1 Hour Sigma Lean

6 LEAN
1 Corporate Quality Rev 2.0 08/20/02

What is Six Sigma ?
• Sigma is a term used in statistics to represent
standard deviation, an indicator of the degree of
variation in a set of measurement or a process
• Six sigma is a statistical concept that measures a
process in terms of defect – at the six sigma level,
there are only 3.4 defects per million.
== > Six sigma is also a Sigma Level Defects per Million

philosophy of managing (Process capability) Opportunities
that focuses on eliminating 2 308,537
defects through practices 3 66,807
that emphasize 4 6,210
understanding, measuring 5 233
and improving processes. 6 3.4

Preface
99.73%
95.4%
68.3%
(X  X) 2

n
_ Sum of all Values (x)
X =
Total # of Values (n)
σ = standard deviation
-3σ -2σ -1σ 0 1σ 2σ 3σ

6
LEAN
Presentation Outline Introduction
Step 0. Introduction
Step 1. Define & Contain the Problem
Step 2. Measure the Problem
Step 3. Perform Root Cause Analysis
Step 4. Plan & Implement Improvement
Step 5. Assess Effectiveness of Improvement
Step 6. Standardize and Control
Step 7. Realize and Reflect
Turning Training Into Action
Course Developed By:
Quality Council
Under the direction of Dr. Howard T. Fuller, Corporate VP of Quality
6
LEAN
What is Six Sigma Lean? Introduction
• Six Sigma Lean is the integration of best practices

for process improvement and increased customer
satisfaction.
• It captures the concepts of Six Sigma (performance)
and Lean (cost) in a 7-step framework.
SIX SIGMA LEAN
A statistical measure Eliminates non value add
Data driven approach Reduced cycle time
Breakthroughs Reduced WIP
6 LEAN
6
LEAN
SIX SIGMA LEAN Introduction
Voice of
the Customer
Cost Performance
Customer
Satisfaction &
Lean 6 Tools
Competitive Cost
(5S, Kaizen, etc) (Benchmarking, etc)
Defect Reduction
Cycle Time
Responsiveness
Waste Elimination

Six Sigma Lean Vision & Philosophy
The Vision of Six Sigma Lean is to delight
customers by delivering world-class quality
products and services at a competitive price
through the achievement of Six Sigma levels of
performance and eliminating waste in everything
we do.
The Philosophy of Six Sigma Lean is to

apply a structured, systematic approach to
achieve breakthrough improvement across all
areas of our business.

Six Sigma Lean - Practical Meaning
99% Good (3.8 Sigma) 99.99966% Good (6 Sigma)
20,000 lost articles of mail per hour Seven articles lost per hour
Unsafe drinking water for almost 15 One unsafe minute every seven
minutes each day months
5,000 incorrect surgical operations per 1.7 incorrect operations per week
week
Two short or long landings at most One short or long landing every
major airports each day five years
200,000 wrong drug prescriptions 68 wrong prescriptions per year

each year
No electricity for almost seven hours One hour without electricity

each month every 34 years

6
Everybody has Value Added, LEAN
Introduction
has Suppliers, has Customers
Value Added
Your Supplier Your Customer
(what you do)
Provide: Value Added: Output:
• product • assembly • product

• service • design • service
• information • knowledge • information
• creativity
• analysis
• etc…
The customer is the person or persons to whom you deliver

your product or service.
Does the output TOTALLY satisfy your customer?

6
LEAN
Introduction
What are the steps to Six Sigma Lean for all
disciplines? (Finance, Purchasing, Personnel, etc…)

6
What are some possible applications LEAN
of the Six Sigma Lean Method? Introduction
IN THE CALL CENTER

It could be used to measure and increase the number of calls answered on the
first or second ring.
IN THE STOCKROOM:
Could be used to reduce parts counts that are found to be inaccurate.
IN HUMAN RESOURCES:
It can be used to reduce the number of requisitions unfilled after 30
days (or some block of time)
IN ENGINEERING SERVICES:
It may be used to reduce the number of schematics returned because of drafting
errors.
IN ACCOUNT MANAGEMENT:
It can be used to track and reduce errors in completing order forms.
IN FINANCE:
It could be used to reduce the instances of accounts being paid after a specified
time limit has elapsed.
IN INTER-PLANT SHIPPING
It could be used to reduce the number of shipment delays.
6
LEAN
Six Sigma Lean Expectations Introduction
• Actively participate in learning Six Sigma Lean concepts that you

will take back to your site.
• Leadership – Setting the example.
• Waterfall training
to all employees
all employees complete projects (individual or team)
• Six Sigma Lean becomes a way of work, an integral part of our
culture.
• Immediate use of the 7-Step action form, including in the CCRP.
• Key Take Away – Knowledge, training materials, support resources
and organization-wide commitment.

