Innovation training

Innovation training

• 1.
  Julian Kalac, P.Eng LeanSix Sigma Master Black Belt June 2012
• 2.
   Focus andalign the flow of ideas, processes, performance and profitability within the business  Learn how to find new opportunities, organize the concepts learned and prioritize and/or defer others Objectives:  Enable more product launches with shorter lead times  Increase first-time quality and on-time deliveries  Enhance and sustain productivity improvements ◦ Output and “Value-add” per worker ◦ Output and “Value-add” per dollar invested
• 3.
  What: A process ofongoing, non-static, constantly renewed mindset of adding business value and increased productivity How: Trough demonstrated creativity and significant changes getting ideas & turning them into reality Where: in everything we do, enterprise-wide
• 4.
  Risk & Reward Continuous Improvement •Everyday cultureof change in how and what we do •Focus on maintaining & improving process precision, accuracy and discipline •Often savings are not strictly monitored but just put back into the business •Can support & narrow Breakthrough Innov. Amount of Resources and Activity Incremental Innovation •Relatively small improvements that are faster, better cheaper, •Savings show up in bottom & top line Distinctive Innovation •Significant advances and improvements by extending existing technologies/approaches •Adapting “other industry/sector technologies/approaches •Example: “Lean”/JIT/Single-piece- flow/Pull Systems in health care Breakthrough & Disruptive Innovation •Fundamentally new technologies/approaches •Implementing things previously thought to be not possible •Often a birthplace of Distinctive & Incremental Innovation •Can fuel and clash with Conti. Impr. and process discipline
• 5.
  Supplier “Push” “Customers gambling in Nevadahave figured out how to develop an application for counting cards beyond what Apple imagined” Customer “Pull” • New colours • Video features • More memory • Longer battery life • Predictive text
• 6.
  Ideas Inventions InnovationOperations Production Service The Ideas-Inventions-Innovation-Operations-Service (IIIOS) Roadmap: Sales & Marketing Research & Development Product Development Operations Production Customer Service The Hydrogenics Business Flow: Productive creativity and focused process discipline will lead to a successful sustainable harvest of results
• 7.
  •To help explainthe Toyota Production System to employees and suppliers, the “House of Toyota” graphic was created by Taiichi Ohno and Eiji Toyoda. •They chose the house shape because it was a familiar one – and also conveyed stability. •The roof contains the primary goals of TPS: superior quality, cost and delivery through waste elimination
• 8.
  Change Management Teams TPMJIT Point-of-Use Poka-yoke Pull System and KanbanCellular and Flow Autonomation Standard Work Self inspection Visual Workplace Quick Changeover Layout Batch Size Reduction 5S VSM Continuous Improvement Kaizen Blitz
• 9.
  “Future competition willnot be between products and services… … it will be between processes.” Dr. Robert Gee, National Graduate School “In order to develop a culture that consistently improves performance, you have to focus not just on the end result (solution focus) but also on how you get there (process focus).” Michael Kukhta, Master Black Belt
• 10.
  PDSA Cycle: Plan, Do,Study, Act  Plan a step  Take a step  Study the outcome  What worked?  What didn’t work?  What did we learn?  Act on the difference between what you expected & what you got  Keep learning This Way: Plan Do Act Check Plan Do Re-Act Check Not this Way: Dr Edwards Demming: Lack of knowledge… that is the problem There is no substitute for knowledge Study Analyze Study Analyze
• 11.
  From Dr. JosephJuran’s teaching:  Removal of Special Cause only brings to system back to where it should have been in the first place  The important problems of improvement commence once you achieve statistical control  “There is here, the same widespread unsupported assumption that the bulk of defects are operator controllable, and that if operators would only put their backs in to it, the plant’s quality problems would shrink materially” ◦ (J. Juran, Industrial Quality Control 1966) Juran’s Trilogy: 1) Quality Planning Develop Standards, Designs Processes & Systems that enable the possibility of compliance 2) Quality Compliance Use the Processes & Systems to measure performance to Standards 3) Quality Improvement Improve Performance to standards (compliance) Improve Standards, Designs, Processes & Systems
• 12.
