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The Lean Enterprise The Lean Enterprise Vital Links: Lean, Six Sigma and Change Management Lean Foundations Continuous Improvement Training
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The Lean Enterprise Vital Links: Lean, Six Sigma and Change Management Lean Foundations Continuous Improvement Training Lean Foundations Continuous Improvement.

Dec 22, 2015

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Page 1: The Lean Enterprise Vital Links: Lean, Six Sigma and Change Management Lean Foundations Continuous Improvement Training Lean Foundations Continuous Improvement.

The Lean EnterpriseThe Lean EnterpriseThe Lean EnterpriseThe Lean Enterprise Vital Links: Lean, Six Sigma and Change Management

Lean Foundations

Continuous Improvement Training

Lean Foundations

Continuous Improvement Training

Page 2: The Lean Enterprise Vital Links: Lean, Six Sigma and Change Management Lean Foundations Continuous Improvement Training Lean Foundations Continuous Improvement.

Explore the component parts of a Continuous Improvement Process (CIP) and how Six Sigma, Change Management and Lean methodologies work together within the DMAIC problem solving process.

Examine the importance, benefits and integration of ‘Lean Thinking’ to help achieve Company objectives and operational strategies.

Explain the need for providing more detailed Lean tools.

Provide additional resources for self study.

Learning ObjectivesLearning Objectives

Page 3: The Lean Enterprise Vital Links: Lean, Six Sigma and Change Management Lean Foundations Continuous Improvement Training Lean Foundations Continuous Improvement.

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N:(Need)

Need for Improvement

• Achieve Process Excellence• Address Process Summary Analysis (Most operations exhibit 15% - 30% waste!)• Differentiate brand/ market/ service/ value (i.e. John Crane, Wal-Mart, Maytag, Costco …)• Economic Benefits (reduce costs)• Enhance Safety, Improve Quality• Speed to Market (Total Cycle Time reduction)• Employee Satisfaction• Customer Delight !

What is the Importance of doing better (CIP)?What is the Importance of doing better (CIP)?

Page 4: The Lean Enterprise Vital Links: Lean, Six Sigma and Change Management Lean Foundations Continuous Improvement Training Lean Foundations Continuous Improvement.

 

- Ability to attain Better Caliber, High Profit Customers

- Identification of “Shining Stars” within the Organization

- Less Safety related Incidents, Accidents and Downtime

- Through Safer Operations and incorporation of workplace

organization (6S) a Reduction of Liability Insurance

Premiums FY20xx (5% to 15%)

- Reduction of COPQ - rework and scrap

(labor and material savings and associated benefits)

- Trained Team Leaders: 6S, Green/ Lean Belts, Black Belts

- Generation of ‘Mistake Proofing’ Ideas/ Processes

- Realization of $15,000 to $150,000 (or more) cost

savings per Black Belt/ Green/ Lean Belt project

What are some more benefits?What are some more benefits?

Page 5: The Lean Enterprise Vital Links: Lean, Six Sigma and Change Management Lean Foundations Continuous Improvement Training Lean Foundations Continuous Improvement.

 

- Better response to ever increasing Customer Demands

- Shorter Lead times, Less Inventory

- Less Debt/ reduced carrying charges/ COGS

- Continually decreasing Set-up times (increased capacity)

- More floor space for production

- Better reliability, maintainability and utilization

of equipment

- Longer equipment life

- Reduction of Supply Partners and reduction in

associated SCM administrative costs

- More satisfied employees

- Less tardiness, absenteeism, turnover

 

What are some more benefits?What are some more benefits?

Page 6: The Lean Enterprise Vital Links: Lean, Six Sigma and Change Management Lean Foundations Continuous Improvement Training Lean Foundations Continuous Improvement.

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$$Quality

Lean

Change Management

Metrics focused on results important to the customerand with the highest potentialfor adding hard dollarsto the bottom line

Disciplined systematic approach designed to maximize results

Safety and 5S together:

Integrated and aligned

people and processes

What are some developmental elements?What are some developmental elements?

