Transcript Lean six sigma Training - Electric Boat Corporation

Lean Six Sigma
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Overview
• What is Lean Six Sigma?
• What can Lean Six Sigma do?
• How to get started
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Paths to Cost Reduction
•
•
•
•
Cut services
Reduce labor (lay-off)
Contract work out
Eliminate product features
• Remove roadblocks so your
employees can produce
• Assign resources to
bottlenecks
• Maximize internal capabilities
• Focus on what the customer
wants to buy
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What is Lean Six Sigma?
Combined 2 industry concepts:
• Lean
• Six Sigma
Combines problem solving tools:
Kanban
Visual
Mgt.
Kaizen
SPC
JIT - Pull
5S
Setup
Reduction
Value
Stream
Mapping
ANOVA
DOE
Hypothesis
Testing
DFSS
MSA
Root Cause
Analysis
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Lean
• Focus on what is of VALUE to the customer
• Separate non-value added from value added
– Map the actions required to produce (value stream)
– Eliminate activities that do not move the product
closer to its final form
• Make the remaining value added activities flow
smoothly
• Produce only what customers need (pull)
• Continuous improvement
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Which is the better airline ticket?
Traveling to Groton, CT
Ticket A
• $500 round trip
• 6 hours
• 3 layovers
• Arriving in NYC
Ticket B
• $650 round trip
• 3 hours
• 1 layover
• Arriving in
Groton/New London
What does value mean to you?
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Lean Philosophy
Value
– More to value than just cost
– “Defined by the ultimate customer” – Womack
• Voice of the Customer (VOC)
– Expressed in terms of
• A specific product
• A function or capability
– Questions
• What does the customer want to buy?
• What would they pay extra for?
Focus on what is of VALUE to the customer
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Types of Activities
Value-Added
– Brings product closer to it’s final form
– Changes the form, fit or function
– An activity the customer is willing to pay for
Non-Value-Added
– Does not contribute to bringing the product to it’s final form
– Doesn’t improve the form, fit, or function of the product or service
on the first pass through the process.
– An activity the customer is not willing to pay for
– Waste
Separate non value added from value added
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8 Types of Waste
UNDER-UTILIZED
SKILLS
Steps are wasteful, people are valuable
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Lean Example
Valve Manufacturing
• Objective: Reduce time to produce valves
• Solution: Revise process – no temporary attachments
“Legs”
Lifting
Blocks
(2)
Tapped
holes for
lifting
“Feet”
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Lean Example
Certification Package
Not Required
Redundant Review
Mill Test Report
Minimize Rework
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Batch versus Continuous Flow
Batch & Queue Processing
Process
A
Process
C
Process
B
10 Minutes
10 Minutes
10 Minutes
30+ Minutes for order of 10
Continuous Flow
Process Process Process
C
B
A
12 Minutes for
order of 10
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Lean Approach
Batch
Dept 1
Continuous Flow
Dept 2
IN
From: NAVSEA VSA Training
DONE
4
3
1
2
OUT
OUT
IN
Dept 3
IN
Dept 4
OUT
IN
IN
OUT
DONE
Batch processing has a direct impact
on the total Work-in-Process
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Lean Approach
Transport
Disassemble
Wait
Remove From
Ship
Start
Broken
Component
= Value Added Time
Set-up
Wait
Machine
Time
From: NAVSEA VSA Training
Transport
Re-Install
Machine
Repaired
Component
Finish
= Non-Value-Added Time (WASTE)
Value-Added time is typically only a small
percentage of the total time
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Lean Approach
From: NAVSEA VSA Training
Total Lead
Lead-time
-time = 48 days
Value added time = 315 secs !!!!
Overtype with Section Title
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Lean Approach
From: NAVSEA VSA Training
Time
LARGE amount
Small Amount of
Time Eliminated
Traditional Focus
• Improve Value-Added
work steps
• Better tools, machines,
instructions
• Result: Small time
savings
of time saved
Lean Focus
• Make all of the Value Stream visible
• Reduce or eliminate Non-ValueAdded portions of the process
• Result: Large time savings
Time savings have a direct
impact on
• Cost
• Capacity
• Schedule
• Flexibility
• Resources
• Etc.
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Continuous Flow
Traditional Thinking:
Batch Production—like a meandering
stream with many stagnant pools,
waterfalls, and eddies
Doubling production rate means
doubling resources
Continuous Flow Thinking:
Pipeline with fast-flowing product –
no stops, piles, or back-ups
Doubling production rate means
halving the time waiting
“’Flow’ production was an even more valuable innovation of Henry Ford’s
than his better-known ‘mass’ production model.”
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How Does Lean
Solve Problems?
• Focuses on what is of VALUE to the
customer
– Understand customer expectations and
requirements
– In terms of the what the product provides,
not just the product itself
• Eliminates activities that do not move the
product closer to it’s final form
– Reduces the 8 types of waste
• Creates continuous flow
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Six Sigma Philosophy
• Reduce variation
• Y=f(X)
• Making decisions based on data
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What is “Six Sigma”?
Change in quality philosophies
Traditional “Goalpost” Philosophy
LSL
Taguchi Philosophy
LSL
USL
Loss
Loss
$$
$$
USL
Loss
Loss
$$
$$
Loss
OK
Anything outside
the specification limits
represents quality losses
Any deviation from
the target causes
losses to society
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How Does Six Sigma Solve
Problems?
Practical Problem
(Define/Measure)
Statistical Problem
(Analyze)
Practical Solution
(Control)
Statistical Solution
(Improve)
Y=f(x)
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Six Sigma Example
• Practical Problem
– Pass rate for Technicial Exams was declining
• Statistical Problem
– Y=f(X)
– Y – Scores
– X
•
•
•
•
Exam section
Place of training
How often skills are used (experience)
Elapsed time since training
• Statistical Solution
– 3 sections of the exam are the highest trouble spots
– Experience is the most significant factor in passing
• Practical Solution
– Focus training on 3 areas for inexperienced technicians
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What is “Six Sigma”?
