LEAN THINKING
with
Six Sigma Cutting Costs, Improving Quality, & Speeding Delivery
by
Continuous 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 YOUVE 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 shouldnt be the first answer
Both Lean and Six Sigma are data driven
Lean is Team-based
Lean takes a Systems Approach
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 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 dont 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 reducing the 8 Wastes Improving process flow Increasing process speed Lean cannot always bring a process under statistical control
Lean focuses on:
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 is rapidly gaining popularity.
DO LEAN FIRST before SIX SIGMA 99% of the time
LEAN THINKING with SIX SIGMA
Complementary Tools
6 Sigma
OVERALL YIELD vs SIGMA
# of Steps
1 7 10 20 40 60 80 100 150 200 300 400 500 600 700 800 900 1000 1200 3000 17000 38000 70000 150000
3
93.32% 61.63 50.08 25.08 6.29 1.58 0.40 0.10 -----------------------------
(Distribution Shifted 1.5)
6
99.99966% 99.9976 99.9966 99.9932 99.9864 99.9796 99.9728 99.966 99.949 99.932 99.898 99.864 99.830 99.796 99.762 99.729 99.695 99.661 99.593 98.985 94.384 87.880 78.820 60.000
L E A N
s Le
wa s
s te
rs we fe
99.379% 95.733 93.96 88.29 77.94 68.81 60.75 53.64 39.38 28.77 15.43 8.28 4.44 2.38 1.28 0.69 0.37 0.20 0.06 -------
ps te
sv les -
99.9767% 99.839 99.768 99.536 99.074 98.614 98.156 97.70 96.61 95.45 93.26 91.11 89.02 86.97 84.97 83.02 81.11 79.24 75.88 50.15 1.91 0.01
ion t ria a
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 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. Dont 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
Lean tools ----------------------------------
Degree of Complexity
Ground Fruit
Logic and Intuition
LEAN THINKING with SIX SIGMA
Lets Talk Lean First
And you should
Do Lean First in most cases
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
15th Century The Republic of Venice
1905 Today and Tomorrow by Henry Ford
1945-1973 The Toyota Production System
1973 Oil Embargo
1974-2005 Books about : JIT Cellular Manufacturing Visual Factory Agile Manufacturing Flexible Manufacturing Synchronous Mfg Pull Production Rapid Continuous Improvement Kaizen Group Technology MIT The Machine That Changed the World Lean Thinking by James Womack
1973-2005 Boeing Danaher U.S. Navy U.S. Air Force Airbus Dell Computer Maytag Whirlpool McDonalds Microsoft And most companies that have tried Theory of Constraints and Six Sigma LEAN SIX SIGMA
W. Edwards Deming
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 Womacks 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 Quality, Cost, Delivery, Safety, and Morale (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 isnt willing to pay for. 2. Doesnt 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 9th Waste - HASTE
American (or Western adage):
Haste makes waste. If you dont 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
CUSTOMER ORDER
Waste
Lead-time
PRODUCT BUILT & SHIPPED
Lean Process
CUSTOMER ORDER PRODUCT BUILT & SHIPPED
Waste
Lead-time (Shorter)
LEAN THINKING with SIX SIGMA
Why Lean?
Typical Value Stream Ratio of Value-Added to Non-Value-Added Activity
97% NVA 3% VA
Wheres the Real Opportunity?
Most Process Improvement Teams Attack this . . . 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!
You can t be Lean unless your suppliers are Lean.
