11/28/2010 1 Lean Six Sigma Lean Six Sigma A Methodology To A Methodology To A Methodology To A Methodology To Improve Performance Improve Performance Yves Roy ASQ Certified Six Sigma Black Belt MQQ Certified Lean Master CPSQA Member’s Event 2010-11-24 Presentation Plan Lean Six Sigma 09:15 to 09:30 Introduction 09:30 to 10:00 Why & What of Lean Six Sigma 10:00 to 10:30 Reduce Cycle Time & Backlog 10:00 to 10:30 Reduce Cycle Time & Backlog 10:30 to 10:45 Group discussion & questions
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11/28/2010
1
Lean Six Sigma Lean Six Sigma
A Methodology ToA Methodology ToA Methodology ToA Methodology To
Improve PerformanceImprove PerformanceYves Roy
ASQ Certified Six Sigma Black BeltMQQ Certified Lean Master
CPSQAMember’s Event
2010-11-24
Presentation Plan
Lean Six Sigma
09:15 to 09:30 Introduction
09:30 to 10:00 Why & What of Lean Six Sigma
10:00 to 10:30 Reduce Cycle Time & Backlog10:00 to 10:30 Reduce Cycle Time & Backlog
10:30 to 10:45 Group discussion & questions
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Lean Six Sigma Lean Six Sigma ParadigmsParadigms ShiftShift
Government vs Private Sector Organizations
• Popular misconceptions in Government
• Widgets
• Clients
• Profits
Lean Six Sigma Target AreasLean Six Sigma Target Areas
•Licensing•Policy developmenty p•Strategic plan•Drug programmes•Inspections•Accounting•Product Safety Assessment•Budget Reports•Epidemiology
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Organisation Organisation LevelLevelStrategicStrategic
ThreeThree LevelsLevels -- Management SystemManagement System
System &System &ProcessProcess LevelLevel
TacticalTactical
SubSub--ProcessProcess & & Job Job LevelLevel
ImplementationImplementation
Lean Six SigmaLean Six SigmaProcessProcess GoalsGoals
• Are goals aligned with clients & organizationalrequirements?q
ProcessProcess DesignDesign
• Is it the most effective & efficient process for accomplishing the process goals?
ProcessProcess ManagementManagement
• Is process performance managed & sufficientresources allocated to the process?
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PROCESS MANAGEMENT MODEL
www.BPTrends.comwww.BPTrends.com
Lean Six Sigma Lean Six Sigma BenefitsBenefits
Better management of operational workload Increase productivity Better planning Increase client satisfaction Cost reduction Performance indicators Management dashboard
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Six Sigma
Identifying the cause
Typical Process ProfileTypical Process Profile
Nb
ro
f Tr
ansa
ctio
ns
Lead Time Days
N
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A A CloserCloser LookLook
LSL USL
LSL 0Target *USL 60Sample Mean 25,6249Sample N 946StDev(Between) 0StDev(Within) 3,33344
Process Data
Cp 3,00CPL 2,56CPU 3,44Cpk 2,56
B/W Capability
B/WOverall
Between/Within Capability of Total CT For CM (NNF) Burnaby May 2008
LSL USL
LSL 0Target *USL 60Sample Mean 25,6249Sample N 946StDev(Between) 0StDev(Within) 3,33344
Process Data
Cp 3,00CPL 2,56CPU 3,44Cpk 2,56
B/W Capability
B/WOverall
Between/Within Capability of Total CT For CM (NNF) Burnaby May 2008
Lead Time - Days
105,087,570,052,535,017,50,0
StDev(B/W) 3,33344StDev(Overall) 10,684 Pp 0,94
PPL 0,80PPU 1,07Ppk 0,80Cpm *
Overall Capability
PPM < LSL 0,00PPM > USL 1057,08PPM Total 1057,08
Observed PerformancePPM < LSL 0,00PPM > USL 0,00PPM Total 0,00
Exp. B/W PerformancePPM < LSL 8232,80PPM > USL 646,72PPM Total 8879,52
Exp. Overall Performance
105,087,570,052,535,017,50,0
StDev(B/W) 3,33344StDev(Overall) 10,684 Pp 0,94
PPL 0,80PPU 1,07Ppk 0,80Cpm *
Overall Capability
PPM < LSL 0,00PPM > USL 1057,08PPM Total 1057,08
Observed PerformancePPM < LSL 0,00PPM > USL 0,00PPM Total 0,00
Exp. B/W PerformancePPM < LSL 8232,80PPM > USL 646,72PPM Total 8879,52
Exp. Overall PerformanceLead Time - Days
Lean Six Sigma
Other factors to investigate include:
• Completeness of client request• Type of transaction• Office layout• Balancing workload• Email, web, fax, phone and postal service
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Lean
Reducing non-value addedactivities
‘Lean’ at its Best‘Lean’ at its Best
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Parallel Between Lean Management Traffic Management
ProcessProcess IncidentIncident
P kP k TiTi
http://www.oti.dot.gov/index.htm
PeakPeak TimeTime
ProcessProcess RedesignRedesign
Typical NonTypical Non--ValueValue--Added ActivitiesAdded Activities
1.Overproducing, Not Needed NonNon--ValueValue--
AddedAdded ValueValue--
2.Waiting3.Excess Inventory4.Extra-processing5.Defects & Errors6.Motion
AddedAddedAddedAdded
95%95%6.Motion7.Transport & Distribution
95%95%
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Lean + Six Sigma = Lean + Six Sigma = Performance Performance ImprovementImprovement
LEAN & SIX SIGMA IN SUMMARYLEAN & SIX SIGMA IN SUMMARY
Lean reduces waste 6 Sigma reduces variation
Lean + Six Sigma =increases speed & accuracy
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Lean Six Sigma in RealityLean Six Sigma in RealityN
br
of
Tran
sact
ion
s
Lead Time - Days
N
Success Stories
Licensing program• Reduce cycle time
• Reduce Costs by about $200K per year
• Increase of consistency between employees
• Reduce process complexity
• Reduce backlog?
Testing laboratory• Reduce cycle time by 66% for one type of analysis process
• Reduce backlog by 99%
• Reduce cost by $200K per year
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Office Layout -Impact
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System of System of HeijunkaHeijunka BoxesBoxes
•• This system This system eliminateseliminates filingfilingeliminateseliminates filingfilingcabinets to cabinets to avoidavoidstockingstocking files files intointothemthem. This system . This system encourages files to be encourages files to be completed by the end completed by the end of the day and of the day and yyreturned to the filing returned to the filing roomroom
Lean Six SigmaLean Six Sigma
“It is not the strongest“It is not the strongestIt is not the strongest It is not the strongest nor the mostnor the most
intelligent of the species intelligent of the species that survives, but the that survives, but the
one that is most one that is most adaptable to change”adaptable to change”p gp g
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Thank you
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