Six Sigma Black Belt Project.

UB TCIE | School of Engineering & Applied Sciences1576 Sweet Home Road, Suite 212, Amherst, NY 14228

www.tcie.buffalo.edu

Reduce the Cycle Time of ECN process by employing Six Sigma methodology.

Candidate Name: Sunil S RoyyuruCompany: Sherex Fastening SolutionsMentor: Tom Pezino Six Sigma Belt Level: Black BeltReport Date: 5/4/2016

Business Case

Sherex Fastening Solutions was founded in 2004 by Mr. Adam Pratt, with a vision ‘To become the global leader in the Design, Manufacture and Installation of innovative engineered fastening solutions.

Ever since inception ,the company has been on a path of growth and the acquisition of

DiscLock LLC being the latest feather in their hat.

Sherex Fastening Solutions LLC has an off shore manufacturing facility at Taiwan and a local manufacturing facility at Akron, OH , which was established in 2014.

Sherex offers its customers a wide range of rivet nuts and also rivet nut installation tools and has its customers in the field of Automotive, Aerospace and Defense, Agriculture and Construction Equipment, General Industrial, and Heavy Truck markets.

The current project aims at reducing the present ECN cycle time from 25.12 days to 3 days.

Successful completion of this project could lead to significant time saving for people involved the process which could be translated in about 30000$ annual financial savings and, increased risk detection and mitigation within the process.

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Define - Project Scope Document

Benefits

• Successful completion of this project could lead to significant time saving for people involved the process which could be translated into 30,000$ of annual financial savings to the company and, increased risk detection and mitigation within the process.

Team

Rich Stauffer Champion

Sunil Royyuru Project Lead

John Knechtges Process Owner

Matt Klotzbach Team Member

Andrew E Conti Team Member

Chris Low Team Member

Kathy Hogan Team Member

Tom Pezino MBB/Coach

Suggested TimelineDefine 10/19/2015

Measure 11/20/2015

Analyze 12/7/2015Improve 2/24/2016Control 4/8/2016

Problem Statement

Due to the high cycle time of the ECN process i.e. 25.12 days, there is a reduction in the process efficiency as a result of which potential cost savings of 30,000$ , lead time improvements and opportunities to reduce the cost of quality are not being tapped into.

Goal Statement

• Improve the Engineering Change Notice (ECN) process cycle time from 25.12 days to 3 days by April 2016.

Scoping

In Scope:• ECN Cycle Time

Out of Scope:• The order to

inquiry process.

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Project Y The ECN process is triggered by a need for an Engineering change in the existing drawings or

when a New Part is developed. It is designed in such a way that ECN passes through 2 levels of inspection (engineering and

quality) ,followed by the necessary changes being updated into a internal resource management software ,Syspro.`

The time it takes from the initiation of ECN to its scanning by the engineer and storing the hard copy is calculated as Cycle Time.

Performance standards The units of this process are the ECN cycle time in days and if all the required fields are filled in

the ECN form. Any ECN which exceeds the cycle time of 3 days or does not have all the required fields filled is

considered as a defect.

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Current Process Map

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Microsoft PowerPoint Presentation

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Current Process Map

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Current Process Map

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Data collection plan

The company has a policy to store the hard copies of all the ECN’s created . This data from the hardcopies was manually entered into the statistical software MINITAB.

Since the data is collected directly from the hard copies of the generated ECN’s it is assumed to be reliable.

To check if there were any errors during the manual transfer of the data , after all the ECN data has been collected,20 ECNs were randomly selected from the storage and the data in the Minitab worksheet is cross checked with that in the ECN.

Although the data regarding the ECNs was collected way back since 2007, it was observed in the preliminary analysis that the variation has been noticed only since middle 2014.Hence, all the data prior to 2014 was screened out.

The data regarding the type of the part the ECN is being done for ,reason for the change , who initiated the ECN, whose signatures are there on the ECN, when each signature has been done was collected from the ECN data sheets.

Furthermore, data regarding the holidays of the company since 2014 has been taken from the company’s internal content management system, SYSPRO, to calculate the cycle time.

Measure

Sample Data

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Pattern of Number of ECN’s created over the years:

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ECNs created based on the type of parts

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Cycle Time based on drawing type. Cycle Time based on type of the ECN.

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Distribution of Mean time taken to complete the purchasing authorization.After August 2014. Before August 2014.

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Analysis of the effect of various process parameters on the Cycle Time:

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Interpretation of Moods Median Test Results• There is statistically significant difference in the

cycle time based on the engineer who initiated the ECN.

• This significance is not considered of practical importance as there were certain anomalies in the process which caused the significance to prop up.

• Statistically there is no difference based on the ‘where the Parts are for’, ‘Drawing Type’ and ‘Purchasing Sign’.

• There is statistical difference in cycle time based on who authorizes under purchasing section.