6
LEAN
Introduction
End of Intro

6 LEAN
Methodology

Global Quality Excellence Initiative
Quality
World Class Assessment and Improvement System
Level
Malcolm Baldrige Assessment & Six Sigma Lean Black Belts
World sustain
Class
sustain
Improved
Implement Culture Change
Six Sigma Lean in all aspects of work
“Kaizen”
sustain
Implement Foundation Systems
Current Infrastructure, 5S, ESD, Metrics, Control Plans, etc
Time

6
LEAN
Step 1. Define & Contain the Problem

6 LEAN
Select a Problem Define & Contain
the Problem
• There are many problems that you could work on.

The question is how to select which problem to
work on from the many possibilities.
• Select a Problem - Identify and prioritize the

problems, then select a specific problem to work. If
solved, the solution will provide the
- Greatest Customer satisfaction improvement
and/or
- Greatest Financial benefit

6 LEAN
Problem Statement Define & Contain
the Problem
Description of the “Problem”,

How is it a Problem to the Customer or Company?
 What is wrong or not meeting our customer’s or the

business needs? What is Critical to Quality (CTQ) to
the Customer or Critical to Satisfaction (CTS)?
 What, When and Where does the problem occur?
(Based on performance data)
 What is the financial impact ($ = language of mgmt)
 Don’t describe a solution when describing the
problem
 Don’t prescribe blame

6 LEAN
Problem Statement Example Define & Contain
the Problem
• Over the past 3 months, RMA cycle times in B2 and B3 have

regularly exceeded the 30 day customer requirement. This causes
customer dissatisfaction, increased inventory and unreconciled /
overstated accounts receivable.
• Annual cost of the above is ~ $ 1.1M
Circle the What, When, Where and Financial Impact components

of the above problem statement.

6 LEAN
Define Scope and Goal Define & Contain
the Problem
 Define the boundaries of your efforts. One of the best ways to

define boundaries is to state what you WON’T work on
 Identify how you will measure the success of the project, and the
time frame for completing it. Ensure alignment to customer needs.
 What level of performance is Critical to Quality (CTQ) or Critical to

Satisfaction (CTS)? Rule-of-thumb for general continuous
improvement projects is a 70% reduction in defects.
• Over the past 3 months, RMA cycle times in B2 and B3 have

regularly exceeded the 30 day customer requirement. This causes
customer dissatisfaction, increased inventory and unreconciled /
overstated accounts receivable.
• Reduce RMA cycle time in B2 to an average of 20 days by
November 15th.
What Where When How Much

6 LEAN
Contain the Problem Define & Contain
the Problem
Problem Containment: We need to

determine what can be done in the short
term to keep poor quality performance
from going to the customer.
• LISTEN to the Customer (External and Internal)

• Confirm your understanding and empathize with their situation
• Tell the truth
• Offer a containment plan that will help “reduce the pain” of the
customer
• Commit to a timeframe for the containment plan and meet the
commitment
• Follow-up to confirm the situation has been contained
• Commit to a timeframe for the long-term plan and meet the
commitment
6 LEAN
More on Problem Containment Define & Contain
the Problem
Problem Containment Strategy:
There is a need to do an initial analysis to
understand how to contain the problem.
Problem Analysis:
Initial analysis of the problem found additional
resources at receiving and incoming
inspection could shorten cycle time by an
average of 30 days.
• Over the past 3 months RMA cycle times in B2 and B3 have

regularly exceeded the 30 day customer requirement. This
causes customer dissatisfaction, increased inventory and
unreconciled / overstated accounts receivable.
• Reduce RMA cycle time in B2 to an average of 20 days by
November 15th.
1) Add 3 new people to B2 & B3 receiving / H Bajwa / Sep 15 th

2) Provide a daily excel report tracking each unit / A Chen / Sep 15 th
3) Provide long term plan by Oct 20th / F Ketterer / Oct 20th
H. Bajwa 22 15th
Sep Corporate Quality Rev 2.0 08/20/02
6 LEAN
Step 2. Measure the Problem

6 LEAN
Measuring the Problem Measure the
Problem
Review our Problem Definition to determine what to measure
Measure the critical output (Y), along with gathering data on the
critical inputs (X’s) for use in “analysis”
Identify
and
validate X1
Problem Statement
Y1
solutions X2
PROCESS Project Scope/Goal
Y2
X3
Y3
X4

Determine Process Baseline 6 LEAN
Measuring “Y”
Measure the
Problem
The simplest way to establish the process baseline is to calculate the

average of the process performance and examine it using the Run Chart.
Make sure you include the business or customer performance req.’s
Change Over Times Line 22 & 23

RMASMT
Cycle Time
Sept. - Oct. 200X Jun-Aug
250
200
Days
150
Baseline:
Minutes
Process Average
100
50
50
Best of Breed
00 Business Need
21 20 22 23 21 24 22 25 22 24 24 23 22 21 21 22 25 21 22 24 23
Jun July
Line
Aug Performance
Requirement
From June through August the average RMA cycle time

has been 67 days.

