part one (processes) - lean construction institute · might adopt for your quality journey ! ......

1

GROWTH MATRIXUSING SIX-SIGMA TO MEASURE THE POSITIVE IMPACT THAT “LEAN” HAS TO OFFER IN PROJECT DELIVERY

Michael Vega, PE / CPELCI San Diego, Community of Practices Community of Practices (CoP)January 16, 2014

PART ONE PART ONE (PROCESSES)(PROCESSES)


In 2004, Dr. Jeffrey Liker, a University of Michigan professor of industrial engineering, published The Toyota Way. In his book Liker calls the Toyota Way "a system designed to provide the tools for people to continually improve their work.”The system can be summarized in 14 principles.

2

GROWTH MATRIXUSING SIX-SIGMA TO CORRELATE THE TOYOTA 14 PRINCIPLES TO THE USA 3 PRINCIPLES

USA (3 PRINCIPLES)USA (3 PRINCIPLES)

DEPLOYED & POTENTIAL:THIS MANUFACTURINGTHIS MANUFACTURING

ENGINEERS “POINT” OF VIEW ENGINEERS “POINT” OF VIEW

IN TONIGHTS PRESENTATION I WILL CONVINCE YOU TO GO BEYOND “PULL SYSTEMS” AND EMBRACE THE OTHER 13 TOYOTA PRINCIPLES. AND IF I DO A GOOD JOB TONIGHT, YOU WILL SAY “OH, THEY MAKE WIDGETS ITS THE SAME AS CONSTRUCTION”

USING SIX-SIGMA TO MEASURE THE POSITIVE IMPACT THAT “LEAN” HAS TO OFFER IN PROJECT DELIVERY

THE PRESENTATION COVERS 13 MODULES AND CAN BEST BE DESCRIBED AS A “SAMPLER PLATE”, I AM AVAILABLE BY PHONE TO FILL IN ANY BLANKS THAT I LEAVE !

MY CHALLENGE TONIGHT IS TO TAKE TWO DIFFERENT

THEY MAKE WIDGETS ITS THE SAME AS CONSTRUCTION”

MY CHALLENGE TONIGHT IS TO TAKE TWO DIFFERENT INDUSTRIES AND DEMONSTRATE TO YOU THAT THE PROCESSES AND BUILDING BLOCKS (EXCEPT FOR THE EACH INDUSTRIES SLANG LANGUAGE) ARE THE SAME!

I WILL ALSO DISCUSS “SHOULD WE CONTINUE TO SELF CERTIFY”?

3

1. THE CONSTRUCTION INDUSTRY HAS ADOPTED THE TOYOTA PRODUCTION SYSTEM (TPS) AS ITS MODEL TO DEPLOY “LEAN CONSTRUCTION”.

2. THE CONSTRUCTION INDUSTRY, SPEAR HEADED BY LCI HAS FOCUSED ON THE “VITAL FEW” OF THE 14 TOYOTA PRINCIPLES, NAMELY “PULL SYSTEMS”

3. I AM HERE TONIGHT TO TALK ,“OBSERVATIONS”, “MEASUREMENT” AND “STANDARDS” THAT YOU MIGHT ADOPT FOR YOUR QUALITY JOURNEY !

DEPLOYED & POTENTIAL:THIS MANUFACTURINGTHIS MANUFACTURING

ENGINEERS “POINT” OF VIEW ENGINEERS “POINT” OF VIEW

4. I WILL PRESENT MY POINT OF VIEW IN 13 MODULES, STARTING OUT BY SHOWING A CORRELATION BETWEEN MANUFACTURING / CQI TERMS.

5. MY INTENT TODAY IS TO SUGGEST BY EXAMPLE THAT YOU USE “STATISTICIAL THINKING”, THAT MEANS USING METRICS & ANALYSIS TO ASSIST YOU IN MANAGING YOUR PROJECTS AS A ADDITIVE TO THE EXPERIENCE OF PAST PROJECTS.

6 BY USING “STATISTICIAL THINKING” YOU CAN ANALYZE POTENTIAL ISSUES AT A MACRO LEVEL

USING SIX-SIGMA TO MEASURE THE POSITIVE IMPACT THAT “LEAN” HAS TO OFFER IN PROJECT DELIVERY

6. BY USING “STATISTICIAL THINKING” YOU CAN ANALYZE POTENTIAL ISSUES AT A MACRO LEVEL (30,000 FT) VERY EARLY IN THE PROJECT LIFE CYCLE, GETTING MORE BANG FOR THE BUCK.

7. I WILL PRESENT TO YOU A CASE STUDY THAT WAS COMPLETED UTILIZING THE DESIGN & BUILD (D&B) DELIVERY METHOD AND MEASURED WITH SIX-SIGMA.

8. I WILL DISCUSS WITH YOU THE MAUNFACTURING INDUSTRIES (SME) LEAN CERTIFICATE PROGRAM , AND LATER I WILL DISCUSS 4 OF THE 20 TOOLS THAT I USE IN MY WORK.

9. I WILL CONCLUDE DESCRIBING HOW SIX-SIGMA PERFORMANCE MEASURES/METRIC WILL DEMONSTRATE TO YOUR CUSTOMERS THAT YOU ARE “LEAN”

•• MODMOD--01_THE EVOLUTION OF QUALITY WITHIN MANUFACTURING01_THE EVOLUTION OF QUALITY WITHIN MANUFACTURING•• MODMOD--02_(TOYOTA) DIAL02_(TOYOTA) DIAL--AA--CAR CAR vsvs (CONSTRUCTION) STATIC LINE ASSEMBLY & (CONSTRUCTION) STATIC LINE ASSEMBLY &

CONSTRUCTIONCONSTRUCTION•• MODMOD--03_THE EVOLUTION OF LEAN / SIX SIGMA03_THE EVOLUTION OF LEAN / SIX SIGMA•• MODMOD 04 14 PRINCIPLES OF THE TOYOTA WAY 04 14 PRINCIPLES OF THE TOYOTA WAY

AGENDAAGENDAPART-1, LEAN IN MANUFACTURING & CONSTRUCTION

•• MODMOD--04_14 PRINCIPLES OF THE TOYOTA WAY 04_14 PRINCIPLES OF THE TOYOTA WAY

GREEK(CONSTRUCTION)

HIEROGLYPHICS(QUALITY/MANUFACTURING)

ROSETTA STONE DISCOVERED IN 1799 IN EGYPT

(CONSTRUCTION)TERMS

(QUALITY/MANUFACTURING)TERMS

TONIGHT I WILL TRY TO BE THE ROSETTA STONE BETWEEN (CONSTRUCTION & MANUFACTURING)

4

•• MODMOD--01_THE EVOLUTION OF QUALITY WITHIN MANUFACTURING01_THE EVOLUTION OF QUALITY WITHIN MANUFACTURING•• MODMOD--02_MOD02_MOD--02_(TOYOTA) DIAL02_(TOYOTA) DIAL--AA--CAR CAR vsvs (CONSTRUCTION) STATIC LINE (CONSTRUCTION) STATIC LINE

ASSEMBLY & CONSTRUCTIONASSEMBLY & CONSTRUCTION•• MODMOD--03_THE EVOLUTION OF LEAN / SIX SIGMA03_THE EVOLUTION OF LEAN / SIX SIGMA•• MODMOD--04_14 PRINCIPLES OF THE TOYOTA WAY 04_14 PRINCIPLES OF THE TOYOTA WAY •• MODMOD 05 POINT & INDUSTRY COUNTERPOINT05 POINT & INDUSTRY COUNTERPOINT

AGENDAAGENDAPART-1, LEAN IN MANUFACTURING & CONSTRUCTION

•• MODMOD--05_POINT & INDUSTRY COUNTERPOINT05_POINT & INDUSTRY COUNTERPOINT•• MODMOD--06_WHAT OTHERS ARE DOING:THE S.M.E. LEAN MANUFACTURING 06_WHAT OTHERS ARE DOING:THE S.M.E. LEAN MANUFACTURING

CERTIFICATE PROGRAMCERTIFICATE PROGRAM--121 BODIES OF KNOWLEDGE121 BODIES OF KNOWLEDGE•• MODMOD--07_QUALITY CERTIFICATES THAT DENOTE “LEAN” TO YOUR CUSTOMERS07_QUALITY CERTIFICATES THAT DENOTE “LEAN” TO YOUR CUSTOMERS•• BREAKBREAK

•• MODMOD--08_HOW CAN SIX SIGMA (THE METRIC) BE USED AND ADAPTED TO 08_HOW CAN SIX SIGMA (THE METRIC) BE USED AND ADAPTED TO CONSTRUCTION.CONSTRUCTION.

•• MODMOD--09_THE COST OF PRECISION vs ACCURACY09_THE COST OF PRECISION vs ACCURACY•• MODMOD 10 TOYOTA PRINCIPLE #6 STANDARDIZED TASKS ARE THE FOUNDATION 10 TOYOTA PRINCIPLE #6 STANDARDIZED TASKS ARE THE FOUNDATION

PART-2, SIX-SIGMA IN MANUFACTURING & CONSTRUCTION

•• MODMOD--10_TOYOTA PRINCIPLE #6, STANDARDIZED TASKS ARE THE FOUNDATION 10_TOYOTA PRINCIPLE #6, STANDARDIZED TASKS ARE THE FOUNDATION OF C.Q.I.OF C.Q.I.

