CASE STUDY Manufacturing Organization

1.  CASE STUDY Manufacturing Organization Project Name: Wastage Reduction in Manufacturing process of XYZ Ltd Process : Manufacturing Green Belt : Mr ABC

2. DMAIC Steps

3. Define Phase- � Project Charter � Business Case � SIPOC � Voice of Customer (VOC) � Critical To Quality (CTQ)

4. DMAIC Project Charter

5. Define the problem statement-Project charter Background/problem description: Current process wastage is very high as close to 20%hence process becomes sub-optimal and high resource is required to do inspection of final output. Project objective/goal: High wastage leads to pressure on COGS. Hence it is essential to reduce the wastage to less than 10%. Project deliverables: identify the reduce the High wastage leads to pressure on COGS.

6. BUSSINESS CASE AND IMPACT- � XYZ is the first product XYZ Ltd, India is exporting to US market � This product is very critical as it is new product in the Kids range in US � Based on success of this product J&J India can get other new products from US and from other franchises like Neutrogena � The process of pouching soap in to bi-layered tredegar film(aperatured plastic film) is developed by XYZ Ltd India team � Current process wastage is very high as close to 20% hence process becomes sub-optimal and high resource is required to do inspection of final output � Due to limitation in manual checking a rejected soap can go to the market and can lead to serious market complaint � High wastage leads to pressure on COGS � Tredegar film contributes around 18% to total COGS Hence it is essential to reduce the wastage to less than 10% � Business Impact � � USD 10101 or Rs. 505,050 PER ANNUM

7. High Level Improvement Timeline

8.  SIPOC

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11. voice of Customer by Kano Model

12. Analyze Phase- Multi-Vari Analysis � Operator � Shift � Machine Hypothesis testing using ANOVA Cause & Effect diagram � Improper sealing � Uneven cutting

13. Analyze Phase- Multi-vari analysis out put. � Shift is having slight impact on rejection. In the A shift rejection is less which is mainly due to more supervision. � In case of operator unskilled operator showed high amount of wastage � Machine 3 & 4 showed less wastage, so concentrate on machine no. 2

14. Identify the y to be improved- Y= reduce the High wastage leads to pressure on COGS.

15. Fish Bone Diagram/Cause & Effect/Ishikawa Diagram

16. Cause & Effect analysis:-

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18. Fish Bone Diagram/Cause & Effect/Ishikawa Diagram

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20. . � Improper sealing and uneven cutting are two major reasons for generating high amount of wastage. � Out timing was noticed to be main cause of shifting the position of soap in sealing and cutting station � Group discussed to concentrate on reasons for out timing

21. Cause & effect analysis-

22. . Innovative Improvement- � Solution prioritization matrix � FMEA of defects � Cost Benefit Analysis

23. Control Phase- Process capability & sigma � Process yield improves from 61% to 88% � Sigma improves from 1.9 to 2.7 � System modification � Tredegar machine maintenance SOP revised to include schedule for replacing soap feed conveyor links to quarterly basis � Suction system implemented for trim collection � Key Learning's � Use of PE methodology to systematically analyze the process which gives opportunity for process improvements