6s SIX SIGMA
Continuous improvement Lean
Importance of CI & Lean methodologies in Logistics
Kesavakrishnan (Kesava) Keysight Technologies (formerly known as Agilent Electronic
Measurement Group)
6s SIX SIGMA
Continuous improvement Lean
Agenda
• Quick glance of various Quality methodologies (CI, Lean, 6sigma)
• Why its important?• Difference between Lean and CI• Useful quality tools (5S & VSM)• Real examples• Q & A
6s SIX SIGMA
Continuous improvement Lean
Difficulty/Complexity
Impa
ct
BreakthroughWorkoutTeams
Lean (“Kaizen”)Events
Enabling ProjectsProceed with caution (AVOID)
Empowered Problem Solving
Teams(Just Do It, Work-
Out)
Six Sigma®
ImprovementTeams
(DMAIC)
Design forSix Sigma
(DFSS)Projects
Quick glance of various Quality methodologies
6s SIX SIGMA
Continuous improvement Lean
Why it is important?
• Increase the efficiency level• Productivity improvement• Reduce the manpower cost• Improves the customer
satisfaction level• Increase the competitiveness
6s SIX SIGMA
Continuous improvement Lean
Difference between Lean and CI
Lean CI
• A quality-oriented thought process used to identify and remove waste (“Muda”) as defined by customer
• Create flow, eliminate waste through VSM and 5S tools
• Eliminate foreseeable defects (“mistake proofing”)
• Short-term projects (1-8 weeks)
• Lean tools, with spontaneous projects and basic measurement system
• Plan, Do, Check and Action (PDCA) simple methodology
• Identify the improvement and just do it (quick wins)
• No quality tools required
• Easy to identify & implement (just in a day or two)
6s SIX SIGMA
Continuous improvement Lean
Continuous Improvement - PDCA Cycle
– Plan: Plan for change. Define steps and predict results.
– Do: Execute plan. Take small steps in controlled environment.
– Check: Study the results.– Act: Take action to standardize
and improve process on broader scale.
The Plan-Do-Check-Act Cycle was made popular by W. Edward Deming
It helps to promote and drive Continuous Improvement
6s SIX SIGMA
Continuous improvement Lean
Lean Objectives
Eliminate MUDA (waste)
Enhance value delivered to customer
Unleash Innovation using Employee Engagement
CostDefectsLead timeWaste!
Productivity Customer satisfaction
Profit Quality
Cash flow
Cycle Time
Value add
Before
After
Non value add
Same work completed in less time and effort
6s SIX SIGMA
Continuous improvement Lean
Value & Waste
Value: Value is defined from the standpoint of the End/Ultimate customer. It can be expressed in the form of:
• a specific product and/or Service, which meets customer’s needs
• at a specific price• at a specific time
WasteAll other actions and unwanted features are by definition — WASTE. These add no value for the customer — simply raise costs of our business
6s SIX SIGMA
Continuous improvement Lean
Waste Categories
Extra Processing
Waiting
Motion
Inventory
Transportation
Overproduction
Defects/Inspection
Waiting Transportation
Overproduction
Inventory
People
Quantity
Quality
6s SIX SIGMA
Continuous improvement Lean
Waste Categories - Examples
Waste Category Office Examples
Overproduction Printing Paperwork out before it is really needed. Purchasing items before they are needed. Processing before the next person is ready for it.
Inventory Batch Processing Transactions or reports. Files waiting to be processed.
Waiting System Downtime, system response time, approval from others.
Extra Processing Extra Copies, unnecessary or excessive reports, transactions.
Defects Order entry errors, invoice error. Any error leading to re-work.
Excess Motion Walking to/from copier, fax machine other offices.
Transportation Excessive Email attachment, multiple hands-offs.
Underutilized People Limited employee authority and responsibility for basic task, management command and control, inadequate business tools available.
