Presentation Name, Arial Regular 38 pt. · DMEDI Process Yes No No Yes Define Define Or Problem...
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24 October 2011 D. Scott Sink, Ph.D., P.E. Executive in Residence and Program Director, LeanSigma Certifications Integrated Systems Engineering The Ohio State University Integrated LeanSigma The Scoop on Certification and Industrial and Systems Engineering Webinar for IIE‘s Great Lakes Region
Transcript of Presentation Name, Arial Regular 38 pt. · DMEDI Process Yes No No Yes Define Define Or Problem...
24 October 2011
D. Scott Sink, Ph.D., P.E.
Executive in Residence and
Program Director, LeanSigma Certifications
Integrated Systems Engineering
The Ohio State University
Integrated LeanSigma
The Scoop on Certification and
Industrial and Systems Engineering
Webinar for IIE‘s Great Lakes Region
Agenda
I. Purpose, Objectives, Background
II. Key terms, concepts, constructs, questions, confusions
III. Value Add of the right certification to a BSISE
IV. Options, different paths, key issues to address
Q&A Throughout
Purpose/Objectives
Purpose: Address common, frequent questions and confusions around Lean
and Six Sigma Certifications.
Objectives:
1. Establish some solid operational definitions for things;
2. Explain difference between certificate and certification;
3. Detail out what is entailed in ‗best in class‘ certifications;
4. Answer questions real time, you write them, I see them, and answer
them, as appropriate as we go;
5. Make you aware of the upcoming 1-day IIE Session in Chicago on
Operational Excellence and ISE.
Scott‘s Salient Background
BS ISE Ohio State—1973
Management Systems Engineer, Eastman Kodak—1973-76
MS/PhD Interdisciplinary Program, Ohio State—1976-78
Oklahoma State—1978-1984
President, IIE, World Academy of Productivity Sciences and World Confederation of
Productivity Sciences—1990-2002 (Oslo, Stockholm, Istanbul, Hong Kong, Beijing,
Santiago, Edinburg)
Professor and Director of Quality and Productivity Centers at Oklahoma State and Virginia
Tech 1978-1997
− Navy, DoE, Ore-Ida Foods, Loblaw‘s, Hudson‘s Bay Company, Rhodia, South Africa, NASA, etc.
(By What Method after Deming Lathered them up)
− Virginia Senate Quality and Productivity Award (10 years of awesome benchmarking)
− 3 books, bunch of articles, tons of presentations that crystallized learnings (lot‘s of practice thinking
about this)
VP, Business Process Re-engineering, Exchange Solutions—2000-04
− Bank in Ireland, CGE&Y (reduction to practice in tough situations)
VP, Business Process Improvement, MDS—2004-07 (design and deploy to an
organization with no BPI culture or experience)
OSU—2007 to present
− LeanSigma Certification Program Director (in 5th year)
More Specific to this topic
From my first job at Kodak, I have been involved in introducing and figuring out
how to optimize the impact of ISE.
Extensive work with David Poirier at Loblaw Ltd., Hudson‘s Bay Company,
MDS, Noske Kaeser involving the development and deployment of ISE to grow,
improve, turn around organizations.
Extensive benchmarking from 1985 to present focused on Operational
Excellence, Quality and Productivity, Lean and Six Sigma, and ISE in general.
Involved in application of ISE to start-ups and re-engineering from 2000-2004.
Extensive involvement with LeanSigma Projects in the Columbus area in a wide
range of companies from 2007-present. Wide range of ‗ISE‘ type deployments
and impact, very few of the organizations even have ISE‘s .
Agenda
I. Purpose, Objectives, Background
II. Key terms, concepts, constructs, questions, confusions
III. Value Add of the right certification to a BSISE
IV. Options, different paths, key issues to address
Q&A Throughout
Cut to quick—if you aren‘t in a big
company with a program
1. In my view, getting an Integrated LeanSigma Certification is worth doing, will
pay off;
2. If you do it right.
3. Moresteam has outstanding curriculum, my point of view, easy to self study
and manage. BMG‘s material is outstanding also, albeit different learning
design. Frankly, I‘m not familiar with IIE‘s curriculum for certificate but I‘m
sure it is solid.
4. Finding the right ‗coach‘, MBB. I always took the professor and the course
not just the course. Do your homework on the instructor for course, if there is
one and for sure on your certification coach.
5. So, 4 implies that I do not recommend doing your ‗training‘ project (DMAIC)
on your own without a skilled DMAIC guide/coach. Good coaches are
findable and affordable.
6. Remember that this is about skill acquisition and sustainability, learn how to
be a cook first and then grow into a chef.
Terms, Concepts to Define
Operational Excellence, Business Process
Reengineering/Improvement/Management, Continuous Improvement,
Hoshin Kanri, ______ Production System
− What does a formal ―LeanSigma Program‖ look like
Integrated LeanSix Sigma—Training Basics
Certificate versus Certification
―Belts‖, levels of certification
Body of Knowledge and Requirements for each level
Certifcate vs. Certification
Buyer beware!
