FINANCIAL ESSAY
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Six Sigma
Dr. Jose A. Morales
Meeting 3
MEASURE PHASE
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Measurements need to be identified and collected based on the defined goals of the project.
Key Process Output Variables (KPOV) that can be used are:
- Time series charts
- Productivity or process indicators
- Pareto Charts.
- Others.
Measure
Phase
*
| Resource | KPOV | Report | Study |
| Labor | Hours/Unit | Production report with worked hours | Time study - Average time |
Chart1
| 1 | 0 | 0 | 0 |
| 2 | 1 | 1 | 1 |
| 3 | 2 | 2 | 2 |
| 4 | 3 | 3 | 3 |
| 5 | 4 | 4 | 4 |
| 6 | 5 | 5 | 5 |
| 7 | 6 | 6 | 6 |
| 8 | 7 | 7 | 7 |
| 9 | 8 | 8 | 8 |
| 10 | 9 | 9 | 9 |
| 10 | 10 | 10 | |
| 11 | 11 | 11 |
Sheet1
| Time period | Hours/unit | LCL | UCL | |
| 0 | 1 | 6 | 11 | |
| 1 | 1.5 | 1 | 6 | 11 |
| 2 | 12 | 1 | 6 | 11 |
| 3 | 2 | 1 | 6 | 11 |
| 4 | 3 | 1 | 6 | 11 |
| 5 | 2 | 1 | 6 | 11 |
| 6 | 2 | 1 | 6 | 11 |
| 7 | 4 | 1 | 6 | 11 |
| 8 | 5 | 1 | 6 | 11 |
| 9 | 11.5 | 1 | 6 | 11 |
| 10 | 4 | 1 | 6 | 11 |
| 11 | 1 | 6 | 11 |
Sheet2
Sheet3
X
X
X
MBD00094704.unknown
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Measure
Phase
Resource KPOV Reports Study
Materials
Product Yield
Defects/unit
Waste %
Performance
Analysis
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Defects Distribution
To determine possible defects.
To compile data identifying defects within the sample.
To classify frequency / defects.
To draw frequency histogram or pareto diagram.
Measure
Phase
Chart1
| 1 | 0 | 0 | 0 |
| 2 | 1 | 1 | 1 |
| 3 | 2 | 2 | 2 |
| 4 | 3 | 3 | 3 |
| 5 | 4 | 4 | 4 |
| 6 | 5 | 5 | 5 |
| 7 | 6 | 6 | 6 |
| 8 | 7 | 7 | 7 |
| 9 | 8 | 8 | 8 |
| 10 | 9 | 9 | 9 |
| 10 | 10 | 10 | |
| 11 | 11 | 11 |
Chart2
| 2 | 4 | 8 | 3 | 2 |
Chart3
| 6 | 6 | 10 | 10 | 5 | 5 | 8 | 8 | 4 | 4 | 4 | 4 | 2 | 2 |
Sheet1
| Time period | Hours/unit | LCL | UCL | |||||||
| 0 | 1 | 6 | 11 | |||||||
| 1 | 1.5 | 1 | 6 | 11 | Nonconformity | 2 | 6 | |||
| 2 | 12 | 1 | 6 | 11 | Nonlegible | 4 | 6 | |||
| 3 | 2 | 1 | 6 | 11 | Vertical Registration | 8 | 10 | |||
| 4 | 3 | 1 | 6 | 11 | Horizontal Registration | 3 | 10 | |||
| 5 | 2 | 1 | 6 | 11 | Acceptable | 2 | 5 | |||
| 6 | 2 | 1 | 6 | 11 | 5 | |||||
| 7 | 4 | 1 | 6 | 11 | 8 | |||||
| 8 | 5 | 1 | 6 | 11 | 8 | |||||
| 9 | 11.5 | 1 | 6 | 11 | 4 | |||||
| 10 | 4 | 1 | 6 | 11 | 4 | |||||
| 11 | 1 | 6 | 11 | 4 | ||||||
| 4 | ||||||||||
| 2 | ||||||||||
| 2 |
Sheet2
Sheet3
X
X
X
MBD00094704.unknown
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Quality control charts: To identify the equipment trends.
Process parameter charts: To establish relationship with performance.
Capacity Analyses: To determine expected goals and action plans.
Measure
Phase
| Resource | KPOV | Report | Study |
| Equipment | Downtime DT% Hours / Shift Or Hours / Day | Machine Downtime Tracking Report | Downtime Study |
*
- Cyclical cost: Volume’s function.
