Making the Case for Quality

December 2011

Ford Team Uses Six Sigma to Reduce Costs

While Improving Environmental Impact
by Janet Jacobsen

Ford Motor Co.’s consumer-driven Six Sigma strategy involves regular analysis of scorecard metrics to
At a Glance . . . detect performance trends. In the fall of 2009, during a routine metrics review, officials at the organiza-
tion’s Saarlouis, Germany, plant discovered an escalation in basecoat paint consumption. Not only was
• Performance metrics the upsurge driving production costs higher, but it also pointed toward increased solvent consumption,
signaled increases which in turn led to higher levels of volatile organic compound (VOC) emissions. A Six Sigma team
in basecoat paint
addressed both cost and environmental issues and, at the same time, uncovered an unexpected solution
consumption at Ford’s
vehicle operations center
that surprisingly led to a shift from a robotic to a manual process.
in Saarlouis, Germany.
About Ford Motor Company
• A cross-functional Six
Sigma team was chartered
to solve the problem using The Ford Motor Co., founded in 1903, designs, develops, manufactures, and services cars and trucks
a DMAIC approach. across six continents under the Ford and Lincoln brand names. The company also provides services
• Using a variety of quality and products in the areas of maintenance, collision, vehicle accessories, and extended service
tools, the team identified ­warranties under the Genuine Ford Parts, Ford Custom Accessories, and Motorcraft brand names.
root causes before The organization, headquartered in Dearborn, MI, employs more than 166,000 people and operates
developing and testing 70 plants worldwide.
potential solutions.
• By reducing paint One of the organization’s overseas sites is the vehicle operations center in Saarlouis, Germany. This
expenditures, the team facility, located in the southwestern region of the country, is the single-source plant for the 2011 Ford
achieved a $2 million Focus in Europe, as well as a European model called the Kuga. The plant employs 6,500 people and
annual savings.
produces 1,850 cars daily in three shifts.
• Ford entered this project in
ASQ’s 2011 International Identifying Opportunities for Improvement
Team Excellence Award
competition where it
earned finalist honors.
Ford’s balanced scorecard system provides reporting tools that offer monthly values versus target fig-
ures, year-to-date/year-end values against target, and a prioritization system using red/green/yellow
evaluations to pinpoint where improvement is needed. Using this evaluation system, the automaker
classifies data as:

• Green: measures are on or over target.

• Yellow: metrics are under target, but better than last year.
• Red: results are under target.

In the fall of 2009, data for body paint consumption for the Focus and Kuga were classified as red,
thus capturing the attention of plant officials. A quick review of historical data showed basecoat paint
consumption stood at 3.74 kg/unit in 2007, while current consumption was 4.18 kg/unit.

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When improvement opportunities like this are The goals of the project were threefold:
discovered, the organization typically turns to
problem-resolution tools such as Six Sigma, if 1. Reduce costs: Reduce paint consumption to lower production costs.
the following questions regarding the project 2. Improve customer satisfaction: Improve process capability to better meet
result in affirmative answers: customer needs.
• Does the project have recurring events? 3. Lower environmental impact: Reduce solvent consumption to achieve a
• Is the scope of the project narrow? better VOC balance.
• Do metrics exist? Can measurements
be established in an appropriate amount Every Six Sigma Black Belt project at Ford starts with a standard project charter,
of time? which includes an evaluation rating on the estimated impact of the project’s tar-
• Do you have control of the processes? gets. The team predicted the degree of impact for each goal by measuring
• Does the project improve customer anticipated benefits against organizational goals and measures. They determined:
satisfaction?
• The degree of impact for cost reduction was high, as $1.5 million could be
Based on the affirmative answers, Ford officials saved annually.
selected this improvement opportunity as a • Customer satisfaction impact was medium with a target of 127.000 ppm
Six Sigma Black Belt project, offering an ideal
(defective parts per million) reduction.
fit with the One Ford strategy that focuses on
“working together effectively as one team.” • Environmental impacts were also medium with a projected 50.000 kg
annually in VOC savings.
Using the DMAIC Model
to Improve Quality Table 1—Team members and their roles in the project
The project began in October 2009 with team Team Function Team Role Task and Involvement
member selection. Of the plant’s 7,000 employ- M. Fischer Engineer Black Belt Lead the project
ees, more than 50 are Six Sigma Black Belts and Data plan
another 400 are trained as Green Belts, thus Tools and methods
­providing a pool of qualified team members
A. Eisele Master Black Belt Master Black Belt Input of experience
to assist with the project. Team leader and Six
Coaching by tools and
Sigma Black Belt Martin Fischer based his
methods
selections on a candidate’s responsibilities,
R. Höfner Area manager Project champion Provide resources for
­subject-matter expertise and process ownership,
project
and on relative need throughout project develop-
R. Schmitt Maintenance Process owner Provide resources for
ment, planning, implementation, and follow up.
project
Other factors included communication skills and
H. Nagel Engineer Production, subject- Test trials from
the candidate’s ability to interact in a team-
matter expert production side
based structure. The 12 team members are listed
W. Kretschmer Engineer Engineering, subject- Consumption recording
in Table 1.
matter expert Research for automatic
Define equipment
S. Schmidt Foreman Maintenance, subject- Test trials and research
Applying the define, measure, analyze, improve, matter expert
and control (DMAIC) approach, the team began J. Buchholz Foreman Maintenance, subject- Test trials and research
by defining project stakeholders using a suppli- matter expert
ers, inputs, process, outputs, customers (SIPOC) F. Scholtes Foreman Maintenance, subject- Test trials and research
analysis. This analysis led to three groups— matter expert
internal, external, and a mixed group that U. Michelbach Foreman Maintenance, subject- Test trials and research
contained both internal and external customers. matter expert
The mixed group included not only customers S. Bronder Financial analyst Financial analyst Cost-benefit analysis
who purchase the cars, but also internal customers J. Pink Superintendent Product expert Test trials
such as the process owners, in this case the paint (responsible Material properties
shop and the quality control group. manager)
supplier

