1 Continuous Process Improvement
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Continuous Process ImprovementHost Nation Conference
Poiana Brasov, Romania
June 7, 2007
Senior Quality Assurance SpecialistDefense Contract Management Agency
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Agenda
Introduction to Continuous Process Improvement(CPI)
Operational Definition
Background
Why Implement CPIOverview of selected tools
Kaizen
Lean
Six Sigma
Innovation
Summary and Take Aways
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Introduction Key Points
Having a customer focus as strategic objectiveUnderstanding customers needs and wants
What adds value to customers product or service
Understanding of processesUnderstanding the theory of variation
Knowing the difference between prevention anddetection
Understanding Culture - Creating culture of CPI Applies to all processes
Involves everyone ± team work
Is a on-going continuous effort
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Operational Definition
A comprehensive philosophy of operations that is built around the
concept that there are always ways inwhich a process can be improved tobetter meet the needs of the customer and that an organization should
constantly strive to make thoseimprovements.
Source: DoD Continuous Process Improvement Transformation Guidebook
Continuous Process Improvement ²
A comprehensive philosophy of operations
that is built around the concept that there are
always ways in which a process can beimproved to better meet the needs of the
customer and that an organization should
constantly strive to make those
improvements.
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Why Implement CPI?
Value added to customer in th ei r t ermsWh at th e Customer i s wi lling to p ay more f or
Can be used f or all ent erp ri se p rocesses - not just man ufact uring
Processes imp rove vari ation i s decreased
Prevention of defect s rath er th an det ection Decrease in cy cle times
Productivit y increases
Increased reli abi lit y
Resource imbalances imp rovedImp roved morale
Assi st s in achi eving st rat egic goals
Lower cost s, increased p rof it an d market sh are
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Cost of Quality (CoQ)
As quality increases, Cost Decreases, therefore quality is free.
³Quality is free but it is not a gift. What costs
money are the unquality things- all the actions
that involve not doing jobs right the first time ´
Cost of Poor
Quality
External
failure costs
Internal
failure costs
Prevention
costs
Appraisal
cost
Cost of Good
Quality
Cost of
Quality
Phil Crosby
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Engineering Time
Scrap
Cost of Poor Quality The Tip of the Iceberg
Rework
Repair
Decreased Capacity
Decrease in the number units procured
Possible Loss of program
Management Time
Schedule DelaysDecreased
Readiness Levels
Supply Chain Disruption
Field Failures
Adapted from Executive Guide to Lean Six SigmaPhoto: Judith Currelly
Reinspection
Loss of mission Loss of life
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History of CPI
From caveat emptor to
And every thing in between
Lean Six Sigma
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Eli WhitneyProduct
Standards
ShewhartStatisticalMethods
JuranProcessAnalysis
TaguchiCustomer
Focus
DemingSystemsThinking
Smith(Motorola)
Rigor
Welch BossidyOrganization
Infrastructure
CraftProduction
IndustrialProduction
ScientificManagement
Taylor ±TimeMotionStudies
Womack& Jones
StatisticalProcessControl
QualityControl
QualityEngineering
TQM-TotalQuality
Management
SixSigma
v2
SixSigma v1
OrganizedLabor-
Worker¶sRlights
ToyotaOhnoShingo
Ford-WorkAnalysis
SloanModernManagement
MassProduction
Lean Six
Sigma v1
AssemblyLine Manufacturing
HarryDMAIC
ToyotaProductionSystem
LeanEnterprise
SimplifiedManufacturing
Simplified
Service Process
Cox-ItalianTractor Co.
