Professional Documents
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#2 CROP Secretariats Engagement Session FY2023
#2 CROP Secretariats Engagement Session FY2023
25 OCTOBER 2023
COST REDUCTION & OPTIMISATION PROGRAMME (CROP)
#2 FY2023 SECRETARIAT ENGAGEMENT
25 OCTOBER 2023
1,221 Registered
Initiatives
Expected Savings RM 91.52mil
976 Initiatives in
Realisation Stage
YTD Realised Savings RM 55.22mil RM 36.30mil (40%)
Savings
10% RM 5.43mil Contribution RM 0.93mil 2%
88% RM 48.86mil 12% RM 6.36mil No. of
4% 45 / 1,221 Initiatives 36 / 1,221 3%
No. of
43% 9 / 21 Companies 10 / 21 48%
Conventional CROP
FY2023 YTD CROP Achievement
Various theme-based initiatives by participating
companies clustered into few common activities…
25 OCTOBER 2023
KAIZEN PORTAL
Motosikal Dan Enjin Nasional Sdn. Bhd.
MODENAS
KAIZEN PORTAL
Presenter: Mohd Yazid Abdul Gafar @ Ahmad
#2 CROP SECRETARIAT
ENGAGEMENT SESSION FY2023
Date: 25th October 2023 (Wednesday)
AGENDA 1. BACKGROUND
2. PROBLEM STATEMENT
3. COUNTERMEASURE / IMPROVEMENT
5. BENEFITS
9
1. BACKGROUND
3. COUNTERMEASURE / IMPROVEMENT
5. BENEFITS
No Remark
Time consuming for HMS staff to update accumulate number of projects for each
2
user.
Employees contact HMS for details during yearly PMS (Performance Monitoring
3
System) evaluation.
HMS personnel manually update management team on the Kaizen's activity and cost
4
saving.
11
PROBLEM STATEMENT
No Remark
Time consuming for HMS staff to update accumulate number of projects for
2
each user.
Employees contact HMS for details during yearly PMS (Performance Monitoring
3
System) evaluation.
HMS personnel manually update management team on the Kaizen's activity and cost
4
saving.
12
PROBLEM STATEMENT
No Remark
Time consuming for HMS staff to update accumulate number of projects for each
2
user.
3 Employees contact HMS for details during yearly PMS (Performance Monitoring
System) evaluation.
HMS personnel manually update management team on the Kaizen's activity and cost
4
saving.
13
PROBLEM STATEMENT
No Remark
Time consuming for HMS staff to update accumulate number of projects for each
2
user.
Employees contact HMS for details during yearly PMS (Performance Monitoring System)
3
evaluation.
14
1. BACKGROUND
2. PROBLEM STATEMENT
5. BENEFITS
2. The portal holds the information of target and actual for each
employee.
16
COUNTERMEASURE / IMPROVEMENT
2. The portal holds the information of target and actual for each
employee.
17
COUNTERMEASURE / IMPROVEMENT
2. The portal holds the information of target and actual for each
employee.
18
1. BACKGROUND
2. PROBLEM STATEMENT
3. COUNTERMEASURE / IMPROVEMENT
5. BENEFITS
20
INTO THE ‘KAIZEN PORTAL’
21
INTO THE ‘KAIZEN PORTAL’
3
The information can be viewed by
employee, date, department as well as
group.
2
22
INTO THE ‘KAIZEN PORTAL’
23
INTO THE ‘KAIZEN PORTAL’
List of group
members
Improvement type
1. Safety
2. Cost
3. Quality
4. Time
5. Delivery
25
1. BACKGROUND
2. PROBLEM STATEMENT
3. COUNTERMEASURE / IMPROVEMENT
AGENDA 5. BENEFITS
No Remark
Reduce time for HMS personnel to compile the data on kaizen activities.
1
Reduce time for HMS personnel as well as employees on the retrieving data
2
(during PMS, etc.).
The portal can be accessed anywhere (as long as has internet connection).
4
27
BENEFITS
No Remark
Reduce time for HMS personnel to compile the data on kaizen activities.
1
The portal can be accessed anywhere (as long as has internet connection).
4
28
BENEFITS
No Remark
Reduce time for HMS personnel to compile the data on kaizen activities.
1
Reduce time for HMS personnel as well as employees on the retrieving data
2
(during PMS, etc.).
The portal can be accessed anywhere (as long as has internet connection).
4
29
BENEFITS
No Remark
Reduce time for HMS personnel to compile the data on kaizen activities.
1
Reduce time for HMS personnel as well as employees on the retrieving data
2
(during PMS, etc.).
