Managers Guide to Continuous Improvement

How to Use This Reference Guide

Alcan’s success in the global marketplace depends as much on big, innovativeideas as it does on the smallest details.

This Reference Guide explains the common language of ContinuousImprovement (CI), our tool for creating standard work, achieving operationalexcellence, serving our customers better and becoming more competitive.

CI creates a system for operational excellence because it:• Focuses on our customers• Empowers our employees• Provides tools and resources• Helps prioritize opportunities• Finds solutions based on root causes• Builds sustainable results• Uses a structured and disciplined process• Offers the ability to leverage success across the organization and accelerate

improvement

This CI Reference Guide details the vision for Alcan Inc. as well as Alcan FoodPackaging Americas and its operations. It defines key CI terms and explains toolsthat speed the improvement process and help measure needs as well as progress.

Use it to focus department resources in ways that elate customers, streamlineprocesses and improve performance. If you can make CI a way of life and helpthose who work with you do the same, Alcan can unleash the power of theprocess. The rewards are a delighted customer, reduced waste, fewer variations inour processes and a sense of pride in a job well done.

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C O N T I N U O U S I M P R O V E M E N T R E F E R E N C E G U I D E

© 2006 ALCAN – George Group Curriculum

This ALCAN – George Group Continuous Improvement training material is for internal use only. It contains ALCANproprietary information which is restricted to ALCAN employees.

This material is intended for discussion and use only within ALCAN Group companies as well as customers andsuppliers only for Alcan project purposes.

Access to, use or copying by non-ALCAN employees in any form, is prohibited.

ContentsPart I – Aligning our Efforts.....................................................................................1

Our Vision and Who We Are ...................................................................................1AIMS and Where We Are Going..............................................................................3

Part II – Coordinating Our Efforts Through Policy Deployment.........................5Principles...................................................................................................................5The Starting Point ....................................................................................................6Strategic and Operating Agendas ............................................................................6Linking Our Vision with Specific Goals..................................................................7Creating Timetables for Realizing Our Vision........................................................9Primary Tool is the X-Matrix ................................................................................10Tools for Charting and Tracking Actions ..............................................................12

Part III – Putting Three Key CI Components to Work.........................................15The Continuous Improvement Umbrella .............................................................15CI Policy for Food Packaging Americas ................................................................18

Component One: Manufacturing Excellence Basics (CI Roadmaps) ..........19Priorities, Objectives and Goals .....................................................................19Why it Works...................................................................................................19Methodology ...................................................................................................20Tools.................................................................................................................21

Component Two: Lean Six Sigma ....................................................................25Priorities, Objectives and Goals .....................................................................25Why it Works...................................................................................................25Four Keys to Success .......................................................................................26Tools.................................................................................................................33Methodology (DMAIC: Define, Measure, Analyze, Improve, Control) ......35Validation Step ................................................................................................54Gate Reviews....................................................................................................55Roles.................................................................................................................57Importance of Sponsors .................................................................................60Certification Requirements ............................................................................63

Component Three: Best Practice Networks ...................................................65Priorities, Objectives and Goals .....................................................................65What is a Best Practice? ..................................................................................66Why They Work ..............................................................................................66Methodology ...................................................................................................67Tools.................................................................................................................70Team Creation Phases .....................................................................................72

Part IV – Tracking Our Success..............................................................................75Logging In ...............................................................................................................75Finding Best Practices ............................................................................................79Inputting a New LSS Project..................................................................................80Most Frequently Asked Questions.........................................................................84

Glossary ..................................................................................................................87Index.........................................................................................................................97

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Part I: Aligning Our Efforts

Our Vision and Who We AreAlcan Inc.

Alcan is a multinational, market-driven company and aglobal leader in aluminum and packaging as well asaluminum recycling. With world-class operations inprimary aluminum, fabricated aluminum, flexible andspecialty packaging, aerospace applications, bauxitemining and alumina processing, today’s Alcan is wellpositioned to meet and exceed its customers’ needs forinnovative solutions and service. As of 2006, Alcanemploys 65,000 people and has 430 operating facilitiesin 59 countries and regions.

Since 2000, Alcan has made numerous acquisitions inthe packaging sector including Pechiney, the globalaluminum and packaging producer based in France. Inaddition to an increased capacity to serve customersworldwide, we also benefit from enhanced scale, astrengthened market position and complimentaryindustry-leading technologies and technologicalresources. We enjoy enhanced opportunities for growth,especially in the aerospace and packaging markets.

Alcan’s governing objective is to be ranked in the topquartile of companies. In order to meet this goal thecorporation must:

• Grow operating earnings per share • Create free cash flow to facilitate investment in

growth• Create Economic Value Added (EVA) efforts for the

company

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Bauxite and Alumina

Primary Metal – 34%

Engineered Products – 30%

Packaging – 29%

Bauxite and Alumina – 7%

34%

30%

29%

7%2005 Revenue by Sector

Engineered Products

Primary Metal

Packaging

2

Alcan Packaging

Alcan Packaging is one of Alcan’s four business groups (as of2006). It represents:

• Approximately 144 facilities in 33 countries worldwide• US$ 6 billion in annual sales• More than 31,100 employees• 29% of Alcan, Inc. revenue

Alcan Packaging is dedicated to providing customers withsolutions that will enhance their products and brands bycapitalizing on our expertise and leadership positions inpackaging. We are acknowledged as a global packaging leader inFood Flexible, Pharmaceutical and Beauty and hold a pre-eminent position in the worldwide supply of Tobacco cartons.Alcan Packaging’s improved ability to serve multinationalcustomers and its multi-market capabilities constitute a strongplatform for growth.

We operate in a dynamic and intensely competitive globalindustry. Customers place increasingly steep demands on theirpackaging partners. They expect quick turnarounds, superiorservice and flawless product quality.

To achieve our corporate goals and remain a leader in ourindustry, Alcan Packaging must:

• Adapt the organization to market needs • Accelerate innovation of new products and technologies as

well as business service models• Leverage experience, offer a large portfolio of technologies

and spread geographically to improve our customeroffering

• Use a disciplined investment policy to target key profitablegrowth segments

• Operate at peak efficiency and ensure that we share BestPractices across our entire system

Alcan uses a standard methodology called the Alcan IntegratedManagement System (AIMS) to build on our operational excellence, new productpipeline and market focus.

This management system allows us to focus our energies on market segments andgeographies that offer the highest potential, fit our capabilities and provide anavenue for strong, continued and profitable growth. In short, Alcan Packaging iscommitted to becoming a world-class organization using AIMS as a standard tomanage improvement.


Food Flexible

Pharmaceutical

Beauty

Tobacco

3

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AIMS and Where We Are Going

Alcan Integrated Management System (AIMS)

AIMS provides a balanced framework to help us reach our goals. It aligns effortswithin and between business groups for maximum effect and value, and it hasfour major pillars: Environment, Health and Safety (EHS) FIRST, Value-BasedManagement, Continuous Improvement and Alcan’s People Advantage.

AIMS Components:

Environment, Health and Safety (EHS) FIRST introduces common standards andprocedures to create a mindset for achieving excellence in Alcan’s performance inenvironment, health and safety. This benefits our employees and the communitiesin which we operate. EHS FIRST represents a commitment from each employeeand from all levels of Alcan to improve through increased awareness, knowledgesharing and Best Practice application.

Value-Based Management is the basis for all strategic investment decisions andvalue-generating initiatives worldwide at Alcan. It uses rigorous financialdiscipline and allows each business group to identify Economic Value Added(EVA) projects in order to capitalize on opportunities and make the best use of allavailable resources. As Alcan’s governing objective, Value-Based Managementidentifies our priorities.

EHS FIRST

ContinuousImprovement

Value-BasedManagement

Alcan’s PeopleAdvantage

Alcan Integrated Management System

4

Continuous Improvement (CI) aims to maximize opportunities by making us morecompetitive and efficient. Our CI program provides a full range of tools so we canselect the most appropriate improvement technique for each situation. Muchmore than a cost-reduction program, CI paves the way to world-class status. Itembodies a philosophy that drives our daily process management activities. UsingCI, we can produce higher-quality products more quickly. If Value-BasedManagement shows us what we need to do to meet our financial objectives, CIshows us how we will make it happen.

Alcan’s People Advantage is a key factor on which Alcan differentiates itself. Thisgoes above and beyond traditional talent management. This pillar reflects howalignment, capabilities and engagement drive overall workforce performance andbuild a high-performance organization.

• Alignment is the extent to which employees are connected or have a line ofsight to the strategy.

• Capabilities capture the extent to which the organization matches talent,information and resources with the business strategy.

• Engagement is the extent to which the employees are committed to theorganization.


Part II: Coordinating Our Efforts through Policy Deployment

Policy Deployment

Policy Deployment is a disciplined methodology we use to distribute a strategicplan throughout our organization. It translates strategic intent into the requiredday-to-day behavior, converting the vague generalities of long-term strategies intorealistic annual initiatives upon which our organization can act. PolicyDeployment also translates annual corporate objectives into coordinated,quantitative contributions at the local level.

Policy Deployment: Principles

• Align our organizational goals with changes in the environment• Focus on identifying vital strategic gaps• Work with others to develop plans to close these gaps• Specify methods and measures to achieve strategic objectives• Highlight cause and effect linkages among local plans• Continuously improve the strategic planning process

At each level, Milestones, Action Plans and Key Performance Indicators (KPIs) aredeveloped to keep us focused on how the business is performing (see pages 12-14for additional details on these tools). Think of KPIs as a car dashboard. Indicatorlights on the dashboard alert us if we are running low on gas or driving too slowso we can make adjustments based on that information. Just like these dashboardlights, KPIs help us monitor a situation and deliver the heads-up we need to makechanges or corrections.

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Vision

Strategic Agenda

Operating Agenda

Annual Initiatives

Business Processes Support Groups

Business Unit Business Unit Business Unit Business Unit

Milestones

Action Plans

at each level

KPIs

Sector Policy Deployment

Policy Deployment: The Starting Point

Alcan efforts to implement CI initiatives begin with Policy Deployment. After wehave assessed the current state of our business, we can then apply PolicyDeployment methodology to develop a vision of the most desirable future state.This new vision describes what we need to do to realize the future state. In short,Policy Deployment helps us convert visions into a disciplined methodology thatwill help us create, distribute and implement a strategic plan throughout ourorganization.

Policy Deployment: Strategic & Operating Agendas

Each business unit must do its share to help Alcan realize its vision. To do so, weneed a forward-looking plan that translates long-term strategy to processimprovements, projects and yearly business unit goals. The Strategic Agenda isused to align the organization with these ambitious strategies. With the StrategicAgenda in hand, each business unit develops its own Operating Agenda.

An Operating Agenda summarizes what the business unit has to do in the long andshort term to fulfill the company’s business goals. Because it lists performanceinitiatives the business unit will undertake to meet its commitments, it helps usmanagers develop an economic understanding of Value-Based Managementmethodologies and potential financial benefits.

At the sector level, the Operating Agenda is still very general, listed, for example,as “improve EHS 5%” or “Optimize Plant X.” We managers must establish specificprojects and initiatives in our Operating Agendas to drive improvement. CI is apowerful system for generating value at this stage of planning and goal setting.

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CURRENTREALITY

ALIGNEDGOAL

Fuzzy Future State

Perceived Current State

Many individualperceptions

Group clarity

Realizing Our Vision

Policy Deployment: Linking Our Vision with Specific Goals

After Operating Agendas and Strategic Agendas have been developed throughreview and prioritizing vital strategic gaps, we managers need to establishconcrete improvement goals. Vision and objectives must be reflected in and relateto annual and daily activities. Policy Deployment ensures everything we do on adaily basis and every performance goal in our annual initiatives links with ourbusiness’ long-term vision and goals.

Policy Deployment at the Sector Level

At the sector level, policies are very general, but become more specific as theydeploy through support groups. These groups link how they will support thebusiness and meet long-term or annual objectives. Support groups such asmarketing and purchasing must use Policy Deployment — just as manufacturinggroups do — to ensure universal goal alignment and eliminate duplication (seeprior page 5 for graphical representation of sector deployment).

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1. Plant X Optimization

2. Plant Y Expansion

3. Partial closure of Plant Z and Harvest

4. Profitable extension of participation in Market X

5. EHS First Implementation

40

450

100

40

na

Initiatives

Key BU Decision PointRequest for Capital from ExComExpenditure of Capital

ActionTarget Competition

Proposed Timing and Milestones

20031 2 3 4

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20061 2 3 4

20071 2 3 4

Capex($M)

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200

75

50

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Strategic Agenda

The Operating Agenda is a summary of the initiatives the business undertakes to deliver the performance to which it has committed.

Illustrative Operating Agenda

Agenda

Output fromMaxVal

(“the what”)

Input intoCI

(“the how”)

Management

Identifies high-value, at-stake strategic issues and opportunities that may make their way onto the operating agenda as they are resolved into initiatives

The Operating Agenda

Policy Deployment at the Business Unit Level

At the business unit level, just as in the sector level, each support group alignswith the Corporate Vision. Policy Deployment, Milestones, Action Plans and KPIsare developed to align the Business Unit Vision. At the business unit level, projectsand initiatives are completed across the business unit globally.

Policy Deployment at the Manufacturing Plant

At the plant level, the same process occurs that occurs at the business unit level.Here, however, Policy Deployment involves individuals and specific improvementprojects. Teams drill down and link requirements with action that is aligned withthe goals of the entire organization.

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Vision

Strategic Agenda

Operating Agenda

Annual Initiatives

Sales &Marketing Finance Human

ResourcesManufacturing

Plants

Milestones

Action Plans

KPIs

at each level

Business Unit Policy Deployment

Plant Annual Initiatives

Managers / Departments

Supervisors / Machine Centers

Teams / Projects

Waste Speed Quality Lean

Milestones

Action Plans

KPIs

at each level

Plant Level Policy Deployment

Policy Deployment: Creating Timetables for Realizing Our Vision

Policy Deployment translates strategic intent into required day-to-day behaviorand turns broad, long-term strategies into realistic annual initiatives upon whichour organization can act. It plays an essential role because it translates annualcorporate objectives into coordinated, quantitative local contributions managedby a timetable.

We create many integrated goals to help Alcan and its businesses succeed. Theseinclude:

Long-Term Strategies:

Long-term strategies form a bridge between our organization’s current situationand its long-term vision. They describe the challenges, opportunities andpriorities for our organization over the next several years. These strategies specifyhow the organization will effectively:

• Meet changing requirements• Distinguish the organization from its likely competitors• Manage internal strengths and weakness

Mid-Term (3- 5 Year) Strategies:

Mid-term strategies map a three-to-five-year journey toward the company visionand align the team with top annual initiatives. They specify vital strategic gapsthat must be closed within three to five years to ensure a strategic position. Thesestrategies exist to:

• Identify one, two or three breakthrough objectives that require multi-yeareffort on the part of the organization

• Determine the preliminary responsibilities and annual sequencing of keytasks to achieve these objectives

• Achieve consensus that the selected items are priorities and then link theseitems to daily management activities

High-Level Annual Initiatives:

Annual initiatives create focus for mid-term goals and make them specific andmeasurable. They specify competencies on which employees must focus in thenext 12 months so as to make dramatic inroads toward five-year objectives.

After annual initiatives are established, actions for the year are linked to them anddeployed throughout the organization.

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Policy Deployment: Primary Tool is the X-Matrix

The X-Matrix document is key to putting CI into action. This CI blueprintoutlines everything we want to accomplish in order to be profitable in ourbusiness. It illustrates how we will achieve our objectives and who will beresponsible for specific activities and tasks. It helps us align ourselves with thecorporate objectives and vision. In short, it helps people in charge organize andintegrate what people who report to them do.

While specific actions included in the X-Matrix differ from facility to facility andbusiness unit to business unit, each matrix contains the following:

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Top Level Matrix

Sector

4th Level Matrix

Manager

3rd Level Matrix

Plant

2nd Level Matrix

Business Unit

Example of

X-Matrix Drill Down

A – Achieve Manufacturing SavingsB – Material Waste Reduction FocusC – Waste Initiatives for Manufacturing Plants (All Plants)D – Plant Waste Reduction by 20%E – Waste Project • Extruding • SlittingF – Reduce Waste 20% (Line A+D) Reduce Waste 15% (Line B)

A

C E

F

B D

“Deploy” Annual Objectives and Initiatives

Top

Annual Initiatives

Left Side

3-5 yr. Objectives

High Level AnnualInitiatives

Right Side

Key PerformanceIndicators (KPIs)

Far Right Side

Resources

X-Matrix Format for Policy Deployment

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Example of X-Matrix That Documents Goals and Policy Deployment

Once an X-Matrix is developed, managers need to direct individuals who haveagreed to work on these goals so they can develop specific actions or projects tomove forward. One way to generate project ideas to achieve target goals on theX-matrix is through a Project Selection Workshop (see page 33). Major projectinitiatives listed on the X-Matrix are tracked and reviewed with a MilestoneChart, which contains KPIs linked to specific projects, goals and actions. BowlingCharts help present KPI results to date.

Policy Deployment: Tools for Charting and Tracking Actions

CI tools such as Milestone Charts, Action Plans displayed on Action ItemRegisters, Key Performance Indicators and Bowling Charts help us track annualinitiatives with our business unit vision.

Milestone Charts

Milestone charts help project managers lead initiatives because they detail howand when major steps will be completed and who will be responsible for them.They measure progress on plan implementation, so project sponsors review themconstantly. A Functional Focus Group may keep several related initiatives underone umbrella on one Milestone Chart. Each level reports progress to the levelabove. Each key metric or annual initiative from the X-Matrix should have aMilestone Chart.

Action Item Registers

An Action Item Register is a format for an Action Plan that links people to specifictasks and resources related to an improvement project. If actions listed on aMilestone Chart are too broad to contain specific actions for individuals, anAction Item Register can be developed. In addition to a Milestone Chart, each keymetric from the X-Matrix should also have an Action Plan displayed on an ActionItem Register.

Key Performance Indicators (KPIs)

These specific guideposts allow us to determine if our CI action plans are meetingobjectives. Much as dashboard lights signal a driver so he or she can makeadjustments, KPIs can alert us so concerns can be addressed based on urgencyand need.

Throughout our organization, Key Performance Indicators (KPIs) created at onelevel support and are reflected in KPIs developed at the level above. Each level’sKPIs list supporting objectives, and owners need to be named for each measureand for corresponding plans and actions. (In a plant, these measures might relateto plant waste, department waste, machine center waste or waste caused bywrinkles. In a support office, they might relate to business unit sales, sales bymarket, sales by customer, sales by product and sales by specification.) KPIs arelisted in Bowling Charts and tied to annual initiatives.

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Action Items / Deadlines / Responsible Individuals

Accountability &Responsibility

Event Goals & KPI’s

Alignment Next Level Goals

Status

Action Item Register

Diagnostic Action PlansImprovementGoals

Manage theProcess

Measure theImprovement

Top

Annual Initiatives

Next Level Deployment

Milestone ChartsYou will want to develop Action Plans illustrating the milestones for implementation.

