© 2006 MHTC, Inc. Green Belt Certification Chapter 5 Lean Six Sigma for Government Certification...
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Transcript of © 2006 MHTC, Inc. Green Belt Certification Chapter 5 Lean Six Sigma for Government Certification...
© 2006 MHTC, Inc.© 2006 MHTC, Inc.
Green Belt Certification
Chapter 5
Lean Six Sigma for Government Certification Series
Introduction to Continuous Process Improvement (CPI)
DMAIC (CONTINUED)
DMAIC in CPIImprove
• Improve Stage Objectives– Develop Potential Solutions– Evaluate and develop optimal solutions– Create To-Be value stream maps– Pilot the solution– Confirm project goals and objectives will be met, build a
business case for change– Develop a full-scale implementation plan
• Purpose– To identify and validate the solutions that will add value
for the customer in a more cost effective and efficient process defined by the projects scope.
– To confirm benefits of process change.– To prepare to execute full-scale implementation.
DMAIC in CPIImprove
• Generate Potential Solutions– Refer to Root Causes from
Analyze– Lean Six Sigma Techniques– Idea Generation
• Brainstorming • Benchmarking
DMAIC in CPIImprove
• The Lean Manufacturing Philosophy– Muda = Waste:
• Anything that uses resources without providing value to the customer (DoD CPI Guidebook)
• Eliminate it– 7 Ways to Waste
• Poor Quality - Mistakes/Defects• Inventory• Over Production• Unnecessary Process Steps• Transportation/Moving• Waiting/Delays• Excessive Motion
DMAIC in CPIImprove
• Lean Concepts (George, Rowlands & Kastle, What is Lean Six Sigma?)
• Delight Customers– Quality, Speed and Cost (Value)– Voice of the Customer (VOC)
• Improve Processes• Work as a Team• Make Decisions Based on Data
DMAIC in CPIImprove
• Cellular Processing
IN
OUT
CELLULAR FLOW
DMAIC in CPIImprove
• Error Proofing (Poka Yoke)– Design parts that fit only one
way
– Warning devices that prevent rather than catch the error
• User-Friendly
• Simple to Install
• Don’t require close attention from employee
• Low-cost
• Provides instantaneous feedback, prevention or correction
DMAIC in CPIImprove
• Kanban (Card)
• A signal from a customer to a supplier within an organization’s internal operations and/or throughout the entire supply chain .
• Triggers the entire supply chain to respond to the customer demand.
• Work-order / AFTO 350 Tag
DMAIC in CPIImprove
• Automated Resource Planning – Material Resource Planning
(MRP)
– Manufacturing Resources Planning (MRP II)
– Maintenance, Repair and Overhaul (MRO)
– Enterprise Resource Planning (ERP)
• Integrated planning for physical, material and human resources
• May include external suppliers
DMAIC in CPIImprove
• Mixed Model Scheduling– Avoids separate
lines– Batches– Match Customer
Orders– Requires rapid
changeover
DMAIC in CPIImprove
• Pull – Production or Maintenance on Demand
– Customer-Supplier Relationship Internal and External
– Reduce inventory while satisfying the external customer
– Manage capacity better
WarehouseReceiving
Shipping
Manufacturing
Inventory
Inventory Inventory
Inventory
PUSH SYSTEM
Receiving
Shipping
Manufacturing
Inventory
PULL SYSTEM
CustomerCustomer DemandDemand
Supply PushSupply Push
DMAIC in CPIImprove
• Reliability Centered Maintenance : RCM/RCM 2
Reliability Fact-Based Decision Making ProcessReliability Fact-Based Decision Making Process
Repair & Record
MeetsDesign
life
Yes
One TimeCondition
Overused/Overstressed
Yes
No
Yes
PermanentUsage Change
Bad Actor
Required LifeNot Met
Mis-handled
Infant Mortality
Wearout Mode
Redesign For Robust Rugged
Modification Retro-fit
Retire Replace
Corrective Action
Higher Quality ComponentScreen Burn-in
Overhaul USLFP
No
No
1 2
3
8
7
6
9
5
4
DMAIC in CPIImprove
• Takt Time – German for beat/rhythm
– Pull concept for tuning the rate of the process to customer need
– Synchronizing Supply and Demand
– Computed rate that a process in a value stream should operate at to just satisfy customer demand
– Analysis of flow in the process identifies non-value- added steps
DMAIC in CPIImprove
• Theory of Constraints (TOC)– Developed by Eliyahu Goldratt focus on:
• Identifying the system’s constraint• Exploit the constraint to optimize performance• Subordinate all else to the attention on the constraint• Elevate the constraint to reduce its influence
– Equipment, personnel, eliminate waste, balance flow• Go back to step one and repeat for new process
– Critical Chain (CC): a planning tool that respects constraints across a number of projects or activities.
