The S.Q.S. Methodology

The S.Q.S. Methodology

founder of freeleansite.com For over 30 years, Jay has been a lean advocate promoting improvement initiatives within Business and Industry. Hes enjoyed stints w/ G.E., Honeywell, Motorola and others. Earned degrees in Engineering, Business and Human Resource Development.

Meet Jay Watson -


Operational

Excellence:

Our Destiny !

Introduction to S.Q.S.

Operational Excellence starts with a - Continuous Improvement Mentality


What is aContinuous Improvement Mentality ? A concerted effort of Leadership - to continuously improve work and work processes utilizing industrial engineering application methodologies Lean Enterprise (Toyota Production System)Six Sigma (DMAIC, DFSS methodologies)Business Process Management/ Analysis (Transactional processes)


The Lean Enterprise

- Identify and eliminate Waste (Muda) and wasteful practices Providing value in the eyes of the customer any part of the process for which the customer is willing to pay. Value added activities would be those involved in producing and delivering goods and services.


Six Sigma

Measure defects in a processand (with rigor and discipline)systematically figure out waysto reduce them to zero. Puts practical tools to work to root out defects at all levels achieving tangible results of cost savings, employee, customer and stakeholder satisfaction.


Business Process Management (also called Lean Office)

- Provides Managerial Line of Sight from Customer Requirement (Order) to Delivery

> clear measurements and priorities that connect from top to bottom. (Transactional and Operational KPIs)

Key Performance Indicators Lead Time, Cycle Time, Quotation Response Time, Cost of ECOs, changes to Customer schedules/requirements, COS, COGS, et al


Need for Business Process Analysis

The lack of initial Six Sigma emphasis in the non manufacturing areas was a mistake that cost Motorola at least $5 billion dollars over a four year period. - Bob Galvin, Former CEO

Citation: Lean Six Sigma for Service, Michael George, 2003


Need for Business Process Analysis

The lack of initial Six Sigma emphasis in the non-manufacturing areas was a mistake that cost Motorola at least $5 billion dollars over a four year period. - Bob Galvin, Former CEO

Citation: Lean Six Sigma for Service, Michael George, 2003


Continuous Improvement Mentality

Garner Individual and Team participation through several planned approaches

Suggestions/ Idea BankBenchmarking/ Best PracticesCross -functional Work TeamsApplication WorkshopsProfessional Development

Idea Bank Review Process

The S.Q.S. MethodologyEmploy Improvement Initiatives Operational Excellence - Focus our efforts on concerns of Safety, Quality and Speed (Productivity)

Objective

Describe the purpose of each of the elementsExplore requirements of each elementDefine general time and resource commitments

The S.Q.S. MethodologyEmploy Improvement InitiativesSafety

Pro-active Leadership approach to preventing workplace incidents, accidents and personal injury

A Japanese Leadership insight: Quality begins and ends with Safety

Accountability Meeting SafetySite Map identifying all places of safety incidents

The S.Q.S. MethodologyEmploy Improvement InitiativesSafety One hr. meeting, 1st of each month> Workshop topics may include:HR/ Corp. Issues - Technical, Legal, Moral, EthicalFire, EMTs, First Aid, CPR, Fire Squad/ Fire DrillsCompliance (OSHA, Company Safety Audits)Poka-yoke and specific SQS Operational topics

> Indoctrination, propagation of 6S Continued Implementation/ Follow-up/ Audits/ Visual Management/ Visual Control

The S.Q.S. MethodologyEmploy Improvement Initiatives6S Review Practical approach to sustaining workplace productivity 1S Sort (organize)2S Set in order (everything in its place)3S Shine (cleanliness)4S Standardize (POU, shadow boards, Kanban rules)5S Sustain (spider diagrams from audits)

6S teams operate in factory and office areas [Safety is the 6th S !!]

The S.Q.S. MethodologyEmploy Improvement InitiativesQualityProactive Management approach to Operational Defect Reduction and Product and Process Optimization

Combined with Poka - Yoke (Mistake Proofing)

The S.Q.S. MethodologyEmploy Improvement InitiativesQualityWeekly Team sessions may include:

> Business Process Management Executive Value Stream/ BP (Leadership Team)

> Champion Development and TrainingProfessional Development (Technical/ Supervisory)

> Six Sigma implementation (Belts) with regularly scheduled team Report-outs CIP modules delivered JIT

Accountability Meeting Scrap/ReworkDaily number of pieces and total $$ scrapped or reworked parts/ lots/ batches/ tons

The S.Q.S. MethodologyEmploy Improvement Initiatives

> Business Process Management (Analysis)Executive Value Stream (Leadership Team)Linked Dashboards Goal alignment

> Champion Development and TrainingProfessional Development (Technical/ Supervisory)

> Six Sigma & Lean implementation (Belts) with regularly scheduled team Report-outs Training delivered JIT, Mentoring support

All Have Accountability Meetings !

