© QiA Inc. Contro l Plans Six Sigma Tools Takt Time 5-S Habits Work Instructi ons Kaizen Teams Quality in Action Inc. Lean/Sigma Combining the Speed of Lean with the Power of Sigma
Jan 21, 2015
© QiA Inc.
Control Plans
Control Plans
Six Sigma Tools
Six Sigma Tools
Takt TimeTakt Time
5-SHabits5-S
Habits
Work Instructions
Work Instructions
KaizenTeams
KaizenTeams
Quality in Action Inc.
Lean/SigmaCombining the Speed of Lean with the Power of Sigma
Lean/SigmaCombining the Speed of Lean with the Power of Sigma
© QiA Inc.
• General Electric, one of the early leaders in Six Sigma has made statements to the effect that they will save $5 - $10 billion in cost reductions alone in their investment in Six Sigma.
• The GE annual report prominently states: “…. Our Six Sigma quality initiative is changing the way we do everything.”
• General Electric, one of the early leaders in Six Sigma has made statements to the effect that they will save $5 - $10 billion in cost reductions alone in their investment in Six Sigma.
• The GE annual report prominently states: “…. Our Six Sigma quality initiative is changing the way we do everything.”
“If we don’t change our direction, we might end up where we’re headed.”
Chinese Proverb
© QiA Inc.
LEAN Manufacturing• LEAN teaches us about:WASTE, DEMAND, FLOW, DEFECT
PREVENTION, BALANCE
• WASTE All motion is waste. A perfect system is one that is self contained. Consider: where does everything come from? Where does everything go?
– A common Waste is stock piling. Inventory must be kept to a minimum. The optimum amount of available inventory is ZERO.
Scrap is the most common type of Waste. There are several kinds: Internal, External, Direct & Indirect.
• LEAN teaches us about:WASTE, DEMAND, FLOW, DEFECT
PREVENTION, BALANCE
• WASTE All motion is waste. A perfect system is one that is self contained. Consider: where does everything come from? Where does everything go?
– A common Waste is stock piling. Inventory must be kept to a minimum. The optimum amount of available inventory is ZERO.
Scrap is the most common type of Waste. There are several kinds: Internal, External, Direct & Indirect.
© QiA Inc.
Lean continued………….• DEMAND“TAKT TIME” is the demand on
the system to support the actual market requirements. The actual market requirement is known as PULL.
One purpose of a Pull System is to shut down an operation as soon as an abnormality occurs.
One must use this calculation: Divide the available manufacturing time in a period by the ACTUAL demand during that period.
• DEMAND“TAKT TIME” is the demand on the system to support the actual market requirements. The actual market requirement is known as PULL.
One purpose of a Pull System is to shut down an operation as soon as an abnormality occurs.
One must use this calculation: Divide the available manufacturing time in a period by the ACTUAL demand during that period.
© QiA Inc.
Lean continued………….• FLOW Also known as One Piece Flow. We
don’t want to BATCH or create FAKE Flows.
• DEFECT PREVENTION The system is designed to PREVENT rather than Detect.
– JIDOKA is the Japanese word for autonomation. Tools & fixtures as well as processing operations, are designed to detect problems and shut down when they occur.
• BALANCE Means: To Balance people and automation to optimize flexibility and balance the Work Flow.
• FLOW Also known as One Piece Flow. We don’t want to BATCH or create FAKE Flows.
• DEFECT PREVENTION The system is designed to PREVENT rather than Detect.
– JIDOKA is the Japanese word for autonomation. Tools & fixtures as well as processing operations, are designed to detect problems and shut down when they occur.
• BALANCE Means: To Balance people and automation to optimize flexibility and balance the Work Flow.
© QiA Inc.
Six SigmaSix Sigma• The basic framework behind Six Sigma is: DMAIC
• DEFINE What is the Objective? Goals?
• MEASURE Where are we NOW? Look at tools like: scrap reports, flow charts, Pareto, Cause & Effect, Distributions.
• ANALYZE Where are we GOING? Use tools like: Scatter diagrams, regression analysis, FMEA (Failure Mode & Effect Analysis), Hypothesis testing.
• IMPROVE What is the best way? Tools like: DOE (Design of Experiments), Functional Testing and Production Trials are employed.
