Download - DoD Lean Six Sigma
Lean Six Sigma
April 7, 2008
Ms. LaDona Kirkland
Mr. JD Sicilia
Director, DoD Lean Six Sigma Program Office
DUSD Business Transformation Office
Lean Six Sigma
Department of Defense Lean Six Sigma Deployment
UNCLASSIFIED
J.D. SiciliaDirector
DoD Lean Six Sigma Program Office
7 April 2008
Lean Six Sigma
UNCLASSIFIED
Executive SummaryExecutive 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
Lean Six Sigma
UNCLASSIFIED
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The Department of Defense is engaged in an historic The Department of Defense is engaged in an historic Lean Six Sigma deployment Lean Six Sigma deployment
• $515M budget and 5M people; the largest deployment ever undertaken
• Similar to deploying LSS across a country!
Mill
ion
s o
f P
eop
le
Tri
llio
ns
of
Do
llars
$515B
5MGross Domestic Product* Population*
*Source: World Bank, 2006
It would rank as 17th largest economy
(16th with supplemental)
It would rank as 110th largest country
by population
If DoD were a country:
With Supplemental
Lean Six Sigma
UNCLASSIFIED
The stakes are high… The stakes are high… ……DoD’s future success depends on AgilityDoD’s 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
Lean Six Sigma
UNCLASSIFIED
DoD leadership has chosen LSS based on its proven DoD leadership has chosen LSS based on its proven effectivenesseffectiveness
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.
35%
24%
5%36%
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 President’s Defense Budget
DoD Leadership understands that Lean Six Sigma can help it do more with its fixed budget
DoD Leadership understands that Lean Six Sigma can help it do more with its fixed budget
Total: $515B
Lean Six Sigma
UNCLASSIFIED
So what makes LSS so good?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“As-Is Flow” “To-Be Flow”
Increase Efficiency
Simplify Work Flows
Focus On High-value Steps
Eliminate Waste
The Customer Is The Driving Force Behind Improvement Efforts
Product or Service Output
Critical Customer Requirement
Defects: Service unacceptable to
customer
B A
Product or Service Output
Critical Customer Requirement
Defects: Service unacceptable to
customer
B A
Product or Service Outputs
Six SigmaTM 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 don’t know much about it;
If you don’t know much about it, then
you can’t control it;
If you can’t 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
Lean Six Sigma
UNCLASSIFIED
Lean Six Sigma is customer drivenLean 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
Lean Six Sigma
UNCLASSIFIED
The two methods are complementaryThe 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 customer’s requirements
What you BELIEVE it is… What it ACTUALLY is… What you WANT IT TO BE…
Views of your process
Lean Six Sigma
UNCLASSIFIED
Why is variation a critical point of emphasis?Why is variation a critical point of emphasis?
-6-5-4-3-2-1 1456
MeanLSL USLMeanLSL USL
-6-5-4-3-2-1 1 4 5 66 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 customer’s perception of qualityVariation has a major impact on the customer’s 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
Lean Six Sigma
UNCLASSIFIED
DTIC has started its LSS journeyDTIC has started its LSS journey
Progress:8 Green Belts trained8 Projects in progress
DTIC is Committed to: LSS is Committed to:
Valuing our customers and understanding their requirements
initially and continuously
Valuing the voice of the customer
Meeting our customers’ changing needs through continual
technological evolution, information agility and process
innovation
Continually adjusting to the needs of the customer
Adopting structured change management processes to ensure
success
Understand the need to address the transition from old to new
processes
Sustaining excellence in what we do Establish a goal of 6 sigma as our standard of excellence
Building and retaining a flexible, well-trained workforce Targets top performers to further enhance capabilities through
LSS training as Green Belts and Black Belts
Ensuring mission alignment with DoD and National Defense
Initiatives
Only work on projects which align with the strategy of DoD and
national Defense initiatives
Improving internal business processes Improve our business processes to those of best in class
Spending taxpayer dollars wisely Improve process effectiveness and efficiency
Being accountable for our actions Assign responsibility and accountability to those responsible for
the process
Lean Six Sigma
UNCLASSIFIED
LSS can be used to improve DTIC’s core functionsLSS can be used to improve DTIC’s core functions
DTIC Core Function: LSS Enablers:
DTIC Collect Information: Acquisition and receipt of
documents, summaries and other records for input to the
Research & Engineering (R&E) databases that DTIC holds
as central repository
LSS Demands Data Driven Process Improvement: use
data to perfect the collection and management of data
DTIC Format/Process/Preserve Information: Creation of
descriptive and subject metadata for retrieval.
