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I hope you find these Lean Six Sigma Training Overviews Helpful, collectively they offer an equivalent White Belt Level Training. Interested in obtaining Lean Six Sigma Training, Project Coaching, and Certification? Please contact me below:Steven Bonacorsi, MBB / Vice Presidenthttp://www.linkedin.com/in/StevenBonacorsi [email protected]://www.theaitgroup.com
Citation preview
Lean Six Sigma
Copyright 2005, AIT Group Inc. All rights reserved. 1
Lean Six SigmaLean Six Sigma RoadmapRoadmap
Copyright 2005, AIT Group Inc. All rights reserved. 2
Lean Six Sigma
ImproveImprove
Lean Six Sigma Improvement Process Road Map
• Review Project Charter • Validate Problem Statement and Goals
• Validate Voice of the Customer & Voice of the Business
• Validate Financial Benefits• Validate High-Level Value Stream Map and Scope
• Create Communication Plan• Select and Launch Team• Develop Project Schedule• Complete Define Gate
• Identify Potential Root Causes
• Reduce List of Potential Root Causes
• Confirm Root Cause to Output Relationship
• Estimate Impact of Root Causes on Key Outputs
• Prioritize Root Causes• Complete Analyze Gate
• Develop Potential Solutions• Evaluate, Select, and Optimize Best Solutions
• Develop ‘To-Be’ Value Stream Map(s)
• Develop and Implement Pilot Solution
• Confirm Attainment of Project Goals
• Develop Full Scale Implementation Plan
• Complete Improve Gate
• Implement Mistake Proofing• Develop SOP’s, Training Plan & Process Controls
• Implement Solution and Ongoing Process Measurements
• Identify Project Replication Opportunities
• Complete Control Gate• Transition Project to Process Owner
• Project Charter• Voice of the Customer and Kano Analysis
• SIPOC Map• Project Valuation / ROIC Analysis Tools
• RACI and Quad Charts• Stakeholder Analysis• Communication Plan• Effective Meeting Tools• Inquiry and Advocacy Skills• Time Lines, Milestones, and Gantt Charting
• Pareto Analysis
• Value Stream Mapping• Value of Speed (Process Cycle Efficiency / Little’s Law)
• Operational Definitions• Data Collection Plan• Statistical Sampling• Measurement System Analysis (MSA)
• Gage R&R• Kappa Studies• Control Charts• Histograms• Normality Test• Process Capability Analysis
• Process Constraint ID and Takt Time Analysis
• Cause & Effect Analysis• FMEA• Hypothesis Tests/Conf. Intervals
• Simple & Multiple Regression• ANOVA• Components of Variation• Conquering Product and Process Complexity
• Queuing Theory
• Replenishment Pull/Kanban• Stocking Strategy• Process Flow Improvement • Process Balancing• Analytical Batch Sizing• Total Productive Maintenance• Design of Experiments (DOE)• Solution Selection Matrix• Piloting and Simulation
• Mistake-Proofing/ Zero Defects
• Standard Operating Procedures (SOP’s)
• Process Control Plans• Visual Process Control Tools• Statistical Process Controls (SPC)
• Solution Replication• Project Transition Model• Team Feedback Session
• Value Stream Map for Deeper Understanding and Focus
• Identify Key Input, Process and Output Metrics
• Develop Operational Definitions• Develop Data Collection Plan• Validate Measurement System• Collect Baseline Data• Determine Process Capability• Complete Measure Gate
Tools
Activities
AnalyzeAnalyze ControlControlMeasureMeasureDefineDefine
Kaizen, 5S, NVA Analysis,Generic Pull Systems,
Four Step Rapid Setup Method
Kaizen, 5S, NVA Analysis,Generic Pull Systems,
Four Step Rapid Setup Method
Identify and Implement Quick ImprovementsIdentify and Implement Quick Improvements
Copyright 2005, AIT Group Inc. All rights reserved. 3
Lean Six Sigma Define
• Develop a Project Charter with the Project Focus, Key Metrics, and Project Scope
• Select Team Members and Launch Project• Identify Stakeholders and develop a communication plan• Identify the Customers and Capture the “Voice of the
Customer” Requirements (typically Quality and/or Speed)• Identify the Process Owner and Capture the “Voice of the
Business” Requirements (typically Cost and/or Speed)• Develop Critical Customer Requirements (CCR’s) and Critical
Business Requirements (CBR’s)• Finalize Project Focus and Modify Project Charter• Define Gate Review
= key deliverable
Copyright 2005, AIT Group Inc. All rights reserved. 4
Lean Six Sigma Measure
• Identify Key Input, Process and Output Metrics• Clearly define Operational Definitions• Develop a Data Collection Plan• Validate the Measurement Systems• Collect Baseline Data• Determine Process Performance / Capability• Validate the Business Opportunity• Identify “Quick Win” Opportunities• Measure Gate Review
= key deliverable
Copyright 2005, AIT Group Inc. All rights reserved. 5
Lean Six Sigma Analyze
• Brainstorm Key Process Input Variables & Key Process Variables (KPIVs & KPV’s, I.e. Potential Root Causes)
• Prioritize Root Causes• Conduct Root Cause Analysis • Validate the Root Causes• Estimate the Impact of Each Root Cause on the Project’s
Performance Output• Quantify the Opportunity• Prioritize Root Causes• Analyze Gate Review
= key deliverable
Copyright 2005, AIT Group Inc. All rights reserved. 6
Lean Six Sigma Improve
