1. Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Tools To Make Waste Visible

2. Pg 1 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Module Objectives By the end of this module, the participant should be able to: Develop a Spaghetti Chart to identify waste Develop a Process Flow Diagram to identify waste Create a Pareto Chart to identify waste Develop a Cause and Effect Diagram to identify waste Utilize Process Reports and Assessments to identify waste

3. Tools To Make Waste Visible Pg 2 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved – Womack, J. P. and D. T. Jones Recall The Five Principles Of Lean Thinking Lean thinking can be summarized in five principles*: Principle 1 – Precisely specify the value of a specific process Principle 2 – Identify the value stream for each process Principle 3 – Allow value to flow without interruptions Principle 4 – Let the customer pull value from the process Principle 5 – Continuously pursue perfection Do we have any volunteers to explain?

4. Tools To Make Waste Visible Pg 3 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved What Tools Exist To Make Waste Visible? Spaghetti Chart Process Flow Diagram Pareto Chart Cause and Effect Diagram -Five Whys Process Reports and Assessments

5. Tools To Make Waste Visible Pg 4 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Recall Types Of Waste Manufacturing And Transactional Types of waste Overproduction Inventory Waiting Transportation Motion Making defects Overprocessing Contributors to waste Unevenness Overburden Current methods and processes

6. Tools To Make Waste Visible Pg 5 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Additional Tools Spaghetti Chart

7. Tools To Make Waste Visible Pg 6 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Spaghetti Chart Obtain a layout of the work area List the steps in the process Draw the path of the process from start to finish on the layout Follow that piece of paper, electronic document, product, or service and “chart” it’s flow, distance traveled, loops, etc. Focus on waste

8. Tools To Make Waste Visible Pg 7 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Example Spaghetti Chart Red Glow Dept. Yellow Glow Dept. Inspection Red Dept. Orange Glow Dept. Yellow Dept. Customer 1 2 3 4 5 6 8 O B S T R U C TI O N Rec/Ship/ Stock 7 O B S T R U C TI O N Not the most optimum of flow for our product/service.

9. Tools To Make Waste Visible Pg 8 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Describe improvement with metrics (before and after): Distance traveled, floor space “saved”, touch points, number of employees, etc. Show Before And After

10. Tools To Make Waste Visible Pg 9 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Additional Tools Process Flow Diagram

11. Tools To Make Waste Visible Pg 10 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Process Flow Diagram Used to make the process visible Could include time spent at each step Could include defect levels at each step Could include Value-Add and Non-Value-Add Identifies opportunities for improvement SIPOCs, Value Stream Maps, Detailed Process Maps are all in the “family” of Process Flow Diagrams Focus on waste Always walk the process.

12. Tools To Make Waste Visible Pg 11 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Basic Structure How many Process or Operation Steps are there? How many Decision Points? How many Measurement/Inspection Points? Where are the Bottlenecks? How many Rework Loops? Good Bad Good Bad Scrap Warehouse

13. Tools To Make Waste Visible Pg 12 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Waste Map Processing Handling Inspect DelayStorageDistanceTime Remarks 1 DescriptionStep 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Team Date Comments Component Operation Activity Analysis Action Study Waste Map.ppt

14. Tools To Make Waste Visible Pg 13 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Additional Tools Pareto Charts

15. Tools To Make Waste Visible Pg 14 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Pareto Chart A descending bar graph that helps to focus on the problems that offer the greatest potential for improvement by showing their relative frequency or size Compare the relative frequency or cost of each problem category List the categories in descending order from left to right on the horizontal axis The height of the bars corresponds to the frequency or cost Pareto Charts – Very useful and used throughout our training.

16. Tools To Make Waste Visible Pg 15 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Pareto Chart Example A = 19 B = 45 C = 12 D = 7 E = 32 F = 5 G = 25

17. Tools To Make Waste Visible Pg 16 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Pareto Chart Solution Where is the greatest improvement opportunity?

18. Tools To Make Waste Visible Pg 17 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Exercise Pareto Chart Given the following data, construct a Pareto Chart Item A, Frequency = 22 Item B, Frequency = 11 Item C, Frequency = 17 Item D, Frequency = 5 Item E, Frequency = 8

19. Tools To Make Waste Visible Pg 18 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Pareto Chart Solution The Pareto can be created in Excel or MINITAB ®.

20. Tools To Make Waste Visible Pg 19 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Additional Tools Cause And Effect Diagram

21. Tools To Make Waste Visible Pg 20 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Cause And Effect Diagram (Fishbone Diagram) Used to allow team to identify and graphically display, in increasing detail, all potential root causes Place problem (effect) in box on right-hand side of chart Draw major cause categories as bones on chart Repeatedly ask why each cause happens Look for root cause that appears repeatedly within or across major causes More later on Cause and Effect Diagrams.

