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Improving Processes
Improving Processes
Improving Processes
Improving Processes
Improving Processes
Improving Processes
Improving Processes
Improving Processes
Improving Processes
Improving Processes
Improving Processes
Improving Processes
Improving Processes
Improving Processes
Improving Processes
Improving Processes
Improving Processes
Improving Processes
Improving Processes
Improving Processes
Improving Processes
Improving Processes
Improving Processes
Improving Processes
Improving Processes
Improving Processes
Improving Processes
Improving Processes
Improving Processes
Improving Processes
Improving Processes
Improving Processes
Improving Processes
Improving Processes
Improving Processes
Improving Processes
Improving Processes
Improving Processes
Improving Processes
Improving Processes
Improving Processes
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Improving Processes

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  • Six Sigma and Lean approach process improvement from two different philosophies. Six Sigma is based on the theory that the key to quality is to reduce the variability on parts. The follow-on assumption is that removing variation of the parts will result in a more consistent and predictable product, which will reduce costs. Lean comes at the cost problem by looking at the system level value stream and looking for opportunities to remove waste and improve flow. Both approaches have their application, but neither is the “silver bullet” for all improvement projects.
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    • 1. II. Improving Processes
    • 2. II. Improving Processes
      • Quality Control
        • Inspection
        • SPC
        • Capability Analysis
      • Total Quality Management (TQM) or Continuous Quality Improvement (CQI)
        • Fishbone Diagrams
        • Pareto Analysis
        • Scatter Plots
        • Check Sheets
      • Business Process Reengineering (BPR)
    • 3. Learning or Experience Curve Cost per Unit Cumulative Number of Units from Plant x 2x 4x P x P 2x The cost of a unit after cumulative output doubles, compared to the prior cost per unit. E.g., 70% learning curve indicates the cost per unit decreases by 30% with each cumulative doubling.
    • 4. Sources of Learning
      • Individual
        • The worker naturally gets better at a task
        • Plateau effect
      • Organizational
        • Developing better processes
        • Improving technology & equipment
        • Working with suppliers
        • Working with customers
      • Learning doesn’t “just happen”
    • 5. Improving the “Factory”
      • Factory as Laboratory
        • Performing R&D in the Manufacturing Plant
        • Chaparral Steel
          • Leonard-Barton, Dorothy, “The Factory as a Learning Laboratory,” Sloan Management Review, Fall 1992, pp. 23-38.
      • The Service Factory
        • Incorporating Service Attributes into the Factory
        • Inviting Customer to the Factory
      • The Exchange of Ideas
        • Services learning efficiency from Manufacturing
        • Manufacturing learning effectiveness from Services
    • 6. Stages of Knowledge of Process & Quality Control
      • None – ignorance
      • Know a good outcome from bad
      • Know the characteristics that describe a quality outcome
      • Prioritization of these quality characteristics
      • Know the variables that lead to these outcomes
      • Know the impact of individual variables
      • Know the interaction effects among variables
      • Able to measure the variables
      • Able to control process to achieve quality outcomes – repeatedly & consistently
      Art Science
    • 7. Quality Assurance — When to Inspect? INPUT PROCESS OUTPUT RAW MATERIALS PURCHASED PARTS BEFORE A COSTLY OPERATION BEFORE A COVERING OR CLOSING OPERATION BEFORE AN IRREVERSIBLE PROCESS FINISHED GOODS
    • 8. Quality Assurance
      • Achieved through
        • Inspection
          • 100% inspection, sampling inspection
        • Process Control
      Amount of Inspection Cost Cost of Inspection Total Cost Cost of passing Defects Optimum
    • 9. Competing Quality Control Concepts
      • Inspect quality in
        • Acceptable Quality Levels (AQLs)
        • Sample from a Lot
        • Decision Rule: if X are good, accept the Lot
        • Used both for outgoing and incoming testing
        • Philosophy: It’s okay to ship s***
      • Build quality in
        • Statistical Quality Control (SPC)
        • Inherent Capability Analysis
    • 10. Inherent Capability Analysis
      • Determine the inherent capability of the process to produce goods at some quality level.
        • Gather historical data on a process
        • If most output (+/-3  falls within Design Specs, then process is capable
        • Six-Sigma Quality Level: when 12  output (+/- 6  falls within Design Specs
    • 11. Six Sigma Philosophy
      • Goal: reduce variability in a process to the point where the resulting product becomes more
        • Robust in use (good for the customer)
        • Easier to design because parts can be “spec’d” to tighter tolerance
        • Less expensive to manufacture due to lower quality failures (also good for the customer!)
