PROJECT STORYBOARD: Lean Six Sigma Increases Daily Meat Production by 25%

Daily Meat ProductionProject Storyboard

Al-MAWARID Meat Company Kuwait

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1.543,4

1.774,41.798,1

1.864,6

NOV-16 DEC-16 JAN-17 FEB-17

Nov-16 to Feb-17 Baseline

Products [kg/d]

1.500,6

1.791,7 1.769,8

1.923,5


Nov-15 to Feb-16 Baseline

Products [kg/d]

Key Words(Specific Meat Processing)

• Production Manager

The PM is the head of the production department (19 persons incl. PM & QC)

• Working hours

The working hours are from 07:00 am to 03:00 pm from Sunday to Thursday. Breaks are from 09:00 to 09:15 am and 12:00 to 12:45 pm.

• Chiller

The chiller is a chilling area 0 – 5 degrees C in order to chill down fresh meat products (expiry date is only 5 days).

• Quick Freezer

The quick freezer is a cooling area -18 degrees C in order to quick freeze frozen meat products (expiry date is 9 months).

• Grinder

A meat grinder or meat mincer is a production appliance for fine chopping ('mincing') of, or mixing of raw meat.

• Mincer

A production equipment used for making smaller pieces of meat for further production steps.

• Soy Protein

Soy protein is an additive for frozen meat. The frozen meat expiry is 9 months.

Phase Planned Actual

Define: 18 Oct. - 07 Nov. 18 Oct. - 07 Nov.

Measure: 08 Nov. - 05 Dec. 08 Nov. - 19 Dec.

Analyze: 06 Dec. - 26 Dec. 20 Dec. - 08 Jan.

Improve: 27 Dec. - 23 Jan. 09 Jan. - 06 Feb.

Control: 24 Jan. - 06 Feb. 07 Feb. - 20 Feb.

Process Start:

Process End: Position Person

Team Lead Alexander 25%

In: Sponsor Waleed CEO 15%

Team Member Saeed GM 15%

Out: Team Member Kottob PM 25%

Team Member Mustafa QC 20%

Project Charter

The Management is complaining about that the daily production amount of

meat is not increasing. The average amount of daily production is 1,800

tons per day. The amount is the same since 3 years.

Improvement for the daily average production amount will result in higher

revenue.

Problem Statement

Goal Statement

Business Case & Benefits

Timeline

The production department is preparing the weekly order

in 6 days (Sunday to Thursday)

The sales department follows the request of the

customers. Purchasing additional equipment or

employees.

Project Name: Increasing of daily production amount

Scope In/Out

Sales department places an order

Storekeeper reports weekly cold store information

The goal is to increase the daily production amount of meat to an average of

2,25 tons/day in Q4 in 2016.

Team Members

Time Commitment

Key Take Away: The production of meat need to increase in order to be financial breakeven

Customer Comment

(What Are They Saying?)

Gathering More Understanding

(Why Are They Saying it?)

Customer Requirement

(What Do They Want?)

The storage area is too small Loosing revenue because of limited spaceImprovement of storage capacity and inventory

management

The equipment is out of order too many times The equipment isn't up to dateThe maintenance time should be max. 5% per year

(117 hrs/ano)

The customer sends products back Poor quality of packaging Improve packaging standard

The production isn't increasing The daily operation costs are higher than income 2,25 tons per day is necessary for break even

Voice Of the Customer Translation Matrix

Too much overtime Operation costs are too high Reduce the overtime to max. + 5% per week

Too many external products Loosing of production time Produce external products in spare time

Key Take Away: The scope of this project goes from the point of receiving the order to the point at which the processed meat is available

S I P O CSuppliers Inputs Process Outputs Customers

Weekly Order Sales

DepartmentCold Store Inventory Completed Meat order

Transport department

delivers the order

Meat processing Grinder/Mincer/Filling Meat stock Stock (in-house)

Packing/Transportation Load Trucks Finish Goods Local shops/markets

Keep cleaning time

in an acceptable range

Fresh meat production

first thing

Stores order in cold

store

Customer

Requirements

SIPOC

PM receives order

Prepares weekly plan

Make the order

Prep. Order for sales

Key Take Away: The QC manager was largely responsible for all data collection The data got collected in format hh:mm. The PM adjusted job duties to accommodate.

Therefore, a MSA is not necessary.

