Production yield imrovement activities at Aldila composite products co. LTD Using lean six sigma approach

HO CHI MINH CITY OPEN UNIVERSITY UNIVERSITÉ LIBRE DE BRUXELLES SOLVAY BRUSSELS SCHOOL OF ECONOMICS & MANAGEMENT MBQPM4 DINH THE PHUC PRODUCTION YIELD IMPROVEMENT ACTIVITIES AT ALDILA COMPOSITE PRODUCTS CO., LTD USING LEAN SIX SIGMA APPROACH MASTER FINAL PROJECT MASTER IN BUSINESS QUALITY AND PERFORMANCE MANAGEMENT Tutor’s name: Dr Jacques Martin Ho Chi Minh City (2014) Master Thesis Project Tutor: Dr Jacques Martin Students name Dinh The Phuc Page 2 STATEMENT OF AUTHORSHIP I      P Y Ient Activities at Aldila C P C L  L S S A      Except for where the references are mentioned in the text of the project, this project does not contain any materials published elsewhere or extracted entirely or partly from a project by which I have qualified for or granted another degree or certificate. N               the project. Ho Chi Minh City, June 2014 DINH THE PHUC Master Thesis Project Tutor: Dr Jacques Martin Students name Dinh The Phuc Page 3 ACKNOWLEDGEMENT This project has been instructed and supervised by Professor Jacques Martin, to whom I extend my sincere gratitude for taking the time to guide me through the end of this project. The present work was carried out at Aldila Composite Products Co., Ltd in Binh Duong province, Vietnam which is part of Aldila Golf Corp. has headquarter in Poway California USA, with the help and support from all the great personnel working there. I would like to thank Mr. Dave Lopez (VP in US), Mr. Joe Bajado (Material Manager in US), Mr. Ed Newel (QA Manager in US) and Mr. Cao Duy Duong (General Manager) from Aldila Composite Products Co., Ltd, for advising me through this work and for all their support in making this project possible. I would like to thank my family for their support, for always believing in me and given me so many opportunities through life. Finally, thanks to my good friends, my colleges Mr. Tran Quoc Bao (Engineering Manager), Mr. Nguyen Thanh Tuan (Production Manager), Mr. Nguyen Xuan Thuc (Assistant Production Manager), for all the time we worked together and have good memories at Aldila Composite Products Co., Ltd DINH THE PHUC Master Thesis Project Tutor: Dr Jacques Martin Students name Dinh The Phuc Page 4 ABSTRACT Due to changes in customer demands, companies often need to improve their processes and approach them in different ways. Waste elimination is very important for every company in their quest to reduce costs and use resources efficiently and preserve the environment. Variation reduction helps keep processes steady and more accurate. Two powerful tools for process improvement are Lean and Six Sigma, when combined can bring many benefits to organizations that decide to implement them. The amount of continuous improvement tools that each methodology possesses brings the team a great variety of resources to attack and reduce variation in any process. Lean and Six Sigma methodologies have gain a lot of popularity in recent years. The improvements they bring to companies not only in an economical but as a way to develop professionals are impressive. These methodologies are changing mindsets worldwide and giving quality a new meaning. Lean Six Sigma certifications are a must for every professional looking to improve processes in their organization. Aldila Composite Products Co., Ltd in Binh Duong, Vietnam has a great challenge on trying to improve processes in their production facilities to keep with goals and demands from headquarter in Poway, USA. This project is involved with the use of Lean and Six Sigma tools to improve production yield by reducing the reject rate. The project is divided in three parts. Firstly, an introduction to Lean and Six Sigma is introduced and why they are so important for companies/enterprises nowadays. Second, explain the DMAIC methodology used for the realization of the project. Third, explain the implementations made to improve the process and reduce reject rate at Aldila Vietnam Master Thesis Project Tutor: Dr Jacques Martin Students name Dinh The Phuc Page 5 COMMENTS OF PROFESSOR                    Master Thesis Project Tutor: Dr Jacques Martin Students name Dinh The Phuc Page 6 CONTENTS ACKNOWLEDGEMENT 3 ABSTRACT 4 COMMENTS OF PROFESSOR 5 CONTENTS 6 LIST OF ABRIVIATIONS 8 LIST OF PICTURES IN REPORT 9 LIST OF TABLES IN REPORT 10 INTRODUCTION 11 ALDILA GENERAL INTRODUCTION 11 ALDILA GOLF SHAFT PRODUCTS 12 PROBLEM AREA 18 OBJECTIVES 18 PART 1: FRAME OF REFERENCE 19 CHAPTER 1: SIX SIGMA 19 CHAPTER 2: LEAN MANUFACTURING 22 CHAPTER 3: COMPARISON BETWEEN LEAN AND SIX SIGMA 27 CHAPTER 4: DMAIC METHODOLOGY 29 PART 2: RESEARCH PROCESS AND PRACTICAL STUDIES AT ALDILA 30 CHAPTER 1: GOLF SHAFT MANUFACTURING PROCESS 31 CHAPTER 2: THE GOLF SHAFT YIELD DEFINITION AND REJECT RATE CALCULATION 38 CHAPTER 3: METHOD OF DATA COLLECTION 40 CHAPTER 4: THE IMPROVEMENT PROJECTS 42 CHAPTER 5: DMAIC METHODOLOGY IMPLEMENTATION 43 A. DEFINE 43 1. PROJECT CHARTER 43 2. GMI AND SSD DEFECT DEFINITION 46 3. SIPOC 48 B. MEASURE AND ANALYIS 49 1. GMI AND SSD HISTORY DATA AND CHART 50 2. GMI CHECKLIST 51 3. PARETO ANALYSIS  GMI DEFECT 52 4. THE FISHBONE ANALYSIS  GMI 53 5. PARETO ANALYSIS  SSD DEFECT 54 6. THE FISHBONE ANALYSIS  SSD DEFECT 56 C. IMPROVE 57 1. IMPROVEMENT ACTIONS 57 2. RESULT AFTER IMPROVEMENT 59 Master Thesis Project Tutor: Dr Jacques Martin Students name Dinh The Phuc Page 7 D. CONTROL 61 PART 3: VISUAL FACTORY 64 