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Riding Six Sigma to Implement
Lean
Juan AmadorLean Sigma MBB
Copyright Medtronic 2004
History and BackgroundMedtronic Mission
Copyright Medtronic 2004
History and BackgroundThe need for Lean Sigma SolutionsTM
Corporate MissionCorporate Mission• To contribute to human welfare by
application of biomedical engineering in the research, design, manufacture, and sale of
instruments or appliances that alleviate pain, restore health, and extend life.
• To direct our growth in the areas of biomedical engineering where we display maximum strength and ability; to gather people and facilities that tend to augment these areas; to continuously build on these
areas through education and knowledge assimilation; to avoid participation in areas where we cannot make unique and worthy contributions.
• To strive without reserve for the greatest possible reliability and quality in our products; to be the unsurpassed standard of comparison and to be recognized as a company of dedication, honesty, integrity, and service.
• To make a fair profit on current operations to meet our obligations, sustain our growth, and reach our goals.
• To recognize the personal worth of employees by providing an employment framework that allows personal satisfaction in work accomplished, security, advancement opportunity, and means to share in the company's success.
• To maintain good citizenship as a company.
Speed and Quality, Design For Six Sigma
Learning culture
Process excellence
Internal cost, turns, etc.
Life tools and development
Process compliance excellence
Copyright Medtronic 2004
History and BackgroundHistory
Founded in 1949 as a medical equipment
service company
Copyright Medtronic 2004
History and BackgroundHistory
• First external wearable pacemaker
• Expanded into implantable technology, other devices
Copyright Medtronic 2004
Medtronic TodayBreadth of Our Business
Copyright Medtronic 2004
Medtronic TodaySteady Growth
Copyright Medtronic 2004
Medtronic TodayCommitted to Innovation - Research and Development
Two-thirds of our revenues are from products introduced in the last two years
Copyright Medtronic 2004
Medtronic TodayCommitted to Innovation
Copyright Medtronic 2004
Medtronic TodayLeveraging Technology
Leveraging experience in electricalstimulation for …
• Heart conditions
• Parkinson’s disease
• Pain
• Digestive disorders
• Bladder control problems
Copyright Medtronic 2004
• 30,000 Employees• 120 Countries
Medtronic TodayGlobal Reach
Copyright Medtronic 2004
Medtronic TodayEvery 6 Seconds...
6seconds
Copyright Medtronic 2004
Process Science
Pursue variation and waste
Completes a Belt’s toolbox
Both implemented via DMAIC
Ride the culture change – examples
Copyright Medtronic 2004
Both implemented via DMAIC
Copyright Medtronic 2004
A 3σ process because 3 standard deviations fit
between target and spec
Target CustomerSpecification
1σ
2σ
3σ
Before
Target CustomerSpecification
After
2σ
6σ
6σNo Defects!1σ
3σ4σ5σ
3σ
DMAICDMAICIs the Is the
methodologymethodology
Six SigmaSix Sigma makes a science makes a science
of process of process capabilitycapability
Both implemented via DMAIC
Copyright Medtronic 2004
DMAIC DMAIC is the is the
methodologymethodology
LeanLean makes a makes a
science of science of process flowprocess flow
Both implemented via DMAIC
Copyright Medtronic 2004
Lean Thinking steps:
SPECIFY VALUE – define process in terms of customer value
MAP THE VALUE STREAM – with customer focused measurements
MAKE THE VALUE FLOW – analyze for waste elimination
