summary of 16 Lean Six Sigma improvement projects in manufacturing, bio-manufacturing, supply chain including 2 machine safeguarding . Total savings over $8Mil

1. JULIAN KALAC LEAN SIX SIGMA PROJECTS APRIL 2018
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Examples of Lean Six Sigma projects
1. Lean - Packaging Productivity Improvement ----Consumer Goods Packaging ( $250K/Year savings)
 Converted Batch & Queue into continuous flow production which reduced total cycle time from 3
days to 12hrs/order
 Increased shift capacity by 82%
 Eliminated 3rd shift (14 operators + temps)
 Redesigned the layout into LEAN Flexible CELLS with cross functional trained workers, rotation
schedule to manage bottlenecks and 5S
 Reduced online “hidden rework” costs by 40% and implemented in-process checks to ensure a
“check and balance” system
 Reduced inventory by 30% ($1Mil inventory reduction)
BEFORE LEAN MANUFACTURING
AFTER LEAN IMPLEMENTATION

2. JULIAN KALAC LEAN SIX SIGMA PROJECTS APRIL 2018
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EQUIPMENT RELIABILITY IMPROVEMENT
PROBLEM STATEMENT:
1. Film Shrink Packaging 14% Machine Downtime
2. Poor reliability ɳ < 62%, Average time between failures = 21hrs
OBJECTIVE:
1. Reduce downtime from 14% to < 3%
2. Optimize reliability of machine
IMPROVEMENTS:
1. Conducted FMEA, Root Caused the top 80% machine downtime causes
2. Improved film feed roller y, redesigned new robust cutting knives
3. Implemented condition based preventative maintenance to monitor faults
4. Utilized Weibull distribution to validate reliability
5. Optimized machine process parameters
RESULTS: Reduced downtime from 14% to 2.3 %, increased reliability from ɳ =62% to 97%
Total savings= $740K in machine downtime reduction

3. JULIAN KALAC LEAN SIX SIGMA PROJECTS APRIL 2018
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ARPAC VSM –CURRENT STATE VSM
31% EFFICIECNY 20% Rework + 14% DOWNTIME
Customer Demand
Total Non-Value Add Time = 3HRS
Value Added Time = 173 min (4.5Hrs)
2 operator
C/T = 34 min
C/O = 0.5 hr
Uptime = 81%
PALLETIZER
2 operator
FILM
RACK
C/T = 52 min
C/O = 0.5 hr
Uptime = 86%
1 operator
C/T = 47 min
C/O = 0 hr
Uptime = 78%
OVEN
1 OPERATOR
WRAP
DEFECTS
47 min34 min52 min
1 day 2 day1 day 0.5 days
Production
Order
D
Wk
FILM ROLL
C/T = 40 min
C/O = 0 min
Uptime = 83%
OVERWRAP
CONVEYOR
40
FG
FILM
ROLLS
SHINGLES
VA Time
NVA Time
I
10% SCRAP
20% REWORK
SCRAP
LINEHIGH ROLL DAMAGED
ARPAC VSM –FUTURE STATE VSM
0% Rework - 2% DOWNTIME
Customer Demand
Total Non-Value Add Time = 0.5HRS
Value Added Time = 7Hrs
2 operator
C/T = 34 min
C/O = 0.5 hr
Uptime = 81%
PALLETIZER
2 operator
FILM
RACK
C/T = 52 min
C/O = 0.5 hr
Uptime = 86%
1 operator
C/T = 47 min
C/O = 0 hr
Uptime = 78%
OVEN
1 OPERATOR
47 min34 min52 min
1 day 2 day1 day 0.5 days
Production
Order
D
Wk
FILM ROLL
C/T = 40 min
C/O = 0 min
Uptime = 83%
OVERWRAP
CONVEYOR
40
DC
FILM
ROLLS
SHINGLES
VA Time
NVA Time
CONTINUOUS FLOWKANBAN ROLLS

4. JULIAN KALAC LEAN SIX SIGMA PROJECTS APRIL 2018
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BEFORE
AFTER IMPROVEMENT

