+ All Categories
Home > Documents > Lean Six Sigma Webinar - Six Sigma Software | QI Macros ...

Lean Six Sigma Webinar - Six Sigma Software | QI Macros ...

Date post: 04-Feb-2022
Category:
Upload: others
View: 7 times
Download: 0 times
Share this document with a friend
13
© MMIX KnowWare © MMIX KnowWare www.qimacros.com www.qimacros.com 1 Lean Six Sigma Simplified Lean Six Sigma Simplified Recession Proofing Recession Proofing Your Business Your Business Jay Arthur (888) 468 Jay Arthur (888) 468- 1537 1537 Webinar starts at 1pm MST Webinar starts at 1pm MST 2 © MMIX KnowWare © MMIX KnowWare www.qimacros.com www.qimacros.com Staircase to Profits Staircase to Profits Parts Per Million 100,000 10,000 1,000 100 10 1 World Class Six Sigma 3 PPM Two Sigma 300,000 PPM Four Sigma 6,200 PPM Sigma 2 3 4 5 6 Three Sigma 66,800 Five Sigma 300 PPM 1% 10,000 PPM 1 Common Sense Ad Hoc Startup Common Science Complex Science You Are Here 3 © MMIX KnowWare © MMIX KnowWare www.qimacros.com www.qimacros.com Recession Proofing Recession Proofing Your Cash Flow Your Cash Flow $ $ $ $ Expenses People Delay Defects Deviation Sales $ $ $ 25% 60% 33% 67%
Transcript
Page 1: Lean Six Sigma Webinar - Six Sigma Software | QI Macros ...

© MMIX KnowWare© MMIX KnowWare www.qimacros.comwww.qimacros.com 11

Lean Six Sigma SimplifiedLean Six Sigma Simplified

Recession ProofingRecession ProofingYour BusinessYour Business

Jay Arthur (888) 468Jay Arthur (888) 468--15371537

Webinar starts at 1pm MSTWebinar starts at 1pm MST

22© MMIX KnowWare© MMIX KnowWare www.qimacros.comwww.qimacros.com

Staircase to ProfitsStaircase to Profits

Parts Per Million100,000 10,000 1,000 100 10 1

World ClassSix Sigma

3 PPM

Two Sigma300,000 PPM

Four Sigma 6,200 PPM

Sigma

2

3

4

5

6

Three Sigma66,800

Five Sigma300 PPM

1% 10,000 PPM

1

CommonSense

Ad HocStartup

CommonScience

ComplexScience

You Are Here

33© MMIX KnowWare© MMIX KnowWare www.qimacros.comwww.qimacros.com

Recession ProofingRecession ProofingYour Cash FlowYour Cash Flow

$$$

$Expenses

People

DelayDefects

Deviation

Sales

$

$ $25%

60%

33%

67%

Page 2: Lean Six Sigma Webinar - Six Sigma Software | QI Macros ...

44© MMIX KnowWare© MMIX KnowWare www.qimacros.comwww.qimacros.com

Lean Six Sigma SimplifiedLean Six Sigma Simplified

SimplifySimplifyStreamlineStreamline

OptimizeOptimize

LeanLean

Six SigmaSix Sigma

55© MMIX KnowWare© MMIX KnowWare www.qimacros.comwww.qimacros.com

Value Added Value Added vsvs NonNon--Value AddedValue Added

Defects & DeviationDelay

Six SigmaLean

WASTE

66© MMIX KnowWare© MMIX KnowWare www.qimacros.comwww.qimacros.com

Lean and Six Sigma Lean and Six Sigma Work TogetherWork Together

ValueAdded

Defects and DeviationTYPICAL

COMPANY

SIX SIGMA

LEAD TIME

LEAN andSIX SIGMA

NVA

TIME

Delay

Non-Value Added

ValueAdded

Defects and Deviation

DelayNon-Value Added

ValueAdded

Page 3: Lean Six Sigma Webinar - Six Sigma Software | QI Macros ...

77© MMIX KnowWare© MMIX KnowWare www.qimacros.comwww.qimacros.com

Lean Lean -- The Fast Eat the SlowThe Fast Eat the SlowThe Economies of Speed

Rule #1: To accelerate your speed, eliminate delay.

