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Six sigma project

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Hossam Hassan
Hossam Hassan

- The document discusses a Lean Six Sigma project to improve the utilization percentage of a packaging line (Line II) at a pharmaceutical company. - A Pareto analysis identified PVC issues as the top contributor to breakdown hours, accounting for over 20% of downtime. - Regression analysis showed a strong correlation (R2 = 0.88) between monthly PVC stoppage hours and utilization percentage, indicating addressing PVC issues could significantly improve line utilization.

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1 LEAN SIX SIGMA PROJECT By: Hossam Mostafa
LEAN SIX SIGMA PROJECT 2
LEAN SIX SIGMA PROJECT 3 Hikma Pharma is a pharmaceutical company. Its plant is located in 6th of October city. It produces and markets a wide range of innovative products covering the main therapeutic areas. The products are classified as shown in the pie chart below: Analgesic Antibiotics Antifungals GIT Prep. Paediatric Prep. Vitamins Miscellaneous Heart Prep. Topical Prep.
LEAN SIX SIGMA PROJECT 4 There are two main blistering and packing lines in the packaging area in Hikma plant, these lines are named Line I and Line II. Line II available working hours per month are 180 hours. These hours are divided between setup, run, clean, change over, breakdown and no schedule. Every month the utilization of line one is calculated by using the following formula: (total setup + total run + total clean + total change over) *(100/180)
Evaluation of projects for selection: Strategic impact Financial revenue Expenses Potential Resistance Duration Sum Weight Strategic impact 1 0.5 0.25 3 0.33 5.08 0.12 Financial revenue 1 1 0.25 3 0.25 5.5 0.13 Expenses 4 4 1 4 4 17 0.40 Potential Resistance 0.33 0.33 0.25 1 0.25 2.16 0.05 Duration 3 4 0.25 4 1 12.25 0.29 41.99 1.00 5 LEAN SIX SIGMA PROJECT
LEAN SIX SIGMA PROJECT 6 Criteria Weight ↑ Utilization % ↑ Productivity % ↓ Rework 1 Strategic impact 0.12 4 4 3 2 Financial revenue 0.13 4 4 2 3 Expenses 0.40 4 2 2 4 Potential Resistance 0.05 4 4 2 5 Duration 0.29 2 2 2 Total project score (Without weight) 18 16 11 Total project score (With weight) 3.42 2.61 2.12
Mission Statement: Our company's major packaging line (CAM II) is utilized by 56.2% in the year 2013. Increase utilization percentage in the year 2014. Six Sigma Improvement Project Charter Project name Improve machine utilization Mission Statement Our company's major packaging line (CAM II) is utilized by 56.2% in the year 2013. Increase utilization percentage in the year 2014. Team Members 1. QA Supervisor 2. Production Supervisor 3. Production technician 4. Maintenance technician 5. QC analyst 6. Purchasing specialist Resources •The team is authorized to collect relevant data, discuss the problem with those involved with it. •Team members should have 4 hours per week available for the project. •The team has access to the resources it needs to carry out the mission. •Arrangements are spelled out for obtaining additional resources and policy support if the project proves to be beyond the resources already at the team disposal. 7 LEAN SIX SIGMA PROJECT
LEAN SIX SIGMA PROJECT 8
LEAN SIX SIGMA PROJECT 9 Utilization percentage of blistering line II in the year 2013: 1- Operational definitions: •"Utilization percent": after discussion team members agreed that utilization percent means number of hours of run, clean, change over and setup hours divided by theoretical hours that the machine supposed to work in case of no defect status (180 hours). •"Labor overtime hours": these are working hours that are performed at non official time, e.g. in vacancies or after official leave hours. •"Day hours": these are the actual working hours during day time (i.e. 8:00 – 12:00 & 12:30 - 16:30).
LEAN SIX SIGMA PROJECT 10 Month Utilization percent January 56.9% February 31.8% March 50.7% April 43.8% May 87.0% June 63.6% July 26.3% August 70.3% September 54.0% October 74.0% November 44.4% December 71.0% 2- Symptoms identification & measure: •The team decided to use production monthly output report and data posted on SAP in order to measure utilization percent per month. •Collective data of utilization percent for each month during year 2013 was viewed, the following trend shows the results obtained.
