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DRIVER A European Lean Six Sigma Process Improvement Methodology

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Presentation on theme: "DRIVER A European Lean Six Sigma Process Improvement Methodology"— Presentation transcript:

1 DRIVER A European Lean Six Sigma Process Improvement Methodology
Paul White Oakland Consulting

2 Agenda Oakland Consulting Process Improvement Methodologies
Lean Principles Six Sigma Overview DRIVER: Process Focus Deployment Strategy European Aeronautical Defence Sector (EADS) EADS DRIVER Case Study Questions & Answers

3 Some of our Private Sector Clients

4 Some of our Public Sector Clients

5 Workshop Discussion What methods can we use to protect the customer?

6 100% Inspection – Does it work?
Workshop Discussion 100% Inspection – Does it work?

7 Will 100% inspection protect the customer?
Scenario Oakland’s Marketing Department are very proud of the publications they produce. The customers of Oakland expect the highest quality publications. Therefore, the manager of the publications department has decided to employ you as an inspector at the end of the printing process to ensure that the text produced is accurate. You have 30 seconds to inspect the following set of text and count how many times the letter ‘F’ appears, (upper & lower case) including the title.

8 F-Test Finished files are the results of many years of sceintific studies combined with the experience of many years of effort

9 How many did you see? Have another look!
F-Test How many did you see? Have another look!

10 F-Test Finished files are the results of many years of sceintific studies combined with the experience of many years of effort

11 Did anyone change their mind?
F-Test Did anyone change their mind?

12 F-Test Finished files are the results of many years of sceintific studies combined with the experience of many years of effort

13 Did you spot anything else?
F-Test Did you spot anything else?

14 F-Test F-Test Finished files are the results of many years of sceintific studies combined with the experience of many years of effort

15 100% Inspection – Does it work?
Workshop Discussion 100% Inspection – Does it work?

16 Process Improvement Methodology Objective
Waste Elimination / Defect Reduction Efficiency / Yield Improvement Improved Customer Satisfaction Higher Shareholder Value

17 Process Improvement Methodologies

18 Act Plan Check Do Plan, Do, Check, Act What now? What focus?
Review Project revision Standardisation Share learnings Further improvement Plan What focus? Project goals/measures Set up team Map process Measure process Identify key problems Find root causes Identify solution Plan for implementation Do What action? Prepare for implementation Training Communication Implement improvement Change management Project management Check What happened? Measurement Assessment Analysis

19 Global 8D 0. Emergency Response Action 1. Identify the team
Protect the customer 1. Identify the team Build cross-functional team 2. Define the problem Where, when, etc. Is/Is not analysis Process map Measure and set objective 3. Contain the symptom Short-term solution Rescue affected customers 4. Identify root causes Use FMEA, Five Whys Identify and check root cause 5. Choose corrective action Focus on fixing root causes Set targets and owners for implementation 6. Implement corrective action Implement to plan Collect data to prove success This is a more recent variant of the improvement cycle. It is popular in the automotive industries and actually originates in Ford. A good idea that it contains is ‘containing the symptom’ – this is like putting a sticking plaster on a bleeding wound before you go to the hospital. In practice, it may mean taking short-term steps to resolve a customer problem whilst also working on fixing the root cause that caused the problem in the first place. 7. Make change permanent Documentation Revise targets, FMEAs, etc. 8. Recognise the team Recognise individuals and the team Celebrate success

20 Define Measure Analyse Improve Control DMAIC
Identify champion and owner Initial assessment of situation Define scope and goals of project Map process Validate measurement system Calculate process capability Analyse for sources of variation Identify potential root causes Verify actual root cause Develop solution Create new process map Cost / benefit analysis Standardise Sustain the gain Develop control strategy

21 DRIVER A European Lean Six Sigma Improvement Methodology
Define Define the scope and goals of the improvement project in terms of customer and/or business requirements and the process that delivers these requirements. R Review Map the ‘as-is’ process and measure the current process performance to understand the ‘value-add’ I Investigar Analyse the gap between the current and desired performance, prioritise problems and identify root causes of problems. V Verbessern Generate the improvement solutions to fix the problems and prevent them from reoccurring so that the required financial and other performance goals are met E Execute This phase involves implementing the improved process in a way that “holds the gains”. Standards of operation will be documented in systems such as EN 9100 and standards of performance will be established using techniques such as Statistical Process Control Renforcer Capitalise the improvement by ‘learning the lessons’ and establishing process re-assessment for continuous improvement

