Bb Wk1 140 Utilizing 6-Sigma to Deliver the Business Plan

8/22/2019 Bb Wk1 140 Utilizing 6-Sigma to Deliver the Business Plan

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Black Belt Training Ford Proprietary

Copyright © 2005-2006, Ford Motor Company – All Rights Reserved

Utilizing 6-Sigma to Deliver

the Business Plan



Utilizing 6-Sigma to Deliver the Business Plan

Black Belt Training Slide: 1

Module Objectives

By the end of this module, the participant will be able to: Communicate the concept and usage of Value Stream Maps

Describe how 6-Sigma is utilized to deliver Ford Motor

Company’s Business Plan (Closing the gap between Current

and Future State) Understand the integration of 6-Sigma into the Global Quality

Operating System





__/wk

Value Stream Mapping Overview





What Is A Value Stream?

A value stream is all of the actions required tochange raw materials into a product delivered to

the customer





What Is Value Stream Mapping?

A visual depiction of the complete value stream,including material, product, and information flow





Value Stream Mapping

_1/wk

Current State

Future State

Becomes Current State

Future State

Becomes Current State

Gap

Gap





Mapping Icons

I200 Pieces

1 Day

Assembly

ManufacturingProcess

ACME

Supply

OutsideSources

CO=35 min

CT=48 sec

3 Shifts

Data Box Inventory

2 / wk

Truck Shipment

PUSHSystem

Finished Goodsto Customer

FIFOFirst In First Out

SequencedFlow

Buffer orSafety Stock

PhysicalPull (or

Withdrawal)

Manual InformationFlow

Electronic InformationFlow

Marketplace(or

Supermarket)

or

2% Scrap





Value Stream Mapping - Current State

20 days

Cut Weld #1 Weld #2 Deflash Paint Assembly

I I I I I

Production

Lead Time

Processing

Time

Supplier

Production

Control

I

Shipping

2x/mo

Customer Orders

Daily Priorities

Orders 60

days out

ShopOrders

I6000 3600 3600 6000 7200 4800

To Weld Area

Supervisor

C/T = 15 sec

C/O= 15-60 min

OEE = 85%

27,000 sec.

avail.

C/T = 45 sec

C/O= 15min

OEE = 65%

27,000 sec.

avail.

C/T = 45 sec

C/O= 15 min

OEE = 65%

27,000 sec.

avail.

C/T = 20 sec

C/O= 0 min

OEE = 80%

27,000 sec.

avail.

C/T = 60 sec

C/O= 60 min

OEE = 70%

27,000 sec.

avail.

C/T = 62 sec

C/O= 0 min

OEE = 85%

27,000 sec.

avail.

5 days 3 days 3 days 5 days 6 days 4 days

15 sec 45 sec 45 sec 20 sec 60 sec 62 sec

46 days

247 sec

Daily Ship

Schedule

20 days

Daily

1200 pcs/day

7.5 hours/shift

2 Shifts/day





Value Stream Mapping - Opportunities

20 days

Cut Weld #1 Weld #2 Deflash Paint Assembly

I I I I I

Production

Lead Time

Processing

Time

Supplier

Production

Control

I

Shipping

2x/mo

Daily

Customer Orders

Daily Priorities

Orders 60

days out

Shop

Orders

I6000 6000 7200 4800

To Weld Area

Supervisor

C/T = 15 sec

C/O= 15-60 min

OEE = 85%

27,600 sec.

avail.

C/T = 45 sec

C/O= 15min

OEE = 65%

27,000 sec.

avail.

C/T = 45 sec

C/O= 15 min

OEE = 65%

27,000 sec.

avail.

C/T = 20 sec

C/O= 0 min

OEE = 80%

27,000 sec.

avail.

C/T = 60 sec

C/O= 60 min

OEE = 70%

27,000 sec.

avail.

C/T = 62 sec

C/O= 0 min

OEE = 85%

27,000 sec.

avail.

5 days 3 days 3 days 5 days 6 days 4 days

15 sec 45 sec 45 sec 20 sec 60 sec 62 sec

46 days

247 sec

Daily Ship

Schedule

20 days

1200 pcs/day

7.5 hours/shift

2 Shifts/day

3600 3600

More frequent

deliveries




Black Belt Training

The Concept and Use of Target Time

Target Time is the time within which you should produce one part or

product, based on customer demand (consumption)

Target Time defines the rate which material and product flow throughthe value stream

To run faster than Target Time anywhere in the value stream isoverproduction, resulting in excess inventory

To run slower than Target Time creates the need for acceleratedproduction, overtime, and expedited shipments

Target

Time Available secs / day

Customer Requirement=

Total Available Production Time

Total Production Requirement Customer

Requirement=





Value Stream Mapping – Future State

Cut Paint Assembly

Production

Lead Time

Processing

Time

Supplier

Production

Control

Shipping

Daily

Customer Daily Order Orders 60

days out

C/T = 15 sec

C/O < 15min

OEE = 85%

EPE = 1 Shift

C/T = 45 sec

C/O= 0 min

OEE = 85%

27,000 sec.

avail.

C/T = 45 sec

C/O<30 min

OEE = 85%

27,000 sec.

avail.

