The Lean Enterprise Vital Links: Lean, Six Sigma and Change Management Lean Foundations Continuous Improvement Training Lean Foundations Continuous Improvement

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  • Slide 1
  • The Lean Enterprise Vital Links: Lean, Six Sigma and Change Management Lean Foundations Continuous Improvement Training Lean Foundations Continuous Improvement Training
  • Slide 2
  • Explore the component parts of a Continuous Improvement Process (CIP) and how Six Sigma, Change Management and Lean methodologies work together within the DMAIC problem solving process. Examine the importance, benefits and integration of Lean Thinking to help achieve Company objectives and operational strategies. Explain the need for providing more detailed Lean tools. Provide additional resources for self study. Learning Objectives Learning Objectives
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  • N:N: (Need) Need for Improvement Achieve Process Excellence Address Process Summary Analysis ( Most operations exhibit 15% - 30% waste ! ) Differentiate brand/ market/ service/ value (i.e. John Crane, Wal-Mart, Maytag, Costco ) Economic Benefits ( reduce costs ) Enhance Safety, Improve Quality Speed to Market (Total Cycle Time reduction) Employee Satisfaction Customer Delight ! What is the Importance of doing better (CIP)?
  • Slide 4
  • - Ability to attain Better Caliber, High Profit Customers - Identification of Shining Stars within the Organization - Less Safety related Incidents, Accidents and Downtime - Through Safer Operations and incorporation of workplace organization (6S) a Reduction of Liability Insurance Premiums FY20xx (5% to 15%) - Reduction of COPQ - rework and scrap (labor and material savings and associated benefits) - Trained Team Leaders: 6S, Green/ Lean Belts, Black Belts - Generation of Mistake Proofing Ideas/ Processes - Realization of $15,000 to $150,000 (or more) cost savings per Black Belt/ Green/ Lean Belt project What are some more benefits?
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  • - Better response to ever increasing Customer Demands - Shorter Lead times, Less Inventory - Less Debt/ reduced carrying charges/ COGS - Continually decreasing Set-up times (increased capacity) - More floor space for production - Better reliability, maintainability and utilization of equipment - Longer equipment life - Reduction of Supply Partners and reduction in associated SCM administrative costs - More satisfied employees - Less tardiness, absenteeism, turnover What are some more benefits?
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  • $ Quality Lean Change Management Metrics focused on results important to the customer and with the highest potential for adding hard dollars to the bottom line Disciplined systematic approach designed to maximize results Safety and 5S together: Integrated and aligned people and processes What are some developmental elements? What are some developmental elements? Speed Project Reviews (DMAIC) 6S Project Leaders Executive Sponsorship Lean Belts Green Belts Prevention is the Key Safety First ! Proactive Workforce CAP Safety Trained Champions
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  • Six Sigma Lean Quality Cost Delivery What are the 3 components comprising CIP? S y First Pass Yield Space Inventory Process Product Capacity Lead Time Setup Process Labor Throughput Travel (Material) Delay In-Process Storage PPM COPQ Setup Labor Kanban Voice of the Customer Policy Deployment/ SOX / ISO Visual Management Supplier Quality Process Capability SOPs/Standard Work Product Assurance (SPC, RCCA) Communication Team Dynamics Turnover Rate Cellularization One Piece Flow Manpower Setup SOPs/ SMED Maintenance SOPs (TPM) Cell Cleanliness (6S) Total Employee Involvement (TEI) Measurement Systems Change Management Process Excellence IPO
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  • How do the 3 components come together? Six Sigma Methodology for reducing variation and driving solutions of any existing process (using data with graphical and statistical analysis) Six Sigma / Change Management/ Lean L-I-N-K When done in concert - powerful combination Six Sigma / Change Management/ Lean L-I-N-K When done in concert - powerful combination Change Management Methodology for assuring that change is sustained within organization The Lean Enterprise (including 6S) Methodology (philosophy and rich tool set) that is particularly focused on identifying and eliminating waste and improving workflows Yield, Cycle Time, Re-Work Positively affecting the Continuous Improvement culture WIP, Lead Time, Waste & Wasted Motions
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  • What is the presentation ratio of Topics/ Subject Matter within typical CIP training? (% material content) Six Sigma (40%) Lean (40%) Change Management (20%) Project Management, Facilitation/ Communication/ Presentation Skills, Report Writing and use of statistical software packages: i.e. Excel, Mini-Tab Other subjects touched on: Green Belt, 2 weeks Black Belt, 4 weeks
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  • What are some CIP training topics? (A sampling of techniques/ tools taught) Addressed in typical GB/ BB curriculum: Others addressed in Lean Enterprise modules only: (single point lessons, more detailed) TPM Quick Change-over Kanban Value Stream Mapping Visual Management Standard Work 6S Kaizen Takt Time Mistake Proofing Process Mapping Project Charter Decision Making XY Matrix Process Capability SPC/ FMEA/ DoE etc Change Management Some topics are addressed in both:
  • Slide 11
  • What is Six Sigma about? Six Sigma - Measure defects in a process and (with rigor and discipline) systematically figure out ways to reduce them to zero. Puts practical tools to work to reduce variation at all levels achieving tangible results of cost savings, employee, customer and stakeholder satisfaction.
