00 Vital Links Lean Six Sigma Change Acceleration 38 Pgs


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Explores the vital links of Lean, Six Sigma and Change Management.

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  • 00 Vital Links Lean Six Sigma Change Acceleration 38 Pgs

    1. 1. The Lean Enterprise Vital Links: Lean, Six Sigma and Change Management Lean Acceleration Continuous Improvement Training
    2. 2. Explore the component parts of a Continuous Improvement Process (CIP) and how Six Sigma, Change Management and Lean methodologies work together within the DMAIC problem-solving process. Examine the importance, benefits and integration of ‘ Lean Thinking ’ to help achieve Company objectives and operational strategies. Explain the need for providing more detailed Lean tools. Provide additional resources for self-study. Learning Objectives
    3. 3. N : (Need) <ul><li>Need for </li></ul><ul><li>Improvement </li></ul><ul><li>Achieve Process Excellence </li></ul><ul><li>Address Process Summary Analysis </li></ul><ul><li>( Most operations exhibit 15% - 30% waste ! ) </li></ul><ul><li>Differentiate brand/ market/ service/ value </li></ul><ul><li>(i.e. John Crane, Wal-Mart, Maytag, Costco …) </li></ul><ul><li>Economic Benefits ( reduce costs ) </li></ul><ul><li>Enhance Safety, Improve Quality </li></ul><ul><li>Speed to Market (Total Cycle Time reduction) </li></ul><ul><li>Employee Satisfaction </li></ul><ul><li>Customer Delight ! </li></ul> What is the Importance of doing better (CIP)?
    4. 4. <ul><li>  </li></ul><ul><li>- Ability to attain Better Caliber, High Profit Customers </li></ul><ul><li>- Identification of “Shining Stars” within the Organization </li></ul><ul><li>- Less Safety related Incidents, Accidents and Downtime </li></ul><ul><li>Through Safer Operations and incorporation of workplace </li></ul><ul><li>organization (6S) a Reduction of Liability Insurance </li></ul><ul><li>Premiums FY20xx (5% to 15%) </li></ul><ul><li>Reduction of COPQ - rework and scrap </li></ul><ul><li>(labor and material savings and associated benefits) </li></ul><ul><li>- Trained Team Leaders: 6S, Green/ Lean Belts, Black Belts </li></ul><ul><li>- Generation of ‘Mistake Proofing’ Ideas/ Processes </li></ul><ul><li>Realization of $15,000 to $150,000 (or more) cost </li></ul><ul><li>savings per Black Belt/ Green/ Lean Belt project </li></ul>What are some more benefits?
    5. 5. <ul><li>  </li></ul><ul><li>- Better response to ever increasing Customer Demands </li></ul><ul><li>- Shorter Lead times, Less Inventory </li></ul><ul><li>- Less Debt/ reduced carrying charges/ COGS </li></ul><ul><li>- Continually decreasing Set-up times (increased capacity) </li></ul><ul><li>- More floor space for production </li></ul><ul><li>Better reliability, maintainability and utilization </li></ul><ul><li>of equipment </li></ul><ul><li>- Longer equipment life </li></ul><ul><li>Reduction of Supply Partners and reduction in </li></ul><ul><li>associated SCM administrative costs </li></ul><ul><li>More satisfied employees </li></ul><ul><li>Less tardiness, absenteeism, turnover </li></ul><ul><li>  </li></ul>What are some more benefits?
