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  1. 1. Lean Six Sigma: What Every Program Manager Should KnowDianna Hoyt Mark Adrian Used with Permission February 9, 2010
  2. 2. Executive Summary NASA Lean Six Sigma♦ NASA has a strategic imperative to realize better efficiencies within internal NASA processes ♦ Lean Six Sigma is becoming the method of choice♦ Lean Six Sigma is a defined approach to synthesize the use of established tools and methods ♦ Proven results in both commercial and government applications♦ Momentum is gaining for the implementation of this management tool across NASA because of demonstrated results ♦ Lean Six Sigma “NASA Style”
  3. 3. Lean Six Sigma is Customer Driven NASA Lean Six Sigma♦ Lean Six Sigma rests on “Value From the Customer’s Perspective”♦ Lean Six Sigma is all about meeting or exceeding customer needs and things that are critical to them ♦ Cost ♦ Quality ♦ Schedule♦ NASA Customers suffer when their “Voice” is not correctly considered, captured or confirmed♦ Confirming the “Voice of the Customer” is critical for successful Lean Six Sigma projects
  4. 4. Lean and Six Sigma Methodologies… NASA Lean Six SigmaThe two methods are complementary and, if performed properly, can produce unprecedented results.♦ Lean Principles: ♦ Six Sigma: ♦ Specify what creates value from the ♦ If you cannot express what you know in customers perspective numbers, you don’t know much about it; ♦ Identify all the steps along the value stream ♦ If you don’t know much about it, then ♦ Make those processes flow you can’t control it; ♦ Strive for perfection by continually removing ♦ If you can’t control it, you are at the wastes mercy of chance. Lean Methods Six Sigma Methods Product or Service Outputs Increase Consistency Increase Efficiency Reduce Variation Simplify Work Flows Eliminate Defects Focus On High-value Steps The Customer Is The Driving Eliminate Waste Force Behind Improvement The Customer Is The Driving Force Efforts Behind Improvement Efforts “As-Is Flow” “To-Be Flow”
  5. 5. Lean Principles… NASA Lean Six Sigma ♦ Lean is a methodology that evaluates processes with a focus on ♦ Speed ♦ Efficiency ♦ Lean aims to cut waste and remove non-value added activities ♦ Waste and value are measured with respect to the customer’s requirements Views of your processWhat you BELIEVE it is… What it ACTUALLY is… What you WANT IT TO BE…
  6. 6. Six Sigma… NASA Lean Six Sigma 3σ Process 6σ Process-6σ-5σ-4σ-3σ-2σ-1σ 1σ 2σ 3σ 4σ 5σ 6σ -6σ -4σ -2σ -5σ -3σ -1σ 1σ2σ 3σ4σ5σ6σ LSL Mean USL LSL Mean USL 3.8σ= 99% Good 6σ = 99.99966% GoodPractical Examples ♦ 20,000 lost articles of mail per hour ♦ 7 lost articles of mail per hour ♦ 5,000 incorrect surgical operations per week ♦ 1.7 incorrect surgical operations per week ♦ 200,000 wrong drug prescriptions each year ♦ 68 wrong drug prescriptions each year ♦ No electricity for almost 7 hours each month ♦ 1 hour without electricity every 34 yrs Variation has a major impact on the customer’s perception of quality If we assume standard government processes operate at 1σ these examples become: ♦ 636,000 lost articles of mail per hour ♦ 6.36M wrong drug prescriptions each year ♦ 159,000 incorrect surgical operations per week ♦ No electricity for approximately 2 days per week
  7. 7. Lean Six Sigma in Government and Private Sector NASA Lean Six Sigma ♦ Government and private sector organizations have much in common ♦ Pressure to improve service and products ♦ Expectations to control or cut costs ♦ On-time delivery is paramount ♦ Large organization behavior ♦ Lean Six Sigma has been successful in government ♦ Benchmarking has revealed many approaches ♦ Tailored Lean Six Sigma utilization better serves NASA’s mission, goals, objectives and culture Tailored Lean Six Sigma Approach Serves NASA
