1. LEAN THINKING
with
Six Sigma
Cutting Costs, Improving Quality, &
Speeding Delivery
by
Continuous Process Improvement
Prepared By: Kurt E. Robertson
Organization Consulting Department
Saudi Aramco
874-6204
2. The Robertson Guarantee
IF YOU KEEP ON DOING WHAT
YOU HAVE ALWAYS DONE
YOU WILL KEEP ON GETTING
WHAT YOU’VE ALWAYS GOT.
I PROMISE
LEAN THINKING with SIX SIGMA
3. PRESENTATION OBJECTIVE
To Provide a brief overview of Lean & Six Sigma.
Things you should know about Lean:
Lean and Six Sigma can be successfully applied in both
operations and service environments
Automation shouldn’t be the first answer
Both Lean and Six Sigma are data driven
Lean is Team-based Lean takes a Systems Approach
Lean is a:
• physical transformation to your processes
LEAN THINKING with SIX SIGMA
• transformation of your organization cultural
4. LEAN IS ABOUT PEOPLE
EMPOWERMENT
Empowerment does not mean total freedom;
it is the ability to make choices within
boundaries. It is focused freedom. A shared
vision of what we want to create provides
the focus and direction that ensures that
empowerment does not lead to chaos.
Center for Study of Work Teams
Harley Davidson Company
LEAN THINKING with SIX SIGMA
5. Lean compared to Six Sigma
• Lean and 6σ are like the Democrats and the Republicans in the U.S.
Congress
– they both think they are right, and that you are wrong if you don’t agree with them
– very few from one side ever change sides
– some of their methods and decisions are sub-optimal
– but each adds balance to the process when applied reasonably and
knowledgeably
• Lean focuses on:
– reducing the 8 Wastes
– Improving process flow
– Increasing process speed
• Lean cannot always bring a process under statistical control
• Six Sigma helps:
– reduce process variation (one of the 8 wastes)
– reduce defects
• Six Sigma alone cannot dramatically optimize process flow and reduce wastes
Because of their complementary natures, each brings to the
improvement process something the other does not, and the fusion of
Lean and 6σ is rapidly gaining popularity.
LEAN THINKING with SIX SIGMA
DO LEAN FIRST before SIX SIGMA 99% of the time
6. Complementary Tools
6 Sigma
OVERALL YIELD vs SIGMA
# of (Distribution Shifted ±1.5σ)
Steps ±3σ ±4σ ±5σ ±6σ
1 93.32% 99.379% 99.9767% 99.99966%
7 61.63 95.733 99.839 99.9976
10 50.08 93.96 99.768 99.9966
ion
20 25.08 88.29 99.536 99.9932
40 6.29 77.94 99.074 t 99.9864
60 1.58 68.81 98.614
a ria 99.9796
sv
80 0.40 60.75 98.156 99.9728
100 0.10 53.64 97.70 99.966
L les
150 --- 39.38 96.61 99.949
200 --- 28.77
- 95.45 99.932
E ps
300 --- 15.43 93.26 99.898
te
400 --- 8.28 91.11 99.864
rs
500 --- 4.44 89.02 99.830
A 600 --- 2.38 86.97 99.796
we
700 --- 1.28 84.97 99.762
N fe
800 --- 0.69 83.02 99.729
900 ---
- 0.37 81.11 99.695
s te
1000 --- 0.20 79.24 99.661
1200 --- 0.06 75.88 99.593
wa
3000 --- --- 50.15 98.985
17000
s s --- --- 1.91
0.01
94.384
87.880
Le
38000 --- ---
70000 78.820
150000 60.000
Source: SIX SIGMA RESEARCH INSTITUTE
Motorola University Motorola, Inc.
LEAN THINKING with SIX SIGMA
7. Combining Lean and Six Sigma
•Lean reduces cost, improves quality, and speeds delivery by
eliminating non-value added activity in a process by identifying
and eliminating waste.
•Six Sigma is a more data-driven approach which aims to
reduce cost, improve quality, and speed delivery by reducing
process variability and defects using the five-step DMAIC
model. 6σ depends heavily on data mining and data integrity.
•Lean Six Sigma: Any combination should maintain the
integrity of each discipline while combining the benefits of
each. Attempting to make one look like a part of the other
Sub-optimizes both. Problem complexity often determines
which to use. Don’t use a hammer to crack a peanut shell.
LEAN THINKING with SIX SIGMA
8. When to use Lean or Six Sigma
Lean is an AXE. Use Lean if:
This is the first and or second pass at identifying and eliminating
waste
Process problems include:
flow
operator cycle time
product lead time
delivery time
quality
costs
You need rapid improvement
You need a mile-wide, inch-deep approach
Six Sigma is a SCALPEL. Use Six Sigma if:
Lean has made a first pass with improvement
Defects and variation still persist and you need refined data analysis
with an inch-wide, mile-deep approach
Lean is not about tinkering with your existing processes.
LEAN THINKING with SIX SIGMA
It is a Process and Cultural Transformation
9. Harvesting the Fruit of Lean Six Sigma
Difficult-to-Reach Fruit
Production Preparation Process (PPP)
Design for Six Sigma (DFSS)
Middle Fruit
Six Sigma tools
----------------------------------
Low-Hanging Fruit Degree
Lean tools
of
---------------------------------- Complexity
Ground Fruit
Logic and Intuition
LEAN THINKING with SIX SIGMA
10. Let’s Talk Lean First
And you should Do Lean First in most cases
LEAN THINKING with SIX SIGMA
11. AGENDA
• History
• Definition
• Goal
• Process
• Value Stream Mapping
• Kaizen
• Becoming Lean
• Lean and Quality
• Metrics
• Why Lean Fails
• Six Sigma
• Resistance
• Six Sigma
• Your Responsibility
• How it ends LEAN THINKING with SIX SIGMA
• Resources
12. Lean History
15th Century 1905 1945-1973 1973 1974-2005 1973-2005
The Republic “Today and The Toyota Oil Embargo Books about : Boeing
of Venice Tomorrow” Production JIT Danaher
by System Cellular Manufacturing U.S. Navy
Henry Ford Visual Factory U.S. Air Force
Agile Manufacturing Airbus
W. Edwards Flexible Manufacturing Dell Computer
Deming Synchronous Mfg Maytag
Pull Production Whirlpool
Rapid Continuous McDonald’s
Improvement Microsoft
Kaizen
Group Technology And most companies
that have tried
MIT Theory of Constraints
“The Machine That and Six Sigma
Changed the World”
“Lean Thinking” LEAN SIX SIGMA
by
James Womack
Time
LEAN THINKING with SIX SIGMA
13. AGENDA
History
• Definition
• Goal
• Process
• Value Stream Mapping
• Kaizen
• Becoming Lean
• Lean and Quality
• Metrics
• Why Lean Fails
• Resistance
• Your Responsibility
• How it ends
• Resources
LEAN THINKING with SIX SIGMA
14. LEAN
Is based on the Toyota Production System
Is the Identification and Elimination of
WASTE in the Process
Got its name from MIT and James Womack’s
research team
Is process simplification, and the relentless
removal of waste from all processes
Improves Quality, Cost, Delivery, Safety,
Morale (QCDSM)
Increases process capacity
Reduces defects
Results in a stable, reliable, repeatable, predictable
LEAN THINKING with SIX SIGMA
process
15. General Rules
1. Lean is about fixing the SYSTEM and transforming the
CULTURE (CM).