    6. 6. $ Quality Lean Change Management Metrics focused on results important to the customer and with the highest potential for adding hard dollars to the bottom line Disciplined systematic approach designed to maximize results Safety and 5S together: Integrated and aligned people and processes    What are some developmental elements? Speed Project Reviews (DMAIC) 6S Project Leaders Executive Sponsorship “ Lean Belt’s” “ Green Belt’s” Prevention is the Key Safety First ! Proactive Workforce CAP Safety Trained “Champions”
    7. 7. Six Sigma Lean Quality Cost Delivery What are the 3 components comprising CIP? S y First Pass Yield Space Inventory Process Product Capacity Lead Time Setup Process Labor Throughput Travel (Material) Delay In-Process Storage PPM COPQ Setup Labor Kanban Voice of the Customer Policy Deployment/ SOX / ISO Visual Management Supplier Quality Process Capability SOPs/Standard Work Product Assurance (SPC, RCCA) Communication Team Dynamics Turnover Rate Cellularization One Piece Flow Manpower Setup SOPs/ SMED Maintenance SOPs (TPM) Cell Cleanliness (6S) Total Employee Involvement (TEI) Measurement Systems Change Management Process Excellence I P O
    8. 8. How do the 3 components come together? “ Six Sigma / Change Management/ Lean L-I-N-K” When done in concert - powerful combination Yield, Cycle Time, Re-Work “ Positively affecting the Continuous Improvement culture” WIP, Lead Time, Waste & Wasted Motions Six Sigma Methodology for reducing variation and driving solutions of any existing process (using data with graphical and statistical analysis) Change Management Methodology for assuring that change is sustained within organization The Lean Enterprise (including 6S) Methodology (philosophy and rich tool set) that is particularly focused on identifying and eliminating waste and improving workflows
    9. 9. What is the presentation ratio of Topics/ Subject Matter within typical CIP training? (% material content) Six Sigma (40%) Lean (40%) Change Management (20%) Project Management, Facilitation/ Communication/ Presentation Skills, Report Writing and use of statistical software packages: i.e. Excel, Mini-Tab Other subjects touched on: Green Belt, 2 weeks Black Belt, 4 weeks
    10. 10. What are some CIP training topics? (A sampling of techniques/ tools taught) Addressed in typical GB/ BB curriculum: Others addressed in ‘Lean Enterprise’ modules only: (single point lessons, more detailed) TPM Quick Change-over Kanban Value Stream Mapping Visual Management Standard Work 6S Kaizen Takt Time Mistake Proofing Process Mapping Project Charter Decision Making XY Matrix Process Capability SPC/ FMEA/ DoE etc Change Management Some topics are addressed in both:
    11. 11. What is Six Sigma about? <ul><li>Six Sigma … </li></ul><ul><li>Measure defects in a process and … </li></ul><ul><li>(with rigor and discipline) systematically figure out ways to reduce them to zero. </li></ul><ul><li>“ Puts practical tools to work to reduce variation at all levels </li></ul><ul><li>achieving tangible results of cost savings, employee, </li></ul><ul><li>customer and stakeholder satisfaction.” </li></ul>
    12. 12. What is the “DISCIPLINE” of Six Sigma? Quantify Define Measure Analyze Improve Control Project Selection Team Formation Identify CTXs Y Define Process Capability Validate Measurement System Define Defects Baseline Set Goals Identify x’s Find and Confirm vital few x’s Pilot Solution Y = f (x) Ensure Solution is Sustainable
    13. 13. What is the focus of Six Sigma? Variation reduction: <ul><li>Six Sigma attacks process variation </li></ul><ul><li>Six Sigma creates capable and predictable processes </li></ul><ul><li>Six Sigma is about measuring and improving how close we come to delivering on what we planned to do </li></ul>
    14. 14. <ul><li>Process Map </li></ul><ul><li>X - Y Matrix </li></ul><ul><li>Measurement System Analysis </li></ul><ul><li>Capability Analysis </li></ul><ul><li>Descriptive Statistics </li></ul><ul><li>Graphical Techniques </li></ul><ul><ul><li>Box Plots </li></ul></ul><ul><ul><li>Histograms </li></ul></ul><ul><ul><li>Scatter plots </li></ul></ul><ul><ul><li>Time Series Plots </li></ul></ul><ul><ul><li>Run Charts </li></ul></ul><ul><ul><li>Pareto Charts </li></ul></ul><ul><ul><li>Check Sheets </li></ul></ul><ul><li>Analysis of Variance </li></ul><ul><li>Correlation </li></ul><ul><li>Regression </li></ul><ul><li>Inferential Statistics </li></ul><ul><ul><li>Central Limit theorem </li></ul></ul><ul><ul><li>Confidence Intervals </li></ul></ul><ul><li>Failure Modes and Effects Analysis </li></ul><ul><li>Multi - vari Studies </li></ul><ul><li>Design of Experiments </li></ul><ul><li>Fractional Experiments </li></ul><ul><li>Full Experiments </li></ul><ul><li>Response Surface Methods </li></ul><ul><li>Analysis of Means </li></ul><ul><li>Transformations </li></ul><ul><li>Sample Size Selection </li></ul><ul><li>Fishbone Diagrams </li></ul><ul><li>Hypothesis Testing </li></ul><ul><li>F - test. T - test </li></ul><ul><li>Chi - square test </li></ul><ul><li>Tests for Normality </li></ul><ul><li>Tests for Equal Variances </li></ul><ul><li>SPC Charts </li></ul><ul><li>Control Plans </li></ul><ul><li>DFSS </li></ul><ul><li>Statistical Tolerancing </li></ul>What are some Six Sigma Tools?
