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Combining Lean/Six Sigma & Ideation in New Product/Service Development

Rob Bryant, CSC Lean/Six Sigma Program Leader Corporate Vice President of QualityJanuary 15, 2009

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Lessons Learned (right up front)

• The company has to have the desire to change (baseball story)

• Align the change with a strategic initiative

• Collect subjects for Strategic Initiatives from Management but also Employees through an Ideation Event.

• Passionate Executive sponsorship

• An endorsed Project charter

• Knowledgeable and excited team

• Provide an amnesty program

• Provide an effective award program

• Set realistic goals

• Apply Lean first

• Belts must have time to work projects

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• Only apply the tools that fix the problem-not the entire arsenal.

• Deliver low-quick wins, then continue the longer projects

• Assemble a passionate team willing to visualize the steps, count the cost, pay the price, and never give up!

• Flattering introduction of team members

• Develop a phased approach for large improvements

• Conduct follow-up meetings

• Share the results of projects and the entire program

• Train all Sr. Management at the “Awareness or Champion” level

• Ensure finance measures the results, not L6S practitioners

• Put a strong board in place and control the program (especially for Global companies)

• Eliminate the defect or very strong C in DMAIC (Hawthorne Effect)

Lessons Learned (right up front)

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Three Components to a Successful Six Sigma/Ideation Program

• Support system– Infrastructure for the project/belt selection and training– Finance engagement– Management support at all levels– Put Ideation in place (contact information on later slide)

• Belts– Crisp process for identifying the right belts (Green Belt,

Black Belt, Master Black Belt)– Conducting training

• Projects– Crisp process for project selection– Pick projects aligned with Strategic Initiatives– Choose Projects from Ideation Events– Matching the belts with the projects– Improve processes by increasing customer/employee satisfaction,

revenue, and performance while reducing costs, waste, and defects

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My Own Walk Through Change

• The fall that took it all

• My three thoughts on the way down– This is really going to hurt

– Did I kiss my family goodbye?

– I will survive

• Paralysis

• Surgeries

Hard times do not dictate the outcome — you do.

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How They All Fit TogetherMethodology Analogy

DesignforSix Sigma

Lean

Six Sigma

Kaizen

Lean/Six

Sigma

Solving Problems with Lean/Six Sigma & Ideation

Ideation

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Testing

Inspection Costs

Scrap

Rework

Rejects

Warranty

CustomerAllowances

Pricing andBilling Errors

RevenueLeakage

Late Delivery

Lost Sales

Late Product Introduction

Long CycleTimes

Lost CustomerLoyalty

ExcessInventory

ExcessiveOvertime

OverdueReceivables

Eng. Change Orders

Expediting Parts

Time withDissatisfiedCustomers

Morale, Productivity,Turnover

Lost Opportunity

Traditionalquality costs —

4% to 5% of sales

Lean/Six Sigma attacks the entire “iceberg” systmatically resulting in higher quality, lower cost, timeliness, and improved customer satisfaction.

Which projects do you choose? Gain momentum by aligning business problems and strategic initiatives.

Hiddenqualitycostsdifficult to measure — around 15% to 25%

Strategic Initiatives:1. Reduce time to receive parts from vendors.2. Reduce the cost of bidding.

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LEAN your processes to measure productivity and sustain your deployments. This will reduce:

• Loops

• Non-value added approvals

• Bottlenecks

• Series steps

• Unnecessary complexity

• Non-value added steps

• Process time/cycle time

• Problem steps

• Set-up time

• Manual effort

• Rework

• Pushes (insert pulls)

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The Power of Lean!

Step Process Yield Step Process Yield1 0.75 0.8 0.85 0.9 0.95 0.99 1 0.75 0.8 0.85 0.9 0.95 0.992 0.75 0.8 0.85 0.9 0.95 0.99 2 0.75 0.8 0.85 0.9 0.95 0.993 0.75 0.8 0.85 0.9 0.95 0.99 3 0.75 0.8 0.85 0.9 0.95 0.994 0.75 0.8 0.85 0.9 0.95 0.99 4 0.75 0.8 0.85 0.9 0.95 0.995 0.75 0.8 0.85 0.9 0.95 0.99 5 0.75 0.8 0.85 0.9 0.95 0.99

6 0.75 0.8 0.85 0.9 0.95 0.99 Yield 23.73% 32.77% 44.37% 59.05% 77.38% 95.10%

7 0.75 0.8 0.85 0.9 0.95 0.99 8 0.75 0.8 0.85 0.9 0.95 0.99 9 0.75 0.8 0.85 0.9 0.95 0.99

10 0.75 0.8 0.85 0.9 0.95 0.99

Yield 5.63% 10.74% 19.69% 34.87% 59.87% 90.44%

Apply Lean first, then Six Sigma.

