lean six sigma roadmap

Lean Six Sigma

Copyright 2005, AIT Group Inc. All rights reserved. 1

Lean Six SigmaLean Six Sigma RoadmapRoadmap


Lean Six Sigma

ImproveImprove

Lean Six Sigma Improvement Process Road Map

• Review Project Charter • Validate Problem Statement and Goals

• Validate Voice of the Customer & Voice of the Business

• Validate Financial Benefits• Validate High-Level Value Stream Map and Scope

• Create Communication Plan• Select and Launch Team• Develop Project Schedule• Complete Define Gate

• Identify Potential Root Causes

• Reduce List of Potential Root Causes

• Confirm Root Cause to Output Relationship

• Estimate Impact of Root Causes on Key Outputs

• Prioritize Root Causes• Complete Analyze Gate

• Develop Potential Solutions• Evaluate, Select, and Optimize Best Solutions

• Develop ‘To-Be’ Value Stream Map(s)

• Develop and Implement Pilot Solution

• Confirm Attainment of Project Goals

• Develop Full Scale Implementation Plan

• Complete Improve Gate

• Implement Mistake Proofing• Develop SOP’s, Training Plan & Process Controls

• Implement Solution and Ongoing Process Measurements

• Identify Project Replication Opportunities

• Complete Control Gate• Transition Project to Process Owner

• Project Charter• Voice of the Customer and Kano Analysis

• SIPOC Map• Project Valuation / ROIC Analysis Tools

• RACI and Quad Charts• Stakeholder Analysis• Communication Plan• Effective Meeting Tools• Inquiry and Advocacy Skills• Time Lines, Milestones, and Gantt Charting

• Pareto Analysis

• Value Stream Mapping• Value of Speed (Process Cycle Efficiency / Little’s Law)

• Operational Definitions• Data Collection Plan• Statistical Sampling• Measurement System Analysis (MSA)

• Gage R&R• Kappa Studies• Control Charts• Histograms• Normality Test• Process Capability Analysis

• Process Constraint ID and Takt Time Analysis

• Cause & Effect Analysis• FMEA• Hypothesis Tests/Conf. Intervals

• Simple & Multiple Regression• ANOVA• Components of Variation• Conquering Product and Process Complexity

• Queuing Theory

• Replenishment Pull/Kanban• Stocking Strategy• Process Flow Improvement • Process Balancing• Analytical Batch Sizing• Total Productive Maintenance• Design of Experiments (DOE)• Solution Selection Matrix• Piloting and Simulation

• Mistake-Proofing/ Zero Defects

• Standard Operating Procedures (SOP’s)

• Process Control Plans• Visual Process Control Tools• Statistical Process Controls (SPC)

• Solution Replication• Project Transition Model• Team Feedback Session

• Value Stream Map for Deeper Understanding and Focus

• Identify Key Input, Process and Output Metrics

• Develop Operational Definitions• Develop Data Collection Plan• Validate Measurement System• Collect Baseline Data• Determine Process Capability• Complete Measure Gate

Tools

Activities

AnalyzeAnalyze ControlControlMeasureMeasureDefineDefine

Kaizen, 5S, NVA Analysis,Generic Pull Systems,

Four Step Rapid Setup Method

Kaizen, 5S, NVA Analysis,Generic Pull Systems,

Four Step Rapid Setup Method

Identify and Implement Quick ImprovementsIdentify and Implement Quick Improvements


Lean Six Sigma Define

• Develop a Project Charter with the Project Focus, Key Metrics, and Project Scope

• Select Team Members and Launch Project• Identify Stakeholders and develop a communication plan• Identify the Customers and Capture the “Voice of the

Customer” Requirements (typically Quality and/or Speed)• Identify the Process Owner and Capture the “Voice of the

Business” Requirements (typically Cost and/or Speed)• Develop Critical Customer Requirements (CCR’s) and Critical

Business Requirements (CBR’s)• Finalize Project Focus and Modify Project Charter• Define Gate Review

= key deliverable


Lean Six Sigma Measure

• Identify Key Input, Process and Output Metrics• Clearly define Operational Definitions• Develop a Data Collection Plan• Validate the Measurement Systems• Collect Baseline Data• Determine Process Performance / Capability• Validate the Business Opportunity• Identify “Quick Win” Opportunities• Measure Gate Review

= key deliverable


Lean Six Sigma Analyze

• Brainstorm Key Process Input Variables & Key Process Variables (KPIVs & KPV’s, I.e. Potential Root Causes)

• Prioritize Root Causes• Conduct Root Cause Analysis • Validate the Root Causes• Estimate the Impact of Each Root Cause on the Project’s

Performance Output• Quantify the Opportunity• Prioritize Root Causes• Analyze Gate Review

= key deliverable


Lean Six Sigma Improve

• Develop Potential Solutions• Develop Evaluation Criteria & Select Best Solutions• Evaluate the Solutions for Risk• Optimize the Solution• Develop ‘To-Be’ Process Map(s) and High-Level

