1. Mr. Al Hammonds Manufacturing and Quality Director
Strategic Partnership for Industrial Resurgence
The Center for Industrial Effectiveness, University at Buffalo
And
Instructor, UB Department of Industrial Engineering
Lean Manufacturing
Six Sigma
EAS 590 – February 25, 2004 used again March 2, 2005

2. Flow Manufacturing Modules/Agenda
The Flow Manufacturing manual consists of 5 separate modules to be completed as arrows indicate
The Plant wide Flow Plan is shown off to the side since it is a separate task that needs to be completed prior to Process Design for Flow
Each box will be discussed in more detail during this presentation, with the most emphasis on sections:
Determining Resources to Meet Customer Demand
and Process Design for Flow
Since this is where Manufacturing Engineering will have the most input

3. Flow Manufacturing Manual
Design New or Modify Existing Manufacturing Systems:
Establish a Team
Define the Problem
Gather and Analyze Data
Redefine Operations and Procedures
Formalize and Validate Changes
DO IT AGAIN!
The steps outlined in the Flow Manufacturing manual are intended to be used to design new or modify existing manufacturing systems -
can be used to take a team through a workshop or
be used by a manufacturing engineer

4. Flow Manufacturing Contents
6 “How-To” Chapters
Value Stream Identification
Improve Flow
Determining Resources to Meet Customer Demand
Process Design for Flow
Plant-Wide Flow Plan
Financial Report Card
A “how-to” chapter takes you through each topic step by step with examples and advice
There are also electronic versions of the forms referenced in the manual.
(The 6th How-to chapter, Financial Report Card, is an optional chapter which helps you to identify cost savings opportunities)

5. Flow Manufacturing Contents
9 Operational Definitions
Process Integration & Flexible Work Cells
Elimination of Waste
Constraint Management
Level Scheduling
Delphi PDP
Simulation for Flow Manufacturing
Value Stream
Lean Guidelines Equipment & Workstations
Synchronous Assist Devices
In addition to the How-to Chapters, there are 9 definitions listed in the back of the manual
The definitions shown in bold are more detailed than the others. While all the definitions are referenced in the How-to chapters, and understanding of these definitions is critical in process design.

6. Value Stream
Definition
Within Manufacturing, the Value Stream is defined as:
“The set of all specific actions required to bring a specific product through the physical transformation task proceeding from raw materials to a finished product in the hands of the customer.”
The concept of Value Stream is from the book Lean Thinking by James Womak, which is the book which inspired Battenburg to develop the Delphi Manufacturing System. In order to get lean, we need to align our manufacturing systems to focus on value streams.
The pure definition of value stream per Womak is to understand the flow of material and information from your suppliers to your manufacturing facility to your customer.
The DMS book however focuses on what goes on within the four walls of our manufacturing facility.

7. Value Stream Objectives
Understand the Definition and Purpose of Value Streams.
Understand Total Product Cycle Time.
Understand how to Analyze a Value Stream.
The concept of Value Stream is from the book Lean Thinking by James Womak, which is the book which inspired Battenburg to develop the Delphi Manufacturing System. In order to get lean, we need to align our manufacturing systems to focus on value streams.
The pure definition of value stream per Womak is to understand the flow of material and information from your suppliers to your manufacturing facility to your customer.
The DMS book however focuses on what goes on within the four walls of our manufacturing facility.

8. FM-05 Plant Wide Flow Plan
Material Flow in a
Process Oriented Layout
Material Flow in a
Product Oriented Layout
PLATE
SAW
RECEIVE
STORE
PAINT
TURN
GRIND
MILL
ASSY
WELD
RECEIVE
GENERAL SERVICES
PAINT
WELD
TURN
SAW
STORE
MILL
ASSY
GRIND
PLATE
After your value streams are identified, the next step is to identify the vision of the future plant layout.
While this is How-to chapter 5, it is important to consider this step prior to proceeding to changing layouts in the plant.
The goal to move away from Process Oriented layouts with numerous non-value added material movement and move to Product Oriented layouts with minimized material movement.

9. FM-02 Improving Flow Purpose Value Added / Non-Value Added
Reduce TP c/t Using Quality Network Leadtime Reduction:
Value Added / Non-Value Added
Process Flow Chart
Lead Time Reduction Graphic
Interdependent Element Analysis
How-to chapter 2 shows you how to reduce total product cycle time by using the QN leadtime reduction action strategy

10. Lead Time Reduction Graphic Tool
ORIGINAL
Electronic Version Available
(Developed by Global Manufacturing Systems Group)
Non-Value
Added
Value
Process 2
Process 1
Process 3
Wash
Process 4
PLANNED
IMPROVEMENTS
Non-Value
Added
Value
Process 1/2
Process 3/Wash
Process 4
Using the data gathered in the Process Flow Chart, the value added and non-value added times are graphed. The focus of improvements should be on reducing the non-value added activities.
POTENTIAL WITH
COMBINATION
Value
Added
Non-Value
Added
Process 1/2/3/Wash/4

11. Improving Flow - Implementation
Map out Process with VA / NVA time.
Ask WHY? WHY? WHY? WHY? WHY?
Generate Solutions considering all of the interdependent elements.
IMPLEMENT Improvements.
Ask the “5 whys” to get to the root cause of a problem

12. FM-03 Determine Resources
Purpose
This phase collects the data needed for flow process design and determines the machine and labor resources required to meet customer demand.