2. Lean is about FLOW.
3. Lean is about people, not just about improvement tools.
4. Lean is about YOUR expectations and about what
YOU are willing to tolerate in terms of Quality, Cost,
Delivery, Safety, and Morale (QCDSM).
5. Processes rarely get better on their own.
6. Successful processes have rules, standards, &
absolutes.
7. To solve a problem you have to admit you have one.
8. Problems need to be quantitatively defined and their
corrective action quantitatively tracked. (Measurement
System).
9. Every project needs a Value Stream Champion.
LEAN THINKING with SIX SIGMA
16. The System
Planning Material Supply Operations Sales and Marketing
Value Stream
Value Stream
LEAN THINKING with SIX SIGMA
17. WASTE
Waste is any activity that:
1. The customer isn’t willing
to pay for.
2. Doesn’t positively change the
form, fit, or function of the product
or service (Value Added)
18. If it prevents the FLOW
of product or information….
LEAN THINKING with SIX SIGMA
19. Lean Focus – The 8 Wastes
Lean focuses on identifying and eliminating the 8 hidden wastes common to both
manufacturing and service industries:
1. OVER-PROCESSING: Adding more value to a service or product than
customers want or will pay for. A 15 page report when 1 page would do.
Design Engineer enhancing or modifying customer specifications. PROCESS
COMPLEXITY
2. MOTION: Needless movement of people (hunting, searching, gathering things).
3. TRANSPORTATION: Unnecessary movement of materials.
4. EXCESS INVENTORY: Work-In-Process (WIP) or raw material (RM) that is in
excess of what is required to produce Just-In-Time (JIT) for the customer.
5. WAITING: Any delay between when one process step/activity ends and the next
step/activity begins.
6. DEFECTS: Any aspect of the product or service that does not conform to
customer needs. (SIX SIGMA) Variation = defects
7. OVER-PRODUCTION: Production of service outputs or products beyond what is
needed for immediate use.
8. UNUSED EMPLOYEE CREATIVITY: Losing time, ideas, skills, improvements,
and learning opportunities by not engaging or listening to your employees.
-- The Toyota Production System
LEAN THINKING with SIX SIGMA
20. The 9th Waste - HASTE
– American (or Western adage):
“Haste makes waste.”
“If you don’t have time to do it right,
when will you have time to do it
over?” -- J. Raymond Robertson
LEAN THINKING with SIX SIGMA
22. Why Lean?
Business as Usual
CUSTOMER Waste PRODUCT
ORDER BUILT & SHIPPED
Lead-time
Lean Process
CUSTOMER PRODUCT
ORDER BUILT & SHIPPED
Waste
Lead-time (Shorter)
LEAN THINKING with SIX SIGMA
23. Why Lean?
Typical Value Stream Ratio of
Value-Added to Non-Value-Added Activity
3%
97% NVA VA
Where’s
Most Process Improvement the Real
Teams Attack this . . . Opportunity?
97% NVA
. . . Achieve this . . .
. . . and Ignore this
Source: C. Fiore; Lean Strategies for Product Development, ASQ, 2003
LEAN THINKING with SIX SIGMA
24. Excess Inventory
Our corporate body guard against bad processes
A $ea of RM & WIP
Reduce the inventory and see the wa$te!
LEAN THINKING with SIX SIGMA
You can ‘t be Lean unless your suppliers are Lean.
25. Who Is Lean??
• Fire Fighters
• Hospital Emergency Rooms
• Lifeguards
• Boeing (Leaner)
Where lives are at risk, you will probably find Lean
processes.
What about the rest of us??
LEAN THINKING with SIX SIGMA
26. Typical Causes of Waste
1. Layout (distance)
2. Long set-up time
3. Poor work methods
4. Lack of training
5. Functional organizations
6. Technology Gaps
7. Little understanding of the
entire process
8. Historic supervisory roles
9. Irrelevant performance measures
10. Lack of workplace organization
11. Supplier quality/reliability
12. Poor communication
13. Avoidable interruptions
14. Complexity
LEAN THINKING with SIX SIGMA
15. More…
27. Non-Value-Adding Activities
(Operations)
“Non-value-adding” activity (NVA) consumes time and
money...but does not change the value of an item.
1. SORTING
2. COUNTING
3. STACKING
4. EXPEDITING
5. TRANSFERRING
6. CHECKING
7. TRANSPORTING
8. HUNTING, SEARCHING, GATHERING
LEAN THINKING with SIX SIGMA
29. The Goal of Lean
Improved product Quality, Cost, Delivery; Improved
employee Safety and Morale (Q C D S M) in any
operational or service process.
