Client
Infineon Technologies
Role
Project Lead
Discipline
Process analysis

Material loss was visible in total, attributable to nobody

What was achieved

Cost savings
77%
Reduction in material usage variance
Cost avoided
$X00,000
Potential savings on material replacement and sourcing
Process improved
62%
Increase in productivity post training and machine servicing

Material loss was measured in total but never traced to a machine, shift or operator, so spending was aimed at the wrong cause.

What I personally did on this

Owned
The study design · the statistical analysis · root cause
Led
The training and machine-servicing actions that followed

A method, where there had not been one

What existed before
  • No comparable unit. A shortfall of 300 read the same on a plan of 100 and a plan of 5,000
  • Loss known in total, attributable to nobody. A number on a report with no owner
  • No test for which factor mattered. Equipment, operator and material were all suspects, and all opinions
  • Ranking by the total column, which pointed at the material with the best median in the plant
  • Nothing the client could re-run after the analyst left
What was delivered
  • Point of Magnitude — a new unit that makes any two runs comparable regardless of batch size
  • A gated decision path: normality test, then the right significance test, then boxplot and interaction
  • A work instruction manual with the procedure and the principles behind it, so it runs monthly without an analyst
  • A ranked five-item shortlist with recommended interventions against each
  • An explicit do-not-touch on the material that had been the prime suspect

Where the bottleneck lived

Before
Material variance lands on the monthly report
⚠ Bottleneck Three suspects, no way to test them equipment · operators · material · budget aimed at the material
Loss repeats next month
After
Same historical records
✓ New unit Point of Magnitude makes a 100-unit run comparable to a 5,000-unit run
✓ Statistical gates Names equipment and pairings and clears the material at P = 0.073
✓ 77% removed 3 pairings retrained 2 machines serviced · no plant-wide programme
Ongoing, without us
Month ends
✓ One manual Staff re-run the method procedure plus the principles behind it
✓ Control chart Drift caught before it becomes a loss no investigation needed

What shaped the decisions

The finding the whole project turns on

Volume is not severity. One material carried 72% of total deviation, and had the best median in the plant. The column everyone was reading pointed at the innocent suspect.

What they needed, and why it mattered

Five requirements. Each one has a business consequence attached, and each consequence shows up in the numbers at the top of this page.

  1. 01
    Make a small run and a big run comparable
    Losing 300 units against a plan of 100 is a disaster. Losing 300 against a plan of 5,000 is a rounding error. The existing measure treated them as identical.
    Until this was fixed, every ranking was wrong and any money spent would have gone to the wrong place.
    Derived requirement · the blocker to every other step
  2. 02
    Answer their actual question: machine, person, or material?
    Those were the three suspects the client named. All three had to be settled with evidence rather than opinion.
    A clean answer on all three is what let them stop guessing and cancel the material programme.
    Client-specified
  3. 03
    Use records they already had. Touch nothing on the line
    No new sensors, no instrumentation, no production stoppage to run the study.
    Zero capital spend and zero lost output to find where the money was going.
    Constraint
  4. 04
    Leave them the ability, not just the answer
    The word "simple" appears in the objective, the scope and the deliverables. Three times. They were buying a capability they could keep.
    No repeat consulting fee. The next loss gets found in-house instead of costing another three-month study.
    Client-specified · stated three times
  5. 05
    Say where to spend, and where not to
    A shortlist is only useful if it also removes things. Clearing a suspect is worth as much as naming one.
    The "do not touch" line is what protected the six-figure material budget.
    Derived requirement

First I had to fix the unit

Raw deviation is not comparable across batch sizes, so I defined a measure that is.

The same two runs, before and after the new measure
RunPlannedDeviationPOMRead as
Run A100−300−3.00Severe
Run B5,000−300−0.06Minor
DMAIC applied to material usage deviation
Data prep  →  Deviation  →  Point of Magnitude  →  keep only unfavourable
                                        ↓
                              Normality test
                              ↓              ↓
                          normal?        not normal?
                              ↓              ↓
                           ANOVA      Kruskal-Wallis
                              ↓              ↓
                        Significant factors onlyBoxplot + interaction plot  →  ranked actions
01
Prepare and score. Clean the records, compute deviation, convert to POM, keep only unfavourable runs.
02
Test the distribution. Anderson-Darling. If the data is normal, use ANOVA. If it is not, use a non-parametric test.
03
Find what matters. Kruskal-Wallis across all three client factors. Keep only the significant ones.
04
Find where it lives. Boxplot and interaction plot on the survivors, to separate the factor from the pairing.
05
Rank and hand over. Pareto shortlist, recommended interventions, and a manual so it can be re-run without us.

Five gates, each one narrowing the search

Every step asks one question, answers it with a chart, and only then moves on. Nothing advances on opinion.

01Is the data normal?
Anderson-Darling probability plot of Point of Magnitude
Anderson-Darling probability plot on Point of Magnitude
What it showed

The points bend away from the fitted line and P falls below 0.005. The data is not normally distributed, so ANOVA would have been the wrong test to run.

N = 51Mean −0.7821StDev 0.9452AD 4.411P < 0.005

Decision: switch to Kruskal-Wallis, a non-parametric test, rather than report a result the data cannot support.

