An OpEx Implementation Process Introduction to S.Q.S. Continuous Improvement: An OpEx Implementation Process freeleansite.com freeleansite.com

Operational Excellence starts with a … Introduction to S.Q.S. Operational Excellence starts with a … “Continuous Improvement Mentality” freeleansite.com freeleansite.com

Continuous Improvement Mentality ? Introduction to S.Q.S. What is a Continuous Improvement Mentality ? Concerted effort of Leadership to continuously improve work and work processes utilizing common industrial engineering application methodologies … Lean Enterprise (Toyota Production System) Six Sigma Business Process Management/ Analysis freeleansite.com freeleansite.com

The Lean Enterprise … - Identify and eliminate Waste (Muda) and Introduction to S.Q.S. The Lean Enterprise … - Identify and eliminate Waste (Muda) and wasteful practices … Providing value in the eyes of the customer … “any part of the process for which the customer is willing to pay. Value added activities would be those involved in producing and delivering goods and services.” freeleansite.com freeleansite.com

Introduction to S.Q.S. Six Sigma … - Measure defects in a process and … (with rigor and discipline) systematically figure out ways to reduce them to zero. “Puts practical tools to work to root out defects at all levels achieving tangible results of cost savings, employee, customer and stakeholder satisfaction.” freeleansite.com freeleansite.com

Business Process Management/ Analysis … Introduction to S.Q.S. Business Process Management/ Analysis … - Provides Managerial Line of Sight > clear measurements and priorities that connect from top to bottom in the organization. “Key Performance Indicators” freeleansite.com freeleansite.com

Continuous Improvement Mentality Introduction to S.Q.S. Continuous Improvement Mentality Garner Individual and Team participation through several planned approaches … Suggestions Benchmarking Cross-functional Work Teams Application Workshops Professional Development freeleansite.com freeleansite.com

The S.Q.S. Methodology Employ Improvement Initiatives ! Within Operations … We focus efforts on concerns of Safety, Quality and Speed … (Productivity) Let’s … Describe the purpose of each of the elements Explore requirements of each element Define general time commitments freeleansite.com freeleansite.com

The S.Q.S. Methodology Employ Improvement Initiatives “Safety” Proactive Management approach to preventing workplace Incidents, Accidents and Personal injury… freeleansite.com freeleansite.com

The S.Q.S. Methodology Employ Improvement Initiatives “Safety” One ½ hr. meeting, 1st of each month… > Workshop topics may include: Haz Mat/ Haz Comm HR Issues - Technical, Legal, Moral, Ethical Fire, EMT’s, First Aid, CPR, Fire Squad/ Fire Drills Compliance (Visual Control, Visual Management) QWL Issues, Hazards and Operational topics > Indoctrination, propagation of “5S” Continued Implementation/ Follow-up/ Audits freeleansite.com freeleansite.com

The S.Q.S. Methodology Employ Improvement Initiatives “5S” Review … Practical approach to sustaining workplace productivity … 1S – Sort (organize) 2S – Set in order (everything in its’ place) 3S – Shine (cleanliness) 4S – Standardize (shadow boards, Kanban rules) 5S – Sustain (spider diagrams from audits) “5S” teams operate in factory and office areas freeleansite.com freeleansite.com

The S.Q.S. Methodology Employ Improvement Initiatives “Quality” Proactive Management approach to Defect Reduction and Product and Process Optimization Combined with … Poka - Yoke (Mistake Proofing) freeleansite.com freeleansite.com

The S.Q.S. Methodology Employ Improvement Initiatives “Quality” Weekly Team sessions may include: > Business Process Management/ Analysis Value Stream Mapping (Leadership Team) > Champion Development and Training Professional Development (Management) > Six Sigma implementation (Black Belts) with regularly scheduled team “Report-outs” – “Six Sigma Simplicity” modules delivered JIT freeleansite.com freeleansite.com

The S.Q.S. Methodology Employ Improvement Initiatives “Speed” (productivity) Proactive Management approach to Identify and Eliminate Waste through ‘Lean Linking’ … freeleansite.com freeleansite.com

