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Implementing Structures and Processes for                                                 Lean Six Sigma                  ...
Purpose & OutlineDiscuss application of Lean principles to Six Sigma inProduct Development (DMAIC and DFSS) Align projects...
Lean and Six Sigma    Lean         The elimination of waste with the goal that all steps in a         process add value fr...
Lean Thinking (Womack & Jones)    Correctly specify value so you are providing what the    customer actually wants    Iden...
Project Value    Basic product of Six Sigma is a project    Lean Principle: “Correctly specify value so [projects]    prov...
Assigning Project Value    A project is worth doing if         It saves the end customer money               Directly: red...
Pull Systems    Lean Principle: “Allow customer to pull value    from rapid-response value streams as needed”    “Pull” in...
Example: Pull in a Manufacturing Process    A light bulb is set up on a pole at an assembly line;    when the light goes o...
Filling the DMAIC Project PipelineFor projects related to Defect Elimination,pull comes from… Repair/Service Data         ...
Recently In the News    “When ____ arrived six months ago, he found ____s quality    operations bogged down with drawn-out...
Example    “Every warranty claim received by a dealer is sent to    the plant where the vehicle is built and the issue is ...
Reaction to Field Concerns is just the Beginning    Even better than reacting quickly when (1) customers    discover failu...
Lessons from High Reliability Organizations                                                                               ...
Defect Creation    Failures result from product or process defects    (Defect: “an imperfection that impairs worth or util...
Example    The I-35W Mississippi River bridge    catastrophically failed during the    evening rush hour on August 1,    2...
“Although the Boards investigation is still on- going and no determination of probable cause has been reached, interim fin...
“The… bridge was brought down by too much weight from construction materials and pavement added to the roadway years befor...
Waste Due to Defects    A defect created at a certain point in the development    process cannot be fixed without revisiti...
Filling the DFSS Project PipelineFor projects related to Defect Detection& Mitigation, pull comes from… Process Health Ind...
Filling the DFSS Project PipelineFor projects related to Defect Prevention& Business Opportunity, pull comes from… History...
Example                                          Hirokazu Shimizu, Toshiyuki                                              ...
Example    Design Review Based on Failure Mode         “Pay close attention to intentional and incidental changes in      ...
Sources of Project Pull: Summary         Chronic Repair/Service Issues           Proactive         Chronic Survey Gaps    ...
Product Development Error Proofing    Projects react to the identification of defects    The final step in any project mus...
Final Observations on Project Scoping    Proper scope reduces waste & re-work    Originally, we planned DFSS projects to t...
Benefits of Focus    Situation: A black belt is requested to split time    between two “equally important” DFSS projects  ...
Example Deliverable Scopes for DFSS Projects    Increase Detection                               Move Detection         Ma...
REFERENCES    Tim P. Davis, “Science, engineering, and statistics,” Applied    Stochastic Models in Business and Industry,...
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Implementing Structures and Processes for Lean Six Sigma in Product Development

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Transcript of "Implementing Structures and Processes for Lean Six Sigma in Product Development"

  1. 1. Implementing Structures and Processes for Lean Six Sigma in Product Development Dr. Nathan Soderborg Design for Six Sigma Master Black Belt North America Product Development Ford Motor Company WCBF Global Lean, Six Sigma and Business Improvement Summit Orlando, Florida October 15, 2008© Nathan Soderborg, 2008. All rights reserved.
  2. 2. Purpose & OutlineDiscuss application of Lean principles to Six Sigma inProduct Development (DMAIC and DFSS) Align projects with customer value Increase project throughput Root out waste in decision making & scoping Generate more profound and lasting benefitsTopics Avoid pitfalls in assigning project value Institute “pull” systems for filling the project pipeline Error Proof—prevent defects before they are created Scope wisely—segment large projects into sub- projects 2© Nathan Soderborg, 2008. All rights reserved.