• The 3-57 Rule – Employees only work on the product for 3 minutes out of every hour. The other 57 minutes are delay.

• The 15-2-20 Rule – 15 minute/hr reduction in delay will double productivity and increase profits 20%

• The 3X2 Rule - grow three times faster than average and double your profit margins

Source: Competing Against Time

88© MMIX KnowWare© MMIX KnowWare www.qimacros.comwww.qimacros.com

Simplify Your BusinessSimplify Your Businesswith 5Swith 5S

SortSort Organizing, separating the needed Organizing, separating the needed from the unneededfrom the unneeded

Straighten Straighten A place for everything and A place for everything and everything in its place. everything in its place. Make it visual and selfMake it visual and self--explanatory.explanatory.

ShineShine Cleaning and looking for ways to Cleaning and looking for ways to keep it cleankeep it clean

StandardizeStandardize Maintain and monitor the first 3 S’sMaintain and monitor the first 3 S’sSustainSustain Discipline, stick to the rules / Discipline, stick to the rules /

continuous improvement of all continuous improvement of all principlesprinciples

99© MMIX KnowWare© MMIX KnowWare www.qimacros.comwww.qimacros.com

Lab Before Lab After

5S Team removed two dumpsters of clutter

Clutter

5S Team

Other items were red tagged and moved out of the lab.

Page 4: Lean Six Sigma Webinar - Six Sigma Software | QI Macros ...

1010© MMIX KnowWare© MMIX KnowWare www.qimacros.comwww.qimacros.com

Streamline Your BusinessStreamline Your BusinessThe Speed Bumps of Lean

1. Overproduction (Inventory is EVIL!)

2. Waiting (Delay)

3. Unnecessary Movement

• People

• Inventory

4. Unnecessary or Incorrect Processing

5. Rework

1111© MMIX KnowWare© MMIX KnowWare www.qimacros.comwww.qimacros.com

Redesigning the Work FlowRedesigning the Work Flow

What is the current flow?What is the current flow?Value Stream MappingValue Stream MappingSpaghetti DiagramsSpaghetti Diagrams

What flow would reduce the speed bumps?What flow would reduce the speed bumps?Tools for Lean:Tools for Lean:

1212© MMIX KnowWare© MMIX KnowWare www.qimacros.comwww.qimacros.com

Define the Value StreamDefine the Value Stream

Hint: Most of the Delay is in the arrowsMost of the Defects and Deviation are in the boxes

Hint: Make Your Product Faster, Not Your People.

LogRequest

EvaluateRequest

GetBackup

Valid?

ScheduleDiagnoseTreat

Cancel

Page 5: Lean Six Sigma Webinar - Six Sigma Software | QI Macros ...

1313© MMIX KnowWare© MMIX KnowWare www.qimacros.comwww.qimacros.com

Eliminate the DelaysEliminate the Delays

Hint: Most of the Delay is in the arrowsMost of the Defects and Deviation are in the boxes

Hint: Make Your Product Faster, Not Your People.

LogRequest

EvaluateRequest

GetBackup

Valid?

ScheduleDiagnoseTreat

25 days 120 days

1 day 7 days

Cancel

10 Min 45 Min

60 Min

10 Min

45 MinVaries

1414© MMIX KnowWare© MMIX KnowWare www.qimacros.comwww.qimacros.com

Lean Kitchen DesignLean Kitchen Design

STOVE

REFRIGERATORSINK

Rule #2: Walking is Waste!

1515© MMIX KnowWare© MMIX KnowWare www.qimacros.comwww.qimacros.com

Spaghetti DiagramSpaghetti Diagram

Purpose: To understand the current process.

1. Layout the existing processing stations

2. Become the product

3. Show the flow of the product through the process.

Page 6: Lean Six Sigma Webinar - Six Sigma Software | QI Macros ...

1616© MMIX KnowWare© MMIX KnowWare www.qimacros.comwww.qimacros.com

Tras

h

Lab Redesign

Reagent Refrigerator was here.

Reagent Refrigerator

Lab Before Lab In Process

Spaghetti Diagram of too much travel

Walking

Is

Waste!

