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Improve your Baldrige Package using Lean Six Sigma

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Title: Improve your Baldrige Package using Lean Six Sigma


1
Improve your Baldrige Package using Lean Six Sigma
  • Leon Spackman
  • LSS MBB, PMP
  • PMC Solutions
  • A Business Process Management Company

2
Overview
  • What is Lean Six Sigma?
  • How does LSS apply to the Baldrige criteria?
  • LSS basic tools
  • Summary

3
How Did We Get Here?
  • Quality focused on manufacturing and Product
    improvement
  • Deming, Juran, Crosby
  • QA/QC, Quality Circles, Zero Defects
  • Emphasis changed to Process management
  • TQM
  • ISO 9000
  • Malcolm Baldrige criteria

4
How Did We Get Here?
  • Concurrently, Process Improvement methodologies
    created
  • CMM/CMMI
  • Lean
  • Six Sigma

5
What is Lean?
  • Process improvement methodology developed in
    manufacturing (Toyota Production System has led
    the way)
  • Focuses on value to the customer by eliminating
    waste in the process
  • Increases speed in our processes
  • Effective in both service and manufacturing

6
Lean Fundamentals
  • All processes should be Pull, not Push
  • PullDetermined by customer demandonly produce
    what is requiredincluded just-in-time
    inventories
  • PushDetermined by processproduce what we think
    will be needed
  • Defects are not Made and/or Passed
  • Defects are prevented when possible, but never
    moved to the next step in the process

7
Lean Fundamentals
  • Eliminate Waste
  • Look early and often for waste
  • Anything that does not add value to the
    product/service
  • Mistake Proof your Processes
  • Creating ways to eliminate any chance for error
    or any error stand out
  • Physical restrictions, visual cues, templates,
    workflow order

8
Lean Fundamentals
  • Level Balanced Production
  • Design daily workload based on customer demand
  • Minimize non-value-added steps and optimize
    resources
  • Multi-skilled employees perform more than one
    task

9
Take a Closer Look at Waste
Overproduction Producing too much producing too
soon batch processing
Intellect Failure to fully utilize the time and
talents of people lack of training no avenue
for suggestions
Transportation Any nonessential transport or
handling
Inventory High supply stores finished product
stores in-work materials
Motion Any motion that does not add value
chasing parts, signatures, tools, etc
Waiting Waiting on parts or documents, waiting
for other workers or a machine
Defects Any rework errors
Extra Processing Adding inspections approvals
reviews
10
Challenges to Identifying Waste
  • Todays problems are the results of
    yesterdays solutions.
  • --Peter Senge
  • In many cases, we unknowingly engineered
  • waste into the process…we are used to it
  • being there
  • Need to know how and where to look
  • Must look at our work through a process lens

11
Identifying Waste
  • Waste looks like
  • Clutter
  • People waiting
  • Overflowing In-Boxes both email and the one on
    the desk
  • Waste looks normal
  • Waste is all around--looks common to the
    workplace
  • Need to recalibrate your eyes to see waste
  • Waste feels chaotic
  • Hurry up and wait
  • Frustrating
  • Fire drills

12
Lean Project Steps
  • Form and train team of experts
  • Map process
  • Gather data and identify waste
  • Identify root cause and solution
  • Implement solution
  • Measure results

13
Lean Summary
  • Understand your process
  • Focus on reducing waste
  • Do only what adds value
  • Do things right the first time
  • Continuously Improve

14
What is Six Sigma?
  • A Philosophy
  • Customer Critical To Quality (CTQ) criteria
  • Fact-driven, measurement-based, statistically
    analyzed prioritization
  • Controlling the input process variations--
    yields a predictable product
  • Relentless pursuit to drastically reduce
    variation and manage whatever variation is left
    over
  • Critical and analytical thinking to solve
    problems
  • A Quality Standard and Level
  • 6s Zvalue of 6 3.4 DPM (DPMO) 1.5 Cpk
    2.0 Cp 99.99966 FPY

