lean six sigma tools and techniques green belt certification session two (best practices improvement...
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Lean Six Sigma Tools and Techniques Green Belt Certification
Session Two(Best Practices Improvement Tools and Approaches)
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Session 2: Agenda Session 2: Agenda– Identify Teams Products and
Services
– Project Management Role
– SIPOC Diagramming
– Operational Definitions
– RUMBA & SIFOC
– Areas of Waste (Muda)
– Define and Map Processes
LEAN SIGMA Lifecycle TollgatesLEAN SIGMA Lifecycle TollgatesLEAN SIGMA Lifecycle TollgatesLEAN SIGMA Lifecycle TollgatesDEFINE MEASURE ANALYZE IMPROVE CONTROL
Develop Project
Team Charter,
& Project Plan
Develop the
SIPOC
Diagram
Develop the
CTQs &
SIFOC
Create
Measurement
Scorecards
Implement
Project Data
Collection Plans
Analyze
The
Data
Analyze
The
Process
Analyze
The Root
Causes
Generate
Solutions
Select/
Test
Solutions
Determine
Lean
Control Points
Implement
The Lean
Management
Response Plan
1
2
3
4 6 9 11
57
8
10 12
Project Management Essentials
There are four essentials to Effective Project Management:
• Common Vocabulary
• Teamwork
• The Project Cycle
• The Project Management Elements
Common Vocabulary• To succeed at Lean Six Sigma, you first have to
communicate clearly• The successful implementation of Lean Six Sigma
involves areas of conflict that can only be resolved with clearly defined terms
• Communication problems lead to conflict and destroy teamwork
• A common vocabulary is needed before you can develop teamwork
• To communicate clearly, you first have to think clearly• Acronyms can simplify communications if they are
clearly understood by the team.
Lean Six Sigma Common VocabularyLean Six Sigma Common VocabularyLean Six Sigma Common VocabularyLean Six Sigma Common Vocabulary
Lean Six Sigma is a quality program that: • Improves your customer’s experience• Lowers your costs • Builds better leaders• Reduces waste and inefficiency
LSS Streamlines core and support processes so that clients get what they want, when they want it, and when it was promised
Some Basic Definitions
“Lean Operations is a systematic approach to identifying and eliminating
waste (non-value-added activities) through continuous improvement by flowing the product at the pull of the
customer in pursuit of perfection”
Each LSS project needs its own Each LSS project needs its own terminology baseline. For example:terminology baseline. For example:
TeamworkEffective teams share several common characteristics:• They can articulate their common goal which they are committed
to achieve• They acknowledge their interdependency, coupled with mutual
respect• They have accepted a common set of boundaries on their
actions—a common code of conduct• They accept the fact that there is one reward they will all share• They follow the metaphor of an orchestra with a common score
and a conductor• Both need direction from a commonly defined script (Charter &
Project Plan) which serve as a single point of accountability for setting the tempo of the project
I – Forming II – Storming
III – Norming
IV - Performing
Stage Theme Task Outcome
Maintenance Outcome
Forming Awareness Commitment Acceptance
Storming Conflict Clarification Belonging
Norming Cooperation Involvement Support
Performing Productivity Achievement Satisfaction
Adjourning/ Reforming
Completion Results Recognition/Loss
Time (variable)
Gro
up
Eff
ectiv
en
ess
Teamwork Group DynamicsTeamwork Group Dynamics
V – Adjourning/
Reforming
Project Management SimulationProject Management Simulation
• The Lean Six Sigma Project Management simulation is intended to learn a project Vocabulary, build Teamwork, understand the Project Cycle, gain a deeper understanding of the activities and elements contained in a good project plan
•
•Confirm Customer Requirements
•Define The Measurement Scorecards
•Create Process Maps & Value Stream Maps
•Gather Initial Data and Determine Current
Performance
•Stratify Data
•Establish Cost Benefit
Measure Measure
•Define Problem Theme
•Create Charter
•Develop Change Management Roles
•Develop Masterplan
•Create SIPOC Map
•Define potential Waste
•Measure CTQs
DefineDefine
•Analyze the Measurement System
•Analyze the Process
•Develop Areas of Waste Hypotheses
•Gather Causal Data
•Determine & Validate Root Causes
•Analyze Areas of Waste
Analyze Analyze
•Identify Breakthroughs
•Identify / Select Practical Approaches
•Perform Cost/ Benefit Analysis
•Design Future State: FMEA
•Establish Performance Targets
•Poke-Yoke
•Quick-and-easy Kaizens
Improve/
Innovate
Improve/
Innovate
•Implement Solutions
•Measure Results
•P-D-C-A Process
•Lean Management Scorecards
Control Control
DMAIC Project Management ElementsDMAIC Project Management Elements
The above elements are the 30 common building blocks of a LSS
Project Plan
The above elements are the 30 common building blocks of a LSS
Project Plan
Key Questions for Each ProjectKey Questions for Each ProjectKey Questions for Each ProjectKey Questions for Each Project
LEAN SIGMA Tollgate #3LEAN SIGMA Tollgate #3LEAN SIGMA Tollgate #3LEAN SIGMA Tollgate #3DEFINE MEASURE ANALYZE IMPROVE CONTROL
Develop Project
Team Charter,
& Masterplan
Develop the
SIPOC
Diagram
Develop the
Customer CTQ
Requirements
Create
Measurement
Scorecards
Implement
Project Data
Collection Plans
Analyze
The
Data
Analyze
The
Process
Analyze
The Root
Causes
Generate
Solutions
Select/
Test
Solutions
Determine
Lean
Control Points
Implement
The Lean
Management
Response Plan
1
2
3
4 6 9 11
57
8
10 12
What is a SIPOC Map?What is a SIPOC Map?
