Lean Six Sigma Approved for Public Release
Overview <ul><li>What is  Lean Six Sigma? </li></ul><ul><li>What can  Lean Six Sigma  do? </li></ul><ul><li>How to get sta...
Paths to Cost Reduction <ul><li>Cut services </li></ul><ul><li>Reduce labor (lay-off) </li></ul><ul><li>Contract work out ...
What is Lean Six Sigma? <ul><li>Combined 2 industry concepts: </li></ul><ul><li>Lean </li></ul><ul><li>Six Sigma </li></ul...
Lean <ul><li>Focus on what is of VALUE to the customer </li></ul><ul><li>Separate non-value added from value added </li></...
Which is the better airline ticket? <ul><li>Ticket A </li></ul><ul><li>$500 round trip </li></ul><ul><li>6 hours </li></ul...
Lean Philosophy <ul><li>Value </li></ul><ul><ul><li>More to value than just cost </li></ul></ul><ul><ul><li>“ Defined by t...
Types of Activities <ul><li>Value-Added </li></ul><ul><ul><li>Brings product closer to it’s final form </li></ul></ul><ul>...
8 Types of Waste Steps are wasteful, people are valuable Approved for Public Release UNDER-UTILIZED SKILLS
Lean Example <ul><li>Valve Manufacturing </li></ul><ul><li>Objective: Reduce time to produce valves </li></ul><ul><li>Solu...
Lean Example <ul><li>Certification Package </li></ul>Not Required Redundant Review Minimize Rework Approved for Public Rel...
Batch versus Continuous Flow Process A Process B Process C 10 Minutes 10 Minutes 10 Minutes Batch & Queue Processing Conti...
Lean Approach Batch Dept 1 Dept 2 Dept 4 OUT 4 3 1 2 Dept 3 Continuous Flow Batch processing has a direct impact on the to...
Lean Approach Value-Added time is typically only a small percentage of the total time Time Broken Component Repaired Compo...
Lean Approach From:  NAVSEA VSA Training Date / Reference / Classification Overtype with Section Title Date / Reference / ...
Lean Approach Time <ul><li>Lean Focus </li></ul><ul><li>Make  all  of the Value Stream visible </li></ul><ul><li>Reduce or...
Continuous Flow Traditional Thinking: Batch Production—like a meandering stream with many stagnant pools, waterfalls, and ...
How Does Lean  Solve Problems? <ul><li>Focuses on what is of VALUE to the customer </li></ul><ul><ul><li>Understand custom...
Six Sigma Philosophy <ul><li>Reduce variation </li></ul><ul><li>Y=f(X) </li></ul><ul><li>Making decisions based on data  <...
What is “ Six Sigma ”? <ul><li>Change in quality philosophies </li></ul>Traditional “Goalpost” Philosophy USL LSL Loss $$ ...
How Does Six Sigma Solve Problems? Approved for Public Release Practical Problem (Define/Measure) Statistical Problem  (An...
Six Sigma Example <ul><li>Practical Problem </li></ul><ul><ul><li>Pass rate for Technicial Exams was declining </li></ul><...
What is “ Six Sigma ”? <ul><li>99.99966% of values are within specifications </li></ul>   USL LSL  A 6   Process   ...
Is “Six Sigma” Overkill? <ul><li>20,000 lost articles of mail per hour </li></ul><ul><li>15 minutes of unsafe drinking wat...
Pipe Welding Quality <ul><li>Reduce concave & convex defects in pipe butt welds </li></ul><ul><li>Experimented on the effe...
Effluent Discharge Approved for Public Release Frustration Cost Time to assemble Notice Required Low High Direct/Defined O...
“Value Stream Mapping” <ul><li>Tile Material Manufacturer </li></ul><ul><li>Mapped the “value stream” </li></ul><ul><li>Id...
Ways To Get To  Six Sigma <ul><li>Identify critical inputs & control them </li></ul><ul><li>Quantifiable management </li><...
Ways To Get To  Six Sigma <ul><li>Type 1 Corrective Action – Countermeasure </li></ul><ul><li>Type 2 Corrective Action – F...
“ But we aren’t mass production” <ul><li>Look for repetition: </li></ul><ul><li>Valve manufacturing </li></ul><ul><li>Cert...
“ But we aren’t mass production” <ul><li>Product Families </li></ul><ul><ul><li>Different products that follow the same st...