LEAN THINKING with SIX SIGMA
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. 2. 3. 4. 5. 6. 7. Layout (distance) Long set-up time Poor work methods Lack of training Functional organizations Technology Gaps 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. 2. 3. 4. 5. 6. 7. 8. SORTING COUNTING STACKING EXPEDITING TRANSFERRING CHECKING TRANSPORTING 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 Quality, Cost, Delivery; Improved employee Safety and Morale (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 in days, weeks or months, but plan 1- 6 years for the corporate transformation
Distribution System Kaizen
One-piece flow Pull/Kanban Takt time
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 process simplification, quality and maintenance
Standard Work: Operator Methods
-5S
Organize the workplace
LEAN THINKING with SIX SIGMA
The Lean Toolbox
1. 2. 3. 4. 5. 6. 7. 17. SIX SIGMA Value Stream Maps 18. Chaku-Chaku / Load-Load Rapid Improvement (Kaizen) Events 19. Heijunka / Load Leveling Education 20. Bottlenecks Employee Involvement 21. Point-of-Use Delivery Metrics and Alignment 22. DFMA Flow Cells 23. Control Charting Standard Work 24. Pareto Analysis Capacity Analysis 25. Histograms Takt Time / Cycle Time 26. Root Cause Analysis Standard Ops Worksheet 27. 5 Whys Production Control Board 28. Hypothesis Testing 5S / Visual Controls 29. Supply Chain Management Pull/Kanban Systems 30. Critical Chain Project Brainstorming Management Prioritization 31. 7 Quality Control Tools Spaghetti Chart 32. 7 Management & Planning Tools Poka-Yoke / Mistake Proofing 33. Nominal Group Technique Set-up Reduction Total Productive Maintenance with SIX 34. Production Process LEAN THINKING SIGMA Preparation (3P) Change Management
8. 9. 10. 11. 12. 13. 14. 15. 16.
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
VSM RIE Project Just Do It
Project Description: Team Leaders and Members: Dates:
Impact
Senior Management Sponsor: Value Stream Champion:
Difficulty
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
Suppliers Suppliers
Design Design
Procure Make Procure Make
Sell Sell
Customers Customers
A Primary Focus is TIME, Product and / or Service Flow Information Flow: Quickly SIGMA Directions In All LEAN THINKING with SIX
Define the Boundaries
start stop What keeps you awake at night?
suppliers
inputs
Value stream
outputs
customers
Where are the stakes in the ground that define your Value Stream boundaries?
Well focus our efforts between them!
LEAN THINKING with SIX SIGMA
Value $tream Map Finding the WA$TE
SUPPLIER
6 week forecast Weekly Fax
Production Control
MRP
90/60/30 day forecasts Daily Order Daily Ship Schedule
CUSTOMER
18400 pieces/month -12000- L - 6400- R Tray = 20 pieces 2 shifts
500 ft coils Tues. & Thurs.
Stampin g
Weekly Schedule
I
Coils 5 days
1 C/T=1 sec C/O=1 hour Uptime = 85% 27,600 *2 sec. avail.
I
4600 L 2400 R
S. Weld #1
I
1100 L 600R
S. Weld #2
I
1600 L 850R
Assy #1
I
1200 L 640R
Assy #2
1 C/T=62 sec C/O = 0 Uptime = 100% 27,600 *2 sec. avail.
1 C/T=40 sec C/O = 0 Uptime = 100% 27,600 *2 sec. avail.
I
2700 L 1440R
Shipping Staging
C/T=39 sec C/O=10 m Uptime = 100% 27,600 *2 sec. avail. 7.6d 1.8d 39 sec
C/T=46 sec C/O=10 m Uptime = 80% 27,600 *2 sec. avail. 2.7d 46 sec
.0014% VA
5 days 1 sec
2d 62 sec 40 sec
4.5d
PLT = 23.6 days
Process Time (VAT) = 188 sec.
LEAN THINKING with SIX SIGMA
Current State
Value Stream Map
AREA:
Harrier Maintenance Flight (500 Hour Minor)
BUSINESS CASE: VALUE STATEMENT: KEY REQUIREMENTS:
Current State - March '02
MEASUREMENTS: IDEAL STATE: ON DEMAND DEFECT FREE 1 BY 1 LOW EST COST
Improve Harrier Maintenance Flight Operating Performance
Identify, remove and repair failed, broken, or Core Manpower Requirements obsolete parts for Harrier W eapon Platform, Operational Risk functional test, and reapply finish
Quality and Flight Safety Cost of other Platforms
Productivity (hours per unit) Throughput Time On Time Delivery Floor Space
LEAN THINKING with SIX SIGMA
Future State
Implementation Pan
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 Distance traveled: 1.2 km
LEAN THINKING with SIX SIGMA
Spaghetti Charts Communication and Motion
LEAN THINKING with SIX SIGMA
IN CHARGE OF FOLLOWUP:
Project Name
Status of overall completion =
Plan Dates
% 28
ACTION
Who Start Finish
Comments
%Status
PROJECT SUMMARY:
Action Department
In charge of this item ASD / MZU
BEGIN
CCOMPL ET E
Comments
40
7/3/200 7
7/10/200 7
AAD to AJD:Follow-up this action item and report completion
100
AJD / 2 ASD / MZU 7/3/200 7 8/10/200 7
AAD to AJD: Make sure this is done MAS: You can decide where the location of the hotline be.
