microsoft powerpoint - copy aoq lean

Productive Learning Lean and Six Sigma™– the End, Ways and Means

Monash University Street Melbourne

AOQ Presentation by Michael W McLean FAICD, CMC, FAOQ

WDScott [email protected]

+61419225996

22 August 2007

Sydney

Hong Kong

London

New York

Presentation topics

The American simplification to Toyota’s Production System called ‘Lean’ and a continuousimprovement program called Six Sigma™by Motorola

1. Understand the drivers for change within the business plan and how the continualimprovement intervention supports or enables its delivery

2. Define who are the various organisation stakeholders, the current and likely expectationsto assist selecting a CI intervention

3. Access your Business or QM System and determine if it is process based or clausebased (Opportunity for Improvement) for identifying processes

4. Assess what the business plan goals or strategy map, stakeholder needs, QMS processand customer issues or ‘Rules’ that drive the business

5. Select the ‘Tools’ that best meet the needs of the business and its stakeholders thatdeliver quality, cost and delivery targets

6. Utilise a Productive Learning System©’ for Adult Learning respecting past and currentchange initiatives, resourced and enable the Engage People process to eliminate waste

7. Integrate within the Business (Integrated Management System) the lessons learned,improvement, problem resolved, causes eliminated, procedural process changes andaudit to business plan and scorecards

Top

ics

WDScott : History

WDScott was founded in 1938 by Sir Walter Scott

• It grew to be Australia’s largest international management consulting brand –known for integrity, excellence and results using their structured and highly testedIntellectual Property and Knowledge base with clients internationally

• Introduced Cost Management and Activity Based Costing techniques 1940’s

• Project Managed Australia’s transition to Decimal Currency – 14 February 1966

• Designed and managed formation of Joint Accreditation Standards of Australiaand New Zealand - JASANZ

• Sponsored Dr Joe Juran USA Statistical Process Control tools and techniquestour 1963

• Sponsored Dr Peter Drucker USA tour of Australia 1970’s

• Distributor Paul B Mulligan USA Clerical Measurement and Organisation &Methods 1970’s

• Distributor of Juran Institute USA Total Quality programmes and training 1980’s

• Distributor QCI International USA training, programmes and materials 1980’s

His

tory

Six Sigma™History

“Motorola invented Six Sigma™[US Patent and Trademark Office SN: 74199225 and RN:1813630] in 1987 to raise the bar and focus the quality debate on parts per million, and insome cases, parts per billion. We strive to optimise our production processes by ensuring

that there are six or less standard deviations within the specifications of any given process.

• Our goal is to make business and life simpler, smarter, synchronized and safer by creatingleadership products and services that put intelligence everywhere”.

• While Six Sigma remains at the heart of our internal processes, our vision has widened toensure that excellence is permeated through every aspect of our business”.

Mot

orol

aH

isto

ry

Performance Excellence Business System

“Shaping customer perceptions by creating an environment of trust through customercommunication and engagement. We call this Total Customer Satisfaction.By anticipatingcustomer needs, demonstrating innovation and gaining customer loyalty, Motorola iscontinuously striving to build relationships with customers that are built on a solid foundation oftrust.

• Motorola will continue to focus on providing customers with products that make their livessmarter, simpler, synchronized and safer. We believe the best way to accomplish this is throughthe successful implementation of the Performance Excellence Business System and is realizedthrough seven key areas:

– 1.Leadership– 2.Strategic Planning [Quality is a key factor in developing Motorola's business strategy]– 3.Customer and Market Focus,[quality demands are at the heart of any strategic plan

Motorola develops]– 4.Fact-Based Decisions– 5.Human Resources [ Attracting and retaining good employees to maintain high levels of

quality]– 6.Process Management [Six Sigma focuses us on continuous improvement of all of our

internal processes] and– 7. Business Results”

Mot

orol

aP

erfo

rman

ceE

xcel

lenc

eB

usin

ess

Sys

tem

What is ‘Six Sigma™’ compared Dr W Shewhart's definition

•Dr Mikel Harry & Richard Schroeders’ “TheSix Sigma Way” say it is ‘the most powerfulmanagement tool ever devised’.

•They say that Six Sigma ‘provides specificmethods to re-create the process so thatdefects and errors never arise’.

• Process is not always centered so Motorolagives a +/- 1.5 Standard Deviation Drift in itsdefinition of ‘Six Sigma’ and goes on to say‘Six Sigma are Tolerances’ so they can attainthe maximum Defect per Unit of 3.4 parts permillion goal i.e. 9 ’”

•Dr Walter Shewhart at Bell Laboratories in1924 to his boss about the concept of usingstatistics to control process quality and laterpublished it in a paper called “EconomicManufacturing ………” in 1929.

•He invented the Control Chart to plot how aprocess varies over time with enoughsamples to calculate the upper and lowerprocess or control limits. The ‘Voice of theProcess’ as it operated at +/- 3 Sigma or ‘’or as some said ‘6’ and 99.73% confidence& embedded in every Control Chart andHistogram ‘Voice of the Customer’

Motorola University & others 1985-7 Dr Walter Shewhart Bell Labs 1929

Lower Spec’n Upper Spec’nAllgal TargetLower Spec’n Upper Spec’nAllgal Target

Dilbert has a view of course

DynCorp USA Six Sigma™survey – most used Tools

Process Mapping - 80.8%Root Cause Analysis - 77.7%Cause and Effect Analysis - 76.3%Benchmarking - 75.0%Control Charts - 73.7%Performance Metrics - 67.9%Problem Solving - 67.4%Statistical Process Control - 67.0%Failure Mode Effect Anal. - 67.0%Process Capability - 64.7%Project Management - 63.4%