LSS Uses Graphical Analysis Tools: to describe process
inputs and outputs, store for future projects
DTIC Disseminate Information: Distribution and fulfillment
of requests and orders such as documents, citations, in all
formats and mediums
LSS Distributes Process Knowledge: rigorous tracking of
project data and knowledge management; leverage
automated tools to drive effectiveness
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 is fundamentally customer focused: the
methodology addresses review and improvement of
transactional process including customer facing processes
Lean Six Sigma
UNCLASSIFIED
Projects have been identified and are underwayProjects have been identified and are underway
Project Description Belt Candidate
DTICKER NAVIGATION 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
Geoff Rassmussen
DTICKER CONTENT Information on the Human Resources (HR) site is not current. The processes for posting
current information or removing outdated information are not clearly defined. LaDona Kirkland
PERSONNEL
RECRUITMENT PROCESS
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.
LaToya Thomas
FINANCIAL MANAGEMENT
TRACKING
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
Pam Shepherd
QUALITY IMPROVEMENT Standardize various processes to increase efficiency and accuracy to track and report
performance measures so that data is clean and reporting is consistentShelley Ford
PRODUCTION CODE Baseline production code bugs reported post-production to increase quality of DTIC
productsJudy Berger
TASK MANAGEMENT Improve general task request, tracking and management by prioritization, issue
escalation, and dependencies (procurement, customer responses, digital certificates.)Chau Vuong
TRAINING INFORMATION
MANAGEMENT
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
Jack Jones
Lean Six Sigma
UNCLASSIFIED
• DTIC Champion training
Project selection
Belt selection
Belt training
Project completion
• DoD LSS Program Office Improve effectiveness of Warfighter support
Continue training at all levels and complete strategically aligned projects
Horizontal integration and standardization efforts underway
Committed Leadership
Strategic Alignment
Data-driven Decisions
Emerging CPI Culture
Key next stepsKey next steps
Lean Six Sigma
UNCLASSIFIED
Questions?Questions?
Lean Six Sigma
UNCLASSIFIED
BackupBackup
Lean Six Sigma
UNCLASSIFIED
The deployment will increase DoD’s maturity in well The deployment will increase DoD’s maturity in well defined stagesdefined 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
Lean Six Sigma
UNCLASSIFIED
LSS projects must deliver tangible benefit to our end LSS projects must deliver tangible benefit to our end customer…the Warfightercustomer…the Warfighter
Plan/Budget Procurement IT HR Legal Design/Dev Storage/Trans. Maintenance Disposal
Human Resources Management
Weapon System Lifecycle Management
Materiel Supply & Service Management
Real Property & 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
Bu
sin
ess
Mis
sion
s
War
fight
er
Following a rigorous project selection process ensures that projects initiated at the functional level address the cross-functional Core Business Missions
Following a rigorous project selection process ensures that projects initiated at the functional level address the cross-functional Core Business Missions
Lean Six Sigma
UNCLASSIFIED
Across DoD LSS is at varying levels of deploymentAcross 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
Projects1
Active: 541 Complete: 532
Belts1
Black: 160 Green: 2,335
Burning
Platform
LSS Experience 3 yrs
LSS Experience 5 yrs
LSS Experience 2.5 yrs
LSS Experience .5 yrs
DoD level LSS goals Support leadership’s business
transformation objectives Drive consistency throughout the enterprise
1includes OSD Staff, DoD Agencies and Field Activities; All data based on March2008 DoD LSS Data Call
OSD, DoD Agencies and Field Activities
Lean Six Sigma
UNCLASSIFIED
The two methods offer complementary perspectives in The two methods offer complementary perspectives in satisfying customer expectations (cont)satisfying customer expectations (cont)
• Six Sigma is a methodology that focuses on improving quality through reducing
variation
…to changethese.
