This is a presentation of the Equable company which offers services in Lean Six Sigma field and which promotes its own model of Lean Six Sigma Deployment within an Organization, which is service marked called "Business Operations Excellence"
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> Our consultants are passionate by excellence > Our consultants are experienced & certified:
> they worked in significant high positions in prestigious companies > they coached hundreds of Lean Six Sigma completed projects,
resulting in several $M productivity and savings > they taught hundreds of Lean Six Sigma classes > they certified hundreds of Master Black Belts, Black Belts and Green
Belts > Our consultants are pragmatic and “hands-on” oriented > They are expert in change management > They have a solid background in finance > They share common values: intellectual growth, people respect,
challenging mind, culture of result, quest of excellence
Minitab Inc. is the US editor of a six sigma statistical software called MINITAB®. Equable is a reference partner of Minitab Inc. and promotes its usage
Crystal Ball® is a Six Sigma Statistical Simulation software tool that Equable selected. It is published by Oracle, a US Company with whom EQUABLE has a partner agreement
Our services From strategy alignment to project governance, our know-how includes: > Efficiency program definition, deployment and management > Project selection, definition, execution and management > People selection and development > Lean Six Sigma coaching > Lean Six Sigma training > Design For Lean Six Sigma > Lean Six Sigma certification of Master Black Belts, Black Belts and
Green Belts > Talent recruitment > Change management
• Identify the issues and the scope of the project, the objectives and the business plan • Set up the macro-planning and the project team • Map the macro-process (SIPOC) • Voice of the Customer • Formalize and validate the Project Chart
Measure (5 weeks)
• Define the data collection program • Collect the data for each indicator for all the end to end processes • Analyze and validate the proposed measurement system • Measure the “as is” process performance
Analyze (6 weeks)
• Analyze the statistic data • Analyze the detailed process mapping • Analyze the process added value • Identify the inefficiency root causes
• Identify improvement solutions addressing the root causes • Plan, develop and implement pilot solutions • Roll out the solutions
• Monitoring of the output • Control and audit the
sustainability of the output • Standardize and transfer the
output to the process owner • Close the project
Month 3 Month 1 Month 2 Month 5 Month 4
BOE® Execute - Each individual Lean Six Sigma project respects a common framework & timeframe
• 12 Black Belts • 12 Pilot projects (proof of concept) + 12 projects in first year
2010-2011 2009 2012
Pilot Phase
Roll Out
• 60 additional Black Belts • 120 projects per year with 60 Black Belts (acceleration pace) • Executive training • Sponsor & stakeholders trainings • Green Belt trainings Knowledge Transfer
• 60 additional Black Belts • 240 projects per year with 120 Black Belts (cruise pace) • Training of Client’s Master Black Belt • Lean Six Sigma License transfer
In a decentralized environment a regional entity can volunteer for the Pilot Phase and provide a positive background of internal competition
To be adapted according to the resource availability and the change management culture
Lean Six Sigma for Executives: 1 day Introduction to Lean Six Sigma Change Management of Lean Six Sigma Process Optimization with Lean Six Sigma Lean Process Analysis and Improvement tools Methodology DMAIC 6 Sigma Methodology DMADV 6 Sigma (DFSS) Project Governance Roles in Lean Six Sigma:
• Champion • Black Belt • Green Belt • Sponsor • Stakeholders
Lean Six Sigma deployment (theory) Lean Six Sigma deployment (exercise)
Lean 6 σ Black Belt training agenda Week 1: Introduction to Lean 6 σ with focus on Lean Introduction to Lean Six Sigma Process Optimization with Lean Six sigma Lean Process Analysis and Improvement tools:
• Process Mapping • 8 wastes identification • Value Stream mapping • Notions of 5S • Setup time reduction • Total Productive Maintenance • Standard operations & Continuous flow • Kaizen event
VOC, CTQ selection, measurement and monitoring Customer Business Process Review + Projects Selection and Project definition and plan for Week 2
Week 3: Lean Six Sigma DMAIC Recap of week 2 Measure Six sigma tools
• MSA (Gage R&R) • Performance measurement
Analyze (Statistical Analysis) Improve Six Sigma tools (Regression, ANOVA, DOE introduction) Control (SPC) Project Leader Guide Follow up on all the real projects : Review of trainee projects, interactive coaching, Plan to close projects
Week 2: Lean Six Sigma DMAIC Recapitulation of week 1 Define Measure Introduction to Minitab™ Analyze (Process Analysis & Data Analysis) Improve Control Use of DMAIC template & Storyboard Work on real projects: Review of trainee projects, Interactive coaching, plan
Week 1*: Introduction to Lean 6 σ with focus on Lean Introduction to Lean Six Sigma Process Optimization with Lean Six sigma Lean Process Analysis and Improvement tools:
• Process Mapping • 8 wastes identification • Value Stream mapping • Notions of 5S • Setup time reduction • Total Productive Maintenance • Standard operations & Continuous flow • Kaizen event
VOC, CTQ selection, measurement and monitoring Customer Business Process Review + Projects Selection Project definition and plan for Week 2
Week 2*: Lean Six Sigma DMAIC Recapitulation of week 1 Define Measure Introduction to Minitab™ Analyze (Process Analysis & Data Analysis) Improve Control Use of DMAIC template & Storyboard Work on real projects: Review, Interactive coaching, plan
Lean 6 σ Green Belt training agenda
*Note : week 1 and week 2 of green Belts are similar to week 1 and week 2 of Black Belts. This allows trained Green Belts to become Black Belts by taking only a Black Belt Week 3 incremental training
Change Management Objective: be able to implement and to manage efficiently a fast change by working on its acceptance
Introduction to efficient change process Change profile Prepare teams for success Define change project The need for change Setup a vision and communicate Motivate and engage people on change Lead the change Follow up the change Changing Systems and Structures Questions and answers
Meeting facilitation skills Objective : be able to facilitate efficiently a productive working meeting/workshop by following a timely process
Introduction Principles of facilitation
• Content versus Process • Diversity in teams • Exercise • Basic facilitation principles (diagnostic and reaction) • “Bloody meeting” video • Preventions and interventions • Conflict management
Tools and Process • Tools for idea generation • Tools for problem cause analysis • Tools for solutions (generation and selection)
Real case study: • Idea generation • Problem cause analysis • Solution generation and selection
Heijunka (Sequence plan) Standard Work Kaizen Operational Stability
The TPS House was developed by Taiichi Ohno and Eiji Toyoda to make it easy to explain Toyota's continuous improvement system to employees and suppliers. The aim of TPS is to eliminate all muri, mura, muda
(overburden, unevenness, waste) from the operations.
