lean six sigma module 1 resources/dcm... · 2021. 6. 9. · dmadv / dfss xp 5 project ... module 16...

Lean Six SigmaModule 1

▰ Control

▰ Mic/Mute

▰ Screen

▰ Hands-Up

1987

1997

2007

2017

Introduction(s)

▰ Name

▰ Role / Organisation

▰ Previous experience with Lean 6-Sigma

▰ Expectations / Objectives / Motivation

The purpose of this award is to equip the learner with the knowledge, skill and competence to apply lean principles in a range of business environments and to use a range of lean strategies, tools & techniques

Training & Award Pathway

Classroom

• 4-day training workshop

Assignment 1.

• 60%• Project • DMAIC• 6 Weeks

Assignment 2.

• 40%• Academic• Lean Tools• 6 Weeks

Green Belt Certification

Project Methodologies

▰ PMI’s PMBOK ▰ Prince 2▰ Agile & Scrum▰ KanBan / Scrumban▰ Lean / DMAIC▰ DMADV / DFSS▰ XP

▰ 5 Project Stages▰ 10 Knowledge Areas▰ 49 Processes▰ 162 Tools & Techniques

▰ 7 Principles▰ 7 Themes▰ 7 Processes▰ Clear PM Role & Duties

▰ Iterative Delivery Cycle▰ Series of Sprints▰ Functions deployed in

operational chunks

▰ 5 Project Phases▰ Methodology▰ Continuous

Improvement ▰ Apply to existing

processes

Six Sigma

Deming

“If you can’t describe what your process is doing then you don’t know what you're doing”

Customers

“Its about what you do for your customers and not what you do toyour customers”

Reduce Waste

Reduce Variation

Agility AccuracyConcise ConsistentEfficient Effective PDCA DMAIC

+ =

Lean 6 Sigma is a methodology for

systematic improvement

Lean & Six Sigma

Lean Six Sigma - Ireland

Levels / Belts / Roles

▰ Establish strategic focus of the program ▰ Within the context of the organization ▰ Provide Culture and vision

Executives: Provide overall alignment

Translate the company's Vision / Mission Goals

▰ Create organisation wide deployment plan▰ Identify and provide resources▰ Clout and influence to remove barriers

Champions

Green Belts

Customer Focus

Externalentity that buys the product or service ( pays the invoice )

Internalsupport functions within your

own organisation

RegulatoryBodies you have toreport to / comply

with

Kano Model

VA

NNVA

NVA

Processes – Include Activities

Value Add5%

NNVA35%

NVA60%

Value Add NNVA NVA

Value versus Activity

Activity Definition Action

Value Add Any resources that changes the nature, shape or characteristic of the product or service being provided

Maximise

Non Value Add All unnecessary resources Eliminate

Necessary Non Value Add Resources which are invested by necessity under current conditions ( eg. Regulation ) but which do not directly improve product or service

Minimise

▰ TIMWOOD▰ TIMWOODS▰ TIMWOOD DOES IT▰ DOWNTIME▰ HOSPITAL

8 WASTES – Acronyms (8 MUDA)

The 8 WASTES - TIMWOODS

The 7 WASTES - DOWNTIME

PDCA – Cycle of Improvement

Lean & Six Sigma

Y = f (Xi) Lean & Six Sigma

To control Output Y

All critical inputs must be identified & Controlled

Only then will we have ”control” of the Variation in and performance of a process

Planned Variety

Unplanned Variety

Distributed Variation

20, 30, 50, 70, 80.

The Problem with Averages

1, 2, 3, 4, 5, 6, 7, 8, 9

Standard Deviation

1, 2, 3, 4, 5, 6, 7

-3, -2, -1, 0, +1, +2, +3

Standard Deviation

Standard Deviation

Find the best route to work every day

You record the travel timeover a 2 week period

Route A has an averageOf 20 minsRoute B has an averageOf 19 mins

Which Route do you pick ?

Averages

Find the best route to work every day

Lower SigmaLower Variation

Averages

Averages “HIDE” the variation

Averages

Six Sigma

Empirical Rule

Kurtosis

Process Shifts

Six Sigma

And that number is 99.9997%

Six Sigma Theory

Must align to strategy of the business

Must support a business case

Must have a clear sponsor / champion

Timelimited ( 1 to 6months )

Project Selection Process

T

E

C

D

R

Q

Potential Projects

• Project Selection

Lean & Six Sigma - DEFINE

Customer Impact

Process Maturity

Performance Status

Data availability currently

Project Criteria

5. Solution Clarity

6. Benefits ?

7. Impact on service quality

8. Project sponsorship

Project Criteria

9. Corporate strategy alignment

10. Timeframe to complete

11.Investment

12. Resource / Team availability

Project Criteria

13.Implementation Risk / Barriers ?