• Develop Potential Solutions• Develop Evaluation Criteria & Select Best Solutions• Evaluate the Solutions for Risk• Optimize the Solution• Develop ‘To-Be’ Process Map(s) and High-Level
Implementation Plan• Develop Pilot Plan and Pilot the Solution• Improve Gate Review
= key deliverable
Copyright 2005, AIT Group Inc. All rights reserved. 7
Lean Six Sigma Control
• Institutionalize Process Changes and Controls• Finalize SOP’s, Training Plan & Process Control System• Implement Process Changes and Controls• Stabilize and Begin Monitoring the Process• Transition Project to Process Owner• Identify Project Replication Opportunities• Prove Changes Resulted In Improvement• Calculate Financial Benefits• Control Gate Review
= key deliverable
Copyright 2005, AIT Group Inc. All rights reserved. 8
Lean Six Sigma Successful Project Factors
• Management and/or Champion involvement• Project selected is clearly aligned with strategic company objectives• Project is one you need to work anyway• Problem, Goal and Metrics are well defined and agreed upon• Scope is well defined and reasonable• Data is available• Defects and Waste issues; tools are applicable• Management resource commitment
• FREQUENT Communication about the project – candidate to team and management
• Ability to implement potential solutions, not just to come up with recommendations
Copyright 2005, AIT Group Inc. All rights reserved. 9
Lean Six Sigma
Deployment Principles That Always Work “The Recipe”
1. Executive engagement – Rule of 3 5’s: 5 times a week, in the presence of 5 people, spend 5 minutes talking about Lean Six Sigma deployment
2. A strong and respected Deployment Champion should report to the Top Leader
3. Organization elements own resources & are accountable for project results
4. Deploy critical mass of key resources full-time (Black Belts/ Champions)5. Resources should be selected from “future leaders” of the organization6. Establish a rigorous process for Project Identification and Selection within
the organization7. Actively reduce Projects in Process to reduce project cycle times.8. Track results rigorously: Lean Six Sigma results should “pay as you go”
and be confirmed by objective parties9. Black Belts must have team leadership skills10.Design the Lean Six Sigma deployment as a journey
Copyright 2005, AIT Group Inc. All rights reserved. 10
Lean Six Sigma High Level DMAIC Approach
Define Measure Analyze Improve Control
Preliminary Data Analysis
SIPOC
Value StreamMapping
NEM Baseline
(IMR)
ProcessMapping
ProcessCapability
MeasurementSystem Analysis
FMEA
AdvancedNEM
(XbarR)
ComponentsOf Variation
/ ANOVA
DOE Execution
DOE PlanningTemplate
ClassificationOf Control
Issues
Control Methods
ControlPlanDOE Analysis
& Results
• When did it happen?• Where did it happen?• What is the success criteria?
• Where in the process do we need to scope efforts?• What is the target value?• What are the specs?
• How much waste is in this process?• What is our value added percentage?
• What does the process look like?• What does the process look like from the product’s view?
• What changes have been made to the process?• What possible variables relate to the change ?
• How often does this happen?• What trends have we observed relative to the target?
• Is the process capable?• Do we want to reduce variation?• Do we want to shift the mean?
• Is the measurement process capable?• Is the test a destructive test?
• What is causing failure?• What is the impact of failure?• How do we mitigate the risk of failure?
• What variables are contributing to mean shifts? • What variables are contributing to variation?
• What is the sub- grouping strategy?
• What does the DOE process plan look like?•What responses are we interested in (Average, Range)?• What variables do we want to optimize? Why?
• What observations did we have during the experiment?• What roles need to be established to run the DOE?
• What variables are critical to the process?• How should the critical variables be set?
• How will we address Org. issues?• How will we address Behavioral issues?
• What variables do we need to control?
• What control methods will be used to ensure gains are sustained?
•Who is responsible for implementing the control?
•Who is accountable for the process results?
Operator & Product
Activity Analysis
Copyright 2005, AIT Group Inc. All rights reserved. 11
Lean Six Sigma
x xx
x
xxx
x xxxx
xx
x
x
xxxx
xxxx
xxxxxx
xx xxxx
xxxx xxxxxx
xxxx xxxx
Few
X’s
M
any
x’s
VELOCITYOPPORTUNITY (Reduce Waste)
VARIATION OPPORTUNITY
(Reduce Variation)
Detailed Process MapPMAP
Failure Modes AnalysisFMEA
Numerical Evaluation of Metrics (NEM)
Design of ExperimentsDOE
Mistake Proofing
Regression Analysis
Control Strategies
MeasureMeasure
AnalyzeAnalyze
ImproveImprove
ControlControl
x xx xx
xx
xx
xx x
x xx x xx xxx
xxx x
x
xx x
xThought Map
TMAP
SIPOCDefineDefine Value Stream
Mapping
Product Families
Product FlowAnalysis
Employee ActivityAnalysis
Set-upReduction
Improvement Considerations
Workplace Design
Standard Work
PerformanceMetrics
5S Implementation
Y=f(x)
x
Measurement System MSE
T-Test, Chi Square, ANOVA, COVMaterial
Replenishment
Funnel-Down Many Variables to the Critical Few!
