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Integrating Lean Six Sigma Projects to Your Strategy How to integrate LSS – People, Processes, Systems, Methods, Roadmaps, Tools & Techniques? Anand Subramaniam
2 “Good teaching is one-fourth preparation and three-fourths theater.”  - Gail Godwin
3 Highlights Vision – Centre of Excellence (CoE) ,[object Object]
Lean & Six Sigma
Lean & Six Sigma – From Project Selection to Benefit Realisation
Lean & Six Sigma – Roadmaps
DMAIC -  High Level Overview,[object Object]
Process Maturity -  where are you? 5 No process measurement or control Some breakthrough improvements Many incremental improvements Continuous Improvement Culture ,[object Object]
Drive and direct change
Kaizen Events, Lean Six Sigma Projects
Identify & remove waste within their own work
Culture focused on striving towards – perfection (continuous improvement)Lean & Six Sigma Projects ,[object Object]
Address root causes of process problems
Refine LSS metrics & support structures
Generate value!Pilot Program ,[object Object]
Select diverse portfolio of pilot projects
Launch LSS pilots
Measure & adapt LSS structure appropriately
Integrate LSS into organisational fabricMaturity Time
Customer Experience – do you measure it? 6 Enhance Customer Experience Innovation (Business Model,  Products / Services and Processes)  External Stakeholder  (Political, Society)  Improve-ments Employee  Engagement (Safety, Morale) Revenue & Growth Improve-ments Cost & Productivity Process Improve-ments Build cross functional teams - capabilities & competencies Lean Six Sigma Projects Business Process Standardisation (BPM)
Process Excellence  7 Process  Improvement  Improve existing processes to ever increasing values Process  Innovation Identify & create new products &  Processes CoE  (Centre of  Excellence) Process  Management Maintain standard  processes, metrics &  leverage of improvements
LSS & Process Maturity Level– where are you?  8 Lvl 5 - Optimised Low High Continuously Improve Process Lvl 4 – Quantitatively Managed Measured Predictable Process Lvl 3 - Defined Standard Productivity / Quality Risk Std Consistent Process Lvl 2 - Managed Planned & Tracked Maturity levels should not be skipped Disciplined Process Lvl 1 - Initial  Performed Lvl 0 - Not performed  High Low
Linking Your Strategy to Lean Six Sigma Projects Selection
Your Business Strategy & VOB / VOC 10 Voice of Business Voice of Customer Strategic Plan Plan CEO  scorecard Business Objectives ,[object Object]
Customer
Financial
Operation
Processes
EmployeeBusiness unit  scorecard Business Measures Project results ,[object Object]
Timeliness
Quality
Customer impactValue stream Value Leavers Project selection Execute Methods & Tools Process  Scorecard Strategic ,[object Object]
Business unit
Design (DFSS)
Infrastructure
Cross-functionalTactical ,[object Object]
Defect reduction
Yield improvement
Cycle time reduction
Rework / scrap reduction,[object Object]
Have you analysed your gaps? 12 Analyse Gaps ,[object Object]
Evaluate  market position
Estimate breakthrough potential
Evaluate NPM readiness
Establish benchmarks
Executive ownership of findings
Identify barriers to implementation
Identify risks / opportunities Business Strategy Key Performance  Indicators Market place Leadership Processes Core Business Processes Process Output Measures Critical To  Satisfaction Gap Analysis Support Processes
How have you closed the gaps? 13 Focus on closing gaps Business Strategy Key Performance  Indicators Market place Leadership Processes Core Business Processes Process  Output Measures Critical To  Satisfaction Deploy key improvement areas into potential projects Key Improvement Areas Gap Analysis Support Processes D B E C A Prioritise potential projects  Potential  Projects ________ ________ Potential  Projects ________ ________ Potential  Projects ________ ________ Potential  Projects ________ ________ Potential  Projects ________ ________ Select projects that will have the greatest impact on driving the businesses key performance indicators, strategy, & critical to customer (CTQ) requirements. Active Projects
Here is an example..showing linkage 14 Strategic Intent e.g.  10%  Return on Sales Financials STRATEGY Improve Revenue Improve EBIT TACTICS Reduce Operating  Expenses Reduce Costs of Poor Quality Get more  NEW customers Increase prices “share of wallet”  Existing / New  customers Processes EXECUTION Project C Project F Project B Project E Project A Project D
Lean Six Sigma (LSS)
Lean Six Sigma - Convergence 16 Commonality of both methodologies: ,[object Object]
Improve processes by eliminating waste & delivering value
Continuous effort to ensure improvements are sustained,[object Object]
What about your KPIs? 18 Minimum Cycle Time Right Delivery Robust Performance! Maximum  Flexibility Lean Transformation Minimum Waste Lean Tools Reduced Inventories Improved Capacity  Management Six Sigma Quality Six Sigma Tools Highest  Quality Right Quality Best Process  Reliability Predictable Results! Rapid  Response to Change
An example…to better your KPIs 19 Improvement Toolset  Lean Environment Benefits Quality   - Manufacture to target specifications   - Ensure process capability/reliability   - Standard operating procedures Minimum Cycle Time Six Sigma Maximum Flexibility Problems Identified and resolved   - Rapid response to problems   - Problems are solved immediately   - Methods to eliminate root cause Minimum  Waste Predictable Output   - Minimal variation in the process   - Predicable equipment/worker output   - Material and information is available Reduced Inventories Value Add Lean Skills & Sustaining  Improved Capacity Mgmt Elimination of Process Delay   - Minimal Material movement   - Small Lot production(EOQ =1)   - Takt Time controlled   - Continuous Flow Highest Quality Quality Management  Systems  Operational costs   - Multi-skilled employees   - Cellular manufacturing   - Repeatable process performance   - Optimised Facility Design Best  Process Reliability Rapid Response  to Change Sustaining Actions   - Training   - Leadership/Change Management   - 1% Revenue savings
Lean & Six Sigma - Comparison  20 Compliment each other Lean ,[object Object]

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Integrating LSS Projects to Improve Strategy