Premium Reduction & Delivery Improvement: Champion - Sponsor

D M A I C
Premium Reduction &

Delivery Improvement
Champion Sponsor
Tollgate Review
Contract
D M A I C
Project Title: Premium Reduction

Department
PC&L
Duration
August 2004 - February 2005
Sponsor:
Rachel Heidenreich
Team Members
Function
Total Months: 6
Champion: Marybeth Cunningham
Role
Eric Crump
Ken Dillon
Marne Cario
Chris Kushmaul
Jim Altier
Tom Catheline
William Katko
John Salerno
Donnell Conner
Black Belt Candidate

Green Belt Candidate
Green Belt Re-Certification
Project Coach
Manufacturing Support
Green Belt Re-Certification
PC&L Manager - Project Leader

PC&L Scheduler - Project Leader
PC&L General Supervisor
Master Black Belt
Master Black Belt
Shipping Supervisor
Quality Engineer
Tool Engineer
MFG Supervisor
Customer (internal/external):
internal: PC&L
CTQ addressed:
Premium / IPM (Internal & External)
Business Driver(s) Impacted:
Premium Cost Reduction / IPM Internal And
External Delivery Improvement
Project Scope:
In Scope - Reduction of all Premium from Pt 11
Preliminary Problem Statement:

Text: Plant has been experiencing high premium transportation over the past 2 years. 2003 premium was over $220,000 and 2004
premium is over $250,000 thru July. In addition to high premium, Plant 11 has experienced internal and external delivery issues to
several customers. Delivery Performance has created several concerns from the DCS Business Line because of the impact to their final
customers.
The goal of this project is to reduce Premium by 40% and reduce IPM by 45%
Aug
Define
actual
Measure
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
Tools Used
Contract / SIPOC / Graphs
actual
Process Mapping, Cause and Effect Diagram,

Data collection Plan, MSA
actual
DPMO/Capability, Hypothesis Testing/Root

Cause Analysis
Analyze
Improve
actual
Solution generate, Pilot on Department 1108,

Moods Median Test, Test for Equal Variance
Control
actual
Tollgate Review
Control and Response Plan
$200,000
$180,000
$1
83
,4
11
Plant Premium 200x Detail D M A I C
$160,000
$140,000
$120,000
$100,000
$80,000
$1
24
$6
4
$1
08
$2
00
$7
74
4
$1
,2
2
$20,000
$5
,5
8
$40,000
$1
1,
18
1
$1
9,
57
1
$60,000
$0
Behind
Schedule
Internal
Quality
Supplier
Quality
Trans /
Customs
Deliver
Miss
Late Entry Mislabeled Cust. Req /

Inv. Adj
Data was obtained from the Premium Web Site
Tollgate Review
Req /
Inventory
Adj.
Part Cert.
Delay
$250,000
$2
20
,0
19
Plant Premium 200x Detail D M A I C
$200,000
$150,000
$6
59
$3
00
$1
,1
1
2
$1
,6
1
0
$1
,8
5
$7
,3
3
$2
0,
49
2
$50,000
$100,000
Req /
Inventory
Adj.
Tool
Capacity
$0
Behind
Schedule
Trans /
Customs
Data
Processing
Engineering
Internal
Quality
Deliver Miss
Tollgate Review
Plant 200x Internal IPM D M A I C

9,
25
2
10,000
7,
65
5
9,000
8,000
7,000
4,
89
4
6,000
3,
83
4
5,000
2,
89
2
2,
16
9
2,
04
7
3,000
2,
50
7
4,000
Jan
Feb March April
27
23
9
1,000
26
1
2,000
0
May
June
July
Aug
Sept
Tollgate Review
Oct
Nov
Dec
YTD
3,500
3,
22
5
Plant 200x Internal IPM D M A I C
2,
08
9
2,
20
6
2,500
1,
59
6
2,000
1,
97
6
3,000
1,500
50
8
79
9
1,000
24
3
500
0
Jan
Feb
March
April
May
June
Tollgate Review
July
YTD
SIPOC
Process Name:
Process Owner:
Suppliers
Plant 11 Terminal Manufacturing Process