Copyright 2005, AIT Group Inc. All rights reserved. 12
Lean Six Sigma
Baseline Process
Characterize Processes
ID Process Failure Modes
Evaluate Measurement Systems
ID Critical Variables
Implement Process Improvements
Control/MaintainProcess Improvements
Establish Project Scope
Problem Resolution Methodology
6σ Project Phases
Measure
Analyze
Improve
Control
Define
2x/day2x/day
2x/week2x/week
SupplierSupplier
I60 coils
I60 coils
I3000 pcs
II3000 pcs
I
PC & L
Weekly Build Schedule
Daily Ship Schedule
4 week rolling foreca st
6 week rolling foreca stWeekly Orde r
Weekly Orde r
Custome r
Part A = 50
Part B = 120Part C = 70
Custome rCustome r
Part A = 50
Part B = 120Part C = 70
Custome rCustome r
Part A = 50
Part B = 120Part C = 70
Custome rCustome r
Part A = 50
Part B = 120Part C = 70
Custome r/
Distributo r
Demand/wee k:
Custome r
Part A = 50
Part B = 120Part C = 70
Custome rCustome r
Part A = 50
Part B = 120Part C = 70
Custome rCustome r
Part A = 50
Part B = 120Part C = 70
Custome rCustome r
Part A = 500
Part B = 1200Part C = 700
Custome r/
Distributo r
Demand/wee k:
Straightening
Takt = 20 sec
C.T. = 20.4 sec
D.T. =FTQ = 99%
Lot Size =
# of Shifts = 2WIP = 1500 pcs
Straightening
Takt
D.T. = 3.1%FTQ = 99%
C/O Ti me = 1 hrLot Size =
# of Shifts = 2WIP = 1500 pcs
ShippingShippingPoint/Chamfe r
Takt = 20 secC.T. = 10 sec
D.T. =
FTQ = 100%C/O Ti me = 1 5 min
Lot Size =
# of Shifts = 2WIP = 100 pc
Point/Chamfe r
Takt
D.T. = 1%
FTQ = 100%C/O Ti me = 1 5 min
Lot Size =
# of Shifts = 2WIP = 100 pc
Draw
Takt = 19 min
C.T. = 15 min
D.T. =FTQ = 99%
C/O Ti me = 3 0 minLot Size =
# of Shifts = 2WIP = 8 coils
Draw
Takt = 19 min
C.T. = 15 min
D.T. = 4%FTQ = 99%
C/O Ti me = 3 0 minLot Size =
# of Shifts = 2WIP = 1 coils
Anneal
Takt = 240 minC.T. = 200 mi n
D.T. =
FTQ = 100%C/O Ti me =
Lot Size =
# of Shifts = 2WIP = 3 coils
Anneal
Takt = 240 minC.T. = 200 mi n
D.T. = 0.5%
FTQ = 100%C/O Ti me = 3 0 m
Lot Size =
# of Shifts = 2
Pickle
Takt = 240 minC.T. = 200 mi n
D.T. =
FTQ = 100%
C/O Ti me = 1 0 minLot Size =
# of Shifts = 2WIP = 4 coils
Pickle
Takt = 240 minC.T. = 200 mi n
D.T. = 1%
FTQ = 100%
C/O Ti me = 1 0 minLot Size =
# of Shifts = 2WIP =
20 coils20 coils20 coils20 coils6 coils
2x/day2x/day
2x/week2x/week
SupplierSupplier
I60 coils
I60 coils
I3000 pcs
II3000 pcs
I
PC & L
Weekly Build Schedule
Daily Ship Schedule
4 week rolling foreca st
6 week rolling foreca stWeekly Orde r
Weekly Orde r
Custome r
Part A = 50
Part B = 120Part C = 70
Custome rCustome r
Part A = 50
Part B = 120Part C = 70
Custome rCustome r
Part A = 50
Part B = 120Part C = 70
Custome rCustome r
Part A = 50
Part B = 120Part C = 70
Custome r/
Distributo r
Demand/wee k:
Custome r
Part A = 50
Part B = 120Part C = 70
Custome rCustome r
Part A = 50
Part B = 120Part C = 70
Custome rCustome r
Part A = 50
Part B = 120Part C = 70
Custome rCustome r
Part A = 500
Part B = 1200Part C = 700
Custome r/
Distributo r
Demand/wee k:
Straightening
Takt = 20 sec
C.T. = 20.4 sec
D.T. =FTQ = 99%
Lot Size =
# of Shifts = 2WIP = 1500 pcs
Straightening
Takt
D.T. = 3.1%FTQ = 99%
C/O Ti me = 1 hrLot Size =
# of Shifts = 2WIP = 1500 pcs
ShippingShippingPoint/Chamfe r
Takt = 20 secC.T. = 10 sec
D.T. =
FTQ = 100%C/O Ti me = 1 5 min
Lot Size =
# of Shifts = 2WIP = 100 pc
Point/Chamfe r
Takt
D.T. = 1%
FTQ = 100%C/O Ti me = 1 5 min
Lot Size =
# of Shifts = 2WIP = 100 pc
Draw
Takt = 19 min
C.T. = 15 min
D.T. =FTQ = 99%
C/O Ti me = 3 0 minLot Size =
# of Shifts = 2WIP = 8 coils
Draw
Takt = 19 min
C.T. = 15 min
D.T. = 4%FTQ = 99%
C/O Ti me = 3 0 minLot Size =
# of Shifts = 2WIP = 1 coils
Anneal
Takt = 240 minC.T. = 200 mi n
D.T. =
FTQ = 100%C/O Ti me =
Lot Size =
# of Shifts = 2WIP = 3 coils
Anneal
Takt = 240 minC.T. = 200 mi n
D.T. = 0.5%
FTQ = 100%C/O Ti me = 3 0 m
Lot Size =
# of Shifts = 2
Pickle
Takt = 240 minC.T. = 200 mi n
D.T. =
FTQ = 100%
C/O Ti me = 1 0 minLot Size =
# of Shifts = 2WIP = 4 coils
Pickle
Takt = 240 minC.T. = 200 mi n
D.T. = 1%
FTQ = 100%
C/O Ti me = 1 0 minLot Size =
# of Shifts = 2WIP =
20 coils20 coils20 coils20 coils6 coils
2x/day2x/day
2x/week2x/week
SupplierSupplier
