6s SIX SIGMA

Continuous improvement Lean

Importance of CI & Lean methodologies in Logistics

Kesavakrishnan (Kesava) Keysight Technologies (formerly known as Agilent Electronic

Measurement Group)

6s SIX SIGMA

Continuous improvement Lean

Agenda

• Quick glance of various Quality methodologies (CI, Lean, 6sigma)

• Why its important?• Difference between Lean and CI• Useful quality tools (5S & VSM)• Real examples• Q & A

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Continuous improvement Lean

Difficulty/Complexity

Impa

ct

BreakthroughWorkoutTeams

Lean (“Kaizen”)Events

Enabling ProjectsProceed with caution (AVOID)

Empowered Problem Solving

Teams(Just Do It, Work-

Out)

Six Sigma®

ImprovementTeams

(DMAIC)

Design forSix Sigma

(DFSS)Projects

Quick glance of various Quality methodologies

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Continuous improvement Lean

Why it is important?

• Increase the efficiency level• Productivity improvement• Reduce the manpower cost• Improves the customer

satisfaction level• Increase the competitiveness

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Continuous improvement Lean

Difference between Lean and CI

Lean CI

• A quality-oriented thought process used to identify and remove waste (“Muda”) as defined by customer

• Create flow, eliminate waste through VSM and 5S tools

• Eliminate foreseeable defects (“mistake proofing”)

• Short-term projects (1-8 weeks)

• Lean tools, with spontaneous projects and basic measurement system

• Plan, Do, Check and Action (PDCA) simple methodology

• Identify the improvement and just do it (quick wins)

• No quality tools required

• Easy to identify & implement (just in a day or two)

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Continuous improvement Lean

Continuous Improvement - PDCA Cycle

– Plan: Plan for change. Define steps and predict results.

– Do: Execute plan. Take small steps in controlled environment.

– Check: Study the results.– Act: Take action to standardize

and improve process on broader scale.

The Plan-Do-Check-Act Cycle was made popular by W. Edward Deming

It helps to promote and drive Continuous Improvement

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Continuous improvement Lean

Lean Objectives

Eliminate MUDA (waste)

Enhance value delivered to customer

Unleash Innovation using Employee Engagement

CostDefectsLead timeWaste!

Productivity Customer satisfaction

Profit Quality

Cash flow

Cycle Time

Value add

Before

After

Non value add

Same work completed in less time and effort

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Continuous improvement Lean

Value & Waste

Value: Value is defined from the standpoint of the End/Ultimate customer. It can be expressed in the form of:

• a specific product and/or Service, which meets customer’s needs

• at a specific price• at a specific time

WasteAll other actions and unwanted features are by definition — WASTE. These add no value for the customer — simply raise costs of our business

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Continuous improvement Lean

Waste Categories

Extra Processing

Waiting

Motion

Inventory

Transportation

Overproduction

Defects/Inspection

Waiting Transportation

Overproduction

Inventory

People

Quantity

Quality

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Continuous improvement Lean

Waste Categories - Examples

Waste Category Office Examples

Overproduction Printing Paperwork out before it is really needed. Purchasing items before they are needed. Processing before the next person is ready for it.

Inventory Batch Processing Transactions or reports. Files waiting to be processed.

Waiting System Downtime, system response time, approval from others.

Extra Processing Extra Copies, unnecessary or excessive reports, transactions.

Defects Order entry errors, invoice error. Any error leading to re-work.

Excess Motion Walking to/from copier, fax machine other offices.

Transportation Excessive Email attachment, multiple hands-offs.

Underutilized People Limited employee authority and responsibility for basic task, management command and control, inadequate business tools available.

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Continuous improvement Lean

Lean Process Improvement Tool: “5S”

1. Sort (Seiri)Clearly distinguish necessary items and unnecessary items; eliminateunnecessary items.

2. Simplify or Straighten or Systematize (Seiton)Put the necessary items in their place and provide easy access.

3. Sweep or Shine (Seiso)Clean everything, keep it clean daily, and use this process to inspect for defects.

4. Standardize (Seiketsu)Create visual controls and guidelines for keeping the workspace organized and clean. This is to ensure we do the right thing, the right way, every time.

5. Sustain or Self-discipline (Shitsuke)Implement disciplines and training to ensure the 5S standards are followed by everyone.

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Continuous improvement Lean

Making 5S Work

5S is an organizational and cultural change, not a one-time action

• Involves everyone in the organization, top to bottom

• Practiced daily and with intention

• Must involve suppliers & customers where appropriate

• Integrates nicely with the “Plan-Do-Check-Act” cycle

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Continuous improvement Lean

Value Stream Mapping

1. Provide a high level, “block” overview

2. Depict primary flows: info, material, $

3. Emphasize TIME

4. Goal: to highlight waste opportunities (not hide them)

Value Stream Mapping is an important lean exercise

designed to…

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Continuous improvement Lean

Value Stream Map: getting to a Future State

The Value Stream Map becomes an important tool

to project future improvement projects and

detail their impact.

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Continuous improvement Lean

Real life examples - Admin Filling RestructuringBefore After

Disorganized and unstructured

Filling as per Sales Order Serial Number

• No defined process• No defined frequency• High retrieval time (~4 hours)• Low retrieval % (<70%)• Audit non-compliance

Labeled Cabinets

Five “S” implemented Date wise archiving

•Standard Process defined• Frequency and ownership defined • Low retrieval time (~3 min)• High retrieval % (~100%)• Audit Compliance

5S

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Continuous improvement Lean

Sales Admin Printer movement

Before

After

To here (Printer)

Motion Waste

From here(Workstation

)

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Continuous improvement Lean

Sales Admin EbizCommon Sales, Support and SOM web invoices in-house printerBefore After

Extra Process

ing steps

Sales CSR SOM CSR Support CSR

Ebiz Invoicing CSR does invoicing in customers portal

Multiple printersCommon printer at ATI

Sales CSR SOM CSR Support CSR

• Non standard process• Delayed invoicing• Missing invoices• Collections follow-ups

• Standard and Simplified process• Timely invoicing• Rare Missing invoices• Limited Collections follow-ups

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Continuous improvement Lean

Kaizen Action 1------ motion, Poka-Yoke

Before AfterI need to find the 15 bl-in screw driver, let me look

for…

With the green label, now I can quickly find the right

screw driver.

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Continuous improvement Lean

Kaizen Action 2------ motion, reduce 1 work bench

Before After

Empty

1 operator has to transmit between two work benches for her assembling process

Reduce motion and Saved 10m2 space by optimizing process flow with 1 work bench reduction.

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Continuous improvement Lean

Kaizen Action 3------material movement, reduce 4 work benches to 2 benches

Before After

3 testers and 4 work benches 2 testers & 2 work benches after combining testers, saved 8M2 space

Empty

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Continuous improvement LeanGroup/Presentation TitleAgilent Restricted

Month ##, 200X

Kaizen Action 4------WIP reduction

Before After

40 units

20 units

15 units

5 units

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Continuous improvement Lean

The authors of Lean Thinking point to these types of benefits…

1. Double productivity

2. Cutting throughput times by 90%

3. Reducing inventory by 90%

4. Errors/Defects reduced by 50%

5. Work-related injuries reduced by 50%

6. Time to market for new products cut in half (50%)

7. Capital investment modest to neutral

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Continuous improvement Lean

Q & A