      • Quality Level at 6 sigma
        • 3.4 defects per million opportunities
    • 12. Six Sigma
      • The Philosophy
        • Build to Customer Critical To Quality (CTO) criteria
        • Fact-driven, measurement-based
        • Structured problem solving approach
        • Define, Measure, Analyze, Improve, Control (DMAIC)
        • Improvement projects become part of everyone’s job
      • The Players
        • Champions: Manager in the project area
        • Master Black Belts: Mentors the project teams
        • Black Belts: Full time team leader, trainer, facilitator
        • Green Belts: Team members
    • 13. Statistical Process Control
      • Capable processes also must be controlled
      • SPC distinguishes 2 types of variability
        • Normal (Random) variability
        • Abnormal (Structural) variability
      • How to apply SPC
        • Construct charts (and update occasionally!)
        • Collect data regularly – sampling plan
        • Observations outside of limits indicate the process potential is “out of control”- statistically
        • Find “assignable causes”
    • 14. Developing Control Charts
      • Identify the process you want to study
      • Check whether the process is running OK
      • Take sample outputs at some fixed intervals
      • For each sample - calculate the Average and the Range
      • After taking sufficient samples,
        • Calculate the average of the sample averages, and of the ranges
        • Calculate the Std. Dev.s for both.
      • Set the UCL (Upper Control Limit) at Average + 3*Std.Dev.
      • Set the LCL (Lower Control Limit) at Average - 3*Std. Dev.
    • 15. Control Charts
      • Variable Control Chart (assumes normal distribution)
      • Range Chart
      • p - chart
        • also known as fraction defective chart (assumes binomial distribution)
        • s.d. = SQRT(f.d.*(1 - f.d.)/n) {f.d. = fraction defective}
      • c - chart
        • also known as defective chart (assumes Poisson distribution)
        • s.d. = SQRT(mean)
      • For any control chart:
      • UCL (Upper Control Limit) = mean + z*s.d.
      • LCL (Lower Control Limit) = mean - z*s.d.
      • where z is set to reflect the assurance that the process is in control.
    • 16. Statistical Process Control Charts Upper Control Limit Lower Control Limit 1 2 3 4 5 6 Observation Block x x x x x x x x 7 8 Center line
    • 17. SPC – Types of Measures
      • Attributes
        • Physical measures: weight, height, size
      • Characteristics
        • Proportion defective
    • 18. TQM Defined
      • American Society of Quality Control
        • Simply put, TQM is a management approach to long term success through customer satisfaction
        • TQM is based on the participation of all members of an organization in improving processes, products, services, and the culture they work in.
        • TQM benefits all organization members and society.
    • 19. The Start of TQM...
      • Everything started by Walter Shewhart
        • Bell Labs in the 1920s
        • Developed the concept of Statistical Process Control
        • Two young scientists working with him:
          • W. Edwards Deming
          • Joseph Juran
    • 20. W. Edwards Deming
      • Key Arguments
        • The basic cause of sickness in American industry and resulting unemployment is failure of top management to manage.
        • Everyone doing his[/her] best is not the answer. It is necessary that people know what to do.
        • Drastic change is required. The responsibility for change rests on management. The first step is in learning how to change.
        • Quality and productivity are not to be traded off against each other.
        • Productivity is a by-product of quality and of doing the job right the first time.
