Transcript Introduction to Lean and Six Sigma

Intro
Introduction to the Tools of Lean
and Six Sigma (“LSS”)
Yellow Belt Training
Building new skills to improve quality and management practices across HBD
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What You Should Learn Today
Intro
• How We Will Teach
• What is Lean Six Sigma?
• Key Aspects of Lean and Six Sigma Improvement Methodologies
• Overview of HBD’s Lean Six Sigma Implementation
• Prior Projects’ Areas of Focus
• DMAIC Methodology Overview
• Tools to be Learned as a Yellow Belt
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How We Will Teach
Intro
• Focus for Approx. 60 Minutes in Class
• Deliver Pre-Class Reading Materials (“Pre-Work”)
• Introduce Key Concepts for Recognition and Everyday Usage
• Provide Real-life Examples and Opportunities for Discussion
• Encourage Participation by All
• Quiz Students to Encourage Learning and Memory Recall
• Ask for Immediate Feedback and Benefits & Concerns (“B’s & C’s”)
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Why Teach Me This Stuff?
Intro
• Culture is common thinking.
• Thinking drives behavior.
• Behavior drives results.
• Results create opportunities and security.
The Lean Six Sigma curriculum combines the discipline and
analytical tools of Six Sigma with the time-based focus of Lean. Our
goal is to build and enhance skills among employees that can
improve quality and strengthen management practices across HBD.
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Why Teach Me This Stuff? (con’t)
Intro
• The tools and methodologies in Lean Six Sigma are useful not
only in LSS projects, but in everyday tasks. These include:
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Understanding Customer and Stakeholder Needs
Identifying, Analyzing and Presenting Key Business Information
Brainstorming on, Deciding upon, and Solving Complex Issues
Revising and Simplifying Production-Related Processes
Streamlining Administrative Processes and Support Tasks
Understanding Variation
Managing Cross-Functional Projects
• The more you understand what these tools are and the
underlying philosophy behind them, the better you will be as an
active team member in future projects.
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What is Lean Six Sigma?
For HBD, Lean + Six Sigma = Profit Power!
Intro
Per-Unit Profit = Per-Unit Price – Per-Unit Cost;
Net Profit = Sales – Product Costs – Overhead Expenses
Lean Six Sigma offers you the power to
transform operations into flexible, efficient plants
needed to profitably survive and thrive
in a competitive business landscape.
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Intro
The Money Map
The Money Map -- Where Do YOU Play a Role in this System?
Prices Paid By Customers
– Costs To Manufacture Products & Manage The Business
= Profit Available To Reinvest In Jobs And Plants
Profit (or Loss) =
(Unit Prices x
Volume Sold) –
Costs Incurred
From "What Customers Want"
Quality Products and Effective Solutions
Competitive Prices and Low Cost of Interaction
On-Time Deliveries and Reliable Promise Dates
Accurate Pre-Sale Information and Post-Sale Services
Supplier Chosen And Prices Paid
To "How HBD Makes Products for Sale to Customers"
Sales and Marketing Effort
Product Designs and Technical Specifications
Raw Materials and Inputs from Suppliers
Production Labor and Conversion Energy
General Management and Administration
Post-Sale Billing, Collection, and Customer Support
Products Manufactured And Business Costs Paid
•Productivity
•Efficiency
•Quality
•Speed
•Flexibility
Equals "How HBD Makes Profits to Prosper in its Businesses"
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Key Aspects of Lean
Intro
• Lean is Not New
– Popularized by Toyota more than 30 years ago.
– Many of its tools and concepts have been around for decades.
• Lean is Both Methodology and Philosophy
– Lean aims to eliminate ‘waste’ (in Japanese, “muda”) in every area of a
business, including production, customer relations, product design,
supplier networks, and factory and business administration.
– Its goal is to incorporate less effort, less inventory, less time to develop
products, and less space in order to become highly responsive to actual
customer demand and to produce top-quality product in the most timely,
efficient and economical manner possible.
• Lean Focuses on Customer-Defined Value
– A process step ‘adds value’ if the activity adds form, fit or function to the
product that is desired by the customer, and the customer is willing to
pay you to conduct that activity.
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Key Aspects of Lean, con’t
Intro
• Toyota Defines Seven Key Types of Muda (Waste)
– Overproduction: Producing more than demanded or before it is
needed, e.g., stored materials or inventories.