DynCorp USA Six Sigma™survey – most valuable tools

Six Sigma ™- 53.6%Process Mapping - 35.3%Root Cause Analysis - 33.5%Cause and Effect Analysis - 31.3%LEAN Thinking/Manufacturing - 26.3%Benchmarking - 25.0%Problem Solving - 23.2%9000 Series - 21.0%Process Capability 20.1%Statistical Process Control - 20.1%Performance Metrics - 19.2%Control Charts - 19.2%Process Management - 18.8%

Dr Deming changed Shewhart’s PDCA cycle to PDSA and is theterm used in Automotive ISO TS16949

• Dr Deming said “check could mean toblock, or pull up short, or rein in, andthat’s the last thing you want to do”.[Quality or Else page 280]

• Philip Caldwell Chairman, Ford MotorCompany 1981 also requested thatContinuous Improvement or ‘never-ending improvement sounded like toolong a time’ be changed to ContinualImprovement ‘as it did not sound nearlyas long’ hence Automotive QMS TS2[TS16949] is Continual and uses PDSA

SPC Rule: Stability before Capability

‘Kaizen’ is seen by the Japanese as THE vehicle for ContinuousImprovement

• “Japan’s PDCA practitioners viewstandards as the place for doing abetter job next time

• Management can be broken downinto two elements: Maintenance andImprovement

• It is important that current standardsbe stabilised

• Such a process of stabilisation isoften called the SDCA (Standardise-Do-Check-Action) cycle – only whenthe SDCA cycle is at work can wemove onto upgrading the currentstandards through the PDCA cycle

• Management should have both theSDCA and the PDCA cycles workingin concert all the time”. M Imai

SDC

A

SDC

APDC

A

PDS

A SDS

A

Maintenance

Maintenance

Maintenance

KAIZEN

ISO9001:2000 &2007 Draft

TS2/TS16949:2000Ford Motor Coy and

Dr Deming 1990

Source: ‘KAIZEN’ M Imai p64

Sources: AIAG USA;International Organizationfor Standardisation and‘Quality or Else’ p280

VA/VE Definitions and sources

“Value Engineering is the cost reduction activity thatinvolves basic functional changes in the new productdevelopment stage”. This is the biggest cost savingsachieved in product design stage (The Toyota Way)

“Value Analysis is the cost reduction activity that involvesdesign changes of existing products”. Source: “ToyotaProduction System – linking the Seven Key FunctionalAreas”. Yasuhiro Monden.

VE techniques were first developed at GE by Lawrence DMiles

Value Management Standard AS4183-2007

The “Customer” really does know!

Look Lady, You're the one who asked for a Famous MovieStar with dark hair, strong nose and deep set eyes

The Problem of Inadequate Specifications

Deploying Strategy through Processes assessed against EFQM

000dCIP4.ppt/O:mg

Shareholders

ENVIRONMENTALSCAN AND

STAKEHOLDER NEEDS


STAKEHOLDER NEEDS

STRATEGICANALYSIS

& RISKASSESSMENTS

STRATEGICANALYSIS

& RISKASSESSMENTS

STRATEGICINTENT

AND GOALS

STRATEGICINTENT

AND GOALS

STRATEGICEVALUATIONSTRATEGICEVALUATION

MANAGEMENTOBJECTIVES


Actions

BCD

Enterprise Resources

Division Budgets

Function Integration

Process Measure

Individual Accountable

Team Responsible

1

Years

EXECUTION OBJECTIVES

5432A

Assess

Stakeholders

Employees

Community

Customers

“Suppliers”

BUSINESS /CORPORATE

PLAN

BUSINESS /CORPORATE

PLAN

Operations,People &

Processes toDeliver Strategy

Processes

TechnologyResources

InformationSkills

Values Structure

Behaviour

People

EFQM Business Excellence Model

Leadership Processes

KeyPerformance

Results

People

Partnerships andResources

People Results

Society Results

Supporting

Policy and Strategy Customer Results

ENABLERS RESULTS

INNOVATION AND LEARNING

leading to excellence in

achieves

through

DIVISIONALPLANS

DIVISIONALPLANS

Skills

ProcessPerformance

Review/Audit &Improvement

000dCIP4.ppt/O:mg

Shareholders


STAKEHOLDER NEEDS


STAKEHOLDER NEEDS

STRATEGICANALYSIS

& RISKASSESSMENTS

STRATEGICANALYSIS

& RISKASSESSMENTS

STRATEGICINTENT

AND GOALS

STRATEGICINTENT

AND GOALS

STRATEGICEVALUATIONSTRATEGICEVALUATION



Actions

BCD


Division Budgets


Process Measure


Team Responsible

1

Years

EXECUTION OBJECTIVES

5432A

Assess

Stakeholders

Employees

Community

Customers

“Suppliers”

BUSINESS /CORPORATE

PLAN

BUSINESS /CORPORATE

PLAN

Operations,People &

Processes toDeliver Strategy

Processes

TechnologyResources

InformationSkills

Values Structure

Behaviour

People



KeyPerformance

Results

People


People Results

Society Results

Supporting


ENABLERS RESULTS

INNOVATION AND LEARNING


achieves

through



KeyPerformance

Results

People


People Results

Society Results

Supporting


ENABLERS RESULTSENABLERSENABLERS RESULTSRESULTS

INNOVATION AND LEARNINGINNOVATION AND LEARNING


achieves

through

DIVISIONALPLANS

DIVISIONALPLANS

Skills

ProcessPerformance

Review/Audit &Improvement

Qatar Transport Plan on a Page for Asian Olympic Games

KPI’s

4

3

2

1

WhoObjectivesGoals

KPI’s

4

3

2

1

WhoObjectivesGoals

MissionProvide taxi, limousine, public and eventtransport vehicles and services for the publicand visitors to QATAR

