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CONTENT
INTRODUCTION____________________________________________________________________2
1. THEORETICAL PART__________________________________________________3
1.1 Description of Six Sigma_____________________________________________________3
1.2 Doctrine________________________________________________4
1.3 Methodologies___________________________________________5
1.4 Implementation roles_________________________________________________7
1.5 Origin and meaning of the term "six sigma process"______________________9
1.6 Role of the 1,5 sigma shift__________________________________10
1.7 Criticism___________________________________________________12
1.8 Application_________________________________________________14
2. PRACTICAL PART
2.1Main characteristic of chosen product________________________________16
2.2 Description of innovation__________________________________19
2.3 Analysis of main consumers________________________________20
2.4 Analysis of main competitors________________________________________21
3. ANALYSIS OF PRODUCTION LINE__________________________________________________24
3.1 Sequence of operations____________________________________24
3.2 Amount of workers and time_________________________________________29
3.3 Description of the equipment________________________________________29
4. PRODUCTION PLAN OF PRODUCT WITH INNOVATION_____________31
4.1 Plan of the works__________________________________________________________31
4.2 Critical path_____________________________________________________________________________32
4.3 Calculation of the network graph indicators______________________________________32
5. NEW DESIGN_____________________________________________33
6. MAIN TECHNIVAL AND ECONOMIC INDICATORS OF PERFORMANCE
________________________________________________________________________________________34
7. CONCLUSION___________________________________________________________________36
8. LIST OF REFERECES_______________________________________37
INTRODUCTION
The main aim of this course project to consolidate skills on the basis of
key indicators of designing and manufacturing a product on the production
company.
Presented course work structurally consists of four sections.
The first section theoretical part provides information about the Six
Sigma a a set of techniques, and tools for process improvement.
Second part of this project encompasses the information about market of
Pringles chips, description of chosen company, its main competitors and
consumers, and depiction of innovation.
In the third section there is production plan of product with the innovation
and network graph.
The forth part includes description of a package new design which was
invented in framework of course project.
THEORETICAL PART
process.
2)
designs.
The DMAIC project methodology has five phases:
Define the system, the voice of the customer and their requirements,
Measure key aspects of the current process and collect relevant data.
relationships. Determine what the relationships are, and attempt to ensure that all
factors have been considered. Seek out root cause of the defect under investigation.
-
Control the future state process to ensure that any deviations from
target are corrected before they result in defects. Implement control systems such
as statistical process control, production boards, visual workplaces, and
continuously monitor the process.
Some organizations add a Recognize step at the beginning, which is to
recognize the right problem to work on, thus yielding an RDMAIC methodology.
The DMADV project methodology, known as DFSS ("Design For Six
Sigma"), features five phases:
-
Define design goals that are consistent with customer demands and the
enterprise strategy.
-
previous step
-
Verify the design, set up pilot runs, implement the production process
5 Whys
Process capability
Analysis of variance /
Project charter
Quality
Axiomatic design
Business
Deployment (QFD)
Process
Mapping
-
Function
Quantitative
marketing
Check sheet
Chi-squared
test
of
Control chart
as a swimlane map)
Feedback
Management
(EFM)
systems
-
Run charts
Scatter diagram
SIPOC
analysis
Correlation
Cost-benefit analysis
CTQ tree
of SIPOC)
Design of experiments
Stratification
Taguchi methods
Histograms
Pareto analysis
TRIZ
Pareto chart
Pick chart
COPIS
analysis
management. They are responsible for setting up a vision for Six Sigma
implementation. They also empower the other role holders with the freedom and
resources to explore new ideas for breakthrough improvements.
-
on Six Sigma. They devote 100% of their time to Six Sigma. They assist
champions and guide Black Belts and Green Belts. Apart from statistical tasks,
they spend their time on ensuring consistent application of Six Sigma across
various functions and departments.
-
Black Belts operate under Master Black Belts to apply Six Sigma
methodology to specific projects. They devote 100% of their valued time to Six
Sigma. They primarily focus on Six Sigma project execution and special leadership
with special tasks, whereas Champions and Master Black Belts focus on
identifying projects/functions for Six Sigma.
-
Green Belts are the employees who take up Six Sigma implementation
along with their other job responsibilities, operating under the guidance of Black
Belts.