I60 coils
I60 coils
I3000 pcs
II3000 pcs
I
PC & L
Weekly Build Schedule
Daily Ship Schedule
4 week rolling foreca st
6 week rolling foreca stWeekly Orde r
Weekly Orde r
Custome r
Part A = 50
Part B = 120Part C = 70
Custome rCustome r
Part A = 50
Part B = 120Part C = 70
Custome rCustome r
Part A = 50
Part B = 120Part C = 70
Custome rCustome r
Part A = 50
Part B = 120Part C = 70
Custome r/
Distributo r
Demand/wee k:
Custome r
Part A = 50
Part B = 120Part C = 70
Custome rCustome r
Part A = 50
Part B = 120Part C = 70
Custome rCustome r
Part A = 50
Part B = 120Part C = 70
Custome rCustome r
Part A = 500
Part B = 1200Part C = 700
Custome r/
Distributo r
Demand/wee k:
Straightening
Takt = 20 sec
C.T. = 20.4 sec
D.T. =FTQ = 99%
Lot Size =
# of Shifts = 2WIP = 1500 pcs
Straightening
Takt
D.T. = 3.1%FTQ = 99%
C/O Ti me = 1 hrLot Size =
# of Shifts = 2WIP = 1500 pcs
ShippingShippingPoint/Chamfe r
Takt = 20 secC.T. = 10 sec
D.T. =
FTQ = 100%C/O Ti me = 1 5 min
Lot Size =
# of Shifts = 2WIP = 100 pc
Point/Chamfe r
Takt
D.T. = 1%
FTQ = 100%C/O Ti me = 1 5 min
Lot Size =
# of Shifts = 2WIP = 100 pc
Draw
Takt = 19 min
C.T. = 15 min
D.T. =FTQ = 99%
C/O Ti me = 3 0 minLot Size =
# of Shifts = 2WIP = 8 coils
Draw
Takt = 19 min
C.T. = 15 min
D.T. = 4%FTQ = 99%
C/O Ti me = 3 0 minLot Size =
# of Shifts = 2WIP = 1 coils
Anneal
Takt = 240 minC.T. = 200 mi n
D.T. =
FTQ = 100%C/O Ti me =
Lot Size =
# of Shifts = 2WIP = 3 coils
Anneal
Takt = 240 minC.T. = 200 mi n
D.T. = 0.5%
FTQ = 100%C/O Ti me = 3 0 m
Lot Size =
# of Shifts = 2
Pickle
Takt = 240 minC.T. = 200 mi n
D.T. =
FTQ = 100%
C/O Ti me = 1 0 minLot Size =
# of Shifts = 2WIP = 4 coils
Pickle
Takt = 240 minC.T. = 200 mi n
D.T. = 1%
FTQ = 100%
C/O Ti me = 1 0 minLot Size =
# of Shifts = 2WIP =
20 coils20 coils20 coils20 coils6 coils
2x/day2x/day
2x/week2x/week
SupplierSupplier
I60 coils
I60 coils
I3000 pcs
II3000 pcs
I
PC & L
Weekly Build Schedule
Daily Ship Schedule
4 week rolling foreca st
6 week rolling foreca stWeekly Orde r
Weekly Orde r
Custome r
Part A = 50
Part B = 120Part C = 70
Custome rCustome r
Part A = 50
Part B = 120Part C = 70
Custome rCustome r
Part A = 50
Part B = 120Part C = 70
Custome rCustome r
Part A = 50
Part B = 120Part C = 70
Custome r/
Distributo r
Demand/wee k:
Custome r
Part A = 50
Part B = 120Part C = 70
Custome rCustome r
Part A = 50
Part B = 120Part C = 70
Custome rCustome r
Part A = 50
Part B = 120Part C = 70
Custome rCustome r
Part A = 500
Part B = 1200Part C = 700
Custome r/
Distributo r
Demand/wee k:
Straightening
Takt = 20 sec
C.T. = 20.4 sec
D.T. =FTQ = 99%
Lot Size =
# of Shifts = 2WIP = 1500 pcs
Straightening
Takt
D.T. = 3.1%FTQ = 99%
C/O Ti me = 1 hrLot Size =
# of Shifts = 2WIP = 1500 pcs
ShippingShippingPoint/Chamfe r
Takt = 20 secC.T. = 10 sec
D.T. =
FTQ = 100%C/O Ti me = 1 5 min
Lot Size =
# of Shifts = 2WIP = 100 pc
Point/Chamfe r
Takt
D.T. = 1%
FTQ = 100%C/O Ti me = 1 5 min
Lot Size =
# of Shifts = 2WIP = 100 pc
Draw
Takt = 19 min
C.T. = 15 min
D.T. =FTQ = 99%
C/O Ti me = 3 0 minLot Size =
# of Shifts = 2WIP = 8 coils
Draw
Takt = 19 min
C.T. = 15 min
D.T. = 4%FTQ = 99%
C/O Ti me = 3 0 minLot Size =
# of Shifts = 2WIP = 1 coils
Anneal
Takt = 240 minC.T. = 200 mi n
D.T. =
FTQ = 100%C/O Ti me =
Lot Size =
# of Shifts = 2WIP = 3 coils
Anneal
Takt = 240 minC.T. = 200 mi n
D.T. = 0.5%
FTQ = 100%C/O Ti me = 3 0 m
Lot Size =
# of Shifts = 2
Pickle
Takt = 240 minC.T. = 200 mi n
D.T. =
FTQ = 100%
C/O Ti me = 1 0 minLot Size =
# of Shifts = 2WIP = 4 coils
Pickle
Takt = 240 minC.T. = 200 mi n
D.T. = 1%
FTQ = 100%
C/O Ti me = 1 0 minLot Size =
# of Shifts = 2WIP =
20 coils20 coils20 coils20 coils6 coils
Process Name: Copper TollingProcess Owner: Eric Sandford
Suppliers Inputs Outputs(Providers of the required resources)
(Resources required by the process)
(Deliverables from the process)
Requirements
Copper Manager Orders quantity Quantity per merchant. Copper deliveredfrom Delphi plants Delivered/Timing to suppliers forto merchant transformation
Delphi accounting Index used, timing & Accuracypurchasing quantity's delivered &
reported.