– Inventory or Work-in-Process (WIP): Material between operations due
to large lot sizes or long process cycle times.
– Transportation: Material movements, by definition, add no value to
products, as they do not affect form, fit or function.
– Processing Waste: Unnecessary or inefficient process steps simply
add cost and time.
– Motion: Effort to move workers and machinery or to transport materials
adds cost and delay.
– Waiting: Long changeover times, slow processing times, and materials
handling tasks limit opportunities to make on-time deliveries.
– Defective Products: Items that fail to meet customer specifications are
pure waste, e.g., returns, rework, scrap, and warranty costs.
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Key Aspects of Six Sigma
Intro
• Six Sigma is Not New
– In existence for more than 20 years; at HBD since 2002.
– Many of its tools and concepts have been around for decades.
– Six Sigma packages the tools and concepts into a clear and systematic
roadmap for process improvement.
• Six Sigma is a Methodology
– The ‘DMAIC’ problem-solving methodology is a disciplined thought
process and tool guide used to solve business issues.
– Define / Measure / Analyze / Improve / Control / (and Verify).
• Variation is Bad (‘Evil’)
– For most processes, a repeatable and predictable result is crucial.
– Six Sigma is designed to identify the key sources of variation and drive
them out of the process, by understanding the key inputs, processes
and outputs of business activities. “Fix the process to get good results.”
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Key Aspects of Six Sigma, con’t
Intro
• Six Sigma has a Customer Focus
– Processes and problems must be viewed from the customer’s
perspective.
– Internal customers (i.e., downstream departments) can be just as
important as external customers (i.e., those who pay the bills).
• Six Sigma is Not Just for Manufacturing or Large Businesses
– Success can be found in all types of companies and all kinds of
processes – including at HBD.
• AND…Six Sigma and Lean are Not Mutually Exclusive
– Without a basic understanding of both methodologies, you risk trying to
‘use a screwdriver to drive a nail.’
– Ask, ‘What tool or technique is most useful to help solve my problem?’
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Overview of
HBD’s LSS Implementation
Intro
• LSS supports HBD’s long-standing corporate strategies
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Customer Satisfaction
Marketing Excellence
Working Capital Management
Cost Reduction and Containment
• LSS was introduced into HBD in 2002, first with the Executive
Office and General Managers and then locally at the plants
– 88 individuals in all 17 business locations trained in LSS (at 7/30/07)
• Projects have successfully touched both production and backoffice (paperwork) processes
– 112 LSS projects initiated (as of 7/31/07) plus 29 documented kaizens
– Over $6.65MM in hard-dollar and soft-dollar savings, cost avoidance,
new-revenue opportunities, and working capital improvements
• LSS represents one key tool for on-going improvement efforts
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LSS Projects’ Areas of Focus
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Intro
Cost Reduction
– Product and Unit Costs, Overhead and Period Expenses, Scrap and Rework
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Cost Avoidance
– Regulatory Expenses, Capital Equipment Needs
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Capacity Increase
– Production Availability, Quick Changeovers, Equipment Utilization
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Customer Satisfaction
– On-time Delivery, Quotation and Production Lead-time, Quality, Cost (Pricing)
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Health & Safety
– Ergonomics
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Flow
– Process Speed, Travel Distance, On-time Delivery, Lead-time
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Working Capital Reduction
– Finished Goods, Work-in-Process and Raw Materials Inventories
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New Revenue
– Revised or New Products
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Who’s Who in
HBD’s LSS Project Teams
Intro
• Corporate Champion (Nelson Law – Dublin, OH)
– Helps identify possible projects; Selects / approves projects for launch
• Team Facilitator (Black Belt or Green Belt)
– Formally-trained team leader who guides team’s analyses and activities
• Project Sponsor
– Process owner with responsibility / authority over process under study
– Accountable for long-term sustainability of project’s gains and results
• Core Team Members (managers, supervisors, operators)
– Cross-functional subject matter experts who “live with the process”;
Mandated to meet regularly to make project progress
• Ad Hoc Team Members (managers, supervisors, operators)
– Additional subject matter experts who may be called upon occasionally
for help
• Supporting Supervisors, Managers & Coworkers of Team
Members
– Not direct part of project team activities; Must plan for / support ways to
allow core team members to meet regularly
