1. Demystifying Lean Six Sigma: Why the emphasis on Continuous Process Improvement? Vance A. Kinsey, CPT LSS Master Black Belt
ICONS
Note that Lean Six Sigma is often abbreviated LSS and Continuous Process Improvement is abbreviated CPI.
Presentation to
ASQ Chapter Meeting
15 April 2009

2. My Journey Scientific & Engineering Interest/Aptitude
Trainer….but training was not the answer
Supervisor/Manager….discovered the “system” (Good people, bad system—who wins?)
Education….Adult Learning
….but education was not the answer
Consulting….helping others achieve their goals
Human Performance Technology….CPT (people)
Lean Six Sigma….MBB (process)
Leadership….Strategic Transformation; helping organizations discover/achieve their goals

3. Agenda
Why address process improvement History of Process Improvement--beginnings of the three basic principles Underlying principles of Lean, Six Sigma and Theory of Constraints including tools and techniques Roles and Responsibilities/Certifications and Standards of LSS/CPI practitioners
Deployment Strategies to integrate the practices successfully into an organization

4. WIIFM?
As a Quality Professional, why am I concerned about Lean Six Sigma and/or Continuous Process Improvement?
Is it a threat or an opportunity?
And what is it anyway?
*Note the obvious corollary to strengths and weaknesses. S&W are internal; O&T are external.

5. Managing Expectations—Project Nightmare
How the customer explained it
How the project leader understood it
How the analyst designed it
How the programmer wrote it
How the consultant described it
How the project was documented
What was installed by operations
How the customer was billed
How the project was supported
What the customer really needed

6. The First Step is the Hardest

7. How many of you have heard…?
We don’t
manufacture
anything!
How many of you have heard…?
We’ve already done this!
I don’t like it!
Isn’t this another
“flavor of the month”?
We’re too busy!!!
We don’t have
the money!!!!!
NEWS FLASH:
ALL OF THESE THOUGHTS
ARE NORMAL!
We’re different!
Our leaders won’t
support it!
We don’t have
processes!
How can I impact
a command-level
process?
It’ll never work here!
We’re not broke; we
don’t need fixing!!!!
I don’t want it here!
Our processes only
happen “on demand”
I don’t want it!

8. CPI/LSS has “borrowed” best practices from all of these initiatives
PERFORMANCE IMPROVEMENT REFERENCE LIBRARY
CPI/LSS has “borrowed” best practices
from all of these initiatives

9. CPI/LSS is…
Rigorous adherence to proven methodologies, tools and techniques that will enable a leader to confidently solve process problems using data-driven approaches so that the problems stay solved.

10. It IS a philosophy to address and correct problems.
CPI/LSS is NOT…
Another management program.
A justification for buying new equipment, spending more money, or hiring/firing people.
It IS a scalable collaborative process to capture, prioritize and address all concerns of customers, suppliers and stakeholders.
It IS a philosophy to address and correct problems.
It IS a low-cost approach to identify and implement appropriate changes to meet specific goals.
It DOES require supervisors, managers and leaders to make good decisions.
A substitute for good leadership.
A “one-size fits all” solution.

11. Why now?
We’re still the best, most advanced and most productive economy in the world, so…
Why is process change important now?
What is the “burning platform”?
Who is championing the need for change and why?

12. Why Lean Six Sigma as our CPI model?
Common language
Common practice
Shareable resources, personnel
Used by business & industry, government & military, and academia (including their consultants)
Benefits can be compared and collected
Rigorous, standardized training and certification process

13. Appropriate methodology for all types of processes
Examples of areas that can be significantly improved:
Transactional/administrative process (takes too long)
Personnel overworked; multiple unnecessary steps (wasteful)
Document review process (inconsistent)
Unhappy customers & workers
Cuts, shortfalls, and downsizing
Ineffective management controls; inspections, oversight, surveillances, audits, reviews
Changing customer demand