CONCLUSION 65 REFERENCES 66 APPENDIX: 67 Master Thesis Project Tutor: Dr Jacques Martin Students name Dinh The Phuc Page 8 LIST OF ABRIVIATIONS AMTC: Aldila Materials. Technology Corp. CFT: Carbon Fiber Technology LLC MSV: Miramar Strategic Ventures, LLC. MRC: Mitsubishi Rayon Co., Ltd MLT: Micro Laminate Materials KPI: Key Performance Indicators TQM: Total Quality Management DPO: Defects per Opportunity DPOM: Defects per Million Opportunities JIT: Just-In-Time PDCA: Plan  Do Check  Act circle SMED: Single Minute Exchange of Die VSM: Value Stream Mapping TPM: Total Productive Maintenance CTQ: Critical to Quality Master Thesis Project Tutor: Dr Jacques Martin Students name Dinh The Phuc Page 9 LIST OF PICTURES IN REPORT Master Thesis Project Tutor: Dr Jacques Martin Students name Dinh The Phuc Page 10 LIST OF TABLES IN REPORT [...]... methodologies into a Lean Six Sigma approach They have noticed that if they get a 6% of improvement over time using Lean and another 6% using Six Sigma, when combined they can get up to a 12% improvement or higher than 12%, although there must be wary that there are no contradictions between the two approaches, i.e that they are integrated Figure 9: Integration of Lean and Six Sigma Page 28 Master... and very clear to everyone communication of information Table 1: Some Lean Tools CHAPTER 3: COMPARISON BETWEEN LEAN AND SIX SIGMA It is said that Lean and Six Sigma have lots of things in common Both of them focus on satisfying customers and use different tools to do so Six Sigma focuses on the variation of the processes and applies statistical tools to reduce them; Lean focuses on waste reduction by... description for Lean and Six Sigma and how their integration can benefit companies that decide to implement them Also a background of the DMAIC methodology used in the project and an explanation on the five steps that the methodology contains to develop Lean Six Sigma projects CHAPTER 1: SIX SIGMA Six Sigma is a highly efficient methodology that focuses on developing and delivering stable products and... comes to mind: Can Lean and Six Sigma be applied together at an organization? The answer is yes If by themselves Lean and Six Sigma are very efficient tools, together they can bring more benefits to the company and lean and repeatability in many basic processes Once stability has taken hold, much of the variation due to human processes goes away The data collected to support six sigma activities thereby... strategy that utilizes statistical tools and project management methodology to achieve profitability and improvements in quality The good company can maintain and improve at a four sigma level (Harry, 1998) Snee, (1999) describes Six Sigma A business improvement approach that seeks to find and eliminate causes of mistakes or defects in business processes by focusing on outputs that are of cr Six Sigma. .. the performance of a process; they indicate the yield of processes so objectives can be achieved At Aldila Composite Products measure productivity, efficiency and costs These are shop Shaft per man, Production Yield, shop supply usage cost and Scrap rate This project is focused on the production yield KPI (reduce the shaft reject rate) The production yield is defined as the number of shafts coming... For Aldila Composite Products Co., Ltd, this is very important when competing against different brands of golf shafts and against regional affiliates that try to move operations to their countries (in Laos, Cambodia) One way to control that resources and materials are being used effectively in companies is ormance Indicators) Key performance indicators measure the performance of a process; they indicate... Martin Lean techniques are the systematic identification and elimination of waste, implementation of the concepts of continuous flow and customer pull (CSSBB, 2011) Some of the benefits of lean implementation in companies are: lower production costs, system flexibility, higher quality, quicker product development There are many lean manufacturing tools that help reduce waste, some of these tools are: Lean. .. going into that process over a specified period of time The shaft reject rate is defined as all the shafts in the process line that do not meet quality requirements These rejected shafts are reworked or scrapped and there is a big loss in material This cost the company on material, work force and the committed delivery date with customer This project will be performed by using a Lean Six Sigma approach. .. perspective The statistical perspective cares for (as stated above) the failure rate or the quality rate As for the to improve business profitability, to improve the effectiveness and efficiency of all operations Either viewpoint of the Six Sigma approach should result in a very streamlined customeroriented manufacturing flow and organization, where all processes encompass minimum variation, correspond . BRUSSELS SCHOOL OF ECONOMICS & MANAGEMENT MBQPM4 DINH THE PHUC PRODUCTION YIELD IMPROVEMENT ACTIVITIES AT ALDILA COMPOSITE PRODUCTS CO. , LTD USING LEAN SIX SIGMA APPROACH . information about Aldila Composite Products Company and a general quality concept overview ALDILA GENERAL INTRODUCTION The Company was founded in San Diego, California in 1972. Aldila now conducts. to compete in globalized markets. For Aldila Composite Products Co. , Ltd, this is very important when competing against different brands of golf shafts and against regional affiliates that