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Optimizing the Use of Lean and Six Sigma Tools   <ul><li>March 4, 2005 </li></ul>
UnitedHealth Group Mission and Values <ul><li>UnitedHealth Group is a diversified health and well-being company dedicated ...
A Comprehensive Approach UnitedHealth Group serves the entire spectrum of health care participants: individual consumers, ...
Specialized Care Services Overview <ul><li>Specialized Care Services   is a portfolio of businesses that offers a diverse ...
An Organized Portfolio Serving Distinct Markets Complementary customer needs, distribution channels, and operating assets ...
Just Right Service: Timeline The Way  We Do  Business  Launch  Vision into  Action  Executing w/ Discipline  and Urgency  ...
Just Right Service: Looking Back Launch  Vision into  Action  Executing w/ Discipline  and Urgency  2002 2003 2004 Process...
Selected DMAIC Project Overviews Created a common platform by which all sites can track how they accommodate requests for ...
Just Right Service: Looking Forward Business Integration 2005 Process  Process Improvement Design DMAIC / Kaizen  DMADV “ ...
Kaizen Events and the Frontline Employee   Kaizen  Process  Improvement 2005
What is “Standardization”? <ul><li>A  consistent method  of achieving efficient production without waste , based on  human...
Standardization vs. Defect Reduction <ul><li>Standardization </li></ul><ul><li>Improving productivity and quality by stand...
What is “Lean?” “ A philosophy   of   continuous improvement  based on  setting standards  aimed at  eliminating waste  th...
What is “Kaizen?” Comprised of the Japanese words meaning “change” and “better” A Kaizen Event is a 3 day workshop focused...
The  Eight  Deadly Wastes <ul><li>Motion / Walking </li></ul><ul><li>Processing </li></ul><ul><li>Correction </li></ul><ul...
Similarities Between Six Sigma and Lean <ul><li>Employ DMAIC methodology </li></ul><ul><li>Utilize tools for process chara...
 
Defect Reduction Tools <ul><li>Project Charter </li></ul><ul><li>SIPOC </li></ul><ul><li>Process Map </li></ul><ul><li>Cau...
Kaizen Tools <ul><li>Project Charter </li></ul><ul><li>Value Stream Map </li></ul><ul><li>Cause and Effect Diagram </li></...
Process Improvement Tools <ul><li>Project Charter </li></ul><ul><li>SIPOC </li></ul><ul><li>Process Map </li></ul><ul><li>...
Kaizen Event: Project Candidates <ul><li>Single process focus </li></ul><ul><li>Process performed by multiple staff member...
Kaizen Event: What to Expect <ul><ul><li>Reduction in cycle time </li></ul></ul><ul><ul><li>Waste elimination  </li></ul><...
Kaizen Event: Process <ul><li>Clarify the goal and target areas </li></ul><ul><li>Understand the current process as it rea...
Kaizen Event: Key Deliverables <ul><ul><li>Process Map </li></ul></ul><ul><ul><li>Process Observations </li></ul></ul><ul>...
Kaizen Participant Feedback <ul><li>“The training helped me to realize how important the workflow is for each person’s job...
Kaizen Lessons Learned <ul><li>Stay on schedule </li></ul><ul><li>Be careful of selecting multiple processes or the wrong ...
DMADV and the Impact on Design   DMADV Process Design 2005
What is DMADV? A systematic methodology, with tools, training and measurements which enable us to  design  products and pr...
Why Use DMADV? Planned Resource Level Time Resource Level Up-front investment is the most effective And efficient approach...
<ul><li>New   Process or Service Introduction </li></ul><ul><li>or </li></ul><ul><li>Process   Broken   or   Does Not Exis...
Just Right Service: Future State The Way  We Do  Business  2006
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Optimizing the Use of Lean and Six Sigma Tools

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  • The goal of CONTINUOUS IMPROVEMENT can only be achieved we create a system by which we SET STANDARDS, ELIMINATE WASTE, and FOSTER PARTICIPATION. Henry Ford’s System of Mass Production Today and Tomorrow , 1922 Toyota trained under Ford’s Leadership Toyota Production System is founded on Ford’s ideas Training Within Industry Developed by U.S. Government to support industry during WWII Job Instruction  Standardized Work and training Job Methods  Kaizen, “improvement culture” Job Relations  Work Teams The term “Lean” was first used to describe Toyota’s Production System by Jim Womack and Dan Jones in The Machine that Changed the World
  • The goal of CONTINUOUS IMPROVEMENT can only be achieved we create a system by which we SET STANDARDS, ELIMINATE WASTE, and FOSTER PARTICIPATION. Why is PARTICIPATION OF ALL a requirement? The average worker knows his/her job better than anyone else People support what they help to create Without buy-in from the team, standards will not be followed In order for Lean and standardized work to become a part Of the culture, it must be embraced by everyone.