• CONTROL We need to Control through Work Instructions and Control Plans. – Gauge Control, Mistake proofing and Preventative Maintenance.
• The basic framework behind Six Sigma is: DMAIC
• DEFINE What is the Objective? Goals?
• MEASURE Where are we NOW? Look at tools like: scrap reports, flow charts, Pareto, Cause & Effect, Distributions.
• ANALYZE Where are we GOING? Use tools like: Scatter diagrams, regression analysis, FMEA (Failure Mode & Effect Analysis), Hypothesis testing.
• IMPROVE What is the best way? Tools like: DOE (Design of Experiments), Functional Testing and Production Trials are employed.
• CONTROL We need to Control through Work Instructions and Control Plans. – Gauge Control, Mistake proofing and Preventative Maintenance.
© QiA Inc.
Basic DifferencesLean Six Sigma
Short/Quick Improvement Processes
Longer Term Project Periods
“Kaizen” – Many small
improvements
Bigger Solutions
“Rocket Science?”
Process Knowledge Based
Statistical Knowledge Based
Small Teams & Individuals
Black Belts often assisted by Green Belts
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Challenges
• Can anyone be a “Lean Practitioner”?– YES in fact this is the organizational goal
of Lean – EVERYONE is responsible and practicing Lean.
– It’s intuitive– It’s habit forming– It’s quick & fast – Doesn’t need Kaizen or even teams
• BLITZ
• Can anyone be a “Lean Practitioner”?– YES in fact this is the organizational goal
of Lean – EVERYONE is responsible and practicing Lean.
– It’s intuitive– It’s habit forming– It’s quick & fast – Doesn’t need Kaizen or even teams
• BLITZ
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Challenges
• Can anyone be a “Black Belt”?– No, if the statistical side of the world is
difficult for you maybe this isn’t your place.
• Can anyone be a “Green Belt”?– Sure, virtually everyone can be trained in
the concepts.
• Do you need to be a “Belt” to do this Sigma stuff?– We say: Yes
• Can anyone be a “Black Belt”?– No, if the statistical side of the world is
difficult for you maybe this isn’t your place.
• Can anyone be a “Green Belt”?– Sure, virtually everyone can be trained in
the concepts.
• Do you need to be a “Belt” to do this Sigma stuff?– We say: Yes
© QiA Inc.
The Hard Fact:
It is far easier for a Black or Green Belt to “pick-up” Lean and effectively operate the tools than it is for a Lean Practitioner to “pick-up” Six Sigma and practice it competently.
It is far easier for a Black or Green Belt to “pick-up” Lean and effectively operate the tools than it is for a Lean Practitioner to “pick-up” Six Sigma and practice it competently.
© QiA Inc.
The Dumbing Down of Six Sigma• Don’t be fooled into believing that by
just learning a few chart methods that you are REALLY doing Six Sigma.
• Or that Lean/Sigma is somehow simpler than either practice by itself.
• The Quality Community needs to recognize these dangers that erode our very profession!
• Don’t be fooled into believing that by just learning a few chart methods that you are REALLY doing Six Sigma.
• Or that Lean/Sigma is somehow simpler than either practice by itself.
• The Quality Community needs to recognize these dangers that erode our very profession!
© QiA Inc.
Recommendations
• Certify Black Belts
• Train Black Belts in Lean– Lean Certification
• Involve Green Belts in Lean Teams along with other Lean Team members
• Follow DMAIC for all Lean Events!
• Certify Black Belts
• Train Black Belts in Lean– Lean Certification
• Involve Green Belts in Lean Teams along with other Lean Team members
• Follow DMAIC for all Lean Events!
© QiA Inc.
• Lean Seeks to Optimize processes while Sigma Reduces Variation.
• It is truly a “blend” of methodologies.
• Lean Teams utilize the DMAIC model and use the tools.
• Lean Seeks to Optimize processes while Sigma Reduces Variation.
• It is truly a “blend” of methodologies.
• Lean Teams utilize the DMAIC model and use the tools.
“Combining the speed of Lean with the Power of Sigma”
© QiA Inc.