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The Resistance to Change

• Change is uncomfortable

• We seem to have all the time in the world to rework it, but no time to eliminate the defect (do it right the first time

• If a manager will not get onboard, improve everything around them so their poor performance is obvious and the boss makes them comply.

• The best and worst day of my life (Dr. and Jon)

• The “Daddy Book”

• The risk of not having a plan — Pop

The first step toward change is the hardest.

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Idea Central is a web-based application designed to help organizations maximize the benefits from the creativity, expertise and knowledge of employees, customers, suppliers and other trusted third parties. The software contains specialized features to help focus idea generation towards strategic business objectives, and to capture, develop and share those ideas across an organization, in a secure manner. Idea Central also provides a state-of-the-art review process designed to elicit high quality insight and evaluations from decision makers, with minimum administrative overhead.

Contact Information:

• 332 Newbury Street2nd FloorBostonMA 02115sales@imaginatik.com

• Tel: + 1 866 917 2975Fax: +1 617 812 2695

About Ideation

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• Executive Sponsor Develops the Idea

• Capture Idea with Ideation Questionaire (helps to hone in or critical issues)

• Executive Challenge to employees involved through E-Mail containing:– The problem to be solved

– The link to the Ideation Portal

– Brief description of what an Ideation Event is (I will draft for your approval)

– The deadline of the Ideation Event (normally two weeks).

– Contain a High-Level Flow Chart (this depicts current process and scope and will reduce unrelated comments, suggestions and questions)

Getting Started

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• Employees suggest root causes and solutions–Ideation sends e-mails to all parties involved throughout process

and There’s a strong report mechanism.

• Other employees comment and rate the ideas

• Peer Reviews of root causes and associated solutions» Affinity Diagramming to assist reviewers see similar ideas

• Formal Reviews of root causes and solutions

• Reaching Conclusions with SME’s and Reviewers

• Choose the best ideasComplexity/Criticality Analysis

Getting Maximum Benefit from the event

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Conduct a Criticality/Complexity Analysis on the Ideas

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• In order to ensure a successful Lean Event, we need to perform the following Pre-event Steps:

–Fill-out a Project Charter –Identify an executive sponsor and champion.–Ensure SMEs and necessary management are available for the 3

day event (can make the decisions).–Ensure a room w/adequate support is available (internet &

computer overhead capable). –Ensure a report-out to Sr. management is pre-scheduled at the

end of the event. –Gather as much data (or have access to a database) relative to

the Xs (most significant failures). Conduct Gage R&R on the data if necessary to ensure data integrity.

–Collect benchmark data if possible.–Gather (or have access to) the Voice of the Customer (interview

internal & external customers).

Conducting Lean Events on high CC Ideas

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Lean Event Steps• Review all information together to gain understanding.• Use Lean methods to “get on the same page”.• Use QFD (House of Quality) to gather the requirements of the

process and ascertain the steps causing the greatest pain.• Review the current model - Walk the current process identifying:

rework, loops, bottlenecks, parallel steps, defects, excessive time and costs, manual effort, pushes, non-value-added: forms, approvals, steps.

• Discuss the relationship between Sigma Level, the number of steps and yield.

• Lean views steps from 3 perspectives: 1) Steps creating value as perceived by the customer; 2) Non-value added steps but necessary (regulatory, customer req, etc); 3) Non-Value added steps that should be eliminated, combined, reduced or converted to a 1 or 2.

• Do Pareto Chart on most costly steps, longest times, etc. and be prepared to spend your time on those parts of the New Model.

• Produce a Fishbone of largest issue to record causes.

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Lean Event Steps (Cont’d)

• Produce Value Stream Map depicting solutions and new times, costs, defects, etc.

• Automate steps as possible (Forced Control, Shutdown, Warning or Sensory Alert)

• Build in process check points and measures (who does it-what should be measured);

• Produce Cost Benefit Analysis of New Process• Reductions in measurement units w/new process;• What are barriers to new model and how to address them;• Assign tasks with names and dates• Report Out on New Model to Sr. Management. Get their input, make

assignments to close gaps, get approval.• Execute the plan, follow-up, report on status, close project and ensure

controls stay in place on the new process, improve process as necessary.• Review of Conclusions with Exec Management and Process Owners

• Put Fixes in Place

• Track Performance

• Improve areas needing improvement using Lean and/or Six Sigma tools

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Taking the First Step Toward Change

• Who moved that leg?

• The first step is the hardest — the 30’ hall

• The miracle walk

• The row across America

• Jon at USNA

• Challenge yourself and others to deploy improved processes using L6S tools.

• Don’t give up until the change is in place

• You have to crawl beforeyou can walk, run, or fly

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Backup SlidesAbout the Speaker

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Walking Through Adversity, Author Rob Bryant, Published by HCI

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A Few Endorsements

• Former First Lady Barbara Bush: “I am so glad to have this opportunity to send my warmest greetings and congratulations to Rob and Wanice Bryant. Rob's determination certainly is an enormous inspiration. George joins me in sending our very best wishes.”

