Production yield imrovement activities at Aldila composite products co. LTD Using lean six sigma approach
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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
Students name Dinh The Phuc Page 2
STATEMENT OF AUTHORSHIP
I P Y Ient 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
Students 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
Students 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
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COMMENTS OF PROFESSOR
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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
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D. CONTROL 61
PART 3: VISUAL FACTORY 64
CONCLUSION 65
REFERENCES 66
APPENDIX: 67
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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
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LIST OF PICTURES IN REPORT
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LIST OF TABLES IN REPORT
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INTRODUCTION
This chapter begins with the background of the thesis with general 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 its
A G C A G A Mals.
T C AMTC A G C P C
Materials. AMTC was previously established as a separate company, which contained the
C
In 1994, the Company started production of its principal raw material for golf shafts, graphite
prepreg, which consists of carbon fibers combined with epoxy resin in sheet form. See
MC M T C
graphite prepreg requirements internally and also sells prepreg externally to third parties.
In 1998, the Company, through its AMTC subsidiary, established a manufacturing facility in
Evanston, Wyoming for the production of carbon fiber; in an effort to further vertically
integrate its manufacturing operations. On October 29, 1999, SGL Carbon Fibers and
C I “GL C
manufacturing operation. The Company and SGL entered into an agreement to operate the
facility through a limited liability company with equal ownership interests between the joint
venture members. The Company and SGL also entered into supply agreements with the new
C F T LLC CFT cost plus an
agreed-upon mark-up. Profits and losses of CFT were shared equally by the partners. The
Company sold its remaining 50% interest in CFT to SGL on November 30, 2007. The Company
secured a five year supply agreement with CFT. The agreement allows, but does not require,
the Company to purchase up to 900,000 pounds of carbon fiber during the first year and up
to approximately 996,000 pounds of carbon fiber in years two through five.
On December 31, 2010, the Company announced that it had finalized the acquisition of the
assets, including accounts receivable, inventory, equipment and intellectual property, of
V A M “ V LLC M“V
V A rows and related accessories used in
T C C
Products business segment.
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On December 5, 2012, Mitsubishi Rayon Co., Ltd. (MRC) announced its intention to acquire
A I A A M
29, 2013. The official effective time of the acquisition is April 1, 2013. Through this
A
and MRC golf shaft brands (Diamana, Fubuki, and Bassara) with an aim to further grow our
business in the North American carbon fiber golf shafts market. Also, by corporation of the
carbon fiber Prepreg business of Aldila, MRC aim to strengthen the intermediate materials
business in North America together with Mitsubishi Rayon Carbon Fiber and Composites,
Inc., which is our competence center for carbon fiber and composites business in the U.S
ALDILA GOLF SHAFT PRODUCTS
Graphite Golf Shafts - Aldila is well-positioned to remain a leader in the market for graphite
shafts due to its innovative and high-quality products, strong customer relationships, design
and composite expertise and significant manufacturing capabilities. Most golf clubs being
sold today have shafts constructed from steel or graphite, although limited numbers are also
G
the first major improvement in golf shaft technology since steel replaced wood in the 19
The first graphite shafts had significant torque (twisting force) and appealed primarily to
weaker-swinging players desiring greater distance. Graphite shaft technology has
subsequently improved so that shafts can now be designed for golfers at all skill levels.
Unlike steel shafts, the design of graphite shafts is easier to alter with respect to weight, flex,
flex location, balance point and torque to produce greater distance, increased accuracy and
to the golfer. The improvements in the
design and manufacture of graphite shafts and the growing recognition of their superior
performance characteristics for many golfers compared to steel have resulted in increased
demand for graphite shafts by golfers of all skill levels. The initial acceptance of graphite
shafts was primarily for use in woods. According to the 2011 U.S. National Consumer Survey,
conducted by The Darrell Survey Company, graphite continues to dominate the professional
and consumer wood club market. The 2011 Survey found that over 99% of new drivers
purchased contained graphite shafts. In hybrid clubs, (also known as utility clubs and driving
irons), 98% of the new clubs purchased had graphite shafts in them. The acceptance of
graphite shafts in irons has not achieved the same success as in metal woods and hybrids.
