MASTER THESIS The implementation of Lean Six Sigma methodology in the wine sector: an analysis of a wine bottling line in Trentino Master Thesis in Industrial Engineering by Sergio De Gracia Directed by Prof. Roberta Raffaelli Academic Year 2013-2014 Table of Contents Abstract ......................................................................................................................................... 9 Acknowledgements ..................................................................................................................... 10 Introduction ................................................................................................................................ 11 Lean Manufacturing .................................................................................................................... 14 1. Lean Manufacturing ................................................................................................................ 14 1.1. TPS in Lean Manufacturing.......................................................................................... 15 1.2. Types of waste and value added ................................................................................. 16 1.2.1. Value Stream Mapping (VSM) ................................................................................... 18 1.3. Continual Improvement process and KAIZEN ............................................................. 19 1.4. Lean Thinking .............................................................................................................. 20 1.5. Factors and techniques involved in Lean Manufacturing ........................................... 21 1.5.1. JIT .............................................................................................................................. 21 1.5.2. Kanban....................................................................................................................... 22 1.5.3. Heijunka .................................................................................................................... 24 1.5.4. Standardization ......................................................................................................... 29 1.5.5. SMED (Single-Minute Exchange of Die) .................................................................... 31 1.5.6. 5S ............................................................................................................................... 36 1.5.7. TPM (Total Productive Maintenance) ....................................................................... 36 1.5.8. Jidoka ......................................................................................................................... 40 1.5.9. TQM (Total Quality Management) ............................................................................ 42 Six Sigma ...................................................................................................................................... 45 2. Six Sigma ................................................................................................................................. 45 2.1. Six Sigma practices ........................................................................................................... 49 2.1.1. Six Sigma role structure ............................................................................................. 49 2.1.2. Six Sigma structured improvement procedure ......................................................... 51 2.1.3. Six Sigma focus on metrics ........................................................................................ 53 2.2. Relationship between quality practices ........................................................................... 55 2.3. Performance in companies .............................................................................................. 56 2.3.1. Critical Successful factors in Six Sigma ...................................................................... 58 2.3.2. Six Sigma performance studies ................................................................................. 59 Lean Six Sigma in the wine-making ............................................................................................. 62 3. Lean Six Sigma ......................................................................................................................... 62 3.1. Lean Six Sigma in the viticulture and winemaking ........................................................... 64 3.1.1. Integrating DMAIC in the viticulture ......................................................................... 67 3.2. Transporting, bottling and labelling the wine .................................................................. 72 3.2.1. Problems in the bottling line production .................................................................. 75 Bottling line: Case study .............................................................................................................. 78 4. Bottling Line: Case study in winery MEZZACORONA............................................................... 78 4.1. Research methodology .................................................................................................... 78 4.2. Obtained information....................................................................................................... 80 4.3. Collected data .................................................................................................................. 89 4.3.1. Bottling processes ..................................................................................................... 89 4.3.2. Defects and rejected bottles data. ............................................................................ 91 4.3.3. Laboratory registered data ....................................................................................... 92 Implementing Lean Six Sigma methodology on the bottling line ............................................... 94 5. Implementing Lean Six Sigma methodology on the bottling line of winery Mezzacorona. ... 94 5.1. Phase 1: DEFINE ............................................................................................................... 94 5.2. Phase 2: MEASURE ........................................................................................................... 98 5.2.1. Current VSM .............................................................................................................. 98 5.2.2. Defects and rejected bottles measurement ........................................................... 100 5.2.3. Defects and variability of bottling process variables .............................................. 102 5.3. Phase 3: ANALYSE ........................................................................................................... 105 5.3.1. Future VSM .............................................................................................................. 105 5.3.2. Analysis of defects and rejected bottles ................................................................. 108 5.4. Phase 4: IMPROVE ..................................................................................................... 117 5.4.1. Lean improvement proposal ................................................................................... 117 5.4.2. Improvement strategy for defects and rejected bottles reduction ........................ 121 5.5. Phase 5: CONTROL ......................................................................................................... 125 Conclusions ............................................................................................................................... 130 References ................................................................................................................................. 134 Annex ........................................................................................................................................ 140 ANNEX 1. SIPOC diagram ................................................................................................... 141 ANNEX 2. Actual VSM (Value Stream Mapping) ................................................................ 142 ANNEX 3. Future VSM (Value Stream Mapping ) .............................................................. 143 ANNEX 4. Pareto Charts ..................................................................................................... 144 ANNEX 4.1. Pareto chart of Line A (1 day) and Line B (2days) .................................... 144 ANNEX 4.2. Pareto chart within 2 days of samples in the Line B ................................ 145 ANNEX 4.3. Pareto Chart of rejected bottles depending on the control place of the line B. ................................................................................................................ 146 ANNEX 5. Extraction Force charts and data ...................................................................... 147 ANNEX 5.1. Extraction force basic statistics by Line ..................................................... 147 ANNEX 5.2. Extraction Force basic statistics by Type of Cork ...................................... 147 ANNEX 5.3. Analysis-of-variance ANOVA of Extraction Force by Type of Cork ............ 147 ANNEX 6. Volume of Wine data ........................................................................................ 148 ANNEX 6.1. Volume of Wine basic statistics by Line ...................................................