30
1. BACKGROUND
2. PROBLEM STATEMENT
3. COUNTERMEASURE / IMPROVEMENT
5. BENEFITS
•CROP [AMP •CROP [RM7.6mil •CROP [RM8.6mil •CROP [RM9.6mil •CROP [RM10.6mil
RM5.4mil] from 1.2% of COGS from 1.1% of COGS from 1.1% of COGS from 1.1% of COGS
•Lean six sigma projection} projection] projection] projection]
Green Belt •Lean six sigma •Lean six sigma •Lean six sigma •Lean six sigma
certification training Green Belt Green Belt & Black Green Belt & Black Green Belt & Black
[20 participants/group Certification [20 Belt Certifications Belt Certifications Belt [(20
@ 20%]. GM23 participants/ group @ [(20 participants/ [(20 participants/ participants/group @
agreed to defer next YTD 40%] . group @ YTD 60% ) group @ YTD 80%) YTD 100%) & (BB 4
year . •Factory 7S & (BB 4 people)] & (BB 4 people @ people @ YTD 12%)]
•Factory 6S Improvement Genba •Factory 7S YTD 8%)]. •Factory 7S
Improvement Genba [18 times a year] Improvement Genba •Factory 7S improvement Genba
[18 times a year] •Go-Kaizen & CROP [monthly] Improvement Genba [quarterly]
•Go-Kaizen & CROP activities [New •Go-Kaizen & CROP [monthly] •Go-Kaizen & CROP
activities [New Participation Rate: activities [New •Go-Kaizen & CROP activities [New
Participation Rate: x%] Participation Rate: activities [New Participation Rate:
x%] •Lean manufacturing x%] Participation Rate: x%]
•5s Visual cost savings •Lean manufacturing x%] •Lean manufacturing
management [RM0.8mil] cost savings •Lean manufacturing cost savings
[Develop work •5s auditor training [4 [RM1.6mil] cost savings [RM3.6mil]
standards & Audit people & in week 10] •5S workplace audit [RM2.65mil] •5S workplace audit
checklist] •5s workplace audit [quarterly] •5S workplace audit [Biannual]
•HMS Dojo. [quarterly] •Digital shopfloor [Biannual] •Digital shopfloor
•5s manuals boards [Block B & •Digital shopfloor boards [Main office &
[Launching in W13] Block C] boards [Block A and Canteen].
•Inhouse Convention •Inhouse Convention R&D] •Digitization yield.
[W41 of each year] [W41 of each year] •Inhouse Convention •Inhouse Convention
[W41 of each year] [W41 of each year]
32
THANK YOU
MOTOSIKAL DAN ENJIN NASIONAL SDN. BHD | www.modenas.my
33
COST REDUCTION & OPTIMISATION PROGRAMME (CROP)
#2 FY2023 SECRETARIAT ENGAGEMENT
25 OCTOBER 2023
1 2 3 4 5
INTRODUCTION OVERALL SUMMARY TOP 3 INITIATIVES MANPOWER CHALLENGES &
IN-HOUSE (PROJECT OPTIMIZATION OPTIMIZATION
CAPABIILTIES BACKGROUND, STRATEGIES &
REGISTERED IN CROP HOW WE DO IT, FACILITIES
& SUCCESS STORY)
CONTRIBUTION
TOWARD
COMPANY’S SAVINGS
1 2 3
OUR
BENEFITS
INTRODUCTION OBJECTIVE
CAPABILITIES Cost-effective
High quality
Capable in-house
control
To deliver MR AV8 repairs and
repair and maintenance.
Maintain
maintenance confidentiality and
within stipulated Equipped with
security.
time special facilities
and equipments.
Develop new skills
and expertise.
Certified staff with
experiences. More flexibility to
customize repair.
% from total CROP savings
OVERALL SUMMARY for that respective year
98.4%
IN-HOUSE CAPABILITIES 2021
RM1,113,470
CONTRIBUTION
2021-2023 AT A GLANCE TOWARDS
COMPANY’S
This dashboard is to provide a summary of in-house capabilities 73.6%
2022
SAVINGS
registered in CROP from year 2021 to 2023.
RM2,691,120
Total savings for
in-house capabilities
RM457,928
SUMMARY OF IN-HOUSE CAPABILITIES
2023
78.1%
RM1,119,722
12 12 22 900000
800000
856706 19
20
2023 SO FAR
700000 Major contributor to the
15 CROP savings for 2023 is
600000
13 from MR in-house repair.
