Six Sigma Black Belt Week 1 - Institute of Industrial and ... · PDF fileBelt Lean Six Sigma Black Belt Week 3 Institute of Industrial Engineers 3577 Parkway Place Suite 200 Norcross,

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Lean Six Sigma Black Belt Week 3

Institute of Industrial Engineers

3577 Parkway Place Suite 200

Norcross, GA 30092

Chapter 3-1: Lean ‘Re-Entry’ and Process

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Lean Six Sigma Black Belt Week 3

Agenda Day 1

Lean ‘Re-Entry’

Process

Day 2

Value Stream Mapping

Flow

Day 3

Pull

Perfection/Eliminate Waste

Day 4

Voice-of-Customer/Quality Functional Deployment

5S

Day 5

A3

Kaizen © 2014 Institute of Industrial Engineers.

3-1-2

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Lean: Re-Entry

© 2014 Institute of Industrial Engineers. 3-1-3

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Taking it to the next level. . .

How do the elements of the Lean fit together?

How does a Lean “Black Belt" provide direction and vision towards a corporate lean effort?

How does a lean “Black Belt" apply the principles of lean across an environment?

© 2014 Institute of Industrial Engineers. 3-1-4 3-1-4

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Approach


20 40 60 80 100

Teaching one-to-one

Learning by doing

Discussion group

Demonstration

Audio/Visual

Reading

Lecture

Source: National Training Laboratory, United States

Effective Learning: % of Knowledge Retained after Completion

90%

75%

50%

30%

20%

10%

5%

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Burning Platform, Critical Issues, Challenge

Source: IOM

$

#

$

?


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Cost of Quality

Time

Cost of

Defects

Defect

Prevention

Defect

Identification

/ Fixes

Defect

Rework /

Repair

$

Design Process Operations Process Maintenance Process


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Cost of Care

Time

Cost

Healthy Design /

Prevention

Care Service /

Treatment

Emergency /

Crisis /

Trauma

$


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Designed for Lean Care

Time

Cost

Designed in

Care

Operational

Improvements

Facility

Overhaul

$


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Affordable Healthcare

• What is Affordable Healthcare?

• What does Lean have to do with it?

• How do you design in “Affordability”?

• How are you approaching “Design for Affordability”?


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© 2014 Institute of Industrial Engineers.

Value

Customer’s Capability

to Purchase

& Sustain*

Total Operational Cost / Total Cost of Ownership

Formula for Optimization Value >= Total Operational Cost / Total Cost of Ownership <= Purchasing Capability

No Value

Very High

Low

“Free” Low Very High High “Medium”

“Everyone”

Very Few

Few

“Influential”

“Masses”

“Middle”

Median

Intermediate

Higher

- Price & Cost Movement Variability +

Theory of Affordability

*Including Organizations

3-1-11 3-1-11

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Principles of Affordability

R

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N

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V

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C

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P

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&

Q

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X

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P

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M

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&

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P

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E

D

Leadership

Strategy

Systems

Competency and Capability Aligned with Target Markets’/Customers’ and Value

People

Purpose

Vision, Values, Mission

“House” of Affordability


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Health Care – An Ideal State

Predictable, repeatable care, exactly what the patient needs, defect free.

One by one, customized for each individual patient.

On demand exactly as requested.

Affordable care with a bottom line.

Immediate response to problems or changes.

Efficient care, No Waste

Effective care: Safe for patients, staff and clinicians: physically, emotionally and professionally.

Lean Six Sigma provides a framework… © 2014 Institute of Industrial Engineers.

3-1-13 3-1-13

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Lean Principles

Value

Value Stream

Flow

Pull

Perfection (Eliminate Waste)


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Flow

Sany’s Lean Thinking

Speed Quality Value

价值

价值流

流程

拉动

完善

Lean


http://www.perkinswill.com/work/duke-medicine-pavilion.html

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Healthcare is about LEAN

The Healthcare House of Lean

Right-on-Time

Efficient

Response

Signals

Change Over

Takt Time

Human Touch

Automation

Error Proofing

(Fail-Safe)

Status

P-D-C-A

Strategic Planning

(Policy Deployment)

5S (Organization), Visual Management, Quality Tools,

Standard Work (Standardization)

Rapid

Improvement

Root Cause

Healthcare Value

Stream Mapping

Problem

Solving


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Lean Philosophy

All forms of waste must be identified and eliminated.

This involves all activities of the enterprise including:

design

operations

customers

supply

etc.