  SCOR Model Customer’s Customer Supplier’s Supplier Supplier Internal or External Customer Internalor External Your Company Plan Make DeliverSource Make / Repair DeliverMakeSourceDeliver SourceDeliverSource Return Return Return Return Return Return Return Return Plan Plan Provides Framework for your Transformation / Improvement Projects. • Defining the boundaries / scope of the supply chain . • Evaluate the supply chain’s strengths and weaknesses. • Industry benchmarks, standardized terms, metrics, Enables a total enterprise view of a supply chain
• 13.
   The systematicelimination of waste and re-alignment of resources to deliver value to the customer faster, better, & more consistently  Lean also is: ◦ Pursuit of excellence ◦ Continuous Improvement of performance and quality ◦ . ◦ Increasing inventory “turns” and throughput ◦ Simplifying and redefining processes ◦ Measuring & monitoring processes ◦ Empowering the workforce Leading to Leading to Eliminate Waste Reduced Cycle Times Increased Capacity Focus: Eliminate waste, non-value add steps, process constraints and bottle necks that cause problems in work throughput Approach: Intuitive and broad - “inch-deep, mile wide”
• 14.
  The Five Principlesof “Lean Thinking” 1. Define value from the perspective of the Customer 2. Map the value stream 3. Get the stream to “flow” by eliminating waste 4. Allow the customer to “pull” value from the stream 5. Pursue perfection (continual improvement)
• 15.
  MEASURE •Map/measure the process •Collect lotsof data ANALYZE •Organize and analyze the data and information to Identify failure modes, problems, root causes CONTROL •Maintain, monitor and control variation •Preventively fix root causes IMPROVE •Plan, apply, deploy Improvement Tools •Correctively fix failure modes DEFINE •Identify standards, metrics, objectives, CUSTOMER PROBLEMS Define Measure AnalyzeImprove Control Results Define Measure AnalyzeImprove Control Results σ Use data-driven, measurement-based, statistical methods σ Think critically, deeply and analytically to improve performance σ Eliminate non critical business issues and concerns σ Focus: Surgical “inch-wide, mile-deep” investigation and resolution σ Approach: σ Solve problems at the system and root cause level σ Relentlessly pursue drastic reductions in variation then control and manage whatever variation is left over Applied projects following the DMAIC Model
• 16.
   In the1980’s, Engineers and Management at Intel and Motorola - realized that variance reduction and lower defect rates were one of the keys to the success of Japanese competitors  Is “Six Sigma Quality” – 3 DPM – good enough for your process? (e.g. producing semiconductors?)  Dr. Mikel Harry researched these successes in variance reduction and formed them with others into the “Six Sigma” programs that we are familiar with today “Sigma” Quality Level 1 2 3 4 5 6 7 Cost of Poor Quality (COPQ) $’s ? % First Pass Yield (FPY) 68 95 99 99.977 99.99966 99.379 Defects/million (DPM) 690K 308K 67K 6K 230 3.4 “Sigma” Quality Level 1 2 3 4 5 6 7 Cost of Poor Quality (COPQ) $’s ? % First Pass Yield (FPY) 68 95 99 99.977 99.99966 99.379 Defects/million (DPM) 690K 308K 67K 6K 230 3.4 Accurate Precise
• 17.
  Processes Processes Process Start Process Finish Process Steps ProcessesProcesses Organization Customers End-use Customers Suppliers Sub- Suppliers Process Steps Return Return Plan Make DeliverSource Make/Repai r DeliverMakeSourceDeliver SourceDeliverSource Return Return Return Return Return Return SCOR Supply Chain Model
• 18.