ASD / MZU
7/3/200 7
8/10/200 7
100
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. Its a STUDY.
LEAN THINKING with SIX SIGMA
Team Charter
VSM RIE Project Just Do It
Project Description: Team Leaders and Members: Dates:
Impact
Senior Management Sponsor: Value Stream Champion:
Difficulty
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 By: Team: 3rd Week Before Event:
(% COT: ) 2nd Week Before Event: (% COT: ) 1st Week Before Event: (% COT: )
Date:
Prep. % COT:
PREPARATION
1) Select the Value Stream from the Enterprise Transformation Plan. 2) Select the target area from Value Stream Analysis. 3) Determine the focus - which Lean tools will be applied? 4) Identify the Team Leader, Co-Leader, and Team Members. 5) Assure at least 1/3rd of participants are from the affected area. 6) Clear participants calendars for the Improvement Event Week. 7) Complete the Team Roster.
1) Identify the suppliers and inputs 2) Identify the customers and outputs 3) Identify the start / stop boundaries 4) Gather facts and data to populate starting numbers on Target Progress Report 5) Populate the Target Progress Report 6) Identify top three improvement metrics 7) Establish improvement targets on top three metrics, be aggressive 8) Meet with affected stakeholders to communicate Improvement Event schedule, metrics, targets, and tools to be applied 9) Set a flip chart up in affected area, ask stakeholders to put ideas for improvement on flip chart. Start Improvement Newspaper. 10) Capture flow stopper information from Production Control Boards 11) Confirm the availability of any special resources for: - equipment or furniture moves - computer / phone moves - 5S, shadowing, kitting - Production Control Boards 12) Obtain any special data collection instructions from your Coach such as: - Information from previous Improvement Events - Customer critical to quality issues - Safety data 13) Confirm all participants are still available for entire Event week
1) Communicate key metrics, targets, and tools to be applied to all team participants 2) Train team participants on improvement process and tools to be applied 3) Identify what "triggers" work 4) Double check availability of all resources: - equipment or furniture moves - computer or phone moves - 5S, shadowing, kitting - Production Control Boards 5) Communicate with affected area, review items listed on flip chart and ask for clarification, make sure these are added to Improvement Newspaper 6) Make sure team break-out area is ready: - flip charts, markers, post-its, VSA blanks - forms, stop watches 7) Make sure Process Champion is set to give opening remarks on Monday morning 8) Make sure Process Champion is available for Team Leader Meetings Monday Wednesday 9) Schedule Final Presentation with Process Champion and appropriate leadership 10) Plan working lunches 11)Confirm all team participants are going to be available full time for entire event 12) Confirm Target Progress Report and Team Roster are complete
LEAN THINKING with SIX SIGMA
RIE Daily Checklist
Rapid Improvement Events
TEAM DAILY CHECKLIST
Day One.
1. Review team goals and objectives, create Day 1 plan. 2. Meet with Cell Stakeholders and review goals. 3. Before Data, Documentation and "Tools" TAKT Time Calculation Before Time Observations Before Cycle Time Bar Charts (Loading Diagrams) Before Standard Work Sheet/Cell Layout Before WIP Count ($ and pieces) Before 6S Audit Before Safety Audit Before Work Combination Sheets (one per operator) 4. Take a "Waste Walk", to further identify opportunities.
Day Two.
1. Identify wastes to attack. 2. After TAKT time/Cycle time bar charts. (loading diagram) 3. Create plan for new cell layout. 4. Meet with Stakeholders, review progress and plans solicit ideas and concerns. 5. After standard work combination sheets.
Day Three.
