Lean Six Sigma Tools and Techniques Green Belt Certification

Session Two(Best Practices Improvement Tools and Approaches)

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Session 2: Agenda Session 2: Agenda– Identify Teams Products and

Services

– Project Management Role

– SIPOC Diagramming

– Operational Definitions

– RUMBA & SIFOC

– Areas of Waste (Muda)

– Define and Map Processes

LEAN SIGMA Lifecycle TollgatesLEAN SIGMA Lifecycle TollgatesLEAN SIGMA Lifecycle TollgatesLEAN SIGMA Lifecycle TollgatesDEFINE MEASURE ANALYZE IMPROVE CONTROL

Develop Project

Team Charter,

& Project Plan

Develop the

SIPOC

Diagram

Develop the

CTQs &

SIFOC

Create

Measurement

Scorecards

Implement

Project Data

Collection Plans

Analyze

The

Data

Analyze

The

Process

Analyze

The Root

Causes

Generate

Solutions

Select/

Test

Solutions

Determine

Lean

Control Points

Implement

The Lean

Management

Response Plan

1

2

3

4 6 9 11

57

8

10 12

Project Management Essentials

There are four essentials to Effective Project Management:

• Common Vocabulary

• Teamwork

• The Project Cycle

• The Project Management Elements

Common Vocabulary• To succeed at Lean Six Sigma, you first have to

communicate clearly• The successful implementation of Lean Six Sigma

involves areas of conflict that can only be resolved with clearly defined terms

• Communication problems lead to conflict and destroy teamwork

• A common vocabulary is needed before you can develop teamwork

• To communicate clearly, you first have to think clearly• Acronyms can simplify communications if they are

clearly understood by the team.

Lean Six Sigma Common VocabularyLean Six Sigma Common VocabularyLean Six Sigma Common VocabularyLean Six Sigma Common Vocabulary

Lean Six Sigma is a quality program that: • Improves your customer’s experience• Lowers your costs • Builds better leaders• Reduces waste and inefficiency

LSS Streamlines core and support processes so that clients get what they want, when they want it, and when it was promised

Some Basic Definitions

“Lean Operations is a systematic approach to identifying and eliminating

waste (non-value-added activities) through continuous improvement by flowing the product at the pull of the

customer in pursuit of perfection”

Each LSS project needs its own Each LSS project needs its own terminology baseline. For example:terminology baseline. For example:

TeamworkEffective teams share several common characteristics:• They can articulate their common goal which they are committed

to achieve• They acknowledge their interdependency, coupled with mutual

respect• They have accepted a common set of boundaries on their

actions—a common code of conduct• They accept the fact that there is one reward they will all share• They follow the metaphor of an orchestra with a common score

and a conductor• Both need direction from a commonly defined script (Charter &

Project Plan) which serve as a single point of accountability for setting the tempo of the project

I – Forming II – Storming

III – Norming

IV - Performing

Stage Theme Task Outcome

Maintenance Outcome

Forming Awareness Commitment Acceptance

Storming Conflict Clarification Belonging

Norming Cooperation Involvement Support

Performing Productivity Achievement Satisfaction

Adjourning/ Reforming

Completion Results Recognition/Loss

Time (variable)

Gro

up

Eff

ectiv

en

ess

Teamwork Group DynamicsTeamwork Group Dynamics

V – Adjourning/

Reforming

Project Management SimulationProject Management Simulation

• The Lean Six Sigma Project Management simulation is intended to learn a project Vocabulary, build Teamwork, understand the Project Cycle, gain a deeper understanding of the activities and elements contained in a good project plan

•

•Confirm Customer Requirements

•Define The Measurement Scorecards

•Create Process Maps & Value Stream Maps

•Gather Initial Data and Determine Current

Performance

•Stratify Data

•Establish Cost Benefit

Measure Measure

•Define Problem Theme

•Create Charter

•Develop Change Management Roles

•Develop Masterplan

•Create SIPOC Map

•Define potential Waste

•Measure CTQs

DefineDefine

•Analyze the Measurement System

•Analyze the Process

•Develop Areas of Waste Hypotheses

•Gather Causal Data

•Determine & Validate Root Causes

•Analyze Areas of Waste

Analyze Analyze

•Identify Breakthroughs

•Identify / Select Practical Approaches

•Perform Cost/ Benefit Analysis

•Design Future State: FMEA

•Establish Performance Targets

•Poke-Yoke

•Quick-and-easy Kaizens

Improve/

Innovate

Improve/

Innovate

•Implement Solutions

•Measure Results

•P-D-C-A Process

•Lean Management Scorecards

Control Control

DMAIC Project Management ElementsDMAIC Project Management Elements

The above elements are the 30 common building blocks of a LSS

Project Plan

The above elements are the 30 common building blocks of a LSS

Project Plan

Key Questions for Each ProjectKey Questions for Each ProjectKey Questions for Each ProjectKey Questions for Each Project

