termvi sixsigma ford

7/29/2019 TERMVI SixSigma Ford

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Introduction Ford and

Six Sigma

Consume DrivenSix Sigma

What it

means atFord

Communicationand Training

People andhow theymatter

Design for SixSigma @ Ford

What itmeans

Tools andTraining

Case Applicationat Ford Otosan

How theyachievedreduction

in stocks

Obstacles

Problemsthey faced

How theywentaround

Agenda


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1898- Startedas Detroit

AutomobileCompany

1905 Reached18000 cars in

an year

1911 FordMotor

Company wentoverseas

1920 millionvehicles an year

1925Factories in

many countries

2008- 5.532million vehicles

Introduction

I am willing to offer any color (for my car) as long as it is black

Fact Sheet

Introduced the world to assembly lines and mass production

Elaborate management of industrial workforce

Grew serious about customer centric six sigma after customer satisfaction

began to fade in 2000s

Changed vision of the company to incorporate the Consumer DrivenApproach

Adopted six sigma across departments in 2000

Savings of $ 2.19 billion globally

Ford India alone has saved $1.5 million in four years


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Consumer Driven Six Sigma

Must relate to customer satisfaction

Results must reduce defects by 70%

Each project should achieve average cost savings of $250,000

Six sigma is not a stand alone initiative but a part of a 3 part quality management

Projects on which Six Sigma will be applied are chosen based on three criteria


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Communication Plan

Three staged communication plan was developed

Stage 1: 350 people were trained in groups ofTop management

Officers

Leadership

The three groups were given extensive training on the application and how it can save capital

Stage 2: Identified people within the organization that will serve as the "backbone of the six sigma process

Stage 3: The employees were split into four categories

Project Champion- A member of upper management who supports the project and removes any roadblocks forthe Black Belt

Master Black Belts- Train Black Belts and mentor them in their projects. They also show progress and successesto upper management.

Black Belts- Implement Six Sigma projects and lead individuals on the improvement team in the right direction

Green Belts- Learn some of the tools, help Black Belts with projects and do small projects of their own. GreenBelts with expertise in different areas often participate on the same team.

CEO also communicated the need for Six Sigma frequently

highlighting its importance for Ford

led to better commitment from top management


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Mega Project: Ford Focus body side

moldings were lifting at the edges

Case Application

Define Tape wasnt in contact with car body

Holes were located too high

Pressure being applied to the molding was low

Body wasnt clean, so tape couldnt stick

Measure How flat was the surface

Measure the pressure

Measure size of the holes, pitch of holes

Percentage of area being cleaned

Analyze Analysis with senior personnel and maintenance

Improve Moved the holes down by 2mm

Changed the molds to make the surface more flat to get tape contact

Using DoE, optimum pressure was found out

Cleaning head was replaced to have better cleaning of surface

Control Hole is being continuously monitored

Molding being flat is a QC for the supplier now

QC for the pressure

QC for surface cleanliness


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Some of the major problems identified during Design phase were:

1. The tape on the molding wasn't contacting the car body enough

2. Holes located on the body used to line up the molding were too high and were hitting an indent on the body side

3. It turned out the pressure we were using to apply the molding was too low

4. The body side was not sufficiently clean, so the tape wasn't sticking as well as it could

Once the problems were identified, MAIC was applied !!!

Measure : The team measured where the holes on the body side were located, how flat the part was and how we could fix the

moulding to make it flat, further the pressure being used was also measured

Analyze : Once all the data had been gathered, the team analysed results and found the appropriate solution

Improve:

The solution included moving the holes on the body side down about 2 millimetres On the body-side moulding, moulds were changed to make sure that it was very flat on the back side

Next they figured out optimum application pressure, then they replaced the head on the cleaning fixtures to clean the

body side more effectively

Control: Changing the hole location on the body side was a permanent fix, regular quality checks to make sure moulds were

flat, ensuring that optimum pressure was used to apply moulding

Overcoming scepticism: Another major chief roadblock to implementing 6 was employee scepticism.

Team felt that the only way to overcome this challenge was to demonstrate successes over time. 2 years later, it was found that more and more Ford employees are jumping on the 6 bandwagon as they realize results

experienced by other departments

Success Story: Since the team's improvements have been implemented, the project has yielded $100,000 in waste elimination

savings per year !!!

