LeanSigma Strategy  Key Driver for Continued Cultural Change and Enhanced Performance Tedd C. Simmons, Ph.D. VP, LeanSigma...
Beginning the Lean Journey Lean I
<ul><li>Demand Triggers </li></ul><ul><li>Continuous Flow </li></ul><ul><li>Visual Control </li></ul><ul><li>5S Techniques...
Starting Lean <ul><li>Initial Introduction </li></ul><ul><ul><li>Guest Speaker at Plant Managers Meeting (Oct 99) </li></u...
Introducing Lean to Operations <ul><li>Phase 1  Lean Manufacturing Initiative </li></ul><ul><ul><li>Management Overview (3...
Lean I - Rollout Continuation <ul><ul><li>2000: </li></ul></ul><ul><ul><li>2500 North American Operations associates train...
Expanding the Lean Journey Lean II
Purposes of Lean II <ul><li>Leverage successes </li></ul><ul><li>Improve focus on purposeful projects </li></ul><ul><ul><l...
Purposes of Lean II <ul><li>Better understand the manufacturing strategy </li></ul><ul><ul><li>Stage 4 Manufacturing Excel...
Purposes of Lean II <ul><li>Looking for “Jonah’s” </li></ul><ul><ul><li>Learn lessons well </li></ul></ul><ul><ul><li>Appl...
Expanding the Lean Journey Six Sigma
<ul><li>Process Capability </li></ul><ul><ul><li>CP / CPK </li></ul></ul><ul><li>Box Plots </li></ul><ul><li>Factorial Ana...
Six Sigma Tools Added - 2002 Basic Lean tools eliminate unnecessary processes…but additional tools were required to radica...
<ul><ul><li>6 Sigma/process variation tools added to the Lean toolbox </li></ul></ul><ul><ul><ul><li>DMAIC process is the ...
Why LeanSigma? It’s time now to put the Process Control into OLPC! <ul><li>Doesn’t make sense to increase velocity of unne...
Initiative Timeline 2001 2000 1999 2003 2004 2005 Introduction  of Lean Tools Asia Pacific Six Sigma Tools Added Second Eu...
Transforming the Way We Work
Our LeanSigma Culture  <ul><li>Critical levers </li></ul><ul><ul><li>Common Language </li></ul></ul><ul><ul><li>Consistent...
The Culture: Operator-Led Process Control <ul><li>Hourly Associates… </li></ul><ul><ul><li>Involved and take accountabilit...
OLPC
Understanding Stage 4 Manufacturing Excellence <ul><li>Stage 1 Minimize manufacturing’s negative potential:  “internally n...
The Path: Excellence built on the 12 Manufacturing Principles... which are enabled with Lean tools... applied with purpose...
OLPC Environment - what does the shop floor look like?
Manufacturing  Principles <ul><li>1.) Safety </li></ul><ul><li>2.) Housekeeping </li></ul><ul><li>3.) Manufacturing System...
LeanSigma Leadership Black Belt
The Mentoring Process <ul><li>BB Goal  – Support the ongoing development of LeanSigma Leaders   </li></ul><ul><ul><ul><li>...
LeanSigma Leadership LeanSigma Council
Plant LeanSigma Council <ul><li>Champion – “Driver” </li></ul><ul><ul><li>Conduct monthly LeanSigma Council meeting </li><...
LeanSigma Council (Structure to How Council Work) 3 Bold Objectives Theoretical Universe of Opportunity Key Business Objec...