Goals/KRA’s: Customer driven; Financiallyviable; Qatarisation; Enhance image ofQatar; Employer of Choice; Internationalfranchisor; IPO within 4 years

Our Values: Service Safety Teamwork Integrity Innovation Results

Our MetricsQuality

Appearance

Timeliness

AccuracyResponsiveness


Division Budgets


Process Measure / KPI


Deployment

QTC Stakeholders and Scorecards

Goals/KRAs

ProcessesFinancialPeopleCustomers

KPI ’s

4

3

2

1

WhoObjectivesGoals

2004

2006

2005

ExcellentCustomer

Experience

Feedback

Vision: Be a regional leader in the provisionof integrated ground transport solutions

Goals/KRAs Goals/KRAs Goals/KRAs

Actions& Budget

BCD

1PERIOD

5432A

Department Action Plan

Actions& Budget

BCD

1PERIOD

5432A


Actions& Budget

BCD

1PERIOD

5432A


KPI’s

4

3

2

1

WhoObjectivesGoals

KPI’s

4

3

2

1

WhoObjectivesGoals

MissionProvide taxi, limousine, public and eventtransport vehicles and services for the publicand visitors to QATAR

Goals/KRA’s: Customer driven; Financiallyviable; Qatarisation; Enhance image ofQatar; Employer of Choice; Internationalfranchisor; IPO within 4 years

Our Values: Service Safety Teamwork Integrity Innovation Results

Our MetricsQuality

Appearance

Timeliness

AccuracyResponsiveness


Division Budgets


Process Measure / KPI


Deployment

QTC Stakeholders and Scorecards

Goals/KRAs

ProcessesFinancialPeopleCustomers

KPI ’s

4

3

2

1

WhoObjectivesGoals

2004

2006

2005

ExcellentCustomer

Experience

Feedback

Vision: Be a regional leader in the provisionof integrated ground transport solutions

Goals/KRAs Goals/KRAs Goals/KRAs

Actions& Budget

BCD

1PERIOD

5432A

Department Action PlanActions

& Budget

BCD

1PERIOD

5432A


Actions& Budget

BCD

1PERIOD

5432A


& Budget

BCD

1PERIOD

5432A


Actions& Budget

BCD

1PERIOD

5432A


& Budget

BCD

1PERIOD

5432A


Toyota on this Process stuff – M Hammer

See Sloan: “Process Management and the Future of Six Sigma and Hammer Group website

Processes are key to deploying a strategy to people

WDScott ’14 Dimension’ Framework

‘Why’‘The Business Rationale provides theanswer to the question as to ‘why’processes are executed’...

‘What’‘Process describes ’what’is needed to deliver the

‘why’... ‘How‘The ‘why’ and ‘what’ determine therequirements of all enablers of theprocess - the ‘how’...

Transition should involve a staged approach in order to minimizerisk and investment ahead of business success...

Direction &Customer

SegmentationAlignment

CompetitiveEnvironment

CustomerSegmentation

Strategy &Measurement

Customer/Consumer

Product

Channel

Media

Purpose

Direction &Customer

SegmentationAlignment

CompetitiveEnvironment

CustomerSegmentation

Strategy &Measurement

Customer/Consumer

Product

Channel

Media

Purpose

be from left to right...

From‘As Is’

To‘To Be’

Leadership & Culture

infrastructure

Technology,Applications,

Networks, Systems

Structure & Skills

Information

Leadership & Culture

infrastructure

Technology,Applications,

Networks, Systems

Structure & Skills

InformationBusiness ProcessesBusiness Processes

M Hammer - “Process Models”

Qatar Transport Company [Mowasalat] Integrated ManagementSystem Process Map – meeting multiple Standard requirements

12. Plan and ManageConsumables andSupplier Relations

2. Market, Sell & Distribute Transport Solutions

Design &Modify

Blueprint

Dohaand GCCMarket

Research, Planand Model the

Business

1. TC StrategicPlan

14. Plan andReview

ManagementSystems

Compliance

13. Receive Cash,Payments and Pay forServices

Integrated Management System Scope

Passenger and Event Client Feedback

13. ProvideFinance

10. ProvideEquipment, Facilities

and Vehicles

9.Plan, ProvideTraining, Assessment

and Mentoring

11. Plan, Provideand Maintain ICT

8. Plan, Provideand MaintainPeople (HR)

15. Measure, Review andImprove Performance

Scorecards

QATAR GCCCustomers & Visitors

Satisfaction

VALUE CREATIONPROCESSES

SYSTEM SUPPORTPROCESSES

CORPORATESUPPORT

PROCESSES

EstablishFleet

Needs &Offer

3. Deliver Taxi and Limousines Services

4. Deliver MPV, Mini Bus, Bus, Coach Mass Transit

5. Coordinate and Deliver Event Solutions

16. Audit, Review and ManageBusiness Information

6. Resource and Service Car Fleet Services

7. Receive and book vehicles (Call Centre)

ISO

9001

ISO

18000

ISO

14001NVQ

External Standards

ISO TS16949 [2002] TS2 : “Determine processes, sequence and interaction,

criteria and methods to ensure operation and control of processes.

