All Gain, no Pain! Using Quality to assist Supply Chain goals...• Six Sigma 1.0 – Improving...
Transcript of All Gain, no Pain! Using Quality to assist Supply Chain goals...• Six Sigma 1.0 – Improving...
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All Gain, no Pain! Using Quality to assist
Supply Chain goals
Presented by: David Muncaster, CSSBB
Senior Program Manager, Sales Operations
Staples Business Advantage Canada
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Who’s this guy standing up in front of you?
• Senior Program Manager, Sales Operations at Staples Business Advantage Canada, covering:
• ISO/Regulatory/Sales Applications/CRM/Customer Survey and Continuous Improvement
• Worked in manufacturing field for 10+ years
• Working in distribution field for 12.5 years
• Past chair of ASQ Vancouver Section
• Certified Six Sigma Black Belt
• Pisces and enjoy long walks in Stanley Park
• What’s the deal with “Staples Business Advantage” – isn't that the same as Staples, the retail store?
• Part of the Staples North America family
• The largest office products company in Canada
• We are the business to business unit of Staples – not affiliated with the stores
• Most customers order off of our E-way platform (electronic order website)
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What do you do again?
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Using Quality in 4 simple steps!
1. Speak the language of business:
• “Show me the money!”
2. Find out where the waste is:
• Using LEAN
3. Show the benefit and improvement:
• Using Six Sigma
4. Bask in the glory and praise!
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Invest back in business - ROI
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Product cost is just the tip of the iceberg!
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Origin of Lean • Lean History:
–Pioneered by Ford in the early 1900’s
–Perfected by Toyota post WWII
• Known by many names:
–Toyota Production System
–Just-In-Time
–Continuous Flow
• Outwardly focused on being flexible to meet
customer demand, inwardly focused on reducing or
eliminating the waste and the cost in all processes
• Employee engagement – “go to the floor”
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• Six Sigma 1.0 – Improving Process Performance (Motorola)
• Six Sigma defined as a method to eliminate variation to customer requirements
• Voice of Customer defines quality
• Supported by a suite of quality and
statistical analysis tools
• Six Sigma 2.0 – Management System (GE/Allied Signal)
• Six Sigma defined as a management system to execute business strategy
• CEO and P&L owners trained and actively engaged in the process
• Defined organization and set of roles (Black Belts, Champions, Sponsors, Green Belts, etc.) creates accountability
Origin of Six Sigma
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Look for the “waste” in the area (TIMWOOD)!
Waste comes in many forms! Here are the most common:
• Transportation (wasteful movement of product or service)
• Inventory (product or service waiting for customers)
• Movement (wasteful movement of employees)
• Waiting (employees waiting)
•Over Production (more than customer demands)
•Over Processing (more than customer requirements)
• Defects (quality issues)
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Transportation (wasteful movement of product or service)
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Inventory (product or service waiting for customers)
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Movement (wasteful movement of employees)
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Waiting (employees waiting)
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Over Production (more than customer demands)
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Over Processing (more than customer requirements)
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Defects (quality issues)
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A quality measure and improvement program developed by Motorola that focuses on the control of a process to the point of ± six sigma (standard deviations) from a centerline, or 3.4 defects per million items. It includes:
• identifying factors critical to quality as determined by the customer
• reducing process variation and improving capabilities
Six Sigma definition
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Understanding 6 Sigma
X
On time Delivery
Customer specs
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s
2
3
4
5
6
308,537
66,807
6,210
233
3.4
69.2%
93.32%
99.379%
99.977%
99.9997%
Yield
Defects per Million Opportunities
DPMO
Sigma Quality Level Conversion Table
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3 sigma = 93.32% yield
6 sigma = 99.9997% yield
66807 x $50.00 =
$3.3 Million
versus
3.4 x $50.00 =
$170
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Why aim for six sigma? 3 sigma versus 6 sigma
3 Sigma 6 Sigma
• 20, 000 lost pieces of mail per hour • 7 lost pieces of mail per hour
• 5,000 surgery mistakes per week • 1.7 surgery mistakes per week
• 2 long or short airplane landings at a major airport per day
• 1 long or short airplane landing at a major airport every 5 years
• 200,000 wrong drug prescriptions per year
• 68 wrong drug prescriptions per year
• No electricity for almost seven hours each month
• One hour without electricity every 34 years
• Unsafe drinking water for almost 15 minutes each day
• One unsafe minute every seven months
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Define the opportunity from both business and customer perspectives.
Understand the process and it’s performance – Understand the “Y”
Search for the key factors that have the biggest impact on process performance and determine the root causes – Find the Critical “X’s”
Develop, pilot, and implement solutions for the Critical “X’s”
Develop standardized work and visual tools for project transition – Control the “X’s”
DMAIC Methodology
Analyze
Control
Measure
Define
Improve
Gate Review
Gate Review
Gate Review
Gate Review
Gate Review
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LSS example
Aug
201
5
May
201
5
Feb
2015
Nov
201
4
Aug
201
4
May
201
4
Feb
2014
Nov
201
3
Aug
201
3
May
201
3
Feb
2013
94.00%
92.00%
90.00%
88.00%
86.00%
84.00%
82.00%
Month
% 5
- E
xtr
em
ely
Sa
tisfi
ed
_X=89.80%
UCL=92.02%
LCL=87.58%
FY2013 FY2014 FY2015
Control Chart of Problem Free Order by Fiscal Year
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Putting it all together!
• Combine LEAN and Six Sigma for accelerated improvement
• Involve those doing the work in the improvement efforts
• Investigate waste in ALL areas of the business
• Have a structured program for solving problems
• Use data to prove your point for improvement
• Use data to show the improvement made
• Sustain those gains!
• Talk the language of business - $$$$