LEAN SIX SIGMA PROJECT 11 Utilization percent year 2003 56.9% 31.8% 50.7% 43.8% 87.0% 63.6% 26.3% 70.3% 54.0% 74.0% 44.4% 71.0% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Month Utilizationpercent Utilization percent 2013
LEAN SIX SIGMA PROJECT 12 PLANNING MATERIALS AND RESOURCES ORDER ISSUEING PROCESS ORDER PRODUCTION PRODUCTION PROCESS ORDER MATERIALS PREPARATION PACKAGING COMPONENTS W.H
LEAN SIX SIGMA PROJECT 13 Issue work order Planning Revise work order, check validity Receive work order Prepare needed materials Receive & revise lot no. & qty. Machine run and setup FN Product QAProductionWHProduction Production Process map
LEAN SIX SIGMA PROJECT 14 Month Utilization percent January 0.6 February 0.3 March 0.5 April 0.4 May 0.9 June 0.6 July 0.3 August 0.7 September 0.5 October 0.7 November 0.4 December 0.7 MIN 0.3 MAX 0.9 AVERAGE 0.6 σ 0.2 AV-3σ 0.0 AV+3σ 1.2
LEAN SIX SIGMA PROJECT 15 Serial Contributors Number of breakdown hours Percentage Cumulative percentage 1 PVC 27.4375 20.591% 20.591% 2 Air 21.75 16.323% 36.914% 3 Carton m/c 20.9375 15.713% 52.627% 4 Sorting 16 12.008% 64.634% 5 m/c setting 13.4375 10.084% 74.719% 6 Waiting material 6.75 5.066% 79.784% 7 Aluminum 6.25 4.690% 84.475% 8 Sealing 4.1875 3.143% 87.617% 9 Blister m/c 4 3.002% 90.619% 10 Others 3.75 2.814% 93.433% 11 Maintenance 2.5 1.876% 95.310% 12 Administrative 2.5 1.876% 97.186% 13 Calibration 2.25 1.689% 98.874% 14 electricity 1.5 1.126% 100.000% Pareto analysis was constructed to show the contributors of Break down hours of Line II and the vital few contributors that affect Line II breakdown
LEAN SIX SIGMA PROJECT 16 PVC Air Carton m/c Sorting m/c setting Waiting material Aluminum Sealing Blister m/c Others Maintenance Administrative Calibration electricity
LEAN SIX SIGMA PROJECT 17 Pareto Analysis 0 20 40 60 80 100 120 PVC Air Carton m/c Sorting meshwar Waiting material Aluminum Sealing Blister m/c Others Maintenance Administrative Calibration electricity Contributors Numberofhours 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Cumulativepercentage Vital Few  As shown from the analysis the first three contributors shared by 52.6% of the problem (i.e. Vital Few contributors).  The team suggested to concentrate on the first 2 problems – PVC & Compressed Air – that contribute with 36.9% of the problem.  After argument we agreed to take the first two contributors in our consideration.
LEAN SIX SIGMA PROJECT 18
LEAN SIX SIGMA PROJECT 19 The project sponsor suggested the segregation of compressed air problem in a separate improvement subproject since the company will install a new compressor after 2 months. The team now had reached a common understanding of the process and had known that the major factor that increases the breakdown time is the PVC problems.
LEAN SIX SIGMA PROJECT 20 MONTH PVC Stoppage hours UTILIZATION JAN 2 56.90% FEB 4 31.80% MAR 2.5 50.70% APR 2 43.80% MAY 0.5 87.00% JUN 2 63.60% JUL 5 26.30% AUG 1.5 70.30% SEP 2.5 54.00% OCT 1 74.00% NOV 3 44.40% DEC 1.5 71.00%
LEAN SIX SIGMA PROJECT 21 R² = 0.8817 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% 100.00% 0 1 2 3 4 5 6 UTILIZATION UTILIZATION Linear (UTILIZATION)
LEAN SIX SIGMA PROJECT 22 SUMMARY OUTPUT Regression Statistics Multiple R 0.939007837 R Square 0.881735717 Adjusted R Square 0.869909289 Standard Error 0.064849747 Observations 12 ANOVA df SS MS F Significance F Regression 1 0.313546103 0.313546103 74.55638309 5.99727E-06 Residual 10 0.042054897 0.00420549 Total 11 0.355601 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Intercept 0.870650544 0.040402482 21.54943194 0.0000000 0.780628204 0.960672884 0.780628204 PVC -0.134902056 0.015623422 -8.634603818 0.0000060 -0.169713208 -0.100090903 -0.169713208

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Six sigma project

  • 1. 1 LEAN SIX SIGMA PROJECT By: Hossam Mostafa
  • 2. LEAN SIX SIGMA PROJECT 2
  • 3. LEAN SIX SIGMA PROJECT 3 Hikma Pharma is a pharmaceutical company. Its plant is located in 6th of October city. It produces and markets a wide range of innovative products covering the main therapeutic areas. The products are classified as shown in the pie chart below: Analgesic Antibiotics Antifungals GIT Prep. Paediatric Prep. Vitamins Miscellaneous Heart Prep. Topical Prep.
