microsoft powerpoint - leangreen-six sigma_040509.ppt [read

LeanGreen-Six SigmaLeanGreen Six SigmaWorkshop

LARRY E. PENNINGTON, PE, CSSBB, ,www.AQSN.com

April 1, 2009April 1, 2009

AGENDAAGENDAObjective: To share the Six Sigma j gmethodologies, combined with Lean concepts and how CleanTech/Green can benefit.

L Si SiLean Six SigmaGreen Teams

Contributions by:Contributions by: Cyrus Kotval & Roberto Valotta

Break to stretch, etc.Lean Project Management – Fred LaFontaineQ & A with Panel of Black Belts/MBB

L. Pennington www.AQSN.com 2

What Is Six Sigma?Si Sigma is a problem sol ing methodologSix Sigma is a problem solving methodology and collection of tools to analyze and remove sources of process variation using DMAICsources of process variation using DMAIC

DefineMeasureAnalyze

Measurement / Goal Measurement / Goal

Vision / PhilosophyVision / Philosophy

Measurement / Goal Measurement / Goal

Vision / PhilosophyVision / Philosophy

Improve Control

Problem Solving Problem Solving ProcessProcess

Problem Solving Problem Solving ProcessProcess


History of The 6-Sigma Quality Concept

Motorola implemented a quality improvement program in 1982.Quality improvement efforts pointed to the need for improved mathematical analysis tools.As a result the “6-Sigma” discipline was developed to bring together a range of statistical analysis toolsanalysis tools.Motorola was widely acclaimed in industrial quality circles for this pioneering work


quality circles for this pioneering work

Six Sigma (cont’d)6σ denotes a process that has six standard deviations between the mean and either specification limits.6σ denotes a process that has only 3 4 defects6σ denotes a process that has only 3.4 defects per million.6σ is a process improvement methodology6σ is a process improvement methodology


…..6-Sigma is all about reducing variability….V i bilit i f th lit fVariability is one measure of the quality of a process and is inherent in ALL processes

k bj i f i i d liOne key objective of 6-Sigma is to deliver a very high level of quality and hence a low l l f i bililevel of variability.


In slightly simpler terms…..6-Sigma is a quality system which can be applied to improve the performance of anyapplied to improve the performance of anyprocess to near perfection by using statistical and problem solving tool sets in astatistical and problem solving tool sets in a systematic and disciplined way.


Basically….6-Sigma is a business improvement process centered around a series of statistical toolscentered around a series of statistical tools and techniquesThese tools and techniq es can be appliedThese tools and techniques can be applied to a very wide range of business activities or processesor processes


Goals of the 6-Sigma Quality Concept

D f R d iDefect Reduction

Yield ImprovementYield Improvement

Improved Customer SatisfactionImproved Customer Satisfaction

Higher Shareholder ValueHigher Shareholder Value

= PROFIT to the business


What are Sigma values?Sigma values are measures of variability related to

Level of Sigma DPMO % good

Sigma values are measures of variability related to the number of opportunities for error

Level of Sigma DPMO % good

1 609,000 31.00

2 308,000 69.20

3 66,800 93.32

4 6,210 99.38

5 230 99.977

L. Pennington www.AQSN.com 106 3.4 99.99967

I 99% G d E h?Is 99% Good Enough?3.8σ

99% Good Product or Service

6 σ

99 99966% Good99% Good Product or Service 99.99966% Good

20,000 Articles of mail lost per hour Seven

15 minutes per day Unsafe drinking waterOne minute perseven months

I t i l d5,000 1.7

Incorrect surgical proceduresper week

Sh t l l di tTwo per daymajor airports

One every five yearsShort or long landings at

Wrong drug prescriptions


200,000per year

68Wrong drug prescriptions

What Is Lean?Lean is a collection of tools and methodsLean is a collection of tools and methods designed to eliminate waste, reduce delays, improve performance and reduce costs

Lean focuses on eliminating non-valued add; where traditional cost down focuses on reducing h i i l dd dthe time in value added steps.

Lean should achieve sustainable business improvements with emphasis on verifiable financial results.


