The document discusses implementing a Lean Six Sigma strategy using a process-focused approach. It recommends defining Lean criteria, developing a current state baseline, identifying gaps, and creating a 5-year business plan to drive continuous improvement. Key elements include using the DMAIC process, value stream mapping, eliminating waste, and establishing standard work through tools like 5S and visual controls. The goal is to reduce costs, lead times, and inventories while improving quality, productivity, and time to market.

1. Strategic Lean Six Sigma: Receiving Results That Are Most Important To Your Business

2. Agenda Process not a Program Lean Principles Implementation process

3. Why do Lean? Reduce manufacturing and overhead costs by 20% Deliver products/services in 50% to 80% less time Free up capital through a 75% to 90% reduction in inventories Reduce time to market by 50% Achieve 40% to 50% improvement in labor productivity

4. Don’t Forget Motorola lost the opportunity to reduce $5 billion in cost by forgetting non-manufacturing activities Bob Gavin Former CEO of Motorola

5. Process Not A Program

6. Basis of Understanding Toyota’s 12 rules D.I.K.A.R.(Data-Information-Knowledge-Action-Results) Model Lean Principles ISO-9004 Moving to Green

7. Toyota’s 12 Rules Start with action Learn by doing,training 2 nd Start with value stream projects Use value stream mapping to develop future state Kaizen Organize around value streams

8. Toyota’s 12 Rules 7. Make it mandatory Identify opportunities with big $ impact 9. Re-align metrics with value stream 10. Develop your own way 11. Hire or develop Lean leaders 12. Use experts for teaching

9. Continuity of Leadership Start from the top Involve from the bottom up Middle managers-”Change Agents” It takes time Extremely difficult

10. D.I.K.A.R DATA INFORMATION KNOWLEDGE ACTION RESULTS

11. Typical Process Companies do a great job of gathering data Make quick decisions with the data- thinking it will solve the problem-”instant gratification” Usually the decision ends up being a short term solution or incorrect

12. The Process- Current State Data Information Knowledge Action Results Instant Gratification

13. The Process- Desired State D.I.K.A.R. Data Information Knowledge Action Results

14. Data Linked to corporate objectives Valid and complete Significant Real time Organized and sorted Communicated

15. Information Easily accessible to all Organized for easy problem solving Actionable Organized and sorted Communicated to all

16. Knowledge Expanded through brainstorming Shared with all to identify improvement opportunities Documented,accessible and communicated to all

17. Action Planned and coordinated (Moving to Green) Performed in a timely manner Supported Communicated (Moving to Green)

18. Results Permanent Maintained (Moving to Green) Verified for effectiveness (ISO-9004) Documented (Moving to Green) Communicated

19. Lean Principles

20. What Lean Will Look Like Traditional Read reports Controller drives cost My view First answer Quantity of info 4 M’s(Material,Machinery Manpower,Methods) Future Walk floor Waste drives cost Common view Dig past first answer Quality of info Activities,connections and flows

21. What is Lean? “ A manufacturing philosophy that shortens the time line between the customer order and the shipment by eliminating waste” - John Shook It is a people centered system that focuses on continuously improving all aspects of the business. It strives to constantly expose and eliminate problems and sources of waste. It seeks to simultaneously improve quality, reduce lead-time and reduce cost. It is NOT a system to eliminate people!

22. Flip the Triangle Reactive Preventive Predictive Predictive Preventive Reactive

23. Shrink the Triangle Predictive Predictive Preventive Preventive Reactive Reactive $

24. Traditional-vs-Lean Waste Not needed at all in completing work- adds no value Examples -Looking for tools -Walking to get parts Necessary non-value added work No value added but must be completed under present work conditions Examples -Reach for part -Pre-assemble part -Q.C. check Value added work Changes the form,fit or function of a part or assembly Examples -Drilling hole -Installing part Waste Waste Necessary non Valued added work Value added work

