Demystifying Lean Six Sigma: Why the emphasis on Continuous Process Improvement? Vance A. Kinsey,...

Demystifying Lean Six Sigma:Why the emphasis onContinuous Process

Improvement?

Vance A. Kinsey, CPTLSS Master Black Belt

Presentation to

ASQ Chapter Meeting

15 April 2009

2Demystifying Lean Six Sigma—Continuous Process Improvement

Overview

My Journey

Scientific & Engineering Interest/Aptitude Trainer….but training was not the answer Supervisor/Manager….discovered the “system”

(Good people, bad system—who wins?) Education….Adult Learning

….but education was not the answer Consulting….helping others achieve their goals Human Performance Technology….CPT (people) Lean Six Sigma….MBB (process) Leadership….Strategic Transformation; helping

organizations discover/achieve their goals


Overview

Agenda

Why address process improvement

History of Process Improvement--beginnings of the three basic principles

Underlying principles of Lean, Six Sigma and Theory of Constraints including tools and techniques

Roles and Responsibilities/Certifications and Standards of LSS/CPI practitioners

Deployment Strategies to integrate the practices successfully into an organization


Overview

WIIFM?

As a Quality Professional, why am I concerned about Lean Six Sigma and/or Continuous Process Improvement?

Is it a threat or an opportunity?

And what is it anyway?


Overview

Managing Expectations—Project Nightmare

How the customer explained it

How the project leader understood it

How the analyst designed it

How the programmer wrote it

How the consultant described it

How the project was documented

What was installed by operations

How the customer was billed

How the project was supported

What the customer really needed


Overview

The First Step is the Hardest


Overview

How many of you have heard…?

I don’t like it!

I don’t want it!I don’t want it here!

We’ve already done this!

Isn’t this another “flavor of the month”?

It’ll never work here!

We’re different!

We don’t haveprocesses!

We don’tmanufacture

anything!

Our processes onlyhappen “on demand”

Our leaders won’tsupport it!How can I impact

a command-levelprocess?

We’re too busy!!!

We’re not broke; wedon’t need fixing!!!!

We don’t havethe money!!!!!

NEWS FLASH:

NEWS FLASH:

ALL OF THESE THOUGHTS

ALL OF THESE THOUGHTS

ARE NORMAL!

ARE NORMAL!


Overview

CPI/LSS has “borrowed” best practices

from all of these initiatives

PERFORMANCE IMPROVEMENT REFERENCE LIBRARY


Overview

CPI/LSS is…

Rigorous adherence to proven methodologies, tools and

techniques that will enable a leader to confidently solve process problems using data-driven

approaches so that the problems stay solved.


Overview

CPI/LSS is NOT…

Another management program.

A justification for buying new equipment, spending more money, or hiring/firing people.

A substitute for good leadership.

A “one-size fits all” solution.

It IS a philosophy to address and

correct problems.

It IS a low-cost approach to

identify and implement

appropriate changes to meet

specific goals.It D

OES require supervisors,

managers and leaders to make

good decisions.It IS

a scalable collaborative

process to capture, prioritize and

address all concerns of

customers, suppliers and

stakeholders.


Overview

Why now?

We’re still the best, most advanced and most productive economy in the world, so…

Why is process change important now?

What is the “burning platform”?

Who is championing the need for change and why?


Overview

Why Lean Six Sigma as our CPI model?

Common language Common practice Shareable resources, personnel Used by business & industry, government &

military, and academia (including their consultants)

Benefits can be compared and collected Rigorous, standardized training and

certification process


Overview

Appropriate methodology for all types of processesExamples of areas that can be significantly

improved:1. Transactional/administrative process (takes too long)2. Personnel overworked; multiple unnecessary steps (wasteful)3. Document review process (inconsistent)4. Unhappy customers & workers5. Cuts, shortfalls, and downsizing6. Ineffective management controls; inspections, oversight, surveillances, audits, reviews7. Changing customer demand