1. By establishing
• (one-piece) Flow
• Based in Takt Time
• In a Pull environment (JIT)
2. But first I need processes that are:
• Stable
• Reliable
• Predictable
• Repeatable
3. I get those processes by establishing:
• Awareness - at all levels of the organization
• 5S – Workplace organization
• Value Stream Mapping – information and material flow
• Flow – improve plant or office layout
• Leveled Production – reduce lot sizes, setup time, lead times,
LEAN THINKING with SIX SIGMA
inventory
• Standard Work – improve quality, maintenance; simplify processes
30. Lean Kaizen Sequence
Processes can be transformed
Distribution
in days, weeks or months, System Kaizen
One-piece flow
but plan 1- 6 years Pull/Kanban
Takt time
for the corporate
Equipment Kaizen (TPM)
transformation 3P, Autonomation
Leveled Production
Line Balancing
Reduce: lot sizes, setup times, lead times,
operator cycle times, inventory
AWARENESS
FLOW: AIWs (Gemba Kaizen)
Factory Layout Kaizen
Standard Work: Operator Methods
process simplification,
quality and maintenance
-5S –
Organize the workplace
LEAN THINKING with SIX SIGMA
31. The Lean Toolbox
1. Value Stream Maps 17. SIX SIGMA
2. Rapid Improvement (Kaizen) 18. Chaku-Chaku / Load-Load
Events 19. Heijunka / Load Leveling
3. Education 20. Bottlenecks
4. Employee Involvement 21. Point-of-Use Delivery
5. Metrics and Alignment 22. DFMA
6. Flow Cells 23. Control Charting
7. Standard Work 24. Pareto Analysis
– Capacity Analysis 25. Histograms
– Takt Time / Cycle Time 26. Root Cause Analysis
Standard Ops Worksheet 27. 5 Why’s
– Production Control Board 28. Hypothesis Testing
8. 5S / Visual Controls 29. Supply Chain Management
9. Pull/Kanban Systems 30. Critical Chain Project
10. Brainstorming Management
11. Prioritization 31. 7 Quality Control Tools
12. Spaghetti Chart 32. 7 Management & Planning
13. Poka-Yoke / Mistake Proofing Tools
14. Set-up Reduction 33. Nominal Group Technique
15. Total Productive Maintenance with SIX 34. Production Process
LEAN THINKING SIGMA
16. Change Management Preparation (3P)
32. How Do I Know Which Tool To Use?
How do you know whether to use Microsoft:
– Excel
– PowerPoint
– Word
– Access
– Project
– Visio
Excel is probably not the best choice for word processing.
Word is probably not the best choice for calculations.
**The KNOWLEDGEABLE, EXPERIENCED use of a tool
is the key to the SUCCESSFUL use of a tool**
LEAN THINKING with SIX SIGMA
33. AGENDA
History
Definition
Goal
Process
• Value Stream Mapping
• Kaizen
• Becoming Lean
• Lean and Quality
• Metrics
• Why Lean Fails
• Resistance
• Six Sigma
• Your Responsibility
• How it ends
• Resources LEAN THINKING with SIX SIGMA
34. Team Charter
Dates:
VSM
Impact
RIE Senior Management Sponsor:
Project
Value Stream Champion:
Just Do It Difficulty
Project Description:
Team Leaders and Members:
Potential Implementation Costs:
Business Reason for the Project:
Project Constraints
(Financial, Personnel, Equipment):
Expected ROI:
LEAN THINKING with SIX SIGMA
35. Definition of a Value Stream
The VALUE STREAM is the entire set of processes or activities
designed to transform the products and services into what is
required by the customer.
The VALUE STREAM
Suppliers
Suppliers Design
Design Procure Make
Procure Make Sell
Sell Customers
Customers
A Primary Focus is TIME,
Product and / or Service Flow
Information Flow: Quickly SIGMA Directions
LEAN THINKING with SIX
In All
36. Define the Boundaries
start stop
What keeps you awake
at night?
suppliers inputs Value stream outputs customers
• Where are the stakes in the ground that
define your Value Stream boundaries?
– We’ll focus our efforts between them!
LEAN THINKING with SIX SIGMA
37. Value $tream Map – Finding the WA$TE
90/60/30 day
6 week Production Control forecasts
SUPPLIER forecast CUSTOMER
MRP Daily
Weekly
Order
500 ft coils Fax 18400 pieces/month
Daily Ship -12000- L
Schedule - 6400- R
Tues. & Weekly Schedule
Tray = 20 pieces
Thurs. 2 shifts
Ass’y Ass’y
Stampin S. Weld S. Weld
#1 #2 Shipping
g #1 #2
I I I I I I
1 1 1 1 1 Staging
Coils 4600 L 1100 L 1600 L 1200 L 2700 L
5 days 2400 R 600R 850R 640R 1440R
C/T=1 sec C/T=39 sec C/T=46 sec C/T=62 sec C/T=40 sec
C/O=10 m C/O=10 m C/O = 0 C/O = 0
.0014% VA
C/O=1 hour
Uptime = Uptime = Uptime = Uptime = Uptime =
85% 100% 80% 100% 100%
27,600 *2 27,600 *2 27,600 *2 27,600 *2 27,600 *2
sec. avail. sec. avail. sec. avail. sec. avail. sec. avail.
5 days 7.6d 1.8d 2.7d 2d 4.5d PLT = 23.6 days
1 sec 39 sec 46 sec 62 sec 40 sec Process Time
(VAT) = 188 sec.
LEAN THINKING with SIX SIGMA
38. Current State
Value Stream Map
AREA: Harrier Maintenance Flight (500 Hour Minor)
Current State - March '02
BUSINESS CASE: VALUE STATEMENT: KEY REQUIREMENTS: MEASUREMENTS: IDEAL STATE:
Improve Harrier Maintenance Flight Identify, remove and repair failed, broken, or Core Manpower Requirements Productivity (hours per unit) ON DEMAND
Operating Performance obsolete parts for Harrier W eapon Platform, Operational Risk Throughput Time DEFECT FREE
functional test, and reapply finish
Quality and Flight Safety On Time Delivery 1 BY 1
Cost of other Platforms Floor Space LOW EST COST
LEAN THINKING with SIX SIGMA
Future State Implementation Pan
39. Current State Map
• Total time: 156 hrs
• waiting time: 148 hrs
• Value added time: 8 hrs (5%)
• No. of steps: 63
• Defect rate: 10%
• Backlog: 2 weeks LEAN THINKING with SIX SIGMA
• Distance traveled: 1.2 km
41. IN CHARGE OF FOLLOWUP: Project Name
Status of overall completion = % 28
Plan Dates
ACTION Who Comments %Status
Start Finish
PROJECT SUMMARY:
In charge
CCOMPL
of
Action Department this
BEGIN ET Comments 40
E
item
ASD / 7/3/200 7/10/200 AAD to AJD:Follow-up this action item and
1 100
MZU 7 7 report completion
AJD /
AAD to AJD: Make sure this is done
ASD 7/3/200 8/10/200
2 MAS: You can decide where the 5
/ 7 7
location of the hotline be.