Integrated Policy Deployment Tools

ACTUAL$0000Base Material1 $0 $0 $0 $0 $0

P/ABudActualTarget to Improve Jan Feb Mar Apr May

PLAN $0 $0 $0 $0 $0

ACTUAL$0000Direct Material2 $0 $0 $0 $0 $0PLAN $0 $0 $0 $0 $0

ACTUAL$0000Waste3 $0 $0 $0 $0 $0PLAN $0 $0 $0 $0 $0

ACTUAL$0000Reduce Claims4 $0 $0 $0 $0 $0PLAN $0 $0 $0 $0 $0

ACTUAL$0000Roto Make Ready5 $0 $0 $0 $0 $0PLAN $0 $0 $0 $0 $0

ACTUAL$0000Flexo Make Ready6 $0 $0 $0 $0 $0PLAN $0 $0 $0 $0 $0

ACTUAL$0000Run – All Depts.7 $0 $0 $0 $0 $0PLAN $0 $0 $0 $0 $0

ACTUAL$0000Reduce POC/PONC8 $0 $0 $0 $0 $0PLAN $0 $0 $0 $0 $0

ACTUAL$00$00 Maint. Mtls./Op Supplies10 $0 $0 $0 $0 $0PLAN $0 $0 $0 $0 $0

ACTUAL$00$00Service Labor and OT9 $0 $0 $0 $0 $0PLAN $0 $0 $0 $0 $0

X-Matrix

Annual Initiatives

KPI’s from the X-Matrix

Bowling Chart

This tool is used to track the monthlyperformance to the annual initiatives

X-Matrix Bowling Chart Linkage

Every month at a policy deployment meeting, each manager reports onperformance using KPIs. (This is called a “drill down” of KPIs by level). Anyshortfall becomes visible in KPIs at more than one level of the organization. Thisdraws attention to required actions and needed resources.

Three Levels of KPIs

As we cascade objectives throughout our organizations, we should think in termsof using at least three types or levels of KPIs:

Measurable KPIs allow us to measure overall performance of an organization at ahigh level. Managers can review the general health of their organization withMeasurable KPIs.

Manageable KPIs help managers understand specific opportunities within theirarea. They measure local-level contributions to higher-level or Measurable KPIsand help establish local ownership of CI goals.

Actionable KPIs are at the root of an activity and help managers monitor dailyactivities linked to higher-level KPIs. When Actionable KPI goals are met, theylead to improved Manageable and Measurable KPIs.

Bowling Charts

Bowling Charts are the standard way to measure progress and results of specificactions or Lean Six Sigma projects, and they allow managers to review objectives.These offer up-to-date and at-a-glance visual reminders of objectives and goalsoutlined in KPIs, which originated from the X-Matrix.

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ACTUAL$0000Base Material1 $0 $0 $0 $0 $0

P/ABudActualTarget to Improve Jan Feb Mar Apr May

PLAN $0 $0 $0 $0 $0

ACTUAL$0000Direct Material2 $0 $0 $0 $0 $0PLAN $0 $0 $0 $0 $0

ACTUAL$0000Waste3 $0 $0 $0 $0 $0PLAN $0 $0 $0 $0 $0

ACTUAL$0000Reduce Claims4 $0 $0 $0 $0 $0PLAN $0 $0 $0 $0 $0

ACTUAL$0000Roto Make Ready5 $0 $0 $0 $0 $0PLAN $0 $0 $0 $0 $0

ACTUAL$0000Flexo Make Ready6 $0 $0 $0 $0 $0PLAN $0 $0 $0 $0 $0

ACTUAL$0000Run – All Depts.7 $0 $0 $0 $0 $0PLAN $0 $0 $0 $0 $0

ACTUAL$0000Reduce POC/PONC8 $0 $0 $0 $0 $0PLAN $0 $0 $0 $0 $0

ACTUAL$00$00 Maint. Mtls./Op Supplies10 $0 $0 $0 $0 $0PLAN $0 $0 $0 $0 $0

ACTUAL$00$00Service Labor and OT9 $0 $0 $0 $0 $0PLAN $0 $0 $0 $0 $0

Red Cell: Represent KPIs performing worse than target and last year

Yellow Cell: Represent KPI performance better than last year but not to target

Green Cell: Represent KPI performance meeting target

Key Performance Indicators on Bowling Chart Tool

Part III: Putting Three Key CI Components to Work

The Continuous Improvement Umbrella

CI drives business success on an ongoing basis because it uses broad-basedemployee input, clearly defined and measurable goals, and built-in trackingmechanisms. Under this process, every employee in every facet of business (fromdesign to manufacturing to sales and administrative support functions) works tofind ways to maximize opportunities and increase profitability.

The Continuous Improvement Umbrella illustrates how each system relates. Everyday, at any time, we can use one, two or all three CI components found under theCI Umbrella to sharpen our focus, measure our progress and gain newperspective.

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Lean Six SigmaManufacturing Excellence Basics

CI RoadmapsBest Practice

Networks

Project Selection

Project Charters

Sponsors

Black Belts

Green Belts

Yellow Belts

White Belts

Project Tracking• Project Action Plans• ProjX• Monthly Status

DMAIC

LSS Tool Box

Common Language

Required FoundationalElements• Policy Deployment / Improvement Goals• Workplace Organization & Visual Management• Work Standards & Best Practices

Gap Analysis

Priority Focus• Material Waste Reduction• Inventory Management • NEFPM Improvement

Value at stake – EVA $

Action Plans

KPIs

Identify

Select• Solventless Adhesive Lamination• Extrusion Lamination• Inventory Management• Waste Management• Laceration Prevention• Waste Recycling• Press (Roto Print)• Press (Flexo Print)

Adopt• Assign Resources• Team Meetings

Prepare

Deploy

Control

Validate• Best Practice Bowling Chart• Quarterly Self Audits• Rotating Team Audits

Roadmaps• Foundational • Key Manufacturing

• Customer Focus• Cross Functional

Self-audit• Assign Ownership• Action Plans• Quarterly Self Audit

End of year audits

Continuous Improvement Umbrella

Three Components of Continuous Improvement

Continuous Improvement processes consist of three main components.

Component One: Manufacturing Excellence Basics (MEB) or CI Roadmaps

The common language for Alcan Packaging’s business and CI is outlined in theManufacturing Excellence Basics (MEB) or CI Roadmaps methodology. WithMEB, we use fundamental systems to manage and improve our processes; thesesystems are required to ensure success.

MEB and CI Roadmaps help us focus on a directional approach to realizing themost important goals. They also provide structure to carry out our businessplans. CI Roadmaps allow every business, no matter how different, to manage andsustain measured improvement. Alcan Packaging has deemed three FoundationalRoadmap Elements as mandatory priorities for each of its business. They are:

1. Policy Deployment/Improvement Goals2. Workplace Organization/Visual Management3. Work Standards & Best Practices

In addition, each sector must complete an annual Gap Analysis to reveal otherroadmap elements needed to improve the business. Each business groupdetermines the Economic Value Added (EVA) at stake and links specific KeyPerformance Indicators (KPIs) to these high-priority initiatives so progress can bemonitored.

Roadmap Elements help managers decide what to do next to improve ourbusiness. The roadmaps can be visually represented as simple building blocks.These illustrate the importance of creating a strong base from which to build andgrow a business and serve customers. Some roadmaps target manufacturingprocesses, but many are cross functional to help support groups fully integrateand serve our business.

Each business must review performance on a regular basis as a reality check onimprovement. A business unit can use the self-audit tool to review roadmapperformance at any time. Business groups assign managers responsibility forspecific roadmaps in their job descriptions to encourage them to develop actionsand to see that they take ownership in the improvement. At the end of the year, anaudit will gauge year-over-year improvement related to the FoundationalRoadmap Elements.

Component Two: Lean Six Sigma

Once business units know what to improve, we permanently fix issues with Lean Six Sigma (LSS), another component of CI. This problem-solving toolboxstandardizes how employees approach problems. The methods we use to select,define, measure, analyze, improve and control projects are part of the Lean SixSigma toolset.

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Alcan benchmarked similar corporations renowned for beating their competitionand growing their business. We found the best companies use a standard toolset.They also have a system for obtaining successful results and implementingimprovement projects to maximize company value.

Lean Six Sigma methodology maximizes shareholder value by achieving thefastest rate of improvement in customer satisfaction, cost, quality, process speedand invested capital. Lean Six Sigma (LSS) combines two problem-solvingconcepts aimed at profitability. Lean tools focus on reducing the number ofwasteful steps in a process. Six Sigma tools help explain and reduce the variationin processes. Together, Lean and Six Sigma make a very powerful mechanismwhen used properly. These tools need to be used together because Lean strategiescannot, alone, bring a process under statistical control, and Six Sigmamethodologies, by themselves, cannot dramatically improve process speed orreduce invested capital.

The Principal Of Lean Six Sigma states: The activities that cause the customer’scritical-to-quality issues and create the longest time delays in any process offer thegreatest opportunity for improvement in cost, quality and lead time.

Component Three: Best Practice Networks

After project teams come up with solutions, we take advantage of them by sharing the new standard methodology throughout the entire organization.The mechanism we use is called Best Practice Networks.

Alcan has developed a methodology to find “Best Practices” processes within ourbusiness. If a process maximizes value, it may be possible to implement it acrossour company. The Best Practice Network allows managers to be aware of and“shop” for systems proven successful elsewhere in the organization and then toimplement them to benefit our business.

Alcan Packaging is a large organization with many facilities and businessesworldwide. Each business has developed methodologies or processes to improveits market competitiveness by using Manufacturing Excellence Basics and LeanSix Sigma tools. Best Practice Networks make it possible for the entire company toshare benefits from individual project results completed at every level of theorganization. Our size allows us to leverage what we have learned across the entireorganization, which can help us compete.

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Continuous Improvement Policy for Food Packaging Americas

Within Food Packaging Americas, our Governing Objective is to Maximize Valueby doubling our warranted value every five years.

We will do this by:1. Continually improving our processes2. Managing our capital assets3. Realizing profitable selective growth

Our CI Process consists of three main components:• Manufacturing Excellence Basics• Lean Six Sigma • Best Practice Networks

CI will enable us to reach our Governing Objective. By focusing our efforts andresources with this process, we will also meet and exceed Customer Expectations.

Objectives and Goals for Continuous Improvement

Manufacturing Excellence Basics Goals:• Foundational Elements: level 4 rating within three years of implementation• Key Elements for Manufacturing: level 4 rating within three years of

implementation• Key Elements for Functional Areas: level 5 rating at the end of the team’s

existence

Lean Six Sigma Goals:• Reduction of controllable costs of 5% per year• Profitable growth of 10% per year (Including Acquisitions)• Black Belts create value by implementing projects focused on increasing

customer satisfaction and revenue and reducing cost in projects and generalManufacturing savings

Best Practice Networks Goals:• Creation of Best Practice Networks for each of the 8 Manufacturing Processes

by 2008These are:� Solventless Adhesive Lamination� Extrusion Lamination� Inventory Management� Waste Management� Laceration Prevention� Waste Recycling� Press (Roto Print)� Press (Flexo Print)

• Other Cross-functional BP Networks reviewed and identified annually• 100% implementation of adopted Best Practices

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Component One: Manufacturing Excellence Basics (CI Roadmaps)

Manufacturing Excellence Basics: Priorities, Objectives and Goals

Alcan Packaging’s president has named our top three priorities (FoundationalElements) for implementing CI Roadmaps. They include:

1. Policy Deployment/Improvement Goals2. Workplace Organization/Visual management3. Work Standards & Best Practices

Food Packaging Americas CI Objectives and Goals for Manufacturing ExcellenceBasics (CI Roadmaps) are:

• Foundational Elements: Level 4 rating within three years of implementation• Key Elements for Manufacturing: Level 4 rating within three years of

implementation • Key Elements for Functional Areas: Level 5 rating at the end of the team’s

existence

Manufacturing Excellence Basics: Why it Works

Manufacturing Excellence Basics methodology (most often referred to as CIRoadmaps) helps us quantify problems and assign credit to improvements thatare not easily quantifiable. CI Roadmaps can help us recognize what improvementlooks like throughout the organization, and they show us how to improve inphases so that improvement is sustainable. Because CI Roadmaps outline thecommon language of CI, they help direct our work on agreed-upon businessgoals and structure our efforts to carry out business plans. They help usdetermine where to start and how to chart progress.

Just as a mechanic can use a systematic method to improve a car’s performance ormake a repair, CI Roadmaps give us a systematic method for improving our worksystems. And once we, like good mechanics, are trained in diagnostic methods, wehave an efficient system with step-by-step, user-friendly instructions at ourdisposal to help us serve our customers and do our jobs better every day.

In addition, CI Roadmaps:• Are a system that gives teams a way to measure performance on key elements • Help us measure ourselves against world-class performance • Illustrate levels of performance and identify a road for improvement• Start with a self-evaluation to baseline our current performance• Lead to action plans for improvement following the guidelines prescribed in

the roadmap elements • Help track our performance to the action plans• Use KPIs to track our performance along the way• Ensure sustainability with annual audits

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Manufacturing Excellence Basics: Methodology

The CI Roadmaps were developed as a result of benchmarking several othercompanies within and outside our industry. Our CI Roadmaps include five areasof emphasis or Axes aligned with the business group’s values. The 5 Roadmap Axesare:

• Employee Mobilization• Customer Relations• Supply Chain• Manufacturing Systems/Processes• Products & Processes Innovation

Elements are specific, measurable goals for the work group.

Roads are general objectives that support excellence for the group.

An Axis is a grouping of several roads that support the group’s values. Each Axis isdivided into Roads.

CI Roadmaps illustrate five levels of effectiveness for each Foundational RoadmapElement. Each level describes the characteristics that should be present in order toqualify for each level of effectiveness.

Roadmaps use a 1-5 graded ratings system. Incremental improvement is on anall-or-nothing basis. All requirements for the level must be met in order to obtainthat level. When a level 5 is obtained, a business unit is considered “Best in Class”.

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Roadmap Framework

1 2 3 4 5Element

Rated Speed

NEFPM

Change-over

Elements are groupedlogically into Roads

Several roads aregrouped into Axes

Each best practice“element” is presentedas a line in the table

Each element ischaracterized by5 levels described as ashort sentence

Axis: Manufacturing Systems / ProcessesRoad Equipment efficiency

The maturity of elements is described as follows:

Level 1: Basics Basic principles not yet formalized. Progress stages notdefined. No performance indicator.

Level 2: Launch Basics principles defined and known locally. Pilotworkshops launched.

Level 3: Development Pilots workshops have produced results. An extensionplan defined and implemented.

Level 4: Maturity Command of principles and tools displayed. Entireorganization involved in CI process. Best Practices shared.Standards stemming from Best Practices described,validated and audited.

Level 5: Excellence Unit recognized as a reference. Standards applied, auditedand continuously improved.

Manufacturing Excellence Basics: Tools for reviewing processes andmonitoring improvement

CI Roadmaps methodology provides processes to review progress and measuresto monitor process improvement. These tools allow us to focus our efforts, andthey are at the heart of our MEB efforts. They can help us manage and improveour process, but we must apply them to ensure our success. CI Roadmap tools canalso be used to determine the Economic Value Added (EVA) at stake forbusinesses and link specific KPIs to high-priority initiatives in order to bettermonitor execution.

Gap Analysis

Each sector must complete an annual Gap Analysis to reveal other CI RoadmapFoundational Elements that may be needed to improve the business.

Foundational Elements

CI Roadmaps are comprised of basic Foundational Elements that illustrate how abusiness should be run. They can be represented visually as blocks in a BuildingBlock House. They also can be compiled into a CI Roadmaps Index that lists goalsand areas of responsibility (see graphics to follow).

Foundational Elements help managers decide what to do next to improve abusiness once the values most at stake have been determined. While some CIroadmaps relate to manufacturing priorities, others are cross functional in natureand require support group involvement.

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CI Roadmaps Index

Foundational Elements and the functions implementing them can be displayedon a CI Roadmaps Index chart. This Roadmaps Index uses color to correspond withsections of the Building Block House and outlines a road for improvement.

22


Employee M

obilization

Managem

ent System

Diagnostics

Policy Deploym

ent and Im

provement G

oals

Action Plans

Improvem

ent Managem

ent and M

easurement

Work standards and

Best Practice M

anagement

People Developm

ent

Managem

ent Role and Leadership

Skills Development

Training Process

Employee Involvem

ent

Improvem

ent Activities and Suggestions

Workplace O

rganization (5S) &

Visual Managem

ent

Recognition

Color Key

Sector Required Elements

Based on Roadmap Elem

ents and Priorities from 2006

BU Foundational Elements

Manufacturing Elem

entsCross-Functional Elem

entsCustom

er Focus Elements

Customer Relations

New

Business D

evelopment

Identifying Markets

Identifying Customers

Qualification and Ramp-up

Supply Chain

Dem

and and Production Planning

Demand and Resource

Reconciliation

Master Production Schedule

(MPS)

Production Control Activities

Manufacturing

System/Processes

Process Control

Variability Monitoring

Capability Improvem

ent

Material W

aste Reduction

Over-Consumption Reduction

Self-Inspection and Error-Proofing

Products and ProcessesInnovation

Project Managem

ent

Projects Portfolio M

anagement

Processes and Tools

Project Teams

Project Performance

Customer Relationship

Managem

ent

Voice of the Customer

Customer Custom

ization

Customer Retention

Customer BP Sharing

Purchasing andProcurem

ent

Strategy

Organization

Purchasing Value Chain

Supplier Relationship M

anagement

Procurement

Equipment Efficiency

Rated Speed

NEFPM

Measurem

ent and Im

provement

Changeover Time Reduction

New

Process and Technology

Equipment Specification

Design and Manufacturing

Installation and Ramp-up

New

TechnologyQ

uality Requirements

Technical Requirements

Compliant M

anagement

Quality Improvem

ent Plan

Service Requirements

Service Expectations

Delivery Managem

ent

Service Improvem

ent Planand Technical Assistance

Throughput Managem

ent

Throughput Design

Inventory Managem

ent

Information Accuracy

Equipment Reliability

Repair Efficiency

Planned Maintenance

Reliability

Autonomous M

aintenance

Product Introduction

Product Standardizationand Sim

plification

Product Design

Product Launch

Roadmaps Index: Food Packaging Americas

Building Block House

The same CI Roadmap elements listed in the Roadmaps Index on page 22 havebeen prioritized in this Building Block House format. The CI Roadmaps Index andBuilding Block House offer a quick visual reminder of our goals and display howeach goal supports our company priorities.

In the illustration, each block represents a CI Roadmap or a strategy. Each blockat the lower levels supports the “customer focus” blocks depicted in yellow at thetop of the house. Customer focus is our top priority. The blocks at the base of thehouse contain CI Roadmap Foundational Elements. These have to beimplemented before higher roads (or blocks) can be tackled. This chart showshow we prioritize implementing CI projects.

