The Lean Enterprise The Lean Enterprise Vital Links: Lean, Six Sigma and Change Management Lean Foundations Continuous Improvement Training
Dec 22, 2015
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
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
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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)?
- 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?
- 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?
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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
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
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?
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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
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:
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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.
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