− Like a getting a pilot‘s license. (is in best in class but lots of not best in class
people would like to confuse you with the two terms to make money)
– Ground School, Exam, Certificate.
– Flight School with CFI: Skill Development and Demonstration (watch, co-do, do), Solo,
more skill acquisition and demonstration, CFI Final Tollgate, Certification/License.
− Certificate doesn‘t really mean anything nowadays because exams only prove
you know something.
− The CFI/‖MBB‖ (coach) and the training project(s) are the essence of a quality
certification. There are ‗rite of passage‘ processes and ‗real‘, best in class
processes where you really develop solid skill sets.
− Certification is the ‗booby‘ prize in a sense, if you really haven‘t learned how to do
DMAIC, can‘t replicate it successfully then it‘s just a piece of paper.
Belt Development
Line Management Ownership
Execution
White Belt for Leaders
Top management of the company
Understand fundamentals and potential of LS
Lead change
Support
Yellow Belt — LS Basic Tools
Trained on practical improvement techniques
Empowered to solve their own day-to-day problems
Members of Core Team for DMAIC and/or WO/KE
BPI
Deliver training for MDS
Coach BB‘s
Lead complex ―umbrella‖ projects
Full-time
Trained on entire LS tool kit
Lead, facilitate, train and coach project teams
Full-time
Trained on foundational LS tools
Participate in Black Belt teams or lead projects
Work on day-to-day improvements
Part-time
Master Black Belt Black Belt Green Belt
Sponsor
VSO/PO
Monitor project progress
Capture and sustain benefits
LeanSigma WO/KE facilitation
Observe, Co-facilitate, Facilitate and be observed model
Coaching
Workout & Kaizen Leader
Advanced LeanSigma concepts
Advanced ‗other four disciplines‘
Observed teaching for GB and BB training
Coaching
Master Black Belt
LeanSigma Curriculum
LeanSigma E-learning (BB--139 hrs; GB—91 hrs)
BB (3 Reduction to Practice—RTP Weeks + 10 Study Days)
GB (2 RTP weeks + 8-10 Study Days)
On-site coaching
Black Belt Green Belt
Initial Orientation incl. simulation experience (1-day)
OJT exposure during Core Team activiies
20-hour E-learning with coaching available
Yellow Belt — LS Basic Tools
Leaders OE/LS introduction (2 days)
Extended YB training available via blended model (~ 20 hours of E-learning)
Project sponsor training for VSO‘s and PO‘s 1-day initial workshop
Builds on WB foundation
Focuses on Sponsor role/ responsibility
Develop actual Opportunity Scoping Documents
Business Leader (WBL)
Sponsor (VSO/PO)
LS DDT
WB foundation
DDT quarterly get togethers
Project identification and selection (1-day initial plus ongoing)
BPI ongoing coaching and support
Bi-monthly ‗rounds‘ from BPI
Benchmarking reports from BPI
General Employee Orientation/Awareness
Belts and e-learning delivered
100%
White Belt
Top 340 leaders
sustain all Manager level and above
Black Belt (~ 1%)
Green Belt (~4-10%)
Yellow Belt (~50%)
Full Potential (2007-2009)
Improving existing processes using LS DMAIC methodology
3-5 months
Fix the process leading to fix the system
Reduction of ‗waste‘, lead time, defects, cost.
Evolution of OE/LeanSigma Curriculum
Start-up Deployment (2005-2006)
LeanSigma ― DMAIC
Corporate-wide training
LeanSigma--Workouts and Kaizen Events
Improve existing processes using LS WO/KE methodologies
start with VS Workouts
1-2 months elapsed time
focus on applying basic process improvement methods and tools with heavy employee involvement
Design for LeanSigma (DFLS)
Apply LeanSigma tools
when developing new
processes and products
New product development
Process Re-engineering
New process for potential
start-up
Participate in/Observe 1 WO and KE
Co-lead/facilitate 1 WO and KE
Lead (full cycle) with MBB observation 1 WO and KE
Pass WO/KE exam
Final Report submitted
Oral Defense
Must do 2 WO‘s per year and 4 KE‘s to sustain certification
Workout & Kaizen Leader
Certified Black Belt
Advanced 5th Discipline
Observed teaching for GB and BB training
Active and ongoing Coaching of 10+ G/BB‘s,
1 + major project per year
Master Black Belt
Certification Process Guidelines
Complete the course of study
Pass the curriculum exam
Successfully complete 2 projects
Gain certification as a WOKE Leader (E)
Pass the ‗final tollgate‘ on both projects
Coach (with MBB supervision) 5 GB projects
Write and submit ‗final tollgate reports‘
Final Exam and Oral Defense
2-5 projects/year (that get to R)
Oversee 3-9 GB‘s/Projects
Black Belt
Complete course of study (20 hrs. E-learning)
Participate/contribute in WOKE‘s and DMAIC Projects
Pass exam
Yellow Belt
Complete the course of study (R)
Pass the curriculum exam (R)
Successfully complete 1 project (R)
Do a second project w/I 2-4 mos. of completing the first (R)
Gain certification as a WO/KE Leader (E)
Pass the ‗final tollgate‘ on the project (R)
Write and submit ‗final tollgate report‘ (R)
Final Exam and Oral Defense (R)
Must do 1-2 projects/year to sustain certification (R)
Green Belt
Terms, Concepts to Define
Operational Excellence, Business Process
Reengineering/Improvement/Management, Continuous Improvement,
Hoshin Kanri, ______ Production System
− What does a formal ―LeanSigma Program‖ look like
Integrated LeanSix Sigma—Training Basics
Certificate versus Certification
―Belts‖, levels of certification
Body of Knowledge and Requirements for each level, how the training works
Lean Sigma Foundations CHALLENGE: where to draw the line
on the ‗diagonal‘
ISE 685
ISE 680LS
Lean Sigma Foundations Your course learning resources
+
+
Black Belt Curriculum:
$300 (will use this for
3+ quarters)
~$15
~$15
~$50
~$40, Visio can be
Used but you will not
Gain full understanding
Of Value Stream Mapping Tools
~$50-100 and
In Labs
~$16
In ISE
Computer
Lab plus MS has
an Excel lite
template
It‘s obvious that the Certification Process is
designed to get you skillful at DMAIC
Process Or
Product?