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Lean Overview

Lean emphasizes the elimination and prevention of waste.

Lean is focused on the customer by addressing what is value added and what is non-value added.

Products and services are delivered Just-in-Time meaning in the right amounts, at the right time and in the right condition.

Products and services are produced only when a signal is received from the customer and are pulled through the system.

A lean system allows for an efficient response to fluctuating customer demands and requirements.


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Lean Benefits

Eliminate waste

Reduce non-value added activities

Improve process flow


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Essential Elements to Become Lean and

Sustain Lean

There must be a clear, compelling, and urgent reason to change.

Cross-functional leadership must proactively and visibly lead the organization through the change process. This means getting the right leaders to work together to develop a vision of what the organization needs to become and a strategy for getting there. The “right leaders” are those with enough power to lead the change throughout the organization.

Leadership must continually communicate and role model the new vision and the strategies.

Leadership must break down barriers to making the necessary improvements.


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Essential Elements to Become Lean and

Sustain Lean Cont’d

Leadership must engage the people closest to the top priority problems, or the opportunities, to identify, design, develop, plan, and implement the improvements.

Leadership must leverage the successes and key learnings for making improvements by eliminating waste in other areas.

Leadership must help everyone in the organization understand the connection between the improvement activities and results with the vision of the organization so the new behaviors become the part of the “way we engage our people and run our business.”


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The Lean Environment

Successful Lean implementation requires the total immersion of top management.

Leaders must create an environment that allows members to participate in the decisions that affect their work, voice honest opinions and constructively criticize and challenge tradition.

This may involve reorienting the organization and changing entrenched behavior.

Communicating a clear vision. Creating a sense of urgency and emphasizing continual

training. Stimulate workers and managers alike to engage in the

kind of cooperative experimentation that is the cornerstone of a vital, learning organization.


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Value Added vs. Non-Value Added Activity

Value Added

Value adding activity is any activity that transforms raw material to meet customer requirements. These are things the customer is willing to pay for.

Non-Value Added

Non-value adding activities are those activities that take time, resources, or space but do not add to the value of the product or service. These activities should be eliminated, simplified, reduced or integrated.


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Lean = Eliminating the Wastes

Typically 95% of Total Lead Time is

Non-Value Added!!!

RUN

TIME

Total Lead Time

Order Processing, Transport, Storage, Waiting, Rework,

Machine Setup, Inspection, Machine Breakdowns, etc...


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Just-in-Time System

Key factors in lean include quality, quantity, timing and cost.

Quality must be built into the process.

The equipment and process must be robust in order to continuously meet tolerances and specifications.

The system must also be highly flexible to adapt to wide demand fluctuations.

The processes and equipment must respond easily and swiftly to increases or decreases in service requirements.

Services must be delivered on time to satisfy the customers demands.


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Key issues of quality, quantity, timing, and

cost

Quality

Build Quality into the Process

Understanding process capabilities

Appropriateness of specifications

Preparing gages

Preparing work instructions

Process maintenance

Equipment maintenance

Process controls

Inspection systems

Quantity

Highly Flexible and Adaptable

Processes and Equipment

Flexible processes

Flexible equipment

Small equipment – smaller footprints

Convertible equipment

Concentrated processes

Timing

Deliver on schedule

Scheduling

Shortening lead times

Flexible systems

Cost

Reduce capital and product costs

Low cost designs

Calculate running costs in cost

calculations

Mindful of excess quality

Standardized tooling and equipment


3-1-26 3-1-26

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Continuous Improvement

Continuous improvement principles include simplifying the process, flexible equipment, flexible processes, TAKT time, chaku-chaku, cellular manufacturing, u-shaped cells, ergonomics, hanedashi, jidoka, poke-yoke, and eliminating waste.

The purpose of lean is to continuously improve designs and processes and, in effect, become more competitive.


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Quality “Iceberg Effect”

Lost Sales

Lost Customer Credibility

Lost Customer Loyalty

Rework

Warranty Scrap

Repair Added Inspection

Excess Inventory Engineering Changes

Increased Number of Setups Process Changes

Expediting Costs Longer Cycle Times Late Delivery Charges

Non-visible

5-8% of sales

Visible

2-3% of Sales

Hidden

?% of Sales


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Quality Work Environment

Simplify

Eliminate what is not needed

Straighten

Organize

Scrub

Clean work area

Stabilize

Maintain and improve

Sustain

Make 5S a way of life


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Five Lean Principles

Begin with the Customer!!!

