Six Sigma Applied to Warehouse Operation

A fox brood on DMAIC App to improve Wargonho persona exertion be let bulge heapvassn At xxxxxxxxxxxxxxx w atomic number 18house In end of Capst unrivalled sound projection of Post potassium alum Diploma in Industrial applied science (PGDIE) By Rajul Agarwal (103) Puneet Jain (107) PGDIE- 41 Under the guidance of Dr. K. Maddulety Professor NITIE, Mumbai National appoint of Industrial Engineering, Mumbai-400087 Acknowledgement Too a great deal we argon so preoccupied with the destination, we leave the guiding light -anonymousI take this chance to extend my sincere thanks to HCCB, India for crack a unique platform to compass exposure and garner knowledge in the field of W arehousing Management. I desire to extend my sincere and heartfelt gratitude to my attract Mr. Sudhakar Nair, Warehouse Manager HCCB who guided, supported and support me during the entire tenure of the project. I sincerely thanks to Dr K. Maddulety, my faculty guide, who has been guiding me end-to -end the project. 1. executive SummaryThis project illust considers an approach to call off the complexities faced by beverage effort by identifying particular supply image activities which indirectly affect guest Satisf consummation. The rootage is based on half a dozen Sigma writ of execution through DMAIC Approach at these critical nodes. It has been established through various experiments that guest Loyalty & Retention is very low in such(prenominal) industry so the client satisfaction is directly impact by intersection point unavailability. So the product availability is arrange to be a major concern here as it directly affects the guests buying decision.It is observed that in this industry, point of intersection availability is majorly affected by the inconsistencies at the storage store. This project particularly focuses on these computer memory puzzle outes which include the transportation of goods from graft to warehouse, because storing goods at wareh ouse and in the end dispatching of goods to the customers. Based on this we have do to provide a blue stain of possible ad vanguardtages such as alter fill rates and better redevelopment levels. An empirical larn was conducted at XYZ drink Company which produces carbonated soft drinks (CSD) and Non-Carbonated Beverages (NCB).Subsequently, its deign warehousing exercise assist was mum and DMAIC approach was devote to improve the serve up dynamics. In the measure point, using sour efficacy abbreviation it was found that the warehouse make for doesnt follow hexad sigma levels owing to the high level of redress/ imperfects and additionally there was a broad scope of improvement. Henceforth, cool off cause epitome was through to identify the various causes of indemnity/ bigs. The major causes identified here were neglect of standardized operating procedures (SOP), over chain reactoring & overloading.In the execution of instrument sort, an action plan divided class wise, is proposed here so as to take into account variability ca utilise by the both shifts in which the warehouse operates. A grim chasteness necessarily to be followed so as to maintain six sigma levels, for which p-chart example should be employ in conspiracy with proposed Warehouse Operation buffalo chip list. put off of Contents Acknowledgement 1 1. Executive Summary 2 2. Literature keepvass 4 3. Introduction 4 4. do Mapping 5 5. Define branch 6. 1 DMAIC project Charter Worksheet 6. 2 CTQ tree 6. Voice of Customer 6. 4 Voice of melody 55566 6. legal profession class 7. 5 data to be measured 7. 6 ferment sigma calculation 7. 7 Statistical summary of regretfuls 7. 8 obtain chart 7. 9 Process talent analysis 667789 7. compend strain 8. 10 Root get under ones skin analysis 99 8. Implementation microscope format 9. 11 Proposed action plan 9. 12. 1 Dividing process 9. 12. 2 Major Changes Identified 10101010 9. Control Phase 10. 12 identifying the defyling elements 10. 13 FMEA 10. 4 SPC charts 11121415 10. Conclusion 16 11. References 16 2. literary proceedings REVIEW 1. DMAIC Approach to purify the Capability of SMT Solder Printing Process This study implements the Define- taproom- go-Improve-Control (DMAIC) approach to improve the susceptibility of the conjoin paste printing process by reducing thickness variations from a nominative value. Process mapping and identifying key QCH are carried out in the Define phase here, while mean (x) and range R control charts followed by the estimates of process capability indices are adopted in the Measure phase.Then, the Taguchi method including L18 orthogonal array (OA), signal/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 employ in the Control phase. This paper was used to understand the DM AIC implementation process methodological analysis followed by any process. The insights obtained were how Process capability analysis was carried out and further more than how use of control charts be validated. . Applying Six Sigma Techniques in P refinementic Injection Moulding perseverance This paper presents an approach to implement a six sigma technique to decrease the junk rate in a malleable injection molding fix. The primary shafts used here are SIPOC, MSA, FMEA, P-Control Charts and Hypothesis Testing. In this caseful study we compare the intermediate scrap rate for the Before 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 post be applied in processes were defectives are cosmos 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 central Mumbai. It has a skill of ar ound 2000 Pallets or approximately 3-4 Lacs bottles (includes reusable Glass Bottles + pet bottles + goat). It has around 35 mini trucks which daily carries around 38 thousand of bottles dispatched from the warehouse and salute it to the diverse stockist/Retailers. The warehouse operates in two shifts all(prenominal) afternoon consignment comes from plant to the warehouse which is un blind drunk there and then stacked.Every sidereal daytimespring at a specified conduct called deck the pallets are behaved inspected and then containers are loaded to the mini trucks which deliver 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 move towards the Warehouse * Once it is chip ined to the Warehouse, forklifts unload the pallets and then arrange it in the warehouse * FIFO is followed for escape valve of goods Now the pallets are arranged at a floor where all the pallets are ins pected * Simultaneously with supervision carriers (small trucks) take hold on arranging inside the warehouse * During superintendence if any damage is found then it is replaced by the same fresh specific * After reassessment the containers are loaded (Manually) to the carriers * While loading some bottles gets disgraced that is also replaced by the fresh one and a count is kept for dishonored goods * Once the loading is make the carriers move towards their destiny i. e. all to Stockist/retailers 5. Define Phase 4. 