LEAN THINKING with
Six Sigma
Cutting Costs, Improving Quality, &Speeding Delivery
ByContinuous Process Improvement
Prepared By: Kurt E. Robertson Organization Consulting Department Saudi Aramco 874-6204
The Robertson Guarantee
IF YOU KEEP ON DOING WHAT YOU HAVE ALWAYS DONE
YOU WILL KEEP ON GETTING WHAT YOU'VE ALWAYS GOT.
I PROMISE
LEAN THINKING with SIX SIGMA
PRESENTATION OBJECTIVE
To Provide a brief overview of Lean & Six Sigma.
Things you should know about Lean: Lean and Six Sigma can be successfully applied in both
operations and service environments
Automation shouldn't be the first answer
Both Lean and Six Sigma are data driven
Lean takes a Systems Approach Lean is Team-based
Lean is a: physical transformation to your processes LEAN THINKING with SIX SIGMA
transformation of your organization cultural
LEAN IS ABOUT PEOPLE
EMPOWERMENT Empowerment does not mean total freedom; it is the ability to make choices within boundaries. It is focused freedom. A shared vision of what we want to create provides the focus and direction that ensures that empowerment does not lead to chaos.
Center for Study of Work Teams Harley Davidson Company
LEAN THINKING with SIX SIGMA
Lean compared to Six Sigma Lean and 6 å are like the Democrats and the Republicans in the U.S. Congress
- they both think they are right, and that you are wrong if you don't agree with them - very few from one side ever change sides - some of their methods and decisions are sub-optimal - but each adds balance to the process when applied reasonably and
knowledgeably
Lean focuses on: - reducing the 8 Wastes - Improving process flow - Increasing process speed Lean cannot always bring a process under statistical control
Six Sigma helps: - reduce process variation (one of the 8 wastes) - reduce defects Six Sigma alone cannot dramatically optimize process flow and reduce wastes
Because of their complementary natures , each brings to the improvement process something the other does not, and the fusion of Lean and 6 å is rapidly gaining popularity.
LEAN THINKING with SIX SIGMA DO LEAN FIRST before SIX SIGMA 99% of the time
Complementary Tools
6 Sigma OVERALL YIELD vs SIGMA (Distribution Shifted ñ1.5 å )
# of 3 ñ å 4 ñ å 5 ñ å 6 ñ åSteps
99.99966% 99.9767% 99.379% 93.32% 1 99.9976 99.839 95.733 61.63 7 99.9966 99.768 93.96 50.08 10 ion 99.9932 99.536 88.29 25.08 20
t 99.9864 99.074 77.94 6.29 40 ria 99.9796 98.614 68.81 1.58 60 a sv 99.9728 98.156 60.75 0.40 80
97.70 53.64 0.10 100 99.966 les L 99.949 96.61 39.38 --- 150
- 99.932 95.45 28.77 --- 200
ps E 99.898 93.26 15.43 --- 300
te 99.864 91.11 8.28 --- 400
rs 99.830 89.02 4.44 --- 500 A 99.796 86.97 2.38 --- 600 we 99.762 84.97 1.28 --- 700
fe N 99.729 83.02 0.69 --- 800
- 99.695 81.11 0.37 --- 900
s te 99.661 79.24 0.20 --- 1000 99.593 75.88 0.06 --- 1200 wa 98.985 50.15 --- --- 3000
s 94.384 1.91 --- --- 17000 s 87.880 0.01 Le --- --- 38000
78.820 70000 60.000 150000
Source: SIX SIGMA RESEARCH INSTITUTE Motorola University Motorola, Inc.
LEAN THINKING with SIX SIGMA
Combining Lean and Six Sigma Lean reduces cost, improves quality, and speeds delivery by eliminating non-value added activity in a process by identifying and eliminating waste .
Six Sigma is a more data-driven approach which aims to reduce cost, improve quality, and speed delivery by reducing process variability and defects using the five-step DMAIC model. 6 å depends heavily on data mining and data integrity.
Lean Six Sigma: Any combination should maintain the integrity of each discipline while combining the benefits of each. Attempting to make one look like a part of the other Sub-optimizes both . Problem complexity often determines which to use. Don't use a hammer to crack a peanut shell .
LEAN THINKING with SIX SIGMA
When to use Lean or Six Sigma
Lean is an AXE . Use Lean if: This is the first and or second pass at identifying and eliminating waste Process problems include:
flow operator cycle time product lead time delivery time quality costs
You need rapid improvement You need a mile-wide, inch-deep approach
Six Sigma is a SCALPEL . Use Six Sigma if: Lean has made a first pass with improvement Defects and variation still persist and you need refined data analysis with an inch-wide, mile-deep approach
Lean is not about tinkering with your existing processes. LEAN THINKING with SIX SIGMA
It is a Process and Cultural Transformation
Harvesting the Fruit of Lean Six Sigma
Difficult-to-Reach Fruit Production Preparation Process (PPP) Design for Six Sigma (DFSS )
Middle Fruit Six Sigma tools
----------------------------------
Low-Hanging Fruit Degree Lean tools
of ---------------------------------- Complexity
Ground Fruit Logic and Intuition
LEAN THINKING with SIX SIGMA
Let's Talk Lean First
Do Lean First in most cases And you should
LEAN THINKING with SIX SIGMA
AGENDA History Definition Goal Process Value Stream Mapping Kaizen Becoming Lean Lean and Quality Metrics Why Lean Fails Six Sigma Resistance Six Sigma Your Responsibility How it ends LEAN THINKING with SIX SIGMA
Resources
Lean History
1973-2005 1945-1973 15 th Century 1973 1905 1974-2005
Boeing The Toyota Oil Embargo The Republic "Today and Books about : Danaher Production of Venice Tomorrow" JIT
U.S. Navy System by Cellular Manufacturing U.S. Air Force Henry Ford Visual Factory
Airbus Agile Manufacturing Dell Computer W. Edwards Flexible Manufacturing
Maytag Deming Synchronous Mfg Whirlpool Pull Production
McDonald's Rapid Continuous Microsoft Improvement
Kaizen And most companies Group Technology
that have tried Theory of Constraints MIT
and Six Sigma "The Machine That Changed the World"
LEAN SIX SIGMA "Lean Thinking" by
James Womack
Time LEAN THINKING with SIX SIGMA
AGENDA History
Definition Goal Process Value Stream Mapping Kaizen Becoming Lean Lean and Quality Metrics Why Lean Fails Resistance Your Responsibility How it ends Resources
LEAN THINKING with SIX SIGMA
LEAN
Is based on the Toyota Production System Is the Identification and Elimination of
WASTE in the Process Got its name from MIT and James Womack's
research team Is process simplification , and the relentless
removal of waste from all processes Improves Quality, Cost, Delivery, Safety,
Morale ( QCDSM ) Increases process capacity Reduces defects Results in a stable, reliable, repeatable, predictable LEAN THINKING with SIX SIGMA