Does
Process
Exist?
Measure
Analyze
Improve
Control
Goals
achieved with
existing
process?
Measure
Explore
Develop
Implement
Classic DMAIC DMEDI
Process
Yes No
No
Yes
Define
Define
Development
Or Problem
Solving?
Identify
Design
Optimize
Validate
Measure
Analyze
Improve
Control
IDOV Augmented DMAIC
Product
Development Problem
Solving
Tools,
Toll gate
content,
etc.
Goals
achieved
with existing
design?
No
Yes
(System, subsystem or part)
Tools,
content,
etc.
Define
Lean Sigma Foundations
ET –D-M LS Roadmap
MoreSteam–
D-M LS
Roadmap
Our Green
belts in
training
(potentially)
MDS– Define
Document
We need
some
roadmap 5S!!
Moresteam
Define Charter
Rath&StrongL
S Roadmap
Measure
• Operational
Definitions
• Measurement &
Analysis Plan
• Pareto Chart
• Histogram
• Box Plot
• Statistical
Sampling
• Measurement
System Analysis
• Setup Reduction
• Generic Pull
• Kaizen
• Control Charts
• Process Capability,
Cp & Cpk
Analyze
• DOE Full & Fractional
Factorial
• Conjoint Analysis
• Response Surface
Methodology
• Taguchi
• Scorecards
• Pareto Charts
• C&E Matrix
• Fishbone Diagrams
• Brainstorming
• Supply Chain
Accelerator Analysis
• Non Value-Added
Analysis
• Hypothesis Testing
• Confidence Intervals
• FMEA
• Simple & Multiple
Regression
• ANOVA
• Queuing Theory
• Analytical Batch Size
Improve
• Brainstorming
• Benchmarking
• Process Improvement
Techniques
• Line Balancing
• Process Flow
Improvement
• Constraint Identification
• Replenishment Pull
• Sales & Operations
Planning
• Poka-Yoke
• FMEA
• Pugh Matrix
• TRIZ
• ‗To-Be‘ Process Maps
• Human Factors
• Piloting and
Simulation
Control/
REALIZE
• Control Charts
• Standard
Operating
Procedures
(SOP‘s) Standard
Work
• Training Plan
• Communication
Plan
• Control Plan
• Visual Process
Control
• Mistake-Proofing
• Process Control
Plans
• Project
Replication
• Business Case
Realization
* Tool Array, based on LSS for
Service by Michael George
• Value Stream Map
• Various Financial
Analysis
• Charter Form
• Multi-Generational
Plan
• Stakeholder
Analysis
• Communication
Plan
• SIPOC Map
• High-Level
Process Map
• Non-Value Added
Analysis
• VOC and Kano
Analysis
• QFD
• Pareto Charts
• RACI & Quad
Charts
SELECT/
Define
UG ISE is the perfect place and perfect timing to get that first certification because
the prerequisites are all in place!! Stat 427-8; ISE 510 & 610; ISE 540, 541, 542; ISE 501, 520, 521;
Accounting 501 & ISE 504; ISE 681; ISE 560 & 670 (many, many HFE aspects in projects) w/ ISE 685
24 October 2011 20
Shortest version of what Lean and Sigma are
and why we combine them
Days to delivery
Nu
mb
er
of d
eliv
erie
s
Average = 5 days
Large variation
Days to delivery
Nu
mb
er
of d
eliv
erie
s
0 10
Average = 5 days
Small variation
Six Sigma alone
Days to delivery
Nu
mb
er
of d
eliv
erie
s
0 10
Average = 3 days
Large variation
Lean alone
Days to deliveryN
um
be
r o
f d
eliv
erie
s0 10
Average = 3 days
Small variation
LeanSigma
Lean Sigma Foundations Fundamental Construct in
LeanSigma
If we are so good at X, why do we constantly test and inspect Y?
