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OAKLAND CONSULTING DRIVER A European Lean Six Sigma Process Improvement Methodology Paul White Oakland Consulting.

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Presentation on theme: "OAKLAND CONSULTING DRIVER A European Lean Six Sigma Process Improvement Methodology Paul White Oakland Consulting."— Presentation transcript:

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

2 2 2 2 OAKLAND CONSULTING 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 3 3 3 OAKLAND CONSULTING Some of our Private Sector Clients

4 4 4 4 OAKLAND CONSULTING Some of our Public Sector Clients

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

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

7 7 7 7 OAKLAND CONSULTING Will 100% inspection protect the customer? Scenario Oaklands 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 8 8 8 OAKLAND CONSULTING Finished files are the results of many years of sceintific studies combined with the experience of many years of effort F-Test

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

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

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

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

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

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

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

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

17 OAKLAND CONSULTING Process Improvement Methodologies

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

19 19 OAKLAND CONSULTING 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 7. Make change permanent Documentation Revise targets, FMEAs, etc. 8. Recognise the team Recognise individuals and the team Celebrate success Global 8D 0. Emergency Response Action Protect the customer

20 20 OAKLAND CONSULTING DMAIC Define Measure Analyse Improve Control 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 21 OAKLAND CONSULTING DRIVER A European Lean Six Sigma Improvement Methodology D 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 R Renforcer Capitalise the improvement by learning the lessons and establishing process re-assessment for continuous improvement

22 22 OAKLAND CONSULTING Methodology Comparison 1. Identify team 2. Define problem 3. Contain symptom 4. Identify root causes 5. Choose corrective action 6. Implement corrective action 7. Make change permanent 8. Recognise the team Define Measure Analyse Improve Control Do Act Check Plan PDCADMAIC8D D efine R eview I nvestigar V erbessern E xecute DRIVER R enforcer

23 23 OAKLAND CONSULTING DRIVER A holistic approach DRIVER training also includes project management & change management

24 OAKLAND CONSULTING Lean Principles

25 25 OAKLAND CONSULTING 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 1950s. 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 26 OAKLAND CONSULTING World Class Companies: NVA = 80% TTT Remove Waste, dont Improve the Value-Add Total Throughput Time = Value- add time Non-Value Add + Other time + Lean Eliminate Waste to Improve the Value Stream Lean Eliminate Waste to Improve the Value Stream Usual Focus Work longer-harder-faster, add people, complexity or equipment Usual Focus Work longer-harder-faster, add people, complexity or equipment 26 Typical NVA = 99% TTT

27 27 OAKLAND CONSULTING Over-production Motion Inventory WAS TE Waiting Defects (Scrap/Rework) Over-processing Transportation The 7 wastes

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

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

30 OAKLAND CONSULTING Six Sigma Overview

31 31 OAKLAND CONSULTING 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 32 OAKLAND CONSULTING Six Sigma Satisfying the Customer Defects Acceptable LSLUSL Customer Requirement Process Performance Sigma is a capability metric that compares process performance against customer requirements

33 33 OAKLAND CONSULTING Is 99% Quality Good Enough? 6 Sigma % Good 6 Sigma % Good 1 short or long landing every 5 years 3.8 Sigma 99% Good 3.8 Sigma 99% Good 2 short or long landings at an airport per day (200 daily flights) 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 opportunities3.4 defects per million opportunities

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

35 35 OAKLAND CONSULTING Variable process capability is the ability of a process output to fit between the specification limits which are defined by the customer requirements. Variable Process Capability Analysis

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

37 37 OAKLAND CONSULTING Cp = LSL USL Workshop Exercise Cp

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

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

40 OAKLAND CONSULTING DRIVER – Process Improvement

41 41 OAKLAND CONSULTING DRIVER The Process Focus Optimised Process 3-5 xs 40–60 xs: Inputs D efine : Grasp the problem & identify objectives R eview : Map as-is process & current performance I nvestigar : A nalysis & root cause identification V erbessern : Solution generation & prioritisation E xecute : Implement solutions to sustain the gain R enforcer : Share best practice & lessons learnt Y: Output 3-5 xs

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

43 DRIVER Project Checklist © Oakland Consulting Plc. All rights reserved. DefineReviewInvestigateVerifyExecuteReinforce 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 (KPIs) 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: 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 Project Leader: Project Sponsor: Process Owner: Team Members: Start Date: Project Title:

44 OAKLAND CONSULTING European Aeronautical Defence Sector (EADS) Military Transport Eurocopter AstriumAirbus Defence & Security

45 45 OAKLAND CONSULTING EADS Version of DRIVER

46 46 OAKLAND CONSULTING MTAD - Improve super plastic forming process EF-2000 slats 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 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 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 What has been doneAchievements Context EF-2000 Slat Superplastic forming process METRIC BASELINERESULTS % NON CONFORMING VALUES (REPAIRS) 73%23% %SCRAP8.5%1.3% %CONCESIONS89%20% %HNC´S100%60% LEAD TIME50 days42 days WORK IN PROCESS333, ,946 NON QUALITY COST REDUCTION (*)

47 47 OAKLAND CONSULTING User Help Desk Process Improvement DProcesses identification, Prioritisation, Voice of Customer, Voice of Business RProcess mapping, waste identification IStatistical analysis (process capability, Pareto), root cause VSolution generation, waste reduction, external benchmark, business case E Responsibility charting, implementation R Full deployment proposal What has been done Achievements 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 Context 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 Performance

48 48 OAKLAND CONSULTING 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 OAKLAND CONSULTING Questions and Answers Paul White Oakland Consulting


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