Lt module 01 ls overview - rev b


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Overview of LeanSigma and tools used.

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  • Any time you have variation, you will need these three buffers to deal with it.
  • Toyota was constrained – limited resources – “ What do we need to get the job done?” Still do 1500 Ace or Kaizen events / year. WHY? ENTROPY…processes are improved, but eventually become unorganized again, think of your garage, or your closet, when was the last time you cleaned it?
  • Any time you have variation, you will need these three buffers to deal with it.
  • Current defect We are looking for this just Emphasize the magnitude to the difference between various sigma levels Not everything needs to be
  • Perscriptions = hand-writing
  • Your charter should be clear, concise, and written in language that can be understood by people who are not involved in the project. Everyone on the team should be able to articulate the charter, particularly the business impact, or financial benefit, of the work that you are doing. Review the charter at the beginning of team meetings to make sure it is still relevant and correct. The Improvement Team and Champion should continue to further clarify the charter as work progresses. It is important that the charter, at all times, reflects the best understanding of the project. The following page is a suggested template for a project charter. *SLT = Senior Leadership Team
  • Lt module 01 ls overview - rev b

    1. 1. Lean Technician Program LeanSigma Overview © PPL Corporation 2011© PPL Corporation 2011
    2. 2. Objectives At the conclusion of this module you will be able to:  Define the term Lean  Define the term Six Sigma  Understand how LeanSigma is: – A Philosophy – A Methodology – A Measure – A Culture  Discuss how LeanSigma is aligned with business and individual objectives  Discuss how Lean and Six Sigma work together to optimize processes  Understand some of the tools and measures  Understand how LeanSigma makes our jobs easier!© PPL Corporation 2011
    3. 3. Does this ever occur? Question Time? • Are long working hours Common? • Is rework (doing the same task multiple times) a fact of life? • Do employees spend a lot of time compiling, re-compiling, editing? • Is there more than one way to perform a task? • Has the company grown without changing practices? • Have “Band-aids” been applied to areas that are broken? • Do you have standardized procedures? • Do you implement best practices? • Do employees understand how their role affects the process? • Do people communicate the right information at the right time to the right people?© PPL Corporation 2011
    4. 4. What is LeanSigma Designed to do?  Ensure highly effective World Class processes that are cost competitive and consistent with customers needs  Implement and Sustain change initiatives to improve performance  Lead initiatives to reduce operating costs to industry leading levels  Develop and implement blueprint for a World Class LeanSigma Enterprise – common processes, measurements and systems – common training and skill requirements© PPL Corporation 2011
    5. 5. World Class Enterprise 85% 15% Value Typical Value-Adding** Non Value Adding (NVA) Adding ratio 87.5% 12.5% If focus is only on improving Value-Adding NVA VA operations 50% 50% Companies decrease lead time rapidly by reducing non value- NVA VA adding activity! Lead Time© PPL Corporation 2011
    6. 6. Learning Philosophy People tend to support what they help create; Tell Me and I Will Forget Show Me and I Will Remember Involve Me and I Will Understand© PPL Corporation 2011
    7. 7. There is no I in Team?  The vision should be an integrated business system that links people and processes across the entire value stream ( Series of activities and materials ) “Improvement in Isolation is Not Effective” Sales & Engineering SCM Shop Floor Production Marketing Quality Information Human Suppliers Systems Systems Resources CUSTOMER SERVICE© PPL Corporation 2011
    8. 8. Lean Thinking  TransactionalSigma Lean Thinking means challenging the existing administrative processes and practices that: – Are no longer applicable in a Lean Environment, and/or – Support business needs that no longer exist, and/or – Are complex and require simplification.  The following slides list typical questions that should be asked to generate ideas for LeanSigma Transactional Teams.© PPL Corporation 2011
    9. 9. LeanSigma Thinking  Sales, Marketing, Order processing – What is the value to the organization in having complete and accurate information in the quoting process? – What is the cost of selling products and services that do not fit well in the production value stream? – How can you reduce the number of order entry transactions? – Can you eliminate manual interfaces by some means of electronic data interchange methodology? – What would be the effect of reducing the skills required to perform order processing using work simplification and standardization?© PPL Corporation 2011
