QSG - Always Keep Improving Quality Support Group Case Studies Paul Hine 4 Essex Center Drive #3971 Peabody, MA 01960 203-233-0582 paul.hine@qualitysupportgroup.com ©2014 QSG, Inc. QSG - Always Keep Improving

QSG - Always Keep Improving Case Studies Overview A long time problem exists within the company Someone within management at the company decides to engage QSG to help them with a Lean Sigma improvement approach Top management receives training and guidance on how to start a Lean Sigma improvement process using a Pilot approach with an internal Steering Committee to guide them QSG - Always Keep Improving

QSG - Always Keep Improving Case Studies Overview The Pilot methodology is critical to starting the Lean Sigma improvement approach process and having it be successful One or two Pilot projects are selected. Only start what you can support! Pilot Projects should be selected that are meaningful and winnable. So the biggest problem the company has would not be a good Pilot Project The Pilot is selected to try new found skills on and by implementing changes it benefits the company as well as the employees. QSG - Always Keep Improving

QSG - Always Keep Improving Case Studies Overview A Team Leader and a cross functional team is selected and the QSG consultant works with them weekly Team size should be approximately 4 – 8 team members Management must agree to the use of the In/Out Rule Example every team member is allowed 2 - 4 hours each week to attend team meetings and have time outside the team meeting to work on project related assignments The team should complete their project within 12-16 weeks QSG - Always Keep Improving

WIP Inventory Loss Reduction Team The company over the last three years averaged just over a $100,000 per year write off (direct hit to profits) of the transfer paper they used in the coating process Within the first three meetings the team created a process map and a fishbone of the possible causes for the loss The team then met with those employees who were in contact with the transfer paper and showed them the process map and fishbone. Based upon the employees input the team made adjustments. The team used the information they had come up with to identify the four largest causes. There were four team members and each one took responsibility for trying to resolve one of problems with the help of other employees. QSG - Always Keep Improving

Quality Support Group, Inc. Plan - Do - Study- Act DEMING WHEEL LEARNING CYCLE Plan Iterative Learning Act Do Try Study Reflect P-D-S-A TRIAL AND LEARN Quality Support Group, Inc.

WIP Loss Reduction Team The team had great support from a person (non team member) in accounting who spent hours each day reconciling transfer paper moves and usage. This area was determined to be the greatest cause of loss and the team with accounting and operations went through several PDSA tracking and changing of the forms that were used to move transfer paper The team quickly took care of some man made physical barriers that the employees had brought up. This was done as a PDSA eventually. A Process Owner was established who worked with the team and in the area. The next Physical Inventory had a $600 pick up QSG - Always Keep Improving

Export Shipment Errors Getting the data was the teams first challenge, none of the systems in the company were tracking it. The political heat was high. While the team was working on getting a metric they could use they created a process map and a fishbone for potential causes. They shared this with those working in the area which created buy in. The team with those involved made 5 changes to the map to reflect reality and agreed upon the 4 main causes of errors. Each team member took ownership of putting in place a positive change for the cause. Each PDSA was tracked. The companies controller said “PDSA’s finally have given me the freedom to fail!” The team determined in the last year there was an average of 2.5 Export Shipping Errors per month QSG - Always Keep Improving

Export Shipment Errors The team developed real support from the shipping department and great cooperation from marketing/sales One person in shipping (a non team member) took great interest in working with the team. He spearheaded many of the changes with the team. He asked if he could be the new Process Owner. The team implemented many little changes that had a large impact. A major accomplishment was to dramatically improve cooperation and communications between shipping and marketing/sales After all the changes were made the company went 5 months with no Export Shipping errors. 1 error was made in the 6th month followed by months of none. QSG - Always Keep Improving