5. JULIAN KALAC LEAN SIX SIGMA PROJECTS APRIL 2018
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2. LARGE FORMAT OPERATIONAL TRANSFORMATION - Printing/Packaging - 2015
Problem Statement -
• New Business unit -Large Format “LGF” department running at a loss for 2 years consecutively
• Current capacity 72 shipped items/day, Customer demand =100 items/day
• Currently Average lead time (LT)= 13 days , customer demand = 2-4 days
• New $2Mil equipment underutilized Overall Equipment Efficiency (OEE) = 37%
• Internal Quality Reject Rate = 42%, causing high rework, scrap rate = 33%
Results:
 Increased capacity from 72 to 131 items/day –> (83%)
 Reduced lead time from 13 days to <1 day Implemented NEXT DAY delivery for all orders
 Increased Gross Margin from -$30K to +$35.6K/PD ($70K/month swing) $840K/year
 Transformed Large Format from cost centre into Profit centre and achieved
BEFORE LEAN
AFTER LEAN

6. JULIAN KALAC LEAN SIX SIGMA PROJECTS APRIL 2018
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3. DESIGN FOR SIX SIGMA SWITCHABLE WATER PUMP PULLEY
Problem Statement Current Switchable Water Pump Pulley has design reliability failure rate of 11%,
causing engine overheating and high warranty costs, resulting in over $1.4Mil losses
Objective: Improve design reliability from Identify design failure modes, optimize design yield and validate
design reliability in order to relaunch within 8 months
Results: Successfully improved the design using Design for Six Sigma (DFSS), fixed previous design
failures using Failure Mode Effects Analysis (FMEA) and validated new design robustness using Design
of Experiment (DOE).
The end result: increased overall reliability from 89% to 98.7% over life cycle of the engine resulting
in 60% faster warm-up

7. JULIAN KALAC LEAN SIX SIGMA PROJECTS APRIL 2018
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4. EATS LEAN TRANSFORMATION EATS (Exhaust After Treatment System)
Problem Statement
1. Product/design issues causing 30% internal Quality reject rate , limiting throughput 8 sets/day
2. Unable to meet increased VOLVO demand 60pcs/week, causing shut down Volvo plant 2 days
3. Unable to meet delivery time < 3 days, Currently total cycle time= 4.5 days + rework
BEFORE LEAN TRANSFORMATION
Custom order fitting issues
Backed up orders
HIGH SCRAP and REWORK

8. JULIAN KALAC LEAN SIX SIGMA PROJECTS APRIL 2018
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AFTER LEAN TRANSFORMATION (12 WEEKS)
CUSTOM TOOL CARTS and VISUAL CONTROLS
TRANSFORMATION RESULTS
1. Reduced quality reject rate from 30% down to 3%
2. Reduced total lead time from 4.5 down to < 2 days
3. Reduced total cycle time from 3Hrs to 0.7Hrs/pc
4. TOTAL SAVINGS= $840K/YEAR
CUSTOM ASSEMBLY FIXTURE

9. JULIAN KALAC LEAN SIX SIGMA PROJECTS APRIL 2018
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5. QUALITY IMPROVEMENT CUSTOMER VOLVO---$200,000 SAVINGS
PROBLEM: Missing critical truck component , front-end plate causing customer VOLVO a 2 day shut down
and $100,000 in fines and chargeback
ISSUES: customer requires critical component shipped loose, manual assembly operation not capable of 100%
detecting missing part
SOLUTION: Error proofed assembly process to prevent missing component
RESULTS:
 Added presence sensor for detecting if Missing front-end plate. Connected to shut off valve to prevent
further assembly if Missing front-end plate
 Added visual RED/GREEN light display notification
 Verified over 12 shipments and 5000 pcs shipped problem eliminated
 Cost Avoidance = $ 200,000
ERROR PROOF MANUAL ASSEMBLY PROCESS
POKA YOKE Final Assembly
MISSING PART

10. JULIAN KALAC LEAN SIX SIGMA PROJECTS APRIL 2018
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6. BIO MANUFACTURING BATCH CYCLE TIME REDUCTION — March 2015
Problem:
1. Low Suite utilization 11%, causing capacity constraints with other products
2. Batch cycle time = 5 days per batch, customer Takt Time= 4 days/batch
Objective: Increase utilization and production capacity by 30% without additional capital
RESULTS:
 increased Final Yield by 19%,
 increased suite utilization from 11% to 62%, and
 Reduced total batch processing time from 5 to 3.5 days/batch (42%)
 Total Operational savings = $1.4Mil/year
 Project completion time= 3.5 months