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  • Quantify Define Quantify Define Measure Analyze Improve Control What is the DISCIPLINE of Six Sigma? Project Selection Team Formation Identify CTXs Y Project Selection Team Formation Identify CTXs Y Define Process Capability Validate Measurement System Define Process Capability Validate Measurement System Define Defects Baseline Set Goals Identify xs Define Defects Baseline Set Goals Identify xs Find and Confirm vital few xs Pilot Solution Y = f (x) Find and Confirm vital few xs Pilot Solution Y = f (x) Ensure Solution is Sustainable Ensure Solution is Sustainable
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  • What is the focus of Six Sigma? Variation reduction: Six Sigma attacks process variation Six Sigma creates capable and predictable processes Six Sigma is about measuring and improving how close we come to delivering on what we planned to do
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  • Process Map X - Y Matrix Measurement System Analysis Capability Analysis Descriptive Statistics Graphical Techniques Box Plots Histograms Scatter plots Time Series Plots Run Charts Pareto Charts Check Sheets Analysis of Variance Correlation Regression Inferential Statistics Central Limit theorem Confidence Intervals Failure Modes and Effects Analysis Multi - vari Studies Design of Experiments Fractional Experiments Full Experiments Response Surface Methods Analysis of Means Transformations Sample Size Selection Fishbone Diagrams Hypothesis Testing F - test. T - test Chi - square test Tests for Normality Tests for Equal Variances SPC Charts Control Plans DFSS Statistical Tolerancing What are some Six Sigma Tools?
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  • What is Change Management about? Change Management - Change acceleration is a process to ease acceptance of new ideas. Effective Change Management assures that improvement initiatives remain in force and that organizations dont revert back to the old ways (methods). Ensures that process and system improvements are permanent, gains are realized, proven effective and continuously improved.
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  • What is the Change Acceleration Process? Leading Change Changing Systems & Structures Share Need Shape Vision Get Buy-in Make it last Monitor Progress Current StateTransition StateImproved State
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  • What are the steps for Managing Change? Leading Change Give people someone to follow by you and your Champions actions. Shared Need Create an imperative to act now. Pass this on to others. Shape Vision Be precise about what you want to achieve and and make sure it is widely understood and shared. Get Buy-in You must involve people and pass on your enthusiasm so that once you start another project the change is sustained.
  • Slide 18
  • Steps for Change (Cont.) Make it Last Ensure that all influences to confound or support change are controlled. Monitor Progress Ensure that you are measuring effect not effort. Further publish progress Finally: Changing Systems and Structures Making sure that management practices (Staffing, development, rewards, measures, communication and organizational design) are used to compliment and reinforce change.
  • Slide 19
  • What are the elements to making change last? Understanding Clear path forward Clear Continuous Communication Motivation/ energy Ability to adjust Reflection/ integration Ongoing support/ commitment Making change last Leading Change Changing systems & structures
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  • What is Lean about ? The Lean Enterprise - Identify and eliminate Waste (Muda) and Wasteful Practices Providing value in the eyes of the customer any part of the process for which the customer is willing to pay. Value added activities would be those involved in producing and delivering goods and services.