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Table 2—Tools used in the measure phase
Value-Stream Mapping Brainstorming Cause-and-Effect Diagrams Statistical Data Trend Analysis

How Visualize the paint flow Free flow of ideas Display all potential causes Collect data and analyze Review consumption data
and application equipment from the brainstorming to discover past events

Who Customer All stakeholders All stakeholders Maintenance Supplier

Production Buyer/controller Final inspection
Maintenance Production Production

Why To understand streamlining To help a group To help the group To collect data and select To display historical
work processes using tools create as many ideas consider all possible appropriate analysis tools data to determine the
of lean manufacturing as quickly as possible causes of the problem many attributes

Measure Improve

Several tools were used early in the measurement phase, as listed The team used a variety of tools to develop solutions/improvement
in Table 2. For example, value-stream mapping served as a actions to address the two likely root causes. Value-stream map-
visual tool to help the team understand the flow of material and ping and benchmarking activities proved useful in the search for
the paint application process. Statistical measures helped them a manual solution to monitor the valve. On the other hand, while
filter, evaluate, and obtain strong data for the project. Cause-and- zeroing in on the robot issue, the team reviewed the value-stream
effect diagrams were useful for identifying the root causes of map and discovered they could change the automatic process to
consumption and performance issues, and brainstorming sessions a manual one for painting the liftgates. Also, through research
were used to rate all potential causes. and discussions with suppliers, they realized the plant could
apply paint more efficiently by upgrading to an electrostatic
The next step was creating a data collection plan to help narrow paint application process.
the list of potential root causes by focusing on the following fac-
tors or critical Xs: When selecting final solutions, the team was cognizant of the
overall project goals—improved customer satisfaction, reduced
1. Daily basecoat consumption. Is there any dependency based costs, and decreased VOCs.
on day or shift?
2. Paint film thickness check. Is there an increase, and if so, why? Based on the outcome of the analyze phase, four potential
3. Consumption per robot (automated painter). Are there improvement actions were identified for the defective solvent
differences, and if so, why? recovery valve factor:
4. Consumption per manual painter. Monitor consumption to
1. Replace plastic valves with stainless steel valves.
check the process capability.
2. Create an automatic recovery valve check system.
5. First-time through rate versus consumption. A low rate
3. Check the valves weekly.
means more repairs, which translates to higher basecoat use.
4. Eliminate the solvent recovery process.
6. Application equipment. Check for damages or technical
problems. The team used four primary methods to select the final improve-
ment actions: test trials to evaluate stainless steel valves against
Analyze plastic valves, technical research to develop an automatic recov-
ery valve check system, brainstorming and value-stream
The Six Sigma team conducted a 5 Why analysis, as well as test
mapping to determine the effectiveness of a weekly valve check,
trials on the six potential root causes. The results showed that
and the elimination of the solvent recovery process.
factors one, two, four, and five were not significant. Factor three,
consumption per robot, showed an increase for the liftgate robot. One of the test trials involved comparing the durability of the plas-
Through testing of factor six—application equipment—the team tic versus stainless steel valves in the solvent recovery process.
discovered a damaged solvent recovery valve that warranted fur- The test revealed a 48 percent higher mean durability by switching
ther investigation. Additional testing uncovered that a defective to a stainless steel valve. During a brainstorming event, analyzing
solvent recovery valve was causing a direct paint flow from the the value-stream map of the critical areas of the process led to a
color changer to the recycling tank, thus increasing consumption. decision to change the critical valves before the defect possibility
Normally, the solvent recovery valve opens only for the cleaning rate reached 5 percent. Then with a durability test run, the team
program to bring the cleaning solvent back to a recycling tank. determined how long it would take to reach the 5 percent rate.