process
General Rules
1. Lean is about fixing the SYSTEM and transforming the CULTURE (CM).
2. Lean is about FLOW. 3. Lean is about people , not just about improvement tools. 4. Lean is about YOUR expectations and about what
YOU are willing to tolerate in terms of Q uality, C ost, D elivery, S afety, and M orale (QCDSM) .
5. Processes rarely get better on their own. 6. Successful processes have rules , standards , &
absolutes . 7. To solve a problem you have to admit you have one. 8. Problems need to be quantitatively defined and their
corrective action quantitatively tracked. (Measurement System) .
9. Every project needs a Value Stream Champion. LEAN THINKING with SIX SIGMA
The System
Planning Material Supply Operations Sales and Marketing
Value Stream
Value Stream
LEAN THINKING with SIX SIGMA
WASTE
Waste is any activity that: 1. The customer isn't willing to pay for.
2. Doesn't positively change the form, fit, or function of the product or service (Value Added)
If it prevents the FLOW of product or information..
LEAN THINKING with SIX SIGMA
Lean Focus - The 8 Wastes Lean focuses on identifying and eliminating the 8 hidden wastes common to both
manufacturing and service industries: 1. OVER-PROCESSING: Adding more value to a service or product than
customers want or will pay for. A 15 page report when 1 page would do. Design Engineer enhancing or modifying customer specifications. PROCESS COMPLEXITY
2. MOTION: Needless movement of people (hunting, searching, gathering things). 3. TRANSPORTATION: Unnecessary movement of materials. 4. EXCESS INVENTORY: Work-In-Process (WIP) or raw material (RM) that is in
excess of what is required to produce Just-In-Time (JIT) for the customer. 5. WAITING: Any delay between when one process step/activity ends and the next
step/activity begins. 6. DEFECTS: Any aspect of the product or service that does not conform to
customer needs. (SIX SIGMA) Variation = defects 7. OVER-PRODUCTION: Production of service outputs or products beyond what is
needed for immediate use. 8. UNUSED EMPLOYEE CREATIVITY: Losing time, ideas, skills, improvements,
and learning opportunities by not engaging or listening to your employees. -- The Toyota Production System
LEAN THINKING with SIX SIGMA
The 9 th Waste - HASTE
- American (or Western adage):
"Haste makes waste."
"If you don't have time to do it right, when will you have time to do it over?" -- J. Raymond Robertson
LEAN THINKING with SIX SIGMA
Understanding FLOW
LEAN THINKING with SIX SIGMA
Why Lean?
Business as Usual
Waste PRODUCT CUSTOMER BUILT & SHIPPED ORDER
Lead-time
Lean Process PRODUCT CUSTOMER
BUILT & SHIPPED ORDER
Waste
Lead-time (Shorter) LEAN THINKING with SIX SIGMA
Why Lean?
Typical Value Stream Ratio of Value-Added to Non-Value-Added Activity
3% 97% NVA VA
Where's Most Process Improvement the Real
Teams Attack this . . . Opportunity?
97% NVA
. . . Achieve this . . .
. . . and Ignore this
Source: C. Fiore; Lean Strategies for Product Development , ASQ, 2003
LEAN THINKING with SIX SIGMA
Excess Inventory Our corporate body guard against bad processes
A $ea of RM & WIP
Reduce the inventory and see the wa$te !
LEAN THINKING with SIX SIGMA
You can `t be Lean unless your suppliers are Lean.
Who Is Lean??
Fire Fighters
Hospital Emergency Rooms
Lifeguards
Boeing (Leaner)
Where lives are at risk, you will probably find Lean processes.
What about the rest of us?? LEAN THINKING with SIX SIGMA
Typical Causes of Waste
1. Layout (distance) 2. Long set-up time 3. Poor work methods 4. Lack of training 5. Functional organizations 6. Technology Gaps 7. Little understanding of the
entire process
8. Historic supervisory roles 9. Irrelevant performance measures 10. Lack of workplace organization 11. Supplier quality/reliability 12. Poor communication 13. Avoidable interruptions 14. Complexity
LEAN THINKING with SIX SIGMA 15. More.
Non-Value-Adding Activities (Operations)
"Non-value-adding" activity (NVA) consumes time and money...but does not change the value of an item.
1. SORTING
2. COUNTING
3. STACKING
4. EXPEDITING
5. TRANSFERRING
6. CHECKING
7. TRANSPORTING
8. HUNTING, SEARCHING, GATHERING LEAN THINKING with SIX SIGMA
Non-value-adding (NVA) (office)
Examples 1. CHECKING
2. SIGNATURES
3. ASKING
4. APPROVING
5. REVIEWING
6. MONITORING
7. REWORK
8. TRANSPORTING
9. DOUBLE HANDLING
10.HUNTING, SEARCHING, GATHERING
LEAN THINKING with SIX SIGMA
The Goal of Lean Improved product Q uality, C ost, D elivery; Improved
employee S afety and M orale ( Q C D S M) in any operational or service process.