Speed

Project Reviews

(DMAIC)

6SProject Leaders

Executive Sponsorship

“Lean Belt’s”

“Green Belt’s”

Prevention is the Key

Safety First ! Proactive Workforce

CAP

Safety

Trained “Champions”

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Six Sigma

Lean

Quality

Cost

Delivery

What are the 3 components comprising CIP?What are the 3 components comprising CIP?

S y First Pass Yield

Space

Inventory

Process

Product

Capacity

Lead Time

Setup

Process

Labor

Throughput

Trave

l (M

ater

ial)

Delay

In-P

roce

ss

Sto

rag

e

PPM

CO

PQ

Setup

Labor

Kanban

Voice of the Customer

Policy Deployment/ SOX / ISO

Visual Management

Supplier Quality

Process Capability

SOPs/Standard Work

Product Assurance (SPC, RCCA)

Communication

Team Dynamics

Turnover Rate

Cellularization

One Piece Flow

Manpower

Setup SOPs/ SMED

Maintenance SOPs (TPM)

Cell Cleanliness (6S)

Total Employee Involvement (TEI)

Measurement Systems

Change Management

Pro

cess Excellen

ce

II PP OO

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How do the 3 components come together?How do the 3 components come together? How do the 3 components come together?How do the 3 components come together?

Six SigmaSix SigmaMethodology for reducing variation and driving solutions of any existing process (using data with graphical and statistical analysis)Methodology for reducing variation and driving solutions of any existing process (using data with graphical and statistical analysis)

“Six Sigma / Change Management/ Lean L-I-N-K” When done in concert - powerful combination

“Six Sigma / Change Management/ Lean L-I-N-K” When done in concert - powerful combination

Change ManagementChange Management

Methodology for assuring that change is sustained within organizationMethodology for assuring that change is sustained within organization

The Lean Enterprise (including 6S)The Lean Enterprise (including 6S)Methodology (philosophy and rich tool set) that is particularly focused on identifying and eliminating waste and improving workflowsMethodology (philosophy and rich tool set) that is particularly focused on identifying and eliminating waste and improving workflows

Yield, Cycle Time, Re-Work

“Positively affecting the Continuous Improvement culture”

WIP, Lead Time, Waste & Wasted Motions

Page 9: The Lean Enterprise Vital Links: Lean, Six Sigma and Change Management Lean Foundations Continuous Improvement Training Lean Foundations Continuous Improvement.

What is the presentation ratio of Topics/ What is the presentation ratio of Topics/ Subject Matter within typical CIP training?Subject Matter within typical CIP training?(% material content)(% material content)

Six Sigma

(40%)Lean(40%)

Change Management

(20%)

Project Management, Facilitation/ Communication/ Presentation Skills, Report Writing and use of statistical software packages: i.e. Excel, Mini-Tab

Other subjects touched on:

Green Belt, 2 weeks

Black Belt, 4 weeks

Page 10: The Lean Enterprise Vital Links: Lean, Six Sigma and Change Management Lean Foundations Continuous Improvement Training Lean Foundations Continuous Improvement.

What are some CIP training topics?What are some CIP training topics?(A sampling of techniques/ tools taught)(A sampling of techniques/ tools taught)

Addressed in typical GB/ BB curriculum:

Others addressed in ‘Lean Enterprise’

modules only:

(single point lessons, more detailed)

TPMQuick Change-over

KanbanValue Stream Mapping

Visual ManagementStandard Work

6SKaizen

Takt TimeMistake ProofingProcess Mapping

Project CharterDecision Making

XY MatrixProcess Capability

SPC/ FMEA/ DoE etcChange Management

Some topics are addressed in

both:

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What is Six Sigma about?What is Six Sigma about?

Six Sigma …

- Measure defects in a process and …

(with rigor and discipline) systematically figure out ways to reduce them to zero.

“Puts practical tools to work to reduce variation at all levels

achieving tangible results of cost savings, employee,

customer and stakeholder satisfaction.”

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Quantify

DefineQuantify

Define MeasureMeasure AnalyzeAnalyze ImproveImprove ControlControl

What is the “DISCIPLINE” of Six Sigma?What is the “DISCIPLINE” of Six Sigma?