• Y
• Dependent
• Defect
• Effect
• Key Process Outcome
• Monitor
• X1 . . . XN
• Independent
• Root Cause
• Key Lever or Process Variable
• Control
To get results, should we focus our behavior on the Y or X?
f(X) Y=
LeanSigma requires a shift toward more discipline managing the X’s
Lean Sigma Foundations Managing the Causal Connections to
Improve Enterprise Value
• Process Y’s
• Dependent
• Defect
• Effect
• Key Process Outcome
• Best in Class Process Capability
• Monitor
• X1 . . . XN
• Independent
• Root Cause
• Driver
• Key Lever or Process Variable
• Control
To get the sustainable results we want we measure and manage the X’s which Drive
the Process Y’s which Drive the Business Y’s
X’s Process
Y’s Business
Y’s
• Growth of Franchise Value
• Positioning
• Blended Growth Rate
• Best in Class Cost Structure
• Investor Satisfaction
• Employee Value Exchange
• Customer Success
How do we Translate & Measure This?
Customer
Y’s
Lean Sigma Foundations Program
Initialization
Engage
the
‘Right’
People
Pick the
Right
Projects
Best in
Class
Training
Discipline
around
Methodology
Celebrate
Successes to get
the ‘fly wheel’
spinning
Enhanced Training Model Traditional Training Models
E-Learning / Self Paced learning
modules with reduction to practice
workshops built in while belt works on a
DMAIC project
Traditional model (Train-Do) of in-
class training followed by work on the
DMAIC project
D M&A I&C
3 wks In-Class Training
Project Work
R D M A I C
Cheaper,
Better, Faster
I/
R
Lean Sigma Foundations
Your Final Tollgate
should occur about here
Class 3B Planned Blended Training Schedule (LS
Knowledge/Skill Acquisition)
1/26/2007 2/15/2008
2/1/2007 3/1/2007 4/1/2007 5/1/2007 6/1/2007 7/1/2007 8/1/2007 9/1/2007 10/1/2007 11/1/2007 12/1/2007 1/1/2008 2/1/2008
2/15/2007
KickoffWave 2b
2/15/2007
Training DaySession 1 & 2
Define
2/28/2007
Training DaySession 3
Define
3/7/2007
Training DaySession 4
Measure
3/13/2007
Training DaySession 5
Measure II
4/4/2007
Training DaySession 6
Analyze 1
4/11/2007
Training DaySession 7
Analyze II
5/14/2007
RTP Week 2(Reduction to Practice)
4/12/2007
P&P #25/16/2007
P&P #3
6/13/2007
P&P #4
6/15/2007
Complete 4 hr Exam
q Lean Simulation
q SPC Simulation
q Process Capability Simulation
q Value Stream Mapping Simulation
q D-M-A Roadmap Project Workshops
q Graphical & Statistical Analysis (student data)
q Intro to Inferential Statistics
q Homework
q Science Fair (Project Round Robins)
q Other 4 Discipline Exercises
q Teach 2 Learn Exercise
q ―Fishbowl‖ P&P with previous classes
q DOE (MAIC) Simulation
q Future State Mapping & Solution Elements
q Flow – Little's Law
q Case Study -Future State
q A-I/C-I-R Roadmap Project Workshops
q Reinforce & Practice- Inferential Statistics
q Homework
q Science Fair Presentations & Rating
q Project Round Robins
q Other 4 Discipline Exercises
q ―Fishbowl‖ P&P with previous classes
q Case Studies – MDS Belts
4/18/2007
Training DaySession 8
Analyze III (DOE)
5/17/2007
Training DaySession 10
Control
5/16/2007
Training DaySession 9
Improve
3/18/2007
RTP Week 1(Reduction to Practice)
3/26/2007
P&P #17/12/2007
P&P #5
8/9/2007
P&P #7
9/13/2007
P&P #8
10/18/2007
P&P #9
11/15/2007
P&P #10
12/13/2007
P&P #10
Right pace is: 1—Exam done by 25 April, 2—I/C
Tollgate completed by 11 May (t+20); 3—Project #2
is scoped for you; 4—Quick Wins are underway;
5—Implementation is begun
t0
Dec ‗06
Sessions 1-6
Training Days
April ‗06 May ‗06
Learning
Front
t+6
Feb ‗06
Project
Front PROJECT #1 WORK
t+14
GB Exam
June ‗06
RTP
Wk 1
t+24 t+20 t+41
Implementation Realization
Final
Tollgat
e
Final
Oral
Exam
PROJECT #2
Sessions
4-7 TD‘s
RTP
Wk 2
Final
Repo
rt
Final
Repo
rt
Final
Repo
rt
Fa ‗07
Certification
Sessions
7-10
D M
A I/C
Impl. & Real.
Kick-off Training 6 Dec
2 Feb RTP week
1 completed
26 March P&P
Review #2
Final Report started and in
ET!!
