The document discusses integrating Lean Six Sigma projects into an organization's strategy. It provides guidance on linking strategy to project selection, implementing a Lean Six Sigma program, and realizing benefits. Key elements discussed include establishing a vision and center of excellence, assessing process maturity, selecting the right projects aligned with strategic objectives, and tracking benefits. Roadmaps and templates are presented for Lean projects, Kaizen events, and the DMAIC process.
1. Integrating Lean Six Sigma Projects to Your Strategy How to integrate LSS – People, Processes, Systems, Methods, Roadmaps, Tools & Techniques? Anand Subramaniam
2. 2 “Good teaching is one-fourth preparation and three-fourths theater.” - Gail Godwin
20. Customer Experience – do you measure it? 6 Enhance Customer Experience Innovation (Business Model, Products / Services and Processes) External Stakeholder (Political, Society) Improve-ments Employee Engagement (Safety, Morale) Revenue & Growth Improve-ments Cost & Productivity Process Improve-ments Build cross functional teams - capabilities & competencies Lean Six Sigma Projects Business Process Standardisation (BPM)
21. Process Excellence 7 Process Improvement Improve existing processes to ever increasing values Process Innovation Identify & create new products & Processes CoE (Centre of Excellence) Process Management Maintain standard processes, metrics & leverage of improvements
22. LSS & Process Maturity Level– where are you? 8 Lvl 5 - Optimised Low High Continuously Improve Process Lvl 4 – Quantitatively Managed Measured Predictable Process Lvl 3 - Defined Standard Productivity / Quality Risk Std Consistent Process Lvl 2 - Managed Planned & Tracked Maturity levels should not be skipped Disciplined Process Lvl 1 - Initial Performed Lvl 0 - Not performed High Low
48. Identify risks / opportunities Business Strategy Key Performance Indicators Market place Leadership Processes Core Business Processes Process Output Measures Critical To Satisfaction Gap Analysis Support Processes
49. How have you closed the gaps? 13 Focus on closing gaps Business Strategy Key Performance Indicators Market place Leadership Processes Core Business Processes Process Output Measures Critical To Satisfaction Deploy key improvement areas into potential projects Key Improvement Areas Gap Analysis Support Processes D B E C A Prioritise potential projects Potential Projects ________ ________ Potential Projects ________ ________ Potential Projects ________ ________ Potential Projects ________ ________ Potential Projects ________ ________ Select projects that will have the greatest impact on driving the businesses key performance indicators, strategy, & critical to customer (CTQ) requirements. Active Projects
50. Here is an example..showing linkage 14 Strategic Intent e.g. 10% Return on Sales Financials STRATEGY Improve Revenue Improve EBIT TACTICS Reduce Operating Expenses Reduce Costs of Poor Quality Get more NEW customers Increase prices “share of wallet” Existing / New customers Processes EXECUTION Project C Project F Project B Project E Project A Project D
55. What about your KPIs? 18 Minimum Cycle Time Right Delivery Robust Performance! Maximum Flexibility Lean Transformation Minimum Waste Lean Tools Reduced Inventories Improved Capacity Management Six Sigma Quality Six Sigma Tools Highest Quality Right Quality Best Process Reliability Predictable Results! Rapid Response to Change
56. An example…to better your KPIs 19 Improvement Toolset Lean Environment Benefits Quality - Manufacture to target specifications - Ensure process capability/reliability - Standard operating procedures Minimum Cycle Time Six Sigma Maximum Flexibility Problems Identified and resolved - Rapid response to problems - Problems are solved immediately - Methods to eliminate root cause Minimum Waste Predictable Output - Minimal variation in the process - Predicable equipment/worker output - Material and information is available Reduced Inventories Value Add Lean Skills & Sustaining Improved Capacity Mgmt Elimination of Process Delay - Minimal Material movement - Small Lot production(EOQ =1) - Takt Time controlled - Continuous Flow Highest Quality Quality Management Systems Operational costs - Multi-skilled employees - Cellular manufacturing - Repeatable process performance - Optimised Facility Design Best Process Reliability Rapid Response to Change Sustaining Actions - Training - Leadership/Change Management - 1% Revenue savings
70. Method – Management engagement, 100% dedicated as Champions & Black Belts Use DMAIC with TQM tools to eliminate variation
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72. Lean Six Sigma Implementation - CSF 22 Customer Value Lean Six Sigma – Benefit Realisation Executive Commitment Lean Six Sigma Implementation Better Leadership Alignment Intellectual Capital Select the right problem Select the right people Top Line Growth Faster Train on the right tools Reward System Bottom Line Growth Financial Accountability Lower Cost Information System Cultural Change Sales & Marketing