  3. 3. Lean and Six Sigma Lean The elimination of waste with the goal that all steps in a process add value from the customer’s perspective Six Sigma A statistics-based, data-driven, problem solving methodology DMAIC: Define, Measure, Analyze, Improve, Control, focuses on finding and fixing existing defects in products and processes DFSS is a product development (PD) approach that complements DMAIC, focusing on Innovation to satisfy customers and improve profitability Discovering and preventing defects before they occur in products or processes 3© Nathan Soderborg, 2008. All rights reserved.
  4. 4. Lean Thinking (Womack & Jones) Correctly specify value so you are providing what the customer actually wants Identify the value stream for each product family and remove the wasted steps that dont create value but do create muda (waste) Make the remaining value-creating steps flow continuously to drastically shorten throughput times Allow the customer to pull value from your rapid- response value streams as needed (rather than pushing products toward the customer on the basis of forecasts) Never relax until you reach perfection, which is the delivery of pure value instantaneously with zero muda 4© Nathan Soderborg, 2008. All rights reserved.
  5. 5. Project Value Basic product of Six Sigma is a project Lean Principle: “Correctly specify value so [projects] provide what the customer actually wants” What does the customer want? Typical answer: Defect free products Ability to perform the intended function or use Performance better than competition in attributes that matter Features that satisfy, even enthuse or excite Answer focused on value: Experience and characteristics that relieve cost from the customer Performance and features for which the customer is willing to pay 5© Nathan Soderborg, 2008. All rights reserved.
  6. 6. Assigning Project Value A project is worth doing if It saves the end customer money Directly: reduced repair bills, service costs, etc. Indirectly: time & effort, product marketing/warranty costs that get passed back It leads to performance or features for which the customer will pay (extra) Set a standard prioritization scheme and get on with it If possible, use existing accounting techniques for projects that cut costs or will generate revenue For projects that prevent future costs Assign relative weights to different customer issues based on experience Work on issues with high weights and high likelihood of occurrence Avoid the waste of instituting complex project value calculations and involving multiple layers of the finance department Debating value does not add value 6© Nathan Soderborg, 2008. All rights reserved.
  7. 7. Pull Systems Lean Principle: “Allow customer to pull value from rapid-response value streams as needed” “Pull” in lean production means to produce or process an item only when the customer needs and requests it Lean manufacturers design their operations to respond to the ever-changing requirements of customers Such operations avoid the traditional batch-and-queue system many manufacturers must rely on Pull systems Should be convenient and easy to use React to needs—dont anticipate them 7© Nathan Soderborg, 2008. All rights reserved.
  8. 8. Example: Pull in a Manufacturing Process A light bulb is set up on a pole at an assembly line; when the light goes on, it is the signal (kanban) to the producing station to wheel over a cart of components to the assembly line A full cart is dropped off at the assembly line and an empty cart is wheeled back to the producing station—the empty cart is the signal that authorizes the producers to make more parts Finished components from the last operation at the producing station are placed directly on the cart—if there is no cart there is no production The process eliminates double handling Parts are placed on the cart as produced Parts are taken off the cart during the first operation at the assembly line and put directly into an assembly 8© Nathan Soderborg, 2008. All rights reserved.
  9. 9. Filling the DMAIC Project PipelineFor projects related to Defect Elimination,pull comes from… Repair/Service Data Where are customers In plant repairs (surrogate for customers) experiencing problems right now? Warranty claims (sellers & customers) Survey Data What are customers Customer satisfaction complaining about Complaints: “Things Gone Wrong” right now? Prioritize on data from first few weeks or months of ownership— often correlates well to data from higher time in service 9© Nathan Soderborg, 2008. All rights reserved.
