six sigma project

1LEAN SIX SIGMA PROJECT

By:Hossam Mostafa

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LEAN SIX SIGMA PROJECT 2

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Hikma Pharma is a pharmaceutical company. Its plant is located in 6th of October city. It produces and markets a wide range of innovative products covering the main therapeutic areas.The products are classified as shown in the pie chart below:

AnalgesicAntibioticsAntifungalsGIT Prep.Paediatric Prep .VitaminsMiscellaneousHeart Prep .Topical Prep .



There are two main blistering and packing lines in the packaging area in Hikma plant, these lines are named Line I and Line II.Line II available working hours per month are 180 hours. These hours are divided between setup, run, clean, change over, breakdown and no schedule.Every month the utilization of line one is calculated by using the following formula: (total setup + total run + total clean + total change over) *(100/180)


5

Evaluation of projects for selection:

Strategic impact

Financial revenue Expenses Potential

Resistance Duration Sum Weight

Strategic impact 1 0.5 0.25 3 0.33 5.08 0.12

Financial revenue 1 1 0.25 3 0.25 5.5 0.13

Expenses 4 4 1 4 4 17 0.40Potential

Resistance 0.33 0.33 0.25 1 0.25 2.16 0.05

Duration 3 4 0.25 4 1 12.25 0.2941.99 1.00

LEAN SIX SIGMA PROJECT



Criteria Weight ↑ Utilization % ↑ Productivity % ↓ Rework

1 Strategic impact 0.12 4 4 32 Financial revenue 0.13 4 4 23 Expenses 0.40 4 2 2

4 Potential Resistance 0.05 4 4 2

5 Duration 0.29 2 2 2

Total project score (Without weight)

18 16 11

Total project score (With weight)

3.42 2.61 2.12


7

Mission Statement:Our company's major packaging line (CAM II) is utilized by 56.2% in the year 2013. Increase utilization percentage in the year 2014.

Six Sigma Improvement Project Charter Project name

Improve machine utilization

Mission Statement

Our company's major packaging line (CAM II) is utilized by 56.2% in the year 2013. Increase utilization percentage in the year 2014.

Team Members

1. QA Supervisor2. Production Supervisor3. Production technician4. Maintenance technician5. QC analyst6. Purchasing specialist

Resources

•The team is authorized to collect relevant data, discuss the problem with those involved with it.•Team members should have 4 hours per week available for the project.•The team has access to the resources it needs to carry out the mission.•Arrangements are spelled out for obtaining additional resources and policy support if the project proves to be beyond the resources already at the team disposal.

LEAN SIX SIGMA PROJECT



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Utilization percentage of blistering line II in the year 2013:

1- Operational definitions:

•"Utilization percent": after discussion team members agreed that utilization percent means number of hours of run, clean, change over and setup hours divided by theoretical hours that the machine supposed to work in case of no defect status (180 hours).

•"Labor overtime hours": these are working hours that are performed at non official time, e.g. in vacancies or after official leave hours.

•"Day hours": these are the actual working hours during day time (i.e. 8:00 – 12:00 & 12:30 - 16:30).



Month Utilization percentJanuary 56.9%

February 31.8%March 50.7%April 43.8%May 87.0%June 63.6%July 26.3%

August 70.3%September 54.0%

October 74.0%November 44.4%December 71.0%

2- Symptoms identification & measure:•The team decided to use production monthly output report and data posted on SAP in order to measure utilization percent per month.•Collective data of utilization percent for each month during year 2013 was viewed, the following trend shows the results obtained.



Utilization percent year 2003

56.9%

31.8%

50.7%43.8%

87.0%

63.6%

26.3%

70.3%

54.0%

74.0%

44.4%

71.0%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Month

Util

izat

ion

perc

ent

Utilization percent 2013



PLANNING MATERIALS AND

RESOURCES

ORDER ISSUEING

PROCESS ORDER PRODUCTION

PRODUCTION PROCESS ORDER

MATERIALS PREPARATION

PACKAGING COMPONENTS W.H

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Issue work order

Plan

ning

Revise work order, check

validity

Receive work order

Prepare needed materials

Receive & revise lot no.

& qty.

Machine run and setup

FN Product

QA

Prod

uctio

nW

HPr

oduc

tion

Production

Process map

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Month Utilization percent January 0.6

February 0.3March 0.5April 0.4May 0.9June 0.6July 0.3

August 0.7September 0.5

October 0.7November 0.4December 0.7

MIN 0.3MAX 0.9

AVERAGE 0.6σ 0.2

AV-3σ 0.0AV+3σ 1.2



Serial ContributorsNumber of breakdown

hoursPercentage Cumulative

percentage1 PVC 27.4375 20.591% 20.591%2 Air 21.75 16.323% 36.914%3 Carton m/c 20.9375 15.713% 52.627%4 Sorting 16 12.008% 64.634%5 m/c setting 13.4375 10.084% 74.719%6 Waiting material 6.75 5.066% 79.784%7 Aluminum 6.25 4.690% 84.475%8 Sealing 4.1875 3.143% 87.617%9 Blister m/c 4 3.002% 90.619%

10 Others 3.75 2.814% 93.433%11 Maintenance 2.5 1.876% 95.310%12 Administrative 2.5 1.876% 97.186%13 Calibration 2.25 1.689% 98.874%14 electricity 1.5 1.126% 100.000%

Pareto analysis was constructed to show the contributors of Break down hours of Line II and the vital few contributors that affect Line II breakdown



PVC Air Carton m/c Sorting m/c setting Waiting material Aluminum Sealing Blister m/c Others Maintenance Administrative Calibration electricity

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Pareto Analysis

0

20

40

60

80

100

120

PVC Air Carton m/c Sorting meshwar Waitingmaterial

Aluminum Sealing Blister m/c Others Maintenance Administrative Calibration electricity

Contributors

Num

ber o

f hou

rs

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Cum

ulat

ive

perc

enta

ge

Vital Few

As shown from the analysis the first three contributors shared by 52.6% of the problem (i.e. Vital Few contributors).

The team suggested to concentrate on the first 2 problems – PVC & Compressed Air – that contribute with 36.9% of the problem.

After argument we agreed to take the first two contributors in our consideration.



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The project sponsor suggested the segregation of compressed air problem in a separate improvement subproject since the company will install a new compressor after 2 months.

The team now had reached a common understanding of the process and had known that the major factor that increases the breakdown time is the PVC problems.

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MONTH PVCStoppage hours UTILIZATION

JAN 2 56.90%FEB 4 31.80%

MAR 2.5 50.70%APR 2 43.80%MAY 0.5 87.00%JUN 2 63.60%JUL 5 26.30%

AUG 1.5 70.30%SEP 2.5 54.00%OCT 1 74.00%NOV 3 44.40%DEC 1.5 71.00%



0 1 2 3 4 5 60.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

R² = 0.881735717225589

UTILIZATION

UTILIZATIONLinear (UTILIZATION)



SUMMARY OUTPUT

Regression StatisticsMultiple R 0.939007837

R Square 0.881735717

Adjusted R Square 0.869909289

Standard Error 0.064849747

Observations 12

ANOVA

df SS MS F Significance F

Regression 1 0.313546103 0.313546103 74.55638309 5.99727E-06

Residual 10 0.042054897 0.00420549

Total 11 0.355601

Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0%

Intercept 0.870650544 0.040402482 21.54943194 0.0000000 0.780628204 0.960672884 0.780628204

PVC -0.134902056 0.015623422 -8.634603818 0.0000060 -0.169713208 -0.100090903 -0.169713208


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