Integrating Lean & Six Sigma with ISO 9000:2000 & ISO/TS16949:2002 Achieving Continual Process Improvement
Omnex provides training, consulting and software to the international market with offices in the USA, Brazil, Canada, India, Mexico, Venezuela, China (PRC) and Thailand. Omnex offers over 25 training courses in business and quality management systems worldwide.
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President of Omnex Management and Engineering Consultants, LLC, a global training and consulting company headquartered in Ann Arbor, Michigan, Dave Watkins has a wide range of executive and managerial experience in general and automotive manufacturing, as well as production and distribution management, in a variety of industries including custom molded thermo sets and thermosetting materials, chemical processing, metal fabrication and man-made fibers.
He has provided training and consulting services in the U.S. and in all major international markets, primarily to senior and executive management groups, in the strategic implementation of integrated management systems incorporating QS/ISO 9001:2000, ISO/TS 16949:2002, QOS/BOS, Product Development & Launch (NPD), and lean enterprise solutions.
Dave’s focus is on effectively employing approaches that enhance the client’s ability to create value for customers and stockholders; he is particularly adept at the integration of quality and business management systems to enhance overall performance and to achieve sustainable competitive advantage with significant bottom line impact.
Dave has delivered papers on a variety of topics in the U.S., India, Bahrain, Thailand and China.
Having pioneered the application of these approaches in non-manufacturing companies, Dave has also authored or co-authored most of Omnex’s seminars for service companies, including ISO 9001:2000 for Service, Advance Quality Planning (AQP) for Service, and QOS for Service. He has trained many of Ford Motor Company’s STAs, Buyers and Suppliers in ISO 9001, QOS, AQP/APQP and Q1 2002 (both manufacturing and service).
His education includes a BA from Widener University and numerous professional courses. Dave has served on the Board of Directors of the Illinois Manufacturers’ Association, as a Trustee for the IMA’s Education Foundation, and as a Trustee for Northeastern Illinois University Foundation.
Ron Mitchell is Director of Lean/Six Sigma Services at Omnex. He is a trainer and consultant with over twenty years experience-helping clients to understand and apply Lean Manufacturing and Quality Improvement Technologies. Ron studied the Toyota Production System at NUMMI, the joint General Motors and Toyota Motors Corporation facility in Fremont, California; and, was part of the team that helped launch Synchronous Manufacturing in General Motors. Ron received his training in Quality Management from Dr. W.E. Deming, Dorian Shainin and through The Crosby Quality College. Ron is a Lean Manufacturing Black Belt, a Six Sigma Black Belt and a candidate for Six Sigma Master Black Belt. Ron holds Bachelor’s Degrees in Industrial and Organizational Psychology and a Master’s degree in Organizational Development.
Rationale for Quality Management Systems from ISO 9001:2000
Enhance customer satisfaction
Analysis of customer requirements
Definition of processes
Framework for continual improvement
Provides confidence in the ability to provide consistent products and services
Omnex Approach: Why Integrate Lean/Six Sigma?
Achieve and sustain competitive advantage
Employ system approach across the entire enterprise to determine, deploy and achieve Strategic Objectives
Employ a dynamic, managed process for continual improvement in products and processes
Maximize bottom-line impact
Eight Quality Management Principles
Customer focused organization
Involvement of people
Systems approach to management
Factual approach to decision making
Mutually-beneficial supplier relationship
QMS Process Model
Process Focus Versus Functional Focus Processes, not functions, Drive Performance
Processes vs. Functions
We are organized functionally
Maximize use of limited knowledge & skills
Standardize methods and activities
Commensurate with design authority concept
We work in processes
Do not recognize functional boundaries
Are self defining (making coffee is the same regardless of the functional organization but differs by customer expectations)
Fail if any part of the functional input is incorrect or late
Processes are at different levels of maturity
Characteristics of a Process
A process can be identified by a series of unique, but consistent, characteristics. There are six characteristics of a process that are mandatory for effective quality management.
A process owner exists
The process is defined
The process is documented
The linkages of the process are established
The process is monitored and improved
Records are maintained
Performance Management Key performance objectives cascade down while performance data pass upward for analysis and action.
The organization shall continually improve the effectiveness of the quality management system through the use of the quality policy, quality objectives, audit results, analysis of data, corrective and preventive actions and management review.
What is your process for managing continual improvement?
Business Excellence Model Customer Satisfaction Customer Expectation & Requirements Interested Parties Knowledge Management
Customer Expectation & Requirements Plan Knowledge Management Interested Parties Dynamic Continual Improvement Customer Satisfaction Do Check Act Do Check Standardize Study Act Lean Six Sigma
Integrated Lean / Six Sigma
Six Sigma Quality Six Sigma is a Standard of Performance. It means no more than 3.4 Defects per Million Opportunities DPMO 2 308,537 69.1 % 3 66,807 93.3 % 4 6,210 99.4 % 5 233 99.97 % 6 3.4 99.99966 % Defects per Million Opportunities Process Capability RTY Rolled Throughput Yield (Long Term)
The Lean Enterprise
Lean companies use less of everything than do more traditionally managed companies:
half the human effort in the factory,
half the manufacturing space,
half the investment in tools,
half the engineering hours to develop a new product in half the time,
less than half the inventory,
General Motors Framingham versus Toyota Takaoka versus NUMMI Fremont, 1987 Source: IMVP World Assembly Plant Survey 2 days 7.0 45 19 NUMMI Fremont Toyota Takaoka GM Framingham 2 hours 2 weeks Inventories of Parts (average) 4.8 8.1 Assembly Space per Car 45 135 Assembly Defects per 100 Cars 16 31 Assembly Hours per Car
More than Ford, GM & DaimlerChrysler AG.... combined.
On 10% market share compared with 60% for Ford, GM & Chrysler combined.
Toyota’s market capitalization (Shareholder Value) of $80 Billion is $10 Billion more than Ford, GM and DaimlerChrysler AG combined.
L/SS Focuses on the Biggest Cost Levers
Accounting Human Resources Operations Purchasing Sales Strategic Measures – Voice of The Customer Process Variation Process Measures Voice of the Process Leadership Team Objectives Lean / Six Sigma Integrated With BOS Projects
Study the Process – Value Stream Mapping
To design and communicate the Lean / Six Sigma Vision – the Future State .
To identify and quantify the improvement opportunities – the gap between the current state and the future state.
To develop project plans for achieving the future state (integrates Lean & Six Sigma improvement projects).
To monitor progress toward the Future State.
Profits Products Process Projects People Scorecard Scorecard Scorecard Scorecard Scorecard BOS Value Stream Mapping Continuous Flow Supermarket Pull Six Sigma Quality SMED/TPM/Five S Standards Education Training Resources Feedback Planning for Improvement
Profits Products Process Projects People Scorecard Scorecard Scorecard Scorecard Scorecard Achieving Improvement New Knowledge, Skill & Attitudes New Methods, Policies & Procedures Lean Productivity Six Sigma Quality Improved Satisfaction Increased Sales Increased Margins
Omnex Lean/Six Sigma Approach:
Provides a systemic approach for continual process improvement
Is a managed process – Champions/BB/GB Structure
Develops the culture that embraces continual improvement