    10. 10. LeanSigma Thinking  Human Resources – What would be the benefit of reducing the effort associated with payroll-related activities such as processing and correcting time cards? – What would be the benefit to the organization of simpler, more frequent employee reviews focused on value stream performance? – How can compensation practices be changed to reinforce lean behaviors such as teamwork, standardized work, and cross training? – What would be the impact to the organization on employee retention of improving the screening, hiring, and orienting process?© PPL Corporation 2011
    11. 11. LeanSigma Thinking  Supply Chain – Are there better ways to control inventory that require less effort while providing the desired results? Using Visual Management? – How you reduce inventory transactions? What will be the impact of reduced inventory transactions on the quality of data and information? – What activities will change with the incorporation of vendor managed inventories? – What is the impact on the value stream if you eliminate purchase orders? – How can you use the newly available time of purchasing and inventory management personnel to improve supplier performance?© PPL Corporation 2011
    12. 12. LeanSigma Thinking  Accounting – What is the time and effort required to perform month-end closing activities? – How will more real time financial and accounting information benefit the decision making process and the organization in general? – What changes are required in the accounting process to support a lean transformation of manufacturing? – What would be the impact to the organization if the accounting function reduced its portion of the order-to-cash process?© PPL Corporation 2011
    13. 13. © PPL Corporation 2011
    14. 14. What is Lean?  Lean is the elimination of anything not absolutely required to deliver a quality product or service, on time, to our customers.  Lean focuses on improving process flow.  Lean is a means of driving process standardization.  Lean drives work at the pull of the customer.© PPL Corporation 2011
    15. 15. Lean Focuses on Waste  All Waste degrades performance  There are 8 Primary Sources of Waste: − Defects Sources of waste can be: − Over production − Waiting − Not Using Talent • Identified − Transportation − Inventory • Quantified and − Motion prioritized − Extra Processing • Eliminated or greatly reduced  Lean eliminates waste, improving process Speed© PPL Corporation 2011
    16. 16. History of Lean  Taiichi Ohno of Toyota was the primary architect  Started with a factory/manufacturing orientation  Developed to systematically attack the eight types of muda (waste)  Tools and methods evolved by trial and error over decades  The result was the Toyota production system; the basis of all lean systems© PPL Corporation 2011
    17. 17. © PPL Corporation 2011
    18. 18. What is Six Sigma? Six Sigma is a philosophy for managing process improvement. Six Sigma is a means of continuously improving to meet customer needs. Six Sigma is a method for reducing process variation and improving process stability. Six Sigma is a measurement of defects and variation.© PPL Corporation 2011
    19. 19. Six Sigma Focuses on Variation  All variation degrades performance Sources of variation can be:  Variation buffers include: – Inventory – Time – Extra Capacity • Identified  Not all variation is bad • Quantified and – New products – New services prioritized  Six Sigma focuses on – Variation due to process • Eliminated or – Variation due to flow greatly reduced  Six Sigma improves Stability and Accuracy© PPL Corporation 2011
    20. 20. History of Six Sigma  Originated in Motorola in the mid ’80’s – Lots of tools, but no method for solving problems  Six Sigma Black Belt methodology began in late 80’s/early 90’s.  Many companies have embraced Six Sigma: – Allied Signal – 1994 – The Stanley Works – 2004 – Air Products – Prior to 2000 – GE – 1996 – Bank of America - 2002  Strategically driven program with top down projects that yield high Return on Investment  Follows LeanSigma roadmap to identify problem’s root causes and implement improvements© PPL Corporation 2011
    21. 21. Sigma: The Measure LeanSigma the Methodology, uses Sigma the Measure to Quantify Process Performance© PPL Corporation 2011
    22. 22. Sigma: The Measure Cost of Quality – total costs of quality issues to products, process, Yield DPMO COQ Sigma opportunities and customers 99.9997% 3.4 <10% 6 World Class 99.976% 233 10-15% 5 99.4% 6,210 15-20% 4 Industry Average 93% 66,807 20-30% 3 65% 308,537 30-40% 2 Non Competitive 50% 500,000 >40% 1 Source: Journal for Quality and Participation, Strategy and Planning Analysis What is 15 - 20% of Revenue worth to you?© PPL Corporation 2011
    23. 23. Understanding LeanSigma LevelsSay you played 100 rounds of golf per year…what would a Six Sigma be in your game? 2 sigma - youd miss 6 putts per round 3 sigma - youd miss 1 putt per round 4 sigma - youd miss 1 putt every 9 rounds 5 sigma - youd miss 1 putt every 2.33 years 6 sigma - youd miss 1 putt every 163 years© PPL Corporation 2011