30 March RTP week 2 completed
Ideal/ Standard Train Do Process
Schedule
27-28 Feb P&P Review #1
25 April P&P
Review #3
Post RTP Coaching and
P&P Reviews
25 April Training
Complete
Program
Initialization
Engage
the
‗Right‘
People
Pick the
Right
Projects
Best in
Class
Training
Discipline
around
Methodology
Celebrate
Successes to
get the ‗fly
wheel‘ spinning
MDS Benchmark Exchange 26
Leadership Critical in Every Aspect
R = P * Q * A
P = Projects Selected
R = Results
Q = Quality of Solution
t = Cycle Time
A = Acceptance /
Sustainability
t
Adapted from: Making Six Sigma
Last by George Eckes
Lean Sigma Foundations We are integrating LeanSigma & the Four
Disciplines (read Senge’s Learning Org article and
get Fifth Discipline!!)
Training integrates Change Management & Project Management skills and
techniques along with technical training on Lean & Six Sigma.
Program
Initialization
Engage
the
‘Right’
People
Best in
Class
Training
Pick the
Right
Projects
Discipline
around
Methodology
Celebrate
Successes to get
the ‘fly wheel’
spinning
Peter
Senge’s
The 5th
Discipline
Greatness is a lot about disciplined people (thought,
word, deed)
Disciplined about what?
Systems & Statistical Thinking
(LeanSigma)
Personal Mastery
Mental Models
Creation
Skillful
Team Learning
24 October 2011 12-13 December Montreal 28
Theory, Principles, Concepts Understand the principles, the possibilities, the benefits, the
theory, the organizing concepts,
Operational Definitions Call things by their right names; have definitions we can
do business with; precision of language and consistency
Levels of Knowledge and Skill we are creating in
our various types of ‗belts‘
Method Understand the method by which to achieve process
improvement; have seen it done or done it at least once.
Artful, Skill Have done it many, many times; in ‗flow‘
with it; benchmarked to best in class;
Mastery Can Teach it, Can Improve it,
Wh
ite B
elt
Ye
llow
Be
lt
Gre
en
Belt
Bla
ck B
elt
Ma
ste
r Bla
ck
Be
lt
340 ~500
68 14
4
BOK‘s and Standards
http://asq.org/certification/six-sigma/bok.html
http://fisher.osu.edu/centers/coe/lean-six-sigma-black-belt-certification-
standards/
http://www.moresteam.com/master-black-belt.cfm
https://fisher.osu.edu/executive-education/open-enrollment-
programs/operations-and-information-technology/six-sigma-black-belt-web-
leveraged/
http://www.iienet2.org/IIETrainingCenter/Details.aspx?grp=ICP (note, at this
point IIE only has certificate programs)
http://www.iienet2.org/IIETrainingCenter/Details.aspx?EventCode=ASQ (IIE
does have a preparation for certification program for GB)
Terms, Concepts to Define
Operational Excellence, Business Process
Reengineering/Improvement/Management, Continuous Improvement,
Hoshin Kanri, ______ Production System
− What does a formal ―LeanSigma Program‖ look like
Integrated LeanSix Sigma—Training Basics
Certificate versus Certification
―Belts‖, levels of certification
Body of Knowledge and Requirements for each level
Enhanced Behavior
1.0
Ideal
27x
Increased Geog. / Segment Scope
Greater Longevity
Number of Customer Relationships
Average Customer
Relationship Profitability
Per Year
Average Customer
Relationship Duration
1x
0.2x
Growing Franchise Value
1.0
Ideal
1.0 Ideal
Increase
Franchise Potential
Domain, Offerings,
Value Proposition,
Geographic Coverage,
Segments Served
Optimize
Relationship Investments (Appropriate / Adequate /
Efficient / Effective)
Value Exchange
Management
Improve
Investment Delivery (Flexibility /
Cost / Quality)
Productivity, Efficiency,
Quality
Franchise Value Improvement Critical
Levers
1x
POSITIONING STRATEGY RESOURCE ALLOCATION EXECUTION
50x
10x
25x
Operational Effectiveness Operational Efficiency
Lean Sigma Foundations Sustainable Operations Excellence—
Enterprise Level View
Process Management System
Introducing Disciplined Management
Processes
Outcomes Process
Weekly EMT teleconferences
Monthly business reviews
Disciplined annual plans
Action oriented decision making
Tighter accountability
Customer responsive
Business Performance Reviews
Better understanding of ―A‖
performers; enriched career path
Expansion of variable compensation
opportunity
Alignment of shareholder and
management incentives
Biannual talent reviews
New executive compensation plan
Talent Management
Lean Sigma toolkit
Green Belt/Black Belt team
development
Lean process initiatives underway
Standard approach across MDS
Building process and cost efficiency
orientation
Simplify processes
Customer responsive
Operational Excellence
Customer/ Competition/ Capital
Business unit/Corporate strategy
Detailed industry analysis
Customer value led process
Longer range growth agenda
Focused R&D investments
Capital matched to growth
Program
Initialization &
Infrastructure
Engage
the
‗Right‘
People
Best in
Class
Training
Pick the
Right
Projects
Discipline
around
Methodology
Celebrate
Successes to
get the ‗fly
wheel‘ spinning
Program Design, Startup &
Development
E- Handbook:
LeanSigma Policies & Guidance
EnterpriseTrack:
Program and Project Tracking
Dep
loy
men
t L
ead
ers
rep
resen
tin
g
each
Bu
sin
ess U
nit
& F
un
cti
on
Lean P
ilots
Learn
ings &
Results
Source External LeanSigma
Expertise (BMG and
MoreSteam)
Curriculum Foundation
Control Documents
MDS Benchmark Exchange 36
Business Challenges We All Face
Maximize customer value
Create growth opportunities
Reduce costs
Increase productivity
Improve employee development,
motivation and engagement
The critical challenge:
How to accomplish all in
a sustainable way
MDS Benchmark Exchange 37
Meeting These Challenges –
Why Xerox Lean Six Sigma?