  • 4. LEAN SIX SIGMA PROJECT 4 There are two main blistering and packing lines in the packaging area in Hikma plant, these lines are named Line I and Line II. Line II available working hours per month are 180 hours. These hours are divided between setup, run, clean, change over, breakdown and no schedule. Every month the utilization of line one is calculated by using the following formula: (total setup + total run + total clean + total change over) *(100/180)
  • 5. Evaluation of projects for selection: Strategic impact Financial revenue Expenses Potential Resistance Duration Sum Weight Strategic impact 1 0.5 0.25 3 0.33 5.08 0.12 Financial revenue 1 1 0.25 3 0.25 5.5 0.13 Expenses 4 4 1 4 4 17 0.40 Potential Resistance 0.33 0.33 0.25 1 0.25 2.16 0.05 Duration 3 4 0.25 4 1 12.25 0.29 41.99 1.00 5 LEAN SIX SIGMA PROJECT
  • 6. LEAN SIX SIGMA PROJECT 6 Criteria Weight ↑ Utilization % ↑ Productivity % ↓ Rework 1 Strategic impact 0.12 4 4 3 2 Financial revenue 0.13 4 4 2 3 Expenses 0.40 4 2 2 4 Potential Resistance 0.05 4 4 2 5 Duration 0.29 2 2 2 Total project score (Without weight) 18 16 11 Total project score (With weight) 3.42 2.61 2.12
  • 7. Mission Statement: Our company's major packaging line (CAM II) is utilized by 56.2% in the year 2013. Increase utilization percentage in the year 2014. Six Sigma Improvement Project Charter Project name Improve machine utilization Mission Statement Our company's major packaging line (CAM II) is utilized by 56.2% in the year 2013. Increase utilization percentage in the year 2014. Team Members 1. QA Supervisor 2. Production Supervisor 3. Production technician 4. Maintenance technician 5. QC analyst 6. Purchasing specialist Resources •The team is authorized to collect relevant data, discuss the problem with those involved with it. •Team members should have 4 hours per week available for the project. •The team has access to the resources it needs to carry out the mission. •Arrangements are spelled out for obtaining additional resources and policy support if the project proves to be beyond the resources already at the team disposal. 7 LEAN SIX SIGMA PROJECT
  • 8. LEAN SIX SIGMA PROJECT 8
  • 9. LEAN SIX SIGMA PROJECT 9 Utilization percentage of blistering line II in the year 2013: 1- Operational definitions: •"Utilization percent": after discussion team members agreed that utilization percent means number of hours of run, clean, change over and setup hours divided by theoretical hours that the machine supposed to work in case of no defect status (180 hours). •"Labor overtime hours": these are working hours that are performed at non official time, e.g. in vacancies or after official leave hours. •"Day hours": these are the actual working hours during day time (i.e. 8:00 – 12:00 & 12:30 - 16:30).
  • 10. LEAN SIX SIGMA PROJECT 10 Month Utilization percent January 56.9% February 31.8% March 50.7% April 43.8% May 87.0% June 63.6% July 26.3% August 70.3% September 54.0% October 74.0% November 44.4% December 71.0% 2- Symptoms identification & measure: •The team decided to use production monthly output report and data posted on SAP in order to measure utilization percent per month. •Collective data of utilization percent for each month during year 2013 was viewed, the following trend shows the results obtained.
