1. Vital Links: Lean, Six Sigma and Change Management
The Lean Enterprise
Vital Links: Lean, Six Sigma and Change Management
Welcome and introductions. Allow 45 minutes to 1 hour to cover this material.
Lean Foundations
Continuous Improvement Training
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2. Learning Objectives
Explore the component parts of a Continuous Improvement Process (CIP) and how Six Sigma, Change Management and Lean methodologies work together within the DMAIC problem solving process.
Examine the importance, benefits and integration of ‘Lean Thinking’ to help achieve Company objectives and operational strategies.
Explain the need for providing more detailed Lean tools.
Provide additional resources for self study.
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3. ? N: Improvement What is the Importance of doing better (CIP)?
Need for
Improvement
Achieve Process Excellence
Address Process Summary Analysis
(Most operations exhibit 15% - 30% waste!)
Differentiate brand/ market/ service/ value
(i.e. John Crane, Wal-Mart, Maytag, Costco …)
Economic Benefits (reduce costs)
Enhance Safety, Improve Quality
Speed to Market (Total Cycle Time reduction)
Employee Satisfaction
Customer Delight ! N:
(Need)
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4. What are some more benefits?
- Ability to attain Better Caliber, High Profit Customers
- Identification of “Shining Stars” within the Organization
- Less Safety related Incidents, Accidents and Downtime
Through Safer Operations and incorporation of workplace
organization (6S) a Reduction of Liability Insurance
Premiums FY20xx (5% to 15%)
Reduction of COPQ - rework and scrap
(labor and material savings and associated benefits)
- Trained Team Leaders: 6S, Green/ Lean Belts, Black Belts
- Generation of ‘Mistake Proofing’ Ideas/ Processes
Realization of $15,000 to $150,000 (or more) cost
savings per Black Belt/ Green/ Lean Belt project
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5. What are some more benefits?
- Better response to ever increasing Customer Demands
- Shorter Lead times, Less Inventory
- Less Debt/ reduced carrying charges/ COGS
- Continually decreasing Set-up times (increased capacity)
- More floor space for production
Better reliability, maintainability and utilization
of equipment
- Longer equipment life
Reduction of Supply Partners and reduction in
associated SCM administrative costs
More satisfied employees
Less tardiness, absenteeism, turnover
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6. $ What are some developmental elements? Safety 6s Lean
Executive Sponsorship
Metrics focused on results
important to the customer
and with the highest
potential
for adding hard
dollars
to the bottom line
(DMAIC)
Disciplined systematic
approach designed to
maximize results
Safety 6s
Lean
“Lean Belt’s” $
Quality
Speed
Project Reviews 6S
Project Leaders
“Green Belt’s”
Change Management
Safety First ! Proactive Workforce
Safety and 5S together:
Integrated and aligned
people and processes
CAP
Prevention is
the Key
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Trained “Champions”
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7. What are the 3 components comprising CIP? I P O
Voice of the Customer
Policy Deployment/ SOX / ISO
Visual Management
Supplier Quality
Process Capability
SOPs/Standard Work
Product Assurance (SPC, RCCA)
Communication
Team Dynamics
Turnover Rate
Cellularization
One Piece Flow
Manpower
Setup SOPs/ SMED
Maintenance SOPs (TPM)
Cell Cleanliness (6S)
Total Employee Involvement (TEI)
Measurement Systems
PPM
COPQ
Quality
S y First Pass Yield
Six Sigma
Setup
Labor
Cost
Space
Inventory
Process
Product
Change Management
Process Excellence
In-Process
Storage
Throughput
Travel (Material)
Lean
Labor
Delay
Delivery
Capacity
Lead Time
Setup
Kanban
Process
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8. How do the 3 components come together?
