Lean Six Sigma Projects & Strategy Linkage

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How to integrate LSS – People, Processes, Systems, Methods, Roadmaps, Tools & Techniques?

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Lean Six Sigma Projects & Strategy Linkage

  1. 1. Integrating Lean Six Sigma Projects to Your Strategy<br />How to integrate LSS – People, Processes, Systems, Methods, Roadmaps, Tools & Techniques?<br />Anand Subramaniam<br />
  2. 2. 2<br />“Good teaching is one-fourth preparation and three-fourths theater.” <br />- Gail Godwin<br />
  3. 3. 3<br />Highlights<br />Vision – Centre of Excellence (CoE)<br /><ul><li>Linking Strategy to Lean & Six Sigma Projects Selection
  4. 4. Lean & Six Sigma
  5. 5. Lean & Six Sigma – From Project Selection to Benefit Realisation
  6. 6. Lean & Six Sigma – Roadmaps
  7. 7. DMAIC - High Level Overview</li></li></ul><li>Vision – Centre of Excellence (CoE)<br />
  8. 8. Process Maturity - where are you?<br />5<br />No process measurement or control<br />Some breakthrough improvements<br />Many incremental improvements<br />Continuous Improvement Culture<br /><ul><li>Enhance Measurements
  9. 9. Drive and direct change
  10. 10. Kaizen Events, Lean Six Sigma Projects
  11. 11. Identify & remove waste within their own work
  12. 12. Culture focused on striving towards – perfection (continuous improvement)</li></ul>Lean & Six Sigma Projects<br /><ul><li>Focus on major value streams
  13. 13. Address root causes of process problems
  14. 14. Refine LSS metrics & support structures
  15. 15. Generate value!</li></ul>Pilot Program<br /><ul><li>Identify & map core value streams and processes
  16. 16. Select diverse portfolio of pilot projects
  17. 17. Launch LSS pilots
  18. 18. Measure & adapt LSS structure appropriately
  19. 19. Integrate LSS into organisational fabric</li></ul>Maturity<br />Time<br />
  20. 20. Customer Experience – do you measure it?<br />6<br />Enhance Customer Experience<br />Innovation<br />(Business Model, Products / Services and<br />Processes) <br />External Stakeholder (Political, Society) <br />Improve-ments<br />Employee <br />Engagement (Safety, Morale)<br />Revenue & Growth Improve-ments<br />Cost &<br />Productivity<br />Process Improve-ments<br />Build cross functional teams - capabilities & competencies<br />Lean Six Sigma Projects<br />Business Process Standardisation (BPM)<br />
  21. 21. Process Excellence <br />7<br />Process <br />Improvement <br />Improve existing processes<br />to ever increasing values<br />Process <br />Innovation<br />Identify & create new products & <br />Processes<br />CoE <br />(Centre of <br />Excellence)<br />Process <br />Management<br />Maintain standard <br />processes, metrics &<br /> leverage of<br />improvements<br />
  22. 22. LSS & Process Maturity Level– where are you? <br />8<br />Lvl 5 - Optimised<br />Low<br />High<br />Continuously Improve Process<br />Lvl 4 – Quantitatively Managed<br />Measured<br />Predictable Process<br />Lvl 3 - Defined<br />Standard<br />Productivity / Quality<br />Risk<br />Std Consistent Process<br />Lvl 2 - Managed<br />Planned & Tracked<br />Maturity levels should not be skipped<br />Disciplined Process<br />Lvl 1 - Initial<br /> Performed<br />Lvl 0 - Not performed <br />High<br />Low<br />
  23. 23. Linking Your Strategy to Lean Six Sigma Projects Selection<br />
  24. 24. Your Business Strategy & VOB / VOC<br />10<br />Voice of Business<br />Voice of Customer<br />Strategic<br />Plan<br />Plan<br />CEO scorecard<br />Business<br />Objectives<br /><ul><li>Strategic
  25. 25. Customer
  26. 26. Financial
  27. 27. Operation
  28. 28. Processes
  29. 29. Employee</li></ul>Business unit scorecard<br />Business<br />Measures<br />Project results<br /><ul><li>Cost
  30. 30. Timeliness
  31. 31. Quality
