Introducing Lean Six Sigma 2014...

Introducing Lean Six Sigma

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“We don’t know what we don’t know. We can’t act on what we don’t know.

We won’t know until we search. We won’t search for what we don’t question. We don’t question what we don’t measure.

Hence, we just don’t know.”

- Dr. Mikel Harry (Six Sigma Co- Founder)

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⁻ Every company must improve its operations in order to survive and be profitable in the current economic and hypercompetitive market.

⁻ This is critical to delivering a high quality product/service at the lowest cost possible.

⁻ Today many companies looking at how they can deliver agile operations needed to both improve their performance and also support continuous improvement.

⁻ But, delivering this “change environment” has proven to be difficult

The Challenge:

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Product Cost, Pricing and Profitability

Pricing is largely determined by the Customer, so to remain profitable, organizations NEED TO REDUCE OR CONTROL COST

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Are You Confident in Your Cost-Cutting Scheme? For many companies, the challenge is to continually find ways to rebalance capacity to match demand and eliminate unnecessary operating cost in order to maintain or increase profitability. In trying to achieve this, some organizations have undertaken severemeasures such as: Undercut services. Across-the-board layoffs/ Down-sizing/

Rationalization. Outsourcing. Eliminate some features in our

Products/Services Employ sharp practices/cut corners. Consolidation. Closing operations 5

Traditional cost-cutting has its challenges …

Much of the cost-cutting tactics have come in the form of poorly planned, ad hoc measures.

Without careful analysis and understanding of the drivers of cost, the outcomes can be hit and miss. Some may do more harm than good by eroding customer loyalty, market share and brand perception through lower service levels, inattention to customer priorities and poor execution.

These mistakes might not show up as disasters, as some ad hoc cost-cutting measures yield some small savings. Yet organizations often miss 10 to 50 times the potential savings.

By succumbing to traditional cost-cutting tactics or copying the latest improvement fad, these tactics typically fail to build in flexibility and speed, which are critical capabilities in today’s dynamic markets.

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There is Need for Change An objective review of our performance over the years will show us there are things we would change given the chance(if we just knew exactly how):

- Things that would make life better for our Customers and ourselves;

- Things that would make us easy to do business with (competitive advantage)

High-performing companies excel in part because they execute day-to-day business processes better than their competitors.

Creating and defending operational advantage is both more important and more difficult to achieve than ever. It requires mastering repetitive processes that deliver value to customers, the organization itself and shareholders.

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Lean Six Sigma: A Viable Strategy!

Lean Six Sigma: the most effective methodology for

improving business and organizational performance.

It gives you the balancedapproach to improve profitability

and service quality!

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It Is A Robust Combination

- Lean is a way to do more with less while providing Customers with exactly what they want without accumulating unnecessary inventory

- Six Sigma is a disciplined, data-driven approach and methodology for eliminating defects in any process. It empowers us to have less than 4 defects in every 1,000,000 Opportunities!

With Lean Six Sigma, we are able to eliminate Waste (Cost of Poor Quality) embedded in our processes which makes up between 10% and 50% of our Operational costs.

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With Simple and Compelling Objectives

Benefits are:

1. High Quality Customer Focused Products/ Services

2. Superior & Consistent Customer Experience

3. Reduced Operating Costs

4. Increased Revenue and Market Share

5. Empowered, Motivated & Highly Proactive Staff

6. Improved Organization Goodwill & Reputation

Lean Six Sigma will help satisfy the explicit and implicit customer needs with the lowest consumption of resources by continuously eliminating:

Waste, Variability and Inflexibility!

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What is Lean?

Lean is employing minimum resources to realize maximum output and provide customers with exactlywhat they want (Value) without accumulating unnecessary inventory

It is simply doing More with Less

It is a systematic approach for identifying and eliminating waste (Muda) in a system through continuous improvement

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Lean Philosophy

The objective of Lean is to incorporate less effort, less inventory, less time to develop products, and less space in order to become highly responsive to actual customer demand and to produce high quality product/ service in the most timely, efficient and economical manner possible

Lean focusses on Value which is defined by the ultimate customer (from Customer view).

It is more than just Cost!

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Path To Lean

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SOME OF OUR ACTIVITIES ARE WASTE!

Waste

Value Enabling/ Incidental Activity

Value Added Activity

Split of our daily

work

WasteConsume resources but creates no value for the customer

Could be stopped and it would be invisible to the customer

Value Added ActivityTransforms or shapes material or information

Customer wants it

Done right the first time

Value Enabling Activity

No value created but required by current technology

No value created but required by current thinking

No value created but required by process limitations

No value created but required by current process

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Lean and WastesReducing Waste Drives Profits

Traditional Approach

Cost + Margin = Price

Oper.Cost

Margin

Oper.CostOper.

