D M A I C
Plant Premium Reduction &
Analyze
Date: 03 / 24 / xx
Tollgate Review
D M A I C
1 4 7 10 13
95% Confidence Interval for Mu
1.5 2.5 3.5
95% Confidence Interval for Median
Variable: (Y)
A-Squared:
P-Value:
Mean
StDev
Variance
Skewness
Kurtosis
N
Minimum
1st Quartile
Median
3rd Quartile
Maximum
2.6522
2.5589
1.6000
5.269
0.000
3.18609
2.89036
8.35419
1.32074
1.59636
115
0.3000
1.0000
2.3000
5.4000
14.0000
3.7200
3.3212
2.7000
Anderson-Darling Normality Test
95% Confidence Interval for Mu
95% Confidence Interval for Sigma
95% Confidence Interval for Median
Time a Part is on Backorder (days)
USL = 2 Days
DPMO = 1.4
sigma process
Descriptive Statistics
The median time for parts on backorder is 2.3 days. With a target of 2 days
our process defect rate is 53%
Tollgate Review
D M A I C Descriptive Statistics
110 60 10
14
12
10
8
6
4
2
0
Observation
(
Y
)
0.5296
0.4704
3.0000
76.3333
76.0000
0.5370
0.4630
10.0000
58.4957
58.0000
Approx P-Value for Oscillation:
Approx P-Value for Trends:
Longest run up or down:
Expected number of runs:
Number of runs up or down:
Approx P-Value for Mixtures:
Approx P-Value for Clustering:
Longest run about median:
Expected number of runs:
Number of runs about median:
Run Chart for (Y)
Our process is stable with no clustering, mixtures, trends, and oscillations
Tollgate Review
D M A I C Identify variation Sources
Factor Name Data Type Analysis Tools Statistically Significant
X1 Press Uptime Continuous
Simple Linear Regression
Mood's Median Test
Test for Equal Variances
No
X2 Set Up / Change Over Continuous
Mood's Median Test
No
X3 Tool Availability Discrete
Mood's Median Test
No
X4 Press Availability Discrete
Mood's Median Test
No
X5
Spare Tooling Part
Availability
Discrete
Mood's Median Test
No
X6
Mantenance Response
Time
Continuous
Mood's Median Test
Yes - Difference in Center
X7
Tool & Die Response
Time
Continuous
Mood's Median Test
Yes - Difference in Center and
variation
X8 Orders vs. Pulls Discrete
Mood's Median Test
No
X9 Low Volume Discrete
Mood's Median Test
No
X10 Red Tag or Care Discrete
Mood's Median Test
No
X11 Start-Stop Part Discrete
Mood's Median Test
No
Tollgate Review
X1
Y
1
90 80 70 60 50 40 30 20 10 0
30
25
20
15
10
5
0
S 3.69418
R-Sq 3.7%
R-Sq(adj) 2.9%
Fitted Line Plot
Y1 = 4.632 - 0.04227 X1
Data analysis shows that machine uptime and time to fill a backorder do not
have a strong correlation not statistical root cause
Regression Analysis: Y1 versus X1 (Uptime)

The regression equation is
Y1 = 4.632 - 0.04227 X1

S = 3.69418 R-Sq = 3.7% R-Sq(adj) = 2.9%

Analysis of Variance

Source DF SS MS F P
Regression 1 62.52 62.5237 4.58 0.034
Error 120 1637.63 13.6470
Total 121 1700.16
X1 - Uptime
Tollgate Review
D M A I C
X2
Y
1
14 12 10 8 6 4 2 0
14
12
10
8
6
4
2
0
S 2.95590
R-Sq 0.7%
R-Sq(adj) 0.0%
Fitted Line Plot
Y1 = 3.108 + 0.08494 X2
Mood Median Test: Y speed versus x2 speed

Mood median test for Y speed
Chi-Square = 0.02 DF = 1 P = 0.899

Individual 95.0% CIs
x2 speed N<= N> Median Q3-Q1 ----+---------+---------+---------+--
Long 10 9 2.30 5.60 (--------*------------------------)
Short 49 47 2.30 3.90 (-----*-)
----+---------+---------+---------+--
1.5 3.0 4.5 6.0

