Habitat for Humanity

Group 2:Abhishek DeiveekanJian ChenSankalp DereXin DuGayatri Gaddi

Background

Habitat for Humanity (HfH) is an international, non-governmental, and non-profit organization, which was founded in 1976

Functions: To provide affordable housing to people

Diagnostic of HfH

HfH is facing criticism for a number of reasons such as: Unsafe work environment Slow delivery Lack of volunteers Untrained volunteers Lack of power to do management work Failure to meet customers requirements Slow and inefficient process Inefficient usage of resources Sub standard housing materials

Diagnostic of HfH

The net effect of these issues will create following problems: Short term: Several customer’s complaints will cause the organization to lose

valuable opportunities. Due to these inefficiencies the process of fundraising will/has

becomes tedious as the donors may have second thoughts about donating to HfH.

Long term: It will discount the function of HfH

HfH and Six Sigma

To help eliminate the problems and help regain its former and needed glory, that is to build affordable homes, we have used Six Sigma method

Process Flow of Six Sigma Method

Define: Evaluating Problem Areas

Based on Voice of Customers(VoC) analysis and Pareto principle we have shorted down the top three customers requirements: Quality work Fast delivery Affordable house

Define: Cost of Poor Quality(COPQ) Concerns

Internal Failure Cost： Untrained volunteer’s low performance Slow and Inefficient building process: downtime and extra money Inefficient use of resources: non-value added activities Sub standard material quality Conflicts with local affiliates

External Failure Cost: Volunteers got injured in the project need medical care Difficulty in getting capital investment from people and

government Fail to build some “affordable” homes for low income people Conflicts with local authority

Define: Cost of Poor Quality(COPQ) Concerns

Define: Selecting Problems Areas For Improvement

Based on all pre analysis we decided to work on: Increasing the quality of building Shorten the delivery time

Measure: Verify Need

Setting a standard for their building based on the review of architect and the feedback of house owners

The house quality are rated from unacceptable (score 0) to qualified (score 5) to excellent (score 10)

Most houses are around and below score 5

Measure: Process DocumentationStart

Request/Need

Background information(climate, building style

feasibility)

Qualification for project

Determining resources available locally and resources needed from

outside(food, materials, equipment, labor)

Building houses and managaing labor/resources

Training the new home owners to maintain houses

Collecting non-profit mortgage

from home owners

Establish managing commitee to

overlook on area project

End of project

Yes

No

Measure: Understanding Quality Prerequisites

Society Personnel

Finance Equipment

Quality

Attention from people

Society Level

ResponsibilityTraining

Level Education Level

Scope of Equipments

Materials

Number of Equipments

Stability of Equipments

Corruption prevention

FundingAllocating

Funds

Culture

Quality Fishbone Chart

Measure: Baseline Performance

Because the target of HfH is to build affordable house, the baseline of their project would not be very high.

An ideal project would be rated between qualified (score 5) and advanced (score 7)

If a score from 0 to 4 exists then it needs immediate attention to improve

Measure: Process Capability

28252219161310741

6.4

5.6

4.8

Indivi

dual

Value

_X=5.796

UCL=6.713

LCL=4.879

28252219161310741

1.0

0.5

0.0

Movin

g Ran

ge

__MR=0.345

UCL=1.127

LCL=0

3025201510

6.5

6.0

5.5

Observation

Value

s

6.96.66.36.05.75.45.1

LSL 5Target 6USL 7

Specifications

LSL Target USLOverallWithin

6.56.05.55.0

StDev 0.3057Cp 1.09Cpk 0.87PPM 4664.42

WithinStDev 0.2783Pp 1.20Ppk 0.95Cpm 0.96PPM 2132.44

OverallOverall

Within

Specs

Process Capability Sixpack Report for C1I Chart

Moving Range Chart

Last 25 Observations

Capability Histogram

Normal Prob PlotAD: 0.442, P: 0.270

Capability Plot

Process Capability

Measure: Other Data Collections

Measured house quality in three completely different geographical locations/projects to measure influence of material quality and labor training level(in terms of cost to train them)

Measured the influence of repeatability, reproductively, and part to part

Analyze: Quality Performance between 3 Projects

Null hypothesis: Means are equal Alternative hypothesis: Atleast one mean is different Test: ANOVA Result: Alternative hypothesis is true Meaning: Quality performance in different projects are

significantly different

Analyze: Finding Quality Gap B\W These Projects Test: Tukey Pairwise Comparisons Result: Quality gap between project 1 and project 2 is the biggest Meaning: House quality of project 1 is better Next course: Finding if correlation exist between training level

and house quality or material and house quality in project 1

Analyze: Finding If Correlation Exist

Test: Pearson correlation Result: Correlation exist between material and quality of house Next course: Finding the correlation

