Presentation on theme: "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."— Presentation transcript:
1 Demystifying Lean Six Sigma: Why the emphasis on Continuous Process Improvement? Vance A. Kinsey, CPT LSS Master Black BeltICONSNote that Lean Six Sigma is often abbreviated LSS and Continuous Process Improvement is abbreviated CPI.Presentation toASQ Chapter Meeting15 April 2009
2 My Journey Scientific & Engineering Interest/Aptitude Trainer….but training was not the answerSupervisor/Manager….discovered the “system” (Good people, bad system—who wins?)Education….Adult Learning….but education was not the answerConsulting….helping others achieve their goalsHuman Performance Technology….CPT (people)Lean Six Sigma….MBB (process)Leadership….Strategic Transformation; helping organizations discover/achieve their goals
3 AgendaWhy 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 practitionersDeployment 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 itHow the project leader understood itHow the analyst designed itHow the programmer wrote itHow the consultant described itHow the project was documentedWhat was installed by operationsHow the customer was billedHow the project was supportedWhat the customer really needed
7 How many of you have heard…? We don’tmanufactureanything!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 havethe money!!!!!NEWS FLASH:ALL OF THESE THOUGHTSARE NORMAL!We’re different!Our leaders won’tsupport it!We don’t haveprocesses!How can I impacta command-levelprocess?It’ll never work here!We’re not broke; wedon’t need fixing!!!!I don’t want it here!Our processes onlyhappen “on demand”I don’t want it!
8 CPI/LSS has “borrowed” best practices from all of these initiatives PERFORMANCE IMPROVEMENT REFERENCE LIBRARYCPI/LSS has “borrowed” best practicesfrom 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 languageCommon practiceShareable resources, personnelUsed by business & industry, government & military, and academia (including their consultants)Benefits can be compared and collectedRigorous, 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 & workersCuts, shortfalls, and downsizingIneffective management controls; inspections, oversight, surveillances, audits, reviewsChanging customer demand
14 There may still be pockets of resistance or suspicion
15 Integration of three disciplines Focus of TOCValue StreamSpeed of LeanCustomer Value-6 Accuracy of Six Sigma
16 History of Lean, Six Sigma, & TOC Roots of Lean: back to early 1900’sHenry Ford: continuous flow production, waste eliminationTWI: (Training Within Industry),Kiichiro Toyoda and Taiichi Ohno: low inventories, flexibility & responsivenessU.S. supermarkets: pull systemsShigeo Shingo: mistake proofing, reduced set up times (SMED)Toyota Production SystemMIT 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’sNIKE
17 DMAIC - The Process for Process Improvement P DSHEWHARTCYCLEA CIDENTIFY PROBLEMSDEFINEDESCRIBE CONDITIONMEASURELIST POTENTIAL CAUSESANALYZEPROPOSE SOLUTIONSIMPROVEPREPARE ACTION PLANS, IMPLEMENT IMPROVEMENTSCONTROLVERIFY RESULTSLong Term ImplementationDocument, Communicate andIdentify Replication OpportunitiesCOMPARE/CONTRAST TO HPSM
18 Same Scope of Impact…Different Starting Point ???EngineeringSolutionPsychometricsManpowerQuantityRatingsSeniorityPersonnelHuman FactorsSafetyTrainingMedicalHabitabilitySurvivabilityPolicyProcessKnowledgeManagementReward &IncentiveStandards &ExpectationsITErgonomicsWorkEnvironmentDoctrine& TestingMaterialEPSSPC SimJob AideeLearning
19 Where to use CPI/LSS for Problem Solving This is where CPI/LSSWorks best.LEADERSHIP&ACCOUNTABILITYPROCESSPERSONNELPLANT
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 StreamsSeek “Perfection”
21 Non-Value Add Hauling Eight Wastes Lean is eliminating waste T I M W O O D UUnder-utilizationOf EmployeesTransportationOverproductionNon-Value AddHaulingEight WastesMotionDefectsWaitingOver-processingInventory