Overall median = 2.30
Identify variation Sources
X2 Set Up / Change Over
Data analysis shows that Set Up / Change Over Time and time to fill a
backorder have no correlation not statistical root cause
Mood Median Test: Y versus X2

Mood median test for Y
Chi-Square = 0.09 DF = 1 P = 0.761

X2 N<= N> Median Q3-Q1 --+---------+---------+---------+----
No 34 35 2.40 4.40 (-------------------*------------)
Yes 24 22 2.15 4.10 (--------------*-----------------)
--+---------+---------+---------+----
1.50 2.00 2.50 3.00

Tollgate Review
D M A I C
X3
Y
1
Y N
30
25
20
15
10
5
0
Boxplot of Y1 vs X3
X3 Tool Availability
No difference in either the center (median) or spread (variation) between tool
Available yes vs. no not statistical root cause
Mood Median Test: Y1 versus X3

Mood median test for Y1
Chi-Square = 0.00 DF = 1 P = 0.948

X3 N<= N> Median Q3-Q1 ---+---------+---------+---------+---
N 7 7 2.35 5.63 (--------*--------------------------)
Y 55 53 2.30 4.30 (---*--)
---+---------+---------+---------+---
1.5 3.0 4.5 6.0

Test for Equal Variances: Y1 versus X3

95% Bonferroni confidence intervals for standard deviations

X3 N Lower StDev Upper
N 14 2.12450 3.06088 5.31933
Y 108 3.32853 3.84031 4.52931

F-Test (normal distribution)
Test statistic = 0.64, p-value = 0.361

Levene's Test (any continuous distribution)
Tollgate Review
D M A I C
X4
Y
1
Y N
30
25
20
15
10
5
0
Boxplot of Y1 vs X4
X4 Press Availability
The p values are greater than .05; we accept the null hypothesis ~there is
no difference in backorder time when a press is available yes vs. no

Chi-Square = 1.11 DF = 1 P = 0.293

X4 N<= N> Median Q3-Q1 ---+---------+---------+---------+---
N 22 16 1.65 5.00 (---------*-------------------)
Y 40 44 2.40 4.40 (-----------*------------)
---+---------+---------+---------+---
1.20 1.80 2.40 3.00


A 95.0% CI for median(N) - median(Y): (-1.70,0.60)



N 38 4.11245 5.18848 6.98004
Y 84 2.47510 2.90730 3.51331


Tollgate Review
D M A I C
X5
Y
1
Yes No
14
12
10
8
6
4
2
0
Boxplot of Y1 vs X5
X5 Spare Tooling Part
Availability
Although the medians appear different, there is not enough data to statistically
conclude there is a difference there were only six samples when spare
tooling was not available

Chi-Square = 0.70 DF = 1 P = 0.401

X5 N<= N> Median Q3-Q1 -------+---------+---------+---------
N 2 4 4.30 5.83 (-------------*--------------------)
Y 54 52 2.30 4.40 (--*-)
-------+---------+---------+---------
2.5 5.0 7.5


A 95.0% CI for median(N) - median(Y): (-2.00,9.70)



N 6 2.34663 4.00221 11.4501
Y 106 2.46978 2.85313 3.3707


Tollgate Review
D M A I C
X
6

>

4
95% Bonferroni Confidence Intervals for StDevs
Yes
No
5.0 4.5 4.0 3.5 3.0 2.5 2.0
X
6

>

4
Y1
Yes
No
14 12 10 8 6 4 2 0
F-Test
0.124
Test Statistic 0.67
P-Value 0.197
Levene's Test
Test Statistic 2.41
P-Value
Test for Equal Variances for Y1
X6 > 4
Y
1
Yes No
14
12
10
8
6
4
2
0
Boxplot of Y1 vs X6 > 4
X6 Maintenance Response
Time
Statistical Root Cause with a p-value of .004 we reject the null hypothesis;
there is a difference in times. When the maintenance call takes over 4 hours
then the backorder time goes up significantly!!
Mood Median Test: Y1 versus X6 > 4