•• MODMOD--11_I PREPARED A DESIGN & BUILD CONSTRUCTION CASE STUDY FOR THE 11_I PREPARED A DESIGN & BUILD CONSTRUCTION CASE STUDY FOR THE SIXSIX--SIGMA INSTITUTE, I WILL DISCUSS THE RESULTS.SIGMA INSTITUTE, I WILL DISCUSS THE RESULTS.

•• MODMOD--12_MEANS & METHODS _ONE PIECE FLOW REMOVES (MUDA)12_MEANS & METHODS _ONE PIECE FLOW REMOVES (MUDA)•• MODMOD--13_4 QUALITY TOOLS TO FIND SOLUTIONS (MACRO LEVEL PLANNING13_4 QUALITY TOOLS TO FIND SOLUTIONS (MACRO LEVEL PLANNING))•• PLUS / DELTAPLUS / DELTA

#1-Long-term Philosophy

Toyota 14 Principles














POINT “A”

I BELIEVE

#9,#10 & #11 Value to Organization by

developing people

#12,#13 & #14 Solving root

bl

#2,#3, #4,#5 , #6,#7 & #8Right Process

produces right result

Dr. Joseph Juran, working in the US in the 1930s and

I BELIEVE THAT SOME FORM OF THE 80/20 RULE WAS USED TO GET FROM THE 14 TOYOTA PRINCIPLES TO problems

#3, Pull Systems

POINT “B”

40s recognized a universal 80/30 rule he called the "vital few and trivial many" and reduced it to writing.

TO PRINCIPLE #3, PULL SYSTEMS

5
















AFTER


developing people

#12 #13 & #14

#2,#3, #4,#5 , #6,#7 & #8Right Process


Principle 11. Respect your extended network of partners

POINT “B”

AFTER FINDING PRINCIPLE #3 AS THE “VITAL FEW” IS WAS A LOGICAL STEP TO FIND PRINCIPLE #12,#13 & #14

Solving root problems

#11, Partners & Suppliers

and suppliers by challenging them and helping them improve.

POINT “C”

PRINCIPLE #11, AND WITHIN #11 IS (IPD)

MOD-01The Evolution of Quality The Evolution of Quality

within Manufacturing within Manufacturing


6

VilfredoPareto -80-20 Rule

1

NOTICE THAT 80% OF THE FATHERS OF QUALITY ARE NOTICE THAT 80% OF THE FATHERS OF QUALITY ARE STATISTICIANS & 20% ARE MANUFACTURERSSTATISTICIANS & 20% ARE MANUFACTURERS

Walter Dr DEMING, SPC

Shewhart-SPC

Philip Crosby-Zero Defects

32

Bill Smith –Six SigmaGenichi Taguchi

TPS

Kaoru Ishikawa-Fishbone charts

DR DEMINGS CONTRIBUTION TO JAPAN1950-DEMING TEACHES SPC TO JAPANESS ENGINEERS

1965-TOYOTA WINS DEMING APPLICATION PRIZE

PLAN-DO-CHECK-ACT

MY GURU MY GURU

In 1960, the Prime Minister of Japan (Nobusuke Kishi), acting on behalf of Emperor Hirohito, awarded Deming Japan's Order of the Sacred Treasure, Second Class

The citation on the medal recognizes Deming's contributions to Japan's industrial rebirth and its worldwide success.

7

In 1906, Italian economist Vilfredo Pareto created a mathematical formula to describe the unequal distribution of wealth in his country, observing that twenty percent of the people owned eighty percent of

Vilfredo ParetoVilfredo Pareto

the wealth.

Where Vital Few & Trivial Many came from?

Dr. Joseph Juran, working in the US in the 1930s and 40s recognized a universal principle he called the "vital few and trivial many" and reduced it to ywriting.

As a result, Dr. Juran's observation of the "vital few and trivial many", the principle that 20 percent of something always are responsible for 80 percent of the results, became known as Pareto's Principle or the 80/20 Rule.

MY 2MY 2NDND GURU GURU

GROWTH MATRIX

FS

FF

SS THERE ARE ONLY 4 “LOGIC”

TYPES IN SCHEDULING!

MOD-02

DIAL-A-CAR

SCHEDULING (4) BUILDING BLOCKS

SF TYPES IN SCHEDULING!

CONSTRUCTION IS A “STATIC LINE”

vs

8

GROWTH MATRIX

GA

TE

LIN

E

STA

TIC

LIN

ES

THERE ARE ONLY3 TYPES OF

ASSEMBLY LINESIN MANUFACTURING

1 2

DIAL-A-CAR

PRODUCTION LINE

MANUFACTURING (3)BUILDING BLOCKS

3

vs

CONSTRUCTION IS A “STATIC LINE”

GROWTH MATRIX

GA

TE

LIN

E

STA

TIC

LIN

ES

FS

FF

SS

PRODUCTION LINE

SCHEDULING (4) BUILDING BLOCKS

SF

MANUFACTURING (3)BUILDING BLOCKS

REMEMBER-THINK BUILDING BLOCKS , DON’T LETTHROUGHPUT , COST ($) OR VOLUME DETER YOU

9

THE ”DIAL-A-CAR” CONCEPT DROVE SINGLE

MOD-02A

PIECE FLOW

IN MODULE 02-AI WILL DISCUSS “DIAL-A-CAR”I WILL DISCUSS DIAL A CAR

AND THEN SHOW AN IDEALIZED MANUFACTURING FLOW,

MACHINING CENTER ”CELLULAR”

BUCKET SHOPS_SHIP-RECEIVE-WAREHOUSE

QUEING FABRICATE

GA

TE

LIN

E

GA

TE

LIN

E

BUFFER-JIT STORES BUFFER-JIT STORES

DEALER TRANSMITS ORDER

CUSTOMER BUYS CAR

CAR MFGR CUTS PRODUCTION ORDER

”DIAL-A-CAR” CONCEPT DROVE SINGLE

REWORK STATION (STATIC LINE)

GATELINE

PRODUCTION LINE2ND TIER RE-TOOL

11MANUFACTURE

2ND & 3RD TIER SUPPLIERS

PIECE FLOW!ORDER

10



FABRICATEQUEING

GA

TE

LIN

E

GA

TE

LIN

E



CUSTOMER BUYS CAR


”DIAL-A-CAR” THE ORDER IS THE VOICE


GATELINE


11

ORDER

MANUFACTURE2ND & 3RD TIER SUPPLIERS

OF THE CUSTOMER



QUEING FABRICATE

GA

TE

LIN

E

GA

TE

LIN

E



CUSTOMER BUYS CAR


THE “CAR ORDER” IS THE VOICE OF THE CUSTOMER


GATELINE


11

ORDER

MANUFACTURE2ND & 3RD TIER SUPPLIERS

11

MANUFACTURING FROM THE “ORDER”

MOD-02B

“ORDER”TO THE SINGLE PIECE FLOW

IN MODULE 02-B I WILL SHOW AN IDEALIZED MANUFACTURING FLOW,

BUCKET SHOPS SHIP-RECEIVE-WAREHOUSE

CELLULAR MANUFACTURING

BUCKET SHOPS BUFFER STORE OR JIT SHIP


BUFFER STORAGE & JIT , CAN BE ANYWHERE ! BUCKET SHOPS_SHIP RECEIVE WAREHOUSE

BUFFER-JIT STORES

TIC

LIN

ES

TE

LIN

E

TIC

LIN

ES

MACHINING CENTER


1ST TIER RECEIVE (BUFFER/JIT) WAREHOUSE

PRODUCTION LINE

STA

T

GA

T

STA

T

SHUNT STANDSUB-ASSEMBLY, ASSEMBLY MANUFACTURING

12


HOGGING MACHINES = (ROUGH-IN)

FINISHING MACHINES = (FINISHES)


MACHINING CENTER

BUCKET SHOPS_SHIP RECEIVE WAREHOUSE

BUFFER-JIT STORES

TIC

LIN

ES

TE

LIN

E

TIC

LIN

ES

MACHINING SHOPS OR CENTERS:

IN MACHINING CENTERS PARTS MOVE BETWEEN “SINGLE PURPOSE” OPERATIONS AND RETURNED TO STORES

C O O

PRODUCTION LINE

STA

T

GA

T

STA

T

SHUNT STAND

ONE OPERATOR RUNS 1-1/2 MACHINE TOOLS

SUB-ASSEMBLY, ASSEMBLY MANUFACTURING

AFTER EACH OPERATION


ONE OPERATOR RUNS 3 MACHINE TOOLS (ELIMINATES “DWELL” TIME) WHERE OPERATOR IS IDLE.