  10. 10. Recently In the News “When ____ arrived six months ago, he found ____s quality operations bogged down with drawn-out decision making and interdepartmental finger-pointing. “If there was a problem with an air conditioning system, for example, the engineering department might suggest the plant didnt put oil in the unit, while the plant might say the unit was improperly designed. Weeks of back- and-forth e-mails would ensue, "and meanwhile, the customer is out there saying, Im hot,‚" ____ said. “____ scrapped the old system, created standard definitions of quality, and established the view that customer satisfaction starts with a potential customers perception of a brand and continues though vehicle ownership and repurchase. “He launched dedicated interdepartmental teams to address problems in minutes over conference tables, not weeks over e-mail.” Detroit News, April 14, 2008 10© Nathan Soderborg, 2008. All rights reserved.
  11. 11. Example “Every warranty claim received by a dealer is sent to the plant where the vehicle is built and the issue is ‘mapped back’ to the work station where it might have originated.” Ford’s Drive One campaign, answers for employees to FAQs related to Quality Customer Pull Project Portfolio Customer Dealer fixes Information is Plant groups Issues with brings vehicle issues and sent to plant issues and highest to dealer for records immediately for shares with frequency are service information review engineering next up projects 11© Nathan Soderborg, 2008. All rights reserved.
  12. 12. Reaction to Field Concerns is just the Beginning Even better than reacting quickly when (1) customers discover failures, is to react quickly to (2) failures discovered in development Find them before they escape (ideally as soon after creation as feasible) Immediately mitigate their effect (on customer and the organization) Even better than reacting quickly to failures discovered in development is to (3) prevent creation of the defect that leads to failure in the first place Because no process or person is perfect, we need to plan for and address all three scenarios 12© Nathan Soderborg, 2008. All rights reserved.
  13. 13. Lessons from High Reliability Organizations Karl Weick & Kathleen Sutcliffe “HROs” exhibit Managing the Unexpected: Assuring High Performance In an Age of Complexity, John Wiley & Sons, 2001 Preoccupation with failure Reluctance to simplify interpretations Sensitivity to operations Commitment to resilience Deference to expertise “…high reliability organizations are preoccupied with small, emerging, early failures aka problems (failures in the sense of things not working out exactly as expected). They see those small failures as clues that the system is not as healthy as they thought it was. Those early small failures are also easier to deal with than are full blown failures. And HROs spend a great deal of time and effort to catch stuff while it is still small.” “Revisiting Mindfulness, Managing the Unexpected, and the Cerro Grande Staff Ride” http://www.myfirecommunity.net/documents/Santa_Fe_post_conference_reflections_kms.pdf 13© Nathan Soderborg, 2008. All rights reserved.
  14. 14. Defect Creation Failures result from product or process defects (Defect: “an imperfection that impairs worth or utility;” for our purposes, can include gaps to competition or company targets) Defects are not created at the moment the product is manufactured or the process is instituted—they are created much earlier, during development For example Wrong identification of requirements important to customer, wrong targets Incorrect assessment of environmental, usage, manufacturing conditions Selection of an inadequate or non-robust design concept Incorrect characterization of the system, e.g., use of an inaccurate model Improper optimization assumptions or methods Selection of inadequate materials, geometry, interfaces Mistakes in execution of design or build Using detection events that can’t detect defects, ETC. 14© Nathan Soderborg, 2008. All rights reserved.
  15. 15. Example The I-35W Mississippi River bridge catastrophically failed during the evening rush hour on August 1, 2007, collapsing to the river and riverbanks beneath. Thirteen people were killed and approximately one hundred more were injured. The defect that led to the collapse was not created when the bridge was built. When was it created? 15© Nathan Soderborg, 2008. All rights reserved.
  16. 16. “Although the Boards investigation is still on- going and no determination of probable cause has been reached, interim findings in the investigation have revealed a safety issue that warrants attention," said NTSB Chairman Mark V. Rosenker. … http://minnesota.publicradio.org/display/ web/2008/06/03/astaneh_bridgecollapse “This review discovered that the original design process of the I-35W bridge led to a serious error in sizing some of the gusset plates in the main truss. NTSB URGES BRIDGE OWNERS TO PERFORM “Undersized gusset plates were found at 8 of the LOAD CAPACITY CALCULATIONS BEFORE 112 nodes (joints) on the main trusses of the bridge. MODIFICATIONS; I-35W These 16 gusset plates (2 at each node) were INVESTIGATION roughly half the thickness required and too thin to CONTINUES; Jan 15, 2008, http://www.ntsb.gov/Pressrel/20 provide the margin of safety expected in a properly 08/080115.html designed bridge.” 16© Nathan Soderborg, 2008. All rights reserved.
