Process Optimization & Innovation
in a Fabrication Environment
Lean - Six Sigma implementation. A
force multiplier for Increasing
Performance & Profitability

Profitability gap with the competition
• A recent study by the NAM and the
Manufacturers Alliance (MAPI) found that U.S.
companies have a 22 percent unit-cost
disadvantage compared with overseas
competitors in a number of process operational
cost areas, a major one being energy.
• According to EDC Chief Economist Peter Hall;
"Managing through the upcoming slow months
and a continued high dollar will require ingenuity
and grit,........ Canada can expect even more
intense competition.”

Process Optimization is the most cost effective solution to
improving productivity. Implementation improves a
company’s ability to lower operating costs & compete
internationally.
Lean targets the root cause of operational inefficiencies
identifying and eliminating waste and in tandem with Six
Sigma based statistical quality control protocols ensures the
production of an error or defect free product.
Process Optimization has 2 dependences/components;
Lean-which focuses on processing efficiency & Six Sigma-
which focuses on product (or service) accuracy by targeting
variation in output. Both are data-driven approaches to
problem resolution rather than personal opinions or
beliefs.

Lean - Six Sigma implementation is thus that silver bullet;
that can level the playground of global competitiveness.
It is that force multiplier for Increasing Performance &
Profitability; that minimizes the effect of lower labor
costs; by significantly
increasing the productivity of the work force.
LEAN targets WASTE. Delay, waste, non-value added work
such as, unnecessary transportation, and motion, waiting
for information needed for a decision, making mistakes
that have to be corrected, etc. are all forms of waste and
rework that affect costs & schedules.

The October 2011 issue of the Harvard Business
Review, states:
"Lean principles can generate significant benefits: faster
response time, higher quality and creativity, lower
costs, reduced drudgery and frustration and greater job
satisfaction." ………….. "Knowledge workers ... grossly
underestimate the amount of inefficiency that could be
eradicated from their jobs."
Delay, waste, non-value added work such as, unnecessary
transportation, and motion, waiting for information needed
for a decision, making mistakes that have to be
corrected, etc are all forms of waste and rework that affect
costs & schedules.

According to Tata Steel "To remain competitive, companies
essentially have to improve business performance. They have to
create a focus on the bottom line.
They have to reduce mistakes in every aspect of the company:
product defects, incorrect billing, wasted materials and
inefficient production
processes. Six Sigma is a disciplined methodology that focuses
on moving every process, product and service toward near-
perfect quality."
The example of GE, Ford, Tata & many others, validate that
implementing Lean & Six Sigma is a proven driver to corporate
profits.

Implementing a Lean mindset also means accurately
analyzing costs.
The following is a case study from Lean.org
• When a customer approached its aluminum casting supplier, a job shop near
Chicago, with the "China price" in hand for a key part, the supplier made an
unusual suggestion: Before relocating the work, let's do some "lean math"
together.
• The lean math analysis looked beyond piece price plus slow freight costs from
China and counted such factors, among others, as:
• Increasing lead time from 12 days to 115
• Additional freight
• Duty
• Carrying costs for additional safety stock inventory
• Increased warranty and scrap costs.
• Instead of re-sourcing, the customer pursued cost, quality, and lead time savings
through extended value-stream mapping with its current supplier in Chicago.

LEAN & SIX SIGMA protocols of Quality Assurance involve data collection &
analysis.
The root cause of any problem can be located & in effect solved.
In the fabrication industry this is almost not done, with the emphasis being
on QC (code compliance), which by definition is resource draining.
My own theory is that fabrication industry, by & large, considers welding as
an art; never mind that welding procedures (WPS) are rigorously
documented. Till such time as the industry makes an effort to collect
operational data; the value (resource) enhancing ability of QA cannot be
leveraged.
Analyzing process data and identifying root causes for defects & deviations
leads to implementation of corrective actions & fool-proofing of errors

Lean Six Sigma Strategies
Problem Statement Goal
• DELAY • FASTER PROCESSING (LEAN)
• DEFECT • BETTER PRODUCT (6 Sigma)
• DEVIATION • CHEAPER PRODUCTION
COSTS (6 Sigma)

Lean promotes efficiency by
ensuring breakdown free
production & targets operational
waste through drastic reduction in
repair or re-work.
Six Sigma targets product (or
service) variation by tracking
process/product metrics. The goal
is to reduce process or product
variation (or process/product
defects) to 3.4 (6 Sigma); spaced
over a million operations.

