Lean Six SigmaModule 1
▰ Control
▰ Mic/Mute
▰ Screen
▰ Hands-Up
1987
1997
2007
2017
Introduction(s)
▰ Name
▰ Role / Organisation
▰ Previous experience with Lean 6-Sigma
▰ Expectations / Objectives / Motivation
The purpose of this award is to equip the learner with the knowledge, skill and competence to apply lean principles in a range of business environments and to use a range of lean strategies, tools & techniques
Training & Award Pathway
Classroom
• 4-day training workshop
Assignment 1.
• 60%• Project • DMAIC• 6 Weeks
Assignment 2.
• 40%• Academic• Lean Tools• 6 Weeks
Green Belt Certification
Project Methodologies
▰ PMI’s PMBOK ▰ Prince 2▰ Agile & Scrum▰ KanBan / Scrumban▰ Lean / DMAIC▰ DMADV / DFSS▰ XP
▰ 5 Project Stages▰ 10 Knowledge Areas▰ 49 Processes▰ 162 Tools & Techniques
▰ 7 Principles▰ 7 Themes▰ 7 Processes▰ Clear PM Role & Duties
▰ Iterative Delivery Cycle▰ Series of Sprints▰ Functions deployed in
operational chunks
▰ 5 Project Phases▰ Methodology▰ Continuous
Improvement ▰ Apply to existing
processes
Six Sigma
Six Sigma
Lean Six SigmaModule 2
Deming
“If you can’t describe what your process is doing then you don’t know what you're doing”
Customers
“Its about what you do for your customers and not what you do toyour customers”
Reduce Waste
Reduce Variation
Agility AccuracyConcise ConsistentEfficient Effective PDCA DMAIC
+ =
Lean 6 Sigma is a methodology for
systematic improvement
Lean & Six Sigma
Lean Six Sigma - Ireland
Levels / Belts / Roles
▰ Establish strategic focus of the program ▰ Within the context of the organization ▰ Provide Culture and vision
Executives: Provide overall alignment
Translate the company's Vision / Mission Goals
▰ Create organisation wide deployment plan▰ Identify and provide resources▰ Clout and influence to remove barriers
Champions
Green Belts
Lean Six SigmaModule 3
Customer Focus
Externalentity that buys the product or service ( pays the invoice )
Internalsupport functions within your
own organisation
RegulatoryBodies you have toreport to / comply
with
Kano Model
VA
NNVA
NVA
Processes – Include Activities
Value Add5%
NNVA35%
NVA60%
Value Add NNVA NVA
Value versus Activity
Activity Definition Action
Value Add Any resources that changes the nature, shape or characteristic of the product or service being provided
Maximise
Non Value Add All unnecessary resources Eliminate
Necessary Non Value Add Resources which are invested by necessity under current conditions ( eg. Regulation ) but which do not directly improve product or service
Minimise
▰ TIMWOOD▰ TIMWOODS▰ TIMWOOD DOES IT▰ DOWNTIME▰ HOSPITAL
8 WASTES – Acronyms (8 MUDA)
The 8 WASTES - TIMWOODS
The 7 WASTES - DOWNTIME
Lean Six SigmaModule 4
PDCA – Cycle of Improvement
Lean & Six Sigma
Lean & Six Sigma
Lean & Six Sigma
Y = f (Xi) Lean & Six Sigma
To control Output Y
All critical inputs must be identified & Controlled
Only then will we have ”control” of the Variation in and performance of a process
Planned Variety
Unplanned Variety
Distributed Variation
Lean Six SigmaModule 5
20, 30, 50, 70, 80.
The Problem with Averages
1, 2, 3, 4, 5, 6, 7, 8, 9
Standard Deviation
1, 2, 3, 4, 5, 6, 7
-3, -2, -1, 0, +1, +2, +3
Standard Deviation
Standard Deviation
Find the best route to work every day
You record the travel timeover a 2 week period
Route A has an averageOf 20 minsRoute B has an averageOf 19 mins
Which Route do you pick ?
Averages
Find the best route to work every day
Lower SigmaLower Variation
Averages
Averages “HIDE” the variation
Averages
Six Sigma
Empirical Rule
Kurtosis
Process Shifts
Six Sigma
And that number is 99.9997%
Six Sigma Theory
Lean Six SigmaModule 6
Must align to strategy of the business
Must support a business case
Must have a clear sponsor / champion
Timelimited ( 1 to 6months )
Project Selection Process
T
E
C
D
R
Q
Potential Projects
Potential Projects
Potential Projects
• Project Selection
Lean & Six Sigma - DEFINE
Customer Impact
Process Maturity
Performance Status
Data availability currently
Project Criteria
5. Solution Clarity
6. Benefits ?
7. Impact on service quality
8. Project sponsorship
Project Criteria
9. Corporate strategy alignment
10. Timeframe to complete
11.Investment
12. Resource / Team availability
Project Criteria
13.Implementation Risk / Barriers ?