Project SelectionTeam Formation

Identify CTXs

Y

Project SelectionTeam Formation

Identify CTXs

Y

Define Process CapabilityValidate Measurement System

Define Process CapabilityValidate Measurement System

Define DefectsBaselineSet Goals

Identify x’s

Define DefectsBaselineSet Goals

Identify x’s

Find and Confirmvital few x’s

Pilot Solution

Y = f (x)

Find and Confirmvital few x’s

Pilot Solution

Y = f (x)

Ensure Solutionis Sustainable

Ensure Solutionis Sustainable

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What is the focus of Six Sigma?What is the focus of Six Sigma?

Variation reduction: Variation reduction:

Six Sigma attacks process variation

Six Sigma creates capable and predictable processes

Six Sigma is about measuring and improving how close we come to delivering on what we planned to do

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•Process Map•X - Y Matrix•Measurement System Analysis•Capability Analysis•Descriptive Statistics•Graphical Techniques

Box PlotsHistogramsScatter plotsTime Series PlotsRun ChartsPareto ChartsCheck Sheets

•Analysis of Variance•Correlation•Regression•Inferential Statistics

Central Limit theoremConfidence Intervals

•Failure Modes and Effects Analysis•Multi - vari Studies•Design of Experiments Fractional Experiments Full Experiments Response Surface Methods•Analysis of Means•Transformations•Sample Size Selection•Fishbone Diagrams•Hypothesis Testing•F - test. T - test•Chi - square test•Tests for Normality•Tests for Equal Variances•SPC Charts•Control Plans•DFSS•Statistical Tolerancing

What are some Six Sigma Tools?What are some Six Sigma Tools?

Page 15: The Lean Enterprise Vital Links: Lean, Six Sigma and Change Management Lean Foundations Continuous Improvement Training Lean Foundations Continuous Improvement.

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What is Change Management about?What is Change Management about?

Change Management …

- Change acceleration is a process to ease acceptance of new ideas. Effective Change Management assures that improvement initiatives remain in force and that organizations don’t revert back to the old ways (methods).

“Ensures that process and system improvements are permanent, gains

are realized, proven effective and continuously improved.”

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What is the Change Acceleration Process?What is the Change Acceleration Process?

Leading Change

Changing Systems & Structures

Share Need

Shape Vision

Get Buy-in

Make it last

Monitor Progress

Current State Transition State Improved State

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What are the steps for Managing Change?What are the steps for Managing Change?

Leading Change– Give people someone to follow – by you and your Champions actions.

Shared Need– Create an imperative to act now. Pass this on to others.

Shape Vision– Be precise about what you want to achieve and and make sure it is

widely understood and shared.

Get Buy-in– You must involve people and pass on your enthusiasm so that once

you start another project the change is sustained.

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Steps for Change (Cont.)Steps for Change (Cont.)

Make it Last– Ensure that all influences to confound or support change are

controlled.

Monitor Progress– Ensure that you are measuring effect not effort. Further publish

progress

Finally:

– Changing Systems and Structures• Making sure that management practices (Staffing,

development, rewards, measures, communication and organizational design) are used to compliment and reinforce change

.

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What are the elements to making What are the elements to making change last?change last?

Understanding

Clear path forward

ClearContinuous

Communication

Motivation/energy

Ability to adjust

Reflection/integration

Ongoing support/commitment

Making change

last

Leading Change

Changing systems & structures

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What is Lean about ?What is Lean about ?

The Lean Enterprise …

- Identify and eliminate Waste (Muda)

and

Wasteful Practices

Providing value in the eyes of the customer …

“any part of the process for which the customer is willing

to pay. Value added activities would be those involved in

producing and delivering goods and services.”

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DefineDefine MeasureMeasure AnalyzeAnalyze ImproveImprove ControlControl

What is the Alignment of Lean w/ DMAICWhat is the Alignment of Lean w/ DMAIC

6S activities

Inventory Accuracy

Takt Time

Value Stream Analysis

Line Balance

Standardized Operations/ Standard Work

Set-up Reduction

Visual Management/ Control

Kanban/ POU

TPM

Poka-Yoke

Lean Approaches Align with D-M-A-I-CLean Approaches Align with D-M-A-I-CLean Approaches Align with D-M-A-I-CLean Approaches Align with D-M-A-I-C

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How does Lean fit under D/M A I(*m) C ?How does Lean fit under D/M A I(*m) C ?