PULL – improve flow via customer pull
SEEK PERFECTION – continuous improvements and controls
Both implemented via DMAIC
Copyright Medtronic 2004
Completes a Belt’s toolbox
Copyright Medtronic 2004
Completes a Belt’s toolbox
Copyright Medtronic 2004
MJ
MH
LW
Submis s ion Que s t io n 1
Que s t io n 1 Ans we r 1
Ans we r 1Que s t ion 2 Que s t ion 3
Ans we r 2Ans we r 3
Que s t ion 2 Que s t ion 3
Ans we r 2Ans we r 3
Que s t io n 4Ans we r 4Ans we r 5
Que s t io n 4Ans we r 4Ans we r 5
Que s t ion 6 Ans we r 6
Ans we r 6Que s t ion 6
Que s t ion 5
Que s t ion 7Que s t ion 8Que s t ion 9
Que s t ion 7Que s t ion 8Que s t ion 9
Ans we r 7Ans we r 8Ans we r 9
Ans we r 7Ans we r 8Ans we r 9
17 403 Cyc le
Ans we r 11
Que s t ion 10
Que s t ion 11
Que s t ion 11
117 41 60 28 75
56
211
84 67 6 172 521
Ans we r 12
68Ans we r 10
Ans we r 12
Que s t ion 12
26 84Approva l
Ans we r 11
Que s t ion 12
Source DF Seq SS A dj SS A dj MS F P
SBU 3 9233.5 1861. 5 620.5 2. 37 0. 131
C ategory 2 2402. 4 2269.0 1134.5 4. 34 0. 044
C lass 2 38.1 252. 6 126.3 0. 48 0. 631
Type 5 5484.4 5484.4 1096. 9 4. 20 0. 026
E rror 10 2613.5 2613. 5 261.4
Total 22 19771. 8
S = 16.1664 R- Sq = 86. 78% R- Sq(adj) = 70.92%
Pursue variation and waste
Using statistics to find biggest source of time variation
Copyright Medtronic 2004
Pursue variation and waste
Copyright Medtronic 2004
Lean = Lean = Balanced Balanced
FlowsFlows
66σσ == ReducedReduced VariationVariation
Process Process Step 1 Step 1
Process Process Step 2 Step 2
Process Process Step 3 Step 3
Process Process Step 4 Step 4
VariationVariationBeforeBefore
VariationVariationAfterAfter
Pursue variation and waste
Copyright Medtronic 2004
Pursue variation and waste
Before
After
Printing, packing operation
Copyright Medtronic 2004
Process Science
Copyright Medtronic 2004
In Six Sigma:
Y = f(x1, x2…?)
the challenge is to find the trivial many X’s, then identify the vital few X’s
Process Science
In Lean:
Y = f(x1, x2…x18)
the challenge is to identify the vital few X’s
Copyright Medtronic 2004
Analog adjustment, reprogram timer
Kanban, 5S, (Inbox signals, simplify/sort
the work station)
Methods to improve and control
Voltage, timeLabor time, move time (review the account, walk to the mail drop)
Xs
Weld StrengthLead Time (time to process expense
accounts)Y
Six SigmaLeanExamples of Ys, Xs
and Methods in both Lean and Six Sigma
Process Science
Copyright Medtronic 2004
Lead Time
Environment Methods
Material
Machines
Personnel
NV A Inclusion
Labor/work Time
Mov e Time
Internal Setup Time
External Setup Time
Static/Dy namic machine
Machine/work Time
C apacity
% Downtime
Transfer Lot S ize
Process Lot S ize
Effectiv e hrs.
Boost %
Day s
Shifts
Demand/product mix
O ptions %
Rework/scrap %
The 18 Xs of Lean
Lead Time
Environment Methods
Material
Machines
Personnel
NV A Inclusion
Labor/work Time
Mov e Time
Internal Setup Time
External Setup Time
Static/Dy namic machine
Machine/work Time
C apacity
% Downtime
Transfer Lot S ize
Process Lot S ize
Effectiv e hrs.
Boost %
Day s
Shifts
Demand/product mix
O ptions %
Rework/scrap %
The 18 Xs of Lean
Process Science
Copyright Medtronic 2004
TRANSFER LOT SIZE
PROCESS LOT SIZE
OPTIONS
REWORK
DOWNTIME
EXTERNAL SET UP
INTERNAL SET UP
ATTENDED MACHINE
UNATTENDED MACHINE
MOVE
LABOR
TOTALS
Lead Time formulas are calculated with large
spreadsheets
Many Xs
Y
Process Science
Copyright Medtronic 2004
Process Science
Copyright Medtronic 2004
Current
0.01.02.03.04.0
Cri
mp
Dis
tal t
o
Ba
ckfil
l
Inst
all
Inst
all & Fill
Bac
kfill
Sta
ke I
S-1
Trif
ur.