  8. 8. NASA’s Lean Six Sigma Journey NASA Lean Six Sigma♦ MSFC employee-driven grassroots effort has applied industry best practices ♦ Successful projects brought have visibility and demand has grown for more Lean Six Sigma capability ♦ Training program has been developed to create “in house” experts to meet demand♦ Lean Six Sigma project efforts have increased in scope and become cross cutting ♦ Ares Project Office has embraced Lean Six Sigma as a means for employees to improve the processes, products and services they are accountable for and use ♦ Engineering Directorate has embraced Lean Six Sigma as a means for employees to improve the processes, products and services to meet program and projects needs
  9. 9. The Journey Continues… NASA Lean Six Sigma♦ MSFC, LaRC, GRC, JPL and HQ are strategically applying Lean Six Sigma ♦ MSFC, LaRC, GRC, and JPL Center and Program focused ♦ HQ Center, Program, and Agency focused♦ SSC, GSFC, JSC, KSC, and Dryden employees have attended Lean Six Sigma training and are starting projects at their locations ♦ “First Step” employee grass-root efforts utilize Lean Six Sigma for cost, quality, and schedule improvements ♦ Successful projects are resulting in Lean Six Sigma expansion…
  10. 10. The Focus Is On What Matters Most… NASA Lean Six Sigma♦ Leaders are engaged in Lean Six Sigma ♦ NASA Leaders are highly visible in leading Lean Six Sigma training and projects ♦ Visibility is planned into key training and project activities♦ Lean Six Sigma goal setting ♦ Serious challenges or problems are identified for projects ♦ Lean Six Sigma project scope and goals are explicit ♦ Lean Six Sigma reporting is linked to existing reporting venues♦ Agency goals are major drivers ♦ Improvement / design efforts are aligned to meet or exceed customer requirements♦ Implementation accountability ♦ Successful project implementations are resulting in Lean Six Sigma expansion… Lean Six Sigma must be relevant to Agency Goals and Objectives
  11. 11. NASA’s Lean Six Sigma Evolution NASA Lean Six SigmaTransforming • Continuous improvement is everyones job • Improvement driven by strategy and measurements • Lean Six Sigma is "the way we work" • Result: Value delivered to taxpayers & customers • Management team leads process improvementOptimizing • Opportunity-focused clusters • Managers applying the Lean Six Sigma methodology • Result: larger benefits & better strategy execution • Black Belts and Lean Six Sigma team drive deploymentImproving • Ad hoc projects focused on tactical benefits • Learning the Lean Six Sigma tools • Result: cost-quality-schedule benefits Agency Leaders Encourage Lean Six Sigma Applications
  12. 12. Roles and Responsibilities NASA Lean Six Sigma ♦ Agency Leaders ♦ Master Black Belt ♦ Vision ♦ Trains and mentor’s belts ♦ Goals ♦ Technical resource ♦ Priorities ♦ Coaches deployment champions ♦ Strategy and managers ♦ Manages top projects ♦ Champions/Deployment Leaders ♦ Black Belts ♦ Center / Program / Project level ♦ Leads projects deployment ♦ Mentors Green Belts ♦ Barrier removal ♦ 1% Population ♦ Project identification and selection ♦ Green Belts ♦ Project Sponsor ♦ Lead smaller projects ♦ Resource allocation ♦ Key team member on larger projects ♦ Project focus ♦ 6% Population ♦ Ownership of the process ♦ Cross functional coordination ♦ Sustain the project gains
  13. 13. Types of Training Available NASA Lean Six Sigma ♦ Types of training ♦ Champions ♦ Executive Overview ♦ Master Black Belt ♦ Black Belt ♦ Green Belt ♦ General Awareness ♦ Delivery Methods (In House) ♦ On Site ♦ MSFC ♦ Open enrollment (Satern) ♦ Management Selects
  14. 14. NASA Lean Six Sigma Program Metrics NASA Lean Six Sigma Training Projects Total # of Projects Completed: 316 Total # of Ongoing Projects: 77Processes Impacted by LSS Projects Cumulative ROI
  15. 15. Lean Six Sigma and the Product Lifecycle NASA Lean Six Sigma Disposal/ Demil Concept & System Development Production & Operations & Up To Technology & Demonstration Deployment Support Development (1000+)X PRE - -SYSTEMS AQUISITION SYSTEMS AQUISITION SUSTAINMENT100% Robust Designs Costs are High Reduce Production to Repair Fleet & Sustainment Costs or Stockpile Life Cycle Cost Influence Cost of Corrective Action Greater ROI through Early DFLSS Detection & Preventive Action LSS Little Impact w/o Costs are Low Re -design to Redesign 0% X