15
What is Six Sigma?
  • A Structured Problem-Solving Tool/System/Approach
  • Phased project Define, Measure, Analyze,
    Improve, Control (DMAIC)
  • Common language definitions for verifying and
    solving problems
  • A Program
  • Dedicated, trained Black Belts, Green Belts,
    Champions, Master BBs
  • Prioritized projects with teams - Process
    participants owners
  • Program reviews, Steering Committee

16
Six Sigma Methodology
17
Define Your Process
  • Ensure everyone understands what your process
    does
  • Identify customers
  • Identify who owns the process

18
Measure
  • Decide what you need to measure
  • Errors
  • Cycle time
  • Input/supplier problems
  • Identify where the data is located
  • Identify how and when it will be collected
  • Assign responsibility to gather data
  • Link to customer requirements

19
Process Capability/Baseline
  • Establishes a baseline of current performance
  • Helps you understand your process
  • Helps to know what direction you need to go

Current 95 not meeting customer requirements
Future 95 meeting customer requirements
Customer Requirement
20
Analyze
  • Use the data gathered to identify root causes
    (the vital few)
  • Solve process problems once and for all
  • Dont chase after symptoms
  • Tools
  • Fishbone diagram
  • Statistical tests (another discussion)

21
Improve the Process
  • Select improvement options based on root causes
  • Use decision matrices to select best options
  • Implement and test

22
Control Your Process
  • Mistake proof your process
  • Can only be done one way
  • Automatic notification when there are problems
  • Statistical process control
  • Continue to measure key indicators
  • Watch for shift and drift tendency
  • Adjust as necessary

23
Continuous Improvement
  • Process improvement not a linear process
  • Never really ends
  • Journey not a destination

Define
Control
Measure
Improve
Analyze
24
Six Sigma Review
  • Focuses on reducing variability
  • Extensive data and study of processes to find the
    root cause
  • Focused on prevention
  • Based on D-M-A-I-C
  • Extensive training

25
Lean Six Sigma Combined
  • Combination of thought and tools of both
    methodologies to improve process cycle time,
    reduce waste, minimize variation, and improve
    customer satisfaction.

Lean
Six Sigma

Lean Six Sigma Application
26
LSS and Malcolm Baldrige
  • Why do I care about how LSS relates to Malcolm
    Baldrige?
  • Do I need it?
  • How will it help?

LSS is a process improvement methodology that can
greatly enhance the effectiveness and efficiency
of your Malcolm Baldrige program.
27
LSS and Malcolm Baldrige
28
LSS and MB Cat 4, 5 and 7
LSS
29
LSS and MB Cat 1, 2, and 3
LSS
30
Basic LSS Tools
  • SIPOC
  • Process Mapping
  • Value Stream Mapping
  • Kaizen Events
  • 5S
  • Data Plan
  • Pareto Chart
  • Histogram
  • Statistical Analysis
  • Fishbone Diagram
  • Solution Matrix
  • Story Boards
  • Control Plan/Charts

31
Processes and LSS
Y f(x) Y is equal to the function of X or Y
is only as good as the input and process of X
X
X
X
X
  • Inputs and processes (X) have a profound effect
    on the
  • output (Y)
  • Controlling the inputs, their interactions and
    the process
  • will improve the output

MB Categories 1 2 3 4 5 6 7
32
SIPOC Diagram
Inputs
Outputs
Supplier
Process
Customer
  • Who provides
  • Raw Materials
  • Information
  • Equipment

Equipment, materials, or information you use in
your process
What you produce in your process
  • Internal
  • External
  • Stakeholders
  • Requirements

MB Categories 1 2 3 4 5 6 7
33
SIPOC DiagramsDos and Donts
  • Dos
  • Do focus on activities that
  • directly add value to customers
  • Do stay at a high level
  • Do involve a mix of people
  • Don'ts
  • Dont dismiss inputs and
  • outputs from the process at
  • this point
  • Dont just look upon your core
  • processes as unchangeable
  • Dont worry--you can come
  • back to this later in your
  • problem solving process

