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Transactional Kaizen Events Betsi Harris Ehrlich Director, Six Sigma and Master Black Belt Tyco International/ADT Security...
ADT Security Systems, Inc. is a business unit within Tyco International  Major Product lines include Home and Commercial S...
Six Sigma was implemented at ADT in 2003.  The Six Sigma Academy was utilized to assist in implementation, providing train...
What is Kaizen? <ul><li>Chinese words </li></ul><ul><ul><li>Kai = change </li></ul></ul><ul><ul><li>Zen = good  </li></ul>...
What are Kaizen Events? <ul><li>Kaizen Events – also referred to as Blitzes or Rapid Improvement Events – are two to five ...
Typical Factory Event Schedule <ul><li>Identify and Clarify Objective </li></ul><ul><li>Determine Targets and Goals </li><...
Typical Transactional Event Schedule <ul><li>Identify and Clarify Objective </li></ul><ul><li>Determine Targets and Goals ...
Transactional Kaizen Events <ul><li>While there are stand-alone Kaizen events focusing on a limited scope solution, transa...
Typical Two Day Transaction Event <ul><li>Day One </li></ul><ul><ul><li>Review of event/project objectives and targets, al...
Successful Events <ul><li>Success Factors </li></ul><ul><ul><li>Clear objective and mandate to improve </li></ul></ul><ul>...
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  1. 1. Transactional Kaizen Events Betsi Harris Ehrlich Director, Six Sigma and Master Black Belt Tyco International/ADT Security Services, Inc. WCBF’s Lean Six Sigma Summit April 29 – May 2, 2008 Westin Lombard, Chicago
  2. 2. ADT Security Systems, Inc. is a business unit within Tyco International Major Product lines include Home and Commercial Security Systems, Fire Detection and Protection Systems, Fire Suppression Technologies, and Protective Equipment Over 7.8 million customers worldwide rely upon ADT security monitoring systems ADT helps protect over 80% of top 100 retailers with our electronic security and anti-theft systems Tyco International Employees: 118,000 employees in over 60 countries Tyco International FY 2007 Revenue: $18+ Billion Strengths include the ADT brand name and global service presence Challenges include retaining customers in addition to new sales and leveraging synergy among the various Tyco business units Tyco International/ ADT Security Systems Company Information
  3. 3. Six Sigma was implemented at ADT in 2003. The Six Sigma Academy was utilized to assist in implementation, providing training and Master Black Belt consultation Since 2004, the program has been administered internally without the use of external consultants Eight waves of Black Belts were trained from 2003 - 2007 and the first in-house Master Black Belt was hired in October 2003 Approximately 140 Black Belts and 200 Green Belts have been trained to date Major Six Sigma Centres of Excellence include Field Operations, Lead to Order, Order to Cash, Central Monitoring Systems and Corporate Services ADT has recognized approximately $140MM in savings since 2003. In addition to hard dollar savings, customer satisfaction has increased, especially among key strategic accounts, through incorporating Voice of the Customer within the Six Sigma projects Six Sigma at ADT Security Systems
  4. 4. What is Kaizen? <ul><li>Chinese words </li></ul><ul><ul><li>Kai = change </li></ul></ul><ul><ul><li>Zen = good </li></ul></ul>Rapid continuous improvement Change Good
  5. 5. What are Kaizen Events? <ul><li>Kaizen Events – also referred to as Blitzes or Rapid Improvement Events – are two to five day focused sessions where a cross-functional team focuses on a process to generate rapid improvement. </li></ul><ul><li>Typical Characteristics </li></ul><ul><ul><li>Scope is limited </li></ul></ul><ul><ul><li>Solution is generated as a team effort </li></ul></ul><ul><ul><li>Multiple tools are applied at the same time </li></ul></ul><ul><ul><li>Fast pace improvement </li></ul></ul><ul><ul><li>Requires financial benefits </li></ul></ul><ul><ul><li>Divided into 3 phases </li></ul></ul><ul><ul><ul><li>Pre-event preparation </li></ul></ul></ul><ul><ul><ul><li>Event </li></ul></ul></ul><ul><ul><ul><li>Post-event follow-up, execution and control </li></ul></ul></ul><ul><li>Transactional Kaizen Events are different from Factory Events because it is often difficult to implement improvements during the actual Event. </li></ul><ul><li>While the preparation for the Event is a primary key to success for both Transactional and Factory, the pre-event planning and the post-event deliverables are usually different. </li></ul>