02Which of the three factors actually matter?
Kruskal-Wallis — significance threshold P < 0.05
FactorHDFPVerdict
Equipment30.36140.007Significant
Operator26.52110.005Significant
Material type5.2320.073Not significant
What it showed

Two factors survive. The material does not. That single row is what cancelled a costed investigation.

Ranking by total deviation would have said the opposite. Material Group 2 carried 72% of all deviation — but it appears in 29 of 51 records, and its median is the best of the three groups. High volume, low severity.

Volume is not severity. The column everyone was reading pointed at the innocent suspect.

03Which machines?
Boxplot of Point of Magnitude grouped by equipment
Point of Magnitude distribution by equipment
What it showed

Equipment 108 and 109 carry the widest spread of any machine on the line. Wide spread means unpredictable, and unpredictable is what forces a material buffer.

Decision: both go on the service list, alongside Equipment 71 which showed very high deviation under one operator.

04Which operators?
Boxplot of Point of Magnitude grouped by operator
Point of Magnitude distribution by operator
What it showed

Three operators separate clearly from everyone else, both in range and in worst case. At this point the obvious conclusion is that three people are the problem.

That conclusion is wrong, and the next gate is what proves it.

05Is it the person, or the pairing?
Interaction plot of operator against equipment
Operator against equipment — the lines cross, which is the whole finding
What it showed

None of the three was worse everywhere. Each failed on specific machines and ran normally on the rest. Only an interaction plot separates those two facts.

Where each operator actually failed
OperatorRuns
over plan
SeverityMachines it happened onWhat the data showed
A6Critical108 109 140Averaged −2.0 POM on half its runs. Worst on both range and worst case
B4High110 71Inside the Pareto top 20%. Equipment 71 carried very high deviation
C4Contained140Outside the Pareto top 20%. One machine only, fine on every other
Three pairings1427% of the failures, 77% of the loss
Why this is the finding, not a footnote

Operator C failed on one machine and was fine on every other. Fire C and the loss stays. Retrain C on machine 140 and it goes. You do not remove the people. You fix the pairing.

77%, and it reconciles exactly

Retraining three operator-and-machine pairings and servicing two machines removed 77% of total material over-use. That figure is not an estimate laid over the study. It reconciles against the measured population, line by line.

Reconciliation to the measured 51-event population
GroupEventsAvg POMTotal POMShare
The 3 pairings + 2 machines142.1930.777%
Everything else370.259.223%
Measured population510.78239.89100%
Why the reconciliation matters

The bottom row is the study's own measured mean and total. The split reproduces both. And 2.19 sits directly on the documented behaviour of the worst pairing, which averaged 2.0 POM on half its runs.

The 23% left over, and why we stopped

The remaining 23% is 37 events averaging 0.25 each. Low severity, spread thin, no single owner.

That is why the plan ends with control charts and a monthly re-run rather than another study. The method tells you when to stop investigating.

Why training was the right lever

The gap was behavioural, not material

Material type tested insignificant. Equipment and operator both tested significant, and the effect concentrated in specific pairings. A machine that runs clean for one operator and badly for another is not a broken machine. It is an unwritten technique difference at the withdrawal step.

Why 14 events carried so much

Severity, not frequency

Those 14 events are 27% of the population but 77% of the loss, because they run nearly nine times worse per event than the remaining 37. That ratio is the entire argument for Point of Magnitude. Counting events would have ranked them almost last.

Where 77% sits against the Pareto forecast

Pareto analysis run during the study put the top 20% of contributors at five named items and forecast that they drove roughly 80% of the outcome.

The measured result came in at 77%. The forecast was slightly optimistic, which is what you would expect — Pareto is a rule of thumb, not a measurement, and the residual 23% is real.

The value of the forecast was never its precision. It was that it named which five, before any money was committed.

What produced each result

Three deliverables, and each one maps to a number at the top of this page.

Produced the 77%

A ranked critical-areas list

Five named items with recommended interventions. It told the plant exactly which three pairings and which two machines to touch, so the fix was surgical instead of plant-wide.

Produced the $X00,000

A method that can clear a suspect

Repeatable deviation analysis, gated at every decision so the answer is never an opinion. It proved material type insignificant at P = 0.073, which is what cancelled the replacement and re-sourcing programme.

Produced the 62%

A targeted intervention, not a programme

The interaction finding turned "three operators are bad" into "three pairings need work". Retraining and machine servicing at those points is where the productivity gain came from.

And the one that kept producing after we left

A work instruction manual — the procedure plus the principles behind it. The plant re-runs the analysis itself, so the next loss does not need another three-month study or another analyst.

The most valuable line in the report

Do not re-qualify Material Group 2. Telling a client what not to spend money on is worth more than another chart.

Part two of two

How it was actually done

Everything above is the business read. Everything below is the method, the statistics, and the reconciliation that makes the 77% checkable rather than assertable.

!Before you open this

Everything above is the bottom line. If that is what you came for, you already have it.

What follows is the full working: 4 diagrams and 7 sections of working, the analysis behind each decision, and why it went that way instead of the obvious way. It is long on purpose. It is written to be checked, not skimmed.

Only wanted the overview? Stop here. You will not miss a single result — every number is already above this line.