The Lean Enterprise (including 6S)
Methodology (philosophy and rich tool set) that is particularly focused on identifying and eliminating waste and improving workflows
WIP, Lead Time, Waste & Wasted Motions
Change Management
Methodology for assuring that change is sustained within organization
“Positively affecting the Continuous Improvement culture”
Six Sigma
Methodology for reducing variation and driving solutions of any existing process (using data with graphical and statistical analysis)
Yield, Cycle Time, Re-Work
“Six Sigma / Change Management/ Lean L-I-N-K”
When done in concert - powerful combination
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9. Other subjects touched on:
What is the presentation ratio of Topics/ Subject Matter within typical CIP training? (% material content)
Green Belt, 2 weeks
Black Belt, 4 weeks
Six Sigma
(40%)
Lean
(40%)
Change
Management
(20%)
Other subjects touched on:
Project Management, Facilitation/ Communication/ Presentation Skills, Report Writing and use of statistical software packages: i.e. Excel, Mini-Tab
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10. What are some CIP training topics
What are some CIP training topics? (A sampling of techniques/ tools taught)
Project Charter
Decision Making
XY Matrix
Process Capability
SPC/ FMEA/ DoE etc
Change Management
Addressed in typical GB/ BB curriculum:
Some topics are addressed in both: 6S
Kaizen
Takt Time
Mistake Proofing
Process Mapping
TPM
Quick Change-over
Kanban
Value Stream Mapping
Visual Management
Standard Work
Others addressed in ‘Lean Enterprise’
modules only:
(single point lessons, more detailed)
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11. What is Six Sigma about? 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 reduce variation at all levels
achieving tangible results of cost savings, employee,
customer and stakeholder satisfaction.”
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12. What is the “DISCIPLINE” of Six Sigma?
Measure
Analyze
Improve
Control
Quantify
Define
Project Selection
Team Formation
Identify CTXs Y
Define Process Capability
Validate Measurement System
Define Defects
Baseline
Set Goals
Identify x’s
Find and Confirm
vital few x’s
Pilot Solution
Y = f (x)
Ensure Solution
is Sustainable
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13. What is the focus of Six Sigma? Variation reduction:
Six Sigma attacks process variation
Six Sigma creates capable and predictable processes
Six Sigma is about measuring and improving how close we come to delivering on what we planned to do
Six Sigma does one thing…
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14. What are some Six Sigma Tools?
Process Map
X - Y Matrix
Measurement System Analysis
Capability Analysis
Descriptive Statistics
Graphical Techniques
Box Plots
Histograms
Scatter plots
Time Series Plots
Run Charts
Pareto Charts
Check Sheets
Analysis of Variance
Correlation
Regression
Inferential Statistics
Central Limit theorem
Confidence Intervals
Failure Modes and Effects Analysis
Multi - vari Studies
Design of Experiments
Fractional Experiments
Full Experiments
Response Surface Methods
Analysis of Means
Transformations
Sample Size Selection
Fishbone Diagrams
Hypothesis Testing
F - test. T - test
Chi - square test
Tests for Normality
Tests for Equal Variances
SPC Charts
Control Plans
DFSS
Statistical Tolerancing
Cover just a few tools …
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15. What is Change Management about?
- Change acceleration is a process to ease acceptance of new ideas. Effective Change Management assures that improvement initiatives remain in force and that organizations don’t revert back to the old ways (methods).
“Ensures that process and system improvements are permanent, gains are realized, proven effective and continuously improved.”
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16. What is the Change Acceleration Process?
Leading Change
Share Need
Shape Vision
Get Buy-in
Current State
Transition State
Improved State
Make it last
Monitor Progress
Changing Systems & Structures
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17. What are the steps for Managing Change?
Leading Change
Give people someone to follow – by you and your Champions actions.
Shared Need
Create an imperative to act now. Pass this on to others.
Shape Vision
Be precise about what you want to achieve and and make sure it is widely understood and shared.
Get Buy-in
You must involve people and pass on your enthusiasm so that once you start another project the change is sustained.
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18. Steps for Change (Cont.)
Make it Last
Ensure that all influences to confound or support change are controlled.
