Lean 6

• 1. May 9, 2009

2. 2009 Study Results Lean Talent Demand Widens Lead Over Six Sigma inBleak Economy. Fifth annual study by executive search firm The Avery Point Group finds Lean talent demand continuing to surpass Six Sigma as companies grapple with todays bleak economic environment. 3. Beginning of the end for Six Sigma? Certainly not The overall foundation of continuous improvement should be viewed as a collection of tool sets that includes both Lean and Six Sigma, which are applied when and where appropriate. Overall, there are certainly benefits to integrating both methodologies. 4. Lean Six Sigma The importance of incorporating the voice of the client(VOC) at each critical phase in the value stream placement process. We take great care in defining and characterizing the clients critical to quality (CTQs) requirements. 5. Lean Six Sigma Lean Six Sigma methodology is the concept of wasteand defect elimination. To ensure successful screening and placement of candidates, thus avoiding waste and defects that can cost a client time, money, and worse yet, a poor placement. 6. Lean Six Sigma (LSS) 7. Lean Origins 8. TPS 9. Lean 5 Principles 10. Lean Tools 11. Six Sigma Origins 12. 6 Sigma 13. Continuous Improvement 14. Lean Six Sigma DMAIC Phases 15. Define 16. Measure 17. Analyze 18. Improve 19. Control 20. What is Lean Six Sigma ? 21. Why is it so successful ? 22. When to use and not to use ? 23. Why they fail ? 24. History perspective 25. Mean VS. Variation 26. Statistical Perspective 27. Quantitative Perspective 28. Quantitative Perspective 29. Customers Perspective 30. Operational Perspective 31. DMAIC Phases 32. Define Phase 33. COPIS 34. Measure Phase 35. Measure Phase 36. 10 Key Elements 37. Measure Phase 38. Analyze Phase 39. Value Stream Mapping 40. Fishbone Analysis 41. Fishbone Diagram 42. Scatter Plots 43. Improve Phase 44. Improve Phase 45. Pilot Solution 46. Control Phase 47. Successful Lean Six Sigma 48. Implementation Plan 49. Approach 50. LSS Benefits 51. Who is doing what in LSS ? 52. Lean or Six Sigma ? Material flow is poor Error rate is high Cant deliver on time Equipment too slow 53. Lean or Six Sigma ? LEAN MANUFACTURING: Reduce Lead Time by eliminating waste in the Value Stream Provides the Game Plan and Plays SIX SIGMA: Reduce process variation Provides the Play by Play Analysis and Instant Replay 54. Lean or Six Sigma ? LEAN MANUFACTURING: Flow Focused Lean cannot bring a process under statistical control SIX SIGMA: Problem Focused Can not dramatically improve process speed or reduce invested capital NEED BOTH! 55. Integrate Lean & Six Sigma Increases customer satisfaction Improves profitability & competitive position Has historical integration problems Requires a different system model Requires implementation & sustaining plans 56. Value Added Value is added any time the product is physicallychanged towards what the customer is intending to purchase. Value is also added when a service is provided for which the customer is willing to pay (i.e. design, engineering, etc.). If we are not adding value, we are adding cost or waste. 90% of lead time is non-value added! 57. Value Stream The value stream is the set of all the specific actionsrequired to bring a specific product (good or service) through the critical management tasks of any business: 1. Information Management 2. Transformation 58. Value Stream Map The value stream map follows the production pathfrom beginning to end and shows a visual representation of every process in the material and information flows Shows how the shop floor currently operates Foundation for the future state 59. 8 Wastes 1. 2. 3. 4.5. 6. 7.8.Inventory (more than one piece flow) Overproduction (more or sooner than needed) Correction (inspection and rework) Material Movement Waiting Motion Non-Value Added Processing Underutilized People 60. Lean Concepts Flow: Setup Reduction, Cellular Manufacturing, BatchSize Reduction, Visual Workplace, Layout Pull: Kanban Systems, Supply Chain Management, Point of Use Perfection: Quality Systems including variation reduction, Training 61. Lean Techniques Value Stream Mapping Cellular Manufacturing & Layout Kanban Trigger Board 5S Quality Data Collection & Analysis (Reduce ExtrusionReject Rate) 62. Six Sigma Cycle 63. Six Sigma Tools Check Sheets: Checklists of what is to be accomplished,etc.. Scatter Diagrams: A graphical representation between two measurements (variables). Fishbone or Cause and Effect Diagrams: Provides a starting point for problem analysis. Problems are diagrammed into categories of Machinery, Material, Methods and Labor (Manpower). Pareto Charts: A method for organizing errors based on the number of errors created by a particular attribute (ex. Machine, Supplier, Product, Individual, etc.). 