Post on 14-Sep-2014
description
Julian Kalac, P.Eng Lean Six Sigma Master Black Belt
June 2012
Focus and align the flow of ideas, processes, performance and profitability within the business
Learn how to find new opportunities, organize the concepts learned and prioritize and/or defer others
Objectives:
Enable more product launches with shorter lead times
Increase first-time quality and on-time deliveries
Enhance and sustain productivity improvements ◦ Output and “Value-add” per worker ◦ Output and “Value-add” per dollar invested
What:
A process of ongoing, non-static, constantly renewed mindset of adding business value and increased productivity
How:
Trough demonstrated creativity and significant changes getting ideas & turning them into
reality
Where:
in everything we do, enterprise-wide
Risk & Reward
Continuous Improvement •Everyday culture of change in how and what we do •Focus on maintaining & improving process precision, accuracy and discipline •Often savings are not strictly monitored but just put back into the business •Can support & narrow Breakthrough Innov.
Amount of Resources and Activity
Incremental Innovation •Relatively small improvements that are faster, better cheaper, •Savings show up in bottom & top line
Distinctive Innovation •Significant advances and improvements by extending existing technologies/approaches •Adapting “other industry/sector technologies/approaches •Example: “Lean”/JIT/Single-piece-flow/Pull Systems in health care
Breakthrough & Disruptive Innovation •Fundamentally new technologies/approaches •Implementing things previously thought to be not possible •Often a birthplace of Distinctive & Incremental Innovation •Can fuel and clash with Conti. Impr. and process discipline
Supplier “Push”
“Customers gambling in Nevada have figured out how to develop an application for counting cards beyond what Apple imagined”
Customer “Pull”
• New colours • Video features • More memory • Longer battery life • Predictive text
Ideas
Inventions
Innovation
Operations
Production Service
The Ideas-Inventions-Innovation-Operations-Service (IIIOS) Roadmap:
Sales & Marketing
Research & Development
Product Development
Operations
Production
Customer Service
The Hydrogenics Business Flow:
Productive creativity and focused process discipline will lead to a successful sustainable harvest of results
•To help explain the Toyota Production System to employees and suppliers, the “House of Toyota” graphic was created by Taiichi Ohno and Eiji Toyoda. •They chose the house shape because it was a familiar one – and also conveyed stability. •The roof contains the primary goals of TPS: superior quality, cost and delivery through waste elimination
Change Management Teams
TPM JIT
Point-of-Use
Poka-yoke
Pull System and Kanban Cellular and Flow
Autonomation
Standard Work
Self inspection
Visual Workplace
Quick Changeover
Layout
Batch Size Reduction
5S VSM
Continuous Improvement Kaizen Blitz
“Future competition will not be between products and services… … it will be between processes.”
Dr. Robert Gee, National Graduate School
“In order to develop a culture that consistently improves performance, you have to focus not just on the end result (solution focus) but also on how you get there (process focus).” Michael Kukhta, Master Black Belt
PDSA Cycle:
Plan, Do, Study, Act
Plan a step
Take a step
Study the outcome
What worked?
What didn’t work?
What did we learn?
Act on the difference between what you expected & what you got
Keep learning
This Way:
Plan
Do
Act
Check
Plan
Do
Re-Act
Check
Not this Way:
Dr Edwards Demming:
Lack of knowledge… that is the problem
There is no substitute for knowledge
Study
Analyze
Study Analyze
From Dr. Joseph Juran’s teaching: Removal of Special Cause only
brings to system back to where it should have been in the first place
The important problems of improvement commence once you achieve statistical control
“There is here, the same widespread unsupported assumption that the bulk of defects are operator controllable, and that if operators would only put their backs in to it, the plant’s quality problems would shrink materially” ◦ (J. Juran, Industrial Quality Control 1966)
Juran’s Trilogy:
1) Quality Planning
Develop Standards, Designs
Processes & Systems that
enable the possibility of
compliance
2) Quality Compliance
Use the Processes & Systems
to measure performance
to Standards
3) Quality Improvement
Improve Performance to
standards (compliance)
Improve Standards, Designs,
Processes & Systems
SCOR Model
Customer’s Customer
Supplier’s Supplier
Supplier
Internal or External
Customer
Internal or External
Your Company
Plan
Make Deliver Source Make / Repair
Deliver Make Source Deliver Source Deliver Source
Return Return Return Return Return Return Return Return
Plan Plan
Provides Framework for your Transformation / Improvement Projects. • Defining the boundaries / scope of the supply chain . • Evaluate the supply chain’s strengths and weaknesses. • Industry benchmarks, standardized terms, metrics,
Enables a total enterprise view of a supply chain
The systematic elimination of waste and re-alignment of resources to deliver value to the customer faster, better, & more consistently
Lean also is: ◦ Pursuit of excellence
◦ Continuous Improvement of performance and quality
◦ .