  • 11. LEAN SIX SIGMA PROJECT 11 Utilization percent year 2003 56.9% 31.8% 50.7% 43.8% 87.0% 63.6% 26.3% 70.3% 54.0% 74.0% 44.4% 71.0% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Month Utilizationpercent Utilization percent 2013
  • 12. LEAN SIX SIGMA PROJECT 12 PLANNING MATERIALS AND RESOURCES ORDER ISSUEING PROCESS ORDER PRODUCTION PRODUCTION PROCESS ORDER MATERIALS PREPARATION PACKAGING COMPONENTS W.H
  • 13. LEAN SIX SIGMA PROJECT 13 Issue work order Planning Revise work order, check validity Receive work order Prepare needed materials Receive & revise lot no. & qty. Machine run and setup FN Product QAProductionWHProduction Production Process map
  • 14. LEAN SIX SIGMA PROJECT 14 Month Utilization percent January 0.6 February 0.3 March 0.5 April 0.4 May 0.9 June 0.6 July 0.3 August 0.7 September 0.5 October 0.7 November 0.4 December 0.7 MIN 0.3 MAX 0.9 AVERAGE 0.6 σ 0.2 AV-3σ 0.0 AV+3σ 1.2
  • 15. LEAN SIX SIGMA PROJECT 15 Serial Contributors Number of breakdown hours Percentage Cumulative percentage 1 PVC 27.4375 20.591% 20.591% 2 Air 21.75 16.323% 36.914% 3 Carton m/c 20.9375 15.713% 52.627% 4 Sorting 16 12.008% 64.634% 5 m/c setting 13.4375 10.084% 74.719% 6 Waiting material 6.75 5.066% 79.784% 7 Aluminum 6.25 4.690% 84.475% 8 Sealing 4.1875 3.143% 87.617% 9 Blister m/c 4 3.002% 90.619% 10 Others 3.75 2.814% 93.433% 11 Maintenance 2.5 1.876% 95.310% 12 Administrative 2.5 1.876% 97.186% 13 Calibration 2.25 1.689% 98.874% 14 electricity 1.5 1.126% 100.000% Pareto analysis was constructed to show the contributors of Break down hours of Line II and the vital few contributors that affect Line II breakdown
  • 16. LEAN SIX SIGMA PROJECT 16 PVC Air Carton m/c Sorting m/c setting Waiting material Aluminum Sealing Blister m/c Others Maintenance Administrative Calibration electricity
  • 17. LEAN SIX SIGMA PROJECT 17 Pareto Analysis 0 20 40 60 80 100 120 PVC Air Carton m/c Sorting meshwar Waiting material Aluminum Sealing Blister m/c Others Maintenance Administrative Calibration electricity Contributors Numberofhours 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Cumulativepercentage Vital Few  As shown from the analysis the first three contributors shared by 52.6% of the problem (i.e. Vital Few contributors).  The team suggested to concentrate on the first 2 problems – PVC & Compressed Air – that contribute with 36.9% of the problem.  After argument we agreed to take the first two contributors in our consideration.
  • 18. LEAN SIX SIGMA PROJECT 18
  • 19. LEAN SIX SIGMA PROJECT 19 The project sponsor suggested the segregation of compressed air problem in a separate improvement subproject since the company will install a new compressor after 2 months. The team now had reached a common understanding of the process and had known that the major factor that increases the breakdown time is the PVC problems.
  • 20. LEAN SIX SIGMA PROJECT 20 MONTH PVC Stoppage hours UTILIZATION JAN 2 56.90% FEB 4 31.80% MAR 2.5 50.70% APR 2 43.80% MAY 0.5 87.00% JUN 2 63.60% JUL 5 26.30% AUG 1.5 70.30% SEP 2.5 54.00% OCT 1 74.00% NOV 3 44.40% DEC 1.5 71.00%
  • 21. LEAN SIX SIGMA PROJECT 21 R² = 0.8817 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% 100.00% 0 1 2 3 4 5 6 UTILIZATION UTILIZATION Linear (UTILIZATION)
  • 22. LEAN SIX SIGMA PROJECT 22 SUMMARY OUTPUT Regression Statistics Multiple R 0.939007837 R Square 0.881735717 Adjusted R Square 0.869909289 Standard Error 0.064849747 Observations 12 ANOVA df SS MS F Significance F Regression 1 0.313546103 0.313546103 74.55638309 5.99727E-06 Residual 10 0.042054897 0.00420549 Total 11 0.355601 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Intercept 0.870650544 0.040402482 21.54943194 0.0000000 0.780628204 0.960672884 0.780628204 PVC -0.134902056 0.015623422 -8.634603818 0.0000060 -0.169713208 -0.100090903 -0.169713208