Lean Six Sigma – Expose and Eliminate Waste

Objectives

There are two main goals of the presentation: 1. Demonstrate the flexibility of the Lean Six Sigma Methodology to improve ANY process 2. Provide an overview of tactical Lean Six Sigma tools and their application DO WE HAVE YOUR BUSINESS CARD / NAME FOR OUR DRAW?

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CI CULTURAL CHANGE

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PURPOSE:

•To be a high quality, low cost service/product provider …

PEOPLE: •Must understand and accept their roles to achieve the goals and ultimately accomplish the Purpose

PROCESSES:

•Must be known and executed as established. They must be measured for results; Processes connect People to Purpose

4 P’s of a strong Management System (OMS)

PROBLEM SOLVING (Identification and solving):

•Adherence to a structured problem solving approach will drive faster cycles of gap closure and successful continuous improvement projects.

Cultural change

Management System

Purpose Processes

People Problem solving

For a company to drive successfully forward it needs to foster a culture of problem solving and identification AND continuous improvement

Integrating 4’s of a Management System

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Management System

Purpose Processes

People Problem solving

Organizational Thinking

Identify and solve gaps and drive increased

capability

Balanced Scorecards & Performance Management

Communicated Vision and strategy

Process mapped and performance monitored

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Retu

rn o

n in

vest

men

t

High

My Work

• 5S/Lean office • Intro to Lean • Time

Management* • Outlook

Training*

• Increased Productivity

• Increased Engagement

Trai

ning

O

utco

me

My Team

• Waste walks • Rapid

Improvement • Yellow Belt

• > CI Culture more efficient Team

• Lean Improvements • Huddle Boards • CI opportunities

identified (Project Hopper)

My Div / Branch

• Process Management

• Green Belts • Sponsor Training

• Data-driven decisions

• GB Projects with Client-Centric design

• Process Management Boards

• CI opportunities Div/Branch Project Hopper

• Service Improvements

• Cost improvements • Talent development

My Department

• BB Projects (complex problems addressed)

• CI opportunities Dept. Project Hopper

• SLA’s • Responsiveness to

customer needs • Accountability

platform for measurable results

• Integrated process improvements

• Skilled workforce

• Process Ownership • Black Belts

Maturity in deploying a Lean Culture

LEAN SIX SIGMA

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LSS; The best of both methodologies

○ Lean focuses on removing waste and non-value added activities, speeding up the process and reducing the costs

○ Lean also looks at the whole process, called a Value Stream, from the start the finish

○ Six Sigma focuses on quality of output of the process, ensuring that customer needs are met

○ Six Sigma reduces variation for a predictable output of a process and supports sustainable improvement.

http://www.lean.org/

http://isixsigma.com

UNDERSTANDING THE VERY BASICS~

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House Of Quality

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OPERATIONAL EXCELLENCE Cost, Revenue, Quality, Delivery,

Empowered Employees, Customer Focused,

Just in Time (JIT)

o Takt Time o One-Piece-Flow o Pull o Inventory Mgmt. o Cell Design o Load Leveling

Jidoka

o Built in quality o Problem ID &

addressing o 5-Why / C&E o Control Charts o Dashboards o PMB’s

Standard Work Work Standards

Continuous Improvement Stable and Capable Processes

Accountability Visual Management

Urgency Response

Leadership Coaching

5 S SOP’s

Work Stds

Data driven decisions

Metrics

Improvement Methodology

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We navigate through a

projects using the BC LSS Road Map.

DMAIC

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Define, Measure, Analyze, Improve, Control

5 P’s of getting started: 1. Problem Identified 2. Prioritized to Scorecard 3. Project Selected 4. Picked your metrics 5. Project Charter created

Measure

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Analyze

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Getting to Root Cause(s)

Some more statistical tests may be needed

Graphs and charts help

Work analysis too

Improve

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Solutions!! New Future State VSM

Stakeholder Management

Implementation Plan

Control

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5S (Also a quick hit in

Workouts and Waste Walks)

Visual Workplace

and Standard Work

Dashboards to keep real-time performance

in view

Management Board to keep track of ongoing performance and for

problem identification

REAL-LIFE APPLICATION Andrew Aikens

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DEFINE

• Problem • Process • Defects • Drivers

The problem Delayed releases

Fewer per year

Fewer services online

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The process

Gather requirements Design Develop

Test Deploy staging

Deploy production

The defects

Late releases

Production bugs

The drivers

Developers

Requirements Software

Architecture

Servers Versioning

Build / Deployment

Testing

MEASURE

• Causes • Metrics • Value stream

Causes by component

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51

42

3 2

52%

95% 98% 100%

Portal Code Adobe Forms

Database Other

Metrics

71 Production

bugs

9 Releases

In 2014:

Value stream

ANALYZE

• Causes • Delays

Causes of delay

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Maintenance Materials Method Server configuration

Requirements

Change control / "the merge"

Automated testing User stories Collaboration

Server restarts Paper forms Late changes

Late user engagement

Late forms

releases with

defects

Release scheduling

All-or-nothing releases

Manual testing

Political pressures Availability of Adobe

experts

Failed Adobe deployments

Differences between environments

Availability of Adobe training

Developer tools

Servers down Capacity of the team Long time to create Adobe version

Stuck threads

Mother Nature

Manpower

Machine

Two main delays

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41 Days

33 Days

Deploy Failed:

Inconsistent Environments:

IMPROVE

• Gather ideas • Prioritize

Prioritize Idea Readiness Impact Smaller releases 5th 1st Handoff agreements 6th 4th Automated testing 1st 2nd Standard environments 6th 5th Earlier user engagement 3rd 3rd Weekly staging releases 2nd 6th One deliverable at a time 4th 7th

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CONTROL

• Increase feedback • Shorten the feedback loop

Increase feedback

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Shorten the feedback loop

Increase feedback ̶ Which errors are users seeing? ̶ Which pages make people leave? ̶ Which devices?