Some organizations use additional belt colours, such as Yellow Belts, for
employees that have basic training in Six Sigma tools and generally participate in
projects and "White belts" for those locally trained in the concepts but do not
participate in the project team. "Orange belts" are also mentioned to be used for
special cases.
1.5 Origin and meaning of the term "six sigma process"
The term "six sigma process" comes from the notion that if one has six
standard deviations between the process mean and the nearest specification limit,
as shown in the graph, practically no items will fail to meet specifications. This is
based on the calculation method employed in process capability studies.
Capability studies measure the number of standard deviations between the
process mean and the nearest specification limit in sigma units, represented by the
Greek letter (sigma). As process standard deviation goes up, or the mean of the
process moves away from the center of the tolerance, fewer standard deviations
will fit between the mean and the nearest specification limit, decreasing the sigma
number and increasing the likelihood of items outside specification.
10
at some point in the future (1.5 sigma shift, coloured red and blue), there is still a
good safety cushion. This is why Six Sigma aims to have processes where the
mean is at most 6 away from the nearest specification limit.
1.6 Role of the 1,5 sigma shift
Experience has shown that processes usually do not perform as well in the
long term as they do in the short term. As a result, the number of sigmas that will
fit between the process mean and the nearest specification limit may well drop over
time, compared to an initial short-term study. To account for this real-life increase
in process variation over time, an empirically-based 1.5 sigma shift is introduced
into the calculation. According to this idea, a process that fits 6 sigma between the
process mean and the nearest specification limit in a short-term study will in the
long term fit only 4.5 sigma either because the process mean will move over
time, or because the long-term standard deviation of the process will be greater
than that observed in the short term, or both.
Hence the widely accepted definition of a six sigma process is a process
that produces 3.4 defective parts per million opportunities (DPMO). This is based
on the fact that a process that is normally distributed will have 3.4 parts per million
beyond a point that is 4.5 standard deviations above or below the mean (one-sided
capability study). So the 3.4 DPMO of a six sigma process in fact corresponds to
4.5 sigma, namely 6 sigma minus the 1.5-sigma shift introduced to account for
long-term variation. This allows for the fact that special causes may result in a
deterioration in process performance over time, and is designed to prevent
underestimation of the defect levels likely to be encountered in real-life operation.
The role of the sigma shift is mainly academic. The purpose of six sigma is
to generate organizational performance improvement. It is up to the organization to
determine, based on customer expectations, what the appropriate sigma level of a
process is. The purpose of the sigma value is as a comparative figure to determine
whether a process is improving, deteriorating, stagnant or non-competitive with
others in the same business. Six sigma (3.4 DPMO) is not the goal of all processes.
Sigma levels
11
Sigma (with
level
1.5 shift)
DPMO
Percent
Percentage
Short-
Long-
defective
yield
31%
0.33
0.17
0.5
308,538 31%
69%
0.67
0.17
1.5
66,807 6.7%
93.3%
1.00
0.5
2.5
6,210
0.62%
99.38%
1.33
0.83
3.5
233
0.023%
99.977%
1.67
1.17
4.5
3.4
0.00034%
99.99966%
2.00
1.5
5.5
0.019
0.0000019%
99.9999981% 2.33
1.83
12
13
14
improvement is accidental (Latzko 1995). Thus, when looking at the evidence put
forward for Six Sigma success, mostly by consultants and people with vested
interests, the question that begs to be asked is: are we making a true improvement
with Six Sigma methods or just getting skilled at telling stories? Everyone seems
to believe that we are making true improvements, but there is some way to go to
document these empirically and clarify the causal relations.
1.7.5 Criticism of the 1.5 sigma shift
The statistician Donald J. Wheeler has dismissed the 1.5 sigma shift as
"goofy" because of its arbitrary nature. Its universal applicability is seen as
doubtful.
The 1.5 sigma shift has also become contentious because it results in stated
"sigma levels" that reflect short-term rather than long-term performance: a process
that has long-term defect levels corresponding to 4.5 sigma performance is, by Six
Sigma convention, described as a "six sigma process." The accepted Six Sigma
scoring system thus cannot be equated to actual normal distribution probabilities
for the stated number of standard deviations, and this has been a key bone of
contention over how Six Sigma measures are defined. The fact that it is rarely
explained that a "6 sigma" process will have long-term defect rates corresponding
to 4.5 sigma performance rather than actual 6 sigma performance has led several
commentators to express the opinion that Six Sigma is a confidence trick.