Helps us understand what
customers truly value and need
Enables growth opportunities,
while reducing costs
Improves processes through
fact-based, disciplined
decision-making
Delivers more robust designs
Develops future leaders
Transforms our culture
It‘s becoming ―the way we work‖
MDS Benchmark Exchange 38
Goal – Reduce waste and
increase process speed
Focus – Identify non-value add
steps and causes of delay
Method – Value Stream Tools,
Kaizen events
Lean Speed + Low Cost
Goal – Improve performance on
customer CTQs (Critical To Quality)
Focus – Use DMAIC process with
various tools to eliminate variation
Method – Leadership engagement,
1% - 3% dedicated as Black Belts
and Deployment Champions
Six Sigma Culture + Quality
Six Sigma QUALITY Enables Lean Speed
Lean SPEED Enables
Six Sigma Quality
Xerox Lean Six Sigma - Combining two
powerful approaches
MDS Benchmark Exchange 39
Leadership Makes All the Difference!
Willingness to
commit time and
deploy required
resources
A Burning
Platform Clear business need
or belief it can be
better!
Belief in the
Solution Is Lean Six Sigma the
right strategy to help?
+
Customer Value and
Business Results
MDS Benchmark Exchange 40
Enterprise-wide Deployment
Sales and
Marketing
Xerox Worldwide
Administration
Information
Technologies
Facilities
Customer
Communications
Operations
Finance
Manufacturing Engineering
Human Resources
Our view: Not just a tool for operational efficiency, but an
enterprise-wide business strategy for creating real value
MDS Benchmark Exchange 41
At Xerox Our Commitment Starts at the Top.
―I‘m convinced that Xerox Lean Six
Sigma is a way to rebuild value in
our company because it is about
substance, not form; it‘s about
discipline and infrastructure so
projects can produce business
results.‖
—Anne Mulcahy
Chairman & CEO
Leadership Alignment & Support
Infrastructure in place
BPI Core Team LeanSigma Architecture and
Engineering
Lean-Sigma Administrative
Coordinator
President MDS
Diagnostic Services
President MDS Sciex
President MDS Pharma
Services
President MDS
Nordion
Master Black Belt Support—Training,
Coaching
Program & Project Management Support
CFO
MDS
CIO
MDS
EVP
Org. Dynamics
Subject Matter Expertise Support
CEO & President MDS
LeanSigma Deployment Leaders
and Managers
Value Stream Owners/Managers & Process
Owners (Champions)
‗Belts‘
Core Teams
Executive
Sponsors
SM
E‘s
(Fin
ance , IT
, HR
, RE
F,
SC
M, R
eg
ula
tory
Re
p‘s
)
Program
Initialization
Engage
the
‗Right‘
People
Best in
Class
Training
Pick the
Right
Projects
Discipline
around
Methodology
Celebrate
Successes to
get the ‗fly
wheel‘ spinning
1) Pick the right belts and 2) surround them
with the support requirements they need to be successful.
Selecting the Right Belts Process
Map
Program
Initialization
Engage
the
‗Right‘
People
Pick the
Right
Projects
Best in
Class
Training
Discipline
around
Methodology
Celebrate
Successes to
get the ‗fly
wheel‘ spinning
1. Belt candidates are identified as a normal outgrowth of the MDS PDP
process;
2. Belt candidates are ‗assessed‘ using a set of 11 dimensions by 2-3
people and they complete an MDS HR Profile Instrument.
3. The Deployment Manager or a Unit BB will compile the results and
convene a short meeting to determine the qualifications of the
candidate for the program.
4. Successful candidates will then be scheduled into the next available
GB or BB training class.
5. Progress and Performance reviews of candidates during the
certification process are part of the ‗discipline around the methodology‘
portion of the overall program.