Implementation Plan• Develop Pilot Plan and Pilot the Solution• Improve Gate Review

= key deliverable


Lean Six Sigma Control

• Institutionalize Process Changes and Controls• Finalize SOP’s, Training Plan & Process Control System• Implement Process Changes and Controls• Stabilize and Begin Monitoring the Process• Transition Project to Process Owner• Identify Project Replication Opportunities• Prove Changes Resulted In Improvement• Calculate Financial Benefits• Control Gate Review

= key deliverable


Lean Six Sigma Successful Project Factors

• Management and/or Champion involvement• Project selected is clearly aligned with strategic company objectives• Project is one you need to work anyway• Problem, Goal and Metrics are well defined and agreed upon• Scope is well defined and reasonable• Data is available• Defects and Waste issues; tools are applicable• Management resource commitment

• FREQUENT Communication about the project – candidate to team and management

• Ability to implement potential solutions, not just to come up with recommendations


Lean Six Sigma

Deployment Principles That Always Work “The Recipe”

1. Executive engagement – Rule of 3 5’s: 5 times a week, in the presence of 5 people, spend 5 minutes talking about Lean Six Sigma deployment

2. A strong and respected Deployment Champion should report to the Top Leader

3. Organization elements own resources & are accountable for project results

4. Deploy critical mass of key resources full-time (Black Belts/ Champions)5. Resources should be selected from “future leaders” of the organization6. Establish a rigorous process for Project Identification and Selection within

the organization7. Actively reduce Projects in Process to reduce project cycle times.8. Track results rigorously: Lean Six Sigma results should “pay as you go”

and be confirmed by objective parties9. Black Belts must have team leadership skills10.Design the Lean Six Sigma deployment as a journey


Lean Six Sigma High Level DMAIC Approach

Define Measure Analyze Improve Control

Preliminary Data Analysis

SIPOC

Value StreamMapping

NEM Baseline

(IMR)

ProcessMapping

ProcessCapability

MeasurementSystem Analysis

FMEA

AdvancedNEM

(XbarR)

ComponentsOf Variation

/ ANOVA

DOE Execution

DOE PlanningTemplate

ClassificationOf Control

Issues

Control Methods

ControlPlanDOE Analysis

& Results

• When did it happen?• Where did it happen?• What is the success criteria?

• Where in the process do we need to scope efforts?• What is the target value?• What are the specs?

• How much waste is in this process?• What is our value added percentage?

• What does the process look like?• What does the process look like from the product’s view?

• What changes have been made to the process?• What possible variables relate to the change ?

• How often does this happen?• What trends have we observed relative to the target?

• Is the process capable?• Do we want to reduce variation?• Do we want to shift the mean?

• Is the measurement process capable?• Is the test a destructive test?

• What is causing failure?• What is the impact of failure?• How do we mitigate the risk of failure?

• What variables are contributing to mean shifts? • What variables are contributing to variation?

• What is the sub- grouping strategy?

• What does the DOE process plan look like?•What responses are we interested in (Average, Range)?• What variables do we want to optimize? Why?

• What observations did we have during the experiment?• What roles need to be established to run the DOE?

• What variables are critical to the process?• How should the critical variables be set?

• How will we address Org. issues?• How will we address Behavioral issues?

• What variables do we need to control?

• What control methods will be used to ensure gains are sustained?

•Who is responsible for implementing the control?

•Who is accountable for the process results?

Operator & Product

Activity Analysis


Lean Six Sigma

x xx

x

xxx

x xxxx

xx

x

x

xxxx

xxxx

xxxxxx

xx xxxx

xxxx xxxxxx

xxxx xxxx

Few

X’s

M

any

x’s

VELOCITYOPPORTUNITY (Reduce Waste)

VARIATION OPPORTUNITY

(Reduce Variation)

Detailed Process MapPMAP

Failure Modes AnalysisFMEA

Numerical Evaluation of Metrics (NEM)

Design of ExperimentsDOE

Mistake Proofing

Regression Analysis

Control Strategies

MeasureMeasure

AnalyzeAnalyze

ImproveImprove

ControlControl

x xx xx

xx

xx

xx x

x xx x xx xxx

xxx x

x

xx x

xThought Map

TMAP

SIPOCDefineDefine Value Stream

Mapping

Product Families

Product FlowAnalysis

Employee ActivityAnalysis

Set-upReduction

Improvement Considerations

Workplace Design

Standard Work

PerformanceMetrics

5S Implementation

Y=f(x)

x

Measurement System MSE

T-Test, Chi Square, ANOVA, COVMaterial

Replenishment

Funnel-Down Many Variables to the Critical Few!