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The test results revealed that a quick, inexpensive change from Albert Eisele, Six Sigma Master Black Belt for the project,
plastic to stainless steel valves would result in a 45 percent perfor- ­attributes the team’s success to using Six Sigma methods, such
mance improvement. Testing also demonstrated that an automatic as the DMAIC approach, as well as great teamwork.
recovery valve check system would be cost effective and could
offer an effective error-proofing device. The other two solutions In addition to the tangible benefits, the project also delivered
were rejected because conducting weekly valve checks was too impressive intangibles, including the implementation of a
costly, and eliminating the solvent recovery process was not in ­monitoring system that provides a full overview of processes
line with the organization’s environmental standards. and improved morale among maintenance workers because
of job enrichment.
For the liftgate robot factor, three potential solutions were identified:
Control
1. Develop a new cleaning program.
2. Change the robot process to a manual paint application. The new monitoring system and standard operating procedures
3. Upgrade to an electrostatic paint application. are vital to helping the Saarlouis plant sustain the results gained
in this project. This system provides a real-time view of paint
Testing focused on improving the existing cleaning program and consumption in detail for each of the four paint booths. All of
then comparing the consumption data from the robot process to the plant’s standard operating procedures are part of the plant’s
a manual process. The team also created a cost-benefit analysis ISO 9001 compliant quality management system and are there-
for an upgrade to an electrostatic paint application. Tests fore included in routine audits. This helps assure that paint
showed there was no significant difference between the old and consumption will remain within specifications.
the new cleaning program. But, by simply changing to manual-
only painting processes for interior painting, it was estimated Sharing Lessons Learned
that Ford could save 0.28 kg/unit. Finally, the team also deter-
mined that upgrading to an electrostatic paint application system Because of the project’s results, Ford’s global Six Sigma
would not be cost effective. ­organization nominated the team to compete in ASQ’s
International Team Excellence Awards (ITEA) process.
Once the solutions were finalized, the team created a three-step The project earned finalist honors, and team members had
implementation plan that included the following steps: the ­opportunity to present their project at the 2011 World
Conference on Quality and Improvement.
• Think: Plan all necessary implementation activities.
• Act: Implement the solutions. Eisele says this project was a strong candidate for the competi-
• Control: Check if solutions were correctly implemented. tion because it was a cross-functional team that included
members from production, maintenance, quality, manufacturing
Yet another critical element in the project was overcoming engineering, and the supplier: “They worked together as a team
­stakeholder resistance to the solutions. This was accomplished in an excellent way, proving the power of a team and the sum of
through effective relationship building as well as providing data, competencies in a team.”
training, and opportunities to discuss the project solutions.
For More Information
Reducing Consumption, Improving Satisfaction
• To learn more about this project, contact Albert Eisele at
Once the solutions were implemented, the team achieved every [email protected] or Martin Fischer at [email protected].
project goal and even exceeded the expected cost reduction by a • Complete details on ASQ’s ITEA process are available at
half million dollars annually, as shown in Table 3. More specifi- http://wcqi.asq.org/team-competition/.
cally, in meeting these goals, the basecoat paint consumption • Visit http://asq.org/2011/09/design-of-experiments/
dropped from 4.18 kg/unit to a mean consumption of 3.3 kg/unit. ford-team-project-builds-relationships.html to read a case
study from another Ford team that qualified as a finalist in
Table 3—The team exceeded all project goals the 2011 ITEA process.

Goal Target Result

About the Author
Reduce costs $1.5 million annually $2 million annually
Improve customer 127.000 ppm 129.000 ppm Janet Jacobsen is a freelance writer specializing in quality and
satisfaction reduction reduction compliance topics. A graduate of Drake University, she resides
Reduce environmental Lower VOCs by VOCs reduced in Cedar Rapids, Iowa.
impact 50.000 kg annually 70.000 kg annually

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