A SIPOC is a high-level map illustrating in a series of steps or activities how one or more kinds of INPUTs are supplied and changed into an OUTPUT, that is of value to the CUSTOMER, as shown on the SIPOC Diagram below.
“The Business Process”Supplier(s) Customer(s)
Inputs Outputs
High Level SIPOC Process MapHigh Level SIPOC Process Map
Input Process OutputsSupplier Customer
The person, group, orsources providing key information, materials, or other resources to the process
The information or materials provided by suppliers that are transformed in the process
The series of steps that transforms – and ideally, adds value to the input
Limit to 5-7 Steps in a Block Diagram
The product or service used by the customer
Limit 1-3 key outputs
The person, group, or process that receives the output of the process
If we can understand and manage the inputs, we can make a difference in the
outputs.
If we can understand and manage the inputs, we can make a difference in the
outputs.
Process Outputs are a Function of InputsProcess Outputs are a Function of Inputs
Process
Inputs (X) Outputs (Y)
)(xfY Gas Mileage = f (speed;idle time;engine tune,…)
LEAN SIGMA Tollgate #2LEAN SIGMA Tollgate #2LEAN SIGMA Tollgate #2LEAN SIGMA Tollgate #2DEFINE MEASURE ANALYZE IMPROVE CONTROL
Develop Project
Team Charter,
& Project Plan
Develop the
SIPOC
Diagram
Develop the
CTQs &
SIFOC
Create
Measurement
Scorecards
Implement
Project Data
Collection Plans
Analyze
The
Data
Analyze
The
Process
Analyze
The Root
Causes
Generate
Solutions
Select/
Test
Solutions
Determine
Lean
Control Points
Implement
The Lean
Management
Response Plan
1
2
3
4 6 9 11
57
8
10 12
Voice of the Customer
1. Needs and reasonable expectations of the customer
2. Critical-to-Quality (CTQ) characteristics
3. Generic service characteristics
• Reliability
• Responsiveness
• Accessibility
• Timeliness
• Accuracy
• Care and Concern
Six Steps to Tollgate 3
For your service or program:
1. Identify your customers
2. What are their most important requirements (CTQ)
3. Operationally define requirements (CTQ)
4. Qualify requirements (RUMBA)
5. Identify Measurements for customer requirements (Customer Scorecard -Long term/short term measures)
6. Validate your customer requirements (SIFOC)
Step 2: Establish CTQs
CTQs are requirements set between you and your customer
How to identify and validate needs. Ask them:–What problems do you have with the present way things are done?
–What would you like that you are not getting?–How well do we serve you with what we presently provide?
Step 3: Operational Definitions
Operational Definition (OD) Elements
•Criteria – standard against which to evaluate results
•Test – procedure for measuring the requirement
•Decision – determination whether the test results show the requirements meets the outcome
Exercise: Count the Pages
• PURPOSE: This activity is intended to help people understand the need for operational definitions.
• MATERIALS NEEDED: A book, a set of instructions, two envelopes (one with slips of paper inside and labeled 'PAPER'; the other labeled 'ANSWERS'), a pencil/pen if participants would not already have them.
• TIME approximately 5 to l0 minutes to discuss. This is a background exercise going on behind the scenes and needs to be at least 15 minutes into a session.
• GROUP SIZE: at least l022
Count the Pages Debriefing
• Often responses will vary by more than l0!
• This brings us to the need for operational definitions.
• Sometimes people will ask, "What is the RIGHT answer?"