Lean Six Sigma

Baseline Process

Characterize Processes

ID Process Failure Modes

Evaluate Measurement Systems

ID Critical Variables

Implement Process Improvements

Control/MaintainProcess Improvements

Establish Project Scope

Problem Resolution Methodology

6σ Project Phases

Measure

Analyze

Improve

Control

Define

2x/day2x/day

2x/week2x/week

SupplierSupplier

I60 coils

I60 coils

I3000 pcs

II3000 pcs

I

PC & L

Weekly Build Schedule

Daily Ship Schedule

4 week rolling foreca st

6 week rolling foreca stWeekly Orde r

Weekly Orde r

Custome r

Part A = 50

Part B = 120Part C = 70

Custome rCustome r

Part A = 50


Custome rCustome r

Part A = 50


Custome rCustome r

Part A = 50


Custome r/

Distributo r

Demand/wee k:

Custome r

Part A = 50


Custome rCustome r

Part A = 50


Custome rCustome r

Part A = 50


Custome rCustome r

Part A = 500


Custome r/

Distributo r

Demand/wee k:

Straightening

Takt = 20 sec

C.T. = 20.4 sec

D.T. =FTQ = 99%

Lot Size =

# of Shifts = 2WIP = 1500 pcs

Straightening

Takt

D.T. = 3.1%FTQ = 99%

C/O Ti me = 1 hrLot Size =


ShippingShippingPoint/Chamfe r

Takt = 20 secC.T. = 10 sec

D.T. =

FTQ = 100%C/O Ti me = 1 5 min

Lot Size =

# of Shifts = 2WIP = 100 pc

Point/Chamfe r

Takt

D.T. = 1%


Lot Size =


Draw

Takt = 19 min

C.T. = 15 min

D.T. =FTQ = 99%

C/O Ti me = 3 0 minLot Size =

# of Shifts = 2WIP = 8 coils

Draw

Takt = 19 min

C.T. = 15 min

D.T. = 4%FTQ = 99%



Anneal

Takt = 240 minC.T. = 200 mi n

D.T. =

FTQ = 100%C/O Ti me =

Lot Size =


Anneal


D.T. = 0.5%

FTQ = 100%C/O Ti me = 3 0 m

Lot Size =

# of Shifts = 2

Pickle


D.T. =

FTQ = 100%



Pickle


D.T. = 1%

FTQ = 100%


# of Shifts = 2WIP =

20 coils20 coils20 coils20 coils6 coils

2x/day2x/day

2x/week2x/week

SupplierSupplier

I60 coils

I60 coils

I3000 pcs

II3000 pcs

I

PC & L


Daily Ship Schedule



Weekly Orde r

Custome r

Part A = 50


Custome rCustome r

Part A = 50


Custome rCustome r

Part A = 50


Custome rCustome r

Part A = 50


Custome r/

Distributo r

Demand/wee k:

Custome r

Part A = 50


Custome rCustome r

Part A = 50


Custome rCustome r

Part A = 50


Custome rCustome r

Part A = 500


Custome r/

Distributo r

Demand/wee k:

Straightening

Takt = 20 sec

C.T. = 20.4 sec

D.T. =FTQ = 99%

Lot Size =


Straightening

Takt

D.T. = 3.1%FTQ = 99%





D.T. =


Lot Size =


Point/Chamfe r

Takt

D.T. = 1%


Lot Size =


Draw

Takt = 19 min

C.T. = 15 min

D.T. =FTQ = 99%



Draw

Takt = 19 min

C.T. = 15 min

D.T. = 4%FTQ = 99%



Anneal


D.T. =


Lot Size =


Anneal


D.T. = 0.5%

FTQ = 100%C/O Ti me = 3 0 m

Lot Size =

# of Shifts = 2

Pickle


D.T. =

FTQ = 100%



Pickle


D.T. = 1%

FTQ = 100%




2x/day2x/day

2x/week2x/week

SupplierSupplier

I60 coils

I60 coils

I3000 pcs

II3000 pcs

I

PC & L


Daily Ship Schedule



Weekly Orde r

Custome r

Part A = 50


Custome rCustome r

Part A = 50


Custome rCustome r

Part A = 50


Custome rCustome r

Part A = 50


Custome r/

Distributo r

Demand/wee k:

Custome r

Part A = 50


Custome rCustome r

Part A = 50


Custome rCustome r

Part A = 50


Custome rCustome r

Part A = 500


Custome r/

Distributo r

Demand/wee k:

Straightening

Takt = 20 sec

C.T. = 20.4 sec

D.T. =FTQ = 99%

Lot Size =


Straightening

Takt

D.T. = 3.1%FTQ = 99%





D.T. =


Lot Size =


Point/Chamfe r

Takt

D.T. = 1%


Lot Size =


Draw

Takt = 19 min

C.T. = 15 min

D.T. =FTQ = 99%



Draw

Takt = 19 min

C.T. = 15 min

D.T. = 4%FTQ = 99%



Anneal


D.T. =


Lot Size =


Anneal


D.T. = 0.5%

FTQ = 100%C/O Ti me = 3 0 m

Lot Size =

# of Shifts = 2

Pickle


D.T. =

FTQ = 100%



Pickle


D.T. = 1%

FTQ = 100%




2x/day2x/day

2x/week2x/week

SupplierSupplier

I60 coils

I60 coils

I3000 pcs

II3000 pcs

I

PC & L


Daily Ship Schedule



Weekly Orde r

Custome r

Part A = 50


Custome rCustome r

Part A = 50


Custome rCustome r

Part A = 50


Custome rCustome r

Part A = 50


Custome r/

Distributo r

Demand/wee k:

Custome r

Part A = 50


Custome rCustome r

Part A = 50


Custome rCustome r

Part A = 50


Custome rCustome r

Part A = 500


Custome r/

Distributo r

Demand/wee k:

Straightening

Takt = 20 sec

C.T. = 20.4 sec

D.T. =FTQ = 99%

Lot Size =


Straightening

Takt

D.T. = 3.1%FTQ = 99%





D.T. =


Lot Size =


Point/Chamfe r

Takt

D.T. = 1%


Lot Size =


Draw

Takt = 19 min

C.T. = 15 min

D.T. =FTQ = 99%



Draw

Takt = 19 min

C.T. = 15 min

D.T. = 4%FTQ = 99%



Anneal


D.T. =


Lot Size =


Anneal


D.T. = 0.5%

FTQ = 100%C/O Ti me = 3 0 m

Lot Size =

# of Shifts = 2

Pickle


D.T. =

FTQ = 100%



Pickle


D.T. = 1%

FTQ = 100%




Process Name: Copper TollingProcess Owner: Eric Sandford

Suppliers Inputs Outputs(Providers of the required resources)

(Resources required by the process)

(Deliverables from the process)

Requirements

Copper Manager Orders quantity Quantity per merchant. Copper deliveredfrom Delphi plants Delivered/Timing to suppliers forto merchant transformation

Delphi accounting Index used, timing & Accuracypurchasing quantity's delivered &

reported.

Delphi Plants Forecast from D Plants Level & StablePC&L (Customer)

Merchants Global sourcing Selection of merchantssupply quotes quotes based on

Delphi legal risk Bailment contract Risk protectionmanagement (t.o),purchasing

Buyer and receipt Dacor invoices, plant Accurate Payment to fabricationclerk receipts, fabrication supplier

buyer P.O. 's +

Delphi cost Delphi inventory records Inventory Reconciliation Inventory accountingaccounting and costsSupplier cost accounting +

P.O. price entry P.O. price and market Accurate Payment to merchantPlatts index, quantity

=

All-In Costs

Process(Top level description of the activity)

Requirements received from Delphi Plants

Copper Tolling

When fabricated product is

paid

Requirements

Cathode deliveredon time, quantity, Fabrication Suppliersright brand, and quality

Per terms correctamount

Accurate quantity's Delphiand value Fabrication Suppliers

Per terms correct Merchantsamount

Customers(Stakeholders who place the requirements

on the outputs)

Process Name: Copper TollingProcess Owner: Eric Sandford

Suppliers Inputs Outputs(Providers of the required resources)

(Resources required by the process)

(Deliverables from the process)

Requirements

Copper Manager Orders quantity Quantity per merchant. Copper deliveredfrom Delphi plants Delivered/Timing to suppliers forto merchant transformation

Delphi accounting Index used, timing & Accuracypurchasing quantity's delivered &

reported.

Delphi Plants Forecast from D Plants Level & StablePC&L (Customer)

Merchants Global sourcing Selection of merchantssupply quotes quotes based on

Delphi legal risk Bailment contract Risk protectionmanagement (t.o),purchasing

Buyer and receipt Dacor invoices, plant Accurate Payment to fabricationclerk receipts, fabrication supplier

buyer P.O. 's +

Delphi cost Delphi inventory records Inventory Reconciliation Inventory accountingaccounting and costsSupplier cost accounting +

P.O. price entry P.O. price and market Accurate Payment to merchantPlatts index, quantity

=

All-In Costs

Process(Top level description of the activity)

Requirements received from Delphi Plants

Copper Tolling

When fabricated product is

paid

Requirements

Cathode deliveredon time, quantity, Fabrication Suppliersright brand, and quality

Per terms correctamount

Accurate quantity's Delphiand value Fabrication Suppliers

Per terms correct Merchantsamount

Customers(Stakeholders who place the requirements

on the outputs) Identify Product

Portfolio Plans

Execute Divisional Strategic Analysis

Identify Relationship

Broker -or-Share Knowledge

Customer

Directed?

Apply Lessons Learned

Complete Delphi Selling

Strategy

Determine Business

Opportunities

Business

Pursued?

Info Shared

Between Divisions?

N! Customer Directed BusinessS CI0 (Budget, Resources)S PI (Budget, Resources)N! ‘In Your Head’S Opportunity Screener (Budget, Resources)

BusinessPlan

N! RelationshipsN! Strategic ImportanceN ROLR (Right of Last Refusal)C Red FlagsC StrengthsC Divisional Product StrategyC Pursuit Plan

ForecastStrategy

Shared InformationLevel Knowledge BaseLeveraged Synergies

C Tech ShowsC Customer Contact CallsC Influence PeddlingC! Divisional Strategic AnalysisKey:

! - CriticalN - NoiseS - Standard Operating ProcedureC - Controllable

No

No

No

Yes

Yes

Yes

C Budget DisconnectsC Resource DisconnectsC Poor Documentation

N Vehicle VolumeN Vehicle TimingN ContentN Ford Goals & ObjectivesN Personalities/RelationshipsC Customer Strategy/PortfolioC Divisional StrategiesS Divisional ProcessesN Divisional IntelligenceS Divisional Quoting Philosophy

Product Portfolio Plan

Business

Pursued?