  • The house model is based upon the model created by Toyota in Japan. The model was Americanized when Toyota opened their first plant in Georgetown, Kentucky. The bedrock that supports the entire house is EQUIPMENT RELIABILITY 2. The foundation of the house is LEVEL PRODUCTION. This is simply scheduling work such that it is constant in pace—average the amount of work across the amount of time that we have to complete it. 3. On the left is the pillar of IN-STATION PROCESS CONTROL. This means that each station has the ability to stop the process either before a defect is produced or before it can be passed on to the next station. 4. On the right is JUST IN TIME. 5. The roof of the house contains the METRICS we use to rate our performance. 6. Last and most important, at the center of the house are WORK TEAMS. In addition to these key philosophies, there are 3 things that support the entire structure. 5-S—the basic discipline that provides for workplace organization The principle of waste elimination through workplace organization. Derived from the Japanese words seiri, seiton, seiso, seiketsu, and shitsuke. In English the 5S are sort, straighten, sweep, standardize, and self-discipline. Standardization—if chaos reigns, Lean is not possible DMAIC—the DMAIC roadmap provides a structure by which we conduct our improvement efforts
  • The house model is based upon the model created by Toyota in Japan. The model was Americanized when Toyota opened their first plant in Georgetown, Kentucky. The bedrock that supports the entire house is EQUIPMENT RELIABILITY 2. The foundation of the house is LEVEL PRODUCTION. This is simply scheduling work such that it is constant in pace—average the amount of work across the amount of time that we have to complete it. 3. On the left is the pillar of IN-STATION PROCESS CONTROL. This means that each station has the ability to stop the process either before a defect is produced or before it can be passed on to the next station. 4. On the right is JUST IN TIME. 5. The roof of the house contains the METRICS we use to rate our performance. 6. Last and most important, at the center of the house are WORK TEAMS. In addition to these key philosophies, there are 3 things that support the entire structure. 5-S—the basic discipline that provides for workplace organization The principle of waste elimination through workplace organization. Derived from the Japanese words seiri, seiton, seiso, seiketsu, and shitsuke. In English the 5S are sort, straighten, sweep, standardize, and self-discipline. Standardization—if chaos reigns, Lean is not possible DMAIC—the DMAIC roadmap provides a structure by which we conduct our improvement efforts
  • The house model is based upon the model created by Toyota in Japan. The model was Americanized when Toyota opened their first plant in Georgetown, Kentucky. The bedrock that supports the entire house is EQUIPMENT RELIABILITY 2. The foundation of the house is LEVEL PRODUCTION. This is simply scheduling work such that it is constant in pace—average the amount of work across the amount of time that we have to complete it. 3. On the left is the pillar of IN-STATION PROCESS CONTROL. This means that each station has the ability to stop the process either before a defect is produced or before it can be passed on to the next station. 4. On the right is JUST IN TIME. 5. The roof of the house contains the METRICS we use to rate our performance. 6. Last and most important, at the center of the house are WORK TEAMS. In addition to these key philosophies, there are 3 things that support the entire structure. 5-S—the basic discipline that provides for workplace organization The principle of waste elimination through workplace organization. Derived from the Japanese words seiri, seiton, seiso, seiketsu, and shitsuke. In English the 5S are sort, straighten, sweep, standardize, and self-discipline. Standardization—if chaos reigns, Lean is not possible DMAIC—the DMAIC roadmap provides a structure by which we conduct our improvement efforts
  • The house model is based upon the model created by Toyota in Japan. The model was Americanized when Toyota opened their first plant in Georgetown, Kentucky. The bedrock that supports the entire house is EQUIPMENT RELIABILITY 2. The foundation of the house is LEVEL PRODUCTION. This is simply scheduling work such that it is constant in pace—average the amount of work across the amount of time that we have to complete it. 3. On the left is the pillar of IN-STATION PROCESS CONTROL. This means that each station has the ability to stop the process either before a defect is produced or before it can be passed on to the next station. 4. On the right is JUST IN TIME. 5. The roof of the house contains the METRICS we use to rate our performance. 6. Last and most important, at the center of the house are WORK TEAMS. In addition to these key philosophies, there are 3 things that support the entire structure. 5-S—the basic discipline that provides for workplace organization The principle of waste elimination through workplace organization. Derived from the Japanese words seiri, seiton, seiso, seiketsu, and shitsuke. In English the 5S are sort, straighten, sweep, standardize, and self-discipline. Standardization—if chaos reigns, Lean is not possible DMAIC—the DMAIC roadmap provides a structure by which we conduct our improvement efforts
  • 5 5 5 6
  • Culture Question: Who are the heroes? Problem Firefighters OR Problem Preventers
  • What is the difference between “broken” and “needs to improve”? Not designed for capacity Process is failing on multiple CTQs Does not exist: when multiple or non-standard versions of the process exists. Entitlement: A process can hit a barrier such as technology. Using DFE can help to achieve exponential improvement on the journey to Just Right Service.
