Riding Six Sigma to Implement Lean

Riding Six Sigma to Implement

Lean

Juan AmadorLean Sigma MBB

Copyright Medtronic 2004

History and BackgroundMedtronic Mission


History and BackgroundThe need for Lean Sigma SolutionsTM

Corporate MissionCorporate Mission• To contribute to human welfare by

application of biomedical engineering in the research, design, manufacture, and sale of

instruments or appliances that alleviate pain, restore health, and extend life.

• To direct our growth in the areas of biomedical engineering where we display maximum strength and ability; to gather people and facilities that tend to augment these areas; to continuously build on these

areas through education and knowledge assimilation; to avoid participation in areas where we cannot make unique and worthy contributions.

• To strive without reserve for the greatest possible reliability and quality in our products; to be the unsurpassed standard of comparison and to be recognized as a company of dedication, honesty, integrity, and service.

• To make a fair profit on current operations to meet our obligations, sustain our growth, and reach our goals.

• To recognize the personal worth of employees by providing an employment framework that allows personal satisfaction in work accomplished, security, advancement opportunity, and means to share in the company's success.

• To maintain good citizenship as a company.

Speed and Quality, Design For Six Sigma

Learning culture

Process excellence

Internal cost, turns, etc.

Life tools and development

Process compliance excellence


History and BackgroundHistory

Founded in 1949 as a medical equipment

service company


History and BackgroundHistory

• First external wearable pacemaker

• Expanded into implantable technology, other devices


Medtronic TodayBreadth of Our Business


Medtronic TodaySteady Growth


Medtronic TodayCommitted to Innovation - Research and Development

Two-thirds of our revenues are from products introduced in the last two years


Medtronic TodayCommitted to Innovation


Medtronic TodayLeveraging Technology

Leveraging experience in electricalstimulation for …

• Heart conditions

• Parkinson’s disease

• Pain

• Digestive disorders

• Bladder control problems


• 30,000 Employees• 120 Countries

Medtronic TodayGlobal Reach


Medtronic TodayEvery 6 Seconds...

6seconds


Process Science

Pursue variation and waste

Completes a Belt’s toolbox

Both implemented via DMAIC

Ride the culture change – examples


A 3σ process because 3 standard deviations fit

between target and spec

Target CustomerSpecification

1σ

2σ

3σ

Before

Target CustomerSpecification

After

2σ

6σ

6σNo Defects!1σ

3σ4σ5σ

3σ

DMAICDMAICIs the Is the

methodologymethodology

Six SigmaSix Sigma makes a science makes a science

of process of process capabilitycapability



DMAIC DMAIC is the is the

methodologymethodology

LeanLean makes a makes a

science of science of process flowprocess flow



Lean Thinking steps:

SPECIFY VALUE – define process in terms of customer value

MAP THE VALUE STREAM – with customer focused measurements

MAKE THE VALUE FLOW – analyze for waste elimination

PULL – improve flow via customer pull

SEEK PERFECTION – continuous improvements and controls



Completes a Belt’s toolbox


MJ

MH

LW

Submis s ion Que s t io n 1

Que s t io n 1 Ans we r 1

Ans we r 1Que s t ion 2 Que s t ion 3

Ans we r 2Ans we r 3

Que s t ion 2 Que s t ion 3

Ans we r 2Ans we r 3

Que s t io n 4Ans we r 4Ans we r 5

Que s t io n 4Ans we r 4Ans we r 5

Que s t ion 6 Ans we r 6

Ans we r 6Que s t ion 6

Que s t ion 5

Que s t ion 7Que s t ion 8Que s t ion 9

Que s t ion 7Que s t ion 8Que s t ion 9

Ans we r 7Ans we r 8Ans we r 9

Ans we r 7Ans we r 8Ans we r 9

17 403 Cyc le

Ans we r 11

Que s t ion 10

Que s t ion 11

Que s t ion 11

117 41 60 28 75

56

211

84 67 6 172 521

Ans we r 12

68Ans we r 10

Ans we r 12

Que s t ion 12

26 84Approva l

Ans we r 11

Que s t ion 12

Source DF Seq SS A dj SS A dj MS F P

SBU 3 9233.5 1861. 5 620.5 2. 37 0. 131

C ategory 2 2402. 4 2269.0 1134.5 4. 34 0. 044

C lass 2 38.1 252. 6 126.3 0. 48 0. 631

Type 5 5484.4 5484.4 1096. 9 4. 20 0. 026

E rror 10 2613.5 2613. 5 261.4

Total 22 19771. 8

S = 16.1664 R- Sq = 86. 78% R- Sq(adj) = 70.92%


Using statistics to find biggest source of time variation


Lean = Lean = Balanced Balanced

FlowsFlows

66σσ == ReducedReduced VariationVariation

Process Process Step 1 Step 1




VariationVariationBeforeBefore

VariationVariationAfterAfter




Before

After

Printing, packing operation


Process Science


In Six Sigma:

Y = f(x1, x2…?)

the challenge is to find the trivial many X’s, then identify the vital few X’s

Process Science

In Lean:

Y = f(x1, x2…x18)

the challenge is to identify the vital few X’s


Analog adjustment, reprogram timer

Kanban, 5S, (Inbox signals, simplify/sort

the work station)

Methods to improve and control

Voltage, timeLabor time, move time (review the account, walk to the mail drop)

Xs

Weld StrengthLead Time (time to process expense

accounts)Y

Six SigmaLeanExamples of Ys, Xs

and Methods in both Lean and Six Sigma

Process Science


Lead Time

Environment Methods

Material

Machines

Personnel

NV A Inclusion

Labor/work Time

Mov e Time

Internal Setup Time

External Setup Time

Static/Dy namic machine

Machine/work Time

C apacity

% Downtime

Transfer Lot S ize

Process Lot S ize

Effectiv e hrs.