Eli i ti Th S W tEliminating The Seven WastesMaterial Shortages, Un-level Demand, Build to

stock, Economic Lot Sizes, Batching, Bottleneckprocesses, Unbalanced capacities, Quality

bl L h ti B ildi

1. OverProduction

problems, Long change-over times, BuildingEarlier than needed, Poor logistics, Poor layout,Poor machine reliability, Emphasis on keeping

machines busy opposed to keeping material busy.

Buffers , Excess WIP, Supplier

Internal, Rework, Supplier,Final Test, Inspection, Out ofControl Process, Lack of skill,

training and on the jobsupport, Inaccurate designand engineering, Machine

inaccuracy2.

Inventory7. Defects

, , ppinventories for long lead time,

Stock, Production Schedule noteven, inaccurate forecasting,excessive downtime / setup.

Poor work design, ErgonomicD i T l ti T l &

Excessive testing,

inaccuracy

3. Motion6. Over

Processing

Design, Travel time, Tool &Material access, InadequateOperating Procedure, PoorHousekeeping, Inadequate

Training

cess e test g,Install, Reconfiguration,Material variability/over

design, Lack ofoperating procedures

4. Waiting5.

Transportation Materials Shortages, Un-level Demand,

Startup, Vendor Predictability, SchedulingConflicts, Lack of flexibility in personnel or

equipment, Downtime/Breakdown,Ineffective planning Design or Quality

Movement between buildings/sites,Premium, Freight, Distribution,

Network, Plant Layout,Unnecessary material handling

L. Pennington www.AQSN.com 13Predefined methodology to identify and eliminate waste.

Ineffective planning, Design or Qualityissues, Transportation, Unnecessary

material handling

Unnecessary material handling

Other Wastes to IncludeHuman Factors

Under utilizationUnder utilizationMiss-applied capabilitiesW t d ti i itiWasted time on wrong priorities

Energy – SustainabilityHeating/Air-conditioningLighting


Water

Steps To Achieve Lean1 D fi l f i f d ifi1. Define value from perspective of end customer: specific

product, capabilities, price & time

2 Id if i l t f h d d2. Identify entire value stream for each product or product family and eliminate waste (design, order, product)

3 M k h i i l i fl3. Make the remaining value-creating steps flow

4. Design and provide what the customer wants only when h i ( ll )the customer wants it (pull-system)

5. Pursue perfection


L T lLean Tools

Process flow diagramsValue stream maps

Plant Layout for Cont. FlowKaizen

1-pc workflowLine balancingP ll / k b t

Poka Yoke (error proofing)Single Min. Exchange DieT t l P t ti M i tPull / kanban systems

WIP mgmt (FIFO)Takt time (rate of sales)

Total Preventative Maint.5S (sort, set, shine, standardize, sustain)

Visual workplaceTakt time (rate of sales)Standardized workHeijunka (level load prod’n)

Visual workplaceCross-trainingQuality at the source


j ( p ) Q y

C i Fl P d iContinuous Flow Production—Eight Steps

1. Collect data and analyze work flow2 Design process sequence and cell2. Design process sequence and cell3. Standardize the work4 Produce and move one piece at a time4. Produce and move one piece at a time5. Produce at the rate of customer’s consumption6 S t l f hi6. Separate people from machines7. Train people to operate multiple processes8 B l i i h ll


8. Balance operations in the cell

Lean AccomplishmentsLi k ll i fl th t t th h t tLink all processes in a flow that generates the shortest leadtimes, highest quality, and lowest costImprovements to:

Efficiency, productivityCycle timeInventory turnsySpace & equipment utilizationScrapCosts of QualityQ yCustomer Service

Bottom line impact and competitive advantage


Why Lean Sigma?Provides a consistent, quantitative, problem solving methodologyg gy

Helps improve financial strength thereby helping the company the customer and thehelping the company, the customer, and the employee

d b ild i lNeed to build into our culture


The Focus Of Six SigmaThe Focus Of Six Sigma

f ( )f ( )f (X)f (X)Y=Y=

YDependent

X1 . . . XN

IndependentOutputEffectSymptom

InputCauseProblemSymptom

MonitorProblemControl

Y = f(X)


