Lean Six Sigma Naval Reserve Presentation


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  • Research indicates there are limits to the number of relationships we can actually manageGortex company builds a new factory every time another facility gets over 200 peopleTypical response has been to layer managementThis allows for a large span of control, but this introduces a number of informational and organizational barriersThe organization take priority over the needs of the customers overall interaction
  • Result: Cellular work teams which self manageResult: All employees engaged & contributeResult: Just in Time deliveryResult: Ability to quickly change product mixResult: Clear understanding of qualityResult: Design, manufacturing, sales work closely together
  • Slide 8 - My factory started 325 wafers per day. If each step in the process averaged 99%, average of 400 steps, it would have take 15 years to get one wafer out
  • Lean Six Sigma Naval Reserve Presentation

    1. 1. LSS Process Improvement<br />Benefits of Lean Six Sigma (LSS) for all Organizations<br />Justin Anderson<br />justin.anderson@bcbsnc.com<br />
    2. 2. Central Thesis<br />No individual can routinely make best decisions<br />Complex world<br />All stakeholders needed<br />Lean Six Sigma (LSS) Focuses on Culture<br />Too much attention given to use statistics<br />Primary goal to provide:<br />Collaborative culture of improvement<br />Objective decision making framework<br />Consistent approach to problem solving<br />
    3. 3. Agenda<br />My background<br />Build credibility on subject<br />Why LSS is needed<br />History<br />Lean & Toyota<br />Six Sigma & Motorola<br />Methodology<br />Program Management<br />DMAIC<br />Summary<br />For today, <br />T-test free zone<br />
    4. 4. Justin Anderson<br />BS in Materials Engineering at UF (2000)<br />“How to make a bridge as safely & cheaply as possible”<br />Process engineer at Texas Instruments(2001-2006)<br />Enabling cost effective computer chips<br />MBA at UNC (2006 – 2008)<br />Understanding organizations and customer needs<br />Internal Consultant at BCBSNC (2008 – present)<br />Improving healthcare business processes<br />I’ve done the same thing the entire time<br /><ul><li>Understanding organizational problems
    5. 5. Figuring out how to improve performance</li></li></ul><li>Organizational Barriers<br />Need for LSS<br />
    6. 6. Why is LSS Needed?<br />Why can’t good leaders always make the best decisions?<br />Apparent Reasons<br />Time<br />Informational barriers<br />Unapparent Reasons<br />Urgency verse Importance<br />Cognitive Biases<br />Personal Paradigms<br />Dunbar’s Number<br />Static vs. Adaptive efficiencies<br />LSS provides a <br />framework<br />Covey’s Time Priorization Matrix<br />“Fire Fighting”<br /><ul><li>Customer complaints
    7. 7. People issues
    8. 8. System downs
    9. 9. Stock outs</li></ul>“Fire Proofing”<br /><ul><li>Strategic planning
    10. 10. Process mapping
    11. 11. Mentoring others
    12. 12. Cleaning desk</li></ul>High<br />Importance<br />“Poking Coals”<br /><ul><li>Meetings
    13. 13. Chatting w/ co-workers
    14. 14. Web Surfing</li></ul>“Chasing Smoke”<br /><ul><li>Making reports
    15. 15. Weekly updates
    16. 16. Projects without resources</li></ul>Low<br />Urgency<br />High<br />Low<br />
    17. 17. Monkey Business & Dunbar<br /><ul><li>Dunbar’s Number
    18. 18. Physiological limits to groups
    19. 19. Only ~150 relationship
    20. 20. Number re-occurs in real world
    21. 21. Tribal societies, military, Gortex</li></ul>Primate Group Size vs. Primate Neocortex<br />Homo Sapiens<br />Group Size<br />Neocortex Ratio<br />Redrawn from Dubar, “Neocortex size as a constraint on group size in primates”, Journal of Human Evolution (1992) 20, 469-493<br /><ul><li>Large company response?
    22. 22. Layered Management
    23. 23. Problems?