Boost %

Day s

Shifts

Demand/product mix

O ptions %

Rework/scrap %

The 18 Xs of Lean

Lead Time

Environment Methods

Material

Machines

Personnel

NV A Inclusion

Labor/work Time

Mov e Time

Internal Setup Time

External Setup Time

Static/Dy namic machine

Machine/work Time

C apacity

% Downtime

Transfer Lot S ize

Process Lot S ize

Effectiv e hrs.

Boost %

Day s

Shifts

Demand/product mix

O ptions %

Rework/scrap %

The 18 Xs of Lean

Process Science


TRANSFER LOT SIZE

PROCESS LOT SIZE

OPTIONS

REWORK

DOWNTIME

EXTERNAL SET UP

INTERNAL SET UP

ATTENDED MACHINE

UNATTENDED MACHINE

MOVE

LABOR

TOTALS

Lead Time formulas are calculated with large

spreadsheets

Many Xs

Y

Process Science


Process Science


Current

0.01.02.03.04.0

Cri

mp

Dis

tal t

o

Ba

ckfil

l

Inst

all

Inst

all & Fill

Bac

kfill

Sta

ke I

S-1

Trif

ur.

Bac

kfill

Lase

r

Lase

r

Ba

ckfil

l

Pre

p D

f-1

Crim

p D

f-1

Insi

tu D

f-1

Inst

all

&

Fin

al Fill

Ste

rile

Process Science

Balanced to Target

0%

50%

100%

150%

200%

Op10

Op40

Op70

Op100

Op130

Op160

Op190

Op220

Op250

Op280

Op310

Op340

Op370

% used capacity % available capacity % of capacity

Before

After


Process ScienceDistribution center label print and ship


Ride the culture change – examples


InOut

Unpacking (Outer carton)

LibraryMJ

Storage Obsolete Demo. Hold

Domesticprocured

MJStorage

VJOperationStorage

NTStorage

Packing material

ＭＪ Storage

ＭＪ StoragePacking

Packing material

ＶＪHart Valve operation

INC

Office

OfficeRepair

Experiment

CheckReceiving Material & labelstorage

Telemetry check

Hard product

Labeling AssemblyAppearance check

QA check

Receiving registration

Decision for release

MJ NT・VJ

Shipping

Import product receiveReturn product receive

　　　　Return operationDecision for release Rework　

1F

2F

3F

4F

6F

MJStorage

Packing material

ＭＪ Stock MJ Stock



INC

Customer Service

OfficeRepair

Experiment

Receiving Unpacking FG

MJ

Shipping



1F

2F

3F

4F

6F

Pick Label Pack and ShipStaging

MJStorage

Office Space for Kawasaki

MJStorage

Packing material




INC

Customer Service

OfficeRepair

Experiment

Receiving Unpacking FG

MJ

Shipping



1F

2F

3F

4F

6F

Pick Label Pack and ShipStaging

MJStorage

Office Space for Kawasaki

Before After (4Q ‘ 04)

Cycle time and regulatory improvements

Inventory, 20 FTEs, 2 Floors, 11 days

Example: Japan distribution center


75% Inventory reduction

Example: Discrepancy report processing

Inve

ntor

y


Sample binning system – client FIFO drop off bins

Heijunka flow control

From 40% on time to 96%

Example: Chem. lab scheduling


From 1 hr 11 mins to < 5 mins

Before After

Example: Lot card issuance


Example: Auto Allowance

Process time cut in half


• Lean and Six Sigma go together – both make a Lean and Six Sigma go together – both make a science out of the processscience out of the process

• Ride the global Six Sigma passion, employees Ride the global Six Sigma passion, employees and infrastructure to implement Lean and infrastructure to implement Lean

• Enhances belt career developmentEnhances belt career development

Ride the culture change – Summary

Medtronic does not do Medtronic does not do “lean or six sigma,” “lean or six sigma,”

we do Lean Sigma Solutions we do Lean Sigma SolutionsTMTM everywhere. everywhere.


Cu

ltu

re

Time

Ben

efit

s

Lean Sigma StrategyLean Sigma Strategy

Vision: Unlocking the potential in Medtronic’s people and processes

Curiosity

Project Wow

Leadership Standard

Next Level Enablers: Deploymeter Tool Values based award Add to champ guide Top belts into top jobs MDT Wide Value Usage Values in Belt training Custom Comp questions FY06 Emerging Leaders Projects Big Y focus roles Org Plans/data mining/BU

Strategic effort to date

Lean Sigma and Leadership


Thank You

Riding Six Sigma to Implement Lean

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