6811332 lean six sigma presentation 1

1©Vincent Gaspersz, CFPIM, SSMBB

Lean Sigma Management System(Streamlining The Business Process)

Presented By:

Vincent Gaspersz, CFPIM, SSMBB


Agenda

�Focus on Lean (Lean Definition, Lean House, Lean Principles)

�Focus on Six Sigma (Contemporary Six Sigma Approach)

�Lean Sigma Integrated Management System (Approach and Benefits)

�Lean Sigma Roadmap

�Questions


QUESTION?? Do you know your process cycle efficiency?

? How much time do you need to produce one piece of product from the beginning to the end of processes?

? What is your capacity? Are you operating at optimum capacity? Do you know your plant OEE (Overall Equipment Effectiveness)?

? Do you know your plant capability process? At what sigma level, do your plant operating now?


ISO 9000:2000

Quality Initiatives

Statistical Quality Control

Continuous Improvement/Kaizen

Malcolm Baldrige National Quality Award

Total Productive Maintenance

Supply Chain Management

Quality Circles

ISO 9000 Standards

Reengineering

Theory of Constraints

Lean Manufacturing

Six Sigma Quality

Lean Sigma

??????

ISO 9000:2000


Focus on Lean(Lean Principles)


Achieving “Flow” is a Key Objective inApplying Lean Principles within an Enterprise

Achieving “Flow” is a Key Objective inApplying Lean Principles within an Enterprise

INFORMATION FLOW

MATERIAL FLOW

ConceptProduct

DefinitionDetailedDesign

Test &Validation

ProductionProductSupport

Pre-Concept

Cu

sto

me

rV

alu

e

Lean Fundamentals

Lean Product Development Process

“The continuous movement of products and informationthrough the value stream. The goal is to minimize ‘idle

time’ which equates to waste . . .”


Lean Manufacturing HouseBest Quality - Lowest Cost - Shortest Lead Time

Through shortening the Manufacturing Flow by Eliminating Waste

Just in Time“The right part

at the right time

in the right amount”

• Continuous Flow• Pull System• Level Production(Heijunka)

Jidoka“Built in Quality”

• Manual / AutomaticLine Stop

• Labor-MachineEfficiency

• Error Proofing• Visual Control

Flexible, Capable,

Highly Motivated

People

Standardized WorkTotal Productive Maintenance

Robust Products & ProcessesSupplier Involvement

Operational Stability


The 5 Interdependent Lean Principles

1 2

5

4 3

Lean is a

systematic approach to identifying and eliminating waste (non-value-added activities) through value stream continuous improvement by flowing the product at the pull of the customer in pursuit of perfection


Step 1. Customer Value Definition

� Value = Value-Added (VA) + Non-Value-Added (NVA)

� Non Value Added = WASTE

“Anything that adds Cost

to the product

without adding Value” = WASTE

“Anything that adds Cost

to the product

without adding Value” = WASTE


• Value-Added (VA) Activities must meet the following three criteria:

1. The customer must be willing to pay for the activity

2. The part or object must change

3. It must be done right the first time

All other activities are Non-Value-Added (NVA)

and considered sources of waste !!!

The Key Principles of “Lean” are to Identify Non-Value-Added Activities and Find Ways to Eliminate Waste

The Key Principles of “Lean” are to Identify Non-Value-Added Activities and Find Ways to Eliminate Waste

Value-Added vs. Non-Value-Added

Remember: All Three Criteria Must be Satisfied


Lean Manufacturing� is a manufacturing philosophy which shortens the time line between

the customer order and the product shipment by eliminating waste.

CustomerOrder

Waste ProductShipment

Time

CustomerOrder

ProductShipment

Time (Shorter)

Business as Usual

Waste

Lean Manufacturing


Step 2. Value Stream Analysis

VALUE STREAM MAPPING

Follow a “product” or “service” from beginning to end, and draw a visual representation of every process in the material & information flow. Then, draw (using icons) a “future state” map of how value should flow.