  17. 17. “The… bridge was brought down by too much weight from construction materials and pavement added to the roadway years before, a structural engineering expert reports in a paper delivered today… Hassan Astanehs research concludes MnDOT and the consulting firm it hired could have prevented the collapse.”… “In January the National Transportation Safety Board reported the bridges gusset plate at node U10 was undersized. Last August, Astanehs research found the same thing. But Astaneh says despite this design flaw, the plate would have held up if it werent for the extra weight.” --“Study: Heavy construction materials, added pavement brought down 35W bridge,” by Sea Stachura, Minnesota Public Radio, June 4, 2008, http://minnesota.publicradio.org/display/web/2008/06/03/astaneh_bridgecollapse/ Apparently the defect was created in two parts: first, in the analysis and decision making process during design; second, with the later modification to the bridge Nevertheless, the defect could have been detected prior to the collapse by engineering analysis and calculation 17© Nathan Soderborg, 2008. All rights reserved.
  18. 18. Waste Due to Defects A defect created at a certain point in the development process cannot be fixed without revisiting that point in the process Work completed after the defect is created is subject to be re-done or at least re-evaluated: WASTE The further downstream the defect is detected, the more re-work is required to mitigate it When the customer detects the defect, there is not only re-work needed to fix it, but potentially severe implications for corporate image, customer satisfaction, sales, profits, etc. 18© Nathan Soderborg, 2008. All rights reserved.
  19. 19. Filling the DFSS Project PipelineFor projects related to Defect Detection& Mitigation, pull comes from… Process Health Indicators Where are resources Launch Concerns being spent now? First time through and re-work metrics Number of part changes during development Results of Detection Events Where are the Checks against Design Standards emerging problems? Computer Simulations (Things we know we know) Physical Tests 19© Nathan Soderborg, 2008. All rights reserved.
  20. 20. Filling the DFSS Project PipelineFor projects related to Defect Prevention& Business Opportunity, pull comes from… History What area or discipline Sustained high warranty costs have we not yet Chronic gaps to competition in mastered? survey results (e.g., JD Power) (Things we know we don’t know) Launch concern trends Part change trends Design Review Discoveries What concerns are Defect Anticipation Identification revealed after thorough (e.g., using structured tools review? such as FMEA, FTA) (Things we don’t know we don’t know) Risk Analysis “Pull systems react to needs, dont anticipate them.” If capability won’t meet demand, the defect already© Nathan Soderborg, 2008. All rights reserved. exists. Identify it and react. 20
  21. 21. Example Hirokazu Shimizu, Toshiyuki Imagawa, Hiroshi NoguchiToyota’s GD3 and Design Review Reliability Problem Prevention Method for Automotive Components, SAE 2003-01-2877Based on Failure Mode (DRBFM) Good Design “A fundamental principle for reliability is to avoid changing the conditions of a good design.” Good Discussion/Good Design Review “We implemented Good Design Reviews in the development process as a creative “breakthrough”… This breakthrough emphasizes discovery of undetected problems caused by intentional or incidental changes. Good Design Review is a process of thoroughly discussing design plans to discover undetected problems (Good Discussion), and of formulating countermeasures to solve those problems one by one.” 21© Nathan Soderborg, 2008. All rights reserved.
  22. 22. Example Design Review Based on Failure Mode “Pay close attention to intentional and incidental changes in new development items.” “Promote discussions based on FMEA and FTA results.”Reliability Problem Prevention Method for Automotive Components—Development of GD3 Activityand DRBFM (Design Review Based on Failure Mode), JSAE 20037158, SAE 2003-01-2877 22© Nathan Soderborg, 2008. All rights reserved.