64. Six Sigma Tools (cont.) Process Maps or Flowcharts: Graphical representation of aprocess or system showing process or product transformation. In other words, what is being done, by who and what choices are being made. (Ideally process maps should include cycle times, defect information, etc.) FMEAs (Potential Failure Mode and Effects Analysis): A detailed document which identifies ways in which a process or product can fail to meet critical requirements. X-Y Matrix: A ranking method used to prioritize process inputs (Xs) to process outputs (Ys). 65. Bad news for Six Sigma 80% of Six Sigma Implementations fail. Traditional Six Sigma implementations have largelybeen attempted at large Fortune 500 Companies due to the large investment in people, training and overall support. Training costs alone for a wave of 25 people can cost $250,000 for this 4 to 6 month training period. Training costs and personnel requirements can overwhelm many smaller organizations. 66. Need for LSS ? Quality, Warranty, and Cost Customers Require Six Sigma Customers Require Lean Manufacturing Competitors are implementing Lean & Six Sigma Staying in business 67. Need for LSS ? Operational Cost Reduction Improve Productivity Reduce Scrap and Rework Reduce Inventory & WIP Engineering Design Cost Reduction Define-Measure-Analyze-Design-Verify (DMADV) Stabilize & Quantify Process Capability Input for Product and Design Process 68. Apply LSS 69. Goals of LSS Improved Customer Satisfaction Increased Profits Improved Process Capability by Reducing Variance Increased Market Share Support Continuous Improvement Sustained Gains for Completed Projects 70. Advantages of LSS Easier for Small Business to Justify Focused on Solving Companies Problems Joint Problem Solving and Knowledge/Skill Transfer Easier to Meet Customer Mandates to Use Lean SixSigma Techniques Provides Evolutionary Approach to Lean/Six Sigma Implementation and Training 71. How to Start LSS ? Get Management commitment Assess the operation & understand the Process using a Value Stream Map (Product families & Production data) Identify lean improvements & kaizens without automation Implement lean improvements using VSM plan Identify processes requiring Six Sigma analysis Analyze, eliminate, and control variation Start the cycle again! 72. LSS Cycle 73. LSS Techniques Value Stream Mapping Process flow diagrams Setup time Analysis Quality Data Collection & Analysis (Reduce RejectRate & Variability) 74. LSS Results Operating costs Process speed (lead time) Inventory & invested capital Quality Customer satisfaction Operating flexibility 75. LSS Cycle 76. DMEDI process Define the problem or requirements. Measure the process and gather data associated with the problem or requirements. Explore the data to identify a cause and effectrelationship between variables. Develop a new process so that the problem is eliminated and the new results meet the new requirements. Implement the new process under a control plan. 77. DMEDI process Define (Map Current State) Measure (Lean Metrics) Explore (Value Stream) Develop (Map Future State) Implement (Kaizen) 78. Define (Map Current State) The root issues must be understood from twoperspectives: what is causing them and what stands between how things should be and what they are. Failure to understand will result in widespread wishful thinking and superficial solutions. 79. Measure (Lean Metrics) You must be able to establish a number to it. Structured so the number is easily obtainable andupdated. Do not measure everything. Have key measures that are monitored closely and often. Used to make you aware of a problem, nothing more. 80. Explore (Value Stream) The Value Stream is defined solely by the customer. Your product must meet the customers needs at botha specific time and delivered with the required message. Optimizing the value stream from their eyes and in an efficient process to a level not experienced before. That is your value stream and your vision. 81. Develop (Map Future State) To be successful, you must have a measurement foreverything and do not accept less. If it doesnt work, justify it with data and stop doing it. Using your current state map, ask yourself where would you like to be and realistically what time frame can you accomplish this? Map the needed tactics to fulfill the metrics you developed. 82. Implement (Kaizen) Kaizen is the Japanese word for continuousimprovement. Kaizen has three steps. First, create a standard. Second, follow it. Third, find a better way. We must realize the work is never done, it is continuously improving (follow these four simple words: plan, do, check, act - PDCA cycle ). 83. LSS Benefits Exceeding customer expectations Improved Process Efficiencies People alignment to a common purpose to becomethe first choice of their customers Challenged legacy processes and modified them 84. Xerox & LSS 85. Xerox & LSS 86. Xerox employs a variety of LSS DMAIC (Define, Measure, Analyze, Improve, Control): A standard approach for re-engineering existing processes. DMEDI (Define, Measure, Explore, Develop, Implement): Ideal for optimizing new processes. DFLSS (Design For Lean Six Sigma): Used, with specialized tools, for customer-driven design of new technologies and services. 87. Xerox & DMAIC 88. The End 89. - Dr. Edward Deming