ContinuousImprovement

No Quote

Proceed With

Sourcing

Yes

No

C Linked Divisional Strategic AnalysisC! Unlinked Divisional Strategic Analysis

Unified Front to CustomerStrategic Analysis for Selling (comparison & synergies applied)Divisional Intelligence & Lessons Learned (comparison & synergies applied)Philosophy of Quoting Techniques (comparison & synergies applied)

C Profit MarginC Costs to Do

Quote

C Doesn’t Fit Divisional Product StrategyC Doesn’t Fit Pursuit PlanC Poor Business Case

No Quote Letter to

Ford

Note: Not part of strategic analysis for selling process

Identify Product

Portfolio Plans

Execute Divisional Strategic Analysis

Identify Relationship

Broker -or-Share Knowledge

Customer

Directed?

Apply Lessons Learned

Complete Delphi Selling

Strategy

Determine Business

Opportunities

Business

Pursued?

Info Shared

Between Divisions?

N! Customer Directed BusinessS CI0 (Budget, Resources)S PI (Budget, Resources)N! ‘In Your Head’S Opportunity Screener (Budget, Resources)

BusinessPlan

N! RelationshipsN! Strategic ImportanceN ROLR (Right of Last Refusal)C Red FlagsC StrengthsC Divisional Product StrategyC Pursuit Plan

ForecastStrategy

Shared InformationLevel Knowledge BaseLeveraged Synergies

C Tech ShowsC Customer Contact CallsC Influence PeddlingC! Divisional Strategic AnalysisKey:

! - CriticalN - NoiseS - Standard Operating ProcedureC - Controllable

No

No

No

Yes

Yes

Yes

C Budget DisconnectsC Resource DisconnectsC Poor Documentation

N Vehicle VolumeN Vehicle TimingN ContentN Ford Goals & ObjectivesN Personalities/RelationshipsC Customer Strategy/PortfolioC Divisional StrategiesS Divisional ProcessesN Divisional IntelligenceS Divisional Quoting Philosophy

Product Portfolio Plan

Business

Pursued?

ContinuousImprovement

No Quote

Proceed With

Sourcing

Yes

No

C Linked Divisional Strategic AnalysisC! Unlinked Divisional Strategic Analysis

Unified Front to CustomerStrategic Analysis for Selling (comparison & synergies applied)Divisional Intelligence & Lessons Learned (comparison & synergies applied)Philosophy of Quoting Techniques (comparison & synergies applied)

C Profit MarginC Costs to Do

Quote

C Doesn’t Fit Divisional Product StrategyC Doesn’t Fit Pursuit PlanC Poor Business Case

No Quote Letter to

Ford

Note: Not part of strategic analysis for selling processVOC

Critical X’s

Product Line Sales $ (YTD) Gross Margins Production Volumes

Market Comments

Brackets $ 70.3 Million $ 2.8 M / 39% 80 Million High vol -Growing Cylindrical

Wheels $ 60 Million $ 2.3 M / 38% 94 Million High vol. Growing Autom.

Closures $ 31.1 Million $ 1 M / 33% 15 Million Large Diameter Old Equip.

Shafts $ 21.5 Million $ 1 M / 40% 5.4 Million Hydraulic Small batches

Separated Operations $ 1.7 Million $ 0.3 M / 19% 1.3 Million High LabourOld equip.

Seals $ 5 Million $ 0.7 M / 7% 4.5 Million Automotive

Other Products $ 4 Million $ 0.3 M / 17% 9.3 Million

Product Line Sales $ (YTD) Gross Margins Production Volumes

Market Comments

Brackets $ 70.3 Million $ 2.8 M / 39% 80 Million High vol -Growing Cylindrical

Wheels $ 60 Million $ 2.3 M / 38% 94 Million High vol. Growing Autom.

Closures $ 31.1 Million $ 1 M / 33% 15 Million Large Diameter Old Equip.

Shafts $ 21.5 Million $ 1 M / 40% 5.4 Million Hydraulic Small batches

Separated Operations $ 1.7 Million $ 0.3 M / 19% 1.3 Million High LabourOld equip.

Seals $ 5 Million $ 0.7 M / 7% 4.5 Million Automotive

Other Products $ 4 Million $ 0.3 M / 17% 9.3 Million

What is the

project scope?

Project Charter

Project Justification

SIPOC

Product Families

Thought Map

How is the process

performing today?

