Making the Case for Quality

May 2016

Process Management Approach

Reduces Scrap, Saves Alcoa Millions
by Janet Jacobsen

As Alcoa Power and Propulsion sought to minimize manufacturing process waste,

At a Glance . . .
A team at Alcoa Power
and Propulsion sought
to improve product
quality, reduce waste and
inefficiency, and cut costs.
To achieve these goals,
the team developed
and implemented a
structured process
management approach
across the business unit.
By defining and then
standardizing key
processes, the unit
minimized variation,
shared best practices, and
sustained improvements.
The project improved
customer satisfaction,
reduced costs of poor
quality, and saved
millions of dollars.
The team was named
a finalist in ASQs
2015 International
Team Excellence
Awards competition.
inefficiency, and related expenses, two key findings caught the attention of the
business units executive leadership team. Customer satisfaction surveys revealed
60percent of respondents held an unfavorable or neutral opinion of the unit, while
at the same time, internal quality measures revealed the business unit recorded the
highest levels of scrap in the organization for the year. The findings represented
a significant opportunity, but improvement would require rapid deployment in a
methodical, deliberate, and sustainable manner.
About Alcoa Power and Propulsion
Alcoa Power and Propulsion (APP), a unit of New York City-based Alcoa Inc., is divided into three
segments: structural castings and special products, industrial gas turbine airfoils, and aerospace airfoils.
This business unit serves the defense, energy, aerospace, and industrial markets, where its products
are used in military and commercial aircraft engines as well as power-generation turbines. Additional
products and services include molds, hot isostatic pressings, specialty coatings and tools, as well as
machinery. APP operates 25 production facilities around the world, employing more than 9,000 people.
Working to Improve Processes
The APP leadership team discovered scrap and rework issues were resulting in high customer claims
and delivery issues, therefore they sought solutions for significant reductions to scrap levels to improve
delivery, rework, and customer satisfaction. In the past, substantial scrap level decreases were thought
to be unattainable because casting is a particularly complex process (see the sidebar, The Investment
Casting Process, for more details) with many sources of variation.
In late 2011, APPs quality focus shifted toward sustainable and continuous process improvement,
particularly at nine of the units super alloy foundries (five in the United States, three in Western
Europe, and one in Japan). While these foundries were the starting point for the initiative because
they recorded the highest levels of scrap, the ultimate goal for APP was to create a sustainable solu-
tion for deployment at the plant level by mid-2012. The right solution would need to capture and