LEAN targets Waste as the enemy of any process.
WASTES like Delay, Repair, Rework, any value depleting
operations such as, unnecessary transportation and motion of
material or people, waiting for information needed for a
decision, etc.; anything that affect costs and schedules.
By identifying and eliminating it, you can transform your
company into a Leaner, and ultimately, a more profitable
organization.
Lean targets the root cause of operational inefficiencies
identifying and eliminating waste and in tandem with Six
Sigma based statistical quality control protocols ensures the
production of an error or defect free product.

Lean & Six Sigma
Process Optimization has 2 dependences/components; Lean-which focuses on processing
efficiency & Six Sigma- which focuses on product (or service) accuracy by targeting variation in
output. Both are data-driven approaches to problem resolution rather than personal opinions or
beliefs.
LEAN SIX SIGMA
• Lean promotes efficiency by • Six Sigma targets product
ensuring breakdown free (or service) variation by
production & targets tracking process/product
operational waste through metrics. The goal is to
drastic reduction in repair reduce process or product
or re-work. variation (or
process/product defects) to
3.4; spaced over a million
operations.

Lean
• Waste is the enemy of any process. By identifying • Over production. E.g. E.g. Over re-inforcing the
and eliminating it, you can transform your weld. Worse, welding a root pass too wide leads to
company into a Leaner, and ultimately, a more the bead sagging in the overhead position.
profitable organization. • Waiting (time delays or idle time between
processes). E.g. completion of NDE, poor scheduling
of filling passes.
• Transportation ( Improper or unnecessary
handling);E.g. Poor logistics planning, leading to
repeated moving welded cans or plates.
• Inventory Holding or purchasing excessive
material, or materials not meeting code or client
specification.
• Motion Non productive/non value adding
operations such as Materials & tools needing to be
located (poor housekeeping);located at a distance;
• or for repair of defects.
• Over processing (Unnecessary processing steps that
lead to producing scrap or parts that require
rework.
• Defects
• Ignoring innovation. Not using human resources
optimally (not implementing the ideas / suggestions
of employees).Not empowering/involving
employees in optimization campaigns.

Six Sigma
• PDCA • PDCA: Plan-Do-Check-Act or
• SQC • DMAIC:
• Define- the specific problem
or improvement focus area.
• Measure- Data Collection of
existing process.
• Analyze- weaknesses defects-
process deviations & locate
root causes.
• Improve-through data
generated solutions Pareto-
Ishikawa.
• Control- Fool proof the
process.

STRATEGY
• One does not need to invest in exotic & expensive
statistical protocols & further invest in training to
accrue benefits. Leveraging QA personnel into simple
data collection & analysis duties as enumerated below.
• Mapping (flow-charting) the process.
• Value Stream Maps will identify the process steps that
are causing delays. Action can then be taken to remove
the source of those delays.
• Spaghetti Diagrams will in turn identify and eliminate
unnecessary movement of people or materials.

STRATEGY
• Control Charting to measure and monitor the
performance of any process.
• See the example of tracking weld deposition
rates of various welders through a shift, as
well as, an individual welder through an 8
hour shift.
• The plan of action is to locate a root cause or
causes that contribute to performance.

