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Riding Six Sigma to Implement

Lean

Riding Six Sigma to Implement

Lean

Juan AmadorLean Sigma MBB

Copyright Medtronic 2004

History and BackgroundMedtronic Mission

History and BackgroundMedtronic Mission


History and BackgroundThe need for Lean Sigma SolutionsTM

History and BackgroundThe need for Lean Sigma SolutionsTM

Corporate MissionCorporate Mission• To contribute to human welfare by

application of biomedical engineering in the research, design, manufacture, and sale of instruments or appliances that alleviate pain, restore health, and extend life.

• To direct our growth in the areas of biomedical engineering where we display maximum strength and ability; to gather people and facilities that tend to augment these areas; to continuously build on these areas through education and knowledge assimilation; to avoid participation in areas where we cannot make unique and worthy contributions.

• To strive without reserve for the greatest possible reliability and quality in our products; to be the unsurpassed standard of comparison and to be recognized as a company of dedication, honesty, integrity, and service.

• To make a fair profit on current operations to meet our obligations, sustain our growth, and reach our goals.

• To recognize the personal worth of employees by providing an employment framework that allows personal satisfaction in work accomplished, security, advancement opportunity, and means to share in the company's success.

• To maintain good citizenship as a company.

Speed and Quality, Design For Six Sigma

Learning culture

Process excellence

Internal cost, turns, etc.

Life tools and development

Process compliance excellence


History and BackgroundHistory


Founded in 1949 as a medical equipment

service company




• First external wearable pacemaker

• Expanded into implantable technology, other devices

• First external wearable pacemaker

• Expanded into implantable technology, other devices


Medtronic TodayBreadth of Our BusinessMedtronic TodayBreadth of Our Business


Medtronic TodaySteady Growth

Medtronic TodaySteady Growth


Medtronic TodayCommitted to Innovation - Research and Development

Medtronic TodayCommitted to Innovation - Research and Development

Two-thirds of our revenues are from products introduced in the last two years

Two-thirds of our revenues are from products introduced in the last two years


Medtronic TodayCommitted to InnovationMedtronic TodayCommitted to Innovation


Medtronic TodayLeveraging Technology

Medtronic TodayLeveraging Technology

Leveraging experience in electricalstimulation for …• Heart conditions

• Parkinson’s disease

• Pain

• Digestive disorders

• Bladder control problems

Leveraging experience in electricalstimulation for …• Heart conditions

• Parkinson’s disease

• Pain

• Digestive disorders

• Bladder control problems


• 30,000 Employees• 120 Countries• 30,000 Employees• 120 Countries

Medtronic TodayGlobal Reach

Medtronic TodayGlobal Reach


Medtronic TodayEvery 6 Seconds...

Medtronic TodayEvery 6 Seconds...

seconds


Process Science

Pursue variation and waste

Completes a Belt’s toolbox

Both implemented via DMAIC

Ride the culture change – examples


A 3σ process because 3 standard deviations fit

between target and spec

Target CustomerSpecification

1σ

2σ

3σ

Before

Target CustomerSpecification

After2σ

6σ

6σNo Defects!1σ

3σ4σ5σ

3σ

DMAICDMAICIs the Is the

methodologymethodology

Six SigmaSix Sigmamakes a science makes a science

of process of process capabilitycapability



DMAIC DMAIC is the is the

methodologymethodology

LeanLeanmakes a makes a

science of science of process flowprocess flow



Lean Thinking steps:SPECIFY VALUE – define process in terms of customer value

MAP THE VALUE STREAM – with customer focused measurements

MAKE THE VALUE FLOW – analyze for waste elimination

PULL – improve flow via customer pull

SEEK PERFECTION – continuous improvements and controls



Completes a Belt’s toolbox


MJ

MHL

W

Submission Question 1

Question 1 Answer 1

Answer 1 Question 2 Question 3

Answer 2Answer 3

Question 2 Question 3

Answer 2Answer 3

Question 4 Answer 4Answer 5

Question 4 Answer 4Answer 5

Question 6 Answer 6

Answer 6Question 6

Question 5

Question 7Question 8Question 9

Question 7Question 8Question 9

Answer 7Answer 8Answer 9

Answer 7Answer 8Answer 9

17 403 Cycle

Answer 11

Question 10

Question 11

Question 11

117 41 60 28 75

56

211

84 67 6 172 52 1Answer 12

68Answer 10

Answer 12

Question 12

26 84Approval

Answer 11

Question 12

Source DF Seq SS Adj SS Adj MS F P

SBU 3 9233.5 1861.5 620.5 2.37 0.131

Category 2 2402.4 2269.0 1134.5 4.34 0.044

Class 2 38.1 252.6 126.3 0.48 0.631

Type 5 5484.4 5484.4 1096.9 4.20 0.026

Error 10 2613.5 2613.5 261.4

Total 22 19771.8

S = 16 1664 R-Sq = 86 78% R-Sq(adj) = 70 92%

Source DF Seq SS Adj SS Adj MS F P

SBU 3 9233.5 1861.5 620.5 2.37 0.131

Category 2 2402.4 2269.0 1134.5 4.34 0.044

Class 2 38.1 252.6 126.3 0.48 0.631

Type 5 5484.4 5484.4 1096.9 4.20 0.026

Error 10 2613.5 2613.5 261.4

Total 22 19771.8

S = 16.1664 R-Sq = 86.78% R-Sq(adj) = 70.92%


Using statistics to find biggest source of time variation


Lean = Lean = Balanced Balanced

FlowsFlows

66σσ ==ReducedReducedVariationVariation

Process Process Step 1 Step 1




VariationVariationBeforeBefore

VariationVariationAfterAfter




Before

After

Printing, packing operation


Process Science


In Six Sigma:

Y = f(x1, x2…?)the challenge is to find the trivial many X’s, then identify the vital few X’s

Process Science

In Lean:

Y = f(x1, x2…x18)the challenge is to identify the vital few X’s


Analog adjustment, reprogram timer

Kanban, 5S, (Inbox signals, simplify/sort

the work station)

Methods to improve and control

Voltage, timeLabor time, move time (review the account,

walk to the mail drop)Xs

Weld StrengthLead Time (time to process expense

accounts)Y

Six SigmaLeanExamples of Ys, Xs

and Methods in both Lean and Six Sigma

Process Science


Lead Time

Environment Methods

Material

Machines

Personnel

NV A Inclusion

Labor/work Time

Mov e Time

Internal Setup Time

External Setup Time

Static/Dy namic machine

Machine/work Time

C apacity

% Downtime

Transfer Lot S ize

Process Lot S ize

Effectiv e hrs.

Boost %

Day s

Shifts

Demand/product mix

O ptions %

Rework/scrap %

The 18 Xs of Lean

Lead Time

Environment Methods

Material

Machines

Personnel

NV A Inclusion

Labor/work Time

Mov e Time

Internal Setup Time

External Setup Time

Static/Dy namic machine

Machine/work Time

C apacity

% Downtime

Transfer Lot S ize

Process Lot S ize

Effectiv e hrs.

Boost %

Day s

Shifts

Demand/product mix

O ptions %

Rework/scrap %

The 18 Xs of Lean

Process Science


TRANSFER LOT SIZEPROCESS LOT SIZE

OPTIONSREWORK

DOWNTIMEEXTERNAL SET UP

INTERNAL SET UPATTENDED MACHINE

UNATTENDED MACHINEMOVE

LABORTOTALS

Lead Time formulas are calculated with large

spreadsheets

Many Xs

Y

Process Science


Process Science


Crim

p

Dis

tal t

o

Bac

kfill

Inst

all

Inst

all & Fi

ll

Bac

kfill

Sta

ke IS

-1

Trifu

r.

Bac

kfill

Lase

r

Lase

r

Bac

kfill

Pre

p D

f-1

Crim

p D

f-1

Insi

tu D

f-1

Inst

all &

Fina

l

Fill

Ste

rile

Process Science

0%50%

100%

Op10

Op40

Op70

Op100

Op130

Op160

Op190

Op220

Op250

Op280

Op310

Op340

Op370

% used capacity % available capacity % of capacity

Before

After


Process ScienceDistribution center label print and ship


Ride the culture change – examples


InOut

Unpacking (Outer carton)

LibraryMJ

Storage Obsolete Demo. Hold

Domesticprocured

MJStorage

VJOperationStorage

NTStoragePacking material

ＭＪ Storage

ＭＪ StoragePacking

Packing material

ＶＪ

Hart Valve operationINC

Office

OfficeRepair

Experiment

CheckReceiving Material & labelstorage

Telemetry check

Hard product

Labeling Assembly Appearance checkQA check

Receiving registration

Decision for release

MJ NT・VJ

Shipping

Import product receiveReturn product receive

　　　　Return operationDecision for release Rework　

1F

2F

3F

4F

6F

MJStoragePacking material

ＭＪ Stock MJ Stock


ＶＪ


Customer Service

OfficeRepair

Experiment

Receiving Unpacking FG

MJ

Shipping



1F

2F

3F

4F

6F

Pick Label Pack and ShipStaging

MJStorage

Office Space for Kawasaki

MJStoragePacking material



ＶＪ


Customer Service

OfficeRepair

Experiment

Receiving Unpacking FG

MJ

Shipping



1F

2F

3F

4F

6F

Pick Label Pack and ShipStaging

MJStorage

Office Space for Kawasaki

Before After (4Q ‘ 04)

Cycle time and regulatory improvements

Inventory, 20 FTEs, 2 Floors, 11 days

Example: Japan distribution center


75% Inventory reduction

Example: Discrepancy report processing

Inve

ntor

y


Sample binning system – client FIFO drop off bins

Heijunka flow control

From 40% on time to 96%

Example: Chem. lab scheduling


From 1 hr 11 mins to < 5 mins

Before After

Example: Lot card issuance


Example: Auto Allowance

Process time cut in half


•• Lean and Six Sigma go together Lean and Six Sigma go together –– both make a both make a science out of the processscience out of the process

•• Ride the global Six Sigma passion, employees Ride the global Six Sigma passion, employees and infrastructure to implement Lean and infrastructure to implement Lean

•• Enhances belt career developmentEnhances belt career development

Ride the culture change – Summary

Medtronic does not do Medtronic does not do “lean or six sigma,” “lean or six sigma,”

we do Lean Sigma Solutionswe do Lean Sigma SolutionsTMTM everywhere.everywhere.


Cul

ture

Time

Ben

efits

Lean Sigma StrategyLean Sigma Strategy

Vision: Unlocking the potential in Medtronic’s people and processes

Curiosity

Project Wow

Leadership Standard

Next Level Enablers:Deploymeter ToolValues based awardAdd to champ guideTop belts into top jobs MDT Wide Value UsageValues in Belt trainingCustom Comp questions FY06Emerging Leaders Projects Big Y focus rolesOrg Plans/data mining/BU

Strategic effort to date

Lean Sigma and Leadership


Thank You

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