Reducing Waste in Food Company by Lean Sigma Methodology

HASHEMITE UNIVERSITY - FACULTY OF ENGINEERING

INDUSTRIAL ENGINEERING DEPARTMENT

Reducing Waste In Food Company By Lean Sigma Methodology

A graduation project is submitted to the Industrial Engineering Department in partial fulfillment of the requirements for the degree of Bachelor of Science in Industrial Engineering

SUPERVISOR

Dr. Adnan Al-Bashir

Mo'ath Y. Thwapiah 734383 Hafez H. Morar 731340 Omar Abu- Ehmad 731380 Oday M. Thwapiah 731376

Zarqa - Jordan

Fall 2010

1 ABSTRACT

Lean Six Sigma is an approach focused on improving quality, reducing variation and eliminating waste in an organization. The concept of combining the principles and tools of Lean Enterprise and

Six Sigma has occurred in the literature over the last years. The majority of Lean Six Sigma. applications have been in private industry, focusing mostly on manufacturing applications. The literature has not provided many a framework for implementing Lean Six Sigma programs applied to food section. This research provides a framework roadmap for implementing Lean Six Sigma in food section.

2 TABLE OF CONTENTS

Page Title Page i Dedication ii Acknowledgments iii Abstract iv List of Figures v List of Tables vi

INTRODUCTION .1 6 1.1 Company Profile 6 Products 1.2 6 1.3 Problem Statement 7 Purpose 1.4 7 Importance 1.5 7 Project Organization 1.6 8

Literature Review .2 9 Introduction 2.1 9 Lean Manufacturing 2.2 9 Lean Sigma 2.3 20 Waste model for food sector 2.4 22 2.5 Methodology For Waste Analysis In The Convenience 25 Food Industry

Lean Six Sigma Approaches in the Literature 2.6 26

LIST OF TABLES

3 Page Table 2.1 Lean manufacturing’s 5S’s 12 Table 2.2 Defects per Unit Conversion 16

LIST OF FIGURES

4 Page Figure 2.1 Kaizen work site waste targets 11 Figure 2.2 Gaussian curve showing sigma level 15 Figure 2.3 The DMAIC project cycle 16 Figure 2.4 lean six sigma yield relationship matrix 20 Figure 2.5 lean six sigma integration into DMAIC 21 Figure 2.6 representation of the waste model through life cycle 22 Figure 2.7 The RRD diagram for bulk organic waste 23 Figure 2.8 The RRD diagramfor waste water 23 Figure 2.9. The RRD diagram for process waste 24 Figure 2.10 The RRD diagram for packaging waste. 24 Figure 2.11 The RRD diagram for overproduction waste. 25

Chapter 1 Introduction

5 1.1 Company Profile

Halawani Brothers started as a private family more than sixty years of making sweet and was then known as "confectioner" - maker of sweetness - it is the beginning, what distinguishes the products of this project is a simple high quality and taste, which emerged in the secret recipe which they are famous. The beauty is used to rotate the stones to grind grains for the manufacture of sesame paste, known today of meal and add sugar and spices, which made it sweet, and formed in a dish, east of delicious is the trust and reputation among consumers and is known today Ballaop molasses. In 1952 the project became domestic private company officially registered and began using mass manufacture and distribution of modern at the time, adding a shift to products in terms of popularity in all parts of the Kingdom is worth mentioning that the most important characteristic of products Halawani Brothers it 100% natural and does not deal with genetically modified foods in addition to high quality, taste and price competitive, and now it is one of the leading companies in the Jordan, it includes the company's three factories, a factory of pallets and chips and sweetness and molasses The plant contains chips, three production lines, the industrial and natural, corn chips, so manufacturing is divided into three separate lines for each other and also divided into different sections to maize production in The natural is a single line, and exports its products to over 4 country 700 employees, Company departments: Production and planning department, Sales and marketing department, Human resources department, Quality control department, Financial department, Safety department, Accounting department and Maintenance department .

1. 2 Products

The main aim of the company is maintain high quality of products, to have more competitive force in the markets and to satisfy the customer demand.

All products of company have high quality standards, the products are the manufactory produces a lot of products including many kinds of chips, including natural and industrial and corn. And also milling and oil and sweet El Serge. And also products pellets of chips.

1.3 Problem Statement

6 With developed industrial life in Jordan and increase the number of factories, especially factories foodstuffs, which led to a lot of competition between companies is not in the price of product only, but also, its quality and as we know the food industry, it's the most important industries and most dangerous because it is related to food of customer, prompting the Ministry of Health and the Secretariat of the capital work To develop regulations and instructions regulate and control the production process.

When we visited the factory, we have noticed a number of problems and significant one is waste in a different types : 1- Unnecessary Motion 2- Unnecessary Material Handling 3- Waiting time 4- Rework/Scrap 5- Over Processing 6- Over Production 7- Inventory Waste

This waste leads to a decrease in product quality and reputation of the factory, so it will be reflected also on the percentage of profit made by the factory and do not forget also began working. This led us to work at reducing this problem through the use of lean Sigma methodology.

