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Presentation to ASQ Chapter Meeting 15 April 2009

Demystifying Lean Six Sigma: Why the emphasis on Continuous Process Improvement? Vance A. Kinsey, CPT LSS Master Black Belt. Presentation to ASQ Chapter Meeting 15 April 2009. My Journey. Scientific & Engineering Interest/Aptitude Trainer….but training was not the answer

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Presentation to ASQ Chapter Meeting 15 April 2009

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  1. Demystifying Lean Six Sigma:Why the emphasis onContinuous Process Improvement?Vance A. Kinsey, CPTLSS Master Black Belt Presentation to ASQ Chapter Meeting 15 April 2009

  2. My Journey • Scientific & Engineering Interest/Aptitude • Trainer….but training was not the answer • Supervisor/Manager….discovered the “system” (Good people, bad system—who wins?) • Education….Adult Learning ….but education was not the answer • Consulting….helping others achieve their goals • Human Performance Technology….CPT (people) • Lean Six Sigma….MBB (process) • Leadership….Strategic Transformation; helping organizations discover/achieve their goals

  3. Agenda Why address process improvement History of Process Improvement--beginnings of the three basic principlesUnderlying principles of Lean, Six Sigma and Theory of Constraints including tools and techniquesRoles and Responsibilities/Certifications and Standards of LSS/CPI practitioners Deployment Strategies to integrate the practices successfully into an organization

  4. WIIFM? As a Quality Professional, why am I concerned about Lean Six Sigma and/or Continuous Process Improvement? Is it a threat or an opportunity? And what is it anyway?

  5. Managing Expectations—Project Nightmare How the customer explained it How the project leader understood it How the programmer wrote it How the consultant described it How the analyst designed it What was installed by operations How the customer was billed How the project was supported What the customer really needed How the project was documented

  6. The First Step is the Hardest

  7. We don’t manufacture anything! We’ve already done this! How many of you have heard…? I don’t like it! Isn’t this another “flavor of the month”? We’re too busy!!! We don’t have the money!!!!! NEWS FLASH: ALL OF THESE THOUGHTS ARE NORMAL! We’re different! Our leaders won’t support it! How can I impact a command-level process? We don’t have processes! It’ll never work here! We’re not broke; we don’t need fixing!!!! I don’t want it here! Our processes only happen “on demand” I don’t want it!

  8. PERFORMANCE IMPROVEMENT REFERENCE LIBRARY CPI/LSS has “borrowed” best practices from all of these initiatives

  9. CPI/LSS is… Rigorous adherence to proven methodologies, tools and techniques that will enable a leader to confidently solve process problems using data-driven approaches so that the problems stay solved.

  10. CPI/LSS is NOT… • Another management program. • A justification for buying new equipment, spending more money, or hiring/firing people. It IS a scalable collaborative process to capture, prioritize and address all concerns of customers, suppliers and stakeholders. It IS a philosophy to address and correct problems. It IS a low-cost approach to identify and implement appropriate changes to meet specific goals. It DOES require supervisors, managers and leaders to make good decisions. • A substitute for good leadership. • A “one-size fits all” solution.

  11. Why now? We’re still the best, most advanced and most productive economy in the world, so… • Why is process change important now? • What is the “burning platform”? • Who is championing the need for change and why?

  12. Why Lean Six Sigma as our CPI model? • Common language • Common practice • Shareable resources, personnel • Used by business & industry, government & military, and academia (including their consultants) • Benefits can be compared and collected • Rigorous, standardized training and certification process

  13. Appropriate methodology for all types of processes Examples of areas that can be significantly improved: • Transactional/administrative process (takes too long) • Personnel overworked; multiple unnecessary steps (wasteful) • Document review process (inconsistent) • Unhappy customers & workers • Cuts, shortfalls, and downsizing • Ineffective management controls; inspections, oversight, surveillances, audits, reviews • Changing customer demand

  14. There may still be pockets of resistance or suspicion

  15. -6 -3 0 +3 +6 Integration of three disciplines Focus of TOC Value Stream Speed of Lean Customer Value Accuracy of Six Sigma