MACHINING CENTER


BUFFER-JIT STORES

TIC

LIN

ES

TE

LIN

E

TIC

LIN

ES

MACHINING CENTER

CELLULAR MANUFACTURING:

IN CELLULAR MANUF PARTS MOVE BETWEEN “SINGLE PURPOSE” OPERATIONS AND MOVE TO THE NEXT OPERATION WITHOUT GOING TO

PRODUCTION LINE

STA

T

GA

T

STA

T

SUB-ASSEMBLY, ASSEMBLY SHUNT STANDSUB-ASSEMBLY, ASSEMBLY MANUFACTURING

WITHOUT GOING TO STORES

13




MACHINING CENTER


BUFFER-JIT STORES

TIC

LIN

ES

TE

LIN

E

TIC

LIN

ES

MACHINING CENTER

SUB-ASSEMBLY ASSEMBLY:

HEAVY ASSEMBLIES ARE “STATIC STANDS” AND PARTS MOVE TO THE SUB-ASSEMBLY, BASICALLY A HAND DONE ASSEMBLY,

O GOO O G

PRODUCTION LINE

STA

T

GA

T

STA

T


NOT GOOD FOR LARGE THROUGHPUT ASSEMBLIES






BUFFER-JIT STORES

TIC

LIN

ES

TE

LIN

E

TIC

LIN

ES

MACHINING CENTER


PULL SYSTEMS

PRODUCTION LINE

STA

T

GA

T

STA

T

SHUNT STANDSUB-ASSEMBLY, ASSEMBLY MANUFACTURING

14




MACHINING CENTER


BUFFER-JIT STORES

TIC

LIN

ES

TE

LIN

E

TIC

LIN

ES

PULL SYSTEMS

MACHINING CENTER

PRODUCTION LINE

STA

T

GA

T

STA

T




MACHINING CENTER CELLULAR MANUFACTURING

MACHINING CENTER


BUFFER-JIT STORES

TIC

LIN

ES

TE

LIN

E

TIC

LIN

ES

THIS SAYS IT ALL!

PRODUCTION LINE

STA

T

GA

T

STA

T


15




MACHINING CENTER


BUFFER-JIT STORES

TIC

LIN

ES

TE

LIN

E

TIC

LIN

ES

PULL SYSTEMS

MACHINING CENTER

STATIC LINES

PRODUCTION LINE

STA

T

GA

T

STA

T





MACHINING CENTER


BUFFER-JIT STORES

TE

LIN

E

PULL SYSTEMS

MACHINING CENTER

TIC

LIN

ES

TIC

LIN

ES

PRODUCTION LINE

GA

T


STA

T

STA

T

16



MACHINING CENTER


BUFFER-JIT STORES

TE

LIN

E

PULL SYSTEMS

TIC

LIN

ES

TIC

LIN

ES

PRODUCTION LINE

GA

TSUB-ASSEMBLY, ASSEMBLY SHUNT STAND MANUFACTURE

STA

T

STA

T



MACHINING CENTER


BUFFER-JIT STORES

TE

LIN

E

PULL SYSTEMS

TIC

LIN

ES

TIC

LIN

ES

PRODUCTION LINE

GA

T

SUB-ASSEMBLY, ASSEMBLYSHUNT STAND (REWORK)

STA

T

STA

T

17


FLYING SQUADS PROTECT THE LINE AND RESTART THE LINE WHEN POSSIBLE


BUFFER-JIT STORES

TE

LIN

E

PULL SYSTEMS

FIXING LINE STOPPAGE:

FLYING SQUADS SPOTTED THROUGHOUT A PLANT , RESPOND LIKE PARA-MEDICS TO AN INCIDENT!

PRODUCTION LINE

GA

TSHUNT STAND

GROWTH MATRIXDIAL-A-CAR MOD-02C

vs

CONSTRUCTION IS A “STATIC CONSTRUCTION IS A “STATIC LINE”

IN MODULE 02-CI WILL DISCUSS “CONSTRUCTION”I WILL DISCUSS “CONSTRUCTION”

IN AN IDEALIZED FLOW TO DEMONSTRATE THE SIMILARITY TO

MANUFACTURING

18

SPECIAL ORDER MAT CATALOG ORDER MAT

PRE-CONSTRUCTION

BUFFER-JIT STORES

BUFFER-JIT STORES FABRICATION

GC GETS NTP

GC BIDS WORK

GC BUYS OUT THEIR 2ND & 3TH TIER SUBS

TE

WO

RK

ING

WO

RK

PULL SYSTEMS

”STATIC LINE” CONSTRUCTION IN THE FIELD

HAS N0T ADOPTED GATELINE,

CELLULAR OR

GC/CM “QUALITY UP”

SIT

BU

ILD

I

PUNCH LIST

ACCEPTANCE

STATIC LINEBID-AWARD

GCs, SUB-CONTRACTORS & CMs CONSTRUCTION

CELLULAR ORPRODUCTION LINE

CONCEPTS


PRE-CONSTRUCTION

BUFFER-JIT STORES


GC GETS NTP

GC BIDS WORK


TE

WO

RK

ING

WO

RK

PULL SYSTEMS


SIT

BU

ILD

I

PUNCH LIST

ACCEPTANCE



19


PRE-CONSTRUCTION

BUFFER-JIT STORES


GC GETS NTP

GC BIDS WORK


TE

WO

RK

ING

WO

RK

PULL SYSTEMS


SIT

BU

ILD

I

PUNCH LIST

ACCEPTANCE




PRE-CONSTRUCTION

BUFFER-JIT STORES


GC GETS NTP

GC BIDS WORK


TE

WO

RK

ING

WO

RK

PULL SYSTEMS


SIT

BU

ILD

I

PUNCH LIST

ACCEPTANCE



20


PRE-CONSTRUCTION

BUFFER-JIT STORES


JOB-SITE

GC GETS NTP

GC BIDS WORK


TE

WO

RK

ING

WO

RK

PULL SYSTEMS


SIT

BU

ILD

I

PUNCH LIST

ACCEPTANCE




PRE-CONSTRUCTION

BUFFER-JIT STORES


JOB-SITE

GC GETS NTP

GC BIDS WORK


TE

WO

RK

DIN

G W

OR

K

PULL SYSTEMS


SIT

BU

ILD

PUNCH LIST

ACCEPTANCE



21


PRE-CONSTRUCTION

BUFFER-JIT STORES


JOB-SITE

GC GETS NTP

GC BIDS WORK


PULL SYSTEMS

TE

WO

RK

DIN

G W

OR

K

GC/CM “QUALITY UP” PUNCH LIST

ACCEPTANCE



SIT

BU

ILD


PRE-CONSTRUCTION

BUFFER-JIT STORES


JOB-SITE

GC GETS NTP

GC BIDS WORK


PULL SYSTEMS

TE

WO

RK

DIN

G W

OR

K

GC/CM “QUALITY UP” PUNCH LIST

ACCEPTANCE



SIT

BU

ILD

22

The Evolution ofThe Evolution ofLEAN / SIX SIGMALEAN / SIX SIGMA

MOD-03


WHAT IS LEAN SIX SIGMA?

LEAN REMOVES WASTE, FROM ABOVE AND BELOW THE WATERLINE

SIX-SIGMA TOMEASURE WITH

SIX-SIGMA THE PROCESSREMOVES “VARIATION”IN THE PROCESS

23

HOW IS VARIATIONCLASSIFIED

COMMON CAUSE- ISUNASSIGNABLE

SPECIAL CAUSE -ISASSIGNABLEUNASSIGNABLE

NORTH ROOF

RUN CHART

SOUTH ROOF

VARIATION IN NAIL GUN

The Toyota Way is a set of principles and behaviors that

MOD-04

underlie the Toyota Motor Corporation's managerial approachand production system.

Toyota first summed up its philosophy, values and manufacturing ideals in 2001, calling it "The Toyota Way 2001". It consists of principles in y y p ptwo key areas: continuous improvement, and respect for people.

24

Guiding Principles at ToyotaHonor the language and spirit of the law of every nation and undertake open and fair business activities to be a good corporate citizen of the world.

Respect the culture and customs of every nation and contribute to economic and social development through corporate activities in their respective communities.

Dedicate our business to providing clean and safe products and to enhancing the quality of life everywhere through all of our activities.

Create and develop advanced technologies and provide outstanding products and services that fulfill the needs of customers worldwide.

Foster a corporate culture that enhances both individual creativity and the value of teamwork, while honoring mutual trust and respect between labor and management.Pursue growth through harmony with the global community via innovative managementmanagement.

Work with business partners in research and manufacture to achieve stable, long-term growth and mutual benefits, while keeping ourselves open to new partnerships.

Established in 1992, revised in 1997. (Translation from original Japanese)

The Toyota Way is a set of principles and behaviors that underlie the Toyota Motor Corporation's managerial approachand production system.

Toyota first summed up its philosophy, values and manufacturing ideals in 2001, calling it "The Toyota Way 2001". It consists of principles in two key areas: continuous improvement, and respect for people.

MOD-04

14 PRINCIPLES OF14 PRINCIPLES OFTHE TOYOTA WAY THE TOYOTA WAY


25

14 PRINCIPLES OF THE TOYOTA WAY14 PRINCIPLES OF THE TOYOTA WAY

Principle 1. Base your management decisions on a long-term philosophy, even at the expense of short-term financial goals.

Long-term philosophy

Right process will produce right results

Principle 2. Create continuous process flow to bring problems to the surface.·Principle 3. Use pull systems to avoid overproduction.

Principle 4. Level out the workload (heijunka).

Principle 5. Build a culture of stopping to fix problems, to get quality right the first time.Principle 6. Standardized tasks are the foundation for continuous improvement and employee empowerment.

(Work like the tortoise, not the hare.)

DEPLOYED BY LCI

improvement and employee empowerment.Principle 7. Use visual control so no problems are hidden.

