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Part 1: Introduction

Lean and Six Sigma Fundamentals

Tracy Owens

3 Point Consulting Ltd

3-point@att.net

614-602-7511

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Agenda

Overview – Lean/Six Sigma

Project Management Tools

5S, Process Analysis, Kaizen, DMAIC

Discuss Pain Points

Charter/Scope

Tollgate Reviews

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1. 5S: organization and discipline in the individual workspace

2. Process Analysis: value analysis conducted by local teams

3. Kaizen: improvements are made quickly by teams at each location

4. Six Sigma: some improvements will require more than a kaizen event

5. Design for Six Sigma: every new initiative will be done right the first time

The CI Journey

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The most basic process to keep one's own work area clean and manageable

Foundational because it starts with keeping one's own workspace clean, organized, easy to use, and safe

“If one moving part is not oiled, it will slow down the whole machine.”

5S: The First Step

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Seiri - The tools or materials that you need most often should be closest to you

Seiton - Once you've decided what needs to be stored in what location, make sure it is always available when you need it

Seiso - Waste is caused when you have to stop what you are doing to check if your tools are capable of doing the job

Seiketsu - The first three steps must be employed regularly, without fail

Shitsuke - Pass your success along, share your stories with others, and reward progress in the 5S program

5S Elements

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1 2 3 4 5 6 7

9 10 11 12 13 14

15 16 17 18 19 20 21

22 24 25 26 27 28

29 30

Which numbers are missing between 1-30?

Before 5S With 5S

26 2 15 22 29 28 14

17 11 9 7 13 19 27

30 20 6 24 3 1 12

5 25 10 21 18 4 16

5S: A Simple Test

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•Named for the heavy paper affixed to the wall for use in the exercise

•The process being studied is drawn on the paper or illustrated using sticky notes

Process Analysis: Brown Paper Study

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Flowchart Symbols:

Process Step Decision

In series:

Produce the process map with your team,

Then validate it with more actual operators of the process

Remove Cap

Does Cap Fit in Box?

Remove Cap

Does Cap Fit in Box?

Switch to Larger

Box

Store Cap in

Box

YES

NO

Process Mapping

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Deployment Flowchart

Includes the Departments or Personnel Involved in the Process

Useful for Showing Handoffs and Repeated or Redundant Work

Remove Cap

Approve Box for

Use

Store Cap in Box

YES

NO

Operator

Quality

ToolRoom

Technician

Examine New Box

Provide New Large Size Box

Store Cap in Large Size Box

Does Cap Fit in Box?

YES

NO

Reject and Choose

New Box

Box is in

Spec?

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What Your Process Map Represents

How you

would like it to

be…

How you think it is... How it really is…

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VALUE ADDED

CUSTOMER wants it and

WILLING TO PAY for it

- Process causing

product, service or

information change its

shape or form

- Activities that actually

deliver the product or

service

- Done right the first time

VALUE ENABLING

Activities that support

CUSTOMER deliverables

but provide no advantages

nor differentiation

- Activities that take time

or resources to overcome

inefficient processes

- Do not add to the

customer requirements

- e.g. Test, Inspection,

Audit

NON-VALUE ADDED

Activities that take time or

resources, but do not add

to the customer

requirements

e.g. wait (worst driver),

errors, defects, scrap,

rework, overproduction,

unused floorspace or data

storage

Focus to ELIMINATE

Continuous Improvement

Strategy by

LEAN THINKING

Focus to IMPROVEFocus to REDUCE

Continuous Improvement

Strategy by

BLITZ or Elimination

95% 5%

Continuous Improvement

Strategy by SIX SIGMA

and Innovation

Three Categories for Process Steps

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Overproduction

Waiting TransportationExcess

ProcessingDefects

Inventory Unnecessary Motion

The ‘7 Wastes’

ANY time spent

waiting is waste.

Do you agree?

Approvals; System

response

Movement of the

product or of the

material.

Cover sheet

Doing more than the

customer needs.

Setting up Users

Anything not done

correctly the first time

is causing waste.

Gaps in order input

from sales staff

Producing more than

needed. Refers to finished

goods.

Overbuying products;

Duplicate accounts

Refers to work in

process – not

completing work quickly,

so it piles up.

Month-end orders?

While Transportation is

movement of materials,

Motion is the operator.

Searching multiple

databases

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The Brown Paper Study

First time through: Map the process in detail

–Use flowchart symbols and swim lanes to depict the various departments and people involved

Second time through: Record the time needed to complete each process step, and the time between steps

Third time through: Evaluate each process step as Value Added or Non-Value Added

Fourth time through: Identify “Quick Win” opportunities

Take action on the items that can be addressed now

Value Added • Customer is

willing to pay for it

• Changes the product or delivers the service

• Done right the first time

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Brown Paper Example

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Kaizen Events

Typical flow of a 2-day Kaizen Event:

Benefits are fast turnaround, a tested solution that is aligned with organizational goals, and an empowered team

Examples:•Defect reduction in purchase order preparation

•Decrease time needed to execute a contract

•Optimize DPO metric through process consistency

Morning 1;

Process

Analysis

Pre-Event

Gather

Process

Data

Afternoon 2;

Refine and

Document

Morning 2;

ID and Test

Solutions

Afternoon

1;

Value

Analysis

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Six Sigma is about Reducing Variation

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Less Variation – More Predictable

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Six Sigma DMAIC

When to use 6s DMAIC:

A process is in placeThe process is being followed every timeIt is not producing the desired resultsWe are not sure why…

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Project Deliverables

Six Sigma Project

•Clearly Defined

Scope

•Process Maps

Initial Project Plan

with Milestones

•Sufficient

Data

•Consistent

Measurement

Gather Baseline

Data

Translate CTQs

into Process

Metrics

•List of Possible

Causes

•Verified Root

Causes

Process Analysis

Graph Analysis

Data Analysis

Fishbone

ID Root Cause(s)

•Pilot Test

•Cost-Benefit

Analysis

Generate Ideas

Select the Best

Solution

•Control /

Response Plan

Implementation

Plan

Document and

Institutionalize

the Process

Define the

Project

Measure

Performance

Analyze the

Causes

Improve the

Process

Control

Performance

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Not Necessarily Centered

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Good Six Sigma Projects

Clearly linked to business goals

Major importance to the organization

The project has management support & approval

The project definition includes clear, quantitative measures of success (at least by the end of DEFINE)

Reasonable scope

Doable in 3-6 months

Sources of High Impact Projects

Sources of waste

Processes with backlogs

High volume processes & products

Major customer problems, especially those with big financial impacts

High cost items in the budget

Processes with built-in re-work

Batches

Characteristics to Avoid or Refine

• “Boil the ocean”

• Fuzzy objectives

• Poor metrics

• Not tied to financials

• Not connected to strategic plan

• Solution already identified

• Too many objectives

Barriers to Team Success• Not supported by management

– No champion

– Champion doesn’t engage Black Belt

– Few or poor management reviews of

project

• Goals not important to organization

• Scope too large or Team too large

• No time given to the project

• No clear measure of success

Six Sigma Projects

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Many improvements can be made using Lean every day

Lean techniques are

useful when making

improvements in a

Six Sigma project

Some problems will be more

difficult to solve, so you will

start a Six Sigma DMAIC

ProjectDefine

Measure

AnalyzeImprove

Control

Lean

Lean

Then you start again

with Lean and look

for more

opportunities to

eliminate waste

Lean and 6s Work Together

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• Committed LEADERSHIP is essential to success

• Maintaining a strong CUSTOMER FOCUS (value delivery)

assures we’re fixing the right things

• Effective PROCESS MANAGEMENT accelerates

improvement and helps us hold gains

• Must drive improvement goals through the enterprise using

effective STRATEGY development and deployment

• Careful attention to ORGANIZATIONAL DEVELOPMENT

builds important foundations for continued success

• Carefully chosen METRICS help us monitor our rate of

improvement and make course corrections when needed

• Rigorous and thoughtful USE OF TOOLS is the engine that

propels improvement

These lessons highlight the Key Enablers of a Continuous Improvement Program

Lessons Learned

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Part 2: Everyday Improvements

Taking Action When Action Is Needed

Tracy Owens

3 Point Consulting Ltd

3-point@att.net

614-602-7511

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TYPES OF PROBLEMS

What types of PROBLEMS do we encounter?

SPEED

ACCURACY

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DESIRED OUTCOMES

What do we want to do with PROBLEMS?

Prevent them from happening

Resolve them more quickly

Resolve them the first time

Resolve them completely

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UNCOVERING PROBLEMS

How do we know which PROBLEMS are most important?

Voice of the Customer

Voice of the Process

Voice of the Business

Voice of the Employees

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THE PARETO CHART

A list of PROBLEMS in order of their frequency

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ASSIGNMENT #1

What PROBLEMS are handled by your team most often?

Track the reasons that people call you and your department

Prepare a Pareto chart for those reasons

Determine which types of calls can be

- handled more quickly

- prevented in the first place

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WHICH PROBLEMS to TARGET

Large problems often require larger projects

Look for YOUR

improvements HERE

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LEAN ENTERPRISE

Fundamentals of LEAN:

Determine what VALUE you deliver to customers

Eliminate or minimize obstacles to delivering that VALUE

Look every day for more ways to improve the delivery of VALUE

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SEVEN WASTES

The opposite of VALUE is WASTE

WAITING MOTION OF OPERATORS

DEFECTS and REWORK MOVEMENT OF STUFF

TOO MUCH INVENTORY UNDERUTILIZATION

TOO MANY FINISHED GOODS DOING MORE WORK THAN

THE CUSTOMER WANTS

WAITING MOTION OF OPERATORS

DEFECTS and REWORK MOVEMENT OF STUFF

TOO MUCH INVENTORY UNDERUTILIZATION

TOO MANY FINISHED GOODS DOING MORE WORK THAN

THE CUSTOMER WANTS

Let’s focus on the top four today:

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HOW TO DEAL WITH WASTE

Investigation:

Waiting

Defects and Rework

Motion of Operators

Movement of Stuff - “Transportation”

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ASSIGNMENT #2

Where is WASTE in your department?

Track the waste and the sources of waste

Prepare a table counting the time wasted

Determine best intervention

- Waiting: move critical items to the front

- Defects: find the root cause(s)

- Motion: locate important files close to you

- Transportation: don’t make extra copies or duplicate reports

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• Study the process enough

Not too little, you might make decisions based

on insufficient data

Not too much, you might wait too long to make

the right decision

• Gather input from the operators

Those who execute the process daily have the

clearest understanding of the work and they

have thought about ways to improve it

• Celebrate success!

CLOSING THOUGHTS