©2005 rucker & associates, inc. all rights reserved. 1 leansigma transformation overview

©2005 Rucker & Associates, Inc. All Rights Reserved.©2005 Rucker & Associates, Inc. All Rights Reserved.

1

LeanSigma Transformation Overview


2

Lean Sigma

A blend of Lean Manufacturing and Six Sigma improvement tools

Applied using Kaizen Methodology

Lean Sigma generates rapid, team-based results


3

60s

70s

80s

90s

00s

DemingDeming

Quality Improvement ToolsQuality Improvement Tools

Reduce VariationReduce Variation

Six Sigma (Motorola)Six Sigma (Motorola)

Toyota Production SystemToyota Production System

Just-in-TimeJust-in-Time

LeanLean

Lean SigmaLean Sigma

LeanLean Six SigmaSix Sigma

FordFord

TQMTQM

History of Lean SigmaHistory of Lean Sigma


4

LEAN Process Evolution in

Lean TransformationWaste Reduction

People

Equipment

Materials

Space Variation Reduction

Capability Improvement

Quality Improvement

Demand SmoothingFlow Consistency

Flow Predictability


5

Value-Add vs. Non-Value-Add

Value-Adding Activities• Transform materials and

information into products and services the customer wants

Non-Value-Adding Activities• Consume resources, but don't

directly contribute to product or service


6

Value AddedEssential processes that transform inputs into outputs that are necessary to meet customer’s requirements

STREAMLINESTREAMLINE

Business Value AddedProcesses deemed necessary to support, control, and monitor internal business functions but have little or no perceived value to the customer

MinimizeMinimize

Non Value AddedProcesses that contribute to neither customer satisfaction nor improved business operations

EliminateEliminate

Lean Approach to VA – NVA - BVA


7

Wastes in Manufacturing

• Defective products• Overproduction• Inventories • Excess motion

Lead time reduction: identify and eliminate wasteLead time reduction: identify and eliminate waste

• Processing• Transportation• Waiting

OPERATIONAL LEAD TIMEOPERATIONAL LEAD TIME

Wasted Time and Activity

Core Process Value

Excessive Motion(Walking to Next Task, etc.)

Defective Products(Identifying, Handling, Fixing)

UnneededProcessing Time

Waiting(Often Result of

Unbalanced Tasks)

Transportation(Movement toStorage area)

ExcessiveInventories

Overproduction


8

Production Lead Time

TypicalCompany

1%

99%

Value-Added Non-Value-Added Improvement

Minor Customer

ImpactTraditional

Improvement

0.5%

99 %

0.5%

Lean WasteReduction 49.5%

1%

49.5% Major Customer

ImpactLead Time


9

OrderEntryOrderEntry

ProductionPlanning

ProductionPlanning SuppliersSuppliers ManufacturingManufacturing DistributionDistribution CustomersCustomers Accounts

ReceivableAccounts

Receivable

O-EO-E ProdPlanProdPlan

SuppSupp MFGMFG DistDist CustCust A/RA/R

TimeTime

Operational Lead TimeOperational Lead Time

AdminAdmin

Business Process Kaizen Business Process Kaizen

Shop floor Kaizen

Time-Based StrategiesTime-Based Strategies

Lead-Time ReductionLead-Time Reduction

Critical for driving improvement to your customersCritical for driving improvement to your customers


10

Lead-Time Reduction Impacts

• Cost

• Quality

• Delivery


11

Lean Sigma – Benefits Your Business

• Improves Quality & Reliability

• Rapid & dramatic improvements in efficiency and productivity

• Creates Culture of Continuous Improvement

• New Competitive Advantages


12

Kaizen Breakthrough Methodology

©2005 Rucker & Associates Consulting Group, Inc. All Rights Reserved.©2005 Rucker & Associates Consulting Group, Inc. All Rights Reserved.