1717© MMIX KnowWare© MMIX KnowWare www.qimacros.comwww.qimacros.com

Lean Lab ResultsLean Lab Results

Reduced

• Floor Space 17% (Goal 10%)

• Staff Movement 54% (Goal 30%)

• Phlebotomist Travel 55% (4 miles ~ 1.5 FTE)

• Tech Travel 40% (2,304 feet 0.15 FTE)

• Sample Travel 55% 23,400 feet

7 hours of delay per 24 hours

1818© MMIX KnowWare© MMIX KnowWare www.qimacros.comwww.qimacros.com

Lean SimplifiedLean Simplified

Simplify with 5SSimplify with 5SSort, Straighten, Shine, Standardize, SustainSort, Straighten, Shine, Standardize, Sustain

Streamline with LeanStreamline with LeanValue Stream MappingValue Stream MappingSpaghetti DiagrammingSpaghetti DiagrammingInventory ReductionInventory Reduction

Page 7: Lean Six Sigma Webinar - Six Sigma Software | QI Macros ...

1919© MMIX KnowWare© MMIX KnowWare www.qimacros.comwww.qimacros.com

What is Six Sigma?What is Six Sigma?

2 Sigma2 Sigma 30% defects30% defects 300,000PPM300,000PPM33--4 Sigma4 Sigma 3% defects3% defects 30,000 PPM30,000 PPM5 Sigma5 Sigma .03 defects.03 defects 300 PPM300 PPM6 Sigma6 Sigma .00003 defects.00003 defects 3 PPM3 PPM

2020© MMIX KnowWare© MMIX KnowWare www.qimacros.comwww.qimacros.com

The FixThe Fix--It FactoryIt Factory

Your Factory Your Customers

Your Fix-It Factory

$ $ $ $ $ $ $ $ $ $

2121© MMIX KnowWare© MMIX KnowWare www.qimacros.comwww.qimacros.com

Defects Defects -- The 4The 4--50 Rule50 RuleMyth: The wider you spread it, the greater the returnsMyth: The wider you spread it, the greater the returns

To increase returns, To increase returns, narrow your focusnarrow your focus44--50 rule 50 rule -- (20/80)(20/80)22

4% of business causes over 50% of waste and rework 4% of business causes over 50% of waste and rework

Power Distribution

Rule #3: To increase returns,narrow your focus.

Page 8: Lean Six Sigma Webinar - Six Sigma Software | QI Macros ...

2222© MMIX KnowWare© MMIX KnowWare www.qimacros.comwww.qimacros.com

Focus (Define and Measure)Focus (Define and Measure)Focus your efforts in ways that achieve Focus your efforts in ways that achieve breakthrough improvements in speed, breakthrough improvements in speed, quality and cost.quality and cost.

Line Graph Pareto

2323© MMIX KnowWare© MMIX KnowWare www.qimacros.comwww.qimacros.com

Improve (Analyze and Improve)Improve (Analyze and Improve)Use data to identify and eliminate root causes Use data to identify and eliminate root causes of problems involving time, defects and cost. of problems involving time, defects and cost. 4% of your business causes 50% of the waste, 4% of your business causes 50% of the waste, rework and lost profit.rework and lost profit.

Tools Tools –– Why? Why? Why? Why? Why?Why? Why? Why? Why? Why?

Fishbone

Action

CountermeasuresMatrix

2424© MMIX KnowWare© MMIX KnowWare www.qimacros.comwww.qimacros.com

Focus on PerformanceFocus on Performance

Dec-Jan 2000 Service and Record Affecting Fallout (PPM)

0

50000

100000

150000

200000

250000

300000

350000

1-Dec

3-Dec

6-Dec

8-Dec

10-D

ec

13-D

ec

15-D

ec

17-D

ec

20-D

ec

23-D

ec

27-D

ec

29-D

ec

31-D

ec3-J

an5-J

an7-J

an10

-Jan

12-Ja

n14

-Jan17

-Jan

19-Ja

n21

-Jan24

-Jan26

-Jan

28-Ja

n31

-Jan

Part

s Per

Mill

ion

Ord

ers Good

n=51

3 Sigma

2 Sigma

Start with a line graph or control chart of defects, time or cost:

Page 9: Lean Six Sigma Webinar - Six Sigma Software | QI Macros ...