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Lean Sigma Strategy Key Driver for Continued Cultural Change and Enhanced Performance

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Lean Sigma Strategy Key Driver for Continued Cultural Change and Enhanced Performance

  1. 1. LeanSigma Strategy Key Driver for Continued Cultural Change and Enhanced Performance Tedd C. Simmons, Ph.D. VP, LeanSigma and Chief Learning Officer
  2. 2. Beginning the Lean Journey Lean I
  3. 3. <ul><li>Demand Triggers </li></ul><ul><li>Continuous Flow </li></ul><ul><li>Visual Control </li></ul><ul><li>5S Techniques </li></ul><ul><li>Pull Systems </li></ul><ul><li>Kanban Signals </li></ul><ul><li>Kaizen - Continuous Improvement </li></ul><ul><li>TAKT Time </li></ul><ul><li>Theory Of Constraints </li></ul><ul><li>Single Piece Flow </li></ul><ul><li>Setup Reduction </li></ul><ul><li>TPM </li></ul><ul><li>Mistake Proofing - Poka Yoke </li></ul><ul><li>Cellularization </li></ul><ul><li>Problem Solving Methods </li></ul><ul><li>Process / Value Stream Mapping </li></ul>Introducing the basic lean tools
  4. 4. Starting Lean <ul><li>Initial Introduction </li></ul><ul><ul><li>Guest Speaker at Plant Managers Meeting (Oct 99) </li></ul></ul><ul><ul><li>10 Participants in the Lean Mfg. Leadership Institute (Univ. of KY) (Nov 99) </li></ul></ul><ul><ul><li>15 Participants in the Lean Mfg.. Trainer Certification Program (Nov 99) </li></ul></ul><ul><ul><ul><li>Altoona </li></ul></ul></ul><ul><ul><ul><li>Cass City </li></ul></ul></ul><ul><ul><ul><li>Jackson </li></ul></ul></ul><ul><ul><ul><li>Lawrenceburg </li></ul></ul></ul><ul><ul><ul><li>Monticello </li></ul></ul></ul><ul><ul><ul><li>Montoursville </li></ul></ul></ul><ul><ul><ul><li>Piedras Negras </li></ul></ul></ul><ul><li>Pilot Programs </li></ul><ul><ul><li>Altoona - had done numerous Kaizen sessions and plant reorganization </li></ul></ul><ul><ul><li>Montoursville - test site for the 4-day implementation (Jan ‘00) </li></ul></ul>
  5. 5. Introducing Lean to Operations <ul><li>Phase 1 Lean Manufacturing Initiative </li></ul><ul><ul><li>Management Overview (3 Days) </li></ul></ul><ul><ul><li>Facilitator Training (2 Days) </li></ul></ul><ul><li>Phase 2 Plant Roll-outs </li></ul><ul><ul><li>Beta Site </li></ul></ul><ul><ul><li>Plant Roll-out Schedule </li></ul></ul><ul><li>Phase 3 Continuous Implementation </li></ul><ul><ul><li>Additional Lean Training </li></ul></ul><ul><ul><li>Tools Training </li></ul></ul><ul><ul><li>Functional and Business Team Involvement </li></ul></ul>
  6. 6. Lean I - Rollout Continuation <ul><ul><li>2000: </li></ul></ul><ul><ul><li>2500 North American Operations associates trained </li></ul></ul><ul><ul><li>Delivered 8 sessions at HH to “Train the Trainer” </li></ul></ul><ul><ul><li>Facilitators in turn delivered 152 rollouts at the plants </li></ul></ul><ul><ul><li>2001: </li></ul></ul><ul><ul><li>Goal is 100% of Operations associates exposed to Lean rollout </li></ul></ul><ul><ul><li>Goal all facilities complete – All operations associates trained </li></ul></ul>
  7. 7. Expanding the Lean Journey Lean II
  8. 8. Purposes of Lean II <ul><li>Leverage successes </li></ul><ul><li>Improve focus on purposeful projects </li></ul><ul><ul><li>Data driven </li></ul></ul><ul><ul><li>More top down </li></ul></ul><ul><ul><li>Impact the business NOW e.g. </li></ul></ul><ul><ul><ul><li>Reduce scrap </li></ul></ul></ul><ul><ul><ul><li>Reduce rejections/improve first pass yield </li></ul></ul></ul><ul><ul><ul><li>Improve OEE </li></ul></ul></ul><ul><ul><ul><li>Improve usage control </li></ul></ul></ul><ul><ul><ul><li>Reduce indirect labor </li></ul></ul></ul><ul><li>Increase Lean skillset </li></ul>
  9. 9. Purposes of Lean II <ul><li>Better understand the manufacturing strategy </li></ul><ul><ul><li>Stage 4 Manufacturing Excellence </li></ul></ul><ul><ul><li>In an OLPC environment </li></ul></ul><ul><ul><li>Cellularization as a primary means </li></ul></ul><ul><li>Tie to specific plant / business team objectives </li></ul>