6 LEAN
Step 3. Perform Root Cause Analysis

6 LEAN
Guidelines for Root Cause Assessment Perform Root
Cause Analysis
Like pulling weeds… unless we address the root that

causes the problem, poor results will keep coming
back. Addressing the results or symptoms of a problem
will never provide lasting solutions - given a little time…
the problem will come back
• Don’t assume you know the cause
• Get the facts and data organized
• Involve people who know the process
• Review the process map to make sure you understand
the process at multiple levels of complexity
• Stratify data to examine potential causes
• Analyze the data to examine relationships between Xs
and Ys
• Brainstorm next level POTENTIAL causes
• Use fact/data based decision making
• Follow the the detail guidelines for root cause
identification
• Use the 5 Whys
• Benchmarking is useful for generating ideas about
solutions AND root cause.
6 LEAN
Map the Process using Perform Root
Cause Analysis
a Process Review
PROCESS
1) Examine the current documentation concerning the process

2) Examine and analyze the current reports and data collected
from the process
3) Interview the people in the process (production associates,
team members, engineers, managers and supervisors)
concerning their views on the cause of the problem
4) Conduct a floor level process audit. Walk through the process
step by step “Be the process”
5) Where possible, personally witness the occurrence of the
problem
6) Sketch out the detailed “As Is” process flow
7) Identify waste or performance opportunities in the process
8) Summarize the findings

6 LEAN
7 Types of Deadly Waste (Muda) Perform Root
Cause Analysis
Overproduction, producing items we can not sell immediately

after producing.
Waiting, at the next downstream operation.
Transporting, of material.
Over-processing, processing steps that are not needed due to

equipment design / flow.
Inventories, more than absolute minimum.
Movement / Motion, unnecessary movement of people during

course of work
Defective parts, scrap and rework
Plus one added by Solectron

Talent, under utilization of human resource skill-base and
knowledge.

6 LEAN
Example: RMA Process Map Perform Root
Cause Analysis
Waste (Muda)
Repair
Unit
Transporting Movement Over Processing

Receive Send to Manually System Creates
Scan Serial #
RMA Scanning Verify Serial # Artificial Serial #
Transporting Over Processing
Scan Serial # Inspect / Send to Replace Artificial Manually Migrate
Test Unit Inspection w/ Real Serial # Real Serial # to WO
Over Processing
Manually Send to Movement
Log Defect Repair
Movement Transporting

6 LEAN
Lean Approach Perform Root
Cause Analysis
• Recognize & Identify Waste (Muda), Including use of 5S
• Have the Courage to Call It Waste (Muda)
• Have the Desire to Eliminate It
• Eliminate the Waste (Muda)
• Understand that Waste (Muda) Simply …
• Raises Cost
• Produces No Corresponding Benefit
• Threatens All of Our Jobs
Typical Benefits of Lean

Productivity Increase
Thruput increase
1st Pass Yield Increase
WIP Reduction
Floor Space Reduction
Lead Time Reduction
0% 25% 50% 31 75% 100% 125%

Corporate Quality Rev 2.0 08/20/02
6 LEAN
5 Whys Example Perform Root
Cause Analysis
State the problem, then ask why did this problem occur until
you reach root cause.
RMA Cycle Time

is too long WHAT?
...
Customer RMA Receiving/Incoming Repair
Request Why?
Processing Capacity
Time
Why?
Incoming Inspection Return Queue Why?
Manpower Documentation
WIP tracking Lack of Why?
Capability Scheduling
Why?
Inadequate Scheduling
System/Tool

6 LEAN
Perform Root
Example: RMA Root Cause Summary Cause Analysis
Identifying and stratifying root causes by Impact and Control.

Stratify your root causes by Impact and Control.
IMPACT
High Medium Low
Redundant steps (Muda) Missing documentation

Manual Steps (Muda)
No RMAfunction in WIP system
In Our Control
No scheduling system
CONTROL
Customer ships wrong qty Customer ships wrong unit Customer doesn't ship at all
Out Of Our Control
Functional inputs (finance, PM, etc) Damage in transit

6 LEAN
Perform Root
Benchmarking Cause Analysis
No company or site is the best at all it does.

Typically there are some core competencies
that make a company good and or great.
There is much to be learned by
benchmarking other companies who are
better then us in some of the key process
and product areas.
Benchmarking lets us examine other
companies and their processes and learn
from their successes and failures.
Benchmarking begins with the identification
of the process or business area we wish to
examine (internal or external). This should
be clear from our problem statement.
Benchmarking should be used for both
helping to identify root cause (contrast
good with bad) and for developing
solutions.