  16. History of Lean, Six Sigma, & TOC • Roots of Lean: back to early 1900’s • Henry Ford: continuous flow production, waste elimination • TWI: (Training Within Industry), 1940-1945 • Kiichiro Toyoda and Taiichi Ohno: low inventories, flexibility & responsiveness • U.S. supermarkets: pull systems • Shigeo Shingo: mistake proofing, reduced set up times (SMED) • Toyota Production System • MIT and James Womack: brought Lean back to U.S. • Eli Goldratt: published book “The Goal”, early 1980’s (TOC) • Motorola & others: developed Six Sigma early 1990’s NIKE

  17. DMAIC - The Process for Process Improvement P D SHEWHART CYCLE A C IDENTIFY PROBLEMS DEFINE DESCRIBE CONDITION MEASURE LIST POTENTIAL CAUSES ANALYZE PROPOSE SOLUTIONS IMPROVE PREPARE ACTION PLANS, IMPLEMENT IMPROVEMENTS CONTROL VERIFY RESULTS Document, Communicate and Identify Replication Opportunities Long Term Implementation COMPARE/CONTRAST TO HPSM

  18. Ergonomics Solution Engineering Solution Training Solution Manpower Solution • Quantity • Ratings • Seniority • EPSS • PC Sim • Job Aide • eLearning ??? IT Solution Material Solution ??? • Personnel • Human Factors • Safety • Manpower • Training • Medical • Habitability • Survivability Knowledge Management Solution Work Environment Solution ??? Reward & Incentive Solution ??? Standards & Expectations Solution Process Solution Doctrine & Testing ??? Policy Solution Psychometrics Solution Same Scope of Impact…Different Starting Point

  19. Where to use CPI/LSS for Problem Solving This is where CPI/LSS Works best. LEADERSHIP & ACCOUNTABILITY PROCESS PERSONNEL PLANT

  20. Lean Principles • Specify “Value” from the Customer’s Perspective • Map & Analyze the “Value Streams” • Make the Value Streams “Flow” • Enable the Customer to “Pull” Value from the Value Streams • Seek “Perfection”

  21. Lean is eliminating waste T I M W O O D U Under-utilization Of Employees Transportation Overproduction Non-Value Add Hauling EightWastes Motion Waiting Defects Over-processing Inventory

  22. = Non-Value-Added Time (WASTE) = Value-Added Time The Value of Time Within the 8 wastes, time is a significant factor. Disassemble Transport Wait Re-Install Machine Machine Remove From Ship Set-up Inspect Transport BEFORE ANALYSIS Start Finish Broken Component Repaired Component TIME Value-added time is only a very small %of the total time. AFTER IMPROVEMENTS

  23. Lean Focus Make all of the Value Stream visible Reduce or eliminate Non-Value-Added portions of the process Result: Large time savings Traditional Focus Improve Value-Added work steps Better tools, machines, instructions Result: Small time savings Time Amount of Time Eliminated The Value of Time Small LARGE amount of time saved Note: The focus is not on the value-added steps or the people performing them. Instead, the focus is to remove barriers and better support the people doing the work!

  24. Shift Happens Six Sigma is eliminating variation “In God we trust, everyone else bring data.” Based on Statistical Thinking • All work is a series of process • All processes have variation • Businesses improve when they reduce or eliminate variation Process B Process A

  25. What’s the big deal? Hey, 99% is good enough right? • 20,000 lost postal mail items per hour • 15 minutes of unsafe drinking water per day • 2 long/short landings per day at a major airport • 5,000 incorrect surgical operations per week • 7 hours of lost electricity per month • 20,000 incorrect prescriptions per month 99% 99.99966% (6 Sigma) • 7 lost postal mail items per hour • 1 unsafe minute every seven months • 1 long/short landing every five years • 1.7 incorrect operations per week • 1 hour without electricity every 34 years • 68 wrong prescriptions per year

  26. TOC is eliminating bottlenecks • “The slowest vehicle in a convoy sets the pace” A constraint is anything in an organization that limits it from moving forward or achieving its goal When the constraint (critical path) is not progressing, the process is not progressing! If 100 people worked to improve 100 different processes, the 1 person working on the constraint process would save the organization much more than all the other 99 people combined! ---RESOURCE THIS FIRST---

