DoD Lean Six Sigma

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<ul><li> 1. Lean Six Sigma April 7, 2008 Ms. LaDona Kirkland </li> <li> 2. <ul><li>Mr. JD Sicilia </li></ul><ul><li>Director, DoD Lean Six Sigma Program Office </li></ul><ul><li>DUSD Business Transformation Office </li></ul>Lean Six Sigma </li> <li> 3. <ul><li>J.D. Sicilia </li></ul><ul><li>Director </li></ul><ul><li>DoD Lean Six Sigma Program Office </li></ul>7 April 2008 </li> <li> 4. Executive Summary <ul><li>DoD has a strategic imperative to institutionalize continuous process improvement </li></ul><ul><li><ul><li>Lean Six Sigma is the method of choice </li></ul></li></ul><ul><li>Lean Six Sigma provides a balanced and holistic improvement methodology </li></ul><ul><li><ul><li>Proven robust in both commercial and government applications </li></ul></li></ul><ul><li>DTIC has embraced Lean Six Sigma </li></ul><ul><li><ul><li>DoD Lean Six Sigma Program Office stands ready to support your deployment </li></ul></li></ul></li> <li> 5. The Department of Defense is engaged in an historic Lean Six Sigma deployment <ul><li>$515M budget and 5M people; the largest deployment ever undertaken </li></ul><ul><li>Similar to deploying LSS across a country! </li></ul>Millions of People Trillions of Dollars $515B 5M Gross Domestic Product* Population* *Source: World Bank, 2006 It would rank as 17 th largest economy (16 th with supplemental) It would rank as 110 th largest country by population If DoD were a country: With Supplemental </li> <li> 6. The stakes are high DoDs future success depends on Agility <ul><li>The world around us continues to change </li></ul><ul><li><ul><li>Middle East </li></ul></li></ul><ul><li><ul><li>Technology </li></ul></li></ul><ul><li><ul><li>Economy </li></ul></li></ul><ul><li><ul><li>Dynamic political/military situation </li></ul></li></ul><ul><li>Are DoD organizations agile enough to face the next crisis? </li></ul><ul><li><ul><li>With a full workload now, what gets dropped? </li></ul></li></ul><ul><li><ul><li>Do our people and processes have the capacity to respond immediately? </li></ul></li></ul><ul><li>Is our workforce agile enough to face the next crisis? </li></ul><ul><li>The status quo is unacceptable LSS provides the Warfighter a focused, enterprise framework for continuous improvement </li></ul></li> <li> 7. DoD leadership has chosen LSS based on its proven effectiveness April 30, 2007 DEPSECDEF memo <ul><li>Assign a CPI/LSS focal point to coordinate with the DoD CPI/LSS Program Office. </li></ul><ul><li>Establish a 12 to 18 month workforce training objective of 1% LSS black belt trained and 5% green belt trained personnel. Personnel selected should include top-rated staff members. </li></ul><ul><li>Include CPI/LSS in individual employee performance objectives. </li></ul><ul><li>Provide support to the DoD CPI/LSS Program Office in DoD-wide process improvement initiatives. </li></ul><ul><li>Report progress and outcomes of ongoing and completed CPI/LSS projects and activities to the DoD CPI/LSS Program Office every 30 days initially. </li></ul>Military Personnel ($125.2B) Family Housing and Facilities ($26.6B) Procurement, Research, Development, Test and Evaluation ($183.8B) Operations and Maintenance ($179.8B) FY 2009 Presidents Defense Budget DoD Leadership understands that Lean Six Sigma can help it do more with its fixed budget Total: $515B </li> <li> 8. So what makes LSS so good? <ul><li>Lean Principles: </li></ul><ul><li><ul><li>Specify what creates value from the customers perspective </li></ul></li></ul><ul><li><ul><li>Identify all the steps along the process chain </li></ul></li></ul><ul><li><ul><li>Make those processes flow </li></ul></li></ul><ul><li><ul><li>Make only what is pulled by the customer </li></ul></li></ul><ul><li><ul><li>Strive for perfection by continually removing wastes </li></ul></li></ul>Lean Methods Increase Efficiency Simplify Work Flows Focus On High-value Steps Eliminate Waste The Customer Is The Driving Force Behind Improvement Efforts Product or Service Outputs Six Sigma TM Methods Increase Consistency Reduce Variation Eliminate Defects The Customer Is The Driving Force Behind Improvement Efforts <ul><li>6 Sigma*: </li></ul><ul><li><ul><li>If you cannot express what you know in numbers, you dont know much about it; </li></ul></li></ul><ul><li><ul><li>If you dont know much about it, then you cant control it; </li></ul></li></ul><ul><li><ul><li>If you cant control it, you are at the mercy of chance. </li></ul></li></ul>The two methods complement each other and deliver lower operational cost as a natural by-product *Basic tenants articulated by Dr. Mikel Harry, the father of Six Sigma at Motorola </li> <li> 9. Lean Six Sigma is customer driven <ul><li>Voice of the Customer (VOC) </li></ul><ul><li>Confirming the VOC is critical for a successful Lean Six