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

4. Lean & Six Sigma

5. Lean & Six Sigma – From Project Selection to Benefit Realisation

6. Lean & Six Sigma – Roadmaps

9. Drive and direct change

10. Kaizen Events, Lean Six Sigma Projects

11. Identify & remove waste within their own work

13. Address root causes of process problems

14. Refine LSS metrics & support structures

16. Select diverse portfolio of pilot projects

17. Launch LSS pilots

18. Measure & adapt LSS structure appropriately

19. Integrate LSS into organisational fabricMaturity Time

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

23. Linking Your Strategy to Lean Six Sigma Projects Selection

25. Customer

26. Financial

27. Operation

28. Processes

30. Timeliness

31. Quality

33. Business unit

34. Design (DFSS)

35. Infrastructure

37. Defect reduction

38. Yield improvement

39. Cycle time reduction

42. Evaluate market position

43. Estimate breakthrough potential

44. Evaluate NPM readiness

45. Establish benchmarks

46. Executive ownership of findings

47. Identify barriers to implementation

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

51. Lean Six Sigma (LSS)

53. Improve processes by eliminating waste & delivering value

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

58. Approach- Qualitative

59. Goal– Reduce waste and increase process speed

60. Impact - Incremental

61. Projects – Small

62. Change- Transition

63. Method– Kaizen Events, Value Stream Mapping, Process Balancing, Constraint Identification, Mistake proofing

65. Approach- Quantitative

66. Goal– Reduce variation, improve CTQ

67. Impact – Larger impact

68. Projects – Large

69. Change - Transformation

70. Method – Management engagement, 100% dedicated as Champions & Black Belts Use DMAIC with TQM tools to eliminate variation