Outputs
Must changethese…
InputsTransformationProcess
Lean Six Sigma
UNCLASSIFIED
LSS Practitioner slideLSS Practitioner slide
Role Responsibility
Green Belt
• Deliver successful small, focused departmental projects
• Assists with implementation of KPI’s
• Assist Black Belts with bigger projects
• Assists with Process Control Audit functions
Black Belt
• Hands-on project leadership and execution of DMAIC strategy
• Drive process and cultural change
• Assists in development and implementation of key process measures
• Train and mentor the local organization on Six Sigma methodologies
Master Black Belt
• Supports leadership via project selection and program management
• Mentors, trains, and supports project teams
• Leads high impact cross-functional level projects
Champion
• Select improvement projects consistent with mission goals and objectives
• Drive success via program support and elimination of barriers
Deployment Team
• Leads efforts to create CPI Strategic Plan
• Makes decisions on Program Management Issues
• Establishes Program Policy for training and certification
Lean Six Sigma
UNCLASSIFIED
Problem Statement:
Primary Metric:
Defect Rate:
DPMO:
Sigma Level:
Data Source:
Time Period:
Most significant root causes:
• Insufficient training
• Outdated or incorrect nominee information
• Ignorance of the law
Four process improvement areas were identified to address the main root causes of errors
Developed a control plan to implement improvements and ensure sustainability
ANALYZE
IMPROVE CONTROL RESULTS
Improve General and Flag Officer Nomination Letter ProcessProject Sponsor: LtCol StovallProcess Owner: COL MunsterGreenbelt: MAJ Holliday
DEFINE MEASURE
A large number of 3/4 star nominations that were sent to the SecDef from Apr to Nov ’07 contained errors and had to be rewritten.
• Improve our support to the customer by decreasing or eliminating errors
• Improve the timeliness of nominations• Save time for CJCS• Eliminate rework
Error free nomination letters; initial goal less than 5% error rate
• typographical errors• material/research errors in information
pertaining to nominee• incorrect references/interpretation of
law
Expected Benefits:
Customer Spec:
Defect:
% letters returned with errors
33.33%
333,333
1.93
OSD and JS Records
Apr-Nov 2007
Process mapping revealed hidden rework loops:
• Errors in service letters flow through to JS letters
• Lack of templates and SOPs leads to “reinventing the wheel” on each nomination
• Incorrect JMIS (joint tour) information
• Ignorance of constantly changing law
Count 6 4 2 2 2Percent 37.5 25.0 12.5 12.5 12.5Cum % 37.5 62.5 75.0 87.5 100.0
Return ReasonsTy
poOt
her
Joint
Tou
r Info Wro
ng
Waiv
er W
rong
Missing
Info
18
16
14
12
10
8
6
4
2
0
100
80
60
40
20
0
Count
Perc
ent
Pareto Chart of Return Reasons
Over 75% of errors are for 3 reasons
Count 6 4 2 2 2Percent 37.5 25.0 12.5 12.5 12.5Cum % 37.5 62.5 75.0 87.5 100.0
Return ReasonsTy
poOt
her
Joint
Tou
r Info Wro
ng
Waiv
er W
rong
Missing
Info
18
16
14
12
10
8
6
4
2
0
100
80
60
40
20
0
Count
Perc
ent
Pareto Chart of Return Reasons
Over 75% of errors are for 3 reasons
Creation Process for CJCS General Officer Nomination Letter
Join
t Sta
ffJo
int S
taff
OS
DO
SD
Ser
vice
Ser
vice
StartService Nomto Joint Staff
Fax to OSD
Service LetterCorrect?