LEAN SIGMA Tollgate #3LEAN SIGMA Tollgate #3LEAN SIGMA Tollgate #3LEAN SIGMA Tollgate #3DEFINE MEASURE ANALYZE IMPROVE CONTROL

Develop Project

Team Charter,

& Masterplan

Develop the

SIPOC

Diagram

Develop the

Customer CTQ

Requirements

Create

Measurement

Scorecards

Implement

Project Data

Collection Plans

Analyze

The

Data

Analyze

The

Process

Analyze

The Root

Causes

Generate

Solutions

Select/

Test

Solutions

Determine

Lean

Control Points

Implement

The Lean

Management

Response Plan

1

2

3

4 6 9 11

57

8

10 12

What is a SIPOC Map?What is a SIPOC Map?

A SIPOC is a high-level map illustrating in a series of steps or activities how one or more kinds of INPUTs are supplied and changed into an OUTPUT, that is of value to the CUSTOMER, as shown on the SIPOC Diagram below.

“The Business Process”Supplier(s) Customer(s)

Inputs Outputs

High Level SIPOC Process MapHigh Level SIPOC Process Map

Input Process OutputsSupplier Customer

The person, group, orsources providing key information, materials, or other resources to the process

The information or materials provided by suppliers that are transformed in the process

The series of steps that transforms – and ideally, adds value to the input

Limit to 5-7 Steps in a Block Diagram

The product or service used by the customer

Limit 1-3 key outputs

The person, group, or process that receives the output of the process

If we can understand and manage the inputs, we can make a difference in the

outputs.

If we can understand and manage the inputs, we can make a difference in the

outputs.

Process Outputs are a Function of InputsProcess Outputs are a Function of Inputs

Process

Inputs (X) Outputs (Y)

)(xfY Gas Mileage = f (speed;idle time;engine tune,…)

LEAN SIGMA Tollgate #2LEAN SIGMA Tollgate #2LEAN SIGMA Tollgate #2LEAN SIGMA Tollgate #2DEFINE MEASURE ANALYZE IMPROVE CONTROL

Develop Project

Team Charter,

& Project Plan

Develop the

SIPOC

Diagram

Develop the

CTQs &

SIFOC

Create

Measurement

Scorecards

Implement

Project Data

Collection Plans

Analyze

The

Data

Analyze

The

Process

Analyze

The Root

Causes

Generate

Solutions

Select/

Test

Solutions

Determine

Lean

Control Points

Implement

The Lean

Management

Response Plan

1

2

3

4 6 9 11

57

8

10 12

Voice of the Customer

1. Needs and reasonable expectations of the customer

2. Critical-to-Quality (CTQ) characteristics

3. Generic service characteristics

• Reliability

• Responsiveness

• Accessibility

• Timeliness

• Accuracy

• Care and Concern

Six Steps to Tollgate 3

For your service or program:

1. Identify your customers

2. What are their most important requirements (CTQ)

3. Operationally define requirements (CTQ)

4. Qualify requirements (RUMBA)

5. Identify Measurements for customer requirements (Customer Scorecard -Long term/short term measures)

6. Validate your customer requirements (SIFOC)

Step 2: Establish CTQs

CTQs are requirements set between you and your customer

How to identify and validate needs. Ask them:–What problems do you have with the present way things are done?

–What would you like that you are not getting?–How well do we serve you with what we presently provide?

Step 3: Operational Definitions

Operational Definition (OD) Elements

•Criteria – standard against which to evaluate results

•Test – procedure for measuring the requirement

•Decision – determination whether the test results show the requirements meets the outcome

Exercise: Count the Pages

• PURPOSE: This activity is intended to help people understand the need for operational definitions.

• MATERIALS NEEDED: A book, a set of instructions, two envelopes (one with slips of paper inside and labeled 'PAPER'; the other labeled 'ANSWERS'), a pencil/pen if participants would not already have them.

• TIME approximately 5 to l0 minutes to discuss. This is a background exercise going on behind the scenes and needs to be at least 15 minutes into a session.

• GROUP SIZE: at least l022

Count the Pages Debriefing

• Often responses will vary by more than l0!

• This brings us to the need for operational definitions.

• Sometimes people will ask, "What is the RIGHT answer?"