- Cost tendency to keep them fixed.
| Resource | KPOV | Report | Study |
| Overhead (Currency) | Financial Accounts | Financial Statements | % Contribution |
Chart1
| 1 | 0 | 0 | 0 |
| 2 | 1 | 1 | 1 |
| 3 | 2 | 2 | 2 |
| 4 | 3 | 3 | 3 |
| 5 | 4 | 4 | 4 |
| 6 | 5 | 5 | 5 |
| 7 | 6 | 6 | 6 |
| 8 | 7 | 7 | 7 |
| 9 | 8 | 8 | 8 |
| 10 | 9 | 9 | 9 |
| 10 | 10 | 10 | |
| 11 | 11 | 11 |
Chart2
| 2 | 4 | 8 | 3 | 2 |
Chart3
| 6 | 6 | 10 | 10 | 5 | 5 | 8 | 8 | 4 | 4 | 4 | 4 | 2 | 2 |
Sheet1
| Time period | Hours/unit | LCL | UCL | |||||||
| 0 | 1 | 6 | 11 | |||||||
| 1 | 1.5 | 1 | 6 | 11 | Nonconformity | 2 | 6 | |||
| 2 | 12 | 1 | 6 | 11 | Nonlegible | 4 | 6 | |||
| 3 | 2 | 1 | 6 | 11 | Vertical Registration | 8 | 10 | |||
| 4 | 3 | 1 | 6 | 11 | Horizontal Registration | 3 | 10 | |||
| 5 | 2 | 1 | 6 | 11 | Acceptable | 2 | 5 | |||
| 6 | 2 | 1 | 6 | 11 | 5 | |||||
| 7 | 4 | 1 | 6 | 11 | 8 | |||||
| 8 | 5 | 1 | 6 | 11 | 8 | |||||
| 9 | 11.5 | 1 | 6 | 11 | 4 | |||||
| 10 | 4 | 1 | 6 | 11 | 4 | |||||
| 11 | 1 | 6 | 11 | 4 | ||||||
| 4 | ||||||||||
| 2 | ||||||||||
| 2 |
Sheet2
Sheet3
X
X
X
MBD00094704.unknown
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VALUE STREAM MAPPING
Definition: The process of identifying charting the flows of information, processes, and physical goods across the entire supply chain from the raw material supplier to the customer.
Description: A basic planning tool for identifying wastes, designing solutions and communicating the utilization of resources through the visualization of materials and information flows. Similar concepts used for this purpose are the process flow chart, process map and others. Help to identify process that are adding value to the product and process where waste is out of control.
Ref: Ken Dailey
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Value Stream Mapping Example:
Customer
Sales
Production
Control
Parts
Supplier
Production
Shipping
Accounting
Purchase
Order
Sales Order
Purchase
Order
Production
Order
Payment
Invoice
Parts
Product
Shipping
Order
Shipment
A
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Ref: Ken Dailey
Production
A
Processing
Packaging
Shipping
Warehouse
Receiving
Warehouse
PRODUCTION PROCESS
B
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Ref: Ken Dailey
Packaging
B
Start
Screening
Scrap or
Rework
Fill
container
Inspection
Labeling
container
Inspection
Case
Packing
Inspection
Palletizing
Ship.
Scrap or
Rework
C
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Ref: Ken Dailey
Transfer Product
Warm Up The System
Load Labels
Inspect Labeling Process
Rework
Labeling
container
C
PROCESS FLOW CHART
Job: __________________ Date: __________
__________________ Analyst: __________
__________________ Page: __________
Process Description Process Symbols
Set Labeler Machine
Run the Labeler Machine
Adjust Labeler
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Ref: Ken Dailey
Process Description Process Symbols
Set Labeler Machine
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The normal Z variable under the Central Limit Theorem is based on the following formula.
Quality Control
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99.9%
Control Chart
UCL
LCL
CL = μ
3σ
3σ
*
So, we have:
We could also use:
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R Chart
The central value of the Chart R will be . And the control limits
will be given by:
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P Chart
Where: D is number of defectives units
m is number of samples
n is sample size
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U Chart
Where: C is number of total defects
m is number of samples
n is sample size
0123456789101112
Time Period
Hours /
Unit
X
LCL
UCL
(
)
1
2
-
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=
å
n
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i
Units
In
Out Units
Input
Output
=
Units
Total
Defects
Total
Units
In
units
Out
1
Input
Output
1
-
=
-
Nonlegible
Vertical
Registration
Horizontal
Registration
AcceptableNonconformity
Quantity
PlanCurrent
Accounts
$
(
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ower
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(
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Variance
n
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(
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LCL
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m
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