Analysis of the effect of various process parameters on the Cycle Time:

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Mean Engineering and Quality Time based on the Engineer who initiated it

without the anomalies.Anomalies

Effect of Engineer who initiated on the ECN process.

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ANOVA Results

Analysis of the effect of people on the Process:

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Interpretation of ANOVA Results: Although the p value (<0.05) indicates that the engineer who initiated the ECN has significant

effect on the Engineering Cycle Time but it does not convey practical significance as the R-sq (adj) is very low.

The low R-sq (adj) signifies that the model accounts for only 8.11% of the total actual variation present.

The p value (<0.05) indicates that the Purchasing Representative signing off on the ECN has significant effect on the Purchasing Cycle Time and it conveys practical significance as the R-sq (adj) is high.

The R-sq(adj) signifies that the model accounts for about 57.97% of the total variation present.

However there is a difference in the number of ECNs processed by the each purchasing representative.

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Number of ECN’s authorized by each Purchasing Representative.

Cause and Effect Diagram.

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Misplacing of ECNs

It is just transfer of hard copy of ECN between the signatories as a result of which , sometimes when the person who has to sign is not present in the office or is busy with other work there is a scope for the paper to be lost in other papers

present on the desk or in the transfer between people.

Why are people not available in office?

It is due to travel with regard to work.

Why is there a motion of hard copies of ECN ?

As the process is not automated.

Why is the process not Automated?

Cost related Issues.

Root Cause Analysis using 5 why:

Why are the ECNs misplaced?

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Non Value Adding Steps

Because there is a lot of manual transfer of ECNs between people and also reverse flow in the process.

Because the process is not Automated.

Because, people lack the complete knowledge about the process flow.

Cost issues.

Why are there non value adding steps?

Why is there a manual transfer of ECN’s between people?

Why is the process not automated?

Why is there a reverse flow in the process?

Insufficient training about the process.

Why do people lack knowledge about the process flow?


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The ECN’s waiting at the desks of people.

Because people are not always available at office.

It is because the ECN process is not Automated.

Cost Issue.

Because people wait for information from other

sources.

Sometimes drawings are created before a customer

order is received.

It is done if the customer requests for a drawing to

release an order.

Because currently there is no back up for a person who is not available in the

office.

Why are ECNs waiting at the people’s desk?

Why cant people sign off on the ECN remotely?

Why is the process not Automated?

Why cant a back up person sign off for the person not in office?


Why does people need to wait for information?

Why are drawings created before the customer order is received?

Because people follow batch process

to update the information in the ECN into SYSPRO.

Because people think that to update the ECN information is

not a priority .

Why do people follow batch process?


Because people are not always availablele at their desk.

Why are people not available at their desk?

Insufficient training about the process.

Why do they think so?


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Conclusions based on Root Cause Analysis:

Cause Results of 5 Why AnalysisThe process is not Automated.People involed in the process travelling with regard to work.The process is not Automated.Insuffi cient training about the process.The process is not Automated.No backups are available for a person who is not in the offi ce.Insuffi cient training about the process.

Non Value Adding Steps

ECN's waiting at the desks.

Misplacing of ECNs

Validation of Root Cause Analysis:

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Process Quality Analysis using PFMEA:

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# Process Function/Step Potential Failure Modes Potential Failure Effects (Y's) SEV

Potential Causes of Failure (x's)

OCC

Current Process ControlsDET

RPN

1Information in the ECN being

Updated into SYSPRO.Wrong information updated into Syspro. • Wrong information being shared w ith

distributors and customers.8 Human Error. 5 None 8 320

2 Manual transfer of Hard copies. Loss of ECN's. • Process Delays. 10 • ECN's getting mixed up w ith other paper at the people's desks.

6 • Individualistic Control measures, nothing standard.

5 300

3 Acting on the information in the ECN

Improper communication of the change w ith the w arehouse personnel. .

• Customer receiving w rong parts. 10 Human Error. 3 None 9 270

4Generation of Draw ings for

special parts.Draw ing not according to customer

specif ications.

• Customer dissatisfaction.• Wrong Draw ings being sent to manufacturing.

10 Human Error. 4 Partial Inspection of the process. 4 160

5 Generation of Draw ings Dimensional Errors.• End Customer getting w rong draw ings. • Wrong Draw ings being sent to manufacturing.

10 Human Error. 4 2 Stage inspection process. 1 40

6 Feature Errors.• End Customer getting w rong draw ings. • Wrong Draw ings being sent to manufacturing.


7 Filling out the ECN form.Wrong information being f illed into the

ECN form.

• Wrong information being filled into the database.• Wrong information being shared w ith distributors and customers.


8 Inspection of the ECN .Mistakes not being identif ied at the

inspection.

• End Customer getting w rong draw ings. • Wrong Draw ings being sent to manufacturing.


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Improve -New Process Maps:

New Process Maps:

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New Process Maps:

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Engineering Change Notice(ECN) process automation.