Measure Data Type Operational DefinitionStratification

FactorsSampling Notes Who and How

Data Collection Planning

Pick-Up Time

for Material

from Cold

Store

Continuous

Cycle Time in minutes from the moment a

process request material to the moment the

meat is delivered

by flicker

by oven

by saw

by filling machine

sample every other pick-

up for the equipment

QC notes all information

and keep a log during



Cleaning

Time of

Equipment

ContinuousCycle time in minutes for each cleaning

process of the equipmentall equipments

sample every work day

for one month



Running Time

of EquipmentContinuous

Cycle Time in minutes from the moment the

meat processing starts until handover to the

next step

all equipmentssample every other pick-

up for the equipment



Failure Mode

Time of

Equipment

ContinuousCycle time in minutes from the beginning until

the restart of the single equipmentall equipments

sample every work day

for one month

Key Take Away: Root cause analysis will focus on process and management

Fishbone Diagram

Why 1 Why 2 Why 3 Why 4 Why 5

Why? Because Why? Because Why? Because Why? Because Why? Because

Fluctuation in

daily

production

Production

plan isn't

available

Production

depends on

Stock

Store Keeper is

responsible for

stock

No

forecasts

available

SM

doesn’t not speak

with PM

Baseline

products

aren't

constant

PM

doesn’t plan

No space

for

products

in store

Wrong

daily

productio

n plan

Ma age e t Why’sWhy does no clear guidance & instructions

cause a fluctuation in daily production

amount?

• No clear daily plan for operators

• Production preparation needs more

time

• Material needs to get moved out of

cold storage area

• Preparation is only possible after

receiving the instruction

• Operator is highly depending from

Production Manager

Fishbone Diagram

Equipment

Lackof w orkflow process

Process are different based on product

Equioment is not up to date

Staff

Lackof Training

long vacation times

Sick times

Process

Timeline isn't understood in general

No daily prodction overview available

No standard process for daily tasks

There is not a monthy forecast available

Weekly order at the beginning of the w eek

Too many products

clear guidance &instruction of

There is not a daily production plan

Weekly production plan

Other Sales Orders Management

fluctuation in daily

production

Out of order, lack of maintenance schedule

Key Take Away: Hypothesis tests confirmed that the production process of baseline / additional produ ts are not sta le and that other pro esses didn’t hange.

Hypothesis Testing Plan

Possible X Root Cause Hypothesis Hypothesis Test Results

Amount kg The monthly production of baseline products is not stable One-Sample T TRUE

Time period The storekeeper needs more time to provide the order than is used to One-Sample Sign FALSE

Amount kg The monthly production of additonall products is not stable One-Sample T TRUE

Time period The equipment cleaning time is longer than it used to One-Sample Sign FALSE

Day of WeekThere is more variation in daily production orders off baseline products and

additional products on certain days of the weekLevene's FALSE

Time period Packaging time for fresh products takes longer than it used to One-Sample Test FALSE

Time period Packaging time for chilled products takes longer than it used to One-Sample Test FALSE

Hypothesis Testing Results

Key Take A ay: P is elo 0.05 for all tests. Therefore I’ e to reje t the H0 Null Hypothesis and pursue the alternative Hypothesis HA

One-Sample T Test of μ = vs ≠ Variable Baseline Extra

N 12 12

Mean 1773,8 476,9

SE Mean 270,9 157,7

95% CI 1601,6; 1945,9 376,7; 577,1

T 22,53 10,21

P 0,000 0,000

H0 the monthly production is equal for the

baseline products and additional

products.

HA there is a difference between the

monthly production – the monthly

production is not equal. 20

2

4

6

8

01

21

0 004 008 0021 0061 0002 004

1774 270,9 12

476,9 157,7 12

Mean StDev N

Fy

cn

eu

qer

B

elbairaV

artxE

enilesaH

lamroN

artxE ;enilesaB fo margotsi

Impact Effort Matrix

Key Take Away: The team planned to implement the two solutions in the easy / high impact quadrant

1. Organize the production plan for the whole

month / period

2. Set up in order the daily production in order to

optimize the equipment cleaning time

3. Buy new equipment, more efficient and easier to

handle

4. Rearrange the production area in order to

minimize the movement of products

5. Conduct tasks in parallel so operators can arrange

there work tasks

6. Focus & Increase the baseline products (best

seller)

7. Organize extra processing (external vendors)

during overtime

8. Preparing package boxes during the overtime

Project Objective:

Project Sponsor:

Project Stakeholder:

Hard Easy

Low Impact

High Impact

Impact Effort Matrix

Optimise the monthy production amount

General Manager

Production Manager

1

2

3

4

5

6

7

8

Key Take Away: Cross-Training mitigated the risk of wrong planning for the daily minced meat production

Risk Management Plan

Jan 12th, 2017 (Rev.):

Process

Step/Input

Potential

Failure Mode

Potential

Failure

Effects

Potential

Causes

Current

Controls

Action

RecommendedResp.