1.4 Purpose

This research will study the existing process for Halawani company , and will end up in recommendation that how process can be improved and standardized In relation to improving the process and reducing the warranty dollars or customer complains .

In this project Analysis the DMAIC methodology will be the major tool to assess various factors The practical's part of the research will deal with quality shortages in the production process. When studying the possibility of lean six sigma implantation the focus will be on how , and in which form , a lean six sigma venture can exist within current organization and how a general lean six sigma analysis can be conducted .

1.5 Importance

Applying Lean sigma principles to the food processing industry provides many benefits:

 Your organization becomes more flexible and able to meet changing customer demands  Less downtime to changeover equipment  Improvement of food quality  Less labor  Less floor space required  More product capabilities  Increased production levels

1.6 Project Organization

7 This report consists of 5 chapters , which are :

Chapter 1 Introduction : this contains profile for company and products which company is produced and problem statement and also the objectives of the project and it importance.

Chapter 2 describes the literature reviewed in the areas of lean manufacturing, six sigma and lean six sigma. Basic underlying concepts of these approaches are explained in this Chapter, and also Some examples of manufacturing companies implementing combined lean and six sigma effort is discussed .

Chapter 3 covers the methodology proposed to combine lean manufacturing and six sigma approaches to lean sigma approach. The basis of the model is explained in the chapter. This chapter explains the method used to combine the two approaches.

Chapter 4 Analysis and Results for Define , Measure, Analyze Phase that explained in chapter3.

Chapter 5 Covers Conclusions and Recommendations on the integrated lean sigma model in food company .

Chapter 2 Literature Review

8 2.1 Introduction

This chapter covers the review of academic and professional literature on various aspects of lean Six Sigma . Electronic searches were the primary means used in gathering information for the literature review. The University of Hashemite Online sources included ProQuest ®, Science Direct Database®, Springer Link ®, E-library, Yahoo, Google®, Google Scholar® and ProQuest ® Digital Dissertations . Searches included key words and phrases that addressed topics relevant to the research study such as Lean Production , Lean Six Sigma, Six Sigma, Total Quality Management It starts with background of Six Sigma, explaining the evolution of Six Sigma. This is followed by definitions of Six Sigma and the reasons behind its success and popularity . Some case studies to highlight its importance are also discussed in this literature review. While explaining the concept of Lean, case studies of successful Lean implementation are also elucidated. It will also brief about Lean manufacturing’s integration with Six-Sigma and how it has helped in process improvement.

2.2 Lean Manufacturing

Presentation of the definition of lean, its principles, and some of the techniques implemented in this process improvement method intends to introduce the reader to one of the two modern continuous improvement methodologies used in manufacturing. Even though Lean Manufacturing has a broad category of tools for improvement such as Quality Function Deployment (QFD), Total Productive Maintenance (TPM) and Kanbans or signboards among others.

2.2.1.1 Definition of Lean

Lean manufacturing allows all team members attain the setting of standards at continuous improvement. All too often, however, lean manufacturing is represented merely as a series of tools and kaizen methods. In reality, it is a consistent manufacturing methodology affecting the entire organization in every aspect.

2.2.1.2 Historical Overview Even though Womack, Jones & Roos [1], initially described the term “lean” in their book “The Machine That Changed the World” during the 90’s, lean manufacturing philosophy already existed under the concept of Toyota Production System (TPS) or Just in Time (JIT) inspired in Ford’s manufacturing strategies. TPS originator, Taiichi Ohno (1912-1990) identified the first seven types of waste, and in collaboration with Dr. Shigeo Shingo (1909-1990) concluded that the challenge consisted in the creation of continuous flow in low volume production. By overcoming this obstacle, they learned that quick changeovers in tools and machine “right-sizing” minimized setup reduction times decreasing and/or vanishing waiting times, a common issue in mass production system. Two major accomplishments by Dr. Shingo are Poka Yoke (mistakeproofing) devices and single-minute exchange of dies (SMED). With the Quality Circle movement, Kaoru Ishikawa, W. Edwards Demming, and Joseph Juran contributed to the quality movement culminating in team development and cellular manufacturing.

2.2.1.3 Muda

9 Muda in Japanese means waste and is defined as all the activities that do not add value to a product. In a manufacturing environment, two classifications of waste exist and are identified as (Womack & Jones, 2003)[ 2 ] :

Type I: The type of muda that involves steps that do not create value but that are also unavoidable.

Type II: The muda that involves steps that do not create value but can be avoided.

Ohno’s seven targeted wastes are [2]:

1- Unnecessary Motion : Is every motion of the operator that does not add value to the part. The course of action consists on presenting to the operators all parts, tools, and fixtures so they do not have to reach. If walking is necessary, it should be combined it with a value-adding operation.

2- Unnecessary Material Handling : Any movement of material or information not required to meet customer expectations. The course of action consist in eliminate provisional storage locations that cause material to be handled twice (inventory). All machines and equipment should be placed as close together as possible to eliminate unnecessary material movement.

3- Waiting time : Means the operator is waiting for work. The course of action consists on imitating all operators waiting time. Implement setup reduction or redistribute work in the cell if necessary.

