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The S.Q.S. Methodology

The S.Q.S. Methodology. Meet Jay Watson -.

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The S.Q.S. Methodology

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  1. The S.Q.S. Methodology Meet Jay Watson - founder of freeleansite.comFor over 30 years, Jay has been a lean advocate promoting improvement initiatives within Business and Industry. He’s enjoyed ‘stints’ w/ G.E., Honeywell, Motorola and others.Earned degrees in Engineering, Business and Human Resource Development.

  2. The S.Q.S. Methodology Operational Excellence: Our Destiny !

  3. Introduction to S.Q.S. Operational Excellence … starts with a - “Continuous Improvement Mentality”

  4. Introduction to S.Q.S. What is a Continuous Improvement Mentality ? A concerted effort of Leadership - to continuously improve work and work processes utilizing industrial engineering application methodologies … • Lean Enterprise (Toyota Production System) • Six Sigma (DMAIC, DFSS methodologies) • Business Process Management/ Analysis (Transactional processes)

  5. 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.”

  6. 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.”

  7. Introduction to S.Q.S. Business Process Management <Analysis> … (also called ‘Lean Office’) - ProvidesManagerial ‘Line of Sight’ from Customer Requirement (Order) to Delivery > clear measurements and priorities that connect from top to bottom. (Transactional and Operational KPI’s) “Key Performance Indicators – Lead Time, Cycle Time, Quotation Response Time, Cost of ECO’s, changes to Customer schedules/requirements, COS, COGS, et al ”

  8. Introduction to S.Q.S. Need for Business Process Analysis … “The lack of initial Six Sigma emphasis in the non manufacturing areas was a mistake that cost Motorola at least $5 billion dollars over a four year period.” - Bob Galvin, Former CEO Citation: Lean Six Sigma for Service, Michael George, 2003

  9. Introduction to S.Q.S. Need for Business Process Analysis … “The lack of initial Six Sigma emphasis in the non-manufacturing areas was a mistake that cost Motorola at least $5 billion dollars over a four year period.” - Bob Galvin, Former CEO Citation: Lean Six Sigma for Service, Michael George, 2003

  10. Introduction to S.Q.S. Continuous Improvement Mentality Garner Individual and Team participation through several planned approaches … • Suggestions/ Idea Bank • Benchmarking/ Best Practices • Cross -functional Work Teams • Application Workshops • Professional Development

  11. Suggestion Enter into Idea Bank Use Impact/Effort Grid Under Review facilitated by SQS Council of Champs (steering comm.) OPEX Approved Parking Lot Approved significant scope Small Scope (JDI) projects (e.g. >$100K, > 2 activities remain in Idea mos) on list - with an Bank for tracking owner [remove from Idea Bank] Active Idea Bank Review Process

  12. The S.Q.S. MethodologyEmploy Improvement Initiatives Operational Excellence - Focus our efforts on concerns of Safety, Quality and Speed … (Productivity) Objective … • Describe the purpose of each of the elements • Explore requirements of each element • Define general time and resource commitments

  13. The S.Q.S. MethodologyEmploy Improvement Initiatives • “Safety” • Pro-active Leadership approach to preventing workplace incidents, accidents and personal injury… • A Japanese Leadership insight: • “Quality begins and ends with Safety”

  14. Accountability Meeting • Safety • Site Map identifying all places of safety incidents

  15. The S.Q.S. MethodologyEmploy Improvement Initiatives • “Safety”One½ hr. meeting, 1st of each month… > Workshop topics may include: • HR/ Corp. Issues - Technical, Legal, Moral, Ethical • Fire, EMT’s, First Aid, CPR, Fire Squad/ Fire Drills • Compliance (OSHA, Company Safety Audits) • Poka-yoke and specific SQS Operational topics > Indoctrination, propagation of “6S” • Continued Implementation/ Follow-up/ Audits/ Visual Management/ Visual Control

  16. The S.Q.S. MethodologyEmploy Improvement Initiatives • “6S” Review … • Practical approach to sustaining workplace productivity … • 1S – Sort (organize) • 2S – Set in order (everything in its’ place) • 3S – Shine (cleanliness) • 4S – Standardize (POU, shadow boards, Kanban rules) • 5S – Sustain (spider diagrams from audits) • “6S” teams operate in factory and office areas [Safety is the 6th “S” !!]