Plant 11 Premium Reduction Team
Inputs
Process
(Providers of the
required resources)
(Resources required by
the process)
Customer
Forecast
Pulls
Orders
PC&L
Production Schedules
Quality
PPAP
Tool Release
Press Release
Part Inspection (PPC)
Manufacturing
Production
Tool Room
Tool & Die Makers
Tools
Set - UP
Outputs
(Deliverables from
the process)
D M A I C
Customers
(Stakeholders who place the requirements on

the outputs)
Requirements
Parts Shipped on Time
Customer
Requirements
Forecast
Pulls (Internal)
Orders (External)
Scheduling
Manufacuturing
TERMINALS
Good Quality Parts
Right Quantities
Correctly Labeled
Tool Engineer
Support
Maintenance
Support
Change-over
Terminal Store
Matrial Handling
Shipping
Develop Store Goal
Suppliers
Raw Material
Tollgate Review
SHIP
from
OHIO
INTERNAL
Mexico
Mississippi
EXTERNAL
Lear
Yazaki
PS&G
Condumex
D M A I C
Plant Premium Reduction &

Measure
Date: 01 / 06 / 0x
Tollgate Review
Cause & Effect Diagram

PC&L
Manufacturing
(x) Mtl Movement

Delays
Information Systems
7
(x) Uptime
(x) Lack - Raw

Material
(x) Absenteeism
(x) Label
(x) Terminal Store

Picks
(x) Shipping
Patterns
1
(x) Lack - Order Fillers

1
(x) Press
Availability 4
(x) Operator
Training
(x) Scrap
6 Tool Capability
(Goal Changes)
(x) Unforseen
Orders/Pulls
(x) Increased Pulls
(x) Goal
Changes
(x)
Defective
Raw
Customer/Supplier
Tollgate Review
Labor
Resourcing/Job Ass
Changeover
Time
6
Mtce. Response
Time
6
Spare Tooling
Parts
4
6
Setup Times
(1 - Group w / Un-forcasted orders / pulls?)

(x) Pull Variations
Why do We have
missed/late
shipments?
Spare Equip.
Parts
Tool
3
Availability
(x) Labor
Allocation/Job
(x) Lack - Real

Time Info
(x) Critical Parts List
(x) Inventory
Visibility
(x) Care Insp.

Coverage
(x) Real Time Data
(x) Line Insp.

Coverage
(x) Partial Reels
D M A I C
Low Vol. & 4

Obsolete Parts
Make vs Buy
(Note comment from Red Tags?)

(x) FTQ
(x) PPAP
(1 - Group with FTQ?)
Issues Running 2
Precious Metal
Unplanned
3
Mtce. Downtime
Eng/Tool Room/Maint.
(x) Red Tags

Quality
Should add up to
84
Data Collection Plan
D M A I C
Measure
Time Period
Name of Factor:
Operator (1)
(2)
Trial
Part Number
(Y)
(X1)
(X2)
(X3)
(X4)
(X5)
Joe Bonneau
John Salerno
Joe Bonneau
Ken Dillion
Ken Dillion
John Salerno
Time to fill back

order
Uptime
Set up / Change
Over
Tool
Availability
Press Availability
Spare Tooling Part

Availability
Is an acceptable
press available to
the run part?
The time it takes to

get spare toolign
when parts are not
available
Dicrete
Continuous
Operational Definition
The uptime of the

press while the back
order part number is
in the machine
Type of Data:
Continuous
Specific to:
P/N's
Tollgate Review
Time to convert
good part to good
part
Sitting on
ready rack
Continuous
Discrete
D M A I C
Measure
(Y)
Time Period
(X6)
Joe Bonneau Donnell Conner

