Glynn Mpofu, Final Research Project

Application of Lean Six Sigma to reduce casting defects at SIRMET
(A case study: SIRMET FOUNDRY)
Supervisor: Mr. R. Chiweshe
Name (s) : Mpofu Glynn

Student ID : C1010331D
Programme : B. Eng. (Hons) Production Engineering
Date : November 2014
Dissertation submitted for the partial fulfillment of Bachelor of Engineering Degree (Hons) in Production Engineering. CUT ZW
Application of Lean 6 Sigma to reduce casting defects at Sirmet Foundry
(A Case Study: SIRMET FOUNDRY)
DECLARATION
In presenting this project in partial fulfillment of the requirements for a B.Eng. Production
Engineering at the Chinhoyi University of Technology, I agree that permission for extensive
copying of this report for scholarly purposes may be granted by the head of my department. It is
understood that copying or publication of this report for financial gain shall not be allowed
without my written permission.
Department of Production Engineering & Technology
School of Engineering Sciences & Technology
The Chinhoyi University of Technology
Private Bag 7724
Chinhoyi
Zimbabwe
Supervisors signature…………………………………………..
Date………………………………………….
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Acknowledgements
First and foremost, I would like to thank my supervisor Eng. R Chiweshe for his guidance,
support and motivation throughout my Final Project. It has been a great pleasure to work with
him. His enthusiasm is contagious and his commitment to the academic job and dedication to the
well-being of his students will inspire me throughout my career. His belief in the project is much
appreciated. I would also like to acknowledge all lectureship staff from the Department of
Production Engineering at CUT for their guidance throughout the entire degree programme. I am
much indebted to Mr. Nyemba, Production Manager at SIRMET foundry for the opportunity to
collaborate on an extremely interesting industrial problem. Finally yet importantly, I would like
to thank SIRDC for their cooperation.
Last but not least I would like to thank my mother for her prayers throughout my programme.
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Abstract
This article represents a process and quality improvement issue applied at SIRMET foundry,
based on Lean Six Sigma. Lean Six Sigma is an overall improvement approach combining and
capitalizing the strengths of Six Sigma and Lean Manufacturing improvement programs. More
specifically, the DMAIC (Define, Measure, Analyze, Improve and Control) project management
methodology and various lean six sigma tools are utilized to streamline processes and enhance
quality improvement. The author has made use of his developed knowledge from his research
and literature review in carrying out the case project on SIRMET foundry. The objective is to
minimize the number of process defects and optimize the efficiency of the casting operation. The
DMAIC approach was followed to identify the causes of this problem, measure the process
capability, analyze the potential causes of demoted quality, implement improvements and control
the process such that long-term improvements can be sustained. The author has proposed a
process model with minimal process variation. This study aims to implement a novel approach to
improve the quality (reducing defects) of SIRMET foundry by Lean Six Sigma methodology on
the selected projects.
Keywords: Lean Six Sigma, DMAIC, Foundry, Six Sigma and Lean Manufacturing.
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Table of Contents
Acknowledgements ...........................................................................................................................
CHAPTER 1: Introduction ............................................................................................................. 1
1.1 Introduction ............................................................................................................................... 1
1.2Background ................................................................................................................................ 1
1.3Problem Statement ..................................................................................................................... 2
1.4Aim ............................................................................................................................................ 3
1.5Objectives .................................................................................................................................. 3
1.5Research Justification ................................................................................................................ 3
1.6 Chapter Summary ..................................................................................................................... 3
CHAPTER 2: Literature Review .................................................................................................... 4
2.1 Introduction ............................................................................................................................... 4
2.2 The Foundry Process................................................................................................................. 4
2.2.1 Process Description ................................................................................................................ 5
2.5 Lean Manufacturing ................................................................................................................ 14
2.5.1 Lean Tools and Techniques ................................................................................................. 16
2.6 Lean Six Sigma ....................................................................................................................... 19
2.7 Case Study Review ................................................................................................................. 20
2.7.1The Define Phase .................................................................................................................. 21
2.7.2The Measure Phase ............................................................................................................... 22
2.7.3 Analysis Phase ..................................................................................................................... 24
2.7.4 Improve Phase ...................................................................................................................... 24
2.7.5. The Control Phase ............................................................................................................... 25
2.7.6 Summary and Knowledge Applicable to SIRMET Case Study .......................................... 26
3.2 Define Phase ........................................................................................................................... 27
3.3 Measure Phase ........................................................................................................................ 28
3.4 Analyze Phase ......................................................................................................................... 29
3.5 Improve Phase ......................................................................................................................... 29
3.5.1 Processing Simulation .......................................................................................................... 29
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3.6 Control Phase .......................................................................................................................... 30

3.7 Summary ................................................................................................................................. 30
4.0 CHAPTER 4: Company Audit................................................................................................ 30
4.1 SIRMET’s Operation Context-The Production/Process ......................................................... 31
Plant Flow sheet ............................................................................................................................ 31
4.2 The Quality Department at SIRMET FOUNDY .................................................................... 33
4.3 Inspection Process at SIRMET FOUNDY ............................................................................. 33
4.4 Review of the goods returned records .................................................................................... 35
4.5 Rework Level of mill balls at SIRMET .................................................................................. 36
4.6 Current Quality Strategy/Policy at SIRMET .......................................................................... 37
4.7 Quality Manual ....................................................................................................................... 38
4.8 Conclusion .............................................................................................................................. 38
5.0 Introduction ............................................................................................................................. 39
5.1 Define Phase ........................................................................................................................... 39
5.1.1 Findings: Identification of Scope and Problem Area ........................................................... 44
5.2 Measure Phase ........................................................................................................................ 45
5.2.1 Cycle time and Takt time Analysis ...................................................................................... 47
5.2.2 Findings................................................................................................................................ 48
5.3 Analyse Phase ......................................................................................................................... 48
5.3.4 Analysis of Variance of Pattern Makers .............................................................................. 56
5.4 Improve Phase ......................................................................................................................... 60
5.4.1 Simulation as part of VSM .................................................................................................. 60
5.4.3 Key Measurements............................................................................................................... 63
5.4.4 Simulation Scenes ................................................................................................................ 64
5.5 Control Phase .......................................................................................................................... 74
Chapter 6: Conclusions and Recommendations ........................................................................... 75
6.1 Introduction ............................................................................................................................. 75
6.2 Conclusions ............................................................................................................................. 75
6.3 Main Findings ......................................................................................................................... 76
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6.4 Recommendations ................................................................................................................... 76

References ..................................................................................................................................... 77
Lists of books reviewed: ............................................................................................................... 79
Website referenced: ...................................................................................................................... 79
Appendix A: Interview questions ................................................................................................. 80
Appendix B: Data for Reviewed Case Study- Analysis Phase ..................................................... 81
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List of Figures
Figure 1 SIRMET foundry process flow sheet .............................................................................................. 5
Figure 2 Sigma variation (Adopted from Shankar2003) .............................................................................. 6
Figure 3 Checksheet (Adapted from Six Sigma Handbook, 2012).............................................................. 10
Figure 4 Histogram (Adapted from Sion, 2005) ......................................................................................... 10
Figure 5 Pareto Diagram (Adapted from Rowlands and Kastle, 2007) ..................................................... 11
Figure 6 Ishkawa diagram (Adapted from Lean Six Sigma Pocket Toolbox, 2005) ................................... 12
Figure 7 Scatter diagrams (Adapted from Pyzdek Guide to SPC, 2000).................................................... 13
Figure 8 Control Chart (Sharma, 1998) ..................................................................................................... 14
Figure 9 Cause and Effect diagram of Porous Core (Adapted from Tiwari, 2005) ................................... 23
Figure 10 Six Sigma Methodology .............................................................................................................. 27
Figure 11 Steps in coming up with Value Stream Map ............................................................................... 28
Figure 12 SIRMET Plant Layout ................................................................................................................ 31
Figure 13 Pattern Making at SIRMET........................................................................................................ 32
Figure 14 Tonne Induction Furnace ........................................................................................................... 32
Figure 15 Quantity Department Organogram ............................................................................................ 33
Figure 16 Product-Quantity Analysis by Product Group ........................................................................... 40
Figure 17 Product Defect Rate Analysis..................................................................................................... 41
Figure 18 Product Revenue Analysis for Feb 2014 .................................................................................... 42
Figure 19 Product Revenue Analyses for March 2014 ............................................................................... 42
Figure 20 Product Revenue Analysis for April ........................................................................................... 43
Figure 21 Casting State VSM for mill balls casting operations ................................................................. 44
Figure 22 Defect Analysis for 12 weeks of mill balls.................................................................................. 46
Figure 23 Defect Origin Analyses .............................................................................................................. 47
Figure 24 Cycle Time Analysis ................................................................................................................... 48
Figure 25 Cause and Effect diagram for Casting Defects .......................................................................... 49
Figure 26 Cause and Effect Diagram for Process Inefficiency .................................................................. 49
Figure 27 Simulation results from Eviews Software ................................................................................... 53
Figure 28 p Chart for sample fraction Nonconforming .............................................................................. 56
Figure 29 Box plot of Measurements by Operator ..................................................................................... 60
Figure 30 Push System VSM ....................................................................................................................... 61
Figure 31 Pull System VSM Figure 31 ....................................................................................................... 62
Figure 32 Push System Simulation ............................................................................................................. 65
Figure 33 Pull System Simulation............................................................................................................... 66
Figure 34 Push System Simulation Results ................................................................................................. 67
Figure 37 Pull System Simulation Results .................................................................................................. 70
Figure 38 Pull System Simulation Results .................................................................................................. 71
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List of Tables
Table 1 The DMAIC Methodology and Steps Included in each Phase ........................................... 8
Table 2 Seven Wastes, Lee (2004) ................................................................................................ 15
Table 3 Combining key Lean and Sigma principles ..................................................................... 20
Table 4 Factor levels for Factorial Design (Adapted from Antony, Kumar, Tiwari, 2005) ......... 25
Table 5 Rework hours vs. Total Productive hours ........................................................................ 35
Table 6 Quantity, frequency and reasons for rejection of returned mill balls ............................. 36
Table 7 Products produced per week in 2014 .............................................................................. 40
Table 8 Product Revenue by Product Type................................................................................... 41
Table 9 Total units produced by defects ....................................................................................... 45
Table 10 Defects origin of mill balls............................................................................................. 46
Table 11 Regression Analysis Table ............................................................................................. 51
Table 12 Data Table for Process Defects ..................................................................................... 55
Table 14 Calculations Table ......................................................................................................... 58
Table 15 Anova Table ................................................................................................................... 59
Table 16 Simulation Output data .................................................................................................. 72
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CHAPTER 1: Introduction
1.1 Introduction
Casting quality is one of the keys to survival in the foundry industry today. Quality is defined as
simply meeting customer’s requirements, (Juran,1993).Casting is a very versatile process and
capable of being used in mass production .Improper quality control of the casting process results
in defective castings, which reduces the productivity of foundry industry. This calls for ways to
reduce production cost, enhance productivity and improve product quality. For these reasons,
researchers all over the world proposed several improvement strategies and tools to satisfy
organization’s needs. Such initiatives include Total Quality Management, Quality Awards, Total
Productive Maintenance (TPM), Lean and Six Sigma. Nowadays the industrial world has
realized that the lean six-sigma philosophy is certainly a viable solution to the foundry quality
problems (DR Parajata, 2011).
1.2Background
SIRMET is a foundry division of the Scientific and Industrial Research and Development Center
(SIRDC) located in Harare. SIRMET foundry is in the business of metal casting, manufacturing
products such as mill balls, slurry pumps, water pumps, impellers brake discs, brake drums,
railway glands and clips. SIRMET foundry practice sand casting and the major drawback in this
type of casting is the formation of casting defects such porosity, hot tears and blowholes. Mill
balls is the highest revenue generating product at SIRMET and has also the highest defect rate of
40% out of the products produced by SIRMET. 72% of the casting defects that are found on mill
balls are blow holes. This research will focus on blow defects on mill balls since they are the
casting defects that are dominating on the highest revenue generating product at SIRMET.
Quality management of products at SIRMET has solely relied on reactive techniques for
inspection of foundry products instead of being proactive. The quality inspection process is only
done to final product instead of monitoring the whole casting process from raw materials up to
finished product. Currently there is no strategy to control casting defects at SIRMET
FOUNDRY, and therefore casting defects occurred per production are stochastic. Unevenness in
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the production schedule contributed much on the formation of blow-hole defects on mill balls.
SIRMET production schedule is planned according to demand and production can fluctuate
dramatically for example in March 2014,Zim Plats wanted 4000 mill balls and in April 2014
MIMOSA MINE requested 9000 mill balls. The company has the capacity of producing 3000
mill balls per month, hence when demand is higher than capacity the company has to produce
more than its staff and equipment can handle. SIRMET foundry places emphasis on push
production, producing huge volumes of products to meet high demand. This has led to
overproduction, which is considered the fundamental waste as it leads to the other types of
wastes such as casting defects for example in March 2014, Zim Plats wanted 4000 mill balls and
the company has the capacity of producing 3000mill balls per month, hence the company was
forced to produce 4000 mill balls because of high demand. High defect rate of mill balls was
recorded that month and 30% of the defects that were recorded that month were blow holes.
SIRMET casting process is inefficient, accounting for the large proportion of time dominated by
non-value added activities. The non-value added time of the casting process at SIRMET is 38hrs
compared with 28hrs of value added operations. Uneven distribution of the casting process at
SIRMET with respect to cycle time and non-value added activities in the casting process also
contributed to the formation of casting defects.
The inefficiency of the casting process and the unacceptable quality of the casting products
imposed a negative effect on the SIRMET’s objectives in reducing cost and maximizing
financial return. High defect rate of 40% of mill balls at SIRMET FOUNDRY has impacted
negatively on the business due to rise in cost of poor quality (COPQ) of about 25% of the
revenue generated by SIRMET FOUNDRY per month.30% of the operations at SIRMET
FOUNDRY are reworks and this has imposed costs of power consumption to the company of
about 4000 Kwhr per month which costs the company per month and this outstrips the little
profits SIRMET FOUNDRY makes.
1.3Problem Statement
There is high defect rate of mill balls of 40% at SIRMET foundry due to an ineffective Quality
Control System.
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1.4Aim
To reduce the defects rate from 40-10% through lean six-sigma business improvement
methodologies.
1.5Objectives
The project seeks to address and fulfill the following objectives:
 To minimize non-value added activities in the casting process of mill balls.