4- Rework/Scrap : Means repair or replacement of defective parts that do not meet customer expectations. The course of action consists in combining standardized work and error proofing to eliminate defects.

5- Over Processing : Means performing any operation on a part that the customer is not willing to pay for. In other words, the process does not add value to the part.

6- Over Production : Means producing at a rate greater than customer requirements. The course of action consists on implementing setup reduction, using kanbans (or signboards) to link operations and control work in process inventories, produce only to the signals received, and adjust the number of kanbans as conditions change.

7 - Inventory Waste: Means removing excess material, or finished goods throughout the manufacturing process.

10 Figure 2.1 Kaizen work site waste targets (Womack & Jones, 2003)[2]

Waste is identified in order to eliminate the non-value-added time activities that reduce performance along a process. For example, in the case of an operator in a manufacturing plant -as shown in Figure 2.1 - non-value-added time represents in this case 50 percent of the total operator’s time.

2.2.1.4 Lean Principles

In addition to the classification of waste, lean thinking summarizes into five principles that are vital in maintaining a steady course during lean implementation. The five principles as defined by Womack and Jones (2003)[2] are:

1- Value : Can only be defined by the ultimate customer and is perceived as any operation or process the customer is willing to pay for. It should meet the customer needs at a specific price and time. The producer of the good or service creates value. The most important task in specifying value is that once the product is defined, a target cost needs to be determined based on the amount of resources and effort required to make a product of given specification and capabilities if all the currently visible muda were removed from the process.

2- Value Stream : Consist of all specific actions required to bring a specific product (good or service) through the three critical management tasks of any business: (1) Problem solving task, (2) Information management task, and (3) Physical transformation . 3- Flow : In the flow process once the non-value activities along the process are eliminated, the value-adding steps should allow the process to flow. One of the major obstacles in implementing lean flow thinking is that it is counterintuitive: it opposes the “usual” way of doing things. Two concepts are very important in this principle: Kaikaku or radical improvement, and Kaizen or continuous improvement.

4- Pull : The pull principle is based in the idea that customers pull the product therefore each step in value stream works through pull.

5- Perfection : The last principle is achieved naturally once lean has been implemented, and muda has been eliminated.

11 2.2.1.5 The 5S’s

The 5S’s are the keys to workplace organization, maintenance, and visual management. This concept produces an organized workplace, resulting in: 1- An increase in quality . 2- An increase in productivity . 3- A cleaner workplace which creates a safer workplace. 4- A reduction in required floor space . 5- Earlier identification of abnormal business situations .

The concept of 5S’s can be applied everywhere because of its simplicity providing quantitative results that often are associated to cost reduction. 5S’s were created in Japan based on their organization and maintenance system that contained five words that imply the following actions (Table 2.1): Table 2.1 Lean manufacturing’s 5S’s

1- Sort: Remove from the workplace any item not required for current production or the current day’s assignment. Maintain only what is needed today. Add anything that is needed but missing.

2- Straighten: Arrange items so they are easy to use. Mark and label these items so they are easy to find and clear up. Use a dependable labeling system. Designate a place for everything. Store everything close to the work site.

3- Sweep: Sweep the floors, wipe off equipment, paint if necessary, and in general, make sure everything in the plant and offices stays clean. Inspect while cleaning to prevent breakdowns.

4- Schedule: Standardize and maintain the use of sort, straighten, and sweep.

5- Sustain: Practice and repeat these procedures until they become a way of life throughout the entire business.

12 2.2.1.6 Value Stream Mapping

Value Stream Mapping is an effective tool that allows the total observation from the process input to the output with the objective of depicting the flow of material and information across and through all of the actual process steps (value stream) identifying those areas where there is waste and/or an opportunity for improvement. When developing a detailed value stream map it is important to go to the source, or Gemba, to see the work being done (Bell, 2006)[3] . It is fundamental to record as much information as possible in each of the processes. The value stream maps can display the following data:

• Cycle times • Uptime • Top three defect causes • Rework Percentage • Time for material to travel between operations • Distance between operations • Average days supply in inventory between operations

2.2.1.7 Poka Yoke

Poka Yoke or error proofing devices ensure the prevention of mistakes. Error proofing requires a full understanding of the manufacturing process and the problem lined to it. Contrary to the common belief, all processes can be developed to eliminate any given probability of error. An example is seen in the Japanese manufacturing companies where it has become a standard in their quality improvement strategy.

13 2.2.1 Six Sigma’s DMAIC

This portion of the chapter solely discusses DMAIC methodology. However, a brief presentation of Six Sigma intends to introduce several concepts that are crucial in the implementation of DMAIC, but excludes other approaches that Six Sigma encircles such as Design for Six Sigma (DFSS), among others.

2.2.2.1 Definition of Six Sigma

Six Sigma can be seen as a business improvement concept, as a problem-solving methodology (Brue, 2006)[4] , and as a philosophy that reduces costs, reduces defects, and improves the quality of products and services by greatly reducing waste in all the processes involved in the creation and delivery of products and/or services. It is a robust infrastructure involving personnel from different backgrounds in order to target quality and process improvement projects to drive a company’s continual improvement efforts. More specifically, Six Sigma is a problem technology that uses data, measurements, and statistics to identify the vital few factors that will dramatically improve customer satisfaction, employee satisfaction, and financial results (Akpolat, 2004)[5].

