Introduction to LEAN SIGMABy : Sigit Gunawan

Lean Sigma Training StructureLean Sigma Training Structure

Lean Sigma DefinitionsLean Sigma Definitions

Suatu metodologi sistematis yang membuat proses lebih aman, baik, murah & cepat dengan cara mengeliminir variasi proses serta menghilangkan “non added value” Reduce Steps and Process Variance with a

Customer FocusLean : Focus on simplifying the process Elimination of non added value Reduction of waste (“muda”)Six Sigma : Focus on perfecting the process

LeanThe

Way

Reactive Problem SolvingReactive Problem Solving

Reactive Problem SolvingReactive Problem Solving

• React typically with a Quality initiative : TQM, React typically with a Quality initiative : TQM, Zero Defects Zero Defects

• No observe the problems, defectsNo observe the problems, defects• Fewer customer complaintsFewer customer complaints• Jump to the conclusionJump to the conclusion

FIRE

Lean Sigma EffortsLean Sigma Efforts

PUT IT OUT !!!

CONTROL

DEFINE

MEASUREANALYZE

IMPROVE

FIRE IS OUT

FUTURE FIRES ARE PREVENTED CULTURAL CHANGES

Hard Work vs Smart WorkHard Work vs Smart Work

History of LeanHistory of Lean

Lean Sigma PrinciplesLean Sigma Principles1. Specify value in the eyes of the customer• Tetapkan “value” apa yang diinginkan dari kacamata Pelanggan/User • Misal prosenya harus cepat reduce cycle time.

2. Identify the value stream; eliminate waste and variation• Kenali “value stream” , hapus/kurangi “waste “ dan variasi yang tidak perlu• Rangkaian aktifitas dari awal sampai akhir

3. Make value flow at the pull of the customer• Pastikan prosesnya mengalir sesuai keinginan pelanggan • Tidak terjadi stagnant/stopped/bottleneck

4. Involve, Align & Empower Employees• Libatkan pekerja team work

5. Continuously improve knowledge in pursuit of perfection• Tingkatkan pengetahuan secara berkesinambungan

The Waste CategoriesThe Waste Categories“ It is not removing waste that is difficult, but it is seeing it ”

““The 8 Wastes”The 8 Wastes”

Non Added ValueNon Added Value

The 8 Wastes = Non Added ValueThe 8 Wastes = Non Added Value

The 8 Wastes = Non Added ValueThe 8 Wastes = Non Added Value

The 8 Wastes = Non Added ValueThe 8 Wastes = Non Added Value

The 8 Wastes = Non Added ValueThe 8 Wastes = Non Added Value

• Fixed assignments, no cross-training• Unbalanced workloads• Inadequate training and performance

management system• Not giving authority or encouragement to

improve the work processes and operating procedure

• Not listening to or not following up on employee’s suggestion or warnings

• Attempting to improve the work process without the employee’s input

• Failing to align employees with the company project or goals; “do as you’re told and you’ll be OK

Not Using People Well

The 8 “Wastes” = Non Added ValueThe 8 “Wastes” = Non Added Value

The 8 Wastes = Non Added ValueThe 8 Wastes = Non Added Value

The 8 Wastes = Non Added ValueThe 8 Wastes = Non Added Value

The 8 Wastes = Non Added ValueThe 8 Wastes = Non Added Value

Example : Putting a New Well on Example : Putting a New Well on ProductionProduction

                  

● Dress Up

● Piping Hook Up

● Electrical & Instrumentation

Adding Value Well POPDrilling Rig Leave Location

Rework = Waste

Rework

IInput nput PProcess rocess OOutput Diagramutput Diagram

Laying the Project Foundation – IPO Diagrams

Define

Measure

Analyze

Improve

Control

Stepping Through Stepping Through DMAICDMAIC1. Define• Who are your costumers for the assigned project?• What is the business case?• What are the major steps in the process?• How have you prioritized improvement opportunities?• Who are the stakeholders in the process?• Who are the team members working on these improvements?• What are the goals and timeline for the project?• Is this an opportunity for a Kaizen?

