©2005 rucker & associates, inc. all rights reserved. 1 leansigma transformation overview
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©2005 Rucker & Associates, Inc. All Rights Reserved.©2005 Rucker & Associates, Inc. All Rights Reserved.
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LeanSigma Transformation Overview
©2005 Rucker & Associates, Inc. All Rights Reserved.©2005 Rucker & Associates, Inc. All Rights Reserved.
2
Lean Sigma
A blend of Lean Manufacturing and Six Sigma improvement tools
Applied using Kaizen Methodology
Lean Sigma generates rapid, team-based results
©2005 Rucker & Associates, Inc. All Rights Reserved.©2005 Rucker & Associates, Inc. All Rights Reserved.
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60s
70s
80s
90s
00s
DemingDeming
Quality Improvement ToolsQuality Improvement Tools
Reduce VariationReduce Variation
Six Sigma (Motorola)Six Sigma (Motorola)
Toyota Production SystemToyota Production System
Just-in-TimeJust-in-Time
LeanLean
Lean SigmaLean Sigma
LeanLean Six SigmaSix Sigma
FordFord
TQMTQM
History of Lean SigmaHistory of Lean Sigma
©2005 Rucker & Associates, Inc. All Rights Reserved.©2005 Rucker & Associates, Inc. All Rights Reserved.
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LEAN Process Evolution in
Lean TransformationWaste Reduction
People
Equipment
Materials
Space Variation Reduction
Capability Improvement
Quality Improvement
Demand SmoothingFlow Consistency
Flow Predictability
©2005 Rucker & Associates, Inc. All Rights Reserved.©2005 Rucker & Associates, Inc. All Rights Reserved.
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Value-Add vs. Non-Value-Add
Value-Adding Activities• Transform materials and
information into products and services the customer wants
Non-Value-Adding Activities• Consume resources, but don't
directly contribute to product or service
©2005 Rucker & Associates, Inc. All Rights Reserved.©2005 Rucker & Associates, Inc. All Rights Reserved.
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Value AddedEssential processes that transform inputs into outputs that are necessary to meet customer’s requirements
STREAMLINESTREAMLINE
Business Value AddedProcesses deemed necessary to support, control, and monitor internal business functions but have little or no perceived value to the customer
MinimizeMinimize
Non Value AddedProcesses that contribute to neither customer satisfaction nor improved business operations
EliminateEliminate
Lean Approach to VA – NVA - BVA
©2005 Rucker & Associates, Inc. All Rights Reserved.©2005 Rucker & Associates, Inc. All Rights Reserved.
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Wastes in Manufacturing
• Defective products• Overproduction• Inventories • Excess motion
Lead time reduction: identify and eliminate wasteLead time reduction: identify and eliminate waste
• Processing• Transportation• Waiting
OPERATIONAL LEAD TIMEOPERATIONAL LEAD TIME
Wasted Time and Activity
Core Process Value
Excessive Motion(Walking to Next Task, etc.)
Defective Products(Identifying, Handling, Fixing)
UnneededProcessing Time
Waiting(Often Result of
Unbalanced Tasks)
Transportation(Movement toStorage area)
ExcessiveInventories
Overproduction
©2005 Rucker & Associates, Inc. All Rights Reserved.©2005 Rucker & Associates, Inc. All Rights Reserved.
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Production Lead Time
TypicalCompany
1%
99%
Value-Added Non-Value-Added Improvement
Minor Customer
ImpactTraditional
Improvement
0.5%
99 %
0.5%
Lean WasteReduction 49.5%
1%
49.5% Major Customer
ImpactLead Time
©2005 Rucker & Associates, Inc. All Rights Reserved.©2005 Rucker & Associates, Inc. All Rights Reserved.
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OrderEntryOrderEntry
ProductionPlanning
ProductionPlanning SuppliersSuppliers ManufacturingManufacturing DistributionDistribution CustomersCustomers Accounts
ReceivableAccounts
Receivable
O-EO-E ProdPlanProdPlan
SuppSupp MFGMFG DistDist CustCust A/RA/R
TimeTime
Operational Lead TimeOperational Lead Time
AdminAdmin
Business Process Kaizen Business Process Kaizen
Shop floor Kaizen
Time-Based StrategiesTime-Based Strategies
Lead-Time ReductionLead-Time Reduction
Critical for driving improvement to your customersCritical for driving improvement to your customers
©2005 Rucker & Associates, Inc. All Rights Reserved.©2005 Rucker & Associates, Inc. All Rights Reserved.
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Lead-Time Reduction Impacts
• Cost
• Quality
• Delivery
©2005 Rucker & Associates, Inc. All Rights Reserved.©2005 Rucker & Associates, Inc. All Rights Reserved.
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Lean Sigma – Benefits Your Business
• Improves Quality & Reliability
• Rapid & dramatic improvements in efficiency and productivity
• Creates Culture of Continuous Improvement
• New Competitive Advantages
©2005 Rucker & Associates, Inc. All Rights Reserved.©2005 Rucker & Associates, Inc. All Rights Reserved.