  23. 23. Sources of Project Pull: Summary Chronic Repair/Service Issues Proactive Chronic Survey Gaps DFSS Design Review Discoveries Defect Detection Events Process Health Indicators Current Survey Data DMAIC Current Repair/Service Data ReactiveFrom the Lean perspective: Proactive is ReactiveReacting to the right things is how to be proactive 23© Nathan Soderborg, 2008. All rights reserved.
  24. 24. Product Development Error Proofing Projects react to the identification of defects The final step in any project must be implementing permanent corrective actions, determining… How, in the future, we will operate differently and in a standardized way What structures (controls) have been put in place to ensure this will continue to happen Examples of Design Error Proofing (SOPs) Established design guidelines (don’t reinvent good design practices) Better methods for detecting defects earlier (including simulation and component testing) More robust design concepts and solutions Never close a project without institutionalizing the learning 24© Nathan Soderborg, 2008. All rights reserved.
  25. 25. Final Observations on Project Scoping Proper scope reduces waste & re-work Originally, we planned DFSS projects to take a system through the entire PD process (months to years) Projects needed adjustment with movement of key people Hard to maintain focus over many months Changes in direction at higher levels negate previous work Subdivide big projects Multiple small projects, each focused on eliminating a single defect or few related defects Projects for each phase of the development process (e.g. Definition, Characterization, Optimization, Verification)—as we know different types of defects arise in each phase Let the most current circumstances “pull” scope 25© Nathan Soderborg, 2008. All rights reserved.
  26. 26. Benefits of Focus Situation: A black belt is requested to split time between two “equally important” DFSS projects Scenario 1: The black belt works on them simultaneously and completes both in 6 months Scenario 2: The black belt focuses entirely on one project for 3 months and completes it, then works on and completes the second project in 3 months Is one scenario better? Scenario 1: neither project is finished for 6 months; average time to complete projects=6 months Scenario 2: one project is finished in 3 months; one in six months; average time to completion=4.5 months 26© Nathan Soderborg, 2008. All rights reserved.
  27. 27. Example Deliverable Scopes for DFSS Projects Increase Detection Move Detection Make Designs More Capability Capability Earlier Reliable/Robust Develop/improve a Move a detection event Implement a new, robust customer-correlated from a system to concept metric, target subsystem or component Institute product-specific Create a new detection level design improvements, event or standard Replace a hardware test e.g., optimize for Develop/improve a by a virtual simulation robustness transfer function (model) Institute generic robust to discover failure modes Replace a test or design guidelines analytically simulation event with a design standard Institute updated Add/intensify noise procedures and error- content in a test or proofing to prevent simulation to better excite mistakes failure modes Improve design to reduce Improve detection severity of a failure mode measurement system/gage RR Institute technical training 27© Nathan Soderborg, 2008. All rights reserved.
  28. 28. REFERENCES Tim P. Davis, “Science, engineering, and statistics,” Applied Stochastic Models in Business and Industry, Vol. 22, Issue 5-6, pp401-430, 2006. James M. Morgan and Jeffrey K. Liker, The Toyota Product Development System: Integrating People, Process and Technology, Productivity Press, 2006. James P. Womack and Daniel T. Jones, Lean Thinking: Banish Waste and Create Wealth in Your Corporation, Simon and Schuster, 2003. Standing bridge photo from Wikipedia: Permission is granted to copy, distribute and/or modify this document under the terms of the GNU Free Documentation License, Version 1.2 or any later version published by the Free Software Foundation Collapsed bridge photo from Wikipedia: This image or file is a work of a United States Coast Guard service personnel or employee, taken or made during the course of that persons official duties. As a work of the U.S. federal government, the image or file is in the public domain (17 U.S.C. § 101 and § 105). 28© Nathan Soderborg, 2008. All rights reserved.
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