Principle 8. Use only reliable, thoroughly tested technology that serves your people and processes.


14 PRINCIPLES OF THE TOYOTA WAY14 PRINCIPLES OF THE TOYOTA WAY

Principle 9. Grow leaders who thoroughly understand the work, live the philosophy, and teach it to others.

Principle 10. Develop exceptional people and teams who follow your companys philosophy

Value to organization by developing people

companys philosophy.

Principle 11. Respect your extended network of partners and suppliers by challenging them and helping them improve.

Principle 12. Go and see for yourself to thoroughly understand the situation (genchi genbutsu).

Principle 13. Make decisions slowly by consensus, thoroughly considering all

Solving root problems drives organizational learning

IN PROCESS BY LCI

Principle 13. Make decisions slowly by consensus, thoroughly considering all options; implement decisions rapidly (nemawashi).

Principle 14. Become a learning organization through relentless reflection (hansei) and continuous improvement (kaizen).


26

GROWTH MATRIXTOYOTATOYOTA--PRINCIPLE #11PRINCIPLE #11PARTNERS & SUPPLIERSPARTNERS & SUPPLIERS

MOD-04A


















developing people

#12 #13 & #14

#2,#3, #4,#5 , #6,#7 & #8Right Process


Principle 11. Respect your extended network of partners HERE IS HOW

POINT “B”

#12,#13 & #14 Solving root

problems

#11, Partners & Suppliers

and suppliers by challenging them and helping them improve.

IT WAS DONE!

POINT “C”

27

TIER-I (OWNER)

IPDIPDIPD--BOTH STYLESBOTH STYLES

BOEING COMPANYSYSTEMS INTEGRATOR

TIER-I

TIER-II SUPPLIERS

SYSTEMS INTEGRATOR (IPD) TIER-II

TIER-III (GC) TIER-III (A&E)TIER-III (CM)

TIER-II (GE ENGINE)

DESIGN AGENT

DESIGN AGENT

TIER-IV(SUB-CONTRACTOR)

TIER-III (HONEYWELL)

APU

DESIGN AGENT

DO YOU A&E / GC’sDO YOU A&E / GC’s“WALK YOUR TALK”?“WALK YOUR TALK”?

AS OWNERS FLOW DOWN IPD, D&B & PPT TO A&E / GC

WILL A&E & GC FLOW DOWN IPD D&B, PPP TYPE CONTRACTS TO THEIR SUB-CONTRACTORS?

28

GROWTH MATRIXPOINT & INDUSTRY COUNTERPOINT

MOD-05


POINT POINT

•(CQI) PROCESSES ARE CURRENTLY BEING PUSHED “UPHILL ”BY INDUSTRY TO THE

POINT & INDUSTRY COUNTERPOINT POINT & INDUSTRY COUNTERPOINT

INDUSTRY TO THE OWNER.

•INDUSTRY NEEDS TO GET ON WITH THEIR OWN INTERNAL (CQI)

INDUSTRY COUNTERPOINT, INDUSTRY COUNTERPOINT, YOU CAN HAVE 2 OF THE 3 NO YOU CAN HAVE 2 OF THE 3 NO

MORE NO LESS MORE NO LESS

29

POINT POINT INDUSTRY COUNTERPOINTINDUSTRY COUNTERPOINT

••CONTINUOUS QUALITY CONTINUOUS QUALITY IMPROVEMENTS (CQI) LIKE IMPROVEMENTS (CQI) LIKE ISOISO--9001 WILL NOT 9001 WILL NOT BUBBLE UP FROM THE BUBBLE UP FROM THE BOTTOM BOTTOM

POINT & INDUSTRY COUNTERPOINT POINT & INDUSTRY COUNTERPOINT

BOTTOM BOTTOM

••THE CONSTRUCTION THE CONSTRUCTION COMPANIES COMPANIES NEED TO BE NEED TO BE CONVINCED THAT (CQI) IS CONVINCED THAT (CQI) IS A CUSTOMER A CUSTOMER DEMANDDEMAND

••AND THAT AND THAT IT WILL IT WILL IMPROVE THEIR BOTTOM IMPROVE THEIR BOTTOM LINE.LINE.

•MANY A&E, CM’s AND CG’s IN THE MIDDLE-WEST HAVE ISO-9001 CERTIFICATION, FORD QI CERTIFICATIN, LETS NOT BE OBVIOUS BY OUR ABSENCE, SHOULD CUSTOMERS DEMAND DEMONSTRATED CQI

SW

MW

MOD-6What Others are doing:What Others are doing:

The S.M.E., LEAN Manufacturing The S.M.E., LEAN Manufacturing Certificate Program Certificate Program

121 bodies of knowledge121 bodies of knowledge

30

THE THE LEAN ALLIANCE LEAN ALLIANCE

•CONSIDER USING THE S.M.E. ALLIANCE CRITERIA AS A “PICK LIST”, AND LET THE “VOICE OF YOUR CUSTOMER” “VOICE OF YOUR CUSTOMER” (VOC) & THE “VITAL FEW” SELECT THE REQUIREMENTS / CRITERIA

The Society of Manufacturing Engineers (SME), is the world’s leading professional society supporting manufacturing education. (SME0 influences more than half a million manufacturing engineers and executives annually. The Society has members in 70 countries and is supported by a network of hundreds of chapters worldwide. www.sme.org

The Association for Manufacturing Excellence (AME), founded in 1985, is the premier organization for the exchange of knowledge in enterprise excellence. (AME) members come together to explore Lean thinking and other

THE LEAN ALLIANCE IN MANUFACTURING IS BIG! THE LEAN ALLIANCE IN MANUFACTURING IS BIG!

enterprise improvement methods, exchange best practices, and network in order to advance their careers and improve the performance of their organizations. (AME) sponsors the annual International Lean Conference and publishes the award winning Target magazine. www.ame.org

The Shingo Prize, was established in 1988 to promote awareness of lean concepts and to recognize companies that achieve world-class operational excellence status around the globe. The Shingo Prize philosophy is that world-class businessperformance is achieved through a deep understanding and integration of lean principles, lean systems of management, and the wise application of lean tools and techniques to create a sustainable culture of continuous improvement.www.shingoprize.org

American Society for Quality (ASQ) , has been the world’s leading authority on quality for more than 60 years. With more than 85,000 individual and organizational members, the professional association advances learning, quality improvement and knowledge exchange to improve business results and to create better workplaces and communities worldwide. As a champion of the quality movement, ASQ - offers technologies, concepts, tools and training to quality professionals, quality practitioners and everyday consumers. www.asq.org

31

•CONSIDER USING THE SME ALLIANCE CRITERIA AS A “PICK LIST”, AND LET THE “VOICE OF YOUR CUSTOMER” (VOC) SELECT THE REQUIREMENTS / CRITERIA

MOD-6A

MODULE 1-Cultural Enablers1.1. Principles of Cultural Enablers1.2. Processes for Cultural Enablers1.3. Cultural Enabler Techniques and Practices

BRONZE SILVER GOLD

15% 20% 25%

WBS LVL-V

20

WEIGHTED (%) MODULE Lean Certification 121 Body of Knowledge

MODULE 2-Continuous Process Improvement2.1. Principles of Continuous Process Improvement

2.3. Continuous Process Improvement Technique & Practice

MODULE 3-Consistent Lean Enterprise Culture3.1. Principles of Consistent Lean Enterprise Culture3.2. Processes for Developing Consistent Lean Enterprise Culture3 3 Consistent Enterprise Culture Techniques & Practices

60%

10%

30%

20%

15%

30%

60

17

2.2. Continuous Process Improvement Systems

Copyright © 2008 Society of Manufacturing Engineers

3.3. Consistent Enterprise Culture Techniques & Practices

MODULE 4-Business Results4.1.Principles of Business4.2 Measurement Systems4.3.Key Lean related measures

15% 30% 30%

100% 100% 100%

24

121 BOK

SIX-SIGMA AS A MEASURE IS A BUSINESS METRIC!

32

WHAT DOES A SMEWHAT DOES A SME--LEAN BRONZE CANDIDATE NEED TO KNOW?LEAN BRONZE CANDIDATE NEED TO KNOW?L1L1--Factory, Office and ServiceFactory, Office and ServiceL2L2--Team FacilitationTeam FacilitationL3L3--Project ManagementProject ManagementL4L4--Appropriate Measurement of ResultsAppropriate Measurement of ResultsL5L5--Activities where the work happensActivities where the work happensL6L6--Cause and Corrective ActionsCause and Corrective ActionsL7L7--Cellular Layout/ConceptsCellular Layout/Concepts

http://en.wikipedia.org/wiki/Main_Page (LEAN DESCRIPTION)

L7L7--Cellular Layout/ConceptsCellular Layout/ConceptsL8L8--FlowFlowL9L9--JidokaJidokaL10L10--Mistake ProofingMistake ProofingL11L11--Problem solvingProblem solvingL12L12--Pull/KanbanPull/KanbanL13L13--SMED SMED L14L14--Standard WorkStandard WorkL15L15--Tactical results measurementTactical results measurementL16L16 Takt time/customer demandTakt time/customer demand

24 bodies of Knowledge

(POKA YOKE)

L12-Pull/Kanban

L16L16--Takt time/customer demandTakt time/customer demandL17L17--Total Productive Maintenance (TPM)Total Productive Maintenance (TPM)L18L18--ValueValueL19L19--5S5SL20L20--Visual ManagementVisual ManagementL21L21--Waste Waste L22L22--Gap analysisGap analysisL23L23--Team dynamicsTeam dynamicsL24L24--Planning methods/control methods)Planning methods/control methods)

Copyright © 2009 Society of Manufacturing EngineersCopyright © 2009 Society of Manufacturing Engineers

DENOTES SME BODIES OF KNOWLEDGE (BOK)REFERENCED IN LCI LITERATURE & WIKIPEDIA

WHAT DOES A SMEWHAT DOES A SME--LEAN SILVER CANDIDATE NEED TO KNOW?LEAN SILVER CANDIDATE NEED TO KNOW?