DMAIC in CPIImprove
• Value-Added– In the eye of the customer
– Three types of Activities
• Value-Added
• Non-Value-Added
• “Necessary” Non-Value-Added
– The Goal Identifying and Reducing or Eliminating NVA Activities
Can eliminate without impacting
customer?
Can eliminate without impacting
customer?
Value AddedValue Added
Eliminate ifpreceding activitydone correctly?
Eliminate ifpreceding activitydone correctly?
Required by a Control?
Required by a Control?
Customer request? Customer request?
Impact internal customer?
Impact internal customer?
Improving internal efficiency
Improving internal efficiency
Non-value addedNon-value added
NecessaryNecessary
Non-value addedNon-mandatory
Non-value addedNon-mandatory
Can control be eliminated?
Can control be eliminated?
Yes
No
No
Yes Yes
No
No
Yes
Yes
Yes
No
No
Yes
Value Added Analysis
No
Yes
DMAIC in CPI Analyze
DMAIC in CPIImprove
• Total Productive Maintenance (TPM)– Design products that can be produced with existing
equipment
– Design machines, tooling and fixtures for easier operation, changeover and maintenance
– Train and retain personnel
to operate and maintain
equipment
– Purchase machines that
maximize production potential
– Design preventive mainte-
nance plans that span the
life of the equipment
Just too much Maintenance
DMAIC in CPIImprove
• Quality at the Source– A quality philosophy that places
responsibility for meeting customer specifications and standards at the point of task accomplishment.
– Approaches
• Source inspection for purchased components and consumables
• Personnel self-inspection of their work and that of previous steps
• Poka-Yoke: Design and utilize mistake proof equipment, processes and products.
DMAIC in CPIImprove
Quality At The Source
DMAIC in CPIImprove
5 / 6 S• 5S
– Seiri: Sort – Get rid of clutter • Separate the needed from the unneeded• Eliminate the latter
– Seiton: Set in order• Everything in its proper place
– Seiso: Shine, i.e. Clean the work area– Seiketsu: Standardize
• Establish written standards for cleanliness– Shitsuke: Sustain i.e. Make the first 4S a habit
• 6S = 5S + Safety
DMAIC in CPIImprove
DMAIC in CPIImprove
• Visual Management: Making information that is relevant about the process clear, timely and regular.– Displays production status– Communicate between departments/shifts– Faster response to problems– Increased awareness of Waste– Promotes culture change
DMAIC in CPIImprove
• Visual Management– Subjects: Safety, security, training, productivity
measurements, production status, process performance, housekeeping, defect/scrap rate.
– CAUTION! Visual Management is not show and tell for the bosses! Don’t be seen as showing off to upper management or bragging about the goals you set.
DMAIC in CPIImprove
Single Minute Exchange of Dies (SMED)– Reduce Setup Time– Not limited to
Manufacturing– The Approach
• Separate internal and external setup
• Convert internal to external setup
• Streamline setup• Perform setup in
parallel or eliminate • Document procedures
DMAIC in CPIImprove
• Batch Size Reduction– Applicable to Manufacturing &
Maintenance & Other– Reduce batch size by
eliminating constraints• Tradition• Instructions (lack-of)• Equipment• Material• Co-dependency
– Large batches strain systems– Cost vs. Benefit
DMAIC in CPIImprove
• Production Leveling– SMED
– Batch Size Reduction
– Automated Resource Planning (JIT)
– Mixed Model Scheduling
DAILY PRODUCTION
0
10
20
30
40
50
OOUTPUTS
VO
LU
ME
DAILY PRODUCTION
0
2
4
6
8
10
12
14
OUTPUTS
VO
LU
ME
DMAIC in CPIImprove
• Point-of-Use Systems– Placing required resources at the site of production
Cus
tom
er S
ervi
ceC
usto
mer
Ser
vice
Custom
er Service
Custom
er Service
Inventory
Quality Assurance
Person 1
Person 1
Person 1
Person 1
Personnel
Personnel
Personnel
Personnel
Person 1
Management
Personnel
DMAIC in CPIImprove
Point-of-Use Systems– Placing required resources at the site of production
Cus
tom
er S
ervi
ce
Custom
er Service
Inventory
Quality Assurance
Person 1
Person 1
Person 1
Person 1
Personnel
Personnel
Personnel
Personnel
Person 1
ManagementPersonnel
Personnel
Personnel
Person 1
Person 1
DMAIC in CPIImprove
• Standardized Work– An agreed upon set of work procedures that:
effectively combine people, materiel, and machines to maintain quality, efficiency, safety, and predictability.