Monitor Progress
Ensure that you are measuring effect not effort. Further publish progress
Finally:
Changing Systems and Structures
Making sure that management practices (Staffing, development, rewards, measures, communication and organizational design) are used to compliment and reinforce change .
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19. What are the elements to making change last?
Leading Change
Ability to
adjust
Understanding
Reflection/
integration
Clear path
forward
Making
change
last
Motivation/
energy
Ongoing support/
commitment
Clear
Continuous
Communication
Changing systems
& structures
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20. What is Lean about ? 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.”
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21. What is the Alignment of Lean w/ DMAIC?
Define
Measure
Analyze
Improve
Control
6S activities
Inventory Accuracy
Takt Time
Value Stream Analysis
Line Balance
Standardized Operations/ Standard Work
Set-up Reduction
Visual Management/ Control
Kanban/ POU
TPM
Poka-Yoke
Lean Approaches Align with D-M-A-I-C
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22. How does Lean fit under D/M A I(*m) C ?
Define
Business Case
Lean Assessment
Measure
I.D. Waste, CTXs, Cost Savings
Analyze
Scope Relevant
Improvement
Opportunities
I.D. Project Areas/Teams
Improve
Control
Estimate
New Capability
Mistake Proof
Define
LEAN projects STILL NEED DATA !!
Lean projects, such as KAIZEN, require a project charter (quantification)
and follow DMAIC. Also, need metrics at improve phase to assure and sustain gains. Done quicker during the Kaizen event.
Pilot / Assess
Impact (*measure)
Institutionalize
Particularly Applicable to “Agile” Manufacturing
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23. What is the focus of Lean? Identification and elimination of waste
Lean creates value by eliminating waste and aligning processes
Lean creates standardized processes
A means of revealing other projects which may require ‘DMAIC’ problem-solving methodologies
Lean does another thing …
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24. What are some Lean Tools?
One piece flow
Pull production system
Level loading production
Cycle time reduction/ Set-up reduction
Aligning processes to customer demand (Takt-Time)
Mistake proofing
Elimination of the 7 elements of waste
Visual Management/ Visual Control
6S (5s + safety)
Value vs. Non-value added activities
Kaizen Activities
Best Practice Sharing
Cover a few of the tools …
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25. Six Sigma (GB, BB, MBB project applications)
Do all methodologies incorporate DMAIC?
Yes ! … time between phases may vary however Lean
Define
Six Sigma (GB, BB, MBB project applications)
VARIATION
Measure
WASTE 6S
Analyze
Workplace organization
Improve
Rapid Implementation of Solution
Driving The Lean Enterprise means utilizing all technologies available. Time between DMAIC phases may be dependent on several factors: which phase you are in and what tools you are utilizing, how big the project is and maturity of the team in problem solving… The point is all improvement methodologies follow the same process.
Control
Problem Solving/ Root Cause and Corrective Action
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26. Why the Need for additional Lean material?
Changing business climate …
Increased expectations of performance:
Operate in a higher standard of HS&E requirements.
(Safety)
Produce product and deliver services (processes) with Six Sigma capability.
(Quality)
Produce in smaller quantities with faster delivery turnarounds.
(Speed of execution)
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27. When would a team use The Lean Enterprise information (modules)?
To strengthen already existing CIP vision, strategies, methodologies, projects …
__________________________________________________________________
Lean Enterprise (LE) is an additional set of foundational tools and techniques that teams
utilize to identify and eliminate waste and wasteful practices. They were developed to be self-taught (facilitated) by a Black Belt.
Adapting LE creates standardized processes
A means of revealing other projects which may require ‘DMAIC’ problem-solving methodologies
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28. How does adopting ‘Lean Thinking’ fit into our Business Strategy?
Lean application opportunities are identified through baseline assessment efforts (e.g. – CIP assessments, Quality audits, Internal audits, SOX, ISO audits et al)
Lean enhances understanding of current operating conditions, and through Value Stream Analysis, helps determine the areas and sequencing of improvement initiatives
With its ‘Process Analysis’ mindset - The Lean Enterprise, as part of CIP - integrates the strategic Corporate strategies around Process Excellence, Organizational Capability and Organic Growth
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29. How does adopting The Lean Enterprise principles help the Company?