George & WilsonOptimizedComplexity
Turner Berlin Airlift
SimplifiedProduct
George,LockheedMartin, others
Lean SixSigma v2
Historical Development of TQM,
Six Sigma, Lean Enterprise and
Lean Six Sigma
Source: Lean Six Sigma: Fusion of Pan Pacific Process Upton and
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Our Focus Today Our Focus Today
Kaizen Lean Six SigmaKaizen Lean Six Sigma
QFD
FMEA
CPI ± Not Just One Tool or Concept
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Overview of tools - Kaizen
Japanese term ± ³Kai´- meaning continuous
³zen´- meaning improvement
Small scale continuous improvements
Incremental steps- addresses single problemRapid intense effort lasting 3-5 days
Known as Kaizen Events, Kaizen Blitz
Kaizen bursts 5-15 minutes in length
DoD Rapid Improvement Event
The Kaizen philosophy assumes that our way of life²be it our working life, our social
life, or our home life deserves to be
constantly improved. Maasaki Imai
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Kaizen
Involves those performing the work or directly affected by problem
Team participants
Sponsor- management provides resources,
charter- and most important ownership
5-10 members- including team lead
Wisdom of team versus knowledge of 1
Utilizes Gemba ± go where work isperformed - go and see
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Kaizen
Possible applications
Bottle necksDefects
Too many process steps
Excessive handling
Customer dissatisfactionSimple tools- require limited trainingPlan, Do, Check, Act
Process map, data ± check sheets, Pareto
Root cause analysis ± 5 whys
Why did machine fail? Motor burned out Why did the motor burn out? Shaft seized
Why did the shaft seize? No lubrication
Why was there no lubrication? Filter was clogged
Why was the filter clogged? Wrong mesh size ± root cause!
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Kaizen
Standardize ImprovementFollow up
Repeat
Chart Source Lockheed Martin
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Overview of tools - Lean
Waste - anything that uses resources without providing value to thecustomer
Value added ± Activities that change a product or service in waycustomers view as important and necessary
Non value added NVA- any activity that takes time, material, space, butdoes not add value from the customers perspective
Value stream- Specific activities required to design, order, and providea specific product or piece of information from, concept to launch- order
to delivery into the hands of the customer Value stream map- identification of all the specific activities occurringalong a value stream for a product or product family
³If it doesn't add value it¶s waste´Henry Ford
Source :DoD CPI
It is not uncommon to find 90 to 95% of the time consumed in
a process to be NVA when considering waste in any form
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Lean
7 Deadly wastes + 11. Overproduction
2. Waiting
3.Transportation4.Overprocessing
5.Unnecessary inventory
6.Excessive movement7.Production of defects
+ Underutilization of employeesSource :DoD CPI
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SUSTAIN
ConsistentlyApplying 6S
Methods In A Uniform
And Disciplined Manner
SORT
Clearly DistinguishNeeded Items FromUnneeded ItemsAnd EliminateThe Latter
STRAIGHTEN
Keep Needed ItemsIn The Correct Place
To Allow ForEasy And
ImmediateRetrieval
SAFETY
IdentifyDanger AndHazard SHINE
Keep TheWorkshop
Swept AndClean
STANDARDIZE
MaintainingEstablishedProcedures
SERI
IDENTIFY/SEPARATE NECESSARY FROM
UNNECESSARY
SEITON
PLACEMENT/IDENTIFICATIONOF NEEDED WORK ITEMS
SEISONMAINTAINING A
CLEAN WORK PLACE
SEIKETSUSTANDARDIZATION
FOR EASE OF USE
SHITSUKE NOTATIONAL METHOD
FOR THE CONFORMANCE
TO RULES
Red tag event
The 5S starts theinvolvement processand teachesstandardization.
