Transcript Lean Six Sigma Management Orientation

Lean Six Sigma Management
Orientation
Linda Lyons –Director, Center for University Learning &
KSU’s Customer Service Champion
Victor Kane – KSU Associate Professor
Department of Mathematics and Statistics
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Orientation Overview
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Customer Service Initiative
What is Lean Six Sigma?
Origin of Lean Six Sigma
Employee Training
Project Essentials
Supervisor’s Role for Successful Projects
Process Improvement Organizational Model
Quality Awards Focused on Process Improvement
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Customer Service State Initiative
In 2006, Governor Sonny Perdue launched the
“Customer Service Improvement” initiative to assist
in achieving the goal of making Georgia the bestmanaged state in the country.
It was the Governor’s desire that this initiative serve
as both a catalyst and a vehicle to create a change in
our culture towards providing better customer
service across all areas of service in the state.
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The Governor’s initiative is anchored in five commitments to
our customers:
Helpful
Courteous
Accessible
Responsive
Knowledgeable
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• In coordination with the Governor's Customer Service Initiative,
Chancellor Davis mandated that every USG campus is to
implement a plan for improving customer service.
• Each institution has Customer Service Champion to
manage/promote the Governor’s initiative.
• Plans are developed each FY with identified units.
• Outline clear and measurable ways to track the campus'
progress toward improved customer service.
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BOR’S STRATEGIC PLAN: Goal Six: Increase efficiency,
working as a System
Challenge:
The USG will implement systematic process improvement efforts across the campuses
in order to promote effectiveness.
Action:
Establish a process improvement initiative
Activities for Implementation:
• Implement a Lean Six Sigma training program
• Implement process improvement efforts.
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KSU Customer Service Mission
Kennesaw State University is dedicated to providing top
customer service to our students and other KSU
constituents by diligently listening to our customers’
concerns, being proficient and knowledgeable in our
job duties, and demonstrating a willingness to go
above the customers’ expectations when addressing
customers’ issues and interests.
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KSU Customer Service Initiative
KSU-focused programs and activities include:
Customer Service Improvement Program - LSS
Customer Service Training/Certificate Program
Customer Service Council
Customer Service Inspector Program (CSI)
Shining Star Award Program
Chancellors/ Governors Award Program Nominations
Annual KSU Customer Service Recognition Luncheon
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KSU Unit Participation
The following units at Kennesaw have participated in the CS
Improvement Program:
The Office of Student Financial Aid – FY “07 “, “09”, “10”
Business Services and KSU Bookstore – FY “08”
Continuing Education – FY “09”
Plant Operations/ Facilities - FY “10”
Office of the Registrar - FY “10”
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KSU Awards/Recognitions
Chancellor’s
Service Awards
The
followingCustomer
units at Kennesaw
have participated in the CS
2007
Improvement Program:
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Outstanding Customer Service Institution of the Year
Outstanding Customer Service Leadership Gold Award – Linda Lyons
Outstanding Customer Service Improvement Gold Award – Coles College of Business
Outstanding Customer Service Improvement Silver Award – New Hires Online Project
The Office of Student Financial Aid – FY “07 “, “09”, “10”
2008
Business Services and KSU Bookstore – FY “08”
 Outstanding Customer Service Institution of the Year
Continuing
Education
– FY–“09”
 Joseph Greene Champion
of the Year Award
Linda Lyons
 Outstanding Customer Service Improvement Bronze Award – KSU Bookstore
Plant
Operations/
Facilities
FY –“10”
 Outstanding
Customer Service Individual
Bronze -Award
Dr. Charles Aust