MeasureMeasure

I.D. Waste, CTXs, Cost Savings I.D. Waste, CTXs, Cost Savings

DefineDefine

Business CaseLean Assessment

Business CaseLean Assessment

AnalyzeAnalyze

Scope RelevantImprovementOpportunities

I.D. Project Areas/Teams

Scope RelevantImprovementOpportunities

I.D. Project Areas/Teams

ImproveImprove ControlControl

EstimateNew CapabilityMistake Proof

EstimateNew CapabilityMistake Proof

Particularly Applicable to “Agile” ManufacturingParticularly Applicable to “Agile” ManufacturingParticularly Applicable to “Agile” ManufacturingParticularly Applicable to “Agile” Manufacturing

Pilot / Assess

Impact (*measure)

Institutionalize

DefineDefine

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What is the focus of Lean?What is the focus of Lean?

Identification and elimination of waste Identification and elimination of waste

Lean creates value by eliminating waste and aligning processes

Lean creates standardized processes

A means of revealing other projects which may require ‘DMAIC’ problem-solving methodologies

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What are some Lean Tools?What are some Lean Tools?

One piece flowOne piece flow Pull production systemPull production system Level loading productionLevel loading production Cycle time reduction/ Set-up reductionCycle time reduction/ Set-up reduction Aligning processes to customer demand (Takt-Time)Aligning processes to customer demand (Takt-Time) Mistake proofingMistake proofing Elimination of the 7 elements of wasteElimination of the 7 elements of waste Visual Management/ Visual ControlVisual Management/ Visual Control 6S (5s + safety)6S (5s + safety) Value vs. Non-value added activitiesValue vs. Non-value added activities Kaizen ActivitiesKaizen Activities Best Practice SharingBest Practice Sharing

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Measure

Analyze

Improve

Control

Define

Do all methodologies incorporate DMAIC?incorporate DMAIC? Do all methodologies incorporate DMAIC?incorporate DMAIC?

Six Sigma (GB, BB, MBB project applications) Six Sigma (GB, BB, MBB project applications)

Yes ! … time between phases may vary however.

Lean

Yes ! … time between phases may vary however.

Lean6S 6S

Workplace organization

Rapid Implementation of Solution

Problem Solving/ Root Cause and Corrective Action

VA

RIA

TIO

N

VA

RIA

TIO

N

WA

ST

E

WA

ST

E

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Why the Need for additional Lean material?Why the Need for additional Lean material? Why the Need for additional Lean material?Why the Need for additional Lean material?

Operate in a higher standard of HS&E requirements.

(Safety)

Produce product and deliver services (processes) with Six Sigma capability.

(Quality)

Produce in smaller quantities with faster delivery turnarounds.

(Speed of execution)

Changing business climate …Changing business climate …

Increased expectations of performance:Increased expectations of performance:

Page 27: The Lean Enterprise Vital Links: Lean, Six Sigma and Change Management Lean Foundations Continuous Improvement Training Lean Foundations Continuous Improvement.

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When would a team use The Lean When would a team use The Lean Enterprise information (modules)?Enterprise information (modules)?

To strengthen already existing CIP vision, strategies, methodologies, projects …

__________________________________________________________________

Lean Enterprise (LE) is an additional set of foundational tools and techniques that teams

utilize to identify and eliminate waste and wasteful practices. They were developed to be self-taught (facilitated) by a Black Belt.

Adapting LE creates standardized processes

A means of revealing other projects which may require ‘DMAIC’ problem-solving methodologies

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How does adopting ‘Lean Thinking’ fit How does adopting ‘Lean Thinking’ fit into our Business Strategy?into our Business Strategy?

Lean application opportunities are identified through baseline assessment efforts (e.g. – CIP assessments, Quality audits, Internal audits, SOX, ISO audits et al)

Lean enhances understanding of current operating conditions, and through Value Stream Analysis, helps determine the areas and sequencing of improvement initiatives

With its ‘Process Analysis’ mindset - The Lean Enterprise, as part of CIP - integrates the strategic Corporate strategies around Process Excellence, Organizational Capability and Organic Growth

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How does adopting The Lean Enterprise How does adopting The Lean Enterprise principles help the Company?principles help the Company?