• ISO TS16949 provides guidance to Supplier Executives of where thecurrent and future 5% OEM stated Cost Downs and ‘Zero Tolerance’can come from:– “Process Efficiency - Top management shall reviewproduct realization (core or value adding) and supportprocesses to assure their efficiency and effectiveness”

– Provide resources to support processes. Monitor andanalyse processes”.

• If your Business / Quality MS Manual has is structured by the TS-2Elements [Right] – you have an in-built cost disadvantages and for themost part, you will be not able to achieve process stability [Voice of theProcess] and then process capability [Voice of the Customer].

ISO TS16949 [2002] TS2 : Overlay the Quality, OH&S, Risk, ITIL, Governanceand Environmental element requirements onto Business Process

7

ISO18001

OH&S

47

ISO14001TS2

14. Reviewand improveperformance

8. Plan,provide &maintainPeople

2. Design &EngineerProduct

964BusinessProcessDescription

AllElements

ISO18001

OH&S

All Elements

ISO14001TS2

8.3 Control ofnon-conformingproduct

8.1Measurement,analysis andimprovement

7.1 Planning ofProductRealization

AllElements

StandardClause

A Process Based IMS relationship matrixto show relationship to the TS2 and

other Management System requirements

Clause/Elemental Based MS relationship matrixto show relationship to the TS2 and other

Management System requirements

GM Powertrain Global Quality System based upon “Juran Trilogy”

WorldClassQuality

Six Sigma™ Capability and Statistical Problem Solving

Common ProcessesISO TS16949/ISO9001/ISO14001 Certified Systems

Quality Network Foundation

CS FACCCIDC PA PR

Vehicle and Engine Development ProcessVehicle and Engine Development Process

Measurement and FeedbackVoice of Process and Voice of Customer

Variation ReductionGM GlobalManufacturingSystem

Quality Plan foreach part

QualityImprovement

Quality ControlQuality Planning

Pla

nne

dQ

ual

ity

Lev

el

Work Simplification and Value – Mr Toyoda understood

“Work Simplification was invented by Allan Mogensen in 1937 where he created the onlyflowcharting tool that identifies value and non-value added activities: The Flow ProcessChart”. It is a USA ASE and ILO Standard form Source: Quality Digest January 1989. USA

“The first question in the Toyota Production System is – ‘what does the customer(internal and external) want from this process? This defines ‘value’ as you observe aprocess and identify the value and non-value added steps.” Taiichi Ohno and ‘TheToyota Way’ by Dr Jeffrey K Liker

__________________Company ValueAnalysis by

FlowProcessCharting

Flow ProcessChart Tool WDScott Tool #4 Process Name

No Time No Time No Time

OperationsMove/Transport Department:Check/Inspect _______________________________Wait/Delay Process from: ___________________Decide _______________________________File/Store To:____________________________Quantity Produced Item charted: _____________________Cycle Time No: ___________________________Distance Travelled Charted by: ____________________Documents Used Date: __/__/2006

Detail of activity or task

Present MethodProposed Method

2

Ac

tivity

Cyc

leT

ime

De

cisi

ons

File

/Sto

re

Ope

rati

on[V

alue

Ad

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Tra

nsp

orto

rM

ove

Insp

ecti

ons

or

Che

ck

De

lays

orW

ait

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ofp

ossi

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chan

ges:

Ask

Wha

t(st

ep),

Whe

re(p

lace

),W

hen

(se

quen

ce),

Who

(per

son)

,How

(met

hod)

and

Why

(just

ifica

tion)

toid

entif

yop

port

uniti

esto

CO

MB

INE

,ELI

MIN

ATE

orIM

PRO

VEPresent Proposed Difference

Process Comments /Lean / Six Sigma / BPR /

CI initiative impact

Suppliers must be stable then capable in their own ProductionSystem to then supply Toyota

TPS “Shikume” Chart or “Value Stream Mapping” in Lean

Information

Material Flow

EX.

PLANT 3Crossdocking

10 Pickupsper Day

8 Pickupsper Day

PLANT 4 CUSTOMER 1

CUSTOMER 2

e1x per day

8:00 AMn-1

PLANT 1Warehouse

Daily Shipping Schedule

Cust.

N1N2

7 8 9 10 11 12 13 14 15 16 17

1

2

3

4

5

6

7

8

9

10

11 12

13

14

15

16

17

18

Safety Stock Buffer Stock

.5 Day .25 Days

Milkrun3 Pickupsper Day

PLANT 2

Assy

Staging

Staging

1

2

Staging

Day N1-6

7-12

Unload

YNA-ECopied

e

Orders Sent18X/Day

Check PlannedReceipts vs.

Actual Receipts

Truck Staging Day1st 12PM - 6PM N2nd 6PM - 12AM N3rd 6AM - 12PM N+1

Day N+1

Day N+1

Leveling Box

Assigns YNA--E Truck CodePrint Cards

Supplier Kanban

PLANT A

PLANT B13 - 18

YNA- E TruckCode

Stage by Truck Code(Day N + TMMK Truck #)

(e.g. 05-30-02 #4)

Unload in sequential Order(Truck 1 loaded = Unload

Truck 1 Day N- 3)

Trucks loaded so canbe rem oved in

sequential order.

ReadBarcode

When Pulled

Leveling Box456

Ahead/BehindLevel W ork

Deliver Finished GoodsBackhaul Raw Materials & Empty Containers

EmptyTotes

Milkrun3 Drop-offs

per Day


Drop FG & Pickup RM1st Pickup at 7:00 AM2nd Pickup at 1:00 PM3rd Pickup at 7:00 PM

Drop RM & Pickup FGAt Buenaventura

1st Pickup at 7:00 PM2nd Pickup at 1:00 AM3rd Pickup at 1:00 PM

e

Email Ordersback 18 x/day

OtherSuppliers -Send Email1X per day

Based on time of day card ispulled at Buenaventura:6AM to 12PM Truck 112PM to 6PM Tuck 26PM to 12PM Truck 3

1 Day

Daily Order

6 Hrs1 Hr1 Hr

Safety Stock

1 DayELCOM1 Day

HAIBARATape, Tube, Term.