Name of Factor:
Operational Definition
Type of Data:
Specific to:
P/N's
Tollgate Review
Operator (1)
(2)
Trial
Part Number
Time to fill back

Maintenance
order
Response Time
(X7)
(X8)
(X9)
(X10)
John Salerno
Marne Cario
Marne Cario
Bill Katko
Tool & Die Response

Time
Unforeseen
Orders / Pulls
Low Volume
Red Tag
Is this part
number low
Volume?
Is this part red

tag or care?
Time from
The difference in time
Difference
when a call is
between when a tool
between the
placed to the has failed & marked on forecast & the
time the work the board & when the
actual pull
is complete
machine is running
Continuous
Continuous
Continuous
Rounded to the hour Build
area
checked
1118
Discrete
Discrete
First time?
Quality?
Gage R & R Study
D M A I C
Repeatability
Within Appraisers
Appraiser
#
Inspected
# Matched
% Percent
95.0% CT
21
30
30
100
(90.5 , 100)
30
29
96.7
(82.8 , 99.9)
Appraiser agrees with him / herself trials
Reproducibility
Between Appraisers
# Inspected
# Matched
% Percent
95.0% CT
30
29
96.7
(82.8 , 99.9)
All appraisers assessments agree with each other
Tollgate Review
D M A I C
Plant Premium Reduction &

Analyze
Date: 03 / 24 / xx
Tollgate Review
Descriptive Statistics
D M A I C
Variable: (Y)
USL = 2 Days
Time a Part is on Backorder (days)

Anderson-Darling Normality Test
A-Squared:
P-Value:
DPMO = 1.4
sigma process
10
13
95% Confidence Interval for Mu
5.269
0.000
Mean
StDev
Variance
Skewness
Kurtosis
N
3.18609
2.89036
8.35419
1.32074
1.59636
115
Minimum
1st Quartile
Median
3rd Quartile
Maximum
0.3000
1.0000
2.3000
5.4000
14.0000
95% Confidence Interval for Mu

2.6522
1.5
2.5
3.5
95% Confidence Interval for Sigma

2.5589
95% Confidence Interval for Median
3.7200
3.3212
95% Confidence Interval for Median

1.6000
2.7000
The median time for parts on backorder is 2.3 days. With a target of 2 days
our process defect rate is 53%
Tollgate Review
Descriptive Statistics
D M A I C
Run Chart for (Y)

14
12
10
(Y)
8
6
4
2
0
10
60
110
Observation
Number of runs about median:
Expected number of runs:
Longest run about median:
Approx P-Value for Clustering:
Approx P-Value for Mixtures:
58.0000
58.4957
10.0000
0.4630
0.5370
Number of runs up or down:

Expected number of runs:
Longest run up or down:
Approx P-Value for Trends:
Approx P-Value for Oscillation:
76.0000
76.3333
3.0000
0.4704
0.5296
Our process is stable with no clustering, mixtures, trends, and oscillations

Tollgate Review
Identify variation Sources

Factor
X1
Name
Press Uptime
Data Type
Analysis Tools
D M A I C
Statistically Significant
Continuous
Simple Linear Regression

Mood's Median Test
Test for Equal Variances
No

Mood's Median Test
No
X2
Set Up / Change Over
Continuous
X3
Tool Availability
Discrete
X4
Press Availability
Discrete
X5
Spare Tooling Part

Availability
Discrete
X6
Mantenance Response
Time
Mood's Median Test

Mood's Median Test
Mood's Median Test
No
No
No
Continuous

Mood's Median Test
Yes - Difference in Center
X7
Tool & Die Response

Time
Continuous

Yes - Difference in Center and
Mood's Median Test
variation
X8
Orders vs. Pulls
Discrete
X9
Low Volume
Discrete
X10
Red Tag or Care
Discrete
X11
Start-Stop Part
Discrete
Tollgate Review
Mood's Median Test

