Lean Operations, Six Sigma, & Lean Six Sigma Madhav Kasukurthi & Bill Ryan.
LEAN SIX SIGMA PRESENTATION TO CAMA
Transcript of LEAN SIX SIGMA PRESENTATION TO CAMA
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Murray JamerSaskatoon
LEAN SIX SIGMAPRESENTATION TO CAMA
May 29, 2012
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Overview
� Traditional ways to balance the municipal books
� Some of our proactive tools
� Lean Six Sigma
� Fredericton’s Lean Journey
� 5S – one of the Lean tools� 5S – one of the Lean tools
� Our plan:
� Our commitment:
� Council’s perspective
� Results to date:
� Questions
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Traditional ways to balance the municipal books
Leads to
Cut services • Dissatisfied customers• Doesn’t really address the issue of value for money
Defer infrastructure repairs • Bigger problems in the futureDefer infrastructure repairs • Bigger problems in the future• Doesn’t really address the issue of value for money
Raise taxes • Dissatisfied customers• Doesn’t really address the issue of value for money
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Some of our proactive tools:
� BPIs
� IT projects
� QMS (formerly ISO)
� Lean Six Sigma� Lean Six Sigma
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What is Lean Six Sigma?
Lean Sigma
� Improve System Efficiency
� Improve Flow and
Six Sigma
� Improve Process Effectiveness
� Reduce Variation� Improve Flow and Stability
� Eliminate Waste
� Method of Operation
� Focus on Value for Customer
� Reduce Variation
� Improve Yield
� Problem Solving Method
� Focus on Quality for Customer
We will use combination of Lean Sigma and Six Sigma
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Lean
� Focuses on maximizing the flow of value by eliminating waste
� Provides tools for analyzing process flow and the process flow and the identification of waste
� Centers on the separation of "value-added" from "non-value-added" work
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How is Lean different from Six Sigma?
Lean
� Waste Elimination
� Standard Work
� Customer Pull
Six Sigma
� Variation Reductions
� Rework Elimination
� Process Control� Customer Pull � Process Control
SPEED STABILITY & ACCURACY
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Common Types of Waste in Organizations
� Over Production -Producing more than what is needed
� Waiting - Downtime
� Transport - Items transferred from one location to another
� Motion – Poor Layout
� Extra Processing - Rework - Handling
� Defects – Defective items
� Excess Inventory
� Underutilization of staff
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Goals of Lean Sigma
� Lead Time
� Cost
� Rework Required
� Space
� Customer Responsiveness
� Capacity
� Employee Satisfaction
Flexibility – Demand Flux
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� Inventory
� Defects
� Flexibility – Demand FluxU
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Lean/Six Sigma is NOT:
� A Cost Cutting Exercise
� Job Cutting
� An easy thing to do
*
Although positions may be eliminated through
attrition or changed.*
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Lean-Sigma Overview
� Lean-Sigma is about creating a culture that demands continuous improvement and the pursuit of perfection�Gives employees the tools to:
1. Enable them to pinpoint performance gaps
2. Make the necessary improvements
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What about QMS?
� We still have QMS; not ISO
� QMS has provided:� Structure
� Documentation� Documentation
� A culture of continuous improvement
� QMS is a foundation for Lean Six Sigma
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Lean Six Sigma Organization in City (Our Improvement & Innovation Team)
City Council
City AdministratorMurray Jamer &
City AdministratorMurray Jamer &
Steering Committee
Finance Dept
I&I Team Members
Development Services Dept
I&I Team Members
Community Services Dept
I&I Team Members
Engineering & Public Works Dept
I&I Team Members
Corporate Services Dept
I&I Team Members
Police Dept
I&I Team Members
Fire Dept
I&I Team Members
Office of Continuous Improvement
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Our “Green Belt” Training
� e-z sigma
� 9 day course
� lots of home work
� exam� exam
� project
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Vision
We will improve the City’s internal andexternal services by making them moreefficient and better able to withstandscrutiny with the help of Improvement andscrutiny with the help of Improvement andInnovation teams using Lean Six Sigmatools and other change management tools, inorder to enhance continuous improvementwithin the framework of the City ofFredericton’s overall Management System.
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Objectives
Long-term (5-10 years)1. Every City service will have been the subject of an Improvement and
Innovation project, where trained team members will use newly acquired Lean Six Sigma techniques.
2. Every City employee will be familiar with the Lean Six Sigma principles.principles.
3. Every department will participate in Improvement and Innovation projects.
4. At least half (50%) of City employees will have participated on Improvement and Innovation projects where Lean Six Sigma techniques will be used.
5. 2 City staff will have Black Belt designation in Lean Six Sigma.
