Introduction to S.Q.S.

1. Introduction to S.Q.S. Continuous Improvement: An OpEx Implementation Process freeleansite.com

2. Introduction to S.Q.S. Operational Excellence starts with a … “Continuous Improvement Mentality” freeleansite.com

3. Introduction to S.Q.S. What is a Continuous Improvement Mentality ? Concerted effort of Leadership to continuously improve work and work processes utilizing common industrial engineering application methodologies … • Lean Enterprise (Toyota Production System) • Six Sigma • Business Process Management/ Analysis freeleansite.com

4. Introduction to S.Q.S. The Lean Enterprise … - Identify and eliminate Waste (Muda) and wasteful practices … Providing value in the eyes of the customer … “any part of the process for which the customer is willing to pay. Value added activities would be those involved in producing and delivering goods and services.” freeleansite.com

5. Introduction to S.Q.S. Six Sigma … - Measure defects in a process and … (with rigor and discipline) systematically figure out ways to reduce them to zero. “Puts practical tools to work to root out defects at all levels achieving tangible results of cost savings, employee, customer and stakeholder satisfaction.” freeleansite.com

6. Introduction to S.Q.S. Business Process Management/ Analysis … - ProvidesManagerial Line of Sight > clear measurements and priorities that connect from top to bottom in the organization. “Key Performance Indicators” freeleansite.com

7. Introduction to S.Q.S. Continuous Improvement Mentality Garner Individual and Team participation through several planned approaches … • Suggestions • Benchmarking • Cross-functional Work Teams • Application Workshops • Professional Development freeleansite.com

8. The S.Q.S. MethodologyEmploy Improvement Initiatives ! Within Operations … We focus efforts on concerns of Safety, Quality and Speed … (Productivity) Let’s … • Describe the purpose of each of the elements • Explore requirements of each element • Define general time commitments freeleansite.com

9. The S.Q.S. MethodologyEmploy Improvement Initiatives • “Safety” • Proactive Management approach to preventing workplace Incidents, Accidents and Personal injury… freeleansite.com

10. The S.Q.S. MethodologyEmploy Improvement Initiatives • “Safety”One½ hr. meeting, 1st of each month… > Workshop topics may include: • Haz Mat/ Haz Comm • HR Issues - Technical, Legal, Moral, Ethical • Fire, EMT’s, First Aid, CPR, Fire Squad/ Fire Drills • Compliance (Visual Control, Visual Management) • QWL Issues, Hazards and Operational topics > Indoctrination, propagation of “5S” • Continued Implementation/ Follow-up/ Audits freeleansite.com

11. The S.Q.S. MethodologyEmploy Improvement Initiatives • “5S” Review … • Practical approach to sustaining workplace productivity … • 1S – Sort (organize) • 2S – Set in order (everything in its’ place) • 3S – Shine (cleanliness) • 4S – Standardize (shadow boards, Kanban rules) • 5S – Sustain (spider diagrams from audits) • “5S” teams operate in factory and office areas freeleansite.com

12. The S.Q.S. MethodologyEmploy Improvement Initiatives • “Quality” • Proactive Management approach to Defect Reduction and Product and Process Optimization Combined with … • Poka - Yoke (Mistake Proofing) freeleansite.com

13. The S.Q.S. MethodologyEmploy Improvement Initiatives • “Quality” Weekly Team sessions may include: > Business Process Management/ Analysis • Value Stream Mapping (Leadership Team) > Champion Development and Training • Professional Development (Management) > Six Sigma implementation (Black Belts) with regularly scheduled team “Report-outs” – • “Six Sigma Simplicity” modules delivered JIT freeleansite.com

14. The S.Q.S. MethodologyEmploy Improvement Initiatives • “Speed” (productivity) • Proactive Management approach to Identify and Eliminate Waste through ‘Lean Linking’ … freeleansite.com

15. The S.Q.S. MethodologyEmploy Improvement Initiatives • “Speed” Weekly sessions may include: > Book reviews with Leadership Team > Lean projects following an abbreviated D/M-A-I-C process with regularly scheduled Team ‘Report-outs’ Topics/ Projects include: • Kanban / Visual Control / Visual Management • Point-of-Use Tooling, Tools, Supplies • Cells, TAKT, Line Balance/Flow Issues • Total Productive Maintenance, Andon • Set-up, change-over reduction, etc … freeleansite.com

16. The S.Q.S. Methodology SafetyThe standard metrics of accident/ incident frequency and severity are sufficient. QualityWhat is meant by quality will vary by company, but it must be quality in the eyes of the customer. As a result, customer returns or warranty claims are typically the basis for this metric. It is not a summary of internal quality metrics. It is important to realize that those metrics are only important to the extent that they provide information management can use to minimize cost, improve flow and provide customer “value”. (Value definition = transformation of form, fit, function or information; done right the first time; Customer willing to pay for…) Speed (Delivery performance)Delivery performance is the percentage of customer orders shipped when the customer requested them to be shipped. It should not be modified to accommodate company policies or shipping promises. It is purely a metric of manufacturing’s (or the service department’s) ability to meet customer requirements. freeleansite.com

17. The S.Q.S. Methodology With a well-planned implementation, expectedRESULTS may include … • 35% to 50% reduction in lost time/ safety-related incidents and accidents • 15% to 30% decrease in scrap and rework • 25% to 40% reduction in total cycle time freeleansite.com

18. The S.Q.S. Methodology Check out the Gain$achieved by companies that have fully invested in improvement initiatives … • G.E. > Added more than $ 2 billion to the bottom line in 1999 alone • AlliedSignal/ Honeywell > Report savings of over $ 1.5 billion since 1993 • Motorola > Saved more than $ 15 billion in first 10 years of Six Sigma inception freeleansite.com

19. The S.Q.S. Methodology Real Improvement: Let’s begin … Slow and Sure freeleansite.com

20. Introduction to S.Q.S. (example) Initial Engagement[Jan – June] Garner Individual and Team participation through 7 Productivity Improvement Teams • 5S Team (Administration) • 5S Team (Floor, electronics) • 5S Team (Floor, sheet metal) -------------------------------------------------------------------------------------------------------------------------------------------------------------- • Six Sigma Team (Floor, electronics) • Six Sigma Team (Floor, sheet metal) --------------------------------------------------------------------------------------------------------------------------------------------------------------- • Lean Application Team (Floor, electronics) • Lean Application Team (Floor, sheet metal) freeleansite.com

21. Introduction to S.Q.S. Initial Engagement Areas addressed - • 5S Teams – Safety, Organization, Flow • Six Sigma Teams – Defects, Scrap, Yield • Lean Application Teams – Cycle Time, Waste Objectives: • Learn and apply C.I. tools/ techniques • Cost Take-out (savings): approx 5% of sales freeleansite.com

22. Introduction to S.Q.S. Initial Engagement[Jan – July] Scheduled Team Report – outs: • “Define” Jan • “Measure” March • “Analyze” April • “Improve” May • “Control” July 1st ! • “20XX” C.I. Plan(Leadership Team) freeleansite.com

23. The S.Q.S. MethodologyEmploy Improvement Initiatives What’s different with this approach ? - Incorporates Lean and Six Sigma (S-L-O-W-L-Y) - Voluntary, simple, easy and fun ! (modular, delivered JIT) - A pro-active approach … (managed, scheduled and planned) - Implemented on a ‘part-time’ basis (a few hours a week) - Directly linked to strategic performance goals - Taps full potential of the organization – Utilizes Cross-functional Teams/ SME’s/ Mentors freeleansite.com

24. The S.Q.S. Methodology Continuous Improvement: Our Destiny ! freeleansite.com