Supplier Lean Outreach Approved for Public Release
Why  Supplier Lean Outreach ? <ul><li>Extend  Lean and Six Sigma  to suppliers </li></ul>Shipyard Labor 39% 30% Purchased ...
Goal <ul><li>Conduct joint process improvement projects with VIRGINIA Class vendors to  reduce defects, and cycle time  vi...
Methodology <ul><li>Voice of the Customer </li></ul><ul><ul><li>All customers not just purchasing </li></ul></ul><ul><li>K...
How To Get Started “ We all tend to concentrate on taking corrective actions that we  know how to take , not necessarily c...
How To Get Started <ul><li>Involve the employees </li></ul><ul><li>Examine the detailed process with them </li></ul><ul><l...
How To Get Started <ul><li>Reduce work in process (WIP): </li></ul>WIP = Waiting =  Longer lead times Delayed sales Increa...
How To Get Started <ul><li>Books to read: </li></ul><ul><li>Lean Thinking .  Womack & Jones </li></ul><ul><li>Lean Six Sig...
How To Get Started <ul><li>Communicate with Electric Boat </li></ul><ul><li>Things you are doing </li></ul><ul><li>Ask for...
Wrap - Up <ul><li>What is  Lean Six Sigma? </li></ul><ul><li>What can  Lean Six Sigma  do? </li></ul><ul><li>How to get st...
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  • Extra: Continuous Flow is the flow of products in a balanced manner without barriers through the value stream. The ideal situation is one-piece flow at and between processes. The intent of continuous flow is to increase the velocity of products (reduced cycle time) and to make the production cycle predictable. In most companies, fixed ideas about how things should be manufactured are unwittingly created over the years. The fact that they get created is bad enough. Worse still is the fact that they are quickly adopted as the norm.
  • * MRP – Material Requirements Planning
  • Lean Six Sigma Approved for Public Release

    1. 1. Lean Six Sigma Approved for Public Release
    2. 2. Overview <ul><li>What is Lean Six Sigma? </li></ul><ul><li>What can Lean Six Sigma do? </li></ul><ul><li>How to get started </li></ul>Approved for Public Release
    3. 3. Paths to Cost Reduction <ul><li>Cut services </li></ul><ul><li>Reduce labor (lay-off) </li></ul><ul><li>Contract work out </li></ul><ul><li>Eliminate product features </li></ul><ul><li>Remove roadblocks so your employees can produce </li></ul><ul><li>Assign resources to bottlenecks </li></ul><ul><li>Maximize internal capabilities </li></ul><ul><li>Focus on what the customer wants to buy </li></ul>Approved for Public Release
    4. 4. What is Lean Six Sigma? <ul><li>Combined 2 industry concepts: </li></ul><ul><li>Lean </li></ul><ul><li>Six Sigma </li></ul><ul><li>Combines problem solving tools: </li></ul>JIT - Pull 5S Value Stream Mapping Visual Mgt. Kanban ANOVA Kaizen Setup Reduction DFSS Root Cause Analysis Hypothesis Testing DOE MSA SPC Approved for Public Release
    5. 5. Lean <ul><li>Focus on what is of VALUE to the customer </li></ul><ul><li>Separate non-value added from value added </li></ul><ul><ul><li>Map the actions required to produce (value stream) </li></ul></ul><ul><ul><li>Eliminate activities that do not move the product closer to its final form </li></ul></ul><ul><li>Make the remaining value added activities flow smoothly </li></ul><ul><li>Produce only what customers need (pull) </li></ul><ul><li>Continuous improvement </li></ul>Approved for Public Release
    6. 6. Which is the better airline ticket? <ul><li>Ticket A </li></ul><ul><li>$500 round trip </li></ul><ul><li>6 hours </li></ul><ul><li>3 layovers </li></ul><ul><li>Arriving in NYC </li></ul><ul><li>Ticket B </li></ul><ul><li>$650 round trip </li></ul><ul><li>3 hours </li></ul><ul><li>1 layover </li></ul><ul><li>Arriving in Groton/New London </li></ul>Traveling to Groton, CT What does value mean to you? Approved for Public Release