1. Train Stakeholders on new cell layout and standard work. 2. Assign a team member to each Stakeholder. 3. Run new cell. 4. Fix problems immediately. 5. Create production control board. 6. Work on 6-S and safety issues.
Day Four.
1. Train Stakeholders on new cell layout and standard work 2. Assign a team member to each Stakeholder. 3. Run new cell. 4. Create/post Key Point, Work Combination Sheets, Standard Work Sheet, Production Control Board, and Kaizen Newspaper. 5. Fix problems immediately. 6. After 6-S and safety audits. 7. Off shop floor by 1:00. 8. After area pictures and Team picture. 9. Prepare final presentation. 10. Complete Team/Event binder. 11. 6-S meeting area. 12. Inventory kit boxes and find missing articles.
6. Notify support groups by 2.00 PM of required support. 7. Daily recap.
7. Create/post Key Point, Work Combination Sheets, Standard Work Sheet, Production Control Board, and Kaizen Newspaper. 8. Daily recap. 9. Create daily plan for Thursday. 10. Team Leader/Co Leader. How late do we stay? 11. Daily Team Leader meeting. 12. 6-S meeting area.
5. Daily recap. 6. Meet with Stakeholders and review progress.ideas. 7. Create daily plan for Tuesday. 8. Team Leader/Co-Leader. How late do we stay?
8. Create daily plan for Wednesday. 9. Team Leader/Co Leader. How late do we stay? 10. Daily Team Leader meeting. 11. 6-S meeting area.
9. Daily Team Leader meeting. 12. Implement plan/create cell. 10. 6-S meeting area.
** Team Leaders need to assign action items to specific people on the teams and require follow up reports on progress at a minimum of two hour increments.
** Team Leaders need to assign action items to specific people on the teams and require follow up reports on LEAN THINKING progress at a minimum of two hour increments.
** Team Leaders need to assign action items to specific people on the teams and require follow up reports on progress at a minimum with SIXincrements. SIGMA of two hour
** Team Leaders need to assign action items to specific people on the teams and require follow up reports on progress at a minimum 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 3Ss. 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 5Ss
1. Sort
Needed from the unneeded
Low Level of 5S
2. Shine
Clean, scrub, and fix
3. Set in order
A place for everything
High Level of 5S
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
Shadowing
Labeling
Foot-printing
LEAN THINKING with SIX SIGMA
Striping
Color Schemes
Production Control Boards
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. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13.
Clock Traffic lights with a timer Traffic Lines/ lights/signs Sounds announcing break time Call to Prayer Score boards at sporting events Arrival/Departure boards in airports Lights indicating machine or process condition Lights and siren on emergency vehicles Gauges on medical & industrial equipment Big teeth on a snarling lion Take-a-Number systems Colored caps on milk bottles
LEAN THINKING with SIX SIGMA
Point-of-Use Strategy: 7 Elements of Surgery
Information
Hand Tools
Instruments
Power Tools
Supplies
7 Elements Of Surgery
Fixtures Fasteners
LEAN THINKING with SIX SIGMA
Supermarket Pull System
Kanban Kanban
Supplying Process
product
product
Customer Process
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
Dept 1
Traditional flow
Dept 2
DONE OUT OUT IN IN
Cellular flow
4 3
IN
Dept 3 Dept 4
OUT IN IN
Demand paced production Value-adding steps in order
OUT
No stops, piles, or back-ups
DONE
Flexible 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. 2. 3. Setup Reduction Standard Operations Times
Operator Cycle Time Product Lead Time Waste Time Takt Time (customer driven)
4. 5. 6. 7. 8. 9.
Total Productive Maintenance (TPM) Production Preparation Process (PPP) Bottleneck reduction Mistake proofing (Poke Yoke) (Example: mobile SIM card) 5 Whys 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
FLOW:
Equipment Kaizen (TPM) 3P, Autonomation Leveled Production Line Balancing
Reduce: lot sizes, setup times, lead times,
operator cycle times, inventory
AWARENESS
AIWs (Gemba Kaizen) Factory Layout Kaizen process simplification, quality and maintenance
Standard Work: Operator Methods
-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. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.