( )Focus on X’s (process inputs) to improve the Y (process output)

Why Apply Six Sigma“Best in Class” have demonstrated 6σA 4 d >10% fA 4σ company spends >10% of revenue on internal and external repair

d fA 6σ company spends <1% of revenue on internal and external repair


Key to Achieving Six Sigma Quality

Focus on the customer & listen to the voice of the customerSelect processes that affect customer satisfaction and add value

Reduce variability in all processesCenter all processes on the targetp gGather data to reduce defect levelsControl the inputs and monitor the outputs


Characteristics of Six Sigma ProgramsG l f d i i i COPQ d iGoal of reducing variation, COPQ, and waste in all processes.Includes transactional processes as well asIncludes transactional processes as well as manufacturing processes.Uses the best talent in the organization, provide g , pintensive training, deploy them on biggest projects.S d bl l i j hStructured problem solving project approach.Emphasis on measurable results that are maintained over time


maintained over time.

What Makes The 6-Sigma Approach Different??

Understanding of Customer Needs & WantsM h d l & T lMethodology & Tools

Data DrivenStatistically Validated

Project FocusedLeadership Commitment & InvolvementComplements and reinforces other process measurement


tools & processes (e.g., Lean, 8D, PDCA, Kaizen etc.)

How Lean Sigma Programs Differ

Top management support & participation essential for success.Infrastructure includes: Steering Committee, Executive Committee, Finance Dept, Program Office.Intensive Training and CoachingMeasurement and tracking of financial metrics.Projects chosen for 4-6 month time frame.Control plans done to hold gains.


Implementation of The 6 SigmaImplementation of The 6-Sigma Quality Concept

Identify a Business Quality or Process ProblemProblemSelect a “Team” of individuals with an interest in sol ing the Probleminterest in solving the Problem


The Six Sigma PlayersProject Champions take their company's vision, missions, goals, and metrics and translate them into individual unit tasksindividual unit tasks.

Additionally, Champions must remove any roadblocks to the program's success.

Project Champions are involved in selecting projects and identifying Black and Green Belt Candidates.

Th i id dThey set improvement targets, provide resources, andreview the projects on a regular basis so that they can transfer knowledge gained throughout the


transfer knowledge gained throughout the organization.

Major Players and Roles (cont’d)Black Belts: Project leaders, project team coaches, change agents. Typically receive 4 weeks of training g g yp y gspread over four months. Responsible for the financial outcome of their projects.Master Black Belts: Primary trainer and coach of Black Belts and Green Belts. A resource to provide t h i l id i th li ti f thtechnical guidance in the proper application of the tools during project execution.


Methodology: D-M-A-I-CA 5 step approachC t d i lit fCustomer driven quality focusA project-based infrastructure as

i l d ib dpreviously describedEmphasis on providing extensive training in statistical quality tools


DMAIC Improvement Model C K l

• Agree on the problem to be solved or

• Set the improvement target

• What data do we have

TOLLGATEDMAIC Improvement Model – C. Kotval

opportunity to be addressed

• Gather The Voice of the Customer and customer CTQs

today and how good is it ?• What additional data is

needed ?

TOLLGATEcustomer CTQs• Analyze the data• Decide what is

critical• Get more data

• Implement improvement plans

TOLLGATETOLLGATE

Get more data (DOE)

• Analyze the data

improvement plans• Monitor/audit to

ensure benefits are locked in

• Institutionalize

TOLLGATETOLLGATE

• Prioritize improvement opportunities

• Generate action plans for t i t t


most important• Pilot potential solution(s)

Define PhaseD fi i h P jDefining the Project

Done by members of Steering CommitteeG l h ll d fi d j i dGoal to have a well defined project assigned to a process improvement team

o Objectives and Boundaries Seto Objectives and Boundaries Seto Business Goals, Customer Needs & End Goal(s)

Outputs: Project Scope w/Critical Goalsp j po How to Include Cost of Poor Qualityo Include the Voice of the Customer


Examples of “Define” ToolsBrainstormP iProcess mappingCause and effect matrixFishbone diagram


TeamTeam members identified & specifiedP j t f i ifi t i ith t iProjects of significant size with extensive data analysis should be led by a trained Black BeltBlack Belt.Projects broken down into smaller

i l i d icomponents or involving process redesign, a Green Belt leader is appropriate.