  Single Piece FlowJust-In-Time Eliminate Waste •Process parts one-at-a- time or in small lots instead of in large batches or economies of scale •Quick changeovers •Balanced and continuous flows instead of stop and start processing •Have just the right amount of inventory you need, when you need it, where you need it •Optimize the amount of inventory required •Ensure that your resources are ready to support the flow •Never knowingly pass on a defect •Improve the capability of your processes •Fix failure modes when they occur •Determine and resolve the deeper root causes = = The Toyota Production System Model by Michael Kukhta Reference: Senji Niwa, from the Shingijutsu Organization. Niwa-san also worked directly for Toyota’s Taiichi Ohno (TPS creator) for 18 years. “Classic Lean” Strength “Supply Chain Management” Strength “Classic Six Sigma” Strength
• 19.
  Numbers, words, quantities, valuesstored sitting in piles or queues waiting for future use Charts, summaries, spread sheets, etc. that organize the data Presentations, plans and tools that explain and communicate the information Processes, organizations and team using the information to improve, manage, build systems and develop cultures Push the data “up” to become Wise Always loop back to check the data Wisdom Knowledge Data Information Where are you looking from? The WISDOM TOWER: Changing Perspectives
• 20.
  2) Clearly Defineyour problem Example: Too many mistakes in purchase request specifications are causing rework rates of 34%, high costs and late deliveries (less than 50% on time) to our customers 1) Find: •Customer Issues •Performance Reviews •Meetings •New Projects •Failures, Re-work •Projects •Continuous improvement activities •Champions •Stakeholders •Employees •SCOR Maps •Research •Brainstorm •Wait until the crisis hits you •Value Stream Maps 3) Clearly State the Initial Charter for your project (Set targets and timelines!) Example: This first phase of this project – by 3Q 2004 - will identify problems and root causes in the purchase request process, target first pass yield rates of 95%, target a 50% reduction in the Cost Of Poor Quality and increase on-time deliveries to our customers to greater than 90% 4) Link improvement targets to customer needs and organizational objectives 5) Create a Project Charter - Resources, Milestones
• 21.
   What arewe Mapping? The flow or path of: ◦ People, Parts, Paper, Information, Electrons (IT, networks, computers)  What status is the Map we are making? ◦ “As Was” – a historical reference or how the process used to be ◦ “Should Be” – the way documentation says it is supposed to be or the way you think it is working ◦ “As Is” or “Current State” - an accurate reflection of how the process is actually working. You must “walk” the process on the ground at the working level to validate the “real” way ◦ “Future State” – a projection of how you would like the process to work ◦ “Utopian State” – the way the process could work if there were no restrictions or boundaries on time and resources
• 22.
  Represents... Some Examples are... This Symbol…. Start / Stop *Receive Trouble Report * System Operable Decision Point Approve / Disapprov e Accept / Reject Yes / No Activity Process Step or Activity Connecto r (to another page or part of the diagram) A A B Represents direction of flow
• 23.
  Enjoy! Fill kettle with water& plug in Get coffee from cupboard I’m going to have a coffee Instant or Brewed Put coffee into mug Get mug from cupboard Pour hot water into mug A Add cream & sugar Is it to taste ? Yes No InstantBrewed Process Flow Diagram: Morning Coffee Flow Chart
• 24.
  High-Level Process Map Can show the link from suppliers outside your organization to the customers you deliver your product or service to Mid-Level Process Map  Can show your organization within the larger organization you work in Detail-Level Process Map  Show s the process within your organization that you wish to investigate further Stop Start Stop Start Start Stop Stop
• 25.
  Product and Services Cash/Funding Information Customer’s Customer Supplier’s Supplier SupplierSupplierCustomerCustomerYour Company PlanPlan Make DeliverSourceSource Make / Repair DeliverMakeSourceDeliver SourceDeliverDeliverSource ReturnReturn ReturnReturn ReturnReturn ReturnReturn ReturnReturn ReturnReturn ReturnReturn ReturnReturn PlanPlan PlanPlan
• 26.
  VA/NVA Ratio= 46% DPU= ____ RTYield = _____ SCORE CARD: I’m going to have coffee Fill c. maker with water Scoop Coffee into c. maker Get & place Filter in c. maker Drink coffee Is taste OK Brew coffee Pour c. into cup Add cream & sugar Water Supply Process Shopping Process Electricity Supply Process Eating Equipment Supply Process Tasting Process Housekeeping Processes NVA = Non-value Added Time VA = Value Added Time VA Time NVA Time Temp of Water= ___ Quality of Water= ___ Pressure of Water= ___ Amount of Coffee= ___ Quality of Coffee= ___ Type of Coffee= ___ Defective Coffee= ___ 60 sec 30 sec 60 sec 360 sec 10 sec 60 sec 10 sec 10 sec 5 sec 600 sec 30 sec
• 27.