Value Stream Map


Process Cycle Efficiency =

Total Value-Added Time/

Total Cycle Time =

4/116,5 = 0,0343 = 3,43%


Lean: Value vs Non-Value

Value-added Ratio at “Lean” company

50% Non-value-added 50% Value-added

Value-added Ratio at typical manufacturing company

95% Non-value-added5% Value

Toyota is 43%Japan is 50%

North America is 70 to 95%

Receive Order Ship Product

= Value-adding Operation Time (actual assembly or manufacturing operations)

= Non-value-adding Time (time customers will not pay for, such as rework, moving)


97% NVA3%VA

Most “Traditional” Process Improvement

. . . Achieve this . . .

97% NVA

Teams Attack this . . .

Typical Value Stream Ratio of Value-Added to Non-Value-Added Activity

. . . and Ignore this

Source: C. Fiore; Lean Strategies for Product Development, ASQ, 2003

Where’s the Real

Opportunity?

The Process Improvement “Pitfall”

Lean Teams


Current State Value Stream Map


Step 3. Continuous Flow

� Continuous Flow Through Value Stream� Creates less inventory

� Lower throughput time

� Increases production

Can be achieved by:� Improving shop floor layout (not restrict or add movement,

clean and organized, cell layout, meet the customer demand)

� Reducing in active (obsolete) inventory


Continuous Flow Production

Flow with JIT

Traditional Flow

CustomersSuppliers

Customers

Suppliers

Production Process

(stream of water)

Inventory (stagnant

ponds) Material

(water in

stream)


Takt Time

Takt Time Volume (Daily production requirement)

Time (Available seconds per working day) =

Cycle Time =Actual time required for a worker to complete one cycle of

his/her process. For a machine or cell, time from completion

Of one item to completion of the next item

Sets pace of production to

match pace of sales.


Continuous Flow Improvement


Continuous Flow Improvement

A D ECB

1 min.Takt Time (1 min.)

Operators

A D ECB

1 min.Takt Time (1 min.)

Operators

Cycle Time


Future State Value Stream Map


BENEFITS OF CREATING FLOW


Step 4. Pull System� Pull the product through the value stream� Authorize production� Capture Work-In-Process (WIP)


5. PERFECTION� Create a clear vision of perfection

�Maximize customer value through NVA reduction and Bottom Line improvement through Value Stream

� Make waste visible and evident.“The continuous movement of products and information through the value stream. The goal is to minimize ‘idle time’ which equates to waste . . .”

� Problem solving. Achieving “Flow” is a Key Objective in Applying Lean Principles within an Enterprise


FOCUS ON SIX SIGMA(Contemporary Approach)


Focused on Customer Value

Historical Six SigmaHistorical Six SigmaHistorical Six SigmaHistorical Six Sigma

Value StreamValue StreamValue StreamValue StreamCustomerCustomerCustomerCustomer

ValueValueValueValue

Defect ReductionDefect ReductionDefect ReductionDefect Reduction

LSLLSLLSLLSL USLUSLUSLUSL

Contemporary Six Sigma Contemporary Six Sigma Contemporary Six Sigma Contemporary Six Sigma

(Lean Six Sigma)(Lean Six Sigma)(Lean Six Sigma)(Lean Six Sigma)


Quality Processes Yield Quality Results

ConsistentProcess

DesiredResults

InconsistentProcess

InconsistentResults

Traditional = People doing whatever they can to get results

Six Sigma = People using standard process to get results


Market

Inputs Business

Processes

SuppliersCritical Customer

RequirementsProcess

Outputs

Defects

Variation in the Process Output causes Defects that are seen by the customer

Output Variation is caused by Variation in Process Inputs and by Variation in the Process itself

Contemporary Six Sigma Focus on the Reduction of Variation that Generates

Defects for Customers


Master

Black Belt

Black Belts

Green Belts

Team Members

Quality Fundamentals/ Kaizen Now

Ch

am

pio

ns

Mentor, trainer, and coach of Black Belts and others in the organization.

Leader of teams implementing the six sigma methodology on projects.

Delivers successful focused projects using the six sigma methodology and tools.

Participates on and supports the project teams, typically in the context of his or her existing responsibilities.