  • Slide 21
  • Define Measure Analyze Improve Control What is the Alignment of Lean w/ DMAIC 6S activities Inventory Accuracy Takt Time Value Stream Analysis Line Balance Standardized Operations/ Standard Work Set-up Reduction Visual Management/ Control Kanban/ POU TPM Poka-Yoke Lean Approaches Align with D-M-A-I-C
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  • How does Lean fit under D/M A I(*m) C ? How does Lean fit under D/M A I(*m) C ? Measure I.D. Waste, CTXs, Cost Savings Define Business Case Lean Assessment Business Case Lean Assessment Analyze Scope Relevant Improvement Opportunities I.D. Project Areas/Teams Scope Relevant Improvement Opportunities I.D. Project Areas/Teams Improve Control Estimate New Capability Mistake Proof Estimate New Capability Mistake Proof Particularly Applicable to Agile Manufacturing Pilot / Assess Impact (*measure) Institutionalize Define
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  • What is the focus of Lean? Identification and elimination of waste Lean creates value by eliminating waste and aligning processes Lean creates standardized processes A means of revealing other projects which may require DMAIC problem-solving methodologies
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  • What are some Lean Tools? One piece flow Pull production system Level loading production Cycle time reduction/ Set-up reduction Aligning processes to customer demand (Takt-Time) Mistake proofing Elimination of the 7 elements of waste Visual Management/ Visual Control 6S (5s + safety) Value vs. Non-value added activities Kaizen Activities Best Practice Sharing
  • Slide 25
  • Measure Analyze Improve Control Define incorporate DMAIC? Do all methodologies incorporate DMAIC? Six Sigma (GB, BB, MBB project applications) Yes ! time between phases may vary however. Lean 6S Workplace organization Rapid Implementation of Solution Problem Solving/ Root Cause and Corrective Action VARIATION WASTE
  • Slide 26
  • Why the Need for additional Lean material? Operate in a higher standard of HS&E requirements. (Safety) Produce product and deliver services (processes) with Six Sigma capability. (Quality) Produce in smaller quantities with faster delivery turnarounds. (Speed of execution) Changing business climate Changing business climate Increased expectations of performance: Increased expectations of performance:
  • Slide 27
  • When would a team use The Lean Enterprise information (modules)? To strengthen already existing CIP vision, strategies, methodologies, projects __________________________________________________________________ Lean Enterprise (LE) is an additional set of foundational tools and techniques that teams utilize to identify and eliminate waste and wasteful practices. They were developed to be self-taught (facilitated) by a Black Belt. Adapting LE creates standardized processes A means of revealing other projects which may require DMAIC problem-solving methodologies
  • Slide 28
  • How does adopting Lean Thinking fit into our Business Strategy? Lean application opportunities are identified through baseline assessment efforts (e.g. CIP assessments, Quality audits, Internal audits, SOX, ISO audits et al) Lean enhances understanding of current operating conditions, and through Value Stream Analysis, helps determine the areas and sequencing of improvement initiatives With its Process Analysis mindset - The Lean Enterprise, as part of CIP - integrates the strategic Corporate strategies around Process Excellence, Organizational Capability and Organic Growth
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  • How does adopting The Lean Enterprise principles help the Company? Lean Enterprise (LE) emphasizes prevention of waste: any extra time, labor or material spent producing a product or service that doesnt add value to it. LE can help reduce costs, achieve just-in-time delivery, and shorten lead times. LE allows production of a wide variety of products and services, efficient and rapid changeover, efficient response to fluctuating demand, and increased quality.
  • Slide 30
  • How does The Lean Enterprise help our Customers? Lean Thinking facilitates streamlining the front end of the business with transactional Kaizen events and frictionless e-business We add value to customer relationships through customer-focused process improvement and joining in our customers process improvement initiatives
  • Slide 31
  • How does The Lean Enterprise help our Customers? Through CIP (Lean, Six Sigma, Change Management), we strive to deliver the right product, at the right time, at the right price, with perfect quality every time. We use on-time delivery, lead time and quality metrics to measure our performance
  • Slide 32
  • How does The Lean Enterprise help our Suppliers? Developed to transform key suppliers into our long-term partners and leverage their capability ___________________________ Going Lean creates standardized processes. Many of our businesses represent a scorecard to supply partners measuring their quality, on-time delivery, and other metrics Increased supplier communication pays off...


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