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Transcript of Lean Six Sigma Maturity Journey - Fisher College of … Six Sigma maturity... · Lean Six Sigma...
Lean Six Sigma Maturity Journey
Rick Guba
Executive in Residence
® All Rights reserved
2
Question:
What do you think of when you
hear the words “Lean Maturity”
Weight loss
program?Transformation
road map?
Getting
Older?
3
Misconception
• Its not about the tools…
• Its about the continuous
improvement journey.
4
Culture Change Flavor of the month EventsBenchmark other
Companies
DNA of the
Organization
Proactive Fire Fighting DFSSIT; Product Dev;
Marketing; HR
Strategy MaturingMaps, Goals
(Model lines)
Project Roll-up
(Hoshin Strategy)
Full Closed-Loop
(Full VSM linkage)
Software Excel Project Tracking Portfolio ManagementStrategy & Portfolio
Management
Reporting Anecdotal Measured StandardizedCross-organization,
Comparisons
Multi-year History
(Best in class)
Financial Impact Ad hoc Cost Reduction Consistency ValidationGeneral Ledger
Impact
Project Selection Burning Platform Low HangingModel lines & Value
Stream FocusIdea Pipeline Formalized Evaluation
PeopleDriven Few
(Green Belts)
More Believers
(Black Belts)
Career Development
(Master Black Belts)
Repatriated
(Internal Sensei)
Majority (fully
developed at all
levels)
Training Champion External External, Custom Internal, eLearning Internal, Specialty
Leadership 1 or 2 Visionaries Pockets of BelieversAcross Company
(Coaches)Expected (Mentors) Ingrained (Trainers)
Launch
Early Success
Scale
Replication
Institutionalization
Culture
TransformationA Lean Six Sigma Maturity Model
Adapted from The Six Sigma Maturity Model™ at www.isixsigma.com
5
Exercise:
• In groups discuss where your business in on
the maturity model.
• Define what you see that supports your
analysis.
• Describe what steps you from progressing to
the next Level.
10 min
6GE Aviation
A global provider of engines, systems and services
Segments• Commercial
• Military
• Business &General Aviation
7GE Aviation
Powering the world’s airline fleets
Every 2 seconds, a GE, CFM, EA powered airplane is taking off somewhere in the world
At any given moment, more than 2,200 of these aircraft are in-flight, carrying between 50 and 500 passengers
That's more than 300,000people... right now... who are depending on our engines
*CFM International is a 50/50 JV between GE and Snecma
EA is a 50/50 JV between GE and PW
Engine fleet: 25,9007
GE Aviation
8GE Aviation
Commercial engines
*CFM, CFM56 and the CFM Logo are trademarks of CFM International, a 50/50 joint company of Snecma and GE**GE-P&W Engine Alliance is a 50/50 joint venture with Pratt & Whitney
EMBRAER 170/175/190/195Bombardier CRJ200/700/900 COMAC ARJ21
Regional jetsCF34® family
Single AisleCFM56* family
Twin AisleCF6 familyGEnx
Jumbo Twin AisleCFM56, CF6/GEnxGP7200**, GE90
Turboshaft & TurbopropCT7/T700 family
Airbus A320Boeing 737
Boeing 787Airbus A300/310/330Boeing 767
Airbus A380Airbus A340-200/-300 Boeing 777Boeing 747
S 92EH101 Saab 340 IPTN CN235
COMAC C919
Global Supply Chain– Over 80 Sites– Culturally Diverse Workforce– Broad Spectrum of Processes
Culture Change Flavor of the month EventsBenchmark other
Companies
DNA of the
Organization
Proactive Fire Fighting DFSSIT; Product Dev;
Marketing; HR
Strategy MaturingMaps, Goals
(Model lines)
Project Roll-up
(Hoshin Strategy)
Full Closed-Loop
(Full VSM linkage)
Software Excel Project Tracking Portfolio ManagementStrategy & Portfolio
Management
