Process Door Analysis

Lean is a continuous improvement methodology which focuses on minimizing

or eliminating the waste from the process

Value Adding Activities: The activities for which your customer is willing to pay
for

Non Value Adding Activates: The activities which consume resources but still do
not add any value to the system

Business Enablers: Necessary NVA

Waste:Un ncecessary activities wt we perform in the process

8 Types of Wastes
• Transportation – unnecessary movement of material
• Inventory – Inventory above the safety stock level
• Motion - unnecessary movement of humans in the workplace
• Un utilized human intellect -
• Waiting Time -
• Overproduction -
• Over Processing -
• Defects -
Lean Principles
• Identify Value
• Map the value stream – Value Stream Mapping(VSM)
• Create Flow
• Establish Pull
• Seek Perfection –
• Mistake proofing - Poka Yoke
Add continuous improvement as a part of org. culture
 VSM – Value Stream Mapping
Objective: To identify total % value add in the process

Total LT = 120 Mins

Order Dispatch

P1 P2 P3

C/T = 10 Mins C/T = 10 Mins C/T = 5 Mins

Total % Value Add in the process – Process Cycle Efficiency(PCE)

PCE = Total Cycle Time/Total Lead Time
PCE = VA/VA+NVA
= 25/120
VA – Value adding Time
PCE= 20.8%
VSM
• Objective of VSM: Is to identify Value adding and Non Value Adding
activities in the process and to determine the % value add in the
process.
LT
Order Dispatch

Process (P)

C/T
Create Flow
Flow is movement of material or service from supplier end to
customer end.
• Continuous Flow

P1 P2 P3

5 Mins 10 Mins 5 Mins

P2_
 #4 Establish Pull
KANBAN – Card
Board
Bill KANBAN – Card, Bill
Push
Board
No. of Units. Material
No.Flow
of Units.
Specification Specification Customer
Supplier
Delivery Date Information FlowDate
Delivery
KANBAN – Card Bill
Board
No. of Units.
Specification Raw Material Production Unit Sales and Marketing
Delivery Date

Material Flow
Pull
Information Flow
Improve
Objective: To identify solutions and implement the same.
• Identification of solutions
• Mistake Proofing of solutions Y(CTQ) X1
• Risk Proofing of Solutions X2
X3
• Trial Implementation of solutions X4

• Full Scale implementation solutions

Identification of Solutions

Creative Approach Analytical Approach

Brainstorming Design of
Experiments(DOE)
Brainstorming

• 1) Identifying solutions(Capturing the solutions/Ideas)

• 2) Validating and Prioritization of solutions(Evaluate the
solutions/Ideas)
Identifying Solutions
• Channeling
• Analogy
• Anti solution
• Brainwriting
• Round Robin Method
 Evaluation and Prioritization of Solutions
Nominal Group Technique (NGT)

Solutions SME 1 SME2 Total

Solution 1 5 4 9 Cut off value -
Solution 2 1 3 4 6
Solution 3 5 5 10
Solution 4 4 3 7

Criteria Based Matrix (CBM)

Criteria Weightage Solution 1 Solution 2
Safety 10 5 50
Reversibility 9 1 9
Cost 8 3 24
Time 7 1 7
Total 90 70
Mistake Proofing of the solution
• Mistake proofing: Making a process or a product such that, while
using the same you cannot do a mistake intentionally also.
• Poka Yoke – Fool proof or mistake proof
Failure Mode Effect Analysis (FMEA) – Risk
Proofing
First we identify 4 things:
1) If we have process P, what are the different ways in which this process can fail
2) If process P is failing in a particular way, then what is the effect it would generate
3) What can be the probable causes which make the process to fail in this particular
way
4) If Process P is failing in particular way due to some cause X, then as of now in my
process do I have controls to detect this failure.

Way A Effects Cause X Control 1

Process P Way B Effect Cause Y Control 2

Way C Effect Cause Z Control 3

FMEA Worksheet

Process Potential Potential S O D R Actions S O D R

Step/Part Failure Failure Potential Current P Recomm Actions P
Number Mode Effects E Causes C Controls E ended Resp. Taken E C E
N N
V C T V C T

RPN = Severity
X
0 Occu rrence
X
ection
Det

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14
 RPN = Sev*Occ*Det

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Severity Scale
RPN = Severity X Occurrence X Detection

High

Low

More the severity,

higher is the rating

© 2018 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
16
Occurrence Scale
RPN = Severity X Occurrence X Detection

High

Low
More often it occurs,
higher is the rating

© 2018 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
17
Detection Scale
RPN = Severity X Occurrence X Detection

Low

High
Lower the ability
to detect, higher
is the rating

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18
FMEA - Template

Process Potential Potential S O D R Actions S O D R

Step/Part Failure Failure Potential Current P Recomm Actions P
Number Mode Effects E Causes C Controls E ended Resp. Taken E C E
N N
V C T V C T

RPN = Severity
X
0 Occu rrence
X
ection
Det

0
Trial(Pilot) Implementation
• Simulation models of process
• Fix certain number of runs/Trials – 30 Trials
 Full Scale Implementation Plan
Solutions Responsibility Timeline Status
Solution 1(Kaizen 1) Team A
Solution 2(Kaizen 2) Team B
Solution 3 Team C

Kaizen: Small improvements which we do in our own

work area – (Problem Known and Solution Known)
5S
• It is a cont. improvement methodology which focuses on
standardizing, organizing and managing the workplace.
• Sort – necessary and un necessary items Red Tagged
Area
• Set in order – Every item has its own place
• Shine – Clean, you clean the workplace on regular interval
• Standardize – standardize the practice of first 3 S
• Sustain – Regular 5S Audits – Areas to improve and area’s doing good
Control Phase
Objective: Monitor and control the process

SPC – Statistical process control

Control Charts:

Walter Shewhart – Shewhart Charts

Xbar+3s
UCL – Upper control limit

3s
X Bar
CL

3s

LCL – Lower control limit

Xbar-3s
Process Parameter - Temperature

Initiate RCA – Root Cause Analysis

Root Cause Analysis: Fish
bone,5Why, 5W1H
Why
What
When
Where
which
How

1 2 3
Selecting Control Charts
TYPE OF DATA?

VARIABLE / CONTINUOUS DISCRETE /

ATTRIBUTE

Individual
measurements or Defect or Defective
subgroups?

Individual Subgroups Defectives Defects

I – MR Chart Subgroup < 10 Constant sample size? Constant sample size?

Yes No Yes No Yes No

X – Bar X - Bar
np-chart P-chart C-chart U-chart
R S chart
chart

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25
Normal distribution = (0.68)^15.

= (0.32)^8

Empherical rule of Normal Distribution, 68 95 99 rule

• X bar and R - Length
• X bar and S - Can
• NP – Bulb
• U – Typos

• Path – Stat – Control Charts – Variable chart(For variable Data), -

Attribute Charts(For Attribute Data)
Project Closure
• Statistical validation of results – Sigma level calculations, hyp. Test
• Project Handoff document – Modify the SOP or Introduce the new
SOP
• Cost Benefit Analysis – Calculate the net savings through project
• Financial Validation of the savings – Audited Savings
• Sponsor Signoff
• R&R
Agarwal, Vrinda <[email protected]>