Delphi Plants Forecast from D Plants Level & StablePC&L (Customer)
Merchants Global sourcing Selection of merchantssupply quotes quotes based on
Delphi legal risk Bailment contract Risk protectionmanagement (t.o),purchasing
Buyer and receipt Dacor invoices, plant Accurate Payment to fabricationclerk receipts, fabrication supplier
buyer P.O. 's +
Delphi cost Delphi inventory records Inventory Reconciliation Inventory accountingaccounting and costsSupplier cost accounting +
P.O. price entry P.O. price and market Accurate Payment to merchantPlatts index, quantity
=
All-In Costs
Process(Top level description of the activity)
Requirements received from Delphi Plants
Copper Tolling
When fabricated product is
paid
Requirements
Cathode deliveredon time, quantity, Fabrication Suppliersright brand, and quality
Per terms correctamount
Accurate quantity's Delphiand value Fabrication Suppliers
Per terms correct Merchantsamount
Customers(Stakeholders who place the requirements
on the outputs)
Process Name: Copper TollingProcess Owner: Eric Sandford
Suppliers Inputs Outputs(Providers of the required resources)
(Resources required by the process)
(Deliverables from the process)
Requirements
Copper Manager Orders quantity Quantity per merchant. Copper deliveredfrom Delphi plants Delivered/Timing to suppliers forto merchant transformation
Delphi accounting Index used, timing & Accuracypurchasing quantity's delivered &
reported.
Delphi Plants Forecast from D Plants Level & StablePC&L (Customer)
Merchants Global sourcing Selection of merchantssupply quotes quotes based on
Delphi legal risk Bailment contract Risk protectionmanagement (t.o),purchasing
Buyer and receipt Dacor invoices, plant Accurate Payment to fabricationclerk receipts, fabrication supplier
buyer P.O. 's +
Delphi cost Delphi inventory records Inventory Reconciliation Inventory accountingaccounting and costsSupplier cost accounting +
P.O. price entry P.O. price and market Accurate Payment to merchantPlatts index, quantity
=
All-In Costs
Process(Top level description of the activity)
Requirements received from Delphi Plants
Copper Tolling
When fabricated product is
paid
Requirements
Cathode deliveredon time, quantity, Fabrication Suppliersright brand, and quality
Per terms correctamount
Accurate quantity's Delphiand value Fabrication Suppliers
Per terms correct Merchantsamount
Customers(Stakeholders who place the requirements
on the outputs) Identify Product
Portfolio Plans
Execute Divisional Strategic Analysis
Identify Relationship
Broker -or-Share Knowledge
Customer
Directed?
Apply Lessons Learned
Complete Delphi Selling
Strategy
Determine Business
Opportunities
Business
Pursued?
Info Shared
Between Divisions?
N! Customer Directed BusinessS CI0 (Budget, Resources)S PI (Budget, Resources)N! ‘In Your Head’S Opportunity Screener (Budget, Resources)
BusinessPlan
N! RelationshipsN! Strategic ImportanceN ROLR (Right of Last Refusal)C Red FlagsC StrengthsC Divisional Product StrategyC Pursuit Plan
ForecastStrategy
Shared InformationLevel Knowledge BaseLeveraged Synergies
C Tech ShowsC Customer Contact CallsC Influence PeddlingC! Divisional Strategic AnalysisKey:
! - CriticalN - NoiseS - Standard Operating ProcedureC - Controllable
No
No
No
Yes
Yes
Yes
C Budget DisconnectsC Resource DisconnectsC Poor Documentation
N Vehicle VolumeN Vehicle TimingN ContentN Ford Goals & ObjectivesN Personalities/RelationshipsC Customer Strategy/PortfolioC Divisional StrategiesS Divisional ProcessesN Divisional IntelligenceS Divisional Quoting Philosophy
Product Portfolio Plan
Business
Pursued?
ContinuousImprovement
No Quote
Proceed With
Sourcing
Yes
No
C Linked Divisional Strategic AnalysisC! Unlinked Divisional Strategic Analysis
Unified Front to CustomerStrategic Analysis for Selling (comparison & synergies applied)Divisional Intelligence & Lessons Learned (comparison & synergies applied)Philosophy of Quoting Techniques (comparison & synergies applied)
C Profit MarginC Costs to Do
Quote
C Doesn’t Fit Divisional Product StrategyC Doesn’t Fit Pursuit PlanC Poor Business Case
No Quote Letter to
Ford
Note: Not part of strategic analysis for selling process
Identify Product
Portfolio Plans
Execute Divisional Strategic Analysis
Identify Relationship
Broker -or-Share Knowledge
Customer
Directed?
Apply Lessons Learned
Complete Delphi Selling
Strategy
Determine Business
Opportunities
Business
Pursued?
Info Shared
Between Divisions?
N! Customer Directed BusinessS CI0 (Budget, Resources)S PI (Budget, Resources)N! ‘In Your Head’S Opportunity Screener (Budget, Resources)
BusinessPlan
N! RelationshipsN! Strategic ImportanceN ROLR (Right of Last Refusal)C Red FlagsC StrengthsC Divisional Product StrategyC Pursuit Plan
ForecastStrategy
Shared InformationLevel Knowledge BaseLeveraged Synergies
C Tech ShowsC Customer Contact CallsC Influence PeddlingC! Divisional Strategic AnalysisKey:
! - CriticalN - NoiseS - Standard Operating ProcedureC - Controllable
No
No
No
Yes
Yes
Yes
C Budget DisconnectsC Resource DisconnectsC Poor Documentation
N Vehicle VolumeN Vehicle TimingN ContentN Ford Goals & ObjectivesN Personalities/RelationshipsC Customer Strategy/PortfolioC Divisional StrategiesS Divisional ProcessesN Divisional IntelligenceS Divisional Quoting Philosophy
Product Portfolio Plan
Business
Pursued?