◦ Increasing inventory “turns” and throughput
◦ Simplifying and redefining processes
◦ Measuring & monitoring processes
◦ Empowering the workforce
Leading to Leading to Eliminate
Waste Reduced Cycle
Times Increased Capacity
Focus: Eliminate waste, non-value add steps, process constraints and bottle necks that cause problems in work throughput
Approach: Intuitive and broad - “inch-deep, mile wide”
The Five Principles of “Lean Thinking”
1. Define value from the perspective of the Customer
2. Map the value stream
3. Get the stream to “flow” by eliminating waste
4. Allow the customer to “pull” value from the stream
5. Pursue perfection (continual improvement)
MEASURE
•Map/measure the process
•Collect lots of data
ANALYZE •Organize and analyze the data and information to Identify failure modes, problems, root causes
CONTROL •Maintain, monitor and control variation •Preventively fix root causes
IMPROVE •Plan, apply, deploy Improvement Tools •Correctively fix failure modes
DEFINE •Identify standards, metrics, objectives, CUSTOMER PROBLEMS
Define
Measure
Analyze Improve
Control Results
Define
Measure
Analyze Improve
Control Results
σ Use data-driven, measurement-based, statistical methods σ Think critically, deeply and analytically to improve performance σ Eliminate non critical business issues and concerns
σ Focus: Surgical “inch-wide, mile-deep” investigation and resolution σ Approach:
σ Solve problems at the system and root cause level σ Relentlessly pursue drastic reductions in variation then control and manage
whatever variation is left over
Applied projects following the DMAIC Model
In the 1980’s, Engineers and Management at Intel and Motorola - realized that variance reduction and lower defect rates were one of the keys to the success of Japanese competitors
Is “Six Sigma Quality” – 3 DPM – good enough for your process? (e.g. producing semiconductors?)
Dr. Mikel Harry researched these successes in variance reduction and formed them with others into the “Six Sigma” programs that we are familiar with today
“Sigma” Quality Level 1 2 3 4 5 6 7
Cost of Poor
Quality
(COPQ)
$’s
?
% First Pass Yield (FPY) 68 95 99
99
.977
99
.999
66
99
.379
Defects/million (DPM) 690K 308K 67K 6K 230 3.4
“Sigma” Quality Level 1 2 3 4 5 6 7
Cost of Poor
Quality
(COPQ)
$’s
?
% First Pass Yield (FPY) 68 95 99
99
.977
99
.999
66
99
.379
Defects/million (DPM) 690K 308K 67K 6K 230 3.4
Accurate Precise
Processes Processes Process Start
Process Finish
Process Steps
Processes Processes
Organization Customers End-use Customers
Suppliers Sub-
Suppliers
Process Steps
Return Return
Plan
Make Deliver Source Make/Repair
Deliver Make Source Deliver Source Deliver Source
Return Return Return Return Return Return
SCOR Supply Chain Model
Single Piece Flow Just-In-Time Eliminate Waste
•Process parts one-at-a-
time or in small lots
instead of in large
batches or economies of
scale
•Quick changeovers
•Balanced and
continuous flows instead
of stop and start
processing
•Have just the right
amount of inventory you
need, when you need it,
where you need it
•Optimize the amount
of inventory required
•Ensure that your
resources are ready to
support the flow
•Never knowingly pass
on a defect
•Improve the capability
of your processes
•Fix failure modes
when they occur
•Determine and resolve
the deeper root causes
= =
The Toyota Production System
Model by Michael Kukhta Reference: Senji Niwa, from the
Shingijutsu Organization. Niwa-san also worked directly for
Toyota’s Taiichi Ohno (TPS creator) for 18 years.