Taken from The Six Sigma Way Pande, Neuman,
Cavanagh - Page 172-173
MB Categories 1 2 3 4 5 6 7
34
Process Mapping
  • Before we can manage processes, we must identify,
    define, and centralize them
  • Provides a clear, visual way to examine processes
  • Helps identify redundancies, waste, and weaknesses

MB Categories 1 2 3 4 5 6 7
35
Why Map Processes?
The way you think it is.
What the customer expects, and is willing to pay
for.
The way it really functions.
MB Categories 1 2 3 4 5 6 7
36
Micro-Level Processes
Detailed steps that must be followed in order to
produce a product/result.
MB Categories 1 2 3 4 5 6 7
37
Macro-Level Processes
  • Mid level detail showing how an overall task
    or deliverable is accomplished.

MB Categories 1 2 3 4 5 6 7
38
Business System--High Level Relationships Across
Functions
MB Categories 1 2 3 4 5 6 7
39
Process Symbols
Reference Document
Boundary
Multiple Documents
Task
Data Base
Decision
Connector
Embedded Process
MB Categories 1 2 3 4 5 6 7
40
Putting It All Together
Websites Regulations Policies
Start Process
Reference Document
Task
Data Base
Embedded Process
Decision
End Process
MB Categories 1 2 3 4 5 6 7
41
Interactive Electronic Map
42
Online Electronic Document
43
Mapping Tips
  • Keep it simple but include all necessary detail
  • Start every task with an action verb
  • Ensure every decision leads to yes and no
    outputs
  • Use only the simplest standard flowcharting
    symbols
  • Walk the lineverify the process

MB Categories 1 2 3 4 5 6 7
44
Benefits of Process Mapping
  • Compliance, registration
  • Employee understanding
  • Standardizationreduce variation
  • New employee training/orientation
  • Customer satisfaction
  • Improved financial performance
  • Operational excellence
  • Foundation for continual improvement

MB Categories 1 2 3 4 5 6 7
45
Value Stream Mapping (VSM)
  • Expanded process map
  • Includes flow from beginning to end usually
    including the supply chain
  • Documents time and cost for each step
  • Makes a judgment on value to the customer (value
    added vs. non-value added)
  • Tracks value and non-value time

MB Categories 1 2 3 4 5 6 7
46
Building a Value Stream Map
Housekeeping Processes
Transactional Support Processes
Process Data Information
NVA Non-value Added Time VA Value Added Time
MB Categories 1 2 3 4 5 6 7
47
Kaizen Event
  • Tiger TeamShort term commitment
  • Quick wins
  • Normally one week long
  • Day 1 Train and map the process
  • Day 2. Gather data and find root cause
  • Day 3. Find solution
  • Day 4. Implement and measure
  • Day 5. ControlHave a party

MB Categories 1 2 3 4 5 6 7
48
5Ss
  • Sort Get rid of what you dont need
  • Set in Order Organize create a place for
    everything
  • Shine Clean everything
  • Standardize Set standards across the
    organization
  • Sustain Make sure the solution sticks

MB Categories 1 2 3 4 5 6 7
49
Data Plan
  • Identify what needs to be measured
  • Key Performance Indicators (KPIs)
  • Link to Strategic Plan
  • Leading/lagging indicator
  • What decisions will be made
  • Identify how you will measure it (how often, who
    is responsible)
  • Identify how it will be graphed

MB Categories 1 2 3 4 5 6 7
50
DATA COLLECTION PLAN
UNIT DATE
51
Pareto Chart
  • A sorted Bar Chart, with the bars arranged in
    descending order from left to right
  • Used to identify most common occurrences or tall
    poles
  • Identify pain in your process
  • Prioritize projects/issues
  • Based on the 80/20 rule