25. If I Have Six Sigma-why Lean? Additional tools for Six Sigma experts Blending of Quality and Operations Quality becomes part of the process Kaizen projects linked to solving bottlenecks in Lean process

26. If I Have Lean-why Six Sigma? Additional problem solving techniques Focus of Kaizen teams on bottlenecks Black belts can be leaders of process Maintain/Sustain the gain

27. Data Information Knowledge Action Results Six-Sigma Define, Measure,Analyze,Improve and Control Great Analytical tools to support Lean Continuous Improvement to achieve high customer satisfaction Usually project specific-Kaizen events Supports Lean by identifying and minimizing bottlenecks Lean Continuous flow Collaboration of many Value stream maps- create continuous flow Customer requirements drive takt time

28. Principle #1 Structure every activity Can and are those doing the activity performing as indicated Sequence Following work instructions Following control plans SS Is the activity capable of producing the desired results SS

29. Principle #2 Clearly connect every customer/supplier Every relationship is a customer- supplier link Think of what can be done in a step to reduce errors or make it easier person downstream to complete the task without errors (Errorproofing SS )

30. Principle #3 Specify and simplify every flow path Make every flow path as simple as possible Should be easy to do the right thing and more difficult to do it the other way (Errorproofing SS )

31. Principle #4 Improve through experimentation Observe results as they match up against the ideal state Determine if changes made are sustainable- Effectiveness (ISO-9004) Benchmark process and create a future state map

32. 5 Building Blocks Directly observe work as activities, interactions and flows Systematic waste elimination Systematic problem solving Establish one common approach of what and how Create a learning organization

33. Directly observe work as activities, interactions and flow Definition: Deeply understand the current reality at the source of the process, not the results of the process. Observe how activities are performed, customers and suppliers are connected and the information, Material and people flow.

34. Directly observe work as activities, interactions and flow What it means to me: Where is waste Why is it what I’m doing/ What is being done that is not ideal Where are problems How will change improve things being done How does change compare to current state

35. Directly observe work as activities, interactions and flow Tools to observe: Value stream map Activity maps Product process flow Video tape process “ Go See” problem solving

36. Directly observe work as activities, interactions and flow Value stream map Current state Takt time Future state

37. Systematic waste elimination Definition: Waste is anything beyond the absolute minimum amount of materials, manpower and machinery needed to add value to a product or service

38. Systematic waste elimination Value added activities: Must be something the customer recognizes as being important and is willing to pay for Must alter the process output; the product must change Must be done right the first time All ‘3’ criteria must be met

39. Systematic waste elimination 7 Wastes: T Transportation I Inventory M Motion W Waiting O Over processing O Over production D Defects

40. Waste-Transportation Manufacturing/Operations - Double handling of parts between processes - Unnecessary long routes to deliver parts -Automated storage and retrieval systems Administrative - Double handling of data between processes -Moving 15 people to another bldg. To meet with 1 person -Sending mail via regular mail vs. e-mail

41. Waste- Inventory Manufacturing/Operations - Large quantities of parts/products to be shipped - Just-in case buffers -Excessively large stores/parts cribs Administrative - Storing office supplies both at desk and supply crib -Keeping excessive books/files for obsolete activities -Excessive amounts of office furniture in storage

42. Waste- Motion Manufacturing/Operations - Excessive walking from one material container to another - Excessive reaching for parts -Unnecessary movements of automated equipment Administrative -Hand delivery of hard copy reports -Office set-up requiring walking between phone,computer,etc -Walking to get high use files in a remote location

43. Waste- Waiting Manufacturing/Operations - Waiting for machine to cycle - Waiting for material to arrive -One assembly team waiting for another team to finish Administrative - Delays in data handoffs -Waiting for approvals -Waiting for meeting to start

44. Waste- Over processing Manufacturing/Operations - Making a part to excessively tight tolerances - Inspecting incoming material that was inspected at supplier -Extra welds, fasteners, adhesives, etc. Administrative - Re-keying data -Extra signatures for approval -Training for a skill set that won’t be used