Mood's Median Test
Mood's Median Test
Mood's Median Test
No
No
No
No
D M A I C

X1 - Uptime
Fitted Line Plot
Y1 = 4.632 - 0.04227 X1
30
S
R-Sq
R-Sq(adj)
25
3.69418
3.7%
2.9%
Regression Analysis: Y1 versus X1 (Uptime)

The regression equation is
Y1 = 4.632 - 0.04227 X1
Y1
20
S = 3.69418
15
R-Sq = 3.7%
R-Sq(adj) = 2.9%
Analysis of Variance
10
Source
Regression
Error
Total
DF
1
120
121
SS
62.52
1637.63
1700.16
MS
62.5237
13.6470
F
4.58
P
0.034
0
0
10
20
30
40
50
X1
60
70
80
90
Data analysis shows that machine uptime and time to fill a backorder do not
have a strong correlation not statistical root cause
Tollgate Review
D M A I C
X2 Set Up / Change Over

Fitted Line Plot
Y1 = 3.108 + 0.08494 X2
S
R-Sq
R-Sq(adj)
14
12
2.95590
0.7%
0.0%
Mood Median Test: Y speed versus x2 speed
Y1
10
Mood median test for Y speed

Chi-Square = 0.02
DF = 1
x2 speed
Long
Short
6
4
2
N<=
10
49
N>
9
47
Median
2.30
2.30
P = 0.899
Q3-Q1
5.60
3.90
Individual 95.0% CIs

----+---------+---------+---------+-(--------*------------------------)
(-----*-)
----+---------+---------+---------+-1.5
3.0
4.5
6.0
Overall median = 2.30
0
0
8
X2
10
12
14
Mood Median Test: Y versus X2

Mood median test for Y
Chi-Square = 0.09
DF = 1
X2
No
Yes
N<=
34
24
N>
35
22
Median
2.40
2.15
Q3-Q1
4.40
4.10
P = 0.761
--+---------+---------+---------+---(-------------------*------------)
(--------------*-----------------)
--+---------+---------+---------+---1.50
2.00
2.50
3.00
Data analysis shows that Set Up / Change Over Time and time to fill a
backorder have no correlation not statistical root cause
Tollgate Review
D M A I C
X3 Tool Availability
Mood Median Test: Y1 versus X3
Mood median test for Y1
Chi-Square = 0.00
DF = 1
Boxplot of Y1 vs X3
30
X3
N
Y
25
Y1
20
N<=
7
55
N>
7
53
Median
2.35
2.30
Q3-Q1
5.63
4.30
P = 0.948
---+---------+---------+---------+--(--------*--------------------------)
(---*--)
---+---------+---------+---------+--1.5
3.0
4.5
6.0
15
Test for Equal Variances: Y1 versus X3

10
95% Bonferroni confidence intervals for standard deviations
X3
N
Y
0
N
N
14
108
Lower
2.12450
3.32853
StDev
3.06088
3.84031
Upper
5.31933
4.52931
Y
X3
F-Test (normal distribution)

Test statistic = 0.64, p-value = 0.361
Levene's Test (any continuous distribution)
No difference in either the center (median) or spread (variation) between tool

Available yes vs. no not statistical root cause
Tollgate Review
D M A I C
X4 Press Availability
Chi-Square = 1.11
DF = 1
Boxplot of Y1 vs X4
30
X4
N
Y
25
Y1
20
N<=
22
40
N>
16
44
Median
1.65
2.40
Q3-Q1
5.00
4.40
P = 0.293
---+---------+---------+---------+--(---------*-------------------)
(-----------*------------)
---+---------+---------+---------+--1.20
1.80
2.40
3.00
15
A 95.0% CI for median(N) - median(Y): (-1.70,0.60)
10
X4
N
Y
N
38
84
Lower
4.11245
2.47510
StDev
5.18848
2.90730
Upper
6.98004
3.51331
Y
X4

