OAKLAND
CONSULTING
DRIVERA European Lean Six Sigma Process
Improvement Methodology
Paul White Oakland Consulting
2
22 OAKLAND
CONSULTING
Agenda
• Oakland Consulting
• Process Improvement Methodologies
• Lean Principles
• Six Sigma Overview
• DRIVER:
> Process Focus
> Deployment Strategy
• European Aeronautical Defence Sector (EADS)
• EADS DRIVER Case Study
• Questions & Answers
3
33 OAKLAND
CONSULTING
Some of our Private Sector Clients
4
44 OAKLAND
CONSULTING
Some of our Public Sector Clients
5
55 OAKLAND
CONSULTING
Workshop Discussion
• What methods can we use to protect the customer?
6
66 OAKLAND
CONSULTING
100% Inspection – Does it work?
Workshop Discussion
7
77 OAKLAND
CONSULTING
Will 100% inspection protect the customer?
Scenario
Oakland’s Marketing Department are very proud of the publications they produce.
The customers of Oakland expect the highest quality publications.
Therefore, the manager of the publications department has decided to employ you as an inspector at the end of the printing process to ensure that the text produced is accurate.
You have 30 seconds to inspect the following set of text and count how many times the letter ‘F’ appears, (upper & lower case) including the title.
8
88 OAKLAND
CONSULTING
Finished files are the results of many years of sceintific studies combined with the experience of many years of
effort
F-Test
9
99 OAKLAND
CONSULTING
How many did you see?
Have another look!
F-Test
10
1010 OAKLAND
CONSULTING
Finished files are the results of many years of sceintific studies combined with the experience of many years of
effort
F-Test
11
1111 OAKLAND
CONSULTING
Did anyone change their mind?
F-Test
12
1212 OAKLAND
CONSULTING
Finished files are the results of many years of sceintific studies combined with the experience of many years of
effort
F-Test
13
1313 OAKLAND
CONSULTING
Did you spot anything else?
F-Test
14
1414 OAKLAND
CONSULTING
Finished files are the results of many years of sceintific studies combined with the experience of many years of
effort
F-Test
F-Test
15
1515 OAKLAND
CONSULTING
100% Inspection – Does it work?
Workshop Discussion
16
1616 OAKLAND
CONSULTING
Process ImprovementMethodology Objective
Waste Elimination / Defect Reduction
Efficiency / Yield Improvement
Improved Customer Satisfaction
Higher Shareholder Value
OAKLAND
CONSULTING
Process Improvement Methodologies
18
1818 OAKLAND
CONSULTING
Plan, Do, Check, Act
Check
What happened?
• Measurement• Assessment• Analysis
Do
What action?
• Prepare for implementation• Training• Communication• Implement improvement• Change management• Project management
Plan
What focus?
• Project goals/measures• Set up team• Map process• Measure process• Identify key problems• Find root causes• Identify solution• Plan for implementation
Act
What now?
• Review• Project revision• Standardisation• Share learnings• Further improvement
19
1919 OAKLAND
CONSULTING
1. Identify the team • Build cross-functional team
2. Define the problem
• Where, when, etc.• Is/Is not analysis• Process map• Measure and set objective
3. Contain the symptom• Short-term solution• Rescue affected customers
4. Identify root causes • Use FMEA, Five Whys• Identify and check root cause
5. Choose corrective action• Focus on fixing root causes• Set targets and owners for implementation
6. Implement corrective action • Implement to plan• Collect data to prove success
7. Make change permanent• Documentation• Revise targets, FMEAs, etc.
8. Recognise the team• Recognise individuals and the team• Celebrate success
Global 8D
0. Emergency Response Action • Protect the customer
20
2020 OAKLAND
CONSULTING
DMAIC
Define
Measure
Analyse
Improve
Control
• Identify champion and owner• Initial assessment of situation• Define scope and goals of project
• Map process• Validate measurement system• Calculate process capability
• Analyse for sources of variation• Identify potential root causes• Verify actual root cause
• Develop solution• Create new process map• Cost / benefit analysis
• Standardise• Sustain the gain• Develop control strategy
21
2121 OAKLAND
CONSULTING
DRIVERA European Lean Six Sigma Improvement Methodology
D DefineDefine the scope and goals of the improvement project in terms of customer and/or business requirements and the process that delivers these requirements.