2. Measure• What is the current state of the process? • How is the process measured?• What is the baseline for the key Performance metrics?• What is the Cost of Poor Quality?

3. Analyze• What type of waste are apparent in the process? • What are the sources of problem? Root causes?• What would a benchmark or “world class” process look like?

Stepping Through Stepping Through DMAICDMAIC

1. Improve• How can we remove the cause of the waste?• What is the of improvements to be made? • Is there a risk in implementing them?• What is the performance of the improved process?• Did meet your goal?

2. Control• How will you sustain the improvement?• What is the benefit from the improved process?• Is it documented?• Has the team been rewarded?

Basic Basic IPO IPO Format Format

A combination of Inputs to achieve desired Output

Process Inputs Outputs

ManpowerMachinesMaterialsMethods

MeasurementMother-nature

Performance

Cost

Time

Safer

Bread ManufacturingBread Manufacturing

Bread Manufacture

Process Inputs Outputs

MaterialsBakersOvensMixersRecipes

SOPs

Volume (loaves/day)

Profit ($/day)

Scarp (%/day)

Returns (loaves/day)

IPOIPO examples …. What’s wrong? examples …. What’s wrong?

PublishingEquipment

SOPsWorkers

Raw MaterialsErrors (#/page)

SOPsProduct Line

Costumer RelationshipPricing Policy

ManpowerTraining

DistributionPayment Policy

Incentive System

Sales

Market ShareProfit MarginSales Person

Meet Customer Requirements

Cycle TimeSales Volume# of Defects

Cara membuat diagram Cara membuat diagram SIPOCSIPOC

1. Gambarkan dan diskusikan. Siapa Customer kita? User dari product atau Services yang kita hasilkan?

2. Proses apa yang menjadi fokus untuk kita perbaiki?

3. Value atau input apa yang menjadi keinginan Customer?

4. Input apa saja yang mempengaruhi proses dan terutama output?

5. Siapa Supplier yang memberikan input?

Contoh diagram Contoh diagram SIPOCSIPOC Marketing Bank Marketing Bank

Supplier OutputProcessInput Customer

Nasabah

CEO/Management

Bank Indonesia

Finance

Operation

Marketing

IT

HRD

Budget

Skill

Produk

Riset Pasar

Teknologi

SDM

Service

Maket Share

Compliance

MarketingBank

Jakarta Engineering Timesheet Process

Simplify Process, Reduce Cycle Time, Speed up Billing Process

12/1/2013 3/31/2014

Estimated COPQ: Metric(s) to be Improved:

Lean Sigma Project Contract

Name of Project:

Business Driver(s):

Estimated Start Date: Estimated Completion Date:

SMO Eligible Personnel

Vision of Success:

Short term vision is to reduce penalty deduction due to late submission of invoices by improving timesheet process. Long term vision is to achieve zero penalty.

Average $250.000 per Month Cycle Timesheet Approval (↓); Existing Current Flow Process

Problem / Opportunity Statement:Since April 2013 CPI have issued about 65 SIF/ITC to RekindWorleyParsons (RW) to provide Engineering Services such as : Detail Engineering Design, Front End Engineering Design, Process System Improvement, HAZOP Study, Proposal for Engineering Services, Develop as built drawings/Drafting Services etc.Total SIF/ITC value is around $ 5.3 M for 19 month period. This engineering service is conducted in RW Jakarta Office. Compensation for the Services performed by the RW is based on approved monthly Timesheet of RW's personnel assgined to the respective SIF/ITC. Timesheet approval is currently processed thru hard copies and then inputted into CCMS based on appproved hard coppies. This process has taken a longtime that resulting RW could not invoce to CPI on time and consequently CPI applied penalty for late invoice submission. For this reason Jakarta Engineering Timesheet Process is chosen for initial Lean Sigma project focus.Project Deliverables:

Reducing cycle timesheet approval will accelerate billing process as well as penalty deduction significantly.