“Classic Lean” Strength
“Supply Chain Management” Strength
“Classic Six Sigma” Strength
Numbers, words, quantities, values stored sitting in piles or queues waiting for future use
Charts, summaries, spread sheets, etc. that organize the data
Presentations, plans and tools that explain and communicate the information
Processes, organizations and team using the information to improve, manage, build systems and develop cultures
Push the data “up” to become Wise
Always loop back to check the data
Wisdom
Knowledge
Data
Information
Where are you looking from?
The WISDOM TOWER: Changing Perspectives
2) Clearly Define your problem Example: Too many mistakes in purchase request specifications are causing rework rates of 34%, high costs and late deliveries (less than 50% on time) to our customers
1) Find:
•Customer Issues •Performance Reviews •Meetings •New Projects •Failures, Re-work •Projects •Continuous improvement activities •Champions •Stakeholders •Employees •SCOR Maps •Research •Brainstorm •Wait until the crisis hits you •Value Stream Maps
3) Clearly State the Initial Charter for your project (Set targets and timelines!) Example: This first phase of this project – by 3Q 2004 - will identify problems and root causes in the purchase request process, target first pass yield rates of 95%, target a 50% reduction in the Cost Of Poor Quality and increase on-time deliveries to our customers to greater than 90%
4) Link improvement targets to customer needs and organizational objectives
5) Create a Project Charter - Resources, Milestones
What are we Mapping? The flow or path of: ◦ People, Parts, Paper, Information, Electrons (IT, networks, computers)
What status is the Map we are making?
◦ “As Was” – a historical reference or how the process used to be
◦ “Should Be” – the way documentation says it is supposed to be or the way you think it is working
◦ “As Is” or “Current State” - an accurate reflection of how the process is actually working. You must “walk” the process on the ground at the working level to validate the “real” way
◦ “Future State” – a projection of how you would like the process to work ◦ “Utopian State” – the way the process could work if there were no restrictions or
boundaries on time and resources
Represents...
Some Examples are...
This Symbol….
Start / Stop
* Receive Trouble Report * System Operable
Decision Point
Approve / Disapprove Accept / Reject Yes / No
Activity
Process Step or Activity
Connector (to another page or part of the diagram)
A
A
B
Represents direction of flow
Enjoy!
Fill kettle with water &
plug in
Get coffee from cupboard
I’m going to have a
coffee
Instant or
Brewed
Put coffee into mug
Get mug from cupboard
Pour hot water into mug
A
Add cream & sugar
Is it to
taste ?
Yes
No
Instant Brewed
Process Flow Diagram: Morning Coffee Flow Chart
High-Level Process Map
Can show the link from suppliers outside your organization to the customers you deliver your product or service to
Mid-Level Process Map
Can show your organization within the larger organization you work in
Detail-Level Process Map
Show s the process within your organization that you wish to investigate further
Stop
Start Stop
Start
Start
Stop
Stop
Product and Services
Cash/Funding
Information
Customer’s
CustomerSupplier’s
Supplier
SupplierSupplier CustomerCustomerYour Company
PlanPlan
Make DeliverSourceSource Make /
RepairDeliverMakeSourceDeliver SourceDeliverDeliverSource
ReturnReturn ReturnReturn ReturnReturn ReturnReturn ReturnReturn ReturnReturn ReturnReturn ReturnReturn
PlanPlan PlanPlan
VA/NVA Ratio= 46%
DPU = ____
RTYield = _____
SCORE CARD:
I’m going to
have coffee
Fill c.
maker
with
water
Scoop
Coffee
into
c. maker
Get &
place
Filter in
c. maker
Drink
coffee
Is
taste
OK
Brew
coffee
Pour c.
into cup
Add
cream &
sugar
Water Supply
Process Shopping
Process
Electricity
Supply
Process
Eating
Equipment
Supply
Process Tasting
Process
Housekeeping Processes NVA = Non-value Added Time
VA = Value Added Time
VA Time
NVA Time
Temp of Water= ___
Quality of Water= ___
Pressure of Water= ___
Amount of Coffee= ___
Quality of Coffee= ___
Type of Coffee= ___
Defective Coffee= ___
60 sec 30 sec 60 sec 360 sec 10 sec 60 sec
10 sec 10 sec 5 sec 600 sec 30 sec
Is your error in the process or in the way you measure it? Could it be that you actually are “good” but the error in the measurement
system shows that you are not “good”?
