Driving Operational Excellence 1

How to sell Kaizen to my colleagues?

Driving Operational Excellence 2

The indent starts with training each and another

„Teaching is the only major occupation of man for which we have not yet developed tools that make an average person capable of competence and performance. In teaching we rely on the 'naturals,' the ones who somehow know how to teach.“

- Peter Drucker -

Driving Operational Excellence 3

What is Six Sigma? Why use Six Sigma?

Driving Operational Excellence 4

Lean Six sigma info

• After the training session you will know:

• What is Lean Six Sigma

• What is the meaning of different ’Belts’

• What kind of improvement tasks are typical Lean Six sigma cases

Driving Operational Excellence 5

Lean Six Sigma

• Well-known, proven and systematic method used to improve

• Business processes and products

• Customer focused: where should we focus our quality improvements

• Focus on process variation, yield and cycle time

• Statistical measure of process capability, equivalent to defect rate of 3.4 ppm or 99.99966 % “good”

• Based on statistical tools and team work

• Pioneered in the 1980’s by Motorola• Engineer’s conclusion: “New products can be produced

error-free from the very beginning”• “Attack” towards the power of the Japanese companies in

the electronics industry

• Further developed by ABB in the early 1990’s

• Currently used by several large companies in the electronics industry

• Nokia, General Electric, ABB, Sony, Honeywell, Philips

• Utilisation of the method has made its way also to process industry

• Tetra Pak, Avery Dennison, Stora Enso, SCA, UPM, Dow Chemicals

Driving Operational Excellence 6

LEAN

Lets Eliminate All Non-value added activities

Non values in the process are:

Defects Moti on Processing Waiti ng Over Processing

Transportati on Inventory

Shifting Mean and/or Shrinking Variation

Variations are:

Producti vity Quality Forecasti ng Controls

Reduction / Elimination of process waste and deficiencies result higher process efficiency and customer satisfaction

OAE Takt Time VSM Push/Pull Demand Forecasting Time Study Variation

AnalysisCorrelation

Matrix

Six Sigma

Driving Operational Excellence 7

Lean Six Sigma could be used

• For any process in order to:

• Reduce variation

• Improve yields

• Eliminate defects

• Reduce the cost of poor quality

• Reduce cycle time

Six Sigma Methods

PURCHASING

PRODUCTION

R&D

SUPPLY CHAIN

HRMAINTENANCE

FINANCE

AS HELPDESK

QUALITY ASSURANCE

Driving Operational Excellence 8

How is it used? Implementation options

Business Transformation

StrategicImprovement

ProblemSolving

• Company wide• Culture change

- New way of doing business- Addresses all business

processes- Customer focused attitude

• Targets key strategic or operational weakness or opportunity

• Apply to products or business processes

- Product development process- Enhance operational efficiency- Order to Cash cycle

• Fix specific issues• Urgent needs

- Improve throughput- Reduce customer

complaints

GEAvery

DennisonDuPontDowBombadier

ShellSiemensBTCentricaNokia

PhilipsFord/JaguarPSADSMSun Chemicals

Ref. „The Sigma Way – Peter Pande..“

9

A Disciplined Roadmap

Phase I: Process Measurement

Phase II: Process Analysis

Phase III: Process Improvement

Phase IV: Process Control

What is important?

How are we doing?

What are the root causes?

What needs to be done?

How do we sustain the gains?

Phase 0: Project Definition

Driving Operational Excellence 10

Lean Six Sigma project phases

1. Project selection (Define)• What is the problem? What is the target?• What is the process?• What are the expected efforts and savings?

MeasurementNumber of Defects?

Analysis

Why, when and where defects appear

Control

Check long term improvement

Improvement

How to put undercontrol the process

2. Problem Solving with four steps M A I C

3. Results• Financial (quality-cost reduction, increased customer satisfaction)• Facts for investment decisions (clear evidence to show in investment proposals)• Training (new experts trained in connection with project)

11

Lean Six Sigma players

Champion

Black Belt

Selects the project

• Sets the problem & targets• Supervises the implementation• Breaks down barriers of project• Provides the resources needed

Leads the Six Sigma teams • Provide coaching and support to project team• Trains Black Belts & Green Belts• Full-time

Solves problems• Uses Six Sigma method & tools• Part-time (e.g. 25 % of working time)

Solves problems• Engine of the Six Sigma program• Build teams, attack problems by driving the teams for solutions that work• Full-time, trains Green Belt

Master Black Belt

Green Belt

Driving Operational Excellence 12

Typical time commitments during project phases

Review

Lead

Support

Month 0 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6

Recognize Define Measure Analyze Improve Control Realize

Process Owner

Green Belt or Black BeltChampions

Finance Rep

Driving Operational Excellence 13

Use Lean Six Sigma, because

• it‘s a proven, well known method used by many companies with great success

• it‘s a method that combines scientific tools with creative techniques

• it‘s a structured method with clear defined phases and roles

• it‘s time orientated to avoid never ending projects

• it‘s a standardized method to be used as a standard method in different units of the company

• it‘s a report and documentation orientated method that enables the transfer of solutions

• it‘s figures and fact orientated not telling stories only from the good

Driving Operational Excellence 14

Q & A Thank you!