MZU
ASD / 7/3/200 8/10/200
3 100
MZU 7 7
LEAN THINKING with SIX SIGMA
42. LEAN AGENDA
History
Definition
Goal
Process
Value Stream Mapping
• Kaizen
• Becoming Lean
• Lean and Quality
• Metrics
• Why Lean Fails
• Resistance
• Six Sigma
• Your Responsibility
• How it ends
• Resources LEAN THINKING with SIX SIGMA
43. Kaizen = continuous improvement
• RAPID IMPROVEMENT
• At the end of the week, a new process should be in place.
• Anything else is not rapid improvement. It’s a “STUDY”.
LEAN THINKING with SIX SIGMA
44. Team Charter
Dates:
VSM
Impact
RIE Senior Management Sponsor:
Project
Value Stream Champion:
Just Do It Difficulty
Project Description:
Team Leaders and Members:
Potential Implementation Costs:
Business Reason for the Project:
Project Constraints
(Financial, Personnel, Equipment):
Expected ROI:
LEAN THINKING with SIX SIGMA
45. Rapid Improvement Events (RIE)
• Action oriented
– “leaned” process in place and
functioning by close of event
– creativity before capital
• Learning by doing
• Transform the Value Stream
• Structure
– 3-5 days in length
– 3-5 teams cross-functional teams
– 6-8 people per team
– Seven week improvement cycle
• 3 weeks preparation
• 1 week execution
• 3 weeks follow-up
LEAN THINKING with SIX SIGMA
46. RIE Preparation Checklist
Rapid Improvement Events
By: Date: Prep. % COT:
PREPARATION
Team:
3rd Week Before Event: (% COT: ) 2nd Week Before Event: (% COT: ) 1st Week Before Event: (% COT: )
1) Identify the suppliers and inputs 1) Communicate key metrics, targets, and
1) Select the Value Stream from the
2) Identify the customers and outputs tools to be applied to all team participants
Enterprise
3) Identify the start / stop boundaries 2) Train team participants on improvement
Transformation Plan.
4) Gather facts and data to populate starting process and tools to be applied
2) Select the target area from Value Stream
numbers on Target Progress Report 3) Identify what "triggers" work
Analysis.
5) Populate the Target Progress Report 4) Double check availability of all resources:
3) Determine the focus - which Lean tools
6) Identify top three improvement metrics - equipment or furniture moves
will be applied?
7) Establish improvement targets on top three - computer or phone moves
4) Identify the Team Leader, Co-Leader, and
metrics, be aggressive - 5S, shadowing, kitting
Team Members.
8) Meet with affected stakeholders to - Production Control Boards
5) Assure at least 1/3rd of participants are
communicate Improvement Event schedule, 5) Communicate with affected area, review
from the affected area.
metrics, targets, and tools to be applied items listed on flip chart and ask for
6) Clear participants calendars for the
9) Set a flip chart up in affected area, ask clarification, make sure these are added to
Improvement Event Week.
stakeholders to put ideas for improvement Improvement Newspaper
7) Complete the Team Roster.
on flip chart. Start Improvement Newspaper. 6) Make sure team break-out area is ready:
10) Capture flow stopper information from - flip charts, markers, post-its, VSA blanks
Production Control Boards - forms, stop watches
11) Confirm the availability of any special 7) Make sure Process Champion is set
resources for: to give opening remarks on Monday
- equipment or furniture moves morning
- computer / phone moves 8) Make sure Process Champion is available
- 5S, shadowing, kitting for Team Leader Meetings Monday -
- Production Control Boards Wednesday
12) Obtain any special data collection 9) Schedule Final Presentation with Process
instructions from your Coach such as: Champion and appropriate leadership
- Information from previous Improvement 10) Plan working lunches
Events 11)Confirm all team participants are going to
- Customer critical to quality issues be available full time for entire event
- Safety data 12) Confirm Target Progress Report and
13) Confirm all participants are still available Team Roster are complete
for entire Event week
LEAN THINKING with SIX SIGMA
47. RIE Daily Checklist
Rapid Improvement Events
TEAM DAILY CHECKLIST
Day One. Day Two. Day Three. Day Four.
1. Review team goals and objectives, create Day 1 plan. 1. Identify wastes to attack. 1. Train Stakeholders on new cell layout and standard 1. Train Stakeholders on new cell layout and
work. standard work
2. Meet with Cell Stakeholders and review goals. 2. After TAKT time/Cycle time bar charts.
(loading diagram) 2. Assign a team member to each Stakeholder. 2. Assign a team member to each Stakeholder.
3. Before Data, Documentation and "Tools"
TAKT Time Calculation 3. Create plan for new cell layout. 3. Run new cell. 3. Run new cell.
Before Time Observations
Before Cycle Time Bar Charts (Loading Diagrams) 4. Meet with Stakeholders, review progress and plans 4. Fix problems immediately. 4. Create/post Key Point, Work Combination Sheets,
Before Standard Work Sheet/Cell Layout solicit ideas and concerns. Standard Work Sheet, Production Control Board,
Before WIP Count ($ and pieces) 5. Create production control board. and Kaizen Newspaper.
Before 6S Audit 5. After standard work combination sheets.
Before Safety Audit 6. Work on 6-S and safety issues. 5. Fix problems immediately.
Before Work Combination Sheets (one per operator) 6. Notify support groups by 2.00 PM of required
support. 7. Create/post Key Point, Work Combination Sheets, 6. After 6-S and safety audits.
4. Take a "Waste Walk", to further identify opportunities. Standard Work Sheet, Production Control Board,
7. Daily recap. and Kaizen Newspaper. 7. Off shop floor by 1:00.
5. Daily recap.
8. Create daily plan for Wednesday. 8. Daily recap. 8. After area pictures and Team picture.
6. Meet with Stakeholders and review progress.ideas.
9. Team Leader/Co Leader. How late do we stay? 9. Create daily plan for Thursday. 9. Prepare final presentation.
7. Create daily plan for Tuesday.
10. Daily Team Leader meeting. 10. Team Leader/Co Leader. How late do we stay? 10. Complete Team/Event binder.
8. Team Leader/Co-Leader. How late do we stay?
11. 6-S meeting area. 11. Daily Team Leader meeting. 11. 6-S meeting area.
