Green Belt Certification Chapter 5

1. Lean Six Sigma for Government Certification Series Green Belt Certification Chapter 5

2. Introduction to Continuous Process Improvement (CPI)DMAIC (CONTINUED)

3. DMAIC in CPIImprove • Improve Stage Objectives • Develop Potential Solutions • Evaluate and develop optimal solutions • Create To-Be value stream maps • Pilot the solution • Confirm project goals and objectives will be met, build a business case for change • Develop a full-scale implementation plan • Purpose • To identify and validate the solutions that will add value for the customer in a more cost effective and efficient process defined by the projects scope. • To confirm benefits of process change. • To prepare to execute full-scale implementation.

4. DMAIC in CPIImprove • Generate Potential Solutions • Refer to Root Causes from Analyze • Lean Six Sigma Techniques • Idea Generation • Brainstorming • Benchmarking

5. DMAIC in CPIImprove • The Lean Manufacturing Philosophy • Muda = Waste: • Anything that uses resources without providing value to the customer (DoD CPI Guidebook) • Eliminate it • 7 Ways to Waste • Poor Quality - Mistakes/Defects • Inventory • Over Production • Unnecessary Process Steps • Transportation/Moving • Waiting/Delays • Excessive Motion

6. DMAIC in CPIImprove • Lean Concepts (George, Rowlands & Kastle, What is Lean Six Sigma?) • Delight Customers • Quality, Speed and Cost (Value) • Voice of the Customer (VOC) • Improve Processes • Work as a Team • Make Decisions Based on Data

7. DMAIC in CPIImprove • Cellular Processing

8. DMAIC in CPIImprove • Error Proofing (Poka Yoke) • Design parts that fit only one way • Warning devices that prevent rather than catch the error • User-Friendly • Simple to Install • Don’t require close attention from employee • Low-cost • Provides instantaneous feedback, prevention or correction

9. DMAIC in CPIImprove • Kanban (Card) • A signal from a customer to a supplier within an organization’s internal operations and/or throughout the entire supply chain . • Triggers the entire supply chain to respond to the customer demand. • Work-order / AFTO 350 Tag

10. DMAIC in CPIImprove • Automated Resource Planning • Material Resource Planning (MRP) • Manufacturing Resources Planning (MRP II) • Maintenance, Repair and Overhaul (MRO) • Enterprise Resource Planning (ERP) • Integrated planning for physical, material and human resources • May include external suppliers

11. DMAIC in CPIImprove • Mixed Model Scheduling • Avoids separate lines • Batches • Match Customer Orders • Requires rapid changeover

12. DMAIC in CPIImprove • Pull • Production or Maintenance on Demand • Customer-Supplier Relationship Internal and External • Reduce inventory while satisfying the external customer • Manage capacity better Supply Push Customer Demand

13. Reliability Centered Maintenance : RCM/RCM 2 DMAIC in CPIImprove Reliability Fact-Based Decision Making Process

14. DMAIC in CPIImprove • Takt Time • German for beat/rhythm • Pull concept for tuning the rate of the process to customer need • Synchronizing Supply and Demand • Computed rate that a process in a value stream should operate at to just satisfy customer demand • Analysis of flow in the process identifies non-value- added steps

15. DMAIC in CPIImprove • Theory of Constraints (TOC) • Developed by Eliyahu Goldratt focus on: • Identifying the system’s constraint • Exploit the constraint to optimize performance • Subordinate all else to the attention on the constraint • Elevate the constraint to reduce its influence • Equipment, personnel, eliminate waste, balance flow • Go back to step one and repeat for new process • Critical Chain (CC): a planning tool that respects constraints across a number of projects or activities.