S1S1--Aligning support activities Aligning support activities S2S2--Analyzing and understanding organizational dynamicsAnalyzing and understanding organizational dynamicsS3S3--Applying lean tools at a tactical level and integrating the tools into a value stream.Applying lean tools at a tactical level and integrating the tools into a value stream.S4S4--Awareness of external assessment vehiclesAwareness of external assessment vehiclesS5S5--Benchmarking Benchmarking S6S6--Cell development, implementation and integrationCell development, implementation and integrationS7S7 Creating basic pull relationships for beginning and ending of the value streamCreating basic pull relationships for beginning and ending of the value stream

http://en.wikipedia.org/wiki/Main_Page

S7S7--Creating basic pull relationships for beginning and ending of the value streamCreating basic pull relationships for beginning and ending of the value streamS8S8--Creating Lean financial models for their value streamCreating Lean financial models for their value streamS9S9--Creating, managing and tracking improvement results within a value streamCreating, managing and tracking improvement results within a value streamS10S10--Effective communicationEffective communicationS11S11--Employee/supplier/customer involvement and empowermentEmployee/supplier/customer involvement and empowermentS12S12--Environment/Sustainability within the value streamEnvironment/Sustainability within the value streamS13S13--Establishing information flowsEstablishing information flowsS14S14--Evaluating human capabilities, identifying skill gaps and developing multiEvaluating human capabilities, identifying skill gaps and developing multi––skilled people skilled people

with basic understanding of Leanwith basic understanding of LeanS15S15--Influencing the organization to align with and support the value streamInfluencing the organization to align with and support the value streamS16S16 L i Ad i i t ti /T ti lL i Ad i i t ti /T ti l


S16S16--Lean in Administration/Transactional Lean in Administration/Transactional S17S17--LevelingLevelingS18S18--Managing for daily improvementManaging for daily improvementS19S19--Mentoring others on the lean journeyMentoring others on the lean journeyS20S20--Planning lean workshops and eventsPlanning lean workshops and eventsS21S21--Point of use: material and information Point of use: material and information S22S22--Selecting, organizing and leading multiple crossSelecting, organizing and leading multiple cross--functional teamsfunctional teamsS23S23--Value stream mapping and analysisValue stream mapping and analysisS24S24--Value stream visualsValue stream visuals Copyright © 2009 Society of Manufacturing EngineersCopyright © 2009 Society of Manufacturing Engineers

DENOTES SME BODIES OF KNOWLEDGE (BOK) REFERENCED IN LCI LITERATURE & WIKIPEDIA

33

G1G1--applying lean principles and tools to drive improvements.applying lean principles and tools to drive improvements.G2G2--showing measurable, positive results for an enterprise orchestrating the transformation showing measurable, positive results for an enterprise orchestrating the transformation

of multiple and extended value streams.of multiple and extended value streams.G3G3--defining and leading enterprise strategic transformation.defining and leading enterprise strategic transformation.G4G4--3P (Production Process Preparation)3P (Production Process Preparation)G5G5--Advanced lean financial modelsAdvanced lean financial modelsG6G6--Capital structureCapital structure

WHAT DOES A SMEWHAT DOES A SME--LEAN GOLD CANDIDATE LEAN GOLD CANDIDATE NEED TO KNOW?NEED TO KNOW?

(A-5S)

TODAYS G7G7--Knowledge transferKnowledge transferG8G8--Developing a learning organizationDeveloping a learning organizationG9G9--Organizational design & developmentOrganizational design & developmentG10G10--Enterprise value stream mapping & analysisEnterprise value stream mapping & analysisG11G11--Human resource planningHuman resource planningG12G12--Integration of other methodologies including 6Integration of other methodologies including 6--sigma, TOC, TQM, etc.sigma, TOC, TQM, etc.G13G13--Lean supply chain development Lean supply chain development G14G14--Market strategy Market strategy G15G15--Mentoring and coachingMentoring and coachingG16G16--Organization training strategy and deliveryOrganization training strategy and deliveryG17G17--Product development/project value stream mappingProduct development/project value stream mapping


TODAYS PRESENTATION

G17G17 Product development/project value stream mappingProduct development/project value stream mappingG18G18--Rewards, Recognition and EmpowermentRewards, Recognition and EmpowermentG19G19--Right sized operation, equipment and facility capacity planningRight sized operation, equipment and facility capacity planningG20G20--Strategy deploymentStrategy deploymentG21G21--Value stream organizational alignment Value stream organizational alignment G22G22--Effective communication and planningEffective communication and planningG23G23--Risk managementRisk managementG24G24--Social responsibilitySocial responsibilityG25G25--Environmental/sustainabilityEnvironmental/sustainabilityG26G26--Respect for the individual and humanityRespect for the individual and humanity Copyright © 2009 Society of Manufacturing EngineersCopyright © 2009 Society of Manufacturing Engineers

http://en.wikipedia.org/wiki/Main_Page

DENOTES SME BODIES OF KNOWLEDGE (BOK) REFERENCED IN LCI LITERATURE & WIKIPEDIA

MOD-7Quality Certificates that Quality Certificates that

denote “LEAN” to customersdenote “LEAN” to customers


34

Bulls Eye Charts, the Bulls Eye Charts, the Best tool to use to Best tool to use to evaluate how to evaluate how to deploy a Quality deploy a Quality Process/ManualProcess/Manual

DIFFICULTY and IMPORTANCE, there is no template for determining DIFFICULTY and IMPORTANCE.

Its for a Company to Its for a Company to determine based on the Voice of their Customer (internal & external)!

Their culture!

Principle 7. Use visual control so no problems are hidden.

lets not forget the benefit to the bottom line !

Module #1-Cultural Enablers

SME 12 Principles

SME 12 Principles

SME 12 Principles

SME 12 Principles

SME 12 Principles

SME 12 Principles

SME 12 Principles

SME 12 Principles

SME 12 Principles

SME 12 Principles

SME 12 Principles

SME 12 Principles

POINT “A”

BULLS EYE CHARTS

Module #3-Consistent Lean Enterprise Culture

Module #4-Business Results

Module #2-Continuous Process Improvement

HOW IN THE WORLD DID I GET FROM SME’s 12 PRINCIPLES

Results

Principle #4.1,4.2,4.3

POINT “B”

(POINT “A”) TO POINT “B”?

35

Quality ToolsQuality ToolsBULLS EYE CHARTSBULLS EYE CHARTS

MOD-7A


How can the “BULLS-EYE” Charts help to know what Certificate to go after?

• Manufacturing is very Manufacturing is very “VISUAL” industry

• (Bulls Eye charting, Visual Control Boards etc.)

• Construction should follow suite. EASY TO

GET HERE,

TOUGH TO GET HERE

EXPENSIVE TO GET HERE

THE BEST PLACE TO BE!HERE,

BUT NO GAIN!• MOST IMPORTANT &

LEAST DIFFICULT TO DO IS THE PLACE TO BE!

BE!

36

FOCUS ON THE “VITAL FEW”

FINDING THE “LOW HANGING FRUIT” USING FINDING THE “LOW HANGING FRUIT” USING “PARETO ANALYSIS” “PARETO ANALYSIS” TO GET THERE!TO GET THERE!

FEW

•The Pareto effect or Pareto’s law: a small proportion of causes produce a large proportion of results.

•It is this phrase that is most commonly used in

DEPLOYMENT STAGE

most commonly used in talking about the Pareto effect – ‘the vital few and the trivial many”


USING DIFFICULTY / IMPORTANCE TO FIND USING DIFFICULTY / IMPORTANCE TO FIND “LOW HANGING FRUIT”,“LOW HANGING FRUIT”,GETS THERE GETS THERE

QUICKLYQUICKLY

EVERY COMPANY HAS ENABLERS & CONSTRAINTS

A BENCHMARK & QFD SHOULD BE DONE TOFIND THE “LOW HANGING FRUIT”

6 POINTS9 POINTS

3 POINTS

1 POINT


37

MOD-7BQUALITY FUNCTION DELOYMENT

(QFD)

(THE HOUSE OF QUALITY)


SME 12 Principles

SME 12 Principles

SME 12 Principles

SME 12 Principles

SME 12 Principles

SME 12 Principles

SME 12 Principles

SME 12 Principles

SME 12 Principles

SME 12 Principles

SME 12 Principles

SME 12 Principles

POINT “A”

QFDBULLS EYE CHARTS





Results

Principle #4.1,4.2,4.3

POINT “B”


38

ROOF GABLE

QFD & THE HOUSE OF QUALITY

RELATIONSHIP LEGEND=STRONG

=MEDIUMGIVES THE NAME“HOUSE OF QUALITY” (6th)

VOICEOFTHE

CUSTOMER(3rd)

“WHAT”CUSTOMER

REQUIREMENTS(1 t)

“HOW”DESIGN

REQUIREMENTS”(2nd)

=MEDIUM

=WEAK

VOICE OF COMPETITION (5th)

(1st)

TARGET VALUES BY FSC (4TH)


MOD-7CBENCHMARKING

39


SME 12 Principles

SME 12 Principles

SME 12 Principles

SME 12 Principles

SME 12 Principles

SME 12 Principles

SME 12 Principles

SME 12 Principles

SME 12 Principles

SME 12 Principles

SME 12 Principles

SME 12 Principles

POINT “A”

QFD (5 TIMES)BULLS EYE CHARTS





Results

Principle #4.1,4.2,4.3 POINT “B” BENCHMARKING


VOICE OF THE CUSTOMER

BENCHMARKINGWHAT IS IT?