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Based on Roadmap Elements and Priorities from 2006

Voice of theCustomer

ServiceExpectations

CustomerRetention

CustomerBP Sharing

Projects PortfolioManagement

Products StandardsSimplification

ProductLaunch

InventoryManagement

Autonomous Maintenance Planned Maintenance

Quality Improvement Delivery Management

NEFPM MeasureImprovement Rated Speed Waste

ReductionChangeover

Time Reduction

Management Roleand Leadership Recognition

Workplace Organization (5S) &Visual Management

ImprovementActivities and Suggestions

TrainingProcess

Diagnostics Policy DeploymentImprovement Goals

ActionPlans

ImprovementManage / Measure

Work StandardsBest Practices

Environment / Health / Safety Systems

Continuous Improvement

Cust

omer

Focu

sCr

oss

Func

tiona

lKe

yM

anuf

actu

ring

Foun

datio

nal

Roadmap Building Blocks for Food & Specialty Flexibles

Self Audit

A Self Audit begins with an evaluation to create a documented baseline of currentperformance. Next, we create Action Plans for improvement following theguidelines prescribed in the CI Roadmap Foundational Elements. Last, we trackperformance against action plans and then put KPIs in place to track ourperformance along the way. Annual Self Audits are performed to ensuresustainability. Each business must review performance on a regular basis toachieve a reality check on improvement.

The Self-Audit can be used to review a CI Roadmap performance score anytime.Business groups assign managers responsibility for specific roadmaps that fallunder their job descriptions so they can develop actions and take ownership inthe improvement. At the end of the year, an audit is completed to gauge year-over-year improvement to the CI Roadmap Elements.

24


Project on PlannedMaintenance,…

Project on “Critical toQuality”, SPC chart, …

ManagementSystem

0

1

2

3

4

5People Development

Employee Involvement

Quality Requirements

Service Requirements

Demand and Production Planning

Purchasing and Procurement

ProductIntroduction

New Process and Technology

Project Management

Equipment Reliability

Equipment Efficiency

Process ControlThroughput Management

Target Current Projects

Projects on ClaimsReduction (Pareto, action

plan, monitoring)

Self Audit Chart

Component Two: Lean Six Sigma

Lean Six Sigma: Priorities, Objectives and Goals

Food Packaging Americas’ CI Lean Six Sigma Goals are:• Reduction of controllable costs of 5% per year• Profitable growth of 10% per year (including acquisitions)• Black Belts create value by implementing projects focused on increasing

customer satisfaction and revenue and reducing costs in projects and generalmanufacturing savings

Meeting these goals requires us to take every step to successfully complete LeanSix Sigma projects throughout our company.

Lean Six Sigma: Why it Works

The activities that cause the customer’s critical-to-quality (CTQ) issues and create thelongest time delays in any process offer the greatest opportunity for improvement in cost,quality and lead time. That’s the Principle of Lean Six Sigma (LSS), a problem-solving toolbox that can help us standardize how our employees approach problems.

Alcan benchmarked similar corporations renowned for beating their competitionand growing their business. We found that the best companies use a standardtoolset. They also use a system for obtaining successful results and implementingimprovement projects to maximize the company’s value.

We have adopted LSS methodology because it maximizes shareholder value byachieving the fastest rate of improvement in customer satisfaction, cost, quality,process speed and invested capital.

Six Sigma is one of the most widely used quality improvement methods availabletoday. It establishes a new set of roles and procedures inside an organization thatwork continuously to generate results and maximize value. LSS broadens ourcompany’s framework of meeting goals and customers’ needs and helps us flourishin a world where customers expect high quality and fast delivery at minimal cost.

Using Lean Six Sigma in our work areas can:1. Help our company become more profitable by:

a. Focusing on Customer Needsb. Growing Revenuec. Cutting Costsd. Improving Delivery Timee. Reducing Inventory

2. Developing valuable job skillsa. Decision Makingb. Problem Solvingc. Teamwork

3. Make our own job and workplace better by getting rid of waste, savingtime and making our work more meaningful

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Lean Six Sigma: Four Keys to Success

Lean Six Sigma helps us put our energiesinto solving problems that are importantto our company and our customers. Asthis graphic shows, the goal is to DelightCustomers by delivering higher qualityproducts and service in less time. Toachieve this goal we have to ImproveProcesses by reducing variation anddefects that are unacceptable to ourcustomers and focus on how work flowsthrough our processes. Our employeesworking on this project use Teamworkand share ideas to solve the problem.Solution decisions are based on Dataand Facts. All these elements togethercreate real solutions – one element alone is not enough.

Delight Customers

The term “Voice of the Customer” (VOC) helps remind us that we must representthe opinions and needs of all our customers in our decisions about products andservices. Some customers are external, while others, such as the employees insidethe company to whom we hand off work, are internal. For example, ourmanufacturing plants are customers of our Research and Developmentorganization. Whether or not we have contact with external customers, we needto remember they are the ultimate judges of our company’s goods and services,and they affect our company’s profit.

Enhancing Quality:Customers compare our offerings with everything else in the marketplace. Thenthey determine what best fits their needs. That’s the reason Lean Six Sigmaprojects always begin with trying to figure out what customers will focus on asthey compare us to our competitors.

For example, when shopping for a hotel, some customers equate quality with afive-star hotel. Others think quality means a motel that is reasonably-priced, cleanand close to the highway. Quality is defined by what the customer wants.Companies that do the best in the marketplace are the ones that take the time toview everything through their customers’ eyes and deliver what customers want.The biggest challenge for us is to become aware that any decisions we make aboutservice or our products have to start with our customers.

26


Lean SixSigma

DelightCustomers

QUALITY

SPEED

VARIATION

PROCESS

FLOW

TEAMWORK

ImproveProcesses

Data and Facts

Increasing SpeedCustomers want quality (no errors) as well as speed(quick delivery) and low cost (best possible price).When we implement LSS, it shows us we can’t achieveany of these goals alone – they all have to be tackled atthe same time.

LSS provides a standardized problem-solving toolsetthat incorporates a step-by-step plan that leads topredictable results. The combination of Lean and SixSigma is the most powerful engine available forsustaining value creation. Using tools within the LSS framework makes it possiblefor us to be extremely successful when solving problems and implementing high-value-added projects.

LSS combines two problem-solving concepts aimed at profitability.

Lean is a discipline that focuses on process speed and efficiency and offers toolsthat work to reduce the number of wasteful steps in a process. Six Sigma is animprovement method that uses data to identify and eliminate process problems.Its tools help us understand and reduce the variation in processes.

Lean strategies cannot bring a process under statistical control, and Six Sigmamethodologies alone cannot dramatically improve process speed or reduceinvested capital. But combined and used properly, Lean and Six Sigma create avery powerful improvement mechanism.

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Lean SixSigma

DelightCustomers

QUALITY

SPEED

VARIATION

PROCESS

FLOW

TEAMWORK

ImproveProcesses

Data and Facts

• Goal – Reduce waste and increase process speed

• Focus – Identify non value added steps and causes of delay

• Bias – Quick wins and Kaizen events

Lean

Speed+Low Cost

• Goal – Improve performance on Customer CTQs

• Focus – Use DMAIC with TQM tools to eliminate variation

• Method – Management engagement, 1% dedicated as Champions and Black Belts

Six Sigma

Culture+Quality

Lean Speed EnablesSix Sigma Quality

(Faster Cycles of Experimentation/Learning)

Six Sigma Quality EnablesLean Speed

(Fewer Defects MeansLess Time Spent on Rework)

Lean and Six Sigma Concepts

Improve Processes

LSS puts a big emphasis on documenting how workgets done (steps that comprise the process) and givingpeople knowledge and methods they need toconstantly improve that work. Most processimprovement methods either eliminate variation orimprove process flow and speed.

Reducing VariationEverything varies, but the way something varies canhelp us understand what is causing that variation. Thepattern of variation can expose the cause of a problem, especially if we know ourcustomer’s true requirements and how our process variation affects them. Thegreater the variation, the greater the chance we are creating defects for thecustomer. The language of variation gave rise to the term “Six Sigma.” The Greeksymbol “sigma” is used in statistics to stand for the amount of variation in aprocess (process yield), a set of data or anything measured. Understandingvariation and the critical part it plays in satisfying customer needs is at the heartof our CI efforts.

Low sigma numbers mean low yield, and high sigma numbers mean high yield.Yield is the % non-defective parts the customer receives. If a process is rated as “6Sigma” it has a yield of 99.99966%. This represents 3.4 defects per millionopportunities or units produced. To best impact yield, we must focus on reducingboth variation and the number of steps in the process. We use the term Sigma Levelto define the effectiveness of our operation relative to true customer requirements.

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Lean SixSigma

DelightCustomers

QUALITY

SPEED

VARIATION

PROCESS

FLOW

TEAMWORK

ImproveProcesses

Data and Facts

±6σ±5σ±4σ±3σ# of Steps

99.986499.07477.946.2940

99.993299.53688.2925.0820

99.996699.76893.9650.0810

99.997699.83995.73361.637

99.99966%99.976799.379%93.32%1

Source: Six Sigma Research Institute, Motorola University, Motorola, Inc.

Six Sigma Improves Quality of Value Added Steps

Lean Six Sigma Drives Quality, Speed and Cost Simultaneously

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an

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Ad

de

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tep

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Overall Yield vs. Sigma

Six Sigma improves quality, Lean eliminates non-value-added steps in the value stream — BOTH are required to reduce the cost of process complexity.

Sigma Level as it Relates to Yield and Process Steps

Improving Process FlowVariation is one of the most common sources of process problems, but how workmoves through the system (process flow) also must be addressed. The more stepsor complexity in a process, the greater the chance for a mistake and the more timeit takes. Historically it has shown that 85% of problems are built into the way theprocess is designed; only 15% are the fault of an individual.

Teamwork

In today’s business world, we have to work together for maximum gain.

When we gather people from all parts of the process and different departmentsand use data, facts and process knowledge, we can get at the root causes ofproblems faster. Formal Lean Six Sigma teams are just part of the picture. We alsoneed an environment that encourages us to work together every day.

Alcan has trained employees in LSS problem-solving methodologies so they cantrain others to help increase profitability throughout the organization. The mostexperienced trainers, Master Black Belts, train and teach throughout the company.Black Belts are change agents who help facilitate improvement throughout theorganization. Green Belts receive focused training on a toolbox to help them intheir ongoing projects and to provide a resource in quality and Leanimprovement efforts. White Belts and Yellow Belts are trained to understand CIand have a framework to work on day-to-day improvement goals.

Employees throughout the company are learning and using Lean Six Sigmamethodologies to meet CI goals. We don’t have to be a Black Belt to work on aproject. All of us can help identify and tackle needed improvements with the LSStoolsets available to us.

Data and Facts

Data and facts form a true foundation for Lean Six Sigma. Who are ourcustomers and what do they want? How do our processes vary? What defects canwe identify? We need to base our decisions on fact, not guess work.

LSS concepts are also extremely powerful when we use them to improve thequality and speed of transactional processes, including those found in ourmarketing, human resources, finance, sales, order processing and pricingdepartments. LSS projects should occur in these transactional processes becausethey support our manufacturing processes, which, in turn, support ourcustomers. LE

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• Every organization or company has many transactional processes.

• The largest potential financial rewards for companies often lie in improving their transactional processes.

• Even traditional “manufacturing” companies rely heavily on critical transactional processes.

• In addition, many inefficiencies in transactional processes drive follow-on inefficiencies in manufacturing processes.

Transactional Processes offer some of the greatest improvement opportunities.

Plant Overheadand Quality

12%

Direct Labor11%

Material60%

EBIT7%Other Operating

Expense andDepreciation

10%

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Transactional Processes

Why Are Transactional Processes Important?

• Often “customer-facing”• May be the determining factor in whether a customer is satisfied or

dissatisfied• Represent the major cost or overhead component of many organizations• Have traditionally received much less attention than manufacturing

processes and are therefore in much more need of improvement• Represent many of the primary or most critical functions of both

manufacturing and non-manufacturing companies

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Typical Business Process Projects

• Increase Sales• Reduce Lab Lead Time• Reduce New Product Development Lead Time• Reduce Delivery Time and Delivery Time Variability (to Requested Date)• Improve Technical Support Response Time and Deployment• Reduce Purchase Order Lead Time• Improve the Pricing, Quotation and New Business Development Processes• Improve the Quality and Consistency of Services Provided• Improve Response Time for Order Confirmation or Other Customer

Service Tasks• Reduce Recruiting Lead Time• Reduce Employee Turnover• Improve ECN Lead Time• Improve the Product Sampling Process• Ongoing Optimization of the Distribution Network• Reduce Workers Compensation Incidents• Provide Customers With Better Information (Availability, Delivery Status,

Etc.)• Back Office Process Improvement – A/R, A/P, Customer Claims• Improve Management of Price Increases and Contract Changes• Assess and Improve Customer Satisfaction• Optimize Distribution System and Transport Equipment Utilization• Improve Customer or Dealer Network Processes• Lower Costs of Processing Medical Benefits

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Lean Six Sigma: Making Improvement Jumps to Sustain Long-Term Profitability

Traditional day-to-day business improvements are not rapid or far-reachingenough to allow us to maintain competitiveness. LSS projects, on the other hand,help us develop improvement jumps to sustain long-term business profitability.We try to minimize the number of active projects while we maximize theallocation of resources to gain the greatest Benefit versus Effort. If we use all theresources at our disposal to choose projects with the best potential to create bigjumps in productivity and financial return, LSS projects will bring us to newlevels of success.

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“Black Belt” Projects• top-down initiated• across departments & plants

Day-to-Day Improvement• Voice of the Employee initiated• focused area or department • incremental improvements

The CI Model is designed to enable both break-through and incremental improvements.

Time

Imp

rov

em

en

t

$$$’s

Returned

• Minimize the number of active projects• Maximize the allocation of resources (intellectual capital) to the projects with the greatest Benefit/Effort

Pro

jects

Pro

jects

8

7

6

5

4

3

2

1

0 10 20 30 40

Weeks

8

7

6

5

4

3

2

1

0 10 20 30 40

Weeks

Additional potential reduction

of cycle time

Resources Spread:Results Accrue at the end

Resources Focused:Results accrue as projects complete

Faster lead time is achieved through Project Prioritization

CI Model

Lean Six Sigma: Tools to Identify Opportunities and Measure Results

Project Selection Workshop

This tool helps us diagnose process problems or identify improvement projectsthat will help us meet our Operating Agenda. The Project Selection Workshopallows us the chance to review and filter opportunities through differentcategorical groups or lenses. This analysis is usually done in a team environmentin which multiple functional groups provide data, input and ideas. Four lenseshelp us analyze key business measures for potential projects:

• Voice of the Business (VOB) – Data that reflects financial performance andrelated gaps

• Voice of the Customer (VOC) – Data that highlights service, quality andperformance opportunities

• Voice of the Process (VOP) – Data on individual system performance• Voice of the Employee (VOE) – Bottom-up approach for ideas (includes

Environment, Health and Safety and Regulatory projects)

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OperatingAgenda

(from MaxValStrategy

Development)

StrategicAgenda

Others• EHS• Regulatory

ALCANRoadmaps

Process analysis links the business by process (versus functions) and gives perspective on project

Voice ofCustomer

(VoC)

Voice ofProcess(VoP)

Voice ofBusiness

(VoB)

Identifying gaps in meeting customer needs (critical customerrequirements) provides ideas for projects

Performing financial analysis identifies gaps in performance to generate project

Bottoms-up ideasincluding EHS & Regulatory Projects

Voice ofEmployee

(VoE)

ideas

ideas

Long-List ofPotential CI Projects

Sources

Project Selection Workshop

Benefit versus Effort Chart

Our Operating Agenda gives scope to the filtering process, and Alcan CIRoadmaps help quantify strategic gaps. This background helps us review potentialprojects and then prioritize them using a quantifiable method called Benefitversus Effort analysis. With this analysis, we can apply a simple equation forreviewing financial or EHS impact versus the amount of time and expense it willtake to complete the project.

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SCREENING POTENTIAL PROJECTS

Highly DesirableProjects

Identify projectswith highest BENEFITand with least amountof EFFORT

EXAMPLESOF PROJECTS

BENEFIT

EFFORT

Set-up time reduction

EHS issuesWaste reductionProductivity improvement

Least DesirablePotential Projects

Potentially DesirableProjectsUsually require moreanalysis to ensure gooddecision making

“Potentially Quick Hits”KaizenJust Do It — Action Plans

Screening Potential CI Projects

Reading the Chart

Projects in the Red Zone are passed over

Projects in the Yellow

Zone are reviewed to see if resources should be assigned

Projects in the Blue Zone are quick-hit/Kaizen events

Projects in the Green

Zone are lower-value, short-term opportunities – could be Green Belt or Black Belt projects

Projects in the Grey

Zone are higher-value opportunities

300

250

200

150

100

50

0

Benefit

Benefit Effort Matrix — EVA vs. Time

1.0 2.0 3.0 4.0Time

EV

A (

’000)

Effort5.0 6.0 7.0 8.0

1

28

3

6

7

5

4

9

Legend

BB Project GB Project Kaizen/Quick Wins Discuss NO GO

Using the Benefit versus Effort Chart

Lean Six Sigma: Methodology

Define, Measure, Analyze, Improve and Control (DMAIC)

We can use Benefit versus Effort analysis to prioritize potential projects. Onlythose with the highest ratio are accepted. A Green Belt or Black Belt resource maybe assigned to the project to assist us in applying a scientific problem-solvingmethodology. This Define, Measure, Analyze, Improve and Control methodology,DMAIC for short (pronounced duh-MAY-ick), consists of five distinct stages ofproblem solving.

Our structured LSS approach to identifying and choosing projects allows ourplants and functional groups to develop a prioritized hopper of projects to whichresources can be dedicated.

Every organization thinks it has solved problems only to have them reappear.These solutions cannot be sustained for long-term benefit. When using the LSSDMAIC approach, it is important to follow the methodology. If our LSS teamsjump to conclusions aboutroot causes, we mayimplement the incorrectsolution. (LSS teams arededicated to solvingproblems where thesolution is unknown.Installation of equipmentor implementations of anexisting Best Practice areexamples of projects thatdo not fall under the LSSapproach.)