Six Sigma can often be seen as a business philosophy and initiative that enables world-class quality and continuous improvement to attain the maximum level of customer satisfaction. “Six Sigma is a quality improvement process starting with the voice of the customer and using data and statistics to solve customer problems” says a UR generalist at DuPont headquarters in Wilmington, Delaware (Heuring, 2004)[6] . It has been proven to be successful in reducing costs at the same time it significantly increases the margin of profits, improving cycle times, eliminating defects, and raising customer satisfaction.

2.2.2.2 Historical Overview

The Six Sigma methodology is a result of the evolutionary process of quality innovations over the past five decades. In the history of quality, there were various milestones, which sculpted the modern view of quality. The first quality innovation was the use of statistics in manufacturing processes, and then in the 1930’s control charts were introduced. However, quality became an important strategic element during World War II when the US military implemented military standards as a means of assuring the quality of its critical machinery and weapons systems. After the Second World War Japan adopted many of the American statistical quality control techniques and blended them with Japanese thought, culture and tradition to create a new quality concept known as Total Quality Control (TQC).

In the 60’s and 70’s, the TQC methodology proved to be an effective way of producing high quality and reliable products, which helped Japanese companies gain impressive market share in several industries, including electronics, automotive, and shipbuilding. During the 80’s Western companies responded to the Japanese challenge with two simultaneous developments: the ISO 9000 quality assurance system model predominantly favored by the European Union and the adoption of the Japanese quality model under the name Total Quality Management. Both, ISO 9000 Standards and

14 TQM improved product and service quality in many organizations. However, they were insufficient in improving processes further and “achieving substantial bottom-line results” (Akpolat, 2004, p. 6) [5] , The elementary Six Sigma methodology was developed, tested, and proven at Motorola in the early 1980’s. After it was proven at Motorola, other companies began to adopt this methodology. First, it was Allied Signal. General Electric was next to adopting Six Sigma, with extraordinary success. In the past few years, Six Sigma not only has been applied internationally, but also has been applied to almost every business function including research and development, customer service, accounts payable, human resources, and IT services.

2.2.2.3 Measuring Six Sigma

The Greek letter sigma (σ) is commonly used for expressing the standard deviation of a normal distribution, which is represented by a bell-shaped curve or Gaussian curve. If the numerical values for sigma increases (see Figure 2.2) the Gaussian curve becomes flatter, meaning that observations are getting further away from the center of the distribution. Briefly, a higher numerical value for sigma means a higher spread of the data (curve). As spread is typically used as a measure of variation within a process, the main idea behind process improvement is for it to reduce the variation and therefore the spread of data. The primary objective is to minimize process variation to an optimum (economical practical) level. The identification of a sigma level required for a process depends on various factors including customer and market pressures, resources availability and other strategic decisions.

2.2.2.4 Six Sigma’s Components

The basic components of Six Sigma are processes, defects, and variation. A process is any set of repetitive steps-in manufacturing, services or transactional environment to achieve some results. A defect is a measurable characteristic of the process or its output that is not within acceptable customer limits, or, is not conforming to specifications. The sigma level of a process is calculated in terms of the number of defects in ratio to the number of opportunities for defects. Variation is any quantifiable difference between a specified measurement or standard and the deviation from such measurements or standard in the output of a process. Six Sigma is achieved when processes deliver only 3.4 defects per million opportunities (DPMO) (Brue, 2006)[4].

Figure 2.2 Gaussian curve showing sigma level

15 Table 2.2 Defects per Unit Conversion

2.2.2.7 Six Sigma Methodology

The effectiveness of Six Sigma depends largely on its statistical techniques of defining, ensuring, analyzing, improving and controlling the critical processes. These five phases constitute the DMAIC approach. Quite often, the Six-Sigma approach is also referred to as the DMAIC approach (Tong, Tsung & Yen, 2004). For this research, it will be solely called the DMAIC approach.

Figure 2.3 The DMAIC project cycle

16 2.2.2.7.1 Define Phase

The define phase is perhaps the most critical phase within a Six Sigma project. Many aspects need to be analyzed including the VOC, current state of the process, resource availability and the business benefits. During the define phase the use of a cause-and-effect diagram is very useful to determine the critical to quality (CTQ) issues (or improvement areas) . Another important requirement for DMAIC is the project charter since it identifies goals and boundaries for the project. The goal of the project charter is to communicate to all stakeholders the changes in the process -including their benefits- in order to avoid confusion. In order to understand the process, the Suppliers-Inputs- Process-Outputs-Customers + Requirements (SIPOC) process map is used. The SIPOC is a high- level process map displaying between 4 to 7 steps along the process. This approach allows team members to view the process in the same light .