 To eliminate batch and queue push production systems in the casting process using lean
six sigma tools and techniques.
 To develop a lean six sigma Arena based simulation model with less waste for the casting
process of mill balls at SIRMET FOUNDRY.
 To use the DMAIC six sigma methodology in solving the quality problem at SIRMET
foundry.
1.5Research Justification
Poor product quality is a cause for concern at SIRMET FOUNDRY. This case study is an
attempt to address the quality problems of the foundry products at SIRMET foundry. The
outcome of this case study is intended to optimize the process parameters of the casting
manufacturing process. It is intended that the results from the model will be used to assist other
foundries with quality problems in Zimbabwe.
1.6 Chapter Summary

Chapter One is the introductory chapter that covers the background to the study; the problem
statement, the aim and objectives, and justification of the study. In Chapter Two relevant
literature to the study is reviewed. Chapter three covers the research methodology to be used in
the study.
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CHAPTER 2: Literature Review
2.1 Introduction
This section explores the lean six-sigma subject and its applications in foundries in detail. The
literature review begins with a detailed description of foundry operations including process flow
sheets. This is followed by definition and review of similar Lean Six Sigma projects done
elsewhere in foundry related operations and a critical analysis of chosen case studies. The section
is concluded by the author’s summary of the knowledge acquired from the case studies, as well
as a description of how it can be applied to the particular case of SIRMET foundry.
2.2 The Foundry Process

A foundry is a factory that produces metal castings. Metal casting is one of the direct methods of
manufacturing the desired geometry of component. The method is also called as near net shape
process. It is one of the primary processes for several years and one of important process even
today in the 21st century. Early applications of casting are in making jewellery items and golden
idols. Today, casting applications include automotive components, spacecraft components and
many industrial & domestic components, apart from the art and jewellery items.
The principle of manufacturing a casting involves creating a cavity inside a sand mold using a
pattern and then pouring the molten metal directly into the mold. Casting is a very versatile
process and capable of being used in mass production. The size of components varied from very
large to small, with intricate designs. Out of the several steps involved in the casting process,
moulding and melting processes are the most important stages. Fig 1shows process flow sheet of
SIRMET foundry drawn by the author using Microsoft Visio.
4
1. 2
Raw Materials, Sand, Scrap Metal &
Sand Binders Alloy Additives
Checked
4.
Sand
Charge Preparation
Mixing
P-1
6.
Sand Moulding 5.
Core Making
3
Core Setting
7.
Pouring
8.
FURNACE
Mechanical Scrubbing Shakeout Casting SIRMET PROCESS
FLOWSHEET
P-2
10. DRAWN BY
P-3 GLYNN LEAN SIX SIGMA
9. MPOFU PROJECT
Sandblasting & grit Removal Inspection Delivery of Products to Customers
Figure 1 SIRMET foundry process flow sheet
2.2.1 Process Description

1. Raw materials are ordered from the warehouse and storage space or store rooms
2. Scrap metal and the necessary alloying elements are identified and ordered from the
stores
3. The scrap metal and alloying elements are mixed according to the batch composition
specifications
4. The charge is fed into the furnace and melted in the induction furnace
5. The cores for the hollow parts of the castings are made
6. The sand molds are prepared and the cores are set
7. The molten metal is poured into the molds and after cooling, the castings are shaken out
of the sand mold.
8. Back-up sand is recycled for mold making
9. The castings are cleaned and inspected
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2.4 Six Sigma Defined

Statistically, the term sigma represents the standard deviation, the variation around the process
mean (Cheng, 2007). The objective of Six Sigma is to achieve a quality level of at most 3.4
defects per million opportunities (DPMO). Six Sigma means that there are 6 standard deviations
from the process mean to the specification limits when a normally distributed process is centered
(Kaminsky, 2002) (See Figure 2). Six Sigma is a well-structured business improvement tool that
can help a company to achieve expected goal through continuous improvement (Rao, 2005). For
many companies, Sigma quality level is a measure of the process defect rate and thus can be used
to measure the quality of the manufacturing process (i.e. a high Sigma level indicates that the
process results in a lower defect rate, whereas a low Sigma level illustrates a higher defect rate)
(Kumar, 2006). Sigma quality level also helps to set a realistic target for improvement of process
quality during the Define, Measurement, Analyze, Improve, and Control (DMAIC) cycle.
Figure 2 Sigma variation (Adopted from Shankar2003)
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2.4.1 The DMAIC Cycle

Nowadays, Six Sigma represents the strategy combing the Six Sigma statistical measure and
TQM. The approach used in Six Sigma to solve problems is the DMAIC cycle, which stands for
Define, Measure, Analyze, Improve and Control, the steps taken to attain Six Sigma quality
management are as follows:
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Table 1The DMAIC Methodology and Steps Included in each Phase
Phase Steps Included

1. Define  Define the scope and boundaries
 Define defects
 Define team charter to identify process definition, critical to quality
parameters, benefit impact, key milestone activities with dates ,
support required and core team members
 Estimate the impact of the project in monetary terms
2. Measure  Map process and identify process inputs and outputs

 Establish baseline process capability
 Establish measurement system capability
 Conduct cause and effect analysis
 Establish data collection plan
3. Analyse  Gather data
 Identify possible sources of variation that causes problem
 Perform cause and effect analysis to identify parameters that may
significantly affect the process
 Select critical to quality parameters to improve
4. Improve  Screen potential causes that affect process
 Perform design of experiments to identify optimal setting of
process parameters to eliminate problem
 Discover variable relationships
 Establish operating tolerances
5. Control  Plot control charts to establish new process capability
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With the Six Sigma overall strategy, an organization can not only achieve near perfect quality
using the DMAIC methodology, but also attain superior availability, reliability, delivery
performance, and after-market service (Oakland, 2000). All of these factors contribute to
customer satisfaction. To ensure the effectiveness of the Six Sigma philosophy within an
organization, formal training programs must be put in place and supported by management.
2.4.2 Six Sigma Tools and Techniques

The Six Sigma toolkit includes basic statistical process control (SPC) tools, called the
“Magnificent Seven”. These tools are employed in various stages of the DMAIC cycle Define,
Measure, Analyze, Improve and Control. The objectives of employing SPC tools are to bring the
process in control and to reduce variations due to special causes. SPC tools are widely used by
industry for problem solving. After discussing the “Magnificent Seven” on-line processing
monitoring tools, the off-line techniques Regression Analysis, Hypothesis Testing, and Analysis
of Variance (ANOVA) will also be discussed.
2.4.2.1 Run Chart (Check Sheet)

Check sheets are devices which consists of lists of items and some indicator of how often each
item on the list occurs, (Arthur, 2012). It is used for a rough check of the process stability, and it
is particularly useful in identifying changes in the process mean and standard deviation. When
looking at run charts, one pays attention to huge jumps in measurements, patterns that occur over
time (e.g. whether the measurements show an increasing trend), and an increase in variance. A
check sheet is similar to a run chart, but it is used to keep record of equipment over time.
9
Figure 3 Check sheet (Adapted from Six Sigma Handbook, 2012)
2.4.2.2 Histogram
A histogram is a graphical display of measurement frequencies (Shankar, 2003). It is used to
identify the shape and location of the distribution of measurements, but the process must be in
control for the identification of distribution to be accurate. A histogram shows the proportion of
measurements that fall into each bin. The constructor of the histogram determines the number
and range of bins. The mean and variability of the process can be easily seen on the histogram. If
the specification limits are shown, the histogram can display the process capability.
Figure 4 Histogram (Adapted from Sion, 2005)
2.4.2.3 Pareto Diagram

Pareto analysis is the process of ranking opportunities to determine which of many potential
opportunities should be pursued first (Kastle, 2007). A Pareto diagram is similar to a histogram,
but the bins show attribute data instead of measurement ranges. Also, the values plotted are
10
arranged in descending order. This is due to Pareto’s Principle, which states that a small number
of causes contribute to the majority of problem. The aim of the Pareto Chart is to identify these
causes, so they can be eliminated later.
Figure 5 Pareto Diagram (Adapted from Rowlands and Kastle, 2007)
2.4.2.4 Cause and Effect Diagram

Cause and effect diagrams are tools that are used to organize and graphically display all of the
knowledge a group has relating to a particular problem (Lindsay, 2005)A cause and effect
diagram is used to identify and analyze a problem in a team setting (Kurmar, 2006). Teams
brainstorm to generate categories such as materials, machines, personnel, environment, etc.
Within each category, the team identifies causes that contribute to the effect (the problem). A
cause and effect diagram visually displays these causes, and helps the team to locate the most
significant causes that lead to the problem.
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Figure 6 Ishkawa diagram (Adapted from Lean Six Sigma Pocket Toolbox, 2005)
2.4.2.5 Scatter Diagram
A scatter diagram is a plot of one variable versus another (Bank, 1996). One variable is called
the independent variable and it is usually shown on the horizontal (bottom) axis. The other
variable is called the dependent variable and it is shown on the vertical (side) axis. A scatter
diagram is used to investigate the relation between the two quality characteristics on the x and y
axes, e.g. whether x values increase as y values increase. However, note that correlation does not
imply causality, e.g. one cannot conclude that an increase an x causes and increase in y, even if x
values increase as y values increase. To investigate causal relationships, one can use the Design
of Experiments (DOE).
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Figure 7 Scatter diagrams (Adapted from Pyzdek Guide to SPC, 2000)
2.4.2.6 Control Chart