C/T = 45 sec

C/O= 0 min

OEE = 85%

27,000 sec.

avail.10 days

150 sec

Weld + Deflash

2 days 2 days 2 days2 days

15 sec 45 sec 45 sec 45 sec

2 days

Daily Order

OXOX

changeover

changeover changeover

OEE

Daily

1200 pcs/day

2 Shifts/day

7.5 hrs/shift

Target Time = 45 sec

OEE

QPS QPS





Transition Tools/Elements

Tools/Elements

• ISPC

• Visual Factory

• Error Proofing

• Quality

Process

System

• Quick

Changeover

• Six Sigma

• FTPM

• SMF

• IM

• Lean Process

Design

Identify and implement the tools/elements that

will take you from mass to lean

Future StateCurrent State





Describe how 6-Sigma is utilized to deliver

Ford Motor Company’s Business Plan (Closingthe gap between Current and Future State)





6-Sigma Deployment History and Integration Strategy

6-Sigma was introduced in Ford Motor Company in 1999. Originaldeployment was driven with requirements for the number of Black Beltsand generic project savings targets.

The strategy has since evolved to integrating the use of 6-Sigmamethodologies into the means in which business is conducted. This isachieved by:

Reviewing Business Plans within each organization, prioritizing gapsin performance to objectives, and allocating 6-Sigma resources toclose the gaps.

Integration of Failure Mode Prevention (DCOV) and Defect Reduction(DMAIC) methodologies into core business processes (i.e. the Quality

Operating System through the Ford Automotive Procedures). Defining people development (Green Belt, Black Belt, Master Black

Belt, Sensei, Project Champion) required to support the Business Plan





Major Steps for Linking Projects to Business Plans

Review Business Plan Objectives

Obtain Current Performance Results

Conduct Gap Analysis and Y=f(x)project identification

Allocate GB & BB Resources/

Projects to fill gaps

Measure progress with business

plan reviews





6-Sigma Business Plan Integration Process

Renewed Focus on Business Plan

Critical Ys using 6-Sigma Resources

Step 2:

Business Plan

Reviews

Step 1:

Objective

Setting

Step 3:

Tracking and

Reporting





Step 1: Objective Setting

• Y=f(x) helps to align Consumer Business Group (CBG)

goals and necessary process improvement areas for

annual operating business plans





DEVELOP

EXCITING

PRODUCTS

ACHIEVE

COMPETITIVE COST

AND REVENUE

BUILD

RELATIONSHIPS

• TGW

• CUSTOMER

SATISFACTION

• SALES

SATISFACTION

• SERVICE

SATISFACTION

• OTHERS

• TGR

• DELIGHTS/

SURPRISES

• OTHERS

• HARD SAVINGS

• COST AVOIDANCE

• SALES VOLUMES

• HARBOUR HOURS

• LAUNCH METRICS

• OTHERS

• EMPLOYEE

SATISFACTION

SURVEY

• DEALERSHIP

SATISFACTION

• SUPPLIER

SATISFACTION

• OTHERS

DesiredOutcomes

Y=f(x)

CBGMetrics

Metrics are measured against a benchmark, the 2004 goals,

the year-to-date actual performance, and the quarterly trend.

Step 1: Objective Setting, continued

QUALITY





Step 2: Business Plan Reviews

Corporate Balanced Scorecard

Functional Area

Balanced Scorecard

• Current results (G, Y, R)

Expanded Functional

Area Balanced

Scorecard• Ensure linkage

• Conduct gap analysis

• Prioritize opportunities

• Develop project queue

• Confirm project queue

• Align resources

OutcomeBB/GB Project

Core Objectives

U ili i 6 Si D li h B i Pl





Step 2: Business Plan Reviews, continuedStep 2. Business Plan Reviews

MBBs conduct Operational Business Plan Reviews for Critical Ys in order for CBG leaders to agree on how to allocate 6-Sigma projects and

resources in conjunction with the Deployment Directors’ goal to address

key Critical Ys and fill identified gap(s).

Step 2 maps directly to the Corporate, functional area, and expanded

functional area balanced scorecards. Use the process described below to

conduct and complete the business plan review:

Ensure there is direct linkage between highest level

scorecard and the expanded functional scorecard

Determine the status (R, Y, G) of current results

Conduct gap analysis on the previous year results and

following year targets

Prioritize opportunities (Big Ys)Develop potential 6-Sigma project queue

(MBB/Mega/BB/GB projects)

Gain consensus from management on project queue

and resource allocation

Align 6-Sigma resources to specific projects

Utili i 6 Si t D li th B i Pl





Step 3: Tracking and Reporting

• Regularly reassess 6-Sigma project deliverables againstthe status of closing key business plan gaps at the

appropriate operational business plan review meeting,

and Performance Cell reviews

• Ensure CBGs provide necessary resources required toachieve established goals

Utili i 6 Si t D li th B i Pl





Step 3: Objectives Review

The Participant should be able to:

• Communicate the concept and usage of Value Stream

Maps

• Describe how 6-Sigma is utilized to deliver Ford Motor

Company’s Business Plan (Closing the gap betweenCurrent and Future State)

Bb Wk1 140 Utilizing 6-Sigma to Deliver the Business Plan

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