The p values are greater than .05; we accept the null hypothesis ~ there is
no difference in backorder time when a press is available yes vs. no
Tollgate Review
D M A I C
X5 Spare Tooling Part

Availability
Chi-Square = 0.70
DF = 1
Boxplot of Y1 vs X5
14
X5
N
Y
12
N<=
2
54
N>
4
52
Median
4.30
2.30
Q3-Q1
5.83
4.40
10
P = 0.401
-------+---------+---------+--------(-------------*--------------------)
(--*-)
-------+---------+---------+--------2.5
5.0
7.5
Y1
8
A 95.0% CI for median(N) - median(Y): (-2.00,9.70)
X5
N
Y
0
No
N
6
106
Lower
2.34663
2.46978
StDev
4.00221
2.85313
Upper
11.4501
3.3707
Yes
X5

Although the medians appear different, there is not enough data to statistically
conclude there is a difference there were only six samples when spare
tooling was not available
Tollgate Review
D M A I C
X6 Maintenance Response
Time
Mood Median Test: Y1 versus X6 > 4
Boxplot of Y1 vs X6 > 4

Chi-Square = 8.35
DF = 1
14
X6 > 4
No
Yes
12
10
8
N<=
53
5
N>
40
17
Median
1.70
5.70
P = 0.004
Q3-Q1
3.00
4.73

-----+---------+---------+---------+(---*--)
(---------------*-----)
-----+---------+---------+---------+2.0
4.0
6.0
8.0
Y1
Test for Equal Variances for Y1
F-Test
Test Statistic
P-Value
No
Lev ene's Test
X6 > 4
Test Statistic
P-Value
Yes
0
No
Yes
2.0
X6 > 4
2.5
3.0
3.5
4.0
4.5
95% Bonferroni Confidence Intervals for StDevs
5.0
X6 > 4
No
Yes
Statistical Root Cause with a p-value of .004 we reject the null hypothesis;
there is a difference in times. When the maintenance call takes over 4 hours
then the backorder time goes up significantly!!
0
Y1
Tollgate Review
0.67
0.197
10
12
14
2.41
0.124
D M A I C
X7 Tool & Die Repair Time

Mood Median Test: Y1 versus X7 > 4
Chi-Square = 11.72
DF = 1
P = 0.001
Boxplot of Y1 vs X7 > 4
X7 > 4
No
Yes
14
N<=
22
36
N>
6
51
Median
1.00
2.70

-----+---------+---------+---------+(----*---)
(---*--------)
-----+---------+---------+---------+1.0
2.0
3.0
4.0
Q3-Q1
1.53
5.00
12
10
8
Y1
F-Test
Test Statistic
P-Value
No
Lev ene's Test
X7 > 4
6
4
Test Statistic
P-Value
Yes
2
2.0
2.5
3.0
3.5
0
No
4.0
Yes
X7 > 4
X7 > 4
No
Yes
10
12
14
Statistical Root Cause with a p-value of .001 we reject the null hypothesis;
there is a difference in times. When the maintenance call takes over 4 hours
then the backorder time goes up
Y1
Tollgate Review
1.02
0.897
3.63
0.059
D M A I C
X8 Orders vs. Pulls

Boxplot of Y1 vs X8

Chi-Square = 0.01
DF = 1
14
X8
No
Yes
12
N<=
28
30
N>
28
29
Median
2.35
2.30
Q3-Q1
3.55
4.40
10
8
P = 0.928
---+---------+---------+---------+--(----------*--)
(---------------*-----------------)
---+---------+---------+---------+--1.40
2.10
2.80
3.50
Y1

F-Test
Test Statistic
P-Value
No
X8
Lev ene's Test
Test Statistic
P-Value
Yes
No
Yes
2.0
X8
2.5
3.0
3.5
4.0
X8
No
Yes
10
12
14
Y1
No difference in either the center (median) or spread (variation) when we ask