The 11 Dimensions in our
Competency Model
1. Passion for Improvement, (personally, professionally and organizationally), Operational
Excellence, LeanSigma –
2. Intellect, Analytical and Technical Skills for this type of work:
3. Process orientation/Systems Thinking/Creation Skillful/Creative Problem-solver –
4. Business Process knowledge, Content Knowledge –
5. Ability to spend required time –
6. Customer Focus and Creation of Franchise Value orientation
7. Respected by the Organization
8. Training, Coaching, Communication Skills
9. Leadership Values, Core Competencies, Skills
10. Ability to catalyze and cause change through influence
11. Business Acumen, Functional competencies
Workouts
Voice of Customer
Kaizens
Employees
Define, Measure, Analyze, Improve, Control
Recognize
Voice of the Process
Voice of the
Business
Portfolio
Management Project Descriptive Unit Belts VSO Total Benefits ($)
Other Benefits (25%) Total Score
AP Imaging Solution Fin Malinda Kalan Lisa Greatrix High High 139, 000
Treasury Project Fin Paul Mazzuchin Michael Cossar High Medium-High 35, 000
Vendor Master File Data Accuracy Fin Steven Augustesen Lisa Greatrix High Medium-High 20-60, 000
Unit Total 214, 000
BC Essential Information Dx Robbie Bowers John Racher Medium Medium-High 140, 000
Materials Standardization Dx Daniele Chan David Langstaff High High 200, 000
BC Micro Biology Dx Barb McLeod John Racher High High 120, 000
Reduce Variability in Front End
Materials Cost Per PatientDx Mario Balassone David Langstaff TBD High 300, 000
Incorrect Data on Requisitions Dx Lynne Fowler David Langstaff High High 135, 000
Incorrect Data on Requisitions Dx David Langstaff David Langstaff TBD TBD TBD
Morphology Productivity Dx Colette Bechard David Langstaff Medium Medium-High 200, 000
Hematology Morphology Dx Rob Poulin David Langstaff Medium Medium-High 200, 000
Needlestick Reduction Dx Elisa Mirabelli David Langstaff High Medium-High 25, 000
Front End Data Entry Errors Dx Joan Cresswell David Langstaff High Medium-High 100, 000
Mobile Specimen Handling Dx Norma Neale David Langstaff TBD High 289, 000
Improve Analytic TAT for STAT Test
Performed at FMC ChemistryDx Leslie Laurie Leslie Laurie TBD High 150, 000
PSC Productivity and Patient Wait Time Dx Mary Gorko Leslie Laurie Medium Medium-High 72, 000
SSC Sample Integrity Defects Dx Leah Nichols Leslie Laurie Medium Medium-High 50, 000
Unit Total 1, 981, 000
Late Stage Talent Sourcing HR Zahra Bhojani Kerri Smiley Medium Medium-High 252, 000
Transaction Flow from BU to Pay HR Trish Currie Sherry Smith TBD TBD TBD
Unit Total 252, 000
Help Desk Optimization IT Ash Rajendra Tom Gernon TBD TBD TBD
Unit Total TBD
Rationalization of Change Control Nordion Mike Krzaniak Jill Chitra Medium Medium 90, 000
Optimizing Capsule & Adjuster Mfg. Nordion Scott Taylor Corby Nicholson Medium Medium 65-130, 000
Sales Order Fulfillment Nordion Meri-Jo Thompson Scott McIntosh Medium Medium-High 165, 000
Optimizing Stores Systems at
TheratronicsNordion Scott Taylor Corby Nicholson Low Medium 50-100, 000
Unit Total 427, 500
Evaluation Score
+ = $$$ VS
Workshops
Program
Initialization
Engage
the
‗Right‘
People
Pick the
Right
Projects
Best in
Class
Training
Discipline
around
Methodology
Celebrate
Successes to
get the ‗fly
wheel‘ spinning
‘Quick Wins’
Implementation & Realization
24 October 2011 12-13 December Montreal 46
Improvement Opportunities at MDS and how
we go about capturing them
Continuous I
mpro
vem
ent
―Fruit on the Ground‖
Logic & Common Sense—Kaizen’s
That Core teams work on
―Low Hanging Fruit‖ –
Lean Workout and Kaizen Blitz events
―Bulk of the Fruit‖ – DMAIC
(Statistically based problem solving)
―Sweetest Fruit‖ – Innovation and DFLS
B
reakth
rough
Lean
Sigma
Creative
Problem
Solving
Innovation &
Design for
LeanSigma
Deloitte Enterprise Value Map
Accounts,
Notes, and
Interest
Payable:
Refine Days-
outstanding
strategy
Account
Management:
Increase
emphasis on
customer
satisfaction
Account Management:
Improve
Responsiveness to
Customer Complaints /
Feedback
Increase
emphasis on
customer
retention
Impact on Enterprise Value from
Completion of Lean Project!
ISE’s have to know how to create 3-level business cases (Level 1 below)
High Level Overview
Current State
Problem Statement
VOB VOC Potential Future State
Inputs / Outputs
Moving Forward
The change cycle at the
organizational level
Investment
in change
initiatives
Learning
Capabilities
New Business
Practices
Business
Results
Credibility
Enthusiasm
& Willingness
to Commit
People
Involved
Networking
and
Diffusion
Personal
Results R3
R1
R2
We are here
organizationally:
―FRAGILE‖
2006 2007 2008 2010
White Belts
Yellow Belts
Awareness
2006 2007 2008 2010
Green Belts
Black Belts
Master BlackBelts
2006 2007 2008 2010
2006 2007 2008 2010
Value (Dir
Benefits only) Projects
Controlled
Mutiny Change
Leadership
66
140
230
550
850 1700
2500
4100
100
200
450
1000
$6M
$16M
$38M
$90M
Infrastructure Pick Right
People
Pick Right
Projects
Best in Class
Training &
Development
Disciplined
Execution and
Accountability
Results and
Culture
MDS Portfolio Financials from Enterprise Track (as of 15 November):
The Benefits per project are tracking to our benchmark data.