Reporting Anecdotal Measured StandardizedCross-organization,
Comparisons
Multi-year History
(Best in class)
Financial Impact Ad hoc Cost Reduction Consistency ValidationGeneral Ledger
Impact
Project Selection Burning Platform Low HangingModel lines & Value
Stream FocusIdea Pipeline Formalized Evaluation
PeopleDriven Few
(Green Belts)
More Believers
(Black Belts)
Career Development
(Master Black Belts)
Repatriated
(Internal Sensei)
Majority (fully
developed at all
levels)
Training Champion External External, Custom Internal, eLearning Internal, Specialty
Leadership 1 or 2 Visionaries Pockets of BelieversAcross Company
(Coaches)Expected (Mentors) Ingrained (Trainers)
Launch
Early Success
Scale
Replication
Institutionalization
Culture
TransformationA Lean Six Sigma Maturity Model
Adapted from The Six Sigma Maturity Model™ at www.isixsigma.com
25 years of Process Thinkingat GE Aviation
11
Work-Out™ / Town Meetings:Empowerment, action – Expert-Driven Decision-Making, Action Work-Outs™, Customized Work-Outs™
Process Improvement / Continuous Improvement:Process-mapping, re-engineering, Bullet Train
1989
1992
1996
1998
2012
2005
2011
Change Acceleration Process (CAP):Increase success and accelerate change
2013
Lean Manufacturing:TPS, Inventory reduction, Visual Management
1995
Six Sigma :Productivity, Span, Data-Driven Decision-Making
Design For Six Sigma (DFSS):
DFR, DFP, Modeling
2014
ACFC (At the Customer For the Customer):
Faster, Better, Closer to the Customer
1991
2000
Lean + Six Sigma + CAPSpeed & Quality, Transactional Lean
GE Advantage Six Sigma, Lean, CAP, WO, DAWO
Lean Six Sigma 2.0:
Simple, Process Thinking, Blended
Simplification/Fast Works:
Streamlining, Iterative
SimpleanEverybody Every day Everywhere
• Using Change as a Strategic andCompetitive Advantage
• Optimizing Change Effectiveness
• Building a Culture that Leads throughEffective Change
GE Production SystemDid you Have good day
2015
12
Right Tool at the Right Time
Set of Tools to Help Us Improve Our Processes
People (CAP,
Facilitation)
Is the change obvious?
Do we simply need to
implement?Just do
it
Does the process
have visible wastes
or X’s identified?
Lean
Do we have variation?
Are the Problems'
hidden ?Six
Sigma
13
Aviation Six Sigma
GB BB-DMAIC BB-DFSS MBB
Training GB class BB-DMAIC classBB-DMAIC class & BB-
DFSS classBB-DMAIC class
Test Corporate GB test Corporate DMAIC testCorporate DMAIC &
DFSS testsCorporate DMAIC test
LDC N/A Complete 5 classes Complete 5 classes Complete 5 classes
Personal DMAIC Projects
(DMAIC projects may include Six Sigma and/or Lean methods)
Participate in or lead a DMAIC project
Complete 2 DMAIC projects. Both projects approved by BB Cert
Board)
Complete 2 projects (either 2 DFSS or 1 DFSS & 1 DMAIC)
Complete 2 DMAIC projects. Both projects approved by MBB Cert
Board unless previously approved by BB Cert Board during
BB tenure.
Deployment Strategy
N/A N/A N/A
LSS deployment strategy with evidence of results. Approved by
MBB Cert Board.
Mentoring Projects N/A 1 GB project 3 GB projects10 GB/BB/MBB
projects
Time on Job N/A 18 months 18 months 18 months
Project approval BB/MBB QL/MBB/Cert Board MBB QL
Cert Approval BB/MBB QL/Business Leader QL/Business Leader QL/Business Leader
Aviation BB only: Must also complete
1 week Facilitation Skills & CAP course
14
The
Accomplishments The Challenges
Common
Language
YesSi
Oui
Improvements
made
Leadership
Trained
Certification
Focus
Focus on
tracking #
projects
Waiting
for BB
15
Customer feed back
I don’t feel it
16
What is Lean?