Bac
kfill
Lase
r
Lase
r
Ba
ckfil
l
Pre
p D
f-1
Crim
p D
f-1
Insi
tu D
f-1
Inst
all
&
Fin
al Fill
Ste
rile
Process Science
Balanced to Target
0%
50%
100%
150%
200%
Op10
Op40
Op70
Op100
Op130
Op160
Op190
Op220
Op250
Op280
Op310
Op340
Op370
% used capacity % available capacity % of capacity
Before
After
Copyright Medtronic 2004
Process ScienceDistribution center label print and ship
Copyright Medtronic 2004
Ride the culture change – examples
Copyright Medtronic 2004
InOut
Unpacking (Outer carton)
LibraryMJ
Storage Obsolete Demo. Hold
Domesticprocured
MJStorage
VJOperationStorage
NTStorage
Packing material
MJ Storage
MJ StoragePacking
Packing material
VJHart Valve operation
INC
Office
OfficeRepair
Experiment
CheckReceiving Material & labelstorage
Telemetry check
Hard product
Labeling AssemblyAppearance check
QA check
Receiving registration
Decision for release
MJ NT・VJ
Shipping
Import product receiveReturn product receive
Return operationDecision for release Rework
1F
2F
3F
4F
6F
MJStorage
Packing material
MJ Stock MJ Stock
MJ Stock MJ Stock
VJHart Valve operation
INC
Customer Service
OfficeRepair
Experiment
Receiving Unpacking FG
MJ
Shipping
Import product receiveReturn product receive
Return operationDecision for release Rework
1F
2F
3F
4F
6F
Pick Label Pack and ShipStaging
MJStorage
Office Space for Kawasaki
MJStorage
Packing material
MJ Stock MJ Stock
MJ Stock MJ Stock
VJHart Valve operation
INC
Customer Service
OfficeRepair
Experiment
Receiving Unpacking FG
MJ
Shipping
Import product receiveReturn product receive
Return operationDecision for release Rework
1F
2F
3F
4F
6F
Pick Label Pack and ShipStaging
MJStorage
Office Space for Kawasaki
Before After (4Q ‘ 04)
Cycle time and regulatory improvements
Inventory, 20 FTEs, 2 Floors, 11 days
Example: Japan distribution center
Copyright Medtronic 2004
75% Inventory reduction
Example: Discrepancy report processing
Inve
ntor
y
Copyright Medtronic 2004
Sample binning system – client FIFO drop off bins
Heijunka flow control
From 40% on time to 96%
Example: Chem. lab scheduling
Copyright Medtronic 2004
From 1 hr 11 mins to < 5 mins
Before After
Example: Lot card issuance
Copyright Medtronic 2004
Example: Auto Allowance
Process time cut in half
Copyright Medtronic 2004
• Lean and Six Sigma go together – both make a Lean and Six Sigma go together – both make a science out of the processscience out of the process
• Ride the global Six Sigma passion, employees Ride the global Six Sigma passion, employees and infrastructure to implement Lean and infrastructure to implement Lean
• Enhances belt career developmentEnhances belt career development
Ride the culture change – Summary
Medtronic does not do Medtronic does not do “lean or six sigma,” “lean or six sigma,”
we do Lean Sigma Solutions we do Lean Sigma SolutionsTMTM everywhere. everywhere.
Copyright Medtronic 2004
Cu
ltu
re
Time
Ben
efit
s
Lean Sigma StrategyLean Sigma Strategy
Vision: Unlocking the potential in Medtronic’s people and processes
Curiosity
Project Wow
Leadership Standard
Next Level Enablers: Deploymeter Tool Values based award Add to champ guide Top belts into top jobs MDT Wide Value Usage Values in Belt training Custom Comp questions FY06 Emerging Leaders Projects Big Y focus roles Org Plans/data mining/BU
Strategic effort to date
Lean Sigma and Leadership
Copyright Medtronic 2004
Thank You