Sigma project </li></ul><ul><li>Lean Six Sigma is all about meeting or exceeding customer needs or Critical to Quality (CTQ) </li></ul><ul><li><ul><li>Quality </li></ul></li></ul><ul><li><ul><li>Cost </li></ul></li></ul><ul><li><ul><li>Delivery </li></ul></li></ul><ul><li>Many projects fail because the VOC is not correctly captured or confirmed </li></ul></li> <li> 10. The two methods are complementary <ul><li>Lean is a methodology that evaluates processes with a focus on </li></ul><ul><li><ul><li>Speed </li></ul></li></ul><ul><li><ul><li>Efficiency </li></ul></li></ul><ul><li>Lean aims to cut waste and remove non-value added activities </li></ul><ul><li><ul><li>Waste and value are measured with respect to the customers requirements </li></ul></li></ul>What you BELIEVE it is What it ACTUALLY is What you WANT IT TO BE Views of your process </li> <li> 11. Why is variation a critical point of emphasis? 6 Process Process 6 = 99% Good = 99.99966% Good <ul><li>20,000 lost articles of mail per hour </li></ul><ul><li>5,000 incorrect surgical operations per week </li></ul><ul><li>200,000 wrong drug prescriptions each year </li></ul><ul><li>No electricity for almost 7 hours each month </li></ul><ul><li>7 lost articles of mail per hour </li></ul><ul><li>1.7 incorrect surgical operations per week </li></ul><ul><li>68 wrong drug prescriptions each year </li></ul><ul><li>1 hour without electricity every 34 yrs </li></ul>Practical Examples Variation has a major impact on the customers perception of quality If we assume standard government processes operate at 1 these examples become: <ul><li>636,000 lost articles of mail per hour </li></ul><ul><li>159,000 incorrect surgical operations per week </li></ul><ul><li>6.36M wrong drug prescriptions each year </li></ul><ul><li>No electricity for approximately 2 days per week </li></ul>- 6 -5 -4 -3 -2 -1 1 4 5 6 Mean LSL USL Mean LSL USL - 6 -5 -4 -3 -2 -1 1 4 5 6 </li> <li> 12. DTIC has started its LSS journey <ul><li>Progress: </li></ul><ul><li><ul><li>8 Green Belts trained </li></ul></li></ul><ul><li><ul><li>8 Projects in progress </li></ul></li></ul>Assign responsibility and accountability to those responsible for the process Being accountable for our actions Improve process effectiveness and efficiency Spending taxpayer dollars wisely Improve our business processes to those of best in class Improving internal business processes Only work on projects which align with the strategy of DoD and national Defense initiatives Ensuring mission alignment with DoD and National Defense Initiatives Targets top performers to further enhance capabilities through LSS training as Green Belts and Black Belts Building and retaining a flexible, well-trained workforce Establish a goal of 6 sigma as our standard of excellence Sustaining excellence in what we do Understand the need to address the transition from old to new processes Adopting structured change management processes to ensure success Continually adjusting to the needs of the customer Meeting our customers changing needs through continual technological evolution, information agility and process innovation Valuing the voice of the customer Valuing our customers and understanding their requirements initially and continuously LSS is Committed to: DTIC is Committed to: </li> <li> 13. LSS can be used to improve DTICs core functions LSS is fundamentally customer focused: the methodology addresses review and improvement of transactional process including customer facing processes DTIC Customer Information Assistance: Marketing and registration services, providing reference, retrieval, referral, current awareness, document delivery and billing services, providing training programs, and conducting user conferences, seminars, exhibits, tours and briefings LSS Distributes Process Knowledge: rigorous tracking of project data and knowledge management; leverage automated tools to drive effectiveness DTIC Disseminate Information: Distribution and fulfillment of requests and orders such as documents, citations, in all formats and mediums LSS Uses Graphical Analysis Tools: to describe process inputs and outputs, store for future projects DTIC Format/Process/Preserve Information: Creation of descriptive and subject metadata for retrieval. LSS Demands Data Driven Process Improvement: use data to perfect the collection and management of data DTIC Collect Information: Acquisition and receipt of documents, summaries and other records for input to the Research &amp; Engineering (R&amp;E) databases that DTIC holds as central repository LSS Enablers: DTIC Core Function: </li> <li> 14. Projects have been identified and are underway Jack Jones Management of training information (including tracking) for employees is difficult and often does not meet reporting requirements. The current raining information collection is time consuming and