Numerical Evaluation of Metrics

Misc:Tolerance:Reported by:Date of study:Gage name:

0

500

400

300

200

321

Xbar Chart by Administrato

Sam

ple

Mea

n

Mean=348.4UCL=365.8LCL=331.1

0

50

40

30

20

10

0

321

R Chart by Administrato

Sam

ple

Ran

ge

R=17

UCL=43.76

LCL=0

54321

500

400

300

200

Sample

AdministratoAdministrato*Sample Interaction

Aver

age

1 2 3

321

500

400

300

200

Administrato

By Administrato

54321

500

400

300

200

Sample

By Sample

%Contribution %Study Var

Part-to-PartReprodRepeatGage R&R

100

50

0

Components of Variation

Per

cent

Gage R&R (ANOVA) for Labor Cost/T

Measurement System Evaluation

Data Integrity?

Value Stream Map

Process Map

D - Defective Production O - Over ProductionT - TransportationW - WaitingI - Inventory

M - MotionP - Processing

The Seven Wastes

AREA NAME: BEFORE - Car rier Asse mbly - Ball Bearings PREPARED BY:

SUPERVISOR: DATE:

NOTE: Depict rough scale o f equip ment layout; a nd, dra w a point to poi nt diagr am of t he com plete pr oduct flow

Trash

Bench

Parts Rack

ToolBox

Part Box

OVEN

Press

Vice

1

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AREA NAME: BEFORE - Car rier Asse mbly - Ball Bearings PREPARED BY:

SUPERVISOR: DATE:

NOTE: Depict rough scale o f equip ment layout; a nd, dra w a point to poi nt diagr am of t he com plete pr oduct flow

Trash

Bench

Parts Rack

ToolBox

Part Box

OVEN

Press

Vice

1

2

3

4

5

6

7

89 10

11

121314

15

16

17

1819

20

212223

34

36

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3839

40

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43

44

24

25

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27

35

33

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Trash

Bench

Parts Rack

ToolBox

Part Box

OVEN

Press

Vice

Trash

Bench

Parts Rack

ToolBox

Part Box

OVEN

Press

Vice

1

2

3

4

5

6

7

89 10

11

121314

15

16

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1819

20

212223

34

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3839

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Where is the waste occurring

?

Process Flow & Employee Activity Analysis

Failure Modes and Effects Analysis:

Work with Customer to increase budget allocation for payments

605

Accounts payable policy3

Limited budget allocation for weekly payments4

Delay in payment process (30 days)

Lack of funds budgeted for payment

Approve payment

Reduce disputes to alleviate workload

755None3

Heavy workload creating conflicting priorities5

Delay in payment due to dispute (40 days)

Slow response by business unit

Dispute resolution & re-issue

Strengthen ATL communication with Billing by incentivisedroles

755None3

Mis-communication between ATL and Billing5

Delay in payment due to invoice dispute (40 days)

Customer has dispute with invoice

Review and confirm invoices

Need to study dispute issues for reduction in disputes, Focus on Price

804

Pricing database4

Price, Quantity or Work-scope does not agree with quote5

Customer disputes invoice delaying payment (40 days)

Invoice is incorrectIssue Invoice

Actions(What actions are

being done to eliminate the cause?)

RPN

DET

Controls(What controls are currently in place to catch or prevent this

failure?)

OCC

Causes(What is the root cause reason for

the failure?)

SEV

Failure Effects(How does the failure affect the function of

the step?)

Failure Mode

(Describe what could go wrong.)

Part/process(What is the

function of each step?)

Work with Customer to increase budget allocation for payments

605

Accounts payable policy3

Limited budget allocation for weekly payments4

Delay in payment process (30 days)

Lack of funds budgeted for payment

Approve payment

Reduce disputes to alleviate workload

755None3

Heavy workload creating conflicting priorities5

Delay in payment due to dispute (40 days)

Slow response by business unit

Dispute resolution & re-issue

Strengthen ATL communication with Billing by incentivisedroles

755None3

Mis-communication between ATL and Billing5

Delay in payment due to invoice dispute (40 days)

Customer has dispute with invoice

Review and confirm invoices

Need to study dispute issues for reduction in disputes, Focus on Price

804

Pricing database4

Price, Quantity or Work-scope does not agree with quote5

Customer disputes invoice delaying payment (40 days)

Invoice is incorrectIssue Invoice

Actions(What actions are

being done to eliminate the cause?)

RPN

DET

Controls(What controls are currently in place to catch or prevent this

failure?)

OCC

Causes(What is the root cause reason for

the failure?)

SEV

Failure Effects(How does the failure affect the function of

the step?)

Failure Mode

(Describe what could go wrong.)

Part/process(What is the

function of each step?)

Actions for improvement and next focus area identified• ATL’s compensation will be dependent on customer satisfaction scores to provide incentive for improved communication

• Measure occurrences of no payment due to lack of funds, communicate to customer with disciplinary action of shipment hold

• Need to further study source of disputes to resolve disputes

Failure Modes & Effects Analysis

How do we mitigate process

risk?What does the process look like?

Define Measure Analyze

Where should

we focus?