“A manufacturing philosophy that shortens
the time line between the customer order
and the shipment by eliminating waste.”
- John ShookToyota’s first ( and still
only) American “Kacho”
(manager) in Japan
17
Lean Progression ……
Green Belt
Black Belt / Master Black Belt / Site Lean Leader
Dedicated Lean Leader
18
The
Accomplishments The Challenges
Identify
Waste
Kaizen
Teams
Flow
Lines
End FinishWeldEnd FinishWeldOrbital
Weld
Hydro TestMarkMech.Clean
TorchBraze
Mech.Clean
Flex
End FinishWeldEnd FinishWeldOrbital
Weld
Hydro TestMarkMech.Clean
TorchBraze
Mech.Clean
Flex
Management
Owned
Changes only
done in events
Worked old
ways in new
locations
19
Customer feed back
Better, but….
20
But improvements did not always sustain…
TIME
IMP
RO
VE
ME
NT
K
KK
K
K
K
K
K
K
S
S
S
S
K = Kaizen
Standardize
S = Stick
Sustain
21
Culture Change Flavor of the month EventsBenchmark other
Companies
DNA of the
Organization
Proactive Fire Fighting DFSSIT; Product Dev;
Marketing; HR
Strategy MaturingMaps, Goals
(Model lines)
Project Roll-up
(Hoshin Strategy)
Full Closed-Loop
(Full VSM linkage)
Software Excel Project Tracking Portfolio ManagementStrategy & Portfolio
Management
Reporting Anecdotal Measured StandardizedCross-organization,
Comparisons
Multi-year History
(Best in class)
Financial Impact Ad hoc Cost Reduction Consistency ValidationGeneral Ledger
Impact
Project Selection Burning Platform Low HangingModel lines & Value
Stream FocusIdea Pipeline Formalized Evaluation
PeopleDriven Few
(Green Belts)
More Believers
(Black Belts)
Career Development
(Master Black Belts)
Repatriated
(Internal Sensei)
Majority (fully
developed at all
levels)
Training Champion External External, Custom Internal, eLearning Internal, Specialty
Leadership 1 or 2 Visionaries Pockets of BelieversAcross Company
(Coaches)Expected (Mentors) Ingrained (Trainers)
Launch
Early Success
Scale
Replication
Institutionalization
Culture
TransformationA Lean Six Sigma Maturity Model
Adapted from The Six Sigma Maturity Model™ at www.isixsigma.com
GE – Aviation6/10/2016 Page 22
D M A I
C
Transition from “Running the Business”
to “Improving the Business”
Sisyphus and his Rock- Leader Standard Work
Results
Improve
Pressures
Force of
HabitManagement Standard Work
23
2016 Supply Chain Priorities
• Achieve product
cost targets
• Meet LEAP cost
curve
• Improve
inventory, P&E,
and accounts
payable
COST & CASHDELIVERY QUALITY PEOPLE
Creating the world’s best Supply Chain through
the GE Aviation Production System, Analytics, and Lean
Get the waste out Right the first time Working together
• Grow great teams
• Simplify
• Drive culture of
performance
development and
compliance
• Reduce customer
disruptions, MRBs,
and losses
• Improve process
capability
• On time for the
customer… period
Today & tomorrow
It starts with Leadership
Imagination at work.
Control Center DeploymentJanuary 22, 2015
Production System Implementation
GE Proprietary Information—Class III (Confidential)
Export Controlled—U.S. Government approval is required
prior to export from the U.S., re-export from a third
country, or release to a foreign national wherever located.
Operational Excellence
25
Create a world class lean
production system roadmap that
exceeds customer &
shareholder needs in safety,
quality, delivery, cost &
inventory.
CTQ
Control
Levels
Quality
Framework
GE Aviation Production
System
Operational
excellence
GE Aviation Production SystemThe standardized infrastructure that integrates our LSS &
Teaming best practices with our processes to design, produce,
distribute and service our products. It’s a roadmap that sites will
use to determine where they are and where they are headed
for the next 5-7 years.