MB Categories 1 2 3 4 5 6 7
52
Pareto ChartExample
MB Categories 1 2 3 4 5 6 7
53
Pareto Chart--Example
MB Categories 1 2 3 4 5 6 7
54
Histogram
  • Frequency plot of large amounts of data
  • (at least 50 data points)
  • Data must be continuous (measured on a
  • continuum, i.e. time, height, weight etc.)
  • Determine range and class intervals
  • Look for
  • Shape of distribution curve
  • Mean
  • Range
  • Standard Deviation
  • Customer Requirements

MB Categories 1 2 3 4 5 6 7
55
Histogram
Customer Requirement
Mean 8.5
Range 15 Std Dev 3.2
MB Categories 1 2 3 4 5 6 7
56
Statistical Analysis
  • Descriptive Statistics
  • Mean, mode, median
  • Range, variance, standard deviation
  • Inferential Statistics (Probability)
  • Hypothesis testing
  • T Tests
  • Chi Square
  • ANOVA
  • Correlation/Regression analysis

MB Categories 1 2 3 4 5 6 7
57
Fishbone Diagram
MB Categories 1 2 3 4 5 6 7
58
Fishbone Diagram-Example
MB Categories 1 2 3 4 5 6 7
59
Fishbone Example
60
Solutions
MB Categories 1 2 3 4 5 6 7
61
Selecting the Best Solution
  • Identify and evaluate possible solutions
  • Screen potential solutions as necessary,
    combine, add, delete, and/or modify them
  • Evaluate against (weighted?) criteria
  • Other important considerations
  • Risk
  • How likely will the event occur
  • Effect if it does occur
  • Barriers to solutions
  • Legal restrictions
  • Cultural

MB Categories 1 2 3 4 5 6 7
62
(No Transcript)
63
Story Board
MB Categories 1 2 3 4 5 6 7
64
Control Plan
  • Continue to measure key indicators
  • Set parameters
  • Watch for shift and drift
  • Make corrections as needed

MB Categories 1 2 3 4 5 6 7
65
Shift and Drift
  • Processes have a tendency to move over time
  • People, materials, equipment all change
  • Shift can be as much as 1.5 standard deviations

MB Categories 1 2 3 4 5 6 7
66
Shift and Drift
Delivery Days
UCL 15 Days
Delivery Example We want to complete all
deliveries in less than 15 days… As a result of a
brilliant LSS project, we succeed!!
One Year Later Hey … what happened??? The
process was working beautifully last time I
checked …
0 3 6 9 12 15 18 21
24
The project is progressing well and you wrap it
up. One year later you are surprised to find
that the population has shifted.
MB Categories 1 2 3 4 5 6 7
67
Summary
  • Lean Six SigmaProcess improvement methodology to
    reduce waste and variation
  • Malcolm BaldrigeEmphasis on category six but
    relates to all
  • Deploy LSS as key part of Malcolm Baldrige
  • Use Lean Six Sigma methodology/tools to manage
    and continuously improve your processes

68
Challenge
  • Perfection is not attainable. But if we chase
    perfection, we can catch excellence.
  • --Vince Lombardi

69
Questions
Leon Spackman PMC Solutions lspackman_at_pmcsolutions
.com (505) 462-3184 (Work) (505) 401-8850
(Cell) www.pmcsolutions.com www.inprocess.com
70
Acronyms
  • CMM/CMMI Capability Maturity Model / Integrated
  • DFSS Design for Six Sigma
  • DMAIC Define-Measure-Analyze-Improve-Control
  • FMEA Failure Mode and Effects Analysis
  • KPI Key Performance Indicator
  • LSS Lean Six Sigma
  • MB Malcolm Baldrige
  • MBB Master Black Belt (highest level of training
    in Six Sigma)
  • NVA Non Value Added
  • QFD Quality Functional Deployment
  • SIPOC Supplier-Input-Process-Output-Customer
  • TQM Total Quality Management
  • VA Value added
  • VSM Value Stream Map
  • 5S Sort-Set in Order- Shine-Standardize-Sustain
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