2.2.2.7.2 Measure Phase

The measure phase contains the following activities:

1 - Data collection 2 - The charting of data 3 - Measurement system Analysis

In data collection, the team determines where to collect the information based on the type of measures they select. The next process, charting of data, consist of characterizing the process by plotting or charting the collected data. Pareto diagrams and histograms are examples of the most commonly used charts. A Pareto diagram is a bar graph used to arrange information in such a way that determines what characteristic is the major contributor in a process. The diagram is constructed by ranking the data in frequency of occurrence and plotting the bars in descending order. Other uses include:

• Allow to analyze a problem from a new perspective • Focus attention of problems in order of priority • Compare data changes during different periods • Provide a basis for the construction of a cumulative line

Histograms or frequency plots are often used to study the frequency (occurrence) characteristics of a particular data set. Frequency plots show the distribution of a data set, thus enabling us to study and compare the characteristics of various distributions.

The third activity or measurement system analysis is the validation of the collected information. A number of common problems can occur when collecting data from a process or system. Nowadays most service industries (transactional, and IT, among others) count on computerized systems (hardware and software) that allow to measure information accurately. One of the typical means of collecting service-related data is surveying the recipients of those processes. The end user would be the recipient of a service in many cases.

17 However, there are also a vast number of processes in every company, which do not deliver services to end users (Akpolat, 2004). In the validation of measurement system, the quality of the measurements can be improved no matter whether the data is numerical or judgmental. Once validation of measurement takes place, the steps required in the Measure phase are outlined as (Brue, 2006):

1 - Selection of product or process CTQ characteristics; for example, CTQ Y’s. 2 - Definition of performance standards for Y’s 3 - Identification of X’s, 4 - Validation of the measurement system for Y’s and X’s. 5 - Collection of new data 6 - Establish process capability (sigma level) from creating Y. 7 - Conduct an evaluation of the project to executive leaders (phase-gate review).

2.2.2.7.3 Analyze Phase

In the analyze phase, the team identifies the root cause(s) or source(s) of problem or the critical factors which will enable them to achieve a target for improvement.

As previously mentioned, Six Sigma is a robust quality and process improvement concept that requires sound process analysis (Akpolat, 2004). The typical analysis tools for a process are:

• Root cause analysis • Statistical analysis (mean, variance, correlation, and regression analysis ) • The identification of problem solutions or actions for improvement

The basic stages that encircle the analyze phase are:

1- Localize the problem 2 - State the relationship that one is trying to establish 3 - Establish the hypothesis or the questions describing the problem 4 - Decide on appropriate techniques to prove the established hypothesis 5 - Test the hypothesis using the data collected in the measure phase 6 - Analyze the results and reach conclusions 7 - Validate the hypothesis 8 - Conduct a second phase review.

18 2.2.2.7.4 Improve Phase

In the improve phase the team is ready to test and implement solutions to improve the process. The key in this stage of Six Sigma consists in creating the relationship between the X’s and Y’s that one tries to improve. The Six Sigma team should :

1 - understand the possible root causes of problems or defects 2 - be capable to take action in order to prevent or eliminate these causes 3 - be able to identify the changes that the product, service, and/or process need to undergo in order to achieve improvement goals, as well as their effectiveness 4 - define the following steps toward achieving improvement targets 5 - identify cost implications on improvement plans 6 - determine other support actions or activities to accelerate progress.

2.2.2.7.5 Control Phase

In the final stage of DMAIC, one needs to ensure that the new process changes are stable, standardize the new process and share knowledge. Once improvement has been achieved, the control phase enters to play an important role in maintaining the process in control. In fact, it is suggested to develop a Process Control Plan, but moreover implement it and use it (Rybarczyk, 2005). A Process Control Plan always lists:

1- Which quality characteristics to control 2- Which tolerances to maintain 3- The frequency of inspection 4- Which sample sizes to take 5- Which instruments and analysis methods to use 6- Instructions on what to do if non-conformances are detected.

Another recommendation to maintain control involves monitoring and publicizing the key process metrics to promote continuous improvement and to guard against regression, a typical tendency among humans. Note that it is important to perform again measurement system and analysis as described in the measure phase. The main methods used in the Control phase are statistical process Control (SPC) and mistake proofing (Poka Yoke). These methods complete the cycle of finding the controls for the solution and, more importantly, maintaining the control of the solution (Brue, 2006). Control charts are also good tools to control the process once upper and lower control limits have been determined. Control charts provide information for (1) Quality Improvement, (2) To determine the process capability, (3) For decisions about product specifications, (4) For current decisions concerning the production process, (5) For current decisions about recently produced items.

19 The Certified Six Sigma Black Belt Primer (2001) recommends the implementation of Lean Manufacturing tools such as the 5S, and kaizen events, among others.

2.3 Lean Sigma

Why do we need lean six sigma ?

This below chart illustrates more steps in the process bring down the overall yield at various sigma level. Note: This chart is modified from a study done by Motorola Six Sigma Research Institute.

Figure 2.4 : lean six sigma yield relationship matrix

- Lean eliminates non-value added steps or waste from the process.

- Six Sigma improve quality of value add steps by reducing the variability in the process.