22. Tools To Make Waste Visible Pg 21 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Source Categories For Potential Causes People Do they follow standards? Efficiency acceptable? Are they problem conscious? Are they responsible? Are they qualified? Are they experienced? Are they assigned to the right job? Are they willing to improve? Do they maintain good human relations? Are they healthy? Machines (facilities) Do they meet production requirements? Process capability? Oiling, greasing adequacy? Is inspection adequate? Frequency of downtime and why? Does it meet precision requirements? Unusual noises? Layout adequacies? Are there enough machines/facilities? Are they in good working order? Preventative maintenance schedule?

23. Tools To Make Waste Visible Pg 22 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Source Categories For Potential Causes Material Mistakes in volume? Mistakes in grade? Mistakes in brand name? Are there impurities mixed up? Is the inventory level adequate? How much WIP is there? Where? Is the layout adequate to accommodate materials? Is the quality standard adequate? Method (operation) Are the work standards adequate? Is the work standard upgraded? Is is a safe procedure or method? Does it ensure a good product? Is the method efficient? Is the sequence of work adequate? How is it setup? Is the setup adequate? Is there adequate contact/ communication with the upstream and downstream steps? What method is used to communicate?

24. Tools To Make Waste Visible Pg 23 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Basic Structure Of The C&E Diagram Problem/ Desired Improvement CausesEffect Main Category Measurements Materials People Environment Methods Machines

25. Tools To Make Waste Visible Pg 24 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Level 1 Cause Basic Structure Level 1 Causes Problem/ Desired Improvement CausesEffect Main Category Measurements Materials People Environment Methods Machines

26. Tools To Make Waste Visible Pg 25 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved “Five Whys?” One Approach To More Cause Category Detail Ask why? When presented with an answer, ask why? Add additional levels to the C&E Diagram Repeat step two until you get the real problem or issue identified An Affinity Diagram will also add detail to the Cause Categories.

27. Tools To Make Waste Visible Pg 26 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved The Five Whys Business Process Example The “Five Whys” Method Supervisor:“Why is the sales order being released so late?” Employee:“Because the customer requirements are not entirely known” Supervisor:“Why are the customer requirements not known?” Employee:“Because the proposal was vague and incomplete” Supervisor:“Why was the proposal vague and incomplete?” Employee:“Because the performing organization didn’t participate in creating it” Supervisor:“Why didn’t the proposal team consult with the proper experts?” Employee:“Because we hardly ever talk with those guys” Supervisor:“Why is communication so poor between departments?” Engineer:“Because that is how we always do proposals, and we don’t have a process that encourages us to work together”

28. Tools To Make Waste Visible Pg 27 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Problem/ Desired Improvement CausesEffect Level 1 Cause Level 2 Cause Main Category Measurements Materials People EnvironmentMethodsMachines Basic Structure Level 2 Causes

29. Tools To Make Waste Visible Pg 28 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved MINITAB Generated C&E Diagram

30. Tools To Make Waste Visible Pg 29 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Utilize Process Reports And Assessments To Identify Waste Opportunities Various types: -Present Value Stream Map and Future Value Stream Map -Existing quality reports; Control charts -Product cost -COPQ: Recorded defect and scrap cost/rates -Manufacturing operation or process documents -Current control plans -Standard operating procedures -Manufacturing lead time -Attendance -Safety -Downtime -Preventative maintenance schedules -Expedited transportation -Material shortages -Throughput Yield -Current visual controls

31. Tools To Make Waste Visible Pg 30 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Objectives Review The participant should now be able to: Develop a Spaghetti Chart to identify waste Develop a Process Flow Diagram to identify waste Create a Pareto Chart to identify waste Develop a Cause and Effect Diagram to identify waste Utilize Process Reports and Assessments to identify waste

32. Tools To Make Waste Visible Pg 31 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Trademarks And Service Marks Trademarks of Six Sigma Academy: Breakthrough Change Strategy SM Breakthrough Design SM Breakthrough Software Design SM Breakthrough Diagnosis SM Breakthrough Execution SM Breakthrough Lean ® Breakthrough Sigma Lean SM Breakthrough Six Sigma SM Breakthrough Strategy ® Breakthrough Value Services ® FASTART SM Six Sigma Gold Belt™ SOLVING YOUR BUSINESS PROBLEMS FOR THE LAST TIME SM Six Sigma is a federally registered trademark of Motorola, Inc. MINITAB is a federally registered trademark of Minitab, Inc. SigmaFlow is a federally registered trademark of Compass Partners, Inc. VarTran is a federally registered trademark of Taylor Enterprises

33. Tools To Make Waste Visible Pg 32 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Six Sigma Academy www.6-sigma.com US Tel: (480) 515-9501 US Fax: (480) 515-9507 International Tel: +44-1403-783456 International Fax: +44-1403-218788 8876 E. Pinnacle Peak Road, Suite 100 Scottsdale, AZ 85255