Weitere ähnliche Inhalte Ähnlich wie Lt module 01 ls overview - rev b (20) Kürzlich hochgeladen (20) Lt module 01 ls overview - rev b2. Objectives
At the conclusion of this module you will be able to:
Define the term Lean
Define the term Six Sigma
Understand how LeanSigma is:
– A Philosophy
– A Methodology
– A Measure
– A Culture
Discuss how LeanSigma is aligned with business and individual
objectives
Discuss how Lean and Six Sigma work together to optimize
processes
Understand some of the tools and measures
Understand how LeanSigma makes our jobs easier!
© PPL Corporation 2011
3. Does this ever occur?
Question Time?
• Are long working hours Common?
• Is rework (doing the same task multiple times) a fact of life?
• Do employees spend a lot of time compiling, re-compiling, editing?
• Is there more than one way to perform a task?
• Has the company grown without changing practices?
• Have “Band-aids” been applied to areas that are broken?
• Do you have standardized procedures?
• Do you implement best practices?
• Do employees understand how their role affects the process?
• Do people communicate the right information at the right time to the right
people?
© PPL Corporation 2011
4. What is LeanSigma Designed to do?
Ensure highly effective World Class processes that are
cost competitive and consistent with customers needs
Implement and Sustain change initiatives to improve
performance
Lead initiatives to reduce operating costs to industry
leading levels
Develop and implement blueprint for a World Class
LeanSigma Enterprise
– common processes, measurements and systems
– common training and skill requirements
© PPL Corporation 2011
5. World Class Enterprise
85% 15%
Value Typical Value-Adding**
Non Value Adding (NVA) Adding ratio
87.5% 12.5%
If focus is only on
improving Value-Adding
NVA VA operations
50% 50%
Companies decrease lead time
rapidly by reducing non value-
NVA VA adding activity!
Lead Time
© PPL Corporation 2011
6. Learning Philosophy
People tend to support what they help
create;
Tell Me and I Will Forget
Show Me and I Will Remember
Involve Me and I Will Understand
© PPL Corporation 2011
7. There is no I in Team?
The vision should be an integrated business system
that links people and processes across the entire
value stream ( Series of activities and materials )
“Improvement in Isolation is Not Effective”
Sales &
Engineering SCM Shop Floor Production
Marketing
Quality Information Human
Suppliers
Systems Systems Resources
CUSTOMER
SERVICE
© PPL Corporation 2011
8. Lean Thinking
TransactionalSigma Lean Thinking means challenging the
existing administrative processes and practices that:
– Are no longer applicable in a Lean Environment, and/or
– Support business needs that no longer exist, and/or
– Are complex and require simplification.
The following slides list typical questions that should be
asked to generate ideas for LeanSigma Transactional
Teams.
© PPL Corporation 2011
9. LeanSigma Thinking
Sales, Marketing, Order processing
– What is the value to the organization in having complete and accurate
information in the quoting process?
– What is the cost of selling products and services that do not fit well in the
production value stream?
– How can you reduce the number of order entry transactions?
– Can you eliminate manual interfaces by some means of electronic data
interchange methodology?
– What would be the effect of reducing the skills required to perform order
processing using work simplification and standardization?
© PPL Corporation 2011
10. LeanSigma Thinking
Human Resources
– What would be the benefit of reducing the effort associated with payroll-related
activities such as processing and correcting time cards?
– What would be the benefit to the organization of simpler, more frequent
employee reviews focused on value stream performance?
– How can compensation practices be changed to reinforce lean behaviors such as
teamwork, standardized work, and cross training?
– What would be the impact to the organization on employee retention of improving
the screening, hiring, and orienting process?
© PPL Corporation 2011
11. LeanSigma Thinking
Supply Chain
– Are there better ways to control inventory that require less effort while providing
the desired results? Using Visual Management?
– How you reduce inventory transactions? What will be the impact of reduced
inventory transactions on the quality of data and information?
– What activities will change with the incorporation of vendor managed inventories?
– What is the impact on the value stream if you eliminate purchase orders?
– How can you use the newly available time of purchasing and inventory
management personnel to improve supplier performance?
© PPL Corporation 2011
12. LeanSigma Thinking
Accounting
– What is the time and effort required to perform month-end closing activities?
– How will more real time financial and accounting information benefit the decision
making process and the organization in general?
– What changes are required in the accounting process to support a lean
transformation of manufacturing?
– What would be the impact to the organization if the accounting function reduced
its portion of the order-to-cash process?
© PPL Corporation 2011
14. What is Lean?
Lean is the elimination of anything not absolutely required
to deliver a quality product or service, on time, to our
customers.
Lean focuses on improving process flow.
Lean is a means of driving process standardization.