Day 1

Training

Day 2

See Process, Baseline, Generate Ideas

Day 3Try Storm, Implement

Day 4

Refine, Stabilize, Document

Day 5

Sustain, Report Out

On

e W

eek


Just in Time

Takt

One Piece Flow

Pull

People and Partners

5S: Sort, Set in Place, Shine, Standardize, Sustain

TPM

Production Smoothing

Philosophy (Long Term Thinking)

Jidoka

Elim

inat

ion

of W

aste

Time Based StrategyLean Production System

“The Rule Book”

Base Management

Decisions on a long-term

philosophy

Kaizen Breakthrough Methodology

Problem Solving (Continuous Improvement and Learning)

Go see for yourself to thoroughly understand the situation

Monday Train

Tuesday Discovery

Wednesday Change

Thursday Sustain

Friday Communicate

Grow Leaders

who live the philosophy!

Respect, develop,

and challenge

your people


Determine the Defect Y

Establish Process Performance Y

Evaluate Measurement System Y

Evaluate Standard Operations Y

Identify Root Causes X’s

Develop Solutions X’s

Prioritize & Implement Solutions Vital Few X’s

Test Solutions & Verify Results Vital Few X’s

Refine Standard Operations Vital Few X’s

Validate Measurement System Vital Few X’s

Implement Control System & Audit Plan Vital Few X’s

Determine Process Capability Y

MeasureMeasureMeasureMeasure

AnalyzeAnalyzeAnalyzeAnalyze

ImproveImproveImproveImprove

ControlControlControlControl

Lean Sigma Project PhasesLean Sigma Project PhasesLean Sigma Project PhasesLean Sigma Project Phases


Project ImplementationProject ImplementationProject ImplementationProject Implementation

Measure Phase – 5 day Kaizen

Day 5Day 4Day 3Day 2Day 1

• Lean Sigma Overview• Kaizen

Breakthrough Methodology

• Lean Sigma Measure Tools

• Identify defect, “Y”, & project

scope

• Observe Process &

Collect Live & Historical

Data• Enhanced

Spaghetti Map

• Quality Map• Verify Standard

Operations

Teach & Do:

Teach & Do:

Training & Scope

• Determine Process

Capability• Measurement

System Analysis

• Improve measurement

system, if necessary

• Quick kills

• Comparative Analysis

• Basic Quality Tools

• Cause & Effect Chart

• Gather Additional

Data if Required

Teach & Do:

• Presentation of Measure

Phase


Project ImplementationProject ImplementationProject ImplementationProject Implementation

Day 5Day 4Day 3Day 2Day 1

• Lean Sigma Measure Review

• Update Information w/Additional

Data Collection• Lean Sigma

Analyze/ Improve Tools

• Basic Analytical

Tools• Hypothesis

Testing• Identify Root

Cause• Shop Floor Observations

Teach & Do:

Teach & Do:

Training & Scope

• Implement Improvements

• Mistake Proofing

• Collect Data

• Verify Improvements

through Hypothesis

Testing• Refine Standard

Operations

Teach & Do:

• Presentation of Analyze/

Improve Phase

Analyze/Improve Phase – 5 day Kaizen


The Lean Sigma ProcessMeasureMeasureMeasureMeasure AnalyzeAnalyzeAnalyzeAnalyze ImproveImproveImproveImprove ControlControlControlControlDetermine performanceVerify measurement systemIdentify Y & preliminary “x’s”

Narrow the field to the vital few “x’s”

Identify & implement Kaizen improvements for vital few

Verify improvementsOptimize settings for vital

few

Control the process to maintain the gains

Establish a plan to control & review the process

DeliverablesDeliverablesProblem statementFinan. & customer impact“Y” & defect definitionPreliminary “x’s” identifiedQuality mapZst & ZltMSA

Root cause determinationCorrelation of vital few

“x’s” with “Y”Graphical & statistical

analysis of “x’s”

Refined standard opsMistake proof processEstimate of improved

performanceKaizen results & newspaperTrain operators

Results analysis & process verification

Develop control planIdentify leverage

opportunities

Common ToolsCommon ToolsQuality mappingC & E diagramPareto analysisCapability analysisGage R&RComparative analysis

HistogramsBox & whiskerMatrix plotsRun chartsANOVALinear regression Multivariate regressionBinary logistic regression

DOERisk assessment

(improvement)Mistake proofing

(improvement)Statistical tolerancing

Control plan (SPC)Mistake proofing (controls)Risk assessment (controls)


18

Questions?

Lean Sigma Transformation Overview

©2005 rucker & associates, inc. all rights reserved. 1 leansigma transformation overview

Documents