JB's & RB's

CCCTerminals

SUMITOM OConnectors

1.75 Days2 Days1.25 Days

Date: 05-30- 02

Date: 05-30- 02

Date: 05-30- 02

Breakdown Areafor Partial Pallets

1 Day3 Days1 Day5 DaysUS 2 DaysJapan 20 Days

6 MonthForecastMonthly

Monthly Adjustment to System (1x per month)

ReviewChanges inCustomerDemand

RecalculateStore Sizes

ReviewChanges in

ProcessCapability

Plan toAdjust

Target Condition for Model Line Flowpath

Target =16 Days

Kanban Cycle1 - 8 - 8


Kanban Cycle1 - 5 - _


ELCOMTube & Wire

ELCOMConectors

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Truck 1

Truck 2

Truck 3

3

1 2 3

N-2 Trucks7 AM

10 AM

1 PM

4 PM

7 PM

10 PM

4 5 6

7 8 9

10 11 12

13 14 15

16 17 18

#1 #2 #3

Sent W hen Order Pulled

#4 #5 #6

#7 #8 #9

Sideloading

Sideloading

Potentially to YNA- L

Supplier Kanban

YNA- ETruck Code

e

Email OrdersDaily

Safety Stock

1 Day

Mixed Loads(Increase Frequency if Possible)

PLANT C

SUPPLIERS

Information

Material Flow

EX.

PLANT 3Crossdocking

10 Pickupsper Day

8 Pickupsper Day

PLANT 4 CUSTOMER 1

CUSTOMER 2

e1x per day

8:00 AMn-1

PLANT 1Warehouse


Cust.

N1N2

7 8 9 10 11 12 13 14 15 16 17

1

2

3

4

5

6

7

8

9

10

11 12

13

14

15

16

17

18


.5 Day .25 Days


PLANT 2

Assy

Staging

Staging

1

2

Staging

Day N1-6

7-12

Unload

YNA-ECopied

e

Orders Sent18X/Day


Actual Receipts


Day N+1

Day N+1

Leveling Box


Supplier Kanban

PLANT A

PLANT B13 - 18

YNA- E TruckCode


(e.g. 05-30-02 #4)


Truck 1 Day N- 3)


sequential order.

ReadBarcode

When Pulled

Leveling Box456



EmptyTotes

Milkrun3 Drop-offs

per Day





e




1 Day

Daily Order

6 Hrs1 Hr1 Hr

Safety Stock

1 DayELCOM1 Day


JB's & RB's

CCCTerminals

SUMITOM OConnectors


Date: 05-30- 02

Date: 05-30- 02

Date: 05-30- 02







ReviewChanges in

ProcessCapability

Plan toAdjust


Target =16 Days





ELCOMTube & Wire

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Truck 3

3

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N-2 Trucks7 AM

10 AM

1 PM

4 PM

7 PM

10 PM

4 5 6

7 8 9

10 11 12

13 14 15

16 17 18

#1 #2 #3


#4 #5 #6

#7 #8 #9

Sideloading

Sideloading


Supplier Kanban

YNA- ETruck Code

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Email OrdersDaily

Safety Stock

1 Day


PLANT 3Crossdocking

10 Pickupsper Day

8 Pickupsper Day

PLANT 4 CUSTOMER 1

CUSTOMER 2

e1x per day

8:00 AMn-1

PLANT 3Crossdocking

10 Pickupsper Day

8 Pickupsper Day

PLANT 4 CUSTOMER 1

CUSTOMER 2

e1x per day

8:00 AMn-1

PLANT 1Warehouse


Cust.

N1N2

7 8 9 10 11 12 13 14 15 16 17

1

2

3

4

5

6

7

8

9

10

11 12

13

14

15

16

17

18


.5 Day .25 Days

PLANT 1Warehouse


Cust.

N1N2

7 8 9 10 11 12 13 14 15 16 17

1

2

3

4

5

6

7

8

9

10

11 12

13

14

15

16

17

18


.5 Day .25 Days


PLANT 2

Assy

Staging

Staging


PLANT 2

Assy

Staging

Staging

1

2

Staging

Day N1-6

7-12

Unload

YNA-ECopied

e

Orders Sent18X/Day


Actual Receipts

Truck Staging Day1st 12PM - 6PM N

1

2

Staging

Day N1-6

7-12

Unload

YNA-ECopied

e

Orders Sent18X/Day


Actual Receipts


Day N+1

Day N+1

Leveling Box


Supplier Kanban

PLANT A

PLANT B13 - 18

YNA- E TruckCode


(e.g. 05-30-02 #4)


Truck 1 Day N- 3)


sequential order.

ReadBarcode

When Pulled

Leveling Box456


PLANT A

PLANT B13 - 18

YNA- E TruckCode


(e.g. 05-30-02 #4)


Truck 1 Day N- 3)


sequential order.