ContinuousImprovement
No Quote
Proceed With
Sourcing
Yes
No
C Linked Divisional Strategic AnalysisC! Unlinked Divisional Strategic Analysis
Unified Front to CustomerStrategic Analysis for Selling (comparison & synergies applied)Divisional Intelligence & Lessons Learned (comparison & synergies applied)Philosophy of Quoting Techniques (comparison & synergies applied)
C Profit MarginC Costs to Do
Quote
C Doesn’t Fit Divisional Product StrategyC Doesn’t Fit Pursuit PlanC Poor Business Case
No Quote Letter to
Ford
Note: Not part of strategic analysis for selling processVOC
Critical X’s
Product Line Sales $ (YTD) Gross Margins Production Volumes
Market Comments
Brackets $ 70.3 Million $ 2.8 M / 39% 80 Million High vol -Growing Cylindrical
Wheels $ 60 Million $ 2.3 M / 38% 94 Million High vol. Growing Autom.
Closures $ 31.1 Million $ 1 M / 33% 15 Million Large Diameter Old Equip.
Shafts $ 21.5 Million $ 1 M / 40% 5.4 Million Hydraulic Small batches
Separated Operations $ 1.7 Million $ 0.3 M / 19% 1.3 Million High LabourOld equip.
Seals $ 5 Million $ 0.7 M / 7% 4.5 Million Automotive
Other Products $ 4 Million $ 0.3 M / 17% 9.3 Million
Product Line Sales $ (YTD) Gross Margins Production Volumes
Market Comments
Brackets $ 70.3 Million $ 2.8 M / 39% 80 Million High vol -Growing Cylindrical
Wheels $ 60 Million $ 2.3 M / 38% 94 Million High vol. Growing Autom.
Closures $ 31.1 Million $ 1 M / 33% 15 Million Large Diameter Old Equip.
Shafts $ 21.5 Million $ 1 M / 40% 5.4 Million Hydraulic Small batches
Separated Operations $ 1.7 Million $ 0.3 M / 19% 1.3 Million High LabourOld equip.
Seals $ 5 Million $ 0.7 M / 7% 4.5 Million Automotive
Other Products $ 4 Million $ 0.3 M / 17% 9.3 Million
What is the
project scope?
Project Charter
Project Justification
SIPOC
Product Families
Thought Map
How is the process
performing today?
Numerical Evaluation of Metrics
Misc:Tolerance:Reported by:Date of study:Gage name:
0
500
400
300
200
321
Xbar Chart by Administrato
Sam
ple
Mea
n
Mean=348.4UCL=365.8LCL=331.1
0
50
40
30
20
10
0
321
R Chart by Administrato
Sam
ple
Ran
ge
R=17
UCL=43.76
LCL=0
54321
500
400
300
200
Sample
AdministratoAdministrato*Sample Interaction
Aver
age
1 2 3
321
500
400
300
200
Administrato
By Administrato
54321
500
400
300
200
Sample
By Sample
%Contribution %Study Var
Part-to-PartReprodRepeatGage R&R
100
50
0
Components of Variation
Per
cent
Gage R&R (ANOVA) for Labor Cost/T
Measurement System Evaluation
Data Integrity?
Value Stream Map
Process Map
D - Defective Production O - Over ProductionT - TransportationW - WaitingI - Inventory
M - MotionP - Processing
The Seven Wastes
AREA NAME: BEFORE - Car rier Asse mbly - Ball Bearings PREPARED BY:
SUPERVISOR: DATE:
NOTE: Depict rough scale o f equip ment layout; a nd, dra w a point to poi nt diagr am of t he com plete pr oduct flow
Trash
Bench
Parts Rack
ToolBox
Part Box
OVEN
Press
Vice
1
2
3
4
5
6
7
89 10
11
121314
15
16
17
1819
20
212223
34
36
37
3839
40
41
42
43
44
24
25
26
27
35
33
32
31
30
29
28
AREA NAME: BEFORE - Car rier Asse mbly - Ball Bearings PREPARED BY:
SUPERVISOR: DATE:
NOTE: Depict rough scale o f equip ment layout; a nd, dra w a point to poi nt diagr am of t he com plete pr oduct flow
Trash
Bench
Parts Rack
ToolBox
Part Box
OVEN
Press
Vice
1
2
3
4
5
6
7
89 10
11
121314
15
16
17
1819
20
212223
34
36
37
3839
40
41
42
43
44
24
25
26
27
35
33
32
31
30
29
28
Trash
Bench
Parts Rack
ToolBox
Part Box
OVEN
Press
Vice
Trash
Bench
Parts Rack
ToolBox
Part Box
OVEN
Press
Vice
1
2
3
4
5
6
7
89 10
11
121314
15
16
17
1819
20
212223
34
36
37
3839
40
41
42
43
44
24
25
26
27
35
33
32
31
30
29
28
Where is the waste occurring
?
Process Flow & Employee Activity Analysis
Failure Modes and Effects Analysis:
Work with Customer to increase budget allocation for payments
605
Accounts payable policy3
Limited budget allocation for weekly payments4
Delay in payment process (30 days)
Lack of funds budgeted for payment
Approve payment
Reduce disputes to alleviate workload
755None3
Heavy workload creating conflicting priorities5
Delay in payment due to dispute (40 days)
Slow response by business unit
Dispute resolution & re-issue
Strengthen ATL communication with Billing by incentivisedroles
755None3
Mis-communication between ATL and Billing5
Delay in payment due to invoice dispute (40 days)
Customer has dispute with invoice
Review and confirm invoices
Need to study dispute issues for reduction in disputes, Focus on Price
804
Pricing database4
Price, Quantity or Work-scope does not agree with quote5
Customer disputes invoice delaying payment (40 days)
Invoice is incorrectIssue Invoice
Actions(What actions are
being done to eliminate the cause?)