    24. 24. One direction information flow
    25. 25. Silos and loss of customer focus</li></li></ul><li>Better Organizations<br />History of LSS<br />
    26. 26. Toyota & Lean<br />World War II left Toyota in bad shape<br />Could not afford waste<br />No managers who only managed<br />No large inventories of parts / unsold products<br />No large batch processing equipment<br />Customer only got what they wanted<br />Intensive focus on customer needs<br />Ability to quickly change products<br />Scarcity created self sustaining culture & mission<br />Lean methodology was born<br />Well what about recent issues???<br />Lean difficult if you can’t simplify (ex., electronics)<br />(Toyota’s manufacturing system) != (All Toyota’s business processes)<br />Some adoption, but growth allowed for waste<br />Can’t discount overall success – industry was transformed<br />
    27. 27. Motorola & Six Sigma<br />Semiconductors are tough<br />Difficult to directly observe what happens (Black Box)<br />Numerous complex steps<br />TI example<br />Motorola developed Six Sigma<br />Identify customer requirements in measurable terms (Y’s)<br />Map process inputs to outcomes (X’s)<br />Average output and variation<br />Sub-process steps then broken into these terms<br />Organization mirrors relationship<br />Ownership driven down<br />Reporting driven up<br />Heavy focus on control and response<br />Complexity created self sustaining culture & mission<br />Six Sigma methodology was born<br />
    28. 28. Implementation<br />LSS Methodology<br />
    29. 29. Lean – Applied Concepts<br />Lean process maximizing value delivery and minimizing waste<br />
    30. 30. Six Sigma – Defined Process<br />Highly controlled process where variation has been minimized<br />
    31. 31. LSS –Lean Concepts & Six Sigma Process <br />Initial State<br />Post Six Sigma<br />Post Lean<br />Customer Request<br />Customer Request<br />Customer Request<br />Customer Fulfillment<br />Customer Fulfillment<br />Lean focus on shortening process to essential steps<br />Six Sigma identifies opportunities within process<br />Customer Fulfillment<br />
    32. 32. LSS – Improvement Attitude<br />Actual “Delivery”<br />Actual “Improvement”<br />Planned Improvement<br />“Fix”<br />“Fix”<br />“Fix”<br />Traditional Approach<br />Project<br />Efficiency<br />Project<br />Project<br />Situation<br />Changes<br />Current<br />Current<br />Current<br />Time<br />Time<br />Time<br />Continuous Improvement<br />You will never “Fix” a process<br />Environment is NOT static<br />Why strive for static efficiency?<br />Goal: Incremental improvement<br />Small change = fast change<br />Adoptive efficiency has higher yields<br />FS7<br />FS6<br />FS4<br />FS5<br />FS3<br />LSS Approach<br />FS2<br />Efficiency<br />FS1<br />Change<br />Change <br />Current<br />Time<br />
    33. 33. Key Point – Change Acceptance<br />E<br />Effectiveness<br />=<br />x<br />Q<br />Quality Improvement<br />A<br />Acceptance<br />Success of cultural and process changes dependent on:<br />How to do this?<br />Clear mission<br />Full engagement of organization<br />Objective, data driven methodology (LSS)<br />Effective change management<br />
    34. 34. Four Methodologies of LSS <br />
    35. 35. Staffing<br />LSS Organization<br />
    36. 36. The Quality Team Structure<br />Business Team <br />Quality Team<br />Strategic Direction<br />Strategic Planning<br />Tactical Direction<br />Tactical Alignment<br />Overlap<br />
    37. 37. Summary<br />LSS focused on culture<br />Best leaders can’t consistently make best decisions<br />Ensure right people have right information<br />Empowering people, Holding people accountable<br />LSS methods and tools support the culture<br />LSS provides problem solving framework<br />Standard, data driven approach<br />Ensures appropriate project prioritization<br />Data driven selection<br />Leaders provided with needed inform<br />LSS strives for continuous Improvement<br />Incremental, fast improvement vs. big “fixes”<br />Goal of adaptive efficiency vs. static efficiency<br />E = Q * A<br />
    38. 38. Backup Slides<br />Additional LSS Mechanics<br />
    39. 39. Six Sigma Defined<br />Understand what customer will and will not except<br />Upper (UCL) and lower limits (LCL)<br />Understand your process average<br />Process Average<br />Understand how much your process varies<br />Process Standard Deviation<br />Determine probability of producing outside of limits<br />Center process & identify variation<br />
    40. 40. Six Sigma Y’s and X’s – CTQ Tree & FMEA <br />CTQ Tree<br />Customers to Inputs<br />FMEA<br />Prioritize & Prevent Errors<br />Ongoing improvement efforts<br />Document Process Steps<br />Identify failure modes<br />Assign Severity, Failure Probability, & Detection<br />Multiply #3 to create Risk Priority Number (RPN)<br />Prioritize based on RPN<br />Figuring out what went wrong<br />Identify measurable response (Ys)<br />Identify sub-process and/or drivers<br />Identify measurable inputs (Xs)<br />Prioritize either by creating FMEA or other methods<br />
    41. 41. Bench Marking by Sigma Level<br />6 Sigma<br />3.4 Defects<br />5 Sigma<br />233 Defects<br />4 Sigma<br />6,210 Defects<br />3 Sigma<br />66,807 Defects<br />2 Sigma<br />308,537 Defects<br />Defects per Million Parts<br />
    42. 42. What it means to be @ Six Sigma<br />Is 99% (3.8s) good enough?<br />99.99966% Good – At 6s<br />20,000 lost mails per hour<br />7 lost mails per hour<br />Unsafe drinking water almost 15 minutes each day<br />One minute of unsafe drinking water every seven months<br />5,000 incorrect surgical operations per week<br />1.7 incorrect surgical operations per week<br />2 short or long landings at most major airports daily<br />One short or long landing at major airports every five years<br />200,000 wrong drug prescriptions each year<br />68 wrong drug prescriptions each year<br />Example quoted from GE Book of Knowledge - copyright GE<br />
    43. 43. The Need of BPMS<br /><ul><li>To understand the process; it’s mission, flow and scope
    44. 44. To know the customers and their expectations
    45. 45. To identify, monitor and improve correct performance measures for the process</li></li></ul><li>The Approach<br />Practical <br />Problem<br />Statistical<br />Problem<br />Statistical <br />Solution<br />Practical <br />Solution<br />
    46. 46. Methodology<br />D<br />Define<br />Identify and state the practical problem<br />M<br />Measure<br />Validate the practical problem by collecting data<br />A<br />Analyze<br />Convert the practical problem to a statistical one, define statistical goal and identify potential statistical solution<br />I<br />Improve<br />Confirm and test the statistical solution<br />C<br />Control<br />Convert the statistical solution to a practical solution<br />
    47. 47. D<br />Define<br />VoC - Who wants the project and why ?<br />M<br />Measure<br />The scope of project / improvement<br />A<br />Analyze<br />Key team members / resources for the project<br />I<br />Improve<br />Critical milestones and stakeholder review<br />C<br />Control<br />Budget allocation<br />Define<br />
    48. 48. D<br />Define<br />Ensure measurement system reliability<br />- Is tool used to measure the output variable flawed ?<br />- Do all operators interpret the tool reading in the same way ? <br />M<br />Measure<br />A<br />Analyze<br />Prepare data collection plan<br />- How many data points do you need to collect ?<br /><ul><li> How many days do you need to collect data for ?