R Review Map the ‘as-is’ process and measure the current process performance to understand the ‘value-add’
I Investigar Analyse the gap between the current and desired performance, prioritise problems and identify root causes of problems.
V VerbessernGenerate the improvement solutions to fix the problems and prevent them from reoccurring so that the required financial and other performance goals are met
E ExecuteThis phase involves implementing the improved process in a way that “holds the gains”. Standards of operation will be documented in systems such as EN 9100 and standards of performance will be established using techniques such as Statistical Process Control
R Renforcer Capitalise the improvement by ‘learning the lessons’ and establishing process re-assessment for continuous improvement
22
2222 OAKLAND
CONSULTING
Methodology Comparison
1. Identify team
2. Define problem
3. Contain symptom
4. Identify root causes
5. Choose corrective action
6. Implement corrective action
7. Make change permanent
8. Recognise the team
Define
Measure
Analyse
Improve
Control
Do
Act
Check
Plan
PDCA DMAIC8D
Define
Review
Investigar
Verbessern
Execute
DRIVER
Renforcer
23
2323 OAKLAND
CONSULTING
DRIVERA holistic approach
DRIVER training also includes ‘project management’ & ‘change management’
VariationWaste
TIME
COST€€€
QUALITY
Process Improvement
Lean Six Sigma
OAKLAND
CONSULTING
Lean Principles
Cost€€€
QualityTime
25
2525 OAKLAND
CONSULTING
Lean Principles
• Lean principles are based on the Toyota Production System (TPS)
• TPS was developed after benchmarking the Ford Motor Company
River Rouge plant in Detroit in the 1950’s.
• The key characteristics of TPS / Lean are:
> Only producing what is required, when it is required
> Close links throughout the supply chain – just in time
> Producing right first time
> A lean mindset & company culture
> The elimination of non-value added activity (waste)
26
2626 OAKLAND
CONSULTING
World Class Companies: ‘NVA’ = 80% TTT
Remove Waste, don’t Improve the Value-Add
Total Throughput TimeTotal Throughput Time = Value-add time
Non-Value Add + Non-Value Add + Other timeOther time+
LeanEliminate Waste to Improve the Value Stream
Usual FocusWork longer-harder-faster,add people, complexity or
equipment
26
Typical ‘NVA’ = 99% TTT
27
2727 OAKLAND
CONSULTING
Over-production
Motion
Inventory11
66
77
55 44
33
22
WASTE
Waiting
Defects (Scrap/Rework)
Over-processing
Transportation
The 7 wastes
28
2828 OAKLAND
CONSULTING
LEAN Concepts
• Standardised Work
• Waste Elimination
• Parallel Processing
• Cell Layout
• Batch Reduction
• Quick Changeover
• Line Balancing
• Other Concepts
• Visual Management
• 5 S
• Error Proofing
A Lean Example
29
2929 OAKLAND
CONSULTING
Workshop Discussion
• Are Lean principles only applicable to manufacturing processes?
OAKLAND
CONSULTING
Six Sigma Overview
Cost€€€
QualityTime
31
3131 OAKLAND
CONSULTING
What is Six Sigma?
• Six Sigma is focused on improving the quality of our products and services
• How do we define the term ‘quality’?
• The generic definition of quality is ‘meeting or exceeding the customer requirements’
• The customer of a process can be internal or external
• Therefore, Six Sigma improves quality, thus, improving customer satisfaction
32
3232 OAKLAND
CONSULTING
Six SigmaSatisfying the Customer
DefectsDefects Acceptable
LSL USL
Customer Requirement
Process Performance
Sigma is a capability metric that compares process performance against customer requirements
33
3333 OAKLAND
CONSULTING
Is 99% Quality Good Enough?