Hypothesis Testing

Two-Sample T-Test and CI: Weekly, Quarterly

N Mean StDev SE MeanWeekly 105 55.41 8.63 0.84Quarterly 8 55.50 8.21 2.9

Estimate for difference: -0.08908395% CI for difference: (-7.056468, 6.878301)T-Test of difference = 0 (vs not =): T-Value = -0.03 P-Value = 0.977 DF = 8

XQ = 55.50XW = 55.41

Q = 8.21σ̂W = 5.63σ̂

XQ = 55.50XW = 55.41

Q = 8.21σ̂W = 5.63σ̂

Conclusions:There is no significant difference between weekly and quarterlygrant dates.

Weekly vs. Quarterly Grant Date1/1/02 – 12/31/03

Hiring Location (Site)

Tota

l No

Erro

rs

TO - RMLTOSalesField

10

8

6

4

2

0

Boxplot of Total No Errors by Hiring Location (Site)

One-way ANOVA: Total No Errors versus Hiring Location (Site)

Source DF SS MS F PHiring Loc 3 2.12 0.71 0.31 0.821Error 117 269.95 2.31Total 120 272.07

S = 1.519 R-Sq = 0.78% R-Sq(adj) = 0.00%

Hiring location is not a significant

contributing factor to errors!

T-Test ANOVA

GenderChi- Square

What variables

are causing variation?

$ $

What is my project strategy?

Copyright 2005, AIT Group Inc. All rights reserved.

Presenter

Presentation Notes

One example of how the tools might fit together. There are many other ways.


Lean Six Sigma

Regression

Measure & Monitor

Standard Work

Material Replenishment

Cell or Process Design/To-Be Work Flow

Standard Job SheetPart N umber Part D escri pti on Part Famil y Date: Revisi on:

Quality Check Safety Standard Wor k

in Process Takt T ime Lead Ti me Number of Operators




15s 200s 350s 62s 401s

245s

190s 25s 33s 161s 191s

Operator 1 Operator3Operator 2

600s 3

2400172-1 Impell ar Casti ngs B







15s 200s 350s 62s 401s

245s

190s 25s 33s 161s 191s

Operator 1 Operator3

0Subgroup 10 20

0

500

1000

Indi

vidua

l Value

10/98Month

1X=167.4

3.0SL=253.4

-3.0SL=81.44

99

0

100

200

300

400

500

600

Mov

ing

Rang

e

R=32.333.0SL=105.6

-3.0SL=0.00E+0

99

Liner Web Break Downtime (min) by Month 98

Type of Control (Fix, Minimize, Standardize,

Measure & Monitor, Communicate, Audit) Detailed Description of Control

Facility Affected (Gas, Electric, Water)

Setting or Tolerance Prior to Controls

Control Set Point or Range

Management Requirements or Organizational Changes

Date Implemented or Projected to be Implemented

Responsible Individual

Fix, Communicate, Audit Install or enable screen savers on all computers Electric Random implementationAll computers with screen

saversCommunicated at DRL meeting, part of

security audit April, 2002Jacovides, Director

Steve, Security

Standardize, AuditEstablish a Facilities Coordinator to be responsible for DRL

facilities needs Gas, Electric, Water No individual responsiblePersonal Business Plan and

Six Month Reviews Change in job description, PBP's May, 2002 John Biafora

Fix, MeasureReduce water flow through SEM by replumbing and installing chiller Water 5 gal/ min, continuous 0 gal /min Authorize chiller repair June, 2002

John Biafora, Chris Thrush

Fix, Measure Reduce water flow through vacuum chamber Water 2 gal/min, continuous 1 gal/min, as needed Authorize replumb June, 2002John Biafora, Chris

Thrush

Fix, Measure, Communicate Thermostat control of outgoing water on MTS unit Water 2.4 gal/min, continuous

Temperature control, now flow only when using

instrumentAuthorize purchase of temperature

sensor June, 2002John Biafora, Tom

Ellis

Fix, Measure Reduce flow through Hall Effect system Water 4 gal/min, continuous2.5 gal/min, unit on only

when doing measurementsAuthorize replumb, communicate need

to have flow only during usage June, 2002John Biafora,

Joseph Heremans

Fix, Measure Reduce flow through e-beam evaporator Water 8 gal/min, continuous 6 gal/min Authorize replumb June, 2002John Biafora, Chris Thrush

Fix, Measure Reduce flow through environmental test chamber Water 4 gal/min, continuous3 gal/min, flow only during

testing Authorize replumb June, 2002John Biafora,

Tom Ellis

Fix, Measure, Communicate Manual operation of exhaust hoods Gas, Electric 94 k ft^3/min continuous94 k ft^3/min 36% of total

time Placard June-July, 2002John Biafora, all lab

users

Fix, Measure, Communicate Adjust pre temperature air box per season Gas, ElectricRandom excursions in

temperature 65 - 72 F Authorize facilities study June-July, 2002John Biafora, Fred

Scott

Fix, Standardize, Communicate Turn off unused equipment at 7:00 PM Gas, Electric, Water None