welder id weld deposit
UCL +2 Sigma +1 Sigma Average -1 Sigma -2 Sigma LCL LastCell Range UCL +2 Sigma +1 Sigma Average
A 8.0 9.1 8.6 8.0 7.5 7.0 X weld deposition
6.4 5.9 8 0.6
B 7.5 9.1 8.6 8.0 7.5 7.0 6.4 5.9 7.5 0.5 2.0 1.5 1.1 0.6
9.8
C 6.5 9.1 8.6 8.0 7.5 7.0 6.4 5.9 6.5 1.0 2.0 1.5 1.1 0.6
D 6.0 9.1
9.3 8.6 UCL 8.0 7.5 7.0 6.4 5.9 6 0.5 2.0 1.5 1.1 9.10.6
E 7.0 9.1 8.6 8.0 7.5 7.0 6.4 5.9 7 1.0 2.0 1.5 1.1 0.6
8.8
F 7.5 9.1 8.6 8.0 7.5 7.0 6.4 5.9 7.5 0.5 2.0 1.5 1.1 0.6
weld deposition in Kg/shift
G 8.0 9.1
8.3 8.6 8.0 7.5 7.0 6.4 5.9 8 0.5 2.0 1.5 1.1 0.6
H 7.5 9.1 8.6 8.0 7.5 7.0 6.4 5.9 7.5 0.5 2.0 1.5 1.1 0.6
7.8
I 8.5 9.1 8.6 CL 8.0 7.5 7.0 6.4 5.9 8.5 1.0 2.0 1.5 1.1 7.50.6
J 8.5 9.1
7.3 8.6 8.0 7.5 7.0 6.4 5.9 8.5 0.0 2.0 1.5 1.1 0.6
9.1 8.6 8.0 7.5 7.0 6.4 5.9 8.5 1.9965 1.534704 1.072907 0.6
6.8
9.1 8.6 8.0 7.5 7.0 6.4 5.9 8.5 1.9965 1.534704 1.072907 0.6
9.1
6.3
8.6 8.0 7.5 7.0 6.4 5.9 8.5 1.9965 1.534704 1.072907 0.6
9.1 8.6 LCL 8.0 7.5 7.0 6.4 5.9 8.5 1.9965 1.534704 1.072907 5.9
0.6
9.1
5.8 8.6 8.0 7.5 7.0 6.4 5.9 8.5 1.9965 1.534704 1.072907 0.6
9.1 8.6 8.0 7.5 7.0 6.4 5.9 8.5 1.9965 1.534704 1.072907 0.6
5.3
9.1A 8.6 B 8.0 C
7.5 7.0
D
6.4 E 5.9 F
8.5 G
1.9965 H
1.534704 1.072907
I
0.6
J
9.1 8.6 8.0 7.5 7.0 6.4 5.9 8.5 1.9965 1.534704 1.072907 0.6
welder ID
9.1 8.6 8.0 7.5 7.0 6.4 5.9 8.5 1.9965 1.534704 1.072907 0.6
9.1 8.6 8.0 7.5 7.0 6.4 5.9 8.5 1.9965 1.534704 1.072907 0.6
mR weld deposition

TIME (HR) WELD DEPOSIT
UCL +2 Sigma +1 Sigma Average -1 Sigma -2 Sigma LCL LastCell Range UCL +2 Sigma +1 Sigma Average
1 0.90 1.02 0.95 0.89 0.83 X WELD DEPOSITION PER HOUR
0.76 0.70 0.64 0.9 0.07
2 0.85 1.02
1.05 0.95 0.89 0.83 0.76 0.70 0.64 0.85 0.05 0.23 0.18 0.13 0.07
3 0.85 1.02 0.95 UCL
0.89 0.83 0.76 0.70 0.64 0.85 0.00 0.23 0.18 0.13 1.02
0.07
1.00
4 0.70 1.02 0.95 0.89 0.83 0.76 0.70 0.64 0.7 0.15 0.23 0.18 0.13 0.07
5 0.85 1.02
0.95 0.95 0.89 0.83 0.76 0.70 0.64 0.85 0.15 0.23 0.18 0.13 0.07
6 0.80 1.02 0.95 0.89 0.83 0.76 0.70 0.64 0.8 0.05 0.23 0.18 0.13 0.07
WELD DEPOSITION (KG)
0.90
7 0.85 1.02 0.95 0.89 0.83 0.76 0.70 0.64 0.85 0.05 0.23 0.18 0.13 0.07
8 0.80 0.85
1.02 0.95 0.89 0.83 0.76 0.70 0.64 0.8 0.05 0.23 0.18 0.13 0.07
CL 0.83
1.02
0.80 0.95 0.89 0.83 0.76 0.70 0.64 0.8 0.233357 0.179381 0.125405 0.07
1.02 0.95 0.89 0.83 0.76 0.70 0.64 0.8 0.233357 0.179381 0.125405 0.07
0.75
1.02 0.95 0.89 0.83 0.76 0.70 0.64 0.8 0.233357 0.179381 0.125405 0.07
1.02
0.70 0.95 0.89 0.83 0.76 0.70 0.64 0.8 0.233357 0.179381 0.125405 0.07
1.02 0.95 0.89 0.83 0.76 0.70 0.64 0.8 0.233357 0.179381 0.125405 0.07
0.65 LCL 0.64
1.02 0.95 0.89 0.83 0.76 0.70 0.64 0.8 0.233357 0.179381 0.125405 0.07
0.60
1.02 0.95 0.89 0.83 0.76 0.70 0.64 0.8 0.233357 0.179381 0.125405 0.07
1.02
0.55 0.95 0.89 0.83 0.76 0.70 0.64 0.8 0.233357 0.179381 0.125405 0.07
1.02 1 0.95 0.89
2 0.83 3 0.76 0.70 4 0.64 0.8
5 0.233357
6 0.179381 7 0.125405 0.07
8
1.02 0.95 0.89 0.83 0.76 0.70 HOUR (IN SHIFT) 0.8
0.64 0.233357 0.179381 0.125405 0.07
1.02 0.95 0.89 0.83 0.76 0.70 0.64 0.8 0.233357 0.179381 0.125405 0.07
1.02 0.95 0.89 0.83 0.76 0.70 0.64 0.8 0.233357 0.179381 0.125405 0.07
mR WELD DEPOSITION PER HOUR

STRATEGY
• These control charts can then be used to
identify & benchmark best performance.
• Using the benchmarked performance of
FIG.1, the individual control chart FIG.2 can
now be analyzed to locate reasons for
performance deviation.
• Aside from time, factors such as current, arc
distance, time to change the electrode, etc.
can all be analyzed.