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

  18. The S.Q.S. MethodologyEmploy Improvement Initiatives • “Quality” Weekly Team sessions may include: > Business Process Management <Analysis> • Executive Value Stream/ BP (Leadership Team) > Champion Development and Training • Professional Development (Technical/ Supervisory) > Six Sigma implementation (‘Belts’) with regularly scheduled team “Report-outs” – • “CIP” modules delivered JIT

  19. Accountability Meeting • Scrap/Rework • Daily number of pieces and total $$ scrapped or reworked parts/ lots/ batches/ tons

  20. The S.Q.S. MethodologyEmploy Improvement Initiatives > Business Process Management (Analysis) • Executive Value Stream (Leadership Team) • Linked Dashboards – Goal alignment > Champion Development and Training • Professional Development (Technical/ Supervisory) > Six Sigma & Lean implementation (‘Belts’) with regularly scheduled team “Report-outs” – • Training delivered JIT, Mentoring support… All Have Accountability Meetings !

  21. Accountability Meeting • Who – all OPEX teams • Manufacturing supervisors, production planners, Customer Service reps, buyers, Engineering reps, QA

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

  23. Accountability Meeting • On Time Performance • Missed Customer orders, late manufacturing work orders, Daily & Monthly On Time Performance Percentages

  24. The S.Q.S. MethodologyEmploy Improvement Initiatives • “Speed” Weekly sessions may include : • Book reviews with Leadership Team • Lean Thinking; Joe’s Garage; Leaning into Six Sigma > Lean projects following an abbreviated D/M-A-I-C process with regularly scheduled Team ‘Report-outs’ (accountability) 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 …

  25. Accountability Meeting • Planning/Execution • Identify critical work center loads, and execution gaps

  26. Introduction to S.Q.S. With a well-planned implementation, expectedRESULTS may include … (within 12 months) • 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

  27. Accountability Meeting • Purchasing • Top 5 suppliers with most lateness, track those purchase orders affecting customer orders

  28. Introduction to S.Q.S. 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

  29. Introduction to S.Q.S. Good for GE, Honeywell, Motorola ….. but, we’re “newbie's” ! What can we expect by end of the first year ?? • 15% ‘savings’ (hard cost reductions/ cost elimination/ cost avoidance) of Sales for the plant!

  30. Introduction to S.Q.S. Real Improvement: Let’s begin … Slow and Sure

  31. Introduction to S.Q.S. Initial Engagements (Site example…) Formation of Productivity Improvement Teams Council of Champions – OpEx advisors (Steering Committee) ------------------------------------------------------------------- • 6S Team (Office administration/transactional areas) • 6S Team (Floor, 1st shift) • 6S Team (Floor, 2nd shift) -------------------------------------------------------------------------------------------------------------------------------------------------------------- • 2 Six Sigma Teams (Floor, 1st shift) • 1 Six Sigma Team (Floor, 2nd shift) --------------------------------------------------------------------------------------------------------------------------------------------------------------- • 1 Business Process Analysis (‘Lean Office’) • 2 Lean Application Teams (Floor, 1st shift) • 1 Lean Application Team (Floor, 2nd shift)

  32. Accountability Meeting • Special Issues • Orders that are high $$, high profile, high technical difficulty, or material inventory issues identified and tracked

  33. Introduction to S.Q.S. Initial Engagements: Teamwork is key! Areas addressed - • Leadership Team: Guidance, Planning • 6S Teams: Safety, Organization, Flow • Six Sigma Teams: Defects, Scrap, Yield • Lean Enterprise Teams: Cycle Time, Waste

  34. Introduction to S.Q.S. • Financial - $ value savings • Lead time reduction • Delivery improvement • Simplification • Standardization • Win-Win for suppliers • Best-in-class performance • Leverage learning • Share best practices Set Operational and Financial GOALS

  35. Introduction to S.Q.S. Initial Engagements[3 – 6 months] Scheduled Team “Report-outs” - • “Define” (3 weeks) _________ • “Measure” (4 weeks) _________ • “Analyze” (3 weeks) _________ • “Improve” (4 weeks) _________ • “Control” (3 weeks) _________ • “20XX” C.I. Plan(Concordance w/ Leadership Team)

  36. Introduction to S.Q.S. 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/ Individuals - Framed around “PGA” (Practical, Graphical, Analytical)

  37. Introduction to S.Q.S. What’s different with this approach ? • It gets results !! ($, involvement, change)

  38. The S.Q.S. Methodology Operational Excellence: Our Destiny !

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