Actions

Taken

Daily fresh

minced meat

production

under-

production

(less than

450 kg/d)

don’t reach the daily

goal

8

not enough

raw material

in store

10

cold store

inventory

and stock

order

process

5 400

proper planning

of monthly

prodcution,

cross train of

SM & PM

GM 19. Jan 10 8 1 80

OC

CU

RR

EN

CE

(1

- 1

0)

DE

TE

CT

ION

(1

- 1

0)

RP

N

What is the

process step

and input under

investigation?

In w hat w ays

does the Key

Input go

w rong?

What is the

impact on the

Key Output

Variables

(Customer

Requirements)

?

What causes

the Key Input to

go w rong?

What controls

and

procedures

exist that

prevent the

cause or the

Failure Mode?

What are the

actions for

reducing the

occurrence of the

cause or

improving

detection?

What are the

completed

action taken

w ith the

recalculated

RPN?

SE

VE

RIT

Y (1

- 1

0)

OC

CU

RR

EN

CE

(1

- 1

0)

DE

TE

CT

ION

(1

- 1

0)

RP

N

SE

VE

RIT

Y (1

- 1

0)

FMEA Form

Process/Product Name:

Responsible: FMEA Date (Orig.):

Prepared By:Baseline Product Production

Production Manager

Team

Key Take Away: The PM is responsible for monthly production plan. The PM gets the forecast from the SM. The storekeeper is responsible for the stock of materials

(define min & max amount)

To Be Map

Operator

Swimlane Map

Storekeeper

Sales

Manager

Production

Manager

Requests

Products for

the Month

Plans Monthly

Production

Check Stock

inventory

Send Order to

Operator

Requests

Material from

Store

Produces

Daily Order

Responsible

for Stock AMT

Updates

Ready Stock

Key Take Away: Implemented solutions decreased variation of baseline products and achieved project goal of 1,800 kg/d

Before & After Time Data

1.500,6

1.791,71.769,8

1.923,5

1.400,0

1.500,0

1.600,0

1.700,0

1.800,0

1.900,0

2.000,0


Nov-15 to Feb-16 Baseline Products [kg/d]

1.543,4

1.774,41.798,1

1.864,6


Nov-16 to Feb-17 Baseline Products [kg/d]

Key Take Away: The monitoring plan factors the leading indicators of daily production of baseline products, cold store inventory and total daily production amount

Monitoring & Response Plan

MeasureInput, Process

or Output?

Trigger Measures

(Control Limits/Specs)

Method of

MeasurementChecking Frequency Who is Responsible

Production of Baseline Products Output Less than 15% Daily production Report Daily Production Manager

Cold Store Inventory Input 40% of stock available Daily Stock inventory Weekly GM

Daily Production Amount Process Less than 2,0 tons per day Daily production Report Weekly Production Manager

Monitoring Plan

Control Chart of the Project

Key Take Away: The team is continuing to work on the special causes of variation. The Lower Control Limit of 213,8 kg/d is the Response Plan trigger

121110987654321

500

400

300

200

Observation

Ind

ivid

ua

l Va

lue

_

X=359,6

UCL=505,4

LCL=213,8

121110987654321

200

150

100

50

0

Observation

Mo

vin

g R

an

ge

__

MR=54,8

UCL=179,1

LCL=0

1

1

I-MR Chart of Minced meat

The minced meat production is a top seller. The production has a volume of 16,11% of the total production.

Key Take away: The Pareto chart shows that 20% of the products are responsible for 80% of the daily production (C = chilled, F = frozen food).

Appendixes

Key Take Away: The daily average production amount is not equal for the year 2016. Improvement focused on the production management process.

One-Sample T-Test

300027002400210018001500

4

3

2

1

0

Daily Average [kg]

There have been complaints from management of Al-Mawarid Company. One hypothesis from the GM is that the

daily amount of production is equal each month of the year. Let us see if the data and test supports this hypothesis.

Let us look at the average production amount in kg/d.

Variable C1

N 12

Mean 2250,7

StDev 316,7

SE Mean 91,4

95%; CI 2049,4 ; 2451,9

T 24,61

P 0,000

Test of μ = 0,95 vs ≠ 0,95One-Sample T: C1

Stakeholder/

Stakeholder

Group

Impact Level Level of SupportReason for

Resistance or Support

Action(s) to Address

This Stakeholder

Group

Contact

Waleed

(Sponsor)Decision Authority Supportive He is aware of the problem

Wants to be in the loop for

the outcomesEmail

Saeed (GM) Impacts Neutral LSS is a new experienceKeep informed before daily

actionMeetings

Yahia (Finance

Manager)Affected Supportive

He is responsible for the

financesKeep informed Email

Mustafa

(Quality

Control)

Affected Resistant Job SafetyKeep informed before daily

actionMeetings

Kottob

(Production

Manager)

Affected Resistant Job Safety Briefings before action Meetings

Stakeholder Analysis (Advanced)

Key Take Away: The production manager has a key responsibility for a successful project. Therefore, the communication plan is very important (dead lock).

