Six Sigma Applied to Warehouse Operation

A chore Report on DMAIC App to cleanse W atomic number 18house Operation Undertaken At xxxxxxxxxxxxxxx store In fulfilment of coping stone trade union movement of Post Graduate lambskin in industrial Engineering (PGDIE) By Rajul Agarwal (103) Puneet Jain (107) PGDIE- 41 Under the focussing of Dr. K. Maddulety Professor NITIE, Mumbai National Institute of Industrial Engineering, Mumbai-400087 Ackno(prenominal)ledgement Too often we atomic number 18 so preoccupied with the destination, we for blend the steer light -anonymousI take this opportunity to carry on my sincere give thanks to HCCB, India for offering a unique platform to earn movie and garner knowledge in the correction of W behovictimization Management. I wish to guide my sincere and heartfelt gratitude to my guide Mr. Sudhakar Nair, W atomic number 18house Manager HCCB who guided, supported and encouraged me during the good tenure of the project. I sincerely thanks to Dr K. Maddulety, my faculty guide, who has been guiding me by dint ofout the project. 1. ad miniskirtstrator SummaryThis project illustrates an approach to address the complexities go about by beverage industry by identifying critical supply chain activities which indirectly affect node Satisfaction. The solution is establish on sextuplet Sigma carry outation through DMAIC Approach at these critical nodes. It has been realized through dissimilar experiments that guest faithfulness & group A Retention is very first gear in such industry and whence the client satisfaction is directly impact by crop unavailability. So the product availability is order to be a major concern hither as it directly affects the customers buying decision.It is observed that in this industry, output availability is majorly affected by the inconsistencies at the storage storage storage warehouse. This project particularly focuses on these warehouse fulfiles which include the transportation of goods from coif to warehouse, past storing goods at warehouse and fin all toldy dispatching of goods to the customers. Based on this we have attempt to provide a blue crisscross of possible ad new wavetages such as modify execute rates and better renovation take aims. An empirical study was conducted at XYZ drinking Company which produces carbonated soft drinks (CSD) and no.-Carbonated Beverages (NCB).Subsequently, its terminate warehousing operation deal was mute and DMAIC approach was used to improve the dish dynamics. In the measure bod, using transition talent outline it was establish that the warehouse extremity doesnt follow vi sigma levels owing to the high level of restoration/ spoilts and additionally there was a coarse area of improvement. Henceforth, Root cause outline was through with(p) to identify the various causes of restitution/ unsounds. The major causes identified here were pretermit of standardized operating procedures (SOP), over tummying & international ampere overl oading.In the implementation phase, an action plan separate bod wise, is proposed here so as to take into account variability caused by the deuce shifts in which the warehouse operates. A strict misrepresent postulate to be followed so as to maintain sise-spot sigma levels, for which p-chart type should be used in combination with proposed Warehouse Operation micro chip list. Table of Contents Acknowledgement 1 1. Executive Summary 2 2. belles-lettres Review 4 3. Introduction 4 4. wait on Mapping 5 5. coif Phase 6. 1 DMAIC project take up Worksheet 6. 2 CTQ tree 6. Voice of Customer 6. 4 Voice of headache 55566 6. Measure Phase 7. 5 information to be measured 7. 6 carry out sigma calculation 7. 7 Statistical drumhead of defectives 7. 8 support chart 7. 9 surgical operation electrical capacity epitome 667789 7. Analysis Phase 8. 10 Root get to psychoanalysis 99 8. Implementation Phase 9. 11 Proposed action plan 9. 12. 1 Dividing plow 9. 12. 2 Major Changes Id entified 10101010 9. moderate Phase 10. 12 identifying the conditionling elements 10. 13 FMEA 10. 4 SPC charts 11121415 10. Conclusion 16 11. References 16 2. LITERATURE REVIEW 1. DMAIC Approach to reform the Capability of SMT Solder Printing handle This melodic theme implements the restore-Measure-Analyse- emend-Control (DMAIC) approach to improve the capability of the solder paste printing process by reducing thickness variations from a nominal value. Process mapping and identifying refer QCH are carried out in the pose phase here, while mean (x) and cultivate R control charts followed by the estimates of process capability indices are adopted in the Measure phase.Then, the Taguchi method including L18 orthogonal troops (OA), signal-to-noise (S/N) ratio, and analysis of variance (ANOVA) for S/N ratio is implemented in the Analyse phase. Taguchis two-step optimization is conducted in the Improve phase. Finally, the x and R control charts for solder thickness are used in the Control phase. This stem was used to understand the DMAIC implementation process methodology followed by any process. The insights obtained were how Process capability analysis was carried out and what is more how use of control charts be validated. . Applying Six Sigma Techniques in Plastic Injection mete Industry This paper presents an approach to implement a six sigma technique to diminution the atom rate in a plastic injection molding plant. The particular peters used here are SIPOC, MSA, FMEA, P-Control Charts and speculation Testing. In this incident study we equation the average scrap rate for the earlier study period with the average scrap rate of the After study period. This paper was used to understand the use of p-charts and how they hobo be applied in processes were defectives are being looked at.The insights obtained were effective use of FMEA and p-charts in such processes. 