20 Lean six sigma DMAIC Integration Model

Figure 2.5 lean six sigma integration into DMAIC

Lean manufacturing and six sigma are powerful philosophies backed by several tools for improving quality, productivity and market competitiveness for any corporation in a olistic manner. An integrated approach to process improvement using lean manufacturing and six sigma principles is required since both lean manufacturing and six sigma are more cultural change meant to be the way a company does business rather than a onetime tool to be used for quick improvement. Without a model to allow merging of the tools, companies will falter in search of a new quick fix [7].

Lean six sigma is a methodology that maximizes shareholder value by achieving the fastest rate of improvement in customer satisfaction, cost, quality, process speed and invested capital. Lean helps reduce waste, six sigma helps reduce variation, however either does not reduce the other. Lean six sigma can be used to eliminate waste and attain statistical control by reducing variation [8].

Lean six sigma combines the lean and six sigma approaches to focus on improving quality, reducing variation, and eliminating waste. Lean six sigma, a combination of lean and six sigma principles began in the late 1990’s and is emerging as a powerful principle. [9]

Lean and six sigma are complementary approaches. First implement lean thinking to identify and eliminate waste through the use of kaizen events, then implement six sigma to reduce variation and improve quality. Within this approach, lean kaizen and other lean tools are typically applied on less complex problems, while six sigma and statistical tools are applied on more complex problems.

Use the six sigma DMAIC improvement in a more integrated approach with Lean thinking to focus on cycle time reduction and lean tools and projects. The DMAIC improvement process is used to implement lean projects, such as pull scheduling, such as pull scheduling, set up reduction or cellular manufacturing.

21 2.4 Waste model for food sector

The waste model is developed to visualize the waste generated by convenience food manufacturers and to serve as the starting point for realization of a framework for waste minimization.

The model has been created based on information collected obtained through a comprehensive programmed of industrial visits and interviews (Darlington, 2006). IDEF0 representations have been utilized to generate the waste model as they are easy to comprehend And their hierarchical approach enables systems and processes to be modeled in many levels of detail (Dorador and Young, 2000). The developed model focuses on the physical flow through the various stages of food manufacture and supply, as depicted in Fig. 1, with inputs (raw materials) and outputs (wastes) for each stage being identified separately. These classifications of waste are described in further detail below.

Figure 2.6 representation of the waste model through life cycle.

2.4.1 Bulk wastes Bulk wastes are associated with the preparation of ingredients and may include inedible parts of the ingredient, such as stems, leaves, bones, excess animal fat etc., along with contaminated Materials or ingredients, such as outer layers of vegetables that are spoiled and even soil or debris on the ingredient that is removed by washing or mechanical means. The costs of managing These wastes are low, the mechanisms by which they are collected being their primary expense. Provided they are disposed of responsibly, they present little environmental hazard

Figure 2.7 The RRD diagram for bulk organic waste

22 2.4.2 Waste water

Water is used in large quantities in food processing, predominantly in the preparation, cleaning and cooking stages of the product life cycle. The waste water as described in this context is the water reclaimed at the end of the process either as a carrier for dirt and contamination or as a by-product from the cooking or processing operations. In some cases it may be possible to recycle the water after filtration, for example in Sousvide manufacturing where the product is not in contact with the water throughout processing , However, in most applications the bulkiest debris are filtered out from the waste water and the remaining contaminated water is disposed of to the drain or groundwater.

Figure 2.8 The RRD diagramfor waste water.

2.4.3 Processing

Wastes Processing wastes as considered here may be due to a number of different sources, and may be further described as being due to poor housekeeping procedures, inherent process losses or poor conformity. Spillages, damages and contamination of product may be caused by operator neglect, poor handling procedures, forming equipment making improper seals on packs, etc. By-product wastes are materials that are created by the manufacturing process, such as juices or animal fats, which are removed and disposed to give the desired product quality or consistency. Finally, waste due to poor conformity may be created at any time for any ingredient or product failing to adequately conform to specifications, quality, appearance, flavor, aroma etc.

Figure 2.9 The RRD diagram for process waste.

23 2.4.4 Packaging

Wastes Packaging is widespread in the food industry to prevent contamination or spoilage of foods that are often packaged to protect them from their immediate environment. Packaging can vary from large paper-based sacks for bulk ingredients, to various plastic bags, sheets and pouches depending on the product and application. The material properties and specific nature of the packaging are typically engineered for each application, though unfortunately they are all often disposed together in a manner similar to commercial waste disposal.

Figure 2.10 The RRD diagram for packaging waste.

2.4.5 Overproduction wastes (OPW) Overproduction wastes constitute significant cost to the company as materials and resources in manufacturing are wasted given that the finished (prepared) product no-longer has an end customer. OPW may be used to describe batches of ingredients that have been prepared before order confirmation and cannot be re-directed before expiry. In such cases the ingredients will typically be scrapped to commercial waste and send to landfill as many own-label manufacturers cannot re-direct the product to different customers in keeping with their contractual agreements with the retailers. The authors contend that the generation of OPW is the most unsustainable practice in the food industry as significant resources such water, energy and raw material are wasted and therefore a structured approach to reduce such waste needs to be investigated.