  27. One way to put it all together 12 Step 12 Step Process Improvement Plan 1: SIPOC 1: SIPOC 2: BOUNDARIES 2: BOUNDARIES See the See the See the See the Process Process … … 3: VOICE OF THE CUSTOMER 3: VOICE OF THE CUSTOMER Process Process … … 4: SET UP THE CURRENT STATE MAP 4: SET UP THE CURRENT STATE MAP 5: WASTE WALK 5: WASTE WALK See the See the See the See the 6: CREATE CURRENT STATE MAP 6: CREATE CURRENT STATE MAP Waste Waste … … Waste Waste … … 7: SPAGHETTI MAP / CIRCLE DIAGRAM 7: SPAGHETTI MAP / CIRCLE DIAGRAM 8: FLOW ANALYSIS 8: FLOW ANALYSIS Breakthrough!! 9: CREATE IDEAL STATE MAP 9: CREATE IDEAL STATE MAP 10: DEVELOP FUTURE STATE MAP 10: DEVELOP FUTURE STATE MAP Lead the Way Lead the Way Lead the Way Lead the Way 11: DEVELOP FLOW LAYOUT 11: DEVELOP FLOW LAYOUT toward it toward it … … toward it toward it … … 12: RAPID IMPROVEMENT PLAN 12: RAPID IMPROVEMENT PLAN

  28. W/C 51A/B PC P.C. Material Technician Material Technician NDI Strip Tank STRIP NDI TANK NDI OFFICE Paint Booth PAINT BOOTH W/C 51A/B Paint Booth 51E PAINT BOOTH Office NDI N OFFICE D TOOL Strip Tank I ROOM AWP/RMS STRIP ROOM SAFETY 520 PC 51D P.C. PC Before/After Spaghetti Diagram BEFORE AFTER

  29. Circle Diagram ISEA CRANE SUPPLY CRANE SUPPLY C.O. DAAS DAAS DEPT HEAD SNAP DEPT HEAD SNAP ITEM MGR STOCK POINT SK SK BO1 BO1 DOCKSIDE CRANE DEPOT PEO IWS2 SUPV Current State Future State Main Tech Main Tech ISEA C.O. STOCK POINT PEO IWS2 SUPV Handoffs … 47 Flow Clock Time … 486 hrs Manual Touch Time … 108 hrs Handoffs … 10 Flow Clock Time … 90 hrs Manual Touch Time … 58 hrs

  30. Improve Define Measure Analyze Control Identify and Implement Quick Improvements RIE/Kaizen, 5S, Value Analysis, Generic Pull Systems, Four Step Rapid Setup Method DMAIC Improvement Process Road Map Activities • Review Project Charter • Validate Problem Statement and Goals • Validate Voice of the Customer and Voice of the Business • Validate Financial Benefits • Validate High-Level Value Stream Map and Scope • Create Communication Plan • Select and Launch Team • Develop Project Schedule • Complete Define Gate • Value Stream Map for Deeper Understanding and Focus • Identify Key Input, Process and Output Metrics • Develop Operational Definitions • Develop Data Collection Plan • Validate Measurement System • Collect Baseline Data • Determine Process Capability • Complete Measure Gate • Identify Potential Root Causes • Reduce List of Potential Root Causes • Confirm Root Cause to Output Relationship • Estimate Impact of Root Causes on Key Outputs • Prioritize Root Causes • Complete Analyze Gate • Develop Potential Solutions • Evaluate, Select, and Optimize Best Solutions • Develop ‘To-Be’ Value Stream Map(s) • Develop and Implement Pilot Solution • Confirm Attainment of Project Goals • Develop Full Scale Implementation Plan • Complete Improve Gate • Implement Mistake Proofing • Develop SOP’s, Training Plan and Process Controls • Implement Solution and Ongoing Process Measurements • Identify Project Replication Opportunities • Complete Control Gate • Transition Project to Process Owner Tools • Project Charter • Voice of the Customer and Kano Analysis • SIPOC Map • Project Valuation / ROIC Analysis Tools • RACI and Quad Charts • Stakeholder Analysis • Communication Plan • Effective Meeting Tools • Inquiry and Advocacy Skills • Time Lines, Milestones, and Gantt Charting • Pareto Analysis • Belbin Analysis • Value Stream Mapping • Value of Speed (Process Cycle Efficiency / Little’s Law) • Operational Definitions • Data Collection Plan • Statistical Sampling • Measurement System Analysis (MSA) • Gage R&R • Kappa Studies • Control Charts • Histograms • Normality Test • Process Capability Analysis • Process Constraint ID and Takt Time Analysis • Cause and Effect Analysis • FMEA • Hypothesis Tests/Conf. Intervals • Simple and Multiple Regression • ANOVA • Components of Variation • Conquering Product and Process Complexity • Queuing Theory • Mistake-Proofing/Zero Defects • Standard Operating Procedures (SOP’s) • Process Control Plans • Visual Process Control Tools • Statistical Process Controls (SPC) • Solution Replication • Project Transition Model • Team Feedback Session • Replenishment Pull/Kanban • Stocking Strategy • Process Flow Improvement • Process Balancing • Analytical Batch Sizing • Total Productive Maintenance • Design of Experiments (DOE) • Solution Selection Matrix • Piloting and Simulation