6 LEAN
Step 4. Plan & Implement Improvement

Plan &
Brainstorm Potential Solutions Implement
Improvement
• Use general brainstorming techniques to generate

process and design change ideas which will
eliminate the root cause of the problem.
• Separate ideas into short and long term solutions.
• The most critical aspect of brainstorming is the make
up of the team.
• Use team and management involvement to generate
consensus on direction of approach
• A single solution is not required at this point in the
improvement process. 2 - 3 short term solutions should
be selected and ranked. 1 to 2 long term solutions
should also be selected for evaluation and
experimentation.

Containment, Interim, or Plan &
Implement
Improvement
Long Term Solution?
Containment is Not a Long Term Solution

Band-aids are put on the process to minimize the effects of the problem to
the Customer. Often additional resources are needed to contain the
problem. This is not a cost effective way to run a business.
Long Term Solution
How will the problem, or a similar one, be prevented from reoccurring in
the future.
Will it eliminate the need for the additional resources utilized in the short
term solution.
Often times it will require investment in additional capital or technology.

Evaluate Cost, Complexity, Impact, Plan &
Implement
Improvement
Benefit and Risk for Each Solution
• Ensure solution costs and timelines are acceptable
to management
• Determine the simplicity or complexity of each
solution in terms of time and ease of completion
• Identify potential impact (change to the baseline) of
each solution. Explain how each solution will
address the root cause and impact real change in
performance.
• Financial benefit = benefit of solution – cost to
implement
• Assess the risks associated with each solution and
the likelihood of occurrence
• Determine need to involve/notify customer
concerning any product or process changes
• Make sure that proper validation occurs associated
with the solution prior to across the board
implementation
• Include an owner and date for each action

Example: RMA Cycle time Plan &
Implement
Improvement
Preventative Action Summary
Redundant steps (Muda) – See attached process flow diagram.

Manual Steps (Muda) – See attached process flow diagram.
No RMA function in WIP system
No scheduling system
Add RMA bolt-on to WIP system / T Cheng / Nov 15th

Est. Cost: $7k Est. Benefit: 17 day cycle time reduction
Deploy RMA+ S/W Tool for Scheduling / F Ketterer / Nov 15th
Est. Cost: $5k Est. Benefit: 30 day cycle time reduction
Est. total savings = $1.3M / yr.
H Bajwa Nov 1st Nov 15th

6 LEAN
Step 5. Assess Effectiveness
of Improvement

Assess
Collect Representative Sample of Data Effectiveness of
Improvement
Having implemented a solution, you must next find out if the

solution actually solved the problem.
A representative sample is needed to properly represent true

process performance. To indicate the true performance it
may include multiple lines, testers, operators, customers, and
a reasonable period of time
Tools used for this purpose are:
1. Before-and-after Pareto charts

2. Run chart with event markers
3. Statistical tests
3. Pictures
Compare Performance to Baseline Assess
Effectiveness of
Improvement
RMA Cycle Time

Days Containment
Long Term
Solution
Implemented
50
Jun July Aug Sep Oct Nov
Identification of Process Changes

Time series run charts with event markers clearly identify when the solutions were
implemented. Shifts in performance can then be evaluated to determine the effect
of the changes made.
Long-term solutions don’t necessarily need to result in another step function
reduction, but the containment resources should be removed as a result of it.

RMA Receiving/Repair Travel Distance Assess
Effectiveness of
Improvement
Spaghetti Diagram Before Distance Traveled

Before After
Product: 2173 ft. 669 ft.
People: 4928 ft. 1257 ft.
Information: 3833 ft. 536 ft.
TOTAL: 10934 ft. 2462 ft.
Spaghetti Diagram After

6 LEAN
Step 6. Standardize & Control

If the People Go, Standardize
& Control
Does the Process Stay?
An improvement must endure beyond the people who

created it
Ask yourself these questions:

1. What would happen if a key person got promoted or left
the company? Would the new process still be followed?
2. Are there sufficient materials or knowledge in place for a
newcomer to learn?
3. What mechanism is in place to ensure discipline?
4. Is there an owner who cares?

Determine the Stability of the Solution Standardize
& Control
• Is the solution in the final form or is it

only temporary?
• What is yet needed to assure the
solution can be transferred to other
lines, buildings, or process areas?
• Have you documented all process
changes?
• There may be a need for automation
and integration within current systems
before transferring it to other areas
• Clarity of the benefits of the solution
• If everything is ready to go before we
can consider applying the solution to
other process areas with similar
needs?
Types of Controls Standardize
& Control
Measurement Based Control Test & Inspection

• Management Dashboards & Review Test (error prone)
• Statistical Process Control Inspection (poor effectiveness and costly)
Documentation Periodic Checks

• Process Flow Diagrams Scheduled Maintenance
• Product Drawings, Schematics Scheduled Calibration
Based on Your • Process Management Plans Training and Operator Certification
project… Which of • Written Procedures Audits
these methods will Design Incentives

Control or sustain • Design out Product Problems Measures that are associated with a bonus
• Mistake Proofing Measures that are associated with a penalty
the improvements
• Robust Process Design
achieved for your
problem? Consider
the key process Once the Controls have been determined they
steps and what is need to be implemented and validated. How
needed to keep the long should you review performance to
process in control validate effectiveness of the controls?

