Process Improvement Imagine the Future

What is Process Improvement? Better (Quality) Faster (More Efficiency) Cost Effective Profit (King) Savings Cost Avoidance 2Not to be reprinted without the expressed written permission by SSD Global, Inc.

What is A Process? Renting a Car Enrolling in Class Washing your Clothes Getting Ready for Work What are some business processes? 3Not to be reprinted without the expressed written permission by SSD Global, Inc.

It All Began With TQM Total Quality Management

History - Results Industrial Revolution Challenges Autocratic Scientific Era Famous Textile Studies Not to be reprinted without the expressed written permission by SSD Global, Inc. 5

TQM Process Making the Process Better (Quality) People Statistical Models Walter Andrew Shewhart W. Edwards Deming Joseph Moses Juran Not to be reprinted without the expressed written permission by SSD Global, Inc. 6

1980s: A Better Way to Do Better Lean Six Sigma ISO CMMI Kaizen Originally its own process improvement program Not to be reprinted without the expressed written permission by SSD Global, Inc. 7

Early 1990s Models Could be Modified and Used for Service Lean Manufacturing became Lean Thinking Six Sigma became Six Sigma for Service The Profit Factor Cost of Quality (COQ) had to make sense COPQ Not to be reprinted without the expressed written permission by SSD Global, Inc. 8

Mid 1990s Speed Not to be reprinted without the expressed written permission by SSD Global, Inc.

Late 1990s Birth of Lean Six Sigma Not to be reprinted without the expressed written permission by SSD Global, Inc.

How Would You Apply PI? Student Exercise Better, Faster, More Cost Effective? Cost Effective Profit Savings Cost Avoidance Industries Healthcare Education Finance 11Not to be reprinted without the expressed written permission by SSD Global, Inc.

What Methodology Should I Use? If I Know the Solution – Basic Project Management If I Don’t Know the Solution – a Process Improvement Methodology ISO, CMM, TQM … Lean Six Lean Six Sigma Not to be reprinted without the expressed written permission by SSD Global, Inc. 12

Project Management (I Know or I Think I Know the Solution) What is the Name of the Project? Who is My Sponsor? Project Overview Business Case Project Deliverables Scope Take All this Information & Make a Project Plan - WBS Not to be reprinted without the expressed written permission by SSD Global, Inc. 13

Process Improvement (Don’t Know How to Fix – What Method?) ISO CMMI Lean Six Sigma Lean Six Sigma Not to be reprinted without the expressed written permission by SSD Global, Inc. 14

Project Management (I Know or I Think I Know the Solution) What is the Name of the Project? Who is My Sponsor? Project Overview Business Case Project Deliverables Scope Not to be reprinted without the expressed written permission by SSD Global, Inc. 15

Why Lean Six Sigma? Discussing All Improvement Methodologies Emphasis is on Lean Six Sigma: 35% of U.S. companies engage in some form of Six Sigma 53% of Fortune 500 Companies 82% of Fortune 100 Companies Note: Lean Makes Six Sigma Easier, More Robust and Cheaper to Implement! 16Not to be reprinted without the expressed written permission by SSD Global, Inc.

All PI Programs Assume Basic PM is In Place What is Basic Project Management? What does a Project Manager Do? What is a PMP? Can You Be a Project Manager Without a PMP? What are some Examples of Projects? 17Not to be reprinted without the expressed written permission by SSD Global, Inc.

Review All Process Improvement Programs are Designed to Do What? Why Do Process Improvement Programs Assume PM is Already in Place? Currently What is the Most Popular, Easiest to Implement and Cheapest PI program? 18Not to be reprinted without the expressed written permission by SSD Global, Inc.

Sigma Levels One Way to Measure Process Improvement

What is Sigma ? 20 66 Sigma Level Defective Items (PPM) Defective Items (%) 1 697, % 2 308, % 3 66, % 4 6, % % % 20Not to be reprinted without the expressed written permission by SSD Global, Inc.

Different Six Sigma Levels ? 21 66 If your water heater operated at Four Sigma, you would be without hot water more than 54 hours each year. At Six Sigma, you'd be without hot water for less than two minutes a year. If your electricity operated at Four Sigma performance, your lights would be out 1.5 hours per week. At Six Sigma, you would be without lights about two seconds a week. 21Not to be reprinted without the expressed written permission by SSD Global, Inc.

If You were a Patient? Sigma Level Defective Items (PPM) Defective Items (%) 1 697, % 2 308, % 3 66, % 4 6, % % % 22Not to be reprinted without the expressed written permission by SSD Global, Inc.

Why is Six Sigma accuracy important? Because at 99% accuracy (4 Sigma): Two short or long landings at major airports each day 5,000 incorrect surgical procedures every week 20,000 lost articles of mail per hour No electricity for almost 7 hours each month At least 200,000 wrong drug prescriptions each year 50 dropped newborn babies each day Source: American Society for Quality 23Not to be reprinted without the expressed written permission by SSD Global, Inc.

Six Sigma – Reducing Mistakes Six Sigma strives for defect reduction, process improvement and customer satisfaction and is based on "statistical thinking" Everything is a process All processes have inherent variability Data is used to understand the variability and drive process improvement decisions 24Not to be reprinted without the expressed written permission by SSD Global, Inc.

Six Sigma and LSS Support the DMAIC Model Not to be reprinted without the expressed written permission by SSD Global, Inc. 25

Process Improvement Program Lean Thinking Lean Manufacturing

Lean Manufacturing Now Lean Thinking – Reducing Waste "Lean" comes from the ability to achieve more with less resource, by eliminating waste Based on TQM theory First Popularized by Manufacturing (Toyota) after WWII Now Used in All industries Promotes how to Recognize Hidden Waste 27Not to be reprinted without the expressed written permission by SSD Global, Inc.

Exercise Tim Woods

Knowledge of How Well You Reduce Mistakes, Minimize Waste and Use the LSS Models is based on Martial Arts Not to be reprinted without the expressed written permission by SSD Global, Inc. 29

Six Sigma Designations White Belt – an orientation Yellow Belt – an overview Green Belt – classroom training, completion of projects with the help of a black belt Black Belt – more intensive training, can run a project and manage green belts Master Black Belt – Trainer, mentor, supervises Black Belts 30Not to be reprinted without the expressed written permission by SSD Global, Inc.

Lean Six Sigma Summary Lean Six Sigma is a systematic approach designed to eliminate defects and reduce waste It typically uses the DMAIC model Each step in the DMAIC model is accompanied by statistical and analytical problem solving tools. Lean Six Sigma uses martial arts designations to determine various levels of expertise Students who use Six Sigma also use Advanced Excel, MS-Project, Intermediate PowerPoint and Microsoft Visio, Minitab, QI Macros 31Not to be reprinted without the expressed written permission by SSD Global, Inc.

The Famous Tree Swing Example

What Marketing Suggested

What Management Approved

What Engineering Designed

What Was Manufactured

What Maintenance Installed

What the Customer Wanted

DMAIC The Flagship Model

Not to be reprinted without the expressed written permission by SSD Global, Inc. The Basic Six Sigma Model 66 Define  Measure  Analyze  Improve  Control  40

DMAIC Models Not to be reprinted without the expressed written permission by SSD Global, Inc. 41

DMAIC Models – Some are Simple Not to be reprinted without the expressed written permission by SSD Global, Inc. 42

DMAIC Models – Some are Complex Looking Not to be reprinted without the expressed written permission by SSD Global, Inc. 43