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Applying DMAIC Method for Improving UPPH (Units per Worker per
Hour): A Case Study

Research Proposal · December 2015

DOI: 10.13140/RG.2.2.30031.10404

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National Kaohsiung University of Science and Technology (NKUST)
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 Increasing the UPPH of
OBA ING Workcell
Ho Chi Minh Site
Presenter: Mr. Tuan Dang
Date : December, 2015
 Report Content
Phase Content
Define Team Structure and Project Charter
Measure Data collection
Analyze Data Analysis
Improve Improvement Actions and Analysis, Improvement Verification
Control Control Plan, Summary, Conclusion

2
 Team Introduction
Project champion/leader: Tuan Dang
Project sponsor: Quang Hung
Site Lean Manager: Tuan Pham
Core team members:
Linh Le
Thieu Phung
Thanh Tran
Nang Nguyen
Trung Nguyen

3
Define Phase

4
 Define
Problem/Opportunity Statement Goal Statement
❖Low Output of OBA (UPPH): ❖Increase out put of OBA 30% in December.
▪ ICT V2: 9.8
▪ ICT V3: 7.1
▪ IWL 2xx: 6.7
▪ IWL 28x: 5.9

Project Scope Business Case / Financial Impact

❖OBA Ingenico ❖Saving 10K (USD)/ quarter
• Start Point: Visual Inspection Station ❖Reduce OT
• End Point: Customize/ Packing Station

Savings:
10K/quarter
5
 Define
Project Timeline

Phase Start Date Date Completed

Define 2/Oct/2015 9/Oct/2015
Measure 9/Oct/2015 23/Oct/2015
Analyze 23/Oct/2015 15/Nov/2015
Improve 15/Nov/2015 20/Nov/2015
Control 20/Nov/2015 4/Dec/2015

Voice of the Customer Quality Parameters

Internal customer: UPPH Current:

The WIP at OBA is very high because current ▪ ICT V2: 9.8
capacity of OBA can not consume the output ▪ ICT V3: 7.1
from Packing
▪ IWL 2xx: 6.7
▪ IWL 28x: 5.9
→ Increase out put of OBA 30%

6
 SIPOC DIAGRAM
Suppliers Inputs Required Process Outputs Required Customers

MFG Finished Open the OBA process Finished Capture OBA

Packing Goods box to Goods the Ingenico
check the with defect
cosmetic OBA Low
issue and stamp down
functions time and
high
output

Visual Inspection Loading FVT Customize/ Packing

7
 Process Mapping
Bottle neck Bottle neck
Visual
Loading FVT Custom/Packing
Inspection

100
92 90
90

80

70

60
50
50 44
40

30

20

10

0
Visual inspection Loading FVT Custom/ Packing

8
Measure Phase

9
 Measure Summary
Data Collection

✓ Ingenico OBA output last 3months

✓ Ingenico Headcount last 3 months
✓ Ingenico Current layout

Measurement System Analysis Baseline Performance

1. Due to No product Measurement. Total HC for OBA line: 72 HCs.

2. Cycle time measured by stop watch. Total Labor Cost for PTH Line = $ 257,472/year.
Average = $ 21,456/month
3. Cannot repeat the event.

10
 Measure Summary
✓ Ingenico OBA output last 3months
✓ Ingenico Headcount last 3 months
OBA FORECAST AND HEADCOUNT

11
 Spagetti OBA Flow
✓ Ingenico Current layout

OBA AREA include 4 islands

The current flow is not

smooth

12
Analyze Phase

13
 Root cause Analyze
Method

Mother
Man Low Output
Nature
Not good of OBA
transportation High cycle
Station
time at
design Visual
Process is not
near by balance inspection
the
chamber

High cycle time

•

Not at Customize
impact station Mix-up
material
High cycle time of
FVT

Measurem Material
ent
Machine
14
 Action Plan
Validated root cause Why Why Solution
Not good transportation Distance Station Not optimal Improve layout
located so far layout

Process is not balance Bottleneck Change the design from island to

straight line to improve the output
Mix-up material Not have tool ➢ Change the Design of trolley to
keep more units from 20 to 64 units
➢ Using the Iron Frame for better 5S

High cycle time at Visual High WIP Design the conveyor to transfer to box
inspection from Visual inspection station to the
Packing station

High cycle time of FVT Problem from Workstation is Separate the electrical wire of MES and
MES system not 5S Sagem station by station help to
improve the better 5S of wiring

15
Improve Phase

16
Layout Improvement

17
Improve the Layout

Change the design from island to straight line to

improve the output

18
Improve the trolley design

1. Change the Design of trolley to keep more units

from 20 to 64 units
2. Using the Iron Frame for better 5S

19
Improve the transportation

Design the conveyor to transfer

to box from Visual inspection
station to the Packing station

20
Improve the wiring

Separate the electrical wire of

MES and Sagem station by
station help to improve the
better 5S of wiring

21
 UPPH Improvement
CURRENT PROCESS

Old Process Visual Loading FVT Cus & Packing Total HC Bottleneck CT UPH UPPH
ICT v2 1 1 1 1 4 92 39 9.8
ICT v3 1 1 1 1 4 126 29 7.1
IWL2xx 1 1 1 1 4 135 27 6.7
IWL28x 1 1 1 1 4 153 24 5.9

IMPROVEMENT PROCESS

New Process Visual Loading FVT Cus & Packing Total HC Bottleneck CT UPH UPPH
ICT v2 2 1 2 1 6 45 80 13.3
ICT v3 2 1 2 1 6 55 65 10.9
IWL2xx 2 1 2 1 6 60 60 10.0
IWL28x 2 1 2 1 6 80 45 7.5

22
 DL Improvement
CURRENT OBA DL FUTURES OBA DL

Data in Sept.
Data in Nov.
1. Number of headcount/line: 4
1. Number of headcount/line: 6
2. Number of line: 6
2. Number of line: 3
3. Number of DL in Sept: 72
3. Number of DL in Nov: 54
23
 Cost Saving
Saving
Category Before After Improve Cost Unit Hard Soft
Reduce trolley 4 $ 100 Trolleys $ 400
Reduce manpower move 72 54 18 $ 168 operators $ 3,024

24
Control Phase

25
 Control Summary
Implementation Plan Process Ownership

Project started on October 2nd2015 and

completed on December 4th 2015.
IE are owner of this process and MFG was
responsible to Control the Customize box by
locker.

Documentation Future Opportunities

1. Update the UPPH

Re-layout for same area.
2. Control Output Hourly
3. Update physical layout

26
 Executive Summary
Project Summary Project Approach

▪ Decrease DLs in Sept from 72 to 54

▪ Project apply DMAIC method to solve
❖ Reduce head count of OBA 25% problem with technique as: VOC, SIPOC,
❖ Increase out put of OBA 30% Fishbone find root cause, Brainstorming.

▪ ICT V2: 13.3 ▪ The bottleneck in the line is remove

▪ ICT V3: 10.9 ▪ Root cause: not optimize layout

▪ IWL 2xx: 10 ▪ Solution: Re-arrange layout, design tool

support reduce work load.
▪ IWL 28x:7.5
❖ Optimize space of OBA 24%

Impact on Shareholder Value

▪ Financial benefits
➢ Number of DL in Sept: reduce 18 operator
▪ Monthly Hard saving: $3024
➢ Reduce trolley: 4 trolleys
▪ Monthly soft saving: $400

27
 28
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