Time Frames
• Remember the timeline differences?– Lean: 2 to 5 day events– Even Kaizen Blitz – could happen anytime.– Six Sigma: 2- ?? Months
• Remember the objective differences?– Lean / Kaizen: Many small improvements– Six Sigma: Rocket Science (at least Science)
• Remember the timeline differences?– Lean: 2 to 5 day events– Even Kaizen Blitz – could happen anytime.– Six Sigma: 2- ?? Months
• Remember the objective differences?– Lean / Kaizen: Many small improvements– Six Sigma: Rocket Science (at least Science)
© QiA Inc.
Lean/Sigma
• Lean/Sigma looks at blending time frames as well as methodologies
• Not Days
• Not Months
• Probably more like Weeks
• Lean/Sigma looks at blending time frames as well as methodologies
• Not Days
• Not Months
• Probably more like Weeks
© QiA Inc.
Lean/Sigma – a typical project• Week 1
– DEFINE the objective.– Establish the Team. 3-7 members– Set Rules.– Train. (Day 1-2)– MEASURE the current situation.
• Create Current State Value Stream Maps• Financial Reports, Exec Reports, Loss
Function• Quality Reports, Customer Complaints,
Scrap Records,
• Week 1– DEFINE the objective.– Establish the Team. 3-7 members– Set Rules.– Train. (Day 1-2)– MEASURE the current situation.
• Create Current State Value Stream Maps• Financial Reports, Exec Reports, Loss
Function• Quality Reports, Customer Complaints,
Scrap Records,
© QiA Inc.
Lean/Sigma – a typical project• Week 2
– ANALYZE the process.• Send out the Team with assignments.• Team gathers analyze information.
Tools to use:– DOE (Design of Experiments)?– t test, f test, hypothesis testing?– Tukey Quick test?– Flow, Line Balance, Point of Use?– Takt Time, Buffer Stock, Inventory
• Week 2– ANALYZE the process.
• Send out the Team with assignments.• Team gathers analyze information.
Tools to use:– DOE (Design of Experiments)?– t test, f test, hypothesis testing?– Tukey Quick test?– Flow, Line Balance, Point of Use?– Takt Time, Buffer Stock, Inventory
© QiA Inc.
Lean/Sigma – a typical project
• Week 3– Review Action Items– IMPROVE Set up new DOE?
Functional tests? Production Trials?– Apply Lean concepts: Jidoka, Balance,
5S,Heijunka, Line Balancing, Cellular Layout, Quick Changeover
– Create Future State Value Stream Map
• Week 3– Review Action Items– IMPROVE Set up new DOE?
Functional tests? Production Trials?– Apply Lean concepts: Jidoka, Balance,
5S,Heijunka, Line Balancing, Cellular Layout, Quick Changeover
– Create Future State Value Stream Map
© QiA Inc.
Lean/Sigma – a typical project
• Week 3 or 4– Team gathers DOE or test information.– CONTROL Update current plans or
create new Standard Operating Procedures• PM• Gage Control
• Team Report & Recognition • Perform Closed Loop Surveillance
• Week 3 or 4– Team gathers DOE or test information.– CONTROL Update current plans or
create new Standard Operating Procedures• PM• Gage Control
• Team Report & Recognition • Perform Closed Loop Surveillance
© QiA Inc.
Process Step 1
Process Step 2
Process Step 3
The Value Stream
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Process Step 1
Process Step 2
Process Step 3
The Value Stream
The Castle Step
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Process Step 1
Process Step 2
Process Step 3
The Value Stream
Add the process times
3 min 15 min 5 min
© QiA Inc.
Process Step 1
Process Step 2
Process Step 3
The Value Stream
Add the wait times in-between
3 min 15 min 5 min
65 min 180 min
© QiA Inc.
Process Step 1
Process Step 2
Process Step 3
The Value StreamTotal the
wait times
3 min 15 min 5 min
65 min 180 min245 min
© QiA Inc.
Process Step 1
Process Step 2
Process Step 3
The Value Stream Total the Process times
3 min 15 min 5 min
65 min 180 min245 min
23 min
© QiA Inc.
Process Step 1
Process Step 2
Process Step 3
The Value Stream Total the Entire
Process
3 min 15 min 5 min
65 min 180 min245 min
23 min+268 min
© QiA Inc.
Process Step 1
Process Step 2
Process Step 3
The Value StreamThis is Non
Value Added
3 min 15 min 5 min
65 min 180 min245 min
23 min+268 min
© QiA Inc.
