Lean Six Sigma Webinar - Six Sigma Software | QI Macros ...
Transcript of Lean Six Sigma Webinar - Six Sigma Software | QI Macros ...
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Lean Six Sigma SimplifiedLean Six Sigma Simplified
Recession ProofingRecession ProofingYour BusinessYour Business
Jay Arthur (888) 468Jay Arthur (888) 468--15371537
Webinar starts at 1pm MSTWebinar starts at 1pm MST
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Staircase to ProfitsStaircase to Profits
Parts Per Million100,000 10,000 1,000 100 10 1
World ClassSix Sigma
3 PPM
Two Sigma300,000 PPM
Four Sigma 6,200 PPM
Sigma
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Three Sigma66,800
Five Sigma300 PPM
1% 10,000 PPM
1
CommonSense
Ad HocStartup
CommonScience
ComplexScience
You Are Here
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Recession ProofingRecession ProofingYour Cash FlowYour Cash Flow
$$$
$Expenses
People
DelayDefects
Deviation
Sales
$
$ $25%
60%
33%
67%
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Lean Six Sigma SimplifiedLean Six Sigma Simplified
SimplifySimplifyStreamlineStreamline
OptimizeOptimize
LeanLean
Six SigmaSix Sigma
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Value Added Value Added vsvs NonNon--Value AddedValue Added
Defects & DeviationDelay
Six SigmaLean
WASTE
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Lean and Six Sigma Lean and Six Sigma Work TogetherWork Together
ValueAdded
Defects and DeviationTYPICAL
COMPANY
SIX SIGMA
LEAD TIME
LEAN andSIX SIGMA
NVA
TIME
Delay
Non-Value Added
ValueAdded
Defects and Deviation
DelayNon-Value Added
ValueAdded
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Lean Lean -- The Fast Eat the SlowThe Fast Eat the SlowThe Economies of Speed
Rule #1: To accelerate your speed, eliminate delay.
• The 3-57 Rule – Employees only work on the product for 3 minutes out of every hour. The other 57 minutes are delay.
• The 15-2-20 Rule – 15 minute/hr reduction in delay will double productivity and increase profits 20%
• The 3X2 Rule - grow three times faster than average and double your profit margins
Source: Competing Against Time
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Simplify Your BusinessSimplify Your Businesswith 5Swith 5S
SortSort Organizing, separating the needed Organizing, separating the needed from the unneededfrom the unneeded
Straighten Straighten A place for everything and A place for everything and everything in its place. everything in its place. Make it visual and selfMake it visual and self--explanatory.explanatory.
ShineShine Cleaning and looking for ways to Cleaning and looking for ways to keep it cleankeep it clean
StandardizeStandardize Maintain and monitor the first 3 S’sMaintain and monitor the first 3 S’sSustainSustain Discipline, stick to the rules / Discipline, stick to the rules /
continuous improvement of all continuous improvement of all principlesprinciples
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Lab Before Lab After
5S Team removed two dumpsters of clutter
Clutter
5S Team
Other items were red tagged and moved out of the lab.
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Streamline Your BusinessStreamline Your BusinessThe Speed Bumps of Lean
1. Overproduction (Inventory is EVIL!)
2. Waiting (Delay)
3. Unnecessary Movement
• People
• Inventory
4. Unnecessary or Incorrect Processing
5. Rework
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Redesigning the Work FlowRedesigning the Work Flow
What is the current flow?What is the current flow?Value Stream MappingValue Stream MappingSpaghetti DiagramsSpaghetti Diagrams
What flow would reduce the speed bumps?What flow would reduce the speed bumps?Tools for Lean:Tools for Lean:
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Define the Value StreamDefine the Value Stream
Hint: Most of the Delay is in the arrowsMost of the Defects and Deviation are in the boxes
Hint: Make Your Product Faster, Not Your People.
LogRequest
EvaluateRequest
GetBackup
Valid?
ScheduleDiagnoseTreat
Cancel
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Eliminate the DelaysEliminate the Delays
Hint: Most of the Delay is in the arrowsMost of the Defects and Deviation are in the boxes
Hint: Make Your Product Faster, Not Your People.
LogRequest
EvaluateRequest
GetBackup
Valid?
ScheduleDiagnoseTreat
25 days 120 days
1 day 7 days
Cancel
10 Min 45 Min
60 Min
10 Min
45 MinVaries
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Lean Kitchen DesignLean Kitchen Design
STOVE
REFRIGERATORSINK
Rule #2: Walking is Waste!
