Lean Six Sigma Optimization

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Lean Six Sigma Optimization

  1. 1. Edward C. Lai & Associates Introduction to Lean Six Sigma Optimization (LSSO) © 2009, Edward C. Lai and Associates. OPTIMAL THINKING® is a registered trademark of The World Academy of Personal Development Inc. All Rights Reserved. Page 1
  2. 2. Edward C. Lai The Burning Platform & Associates Why do you need to change? © 2009, Edward C. Lai and Associates. OPTIMAL THINKING® is a registered trademark of The World Academy of Personal Development Inc. All Rights Reserved. Page 2
  3. 3. Edward C. Lai Some Common Burning Platforms & Associates • Budgets too tight to perform needed tasks • Increased product or service demands • Long process cycle time • Escalating costs • Dissatisfied customers • Employees frustrated and overworked What causes you, your boss or customer to lose sleep? © 2009, Edward C. Lai and Associates. OPTIMAL THINKING® is a registered trademark of The World Academy of Personal Development Inc. All Rights Reserved. Page 3
  4. 4. Edward C. Lai What is Lean Six Sigma Optimization? & Associates Lean Six Sigma Optimization (LSSO) is a structured approach for consistently listening to your customers and optimizing resources and processes to best meet the customers' needs. LSSO focuses on the elimination of waste and the minimization of variability in providing the best product or service to the customer. Decision making is based on facts, data and Optimal Thinking® while results are monitored with the best performance metrics to ensure maximum success. © 2009, Edward C. Lai and Associates. OPTIMAL THINKING® is a registered trademark of The World Academy of Personal Development Inc. All Rights Reserved. Page 4
  5. 5. Edward C. Lai Optimal Effectiveness and Efficiency & Associates • Optimal Effectiveness : Working on the right thing at the right time • Optimal Efficiency : Doing it right the first time Doing the right thing right at the right time © 2009, Edward C. Lai and Associates. OPTIMAL THINKING® is a registered trademark of The World Academy of Personal Development Inc. All Rights Reserved. Page 5
  6. 6. Edward C. Lai LSSO Benefits & Associates • Optimal Cycle Time • Best Quality • Lowest Cost • Best Customer Satisfaction © 2009, Edward C. Lai and Associates. OPTIMAL THINKING® is a registered trademark of The World Academy of Personal Development Inc. All Rights Reserved. Page 6
  7. 7. Edward C. Lai LSSO History & Associates • 1930’s : Scientific management (Industrial Engineering) • 1950’s : Statistical process improvement methods (Dr. W. Edwards Deming / Bonnie Small) • 1980’s : Total Quality System (TQS) Six Sigma (Motorola) (Bill Smith) Toyota Production System (TPS) (Taiichi Ohno ) • 1990’s : Total Quality Management (TQM) Lean Manufacturing (Womack and Jones) Business Process Reengineering (BPR) (Hammer) Continuous Measurable Improvement (cmi) • 2000’s : Lean Six Sigma (LSS) Continuous Service Improvement • 2009 : Lean Six Sigma Optimization (LSSO) © 2009, Edward C. Lai and Associates. OPTIMAL THINKING® is a registered trademark of The World Academy of Personal Development Inc. All Rights Reserved. Page 7
  8. 8. Edward C. Lai Systems Concept & Associates Process Input Output Feedback • Each system has input, output, process and feedback • Each system has smaller systems inside • Each system is part of a bigger system • Systems are inter-related If any one of the parts is suboptimal, the whole system is suboptimal. © 2009, Edward C. Lai and Associates. OPTIMAL THINKING® is a registered trademark of The World Academy of Personal Development Inc. All Rights Reserved. Page 8
  9. 9. Edward C. Lai LSS Examples & Associates • Federal Express : delivers overnight • Lens Crafters : Prescription glasses in an hour • L.L. Bean : same day shipping • Southwest Airlines : seat assignment at gate • Del Computers : custom PC in a week • eBay : lean trading • Minnesota HMO : sees patients 1 to 2 days of call • Digital River : software purchase through download • Delco Electronics : Synchronous workshops in 3 days • Banking : express tellers, single line/multiple servers • City of Ft. Wayne, IN : link LSS to city strategy, improved building permit process 47 to 12 days Are they optimal? Are they continuously optimizing? © 2009, Edward C. Lai and Associates. OPTIMAL THINKING® is a registered trademark of The World Academy of Personal Development Inc. All Rights Reserved. Page 9
  10. 10. Edward C. Lai Optimization Types of Optimization & Associates Continuous Optimization Time Combination Breakthrough Optimization Time Time © 2009, Edward C. Lai and Associates. OPTIMAL THINKING® is a registered trademark of The World Academy of Personal Development Inc. All Rights Reserved. Page 10