13. FM-03 Determine Resources
Objectives
Engage the team in the data gathering process.
Learn the tools of data gathering.
Capture work elements as completely as possible.

14. Takt Time Scheduled Runtime Takt Time = Total Customer Requirements
Time scheduled to run per day - breaks, lunches,
meetings, planned maintenance
Takt time is the pace at which all operations will be running
Takt time should be kept as pure as possible - no other factors such as downtime, changeover time, or quality losses should be factored into takt time.

15. Process Design for Flow - Strategies
Defining Flow Concepts
Planned Cycle Time
Defining Machine and Manual Operations
Defining Material and Information Flow
Finalize Layout
Formalizing Best Practices
The data gathered as detailed in the previous How-to chapter will be used in this section

16. Buffer Size Determination
One piece flow is the goal
Buffers only needed where an imbalance between operations exists - use formula
Strategically place buffers
Use standard quantities that fit in the operator envelope
While one piece flow is the goal, imbalances exist so buffers may need to be needed.
The manual has a formula for determining how much material is needed.
However, if the imbalances are complex, computer simulation may be necessary.

17. Validate Process Design / Finalize Layout
Validate and Optimize Process Design
Verify machine and operator cycle times are below Planned Cycle time.
Perform computer or manual simulation if necessary.
Formalize Layout
Exact location of equipment to scale.
Incorporate material flow.
Apply workplace organization.
Show any buffers or storage points.
The last portion of the design process is, of course, to finalize the layout.

18. Process Design for Flow - Implementation
Generate Concepts
Determine Planned Cycle Time
Define Operations and Draft PFP Chart
Map Material and Information Flow
Finalize Layout
Formalize Best Practices using PFP

19. FM-06 Financial Report Card
Focused on Identifying Potential Savings
Plant and Product
End Items / Product Mix
Product Cost Percentages (Mat’l/Labor/Overhead)
Inventory
Inv $ by RAW, WIP, FGI
Productivity
Uptime / Overtime / Staffing (Salaried & Hourly)
Quality
Scrap & Rework Costs / PPM
Floor Space
Flow Manufacturing
Total Product Cycle Time
Work Content, Non-value Added, Value Added

20. Six Sigma / Kaizen / Lean What does it all mean?
Essential Tools for Survival
Presented by:
Thom Marra
February, 2004

21. Six Sigma / Kaizen / Lean – Why does any of this matter?
The Old Testament
Customer Satisfaction
Quality (for its own sake)
Cost Reduction
Market Share
Market Research

22. Six Sigma / Kaizen / Lean – Why does any of this matter?
The New Testament
Customer Loyalty
Customer Retention
Zero Defections
Lifelong Customers

23. Culture - SWOT Strengths (core competencies) Weaknesses Opportunities
Threats
Different Strokes for different folks

24. People – Power in the People

25. Six Sigma vs. Kaizen

26. Kaizen A problem solving methodology A systems approach 7 QC tools
7 Management tools - Affinity diagram, Tree diagram, Process decision program chart (PDPC), Matrix diagram, Interrelationship digraph (I.D.), Prioritization matrices, Activity network diagram
Teams / everyone
Kaizen is a process oriented way of thinking. It rewards for improvement in the process & trusts (has faith) the results will follow.

27. Six Sigma
Six Sigma means something different to every company: a goal, a philosophy, a tool box, customer focus, a management system
3.4 defects per million opportunities
Stresses breakthrough improvement, not incremental improvement
Should be part of a larger business system
Emphasizes a very structured approach – DMAIC
Bottom-line driven

28. History of Six Sigma The statistical tools created < 1980’s
Zero defect concepts introduced – Crosby (late 70’s early 80’s)
The PC & statistical software – late 80’s
Methodology created (MAIC) (Motorola, Allied Signal, GE) – late 80’s early 90’s
Today – a metaphor for Business and Process Excellence

29. Six Sigma – Why Do Six Sigma?
Money
Customer Satisfaction
Quality
Impact on Employees
Growth
Competitive Advantage

30. Six Sigma – Why not Six Sigma?
The company has a strong, effective performance and process improvement effort in place
Current changes are already overwhelming
Potential gains aren’t sufficient to finance the investments

31. Six Sigma – What to Solve?
Project cost savings
Customer satisfaction deliverables
Processes
Problems
Targeted location
Design
Supplier processes

32. Six Sigma – Roles Executive Champion Process owner Master Black Belt
Green Belt
White Belt

33. Everyone else bring data.
Data driven
In God We Trust,
Everyone else bring data.

34. Data driven “Statistics is the art and science of
discovering what is at first difficult to
see and later becomes obvious.”
- Author unknown

35. Uncertainty
Omnipresent Variability
Leads to
Unbiquitous Uncertainty

36. Variability
Foolish consistency is the hobgobblins of little minds.

37. Statistics
Aesop’s fable of the “Fox and the Goat”

38. Six Sigma - DMAIC
Define
Measure
Analyze
Improve
Control

39. Y=f(x)

40. Six Sigma - DFSS DFSS – Design for Six Sigma
QFD – Quality Function Deployment
Robust Design and Process
FMEA – Failure Mode and Effects Analysis
Design for X
Special design tools