1. An OpEx Implementation Process
Introduction to S.Q.S.
Continuous
Improvement:
An OpEx Implementation Process
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2. Operational Excellence starts with a …
Introduction to S.Q.S.
Operational Excellence starts with a …
“Continuous
Improvement
Mentality”
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3. Continuous Improvement Mentality ?
Introduction to S.Q.S.
What is a
Continuous Improvement Mentality ?
Concerted effort of Leadership to continuously improve work and work processes utilizing common industrial engineering application methodologies …
Lean Enterprise (Toyota Production System)
Six Sigma
Business Process Management/ Analysis
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4. The Lean Enterprise … - Identify and eliminate Waste (Muda) and
Introduction to S.Q.S.
The Lean Enterprise …
- Identify and eliminate Waste (Muda)
and
wasteful practices …
Providing value in the eyes of the customer …
“any part of the process for which the customer is willing
to pay. Value added activities would be those involved in
producing and delivering goods and services.”
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5. Introduction to S.Q.S.
Six Sigma …
- Measure defects in a process and … (with rigor and discipline) systematically figure out ways to reduce them to zero.
“Puts practical tools to work to root out defects at all levels
achieving tangible results of cost savings, employee,
customer and stakeholder satisfaction.”
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6. Business Process Management/ Analysis …
Introduction to S.Q.S.
Business Process Management/ Analysis …
- Provides Managerial Line of Sight
> clear measurements and priorities that
connect from top to bottom in the
organization.
“Key Performance Indicators”
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7. Continuous Improvement Mentality
Introduction to S.Q.S.
Continuous Improvement Mentality
Garner Individual and Team participation through several planned approaches …
Suggestions
Benchmarking
Cross-functional Work Teams
Application Workshops
Professional Development
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8. The S.Q.S. Methodology Employ Improvement Initiatives !
Within Operations …
We focus efforts on concerns of
Safety, Quality and Speed …
(Productivity)
Let’s …
Describe the purpose of each of the elements
Explore requirements of each element
Define general time commitments
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9. The S.Q.S. Methodology Employ Improvement Initiatives
“Safety”
Proactive Management approach to preventing workplace Incidents, Accidents and Personal injury…
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10. The S.Q.S. Methodology Employ Improvement Initiatives
“Safety” One ½ hr. meeting, 1st of each month…
> Workshop topics may include:
Haz Mat/ Haz Comm
HR Issues - Technical, Legal, Moral, Ethical
Fire, EMT’s, First Aid, CPR, Fire Squad/ Fire Drills
Compliance (Visual Control, Visual Management)
QWL Issues, Hazards and Operational topics
> Indoctrination, propagation of “5S”
Continued Implementation/ Follow-up/ Audits
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11. The S.Q.S. Methodology Employ Improvement Initiatives
“5S” Review …
Practical approach to sustaining
workplace productivity …
1S – Sort (organize)
2S – Set in order (everything in its’ place)
3S – Shine (cleanliness)
4S – Standardize (shadow boards, Kanban rules)
5S – Sustain (spider diagrams from audits)
“5S” teams operate in factory and office areas
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12. The S.Q.S. Methodology Employ Improvement Initiatives
“Quality”
Proactive Management approach to Defect Reduction and Product and Process Optimization
Combined with …
Poka - Yoke (Mistake Proofing)
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13. The S.Q.S. Methodology Employ Improvement Initiatives
“Quality”
Weekly Team sessions may include:
> Business Process Management/ Analysis
Value Stream Mapping (Leadership Team)
> Champion Development and Training
Professional Development (Management)
> Six Sigma implementation (Black Belts)
with regularly scheduled team “Report-outs” –
“Six Sigma Simplicity” modules delivered JIT
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14. The S.Q.S. Methodology Employ Improvement Initiatives
“Speed”
(productivity)
Proactive Management approach to
Identify and Eliminate Waste
through ‘Lean Linking’ …
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15. The S.Q.S. Methodology Employ Improvement Initiatives
“Speed”
Weekly sessions may include:
> Book reviews with Leadership Team
> Lean projects following an abbreviated
D/M-A-I-C process with regularly scheduled
Team ‘Report-outs’
Topics/ Projects include:
Kanban / Visual Control / Visual Management
Point-of-Use Tooling, Tools, Supplies
Cells, TAKT, Line Balance/Flow Issues
Total Productive Maintenance, Andon
Set-up, change-over reduction, etc …
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16. The S.Q.S. Methodology
Safety The standard metrics of accident/ incident frequency and severity are sufficient.
Quality What is meant by quality will vary by company, but it must be quality in the eyes of the customer. As a result, customer returns or warranty claims are typically the basis for this metric. It is not a summary of internal quality metrics. It is important to realize that those metrics are only important to the extent that they provide information management can use to minimize cost, improve flow and provide customer “value”.
(Value definition = transformation of form, fit, function or information; done right the first time; Customer willing to pay for…)
Speed (Delivery performance) Delivery performance is the percentage of customer orders shipped when the customer requested them to be shipped. It should not be modified to accommodate company policies or shipping promises. It is purely a metric of manufacturing’s (or the service department’s) ability to meet customer requirements.
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17. With a well-planned implementation,
The S.Q.S. Methodology
With a well-planned implementation,
expected RESULTS may include …
35% to 50% reduction in lost time/
safety-related incidents and accidents
15% to 30% decrease in scrap and rework
25% to 40% reduction in total cycle time
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18. AlliedSignal/ Honeywell Motorola
The S.Q.S. Methodology
Check out the Gain$ achieved by companies that
have fully invested in improvement initiatives …
G.E.
> Added more than $ 2 billion to the bottom line in 1999 alone
AlliedSignal/ Honeywell
> Report savings of over $ 1.5 billion since 1993
Motorola
> Saved more than $ 15 billion in first 10 years of Six Sigma inception
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19. Slow and Sure Let’s begin … Real Improvement: The S.Q.S. Methodology
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20. (example) Initial Engagement [Jan – June]
Introduction to S.Q.S.
(example) Initial Engagement [Jan – June]
Garner Individual and Team participation through 7 Productivity Improvement Teams
5S Team (Administration)
5S Team (Floor, electronics)
5S Team (Floor, sheet metal)
Six Sigma Team (Floor, electronics)
Six Sigma Team (Floor, sheet metal)
Lean Application Team (Floor, electronics)
Lean Application Team (Floor, sheet metal)
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21. Initial Engagement Areas addressed -
Introduction to S.Q.S.
Initial Engagement
Areas addressed -
5S Teams – Safety, Organization, Flow
Six Sigma Teams – Defects, Scrap, Yield
Lean Application Teams – Cycle Time, Waste
Objectives:
Learn and apply C.I. tools/ techniques
Cost Take-out (savings): approx 5% of sales
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22. Initial Engagement [Jan – July]
Introduction to S.Q.S.
Initial Engagement [Jan – July]
Scheduled Team Report – outs:
“Define” Jan
“Measure” March
“Analyze” April
“Improve” May
“Control” July 1st !
“20XX” C.I. Plan (Leadership Team)
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23. The S.Q.S. Methodology Employ Improvement Initiatives
What’s different with this approach ?
- Incorporates Lean and Six Sigma (S-L-O-W-L-Y)
- Voluntary, simple, easy and fun ! (modular, delivered JIT)
- A pro-active approach … (managed, scheduled and planned)
- Implemented on a ‘part-time’ basis (a few hours a week)
- Directly linked to strategic performance goals
- Taps full potential of the organization –
Utilizes Cross-functional Teams/ SME’s/ Mentors
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24. Our Destiny ! Continuous Improvement: The S.Q.S. Methodology
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