 Outstanding Customer Service Team Bronze Award – Enrollment Services Communication Center
Office of the Registrar - FY “10”
2009
 Outstanding Customer Service Leadership Award - Honorable Mention – Kim West, KSU Registrar
 Outstanding Customer Service Team Gold Award – KSU’s Customer Service Council
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KSU Awards/Recognitions
Chancellor’s
Customer
Service
The
followingCommendation
units at Kennesaw
have participated
in the CS
Governor’s
forAwards
Customer
Service Excellence
2007
Improvement Program:
2008
 Outstanding Customer Service Institution of the Year
 Outstanding
Service Leadership Gold Award – Linda Lyons
KennesawCustomer
State University
 Outstanding Customer Service Improvement Gold Award – Coles College of Business
 Linda Lyons, Director, Center for University Learning
 Outstanding Customer Service Improvement Silver Award – New Hires Online Project
The Office of Student Financial Aid – FY “07 “, “09”, “10”
 The Office of Student Financial Aid
2008
Business Services and KSU Bookstore – FY “08”
 Outstanding Customer Service Institution of the Year
Continuing
Education
– FY–“09”
 Joseph Greene Champion
of the Year Award
Linda Lyons
2009
 Outstanding Customer Service Improvement Bronze Award – KSU Bookstore
Linda Lyons,
,Director,
for
University
Learning
Plant
Operations/
Facilities
-Award
FY –“10”
 Outstanding
Customer
ServiceCenter
Individual
Bronze
Dr.
Charles Aust
 Outstanding
Customer
ServiceDirector
Team Bronze
Award – Enrollment
Services Communication Center
Dr. Theresa
Johnston,
Office
of the
Registrar
- of
FYCollegiate
“10” Recovery Center
2009
 Outstanding Customer Service Leadership Award - Honorable Mention – Kim West, KSU Registrar
2010
 Outstanding Customer Service Team Gold Award – KSU’s Customer Service Council
 Dr. Michael Sanseviro, Interim Dean, Student Success and Director of Residence Life
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QUESTIONS?
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What is Lean Six Sigma?
• Definition – Lean Six Sigma is an improvement
methodology for reducing cost through
improving products and services related to
customer satisfaction.
• Observation – the methodology used in Lean
Six Sigma is not new, but a disciplined
evolution of approaches used in Quality
Control during the 20th century.
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Why Consider Lean Six Sigma?
• Jack Welch – CEO GE (1981-2001)
http://www.youtube.com/watch?v=aNMULFcLuIM
“I see a Six Sigma company as a company whose
management understands that variation is evil….”
• Ewy and Gmitro (2009) “Process Management
in Education”
http://www.asq.org/quality-press/display-item/index.pl?item=E1352
“Six Sigma is a process improvement methodology used by
process managers to create breakthrough improvements.”
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Origin of Lean Six Sigma
Start
Year Author(s)
1920s Shewhart
1926+
Juran
1947+
Deming
1949
Ohno
1950+
Taguchi
Label
SPC
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Points
TPS
Robust
Design
1950
JUSE
Deming
Prize
1951 Figenbaum TQC
Six Sigma Tool/Process
Unique Characteristics
Process Monitoring by Statistical Process Control
Top management is responsible for quality, improvement
projects, Pareto principle, etc.
Many lectures in Japan addressing: 1) management
responsibility 2) understanding variation
Toyota Production System (forerunner of Lean); uses
Kaizen teams, JIT inventory, flows, waste elimination &
cycle time reduction
Developed methods to make product and process designs
more robust to outside influences.
Award for best quality companies; Administered by
Japanese Union of Scientists and Engineers
Total Quality Control: uses company-wide approach of
methods from Deming, Juran, Cosby & Ishikawa
Lean Six Sigma Tools/Process
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Six Sigma Begins
Start
Year
1962
Author(s)
Ishikawa
1979
Crosby
1980
NBC
White
Paper
1984
U.S. Navy
TQM
1987
Bill Smith
Six
Sigma
Label
QC
Circles
Unique Characteristics
Quality Control Circles in Japan – employee groups
working on improvements using 7 statistical tools
Quality is Free book established concepts zero
defects goal & cost of nonconformance is large
Television documentary “If Japan Can, Why Can’t
We?” featured Deming and launched American
quality revolution. Many Deming lectures followed.