Process Step 1
Process Step 2
Process Step 3
The Value StreamThis is Value Added Time
3 min 15 min 5 min
65 min 180 min245 min
23 min+268 min
© QiA Inc.
Process Step 1
Process Step 2
Process Step 3
The Value Stream
3 min 15 min 5 min
65 min 180 min245 min
23 min+268 min
23 minutes VA / 268 min total process time = 8.6% ratio
© QiA Inc.
Process Step 1
Process Step 2
Process Step 3
But wait…. There’s more
3 min 15 min 5 min
65 min 180 min245 min
23 min+268 min
© QiA Inc.
Process Step 1
Process Step 2
Process Step 3
The Rework Loop
3 min + 3 min
65 min +65 min
310 min
26 min+336 min
26 minutes VA / 310 min total process time = 7.7% ratio
180 min
15 min 5 min
© QiA Inc.
A Recent Client Says:•Each time we loop it costs us an average of $31,637 and a minimum of $860
•Our total savings in cycle time through elimination of rework loops is: 11% or $10540 per cycle!
© QiA Inc.
Lean and Lean Sigma Examples
© QiA Inc.
Transportation Study
Transportation Description (Old Process)
Old Process Time
(Seconds)
Old Process Distance
(Feet)
Transportation Description (New Process)
New Process (Seconds)
New Process Distance
(Feet)Truck to storage 65 124 Truck to storage 48 60Storage to Giben 60 193 Storage to router 15 40Giben to Edge Bander 32 118 Router to edge bander 10 15Edge Bander to P2P 17 53 Edge bander to polisher 10 15PTP to Polisher 10 15 N/APolisher to Eagle Creek 80 192 Polisher to Eagle Creek 60 60
264 695 143 190
Annual Cost Savings21,500$
Distance Savings73%
© QiA Inc.
We Found Money!
• $60,000 in unknown raw materials.
• African Mahogany
• Red & White Oak• Old Forest Eucalyptus
• $60,000 in unknown raw materials.
• African Mahogany
• Red & White Oak• Old Forest Eucalyptus
© QiA Inc.
Creating Metrics for Sustainability
© QiA Inc.
Quality Measures Comparisons
CPK Sigma Level DPM(Defects per
Million)
0.33 1.0 600,000
0.667 2.0 308,538
1.00 3.0 66,807
1.33 4.0 6,210
1.67 5.0 233
2.00 6.0 3.4
1.5 sigma shift has been applied
© QiA Inc.
Hiring Process Cycle TimeIndividuals (Xi) Chart
78.95UCL
CL 49.25
LCL 19.5519.5
29.5
39.5
49.5
59.5
69.5
79.5
89.5
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Ela
psed
Tim
e (D
ays)
Data Points
UCL
+2 Sigma
+1 Sigma
Average
-1 Sigma
-2 Sigma
LCL
© QiA Inc.
Hiring Process Cycle TimeIndividuals (Xi) Chart
FUTURE EXAMPLE
43.06
78.95UCL
CL
26.69
49.25
LCL
10.32
19.55
9.4
19.4
29.4
39.4
49.4
59.4
69.4
79.4
89.4
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
Ela
psed
Tim
e (D
ays)
Data Points
UCL
+2 Sigma
+1 Sigma
Average
-1 Sigma
-2 Sigma
LCLK
aize
n E
vent
Jun
e 20
06
© QiA Inc.
Account Receivables Process TimeFUTURE EXAMPLE
115.65
219.08UCL
CL
82.67
194.42
LCL
49.68
169.75
0
50
100
150
200
250
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
Hou
rs
Data Points
UCL
+2 Sigma
+1 Sigma
Average
-1 Sigma
-2 Sigma
LCL
KA
IZE
N E
VE
NT
JU
LY
- A
UG
'0
6
CURRENT STATE Est.FUTURE STATE
© QiA Inc.
• “60% to 80% of all costs related to meeting customer demand are Administrative or Non-Production Related functions.”
– Value Stream Management for the Lean Office, 2004, Don Tapping & Tom Shuker
• “60% to 80% of all costs related to meeting customer demand are Administrative or Non-Production Related functions.”
– Value Stream Management for the Lean Office, 2004, Don Tapping & Tom Shuker
© QiA Inc.
