CONTINOUS REDUCTION OF COST USING LEAN-SIGMA TOOLS

1. Cost Reduction Through 5S or 6s

The companies lean -sigma start a continuous improvement program is fundamentally through improved houses keeping
Using the principles of 5S or 6 S to create and maintain a workplace that becomes a regular clean safe and has a high performance.
5S, allows anyone to separate conditions of normal and abnormal is the foundation for continuous improvement, zero defects , Reduction of costs and to create a safe working area and comfortable. 5S is also a systematic approach to improving the working environment,
Processes and products by involving employees on the plant floor or (production line).

5S is a continuous improvement program which has the following acronyms:

• Sort : Explicitly separating the items needed for the items that are not needed, And then remove items unnecessary items from the workplace.
• Seiton (Stabilize, Straighten, Set in order, Simplify): Storing items needed in the right place to be easily retrieved if used.
• Seiso ( Shine, Sweep ) : Maintaining the work area to keep them clean and tidy
• Seiketsu (Standardize): Standardizing the practice 3S ( seiri, Seiton, Seiso ) Mentioned above
• Shitsuke ( Sustain , Self-Discipline ) : Make discipline into a habit by following established procedures.

If we add Safety into the 5S, continuous improvement program that became 6S, that is Sort, Stabilize/Straighten, Shine, Standardize, Safety, and Sustain. When next we add more lean-Sigma 5S will be 7S, that is Sort, Stabilized,/Straighten, Shine, Standardize, Safety, Six Sigma (Lean-Sigma) and Sustain.
5s

condition Before and After Implementation 5s
Implementation 5S or 6S
before after

S1: Sort

Objective: Remove or dispose of all items that are not used anymore in carrying out a task or activity in the workplace. If an atom is not a sport if they are used or not , the black need to be removed from the workplace, Or stored in warehouses Furthermore, if actually not used anymore can be discarded. Implementation S1 (Sort) can use the Red Tag system is the method for identifying information and goods in a work area that is no longer needed in carrying out their daily work. Every Red -tagged item is recorded the date and transferred to a storage area or warehouse . If the item was not used after a certain period , for example between 1 to 6 months, the items can be discarded .

sort

S2: : Stabilize (Set in order Simplify)

Objective : organize or arrange the items required in the work area , then identify
and label or mark , so that everyone can find items that are easy and quick .
s3

S3: Shine

Objective : keep or maintain in order to keep the work area clean and tidy ( shine ) Shine Cleaning Plan is shown in the chart VIII.5.
Some of these steps can be performed :

1. Specify the shine targets: Note the safety and security of work , report an unsafe condition , wipe the floor where the shadowboard tools , etc
2. Establish a timeline to implement the housekeeping and in charge.
3. The procedure to perform daily shane process continuously .
4. Set a regular inspection period to maintain continuity shine targets for equipment , machines , computers , furniture , etc.
s13

S4: Standardize

Objective : standardize or create consistency of implementation S1
( Sort) , S2 Stabilize , Set in order , Simplify ) and S3 ( Shine ) . It means doing the right thing in the right way every time.
Some tips for Standardize are :
1. Reviewing procedures done to Sort, Stabilize and Shine (3S) And include elements of 3S into daily activities .
2. Using visual process controls and visual clues whatever is appropriate to help people remember or understand about the things that happened and maintain 3S has been applied.
3. Creating 5S Agreements to reflect the decisions about who would be responsible for what tasks , etc.

s4

S5: Sustain

Objective : ensure the success and continuity of 5S ( or 6S , if included safety , or 7S , if it has adopted Lean – Sigma ) as a discipline.
1.Create a 5S audit form ( or 6 S ) to monitor the results that have been achieved . 6S audit form shown in the chart VIII.6 , while the 5S audit VIII.7 shown in the chart .
2. Set schedule to perform periodic audits 5S or 6S,
At least weekly at supervisor level and every month at the management level .
3. Celebrating the successful implementation of 5S or 6S program and continuous performance
improvement .

Untitled-5

S6: Safety

Objective : To give employees a safe working practices and procedures that takes into account health and safety to prevent accidents ( Zero incident ) .

s6

2. Cost Reduction Through Kaizen Blitz

Performance improvement program for the reduction of the cost of continuous improvement requires a commitment that involves aspects manusian
( motivation ) and technological aspects ( technique) are balanced. Kaizen is a term in Japanese that interpreted as an improvement was constantly
( continuous improvement). Kaizen spirit is high in Japanese firms have made them thrive and excel in many areas of life , especially in terms of increased quality and productivity . Kaizen is basically a unified view comprehensive . and integrated aiming to implement continuous improvement . The spirit of Kaizen is based on the following views:

1. Today should be better than yesterday and tomorrow must be better than today .
2. There should not be a single day without improvement / enhancement
3. The problem that arises is an opportunity to carry out the repair / improvement
4. Respect for the repair or improvement though small .
5. Repair / improvement should not require a large investment .

In implementing Kaizen , we can use the guide to ask 5W – 1H as follows :

WHO?

1. Who is implementing Kaizen ?
2. Who performs the Kaizen ?
3. Who should implement Kaizen ?
4. Who else can implement kaizen ?
5. Who else should implement Kaizen ?

WHAT?

1. What should be done to kaizen ?
2. What is being implemented in a Kaizen ?
3. What should be done for the sake of Kaizen ?
4. What else can be implemented in a Kaizen ?
5. Moreover, that should be implemented in a Kaizen ?