Figure 2.11 he RRD diagram for overproduction waste.

24 2.5 Methodology For Waste Analysis In The Convenience Food Industry

In most food manufacturing applications, the source and amount of waste generated at various stage of production are not closely monitored. Furthermore, many manufacturers do not have any record of the cost of managing and treating their waste.

Such treatment of waste can be very costly to the business and may require significant investment in operating technologies, processes and equipment. Hence, there is a requirement to priorities the range of the waste types that a particular manufacturer needs to consider at any time. In addition, the minimization of waste in the food sector requires a structured approach to identify the source of waste, monitor its generation and develop bespoke solutions for their elimination and minimization.

Hence, this research has investigated a waste analysis methodology tailored to the specific requirements of food manufacturing which consists of :

(1) Waste inventory analysis to highlight and monitor the sources of waste throughout the production processes .

(2) Cost and environmental impact analysis to perform a cost analysis and to priorities the importance of cost management .

(3) Reduce–recycle–disposal analysis to highlight a detailed step-by-step solution for reducing, reusing and recycling and safe disposal of the waste.

25 2.6 Lean Six Sigma Approaches in the Literature examples of manufacturing companies implementing combined lean and six sigma effort is listed below :

- BAE systems controls in 1997 – Combined lean manufacturing principles with six sigma quality tools. Their lean sigma strategy was designed to “increase velocity, eliminate waste, minimize process variation and secure its future in the evolving aerospace market”. BAE Systems Controls implemented the following Lean initiatives: 1) Kaizen events, 2) takt-time-driven one-piece-flow product cells, 3) Kanban pull system and point-of-use storage bins on the plant floor, 4) Lean production cells, 5) mistake proofing, and 6) use of a multi-skilled workforce. As part of the Six Sigma program, they implemented statistical methods and team leadership with the use of Black Belts. The primary focus of BAE’s Six Sigma program was to reduce variation within their processes. Through lean sigma implementation they improved productivity by 97% and customer lead time by 97%. Value added productivity increased by 112% in five years, work in progress was reduced by 70%, product reliability improved by 300% and there were zero lost workdays in 1999 [10]. (Sheridan, 2000).

- Maytag Corporation in 1999 – Implemented lean sigma to a new production line reducing the floor space to one third’s used by other Maytag’s product lines. They also cut production costs by 55% and helped they achieve savings worth millions of dollars [11]. (Dubai Quality Group website, 2003).

- TBM Consulting Group implemented their LeanSigma SM methodology at Pease Industries. The basic approach included first implementing Lean principles. The consultants established one-piece flow, eliminated waste and redeployed operators no longer needed on the line. Once the hidden factory or waste was exposed, they implemented Six Sigma principles to reduce variation and improve quality. The company performed a LeanSigma Event as follows: 1) a one day Measure phase applying a quality map, cause and effect analysis, Pareto analysis and a Chi Square analysis on defects, 2) A two day Analyze and Improve phase using Comparative Analysis, quality tools and hypothesis testing, Jidoka-Failure Mode and Effect Analysis (FMEA), Poka-Yoke (mistake proofing) and Realistic Tolerancing, 3) A 30-day Control follow-up phase. They found that they were able to complete projects faster, and generate quality with less capital. They also identified the root cause of a problem instead of implementing a $30,000 solution to a perceived problem. LeanSigma has saved Pease Industries over a million dollars a year in scrap and manpower reductions. [12](Smith, and Adams, 2001)

- Goyal presents how Lean Six Sigma was implemented in a company that converted paper documents to electronic copies. (Goyal, 2002)[13] The company first improved the consistency of the product quality through the application of Six Sigma quality tools. They used a modified DMAIC improvement process. They first performed a Define and Measure phase. Brainstorming was used to identify over 30 problems. They then affinitized the problems into two categories and then prioritized the problems using a weighted voting consensus system.

26 Asecond brainstorming session further defined the problems. They then collected data to measure the problem. The second phase performed was the Analyze phase. They flowcharted the process and identified the value added and non-value added activities.

Principles of Lean manufacturing were introduced during the Analyze phase including:

1) zero waiting time 2)zero inventory 3) scheduling using pull techniques 4) reducing batch sizes 5) line balancing. They used Pareto Analysis within the Lean solutions.

- They performed an Idea Generation phase to develop an implementation plan. They performed a pilot test of the new process, and then implemented the change and checked the result. To control the processes they implemented control charts (a Six Sigma technique) and standard operating procedures (a Lean tool). The Lean Six Sigma implementation reduced the error rate by 98% when converting paper documents to electronic copies, increased productivity over 50%, reduced costs, improved quality, and improved the ability to handle peaks of input data within customer specified turnaround limits. (Goyal, 2002)[13].