Overview

There may still be pockets of resistance or suspicion


Overview

Value StreamSpeed of Lean Customer Value

Accuracy of Six Sigma

-6 -3 0 +3 +6

Focus of TOC

Integration of three disciplines


Overview

History of Lean, Six Sigma, & TOC Roots of Lean: back to early 1900’s Henry Ford: continuous flow production,

waste elimination TWI: (Training Within Industry), 1940-1945 Kiichiro Toyoda and Taiichi Ohno: low

inventories, flexibility & responsiveness U.S. supermarkets: pull systems Shigeo Shingo: mistake proofing, reduced

set up times (SMED) Toyota Production System MIT and James Womack: brought Lean back

to U.S. Eli Goldratt: published book “The Goal”, early

1980’s (TOC) Motorola & others: developed Six Sigma

early 1990’s

NIKENIKE


Overview

DMAIC - The Process for Process Improvement

CCONTROLONTROL

IIMPROVEMPROVE

DDEFINEEFINE

MMEASUREEASURE

Document, Communicate and Identify Replication Opportunities

VERIFY RESULTS

Long Term Implementation

AANALYZENALYZE

DESCRIBE CONDITION

IDENTIFY PROBLEMS

LIST POTENTIAL CAUSES

PROPOSE SOLUTIONS

PREPARE ACTION PLANS, IMPLEMENT IMPROVEMENTS

COMPARE/CONTRAST TO HPSM

P DSHEWHART

CYCLE

A C


Overview

Same Scope of Impact…Different Starting Point

???

???

???

???

???

Engineering

Solution

PsychometricsSolution

Manpower

Solution

• Quantity

• Ratings

• Seniority

• Personnel• Human Factors• Safety• Manpower• Training• Medical• Habitability• Survivability

Policy

SolutionProcessSolution

Knowledge ManagementSolutionReward & IncentiveSolution

Stand

ards

&

Expec

tatio

ns

Solut

ion

IT

Solution

ErgonomicsSolution

Work

Environment

Solution

Doctrine & Testing

MaterialSolution

• EPSS• PC Sim• Job Aide• eLearning

TrainingSolution


Overview

Where to use CPI/LSS for Problem Solving

LEADERSHIP&

ACCOUNTABILITY

PROCESS

PERSONNEL

PLANT

This is where CPI/LSSWorks best.


Overview

1. Specify “Value” from the Customer’s Perspective

2. Map & Analyze the “Value Streams”

3. Make the Value Streams “Flow”

4. Enable the Customer to “Pull” Value from the Value Streams

5. Seek “Perfection”

Lean Principles

Demystifying Lean Six Sigma—Continuous Process Improvement Overview

Eight Wastes

Overproduction

Waiting

Transportation

Over-processingInventory

MotionDefects

Lean is eliminating wasteT I M W O O D UT I M W O O D U

Under-utilizationOf Employees


Overview

The Value of Time

TIMEBrokenComponent

RepairedComponent

Wait

Transport

Transport

InspectSet-up

= Value-Added Time = Non-Value-Added Time (WASTE)

Machine Machine

Disassemble

Start Finish

Re-Install

Remove FromShip

Value-added time is only a very small % of the total time.

Within the 8 wastes, time is a significant factor.

BEFOREANALYSIS

AFTERIMPROVEMENTS


Overview

Time

The Value of Time

Lean Focus Make all of the Value

Stream visible Reduce or eliminate

Non-Value-Added portions of the process

Result: Large time savings

Traditional Focus Improve Value-Added

work steps Better tools, machines,

instructions Result: Small time

savings Amount ofTime Eliminated

amount oftime saved

Small

Note: The focus is not on the value-added steps or the people performing them. Instead, the focus is to remove barriers and better support the people doing the work!

LARGE


Overview

Shift Happens

Based on Statistical Thinking All work is a series of process All processes have variation Businesses improve when they reduce

or eliminate variation

“In God we trust, everyone else bring data.”

Process A

Process B

Six Sigma is eliminating variation


Overview

• 20,000 lost postal mail items per hour

• 15 minutes of unsafe drinking water per day

• 2 long/short landings per day at a major airport

• 5,000 incorrect surgical operations per week

• 7 hours of lost electricity per month

• 20,000 incorrect prescriptions per month

• 7 lost postal mail items per hour

• 1 unsafe minute every seven months

• 1 long/short landing every five years

• 1.7 incorrect operations per week

• 1 hour without electricity every 34 years

• 68 wrong prescriptions per year

Hey, 99% is good enough right?Hey, 99% is good enough right?

99% 99.99966% (6 Sigma)

What’s the big deal?


Overview

A constraint is anything in an organization that limits it from moving forward or

achieving its goal

“The slowest vehicle in a convoy sets the pace”

When the constraint (critical path) is not progressing, the process is not progressing!

If 100 people worked to improve 100 different processes, the 1 person working on the constraint process would save the

organization much more than all the other 99 people combined!