165. Lean Six Sigma – Common Tools 24 Six Sigma Statistical Methods Sigma Calculation Regression Analysis Analysis of Means Analysis of Variance Control Plans Design of Experiments Common Project Charter Process Base lining Poka-Yoke Workplace Organisation 5’S Procedure Documentation Control Charts Advanced SPC Visual Management Total Productive Maintenance Process Mapping Problem Solving Method Quality Tools and Techniques Lean Lean transformation Demand Flow Management Cycle Time Reduction Setup Reduction Material Replenishment Models Waste Identification Product Segmentation Takt Time/ Line Balancing Kaizen Blitz Value Tree Value Stream
166. Lean Six Sigma – From Project Selection to Benefit Realisation
167. How do you generate improvement ideas? 26 Best Practices Ideas from Other Projects Root Causes Generate Improvement Ideas Brainstorming Project Goals “Discoveries” During Analysis Performance Targets Benchmark Ideas
251. Define Phase – Key Elements 42 2. Review Historical Data 3. Create a Value Stream Map 1. Develop the Charter SUPPLIER INPUTS PROCESS VALUE ADDED ACTIVITIES OUTPUTS CUSTOMER 4. Develop a High-level Process Map Manpower Machinery Material Methods Information Environment Products Services Billing Process Order Process Inventory Process Shipping Process 4. Create SIPOC 5. As~Is Process Map
252. Define Phase (Contd) 43 Problem Statement: Delighters Goal: Business Case: More Is Better Scope: Cost Benefit Projection: Milestones: Must Be CUSTOMERS SUPPLIERS VOC Key Issue CTQ Outputs Inputs Process Yield: 60% Yield: 90% Yield: 45% Yield: 98% Voice of the Customer Business Case Project Charter Initial Process Mapping
253. Measure Phase – Key Elements 44 100 % Identify key metrics Complete SIPOC 3. Operational Definitions 60 Frequency 55 SUPPLIER INPUTS PROCESS VALUE ADDED ACTIVITIES OUTPUTS CUSTOMER 50 45 40 35 30 Manpower Machinery Material Methods Information Environment Products Services 50 % 4. Data Collection 25 20 15 10 5 0 Forgot to Schedule Crew on high priority Facility not ready Rainy Weather Materials not found Reasons
254. Measure Phase (Contd) 45 Display Data Identify Process Capability Identify the Metrics LSL USL Cp = 0.4 I P O s = 2.7 InputMeasures ProcessMeasures OutputMeasures Measure the process Validate Measurement Systems Data Collection Plan Prioritise the Metrics Data Collection Plan UCL Col # 1 2 3 4 5 6 1000 O1 O2 O3 O4 Inspector A B What questions do you want to answer? Sample # 1st Trial 2nd Trial Diff 1st Trial 2nd Trial Diff X I1 0 1 2.0 1.0 1.0 1.5 1.5 0.0 Operational Definition and Procedures Data FMEA 2 2.0 3.0 1.0 2.5 2.5 0.0 I2 What LCL 3 1.5 1.0 0.5 2.0 1.5 0.5 Measure type/ How Related Sampling How/ -1000 I3 4 3.0 3.0 0.0 2.0 2.5 0.5 Data type measured conditions notes where 5 2.0 1.5 0.5 1.5 0.5 1.0 I4 Totals 10.5 9.5 3.0 9.5 8.5 2.0 10 20 30 Averages 2.1 1.9 0.6 1.9 1.7 0.4 Sum Sum 3.6 4.0 R R Other D B F A C E 1.8 A B A 2.0 B X X How will you ensure What is your plan for consistency and stability? starting data collection? How will the data be displayed?
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256. Misys does not invoice Cache’ key until installed Depot does not invoice for the goods delivered until 50 days from shipment date
272. Control Phase (Contd) 53 Work Charac- Control Immediate Permanent Instructions Limits teristics Fix Fix Results Learning's • • • Recommendations next Date of Issue: Issued by: Approved by: Revision Date Signature Reason Product Name Process Name Process Code # Control/Check Points Response to Abnormality Notes Flowchart Code # Method Who Who 1 2 12 Training Operating Curriculum Procedures Manual Training Manual s = 2.7 Fill to here Cp = 0.4 UCL LSL USL After Before } Improvement s = 3.7 LCL Cp = 1.4 A2 A1 A3 A4 A1 A2 A3 A4 Before After Good } Improvement } Remaining Gap Step 4 changes Target implemented Key Learning Closure Document & Standardise QC Process Chart Process Owner Evaluate Project Results . Ownership & Monitoring Process Change Management .
273. Dashboard – Linkage to Strategy 54 Process Capability of C2 USL Process Data Within LSL * Overall Target * Potential (Within) Capability USL 9 Cp * Sample Mean 6.21762 CPL * Sample N 100 CPU 0.41 StDev(Within) 2.25841 Cpk 0.41 StDev(Overall) 2.39212 Overall Capability Pp * PPL * PPU 0.39 Ppk 0.39 Cpm * 12 10 8 6 4 2 Observed Performance Exp. Within Performance Exp. Overall Performance PPM < LSL * PPM < LSL * PPM < LSL * PPM > USL 130000.00 PPM > USL 108973.12 PPM > USL 122385.02 PPM Total 130000.00 PPM Total 108973.12 PPM Total 122385.02 Cost Quality Machine Uptime Cost Per Widget Actual $51.25 Actual 2.0% Target $32.50 Target 3.5% Cost Per Employee Service Metrics Actual $91.50 Actual 4.5 Target $78.39 Target 9.0 Speed Customer Satisfaction Mean Time to Repair Overall Actual 4.5 hrs Actual 4.8 Target 6 hrs Target > 4 of 5 Response Time On Time Delivery Actual 4.5 Actual 1 hr 4.5 Target Target 2 hrs
274. Sustain Improvements The goal of this process improvement step is to make sure that your team’s implemented changes or improvements did indeed fix the problem, that it did not break anything else, and that the problem stays fixed. Watch Out !!!! The tendency is for people to go back to doing things they way they’ve always done them. 55