6 Sigma99.99966% Good
6 Sigma99.99966% Good
1 short or long landing every 5 years
3.8 Sigma99% Good3.8 Sigma99% Good
2 short or long landings at an airport per day (200 daily flights)
Unsafe drinking water for almost 15 minutes each day
Unsafe drinking water one minute every seven months
5,000 incorrect surgical operations per week (500,000 operations per week)
1.7 incorrect operations per week
10,700 defects per million opportunities 3.4 defects per million opportunities
34
3434 OAKLAND
CONSULTING
Quantifying Process Capability
VARIABLE DATA
Cp
Pp Ppk
Cpk
ATTRIBUTE DATA DPMODPUPPM
}
Sigma is a universal measure of process performance
35
3535 OAKLAND
CONSULTING
Variable process capability is the ability of a process output to ‘fit’ between the specification limits which are defined by the customer requirements.
Variable Process Capability Analysis
43 5 6 743 5 6 7
Can this distribution from a process output fit between the specification limits of 5 1?
36
3636 OAKLAND
CONSULTING
LSL USL
Tolerance Process spread
LSL USL
Mean
Capability is an assessment of: process spread as a ratio of the process tolerance. – Cp / Pp
Cpk / Ppk is the location of the process mean with respect to both process specification limits.
Variable Process Capability Analysis
37
3737 OAKLAND
CONSULTING
Cp =
Cp =
Cp =
Cp =
Cp =
LSL USL
1
3
2
0.5
1
Workshop ExerciseCp
38
3838 OAKLAND
CONSULTING
Cpkl = 1
LSL USL X
Cpkl = 5
X
Cpkl = 1X
Cpkl = 0.5 X
Cpkl = 3
X
Cpku = 1
Cpku= 1
Cpku = 3
Cpku= 0.5
Cpku = -1
Workshop ExerciseCpk
39
3939 OAKLAND
CONSULTING
Cp / Cpk Simulation
http://www.lkl.ac.uk/research/technomaths/tools/spctools/
Cp Cpk
The London Institute of Education utilised digital technology to create a Cp / Cpk training tool to enhance learning in the workplace.
OAKLAND
CONSULTING
DRIVER – Process Improvement
41
4141 OAKLAND
CONSULTING
DRIVERThe Process Focus
Optimised Process
3-5 x’s
40–60 x’s: Inputs
Define: Grasp the problem & identify objectives
Review: Map ‘as-is’ process & current performance
Investigar: Analysis & root cause identification
Verbessern: Solution generation & prioritisation
Execute: Implement solutions to ‘sustain the gain’
Renforcer: Share best practice & lessons learnt
Y: Output
3-5 x’s
3-5 x’s
42
4242 OAKLAND
CONSULTING
Customers of Products and Services
Green Belts
Black Belts
Project Champions
Master Black Belts
DRIVER Deployment StructureInverting the hierarchal triangle
Executive Black Belts
DRIVER deployment is led by executives to ensure company wide support
DRIVER Project Checklist
© Oakland Consulting Plc. All rights reserved.