Chi-Square = 8.35 DF = 1 P = 0.004

X6 > 4 N<= N> Median Q3-Q1 -----+---------+---------+---------+-
No 53 40 1.70 3.00 (---*--)
Yes 5 17 5.70 4.73 (---------------*-----)
-----+---------+---------+---------+-
2.0 4.0 6.0 8.0

Tollgate Review
D M A I C
X
7

>

4
Yes
No
4.0 3.5 3.0 2.5 2.0
X
7

>

4
Y1
Yes
No
14 12 10 8 6 4 2 0
F-Test
0.059
Test Statistic 1.02
P-Value 0.897
Levene's Test
Test Statistic 3.63
P-Value
X7 Tool & Die Repair Time
Statistical Root Cause with a p-value of .001 we reject the null hypothesis;
there is a difference in times. When the maintenance call takes over 4 hours
then the backorder time goes up
X7 > 4
Y
1
Yes No
14
12
10
8
6
4
2
0
Boxplot of Y1 vs X7 > 4
Mood Median Test: Y1 versus X7 > 4

Chi-Square = 11.72 DF = 1 P = 0.001

X7 > 4 N<= N> Median Q3-Q1 -----+---------+---------+---------+-
No 22 6 1.00 1.53 (----*---)
Yes 36 51 2.70 5.00 (---*--------)
-----+---------+---------+---------+-
1.0 2.0 3.0 4.0

Tollgate Review
D M A I C
X8
Y
1
Yes No
14
12
10
8
6
4
2
0
Boxplot of Y1 vs X8
X8 Orders vs. Pulls

Chi-Square = 0.01 DF = 1 P = 0.928

X8 N<= N> Median Q3-Q1 ---+---------+---------+---------+---
No 28 28 2.35 3.55 (----------*--)
Yes 30 29 2.30 4.40 (---------------*-----------------)
---+---------+---------+---------+---
1.40 2.10 2.80 3.50

X
8
Yes
No
4.0 3.5 3.0 2.5 2.0
X
8
Y1
Yes
No
14 12 10 8 6 4 2 0
F-Test
0.273
Test Statistic 0.76
P-Value 0.299
Levene's Test
Test Statistic 1.21
P-Value
No difference in either the center (median) or spread (variation) when we ask
If the pull was greater than the order, yes vs. no not statistical root cause
Tollgate Review
D M A I C
(X9)
(
Y
)
Y N
14
12
10
8
6
4
2
0
Boxplot of (Y) vs (X9)
X9 Low Volume

Chi-Square = 1.01 DF = 1 P = 0.315

X9 N<= N> Median Q3-Q1 -------+---------+---------+---------
N 53 53 2.35 4.10 (---*-)
Y 9 5 1.85 6.98 (-----*--------------------------)
-------+---------+---------+---------
2.0 4.0 6.0

(
X
9
)
Y
N
9 8 7 6 5 4 3 2
(
X
9
)
(Y)
Y
N
14 12 10 8 6 4 2 0
F-Test
0.282
Test Statistic 0.35
P-Value 0.007
Levene's Test
Test Statistic 1.17
P-Value
Test for Equal Variances for (Y)
If the part is low volume, yes vs. no not statistical root cause
Tollgate Review
X10 Red Tag or Care
X10
Y
1
Yes No
14
12
10
8
6
4
2
0
Boxplot of Y1 vs X10

Chi-Square = 1.31 DF = 1 P = 0.253

X10 N<= N> Median Q3-Q1 ------+---------+---------+---------+
No 21 15 1.85 4.30 (-----------*-------------)
Yes 37 42 2.40 4.40 (----------*------------)
------+---------+---------+---------+
1.40 2.10 2.80 3.50

X
1
0
Yes
No
4.25 4.00 3.75 3.50 3.25 3.00 2.75 2.50
X
1
0
Y1
Yes
No
14 12 10 8 6 4 2 0
F-Test
0.941
Test Statistic 1.17
P-Value 0.567
Levene's Test
Test Statistic 0.01
P-Value
If the material had any pieces in redtag, yes vs. no not statistical root cause
Tollgate Review
X11 Start/Stop Part
X12
(
Y
)
Yes No
14
12
10
8
6
4
2
0
Boxplot of (Y) vs X12
Mood Median Test: (Y) versus X12