The S.Q.S. Methodology Employ Improvement Initiatives “Speed” Weekly sessions may include: > Book reviews with Leadership Team > Lean projects following an abbreviated D/M-A-I-C process with regularly scheduled Team ‘Report-outs’ Topics/ Projects include: Kanban / Visual Control / Visual Management Point-of-Use Tooling, Tools, Supplies Cells, TAKT, Line Balance/Flow Issues Total Productive Maintenance, Andon Set-up, change-over reduction, etc … freeleansite.com freeleansite.com

The S.Q.S. Methodology Safety The standard metrics of accident/ incident frequency and severity are sufficient. Quality What is meant by quality will vary by company, but it must be quality in the eyes of the customer. As a result, customer returns or warranty claims are typically the basis for this metric. It is not a summary of internal quality metrics. It is important to realize that those metrics are only important to the extent that they provide information management can use to minimize cost, improve flow and provide customer “value”. (Value definition = transformation of form, fit, function or information; done right the first time; Customer willing to pay for…) Speed (Delivery performance) Delivery performance is the percentage of customer orders shipped when the customer requested them to be shipped. It should not be modified to accommodate company policies or shipping promises. It is purely a metric of manufacturing’s (or the service department’s) ability to meet customer requirements. freeleansite.com freeleansite.com

With a well-planned implementation, The S.Q.S. Methodology With a well-planned implementation, expected RESULTS may include … 35% to 50% reduction in lost time/ safety-related incidents and accidents 15% to 30% decrease in scrap and rework 25% to 40% reduction in total cycle time freeleansite.com freeleansite.com

AlliedSignal/ Honeywell Motorola The S.Q.S. Methodology Check out the Gain$ achieved by companies that have fully invested in improvement initiatives … G.E. > Added more than $ 2 billion to the bottom line in 1999 alone AlliedSignal/ Honeywell > Report savings of over $ 1.5 billion since 1993 Motorola > Saved more than $ 15 billion in first 10 years of Six Sigma inception freeleansite.com freeleansite.com

Slow and Sure Let’s begin … Real Improvement: The S.Q.S. Methodology freeleansite.com freeleansite.com

(example) Initial Engagement [Jan – June] Introduction to S.Q.S. (example) Initial Engagement [Jan – June] Garner Individual and Team participation through 7 Productivity Improvement Teams 5S Team (Administration) 5S Team (Floor, electronics) 5S Team (Floor, sheet metal) -------------------------------------------------------------------------------------------------------------------------------------------------------------- Six Sigma Team (Floor, electronics) Six Sigma Team (Floor, sheet metal) --------------------------------------------------------------------------------------------------------------------------------------------------------------- Lean Application Team (Floor, electronics) Lean Application Team (Floor, sheet metal) freeleansite.com freeleansite.com

Initial Engagement Areas addressed - Introduction to S.Q.S. Initial Engagement Areas addressed - 5S Teams – Safety, Organization, Flow Six Sigma Teams – Defects, Scrap, Yield Lean Application Teams – Cycle Time, Waste Objectives: Learn and apply C.I. tools/ techniques Cost Take-out (savings): approx 5% of sales freeleansite.com freeleansite.com

Initial Engagement [Jan – July] Introduction to S.Q.S. Initial Engagement [Jan – July] Scheduled Team Report – outs: “Define” Jan “Measure” March “Analyze” April “Improve” May “Control” July 1st ! “20XX” C.I. Plan (Leadership Team) freeleansite.com freeleansite.com

The S.Q.S. Methodology Employ Improvement Initiatives What’s different with this approach ? - Incorporates Lean and Six Sigma (S-L-O-W-L-Y) - Voluntary, simple, easy and fun ! (modular, delivered JIT) - A pro-active approach … (managed, scheduled and planned) - Implemented on a ‘part-time’ basis (a few hours a week) - Directly linked to strategic performance goals - Taps full potential of the organization – Utilizes Cross-functional Teams/ SME’s/ Mentors freeleansite.com freeleansite.com

Our Destiny ! Continuous Improvement: The S.Q.S. Methodology freeleansite.com freeleansite.com