• An operational definition will take into account how the 'measurement' will be used (to order paper, to set margins, to obtain enough change to copy the material, etc.)
• Different parts of the organization may use the same word (page) to mean different things!
23
OD Example: Wanted!!! Wool Blanket
We want a wool blanket that is 50% wool
• Criteria – Wool fibers evenly distributed throughout the blanket and comprise half the blanket’s weight
• Test – Analysis of samples which effectively measures the distribution and proportion of fibers accurately
• Decision – Wool fibers are evenly distributed and comprise half the weight = blanket is 50% wool
24
Step 4: Using RUMBA to Qualify CTQs
• Relevant or Realistic? You or your organization can meet the requirement in a reasonable timeframe with a realistic amount of effort.
• Understandable? Customers verify that you understand what they require and that their needs can be translated into written instructions.
• Measurable? Requirements can be specifically measured and objectively determined as to the degree or frequency.
• Believable or Baselineable? Employees will agree to strive for that level of achievement from which baseline measures can be developed.
• Achievable or Actionable? We can meet the requirement with specific action items in the timeframes required.
Step 5: Use CTQ Tree to Build Customer Scorecard
CTQ Tree Diagram is used to decompose broad customer requirements into more easily quantified requirements
• Left side – more general hard to measure requirements
• Right Side – More specific, easier to measure
• Categories – Vision, Long-term, Short term, Measures, Targets
Step 5 – Build Customer Scorecard - CTQ Tree DiagramStep 5 – Build Customer Scorecard - CTQ Tree Diagram
VisionFaster Reduce
Cycle Time
Cycle TIme
50% Reduction
Reduce Repair Time
Repair Time
50% Reduction
Better Reduce Defects
% Defective
50% Reduction
Reduce Rework
% Rework 50% Reduction
Drivers CTQs Measures Targets
Cheaper Reduce Cost of Failure
% Waste 50% Reduction
Step 6: Use SIFOC to Validate Customer Requirements
1. Survey
2. Interviews
3. Focus Groups
4. Observations
5. Complaint Processing
House of Lean Six Sigma
Lean Scorecards
Facility Layout Visual 5S System
POUSPull/KanbanStandardized Work
TPM Lean Tools Data Analysis Tools
Lean Enterprise DMAIC
Continuous Improvement
ValueStreamMapping
Impact of Non Value-Added Activities
20%
15%30%
10%
25%
Rework
Idle Time
CustomerValue Added Work
Bureaucracy
OperationalValue-Added
Work
65% of the work in most processes is non-value added!
Customer Value-Added Work
• The customer recognizes the value.
• Some change is being made to the service or product.
• This is the first and only time we’re doing it.
Bureaucracy• Work no one uses• Reports not used• Non-productive meetings
Operational Value-Added Work
• Required to sustain the workplace ability to perform customer value-added activities.
• Required by contract, laws or regulations, or for health, safety, environmental or personnel development reasons.
• This is the first and only time we’re doing it.
Rework• Not done right first
time• Poor quality,
rejects, returns• Checking• Approvals• Redundancy
Idle Time• Waiting/ Delays• Backlog
Learning to See Waste in the Process
• Whenever there is a product or service for a customer, there is a value stream. The challenge lies in seeing it.
• The 8 areas of waste act as organizational ‘cataracts’ which blind our view
The 8 Waste Areas of Lean:Organizational Cataracts
1. Overproduction
2. Motion
3. Inventory
4. Transportation
5. Waiting
6. Underutilized People
7. Defects
8. Over-processing
OMIT What U DO
Control Point #1. Overproduction
Making more-earlier-faster than
the next process needs it
• Just in case logic
• Unbalanced workload
• Unleveled scheduling
• False sense of efficiency
• Printing 20 copies of a report that only 3 people look at
• “Reply-all” e-mails when it pertains to only a few
• Waiting to “batch” work
2. Motion
Any movement by/of people that does not add any value
to the product or service
• Poor layout
• Inefficient workplace organization
• Lack of Standardization, inconsistent work methods
• People, Material, and Machine Ineffectiveness
• Where are critical resources located?
• How far does the paperwork travel?
3. Inventory
Any supply in excess of one-piece flow
•Just-in-case logic
•Unbalanced workload
•Unleveled scheduling
•Unreliable suppliers
•Reward system
•“Pack rat” mentality
•Printed forms or tags that become obsolete
4. Transportation
Moving people, materials, and information
around the organization
• Extra distance due to Poor layout
• Inefficient “flow”
• Carrying large quantities
• Moving boxes, supplies, things to a storage area
• Equipment transport
• Mail distribution
• Messenger services
5. Waiting
Waiting for man, machine, materials, information etc.
