Introduction to CI LP - Intro to CI - Rev 1.ppt1 Goodrich Continuous Improvement This presentation...

Introduction to CI

LP - Intro to CI - Rev 1.ppt 1

GoodrichContinuous Improvement

This presentation is one of a standard training series produced by the Goodrich Continuous Improvement organization. The series has been prepared for use by Goodrich organizations in the training and continuing education of their personnel. Any use outside of the Goodrich Corporation is expressly prohibited without the permission of the Goodrich Continuous Improvement organization.


Introduction to CI - Agenda

History of Continuous Improvement

What is Lean?

What is Six Sigma?

Combining Lean and Six Sigma

Goodrich Approach to Continuous Improvement


“Craft” production prevails until the late 1700’s Skilled Worker – Starts and finishes order Dedicated special tools/All manual operations Parts custom fit High Cost – High Variety


Late 1800’s/Early 1900’s – “Scientific Approach” Time Study Standard Work

Late 1700’s – Interchangeability emerges Standard gauging Division of labor

1800’s – Technology Driven Improvement Engineering drawings Modern machine tools



1900 A.D. 2000 A.D.

Walter A. Shewhart, an engineer at Bell Telephone Laboratories, developed statistical tools to determine when corrective actions should be applied to processes, including the SPC control chart in 1924

W. Edwards Deming, a student of Shewhart’s, lectured Japanese industrial companies on statistical management methods in 1950, after being frustrated in similar attempts in the U.S.

After World War II and through the 1970’s, Taiichi Ohno developed and refined the Toyota Production System, the foundation for Lean manufacturing

Mikel Harry – Based on his experience at GM and Motorola, he along with others, developed the Six Sigma concepts, which have been developed and expanded by companies such as GE, Allied Signal, Lockheed Martin, and Boeing.

Jim Womack and his colleagues at MIT bring attention to the Toyota Production System through their books, The Machine that Changed the World and Lean Thinking

Henry Ford in 1915 introduces mass production in its purest form with a moving assembly line producing Model T’s.

W. Edwards Deming, a student ofShewhart’s, lectured Japanese industrial companies on statistical management methodsin 1950, after being frustrated in similar attempts in the U.S.

W. Edwards Deming, a student ofShewhart’s, lectured Japanese industrial companies on statistical management methodsin 1950, after being frustrated in similar attempts in the U.S.





After World War II and through the 1970’s, Taiichi Ohno developed and refined the Toyota Production System, the foundation for Lean manufacturing

Mikel Harry – Based on his experience at GM and Motorola, he along with others, developed the Six Sigma concepts, which have been developed and expanded by companies such as GE, Allied Signal, Lockheed Martin, and Boeing.

Jim Womack and his colleagues at MIT bring attention to the Toyota Production System through their books, The Machine that Changed the Worldand Lean Thinking


Class Discussion – Lean/Six Sigma

Numerous companies today are applying Lean and/or Six Sigma. You may have had some exposure to these concepts. Let’s list any words/ideas you associate with Lean and Six Sigma …

Lean Six Sigma


What is Lean?

Based on the principles of the Toyota Production System, Lean, at its core, is about the systematic and continuous identification and elimination of waste

Key Principles of Lean …

• Define Value and Identify the Value Stream

Reference: Executive Summary of Lean Thinking by James P. Womack and Daniel T. Jones

• Make Value Flow

Don’t Automate WasteDon’t Automate Waste

• As Pulled by the Customer

You can’t see all the waste until you strip away waste

• In Pursuit of Perfection

Normal vs Abnormal

VA NVA

Kaizen

Normal vs Abnormal

VA NVA

Kaizen

• Eliminate Unnecessary Steps in the Value Stream


What is Lean?

Lean involves multiple systems and methods:

Effective workplace organization and visual controls

Improved machine layouts and multi-skilled workers

Setup reduction

One piece (or small lot) production

Standard work to enable line balancing

Kanban systems for Just-In-Time production

Small group improvement activities (Lean Events)


Order Cash

What is Lean?

“All we are doing is looking at the time line from the moment the customer gives us an order to the point when we collect the cash. And we are reducing that time line by removing the non-value-added wastes.”

- Taiichi Ohno

Order Cash

Speed is a focus of Lean …


After - Lean

One Piece Flow Reduced Leadtime Cell Team Working

Lean Example in the Factory

Before - Traditional BatchMachines Grouped

By Function

Cluttered, Unsuitable Work Area

Isolated Workers –

Poor Teamwork

Large Batches


Lean Example in the Office

Lean Event – Payment Request Process (Accounts Payable)

Reduced process steps by 30% Implemented 10+ mistake-proofing ideas Applied visual controls

To work area To user instructions for invoice submittals

Improved productivity by 19% Drove quality at the source


What is Six Sigma (6σ)?