14. There may still be pockets of resistance or suspicion

15. Integration of three disciplines
Focus of TOC
Value Stream
Speed of Lean
Customer Value
-6   
Accuracy of Six Sigma

16. History of Lean, Six Sigma, & TOC
Roots of Lean: back to early 1900’s
Henry Ford: continuous flow production, waste elimination
TWI: (Training Within Industry),
Kiichiro Toyoda and Taiichi Ohno: low inventories, flexibility & responsiveness
U.S. supermarkets: pull systems
Shigeo Shingo: mistake proofing, reduced set up times (SMED)
Toyota Production System
MIT and James Womack: brought Lean back to U.S.
Eli Goldratt: published book “The Goal”, early 1980’s (TOC)
Motorola & others: developed Six Sigma early 1990’s
NIKE

17. DMAIC - The Process for Process Improvement
P D
SHEWHART
CYCLE
A C
IDENTIFY PROBLEMS
DEFINE
DESCRIBE CONDITION
MEASURE
LIST POTENTIAL CAUSES
ANALYZE
PROPOSE SOLUTIONS
IMPROVE
PREPARE ACTION PLANS, IMPLEMENT IMPROVEMENTS
CONTROL
VERIFY RESULTS
Long Term Implementation
Document, Communicate and
Identify Replication Opportunities
COMPARE/CONTRAST TO HPSM

18. Same Scope of Impact…Different Starting Point
???
Engineering
Solution
Psychometrics
Manpower
Quantity
Ratings
Seniority
Personnel
Human Factors
Safety
Training
Medical
Habitability
Survivability
Policy
Process
Knowledge
Management
Reward &
Incentive
Standards &
Expectations IT
Ergonomics
Work
Environment
Doctrine
& Testing
Material
EPSS
PC Sim
Job Aide
eLearning

19. Where to use CPI/LSS for Problem Solving
This is where CPI/LSS
Works best.
LEADERSHIP
&
ACCOUNTABILITY
PROCESS
PERSONNEL
PLANT

20. Lean Principles Specify “Value” from the Customer’s Perspective
Map & Analyze the “Value Streams”
Make the Value Streams “Flow”
Enable the Customer to “Pull” Value from the Value Streams
Seek “Perfection”

21. Non-Value Add Hauling Eight Wastes Lean is eliminating waste
T I M W O O D U
Under-utilization
Of Employees
Transportation
Overproduction
Non-Value Add
Hauling
Eight Wastes
Motion
Defects
Waiting
Over-processing
Inventory

22. Within the 8 wastes, time is a significant factor.
The Value of Time
Within the 8 wastes, time is a significant factor.
Disassemble
Transport
Wait
Machine
Machine
Re-Install
Remove From
Ship
Set-up
Inspect
Transport
BEFORE
ANALYSIS
Start
Finish
Broken
Component
TIME
Repaired
Component
= Value-Added Time
= Non-Value-Added Time (WASTE)
Value-added time is only a very small % of the total time.
AFTER
IMPROVEMENTS

23. LARGE The Value of Time amount of time saved Traditional Focus
Improve Value-Added work steps
Better tools, machines, instructions
Result: Small time savings
Time
Amount of
Time Eliminated
Small
LARGE
amount of
time saved
Lean Focus
Make all of the Value Stream visible
Reduce or eliminate Non-Value-Added portions of the process
Result: Large time savings
Note: The focus is not on the value-added steps or the people performing them. Instead, the focus is to remove barriers and better support the people doing the work!

24. “In God we trust, everyone else bring data.”
Six Sigma is eliminating variation
Based on Statistical Thinking
All work is a series of process
All processes have variation
Businesses improve when they reduce or eliminate variation
“In God we trust, everyone else bring data.”
Shift Happens
Process B
Process A

25. What’s the big deal? Hey, 99% is good enough right? 99%
% (6 Sigma)
20,000 lost postal mail items per hour
15 minutes of unsafe drinking water per day
2 long/short landings per day at a major airport
5,000 incorrect surgical operations per week
7 hours of lost electricity per month
20,000 incorrect prescriptions per month
7 lost postal mail items per hour
1 unsafe minute every seven months
1 long/short landing every five years
1.7 incorrect operations per week
1 hour without electricity every 34 years
68 wrong prescriptions per year

26. ---RESOURCE THIS FIRST---
TOC is eliminating bottlenecks
“The slowest vehicle in a convoy sets the pace”
A constraint is anything in an organization that limits it from moving forward or achieving its goal
When the constraint (critical path) is not progressing, the process is not progressing!
If 100 people worked to improve 100 different processes, the 1 person working on the constraint process would save the organization much more than all the other 99 people combined!
---RESOURCE THIS FIRST---

