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Demystifying Lean Six Sigma: Why the emphasis on Continuous Process Improvement? Vance A. Kinsey, CPT LSS Master Black Belt Presentation to ASQ Chapter.

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Presentation on theme: "Demystifying Lean Six Sigma: Why the emphasis on Continuous Process Improvement? Vance A. Kinsey, CPT LSS Master Black Belt Presentation to ASQ Chapter."— Presentation transcript:

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

2 Demystifying Lean Six SigmaContinuous Process Improvement Overview 2 My Journey Scientific & Engineering Interest/Aptitude Trainer….but training was not the answer Supervisor/Manager….discovered the system (Good people, bad systemwho 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 Demystifying Lean Six SigmaContinuous Process Improvement Overview 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 Demystifying Lean Six SigmaContinuous Process Improvement Overview 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?

5 Demystifying Lean Six SigmaContinuous Process Improvement Overview 5 Managing ExpectationsProject 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 Demystifying Lean Six SigmaContinuous Process Improvement Overview 6 The First Step is the Hardest

7 Demystifying Lean Six SigmaContinuous Process Improvement Overview 7 How many of you have heard…? I dont like it! I dont want it! I dont want it here! Weve already done this! Isnt this another flavor of the month? Itll never work here! Were different! We dont have processes! We dont manufacture anything! Our processes only happen on demand Our leaders wont support it! How can I impact a command-level process? Were too busy!!! Were not broke; we dont need fixing!!!! We dont have the money!!!!! NEWS FLASH: ALL OF THESE THOUGHTS ARE NORMAL!

8 Demystifying Lean Six SigmaContinuous Process Improvement Overview 8 CPI/LSS has borrowed best practices from all of these initiatives PERFORMANCE IMPROVEMENT REFERENCE LIBRARY

9 Demystifying Lean Six SigmaContinuous Process Improvement Overview 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 Demystifying Lean Six SigmaContinuous Process Improvement Overview 10 CPI/LSS is NOT… Another management program. A justification for buying new equipment, spending more money, or hiring/firing people. A substitute for good leadership. A one-size fits all solution. 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. It IS a scalable collaborative process to capture, prioritize and address all concerns of customers, suppliers and stakeholders.

11 Demystifying Lean Six SigmaContinuous Process Improvement Overview 11 Why now? Were 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 Demystifying Lean Six SigmaContinuous Process Improvement Overview 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 Demystifying Lean Six SigmaContinuous Process Improvement Overview 13 Appropriate methodology for all types of processes Examples of areas that can be significantly improved: 1. Transactional/administrative process (takes too long) 2. Personnel overworked; multiple unnecessary steps (wasteful) 3. Document review process (inconsistent) 4. Unhappy customers & workers 5. Cuts, shortfalls, and downsizing 6. Ineffective management controls; inspections, oversight, surveillances, audits, reviews 7. Changing customer demand

14 Demystifying Lean Six SigmaContinuous Process Improvement Overview 14 There may still be pockets of resistance or suspicion

15 Demystifying Lean Six SigmaContinuous Process Improvement Overview 15 Value Stream Speed of Lean Customer Value Accuracy of Six Sigma Focus of TOC Integration of three disciplines

16 Demystifying Lean Six SigmaContinuous Process Improvement Overview 16 History of Lean, Six Sigma, & TOC Roots of Lean: back to early 1900s 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 1980s (TOC) Motorola & others: developed Six Sigma early 1990s NIKE

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

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

19 Demystifying Lean Six SigmaContinuous Process Improvement Overview 19 Where to use CPI/LSS for Problem Solving LEADERSHIP & ACCOUNTABILITY PROCESS PERSONNEL PLANT This is where CPI/LSS Works best.