14. Level of control / authority
15. Process improvement or complete redesign ?
Project Criteria
CriteriaNo
Question Weight 1-5
Absolute No = 1
Possibly No = 2
Possibly = 3
Possibly Yes = 4
Absolute Yes = 5
1 Are Customers requesting this 5 ☑
2 Is the Process Mature 3 ☑
3 Can we finish within 12 months 5 ☑
4 Are the expected benefits significant ( > €500K ) 5 ☑
5 Is the solution already known 1 ☑
6 Are the resources available 2
7 Is there Executive support 4
8 Is it aligned to Corporate strategy 5
9 Do we have Data already 2 ☑
10 What Investment is needed 4
Totals
PROJECT SELECTION
PROJECT CHARTER
SIPOC STAKEHOLDER MANAGEMENT
RACI VOC, VOP, CTQ PROCESS FOCUS TEAM & CHANGE MANAGEMENT
DEFINE – Key Elements
Lean Six SigmaModule 7
Project Charter
LEAN & Six Sigma - DEFINE▰ Problem Statement
▰ A GOOD Problem Statement should
▰ State the current undesired situation▰ Quantify the problem
▰ A GOOD Problem Statement should NOT
▰ Assume the cause▰ Assume the solution
LEAN & Six Sigma - DEFINE▰ A BAD Problem Statement ( examples )
▰ “Everyone needs to be retrained on……”▰ More resources are needed to improve leadtime….▰ Machine always broken…..Process always takes too
long.
Jump to conclusions, ambiguous, opinion driven.
LEAN & Six Sigma - DEFINE▰ A GOOD Problem Statement ( example )
During the period 1st Jan 2018 until June 30th 2018, >15% of customer queries were not resolved first time leading to 250hours of overtime to handle the escalations costing €12,500
• Provides the facts
• Provides timescales and impact to the business
• Clear and concise – non objectionable
LEAN & Six Sigma - DEFINE▰ A GOOD Problem Statement - structure
(Item) is a problem because it affects (Case / impact)and we have established the (evidence).
▰ Item: is a condition, procedure, hardware, equipment or process
▰ Case / impact: is quality, cost, service and or frequency
▰ Evidence: is a symptom(s) or data collected
Workload Facing Team 55,000 Applications Plus 15% Rework Burden
Capacity of Team
25people x 5days x 10applications x 46 weeks
The new business processing dept in PINK Dublin is handling 10% more applications ( 63,250 ) than it is designed to handle ( 57,500 ) due to a high percentage ( 15% ) of bad applications placing a strain on employees and on broker community loyalty.
Problem Statement
36mins per application reduced to < 30mins = 6mins saving.
16.6% time reduction ( 36-30) / 36
16.6% of €875K = €145,833 savings in reduced staff salaries
Cost of 1 Team = €175,000 / YEAR.
Business Case
Lean Six SigmaModule 8
Stakeholder Identification
Stakeholder Analysis
Joe Bloggs
Inf 8
Pwr 8
Joe Bloggs
Inf 8
Pwr 8
JB
Stakeholder Analysis
Team Management / Change Leadership
Team Meetings
Voice of the Customer (VOC)
Voice of Business ( VOB )
Voice of Process ( VOP )
LEAN & Six Sigma - DEFINE
Lean Six SigmaModule 9
What is Process Management?
Process Focus
Process Focus / Map the Process Flow
Value Stream Mapping (VSM)
LEAN & Six Sigma - DEFINE
LEAN & Six Sigma - DEFINE
Considers total Lead time of a process as a combination of
Process time ( useful ) & Waiting Time ( waste )
LT = PT + WT
A:R = PT / LT
Activity Ratio
Considers the Leadtime of a process as being a combination of Value Add (VA) + Non-Value-Add (NVA) +
Necessary-Non-Value-Add (NNVA).
PCE examines the relationship between VA and LT.
LT = VA+NVA+NNVA
PCE = VA/LT
Process Cycle Efficiency(PCE)
Takt Time
Your Digital Channel Marketing company is supporting 10 Clients accounts. Each client expects expects 4 updates
per day on FB and Insta. You work alone.