http://www.youtube.com/watch?v=GHvnIm9UEoQ
Total Quality Management company-wide approach
to quality: uses Deming, Juran, Crosby & Ishikawa
ideas. Based on many TQC principles.
http://www.youtube.com/watch?v=Pd_uRGy5RKY
Motorola CEO Bob Galvin launches Six Sigma
program. DMAIC problem solving addressing
defects and variability using projects involving small
teams focusing on internal processes
http://www.youtube.com/watch?v=UxCeeUqrfs4
Video Links:
1) http://www.youtube.com/watch?v=GHvnIm9UEoQ
2) http://www.youtube.com/watch?v=Pd_uRGy5RKY
3) http://www.youtube.com/watch?v=UxCeeUqrfs4
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Lean Six Sigma Begins
Start
Year
1988
1988
Author(s)
Label
Krafcik
Lean
1993
1996
Mid
1990+
Lean
Six
Sigma
1999
2001
NIST
U. of WI
Stout
2005
Richland
College
Unique Characteristics
Motorola wins MBNQA
Sloan article “Triumph of the Lean Production System” based on
TPS principles.
http://www.youtube.com/watch?v=PQspf3q12mo
Allied Signal (Honeywell) CEO Larry Bossidy launches SS program
GE CEO Jack Welch launches SS program
Companies such as Allied Signal and Maytag combined two
improvement approaches TPS and Six Sigma.
MBNQA added Education and Health Care categories
Wins MBNQA in Education Category, graduate (8,000 students)
http://www.baldrige.nist.gov/PDF_files/UWStout_Application_S
ummary.pdf
Wins MBNQA in Education Category, 2 year (3500 students)
http://www.baldrige.nist.gov/PDF_files/Richland_College_Applic
ation_Summary.pdf
Links:
1) http://www.youtube.com/watch?v=PQspf3q12mo
2) http://www.baldrige.nist.gov/PDF_files/UWStout_Application_Summary.pdf
3) http://www.baldrige.nist.gov/PDF_files/Richland_College_Application_Summary.pdf
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Key Elements of Lean Six Sigma
1)
2)
3)
4)
Cost and Service Improvement Focus
Process Based Analysis with DMAIC
Project Based Organization
Team Oriented with Employee Training Levels
• White, Yellow, Green, Black Belt
• Master Black Belt, Champion
4) Data Driven with Key Measures Defined
5) Customer Satisfaction Measures
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Key Lean Six Sigma Tools
1) DMAIC Problem Solving Process
Define→Measure⇄Analyze→Improve→Control
2)
3)
4)
5)
6)
7)
Data Analysis (7 basic statistical tools)
Process Mapping with Flows of Everything
Process Monitoring and Capability
Team Discussion Methods (7 team tools)
Many Statistical Methods
Lean flow and Cycle Time Focus
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Six Sigma Assumptions
• All work is accomplished using a process.
• Every process has inputs (X’s) with outputs
(Y’s) which relate to customer satisfaction.
• Every process has value-added activities that
transform X’s to Y’s. The goal of a project is to
discover the critical X’s and optimize them to
obtain the best level of Y’s.
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Process Flowchart Basics
• Six Sigma principle: All work in an organization is performed in
a process. See video: http://www.youtube.com/watch?v=J6Aqg7CKRa8
• Consequence: After defining targeted measures to improve,
the first step in improvement is detailed definition of
processes.
Step 1
Correct
?
Y M
Value-Added
Activity - 1
Start
M
M
Rework
Value-Added
Activity – 2A
M
Outputs
M
Customer
Use
Inputs
Data or Information
M=Measures
Process performance metrics
Counts, times, measures
Alternate
Path
End
Value-Added
Activity – 2B
M
M
Customer
Satisfaction
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Process Map Example
Purchase Balsa
Airplane
Find Possible
Sources of
Different Brand of
Balsa Airplanes
Unwrap package without
damaging any part.