Spaghetti Diagram – Valessa C
© QiA Inc.
Spaghetti Diagram – Beth C.
© QiA Inc.
Summary –Business Kaizen Event• Paperwork Reduction
– Modified forms to reduce lead-time, increase communication with advisors.
– Consolidated several forms to eliminate redundancy. • Cycle time Reduction
– 39% reduction in through-put time.– 51 to 31 Average days
• Creation of function measurable (Cycle Time Chart)• Point Kaizens
– 17 opportunities• New Event – Orientation Kaizen• 30 – 60 day follow through list.
• Paperwork Reduction– Modified forms to reduce lead-time, increase
communication with advisors.– Consolidated several forms to eliminate redundancy.
• Cycle time Reduction– 39% reduction in through-put time.– 51 to 31 Average days
• Creation of function measurable (Cycle Time Chart)• Point Kaizens
– 17 opportunities• New Event – Orientation Kaizen• 30 – 60 day follow through list.
© QiA Inc.
Unusual Events
© QiA Inc.
Current Process• We have two processes
– The external vendor lumber process– The (internal) Lumber process
• We have two processes– The external vendor lumber process– The (internal) Lumber process
© QiA Inc.
© QiA Inc.
Distribution & Stores
Distribution
Store
Store
Store
Store
Store
Vendor
Vendor
Vendor
Vendor
Vendor
Vendor
Vendor
© QiA Inc.
Future ProcessThe Future Process centralizes the purchasing
function and involves new partners: 1. Lumber Category Manager 2. Purchasing
The Future Process centralizes the purchasing function and involves new partners: 1. Lumber Category Manager 2. Purchasing
© QiA Inc.
Vendors
Merchandising(Cat Managers)
Events & Programs
Vendor Program ProcessRev A
Co-op(GateKeeper)
Accounting
Purchasing
Marketing/Creative
Financial Planning
CURRENT PROCESS (sometimes)
VendorsSALES
BILLING
PROOF of PERFORMANCE
PROMOVehicles
AGREEMENTS
SCORECARD
DATA
INTERNETSALES
Transportation
DATA
PROOF of PERFORMANCE
© QiA Inc.
Vendors
Merchandising(Cat Managers)
Vendor Program ProcessRev C
Financial Planning
CURRENT PROCESS (sometimes)
Vendors
SALES
BILLING
PROMOVehicles
AGREEMENTS
SCORECARD(Future)
DATA
Transportation(Future)
DA
TA
Program & Promo Claims
Database
Co-op
MarketingAssistant
Accounting
Purchasing
Retail
Marketing
Internet
Creative
CURRENT PROCESS (sometimes)
© QiA Inc.
$$$ “What If’s?” Current Vendors Terms Discount Average @ 1.5 % $368,901
Current Vendors Terms Discount Average @ 2.0 % $491,868
Remaining Vendors Terms Discount Potential @ 1.0% $214,027(Additional $$ to bottom line)
Remaining Vendors Terms Discount Potential @ 1.5% $321,041(Additional $$ to bottom line)
Remaining Vendors Terms Discount Potential @ 2.0% $428,055(Additional $$ to bottom line)
© QiA Inc.
Injection
M
oldin
g
Move
Lean/Sigma
Combo event
DEFECT
DEFECT
© QiA Inc.
Injection
M
oldin
g
Jidoka Autonomation
Autonomation transfers a level of human intelligence to automated machinery. Machines detect a single
defective part and immediately stop while
asking for help.
U-S
hap
ed C
ell
Feedback loop
© QiA Inc.
Injection
M
oldin
g
Jidoka Autonomation
U-S
hap
ed C
ell
Six Sigma ProjectReducing Variation
thru DOE
© QiA Inc.
Injection
M
oldin
g
Jidoka Autonomation
U-S
hap
ed C
ell
Lean Kaizen EventCellular Production
& Jidoka
© QiA Inc.
This project was the result of Lean/Sigma thinking. A robot-camera system added to an injection molding press resulted in documented 6 sigma quality, less than 3.4 defects per million.
© QiA Inc.
Lean/SigmaCombining the Speed of Lean with the Power of Sigma
Lean/SigmaCombining the Speed of Lean with the Power of Sigma