Maximizing Resources: Applying Lean Six Sigma Principles to Your Print Operation

1. L Maximizing Resources: Applying Lean Six Sigma Principles to Your Print Operation Monday March 18, 2019 10 AM – 12 PM

2. L Cycle Time Must Be Less Than Lead Time

3. Cycle Time (CT) is the Time Required to Execute Activities in a Process L This could be • A single step or operation • A group of operations • Customer order to customer delivery Any in-plant process can be measured • estimates • print production • mailing Cycle time includes actual processing time, movement time, and waiting time

4. What Makes Cycle Time High? How Do You Become Faster? L • Product flow variability • Reduce Variability • Inventory or work in process (WIP) • Reduce & Manage the WIP • Complexity of processes • Simplify the Process

5. WIP Throughput Cycle Time = How Do We Measure Cycle Time? L • Theoretical Time • One product through from start to finish with no WIP • Dynamic Cycle Time(Little’s law):

6. L L6∂ Seven NVAs – The Evil of WIP

7. Little's Law Lead Time = WIP / Average Completion Rate 150 books in progress / 75 books produced in one shift = 2 Days Lead Time T As throughput increases, the other two decrease, as bottlenecks are removed, throughput increases Throughput Inventory Operating Expense $ tied up $ going out $ coming in I OE

8. Why is Cycle Time Important? L • To be COMPETITIVE: • Cycle Time < Lead Time (Customer Requirement) • Must be able to meet the customers requirement – lead time • Shorter Cycle Times provide • Huge competitive advantage • Greater throughput- can do more with existing resources and time • Provides fast lead times for customers • Reduced manufacturing costs • Can be a in-plant saver

9. Exercise L • Examine how your process “responds” to the voice of the customer • Understanding cycle time and how we measure it • Understanding the importance of reducing cycle time • Learning various techniques (tools) to identify and reduce “waste” • Use an example to analyze and study L concepts

10. Cell 1 Clip • Put white sheet on top of cover • Center white sheet to top and bottom of cover sheet • Pass to next station

11. Cell 2 Highlight • Highlight black dotted line • Make sure highlight encompasses all of black dotted line • Pass to next station

12. Cell 3 X and O • In pen, draw a circle within the dotted lines, making sure your pen does not touch or pass dotted line, and that the circle completes itself • With a ruler connect the dots in an X, make sure your lines do not pass or come short of the dots • Pass to next station

13. Cell 4 Labeling • Over dotted line, write this exactly • PsP 2019 • Pass to next station

14. Cell 5 Testing • Detach paper clip • Take white sheet off of cover • QC for Conformance: • Highlight over line • Circles within dotted lines • Circle closes itself • Dots are connected with clean straight lines • Lines do not go past or come short of the dots • Make two piles – one for good the other for bad

15. Cell 5 Testing L6σ Vernacular • Good is called Conformance • Bad is called Non-Conformance • Conformance means that you are conforming to the requirements of the voice of the customer - VOC • First and foremost our processes must be in conformance to the VOC. • Testing cell make sure you report back to your group and leader non conformance issues so they can be remedied

16. Cell 6 Testing • For testing cell only • When you get the salmon sheet you tell the timekeeper stop and your team stops • For the rest of the cells, when you see the salmon sheet you must keep producing, only stop when testing cell says stop

17. Table Layout- 10 people per table #1 #3 #7 #9 #5 Employee Labeling Testing Clip Highlight X and O #10 #4 #6 #8 #2 Employee

18. EDU Staff One EDU staff member per table. They keep time and after one minute insert salmon sheet on top of clip cells white sheets. When production stops, they gather WIP for each cell, and the number of good and bad products- report data to Gordon. Labeling Testing Clip Highlight X and O

19. FIFO- First In First Out CLIP HIGHLIGHT HIGHLIGHT X AND O Downstream cells always start by taking from the top of the pile. If there are multiple piles, keep the first pile towards you

20. Record Keeping

21. X/O Exercise L Round 1 Push System

22. Discussion : Round 1 Push System L LOT 9 LOT 3 LOT 7 LOT 4 LOT 6 LOT 2 LOT 10 LOT 11 LOT 8 LOT 5 LOT 1 OPER A OPER B OPER C OPER D A system where work is performed to a schedule or plan and sent to the next process without regard to demand from that process

23. Discussion : Round 1 L • How Does WIP affect Cycle Time?

24. X/O Exercise L Round 2 Pull System

25. Push vs. Pull Systems L PUSH SYSTEM A system where work is performed to a schedule or plan and sent to the next process without regard to demand from that process LOT 9 LOT 3 LOT 7 LOT 4 LOT 2 LOT 6 LOT 10 LOT 11 LOT 8 LOT 5 LOT 1 OPN A OPN B OPN C OPN D etc.. LOT 4 LOT 3 LOT 2 LOT 1 PULL SYSTEM system where work is performed only when the next process has capacity to consume it OPN A OPN B OPN C OPN D

26. Discussion : Round 2 L • Identification of the bottlenecks

27. Round 2 Rules L • Each cell makes a product in batches • Once your identified cell batch is made you stop until the next cell takes your batch then you can make another batch- the downstream process determines rate of throughput • Batches for each cell (assuming 2 employees per cell): • Clip – in batches of 2 (1 per employee) • Hilight – in batches of 2 (1 per employee) • X and O – in batches of 4 (2 per employee) • Labeling – in batches of 4 (2 per employee) • Testing – in batches of 2 (2 per employee)

28. X/O Exercise L Round 3 Custom

29. Round 3 Rules L • Your leader leads your group in developing a new improved process • No rules, just make the product in conformance • Improvement means: • Simplify the process • Correct problems with: • WIP • Waiting • Transportation • Non-conformance

30. Discussion : Round 3 L • Are there still bottlenecks? • How was your WIP? • Did your group improve from Round 2? • What would your improvement plan be if we did another round?

31. Determining Cycle Time in PSP

32. Maximizing Resources: Applying Lean Six Sigma Principles to Your Print Operation QUESTIONS L