Six Sigma process improvement project final presentation.

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GOODWILL INDUSTRIES OF
WESTERN NEW YORK
IE – 409/509
SIX SIGMA QUALITY PROJECT
Department of Industrial And Systems
Engineering

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Founded by three local businessmen: Allen Hamling,
Edward Read and Dr. Harvey Ott, under the auspices of
Grace Methodist Episcopal Church in 1919.
Vision: We will develop a resource base that maximizes the
services we provide in the communities we serve. Our
services will be united by a vocational emphasis and
characterized by relevance, excellence and cost
effectiveness.
Mission: We help individuals and families in our
community achieve a better life through work and
independence.

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HOW DO THEY WORK?
Accept donations from people in the form of
clothes, furniture, electronics, toys, shoes, etc.
Collected goods are put through different quality
checks.
Quality-checked goods are sold at extremely
nominal rates at different Goodwill stores located
in Western New York.
Scrap gathered from non-sellable items – sold by
weight.

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PROBLEMS FACED!
At Goodwill Industries, from floor planning and material
handling to inventory control, there is no standardization.
Some of the problems were:
The process floor layout was not optimally designed, flow
of materials showed high redundancy.
Lack of process standardization in different departments.
Lack of proper documentation and historical data made it
difficult to establish baseline.

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AIM AND OBJECTIVES
Based on these, we decided to work and improve the following:
 Process planning and optimization of wares sorting section.
 Overall plant layout optimization
 Comparing cost of rags and soft toys for selling as waste so
as to release the floor space occupied by the soft toys.
 Sorting time reduction by sort station redesign.

6. D M A I C
As per the Six – Sigma method, we followed the
 D – Define
 M – Measure
 A – Analyze
 I – Improve
 C – Control
rule. The following were our observations and actions.

7. DMAIC TOOLS USED
PHASES SIX SIGMA TOOLS
DEFINE i. Project Selection Matrix
ii. Project Charter
iii. Process Flow Chart
MEASURE i. X- Bar& R-Bar Charts
ii. Spaghetti Chart
ANALYZE i. Why-Why Diagram
ii. Brainstorming
iii. Cause and Effect Chart
IMPROVE i. Optimized Flow Chart
ii. Optimized Shop floor Layout
iii. Cycle Time Reduction
CONTROL i. Guidelines

8. SIPOC
 SIPOC is a high-level picture of the process that depicts
how the given process is servicing the customer.
 Can be seen as a high-level process map.
 Typically used during the define phase of a process
improvement project - helps clearly understand the purpose
and the scope of a process.

10. We could relate to the 8 diseases as follows:
 Overproduction
 Inventory: Due to insufficient of fixed labor force and
specialized workers
 Transportation: The truck scheduling was not under our
control.
 Defects: not measurable due to lack of a standard to relate to.
 Motion (Operations): Material handling problems
 Over-processing
 Waiting: Again the problem of material handling
 Non-Utilization of Resources: Real Estate wastage
EIGHT WASTES

11. WE WORK ON?
 Overproduction
 Inventory: Due to insufficient of fixed labor force and
specialized workers
 Transportation: The truck scheduling was not under our
control.
 Defects: not measurable due to lack of a standard to relate to.
 Motion (Operations): Material handling problems
 Over-processing
 Waiting: Again the problem of material handling
 Non-Utilization of Resources: Real Estate wastage

12. CAUSE AND EFFECT

13. PROCESS FLOW CHART
Current Layout

14. Optimized Flow Chart

15. REQUIREMENT OF NEW
LAYOUT
 Relevant from the process flow diagram.
 Ideal situation of automation is not possible due to budget
limitations.
 The new layout provides an optimal solution within the
given constraints.

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CURRENT PLANT LAYOUT

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OBSERVATIONS
 Staging areas far away from processing areas.
 Distance of Textiles and wares sorting section from entry
and exit is more
 Distance of bales from entry and exit is less
 Waste generation area far from entry and exit door

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REVISED PLANT LAYOUT

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ADVANTAGES
 Textile and wares sorting area closer to entry and exit
doors
 Staging areas are closer to processing area
 Material Handling reduced
 Increasing speed of Flow

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WARES SORTING SECTION

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DEFINE

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CURRENT LAYOUT FOR
WARES SECTION

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MEASURE

24. X- BAR & R-BAR CHARTS
20 19 20 18 17 19
20 19 16 18 22 20
18 20 22 23 19 17
17 21 20 21 23 19
21 19 21 20 16 17
54321
22.5
21.0
19.5
18.0
Sample
SampleMean
__
X=19.4
UCL=21.841
LCL=16.959
54321
10.0
7.5
5.0
2.5
0.0
Sample
SampleRange
_
R=5.05
UCL=10.12
LCL=0
Xbar-R Chart of C1, ..., C6

25. SPAGHETTI DIAGRAM
Original
Spaghetti

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ANALYZE

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 Why-Why?
 Rejection rate
 Brainstorming

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IMPROVE

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REVISED LAYOUT

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CONTROL
LABOR TRAINING ACCORDING TO
GUIDELINES FORMULATED

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TO PROCESSORS:
1) There will be two levels of sorting, light skimming and
thorough sorting.
2) Stand in front of the cage and skim through the items one
by one. This level need not be thorough.
3) Reject most, keep aside what looks really good.
4) If the item looks acceptable place on the table, otherwise,
dump in the dustbin.
5) After the table is full, shift focus on the table to thorough
check all items on table.
6) What is acceptable after this stage, place in the respective
basket.
7) After the cage is empty, push the empty cage aside and
replace it with full cage.

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TO HANDLERS:
There are the following primary tasks for the handlers:
1) Replace empty cages with filled ones
2) Replace full baskets of “electronics”, “books”, “shoes” and
“wares” with empty ones.
3) Replace the full “bins” with empty ones.

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CONCLUSION
 Reduction of material Handling
 Reduction of human effort for handler
 Possibility to free up resource
 Reduction of steps of process

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