1. By establishing (one-piece) Flow Based in Takt Time In a Pull environment (JIT)
2. But first I need processes that are: Stable Reliable Predictable Repeatable
3. I get those processes by establishing: Awareness - at all levels of the organization 5S - Workplace organization Value Stream Mapping - information and material flow Flow - improve plant or office layout Leveled Production - reduce lot sizes, setup time, lead times,
LEAN THINKING with SIX SIGMA inventory Standard Work - improve quality, maintenance; simplify processes
Lean Kaizen Sequence
Processes can be transformed Distribution
in days, weeks or months, System Kaizen One-piece flow
but plan 1- 6 years Pull/Kanban Takt time
for the corporate Equipment Kaizen (TPM)
transformation 3P, Autonomation
Leveled Production Line Balancing
Reduce: lot sizes, setup times, lead times, operator cycle times, inventory
AWARENESS
FLOW: AIWs (Gemba Kaizen) Factory Layout Kaizen
Standard Work: Operator Methods
process simplification, quality and maintenance
- 5S - Organize the workplace
LEAN THINKING with SIX SIGMA
The Lean Toolbox 17. SIX SIGMA 1. Value Stream Maps 18. Chaku-Chaku / Load-Load 2. Rapid Improvement (Kaizen)
Events 19. Heijunka / Load Leveling 3. Education 20. Bottlenecks 4. Employee Involvement 21. Point-of-Use Delivery 5. Metrics and Alignment 22. DFMA 6. Flow Cells 23. Control Charting 7. Standard Work 24. Pareto Analysis
- Capacity Analysis 25. Histograms - Takt Time / Cycle Time 26. Root Cause Analysis
Standard Ops Worksheet 27. 5 Why's - Production Control Board
28. Hypothesis Testing 8. 5S / Visual Controls 29. Supply Chain Management 9. Pull/Kanban Systems 30. Critical Chain Project 10. Brainstorming Management 11. Prioritization 31. 7 Quality Control Tools 12. Spaghetti Chart 32. 7 Management & Planning
Tools 13. Poka-Yoke / Mistake Proofing 33. Nominal Group Technique 14. Set-up Reduction
Total Productive Maintenance with SIX 34. Production Process 15. LEAN THINKING SIGMA Preparation (3P) 16. Change Management
How Do I Know Which Tool To Use?
How do you know whether to use Microsoft: - Excel
- PowerPoint
- Word
- Access
- Project
- Visio
Excel is probably not the best choice for word processing.
Word is probably not the best choice for calculations.
**The KNOWLEDGEABLE, EXPERIENCED use of a tool is the key to the SUCCESSFUL use of a tool**
LEAN THINKING with SIX SIGMA
AGENDA History Definition Goal Process
Value Stream Mapping Kaizen Becoming Lean Lean and Quality Metrics Why Lean Fails Resistance Six Sigma Your Responsibility How it ends Resources LEAN THINKING with SIX SIGMA
Team Charter Dates: VSM
Impact RIE Senior Management Sponsor:
Project Value Stream Champion: Just Do It Difficulty
Project Description:
Team Leaders and Members:
Potential Implementation Costs:
Business Reason for the Project: Project Constraints (Financial, Personnel, Equipment):
Expected ROI:
LEAN THINKING with SIX SIGMA
Definition of a Value Stream
The VALUE STREAM is the entire set of processes or activities designed to transform the products and services into what is
required by the customer.
The VALUE STREAM
Design Procure Make Sell Customers Suppliers
A Primary Focus is TIME,
Product and / or Service Flow
Information Flow: Quickly SIGMA Directions In All
Define the Boundaries start stop
What keeps you awake at night?
Value stream customers inputs outputs suppliers
Where are the stakes in the ground that define your Value Stream boundaries? - We'll focus our efforts between them!
LEAN THINKING with SIX SIGMA
Value $tream Map - Finding the WA$TE 90/60/30 day
Production Control 6 week forecasts SUPPLIER forecast CUSTOMER
Daily MRP Weekly Order
Fax 18400 pieces/month 500 ft coils -12000- L Daily Ship - 6400- R Schedule Weekly Schedule Tues. & Tray = 20 pieces
Thurs. 2 shifts
Ass'y Ass'y Stampin S. Weld S. Weld Shipping #1 #2 g #1 #2 I I I I I I 1 1 Staging 1 1 1 1600 L 2700 L Coils 1100 L 1200 L 4600 L
850R 1440R 5 days 600R 640R 2400 R
C/T=40 sec C/T=1 sec C/T=39 sec C/T=46 sec C/T=62 sec .0014% VA C/O = 0 C/O=10 m C/O = 0 C/O=10 m C/O=1 hour
Uptime = Uptime = Uptime = Uptime = Uptime = 100% 85% 100% 80% 100%
27,600 *2 27,600 *2 27,600 *2 27,600 *2 27,600 *2 sec. avail. sec. avail. sec. avail. sec. avail. sec. avail.
PLT = 23.6 days 5 days 7.6d 1.8d 2.7d 2d 4.5d 1 sec 39 sec 46 sec 62 sec 40 sec Process Time
(VAT) = 188 sec. LEAN THINKING with SIX SIGMA
Current State Value Stream Map
Current State - March '02 Harrier Maintenance Flight (500 Hour Minor) AREA:
BUSINESS CASE: VALUE STATEMENT: KEY REQUIREMENTS: MEASUREMENTS: IDEAL STATE:
Identify, remove and repair failed, broken, or Core Manpower Requirements Productivity (hours per unit) Improve Harrier Maintenance Flight ON DEMAND
obsolete parts for Harrier W eapon Platform, Operational Risk Operating Performance Throughput Time DEFECT FREE
functional test, and reapply finish Quality and Flight Safety On Time Delivery 1 BY 1
Cost of other Platforms Floor Space LOW EST COST
LEAN THINKING with SIX SIGMA Implementation Pan Future State
Current State Map
Total time: 156 hrs
waiting time: 148 hrs
Value added time: 8 hrs (5%)
No. of steps: 63
Defect rate: 10%
Backlog: 2 weeks LEAN THINKING with SIX SIGMA
Distance traveled: 1.2 km
Spaghetti Charts Communication and Motion
LEAN THINKING with SIX SIGMA
Project Name IN CHARGE OF FOLLOWUP:
% 28 Status of overall completion =
Plan Dates
ACTION Who Comments %Status
Start Finish
PROJECT SUMMARY:
In charge C COMPL of
Action Department Comments BEGIN ET 40 this
E item
ASD / 7/3/200 7/10/200 AAD to AJD:Follow-up this action item and 1 100
MZU 7 7 report completion
AJD / AAD to AJD: Make sure this is done
ASD 7/3/200 8/10/200 2 MAS: You can decide where the 5
/ 7 7 location of the hotline be.