  10. 10. Purposes of Lean II <ul><li>Looking for “Jonah’s” </li></ul><ul><ul><li>Learn lessons well </li></ul></ul><ul><ul><li>Apply with high energy </li></ul></ul><ul><ul><li>Teach with enthusiasm </li></ul></ul><ul><ul><li>Implement with urgency </li></ul></ul>
  11. 11. Expanding the Lean Journey Six Sigma
  12. 12. <ul><li>Process Capability </li></ul><ul><ul><li>CP / CPK </li></ul></ul><ul><li>Box Plots </li></ul><ul><li>Factorial Analysis </li></ul><ul><li>ANOM </li></ul><ul><li>ANOVA </li></ul><ul><li>FMEA </li></ul><ul><li>Histograms </li></ul><ul><li>Taguchi </li></ul><ul><li>Voice of the Customer </li></ul><ul><li>Quality Function Deployment </li></ul><ul><ul><li>House of Quality </li></ul></ul><ul><li>Measurement System Analysis </li></ul><ul><ul><li>Gage R&R </li></ul></ul><ul><li>Five Points of View </li></ul><ul><li>Trend Analysis </li></ul><ul><li>Hypothesis Testing </li></ul><ul><ul><li>t and Z tests </li></ul></ul><ul><li>Correlation Analysis </li></ul><ul><li>Shewhart Charts </li></ul><ul><li>Design of Experiments </li></ul><ul><li>Cause & Effect Matrices </li></ul><ul><li>Interaction Charts </li></ul>Lean Tools Process Variability Six Sigma Tools
  13. 13. Six Sigma Tools Added - 2002 Basic Lean tools eliminate unnecessary processes…but additional tools were required to radically improve reliability of the remaining value add processes The Toolset <ul><ul><li>Six Sigma training launched April, 2002 </li></ul></ul><ul><ul><li>LeanSigma has delivered: </li></ul></ul><ul><ul><ul><li>Total training costs $1.07 Million </li></ul></ul></ul><ul><ul><ul><li>Total Savings over $12 Million for the initial projects </li></ul></ul></ul>
  14. 14. <ul><ul><li>6 Sigma/process variation tools added to the Lean toolbox </li></ul></ul><ul><ul><ul><li>DMAIC process is the approved framework to be used - ALWAYS! </li></ul></ul></ul>Begin use of the term LeanSigma <ul><ul><li>Drive radical improvement through… </li></ul></ul><ul><ul><ul><ul><ul><li>Focus on eliminating costs of poor quality </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>High energy and commitment </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Use of full toolset </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Use of Lean Teams </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Data driven problem elimination </li></ul></ul></ul></ul></ul>20
  15. 15. Why LeanSigma? It’s time now to put the Process Control into OLPC! <ul><li>Doesn’t make sense to increase velocity of unnecessary or unreliable processes </li></ul><ul><li>Doesn’t make sense to drive six sigma process control on unnecessary processes </li></ul><ul><li>Eliminating causes of delays / STOPS on the shop floor is critical to Lean Thinking… </li></ul><ul><li>And requires additional tools </li></ul>
  16. 16. Initiative Timeline 2001 2000 1999 2003 2004 2005 Introduction of Lean Tools Asia Pacific Six Sigma Tools Added Second Europe Benchmarking trip to US North America Benchmarking trip to Europe LeanSigma e-Learning Launched First Europe Benchmarking to US Green Belt Training Launched in Asia Pacific Introduction of Lean Tools Europe Lean II Cells Lean I begins in Asia PAcific Lean I Rollout 2002 First NA Black Belts Certified First NA Green Belt Certified
  17. 17. Transforming the Way We Work
  18. 18. Our LeanSigma Culture <ul><li>Critical levers </li></ul><ul><ul><li>Common Language </li></ul></ul><ul><ul><li>Consistent Metrics </li></ul></ul><ul><ul><li>Committed Leadership </li></ul></ul><ul><ul><li>Certified Black Belts </li></ul></ul><ul><ul><li>Certified Green Belts </li></ul></ul><ul><ul><li>Actively use DMAIC Process </li></ul></ul><ul><li>LeanSigma Business Focus </li></ul><ul><ul><li>Simplification of internal processes </li></ul></ul><ul><ul><li>Radically improve productivity </li></ul></ul><ul><ul><li>Proactive and systematically solve problems </li></ul></ul><ul><ul><li>Excellence in customer satisfaction </li></ul></ul><ul><ul><li>Positively Impact the entire value stream including </li></ul></ul><ul><ul><li>suppliers and