If the pull was greater than the order, yes vs. no not statistical root cause
Tollgate Review
0.76
0.299
1.21
0.273
D M A I C
X9 Low Volume
Boxplot of (Y) vs (X9)

Chi-Square = 1.01
DF = 1
14
X9
N
Y
12
N<=
53
9
N>
53
5
Median
2.35
1.85
Q3-Q1
4.10
6.98
(Y)
10
P = 0.315
-------+---------+---------+--------(---*-)
(-----*--------------------------)
-------+---------+---------+--------2.0
4.0
6.0
Test for Equal Variances for (Y)
F-Test
Test Statistic
P-Value
Lev ene's Test
(X9)
Test Statistic
P-Value
0
N
(X9)
4
5
6
7
(X9)
10
12
14
(Y)

If the part is low volume, yes vs. no not statistical root cause
Tollgate Review
0.35
0.007
1.17
0.282
D M A I C
X10 Red Tag or Care

Boxplot of Y1 vs X10

Chi-Square = 1.31
DF = 1
14
X10
No
Yes
12
N<=
21
37
N>
15
42
Median
1.85
2.40
Q3-Q1
4.30
4.40
10
8
P = 0.253
------+---------+---------+---------+
(-----------*-------------)
(----------*------------)
------+---------+---------+---------+
1.40
2.10
2.80
3.50
Y1
6
F-Test
Test Statistic
P-Value
No
Lev ene's Test
X10
2
0
Test Statistic
P-Value
Yes
No
Yes
X10
2.50
2.75
3.00
3.25
3.50
3.75
4.00
4.25
X10
No
Yes
8
Y1
10
12
14

If the material had any pieces in redtag, yes vs. no not statistical root cause
Tollgate Review
1.17
0.567
0.01
0.941
D M A I C

X11 Start/Stop Part
Mood Median Test: (Y) versus X12
Mood median test for (Y)
Chi-Square = 3.28
DF = 1
Boxplot of (Y) vs X12

14
X12
No
Yes
12
N<=
29
29
N>
19
38
Median
1.50
2.40
Q3-Q1
4.60
4.40
10
P = 0.070
---+---------+---------+---------+--(-------*--------------------------)
(-----------*---------)
---+---------+---------+---------+--1.20
1.80
2.40
3.00
(Y)
8
Test for Equal Variances for (Y)
F-Test
Test Statistic
P-Value
No
Lev ene's Test
X12
Test Statistic
P-Value
Yes
0
No
2.0
Yes
2.5
3.0
3.5
4.0
X12
X12
No
Yes
10
12
14
(Y)

If this PN was a start/stop part, yes vs. no not statistical root cause
Tollgate Review
1.49
0.131
0.51
0.476
Analyze Take - Aways
D M A I C
Maintenance Response Time is a significant contributor to

Time to Fill Back Order (Y)
Tool & Die repair time is a significant contributor to Time to

Fill Back Order (Y)
Both Maintenance Response Time and Tool & Die Repair

Time impact Uptime but Uptime alone is not a significant
factor
Other potential causes (Xs) did not show significant impact

to Time to Fill Back Order
This statistical data indicates that in order to reduce the Time

to fill a Back Order, which potentially leads to premium, we
must reduce the Maintenance Response Time and the Tool
& Die Repair Time
Tollgate Review
Next Steps
D M A I C
Continue in the Improve Phase
Develop solutions to improve Maintenance Response Time

and Tool & Die Repair Time
Collect Data from the Recommended improvement plan
Evaluate if corrective actions reduce or eliminate the impact

of Maintenance Response Time and Tool & Die Repair Time
on the Time to Fill a back Order / Premium
Tollgate Review
D M A I C
Plant Premium Reduction

& Delivery Improvement
Improve / Control
Date: 05 / 05 / xx
Tollgate Review
Develop Solutions
-
Tool & Die Repair Time Solutions