Lean drives work at the pull of the customer.
© PPL Corporation 2011
15. Lean Focuses on Waste
All Waste degrades
performance
There are 8 Primary Sources of
Waste:
− Defects Sources of waste can be:
− Over production
− Waiting
− Not Using Talent • Identified
− Transportation
− Inventory
• Quantified and
− Motion prioritized
− Extra Processing
• Eliminated or
greatly reduced
Lean eliminates waste,
improving process Speed
© PPL Corporation 2011
16. History of Lean
Taiichi Ohno of Toyota was the primary architect
Started with a factory/manufacturing orientation
Developed to systematically attack the eight types of
muda (waste)
Tools and methods evolved by trial and error over
decades
The result was the Toyota production system; the basis of
all lean systems
© PPL Corporation 2011
18. What is Six Sigma?
Six Sigma is a philosophy for managing process
improvement.
Six Sigma is a means of continuously improving to meet
customer needs.
Six Sigma is a method for reducing process variation
and improving process stability.
Six Sigma is a measurement of defects and variation.
© PPL Corporation 2011
19. Six Sigma Focuses on Variation
All variation degrades
performance Sources of variation can be:
Variation buffers include:
– Inventory
– Time
– Extra Capacity • Identified
Not all variation is bad • Quantified and
– New products
– New services prioritized
Six Sigma focuses on
– Variation due to process
• Eliminated or
– Variation due to flow greatly reduced
Six Sigma improves Stability
and Accuracy
© PPL Corporation 2011
20. History of Six Sigma
Originated in Motorola in the mid ’80’s
– Lots of tools, but no method for solving problems
Six Sigma Black Belt methodology began in late 80’s/early 90’s.
Many companies have embraced Six Sigma:
– Allied Signal – 1994
– The Stanley Works – 2004
– Air Products – Prior to 2000
– GE – 1996
– Bank of America - 2002
Strategically driven program with top down projects that yield high
Return on Investment
Follows LeanSigma roadmap to identify problem’s root causes
and implement improvements
© PPL Corporation 2011
21. Sigma: The Measure
LeanSigma the Methodology, uses Sigma the Measure to
Quantify Process Performance
© PPL Corporation 2011
22. Sigma: The Measure
Cost of Quality – total costs
of quality issues to
products, process,
Yield DPMO COQ Sigma opportunities and customers
99.9997% 3.4 <10% 6 World Class
99.976% 233 10-15% 5
99.4% 6,210 15-20% 4 Industry
Average
93% 66,807 20-30% 3
65% 308,537 30-40% 2 Non Competitive
50% 500,000 >40% 1
Source: Journal for Quality and Participation, Strategy and Planning Analysis
What is 15 - 20% of Revenue worth to you?
© PPL Corporation 2011
23. Understanding LeanSigma Levels
Say you played 100 rounds of golf per year…
what would a Six Sigma be in your game?
2 sigma - you'd miss 6 putts per round
3 sigma - you'd miss 1 putt per round
4 sigma - you'd miss 1 putt every 9 rounds
5 sigma - you'd miss 1 putt every 2.33 years
6 sigma - you'd miss 1 putt every 163 years
© PPL Corporation 2011
24. What Does LeanSigma Mean In Your Daily Life?
99% Good (3.8 Sigma) 99.99966% Good (6 Sigma)
Postal System Postal System
20,000 Lost Articles of Mail / Hr 7 Lost Articles of Mail / Hr
Airline System Airline System
Two Short-Long Landings / Day 1 Short-Long every 5 Years
Medical Profession Medical Profession
200,000 Wrong Drug 68 Wrong Drug
Prescriptions / Week Prescriptions / Week
© PPL Corporation 2011
25. What Does LeanSigma Mean Your Daily Life?
PPM
Prescription Writing
Tax Advice
Restaurant Bills
1,000,000 Payroll Processing
100,000
10,000
Baggage Handling
1,000
100
10
Airline
1 Safety Rate
1 2 3 4 5 6 7
Sigma Level
© PPL Corporation 2011
26. Lean Removes Waste
Six Sigma Optimizes
Removes Waste
Inputs Process Outputs
Removes Variation
© PPL Corporation 2011
27. Why Six Sigma + Lean?
Traditional Six Sigma deals with Variation: “How
can we eliminate process variation and defects?”
Lean strategies look at Speed: “How can we do
the work faster and more efficiently?”
Not all projects need all the tools.
