FINANCIAL ESSAY

profileJoss_Smitx01
SixSigma3.ppt

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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
LCL
UCL
Time Period
Hours / Unit
1.5
1
6
11
12
1
6
11
2
1
6
11
3
1
6
11
2
1
6
11
2
1
6
11
4
1
6
11
5
1
6
11
11.5
1
6
11
4
1
6
11
1
6
11
1
6
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
LCL
UCL
Time Period
Hours / Unit
1.5
1
6
11
12
1
6
11
2
1
6
11
3
1
6
11
2
1
6
11
2
1
6
11
4
1
6
11
5
1
6
11
11.5
1
6
11
4
1
6
11
1
6
11
1
6
11

Chart2

2 4 8 3 2
Nonconformity
Nonlegible
Vertical Registration
Horizontal Registration
Acceptable
Quantity

Chart3

6 6 10 10 5 5 8 8 4 4 4 4 2 2
Accounts
$

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

*

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

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  • 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
LCL
UCL
Time Period
Hours / Unit
1.5
1
6
11
12
1
6
11
2
1
6
11
3
1
6
11
2
1
6
11
2
1
6
11
4
1
6
11
5
1
6
11
11.5
1
6
11
4
1
6
11
1
6
11
1
6
11

Chart2

2 4 8 3 2
Nonconformity
Nonlegible
Vertical Registration
Horizontal Registration
Acceptable
Quantity

Chart3

6 6 10 10 5 5 8 8 4 4 4 4 2 2
Accounts
$

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

*

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

*

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

-

-

=

å

n

X

X

S

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

$

(

)

n

X

Z

s

m

-

=

n

3

(LCL)

Limit

Control

ower

L

(CL)

Limit

Control

n

3

(UCL)

Limit

Control

Upper

s

-

m

=

m

=

s

+

m

=

n

d

R

3

X

LCL

n

d

R

3

X

UCL

d

R

2

2

2

-

=

+

=

=

s

n

d

3

A

2

2

=

(

)

(

)

R

A

X

LCL

R

A

X

UCL

2

2

-

=

+

=

÷

÷

ø

ö

ç

ç

è

æ

=

s

=

s

=

m

2

3

2

d

R

d

r

R

d

r

R

D

d

d

3

1

R

R

d

d

3

R

LCL

R

D

d

d

3

1

R

R

d

d

3

R

UCL

3

2

3

2

3

4

2

3

2

3

=

÷

÷

ø

ö

ç

ç

è

æ

-

=

÷

÷

ø

ö

ç

ç

è

æ

-

=

=

÷

÷

ø

ö

ç

ç

è

æ

+

=

÷

÷

ø

ö

ç

ç

è

æ

+

=

3

4

D

R

LCL

D

R

UCL

=

=

R

(

)

n

P

1

P

p

n

D

P

-

=

s

=

2

Variance

n

m

Di

P

CL

å

=

=

(

)

(

)

n

P

1

P

3

P

LCL

n

P

1

P

3

P

UCL

-

-

=

-

+

=

n

U

u

n

C

U

=

s

=

2

Variance

m

Ui

U

CL

å

=

=

n

U

3

U

LCL

n

U

3

U

UCL

-

=

+

=