  32. 32. Customer impact</li></ul>Value stream<br />Value Leavers<br />Project selection<br />Execute<br />Methods & Tools<br />Process Scorecard<br />Strategic<br /><ul><li>Corporate-wide
  33. 33. Business unit
  34. 34. Design (DFSS)
  35. 35. Infrastructure
  36. 36. Cross-functional</li></ul>Tactical<br /><ul><li>Cost reduction
  37. 37. Defect reduction
  38. 38. Yield improvement
  39. 39. Cycle time reduction
  40. 40. Rework / scrap reduction</li></li></ul><li>Customer Focused <br />11<br />Your performance compared to competitors<br />Importance to Customers<br />High<br />Morale<br />On time Deliivery<br />Quality<br />Safety<br />Moderate-to-’Low’<br />Price<br />Process<br />Service<br />Complaints<br />We’re Better<br />They’re Better<br />
  41. 41. Have you analysed your gaps?<br />12<br />Analyse Gaps<br /><ul><li>Business alignment planning
  42. 42. Evaluate market position
  43. 43. Estimate breakthrough potential
  44. 44. Evaluate NPM readiness
  45. 45. Establish benchmarks
  46. 46. Executive ownership of findings
  47. 47. Identify barriers to implementation
  48. 48. Identify risks / opportunities </li></ul>Business<br />Strategy<br />Key Performance<br /> Indicators<br />Market place<br />Leadership Processes<br />Core Business<br />Processes<br />Process Output<br />Measures<br />Critical To <br />Satisfaction<br />Gap<br />Analysis<br />Support Processes<br />
  49. 49. How have you closed the gaps?<br />13<br />Focus on closing gaps<br />Business Strategy<br />Key Performance<br /> Indicators<br />Market place<br />Leadership Processes<br />Core Business<br />Processes<br />Process Output<br />Measures<br />Critical To <br />Satisfaction<br />Deploy key improvement areas into potential projects<br />Key Improvement Areas<br />Gap<br />Analysis<br />Support Processes<br />D<br />B<br />E<br />C<br />A<br />Prioritise potential projects <br />Potential <br />Projects<br />________<br />________<br />Potential <br />Projects<br />________<br />________<br />Potential <br />Projects<br />________<br />________<br />Potential <br />Projects<br />________<br />________<br />Potential <br />Projects<br />________<br />________<br />Select projects that will have the greatest impact on driving the businesses key performance indicators, strategy, & critical to customer (CTQ) requirements.<br />Active Projects<br />
  50. 50. Here is an example..showing linkage<br />14<br />Strategic Intent e.g. <br />10% Return on Sales<br />Financials<br />STRATEGY<br />Improve Revenue<br />Improve EBIT<br />TACTICS<br />Reduce Operating<br /> Expenses<br />Reduce Costs of<br />Poor Quality<br />Get more <br />NEW customers<br />Increase prices<br />“share of wallet” <br />Existing / New customers<br />Processes<br />EXECUTION<br />Project C<br />Project F<br />Project B<br />Project E<br />Project A<br />Project D<br />
  51. 51. Lean Six Sigma (LSS)<br />
  52. 52. Lean Six Sigma - Convergence<br />16<br />Commonality of both methodologies:<br /><ul><li>Focus on the customer - their needs / wants
  53. 53. Improve processes by eliminating waste & delivering value
  54. 54. Continuous effort to ensure improvements are sustained</li></li></ul><li>What is your ROI from LSS roll out?<br />17<br />ROI<br />Lean<br />Six Sigma<br />Customer Centricity<br />Financial Results<br />Management Engagement<br />Resource Commitment<br />Execution Infrastructure<br />Employee involvement<br />Infrastructure for Culture Change<br />
  55. 55. What about your KPIs?<br />18<br />Minimum Cycle Time<br />Right<br />Delivery<br />Robust Performance!<br />Maximum<br /> Flexibility<br />Lean Transformation<br />Minimum<br />Waste<br />Lean Tools<br />Reduced<br />Inventories<br />Improved Capacity <br />Management<br />Six Sigma Quality<br />Six Sigma Tools<br />Highest<br /> Quality<br />Right<br />Quality<br />Best Process<br /> Reliability<br />Predictable Results!<br />Rapid <br />Response to<br />Change<br />