    15. 15. What is Change Management about? <ul><li>Change Management … </li></ul><ul><li>- Change acceleration is a process to ease acceptance of new ideas. Effective Change Management assures that improvement initiatives remain in force and that organizations don’t revert back to the old ways (methods). </li></ul><ul><li>“ Ensures that process and system improvements are permanent, gains are realized, proven effective and continuously improved.” </li></ul>
    16. 16. What is the Change Acceleration Process? Leading Change Changing Systems & Structures Share Need Shape Vision Get Buy-in Make it last Monitor Progress Current State Transition State Improved State
    17. 17. What are the steps for Managing Change? <ul><li>Leading Change </li></ul><ul><ul><li>Give people someone to follow – by you and your Champions actions. </li></ul></ul><ul><li>Shared Need </li></ul><ul><ul><li>Create an imperative to act now. Pass this on to others. </li></ul></ul><ul><li>Shape Vision </li></ul><ul><ul><li>Be precise about what you want to achieve and and make sure it is widely understood and shared. </li></ul></ul><ul><li>Get Buy-in </li></ul><ul><ul><li>You must involve people and pass on your enthusiasm so that once you start another project the change is sustained. </li></ul></ul>
    18. 18. Steps for Change (Cont.) <ul><li>Make it Last </li></ul><ul><ul><li>Ensure that all influences to confound or support change are controlled. </li></ul></ul><ul><li>Monitor Progress </li></ul><ul><ul><li>Ensure that you are measuring effect not effort. Further publish progress </li></ul></ul><ul><ul><li>Finally: </li></ul></ul><ul><ul><li>Changing Systems and Structures </li></ul></ul><ul><ul><ul><li>Making sure that management practices (Staffing, development, rewards, measures, communication and organizational design) are used to compliment and reinforce change </li></ul></ul></ul><ul><ul><li>. </li></ul></ul>
    19. 19. What are the elements to making change last? Understanding Leading Change Changing systems & structures Clear path forward Clear Continuous Communication Motivation/ energy Ability to adjust Reflection/ integration Ongoing support/ commitment Making change last
    20. 20. What is Lean about ? <ul><li>The Lean Enterprise … </li></ul><ul><li>- Identify and eliminate Waste (Muda) </li></ul><ul><li>and </li></ul><ul><li>Wasteful Practices </li></ul><ul><li>Providing value in the eyes of the customer … </li></ul><ul><li>“ any part of the process for which the customer is willing </li></ul><ul><li>to pay. Value added activities would be those involved in </li></ul><ul><li>producing and delivering goods and services.” </li></ul>
    21. 21. What is the Alignment of Lean w/ DMAIC  Lean Approaches Align with D-M-A-I-C Define Measure Analyze Improve Control 6S activities Inventory Accuracy Takt Time Value Stream Analysis Line Balance Standardized Operations/ Standard Work Set-up Reduction Visual Management/ Control Kanban/ POU TPM Poka-Yoke
    22. 22. How does Lean fit under D/M A I(*m) C ? Particularly Applicable to “Agile” Manufacturing Pilot / Assess Impact (*measure) Institutionalize Define Measure I.D. Waste, CTXs, Cost Savings Define Business Case Lean Assessment Analyze Scope Relevant Improvement Opportunities I.D. Project Areas/Teams Improve Control Estimate New Capability Mistake Proof
    23. 23. What is the focus of Lean? Identification and elimination of waste <ul><li>Lean creates value by eliminating waste and aligning processes </li></ul><ul><li>Lean creates standardized processes </li></ul><ul><li>A means of revealing other projects which may require ‘DMAIC’ problem-solving methodologies </li></ul>