Responsible for supporting the Deployment Strategy

within Line of Corporate Business/Customer Segment Deployment

Champions

Six Sigma

Taining


LEAN SIGMA(Streamlining The Business Process)


Lean Six Sigma

Lean� Flow Focused� Reduced Flow Time � Remove Waste� Faster Throughput � Less Inventory

Six Sigma� Quality Focused� Uniform Process Output� Reduce Variation� Improve Process Capability� Improved Quality

Lean and Six Sigma are Complimentary � Lean Six Sigma


Lean Six Sigma Tools

Lean Tools� Value Stream Analysis� 5-S� Kaizen Blitz� One Piece Flow� Pull Systems/Kanban� Work Cells� Visual Control� TPM� Vendor Managed Inventory� etc

Six Sigma Tools� DMAIC/DMADV Approach � Statistical Process Control� FMEA � Capability Analysis� ANOVA/ANCOVA� DOE/Taguchi Experiments� Process Optimization� etc


Value Stream

(Continuous Flow Improvement)

(Random Improvement)

(Good Luck)

2 MBB,25 BBs,

100 GBs,500 YBs

Value Stream

Flexible, Capable,Highly Motivated

(Good Luck)

2 MBBs,25 BBs,

100 GBs,500 YBs

(Random Improvement)

(Systematic Continuous Flow Improvement)


Which Business Function Needs Lean Six Sigma?

As long as there is a process that produces an output, whether it isa manufactured product, data, an invoice, etc…, we can apply the

Lean Six Sigma Breakthrough Strategy!!!!

Lean-

Six Sigma

MFG.

DESIGNSERVICE

PURCH.

MAINT.

ADMIN.

QA

Marketing


Lean Six Sigma Product Development Overview

Phase 2Concept

Phase 1Pre-concept

Phase 3Product

Definition

Phase 4DetailedDesign

Phase 5Integration

& TestValidation

Phase 6Production &

Operation

CUSTOMERCTQ’S

BUSINESSCTQ’S

TECHNICALCTQ’S

TECHNICALREQUIREMENTS

LIST

Manufacturing ProcessControl

Lean Six Sigma

Product Development Process

Lean Product Development Supplier Rationalization

Quality Improvement

Cycle Time and Cost Performance Improvement


Lean Six Sigma Impact on Process!!

First Time Yield

(FTY) Quality• Standardized Work

• Error Proofing

• Root Cause Analysis

– Problem Solving

• Predictable Processes

– Machine Reliability

– Total Productive

Maintenance

– Improved up-time

• Reduced scrap & repairs

People• Skilled, multi-function

workers

– Training

– Employee development

• Black Belt/Green Belt

Projects Team:

– Quality

– Safety

– Productivity

– Cost

– ROI Project

• Structured feedback meetings

• Empowerment

– Involvement

– Accountability

– Responsibility

– Authority

Lean Six Sigma

Approach

• Customer Value Definition

• Value Stream Analysis

• Continuous Flow

• Pull production

• Continuous Flow

Improvement (NVA/Waste

Elimination and Variation

Reduction/Process

Capability Improvement)


BENEFIT OF LEAN SIGMAMANAGEMENT SYSTEM


LEAN SIGMA ROADMAP


GARIBALDI INDUSTRIES APPROACH

ISO 9001:2000Lean-Sigma

On-time

Delivery

Zero Defects

100% Customer

Satisfaction

High Quality Glass Product

Process

Minimum Lead Time

Dual Kanban

MaterialMachineLaborMin.Input

Max.Output

Standardized Product & Processes (Procedures)

CompetitiveAdvantage

ROI (MINIMUM): ??%/year

Garibaldi Approach:

• Increase capacity--without adding more people & resources

• Reduce cost of goods sold

• Maintain or reduce price to be competitive price

• Increase sales

• Increase reward & recognition to all Garibaldi Employees


The End

Smarter:

• Shorter Cycle Time

• Smoother processes

• Simpler rules or procedures

SMARTERSpecific Goals

Measurable

Achievable

Result-oriented

Timely

Empowerment

Reward & Recognition

Contact:Vincent Gaspersz, CFPIM, SSMBBPhone: 0251-332933 or

0813-1940-6433E-mail: [email protected]

6811332 lean six sigma presentation 1

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