ReadBarcode

When Pulled

Leveling Box456



EmptyTotes

Milkrun3 Drop-offs

per Day





e




1 Day

Daily Order

6 Hrs1 Hr1 Hr

Safety Stock

1 DayELCOM1 Day


JB's & RB's

CCCTerminals

SUMITOM OConnectors


Date: 05-30- 02

Date: 05-30- 02

Date: 05-30- 02



EmptyTotes

Milkrun3 Drop-offs

per Day





e




1 Day

Daily Order

6 Hrs1 Hr1 Hr

Safety Stock

1 DayELCOM1 Day


JB's & RB's

CCCTerminals

SUMITOM OConnectors


Date: 05-30- 02

Date: 05-30- 02

Date: 05-30- 02







ReviewChanges in

ProcessCapability

Plan toAdjust







ReviewChanges in

ProcessCapability

Plan toAdjust


Target =16 Days





ELCOMTube & Wire

ELCOMConectors

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Target =16 Days





ELCOMTube & Wire

ELCOMConectors

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N-2 Trucks7 AM

10 AM

1 PM

4 PM

7 PM

10 PM

4 5 6

7 8 9

10 11 12

13 14 15

16 17 18

#1 #2 #3


#4 #5 #6

#7 #8 #9

Sideloading

Sideloading


Supplier Kanban

YNA- ETruck Code

N-2 Trucks7 AM

10 AM

1 PM

4 PM

7 PM

10 PM

4 5 6

7 8 9

10 11 12

13 14 15

16 17 18

#1 #2 #3


#4 #5 #6

#7 #8 #9

Sideloading

Sideloading


Supplier Kanban

YNA- ETruck Code

e

Email OrdersDaily

Safety Stock

1 Day


PLANT C

SUPPLIERS

Dr Jeffrey Liker’s “The Toyota Way” book extracts

Dr Jeffrey Liker’s “4 P Model” in The Toyota Way

Liker’s view of most ‘Lean’ Programs

Toyota - the four rules

Rule 1: All work shall be highly specified as to content, sequence, timing,and outcome.

Rule 2: Every customer - supplier connection must be direct, and theremust be an unambiguous yes or no way to send requests andreceive responses.

Rule 3: The pathway for every product and service must be simple anddirect.

Rule 4: Any improvement must be made in accordance with the scientificmethod, under the guidance of a teacher and at the lowestpossible level in the organisation

– Spear. S. & Bowen K H. “Decoding the DNA of the ToyotaProduction System”. Harvard Business Review September -October 1999

The outcome of Toyota’s Production System

• Toyota as at 2007: Profit of US$15 billions; 55% of Automotive IndustryMarket Capitalization

• GM, Ford, Chrysler as at 2007: Losses of US$20 billions; 5% of AutomotiveIndustry Market Capitalization

• Toyota 2007 to 2010 Goals: Source: Barry Budge, Corporate PurchasingManager, Customer First, Toyota Australia– 50% Growth [currently over 9.6million vehicles and in April ranked #1

Automotive Company – 12% market share] and– 50% Cost Down by end of 2010 – on track to achieve Cost Down target by

2009

Selecting CI/Lean/SS Projects optimised to Stakeholder needs

Maintenance:___________________________________________________________________________

Engineering:___________________________________________________________________________

Quality :______________________________________________________________________________

SupportProcesses

CoreProcesses

or Product

Realisation

Delivery

• IFOT

• Turns

• Storage

Cost

• Cost/Metre

• OPEX

• CAPEX ROI

Quality

• 7.5 mg/sqm

• Right 1st

Time

• Compliance

Production

• 14 metres/m

• OEE 80%

• Inventory

Safety

• LTIFR

• Risk

• Loss control

ProcessOwner

PreventiveAction and

PFMEA

ControlCharts,

Histograms

Process Re-designVA/VE& Lean

SupplyChain

QualityCircle

ProcessControl Plan Breakthrough (Dr

Juran / Six Sigma™)

TPM/ 5S

MRPII &TAKTDFMEA

andPFMEA

Corporate common metrics throughout

1 2

Maintenance:___________________________________________________________________________

Engineering:___________________________________________________________________________

Quality :______________________________________________________________________________

SupportProcesses

CoreProcesses

or Product

Realisation

Delivery

• IFOT

• Turns

• Storage

Cost

• Cost/Metre

• OPEX

• CAPEX ROI

Quality

• 7.5 mg/sqm

• Right 1st

Time

• Compliance

Production

• 14 metres/m

• OEE 80%

• Inventory

Safety

• LTIFR

• Risk

• Loss control

ProcessOwner

PreventiveAction and

PFMEA

ControlCharts,

Histograms

Process Re-designVA/VE& Lean

SupplyChain

QualityCircle

ProcessControl Plan Breakthrough (Dr

Juran / Six Sigma™)

TPM/ 5S

MRPII &TAKTDFMEA

andPFMEA

Corporate common metrics throughout

1 2

Roles in Lean, CI and Six Sigma™projects

WorkBoundary

BoundaryDescription Manufacturing Process IND F CF ML CF&ML

Individual or Team ResponsibilityExamples

25%

50%

75%

100%

25%

50%

75%

100%

75%

100%

25%

50%

75%

100%

25%

50%1

Task

Activity

1 2 3

Function Time

Sales

Prod’n

Despatch

Accounts

Process

System

Small element or job within anactivity

Combination of a number oftasks in sequence within aprocess

A series of changes by whichsomething develops or amethod of doing something,with all steps in sequence.

A combination of processeswithin or across functionsconnected to form a whole.

Drill a Hole

Drill, Tap, CleanHole and Insert

bolt

Produce andassemble AirConditioner

Production System• Plan Production• Source Material• Consumables• Suppliers• SCADA

MAINT’CE SECURITY OH&S

ACCOUNTING QUALITY LEGAL

MIS

HR

Enter Data onProcess Log, adjustEquipment as per

Procedures

Analyse Processperformance,

adjust and record

Manage Teamand ReportProduction

Performance andTeam issues

• AccountingSyst.