The control chart is similar to a run chart, but it plots measurements over time on a chart with
control limits. It is a plot of a characteristic value against time. These characteristics maybe
variables like length, diameter, etc or attributes such as number of defects on sheets, porosity,
blow holes, etc (Kumar, 2006). The objective of a control chart is to quickly identify the
occurrences of special causes. When an occurrence is indicated by the chart, e.g. if a
measurement falls outside of the control limits, then the process is stopped and the cause is
investigated. The cause is identified, eliminated, and the process is improved. One also looks for
patterns on the control chart. If a pattern exists, it may be an indication that the process is
unstable. There are many types of control charts (to name a few – X-bar, R-bar, S, I, MR) that
are used for different circumstances.
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Figure 8 Control Chart (Sharma, 1998)
2.5 Lean Manufacturing

Lean Manufacturing is a philosophy emphasizing on the reduction of wastes (Kumar, 2006). The
elimination of waste leads to improved quality, and decreased production time and cost. Table
below shows seven categories of wastes:
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Table 2 Seven Wastes, Lee (2004)
In comparison, Lean Manufacturing is the more process-driven quality control initiative, while
Six Sigma is more data-driven. Lean Manufacturing encompasses the following key principles
(Kumar, 2006):
 Pull processing: production is triggered only when there is demand from the customer
end, not pushed by the production end.
 Perfect first-time quality: strive for zero defects, locating defects and controlling
variances at the source
 Waste minimization: minimize all non-value added activities that do not add value,
maximize efficient usage of resources.
 Continuous improvement: continuously reduce costs, improve quality, increase

productivity and encourage information sharing an overall strategy
 Flexibility: systems can react to changing demands to produce a greater diversity of

products in small batches quickly
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 Supplier relationship management: a long-term relationship with suppliers is created and

maintained through collaborative risk sharing, cost sharing and information sharing
arrangements. There is no disconnection between the parties.
The concept of Lean Manufacturing stemmed from the Toyota production system, a
manufacturing philosophy pioneered by Japanese engineers at Toyota. However, it is arguable
that the root of the Lean Manufacturing system is not the Japanese system, but Henry Ford’s
system that advocated high throughput and low inventories, as well as the practice of short-cycle
manufacturing at early Ford assembly plants. Ford invented the system to eliminate quality
problems caused by high production volumes, large batch sizes, and long non-value added queue
times between operations – characteristics of the traditional US “batch-and-queue” production
system (Arnheiter, 2005).
In contrast, Lean Manufacturing encourages small batch sizes and the “pull” strategy, which
means that nothing is made until there is a customer demand. This is called the make-to-order
(MTO) approach (Arnheiter, 2005). With this approach, waste is eliminated and non value-added
activities are eliminated. The reduced cycle time with this approach ensures that defects are
discovered quickly. Similar to Six Sigma, Lean Manufacturing is also an overall strategy. At
every chance, Lean Manufacturing strives to reduce variability. A lean organization attempts to
reduce demand variability, manufacturing variability and supplier variability. For example, when
a Lean organization reduces manufacturing variability, it not only considers variability in the
product quality parameters, but also in task operation times, such as machine downtime,
employee absenteeism and operator skill level.
2.5.1 Lean Tools and Techniques

The Lean Manufacturing toolkit includes a number of tools, techniques and practices that enable
and facilitate the implementation of Lean. The SPC tools and techniques used in Six Sigma are
also part of the Lean Management toolkit. Lean tools and techniques include Five-Why analysis,
5S practice, Just-in-time (JIT) production, Kanban, value stream mapping, Total productive
maintenance (TPM), Production flow balancing, and many more (Kumar, 2006).
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2.5.1.1Five-Why Analysis
The Five-Why Analysis supports kaizen (continuous improvement), a key principle of Lean
Manufacturing. This technique requires employees to pose the question “Why?” five times every
time a problem is encountered. The employee should go to a deeper, more detailed level with
each “Why?” and become closer to locating the root cause of the problem. The Five-Why
Analysis is critical because countermeasures can only be identified when the root cause of the
problem is understood. Below is an illustration of 5 Why Analysis:
1) The company is missing due dates – why?
2) Products have long lead times – why?
3) The company does not have enough manufacturing capacity – why?
4) Setup times are long – why?
5) Product changeover is time consuming.
2.5.1.2 5S Practice
5S is a lean tool that facilitates teamwork. The five S‟s stand for sort, stabilize, shine,
standardize, and sustain – a series of activities for eliminating wastes that lead to errors, defects
and injuries (Liker, 2003).
Sort Sort through items and keep only what is needed while disposing of what is not
Straighten There is a place for everything and everything should be in its place.
Shine The cleaning process exposes abnormal and pre-failure conditions that could hurt
quality or cause machine failure.
Standardize Develop systems and procedures to maintain and monitor the first three S (Sort,
Straighten, and Shine).
Sustain Maintaining a stabilized workplace is an ongoing process of continuous
improvement, so regular management audits should be used to stay disciplined.
5S practice supports a smooth production flow, an essential characteristic of lean system. It also
helps to make problems visible. To enforce 5S practice, workers have to be equipped with the
necessary education and training; they should also be encouraged with rewards to give them
incentive to properly maintain and continuously improve operating procedures and the
workplace environment.
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2.5.1.3 Just-in-Time (JIT) Production

Just in Time is a set of principles, tools, and techniques aimed to eliminate wastes by producing
only the necessary products, at the necessary time and in the necessary quantity (Regani, 2004).
JIT encourages the organization to produce and deliver products in small quantities, with short
lead times, to meet specific customer needs. With JIT, the company does not build up excessive
inventory, resulting in significant reduction of inventory costs. Also, the company is more
flexible to changing customer demands. JIT is based on the pull system of manufacturing. With
the pull system, production is initiated with customer demand. In other words, there would be no
production if there were no demand. The pull system is contrasted against the, push system,
where the company pushes production to its highest potential, producing as much as possible,
often leading to excessive inventory of work-in-process (WIP) as well as finished goods.
2.5.1.3 Value Stream Mapping
A value stream is the set of activities that contributes value to the customer. Value stream
mapping is a method for showing the material and information flow in diagram form. The value
stream map captures process, material flows, and information flows of a given product family
and helps to identify waste in the system. Activities that do not contribute to value in the
customer’s eyes are waste and should be eliminated.
2.5.1.4Total Productive Maintenance (TPM)
Total Productive Maintenance (TPM) is a set of tools that gives workers a high degree of
autonomy and responsibility in improving productivity (Venkatesh, 2005). The goal of the TPM
program is to markedly increase production while, at the same time, increasing employee morale
and job satisfaction. Workers are trained to analyze information flow, processes such that they
can see waste, and solve problems at the root cause.
2.5.1.5 Poka-yoke
Poka-yoke refers to techniques that make it impossible to make mistakes (Rowlands, 2006).
Shingo, (1960) while working on the concept of zero quality control formulated the following
relationship: poka-yoke techniques to correct possible defects + source inspection to prevent
defects = zero quality control. Poka-yoke can be used wherever something can go wrong or an
18
error can be made in a manufacturing process (Montgomery, 2006). They go on to say that, it can
be used where there are Processing, Setup, Operations and Measurement errors. Poka yoke uses
very simple devices to prevent the production of defective products (DeGarmo, 2005). There are
typically three types:
1. Contact Type
2. Constant Number Type,
3. Performance Sequence Type.
2.5.1.6 Production Flow Balancing
Production Flow Balancing is a technique used to level out the workload of a production line
(Antony, 2001). It discourages rushing production in batches to meet deadlines, and encourages
producing a variety of products in small batches on a consistent basis. This eliminates
overburden of people and equipment. Workers have more time to focus on continuous
improvement. It also helps to reduce huge inventory buildup of one or a few particular products.
2.6 Lean Six Sigma

Lean Six Sigma is an approach combining and capitalizing the strengths of the Six Sigma and
Lean Manufacturing improvement programs. It has been claimed that companies that practice
either lean management or Six Sigma exclusively would reach a point of diminishing returns.
After the initial problem solving and process re-engineering efforts, systems show significant
improvement, but further improvements are not easily realized (Arnheiter, 2005).
19
Table 3 Combining key Lean and Sigma principles
Lean Principles Six Sigma Principles
There is an overriding philosophy that aims to Data-driven methodologies are emphasized.

eliminate non-value added operations Changes are based on quantitative analysis
rather than intuition.
Incentive systems encourage global Variation of quality characteristics is

optimization instead of local optimization minimized using structured methodologies
Decisions are made according to their relative A company-wide and highly structured
impact on the customer. education and training program is designed and
implemented.
2.7 Case Study Review

Application of Six-Sigma in Engine Casting Foundry Operations - Car
Manufacturing
The purpose of reviewing this case study is to gain insight on the approach and application of the
lean six-sigma methodology and apply this knowledge in solving the problems at SIRMET
foundry. With this purpose in mind, the following section will explore the key steps taken to
reduce the problem in the analyzed case study, the tools and techniques employed, and the
acquired knowledge that will be useful in performing the case study within SIRMET foundry.
In the reviewed case study, an automotive company eliminated an engine-overheating problem

using the DMAIC approach. The engine-overheating problem was caused by a water-jacket-
passage jamming problem in the engine cylinder head. The problem required immediate
attention because it caused high level of dissatisfaction among the company’s customers. Solving
this problem would not only bring about a significant impact on the company’s profit, but would
20
also increase customer satisfaction tremendously. The DMAIC methodology was effective
choice in solving the engine-overheating problem. At the end of the case study analysis, a
summary on what is learnt from the case study and how it can be linked to the author’s project
will be given.
2.7.1The Define Phase

In the define phase, the company defined the scope and goals of the improvement project,
translated customer requirements into actions to be taken, and developed a process plan to
initiate these actions. The project’s ultimate goal is to improve customer satisfaction and increase
the company’s profit. To achieve this goal, the company must solve the engine-overheating
problem. Since it was determined that the water-jacket-jamming defect was the cause of the
engine-overheating problem, it was chosen to be the performance measure parameter. The team
defined the goal statement of the project to be the reduction of water-jacket-jamming from 0.194
defects per unit (DPU) to 0.029 DPU. Achieving this goal would help the company achieve
substantial reduction in the cost of poor quality (COPQ).
After several brainstorming sessions, the two main parameters causing the water-jacket-passage-
jamming defects – namely, sand fusion and metal penetration during casting of the product. With
careful investigation, it was found that the root cause of sand fusion and metal penetration is the
porous core of the engine cylinder head. The depth of porous core was therefore identified as the
critical-to-quality characteristic.
2.7.1.1 Analysis of the Define Phase
Although this case study was an application of Six Sigma, not Lean Six Sigma, the five-why
analysis was effectively utilized– a lean tool – in the define phase to locate the root causes of the
problem and narrow the scope of the investigation. They started with the voice of the customer
and ended with some process parameters to which they should direct attention:
(1) The customer is complaining about the engine over-heating problem – why?
(2) The water-jacket-passage jamming problem causes overheating – why?
(3) Sand fusion and metal penetrations cause the defect of jamming – why?
21
(4) The porous core of the engine cylinder head allows sand fusion and metal penetrations –
why?
The last „why would be answered in the subsequent measure phase, where the cause and effect
analysis was constructed to find the process variables affecting the porous core. Although the
team successfully defined the performance measure parameter and critical-to-quality
characteristic of the improvement project, these tasks would have been done more effectively if
process mapping had been done early in the define phase, after the scope and goals have been
defined. The team chose to perform process mapping in the succeeding measure phase, but it
would have been valuable for them to perform it in the define phase. Process mapping would
give the team a clearer understanding of the cylinder-head core preparation. Although most team
members might have thorough knowledge of the process from experience, it would be beneficial
to map the process on paper, to ensure that every member had the same understanding of the
process, and any questions would be answered before the project continued. Process mapping
also ensured that all stages of the process were examined, and no problem areas were neglected.
It was crucial first step that must be done before any improvements can be done.
2.7.2The Measure Phase