Define Review Investigate Verify Execute Reinforce Develop problem
statement Identify project
scope Determine
SMART objective Formulate project
team with R&Rs SIPOC map Define CTQs Stakeholder map Develop comm-
unication plan Develop outline
project plan Refine & sign-off
Project Charter Project sponsor
approval
‘Current state’ process map
Identify potential quick wins
Identify measurements to be taken
Develop data collection plan
Collect data Calculate
baseline process capability (KOMY)
Revisit problem statement
Project sponsor approval
Analyse Waste – Lean Toolkit
Analyse Variation – Six Sigma toolkit
Team brainstorm to identify root causes
Document root causes on Cause & Effect diagram
Select top 3-5 root causes
Validate root causes
Project sponsor approval
Team brainstorm solutions
Select optimum solutions
Conduct pilot study (or FMEA)
Verify improvements
‘Future state’ process map
Review stakeholder map and comms plan
Implementation business case (cost / benefit)
Implementation timing plan
Project sponsor approval
Implement actions on timing plan
Select control techniques (SPC)
Update or create SOP / SLA
Develop control metrics (KPI’s)
Disengage old process
Monitor progress Validate
improvements: process capability (compare against baseline Y)
Handover to process owner
Project sponsor approval
Monitor progress
Share lessons learnt (organisation memory, newsletters etc)
Thank the team Celebrate
success Plan future
activities Project sponsor
approval
End Date: End Date: End Date: End Date: End Date: End Date:
Key:
Completed– In progressX Not required
R&R Roles and responsibilitiesKOMY Key Ouput Metric YCTQ Critical to QualitySOP Standard Operating ProceduresSLA Service Level Agreement
Project Leader: .........................................................
Project Sponsor: .......................................................
Process Owner: ........................................................
Team Members: .......................................................
Start Date: ................................................................
Project Title:
OAKLAND
CONSULTING
European Aeronautical Defence Sector (EADS)
Military Transport
Eurocopter AstriumAirbus Defence & Security
45
4545 OAKLAND
CONSULTING
EADS Version of DRIVER
46
4646 OAKLAND
CONSULTING
MTAD - Improve super plastic forming process EF-2000 slats
Situation : Deviations in slat spar position cause scraps and repairs at assembly leading to non quality costs and manufacturing lead-time increase.
Performance :
• On-quality 27% spar position values. 8.5% scrap.
•132.000 € non quality costs
Situation : Deviations in slat spar position cause scraps and repairs at assembly leading to non quality costs and manufacturing lead-time increase.
Performance :
• On-quality 27% spar position values. 8.5% scrap.
•132.000 € non quality costs
• D – Stake-holder analysis, DoE training, Pareto analysis for scoping.
• R – Process map & key parameters, run charts, histograms.
• I – Run charts, Process capability analysis, Scatter plot.
• V – Variance & correlation analysis, Pareto, Rules determination.
• ER – SPC, KPI monitoring
What has been done Achievements
Context
EF-2000 Slat Superplastic forming process
METRICBASELINE RESULTS
% NON CONFORMING VALUES (REPAIRS)
73% 23%
%SCRAP 8.5% 1.3%
%CONCESIONS 89% 20%
%HNC´S 100% 60%
LEAD TIME 50 days 42 days
WORK IN PROCESS 333,774 € 280,946 €
NON QUALITY COST REDUCTION (*) 130.920 €
47
4747 OAKLAND
CONSULTING
User Help Desk Process Improvement
•D Processes identification, Prioritisation, Voice of Customer, Voice of Business
•R Process mapping, waste identification•I Statistical analysis (process capability,
Pareto), root cause•V Solution generation, waste reduction,
external benchmark, business case•E Responsibility charting, implementation•R Full deployment proposal
What has been done Achievements
Situation :Information Management integration at company level with numerous local processesPerformance :On time Incident Resolution performance fluctuated a great deal from process to process
Context
• Buy-in facilitated by the DRIVER method
• Performance increased by 40% (increase of calls closed by UHD)
• Cost base sustainable benefit exceeding 400 K€ per year for Germany and France
Performance
48
4848 OAKLAND
CONSULTING
Summary
• Oakland Consulting
• Process Improvement Methodologies
• Lean Principles
• Six Sigma Overview
• DRIVER:
Process Focus
Deployment Strategy
• European Aeronautical Defence Sector (EADS)
• EADS DRIVER Case Study
• Questions & Answers
OAKLAND
CONSULTING
Questions and Answers
Paul White Oakland Consulting