Lean Six Sigma overview Julian Kalac

Introduction to Lean Six Sigma for Black Belt Candidates

Master Black BeltJulian Kalac, P.Eng.

1

2

Goals for the Black Belt Program

1) Understand and learn how to use Lean Six Sigma tools and methods at the Black Belt level

2) Be able to apply the process improvement tools and methods learned to solve problems, improve performance and achieve desired goals

3) Think more objectively, critically and analytically using data to make key decisions

INTRODUCTION TO SIX SIGMA

4

MEASURE•Map/measure the process•Collect lots of data

ANALYZE•Organize and analyze the data and information to Identify failure modes, problems, root causes

CONTROL•Maintain, monitor and control variation•Preventively fix root causes

IMPROVE•Plan, apply, deploy Improvement Tools•Correctively fix failure modes

DEFINE•Identify standards, metrics, objectives, CUSTOMER PROBLEMS

Define

Measure

AnalyzeImprove

ControlResults

Define

Measure

AnalyzeImprove

ControlResults

What is “Six Sigma”? An Analytical Methodology that Focuses on Reducing Process Variation

Applied projects following the DMAIC Model

Define

Measure

AnalyzeImprove

ControlResults

Define

Measure

AnalyzeImprove

ControlResults

The “R-DMAIC –D” Model Recognize-DMAIC-Deploy: Extend Performance Improvements

Applied Learning

Theory PracticeCoached Projects

Training typically occurs over a 4-6 month period using a Learn Apply; Learn Apply; … format.

Projects that solve real performance problems in your organization are part of the certification and learning process

Recognize:•Find problems•Link to organization's needs•Form teams, define resources•Understand program req’ts

Deploy:•Validate improved performance that stays in place

Defining Projects Starts with Problems

6

2) Clearly Define your Problem and the ImpactExample:Too many mistakes in purchase request specifications are causing rework rates of 34%, high costs and late deliveries (less than 50% on time) to our customers

1) Find

• Customer Issues• Performance Reviews• Meetings• New Projects• Failures, Re-work• Projects• Continuous improvement activities • Champions• Stakeholders• Employees• SCOR Maps• Research• Brainstorm• Wait until the crisis hits you• Value Stream Maps

3) Clearly State the Initial Scope for your project

(Set targets and timelines!)Example:This first phase of this project – by 3Q 2004 - will identify problems and root causes in the purchase request process, increase first pass yield rates to 95%, reduce the cost of poor quality by 50% and increase on-time deliveries to our customers to greater than 90%4) Link improvement targets to customer needs and organizational objectives

5) Project Plan – Charter, Resources, Milestones

Measure Phase Process FlowHow to Get Good Data

7

Process Flowfor Measure Phase

Data Storage

and Archivi

ng

What data do we need?Can we use “old” historical data?Is old data (still) usable? How was it collected?

Wisdom

Knowledge

Data

Information

Wisdom

Knowledge

Data

Information

Wisdom

Knowledge

Data

Information

Data Selection

Data Integrity Analysis

Data Collection

Measurement System Analysis

Process Mapping

Use Statistical tools to analyze data Look for significant factors Plot your analysis in charts Transform the results into action plans

8

Analyze Phase

86420

Median

Mean

2.502.252.001.751.501.251.00

Anderson-Darling Normality Test

Variance 2.5808Skewness 1.75512Kurtosis 3.79022N 47

Minimum 0.0000

A-Squared

1st Quartile 0.7500Median 1.50003rd Quartile 2.2500Maximum 7.7500

95% Confidence I nterval for Mean

1.3847

1.98

2.3281

95% Confidence I nterval for Median

1.0948 2.0000

95% Confidence I nterval for StDev

1.3350 2.0177

P-Value < 0.005

Mean 1.8564StDev 1.6065

95% Confidence I ntervals

Summary for 2005 downtime

Improve Phase Process Flow(1) Select - (2) Apply - (3) Implement/Deploy

9

PROBLEMFINDING

FACTFINDING

PROBLEMDEFINITION

IDEAFINDING

EVAL. & SELECT

PLAN

ACCEPT-ANCE

ACTION

123

467

8

5

SelectTool

Analyze Data & Information Apply tools & Make Changes

SixSigma

Projects5S PM/TPM TQM

Rapid Improve-ment Event

IntegratedProcess

Team (IPT)

Establish Baselines/Metrics

Other CI Tools

Kanban DFSS

Ap

ply

th

e T

ool

(1)

(2)

(3)Implement / Deploy Fixes

(0) Identify failure points, bottlenecks and improvement opportunities from Define-Measure-Analyze Phases

PM = Preventive MaintenanceTPM = Total Productive MaintenanceCI = Continuous ImprovementDFSS = Design for Six SigmaTQM = Total Quality Management

Control Phase Process FlowSustaining the Improvements

Maintaining and Improving Control: Managing Change Quality Management Systems What’s Left? What’s Next?