RPN
DET
Controls(What controls are currently in place to catch or prevent this
failure?)
OCC
Causes(What is the root cause reason for
the failure?)
SEV
Failure Effects(How does the failure affect the function of
the step?)
Failure Mode
(Describe what could go wrong.)
Part/process(What is the
function of each step?)
Work with Customer to increase budget allocation for payments
605
Accounts payable policy3
Limited budget allocation for weekly payments4
Delay in payment process (30 days)
Lack of funds budgeted for payment
Approve payment
Reduce disputes to alleviate workload
755None3
Heavy workload creating conflicting priorities5
Delay in payment due to dispute (40 days)
Slow response by business unit
Dispute resolution & re-issue
Strengthen ATL communication with Billing by incentivisedroles
755None3
Mis-communication between ATL and Billing5
Delay in payment due to invoice dispute (40 days)
Customer has dispute with invoice
Review and confirm invoices
Need to study dispute issues for reduction in disputes, Focus on Price
804
Pricing database4
Price, Quantity or Work-scope does not agree with quote5
Customer disputes invoice delaying payment (40 days)
Invoice is incorrectIssue Invoice
Actions(What actions are
being done to eliminate the cause?)
RPN
DET
Controls(What controls are currently in place to catch or prevent this
failure?)
OCC
Causes(What is the root cause reason for
the failure?)
SEV
Failure Effects(How does the failure affect the function of
the step?)
Failure Mode
(Describe what could go wrong.)
Part/process(What is the
function of each step?)
Actions for improvement and next focus area identified• ATL’s compensation will be dependent on customer satisfaction scores to provide incentive for improved communication
• Measure occurrences of no payment due to lack of funds, communicate to customer with disciplinary action of shipment hold
• Need to further study source of disputes to resolve disputes
Failure Modes & Effects Analysis
How do we mitigate process
risk?What does the process look like?
Define Measure Analyze
Where should
we focus?
Hypothesis Testing
Two-Sample T-Test and CI: Weekly, Quarterly
N Mean StDev SE MeanWeekly 105 55.41 8.63 0.84Quarterly 8 55.50 8.21 2.9
Estimate for difference: -0.08908395% CI for difference: (-7.056468, 6.878301)T-Test of difference = 0 (vs not =): T-Value = -0.03 P-Value = 0.977 DF = 8
XQ = 55.50XW = 55.41
Q = 8.21σ̂W = 5.63σ̂
XQ = 55.50XW = 55.41
Q = 8.21σ̂W = 5.63σ̂
Conclusions:There is no significant difference between weekly and quarterlygrant dates.
Weekly vs. Quarterly Grant Date1/1/02 – 12/31/03
Hiring Location (Site)
Tota
l No
Erro
rs
TO - RMLTOSalesField
10
8
6
4
2
0
Boxplot of Total No Errors by Hiring Location (Site)
One-way ANOVA: Total No Errors versus Hiring Location (Site)
Source DF SS MS F PHiring Loc 3 2.12 0.71 0.31 0.821Error 117 269.95 2.31Total 120 272.07
S = 1.519 R-Sq = 0.78% R-Sq(adj) = 0.00%
Hiring location is not a significant
contributing factor to errors!
T-Test ANOVA
GenderChi- Square
What variables
are causing variation?
$ $
What is my project strategy?
Copyright 2005, AIT Group Inc. All rights reserved.
Copyright 2005, AIT Group Inc. All rights reserved. 13
Lean Six Sigma
Regression
Measure & Monitor
Standard Work
Material Replenishment
Cell or Process Design/To-Be Work Flow
Standard Job SheetPart N umber Part D escri pti on Part Famil y Date: Revisi on:
Quality Check Safety Standard Wor k
in Process Takt T ime Lead Ti me Number of Operators
Standard Job SheetPart N umber Part D escri pti on Part Famil y Date: Revisi on:
Quality Check Safety Standard Wor k
in Process Takt T ime Lead Ti me Number of Operators
15s 200s 350s 62s 401s
245s
190s 25s 33s 161s 191s
Operator 1 Operator3Operator 2
600s 3
2400172-1 Impell ar Casti ngs B
Standard Job SheetPart N umber Part D escri pti on Part Famil y Date: Revisi on:
Quality Check Safety Standard Wor k
in Process Takt T ime Lead Ti me Number of Operators
Standard Job SheetPart N umber Part D escri pti on Part Famil y Date: Revisi on:
Quality Check Safety Standard Wor k
in Process Takt T ime Lead Ti me Number of Operators
15s 200s 350s 62s 401s
245s
190s 25s 33s 161s 191s
Operator 1 Operator3
0Subgroup 10 20
0
500
1000
Indi
vidua
l Value
10/98Month
1X=167.4
3.0SL=253.4
-3.0SL=81.44
99
0
100
200
300
400
500
600
Mov
ing
Rang
e
R=32.333.0SL=105.6
-3.0SL=0.00E+0
99
Liner Web Break Downtime (min) by Month 98
Type of Control (Fix, Minimize, Standardize,
Measure & Monitor, Communicate, Audit) Detailed Description of Control
Facility Affected (Gas, Electric, Water)
Setting or Tolerance Prior to Controls
Control Set Point or Range
Management Requirements or Organizational Changes
Date Implemented or Projected to be Implemented
Responsible Individual
Fix, Communicate, Audit Install or enable screen savers on all computers Electric Random implementationAll computers with screen
saversCommunicated at DRL meeting, part of
security audit April, 2002Jacovides, Director
Steve, Security
Standardize, AuditEstablish a Facilities Coordinator to be responsible for DRL
facilities needs Gas, Electric, Water No individual responsiblePersonal Business Plan and
Six Month Reviews Change in job description, PBP's May, 2002 John Biafora
Fix, MeasureReduce water flow through SEM by replumbing and installing chiller Water 5 gal/ min, continuous 0 gal /min Authorize chiller repair June, 2002
John Biafora, Chris Thrush