Accountability MeetingWho all OPEX teamsManufacturing supervisors, production planners, Customer Service reps, buyers, Engineering reps, QA

The S.Q.S. MethodologyEmploy Improvement InitiativesSpeed (productivity) Proactive Leadership approach to Identify and Eliminate Waste through Lean Linking

Accountability Meeting On Time PerformanceMissed Customer orders, late manufacturing work orders, Daily & Monthly On Time Performance Percentages

The S.Q.S. MethodologyEmploy Improvement InitiativesSpeed Weekly sessions may include :

Book reviews with Leadership TeamLean Thinking; Joes Garage; Leaning into Six Sigma

> Lean projects following an abbreviated D/M-A-I-C process with regularly scheduled Team Report-outs (accountability) Topics/ Projects include:Kanban / Visual Control / Visual ManagementPoint-of-Use Tooling, Tools, SuppliesCells, TAKT, Line Balance/Flow IssuesTotal Productive Maintenance, AndonSet-up, change-over reduction, etc

Accountability Meeting Planning/ExecutionIdentify critical work center loads, and execution gaps


With a well-planned implementation,

expected RESULTS may include (within 12 months)

35% to 50% reduction in lost time/ safety-related incidents and accidents15% to 30% decrease in scrap and rework25% to 40% reduction in total cycle time

Accountability Meeting PurchasingTop 5 suppliers with most lateness, track those purchase orders affecting customer orders


Check out the Gain$ achieved by companies that have fully invested in improvement initiatives

G.E. > Added more than $ 2 billion to the bottom line in 1999 aloneAlliedSignal/ Honeywell > Report savings of over $ 1.5 billion since 1993 Motorola > Saved more than $ 15 billion in first 10 years of Six Sigma inception


Good for GE, Honeywell, Motorola .. but, were newbie's ! What can we expect by end of the first year ??

15% savings (hard cost reductions/ cost elimination/ cost avoidance)of Sales for the plant!

Introduction to S.Q.S.Real Improvement:

Lets begin Slow and Sure


Initial Engagements (Site example) Formation of Productivity Improvement Teams Council of Champions OpEx advisors (Steering Committee)-------------------------------------------------------------------6S Team (Office administration/transactional areas)6S Team (Floor, 1st shift)6S Team (Floor, 2nd shift)--------------------------------------------------------------------------------------------------------------------------------------------------------------2 Six Sigma Teams (Floor, 1st shift)1 Six Sigma Team (Floor, 2nd shift)---------------------------------------------------------------------------------------------------------------------------------------------------------------1 Business Process Analysis (Lean Office)2 Lean Application Teams (Floor, 1st shift)1 Lean Application Team (Floor, 2nd shift)

Accountability Meeting Special IssuesOrders that are high $$, high profile, high technical difficulty, or material inventory issues identified and tracked


Initial Engagements: Teamwork is key! Areas addressed -

Leadership Team: Guidance, Planning

6S Teams: Safety, Organization, Flow

Six Sigma Teams: Defects, Scrap, Yield

Lean Enterprise Teams: Cycle Time, Waste


Set Operationaland FinancialGOALS

Financial - $ value savings Lead time reduction Delivery improvement Simplification Standardization Win-Win for suppliers Best-in-class performance Leverage learning Share best practices


Initial Engagements [3 6 months] Scheduled Team Report-outs -

Define (3 weeks) _________Measure(4 weeks) _________Analyze (3 weeks) _________Improve (4 weeks) _________Control(3 weeks) _________

20XX C.I. Plan(Concordance w/ Leadership Team)

Introduction to S.Q.S.Whats different with this approach ?

- Incorporates Lean and Six Sigma (S-L-O-W-L-Y)- Voluntary, simple, easy and fun ! (modular, delivered JIT)- A pro-active approach (managed, scheduled and planned)- Implemented on a part-time basis (a few hours a week)- Directly linked to strategic performance goals- Taps full potential of the organization Utilizes Cross-functional Teams/ SMEs/ Individuals- Framed around PGA (Practical, Graphical, Analytical)

Introduction to S.Q.S.Whats different with this approach ?

It gets results !! ($, involvement, change)


Operational

Excellence:

Our Destiny !

Documents

The S.Q.S. Methodology