Cost

Margin

Margin

Lean Approach

Price - Cost = Margin

Oper.Cost

Margin

Oper.Cost

Margin

Oper.Cost

Our Past

Our Future

Co

st t

o C

ust

om

er

Margin

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8 Classic Types of Waste • Defects

• Overproduction

• Waiting

• Non utilized talent

• Transportation

• Inventory

• Motion

• Excess processing

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Defects• All processing required in creating a defect and the additional

work required to correct a defect or error.

• Defective or scrap materials

• Cost of inspecting defects

• Responding to customer complaints

• Rework or re-inspection of questionable materials

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Overproduction• Supplying the process with more than is needed to meet

order requirements, sooner and faster than it is needed, causes almost all other types of waste

• This is the worst waste of all, because it helps cause all the others

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Waiting• The excess time waiting for anything (people, signatures,

information, etc.)

• Waiting for decisions, instructions, approval, information, parts, maintenance, …

• Operator waiting for machines to run or cycle or Machine waiting for operator

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Non Utilized Skills/Talents

• PEOPLE’S SKILLS waste is a result of not placing people where they can (and will) use their knowledge, skills, and abilities to their fullest in providing value-added work and services.

• Employees are seen as a source of labor only, not seen as true process experts

• People are told what to do, and asked not to think

• Employees are not involved in finding solutions, opportunities to improve our process are missed

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Transportation• Excess movement of materials, documents, information, etc.

within an organization

• This movement adds no value to the customer/ end user and is often used to get the extra inventory out of the way

• Double or triple handling, moving in and out of storage areas and warehouses

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InventoryThis is excess piles of materials, parts, paperwork, computer files, supplies, etc.• Requires people, equipment and space to count, transport,

store and maintain it• If we do not get orders the material will become obsolete,

and be thrown away• Inventory is often used to help hide other wastes

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Motion

• Movement of people, material, products, and/or electronic exchanges that does not add value

• Walking without working (away from workstation)

• Searching for Information, Materials or tools,

• Reaching, bending or unnecessary motion due to poor housekeeping or workplace layout

• Company Process is not designed with employees in mind

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Excess or Over Processing• Putting more effort into the work than what is required

by internal or external customer.

• Doing more than is necessary to produce an effectively functioning product

• Extra setup steps, over-specification of the process, extra processing steps

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Sources of Waste

Work Area Layout Incapable/

Cumbersome processes

Poor maintenance Poor work methods Lack of training Lack of adherence Poor supervisory skills Inconsistent

performance measures

Ineffective scheduling Excessive controls No back-up/cross-training Unbalanced workload No decision rules No visual control Lack of workplace

organization Supplier quality

All of the Lean tools are designed to Identify amdRemove Waste!

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Six Sigma Philosophy

Six Sigma is a disciplined, data-driven approach and methodology for eliminating defects in any process.

It is the single most effective problem solving methodology for improving business and organizational performance.

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Let us Understand “X” in this journey to Improve on “Y”

Y

Dependent

Output

Effect

Symptom

Monitor

X1 . . . XN

Independent

Input-Process

Cause

Problem

Control

Six Sigma focusses on the X (causes) to improve or correct the behavior of the Y( problem )

f (X)Y=

The focus of Six Sigma

Six Sigma Employs DMAIC METHODOLOGY

DEFINE – describe the problem quantifiably and the underlying process to determine how performance will be measured

MEASURE – use measures or metrics to understand performance and the improvement opportunity

ANALYZE – identify the true root cause(s) of the underlying problem

IMPROVE – identify and test the best improvements that address the root causes

CONTROL – identify sustainment strategies that ensure process performance maintains the improved state 28

Problem Solving Steps: DMAIC METHODOLOGY

Let us draw an analogy of you reporting sick to the doctor and understand what DMAIC is all about

•The doctor says what brings you here , understands “what is happening to you”

•Looks for symptoms and asks to produce last prescriptions if any

•The doctor might use instruments like Stethoscope, thermometer etc. to measure pulse rate, temperature etc.

•Takes down notes

•May prescribe more tests like X-ray, Ultra Sound, Cat Scan to understand how various processes inside the body are behaving…now he knows root cause..!!

•Prescribes medicines for betterment or improvement

•Asks the patient to maintain a chart of Body output measure…eg.

Temperature, to reflect variation over a period of time.

•Asks the patient to revisit after one week

•May provide long term medication during revisit.

Define

Measure

Analyze

Improve

Control

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Is “Six Sigma” Overkill?