9. Daily Team Leader meeting.
12. Implement plan/create cell. 12. 6-S meeting area. 12. Inventory kit boxes and find missing articles.
10. 6-S meeting area.
** Team Leaders need to assign action items ** Team Leaders need to assign action items ** Team Leaders need to assign action items ** Team Leaders need to assign action items
to specific people on the teams and require to specific people on the teams and require to specific people on the teams and require to specific people on the teams and require
follow up reports on progress at a minimum follow up reports on LEAN THINKING
progress at a minimum with SIXincrements.
SIGMA
follow up reports on progress at a minimum follow up reports on progress at a minimum
of two hour increments. of two hour increments. of two hour of two hour increments.
48. LEAN AGENDA
History
Definition
Goal
Process
Value Stream Mapping
Kaizen
• Becoming Lean
• Lean and Quality
• Metrics
• Why Lean Fails
• Resistance
• Six Sigma
• Your Responsibility
• How it ends
• Resources LEAN THINKING with SIX SIGMA
49. The 5S Principles:
Proper arrangement and orderliness
“Good factories (workplaces) develop beginning
with the 5Ss; bad factories fall apart beginning with
the 5Ss.” —Hiroyuki Hirano
50. 5S Workplace Organization
1. SORT (seiri): Clearly distinguish what is necessary & what is not. Remove
what does not support an organized, visual and Lean workplace.
2. SIMPLIFY (seiton): Ensure everything required to do the task has a visually
designated location, is available, functional, and can easily be seen, reached
and returned in the sequence used; Consider an operating room or fire
engine. Mark/label locations clearly.
3. SWEEP (seiso): Keep the work area, tools and equipment – Floors,
machines, desks, files, equipment – organized, organized, repaired (TPM),
and visually marked.
4. STANDARDIZE (seiketsu): Maintain & improve the first 3S’s. Establish
procedures so storage and cleaning actions are consistently applied by
everyone.
5. SUSTAIN (shitsuke): Hold the gains. Achieve the discipline/habit of
following the correct procedures. From this new level of efficiency, start
again.
LEAN THINKING with SIX SIGMA
51. Visual Controls
A Major Element of 5S
• Visual controls:
– Answer a question before it is asked
– Help spot abnormalities in the system
– Examples:
• Medical – Moment of Truth
• KSA/Bahrain Causeway booth lights:
– Avg and Std Dev
LEAN THINKING with SIX SIGMA
52. The 5S’s
Low Level of 5S
1. Sort
Needed from the
unneeded
2. Shine
Clean, scrub, and fix
3. Set in order
A place for High Level of 5S
everything
4. Standardize
A plan to sustain
5. Sustain
Following through LEAN THINKING with SIX SIGMA
53. Standard Work Board
TAKT time & Delivery Performance Measure
Andon Flag
Cell Key Measures
6S Layout
and
Assignments
Corrective Action
Matrix and Plan
Standard Work Bar Chart
LEAN THINKING with SIX SIGMA
60. Other Visual & Audio Controls
Visual and Audio controls answer questions before they are asked.
1. Clock
2. Traffic lights with a timer
3. Traffic Lines/ lights/signs
4. Sounds announcing break time
5. Call to Prayer
6. Score boards at sporting events
7. Arrival/Departure boards in airports
8. Lights indicating machine or process condition
9. Lights and siren on emergency vehicles
10. Gauges on medical & industrial equipment
11. Big teeth on a snarling lion
12. Take-a-Number systems
13. Colored caps on milk bottles
LEAN THINKING with SIX SIGMA
61. Point-of-Use Strategy: 7 Elements of Surgery
Information Hand
Tools
Instruments
Power
Tools
7 Elements
Of Surgery
Supplies
Fixtures
Fasteners
LEAN THINKING with SIX SIGMA
62. Supermarket Pull System
Kanban Kanban
Supplying Customer
Process product product
Process
Supermarket
•Customer Process goes to supermarket and withdraws what it needs when it needs it.
•Supplying Process produces to replenish what was withdrawn.
•Purpose: Controls production at supplying process without tying to schedule.
Controls production between flows.
LEAN THINKING with SIX SIGMA
63. Pull/Kanban Systems
Pull
• On Demand
– Upstream Supplier
– Downstream User
– Visual Trigger
• Sequenced
– Use FIFO lanes
• Replenished
– Create supermarkets with SIX SIGMA
LEAN THINKING
64. Traditional vs Cellular Flow
Dept 1 Traditional flow Cellular flow
Dept 2 DONE 4 3
IN OUT
OUT
IN IN
Dept 3
1 2
Dept 4
•Demand paced production
OUT IN IN
•Value-adding steps in order
OUT
•No stops, piles, or back-ups
DONE •Flexible
•Less transportation
•Less work-in-process
LEAN THINKING with SIX SIGMA
65. U – Shaped Cell
Andon
RM
FG
LEAN THINKING with SIX SIGMA
66. Other Important Lean Tools
1. Setup Reduction
2. Standard Operations
3. Times
– Operator Cycle Time
– Product Lead Time
– Waste Time
– Takt Time (customer driven)
4. Total Productive Maintenance (TPM)
5. Production Preparation Process (PPP)
6. Bottleneck reduction
7. Mistake proofing (Poke Yoke) (Example:
mobile SIM card)
8. 5 Whys
9. Self-Inspection and Acceptance (SI&A)
LEAN THINKING with SIX SIGMA
67. Lean Implementation Sequence
Distribution
System Kaizen
One-piece flow
Pull/Kanban
Takt time
PEOPLE
Equipment Kaizen (TPM)
3P, Autonomation
Leveled Production
Line Balancing
Reduce: lot sizes, setup times, lead times,
operator cycle times, inventory
AWARENESS
FLOW: AIWs (Gemba Kaizen)
Factory Layout Kaizen
Standard Work: Operator Methods
process simplification,
quality and maintenance
-5S –
Organize the workplace
LEAN THINKING with SIX SIGMA
68. LEAN AGENDA
History
Definition
Goal
Process
Value Stream Mapping
Kaizen
Becoming Lean
• Lean and Quality
• Metrics
• Why Lean Fails
• Resistance
• Six Sigma
• Your Responsibility
• How it ends
• Resources LEAN THINKING with SIX SIGMA
69. How Does Lean Help Quality?
RULE #1: Do not make, accept or pass on a defect.