In the measure phase, the team established the process capability or process performance by
selecting one or more product characteristics to monitor, mapping the process, taking
measurements and tracking results on process control cards. From the process map, the team
identified all value- and non value-added steps, key process inputs and outputs. Although this
task was performed in detail in the analysis phase, the team needed to narrow down the number
of potential causes so they could focus on measuring the significant parameters that caused the
porous core, and ultimately, the water-jacket-jamming defects and the engine overheating. The
critical-to-quality characteristic was set to be the depth of the porous core. To evaluate the causes
of the porous core, the team used cause and effect analysis. One of the tools used in cause and
effect analysis was a cause an effect diagram. The team identified categories such as
measurements, machines, materials, etc., and brainstormed to identify causes within each
22
category that led to the effect of the porous core. The cause and effect diagram constructed is
shown on Figure 9.
After further analysis, the team found that the potential parameters affecting the porous core
were:
1) Sand leakage
2) Blow pressure
3) The AFS number of sand
4) The gap in the core box
5) Bulk density of the density
6) Vent choking.
Figure 9 Cause and Effect diagram of Porous Core (Adapted from Tiwari, 2005)
2.7.2.1 Analysis of the Measure Phase

There was no explanation as to why the depth of the porous core was chosen as the CTQ to
monitor (we do not know why the depth affects the porosity of the core), so it was the impossible
to evaluate the validity of measuring the depth of the porous core as the response of varying the
23
process parameters listed above. One can only assume that the deeper the porous core was, the
more susceptible the water-jacket-passage was to sand fusion and metal penetration, leading to
passage jamming and engine overheating.
2.7.3 Analysis Phase

The analysis phase was started by gathering data from the process for analysis. Data was
collected randomly over the course of 36 days, during different shifts throughout the day. For
every data point, they were the depth of porous core (mm), sand leakage (g/blow), blow pressure
(kg/cm2), AFS number, bulk density (g/cm3), baume of wash (Be), fin thickness (mm) and vent
ratio – the depth of the porous core was the response, all of the others were previously
determined as the critical factors affecting the quality of the product.
The company used a Pareto chart to identify the locations at which water-passage-jamming
defects occurred most frequently. To reduce the defects at these locations, the team had to
enhance the process capability by reducing variability in the process. Regression analysis was
performed to find the parameters that have the most effect on the process. The study stated that
variables with P values less than 0.01 were statistically significant for further analysis; these
parameters were found to be sand leakage, bulk density and vent choking ratio.
2.7.3.1 Analysis of the Analysis Phase
To understand the causes for the poor process capability, it is first required to identify the
parameters that significantly affect the process. Regression analysis is used to pinpoint these
parameters. Referencing Probability & Statistics for Engineers & Scientists (Walpole, 2002).
In this case study of Overheating of Engine, the Yi values are the depth of porous core values
given in the data and the xi values are the measurements for the factor in consideration, e.g. sand
leakage.
2.7.4 Improve Phase

3
A 2 full factorial Design of Experiment (DoE) was carried out using the three process
parameters identified from the analyze phase to determine which combination of factor settings
24
was optimal for improving production quality. Each process parameter was studied at two levels-
please refer to Table 4 for factor levels.
Factor Low Level High Level

Sand Leakage 10g/blow 30g/blow
Bulk Density 1.78g/cm^3 1.95g/cm^3
1(Vent choking
Vent Choking 0 (no vent choking) exists)
Table 4 Factor levels for Factorial Design (Adapted from Antony, Kumar, Tiwari, 2005)
In the case study, the author found that only the main effects were statistically significant at 10
percent significance level – none of the interactions was statistically significant. It was concluded
that the optimum levels of process parameters to minimize the depth of the porous core were:
high level bulk density (1.95 g/cm3); low level vent choking level (No vent choking); low level
sand leakage (10 g/blow). Running trials at this optimal setting, the team found a significant
improvement on the process capability, including:
 The process capability value (Cpk) improved from 0.49 to 1.28.
 The average depth of porous core was reduced to 0.80mm from 1.21mm
 The process variability was significantly reduced
2.7.5. The Control Phase

Full value can only be obtained from the improvements if the optimized results are sustainable.
The company made a list of changes to ensure that improvements will remain long-term:
- Standardization of tasks in the process
- Constant monitoring and control of the improved process
- Conducting an extensive training program for the process-related personnel
- Visually displaying the process parameters on process sheets and control charts so that
operators could take preventive measure before problems occur
25
After implementing these changes, the company achieved sustainable improvements in the
process. The company used run charts to monitor the improved process and ensure the process
stays in control. All data points plotted on the run chart after the improvements are implemented
fall within the specification limits.
2.7.6 Summary and Knowledge Applicable to SIRMET Case Study

From reviewing and analyzing the case study of the application of Six Sigma to reduce the
engine-overheating problem, valuable knowledge was acquired and served to be useful when
applied to this case study of SIRMET foundry. The DMAIC methodology was recommended for
this case study for the same reasons it was recommended for the automotive company’s problem.
The use of a number of statistical tools gave a resourceful foundation with respect to some of the
statistical approaches and methods that would be applicable for this case study of SIRMET
foundry. Pareto charts were a strong indicator to the source and origin of problem area.
Hypothesis testing, in conjunction with the use of regression analysis, supported the validation of
test data and provided further support to the identification of a problem, with respect to
specifically the variability and co-linearity of the process. Moreover, the use of control charts
specified if a process or quality of production was in control or not. These statistical tools are
seen applicable to the SIRMET foundry case study, in that the application of them would provide
great usefulness to the analysis work for the case.
26
Chapter 3: Methodology
3.1 Introduction
Divided into five main phases, Define, Measure, Analyse, Improve and Control (DMAIC), offers
a well-defined and structured approach for the case study. A variety of Six Sigma and Lean
based tools and principles were employed in conjunction with the methodology, supplementing
the work of identifying the problem area raised earlier. Common research methods were also
employed and organized according to the DMAIC methodology. These included process, library
and internet research (document analysis), field research (observations, time and motion studies
and interviews) and laboratory research techniques (experiments).
Figure 10 Six Sigma Methodology
3.2 Define Phase

The aim in this phase was to define the significance, scope, limitations and objectives intended
by the project. To identify the main challenges for the casting process value stream maps were
used to map out the casting process of the mill balls. Value Stream Mapping (VSM) is a Lean
Production development tool that involves the analysis of the value streams of the process
(DrParajata, 2011). Activities in the process are classified as either value-added or non-value
added. The technique aims to eliminate all the wasteful steps such that a “lean” process flow can
27
be introduced. Figure 12 below shows the steps involved in coming up with the Value Stream
Map.
Identification of new critical path

and iterating the process
Mapping the future state for

critical paths
Identifying and analysing waste
Mapping the critical path
Identification of machine sharing
Selection of Product family
Figure 11 Steps in coming up with Value Stream Map

Using the above seven steps as guideline data is to be collected from the production reports for
the first quarter of 2014. This helps the author to identify the product that most significantly
affects the operation of SIRMET foundry in terms of production volume and selling revenue.
3.3 Measure Phase

The objective of the measure phase was to establish the reliability of internal data and what this
data suggest about casting process performance of mill balls. The process of establishing data
integrity is perhaps one of the most unique aspects of Lean Six Sigma. Historical process data of
mill balls of about 13 weeks was collected and analyzed .To validate the measurements the time
and motion studies (time value maps) was conducted on the casting process of mill balls. Cycle
28
time and Takt time analysis for mill balls was also conducted under this phase. The information
gathered was to create nominal group measurements and compute the process capability of the
current operations to know the sigma level at which the company is currently operating.
3.4 Analyze Phase

The preliminary data gathered led to a refined scope of the challenges faced by SIRMET
foundry. This led into the analysis stage in which the main thrust is to locate the root causes of
the problems. More data was gathered and thus possible sources that caused the major problems
were identified. An extensive statistical analysis to determine the parameters that contributed
most significantly to the process and product quality followed. Most statistical analysis was
conducted using the SPSS® and Microsoft Excel® software packages. The goal was to select
critical-to-quality parameters to consider for improvement in the subsequent Improve phase .A
number of SPC tools, including the Cause-and-Effect Diagrams, Analysis of Variance (ANOVA)
and Control Charts, were used throughout the analyze phase to identify, validate and determine
the effects of the potential causes to the problem.
3.5 Improve Phase

The main aim of this phase is to identify improvement recommendations, design the future state,
implement pilot projects, train and document the new processes. Recommendations from other
case studies gathered through research on the internet will be considered. Some other
recommendations came from interviews with the workforce, literature or textbook reviews for
universal best practices and innovation. Typically, will be done following some of these
activities; screening causes that affect the casting process of mill balls, identifying optimal
setting of process parameters, discovering variable relationship, and establishing revised
operating tolerances.
3.5.1 Processing Simulation

After suggesting improvements in the improve phase, simulation of the casting process using
Arena software was done. This is done so as to see if there are changes that have occurred after
applying lean six sigma in the casting process. Process simulation is a method of creating a
computer model of a process. The model allows the user to make changes to the simulated
29
process to mimic what would happen if changes were made to the real process. Simulation will
allow the author to collect statistics about any output of interest like cycle time, utilization levels,
defects generated, etc. With a developed model, the analyst can ask “what if “to consider
alternative ways to run a process.
3.6 Control Phase

Normally, in this phase, one develops a control plan to sustain improved quality. The suggestions
that are given in the improve phase will be implemented which aimed at re-building the
confidence levels in the operations. To consolidate the gains of the improvements, the new
processes will be re-documented i.e. new works instructions and procedures will be drafted as
per ISO9001:2008 standards. The author will also develop a Lean Six Sigma Arena based model
for casting operations at SIRMET FOUNDRY.
3.7 Summary
This chapter reviewed the methodology (DMAIC framework) that will be used by the author to
improve the quality of foundry products at SIRMET foundry. Results and analysis of data
collected in this chapter will be conducted in chapter 5 to improve the casting process and quality
of foundry products at SIRMET foundry.
30
4.0 CHAPTER 4: Company Audit

This chapter brings to light the current situation at SIRMET FOUNDRY with particular attention
to production processes of the mill balls and the effect of these processes to the quality of mill
balls produced. This chapter also outlines other quality management techniques currently being
used at SIRMET FOUNDRY.
4.1 SIRMET’s Operation Context-The Production/Process
Plant Flow sheet
Fettling Scrap yard

pump
shop
Cooling tower
Storeroom
Electricity mains
Milling Machine
Storeroom
F3
`
Gas
Molding and
F2 casting area
Lathe 1 Grinder
transformer
Control panel
Laboratory
Quality
F1 Lathe 2
Up
Core
making area
Lathe 3
making room
scale Office
HEAT
Pattern
149 sq. ft.
TREATMENT
Molding
FURNACE
boxes
Sand Sieve storage
mulling area
Shake out
Tools
room
machine
DRAWN BY:
GLYNN MPOFU
Rest
rooms
Figure 12 SIRMET Plant Layout

The company has three 1.5 tons induction furnaces, which went under care and maintenance
periodically. When a customer’s need is identified, the draftsman generates the part drawings.
The Pattern Maker then identifies the mechanical stability and establishes guidelines for
finalizing the design of the Pattern. Pattern making plays a major role in producing the desired
31
dimensions on a casting or cast part. Figure below shows the author in the pattern workshop
producing mill ball patterns.
Figure 13 Pattern Making at SIRMET

After the pattern is made moulding can start, before moulding the green sand is mixed with
bentonite, which acts as a binder. Binders produce cohesion between the sand grains and thus
give it the strength to retain its shape as mold cavity or core. After moulding melting of scrap
metal can start using coreless induction furnaces identified as F1, F2, and F3 the plant layout
shown above.
Figure 14 Tonne Induction Furnace
32
4.2 The Quality Department at SIRMET FOUNDY
Figure 15 Quantity Department Organogram

The flow of power in this department is as shown in Fig 17 above. The Managing Director
overseas the whole department so that production can be stopped if quality of a product is at
stake. Thus the department was set in a way that management would support all its actions. But,
often the managing director is unavailable due to business commitments. The department,
however, is depleted, as there is currently no Quality and Process Engineer and Quality
Superintendent.
Thus the chain of command stands as quality inspectors report to the quality controller then the
quality controller reports to the managing director. As part of the author’s observations, it was
observed that, due to the harsh economic times, employee morale has reduced dramatically. The
quality department was also observed to have low morale due to the unavailability of
management representative when the managing director is away on business. This dampened the
quality department’s efforts to improve on process.
4.3 Inspection Process at SIRMET FOUNDY