10

Control Tools:• POKA YOKE• Statistical Process Control

(SPC) • “Spec” Control

Document Procedures and Best Practices

Create Visual Controls and “Dashboards”

UpdateDeployment

Plan

Complete Control

Plan FMEA

Update and Deploy

Communication Plan Execute

Deployment PlanDocument Other

Opportunities

Prepare and Implement

Control Plan

Report out, Hand-off and

Closure

Prepare and Implement

Training Plan

Process Flow Diagram for Control Phase:

Deploy Phase Spreading change Across the Organization

11

Deploy:•Validate improved performance that stays in place

•Spread improvements across the enterprise

•Harvest the performance improvements

•Change the culture

•Where else can you tale the improvements•Look further upstream•Look further downstream•What about other customers•What about “re-fixing” processes you already fixed

| | 12

LEAN MANUFACTURING OVERVIEW

What is Lean Manufacturing? “Lean” is a Japanese methodology that

focuses on producing high quality products faster, better and at lowest cost.

Lean is about eliminating waste (scrap, rework) and doing things right the 1st time.

Lean is NOT ELIMINATING JOBS!

The goal is that “you don’t work harder, but rather smarter”

| | 14

Why Lean Manufacturing?

Customers demand shorter lead times, improved quality & reduced prices

Increase through-put and quality and reduce time wasted and frustration by working on non-value add activities.

Gain new business

| | 15

Why Should We Change Anything?

INSANITY “Doing the same thing over and over again and expecting different results” Albert Einstein

Change Cycle

| | 16 16

Change cycle

How people feel

Keep momentum movingMOST CRITICALTIME IN CHANGES

After results from changes are seen

Toyota Production System (TPS)Building on Quality System Principles to build Business Systems

17

Single Piece Flow Just-In-Time Eliminate Waste

•Process parts one-at-a-time or in small lots instead of in large batches or economies of scale•Quick changeovers•Balanced and continuous flows instead of stop and start processing

•Have just the right amount of inventory you need, when you need it, where you need it•Optimize the amount of inventory required•Ensure that your resources are ready to support the flow

•Never knowingly pass on a defect•Improve the capability of your processes•Fix failure modes when they occur•Determine and resolve the deeper root causes

= =

The Toyota Production System

Model by Michael Kukhta Reference: Senji Niwa, from the Shingijutsu Organization. Niwa-san also worked directly for Toyota’s Taiichi Ohno (TPS creator) for 18 years.

“Classic Lean” Strength

“Supply Chain Management”

Strength

“Classic Six Sigma” Strength

Lean Overview: What is Lean?

The systematic elimination of waste and re-alignment of resources to deliver value to the customer faster, better, & more consistently

Lean is:

◦ Focus: Eliminate waste, non-value add steps, process constraints and bottle necks that cause problems in work throughput

18

Leading to Leading toEliminate Waste

Reduced Cycle Times

Increased Capacity

The Five Principles of Lean

| | 19

1. Lean training to understand why? and how?

2. Value Stream Mapping -Current & Future State

3. Eliminate waste and non-value add work

4. Identify process bottlenecks and improve them

5. Cross Functional Training

| | 20

7+1 wastes

1. Defects-creating wasted (scrap)2. Reworking fixing mistakes 3. OVERPRODUCING to make up for lost time 4. WAITING for material, people, instructions5. WALKING looking for tools, material, people, 6. MOVEMENT handling of material, paperwork7. INVENTORY Inventories of parts more than

needed (WIP)

| | 21

The 8th WasteLack of cross-functional training

Not utilizing the full capabilities of employees

Inadequately trained people

Over relying on a select few

High overtime increasing pressure and stress

Process Mapping

| | 22

High-Level Process Map Suppliers, Departments,

Customers

Mid-Level Process Map Specific Area ex Production

Detail-Level Process Map

Specific process/operation (most commonly used)