The 2011 Survey found that irons with graphite shafts accounted for 26% of new club
purchases. Aldila offers a broad range of innovative and high-quality graphite golf shafts
designed to maximize the performance of golfers of every skill level. The Company
manufactures hundreds of unique graphite shafts featuring various combinations of
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performance characteristics such as weight, flex, flex point, balance point and torque. All of
C
epoxy resins. The Company regularly evaluates new composite materials for inclusion in the
C .
T C
manufacturers) to accommodate specific golf club designs. In addition, the Company
researches new and innovative shaft designs on an independent basis, which has enabled the
Company to produce a variety of new branded shafts and co-branded shafts as well as
T C -branded
models are typically sold to golf club manufacturers, distributors and golf pro and repair
shops and are used either to assemble a new custom club from selected components or as an
after-market re-shaft of existing clubs. The Company also helps develop cosmetic designs to
the customer does not require a
shaft with customized performance characteristics. The prices of Aldila shafts typically range
from $5 to $300.
The Company introduced the NV Prototype at the January 2003 PGA Merchandise Show and
subsequently renamed it to the NV®. The NV® went on to become the most successful new
C A
T NV C M L
T MLT T C NV NV“
NV Protot NV H NV“ H G A
product line extensions and new product lines target specific objectives, whether it is for a
higher initial launch angle, more controlled launch angle or reduced torque to target various
I A V“ P V“
P H
Both are high-end, high performance shafts featuring carbon nanotubes as well as aerospace
A I A
shipping the Aldila DVS® wood and hybrid shaft. The DVS® features a new responsive tip
design combined with very low torque to maximize kick at impact while still maintaining
T DV“ A M L T
features carbon nanotubes for optimal feel and performance.
The Company introduced the VooDoo® shaft in June of 2008 featuring S- T
We began offering it on Tour with the VooDoo® name and colors in February of 2008. What
sets the VooDoo® apart from other shafts is its patent pending S-core, or stabilized core,
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T nd provide outstanding accuracy with each
swing. The shaft utilizes a high modulus carbon fiber stabilizing rib running the length of the
shaft. The internal rib system increases hoop strength and cross sectional stiffness by
approximately 80% greater than conventional graphite shafts, and up to 60% greater than
T
VooDoo® to better resist shaft ovaling and deformation during the swing, which maximizes
energy transfer t
swing, it loads and unloads more consistently, enabling you to more reliably deliver the club
head to the ball with every swing.
In early 2010, the Company introduced the Aldila RIP® to the PGA Tour. It was released to the
market during the summer of 2010. The Aldila RIP® employs patent-pending technology and
exclusive materials to completely transform shaft design from the inside out. RIP
Technology® repositions the materials and patterns to maximize the flexural and torsion
performance characteristics of the carbon fiber. Through the use of computer modeling
technology and exclusive materials provided by the Aldila Materials Division, Aldila engineers
were able to completely rethink golf shaft design and performance. The result is a
revolutionary shaft with optimum flex and torque characteristics with incredible feel. RIP
Technology® provides a shaft with lower torque, increased tip stability, and better tip
stiffness control than any shaft made with similar materials employing a conventional ply
configuration.