    24. 24. What are some Lean Tools? <ul><li>One piece flow </li></ul><ul><li>Pull production system </li></ul><ul><li>Level loading production </li></ul><ul><li>Cycle time reduction/ Set-up reduction </li></ul><ul><li>Aligning processes to customer demand (Takt-Time) </li></ul><ul><li>Mistake proofing </li></ul><ul><li>Elimination of the 7 elements of waste </li></ul><ul><li>Visual Management/ Visual Control </li></ul><ul><li>6S (5s + safety) </li></ul><ul><li>Value vs. Non-value added activities </li></ul><ul><li>Kaizen Activities </li></ul><ul><li>Best Practice Sharing </li></ul>
    25. 25. Measure Analyze Improve Control Define Do all methodologies incorporate DMAIC? Six Sigma (GB, BB, MBB project applications) Yes ! … time between phases may vary however . Lean 6S Workplace organization Rapid Implementation of Solution Problem Solving/ Root Cause and Corrective Action VARIATION WASTE
    26. 26. Why the Need for additional Lean material? <ul><li>Operate in a higher standard of HS&E requirements. </li></ul><ul><li>( Safety ) </li></ul><ul><li>Produce product and deliver services (processes) with Six Sigma capability. </li></ul><ul><li>( Quality ) </li></ul><ul><li>Produce in smaller quantities with faster delivery turnarounds. </li></ul><ul><li>( Speed of execution ) </li></ul>Changing business climate … Increased expectations of performance:
    27. 27. When would a team use The Lean Enterprise information (modules)? <ul><li>To strengthen already existing CIP vision, strategies, methodologies, projects … </li></ul><ul><li>__________________________________________________________________ </li></ul><ul><li>Lean Enterprise (LE) is an additional set of foundational tools and techniques that teams </li></ul><ul><li>utilize to identify and eliminate waste and wasteful practices. They were developed to be self-taught (facilitated) by a Black Belt. </li></ul><ul><li>Adapting LE creates standardized processes </li></ul><ul><li>A means of revealing other projects which may require ‘DMAIC’ problem-solving methodologies </li></ul>
    28. 28. How does adopting ‘Lean Thinking’ fit into our Business Strategy? <ul><li>Lean application opportunities are identified through baseline assessment efforts (e.g. – CIP assessments, Quality audits, Internal audits, SOX, ISO audits et al) </li></ul><ul><li>Lean enhances understanding of current operating conditions, and through Value Stream Analysis, helps determine the areas and sequencing of improvement initiatives </li></ul><ul><li>With its ‘Process Analysis’ mindset - The Lean Enterprise, as part of CIP - integrates the strategic Corporate strategies around Process Excellence, Organizational Capability and Organic Growth </li></ul>
    29. 29. How does adopting The Lean Enterprise principles help the Company? <ul><li>Lean Enterprise (LE) emphasizes prevention of waste: any extra time, labor or material spent producing a product or service that doesn’t add value to it. </li></ul><ul><li>LE can help reduce costs, achieve just-in-time delivery, and shorten lead times. </li></ul><ul><li>LE allows production of a wide variety of products and services, efficient and rapid changeover, efficient response to fluctuating demand, and increased quality. </li></ul>
    30. 30. How does The Lean Enterprise help our Customers? <ul><li>Lean Thinking facilitates streamlining the front end of the business with transactional Kaizen events and frictionless e-business </li></ul><ul><li>We add value to customer relationships through customer-focused process improvement and joining in our customer’s process improvement initiatives </li></ul>