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Prioritized by Management

Team

Assign Projectto Sponsor and BB/GB

SponsorEnsures and

ReviewsProgress

Define Measure Analyze Improve Control

efine project purpose and scopeeasure current performancenalyze causes & confirm with data

mprove by removing variation and non value-added activities

ontrol gains by standardizing

Results are Captured and

Sustained

DMAIC is the projectmanagement framework

ProjectCandidates

DMAI

C

Sponsorensures

deliverables & checkpoints for

each phase

Structured approach of project selection

300

250

200

150

100

50

0

Benefit

1.0 2.0 3.0 4.0Time

EV

A (

’00

0)

Effort5.0 6.0 7.0 8.0

1

28

3

6

7

5

4

9

LSS Approach to Identifying and Choosing Projects

All Possible x’s — Variablesy = f(x1+x2+.....xn)

Critical Input Variables

$ $

100+ Inputs

25-30

8-10

3-6

1-3

1st Hit List

Screened List

Found Critical X’s

Controlling Critical X’s

• Process Maps• Project Charter

• Capability Study• Measurement Study• C&E Matrix

• FMEAs• Multi-Vari Studies

• Design of Experiments (DOE)

• Control Plans

DEFINE

MEASURE

ANALYZE

IMPROVE

CONTROL

y = f(x): Finding the Critical X’s

DMAIC is effective at solving problems because it forces a team to use data to:• Confirm the nature and extent of the problem• Identify true causes of problems• Find solutions that evidence shows are linked to causes• Establish procedure; maintain the solutions even after the project is done

Each phase has requirements the team must fulfill to progress to the next phase. AGate Review (see page 55) must be completed as each phase is completed. Phasesstart out very general but become more specific as the team drills deeper towardthe potential solution.

DMAIC Phases

36


Define the opportunity from bothbusiness and customer perspectives

Search for the key factors (critical X’s) that have the biggest impact on processperformance and determine the root causes

Understand the processand its performance

Develop improvementsolutions for the critical X’s

Implement thesolution and control plan

Critical Enablers

• Opportunity Identification and Project Selection• Project Sponsorship• Tollgate Reviews

Phases of the DMAIC Process

DMAIC: Define PhaseIn this first phase, our objective is to develop a project charter and team mandate.The team is chosen, formalized and then launched. The key is having a focusedscope, a data-driven charter and a well-balanced team with a sponsor dedicated tosolving the issue.

Define Phase Deliverables include:• Determine VOC• Determine VOB• Determine Focus Areas• Develop Project Charter

� Scope� Goals� Key metrics

• Team members• Map the Process (Suppliers, Inputs, Process steps, Outputs, Customers)

This diagram shows how all required Define Phase Deliverables fit together tocreate a complete picture of the work of the team and its goals.

Define Phase Tools

Project Charter

Purpose: The most important step prior to a team getting started is theestablishment of a Project Charter. After the project selection process is completeand a project has been identified as a priority, then the project sponsor will draft aProject Charter. This two-to-three-page document describes what the sponsorwants the team to accomplish. Alcan uses a standard form for this, and every LSSproject must have one.

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Voice of theCustomer

(VOC)

Voice of theBusiness

(VOB)

Focus Areas

Project Charter: Scope, Goals, Metrics, Team

P

Process Map

O CIS

Time Cost GrowthQuality

Define Phase Deliverables

Application: This is initiated just before the project launch, but it is a deliverable ofthe Define Phase. Sponsor and Project Leader work together on it.

Benefits:Aligns the project team, determines scope, and proposes timeline, team members,financials and problems statement to coordinate efforts before the project starts.

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*mandatory sections to be completed by Sponsor

ALCAN Continuous Improvement — Project Charter

Purpose:

The Project Charter purpose is to establish a standardized “contract” between the project sponsor and the project team. The Project Charter defines the problem – it does not solve it. It is a living document that could change over the DMAIC phases and should normally not exceed 3 pages.

Admin DataProject Name: Business Group: please select

Sector/Unit/Value Center:

Site(s): Key area(s) to be improved:

EHS Customer Satisfaction CostQuality Process Speed Capital Employed

Sponsor: Sponsor telephone:

CID: please select CI Champion:

Black Belt: BB telephone: Green Belt:

Business Impact * Q1: Why should we do this project?

Q2a: What is the quantified valuecreation of the project accordingto ALCAN CI financialguidelines expressed in EVA $?

Q2b: What is the range of CAPEX?

Q2c: What is the EHS riskavoidance?

Q3: Which Operating Agenda itemis supported by this project?

Q4: What is the risk that the projectwill not succeed?

• Click here to type in for Q1

• Click here to type in for Q2a

• Click here to type in for Q2b

• Click here to type in for Q2c



Opportunity / Problem Statement * Q1: What is happening (describe in

detail)?

Q2: When did the problem start?

Q3: Where is the problemoccurring?

Q4: What “Pain” are we or ourcustomers experiencing? Orwhat is the magnitude of theproblem?





Project Charter Example

SIPOC (Suppliers, Inputs, Process, Outputs, Customers) Diagram

Purpose: The SIPOC Diagram is a high-level process map. This first step inaddressing customer-related issues takes a process view of how our company goesabout satisfying a particular customer requirement.

SIPOC stands for:Suppliers – individuals or groups who provide whatever is worked on in theprocessInputs – information or material provided for that stepProcess – steps used to do that workOutputs – product, service or information being sent to the customerCustomers – next step in the process or the final (external) customers

Application: A SIPOC Diagram, a Process Map tool or both can be used during theDefine Phase to scope the project.

Benefits:• Helps us understand the relationship between customers, inputs, outputs and

process steps• Helps us understand how the process is measured • Gives an overall glance at the process to help the team better scope the

project

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Input Metrics Process Metrics Output Metrics Measurement System

ViscosityTemperature

Roll RatioRoll Gap

Roll Configuration and Material

TearCoat WeightAppearance

Adhesion

DartScaleVisualInstron

Quality

Adhesives Supplier ViscosityTemperatureRun Speeds

Roll GapRoll Ratio

MixAdhesive

MeteringRoll

TransferRoll

ApplicationRoll

Adhesive Application

Proper Coat WeightProper Appearance

Proper AdhesionProper Tear

CustomerA

Run SpeedMachine Speed

(ft/min and m/min)Coat Weight Scale Speed

Process SpecificationProcess Control

# +/–# lbs/reamCPK

Process VariationProcess Mean

Performance at CustomerBasis Weight

Scale Cost

Suppliers Inputs Process Outputs Customers

SIPOC Diagram Example

Process Map

Purpose: Identifies all the steps in the process, lists key outputs, suppliers,customers and inputs at each step. Some maps may classify inputs and outputs ascontrollable, noise or standard.

Application: A SIPOC Diagram or Process Map should always be done at the firststages of an LSS project.

Benefits: Provides valuable input to Cause & Effects matrix, Failure Modes Effects Analysis,Control Plan, Process Capability studies, Conducting Design of Experiments andunderstanding transactional processes.

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Solventless LaminationProcess Map

Input Variables Legend

Noise (N) — impact output variables but aredifficult or impossible to control

Controllable (C) — can be changed to see theeffect on output variables

Key (K) — critical inputs statistically shown tohave major impact on variability of outputs

Primary substrate (N)Unwind tension (C)Roll orientation (K)Roll O.D. setting (C)Webguide setting (C)Speed (C)

Power setting (K)Intimate contact substrate to backup roll (K)Correct tension (C)Speed (C)

Temperaturecontroller setting (K)

Correct treatmentCorrect tensionPrimary

Treater

Pre-heated substrate

Flat substrateCorrect orientationAlignment w/coating deckCorrect tension

PrimarySubstratePre-heat

PrimaryUnwind

Secondary substrate (N)Unwind tension (C)Roll orientation (K)Roll O.D. setting (C)Webguide setting (C)Speed (C)

Power setting (K)Intimate contact substrate to backup roll (K)Tension setting (C)Speed (C)

Correct treatmentCorrect tensionSecondary

Treater

Flat substrateCorrect orientationAlignment w/coating deckCorrect tension

SecondaryUnwind

Inputs Output Inputs OutputProcess Step Process Step

Process Map Example

DMAIC: Measure PhaseMeasurement helps LSS succeed when other approaches fail. Without data,projects can become short-lived or provide disappointing results.

In this DMAIC phase, we need to establish an accurate baseline measurement todetermine project improvements. Identifying process constraints is key.

Measure Phase Deliverables may include:• Identify the key process

output variable – “Y”• Calculate total Process

Lead Time• Develop Data Collection

Plan• Perform Measurement

System Analysis• Develop Control Charts • Determine Process

Capability• Establish Measurement

Baseline• Identify Quick Improvement

opportunities

Measure Phase ToolsValue Stream Map

Purpose: A Value Stream Map shows the materials and information flow alongwith detailed process information. The goal for the project illustrated in oursample map is to improve lead time. This map (see page 42) highlights areas inwhich operations can be sped up and potential areas where waste exists in theprocess.

Application: Used during the Measure Phase of a project to help us understand thecurrent state of the process and the source of waste.

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Late InvoiceCause Checksheet

CategoryTotals

No Order Form

Customer DataMissing

TaxableQuestion

Order/P.O.Discrepancy

Weekly Total

1

9

2Weeks (01, Month 1)

4

3

6

4

6 25

9

Misfile andOther 6

4

3

3

Data Collection Plan Example

Benefits:• Provides understanding of how the current process works • Communication of the current process• Highlights inefficiencies and waste• Reference document for the team and for discussion• Highlights possible quick wins for process improvements

Measurement System Analysis (MSA)

Purpose: This is a statistical technique used to determine the ability of ameasurement system to measure a process precisely and accurately.

Two sources of variation can occur when measuring process output: part-to-partvariation and measurement system variation.

If measurement system variation is large compared to the part-to-part variation,few conclusions can be drawn.

Application: First, validate the accuracy of the measurement system against aknown standard (if available). Second, validate the precision and discriminationof the measurement system with a Gauge Repeatability and Reproducabilitystudy. If the measurement system is not capable, the baseline data may bemisleading. After passing MSA, process control and capability can now be used todetermine the stability and capability of the process.

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Total Process Lead Time

DistributionAssembly 2Assembly 1Forge Machine

•Raw castings

•Daily schedule

•Forged material

•Daily schedule

•Forgings, bolts, nuts, washers

•Daily schedule

•Assy 1, o-ring, bearing, snap ring

•Daily schedule

Receiving/Warehouse

Customer

I

I I I I1 1 1 1

•Assy 2

•Daily schedule

1

MACHINING & ASSEMBLY

Order, Daily, Fax

CUSTOMERSERVICE

PURCHASING

100 pcs

I100 pcs

I

C/T = 30 Sec

C/O = 30 MinUptime 95%

Batch Size 100

P/T = 20 Sec

C/T = 45 Sec


Batch Size 100

P/T = 35 SecC/T = 60 Sec


Batch Size 100

P/T = 50 SecC/T = 50 Sec


Batch Size 100

P/T = 40 Sec

1

Assembly 1Assembly 1

1000 pcs 5000 pcs 100 pcs 200 pcs

20 sec 50 sec35 sec 40 sec

92.1 hours23.7 hours 1.6 hours 3 hours

Processing time = 145 seconds

Production lead time = 122.3 hrs

1 1 1 11


CUSTOMERSERVICE

PURCHASING

100 pcs

1.8 hours

I I I

I I I I

Work Orders, Daily Release, PaperQuick

Improvement

20,000 pcs/mo

Module=100

1/W

eek

MRP MRPMRP 20,000 pcs/mo

Module=100

Receiving/Warehouse

Customer

Work Orders, Daily Release, Paper

Order, Weekly (5-day), Fax

Forecast, 90/60/30 Day, Fax

SUPPLIER

2/D

ay


Forecast, 6 Month, Fax

Order, Daily, Fax

CUSTOMERSERVICE

PURCHASING

Current State Value Stream Map Example

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Per

cen

t

Part-to-PartReprodRepeatGauge R&R

500

250

0

% Contribution

% Study Var% Process

% Tolerance

Sam

ple

Ran

ge

0.010

0.005

0.000

_R = 0.00341

UCL = 0.00879

LCL = 0

21

Sam

ple

Mea

n

0.43

0.42

0.41

=X = 0.41882

UCL = 0.42232

LCL = 0.41533

21

Part10987654321

0.43

0.42

0.41

Operator21

0.43

0.42

0.41

Part

Ave

rag

e

10 9 8 7 6 5 4 3 2 1

0.43

0.42

0.41

Operator

12

Gauge name: Basis Weight ScaleDate of study: 12-14-04

Reported by: Halden Zimmermann and Brad SchobertTolerance: Misc:

Components of Variation

R Chart by Operator

Xbar Chart by Operator

Response by Part

Response by Operator

Operator * Part Interaction

Operator

Differences

Gauge R&R (ANOVA) for Response

Two-Way ANOVA Table Without Interaction (Poor Gauge R and R result)

Source DF SS MS F P

Part 9 0.0012753 0.0001417 20.1038 0.000Operator 1 0.0000336 0.0000336 4.7670 0.034Repeatability 49 0.0003454 0.0000070Total 59 0.0016543

Gauge R&R %ContributionSource VarComp (of VarComp)

Total Gauge R&R 0.0000079 26.12Repeatability 0.0000070 23.20Reproducibility 0.0000009 2.91

Operator 0.0000009 2.91Part-To-Part 0.0000224 73.88Total Variation 0.0000304 100.00

Study Var %Study Var %Tolerance %ProcessSource StdDev (SD) (6 * SD) (%SV) (SV/Toler) (SV/Proc)

Total Gauge R&R 0.0028167 0.0169000 51.11 1126.67 216.67Repeatability 0.0026549 0.0159294 48.17 1061.96 204.22Reproducibility 0.0009408 0.0056446 17.07 376.31 72.37

Operator 0.0009408 0.0056446 17.07 376.31 72.37Part-To-Part 0.0047373 0.0284239 85.95 1894.93 364.41Total Variation 0.0055114 0.0330686 100.00 2204.57 423.96

Number of Distinct Categories = 2

Gauge Repeatability and Reproducibility Output Example

Greater than 30%

represents poor

R&R. In this case,

operator is the issue

should be 4 or more

Benefits:• Determines if the measurement system can adequately discriminate between

different parts• Identifies the source of the variation in measurements (i.e., operators, testing

methods)

Control Charting or Statistical Process Control (SPC) Tool

Purpose: The concepts of Statistical Process Control (SPC) were initiallydeveloped by Dr. Walter Shewhart of Bell Laboratories in the 1920s and wereexpanded upon by Dr. W. Edwards Deming, who introduced SPC to Japaneseindustry after WWII. After early successful adoption by Japanese firms, StatisticalProcess Control has now been incorporated by organizations around the world asa primary tool to improve product quality by reducing process variation.

Dr. Shewhart identified two sources of process variation. Chance variation isinherent in process and stable over time, and Assignable or Uncontrolled variationis unstable over time. Assignable or Uncontrolled variation is the result of specificevents outside the system. Dr. Deming relabeled chance variation as CommonCause variation and assignable variation as Special Cause variation. Based on thelaws of statistics and probability, Dr. Shewhart and Dr. Deming devised controlcharts to plot data over time and identify both Common Cause variation andSpecial Cause variation.

A Control Chart is a specialized time series plot designed to identify abnormalpatterns of variability in a process. The X-bar & R-charts are probably the mostcommonly used control charts.

Application: Use with time-ordered sample data to identify an important qualitycharacteristic.

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X-bar/R-Chart for Output

Ran

ges

Mean

s

X = 69.80

R = 10.96

3.0SL = 76.12

–3.0SL = 63.48

3.0SL = 23.17

–3.0SL = 0.000

3020100Subgroup

6

77

72

67

62

20

10

0

Control Chart Example

Benefits:Control Charts can help answer questions such as:

• Is my process (machine/operator) stable?• Is the process average in control?• Does the process average remain consistent between subgroups?• What is the variability in the manufacturing process?

Process Capability

Purpose: Process Capability (Cp, Cpk) analysis is used to determine how capable aprocess is of producing parts that are on target and/or within specification limits.It is measured using these two Process Capability ratios:

Application: Use Process Capability (Cpk, Cp) analysis after a process is verified tobe in control. Use it to understand the ability of a process to stay within a certainspecification. This is best done in the Measure Phase as a baseline for the project.

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Equations for ProcessCapability

1.201.080.960.840.720.60

LSL USLProcess Data

Sample N 40StDev(Within) 0.132297StDev(Overall) 0.13301

LSL 0.65Target *USL 1.1Sample Mean 0.9605

Potential (Within) Capability

CCpk 0.57

Overall Capability

Pp 0.56PPL 0.78PPU 0.35Ppk 0.35

Cp 0.57

Cpm *

CPL 0.78CPU 0.35Cpk 0.35

Observed PerformancePPM < LSL 25000.00PPM > USL 100000.00PPM Total 125000.00

Exp. Within PerformancePPM < LSL 9462.73PPM > USL 145839.06PPM Total 155301.79

Exp. Overall PerformancePPM < LSL 9787.27PPM > USL 147137.28PPM Total 156924.55

WithinOverall

Process Capability of Boscobel

Process Capability Analysis Example

Benefits:Use Process Capability analysis to answer questions such as:

• What is the variability in the manufacturing process?• Is this new equipment performing as expected?• Which vendor or process should I use?• What is the predicted process performance?• What process modifications would be helpful?• What tolerances should be set along the way so that the final product meets

specifications?

DMAIC: Analyze PhaseThis phase makes sense of all the information and data collected in the MeasurePhase and uses that data to confirm the source of delays, waste and poor quality.

Here, the challenge is to stick to the data and identify the few critical Cause-and-Effect relationships that explain how most of the key process input variables (X’sor root causes of failures) and key process output variables (Y’s) relate to oneanother.

Analyze Phase Deliverables typically include:• Identify the key process input

variables – “x’s”• Use LSS tools to perform root cause

analysis to identify Critical “X’s”• Cause & Effect matrix• Failure Modes and Effect Analysis – FMEA• Analysis of Variance – ANOVA • Main Effects charts• Regression analysis

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Critical “X’s”

Trivial Many X’s

X X X X X

X X X

Analyze Phase Tools

Cause and Effects Matrix

Purpose: This tool is used to understand and satisfy customer needs. It does so bytransferring often vague and general requirements into process parameters. Thetool helps the team develop an understanding of the greatest sources of variationwithin the process and pinpoints the critical few key process input variables(KPIVs) that must be addressed to improve the key process output variables(KPOVs).

• A cause and effect matrix relates process steps to inputs and correlates toprocess outputs.

• Customer requirements are ranked by order of importance, and then inputsand outputs are rated by their interaction impact.

• It relates the key inputs to the key outputs (customer requirements) using theprocess map as the primary source.

Application: It should be used to prioritize process input variables (X’s). This isusually done with large processes prior to performing an FMEA. It helps narrowthe choice of FMEA project area.

Benefits:• Obtain Pareto of key process inputs to be evaluated in: FMEA, Control Plan

and Process Capability.• Structured way to understand and satisfy customer’s needs.