• An operational definition will take into account how the 'measurement' will be used (to order paper, to set margins, to obtain enough change to copy the material, etc.)

• Different parts of the organization may use the same word (page) to mean different things!

23

OD Example: Wanted!!! Wool Blanket

We want a wool blanket that is 50% wool

• Criteria – Wool fibers evenly distributed throughout the blanket and comprise half the blanket’s weight

• Test – Analysis of samples which effectively measures the distribution and proportion of fibers accurately

• Decision – Wool fibers are evenly distributed and comprise half the weight = blanket is 50% wool

24

Step 4: Using RUMBA to Qualify CTQs

• Relevant or Realistic? You or your organization can meet the requirement in a reasonable timeframe with a realistic amount of effort.

• Understandable? Customers verify that you understand what they require and that their needs can be translated into written instructions.

• Measurable? Requirements can be specifically measured and objectively determined as to the degree or frequency.

• Believable or Baselineable? Employees will agree to strive for that level of achievement from which baseline measures can be developed.

• Achievable or Actionable? We can meet the requirement with specific action items in the timeframes required.

Step 5: Use CTQ Tree to Build Customer Scorecard

CTQ Tree Diagram is used to decompose broad customer requirements into more easily quantified requirements

• Left side – more general hard to measure requirements

• Right Side – More specific, easier to measure

• Categories – Vision, Long-term, Short term, Measures, Targets

Step 5 – Build Customer Scorecard - CTQ Tree DiagramStep 5 – Build Customer Scorecard - CTQ Tree Diagram

VisionFaster Reduce

Cycle Time

Cycle TIme

50% Reduction

Reduce Repair Time

Repair Time

50% Reduction

Better Reduce Defects

% Defective

50% Reduction

Reduce Rework

% Rework 50% Reduction

Drivers CTQs Measures Targets

Cheaper Reduce Cost of Failure

% Waste 50% Reduction

Step 6: Use SIFOC to Validate Customer Requirements

1. Survey

2. Interviews

3. Focus Groups

4. Observations

5. Complaint Processing

House of Lean Six Sigma

Lean Scorecards

Facility Layout Visual 5S System

POUSPull/KanbanStandardized Work

TPM Lean Tools Data Analysis Tools

Lean Enterprise DMAIC

Continuous Improvement

ValueStreamMapping

Impact of Non Value-Added Activities

20%

15%30%

10%

25%

Rework

Idle Time

CustomerValue Added Work

Bureaucracy

OperationalValue-Added

Work

65% of the work in most processes is non-value added!

Customer Value-Added Work

• The customer recognizes the value.

• Some change is being made to the service or product.

• This is the first and only time we’re doing it.

Bureaucracy• Work no one uses• Reports not used• Non-productive meetings

Operational Value-Added Work

• Required to sustain the workplace ability to perform customer value-added activities.

• Required by contract, laws or regulations, or for health, safety, environmental or personnel development reasons.

• This is the first and only time we’re doing it.

Rework• Not done right first

time• Poor quality,

rejects, returns• Checking• Approvals• Redundancy

Idle Time• Waiting/ Delays• Backlog

Learning to See Waste in the Process

• Whenever there is a product or service for a customer, there is a value stream. The challenge lies in seeing it.

• The 8 areas of waste act as organizational ‘cataracts’ which blind our view

The 8 Waste Areas of Lean:Organizational Cataracts

1. Overproduction

2. Motion

3. Inventory

4. Transportation

5. Waiting

6. Underutilized People

7. Defects

8. Over-processing

OMIT What U DO

Control Point #1. Overproduction

Making more-earlier-faster than

the next process needs it

• Just in case logic

• Unbalanced workload

• Unleveled scheduling

• False sense of efficiency

• Printing 20 copies of a report that only 3 people look at

• “Reply-all” e-mails when it pertains to only a few

• Waiting to “batch” work

2. Motion

Any movement by/of people that does not add any value

to the product or service

• Poor layout

• Inefficient workplace organization

• Lack of Standardization, inconsistent work methods

• People, Material, and Machine Ineffectiveness

• Where are critical resources located?

• How far does the paperwork travel?

3. Inventory

Any supply in excess of one-piece flow

•Just-in-case logic

•Unbalanced workload

•Unleveled scheduling

•Unreliable suppliers

•Reward system

•“Pack rat” mentality

•Printed forms or tags that become obsolete

4. Transportation

Moving people, materials, and information

around the organization

• Extra distance due to Poor layout

• Inefficient “flow”

• Carrying large quantities

• Moving boxes, supplies, things to a storage area

• Equipment transport

• Mail distribution

• Messenger services

5. Waiting

Waiting for man, machine, materials, information etc.