---RESOURCE THIS FIRST---

TOC is eliminating bottlenecks


Overview

One way to put it all together

12 Step Process Improvement Plan

1: SIPOC

2: BOUNDARIES

3: VOICE OF THE CUSTOMER

4: SET UP THE CURRENT STATE MAP

See the

Process …

See the

Process …

See the

Waste …

See the

Waste …

5: WASTE WALK

6: CREATE CURRENT STATE MAP

7: SPAGHETTI MAP / CIRCLE DIAGRAM

8: FLOW ANALYSIS

9: CREATE IDEAL STATE MAP

10: DEVELOP FUTURE STATE MAP

11: DEVELOP FLOW LAYOUT

12: RAPID IMPROVEMENT PLAN

Lead the Way

toward it …

Lead the Way

toward it …

12 Step

1: SIPOC

2: BOUNDARIES

3: VOICE OF THE CUSTOMER

4: SET UP THE CURRENT STATE MAP

See the

Process …

See the

Process …

See the

Waste …

See the

Waste …

5: WASTE WALK

6: CREATE CURRENT STATE MAP

7: SPAGHETTI MAP / CIRCLE DIAGRAM

8: FLOW ANALYSIS

9: CREATE IDEAL STATE MAP

10: DEVELOP FUTURE STATE MAP

11: DEVELOP FLOW LAYOUT

12: RAPID IMPROVEMENT PLAN

Break

thro

ugh!

!

Lead the Way

toward it …

Lead the Way

toward it …


Overview

Before/After Spaghetti Diagram

P.C.

STRIP NDITANK

OFFICE

PAINTBOOTH

W/C 51A/B MaterialTechnician

Strip Tank

Paint Booth

NDI

PC

Strip Tank

Paint Booth

Office

PC

NDI

51E

PAINTBOOTH

N OFFICE

D TOOLI ROOM

AWP/RMSSTRIPROOM

SAFETY

520

51D P.C.

W/C 51A/B

NDI

PC

MaterialTechnician

BEFORE

AFTER


Overview

SNAP

MainTech

DEPTHEAD

C.O.

SK

DAAS

BO1

ITEMMGR

ISEA

SUPV

CRANESUPPLY

PEOIWS2

CRANEDEPOT

STOCKPOINT

Current State

Handoffs … 47Flow Clock Time … 486 hrsManual Touch Time … 108 hrs

Circle Diagram

MainTech

C.O.

ISEA

SUPVPEOIWS2

STOCKPOINT

SNAPDEPTHEAD

SK

DAAS

BO1

CRANESUPPLY

DOCKSIDE

Future Future State

Handoffs … 10Flow Clock Time … 90 hrsManual Touch Time … 58 hrs


Overview

DMAIC Improvement Process Road Map

• Review Project Charter • Validate Problem Statement

and Goals• Validate Voice of the Customer

and Voice of the Business• Validate Financial Benefits• Validate High-Level Value

Stream Map and Scope• Create Communication Plan• Select and Launch Team• Develop Project Schedule• Complete Define Gate

• Identify Potential Root Causes

• Reduce List of Potential Root Causes

• Confirm Root Cause to Output Relationship

• Estimate Impact of Root Causes on Key Outputs

• Prioritize Root Causes• Complete Analyze Gate

• Develop Potential Solutions• Evaluate, Select, and Optimize

Best Solutions• Develop ‘To-Be’ Value Stream

Map(s) • Develop and Implement Pilot

Solution• Confirm Attainment of Project

Goals• Develop Full Scale

Implementation Plan• Complete Improve Gate

• Implement Mistake Proofing• Develop SOP’s, Training Plan

and Process Controls• Implement Solution and

Ongoing Process Measurements

• Identify Project Replication Opportunities

• Complete Control Gate• Transition Project to Process

Owner

• Project Charter• Voice of the Customer and

Kano Analysis• SIPOC Map• Project Valuation / ROIC

Analysis Tools• RACI and Quad Charts• Stakeholder Analysis• Communication Plan• Effective Meeting Tools• Inquiry and Advocacy Skills• Time Lines, Milestones,

and Gantt Charting• Pareto Analysis• Belbin Analysis

• Value Stream Mapping• Value of Speed (Process Cycle

Efficiency / Little’s Law)• Operational Definitions• Data Collection Plan• Statistical Sampling• Measurement System Analysis

(MSA) • Gage R&R• Kappa Studies• Control Charts• Histograms• Normality Test• Process Capability Analysis

• Process Constraint ID and Takt Time Analysis

• Cause and Effect Analysis• FMEA• Hypothesis Tests/Conf.