Identify Opportunities
Standardize
for Standardization & Control
It is likely that a similar process or

problem situation exists elsewhere.
Determine where in the organization or
company there are processes that are
similar to one under improvement.
Determine if they suffer from similar
problems as the one being improved.
Some of the gains that may be
achieved:
• Rapidly achieve more improvement in
customer satisfaction
• Avoid wasting resources solving the
same problem
• Speed up the process of improvement
throughout your organization
• Document and communicate the
solution
6
Step 7. Realize & Reflect LEAN

Realize the Benefits of Improvement Realize &
Reflect
How did you justify the cost savings for the project?
What changes will have to occur to create the
savings?
Based on the impact of the benefits of the solution
have you made changes to the process to realize
the benefits?
Possible Actions:
Re-deploy personnel
Reorganize the floor
Reduce inventory levels in Planning System
Eliminate inspection or test operations
Modify Vendor/Customer contracts
Other cost saving changes to the operation

Reflect on the Improvement Process Realize &
Reflect
At this point in the

improvement cycle we
consider the speed and
effectiveness with which we
made the improvement(s).
What were the lessons
learned?
Ask yourself “how we could
have accomplished the
same results more quickly
and simply?”
Where did we get stuck?
What can be done to avoid
similar problems in the
future?

Close the Project or
Improvement Team Realize &
Reflect
Some Indicators That It Is Time To End
• The goals have been met and the individual or team has been
successful
• The solutions have all been implemented and the team is
monitoring performance and is no longer improving the process
• The Team is “burned out” and has done sufficient good that it
should move on to the next project or problem to solve
• Make sure the accomplishments of the individual or team are
appropriately recognized personally, publicly, in their paychecks, etc

6
Summary: LEAN
What To Use When A Problem Occurs? Summary
Detailed Management
Activities Six Sigma Tools Lean Tools Involvement
Identify Problem Areas Basic QC Tools Value Stream Mapping
Select a Problem Check Sheet Waste Identification -
Problem Statement and Containment Pareto Diagram 7 Wastes Review &
Problem Objective, Goal and Benefits Concentration Diagram Approve
Perform Resource Analysis (Stakeholder, equip, $) Run Chart
Develop Improvement Plan Flow Chart
Map the Process Cause & Effect Diagram
Define Data Collection Requirements Histogram
Develop Data Collection Plan Scattergraph Monitor
Collect Data Advanced Tools* Progress
Define Process Baseline MSA
Evaluate Data to Determine Relationships Partition of Variation Workplace Organization
Stratify Data to Understand Root Cause Regression 5S
Develop a Cause & Effect Diagram Capability Analysis Standardized work Monitor
Determine the 5 Whys Control Charts Waste Elimination Progress
Benchmark on Best In Class Processes Fault Tree Analysis, Kaizen events
List and Prioritize Root Causes FMEA Jidoka (error proofing)
Brainstorm Potential Solutions JIT
Evaluate Cost, Complexity, Impact, Benefit and Risk Brainstorming Cellular mfg.
Prioritize Solutions into Long Term and Short Term Effort Impact Analysis One piece flow (takt) Review &
Communicate Implementation Plan Prioritization Matrix SMED Approve
Implement Solution Pull system (kanban)
Collect Representative Sample of Data Basic QC Tools Produciton smoothing
Compare Performance to Baseline Annotated Run Chart Balanced work flow
Reach the Improvement Goal? If no… go back to 4 Advanced Tools* Inventory reduction Review
Evaluate Improvements in Series Control Charts Visual Management Effectiveness
Statistical Tests TPM
Identify Opportunities and Owner for Standardization Review &
Determine the Stability of the Solution Approve
Determine the controls needed to sustain the gains Advanced Tools* Recommendations
Implement Needed Controls Control Charts for
Implement Standardized Solutions Standardization
Realize Benefits of Improvement
Reflect on the Improvement Process
Determine Any Lessons Learned
Document and Communicate Improvements Close Team
Close the Project or Team
Select Next Project or Process for Improvement
* Get assistance from your Building or Site Quality Engineer
6
Summary LEAN
Summary
• Improvement is hard work but the results are rewarding

• Process and product improvement is essential to our business
plan and the satisfaction of our customers
• Using a systematic approach always results in systematic
improvement
• The Six Sigma Lean improvement model is powerful and can
be universally applied to product and process improvement
• Use the Six Sigma Lean for routine improvement and problem
solving
• Employees like to be involved in product and process
improvement
• Six Sigma Lean training is an investment in our employees that
will empower them to participate
• Like anything … the more you do it… the easier it gets
6
LEAN
Summary
Six Sigma Lean Expectations
• Actively participate in learning Six Sigma Lean concepts that you
will take back to your site.
• Leadership – Setting the example.
• Waterfall training
to all employees
all employees complete projects (individual or team)
• Six Sigma Lean becomes a way of work, an integral part of our
culture.
• Immediate use of the 7-Step action form, including in the CCRP.
• Key Take Away – Knowledge, training materials, support resources
and organization-wide commitment.