Inventory Parts
per Instructions or
Self-Developed
Checklist
N
All Parts Present?
Y
Checklist
of Parts
X1
=Fuselage
Weight
KIV
CTQ Variables in Bold
Assemble Tail
Wing and Rudder
Assemble Main
Wing
KIV's
X2=Main Wing
Center Position
X3=Tail Wing
Center Position
X4=Distance
from Nose to
Front of Main
Wing
X5=Total
Assembled Weight
N
Test Flight ok?
Y
Measure
Y1=Distance
Y2=Time
End
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Common Six Sigma Metrics
1)
2)
3)
4)
5)
6)
Defects per Time Period ( Items not correct the first time)
First Time Through - % of products/services with no changes,
adjustments, etc.
Rework - % of units in that require some change
Cycle Time – time required to complete a process
Wait Time – time customer waits for service
Yield – number units entering process versus number exiting
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Lean Six Sigma Improvement
Strategies
1) Defect Focus – what is not done right the first time?
2) Process Definition Analysis and Simplification
3) Find and Optimize Process Key Measures that
impact defects & customer satisfaction. Reduce
variation. Cost improvement is an outcome.
4) Rationalize Flows of Material & Information (Lean)
5) Standardize Work Methods (Lean)
6) Error Proof Process Steps
7) Benchmark Similar Processes
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KSU Training for CSI
• White Belt (6 hours)
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
Identifying Improvement Opportunities
Using Lean Six Sigma (DMAIC)
Variability Reduction
Identifying Customers
Teamwork Essentials
• Yellow Belt (18 hours)
 Business Process Reengineering
 DMAIC Phases
 Simple Statistical Tools
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CSI Learning to Date
• Defining a useful project is the most important step
in DMAIC.
• A process map can be difficult when processes are
not systematically defined.
• Data in a usable form is usually not available on how
a process is performing.
• Trained personnel cannot work in a vacuum and be
successful. They will need team member support.
• Periodic supervisor updates are motivating.
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Project Essentials
• Define is the first step in DMAIC. This is the most difficult
phase. It is said that a “Well defined problem is half solved”.
• To assist in project definition a Project Charter can be used.
Template:
http://www.6sigma.us/user/Six%20Sigma%20Project%20Charter%20Template%20v1.doc
•
Key elements to start a project definition:
1)
2)
3)
4)
5)
Practical problem description and measures
Objective – What does success look like?
Scope with organizational boundaries
Time commitment authorized for each team member
Schedule for updates
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Supervisory Roles
1) Select Right People for Training
2) Identify Area Needing Improvement
3) Brainstorm Key Measures (e.g., processing
time, rework time, number of complaints/calls,
etc.)
4) Review Team Membership to Ensure Needed
Skills and Interfaces are Represented.
5) Set Boundaries for Project Activity
6) Brainstorm Benchmarking Opportunities
7) Meet with Team Periodically
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Organizational Perspective
• What is the “Big Picture”?
• What are interrelationships?
Process Management
Improvement System – DMAIC
Team-Based Improvement Strategy
Data Based Key Measures
Customer Focus, etc.
• Is there a model to represent how the entire
organization might function?
