Lean 6 Solutions

Better Quality, Faster

Integrated Process Improvement

20 years of process improvement experience Certified Master Black Belt. Bachelor in Industrial Engineering, Masters in Project

Management Experience in Manufacturing and Service Industries. President of Lean 6 Solutions, Inc. – Lean Six Sigma

Consulting - www. Lean6solutions.com

Presenter Bio

Lucas Jerdenlucas.jerden@lean6solutions.com

Understand why continuous improvement is important. Describe Six Sigma, Lean, and Innovation. Using an integrated approach to improving your business. Using Lateral thinking to spur the innovation process. Developing a strategic implementation plan.

Objectives

Increasing competition worldwide. There is need to improve processes and develop new

ideas in many industries:- Education- Health care- Environmental protection- Government administration- Manufacturing

Do we need Continuous Improvement?

70-20-10 Rule“Spend 70 percent of your time on the core business, 20 percent on related projects, and 10 percent on unrelated new businesses” – Eric Schmidt: Google CEO

Integrated Process Improvement

Your integrated process improvement efforts need to include three sets of activities.

Related ProjectsUnrelated New Business

Improve Daily Work

Use of Lean concepts and tools. Includes the processes that people do every day in their job. Develop a culture where employees carry out small incremental improvements. Employees are expected to regularly identify improvements

in their workplace. Employees should be focused on key processes.

Improve Daily Work

Does not require formalized processes and data analysis. Problems can be readily detected by careful observation. Many solutions are “just do it” types.

Solution to the problem is apparent and just needs to be implemented.

Examples:- Make sure all job aids are available to workers- Share best practices- Organized workspace, databases, reference materials, etc

WasteNecessary

Value Added

Lean places work into one of three categories.

The customer only cares about the value added work.

The majority of all work is usually in the waste category.

Lean focuses on eliminating work that is in the “Waste” category.

Lean and Waste

Enables you to distinguish between normal and abnormal conditions.

Creates the foundation for continuous improvement. Allows visual communication. Involves the organization’s employees.

5S Concepts

Creating and maintaining an organized, safe, and visual workplace which:

Sort – Straighten – Shine – Standardize - Sustain

Standardized Work

Agreed upon work procedures that establish the best methods. Each step in the process is performed repeatedly in the same manner. Changes are only made when data indicates that a new method is better.

.

Structured Process Improvement

Use Six Sigma to address issues that are more complex. Focus on improving processes. Train individuals to use data based analysis for improvement.

Solution to the problem is not known

Use of structured techniques and data analysis is required. Examples: - Improve on-time delivery of a product- Reduce errors in a process.

DefineControl

Measure

Analyze

Improve

DMAIC

Improvement methodology that is focused on reducing variation.

Make decisions based on data and analysis.

Based on the DMAIC model and is used in every Six Sigma project.

Six Sigma and DMAIC

Example – Data Analysis

Day 1 Day 3Day 2

The run chart indicates that the majority of the abandoned calls are between 9 am – 11 am.

The next step is to analyze the reasons for abandoned call from 9-11.

Correlation Example

There is a moderate positive correlation between finish time and cyclist weight .

Fin

ish

Tim

e

Cyclist Weight

Innovation Projects

Use Design for Six Sigma and lateral thinking to develop new products and processes.

Understand the market, customer needs, and company core skills to make changes. Developing solutions that are different or new. Examples: - Launch a new product line- Market to a new customer segment- Redesign the sales process

Design For Six Sigma

Used when a new process, product, or service is needed or when existing ones require significant change.

Requires substantial work in understanding the voice of the customer - why can’t the process, product, or service meet customer requirements.

Is useful for collecting needs data, analyzing the data, and developing requirements.

Does not have good tools for developing new ideas.

Lateral Thinking

Term coined by Edward de Bono in Lateral Thinking. Systematic techniques used for changing concepts and

perceptions and generating new ones. Exploring multiple possibilities and approaches instead a

single approach. Sometimes defies logical thinking or the “data driven”

approach.

“You can not dig a hole in a different place by digging the same hole deeper.

1 2 3

Let’s make a deal Winner gets to pick a door•2 doors have gag prizes•1 door has a nice prizeAfter the door is selected, the MC will reveal one gag prize. You then have the option to switch doors or keep original choice.

Thinking Outside the Box

New ways to use as is? Other uses if modified?

What else is like this? What other ideas does this suggest? What could I copy?

New twist? Change colors, motion, odor, taste, form, and shape? Other changes?

What to add? More time? Greater frequency? Stronger? Higher? Larger? Thicker? Heavier? Extra value? Duplicate? Multiply?

What to subtract? Smaller? Miniature? Lower? Shorter? Lighter? Understate? Less frequent?

Who else instead? What else instead? Other material? Other process? Other approach? Other time?

Interchange components? Other pattern? Other layout? Other sequence?

Change place? Change schedule? Earlier? Later?

Innovator’s Checklist

Improve Daily Work - Hotel Example

Problem Improve Daily Work

Room cleaning too slow Share best practices

Customer complaints about drinks.

Change brand of drink

Miscommunication between shifts

10 minute communication meetings

Structured Projects - Hotel Example

Problem Structured projects

Room changeover from guest to guest is slow

Increase capacity of staff during peak checkout times

Check-in time is too slow Reduce time that is not value added in the process.

Breakfast invoice charged to wrong room

Change process so attendant asks for customer ID.

Innovation Projects - Hotel Example

Problem Innovation projects

Room changeover from guest to guest is slow

Reduced prices to guests for late check in.

Check-in time is too slow Self check in kiosks (like airports)

Breakfast invoice charged to wrong room

Finger print scanners for checkout.

Improvement Method

Regardless of the improvement method the following steps are required:

1) Selection of a process for improvement.

2) Identification of process problems that need attention.

3) Implementation and monitoring of improvement activities.

Select core processes that need improvement. Conduct monthly or bi-monthly brainstorming meetings

with personnel involved in the process. Meetings should be ½ day to 1 day in length. Collect all ideas regardless of the complexity or scope. Categorize ideas as:

- Improve Daily Work

- Structured Projects

- Innovation Projects

Brainstorming Meetings

50% of employees are involved in program

Train key individuals on Six Sigma tools and concepts.

Train key individuals on Innovation .

Realize financial targets>.25% of revenue.

Full-time improvement position added.

75% of employees are involved in program.

Fulltime positions are recognized as a desired development assignment.

Improvement projects started with business partners.

Realize financial targets = 1.00% of revenue

100% of employees are involved in program.

Strategic alignment business partner innovation efforts

Realize financial targets> 1.00% of revenue

Year 4Soar with EaglesYear 1

Start the engine

Year 3Gain AltitudeYear 2

Take Off

25% of employees are involved in program.

Start documenting core processes

Train individuals on Lean Tools and Concepts

Realize financial targets> 0.10% of revenue

Improvement Shaping Plan

QUESTIONS ??