  Is your errorin the process or in the way you measure it? Could it be that you actually are “good” but the error in the measurement system shows that you are not “good”? Overall Variation Occurrence-to- Occurrence ( or Piece- to-Piece) Variation Measurement System Variation Repeatability: Variation due to gage or measurement tool Reproducibility: Variation due to people or operators who are measuring
• 28.
  3) Who? 4) When? 5)How Much? 6) How? 2) Where? 1) What? 6) How will you collect it? Sample Data Collection sheet Data Collection Sheet Process Name: _____________ Process Step: _____________ Location of Measurements: _____________ Measurement Tool Used: ______________ Measurement System Error: _____________ Measurement Number Value Units (e.g. inches) Time of Measurement Person who measured 1 2 3 4 5 Data Collection Sheet Create a Data Collection Plan:
• 29.
  The Seven “Muda”(the Japanese word for any activity that consumes resources but adds not value; also known as “waste”) ◦ According to Taiichi Ohno’s enumeration of the types of waste commonly found in physical production of tasks and conversion of activity into services 1. Overproducing ahead of demand 2. Waiting for the next process step 3. Unnecessary transport of materials [and information] 4. Over-processing of parts due to poor tool and product design [extra and over processing documents and approvals] 5. Inventories [of parts, data, information, people, electrons, cash] more than the absolute minimum 6. Unnecessary movement of people [parts, data, information, electrons, cash], during the course of work or processing (looking for things, drawings, technical help, etc.) 7. Production of defective parts [and services]
• 30.
  8. Not FullyUtilizing your People : (The Greatest Waste of All) ◦ Under-Utilizing:  Not applying and harvesting the full capabilities of your employees  Training but not using the capabilities learned  Expecting high-performance from untrained or inadequately trained people ◦ Over utilizing and over-relying on a few employees  Over relying on a select few  High overtimeIncessantly increasing time demands  Unsteady flow and non-level loaded work- hurry-up and wait  High variation in processes – pressure and stress for people ◦ Uncertainty and conflict versus confidence and trust in the workplace ◦ How are you managing changing business and economic climate? ◦ The organizational culture is different, even within the parts of an organization: Are you thriving, striving, dormant or dying?
• 31.
  Observation IndividualValue 464136312621161161 200 150 100 50 0 _ X=100.4 UCL=114.0 LCL=86.8 Observation IndividualValue 464136312621161161 200 150 100 50 0 _ X=98.7 UCL=187.5 LCL=9.8 1 Process A showscontrolled variation Process B shows uncontrolled variation A B Common Causes •Consistent •Often Special Causes •Sporadic •Sudden
• 32.
  Time Scale  Histogram Frequency LSLUSL 2 4 6 8 10 12 14 16 18 20 y Unit of time e.g. hours, months  a bar chart for numerical categories bars need not be in descending order shape provides a form of distribution of data central tendency and variability are easily estimated specification limits can be superimposed to estimate process capability •time •distance •dimension
• 33.
  A method todisplay the “vital few” from the “trivial many.” These charts are based on the Pareto Principle – 20% of the problems have 80% of the impact. The 20% represents the “vital few.” The Pareto chart helps you to arrange data in order of priority or importance. 90 30 20 10 5 Frequency Categories Percentage 75% 25% 50% 20 180 140 100 60 TITLE n = sample size (time period) LEGEND REFERENCE INFO date initials source 100 %
• 34.
  Types of Correlation StrongWeak None Positive Negative Y=f(x) Y=f(x)Y=f(x) x x x
• 35.
  Method Time Other Environment Criteria Card Face Down and On Target EFFECTCAUSES “CardDrop” Process where the desired output is to drop cards face down onto a target
• 36.