• 20,000 lost articles of mail per hour

• 15 minutes of unsafe drinking water each day

• 5,000 incorrect surgical operations per week

• 2 short or long landings at most major airports each day

• 11 hours of no electricity per month

• 7 lost articles of mail per hour

• 1 minute of unsafe drinking water per 7 months

• 1.7 incorrect surgical operations per week

• 1 short or long landing every 5 years

• 1 hour of no electricity every 34 years

99.99966% (6s)99% (≈3.8s)

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Lean and Six SigmaDifferentiation Lean Six Sigma

Primary Interest Remove Waste Reduce Variation

The way they look at the world

Flow/Waste Problem/Defect

Primary Effects Reduce waste and smooth flow Reduce variation to reduce defects

Secondary Effects Less inventory, fast throughput,better performance, more uniform output, less variation, improved quality

Improved quality, better performance, reduced waste, less inventory, faster throughput, uniform process output

Format Typically Kaizen event format. Concentrated resources in short timeframe

Project format. Resources spread over months

Scope and Scale Quick and initial gains, ongoingimprovements. Suitable for everyone and every part of the business

Complex problems that require in-depth analysis; Cross-functional. Specialists

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Lean Six Sigma Process Improvement

identifying and removing the causes of

defects (errors) and

variation

Identifying and removing

sources of waste within the process

Focusing on outputs that are critical to

customers

acceltage consulting [email protected] | 08022220341 , 08033204608

Lean and Six Sigma Tools for DMAIC METHODOLOGYP

has

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DefineSi

x Si

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& le

an T

oo

ls VOC , Kano , COPQ, Problem Statement, Develop Charter, Process Map,

TaktDemand, Production Plan,

Ou

tpu

t

Charter

SIPOC

Process Map



has

e

MeasureSi

x Si

gma

& le

an T

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CTQ’s , Source Data Validation,

Segmentation and stratification

Data Collection

Basic Statistics

Cause and Effect,

Value Stream,

Capability analysis, Time Study,

Ou

tpu

t

Data Collection on identified factors

Process Performance

identified major problem area



has

e Analyze

Six

Sigm

a &

lean

To

ols

Pareto, Fishbone, Cause & Effect Matrix, NGT,

5 why, Control Impact Matrix, Hypothesis Testing, ANOVA, FMEA, MultivariAnalysis, DOE, Process cycle, Setup Reduction, TOC Problem Tree

Ou

tpu

t

Identified probable causes ,

Root cause,

Vital and high impacting few causes



has

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ImproveSi

x Si

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& le

an T

oo

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Brainstorming, Optimization,

Pilot,

Automation, FMEA, ANOVA

DOE, 5S

Line Balancing

Kanban Pull, Single Piece Flow, SMED

Time & Motion Study, Kaizen

Ou

tpu

t

Best Solution

Systemic changes



has

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ControlSi

x Si

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& le

an T

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Dashboard, SPC Process Change/Work Instructions/ Procedure Change, Control Plan Process Audit, Visual Control

Standard Work, Pokayoke, 5 S, TPM

Takt Board, Kaizen Blitz

Ou

tpu

t Sustained Results/

Improvement


Voice of the CustomerVoice of the Customer (VOC)

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A term used in business process to describe the in-depth process of capturing a customer’s expectations, preferences, and aversions.

ORGANIZATIONAL BENEFITS:

Develops specific and measurable needs of the customer Provides a common language for the improvement team Provides input for new and innovative products and/or

services

CustomerWhat does my customer need

from our process?

How is our process performance from

the customer perspective?

How does my customer

measure my process?

How would my customer like for

our process to perform?

What can we do better?

How does my customer view

my process?

Gather Customer Need: Voice of the Customer (VOC)

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Insights into Customer Expectations

Solve my problem completely

Don’t waste my time

Provide exactly what I want

Deliver value where I want it

Supply value when I want it

Reduce the number of decisions I must to solve my problems

40acceltage consulting [email protected] | 08022220341 , 08033204608

Kano Model

There are 3 types of needs of a customer

• Basic Needs: Unspoken, taken For granted, Basic; Spoken If Not Met

• Performance Needs : Measurable Range of Fulfillment

• Excitement Needs : Unspoken Unexpected Unknown

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Basic Requirements

Excitement Requirements

Performance Requirements

Reversal Characteristics

Satisfaction

Dissatisfaction

SufficiencyInsufficiency

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• There are tremendous improvement and savings available to companies in their operations if they will mobilize their resources toward reduction of waste and improvement of quality

• Six Sigma requires Leadership from the Executive Staff

• The roadmap is clear and the methods for improvement are well defined

• Development of an implementation and training plan is the next step

More on Lean Six Sigma …

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Lean Six Sigma May Not Deliver Expected Results If…

1. Results are not aggregated; teams work in silos2. No Senior Management Commitment; efforts not tied to

corporate goals3. We Focus on the knowledge and not the application in

the Right Way and Order4. Lean Six Sigma efforts are applied on areas that will not

make a difference on the Organizational Bottom Line.5. We do not deploy the right resources and create the

deliberately enabling environment for success

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Six Sigma Certifications

Yellow Belt

Green Belt

Black Belt

Master Black Belt

Certification Bodies

American Society for Quality (ASQ)

International Association for Six Sigma Certifications (IASSC)

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How May We Help You?acceltage consultingoffers Customized Lean Six Sigma Training and Solutions for Organizations and Their Business Processes.