500000
10
2021 2022 2023 400000
8 354020
Initiatives to resolve long lead time and high repair Initiatives to deliver 300000
cost by OEMs for critical AV8 warranty claims AV8 Maintenance 200000 222501 5 CROP
and Repair parts and 100000 No of Initiatives
3-Tonne GS Cargo to 62341
1
the user according to
0 0
Q1 2023 Q2 2023 Q3 2023 Q4 2023
contract obligation
OVERALL SUMMARY
IN-HOUSE CAPABILITIES 22
2023
1. ECU Suspension repair
12 12
2. ECU Lighting Powerpack repair
3. ECU Drivetrain repair
4. Driver Work Station (DWS) repair
5. Maintenance Repair Binnacle repair
2021 2022 6. Upgrade cabin to filing storage
7. 3TGSC towing hook modification
1. HF TRC 3700 repair 1. GID-3 Sieve Pack repair
8. 3TGSC spare tire bracket modification
2. ALA 172 repair 2. Driver Work Station (DWS) Display repair
9. 3TGSC lifting attachment special tool fabrication
3. VHF 9210 repair 3. Direction Lamp repair
10. 3TGSC sideboard support special tool fabrication
4. Main Weapon Controller (MWC) repair 4. GID-3 Motor Pump repair
11. Painting job for DEFTECH Shah Alam
5. Gun Drive Controller (GDC) repair 5. W44 Harness fabrication and repair
12. 3TGSC jigs to mark and allocate canopy hook on the
6. Gun Drive Unit (GDU) repair 6. Cotton rags fabrication
designed area special tool fabrication
7. Gunner Day Sight (GDS) repair 7. Wooden box for schedule waste fabrication
13. 3TGSC special tool to hold seat frame to desired
8. GID-3 Sieve Pack Refurbishment 8. Container for chemical spillage fabrication
measurement fabrication
9. Warranty Improvement Project: Local supply desiccant 9. Electrical and Pneumatic cage fabrication
14. 3TGSC fixture to clamp trailer coupler in milling table
and o’ring for Gunner Day Sight with LRF maintenance 10. KAIZEN fabrication
fabrication
10. Minor maintenance of air-conditioning in office at Batu 11. AV8 Digital painting
15. 3TGSC fixture to ease the installation of adapter
Berendam, Melaka 12. Motor vehicle basic servicing
bracket on bumper fabrication
11. Gutter repair
16. 3TGSC fixture to weld the kangaroo bar and legs
12. Periscope rework
fabrication
17. 3TGSC jig for marking the location of gussets
fabrication
18. 3TGSC jig to allocate tool box brackets fabrication
19. 3TGSC jig to allocate jerry can box bracket fabrication
20. 3TGSC lifter fixture to lift cargo body onto vehicle
fabrication
21. DAV utility room refurbishment
22. Safety Signage and Signboard fabrication
TOP 3 INITIATIVES
DRIVER WORKSTATION
Total Cost Savings: RM 156,486.00
Quantity: 3 units
% of cost reduction per unit: 81%
BINNACLE
Total Cost Savings: RM 105,252.00
Quantity: 2 units
% of cost reduction per unit: 78%
GID-3
Total Cost Savings: RM 26,020.00
Quantity: 2 units
% of cost reduction per unit: 50%
INITIAL INSPECTION
Inspect the electronic equipment to verify the
functional faulty at Army campsite.
FUNCTIONAL TEST
Test the repaired electronic equipment by using
test bench and lab equipment.
VEHICLE TEST
Verify the functionality of electronic
equipment in Army vehicle at campsite.
DRIVER WORK STATION (DWS)
81
COST
To find cost-effective solution for ▪ Original Equipment Manufacturer (OEM) REDUCTION
electronic component repair AV-8 Driver
Work Station (DWS).
Lead Time: 8-12 weeks.
▪ Long repair period affecting customer %
delivery lead time.
▪ Based on OEM quotes, RM 64,156.28
8
LEAD TIME
• Self-diagnose the DWS. ▪ In-house repair cost per unit: REDUCTION
• Utilize internal resources and expertise RM12,000.00
experienced staff with technical ▪ Savings per unit:
knowledge.
WEEKS
RM52,156.28
▪ Time taken to repair:
2-4 weeks
DRIVER WORK STATION (DWS)
IN-HOUSE REPAIR
84
REDUCTION
To find cost-effective solution for ▪ Original Equipment Manufacturer (OEM)
electronic
Binnacle.
component repair AV-8 Lead Time : 4 weeks.
▪ Long repair period affecting customer %
delivery lead time.
▪ Based on OEM quotes, RM67,626.00
2
• Self-diagnose the Binnacle. ▪ In-house repair cost per unit: REDUCTION
• Utilize internal resources and expertise RM15,000.00
experienced staff with technical ▪ Savings per unit:
knowledge. RM52,626.00
WEEKS
▪ Time taken to repair:
1 -2 weeks
BINNACLE
IN-HOUSE REPAIR PROCESS
50
To find cost-effective solution for ▪ Original Equipment Manufacturer (OEM) REDUCTION
electronic component repair AV-8 Lead Time: 8-24 weeks.
chemical detector GID-3. ▪ Long repair period affecting customer
delivery lead time.