MZU
ASD / 7/3/200 8/10/200 3 100
MZU 7 7
LEAN THINKING with SIX SIGMA
LEAN AGENDA
History Definition Goal Process Value Stream Mapping
Kaizen Becoming Lean Lean and Quality Metrics Why Lean Fails Resistance Six Sigma Your Responsibility How it ends Resources LEAN THINKING with SIX SIGMA
Kaizen = continuous improvement
RAPID IMPROVEMENT
At the end of the week, a new process should be in place.
Anything else is not rapid improvement. It's a "STUDY".
LEAN THINKING with SIX SIGMA
Team Charter Dates: VSM
Impact RIE Senior Management Sponsor:
Project Value Stream Champion: Just Do It Difficulty
Project Description:
Team Leaders and Members:
Potential Implementation Costs:
Business Reason for the Project: Project Constraints (Financial, Personnel, Equipment):
Expected ROI:
LEAN THINKING with SIX SIGMA
Rapid Improvement Events (RIE)
Action oriented - "leaned" process in place and
functioning by close of event - creativity before capital
Learning by doing
Transform the Value Stream
Structure - 3-5 days in length
- 3-5 teams cross-functional teams
- 6-8 people per team
- Seven week improvement cycle 3 weeks preparation
1 week execution
3 weeks follow-up
LEAN THINKING with SIX SIGMA
RIE Preparation Checklist Rapid Improvement Events
PREPARATION By: Date: Prep. % COT:
Team:
(% COT: ) 2nd Week Before Event: (% COT: ) 1st Week Before Event: (% COT: ) 3rd Week Before Event:
1) Identify the suppliers and inputs 1) Communicate key metrics, targets, and 1) Select the Value Stream from the 2) Identify the customers and outputs tools to be applied to all team participants Enterprise 3) Identify the start / stop boundaries 2) Train team participants on improvement Transformation Plan. 4) Gather facts and data to populate starting process and tools to be applied 2) Select the target area from Value Stream numbers on Target Progress Report 3) Identify what "triggers" work Analysis. 5) Populate the Target Progress Report 4) Double check availability of all resources: 3) Determine the focus - which Lean tools 6) Identify top three improvement metrics - equipment or furniture moves will be applied? 7) Establish improvement targets on top three - computer or phone moves 4) Identify the Team Leader, Co-Leader, and metrics, be aggressive - 5S, shadowing, kitting Team Members. 8) Meet with affected stakeholders to - Production Control Boards 5) Assure at least 1/3rd of participants are communicate Improvement Event schedule, 5) Communicate with affected area, review from the affected area. metrics, targets, and tools to be applied items listed on flip chart and ask for 6) Clear participants calendars for the 9) Set a flip chart up in affected area, ask clarification, make sure these are added to Improvement Event Week. stakeholders to put ideas for improvement Improvement Newspaper 7) Complete the Team Roster. on flip chart. Start Improvement Newspaper. 6) Make sure team break-out area is ready: 10) Capture flow stopper information from - flip charts, markers, post-its, VSA blanks Production Control Boards - forms, stop watches 11) Confirm the availability of any special 7) Make sure Process Champion is set resources for: to give opening remarks on Monday - equipment or furniture moves morning - computer / phone moves 8) Make sure Process Champion is available - 5S, shadowing, kitting for Team Leader Meetings Monday - - Production Control Boards Wednesday 12) Obtain any special data collection 9) Schedule Final Presentation with Process instructions from your Coach such as: Champion and appropriate leadership - Information from previous Improvement 10) Plan working lunches Events 11)Confirm all team participants are going to - Customer critical to quality issues be available full time for entire event - Safety data 12) Confirm Target Progress Report and 13) Confirm all participants are still available Team Roster are complete for entire Event week
LEAN THINKING with SIX SIGMA
RIE Daily Checklist Rapid Improvement Events
TEAM DAILY CHECKLIST
Day One. Day Two. Day Three. Day Four.
1. Review team goals and objectives, create Day 1 plan. 1. Identify wastes to attack. 1. Train Stakeholders on new cell layout and standard 1. Train Stakeholders on new cell layout and work. standard work
2. Meet with Cell Stakeholders and review goals. 2. After TAKT time/Cycle time bar charts. 2. Assign a team member to each Stakeholder. 2. Assign a team member to each Stakeholder. (loading diagram)
3. Before Data, Documentation and "Tools" TAKT Time Calculation 3. Create plan for new cell layout. 3. Run new cell. 3. Run new cell. Before Time Observations Before Cycle Time Bar Charts (Loading Diagrams) 4. Meet with Stakeholders, review progress and plans 4. Fix problems immediately. 4. Create/post Key Point, Work Combination Sheets, Before Standard Work Sheet/Cell Layout solicit ideas and concerns. Standard Work Sheet, Production Control Board, Before WIP Count ($ and pieces) and Kaizen Newspaper. 5. Create production control board. Before 6S Audit 5. After standard work combination sheets. Before Safety Audit 6. Work on 6-S and safety issues. 5. Fix problems immediately. Before Work Combination Sheets (one per operator) 6. Notify support groups by 2.00 PM of required
support. 7. Create/post Key Point, Work Combination Sheets, 6. After 6-S and safety audits. Standard Work Sheet, Production Control Board, 4. Take a "Waste Walk", to further identify opportunities. and Kaizen Newspaper. 7. Off shop floor by 1:00. 7. Daily recap.
5. Daily recap. 8. Create daily plan for Wednesday. 8. After area pictures and Team picture. 8. Daily recap.
6. Meet with Stakeholders and review progress.ideas. 9. Create daily plan for Thursday. 9. Team Leader/Co Leader. How late do we stay? 9. Prepare final presentation.
7. Create daily plan for Tuesday. 10. Complete Team/Event binder. 10. Daily Team Leader meeting. 10. Team Leader/Co Leader. How late do we stay?
8. Team Leader/Co-Leader. How late do we stay? 11. 6-S meeting area. 11. 6-S meeting area. 11. Daily Team Leader meeting.