3. Introduction HCCB operates a warehouse in Sewri. It caters to South and cent ral Mumbai. It has a capacity of nigh 2000 Pallets or approximately 3-4 Lacs bottles (includes Recyclable Glass Bottles + pet bottles + raft). It has nigh 35 mini trucks which daily carries around 38 thousand of bottles dispatched from the warehouse and take back it to the different stockist/Retailers. The warehouse operates in two shifts every afternoon consignment comes from plant to the warehouse which is unloaded there and then stacked.Every morning at a condition place called floor the pallets are case-hardened inspected and then containers are loaded to the mini trucks which hit the sack it to the stockists/retailers. 4. Process Mapping When a truck containing pallets of soft drinks is loaded at the plant it is fully inspected and then apparent movement towards the Warehouse * Once it is feeded to the Warehouse, forklifts unload the pallets and then arrange it in the warehouse * first in first out is followed for outflow of goods Now the pallets are arrange at a floor where all the pallets are inspected * Simultaneously with critique carriers (small trucks) come on on arranging inside(a) the warehouse * During recapitulation if any damage is rear then it is replaced by the same(p) heady item * After inspection the containers are loaded (Manually) to the carriers * While loading close to bottles gets damaged that is also replaced by the white one and a count is kept for damaged goods * Once the loading is done the carriers move towards their destiny i. e. both to Stockist/retailers 5. Define Phase 4. 1 DMAIC project take on worksheetDMAIC Project Charter Worksheet Project epithet To reduce the damages& improve the productivity of warehousing process Project GuideProf. Madhu Letty,MrSudhakar Nair aggroup Members Rajul Agrawal, Puneet Jain air Case snip the cost of warehousing & last slub legal transfer Problem controversy The labor movement is to identifythe sigma level of warehousing process including last mile deliv ery as a angiotensin-converting enzyme processand then analyse the process and suffer the scope of improvement Goal StatementTo improve the warehousing process & reduce damages 4. 2 CTQ manoeuvre Reduce damages Men apparatus Method * right(a) Training accomplishment Curve * Commitment * Proper criminal aliment * Proper Stacking * give of Rodent boxes * limited review 4. 3 Voice of Customer here(predicate) the customers are stockists/retailers to whom the goods are delivered. The Voice of Customer (VOC) is used to describe customers needs and their perceptions of product or service. The customer requirements from process and product are * No damage/deformed item should r apiece to customer * If any damage is found then on the spot commutation * Customers dont want to bear the track of damaged items which needs to be replaced next time when delivery van entrust come 4. Voice of Business VOB is just aboutthing which is critical from the perspective of stakeholders (WH se managers, Operators, All sorts of employees and so forth ) in the business. * Improve profitability * Reduce cost * Least damages * Improve fill rate * Improve customer satisfaction 6. Measure Phase 5. 1 Data to be measured The quest table shows the defective items noted in the month of October- November. From this data we calculated the defective equilibrium & defects per million opportunities. big Items Total Items loaded Defective proportion DPMO one hundred forty-five 392732 0. 000369209 369. 2087 55 392700 0. 000394703 394. 7033 132 378243 0. 000348982 348. 982 159 332345 0. 000478419 478. 4185 165 402389 0. 000410051 410. 051 145 345673 0. 000419472 419. 4716 123 326789 0. 00037639 376. 3897 190 389023 0. 000488403 488. 403 120 334565 0. 000358675 358. 6747 110 324123 0. 000339377 339. 3773 121 306543 0. 000394724 394. 7244 156 402489 0. 000387588 387. 5882 212 437698 0. 000484352 484. 3522 138 290873 0. 000474434 474. 4339 112 238945 0. 000468727 468. 7271 119 367545 0. 00032377 323. 7699 129 263421 0. 00048971 489. 7104 56 463752 0. 000336387 336. 3867 145 375643 0. 000386005 386. 0048 123 342356 0. 000359275 359. 2751 90 289532 0. 000310846 310. 8465 225 462163 0. 000486841 486. 8412 121 284532 0. 00042526 425. 2597 175 404512 0. 00043262 432. 62 180 403212 0. 000446415 446. 4153 127 329261 0. 000385712 385. 7122 212 431962 0. 000490784 490. 7839 132 337961 0. 000390578 390. 5776 198 326781 0. 00060591 605. 9104 109 392861 0. 000277452 277. 4518 5. 2 Process Sigma unhurriedness clean no. of items loaded each day = 360418 Average no. of defective items per day = 148Average defective proportion = 0. 000411328 Average DPMO = 411 Value of Sigma = 4. 9 Since the process sigma is 4. 9 which is less than 6. Now the next task is to analyse the process to find the scope of improvement. 5. 3 Statistical summary of No. of defective items observed at various days Observations * Since P-value >0. 05 so the data passes the normalcy test * From the hist ogram it is visible that frequency diffusion of defective data wad be approximated to normal distribution * Since the data target be approximated as normally distributed we back apply process capability and SPC analysis . 4 Control Chart hither in this case when the goods are inspected either they will be accepted to be shipped or simply discarded. So here we are not concerned with the no. of defects but concerned with the non-conformances (defectives). So the P-chart has been selected for SPC analysis- Observations * The above P-chart shows that all the observations lie inside the natural control limits. * It gutter be said that the process is under statistical control. * Since the process is under statistical control we send word jib for its capability. 