    49. 49. What is the sampling strategy ?
    50. 50. Who will collect data and how will data get stored ?
    51. 51. What could the potential drivers of variation be ?</li></ul>I<br />Improve<br />C<br />Control<br />Collect data<br />Measure<br />
    52. 52. D<br />Define<br />Understand statistical problem<br />M<br />Measure<br />Baseline current process capability<br />A<br />Analyze<br />I<br />Improve<br />Define statistical improvement goal<br />C<br />Control<br />Identify drivers of variation (significant factors)<br />Analyze<br />
    53. 53. Analyze – Identify Drivers of Variation<br />Primary Cause<br />Secondary Cause<br />Problem<br />Backbone<br />Root Cause<br /> Root Cause Analysis (fish bone)<br /><ul><li>A brainstorming tool that helps define and display major causes, sub causes and root causes that influence a process
    54. 54. Visualize the potential relationship between causes which may be creating problems or defects</li></li></ul><li>Analyze – Identify Drivers of Variation<br /> Control – Impact Matrix<br /><ul><li>A visual tool that helps in separating the vital few from the trivial many</li></ul>Control<br />Impact<br />
    55. 55. Analyze – Identify Drivers of Variation<br />Pareto Chart<br /><ul><li>Pareto principle states that disproportionately large percentage of defects are caused due to relatively fewer factors (generally, 80% defects are caused by 20% factors) </li></li></ul><li>Analyze – Identify Drivers of Variation<br />Process Map Analysis<br /><ul><li>Visually highlights hand off points / working relationships between people, processes and organizations
    56. 56. Helps identify rework loops and non value add steps</li></li></ul><li>Analyze – Identify Drivers of Variation<br />Hypothesis Testing<br /><ul><li>A statistical tool used to validate if two samples are different or whether a sample belongs to a given population</li></ul>Null Hypothesis (Ho) is the statement of the status quo<br />Alternate Hypothesis (Ha) is the statement of difference<br />One way ANOVA<br />Homogeneity of <br />Variance<br />Moods Median<br />Regression<br />Chi-Square<br />
    57. 57. D<br />Define<br />Map improved process<br />M<br />Measure<br />A<br />Analyze<br />Pilot solution<br />I<br />Improve<br />C<br />Control<br />Identify operating tolerance on significant factors<br />Improve<br />
    58. 58. D<br />Define<br />Ensure measurement system reliability for significant factors<br />M<br />Measure<br />- Is tool used to measure the input / process variables flawed ?<br />- Do all operators interpret the tool reading in the same way ? <br />A<br />Analyze<br />Improved process capability<br />I<br />Improve<br />Sustenance Plan<br />C<br />Control<br />- Statistical Process Control<br />- Mistake Proofing<br />- Control Plan<br />Control<br />
    59. 59. Control Plan<br /><ul><li>Have the new operating procedures and standards been documented ?
    60. 60. What Statistical Process Control (SPC) tools will be used to monitor the process performance ?
    61. 61. Who will review the performance of the output variable and significant factors on closure of the project and how frequently ?
    62. 62. What is the corrective action or reaction plan if any of the factors were to be out of control ?</li></ul>Control – Sustenance Plan<br />
    63. 63. Six Sigma Organization<br />
    64. 64. Six Sigma Titles<br /><ul><li>Basic - Six Sigma Awareness
    65. 65. Green Belt Projects
    66. 66. Participate in Black Belt Projects
    67. 67. Assist business functions with day to day activities</li></ul>Green Belt (GB)<br /><ul><li>Mentor/Train Green Belts
    68. 68. Black Belt Projects
    69. 69. Change Agents
    70. 70. Work along with the business owners</li></ul>Black Belt (BB)<br /><ul><li>Mentor/ Train Black Belts
    71. 71. Run Strategic projects
    72. 72. More Strategic than tactical role</li></ul>Master Black Belt (MBB)<br />