20 Demystifying Lean Six SigmaContinuous Process Improvement Overview 20 1.Specify Value from the Customers Perspective 2.Map & Analyze theValue Streams 3.Make the Value Streams Flow 4.Enable the Customer to Pull Value from the Value Streams 5.Seek Perfection Lean Principles

21 Demystifying Lean Six SigmaContinuous Process Improvement Overview Eight Wastes Overproduction Waiting Transportation Over-processing Inventory Motion Defects Lean is eliminating waste T I M W O O D U Under-utilization Of Employees

22 Demystifying Lean Six SigmaContinuous Process Improvement Overview 22 The Value of Time TIME Broken Component Repaired Component Wait Transport InspectSet-up = Value-Added Time = Non-Value-Added Time (WASTE) Machine Disassemble StartFinish Re-Install Remove From Ship Value-added time is only a very small % of the total time. Within the 8 wastes, time is a significant factor. BEFORE ANALYSIS AFTER IMPROVEMENTS

23 Demystifying Lean Six SigmaContinuous Process Improvement Overview 23 Time The Value of Time Lean Focus Make all of the Value Stream visible Reduce or eliminate Non-Value-Added portions of the process Result: Large time savings Traditional Focus Improve Value-Added work steps Better tools, machines, instructions Result: Small time savings Amount of Time Eliminated amount of time saved Small 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! LARGE

24 Demystifying Lean Six SigmaContinuous Process Improvement Overview 24 Shift Happens 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. Process A Process B Six Sigma is eliminating variation

25 Demystifying Lean Six SigmaContinuous Process Improvement Overview 25 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 Hey, 99% is good enough right? 99% % (6 Sigma) Whats the big deal?

26 Demystifying Lean Six SigmaContinuous Process Improvement Overview 26 A constraint is anything in an organization that limits it from moving forward or achieving its goal The slowest vehicle in a convoy sets the pace 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--- TOC is eliminating bottlenecks

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

28 Demystifying Lean Six SigmaContinuous Process Improvement Overview 28 Before/After Spaghetti Diagram BEFORE AFTER

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

30 Demystifying Lean Six SigmaContinuous Process Improvement Overview 30 DMAIC Improvement Process Road Map 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 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 SOPs, Training Plan and Process Controls Implement Solution and Ongoing Process Measurements Identify Project Replication Opportunities Complete Control Gate Transition Project to Process Owner 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 / Littles 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 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 Mistake-Proofing/ Zero Defects Standard Operating Procedures (SOPs) Process Control Plans Visual Process Control Tools Statistical Process Controls (SPC) Solution Replication Project Transition Model Team Feedback Session 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 Tools Activities RIE/Kaizen, 5S, Value Analysis, Generic Pull Systems, Four Step Rapid Setup Method RIE/Kaizen, 5S, Value Analysis, Generic Pull Systems, Four Step Rapid Setup Method Identify and Implement Quick Improvements Improve Analyze Control Measure Define

31 Demystifying Lean Six SigmaContinuous Process Improvement Overview 31 Integrating a Culture of CPI 1.Identify the Constraint 2.Exploit the Constraint 3.Subordinate to the Constraint 4.Elevate the Systems Constraint 5.Repeat Step 1, the Constraint has probably moved Theory of Constraints Constraint Mitigation Consistent Repeatable Processes Process Design / Redesign Defect Prevention Statistical Analysis Voice of the Customer Six Sigma Reducing Process Variation LEAN Eliminating Non-Value Added Activities Identify the Value Stream Eliminate Over-Production Eliminate Over-Processing Create Process Flow Create Pull System CPI

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

33 Demystifying Lean Six SigmaContinuous Process Improvement Overview 33 Certification Requirements Green Belt –Pass course, exam, certificate –4 RIEs or 1 Project and 2 RIEs Black Belt –Pass course, exam, certificate –2 Projects ASQ Examination & Certification Master Black Belt –Teaching –2-5 years minimum experience

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

35 Demystifying Lean Six SigmaContinuous Process Improvement Overview 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 Demystifying Lean Six SigmaContinuous Process Improvement Overview 36 Questions & Comments Contact Information Vance A. Kinsey, MEd, CPT DoN LSS Master Black Belt Instructor, NAVSEA LSS College (757)


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