Transcript Using Lean Six Sigma to Reduce Costs and Improve Process

Using Lean Six Sigma to
Reduce Costs and Improve Process Performance
Ronald D. Snee
ASQ Philadelphia Section
Six Sigma Panel Discussion
January 21, 2009
© 2008 All rights reserved. No part of this document may be redistributed or reproduced in any form or by any means, without the prior written permission from Tunnell Consulting, Inc.
What is Six Sigma?
 Business Strategy and Methodology that increases
process performance resulting in:
 Enhanced customer satisfaction and
 Improved bottom line results ($$)
 Leadership Development Tool:
"Perhaps the biggest but most unheralded benefit of Six
Sigma is its capacity to develop a cadre of great leaders”
– Jack Welch
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Key Aspects of Improvement
Deployment
 Improvement
 Breakthrough
 Systematic,
Focused Approach
 Right People:
 Selected &Trained
 Results:
 Process &
Financial ($$)
 Communication
 Recognition and
Reward
 Six Sigma Initiative
Reviews
Projects
 Right Projects:
 Linked to Business
Goals
 Project Portfolio
Management
 Projects:
 Execution
 Reviews
 Closure
 Sustain the Gains:
 New Projects




Methods and Tools
Process Thinking
Process Variation
Facts, Figures, Data
Define, Measure, Analyze,
Improve, Control
 8 Key Tools:
 Sequenced and Linked
 Statistical Tools
 Statistical Software
 Critical Few Variables
 Project Tracking and
Reporting
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Improvement Project Leaders
Management
Team
Improvement
Master(MBB)
Functional Groups
HR, Finance, IT
Eng, QA, etc.
Project
Champion
Team Leader
(BB/GB)
And Team
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Schematic of a Process and Its Variables
CONTROLLED
VARIABLES
PROCESS
INPUTS
THE PROCESS
UNCONTROLLED
NOISE
VARIABLES
PROCESS
OUTPUTS
CUSTOMER
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Tableting Process and Its Variables
Process Variables




Blending Time and Temperature
Compression Speed and Force
Coating Air Temperature and Moisture
Water Addition
API
Blend
Compress
Coat
Package
Excipients
Dissolution
Content
Uniformity
Yield
Waste
Environmental Variables





Ambient Temperature and Humidity
Blending and Compression Rooms
Raw Material Lot
Operators
Equipment
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Finding the Critical Few Variables
Process
Inputs
Controlled
Variables
Uncontrolled
Variables
Measure
Analyze
Improve
Control
Critical Few Variables
Process Control and Optimization
Are Enhanced
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Tableting Process and Its Variables
Process Variables (Xs)




Blending Time and Temperature
Compression Speed and Force
Coating Air Temperature and Moisture
Water Addition
Y = f (X)
Process Outputs (Ys)
Process Inputs (Xs)
API
Blend
Compress
Coat
Package
Excipients
Dissolution
Content
Uniformity
Yield
Waste
Environmental Variables (Xs)





Ambient Temperature and Humidity
Blending and Compression Rooms
Raw Material Lot
Operators
Equipment
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DMAIC Process Improvement Framework
Sense
of
Urgency
Six Sigma
Tools
Data
Results ($$)
Control
Improve
Analyze
Measure
Define
Leadership
Teamwork
Stakeholder Building
Project Management
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Key Improvement Tools
Tool
Define
Measure
Analyze
Improve
Control
Project Charter
Maps
Cause and Effect
Matrix
Capability
Analysis
Gage R&R
Failure Modes &
Effects Analysis
Multi-Vari Studies
Design of
Experiments
Control Plans and
SPC
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Lean Manufacturing
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Lean Manufacturing
 Lean is a documentation of the key attributes
of the Toyota Production System
 Set of principles for efficient operations
 Set of tools
 Focus is on:
 Process improvement by
reducing waste and cycle time
 Improving process flow
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Value Stream Map Can Help Identify
Key Areas to Target for Improvement
Building 5
2-3 day
lead time
Building 2
Planning
18 month
rolling forecast
Provide 3 week
projections to Mfg
email
Cycle Time
Total = 289 hrs
VA = 29 hours
Manufacturing
Daily Schedules
BPX
300mg
PHILI
Average #
of Lots per
month
= 200
Daily Ship
Schedule
Planning
Setup
4-5
days
Batch
Record
Review
WAREHOUSE
WEIGHING
468Kg
Time spent
in Bldg 2
warehouse
= 4hrs 40
mins
4 hrs 40 mins
468Kg
II
BLENDING
464.7Kg
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COMPRESSION
I
COATING
457.74 Kg
454.4Kg
Yield = 100%
Yield = 99%
Yield = 98%
Yield = 99%
Setup = 60 mins
Setup = 150 mins
Setup = 290 mins
Setup = 195 mins
Wghing = 180 min
VA = 9 hrs
VA = 8 hrs 10 mins
VA = 705 mins
1 Shift
1 Shift
1 Shift
2 Shifts
2 operators
2 operators
2 operators
2 operators
4 hours
65 hours
11.5 hrs
44 hours
13 hours
II
6 hours
15 hours
MBR REVIEW
3
days
Number of
reviews = 5
Average
Days = 5-11
I
10 hours
68 hours
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Lean Principles