  56. 56. An example…to better your KPIs<br />19<br />Improvement Toolset <br />Lean Environment<br />Benefits<br />Quality<br /> - Manufacture to target specifications<br /> - Ensure process capability/reliability<br /> - Standard operating procedures<br />Minimum<br />Cycle Time<br />Six Sigma<br />Maximum<br />Flexibility<br />Problems Identified and resolved<br /> - Rapid response to problems<br /> - Problems are solved immediately<br /> - Methods to eliminate root cause<br />Minimum <br />Waste<br />Predictable Output<br /> - Minimal variation in the process<br /> - Predicable equipment/worker output<br /> - Material and information is available<br />Reduced<br />Inventories<br />Value Add<br />Lean<br />Skills & Sustaining <br />Improved<br />Capacity<br />Mgmt<br />Elimination of Process Delay<br /> - Minimal Material movement<br /> - Small Lot production(EOQ =1)<br /> - Takt Time controlled<br /> - Continuous Flow<br />Highest<br />Quality<br />Quality Management <br />Systems <br />Operational costs<br /> - Multi-skilled employees<br /> - Cellular manufacturing<br /> - Repeatable process performance<br /> - Optimised Facility Design<br />Best <br />Process<br />Reliability<br />Rapid Response<br /> to Change<br />Sustaining Actions<br /> - Training<br /> - Leadership/Change Management<br /> - 1% Revenue savings<br />
  57. 57. Lean & Six Sigma - Comparison <br />20<br />Compliment each other<br />Lean<br /><ul><li>Focus – Flow
  58. 58. Approach- Qualitative
  59. 59. Goal– Reduce waste and increase process speed
  60. 60. Impact - Incremental
  61. 61. Projects – Small
  62. 62. Change- Transition
  63. 63. Method– Kaizen Events, Value Stream Mapping, Process Balancing, Constraint Identification, Mistake proofing
  64. 64. Enablers- Lean Speed enables Six Sigma Quality</li></ul>Six Sigma<br /><ul><li>Focus– Problem
  65. 65. Approach- Quantitative
  66. 66. Goal– Reduce variation, improve CTQ
  67. 67. Impact – Larger impact
  68. 68. Projects – Large
  69. 69. Change - Transformation
  70. 70. Method – Management engagement, 100% dedicated as Champions & Black Belts Use DMAIC with TQM tools to eliminate variation
  71. 71. Enablers- Six Sigma Quality enables Lean Speed </li></li></ul><li>Lean & Six Sigma – Tool Comparison<br />21<br />
  72. 72. Lean Six Sigma Implementation - CSF<br />22<br />Customer Value<br />Lean Six Sigma – Benefit Realisation<br />Executive Commitment<br />Lean Six Sigma Implementation<br />Better<br />Leadership Alignment<br />Intellectual Capital<br />Select the right problem<br />Select the right people<br />Top Line Growth<br />Faster<br />Train on the right tools<br />Reward System<br />Bottom Line Growth<br />Financial Accountability<br />Lower Cost<br />Information System<br />Cultural Change<br />Sales & Marketing<br />
  73. 73. Lean Six Sigma – Activities & Tools<br />23<br />Define<br />Improve<br />Control<br />Measure<br />Analyse<br />Specify Value<br />Perfection<br />Understand Demand<br />Level<br />Flow<br />Define<br />Measure<br />Analyse<br />Improve<br />Control<br />Activities<br /><ul><li>Identify Problem
  74. 74. Project Charter
  75. 75. Develop SIPOC Map
  76. 76. Map Business Process
  77. 77. Map Value Stream
  78. 78. Gather Voice of the Customer & Voice of the Business
  79. 79. Develop CCR’s & CBR’s
  80. 80. Finalise Project Focus
  81. 81. Develop SOP’s, Training Plan & Process Control System
  82. 82. Implement Process Changes and Controls
  83. 83. Monitor & Stabilise Process
  84. 84. Transition Project to Process Owner
  85. 85. Identify Project Replication Opportunities
  86. 86. Calculate Financial Benefit
  87. 87. Propose Critical X’s
  88. 88. Prioritise Critical X’s
  89. 89. Conduct Root Cause Analysis on Critical X’s
  90. 90. Validate Critical X’s
  91. 91. Estimate the Impact of Each X on Y
  92. 92. Quantify the Opportunity