RULE #2: Inspection is the enemy of quality.
RULE #3: The operator is responsible for identifying,
tracking and correcting his defect rate.
•By using standard work, reducing bottlenecks, and using
other Lean tools, Lean makes processes
– stable
– reliable
– predictable
– repeatable
•The HIDDEN FACTORY: Lean will not succeed without
addressing and correcting variation and its resulting defect
rate, because FLOW cannot exist in a process with a high
defect rate.
Our processes have THINKING with SIX SIGMA rates because we
LEAN
high defect
TOLERATE high defect rates
70. AGENDA
History
Definition
Goal
Process
Value Stream Mapping
Kaizen
Becoming Lean
Lean and Quality
• Metrics
• Why Lean Fails
• Resistance
• Six Sigma
• Your Responsibility
• How it ends
• Resources LEAN THINKING with SIX SIGMA
71. Implementation Metrics
Leading Indicators
1. Cycle Time
2. Inventory (amount, turn rate, IRA)
3. Productivity
4. Square Feet (foot print)
5. Set-up Time
6. Product Lead Time Lean is data driven
7. People Travel
8. Product Travel
9. Volume
10. Crew Size
11. Safety/Ergonomics
LEAN THINKING with SIX SIGMA
72. METRICS - The Forensics of CPI
1. What gets measured gets fixed.
2. If you can measure it, you can change it.
3. Metrics drive behavior. Tell me how you will measure me and I will tell
you how I will perform.
4. The folly of rewarding A while hoping for B.
5. Measure first, then manage.
6. Leading indicators versus Lagging indicators (NDE)– Always reviewing
the past, and not guiding the future. Manage the leading indicators,
and the lagging indicators will be O.K.
7. Problems must be quantified, exposed and confronted. Lean cannot
remedy an unacknowledged or hidden problem.
8. Don’t measure effort and process compliance. Measure results.
9. What you allow, you encourage.
10. Your Recommendations are only as good as your analysis. Your
analysis is only as good as your data. Your data is only as good as you
measurement system. Data Integrity is the foundation of a credible
project. LEAN THINKING with SIX SIGMA
73. AGENDA
History
Definition
Goal
Process
Value Stream Mapping
Kaizen
Becoming Lean
Lean and Quality
Metrics
• Why Lean Fails
• Resistance
• Six Sigma
• Your Responsibility
• How it ends
• Resources LEAN THINKING with SIX SIGMA
74. Reasons Lean Fails
1. No sense of urgency (burning platform)
2. Looking for a quick fix (lean pill)
3. No leadership commitment and support
• Awareness
• Full-time practitioners
4. No education and awareness among the employees
and management. (CM)
5. No understanding of Lean (flavor of the month)
6. No Sensei (Do-It-Yourself Lean)
7. No Value Stream Map
8. No implementation or sustaining plan (PM)
9. No customer and supplier involvement in the
improvement process.
LEAN THINKING with SIX SIGMA
75. AGENDA
History
Definition
Goal
Process
Value Stream Mapping
Kaizen
Becoming Lean
Lean and Quality
Metrics
Why Lean Fails
• Resistance
• Six Sigma
• Your Responsibility
• How it ends
• Resources LEAN THINKING with SIX SIGMA
76. Managing Resistance
Traditional Situation Leading Change
Increasing Increasing Increasing Increasing
Neutral Neutral
resistance cooperation resistance cooperation
Critical mass
Early adopters
Anchor
draggers Strong pull
from early
"Uncommitted adopters
Mass"
You cannot ignore the anchor draggers!
Management Management
attention attention
“The focal point really shouldn’t be onTHINKING with SIX SIGMA but on getting people
LEAN managing resistance,
excited about the benefits of the change.” -- Jeff Hiatt, president and CEO of Prosci
77. How Do You Know When You are Lean?
• 40% reduction in assembly hours per unit
• 60% reduction in lead time You never get Lean,
• 92% reduction in line move time with SIX SIGMA
LEAN THINKING you only get Leaner
78. Some Lean Successes
• Helicopter BCD Check: Reduced TAT from 28-
14 days
• Surveying Services: Exponentially increased
flying hours for the photography aircraft. 10%
increase in one week
• Wellhead Turnover: Days to turnover reduced
• Material Supply: Staging time reduced, scanners
repaired, forklifts replaced.
LEAN THINKING with SIX SIGMA
79. Lean in Project Mgt and Construction
Studies involving international companies suggest a 25% improvement in construction
productivity would be the low-hanging fruit. The main findings of the study are:
1. Avoidable Interruptions: Over 60% of workdays contain avoidable interruptions with
a loss in man-hours of 10-40%.
2. Overtime: causes approximately 5% loss in productivity for every 5 hours of overtime
per week.
3. Over-manning: 10% productivity loss for every 25% unplanned increase in labor
force.
4. Days of Week: Productivity on Tuesdays, Wednesdays and Thursdays
(Thursday/Friday/Sat in the West) can be 15% lower than that of the remaining part of
the working week.
5. Productivity: can vary by up to 400% (from day to day) for same crew, and over 25%
amongst crews performing similar activities under the same circumstances. Major
causes of productivity variation are interruptions, quality of labor force, and motivation.
Dr. Rashad Zakieh (PMP)
Operations Services
Saudi Aramco, Saudi Arabia
Tel. 874-3800 (Work) LEAN THINKING with SIX SIGMA
International email: rashadzakieh@hotmail.com
80. BOEING 737 FINAL ASSEMBLY
BEFORE
LEAN IMPLEMENTATION
LEAN THINKING with SIX SIGMA
83. LEAN AGENDA
History
Definition
Goal
Process
Value Stream Mapping
Kaizen
Becoming Lean
Lean and Quality
Metrics
Why Lean Fails
Resistance
• Six Sigma
• Your Responsibility
• How it ends
• Resources LEAN THINKING with SIX SIGMA
84. SIX SIGMA
•It is a process capability measure
•It is a commercial program
•Packaged at Motorola in 1985
•May lead to “Analysis Paralysis”
LEAN THINKING with SIX SIGMA
85. Lean Focus – The 8 Wastes
Lean focuses on identifying and eliminating the 8 hidden wastes common to both
manufacturing and service industries:
1. OVER-PROCESSING: Adding more value to a service or product than
customers want or will pay for.
