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Copyright © 2004, Center for High Performance Manufacturing. All rights reserved. Lean Manufacturing & Six Sigma Integration Lean Manufacturing & Six Sigma Lean Manufacturing & Six Sigma Integration Integration Lean Management Solutions Conference Lean Management Solutions Conference Dr. Kevin D. Dr. Kevin D. Creehan Creehan Dr. Robert E. Taylor Dr. Robert E. Taylor Dr. F. Frank Chen Dr. F. Frank Chen Philip Stephen Philip Stephen Hung Hung - - da da Wan Wan Liming Liming Yao Yao

Lean Manufacturing

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Page 1: Lean Manufacturing

Copyright © 2004, Center for High Performance Manufacturing. All rights reserved.

Lean Manufacturing & Six Sigma Integration

Lean Manufacturing & Six Sigma Lean Manufacturing & Six Sigma IntegrationIntegration

Lean Management Solutions ConferenceLean Management Solutions Conference

Dr. Kevin D.Dr. Kevin D. CreehanCreehanDr. Robert E. TaylorDr. Robert E. Taylor

Dr. F. Frank ChenDr. F. Frank ChenPhilip StephenPhilip StephenHungHung--dada WanWan

Liming Liming YaoYao

Page 2: Lean Manufacturing

Copyright © 2004, Center for High Performance Manufacturing. All rights reserved.

Research MissionResearch Mission

Exploratory effort to Exploratory effort to produce concise, yet produce concise, yet effective tools and effective tools and documentation that will documentation that will provide a distinct provide a distinct methodology for methodology for integrating the Lean integrating the Lean Manufacturing and Six Manufacturing and Six Sigma philosophies in Sigma philosophies in manufacturing facilitiesmanufacturing facilities

Quick Changeover

Standardized Work Batch Reduction Teams

Quality at Source

5S System Visual Plant Layout

POUS

Cellular/FlowPull/Kanban TPM

ValueStreamMapping

Continuous Improvement

Page 3: Lean Manufacturing

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MotivationMotivation

Lean ManufacturingLean Manufacturing–– Process efficiency & speedProcess efficiency & speed–– Waste reductionWaste reduction

Eliminating nonEliminating non--valuevalue--added activityadded activity

Six SigmaSix Sigma–– CustomerCustomer--driven structured culturedriven structured culture–– Cost & quality improvementCost & quality improvement

Statistical toolsStatistical tools

Lean & SixLean & Six--Sigma are not mutually exclusiveSigma are not mutually exclusiveIntegration is necessaryIntegration is necessary–– Either formally or informallyEither formally or informally

Existing process of integration is fuzzyExisting process of integration is fuzzy

Page 4: Lean Manufacturing

Copyright © 2004, Center for High Performance Manufacturing. All rights reserved.

ObjectivesObjectives

Derive integration methodologies to embed each Derive integration methodologies to embed each philosophy within the otherphilosophy within the other

Develop software tools that will reflect the embedded Develop software tools that will reflect the embedded structure of the hybrid integration and facilitate parallel structure of the hybrid integration and facilitate parallel implementationimplementation

Develop tools and methodologies to improve the Develop tools and methodologies to improve the communication between project teams and facilitate lean communication between project teams and facilitate lean & six sigma technology transfer between multiple & six sigma technology transfer between multiple organizational unitsorganizational units

Page 5: Lean Manufacturing

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Lean/6Lean/6--Sigma MatrixSigma MatrixDD MM AA II CC

1122334455667788991010

Page 6: Lean Manufacturing

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L6L6σσ StageStage

MethodologyMethodology ToolsTools

CommunicationCommunicationFunctionalityFunctionalityAssessmentAssessment

Page 7: Lean Manufacturing

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ExampleExampleLean Transition Step: Integrate Quality ControlLean Transition Step: Integrate Quality Control

Phase Phase Methodology Tools

Identify the CTQ, and develop a measurement system for the CTQ

No tools associated.