Lean - Japanese 5S - Lockheeds 6S
Chart: DAU Bill MotleyCreates visual order, visual control, transparency. (Waste will remain hidden)
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Lean - Managing the White Space
Chart source : Lockheed Martin
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Tool Overview- Six Sigma
Helps to attain Strategic VisionPhilosophy- reduce variation, make customer focused data driven decisions
Methodology ± structured problem solving
roadmap
Metric (standard of measurement)
Vehicle for:Vehicle for:
Customer focusCustomer focusBreakthrough improvementBreakthrough improvement
Continuous improvementContinuous improvement
People InvolvementPeople Involvement
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Lean Six Sigma: A Powerful Methodology
MeasureDefine Improve Analyze Control
What is important tothe customer:
Project SelectionConfirm
understandingw/sponsor
Team Formation
Establish Goal- ROIC
How well we are doing?understand the causes of theproblem:
Est. baseline, process capabilityConstruct Process Flow toobserve process, Collect Data ,
Validate Measurement System
The process:
Analyze Data,
regression analysis,DOE, Identify RootCauses, SupplyChain optimal?DevelopImprovement plan
The process gains:
Ensure solution issustained, documentimproved process, turnresults into $
The process performance measures:
Prioritize root causes
Innovate, pilot solutions
Validate the improvement
D M A I C
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Lean Six Sigma - Tools and Techniques
Define Measure Analyze Improve Control
Benchmarking
FMEA
IPO Diagram
Kano¶s Model
Knowledge BasedMgt
Project Charter
SIPOC Model
Quality FunctionDeployment
Voice of Customer Task Appraisal / Task
Summary
Value StreamMapping
ConfidenceIntervals
MeasurementSystem Analysis
Nominal GroupTechnique
Pair wise Ranking
Physical ProcessFlow
Process Capability Analysis
Process FlowDiagram
ProcessObservation
Time Value Map
Value Stream
Mapping
Waste Analysis
Affinity Diagram
Brainstorming
Cause & EffectDiagram
e-test
F-test
Fault Tree Analysis
FMEA
Histogram
Historical Data
AnalysisPareto Chart
Reality Tree
Regression Analysis
Scatter Diagram
t-test
5 Whys
DFSS
DOE
Kanban
Mistake Proofing
PF/CE/CNX/SOP
Standard Work
Takt Time
Theory of
Constraints
Total Productive
MaintenanceVisual Management
Work Cell Design
5S WorkplaceOrganization
Control Charts
Control Plan
Reaction Plan
Run Charts
StandardOperatingProcedures
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Customer Focused - Both Internally & Externally
Six Sigma
USLLSL
USL¶LSL¶
USL
T
LSL
USL
T
LSL
Characterize
Optimize
Breakthrough
T
T
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Six Sigma Metric3.4 Defects Per Million Opportunities
A very good level of quality - but how good?
Sigma
Level
DPMO
2 308,770
3 66,811
4 6,2105 233
6 3.4
Defect Levels Corresponding to Sigma Levels
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Sigma Level Comparisons
Th ree Sigma Quality Level Six Sigma Quality Level
54,000 Incorrect drugprescriptions per year
3 Incorrect drug prescriptionsevery year
40,500 billing errors year 2 billing errors a year
No electricity, water, or heat for2 hours a month
No electricity, water, or heat for1 second every 2 years
Five long or short landings atHeathrow each day
One long or short landing atHeathrow every 10 years
5,400 lost articles of mail perhour
65 lost articles of mail per day
Is 99.73% Good enough
for your organization?
Is 99.999660% Better?
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Innovation
Innovation is an integral component of CPIEveryone should be encouraged to:
Be creative
Look for ideas continually
Imagine uncharted territories
Roam around the world in your mind
Visualize situations
Handle multiple variables
Prioritize a combination of variables
Machines, materials, methods, manpower, environment
Never criticize
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What do Bono and Tom Cruise hav e in common?
Th ey both look cool wearing sunglassesWhat does t hat have to do wit h t he DoD?Number of eye in juries on t he increase- 16% of casualt ies are att ribut ed to eye in juries
What was root cause? - sand, dust , debris from helicopt ers, smaller shrapnel fragment s?What is typical age of soldier?Issued glasses were too ugly FL seniors should be wearing
Cont ract ed wit h Wiley f or ballist ic eye prot ect ionMore consist ent use- automat ic drop in in juries
Innovation
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Innovative solution to critical problem5Whys is an effective tool
Significant reduction in overallInjuries and
Injury severity
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What can we learn from NASCAR?
Both ar e ver y efficient in their pit stops- they ar e LEAN
8-14 second s to change 4 t ir es, r eceive fuel, mak e
adjust ment sWhat does that have to do with the DoD?
W e ar e t err ibly in efficient in our d epot and field maint enanc e
Logist ic s foot pr int is huge, Sys. d esign n eed s improved
Innovat ion and CPI
F or mula 1?