Stop

StartStartStopStop

StartStart

StartStart

StopStop

StopStop

SCOR (Supply Chain Operations Reference) Model: Structured around Five CORE Process Types

SCOR Model

Customer’s

Customer

Supplier’sSupplier

Supplier

Internal or External

Customer

Internal or External

Your Company

Plan

Make DeliverSource Make / Repair

Deliver

MakeSource

Deliver

Source

Deliver

Source

Return

Return

Return

Return Return Return

Return

Return

Plan Plan

Provides Framework for your Transformation / Improvement Projects.• Defining the boundaries / scope of the supply chain .• Evaluate the supply chain’s strengths and weaknesses.• Industry benchmarks, standardized terms, metrics,

Enables a total enterprise view of a supply chain

Customer

BatchWIP 1

Test failures

Batch WIP 2

Production

Defects detected

CustomerDefects

LateOrders

QCI

Rework

Test Reject

s

QCI2

REWORK1

Sub-Assy Riveting

Shipping

Supplier

EXAMPLE OF Current Coil Assembly (Coils/day =28

OEE=62%)

Sub-Assy2 WIP2

Final-AssyTest 2

Hurry NeedTo ship!!!

NVA = 38%

Cost = 32% DLV+Scrap

VA= 62%

FUTURE STATE Coil Winding Process(Lean Flexible work Cells =40 Coils/Day, OEE= 84%)

| | 25

15 coils/shift 8 20 26 39 31 10 20

413

19

20 8 40 20 20 2020 20 20 20

Start Loop coils 180 deg twist & prep Skin Electric

PressCoil form

Model check

M/C tapePre-tape

Final Tape

Apply Mylar

Micalast Load

Micalastic Impregnation

Final Press & Cure

Remove Mylar

Final gauge

ECP Tape

ECP oven cure

Strand & Final testPack &

ShipStop

Rotation schedule:Based on the cycle times above every 2Hrs, Rotate Final Taping operators with operators from “Skinning”, Electric Pressing. Coil forming & Model-checking.

This will increase productivity from 28 Coils/Day to 40 Coils/Day and ensure max exposure to F/T not more then

2hrs/day. Needed: Cross-functional training and ~ 1 week learning curve to achieve 85% operator efficiency

Results & Improvements Increased Coil Productivity by 30% from 28 to 40

Coils/day = $420K/Year Increased direct labour utilization by 26%

=$240K/Year Reduced in-process scrap from 20% to under 4% OEE improvement of 24% (from 62% to 84%) Flexible work Cells & cross functionally trained

workers able to help manage bottleneck efficiently MOL order on Final Tape exposure complied with Total Operational Savings = $ 800K

Benefits of cross functionally trained workers

Workers can do each others work, help out when someone is sick, on holidays, quit

Workers help improve bottleneck operations by helping out each other

Variety in work making it more full-filling

Training new workers

| | 27

| | 28

SMED (Single Minute Exchange Die)

Setup Time◦ Starts when last piece of previous job is complete; ends

when first good piece of next job is complete

Internal set-up: While machine is shut-down

◦ Strive to minimize this as process is not producing parts External set-up: While machine is working

◦ Prepare for set-up, get all tools/parts needed ready and beside the press before starting set-up

Office 5S Guideline Level 1 (Workstation Achievements)◦ Data and reports (hard & soft) are sorted into piles,

sections, drawers and multiple file locations: Cluttered Level 2 (Workstation Achievements)

◦ Data & reports are sorted into files, binders and single locations

◦ Metrics, basic labelling, some visual controls◦ Appearance is cleaner and more organized

Level 3 (Workstation Achievements)◦ All files, data and reports are organize and labelled◦ Metrics, information and 5S maps are available and posted◦ Maintenance of 5S activities, audits of 5S performance

Level 4 (Work Group Achievements)◦ Common standards for metrics, filing, labelling, file naming◦ Simple, clear and effective Visual Controls & Driver

Measure Boards◦ Maintenance of Work Group 5S activities, audits of 5S

performance Level 5 (Site and Business Unit (BU) Achievements)

◦ Common standards for metrics, filing, labelling, file naming◦ Simple, clear and effective Visual Controls◦ Maintenance of 5S activities, 5S audits

Can usually find things

Can find things in a reasonable amount of time

Can find any file or doc. In 30 seconds

Close colleagues can find any file or

doc. In 30 seconds

Any colleague can find any file or doc. In 30 seconds

| | 30

WHAT QUESTIONS DO YOU HAVE?