6s SIX SIGMA
Continuous improvement Lean
Lean Process Improvement Tool: “5S”
1. Sort (Seiri)Clearly distinguish necessary items and unnecessary items; eliminateunnecessary items.
2. Simplify or Straighten or Systematize (Seiton)Put the necessary items in their place and provide easy access.
3. Sweep or Shine (Seiso)Clean everything, keep it clean daily, and use this process to inspect for defects.
4. Standardize (Seiketsu)Create visual controls and guidelines for keeping the workspace organized and clean. This is to ensure we do the right thing, the right way, every time.
5. Sustain or Self-discipline (Shitsuke)Implement disciplines and training to ensure the 5S standards are followed by everyone.
6s SIX SIGMA
Continuous improvement Lean
Making 5S Work
5S is an organizational and cultural change, not a one-time action
• Involves everyone in the organization, top to bottom
• Practiced daily and with intention
• Must involve suppliers & customers where appropriate
• Integrates nicely with the “Plan-Do-Check-Act” cycle
6s SIX SIGMA
Continuous improvement Lean
Value Stream Mapping
1. Provide a high level, “block” overview
2. Depict primary flows: info, material, $
3. Emphasize TIME
4. Goal: to highlight waste opportunities (not hide them)
Value Stream Mapping is an important lean exercise
designed to…
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6s SIX SIGMA
Continuous improvement Lean
Value Stream Map: getting to a Future State
The Value Stream Map becomes an important tool
to project future improvement projects and
detail their impact.
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Continuous improvement Lean
Real life examples - Admin Filling RestructuringBefore After
Disorganized and unstructured
Filling as per Sales Order Serial Number
• No defined process• No defined frequency• High retrieval time (~4 hours)• Low retrieval % (<70%)• Audit non-compliance
Labeled Cabinets
Five “S” implemented Date wise archiving
•Standard Process defined• Frequency and ownership defined • Low retrieval time (~3 min)• High retrieval % (~100%)• Audit Compliance
5S
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Continuous improvement Lean
Sales Admin Printer movement
Before
After
To here (Printer)
Motion Waste
From here(Workstation
)
6s SIX SIGMA
Continuous improvement Lean
Sales Admin EbizCommon Sales, Support and SOM web invoices in-house printerBefore After
Extra Process
ing steps
Sales CSR SOM CSR Support CSR
Ebiz Invoicing CSR does invoicing in customers portal
Multiple printersCommon printer at ATI
Sales CSR SOM CSR Support CSR
• Non standard process• Delayed invoicing• Missing invoices• Collections follow-ups
• Standard and Simplified process• Timely invoicing• Rare Missing invoices• Limited Collections follow-ups
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6s SIX SIGMA
Continuous improvement Lean
Kaizen Action 1------ motion, Poka-Yoke
Before AfterI need to find the 15 bl-in screw driver, let me look
for…
With the green label, now I can quickly find the right
screw driver.
6s SIX SIGMA
Continuous improvement Lean
Kaizen Action 2------ motion, reduce 1 work bench
Before After
Empty
1 operator has to transmit between two work benches for her assembling process
Reduce motion and Saved 10m2 space by optimizing process flow with 1 work bench reduction.
6s SIX SIGMA
Continuous improvement Lean
Kaizen Action 3------material movement, reduce 4 work benches to 2 benches
Before After
3 testers and 4 work benches 2 testers & 2 work benches after combining testers, saved 8M2 space
Empty
6s SIX SIGMA
Continuous improvement LeanGroup/Presentation TitleAgilent Restricted
Month ##, 200X
Kaizen Action 4------WIP reduction
Before After
40 units
20 units
15 units
5 units
6s SIX SIGMA
Continuous improvement Lean
The authors of Lean Thinking point to these types of benefits…
1. Double productivity
2. Cutting throughput times by 90%
3. Reducing inventory by 90%
4. Errors/Defects reduced by 50%
5. Work-related injuries reduced by 50%
6. Time to market for new products cut in half (50%)
7. Capital investment modest to neutral
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Continuous improvement Lean
Q & A