99.99966% of values are within specifications
m
LSL
USL
ss s
ss s
ss s
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Is “Six Sigma” Overkill?
99.99966% (6s)
99% (≈3.8s)
• 20,000 lost articles of
mail per hour
• 15 minutes of unsafe
drinking water each day
• 5,000 incorrect surgical
operations per week
• 2 short or long landings at
most major airports each
day
• 11 hours of no electricity
per month
• 7 lost articles of mail per
hour
• 1 minute of unsafe drinking
water per 7 months
• 1.7 incorrect surgical
operations per week
• 1 short or long landing
every 5 years
• 1 hour of no electricity
every 34 years
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Pipe Welding Quality
Reduce concave & convex defects in pipe
butt welds
Experimented on the effects of:
• Purge pressure
• Starting point
• Weld segment overlap
• Intersegment temperature
• Welder technique
Convex
Concave
Identified key factors to control and ones that had no effect
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Effluent Discharge
Test
Test
Org’s
Org’s
SUBASE
SUBASE
Main
MainStores
Stores
KIT 1
KIT 3
KIT 2
Controlled
Industrial
Facility
Main
Main
Stores
Stores
Controlled
Industrial
Facility
Hardware
Hardware
Stores
Stores
Before
After
Notice Required
Months
Days
Time to assemble
Weeks
Days
Overhead
Direct/Defined
High
Low
Cost
Frustration
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“Value Stream Mapping”
Tile Material Manufacturer
•
•
•
•
Mapped the “value stream”
Identified key constraints
Implementing “just go do its”
Identified specific resources needed to support 2 ships
per year
Sub
vendor
Cleaned Day
tank
Order raw
materials and
Day tank
Sub
vendor
EB places
PO with SII
EB / NGNN
Raw
materials
Day tank 1 then 2 to 3
weeks later Day tank
2
3 mixer
batches to fill
1 Day tank
1.5 weeks
Inspect Day
tank
C/T= 1 day
2 person
Receive raw
materials
2 days
2 people
Oven
5 days
0 people
Agitate & oven
1 day
1 person
Combine, mix
& oven
1 day
1.5 people
Combine
mixture in large
tank
1 day
1 person
Make samples
and test them
1 day
2 people
Blend/mix
1 day
1.5 people
Take sample,
cure and test
10 days
1 person
Fill Day tank
1 day
2 people
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Ways To Get To Six Sigma
• Identify critical inputs & control them
• Quantifiable management
– Measure performance
– Decisions based on data
Y=f(x)
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Ways To Get To Six Sigma
Control Methods
Best • Type 1 Corrective Action – Countermeasure
• Type 2 Corrective Action – Flag
• SPC/SPM – Empowered Operators
• Type 3 Corrective Action – Inspection
• SPC/SPM – Operators Not Empowered
• Standard Operating Procedure
• Warning Signal – Used to Detect Defects
• SPC/SPM - Wallpaper
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“But we aren’t mass production”
Look for repetition:
• Valve manufacturing
• Certification package review
• Pipe welding
• Effluent discharge
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“But we aren’t mass production”
• Product Families
– Different products that follow the same steps
• Processes
– Repetitive tasks
• For a product
• For a service
• For just normal day to day activities
– “If it’s not the first time, then there is a
process.”
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Supplier Lean Outreach
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Why Supplier Lean Outreach?
• Extend Lean and Six Sigma to suppliers
30%
31%
Purchased
Government
Material
Material
Shipyard
Labor
39%
Block III (SSN787) Costs
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Goal
Conduct joint process improvement projects
with VIRGINIA Class vendors to reduce
defects, and cycle time via the application
of Lean Six Sigma tools and techniques.
• Create a win-win between supplier and EB
– Tangible improvement
– Benefits both companies
• Funded for 2 projects/year
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Methodology
1. Voice of the Customer
– All customers not just purchasing
2. Kick-off with Vendor
– Identify problems, issues, roadblocks
3. Value Stream Analysis & Development of
Improvement Plan
4. Improvement Plan Execution and
Follow-on Onsites
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How To Get Started
“We all tend to concentrate on taking corrective
actions that we know how to take, not necessarily
concentrating on the problems we should correct
and the actions needed to correct (them).”
- Eliyahu Goldratt
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How To Get Started
Involve the employees
• Examine the detailed process with them
• Empower them to make process changes to:
– Eliminate non-value-added steps
– Keep adding value continuously without interruptions
• Ask the right questions
– What can we do to save time?
– Not: What can we do to save
money?
• Get to the root causes
– 5-Whys, etc.
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How To Get Started
Reduce work in process (WIP):
WIP = Waiting = Longer lead times
Delayed sales
Increased expenses
= Less Profit!
Completions
1
2
2
3
1
6
1
4
1
1
5
1
3
2
1
1
200 Units of Work In Process
Avg.LeadTi me 
1
2
5
1
6
1
5
3
1
1
1
4
1
1
20 Units/Day
Jobs In WIP
200

 10 days
Avg.Comple tion Rate 20
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How To Get Started
Books to read:
• Lean Thinking. Womack & Jones
• Lean Six Sigma: Combining Six Sigma
Quality With Lean Speed. M. L. George
• Theory of Constraints. Goldratt
• The Goal. Goldratt
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How To Get Started
Communicate with Electric Boat
• Things you are doing
• Ask for clarification on our needs
– Voice of the Customer
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Wrap - Up
• What is Lean Six Sigma?
• What can Lean Six Sigma do?
• How to get started
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