22 Within the 8 wastes, time is a significant factor. The Value of TimeWithin the 8 wastes, time is a significant factor.DisassembleTransportWaitMachineMachineRe-InstallRemove FromShipSet-upInspectTransportBEFOREANALYSISStartFinishBrokenComponentTIMERepairedComponent= Value-Added Time= Non-Value-Added Time (WASTE)Value-added time is only a very small % of the total time.AFTERIMPROVEMENTS
23 LARGE The Value of Time amount of time saved Traditional Focus Improve Value-Added work stepsBetter tools, machines, instructionsResult: Small time savingsTimeAmount ofTime EliminatedSmallLARGEamount oftime savedLean FocusMake all of the Value Stream visibleReduce or eliminate Non-Value-Added portions of the processResult: Large time savingsNote: 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 variationBased on Statistical ThinkingAll work is a series of processAll processes have variationBusinesses improve when they reduce or eliminate variation“In God we trust, everyone else bring data.”Shift HappensProcess BProcess A
25 What’s the big deal? Hey, 99% is good enough right? 99% % (6 Sigma)20,000 lost postal mail items per hour15 minutes of unsafe drinking water per day2 long/short landings per day at a major airport5,000 incorrect surgical operations per week7 hours of lost electricity per month20,000 incorrect prescriptions per month7 lost postal mail items per hour1 unsafe minute every seven months1 long/short landing every five years1.7 incorrect operations per week1 hour without electricity every 34 years68 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 goalWhen 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 Plan12 Step1: SIPOC1: SIPOC2: BOUNDARIES2: BOUNDARIESSee theSee theSee theSee the3: VOICE OF THE CUSTOMER3: VOICE OF THE CUSTOMERProcessProcessProcessProcess…………4: SET UP THE CURRENT STATE MAP4: SET UP THE CURRENT STATE MAP5: WASTE WALK5: WASTE WALKSee theSee theSee theSee the6: CREATE CURRENT STATE MAP6: CREATE CURRENT STATE MAPWasteWasteWasteWaste…………7: SPAGHETTI MAP / CIRCLE DIAGRAM7: SPAGHETTI MAP / CIRCLE DIAGRAM8: FLOW ANALYSIS8: FLOW ANALYSISBreakthrough!!9: CREATE IDEAL STATE MAP9: CREATE IDEAL STATE MAP10: DEVELOP FUTURE STATE MAP10: DEVELOP FUTURE STATE MAPLead the WayLead the WayLead the WayLead the Way11: DEVELOP FLOW LAYOUT11: DEVELOP FLOW LAYOUTtoward ittoward ittoward ittoward it…………12: RAPID IMPROVEMENT PLAN12: RAPID IMPROVEMENT PLAN
29 Circle Diagram Current State Future State Handoffs … 47 SNAPMainTechMainTechISEACRANESUPPLYSNAPISEACRANESUPPLYCRANEDEPOTSUPVPEOIWS2DOCKSIDEC.O.C.O.SKDAASDAASBO1BO1DEPTHEADDEPTHEADSKITEMMGRSTOCKPOINTSTOCKPOINTPEOIWS2SUPVHandoffs … 47Flow Clock Time … 486 hrsManual Touch Time … 108 hrsHandoffs … 10Flow Clock Time … 90 hrsManual Touch Time … 58 hrs
30 DMAIC Improvement Process Road Map AnalyzeControlMeasureDefineActivitiesReview Project CharterValidate Problem Statement and GoalsValidate Voice of the Customer and Voice of the BusinessValidate Financial BenefitsValidate High-Level Value Stream Map and ScopeCreate Communication PlanSelect and Launch TeamDevelop Project ScheduleComplete Define GateValue Stream Map for Deeper Understanding and FocusIdentify Key Input, Process and Output MetricsDevelop Operational DefinitionsDevelop Data Collection PlanValidate Measurement SystemCollect Baseline DataDetermine Process CapabilityComplete Measure GateIdentify Potential Root CausesReduce List of Potential Root CausesConfirm Root Cause to Output RelationshipEstimate Impact of Root Causes on Key OutputsPrioritize Root CausesComplete Analyze GateDevelop Potential SolutionsEvaluate, Select, and Optimize Best SolutionsDevelop ‘To-Be’ Value Stream Map(s)Develop and Implement Pilot SolutionConfirm Attainment of Project GoalsDevelop Full Scale Implementation PlanComplete Improve GateImplement Mistake ProofingDevelop SOP’s, Training Plan and Process ControlsImplement Solution and Ongoing Process MeasurementsIdentify