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THE INVESTMENT
CASTING PROCESS
The majority of APPs business is related to
its investment casting process, which includes
the following steps:
APP receives a design from one
of its customers, and through a
collaborative process, the proper
shape of the casting is determined.
A die is constructed, usually in
wax, to produce the pattern.
This wax die is then assembled
into a cluster to produce multiple
castings economically through a
single pour of molten alloy.
The wax cluster process continues as
a ceramic slurry is applied, followed
by ceramic sand, and then into
the controlled drying step until the
desired shell thickness is achieved.
The wax is then melted out and the
resulting shell is fired to create a hard
ceramic ready for casting. Selective
insulation that eliminates casting
defects, such as micro-shrinking, may
be applied at this point before the
shell proceeds to the casting stage.
During the casting step, metal is melted
under vacuum to maintain purity.
Once melted, the mold is loaded
through a vacuum-lock system.
After the mold is cast, the gating
is removed and the castings move
through the post-cast operations
and quality inspection.
Once approved, the certified casting
is shipped to the customer.
This is the casting portion of
the investmentcasting process.
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communicate tribal knowledge as well as monitor capable processes. Creating
a new approach could directly impact financial performance by reducing scrap,
rework, and returns.
Identifying Stakeholders and Building the Team
One of the first steps in forming a project improvement team was to identify
stakeholder groups from which team members would be selected. The following
stakeholders were included:
Internal groups:
engineering Figure 1: Desired Scrap Trend Across APP
process owners,
business unit and
site managers,
operations
personnel, and
members of the
Percent
quality staff.
External groups:
Alcoa and the
business units
customers.
Once these groups
2011 2012 2013
were determined and Year
the required knowledge
and skills for each group identified, skill and knowledge gaps were identified. For
example, the engineering process owners needed training on the DMAIC method,
while the quality group required additional training on the audit process. Corporate
quality staff provided introductory training on the organizations process manage-
ment methodology, and APP created a Six Sigma training class for its engineers.
It made sense to build upon already-existing team structures and working relation-
ships at APP where there are business unit process owners and corresponding plant
process owners. The improvement projects deployment team included members
from these process owner groups.
The project goal was to develop a sustainable methodology to reduce the APP scrap
rate by 10 percent year over year by June 2012, as depicted in Figure 1. The team
was to develop manufacturing process models for key areas, validate the methodol-
ogy at pilot locations, and then prepare a full implementation plan.
Analyzing the Opportunity
When analyzing the improvement opportunity at hand, the team quickly realized the
part-focused scrap reduction methodology, which had been used for years, reached
the point of diminishing returns. To achieve the additional scrap reductions required
to meet the stated goal, process stability became the new focus.
Since the investment casting process includes several complex steps, the team cre-
ated process maps to identify, understand, and analyze each step for its savings
potential. Pareto charts helped illustrate the contribution of each step to the overall
scrap rate. Brainstorming, scrap rates, and defect data were used to identify potential
 improvement opportunities within the
process. In addition, the team utilized
scrap rates at each APP location to
search for potential savings.
Scrap by point-of-cause data was analyzed
within each process area to determine
which processes held the greatest savings
potential. In addition to pinpointing spe-
cific processes for improvement, quality
tools such as Pareto analysis were also
useful in determining which plants to tar-
get for early implementation.
At the outset, the project scope was
quite broadglobal business unit scrap
reductiona hefty challenge. After
reviewing the data and securing buy-in
from leadership, the improvement team
narrowed the scope to focus on the great-
est opportunitiesthe wax, shell, and
cast manufacturing operations of nine
Figure 2: Potential Implementation Approaches for Process Management Directive
Traditional plant-based approach
Independent process maps
Independent plant projects
Plant 1
Plant 2
Plant 3
Wasteful duplicated efforts
Poor leveraging
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selected locations. Although the scope
was now more narrowly focused, the
challenge was still immense, requiring
the engagement of the entire operation.
At this point, team membership grew
to include additional process owners,
engineers, quality staff, operations,
and leadership personnel from plants
involved in the project.
Developing Solutions
Because the nine APP locations for this
improvement initiative were located
around the world, it was imperative to
create a cohesive language that could tie
all the foundry processes together. This
common language was necessary for not
only deploying the methods and tools,
but also identifying the key operations
and sub-processes at various plants for
comparative and benchmarking purposes.
Integrated BU-wide approach
Common process map template
Coordinated pilot plant projects
Plant 1
Plant 2
Plant 3
Process-mapping exercises, shop-floor
interviews, brainstorming sessions, and
benchmarking studies generated data
to help develop potential solutions.
The data was first used for comparing
Alcoa plants with similar processes and
improvement requirements. The com-
pany saved $20 million at seven Alcoa
plants that had implemented process
management initiatives. These results
inspired the improvement team to pursue
a similar approach within APP.
The left portion of Figure 2 depicts a
typical plant-based approach to process
improvement where efforts are confined.
In contrast, the right side of Figure
2 shows how an integrated approach
involving plants throughout the BU
enables the sharing of approaches with
common templates and coordinated
plant projects. The new approach would
Pilot efforts well-supported
Efficient local leveraging
 leverage one plants independent ideas by sharing its
solutions across the entire business unit to spur global
improvement. This business-unit approach also enabled
process owners to transfer technical details through a
common language that was lacking in the past, and to
build a collaborative culture.
The team developed a three-stage plan to implement
its process management approach. The first stage
involved pilot plants; the second fast-follower plants;
before finally, implementation to a broad business-unit
approach. This three-stage rollout provided data that team
members used to validate the efficiency and speed of the
shared and integrated approaches.
The key to incorporating solutions throughout the busi-
ness unit was a structured, common process model, which
incorporates the tools recognized as the best-suited means
to get processes in control, and to identify key operations
and sub-processes at multiple plant locations. Utilizing
this process management approach, as illustrated in
Figure 3, would increase sustainability through manage-
ment review, quality audits, rigorous control plans, and a
focus on the correct variables.
The process management solution was validated through
the pilot and fast-follower stages. For example, one of
the pilot-stage plants deployed a new casting/mold wrap
process and demonstrated a 30 percent reduction in
related scrap in just three months. Then a fast-follower
plant used the same new process as the pilot plant and
achieved similar scrap reduction results, but this time
within just 30 days. This demonstrated that lessons
learned at one plant advance the process management
efforts at other locations when similar process improve-
ments are implemented.
Figure 3: Alcoa Process Management Approach
Identification of Initial
key processes and
assessment
process managers
Yes In control,
capable, and
sustainable
No
Process
improvement
Audit and
Sustain
the gains management
review
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Overcoming Resistance
During the teams initial analysis members discovered a few areas of
resistance, including:
Concerns regarding the availability of resources, particularly
the ability for employees to handle the new initiative while still
meeting production goals.
Stakeholders at various levels lacked a sense of urgency and
showed some hesitancy about making changes.
Because the process management approach was a nontraditional
method for reducing scrap, a change in culture would be essential
to inspire employees to embrace the new process-focused method.
The team understood providing information and education was vital to
achieve positive change, so the process management model includes
routine communication such as holding team-building meetings and shar-
ing monthly process audit databases. Resistance was also mitigated by
engaging the entire workforce in the new process management approach.
Examples included employees who helped by defining improvement
opportunities, planning and prioritization activities, participating in kai-
zen events, as well as establishing and executing control plans.
Exceeding Goals and Realizing Additional Benefits
Once the pilot and fast-follower stages were completed, APP imple-
mented the process management model throughout the business unit.
While the initial project goal was to reduce scrap by 10 percent year
over year, those expectations were exceeded by more than $20 mil-
lion in improvements from the three key areas: wax, shell, and cast.
Tyrus Hansen, APP team lead, said reductions in scrap and other
costs of poor quality continue year over year, as highlighted in APPs
Quality Index, shown in Figure 4.
Specific examples of dramatic cost savings include:
A 77 percent improvement in wax expenses in one department at
one plant, which resulted in a $38,000 annual savings.
A sub-process involving shell weight control to reduce material
costs at one production facility resulted in a 21 percent
improvement and an annual savings of $400,000.
A sub-process of the cast/wrap step reduced scrap and rework
expenses by more than 30 percent, approximately $750,000, at
one location.
Not only did the new approach lower scrap rates, but it also reduced
rework activities and customer returns, leading to more on-time deliv-
ery and higher levels of customer satisfaction. At the outset of this
project, all nine plants involved in the pilot were rated in the poor
performance category, but since that time, all of the manufacturing
locations have fully integrated the process management approach.
An unexpected benefit of the work was an improved workforce devel-
opment. Many team members completed training and then gained
 Sharing the Teams Story
Figure 4: APP Quality Index Trend from 2012 to 2015
The team has devoted a great deal of
Represents millions
of dollars of opportunity time in sharing its success story with
others. Within Alcoa, the model used in
GOAL this project now serves as the corporate
reduction GOAL
from 2012 Reduction reduction standard and is being applied at various
7.74% from 2013 GOAL
from 2012
6.59%
Reduction Reduction locations and business units around the
17.24% from 2013 reduction from 2014
9.23% from 2014 globe with similar results. The teams
2.11%
19.22% effort was also highlighted at the 2014
Alcoa Corporate Process Management
Network Conference and was a can-
didate in the 2013 Alcoa Corporate
Impact Award Competition.