• ProductionSyst.

• Finance Syst.• HR Syst.• CI Syst.• Quality Syst.

Individuals

Team Leader

Supervisor

Management

% FocusWork

Boundary

BoundaryDescription Manufacturing Process IND F CF ML CF&ML

Individual or Team ResponsibilityExamples

25%

50%

75%

100%

25%

50%

75%

100%

75%

100%

25%

50%

75%

100%

25%

50%11

Task

Activity

1 2 31 2 31 2 3

Function Time

Sales

Prod’n

Despatch

Accounts

Function Time

Sales

Prod’n

Despatch

Accounts

Process

System

Small element or job within anactivity

Combination of a number oftasks in sequence within aprocess

A series of changes by whichsomething develops or amethod of doing something,with all steps in sequence.

A combination of processeswithin or across functionsconnected to form a whole.

Drill a Hole

Drill, Tap, CleanHole and Insert

bolt

Produce andassemble AirConditioner

Production System• Plan Production• Source Material• Consumables• Suppliers• SCADA



MIS

HR



MIS

HR

Enter Data onProcess Log, adjustEquipment as per

Procedures

Analyse Processperformance,

adjust and record

Manage Teamand ReportProduction

Performance andTeam issues

• AccountingSyst.

• ProductionSyst.

• Finance Syst.• HR Syst.• CI Syst.• Quality Syst.

Individuals

Team Leader

Supervisor

Management

% Focus

Extract of a Process Cause & Effect

Receive and storeraw material

Mix and StripSponge Rubber

Move and storesponge strip

ExtrudeRubber

lumps

RM Quality

Environment notclean

Mixing isvariable

Mills contaminatedwith foreign

particles

Foreignparticles inwork place

Tubs Dirty

Rubberstored too

long

Housekeeping

environment

Packaging

Environment

Supplier controls

Powder is clumped

Gets wet when packed in plastic

Main bins

Table not clean

Dust storms getinto factory

Unpackedmaterial left inopen

Housekeeping poor

Stored in open

Stuff blowsin

Strip drags on ground

Feed rollerscontaminated

Feed hoppers notcleaned

Door openVentilation neededForklift access

No FIFO

End ofbatch notused andstored

1 week leadtime needed formixingscheduling

Used as binsTrucks go pastand raise dust

Empty bins not returned

Lane Dirty

Bins not cleaned

Tubs stacked

Not enoughbins for colourcoding

Lots of dirt in locality

Sore too small

Poor discipline

Grease leaksfrom seals

Production pressure

Many small spacesto get contaminated

Hard to remove wrapping

No PM

Not allingredients aremixed in

Rhenogransmay not breakdown

Mixed productmay formlumps

Dusting processmay add chemicallumps

Some lumps getstuck in die

Small profile

No sievingWrong spec

“Productive Learning System” © - teach the competency applieddirectly to a project for capability e.g. Process Cause & Effect

Changi Airport Singapore 1988 - customer service projectscompleted during the ‘training’

“This is the 19th consecutive win ChangiAirport won since 1988. As the first awardChangi Airport ever received, this win isimportant to us and a confirmation ofpassengers’ faith in us. London 11/9/2006”

A Customer Service Management Program delivered to strategic intent byprocesses supported by an Adult Learning processes

Strategy analysis and planning session set avision to be ranked #1 in Customer serviceby 1989 - it was achieved during consultingengagement in 1988 to support SeoulOlympics for Customs, Police, Immigration,Security and Customer Service nowconducted by PSB

Process Flow identifying each stage in the process (written on yellow slips)

Identify any gaps in the process (written on yellow slips above process line)

Identify where the problems are occurring(written on pink slips at each stage of the process)

Determine corrective actions required:Training, Process, Method, SAP

(written on background sheet at stage of process required)

“Layered Process Audits” in the Automotive Sector

• ‘A Competency’ is an under lying characteristic of anindividual that is causally related to criterionreferenced, effective and/or superior performance in ajob or situation. It includes skills, knowledge, motives,physical characteristics, attitudes, values, self-concept”. (Spencer and Spencer).

• ‘Capability’ [The Potential]: is the person suitable forthe defined and other jobs – grooming for the future;usually mentoring program required

Defining Competency and Capability

Central and Surface Competencies (Adapted Spencer and Spencer)

Skill

Self-concept

TraitMotive

Attitude Values

KnowledgeSurface:

Trait Motive

Core Personality:Most difficult to

develop

Self-concept:Trait

Motive

SkillKnowledge

Visible

Hidden

The Iceberg Model

“Surface knowledge, skills and competencies are relatively easy to develop; training is the mostcost-effective way to secure these employees abilities”

“Core motive an trait competencies at the base of the iceberg, are more difficult to assess anddevelop; it is most cost-effective to select for these characteristics”

Boral National Competency Accreditations for CI

As an RTO, Boral employees have the opportunityof achieving a "formal qualification" (certificate IIthrough to diploma) in Manufactured MineralProducts, Road Transport and ExtractiveIndustries. Some of the competency units theyneed to achieve include:

PMC SUP 291A Participate in ContinuousImprovementPMC SUP 390A Solve Problems using QualityToolsBSX FMI 404A Participate, Lead and FacilitateWork Teams

Because of their prior (and ongoing)involvement in Continuous ImprovementProgram, some operators are able to apply forRPL (an automatic credit against thosecompetency units)

