6811332 lean six sigma presentation 1
TRANSCRIPT
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1©Vincent Gaspersz, CFPIM, SSMBB
Lean Sigma Management System(Streamlining The Business Process)
Presented By:
Vincent Gaspersz, CFPIM, SSMBB
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2©Vincent Gaspersz, CFPIM, SSMBB
Agenda
�Focus on Lean (Lean Definition, Lean House, Lean Principles)
�Focus on Six Sigma (Contemporary Six Sigma Approach)
�Lean Sigma Integrated Management System (Approach and Benefits)
�Lean Sigma Roadmap
�Questions
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3©Vincent Gaspersz, CFPIM, SSMBB
QUESTION?? Do you know your process cycle efficiency?
? How much time do you need to produce one piece of product from the beginning to the end of processes?
? What is your capacity? Are you operating at optimum capacity? Do you know your plant OEE (Overall Equipment Effectiveness)?
? Do you know your plant capability process? At what sigma level, do your plant operating now?
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4©Vincent Gaspersz, CFPIM, SSMBB
ISO 9000:2000
Quality Initiatives
Statistical Quality Control
Continuous Improvement/Kaizen
Malcolm Baldrige National Quality Award
Total Productive Maintenance
Supply Chain Management
Quality Circles
ISO 9000 Standards
Reengineering
Theory of Constraints
Lean Manufacturing
Six Sigma Quality
Lean Sigma
??????
ISO 9000:2000
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5©Vincent Gaspersz, CFPIM, SSMBB
Focus on Lean(Lean Principles)
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6©Vincent Gaspersz, CFPIM, SSMBB
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7©Vincent Gaspersz, CFPIM, SSMBB
Achieving “Flow” is a Key Objective inApplying Lean Principles within an Enterprise
Achieving “Flow” is a Key Objective inApplying Lean Principles within an Enterprise
INFORMATION FLOW
MATERIAL FLOW
ConceptProduct
DefinitionDetailedDesign
Test &Validation
ProductionProductSupport
Pre-Concept
Cu
sto
me
rV
alu
e
Lean Fundamentals
Lean Product Development Process
“The continuous movement of products and informationthrough the value stream. The goal is to minimize ‘idle
time’ which equates to waste . . .”
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8©Vincent Gaspersz, CFPIM, SSMBB
Lean Manufacturing HouseBest Quality - Lowest Cost - Shortest Lead Time
Through shortening the Manufacturing Flow by Eliminating Waste
Just in Time“The right part
at the right time
in the right amount”
• Continuous Flow• Pull System• Level Production(Heijunka)
Jidoka“Built in Quality”
• Manual / AutomaticLine Stop
• Labor-MachineEfficiency
• Error Proofing• Visual Control
Flexible, Capable,
Highly Motivated
People
Standardized WorkTotal Productive Maintenance
Robust Products & ProcessesSupplier Involvement
Operational Stability
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9©Vincent Gaspersz, CFPIM, SSMBB
The 5 Interdependent Lean Principles
1 2
5
4 3
Lean is a
systematic approach to identifying and eliminating waste (non-value-added activities) through value stream continuous improvement by flowing the product at the pull of the customer in pursuit of perfection
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10©Vincent Gaspersz, CFPIM, SSMBB
Step 1. Customer Value Definition
� Value = Value-Added (VA) + Non-Value-Added (NVA)
� Non Value Added = WASTE
“Anything that adds Cost
to the product
without adding Value” = WASTE
“Anything that adds Cost
to the product
without adding Value” = WASTE
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• Value-Added (VA) Activities must meet the following three criteria:
1. The customer must be willing to pay for the activity
2. The part or object must change
3. It must be done right the first time
All other activities are Non-Value-Added (NVA)
and considered sources of waste !!!
The Key Principles of “Lean” are to Identify Non-Value-Added Activities and Find Ways to Eliminate Waste
The Key Principles of “Lean” are to Identify Non-Value-Added Activities and Find Ways to Eliminate Waste
Value-Added vs. Non-Value-Added
Remember: All Three Criteria Must be Satisfied
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12©Vincent Gaspersz, CFPIM, SSMBB
Lean Manufacturing� is a manufacturing philosophy which shortens the time line between
the customer order and the product shipment by eliminating waste.
CustomerOrder
Waste ProductShipment
Time
CustomerOrder
ProductShipment
Time (Shorter)
Business as Usual
Waste
Lean Manufacturing
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13©Vincent Gaspersz, CFPIM, SSMBB
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Step 2. Value Stream Analysis
VALUE STREAM MAPPING
Follow a “product” or “service” from beginning to end, and draw a visual representation of every process in the material & information flow. Then, draw (using icons) a “future state” map of how value should flow.