7. Process Capability Analysis using MINITAB 15 * The craving is to minimise the damages to nil so the target valueis entrap to be zero. Observations * Process sigma = 3. 34 * PPM Def = 410 which is lesser than 3. 4 ppm 7. Analysis Phase 6. 1 Root Cause Analysis 6 Implementation Phase 7. 1 Proposed action at law Plan 7. 1. 1 Dividing the whole process of warehousing to deliver goods to the stockist/retailers into 4 coifs The process is divided into 4 maps on the basis of people& machines tough. In stage 1 goods are transported to the warehouse by one bunch of people (3 PL).Since warehouse operates in 2 shifts so when the trucks come from plant to warehouse that is unloaded by different set of people & in stage 3 stacking at floor+ inspection + loading containers to carriers are done by different set of people (working in 2nd shift). In stage 4 the goods transported from warehouse to stockists/retailers by different set of people and different carriers are involved. The suggest of dividing the whole process into 4 stages is to get more specific causes stage by stage and to get more insights.Since the different people and machines are involved in each stage so or so specific plans may be roll in place to reduce the damages. The pursual table shows the different causes and actions Stage Causes Action Plan 1 * In-Transit Damages * badly Road Conditions * Mishandling by the operators * Since in stage 1 the transportation is done by the 3PL so while selecting 3PL service supplier company can bring some clauses in the agreement related to lower limit breakage acceptable * Operators can be nstructed to follow the best route * attention of carriers periodically after a contract time 2 * Jerk in forklift * Over stacking * Im suitable readiness * Mishandling by the operators * Establish SOP for the forklifts operation * biyearly maintenance of forklifts * Company currently uses diesel motor run forklifts that can be replaced by battery operated forkliftswhich require less maintenance * come through bonuss to the operators for achieving a certain level of damage free work * go forth ergonomically fithandles to the containers * Pet bottle packets as shown under gets unwrapped sometimes that needs proper incase * Above kind of packaging can be either replaced by carton (but that would not be a cost effective solution) or same packaging can be meliorate 3 * Improper operation/ flip in forklift * Improper inspection * Mishandling * try not to rotate the people involved in inspection so that their tuition curve makes them more efficient in that particular task * Provide incentive to the employees * Encourage employees 4 * Overloading * Improper truck operation * block overloading * Proper training to the truck operators * Hire experienced operators * Provide incentives Environmental Causes * Rat Bite * oddly tetra packed drinks are attacked by Rats * physical exercise Rodent boxes to kill the rats * Daily layover the rodent boxes & clean it if necessary 7. 1. 2 Major changes which can be brought in future to improve the overall process * SOP for forklift operations * Proper maintenance of forklifts and Trucks * Use of battery opera ted forklifts * Avoid overloading * Avoid over stacking 7 Control Phase 8. 1 Identifying the Controlling ElementsThe Critical-To-Quality Elements needs a proper control and inspection and hence the pastime Steps can be taken for the same 1. genitals Lift Inspection Check piece of paper 2. Training Check incline/ steadfast Knowledge Tests 3. Rodent/ Insects Check List 4. Better Stacking Procedures a. Increasing the strength of the pallets from by increasing the cross pieces by 8 from 5 for the same 5cm x 10cm boards. b. In case of need to over stack during peak demand, we can keep the crates at a cross position so that the load gets distributed 8. 2 Failure style and Effect Analysis (FMEA) Use of FMEA tool for better analysis of damage reasons will help establishing a better control procedure. FMEA Flow Diagram 8. 3 Use Statistical Process Control (SPC) ChartsThe case here is for graphing defectives for a varying hoagy group set. Hence use of p-chart should be used for continu ous control. It will check when the variation is natural and when it needs correction. The following excel template can be used where directly data can be entered and the resulting p-chart will be generated. outstrip template for Formulating p-chart 9. ESTIMATED BENEFITS OF PROJECT The biggest benefit of the project is in terms of reducing the luck of product unavailability downstream. The probability of defects can be drastically decreased and go on in specification limits. * 4-Stage Implementation phase for reducing defectives * Increased Sigma Levels approaching six sigma standards Increased Customer satisfaction and Product availability * Laid down model Operating Procedures (SOPs) for better warehouse operations control 10. CONCLUSION The reasons for the excessive defects are found. Over-stacking, Over-Loading & improper forklift operation were found out to be prime reasons using Cause and Effect Diagram. These were considered the CTQs for the warehousing operation. Proje ct benefits were estimated and it is found that this improvement can bring the improvement in fill rate. 11. REFERENCES * www. dmaictools. com * www. sixsigmatutorial. com * www. sixsigma. in * Six Sigma Way ? Team Field book by slam S. Pande, Robert P. Neuman and Roland R. Cavanagh * Six Sigma for managers by Greg Brue