A structured approach for improving performance Emphasizes importance of customer critical

processes Drives for perfection in those processes by

reducing variation and eliminating defects Uses objective, fact-based analysis techniques

...to center the process and ...

USLLSL

Tolerance

... reduce variation!

USLLSL

Tolerance

A systematic approach ...

USLLSL

Tolerance

failure!


What is Six Sigma (6σ)?

Sigma (σ) is a statistical term that measures the variation in a given process and corresponds to parts per million defective (ppm)

2σ308,537

ppm

4σ6,210 ppm

5σ233 ppm

3σ66,807 ppm

6σ3.4 ppm


99% just won’t cut it in today’s world! Our customers demand better!99% just won’t cut it in today’s world! Our customers demand better!

Why Six Sigma?

Why 99% is not good enough …

3.8 Sigma (99% Good) 6 Sigma (99.99966% Good)

Toxic drinking water for 15 minutes each day

Unsafe water for one minute every seven months

5,000 incorrect surgical operations per week

1.7 incorrect surgical operations per week

204,000 wrong drug prescriptions each year

68 wrong prescriptions each year

Two short or long landings at major U.S. airports in 10 years

Two short or long landings at major U.S. airports each day

50 newborn babies dropped at birth by doctors each day

6 newborn babies dropped in a year


Proven problem solving/project management methodology Mathematical tools for problem solving Advanced statistical techniques

Charter Team, Map Process & Specify CTQ’s

DEFINE

• Customer Critical To Quality (CTQ) Factors Derived and Documented

Measure Process Performance

MEASURE

• CTQs Measured

• Process Capability

• Process Stability

• Baseline Performance Calculated

Identify & Quantify Root Causes

ANALYZE

• Identify, Quantify and Verify Root Causes

• Benefits Estimated

Institutionalize Improvement, Ongoing Control

CONTROL

• Ongoing Measurement & Monitoring Plan Implemented

• Process Standardized

• Benefits Validated

Select, Design & Implement Solution

• Identify and Optimize Solution(s)

• Cost/Benefit Analysis

IMPROVE

Six Sigma – DMAIC


• Problem Definition: Vsat production acceptance test failures threatening customer deliveries and production schedules at customer site.

8200 8250 8300 8350

143

144

145

146

147

Total Weight MS & MR

Vsa

t (V

)

Y = -5.25290 + 1.82E-02X

R-Sq = 88.0 %

Regression

95% CI

95% PI

Regression Plot

• Process Capability Analysis indicated a process that could become more capable.

• Fishbone diagram and other analysis tools identified poor control of glue viscosity used to assemble stator and rotor core packs as a key root cause.

• More glue in a core pack means less iron which means less volts.

• Regression Analysis revealed the exact relationship between stator & rotor weight and Vsat.

Six Sigma – Example

Global Express Variable Frequency Generator – Low Saturation Volts (Vsat)

Define

Measure

Analyze

Improve

Control

149148147146145144143

USLLSL

account expected process shifts w ith LCL=144.14Process Capability Analysis for Vsat taking into

PPM Total

PPM > USL

PPM < LSL

PPM Total

PPM > USL

PPM < LSL

PPM Total

PPM > USL

PPM < LSL

Ppk

PPL

PPU

Pp

Cpm

Cpk

CPL

CPU

Cp

StDev (Overall)

StDev (Within)

Sample N

Mean

LSL

Target

USL

43157.25

0.03

43157.22

11820.53

0.00

11820.53

20304.57

0.00

20304.57

0.57

0.57

1.81

1.19

*

0.75

0.75

2.38

1.57

0.660071

0.500299

197

145.272

144.140

*

148.850

Exp. "Overall" PerformanceExp. "Within" PerformanceObserved PerformanceOverall Capability

Potential (Within) Capability

Process Data

Within

Overall

Process Capability Analysis for Vsat, taking intoaccount expected process variation, with LSL = 144.14

149148147146145144143

USLLSL

account expected process shifts w ith LCL=144.14Process Capability Analysis for Vsat taking into

PPM Total

PPM > USL

PPM < LSL

PPM Total

PPM > USL

PPM < LSL

PPM Total

PPM > USL

PPM < LSL

Ppk

PPL

PPU

Pp

Cpm

Cpk

CPL

CPU

Cp

StDev (Overall)

StDev (Within)

Sample N

Mean

LSL

Target

USL

43157.25

0.03

43157.22

11820.53

0.00

11820.53

20304.57

0.00

20304.57

0.57

0.57

1.81

1.19

*

0.75

0.75

2.38

1.57

0.660071

0.500299

197

145.272

144.140

*

148.850

Exp. "Overall" PerformanceExp. "Within" PerformanceObserved PerformanceOverall Capability

Potential (Within) Capability

Process Data

Within

Overall

Process Capability Analysis for Vsat, taking intoaccount expected process variation, with LSL = 144.14

• Understanding gained from Regression Analysis allowed controls to be imposed.• As a result there have been no failures for Vsat.