STRATEGY
• Once identified, the root causes of the bottle-
necks in the process can now be
targeted, using Pareto graphing, & Ishikawa
(fish bone) diagrams.
• The example below, shows types of
defects/discontinuities noticed during a
standard vessel fabrication campaign & the
methodology of eliminating them.

Pareto Chart

Materials Process/Methods
Fillers purchased on cost basis Improper parameters To copy all
basisMaterial Cleaniless? fishbone "objects"
Trace elements in
consumables? Wide WPS Use Cntl-Shift-A
parameters
Ambient Air Circulation Improper Weld Preparation?
Why? Problem Statement
Why?
Weld Defects
Cable Grounding?
Training?
Planning/Work Instructions? Contact Cleanliness?
Why? House Keeping?
Why? Preventive Maintenance?
?
People Machine
Ishikawa Fishbone Diagram s
Cause Effect Analysis

The Fish bone or Ishikawa diagram is a systematic way of generating and sorting
hypotheses about possible causes of a problem., through CAUSE & ANALYSIS.
The effect of Process Variables can be demonstrated through a problem statement.
Following a protocol known as 5 Why’s, that is, asking “Why” 5 times for any problem
occurrence; a foundation is laid for identifying the root causes of any problem.
Once the root causes of problems are identified, an action plan can be put in place to
solve the source of production disruption rather than just the symptoms.

STRATEGY
• Matrix diagrams are like check-sheets, or work
instructions, similar to ISO 3834 protocols which
provide the welder with a concise summary of
what parameters will ensure not just adherence
to code, but optimize performance.
• It minimizes performance variation between
welders; fool-proofs the process & prioritizes
corrective actions. In effect, it standardizes
output, making specifications easily achievable.

Conclusion
• Call to Management.
• Spending time on grinding spatter, chipping
slag, grinding welds down to final size or
reworking/repairing parts, is a resource depleting
effort. It slows production rates, reduces operational
efficiencies dramatically; & drains value from the
project.
• Not tracking performance on the shop floor is
equivalent to not tracking your personal finances or
instruments. It is a recipe for disaster especially in
competitive international environments.

Cost effective solutions are readily available to remove
Defects, Deviations & Delays from your process.
You don’t have to spend huge amounts on consultants,
expensive software or training &/or hiring statisticians to
optimize your operations.
You can leverage your existing QC personnel from their
current function as statutory (code) requirement
enforcers, which does not add value to the process.
Instead of a regime of pass-fail, essentially pointing out a
problem (non-conformance) after the fact; have them
initiate a data collection & analysis drive. The root causes
will be located & the process re-designed to eliminate the
source of the defects or deviations.

Conclusion
• Call to QC/QA personnel.
• Get out of the rut of constant conflict with production, issuing
warnings, NCR’s , basically conducting a janitorial clean up every
time a code violation occurs.
• Take a leaf out of the project management groups’ operational
protocols. Chart out an action plan; plan a schedule. Begin with just
a small amount of data & control chart it.
• Involve welders & supervisors in locating the root cause. You will
generate a shop floor ally.
• It is a statistical fact that over 95% of the problems can be
attributed to the process, not to the individual.
• The documented results & the joint effort solutions will result in a
reduction in repair & schedule delay, something that will be noticed
& appreciated.
• Nothing shines like documented profit.

Conclusion
• RTS can provide guidance & training through
simple, uncomplicated collection & analysis of
process data, using very cost effective &
uncomplicated software (under $300) to expose
the root cause.
• Once the root cause or process deficiencies are
eliminated; the Quality function will become a
value addition & improve the bottom line.
• Get a true understanding of the cost of welding, &
use Lean & Six Sigma to generate corrective actions
to become internationally competitive.

Raya Technical Services
• We provide process Optimization services
through implementation of Lean & Six Sigma
• http://www.rayatechnicalservices.com/lean_si
x_sigma
• http://rayatechnicalservices.com/submerged_
arc_welding_nozzles
• http://rayatechnicalservices.com/rfid_process
_optimization_through_traceability