16. DMAIC in CPIImprove • Value-Added • In the eye of the customer • Three types of Activities • Value-Added • Non-Value-Added • “Necessary” Non-Value-Added • The Goal Identifying and Reducing or Eliminating NVA Activities

17. DMAIC in CPI Analyze Value Added Analysis Can eliminate without impacting customer? Non-value added Required by a Control? Can control be eliminated? Yes Yes Yes No No No Yes Customer request? Yes Eliminate if preceding activity done correctly? Yes No Impact internal customer? Yes No Value Added No Improving internal efficiency Necessary Yes No Non-value added Non-mandatory

18. DMAIC in CPIImprove • Total Productive Maintenance (TPM) • Design products that can be produced with existing equipment • Design machines, tooling and fixtures for easier operation, changeover and maintenance • Train and retain personnel to operate and maintain equipment • Purchase machines that maximize production potential • Design preventive mainte- nance plans that span the life of the equipment

19. Just too much Maintenance

20. DMAIC in CPIImprove • Quality at the Source • A quality philosophy that places responsibility for meeting customer specifications and standards at the point of task accomplishment. • Approaches • Source inspection for purchased components and consumables • Personnel self-inspection of their work and that of previous steps • Poka-Yoke: Design and utilize mistake proof equipment, processes and products.

21. DMAIC in CPIImprove Quality At The Source

22. DMAIC in CPIImprove 5 / 6 S • 5S • Seiri:Sort – Get rid of clutter • Separate the needed from the unneeded • Eliminate the latter • Seiton: Set in order • Everything in its proper place • Seiso: Shine, i.e. Clean the work area • Seiketsu: Standardize • Establish written standards for cleanliness • Shitsuke: Sustain i.e. Make the first 4S a habit • 6S = 5S + Safety

23. DMAIC in CPIImprove

24. DMAIC in CPIImprove • Visual Management: Making information that is relevant about the process clear, timely and regular. • Displays production status • Communicate between departments/shifts • Faster response to problems • Increased awareness of Waste • Promotes culture change

25. DMAIC in CPIImprove • Visual Management • Subjects: Safety, security, training, productivity measurements, production status, process performance, housekeeping, defect/scrap rate. • CAUTION! Visual Management is not show and tell for the bosses! Don’t be seen as showing off to upper management or bragging about the goals you set.

26. DMAIC in CPIImprove Single Minute Exchange of Dies (SMED) • Reduce Setup Time • Not limited to Manufacturing • The Approach • Separate internal and external setup • Convert internal to external setup • Streamline setup • Perform setup in parallel or eliminate • Document procedures

27. DMAIC in CPIImprove • Batch Size Reduction • Applicable to Manufacturing & Maintenance & Other • Reduce batch size by eliminating constraints • Tradition • Instructions (lack-of) • Equipment • Material • Co-dependency • Large batches strain systems • Cost vs. Benefit

28. DMAIC in CPIImprove • Production Leveling • SMED • Batch Size Reduction • Automated Resource Planning (JIT) • Mixed Model Scheduling

29. DMAIC in CPIImprove • Point-of-Use Systems • Placing required resources at the site of production

30. DMAIC in CPIImprove Point-of-Use Systems • Placing required resources at the site of production

31. DMAIC in CPIImprove • Standardized Work • An agreed upon set of work procedures that: effectively combine people, materiel, and machines to maintain quality, efficiency, safety, and predictability. • Define the Work • Cycle Time • Work in Process (WIP) • Sequence • Takt Time • Layout • Inventory needed to conduct the activity • Poka Yoke

32. DMAIC in CPIImprove Best Practices (Benchmarking) • Benchmarking is a process of comparing • Who do we compare ourselves to? • Benchmarking is a continuous process • If you want to stay on top you have to keep climbing. • Benchmarking is a measurement and analysis process. • What Characteristics do we measure? • How do we measure?

33. DMAIC in CPIImprove • Home Grown Ideas • Who knows the As-Is work best? • Do people ever complain about how work is done? • Do people ever say things like: • “If we only had this tool, computer, etc.” • “Why don’t we do it this way.” • “I know there has to be a better way.” • Is the organization’s culture receptive to new and innovative Ideas? • Some of the best and brightest minds are in your own organization. USE THEM.