INTERNALDATA

EXTERNALDATA

DATA ANALYSIS

CRITICAL SUCCESS FACTORS

ENABLERS

What To Benchmark

How Do We Do It?

Who Is Best?

How Do They Do It?

COMPETITION

Best? They Do It?

40

• BENCHMARKING DEFINED BY DAVID KEARNS –XEROX:• COMPETITIVE

BENCHMARKING IS THE CONTINUOUS PROCESS OF MEASURING OUR

BENCHMARKING DEFINED

MEASURING OUR PRODUCTS, SERVICES AND PRACTICES AGAINST OUR TOUGHEST COMPETITORS OR THOSE COMPANIES RECOGNIZED AS THE LEADERS:

• IN 1993 MIKE WAS HIRED TO BENCHMARK –NEW PLANT BENCHMARK NEW PLANT CONSTRUCTION BEST PRACTICES.

• BENCHMARKING CONCLUSIONS WERE PEER REVIEWED AND DEPLOYED

Finding the Quality Membership Finding the Quality Membership or Certificate that suites “YOU”or Certificate that suites “YOU”

MOD-7D

41

Finding the Finding the Quality Quality

Membership or Membership or PMIPMI COMPANY/INDIVIDUAL, HOW TO MANUAL

LCILCI COMPANY/INDIVIDUAL MEMBERSHIP

TBD

TBD

Membership or Membership or Certificate Certificate that suites that suites

“YOU”“YOU”AGCAGC

SMESME

INDIVIDUAL CERTIFICATE

INDIVIDUAL/CORPORATE & EDUCATOR CERTIFICATE

4 MONTHS

2 YEARS

IS ISO-9001, LIKE “ PRECISION VS. ACCURACY “

ISOISO--90019001

FORD FORD Q1Q1

COMPANY CERTIFICATECOMPANY CERTIFICATE

COMPANY CERTIFICATECOMPANY CERTIFICATE

1 YEAR1 YEAR

2 YEARS2 YEARS

ISO-9001 IS THE HIGH WATER MARK OF QUALITY STANDARDS

IT WILL BE DISCUSSED LATER IN THIS PRESENTATION?

The Principles of Quality Management and ISO 9001 ISO 9001 is based on EIGHT principles of quality management, and these in effect underpin the standard and help to define its purpose and direction. They are:

Process approach Some businesses are seemingly more process oriented than others (e.g. car manufacturing), however it is possible to see virtually all business activities and resources in terms of process. Managing in this way will enable greater efficiencies through a clearer view of what is

Mutually beneficial supplier relationships Traditionally, smaller firms supplied parts or materials to larger manufacturers to meet a specified order. More however can be derived from this kind of relationship by seeing it instead as an interdependent partnership that provides mutual benefits

ISOISO--90019001

COMPANY CERTIFICATECOMPANY CERTIFICATE 2 YEARS2 YEARS

INTERNATIONAL ORGANIZATION FOR STANDARIZATION (ISO) “9001”

its purpose and direction. They are:

Customer focus For any forward thinking business concerned about quality improvement, customers and their requirements should dictate much of their strategy. Without customer satisfaction the the business will ultimately fail, or at best tread water. Organisations should understand their customers' needs and strive to meet or even exceed them.

Leadership The strategy, direction and ultimate success of any business is to a great degree dependent upon its leadership, along with the environment and even the

happening.

System approach to management Management should view all business activities and interrelated processes as an integrated system. This will then encourage greater efficiency and effectiveness throughout the organisation.

Continual improvement This should be a permanent objective of any organisation that really wishes to succeed and excel within its marketplace. Whatever the organisation does to improve quality and performance should

p p pto both sides.

along with the environment and even the culture that they encourage within the organisation. A clearly communicated vision and constancy of purpose on the part of management is key to business improvement.

Involvement of people It is an organisation's people that will actually provide the front line customer service and follow the vision of the leadership, but they need to be encouraged and involved.

improve quality and performance should be subject to a continuing cycle of review, and this should result in the further raising of targets and goals to new levels. This is simply necessary to keep ahead of the competition.

Factual approach to decision making Any key decisions made about direction or strategy should be based on sound data that has been gathered via predetermined business measures.

42

BREAKBREAK



PART TWOPART TWO--(APPLICATION(APPLICATION

43

MOD-08HOW CAN SIX SIGMA HOW CAN SIX SIGMA

(THE METRIC PORTION) BE USED (THE METRIC PORTION) BE USED AND ADAPTED TO CONSTRUCTION!AND ADAPTED TO CONSTRUCTION!


SIX-SIGMA IS 3.4 DEFECTS PER MILLION OPPORTUNITIES

AVERAGE COMPANY 3.6 TO 4.4 SIGMA

OPPORTUNITIES

SAID ANOTHER WAY: $3.40 OF E/O PER MILLION DOLLARS OF CONSTRUCTION

NOT A PART OF THIS PRESENTATION

WHAT IS SIX SIGMA?

USE SIX-SIGMA TO MEASUREPERFORMANCE

SIX-SIGMA REMOVESVARIATIONIN THE PROCESS

44

SIX SIGMASIX SIGMA--AS A METRICAS A METRIC

USE ONE DOLLAR ($) AS ONE DEFECT PER MILLION OPPORTUNITIES

$1 00 1 D P M O$1.00=1- D.P.M.O.

MOD-08AHOW SIX SIGMAHOW SIX SIGMA(THE METRIC PORTION)(THE METRIC PORTION)WITH A 3.0 SIGMA SHIFT CAN BE ADAPTED WITH A 3.0 SIGMA SHIFT CAN BE ADAPTED

TO CONSTRUCTION TO CONSTRUCTION


45

SIXSIX--SIGMA TARGET SIGMA TARGET AA--EE--PP--C C

MOTOROLA INVENTED_1.5 SIGMA SHIFT

3.0 Sigma Shift in Process Mean3.0

CONSTRUCTION SHOULD INVENT_3.0 SIGMA SHIFT

Target Sigma for Design services!

Target 4.9 sigma


3.0 Sigma Shift in Process Mean

CONSTRUCTION SHOULD INVENT_3.0 SIGMA SHIFT

46

Target Sigma for Design services!

Target 4.9 sigma


Target Sigma for Construction

Target 4.5 sigma

MOD-09

COSTS CAN GROW 4 TO COSTS CAN GROW 4 TO 10 TIMES WHEN DEMANDING PRECISION VS ACCURACY

The COST of The COST of Precision vs Precision vs

AccuracyAccuracy

47

--

BEFORE USING BEFORE USING SIGMA TO MEASURE SIGMA TO MEASURE PERFORMANCE!PERFORMANCE!

AISC Specification: Code of Standard AISC Specification: Code of Standard Practice for Steel Buildings and BridgesPractice for Steel Buildings and Bridges

LOOK AT WHAT THE LOOK AT WHAT THE CONSTRUCTION CONSTRUCTION INDUSTRY INDUSTRY “MARKET” WILL “MARKET” WILL ACCEPTACCEPT

Column Plumb Criteria

WE SHOULD WE SHOULD CONSIDER A 3.0 CONSIDER A 3.0 SIGMA SHIFT TO SIGMA SHIFT TO ADJUST FOR ADJUST FOR COMMON AND COMMON AND SPECIAL CAUSE SPECIAL CAUSE VARIATION) VARIATION)

2” INCHES<>0” INCH 20 STORY BLDG

Aircraft Aircraft “Precision” “Precision” a 747 airlinera 747 airliner

Construction Construction “Accuracy”“Accuracy”20 story bldg column20 story bldg column

747 Standing on end (20 stories)

20 story building

2,500 + Built in

1,500 Sold

$250 + million each

Built in HONG KONG

$120 + million each

GROUND

48

ManufacturingManufacturing“Precision”, “Precision”, a car doora car door

DRIFT PIN ALIGNMENT

Construction Construction “Accuracy ““Accuracy “A Girder A Girder –– Beam connectionBeam connection

CAR DOOR

LASER ALIGNMENT 5-DRIFT PINS BEING USED TO ALIGN

BRIDGE GIRDER

IMAGINE USING A DRIFT PIN TO IMAGINE USING A DRIFT PIN TO ALIGN A CAR DOOR!ALIGN A CAR DOOR!