Challenges faced by Ford


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Identifyingcustomer desires

Developingvalidated transfer

functions(mathematical

models).

Correlating theseobjective

measures tocustomer desires

Effectivelyassessing the

capability to meetthose desires

Applying transferfunction

knowledge tooptimize designs

Satisfy customerdesires and avoid

failure modes.

DFSS at Ford has emerged as a scientific approach to PD that

leverages Six Sigma culture.

The implementation strategyassumed people would buy intoSix Sigma if results were quickly

realized from the companysshort-term DMAIC projects.

There the importance ofdeveloping DFSS for the longterm was also recognized.

The team held benchmarkingdiscussions with DFSS adoptingcompanies and listened to

consultants familiar with thoseefforts.

The team settled on a four-phase process: define,characterize, optimize andverify (DCOV).

The framework aligned withFords existing product

development system & built onthe disciplines of systems,robust & simultaneous

engineering

Introductory training wasavailable through the Fordtechnical education program(FTEP)

Work was divided intosubprojects with a BB assignedto each. Growth in the numberof projects was driven by asenior vice president

DFSS Master Black Belt wasplaced as manager of thedepartment responsible for thecomputer modeling of newengine designs.

This manager teamed up withan engine program manager toact as working level championsfor DFSS

DFSS @ FORD MOTORS


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Senior management made it clear DFSS would not replace, but would augment, the existing PD process in specifically designated areas

PD entails at least three different categories of scope, The rhythm & timing of DFSS projects associated with these efforts vary depending on the

category

In a division whose senior leader

actively drove DFSS from the start,

project numbers grew exponentially

over the first three years of

implementation. In a similar sized

division, in which DFSS deployment

leaders solicited projects from mid-

level management, project numbers

remained in the low teens for the

same time period.

In DMAIC, BBs identifyand reduce the

frequency of defects

generated. In DFSS,teams must not onlyanticipate & preventdefects, they must

anticipate and meetlatent customer needs.

DFSS requires a balanceof analysis and

synthesisthe synthesisof new designs and

design standards from acombination of reasoning

based on experience,observation and theory

Compounding thechallenge of DFSS is the

added uncertainty about

future customer desiresand future sources andlevels of production andusage variability that will

affect productperformance

DFSS teams must alsohave knowledge aboutnon-statistical methodsfor obtaining consumer

insight, cascadingcustomer desires down

to componentspecifications and

verifying designs withsmall sample sizes for

testing etc.

Project Integration Within Existing Processes

PROCESS FLEXIBILITY


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The Ford team initially devoted time to devising a single DFSS flowchart but was abandoned. The team, therefore, decided to produce two

documents:

1. A tool matrix to outline which tools might be applied at each project phase

2. 2. A project checklist to delineate intended outcomes at each phase. It is used with the understanding some items may not apply to a

particular project as determined by the MBB and executive Champion.

Trainingto

supportDFSS


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Objective: Reduce finished vehicle stock levels of export vehicles,

while ensuring on-time shipping of orders

Six Sigma Project

initiated!

Step 1: Identified CTQs

Stocks of export vehicles cannot exceed 2.5 days of production, about 888 vehicles The time between a vehicles production & its shipment cannot exceed 8 days

All shipments must be made as planned

Step 2: Identified Sub-processes that might affect stock levels: Order receiving,

production, supply, scheduling, shipment

Step 3: Data Analysis

Two types of finished-vehicle stocks: before-gate-release stocks & compound

stocks

Found that average daily stock level(1100 vehicles) far exceeds USL of 888

FORD-OTOSANS OPTIMIZATION OF STOCKSAutomotive company Facilities for production, service & spare-parts distribution

Trying to increase production volume (for domestic market & export)due to increased demand and increase variety

Finished vehicle stocks increased, especially for export vehicles


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Step 5: Identified constraints in developing schedules

Market-priority constraints

Shipment constraints

Supplier constraints

Production constraints

Step 6: Integer Programming Model

To generate daily production schedule, taking into account the fixed shipment days and the Operating Plans

(developed using demand, production capacity & constraints) developed by Ford Europe

Identified 2 more constraints:

Part constraintparts with lowest availability in terms of suppliers daily production capacity