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3 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

7 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Customer: End User, Inner Plant (Slitter, etc.), Inter plant, Extrusion Depts

3 3 2 3 2 3 3 2 2 2 1 2 1 2 3 1 3 3 3 3

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Process Step Process Input1 Unwind Substrate 1 1 1 1 1 1 3 3 3 3 1 1 1 1 3 3 3 3 7 3

Unwind Roll Size 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 7 1 7 3Unwind Unwind tension 1 1 1 1 1 1 1 7 1 1 7 3 1 1 7 3 1 1 1 1Unwind Print quality 1 1 1 1 1 1 7 1 1 7 1 1 1 1 1 1 1 1 3 3Unwind Splice method 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 7 1 3 3Unwind Speed match 1 1 1 1 1 1 1 3 1 1 1 1 1 1 7 1 1 1 1 3Unwind Edge guide 1 1 1 1 1 1 1 1 1 1 3 1 1 3 1 1 1 3 3 3Unwind Splice marking 1 1 1 3 1 1 1 1 1 1 1 1 1 1 1 1 1 7 1 1Unwind Type of tape 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 7 1 1 3Unwind Web cutting mechanism 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 7 1 1 3Unwind Roll structure 1 1 1 1 1 1 1 1 3 1 1 1 1 1 3 1 3 3 1 1Unwind Roll wind 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 7 1 1 1Unwind Surface tension 1 1 1 7 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1Unwind Unwind direction 1 3 1 3 1 1 1 1 1 1 1 1 1 1 1 1 3 1 1 1Unwind Splice tape location 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 3 3 1 1Unwind Film gage 1 1 1 1 3 1 1 3 1 1 3 1 1 1 1 1 1 1 1 1Unwind Orientation 1 1 1 3 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1Unwind Web center 1 1 1 1 1 1 1 1 1 1 3 1 1 1 1 1 1 1 1 1Unwind Brake tension 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

4 Treater Power setting (watts density) 3 3 1 7 1 1 3 1 1 1 1 1 1 1 1 1 1 1 3 1Treater Electrode gap 3 3 1 7 1 1 3 1 1 1 1 1 1 1 1 1 1 1 3 1Treater Correct set-up 3 3 1 7 1 1 3 1 1 1 1 1 1 1 1 1 1 1 3 1Treater Treater roll condition 3 3 1 3 1 1 3 1 1 1 1 1 1 1 1 1 1 1 3 1Treater Mode of operation (Manual) 1 3 1 3 1 1 1 1 1 1 1 1 1 1 1 1 3 1 3 1Treater Proper exhaust function 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 7Treater Electrodes operational 1 1 1 3 1 1 1 1 1 1 1 1 1 1 1 1 1 1 3 1Treater Unwind output 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Rating of Importance to Customer1 = Low 2 = Medium 3 = High

Cause and Effects Matrix (C and E Matrix) Example

Fishbone Diagram and Five (5) Why Analysis

Purpose: Several logical names refer to the figure shown here: Ishikawa Diagram,Cause and Effect Diagram, Fishbone Diagram and Root Cause Analysis. K. Ishikawainvented the tool and first used the technique in the 1960s. Cause and Effect alsoaptly describes the tool because it captures the causes of a particular effect and therelationships between cause and effect. Fishbone describes how the diagram lookson paper. Lastly, it is used to find root causes of problems. The diagram highlightssix categorical groups in which the possible root cause of a problem may occur.The 6 “Ms” are Man, Method, Machine, Material, Measurement and MotherNature (Environment).

A completed diagram can help any team evaluate which items on the chart havethe highest likelihood of contributing the most to the root cause of a failure. Theteam should pick three high-potential items from the diagram and then conduct aFive (5) Why Analysis, drilling further into the root cause of the problem.

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Effect: Too many price adjustments at

check-out

Machine / Measurement Method

Material / Mother Man

Updates

Not enough staffingduring peak times

Discovery ofdifferent discountrates occurs toolate in process Computer screens

Billing processnot accurate

Too many “jumps” between screens needed to get simple tasks done Master customer

discount table notup-to-date

Incomplete Training on common

complaints

Unfamiliarity with procedures

Too many problemsrequire managementsign offs forresolution Marketing

offer not clear

Notification ofabsence

For vacationnotification

Policies unclear

Fishbone Diagram Example

Five (5) Why Analysis

In a Five (5) Why Analysis, team members ask “why” five times to get to the rootcause. Asking why repeatedly causes team members to change the outlook on theroot cause. The effort focuses on the failure in such a way that corrective actionbecomes more obvious.

Application: Used during the Analyze Phase or anytime the root cause of aproblem needs to be understood. Can be done in the office or manufacturing cellwith operators.

Benefits: Understanding the true root cause to a problem is the most importantstep to fixing it. This method allows everyone to have input and gives structure tothe review.

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Ask “Why?” 5 Times

1. Why? Users keep too many large files as email attachments

2. Why? Users don’t know that this results in an extra charge to the company

3. Why? Email policy not communicated

4. Why? Official email policy not defined

5. Etc….

Computer Storage Costs Too High

1. Why?2. Why?

3. Why?4. Why?

5. Why?

Five (5) Why Analysis Example

Failure Modes Effects Analysis (FMEA)

Purpose: Failure Mode and Effects Analysis (FMEA) is a tool used to prioritizepotential corrective action on failure modes based on their severity, expectedfrequency and the likelihood of detection. An FMEA can be performed on adesign or a process and is used to prompt actions to improve product designs orminimize process risk. This is an excellent vehicle to prioritize and organize CIefforts into areas that offer the greatest potential return.

Application: Used during the Analyze Phase, Control Phase or the start of a newproduct launch.

Benefits:• Identifies the ways in which product or process can fail• Estimates the risks associated with specific causes• Prioritizes the actions that should be taken to reduce the risk• Helps evaluate the control plan

DMAIC: Improve PhaseHere the team develops potential solutions for the prioritized, validated RootCauses uncovered in the Analyze phase. The team also optimizes solutions toreduce risk and enhance impact. Members develop a vision of the future state andthen outline an implementation plan to get there. When ready, team memberspilot the best solutions.

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ProcessStep/Input

Potential Failure Mode

Potential FailureEffects Severity Potential Causes Occurrence Current

Controls Detection Risk Priority Number Actions to beCommended

What is the input?

What can gowrong withthe input?

What is the effect on theoutputs?

Howbad?

What are thecauses?

Howoften?

How can thisbe found?

Howwell?

What can be done?

Process Step/Input

What is the process step

and input under

investigation?

Fill carafe with water

PotentialFailure Mode

In what ways does the Key

Input go wrong?

Wrong amount of

water

PotentialFailure Effects

What is the impact on the Key Output Variables

(Customer Requirements)?

Coffee too strong or too weak

PotentialCauses

What causes the Key Input to go wrong?

Faded level marks on

carafe

Current Controls

What are the existing controls and procedures

(inspection and test) that prevent either the

cause or the Failure Mode?

Visual inspection

Water spilled from carafe

None

Water too warm

Coffee too strong Faucet not allowed to

run and cool

Finger

ActionsRecommended

What are the actions for

reducing the occurrence of the

cause, or improving detection?

Replace carafe

Resp.

Mel

Actions Taken

What are the completed actions

taken with the recalculated RPN?

Carafe replaced

Train employees Flo Employees trained

Train employees Flo Employees trained8

8

8

SEVERITY

8

5

4

OCCURANCE

4

9

4

DETECTION

256

360

128

RPN

8

8

8

SEVERITY

9662

11272

2431

OCCURANCE

DETECTION

RPN

FMEA

Failure Modes Effects Analysis (FMEA) Example

Improve Phase Deliverables include:• Confirm Critical X’s • Develop potential solutions• Select solution• Create Future State Value Stream Map• Optimize solution• Pilot solution

� Setup Reduction� Total Productive Maintenance� Replenishment Pull System� Design of Experiment� Team confirms proposed solution will achieve desired results

Improve Phase Tools

Future State Value Stream Map

Purpose: The purpose of the Future State Value Stream Map is to highlight sourcesof waste by comparing this map to the Current State Value Stream Map created inthe Measure Phase and revisited in the Improve and Analyze phase. The FutureState map reflects a vision for change and shows how elimination of waste in thefuture will affect the process. The goal is to build a chain of production in whichthe individual processes are linked to their customer(s) either by continuous flowor pull. Each process gets as close as possible to producing only what thecustomer(s) need(s) on schedule.

Application: Used in the Improve Phase when the team is ready to pilot thesolution. It allows for the entire team to understand what needs to be done tomake the improvement.

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SUPPLIER

DistributionAssemblyAssemblyMachine Machine

Warehouse

Receiving

Customer

Kanban

FIFO FIFO11

ProductionControl


CUSTOMERSERVICE

PURCHASING

20,000 pcs/mo

Module=100

SUPPLIER

DistributionAssemblyAssemblyMachine Machine

Warehouse

Receiving

2/Da

y

Daily

Customer

C/T = 30 Sec


Batch Size 100

C/T = 45 Sec


Batch Size 100

C/T = 60 Sec

C/O = 5 MinUptime 95%Module Size100

C/T = 50 Sec


Module Size 100

200 pcs 500 pcs Max 100 pcs

Max 200 pcs

20 sec 50 sec35 sec 50 sec3.0 hours 9.2 hours 1.6 hours

Processing time = 145 seconds

3.0 hoursProduction lead time = 16.9 hours

Kanban

Kanban

Daily Order

Via paper

Kanban

Kanban

Kanban

1 1 1Set-up ReductionTPM

ProductionControl


Forecast, 6 Month, Fax

Order, Weekly (5-day), Fax

Forecast, 90/60/30 Day, Fax

Order, Daily, Fax

CUSTOMERSERVICE

MRP

PURCHASING

MRP

DOE

Future State Value Stream Map Example

Benefits:• Used as a communication tool by the implementation team to tell everyone

what is expected• Helps the team calculate the true potential of the process and what can be

saved• Allows others to give input to the process before the improvements are made

DMAIC: Control PhaseThe selected solution is rolled out to the organization as a Full-ScaleImplementation in this phase. Before the solution can be implemented, MistakeProofing is used wherever possible to eliminate process defects. StandardOperating Procedures (SOPs), Process Control Plans and Training Plans are alsodeveloped to document the new process and lay the foundation for continuingfeedback, training and corrective action.

Control Phase Deliverables could include:• Create Visual Control tools• Write Control Plan

� Process parameters� Control Mechanisms for the Process� Audit Requirements� Standard work index� Training requirements� Capability (Cpk, Cp) requirements

• Calculate final financial/process metrics• Document project for future implementation• Transition project to process owners• Put Controls in place to sustain improvement and realize project goals• The Control Plan addresses the critical key process variables (KPIVs) that

leverage the output.

Various charts to control a process canhelp sustain a process after it has beenimproved.

Every process will vary unless a tool isput in place to maintain it. Everyproject should have some sort ofControl Plan.

52


Control Plan

First/Last Piece

Mistake Proofing

Control Plan

Yearly Layout

P/M Checklist

Quality Checklist

Control Phase Tools

Control Plan

Purpose: A Control Plan document is a plan or system used to monitor key processvariables. The Control Plan identifies the measurement technique to use, thesample size, operating windows, frequency of inspection and, most importantly, areaction plan for an out-of-specification condition.

Application: Used during the Control Phase to fortify control of a process that hasthe potential to vary from specification and, consequently, significantly affect thecustomer.

Benefits:• Helps our processes operate consistently on target with minimum variation• Minimizes process tampering (over-adjustment)• Assures process improvements that have been identified and implemented

become institutionalized • Provides for adequate training in all procedures• Includes required maintenance schedules

LEA

N S

IX S

IGM

A

53

A. PC Business Need Established configuration that meets user requirements: 1) standard requirements (e.g. networked PC) and 2) special requirements (i.e., unique requirements not met by the std. config.

100% compliance Yes

B. PC Purchases Time and level of effort to purchase PCs. 2002 <100 POs2003 <50 POs

Yes

# PCs Purchased/Month = TBD by BBB

Oct-02

May-02

LSS Team

LSS Team

1. Identify issue to BBB2. Establish target date for resolution

BBB

1. Identify trend to BBB IT/IT Manager

BBB Chairman

IT/IT Manager

GM

BBB

1. Baseline 2002 and 2003 Budgets Finance/Tom

2. Track # of PCs Purchased (e.g., expensed, capital, exceptions) IT/Sam

IT/Sam3. Track # of reallocated PC assets

1. Process Control Plan for Manage PC Assets • BBB• Sr. Staff• LSS

2. Cost Savings Collection Plan • BBB• LSS

Critical toCustomer

Characteristic

Significant CharacteristicDescription Goal FrequencyMeasurement

Method AssessmentDate

Reviewed By

Current

MeasurementSystem Analysis

Annually each July (Prior to start of budget cycle)

Method Audit – PC Business Needs QuestionnaireRed Flags – A “NO” answer to questions

MonthlyMethod Audit – Track # of PC POsRed Flags – Increase in # of POs

Method – Track # of PCs purchasedRed Flags – Increase in # of PCs

Reaction Plan Responsible(Doer) Accountable Consulted

(Advisor)ProcessOwner

• IT• BBB• Sr. Staff

• BBB

Informed

• IT• BBB• Sr. Staff• LSS

• IT• BBB• Sr. Staff• LSS

Cost Savings Collection Plan

TASK POC

Communications Plan

What Who

Control Plan Example

Lean Six Sigma: Accomplishing Goals Requires a Validation Step

The last step required to complete an LSS project is Validation. It takes place threemonths after the Control Gate Review (details on Gate Review start on page 55)or when the initial results can be verified as being on track with the project goal.

A Validation meeting may be held in conjunction with the Transfer Review meetingof the Project Commissioning Process. People involved and the goals of the meetingshould correspond. The sustainability section of Alcan’s LSS Audit providesguidelines for ensuring the project is sustainable through the Process Control Plan.

Validation Step Questions

Answers to these questions must be provided for Validation:• Has the Process Performance been sustained?• Are the KPIVs (Key Process Input Variables) and KPOVs (Key Process

Output Variables) under control and capable?• Is the Process Control Plan still in place, is it monitoring the situation and is

it adequately controlling the process?• Was there a clear transfer of ownership of the new and improved process? • Do Attendees include the Project Sponsor/Process Owner, Black Belt, Green

Belt, Financial Representative?• Was there a clear transfer of ownership to the process owner? • Is the Control Plan being followed (e.g., Metrics monitored per the Control Plan)? • Are the financial results being measured and confirmed (P&L impact)?• Will the improved performance be reflected in the new plan?• Is the assumption for the next 12 months still valid (defined as “annual EVA

improvement” according to Project Charter)? • Have the opportunities to leverage or replicate the project in other areas of

the business, which were identified, been realized?• Do other starting points need to be confirmed by the sponsor or business

manager?

This graphic outlines the progression of validation efforts after a trend to savingshas been established. Close control is key to realizing optimum project results.Project sponsors need to be particularly involved at the final stages of a project toverify that realized improvements are sustainable.

54


3 months 12 months

ongoing

ValidateControl$

Final ResultsReview Meeting Sustain

Annual EVA

Validate Phase:Is the process still in control?

Are the benefits being realized?Gate Review

StopStop

Financial Validation

Lean Six Sigma: Gate Reviews

A Gate Review is a formal event that the project must pass at each DMAIC phaseof the project. It helps focus us on specifics of project progress. Gate Reviewstypically consist of formal Power Point presentation(s) followed by a question-and-answer session and discussion. They should include discussion of changes inschedule, assumptions, risks, financial benefits, resource requirements and EHSmanagement of change analysis in each phase.

A Gate Review ends with a formal “Go/No-Go” decision by the sponsor. If theverdict is “Go,” the date and location for the next Gate Review should be set bythe group and documented in the Project Plan. If the verdict is “No-Go,” theproject ends or additional actions are defined to successfully pass the gate.

Timing for a Gate Review

Define Phase – After team launchMeasure Phase – After all current state data is collected/measurement system is

validatedAnalyze Phase – After sources of variation have been narrowed downImprove Phase – After significant or targeted improvements are achievedControl Phase – After changes have been implementedValidate Phase – Three months after project is completed – this is an extension

of the Control PhaseSustain (Optional): – After all benefits have been verified and the project is

documented with Sponsor sign off (typically 12 months after Validate PhaseGate)

Benefits of the Gate Review

• Provides high-impact coaching opportunity• Helps establish key deliverables• Relates to Milestones in the project plan• Prevents project rework• Prevents false starts• Generates buy-in• Provides formal status reporting• Highlights risks, issues, resource needs• Shares Best Practices• Manages EHS impact

LEA

N S

IX S

IGM

A

55

Gate Reviews

Gate Reviews

1. DEFINE 2. MEASURE 3. ANALYZE 4. IMPROVE 6. VALIDATE

12

3

5. CONTROL

Structure of a Gate Review

Project definition/Charter – highlight any changesProject benefit updateFollows the DMAIC roadmapExpect to spend 30-60 minutes per phase1/3 project presentation2/3 questions and discussion

Gate Review Attendance

Initially, face-to-face meetings or a conference call/teleconference isrecommended.

1. Black Belt/Green Belt.......................Required2. Project Sponsor................................Required 3. Process Owner ................................Required (if not = Project Sponsor) 4. Project Team ...................................Required5. Stakeholders .....................................Suggested 6. CI Director or CI Champion ..........Recommended 7. Value Chain Partners ......................Optional

Gate Review Management

• Gate Review dates should be established in advance and documented on theProject Action Plan.

• Gate Review readiness should be monitored by the Master Black Belt/BlackBelt Coach or Champion. Prior to the Gate Review date, attendees should becontacted and reminded of the meeting location, date and time.

• A Gate Review checklist should be used to ensure completion of allDeliverables.

• Gate Reviews can be formal or informal in tone based on the culture of theorganization.

• The project leader should function as the facilitator for the Gate Reviewmeeting.

56


StopStop

StopStop

StopStop

StopStop

StopStop

Define the opportunity from bothbusiness and customer perspectives

Understand the processand its performance

Search for the key factors (critical X’s) that have thebiggest impact on process performance and determinethe root causes.

Develop, pilot, and implementsolutions for the critical X’s

Develop standardized work andprocess control plans for projecttransition

Verify project resultsand sustainability

Gate Review

Gate Review

Gate Review

Gate Review

Gate Review

1. DEFINE

2. MEASURE

3. ANALYZE

4. IMPROVE

12

3

5. CONTROL

6. VALIDATE

Gate Review and Key Phase Objectives

Lean Six Sigma: Fulfilling Roles Needed to Succeed

CI success requires us to know our responsibilities and to know how businessshould be conducted within this framework. Each of us contributes to the CIProcess. CI should not be something extra that we do. Rather, it should be how wedo business on a daily basis.