Lean Enterprise (LE) emphasizes prevention of waste: any extra time, labor or material spent producing a product or service that doesn’t add value to it.

LE can help reduce costs, achieve just-in-time delivery, and shorten lead times.

LE allows production of a wide variety of products and services, efficient and rapid changeover, efficient response to fluctuating demand, and increased quality.

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How does The Lean Enterprise help our How does The Lean Enterprise help our Customers?Customers?

Lean Thinking facilitates streamlining the front end of the business with transactional Kaizen events and frictionless e-business

We add value to customer relationships through customer-focused process improvement and joining in our customer’s process improvement initiatives

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How does The Lean Enterprise help our How does The Lean Enterprise help our Customers?Customers?

Through CIP (Lean, Six Sigma, Change Management), we strive to deliver the right product, at the right time, at the right price, with perfect quality every time.

We use on-time delivery, lead time and quality metrics to measure our performance

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How does The Lean Enterprise help our How does The Lean Enterprise help our Suppliers?Suppliers?

Developed to transform key suppliers into our long-term partners and leverage their capability

___________________________

Going Lean creates standardized processes. Many of our businesses represent a scorecard to supply partners – measuring their quality, on-time delivery, and other metrics

Increased supplier communication pays off in high efficiency

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Other SCM elements of the overall approach include:

– Supplier Managed Inventory, Kanban and consignment, as well as long term agreements to realize efficiencies and reduce cost targeting point-of-use delivery – significantly improving working capital

– ‘On-site Supplier Development’ (OSD) work with key suppliers - leading them to become self-directed learning organizations cognizant of incorporating available improvement technologies

How does The Lean Enterprise help our How does The Lean Enterprise help our Suppliers?Suppliers?

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PEOPLE

Driving

Growth Productivity

Results

Putting It All TogetherPutting It All TogetherPutting It All TogetherPutting It All Together

Continuous Improvement Process

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WhatWhat isis the “ the “essence”essence” ofof CIP?CIP?

Applying appropriate problem-solving Applying appropriate problem-solving tools for maximum Results! tools for maximum Results!

There is no single approach that guarantees project success. However there are some basics:

– Developing Objectives using SMART criteria – Developing a good Plan– Applying tried & tested tools (Six Sigma and Lean)– Getting Employee Involvement (collaborating teams)– Trusting Empowered People - who ACT ON FACT– Utilizing Brainstorming techniques– Encouraging Process Mapping and Process Analysis– Assuring control and mistake proofing– Accomplishing more with less– Celebrating success !

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How does Lean & Six Sigma drive results?How does Lean & Six Sigma drive results?

By Pursuing Perfection!By Pursuing Perfection!

Product and Process Improvement– Direct and indirect cost reductions: COGS– Process Analysis and Improvements: COPQ

Efficient and effective utilization of Resources– Labor contribution (Standard Hours)– Equipment Utilization (OEE)– Material Consumption (Spend)– G&A / Overhead Absorption

Employee Satisfaction– Retainment, Training, Development, Recognition

Stakeholder Delight– ROI, RONA

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Where can I learn more aboutWhere can I learn more about Lean Six Sigma ? Lean Six Sigma ? (Call Jay Watson 480 820 0877)(Call Jay Watson 480 820 0877)

These 2 books are quick reads…These 2 books are quick reads…

Leaning into Six SigmaLeaning into Six Sigma

(paperback)(paperback)

by by Barbara Wheat, Chuck Mills, Mike Carnell

The Gold MineThe Gold Mine

-by Freddy Ballé andby Freddy Ballé and Michael BalléMichael Ballé

-The Gold Mine: a Novel of Lean Turnaround deftly The Gold Mine: a Novel of Lean Turnaround deftly weaves together the technical and human pieces of weaves together the technical and human pieces of implementing lean manufacturing in an engaging story implementing lean manufacturing in an engaging story that readers will find both compelling and instructive. that readers will find both compelling and instructive.

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The Lean EnterpriseThe Lean EnterpriseThe Lean EnterpriseThe Lean Enterprise Vital Links: Lean, Six Sigma and Change Management

Lean Foundations

Continuous Improvement Training

Lean Foundations

Continuous Improvement Training