Lean 6 Sigma -LHM Reduction of Rework Parts for Pin Project presentation

August 20th, 2016 Reduction of Rework Parts for Pin Customers Material Suppliers Hardware Suppliers Employee Agencies Engineering Drawings Customer Standards Customer Specification Purchase Orders Parts Conformance Parts Non-Conformance MRB Report COFC Rework SOPs Vendor Performance Index Customers Vendors LHM Finishing Machine Work Toll Gate Inspection & Processing Final Inspection at LHM Rough Machine Work Withdraw Material DEFINE LHM SIPOC DIAGRAM DEFINE MEASURE Data Collection {5C22544A-7EE6-4342-B048-85BDC9FD1C3A}Part Number Name Aircraft QTY/YR $/PC Processing $/PC Process Sequence Min. Batch QTY Batches/YR Weight [lbs] 161Axxxx-1 Pin 737-X 1500 400 150 NI/MPI/SP/CR/GR/CAD/MPI/PR/P 80 18 1.97 Shipping Cost: $0.25/lb Workforce Cost: $75/hr Average part rework/ batch: 4 Average data from 2010 -2015 Average 5% defective Minimize part non-conformances after parts are in their finished state Fishbone Diagram – Causes & Effects of Low Customer Satisfaction Surface Coating Personnel not trained properly Method Procedure for Packaging not Updated Visual Inspection not required before delivery Manpower Machine Operator did not follow procedure External presence (Vendor) damaged parts Poor Material Material Environment Measurement Too many staffs in the production area Operator did not follow procedure Sensor Malfunction Broken Equipment Broken Equipment Parts moved, arranged incorrectly Additional Activities ANALYZE IMPROVE CONTROL Proposed Solutions Initiate use of designated part packages PO’s to be certified by vendor with critical product dimensions before sending it back to LHM Reduce non-conformances by regular audits of the vendor’s progress by LHM’s Quality Manager Shipment of an extra set of calibrated gauges to be sent to the vendor Minimized source of defects for smaller parts Help transition into dealing with larger part orders in the future The team will be able to additionally identify at least 30 % of the non-conformances saving LHM approximately $50, 000 per year. Project Outcome Questions