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Lean/Six Sigma forPass Bureau AssociationHow do I do more with less and still please my customersLean/Six Sigma For Pass Bureau Association Presented by Michael RyerFrontier Airlines Continuous Improvement Manager (Retired)1Heres what I do for funLean/Six Sigma For Pass Bureau Association

I live in a tornadoA pass bureau manager told me:We need to streamline our process, do more with less. We are pulled in 10 directions at one time. We receive a pass request and work them in date order. We have to touch one 4 to 5 times to see why its sitting in the mailbox. Agents attach their name to it and it sits until the more urgent ones are processed. Occasionally some are missed because the timed out. We have the same deal with company business (COBUS) travel. We work them by date, not when weve received them, so we may miss one thats been here a long time, or, the flight is full by the time we get to it. With COBUS, we may get the air done and hotel and car are still pending. We set it aside and start the next one. Then we have to determine if the hotel and/or car has confirmed and which employee the confirmation was for. Lean/Six Sigma For Pass Bureau Association Lean/Six Sigma For Pass Bureau Association In the beginning was the PlanAnd then came the assumptions and the assumptions were without formand the Plan was completely without substance and the darkness fellupon the faces of the workers.

The workers spoke amongst themselves, saying, This Plan is a crockof crap and it stinketh!

And the workers went unto their supervisors and sayeth unto them, It is apile of dung and none may abide the odor thereof!

And the supervisors went unto their managers and sayeth unto them, It is acontainer of excrement and it is very strong such that none may abide it.

And the managers went unto their directors and sayeth unto them, It is a vessel of fertilizer and none may abide its strength. And the directors wentunto their vice presidents and sayeth unto them, It contains that which aidsplant growth and is very powerful, indeed.

The vice presidents went before the president and the chairman and sayethunto them, This powerful new plan will actively promote the growth and efficiencyof the company and this product line in particular. And the leaders looked uponthe Plan, saw that it was good and it became POLICY.Lean/Six Sigma For Pass Bureau Association Big Picture of Lean/Six SigmaWhat is it?

Improvement EmphasisTimeReduced Costs (COQ*) Over TimeLean/Six Sigma For Pass Bureau Association Big Picture of Lean/Six SigmaWhat is it?

Improvement EmphasisTimeReduced Costs (COQ*) Over TimeDrive Out Waste Identify Waste Five S Lean Tools and TechniquesBig Picture of Lean/Six SigmaWhat is it?Lean/Six Sigma For Pass Bureau Association

Drive Out Waste Identify Waste Five S Lean Tools and TechniquesDrive Out Variation Process Control Six Sigma ToolsImprovement EmphasisTimeAdvanced Quality Systems OversightReduced Costs (COQ*) Over Time*Cost of QualityLean/Six Sigma For Pass Bureau Association Boeing Commercial Aircraft View of Lean, but, it is not just for manufacturingLean Business Strategy Develop and Deploy a Lean Strategy to Ensure Lean GainsLead Time Minimize Lead Time for Operational FlexibilityOn Time DeliveryUse of Kanban Use Kanban and Build to Customers Demand ScheduleE-Commerce Data Links for RFQ, Production and Billing to Ease Information FlowStandard Work Flow Use Takt Time, Standards and Continuous Improvement for Best Work FlowSet-Up Reduction Use Pallets, Shadow Boards and SMED to Speed Through PutVisual Management Production Status Available at a Glance for Exception ManagementTotal Productive Maintenance Data Driven Equipment, Tooling and Machine Maintenance for More Up TimeMethod Sheets Optimize Method Sheets and Illustrate Entire Operation to Reduce Confusion5-S (6-S adds Safety) Sort, Straighten, Shine, Standardize and Sustain Operational EfficiencyLean Element Desired CharacteristicsDeliver the Right Part, at the Right Time, to the Right Location, in the RightPackaging to Meet Customer Inventory RequirementsWhat is Lean/Six Sigma?W. Edwards Deming and 14 step methodologyGoal Post MentalityVariationStandard DeviationWasteDMAICData ManagementWe are pleasure/pain animals. If I have pain, I want to move away from it. Lean/Six Sigma helpsdefine what is causing me pain and helps build a repeatable methodology to avoid it. To do this, I need to talk about some things:Lean/Six Sigma For Pass Bureau Association Does it work?Boeing Aerospace - Reduced billing errors to zero, billing cycle time from 20 days to 3, reduced technical order processing time by 50%PIE Trucking - Reduced freight bill errors from 10% to 1% and improved productivity 30%US Department of Education - Reduced application processing time for certifying higher education institutions by 20%Virtua Health Care Clinic - Streamlining payroll process errors reducing rework by 78%, decreasing over-processing by 58%, and saving $3,000 in paper costs.Frontier Airlines Developed centralized weight and balance program. Saved $750 M in first year. Avoided major FAA LOI fine.