DeploymentThe process for deployment:

•Management involvement•Empowered teamsSt ti ti l “bl k b lt ”•Statistical “black belts”

- High level of management commitment and involvement.- Aggressive improvement goals driven down through theAggressive improvement goals driven down through the

organization.- Corporate-wide uniform goals and common metrics. - Extensive education and training support.g pp- Employees want to take ownership and become world class

producers.- Recognition and Awards.


“Quality is Everyone's job”

Expected BenefitsP j t Ch t h ld i l dProject Charter should include:

Summary of tangible and intangible benefits of the proposed project.

Baseline Measure – The ‘As-Is” conditionImprovement targetP j t iProject savings

Tangible benefits should be expressed both in terms of the relevant performance indicator and the dollar savings.Examples of intangible benefits might be: improved customer satisfaction, improved company morale, etc.


C i i f P j S l iCriteria for Project SelectionDoes the project have recurring events?Does the project have recurring events?

Is the scope of the project narrow?

Do metrics exist? Can measurements be established in an appropriate amount of time?

Do you have control of the process?

Does the project improve Customer Satisfaction?Does the project improve Customer Satisfaction?If “Yes” to all of the above, the project is an excellent candidate for a Consumer Driven 6-Sigma Project.


Define Phase DeliverablesManagement

Projects prioritized with Project ChartersProjects prioritized with Project ChartersPersonnel assigned to lead and participateFinance representation to validate savingsp g

Project LeaderClear project mission and goals acceptedClear project mission and goals acceptedCost of Poor Quality study within scope of project boundaries.


Measure PhaseG l Pi i t l ti f blGoal: Pinpoint location or source of problemExit with statistical characterization of our output (Y) variables and Key Process Input (X) Variables (KPIVs)

Understand Existing Conditions and ProblemsUse the tools available to measure the magnitude of the problem & how to use basic quality tools (eg “As Is” workflow model)


E l f “M ” T lExamples of “Measure” ToolsCapability analysisCapability analysis

Cp and Cpk; DPU; DPMOFMEAFMEAData collection plan

Data stratificationSampling techniques

MSAWalking the processGage R&R

Rolled throughput yield


Rolled throughput yield

Measuring Project COPQIdentify the activities (wastes) that result from poor quality. Use brainstorming methods with project team.Determine the effects of these activities on all departments concerneddepartments concerned.Collect data and estimate the costs for these activitiesactivitiesHave the resulting COPQ model validated by accounting or finance representative.


Analyze PhaseBegin ith theories of process problemsBegin with theories of process problems derived from measure phaseCollect data to confirm or reject theoryCollect data to confirm or reject theoryIdentify vital few root causes (inputs)

li i h i l i ( ) h dEliminate the potential inputs (Xs) that do not impact our outputs (Ys)

C d Eff DiCause and Effect DiagramAssociation Matrix showing impact(s)


Examples of “Analyze” ToolsPareto chartR h tRun chart

Boxplot

Histogram

lScatter plot

Hypothesis Testing


yp g

Improve PhaseS l t th ti l ti th t P dSelect the optimum solution that was Proposed, Developed, Evaluated, and ImplementedReview outputs to determine the greatest opportunityReview outputs to determine the greatest opportunity for improvement.

Design of ExperimentsDesign of ExperimentsEvolutionary Operation“To Be” process workflow with possible solutionsp pSimulation Results - solutions & alternatives


Examples of “Improve” ToolsPilot studyP ff t iPay-off matrixRating and weightingDoECost benefit analysisy


Control PhaseI l h S l i ( ) l d &Implement the Solution(s), selected & validated, with controls in place to maintain gainsgains.Refine steps with new standards createdD i dDocument new, improved processTurn revised process back to the control of h FIX PERMANENTLY!!the process owner - FIX PERMANENTLY!!