  11. 11. Edward C. Lai LSSO Process (DMAOC) & Associates Cycles of Optimal Learning © 2009, Edward C. Lai and Associates. OPTIMAL THINKING® is a registered trademark of The World Academy of Personal Development Inc. All Rights Reserved. Page 11
  12. 12. Edward C. Lai Some LSSO Tools & Associates • 7 Common Quality Optimization Tools – Pareto Chart – Histogram – Scatter Diagram – Line Graph and Run Chart – Check Sheet – Control Chart – Cause and Effect Diagram • Cycle Time Optimization © 2009, Edward C. Lai and Associates. OPTIMAL THINKING® is a registered trademark of The World Academy of Personal Development Inc. All Rights Reserved. Page 12
  13. 13. Edward C. Lai 7 Common Quality Optimization Tools & Associates Pareto Chart Histogram Scatter Diagram Line Graph / Run Chart Check Sheet Control Chart Cause and Effect Diagram © 2009, Edward C. Lai and Associates. OPTIMAL THINKING® is a registered trademark of The World Academy of Personal Development Inc. All Rights Reserved. Page 13
  14. 14. Edward C. Lai Definition & Associates Cycle Time Optimization (CTO) is an operating philosophy of maximizing the efficiency of suboptimal value-added activities while minimizing non-value-added activities and time for the best quality, cost and responsiveness to customer needs. © 2009, Edward C. Lai and Associates. OPTIMAL THINKING® is a registered trademark of The World Academy of Personal Development Inc. All Rights Reserved. Page 14
  15. 15. Edward C. Lai Cycle Time Optimization Chart & Associates Value-adding Activities Optimal Non-Value-adding Suboptimal and Time Activities © 2009, Edward C. Lai and Associates. OPTIMAL THINKING® is a registered trademark of The World Academy of Personal Development Inc. All Rights Reserved. Page 15
  16. 16. Edward C. Lai Some Suboptimal Examples & Associates Case (1) : Excessive SVA Activities Case (2) : Excessive Queue Time Value-adding Value-adding Activities Activities Optimal Optimal Non-Value-adding Non-Value-adding Suboptimal and Suboptimal and Activities Activities Case (3) : Continuous Optimization Case (4) : Combination Value-adding Value-adding Activities Activities Optimal Optimal Non-Value-adding Non-Value-adding Suboptimal and Suboptimal and Activities Activities © 2009, Edward C. Lai and Associates. OPTIMAL THINKING® is a registered trademark of The World Academy of Personal Development Inc. All Rights Reserved. Page 16
  17. 17. Edward C. Lai Principles in Process Optimization Design & Associates 1. Perform activities in parallel as early as possible 2. Set up common priority system 3. Minimize variability in the system 4. Minimize queue time 5. Minimize suboptimal and non-value-adding activities 6. Optimize value-adding activities 7. Minimize errors (Do it right the first time) 8. Detect errors at the source 9. Set up feedback system for timely corrective action 10. Set up optimal process-oriented performance metrics and measurement system 11. Perform best process failure mode and effect analysis © 2009, Edward C. Lai and Associates. OPTIMAL THINKING® is a registered trademark of The World Academy of Personal Development Inc. All Rights Reserved. Page 17
  18. 18. Edward C. Lai Root Cause Analysis & Associates Areas to consider : • People • Process • Equipment • Material • Measurement • Environment © 2009, Edward C. Lai and Associates. OPTIMAL THINKING® is a registered trademark of The World Academy of Personal Development Inc. All Rights Reserved. Page 18
  19. 19. Edward C. Lai Cycles of Optimal Learning & Associates Optimization Focus, learning and continuous optimization over time produces the best results. © 2009, Edward C. Lai and Associates. OPTIMAL THINKING® is a registered trademark of The World Academy of Personal Development Inc. All Rights Reserved. Page 19
  20. 20. Edward C. Lai Summary & Associates • Lean Six Sigma Optimization (LSSO) comes from a long history of improvement experiences • Key focus: customer, results, systems concept, processes, tools, facts & data, people with Optimal Thinking® as a core • Optimization can be continuous and breakthrough • DMAOC: LSSO process for cycles of learning • Many LSSO tools: just-in-time training on projects • Focus, learning and continuous optimization over time produces the best results © 2009, Edward C. Lai and Associates. OPTIMAL THINKING® is a registered trademark of The World Academy of Personal Development Inc. All Rights Reserved. Page 20
  21. 21. Edward C. Lai & Associates For more information on Lean Six Sigma optimization, please contact : Ed Lai 310-365-0629 elai001@aol.com © 2009, Edward C. Lai and Associates. OPTIMAL THINKING® is a registered trademark of The World Academy of Personal Development Inc. All Rights Reserved. Page 21

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