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

74. Project Charter

75. Develop SIPOC Map

76. Map Business Process

77. Map Value Stream

78. Gather Voice of the Customer & Voice of the Business

79. Develop CCR’s & CBR’s

80. Finalise Project Focus

81. Develop SOP’s, Training Plan & Process Control System

82. Implement Process Changes and Controls

83. Monitor & Stabilise Process

84. Transition Project to Process Owner

85. Identify Project Replication Opportunities

86. Calculate Financial Benefit

87. Propose Critical X’s

88. Prioritise Critical X’s

89. Conduct Root Cause Analysis on Critical X’s

90. Validate Critical X’s

91. Estimate the Impact of Each X on Y

92. Quantify the Opportunity

93. Prioritise Root Causes

94. Develop Potential Solutions

95. Develop Evaluation Criteria & Select Best Solutions

96. Evaluate Solution for Risk

97. Optimise Solution

98. Develop ‘To-Be’ Process Map(s) and High-Level Implementation Plan

99. Develop Pilot Plan & Pilot Solution

100. Identify Key Input, Process Output Metrics

101. Develop Operational Definitions

102. Develop Data Collection Plan

103. Validate Measurement System

104. Collect Baseline Data

105. Determine Process Performance/Capability

106. Validate Business Opportunity

107. Project Selection Tools

108. PIP Management Process

109. Value Stream Map

110. Various Financial Analysis

111. Project Charter

112. Stakeholder Analysis

113. Communication Plan

114. SIPOC Map

115. High-Level Process Map

116. Non-Value Added Analysis

117. VOC and Kano Analysis

118. RACI and Quad Charts

119. Multi-generation Plans

120. Control Charts

121. Standard Operating Procedures (SOP’s)

122. Training Plan

123. Communication Plan

124. Implementation Plan

125. Visual Process Control

126. Process Control Plans

127. Project Commissioning

128. Project Replication

129. Plan-Do-Check-Act Cycle

130. Pareto Charts

131. C&E Matrix

132. C&E/Fishbone Diagrams

133. Brainstorming

134. Detailed ‘As-Is’ Process Maps

135. Basic Statistical Tools

136. Non Value-Added Analysis

137. Hypothesis Testing

138. FMEA

139. Box /Interaction Plots

140. Simple & Multiple Regression

141. ANOVA

142. Brainstorming

143. Benchmarking

144. Process Improvement Techniques

145. Line Balancing

146. Process Flow Improvement

147. Replenishment Pull

148. Purchasing and Sales Strategy

149. Poka-Yoke & 5S

150. FMEA & TPM

151. Solution Selection Matrix

152. ‘To-Be’ Process Maps

153. Piloting and Simulation

154. Operational Definitions

155. Data Collection Plan

156. Histograms / Pareto chart

157. Statistical Sampling

158. Measurement System Analysis (MSA),

159. Gage R&R

160. Constraint Identification

161. Setup Reduction

162. Generic Pull

163. Control Charts

164. Process Capability, Cp & CpkTools

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

169. Strategic

170. Financial

171. Customer

172. Operational (Process)

173. Prioritise value levers

174. Translate Value Levers into Opportunity Areas

175. Translate Opportunity Areas into Project Ideas

176. Score each project as High / Med / Low for Benefit and Effort

177. Fill in Benefit / Effort Matrix

178. Review plotted results

179. Select highest priority opportunities for further analysis

180. Assign opportunities to project sponsors for project definition

181. Complete Draft Project Charters

182. Evaluate projects using Evaluation Criteria

183. Update Benefit / Effort Matrix

184. Review plotted results

185. Prioritise projects

187. How do you do, Go / No Go criteria? 29 This is not a preferred Action 31%-50% Check before starting Ready to go! Traffic Light ! 0%-30% > 51%

188. Evaluate & Rank 30

189. Do you undertake stage-gate reviews? 31 Stop Stop Tollgate Review Tollgate Review Stop Tollgate Review Stop Stop Tollgate Review Tollgate Review

190. How do you perform benefit tracking? 32

192. Coach / Mentor / Facilitate

193. Lead s complex programs

195. Trained on selective tools

196. Analyses daily challenges

198. Communicate BI Strategy

199. Manages BI stakeholders

201. Lead s change program

202. Trained on 6 Sigma tools

204. Trained on selective tools

205. Analyses daily challenges

207. Monitor projects

208. Sustain benefits

210. Participates in BB projects

211. Trained on selective tools

213. Project identification and selection

215. Lean Six Sigma – Roadmaps

216. Kaizen Event - Roadmap 36 Lean / Kaizen Event Sustain & Control Diagnose Plan Project / Change Management Stakeholder Management Kaizen 1 Diagnostics Continuous Improvement (CI) Kaizen 1 - Sustain Business Improvement Kaizen 1 CI Kaizen 2 - Sustain Kaizen 1 CI Kaizen 3 - Sustain Days

218. Y=F(X)

219. Scope

220. Timeline

221. Priorities

222. Videos

223. SOP

224. Waste

225. Baseline

226. Identify Process Owner / Super-visor

227. Roles & Respon-sibilities

228. Daily Reviews

229. Benefit Review

230. Vol / Capacity

231. Metrics / KPI

232. Videos

233. Visual Mngt

234. 5S & 8W

235. Future SOP

236. Train & Test

237. QA Program

238. Change Mngt

239. Sign Off

240. Lessons Learned

241. Report Out

242. Issue / Risk Closure

243. Future Opportunities

244. Follow up Plan

245. Quality Assurance Reviews

246. Further Training & DevelopmentBusiness Improvement 7 Days 3 Days 10 Days Diagnostics - 5 Weeks

247. Lean Six Sigma - Roadmap 38 Project & Change Management Trained BB / GB Define (2 Wk) Stakeholder Management Measure (3 wk) Analyse (2 Wk) Business Improvement Improve (3.5 Wk) Control (1.5 wk) Weeks

248. DMAIC – Work Load Distribution 39

249. DMAIC - High Level Overview

250. DMAIC – 100,000 feet overview 41

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?

256. Misys does not invoice Cache’ key until installed Depot does not invoice for the goods delivered until 50 days from shipment date

259. Upon shipment check that the customer is invoiced immediately

260. Recorded hours spent

261. Recorded time stamp when PO received

264. Customer receipt of goods (time & correct delivery location

269. Collect date entered into spreadsheet

270. Validate against Avnet tracking email

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

275. 56 “quote.” - a

276. 57 Good Luck http://www.linkedin.com/in/anandsubramaniam