Lean Enterprise (LE) emphasizes prevention of waste: any extra time, labor or material spent producing a product or service that doesn’t add value to it.
LE can help reduce costs, achieve just-in-time delivery, and shorten lead times.
LE allows production of a wide variety of products and services, efficient and rapid changeover, efficient response to fluctuating demand, and increased quality.
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30. How does The Lean Enterprise help our Customers?
Lean Thinking facilitates streamlining the front end of the business with transactional Kaizen events and frictionless e-business
We add value to customer relationships through customer-focused process improvement and joining in our customer’s process improvement initiatives
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31. How does The Lean Enterprise help our Customers?
Through CIP (Lean, Six Sigma, Change Management), we strive to deliver the right product, at the right time, at the right price, with perfect quality every time.
We use on-time delivery, lead time and quality metrics to measure our performance
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32. How does The Lean Enterprise help our Suppliers?
Developed to transform key suppliers into our long-term partners and leverage their capability
___________________________
Going Lean creates standardized processes. Many of our businesses represent a scorecard to supply partners – measuring their quality, on-time delivery, and other metrics
Increased supplier communication pays off in high efficiency
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33. How does The Lean Enterprise help our Suppliers?
Other SCM elements of the overall approach include:
Supplier Managed Inventory, Kanban and consignment, as well as long term agreements to realize efficiencies and reduce cost targeting point-of-use delivery – significantly improving working capital
‘On-site Supplier Development’ (OSD) work with key suppliers - leading them to become self-directed learning organizations cognizant of incorporating available improvement technologies
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34. Continuous Improvement Process
Putting It All Together
PEOPLE
Driving
Growth Productivity
Results
Continuous Improvement Process
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35. What is the “essence” of CIP
What is the “essence” of CIP? Applying appropriate problem-solving tools for maximum Results!
There is no single approach that guarantees project success. However there are some basics:
Developing Objectives using SMART criteria
Developing a good Plan
Applying tried & tested tools (Six Sigma and Lean)
Getting Employee Involvement (collaborating teams)
Trusting Empowered People - who ACT ON FACT
Utilizing Brainstorming techniques
Encouraging Process Mapping and Process Analysis
Assuring control and mistake proofing
Accomplishing more with less
Celebrating success !
No matter which methodology – or even a combination of both - Emphasize applying tools for results, project completion is the key !!
Group exercise might be to perform a Threat vs. Opportunity matrix (4-up) on Why we need to do CIP??
OR Why they need to do their project ?
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36. How does Lean & Six Sigma drive results? By Pursuing Perfection!
Product and Process Improvement
Direct and indirect cost reductions: COGS
Process Analysis and Improvements: COPQ
Efficient and effective utilization of Resources
Labor contribution (Standard Hours)
Equipment Utilization (OEE)
Material Consumption (Spend)
G&A / Overhead Absorption
Employee Satisfaction
Retainment, Training, Development, Recognition
Stakeholder Delight
ROI, RONA
No matter which methodology – or even a combination of both - Emphasize applying tools for results, project completion is the key !
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37. by Barbara Wheat, Chuck Mills, Mike Carnell
Where can I learn more about Lean Six Sigma ? (Call Jay Watson ) These 2 books are quick reads…
Leaning into Six Sigma
(paperback)
by Barbara Wheat, Chuck Mills, Mike Carnell
The Gold Mine
by Freddy Ballé and Michael Ballé
The Gold Mine: a Novel of Lean Turnaround deftly weaves together the technical and human pieces of implementing lean manufacturing in an engaging story that readers will find both compelling and instructive.
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38. Vital Links: Lean, Six Sigma and Change Management
The Lean Enterprise
Vital Links: Lean, Six Sigma and Change Management
Lean Foundations
Continuous Improvement Training
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