9. Daily Team Leader meeting. 12. Implement plan/create cell. 12. 6-S meeting area. 12. Inventory kit boxes and find missing articles.
10. 6-S meeting area.
** Team Leaders need to assign action items ** Team Leaders need to assign action items ** Team Leaders need to assign action items ** Team Leaders need to assign action items to specific people on the teams and require to specific people on the teams and require to specific people on the teams and require to specific people on the teams and require
follow up reports on LEAN THINKING
with SIX increments. SIGMA follow up reports on progress at a minimum progress at a minimum follow up reports on progress at a minimum follow up reports on progress at a minimum of two hour increments. of two hour increments. of two hour of two hour increments.
LEAN AGENDA
History Definition Goal Process Value Stream Mapping Kaizen
Becoming Lean Lean and Quality Metrics Why Lean Fails Resistance Six Sigma Your Responsibility How it ends Resources LEAN THINKING with SIX SIGMA
The 5S Principles:
Proper arrangement and orderliness
"Good factories (workplaces) develop beginning with the 5Ss; bad factories fall apart beginning with the 5Ss." -Hiroyuki Hirano
5S Workplace Organization
1. SORT (seiri): Clearly distinguish what is necessary & what is not. Remove what does not support an organized, visual and Lean workplace.
2. SIMPLIFY (seiton): Ensure everything required to do the task has a visually designated location, is available, functional, and can easily be seen, reached and returned in the sequence used; Consider an operating room or fire engine. Mark/label locations clearly.
3. SWEEP (seiso): Keep the work area, tools and equipment - Floors, machines, desks, files, equipment - organized, organized, repaired (TPM), and visually marked.
4. STANDARDIZE (seiketsu): Maintain & improve the first 3S's. Establish procedures so storage and cleaning actions are consistently applied by everyone.
5. SUSTAIN (shitsuke): Hold the gains. Achieve the discipline/habit of following the correct procedures. From this new level of efficiency, start again.
LEAN THINKING with SIX SIGMA
Visual Controls A Major Element of 5S
Visual controls: - Answer a question before it is asked
- Help spot abnormalities in the system
- Examples: Medical - Moment of Truth
KSA/Bahrain Causeway booth lights: - Avg and Std Dev
LEAN THINKING with SIX SIGMA
The 5S's Low Level of 5S 1. Sort
Needed from the unneeded
2. Shine Clean, scrub, and fix
3. Set in order High Level of 5S A place for
everything
4. Standardize A plan to sustain
5. Sustain Following through
LEAN THINKING with SIX SIGMA
Standard Work Board
TAKT time & Delivery Performance Measure
Andon Flag
Cell Key Measures
6S Layout and Assignments
Corrective Action Matrix and Plan
Standard Work Bar Chart LEAN THINKING with SIX SIGMA
LEAN THINKING with SIX SIGMA
Shadow Hand Tools
LEAN THINKING with SIX SIGMA
Signal Lights
LEAN THINKING with SIX SIGMA
Visual Management
Foot-printing Labeling Shadowing
LEAN THINKING with SIX SIGMA Production Color Schemes
Control Boards Striping
LEAN THINKING with SIX SIGMA
Visual Controls
LEAN THINKING with SIX SIGMA
Other Visual & Audio Controls
Visual and Audio controls answer questions before they are asked.
1. Clock 2. Traffic lights with a timer 3. Traffic Lines/ lights/signs 4. Sounds announcing break time 5. Call to Prayer 6. Score boards at sporting events 7. Arrival/Departure boards in airports 8. Lights indicating machine or process condition 9. Lights and siren on emergency vehicles 10. Gauges on medical & industrial equipment 11. Big teeth on a snarling lion 12. Take-a-Number systems 13. Colored caps on milk bottles
LEAN THINKING with SIX SIGMA
Point-of-Use Strategy: 7 Elements of Surgery
Hand Information Tools
Instruments
Power Tools
7 Elements Of Surgery
Supplies
Fixtures
Fasteners
LEAN THINKING with SIX SIGMA
Supermarket Pull System
Kanban Kanban
Customer Supplying Process Process product product
Supermarket
Customer Process goes to supermarket and withdraws what it needs when it needs it. Supplying Process produces to replenish what was withdrawn. Purpose: Controls production at supplying process without tying to schedule. Controls production between
flows. LEAN THINKING with SIX SIGMA
Pull/Kanban Systems
Pull
On Demand - Upstream Supplier
- Downstream User
- Visual Trigger
Sequenced - Use FIFO lanes
Replenished - Create supermarkets with SIX SIGMA
LEAN THINKING
Traditional vs Cellular Flow
Traditional flow Cellular flow Dept 1
4 3 Dept 2 DONE
OUT IN OUT
IN IN
1 2 Dept 3
Dept 4 Demand paced production
IN OUT IN
Value-adding steps in order OUT
No stops, piles, or back-ups
Flexible DONE
Less transportation
Less work-in-process
LEAN THINKING with SIX SIGMA
U - Shaped Cell
Andon
RM
FG
LEAN THINKING with SIX SIGMA
Other Important Lean Tools
1. Setup Reduction 2. Standard Operations 3. Times
- Operator Cycle Time - Product Lead Time - Waste Time - Takt Time (customer driven)
4. Total Productive Maintenance (TPM) 5. Production Preparation Process (PPP) 6. Bottleneck reduction 7. Mistake proofing (Poke Yoke) (Example:
mobile SIM card) 8. 5 Whys 9. Self-Inspection and Acceptance (SI&A)
LEAN THINKING with SIX SIGMA
Lean Implementation Sequence
Distribution System Kaizen
One-piece flow Pull/Kanban
Takt time
PEOPLE
Equipment Kaizen (TPM) 3P, Autonomation
Leveled Production Line Balancing
Reduce: lot sizes, setup times, lead times, operator cycle times, inventory
AWARENESS
FLOW: AIWs (Gemba Kaizen) Factory Layout Kaizen
Standard Work: Operator Methods
process simplification, quality and maintenance
- 5S - Organize the workplace
LEAN THINKING with SIX SIGMA
LEAN AGENDA
History Definition Goal Process Value Stream Mapping Kaizen Becoming Lean
Lean and Quality Metrics Why Lean Fails Resistance Six Sigma Your Responsibility How it ends Resources LEAN THINKING with SIX SIGMA
How Does Lean Help Quality?