Lead Time

Value Added Activity

Non Value Added Activity


Lean predominant impact is on Process Speed

Six Sigma focuses primarily here

Think about any typical process …

Lean focuses primarily here

Lean and Six Sigma are complementary tools for reducing cost and improving customer service

Six Sigma predominant impact is on Process Quality



eliminate waste!

minimize leadtime!

Make value flow

Define value

Pull by the customer

LeanLean

USLLSL

USLLSL

USLLSL

failure!

eliminate defects!

minimize variation!

target

xbar ()

LSL

USL

σσσσ

Six SigmaSix Sigma

A powerful combination ...A powerful combination ...A powerful combination ...A powerful combination ...

LeanLeanSix SigmaSix Sigma &&

... that drives impressive improvements... that drives impressive improvements... that drives impressive improvements... that drives impressive improvements

SpeedSpeedQualityQuality

Normal vs Abnormal

VA NVA

Kaizen

Normal vs Abnormal

VA NVA

Kaizen

Normal vs Abnormal

VA NVA

Kaizen

Normal vs Abnormal

VA NVA

Kaizen

Create value streamscustomer


Toolbox Approach to CI

Business problem defines mix of tools required

Use whatever tool and improvement activity (Lean event or Six Sigma project) best suits the problem!

When uncertain which to use, let common sense prevail – select the approach that will work best in the local environment … and stick to the fundamentals.


CI History at Goodrich

Legacy Goodrich Aerostructures adopted Lean in mid-1990’s in

response to business crisis Several other divisions followed – independently

or with assistance from Aerostructures All divisions have at least some exposure and

experience with Lean … some isolated use of Six Sigma

Decentralized approach

… higher customer expectations and tougher market conditions require that we take best practices and lessons learned and apply

them consistently across the Enterprise

Overall, some pockets of significant success, but …

Former TRW Aeronautical Systems Evolution to Six Sigma in late 1990’s Solid foundation of training across AS Centralized approach


Beginners

Practitioners

Leaders

Awakening Learning Executing/Expanding

Learning Curve

Strat Sourcing

Lean

Six Sigma

Innovation

Etc.

Leverage Value of Enterprise-Wide Processes

Value-Added Transfer from Leaders to

Others• Lessons Learned

• Best Practices

• Training Material

• Trained Resources

Accelerate

Rate of Learning for All

SBU Perception

Want a Jumpstart … Looking for Best Practices

Want to Accelerate Learning

Willing to Help Others but Fear

Interference


Implement a single Goodrich-wide CI program that encompasses traditional Lean and Six Sigma tools

Drawing on best practices from across Goodrich, this program will include:

Comprehensive CI Training

Standard Materials

Certification Process

Management Review Process in SBU’s

Performance Measurement & Reporting

Common Assessment Tool For Measuring CI Progress

GR Continuous Improvement Program


Design Engineering PathSix Sigma PathLean Path

Leadership Overview

16 Hrs

CI Overview8 Hrs

SS Green Belt

~80 Hrs

SS Black Belt

~80 Hrs

Lean Practitioner

~80 Hrs

Lean Expert~80 Hrs

SS Green Belt

~80 Hrs

Design CI Expert~80 Hrs

Leadership Overview

16 Hrs

Dep

th o

f L

earn

ing

EXPERT

INTRODUCTORY CI Overview8 Hrs

CI Overview All Employees

Leadership Overview Key Leaders

SS Green Belt

~80 Hrs

Lean Practitioner

~80 Hrs

Level I (Lean Practitioner & Green Belt) CI Users and Leaders

SS Black Belt

~80 Hrs

Lean Expert~80 Hrs

Level II (Lean Expert & Black Belt) CI Subject Matter Experts

SS Green Belt

~80 Hrs

Design CI Expert~80 Hrs

Design CI Expert (LPD & DFSS) Design/R&D Engineers

Curriculum Element Target Audience

CI Training Curriculum

Goodrich CI Program Elements



Certification

Criteria established for standard training certifications

Lean Practitioner, Lean Expert

Six Sigma Green Belt, Black Belt

Design Green Belt, Black Belt

Management Review Process

Each division/site to have a process and structure to oversee the execution of the local CI effort

Local process and structure should encompass both Lean and Six Sigma



Performance Measurement

Key operational metrics to be implemented

Probable selections …

Inventory Turns

On-Time Delivery

Cost of Quality

Value Added Per Employee

OSHA Safety Statistics

Common Assessment Tool

Provides Roadmap for improvement

Measures progress along five stages of maturity …


Stage I - Foundations for Change

Leadership

Descriptive/Desired State:

