Please my customers How do I do more with less and still please my customers Lean/Six Sigma For Pass Bureau Association Presented by Michael Ryer Frontier

please my customers How do I do more with less and still please my customers Lean/Six Sigma For Pass Bureau Association Presented by Michael Ryer Frontier Airlines Continuous Improvement Manager (Retired)

Heres what I do for fun Lean/Six Sigma For Pass Bureau Association

I live in a tornado A pass bureau manager told me: We need to streamline our process, do more with less. We are pulled in 10 directions at one time. We receive a pass request and work them in date order. We have to touch one 4 to 5 times to see why its sitting in the mailbox. Agents attach their name to it and it sits until the more urgent ones are processed. Occasionally some are missed because the timed out. We have the same deal with company business (COBUS) travel. We work them by date, not when weve received them, so we may miss one thats been here a long time, or, the flight is full by the time we get to it. With COBUS, we may get the air done and hotel and car are still pending. We set it aside and start the next one. Then we have to determine if the hotel and/or car has confirmed and which employee the confirmation was for. Lean/Six Sigma For Pass Bureau Association

In the beginning was the Plan And then came the assumptions and the assumptions were without form and the Plan was completely without substance and the darkness fell upon the faces of the workers. The workers spoke amongst themselves, saying, This Plan is a crock of crap and it stinketh! And the workers went unto their supervisors and sayeth unto them, It is a pile of dung and none may abide the odor thereof! And the supervisors went unto their managers and sayeth unto them, It is a container of excrement and it is very strong such that none may abide it. And the managers went unto their directors and sayeth unto them, It is a vessel of fertilizer and none may abide its strength. And the directors went unto their vice presidents and sayeth unto them, It contains that which aids plant growth and is very powerful, indeed. The vice presidents went before the president and the chairman and sayeth unto them, This powerful new plan will actively promote the growth and efficiency of the company and this product line in particular. And the leaders looked upon the Plan, saw that it was good and it became POLICY.

Lean/Six Sigma For Pass Bureau Association Big Picture of Lean/Six SigmaWhat is it? Improvement Emphasis Time Reduced Costs (COQ*) Over Time

Lean/Six Sigma For Pass Bureau Association Big Picture of Lean/Six SigmaWhat is it? Improvement Emphasis Time Reduced Costs (COQ*) Over Time Drive Out Waste Identify Waste Five S Lean Tools and Techniques

Big Picture of Lean/Six SigmaWhat is it? Lean/Six Sigma For Pass Bureau Association Drive Out Waste Identify Waste Five S Lean Tools and Techniques Drive Out Variation Process Control Six Sigma Tools Improvement Emphasis Time Advanced Quality Systems Oversight Reduced Costs (COQ*) Over Time *Cost of Quality

Lean/Six Sigma For Pass Bureau Association Boeing Commercial Aircraft View of Lean, but, it is not just for manufacturing Lean Business Strategy Develop and Deploy a Lean Strategy to Ensure Lean Gains Lead Time Minimize Lead Time for Operational Flexibility On Time Delivery Use of Kanban Use Kanban and Build to Customers Demand Schedule E-Commerce Data Links for RFQ, Production and Billing to Ease Information Flow Standard Work Flow Use Takt Time, Standards and Continuous Improvement for Best Work Flow Set-Up Reduction Use Pallets, Shadow Boards and SMED to Speed Through Put Visual Management Production Status Available at a Glance for Exception Management Total Productive Maintenance Data Driven Equipment, Tooling and Machine Maintenance for More Up Time Method Sheets Optimize Method Sheets and Illustrate Entire Operation to Reduce Confusion 5-S (6-S adds Safety) Sort, Straighten, Shine, Standardize and Sustain Operational Efficiency Lean Element Desired Characteristics Deliver the Right Part, at the Right Time, to the Right Location, in the Right Packaging to Meet Customer Inventory Requirements

What is Lean/Six Sigma? W. Edwards Deming and 14 step methodology Goal Post Mentality Variation Standard Deviation Waste DMAIC Data Management We are pleasure/pain animals. If I have pain, I want to move away from it. Lean/Six Sigma helps define what is causing me pain and helps build a repeatable methodology to avoid it. To do this, I need to talk about some things: Lean/Six Sigma For Pass Bureau Association

Does it work? Boeing Aerospace - Reduced billing errors to zero, billing cycle time from 20 days to 3, reduced technical order processing time by 50% PIE Trucking - Reduced freight bill errors from 10% to 1% and improved productivity 30% US Department of Education - Reduced application processing time for certifying higher education institutions by 20% Virtua Health Care Clinic - Streamlining payroll process errors reducing rework by 78%, decreasing over-processing by 58%, and saving $3,000 in paper costs. Frontier Airlines Developed centralized weight and balance program. Saved $750 M in first year. Avoided major FAA LOI fine. Lean/Six Sigma For Pass Bureau Association

Demings 14 Points 1. Create a constancy of purpose toward improvement of product and service 2. Adopt a new philosophy about responsibility and leadership 3. Cease dependence on inspection to achieve quality 4. End the practice of awarding business to the lowest bidder. Instead, minimize your cost. 5. Improve processes 6. Institute training on the job 7. Adapt and institute leadership 8. Drive out fear of change 9. Break down barriers between departments 10. Eliminate slogans, exhortations and targets for the work force 11. Eliminate quotas for the workers and numerical goals for managers 12. Remove barriers robbing people of pride in workmanship 13. Provide education and self improvement for everyone 14. Put everyone in the company to work to accomplish transformation Lean/Six Sigma For Pass Bureau Association