RULE #1: Do not make, accept or pass on a defect. RULE #2: Inspection is the enemy of quality. RULE #3: The operator is responsible for identifying,
tracking and correcting his defect rate. By using standard work, reducing bottlenecks, and using other Lean tools, Lean makes processes
- stable - reliable - predictable - repeatable
The HIDDEN FACTORY: Lean will not succeed without addressing and correcting variation and its resulting defect rate, because FLOW cannot exist in a process with a high defect rate.
Our processes have THINKING with SIX SIGMA rates because we
high defect LEAN
TOLERATE high defect rates
AGENDA History Definition Goal Process Value Stream Mapping Kaizen Becoming Lean Lean and Quality
Metrics Why Lean Fails Resistance Six Sigma Your Responsibility How it ends Resources LEAN THINKING with SIX SIGMA
Implementation Metrics Leading Indicators
1. Cycle Time
2. Inventory (amount, turn rate, IRA)
3. Productivity
4. Square Feet (foot print)
5. Set-up Time
6. Product Lead Time Lean is data driven
7. People Travel
8. Product Travel
9. Volume
10. Crew Size
11. Safety/Ergonomics LEAN THINKING with SIX SIGMA
METRICS - The Forensics of CPI
1. What gets measured gets fixed .
2. If you can measure it, you can change it. 3. Metrics drive behavior . Tell me how you will measure me and I will tell
you how I will perform. 4. The folly of rewarding A while hoping for B . 5. Measure first, then manage. 6. Leading indicators versus Lagging indicators (NDE)- Always reviewing
the past , and not guiding the future . Manage the leading indicators, and the lagging indicators will be O.K.
7. Problems must be quantified, exposed and confronted . Lean cannot remedy an unacknowledged or hidden problem.
8. Don't measure effort and process compliance. Measure results. 9. What you allow, you encourage. 10. Your Recommendations are only as good as your analysis. Your
analysis is only as good as your data. Your data is only as good as you measurement system. Data Integrity is the foundation of a credible project. LEAN THINKING with SIX SIGMA
AGENDA History Definition Goal Process Value Stream Mapping Kaizen Becoming Lean Lean and Quality Metrics
Why Lean Fails Resistance Six Sigma Your Responsibility How it ends Resources LEAN THINKING with SIX SIGMA
Reasons Lean Fails 1. No sense of urgency (burning platform) 2. Looking for a quick fix (lean pill) 3. No leadership commitment and support
Awareness Full-time practitioners
4. No education and awareness among the employees and management. (CM)
5. No understanding of Lean (flavor of the month) 6. No Sensei (Do-It-Yourself Lean) 7. No Value Stream Map 8. No implementation or sustaining plan (PM) 9. No customer and supplier involvement in the
improvement process. LEAN THINKING with SIX SIGMA
AGENDA History Definition Goal Process Value Stream Mapping Kaizen Becoming Lean Lean and Quality Metrics Why Lean Fails
Resistance Six Sigma Your Responsibility How it ends Resources LEAN THINKING with SIX SIGMA
Managing Resistance Leading Change Traditional Situation
Increasing Increasing Increasing Increasing Neutral Neutral cooperation resistance resistance cooperation
Critical mass
Early adopters Anchor
Strong pull draggers from early "Uncommitted adopters Mass"
You cannot ignore the anchor draggers!
Management Management attention attention
"The focal point really shouldn't be on THINKING with SIX SIGMA but on getting people
LEAN managing resistance,
excited about the benefits of the change." -- Jeff Hiatt, president and CEO of Prosci
How Do You Know When You are Lean?
40% reduction in assembly hours per unit
60% reduction in lead time You never get Lean,
92% reduction in line move time with SIX SIGMA LEAN THINKING you only get Leaner
Some Lean Successes
Helicopter BCD Check: Reduced TAT from 28- 14 days
Surveying Services: Exponentially increased flying hours for the photography aircraft. 10% increase in one week
Wellhead Turnover: Days to turnover reduced
Material Supply: Staging time reduced, scanners repaired, forklifts replaced.
LEAN THINKING with SIX SIGMA
Lean in Project Mgt and Construction
Studies involving international companies suggest a 25% improvement in construction productivity would be the low-hanging fruit. The main findings of the study are:
1. Avoidable Interruptions: Over 60% of workdays contain avoidable interruptions with a loss in man-hours of 10-40%.
2. Overtime : causes approximately 5% loss in productivity for every 5 hours of overtime per week.
3. Over-manning: 10% productivity loss for every 25% unplanned increase in labor force.
4. Days of Week: Productivity on Tuesdays, Wednesdays and Thursdays (Thursday/Friday/Sat in the West) can be 15% lower than that of the remaining part of the working week.
5. Productivity: can vary by up to 400% (from day to day) for same crew, and over 25% amongst crews performing similar activities under the same circumstances. Major causes of productivity variation are interruptions, quality of labor force, and motivation.
Dr. Rashad Zakieh (PMP)
Operations Services Saudi Aramco, Saudi Arabia
LEAN THINKING with SIX SIGMA Tel. 874-3800 (Work)
International email: [email protected]
BOEING 737 FINAL ASSEMBLY BEFORE
LEAN IMPLEMENTATION
LEAN THINKING with SIX SIGMA
LEAN THINKING with SIX SIGMA
The Boeing 737 Moving Line
LEAN THINKING with SIX SIGMA
LEAN AGENDA History Definition Goal Process Value Stream Mapping Kaizen Becoming Lean Lean and Quality Metrics Why Lean Fails Resistance
Six Sigma Your Responsibility How it ends Resources LEAN THINKING with SIX SIGMA
SIX SIGMA
It is a process capability measure
It is a commercial program
Packaged at Motorola in 1985
May lead to "Analysis Paralysis"
LEAN THINKING with SIX SIGMA
Lean Focus - The 8 Wastes Lean focuses on identifying and eliminating the 8 hidden wastes common to both
manufacturing and service industries: 1. OVER-PROCESSING: Adding more value to a service or product than
customers want or will pay for.