Fix, Measure Reduce water flow through vacuum chamber Water 2 gal/min, continuous 1 gal/min, as needed Authorize replumb June, 2002John Biafora, Chris
Thrush
Fix, Measure, Communicate Thermostat control of outgoing water on MTS unit Water 2.4 gal/min, continuous
Temperature control, now flow only when using
instrumentAuthorize purchase of temperature
sensor June, 2002John Biafora, Tom
Ellis
Fix, Measure Reduce flow through Hall Effect system Water 4 gal/min, continuous2.5 gal/min, unit on only
when doing measurementsAuthorize replumb, communicate need
to have flow only during usage June, 2002John Biafora,
Joseph Heremans
Fix, Measure Reduce flow through e-beam evaporator Water 8 gal/min, continuous 6 gal/min Authorize replumb June, 2002John Biafora, Chris Thrush
Fix, Measure Reduce flow through environmental test chamber Water 4 gal/min, continuous3 gal/min, flow only during
testing Authorize replumb June, 2002John Biafora,
Tom Ellis
Fix, Measure, Communicate Manual operation of exhaust hoods Gas, Electric 94 k ft^3/min continuous94 k ft^3/min 36% of total
time Placard June-July, 2002John Biafora, all lab
users
Fix, Measure, Communicate Adjust pre temperature air box per season Gas, ElectricRandom excursions in
temperature 65 - 72 F Authorize facilities study June-July, 2002John Biafora, Fred
Scott
Fix, Standardize, Communicate Turn off unused equipment at 7:00 PM Gas, Electric, Water None
Turn off specific exhaust and return air systems that
do not jeopardize safety requirements
Lab Director authorize and communicate at group meeting May, 2002
John Biafora and Jones Lange and
LaSalle representative
Standardize, Monitor, MeasureProgram controls of specific exhaust and return air units that can be shutdown from 6:00 p.m. to 6:00 a.m. Mon. - Fri. Gas, Electric None
Shutdown specific exhaust and return air units from 6:00 p.m. to 6:00 a.m. Lab Director authorize June-July, 2002
John Biafora and Jones Lange and
LaSalle representative
Fix, Standardize, Audit, Measure & Monitor
Curtail all non-essential power usage during peak electrical draw from the grid. Credit from electric supplier. Electric None
Call from Detroit Edison to implement power curtailment
Lab Director authorize and communicate at group meeting July-August, 2002 John Biafora
Have we met our goals?
Design of Experiments:
2.52.01.51.00.50.0
OTD
Sp Price
LT
Profile
Pareto Chart of the Standardized Effects(response is Var, Alpha = .10)
OTDLTSp PriceProf ile
YNPost LTPrior
LTYNTier 2Tier 1
170
140
110
80
50
Var
ANOVA:
Factor Type Levels ValuesCustomer Profile fixed 2 Tier 1 Tier 2Special Price fixed 2 N YLead Time fixed 2 Post LT Prior LTOn-Time Delivery fixed 2 N Y
Source DF SS MS F PCustomer Profile 1 473 473 0.04 0.845Special Price 1 40905 40905 3.45 0.090Lead Time 1 13053 13053 1.10 0.316On-Time Delivery 1 75488 75488 6.37 0.028Error 11 130267 11842Total 15 260186
Special Pricing and On-Time Delivery are Significant Sources of Price Variation in the Co-Op System
Price Variance = f(OTD, Sp Price, LT, Profile)
Design of Experiments
How do we optimize critical inputs?
What does the future work flow look like?
Control Strategies
How do we sustain the
gains?
Improve Control
Copyright 2005, AIT Group Inc. All rights reserved.
Copyright 2005, AIT Group Inc. All rights reserved. 14
Lean Six Sigma Author
Steven Bonacorsi is a Senior Master Black Belt instructor and coach. He has trained hundreds of Master Black Belts, Black Belts, Green Belts, and Project Sponsors and Executive Leaders in Lean Six Sigma DMAIC and Design for Lean Six Sigma process improvement methodologies. Steven is a board member for the Boston Chapter of the Industry of Industrial Engineers. Full Bio: http://www.linkedin.com/in/stevenbonacorsi
Lean Six Sigma White Belt Certification:• Add Lean Six Sigma White Belt (Basic Awareness) Training and Certification to
your Resume or Job Skills. • Learn topics from one of the original Master Black Belts and world experts on
Value Stream Mapping, 5s, Process Capability, Deployment Planning, Roles and Responsibilities, FMEA Risk Analysis, Control Plans and more.
• Certificates will be signed for all who complete the 2 hour training session.
Copyright 2005, AIT Group Inc. All rights reserved. 15
Lean Six Sigma
Learn More about The AIT Group http://www.theaitgroup.com
Copyright 2005, AIT Group Inc. All rights reserved. 16
Lean Six Sigma Who is AIT?
• AIT is a premier provider of Lean, Six Sigma and Supply Chain solutions.
• Solutions are customized to the customer – not one size fits all.
• The company was started in 1998 by three individual that recognized extremely early in the industry how well Lean, Six Sigma and Supply Chain disciplines integrate.
• Our goal is the complete transfer of knowledge via client specific solutions – not training.
• Your instructors from AIT are Certified Master Black Belts and Lean Experts.
• We have worked with many different clients and some of the largest companies in the world.
• We have Offices in the US, Europe, Mexico and China.
Lean
Six Sigma
Supply ChainMgmt.
Value$
The AIT Group excels in implementation … not recommendation!The AIT Group excels in implementation … not recommendation!
The AIT Group is an international consulting firm that has been specifically designed to help
companies increase profitability by improving overall business performance and customer
satisfaction through the integrated application of:
www.theAITgroup.com