Role of the Manager

• Implementation of Manufacturing Excellence Basics (CI Roadmaps)• Use Diagnostic Process• Employ Roadmap Elements• Create Policy Deployment, Action Plans, KPIs at all levels• Project Execution through Project Sponsors• Measure progress• Determine Sustainability• Adopt Best Practices (BP) and allocate resources for deployment• Report implementation of BP to the team leader• Propose suggestions on BP already implemented in plant and have a

common interest for the other plants

Role of Continuous Improvement Champion

• Lead change and drive the CI Process in the business unit• Facilitate Project Selection Workshops• Mentor and Coach GB/BB Belts• Coordinate Gate Reviews• Coordinate CI Audits• Share Best Practices (BP)• Report status to Management• Communicate• Drive the Best Practice Networks process until a BP is adopted• Coach the BP teams • Be accountable to follow up and keep overview of Deliverables• Remove barriers

Role of the Project Sponsor (see additional roles on page 60)

• Own the project – be responsible for timing and financials of project • Determine areas of opportunity• Generate a Rough Charter • Complete Gate Reviews • Allocate resources/Eliminate roadblocks • Deliver financial results

LEA

N S

IX S

IGM

A

57

Role of the Sector Black Belts

• Lead strategic, high-impact process improvement projects• Expect to be mobile in order to undertake the highest value projects within a

Business Group or Corporate Function• Master basic and advanced breakthrough tools and statistics• Deploy techniques of define, measurement, analysis, improvement and

control (DMAIC)• Lead teams and coach Green Belts in day-to-day improvement activities• Carry a very high level of peer respect and be clearly seen as leaders• Take intensive four-week LSS training program. Achieve Alcan Certification

by passing exam, complete 2 projects (3-6 month duration) within a year andmentor five Green Belts

• Take on a full-time, two-year minimum commitment

Role of the Plant Black Belt

• As called upon by Plant Manager, assist in the implementation anddeployment of the CI Process (Roadmap Elements and developing CICulture)

• Lead strategic, high-impact process improvement projects• Expect to be somewhat mobile and to undertake the highest value projects

within the Plant or Business Unit • Master basic and advanced breakthrough tools and statistics• Deploy DMAIC techniques – define, measurement, analysis, improvement,

control • Lead teams and coach Green Belts in day-to-day improvement activities• Carry a very high level of peer respect and be clearly seen as a leader• Take intensive four-week LSS training program. Achieve Alcan Certification

by passing exam, complete 2 projects (3-6 month duration) within a year andmentor five Green Belts

• Take on a full-time, ongoing position dependent on individual developmentplans

Role of the Green Belt

• Use and apply the Lean Six Sigma methodology to drive local improvementswithin his or her facility, department or natural work group

• Lead projects or participate as a team member on Black Belt projects• Contribute from various disciplines including transactional/service that

impacts office and administrative processes or production that affectsmanufacturing processes

• Realize that becoming a Green Belt does not change one’s job description –rather, it elevates an individual’s technical and problem-solving skills

58


• Learn through 2-week training program. Achieve Alcan Certification bypassing exam, complete 1 project (1-3 month duration) and participate onanother team within a year

• Take this on part time, with a minimum 1-2 projects per year and a 10-25%time commitment on projects in his or her job area

Role of the Controller

• Assist in identifying and selecting projects • Estimate Economic Value Added (EVA) benefits• Validate EVA savings projections• Use ProjX• Approve at Define Level Gate Review and validate• Import financial spreadsheet• Determine sustainability• Integrate improvements into business and communicate with project

stakeholders• Report project performance as an integral part of the management process

Role of the Team Member

• Part Time• Trained on specific tools• Aid with project phases, data collection analysis and specific tasks• Execute projects and implement solution• This person can also be a Yellow Belt or White Belt (see Certification section

for more detail)

Role of the Master Black Belt

• Determine Alcan curriculum content• Conduct training of all belts • Oversee quality of training• BB coaching and mentoring• Help identify project barriers• Initiate Best Practice sharing/replication• Lead complex, high-value, cross-sector or business group projects

LEA

N S

IX S

IGM

A

59

Lean Six Sigma: Why Sponsors Are So Important In the CI Process

A Project Sponsor is a leader accountable for business results of the CI project.Generally, Sponsors are accountable for providing resources, conducting ongoingGate Reviews/inspection of project progress and removing barriers to an LSSproject. The Sponsor owns the project and is accountable for capturing andsustaining improvement results.

The Project Sponsor also plays the key role in identifying business gaps andopportunities and in initiating potential projects for a designated BlackBelt/Green Belt to lead. He or she is also involved in defining the project and isaccountable for charter direction as well as rewarding the teams for success.

Project Sponsor Involvement

Project Sponsor Tools

The LSS Black Belts and Green Belts use a variety of DMAIC tools to deliverproject results. However, the Sponsor also needs a tool set to make sure the teamis not jumping to solutions. He or she verifies the project is getting teamacceptance with a data-driven solution base. To help the Sponsor with this task,we have Project Action Plans and DMAIC Phase Reviews. These are designed toask specific questions to make sure project goals are achieved.

Project Action Plan Tool (PAP)

Purpose: The Project Action Plan is a playbook for the Sponsor to follow so he/shecan provide guidance and know what is needed to complete the specific phase ofthe project. It is also used as a tracking tool for action items, deliverables andpotential issues that need resolution. In addition, each of the deliverables on thePAP follows the ProjX software deliverables.

Application: During regular scheduled meetings (preferably weekly) between theSponsor and the Black/Green Belt, this tool helps participants get started andprogress to the next step.

60


Regular (~Weekly)

Sponsor holds regular update sessionswith Team Leader (Black Belt)• Receives Updates• Probes and Listens• Offers Joint Problem-Solving• Reinforces Success• Coaches for Improved Team Leader Performance• Encourages• Commits to Actions• Next Steps

Periodic (Each Phase)

Sponsor holds periodic progress reviewsessions with team, as needed• Reviews Progress Reports and prepares for Gate Reviews• Probes and Listens• Offers Joint Problem-Solving• Reinforces Success• Coaches for Improved Team Performance• Encourages• Committing to Actions• Determines if project is to proceed

Benefits:• Systematic Process to review action items and track issues• Guideline for team on how to approach a project• Mirror image of the deliverables in ProjX. The team can see those

deliverables without having to log in.

LEA

N S

IX S

IGM

A

61

Deliverables/Tasks Completed Final Due Date Complete Comments

Upcoming Deliverables/Tasks Due Revised Due Comments

Actions Scheduled

Current Issues and RisksDueWhoIssue/Risk Revised Due Recommended Action Need Help

DueWho

RequiredIdentify Team Members ProjXProject Launch Team Meeting ProjXCreate Detailed Timeline ProjXRefine and Complete Charter ProjXComplete Detailed Financials ProjXProject Launch Authorization ProjXValidate Voice of the Customer As NeededValidate Voice of the Business SuggestedMacro Level Process Map or SIPOC As NeededCreate Communication Plan SuggestedIdentify Problem Areas As NeededCI Tools Used ProjXTeam Member Sign Off As NeededWhat EHS Activities Have Taken Place ProjXPrepare Gate Conclusions ProjXComplete Define Gate ProjX TBD

Deliverable/Action Revised Due Comments/Resolution Need Help

Key AssumptionsDateCommentAssumption

<<ENTER PROJECT TITLE ON COVER SHEET>>DEFINE Gate Review:

Project Plan — DEFINE

TBD

Deliverables Completed

Upcoming Deliverables

Task Tracker

Issues/Risks

Project Action Plan Example

Gate Review Document

Purpose: The Gate Review Document is a formalized set of questions organized byphase. At the end of each phase, the Sponsor should ensure questions on the GateReview Document have been answered by the team. No questions should surprisethe team and the Sponsor. The Project Action Plan gives the teams specific actionsthat need to be completed in order to answer the questions at the Gate Review.

Application: This document is used during the Gate Review and includes a sign-offarea. It shows that the team and the Sponsor both approve the continuation of theproject.

Benefits: • Standard sign-off process• Provides an agenda for the Gate Review• Team is all on the same page during the Gate Review

62


AttendanceRoleProject Leader (Black Belt/Green Belt)Project ChampionProject SponsorMaster Black Belt (Optional)

OtherOtherOther

Name

Gate Review Questions

1. Project Charter Is the project scoped properly?

a. Has the problem statement been well defined and include current state vs. desired state?

2. Benefits Will the project make a significant impact on the Business?

a. What are the expected Business Benefits of the project?b. Have the “Hard” financial benefits been defined?c. Have the “Soft” financial benefits been defined?d. What are the critical assumptions in the benefit analysis?e. What are the estimated project costs?f. Who has verified the financial assumptions and projected benefits?

3. Identify the Key Output Variables Have the right output variables been chosen?

a. Who are the key external and internal customers?b. What are the CTQs (Critical to Quality Characteristics) for these customers?c. Was a Value Stream Map prepared? Do you have a copy?d. Explain how the CTQs were determined.e. What are the Key Process Output Variables (KPOVs)?f. How do KPOVs relate to key cost, quality, capacity, revenue and/or capital metrics?

b. How does the project align with the business strategy?c. Who are the key stakeholders? Do thy approve of the project?d. What are the key project outputs?e. Is the data attainable?f. Is the project scope defined within an achievable boundary?g. Has a high level process map been completed?h. Is the scope large enough to achieve the project objectives?i. Is the scope narrow enough to complete in 3-5 months?j. How will you determine that the project is completed?

Answer & Brief Description

Project Start DateDate Project Passed

Gate Review

Project Name

Define Gate Review

Gate Review Document Example

Lean Six Sigma: CI Certification Requirements

New Black Belts

1. Turn in completed course pre-work2. Attend all weeks of classroom training3. Prepare and deliver training project presentations during training4. Complete and hand in course evaluations – one for each week of training5. Pass weekly exams with score of 80% or better or re-test with Master Black

Belt.6. Lead two projects (training project and second project) to completion –

one can be a Kaizen project. CI Champion must agree beforehand if Kaizenproject accounts for certification according to criteria

7. Complete Green Belt (GB) mentoring/training requirements (minimumfive GB coaching events per GB coaching expectations)

8. Projects need to be well documented in ProjX up to Control Gateminimum

Previously-Trained Black Belts

1. Undergo rating session based upon criteria for Black Belts2. Attend Alcan Project Sponsor training3. Pass Alcan Lean Six Sigma exams (80% or better)

• 80% or less requires development program to fill the gaps and re-takefinal exam

• For second score of less than 80% full Black Belt training is required4. Attend Change Agent Leadership Facilitation (CALF) training5. Successful completion of two DMAIC projects within one year OR

demonstration of completion of two DMAIC projects (assessed by MasterBlack Belts)

6. Green Belt mentoring (five Green Belts)

New Green Belts

1. Attend both two weeks of classroom training2. Prepare and deliver two training project presentations during training3. Complete and hand in two course evaluations – one for each week of

training4. Take one weekly quiz5. Pass final exam with score of 80% or better6. Complete Training project within six months after completion of training7. Turn in completed course pre-work

Previously-Trained Green Belts

1. Pass Alcan Lean Six Sigma final exam (80% or better)• 80% or less requires development program to fill the gaps and re-take

final exam2. For second score of less than 80% take full Green Belt training

LEA

N S

IX S

IGM

A

63

3. Participation on two completed DMAIC projects within one year ORdemonstration of completion of two DMAIC projects (assessed by CIChampion). The candidate must lead one of these projects.

CI Champion

1. Complete Change Agent Leadership Facilitation (CALF) training2. Attain minimum of GB certification 3. Complete Project Selection training4. Lead a minimum of one on-site Project Selection Workshop5. Lead/Co-facilitate a Leaders/Sponsors workshop

Yellow Belt

This training is designed for business leaders/managers and is focused ongenerating a quick understanding of how CI works. It also incorporates the toolsof Lean Six Sigma, the methodologies that should be used within the business.The goal is to have all of our leaders familiar with the tools so they ask the rightquestion either in day-to-day dealings or when the situation arises. Werecommend, however, that every business leader aspire to be at least a Green Belt.

Certification Requirements:• Participate in 3 days of workshop• Present to class an example for the use of a specific CI/Lean Six Sigma tool in

the business

White Belt

This training is designed for Operators or other personnel to learn and applybasic CI skills and tools in daily problem-solving activities and teams. It isdesigned to be delivered using flipcharts, and it should facilitate an interactiveexchange using real data relevant to the group’s area of responsibility.

• The target Audience is Shop floor employees and clerical/administrative staffor those who need a basic overview of CI

• Delivered by MBB or CI Leader/BB or CI Champion

Certification Requirements:1. ALCAN CI Intro: AIMS, objectives2. Key lean concepts: VSM, Waste3. Key lean concepts: KAIZEN, 5S, SMED4. Risk Analysis: FMEA5. Problem solving: day-to-day issues 6. Working with data: Pareto, SPC

• Participation in all modules for White Belt certification• 6 Modules in the training: (1.5-2 hr for each module, selection based on

actual plant/department need)

64


65

Component Three: Best Practice Networks

Best Practice Networks: Priorities, Objectives and Goals

Food Packaging Americas CI Best Practice Networks Goals are:• Creation of Best Practice Networks for each of the eight manufacturing

processes by 2008These are:� Solventless Adhesive Lamination� Extrusion Lamination� Inventory Management� Waste Management� Laceration Prevention� Waste Recycling� Press (Roto Print)� Press (Flexo Print)

• Other cross-functional Best Practice Networks reviewed and identifiedannually

• 100% implementation of adopted Best Practices

Our upper management focuses on addressing gaps in operations by constructingAlcan’s Best Practice Network teams. Middle managers then have employeesparticipate in the Best Practice teams to gain exposure to available new BestPractices. Team members are tasked with taking the Best Practice back tooperations and leading the implementation.

As project teams develop solutions, we want to take advantage of them and sharethese new standard methodologies throughout the entire organization. Themechanism for sharing these is called the Best Practice Networks. ProjX, theonline CI database, can help us see what solutions already exist.

Alcan Packaging is large and has many facilities and businesses worldwide. Eachof our businesses has developed methodologies or processes to improve marketcompetitiveness. Best Practice Networks allow the entire company to benefit fromlessons we have learned from individual projects completed at every level of ourorganization. How we all leverage what we’ve learned can benefit the entirecompany.

Our Best Practices methodology focuses on finding projects that maximize valueand then implements them across the organization. The Best Practice Networkallows us managers to reference and even shop for proven systems successes so wecan implement them to benefit our business. Please note: Improvement can bemade even if a current Best Practice is being used or if an operation is considereda Best Practice site. This process is perpetual, and CI tools help us to continuallyre-evaluate our systems and methods to maximize value even if we are a “Best inClass” facility.

BE

ST

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What is a Best Practice?

A Best Practice is an existing practice or process that is transferable. It represents asignificant and demonstrated improvement.

It is:Any practice, knowledge, know-how or experience that has been provenvaluable or effective within one organization and may apply to otherorganizations. It has been successfully demonstrated (even locally), issharable and transferable (with limited delay) and is beneficial (measurableand tied to key priorities).

It is not: Just an idea, a brand-new concept or an R&D project.

Best Practice Networks: Why They Work

Best Practice Networks actively tie together the other two CI components(Manufacturing Excellence Basics –CI Roadmaps and Lean Six Sigma) tomaximize benefits to theentire CI system. Withoutthe sharing of NetworkBest Practices, ourbusiness unit managershave to independentlyre-invent the wheel forsolutions to problems thatare impeding our businessprocesses.


0

1

2

3

4

5

6

7

Site

1

Site

2

Site

3

Site

4

BP Identification &

Selection

Per

form

ance

leve

l

Practice A Practice B0

1

2

3

4

5

6

7

Site

1

Site

2

Site

3

Site

4

BP Implementation

Best plant

Best plant

Adoption

• Raise the performance of under

performers to the best

• Working by networking is a way

to save time and money

• Networking prevents

“reinventing the wheel”

Best Practice Methodology

Alcan CI

Manufacturing Excellence Basics

To identify and executeBB/GB projects

To leverage andspeed up the process

To establishfoundations through

Gap Analysis

Best Practice

Sharing

67

Best Practice Team Structure

For a Best Practice Team to be effective it must have the appropriate people andsponsorship. Then, the correct expertise and resources can be applied to theimprovement initiatives. The Best Practice Team Structure graphic shows how theteam should interact. Typically, CI leaders from the business unit help facilitateduring the Best Practice Team meetings. Plant managers or functional managersprovide resources to teams because they want to improve processes. Below is anexample of how a Best Practice Team should function, who the resources are andhow the team interacts to reach its goals.

Best Practice Networks: Methodology

Best Practice Networks Process is a phase-based system very similar to theDMAIC Process. This process allows our teams to identify and then select BestPractices that can impact our business.

The ProjX software system (see page 75) is a database full of many project-basedprocess improvement procedures. We use this time-saving tool as a starting pointwhen looking for new Best Practices. The Best Practice Networks help us followthe path of least resistance to solutions. This tool helps us share what has alreadybeen learned and proven successful.

BE

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Sponsor

Team leader

Facilitator

Team Members4/6 max

Plant

Managers

Provide GuidelinesMake Decisions on prioritiesEnsure Resources

Help on tools implementationFacilitate meetingHelp write down andcommunicate outputs

Provide expertise from plantsDocument BP, help plants to implementCommunicate at their levelValidate the selection of BP

Take commitment andensure implementationPromote team activities

Lead the teamDeliver resultsCommunicate & report

BP sector

Coordinator

Best Practice Team Functions

Select Prepare Implement Control

Valid

ate

Identify Adopt

BPApproval

Community of

interest/pain

68

Best Practice Networks Process – Identify Phase

At the beginning of the year, a corporate gap analysis reveals businessopportunities for the year. Existing Best Practices are matched to those gaps andpresented for Adoption by the Best Practice Network team. Our managers reviewonly those Best Practices sorted according to the needs of our business andproven effective in addressing similar gaps.

Best Practice Networks Process – Select Phase

The most beneficial Best Practices are then selected based on a Benefit vs. Effortcomparison. This can be accomplished by benchmarking high-performingplants/businesses or by recognizing a need in the business that has to beaddressed.


Identify Phase: Inputs/Outputs and Process Step

Input data:

• Operating Agenda

• Gap analysis

Output data:

• Areas of focus and list of good ideas

Identify• Collect needs from BU• Select areas of focus (operations, staff function, etc.)• Propose list of good ideas

Select Phase: Inputs/Outputs and Process Step

Input data:

• Idea of good ideas to be analyzed

• ProjX outputs

• BU/plant KPIs

(*) Using the same rules as the BB/GB projects.

Output data:

• Shortlist of BP to be proposed for adoption, with value at stakes, selected according to appropriate criteria

• BP deployment charter proposal

• BP description

KPIs: Potential coverage for the BP

Select• Select the most beneficial ideas, using B & E matrix*• Evaluate EVA impact at the benchmark plant and on the perimeter of adoption*• Describe the selected BP in a common format• Evaluate the potential coverage

69

Best Practice Networks Process – Adopt Phase

The Adopt Phase is one of the most important in this process. We providemanagers the option to choose and implement Best Practices to avoid the “notinvented here” syndrome. When Best Practice sharing fails, many times the teamimplementing it does not buy into the benefits of a process developed elsewhere.When the Adopt Phase is used, the benefits of a Best Practice are clearlydocumented and proven, so managers who choose to be responsible forimplementation know that the data proves the Best Practice will add value.