12
Kaizen Breakthrough Methodology
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Day 1
Training
Day 2
See Process, Baseline, Generate Ideas
Day 3Try Storm, Implement
Day 4
Refine, Stabilize, Document
Day 5
Sustain, Report Out
On
e W
eek
©2005 Rucker & Associates, Inc. All Rights Reserved.©2005 Rucker & Associates, Inc. All Rights Reserved.
Just in Time
Takt
One Piece Flow
Pull
People and Partners
5S: Sort, Set in Place, Shine, Standardize, Sustain
TPM
Production Smoothing
Philosophy (Long Term Thinking)
Jidoka
Elim
inat
ion
of W
aste
Time Based StrategyLean Production System
“The Rule Book”
Base Management
Decisions on a long-term
philosophy
Kaizen Breakthrough Methodology
Problem Solving (Continuous Improvement and Learning)
Go see for yourself to thoroughly understand the situation
Monday Train
Tuesday Discovery
Wednesday Change
Thursday Sustain
Friday Communicate
Grow Leaders
who live the philosophy!
Respect, develop,
and challenge
your people
©2005 Rucker & Associates, Inc. All Rights Reserved.©2005 Rucker & Associates, Inc. All Rights Reserved.
Determine the Defect Y
Establish Process Performance Y
Evaluate Measurement System Y
Evaluate Standard Operations Y
Identify Root Causes X’s
Develop Solutions X’s
Prioritize & Implement Solutions Vital Few X’s
Test Solutions & Verify Results Vital Few X’s
Refine Standard Operations Vital Few X’s
Validate Measurement System Vital Few X’s
Implement Control System & Audit Plan Vital Few X’s
Determine Process Capability Y
MeasureMeasureMeasureMeasure
AnalyzeAnalyzeAnalyzeAnalyze
ImproveImproveImproveImprove
ControlControlControlControl
Lean Sigma Project PhasesLean Sigma Project PhasesLean Sigma Project PhasesLean Sigma Project Phases
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Project ImplementationProject ImplementationProject ImplementationProject Implementation
Measure Phase – 5 day Kaizen
Day 5Day 4Day 3Day 2Day 1
• Lean Sigma Overview• Kaizen
Breakthrough Methodology
• Lean Sigma Measure Tools
• Identify defect, “Y”, & project
scope
• Observe Process &
Collect Live & Historical
Data• Enhanced
Spaghetti Map
• Quality Map• Verify Standard
Operations
Teach & Do:
Teach & Do:
Training & Scope
• Determine Process
Capability• Measurement
System Analysis
• Improve measurement
system, if necessary
• Quick kills
• Comparative Analysis
• Basic Quality Tools
• Cause & Effect Chart
• Gather Additional
Data if Required
Teach & Do:
• Presentation of Measure
Phase
©2005 Rucker & Associates, Inc. All Rights Reserved.©2005 Rucker & Associates, Inc. All Rights Reserved.
Project ImplementationProject ImplementationProject ImplementationProject Implementation
Day 5Day 4Day 3Day 2Day 1
• Lean Sigma Measure Review
• Update Information w/Additional
Data Collection• Lean Sigma
Analyze/ Improve Tools
• Basic Analytical
Tools• Hypothesis
Testing• Identify Root
Cause• Shop Floor Observations
Teach & Do:
Teach & Do:
Training & Scope
• Implement Improvements
• Mistake Proofing
• Collect Data
• Verify Improvements
through Hypothesis
Testing• Refine Standard
Operations
Teach & Do:
• Presentation of Analyze/
Improve Phase
Analyze/Improve Phase – 5 day Kaizen
©2005 Rucker & Associates, Inc. All Rights Reserved.©2005 Rucker & Associates, Inc. All Rights Reserved.
The Lean Sigma ProcessMeasureMeasureMeasureMeasure AnalyzeAnalyzeAnalyzeAnalyze ImproveImproveImproveImprove ControlControlControlControlDetermine performanceVerify measurement systemIdentify Y & preliminary “x’s”
Narrow the field to the vital few “x’s”
Identify & implement Kaizen improvements for vital few
Verify improvementsOptimize settings for vital
few
Control the process to maintain the gains
Establish a plan to control & review the process
DeliverablesDeliverablesProblem statementFinan. & customer impact“Y” & defect definitionPreliminary “x’s” identifiedQuality mapZst & ZltMSA
Root cause determinationCorrelation of vital few
“x’s” with “Y”Graphical & statistical
analysis of “x’s”
Refined standard opsMistake proof processEstimate of improved
performanceKaizen results & newspaperTrain operators
Results analysis & process verification
Develop control planIdentify leverage
opportunities
Common ToolsCommon ToolsQuality mappingC & E diagramPareto analysisCapability analysisGage R&RComparative analysis
HistogramsBox & whiskerMatrix plotsRun chartsANOVALinear regression Multivariate regressionBinary logistic regression
DOERisk assessment
(improvement)Mistake proofing
(improvement)Statistical tolerancing
Control plan (SPC)Mistake proofing (controls)Risk assessment (controls)
©2005 Rucker & Associates, Inc. All Rights Reserved.©2005 Rucker & Associates, Inc. All Rights Reserved.
18
Questions?
Lean Sigma Transformation Overview