The incoming scrap metal (raw material) of SIRMET FOUNDRY is purchased from scrap
dealers and is inspected visually to determine the origin of the scrap, of which the method is
prone to human error. The metallurgist department then uses a charge calculation method to
33
determine different masses of grades of metals that constitute a charge of 2.4 tonnes.
According to O.P Khanna 2003, scrap metal which is purchased from scrap dealers (Obsolete,
old and postconsumer scrap) makes it difficult to control the chemical composition compared
to virgin steel – product manufacturing companies who sell new scrap (the ferrous scrap
generated in steel mills with known chemical and physical characteristics).
SIRMET FOUNDRY is first-cost sensitive, leading to the purchase of less expensive raw
materials that are more costly on a lifecycle basis because of lower quality. SIRMET
FOUNDRY buys the raw material from scrap dealers because the scrap metal is cheaper than the
new scrap. Scrap from scrap dealers cost $120 per tonne, whilst virgin steel costs $150, a
percentage difference of only 25% per tonne. The scrap metal offered by the scrap dealers
includes junked automobiles such as earth movers, followed by demolished steel structures
and worn out railroad cars. Because of the wide variety of chemical and physical
characteristics, obsolete scrap requires more preparation, such as sorting, detinning, and
dezincing (O.P Khanna 2003). Manufactured steel products have a wide range of physical
and chemical characteristics according to relative contents of the trace elements carbon,
chromium, cobalt, manganese, molybdenum, nickel,silicon, tungsten, and vanadium
(Powder Metallurgy,2003).
The Quality department at SIRMET FOUNDRY conducts fixed gauge and visual inspections.
From document review of inspection records, production reports, production orders, time sheets,
rework forms and warrant claim documents for the years 2011 and 2012 the inspection process
generated an increase in rework hours as shown in table below. The reworks hour to total
productive hour’s average for the period rose from 8% to 16%, which is double in a year. The
data reveals that of the total productive hours used for the casting of products at SIRMET
FOUNDRY an average percentage is attributed to the rework of those products due to
nonconformities on them. Rework percentages were calculated relative to the total productive
hours so as to note what percentage of productive time was spent on reworks per month. The
percentages were calculated using the following formula:
34
Rework % = Rework Hours × 100%
Total Productive Hours
Table 5 Rework hours vs. Total Productive hours
YEAR 2011 2012

TOTAL TOTAL
REWORK PRODUCTIVE REWORK% REWORK PRODUCTIVE REWORK %
MONTH HOURS HOURS 2011 HOURS HOURS FOR 2012
January 127 8132 2% 1315 9001 15%
February 312 8995 3% 1246 9856 13%
March 600 11468 5% 2116 9124 23%
April 257 13215 2% 1611 10213 16%
May 238 12531 2% 2521 11089 23%
June 1028 12985 8% 2146 17571.5 12%
July 987 13011 8% 1966 14987 13%
August 1363 13264 10% 2455 17477.25 14%
September 1652 13026 13% 2839 14934 19%
October 1801 13459 13% 2365 14659 16%
November 2398 14256 17% 2568 19548.3 13%
December 2517 12561 20% 2518 15854 16%
Average R% 8% Average R% 16%
4.4 Review of the goods returned records

From the goods returned documents, the researcher identified common defects that are
affecting the mill balls currently. Returned documents were also analysed to source for the data
of the frequency of occurrence of these failures and find out how much these failures are
affecting the production capacity of the company.
35
Table 6 Quantity, frequency and reasons for rejection of returned mill balls
4.5 Rework Level of mill balls at SIRMET

The rework level was found by the equation:
% reworks = [(Total no. of returns/reworks)/Total no. of Prod unit] x100

From table 6 above it can be shown that total number of reworks/returns for the six months
is 41.5 tones and the number of mill balls sold during the same months is 300 tones.
36
Using the percentage reworks formula above the percentage level of the reworks for the
period of six months of the year 2012 is 14%. The drop in sales has been due to the reworks
which have been returned and therefore becomes reworks. Also from table 6 it can be noted
that the anomalies in the percentage returns are also in the months June, July, August
and October, with October having the greatest percentage returns of 24. Reworks done are based
on the returned mill balls.
From, the returned goods record the equivalent monetary value of the reworks was also
reviewed so as to have an actual value of the amount of money being lost. Table 6 shows the
rejection percentage and value rejection for the six months period of the year 2012. The
anomalies were obtained in the months June, July, August and October, with October having the
maximum rework costs of $10 320. All the reworks are costing the company $35 690 for a six
month period of production. Hence it can be noted that there is a correlation between the
manufacturing process of the product and the level of its acceptance on the market.
According to (Hansen 2005), wide variations are always an indication of inadequate testing
and cheap input materials, which has a direct effect on the quality of the mill balls .
Therefore there is a need for a remedial action on the quality of raw materials purchased, the
inspection techniques used for testing the incoming raw materials and the manufacturing
processes employed. The remedial action would result in the company, reducing the cost
associated with reworks that cause a drop in sales and a small market share of mill balls.
4.6 Current Quality Strategy/Policy at SIRMET

SIRMET FOUNDRY has abandoned its process of implementing ISO 9001: 2008 Quality
Management System (QMS) to assist it in its production activities due to increasing costs of
auditing. SIRMET has been trying to implement ISO 9001:2008 since 2011 and has been audited
every year since so as to gain certification but has always failed at the end leading to another
audit the following year.
The QMS was supposed to improved SIRMET’s production effectiveness according to
International Standards thus SIRMET kept its systems approach in action, despite abandoned
ISO 9001 certification. ISO 9001:2001 systems are run throughout the organization’s
37
departments namely the Purchasing department, Quality Assurance, Production and Maintenance
despite none certification.
4.7 Quality Manual

SIRMET established a Quality manual, which includes the scope of the Quality Management
System (QMS) and details, which are applicable to SIRMET. The manual describes the QMS in
general and uses references to link the reader to:
 Document and data control, control of records, production planning, management review,
recruitment, training, disciplinary handling, enquiries handling, customer complaints,
product design control and review, purchasing process, verification of purchased
products, supply evaluation, goods received inspection, control of nonconforming
products, corrective action and preventive action.
 Work instructions
 Records or any other documentation related to the QMS
 Budget and organization structure

The manual is supposed to be updated periodically and new issues released on an annual basis
but this is all in vein as no quality audits are done at SIRMET as acknowledged by the operators,
supervisors and supervisors through interviews.
4.8 Conclusion
This chapter reviewed the current Quality policy at SIRMET FOUNDRY, the manufacturing
processes the policy covers, and what it has produced over the years. Also highlighted are the
Quality department at SIRMET and its chain of command and inspection process in use.
38
Chapter 5: Results and Analysis
5.0 Introduction
The following sections present results and analysis of the data gathered in the Define, Measure,
Improve and Control phase of the DMAIC methodology. The findings will be presented in the
form of tables, pie charts, Pareto charts, and cause and effect diagrams.
5.1 Define Phase

Product Quantity Revenue Analysis (PQ$) was conducted as the first part of the value stream
mapping process. The PQ$ analysis defines the scope for the project work by identifying the
specific product group that most significantly affects the operation of SIRMET foundry, in terms
of production volume and selling revenue. The data collected was raw so it was arranged into
defects vs. total products produced, product selling revenue and products produced per week.
Table 7 & 8 shows the arranged data collected for the first quarter of 2014. Analyses charts were
generated using Microsoft Excel (Please refer to Fig 16 and 17 for the analysis charts.)
39
Table 7 Products produced per week in 2014
TOTAL PRODUCTS PRODUCED PER WEEK (APRIL

2014)
PRODUCT
TYPE Week 1 Week 2 Week 3 Week 4
Product A
(Liners) 200 100 300 200
Product B
(Pumps) 600 400 150 100
Product C
(Mill balls) 1200 1500 1800 2000
Product D
(Brake discs) 350 200 400 600
Product E
(Railway glands) 450 150 200 240
Product quantity analysis

AV. weekly volume
2000
1500
1000
500
0
Product A Product B Product C Product D Product E
Product
Figure 16 Product-Quantity Analysis by Product Group
40
Product Defect Rate Analysis
Product Type Product E

Product D
Product C
Product B
Product A
0% 10% 20% 30% 40% 50%

Percentage
Figure 17 Product Defect Rate Analysis
Table 8 Product Revenue by Product Type
Product Revenue in $ for Revenue in $ for Revenue in $ for

February 2014 March 2014 April 2014
Product A (liners) $10 000

$5600 $9450
Product B $11600
(Pumps) $6400 $9000
Product C $13600
(Mill balls) $12600 $11890
Product D $9590
(Brake discs) $10789 $10678
Product E $8490
(Railway glands) $8350 $1500
41
Product Revenue Analysis, Feb 2014

$14,000
$12,000
$10,000
$8,000
$6,000
$4,000
$2,000
$0
Product B Product C Product D Product E
Figure 18 Product Revenue Analysis for Feb 2014
$14,000
Product Revenue Analysis,Mar 2014
$12,000
$10,000
$8,000
$6,000 $11,890
$10,678
$9,000
$4,000
$2,000
$1,500
$0
Figure 19 Product Revenue Analyses for March 2014
42
$14,000
Product Revenue Analysis,April 2014
$12,000
$10,000
$8,000
$6,000 $11,890
$10,678
$9,000
$4,000
$2,000
$1,500
$0
Figure 20 Product Revenue Analysis for April

From the analysis, Product C (mill balls) was found to be one of the highest volume and
revenue-generating product group. From Figure 17, one can see that it also had the highest defect
rate out of the 5 products. Current State Value Stream Map for Product C (mill balls) was
conducted. The Value Stream Map captured the entire manufacturing casting process, beginning
with the designing of the product and ending with the surface finishing of the product. The map
can be referred to in Figure 21. The Value Stream Map illustrated the physical movement of
inventory and information flow. The process cycle time (C/T) was computed and listed on the
map. The process map was developed based on the author’s timing results and observations
made on-site at SIRMET foundry manufacturing facility.
43
ORDER MANUFACTURING ORDER- Buyer Vendor

SYSTEM
Supplier Vendor
Av. 21000,
Product 3 (Mill
Production Schedule balls) units
Shipping Schedule
monthly
demand
Shipping
WAREHOUSE
1hr
2hrs
I
30mins
I
Drafting and Pattern Sand Mixing Charging & Pouring Demoulding

Designing Making and Moulding Melting
1hr 2hrs 5hrs 5hrs 5hrs 1hr 5hr 30mins 8hrs

BATCH 240 ` ` ` 1hr 1hr
Inspection Surface Heat Treating Mechanical

finishing Scrubbing
NVA TIME 38hrs
C/T= 75sec/unit 6hrs C/T= 75sec/unit 4hrs C/T= 75sec/unit 4hrs C/T= 30sec/unit
VA TIME 28hrs
5hrs 3hrs 3hrs 3hrs
Reworking
Current State Value Stream Map
4hrs C/T 10sec/unit 28/09/2014

3hrs DRAWN BY: GLYNN MPOFU
Figure 21 Casting State VSM for mill balls casting operations
5.1.1 Findings: Identification of Scope and Problem Area

A comprehensive understanding of the process was acquired upon completion of the Value
Stream Map. In the process of developing the map, a list of findings, major areas of focus and
concern were identified and summarized as follows:
1. The process was found to be unevenly distributed with respect to the cycle time of
process, ranging from 1hr-5hrs
2. There was high number of Work-In Progress level (30-360mins) in between steps
3. The non-value added time of the casting process was computed to be 38hrs, compared to
28hrs of value added operations
These findings narrowed the focus of the case study and helped to define and pinpoint the
challenges that the company faced. Based on the observations of the uneven process flow and the
44
high number of WIP level, SIRMET casting process was found to be inefficient, accounting for
the large proportion of time dominated by non-value added activities. A substantial level of
defect rate from the Product-Defect Rate Analysis also indicated that casting operation had much
room for improvement. The inefficiency of the process and the unacceptable quality of the
products imposed a negative effect on the SIRMET’s objectives in reducing cost and maximizing
financial return.
5.2 Measure Phase