Intervals• Simple and Multiple Regression• ANOVA• Components of Variation• Conquering Product and

Process Complexity• Queuing Theory

• Replenishment Pull/Kanban• Stocking Strategy• Process Flow Improvement • Process Balancing• Analytical Batch Sizing• Total Productive Maintenance• Design of Experiments (DOE)• Solution Selection Matrix• Piloting and Simulation

• Mistake-Proofing/Zero Defects

• Standard Operating Procedures (SOP’s)

• Process Control Plans• Visual Process Control Tools• Statistical Process Controls

(SPC)• Solution Replication• Project Transition Model• Team Feedback Session

• Value Stream Map for Deeper Understanding and Focus

• Identify Key Input, Process and Output Metrics

• Develop Operational Definitions• Develop Data Collection Plan• Validate Measurement System• Collect Baseline Data• Determine Process Capability• Complete Measure Gate

Tools

Activities

RIE/Kaizen, 5S, Value Analysis,Generic Pull Systems,

Four Step Rapid Setup Method

RIE/Kaizen, 5S, Value Analysis,Generic Pull Systems,

Four Step Rapid Setup Method

Identify and Implement Quick ImprovementsIdentify and Implement Quick Improvements

ImproveImproveAnalyzeAnalyze ControlControlMeasureMeasureDefineDefine


Overview

Integrating a Culture of CPI

1. Identify the Constraint2. Exploit the Constraint3. Subordinate to the Constraint4. Elevate the System’s Constraint5. Repeat Step 1, the Constraint

has probably moved

Theory of Constraints

Constraint Mitigation

Consistent Repeatable Processes Process Design / Redesign Defect Prevention Statistical Analysis Voice of the Customer

Six SigmaReducing Process

Variation

LEANEliminating Non-Value

Added Activities

Identify the Value Stream Eliminate Over-Production Eliminate Over-Processing Create Process Flow Create Pull System

CPI


Overview

All Employees• Provide data and voice of

customer inputs to VSA, RIE, and Projects

• Apply concepts to their own jobs and work areas

• Owns vision, direction, business results• Leads change• Allocates Resources• Owns Value Streams

• Owns Rapid Improvement Plan

• Owns Redeployment Plan

• Owns financial results• Removes Barriers

• Expert on principles and tools• Leads larger projects • Trains & Coaches Green Belts• Full-time position

• Lead and/or support CPI Events & Projects

• Full time or part time role

• Participate in CPI Events and Projects

• Part time

• Owns Deployment Plan• Owns Communication

Plan• Captures Metrics

DeploymentDeploymentChampionChampion

Value Stream Value Stream ChampionChampion

TeamTeamMembersMembers

ExecutiveExecutive LeadershipLeadership

Green BeltsGreen BeltsBlack BeltsBlack Belts

• Trains Black Belts• Leads Complex Projects • Full-time position

MasterMasterBlack BeltsBlack Belts

CPI Office Line Departments

Roles & Responsibilities


Overview

Certification Requirements

Green Belt– Pass course, exam, certificate– 4 RIEs or 1 Project and 2 RIEs

Black Belt– Pass course, exam, certificate– 2 Projects

ASQ Examination & CertificationASQ Examination & CertificationMaster Black Belt

– Teaching– 2-5 years minimum experience


Overview

Which processes should be targeted?

5S Standard Work Flow Pull

Team Leaders (Line)Team Members (Line)Green Belts (GB) Facilitate

Rapid Improvement Event (RIE)(7 week cycle)

Rapid Improvement Plan (RIP)Value Stream Champion/BBs&GBs, Execute RIP

Value Stream Analysis (VSA)Value Stream Champion/BB, 2-3 days, Develop RIP

Executive Planning Session (EPS)Executive Leadership, 2-3 days, Target HICVS

Projects(notional 3-6

months)

Team Leader (Line)Cross-Functional TeamBlack BeltGB (assist as needed)

Just Do Its

Value Stream Champion Execute


Overview

WIIFM

I am learning fast and vicariously I am a much happier consultant (Win-Win) I know my role and the role of every person on

my team Decision-making is collective yet accountability

is defined; objective vice subjective Strategic vision is transparent Success is immediate & measurable The Value Stream Champion is integral Transformational change is happening


Overview

Questions & Comments

Contact Information

Vance A. Kinsey, MEd, CPT

DoN LSS Master Black Belt

Instructor, NAVSEA LSS College

[email protected]

[email protected]

(757) 642-2074

Demystifying Lean Six Sigma: Why the emphasis on Continuous Process Improvement? Vance A. Kinsey,...

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