22 Methodology Comparison
PDCA 8D DMAIC DRIVER 1. Identify team Define 2. Define problem Define 3. Contain symptom Review Measure Plan Investigar 4. Identify root causes Analyse Do Improve Verbessern 5. Choose corrective action Check 6. Implement corrective action Execute Control 7. Make change permanent Act 8. Recognise the team Renforcer

23 DRIVER A holistic approach
DRIVER training also includes ‘project management’ & ‘change management’

24 Lean Principles

25 Lean Principles Lean principles are based on the Toyota Production System (TPS) TPS was developed after benchmarking the Ford Motor Company River Rouge plant in Detroit in the 1950’s. The key characteristics of TPS / Lean are: Only producing what is required, when it is required Close links throughout the supply chain – just in time Producing right first time A lean mindset & company culture The elimination of non-value added activity (waste)

26 Remove Waste, don’t Improve the Value-Add
Total Throughput Time = Value-add time + Non-Value Add + Other time Usual Focus Work longer-harder-faster, add people, complexity or equipment Lean Eliminate Waste to Improve the Value Stream World Class Companies: ‘NVA’ = 80% TTT Typical ‘NVA’ = 99% TTT 26

27 1 7 2 WASTE 6 3 5 4 The 7 wastes Over-production
Defects (Scrap/Rework) Over-production Inventory 1 7 2 Motion Over-processing WASTE 6 3 5 4 A useful way to remember the 7 wastes is is TIM WOOD Transportation Waiting

28 A Lean Example LEAN Concepts Standardised Work Waste Elimination
Parallel Processing Cell Layout Batch Reduction Quick Changeover Line Balancing Other Concepts Visual Management 5 S Error Proofing

29 Workshop Discussion Are Lean principles only applicable to manufacturing processes?

30 Six Sigma Overview

31 What is Six Sigma? Six Sigma is focused on improving the quality of our products and services How do we define the term ‘quality’? The generic definition of quality is ‘meeting or exceeding the customer requirements’ The customer of a process can be internal or external Therefore, Six Sigma improves quality, thus, improving customer satisfaction

32 Six Sigma Satisfying the Customer
Defects Acceptable LSL USL Customer Requirement Process Performance Sigma is a capability metric that compares process performance against customer requirements

33 Is 99% Quality Good Enough?
3.8 Sigma 99% Good 6 Sigma % Good 2 short or long landings at an airport per day (200 daily flights) 1 short or long landing every 5 years Unsafe drinking water for almost 15 minutes each day Unsafe drinking water one minute every seven months 5,000 incorrect surgical operations per week (500,000 operations per week) 1.7 incorrect operations per week 10,700 defects per million opportunities 3.4 defects per million opportunities

34 Quantifying Process Capability
} Sigma is a universal measure of process performance

35 Variable Process Capability Analysis
Variable process capability is the ability of a process output to ‘fit’ between the specification limits which are defined by the customer requirements. 4 3 5 6 7 Can this distribution from a process output fit between the specification limits of 5 1?

36 Variable Process Capability Analysis
Capability is an assessment of: process spread as a ratio of the process tolerance. – Cp / Pp LSL USL Tolerance Process spread Cpk / Ppk is the location of the process mean with respect to both process specification limits. LSL USL Mean

37 Workshop Exercise Cp LSL USL Cp = 1 Cp = 3 Cp = 2 Cp = 0.5 Cp = 1

38 Workshop Exercise Cpk Cpkl = 1 Cpku = 1 Cpkl = 5 Cpku= 1 Cpkl = 1
LSL USL Cpkl = 1 Cpku = 1 X Cpkl = 5 Cpku= 1 X Cpkl = 1 Cpku = 3 X Cpkl = 0.5 Cpku= 0.5 X Cpkl = 3 Cpku = -1

39 Cp / Cpk Simulation The London Institute of Education utilised digital technology to create a Cp / Cpk training tool to enhance learning in the workplace. Cp Cpk