– Define the Work• Cycle Time• Work in Process (WIP)• Sequence• Takt Time• Layout • Inventory needed to conduct the activity
– Poka Yoke
DMAIC in CPIImprove
Best Practices (Benchmarking)• Benchmarking is a process of comparing
– Who do we compare ourselves to?
• Benchmarking is a continuous process– If you want to stay on top you have to keep
climbing.
• Benchmarking is a measurement and analysis process.– What Characteristics do we measure?
– How do we measure?
DMAIC in CPIImprove
• Home Grown Ideas– Who knows the As-Is work best?
– Do people ever complain about how work is done?
– Do people ever say things like:
• “If we only had this tool, computer, etc.”
• “Why don’t we do it this way.”
• “I know there has to be a better way.”
– Is the organization’s culture receptive to new and innovative Ideas?
– Some of the best and brightest minds are in your own organization. USE THEM.
DMAIC in CPIImprove
• Rank and Select Solutions
IMPLEMENT EASY
BIG PAYOFF LITTLE PAYOFF
IMPLEMENT POSSIBLE
CHALLENGE KILL
IMPLEMENT HARD
52
3
1
6
7
4
DMAIC in CPIImprove
• Develop To-Be Process Models/Maps– Model Activities
• IDEF 0
• Business Process Modeling Notation (BPMN)
– Model Cost
• Activity Based Costing (ABC)
– Model Data
• IDEF 1X
– Develop To-Be Process/Activity Maps
• Cross Functional Process Mapping
DMAIC in CPIAnalyze/Improve
• IDEF 0 – Context Diagram
PROVIDE DOUGHNUTS AND PASTRY
A0INGREDIENTSCUSTOMER ORDERSUPPLIESBILLPAYMENT
SALEMATERIAL ORDERPAID BILLBANK DEPOSIT
PERSONNEL
RECIPEPOLICY & PROCEDURESHEALTH REGULATIONS
EQUIPMENTINFORMATION SYSTEMFACILITIES
BUDGET
Internal (Private) Business Processes
High Level Internal Model
Take Order
+
ObtainMaterial
+
MakeProduct
+
SellProduct
+
Take Order
+
Take Order
+
ObtainMaterial
+
Take Order
+
ObtainMaterial
+
Take Order
+
MakeProduct
+
ObtainMaterial
+
Take Order
+
SellProduct
+
MakeProduct
+
ObtainMaterial
+
Take Order
+
Do
ug
hn
ut
Sh
op
Abstract (Public) Processes
SellProduct
+
MakeProduct
+
ObtainMaterial
+
Take Order
+
Do
ug
hn
ut
Sh
op
Customer
Place Order Deliver Product
Collaborative (Public/Global) B2B Processes
Ship OrderFill Order
ReceivePurchase
Order
Fo
od
Ser
vice
Ven
do
r
SellProduct
+
MakeProduct
+
ObtainMaterial
+
Take Order
+
Do
ug
hn
ut
Sh
op
DMAIC in CPIImprove
Resources
Cost Objects
Activity &Activity
Cost Pool
ACTIVITYCENTER(s)
RESOURCEDRIVER Cost
Element
ACTIVITYDRIVER
ABC Model
PROCESS
A B C
DMAIC in CPIImprove
Resources
Cost Objects Derived from IDEF- 0 Outputs
Activity &Activity
Cost Pool
ACTIVITYCENTER(s) RESOURCE
DRIVER CostElement
ACTIVITYDRIVER
IDEF interviews & Controls
Activity definitions
Activity Surveys
PROCESSfrom
Strategic PlanBSP
Goals & Objectives
Direct from IDEF-0 activities
IDEF Inputs and Mechanisms, as well as
Traditional Ledger Accts
-- Derived from Traditional reports-- Expenses incurred-- Interviews
ICOMs Point To Entities
Enroll
Student
StudentEnrolledNew
Student
Registrar Staff
Course Schedule
An
Student
Course-Schedule
Personnel
DMAIC in CPIImprove
Departments (Organizational Elements/Units)
Symbols:Start, Activity, Decision, etc.