  31. Integrating a Culture of CPI LEAN Eliminating Non-Value Added Activities • Identify the Value Stream • Eliminate Over-Production • Eliminate Over-Processing • Create Process Flow • Create Pull System Six Sigma Reducing Process Variation • Consistent Repeatable Processes • Process Design / Redesign • Defect Prevention • Statistical Analysis • Voice of the Customer CPI Theory of Constraints Constraint Mitigation Identify the Constraint Exploit the Constraint Subordinate to the Constraint Elevate the System’s Constraint Repeat Step 1, the Constrainthas probably moved

  32. Roles & Responsibilities • Owns vision, direction, business results • Leads change • Allocates Resources • Owns Value Streams CPI Office Line Departments Executive Leadership • Owns Deployment Plan • Owns Communication Plan • Captures Metrics • Owns Rapid Improvement Plan • Owns Redeployment Plan • Owns financial results • Removes Barriers Value Stream Champion Deployment Champion • All Employees • Provide data and voice of customer inputs to VSA, RIE, and Projects • Apply concepts to their own jobs and work areas Master Black Belts TeamMembers • Trains Black Belts • Leads Complex Projects • Full-time position • Participate in CPI Events and Projects • Part time Black Belts Green Belts • Lead and/or support CPI Events & Projects • Full time or part time role • Expert on principles and tools • Leads larger projects • Trains & Coaches Green Belts • Full-time position

  33. Certification Requirements Green Belt • Pass course, exam, certificate • 4 RIEs or 1 Project and 2 RIEs Black Belt • Pass course, exam, certificate • 2 Projects ASQ Examination & Certification Master Black Belt • Teaching • 2-5 years minimum experience

  34. Projects (notional 3-6 months) Just Do Its Value Stream Champion Execute Team Leader (Line) Cross-Functional Team Black Belt GB (assist as needed) Which processes should be targeted? Executive Planning Session (EPS) Executive Leadership, 2-3 days, Target HICVS Value Stream Analysis (VSA) Value Stream Champion/BB, 2-3 days, Develop RIP Rapid Improvement Plan (RIP) Value Stream Champion/BBs&GBs, Execute RIP Rapid Improvement Event (RIE) (7 week cycle) 5S Standard Work Flow Pull Team Leaders (Line) Team Members (Line) Green Belts (GB) Facilitate

  35. WIIFM • I am learning fast and vicariously • I am a much happier consultant (Win-Win) • I know my role and the role of every person on my team • Decision-making is collective yet accountability is defined; objective vice subjective • Strategic vision is transparent • Success is immediate & measurable • The Value Stream Champion is integral • Transformational change is happening

  36. Questions & Comments Contact Information Vance A. Kinsey, MEd, CPT DoN LSS Master Black Belt Instructor, NAVSEA LSS College vance.kinsey@navy.mil vakinsey@yahoo.com (757) 642-2074

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