40 DRIVER – Process Improvement

41 DRIVER The Process Focus
Define: Grasp the problem & identify objectives Y: Output Review: Map ‘as-is’ process & current performance 40–60 x’s: Inputs Investigar: Analysis & root cause identification 3-5 x’s Verbessern: Solution generation & prioritisation 3-5 x’s Execute: Implement solutions to ‘sustain the gain’ 3-5 x’s Renforcer: Share best practice & lessons learnt Optimised Process

42 DRIVER Deployment Structure
Inverting the hierarchal triangle Customers of Products and Services Green Belts Black Belts Project Champions Master Black Belts Executive Black Belts DRIVER deployment is led by executives to ensure company wide support

43 DRIVER Project Checklist
Project Leader: Project Sponsor: Process Owner: Team Members: Start Date: Project Title: Key: Completed In progress X Not required R&R Roles and responsibilities KOMY Key Ouput Metric Y CTQ Critical to Quality SOP Standard Operating Procedures SLA Service Level Agreement Define Review Investigate Verify Execute Reinforce Develop problem statement Identify project scope Determine SMART objective Formulate project team with R&Rs SIPOC map Define CTQs Stakeholder map Develop comm-unication plan Develop outline project plan Refine & sign-off Project Charter Project sponsor approval ‘Current state’ process map Identify potential quick wins Identify measurements to be taken Develop data collection plan Collect data Calculate baseline process capability (KOMY) Revisit problem statement Project sponsor approval Analyse Waste – Lean Toolkit Analyse Variation – Six Sigma toolkit Team brainstorm to identify root causes Document root causes on Cause & Effect diagram Select top 3-5 root causes Validate root causes Project sponsor approval Team brainstorm solutions Select optimum solutions Conduct pilot study (or FMEA) Verify improvements ‘Future state’ process map Review stakeholder map and comms plan Implementation business case (cost / benefit) Implementation timing plan Project sponsor approval Implement actions on timing plan Select control techniques (SPC) Update or create SOP / SLA Develop control metrics (KPI’s) Disengage old process Monitor progress Validate improvements: process capability (compare against baseline Y) Handover to process owner Project sponsor approval Monitor progress Share lessons learnt (organisation memory, newsletters etc) Thank the team Celebrate success Plan future activities Project sponsor approval End Date: End Date: End Date: End Date: End Date: End Date: © Oakland Consulting Plc. All rights reserved.

44 European Aeronautical Defence Sector (EADS)
Airbus Eurocopter Astrium Military Transport Defence & Security

45 EADS Version of DRIVER

46 MTAD - Improve super plastic forming process EF-2000 slats
Context Situation : Deviations in slat spar position cause scraps and repairs at assembly leading to non quality costs and manufacturing lead-time increase. Performance : On-quality 27% spar position values. 8.5% scrap. € non quality costs EF-2000 Slat Superplastic forming process What has been done Achievements D – Stake-holder analysis, DoE training, Pareto analysis for scoping. R – Process map & key parameters, run charts, histograms. I – Run charts, Process capability analysis, Scatter plot. V – Variance & correlation analysis, Pareto, Rules determination. ER – SPC, KPI monitoring METRIC BASELINE RESULTS % NON CONFORMING VALUES (REPAIRS) 73% 23% %SCRAP 8.5% 1.3% %CONCESIONS 89% 20% %HNC´S 100% 60% LEAD TIME 50 days 42 days WORK IN PROCESS 333,774 € 280,946 € NON QUALITY COST REDUCTION (*)

47 User Help Desk Process Improvement
Performance Context Situation : Information Management integration at company level with numerous local processes Performance : On time Incident Resolution performance fluctuated a great deal from process to process What has been done Achievements D Processes identification, Prioritisation, Voice of Customer, Voice of Business R Process mapping, waste identification I Statistical analysis (process capability, Pareto), root cause V Solution generation, waste reduction, external benchmark, business case E Responsibility charting, implementation R Full deployment proposal Buy-in facilitated by the DRIVER method Performance increased by 40% (increase of calls closed by UHD) Cost base sustainable benefit exceeding 400 K€ per year for Germany and France

48 Summary Oakland Consulting Process Improvement Methodologies
Lean Principles Six Sigma Overview DRIVER: Process Focus Deployment Strategy European Aeronautical Defence Sector (EADS) EADS DRIVER Case Study Questions & Answers

49 Questions and Answers Paul White Oakland Consulting

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