1. www.emsstrategies.com Copyright EMS Consulting Group, Inc. 2010 Creating an Environment for Continuous Improvement Darren Dolcemascolo EMS Consulting Group, Inc.

2. www.emsstrategies.com Copyright EMS Consulting Group, Inc. 2010 Presentation Agenda 1.Continuous Improvement Overview 2.Pitfalls/Critical Success Factors 3.Techniques for Driving Continuous Improvement

3. www.emsstrategies.com Copyright EMS Consulting Group, Inc. 2010 Continuous Improvement Overview

4. www.emsstrategies.com Copyright EMS Consulting Group, Inc. 2010 Continuous Improvement SystemLean / Toyota Production System Six Sigma PhilosophyElimination of waste Reduction of defects/variation Improvement Process/Cycle PDCADMAIC ToolsVSM, 5S, Standardized Work, Leveling, SMED, TPM, One Piece Flow, Kanban, etc. Process Mapping, SIPOC, Hypothesis Testing, DOE, Control Charts, etc.

5. www.emsstrategies.com Copyright EMS Consulting Group, Inc. 2010 The TPS House Diagram A System Based on a Structure Goal: Highest Quality, Lowest Cost, Shortest Lead Time Best Safety, High Morale TPS Just In Time Right part- Right amount- Right Time Jidoka Built-in-Quality Line Stop Efficiency Visual Controls Error Proofing Andon 5 Whys Operational Stability Standardized Work TPM 5S Leveled Production Flow Takt Time Pull Quick Changeover Toyota Production System

6. www.emsstrategies.com Copyright EMS Consulting Group, Inc. 2010 What does Lean do? Value-Creating Time Non-Value-Creating Time (waste) Total Lead Time Lean Transformation

7. www.emsstrategies.com Copyright EMS Consulting Group, Inc. 2010 Thinking Lean 5 Principles of Lean (Womack and Jones, Lean Thinking) Specify value –can only be defined by the ultimate customer Identify/Map the value stream –exposes the enormous amounts of waste Create one piece flow –reduce batch size and WIP Let the customer pull product through the value stream –make only what the customer has ordered Seek perfection –C ontinuously improve quality and eliminate waste

8. www.emsstrategies.com Copyright EMS Consulting Group, Inc. 2010 Types of Muda or Waste Overproduction Waiting Transporting Inappropriate Processing Unnecessary / Excess Motion Excess Inventory Defects 78 Underutilization of Employees Minds/Ideas

9. www.emsstrategies.com Copyright EMS Consulting Group, Inc. 2010 PDCA Plan: Develop an Action Plan for Improvement Do: Implement the Plan Check: Verify Results Act: Make Necessary Adjustments and Define Next Steps Plan DoCheck Act

10. www.emsstrategies.com Copyright EMS Consulting Group, Inc. 2010 What is Six Sigma? Six Sigma concentrates on reduction of defects/variation in processes If you can define and measure customer requirements, you can determine how well you meet this requirement. Six Sigma, in statistical terms, translates to 3.4 defects per million opportunities (DPMO) The project implementation approach is called DMAIC (Define Measure Analyze Improve Control)

11. www.emsstrategies.com Copyright EMS Consulting Group, Inc. 2010 DMAIC Define the problem and what the customers requireDefine the problem and what the customers require Measure the defects and process operationMeasure the defects and process operation Analyze the data and discover causes of the problem.Analyze the data and discover causes of the problem. Improve the process to remove causes of the defects.Improve the process to remove causes of the defects. Control the process to make sure defects dont recur.Control the process to make sure defects dont recur.

12. www.emsstrategies.com Copyright EMS Consulting Group, Inc. 2010 Kaizen Events 3 to 5 day breakthrough event Working level participants w. facilitator Appropriate for use with several lean tools Kaizen: Good Change

13. www.emsstrategies.com Copyright EMS Consulting Group, Inc. 2010 Kaizen Events Overview Learn Observe Brainstorm Improve Report Kaizen Process

14. www.emsstrategies.com Copyright EMS Consulting Group, Inc. 2010 Critical Success Factors and Common Pitfalls of Continuous Improvement

15. www.emsstrategies.com Copyright EMS Consulting Group, Inc. 2010 Pitfalls? Tendency to use Lean/TPS/Six Sigma as a CookbookTendency to use Lean/TPS/Six Sigma as a Cookbook Tendency to make surface changes without applying principles properly (customizing to suit the situation)Tendency to make surface changes without applying principles properly (customizing to suit the situation) Failure to tie improvement initiatives to Company Business ObjectivesFailure to tie improvement initiatives to Company Business Objectives Short-Term Thinking at the Expense of Long TermShort-Term Thinking at the Expense of Long Term Lack of Plans/Methods to Engage All EmployeesLack of Plans/Methods to Engage All Employees Lack of Standardized Work With Metrics and AuditsLack of Standardized Work With Metrics and Audits

16. www.emsstrategies.com Copyright EMS Consulting Group, Inc. 2010 Key Ingredients of Culture Change Learn By Doing Education Organizational Structure Participation and Ownership Accountability / Metrics Committed, Knowledgeable Leadership How do we get to this point?

17. www.emsstrategies.com Copyright EMS Consulting Group, Inc. 2010 Tools to Increase Participation and Ownership Kaizen BoardKaizen Board 5 Whys5 Whys Standard Work Sheet w. AuditsStandard Work Sheet w. Audits Visual Performance MetricsVisual Performance Metrics

18. www.emsstrategies.com Copyright EMS Consulting Group, Inc. 2010 Kaizen Board

19. www.emsstrategies.com Copyright EMS Consulting Group, Inc. 2010 The Five Whys Source: Peter R. Schultz, The Leaders Handbook, McGraw-Hill, 1998

20. www.emsstrategies.com Copyright EMS Consulting Group, Inc. 2010 Standard Work Sheet

21. www.emsstrategies.com Copyright EMS Consulting Group, Inc. 2010 Metrics Drive Accountability Performance metrics should: –Support the companys strategy –Be relatively few in number –Be mostly non-financial –Be structured to motivate lean behavior –Be simple and easy to understand –Measure actual results versus goals –Measure processes rather than people –Be timely –Be visual HourPlanActual 16025 26072 36052 46076 56049 66055 76044 86086

22. www.emsstrategies.com Copyright EMS Consulting Group, Inc. 2010 Questions? Email: darrend@emsstrategies.com