11. JULIAN KALAC LEAN SIX SIGMA PROJECTS APRIL 2018
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7. LEAN LOGISTICS MANUFACTURING (DPM) AND DISTRIBUTION (NT) 2013-2014
Streamlined a complex Canada wide Manufacturing-Supply Chain-Logistics replenishment
operation, which reduced storage/transportation costs by $920K, inventory levels by $2.2Mil (from
$3.4Mil to $1.2Mil). Total Operational savings= $3.1Mil
Problem Statement:
Transportation Logistics from DP Manufacturing to NT Distribution centres inefficient. Customer same
day orders and replenishment being picked up from DP Manufacturing delivered to NT Distribution
Centre, then reloaded onto an outbound carrier resulting in either late deliveries, lost shipments or
delivered to wrong address, resulting in shortages 50%, high WIP levels and excessive transportation
costs.
Improvements:
 Implemented Lean Logistics using 1-step cross-docking distribution from DP to final
destination, which eliminated shortages, reduced delivery time from 4 days to < 1 day
 Integrated Manufacturing-Supply Chain with Warehouse Management System which reduced
total WIP inventory by $2Mil, eliminated 2 carriers, utilized same carrier for Inbound/Outbound
 Implemented Advanced shipping notice (ASN) which enabled Synchronized inbound delivery with
outbound shipments, bar code tracking with shipment RFID chips from supplier
NT DISTRIBUTION CENTERS
DP PRE-PAID CUSTOMERS

12. JULIAN KALAC LEAN SIX SIGMA PROJECTS APRIL 2018
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8. FCI AUTOMOTIVE – QS9001/ISO14000 2000-2004
NEW PROGRAM LAUNCH
 Successfully managed a $22M USD FORD/TRW new ABS/VSC program for 2005 FORD Windstar
minivan, from Design to full PPAP launch on-time & within budget.
 Took over a complex FORD program in jeopardy of being lost, gained the trust and credibility of
FORD/TRW Program managers and successfully PPAP launched the program on-time
 Successfully improved a previously strained customer relationship with honesty, integrity trust
 Developed a mandrel prototype concept for insert moulding 52 connector pins, 4 power blades, and 4
bushings for the Automatic Breaking systems ABS & Vehicle System Control VSC CONNECTORS
 Developed & managed all APQP & PPAP documentation including: Design reviews, PFMEA DVP&R,
SPC, Control Plans, SOP, and production tooling design
 Developed automation specifications, RFQ, vendor selection, managed the design, build & installation of
the custom full-automated assembly line Total budget for automation worth over $2.3M USD
ABS & VCS Connector module

13. JULIAN KALAC LEAN SIX SIGMA PROJECTS APRIL 2018
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9. INJECTION MOULD SET-UP REDUCTION PROJECT --($500K/annual savings)
 Problem Statement: 22 injection moulds ranging from 93 weeks new to moulds over 10 years
old), varied in sizes & capacities, had set-up/changeover times from 4-6hrs, resulting over $500K
machine inefficiencies and productivity losses
 Objective: Reduce the set-up time from 6hrs to under 2hrs
 Significant Improvements: over 4.5hrs of Set-Up Time was reduced by the following
 IMPROVEMENTS:
o Implemented SMED principles, 5S SHADOW BOARDS, standardized, Set-Up
o New water manifolds with shorter hoses and different IN/OUT connectors
o Standardized bolt lengths and utilized quick-connect clamps
o Interchangeable inserts and standardized back plates with different hole pattern
o Standardized Mould kits & implemented shadow boards
o Documented SOP and validated set-up/changeover on different shifts
 These improvements resulted in over $500K annual savings
Setup/Changeover Tooling Improvements