In 2011 and 2012, The new Aldila RIP Phenom NL is the stiffest tip, lowest launch shaft
A I A T RIP T a
unique shaft design to create a new and innovative flex profile for maximum distance and
control. We call this new technology the Hyperbolic Flex Zone. It features a very stiff tip
section to promote lower launch and spin control with a very firm butt section for an
incredible stable feel, while the center section of the shaft is softer to provide unmatched
kick through impact for maximum ball speed
The RIP Iron has been used to win multiple times on Tour in 2013. What sets the RIP Iron
apart is that I
T A RIP A T RIP
Technology® with unique composite construction to create a new and innovative shaft flex
profile for maximum distance and control H F T RIP T
repositions the materials and patterns to optimize the performance characteristics of the
shaft. Hyperbolic Flex Technology provides a stiff tip section for optimal launch and spin
control, with a very firm butt section for an incredibly stable feel, while the center section of
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the shaft is softer to provide outstanding kick through impact to maximize ball speed. Shafts
are available in both 90 and 115 gram designs.
In 2013 and 2014, The new Aldila Tour Green, Tour Blue Tour series JV utilize the latest
materials and manufacturing technology to create a new shaft designed to maximize the
power of your individual golf swing. The constant taper shaft profile provides exceptional
feel and a smooth, controlled release. The Tour Green is made with the latest generation of
A M L MLT T
construction of a shaft with outstanding performance and unparalleled consistency.
Aldila believes that it will continue to be successful in the branded segment for the
foreseeable future and has focused its
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Figure 1: Aldila Golf shaft Products
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Students name Dinh The Phuc Page 17
Figure 2: Aldila Products 2014 Products (Tour Blue and Tour Green)
Figure 3: Aldila Fitting Chart 2014
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PROBLEM AREA
Companies today are forced to save money and resources if they want 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 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
KPI K Pormance Indicators). Key performance indicators measure the
performance of a process; they indicate the yield of processes so objectives can be achieved.
At Aldila Composite Products KPI
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 out of a process (go to Finished
goods warehouse) divided by the number of units 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 to reduce waste and
variation in golf shaft manufacturing process. This methodology has been used worldwide to
improve processes not only in manufacturing but also in services.
OBJECTIVES
i. Use of the DMAIC methodology to:
a. Explain each of the phases of the methodology and all the tools needed to
successfully improve shaft reject rate.
b. Determine with the use of statistic tools the variation in the studied process.
c. Determine waste improvements with the use of Lean tools such as Value Stream
Mapping and others.
d. Make improvements in the process without the use of new resources
ii. Determine the savings the company will obtain with the implementation of the
project
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iii. Explain how Lean Six Sigma methodology can help companies improve processes
ity and continuous improvement.
PART 1: FRAME OF REFERENCE
This chapter presents a 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 services in a constant way. It is a management 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 ideas were born at Motorola in 1986 by Bill Smith who first formulated the
principles of this methodology. Also six sigma was inspired by other quality improvement
techniques such as TQM (Total Quality Management), quality control and zero defects, these
techniques based on gurus such as Deming, Juran, Ishikawa and many others.
Sigma is defined as a statistical term that refers to the standard deviation of a process
around its mean. In a normally distributed process, 99.73% of measurements will fall within
±3.0 sigma. Motorola with this study noticed that their processes such as assembling a part,
tended to shift 1.5 sigma over time. This means that for a process with a normal distribution
and normal variation, specification limits of ±6 are needed to produce just 3.4 defects per
million opportunities. When said to have a ±6 sigma level means the process is working at a
perfect level with minimum defects as possible.
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Figure 4: Six Sigma Curve (mvpprograms.com, 2011)
In Six Sigma, failure rate can be referred to as defects per opportunity (DPO) or defects per
million opportunities (DPOM). If the measured process only has 3.4 defects every million
parts, then the process is said to be at a 6 sigma level. Since perfect processes do not exist, it
is common to have a normal process with no more than a 5 sigma.
Figure 5: Normal distribution with ±1.5 sigma shift
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Figure 6: Defects per million and Sigma Quality
It is to be noted that the curve is asymptotic, so progress is easy at the beginning but then
becomes more and more difficult. So it is important to measure it in terms of cost-benefit
analysis.