Specify value by specific product
Identify the value stream for each product
Make value flow without interruptions
Let the customer pull value from the product
Pursue perfection
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Types of Waste
 Overproduction:
 More than is needed and higher quality than is needed
 Waiting (hang time) for machines, operators, raw
materials, etc.
 Transportation of materials:
 Wasted time due to unneeded product and material
movement
 Process inefficiencies and waste:
 Inspection, NVA Work, duplication of effort
 Stock on hand (Inventory):
 Work in progress and finished product used to cover for
process problems
 Motion:
 Unnecessary movement, multiple handoffs, continually
searching for materials, tools, supplies, etc.
 Defects:
 Rework, missing information, not meeting specs
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Key Lean Tools
 Process Mapping
 Value Stream
 Spaghetti
 Kaizen Event
 5S (Sort, Store,
Shine, Standardize,
Sustain)
 Mistake Proofing
 Standard Work




Work Cell Design
Line Balancing
Videotaping
Rapid Changeover:
 Single Minute
Exchange of Dies
(SMED)
 Kanban (just in time)
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Improvement Objectives
Six Sigma Objectives
 Shift Process Average
 Reduce Process
Variation
 Robust Products and
Processes
Lean Objectives
Reduce:
 Waste
 Non-Value
Added Work
 Cycle Time
 Improve
Process Flow
 Reduce Process
Complexity
Lean Six Sigma Improves Quality, Cost, and Delivery
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There are Opportunities Both
Within and Between Process Steps
A Three Step Process
Lean
Material and
Information
Flow BETWEEN
Process Steps
Step A
Step B
Step C
Six Sigma
Value-Adding
Transformations
Occur WITHIN
Process Steps
Customer
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Some Improvement Projects
Process
Project
Impact
Value
Batch
Record
Review
Reduce Cycle
Time 35-55%
Inventory reduced $5MM
Costs reduced $200k/yr
Improve Yield
Yield Improved
25%
Market Demand Met
Process
Validated
Product Launched After
Many Year Delay
Tablet
Manuf
Reduce
Defective
Batch Rate
Batch Defect
Rate Reduced
Savings $750k/yr
Tablet
Manuf
Improve
Coater
Reliability
Process
Interruptions
Reduced 67%
Savings $1.7MM/yr
BioPharm
BioPharm
Solid
Improve
Dose Manuf
Quality
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References
Snee, R. D. (2001) “Focus on Improvement, Not Training”,
Quality Management Forum, Spring 2001, 7,8,16.
Snee, R. D. and R. W. Hoerl (2007) “Integrating Lean and
Six Sigma – A Holistic Approach”, Six Sigma Forum
Magazine, May 2007, 15-21.
Snee, R. D. and R. W. Hoerl (2003) Leading Six Sigma – A
Step-by-Step Guide Based on Experience with GE and
Other Six Sigma Companies, Financial Times Prentice
Hall, New York, NY. Chapters 3-4.
Snee, R. D. and R. W. Hoerl (2005) Six Sigma Beyond the
Factory Floor – Deployment Strategies for Financial
Services, Health Care, and the Rest of the Real
Economy, Financial Times Prentice Hall, New York, NY.
Chapters 3-4.
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For Further Information, Please Contact:
Ronald D. Snee, PhD
(610) 213-5595
[email protected]
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