It was identified from the Define phase that a large number of defects and process inefficiency
were the problem areas to focus on for the case study. To tackle the defect rate problem, 12
weeks of defect figures for Product C (mill balls) were collected in the Measure Phase. Table
9and 10 below shows the collected data of defect figures for Product C (mill balls).
Table 9 Total units produced by defects
WEEK No. for YEAR 2014 T0TAL UNITS DEFECTS

Week 17 4000 1500
Week 18 2400 1000
Week 19 3000 900
Week 20 2000 350
Week 21 3500 850
Week 22 3500 900
Week 23 2700 550
Week 24 4000 1700
Week 25 2500 800
Week 26 2000 550
Week 27 2800 300
Week 28 2000 600
Week 29 2600 1450
45
Defect Analysis
for mill balls
T0TAL UNITS DEFECTS
5000
4000
3000
Units
2000
1000
0
Week No.
Figure 22 Defect Analysis for 12 weeks of mill balls
Table 10 Defects origin of mill balls
Week No. for Defects due Defects due Defects due to Defects due to
Year 2014 to Pattern to Molding Sand Mixing Pouring
week 17 600 200 500 200
week18 400 100 300 200
week 19 500 50 200 150
week 20 200 30 70 50
week 21 500 50 200 100
week 22 600 100 200 0
week 23 400 50 80 20
week24 900 100 500 200
week25 500 20 200 80
week 26 400 10 100 40
week 27 270 0 20 10
week 28 200 100 0 0
week 29 400 300 400 350
46
Product Defect Origin

450
400
350
300
250
Units
200
150 Units
100
50
0
Defects due to Defects due to Defects due to Defects due to
Patterns Moulding Sand mixing Pouring
Defect Origin
Figure 23 Defect Origin Analyses
5.2.1 Cycle time and Takt time Analysis

The cycle time is the time it takes for one unit of product to go through the manufacturing
process. The Takt time is the rate of customer demand. Ideally, for a lean process, the cycle time
of each step should be equal to the Takt time – in other words, the product should be produced at
the rate that the customer is demanding the product. Producing faster than the Takt time creates
overproduction; while producing slower than the Takt time leads to bottlenecks. The Takt time
should be used to determine the rate of production.
Figure 24 below shows the cycle times of each step in the casting operation process. The Takt
time for Product C (mill balls) was found to be 240mins. On Figure 24, one can see the
discrepancies between the cycle times and Takttime for each step in the process. The earlier steps
cycle times were found to be much longer than the Takttime, while the later steps cycle times
were shorter than the Takttime. These discrepancies led to the build-up of WIP inventory.
47
Takt time = Available work time

Customer required volume
350
Casting Operations Cycle Time
300
Cycle Time (mins)
250
200
150 Series1
100
50
0
Casting Process
Figure 24 Cycle Time Analysis
5.2.2 Findings
The casting process of mill balls produced on average of 830 defects per week, accounting for
40% defect rate and Defects per Million Opportunities (DPMO) of 600-700. Relative to an
optimal 6-sigma quality standard of 3.4 Non-Conforming Parts per Million (NCCPM) and high
defect rate level gave an indication of the incapability and ineffectiveness of the SIRMET’s
operation. Based on Pareto chart, a significant portion of defect origin was composed of Pattern
and Sand Mixing defects.
5.3 Analyse Phase

The cause and effect diagram is a common SPC tool used to visually display potential causes.
The diagrams have been developed by the author based on observations at SIRMET foundry and
discussions with groups of experienced individuals from the company. The cause and effect
diagrams for Casting defects and Process Inefficiency are illustrated in Figure 25 and Figure 26
respectively In conducting the analysis, 5 main categories were created, including
48
Machine/Equipment, Raw Material, Methods, Measurements and Personnel. Generated under

each of the 5 categories were causes that contributed to the problems.
Casting Defects Cause and Effect Diagram
Machine Raw Material Methods
Supplier Process Materials Handling

Machine Capability
Capability
Unclear Operation Procedure
Maintenance
Specification limit Environment Tidiness
Equipment Storage Imbalance Flow
Casting Defects
Lot Variability
Workload/ Shift Scheduling
Operator Variability
Insufficient Training
Faulty measuring gauges
Inadequate Supervisor
Measurements Personnel
Figure 25 Cause and Effect diagram for Casting Defects
Raw Material Methods

Machine
Imbalance line Flow
Inflexible Changeover Delayed Feedback
Materials Handling
Communication to Unclear operating procedure
Batch Production Supplier
Production Scheduling
Procedure not updated
Process Inefficiency
(Non Value Added Activities, high WIP level)
Ineffective Problem
Non standardized Feedback
inspection standard
Minimal Communication
Task Unevenly Distributed
Imbalance Workload
Measurement Personnel
Figure 26 Cause and Effect Diagram for Process Inefficiency
49
The Cause-and-Effect Diagrams gave a useful preliminary diagnosis of the causes in the two
problem areas. In general, imbalanced line flow and uneven workload distribution were the most
notable causes that contributed to the high defect level and inefficiency of the process. The
inability to achieve a balanced and smooth production flow, as revealed by the huge cycle time
variation and high WIP level, led to other challenges in the process, like overburdening workers
and machines.
Ineffective material handling and storage of materials and work in progress were significant
causes that contributed to process problems such as blowhole defect. These causes are
considered as wastes in a lean process and are closely related to the manufacturing practices,
foundry layout design facility and process design. By applying Lean Principles, these wastes can
be significantly reduced.
5.3.1 Regression Analysis

Any potential root causes identified using Cause and Effect Diagrams above should be validated
through data. The root causes should be proven to affect the response using tools like regression,
and hypothesis testing. Regression analysis of total defects for the data below was carried out to
validate the Cause and Effect Diagrams above.
50
Table 11 Regression Analysis Table
Week Total Machine Average Average Work in Average Average

no defects capability machine worker's progress workload working
for year
2013 maintenance experience (INVENTORY) hours
week
17 600 4000 5 2 1050 5050 40
week18 400 2400 7 1 150 2550 45
week
19 500 3000 9 3 1650 4650 44
week
20 200 2000 10 1 1450 3450 35
week
21 500 3500 9 2 595 4095 49
week
22 600 3500 9 1 1065 4565 30
week
23 400 2700 7 3 2398 5098 38
week24 900 4000 8 2 97 4097 40
week25 500 2500 5 1 1455 3955 45
week
26 400 2000 5 1 3094 5094 50
week
27 270 2800 7 2 2842 5642 42
week
28 200 2000 9 2 2450 4450 30
week
29 400 2600 10 1 754 3354 39
Regressand in this analysis is total defects (TOTDEF). This regressand is regressed on the
following regressors: machine maintenance per work (MM), number of workers with at least
2years working experience (WE), work in progress (WIP), planned weekly production level
(PL), planned weekly working hours per worker (WH) and qualitative variable of inspection
(INSP). Inspection is treated as a dummy variable that takes value of 1 if there was inspection for
at least three days out of six days of the working work.
51
5.3.1.2 Regression equation to be estimated

Assumptions:
 Linearity in parameters i.e. αs

 No multi collinearlity i.e. regressors should not correlated themselves
 Homosledacity i.e. the variance of the error term (E) should be constant
 Error term should be normally distributed
The regression equation below regresses total defects (TOTDEF) on regressors: machine
maintenance (MM), working experience (WE), work in progress (WIP), production level (PL),
working hours (WH) and inspection (INSP).
TOTDEF = α0 +α1 INSP + α2 MM +α3 PL +α4 WE +α5 WH +α6 WIP + ε
α0 is the constant or intercept in the TOTDEF in the regression equation. α1, α2, α3, α4, α5 and α6
are slope coefficients of the respective regressors. These coefficients show the effect of
relationship between the regressors and regressand. Ε is the error term that captures omitted
variables and errors. The αs in the regression equation are estimated using the least ordinary
squares (OLS) method. Eviews software was used to estimate the regression equation. Using the
tabulated data above, the total defects regression equation was simulated and results summarized
below were obtained.
52
Dependent Variable: TOTDEF

Method: Least Squares
Date: 08/21/14 Time: 16:31
Sample: 1 13
Included observations: 13
Variable Coefficient Std. Error t-Statistic Prob.
C 199.5078 43.75975 4.559163 0.0039

INSP -11.91876 11.73621 -1.015554 0.0490
MM -6.559161 6.507562 -1.007929 0.0534
PL 0.042415 0.011349 3.737295 0.0097
WE -13.75424 5.249181 -2.620265 0.0396
WH 1.733182 0.592247 2.926450 0.0264
WIP 0.345603 0.197676 1.748329 0.0310
R-squared 0.942383
Figure 27 Simulation results from Eviews Software
5.3.1.3 Interpretation of results

To know the impact of the explanatory variables (regressors) on the explained variable
regressand (Total defects). Coefficients, probability values (Prob) and R-squared were used.
Coefficients of inspection, machine mantainence and working experience are negative. This
means that these variables are negatively realated with total defects.
TOTDEF= 199.5-11.92 INSP- 6.56 MM + 0.04 PL – 13.75 WE + 1.73 WH + 0.34 WIP
The increase in these variables causes a decrease in total defects. Thus, inspection reduces
defects by 11.92 units, machine mantainence reduces defects by 6.56 units, and workers
experience reduces defects by 13.75 units. On the other hand, PL, WH and WIP have positive
coefficients implying that they are positively related to Total Defects. Thus an increase in
production level by one unit increases total defects by 0.042 units, an increase in working hours
by one hour increases total defects by 1.73 units and an increase in work in progress by unit
causes in total defects by 0.35 units.
The probability value is calculated based on the t-statistic measures, statistical significance of
each regressors. Production Level is statistically significant in explaining total defects at 1%
level of significance. INSP, WE, WH, and WIP are all statistically significant in explaining total
53
defects at 5% level of significance. Machine maintenance is statistically significant in explaining

total defects at 10% level of significance. R-squared is a measure of goodness of fit. It shows
how well all the regressors explain a change in total defects. In this case R2=0.942383 that is
94.2% of a change in total defects is explained by the regressors in the regression equation. This
means my regression equation has the best fit.
5.3.2 Manufacturing Stability

A prerequisite for employing any kind of improvement or enhancement tool is a stable and in-
control process. For achieving this, the control chart is one of the most widely used tools in the
industry for providing an on-line process-monitoring mechanism. As a graphical display of
specific process parameters, the control chart shows the occurrences of process variability and
instability. The information from control charts is also useful for determining the capability of
the process for the hypothesis testing technique.
For this case study, the author has made use of a specific type of control chart called the p-chart
in evaluating the stability of the process. Constructed with the collected historical yield or defect
data for mill balls, the p-chart features a plot of the fraction nonconforming. The fraction
nonconforming refers to the ratio of the number of defectives to the total number of processed
units. Since production volume varied in each monitored time, the author has taken variable
sample size (50) into account in developing the p-chart.
5.3.3 p-Chart Analysis on Process Defects