- Rockwell Automation Power System has used a program called Power Lean. Power Lean combines the structured problem solving and training structure of Six Sigma programs with the Lean concepts and Kaizen teams. The Power Lean approach uses value stream mapping to identify improvement opportunities and Kaizen events to implement smaller focused improvements. They used the Six Sigma problem solving structure and Black Belt leader concept to facilitate larger improvement projects and to implement Lean flow. (Illing, 2001)

- Six Sigma and Cycle Time Reduction (CTR) have been implemented together in Citibank, an international financial company. They first trained the employees in Six Sigma defect reduction and Cycle Time Reduction. They used process mapping to understand and improve processes to eliminate wasteful steps. They implemented process improvement teams and focused on customers and defects through application of Six Sigma principles and techniques. Citibank improved total customer satisfaction, improved processes and reduced process timelines through application of Six Sigma and CTR. (Rucker, 2000)

- Kaman Industrial Technologies, another distributor, implemented the Rockwell Automation Power Lean System which combines the Lean manufacturing philosophy with Kaizen and Six Sigma tools. They used the Kaizen events to develop improvement plans. Their Lean Six Sigma implementation reduced process steps by up to 50 percent, improved throughput and cycle time and reduced the use of resources. (Trombly, 2002).

- An application of Six Sigma methodology to the manufacture of coal products (Ricardo ,2006) [14], his project is an application of the Six Sigma methodology in a company that manufactures coal products , The specific objective of his investigation was to analyze the elements that constitute the Six Sigma methodology, and to apply it to improve a specific coal manufacture

27 process where the highest amount of scrap is generated. The company’s main current difficulties are a high worker turnover, equipment failures, accidents, and high operating costs .

- Jiju Antony, Maneesh Kumar[14] , showing how the effective introduction and implementation of a Six Sigma program in organizations can lead to business profitability. The application of DMAIC methodology has been extremely valuable in reducing the casting defect in an automotive company. The yield of the process improved from 82% to over 95%. Moreover, the capability of the process has been significantly improved from 0.49 to 1.28. The estimated savings generated from this project was over $111,000 U.S. The project team members included a champion, black belt, process owner, and a green belt. This project was targeted to enhance customer satisfaction by reducing the casting defect in an automotive engine. The results of this project provided greater stimulus for the wider applications of Six Sigma methodology across the company in the future.

- Ricardo Bañuelas, Jiju Antony[14 ] , presented a real case study illustrating the effective use of Six Sigma to reduce waste in a continuous film line. It illustrates in detail how the project was selected, and how the DMAIC phases of the Six Sigma DMAIC methodology were carried out. Several tools and techniques were employed during the course of the project . The estimated savings generated from the project was well over US $120,000 , US (approximately £60,000) per annum. In addition, the waste reduction created a chain reaction in which run time was increased, quality was improved and inspection reduced.

 In reviewing the literature the two approaches to implementing Lean Six Sigma can be summarized as follows :

- Lean and six sigma are complementary approaches. First implement lean thinking to identify and eliminate waste through the use of kaizen events, then implement six sigma to reduce variation and improve quality. Within this approach, lean kaizen and other lean tools are typically applied on less complex problems, while six sigma and statistical tools are applied on more complex problems.

- Use the six sigma DMAIC improvement in a more integrated approach with Lean thinking to focus on cycle time reduction and lean tools and projects. The DMAIC improvement process is used to implement lean projects, such as pull scheduling, such as pull scheduling, set up reduction or cellular manufacturing.

28 REFERENCES

[1] Womack, J.P., & Jones, D.T. (2003). Lean thinking, banish waste and create wealth in your corporation. New York, NY: Free Press .

[2] Womack, J. P., Jones, D. T., & Roos, D. (1990). The machine that changed the world. New York, NY: Rawson Associates.

[3] Bell, S. (2006). Lean enterprise systems. New York, NY:John Wiley & Sons,Inc [4] Brue, G. (2006). What is Six Sigma and why should I care. In J. Calmes (Ed.), Six Sigma for Small Business (pp. 1-15) Madison, WI: Entrepeneur Press.

[5] Akpolat, H. (Ed.) (2004). Six sigma in transactional and service environments. Burlington, VT: Gower Publishing Limited.

[6] Heuring, L. (2004, March). Six Sigma in sight. HRMagazine, 49(3), 76-80.

[7 ] Elizabeth A. Cudney, Merwan Mehta, Richard Monroe, “Combining lean and six sigma for optimal results”, October, 2006

[8] George, M., “Lean six sigma combining six sigma quality with lean speed”, McGraw-Hill,2002

[9] Sandra L. Furtherer, “A framework roadmap for implementing lean six sigma in local government entities”, Dissertation, University of Central Florida, Orlando, Florida, Spring 2004

[10] Sheridan, J., “Aircraft-Controls firm combines Strategies to improve speed, flexibility and quality”, Gale Group, Penton Media Inc., 2000

[11] Dubai Quality Group, “The birth of lean sigma, the manage mentor”, Dubai, 2003 .

[12] Smith, B. and Adams, A., “Lean sigma: Advanced quality”, 55th Annual Quality Congress Proceedings, ASQ, 2001 [13] Goyal, N. (2002). “Applying Lean Manufacturing to Six Sigma – A Case Study.” ISixSigma website, Six Sigma Article Spotlights www.isixsigma.com

[14] Jiju Antony ,Ricardo Bañuelas,Ashok Kumar , World Class Applications of Six Sigma PP 24-81-98