Develop a list of quality issues in the plant. 1. Structured/Unstructured Brainstorming2. Value Stream Map

Select the worst quality issue by critically analyzing each

1. Voting2. Nominal Group Techniques3. Matrix Criteria Ranking4. Criteria Cross Ranking

Map the process outputting substandard quality. 1. Process Flow Charts2. Value Stream Map

Identify the variables that may cause the quality issue under consideration

1. Structured/Unstructured Brainstorming2. Design of experiments3. Cause and Effect diagram (fishbone)4. Structure Tree5. CEDAC diagram6. Multi-Vari Analysis7. Concentration chart8. Components Search9. Paired Comparison10. Product/Process Search

Define

Page 8: Lean Manufacturing

Copyright © 2004, Center for High Performance Manufacturing. All rights reserved.

Ex: Integrate QCEx: Integrate QCCharacterize the variable that could cause the quality issue.

1. Analysis of Variance2. Correlation3. Histograms4. etc.

Characterize the CTQ, as to how many defectives are produced by the current setup.

1. Regression 2. Control/Run Charts3. etc.

Focus attention on vital few contributors to the quality issue

1. Variables Search2. Scatter Plots3. Response Surface Methodology4. Measurement Checksheets5. Pareto charts

Do a process capability study based on the data from the measure phase.

1. Process Capability Study

Based on the characterized CTQ, theorize on the possible areas of improvement.

1. Structured/Unstructured Brainstorming

Eliminate the causes by streamlining all aspects of the process by mechanizing, automating and organizing the work place.

1. 5S2. Point of Use Stroage3. Quick Changeover4. Standardize

Autonomate the manufacturing system (jidoka), establishing autonomous control of both quality and quantity.

1. Poka-yoke2. Andons (red, yellow, green lights)

Characterize CTQ by B versus C or if possible by simulating the refined process.

1. B versus C2. Simulation

Analyze

Measure

Page 9: Lean Manufacturing

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Ex: Integrate QCEx: Integrate QCA detailed analysis of the costs, benefits, potential problems, and impact on other areas should be developed.

1. Cost/Benefit Analysis2. Activity Based Costing

Identify the driving and restraining forces. 1. Force Field Analysis

Plan a strategy for the removal of restraining forces and the subtle promotions of driving forces.

1. Pull systems/Kanban2. Quality at the source3. Cellular/Flow4. Total Productive Maintenance5. Quick Changeover6. etc.

Develop an action plan as to how the activities that needs to be done for eliminating the quality issue.

No tools associated.

Monitor the process. 1. Control charts2. Quality at the source3. Visual tools

Implement the control plan by observing the statistically significant variations and initiating corrective actions.

1. Quality at the source2. Visual tools

Do process capability study for the integrated QC system.

1. Process Capability Study

Train the operators to run the integrated QC system effectively and give them authority to make decisions pertinent to the cell.

1. Cross-train employees2. Poka-yoke (error-proofing)3. Standardize Work

Control

Improve

Page 10: Lean Manufacturing

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Relationship toRelationship toLean Assessment ToolLean Assessment Tool

Goal: complement the tool created through the CHPM “Lean Goal: complement the tool created through the CHPM “Lean Assessment Tool” CenterAssessment Tool” Center--Designated ProjectDesignated Project

Vision: after using the Lean Assessment Tool to identify currentVision: after using the Lean Assessment Tool to identify currentstate, one could use the “Lean & Six Sigma Integration Tool” to state, one could use the “Lean & Six Sigma Integration Tool” to identify potential activities that would improve the company’s identify potential activities that would improve the company’s “leanness” “leanness”

Challenge: mapping the results of the Lean Assessment Tool into Challenge: mapping the results of the Lean Assessment Tool into the various tool sets in the Lean & Six Sigma Integration Toolthe various tool sets in the Lean & Six Sigma Integration Tool

Page 11: Lean Manufacturing

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Software ToolSoftware ToolUsed at any stage of Lean Used at any stage of Lean implementationimplementationProcess to determine Process to determine appropriate projects and appropriate projects and action items given their action items given their existing level of existing level of implementation and implementation and integrationintegrationAccess to theoretical Access to theoretical improvement improvement methodologies as well as methodologies as well as practical implementation practical implementation results within the results within the organizationorganizationCommunication among Communication among current and former project current and former project team members within any team members within any group, division, or facility group, division, or facility within the organizationwithin the organization