Overall Variation
Occurrence-to-
Occurrence ( or Piece-
to-Piece) Variation
Measurement System Variation
Repeatability:
Variation due to gage
or measurement tool
Reproducibility:
Variation due to people or
operators who are measuring
3) Who?
4) When?
5) How Much?
6) How?
2) Where?
1) What?
6) How will you collect it? Sample Data Collection sheet
Data Collection Sheet
Process Name: _____________
Process Step: _____________
Location of Measurements: _____________
Measurement Tool Used: ______________
Measurement System Error: _____________
Measurement Number
Value Units (e.g. inches)
Time of Measurement
Person who measured
1
2
3
4
5
Data Collection Sheet
Create a Data Collection Plan:
The Seven “Muda” (the Japanese word for any activity that consumes resources but adds not value; also known as “waste”)
◦ According to Taiichi Ohno’s enumeration of the types of waste commonly found in physical production of tasks and conversion of activity into services
1. Overproducing ahead of demand
2. Waiting for the next process step
3. Unnecessary transport of materials [and information]
4. Over-processing of parts due to poor tool and product design [extra and over processing documents and approvals]
5. Inventories [of parts, data, information, people, electrons, cash] more than the absolute minimum
6. Unnecessary movement of people [parts, data, information, electrons, cash], during the course of work or processing (looking for things, drawings, technical help, etc.)
7. Production of defective parts [and services]
8. Not Fully Utilizing your People : (The Greatest Waste of All) ◦ Under-Utilizing:
Not applying and harvesting the full capabilities of your employees
Training but not using the capabilities learned Expecting high-performance from untrained or inadequately
trained people ◦ Over utilizing and over-relying on a few employees
Over relying on a select few High overtime\Incessantly increasing time demands Unsteady flow and non-level loaded work- hurry-up and
wait High variation in processes – pressure and stress for people
◦ Uncertainty and conflict versus confidence and trust in the workplace ◦ How are you managing changing business and economic climate? ◦ The organizational culture is different, even within the parts of an organization:
Are you thriving, striving, dormant or dying?
Observation
Ind
ivid
ua
l V
alu
e
464136312621161161
200
150
100
50
0
_X=100.4
UCL=114.0
LCL=86.8
Observation
Ind
ivid
ua
l V
alu
e
464136312621161161
200
150
100
50
0
_X=98.7
UCL=187.5
LCL=9.8
1
Process A shows controlled variation Process B shows uncontrolled variation
A B
Common Causes •Consistent •Often
Special Causes •Sporadic •Sudden
Time Scale
Histogram Frequency
LSL USL
2 4 6 8 10 12 14 16 18 20 y
Unit of time e.g. hours, months
a bar chart for numerical categories bars need not be in descending order shape provides a form of distribution of data central tendency and variability are easily estimated specification limits can be superimposed to estimate process capability
•time •distance •dimension
A method to display the “vital few” from the “trivial many.” These charts are based on the Pareto Principle – 20% of the problems have 80% of the impact. The 20% represents the “vital few.” The Pareto chart helps you to arrange data in order of priority or importance.
90
30
20 10 5
Freq
uenc
y
Categories
Perc
enta
ge
75%
25%
50%
20
180
140
100
60
TITLE
n = sample size
(time period)
LEGEND
REFERENCE INFO
date
initials
source
100 %
Types of Correlation
Strong Weak None
Positive
Negative
Y=f(x) Y=f(x) Y=f(x)
x x x
Method
Time Other
Environment
Criteria
Card Face Down and On Target
EFFECT CAUSES
“Card Drop” Process where the desired output is to drop cards face down onto a target
WHY DOES IT TAKE SO LONG TO MASK PART?