Implement further improvements over time


Examples of “Control” ToolsError proofingC t l h tControl chartsControl plansReaction plansPeriodic Capability Studiesp y


U i D t D i A h fUsing Data-Driven Approach for Decision-Makingec s o a g

We don’t know what we don’t knowWe can’t act on what we don’t knowWe won’t know until we searchWe won’t search for what we don’t questionWe don’t question what we don’t measureWe don t question what we don t measureHence, we just don’t know


Summary:Management philosophy of qualityStatistical target of six sigma or 3.4 defects in one g gmillion opportunitiesComponents of Six Sigma are people power and process power

Executive Leader, Champion, Master Black Belt Black Belt and Green BeltBelt, Black Belt, and Green BeltDefine, Measure, Analyze, Improve, Control

Customer focus


Customer focus

Purpose of Workshop C. Kotval

To educate participants about Six Sigma and Leanand LeanLearn about the DMAIC methodology for contin o s impro ementcontinuous improvementEmphasize the potential of the application

f h i i l h lof the Lean Six Sigma tools to the Clean Tech industry


Le eraging in the Clean TechLeveraging in the Clean Tech Industry – C. KotvalThe Clean Tech industry is relatively new and is establishing itselfC titi i ti i tCompetitive pressures require continuous improvement efforts on the manufacturing side of the business, increasing efficiencies and reducing wasteStandards and Processes infrastructure will need to be established and improvedSolutions to quality and business issues will be neededSolutions to quality and business issues will be needed with effective projects and solutions

Solution Imperative: Lean Six Sigma provides the vehicle for


p g p fdriving competitive differentiation

Clean & 6 sigma:Clean & 6 sigma:- What‘s the next step - R.Valotta

Refining standards and local regulationsISO14004 EISA (US Energy Independence Security Act)EPAct (US Energy Policy Act of 1992)Renewable Fuel StandardRoHS (Restriction of Hazardous Substances)

These and other Standards need to be integrated in the lean training and deployment



Ensure the End-To-End process is applied (from material creation to full disposition)

Share the winning examples and learn from them (e g :Share the winning examples and learn from them (e.g.: substitute styrofoam with Instapack foam; bi-plastic; etc.) Technically evaluate the “residual” of the end process (e.g.: if we burn the material: ashes and CO2; if we count on natural decomposition: how many years, etc.)How sustainable is the process (e.g.: is it used only for one p ( g ytype of product line? for how long? etc.)

These “winning” processes need to be published globally w/o border restrictions since everyone in the world is


w/o border restrictions since everyone in the world is involved.


Tie the green/lean approach with the “eco-economics”

i i h b d i h h b li iDecisions have to be made with the bottom line in mind

Save power in the datacenter by sharing the cost saving to the CFO.Save power in the datacenter by sharing the cost saving to the CFO.Be able to be independent from the grid when there is a black out (e.g.: production does not stop)Legally aware of the financial implications if environmental rules g y pare violated.

The overall green/clean approach has to have the environmental solutions tied to financial benefit


environmental solutions tied to financial benefit (E.g.: short, medium and long term saving).

Clean & 6 sigma:Clean & 6 sigma:- What‘s the next step – R.Valotta

Current lean process Green/lean process

Differentiation between lean & lean/green approach

Cu e e p ocessMfg process/floor assessmentRe-design the process flowList the tools & material

Same as current process+Maximize recyclingMaximize recoveryList the tools & material

strictly neededSegregate & remove from the floor the tools & material not

Maximize recoveryID disposal methodsUse biodegradable mat’ls in product and processfloor the tools & material not

necessary for the operationin product and processOptimize manufacturingprocess flow


Conclusion – C. Kotval

There are MANY tools and methods for continuousThere are MANY tools and methods for continuous improvement:

Total Quality ManagementLeanSix SigmaBenchmarking World ClassBenchmarking World ClassISO 9000 & other standards

It takes leadership to apply the right tools and p pp y gmethods for the companyWhat’s important is to consistently follow a


formalized methodology

microsoft powerpoint - leangreen-six sigma_040509.ppt [read

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