  6. 6. Typical Factory Event Schedule <ul><li>Identify and Clarify Objective </li></ul><ul><li>Determine Targets and Goals </li></ul><ul><li>Document the Current State </li></ul><ul><li>Develop the Future State </li></ul><ul><li>Create an Implementation Strategy/Plan </li></ul><ul><li>- who, what, when </li></ul><ul><li>Implement </li></ul><ul><li>Check Results </li></ul><ul><li>Document and Implement Control Plan </li></ul><ul><li>Confirm and Maintain Results </li></ul>Planning After the Event During the Event
  7. 7. Typical Transactional Event Schedule <ul><li>Identify and Clarify Objective </li></ul><ul><li>Determine Targets and Goals </li></ul><ul><li>Document the Current State </li></ul><ul><li>Develop the Future State </li></ul><ul><li>Create an Implementation Strategy/Plan </li></ul><ul><li>- who, what, when </li></ul><ul><li>Implement </li></ul><ul><li>Check Results </li></ul><ul><li>Document and Implement Control Plan </li></ul><ul><li>Confirm and Maintain Results </li></ul>Planning After the Event During the Event
  8. 8. Transactional Kaizen Events <ul><li>While there are stand-alone Kaizen events focusing on a limited scope solution, transactional events are often held as part of a Six Sigma DMAIC project during the Improve Phase </li></ul><ul><li>Critical success factor is to have the decision makers (executive sponsor and process owner) participate in the event </li></ul><ul><ul><li>Key event deliverable is approved solution and implementation plan that all stakeholders agree upon </li></ul></ul><ul><li>Appetite for executives to attend more than a two day meeting is limited, especially since Kaizen events are usually geared toward tactical rather than strategic issues, thus two day events are typical </li></ul><ul><li>The DMAIC project deliverables within the D-M-A phases are summarized and reviewed during the first day </li></ul><ul><li>Second day is geared toward developing future state map and detailed implementation plan </li></ul>
  9. 9. Typical Two Day Transaction Event <ul><li>Day One </li></ul><ul><ul><li>Review of event/project objectives and targets, along with meeting agenda </li></ul></ul><ul><ul><li>Short training on Kaizen Events and expected deliverables </li></ul></ul><ul><ul><li>Brainstorming on the “Ideal” process state or solution </li></ul></ul><ul><ul><ul><li>Ideal state is how the process would look if there were unlimited resources, no time delays or other barriers to meeting the customer’s requirements </li></ul></ul></ul><ul><ul><li>Review of current state process map and capability to meet customer requirements </li></ul></ul><ul><ul><li>Brainstorming analysis to determine size and nature of gap between current and ideal state – usually involves reviewing data gathered in the Measure and Analyze phases </li></ul></ul><ul><li>Day Two </li></ul><ul><ul><li>Brainstorming and mapping of future state process to close gap between current state and what the customer requires </li></ul></ul><ul><ul><li>Detailed implementation plan, with project tasks, due dates and responsible person </li></ul></ul>
  10. 10. Successful Events <ul><li>Success Factors </li></ul><ul><ul><li>Clear objective and mandate to improve </li></ul></ul><ul><ul><li>Decision makers participate in the event or delegate decision making authority to Kaizen team members </li></ul></ul><ul><ul><li>Subject matter experts for every part of the process participate </li></ul></ul><ul><ul><li>Experienced facilitator who can control group of seasoned, knowledgeable employees yet encourage engagement of all attendees </li></ul></ul><ul><ul><li>Significant pre-event planning to document </li></ul></ul><ul><ul><ul><li>Customer requirements </li></ul></ul></ul><ul><ul><ul><li>Current state process </li></ul></ul></ul><ul><ul><ul><li>Current process capability </li></ul></ul></ul><ul><li>Why Do Events Fail? </li></ul><ul><ul><li>Objective too vague/ scope too large </li></ul></ul><ul><ul><li>Poor pre-event planning and post-event execution </li></ul></ul><ul><ul><li>Unclear measure of success </li></ul></ul><ul><ul><li>Incorrect team makeup </li></ul></ul><ul><ul><li>Resources not made available </li></ul></ul><ul><ul><li>Lack of management support </li></ul></ul><ul><ul><li>Poor time management </li></ul></ul><ul><ul><li>Untrained facilitators </li></ul></ul>
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