  • Transcript of "Optimizing the Use of Lean and Six Sigma Tools"

    1. 1. Optimizing the Use of Lean and Six Sigma Tools <ul><li>March 4, 2005 </li></ul>
    2. 2. UnitedHealth Group Mission and Values <ul><li>UnitedHealth Group is a diversified health and well-being company dedicated to making the health care system work better. The company directs its resources into designing products, providing services and applying technologies that: </li></ul><ul><li>improve access to health and well-being services; </li></ul><ul><li>simplify the health care experience; </li></ul><ul><li>promote quality; and, </li></ul><ul><li>make health care more affordable. </li></ul>
    3. 3. A Comprehensive Approach UnitedHealth Group serves the entire spectrum of health care participants: individual consumers, employers, governments, commercial payers and intermediaries, care providers ranging from hospitals to physicians, and pharmaceutical and medical device manufacturers.
    4. 4. Specialized Care Services Overview <ul><li>Specialized Care Services is a portfolio of businesses that offers a diverse array of unique and specialized health and wellness benefits, services and resources: </li></ul><ul><li>• Specialty Health and Well-Being Services – Behavioral health services, employee assistance programs, chiropractic services, alternative and complementary care, and physical therapy services. </li></ul><ul><li>• Personal Health Services – Consumer health information, critical illness networks and support services, and health condition management capabilities. </li></ul><ul><li>• Consumer Care Services – Comprehensive dental and vision benefits and services. </li></ul><ul><li>• Group Insurance Services – Critical accident, short-term disability and life coverages, and cost management services for health plans, self-insured employers and individual consumers. </li></ul>
    5. 5. An Organized Portfolio Serving Distinct Markets Complementary customer needs, distribution channels, and operating assets Specialized Care Services Specialty Health and Well-Being Consumer Care Services Personal Health Services Group Insurance Services
    6. 6. Just Right Service: Timeline The Way We Do Business Launch Vision into Action Executing w/ Discipline and Urgency Business Integration 2002 2003 2004 2005 2006 Process Process Process Improvement Design Control DMAIC / Kaizen DMADV BPMS “ At SCS “At SCS for “At the Customer for SCS” the Customer” for the Customer”
    7. 7. Just Right Service: Looking Back Launch Vision into Action Executing w/ Discipline and Urgency 2002 2003 2004 Process Improvement DMAIC “ At SCS for SCS”
    8. 8. Selected DMAIC Project Overviews Created a common platform by which all sites can track how they accommodate requests for non-network services. This approach for allows for increased service levels to members looking for accommodations, while also providing valuable input into the network development process. Accommodation Standardization Improved the entire process around member communications. Order accuracy was addressed by implementing guidelines that coincided with a streamlined process, while the internal costs associated with handling the materials were reduced through the addition of bar-coding procedures. Member Communication Costs Standardized the process by which nurses make outbound calls to members to follow-up on treatment recommendations and care delivery. Moved all assessments to an on-line format, allowing for improved reporting and a consistency in both the questions asked and the documented assessments. This resulted in increased quality and the opportunity for each nurse to reach more members per day. On-line Clinical Assessments Along with developing a standard operating procedure for the transplant referral process, associated tools were implemented specific to each component to help staff more easily identify referral opportunities. More members will now benefit from transplant clinical consulting services and access to the nation’s leading transplant programs through United Resource Networks’ Transplant Resource Services Centers of Excellence Network. Transplant Referrals Focus Project
    9. 9. Just Right Service: Looking Forward Business Integration 2005 Process Process Improvement Design DMAIC / Kaizen DMADV “ At SCS “At SCS for for SCS” the Customer”
    10. 10. Kaizen Events and the Frontline Employee Kaizen Process Improvement 2005
    11. 11. What is “Standardization”? <ul><li>A consistent method of achieving efficient production without waste , based on human action . </li></ul><ul><li>Highest quality, most efficient, safest way you know today </li></ul><ul><li>Only one standard at a time </li></ul><ul><li>Documentation of know-how </li></ul><ul><li>Objective, simple, observable </li></ul><ul><li>Consistent with quality, cost, regulatory and customer delivery requirements </li></ul><ul><li>Show relationship between cause and effect </li></ul>
    12. 12. Standardization vs. Defect Reduction <ul><li>Standardization </li></ul><ul><li>Improving productivity and quality by standardizing all human actions associated with a single process. Provides the foundation for further process improvement and defect reduction. </li></ul>Defect Reduction Reducing the defects of a single Critical-to-Quality characteristic by focusing on the key input variables of a process.