Goal Post Mentality or if its in specification, its good to go! LSLUSL Target Value Lean/Six Sigma For Pass Bureau Association JUNK

What is variation? Cause and Effect-The notion of the predictability of something happening when a known set of circumstances are present Common Cause-Differences in the outcome of a process which are attributed to random happenings. Examples of common cause variation are: Floods Strikes Elections Assignable Cause-Differences in the outcome of a process attributed to a specific happening. Examples of assignable causes of variation are: People Process Material Machine Measurement Environment Lean/Six Sigma For Pass Bureau Association

Six Sigma is really about Standard Deviation Standard Deviation-Measures and quantifies variation. Its in the same units as the data TripBooking Time 115.00 25.00 325.00 4120.00 56.00 624.00 738.00 8147.00 961.00 1043.00 AVEREAGE48.40 SIGMA45.92 TripBooking Time 17.00 29.00 36.00 48.00 55.00 6 78.00 87.00 910.00 104.00 AVEREAGE6.90 SIGMA1.81 Lean/Six Sigma For Pass Bureau Association Same flights but different processing times. Which process is more in control? Not CapableCapable It is all aboutWASTE

WASTE We want to reduce WASTE over time Lean/Six Sigma For Pass Bureau Association USL Target LSL Over the long haul, we want less of this! Over the long haul, we want more of this! Performance Time UCL LCL Continual Improvement

WASTE Lets define WASTE There are defined kinds of waste: Waiting - for anything or anyone Excess Motion - motion or movement should add value to the product or service Conveyance - transporting farther than necessary, temporarily locating, restacking, or moving parts, people, and information Correction/Rework fixing junk Over-production - producing more that required or producing too soon Inventory - too much of anything is waste; anything unneeded is waste Processing - things the customer does not want nor recognize Lean/Six Sigma For Pass Bureau Association

WASTE Talk about a revolutionRemoving WASTE C=P+W+C+VC=P+W+C+V Lean/Six Sigma For Pass Bureau Association P = The pain of making a change W = The willingness of the folks in the process to make a change C = The cost, real and imagined, of making the change V = The vision of what the world will look like after the change Change is hard and it can be managed!

WASTE How do we get rid of WASTE? DMAIC is an acronym for: Define What is the problem, what is the existing process like, what does perfection look like? Measure How big is the problem, how often does it happen, what is the impact when it does happen, how does the process work without the problem? Analyze What does the data tell me about the problem? Improve What can I do to reduce or eliminate the problem? Control How do I make sure the problem never comes back? Lean/Six Sigma For Pass Bureau Association

First, we need to define our process Lean/Six Sigma For Pass Bureau Association Process Feed Back InputOutput Boundary

Define Customer Interfaces Lean/Six Sigma For Pass Bureau Association 123 This is the boundary between two processes. Process 1 generates products (deliverables) which feed into Process 2. The speed of delivery, quantity and quality are critical at this point. Feedback occurs across this interface to ensure Process 1 makes what Process 2 needs and Process 2 tells Process 1 if it is okay. S I P O C

How do we define the process? 1. Process Documentation 2. Identify areas where the process is not being followed Differences due to error? Differences due to personal preference? Differences due to doing it a better way? 3. What would happen if the process were run as designed? Lean/Six Sigma For Pass Bureau Association

Found some problems? Clean up em up with Five S Lean/Six Sigma For Pass Bureau Association The Five Ss are 1. Sort Segregate and discard un-needed stuff in the process area 2. Straighten Arrange and identify the needed things for the process 3. Shine Keep the process area neat and orderly on a daily basis 4. Standardize Run the process the same way, everyday 5. Sustain Do not let the process slip back into old ways

How do measure the process? In God we trust, all others bring facts Lets go see if what we think is a problem, really is a problem. Data Gathering Tools: Process Map Process Audits Time Motion Studies Review of Historical Data Review of Quality Problems Lean/Six Sigma For Pass Bureau Association

How do we analyze all this data? Lean/Six Sigma For Pass Bureau Association WASTE PeopleProcess MachineMaterial Goal = Reduce Waste Environment Measurement

How do we select what to improve? Sorting the trivial many from the significant few Multi-Voting Bang for the buck and return on investment Best ROI is 18 to 24 months Easy or Hard Low hanging fruit versus planting a new orchard PDCA/SDCA Define new performance requirements and how to get there and then how to sustain the new process Lean/Six Sigma For Pass Bureau Association

How do we control the new process? Capability analysis through audit and customer satisfaction Capture the process and keep it whole Mistake Proofing Standard Procedures Responsibility Audits Financial Analysis Did we save any time and money? Lean/Six Sigma For Pass Bureau Association

Where do we look for the next improvement? We have learned how to systematically look at our process We have established performance measures and metrics the process is capable of producing We focus on our customer needs and the airline needs for an efficient (no waste) and effective (meets internal and external customer requirements) process Lean/Six Sigma For Pass Bureau Association

Tha, Tha, Thats all folks

References The Black Belt Memory Jogger GOAL/QPC Lean Thinking - Womack and Jones Quality is Free Cosby What is Six Sigma Pande and Holpp Juran on Leadership for Quality Juran Schaums Outline Series, Statistics - Spiegel The Goal Goldratt Teaching the Elephant to Dance - Belasco Lean/Six Sigma For Pass Bureau Association

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Please my customers How do I do more with less and still please my customers Lean/Six Sigma For Pass Bureau Association Presented by Michael Ryer Frontier