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LeanSigma Fundamentals

LeanSigma Fundamentals. Module Outline. Lean Basics Six Sigma Basics Theory of Constraints Value Stream Map and Analysis. The Value of Time. = Non-Value-Added Time ( WASTE ). = Value Added Time. Disassemble. Transport. Waiting. Re-Install. Machine. Machine. Remove From Ship.

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LeanSigma Fundamentals

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  1. LeanSigma Fundamentals

  2. Module Outline • Lean Basics • Six Sigma Basics • Theory of Constraints • Value Stream Map and Analysis

  3. The Value of Time = Non-Value-Added Time (WASTE) = Value Added Time Disassemble Transport Waiting Re-Install Machine Machine Remove From Ship Set-up Inspect Transport Start Finish Time Repaired Component Broken Component • Value-Added time is only a very small percentage of the total Time

  4. Seven Types of Waste * 1) Over-production 2) Inventories 3) Producing Defective Products 4) Over-processing 5) Waiting 6) Motion 7) Transportation *Taiichi Ohno

  5. Why do “Lean”? Lean means: 1/10th the in-process work Rapid response capability Increased capacity Shorter overall cycle times Lean does not happen overnight - requires continuous application

  6. 5S Workplace Organization • Sort/Scrap • Eliminate what is not needed • Situate/Straighten/Simplify • A place for everything and everything in its place • Scrub/Ship Shape/Shine • Cleaning and looking for ways to keep it clean • Standardize/Systemize • Develop and document common methods and work practices • Sustain • Practice 5S and develop good habits • Look for improvements

  7. What is “Six Sigma”? “Six Sigma” is: First, a statistical measurement (6s) Second, a business strategy Third, a philosophy for breakthrough thinking.

  8. What is “Six Sigma” performance? “Six Sigma” is an optimized performance level approaching zero defects in any process - whether it produces a product, a service or a transaction. It means 1st-time perfect quality. This requires having a common focus on excellence throughout the organization.

  9. Why “Six Sigma”? Hey, 99% is good enough right? Well 99% means: 20,000 lost postal mail items per hour. 15 minutes of unsafe drinking water per day. 2 long/short landings per day at a major airport. 5000 incorrect surgical operations per week. 7 hours of lost electricity per month. 20,000 incorrect prescriptions per month.

  10. Constraints and Barriers • A constraint is any resource whose capacity is less than the demand placed upon it • Eliyahu Goldratt A barrier is a restriction or other block to increases in output

  11. STEPS TO CONSTRAINT MANAGEMENT (From The Goal by Eli Goldratt) 1. Identify - What’s the constraint? 2. Exploit - Utilize all resources to balance workloads 3. Subordinate - Focus non-constraints towards supporting the constraint 4. Elevate - Apply Lean 5. Repeat Step 1 - The constraint has probably moved

  12. What is Value Added (VA)? Any step or activity in a process is considered VALUE ADDED (VA) if it meets ALL of the following: 1. If the customer wants it, AND 2. If it changes the form, fit or function of the product or service, AND 3. If it is done right the first time (i.e., not rework).

  13. Non-Value Added Examples Any activity that does not meet all 3 criteria of Value Added activity • Examples: • Setup time • Queue time • Inspections and rework • Status meetings • Planning time • Interruptions • Data collection and metric logging IN MOST CASES, NVA ACTIVITIES CONTRIBUTE 50-80% OF THE CYCLE TIME

  14. What is a Value Stream? • Observe and Walk the Current Process • Draw Spaghetti Map (Part & Person) • Develop a Flowchart/Process Map of Current Process • Gather Other Pertinent Data • Walk Distance, Hand-offs, Sign-offs, etc. • That sequence of all activities that contributes to providing customer value Current State Evaluation

  15. Spaghetti Diagram • Mechanic • Material

  16. Shop 31 Pump RRC Section High Level Value Stream Map

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