    • 21. W. Edwards Deming’s Fourteen Points
      • 1. Create constancy of purpose
      • 2. Adopt the new philosophy
      • 3. Cease dependence on mass inspection
      • 4. Don’t award business on price tag alone
      • 5. Improve constantly the system of production and
      • service
      • 6. Institute training
      • 7. Institute leadership
    • 22. W. Edwards Deming’s Fourteen Points
      • 8. Drive out fear
      • 9. Break down barriers between staff areas
      • 10. Eliminate slogans, exhortations, and targets for
      • the workforce
      • 11. Eliminate numerical quotas
      • 12. Remove barriers to pride of workmanship
      • 13. Institute a vigorous program of education and
      • retraining
      • 14. Take action to accomplish the transformation
    • 23. Deming’s Seven Deadly Diseases
      • 1. Lack of constancy of purpose
      • 2. Emphasis on short-term profits
      • 3. Evaluation by performance rating, merit rating,
      • or annual performance review
      • 4. Mobility of management
      • 5. Running a company on visible figures alone
      • 6. Excessive medical costs
      • 7. Excessive costs of warranty, fueled by lawyers
      • that work on contingency
    • 24. Quality Management DOCUMENT CHANGES IMPLEMENT IN REST OF THE ORGANIZATION PLAN DO ACT CHECK IDENTIFY AND ANALYZE THE PROBLEM DATA COLLECTION PARETO ANALYSIS FLOW CHARTS CAUSE AND EFFECT DIAGRAMS CONTROL CHARTS IMPLEMENT CHANGES ON A SMALL SCALE EVALUATE NEW DATA CONTINUOUS IMPROVEMENT - THE DEMING WHEEL
    • 25. Joseph Juran
      • The users of a product or service should be able to count on it to do what it’s supposed to do!
      • Five dimensions of Fitness for Use
        • Quality of Design
        • Quality of Conformance
        • Availability
        • Safety
        • Field Use
      • Costs of Quality
    • 26. Quality Dimensions
      • Design Quality
        • Characteristics of the product’s original design
      • Conformance Quality
        • Building products (or delivering services) to the specifications of the product designers
    • 27. Costs of Quality
      • Prevention
      • Appraisal
      • Internal Failures
      • External Failures
    • 28. More Gurus
      • Crosby - Quality is Free
      • Feigenbaum - Total Quality Control (1954)
      • Taguchi - Robust Manufacturing
      • Ishikawa - Total Quality Control the Japanese Way
    • 29. Taguchi’s Quality Imperatives
      • Quality losses are mainly external product failure
      • Robustness results primarily from product design
      • Robust products have strong signal-to-noise ratio
      • Use experimental design to test component part interaction effects
      • Quality Loss Function: square of deviation from target value X cost of countermeasure
      • Just in spec = just out of spec
      • Trivial deviation from target will “stack up”
      • Reduction in field failures will reduce factory failures
    • 30. Taguchi vs. Zero Defects Who’s the better shot?
      • Consistent
      • Predictable
      • But not on target
      • On target
      • More variability
    • 31. Garvin’s Dimensions of Quality
      • Performance
      • Features
      • Reliability
      • Conformance
      • “ Managing Quality: The Strategic and Competitive Edge,” David Garvin, 1988.
      • Durability
      • Serviceability
      • Aesthetics
      • Perception
    • 32. Quality Dimensions
      • Tangible Goods
        • Safety
        • Durability
        • Reliability
        • Aesthetics
        • Conformance
        • Performance
        • Serviceability
      • Services
        • Reliability
        • Responsiveness
        • Assurance
        • Empathy
        • Tangibility
    • 33. Malcolm Baldrige National Quality Award
      • Created by Public Law 1987
      • Named after a Secretary of Commerce
      • Three Purposes
        • 1. To encourage quality in American industry
        • 2. To promote quality awareness and continuous improvement
        • 3. To recognize companies that demonstrate successful quality strategies and quality achievement
    • 34. Lean Production
      • A combination of multiple tool sets
        • JIT production (cellular manufacturing)
        • Safe workplace (5Ss)
        • Pursuit of perfection
        • Visual management
        • Empowered teams
        • Six sigma
    • 35. Six Sigma vs. Lean – C omplementary
      • Six Sigma
      • Remove variation from processes to achieve uniform flow
      • Problem/project focus
      • Research projects with longer timeline (3-4 months)
      • Higher complexity with root cause unknown
      • Lean
      • Remove waste, rework, inventory to reduce flow time
      • Flow focused
        • Remove bottlenecks
        • Material velocity
      • Immediate results (1-2 weeks)
      • Low complexity with known solutions
    • 36. Lean Production
      • JIT production (cellular manufacturing)
      • Heijunka: Level workloading
      • Pursuit of perfection