NOTES:
1--Finance Rep‘s make the call on
Direct versus Indirect in the Tollgates.
The further into the DMAIC process
the projects get the more accuracy
and precision we have on the
numbers. They are updated and
enhanced at each TollGate and then
‗locked‘ at the I/C tollgate. 21 projects
have financials loaded. Fernando is
double checking this report and will
have validation this week.
2—This is the first year we have had
disciplined conversations around the
Actualization of Realized Benefits from
LeanSigm projects into Operating
Budgets. There are major gaps
between what we are showing in ET
and the #‘s in budget planning
discussions. This is predictable and
common at this stage of a deployment.
Avg. Annualized
Direct Benefit /
Project = $57,828
Our Financial Forecasting and Tracking Process is still work
in progress, discipline and skill is improving
Steady State Benefits (Cdn$) by Phase (DMAIC Belt Project Only)
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
Define Measure Analyze Improve Control Realization
DMAICR Phase
Cd
n $
0
5
10
15
20
25
30
# P
roje
cts
Indirect Steady State Annual Benefit
Direct Steady State Annual Benefit
# Projects
3 Year NPV
(DIRECT at
discount rate @
10%)
3 Year NPV
(DIRECT +
INDIRECT at
discount rate @
10%)
Steady State
Annualized
(DIRECT)
Benefit
Steady State
Annualized
Benefit
(DIRECT +
INDIRECT) % Direct
9,185,715$ 17,427,892$ 5,667,156$ 9,902,997$ 57%
Benefits are growing and getting more accurate as we increase our
capacity to do more projects (more belts, more projects per belt)
Lean Sigma Program Trending of Projects & Benefits (Cnd $)
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
Aug-06 Sep-06 Oct-06 Nov-06 Dec-06
Reporting Period
Cd
n $
0
20
40
60
80
100
120
# P
roje
cts
Steady State Annualized (INDIRECT) Benefit
Steady State Annualized (DIRECT) Benefit
# Projects
Agenda
I. Purpose, Objectives, Background
II. Key terms, concepts, constructs, questions, confusions
III. Value Add of the right certification to a BSISE
IV. Options, different paths, key issues to address
Q&A Throughout
CIE
Member Organizations:
Boeing John Deere
GM Kraft
Campbells Disney
Triumph Vought UPS
Walmart Questar Energy Services
Hershey Intel
Council on Industrial Engineering
IIE's Council on Industrial Engineering (CIE) is comprised of 30 individuals who are ranking executives of industrial,
commercial, or government organizations. CIE members have extensive experience in the management and practice of
industrial engineering. Their current activities influence the image and practice of the profession, and their span of control
includes the function of industrial engineering at the corporate level.\
The purpose of the CIE is:
• To further the sharing of information among its members regarding best business practices and processes in the
profession of industrial engineering.
• To be a forum of learning for emerging technologies and new practices and processes through guest lectures,
plant visits, and other appropriate means.
• To be an information advisory group to IIE and its constituent groups in support of the profession and IIE‘s
CIE Point of View
BSISE is super, can‘t get enough good ones
BSISE plus the Certification and experience at creating
results that comes with it is SUPERnth
My personal opinion is that if you do the certification
‗right‘, it can build the resume, be a career accelerator.
BUT it depends on how you apply yourself and to a large
extent who your coach is, again, my point of view.
Agenda
I. Purpose, Objectives, Background
II. Key terms, concepts, constructs, questions, confusions
III. Value Add of the right certification to a BSISE
IV. Options, different paths, key issues to address
Q&A Throughout
Options
Consulting firms, in this business of the world. BMGI is the one I know best and they do it for a
living, they have outstanding MBB‘s, outstanding rigor, and great curriculum. Do certificates and
certifications, classroom as well as virtual and blended.
Universities: A great deal of variability, buyer beware, do your homework. Lowest price is
obviously not always good. They will double talk you on certificate versus certification. Their
certification standards are not industry level hence you would put certification, per them, on your
resume and it would simply not hold up under scrutiny in any company with a solid program. I can
get specific as I have done some investigation but only one-on-one and it‘s just my point of view. I
do think that Fisher‘s Program at OSU is one of best, I know that sounds biased but it is a well
designed and executed program.
Professional Societies: ASQ clearly leads the way in this. IIE is rapidly developing great
programs but at this point only for certificates.
Companies: Many of the larger organizations will have their own programs but they, rightfully so,
view these as almost MBA programs and have limited openings at BB level for sure. The
certification cost to a company is somewhere between $10,000 and $20,000 . Our certification at
OSU in ISE has proven portable. Many of the other options, external, will prove to be not so
portable I believe so you get what you pay for and do your homework!!!
Best Practices in the Design, Development,
Deployment and Execution of:
Operational Excellence Programs Quality and Productivity Improvement Programs
Integrated LeanSigma Programs Continuous Improvement Programs
With a focus on the role of ISE’s
7 November
Crowne Plaza O‘Hare