• Just-in-case logic

• Unbalanced workload

• Unleveled scheduling

• Unplanned downtime

• Needs not understood

• 80% of the wait comes from 20% of the process

• Waiting for files or information

• Need a signature

• Customer reply to a voice-mail or e-mail

• Someone is printing 50 copies of a 70 page report

• Starting a meeting

W TTick

Tock

6. Underutilized People

Not utilizing people’s time, experience, skills, knowledge, creativity

• Not utilizing teams

• Organization structure

• Poor hiring practices

• Little investment in training

• Lack of suggestions

• “That’s not my job” attitude

• Waiting for lead from management

7. Defects

Information, products, and services are inaccurate and/or incomplete

• Lack of standardization, inconsistent work methods

• Ineffective communication

• Little investment in training

• Have to fix paperwork that is not completely filled in or track down the right person to get the information

• An entry error causes the wrong actions like ordering too many or too few, etc.Report

Error X

X Error

Error X

8. Over-processing

Effort that adds little to no value to the product or service from the customer’s

standpoint• Just-in-case logic

• Scope Creep

• Inconsistent work methods

• Ineffective communication

• Redundant approvals

• Excessive information, extra copies

• Multiple sign-offs or checks (7 signatures)

• New cover sheets on a report

Activity ≠ Results

Six Lean Tools

1. 5Ss

2. Visual Workplace and Visual Controls

3. Value Stream Mapping

4. Learning to See ‘Muda’ by Standardizing Operations

5. POUS and Quality at the Source

6. Quick-and-Easy Kaizens

A workplace that is clean, organized, orderly, safe, efficient, and pleasant results in:

Fewer accidents

Improved efficiency

Reduced searching time

Reduced contamination

Visual workplace control

Improved morale

A foundation for all other improvementactivities

Why Start Lean With 5S?Why Start Lean With 5S?

Elements of 5S

Sort – Eliminate the clutter

“When in Doubt, Throw It Out!”

Set in Order – Organize and label, set boundaries and limits

“A Place for Everything and Everything in Its Place”

Shine – Clean everything, inside and out

“Inspection Through Cleaning”

Standardize – Keep maintenance checklists; make them visual

“Everything in a State of Readiness”

Sustain – Maintain discipline through systems and a supportive culture

What is a Value Stream?

•Definition: A sequence of processes that are connected by a common customer, product, or service request.

What is Value Stream Mapping?

• Definition #1: The visual representation of processes to meet customer demand.

• Definition #2: The process of identifying and charting the flows of information, processes, and physical goods across the entire supply chain, from raw material supplier to the possession of the customer.

• Definition #3: A basic planning tool for identifying wastes, designing

solutions, and communicating lean concepts.

Components of Standardized Operation

Consistency + Predictability = Less ConfusionConsistency + Predictability = Less Confusion

StandardStandard

Work Work

In-ProcessIn-Process

StandardStandard

Work Work

In-ProcessIn-Process

Take TimeTake Time

Work Work

SequenceSequence

Work Work

SequenceSequence

Point of Use Storage (POUS)

Materials, tools, parts, and supplies are all stored in the area in which they are used

Utilize a visual, minimum signal replenishment systems

Most efficient if vendor or material handling relationship allows for frequent, on-time, small replenishment deliveries

Quality at the Source

Minimize or eliminate rework at final inspectionMinimize passed-on defectsEliminate non–value-added processingImprove throughputMaximize employee satisfaction

How Many Measures to Collect?

•Two to Three Output measures

•One to Two Input Measures

•Six or Seven Process Measure

Business Process Overview – Types of Processes

•Core–The 5-7 high level Processes in an Organization

that can have a profound impact on a Strategic Business Objective.

•Key Sub–The Multiple Lower Level Processes that

Constitute a Core Process.•Enabling–Processes that may not have an Impact on

Customer Satisfaction but are Vital for the Performance of the Organization.

Lean Turnaround SimulationLean Turnaround Simulation

• The original events, problems and alternatives described in Turnaround are based upon actual case studies and reports in business publications

• The current version has been updated to reflect the kinds of situations faced by today’s organizations in attempting to become Lean

• Recommendations reflect our current understanding of effective Lean Management and Continuous Improvement approaches.

Lean Turnaround SimulationLean Turnaround Simulation

• The original events, problems and alternatives described in Turnaround are based upon actual case studies and reports in business publications

• The current version has been updated to reflect the kinds of situations faced by today’s organizations

• Recommendations reflect our current understanding of effective Lean Management and Continuous Improvement approaches.