Current Level Level Definitions:0 - No evidence1 - Awareness - Aware Inadequacy Exists, Just Getting Started2 - Planning - Basic Scope Defined, First Steps Taken, Isolated Implementation3 - Understanding - Basic Plans/Systems in Place, Exhibits Some of the Time, Glitches Still Happen4 - Commitment - Exhibits Characteristics Most of the Time, Capable/Focused Implementation in Place5 - Habit - Exhibits All of the Time for All Cases

Expected Characteristics Objective Evidence/Comments (Provide attachments as needed)

Leaders recognize need for change, have made initial commitment to the change process, and have communicated a case for change to the organization.

1

Initial case for change has been made to organization. Initial vision for improvement communicated.

Sr. business leader has made firm commitment to change. Senior leadership team is made accountable for driving change.

Sr. leaders understand need for change and gain basic knowledge of CI approaches. Also have understanding of existing culture(s) within the business and potential roadblocks that may be encountered in a change effort.

Initial vision for future state of the business formulated.

Understanding of need for committed resources to promote change. Initial provisioning of resources.

Entire senior management team participates in defining vision for improvement. This would include training, benchmarking, current state assessments.

Assessment Scorecard

Division: Sample DivisionSite: Sample Site

Date: Jul-03

I II III IV V Totals

Leadership 3 2 1 0 0 6

Strategy 5 4 3 2 1 15

Metrics 4 1 1 0 0 6

Customer Focus 5 3 2 1 0 11

Process Management

4 3 1 1 0 9

Organizational Development

5 4 1 1 0 11

Application of CI Tools

5 2 1 1 1 10

Totals 31 19 10 6 2 68

CI Growth

0

5

10

15

20

25

30

35

Foundations Local Impr Ent Impr Bus Re-Eng Perfection

Stage

Sc

ore Jun-02

Jul-03

Key Enablers

0

2

4

6

8

10

12

14

16

Lead Strat Metrics CustFocus

Proc Mgt Org Dev CI Tools

Sc

ore Jun-02

Jul-03

Total Score

0

10

20

30

40

50

60

70

80

Jun-99 Jun-00 Jun-01 Jun-02 Jul-03

Date

Sc

ore

NOTES:

Stage III - Enterprise Improvement

Strategy




There is clear accountability and consequences for not achieving PDM target improvements.

All employees trained on Policy Deployment and it is a part of new hire orientation.

PDPR activity is linked to all Performance Planning and Assessment objectives for all employees.

All employees can outline what Policy Deployment is and describe their ability to impact the target improvements.

All C/I (kaizen) activity is clearly linked to a target improvement.

Tier II PDPRs have been established for all SBU senior leadership direct reports.

All team leaders can explain Key Results/metrics and which PDM target improvement they impact.

Business has fully implemented strategy/policy deployment and results can be associated with improvement targets. PDM/PDPRs have been established at the Tier II level (and below).

3

Improvement targets set with customer (internal & external) expectations in mind.

Stage V - Pursuit of Perfection

Application of CI Tools




Majority of suppliers are also using CI tools. SBU drives expectations that supplier's suppliers too are implementing the tools. Suppliers unwilling to implement are typically replaced.

Self-directed work teams determine which tools to implement. CI facilitators play mentoring/coaching roles.

Documented, year over year financial benefits are recorded in all departments and value streams as a direct result of applying CI tools.

All employees use the tools and understand their benefits. Majority of training is in advanced tools.

CI goals, based on objective financial results, are included in each employee's performance expectations.

Effective application of CI tools enables year-over-year price reductions to the customer if needed.

Documented success for SBU are known and acclaimed industry-wide.

Use of CI tools happens naturally and effectively in all departments and Value Streams and throughout the organization's supplier base. All employees understand what tools are available, how to use them, and their respective benefits.

1

CI tools usage consistently exceeds level and depth of the customer base.

Qualitative assessment of CI progress

Five “Stages” of CI Maturity

Seven “Enablers”

Roadmap for Improvement

“Enterprise Excellence Assessment”



Path to Enterprise Excellence

Foundations for Change

Foundations for Change

Localized Improvement

Localized Improvement

Enterprise Improvement

Enterprise Improvement

Value Chain Optimization

Value Chain Optimization

Pursuit of Perfection

Pursuit of Perfection

Stages of Maturity

Introduction to CI LP - Intro to CI - Rev 1.ppt1 Goodrich Continuous Improvement This presentation...

Documents

Transcript of Introduction to CI LP - Intro to CI - Rev 1.ppt1 Goodrich Continuous Improvement This presentation...