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Dynamics of Process Improvement:
The Funnel Effect
Intro
Project Charter
Define Phase
30 - 50 Inputs
Ideas; Guesswork
Measure Phase
10 - 15 KPIVs
Data; Information
Analyze Phase
8 - 10 KPIVs
Root Causes
Improve Phase
3-6
Critical
KPIVs
Experiments; Changes
Control Phase
Documentation; Controls
KPIV = Key Process
Input Variable
KPOV = Key Process
Output Variable
Optimized Process
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DMAIC Methodology Overview:
The Five Phases of Every LSS Project
Intro
• DEFINE
– Define opportunity, project scope, potential benefits and resource needs
• MEASURE
– Determine process map and metrics; Get baseline performance levels;
Define customer requirements for success; Display collected data
• ANALYZE
– Explore root causes of process variation, poor process flow and current
underperformance
• IMPROVE
– Brainstorm and prioritize potential solutions; Pilot-test selected changes;
Select and implement preferred solutions
• CONTROL
– Complete transition back to process owner; Confirm that new process is
stable; Document control plans; Identify and transfer best practices
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Yellow Belt Curriculum Objectives
Intro
• Through the Yellow Belt curriculum, every employee should:
– Understand that Lean and Six Sigma are all about ensuring quality in
terms of the Voice of the Customer
– Understand how data analysis drives business decisions
– Understand how root cause analysis drives solution implementation
– Understand the basics of metrics to describe overall business health
– Understand the use and presentation of data to develop insights and
achieve goals
– Understand the importance of identifying and controlling process
variation and thus costs
– Understand the application of control mechanisms to sustain changes
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Tools to be Learned
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Intro
Team Problem Solving and Team Effectiveness (Working in Teams)
– Cross-Functional Teams
– Characteristics of Effective Team Meetings
– Project Charters and Meeting Agendas
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Voice of the Customer (Knowing What is Important)
– Sources of the Voice of the Customer
– Critical-to-Quality Factors and Critical Customer Requirements
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Idea Generation and Grouping (Working with Ideas)
– Brainstorming; Force Field Analysis
– Cause-and-Effect Diagram / 6Ms; Root Cause Analysis / 5 Why’s
– Affinity Diagram; Nominal Group Technique; Multi-voting
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Data Collection, Analysis and Presentation (Working with Numbers)
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Process and Business Metrics
Data Collection Plan
Check Sheet, Process Study Log and Other Data Collection Forms
Data Stratification and Segmentation
Histogram, Run Chart, Control Chart and Other Graphical Presentations of Data
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Tools to be Learned, con’t
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Intro
Decision-making Tools (Working with Facts)
– Pareto Analysis; Pareto Chart
– Understanding and Explaining Process Variation
– Cause-and-Effect Matrix and Other Prioritization & Selection Tools
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Speed and Flow Implementation (Ensuring Value)
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Process Mapping and Flowcharts
Value-Add vs. Non-Value-Added
5S / Workplace Organization
Spaghetti Diagram (Workflow) and Work Cell Layout
Quick Changeover: Setup and Changeover Reduction
Pull-based Flow and Replenishment
Defect Prevention and Mistake-Proofing (Quality at the Source)
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Standardized Work and Best Practices
Visual Workplace: Visual Aids and Learning Tools
Poka-Yoke (Mistake-Proofing) Devices
Preventative Maintenance (Total Productive Maintenance)
Design Simplification and Parts Rationalization
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Continuous Improvement through
Lean Six Sigma (summary)
Intro
• Observe processes
• Identify problems and gather data
• Determine root causes of the problems
• Identify countermeasures / solutions, and
• Regularly participate in activities to simplify processes and
eliminate waste, unevenness, and unreasonableness.
And…Practice non-blaming and non-judgmental behaviors, as these are
required for realizing genuine continuous improvement.
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Takeaways
Intro
• Every person has a hand in generating profit and, in turn, job
security.
• Lean Six Sigma is not solely about statistics or SPC (statistical
process control) but is a very successful method to enable
continuous improvement.
• Lean Six Sigma provides a powerful set of problem-solving
tools and team effectiveness techniques to address complex
issues.
• These proven tools and techniques can be used anywhere –
and we do mean, anywhere!
• Lean Six Sigma emphasizes team-based creativity, analytical
thinking, and data-driven decision-making.
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