MAPPING EXERCISE SIX SIGMA COURSEPREREQUISIT UNITS of COMPETENCE

Mapped Units of competence Prerequisite Units of CompetenceCompetency Unit

CodeCompetency Unit Name Path Competency Unit

CodeCompetency Unit Name

MEM 2.7C10 Perform computations - basicMEM 2.14C5 A Use graphical techniques and performsimple statistical computations 1 MEM 2.8C10 Perform computations

MEM 15.1A A Perform basic statistical quality control - Nil NilMEM 15.3A A Use improvement processes in team

activities 1MEM 2.3C11 Operate in a work based team

environmentMEM 15.4A A Perform inspection (basic) - Nil Nil

MEM 2.7C10 Perform computations - basicMEM 2.8C10 Perform computationsMEM 2.14C5 Use graphical techniques and perform

simple statistical computationsMEM 15.1A A Perform basic statistical quality control

MEM 15.7B A Conduct product and/or processcapability studies

1

MEM 15.8B A Perform advanced statistical qualitycontrol

MEM 2.14C5 A Use graphical techniques and performsimple statistical computations

MEM 15.8B A Perform advanced statistical qualitycontrol 1

MEM 15.1A A Perform basic statistical quality controlMEM 15.12B B Maintain/supervise application of quality

procedures - Nil Nil

Australian Manufacturers map their Six Sigma Green BeltTraining to National Competencies

Dr A Burns and MW McLean Problem Solving process in Q-Skillsfor Six Sigma and at GE, Microsoft, Boeing, Telstra

May 2007

Change FIND & FIX to PREVENTION

•When the thrill and excitementof solving problems becomesdominant, your organisation isaddicted to problem solving.

Dr Juran is “The father of Total Quality Management” in Japanand what the Japanese said in a review of Ford Motor Company

"The only way to reduce cycle times and errorrates is to improve the processes we use to deliverour products and services".

Dr. Joseph JuranMr Tooka: Senior MD Toyota Automatic Loom Company and Dr Kusaba JUSE (1968):

“In some US Supplier Companies, top managementcontinues to believe they can improve quality by solvingproblems – this is truly a critical situation and a terminalillness in some companies – a ‘reactionary approach’.Quality will not improve in companies that follow thedefect correction idea. Japanese managers audit theprocess not the product”.

(‘Company-wide Quality Control for Automotive Suppliers’. LP Sullivan Ford Dearborn. Mi.USA. June 1968)

VisionProcess BasedOrganisation

PerformanceManagement

Skills &Resources

Mgt System& Platform Change

Mfg System

Vision GradualChange

Mgt System& Platform

Skills &Resources

Process BasedOrganisation

ConfusionMgt System& Platform

Skills &Resources



Vision AnxietyMgt System& Platform

Skills &Resources


FrustrationVision Mgt System& Platform



Vision False StartsSkills &

ResourcesProcess BasedOrganisation


Critical success factors for sustaining Six Sigma™

End Ways Means Outcome

What we covered

The American simplification to Toyota’s Production System called ‘Lean’ and a continuousimprovement program called Six Sigma™by Motorola

1. Understand the drivers for change within the business plan and how the continualimprovement intervention supports or enables its delivery

2. Define who are the various organisation stakeholders, the current and likely expectationsto assist selecting a CI intervention

3. Access your Business or QM System and determine if it is process based or clausebased (Opportunity for Improvement) for identifying processes

4. Assess what the business plan goals or strategy map, stakeholder needs, QMS processand customer issues or ‘Rules’ that drive the business

5. Select the ‘Tools’ that best meet the needs of the business and its stakeholders thatdeliver quality, cost and delivery targets

6. Utilise a Productive Learning System©’ for Adult Learning respecting past and currentchange initiatives, resourced and enable the Engage People process to eliminate waste

7. Integrate within the Business (Integrated Management System) the lessons learned,improvement, problem resolved, causes eliminated, procedural process changes andaudit to business plan and scorecards

Top

ics

Workshop review – what you keep, change and create toachieve the four Lean and Six Sigma™improvement

ChangeCreate

KeepAbout 80%

About 15%About 5%

DefineDefine

MeasureMeasure

AnalyseAnalyse

ImproveImprove

ControlControl

2. Process

Systems

4.B

reak

thro

ugh

3. Transformational

1. Six SigmaProblemSolving

ChangeCreate

KeepAbout 80%

About 15%About 5%

ChangeCreate

KeepAbout 80%

About 15%About 5%

DefineDefine

MeasureMeasure

AnalyseAnalyse

ImproveImprove

ControlControlDefineDefine

MeasureMeasure

AnalyseAnalyse

ImproveImprove

ControlControl

2. Process

Systems

4.B

reak

thro

ugh

3. Transformational


2. Process

Systems

4.B

reak

thro

ugh

3. Transformational


Source: “Keep, Change and Create” from “The Main Game”© draft book publication authorsGrp Capt. ( Retd) Doug Hurst and Michael W McLean

Workshop review – what you keep, change and create to achievethe End, Ways and Means in Lean and Six Sigma™

•B Plan on a Pagedeployed + scorecards

•Integrated MS

•Deployed to Process

•Process Owners

•Process Job Design

•Cross + Multi Levels

•Supplier Modules

•Business Plan on aPage deployed

•Element to Process MS

•Needs & expectations

•Process Structure

•Roles in Process

•Cross functional teams

•Supplier Partnership

•Strategic Plandeveloped

•ISOQMS

•Stakeholders needs

•Structure by Function

•People in Function

•Functional Teams

•Suppliers by Contract

CreateChangeKeep

microsoft powerpoint - copy aoq lean

Documents

process quality

process management

business resultspage

qms process

given process

business plan goals

customer needs

procedural process changes