8hrs * 60mins = 480mins
10 x 4 x 2= 80 Updates
TAKT time = 6 minutes per update
TAKT Time – Example(s)
Lean Six SigmaModule 10
Kanban
Kanban Board
Batch Quantity
5 Factors That Influence Card Formulas
▰ Customer takt
▰ Regular time of replenishment system
▰ Changes in replenishment system
▰ Customer changes
▰ Buffer/safety margin
Number of Kanban = DT(1+x)/C
D: Demand per unit of timeT: Lead timeC: Container capacityX: Buffer, or safety factor
Number of Kanban = DT(1+x)/C
Lean Six SigmaModule 11
KAIZEN Event
KAIZEN Event
KAIZEN Examples
KAIZEN Examples
KAIZEN Event
▰ Clear Objectives
▰ Quick & Simple
▰ Time bound ( 1 week or 2 weeks )
▰ Quick Results / Quick wins
KAIZEN Event – “Snappy”
▰ Preparation for the Workshop
▰ The Workshop
▰ Post KAIZEN Follow Up
KAIZEN Event – 3 Stages of Implementation
▰ Define the Kaizen Goal
▰ Select the “right” team members
▰ Collect all related data / photos / documents
▰ Plan the date, agenda, resource allocation
KAIZEN Event – Stage 1 Pre-Event Planning
▰ Develop & Validate the current state
▰ Identify Improvements
▰ Develop Future State
▰ Action plan creation
▰ Develop 5 / 15 / 30 day deliverables
KAIZEN Event – Stage 2 Kaizen Workshop
▰ Review action plan weekly
▰ Review process metrics – improvement trend
▰ Discuss & document learning outcomes
▰ Identify further opportunities for improvement.
KAIZEN Event – Stage 3 Post Kaizen follow up
Lean Six SigmaModule 12
Measurement System Analysis
▰ Measurements must provide Value▰ Measurements must provide information▰ Measurements must provide knowledge
▰ Not enough to measure the “right things” but to measure the “right things right”
▰ To do so they must be accurate, reliable & precise ▰ A true reflection of the actual status
Measurement System Analysis
▰ ACCURACY / BIAS
▰ RESOLUTION / DISCRIMINATION
▰ LINEARITY
▰ STABILITY
▰ REPEATABILITY & REPRODUCIBILITY (Gage R&R)
Measurement System Analysis
Repeatability & Reproducability
Measurement System Analysis - Guage R&R
Measurement System Analysis - Guage R&R
Weather 19
Security Alert 25
Industrial Action 2
Radar Malfunction 1
Suspicious Luggage 15
Pilot shortage 25
Plane grounded 70
Lost Luggage 100
Missed connection 300
Ticket error 57
Lean Six SigmaModule 13
1) Analytical
2) Quiet Brainstorming
3) Role Play Brainstorming
4) Supported Brainstormng
5) Radically Creative Brainstorming
Brainstorming Strategies
▰ Mindmapping
▰ Reverse Brainstorming
▰ Gap Filling
▰ Drivers Analysis
▰ SWOT Analysis
▰ 5 Whys
▰ Starbursting
Analytical
▰ Brain Netting
▰ Brainwriting
▰ Collaborative Brainwriting
Quiet Brainstorming
▰ Role Storming
▰ Reverse Thinking
▰ Figure storming
Role Play Brainstorming
▰ Stepladder Brainstorming
▰ Round Robin Brainstorming
▰ Rapid Ideation
▰ Trigger Storming
Supported Brainstorming
▰ Charrette
▰ “What If”
Radically Creative Brainstorming
Ishikawa Diagram
Lean Six SigmaModule 14
IMPROVE
What are the 5 S’s?
SMED (Single Minute Exchange of
Dies)
25 Min TAT in Ryanair90 Min TAT in most airlines
SMED (Single Minute Exchange of
Dies)
Lean Six SigmaModule 15
Total Productive Maintenance (TPM)
Total Productive Maintenance (TPM)
Total Productive Maintenance (TPM)
Overall Equipment Effectiveness (OEE)
Overall Equipment Effectiveness (OEE)
Overall Equipment Effectiveness (OEE)
Availability takes into account all events that stop planned production long enough where it makes sense to track a reason for being down (typically several minutes).
Availability = Run Time / Planned Production Time
Overall Equipment Effectiveness (OEE)
Performance takes into account anything that causes the manufacturing process to run at less than the maximum possible speed when it is running (including both Slow Cycles and Small Stops).
Performance is the ratio of Net Run time : Run Time
Performance = Ideal cycle time * Total Count / Run Time
Overall Equipment Effectiveness (OEE)
Quality takes into account manufactured parts that do not meet quality standards, including parts that need rework.
OEE Quality is similar to RTY, in that it defines Good Parts as parts that successfully pass through the manufacturing process the first time without needing any rework.
Quality = Good Count / Total Count
Overall Equipment Effectiveness (OEE)
Calculating OEE
Lean Six SigmaModule 16
▰ First flight of an aircraft
▰ First drug release
▰ First robotic surgery
▰ First autonomous car
▰ First airbag deployment
PILOT: Why Pilot the improvement(s)
Run Charts V Control Charts
An X-Bar and R-Chart is a type of statistical process control chart for use with data collected in subgroups at set time intervals - usually between 3 to 10 pieces per subgroup.