customers </li></ul></ul><ul><li>LeanSigma Culture </li></ul><ul><ul><li>Priority focus on the customer </li></ul></ul><ul><ul><li>Take pride in your work </li></ul></ul><ul><ul><li>Exhibit ethical behavior at all times </li></ul></ul><ul><ul><li>Always look for safer and better ways </li></ul></ul><ul><ul><li>Be a good steward of company assets </li></ul></ul><ul><li>LeanSigma culture begins with how we treat each other --- </li></ul><ul><ul><ul><li>mutual respect </li></ul></ul></ul><ul><ul><ul><li>OLPC </li></ul></ul></ul><ul><ul><ul><li>Collaborative Problem Solving </li></ul></ul></ul><ul><ul><ul><li>shared success </li></ul></ul></ul><ul><li>--- and manifests itself in what our customers experience, our customer being... </li></ul><ul><ul><ul><li>Fellow associates </li></ul></ul></ul><ul><ul><ul><li>End users </li></ul></ul></ul><ul><ul><ul><li>Shareholders </li></ul></ul></ul>
  19. 19. The Culture: Operator-Led Process Control <ul><li>Hourly Associates… </li></ul><ul><ul><li>Involved and take accountability for their work </li></ul></ul>All salaried and indirect labor associates understand their role is to support the direct labor operator! <ul><ul><li>Fewer supervisors who coach and facilitate </li></ul></ul><ul><ul><li>Quality at the source </li></ul></ul><ul><ul><li>Work in teams, mostly self-directed </li></ul></ul><ul><ul><li>Are proactive and data-driven problem solvers </li></ul></ul>
  20. 20. OLPC
  21. 21. Understanding Stage 4 Manufacturing Excellence <ul><li>Stage 1 Minimize manufacturing’s negative potential: “internally neutral” </li></ul><ul><li>Stage 2 Achieve parity with competitors: “externally neutral” </li></ul><ul><li>Stage 3 Provide credible support to the business strategy: “internally supportive” </li></ul><ul><li>Stage 4 Pursue a manufacturing-based competitive advantage : “externally supportive” </li></ul>
  22. 22. The Path: Excellence built on the 12 Manufacturing Principles... which are enabled with Lean tools... applied with purpose and with urgency.
  23. 23. OLPC Environment - what does the shop floor look like?
  24. 24. Manufacturing Principles <ul><li>1.) Safety </li></ul><ul><li>2.) Housekeeping </li></ul><ul><li>3.) Manufacturing Systems </li></ul><ul><li>4.) Preventive Maintenance </li></ul><ul><li>5.) Process Capability </li></ul><ul><li>6.) Product Quality </li></ul>7.) Delivery Performance 8.) Visual Management 9.) Productivity 10.) Communications 11.) Training
  25. 25. LeanSigma Leadership Black Belt
  26. 26. The Mentoring Process <ul><li>BB Goal – Support the ongoing development of LeanSigma Leaders </li></ul><ul><ul><ul><li>Define development needs </li></ul></ul></ul><ul><ul><ul><li>Measure establish critical criteria </li></ul></ul></ul><ul><ul><ul><li>Analyze development progress </li></ul></ul></ul><ul><ul><ul><li>Implement mentoring process regularly </li></ul></ul></ul><ul><ul><ul><li>Control skills learned </li></ul></ul></ul>Better Trained LeanSigma Leaders
  27. 27. LeanSigma Leadership LeanSigma Council
  28. 28. Plant LeanSigma Council <ul><li>Champion – “Driver” </li></ul><ul><ul><li>Conduct monthly LeanSigma Council meeting </li></ul></ul><ul><ul><li>Assign designated, Certified Blackbelt(s) to Council </li></ul></ul><ul><ul><li>Assign Designated Council Contact to AME/Master Blackbelt(s) </li></ul></ul><ul><li>Blackbelt – “Engine” </li></ul><ul><ul><li>Manage Projects </li></ul></ul><ul><ul><li>Mentor Blackbelt Candidates & Greenbelts </li></ul></ul><ul><ul><li>Communicate with AME/Master Blackbelt(s) </li></ul></ul><ul><li>Greenbelt – “Drive-Train” </li></ul><ul><ul><li>Support BB’s and Lead Projects </li></ul></ul>TAKE OWNERSHIP!
  29. 29. LeanSigma Council (Structure to How Council Work) 3 Bold Objectives Theoretical Universe of Opportunity Key Business Objectives Proficiency Database to Match Resources BB’s, GB’s and Engineering Staff Projects Track Progress DMAIC & Using Tools Expect Results Provide Support Eliminate Roadblocks DRIVE PROJECTS TO COMPLETION!
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