2525© MMIX KnowWare© MMIX KnowWare www.qimacros.comwww.qimacros.com

Narrow Your FocusNarrow Your FocusUse a series of Pareto charts to narrow your focus:

3881

54558

3465

259

7000

3000

2000

1000

5000

4000

0

8000

6000

Can’t Remove

No Feature

No CustCode

Same Number

Can’t RemoveVoice Mail

# of

Err

ors

100%

30%

10%20%

0%

90%80%70%60%50%40%47%

96%99%

89%Focus on theBig Bars!

Jan Service Affecting Fallout

2626© MMIX KnowWare© MMIX KnowWare www.qimacros.comwww.qimacros.com

Initiate Root Cause TeamsInitiate Root Cause Teams

Identify subject experts to analyze the problemIdentify subject experts to analyze the problemSchedule half or one day root cause analysis Schedule half or one day root cause analysis sessions for each “big bar” of the pareto chart.sessions for each “big bar” of the pareto chart.Analyze the root causes, validate they really are Analyze the root causes, validate they really are the root causes, and identify solutions.the root causes, and identify solutions.Develop action plan to implement the solutionsDevelop action plan to implement the solutionsMeasure and validate the results as you Measure and validate the results as you implement solutionsimplement solutions

Rule #4: Use SWAT teams of experts.

2727© MMIX KnowWare© MMIX KnowWare www.qimacros.comwww.qimacros.com

Identify Root CausesIdentify Root CausesUse the fishbone diagram to perform root cause analysis:

Out Orders

Non Integrated USOCS In Orders

T/F TN ChangeWireless works with Number

Pending Order Check Not Needed on Price

Plan Changes

Price Plan Changes

CSR entered OTNWireless LK# Final

New Orders in Error

Order already issued in another

system

Duplicate Orders

Wireline link #Match Not needed

on out orders

No WWWW Mismatch

Mismatch CustomerService

Affecting fallout = 60% of errors

ProblemStmt

Page 10: Lean Six Sigma Webinar - Six Sigma Software | QI Macros ...

2828© MMIX KnowWare© MMIX KnowWare www.qimacros.comwww.qimacros.com

CountermeasuresCountermeasures(Mistake Proofing)(Mistake Proofing)

Root Cause Countermeasure Specific Actions

Telephone Number Mismatch

Customer CodeMismatch

Add Edit

Add Edit

Edit requirements written and scheduled for April release

Requirements written and scheduled for June release

2929© MMIX KnowWare© MMIX KnowWare www.qimacros.comwww.qimacros.com

Verify ResultsVerify Results

CM1

CM2

Time

Service Order Errors

3030© MMIX KnowWare© MMIX KnowWare www.qimacros.comwww.qimacros.com

Verify ResultsVerify Results

54

558

259

700

300

200

100

500

400

0

800

600

Can’t Remove

No Feature

No CustCode

Same Number

Can’t RemoveVoice Mail

# of

Err

ors

100%

30%

10%20%

0%

90%80%70%60%50%40%

94%

64%

EliminatedTop TwoService

Affecting Errors and

Saved $250,000per month

Service Affecting Errors After Changes

Page 11: Lean Six Sigma Webinar - Six Sigma Software | QI Macros ...

3131© MMIX KnowWare© MMIX KnowWare www.qimacros.comwww.qimacros.com

Reduce DeviationReduce Deviation

BadBadGood

3232© MMIX KnowWare© MMIX KnowWare www.qimacros.comwww.qimacros.com

Reduce DeviationReduce DeviationLSL USLOff Target

LSL USL

LSL USL

Too Much Variation

Centered on Target

Reduce Spread

Center Process

3333© MMIX KnowWare© MMIX KnowWare www.qimacros.comwww.qimacros.com

Sustain (Control)Sustain (Control)Statistical Process Control (SPC)Statistical Process Control (SPC)

ToolsToolsControl ChartsControl Charts ––Analyze your data to determine process Analyze your data to determine process stability. Is your process consistent and stability. Is your process consistent and predictable? Identify and research unstable predictable? Identify and research unstable points and conditions. points and conditions. HistogramsHistograms––Determine the distribution of measurable data Determine the distribution of measurable data and the capability of your process to meet and the capability of your process to meet customer requirements. customer requirements. FlowchartsFlowcharts ––Show the improved process including all Show the improved process including all activities, decisions and measurement points.activities, decisions and measurement points.