    31. 31. How does The Lean Enterprise help our Customers? <ul><li>Through CIP (Lean, Six Sigma, Change Management), we strive to deliver the right product, at the right time, at the right price, with perfect quality every time. </li></ul><ul><li>We use on-time delivery, lead time and quality metrics to measure our performance </li></ul>
    32. 32. How does The Lean Enterprise help our Suppliers? <ul><li>Developed to transform key suppliers into our long-term partners and leverage their capability </li></ul><ul><li>___________________________ </li></ul><ul><li>Going Lean creates standardized processes. Many of our businesses represent a scorecard to supply partners – measuring their quality, on-time delivery, and other metrics </li></ul><ul><li>Increased supplier communication pays off in high efficiency </li></ul>
    33. 33. <ul><li>Other SCM elements of the overall approach include: </li></ul><ul><ul><li>Supplier Managed Inventory, Kanban and consignment, as well as long term agreements to realize efficiencies and reduce cost targeting point-of-use delivery – significantly improving working capital </li></ul></ul><ul><ul><li>‘ On-site Supplier Development’ (OSD) work with key suppliers - leading them to become self-directed learning organizations cognizant of incorporating available improvement technologies </li></ul></ul>How does The Lean Enterprise help our Suppliers?
    34. 34. PEOPLE Driving Growth Productivity Results Putting It All Together Continuous Improvement Process
    35. 35. What is the “ essence” of CIP? Applying appropriate problem-solving tools for maximum Results! <ul><li>There is no single approach that guarantees project success. However there are some basics: </li></ul><ul><ul><li>Developing Objectives using SMART criteria </li></ul></ul><ul><ul><li>Developing a good Plan </li></ul></ul><ul><ul><li>Applying tried & tested tools (Six Sigma and Lean) </li></ul></ul><ul><ul><li>Getting Employee Involvement (collaborating teams) </li></ul></ul><ul><ul><li>Trusting Empowered People - who ACT ON FACT </li></ul></ul><ul><ul><li>Utilizing Brainstorming techniques </li></ul></ul><ul><ul><li>Encouraging Process Mapping and Process Analysis </li></ul></ul><ul><ul><li>Assuring control and mistake proofing </li></ul></ul><ul><ul><li>Accomplishing more with less </li></ul></ul><ul><ul><li>Celebrating success ! </li></ul></ul>
    36. 36. How does Lean & Six Sigma drive results? By Pursuing Perfection! <ul><li>Product and Process Improvement </li></ul><ul><ul><li>Direct and indirect cost reductions: COGS </li></ul></ul><ul><ul><li>Process Analysis and Improvements: COPQ </li></ul></ul><ul><li>Efficient and effective utilization of Resources </li></ul><ul><ul><li>Labor contribution (Standard Hours) </li></ul></ul><ul><ul><li>Equipment Utilization (OEE) </li></ul></ul><ul><ul><li>Material Consumption (Spend) </li></ul></ul><ul><ul><li>G&A / Overhead Absorption </li></ul></ul><ul><li>Employee Satisfaction </li></ul><ul><ul><li>Retainment, Training, Development, Recognition </li></ul></ul><ul><li>Stakeholder Delight </li></ul><ul><ul><li>ROI, RONA </li></ul></ul>
    37. 37. Where can I learn more about Lean Six Sigma ? (Call Jay Watson 480 820 0877) These 2 books are quick reads… Leaning into Six Sigma (paperback) by Barbara Wheat , Chuck Mills , Mike Carnell <ul><li>The Gold Mine </li></ul><ul><li>by Freddy Ballé and Michael Ballé </li></ul><ul><li>The Gold Mine: a Novel of Lean Turnaround deftly weaves together the technical and human pieces of implementing lean manufacturing in an engaging story that readers will find both compelling and instructive. </li></ul>
    38. 38. The Lean Enterprise Vital Links: Lean, Six Sigma and Change Management Lean Acceleration Continuous Improvement Training