At the prompting of Alcoas cor-

porate quality department, the team
Actual Projected Actual Projected Actual Projected Actual
2012 2013 2013 2014 2014 2015 2015 entered its project into the ASQ 2015
International Team Excellence Award
valuable experience with basic problem-solving toolsnew skills that enabled employ- (ITEA) competition. The project was
ees to operate in a more proactive, process-focused manner. named a finalist, and this recognition
enabled members of the team to share
Members of the improvement team learned valuable lessons throughout the project, but APPs proven process management
Hansen said the biggest lesson centered on discipline as team members realized, If we approach during the World Conference
maintain the discipline, quality will improve, he said. The proactive work minimizes on Quality and Improvement.
the time spent managing problems and fighting fires.
For More Information
Sustaining the Momentum
For additional information on
The APP process management models for the wax, shell, and cast operations were Alcoa Power and Propulsion,
revised to reflect the new approach. These models were deployed through the process visit the organizations website at
owner group at each APP location. Results are measured and reported at the process www.alcoa.com.
and sub-process levels with metrics directly linked to each locations business case. To learn more about this project
Reports and feedback soon became more proactive and process-focused rather than from a team interview, watch this
reactive and problem-focused as was the case before this improvement initiative. video http://videos.asq.org/alcoa-
six-sigma-and-teams.
To ensure the new process management approach remains sustainable and continues to To view more examples of
perform to expectations, APP implemented a number of controls, including: successful improvement projects in
quality, visit the ASQ Knowledge
The business case must drive all activities associated with this approach and the
Center at asq.org/knowledge-center/
activities are measured for impact.
case-studies.
A reporting structure was created to communicate specific details on a regular basis.
Learn more about the International
All efforts are recorded and included in the business unit manuals and audit tools.
Team Excellence Award Process
As APP continued to implement the process management approach, the business unit by visiting the official website at
realized further benefits, such as: asq.org/wcqi/team-award/index.aspx.

By emphasizing control of the entire process, additional operators and supervisors About the Author
are engaged in more proactive roles.
The workforce is more satisfied and engaged due to greater stability, education, Janet Jacobsen is a freelance writer
andstructure. specializing in quality and compliance
With fewer daily firefighting activities, time to focus on key process metrics for topics. A graduate of Drake University,
employees increases, triggering reactions before issues become scrap problems. she resides in Cedar Rapids, IA.

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