45. Waste- Over production Manufacturing/Operations - Over-speed in a production line - Purchasing excess capacity on piece of equipment -Transporting a 50 lb. box on a cargo truck Administrative - Generating unused reports -Writing 15 page report when a verbal update would suffice -Installing a phone for all employees when average use is 15 minutes

46. Waste- Defects Manufacturing/Operations - Reworking/repairing parts - Scrapping parts -Shipping wrong parts Administrative - Rewriting a project presentation -Books/forms/brochures with typos -Billing errors

47. Systematic problem solving Contain Root Cause Countermeasure Verify Identify

48. Systematic problem solving D efine M easure A nalyze I mprove C ontrol D ata I nformation K nowledge A ction R esult

49. Systematic problem solving Problem Solving Tools: Value Steam Map Pareto Chart Fish bone diagram Statistical analysis Histograms Six Sigma tools

50. Establish one common approach of what and how Details of ‘What, How’ Where there is no standard….. There can be no corrective action Standardize Do Check Act

51. Establish one common approach of what and how High Agreement Tools: Standard Work Instructions 5S’s Error Proof Visual Control / Visual Display (Moving to Green) Control Point Audits (Moving to Green) Master Planning (Moving to Green)

52. 5S Sort Sustain Set in Order Standardize Shine

53. Sort Definition: Involves sorting through the contents of your area and removing unnecessary items Guiding principle: When in doubt, move it out

54. Set in Order Definition: Involves arranging necessary items for easy and efficient access and keeping them that way Guiding principle: A place for everything, and everything in its place

55. Shine Definition: Involves cleaning everything, keeping it clean and using cleaning as a way that your area is maintained Guiding principle: This area is your area, and you are responsible for it because you work there

56. Standardize Definition: Involves creating guidelines for keeping the area organized, orderly and clean, and making the standards visual and obvious Guiding principle: State when Sort, Set in Order and Shine are fully maintained

57. Sustain Definition: Involves education and communication to ensure that everyone follows the 5S standards Guiding principle: Everyone/ Every Day

58. Create a learning organization Organization Team P D C A Individual Individual Traditional Lean P D C A P D C A P D C A

59. Implementation Process

60. Moving to Green

61. PEP ISO9001 Compliance Audits CAR Management System IPPAP FMEA Control Plan Work Instructions QE Process Audit CSA Best Practices Benchmarking Other H-D Facilities KC PDC Tomahawk Etc. Upper Leadership SPC Effectiveness Audits CAR Quality Plan PAR MOVING 2 GREEN Concerns Tracking CI HD Corporate

62. Performance Criteria

63. Scorecard

64. Checklist-Focused Factory

65. Checklist- Prepare the Workforce

66. Checklist-5S

67. 5 Year Business Plan

68. Action Answer the question: Is Lean the thing to do? If Lean is right for you, “I recommend the following”: Define Lean criteria for your company (Future State) D Develop baseline (Current State) Identify gaps I Develop assessment worksheets (Moving to Green) Develop scorecard K Develop 5 year business plan, which will drive corrective action A Develop review process to measure results R

69. Action Everyone/ Every Day Engagement of all

70. Benefits of Lean Reduce manufacturing and overhead costs by 20% Deliver products/services in 50% to 80% less time Free up capital through a 75% to 90% reduction in inventories Reduce time to market by 50% Achieve 40% to 50% improvement in labor productivity

71. Benefits of Process Benefit #1 DIKAR model easy to understand and a tool to gain support. Answers the question why we want to do it. Benefit #2 Moving to Green allows: Setting baseline Identify Lean criteria and the gaps in the system. Setting corrective actions necessary to eliminate gaps. Scorecard to measure progress Actionable/measurable items for performance measurement. Assessment process Ability to create a real 5 year Business Plan. Benefit #3 Lean methodology that is part of the process not just a program

72. Close Brain-vs- Braun Collaboration-vs-Conflict Many-vs-Few Process-vs-Program Sustainability-vs-Temporary