Cycle Time Inventory (amount, turn rate, IRA) Productivity Square Feet (foot print) Set-up Time Product Lead Time Lean is data driven People Travel Product Travel Volume Crew Size 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. Dont 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 LEAN THINKING with SIX SIGMA project.
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
Traditional Situation
Increasing resistance Neutral Increasing cooperation Increasing resistance
Leading Change
Neutral Increasing cooperation Critical mass
Anchor draggers "Uncommitted Mass"
Early adopters Strong pull from early adopters
You cannot ignore the anchor draggers!
Management attention
Management attention
LEAN managing resistance, The focal point really shouldnt be onTHINKING with SIX SIGMA but on getting people 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 LEAN THINKING 92% reduction in line move time with SIX SIGMA
You never get Lean, you only get Leaner
Some Lean Successes
Helicopter BCD Check: Reduced TAT from 2814 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: rashadzakieh@hotmail.com
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
what is important to the customer?: Project Selection Team Formation Establish Goal
the process: Analyze Data Identify Root Causes
the process gains: Ensure Solution is Sustained
the process performance measures: how well we are doing?: Collect Data Construct Process Flow Validate Measurement System
LEAN THINKING with SIX SIGMA
Prioritize root causes Innovate pilot solutions Validate the improvement
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
Traditional Cost of Poor Quality (COPQ)
Rework Field Modifications Warranty Penalties & damages (measured) Rejects
Inspection
Hidden Cost of Poor Quality (COPQ) times Long cycle
Margin slippages More receivables Longer Set-ups Expediting costs
(intangible) (measurable)
Lost sales Overtime Late delivery Travel & Living Expenses
Lost Opportunity
Excess inventory Lengthy Installs Sales compromises Lost Customer Loyalty
Customer Productivity Loss Engineering Change Orders 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 Specification Limit (customer) Upper Specification Limit (customer)
Target
Customers have a target in mind, but will allow some variation within the Spec Range
LEAN THINKING with SIX SIGMA
What Does Sigma Level Mean?
Example
Lower Specification Limit
Upper Specification Limit
Target
Defects
Actual Measurement has Considerable Variation Defects - Resulting in Scrap, Waste, Late Deliveries, and Customer Dissatisfaction
LEAN THINKING with SIX SIGMA
What Does Sigma Level Mean?
Lower Specification Limit
Target
Upper Specification Limit
Defects
How Capable is our Process to Produce within Spec? Defects
2
Sigma Level 2 Defects Per Mill. 308,500 % In Spec. 69.1
On Average its OK -- its a Variation issue On Average its OK its a Variation issue
BEWARE OF AVERAGES
LEAN THINKING with SIX SIGMA
What Does Sigma Level Mean?
Lower Specification Limit
Upper Specification Limit
Reducing Variation is Clearly the Key to Improving Process Capability
Sigma Level 3
Defects Per Mill. 66,800
% In Spec. 93.3
LEAN THINKING with SIX SIGMA
What Does Sigma Level Mean?
Causes of Variation Include a Variety of Factors, such as: 1. Machines 2. People 3. Material 4. Environment 5. No Standard Work.
Lower Specification Limit
Upper Specification Limit
Sigma Level 4
Defects Per Mill. 6,200
% In Spec. 99.4
LEAN THINKING with SIX SIGMA
What Does Sigma Level Mean?
Variation Causes Errors, which Cause Defects, which Lead to Rework, and to Processes which are not Stable Reliable, Repeatable, and Predictable.
Lower Specification Limit
Upper Specification Limit
Sigma Level 5
Defects Per Mill. 233
% In Spec. 99.98
LEAN THINKING with SIX SIGMA
What Does Sigma Level Mean?
Reducing Variation Reduces Errors, and the Resulting Defects and Rework, and therefore leads to Improved Process Capability
Lower Specification Limit
Upper Specification Limit
Sigma Level 6
Defects Per Mill. 3.4
% In Spec. 99.9997
LEAN THINKING with SIX SIGMA
Variation = Unpredictable Processes
Work Order Process Mean Improved Process Existing Process
1
Output Variation in weeks
50
100
Contracting process Material Delivery process Time to sink a well Wifes shopping bill Wifes shopping time
Customers Remember the Extremes (Variation), not the Average
LEAN THINKING with SIX SIGMA
ENTITLEMENT
Improved Process
Upper Specification Limit
Mean
Entitlement
Existing Process
1
Output Variation in weeks
50
100
LEAN THINKING with SIX SIGMA LSS Helps Us Consistently Deliver the Best We Can Do.
