2009 asq summer series : integrating lean, 6-sigma and ... · variables resolved through dmaic and...

Eve Higuerey-Schweizerhof * Property of Value Creation Corporation * [email protected] * 11

Eve Higuerey-Schweizerhof, Ph.D

Value Creation Corporation,

President

2009 ASQ Summer Series:

Integrating Lean, 6-Sigma and Kaizen

to Accelerate Change and Delivery of

Business SolutionsJune 18th, 2009

July 16th, 2009

August 20th, 2009

All at the Mahoney State Park Lodge. Contact: Eddy Sanders

Eve Higuerey-Schweizerhof * Property of Value Creation Corporation * [email protected] *

Agenda� Methodology overview: Lean, Kaizen, and 6-Sigma

� How does an integrated approach work to accelerate change?

� Case Studies:

� Exterior vehicle quality - Video

� AC quality improvement - Video

� Interior vehicle panel quality – Video

� Where are the customers? – Handout

� Let’s get it in the right gear – Handout

� How do I get started?

� Q&A


What is Lean?

� Methodology and universal foundation to increase velocity, eliminate waste or unnecessary activities that do not add value and create a continuous flow of value added activities, as pulled by the customer

� A set of tools to continuously improve this flow

� Value stream mapping � Set up reduction

� 7 types of waste � Standard work

� 5S � Visual factory

� Kaizen � Total productive maintenance

� Error Proofing � Others


Kaizen is a Lean Japanese philosophy that

focuses on continual improvement throughout

all aspects of life

� Short 3-5 day workshop � a mean to implement

process improvement, eliminate waste, and achieve

results

� Pre-work for logistics and planning prior to conducting the

kaizen workshop

� Final report out on last day of workshop

� By understanding the basics of Kaizen, practitioners can

integrate this method into their overall Six Sigma efforts


What is 6-Sigma?� Methodology: a universal data driven problem solving and

variability & defect reduction methodology focused on customer need

� Define-Measure-Analyze-Improve-Control � Existing process

� Define-Measure-Analyze-Design-Verify � New process

� Metric: A performance target of virtually performing at defect free (3.4 defects per million opportunities)


What is Lean 6-Sigma?

Definition:• A customer driven process

improvement methodology

which combines, tools from

both Lean and 6-Sigma

• Improve flow, eliminate

unnecessary waste and/or

reduce variability and defect

reduction to meet/delight

customers expectations.

• By combining these two under the

framework of kaizen, faster results

are delivered for the customer.


Natural Integration of Lean and 6-Sigma

ScientificMethod

State Problem

Make observations

Hypothesis

Experiment

Conclusion

Business uses learning to enable

new technology

6-Sigma Process

(Problem Solving/Variability

Reduction)

Define Define

Measure Measure

Analyze Analyze

Improve Design

Control Verify

Data &

Visual

Rich In

Statistical

Tools

Lean Foundation (Eliminate Waste/ Increase Efficiency

& Flow)

Value Stream Mapping

Current & Future State Maps

Eliminate waste

Close Gaps

Error Proofing

Quick Change-over

5S, TPM/PM, kaizen

Visual Factory, etc.

Rich In VisualTools


Lean and 6-Sigma are complimentary

methodologies with common issues� When problem solving, variability and/or defects can be resolved

through lean tools for waste elimination and/or creating flow ofvalue added activities

� Example: Lack of visual factory, error proofing, too many non-value added steps, and lack of standard work can result in large variability and defects from person to person, customer to customer, day to day, etc

� When creating flow and eliminating unnecessary waste, poor process capability and variability can stand in the way of maximizing value

� Example: A continuous flow can have a high rework due to poor process capability and high variability driven by the interaction effect of 2 variables � resolved through DMAIC and Design of Experiments

� Common issues: customer opportunities (long lead times, quality, NVA cost, value creation, etc)

� More industries are leveraging the power of these methods


Industries in Lean Six Sigma

� Industries deploying some form of Lean Six Sigma

• Advertising

• Banking

• Computer services &

outsourcing

• Document management

• Energy services

• Field & technical services

• Financial services

• Hotels & hospitality

• Insurance

• Logistics and distribution

services

• Healthcare

• Sales & Marketing

• Transportation

• Manufacturing

Implementation of Lean Six Sigma has

transcended traditional manufacturing


� “150+ project closures… $175M in benefit “ Microsoft – 2009 iSixSigma Conference

� “…Better Design performance - Up to 10x improvement in optimized product design…” – Motorola – 2009; i-Six Sigma Conference

� “$250 Million annual verified benefit for 2008” – Chevron, 2009 -iSix Sigma Conference