6. 10 City staff will have Green Belt designation in Lean Six Sigma.
7. Improvement and Innovation Projects (Lean Six Sigma projects) will have resulted in annual savings of $5,000,000.
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Objectives
Medium-term (3-5 years)1. Improvement and Innovation Teams, made up of staff from all
departments, will work on at least ten Improvement and Innovationprojects per year, where trained team members will use Lean Six Sigma techniques.
2. Every City employee will be familiar with Lean Six Sigma principles.2. Every City employee will be familiar with Lean Six Sigma principles.
3. Every department will participate in Improvement and Innovation projects.
4. 25% of City employees will have participated on Improvement and Innovation projects where Lean Six Sigma techniques are used.
5. 1 City staff will have Black Belt designation in Lean Six Sigma.
6. 6 City staff will have Green Belt designation in Lean Six Sigma.
7. Improvement and Innovation Projects (Lean Six Sigma projects) will have resulted in annual savings of $2,000,000.
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Objectives
Short-term (1-2 years)1. Improvement and Innovation Teams, made up of staff from each
department, will work on at least four Improvement and Innovationprojects per year, where trained team members will use newly acquired Lean Six Sigma techniques.
2. Every City employee will have been exposed to Lean Six Sigma 2. Every City employee will have been exposed to Lean Six Sigma principles.
3. Every department will participate in Improvement and Innovation projects.
4. 10% of City employees will have participated on Improvement and Innovation projects where Lean and Six Sigma techniques are used.
5. 1 City staff will have Black Belt designation in Lean Six Sigma.
6. 4 City staff will have Green Belt designation in Lean Six Sigma.
7. Improvement and Innovation Projects (Lean Six Sigma projects) will have resulted in annual savings of $500,000.
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A Lean Six Sigma Project
� Select a project
� Select team
� Define Phase
� Measure Phase� Measure Phase
� Analyze Phase
� Improve Phase
� Control Phase
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A Lean Six Sigma Project
� Similar to BPI
� Data is important
� Value Stream Mapping
� Current State� Current State
� Future State
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The 5S ProcessThe 5S Process
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What is 5S
� An easy definition is:
� A place for everything and everything in its place
5S is the foundation for Continual Improvement and � 5S is the foundation for Continual Improvement and Lean implementation� One tool in Lean Sigma
� Reduces time waste (waiting & searching)
� Reduces motion waste
� Increases operational efficiencies
� Helps increase value added time
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The 5S’s
English Japanese
� Sort Seiri
� Set In Order Seiton
Shine Seiso� Shine Seiso
� Standardize Seiketsu
� Sustain Shitsuke
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Before
After
(Set in Order)
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Traffic Warehouse
Before After
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Traffic Warehouse
Before After
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Traffic Warehouse
Before After
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Traffic Warehouse
Before After
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Traffic Warehouse
Before After
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Traffic Warehouse
Before After
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Before After
Property Services
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Before After
Property Services
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Before After
Property Services
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Before After
Property Services
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POLICE GARAGEPOLICE GARAGE
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POLICE GARAGEPOLICE GARAGE
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POLICE GARAGEPOLICE GARAGE
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POLICE GARAGEPOLICE GARAGE
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Regent Depot
Before After
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Regent Depot
Before After
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Regent Depot
Before After
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Regent Depot
Before After
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Regent Depot
Before After
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Fleet
Before After
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Fleet
Before After
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Water & Sewer
Before After
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Water & Sewer
Before After
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Water & Sewer
Before After
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Water & Sewer
Before After
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Water & Sewer
Before After
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Our plan:
� Make changes before we are asked to make changes
� Involve our staff
� Involve every department (cross departmental � Involve every department (cross departmental teams)
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Our commitment:
� No layoffs as a result of a Lean Six Sigma Project (staff savings through attrition)
� We will honestly measure results and cost savings
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Council’s perspective
� Didn’t like our previously proposed cuts
� Don’t want higher taxes
� Concerned about simply deferring infrastructure expendituresexpenditures
� Pleased we are trying Lean Six Sigma
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Results to date:
� 5S done in 7 workplaces
� Curbed requirement for more space
� Curbed requirement for more staff
� Established foundation for Lean Six Sigma Projects (and � Established foundation for Lean Six Sigma Projects (and staff reductions / other efficiencies?)
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Results to date:
� 2 major Lean Six Sigma Projects completed:
� Reduction of 2 FTEs
� Foundation for further reductions in FTEs
� 1 major HR project underway� 1 major HR project underway
� Several projects in initiation stage
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Summary
� Looks like this is a good methodology
� Our team in place
� Employees are motivated / engaged
� We are well underway� We are well underway
� Hard staff reduction targets?
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Questions