    7. 7. Lean Philosophy <ul><li>Value </li></ul><ul><ul><li>More to value than just cost </li></ul></ul><ul><ul><li>“ Defined by the ultimate customer” – Womack </li></ul></ul><ul><ul><ul><li>Voice of the Customer (VOC) </li></ul></ul></ul><ul><ul><li>Expressed in terms of </li></ul></ul><ul><ul><ul><li>A specific product </li></ul></ul></ul><ul><ul><ul><li>A function or capability </li></ul></ul></ul><ul><ul><li>Questions </li></ul></ul><ul><ul><ul><li>What does the customer want to buy? </li></ul></ul></ul><ul><ul><ul><li>What would they pay extra for? </li></ul></ul></ul>Focus on what is of VALUE to the customer Approved for Public Release
    8. 8. Types of Activities <ul><li>Value-Added </li></ul><ul><ul><li>Brings product closer to it’s final form </li></ul></ul><ul><ul><li>Changes the form, fit or function </li></ul></ul><ul><ul><li>An activity the customer is willing to pay for </li></ul></ul><ul><li>Non-Value-Added </li></ul><ul><ul><li>Does not contribute to bringing the product to it’s final form </li></ul></ul><ul><ul><li>Doesn’t improve the form, fit, or function of the product or service on the first pass through the process. </li></ul></ul><ul><ul><li>An activity the customer is not willing to pay for </li></ul></ul><ul><ul><li>Waste </li></ul></ul>Separate non value added from value added Approved for Public Release
    9. 9. 8 Types of Waste Steps are wasteful, people are valuable Approved for Public Release UNDER-UTILIZED SKILLS
    10. 10. Lean Example <ul><li>Valve Manufacturing </li></ul><ul><li>Objective: Reduce time to produce valves </li></ul><ul><li>Solution: Revise process – no temporary attachments </li></ul>“ Feet” “ Legs” Lifting Blocks Approved for Public Release (2) Tapped holes for lifting
    11. 11. Lean Example <ul><li>Certification Package </li></ul>Not Required Redundant Review Minimize Rework Approved for Public Release Mill Test Report
    12. 12. Batch versus Continuous Flow Process A Process B Process C 10 Minutes 10 Minutes 10 Minutes Batch & Queue Processing Continuous Flow Process A Process B Process C 12 Minutes for order of 10 Approved for Public Release 30+ Minutes for order of 10
    13. 13. Lean Approach Batch Dept 1 Dept 2 Dept 4 OUT 4 3 1 2 Dept 3 Continuous Flow Batch processing has a direct impact on the total Work-in-Process From: NAVSEA VSA Training Approved for Public Release OUT DONE OUT OUT IN IN IN IN DONE IN
    14. 14. Lean Approach Value-Added time is typically only a small percentage of the total time Time Broken Component Repaired Component Wait Transport Transport Wait Set-up Machine Machine Disassemble Start Finish Re-Install Remove From Ship From: NAVSEA VSA Training Approved for Public Release = Value Added Time = Non-Value-Added Time ( WASTE )
    15. 15. Lean Approach From: NAVSEA VSA Training Date / Reference / Classification Overtype with Section Title Date / Reference / Classification Overtype with Section Title Approved for Public Release Total Lead - time = 48 days Value added time = 315 secs !!!! - Total Lead time = 48 days Value added time = 315 secs !!!! -
    16. 16. Lean Approach Time <ul><li>Lean Focus </li></ul><ul><li>Make all of the Value Stream visible </li></ul><ul><li>Reduce or eliminate Non-Value-Added portions of the process </li></ul><ul><li>Result: Large time savings </li></ul><ul><li>Traditional Focus </li></ul><ul><li>Improve Value-Added work steps </li></ul><ul><li>Better tools, machines, instructions </li></ul><ul><li>Result: Small time savings </li></ul>Amount of Time Eliminated <ul><li>Time savings have a direct impact on </li></ul><ul><li>Cost • Capacity </li></ul><ul><li>Schedule • Flexibility </li></ul><ul><li>Resources • Etc. </li></ul>LARGE amount Small of time saved From: NAVSEA VSA Training Approved for Public Release
    17. 17. Continuous Flow Traditional Thinking: Batch Production—like a meandering stream with many stagnant pools, waterfalls, and eddies Doubling production rate means doubling resources Continuous Flow Thinking: Pipeline with fast-flowing product – no stops, piles, or back-ups Doubling production rate means halving the time waiting “’ Flow’ production was an even more valuable innovation of Henry Ford’s than his better-known ‘mass’ production model.” Approved for Public Release
