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Presented By:

L. Shawn Cheadle General Counsel, Surveillance & Navigation Systems

Lockheed Martin Space Systems Co.

Association of Corporate Counsel www.acc.com

Lean Six Sigma: Lean Six Sigma for the Law Department

January 11, 2011

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Team Dynamics •  Always set ground rules •  Active listening

–  one speaker at a time, –  reflective statements –  seek clarification

•  Active participation (use round-the-table polling) •  Use intervention techniques

–  naysayers –  side conversations –  ask open-ended questions

•  Negotiation, Mediation

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Lean vs. Six Sigma Lean (Flow) Six Sigma (DMAIC)

Identify Value Define

Define Value Stream Measure

Determine Flow Analyze

Define Pull Improve

Improve Process Control

Before “Lean Six Sigma” there was Continuous Improvement, TQM, Zero Defects, JIT, and more

Dr. W. Edwards Deming: Father of Production and Management Improvements—1950s in Japan and U.S.

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Lean vs. Six Sigma Goals

Lean (Flow) Six Sigma (DMAIC)

Cut Waste Defect Free, 99.99966%

Kaizen Workshops Mathematics, Statistics

Tools Tools

Improve Process Control Process

7 Sigma = 99.9999981%

both aim to improve processes

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DMAIC Problem Solving

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Define Phase: Define the problem and identify opportunities for improvement. Specify what customers value.

Albert Einstein said if he had one hour to save the world, “I would spend fifty-five minutes defining the problem

and only five minutes finding the solution.”

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Kaizens: Structured Improvement Activity (SIA) •  Kai: take apart and make new •  Zen: think. Make good the actions of others •  Preparation Period (1-3 weeks typical)

–  Develop a Charter –  Define the activity, problem statement –  Set the team, date(s) –  Establish executive sponsorship

•  SIA (3-5 days) •  Follow-up (3 weeks out): complete open actions

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Problem Statement:

Objectives/Deliverables:

SIA Scope Information: Process Start: Process End: Commandments: Monuments: ROIC Impact: Trigger: LM21 Tools:

Sponsor:

Team Leader:

LM21 Facilitator:

Team Members:

SIA Dates:

Charter Summary For:

Champion:

SIA Type: Kaizen (3-day)

LM21 Mentor/Coach:

SSC LM21 TT #:

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Lean Tools Kaizen (Improvement) Workshops

5 S (Sort, Straighten, Sweep, Standardize, Sustain, (Safety))

Value Stream Mapping (define value, cut non-value add) Current State, Future State

Brainstorming, PICK Charts, Takt Time, Spaghetti Diagram

Kanban (pull system)

8 Forms of Waste*

GOAL: Eliminate Waste, Improve Process

* 8 Forms of Waste: Inventory, Transportation, Over-Processing, Waiting/Queue Time, Unnecessary Motion, Defects, Over-Production, Injuries

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Fishbone: Use for root cause analysis

Data Not Shared

Firewall Confidentiality Data

Relationship Development

Incomplete

Falsely Precluded

Truly Precluded

Lost in Process

Falsely Precluded

Don't know who to ask for it

Don't collect it

TJC and JCR

Vendors Burden on customers

Don't know it exists

Advantage Perception (non-firewall)

Truly Precluded

Inaccurate

Translation between systems

Don't know it 's already been shared

Cost

Purchase list rather than challenge

interpretation

No lists

Insufficient orientation

No personal relationships

Accessibility Different IT systems Business Decisions

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Lean Tools in Action map

•  Map Value Stream, As Is

tools •  Brainstorm •  PICK Chart

lean •  Map Future State •  Mistake Proof

Current state

Future state

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SSC Legal Hold Process – Ideal State

Oth

erC

IRT

ITD

ata

Ow

ner

RIM

Lega

l Distribute memo of legal hold

including link to guidance

Draft tracking matrix and

establish update cycle (2 wk

nominal)

Post hold summary to Sharepoint

Ongoing obligation to preserve

Conduct internal data review

Data to outside counsel?

Establish drop box/ network

storage, if requested.

Identify & accomplish

physical acquisition of data

storage assets

Identify and accomplish logical

acquisition of relevant data

Filter, refine and index data

Produce physical assets identified for acquisition, if

applicable

Assist in logical acquisition, if

requested

Search for and identify responsive

records

Engage Desktop Support to

preserve custody/integrity of assets

Collect data

Determine existence of

“orphan” data and collect, if required

Review memo and guidance.

If required, send acknowledgement and notify Legal of any other potential

sources of responsive records

Preserve, collect and/or produce

(per memo instructions)

Issue Resolved

Coordinate hold reporting

Assist record owner with hold

tag

Develop listing of hold boxes

Notify custodians of hold releaseRelease Hold?