14. Level of control / authority

15. Process improvement or complete redesign ?

Project Criteria

CriteriaNo

Question Weight 1-5

Absolute No = 1

Possibly No = 2

Possibly = 3

Possibly Yes = 4

Absolute Yes = 5

1 Are Customers requesting this 5 ☑

2 Is the Process Mature 3 ☑

3 Can we finish within 12 months 5 ☑

4 Are the expected benefits significant ( > €500K ) 5 ☑

5 Is the solution already known 1 ☑

6 Are the resources available 2

7 Is there Executive support 4

8 Is it aligned to Corporate strategy 5

9 Do we have Data already 2 ☑

10 What Investment is needed 4

Totals

PROJECT SELECTION

PROJECT CHARTER

SIPOC STAKEHOLDER MANAGEMENT

RACI VOC, VOP, CTQ PROCESS FOCUS TEAM & CHANGE MANAGEMENT

DEFINE – Key Elements

Project Charter

LEAN & Six Sigma - DEFINE▰ Problem Statement

▰ A GOOD Problem Statement should

▰ State the current undesired situation▰ Quantify the problem

▰ A GOOD Problem Statement should NOT

▰ Assume the cause▰ Assume the solution

LEAN & Six Sigma - DEFINE▰ A BAD Problem Statement ( examples )

▰ “Everyone needs to be retrained on……”▰ More resources are needed to improve leadtime….▰ Machine always broken…..Process always takes too

long.

Jump to conclusions, ambiguous, opinion driven.

LEAN & Six Sigma - DEFINE▰ A GOOD Problem Statement ( example )

During the period 1st Jan 2018 until June 30th 2018, >15% of customer queries were not resolved first time leading to 250hours of overtime to handle the escalations costing €12,500

• Provides the facts

• Provides timescales and impact to the business

• Clear and concise – non objectionable

LEAN & Six Sigma - DEFINE▰ A GOOD Problem Statement - structure

(Item) is a problem because it affects (Case / impact)and we have established the (evidence).

▰ Item: is a condition, procedure, hardware, equipment or process

▰ Case / impact: is quality, cost, service and or frequency

▰ Evidence: is a symptom(s) or data collected

Workload Facing Team 55,000 Applications Plus 15% Rework Burden

Capacity of Team

25people x 5days x 10applications x 46 weeks

The new business processing dept in PINK Dublin is handling 10% more applications ( 63,250 ) than it is designed to handle ( 57,500 ) due to a high percentage ( 15% ) of bad applications placing a strain on employees and on broker community loyalty.

Problem Statement

36mins per application reduced to < 30mins = 6mins saving.

16.6% time reduction ( 36-30) / 36

16.6% of €875K = €145,833 savings in reduced staff salaries

Cost of 1 Team = €175,000 / YEAR.

Business Case

Stakeholder Identification

Stakeholder Analysis

Joe Bloggs

Inf 8

Pwr 8

Joe Bloggs

Inf 8

Pwr 8

JB

Stakeholder Analysis

Team Management / Change Leadership

Team Meetings

Voice of the Customer (VOC)

Voice of Business ( VOB )

Voice of Process ( VOP )

LEAN & Six Sigma - DEFINE

What is Process Management?

Process Focus

Process Focus / Map the Process Flow

Value Stream Mapping (VSM)

LEAN & Six Sigma - DEFINE

Considers total Lead time of a process as a combination of

Process time ( useful ) & Waiting Time ( waste )

LT = PT + WT

A:R = PT / LT

Activity Ratio

Considers the Leadtime of a process as being a combination of Value Add (VA) + Non-Value-Add (NVA) +

Necessary-Non-Value-Add (NNVA).

PCE examines the relationship between VA and LT.

LT = VA+NVA+NNVA

PCE = VA/LT

Process Cycle Efficiency(PCE)

Takt Time

Your Digital Channel Marketing company is supporting 10 Clients accounts. Each client expects expects 4 updates

per day on FB and Insta. You work alone.