6
LEAN
Relationship Between PDCA, 7 Step, Introduction
8D, Six Sigma and Lean

PDCA 8D 7-Step Lean Mfg Six Sigma “DMAIC”
PLAN 1. Define and Contain the Identify cycle time Define
1st Discipline - Form Team problem and WIP reduction • Identify Project, Champion and Project Owner
2nd Discipline - Define Problem as major issue • Define Problem, Objective, Goals & Timeline
4th Discipline - Contain the Problem • Initial assessment and containment plan
• Conduct Effort-to-Impact Analysis
1st Discipline cont. • Do Stakeholder/Resource Analysis
• Identify Supplier - Input - Process - Output - Cust.
• Map the Process
2. Measure the problem Establish cycle Measure
time and WIP • Establish Metrics and Performance Standards
baselines • Develop Data Collection/Validation Plan
• Use Data to Establish Baseline
3rd Discipline - Root Cause 3. Root cause analysis Conduct Value Analyze
Description Stream Analysis • Identify What, When and Where Defects Occur
and identify • Benchmark On Who is Doing Better
waste (Muda) • Establish Causal Relationships Using Data
• Determine Root Cause Using Data
DO 5th Discipline - Permanent CA Plan 4. Plan and implement Improve and Improve
improvement verify effectivess • Develop Solution
• Assess Risk of Implementing Solution
CHECK 6th Discipline - Verify Effectiveness 5. Evaluate effectiveness • Demonstrate Solution, Validate Primary Metrics
ACT 7th Discipline - Prevent Recurrence 6. Standardize & Control Establish controls Control
• Develop Transfer Plan
• Establish Long Term Owner
• Establish Controls and Action Plans
7. Realize & Reflect • Realize Benefits of Implementing Solution
8th Discipline - Congratulate Team • Recognition
Many choices to the approach, which are essentially the same.

What about best practices…
6
LEAN
End

Define
Problem Statement: Apple line at Solectron Indonesia - Batam
has unnecessarily long throughput time, cycle time causing
increased WIP and decreased flexibility.
Objective/Goal Statement: Develop and implement a Lean

Manufacturing line for Apple project at Solectron Indonesia -
Batam within three months (20 Oct 2003).
Reduce W/D from 2.57 to 1.56 days of supply
Value of reduction = $467000
Team:
Six Sigma Lean Champion: CC Loh
Six Sigma Lean Lead: Raymond Yong
Team Members: TH Koh - Manufacturing Engineer
Joseph Lim - QA Engineer
Vijaya K - Production Manager
Jumali - Test Engineer
Agus R - Prod. Control
Yeni - Industrial Engineer

PCBA Process Flow
W/H SMT MC 1 Test 1

Queuing, Queuing, Set-up Queuing, Queuing, ICT
Staging, MRB Printing,Placement Labelling, Stand Debug, R/W
Kitting MI, Reflow, R/W off Assy, Inspect
W/D = 0.67 days W/D = 0.57 days W/D = 0.20 days W/D = 0.11 days
PLT = 0.89 days PLT = 0.40 days PLT = 0.20 days PLT = 0.11 days
Test 2 MC 2 Packaging Shipping

Queuing, Queuing, Queuing, FQA Queuing, FGI
Ft 1, 2, 3, … Heatsink assy, Packaging, Shipping
Debug, R/W FVMI, R/W OBA
W/D = 0.14 days W/D = 0.04 days W/D = 0.27 days W/D = 0.57 days
PLT = 0.20 days PLT = 0.04 days PLT = 0.27 days PLT = 0.57 days
Total W/D = 2.57 days of supply Ideal MLT = 1.62 days

Actual Avg MLT =2.68 days Actual Std Dev of MLT =
0.25 days

Measure Summary
WIP located at Value Add steps as a % of Total WIP
% VA %NVA %VE
PCBA 4.6% 82.2% 13.2%
VA = Value Add, NVA = Non-Value Add, VE = Value Enabling