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Criteria Framework: A Systems Perspective
Organizational Profile:
Environment, Relationships, and Challenges
2
Strategic
Planning
5 Human
Resource
Focus
7
Organizational
Results
1
Leadership
3
Customer
and Market
Focus
6
Process
Management
4
Measurement, Analysis, and Knowledge Management
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Historical Perspective
o Baldrige established in 1987 to recognize U.S.
organizations for quality and performance achievements
o Established as a diagnostic tool for self- and third-party
assessments
o 70+ nations have Baldrige-based award processes
o 40 states have Baldrige-based award processes
o Initial focus was on the manufacturing industry
o Currently many sectors: business, industry, government,
EDUCATION, healthcare, and nonprofit
o Video: http://www.baldrige.nist.gov/Video/Getting_Results/index.html
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Baldrige Education Winners
• Baldrige has adapted Performance Criteria to
education.
http://www.quality.nist.gov/Education_Criteria.htm
• U. Of Wisconsin – Stout : Wins MBNQA (2001) ,
graduate (8,000 students)
http://www.baldrige.nist.gov/PDF_files/UWStout_Application_Summary.pdf
• Richland College – Dallas, Texas: Wins MBNQA
(2005), 2 year (3500 students)
http://www.baldrige.nist.gov/PDF_files/Richland_College_Application_Summary.pdf
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Baldrige and Lean Six Sigma
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Baldrige Validated Criteria- 89 Questions
Some Validation Evidence
•
•
•
•
•
•
•
Benefits compared to social cost exceed 207:1 - A. N. Link and J.T. Scott (2006) , “An Economic
Evaluation of the Baldrige National Quality Program,” Economics of Innovation and New Technology, 15,
83-100.
Award winners significantly outperformed control group (38-46%) – K. B. Hendricks and V. R.
Singhal (2001), “The Long-Run Stock Price Performance of Firms with Effective TQM Programs,”
Management Sciences, 47, 359-368.
Award winners outperformed control group on operating income (48%) - K. B. Hendricks and V.
R. Singhal (1997), “Does Implementing an Effective TQM Program Actually Improve Operating
Performance? …,” Management Sciences, 43, 1258-1274.
Baldrige winners were better than control group by a factor of 2 on key financial measures.K. B. Hendricks and V. R. Singhal (1999), “The Financial Rewards from TQM,” American Ceramic Society
Bulletin, 78, 89-93.
TQM and superior financial results were found to covary. K. M. York and C. E. Miree (2004),
“Causation or Covariation: an Empirical Re-examination of the Link Between TQM and Financial
Performance,” Journal of Operations Management 22 (2004) 291–311
1994-2003 award recipients underperformed S&P 500 by -18% to +36% from announcement date to
December 2004. MBNQA Website.
Up to 2001 Award winners beat S&P 500 returns by 300-600% (8 years), This trend was reversed in 2002
and 2003, the last years studied. http://baldrige.nist.gov/Stock_Studies.htm.
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Summary – Performance Excellence and
Lean Six Sigma
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Jim Collins in Good to Great (2001) analyzes 11 great companies selected based on
stock performance. His team found 6 concepts that made them unique. One
concept “a culture of discipline” describes several Baldrige/TQM-like
characteristics.
Clearly, there is no agreement on everything organizations should do to achieve
Greatness or Performance Excellence.
Criteria have slight annual changes to reflect best practices. Inputs vary
- Enron Scandal (2001): Ethical Behavior in Leadership
- Hurricane Katrina (2005): Disaster Planning
Some common themes related to Lean Six Sigma in most approaches are:
- Customer Focused Products and Services
- Process Model for Value-Added Work Activity
- Continuous Improvement of Processes
- Data-Based Decision Making
Lean Six Sigma is a useful approach that supports most models for superior
organizational performance.
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What is Georgia Oglethorpe
Award Process, Inc.?
• Public-private partnership (1997)
Mission –
Leading Georgia’s Organizations to
Improve Performance
Vision –
Georgia Outperforming the World!
• Modeled after the Malcolm Baldrige National
Quality Award Criteria and Award Process
http://www.georgiaoglethorpe.org/
Three Step
Process
Baldrige Award
(For those eligible.)
Maturity and
Recognition
Options
Georgia
Focus
Recognition
Step 1
Georgia
Progress
Award
Georgia
Oglethorpe
Award
Step 3
Step 2
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Thank You!!
May your processes be productive
and satisfy your customers….
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