Page 12: Lean Manufacturing

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EntityEntity--Relationship Relationship DiagramDiagram

Assumption: 10 Step Lean manufacturing process as described by Dr.J.T.Black is used as the backbone of the Lean Six Sigma database and is assumed to be complete and hence does not require any changes

Lean Six Sigma Datablase Entity Relationship (ER) Diagram:

Control_tools_describe

Improve_tools_describe

Analyze_tools_describeMeasure_tools_describe

Def ine_tools_describe

Team_tools_describe

Control_usesImprove_usesAnalyze_usesMeasure_usesDef ine_usesTeam_uses

Control_includesImprove_includesAnalyze_includesMeasure_includesDef ine_includes

Team_includes

Step_5

Step_4

Step_3Step_2

Step_1

Step_0

oolsets_contro

Tool_noToolsetnoTool_used_id

oolsets_im prov

Tool_noToolsetnoTool_used_id

oolsets_analyz

Tool_noToolsetnoTool_used_id

oolsets_m easu

Tool_noToolsetnoTool_used_id

Toolsets_define

Tool_noToolsetnoTool_used_id

Steps_control

Step_idStep_noStep_descriptionToolset_no

Steps_im prove

Steps_idStep_noStep_descriptionToolset_no

Steps_analyze

Step_idStep_noStep_descriptionToolset_no

Steps_m easure

Step_idStep_noStep_descriptionToolset_no

Steps_define

Step_idStep_noStep_descriptionToolset_no

LSS_Steps

Steps_idDescription

Toolsets_team

Tool_noToolsetnoTool_used_id

Steps_team

Step_idStep_noStep_descriptionToolset_no

Tools

Tool_idDescriptionOutput descriptio

Control_tbl

Control_step_idCorrective_action

Im prove_tbl

Improve_step_idAction_plan_id

Analyze_tbl

Analyze_step_idBest_improveme

Measure_tbl

Measure_step_idCTQ_Characteriz

Define_tbl

Def ine_step_idCTQ_descCTQ_msr_sysTop_candidate

Team _tbl

Team_step_idTeam_leaderTeam_secretary

Page 13: Lean Manufacturing

Copyright © 2004, Center for High Performance Manufacturing. All rights reserved.

FunctionalityFunctionality

“Value Stream Mapping”

“Design of Experiments”

Page 14: Lean Manufacturing

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CommunicationCommunication

Save and share vital project Save and share vital project information between teams at information between teams at multiple locationsmultiple locations

Page 15: Lean Manufacturing

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Software DemoSoftware Demo

Page 16: Lean Manufacturing

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ImplementationImplementation

Quick Changeover

Standardized Work Batch Reduction Teams

Quality at Source

5S System Visual Plant Layout

POUS

Cellular/FlowPull/Kanban TPM

ValueStreamMapping

Continuous Improvement

CompanyCompanyObjectivesObjectivesActivitiesActivitiesResultsResults

Page 17: Lean Manufacturing

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AccomplishmentsAccomplishments

Integration methodologyIntegration methodology–– Lean/6Lean/6--σσ matrixmatrix–– L6L6σσ stage improvement methodologies stage improvement methodologies –– L6L6σσ toolboxestoolboxes–– Assessment mapAssessment map

Distributed database toolDistributed database tool–– Limited tool functionalityLimited tool functionality–– Assessment capabilityAssessment capability–– CommunicationCommunication

Page 18: Lean Manufacturing

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Ongoing WorkOngoing Work

Enhanced L6Enhanced L6σσ assessment strategyassessment strategyEnhanced software tool functionalityEnhanced software tool functionality–– Data analysisData analysis

Embedded results analyses and Embedded results analyses and recommendation strategyrecommendation strategyOffice Lean/6Office Lean/6σσEnhance software user interfaceEnhance software user interfaceImplementationImplementation

Page 19: Lean Manufacturing

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QuestionsQuestions