• Governor Arnold Schwarzenegger, California: “Congratulations on your accomplishment of a cross country trip on a row-cycle. That was a monumental achievement, and I wish to congratulate you on both your mental and physical endurance. I deeply admire what you have done!”

• Tom Landry, Former Dallas Cowboys Head Coach: “Rob is a coach’s kind of guy, he never quits. Rob set two world records even though he is paralyzed from the waist down. He is a man of faith, and I am looking forward to walking with him in heaven some day.” (Quote from a network program which Tom Landry hosted.)

• Author and Speaker Zig Ziglar: “Rob Bryant is an effective speaker! He had our staff laughing one minute and crying the next. He is an inspirational man who, by example as well as a very effective presentation, is able to give encouragement and hope to those who have the privilege of listening to him. He will be a “hit” with your group. Rob’s message is timely and challenging — one that you will long remember. Rob has a champion’s heart and is an encouragement and inspiration to us all.”

• Author and Aerobics Authority Kenneth H. Cooper, M.D.: "Rob, I am overwhelmed by your accomplishment in the face of unbelievable obstacles! You are worthy of the highest praise for motivating millions of people to improve their health and fitness.”

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A Few Endorsements (Cont’d)

• Minister Joni Erickson Tada: “Rob believes that we should never give up! God has given us the ability to either accept our situation, or change it.“ (Quote from a broadcast)

• USA Today’s Ben Brown: “The next time you moan about 20 minutes on an exercise bike, think about Rob Bryant, a 35-year old aerospace engineer, who has just finished a four-month, 3,280 mile workout on an oar-equipped tricycle ... Though paralyzed from the waist down, he also pushed and pulled himself with crutches over 24 miles from Fort Worth to Dallas!“

• Former Senator Chuck Robb, Virginia: “Rob, it is with great pleasure that I congratulate you for holding two world records and am honored that I could greet you at the finish line at the Capitol. Congratulations to you and your family.“

• Former Governor William Donald Schaefer, Maryland: “It is with great pleasure that I congratulate you. This grueling journey, which more than tripled the previous world record, is an outstanding and inspirational achievement. I hope you are as proud of your Maryland roots as we are of you.“

• State Senator Roy Dyson, Maryland: “Mr. Speaker, I rise today to pay tribute to [Rob Bryant's employer] and to Rob Bryant. Rob Bryant has been a paraplegic since 1982 when he fell 55 feet from an oil rig. Despite his handicap, he has just completed a courageous 3,280 mile “Row Across America”. Mr. Speaker, it is both an honor and a pleasure to salute Rob Bryant today.“

• Former Congressman Pete Geren, Texas: “Mr. Speaker, strength and perseverance rolled into town this week in the heart of Rob Bryant. He has just completed a 3,280 mile journey from Los Angeles to Washington, DC on a hand propelled row cycle. Rob Bryant is an author and stands tall in our eyes. He is truly an inspiration to all of us.“

• Senator Kay Granger, Texas: “I commend you for your past and future accomplishments, your generosity, and for being the special person for whom we all have the greatest respect and admiration.“

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Business Accomplishments

• CSC Corporate Vice President for Quality

• Assisted DynCorp in increasing revenue from $900M to $2.1B in just four years as a direct report to the President

• Certified Six Sigma Master Black Belt Trainer; led over 100 teams and studies resulting in over $100M in savings/revenue/improvements for all divisions of CSC

• Malcolm Baldridge Sr., Examiner for the National MB Award for the Dept. of Commerce assessing quality for the President of the United States

• Served on the “President Bush Business Advisory Council” for two years

• Served as an editor for a book called Quality for Dummies and has written several published articles/papers for journals such as Quality Digest, Six Sigma Magazine, and others

• Quality Certifications include ISO-9001:2000, TQM, Process Management, ITIL, CMMI, Six Sigma Master Black Belt, Business Excellence, and Malcolm Baldridge

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Personal Accomplishments

• Published author of three non-fiction books and negotiating with literary agent on two more (a fiction thriller and fictional love stories)

• HCI (known for the Chicken Soup for the Soul series) has now released Bryant’s latest book, Walking Through Adversity

• Motivational speaker with lnternational Speakers Bureau (RobBryant.com); has spoken to over 500 business and civic organizations, churches, hospitals, universities, high schools, and many other groups

• Two world records — longest walk by paraplegic (24 miles); and rowing 3,280 miles on a row machine (Guinness Book of World Records, 1992-2000)

• Nominated for “Texas Businessman of the Year” by the Texas Republican Committee

• Nominated as a “National Republican Committee Honorary Chairman” and attended a dinner with President G.H. Bush in that capacity

• Past President of LeTourneau Alumni Association

• LeTourneau University Instructor — Principles of Self Management; Administration Theory and Practice; Strategic Management; Ethics and Entrepreneurship

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Experience. Results.