Turn off specific exhaust and return air systems that

do not jeopardize safety requirements

Lab Director authorize and communicate at group meeting May, 2002

John Biafora and Jones Lange and

LaSalle representative

Standardize, Monitor, MeasureProgram controls of specific exhaust and return air units that can be shutdown from 6:00 p.m. to 6:00 a.m. Mon. - Fri. Gas, Electric None

Shutdown specific exhaust and return air units from 6:00 p.m. to 6:00 a.m. Lab Director authorize June-July, 2002

John Biafora and Jones Lange and

LaSalle representative

Fix, Standardize, Audit, Measure & Monitor

Curtail all non-essential power usage during peak electrical draw from the grid. Credit from electric supplier. Electric None

Call from Detroit Edison to implement power curtailment

Lab Director authorize and communicate at group meeting July-August, 2002 John Biafora

Have we met our goals?

Design of Experiments:

2.52.01.51.00.50.0

OTD

Sp Price

LT

Profile

Pareto Chart of the Standardized Effects(response is Var, Alpha = .10)

OTDLTSp PriceProf ile

YNPost LTPrior

LTYNTier 2Tier 1

170

140

110

80

50

Var

ANOVA:

Factor Type Levels ValuesCustomer Profile fixed 2 Tier 1 Tier 2Special Price fixed 2 N YLead Time fixed 2 Post LT Prior LTOn-Time Delivery fixed 2 N Y

Source DF SS MS F PCustomer Profile 1 473 473 0.04 0.845Special Price 1 40905 40905 3.45 0.090Lead Time 1 13053 13053 1.10 0.316On-Time Delivery 1 75488 75488 6.37 0.028Error 11 130267 11842Total 15 260186

Special Pricing and On-Time Delivery are Significant Sources of Price Variation in the Co-Op System

Price Variance = f(OTD, Sp Price, LT, Profile)

Design of Experiments

How do we optimize critical inputs?

What does the future work flow look like?

Control Strategies

How do we sustain the

gains?

Improve Control

Copyright 2005, AIT Group Inc. All rights reserved.


Lean Six Sigma Author

Steven Bonacorsi is a Senior Master Black Belt instructor and coach. He has trained hundreds of Master Black Belts, Black Belts, Green Belts, and Project Sponsors and Executive Leaders in Lean Six Sigma DMAIC and Design for Lean Six Sigma process improvement methodologies. Steven is a board member for the Boston Chapter of the Industry of Industrial Engineers. Full Bio: http://www.linkedin.com/in/stevenbonacorsi

Lean Six Sigma White Belt Certification:• Add Lean Six Sigma White Belt (Basic Awareness) Training and Certification to

your Resume or Job Skills. • Learn topics from one of the original Master Black Belts and world experts on

Value Stream Mapping, 5s, Process Capability, Deployment Planning, Roles and Responsibilities, FMEA Risk Analysis, Control Plans and more.

• Certificates will be signed for all who complete the 2 hour training session.

http://www.linkedin.com/in/stevenbonacorsi


Lean Six Sigma

Learn More about The AIT Group http://www.theaitgroup.com

Presenter

Presentation Notes

*************************************************** This Training Manual and all materials, procedures and systems herein contained or depicted (the "Manual"), are the sole and exclusive property of Advanced Integrated Technologies Group, Inc . The contents hereof contain proprietary trade secrets that are the private and confidential property of Advanced Integrated Technologies Group, Inc. Unauthorized use, disclosure, or reproduction of any kind of any material contained in this Manual is expressly prohibited. The contents hereof are to be returned immediately upon termination of any relationship or agreement giving user authorization to possess or use such information or materials. Any unauthorized or illegal use shall subject the user to all remedies, both legal and equitable, available to Advanced Integrated Technologies Group, Inc. This Manual may be altered, amended or supplemented by Advanced Integrated Technologies Group, Inc from time to time. In the event of any inconsistency or conflict between a provision in this Manual and any federal, provincial, state or local statute, regulation, order or other law, such law will supersede the conflicting or inconsistent provisions of this Manual in all properties subject to that law. *************************************************** © 2006 by Advanced Integrated Technologies Group, Inc. All Rights Reserved.


Lean Six Sigma Who is AIT?

• AIT is a premier provider of Lean, Six Sigma and Supply Chain solutions.

• Solutions are customized to the customer – not one size fits all.

• The company was started in 1998 by three individual that recognized extremely early in the industry how well Lean, Six Sigma and Supply Chain disciplines integrate.

• Our goal is the complete transfer of knowledge via client specific solutions – not training.

• Your instructors from AIT are Certified Master Black Belts and Lean Experts.

• We have worked with many different clients and some of the largest companies in the world.

• We have Offices in the US, Europe, Mexico and China.

Lean

Six Sigma

Supply ChainMgmt.

Value$

The AIT Group excels in implementation … not recommendation!The AIT Group excels in implementation … not recommendation!

The AIT Group is an international consulting firm that has been specifically designed to help

companies increase profitability by improving overall business performance and customer

satisfaction through the integrated application of:

www.theAITgroup.com

lean six sigma roadmap

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