49

MOD-10TOYOTA PRINCIPLE #6TOYOTA PRINCIPLE #6

STANDARDIZED TASKS ARE STANDARDIZED TASKS ARE THE FOUNDATION OF CQITHE FOUNDATION OF CQITHE FOUNDATION OF CQITHE FOUNDATION OF CQI


GREEK HIEROGLYPHICS

HOW DO YOU READHOW DO YOU READSIX SIGMA SIX SIGMA & BULLS EYE CHARTS TOGETHER& BULLS EYE CHARTS TOGETHER

GREEK HIEROGLYPHICS

50

GREEK HIEROGLYPHICS

HOW DO YOU READHOW DO YOU READSIX SIGMA SIX SIGMA & BULLS EYE CHARTS TOGETHER& BULLS EYE CHARTS TOGETHER

TO BE EXPLAINED AFTER THE BREAK

GREEK HIEROGLYPHICS

CORRELATING P.S.& P.C. (ES) TO SUBSTANTIAL COMPLETION OF PROJECTS

51

MOD-10A

TOYOTA PRINCIPLE #6TOYOTA PRINCIPLE #6STANDARDIZED TASKS ARE THE STANDARDIZED TASKS ARE THE

FOUNDATION OF CQIFOUNDATION OF CQIREADING THE MANUFACTIRINGREADING THE MANUFACTIRING

(1.5 SIGMA SHIFT) (1.5 SIGMA SHIFT)

GREEK HIEROGLYPHICS

HOW DO YOU READHOW DO YOU READSIX SIGMA IN SIX SIGMA IN MANUFACTURINGMANUFACTURING

(WITH A 1.5 SIGMA SHIFT)(WITH A 1.5 SIGMA SHIFT)

0.98 SIGMA=700,000 DPMO

2.2 SIGMA=300,000 DPMO

1.5 SIGMA=500,000 DPMO

2.78 SIGMA=100,000 DPMO

GREEK HIEROGLYPHICS6.0 SIGMA=3.4 DPMO

2.34 SIGMA=200,000 DPMO

52

MOD-10BTOYOTA PRINCIPLE #6TOYOTA PRINCIPLE #6

STANDARDIZED TASKS ARE THE STANDARDIZED TASKS ARE THE FOUNDATION OF CQIFOUNDATION OF CQI

(WORK BREAKDOWN STRUCTURE )(WORK BREAKDOWN STRUCTURE )


LVL-IV

LVL III

PEELING THE ONION OF WORK BREAKDOWN STRUCTURE (WBS)

LVL-III

LVL-II

LVL-I

METRIC levels are like ONIONS LAYERS.Each layer is more detailedThe closer to core the more detailToo many levels and you will cry.

53

OUR “HOLY GRAIL”

HOW TO TRANSFER THE

MANUFACTURING CONCEPTS TO

CONSTRUCTION

3RD-FL

ROOF

CONSTRUCTION

1ST-FL

2nd-FLHOGGING MACHINES IN MANUFACTURING = (ROUGH-IN) IN CONSTRUCTION

FINISHING MACHINES = (FINISHES) IN CONSTRUCTION

BSM’T

GROWTH MATRIX

FS

FF

SS

•DON’T FORGET THE SCHEDULING UNIVERSE IS ONLY (FS-FF-SS-SF)•AND SOMEHOW WE ACCEPT, MAINTAIN 1,500 TO 12,000 ACTIVTY SCHEDULES, WHERE 70% OF THE ACTIVITIES ARE THE “TRIVIAL MANY”

SCHEDULING UNIVERSE

SF

LVL-IV

LVL-III

MANY”•ITS IN YOUR POWER TO OBJECT & STOP THIS!

•THE “TRIVIAL MANY” :•ARE SUCH THINGS AS USING THE 33 CSI

LVL-II

LVL-I

•ARE SUCH THINGS AS USING THE 33 CSI DIVISIONS AND THE SUB-DIVISIONS AND MAKING A TEMPLATE LIKE “BUY-OUT-PREPARE SUBMITTAL-SUBMITTAL-OWNER REVIEW-REJECT/RESUBMIT-APPROVE-PROCURE-FABRICATE-DELIVER & INSTALL”, THESE 10 X 33 X CAN BETTER BE DONE IN XLS, DON’T FLOOD THE P3/P6 SCHEDULES WITH THINGS BETTER MANAGED IN XLS

54

SAMPLESAMPLE--BASELINE BASELINE SCHEDULE COUNTSCHEDULE COUNTWITH WITH IMPORTANT IMPORTANT ELEMENTS DEFINEDELEMENTS DEFINED

THE 2,000 ACTIVITIES EXCLUDES THE “TRIVIAL MANY” TYPE ACTIVITIES LIKE (BUYOUT, SUBMIT, APPV,

2,000

(BUYOUT, SUBMIT, APPV, PROCURE, DELIVER & INSTALL)

OVERVIEWOVERVIEW--WHAT THE WHAT THE CONSTRUCTION INDUSTRY HAS CONSTRUCTION INDUSTRY HAS DONE TO CONVERT TO A T.P.S.DONE TO CONVERT TO A T.P.S.

MOD-10C


55

PLAN DO CHECK ACT

DEMING (PDCA) & PROJECT DEMING (PDCA) & PROJECT DELIVERY WORK DELIVERY WORK FLOW FLOW ARE THE SAME!ARE THE SAME!

Contractors Value Stream

MOD-11

A Six Sigma Construction Case A Six Sigma Construction Case StudyStudy

A D i & B ild (D&B) T t C llA D i & B ild (D&B) T t C llA Design & Build (D&B) Test CellA Design & Build (D&B) Test Cell

56

SIX SIGMA SIX SIGMA METRICS MUST METRICS MUST BE “TAILORED” BE “TAILORED”

FORFORCONSTRUCTIONCONSTRUCTION

A CASE STUDYA CASE STUDY

TODAY, LEAN & SIX-SIGMA areInstitutionalized in ManufacturingSo not much is said !

1991 Data 1991 Data -- Design & BuildDesign & Build(D&B) Test Cell(D&B) Test Cell

TEST CELLSTEST CELLS•• DESIGN & BUILD COST $ 9.9 MILLIONDESIGN & BUILD COST $ 9.9 MILLION•• TEST & ENERGIES EQUIPMENT $20.0 MILLIONTEST & ENERGIES EQUIPMENT $20.0 MILLION•• SCHEDULESCHEDULE--12 MONTHS CRITERIA & LONG LEAD 12 MONTHS CRITERIA & LONG LEAD

EQUIP, 24 MONTHS DESIGN & BUILDEQUIP, 24 MONTHS DESIGN & BUILD

57

The 3 Candidate The 3 Candidate Design Design Measurements!Measurements!

•• Measuring using the Construction Specifications:Measuring using the Construction Specifications:•• 250 words/pages 1332 pages=330,000 (Potential 250 words/pages 1332 pages=330,000 (Potential

DPMO)DPMO)•• Measuring using the Drawings:Measuring using the Drawings:

•• 1,200 symbols/valves, etc. X 80 drawings =96,0001,200 symbols/valves, etc. X 80 drawings =96,000•• 250 word/information, etc. X 80 drawings =20,000250 word/information, etc. X 80 drawings =20,000

•• Measuring using the Building Code:Measuring using the Building Code:•• Building Code=800 pagesBuilding Code=800 pagesBuilding Code 800 pagesBuilding Code 800 pages•• Electrical/Mechanical Code=1,200 pagesElectrical/Mechanical Code=1,200 pages•• Local Building Code=800 pagesLocal Building Code=800 pages•• Total 2,800 pages X 250 words=700,000Total 2,800 pages X 250 words=700,000

Calculating the Design & Calculating the Design & Build (D&B) Test Cell Six Sigma Build (D&B) Test Cell Six Sigma

DESIGNDESIGNA t l C t $1 360 000A t l C t $1 360 000

OPPORTUNITIES OPPORTUNITIES 9,910,0009,910,000 9,910,0009,910,000

1.5 SIGMA SHIFT

3.0 SIGMA SHIFT

Actual Cost $1,360,000Actual Cost $1,360,000Plan check errors $78,000Plan check errors $78,000Design errors $95,000Design errors $95,000

CONSTRUCTIONCONSTRUCTIONActual Cost $8 550 000Actual Cost $8 550 000

DEFECTSDEFECTS 270,000270,000

DPMODPMO 27,24527,245

DEFECTS (%)DEFECTS (%) 2.72%2.72%

YIELD (%)YIELD (%) 97. 28%97. 28%

2,7502,750

277277

0.03%0.03%

99.97%99.97%Actual Cost $8,550,000Actual Cost $8,550,000Constr errors. $97,000Constr errors. $97,000

A DPMO IS A PROJECT DOLLAR ($), A DEFECT IS EACH DOLLAR ($) OF A ERROR OR OMISSION

PROCESS PROCESS SIGMASIGMA

3.4233.423 4.9534.953

58

MOD-11A

A Six Sigma Construction Case A Six Sigma Construction Case StudyStudy

OTHER CRITERIA & ISSUES TO USE TO OTHER CRITERIA & ISSUES TO USE TO MEASURE PERFORMANCEMEASURE PERFORMANCE

WHERE DID THE TERM “PUNCH LIST” COME FROM:

The phrase takes its name from the historical process of “punching” a hole in the margin of the document, next to one of the items on the list.

This indicated that the work was completed for that particular construction task.