Fundamentals
(Daily)
Strategic
(Weekly+)
Lean & Cont.
Improvement
Focus
GE Aviation
Production System
Control Centers
Layered Process Reviews
Ops Mgmt
Review
GE Aviation Production System3 Elements
Site
leadership
engagement
Did you have a
good day?
Measure maturity
of Operations,
Quality &
Control
One Company, One Standard, One Process
GE PROPRIETARY INFORMATION | 2015 26GE Aviation Production System
What we are
focusing on
this event
Control CentersFlexibility within a framework
Daily
Cell Control
Center
(CCC)
Daily
Production
Control Center
(PCC)
Weekly Plant
Business
Control Center
(BCC)
Plant leadership on the floor… solving day-to-day problems
Driving longer term metric trends & strategies
Cell management owned by team … drives
performance and sense of urgency
Visual flow of key metrics for safety, quality,
production, problem solving … escalation process
Total plant view … simplified focus on last 24
hours and next 24 hours: manage by exception!
Weekly review of metrics (QMI), longer term issue
resolution and continuous improvement
“Teaming”
“Prioritized action”
GEAPS
CCs
LPROMR
GE PROPRIETARY INFORMATION | 2015 27GE Aviation Production System
Information flowing up and
down org
Focus
Create Control Center Fundamentals
28
• Physical boards to see, “Did we have a good day?”• Cell performance: (last shift actual, current shift by hour)
• Plant production: Holistic view (Last 24 hours)
• Response culture when we have problems• Visual management to highlight problems
• Team developed and owned actions
• Escalation process
• Leadership owned actions
• Report back closed-loop
Control Centers
Cell Control
Center (CCC)
Production
Control Center
(PCC)
Business
Control Center
(BCC)
Teaming Daily metrics & prioritizing actions
Key Strategic actions & plans for
the year
Daily by Shift Daily Weekly
#2
#3
#4
Cell #1
Future
GEAPS
CCs
LPROMR
How do you know, “Did you have a good day?”
GE PROPRIETARY INFORMATION | 2015 29GE Aviation Production System
Cell Specific (CCC) Quality and Safety
30
Projects
w/ Escalation
tag
History of
location of
quality issues
Safety
Current month
customer felt
escapes
Year trend
customer felt
escapes
Cell
Current
month
recordable
Year trend
location of
injuries
Quality
Cell Year
trend
recordable
Red = Escape (QEM)
Yellow = On ship hold (evaluating
possible QEM) or open QEM
Green = no hold or QEMRed – recordable
Yellow - Injury
Issues
Issues
Cell Production (CCC)
31
Daily Unit
Completion by shift
with Issues TrackerRed = actual less then plan
Green = meets plan)
•Each peg color indicates
start date
•Colored bands indicate
planned cycle (takt time,
day, week,…). Highlights
Std WIP & throughput.
Value Stream MapClear to Start
• Std WIP
• Takt Time
• Output
• Daily part output and
movement through VSM
for one cell
Cell DelinquencyRed = over 1 week delinquent,
Green= less then 1 week
delinquent
Cell Projects (CCC)
32
Team
identified pipe
line of
projects or
issues
Projects
started)
Projects in
process
Projects
completed
and being
verified
Projects team
needs to do
something
different or
escalation for
additional
support
Mini A3 Format:
Individual problems are written
up by team and posted. As
project progresses, the cards
are updated and moved to each
folder
Plant Safety (PCC)
33
Top -Standard
Bottom – Site Creative
Current
Month
Cross Deep dive projects with
PDCA tracking
Past Month
Crosses
Site specific X’s• Safety walks
• 5S Audits
• Ect
MTD & YTD on
Near Missed, First Aids,
Recordables (Gensuite)Issues
Plant Quality (PCC)
34
Standard
Creative
Red = Escape (QEM)
Yellow = On ship hold (evaluating
possible QEM) or open QEM
Green = no hold or QEM
PDCA project
tracking
Day an escape was identified
MTD & YTD on Non-conform, Escape,
and Internal escapes
Root cause deep dive projects
Internal quality focus (site specific/flexible)
• # Non-conformances
• Aged NCR/MRB WIP
• # MRB
Year trend (by month)
Plant Production (PCC)
35Daily summary for 10 cells
Daily output
requirement
for cell
Actual output
for cellGreen = Met goal
Red = Under goal
Short term, tactical issues
to be completed within the
week.