  93. 93. Prioritise Root Causes
  94. 94. Develop Potential Solutions
  95. 95. Develop Evaluation Criteria & Select Best Solutions
  96. 96. Evaluate Solution for Risk
  97. 97. Optimise Solution
  98. 98. Develop ‘To-Be’ Process Map(s) and High-Level Implementation Plan
  99. 99. Develop Pilot Plan & Pilot Solution
  100. 100. Identify Key Input, Process Output Metrics
  101. 101. Develop Operational Definitions
  102. 102. Develop Data Collection Plan
  103. 103. Validate Measurement System
  104. 104. Collect Baseline Data
  105. 105. Determine Process Performance/Capability
  106. 106. Validate Business Opportunity
  107. 107. Project Selection Tools
  108. 108. PIP Management Process
  109. 109. Value Stream Map
  110. 110. Various Financial Analysis
  111. 111. Project Charter
  112. 112. Stakeholder Analysis
  113. 113. Communication Plan
  114. 114. SIPOC Map
  115. 115. High-Level Process Map
  116. 116. Non-Value Added Analysis
  117. 117. VOC and Kano Analysis
  118. 118. RACI and Quad Charts
  119. 119. Multi-generation Plans
  120. 120. Control Charts
  121. 121. Standard Operating Procedures (SOP’s)
  122. 122. Training Plan
  123. 123. Communication Plan
  124. 124. Implementation Plan
  125. 125. Visual Process Control
  126. 126. Process Control Plans
  127. 127. Project Commissioning
  128. 128. Project Replication
  129. 129. Plan-Do-Check-Act Cycle
  130. 130. Pareto Charts
  131. 131. C&E Matrix
  132. 132. C&E/Fishbone Diagrams
  133. 133. Brainstorming
  134. 134. Detailed ‘As-Is’ Process Maps
  135. 135. Basic Statistical Tools
  136. 136. Non Value-Added Analysis
  137. 137. Hypothesis Testing
  138. 138. FMEA
  139. 139. Box /Interaction Plots
  140. 140. Simple & Multiple Regression
  141. 141. ANOVA
  142. 142. Brainstorming
  143. 143. Benchmarking
  144. 144. Process Improvement Techniques
  145. 145. Line Balancing
  146. 146. Process Flow Improvement
  147. 147. Replenishment Pull
  148. 148. Purchasing and Sales Strategy
  149. 149. Poka-Yoke & 5S
  150. 150. FMEA & TPM
  151. 151. Solution Selection Matrix
  152. 152. ‘To-Be’ Process Maps
  153. 153. Piloting and Simulation
  154. 154. Operational Definitions
  155. 155. Data Collection Plan
  156. 156. Histograms / Pareto chart
  157. 157. Statistical Sampling
  158. 158. Measurement System Analysis (MSA),
  159. 159. Gage R&R
  160. 160. Constraint Identification
  161. 161. Setup Reduction
  162. 162. Generic Pull
  163. 163. Control Charts
  164. 164. Process Capability, Cp & Cpk</li></ul>Tools<br />
  165. 165. Lean Six Sigma – Common Tools<br />24<br />Six Sigma<br />Statistical Methods<br />Sigma Calculation<br />Regression Analysis<br />Analysis of Means<br />Analysis of Variance<br />Control Plans<br />Design of Experiments<br />Common<br />Project Charter<br />Process Base lining<br />Poka-Yoke<br />Workplace Organisation 5’S<br />Procedure Documentation<br />Control Charts<br />Advanced SPC<br />Visual Management<br />Total Productive Maintenance<br />Process Mapping<br />Problem Solving Method<br />Quality Tools and Techniques<br />Lean<br />Lean transformation<br />Demand Flow Management<br />Cycle Time Reduction<br />Setup Reduction<br />Material Replenishment Models<br />Waste Identification<br />Product Segmentation<br />Takt Time/ Line Balancing<br />Kaizen Blitz<br />Value Tree<br />Value Stream<br />
  166. 166. Lean Six Sigma – From Project Selection to Benefit Realisation<br />
  167. 167. How do you generate improvement ideas? <br />26<br />Best Practices<br />Ideas from Other<br />Projects<br />Root Causes<br />Generate<br />Improvement<br />Ideas<br />Brainstorming<br />Project Goals<br />“Discoveries”<br />During Analysis<br />Performance<br />Targets<br />Benchmark<br />Ideas<br />