Mood median test for (Y)
Chi-Square = 3.28 DF = 1 P = 0.070

X12 N<= N> Median Q3-Q1 ---+---------+---------+---------+---
No 29 19 1.50 4.60 (-------*--------------------------)
Yes 29 38 2.40 4.40 (-----------*---------)
---+---------+---------+---------+---
1.20 1.80 2.40 3.00

X
1
2
Yes
No
4.0 3.5 3.0 2.5 2.0
X
1
2
(Y)
Yes
No
14 12 10 8 6 4 2 0
F-Test
0.476
Test Statistic 1.49
P-Value 0.131
Levene's Test
Test Statistic 0.51
P-Value
Test for Equal Variances for (Y)
If this PN was a start/stop part, yes vs. no not statistical root cause
Tollgate Review
D M A I C
Analyze Take - Aways
- Maintenance Response Time is a significant contributor to
Time to Fill Back Order (Y)

- Tool & Die repair time is a significant contributor to Time to
Fill Back Order (Y)

- Both Maintenance Response Time and Tool & Die Repair
Time impact Uptime but Uptime alone is not a significant
factor

- Other potential causes (Xs) did not show significant impact
to Time to Fill Back Order

- This statistical data indicates that in order to reduce the Time
to fill a Back Order, which potentially leads to premium, we
must reduce the Maintenance Response Time and the Tool
& Die Repair Time

Tollgate Review
D M A I C
Next Steps
- Continue in the Improve Phase

- Develop solutions to improve Maintenance Response Time
and Tool & Die Repair Time

- Collect Data from the Recommended improvement plan

- Evaluate if corrective actions reduce or eliminate the impact
of Maintenance Response Time and Tool & Die Repair Time
on the Time to Fill a back Order / Premium

Tollgate Review
D M A I C

Plant Premium Reduction
& Delivery Improvement

Improve / Control
Date: 05 / 05 / xx

Tollgate Review
D M A I C
Develop Solutions
- Tool & Die Repair Time Solutions

- Dedicated Tool & Die support on all Shifts
- Use the Andon System to improve call priorities
- Die Maker inspects and releases parts in place of a traditional release person
- Document all Die changes in the log book
- Dedicated tool makers for different die families

- Maintenance Response Time Solutions

- Dedicated Machine and Maintenance Repair support and on all shifts
- Use the Andon System to improve call priorities
- PC&L notifies maintenance when a part goes on back order
- Maintenance Supervisor copied on all critical parts
Tollgate Review
D M A I C
Test Solutions - Pilot

S
u
b
s
c
r
i
p
t
s
1108
1119
2.5 2.4 2.3 2.2 2.1 2.0 1.9 1.8
S
u
b
s
c
r
i
p
t
s
Y
1108
1119
25 20 15 10 5 0
F-Test
0.000
Test Statistic 1.38
P-Value 0.001
Levene's Test
Test Statistic 16.49
P-Value
Test for Equal Variances for Y
Results for: 1108 vs. 1119

Mood Median Test: Y
Mood median test for Y
Chi-Square = 60.60 DF = 1 P = 0.000

Subscripts N<= N> Median Q3-Q1 +---------+---------+---------+------
1119 62 150 2.40 2.68 (-------*-----)
1108 789 574 1.40 1.80 (-------*
+---------+---------+---------+------
1.00 1.50 2.00 2.50


A 95.0% CI for median(1119) - median(1108): (0.60,1.30)

Test for Equal Variances: Y

95% Bonferroni confidence intervals

Subscripts N Lower StDev Upper
1119 212 2.01797 2.23877 2.51152
1108 1363 1.82901 1.90766 1.99312


The p values are less than .05; we reject the null hypothesis ~there is a
difference in backorder. The solutions have impacted both variation and median
Tollgate Review
D M A I C

New Capability Analysis
Total
1119
1108
Characteristic
1.920
1.370
2.014
ZBench
1.500
1.500
1.500
ZShift
337143
551887
303742
PPM
0.337143
0.551887
0.303742
DPO
0.552
0.304
DPU
1575
212
1363
TotOpps
1
1
Opps
212
1363
Units
531
117
414
Defs
Capability Analysis
Applying the goal of less than 2 days on backorder the solutions implemented
improvement our process from 1.4 sigma to a 2 sigma process.
Tollgate Review
D M A I C
Timeline for Full Solution Implementation
- Department 11xx was the first module installed.