    18. 18. How Does Lean Solve Problems? <ul><li>Focuses on what is of VALUE to the customer </li></ul><ul><ul><li>Understand customer expectations and requirements </li></ul></ul><ul><ul><li>In terms of the what the product provides, not just the product itself </li></ul></ul><ul><li>Eliminates activities that do not move the product closer to it’s final form </li></ul><ul><ul><li>Reduces the 8 types of waste </li></ul></ul><ul><li>Creates continuous flow </li></ul>Approved for Public Release
    19. 19. Six Sigma Philosophy <ul><li>Reduce variation </li></ul><ul><li>Y=f(X) </li></ul><ul><li>Making decisions based on data </li></ul>Approved for Public Release
    20. 20. What is “ Six Sigma ”? <ul><li>Change in quality philosophies </li></ul>Traditional “Goalpost” Philosophy USL LSL Loss $$ Loss $$ Anything outside the specification limits represents quality losses OK Approved for Public Release Taguchi Philosophy USL LSL Any deviation from the target causes losses to society Loss $$ Loss $$ Loss
    21. 21. How Does Six Sigma Solve Problems? Approved for Public Release Practical Problem (Define/Measure) Statistical Problem (Analyze) Practical Solution (Control) Statistical Solution (Improve)
    22. 22. Six Sigma Example <ul><li>Practical Problem </li></ul><ul><ul><li>Pass rate for Technicial Exams was declining </li></ul></ul><ul><li>Statistical Problem </li></ul><ul><ul><li>Y=f(X) </li></ul></ul><ul><ul><li>Y – Scores </li></ul></ul><ul><ul><li>X </li></ul></ul><ul><ul><ul><li>Exam section </li></ul></ul></ul><ul><ul><ul><li>Place of training </li></ul></ul></ul><ul><ul><ul><li>How often skills are used (experience) </li></ul></ul></ul><ul><ul><ul><li>Elapsed time since training </li></ul></ul></ul><ul><li>Statistical Solution </li></ul><ul><ul><li>3 sections of the exam are the highest trouble spots </li></ul></ul><ul><ul><li>Experience is the most significant factor in passing </li></ul></ul><ul><li>Practical Solution </li></ul><ul><ul><li>Focus training on 3 areas for inexperienced technicians </li></ul></ul>Approved for Public Release
    23. 23. What is “ Six Sigma ”? <ul><li>99.99966% of values are within specifications </li></ul>   USL LSL  A 6  Process       A 3  Process Approved for Public Release
    24. 24. Is “Six Sigma” Overkill? <ul><li>20,000 lost articles of mail per hour </li></ul><ul><li>15 minutes of unsafe drinking water each day </li></ul><ul><li>5,000 incorrect surgical operations per week </li></ul><ul><li>2 short or long landings at most major airports each day </li></ul><ul><li>11 hours of no electricity per month </li></ul><ul><li>7 lost articles of mail per hour </li></ul><ul><li>1 minute of unsafe drinking water per 7 months </li></ul><ul><li>1.7 incorrect surgical operations per week </li></ul><ul><li>1 short or long landing every 5 years </li></ul><ul><li>1 hour of no electricity every 34 years </li></ul>99.99966% ( 6  ) 99% ( ≈3.8  ) Approved for Public Release
    25. 25. Pipe Welding Quality <ul><li>Reduce concave & convex defects in pipe butt welds </li></ul><ul><li>Experimented on the effects of: </li></ul><ul><li>Purge pressure </li></ul><ul><li>Starting point </li></ul><ul><li>Weld segment overlap </li></ul><ul><li>Intersegment temperature </li></ul><ul><li>Welder technique </li></ul>Identified key factors to control and ones that had no effect Approved for Public Release Convex Concave
    26. 26. Effluent Discharge Approved for Public Release Frustration Cost Time to assemble Notice Required Low High Direct/Defined Overhead Days Weeks Days Months After Before
    27. 27. “Value Stream Mapping” <ul><li>Tile Material Manufacturer </li></ul><ul><li>Mapped the “value stream” </li></ul><ul><li>Identified key constraints </li></ul><ul><li>Implementing “just go do its” </li></ul><ul><li>Identified specific resources needed to support 2 ships per year </li></ul>Approved for Public Release
    28. 28. Ways To Get To Six Sigma <ul><li>Identify critical inputs & control them </li></ul><ul><li>Quantifiable management </li></ul><ul><ul><li>Measure performance </li></ul></ul><ul><ul><li>Decisions based on data </li></ul></ul>Approved for Public Release