We can help your Business Maximize Value, Minimize Mistakes, Reduce Cost, Eliminate Waste, Do More With Less and Provide Customers With Exactly What They Want! 46

About Our Lean Six Sigma TrainingCOURSE AUDIENCE DESCRIPTION

Champions Training

Senior Management/Executives who will

support projects

2 Days (Lean Six Sigma Appreciation and Projects Identification/Selection)

White Belt Training

All Staff2 Days (Lean Six Sigma

Appreciation Class)

Yellow Belt Training

Process Owners/ Officers

3 Days (Participants will carry out Kaizen improvement projects on

their functions)

Green Belt Training

Process Improvement Team/ Change Agents

4 -5 Days (Participants will have a Lean Six Sigma Project to work on

with identified Champion)

Black Belt Training

Six Sigma Team Leads/Change Managers

2 Weeks (Participants will have a Lean Six Sigma Project to work on

with identified Champion)

All Courses are customized and facilitated in house at clients or acceltage facility47

About Our Lean Six Sigma Solutions

To Deliver Sustainable Results, We will focus on three areas:

1. Operating System: This involves the Configuration and Optimization of the Organization’s physical assets and resources to create value and minimize losses

2. Employee Mind-set & Behaviours: We understand that your employees are your greatest assets in the successful transformation of the Organization. To ensure that staff are aligned to our collective goals we will work on developing capabilities, fostering understanding and commitment, ensuring role modelling and aligning systems & structures.

3. Management Infrastructure: We will work on your structures, processes and systems to manage and optimise human and organisational resources in achieving our collective goals (Enhanced Performance Management System, KRA, Dashboards, Quality Control e.t.c.)

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Company Wide Lean Six Sigma Implementation; Our Approach:

The Process Improvement Team:

Critical to the success of the Lean Six Sigma implementation in our organization is involvement of process participants from strategic units of the company to form the Process Improvement Team. This has proven to be the best practice in all Successful Six Sigma Implementation.

These Employee will undergo the Lean Six Sigma Green Belt Program

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Our Approach (Contd.):

1. Diagnostic Phase (Define/Measure/Analyze):

Identify and Determine Requirements and Expectations from All Relevant Stakeholders

Perform Value Stream Mapping on the Strategic Units of the Company

Identify Projects and Select the Ones with the Highest Impacts

Conduct VOC, Determine CTQs/ COPQs, Sigma Level/ Process Capability

Map Processes (MIFA), Determine VAs, VEs, NVAs, SIPOC, Time & Motion

Collate , Validate and Segment Data

Analyze and Determine Root Causes

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Our Approach (Contd.):2. Design Phase (Improve):

Conduct Kaizen/ Brain Storm for all Possible Solutions

Apply the Lean Six Sigma Tools to Determine Ideal Solutions

Examine Workability of Solutions & Determine Alternatives

Envision The Ideal Process/ “Should Be”

Define Organizational Model That Would Align To proposed Improvement

Determine Technology Requirements/ Platforms

Assess Impact on the Business, Customers and Stakeholders

Prepare Justifications and Secure Management Approval

Establish Benchmarks and Define Success Metrics

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3. Deployment Phase (Improve):

Complete Detailed Design of Process and Organization

Communicate New Solutions to All Stakeholders

Develop and Implement Change Management Plan

Develop a Phased Implementation(Pilots)

Implement Quick Wins

Adjust Process Changes and Apply Kaizen

Develop a Training Plan and Train All Stakeholders on New Processes and Systems

Measure Progress and Communicate Results


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4. Control Phase (Control):

Continued monitoring and assessment of process changes

Apply Lean Six Sigma Tools for Control (SPC, Kaizen, PDCA e.t.c)

Redeployment and other value securing initiatives

Training and Capability building for all staff

Measure Progress & Deliver Impressive Results

Rollout Lean Six Sigma on All Identified Areas of the Strategic pillars

Enhanced Performance Management System

Reward System to Reinforce Process Changes

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Our Clients

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Wouldn’t You Rather Talk to Us, Before Your Competitors Do?

For detailed Lean Six Sigma training and Consulting proposal please contact:

abiodun adetula CSSBB, PMP, CQPA

T: 08033204608, 08022220341

E: [email protected]

Twitter: @acceltage

BB Pin: 25B3FBEA

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mailto:[email protected]

Introducing Lean Six Sigma 2014...

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