Two copies of the list were “punched” at the same time to provide an identical record for the architect and contractor

WE HAVE MADE A INSTITUTION FOR “DEFECTS” TO RESIDE IN!

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USING THE “PUNCH LIST” TO MEASURE THE PROJECT SIGMA!USING THE “PUNCH LIST” TO MEASURE THE PROJECT SIGMA!

•• DURING THE ACTUAL CONSTRUCTION DURING THE ACTUAL CONSTRUCTION DURATION DETERMINE SEVERITY OF DURATION DETERMINE SEVERITY OF EACH ITEM IN THE CURRENT EACH ITEM IN THE CURRENT “PUNCHLIST” /NC/D) OR WHATEVER ITS “PUNCHLIST” /NC/D) OR WHATEVER ITS CALLED BY YOUCALLED BY YOU

DURING CONSTRUCTIONDURING CONSTRUCTION

•• DETERMINE SEVERITY OF EACH ITEM IN DETERMINE SEVERITY OF EACH ITEM IN THE CURRENT “PUNCHLIST” / NC / D) OR THE CURRENT “PUNCHLIST” / NC / D) OR WHATEVER ITS CALLED BY YOU.WHATEVER ITS CALLED BY YOU.

•• USE 10USE 10--66--22--1 TO INDICATE SEVERITY , 1 TO INDICATE SEVERITY , USE THESE PLUG NUMBERS TO OBTAIN USE THESE PLUG NUMBERS TO OBTAIN

AT SUBSTANTIAL COMPLETIONAT SUBSTANTIAL COMPLETION

CALLED BY YOU.CALLED BY YOU.•• USE 10USE 10--66--22--1 TO INDICATE SEVERITY , 1 TO INDICATE SEVERITY ,

USE THESE PLUG NUMBERS TO OBTAIN USE THESE PLUG NUMBERS TO OBTAIN THE D.P.M.O :THE D.P.M.O :•• 10=$50,000.0010=$50,000.00•• 6=$30,000.006=$30,000.00•• 2=$10,000.002=$10,000.00•• 1=$1,000.001=$1,000.00

•• NOW EXTEND THE PRICE THE NOW EXTEND THE PRICE THE INDIVIDUAL D.P.M.O. OF EACH (X ) THE INDIVIDUAL D.P.M.O. OF EACH (X ) THE NUMBER OF PUNCH LIST ITEMS.NUMBER OF PUNCH LIST ITEMS.

•• THEN OBTAIN THE CURRENT PAY THEN OBTAIN THE CURRENT PAY APPLICATION AND FIND THE CURRENT APPLICATION AND FIND THE CURRENT

USE THESE PLUG NUMBERS TO OBTAIN USE THESE PLUG NUMBERS TO OBTAIN THE D.P.M.O :THE D.P.M.O :•• 10=$50,000.0010=$50,000.00•• 6=$30,000.006=$30,000.00•• 2=$10,000.002=$10,000.00•• 1=$1,000.001=$1,000.00

•• NOW EXTEND THE PRICE THE NOW EXTEND THE PRICE THE INDIVIDUAL D.P.M.O. OF EACH (X ) THE INDIVIDUAL D.P.M.O. OF EACH (X ) THE NUMBER OF PUNCH LIST ITEMS.NUMBER OF PUNCH LIST ITEMS.

•• THEN OBTAIN THE CURRENT PAY THEN OBTAIN THE CURRENT PAY APPLICATION AND FIND THE CURRENT APPLICATION AND FIND THE CURRENT STORED IN PLACE (MINUS GC/GR), THIS STORED IN PLACE (MINUS GC/GR), THIS BECOMES YOUR “OPPORTUNITY “BECOMES YOUR “OPPORTUNITY “APPLICATION AND FIND THE CURRENT APPLICATION AND FIND THE CURRENT

STORED IN PLACE (MINUS GC/GR), THIS STORED IN PLACE (MINUS GC/GR), THIS BECOMES YOUR “OPPORTUNITY “.BECOMES YOUR “OPPORTUNITY “.

•• NOW GO TO THE SIGMA CALCULATOR NOW GO TO THE SIGMA CALCULATOR ENTER THE DATA. ENTER THE DATA.

•• NOW READ YOUR SIGMA.NOW READ YOUR SIGMA.

BECOMES YOUR “OPPORTUNITY “.BECOMES YOUR “OPPORTUNITY “.•• NOW GO TO THE SIGMA CALCULATOR NOW GO TO THE SIGMA CALCULATOR

ENTER THE DATA. ENTER THE DATA. •• NOW READ YOUR SIGMANOW READ YOUR SIGMA

FREE SIGMAFREE SIGMACALCULATORS ABOUNDCALCULATORS ABOUND

1.5 SIGMA

3.0 SIGMA

OPPORTUNITIESOPPORTUNITIES 9,910,0009,910,000

DEFECTSDEFECTS *270,000*270,000

D.P.M.O.D.P.M.O. 27,24527,245

DEFECTSDEFECTS 2 722 72

9,910,0009,910,000

2,7502,750

277277

0 03%0 03%

SIGMA SHIFT

SIGMA SHIFT

DEFECTS DEFECTS (%)(%) 2.722.72

YIELD (%)YIELD (%) 97.2897.28

PROCESS PROCESS SIGMASIGMA 3.423.42

0.03%0.03%

99.97%99.97%

4.9534.953

60

MEANS & METHODS_ONE PIECE FLOW REMOVES (MUDA)

MOD-12

GREEK(CONSTRUCTION)

TERMS

HIEROGLYPHICS(QUALITY/MANUFACTURING)

TERMS

CONSTRUCTION IS A “STATIC LINE”!

“FLYING FORMS” ALSO CALLED “GANG FORMS” IS SMED

FLYING FORMS, SIMILAR IN MANUFACTURING TO SINGLE MINUTE

EXCHANGE OF DIES (SMED)

2.3.7. Countermeasure Activities•2.3.7.1. Mistake and Error Proofing (Poka Yoke)•2.3.7.2. Quick Changeover/Setup Reduction (SMED)

IS SMED


61

THINK PRE-FABRICATION

OUR INDUSTRY IS NOW STARTING TO SPOOL PIPE, STARTING TO SPOOL PIPE, ”CUBE/MODULARIZE” LOOSE COMPONENTS INTO ONE PIECE EQUIPMENT!

IMPROVE THE SCHEDULE;SKID MOUNT THE FIRE PUMP & PUMP HOUSE

FIRE PUMP MANUFACTURING, FIRE PUMP MANUFACTURING, WE TRUST, BUT WE VERIFY!WE TRUST, BUT WE VERIFY!

OW

NER

The Fire pump sub-system are fabricated in 5 cities in the USA

The Fire pump sub-system are final assembled & tested in Texas

CO

NTR

ACTO

RLY

NO FIREPUMPNO FIREPUMP--NO PERMIT NO PERMIT

FIR

E PU

MP

SUB

-ASS

EMB

LY

62

MOD-134 Quality Tools I use to Find 4 Quality Tools I use to Find

SolutionsSolutions(MACRO LEVEL PLANNING)(MACRO LEVEL PLANNING)(MACRO LEVEL PLANNING)(MACRO LEVEL PLANNING)

Principle 4. Level out the workload (heijunka). (Work like the tortoise, not the hare.)

Quality ToolsQuality ToolsPRIOR ATTEMPTS TO DEPLOY LEAN PRIOR ATTEMPTS TO DEPLOY LEAN

MOD-13A

PRIOR ATTEMPTS TO DEPLOY LEAN PRIOR ATTEMPTS TO DEPLOY LEAN CONSTRUCTION & SIXCONSTRUCTION & SIX--SIGMASIGMA

(THE PROCESS)(THE PROCESS)

JURAN SAIDJURAN SAIDJURAN SAID…..JURAN SAID…..•• “All quality improvement occurs on a project“All quality improvement occurs on a project--

byby--project basis and in no other way.”project basis and in no other way.”

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“A BRIDGE TO FAR”“A BRIDGE TO FAR”DEPLOYING LEAN CONSTRUCTION & SIXDEPLOYING LEAN CONSTRUCTION & SIX--SIGMA (THE PROCESS)SIGMA (THE PROCESS)

SELECT PARTNERS

Quality ToolsQuality ToolsISHIKAWA DIAGRAMSISHIKAWA DIAGRAMS(ALSO CALLED FISHBONE CHARTS)(ALSO CALLED FISHBONE CHARTS)

MOD-13B

( )( )

1. A CUSTOMER SURVEY OF PLANT ENGINEERING & MAINTENANCE SERVICES WAS PERFORMED!

2. THE DATA WAS REDUCED BY USING THE “FISH BONE” CHARTS

3. IF DONE AGAIN TODAY I’LL


BET THE RESPONSES WON’T BE MUCH DIFFERENT, WHAT DO YOU THINK?

64

1991 FISHBONE OF CUSTOMER SERVICE SURVEY

HOW CLOSE IS THIS SURVEY TO YOUR SITUATION?



NOTICE:NOTICE:THE CHARTS, ISSUES & POINTS THE CHARTS, ISSUES & POINTS OF VIEW PRESENTED ARE MINE OF VIEW PRESENTED ARE MINE ALONE ALONE

Plus/Delta

part one (processes) - lean construction institute · might adopt for your quality journey ! ......

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