PCBA Pareto Analysis of VA, NVA, VE WIP
VA, NVA, VE WIP Pareto
1400
1210
1200 1070
1024
1000
WIP Qty
800 682 672
600
400
239 234
200
0
Waiting Transport Inventories Def ectives VE Over Processing Value-Add
Stage 1
Waiting
400 380
350
300 270
256
250
200
150 136
100
50
0
For Handload For SMT Top For shipping For FQA

KAIZEN 1,2
Problem Statement :
Excess WIP at SMT, Handload and packing areas.
Objective :
Reduce W/D from 2.57 to 2.11 due to waiting / queuing at SMT, handload and packing
area by rebalancing and re-layout with Continuous Flow Manufacturing concept.
Team:
Bambang (test), Jovy (production), Heriyadi (SMT), Debbie (ME), Yeni (IE), Evi K
(production), Berliana (production), Suharni (store)

KAIZEN 1,2
Pareto Analysis
1st Level Pareto
1400
1210
1200 1070 1024
1000
800 682 672
600
400 239 234
200
0
Waiting Transport Inventories Defectives VE Over Value-Add
Processing
2nd Level Pareto
500 Waiting Transport

400 92
300 90
200 360
100
270 256
136
0
For Handload For SMT Top For shipping For FQA

KAIZEN 1,2 (cont)
Activity Status Résults Completion
Value Stream mapping of process Done 24-Aug

Determine the highest pareto and root cause Done 28-Aug
Defined the process flow & instruction at Done 7-Sep
SMT and Handload area
Re-layout the SMT and handload area with Done 14-Sep
CFM concept
Defined the process flow & instruction at Done 22-Sep
packing area
Implement the changes by reducing 128 board Done 29-Sep
(1 pallet) WIP at packing area
Not done On going Closed
BEFORE (metrics, picture, etc) AFTER (metrics, picture, etc)

KAIZEN 1,2 (cont)
WIP Chart WIP Chart
2nd Level Pareto (Before) 2nd Level Pareto (After)
1200 100.00%
100.00% 1200 400.00%
88.70% 90.00%
350.00%
1000 1000
80.00%
300.00%
70.00%
800 67.44% Improvemen800
60.00% t 250.00%
75.91%
600 50.00%
600 200.00%
452
40.00%
37.54%
400 360 150.00%
30.00% 400
256
20.00% 97.93% 100.00%
100.00%
200 91.03%
136
200 136 128
10.00% 50.00%
46.90%
0 0.00% 20 6
For For SMT Top
For shipping For FQA 0 0.00%
Handload For FQA For shipping
For Handload
For SMT Top
WIP W/D Translation $ WIP W/D Translation $
1204 0.602 $ 279,328 290 0.145 $ 67,280

KAIZEN 1,2 (cont)

KAIZEN 1,2 (cont)

KAIZEN 3
Problem Statement :
a. Defective part due to solder short, tombstone and misalignment caused by
shrinkage PCB issue.
b. Defective parts due to component failure
Objective :
Reduce W/D from 2.11 to 1.9 by improving yield at SMT, ICT and FCT.
Team:
TH Koh (ME), Musdi (ME), Jhon K (SMT), Joseph Lim (QA), Jumali (Test),
Simon Sinaga (Production),

KAIZEN 3 (cont)
Analysis (Process assembly related issue)
5 Why's
1st why 2nd why 3rd why 4th why 5th why
Stencil opening U4000 opening design Stencil opening too big Component collapse causing
Solder short wrong short
Tombstone
Misalignment Material PCB shrinkage after 1st Different degree of PCB designed by customer
reflow oven shrinkage by different Gerber file
vendor
Chip mounter Placement height nozzle wear and tear

placement inconsistent
inconsistent
Different part thickness One part number have Different vendor different
from same part number different vendors dimension

KAIZEN 3 (cont)
Analysis (Functional related issue)
5 Why's
1 st why 2nd why 3rd why 4th why 5th why

U3, U29, U18 Bad parts Different test coverage Component integration Incomplete test coverage at
component between supplier and and application issue component level defined
failure Solectron on board by customer

KAIZEN 3 (cont)
Activity S tatus Résults Completion
Identify top defect Done 25-Aug

Identify root cause Done 1-Sep
Improvement plan & corrective action
- Work with Apple to come up with correct design for Done 8-Sep
U4000 stencil opening
- Create individual part library for different vendors Done 22-Sep
- Fabricate new stencil with shifting of openings to Done 29-Sep
compensate for PCB shrinkage
- Work with Apple to improve the supplier On going 20-Oct
component test coverage
Not done On going Closed

KAIZEN 3 (cont)
WIP Chart WIP Chart
100.00% 100.00%
100.00% 180.00%
800 800
90.00% 160.00%
700 Improveme 700