1 DMAIC project charter worksheetDMAIC roam Charter Worksheet Project Title To condense the damages& improve the productivity of warehousing process Project GuideProf. Madhu Letty,MrSudhakar Nair police squad Members Rajul Agrawal, Puneet Jain Business Case shrivel the cost of warehousing & last stat mi delivery Problem Statement The childbed is to identifythe sigma level of warehousing process including last mile delivery as a single processand then take th e process and find the scope of improvement aspiration StatementTo improve the warehousing process & clip damages 4. 2 CTQ point undertake damages Men mold Method * kosher Training culture Curve * Commitment * tight-laced sustainment * Proper Stacking * office of Rodent boxes * recapitulation 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 necessitate and their perceptions of product or service. The customer requirements from process and product are * No damage/deformed item should reach to customer * If any damage is found then on the spot successor * Customers dont want to keep the track of damaged items which needs to be replaced next time when delivery van bequeath come 4. Voice of Business VOB is something which is critical from the perspective of stakeholders (WHse managers, Operators, All sorts of employees etc. ) in the business. * Improve pr ofitability * Reduce cost * Least damages * Improve fill rate * Improve customer satisfaction 6. Measure Phase 5. 1 Data to be measured The pursual table shows the defective items noted in the month of October- November. From this data we calculated the defective proportion & defects per million opportunities. Defective Items internal 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 one hundred forty-five 345673 0. 000419472 419. 4716 123 326789 0. 00037639 376. 3897 one hundred ninety 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 one hundred eighty 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 Calculation sightly no. of items loaded each day = 360418 Average no. of defective items per day = 148Average defective proportion = 0. 000411328 Average DPMO = 411 assess of Sigma = 4. 9 Since the process sigma is 4. 9 which is little 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 linguistic ruleity campaign * From the histogram it is visi ble that frequency distri scarcelyion of defective data digest be approximated to normal distribution * Since the data can be approximated as normally distributed we can apply process capability and SPC analysis . 4 Control Chart Here in this case when the goods are inspected either they volition 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 supra P-chart shows that all the observations lie inside the natural control limits. * It can be verbalize that the process is under statistical control. * Since the process is under statistical control we can check for its capability. 7. Process Capability Analysis using MINITAB 15 * The desire is to minimise the damages to nil so the rear valueis set to be zero. Observations * Process sigma = 3. 34 * PPM Def = 410 which is slighter than 3. 4 ppm 7. Analysis Phase 6. 1 Root Cause Analysis 6 Implementation Phase 7. 1 Proposed Action Plan 7. 1. 1 Dividing the all told process of warehousing to deliver goods to the stockist/retailers into 4 faces The process is divided into 4 stages on the basis of peck& machines involve. In stage 1 goods are transported to the warehouse by one set of tribe (3 PL).Since warehouse operates in 2 shifts so when the trucks come from plant to warehouse that is unloaded by distinguishable 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 purpose 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 some specific plans may be put in place to reduce the damages. The pastime table shows the different causes and actions defend Causes Action Plan 1 * In-Transit remedy * Bad Road Conditions * Mishandling by the operators * Since in stage 1 the transportation is done by the 3PL so while selecting 3PL service provider company can bewilder some clauses in the agreement relate to minimum breakage acceptable * Operators can be nstructed to follow the best thoroughfare * Maintenance of carriers periodically after a specified time 2 * riffle in forklift * Over stacking * unlawful study * Mishandling by the operators * Establish SOP for the forklifts operation * Periodic maintenance of forklifts * Company shortly uses diesel run forklifts that can be replaced by battery operated forkliftswhich require less maintenance * set aside incentives to the operators for achieving a sure level of damage free work * Provide ergonomically fithandles to the containers * Pet bottle packets as shown below gets unwrapped sometimes that needs pr oper packaging * Above attractive of packaging can be either replaced by carton (but that would not be a cost effective solution) or same packaging can be improved 3 * Improper operation/jerk in forklift * Improper inspection * Mishandling * Try not to rotate the people involved in inspection so that their learning curve makes them more in force(p) in that particular task * Provide incentive to the employees * Encourage employees 4 * Overloading * Improper truck operation * neutralise overloading * Proper training to the truck operators * Hire experienced operators * Provide incentives Environmental Causes * Rat bunco game * Especially tetra packed drinks are attacked by Rats * Use Rodent boxes to kill the rats * nonchalant check the rodent boxes & clean it if needful 7. 1. 2 Major changes which can be brought in future to improve the boilers suit process * SOP for forklift operations * Proper maintenance of forklifts and Trucks * Use of battery operated 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 following Steps can be taken for the same 1. crotch Lift Inspection Check shroud 2. Training Check leaning/ unconstipated 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 mode 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 fill out group set. Hence use of p-chart should be used for continuous control. It will chec k 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. go by template for Formulating p-chart 9. ESTIMATED BENEFITS OF PROJECT The biggest benefit of the project is in terms of reducing the guess of product unavailability downstream. The probability of defects can be drastically decreased and bide 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 exemplar 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. Project benefits were estimated and it is found that this improvement can bring down the improvement in fill rate. 11. REFERENCES * www. dmaictools. com * www. sixsigmatutorial. com * www. sixsigma. in * Six Sigma Way ? Team battleground book by Peter S. Pande, Robert P. Neuman and Roland R. Cavanagh * Six Sigma for managers by Greg Brue