  168. 168. How is your project selection done?<br />27<br />Identify Value Levers<br />Identify Project Opportunities<br />Screen initial Opportunities<br />Scope & Define Projects<br />Prioritise Defined Projects<br /><ul><li>Identify value levers in the business
  169. 169. Strategic
  170. 170. Financial
  171. 171. Customer
  172. 172. Operational (Process)
  173. 173. Prioritise value levers
  174. 174. Translate Value Levers into Opportunity Areas
  175. 175. Translate Opportunity Areas into Project Ideas
  176. 176. Score each project as High / Med / Low for Benefit and Effort
  177. 177. Fill in Benefit / Effort Matrix
  178. 178. Review plotted results
  179. 179. Select highest priority opportunities for further analysis
  180. 180. Assign opportunities to project sponsors for project definition
  181. 181. Complete Draft Project Charters
  182. 182. Evaluate projects using Evaluation Criteria
  183. 183. Update Benefit / Effort Matrix
  184. 184. Review plotted results
  185. 185. Prioritise projects
  186. 186. Schedule project launches based on resource availability</li></li></ul><li>How do you prioritise & select projects?<br />28<br />Customer Impact<br />Process Impact<br />CTC Impact:<br />No Impact 1<br />Low Impact 2<br />Medium Impact 3<br />High Impact 4<br />Productivity Improvement:<br />< 10%1<br />10-25%2<br />25-50% 3<br />> 50% 4<br />People Impact<br />Work-load decrease:<br />< 40 man hours1<br />40 - 80 man hours 2<br />80 - 120 man hours 3<br />> 120 man hours 4<br />Financial Impact<br />Effort<br />Annual $EBIT Impact:<br /><10,000 1<br />10,000-25,000 2<br />25,000-75,000 3<br />>75,000 4<br />Business Effort:<br />>240 man hours1<br />160 – 240 man hours2<br />80-160Man hours 3<br />< 80 Man hours 4<br />Strategy Alignment<br />Quality of alignment<br />No alignment1<br />Low 2<br />Medium 3<br />High 4<br />
  187. 187. How do you do, Go / No Go criteria?<br />29<br />This is not a preferred Action<br />31%-50%<br />Check before starting<br />Ready to go!<br />Traffic Light ! <br />0%-30%<br />> 51%<br />
  188. 188. Evaluate & Rank <br />30<br />
  189. 189. Do you undertake stage-gate reviews?<br />31<br />Stop<br />Stop<br />Tollgate Review<br />Tollgate Review<br />Stop<br />Tollgate Review<br />Stop<br />Stop<br />Tollgate Review<br />Tollgate Review<br />
  190. 190. How do you perform benefit tracking?<br />32<br />
  191. 191. What roles exist in your LSS roll out?<br />33<br />Ownership<br />Execution<br />Sustainability<br />Master Black Belt<br /><ul><li>Delivers 6 Sigma training
  192. 192. Coach / Mentor / Facilitate
  193. 193. Lead s complex programs
  194. 194. Full-time</li></ul>Yellow Belts<br /><ul><li>Participates in GB / BB projects
  195. 195. Trained on selective tools
  196. 196. Analyses daily challenges
  197. 197. Part -time</li></ul>Top Management<br /><ul><li>Develops the BI strategy
  198. 198. Communicate BI Strategy
  199. 199. Manages BI stakeholders
  200. 200. Trained at YB Level</li></ul>Black Belt<br /><ul><li>Leads projects & teams
  201. 201. Lead s change program
  202. 202. Trained on 6 Sigma tools
  203. 203. Full-time</li></ul>White Belts<br /><ul><li>Participates in GB projects
  204. 204. Trained on selective tools
  205. 205. Analyses daily challenges
  206. 206. Part -time</li></ul>6 Sigma Proj. Sponsor<br /><ul><li>Leader / Process owner
  207. 207. Monitor projects
  208. 208. Sustain benefits
  209. 209. Trained at YB Level</li></ul>Green Belt<br /><ul><li>Leads projects
  210. 210. Participates in BB projects
  211. 211. Trained on selective tools
  212. 212. Part -time</li></ul>Manager<br /><ul><li>Dept / Section head
  213. 213. Project identification and selection
  214. 214. Trained at YB / GB Level</li></li></ul><li>Team Plan<br />34<br />
  215. 215. Lean Six Sigma – Roadmaps<br />