The Six Sigma methodology comprises both a statistical perspective and a business
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
K A
Either viewpoint of the Six Sigma approach should result in a very streamlined customer-
oriented manufacturing flow and organization, where all processes encompass minimum
variation, correspond perfectly to each other, and deliver world-class quality output.
One very characteristic part of the Six Sigma program is the importance of commitment from
the highest leader(s) in the company. The program will have difficulties achieving success
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without dedication and support from the top management. Six Sigma methodology contains
a lot of tools and techniques which can be used separately from the Six Sigma program;
however, the Six Sigma program (full scale implementation) demands a lot of resources
which could be hard to convince a conservative management board to approve financially,
Bergman and Klefsjö (2001); Magnusson et al (2003).
Some of the benefits companies can achieve with six sigma implementation are:
C C
Defect reduction D
Culture changes Customer relations improvements
CHAPTER 2: LEAN MANUFACTURING
When we talk about Lean, we talk about eliminating waste. Lean concepts were born at the
Toyota Company in Japan with gurus such as Singeo Shingo and Taichii Ohno. The Toyota
Production System was soon copied by many companies around the world.
In 1996 J W T M C W
approach to lean and helped introduce the seven types of waste that anyone can encounter
in a plant or production process. These seven wastes are:
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Figure 7: the seven wastes
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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 Tool
What Is It?
How Does It Help?
5S
Organize the work area:
Sort (eliminate that
which is not needed)
Set In Order (organize
remaining items)
Shine (clean and inspect
work area)
Standardize (write
standards for above)
Sustain (regularly apply
the standards)
Eliminates waste that results
from a poorly organized work
area (e.g. wasting time
looking for a tool).
Jidoka
(Autonomation)
Design equipment to
partially automate the
manufacturing process
(partial automation is
typically much less
expensive than full
automation) and to
automatically stop when
defects are detected.
After Jidoka, workers can
frequently monitor multiple
stations (reducing labor
costs) and many quality
issues can be detected
immediately (improving
quality).
Just-In-Time
(JIT)
Pull parts through
production based on
customer demand instead
of pushing parts through
production based on
projected demand. Relies
on many lean tools, such
as Continuous Flow,
Heijunka, Kanban,
Standardized Work and
Takt Time.
Highly effective in reducing
inventory levels. Improves
cash flow and reduces space
requirements.
Kaizen
A strategy where
Combines the collective
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(Continuous
Improvement)
employees work together
proactively to achieve
regular, incremental
improvements in the
manufacturing process.
talents of a company to
create an engine for
continually eliminating waste
from manufacturing
processes.
Kanban (Pull
System)
A method of regulating the
flow of goods both within
the factory and with
outside suppliers and
customers. Based on
automatic replenishment
through signal cards that
indicate when more goods
are needed.
Eliminates waste from
inventory and
overproduction. Can
eliminate the need for
physical inventories (instead
relying on signal cards to
indicate when more goods
need to be ordered).
Muda (Waste)
Anything in the
manufacturing process
that does not add value
from the customer’’s
perspective.
Eliminating muda (waste) is
the primary focus of lean
manufacturing.
PDCA (Plan, Do,
Check, Act)
An iterative methodology
for implementing
improvements:
Plan (establish plan and
expected results)
Do (implement plan)
Check (verify expected
results achieved)
Act (review and assess;
do it again)
Applies a scientific approach
to making improvements:
Plan (develop a hypothesis)
Do (run experiment)
Check (evaluate results)
Act (refine your
experiment; try again)
Poka-Yoke
(Error Proofing)
Design error detection and
prevention into production
processes with the goal of
achieving zero defects.
It is difficult (and expensive)
to find all defects through
inspection, and correcting
defects typically gets
significantly more expensive
at each stage of production.
Single Minute
Exchange of Die
(SMED)
Reduce setup
(changeover) time to less
than 10 minutes.
Techniques include:
Convert setup steps to
Enables manufacturing in
smaller lots, reduces
inventory, and improves
customer responsiveness.