14. JULIAN KALAC LEAN SIX SIGMA PROJECTS APRIL 2018
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10. Robot Welding Setup Time Reduction ----Tier 1 Automotive $650K/year savings
PROBLEM STATEMENT
2 station robot weld down 38min between changeovers, 6 changeovers/day = 3.8hrs downtime/day
 Current setup time= 38min
 Standard Time= 15min
 Target setup Time < 5min
IMPROVEMENTS:
 Designed 6 SIGMA modular welding fixtures, with quick connect clamps and eliminated bolts, screws
and
 combined tacking with robot welding into 1 operation
 Implemented SMED external setup and eliminated internal setup time
 Standardized welding fixtures, eliminated bolts, screws and
 implemented , 5S shadow board, tooling push-pin toggle clamps
RESULTS: ZERO SETUP TIME ACHIEVED
Robot 9 SMED SOP=ZERO SETUP TIME
SIDE A CHANGEOVER
step # Operation Est Time (min)
1 PREPARE NEXT WO MATERIAL 4
2 GET NEEDED FIXTURES/TOOLS/CLAMPS 3
3 UNLOAD LAST PARTS FROM SIDE 1 1
4 INSPECT AND TOUCH UP PARTS 2
5 TACK PARTS 2 (EXTERNAL SETUP)
6 TAKE DOWN FIXTURE FROM SIDE 1 4 BEING DONE
7 LOAD PARTS ONTO SIDE 1 1 WHILE ROBOT rUNNING
8 START WELDING SIDE 1 0
TOTAL TIME FOR SETUP= 16
WELD CYCLE STARTED = 8 T SETUP TIME CLOCK STARTS
AFTER 8 MIN
SIDE B CHANGEOVER
EXTERNAL SETUP
7 TAKE DOWN FIXTURE FROM SIDE 2 5 INCLUDED IN
8 LOAD PARTS ONTO SIDE21 1 WELD CYCLE (8MIN)
9 START WELDING SIDE 2 0
TOTAL SETUP TIME SIDE B= 6
TOTAL INTERNAL SETUP TIME= 0
TOTAL EXTERNAL SETUP TIME= 12
OLD SETUP TIME (MIN)= 38
DEC 4 SETUP (MIN) = 0
SETUP TIME IMPROVEMENT (MIN) = -38
WHILE THE ROBOT IS WELDING SIDE B, LOST TIME=0 MIN
GOAL IS TO CHANGE STATION A BEFORE ROBOT FINISHES WELDING SIDE B
DURING WELD CYCLE (8MIN) THE FOLLOWING WAS DONE

15. JULIAN KALAC LEAN SIX SIGMA PROJECTS APRIL 2018
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11. BLACK CLAWSON EXTRUSION LAMINATOR SAFEGUARDING
 PROBLEM STATEMENT: Used Laminator purchased by company without proper
safeguarding and shut down by Ministry of Labour ordering a PSHR by a P.Eng
 OBJECTIVE: Design machine safeguarding to enable Laminator compliance with OHSA
section 851 Industrial Establishments
LAMINATOR BEFORE PSHR
CRITICAL AREAS TO BE GUARDED

16. JULIAN KALAC LEAN SIX SIGMA PROJECTS APRIL 2018
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12. NEW PRODUCT LAUNCH IMPROVEMENT –(Water Pump Bearings)
TIER 1 AUTOMOTIVE SUPPLIER --(TS-16949 REGISTERED)
Problem Statement: On RED LIST due to late deliveries & poor quality to customer STACKPOLE causing
“RUSH” orders and constant panic mode
 1st
Pass Quality Yield machining = 62%, using 100% inspection to sort out defects
 Lack of Process Control, relying on QC Inspector to find defects
 Premature Tool wear causing defects and downtime
Rotary Transfer Machines:
o 16 Station Hydromat CNC
o Buffoli Transfer Machine CNC
o Hydromat - 10 Station
o Hydromat - 12 Station
Other Equipment:
• In-feed and thru-feed grinding equipment
• Durr parts washer
• Full chip and oil recovery systems
• Fully integrated MRP system
Improvements:
1. Developed VSM of current process and reviewed NVA areas
2. Implemented in-process sampling checks based on AQL of 0.4 (99.6% confidence level) using
GO/NO-GO gauges, vernier measurements
3. Set-up and Implemented SPC for in-process checks which allowed operators to monitor trends and
adjust tooling as needed before it’s too late
4. Redesigned tooling for a 16 station CNC HYDROMAT which reduced premature tool wear by 25%
5. Developed & Implemented Preventative Maintenance which reduced downtime by 30%
6. Designed Rough Grinding and Finish Grinding process parameters for machining water pump
bearings achieving surface finishes of 0.1-0.2µm Ra (4-8 µin) consistently
7. Eliminated 100% inspection
8. Validated Testing through Reliability studies and implemented statistical process controls which
reduced leak test failures from 14% to less than 0.5% improved packaging productivity by 32%