%
▪ Based on OEM quotes, RM 26,010.00
WEEKS
1-4 weeks
GID-3
IN-HOUSE REPAIR PROCESS
Local purchase of
Original GID-3 motor from OEM
motor and fabricated
MANPOWER OPTIMIZATION
STRATEGIES & FACILITIES
CATHERINE XP
WORKSTATION
ROOM
PROTECTED SOFTWARE
• Analyse the software
• Consider the acquisition of the licensed software
THANK YOU
COST REDUCTION & OPTIMISATION PROGRAMME (CROP)
#2 FY2023 SECRETARIAT ENGAGEMENT
25 OCTOBER 2023
Corporate Management
Program Management
Corporate Performance System and Method
Office
The three units work very closely in identifying issues and challenges as well as assisting the subsidiaries
in development of possible solutions to achieve the Annual Management Plan (AMP)
Quick facts on Program Management Office (PMO)
2014 20+
across all sectors
established
participated in
project reporting GMC
More than 300 20+
3 current
manpower projects/ initiatives engaged
since establishment
PMO events
organised
Over the years, PMO has engaged in multiple projects with many different
subsidiaries across various sectors within DRB-HICOM
Key Roles of PMO
Strategy Success
Classification Monitoring
Initiatives
Submitted
92 16 Business Cases are monitored
by PMO on an update basis
Non-BAU Business
Initiatives Cases
Describe a
Source: PMI
Project is carried out via a set of interdependent tasks called…
Work
-
Breakdown
Structure
(WBS)
Consists of:
• Activity List
• Work Packages
Source: PMI
Project
Unique
Has stakeholders
Source: PMI
Projects are usually divided into phases
• Rule #1
– You shall gain consensus on
project outcome
The 12 Golden Rules
• Rule #2
– You shall build the best team
possible
The 12 Golden Rules
• Rule #3
– You shall develop a
comprehensive & viable
project management plan
The 12 Golden Rules
• Rule #4
– You shall determine how much
resources you really need to
get things done
The 12 Golden Rules
• Rule #5
– You shall have a realistic
schedule
The 12 Golden Rules
• Rule #6
– You won’t try to do more than
can be done
The 12 Golden Rules
• Rule #7
– You will remember that people
matter the most
The 12 Golden Rules
• Rule #8
– You will gain the formal and
ongoing support of all
stakeholders
The 12 Golden Rules
• Rule #9
– You must be willing to change
The 12 Golden Rules
• Rule #10
– You must keep others informed
of what you’re up to
The 12 Golden Rules
• Rule #11
– You must be willing to try new
things
The 12 Golden Rules
• Rule #12
– You must become a LEADER!
Session Summary
What is a Project?
A temporary endeavor
undertaken to create a
unique product, service or
result
Session Summary
Session Summary
Build
Get consensus on comprehensive Determine
project outcome project resources needed
management plan
Obtain support
Realistic Do not perform
from all
schedule/timeline “Gold Plating”
stakeholders
Building a house
Is this a Project?
Renovating a house
Is this a Project?
Planning a wedding
A. Initiation
QUESTION
B. Planning
What is the MOST
important phase in C. Execution
project management D. Monitor & Control
lifecycle? E. Closing
What are the 3 elements of Project Management’s
“Iron Triangle”?
S cope
____
T _ime
__ C ost
___
THANK YOU
rizal.yaacob@drb-hicom.com
COST REDUCTION & OPTIMISATION PROGRAMME (CROP)
#2 FY2023 SECRETARIAT ENGAGEMENT
25 OCTOBER 2023
25 OCTOBER 2023
CFT
EON Auditorium
25th October 2023
Journey
CF T 1 CF T 3 CF T 5 CF T 7 CF T 9
Reduce 40% Rejection rate Reduce logistic cost Factory Space RM 44 Mil Flood
defect and rework reduction from 25% from RM 7.2mil to utilization in cost recovery in
for SAGA Rear to 5% for non-auto RM 5.0mil by production & PHNSA1 and SA2
Axle assembly business Q4’22 warehouse area
COMPONENT OF CFT
ORGANISATION CHART COORDINATION
Steering Liaison
Committee coordinator
TIMELINE PROJECT
Mentorship, Charter, Crews
Definitive Target Savings
schedule
REWARD &
TOLL GATE
Regular interval RECOGNITION
project review Appreciation
Support & Motivation
CFT ORGANOGRAM
THE MILESTONE
FEB MAY JUNE SEPT TOLL GATE REVIEW
TG TG TG TG WITH SCs
JAN ✓ ✓ ✓ ✓ ✓ ✓ ✓
✓ ✓ ✓ DEC
Group meeting With Finance With Mentor
SMALL GROUP ACTIVITY & DISCUSSION
TOLL GATE REVIEW MECHANICS
MONTHLY AFFAIR
Fix the schedule
01
02 05
REVIEW MODE
CHAIRED BY HEAD On-line / Physical
Supported by SCs
PRESENTATION DURATION
10 + 5 min 03 04 FINANCE VALIDAITION
Advisory on cost calcs.