  16. 16. Agency Level Projects NASA Lean Six Sigma ♦ Agency Desktop Software Delivery ♦ Reduced span time from 305 work days to 187 work days (39% improvement) Reduced approvals from 78 to 33 (58% improvement) ♦ Enhanced Use Lease (EUL) and Space Act Agreements (SAA) ♦ Cycle time reduced 47% (36 days to 17 days) ♦ Agency Records Management ♦ Reduced records retrieval time by 98.8% (456 hours to 5.25 hours) ♦ Disposition Process of Shuttle-Related Property and Assets ♦ Reduced Cycle time 56% (103 days to 45 days) ♦ Reduced process steps 66% (67 steps to 23 steps)
  17. 17. Center Level CMO Projects NASA Lean Six Sigma ♦ HSPD-12 Process ♦ Increased throughput from 4/day to 45/day ♦ Reduced cycle times for process from 52 minutes to 9 minutes ♦ New Procurements Requisition Process ♦ Reduced span time from 58 days/PR to 13 days/PR (78% improvement) ♦ OCFO Purchase Requisition Process ♦ Reduced labor from 42,309 hours/year to 6,428 hours/year (87% improvement) ♦ Process steps were reduced from 27 to 5 (81% improvement) ♦ Cycle Time was reduced from 20 days to 2.25 days (89% improvement) ♦ Foreign National Visitor Process ♦ Reduced labor from 31,410 hours per year 12,438 hours per year (60% improvement)
  18. 18. Engineering Projects (Design & Manufacture) NASA Lean Six Sigma ♦ Ares Interstage Production Flow between Ares 1 First Stage and Upper Stage ♦ Reduced Interstage Production Flow time by 32% (44.25 m-days to 35 m-days) ♦ J-2X Ancillary Rigid Lines Fabrication ♦ Lead Time Reduced 85% (245.5 to 36 days) ♦ Ares Common Bulkhead Bonding Development Process ♦ Reduced flow time 35% (100 days to 65 days) ♦ MAF Thrust Cone Assembly Flow Reduced flow time by 50%
  19. 19. Engineering Projects (Tactical Support) NASA Lean Six Sigma ♦ MAF Receiving ♦ Reduced motion (People) 92% - from 97.8 miles per month to 8 miles per month ♦ Reduced labor by 92% from 32.6 hours monthly to 2.67 hours monthly ♦ Reduced process steps by 45% from 20 to 11 steps ♦ Calibration Lab Facility Liquid & Gas Flow Lab ♦ Reduced labor in minutes from 12,653 min to 6040 min (52% reduction) ♦ Risk Management Process ♦ Cycle time has reduced from 95 days to 68.7 ♦ Contractor On-site Badge and Facility Access ♦ Reduced Cycle time 85% - from 15 days to 2.25 days
  20. 20. Ares I-X Lean Six Sigma Lessons Learned NASA Lean Six Sigma♦ LE’s are an excellent way to understand current development flows ♦ Disconnects become apparent.♦ LE’s are an excellent way to change processes to improve efficiency. ♦ Established tools & techniques are efficient means to identify and improve targeted processes.♦ Core (traveling) team is important.♦ Each LE team must have representatives with authority.♦ Shorter time for LE (but not too short) works better. ♦ Four to Seven working days is a good “rule of thumb.”♦ Out-briefs should be open to stakeholders.♦ Emphasize near term actions for implementation of future state.♦ Do events at the “production” sites. ♦ Having the personnel with the intimate knowledge and vested interest of the targeted process make the event more efficient and the results are more easily accepted.♦ Documenting assumptions is critical.
  21. 21. Additional Lean Six Sigma Lessons Learned NASA Lean Six Sigma♦ The ROI of Lean Six Sigma projects are directly proportional to the commitment of Senior Leadership to follow through on implementation♦ Projects must be endorsed and reviewed by senior management♦ Acceptance of Lean Six Sigma within an organization is accomplished through projects / events and not by training alone♦ Most effective results have been attained by Black Belts working Cradle To Grave on assigned events and projects Senior Leader Commitment is Essential to Lean Six Sigma Success
  22. 22. NASA Lean Six Sigma NASA Lean Six SigmaDiana Hoyt Mark AdrianManager, Strategic Planning and Policy CEO, Adrian Technologies IncorporatedDevelopment 203 East Side SquareInnovative Partnership Program, NASA HQs Suite C6Voice: 202-358-1893 - Fax: 202-358-3878 Huntsville, Alabama 35801E-mail: Voice: 256-508-1209