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  • 1. Lean Six Sigma April 7, 2008 Ms. LaDona Kirkland
  • 2.
    • Mr. JD Sicilia
    • Director, DoD Lean Six Sigma Program Office
    • DUSD Business Transformation Office
    Lean Six Sigma
  • 3.
    • J.D. Sicilia
    • Director
    • DoD Lean Six Sigma Program Office
    7 April 2008
  • 4. Executive Summary
    • DoD has a strategic imperative to institutionalize continuous process improvement
      • Lean Six Sigma is the method of choice
    • Lean Six Sigma provides a balanced and holistic improvement methodology
      • Proven robust in both commercial and government applications
    • DTIC has embraced Lean Six Sigma
      • DoD Lean Six Sigma Program Office stands ready to support your deployment
  • 5. The Department of Defense is engaged in an historic Lean Six Sigma deployment
    • $515M budget and 5M people; the largest deployment ever undertaken
    • Similar to deploying LSS across a country!
    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
  • 6. The stakes are high DoDs future success depends on Agility
    • The world around us continues to change
      • Middle East
      • Technology
      • Economy
      • Dynamic political/military situation
    • Are DoD organizations agile enough to face the next crisis?
      • With a full workload now, what gets dropped?
      • Do our people and processes have the capacity to respond immediately?
    • Is our workforce agile enough to face the next crisis?
    • The status quo is unacceptable LSS provides the Warfighter a focused, enterprise framework for continuous improvement
  • 7. DoD leadership has chosen LSS based on its proven effectiveness April 30, 2007 DEPSECDEF memo
    • Assign a CPI/LSS focal point to coordinate with the DoD CPI/LSS Program Office.
    • 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.
    • Include CPI/LSS in individual employee performance objectives.
    • Provide support to the DoD CPI/LSS Program Office in DoD-wide process improvement initiatives.
    • Report progress and outcomes of ongoing and completed CPI/LSS projects and activities to the DoD CPI/LSS Program Office every 30 days initially.
    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
  • 8. So what makes LSS so good?
    • Lean Principles:
      • Specify what creates value from the customers perspective
      • Identify all the steps along the process chain
      • Make those processes flow
      • Make only what is pulled by the customer
      • Strive for perfection by continually removing wastes
    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
    • 6 Sigma*:
      • If you cannot express what you know in numbers, you dont know much about it;
      • If you dont know much about it, then you cant control it;
      • If you cant control it, you are at the mercy of chance.
    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
  • 9. Lean Six Sigma is customer driven
    • Voice of the Customer (VOC)
    • Confirming the VOC is critical for a successful Lean Six Sigma project
    • Lean Six Sigma is all about meeting or exceeding customer needs or Critical to Quality (CTQ)
      • Quality
      • Cost
      • Delivery
    • Many projects fail because the VOC is not correctly captured or confirmed
  • 10. The two methods are complementary
    • Lean is a methodology that evaluates processes with a focus on
      • Speed
      • Efficiency
    • Lean aims to cut waste and remove non-value added activities
      • Waste and value are measured with respect to the customers requirements
    What you BELIEVE it is What it ACTUALLY is What you WANT IT TO BE Views of your process
  • 11. Why is variation a critical point of emphasis? 6 Process Process 6 = 99% Good = 99.99966% Good
    • 20,000 lost articles of mail per hour
    • 5,000 incorrect surgical operations per week
    • 200,000 wrong drug prescriptions each year
    • No electricity for almost 7 hours each month
    • 7 lost articles of mail per hour
    • 1.7 incorrect surgical operations per week
    • 68 wrong drug prescriptions each year
    • 1 hour without electricity every 34 yrs
    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:
    • 636,000 lost articles of mail per hour
    • 159,000 incorrect surgical operations per week
    • 6.36M wrong drug prescriptions each year
    • No electricity for approximately 2 days per week
    - 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
  • 12. DTIC has started its LSS journey
    • Progress:
      • 8 Green Belts trained
      • 8 Projects in progress
    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:
  • 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 pro

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