THE WHEEL OF FORTUNE
PROJECT
PROBLEM STATEMENT
IMPACT
Specific project proposal with cost
optimization driven
What are the pertinent issue which lead to
leakages
TEAM
Improved
performance
Leader
TIMELINE
4. Finance
FY 2023
PROBLEM SOLVING APPROACH
IMPLEMENTATION COST
Stage 1: Mechanics & Data collection
Stage 2: Data analysis
Stage 3: QC Tools
RM xx,000 (estimation) Stage 4: Trial & Monitoring
THE CFT STORY BOARD
TEAM
MEMBER
CFT From diverse
Department
PROJECT DATA
OWNER COLLECTION
The Leader Analysis &
Synthesis
SMALL GROUP
EVALUATION ACTIVITY
The Strategy Inter-Disciplinary
REWARD AND RECOGNITION
01 WINNER RM 20,000
04 CONSOLATION RM 2,000
2022 CFT ACHIEVEMENT & REWARDS
2023
15 12 7.6
CFT Mil Savings
Months
Project Target
CFT2 CFT4 CFT6 CFT8 CFT10 CFT12 CFT14 CFT16
Automation Cost down for Medical cost Maintenance Revenue from Consumable Reduce Reduce
P2/P6 line Purchased reduction by cost reduction apartment & purchased logistic cost reworked
Cost 4% by 2% condo reduction by 2 by RM84k parts
%
Reach me at:
myuza@drb-hicom.com
COST REDUCTION & OPTIMISATION PROGRAMME (CROP)
#2 FY2023 SECRETARIAT ENGAGEMENT
25 OCTOBER 2023
25 October 2023
Not feasible
Not logical
Not practical
PROJECT PROCESS FLOW – Structured flow…
5
COIN Reward – Process Flow…
Min 6 consecutive
months of positive results
1. Saving Initiative Category – Cost of Sales: 2. Saving Initiative Category - Process Efficiency & Cash Flow
a. Purchase and Consumption of Direct and Indirect Improvement:
Material a. Space Optimization
b. Labour Cost. e.g. OPE and Manpower Reduction b. Personnel. e.g. Tax, Insurance
c. General Overhead. e.g. Consumables, Utilities, Repair c. Project Base (3 valid quotations)
& Maintenance
d. Quality Initiative
e. OEE Machine Hours & Cycle Time Reduction
COIN Reward – Mechanism…
PLWS ELEMENTS INCENTIVES BASED ON REDUCTION IN WASTAGE INCENTIVES BASED ON COST & TIME SAVINGS PRODUCTIVITY INCENTIVES SCHEME
METHOD Continuous Improvement Project using variable method including, Small Group Activities, My Kaizen, Lean Sigma
PROCESS KPI Planning > Performance Evaluation System > Committee Review > Rewards Recognition Events > Periodical Review
REWARDS
* if applicable
COIN Reward – Mechanism…
PLWS
ELEMENTS COST OPTIMIZATION INITIATIVE (COIN) PROGRAM
Reward Rating Simulation Based on Project Category and Saving Value COINReward
COIN RewardTrend
Trend
THANK
YOU
COST REDUCTION & OPTIMISATION PROGRAMME (CROP)
#2 FY2023 SECRETARIAT ENGAGEMENT
25 OCTOBER 2023
❖ Minitab Overview
❖ RCA - Problem Solving Tools:
❖ Histogram >> Boxplot
Agenda
❖ Control Chart >> I-MR Chart
❖ Scatter Plot >> Correlation
❖ Regression Analysis
❖ Pareto
Minitab
3
MANUFACTURING & ENGINEERING
OWN IT | BUILD TRUST | ONE TEAM | DRIVE INNOVATION | MOVE FAST | DELIGHT CUSTOMERS MANUFACTURING & ENGINEERING
Some organizations using Minitab
4
MANUFACTURING & ENGINEERING
OWN IT | BUILD TRUST | ONE TEAM | DRIVE INNOVATION | MOVE FAST | DELIGHT CUSTOMERS MANUFACTURING & ENGINEERING
Minitab Interface
5
MANUFACTURING & ENGINEERING
OWN IT | BUILD TRUST | ONE TEAM | DRIVE INNOVATION | MOVE FAST | DELIGHT CUSTOMERS MANUFACTURING & ENGINEERING
RCA or Problem Solving Tools
6
MANUFACTURING & ENGINEERING
OWN IT | BUILD TRUST | ONE TEAM | DRIVE INNOVATION | MOVE FAST | DELIGHT CUSTOMERS MANUFACTURING & ENGINEERING
Histogram --> Boxplot
(Continuous Data)
Histogram
Purpose?
Histograms are visual
representations to show data
spread using frequency
distribution of the data sets.
8
MANUFACTURING & ENGINEERING
OWN IT | BUILD TRUST | ONE TEAM | DRIVE INNOVATION | MOVE FAST | DELIGHT CUSTOMERS MANUFACTURING & ENGINEERING
Histogram vs Boxplot
9
MANUFACTURING & ENGINEERING
OWN IT | BUILD TRUST | ONE TEAM | DRIVE INNOVATION | MOVE FAST | DELIGHT CUSTOMERS MANUFACTURING & ENGINEERING
Histogram / Boxplot
EXAMPLE 1:
A quality engineer wants to compare pistons from two suppliers. The engineer measures the lengths of
a random sample of 100 pistons from each of the suppliers. The engineer creates a histogram with fit
and groups to compare the distributions of the sample data.