Project Replication OpportunitiesComplete Control GateTransition Project to Process OwnerRIE/Kaizen, 5S, Value Analysis,Generic Pull Systems, Four Step Rapid Setup MethodIdentify and Implement Quick ImprovementsToolsProject CharterVoice of the Customer and Kano AnalysisSIPOC MapProject Valuation / ROIC Analysis ToolsRACI and Quad ChartsStakeholder AnalysisCommunication PlanEffective Meeting ToolsInquiry and Advocacy SkillsTime Lines, Milestones, and Gantt ChartingPareto AnalysisBelbin AnalysisValue Stream MappingValue of Speed (Process Cycle Efficiency / Little’s Law)Operational DefinitionsData Collection PlanStatistical SamplingMeasurement System Analysis (MSA)Gage R&RKappa StudiesControl ChartsHistogramsNormality TestProcess Capability AnalysisProcess Constraint ID and Takt Time AnalysisCause and Effect AnalysisFMEAHypothesis Tests/Conf. IntervalsSimple and Multiple RegressionANOVAComponents of VariationConquering Product and Process ComplexityQueuing TheoryMistake-Proofing/ Zero DefectsStandard Operating Procedures (SOP’s)Process Control PlansVisual Process Control ToolsStatistical Process Controls (SPC)Solution ReplicationProject Transition ModelTeam Feedback SessionReplenishment Pull/KanbanStocking StrategyProcess Flow ImprovementProcess BalancingAnalytical Batch SizingTotal Productive MaintenanceDesign of Experiments (DOE)Solution Selection MatrixPiloting and Simulation
31 Eliminating Non-Value Added Activities Reducing Process Variation Integrating a Culture of CPILEANEliminating Non-Value Added ActivitiesIdentify the Value StreamEliminate Over-ProductionEliminate Over-ProcessingCreate Process FlowCreate Pull SystemCPIConsistent Repeatable ProcessesProcess Design / RedesignDefect PreventionStatistical AnalysisVoice of the CustomerSix SigmaReducing Process VariationTheory of ConstraintsConstraint MitigationIdentify the ConstraintExploit the ConstraintSubordinate to the ConstraintElevate the System’s ConstraintRepeat Step 1, the Constraint has probably moved
32 Roles & Responsibilities Owns vision, direction, business resultsLeads changeAllocates ResourcesOwns Value StreamsCPI OfficeLine DepartmentsExecutiveLeadershipOwns Deployment PlanOwns Communication PlanCaptures MetricsOwns Rapid Improvement PlanOwns Redeployment PlanOwns financial resultsRemoves BarriersDeploymentChampionValue StreamChampionAll EmployeesProvide data and voice of customer inputs to VSA, RIE, and ProjectsApply concepts to their own jobs and work areasMasterBlack BeltsTeam MembersTrains Black BeltsLeads Complex ProjectsFull-time positionParticipate in CPI Events and ProjectsPart timeBlack BeltsGreen BeltsLead and/or support CPI Events & ProjectsFull time or part time roleExpert on principles and toolsLeads larger projectsTrains & Coaches Green BeltsFull-time position
33 Certification Requirements Green BeltPass course, exam, certificate4 RIEs or 1 Project and 2 RIEsBlack Belt2 ProjectsASQ Examination & CertificationMaster Black BeltTeaching2-5 years minimum experience
34 Which processes should be targeted? Executive Planning Session (EPS)Executive Leadership, 2-3 days, Target HICVSValue Stream Analysis (VSA)Value Stream Champion/BB, 2-3 days, Develop RIPRapid Improvement Plan (RIP)Value Stream Champion/BBs&GBs, Execute RIPProjects(notional 3-6 months)Team Leader (Line)Cross-Functional TeamBlack BeltGB (assist as needed)Just Do ItsValue Stream Champion ExecuteRapid Improvement Event (RIE)(7 week cycle)5SStandard WorkFlowPullTeam 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 teamDecision-making is collective yet accountability is defined; objective vice subjectiveStrategic vision is transparentSuccess is immediate & measurableThe Value Stream Champion is integralTransformational change is happening
36 DoN LSS Master Black Belt Instructor, NAVSEA LSS College Questions & CommentsContact InformationVance A. Kinsey, MEd, CPTDoN LSS Master Black BeltInstructor, NAVSEA LSS College(757)