Longer term items belong
on Project Board.
PDCA Tracking
Plant Delinquency, Input, Output & Inventory (PCC)
36
Inventory Input / Output ModelRed = input greater then output
Green = input same as or less then output
Delinquency ($, QMI Definition)
Red = greater then 1 week
Green = less than 1 week
CMRRed = holding up PO
Yellow = holding up assembly
Raw Material IssuesBlack Flag= Shortage holding CMR item
Red = Shortage holding up WO Start
Yellow = PO late to stock (charting, pareto,…)
PDCA project
tracking
Root cause deep dive projects
Plant Maintenance (PCC)
37
• Machine Down
• Schedule PMs
• Machine moves
• P&E Activity
• Issues
Plant C.I. Projects (PCC): long term
38Plant escalated actions
Red = late
Green= achieved daily output
Problem
OwnerDate projected
to be complete
PDCA
Tracking
GEAPS Layered Process Review Guide
39
GE Aviation
Production System
Control Centers
Layered Process Reviews
Ops Mgmt
Review
Site
leadership
engagement
Did you have a
good day?
Measure maturity
of Operations,
Quality &
Control
One Company, One Standard, One Process
Foundation of
the GEAPS
Purpose:• Drives Leadership
engagement in
areas not normally
visited
• Measure
performance of
production system
to ensure it is
working
• Ensures Quality
Framework is
working
• Enhances Operator
interaction
Layered Process Review (LPR)
40
GEAPS
CCs
LPROMR
Review Type • Area FW14 FW15 FW16 FW17 FW18 FW19 FW20 FW21 FW22 FW23 FW24 FW25 FW26 FW27
Plant Leader A • 1 F • 3 C • 5 F • 7 B • 9 D • 11 A • Multi E • 2 J • 4 I • 6 A • 8 F • 10 A • Multi F • 1
Business Leader B • 2 D • 4 F • 6 H • 8 J • 10 A • Multi C • 1 E • 3 G • 5 I • 7 B • 9 G • 11 F • Multi D • 2
Business Leader C • 3 H • 5 C • 7 H • 9 C • 11 H • Multi C • 2 H • 4 E • 6 B • 8 C • 10 A • Multi C • 1 H • 3
Quality Leader D • 4 I • 6 D • 8 I • 10 D • Multi I • 1 D • 3 I • 5 D • 7 I • 9 D • 11 I • Multi D • 2 I • 4
Materials Leader E • 5 J • 7 E • 9 J • 11 E • Multi J • 2 E • 4 J • 6 E • 8 J • 10 E • Multi J • 1 E • 3 J • 5
Engineering Leader F • 6 A • 8 F • 10 A • Multi F • 1 A • 3 F • 5 A • 7 F • 9 A • 11 F • Multi A • 2 F • 4 A • 6
Lean Leader G • 7 B • 9 G • 11 B • Multi G • 2 B • 4 G • 6 B • 8 G • 10 B • Multi G • 1 B • 3 G • 5 B • 7
EHS Leader H • 8 C • 10 H • Multi C • 1 H • 3 C • 5 H • 7 C • 9 H • 11 C • Multi H • 2 C • 4 H • 6 C • 8
Finance Leader I • 9 D • 11 I • Multi D • 2 I • 4 D • 6 I • 8 D • 10 I • Multi D • 1 I • 3 D • 5 I • 7 D • 9
Sourcing Leader J • 10 E • Multi J • 1 E • 3 J • 5 E • 7 J • 9 E • 11 J • Multi E • 2 J • 4 E • 6 J • 8 E • 10
Vendor Programs A • 11 F • Multi A • 2 F • 4 A • 6 F • 8 A • 10 F • Multi A • 1 F • 3 A • 5 F • 7 A • 9 F • 11
Customer Service B • Multi G • 1 B • 3 G • 5 B • 7 G • 9 B • 11 G • Multi B • 2 G • 4 B • 6 G • 8 B • 10 G • Multi
HR Leader C • Multi H • 2 C • 4 H • 6 C • 8 H • 10 C • Multi H • 1 C • 3 H • 5 C • 7 H • 9 C • 11 H • Multi