In Project Scope: Not in Project Scope:

Existing Timesheet Process Flow, Jakarta Engineering Eligible Personnel, Document Controller, Project Controller, Timesheet Approver, RW Support Office, CCMS

ECM- Offsite Engineering Flow Process - Time Sheet approval

Timesheet Administrator (Bobby) Tracking Status

Prepared by Ek/JPW, September24th

RW Payroll Duri (EKA)Project Engineer - ECM Employees Document Controll (Lina) ManagerEngineering ECM

Project Control- ECM (IKA) Project Engineers Chevron

ApproveYes

No

Update to CCMS template with detail activity for each persons to each project timesheet for Internal Use

Review & Input Timesheet in to CCMS

All ECM Project Team Prepare hardcopy Timesheets in manuall(fill form).(Every Thursday)

Collect all Hardcopy Timesheets in Inbox to get approval from Engineering Manager

Download Timesheet Regularly in CCMS and Monitor TS Status (Reject, Waiting for Approval, Approved) and Inform PE by Email

Provide Clarification description

of timesheets

TRA, AMEC & BO SendOriginal approved Timesheets to Their Head Office

Review and Request/Provide Clarification TS Rejected to Engineers

Contact PE Chevron to justify rejected hours. Provide Clarification

ApproveHardcopy

Timesheets

Upload GBS Hour of WPI employees. Update separated timesheet for each project into HVR(internal excell for timesheet and cost) for Weekly CPI Report

Reinput Rejected Timesheets to CCMS

Scan PDF of Approved Timesheets and Send it to RW Duri Payroll (Pak Eka) and CC to Bobby & Ika by Email

Give Hardcopy TS to TimesheetAdministrator (Bobby)

Make Copy of Third party Timesheets and Give Original Timesheet Harcopy to Third Party Employees

Put into Inbox at Lina Before 2 PM

Send Native TimesheetsForm to Timekeepers (Bobby) by Email

Review and Approve Timesheets in CCMS

Send Native Excel TS to Pak Eka.<Friday/Monday> by Email

Review&Verify SIF,Bookhours, Activity DescriptionPE Check&Follow up If SIF Still Valid

SIF VALID

Initiate PCR, request CPI PE to Extend SIF

NO

YES

Get all Timesheets Hardcopy from Lina & Native by Email

ECM Jakarta Engineering TimesheetECM Jakarta Engineering Timesheet

Supplier OutputProcessInput Customer

RW Management

HRD

IT

Support

Employee

System

Time Keeper

Reviewer

Approver

Approved Timesheet

Billing

Opportunity Cost

Penalty

Jakarta Engineering Timesheet

ECM ContractorCPI User/DOA

Eligible Personnel ECM Timekeeping Support Engineering Manager

Collect Timesheet

SIF Verified by Proj.Eng

Revise SIF

Approve Initiate RCO

Input Timesheet in CCMS

Approved by Eng Mgr. 

Approve N

N

Start

End

Y

Receive activated SIF

Submit Timesheet (hard copy)

Monitor & Follow-up Timesheet Completion

Complete Monthly Timesheet Closing

12

6

7

34

5

Y

8

N

Y

9

N

Y

10

1112

34

The House of LeanThe House of Lean

R e d u c I n g a n d E l i m i n a t i n g W a s t e

Kaizen Lean

Sigma

Continuous Improvement

through workforce

engagement

Customer Satisfaction

Quality Cost Timeliness

Environment Safety

Just in Time

Jidoka

What is needed

when it's needed

as much as needed

Value Stream

Mapping

Flow

Cells

Pull

Quick Changeover

Seeing the Waste

Problem Solving

Mistake Proofing

Standardization and Stability

Surfacing and solving

problems

Standardized Work Visual Workplace 5S TPM

Reducing and Eliminating Waste