The ‘Send for Signature’ tool in the Adobe Pro DC is used to communicate the change electronically ,with all the stakeholders in the process.

Using this tool the initiator can setup the path the ECN document follows for the signature and can track the document real time.

The initiator can also send reminder to any of the stakeholders to authorize the change or can set default reminder at pre designated time at the beginning of the process.

The stakeholders can authorize the change or can decline the change and there by ECN is automatically kicked back to the initiator and if the change is authorized the ECN gets forwarded to the next signee in the pre-defined path.

There is also an option for the stake holder to delegate the work to any other person ,if for any reason he/she cannot work on the ECN at that moment of time.

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Akron Manufacturing Akron Sale

New ECN Forms:

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Taiwan Sales:

New ECN Forms:

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Measures taken to reduce the high Severity rating of Detection.

The information that is updated into Syspro is verified by the engineer at the end of the process ,when he gets back the ECN after all the authorizations have been completed.

Transfer of hard copies of ECNs has been eliminated so that instead of having individualistic control measures against the loss of ECNs ,there is now a standard control procedure against the loss of ECN documents.

A proper channel of communication has been set up to inform the change to warehouse in charge ,who is responsible for executing the change mentioned, to the parts in the inventory.

# Process Function/Step Potential Failure Modes Potential Failure Effects (Y's) SEV


OCC

Current Process ControlsDET

RPN

1Information in the ECN being

Updated into SYSPRO. Wrong information updated into Syspro. • Wrong information being shared w ith distributors and customers.

8 Human Error. 5 None 8 320

2 Manual transfer of Hard copies. Loss of ECN's. • Process Delays. 10 • ECN's getting mixed up w ith other paper at the people's desks.

6 • Individualistic Control measures, nothing standard.

5 300

3 Acting on the information in the ECN

Improper communication of the change w ith the w arehouse personnel. .

• Customer receiving w rong parts. 10 Human Error. 3 None 9 270

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Potential Failure Modes

Potential Failure Effects (Y's)

SEV


OCC

Current Process Controls

DET

RPN

Recommend

Actions

Responsible

Person & Target Date

Taken Actions

SEV

OCC

DET

RPN

Wrong information updated into

Syspro.

• Wrong information being shared w ith distributors and customers.

8 Human Error.

5 None 8 320

Take measures to reduce the risk rating of

detection.

Sunil & 5/2/16

Set up a process control

measure to verify if the information is correctly updated.

8 5 1 40

Loss of ECN's.

• Process Delays. 10

• ECN's getting mixed up w ith other paper at the people's desks.

6

• Individualistic Control measures, nothing standard.

5 300

Take measures to reduce the risk rating of detection

and occurance.

Sunil & 5/2/16

Transformed the

process to be

paperless and there

by eliminating scope for the loss of

ECNs.

10 1 1 10

Improper communicati

on of the change w ith the

w arehouse personnel. .

• Customer receiving w rong parts.

10Human Error. 3 None 9 270


detection.

Sunil & 5/2/16

Designated a person

responsible for

executing the change.

10 3 3 90

Draw ing not according

to customer specif icatio

ns.

• Customer dissatisfaction.• Wrong Draw ings being sent to manufacturing.

10Human Error. 4

Partial Inspection

of the process.

4 160


detection.

Sunil & 5/2/16

Set up a multi level inspection system.

10 4 1 40

New Process Quality Analysis using PFMEA:

Control

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Control Plan:

The investment that is necessary to implement the process improvements is 500$/annually ,i.e to buy the 4 additional adobe licenses.

Cost Analysis:

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Tool to Monitor the Process:

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Standard Operating Procedures:

Standard Operating Procedures ECN process

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Statistical comparison of the performance of Old and New ECN Processes:

2 Sample ‘t’ Test:

Performance Metric: Process Cycle Time

Interpretation of the results: The P value (<0.05) shows that there is statistically significant difference in the cycle times of

the Old and New process. There is also very significant difference in the cycle time Means of the Old and New ECN

processes.

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Train the people with regard to the new process and SOPs created. Explore the capabilities of the Engineering Change Control (ECC) module in Syspro to further

automate the ECN process.Advantages of using the Engineering Change Control Module in SYSPRO: Document can be signed electronically and we can create a route , that the document

follows for authorizations before returning back to the originator. Will have a record of all the previous versions readily available. The change is communicated to ware-house automatically and that doesn’t allow shipment

of parts on which engineering change is being done, until it is completed.Disadvantages of using the Engineering Change Control Module in SYSPRO: The Set up process could be a bit complicated. The alternate routing is not simple. Multiple Parts cannot be grouped under one ECN.

Use the bar code scanning system before shipping in warehouse.Effectiveness of the Bar Code scanning system: If the barcode scanning system is integrated with the Syspro and if an old revision part is

being sent it triggers a warning saying old revision is being sent.

Scope for Future Work:

Six Sigma Black Belt Project.

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