  216. 216. Kaizen Event - Roadmap<br />36<br />Lean / Kaizen Event<br />Sustain & Control<br />Diagnose<br />Plan<br />Project / Change Management<br />Stakeholder Management<br />Kaizen 1 <br />Diagnostics<br />Continuous Improvement (CI)<br />Kaizen 1 - Sustain<br />Business Improvement<br />Kaizen 1 <br />CI<br />Kaizen 2 - Sustain<br />Kaizen 1 <br />CI<br />Kaizen 3 - Sustain<br />Days<br />
  217. 217. Lean Project - Roadmap<br />37<br />Planning Execution<br />Monitor & Sustain<br />Diagnostic<br />Project & Change Management<br />Regular Stakeholder Expectations Review Meetings<br /><ul><li>Charter
  218. 218. Y=F(X)
  219. 219. Scope
  220. 220. Timeline
  221. 221. Priorities
  222. 222. Videos
  223. 223. SOP
  224. 224. Waste
  225. 225. Baseline
  226. 226. Identify Process Owner / Super-visor
  227. 227. Roles & Respon-sibilities
  228. 228. Daily Reviews
  229. 229. Benefit Review
  230. 230. Vol / Capacity
  231. 231. Metrics / KPI
  232. 232. Videos
  233. 233. Visual Mngt
  234. 234. 5S & 8W
  235. 235. Future SOP
  236. 236. Train & Test
  237. 237. QA Program
  238. 238. Change Mngt
  239. 239. Sign Off
  240. 240. Lessons Learned
  241. 241. Report Out
  242. 242. Issue / Risk Closure
  243. 243. Future Opportunities
  244. 244. Follow up Plan
  245. 245. Quality Assurance Reviews
  246. 246. Further Training & Development</li></ul>Business Improvement<br />7 Days<br />3 Days<br />10 Days<br />Diagnostics - 5 Weeks<br />
  247. 247. Lean Six Sigma - Roadmap<br />38<br />Project & Change Management<br />Trained BB / GB<br />Define (2 Wk)<br />Stakeholder Management<br />Measure (3 wk)<br />Analyse (2 Wk)<br />Business Improvement<br />Improve (3.5 Wk)<br />Control (1.5 wk)<br />Weeks<br />
  248. 248. DMAIC – Work Load Distribution<br />39<br />
  249. 249. DMAIC - High Level Overview<br />
  250. 250. DMAIC – 100,000 feet overview<br />41<br />
  251. 251. Define Phase – Key Elements<br />42<br />2. Review Historical Data<br />3. Create a Value Stream Map<br />1. Develop the Charter<br />SUPPLIER<br />INPUTS<br />PROCESS<br />VALUE ADDED ACTIVITIES<br />OUTPUTS<br />CUSTOMER<br />4. Develop a High-level Process Map<br />Manpower<br />Machinery<br />Material<br />Methods<br />Information<br />Environment<br />Products<br />Services<br />Billing Process<br />Order Process<br />Inventory Process<br />Shipping Process<br />4. Create SIPOC<br />5. As~Is Process Map<br />
  252. 252. Define Phase (Contd)<br />43<br />Problem Statement:<br />Delighters<br />Goal:<br />Business Case:<br />More Is Better<br />Scope:<br />Cost Benefit Projection:<br />Milestones:<br />Must Be<br />CUSTOMERS<br />SUPPLIERS<br />VOC<br /> Key Issue<br />CTQ<br />Outputs<br />Inputs<br />Process<br />Yield: 60%<br />Yield: 90%<br />Yield: 45%<br />Yield: 98%<br />Voice of the Customer<br />Business Case<br />Project Charter<br />Initial Process Mapping<br />
  253. 253. Measure Phase – Key Elements<br />44<br />100<br />%<br />Identify key metrics<br />Complete SIPOC<br />3. Operational Definitions<br />60<br />Frequency<br />55<br />SUPPLIER<br />INPUTS<br />PROCESS<br />VALUE ADDED ACTIVITIES<br />OUTPUTS<br />CUSTOMER<br />50<br />45<br />40<br />35<br />30<br />Manpower<br />Machinery<br />Material<br />Methods<br />Information<br />Environment<br />Products<br />Services<br />50<br />%<br />4. Data Collection<br />25<br />20<br />15<br />10<br />5<br />0<br />Forgot to Schedule<br />Crew on high priority<br />Facility not ready<br />Rainy Weather<br />Materials not found<br />Reasons <br />