Ongoing obligation to preserve and

produce (existing and

newly created if relevant/ required)

Identify unstructured

data and coordinate

collection w/ Legal

Provide Cert. if required in

memo

If no responsive

record found and required in memo, provide

cert of “no documents

found”

Provide hold status notification

to legal when requested

Release data from hold

Lift holds from archive boxes

Archive drop box and network share data

Add close to inactive report and

sharepoint site

Legal Hold Process: Future State

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Sustain

Sort (organize)

Straighten (simplify)

Sweep (shine, clean)

Standardize (label, like

kind)

5S or 6S (with Safety)

A place for everything, everything in its place!

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5S

Point of Use Paper

•  Use a scorecard •  Scale of 0 to 5 for each S

–  5 = World Class –  4 = Excellent –  3 = Good –  2 = Marginal –  1 = Poor –  0 = Unacceptable

•  Document Before and After for each “S”

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5S Scorecard Item Requirement Description Date Score

(0 to 5) 1 Remove unnecessary furniture,

equipment, files, notes, tools, etc. 2 Items allowed on floor—trash can,

recycle bin, computer CPU 3 Computer & equipment cords are neat,

tied & properly secured 4 All equipment operational & maintained

(computer & mechanical) 5 Books, files, tools, fixtures, supplies,

chemicals are organized neatly 6 Area is free of debris and clean

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Spaghetti Diagram

CICS gateway

FAX

HTTP

Reports

Web

LegacyAcct’g &Ledges

E-mail

LSA/MTA

Reports

ReportsReports

FTP

COTS

Invoices

POTS

GWX

eLert

RTSS

NAVAL Support.com

Shipping

AOS

ADAMS

SILCFTP

Batch FTP

gateway

Customers Suppliers and Customers

Suppliers and Customers

VAN –Mailbox

Suppliers and Customers

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Brainstorming •  No bad ideas •  Quantity over quality •  Facilitate or Team •  Round-robin, Free-form •  Category technique •  “Parking Lot” •  Capture ideas on notes •  Use Affinity Diagram

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Pick Charts Ea

sy to

Im

plem

ent

Har

d to

Impl

emen

t

Big Pay-off

Implement Challenge

Possible Kill

Small Pay-off

Voting buttons

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Form Approval (measure Takt Time)

Queue Tim

e

Cycle Time Step 1

Touch Time and Delay Time

Queue Tim

e

Cycle Time Step 2

Touch Time and Delay Time

Queue Tim

e

Cycle Time Step 3

Touch Time and Delay Time

Touch Delay Touch Work Idle Work Touch Delay Touch

Form waits in admin’s in-basket

Admin reads form

Admin on other task

Admin assigns

form to you

Form waits in your in-basket

You read form,

request more info

You wait for data to be sent to

you

Form waits in admin’s in-basket You

receive data,

approve form, send

to admin

Admin reads form

Admin on other task

Admin sends form

Total Lead Time

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Potential Projects •  Contract terms and conditions reviews: Improve cycle times. •  IT Procurement Contracts •  Improve Negotiation Speeds •  Improve employee productivity (5S resource, storage rooms, cut

cycle times for various routine document handling—invoices reviews, approvals, weekly activity reports, etc.)

•  Develop litigation packages, patent application process •  Improve IP acquisition: obtain, manage and control more

efficiently •  Improve public release of data, or reduce data spills

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ACC Resources •  Seyfarth Shaw's Lean Approach •  Using Six Sigma & Other Programs to Streamline Law Department

Procedures •  Legal Services Management 3.0 (also referred to as Project

Management 101), Presentation, ACC January 2011. •  Stephanie J. Kelly and D. Lynn Kelley, The Success of One Legal

Department’s Six Sigma Initiative, ACC Docket (May 2010), 75-84. •  Jason Mark Anderman, The Future of Contracts Seen Through Six

Sigma, ACC Docket (September 2007): 41-48. •  Jason Anderson, Heather Boone, Nathan Nelson, Let’s Get

Organized – Using Six Sigma & Other Program to Streamline Law Department Procedures, Presentation, ACC Annual Meeting 2007.

•  Thomas L. Sager and Scott L. Winkelman, Six Sigma: Positioning for Competitive Advantage, ACCA Docket 19, no. 1 (2001): 18-27.

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Resources •  Wikipedia:http://en.wikipedia.org/wiki/Lean_manufacturing, cites

several additional sources. •  Lean Thinking: Banish Waste and Create Wealth in Your

Corporation, Revised and Updated (hardcover) ~ James P. Womack

•  The New Lean Pocket Guide XL (spiral-bound) ~ Don Tapping •  Practical Lean Accounting: A Proven System for Measuring and

Managing the Lean Enterprise (paperback) ~ Brian H. Maskell

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