IT Leader D • 1 I • 3 D • 5 I • 7 D • 9 I • 11 D • Multi I • 2 D • 4 I • 6 D • 8 I • 10 D • Multi I • 1
Maintinence Leader E • 2 J • 4 E • 6 J • 8 E • 10 J • Multi E • 1 J • 3 E • 5 J • 7 E • 9 J • 11 E • Multi J • 2
Ontime Completion
G=>90, Y>80, R<7087% 93% 87% 73% 93% 93% % % % % % % % %
10Review Types Table
Team
Count 15 13Review Areas Table
*This list should have an odd number of areas
Rweview name Area
A 1
B 2
C 3
D 4
E 5
F 6
G 7
H 8
I 9
J 10
11
Deep Dives Multi
Muliti Cell Multi
Review Description Description
Cell Management (Deep Dive)
Required
Turbine Center Frame
Plant Management & PCC (Deep Dive) Hot Section
Mfg Quality (Deep dive) Combustors
Quality Framework Tubes & Ducts
QIP Execution Sumps & Seals
EHS (Deep Dive) Rotating
Nonconforming Material (Multi Cell)
Added by
Site
Chem Room
Gages (Multi Cell) FPI
Workstation Audit (Deep Dive) Metal Spray
Cell Management (Multi Cell) Shot Peen
Central Services
Random (2-5 Cells)
Random (2-5 Cells)
Red Slash / = reviewnot completed Yellow = Review completed late Green = Review completed on time
L a y e r e d P r o c e s s R e v i e w S c h e d u l e - ASCS
Template is available at GEAPS Colab
Rweview name
A
B
C
D
E
F
G
H
I
Quality Framework &QIP (Deep Dive) - Monthly
5S Review (Deep Dive)
Gages (Multi Cell)
Cell Management (Multi Cell)
Mfg Quality (Deep dive)
Review Description
Cell Management (Deep Dive)
Plant Management & PCC (Deep Dive)
Nonconforming Material (Multi Cell)
EHS (Deep Dive)
LPR Road Map
Site Quality or Lean leader
• Owns schedule (can use template)
• The SITE owns the Questions
• Some go deep
• Some go wide
• See all areas of plant
• Customize to fit your
organization’s needs
• Tracks % Reviews completed on time
Reviewers
• Site determines list of Reviewers
(should be lead staff at minimum)
• Own completing reviews
• Own updating CCC with findings
• Own escalating improvement actions
to PCC
• Own immediate action if appropriate
41
Area
1
2
3
4
5
6
7
8
9
10
11
12
Commercial Blade - One Force
Commercial Blade - Elite Fleet
Military Blade - Blade Runners
Comm Vane - AVanegers
Comm Vane - Team Tig/ Radial Grinders
C/S - Hot Zone, F/X Ready to Inspect, Codep
PCC Board
Quality Office
T700 S1 Vane - Innovators
T700 S2 Vane - Synergy
F414 Vane - 414 Vanes
LM Vane - Lminators
Description
GEAPS
CCs
LPROMR
Process
• Each leadership team member to complete 1 review per
week, per assignment matrix.
• Reviews should only take 10-15 minutes to complete.
• Action items to be added to CCC or PCC project list by
reviewer as appropriate.
• Review schedule to be posted at PCC and reviewers to mark
off reviews as complete.(Green out square when complete within week, yellow if late)
• Closure rate to be reviewed Monday at PCC review. (red if
missed)
• Completed reviews to be turned into Lean Leader.