TAPE DOES
NOT STICK
WHY DOES TAPE NOT
STICK?
PART HAS SOAP
RESIDUE
WHY IS THERE SOAP
RESIDUE?
RINSE CYCLE INADEQUATE
POWER WASHER RINSE
CYCLE BROKEN
WHY IS POWER WASHER BROKEN?
WHY IS RINSE CYCLE
INADEQUATE?
OLD MACHINE NOT REPLACED
WHY IS OLD MACHINE NOT
REPLACED
CONGRESSIONAL BUDGET PROCESS IS
FLAWED
Overview of How FMEA Works
Process Step or Input
Potential Failure Mode
Potential Failure Effects
Potential Causes
of Failures
Current Process Controls
Severity Rating (SEV)
Occur-rence Rating (OCC)
Indetect-ability Rating (DET)
Risk Priority Number
(RPN)
What
is the
Input?
What
can go
wrong
with
the
Input?
What
is the
Effec
t on
the
Out-
puts?
How
bad is
it?
What are
the
Causes?
How
often
do they
Occur?
How can
they be
found or
prevent-
ed?
How
well can
they be
prevent
-ed? Where is
our
greatest
Risk?
Item
No. Problem/Opportunity Benefit
Person(s)
Responsible
Due
Date
%
Complete Comments
1
2
3
4
5
6
7
8
Kaizen Event Newspaper
Team: Kaizen Event:
Team/Work Group Members
Wwww, Xxxx, Yyyy, Zzzz
Updated:___/___/___
Display Board for _____ Team
Pareto Diagram Frequency
Histogram Frequency
LSL USL
y
Control Chart UCL
CENTRELINE
LCL
Seiri Seiton Seison Seiketsu Shitsuke Sort Straighten Shine Standardize Sustain
( )
Separate the necessary from the unnecessary
Organize in your layout in a logical sequence
Clean, fix and change your workplace
Build systems and processes to support 5S activities
Ensure that the standardized methods, tasks and techniques are followed
Organize by
frequency
of use
Set
Baseline
Contin-
uously
Improve
Keep?
Place in
Local 5S
Holding
Area
Place in
“Last Chance”
5S Holding Area
Record,
Archive
records
Clean, Label, Tidy
Fix, Map, Paint, File,
Systematize,
Standard
Operating
Procedures
Audit,
Monitor
No
Yes …improve our
workplace
organization
and safety
We want
to:
Allocate
time &
Resources
Develop
5S Plans
&
Standards
Separate
/Sort Keep?
Destroy,
Scrap,
Dispose
No
Yes
Level 1 (Workstation Achievements) ◦ Data and reports (hard & soft) are sorted into piles, sections, drawers and
multiple file locations: Cluttered
Level 2 (Workstation Achievements) ◦ Data & reports are sorted into files, binders and single locations ◦ Metrics, basic labelling, some visual controls ◦ Appearance is cleaner and more organized
Level 3 (Workstation Achievements) ◦ All files, data and reports are organize and labelled ◦ Metrics, information and 5S maps are available and posted ◦ Maintenance of 5S activities, audits of 5S performance
Level 4 (Work Group Achievements) ◦ Common standards for metrics, filing, labelling, file naming ◦ Simple, clear and effective Visual Controls & Driver Measure Boards ◦ Maintenance of Work Group 5S activities, audits of 5S performance
Level 5 (Site and Business Unit (BU) Achievements) ◦ Common standards for metrics, filing, labelling, file naming ◦ Simple, clear and effective Visual Controls ◦ Maintenance of 5S activities, 5S audits
Can usually find
things
Can find things in
a reasonable
amount of time
Can find any file
or doc. In 30
seconds
Close colleagues
can find any file
or doc. In 30
seconds
Any colleague
can find any file
or doc. In 30
seconds
1. Specify value from the standpoint of the end customer by product family.
2. Identify all the steps in the value stream for each product family, eliminating every step and every action and every practice that does not create value.
3. Make the remaining value-creating steps occur in a tight and integrated sequence so the product will flow smoothly toward the customer.