Best Practice Networks Process – Prepare Phase

Significant resources are committed to implement a Best Practice that has beenadopted. Business staff will want to track the successful launch and completion ofthe Best Practice. At this stage, we establish formalized teams to review the BestPractice. We modify it to fit perfectly into the particular business it was chosen forso it helps with training and sustainability.

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Adopt Phase: Inputs/Outputs and Process Step

Input data:

• Shortlist of BP proposed for adoption

• Potenial coverage for the BP

(*) Using the same rules as the BB/GB projects.

Output data:

• BP sharing charter (on the perimeter of adoption), adopted by the management team

• Team and sponsor

KPIs: Adoption rate, Target EVA

Adopt• Distribute selected BP to Management team, collect comment and ensure decision making on adoption• Propose and validate the BP deployment charter• Confirm EVA impact on the perimeter of adoption*• Propose and validate team members and sponsors• Confirm the Adoption rate

Prepare Phase: Inputs/Outputs and Process Step

Input data:

• Adopted BP description

• Plants that have agreed to adopt BP

• Team mandate and members, sponsor

Output data:

• Refinement of the BP (if necessary)

• Deployment plan of the BP per plant

Prepare• Kicked off the team and train the members• Refine/improve BP description, confirm KPIs• Build and validate the deployment plan for each plant involved• Consolidate needs/ constraints at BU level (if needed)

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Best Practice Networks Process – Implement Phase

Our team reviews how to pilot the project and deploy the Best Practice.Deployment is a very specific task, and each business may have different risksassociated with the implementation of a new Best Practice.

Best Practice Networks Process – Control Phase

The final and most important phase is Control. As in the DMAIC process, theteam ensures a plan exists to sustain results of the Best Practice implementation.This can be accomplished in a Control Plan or Audit, but it is important to have asystematic follow-up to verify the integrity of the new process long term.

Teams that choose to adopt a Best Practice then report to a Team Sponsor on thestatus of implementing the adopted Best Practice. Each plant has the opportunity tochoose the priority and timing, within reason, for the proper implementation of theBest Practice. The Tracking Document is communicated throughout the organization.

Best Practice Networks Tools

Each Best Practice Network Team should have two measurement documents – aBowling Chart and a Best Practices Network Tracking Document.

Bowling Chart

A BP Bowling Chart outlines KPIs associated with the process they are trying toimprove. For example, a BP team on Business Development might focus on NewBusiness Growth rate. A KPI can be baselined and tracked while the team is activeto verify it is moving in the right direction. Bowling Chart metrics should reflectrepresentation on the team. So, if four plants are on the team, each should have aKPI, if necessary. The bowling chart is communicated to the team members,


Implement Phase: Inputs/Outputs and Process Step

Input data:

• Deployment plan

Output data:

• BP implementedImplement• Pilot (if necessary)• Ensure resources, means at plant level• Implement BP at each plant

Control Phase: Inputs/Outputs and Process Step

Input data:

• BP implemented

Output data:

• Control plan established

• BP description updated

• Overview of progress update

• Proposal concerning further steps and audit checklist

KPIs: Implementation rate andPlant KPIs

Control• Propose and implement the control plan• Give overview of progress, evaluate the impact on plant’s KPIs• Propose BP Audit checklist• Propose BP update (if beneficial) to ensure consistency throughout the plants

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sponsors and upper management so progress on investment can be understood.For more on bowling charts, see page 14.

Best Practice Networks Tracking Document

The Best Practice Tracking Document helps communication with the sponsorsand upper management. It outlines the implementation success rate for the teamand individual groups/plants. It tracks the pace at which Best Practices are beingadopted.

Best Practice Networks: Creating a Best Practice Team

When a gap in the business has been identified and quantified by the business unitlevel management, a Best Practice Team can be created to address this top issue.This review can occur during the Project Selection Workshop phase. If the sametype of project is given high priority by different parts of the business, anopportunity exists to form a BP team. The Best Practice Networks Team Roadmapcan guide Best Practice teams. We strive to share many Best Practices through theseteams and to start new teams on a regular basis. Teams consolidate expertise towork on problems that do not have easy solutions. The roadmap on how to startand run a Best Practice Team should be shared in the opening team meeting andcustomized for the team and sponsor. The team leader should seek to formalizeelements that reflect successes other BP teams have enjoyed with this methodology.

Team-creation phases are cyclical and are used throughout the life of the team.A phase can be re-initiated to focus on different issues and be fine tuned. Phasestructure similar to that of DMAIC is used for the process.

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Deploy

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Business Unit:Network: Solventless Lamination Food and Specialty NA + Meat and Dairy NA

Owner: Chris WardKey Process Indicators

Number of Adopted BP : 7

Objective 4

Implementation rate 100% 0%

Objective 85%

Adoption rate 91% 9%

Objective 80%

Potential coverage 77% 23%

Objective 80%

Plant status & Implementation RateBU RatesBP Status

77% 91% 100% 100% 100% 100% 100% - BP Audited

Potential

Coverage

Adoption

RateImp. Rate Bellwood Boscobel Joplin

St. Louis

ParkShelbyville Yes/No

1 80% 100% 100%non

applicablein progress

2 80% 100% 100%non

applicablein progress

3 80% 100% 100%non

applicableYes

4 100% 60% 100%not

adopted**in progress

5 80% 75% 100%non

applicableYes

6 60% 100% 100%non

applicableYes

7 60% 100% 100%non

applicableYesPiston Pump Meter Mix Dispense Unit Spec

Step

completed

Implementation rate

Solventless Lamination - BP Tracking Sheet

BP # Best Practice Name

Automated Web Alignment System Spec

Safety Chucks for Shafted Turrets Specification

Makeready Procedure

Data3 Waste Identification and Reporting Proc

RT-Pumpable Adhesive Container Specification

Adhesive Coat Weight Measurement Procedure

100%

0%

15-Aug-05

8-Sep-05

15-Aug-05

1-Jul-06

15-Aug-05

15-Aug-05

nonapplicable

15-Aug-05

8-Sep-05

15-Aug-05

20-Sep-05

15-Aug-05

15-Aug-05

20-Sep-05

15-Aug-05

8-Sep-05

15-Aug-05

8-Sep-06*

15-Nov-05

notadopted***

15-Nov-05

15-Aug-05

8-Sep-05

15-Aug-05

nonapplicable

notadopted**

1-Feb-06

nonapplicable

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Best Practice Network Team Creation Phase I: Define and Measure

Internal Benchmarking and Creating a Baseline Identifying Immediate Needs and Potential Quick Wins

• Quick round of meetings at each plant site involved on the team• Plants participate on the team and represent the plant in the meetings• 1 meeting per month at each site (length is 1.5-2 days each; 4 meetings total;

arrive night before; leave mid-afternoon on second day)• Host site provides informal overview

� Markets, products, equipment, technology, etc.� Success stories� Current issues and limitations� Metrics/KPIs/Machine Center Bowling Charts� Operator/partner/technical management participation

• Host site provides detailed tour of operations� Process observation� Spend significant time on floor; solicit operator/partner input� Capture capabilities/take digital photos of operations to aid future

discussions• Team debriefing

� What opportunities for improving the plant (visiting plants) wereobserved?

� What suggestions can be made for the host plant based on this experience?� Identify potential quick wins and provide immediate advice for current

issues and limitations� How can the team help the host team member/host plant meet critical

goals?• Initiate implementation of quick wins – develop Action Plan for

implementation and timing by plant. To be tracked at each meeting.• Begin compiling and tracking KPIs for process [e.g. waste, Net Effective Feet

Per Minute (NEFPM), Make-Ready (MR) time per color] in a Bowling Chartformat (with aid of Business Warehouse potentially)

• Begin tracking waste with common defect definitions to facilitate globalwaste analysis by defect

• Significant quick wins or success stories from this phase should bedocumented by a Best Practice as soon as possible

• Determine how information will be shared (website, shared drive)• Begin sharing research project results on a regular basis


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Best Practice Network Team Creation Phase II: Analyze

Create Process Documents Identify Opportunities

• Begin this phase at the same time as Phase I (i.e, at first benchmarkingmeeting) and continue with conference calls between meetings; whenmonthly benchmarking meetings are complete, continue with bi-monthlyface-to-face meetings rotated between the member plants with conferencecalls between meetings.

• Create Process Map� What stages comprise the process?� What are the desired outputs of each stage?� What inputs to each stage influence the output?

• Create Cause and Effect Matrix� What are our external and internal customers’ requirements (i.e., what are

the key attributes of our product)?� Rank requirements by importance to customer (including customer in

process is desirable)� Rank inputs identified on the process map by their effect on customer

requirements/key attributes• Create Process FMEA (Failure Modes Effect Analysis)

� Use ranking of inputs in Cause & Effect matrix to determine which stagesof process are most critical (e.g., drying)

� For these stages, what are the failure modes of the process? Failure modesare the opposite of the desired outputs.

� What are the potential causes of each failure mode?� Rank severity, frequency of occurrence and likelihood that the failure mode

will not be detected – these three rankings are multiplied to produce a riskpriority number (RPNs) for that failure mode. Rankings are achieved byconsensus of member plants or averaged across the member plants.

� Rank failure modes by RPN. High RPN represents significant improvementopportunity.

• Introduce concept of control plan but do not complete at this time� This is the plan to prevent the failure modes from occurring.� What are the spec limits?� Is the process capable relative to spec limits?� What are the measurement systems? Where and when do we measure?� What is the variation due to the measurement system itself (gauge R&R

study)?� What do we do if we are out of spec/control (reaction plan)?

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Best Practice Network Team Creation Phase III: Improve

Identify and Prioritize Best Practices to be documented Set Implementation Goals

• Prioritize improvement opportunities identified by Process FMEA• Create action plan for prioritized improvement opportunities including the

determination of which Best Practices need to be identified and documented• Significant quick wins or success stories from Phase I should also be

documented by Best Practice• Set team goals for year using Bowling Chart format• Bowling chart is published monthly

Best Practice Network Team Creation Phase IV: Control

BP Documentation and ImplementationAudit Process

• Quarterly face-to-face meetings with conference calls between meetings• Write Best Practice (team members typically write them, team approves)• Determine how many plants could adopt BP (KPI: coverage)• Plants choose to adopt BP or not (KPI: adoption rate) based on benefit, and

effort capital required. Team members are responsible for obtainingmanagement commitment and determining implementation date.

• BP is implemented with appropriate training (KPI: implementation rate bytarget date)

• Develop control plan and audit checklist for BP• Audit BP (team members will be involved in conducting audits at least

initially) (KPI: audit scores)• BP implementation process is tracked with standardized spreadsheet and

published monthly

Other Potential Projects and Ideas

• Training Tools• Defect ID/Troubleshooting Guide (define defects; link defect identification to

causes in Process FMEA and reaction plan in Control Plan)• Line audit• Vendor presentations • New technology improvements• Change over time reduction• R and R studies• Capability (CpK, Cp) improvement for critical characteristics • Error proofing improvement• Measurement standardization • Preventive and Predictive maintenance/TPM


Part IV: Tracking Our Success – CI Software ProjX

ProjX Software

Alcan’s online ProjX software system helps CI teams implement our projectsusing standardized methodologies. The ProjX tool supports the CI community inthe areas of:

• Project execution and tracking• Project Charter• LSS methodology• Deliverables• Timeline• Project documents and history log• Best Practice sharing by providing search capabilities in a common database• People search capabilities to facilitate CI networking• Reporting of various indicators on the performance of CI• Financial reporting at all levels of the organization• Project progress • CI potential

ProjX: Logging in

We can log into the ProjX tracking system by first going to the AIMS: ContinuousImprovement Section (circled below) and choose Project Evaluation and Tracking

A portal will open for signing into ProjX.

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ProjX Login Location

Also in this section are Training Materials, Financial Guidelines and templates forLSS Project Charters (see portals). The Portals have links that providedownloadable tools. Typically the most up to date versions are online.

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Portals for Lean Six Sigma Project Charters

ProjX: Handy Facts

Password and User Id validation are done by Active Directory (ANS)ANS PASSWORD is REQUIRED

Part of a individual’s personal information comes from Alcan’s “Blue Pages’’directory.

To get information on a forgotten user name and ANS Password, please use thislink “http://web.ans.alcan.com/ANSPortal/’’

For help, go to [email protected]

The Administrator of the system can add an individual to ProjX.

Send him or her an e-mail including the following information or contact the CIChampion:

As for General Information and URL Addresses:

ProjX Production Internet Address:https://alcan.sixsigmaprojx.net/ProjX/login/login

ProjX Test Internet Address (Exercise Site):https://qaalcan.sixsigmaprojx.net/ProjX/login/login

CI WEB Internet Address: http://web.alcan.com

To log into ProjX, type in the ANS ID and Password per the instructions on thelogin page.

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FirstNameJohn Smith SmithJ Supervisor Green Belt Packaging Food Neenah

LastName

ANS ShortName

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SecondaryRole

BusinessGroup

Sector Plant

Login Page

ProjX: Basics of Navigating

Every Lean Six Sigma improvement project should be in the ProjX system. Tolearn how to navigate this user-friendly system, first try the online simulation orgo to the “Exercise Site.” Here are a few pointers illustrating how ProjX works andhow its system functions.

The global navigation bar can be accessed from the top of any page in ProjX andprovides immediate access to basic ProjX functionality across the ProjX system.

• My ProjX: Personal ProjX page containing list of ideas, projects anddeliverables user is working on as well as custom searches and reports

• Searching Features: Full Text, Project and User Searches• Reporting Features: Summaries on Users, Projects and Dashboards

Once logged in, the first page displayed is the personal ProjX page called MyProjX. This page is broken into two sections: My Projects and My Deliverables.

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My ProjX Page

Compact projectlisting withone line perproject

My Deliverables sectiondisplays open deliverables assigned to you with due date and status

Ability to save or change thecurrent My ProjX pagesettings as your default view

Create New Project button

The My ProjX Sub-Navigation Bars allow us to put projects into a Hopper, so theinformation and ideas are captured for the business. This happens even if we arenot working on these projects. It also allows us to search for best practices thatother project teams have developed.

ProjX: Using it to Find Best Practices

ProjX allows us to share information about other similar projects currently beingworked on by Black Belts and Green Belts. The ProjX online software canspecialize searches to find other similar Black Belt projects. We encourage sharingwith this tool because on average two or three similar projects are being workedon at the same time. Click on the Search function on the control bar after loggingin to ProjX to access the filter screen and search for a listing of projects associatedwith a search.

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Sub-Navigation Bars

• Programs: group projects into “programs” for searching and roll-up reporting

• Idea Hopper: List of submitted ideas that can be turned into projects

• Idea Prioritization: Matrix showing prioritization scores for ideas

• Best Practice: designate, display and search for best practice projects (designated with a star).

Search Function

It also is possible to save the criteria of the search to use it another time. Searchcriteria can range from tools used in other projects to specific key words that canbe found in the project (as described in the Best Practice Network Team section).We recommend looking for similar projects on the software even before starting.Using what other people have learned can provide great value. We can learn fromtheir formats and methods to make projects easier to implement.

ProjX: Inputting a New LLS Project

To input a project, use the new project box on the My ProjX page and click theCreate New Project button. When the Create New Project wizard page appears,complete it and the system will create the entire project roadmap based on theselected methodology. Project ownership will be assigned by default unlessotherwise assigned.

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Financial Totals Button: Gives a quick summary of the forecast and actual savings for each of the projects that are returned in your search.

Exporting Data: Opens a new window that allows you to select the project search result fields that you want to export into an Excel spreadsheet.

Search Criteria

Creating a New Project

The ProjX system is organized by Phases, and a Black Belt or Green Belt isresponsible for populating the phases with information pertaining to the project.Each phase will have specific questions and inputs designed to walk teammembers through the project in a controlled manner.

E-mail offers prompts when a Deliverable is due by a specific team member. Auser can either click on the hypertext in the e-mail or log on manually andcomplete the input. The project leader can assign the project tasks to any teammember, but at the end of each phase, appropriate approvals are required.

Deliverables are the specific tools, Action Items or Milestones identified by thecompany to complete a particular phase of a project. The work breakdownstructure is logically arranged in a top-down fashion in the suggested order ofcompletion.

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Project Phases

Click on phase button to access the specified phase page and deliverables.

Deliverables

Click on text link to view the deliverablehome page.

ProjX: Sign Off Process for LSS Projects

This chart shows who has responsibility for the phase-by-phase Gate Review signoff, and it indicates when a joint Gate Review sign off is required. For example, inthe Control Phase, both the Sponsor and CI Champion are responsible for GateReview sign off. The chart also outlines Financial Phases for the project fromforecasting savings to narrowing savings estimates down and tracking projectsavings. The Controller signs off these Financial Phases in ProjX. The ProjXsystem also sends the Controller an e-mail reminder about sign off. Please note:the Define Phase Financial Estimate is just that, an estimate. The calculationshould be accurate and assumptions conservative, but the Controller should notstop progress on the sign off if 100% of all the assumptions are not known at thistime. Scrutiny on the financials occurs in the Validate Phase.

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Lean Six Sigma Sign-off Methodology

ProjX: Updating Financials

The Financials page provides a view of all financial information for a particularproject.

If a project is displayed in ProjX, update or review it in the Personal ProjX homepage. Then complete a variety of functions to work on the project. Each of theoptions can be clicked on, and specific deliverables can be populated dependingon the project requirements. One item that is very important in this process is thefinancial upload of project savings information. A standard project valuation toolmust be uploaded into the project for it to be approved by the CI Champion ofthe sector. This financial software can be downloaded from the Alcan CI website(see page 76).

Using the financial guidelines, it is appropriate to estimate the potential savings ofthe project. Then go to the Financial section of the ProjX software and populate itby uploading the Financial Valuation tool file. This is the standard tool thateveryone in Alcan uses for determining the Economic Value Added (EVA) savingsof a project.

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Financials Page

Financial Valuation Tool Example

Validation Phase

• Project Status changes to the Validate Phase when the Control Phase iscompleted.

• The Validate Phase allows the financial savings for the project to be tracked inProjX for up to 12 months after the project improvements have been made tohelp ensure the forecasted savings are being realized.

ProjX: Most Frequently Asked Questions

1. The dropdown menu does not work; I have an object error.

Possible problem a): The Java driver is not installed or is outdated.

Action: Download the latest version from http://www.Java.com.

Possible problem b): The regional setting on Windows is not US eng.

Action: When using ProjX the user needs to change the setting in the controlpanel and choose US eng.

2. I’m a new user, and I’m unable to log into ProjX using my ANS account.

Possible problem: The ANS account and the ProjX database are notsynchronized. To synch them reset the password.

Action:

Pechiney user: contact local IT to reset the Notes user account. This willactivate and synchronize the ANS account at the same time.