Read these books

LSS TOOLS YOU CAN APPLY

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Business Case

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Voice of the Business

Voice of the Customer Voice of the Process

Potential Project

How does your company / department measure success?

How does your company / department know how each process is performing?

How does your company / department knows how the customer feels?

Process Mapping

The Cox-Box © 2013 and GaryP. Cox Send comments and stories to Gary Cox coxemail@eastli

Process Maps can take on different forms The true value of a Process Map is realized when you compare what is supposed to happen to what actually happens!

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Types of Process Maps

Source: Google images 40

What isn’t captured on a Process Map that might be

useful in assessing the performance and where to

focus improvements efforts?

Swim Lane Process Map

Process Flow Map

Process Flow Map

Process Map Symbols

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Action / Process Decision Predefined sub-process

Data

Document Mulit-Documents

Start / Stop

System Storage

Flow

Electronic info flow

P / Q

In-Process Performance or Quality indicator

Universal Process Map Symbols

P’s & Q’s ○ Performance Indicators should be applied to a

Process Map – P1, P2 etc. o The Performance Indicators are checkpoints that indicate how

the process is preforming. o Specifications or Targets are identified, what they measure, who

measures, how often, and corrective actions o How will the performance be made visual to those doing the

work?

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Specs/ Checki ng Frequency Responsibility Contingency IncludeTargets Item Plan Abbreviations

Control What to When to Who Action Req'd Procedures

Limits Check Check Checks for Exception Remarks, etc.P1 C Chart CRM Cases Weekly Supervisor DNC = Delivery Notice CardOut of Control situation

requires investigation of P1.1, P1.2, and P 1.3 indicators

No Delivery Attempt / No First Notice Complaints

Outcome/ProcessIndicator Charts

Control Charts

Process and/or Outcome Indicators

Process

CHECKING Misc. Information

AND/OR

P’s & Q’s

○ Quality Indicators should be applied to a Process Map – Q1, Q2 etc. o The Quality Indicators are checkpoints that indicate the quality

of the product or service. o Specifications or Targets are identified, what to check for (define

a defect), who checks it, how often, and corrective actions o How will the quality of the work/service or product be made

visual to those doing the work?

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What has been your experience with In-Process and Quality indicators on process maps? Why would it be important to capture them on a process map?

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LSS: 8 Wastes = TIMWOODS

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Inventory Motion Waiting

Defects Overprocessing Skills

Transportation

Overproduction

ID Waste ○ Inventory accumulation ○ Information handoffs ○ Defects & associated rework ○ Inspections, checks and sign-offs ○ Meetings and reports ○ Problems not solved promptly or permanently ○ Revisiting problems that were once solved ○ Processing in batches ○ Employees work at only one task because they are not cross-

trained ○ Physical Layout ○ Staff struggling with processes ○ Staff wait while others are too busy >unbalanced or inconsistent

workloads 46

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VOC /CTQ

Proactive & Reactive methods to obtain VOC

Discuss and list how Building up Inc. could effectively gather VOC – identify proactive and reactive methods

o Decide what you want to know and who’ll you’ll ask

o Determine how you will gather representative data

o Obtain reactive data where possible o Using the responses stratify them by

themes and similarities. (Affinity Diagram) o Turn these responses into factors that are

Critical To Quality (CTQs) with a CTQ Tree o Create the specifications from what they

are telling you

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Affinity Diagram - e-Signature

Customer Driver X'sNeed

Inaccurate address on item

RR Drivers not returning to office of origin

Delivery Process for Man. IDB Dock Process

Non validation of IDB quality by EE's and Supervisors

ROSS office also using Manaual IDB's

HWY Svs Schedules

Parcel Conveyer staff covering PIN's with route lables

lLack of knowledge of impact of wet IDB's

Red Pouches not being used

Duplicate PIN nubmer on IDB's (Carded and Delivered)

COD / Remittance process

IDB Quality Customer uses own blue pen

On Time Posting Electronic Shipping Tools

Oo Signatures Lack of ink in the printer

Non-Black pens used

Peel and Stick PIN numbers poor / PIN cut 1/2

Missing details on IDB

DPU Capability COD/ Remittance process adds processing time

Finance data adds processing time

Operating belwo RTO (A/L etc)

Contractors send IDB's to revision unnecessarily

‘X’s become the factors we need to look at closer. Why?

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CTQ’s Example

Y = f(x)

CTQ – Critical To Quality

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Create a CTQ tree from Building Up Inc Building Permit Application

Handout

Page 67

Using a CTQ tree we turn the VOC into Critical To Quality criteria or “X’s”

Customer Need from

VOC

Drivers CTQ’s “X’s”

WRAPPING IT UP

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Closing

○ Lean Six Sigma is not just for manufacturing processing of products

○ Lean Six Sigma is one cornerstone in developing a Continuous Improvement culture

○Green Belts / Black Belts are more than ‘Technical’ in nature

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Thank you & Question oWinners of the comic are… oPick up your DMAIC Roadmap ○ Please remember to fill out the presentation

survey either online or the paper form provided

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