Activity Flow:Arrows
DMAIC in CPIImprove
• Develop To-Be Value Stream Map
Field UnitOutsideSource
AssembleInspectMachinePlateMachine
Disassemble
Warehouse
ERP
Material/Production
Control
Inspect/Order Parts
Pack/Ship
LANDING GEAR OVERHAUL
Rework Process
PASS
FAIL
Repairable Item
Packing Material
Assembly PartsMachiningConsumables
MachiningConsumables
PlatingConsumables
Repairable Item
Consumables &Repair Parts
Request for Replacement
30/60/90 DayPurchase Order
Ship Order
Name UnitValue
Name UnitValue
Name UnitValue Name UnitValue Name UnitValue
Name UnitValue
Name UnitValue Name UnitValue
Name UnitValue
DMAIC in CPIImprove
• Proof the Concept – Design of Experiments (DOE)
– Introduction to Prototyping/Piloting
– Introduction to Benchmarking
– Introduction to Simulation
Design of Experiments (DOE)• Experiments vs. Observations• Experimental Approaches
• Trial and Error• One factor at a time• Multiple factors at a time
(DOE)
• Purpose of DOE: What drives the process?
• Identify which Xs are Significant to Y
• Quantify relationships between Xs and Y
• Confirm Improvement• Set Xs to Optimize Y
DMAIC in CPIImprove
DMAIC in CPIImprove
Prototyping/Piloting• Test the To-Be
• Mitigate Risk
• Tweak the Process
• Less Disruption
• Lower Cost
DMAIC in CPIImprove
Benchmarking• Benchmarking is a
process of comparing– Who do we compare
ourselves to?
• Benchmarking is a continuous process– If you want to stay on top
you have to keep climbing.
• Benchmarking is a measurement and analysis process.– What Characteristics do we
measure?– How do we measure?
Uses & Benefits of Simulation
• Test Assumptions About the Process
• Conduct “What If” Scenarios
• Mitigate Risk– Lets process
improvement be tested while current process continues
– Less cost involved
– Make corrections before implementation
DMAIC in CPIImprove
Simulation• Discrete-Event
System Models– Number of customers
waiting to be served is a discrete event
– There is a specific number at given points in time
DMAIC in CPIImprove
DMAIC in CPIImprove
Simulation• Continuous System
Models– Amount of Oil flowing
through a pipeline varies continuously
– The volume of oil passing a given point can vary depending on pressure, rate, supply and demand
DMAIC in CPIImprove
Develop Business Case• Introduction to Business Case Analysis• When is BCA applied in CPI?
– Preliminary BCA
• Develop Preliminary Business Case Analysis (BCA)
• Perform Technical Review of BCA Documents
– Final BCA
– Update BCA
• BCA as a Management Tool
DMAIC in CPIImprove
Types of BCA
(Analyze)(Analyze)
(Improve)(Improve)
(Control)(Control)
1. Review process improvement recommendations
2. Review organizational change management plan
3. Review technology change management plan
4. Develop preliminary Business Case Analysis
5. Perform technical review of BCA documents
6. Validate/revise preliminary BCA report
7. Prepare final Business Case Analysis report
8. Review and approve BCA
Steps to Document the BCA Decision Package
DMAIC in CPIImprove
DMAIC in CPIImprove
Approve Final Solution
• Once senior authority approves the improvement plan actual deployment may begin
• Deployment planning and execution are key to success
DMAIC in CPIImprove
• Plan and Implement Solution– Organization
(culture & structure) change management plan
– Technology change management plan
– Project management planning
– Visual Management
DMAIC in CPIImprove
Organization & Culture Issue Areas
• Organization Culture
• People Skills and Knowledge
• Organization Structure and Demographics
• Organization Policies and Directives
DMAIC in CPIImprove
Technology Enablers• Process Information
• Automation
• Tracking
• Parallelism
• Analysis Support
• Artificial Intelligence
• Relocation of
• Activities
DMAIC in CPIImprove
Deployment Strategies
• Phased deployment – involves bringing on
parts of the new process on line over time
• Parallel deployment – involves keeping the
old process going while bringing the new process on line.
• Big Bang deployment – the all at once scenario