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UH60 Blackhawk utilizes laminate windshield tear offsSimple solution to tactical problem- sandy, dusty env ironmentReplace Mylar instead of windshield, faster , <$, increased readiness
Terminal High Altitude Area Defense (THAAD) used NASCARsCarlson for Pit stop technology
fewer people with
less training, transparency created, tools reduced from hundreds to16 , rear cable panel mov ed to front panelremov al and replacement of all equipment reduced from ½ day to <½ hour
M1 A1 design focused on ability to directly engage doesnt do wellkeeping engaged. Reduction in maintenance and refueling time keepstank engaged
Pit stop engineering has been adopted by the Army
NASCAR Innovation and CPI
M1A2 being refueled.(Photo by Greg Stewart)
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CPI Summary
³Its funny how everything begins to look like anail when the only tool you have is a hammer´
Th
ere are many CPI toolsWe scratched the surfaceTailor tool to your need You must decide what thebest tool is for a particularproblem
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Summary Take Aways
Having a customer focus as strategic objectiveUnderstanding customers needs and wants
What adds value to customers product or service
Understanding of processes
Understanding the theory of variation
Knowing the difference between prevention anddetection
Understanding Culture - Creating culture of CPI Applies to all processes
Involves everyone ± team work
Is a on-going continuous effort
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Resources
May 2006
American Society for Quality ASQSix Sigma Forum
Lockheed Martin
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Continuous Process Improvement
Quest ions?
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Resources
CPI Back up Mat erial
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CPI
Methods
MFG.
DESIGNEng.
PURCH.
MAINT.
ADMIN.
QA
Marketing
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Cellular Manufacturing Flow
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Six Sigma
Unlike Kaizen and Lean requires significant
investment, trainingDedicated resources
Time consuming ± 2-6 Mo
Uses sophisticated tools- reliance on
statisticsUsed for toughest problems- not low hangingfruit
Capable of breakthroughs of significant
magnitudeImproves process capability and reducesvariation
Finds the sweet spot in the process operatingwindow
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Q W W WWWW
68.26 percent
95.46 percent
99.73 percent
MM74
3 Sigma Process
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u-6W u-5W u-4W u-3W u-2W u-1 W s u u+1W u+2Ws u+3W u+4W u+5W u+6W
68.26%
95.44%
99.73%
99.993%
99.999943%
99.999998%
6 Sigma Process
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Definition of a Value Stream
TheV
ALUE
STRE
AM is the entire set of processes or activities performedto transform the products and services into what is required by thecustomer.
A P rimary Focus i s TIME,
Product and / or Service Flow
Information Flow: Quickly In All Directions
The VALUE STREAM
S ell Customer sSupplier s M ake reP r ocu reDesign
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The Toyota Production System
Just-In-Time³Right part, right amount,
right time´
Jidoka
(In-station quality)³Make Problems Visible´
Leveled Production (heijunka)
Stable and Standardized Processes
Takt time
planning
Continuous flow
Pull system
Quick changeover
Integrated
logistics
Au
tomatic
stops Andon
Person-machine
separation
Error proofing
In-station quality
control
Solve root cause of
problems (5 Why?)
Waste Reduction Genchi Genbutsu
5 Why¶s
Eyes for Waste
Problem Solving
People & Teamwork Selection
Common Goals
Ringi decision making
Cross-trained
Continuous Improvement
Visual Management
Toyota Way Philosophy
Best Quality - Lowest Cost - Shortest Lead Time - Best Safety - High Morale
through shortening the production flow by eliminating waste
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Toyot a Motor Manufact uring
MISSION
1. Add value to customers and society
2. As an American company
cont ribut e to t he economicgrowt h of t he community and t he Unit ed St at es
3. As an independent company, cont ribut e to t he st ability and
well-being of t eam members
4. As a Toyot a group company, cont ribut e to t he overall growt h of Toyot a
Ford Motor Company
MISSION
Ford is a worldwide leader in automot ive and automot ive-relat ed
product s and services as well as in newer indust ries such as aerospace, communicat ions, and financial services.
Our mission is to improve cont inuallyour product s and services to meet our
customers needs, allowing us toprosper as a business and to provide a reasonable ret urn to our stockholders, t he owners of our business.
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