Lean/Six Sigma For Pass Bureau Association Demings 14 PointsCreate a constancy of purpose toward improvement of product and serviceAdopt a new philosophy about responsibility and leadershipCease dependence on inspection to achieve qualityEnd the practice of awarding business to the lowest bidder. Instead, minimize your cost.Improve processesInstitute training on the jobAdapt and institute leadershipDrive out fear of changeBreak down barriers between departmentsEliminate slogans, exhortations and targets for the work forceEliminate quotas for the workers and numerical goals for managersRemove barriers robbing people of pride in workmanshipProvide education and self improvement for everyonePut everyone in the company to work to accomplish transformationLean/Six Sigma For Pass Bureau Association Goal Post Mentality or if its in specification, its good to go!LSLUSLTarget ValueLean/Six Sigma For Pass Bureau Association JUNKJUNKWhat is variation?Cause and Effect-The notion of the predictability of something happening when a known set of circumstances are presentCommon Cause-Differences in the outcome of a process which are attributed to random happenings. Examples of common cause variation are:FloodsStrikesElectionsAssignable Cause-Differences in the outcome of a process attributed to a specific happening. Examples of assignable causes of variation are:PeopleProcessMaterialMachineMeasurementEnvironment

Lean/Six Sigma For Pass Bureau Association Six Sigma is really about Standard DeviationStandard Deviation-Measures and quantifies variation. Its in the same units as the dataTripBooking Time115.0025.00325.004120.0056.00624.00738.008147.00961.001043.00AVEREAGE48.40SIGMA45.92TripBooking Time17.0029.0036.0048.0055.0065.0078.0087.00910.00104.00AVEREAGE6.90SIGMA1.81Lean/Six Sigma For Pass Bureau Association Same flights but different processing times. Which process is more in control?Not CapableCapableIt is all aboutWASTEWe want to reduce WASTE over timeLean/Six Sigma For Pass Bureau Association

USL

Target

LSLOver the long haul, we want less of this!Over the long haul, we want more of this!PerformanceTimeUCLLCLContinual ImprovementLets define WASTEThere are defined kinds of waste:Waiting - for anything or anyoneExcess Motion - motion or movement should add value to the product or serviceConveyance - transporting farther than necessary, temporarily locating, restacking, or moving parts, people, and informationCorrection/Rework fixing junkOver-production - producing more that required or producing too soon Inventory - too much of anything is waste; anything unneeded is wasteProcessing - things the customer does not want nor recognize

Lean/Six Sigma For Pass Bureau Association Talk about a revolutionRemoving WASTEC=P+W+C+VLean/Six Sigma For Pass Bureau Association P = The pain of making a changeW = The willingness of the folks in the process to make a changeC = The cost, real and imagined, of making the changeV = The vision of what the world will look like after the changeChange is hard and it can be managed!How do we get rid of WASTE?DMAIC is an acronym for:Define What is the problem, what is the existing process like, what does perfection look like?Measure How big is the problem, how often does it happen, what is the impact when it does happen, how does the process work without the problem?Analyze What does the data tell me about the problem?Improve What can I do to reduce or eliminate the problem?Control How do I make sure the problem never comes back?Lean/Six Sigma For Pass Bureau Association First, we need to define our processLean/Six Sigma For Pass Bureau Association ProcessFeed BackInputOutputBoundaryBoundaryDefine Customer InterfacesLean/Six Sigma For Pass Bureau Association 123This is the boundary between two processes. Process 1 generates products (deliverables) which feed into Process 2. The speed of delivery, quantity and quality are critical at this point. Feedback occurs across this interface to ensure Process 1 makes what Process 2 needs and Process 2 tells Process 1 if it is okay.S I P O CHow do we define the process?Process DocumentationIdentify areas where the process is not being followedDifferences due to error?Differences due to personal preference?Differences due to doing it a better way?What would happen if the process were run as designed?Lean/Six Sigma For Pass Bureau Association Found some problems?Clean up em up with Five SLean/Six Sigma For Pass Bureau Association The Five Ss are1. Sort Segregate and discard un-needed stuff in the process area2. Straighten Arrange and identify the needed things for the process3. Shine Keep the process area neat and orderly on a daily basis4. Standardize Run the process the same way, everyday5. Sustain Do not let the process slip back into old waysHow do measure the process?In God we trust, all others bring facts Lets go see if what we think is a problem, really is a problem.Data Gathering Tools:Process MapProcess AuditsTime Motion StudiesReview of Historical DataReview of Quality ProblemsLean/Six Sigma For Pass Bureau Association How do we analyze all this data?Lean/Six Sigma For Pass Bureau Association WASTEPeopleProcessMachineMaterialGoal = Reduce WasteEnvironmentMeasurementHow do we select what to improve?Sorting the trivial many from the significant fewMulti-VotingBang for the buck and return on investmentBest ROI is 18 to 24 monthsEasy or HardLow hanging fruit versus planting a new orchardPDCA/SDCADefine new performance requirements and how to get there and then how to sustain the new processLean/Six Sigma For Pass Bureau Association How do we control the new process?Capability analysis through audit and customer satisfactionCapture the process and keep it wholeMistake ProofingStandard ProceduresResponsibility AuditsFinancial Analysis Did we save any time and money?Lean/Six Sigma For Pass Bureau Association Where do we look for the next improvement?We have learned how to systematically look at our processWe have established performance measures and metrics the process is capable of producingWe focus on our customer needs and the airline needs for an efficient (no waste) and effective (meets internal and external customer requirements) processLean/Six Sigma For Pass Bureau Association Lean/Six Sigma For Pass Bureau Association Tha, Tha, Thats all folks

ReferencesThe Black Belt Memory Jogger GOAL/QPCLean Thinking - Womack and JonesQuality is Free CosbyWhat is Six Sigma Pande and HolppJuran on Leadership for Quality JuranSchaums Outline Series, Statistics - SpiegelThe Goal GoldrattTeaching the Elephant to Dance - BelascoLean/Six Sigma For Pass Bureau Association