• Just-in-case logic
• Unbalanced workload
• Unleveled scheduling
• Unplanned downtime
• Needs not understood
• 80% of the wait comes from 20% of the process
• Waiting for files or information
• Need a signature
• Customer reply to a voice-mail or e-mail
• Someone is printing 50 copies of a 70 page report
• Starting a meeting
W TTick
Tock
6. Underutilized People
Not utilizing people’s time, experience, skills, knowledge, creativity
• Not utilizing teams
• Organization structure
• Poor hiring practices
• Little investment in training
• Lack of suggestions
• “That’s not my job” attitude
• Waiting for lead from management
7. Defects
Information, products, and services are inaccurate and/or incomplete
• Lack of standardization, inconsistent work methods
• Ineffective communication
• Little investment in training
• Have to fix paperwork that is not completely filled in or track down the right person to get the information
• An entry error causes the wrong actions like ordering too many or too few, etc.Report
Error X
X Error
Error X
8. Over-processing
Effort that adds little to no value to the product or service from the customer’s
standpoint• Just-in-case logic
• Scope Creep
• Inconsistent work methods
• Ineffective communication
• Redundant approvals
• Excessive information, extra copies
• Multiple sign-offs or checks (7 signatures)
• New cover sheets on a report
Activity ≠ Results
Six Lean Tools
1. 5Ss
2. Visual Workplace and Visual Controls
3. Value Stream Mapping
4. Learning to See ‘Muda’ by Standardizing Operations
5. POUS and Quality at the Source
6. Quick-and-Easy Kaizens
A workplace that is clean, organized, orderly, safe, efficient, and pleasant results in:
Fewer accidents
Improved efficiency
Reduced searching time
Reduced contamination
Visual workplace control
Improved morale
A foundation for all other improvementactivities
Why Start Lean With 5S?Why Start Lean With 5S?
Elements of 5S
Sort – Eliminate the clutter
“When in Doubt, Throw It Out!”
Set in Order – Organize and label, set boundaries and limits
“A Place for Everything and Everything in Its Place”
Shine – Clean everything, inside and out
“Inspection Through Cleaning”
Standardize – Keep maintenance checklists; make them visual
“Everything in a State of Readiness”
Sustain – Maintain discipline through systems and a supportive culture
What is a Value Stream?
•Definition: A sequence of processes that are connected by a common customer, product, or service request.
What is Value Stream Mapping?
• Definition #1: The visual representation of processes to meet customer demand.
• Definition #2: The process of identifying and charting the flows of information, processes, and physical goods across the entire supply chain, from raw material supplier to the possession of the customer.
• Definition #3: A basic planning tool for identifying wastes, designing
solutions, and communicating lean concepts.
Components of Standardized Operation
Consistency + Predictability = Less ConfusionConsistency + Predictability = Less Confusion
StandardStandard
Work Work
In-ProcessIn-Process
StandardStandard
Work Work
In-ProcessIn-Process
Take TimeTake Time
Work Work
SequenceSequence
Work Work
SequenceSequence
Point of Use Storage (POUS)
Materials, tools, parts, and supplies are all stored in the area in which they are used
Utilize a visual, minimum signal replenishment systems
Most efficient if vendor or material handling relationship allows for frequent, on-time, small replenishment deliveries
Quality at the Source
Minimize or eliminate rework at final inspectionMinimize passed-on defectsEliminate non–value-added processingImprove throughputMaximize employee satisfaction
How Many Measures to Collect?
•Two to Three Output measures
•One to Two Input Measures
•Six or Seven Process Measure
Business Process Overview – Types of Processes
•Core–The 5-7 high level Processes in an Organization
that can have a profound impact on a Strategic Business Objective.
•Key Sub–The Multiple Lower Level Processes that
Constitute a Core Process.•Enabling–Processes that may not have an Impact on
Customer Satisfaction but are Vital for the Performance of the Organization.
Lean Turnaround SimulationLean Turnaround Simulation
• The original events, problems and alternatives described in Turnaround are based upon actual case studies and reports in business publications
• The current version has been updated to reflect the kinds of situations faced by today’s organizations in attempting to become Lean
• Recommendations reflect our current understanding of effective Lean Management and Continuous Improvement approaches.
Lean Turnaround SimulationLean Turnaround Simulation
• The original events, problems and alternatives described in Turnaround are based upon actual case studies and reports in business publications
• The current version has been updated to reflect the kinds of situations faced by today’s organizations
• Recommendations reflect our current understanding of effective Lean Management and Continuous Improvement approaches.