XBar Chart Title

UCL=0.819

CL=0.716

LCL=0.6130.61

0.66

0.71

0.76

0.81

0.86

6/8

8am

10am

12pm 2pm

6/9

8am

10am

12pm 2pm

6/10

8am

10am

12pm 2pm

6/11

8am

10am

12pm 2pm

6/12

8am

10am

12pm 2pm

6/15

8am

10am

12pm 2pm

6/16

8am

Date/Time/Period/Number

Num

ber

XAverage

UCL

A

B

Average

B

A

LCL

Histogram

0

5

10

15

20

25

-24 to -18 -18 to -12 -12 to -6 -6 to 0 0 to 6 6 to 12 12 to 18 18 to 24 24 to 30

Values

Num

ber

n = 4 8LSL= -2 4

USL= 2 4Cp( sigm a) = 1 .0Cpk( sigma) = 1 .0Cp( Rd2 ) = 1 .2Cpk( Rd2 ) = 1 .2Pp= 1 .0Ppk= 1 .0Sigm a= 8 .0

Mean = 0

Median = 0

Page 12: Lean Six Sigma Webinar - Six Sigma Software | QI Macros ...

3434© MMIX KnowWare© MMIX KnowWare www.qimacros.comwww.qimacros.com

Implementing Lean Six SigmaImplementing Lean Six Sigma

The Seven Deadly Mistakes:The Seven Deadly Mistakes:Committing to widespread implementationCommitting to widespread implementationFocus on training and teams, not resultsFocus on training and teams, not resultsWide focus, not laser focusWide focus, not laser focusTraining Black Belts to train everyone elseTraining Black Belts to train everyone elseClassroom training, not JIT trainingClassroom training, not JIT trainingImprovement teams, not SWAT teamsImprovement teams, not SWAT teamsLetting teams pick their own problemsLetting teams pick their own problems

3535© MMIX KnowWare© MMIX KnowWare www.qimacros.comwww.qimacros.com

Secret to Lean Six SigmaSecret to Lean Six Sigma

Focus on “mission and profit critical” problemsSet BHAGs -Big Hairy Audacious Goals to reduce defects, delay, deviation or cost by 50% or more in six months or less.Simplify and Streamline: Focus on removing NVA—Non-value addedOptimize—Eliminate Defects and DeviationImplement solutions and verify resultsImplement solutions and verify results

3636© MMIX KnowWare© MMIX KnowWare www.qimacros.comwww.qimacros.com

Power Laws (4-50 rule)

• Start small for big results • Engage informal leaders• Use the 4-50 rule

Crawl-Walk-Run to SuccessImplementing Lean Six SigmaImplementing Lean Six Sigma

Page 13: Lean Six Sigma Webinar - Six Sigma Software | QI Macros ...

3737© MMIX KnowWare© MMIX KnowWare www.qimacros.comwww.qimacros.com

Lean Six Sigma = ProfitsLean Six Sigma = Profits

To accelerate your speed…To accelerate your speed…Eliminate delay and movement (3Eliminate delay and movement (3--57 Rule)57 Rule)

To increase your returns…To increase your returns…Narrow your focus Narrow your focus (4(4--50 rule)50 rule)

To engage your people..To engage your people..Reduce the number of people involvedReduce the number of people involvedEngage informal not formal networkEngage informal not formal network

3838© MMIX KnowWare© MMIX KnowWare www.qimacros.comwww.qimacros.com

Lean Six Sigma ResourcesLean Six Sigma Resources

QI Macros SPC Software for Excel.

Lean Six Sigma Systems

Training and Consulting

Double Your Profits

3939© MMIX KnowWare© MMIX KnowWare www.qimacros.comwww.qimacros.com

Free Resources and Contact InfoFree Resources and Contact Info

30 Day Eval Copy of the QI Macros: qimacros.com/free-resources Six Sigma Quick Reference Card: www.qimacros.com/JobAid.pdf

Lean Quick Reference Card: www.qimacros.com/pdf/leanaid.pdf SPC Quick Reference Card: www.qimacros.com/sustainaid.pdf Jay Arthur KnowWare® International, Inc. 2696 S. Colorado Blvd., Suite 555 Denver, CO 80222 (888) 468--1537 [email protected] www.qimacros.com


Recommended