Analyze: Finding Correlation B\W Material Quality And House Quality Test: Regression Analysis Result: House Quality = -0.324 + (8.727 x Material Quality) Meaning: The quality of material is the driving factor of house

quality

Improve: Design Of Experiments

We did quality check based on vendor selection from local supplier and overseas supplier

Result: Higher quality local supplier is preferred Reason: Lower cost and Less delivery time with almost equal

materials quality

Improve: Optimizing Inventory In Supply Chain Tested inventory with materials cap at 9 and 15 Result: Inventory of 15 is better Reason: Total cost is lower as inventory of 15 decreases cost of

overflow

Improve: Other Measures In Need of Improvement

Proper capital management Give high priority to employ skilled workers Finding out sporadic problem areas & dynamic implementation

of solutions proposed Incentives for skilled employees Aggressively promoting the need for skilled volunteers Renting necessary quality equipment, locally if available, to

reduce cost of own equipment deterioration as well as using improved tech

Establishing a supervising committee

Improve: Measures To Improve Sustainability

Using green building techniques and materials that are comparable in price to traditional counterpart

Cutting energy waste while building and fitting energy star electrical devices

Improving design of houses to minimize deteriorating weather effects based on locations

Training quality engineers for sustainability Efficient use of raw materials

Control: Use Of Control Charts

In order to control the building quality, a quality inspection standard should be set for the incoming raw material

Because materials are always purchased by huge lot size in a short period, a sampling plan should be set

Used: Nomograph Result: Sample size (n)=65 and acceptance number (c)=7

Control: Use Of Control Charts

According to the relationship between material and quality:

House Quality = -0.324 + (8.727 x Material Quality)

We can calculate that if we want to get an average house quality scoring 6, with upper limit 7 and lower limit 5 the raw material quality should have a mean equal to 0.72

Control: Use Of Control Charts

37332925211713951

0.80

0.75

0.70

0.65

Sample

Sam

ple

Mea

n

__X=0.72

UCL=0.7950

LCL=0.6450

37332925211713951

0.12

0.09

0.06

0.03

0.00

Sample

Sam

ple

Rang

e

_R=0.0399

UCL=0.1303

LCL=0

Xbar-R Chart of C1, ..., C2

Control Chart After Improvement

Control: Use Of Control Charts

We can see that the mean and range of material quality are fairly stable by now.

Because the quality performance may shift over time, it’s critical to keep checking the situation when new material are purchased.

Once they have a sample fall out of the limit or go beyond warning limits, we should stop the process or check the situation respectively, to assess whether the supplier has deviated from its stable state.

Control: Assessing Final Process Capability

New Process CapabilityCp=1.43Cpk=1.33

Old Process CapabilityCp=1.09Cpk=0.87

Control: For Ongoing Projects

Mistake Proofing Supervisors to overlook that every house construction follows

the same plan Also, if there is a problem in the current plan and a solution is

found out, then making sure that it's implemented on every house aka dynamic implementation

Control Plan If any individual in a team needs to be replaced then selecting

from equally trained individual This way there is consistency in trained people and house

quality is not compromised

Control: For Ongoing Projects

Management Control Managing committee to overlook the project after its

completion Having proper hierarchy of authority among the managing

committee Supervisors to check the quality of houses (eg. like in 1mth,

6mths, 12mths basis) and report to the managing committee for any immediate action needed on their part

Control: For New Projects-Use Of 5S Sort As the quality of houses also depend on quality training of

volunteers, this stage consist of sorting out workers who have received equal training

Pre selecting teams with trained individuals based on their corresponding work

Set in order After sorting out the necessary resources we need to document it

for quick selection and preventing waste of time Documentation of workers according to training level and their

post Equipment documentation is also a part of this stage

Control: For New Projects-Use Of 5S Shine In this stage it is necessary to prevent machinery and equipment

deterioration as it will have immediate impact on houses quality and time needed to complete the project

Standardize Standardizing the best practices in the work area. Some research

is needed to understand which type of houses, materials, equipments etc. are suitable in the given geographical area

Maintain orderliness Everything in its right place during and after the completion of

project Making sure that workers comply with process standard

Control: For New Projects

Sustain To keep everything in working order Perform regular audits Training and Discipline whenever necessary

Conclusion

By successfully implementing the techniques suggested the quality of work and delivery time will improve which is the required target for our project

If the targets are attained, HfH can bury their current shortcomings and be known as THE international organization for bringing quality & affordable houses to low income families

Thank You

Questions?