10
MANUFACTURING & ENGINEERING
OWN IT | BUILD TRUST | ONE TEAM | DRIVE INNOVATION | MOVE FAST | DELIGHT CUSTOMERS MANUFACTURING & ENGINEERING
Histogram on separate graph
11
MANUFACTURING & ENGINEERING
OWN IT | BUILD TRUST | ONE TEAM | DRIVE INNOVATION | MOVE FAST | DELIGHT CUSTOMERS MANUFACTURING & ENGINEERING
Histogram – Overlaid on same graph
▪ Comparison between 2
data sets are clearly
shown using Minitab
▪ Items to compare:
▪ Data spread
▪ Range
▪ Center
12
MANUFACTURING & ENGINEERING
OWN IT | BUILD TRUST | ONE TEAM | DRIVE INNOVATION | MOVE FAST | DELIGHT CUSTOMERS MANUFACTURING & ENGINEERING
Similarly using Boxplot
13
MANUFACTURING & ENGINEERING
OWN IT | BUILD TRUST | ONE TEAM | DRIVE INNOVATION | MOVE FAST | DELIGHT CUSTOMERS MANUFACTURING & ENGINEERING
Boxplot
EXAMPLE 2:
A quality paint shop engineer wants to monitor the rate of 3 main defects to show before, during
improvement and after. The engineer collects the defect data from Jun-22 to Dec-22 (before), Jan-23 to
May-23 (during improvement) and result for Jun-23 (after). The paint shop dept target defect rate is 5%.
14
MANUFACTURING & ENGINEERING
OWN IT | BUILD TRUST | ONE TEAM | DRIVE INNOVATION | MOVE FAST | DELIGHT CUSTOMERS MANUFACTURING & ENGINEERING
Boxplot
15
MANUFACTURING & ENGINEERING
OWN IT | BUILD TRUST | ONE TEAM | DRIVE INNOVATION | MOVE FAST | DELIGHT CUSTOMERS MANUFACTURING & ENGINEERING
Control Chart
(Continuous Data)
What is Control Chart?
A control chart indicates when your Points that fall randomly within the
process is out of control and helps control limits indicate that your
you identify the presence of special- process is in control and exhibits only
cause variation. When special-cause common-cause variation. Points that
variation is present, your process is fall outside the control limits or
not stable and corrective action is display a nonrandom pattern,
necessary. indicate that your process is out of
control and that special-cause
Control charts are graphs that plot variation is present (8 Tests to
your process data in time-ordered identify special causes).
sequence. Most control charts include
a center line, an upper control limit,
and a lower control limit. The center When to use a Control Chart :-
line represents the process mean. ▪ Demonstrate whether your process is stable and consistent over time. A stable
The control limits represent the process is one that includes only common-cause variation and does not have any
process variation. By default, the out-of-control points.
control limits are drawn at distances ▪ Assess the effectiveness of a process change. With control charts, it is easy to
of 3σ above and below the center compare shifts in the process mean and changes in the process variation.
line. ▪ Communicate the performance of your process during a specific period of time.
17
MANUFACTURING & ENGINEERING
OWN IT | BUILD TRUST | ONE TEAM | DRIVE INNOVATION | MOVE FAST | DELIGHT CUSTOMERS MANUFACTURING & ENGINEERING
Tests 1-8 : Available for Continuous
8 Tests for Special Causes Tests 1-4 : Available for Discreet
Test 1: One point more than 3σ from center line
Test 1 identifies subgroups that are unusual compared Test 5: Two out of three points more than 2σ from the
to other subgroups. Test 1 is universally recognized as center line (same side)
necessary for detecting out-of-control situations. If Test 5 detects small shifts in the process.
small shifts in the process are of interest, you can use
Test 2 to supplement Test 1 in order to create a control
chart that has greater sensitivity.
Test 2: Nine points in a row on the same side of the Test 6: Four out of five points more than 1σ from
center line center line (same side)
Test 2 identifies shifts in the process centering or Test 6 detects small shifts in the process.
variation. If small shifts in the process are of interest,
you can use Test 2 to supplement Test 1 in order to
create a control chart that has greater sensitivity. Test 7: Fifteen points in a row within 1σ of center line
(either side)
Test 7 detects a pattern of variation that is sometimes
Test 3: Six points in a row, all increasing or all mistaken as evidence of good control. This test detects
decreasing control limits that are too wide. Control limits that are
Test 3 detects trends. This test looks for a long series of too wide are often caused by stratified data, which
consecutive points that consistently increase in value or occur when a systematic source of variation is present
decrease in value. within each subgroup.
Test 4: Fourteen points in a row, alternating up and
down Test 8: Eight points in a row more than 1σ from center
Test 4 detects systematic variation. You want the line (either side)
pattern of variation in a process to be random, but a Test 8 detects a mixture pattern. In a mixture pattern,
point that fails Test 4 might indicate that the pattern of the points tend to fall away from the center line and
variation is predictable. instead fall near the control limits.
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Types of Control Chart
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Control Chart : I-MR
EXAMPLE 3:
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I-MR (Individual - Moving Range Chart Example)
INTERPRET THE RESULTS
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Scatter Plot & Correlation Analysis
(Continuous Data)
Scatter Plot
Purpose? To study the association or relationship or correlation between 2 variables
SCATTER
Strong Positive Moderate Positive
PLOT Correlation Correlation
No Correlation
PATERNS
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Scatter Plot & Correlation
EXAMPLE 4:
A materials engineer at a furniture manufacturing site wants to assess the stiffness of the particle
board that the manufacturer uses.