Cost
Triple
Constraint
Delivery
Quality
© PPL Corporation 2011
28. Why Lean + Six Sigma?
Lean Six Sigma
• Waste Elimination • Variation Reduction
• Standard Work • Scrap / Rework Elimination
• Flow • Process Optimization
• Customer PULL • Process Control
STABILITY &
SPEED ACCURACY
LEAN + SIX SIGMA = A POWERFUL COMBINATION
© PPL Corporation 2011
29. LeanSigma Benefits
Our Company:
Financial savings
Better cash flow
Increased revenue
Waste, defect and variation
reduction
Improved efficiency
Higher skilled workforce
Commonality – tools, language
Our Customers:
Requirements consistently met
Higher quality
Consistent on time delivery
Higher satisfaction
© PPL Corporation 2011
30. LeanSigma is…
….A Philosophy that
– Focuses on continuous organizational improvement
– Institutes data driven decision making
– Covers the whole business value stream
– Aligns projects with strategy
– Drives big results
and
….A Methodology that
– Is based on Lean and Six Sigma tools
– Provides a problem solving roadmap
– Uses a set of data driven tools to measure process performance and
identify critical process drivers
© PPL Corporation 2011
31. LeanSigma is….
…a simple, unique, proven and lasting approach
for improving our business performance based on:
Alignment of the customer, strategy, processes and people
Big, measurable business results
Selective but broad deployment of advanced quality and
statistical tools
© PPL Corporation 2011
32. LeanSigma Focuses on Processes
“85% of the reasons for failure to meet customer
requirements are related to deficiencies in systems
and processes… rather than the employee. The role
of management is to change the process rather
than badgering individuals to do better.”
- W. Edwards Deming
© PPL Corporation 2011
33. Changing The Decision
Making Processes
Decision Making Types of Problems
Path You Will Normally Solve
1. Intuition, gut feel, I think… Simple
2. We have data and look at it
3. We make graphs / charts of the data
4. We use advanced statistical tools
to evaluate the data Complex
How Many Times Have Your Heard This?
“I Think The Problem Is…”
© PPL Corporation 2011
34. Roles and Responsibilities
Projects /
Team Direction
Black Belt Green Belt Support
Strategy / Champion
Annual Operating
Lean Techs
Plan Team Members
Reporting
Master Black Belt
Executive Team
© PPL Corporation 2011
35. The Roadmap
Define Measure Analyze Improve Control
Initiate the Understand the Analyze Data to Verify Critical Finalize the
Project Process Prioritize Key Inputs Using Control System
Input Variables Planned
Define the Evaluate Risks Verify Long
Experiments
Process on Process Identify Waste Term Capability
Inputs Design
Determine
Improvements
Customer Develop and
Requirements Evaluate Pilot New
Measurement Process
Define Key
Systems Lean Tool
Process Output
Variables Measure Applied
Current
Process
Performance
© PPL Corporation 2011
3 - 4 weeks 4 – 6 weeks On-going
36. Using Lean Tools
Within the LeanSigma Roadmap
Cell Design
Kanban / Pull
Mistake Proofing
Baseline analysis
Improvement Events
Process observation
5S Improvement
Value Stream Map
Define Measure Analyze Improve Control
Charter Spaghetti diagrams Performance to TAKT
Time Value Chart Standard Work
Purpose
TAKT time / Cycle time
© PPL Corporation 2011
37. Summary
Six Sigma is:
– An initiative used to proliferate process improvement in any organization
– A problem solving approach based on following the DMAIC roadmap that
focuses on reducing variation
– A measure of defects
Lean is:
– A set of tools used to reduce waste in a process, thus increasing process velocity
Six Sigma focuses on variation, Lean on speed
Lean and Sigma together, form LeanSigma and enable us to drive
breakthrough improvements in our organizations.
© PPL Corporation 2011
38. Revision History
Rev Date Course Changes Name
A 11/16/2011 Lean Technician First Draft TJ Barron
B 1/26/2012 Lean Technician Review with TJ Barron
Rachel H.
© PPL Corporation 2011
Hinweis der Redaktion Any time you have variation, you will need these three buffers to deal with it. Toyota was constrained – limited resources – “ What do we need to get the job done?” Still do 1500 Ace or Kaizen events / year. WHY? ENTROPY…processes are improved, but eventually become unorganized again, think of your garage, or your closet, when was the last time you cleaned it? Any time you have variation, you will need these three buffers to deal with it. Current defect We are looking for this just Emphasize the magnitude to the difference between various sigma levels Not everything needs to be Perscriptions = hand-writing Your charter should be clear, concise, and written in language that can be understood by people who are not involved in the project. Everyone on the team should be able to articulate the charter, particularly the business impact, or financial benefit, of the work that you are doing. Review the charter at the beginning of team meetings to make sure it is still relevant and correct. The Improvement Team and Champion should continue to further clarify the charter as work progresses. It is important that the charter, at all times, reflects the best understanding of the project. The following page is a suggested template for a project charter. *SLT = Senior Leadership Team