Specify what creates value from the customer’s perspective

Identify all steps across the entire value stream Make those actions that create value flow Only make what is pulled by the customer Just-in-Time Strive for perfection by continually removing successive

layers of waste

Focus on understanding

the first four principles.

Perfection is ongoing.


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Toyota Production System

Taiichi Ohno, Founder of the Toyota Production System (TPS)

Ohno – “A major condition for production under the Toyota Production System is the total elimination of waste, inconsistency, and excess.”

Ohno – “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.”


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Toyota Production System

Ohno uses the words: Harmony Standardization Inconsistency Noise Level loading Balance

“Work like the tortoise, not the hare”

Level out the workload Value reliability over speed

REDUCE VARIATION!!!!!


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Toyota System Rules of Engagement

Rule 1 – all work shall be highly specified as to content, sequence, timing, and outcome.

Rule 2 – every customer-supplier relationship (internal & external) must be clear and direct.

Rule 3 – The path followed by each product must be simple and direct.

Rule 4 – any improvement must be made in accordance to the scientific method, at the lowest level possible in the company, under the guidance of a trained expert.


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Question

How do you define lean?


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Moving away from the silo. . .

Change our focus from applying the tools in silos

Integrate lean throughout the entire enterprise

Become a lean enterprise


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Creating partnerships

Break down the silos

Build relationships throughout the enterprise


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Lean Strategy Deployment

What do we need? A system designed to achieve world class excellence in

customer satisfaction. The system, beginning with the voice of the customer, continuously strives to improve

quality, delivery, and cost. The system provides the necessary tools to achieve specific strategic objectives

with the involvement of all employees.


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Business System Alignment

Policy Deployment

Voice

of the

Customer

Customer

Satisfaction

Imp

rovem

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nd G

row

th

Employee

Involvement

5S SMED Visual Mgt Cellular Mfg Standard Work

Six Sigma QFD TPM Takt Time Flow Kanban DFM

Quality and Timeliness of Service

Customer Deliver

Cost Improvement


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NCR Retail Systems 1990-1994

Performance Measure 1990 1994

Customer Satisfaction 72.1% 85.6%

Employee Satisfaction 52.0% 65.0%

Ontime Delivery 60.2% 92.0%

Quality 87.0% 99.2%

Profitability (HDW Revenue) $220M $290M

Profit/Loss ($5M) $3M

Employee Bonus 0% 3.02% 3-1-39 3-1-39


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F/A-18 “Super Hornet” 2006-2010

Performance Measure 2006 2010

Rate 1/5.5 days 1/4 days

Quality @ 6 s > 6 s

Price $55M $49.9M

Pg 7, Par 3

3-1-40 3-1-40 © 2014 Institute of Industrial Engineers.

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DoD MRAP 2007-2010

Mine Resistant, ambush Protected Vehicle

Integration 5/day (8/2007) 50/day (11/2007)

0 (1/2007) 1500 (1/2008) 27,500 (12/2010)

Lives Lost Lives Saved

Continuous Improvement

3-1-41 3-1-41 © 2014 Institute of Industrial Engineers.

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Lean Healthcare

What do you plan to do to make an impact?


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Lean Process


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The Race Car


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Simulation

Using the instructions, and the process you create, build 12 race cars using a one-piece-flow approach.

Record the following:

Time for the first car

Total time

Number of defective race cars

Number of good race cars

Your process

Your efficiency and effectiveness


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See It.


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Process


Supplier(s) Input(s) Process Output(s) “Customer”

_______

_______

_______

_______

_______

_______

_______

_______

_______

_______

_______

_______

_______

_______

_______

_______

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Process

Plan

Material

Tools/Visuals

Layout

Set Up

Inventory

Flow

Timing

Etc.


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The Race Car


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Simulation

Using the instructions, and the process you create, build 12 race cars using a one-piece-flow approach.

Record the following:

Time for the first car

Total time

Number of defective race cars

Number of good race cars

Your process

Your efficiency and effectiveness


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Process Improvement

Requirements

Time

Quality

Cost


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Process Discussion

What exactly made a difference?


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Closing thoughts on Lean and Process?


Documents

Six Sigma Black Belt Week 1 - Institute of Industrial and ... · PDF fileBelt Lean Six Sigma Black Belt Week 3 Institute of Industrial Engineers 3577 Parkway Place Suite 200 Norcross,