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Spaghetti DiagramSpaghetti Diagram
Purpose: To understand the current process.
1. Layout the existing processing stations
2. Become the product
3. Show the flow of the product through the process.
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Tras
h
Lab Redesign
Reagent Refrigerator was here.
Reagent Refrigerator
Lab Before Lab In Process
Spaghetti Diagram of too much travel
Walking
Is
Waste!
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Lean Lab ResultsLean Lab Results
Reduced
• Floor Space 17% (Goal 10%)
• Staff Movement 54% (Goal 30%)
• Phlebotomist Travel 55% (4 miles ~ 1.5 FTE)
• Tech Travel 40% (2,304 feet 0.15 FTE)
• Sample Travel 55% 23,400 feet
7 hours of delay per 24 hours
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Lean SimplifiedLean Simplified
Simplify with 5SSimplify with 5SSort, Straighten, Shine, Standardize, SustainSort, Straighten, Shine, Standardize, Sustain
Streamline with LeanStreamline with LeanValue Stream MappingValue Stream MappingSpaghetti DiagrammingSpaghetti DiagrammingInventory ReductionInventory Reduction
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What is Six Sigma?What is Six Sigma?
2 Sigma2 Sigma 30% defects30% defects 300,000PPM300,000PPM33--4 Sigma4 Sigma 3% defects3% defects 30,000 PPM30,000 PPM5 Sigma5 Sigma .03 defects.03 defects 300 PPM300 PPM6 Sigma6 Sigma .00003 defects.00003 defects 3 PPM3 PPM
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The FixThe Fix--It FactoryIt Factory
Your Factory Your Customers
Your Fix-It Factory
$ $ $ $ $ $ $ $ $ $
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Defects Defects -- The 4The 4--50 Rule50 RuleMyth: The wider you spread it, the greater the returnsMyth: The wider you spread it, the greater the returns
To increase returns, To increase returns, narrow your focusnarrow your focus44--50 rule 50 rule -- (20/80)(20/80)22
4% of business causes over 50% of waste and rework 4% of business causes over 50% of waste and rework
Power Distribution
Rule #3: To increase returns,narrow your focus.
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Focus (Define and Measure)Focus (Define and Measure)Focus your efforts in ways that achieve Focus your efforts in ways that achieve breakthrough improvements in speed, breakthrough improvements in speed, quality and cost.quality and cost.
Line Graph Pareto
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Improve (Analyze and Improve)Improve (Analyze and Improve)Use data to identify and eliminate root causes Use data to identify and eliminate root causes of problems involving time, defects and cost. of problems involving time, defects and cost. 4% of your business causes 50% of the waste, 4% of your business causes 50% of the waste, rework and lost profit.rework and lost profit.
Tools Tools –– Why? Why? Why? Why? Why?Why? Why? Why? Why? Why?
Fishbone
Action
CountermeasuresMatrix
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Focus on PerformanceFocus on Performance
Dec-Jan 2000 Service and Record Affecting Fallout (PPM)
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3 Sigma
2 Sigma
Start with a line graph or control chart of defects, time or cost:
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Narrow Your FocusNarrow Your FocusUse a series of Pareto charts to narrow your focus:
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90%80%70%60%50%40%47%
96%99%
89%Focus on theBig Bars!
Jan Service Affecting Fallout
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Initiate Root Cause TeamsInitiate Root Cause Teams
Identify subject experts to analyze the problemIdentify subject experts to analyze the problemSchedule half or one day root cause analysis Schedule half or one day root cause analysis sessions for each “big bar” of the pareto chart.sessions for each “big bar” of the pareto chart.Analyze the root causes, validate they really are Analyze the root causes, validate they really are the root causes, and identify solutions.the root causes, and identify solutions.Develop action plan to implement the solutionsDevelop action plan to implement the solutionsMeasure and validate the results as you Measure and validate the results as you implement solutionsimplement solutions
Rule #4: Use SWAT teams of experts.