    24. 24. What Does LeanSigma Mean In Your Daily Life? 99% Good (3.8 Sigma) 99.99966% Good (6 Sigma) Postal System Postal System 20,000 Lost Articles of Mail / Hr 7 Lost Articles of Mail / Hr Airline System Airline System Two Short-Long Landings / Day 1 Short-Long every 5 Years Medical Profession Medical Profession 200,000 Wrong Drug 68 Wrong Drug Prescriptions / Week Prescriptions / Week© PPL Corporation 2011
    25. 25. What Does LeanSigma Mean Your Daily Life? PPM Prescription Writing Tax Advice Restaurant Bills 1,000,000 Payroll Processing 100,000 10,000 Baggage Handling 1,000 100 10 Airline 1 Safety Rate 1 2 3 4 5 6 7 Sigma Level© PPL Corporation 2011
    26. 26. Lean Removes Waste Six Sigma Optimizes Removes Waste Inputs Process Outputs Removes Variation© PPL Corporation 2011
    27. 27. Why Six Sigma + Lean?  Traditional Six Sigma deals with Variation: “How can we eliminate process variation and defects?”  Lean strategies look at Speed: “How can we do the work faster and more efficiently?”  Not all projects need all the tools. Cost Triple Constraint Delivery Quality© PPL Corporation 2011
    28. 28. Why Lean + Six Sigma? Lean Six Sigma • Waste Elimination • Variation Reduction • Standard Work • Scrap / Rework Elimination • Flow • Process Optimization • Customer PULL • Process Control STABILITY & SPEED ACCURACY LEAN + SIX SIGMA = A POWERFUL COMBINATION© PPL Corporation 2011
    29. 29. LeanSigma Benefits Our Company:  Financial savings  Better cash flow  Increased revenue  Waste, defect and variation reduction  Improved efficiency  Higher skilled workforce  Commonality – tools, language Our Customers:  Requirements consistently met  Higher quality  Consistent on time delivery  Higher satisfaction© PPL Corporation 2011
    30. 30. LeanSigma is… ….A Philosophy that – Focuses on continuous organizational improvement – Institutes data driven decision making – Covers the whole business value stream – Aligns projects with strategy – Drives big results and ….A Methodology that – Is based on Lean and Six Sigma tools – Provides a problem solving roadmap – Uses a set of data driven tools to measure process performance and identify critical process drivers© PPL Corporation 2011
    31. 31. LeanSigma is…. …a simple, unique, proven and lasting approach for improving our business performance based on:  Alignment of the customer, strategy, processes and people  Big, measurable business results  Selective but broad deployment of advanced quality and statistical tools© PPL Corporation 2011
    32. 32. LeanSigma Focuses on Processes “85% of the reasons for failure to meet customer requirements are related to deficiencies in systems and processes… rather than the employee. The role of management is to change the process rather than badgering individuals to do better.” - W. Edwards Deming© PPL Corporation 2011
    33. 33. Changing The DecisionMaking Processes Decision Making Types of Problems Path You Will Normally Solve 1. Intuition, gut feel, I think… Simple 2. We have data and look at it 3. We make graphs / charts of the data 4. We use advanced statistical tools to evaluate the data Complex How Many Times Have Your Heard This? “I Think The Problem Is…” © PPL Corporation 2011
    34. 34. Roles and Responsibilities Projects / Team Direction Black Belt Green Belt Support Strategy / Champion Annual Operating Lean Techs Plan Team Members Reporting Master Black Belt Executive Team© PPL Corporation 2011
    35. 35. The Roadmap Define Measure Analyze Improve Control Initiate the  Understand the  Analyze Data to  Verify Critical  Finalize the Project Process Prioritize Key Inputs Using Control System Input Variables Planned Define the  Evaluate Risks  Verify Long Experiments Process on Process  Identify Waste Term Capability Inputs  Design Determine Improvements Customer  Develop and Requirements Evaluate  Pilot New Measurement Process Define Key Systems  Lean Tool Process Output Variables  Measure Applied Current Process Performance © PPL Corporation 2011 3 - 4 weeks 4 – 6 weeks On-going
    36. 36. Using Lean Tools Within the LeanSigma Roadmap  Cell Design  Kanban / Pull  Mistake Proofing  Baseline analysis  Improvement Events  Process observation  5S Improvement  Value Stream Map Define Measure Analyze Improve Control Charter  Spaghetti diagrams  Performance to TAKT  Time Value Chart  Standard Work Purpose  TAKT time / Cycle time© PPL Corporation 2011
    37. 37. Summary  Six Sigma is: – An initiative used to proliferate process improvement in any organization – A problem solving approach based on following the DMAIC roadmap that focuses on reducing variation – A measure of defects  Lean is: – A set of tools used to reduce waste in a process, thus increasing process velocity  Six Sigma focuses on variation, Lean on speed Lean and Sigma together, form LeanSigma and enable us to drive breakthrough improvements in our organizations.© PPL Corporation 2011
    38. 38. Revision History Rev Date Course Changes Name A 11/16/2011 Lean Technician First Draft TJ Barron B 1/26/2012 Lean Technician Review with TJ Barron Rachel H.© PPL Corporation 2011