8hrs * 60mins = 480mins

10 x 4 x 2= 80 Updates

TAKT time = 6 minutes per update

TAKT Time – Example(s)

Kanban

Kanban Board

Batch Quantity

5 Factors That Influence Card Formulas

▰ Customer takt

▰ Regular time of replenishment system

▰ Changes in replenishment system

▰ Customer changes

▰ Buffer/safety margin

Number of Kanban = DT(1+x)/C

D: Demand per unit of timeT: Lead timeC: Container capacityX: Buffer, or safety factor

Number of Kanban = DT(1+x)/C

KAIZEN Event

KAIZEN Examples

KAIZEN Event

▰ Clear Objectives

▰ Quick & Simple

▰ Time bound ( 1 week or 2 weeks )

▰ Quick Results / Quick wins

KAIZEN Event – “Snappy”

▰ Preparation for the Workshop

▰ The Workshop

▰ Post KAIZEN Follow Up

KAIZEN Event – 3 Stages of Implementation

▰ Define the Kaizen Goal

▰ Select the “right” team members

▰ Collect all related data / photos / documents

▰ Plan the date, agenda, resource allocation

KAIZEN Event – Stage 1 Pre-Event Planning

▰ Develop & Validate the current state

▰ Identify Improvements

▰ Develop Future State

▰ Action plan creation

▰ Develop 5 / 15 / 30 day deliverables

KAIZEN Event – Stage 2 Kaizen Workshop

▰ Review action plan weekly

▰ Review process metrics – improvement trend

▰ Discuss & document learning outcomes

▰ Identify further opportunities for improvement.

KAIZEN Event – Stage 3 Post Kaizen follow up

Measurement System Analysis

▰ Measurements must provide Value▰ Measurements must provide information▰ Measurements must provide knowledge

▰ Not enough to measure the “right things” but to measure the “right things right”

▰ To do so they must be accurate, reliable & precise ▰ A true reflection of the actual status


▰ ACCURACY / BIAS

▰ RESOLUTION / DISCRIMINATION

▰ LINEARITY

▰ STABILITY

▰ REPEATABILITY & REPRODUCIBILITY (Gage R&R)


Repeatability & Reproducability

Measurement System Analysis - Guage R&R

Measurement System Analysis - Guage R&R

Weather 19

Security Alert 25

Industrial Action 2

Radar Malfunction 1

Suspicious Luggage 15

Pilot shortage 25

Plane grounded 70

Lost Luggage 100

Missed connection 300

Ticket error 57

1) Analytical

2) Quiet Brainstorming

3) Role Play Brainstorming

4) Supported Brainstormng

5) Radically Creative Brainstorming

Brainstorming Strategies

▰ Mindmapping

▰ Reverse Brainstorming

▰ Gap Filling

▰ Drivers Analysis

▰ SWOT Analysis

▰ 5 Whys

▰ Starbursting

Analytical

▰ Brain Netting

▰ Brainwriting

▰ Collaborative Brainwriting

Quiet Brainstorming

▰ Role Storming

▰ Reverse Thinking

▰ Figure storming

Role Play Brainstorming

▰ Stepladder Brainstorming

▰ Round Robin Brainstorming

▰ Rapid Ideation

▰ Trigger Storming

Supported Brainstorming

▰ Charrette

▰ “What If”

Radically Creative Brainstorming

Ishikawa Diagram

IMPROVE

What are the 5 S’s?

SMED (Single Minute Exchange of

Dies)

25 Min TAT in Ryanair90 Min TAT in most airlines

SMED (Single Minute Exchange of

Dies)

Total Productive Maintenance (TPM)

Overall Equipment Effectiveness (OEE)

Availability takes into account all events that stop planned production long enough where it makes sense to track a reason for being down (typically several minutes).

Availability = Run Time / Planned Production Time


Performance takes into account anything that causes the manufacturing process to run at less than the maximum possible speed when it is running (including both Slow Cycles and Small Stops).

Performance is the ratio of Net Run time : Run Time

Performance = Ideal cycle time * Total Count / Run Time


Quality takes into account manufactured parts that do not meet quality standards, including parts that need rework.

OEE Quality is similar to RTY, in that it defines Good Parts as parts that successfully pass through the manufacturing process the first time without needing any rework.

Quality = Good Count / Total Count


Calculating OEE

▰ First flight of an aircraft

▰ First drug release

▰ First robotic surgery

▰ First autonomous car

▰ First airbag deployment

PILOT: Why Pilot the improvement(s)

Run Charts V Control Charts

An X-Bar and R-Chart is a type of statistical process control chart for use with data collected in subgroups at set time intervals - usually between 3 to 10 pieces per subgroup.