-
D M A I C
Dedicated Tool & Die support on all Shifts

Use the Andon System to improve call priorities
Die Maker inspects and releases parts in place of a traditional release person
Document all Die changes in the log book
Dedicated tool makers for different die families
Maintenance Response Time Solutions

-
Dedicated Machine and Maintenance Repair support and on all shifts

Use the Andon System to improve call priorities
PC&L notifies maintenance when a part goes on back order
Maintenance Supervisor copied on all critical parts
Tollgate Review
D M A I C
Test Solutions - Pilot

Results for: 1108 vs. 1119
Mood Median Test: Y
Mood median test for Y
Chi-Square = 60.60
DF = 1
Subscripts
1119
1108
N<=
62
789
N>
150
574
Median
2.40
1.40
P = 0.000
Q3-Q1
2.68
1.80

+---------+---------+---------+-----(-------*-----)
(-------*
+---------+---------+---------+-----1.00
1.50
2.00
2.50

Test for Equal Variances for Y
F-Test
Subscripts
A 95.0% CI for median(1119) - median(1108): (0.60,1.30)
Test for Equal Variances: Y

95% Bonferroni confidence intervals
N
212
1363
Lower
2.01797
1.82901
StDev
2.23877
1.90766
1119

1.38
0.001
Lev ene's Test

Test Statistic
P-Value
1108
1.8
Upper
2.51152
1.99312
Subscripts
Subscripts
1119
1108
Test Statistic
P-Value
1.9
2.0
2.1
2.2
2.3
2.4
16.49
0.000
2.5
1119
1108
10
15
20
25
The p values are less than .05; we reject the null hypothesis ~ there is a
difference in backorder. The solutions have impacted both variation and median
Tollgate Review
New Capability Analysis
D M A I C
Capability Analysis
Characteristic
Defs
Units
Opps
TotOpps
DPU
DPO
PPM
ZShift
ZBench
1108
414
1363
1363
0.304
0.303742
303742
1.500
2.014
1119
117
212
212
0.552
0.551887
551887
1.500
1.370
Total
531
0.337143
337143
1.500
1.920
1575
Applying the goal of less than 2 days on backorder the solutions implemented
improvement our process from 1.4 sigma to a 2 sigma process.
Tollgate Review
Timeline for Full Solution Implementation
D M A I C
Department 11xx was the first module installed.
Implementation of the remaining modules that will utilize

these solutions are as follows:
- Department 11xx will be completely installed by 5/15/xx
- Department 11xx (Low Volume) will be completely installed by 10/xx
- Department 11xx will be replaced by 11xx (8/1/xx)
- Department 11xx will be replaced by 11xx (6/1/xx)
Tollgate Review
Financial Impact
-
D M A I C
January April of 200x compared to January April 200x indicates a

reduction in premium of 16%, 80%, 84.5% and 31.4% respectively.
- This equates to a 61.9 % reduction in premium over the same four month period.
Over the last two months departments without the improvements have
accounted for significantly more premium than department 110x.
- March
- April
Dept 110x
18.0 %
27.8 %
Non-Improved Depts
52.0 % (1119)
58.9 % (1116)
Our implemented solutions improved our process by 30 %

- From 1.4 Sigma to a 2.0 Sigma
Our implemented solutions reduced our median time to fill a back order
by 41.6 %
- From a median of 2.4 to a median of 1.4
Based on these improvements we conclude that the plant 11 premium

will be reduced by approximately 34.0 %
Based on 200x premium of $308,940, the financial impact will be a

reduction in premium of $105,040.00 per year.
Tollgate Review
Control Plan
-
D M A I C
Plant xx team should monitor Maintenance Response Time

and tool & Die Repair time.
- This should be monitored on a monthly basis.
If Maintenance Response Time or Tool & Die Repair Time is

greater than 4 hours, plant should investigate root cause
Need to determine responsible person (s) to monitor these