34. DMAIC in CPIImprove • Rank and Select Solutions BIG PAYOFF LITTLE PAYOFF 1 2 IMPLEMENT EASY 5 6 IMPLEMENT POSSIBLE 7 CHALLENGE KILL IMPLEMENT HARD 3 4

35. DMAIC in CPIImprove • Develop To-Be Process Models/Maps • Model Activities • IDEF 0 • Business Process Modeling Notation (BPMN) • Model Cost • Activity Based Costing (ABC) • Model Data • IDEF 1X • Develop To-Be Process/Activity Maps • Cross Functional Process Mapping

36. DMAIC in CPIAnalyze/Improve • IDEF 0 – Context Diagram

37. Internal (Private) Business Processes Obtain Material Obtain Material Obtain Material Obtain Material Obtain Material Make Product Make Product Make Product Sell Product Sell Product Take Order Take Order Take Order Take Order Take Order Take Order Take Order Doughnut Shop + + + + + + + + + + + + + + + + + High Level Internal Model

38. Abstract (Public) Processes Customer Obtain Material Make Product Sell Product Take Order Place Order Deliver Product + + + + Doughnut Shop

39. Collaborative (Public/Global) B2B Processes Receive Purchase Order Fill Order Ship Order Food Service Vendor Obtain Material Make Product Sell Product Take Order + + + + Doughnut Shop

40. DMAIC in CPIImprove ABC Model Resources ACTIVITY CENTER(s) RESOURCE DRIVER Activity & Activity Cost Pool Cost Element ACTIVITY DRIVER PROCESS A B C Cost Objects

41. DMAIC in CPIImprove -- Derived from Traditional reports -- Expenses incurred -- Interviews IDEF Inputs and Mechanisms, as well as Traditional Ledger Accts Direct from IDEF-0 activities ACTIVITY CENTER(s) Resources RESOURCE DRIVER Activity & Activity Cost Pool Cost Element PROCESS from Strategic Plan BSP Goals & Objectives ACTIVITY DRIVER IDEF interviews & Controls Activity definitions Activity Surveys Cost Objects Derived from IDEF- 0 Outputs

42. ICOMs Point To Entities Student Enrolled Student Enroll Course-Schedule Student Personnel Course Schedule New Student An Registrar Staff

43. DMAIC in CPIImprove Symbols: Start, Activity, Decision, etc. Departments (Organizational Elements/Units) Activity Flow: Arrows

44. DMAIC in CPIImprove • Develop To-Be Value Stream Map

45. DMAIC in CPIImprove • Proof the Concept • Design of Experiments (DOE) • Introduction to Prototyping/Piloting • Introduction to Benchmarking • Introduction to Simulation

46. DMAIC in CPIImprove Design of Experiments (DOE) • Experiments vs. Observations • Experimental Approaches • Trial and Error • One factor at a time • Multiple factors at a time (DOE) • Purpose of DOE: What drives the process? • Identify which Xs are Significant to Y • Quantify relationships between Xs and Y • Confirm Improvement • Set Xs to Optimize Y

47. DMAIC in CPIImprove Prototyping/Piloting • Test the To-Be • Mitigate Risk • Tweak the Process • Less Disruption • Lower Cost

48. DMAIC in CPIImprove Benchmarking • Benchmarking is a process of comparing • Who do we compare ourselves to? • Benchmarking is a continuous process • If you want to stay on top you have to keep climbing. • Benchmarking is a measurement and analysis process. • What Characteristics do we measure? • How do we measure?

49. DMAIC in CPIImprove Uses & Benefits of Simulation • Test Assumptions About the Process • Conduct “What If” Scenarios • Mitigate Risk • Lets process improvement be tested while current process continues • Less cost involved • Make corrections before implementation

50. Simulation Discrete-Event System Models Number of customers waiting to be served is a discrete event There is a specific number at given points in time DMAIC in CPIImprove