2. MOTION: Needless movement of people (looking for things).
3. TRANSPORTATION: Unnecessary movement of materials.
4. EXCESS INVENTORY: any work-in-process or raw material that is in excess of
what is required to produce just-in-time for the customer.
5. WAITING: Any delay between when one process step/activity ends and the next
step/activity begins.
6. DEFECTS: Any aspect of the product or service that does not conform to
customer needs. (SIX SIGMA) Variation = defects
7. OVER-PRODUCTION: Production of service outputs or products beyond what is
needed for immediate use.
8. UNUSED EMPLOYEE CREATIVITY: Losing time, ideas, skills, improvements,
and learning opportunities by not engaging or listening to your employees.
LEAN THINKING with SIX SIGMA
86. Understanding Variation
Variation
• means that a process or product does not
produce the same results every time it is
measured
• is always present at some level
• is inherent in every process or product
• is our enemy in delivering services or
manufacturing products,
• reduction helps to improve quality, reduce
costs, increase profits, and increase customer
satisfaction.
LEAN THINKING with SIX SIGMA
87. Lean Six Sigma Process Improvement
Lean Six Sigma uses the DMAIC process for
• Project Management
• Project Execution
LEAN THINKING with SIX SIGMA
88. Dissecting DMAIC
Define Measure Analyze Improve Control
the process: the process gains:
what is important
to the customer?: Analyze Data Ensure Solution is
Identify Root Causes Sustained
Project Selection
Team Formation
Establish Goal
the process performance measures:
how well we are doing?: Prioritize root causes
Collect Data Innovate pilot solutions
Construct Process Flow Validate the improvement
Validate Measurement System
LEAN THINKING with SIX SIGMA
89. Y = f(x)
Y= f(x), refers to a problem or process output (Y), that is
the result of one or more process inputs (Xs). Eliminating
or improving the Xs reduces or eliminates the problem
(Y). Controlling the Xs provides a process that is more
– Predictable
– Reliable
– Capable
– Repeatable, and
– Dependable
The results are a Y that can be forecast, and a proactive
rather than reactive work environment.
LEAN THINKING with SIX SIGMA
90. Waste & Process Variation - The True Costs
Scrap
Inspection Rework
Traditional Cost of
Warranty Field Modifications
Poor Quality (COPQ)
Rejects (measured) Penalties & damages
Hidden Cost of Lost sales
Poor Quality (COPQ) times
Long cycle Overtime
Margin slippages (measurable) Late delivery
More receivables
Travel & Living Expenses
Longer Set-ups Lost Opportunity
Excess inventory
Expediting costs
(intangible) Lengthy Installs
Customer Productivity Loss
Sales compromises
Engineering Change Orders
Lost Customer Loyalty
Customer Dissatisfaction
Employee Morale, Productivity, Turnover
LEAN THINKING with SIX SIGMA
91. Understanding & Reducing Variation
# of Goals
Lower Specification Upper Specification
Limit LEAN THINKING with SIX SIGMA Limit
92. What Does Sigma Level Mean?
Example
Lower Upper
Specification Specification
Limit Limit Customers have
(customer) (customer)
Target a target in mind,
but will allow
some variation
within the Spec
Range
LEAN THINKING with SIX SIGMA
93. What Does Sigma Level Mean?
Example
Lower Upper
Specification Specification
Limit Target Limit Actual
Measurement has
Considerable
Variation
Defects Defects - Resulting in
Scrap, Waste,
Late Deliveries,
and Customer
Dissatisfaction
LEAN THINKING with SIX SIGMA
94. What Does Sigma Level Mean?
Lower Upper
Specification Specification
Limit Target Limit
How Capable is
our Process to
Produce within
Defects Defects
Spec?
2σ
Sigma Defects %
Level Per Mill. In Spec.
2 308,500 69.1
On Average it’s OK -- it’s a Variation issue
On Average it’s OK it’s a Variation issue
LEAN THINKING with SIX SIGMA
BEWARE OF AVERAGES
95. What Does Sigma Level Mean?
Lower Upper
Specification Specification
Limit Limit Reducing
Variation is
Clearly the Key
to Improving
Process
Capability
Sigma
Level
3
Defects
Per Mill.
66,800
%
In Spec.
93.3
3σ
LEAN THINKING with SIX SIGMA
96. What Does Sigma Level Mean?
Causes of
Variation Include
Lower Upper
Specification Specification a Variety of
Limit Limit Factors, such as:
1. Machines
2. People
3. Material
4. Environment
5. No Standard
Sigma Defects % Work.
4σ
Level Per Mill. In Spec.
4 6,200 99.4
LEAN THINKING with SIX SIGMA
97. What Does Sigma Level Mean?
Variation Causes
Errors, which
Lower Upper Cause Defects,
Specification Specification
Limit Limit which Lead to
Rework, and to
Processes which
are not
•Stable
•Reliable,
•Repeatable, and
•Predictable.
5σ
Sigma Defects %
Level Per Mill. In Spec.
5 233 99.98
LEAN THINKING with SIX SIGMA
98. What Does Sigma Level Mean?
Reducing
Variation
Lower
Specification
Upper
Specification
Reduces Errors,
Limit Limit and the
Resulting
Defects and
Rework, and
therefore leads
to Improved
Process
Sigma Defects % Capability
6σ
Level Per Mill. In Spec.
6 3.4 99.9997
LEAN THINKING with SIX SIGMA
99. Variation = Unpredictable Processes
Work Order Process
Mean
Improved Process
Existing Process
1 50 100
Output Variation in weeks
• Contracting process
• Material Delivery process
• Time to sink a well
• Wife’s shopping bill
• Wife’s shopping time
Customers Remember the Extremes (Variation), not the Average
LEAN THINKING with SIX SIGMA
100. ENTITLEMENT
Improved Process
Upper Mean
Specification
Entitlement Limit
Existing Process
1 50 100
Output Variation in weeks
LEAN THINKING with SIX SIGMA
LSS Helps Us Consistently Deliver the Best We Can Do.
101. What Does Sigma Level Mean?
Lower sure
Mea y Upper
is a bilit
Specification Specification
evel
Limit Limit
6σ
a L ss Capa
Sigm roce
of P
Sigma Defects %
Level Per Mill. In Spec.