The data table for the Process Defects and the respective p-chart are illustrated in Table 11 and
Figure 28. The author used SPSS® software to come up with the p chart in Figure 28.The data
points shown in Figure 28 corresponds to the 13 weeks which data was collected. The p-chart
reveals that the casting process at SIRMET foundry is in control as there are no data points that
fall above the UCL or below the LCL. This means that the process of producing mill balls is in
control and contains only common cause variation.
54
Table 12 Data Table for Process Defects
Sample
Fraction Standard
Nonconforming Deviation
# of ^ σp= [ ͞p (1-͞p ) LCL UCL
Sample Nonconforming pi = Di / ni ni]1/2 ͞p-3 σp ͞p + 3 σp
Week i Size ni Di
Wk 17 1 50 20 0.4 0.068423 0.168577 0.579115
Wk 18 2 50 19 0.38 0.068423 0.168577 0.579115
Wk 19 3 50 18 0.36 0.068423 0.168577 0.579115
Wk 20 4 50 20 0.4 0.068423 0.168577 0.579115
Wk 21 5 50 17 0.34 0.068423 0.168577 0.579115
Wk 22 6 50 16 0.32 0.068423 0.168577 0.579115
Wk 23 7 50 19 0.38 0.068423 0.168577 0.579115
Wk 24 8 50 20 0.4 0.068423 0.168577 0.579115
Wk 25 9 50 20 0.4 0.068423 0.168577 0.579115
Wk 26 10 50 20 0.4 0.068423 0.168577 0.579115
Wk 27 11 50 18 0.36 0.068423 0.168577 0.579115
Wk 28 12 50 19 0.38 0.068423 0.168577 0.579115
Wk 29 13 50 17 0.34 0.068423 0.168577 0.579115
Common causes are inherent variations that are attributed to such causes as humans, machines,
materials and methodology. In this case, study of SIRMET foundry, a common cause of
variation would be old equipment that has lost their accuracy over the years. Another source of
variation in this case study is difference in the quality of raw materials purchased from 2
supplier.
55
Figure 28 p Chart for sample fraction Nonconforming
5.3.4 Analysis of Variance of Pattern Makers

As recalled from the Lean Six Sigma definition, one of the tenets of the approach is to reduce
variations in processes. Variations of a process stem from various sources that include out-of-
control machines, operator errors, or defective raw materials, and the cumulative effects of all
these variations result in an unacceptable level of process performance. Substantial level of
casting defects due to Patterns were obtained from the measure phase. The author proposed that
the variability of the operators (pattern makers) in taking measurements and readings from
measuring, marking and layout tools such as Caliper and Steel rule is the most probable cause
that led to the Pattern defects. One-way ANOVA was used to validate this potential cause and to
evaluate the effects the variability had on the process and product. The analysis was done using
56
mill ball diameter measured by three operators (pattern makers) using a caliper. Operator
variability was checked at 0.05 level of significance to see whether operator variability
significantly affects the means for mill ball diameter. Measurements of mill ball diameter during
pattern making by 5 operators are shown in Table12 below.
Table 13 Mill ball diameter observation from 5 Operators
Observations
1 2 3 4 5 6 7 8 9 10
Operator 1 109.94 109.94 109.97 109.92 109.91 109.88 109.8 109.99 109.89 110.11
Operator2 109.92 109.89 110.06 109.91 109.92 110.04 110.01 110.05 110.08 110.04
Operator 3 109.93 110.02 109.88 109.9 109.95 110.19 110.12 110.13 110.2 110.15
Operator 4 110.14 110.13 110.15 110.17 110.1 110.07 110.05 110.05 110.06 110.15
Operator 5 109.99 109.98 110 110.02 110.01 109.78 109.95 109.82 109.8 109.8
The hypothesis tested is presented as:
H0: µ1=µ2=µ3
H1: µ1≠µ2≠µ3
If the null hypothesis is true, the levels of the factor of interest can be concluded as consistent
and changes in between levels have no effect on the mean response; whereas if the hypothesis is
rejected, it can be deduced that the factor has a significant effect on the response.
57
Table 13 Calculations Table
Sum n Sum2/n Σ(Sum2/n)

operator 1 1099.35 10 120857 120857.1
operator2 1099.92 10 120982.4 120982.4
operator3 1100.47 10 12103.4 121103.6
operator 4 1101.07 10 121103.4 121235.5
operator 5 1099.15 10 120813.1 120813.2
Totals 5499.96 50 604991.31 604991.8
To conduct ANOVA analysis it is important to calculate total variation. Total variation is defined
as sum of squares (SST). This (SST) is calculated by adding the sum of squares among groups
(SSFACTOR) and the sum of squares within groups (SSERROR). The equations used are
summarized as follows:
X = Measurement taken by each operator
SSTOTAL = Total Sum of Squares
N = 50
n = 10
Σ (Xi) 2/n = Sum of squares within groups
(ΣX)2N = Sum of squares among groups
DF = degrees of freedom
SSTOTAL= Σ (ΣX)2- (ΣX)2N
SSFACTOR=Σ(Xi)2/n - (ΣX)2N
58
SSERROR = SSTOTAL- SSFACTOR

Calc. F = MS Factor/MS Error (0.062992/0.00797066)
F Crit. = critical test value from the tables
Table 14 Anova Table
SS df MS Calc. F F Crit.
Factor 0.251688 4 0.062922 7.8941 3.76
Error 0.35868 45 0.00797066
Total 0.610368 49
ANOVA was conducted with the Microsoft excel software package and the results are presented
in table 13 and table 14 above. Since FCal=7.8941>FCrit=3.76 the null hypothesis H0: µ1=µ2=µ3
is rejected at 5% significance level. Thus, it can be concluded that there was a substantial
variability in between operator in taking measurements; the variability had an effect on the
measurement of the mill ball diameters. This result suggests that SIRMET foundry suffer from
high defect rate due to some operators who lack experience in taking measurements, based on
substantial variability shown in between measurements of the operators.
Figure 29 below reveal that Operator 1 and 3 are subject to a considerable degree of variability,
suggesting more training and standardizations may be needed for operators in order to maintain a
more consistent level of performance.
59
Figure 29 Box plot of Measurements by Operator
5.4 Improve Phase

The fourth phase of the DMAIC methodology is the Improve Phase. The Improve Phase consists
of the following activities: screening causes that affect the casting process, identifying optimal
setting of parameters, discovering variable relationship, and establishing revised operating
tolerances, (Banuelas, 2005).
5.4.1 Simulation as part of VSM

Through simulation and value stream mapping, managers can see the impacts before the
implementation and transform the organization into a lean one at minimal cost. In this phase, two
simulation models are built for two respective scenarios, push and pull (kanban) systems.
60
Production
Week forecast Schedule Hourly
Supplier Order Customer
Daily Fax
MRP
Daily Schedule
45 per hour
50%M 33% 17% per unit
Charging & DLT=3
Drafting Pattern Making
Melting
C/T=40sec C/T=30sec
C/O=26sec C/T=40sec
C/O=20 sec
27600 sec C/O=2sec
Uptime=100%
EPE=20min EPE=20min
EPE=20min
Rework=0% Scrap=0%
Scrap=100%
Surface Heat treatment Pouring Shipping

finishing
Inspection PUSH SYSTEM

VA=220sec
DRAWN BY: GLYNN 28/09/2014
MPOFU
Figure 30 Push System VSM

Model templates are explained and the key measurements such as lead times, throughput rates,
and value-added ratios are compared as well as evaluated. The effects of lean are clearly
demonstrated.
The first scenario or the “current state” is a MRP (Material Requirements Planning) based
production system shown in figure 30 above. There is a production control planning centre,
which generates the time schedule specifying the time (when) and the amount (how much) of
materials, parts and components that should be ordered or produced. The manufacturing
processes (the rectangles in Figure 30 above) consists of material purchasing from suppliers,
drafting, pattern making, moulding, charging, pouring, mechanical scrubing, inspection and
shipping to customers. A typical characteristic of this kind of production system is the inventory
storage points in between (the triangles in figure 30 above).
61
Weekly
Production Control
Forecast Hourly Order
Supplier Customer
Daily forecast
Hourly Order
Panel
Pattern Making
nel
& Charging
Pa
C/O
C/T
Panel
Drafting C/T=40sec 1S
C/O=40sec Pouring, Shipping
Total 1M Scrubing &
2S work=75sec Inspection
1L Staging
2M
C/T=40 FIFO
C/O=20sec 2L Takt =80sec
Uptime=100% PLT=16min+4.4min C/O=0 Rework
EPE=min
VAT= 265 sec Reduction
Scrap=0% Total work =
= 4.4min
Ratio = 21.5% 150sec
40sec 150sec
12min 75sec 4min
PULL SYSTEM
DRAWN BY: 28/09/2014
GLYNN MPOFU
Figure 31 Pull System VSM Figure 31
The second scenario or the “future state” is a kanban based system (Figure 32 above), also called
“lean production” system, which is based on the logic that nothing will be produced until it is
needed. When an order is placed by a customer, firstly the last workstation takes the parts needed
from the upstream supermarkets. The supermarket is a tool of the pull system that helps signal
demand for the product. In a supermarket, a fixed amount of raw material, work in process or
finished product is kept as a buffer to schedule variability or an incapable process. A
supermarket is typically located at the end of a production line (or the entrance of a U-shaped
flow line), (Rother and Shook 1999).
62
5.4.2 Simulation Templates

The Customer Template
A Customer is the start and the end of the supply chain. A customer order (demand) is the source
of the flow and an order fulfillment is the end of the flow. As the supply chain network shows
(Figure 30 & 31), the model starts with the order (an attribute about the product type is
mentioned) from customers which is converted by an order processing function (a planning step)
into final assembly, components fabricating or material purchasing authorization. The finished
order is then packaged and shipped to the customers.
The Processing Template
The processing template receives signals from customers or from downstream supermarkets to
assemble, ship the final products or replenish the taken parts. Each processing template has a
variable process time which is characterized by a triangle distribution function with minimum,
mode, and maximum process time in seconds.
The Supermarket Template
The supermarket template is a buffer (in Figure 31) between two processing or flow line
templates. It is ready to ship the parts or products when receiving a signal from downstream; a
kanban would then be released to upstream to replenish the supermarket. As shown in Figure 31,
the number in the signal card (kanban) represents the mill ball type (1=large, 2=medium and 3=
small).
Flow line Template
The flow line template is used in the special case of processing such as a manufacturing cell (a
multi-stages, close-coupled flow line). For example, in the second scenario (Figure 31), every 48
hour, there is a customer order arriving the company.
5.4.3 Key Measurements

The definitions of key measurements are given as follows (Hoop an Spearman 1996; Rother and
Shook 1999):
Throughput (TH)
The average output of a production process per unit time
(e.g. products per hour).
63
Work in Process (WIP)

The inventory between the start and end points of a product routing.
Lead Time
The total time a customer must wait to receive a product after placing an order. When a
scheduling and production system are running at or below capacity, lead time and throughput
time are the same. When demand exceeds the capacity of a system, there is additional waiting
time before the start of scheduling and production, and lead time exceeds throughput time.
Utilisation
Fraction of time a workstation is not idle for lack of materials(If a workstation increases
utilization without making other changes, average WIP and lead time will increase in a highly
nonlinear fashion – bottleneck).
5.4.4 Simulation Scenes

As the animation shown in Figure 32, which represents a push production system, we can see
that there are batches and queues, scrap and rework, long lead times and low value-added ratios,
etc. Compared to Figure 33, which represents a pull-kanban system, the batches and queues are
replaced by supermarkets and single-piece-flow, there are no scrap and rework due to the flow
line design, and the consequences are shorter lead times and higher value-added ratios.
64
Figure 32 Push System Simulation
65
Figure 33 Pull System Simulation
66
5.4.5 Results
Figure 34 Push System Simulation Results
67
68
69
Figure 37 Pull System Simulation Results
70
Figure 38 Pull System Simulation Results
Average values from the output data were taken and summarized in table 15 below. 8-hours is a
replication run (a working day) and there is a 14 minutes warm-up time considered in the second
scenario for preparing the fixed amount of raw material or work in process in each supermarket.
The author assumed that there is no waste time during any processing stage and define the value
added time as the sum of process time. As seen from table 15, the lean production system
71
Table 15 Simulation Output data
Key Measurements Scenario 1 Push Scenario 2 (Pull) P-Value

Throughput (mill balls per hr) 45 45
Lead Time (hours) 1.39 0.31 0
WIP (# of mill balls) 60 14 0
Value-Added Ratio 5.9 25.9 1
Utilisation (%)
Drafting Operator 51 74.9 1
Pattern Making Operator 74.2 78.6 1
Moulding Operator 53 69.6 1
Mechanical Scrubbing Operator 60.3 49.8 0
Machining Operator 87.9 74.8 0
Heat treatment Operator 96.2 87.3 0
Inspection Operator 27.3 24.9 0
Average [Value-Added Time/Lead
Time]
High Utilization-Bottleneck
(Scenario 2) improves lead time by 78%, increases value added ratio from 5.9 to 25.9, reduces
WIP and relieves the bottleneck between workstations. Lead time was taken as an example to
explain the p-value in the table. The testing hypotheses are as follows:
Where,
µ1: average lead time of push system
µ2: average lead time of pull system
P-Value
72
= Prob (Z> 30.46581) = 0 < α