1.8 Application
Six Sigma mostly finds application in large organizations. An important
factor in the spread of Six Sigma was GE's 1998 announcement of $350 million in
savings thanks to Six Sigma, a figure that later grew to more than $1 billion.
According to industry consultants like Thomas Pyzdek and John Kullmann,
companies with fewer than 500 employees are less suited to Six Sigma
implementation, or need to adapt the standard approach to make it work for them.
Six Sigma however contains a large number of tools and techniques that work well
in small to mid-size organizations. The fact that an organization is not big enough
to be able to afford Black Belts does not diminish its abilities to make
15
improvements using this set of tools and techniques. The infrastructure described
as necessary to support Six Sigma is a result of the size of the organization rather
than a requirement of Six Sigma itself.
16
2 PRACTICAL PART
2.1 Description of Pringles
17
work, and set out to improve on the Pringles taste, which he succeeded in doing.
While Baur was the true inventor of the Pringles chip, according to the patent,
Liepa was the inventor of Pringles. Gene Wolfe, a mechanical engineer-author
known for science fiction and fantasy novels, developed the machine that cooks
them. Their consistent saddle shape is mathematically known as a hyperbolic
paraboloid. Their design is reportedly aided by supercomputers to ensure safe
aerodynamics while packaging.
There are several theories behind the origin of the name "Pringles". One
theory refers to Mark Pringle, who filed a US Patent 2,286,644 titled "Method and
Apparatus for Processing Potatoes" on March 5, 1937. Pringle's work was cited by
Procter & Gamble (P&G) in filing their own patent for improving the taste of
dehydrated processed potatoes. Another theory suggested two Procter advertising
employees lived on Pringle Drive in Finneytown (north of Cincinnati, Ohio), and
the name paired well with potato. Another reference says that P&G chose the
Pringles name from a Cincinnati telephone book.
They were originally known as "Pringles Newfangled Potato Chips", but
other snack manufacturers objected, saying Pringles failed to meet the definition of
a potato "chip". The US Food and Drug Administration weighed in on the matter,
and in 1975, they ruled Pringles could only use the word "chip" in their product
name within the following phrase: "potato chips made from dried potatoes". Faced
with such an unpalatable appellation, Pringles eventually opted to rename their
product potato "crisps" instead of chips. This later led to other issues in the United
Kingdom, where the term potato "crisps" refers to the product Americans call
potato "chips".
In April 2011, P&G agreed to the $2.35 billion sale of the brand to
Diamond Foods of California, a deal which would have more than tripled the size
of Diamond's snack business. However, the deal fell through in February 2012
after a year-long delay due to issues over Diamond's accounts. On May 31, 2012,
Kellogg Company officially acquired Pringles for $2.695 billion as part of a plan
18
19
In July 2008 in the London High Court, P&G lawyers successfully argued
that Pringles were not crisps (even though it said "Potato Crisps" on the container)
as the potato content was only 42% and their shape, P&G stated, "is not found in
nature". This ruling, against a United Kingdom VAT and Duties Tribunal decision
to the contrary, exempted Pringles from the then 17.5% VAT for potato crisps and
potato-derived snacks. In May 2009, the Court of Appeal reversed the earlier
decision. A spokesman for P&G stated it had been paying the VAT proactively and
owed no back taxes.
Table 2.1 Description of the product
Description of product
Carbs
Cm(H2O)n
57.97
Fiber
(C6H10O5)n
10.9
Sugar
C6H12O6
9.75
Protein
NH2CHRCOOH
4.13
Total fat
H3C
24.23
Sodium
Na
246
20
By age
3% 2%
18%
11%
13 years
25%
15 years
17 years
19 years
41%
21 years
>21 years
By gender
41%
59%
Woman
Man
21
22
Global
As we can see, Pringles main competitors are:
1)
Lays - is the brand name for a number of potato chip varieties as well
as the name of the company that founded the chip brand in 1932. A company
owned by PepsiCo since 1965. (8.6% market share) (Advantages price, taste,
flavors)
23
Our advantages:
-
Satiety;
Abundance of advertising;
Packaging;
Quality;
Taste;
Diversity of flavors.