  WHY DOES IT TAKESO LONG TO MASK PART? TAPE DOES NOT STICK WHY DOES TAPE NOT STICK? PART HAS SOAP RESIDUE WHY IS THERE SOAP RESIDUE? RINSE CYCLE INADEQUATE POWER WASHER RINSE CYCLE BROKEN WHY IS POWER WASHER BROKEN? WHY IS RINSE CYCLE INADEQUATE? OLD MACHINE NOT REPLACED WHY IS OLD MACHINE NOT REPLACED CONGRESSIONAL BUDGET PROCESS IS FLAWED
• 37.
  Overview of HowFMEA Works Process Step or Input Potential Failure Mode Potential Failure Effects Potential Causes of Failures Current Process Controls Severity Rating (SEV) Occur- rence Rating (OCC) Indetect- ability Rating (DET) Risk Priority Number (RPN) What is the Input? What can go wrong with the Input? What is the Effec t on the Out- puts? How bad is it? What are the Causes? How often do they Occur? How can they be found or prevent- ed? How well can they be prevent -ed? Where is our greatest Risk?
• 38.
  Item No. Problem/Opportunity Benefit Person(s) Responsible Due Date % CompleteComments 1 2 3 4 5 6 7 8 Kaizen Event Newspaper Team: Kaizen Event: Team/Work Group Members Wwww, Xxxx, Yyyy, Zzzz Updated:___/___/___ Display Board for _____ Team Pareto DiagramFrequency Histogram Frequency LSL USL y Control Chart UCL CENTRELINE LCL
• 39.
  Seiri Seiton SeisonSeiketsu Shitsuke Sort Straighten Shine Standardize Sustain ( ) Separate the necessary from the unnecessary Organize in your layout in a logical sequence Clean, fix and change your workplace Build systems and processes to support 5S activities Ensure that the standardized methods, tasks and techniques are followed
• 40.
  Organize by frequency of use Set Baseline Contin- uously Improve Keep? Placein Local 5S Holding Area Place in “Last Chance” 5S Holding Area Record, Archive records Clean, Label, Tidy Fix, Map, Paint, File, Systematize, Standard Operating Procedures Audit, Monitor No Yes …improve our workplace organization and safety We want to: Allocate time & Resources Develop 5S Plans & Standards Separate /Sort Keep? Destroy, Scrap, Dispose No Yes
• 41.
   Level 1(Workstation Achievements) ◦ Data and reports (hard & soft) are sorted into piles, sections, drawers and multiple file locations: Cluttered  Level 2 (Workstation Achievements) ◦ Data & reports are sorted into files, binders and single locations ◦ Metrics, basic labelling, some visual controls ◦ Appearance is cleaner and more organized  Level 3 (Workstation Achievements) ◦ All files, data and reports are organize and labelled ◦ Metrics, information and 5S maps are available and posted ◦ Maintenance of 5S activities, audits of 5S performance  Level 4 (Work Group Achievements) ◦ Common standards for metrics, filing, labelling, file naming ◦ Simple, clear and effective Visual Controls & Driver Measure Boards ◦ Maintenance of Work Group 5S activities, audits of 5S performance  Level 5 (Site and Business Unit (BU) Achievements) ◦ Common standards for metrics, filing, labelling, file naming ◦ Simple, clear and effective Visual Controls ◦ Maintenance of 5S activities, 5S audits Can usually find things Can find things in a reasonable amount of time Can find any file or doc. In 30 seconds Close colleagues can find any file or doc. In 30 seconds Any colleague can find any file or doc. In 30 seconds
• 42.
  1. Specify valuefrom the standpoint of the end customer by product family. 2. Identify all the steps in the value stream for each product family, eliminating every step and every action and every practice that does not create value. 3. Make the remaining value-creating steps occur in a tight and integrated sequence so the product will flow smoothly toward the customer. 4. As flow is introduced, let customers pull value from the next upstream activity. 5. As these steps lead to greater transparency, enabling managers and teams to eliminate further waste, pursue perfection through continuous improvement.