17. JULIAN KALAC LEAN SIX SIGMA PROJECTS APRIL 2018
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CAPITAL EQUIPMENT PROJECT EXAMPLES
13. DESIGN FOR SIX SIGMA MANUFACUTING WORK CELL (Total Savings= $840 K)
Noble Fire (June 2012)
 Problem Statement: Production capacity unknown, sales increasing rapidly
 Objective: Determine Current Plant Capacity and Increase production capacity by meet
customer demand
 Project duration < 6 months
 Prepared Engineering report listing all the issues and recommendations
Main Improvements:
o Increased productivity by 28% in less than 2 months
o Designed, tested and validated new NFPA Approved sprinkler head outlets which
reduced field repairs by 95%-over $40K/year
o Reduced Cycle time on an Automated Burn/Weld Machine by 30% resulting in over
$100K/year in increased productivity
o Implemented new BURN/WELD machines which increased production capacity by 80%
and reduced labour costs by over $230K, with a ROI of 78% (Payback= 0.3 years)
o Total Project Savings = $840K

18. JULIAN KALAC LEAN SIX SIGMA PROJECTS APRIL 2018
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14. PROGRESSIVE STAMPING DIE DESIGN --$900K savings
PROBLEM STATEMENT:
 Unable to support Home Depot Demand increased by 30%, requiring 1Mil units/year
 Current capacity = 550,000 pcs/year , High labour cost/pc = $2.28/pc
 2 critical labour intensive BOTTLENECK operations preventing additional capacity
 High Labour cost: band saw cutting ($1.5/pc) + 3 stage forming ($0.78/pc)= $2.28
Objective: Increase capacity from 550K to 1.3Mil without adding cost
IMPROVEMENT Progressive Stamping Die –eliminating 2 labour intensive operations
RESULTS
1. Increased capacity from 550,000 to 1,8Mil units/year (300%)
2. Combined 2 labour intensive operations into 1 progressive die cycle
3. Reduced labour cost by from $2.28 to $0.29/pc =$2
4. Payback period < 1 year, ROI= 27%
5. TOTAL ANNUAL SAVINGS AFTER PAYBACK= $910K/year
2 Operations @ 1 cycle
1 Band Saw 2 Forming with 3 setups

19. JULIAN KALAC LEAN SIX SIGMA PROJECTS APRIL 2018
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15. INJECTION MOULD SET-UP REDUCTION PROJECT --($500K/annual savings)
 Problem Statement: 22 injection moulds ranging from 93 weeks new to moulds over 10 years
old), varied in sizes & capacities, had set-up/changeover times from 4-6hrs, resulting over $500K
machine inefficiencies and productivity losses
 Objective: Reduce the set-up time from 6hrs to under 2hrs
 Significant Improvements: over 4.5hrs of Set-Up Time was reduced by the following
 IMPROVEMENTS:
o Implemented SMED principles, 5S SHADOW BOARDS, standardized, Set-Up
o New water manifolds with shorter hoses and different IN/OUT connectors
o Standardized bolt lengths and utilized quick-connect clamps
o Interchangeable inserts and standardized back plates with different hole pattern
o Standardized Mould kits & implemented shadow boards
o Documented SOP and validated set-up/changeover on different shifts
 These improvements resulted in over $500K annual savings
Quick Setup/Changeover Tooling Improvements

20. JULIAN KALAC LEAN SIX SIGMA PROJECTS APRIL 2018
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16. Noble Fire Production Capacity
Problem Statement: Production capacity unknown, sales increasing rapidly
Objective: Increase production welding capacity by 25% without any new equipment
Project duration < 4 months
Main Improvements:
o Increased productivity by 28% in less than 2 months
o Designed, tested and validated new NFPA Approved sprinkler head outlets which reduced
field repairs by 95%- over $40K/year
o Reduced Cycle time on an Automated Burn/Weld Machine by 30% resulting in over
$100K/year in increased productivity
o Developed a plan that would increase production capacity by 80% and reduce OT costs by over
$230K, with a ROI of 78% (Payback= 0.3 years)
o Total Project Savings = $840K
OLD OUTLETS NEW OUTLETS

21. JULIAN KALAC LEAN SIX SIGMA IN FABRICATION 1-May-18
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17.PLASTIC FILM WRAP UNWINDER SAFEGUARDING
BEFORE SAFEGUARDING
AFTER SAFEGUARDING