27. One way to put it all together
12 Step Process Improvement Plan
12 Step
1: SIPOC
1: SIPOC
2: BOUNDARIES
2: BOUNDARIES
See the
See the
See the
See the
3: VOICE OF THE CUSTOMER
3: VOICE OF THE CUSTOMER
Process
Process
Process
Process … … … …
4: SET UP THE CURRENT STATE MAP
4: SET UP THE CURRENT STATE MAP
5: WASTE WALK
5: WASTE WALK
See the
See the
See the
See the
6: CREATE CURRENT STATE MAP
6: CREATE CURRENT STATE MAP
Waste
Waste
Waste
Waste … … … …
7: SPAGHETTI MAP / CIRCLE DIAGRAM
7: SPAGHETTI MAP / CIRCLE DIAGRAM
8: FLOW ANALYSIS
8: FLOW ANALYSIS
Breakthrough!!
9: CREATE IDEAL STATE MAP
9: CREATE IDEAL STATE MAP
10: DEVELOP FUTURE STATE MAP
10: DEVELOP FUTURE STATE MAP
Lead the Way
Lead the Way
Lead the Way
Lead the Way
11: DEVELOP FLOW LAYOUT
11: DEVELOP FLOW LAYOUT
toward it
toward it
toward it
toward it … … … …
12: RAPID IMPROVEMENT PLAN
12: RAPID IMPROVEMENT PLAN

28. Before/After Spaghetti Diagram
P.C.
STRIP
NDI
TANK
OFFICE
PAINT
BOOTH
W/C 51A/B
Material
Technician
Strip
Tank
Paint
Booth PC
AFTER
Strip
Tank
Paint
Booth
Office PC
NDI
51E
PAINT
BOOTH N
OFFICE D
TOOL I
ROOM
AWP/RMS
STRIP
SAFETY
520
51D
P.C.
W/C 51A/B
Material
Technician

29. Circle Diagram Current State Future State Handoffs … 47
SNAP
Main
Tech
Main
Tech
ISEA
CRANE
SUPPLY
SNAP
ISEA
CRANE
SUPPLY
CRANE
DEPOT
SUPV
PEO
IWS2
DOCKSIDE
C.O.
C.O. SK
DAAS
DAAS
BO1
BO1
DEPT
HEAD
DEPT
HEAD SK
ITEM
MGR
STOCK
POINT
STOCK
POINT
PEO
IWS2
SUPV
Handoffs … 47
Flow Clock Time … 486 hrs
Manual Touch Time … 108 hrs
Handoffs … 10
Flow Clock Time … 90 hrs
Manual Touch Time … 58 hrs

30. DMAIC Improvement Process Road Map
Analyze
Control
Measure
Define
Activities
Review Project Charter
Validate Problem Statement and Goals
Validate Voice of the Customer and Voice of the Business
Validate Financial Benefits
Validate High-Level Value Stream Map and Scope
Create Communication Plan
Select and Launch Team
Develop Project Schedule
Complete Define Gate
Value Stream Map for Deeper Understanding and Focus
Identify Key Input, Process and Output Metrics
Develop Operational Definitions
Develop Data Collection Plan
Validate Measurement System
Collect Baseline Data
Determine Process Capability
Complete Measure Gate
Identify Potential Root Causes
Reduce List of Potential Root Causes
Confirm Root Cause to Output Relationship
Estimate Impact of Root Causes on Key Outputs
Prioritize Root Causes
Complete Analyze Gate
Develop Potential Solutions
Evaluate, Select, and Optimize Best Solutions
Develop ‘To-Be’ Value Stream Map(s)
Develop and Implement Pilot Solution
Confirm Attainment of Project Goals
Develop Full Scale Implementation Plan
Complete Improve Gate
Implement Mistake Proofing
Develop SOP’s, Training Plan and Process Controls
Implement Solution and Ongoing Process Measurements
Identify Project Replication Opportunities
Complete Control Gate
Transition Project to Process Owner
RIE/Kaizen, 5S, Value Analysis,
Generic Pull Systems, Four Step Rapid Setup Method
Identify and Implement Quick Improvements
Tools
Project Charter
Voice of the Customer and Kano Analysis
SIPOC Map
Project Valuation / ROIC Analysis Tools
RACI and Quad Charts
Stakeholder Analysis
Communication Plan
Effective Meeting Tools
Inquiry and Advocacy Skills
Time Lines, Milestones, and Gantt Charting
Pareto Analysis
Belbin Analysis
Value Stream Mapping
Value of Speed (Process Cycle Efficiency / Little’s Law)
Operational Definitions
Data Collection Plan
Statistical Sampling
Measurement System Analysis (MSA)
Gage R&R
Kappa Studies
Control Charts
Histograms
Normality Test
Process Capability Analysis
Process Constraint ID and Takt Time Analysis
Cause and Effect Analysis
FMEA
Hypothesis Tests/Conf. Intervals
Simple and Multiple Regression
ANOVA
Components of Variation
Conquering Product and Process Complexity
Queuing Theory
Mistake-Proofing/ Zero Defects
Standard Operating Procedures (SOP’s)
Process Control Plans
Visual Process Control Tools
Statistical Process Controls (SPC)
Solution Replication
Project Transition Model
Team Feedback Session
Replenishment Pull/Kanban
Stocking Strategy
Process Flow Improvement
Process Balancing
Analytical Batch Sizing
Total Productive Maintenance
Design of Experiments (DOE)
Solution Selection Matrix
Piloting and Simulation

