ASMC PDI Introduction to Lean6

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ASMC PDIIntroduction to Lean6

• Keith Furman
• Program Director, Lean6
• Michael Moxley
• Lisa Iselo
• Lean6 Black Belts
• Defense Finance and Accounting Service
• May 26, 2009

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DFAS Lean6 Definition
Lean6 is our fact-based approach for improving
our business processes and delivering best value
to our customers. Leadership Council - January
16, 2004
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Lean6 Methodology
Identify Opportunities
Prioritize Options
Achieve Results
Execute Plan
Plan Project
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Key Components of Lean6
LEAN Reduce Waste
SIX SIGMA Reduce Variation
Purpose
Flow Focused
Problem Focused
Focus
Effects
Improved cycle time Less waste Leaner process
Improved output quality Uniformed output Less
variation
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Difference Between 3 and 6 Sigma
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The Big Picture
Performance Gap
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Data

Analysis
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Transactions
Today
Soon
Categories
Big-Hitters
Achieve Results
Root Cause
Analysis

• Projects
• Black Belt
• Green Belt
• Just Do Its

Project Identification
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Lean6 Methodology
Identify Opportunities
Prioritize Options
Achieve Results
Execute Plan
Plan Project
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Identify Opportunities
Input
Process
Outputs

• Current state
• Need for change
• Customer needs
• Strategies, goals, objectives

• Metrics of current process
• Process map
• Customer requirements
• Strategy for change linked to goals

• Assess the current process
• Determine customer requirements
• Develop strategies to support change
• Develop team/ sponsor support
• Develop goals/ objectives
• Create climate for change

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PAPR-Co Simulation
A hands-on learning experience
Making the world a better place one paper
airplane at a time
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Flowcharts Telling a Story
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Cross-Functional (Swim Lane) Flowchart
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Gemba

• Gemba (real place) see what is happening with
  your own eyes
• Hints on what to consider
• What workers are doing
• What support staff is doing
• What is happening to the product
• Where are the backlogs
• How to do this well
• Believe you know nothing
• Think in terms of discovering
• Leave bias at the door
• Observe from different perspectives
• Search for attitudes, habits, opinions
• Observe at different times

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PAPR-Co Simulation
A hands-on learning experience
Making the world a better place one paper
airplane at a time
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A View of the Whole Theory of Constraints (ToC)

• Looks at a system as a whole not individual
  parts
• Every system has a goal
• Systems are like chains . . . the performance of
  a system is limited by the weak link (constraint)
• The system optimum is NOT the sum of the
  optimized parts
• ToC ties local decisions to the performance of
  the system

Reference The Goal, Eliyahu Goldratt and Jeff
Cox, 1192
An approach to identify bottlenecks in an
end-to-end process
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Lean6 Methodology
Identify Opportunities
Prioritize Options
Achieve Results
Execute Plan
Plan Project
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Prioritize Options
Input
Process
Outputs

• Prioritized list of target areas
• Cost/benefit analysis

• Understand the process
• Identify the heavy hitters
• Develop cost/benefit analysis
• Determine projects to be considered
• Prioritize projects
• Develop preliminary improvement plan

• Metrics of current process
• Process map
• Customer requirements
• Strategy for change linked to goals

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Why Do We Need Data?

• Perception and Intuition are not always reality
• Paradigms can limit our thought process
• To identify/verify problem areas/bottlenecks
• To understand our processes better (which factors
  are important, which are not)
• To characterize our processes (to know how inputs
  and outputs are related)
• To validate our processes (are they performing
  within the requirements/ specs)

• To evaluate customer satisfaction
• To document our processes and communicate about
  them
• To baseline a process
• To determine the size of the gap between where
  you are and where you want to be
• To see if our processes are improving
• To determine if a process is stable or
  predictable and how much variation is inherent in
  the process
• To determine root causes

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7 Deadly Wastes - Muda
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Value Definitions

• Value added activity
• Customer is willing to pay
• Changes or improves the product
• Non-value added, but necessary activity
• Required by law
• Supports Agency requirements
• Reduces risks, defects, and costs
• Required by a Value Added activity
• Non-value added activity
• Not supported by the above
• These activities are muda