  254. 254. Measure Phase (Contd)<br />45<br /> Display Data<br />Identify Process Capability<br />Identify the Metrics<br />LSL<br />USL<br />Cp<br />=<br />0.4<br />I<br />P<br />O<br />s<br />= <br />2.7<br />InputMeasures<br />ProcessMeasures<br />OutputMeasures<br />Measure<br />the<br />process<br />Validate Measurement<br />Systems<br />Data Collection Plan<br />Prioritise the Metrics<br />Data Collection Plan<br />UCL<br />Col<br /> #<br />1<br />2<br />3<br />4<br />5<br />6<br />1000<br />O1<br />O2<br />O3<br />O4<br />Inspector<br />A<br />B<br />What questions do you want to answer?<br />Sample #<br />1st Trial<br />2nd Trial<br />Diff<br />1st Trial<br />2nd Trial<br />Diff<br />X<br />I1<br />0<br />1<br />2.0<br />1.0<br />1.0<br />1.5<br />1.5<br />0.0<br />Operational Definition and Procedures<br />Data<br />FMEA<br />2<br />2.0<br />3.0<br />1.0<br />2.5<br />2.5<br />0.0<br />I2<br />What<br />LCL<br />3<br />1.5<br />1.0<br />0.5<br />2.0<br />1.5<br />0.5<br />Measure type/ <br />How <br />Related <br />Sampling <br />How/<br />-1000<br />I3<br />4<br />3.0<br />3.0<br />0.0<br />2.0<br />2.5<br />0.5<br />Data type<br />measured<br />conditions <br />notes<br />where <br />5<br />2.0<br />1.5<br />0.5<br />1.5<br />0.5<br />1.0<br />I4<br />Totals<br />10.5<br />9.5<br />3.0<br />9.5<br />8.5<br />2.0<br />10<br />20<br />30<br />Averages<br />2.1<br />1.9<br />0.6<br />1.9<br />1.7<br />0.4<br />Sum<br />Sum<br />3.6<br />4.0<br />R<br />R<br />Other<br />D<br />B<br />F<br />A<br />C<br />E<br />1.8<br />A<br />B<br />A<br />2.0<br />B<br />X<br />X<br />How will you ensure <br />What is your plan for <br />consistency and stability?<br />starting data collection?<br />How will the data be displayed? <br />
  255. 255. Analyse Phase – Key Elements<br />46<br />1. Develop Detailed “As-Is” Process Map<br />3. Identify Root Causes<br />2. Conclusion on existing process:<br /><ul><li>Hub does not invoice the good until 30 days of receipt of goods to the loading dock
  256. 256. Misys does not invoice Cache’ key until installed Depot does not invoice for the goods delivered until 50 days from shipment date
  257. 257. Inter-state travel take 10+ days as compared to air freight</li></li></ul><li>Analyse Phase (Contd)<br />47<br />VA<br />NVA<br />22<br />O<br />O<br />21<br />O<br />20<br />O<br />O<br />n<br />n<br />19<br />O<br />O<br />n<br />n<br />18<br />X<br />O<br />X<br />n<br />X<br />17<br />n<br />n<br />O<br />X<br />16<br />X<br />O<br />n<br />15<br />X<br />X<br />n<br />14<br />X<br />n<br />13<br />X<br />12<br />1<br />2<br />3<br />4<br />5<br />6<br />7<br />8<br />9<br />10<br />Chi-Square<br />t-test<br />c<br />²<br />ANOVA<br />Y<br />Regression<br />X<br />1<br />Process Door<br />Data Door<br />Cause & Effect<br />.<br />Hypothesis-Testing<br />Regression Analysis<br />Design of Experiments<br />
  258. 258. Improve Phase – Key Elements<br />48<br />Reduced from 45 to 5 days<br />1. SMEs accelerate parallel tasks<br />3. Executed Pilot<br /><ul><li>Use new process for before and after shipment
  259. 259. Upon shipment check that the customer is invoiced immediately
  260. 260. Recorded hours spent
  261. 261. Recorded time stamp when PO received
  262. 262. Recorded time stamp when goods are shipped</li></ul>4. Reviewed Pilot<br /><ul><li>Black Belt and process owner review the results
  263. 263. Process owner decided to continue with Pilot for all new process changes</li></ul>2. Improve new process and check data<br /><ul><li>Shipped data
  264. 264. Customer receipt of goods (time & correct delivery location
  265. 265. Evaluate the correct routines are followed</li></li></ul><li>Improve Phase (Contd)<br />49<br />Plan Implementation <br />Generate Solutions<br />A<br />4<br />B<br />1<br />C<br />3<br />D<br />2<br />2<br /> 4<br /> 8<br /> 6<br /> 10<br /> 1<br />3<br /> 5<br /> 7<br /> 9<br />A<br />B<br />C<br />D<br />G<br />E<br />F<br />G<br />I<br />H<br />J<br />Perform Cost-Benefit Analysis<br />Run Pilot <br />Full scale <br />Test <br />Original<br />Assess Risks<br />Select the Solution<br />FMEA<br />
  266. 266. Control Phase – Key Elements<br />50<br />1. Standardise the Process<br />Process Change<br /><ul><li>New process documented and performed training
  267. 267. Team stored the new process in the Quality Library</li></ul>Process Change<br />2. Institute Control Metrics<br /><ul><li>Measure Cycle Time from receipt of order to shipment