The engineer measures the stiffness and the density and temp of a sample of particle board pieces.
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Scatter Plot
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Correlation
Sample 1 Sample 2 N Correlation 95% CI for ρ P-Value Sample 1 Sample 2 N Correlation 95% CI for ρ P-Value
Stiffness Density 29 0.919 (0.833, 0.962) 0.000 Temp Stiffness 29 -0.004 (-0.370, 0.363) 0.984
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Correlation
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RCA Tools Set
2
Control Chart
(Statistical Process Control - SPC)
What is Control Chart?
A control chart indicates when your Points that fall randomly within the
process is out of control and helps control limits indicate that your
you identify the presence of special- process is in control and exhibits only
cause variation. When special-cause common-cause variation. Points that
variation is present, your process is fall outside the control limits or
not stable and corrective action is display a nonrandom pattern,
necessary. indicate that your process is out of
control and that special-cause
Control charts are graphs that plot variation is present (8 Tests to
your process data in time-ordered identify special causes).
sequence. Most control charts include
a center line, an upper control limit,
and a lower control limit. The center When to use a Control Chart :-
line represents the process mean. ▪ Demonstrate whether your process is stable and consistent over time. A stable
The control limits represent the process is one that includes only common-cause variation and does not have any
process variation. By default, the out-of-control points.
control limits are drawn at distances ▪ Assess the effectiveness of a process change. With control charts, it is easy to
of 3σ above and below the center compare shifts in the process mean and changes in the process variation.
line. ▪ Communicate the performance of your process during a specific period of time.
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8 Tests for Special Causes Tests 1-8 : Available for Continuous
Tests 1-4 : Available for Discreet
Test 1: One point more than 3σ from center line
Test 1 identifies subgroups that are unusual compared Test 5: Two out of three points more than 2σ from the
to other subgroups. Test 1 is universally recognized as center line (same side)
necessary for detecting out-of-control situations. If Test 5 detects small shifts in the process.
small shifts in the process are of interest, you can use
Test 2 to supplement Test 1 in order to create a control
chart that has greater sensitivity.
Test 2: Nine points in a row on the same side of the Test 6: Four out of five points more than 1σ from
center line center line (same side)
Test 2 identifies shifts in the process centering or Test 6 detects small shifts in the process.
variation. If small shifts in the process are of interest,
you can use Test 2 to supplement Test 1 in order to
create a control chart that has greater sensitivity. Test 7: Fifteen points in a row within 1σ of center line
(either side)
Test 7 detects a pattern of variation that is sometimes
Test 3: Six points in a row, all increasing or all mistaken as evidence of good control. This test detects
decreasing control limits that are too wide. Control limits that are
Test 3 detects trends. This test looks for a long series of too wide are often caused by stratified data, which
consecutive points that consistently increase in value or occur when a systematic source of variation is present
decrease in value. within each subgroup.
Test 4: Fourteen points in a row, alternating up and
down Test 8: Eight points in a row more than 1σ from center
Test 4 detects systematic variation. You want the line (either side)
pattern of variation in a process to be random, but a Test 8 detects a mixture pattern. In a mixture pattern,
point that fails Test 4 might indicate that the pattern of the points tend to fall away from the center line and
variation is predictable. instead fall near the control limits.
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Control Chart (Continuous or Discreet Data)
(Continued on 8 Tests) :-
Apply certain tests based on your knowledge of the
process. If it is likely that your data might contain
particular patterns, you can look for them by
choosing the appropriate test. Adding more tests
makes the chart more sensitive, but may also
increase the chance of getting a false signal. When
you use several tests together, the chance of
obtaining a signal for lack-of-control increases.
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RCA Tools Set
2
Control Chart (Continuous Data)
(I-MR and Xbar-R)
I-MR (Individual - Moving Range Chart Example)
Use I-MR Chart to monitor the mean and variation of your process when you have continuous data that are individual
observations not in subgroups. Use this control chart to monitor process stability over time so that you can identify and correct
instabilities in a process.
GO OWN IT
MINITAB LET’S DO EXAMPLES
Dr. Thompson, a senior researcher has been monitoring the status of R-naught of an infectious disease following the
introduction of a vaccine aimed at curbing the said disease. Based on the past 23 months’ data, is it reasonable enough to
assume that the vaccine has been consistent in combating the disease’s progress?
1. Choose Stat > Control Charts > Variables Charts for Individuals > I-MR
2. In Variables, enter R0
3. Click I-MR Options
4. On the Tests tab, select 1 point > K standard deviations from center line (Test 1) and K points in a row on same side of
center line (Test 2) *If you are not sure which tests apply in your specific situation, use Tests 1 and 2.
5. Click OK in each dialog box
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I-MR (Individual - Moving Range Chart Example)
INTERPRET THE RESULTS
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- R (Xbar – R: Mean – Range Chart Example)
Use Xbar R Chart to monitor the mean and variation of your process when you have continuous data in subgroups. Use this
control chart to monitor process stability over time so that you can identify and correct instabilities in a process.