� “Unsurpassed Quality Built In - Ford, Lincoln and Mercury vehicles continue their impressive quality gains, collectively improving for the fourth straight year and moving into a virtual tie with Honda and Toyota for the 2008 model year, according to the latest U.S. Global Quality Research System (GQRS) study” – 2008 Annual Report

Companies Using Lean Six Sigma

Testimonials


Companies are integrating these process

improvement methodologies to deliver great

quality products and services to customers faster

and better

� Maximize customer experience

� Improve expense reduction and revenue growth

� Increase competitive presence in the market place

FASTER

Lean, Six Sigma, and Kaizen are common process improvement

methods and tools used worldwide to drive change across

multiple industries


� Step 1: Diagnostic and validation of problem

� Step 2: 5-Day 6-Sigma Kaizen Workshop:

Define = Monday

Measure = Tuesday

Analyze = Wednesday

Improve = Thursday

Control = Friday

� Step 3: Report achievements to management on day 5

A 3 step approach is successfully used to integrate Lean, 6-

Sigma and Kaizen to deliver results 15X Faster

“6-Sigma Kaizen”

Lean +

LEARN��APPLY�� DELIVER DAILY


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“If we can really understand the problem, the answer will come out of it, because

the answer is not separate from the problem” - Jiddu Krishnamurti


Step 2 provides the framework to develop and

implement solutions in 5 days• Key Front Line Stakeholders aligned to participate (all levels)

• RESULTS DRIVEN DAILY CADENCE :

LEARN� APPLY� DELIVER RESULTS ON THE JOB

Lean +


15

Lean +

Step 3 is the finish line for one workshop, formalizing

the delivery of lasting improvements in 5 days

Day 5 is also the start line propelling more 6-Sigma kaizen workshops &

accelerated change

•Team report out to management

•Results delivered throughout all 5 days against

•Objectives contracted with management on Step 1

•PLAN – DO – CHECK - ADJUST


By combining these tools stakeholders and

employees learn by doing while achieving your key

business goals

� 15X faster than traditional methods

� Exceptional and competitive business solutions fast

� 50-70% Waste reduction and capability improvement

� Significant financial benefits � 10X

� Highly effective leadership and employee engagement


Lean 6-Sigma Projects vs. 6-Sigma Kaizen

Workshops

Elements Project 6-Sigma Kaizen

Scope Broad/Narrow Narrow

Duration 4-12 months 3-5 days

End point Per project plan End of workshop

Team Cross-functional Cross-Functional

Team size 5-12 3-8

Training Classroom / meetings On the job training

Participation Part-time Full-time / Part Time

for 3-5 days

Project closure/year 1-3 per leader 10-20 per leader


This 3-step approach helps eliminate the common types

of unnecessary waste driving variability in the delivery

Lean 6-Sigma projects

� Large scope � Boiling the ocean

� Low priority project -- Too many competing

priorities

� Broad problem definition

� Unclear measure of success � VOC-VOP

� Too many meetings � Low attendance

� Large team make up � no decision makers

� Learning curve � Slower execution

� Unengaged stakeholders � No support

• Projects lose momentum and support due to these controllable factors, increasing

project timeline and success

• Customer’s experience is also affected with this process variation

�Time �


The key is to remove waste early in the project

planning and execution phases

� Critical Ys only � top objectives & policy deployment

� Structured validation & diagnostic of an impactful problem (vs. many problems)

� Small scope w/significant impact, accountability &

� Clear metrics of success

� 5 day 6-Sigma kaizen workshop � 10 meetings vs. 24- 48+ meetings

� Just in Time Learning � Facilitator led model LEARN-APPLY-DELIVER

� Up to 20 6-Sigma kaizen workshops per leader per annum

� Deliver results to stakeholders in day 5 vs. 4-12 months later � 15X+ faster

• The 6-Sigma Kaizen approach increases momentum, alignment, engagement, and

learning while successfully delivering key objectives in 5 days

• Customers experience improvements faster


Case Studies

20

• Exterior vehicle quality – Video

• AC Quality Improvement – Video

• Interior vehicle panel quality – Video

• Where are the customers? – Handouts

• Let’s get it in the right gear – Handouts

Videos and handouts available during workshops


Getting Started

� Identify an opportunity aligned to your organizations’ top

priorities and objectives -- Management Review

� Diagnose and validate the problem by level and type of problem

� Develop a business case with recommendations , clear

objectives and resources

� Schedule 5-Day 6-Sigma Kaizen Workshop and 5th day report out

meeting with management

� For additional assistance contact Value Creation Corporation �248-320-0113


Thank you

Q&A

22


Eve Higuerey Schweizerhof

E-mail: [email protected]

Phone: 248-320-0113

23

2009 asq summer series : integrating lean, 6-sigma and ... · variables resolved through dmaic and...

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