  268. 268. Measure total hours expended</li></li></ul><li>Control Phase (Contd)<br />51<br />4. Validate measurement system<br />3. Measure the process<br /><ul><li>Widgets Shipped
  269. 269. Collect date entered into spreadsheet
  270. 270. Validate against Avnet tracking email
  271. 271. PO Received</li></li></ul><li>Control Phase (Contd)<br />52<br />5. Hand over process monitoring to the Process Owner<br />6. Did we meet our goals?<br />Reduced cycle time by 30-60 days<br />Reduce the cycle time.<br />
  272. 272. Control Phase (Contd)<br />53<br />Work <br />Charac-<br />Control<br />Immediate<br />Permanent <br />Instructions<br />Limits<br />teristics<br />Fix <br />Fix<br />Results<br />Learning's<br />•<br />•<br />•<br />Recommendations<br />next<br />Date of Issue:<br />Issued by:<br />Approved by:<br />Revision Date<br />Signature<br />Reason<br />Product Name<br />Process Name<br />Process Code #<br />Control/Check Points<br />Response to Abnormality<br />Notes<br />Flowchart<br />Code #<br />Method<br />Who<br />Who<br />1<br />2<br />12<br />Training<br />Operating <br />Curriculum<br />Procedures <br />Manual<br />Training<br />Manual<br />s<br /> = 2.7<br />Fill to here<br />Cp<br />= 0.4<br />UCL<br />LSL<br />USL<br />After<br />Before<br />}<br /> Improvement<br />s<br />= <br />3.7<br />LCL<br />Cp<br />=<br />1.4<br />A2<br />A1<br />A3<br />A4<br />A1<br />A2<br />A3<br />A4<br />Before<br />After<br />Good<br />}<br />Improvement<br />}<br />Remaining Gap<br />Step 4 changes <br />Target<br />implemented<br />Key Learning<br />Closure<br />Document & Standardise<br />QC Process Chart<br />Process<br /> Owner<br />Evaluate Project Results<br />.<br />Ownership & Monitoring<br />Process Change<br />Management<br />.<br />
  273. 273. Dashboard – Linkage to Strategy<br />54<br />Process Capability of C2<br />USL<br />Process Data<br />Within<br />LSL<br />*<br />Overall<br />Target<br />*<br />Potential (Within) Capability<br />USL<br />9<br />Cp<br />*<br />Sample Mean<br />6.21762<br />CPL<br />*<br />Sample N<br />100<br />CPU<br />0.41<br />StDev(Within)<br />2.25841<br />Cpk<br />0.41<br />StDev(Overall)<br />2.39212<br />Overall Capability<br />Pp<br />*<br />PPL<br />*<br />PPU<br />0.39<br />Ppk<br />0.39<br />Cpm<br />*<br />12<br />10<br />8<br />6<br />4<br />2<br />Observed Performance<br />Exp. Within Performance<br />Exp. Overall Performance<br />PPM < LSL<br />*<br />PPM < LSL<br />*<br />PPM < LSL<br />*<br />PPM > USL<br />130000.00<br />PPM > USL<br />108973.12<br />PPM > USL<br />122385.02<br />PPM Total<br />130000.00<br />PPM Total<br />108973.12<br />PPM Total<br />122385.02<br />Cost<br />Quality<br />Machine Uptime<br />Cost Per Widget<br />Actual<br /> $51.25<br />Actual<br /> 2.0%<br />Target<br /> $32.50<br />Target<br /> 3.5%<br />Cost Per Employee<br />Service Metrics<br />Actual<br /> $91.50<br />Actual<br /> 4.5<br />Target<br /> $78.39<br />Target<br /> 9.0<br />Speed<br />Customer Satisfaction<br />Mean Time to Repair<br />Overall <br />Actual<br /> 4.5 hrs<br />Actual<br /> 4.8<br />Target<br /> 6 hrs<br />Target<br /> > 4 of 5<br />Response Time<br />On Time Delivery<br />Actual<br /> 4.5<br />Actual<br /> 1 hr<br /> 4.5<br />Target<br />Target<br /> 2 hrs<br />
  274. 274. Sustain Improvements<br />The goal of this process improvement step is to make sure that your team’s implemented changes or improvements did indeed fix the problem, that it did not break anything else, and that the problem stays fixed.<br />Watch Out !!!! The tendency is for people to go back to doing things they way they’ve always done them.<br />55<br />
  275. 275. 56<br />“quote.” <br />- a<br />
  276. 276. 57<br />Good Luck<br />http://www.linkedin.com/in/anandsubramaniam<br />

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