GO BUILD TRUST
MINITAB LET’S DO EXAMPLES
An engineer has installed pressure switch on one of the water pump to control rise of fall in pressure. He wanted to assess the
fluctuation of pressure (psi) which may cause the pressure switch to trip. Pressure from the water pump is sampled 5 times
daily for 10 days.
1. Choose Stat > Control Charts > Variables Charts for Subgroups > Xbar R
2. Choose Observations for a subgroup are in one row of columns
3. In Variables, enter Sample 1, Sample 2, Sample 3, Sample 4, Sample 5
4. Click Xbar R Options
5. On the Tests tab, select 1 point > K standard deviations from center line (Test 1) and K points in a row on same side of
center line (Test 2)
6. Click OK in each dialog box
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- R (Xbar – R: Mean – Range Chart Example)
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Exercise 1: I-MR, Xbar-R, Xbar-S Charts
A quality engineer for a plastic parts company monitors an injection molding process. A machine has a die that creates five parts at one
time. The engineer collects 20 subgroups of five parts each. The engineer monitors both the variation between parts that are created at
the same time and the between-subgroup variation between the batches.
(PLOT I-MR TO MONITOR VARIATION BETWEEN INDIVIDUAL PARTS --> PLOT XBAR-R/S TO MONITOR VARIATION BETWEEN SUBGROUPS)
1. Choose Stat > Control Charts > Variables Charts for Individuals > I-MR
2. In Variables, enter Parts
3. Click I-MR Options
4. On the Tests tab, select 1 point > K standard deviations from center line (Test 1) and K points in a row on same side of center line (Test
2)
5. Click OK in each dialog box
1. Choose Stat > Control Charts > Variables Charts for Subgroups > Xbar-S
2. Choose All Observations for a chart are in one column
3. In Subgroup sizes, enter Subgroup
4. Click Xbar S Options
5. On the Tests tab, select 1 point > K standard deviations from center line (Test 1) and K points in a row on same side of center line (Test
2)
6. Click OK in each dialog box. Click OK in each dialog box
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RCA Tools Set
2
Control Chart (Discreet Data)
(P-Chart and U-Chart)
P-Chart (Proportion Chart – Discreet Data Example)
Use P Chart to monitor the proportion of defective items where each item can be classified into one of two categories, such as
pass or fail. Use this control chart to monitor process stability over time so that you can identify and correct instabilities in a
process.
GO OWN IT
MINITAB LET’S DO EXAMPLES
ABC Factory produces fans to monitor the performance of its production process, varying numbers of fans will be tested every
week. The number of fans which failed the test is recorded.
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P-Chart (Proportion Chart – Discreet Data Example)
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U-Chart (Discreet Data Example)
Use U Chart to monitor the number of defects per unit, where each item can have multiple defects. Use this control chart to
monitor process stability over time so that you can identify and correct instabilities in a process.
GO DRIVE INNOVATION
MINITAB LET’S DO EXAMPLES
Jimmy, an engineer works for a company that produces drive shafts. Pits on a shaft will make the shaft uneven while rotating the
wheels of a car, which might affect the comfort and performance of a car. Jimmy is responsible for monitoring the number of pits
found on the drive shafts during the production process, every week, jimmy will take 75 samples.
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U-Chart (Discreet Data Example)
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Regression Analysis (Continuous Data)
Types of Regression
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Linear Regression
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Multiple Regression
EXAMPLE 5:
A materials engineer at a furniture manufacturing site wants to assess the stiffness of the particle board that the
manufacturer uses. The engineer measures the stiffness, density and temp of a sample of particle board pieces.
1. Choose Stat > Regression > Regression > Fit Regression Model
2. In Responses, enter Stiffness
3. In Continuous Predictors, enter Temp Density
4. Click OK in each dialog box.
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Multiple Regression
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Simple Regression
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Multiple Regression
EXAMPLE 6:
An energy usage commission encourages a manufacturing plant to keep monthly energy usage below 1,000,000
kWh. For each kWh above 1,000,000, the plant pays a higher rate. Analysts want to develop a statistical model to
identify the major sources of energy usage and use it to develop guidelines for monthly equipment usage. They
begin by considering the following 8 predictors tabulated below. Analysts access 20 months of plant data from their
database. They use monthly temperature averages recorded by National Weather Bureau.
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Multiple Regression
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Multiple Regression - Stepwise
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Pareto Chart
Pareto
EXAMPLE 7:
A quality paint shop engineer wants to conduct project selection based on defect rate data. The
engineer collects the defect data from Jun-22 to Dec-22 as the baseline information.
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Pareto
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Root Cause Analysis Overview
RCA
1 2 3 4 5
Hypothesis Test
Fishbone, Pareto I-MR, Xbar-R Chart Normality, P-value Fitted Line Plot
Roadmap
Basic statistics Laney P-Chart Poisson / Binomial Discreet regression 1, 2 Proportion test
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COST REDUCTION & OPTIMISATION PROGRAMME (CROP)
#2 FY2023 SECRETARIAT ENGAGEMENT
25 OCTOBER 2023