Satiety
Abundance of advertising
Packaging
Quality
Taste
Diversity of flavors
24
Name
Amount
Aggregate elevator
Cone mixer
Quantitative Feeder
Scrap Conveyor
Inclined hoist
Smoothing machine
10 Tabletting machine
11 Molding machine
13 Freezer
14 Grinder
15 Frying machine
16 Oil-fired boiler
17 Oil tank
18 Filter
25
19 Drain conveyor
21 Cooling Conveyor
22 Control Box
26
3. Mixing step
The continuous mixing of the dry ingredients with water has been preferred
from the very beginning as the possible alternative to batch mixing. The main
reason for this preference was the evidence of instability in the process when the
mixed dough was held for different times before being sheeted.
27
with
an
oil
temperature
of
185
C.
The turn over of the oil in the type of fryer used for stackable potato chips is
generally around 8 hours. Being the typical characteristics of this product its long
shelf life, the oil quality and management must be at the highest possible standards.
7. Seasoning device:
The variety of seasonings necessary to cover the market request led to the
need of different seasoning units designed around the seasoning characteristics.
28
29
New
Model Number:
ALSC-250
Power(W):
120KW
Certification:
BV,ISO9001
Product Name:
Engine:
Electricity
Capacity:
250kg/h
Place of Origin:
Application:
Chips
Weight:
Warranty:
1 year
Material:
Stainless Steel
Type:
fully automatic
Usage:
Brand Name:
ALLANCE
Voltage:
220V/380V
Dimension(L*W*H):
30
different line
After-sales Service Provided:
Color:
Silver
Raw Material:
Potato starch
Package:
31
Name
Name of operation
Durati
IP
on
1
Budgeting
Design
Bespeak materials
12
C,E
design
5
Implementation of new
design
Delivery materials
10
Locate materials in
warehouses
10
G,I
11
Standardization
12
Launching
32
Code
Time
Tes
Tef
Tls
Tlf
Slack
0-1
1-2
10
10
1-3
18
19
15
2-4
10
11
10
11
3-6
23
23
19
3-9
10
14
19
29
15
4-5
12
11
23
11
23
5-6
23
23
23
23
6-7
23
25
23
25
7-8
25
30
25
30
8-11
30
30
30
30
9-10
14
15
29
30
15
10-11
15
15
30
30
15
11-12
30
32
30
32
12-13
32
34
32
34
13-14
34
35
34
35
33
34
2011
2012
Non-current assets
357.4
326.7
223.3
361.8
580.7
688.5
177.8
192.1
(Dollars in millions)
Current assets
(Dollars
in
millions)
Total assets:
Total
current
liabilities
to
recover
in
project.
Pringles invests $400,000 in more efficient equipment. The cash savings from the
new equipment is expected to be $100,000 per year for 10 years.
35
36
7 CONCLUSION
In the first theoretical part of a course project we became familiar with the
concept of Six Sigma. It was sad that Six Sigma is a set of techniques, and tools for
process improvement. It was developed by Motorola in 1986, coinciding with the
Japanese asset price bubble which is reflected in its terminology.
We also acquainted with Six Sigma doctrine, methodologies, its
implementation roles, origin and meaning of the term "six sigma process", levels,
criticism and application.
In the second part of a project I scrutinized the production process of
Pringles US chips one of the most popular snack in the world. I also created and
embed the new design, which is new convenient tube, which you can abate with a
twist, and the new eco-friendly biodegradable packaging.
In general Pringles tube is made out of plain brown paper and foil-backed
paper. The idea is to substitute plain brown paper with natural resources including
sugarcane waste fibre, corn starch, wood cellulose and recycled unbleached paper.
For analyzing the economic situation I have calculated some main technical
and economic indicators of performance such as liquidity coefficient and payback
period.
According to calculations we can see that liquidity coefficient increases on
50.7%, thus project is beneficial to accept. And the payback period is 4 years,
which is quite short period.
37
8 LIST OF REFERENCES
-
http://en.wikipedia.org/wiki/Six_Sigma
http://en.wikipedia.org/wiki/Pringles
http://caloriecount.about.com/tag/food/pringles
http://www.youtube.com/watch?v=V83rdbSpiGA
http://www.pringles.co.uk/home
http://www.kelloggs.com/en_US/our-brands.html
http://www.annualreport2012.kelloggcompany.com/highlights.htm
http://shhengguang.en.alibaba.com/product/599349293-
219234316/Automatic_pringles_potato_chips_production_line.html
-
http://www.getfilings.com/sec-filings/120215/KELLOGG-CO_8-
K/d300946dex992.htm