What Does Sigma Level Mean?
sure Mea y is a bilit evel a L ss Capa Sigm roce of P
Lower Specification Limit
Upper Specification Limit
Sigma Level 2 3 4 5 6
Defects Per Mill. 308,500 66,800 6,200 233
% In Spec. 69.1 93.3 99.4 99.98 99.9997
LEAN THINKING with SIX SIGMA
3.4
Practical Meaning of Six Sigma
3.8-Sigma 3.8-Sigma 99% Good 99% Good 6-Sigma 6-Sigma 99.99966% Good 99.99966% Good
3.4 defects per million opportunities
20,000 lost articles of mail per hour
Seven articles lost per hour
5,000 incorrect surgical operations per week Two short or long landings at most major airports each day
1.7 incorrect operations per week
One short or long landing every five years
200,000 wrong drug prescriptions each year
68 wrong drug prescriptions per year
LEAN THINKING with SIX SIGMA
Six Sigma Project Management Checklist Define Define
Identify Sponsor and other key stakeholders Form project team Team leader Team members Tour process Clarify project Problem statement Goal statement Process output = Y Define process boundaries High level map (SIPOC) Define project boundaries Resources Authority Determine project timeline Identify CTQ Customer Requirements Define the Defect Define defect measure Develop estimate of potential financial benefit if project goal is achieved Gain Sponsor Approval of Project Charter Identify Pull and Push Leveraging opportunities
Measure Measure
Create Fishbone Tie to defined defect Collect Data Ys (results) with Xs (data tags) Evaluate Measurement Systems Gage R&R, Understand detailed process Detailed process map w/ rework loops Describe Process Numerical statistics Graphs: Time, Hist., Pareto, etc. Create control chart Establish Process Capability DPMO or % Defects Calculate Z Update Charter as required Develop Define/Measure report out Standard template
Analyze Analyze
Analyze Process Flow Critical Path Value-added steps Non valueadded steps Opportunities Analyze Data Graphical tools Hypothesis Tests Interrelationship Digraph (if appropriate.) Regression analysis Identify and collect additional required data Identify significant Xs Tie to root cause analysis Draw conclusions Perform FMEA Update charter as required Develop Analyze report out Standard template
Improve Improve
Develop solution options Improve control of significant root causes Re-design process to obtain required capability Perform DOE as required Evaluate options and select final solution Prioritization matrix Determine measurement system for improved process Create implementation plan Update FMEA Update financial benefits statement Contact Six Sigma OCD for concurrence Obtain buy-in / support for improvement actions Conduct pilot / testing to verify results Implement improvements Collect data to verify improvement Communicate results Update Charter as required Develop Improve report out For Sponsor
Control Control
Perform Capability Analysis of improved process Develop and Implement a Control Plan Complete Project Closure Package Update financial benefits statement as required Get OCD focal final evaluation List best practices Identify lessons learned Use SPC Charts Hand off project to process owner Create follow up action plan Develop Final report out Standard template
Project Champion
Master Black Belt
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 Full-Time Resources Discipline to the Process
Value Stream Penetration Multiple Passes
Results Critical Mass Internal Experts Self-sustaining Lean Culture
DEPLOYMENT METRICS
LEAN THINKING with SIX SIGMA
Leaderships Role
Senior Leadership
1. 2. Create the Vision Where are we going and why are we going there? Align the Organization Goals and Objectives One Plan One Initiative Participate in the Process Dont just talk it , WALK IT Commit Resources Right quantity and caliber Educate the Workforce Communicate Vision, Results, Lessons Learned
LEAN THINKING with SIX SIGMA
3. 4. 5. 6.
Leaderships Role
The Managers 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 tomorrows 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 Defects, cost, l time, waste Lean or Six Sigma Breakthrough
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
