Guide to Business Improvement Tools

1. Guide to Business Improvement Tools LEAN MANUFACTURING & SIX SIGMA

2. Contents • Overview of LEAN Manufacturing • Overview of Six Sigma • PDCA Wheel • Six Sigma Roadmap • Tool selection guide

3. LEAN Manufacturing • Henry Ford production line to Toyota Production System • Methodology spread across industries and countries • Production activity that is not important to the customer is seen as waste, and to be reduced / eliminated. • Focuses on optimising ‘production flow’ . • Converts ‘push through to sell’ production to ‘pull through by customer demand’ production.

4. PDCA Wheel A foundation tool of LEAN to explain to teams how to make process improvements. Plan the improvement Do the trial Check the results Action the new standard Once the new standard is locked in, further improvement activity can occur

5. Six Sigma ( 6σ ) Created by Motorola in the 1970’s in response to quality criticisms • Heavy on Statistical Process Control and Hypothesis testing • Focus is to reduce defects by reducing process variability • Quality side tools • Acceptance side tools • A 6σ process is 99.99997% accurate (Between three and four defects per million opportunities) Excellence = Quality x Acceptance

6. Six Sigma DMAIC Roadmap $ $ $ 13 Identify & Select Potential Solutions 9 Implement & Control Quick Wins 11 Graphically & Statistically validate root causes 8 Develop data collection plan around key x’s; 12 Practically validate root causes $ -------------------------------Primary Responsibility of------------------------------- Required Financial review (BCS entry) $ Belt PO PL or Mgmt Define Measure Analyse Improve Control A. Project Blitzed added to BCS Pipeline 1 Business Case and draft Charter into Project Pipeline in BCS 5 Validate Measurement System 16 Demonstrate final capability and control plan effectiveness 2 Project Selected and Project Leadership Team Selected I -1 Stakeholder check-in  Q-A Solutions Approved 6 Confirm Current Process Performance 10 Collect data around key x’s 17 Final sign off by Process Owner B. Project Kickoff Move to Investigation Phase 14 Develop Implementation Plan, Control Plans and process control system Project Completed 7 Identify key x’s & Quick wins 3 Check and Learn from previous work End Project Cycle time Start Project Cycle time 18 Share Learnings; Replication , Report, Poster I -2 Stakeholder check-in  Implementation Approved 4 Align Team & confirm Project Charter 19 Celebrate Improvements and RecogniseTeam C. End Investigation Cycle time Cycle time 1 D Stakeholder check-in  Charter Confirmed M Stakeholder check-in  A Stakeholder check-in  15 Implement Approved Solution(s) and Control Plans Rev v10 A4 2007.08.19

7. Six Sigma / Lean Six Sigma Tools to Use Desired Outcomes Lean Tools to Use Project Chartering, Value Stream, Theory Of Constraints, Yield, Rolled Throughput Yield Confirmed Charter Mobilised Team Engaged Stakeholders ACtE, VOC, CTQ, SIPOC, In/Out, Project Charters Define Process Characterised Data Validated Capability Analysis on Y output Interview & Observation, 5S, Time & Motion, VSM VA / NVA, Flow Charting, Base Line Analysis, Spaghetti Diagrams. Measure ACtE, MSA,XY, FMEA, Process Map, Data Collection Plan Takt Time, Multi Cycle Analysis, Root Cause ID, Defect Analysis Uncover Root Causes Analyse ACtE, Hypotheses testing, Multi Vari, Control Charts, FMEA Solutions Selected Implementation Plan Committed Stakeholders ACtE, DOE, BOA, Training, Change Mgmt Improve SMED, Quick Changeover, Load Balancing, Kanbans, Simulation Multiskilling, Mistake Proofing Transition to Owner Process Control System Knowledge Sharing 5 S Discipline, Standard Work, On time delivery, Perform to Takt Time ACtE, Control Plans, SOP, SPC, Control Charts, Action Plans Control Aligning Commitment towards Excellence (ACtE) supports all stages of the process!