    13. 13. What is “Lean?” “ A philosophy of continuous improvement based on setting standards aimed at eliminating waste through participation of all employees.” The goal of Lean is to accelerate the velocity of any process by reducing waste.
    14. 14. What is “Kaizen?” Comprised of the Japanese words meaning “change” and “better” A Kaizen Event is a 3 day workshop focused on rapid improvement through the observation and analysis of a process. Process performers learn and use Lean concepts to remove waste, reduce variability, standardize work, and implement the improved process as the new standard.
    15. 15. The Eight Deadly Wastes <ul><li>Motion / Walking </li></ul><ul><li>Processing </li></ul><ul><li>Correction </li></ul><ul><li>Waiting </li></ul><ul><li>Overproduction / Early Production </li></ul><ul><li>Conveyance </li></ul><ul><li>Inventory </li></ul><ul><li>Not Utilizing the Talent and Knowledge of People </li></ul>
    16. 16. Similarities Between Six Sigma and Lean <ul><li>Employ DMAIC methodology </li></ul><ul><li>Utilize tools for process characterization and optimization </li></ul><ul><li>Rely on cultural change </li></ul><ul><li>Focus on variation and waste </li></ul><ul><li>Approach making decisions on business processes in a structured way </li></ul>
    17. 18. Defect Reduction Tools <ul><li>Project Charter </li></ul><ul><li>SIPOC </li></ul><ul><li>Process Map </li></ul><ul><li>Cause and Effect Diagram </li></ul><ul><li>FMEA </li></ul><ul><li>Gauge R&R </li></ul><ul><li>Pareto </li></ul><ul><li>Box Plot </li></ul><ul><li>Histogram </li></ul><ul><li>Hypothesis Testing </li></ul><ul><li>Correlation and Regression </li></ul><ul><li>Design of Experiments </li></ul><ul><li>Simulation </li></ul><ul><li>Optimization </li></ul><ul><li>Control Plans </li></ul><ul><li>Work Standards </li></ul><ul><li>Job Instruction </li></ul><ul><li>Standardized Work </li></ul><ul><li>SPC </li></ul><ul><li>Mistake Proofing </li></ul><ul><li>Audit </li></ul>
    18. 19. Kaizen Tools <ul><li>Project Charter </li></ul><ul><li>Value Stream Map </li></ul><ul><li>Cause and Effect Diagram </li></ul><ul><li>FMEA </li></ul><ul><li>Pareto </li></ul><ul><li>Box Plot </li></ul><ul><li>Histogram </li></ul><ul><li>Control Plans </li></ul><ul><li>Work Standards </li></ul><ul><li>Job Instruction </li></ul><ul><li>Standardized Work </li></ul><ul><li>Work Sequence </li></ul><ul><li>Standard Work in Process </li></ul><ul><li>SPC </li></ul><ul><li>Mistake Proofing </li></ul><ul><li>Audit </li></ul>
    19. 20. Process Improvement Tools <ul><li>Project Charter </li></ul><ul><li>SIPOC </li></ul><ul><li>Process Map </li></ul><ul><li>Value Stream Map </li></ul><ul><li>Cause and Effect Diagram </li></ul><ul><li>FMEA </li></ul><ul><li>Gauge R&R </li></ul><ul><li>Pareto </li></ul><ul><li>Box Plot </li></ul><ul><li>Histogram </li></ul><ul><li>Hypothesis Testing </li></ul><ul><li>Correlation and Regression </li></ul><ul><li>Design of Experiments </li></ul><ul><li>Simulation </li></ul><ul><li>Optimization </li></ul><ul><li>Control Plans </li></ul><ul><li>Work Standards </li></ul><ul><li>Job Instruction </li></ul><ul><li>Standardized Work </li></ul><ul><li>Work Sequence </li></ul><ul><li>Standard Work in Process </li></ul><ul><li>SPC </li></ul><ul><li>Mistake Proofing </li></ul><ul><li>Audit </li></ul>
    20. 21. Kaizen Event: Project Candidates <ul><li>Single process focus </li></ul><ul><li>Process performed by multiple staff members </li></ul><ul><li>Process productivity and quality are currently measured or measurable </li></ul><ul><li>Process lacks control or process is not standardized </li></ul><ul><li>Process is repeatable and happens from start to finish every day </li></ul><ul><li>Process capitalizes on process performer knowledge </li></ul>