The Mean (X-Bar) of each subgroup is charted on the top graph and the Range (R) of the subgroup is charted on the bottom graph.
Control
▰ R-Chart Average Range Quantitative
▰ X- Chart Average Mean Quantitative
X-bar charts are used to monitor the mean of a process based on samples taken from the process at given times (hours, shifts, days, weeks, months, etc.).
Control Charts
Indicates how the average or Mean changes over time
Monitors Process Mean when calculating subgroups at frequent intervals
Each Graph point is a subgroup mean value
The Process Mean is the centre line
Control X Bar Chart
Indicates how a range of subgoups changes over time
Monitor Process Variability
Each plot point is the subgroup range value
Control X Bar Chart
Run Charts V Control Charts – I BAR Chart
“Individual = I “
Control Charts
Common Cause Variation, (Natural Problems), Random but predictable. Reflects activity within the system.
Special Cause Variation, Unexpected glitches, unusual, non expected variations. Outside Control Limits.
Control X Bar Chart
Apply “Intelligent Limits” – Now the chart is informative
Run Charts V Control Charts
Control X Bar Chart Example
Out-of-control signalsA single point outside the control limits.
Two out of three successive points are on the same side of the centerline and farther than 2 σ from it.
Four out of five successive points are on the same side of the centerline and farther than 1 σ from it.
A run of eight in a row are on the same side of the centerline.
Control X Bar Chart
Control
Run Charts
Control
Lean Six SigmaModule 17
Poke Yoka – Error Proofing
Poke Yoka – Error Proofing
Poke Yoka – Error Proofing
Poke Yoka – Error Proofing
Poka Yoke - Error Proofing.
Poke Yoka – Error Proofing
Visual Management
The objectives of Visual Management are:
▰ Clarify waste.
▰ Display problems in a simpler way.
▰ Clearly indicate your efficiency goals.
▰ Increase effective communication.
Visual Management
▰ Stock controls, auditing boards, and shadow boards.
▰ Visual management can improve communication and help improve efficiency.
▰ Other times, visual aids can become confusing and too
much to remember.
Visual Management Example
Visual Management
Visual Management
Visual Management
Visual Management
Visual Management
Andon
Force Field Analysis
Lean Six SigmaModule 18
Process Output = Sum of all “controlled inputs”
Y = f (Xi) Quality isn’t “inspected in” or “retrofitted” it is “built in”
Control – Process Output
Fail Safe
Visual Control Tools
Visual Aids
Procedures , Instructions and Manuals
Make it the only way
Warning Systems
Illustrating
Control – Daily Huddles
▰ Keeping close to the action▰ Finger on the pulse of the company▰ Maintaining the culture and atmosphere▰ Most efficient communication
Control – Process Output
Control – Maintain the Culture
▰ Means winning “one heart and soul at a time”▰ Each individual comes to a full commitment at their
own individual pace▰ Be patient – some who embrace it slowly become
the strongest advocates▰ You know you are there when all employees engage
in identifying and eliminating waste every day
Control – Maintain the Culture
VIDEO: https://www.youtube.com/watch?v=jYby_HczyDA
Control – Maintain the Culture
▰ A kata typically refers to fundamental movements in Japanese martial arts but can refer to any basic form, routine, or pattern of behaviour
▰ Improvement kata and coaching kata▰ Continuous improvement through the scientific
problem-solving method of plan, do, check, act (PDCA) a daily habit
▰ Coaching katais the repeating routine by which lean leaders and managers teach the improvement kata to everyone in the organization.
Control – Culture & Habit KATA
Control – Reward & Recognition
▰ PEERS
▰ Downstream
▰ Upstream
▰ Interested Parties
▰ From basic Suggestion boxes -> Major project deployments
Control – Reward & Recognition
Lean Six SigmaModule 19
A process audit is an examination of results to determine whether the activities, resources and behaviours that cause them are being managed efficiently and effectively.
A process audit is not simply following a trail through a department from input to output - this is a transaction audit
Control - Audit
Control - Audit
Quality Plan
▰ An incident response plan is a general plan to deal with a number of potential crisis that can undermine your business , service or product.
▰ Virus / Climate / Economic / Political / Staff / IP Loss / Upstream quality event. / Downstream event.
Response Plan: Expecting the unexpected
Prevention Strategies
Response Strategies
Recovery Strategies
An incident response plan should include:
▰ Plan activation details, including a clear statement of the circumstances when the plan will be activated and who is authorised to do so
▰ Incident response team details, including key roles and responsibilities
▰ An emergency kit ▰ Evacuation procedures for your premises▰ A communication plan, including key communication
methods
Response Plan: Expecting the unexpected