31. Eliminating Non-Value Added Activities Reducing Process Variation
Integrating a Culture of CPI
LEAN
Eliminating Non-Value Added Activities
Identify the Value Stream
Eliminate Over-Production
Eliminate Over-Processing
Create Process Flow
Create Pull System
CPI
Consistent Repeatable Processes
Process Design / Redesign
Defect Prevention
Statistical Analysis
Voice of the Customer
Six Sigma
Reducing Process Variation
Theory of Constraints
Constraint Mitigation
Identify the Constraint
Exploit the Constraint
Subordinate to the Constraint
Elevate the System’s Constraint
Repeat Step 1, the Constraint has probably moved

32. Roles & Responsibilities
Owns vision, direction, business results
Leads change
Allocates Resources
Owns Value Streams
CPI Office
Line Departments
Executive
Leadership
Owns Deployment Plan
Owns Communication Plan
Captures Metrics
Owns Rapid Improvement Plan
Owns Redeployment Plan
Owns financial results
Removes Barriers
Deployment
Champion
Value Stream
Champion
All Employees
Provide data and voice of customer inputs to VSA, RIE, and Projects
Apply concepts to their own jobs and work areas
Master
Black Belts
Team Members
Trains Black Belts
Leads Complex Projects
Full-time position
Participate in CPI Events and Projects
Part time
Black Belts
Green Belts
Lead and/or support CPI Events & Projects
Full time or part time role
Expert on principles and tools
Leads larger projects
Trains & Coaches Green Belts
Full-time position

33. Certification Requirements
Green Belt
Pass course, exam, certificate
4 RIEs or 1 Project and 2 RIEs
Black Belt
2 Projects
ASQ Examination & Certification
Master Black Belt
Teaching
2-5 years minimum experience

34. Which processes should be targeted?
Executive Planning Session (EPS)
Executive Leadership, 2-3 days, Target HICVS
Value Stream Analysis (VSA)
Value Stream Champion/BB, 2-3 days, Develop RIP
Rapid Improvement Plan (RIP)
Value Stream Champion/BBs&GBs, Execute RIP
Projects
(notional 3-6 months)
Team Leader (Line)
Cross-Functional Team
Black Belt
GB (assist as needed)
Just Do Its
Value Stream Champion Execute
Rapid Improvement Event (RIE)
(7 week cycle) 5S
Standard Work
Flow
Pull
Team Leaders (Line)
Team Members (Line)
Green Belts (GB) Facilitate

35. WIIFM I am learning fast and vicariously
I am a much happier consultant (Win-Win)
I know my role and the role of every person on my team
Decision-making is collective yet accountability is defined; objective vice subjective
Strategic vision is transparent
Success is immediate & measurable
The Value Stream Champion is integral
Transformational change is happening

36. DoN LSS Master Black Belt Instructor, NAVSEA LSS College
Questions & Comments
Contact Information
Vance A. Kinsey, MEd, CPT
DoN LSS Master Black Belt
Instructor, NAVSEA LSS College
(757)