Operational Excellence - Lean Applied

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Operational Excellence - Lean Applied

Operational Excellence

A Case Study – Integration of

Lean Six Sigma and VAVE


Agenda

OE Objectives Lean Six Sigma VAVE Case Study


Definitions

Operational Excellence is a philosophy of leadership,

teamwork and problem solving resulting in continuous

improvement throughout the organization by focusing

on the needs of the customer, empowering employees,

and optimizing existing activities in the process.

• OE'S main objective is to reduce operation cost and

wastes, without affecting quality, time delivery and

cost of products and services one has to offer.

© Lean Applied 2011 Page 3


Operational Excellence

Operational

Excellence

Quality

Time

Product/Service

Cost

Customer

Specification

Process

Requirement

Service Level

Agreement

Speed

Material Cost

Transaction Cost

Width 100cm 10+/-cm

Length 20m 20+/- cm

Weight 2kg +/- 0.1 kg

Pressure 10+/-psi

Temp 20 +/- Degrees

Flow Rate 10 m/s

Complete in 30 Days

Submit in 3 days

Approval in 1 day

Lead time reduction

VA/NVA ratio

Waste Elimination

Inventory

Steel vs Plastic

Blue vs neutral resin

PP vs PolyE

Efficiency

Email vs Fax

Video vs Phone

© Lean Applied 2011 Page 4


Agenda

OE Objectives Lean Six Sigma VAVE Case Study


Operational Excellence

Operational

Excellence

Quality

Time

Product/Service

Cost

Six Sigma

• Focus on customer Quality

• Eliminate variations

• DMAIC Approach

• Aligns to Strategic Goals

• Y = f(x)

Lean

• Focus on customer value

• Eliminate process wastes

• Reduce inventories

• Focus on Time

VAVE

• Focus on function

• Reduction on

Material/Parts Costs

• Cost Benefit

• V=F/C

© Lean Applied 2011 Page 6


VA/VE DEFINITION

• Value Engineering/Analysis can be defined as

a planned, clean sheet approach to problem

solving, focusing on specific product design

and process functions.

• Value Analysis is employed to improve value

after production has begun, Value Engineering

is employed to maximize value prior to

expenditure of facilities and tooling money.

Hi-Lex Controls © 3/19/03 7


Value

A product or service is generally considered to

have a good value if that product or service has

appropriate performance and cost.


Function

The basic purpose of each expenditure, whether it

be for hardware, the work of a group of people, a

procedure, or whatever, is to accomplish a

function. It is necessary to establish the language

of function and stay within this language.


VA/VE Formula V=F/C

Value = Function

Cost


VA/VE Formula V=F/C

Value = Function

Cost


VA/VE Formula V=F/C

Value = Function

Cost


The difference in VA and VE

VA (Value Analysis)

1. Existing product or

service

2. Manufacture, After

Sales

3. Process Innovation

4. Unnecessary cost,

improvement

performance

VE (Value Engineering)

1. New product or

service

2. Prototyping, Design or

Per-manufacture

3. Function breakthrough

4. Increase Value


The difference in VA and VE

Prototyping

Design

Premanufacture

Manufacture

After Sales

VE

VA

VA/VE


VA/VE Application


OE CDT

VAVE

DFSS

Cost

Impact ($)

DMAIC

Tools

Complexity

Lean

Kaizen/5S

Duration (Time)


Agenda

OE Objectives Lean Six Sigma VAVE Case Study


Window Regulator

© Lean Applied 2011 Page 18


VA/VE Opportunity

• VA/VE workshop was conducted in Jan 13, 2003 with

some of grease suppliers to perform on the WIN 26

window regulator

• Currently, the WIN26 window regulator uses grease

(y), which has low viscosity, but with high cost

• High grease consumption

• Team decides to proceed with a high viscosity grease

(x) due to its reduction cost of 0.50 cents/part


What they say

• Why

• It will just create a lot mess

• We end up cleaning the line vs getting the

numbers up

• I don’t like ending up saying “I told you so....”

• There is no way you going to use the piece of

junk.


Where it begins


Problems with Grease (x) on Guide Rails

Mess around

the blocks.


Problems with Grease (x vs y) at Drum House

Grease (x)

Grease all

over frame

Grease (y)


The execution plan

• Perform DOE setting:

– X1 – Speed of Spray

– X2 – Grease x and Grease y

– X3 – Time of Spray

• Install sprayer at drum house


Improve Phase – Grease (x) Optimize setting and

sprayer and Drum House

Grease Mess Reduced


Improve Phase – Grease (x) Optimize setting and

sprayer and Drum House

Grease (x)

Grease all

over frame

Grease (y)


How it ends

• No more greasing at Drum house - Reduction

of process time of 2 sec (Lean)

• Consistently apply grease of 2 gm on the guide

rails – no purchase variance (Six Sigma)

• Utilize grease (x) across all window regulators

(VA/VE)

• Project saved USD 3 Million per year


Lessons Learned

• Different tools for different objectives

• Choose the right team members

• Do not confined within our scope, use

suppliers, subject matter experts, challenge

status quo

• Think!


Thank you

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