- Implementation of the remaining modules that will utilize
these solutions are as follows:

- Department 11xx will be completely installed by 5/15/xx


- Department 11xx (Low Volume) will be completely installed by 10/xx

- Department 11xx will be replaced by 11xx (8/1/xx)

- Department 11xx will be replaced by 11xx (6/1/xx)

Tollgate Review
D M A I C
Financial Impact
- January April of 200x compared to January April 200x indicates a
reduction in premium of 16%, 80%, 84.5% and 31.4% respectively.
- This equates to a 61.9 % reduction in premium over the same four month period.

- Over the last two months departments without the improvements have
accounted for significantly more premium than department 110x.
- Dept 110x Non-Improved Depts
- March 18.0 % 52.0 % (1119)
- April 27.8 % 58.9 % (1116)

- Our implemented solutions improved our process by 30 %
- From 1.4 Sigma to a 2.0 Sigma

- Our implemented solutions reduced our median time to fill a back order
by 41.6 %
- From a median of 2.4 to a median of 1.4

- Based on these improvements we conclude that the plant 11 premium
will be reduced by approximately 34.0 %

- Based on 200x premium of $308,940, the financial impact will be a
reduction in premium of $105,040.00 per year.

Tollgate Review
D M A I C
Control Plan
- Plant xx team should monitor Maintenance Response Time
and tool & Die Repair time.
- This should be monitored on a monthly basis.

- If Maintenance Response Time or Tool & Die Repair Time is
greater than 4 hours, plant should investigate root cause

- Need to determine responsible person (s) to monitor these
issues

- System generated reports for Maintenance Response Time
and Tool & Die Repair Time will support in this effort
Tollgate Review
D M A I C
Intangibles
- Breaking down old barriers and avoiding finger-pointing by
using real data collected by a true cross-functional team
- Excellent cross functional team that was represented by manufacturing, PC&L,
tool engineer, Quality, IT, Terminal Store Supervisor and Manufacturing & PC&L
Master black belts

- Dispelled many theories about causes for premium and
allowed us to focus on real root cause

- Provided additional data for the manufacturing team to focus
on the real causes for premium and other machine down
time / Uptime issues

- Processes across all functions are interrelated but not all
controlled by the plant manager
- Good cross functional support is required for the plant to be successful

- Excellent job by IT support to provide accurate real time
data.
- Every black belt project should have an IT person on the team

- Excellent data collection and support by all team members.

Tollgate Review
D M A I C

Back-up
Tollgate Review
D M A I C
$
2
,
5
8
0
$
2
,
3
8
2
$
6
,
8
3
7
$
2
,
6
9
4
$
1
1
,
4
2
0
$
6
,
8
3
7
$
1
4
,
8
1
4
$
3
,
6
0
2
$
1
,
5
7
6
$
6
7
8
$
5
1
2
$
1
,
5
5
2
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
J
a
n
u
a
r
y
F
e
b
u
r
a
r
y
M
a
r
c
h
A
p
r
i
l
M
a
y
J
u
n
e
J
u
l
y
A
u
g
u
s
t
S
e
p
t
e
m
b
e
r
O
c
t
o
b
e
r
N
o
v
e
m
b
e
r
D
e
c
e
m
b
e
r
Plant xx- Dept. xxxx Premium in 200x
Tollgate Review
D M A I C
$
2
,
1
6
8
$
4
5
6
$
1
,
0
5
6
$
1
,
8
4
7
$0
$500
$1,000
$1,500
$2,000
$2,500
January Feburary March April
Plant xx- Dept. xxxx Premium in 200x

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