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Value Stream Map and Line Balancing Chart
Value Stream Map with Data
Line Balancing or Takt Time Chart
Takt time Available Time
Customer Requirement
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BREAK!
1515 - 1530
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Pareto Charts

• Pareto Charts
• Bar chart with data arranged quantitatively
  according to frequency
• Helps focus efforts on problems with the greatest
  potential of improvement (heavy hitters)
• Add a cumulative percentage line for greater
  impact
• A simple but effective tool to showcase data
• Construction steps
• Choose a problem and the best measure
• Decide on period of time
• Gather data
• Rank order highest to lowest
• Add cumulative percentage line (recommended)

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Pareto Chart Example
Construct a Pareto chart that shows the
Processing Time by position from highest to
lowest with the corresponding cumulative
percentage line.
RawData
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Lean6 Methodology
Identify Opportunities
Prioritize Options
Achieve Results
Execute Plan
Plan Project
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Plan Project
Input
Process
Outputs

• Team
• Project Plan
• Requirements
• Team charter
• Process maps
• Data Analysis
• Developed Solutions

• Validate the team
• Determine action plan and schedule
• Develop project charter
• Validate the problem
• Confirm key customer requirements
• Develop detailed as-is process maps
• Determine metrics
• Gather and analyze additional data (as needed)

• Prioritized list of target areas
• Cost/benefit analysis

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Causal Analysis
Fishbone Diagram
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How to Construct a Fishbone Diagram

• Step 1 Write a Problem Statement at the head
  of the fish
• Step 2 Choose categories of major bones
• Step 3 For each category, brainstorm potential
  causes
• Step 4 Identify causal chains
• Step 5 Check your logic
• Step 6 Highlight potential root causes

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Fishbone (Ishikawa) Diagram Example
Root cause
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Fishbone (Ishikawa) Diagram Example
Root cause
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Brainstorming

• A method for developing creative causes/solutions
  to problems can be group or individual sessions
• Works by focusing on a problem and deliberately
  coming up with as many causes/solutions as
  possible
• Results are refined through further brainstorming
• Rules
• BE CREATIVE!
• Ask How can we? questions
• Present one thought at a time
• Do not criticize or evaluate any ideas when they
  are being generated
• Build off ideas of others
• Push the envelope, think out of the box

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Affinity Diagram

• Used to discover meaningful groups of ideas
  within a raw list
• Helpful when there are too many ideas, with no
  clear connection
• Typically done on a flip chart with post-it notes
• Steps
• Take a group of individual ideas (perhaps from a
  brainstorming session)
• Rapidly group like items together
• See if smaller groups can fit into larger groups
• See if large sets need to be broken down more
  precisely
• After sorting, create titles for each set

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Lean6 Methodology
Identify Opportunities
Prioritize Options
Achieve Results
Execute Plan
Plan Project
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Execute Plan
Input
Process
Outputs

• Implemented solutions
• Controls
• Defined metrics

• Develop implementation plan
• Implement solutions
• Monitor progress
• Implement controls

• Team
• Project Plan
• Requirements
• Team charter
• Process maps
• Data Analysis
• Developed Solutions

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Implementation Plan

• Identifies tasks and interdependencies
• Identifies when they are due
• Puts a name to the task
• Assigns responsibility
• Suggested format
• Gantt chart

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PAPR-Co Simulation
A hands-on learning experience
Making the world a better place one paper
airplane at a time
14
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Lean6 Methodology
Identify Opportunities
Prioritize Options
Achieve Results
Execute Plan
Plan Project
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Achieve Results
Input
Process
Outputs

• Before and after metrics
• ROI/Benefits
• New metrics
• Project documentation
• Marketing plan
• Recognition/rewards
• Plan for continuous improvement

• Measure results
• Develop final cost/benefit analysis
• Capture and share knowledge
• Recognize achievements
• Develop plan for continuous improvement

• Implemented solutions
• Controls
• Defined metrics

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Plan for Continuous Improvement

• The improvement process is a continuous event
• One project will have an effect on other
  processes
• Identified opportunities in previous phases need
  to be explored and considered for improvement
• This is the next steps of any process
  improvement
• Improvement plan
• Start with prioritized list of projects from
  initial phase
• Present recommendations for continued projects
  for other target areas identified
• Solutions implemented may change list

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Questions?
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