    29. 29. Ways To Get To Six Sigma <ul><li>Type 1 Corrective Action – Countermeasure </li></ul><ul><li>Type 2 Corrective Action – Flag </li></ul><ul><li>SPC/SPM – Empowered Operators </li></ul><ul><li>Type 3 Corrective Action – Inspection </li></ul><ul><li>SPC/SPM – Operators Not Empowered </li></ul><ul><li>Standard Operating Procedure </li></ul><ul><li>Warning Signal – Used to Detect Defects </li></ul><ul><li>SPC/SPM - Wallpaper </li></ul>Best Control Methods Approved for Public Release
    30. 30. “ But we aren’t mass production” <ul><li>Look for repetition: </li></ul><ul><li>Valve manufacturing </li></ul><ul><li>Certification package review </li></ul><ul><li>Pipe welding </li></ul><ul><li>Effluent discharge </li></ul>Approved for Public Release
    31. 31. “ But we aren’t mass production” <ul><li>Product Families </li></ul><ul><ul><li>Different products that follow the same steps </li></ul></ul><ul><li>Processes </li></ul><ul><ul><li>Repetitive tasks </li></ul></ul><ul><ul><ul><li>For a product </li></ul></ul></ul><ul><ul><ul><li>For a service </li></ul></ul></ul><ul><ul><ul><li>For just normal day to day activities </li></ul></ul></ul><ul><ul><li>“ If it’s not the first time, then there is a process.” </li></ul></ul>Approved for Public Release
    32. 32. Supplier Lean Outreach Approved for Public Release
    33. 33. Why Supplier Lean Outreach ? <ul><li>Extend Lean and Six Sigma to suppliers </li></ul>Shipyard Labor 39% 30% Purchased Material 31% Government Material Block III (SSN787) Costs Approved for Public Release
    34. 34. Goal <ul><li>Conduct joint process improvement projects with VIRGINIA Class vendors to reduce defects, and cycle time via the application of Lean Six Sigma tools and techniques. </li></ul><ul><li>Create a win-win between supplier and EB </li></ul><ul><ul><li>Tangible improvement </li></ul></ul><ul><ul><li>Benefits both companies </li></ul></ul><ul><li>Funded for 2 projects/year </li></ul>Approved for Public Release
    35. 35. Methodology <ul><li>Voice of the Customer </li></ul><ul><ul><li>All customers not just purchasing </li></ul></ul><ul><li>Kick-off with Vendor </li></ul><ul><ul><li>Identify problems, issues, roadblocks </li></ul></ul><ul><li>Value Stream Analysis & Development of Improvement Plan </li></ul><ul><li>Improvement Plan Execution and Follow-on Onsites </li></ul>Approved for Public Release
    36. 36. How To Get Started “ We all tend to concentrate on taking corrective actions that we know how to take , not necessarily concentrating on the problems we should correct and the actions needed to correct (them).” - Eliyahu Goldratt Approved for Public Release
    37. 37. How To Get Started <ul><li>Involve the employees </li></ul><ul><li>Examine the detailed process with them </li></ul><ul><li>Empower them to make process changes to: </li></ul><ul><ul><li>Eliminate non-value-added steps </li></ul></ul><ul><ul><li>Keep adding value continuously without interruptions </li></ul></ul><ul><li>Ask the right questions </li></ul><ul><ul><li>What can we do to save time? </li></ul></ul><ul><ul><li>Not: What can we do to save money? </li></ul></ul><ul><li>Get to the root causes </li></ul><ul><ul><li>5-Whys, etc. </li></ul></ul>Approved for Public Release
    38. 38. How To Get Started <ul><li>Reduce work in process (WIP): </li></ul>WIP = Waiting = Longer lead times Delayed sales Increased expenses = Less Profit! Approved for Public Release
    39. 39. How To Get Started <ul><li>Books to read: </li></ul><ul><li>Lean Thinking . Womack & Jones </li></ul><ul><li>Lean Six Sigma: Combining Six Sigma Quality With Lean Speed. M. L. George </li></ul><ul><li>Theory of Constraints. Goldratt </li></ul><ul><li>The Goal. Goldratt </li></ul>Approved for Public Release
    40. 40. How To Get Started <ul><li>Communicate with Electric Boat </li></ul><ul><li>Things you are doing </li></ul><ul><li>Ask for clarification on our needs </li></ul><ul><ul><li>Voice of the Customer </li></ul></ul>Approved for Public Release
    41. 41. Wrap - Up <ul><li>What is Lean Six Sigma? </li></ul><ul><li>What can Lean Six Sigma do? </li></ul><ul><li>How to get started </li></ul>Approved for Public Release
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