2 308,500 69.1
3 66,800 93.3
4 6,200 99.4
5 233 99.98
LEAN THINKING with SIX SIGMA
6 3.4 99.9997
102. Practical Meaning of Six Sigma
3.8-Sigma
3.8-Sigma 6-Sigma
6-Sigma 3.4 defects per
million
99% Good
99% Good 99.99966% Good
99.99966% Good opportunities
• 20,000 lost articles of mail per hour • Seven articles lost per hour
• 5,000 incorrect surgical operations per • 1.7 incorrect operations per week
week
• Two short or long landings at most • One short or long landing every five
major airports each day years
• 200,000 wrong drug prescriptions each • 68 wrong drug prescriptions per year
year
LEAN THINKING with SIX SIGMA
103. Six Sigma Project Management Checklist
Define
Define Measure
Measure Analyze
Analyze Improve
Improve Control
Control
Identify Sponsor and other Create Fishbone Analyze Process Flow Develop solution options Perform Capability
key stakeholders •Tie to defined •Critical Path •Improve control of Analysis of improved
Form project team defect •Value-added significant root causes process
•Team leader Collect Data steps •Re-design process to Develop and Implement
•Team members •Ys (results) with •Non value- obtain required a Control Plan
Tour process Xs (data tags) added steps capability Complete Project
Clarify project Evaluate Measurement •Opportunities •Perform DOE as Closure Package
•Problem statement Systems Analyze Data required Update financial
•Goal statement •Gage R&R, •Graphical tools Evaluate options and select benefits statement as
•Process output = Y Understand detailed •Hypothesis final solution required
Define process process Tests •Prioritization matrix •Get OCD focal
boundaries •Detailed process •Interrelationship Determine measurement final evaluation
•High level map map w/ rework Digraph (if system for improved process List best practices
(SIPOC) loops appropriate.) Create implementation plan •Identify lessons
Define project boundaries Describe Process •Regression Update FMEA learned
•Resources •Numerical analysis Update financial benefits
•Authority statistics Identify and collect statement Use SPC Charts
Determine project timeline •Graphs: Time, additional required data •Contact Six Sigma Hand off project to
Identify CTQ Customer Hist., Pareto, etc. Identify significant Xs OCD for concurrence process owner
Requirements •Create control •Tie to root Obtain buy-in / support for •Create follow up
•Define the Defect chart cause analysis improvement actions action plan
•Define defect Establish Process •Draw Conduct pilot / testing to Develop Final report out
measure Capability conclusions verify results •Standard
Develop estimate of •DPMO or % Perform FMEA Implement improvements template
potential financial benefit if Defects Update charter as Collect data to verify
project goal is achieved •Calculate Z required improvement
Gain Sponsor Approval of Update Charter Develop Analyze Communicate results
Project Charter •as required report out Update Charter
Identify Pull and Push Develop Define/Measure •Standard •as required
Leveraging opportunities report out template Develop Improve report out
•Standard template •For Sponsor
Project Champion Master Black Belt
104. LEAN AGENDA
History
Definition
Goal
Process
Value Stream Mapping
Kaizen
Becoming Lean
Lean and Quality
Metrics
Why Lean Fails
Resistance
Six Sigma
Your Responsibility
• How it ends
• Resources LEAN THINKING with SIX SIGMA
105. You Turn the Gears
# of Teams Chartered
Value Stream # of Events
Penetration
Multiple Passes Full-Time Resources
Discipline to the Process
Results
Critical Mass
Internal Experts
Self-sustaining Lean Culture
DEPLOYMENT METRICS
LEAN THINKING with SIX SIGMA
106. Leadership’s Role
Senior Leadership
1. Create the Vision
– Where are we going and why are we going there?
2. Align the Organization
– Goals and Objectives
– One Plan – One Initiative
3. Participate in the Process
– Don’t just “talk it” , WALK IT
4. Commit Resources
– Right quantity and caliber
5. Educate the Workforce
6. Communicate
– Vision, Results, Lessons Learned
LEAN THINKING with SIX SIGMA
107. Leadership’s Role
The Manager’s Role
1. Help pick the right value streams, projects and teams
2. Follow the method
• Remove barriers to change
• Have one plan
3. Clearly define roles and responsibilities
4. Support the Education & Training of your employees
5. Communicate
• Engage the workforce in dialogue about Lean.
• Walk the walk, talk the talk.
• Host and participate in continuous process improvement activities.
Be a cheerleader.
• Emphasize quality, 5S, identification and elimination of waste.
• Demand follow-up and sustained improvement.
LEAN THINKING with SIX SIGMA
108. LEAN AGENDA
History
Definition
Goal
Process
Value Stream Mapping
Kaizen
Becoming Lean
Lean and Quality
Metrics
Why Lean Fails
Resistance
Six Sigma
Your Responsibility
• How it ends
• Resources LEAN THINKING with SIX SIGMA
109. The Results
REMEMBER: It is CONTINUOUS Process Improvement
• COST, QUALITY, DELIVERY, SAFETY, MORALE
• Lean Increases Capacity
– Your process can produce the same amount with fewer people.
– Your process can produce more with the same number of people.
• No more band aid solutions that become tomorrow’s problems.
• You come much closer to solving your process problems for the last
time
• In a process with
– Continuous Flow
– Based on Takt Time
– in a Pull Environment
LEAN THINKING with SIX SIGMA
110. Lean or Six Sigma Goal:
Breakthrough Performance Focused on things that matter
Current State Process
Lean or Six Sigma
Breakthrough
Defects, cost, l time, waste
Improvement Period
Future State Process
Time
LEAN THINKING with SIX SIGMA
111. LEAN AGENDA
History
Definition
Goal
Process
Value Stream Mapping
Kaizen
Becoming Lean
Lean and Quality
Metrics
Why Lean Fails
Resistance
Six Sigma
Your Responsibility
How it ends
• Resources LEAN THINKING with SIX SIGMA
112. Reading List
• Lean Thinking
• The Machine That Changed the World
• Better Thinking, Better Results
• Gemba Kaizen
• High Velocity Culture Change
• Learning to See
• 5 Pillars of the Visual Workplace
• The Goal
• Critical Chain
• The Gold Mine THINKING with SIX SIGMA
LEAN