      • Visual process management
      • Empowered teams
      • Kaizen: Continuous improvement involving everyone
      • Poka Yoke: mechanism to stop defects or make errors obvious
    • 37. Lean Concepts
      • Kaizen: Continuing improvement involving everyone
      • Poka Yoke: mechanism to stop defects or make errors obvious
      • Heijunka: Level production loading across all product variations
      • Kanban: “Signboard” signal to authorize production
      • Andon: “Lantern” – board that signals quality issue
      • Jidoka: autonomation
      • 5 Ss
      • Sources: www.superfactory.com, www.tpmonline.com
    • 38. Other Kaizen Tools: 5 Ss Source: http://www.kaizen-consulting.com/training_5s.htm “ The less self-discipline you need, the better” Sustain by making 5S second nature Self-discipline, Sustain (Shitsuke) 5 “ See and recognize what needs to be done” Make routine and standard for what good looks like Standardize (Seiketsu) 4 “ The best cleaning is to not need cleaning” Clean and eliminate the sources of filth Sweep, Shine (Seiso) 3 “ A place for everything, and everything in its place” Locate everything at the point of use Straighten, Set in Order (Seiton) 2 “ When in doubt, throw it out” Remove unnecessary items from the workplace Sort (Seiri) 1 Catch Phrase Action Name Step
    • 39. Mudas – 7 Wastes Source: www.Gemba.Com GembaSigma Pokayoke One-piece pull Built-in quality 3P Jidoka Process failure Mis-loaded part Batch process Inspect-in quality Incapable machines Scrap, Rework Defects Correction Field failure Variation Missing parts Work that contains errors, rework, mistakes or lacks something necessary Defects External kanban Supplier development One-piece flow lines Set-up reduction Internal kanban Supplier lead-times Lack of flow, Long set-ups Long lead-times Paperwork in process Lack of ordering procedure Raw materials Work in process Finished goods Consumable supplies Purchased components More materials, parts, or products on hand than the customer needs right now Inventory Flow lines One-piece pull Office Kaizen Lean Design Delay between processing Push system Customer voice not understood Designs “thrown over the wall” Multiple cleaning of parts Paperwork Over-tight tolerances Awkward tool or part design Effort that adds no value from the customer’s viewpoint Processing Downstream pull Takt time production In-process gauging Jidoka Office Kaizen TPM Push production Work imbalance Centralized inspection Order entry delays Lack of priority Lack of communication Waiting for parts Waiting for prints Waiting for inspection Waiting for machines Waiting for information Waiting for machine repair Idle time created when material, information, people, or equipment is not ready   Waiting 5S, Point of Use Storage Water Spider One-piece flow Workstation design Workplace disorganization Missing items Poor workstation design Unsafe work area Searching for parts, tools, prints, etc. Sorting through materials Reaching for tools Lifting boxes of parts Movement of people that does not add value Motion Flow lines Pull system Value Stream organizations Kanban Batch production Push production Storage Functional layout Moving parts in and out of storage Moving material from one workstation to another Movement of product that does not add value Trans- portation Pull system scheduling Heijunka – level loading Set-up reduction TPM Forecasting Long set-ups “ Just in case” for breakdowns Producing product to stock based on sales forecasts Producing more to avoid set-ups Batch process resulting in extra output Producing more than the customer needs right now Over-|production Countermeasures Causes Examples Definition The 7 Wastes –
    • 40. Bibliography
      • The Six Sigma Way (ISBN 0-07-135806-4) by Pande, Neuman, and Cavanaugh
      • The Power of Six Sigma (ISBN 0-7931-4434-5) by Subir Chowdhury
      • Six Sigma (ISBN 0-385-49437-8) by Harry and Schroeder.
      • The Six Sigma Handbook (ISBN 0-07-137233-4) by Pyzdek is more technical and becoming the 'handbook' for Black Belts.
      • The Machine that Changed the World, James Womack
      • www.6-sigma.com
      • www.sixsigma.co.uk
      • www.sixsigmasystems.com
      • www.isixsigma.com
      • www.shawresources.com/pdf/Choosing%20a%20Quality%20Improvement%20Methodology.pdf
      • www.ge.com/en/commitment/quality/whatis.htm
      • http://www.swmas.co.uk/Lean_Tools/The_7_Wastes.php
      • http://www.kaizen-consulting.com/training_7w.htm
    • 41. More References
      • http://www.strategosinc.com/just_in_time.htm
        • A GREAT summary of manufacturing improvement concepts from Ford to lean. A MUST READ.
      • http://hbswk.hbs.edu/item.jhtml?id=2646&t=operations
      • http://www.kaizen-consulting.com/training_5s.htm
      • http://www.kaizen-consulting.com/training_7w.htm
        • This site from Gemba Research does a nice job of summarizing lots of the TPS tools and concepts.

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