2. MOTION: Needless movement of people (looking for things).
3. TRANSPORTATION: Unnecessary movement of materials.
4. EXCESS INVENTORY: any work-in-process or raw material that is in excess of what is required to produce just-in-time for the customer.
5. WAITING: Any delay between when one process step/activity ends and the next step/activity begins.
6. DEFECTS: Any aspect of the product or service that does not conform to customer needs. (SIX SIGMA) Variation = defects
7. OVER-PRODUCTION: Production of service outputs or products beyond what is needed for immediate use.
8. UNUSED EMPLOYEE CREATIVITY: Losing time, ideas, skills, improvements, and learning opportunities by not engaging or listening to your employees.
LEAN THINKING with SIX SIGMA
Understanding Variation
Variation means that a process or product does not
produce the same results every time it is measured
is always present at some level is inherent in every process or product is our enemy in delivering services or
manufacturing products, reduction helps to improve quality, reduce
costs, increase profits, and increase customer satisfaction.
LEAN THINKING with SIX SIGMA
Lean Six Sigma Process Improvement
Lean Six Sigma uses the DMAIC process for Project Management Project Execution
LEAN THINKING with SIX SIGMA
Dissecting DMAIC
Define Measure Analyze Improve Control
the process: the process gains: what is important
Analyze Data Ensure Solution is to the customer?: Sustained Identify Root Causes Project Selection
Team Formation
Establish Goal
the process performance measures:
Prioritize root causes how well we are doing?:
Innovate pilot solutions Collect Data
Validate the improvement Construct Process Flow
Validate Measurement System LEAN THINKING with SIX SIGMA
Y = f(x)
Y= f(x) , refers to a problem or process output (Y) , that is the result of one or more process inputs (Xs) . Eliminating or improving the Xs reduces or eliminates the problem (Y) . Controlling the Xs provides a process that is more
- Predictable
- Reliable
- Capable
- Repeatable, and
- Dependable
The results are a Y that can be forecast, and a proactive rather than reactive work environment.
LEAN THINKING with SIX SIGMA
Waste & Process Variation - The True Costs Scrap
Inspection Rework Traditional Cost of Field Modifications Warranty Poor Quality (COPQ)
Penalties & damages (measured) Rejects
Hidden Cost of Lost sales Poor Quality (COPQ) times
Long cycle Overtime
Margin slippages (measurable) Late delivery
More receivables Travel & Living Expenses
Lost Opportunity Longer Set-ups Excess inventory
Expediting costs Lengthy Installs (intangible)
Customer Productivity Loss Sales compromises
Engineering Change Orders Lost Customer Loyalty
Customer Dissatisfaction Employee Morale, Productivity, Turnover
LEAN THINKING with SIX SIGMA
Understanding & Reducing Variation
# of Goals
Lower Specification Upper Specification Limit LEAN THINKING with SIX SIGMA Limit
What Does Sigma Level Mean?
Example
Lower Upper Specification Specification
Customers have Limit Limit (customer) (customer)
a target in mind, Target
but will allow some variation within the Spec Range
LEAN THINKING with SIX SIGMA
What Does Sigma Level Mean?
Example
Upper Lower Specification Specification Actual Limit Target Limit
Measurement has Considerable
Variation Defects - Resulting in Defects
Scrap, Waste, Late Deliveries, and Customer Dissatisfaction
LEAN THINKING with SIX SIGMA
What Does Sigma Level Mean?
Upper Lower Specification Specification
Limit Target Limit How Capable is our Process to Produce within
Spec? Defects Defects
2 åSigma Defects % Level Per Mill. In Spec.
2 308,500 69.1
On Average it's OK - - it's a Variation issue On Average it's OK it's a Variation issue LEAN THINKING with SIX SIGMA
BEWARE OF AVERAGES
What Does Sigma Level Mean?
Lower Upper Specification Specification
Reducing Limit Limit
Variation is Clearly the Key
to Improving Process
Capability
3 åSigma Defects % Level Per Mill. In Spec.
3 66,800 93.3
LEAN THINKING with SIX SIGMA
What Does Sigma Level Mean?
Causes of Variation Include
Lower Upper a Variety of Specification Specification
Factors, such as: Limit Limit
1. Machines 2. People 3. Material 4. Environment 5. No Standard
Work. Sigma Defects %
4 åLevel Per Mill. In Spec. 4 6,200 99.4
LEAN THINKING with SIX SIGMA
What Does Sigma Level Mean?
Variation Causes Errors, which
Cause Defects, Lower Upper Specification Specification
which Lead to Limit Limit
Rework, and to Processes which
are not Stable Reliable, Repeatable, and Predictable.
5 åSigma Defects % Level Per Mill. In Spec.
5 233 99.98
LEAN THINKING with SIX SIGMA
What Does Sigma Level Mean?
Reducing Variation
Reduces Errors, Lower Upper Specification Specification
and the Limit Limit
Resulting Defects and Rework, and
therefore leads to Improved
Process Capability Sigma Defects %
6 åLevel Per Mill. In Spec.
6 3.4 99.9997
LEAN THINKING with SIX SIGMA
Variation = Unpredictable Processes
Work Order Process Mean
Improved Process
Existing Process
1 50 100 Output Variation in weeks
Contracting process
Material Delivery process
Time to sink a well
Wife's shopping bill
Wife's shopping time
Customers Remember the Extremes (Variation), not the Average LEAN THINKING with SIX SIGMA
ENTITLEMENT
Improved Process
Upper Mean Specification
Entitlement Limit
Existing Process
1 50 100
Output Variation in weeks
LEAN THINKING with SIX SIGMA LSS Helps Us Consistently Deliver the Best We Can Do.
What Does Sigma Level Mean?
sure Mea y Lower Upper
is a bilit Specification Specification
evel Limit Limit
6 åa L ss Capa Sigm roce
of P
Sigma Defects % Level Per Mill. In Spec.