redundant TRAINING INFORMATION MANAGEMENT Chau Vuong Improve general task request, tracking and management by prioritization, issue escalation, and dependencies (procurement, customer responses, digital certificates.) TASK MANAGEMENT Judy Berger Baseline production code bugs reported post-production to increase quality of DTIC products PRODUCTION CODE Shelley Ford Standardize various processes to increase efficiency and accuracy to track and report performance measures so that data is clean and reporting is consistent QUALITY IMPROVEMENT Pam Shepherd LaToya Thomas LaDona Kirkland Geoff Rassmussen Belt Candidate Numerous instances exist in which funding documents contain incorrect expense item-to-product code designations and time to process a funding document increased causing subjective reporting FINANCIAL MANAGEMENT TRACKING The current recruitment process is too long to allow for quick turnaround and cumbersome for hiring employees. This results with a loss in productivity and increased cost for retraining. PERSONNEL RECRUITMENT PROCESS Information on the Human Resources (HR) site is not current. The processes for posting current information or removing outdated information are not clearly defined. DTICKER CONTENT Information of the DTICKER is difficult to find. This leads to user frustration and less than optimal utilization of the DTICKER. Organization of the DTICKER is convoluted and not user friendly. Searches for information are unsatisfactory because it takes too long, too many mouse clicks are required to retrieve desired information, links are broken, or information is not found DTICKER NAVIGATION Description Project </li> <li> 15. <ul><li>DTIC </li></ul><ul><li><ul><li>Champion training </li></ul></li></ul><ul><li><ul><li>Project selection </li></ul></li></ul><ul><li><ul><li>Belt selection </li></ul></li></ul><ul><li><ul><li>Belt training </li></ul></li></ul><ul><li><ul><li>Project completion </li></ul></li></ul><ul><li>DoD LSS Program Office </li></ul><ul><li><ul><li>Improve effectiveness of Warfighter support </li></ul></li></ul><ul><li><ul><li><ul><li>Continue training at all levels and complete strategically aligned projects </li></ul></li></ul></li></ul><ul><li><ul><li>Horizontal integration and standardization efforts underway </li></ul></li></ul><ul><li><ul><li>Committed Leadership </li></ul></li></ul><ul><li><ul><li>Strategic Alignment </li></ul></li></ul><ul><li><ul><li>Data-driven Decisions </li></ul></li></ul><ul><li><ul><li>Emerging CPI Culture </li></ul></li></ul>Key next steps </li> <li> 16. Questions? </li> <li> 17. Backup </li> <li> 18. The deployment will increase DoDs maturity in well defined stages Leadership Buy-in Project Portfolio Generation Belt Selection/ Training Project Execution Results Tracking/ Lessons Learned Program Launch Institutionalize LSS/CPI Sustain LSS/CPI LSS/CPI Transformation Program Monitor and CPI Fiscal Year 2008 2009 2010 2011 2012 Aware Deploy Sustain </li> <li> 19. LSS projects must deliver tangible benefit to our end customerthe Warfighter Plan/Budget Procurement IT HR Legal Design/Dev Storage/Trans. Maintenance Disposal Human Resources Management Weapon System Lifecycle Management Materiel Supply &amp; Service Management Real Property &amp; Installations Lifecycle Management Financial Management Who are our people, what are their skills, where are they located? Who are our industry partners and what is the state of our relationship with them? What assets are we providing to support the warfighter and where are these assets deployed? How are we investing our funds to best enable the warfighting mission? Core Business Missions Warfighter Following a rigorous project selection process ensures that projects initiated at the functional level address the cross-functional Core Business Missions </li> <li> 20. Across DoD LSS is at varying levels of deployment Lean Six Sigma techniques implemented throughout the Army .. reaching a $2 billion-savings mark this year. better stewardship of taxpayer dollars where greater efficiency leads to improved effectiveness. . . creation of more readiness and assets within our budget through Lean Six Sigma. Air Force Smart Operations for the 21st Century (AFSO21) key behind learning processes is to achieve a transformation outcome that will save cost, time and effort. Projects Active: 3,071 Complete: 2,099 Belts Black: 902 Green: 2,411 Projects Active: 1,856 Complete: 5,434 Belts Black: 1,122 Green: 7,343 Projects Active: 1,423 Complete: 4,457 Belts Black: 260 Green: 871 Projects 1 Active: 541 Complete: 532 Belts 1 Black: 160 Green: 2,335 Burning Platform LSS Experience 3 yrs LSS Experience 5 yrs LSS Experience 2.5 yrs LSS Experience .5 yrs <ul><li>DoD level LSS goals </li></ul><ul><li>Support leaderships business transformation objectives </li></ul><ul><li>Drive cons...</li></ul></li></ul>