Key Take Away: The production manager has a key responsibility for a successful project (dead lock). The communication plan was instrumental in making sure everyone knew what was

happening with the project at all times.

Stakeholder/

Stakeholder

Group

Objectives

(Actions Desired)Message Content

Delivery

Method(s)/Venues

By When

(Frequency)

GMHelp select team members

& daily processes

This project will increase

the efficiency of the

production department

1-on-1 meetingSunday

Morning

PM

Inform of project findings,

create buy in and

ownership, participate in

roll out

Pilots results, training and

implementation planMorning briefing

Sunday

Morning

QC

Inform of project findings,

instill confidence in team

and process changes

They will learn some great

Lean Six Sigma Skills as a

result of joining the team

Join the GM

morning briefingWeekly

StorekeeperProvides an updated store

inventory list

He will have an active hand

and provide key input

Check with QC

ManagerWeekly

Communication Plan

EFFORT IMPACT

Results of Weighted Criteria Matrix

Project Title:

Leverage the Amount of Daily Meat Production

Notice where the project falls in the

Impact/Effort Matrix:

Low Effort and High Impact are

"Top Picks"

High Impact and High Effort are

projects to "Consider"

Low Effort and Low Impact

might be "Potential

Investments"

High Effort and Low Impact are

the "Least Likely" projects to

pursue

3,8 7,0

3,8

0,0

1,0

2,0

3,0

4,0

5,0

6,0

7,0

8,0

9,0

10,0

0,0 1,0 2,0 3,0 4,0 5,0 6,0 7,0 8,0 9,0 10,0

Imp

ac

t

Effort

Impact/Effort Matrix

Production Hall floor plan with operators

Key Take Away: The equipment set-up is with the process flow. Additionally, the space is limited for any adjustment or change of the set-up.

Key Take Away: The process is complicated. The sales manager is not interacting direct with the Production Manager. The weekly production plan segment seems to

be depended from the cold store inventory.

Storekeeper

Sales Manager

Production

Manager

Operator

Swimlane Map

Receives

prodcution

order

Prepares

prodcution

order

Send product

to Cold Store

Take product

into cold

store

Updates Sales

Manager

Prepares

Weekly Plan

Receives

Sales Order

Provides Sales

Order

Receives

Store

Inventory

Provides

Store

Inventory

Detailed Map

Work Space:

Process or Activity:

Process StepTime

Mins

Distance

Walked

Storekeeper receiving Order 5

Collecting items cold store 10 50

Operator picks up the order 5 25

1st step grinder 30

2nd step Laska 30 12

Collecting spices out of spice room 5 20

3rd step adding spices 5

4th step mincer 30 10

preparation packaging area 5

- balance

- packaging material

- man power

5th step packaging 75 20

6th step preparing for transport 30 10

MAWARID Production Area Alexander Paselk

Oct. 20th, 2016

Spaghetti Map

Workplace Layout

(add equipment and furniture)

Name:

Date:Minced Meat Production (Chilled)

Key Take Away: The production map shows that the equipment set-up is with the process flow and the walking distance is optimal between the process steps.

Project Specific Map

Key Take Away: The team will update the processes before adjusting the production. The GM and PM will

implement guidelines and protocols. Visual management will be available for the operators.

Implementation Plan

Action Item

(List steps required to implement solutions)

Responsible

(List person(s)

responsible for action

steps)

Due Date

(Indicate when

action items must be

completed)

Update cold store inventar list (add min. & max.) GM Jan 12

Coordinate monthly production plan with PM Sales Manager Jan 17

Design visual management for production area Quality Manager Jan 31

Train production manager in new planning process GM Jan 15

Monitor daily production process Quality Manager Jan 24

Increase production of baseline products GM, PM Feb 01

Minimize non value added production of products Production Manager Feb 01

Establish bi-weekly meetings in order to update the process GM, PM, SM, QC Jan 29

New Production Management Plan

Key Take Away: The improvements implemented for one baseline product can easily be transferred for all baseline products – time to get the production lean!

Final Statement – Innovation Transfer Opportunities

Process Innovation/Addition/Change/Removal

(Describe the implemented solution)

Process Benefits

(Describe the both measurable and intangible benefits

of the change)

Area/Department/Business Unit

(Indicate the process area that could

benefit from innovation transfer)

Optimize monthly production plan more leveraged production Production process

Monitor baseline production 80% volume of the daily production Production process

Monitor cold store stock levels No running out of supplies Production process

Innovation Transfer Opportunities

PROJECT STORYBOARD: Lean Six Sigma Increases Daily Meat Production by 25%

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