Specify Value… from the customer’s point of view Identify Value Stream… map process & see wastes Flow… move one piece at a time continuously Pull… let the customer pull your product Perfection… always improve the process
From Lean Thinking by James P. Womack and Daniel T. Jones, Free Press
Lean tools Lean designates a set of tools which has been first used in Manufacturing in the 60’s (coming mainly from the Toyota Production System) and now used in the service industry (business transactional processes). The Lean tools allow the optimization of production and transactional processes flow. The Lean tools are : > 7 forms of wastes (Mudas) > 5 S (Clean, order and optimize its workplace) > Kaizen (Change to become good) > Jidoka (Highlighting/Visualization of problems) > Value Stream Mapping (Process value analysis) > Just in Time, Pulling systems & Kanban refurbishing systems > Quick Changeover (Setup time optimization) > TPM (Total Productive Maintenance) > Process Standardization: alignment of production with demand (Takt time,
Distribution Cycle Time example: > The cycle time of a distribution company, from customer order to
customer delivery should not exceed 3 days (our contractual terms & conditions)
> The Customers complain. > The competitors are better than us. They never exceed 3 days > The Management says “we are loosing money” > The team in place says “we dispatch in average the same day we
receive the order and we always use a 24 hours delivery carrier”
Measure conclusion I observed a probability of defect of 12.03%! My performance is 2.67 σST*. We have a problem! 6 sigma goal is to reach 0.00034% of probability of defect!
I can place 6 σ between µ and the spec. limit and the
distribution is normal!
σ
µ
6xσ
New Cycle time from order to delivery distribution
KAIZEN
2 actions taken: > Speed cycle by processing “Outside Paris region” orders first & organize an earlier transfer to shipping department by removing some non value added tasks (unnecessary sign offs) > Change address format and control it at order time (avoid quality issues)
Budget : • I sell 10 € every unit • Operational margin = 25% (2.50 €) • every defect costs me 24 €! • at 2,67 σ (12,08% defects) I lost 40 cents every unit I sold!!
Lean 6 Sigma business case examples Cash improvement: Our customer wanted to reduce their current overdue by 80% from 10 M€ (representing more than 10% of one year revenue) down to 2 M€. Potential benefit: 5% (cost of money)*8 M€ = 400K€. Cost of Six Sigma project: 100 K€. Return on investment: 4. After analysing 4 months of receivable aged balance it was found:
> the receivable aged balance was not measuring the real overdue (revenue recognition issue) 15% deviation
> 20% of the invoices had no payment due date. > 15% of the invoices were not addressed to the right international financial and funding
organisation (special contracts funded by IMF, WB, etc…) > 33% were customer disputes > 17% were real late payments (5% because of invoice sent too late, 12% without a valid
reason but were not chased)
After fixing the main issues and changing the invoice process we reached a stable monthly overdue amount of less than 1.9 M€. Project Sourcing efficiency: Our customer wanted to increase their margin on the projects that they are selling. Due to a tough competition, it was decided to source more efficiently the services and the IT systems. After a first financial analysis, we started one project on Low Cost Country Sourcing. Potential benefits on one year: 620 K€. Cost of Six Sigma project: 120 K€. Return on Investment: >5. For this project, we have redesigned the sourcing processes, introduced a new Purchase Forecast tool and assigned Goals & Objectives to Buyers. As a result of these changes, the amount of purchases made in Low Cost Countries increased from 18% to 24% in 6 months, with a forecast of 30% in the next 6 months.
Customer order Webification: Our customers wanted to automate and optimize their Customer order process from sales representatives taking orders to Back office logistic persons transmitting orders to manufacturing and/or suppliers: Potential benefits (productivity and capacity gains) : 55% of gains on 11 people *87K€ = 520K€. Cost of Lean Six Sigma project: 120 K€. Return on investment after one years = 4.33 After a Value Stream Analysis and a confirmation meeting with main stakeholders it was decided to:
1. Simplify the process (suppression of administrative validations (not necessary and ceating delays and errors)
2. IT « Webification » of the Customer order process (orders taken offline on sales laptops and sent/synchronized with email)
3. Automatic interface with supplier IT system and only one validation in all the process After a training of involved parties and a 3 months pilot of the new process, the measurements done confirms that only 5 employees can manage and process an identical order volume.
Financial Analysis Optimization: Our customer wanted to use the ORACLE-GL Financial analysis module instead of Excel, to realize all its analytical financial reports. Potential benefits: (productivity) : 3 interims*50 K€ = 150K€. Cost of project Lean Six Sigma : 50 K€. Return on investment after one years = 3 After an exhaustive inventory listing of all the existing analytical reports, their value and the cost to produce them, it was decided to keep 12 standard reports and to model them into Oracle-GL. After 2 months and few tunings, the measurements shows that 98% of all demanded analysis can be answered with the Oracle-GL analytical module.