80.00% 80.00% nt 140.00%
46.34%
600 70.00% 600
120.00%
500 60.00% 500

57.50% 100.00% 100.00%
100.00%
50.00%
400 400
78.26% 80.00%
40.00%
300 300 60.87%
260 60.00%
30.00%
200 200
200 25.00% 180 200 43.48%
160 40.00%
20.00%
100
100 80 80
100 20.00%
10.00%
0 0
0 0.00% 0 0.00%
SMT Top ICT FCT SMT Bot VMI ICT FCT SMT Bot SMT Top VMI
WIP W/D Translation $ WIP W/D Translation $

800 0.4 $ 185,600 460 0.23 $ 106,720

Value Stream Delta
WIP located at Value Add steps as a % of Total WIP
% VA %NVA %VE Translation MLT

$(k) (days)
PCBA
Before 4.6% 82.2% 13.2% 1192 2.68
Current 6.3% 75.9% 17.8% 880 1.96
VA = Value Add, NVA = Non-Value Add, VE = Value Enabling

Event / Impact Improvement Summary
Site: Solectron Batam Date: 8 October 2003
3
Characteristic:
W/D
2.5
Unit:
Days of Supply
2
1.5
0.5
Completed by Week Au 18 Au 25 Se 1 Se 8 Se 15 Se 22 Se 29 Oc 6 Oc 13 Oc 20 Oc 27 No 3
W/D Days of Supply Plan 2.57 2.57 2.57 2.57 2.18 2.18 2.11 2.11 2.11 1.56 1.56 1.56
Act. 2.57 2.57 2.57 2.57 2.18 2.18 2.11 2.11 1.95
Major Kaizen Events
1 Line Connectivity X
2 Optimized KANBAN X
3 Reduce defective rate X
4 W/H Kit Reduction X
5
6
7
Other Activities
Six Sigma Lean Training for Shop Floor X
Institute MLT measures on shop floor X

1 Hour Sigma Lean

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6 LEAN

1 Corporate Quality Rev 2.0 08/20/02

== > Six sigma is also a Sigma Level Defects per Million

2 Corporate Quality Rev 2.0 08/20/02

-3σ -2σ -1σ 0 1σ 2σ 3σ

3 Corporate Quality Rev 2.0 08/20/02

Course Developed By:

• Six Sigma Lean is the integration of best practices

6 Corporate Quality Rev 2.0 08/20/02

The Philosophy of Six Sigma Lean is to

7 Corporate Quality Rev 2.0 08/20/02

200,000 wrong drug prescriptions 68 wrong prescriptions per year

No electricity for almost seven hours One hour without electricity

8 Corporate Quality Rev 2.0 08/20/02

has Suppliers, has Customers

Provide: Value Added: Output:

• product • assembly • product

The customer is the person or persons to whom you deliver

Does the output TOTALLY satisfy your customer?

9 Corporate Quality Rev 2.0 08/20/02

10 Corporate Quality Rev 2.0 08/20/02

IN THE CALL CENTER

• Actively participate in learning Six Sigma Lean concepts that you

12 Corporate Quality Rev 2.0 08/20/02

13 Corporate Quality Rev 2.0 08/20/02

14 Corporate Quality Rev 2.0 08/20/02

15 Corporate Quality Rev 2.0 08/20/02

16 Corporate Quality Rev 2.0 08/20/02

• There are many problems that you could work on.

• Select a Problem - Identify and prioritize the

17 Corporate Quality Rev 2.0 08/20/02

Description of the “Problem”,

 What is wrong or not meeting our customer’s or the

18 Corporate Quality Rev 2.0 08/20/02

• Over the past 3 months, RMA cycle times in B2 and B3 have

Circle the What, When, Where and Financial Impact components

19 Corporate Quality Rev 2.0 08/20/02

 Define the boundaries of your efforts. One of the best ways to

 What level of performance is Critical to Quality (CTQ) or Critical to

• Over the past 3 months, RMA cycle times in B2 and B3 have

What Where When How Much

20 Corporate Quality Rev 2.0 08/20/02

Problem Containment: We need to

• LISTEN to the Customer (External and Internal)

• Over the past 3 months RMA cycle times in B2 and B3 have

1) Add 3 new people to B2 & B3 receiving / H Bajwa / Sep 15 th

23 Corporate Quality Rev 2.0 08/20/02

Review our Problem Definition to determine what to measure

24 Corporate Quality Rev 2.0 08/20/02

The simplest way to establish the process baseline is to calculate the

Change Over Times Line 22 & 23

From June through August the average RMA cycle time

25 Corporate Quality Rev 2.0 08/20/02

26 Corporate Quality Rev 2.0 08/20/02

Like pulling weeds… unless we address the root that

1) Examine the current documentation concerning the process

28 Corporate Quality Rev 2.0 08/20/02

Overproduction, producing items we can not sell immediately

Waiting, at the next downstream operation.

Over-processing, processing steps that are not needed due to

Inventories, more than absolute minimum.

Movement / Motion, unnecessary movement of people during