WHERE?

1. Where Kaizen will be implemented ?
2. Where Kaizen is being implemented ?
3. Where Kaizen should be implemented ?
4. Where else Kaizen can be implemented?
5. Where else Kaizen should be implemented ?

WHEN?

1. When will implement Kaizen ?
2. When should implement Kaizen ?
3. When else Kaizen can be implemented?
4. When else should be implemented Kaizen ?

WHY?

1. Why implement Kaizen
2. Why implement Kaizen there?
3. Why implement Kaizen at that time ?
4. Why implement Kaizen in that way ?

HOW?

1. How to implement the ” Kaizen ” ?
2. How should implement the ” Kaizen ” ?
3. Can the same method used for other fields ?
4. Is there another way that is easier and cheaper to carry out the ” Kaizen “?

Kaizen Blitz

Kaizen Blitz Is a method of rapid improvement , generally in just one week,
performed on a limited area of the process , for example work cell ,
Or other work areas .
Aim Kaizen Blitz is to use innovative ideas to eliminate waste or activities are not value-added work activities.

Results of the results achieved through the Kaizen Blitz is :

• Setup time reduction: 70 – 90%
• Productivity improvement: 20 – 60%
• Process time reduction: 40 – 80%
• Inventory reduction: 30 – 70%
• Walking distance reduction: 40 – 90%

3. Continuous Cost Reduction Through Total Productive Maintenance ( TPM )

Total Productive Maintenance ( TPM )
Not the same as the maintenance department who perform repairs for damaged engine (break down maintenance) . TPM is the main pillar for building a Lear – Sigma .
If a time machine to operate (machine uptime ) is not predictable and if process capability is low, we will not be able to meet fluctuating customer demand and versatile.
Thought TPM instead on repairing the machine , but the prevention of damage to the engine to improve engine life. For this reason , many people prefer to call TPM as Total Productive Manufacturing or Total Process Management.

Thinking of facility equipment and machinery productivity is as we think of our cars : the car was ready to go when we need it , but the car did not need to be running all the time in order to be productive. By using this concept , the machines have to be ready when we need to activities of production and the machines have to be turned off ( shutdonw ) in such a way to be ready next time.

Thus TPM is a process to maximize the productivity of equipment and machinery throughout the life of equipment and the machine. Goal TPM is to maximize the Overall Equipment Effectiveness ( OEE ) to reduce unplanned equipment downtime , So that the binding capacity of the equipment and the cost decreases. The creation of a work environment where quality improvement cost, delivery and morales ( QCSDM ) continuously through the active participation of all employees and management is a step towards TPM. Lean Sigma companies that implement strategies to identify and eliminate waste, often find that the unscheduled downtime of equipment ( unscheduled equipment donwtime ) , hidden in the process , come to the surface as the root cause of problems in quality, cost, delivery , safety and morale ( QCSDM ). Efforts to implement 5S or 6S program and Kaizen Blitz , as stated in the previous section , is a good first step to building a leading company TPM Lean – Sigma ( Lean – Sigma Enterprise System) . Measurement of Overall Equipment Effectiveness or OEE will tell us about how TPM takes place , not just a measure of time is still operating ( equipment uptime ) and production ( throughput ) . In TPM , machine operators MUST realize that the treatment machine is a MAJOR TASK them , and DO NOT remove the responsibility for maintenance parts . TPM relating to the empowerment of employees ( employees empowerment) to take responsibility for the work , so that the machine operator can be likened to a car driver MUST be responsible for the daily care of the machine , for example, keep the engine , checking and filling or give lubricating oil, etc . COLLABORATION TEAM is the essence of togetherness in the TPM .

TPM is more directly related to production, while the maintenance function as a support . One – Piece flow with zero defect requiring a very high process capability , along with error proofing or POKAYOKE (anti error ), allows us to perform the reduction or elimination of inspection which of course will lower production costs on an ongoing basis . If the process variation reduced the variation that would improve the process capability . In this part of operation and maintenance MUST be actively involved to prevent degradation of the process capability index so capable maximize OEE .
Some of the benefits of the implementation of the TPM system :

• Reduction of unplanned downtime
• Increasing production capacity
• Reductions style (maintenance costs ) and extend the life or the life of equipment
• Machine operators are actively involved in maximizing the performance of maintenance
• Establish plans offering (Maintenance Plan) , including preventive maintenance and (predictive maintenance)
• Improving the productive quality
• Improving Overall Equipment Effectiveness (OEE)

Note :
The definition of (preventive maintenance) is the maintenance performed at intervals specified by the time ( eg every month ) or use ( eg, each producing 1000 units ) . While (predictive maintenance) is the maintenance performed on treatments based on signals or techniques decrease the performance of the equipment.

4.Continuous Cost Reduction Through Design For Six Sigma ( DFSS )

The following will discuss briefly about the concept Design For Six Sigma ( DFSS ) . If it is known that the Six Sigma approach using DMAIC ( pronounced ” Duh – May- ick ) , namely : Define, Measure , Analyze, Improve and Control, then approach the Design For Six Sigma ( DFSS ) using DMADV method , namely Define, Maesure , Analyze , Design , Verify . Some of the major differences between Six Sigma ( DMAIC ) and Design For Six Sigma ( DMADV ) are shown in the following sections .

dfss