2 308,500 69.1
3 66,800 93.3
4 6,200 99.4
5 233 99.98 LEAN THINKING with SIX SIGMA
6 3.4 99.9997
Practical Meaning of Six Sigma
3.8-Sigma 6-Sigma 3.4 defects per 3.8-Sigma 6-Sigma million
99% Good 99.99966% Good 99% Good 99.99966% Good opportunities
20,000 lost articles of mail per hour Seven articles lost per hour
5,000 incorrect surgical operations per 1.7 incorrect operations per week week
Two short or long landings at most One short or long landing every five major airports each day years
200,000 wrong drug prescriptions each 68 wrong drug prescriptions per year year
LEAN THINKING with SIX SIGMA
Six Sigma Project Management Checklist
Measure Analyze Improve Control Define Measure Analyze Improve Control Define
Develop solution options Identify Sponsor and other Create Fishbone Analyze Process Flow Perform Capability Improve control of Tie to defined Critical Path key stakeholders Analysis of improved
Value-added significant root causes Form project team defect process Re-design process to Team leader Collect Data steps Develop and Implement
Team members Ys (results) with Non value- obtain required a Control Plan capability Tour process Xs (data tags) added steps Complete Project Perform DOE as Opportunities Clarify project Evaluate Measurement Closure Package
Problem statement required Systems Analyze Data Update financial Goal statement Gage R&R, Graphical tools Evaluate options and select benefits statement as Process output = Y Hypothesis final solution Understand detailed required
Prioritization matrix Get OCD focal Define process process Tests Detailed process Interrelationship Determine measurement boundaries final evaluation
High level map system for improved process map w/ rework Digraph (if List best practices Identify lessons Create implementation plan (SIPOC) loops appropriate.)
Regression Update FMEA Define project boundaries Describe Process learned Resources Numerical Update financial benefits analysis Authority statement statistics Identify and collect Use SPC Charts
Contact Six Sigma Graphs: Time, Determine project timeline additional required data Hand off project to OCD for concurrence Identify CTQ Customer Hist., Pareto, etc. Identify significant Xs process owner
Create control Tie to root Create follow up Obtain buy-in / support for Requirements Define the Defect improvement actions chart cause analysis action plan Define defect Draw Conduct pilot / testing to Establish Process Develop Final report out
Standard verify results measure Capability conclusions DPMO or % Implement improvements Develop estimate of Perform FMEA template
Collect data to verify potential financial benefit if Defects Update charter as Calculate Z improvement project goal is achieved required
Communicate results Gain Sponsor Approval of Update Charter Develop Analyze as required Update Charter Project Charter report out
as required Identify Pull and Push Develop Define/Measure Standard Develop Improve report out Leveraging opportunities report out template
For Sponsor Standard template
Master Black Belt Project Champion
LEAN AGENDA
History Definition Goal Process Value Stream Mapping Kaizen Becoming Lean Lean and Quality Metrics Why Lean Fails Resistance Six Sigma Your Responsibility
How it ends Resources LEAN THINKING with SIX SIGMA
You Turn the Gears
# of Teams Chartered # of Events Value Stream
Penetration
ultiple Passes Full-Time Resources Discipline to the Process
Results Critical Mass Internal Experts Self-sustaining Lean Culture
DEPLOYMENT METRICS LEAN THINKING with SIX SIGMA
Leadership's Role Senior Leadership 1. Create the Vision
- Where are we going and why are we going there?
2. Align the Organization
- Goals and Objectives
- One Plan - One Initiative
3. Participate in the Process
- Don't just "talk it" , WALK IT
4. Commit Resources
- Right quantity and caliber
5. Educate the Workforce
6. Communicate
- Vision, Results, Lessons Learned
LEAN THINKING with SIX SIGMA
Leadership's Role
The Manager's Role 1. Help pick the right value streams, projects and teams 2. Follow the method
Remove barriers to change Have one plan
3. Clearly define roles and responsibilities 4. Support the Education & Training of your employees 5. Communicate
Engage the workforce in dialogue about Lean. Walk the walk, talk the talk. Host and participate in continuous process improvement activities.
Be a cheerleader. Emphasize quality, 5S, identification and elimination of waste. Demand follow-up and sustained improvement.
LEAN THINKING with SIX SIGMA
LEAN AGENDA
History Definition Goal Process Value Stream Mapping Kaizen Becoming Lean Lean and Quality Metrics Why Lean Fails Resistance Six Sigma Your Responsibility
How it ends Resources LEAN THINKING with SIX SIGMA
The Results
REMEMBER: It is CONTINUOUS Process Improvement
COST, QUALITY , DELIVERY , SAFETY , MORALE Lean Increases Capacity
- Your process can produce the same amount with fewer people. - Your process can produce more with the same number of people.
No more band aid solutions that become tomorrow's problems. You come much closer to solving your process problems for the last
time In a process with
- Continuous Flow - Based on Takt Time - in a Pull Environment
LEAN THINKING with SIX SIGMA
Lean or Six Sigma Goal: Breakthrough Performance Focused on things that matter
Current State Process
Lean or Six Sigma Breakthrough
Defects, cost, l time, waste
Improvement Period
Future State Process
Time
LEAN THINKING with SIX SIGMA
LEAN AGENDA
History Definition Goal Process Value Stream Mapping Kaizen Becoming Lean Lean and Quality Metrics Why Lean Fails Resistance Six Sigma Your Responsibility How it ends
Resources LEAN THINKING with SIX SIGMA
Reading List
Lean Thinking
The Machine That Changed the World
Better Thinking, Better Results
Gemba Kaizen
High Velocity Culture Change
Learning to See
5 Pillars of the Visual Workplace
The Goal
Critical Chain
The Gold Mine THINKING with SIX SIGMA
LEAN
WEBSITES - www.productivityinc.com - www.productivitypress.com
- www.qualitypress.asq.org
- www.sme.org
- www.asq.org
- www.crcpress.com
- www.lean.org
- www.nwlean.net
- www.pmi.org
- www.qualitydigest.com
- www.isixsigma.com
LEAN THINKING with SIX SIGMA
LEAN AGENDA
History Definition Goal Process Value Stream Mapping Kaizen Becoming Lean Lean and Quality Metrics Why Lean Fails Resistance Six Sigma Your Responsibility How it ends Resources LEAN THINKING with SIX SIGMA
SHUKRAN JAZEELAN