issues
System generated reports for Maintenance Response Time

and Tool & Die Repair Time will support in this effort
Tollgate Review
Intangibles
-
D M A I C
Breaking down old barriers and avoiding finger-pointing by

using real data collected by a true cross-functional team
- Excellent cross functional team that was represented by manufacturing, PC&L,
tool engineer, Quality, IT, Terminal Store Supervisor and Manufacturing & PC&L
Master black belts
Dispelled many theories about causes for premium and

allowed us to focus on real root cause
Provided additional data for the manufacturing team to focus

on the real causes for premium and other machine down
time / Uptime issues
Processes across all functions are interrelated but not all

controlled by the plant manager
- Good cross functional support is required for the plant to be successful
Excellent job by IT support to provide accurate real time

data.
- Every black belt project should have an IT person on the team
Excellent data collection and support by all team members.
Tollgate Review
D M A I C
Back-up
Tollgate Review
Plant xx- Dept. xxxx Premium in 200x D M A I C

$1
4,
81
4
$16,000
$1
1,
42
0
$14,000
$12,000
$8,000
7
$6
,8
3
$6
,8
3
$10,000
$1
,5
7
$5
12
$1
,5
5
$2,000
$6
78
4
$2
,6
9
$2
,3
8
0
$2
,5
8
$4,000
$3
,6
0
$6,000
Tollgate Review
em
be
r
D
ec
N
ov
em
be
r
er
ct
ob
O
Se
p
te
m
be
r
t
A
ug
us
Ju
ly
Ju
ne
ay
M
A
pr
il
ar
ch
M
ra
ry
Fe
bu
Ja
nu
a
ry
$0
Plant xx- Dept. xxxx Premium in 200x D M A I C
$1
,8
4
$2
,1
6
$2,500
$2,000
$1
,0
5
$1,500
$4
56
$1,000
$500
$0
January Feburary
March
April
Tollgate Review

Premium Reduction & Delivery Improvement: Champion - Sponsor

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D M A I C

Premium Reduction &

Project Title: Premium Reduction

Black Belt Candidate

PC&L Manager - Project Leader

Preliminary Problem Statement:

Process Mapping, Cause and Effect Diagram,

DPMO/Capability, Hypothesis Testing/Root

Solution generate, Pilot on Department 1108,

Control and Response Plan

Plant Premium 200x Detail D M A I C

Late Entry Mislabeled Cust. Req /

Data was obtained from the Premium Web Site

Plant Premium 200x Detail D M A I C

Data was obtained from the Premium Web Site

Plant 200x Internal IPM D M A I C

Feb March April

Data was obtained from the Premium Web Site

Plant 200x Internal IPM D M A I C

Data was obtained from the Premium Web Site

Plant 11 Terminal Manufacturing Process

(Stakeholders who place the requirements on

Plant Premium Reduction &

Cause & Effect Diagram

(x) Mtl Movement

(x) Lack - Raw

(x) Terminal Store

(x) Lack - Order Fillers

(x) Increased Pulls

(1 - Group w / Un-forcasted orders / pulls?)

(x) Lack - Real

(x) Critical Parts List

(x) Care Insp.

(x) Real Time Data

(x) Line Insp.

(x) Partial Reels

Low Vol. & 4

(Note comment from Red Tags?)

(x) Red Tags

Data Collection Plan

Time to fill back

Spare Tooling Part

The time it takes to

The uptime of the

Data Collection Plan

Joe Bonneau Donnell Conner

Time to fill back

Tool & Die Response

Is this part red

Gage R & R Study

Appraiser agrees with him / herself trials

All appraisers assessments agree with each other

Plant Premium Reduction &

Time a Part is on Backorder (days)

95% Confidence Interval for Mu

95% Confidence Interval for Mu

95% Confidence Interval for Sigma

95% Confidence Interval for Median

95% Confidence Interval for Median

Run Chart for (Y)

Number of runs up or down:

Our process is stable with no clustering, mixtures, trends, and oscillations