    21. 22. Kaizen Event: What to Expect <ul><ul><li>Reduction in cycle time </li></ul></ul><ul><ul><li>Waste elimination </li></ul></ul><ul><ul><li>Improved quality </li></ul></ul><ul><ul><li>Documented standardized process </li></ul></ul><ul><ul><li>Employee involvement and subsequent ownership of the process </li></ul></ul><ul><ul><li>Staff training in continuous improvement </li></ul></ul>
    22. 23. Kaizen Event: Process <ul><li>Clarify the goal and target areas </li></ul><ul><li>Understand the current process as it really is </li></ul><ul><li>Identify best practices, waste, and opportunities for improvement </li></ul><ul><li>Generate improvement ideas and ways to eliminate waste </li></ul><ul><li>Discuss improvement ideas with internal customers </li></ul><ul><li>Try the new process </li></ul><ul><li>Verify process/refine ideas </li></ul><ul><li>Document the new process and training plan </li></ul><ul><li>Plan for followup </li></ul><ul><li>Report results </li></ul>
    23. 24. Kaizen Event: Key Deliverables <ul><ul><li>Process Map </li></ul></ul><ul><ul><li>Process Observations </li></ul></ul><ul><ul><li>Standardized Work Chart </li></ul></ul><ul><ul><li>Recommendations to Management </li></ul></ul><ul><ul><li>Requests to Business Partners </li></ul></ul><ul><ul><li>Follow-up Tracking Sheet </li></ul></ul>
    24. 25. Kaizen Participant Feedback <ul><li>“The training helped me to realize how important the workflow is for each person’s job.” </li></ul><ul><li>“Gives me a foundation and a way to come up with a plan on improving my productivity.” </li></ul><ul><li>“New ways to think about what we do.” </li></ul><ul><li>“I learned how to get an enormous project done quickly and efficiently” </li></ul><ul><li>“Using structured processes guarantees both value to our customers and consistency for process performers” </li></ul><ul><li>“How important a vision, a goal and an objective are in completing a major task” </li></ul><ul><li>“Having the opportunity to find out our similarities and differences…beyond valuable!” </li></ul><ul><li>“Bringing together like-minded people to address issues that impact all of us” </li></ul>
    25. 26. Kaizen Lessons Learned <ul><li>Stay on schedule </li></ul><ul><li>Be careful of selecting multiple processes or the wrong objective </li></ul><ul><li>Select the right team – not only top performers </li></ul><ul><li>Gain management’s approval at the initial report out </li></ul><ul><li>Mitigate lack of supervisory support </li></ul><ul><li>Hold the Control Plan to the same standards as DMAIC </li></ul><ul><li>Follow-up at key intervals to ensure accountability </li></ul>
    26. 27. DMADV and the Impact on Design DMADV Process Design 2005
    27. 28. What is DMADV? A systematic methodology, with tools, training and measurements which enable us to design products and processes that meet customer expectations at a high quality level. The Right Product At The Right Time With The Right Quality
    28. 29. Why Use DMADV? Planned Resource Level Time Resource Level Up-front investment is the most effective And efficient approach Actual Resource Level Expected Resource Level With DMADV Post Launch Problem Teams
    29. 30. <ul><li>New Process or Service Introduction </li></ul><ul><li>or </li></ul><ul><li>Process Broken or Does Not Exist </li></ul><ul><li>Process Has Reached Entitlement </li></ul>When Would You Use DMADV?
    30. 31. Just Right Service: Future State The Way We Do Business 2006
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