4. As flow is introduced, let customers pull value from the next upstream activity.
5. As these steps lead to greater transparency, enabling managers and teams to eliminate further waste, pursue perfection through continuous improvement.
Cycle Time is the actual production rate – It is the time
between two successive finished items coming out of your production cell.
Cycle Time is dictated by the slowest (longest) operation
in the cell.
40 min
20 min
25 min
15 min
30 min
1
5 4
3
2
•What operation controls the cycle? •What is the Critical Path? •How can you relieve or shift the bottleneck?
Source: Improve Phase 26jul07
Bottleneck ◦ The point which is currently reducing the flow or slowing
the entire process
◦ A managed buffer before a bottleneck is necessary ◦ A bottleneck WILL exist in every process
◦ Bottlenecks move ! ◦ High WIP can mask the bottleneck
◦ Flex to the bottleneck ◦ The people working at the bottleneck take breaks, not the
bottleneck
Pull Systems
Production scheduling method used to link downstream activities to upstream activities
Work begins based upon a demand signal (kanban) from a downstream customer, either internal or external
Avoids overproduction, work backlog, and disconnects within a process
Nothing is produced until the downstream customer signals a need
Takt Time
◦ Drum beat of production
◦ Based on actual internal or external demand
Available production time
customer demand
Takt Time =
Kanban ◦ A signal to produce
◦ An empty square, bin, shelf, cart, or kanban card ◦ Response time should be worked out & agreed in advance
◦ Compensates for inability to pull ◦ Can extend through electronic notification to suppliers
using automatic messaging and triggers
Setup Time ◦ Tool changes & preparation to process first piece
◦ Starts when last piece of previous job is complete; ends when first good piece of next job is complete
Internal set-up: While machine is shut-down ◦ Strive to minimize this as process is not producing parts
External set-up: While machine is working ◦ Maximize through kitting, point-0f use tools/parts and
preparation
Mistake proofing ◦ Eliminate/minimize chance for human error ◦ Poka yoke =
to avoid (yokeru) inadvertent errors (poka)
◦ Detection Poka yoke Notifies of imminent process failure but requires
operator interaction to avoid mistakes
◦ Prevention Poka Yoke Stops the process before failures occur
Does not allow defects to pass through the process
Elements of Lead Time ◦ Lead Time = total process time from initiation to design to
build to ship to payment
◦ Batch & Queue – Accumulate orders, then wait to be processed
◦ Setup time – prepare to process next job
◦ Run time – processing time per unit
Often less than 1% of cycle time
Only value added step of Lead time
◦A cell organizes equipment and operations in a process sequence for a specific output
◦This is opposite “Process centered Islands” where equipment / activities are grouped by functional operations
Bottleneck Management: • Maintain buffer in front of
bottleneck • (never starve the bottleneck
!) • Improve bottleneck operation • Cross train on bottleneck • Creates a visual work place • Continuous Improvement • Cell technical & logistical
support • Balance activities / operations • Focus on balanced, continuous
pull through the cell
•Only after specifying value and mapping the stream can lean thinkers implement the third principle of making the remaining, value-creating steps flow.
•Such a shift often requires a fundamental shift in thinking for everyone involved, as functions and departments that once served as the categories for organizing work must give way to specific products; and a "batch and queue" production mentality must get used to small lots produced in continuous flow.
•“Flow" production was an even more valuable innovation of Henry Ford¹s than his better-known "mass" production model.
Item
No. Problem/Opportunity Benefit
Person(s)
Responsible
Due
Date
%
Complete Comments
1
2
3
4
5
6
7
8
Kaizen Event Newspaper
Team: Kaizen Event:
Kaizen Newspaper
“It isn’t the changes that do you in, it’s the transitions.”
(From: “Managing Transitions: Making the Most of Change” by William Bridges) Time
What is your path? Who is with you? How many are with you?
Ending, Losing, Letting Go
The Neutral Zone
The New Beginning
• “Before you can begin something new, you have to end what used to be”
• “Before you can learn a new way of doing things, you have to unlearn the old way isn’t the changes that do you in, it’s the transitions.”
• “Change causes transition, and transition starts with an ending”