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Identify Root CausesIdentify Root CausesUse the fishbone diagram to perform root cause analysis:
Out Orders
Non Integrated USOCS In Orders
T/F TN ChangeWireless works with Number
Pending Order Check Not Needed on Price
Plan Changes
Price Plan Changes
CSR entered OTNWireless LK# Final
New Orders in Error
Order already issued in another
system
Duplicate Orders
Wireline link #Match Not needed
on out orders
No WWWW Mismatch
Mismatch CustomerService
Affecting fallout = 60% of errors
ProblemStmt
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CountermeasuresCountermeasures(Mistake Proofing)(Mistake Proofing)
Root Cause Countermeasure Specific Actions
Telephone Number Mismatch
Customer CodeMismatch
Add Edit
Add Edit
Edit requirements written and scheduled for April release
Requirements written and scheduled for June release
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Verify ResultsVerify Results
CM1
CM2
Time
Service Order Errors
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Verify ResultsVerify Results
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EliminatedTop TwoService
Affecting Errors and
Saved $250,000per month
Service Affecting Errors After Changes
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Reduce DeviationReduce Deviation
BadBadGood
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Reduce DeviationReduce DeviationLSL USLOff Target
LSL USL
LSL USL
Too Much Variation
Centered on Target
Reduce Spread
Center Process
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Sustain (Control)Sustain (Control)Statistical Process Control (SPC)Statistical Process Control (SPC)
ToolsToolsControl ChartsControl Charts ––Analyze your data to determine process Analyze your data to determine process stability. Is your process consistent and stability. Is your process consistent and predictable? Identify and research unstable predictable? Identify and research unstable points and conditions. points and conditions. HistogramsHistograms––Determine the distribution of measurable data Determine the distribution of measurable data and the capability of your process to meet and the capability of your process to meet customer requirements. customer requirements. FlowchartsFlowcharts ––Show the improved process including all Show the improved process including all activities, decisions and measurement points.activities, decisions and measurement points.
XBar Chart Title
UCL=0.819
CL=0.716
LCL=0.6130.61
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n = 4 8LSL= -2 4
USL= 2 4Cp( sigm a) = 1 .0Cpk( sigma) = 1 .0Cp( Rd2 ) = 1 .2Cpk( Rd2 ) = 1 .2Pp= 1 .0Ppk= 1 .0Sigm a= 8 .0
Mean = 0
Median = 0
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Implementing Lean Six SigmaImplementing Lean Six Sigma
The Seven Deadly Mistakes:The Seven Deadly Mistakes:Committing to widespread implementationCommitting to widespread implementationFocus on training and teams, not resultsFocus on training and teams, not resultsWide focus, not laser focusWide focus, not laser focusTraining Black Belts to train everyone elseTraining Black Belts to train everyone elseClassroom training, not JIT trainingClassroom training, not JIT trainingImprovement teams, not SWAT teamsImprovement teams, not SWAT teamsLetting teams pick their own problemsLetting teams pick their own problems
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Secret to Lean Six SigmaSecret to Lean Six Sigma
Focus on “mission and profit critical” problemsSet BHAGs -Big Hairy Audacious Goals to reduce defects, delay, deviation or cost by 50% or more in six months or less.Simplify and Streamline: Focus on removing NVA—Non-value addedOptimize—Eliminate Defects and DeviationImplement solutions and verify resultsImplement solutions and verify results
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Power Laws (4-50 rule)
• Start small for big results • Engage informal leaders• Use the 4-50 rule
Crawl-Walk-Run to SuccessImplementing Lean Six SigmaImplementing Lean Six Sigma
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Lean Six Sigma = ProfitsLean Six Sigma = Profits
To accelerate your speed…To accelerate your speed…Eliminate delay and movement (3Eliminate delay and movement (3--57 Rule)57 Rule)
To increase your returns…To increase your returns…Narrow your focus Narrow your focus (4(4--50 rule)50 rule)
To engage your people..To engage your people..Reduce the number of people involvedReduce the number of people involvedEngage informal not formal networkEngage informal not formal network
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Lean Six Sigma ResourcesLean Six Sigma Resources
QI Macros SPC Software for Excel.
Lean Six Sigma Systems
Training and Consulting
Double Your Profits
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Free Resources and Contact InfoFree Resources and Contact Info
30 Day Eval Copy of the QI Macros: qimacros.com/free-resources Six Sigma Quick Reference Card: www.qimacros.com/JobAid.pdf
Lean Quick Reference Card: www.qimacros.com/pdf/leanaid.pdf SPC Quick Reference Card: www.qimacros.com/sustainaid.pdf Jay Arthur KnowWare® International, Inc. 2696 S. Colorado Blvd., Suite 555 Denver, CO 80222 (888) 468--1537 [email protected] www.qimacros.com