Notify JointStaff of
Findings
Joint StaffResearch
No 2%(Was 5%)
Wait for further info
Yes98%
Service LetterCorrect?
Return to Service
No 5% (Was 10%)
Write Chairman'sLetter
Yes95%
Joint Staff Legal
Review
Chairman’s Letter
Correct?
Send to OSD
Yes98%
Chairman’s Letter
Correct?
Joint StaffProcess EndsOSD Begins
Yes95%
Return Letter to Joint Staff
No 5%(Was 33%)
Return Letter to Writer
No 2%(Was 5%)
KEY
Non-Value AddedSteps/ Rework
1 3
1 3
2 14
2 4
COL KernCJCSi updateCreate quarterly law reviews with JS SJAIgnorance of law
LT Leflore/teamCJCSi updateScrub all JMIS reports with services and turn arrivals/departures over to services
JMIS Reports/.Joint Tour Info
MAJHolliday
Yearly JSAPUpdating CJCSi-deadline is June 2008Creating SOP and template to standardize procedures on properly preparing letters for CJCS signature
Resources for Research (Old CJCSi, Title 10, DoDis)
OSDDoDiRequest updates through OSD and provide info to assist with update
Out of date 601 Titles
OwnerControl Improvement PlanRoot Cause
COL KernCJCSi updateCreate quarterly law reviews with JS SJAIgnorance of law
LT Leflore/teamCJCSi updateScrub all JMIS reports with services and turn arrivals/departures over to services
JMIS Reports/.Joint Tour Info
MAJHolliday
Yearly JSAPUpdating CJCSi-deadline is June 2008Creating SOP and template to standardize procedures on properly preparing letters for CJCS signature
Resources for Research (Old CJCSi, Title 10, DoDis)
OSDDoDiRequest updates through OSD and provide info to assist with update
Out of date 601 Titles
OwnerControl Improvement PlanRoot Cause
Create quarterly law reviews with JS SJA
Scrub all JMIS reports with services and turn arrivals/departures over to services
Updating CJCSi-deadline is June 2008Creating SOP and template to standardize procedures on properly preparing letters for CJCS signature
Request updates through OSD and provide info to assist with update
Improvement Plan
Create quarterly law reviews with JS SJA
Scrub all JMIS reports with services and turn arrivals/departures over to services
Updating CJCSi-deadline is June 2008Creating SOP and template to standardize procedures on properly preparing letters for CJCS signature
Request updates through OSD and provide info to assist with update
Improvement Plan
1
4
2
3
Process monitored using control chart (p-chart) to ensure improvements are sustained
Feb 08
Jan 08
Dec 0
7
Nov 0
7
Oct 07
Sep 07
Aug 07
Jul 0
7
Jun 07
May 07
April 07
1.0
0.8
0.6
0.4
0.2
0.0
Month
Pro
port
ion
UCL=0.257
LCL=0
Pre Post
_P=0.063
Tests performed with unequal sample sizes
P Chart of Returned Letters Pre and Post Improvements
P=0.333_
Legacy Process ImprovedProcess
33% 6.3%1.9 3.0
TimelineStatusActualPlannedPhase
2/26/0801/01/08Control
02/06/0812/07/07Improve
11/30/0711/15/07Analyze
10/29/0711/02/07Measure
10/10/0710/12/07Define
TimelineStatusActualPlannedPhase
2/26/0801/01/08Control
02/06/0812/07/07Improve
11/30/0711/15/07Analyze
10/29/0711/02/07Measure
10/10/0710/12/07Define
Results based on initial implementation
Goal of 5% or less should be achievable once full implementation is complete