The Mean (X-Bar) of each subgroup is charted on the top graph and the Range (R) of the subgroup is charted on the bottom graph.

Control

▰ R-Chart Average Range Quantitative

▰ X- Chart Average Mean Quantitative

X-bar charts are used to monitor the mean of a process based on samples taken from the process at given times (hours, shifts, days, weeks, months, etc.).

Control Charts

Indicates how the average or Mean changes over time

Monitors Process Mean when calculating subgroups at frequent intervals

Each Graph point is a subgroup mean value

The Process Mean is the centre line

Control X Bar Chart

Indicates how a range of subgoups changes over time

Monitor Process Variability

Each plot point is the subgroup range value

Control X Bar Chart

Run Charts V Control Charts – I BAR Chart

“Individual = I “

Control Charts

Common Cause Variation, (Natural Problems), Random but predictable. Reflects activity within the system.

Special Cause Variation, Unexpected glitches, unusual, non expected variations. Outside Control Limits.

Control X Bar Chart

Apply “Intelligent Limits” – Now the chart is informative

Run Charts V Control Charts

Control X Bar Chart Example

Out-of-control signalsA single point outside the control limits.

Two out of three successive points are on the same side of the centerline and farther than 2 σ from it.

Four out of five successive points are on the same side of the centerline and farther than 1 σ from it.

A run of eight in a row are on the same side of the centerline.

Control X Bar Chart

Control

Run Charts

Control

Poke Yoka – Error Proofing

Poka Yoke - Error Proofing.

Poke Yoka – Error Proofing

Visual Management

The objectives of Visual Management are:

▰ Clarify waste.

▰ Display problems in a simpler way.

▰ Clearly indicate your efficiency goals.

▰ Increase effective communication.

Visual Management

▰ Stock controls, auditing boards, and shadow boards.

▰ Visual management can improve communication and help improve efficiency.

▰ Other times, visual aids can become confusing and too

much to remember.

Visual Management Example

Visual Management

Force Field Analysis

Process Output = Sum of all “controlled inputs”

Y = f (Xi) Quality isn’t “inspected in” or “retrofitted” it is “built in”

Control – Process Output

Fail Safe

Visual Control Tools

Visual Aids

Procedures , Instructions and Manuals

Make it the only way

Warning Systems

Illustrating

Control – Daily Huddles

▰ Keeping close to the action▰ Finger on the pulse of the company▰ Maintaining the culture and atmosphere▰ Most efficient communication

Control – Process Output

Control – Maintain the Culture

▰ Means winning “one heart and soul at a time”▰ Each individual comes to a full commitment at their

own individual pace▰ Be patient – some who embrace it slowly become

the strongest advocates▰ You know you are there when all employees engage

in identifying and eliminating waste every day


VIDEO: https://www.youtube.com/watch?v=jYby_HczyDA


https://www.youtube.com/watch?v=jYby_HczyDA

▰ A kata typically refers to fundamental movements in Japanese martial arts but can refer to any basic form, routine, or pattern of behaviour

▰ Improvement kata and coaching kata▰ Continuous improvement through the scientific

problem-solving method of plan, do, check, act (PDCA) a daily habit

▰ Coaching katais the repeating routine by which lean leaders and managers teach the improvement kata to everyone in the organization.

Control – Culture & Habit KATA

Control – Reward & Recognition

▰ PEERS

▰ Downstream

▰ Upstream

▰ Interested Parties

▰ From basic Suggestion boxes -> Major project deployments

Control – Reward & Recognition

A process audit is an examination of results to determine whether the activities, resources and behaviours that cause them are being managed efficiently and effectively.

A process audit is not simply following a trail through a department from input to output - this is a transaction audit

Control - Audit

Control - Audit

Quality Plan

▰ An incident response plan is a general plan to deal with a number of potential crisis that can undermine your business , service or product.

▰ Virus / Climate / Economic / Political / Staff / IP Loss / Upstream quality event. / Downstream event.

Response Plan: Expecting the unexpected

Prevention Strategies

Response Strategies

Recovery Strategies

An incident response plan should include:

▰ Plan activation details, including a clear statement of the circumstances when the plan will be activated and who is authorised to do so

▰ Incident response team details, including key roles and responsibilities

▰ An emergency kit ▰ Evacuation procedures for your premises▰ A communication plan, including key communication

methods

Response Plan: Expecting the unexpected

lean six sigma module 1 resources/dcm... · 2021. 6. 9. · dmadv / dfss xp 5 project ... module 16...

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