• 43.
   Cycle Timeis the actual production rate – It is the time between two successive finished items coming out of your production cell.  Cycle Time is dictated by the slowest (longest) operation in the cell. 40 min 20 min 25 min 15 min 30 min 1 54 3 2 •What operation controls the cycle? •What is the Critical Path? •How can you relieve or shift the bottleneck?
• 44.
  Source: Improve Phase26jul07  Bottleneck ◦ The point which is currently reducing the flow or slowing the entire process ◦ A managed buffer before a bottleneck is necessary ◦ A bottleneck WILL exist in every process ◦ Bottlenecks move ! ◦ High WIP can mask the bottleneck ◦ Flex to the bottleneck ◦ The people working at the bottleneck take breaks, not the bottleneck
• 45.
  Pull Systems Production schedulingmethod used to link downstream activities to upstream activities Work begins based upon a demand signal (kanban) from a downstream customer, either internal or external Avoids overproduction, work backlog, and disconnects within a process Nothing is produced until the downstream customer signals a need
• 46.
   Takt Time ◦Drum beat of production ◦ Based on actual internal or external demand Available production time customer demand Takt Time =
• 47.
   Kanban ◦ Asignal to produce ◦ An empty square, bin, shelf, cart, or kanban card ◦ Response time should be worked out & agreed in advance ◦ Compensates for inability to pull ◦ Can extend through electronic notification to suppliers using automatic messaging and triggers
• 48.
   Setup Time ◦Tool changes & preparation to process first piece ◦ Starts when last piece of previous job is complete; ends when first good piece of next job is complete  Internal set-up: While machine is shut-down ◦ Strive to minimize this as process is not producing parts  External set-up: While machine is working ◦ Maximize through kitting, point-0f use tools/parts and preparation
• 49.
  Mistake proofing ◦ Eliminate/minimizechance for human error ◦ Poka yoke =  to avoid (yokeru) inadvertent errors (poka) ◦ Detection Poka yoke  Notifies of imminent process failure but requires operator interaction to avoid mistakes ◦ Prevention Poka Yoke  Stops the process before failures occur  Does not allow defects to pass through the process
• 50.
   Elements ofLead Time ◦ Lead Time = total process time from initiation to design to build to ship to payment ◦ Batch & Queue – Accumulate orders, then wait to be processed ◦ Setup time – prepare to process next job ◦ Run time – processing time per unit  Often less than 1% of cycle time  Only value added step of Lead time
• 51.
  ◦A cell organizes equipmentand operations in a process sequence for a specific output ◦This is opposite “Process centered Islands” where equipment / activities are grouped by functional operations Bottleneck Management: • Maintain buffer in front of bottleneck • (never starve the bottleneck !) • Improve bottleneck operation • Cross train on bottleneck • Creates a visual work place • Continuous Improvement • Cell technical & logistical support • Balance activities / operations • Focus on balanced, continuous pull through the cell
• 52.
  •Only after specifyingvalue and mapping the stream can lean thinkers implement the third principle of making the remaining, value-creating steps flow. •Such a shift often requires a fundamental shift in thinking for everyone involved, as functions and departments that once served as the categories for organizing work must give way to specific products; and a "batch and queue" production mentality must get used to small lots produced in continuous flow. •“Flow" production was an even more valuable innovation of Henry Ford¹s than his better- known "mass" production model.
• 53.
  Item No. Problem/Opportunity Benefit Person(s) Responsible Due Date % CompleteComments 1 2 3 4 5 6 7 8 Kaizen Event Newspaper Team: Kaizen Event: Kaizen Newspaper
• 54.
  “It isn’t thechanges that do you in, it’s the transitions.” (From: “Managing Transitions: Making the Most of Change” by William Bridges) Time What is your path? Who is with you? How many are with you? Ending, Losing, Letting Go The Neutral Zone The New Beginning • “Before you can begin something new, you have to end what used to be” • “Before you can learn a new way of doing things, you have to unlearn the old way isn’t the changes that do you in, it’s the transitions.” • “Change causes transition, and transition starts with an ending”