Color Constraint to reduce changeover times between colors

Step 7: Daily schedule obtained for one week using Microsoft Excels Solver

Modifying current process to accommodate fixed shipment days was too costly

The new schedule decreased compound stocks considerably, but not before-gate-release stocks

Step 4: Process Improvement

At Ford-Otosan, order-to-delivery times are not determined solely by production lead times

By scheduling shipment of vehicles on only certain days of the week, the firm restricts the

distribution activities

Also, atleast one extra day is needed by staff members to create customs documents & bills


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Step 8: A new Shop Floor Control System

Earlier, in order to fill the line, the team would start production of some other order without considering

shipment days & routes, which led to inefficient use of vehicles

The new system showed the no. of vehicles that would become available by the shipment day so that it could

be matched with the planned shipment amount

In placing extra orders to fill the line, priority was given to orders that would be ready to ship on the nextspecified shipment date

This control was done every day or even twice a day

Step 9: Analysis of Improvements

Levels of export vehicle stocks reduced significantly

Reduction in order-to-delivery times, resulting in increased

customer satisfaction

Improved process mean is almost half of

that of the previous process, variance isalso smaller

Savings of about $1.2 million in 2003 and $2.6

million in 2004!!


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Thank You


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http://voices.yahoo.com/ford-motor-company-six-sigma-initiative-4844798.html?cat=27 http://www.qualitydigest.com/june03/articles/02_article.shtml

http://www.minitab.com/uploadedFiles/Company/News/Case_Studies/Ford-DOE-EN.pdf

http://www.qualitydigest.com/june03/articles/02_article.shtml

Meltem Denizel et al. Ford Otosan optimizes its stock using Six Sigma. Interfaces. March

April 2007. pg 97-107

Design For Six Sigma at Ford Nathan R. Soderborg, Ford Motor Co

References
http://voices.yahoo.com/ford-motor-company-six-sigma-initiative-4844798.html?cat=27http://www.qualitydigest.com/june03/articles/02_article.shtmlhttp://www.minitab.com/uploadedFiles/Company/News/Case_Studies/Ford-DOE-EN.pdfhttp://www.qualitydigest.com/june03/articles/02_article.shtmlhttp://www.qualitydigest.com/june03/articles/02_article.shtmlhttp://www.minitab.com/uploadedFiles/Company/News/Case_Studies/Ford-DOE-EN.pdfhttp://www.minitab.com/uploadedFiles/Company/News/Case_Studies/Ford-DOE-EN.pdfhttp://www.minitab.com/uploadedFiles/Company/News/Case_Studies/Ford-DOE-EN.pdfhttp://www.minitab.com/uploadedFiles/Company/News/Case_Studies/Ford-DOE-EN.pdfhttp://www.minitab.com/uploadedFiles/Company/News/Case_Studies/Ford-DOE-EN.pdfhttp://www.qualitydigest.com/june03/articles/02_article.shtmlhttp://voices.yahoo.com/ford-motor-company-six-sigma-initiative-4844798.html?cat=27http://voices.yahoo.com/ford-motor-company-six-sigma-initiative-4844798.html?cat=27http://voices.yahoo.com/ford-motor-company-six-sigma-initiative-4844798.html?cat=27http://voices.yahoo.com/ford-motor-company-six-sigma-initiative-4844798.html?cat=27http://voices.yahoo.com/ford-motor-company-six-sigma-initiative-4844798.html?cat=27http://voices.yahoo.com/ford-motor-company-six-sigma-initiative-4844798.html?cat=27http://voices.yahoo.com/ford-motor-company-six-sigma-initiative-4844798.html?cat=27http://voices.yahoo.com/ford-motor-company-six-sigma-initiative-4844798.html?cat=27http://voices.yahoo.com/ford-motor-company-six-sigma-initiative-4844798.html?cat=27http://voices.yahoo.com/ford-motor-company-six-sigma-initiative-4844798.html?cat=27http://voices.yahoo.com/ford-motor-company-six-sigma-initiative-4844798.html?cat=27http://voices.yahoo.com/ford-motor-company-six-sigma-initiative-4844798.html?cat=27http://voices.yahoo.com/ford-motor-company-six-sigma-initiative-4844798.html?cat=27

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