Where,
X: sample average lead time of push system
Y: sample average lead time of pull system
S12: the lead time variance of push system
S22: the lead time variance of pull system
n1: the sample number of push system
n2: the sample number of pull system
α: the significant level (0.05)
The lead time (in hours) of 0.31 for pull system is likely less than the lead time of 1.39 for push
system at a p-value equal to 0. It means that we reject the null hypothesis H0 and accept the
alternative hypothesis H1— the average lead time of pull system is less than that of push system
and conclude that the pull approach has shorter lead times and is better than the push approach.
73
5.5 Control Phase

The last phase of the DMAIC is the Control phase. Normally, in the phase, one develops a
control plan to sustain quality. However, in this case it is different. The simulations done in the
improve phase were based on lean six sigma, which rebuilds SIRMET culture by introducing a
lean culture. The lean culture is promoted and lived out by the managers of the company.
Although it may take time to lay the foundation for transforming the organization culture, once
the transformation happens, the effects are everlasting. Because of this, if SIRMET is successful
in implementing all the lean principles and transforming to a lean enterprise, there is nothing left
to do in the control phase, as the success will sustain itself.
74
Chapter 6: Conclusions and Recommendations
6.1 Introduction
This chapter covers recommendations and conclusion of this research. The recommendations and
conclusion are drawn from the findings and results highlighted in chapter five, guided by
research aim and objectives.
6.2 Conclusions
This thesis project has proven to be an extremely rewarding experience. Three objectives that
were outlined in the first chapter were accomplished, which were:
1. Using the DMAIC framework in solving the quality problem at SIRMET foundry.
2. To eliminate batch and queue push production system in the casting of mill balls.
3. To develop a lean six sigma Arena based simulation model with less waste for the casting
process of mill balls at SIRMET FOUNDRY.
6.2.1 Cost benefit Analysis

Cost Benefit Distribution
25000000
20000000
15000000
10000000
CASH FLOW/$
5000000
0
-5000000
-10000000
-15000000
-20000000
-25000000
2012 2013 2014 2015 2016
Revenue -19919940 -19919940 -19919940 19919940 19919940
OPEX 0 0 0 103435.5 1435.5
Figure 3: Cost benefit analysis of proposed solution
75
The author was very pleased that he was able to apply his knowledge to improve the
manufacturing process at SIRMET foundry. The author has gained tremendous knowledge on
the Six Sigma statistical tools, Lean Management principles, and the benefits of Lean Six Sigma.
The research work was a big success in the opinion of the researcher and any civilized reader.
This stern conclusion can be made since the aim of the investigation has been undoubtedly
achieved. The proposed solution managed to bring down the 40% defect rate to less than 10%.
The total defect cost which was in excess of USD19 000 /annum can now be retained in the
business at a capital cost of only USD10 000 and an annual operating cost of USD1435.5. The
payback period is 1 year.
6.3 Main Findings

 The employees at SIRMET foundry especially the Pattern makers lacks accuracy in taking
measurements and this has caused the company to suffer from high defect rate due to
Patterns. It was observed that constructing or making of patterns is a science and an art,
which is more concerned with the accuracy of dimensions to produce the desired product.
 Most foundries use the traditional manufacturing systems where production schedule is
planned according to demand and production volume can fluctuate dramatically.
 SIRMET foundry practice push production where it places emphasis on producing huge
volumes of products to meet high demand. This results in many wastes such as defects,
waiting, unnecessary transportation and over processing.
 Most foundries overburden people and equipment. Overburdening people causes safety and
quality problems, while overburdening equipment results in breakdowns and high defect rate.
6.4 Recommendations
 The lean Arena based model in chapter five if followed through is a novel tool for
transforming SIRMET foundry into a lean organization to solve the quality problem at
the company.
 SIRMET foundry should use middle managers as change agents in transforming the
company into lean organization.
76
 Understanding processes is essential before attempt is made to improve them. Thus,

audits should be continuously done to update knowledge of a process and hint if it is to
be improved.
 Ageing machinery should be replaced or at least upgraded or maintained to levels that are
compatible with today’s competitive environment so that quality rates are always high.
77
References
The following lists the journal articles that the author reviewed, articles in bold are the ones for
the author’s analytical published case studies:
1. Antony. “Improving the manufacturing process quality using design of experiments: a
case study”. International Journal of Operations & Production Management, Vol. 21
(2001): 812-822
2. Antony, Kumar, Tiwari. “An Application of Six Sigma to Reduce Waste”. Quality and
Reliability Engineering International, Vol. 21 (2005): 553-570
3. Antony, Kumar, Tiwari. “An Application of Six Sigma Methodology to reduce the
engine-overheating problem in an automotive company”. Proc. ImechE, Vol. 219
(2005): 633-646.
4. Arnheiter, Maleyeff. “The integration of lean management and Six Sigma’. The TQM
Magazine, Vol.27 (2005): 5-18
5. Dutta, Regani. “Taichi Ohno and the Toyota Production System”. ICFAI Center for
Management Research, (2004): 6-7.
6. Furter, Elshennawy. “Implementation of TQM and Lean Six Sigma Tools in Local
Government: a Framework and a Case Study”. Total Quality Management, Vol. 16
(2005): 1179-1191
7. Kumar, Antony, Sigh, Tiwari, Perry. “Implementing the Lean Six Sigma framework in an
Indian SME: a case study”. Production Planning and Control ,Vol.17 (2006): 407-423
8. Fieler, Loverro. “ Defects Tail Off with Six-Sigma Manufacturing”.IEE,(1991): 18-48
9. Buell, Turnipseed, Texaco. “Application of Lean Six Sigma in Oilfield Operations”.
Society of Petroleum Engineers Inc. (2003).
10. Koch, Yang Gu “Design for six sigma through robust optimization”. Journal of
Structural and Multidisciplinary Optimization, Vol. 26 (2004): 235-248
11. Cheng. “Six Sigma business strategy in Taiwan: an empirical study”. International
Journal of Six Sigma and Competitive Advantage, Vol. 3 (2007): 1-12
78
12. Antony, Bunuelas. “Key ingredients for the effective implementation of Six Sigma
program”. Measuring Business Excellence, Vol. 6 (2002): 20-27
13. Gijo, Rao. “Six Sigma implementation Hurdles and more Hurdles”. Total Quality
Management, Vol. 16 (2005): 721-725
14. Maleyeff, Kaminsky. “Six Sigma and introductory statistics education”. Education &
Training, Vol.44 (2002): 82-89
15. McManus. “The trouble with teams”. Industrial Engineering, Vol. 39 (2007): 20-22
Lists of books reviewed:

1. Evans, Lindsay. (2005). The Management and Control of Quality, 6th Edition.
2. George, Maxey, Rowlands (2004). The Lean Six Sigma Pocket Tool book: A Quick
Reference Guide to 100 Tools for Improving Quality and Speed. 1st Edition. McGraw-Hill
3. Ohno (1988). Toyota Production System. Cambridge, MA: Productivity Press
4. Walpole, Myers, Ye. (2002). Probability & Statistics for Engineers & Scientists. 7th
Edition. Wiley
Website referenced:
1. Related Process Models – The Six-Sigma Methodology. Retrieved October 15, 2013,
from http://www.itil-itsm-world.com/sigma.htm
2. DTI Europe. Retrieved April 25, 2013 from http:// www.dti.gov.uk
79
Appendix A: Interview questions

INTERVIEWEES: Patternmakers, Supervisors, foreman, Production Engineer, Quality
department personnel (except Question 6), Sales manager and Purchasing Manager.
1. How do you view the Quality Inspection process?
2. What Quality problems do you encounter?
3. What are the causes of these quality discrepancies?
4. How do you think the problems can be eliminated?
5. Do you work together with the Quality Department in harmony?
6. Who do you think is responsible for quality?
7. What are the views of customers towards SIRMET FOUNDRY products in terms
quality?
8. What is SIRMET FOUNDRY’S market share in terms of quality products?
9. How do reworks and other quality related issues after production?
10. What is your view towards Lean Six Sigma?
11. What Quality improvement tool are you currently using?
12. At what sigma level are you operating?
13. Do you have key perfomance indicators?
14. Do you have standard worksheets?
15. How is quality affecting your sales?
16. What was your defect rate for the past 8 months?
17. Which product do you produce in larger volume compared to others?
18. Are you Lean Six Sigma certified, if yes which belt do you have?
80
Appendix B: Data for Reviewed Case Study- Analysis Phase
81
Data for 23 Full Factorial Designs

Vent
Bulk Choking
Sand Leakage Density Ratio Depth ( Depth
(g/blow) (g/cc) mm) (mm)
10 1.78 0 0.75 0.65
10 1.95 0 0.6 0.6
10 1.78 1 0.8 1
10 1.95 1 0.85 0.75
30 1.78 0 0.9 1
30 1.95 0 0.8 0.9
30 1.78 1 0.9 1.1
30 1.95 1 0.9 1
82

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Application of Lean Six Sigma to reduce casting defects at SIRMET

(A case study: SIRMET FOUNDRY)

Supervisor: Mr. R. Chiweshe

Name (s) : Mpofu Glynn

Department of Production Engineering & Technology

School of Engineering Sciences & Technology

The Chinhoyi University of Technology

Private Bag 7724

3.6 Control Phase .......................................................................................................................... 30

6.4 Recommendations ................................................................................................................... 76

 To minimize non-value added activities in the casting process of mill balls.

1.6 Chapter Summary

CHAPTER 2: Literature Review

2.2 The Foundry Process

Sandblasting & grit Removal Inspection Delivery of Products to Customers

Figure 1 SIRMET foundry process flow sheet

2.2.1 Process Description

2.4 Six Sigma Defined

Figure 2 Sigma variation (Adopted from Shankar2003)

2.4.1 The DMAIC Cycle

Table 1The DMAIC Methodology and Steps Included in each Phase

Phase Steps Included

2. Measure  Map process and identify process inputs and outputs

2.4.2 Six Sigma Tools and Techniques

2.4.2.1 Run Chart (Check Sheet)

Figure 3 Check sheet (Adapted from Six Sigma Handbook, 2012)

Figure 4 Histogram (Adapted from Sion, 2005)

2.4.2.3 Pareto Diagram

Figure 5 Pareto Diagram (Adapted from Rowlands and Kastle, 2007)

2.4.2.4 Cause and Effect Diagram

Figure 7 Scatter diagrams (Adapted from Pyzdek Guide to SPC, 2000)

2.4.2.6 Control Chart

Figure 8 Control Chart (Sharma, 1998)

2.5 Lean Manufacturing

Table 2 Seven Wastes, Lee (2004)

 Continuous improvement: continuously reduce costs, improve quality, increase

 Flexibility: systems can react to changing demands to produce a greater diversity of

 Supplier relationship management: a long-term relationship with suppliers is created and

2.5.1 Lean Tools and Techniques

2.5.1.3 Just-in-Time (JIT) Production

2.6 Lean Six Sigma

Table 3 Combining key Lean and Sigma principles

Lean Principles Six Sigma Principles

There is an overriding philosophy that aims to Data-driven methodologies are emphasized.

Incentive systems encourage global Variation of quality characteristics is

2.7 Case Study Review

In the reviewed case study, an automotive company eliminated an engine-overheating problem

2.7.1The Define Phase

(2) The water-jacket-passage jamming problem causes overheating – why?

2.7.2The Measure Phase

2.7.2.1 Analysis of the Measure Phase

2.7.3 Analysis Phase

2.7.4 Improve Phase

Factor Low Level High Level

 The process variability was significantly reduced

2.7.5. The Control Phase

- Constant monitoring and control of the improved process

- Conducting an extensive training program for the process-related personnel

2.7.6 Summary and Knowledge Applicable to SIRMET Case Study