• Lean Leader to analyze and review trends.
42
GE Aviation
Production System
Control Centers
Layered Process Reviews
Ops Mgmt
Review
GE Aviation Production System3 Elements
Site
leadership
engagement
Did you have a
good day?
Measure maturity
of Operations,
Quality &
Control
One Company, One Standard, One Process
GE PROPRIETARY INFORMATION | 2015 43GE Aviation Production System
Production
System Tour
Ops Management Review (OMR)
44
8 categories
5 elements per
category
100 available points
Detailed elements
45
The
Accomplishments The Challenges
Engagement
Multiple
Base hits
Common way in 87
shops to identify “did
you have a good day”
and get a response
New
behaviors of
leadership
Escalation
Process
Speed of
developing
change
agents
46
Before AWO
After AWO
Results
• 87% Lead Time Reduction
• 98% Internal Set Up Reduction
• 54% External Set up Reduction
• 54% Machining Reduction…Free
Capacity
• 92% Part Travel Reduction
Part Traveled 1713 ft.
Part Traveled 133 ft.
Product Flow Example...Creating a Bucket Cell
Bangor, Energy
Yes it works…
47
Insurance Example…RE Equity Release Process
P50 = 7d
Customer
• GE Life
• Estate
Surveyor
Inform
GE
7d
0s
C/T
P/T
L/T
Supplier
• Estate
• Executor
Agents Solicitor
Property
Access
&
Valuation
Appraisal
Agreed
Price
and
Agent
Approval Offer
Agreed
Approval Completion Approval
2d
2hr 20min
5d
20min
4hr
5min
1mth
5min
4hr
5min
5wk*
1hr
4hr
5min
P50 = 7d P50 = 2mth P50 = 10dP50 = 4hr P50 = 2mth P50 = 4hr P50 = 2mth P50
=
4hr
W
5 15 40
W W W
Finance
30
min
(10
m/w
k)
P50 = 7d
Customer
• GE Life
• Estate
Surveyor
Inform
GE
7d
0s
W
5
C/T
P/T
L/T
Supplier
• Estate
• Executor
Agents Solicitor
Reply Property
Access
&
Valuation
Appraisal
Agreed
Price
and
Agent
Approval Offer
Agreed
Approval Completion Approval
7d
2hr
2mth
20min
10d
20min
4hr
5min
2mth
5min
4hr
5min
2mth
1hr
4hr
5min
P50 = 7d P50 = 2mth P50 = 10d P50 = 4hr P50 = 2mth P50 = 4hr P50 = 2mth P50 =
4hr
W W W
I = Inventory
80 10 30 65
W W W W
Finance
40
min
(10m/
2wk)
30
min
(10m/
2wk)
30
min
(10m/
4wk)
5 min
(after
10d)Delay Delay Delay
21d notice
Delay
Before AWO
After AWO
Results
• Simplified Process
• Standardized Process
• 70% Cycle Red (27 to 8 wks)
• $15M Cash
• $2M Net Income
Yes it works…
48
61 $
77 $
86 $
100 $
65 $70 $
57 $ 55 $ 51 $
40
65
90
115
1996 1997 1998 1999 2000 2001 2002 2003 2004
Est
18.1
14.3
10.111.8
5.1 5.1
7.7
12.7
4
8
12
16
20
1997 1998 1999 2000 2001 2002 2003 2004
Est
4.0 $3.9 $
6.6 $ 6.0 $
12.0 $ 11.8 $
7.9 $
4.7 $
0
4
8
12
16
1997 1998 1999 2000 2001 2002 2003 2004
Est
1.0
2.31.8
4.83.84.3
6.5
7.8
10.1
0
4
8
12
1996 1997 1998 1999 2000 2001 2002 2003 2004
Est
Lean Leadership . . . Sustained Results
Accident Rate Inventory Balance
Cost Improvement Inventory Turns
Yes it works…
49
Customer
feed back
Team feed
back
We feel itI feel it
50
Lean as a foundation
51
Questions