Alcan user: Use the Intranet web site to reset,http://web.ans.alcan.com/ANSPortal/. Note: If using the same account forlogin for Windows, it will reset this password as well.

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Validation Phase

3. I’m having problems assigning a project to a sponsor, and I know that this personis created in ProjX.

Possible problem: The user may not be a Sponsor. He or she may haveanother role.

Action: The Sponsor role can be added. Contact the Key User. Refer to the CIweb site under ProjX and Key User link to identify the Key User or contactthe System Admin using the link in ProjX.

4. My e-mail address has changed, and even though I did the modification in BluePages, I do not receive automatic notification from ProjX.

Possible problem: Both databases are not synchronizing.

Action: Send the request to change the personal information to the SystemAdmin using the link in ProjX.

5. I’m trying to logon to ProjX, and I only see a blank page.

Possible problem: You have tried to logon several times from your computerand/or from the computer of a coworker in the same location.

Action: Contact local IT support. They will try to reach the login page fromtheir location. If they are successful, then the trouble ticket should be issuedto Network Support. If they cannot, contact the System Admin of ProjX. Theapplication may be down or unreachable for the time being.

6. I’m running a report but it doesn’t seem to work. After several attempts the page isstill blank.

Possible problem: Verify the machine settings to: Windows Regional Setting,Internet Setting and the Java version.

Action: Contact local IT support.

7. My profile location has changed, and I want to update ProjX.

Action: Contact the Key User; refer to the CI web site under ProjX and KeyUser link to identify the Key User or contact the System Admin using the linkin ProjX.

8. I want to cancel or change a project status in ProjX.

Action: Contact the ProjX System Admin using the link from the application.

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9. I can’t create a user account in Projx even though my role is properly defined asUser Admin.

Possible problem: Another role may be defined. The User Admin and SystemAdmin roles cannot be combined with any project roles.

Action: Send the user information using this example to the System Admin.

Example: Last name: Doe First name: John ANS ID: doej Business group: Packaging Sector: Food Packaging Europe Business Unit: Food Packaging Iberia Plant: Barcelona, Spain Department: Production Role: Sponsor

10. I can’t login to ProjX; I don’t know my user account.

Action: Refer to the ANS web site and use What’s my ANS.http://web.ans.alcan.com/ANSPortal/

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Glossary

5S:Organizational strategy used in workplaces to increase efficiency and standardize.It is the most basic of Lean principles. The 5S phases are: Sort, Stabilize(Organize), Shine (Clean), Standardize (Visual Control) and Sustain.

Action Item Register: (see Action Plan)

Action Plan:Specific items that need to be completed in order for the team to reach its goals.Typically these specific actions tie to an individual who is responsible as well as atimeframe. The plan is comprised of all needed action items and is tracked on anAction Item Register.

Adopt Phase (Best Practice Networks):Phase of the process during which managers can choose and implement BestPractices presented to them.

Alcan Integrated Management System (AIMS):A standard system that provides a balanced framework to help us reach our goals.It helps align our efforts within and between business groups for maximum effectand value. AIMS has four major components: Environment, Health and Safety(EHS) FIRST, Value-Based Management, Continuous Improvement (CI) andAlcan’s People Advantage.

Alcan’s People Advantage:One of the four pillars of the Alcan Integrated Management System (AIMS).Alcan’s People Advantage reflects how alignment, capabilities and engagementdrive overall workforce performance and build a high-performance organization.

Alcan’s Vision:To double Alcan’s value every five years.

Annual Initiatives: (see High-Level Annual Initiatives)

Benefit vs. Effort Chart:An analysis chart that applies a simple equation for assessing the financial orEnvironment, Health and Safety (EHS) impact versus the amount of time andexpense it will take to complete the project.

Best Practices:Methods proven to offer a more efficient approach to completing a process. ABest Practice will always have Standard Work Instructions.

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Best Practice Networks:The third Component in Continuous Improvement. Best Practice Networks usespecific teams to determine Best Practices and focus on their implementationacross the business.

Black Belt (BB):Full-time Lean Six Sigma project leaders and experts at the ContinuousImprovement process.

Bowling Charts:Visual reminders of objectives, goals and progress on Key Performance Indicators(KPIs) linked to specific projects, goals and actions. These are usually updatedmonthly.

Building Block House (CI Roadmaps):A format used to provide a quick, visual reminder of company goals and theContinuous Improvement Roadmap Foundational Elements. Used to helpprioritize which roadmaps should be completed first.

Cause and Effect Matrix:The tool that helps to develop an understanding of the greatest sources ofvariation within the process. It pinpoints the critical few key process inputvariables (KPIVs) that must be addressed to improve the key process outputvariables (KPOVs).

Continuous Improvement (CI):A process designed to maximize value by ensuring operational excellence andcontinued alignment with our vision, strategies and objectives. The process resultsin cost savings, business growth and strategies that maximize the value of thecompany.

CI Roadmaps:Step-by-step instructions for how to improve our business. Also known asManufacturing Excellence Basics, Continuous Improvement (CI) Roadmapsdefine what improvement looks like throughout the organization. CI Roadmapswere developed as a result of benchmarking several other companies within andoutside our industry. They include five Axis areas of emphasis: EmployeeMobilization, Customer Relations, Supply Chain, ManufacturingSystems/Processes and Products & Processes Innovation.

CI Roadmap Elements: (see Foundational Roadmap Elements)

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CI Roadmap Index:A display chart that lists the Continuous Improvement Roadmaps FoundationalElements. The Index illustrates levels of performance and outlines a road forimprovement. This fully comprehensive list highlights roads by color andprioritizes them by functional group.

CI Umbrella:Includes three components of improvement methodologies – ManufacturingExcellence Basics, Lean Six Sigma and Best Practice Networks. These componentsare methodologies for doing business and generating improvement activities.

Control Phase:The final and most important phase in a problem-solving process. It verifies thata Control Plan has been established and helps assure systematic follow-up willoccur to verify continued adherence to new practices.

Control Plan:A required document for the Control Phase of a problem-solving process. Itoutlines how the process will be sustained and controlled as well as reaction plansin case of failure.

CTQ – Critical to Quality:A Lean Six Sigma term that indicates the activities most important to a customer’ssatisfaction with the quality of our work.

Critical X’s:Critical inputs to a process often related to the root cause of a failing process.These relate to the output of the process, called the Y= F(x).

Define, Measure, Analyze, Improve and Control (DMAIC) Methodology:A problem-solving method used for Lean Six Sigma (pronounced duh-MAY-ick).DMAIC is an acronym for different phases within a Lean Six Sigma project(Define, Measure, Analyze, Improve and Control).

Deliverable:A requirement or task to complete a specific portion of a project. It can be anaction item and be listed on the Action Item Register. Deliverables are usuallyassigned to team members for completion during an LLS project.

Economic Value Added (EVA):A standard Alcan financial evaluation comparing the overall cost of

implementing a project with the overall benefit. Alcan invests in EVA positiveprojects that create rather than diminish value.

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Environment, Health and Safety (EHS) FIRST:A commitment from each employee and from all levels of Alcan to improvethrough increased awareness of environmental, health and safety issues and toshare knowledge on these topics with Best Practices.

Failure Modes Effects Analysis:A tool that identifies ways the product or process can fail and eliminates orreduces the risk of failure.

Fishbone Diagram:A fast method for analyzing the root cause of a problem. Six sections or “bones”help categorize potential root causes created by Man, Machine, Method,Measurement, Material and Mother Nature or Environment. The diagram is usedby manufacturing cells or at meetings to help clarify root causes of failures.

Five (5) Why:A method to drill further into high-level root causes highlighted in the FishboneDiagram. The method helps team members go beyond general root causes toreveal more direct ones.

Foundational Roadmap Elements:Specific, measurable goals for work groups that are developed through theManufacturing Excellence Basics (CI Roadmaps) Continuous Improvementcomponent.

Future State Value Stream Map:A tool that represents a process goal. This map is compared to a Current StateValue Stream Map to highlight required changes.

Gap Analysis:A review of processes or businesses to reveal elements that need improvement.

Gate Review:A formal event through which a Continuous Improvement project must pass ateach phase of a Lean Six Sigma project. A Gate Review is conducted to concludeeach phase: Define, Measure, Analyze, Improve and Control.

Gate Review Document:A formalized set of questions organized by phase that helps ContinuousImprovement or Project Sponsors verify that required, specific actions have beencompleted for a Lean Six Sigma project.

Green Belt (GB):A change agent who works on Continuous Improvement/Lean Six Sigma projectspart time. A Green Belt takes a 2-week CI tools course.

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High-level Annual Initiatives:These integrated Alcan goals create focus for mid-term company goals and makethem specific and measurable. They specify competencies on which employeesmust focus in the next 12 months so as to make dramatic inroads toward five-yearobjectives.

Identify Phase (Best Practice Networks):This first phase of Best Practice Networks begins after corporate gap analysisreveals business opportunities.

Implement Phase:The phase of a project during which the team pilots solutions to fix the rootcauses of a problem or improve a process.

Kaizen Project:(pronounced ky-zon) A Japanese word constructed from two ideographs: the firstrepresents change and the second goodness or virtue. A Kaizen Project uses ateam approach. Work is done during an intensive five-day event by the peoplewho do and support the work.

Key Performance Indicators (KPIs):Specific representations that allow us to determine if our ContinuousImprovement action plans are meeting objectives.

Lean Six Sigma (LSS):A standard and systematic approach to solving problems and improvingprocesses.

Long-term Strategies:These form a bridge between our organization’s current situation and its long-term vision.

Manufacturing Excellence Basics (MEB):Known as the Continuous Improvement (CI) Roadmaps, these help us focus on adirectional approach to the most important goals and provide structure to carryout our business plans. This common language allows every business, no matterhow different, to manage and sustain measured improvement. This is the methodused to build a foundation for managing and improving the business.

Master Black Belt (MBB):An expert on Lean Six Sigma. This person is a problem-solving resource who actsas a trainer and coach within Alcan.

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Measurement System Analysis:A statistical method for validating that a measurement system can measure aspecific process accurately, precisely and without bias on a consistent basis.

Mid-Term Strategies:These map a three-to-five year journey toward the company vision and align theteam with top annual initiatives.

Milestone Charts:These Policy Deployment tools help project managers lead initiatives. Theyinclude details on how and when major steps will be completed and who will beresponsible for them.

Operating Agenda:This contains general actions that need to be completed to meet the StrategicAgenda requirements. It is supported by more specific annual initiatives and theX-Matrix tool.

Policy Deployment:A disciplined methodology to distribute a strategic plan throughout ourorganization. It translates strategic intent into the required day-to-day behavior.

Prepare Phase (Best Practice Networks):This fourth phase of Best Practice Networks involves establishment of formalteams to review and implement selected Best Practices.

Process Capability:The ability of a process to repeat a task expressed as a range. Statistically,capability is defined as six standard deviations. A process is considered capablewhen its expected output is smaller than the specification range.

Process Map:Lists the sequence of steps in a process and lists the outputs and inputs in eachstep. Inputs are characterized as controllable or noise.

Project Action Plan (PAP) Tool:Serves as a playbook for a Continuous Improvement sponsor so he or she canprovide guidance for a Lean Six Sigma team. It also serves as a tracking tool foraction items, deliverables and issues that require resolution.

Project Charter:Most important step a team takes prior to getting started on a Lean Six Sigmaproject. This document describes what the sponsor wants the team to accomplish.

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Project Selection Workshops (PSW):A CI tool used to find the largest opportunity improvement projects to meet ourbusiness Operating Agenda. This is conducted annually at a minimum to helpdetermine yearly goals and budgets.

ProjX:Alcan’s online software system used to help project teams implement theirprojects using standardized methodologies. All Black Belt projects are entered intoProjX for tracking and review.

Roadmap Axes:A grouping of several CI Roadmap roads that support the company’s values.

Root Cause:The true and most basic reason a failure occurs. Finding a root cause usually takesanalysis and the use of methodologies such as Five (5) Whys or Fishbonecharting.

Select Phase (Best Practice Networks):This second phase of Best Practice Networks involves choosing projects based ona Benefit vs. Effort comparison.

Self Audit:An evaluation that creates a baseline related to current performance. This is usedin the Manufacturing Excellence Basics (CI Roadmaps) component.

SIPOC (Suppliers, Inputs, Process steps, Outputs, Customers) Diagram:A high-level process map used in Lean Six Sigma. It helps address customer-related issues.

Sigma Level:Sigma is a statistical term that measures how much a process varies fromperfection, based on the number of defects per million units.

One Sigma = 690,000 per million unitsTwo Sigma = 308,000 per million unitsThree Sigma = 66,800 per million unitsFour Sigma = 6,210 per million unitsFive Sigma = 230 per million unitsSix Sigma = 3.4 per million units

Standard Work Instructions:Standard and documented approach to how we do work or tasks. It is a step-by-step guide for people to follow to complete a complex task.

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Statistical Process Control (SPC):The application of statistical methods to identify and control the special cause ofvariation in a process.

Strategic Agenda:Method for aligning the organization and bridging the gap with the strategies ofthe management staff.

Total Productive Maintenance or Total Preventive Maintenance (TPM):An innovative equipment management system that optimizes machineeffectiveness, eliminates equipment break-downs and promotes total employeeinvolvement.

Validate Phase (Best Practice Networks):In this phase the team verifies the Best Practice they implemented is performingproperly and producing anticipated benefits.

Validate Step:The last requirement to complete a Lean Six Sigma project. It is conducted threemonths after the Control Gate Review, and it may be done in conjunction withthe Transfer Review Meeting of the Project Commissioning Process.

Value Stream Map:A Lean Six Sigma tool that outlines a process in great detail to assist in deliveringimprovements.

Value-Based Management:The basis for all strategic investment decisions and value-generating initiativesworldwide at Alcan. (Also referred to as Maximizing Value.)

Variation:The fluctuation in process output. It is quantified by standard deviation, a

measure of the average spread of the data around the mean. Variation issometimes called noise. Variance is squared standard deviation.

Vision: (see Alcan’s Vision)

Visual Management:One of the Foundational Elements from the Continuous ImprovementRoadmaps. This method for using visual aids helps manage a business orworkplace.

Voice of the Business:Data from the business reflecting financial performance and related gaps.

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Voice of the Customer:Data from the customer that reflects opportunities for service, quality andperformance.

Voice of the Employee:Bottom-up approach for ideas, which includes Environment, Health and Safety(EHS) and Regulatory projects.

Voice of the Process:Perspective of how individual systems are performing.

White Belt:Operator or other personnel who has been trained in Lean Six Sigma basics,

Alcan’s management system problem-solving and other CI tool sets.

Work Standards:One of the Foundational Elements from the CI Roadmaps. Work Standardsdocument policies and Best Practices in the form of procedures, workinstructions and checklists. These are a starting point for new improvement andsustainability.

Workplace Organization:One of the Foundational Elements from the Continuous Improvement (CI)Roadmaps. Employing this method creates a clean and efficient workplace. Itincludes cleanliness and orderliness principles found in the 5S method.

X-Matrix:A comprehensive chart that shows long-term objectives, annual improvementactivities, Key Performance Indicators (KPIs), financial goals and resourcesneeded to achieve results.

Yellow Belt:A business leader/manager who has completed a 3-day introductory trainingcourse on Continuous Improvement and Lean Six Sigma tools.

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Action Item Register ............................................12Action Plan...........................................................12Alcan Governing Objective ...................................1Alcan, Inc. Vision...................................................1Alcan Integrated Management System

(AIMS) ...........................................................2-4Alcan Packaging Vision .........................................2Alcan’s People Advantage ......................................4Analyze Phase (DMAIC) .........................46-50, 55

Benefit versus Effort Chart..................................34Best Practice Networks.............................17, 65-74Best Practice Networks Process/Phases.........67-70Best Practice Networks Tracking Document .....71Best Practice Team Structure ..............................67Black Belt..................................................29, 58, 63Bowling Chart (Best Practice Networks) ...........70Bowling Charts

(Manufacturing Excellence Basics) ................14Building Block House....................................21, 23

Cause and Effect Matrix ................................46-47Continuous Improvement (CI).................4, 16-17CI Policy for Food and Specialty

North America ................................................18CI Roadmaps ..................................................19-24CI Roadmaps Index .......................................21-22CI Umbrella..........................................................15Control Charting............................................44-45Control Phase .....................................52-53, 55, 70Critical Enablers...................................................36Critical X’s ............................................................35Critical-to-Quality .........................................17, 25

Data and Facts................................................26, 29Define Phase (DMAIC) ...........................36-40, 55Delight Customers .........................................26-27Deliverables.....37, 41, 46, 51, 52, 55, 57, 78, 81, 83DMAIC ...........................................................35-56

Enhancing Quality...............................................26Environment, Health and Safety

(EHS) FIRST .....................................................3

Failure Modes Effects Analysis............................50Fishbone Diagram ...............................................48Five (5) Why Analysis ....................................48, 49Foundational Elements ............................19, 21-24Future State Value Stream Map.....................51-52

Gap Analysis.............................................16, 21, 68Gate Review ........................................54-56, 62, 82Gate Review Document.......................................62Green Belt......................................29, 58-59, 63-64

High-Level Annual Initiatives ...............................9

Implement Phase .................................................70Improve Phase (DMAIC) ........................50-52, 55Improve Process Flow..........................................28Improve Processes ....................................26, 28-29Increasing Speed ..................................................27

Key Performance Indicators (KPIs) ..........5, 12-14

Lean Six Sigma (LSS)....................16-17, 25-64, 82LSS Keys to Success..............................................26LSS Roles.........................................................57-59LSS Validate Step..................................................54Long-term Strategies .............................................9

Manufacturing Excellence Basics ............16, 19-24Master Black Belt ...........................................29, 59Measure Phase (DMAIC) ........................41-46, 55Measurement System Analysis.......................42-44Mid-term Strategies...............................................9Milestone Chart..............................................12-13

Operating Agenda ..............................................6-7

Policy Deployment...........................................5-14Process Capability ..........................................45-47Process Map..............................................39-40, 46Project Action Plan Tool ................................60-61Project Charter .........................................36-38, 54Project Selection Workshop ....................12, 31, 71ProjX .........................................................67, 75-86ProjX Login ....................................................75-77ProjX: Most Frequently Asked Questions.....84-86

Reducing variation ...................................26, 28-29Roles................................................................57-59

Self Audit..............................................................24Sigma Level ..........................................................28SIPOC Diagram .............................................39-40Sponsors Are So Important.................................60Statistical Process Control...................................44Strategic Agenda.................................................6-7

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Teamwork.......................................................26, 29

Value Stream Map ....................................41-42, 51Value-Based Management.....................................3Variation ..................................27-29, 42-44, 46, 53Vision ..............................................................1, 6-9Voice of the Business ...........................................33Voice of the Customer ...................................26, 33Voice of the Employee .........................................33Voice of the Process .............................................33

White Belt.......................................................29, 64

X-Matrix .........................................................10-14

Yellow Belt ......................................................29, 64

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