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Value Stream Map
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18©Vincent Gaspersz, CFPIM, SSMBB
Process Cycle Efficiency =
Total Value-Added Time/
Total Cycle Time =
4/116,5 = 0,0343 = 3,43%
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19©Vincent Gaspersz, CFPIM, SSMBB
Lean: Value vs Non-Value
Value-added Ratio at “Lean” company
50% Non-value-added 50% Value-added
Value-added Ratio at typical manufacturing company
95% Non-value-added5% Value
Toyota is 43%Japan is 50%
North America is 70 to 95%
Receive Order Ship Product
= Value-adding Operation Time (actual assembly or manufacturing operations)
= Non-value-adding Time (time customers will not pay for, such as rework, moving)
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20©Vincent Gaspersz, CFPIM, SSMBB
97% NVA3%VA
Most “Traditional” Process Improvement
. . . Achieve this . . .
97% NVA
Teams Attack this . . .
Typical Value Stream Ratio of Value-Added to Non-Value-Added Activity
. . . and Ignore this
Source: C. Fiore; Lean Strategies for Product Development, ASQ, 2003
Where’s the Real
Opportunity?
The Process Improvement “Pitfall”
Lean Teams
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Current State Value Stream Map
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Step 3. Continuous Flow
� Continuous Flow Through Value Stream� Creates less inventory
� Lower throughput time
� Increases production
Can be achieved by:� Improving shop floor layout (not restrict or add movement,
clean and organized, cell layout, meet the customer demand)
� Reducing in active (obsolete) inventory
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Continuous Flow Production
Flow with JIT
Traditional Flow
CustomersSuppliers
Customers
Suppliers
Production Process
(stream of water)
Inventory (stagnant
ponds) Material
(water in
stream)
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25©Vincent Gaspersz, CFPIM, SSMBB
Takt Time
Takt Time Volume (Daily production requirement)
Time (Available seconds per working day) =
Cycle Time =Actual time required for a worker to complete one cycle of
his/her process. For a machine or cell, time from completion
Of one item to completion of the next item
Sets pace of production to
match pace of sales.
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Continuous Flow Improvement
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Continuous Flow Improvement
A D ECB
1 min.Takt Time (1 min.)
Operators
A D ECB
1 min.Takt Time (1 min.)
Operators
Cycle Time
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Future State Value Stream Map
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29©Vincent Gaspersz, CFPIM, SSMBB
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BENEFITS OF CREATING FLOW
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Step 4. Pull System� Pull the product through the value stream� Authorize production� Capture Work-In-Process (WIP)
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5. PERFECTION� Create a clear vision of perfection
�Maximize customer value through NVA reduction and Bottom Line improvement through Value Stream
� Make waste visible and evident.“The continuous movement of products and information through the value stream. The goal is to minimize ‘idle time’ which equates to waste . . .”
� Problem solving. Achieving “Flow” is a Key Objective in Applying Lean Principles within an Enterprise
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FOCUS ON SIX SIGMA(Contemporary Approach)
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Focused on Customer Value
Historical Six SigmaHistorical Six SigmaHistorical Six SigmaHistorical Six Sigma
Value StreamValue StreamValue StreamValue StreamCustomerCustomerCustomerCustomer
ValueValueValueValue
Defect ReductionDefect ReductionDefect ReductionDefect Reduction
LSLLSLLSLLSL USLUSLUSLUSL
Contemporary Six Sigma Contemporary Six Sigma Contemporary Six Sigma Contemporary Six Sigma
(Lean Six Sigma)(Lean Six Sigma)(Lean Six Sigma)(Lean Six Sigma)
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40©Vincent Gaspersz, CFPIM, SSMBB
Quality Processes Yield Quality Results
ConsistentProcess
DesiredResults
InconsistentProcess
InconsistentResults
Traditional = People doing whatever they can to get results
Six Sigma = People using standard process to get results
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Market
Inputs Business
Processes
SuppliersCritical Customer
RequirementsProcess
Outputs
Defects
Variation in the Process Output causes Defects that are seen by the customer
Output Variation is caused by Variation in Process Inputs and by Variation in the Process itself
Contemporary Six Sigma Focus on the Reduction of Variation that Generates
Defects for Customers
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Master
Black Belt
Black Belts
Green Belts
Team Members
Quality Fundamentals/ Kaizen Now
Ch
am
pio
ns
Mentor, trainer, and coach of Black Belts and others in the organization.
Leader of teams implementing the six sigma methodology on projects.
Delivers successful focused projects using the six sigma methodology and tools.
Participates on and supports the project teams, typically in the context of his or her existing responsibilities.
Responsible for supporting the Deployment Strategy
within Line of Corporate Business/Customer Segment Deployment
Champions
Six Sigma
Taining
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LEAN SIGMA(Streamlining The Business Process)
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Lean Six Sigma
Lean� Flow Focused� Reduced Flow Time � Remove Waste� Faster Throughput � Less Inventory
Six Sigma� Quality Focused� Uniform Process Output� Reduce Variation� Improve Process Capability� Improved Quality
Lean and Six Sigma are Complimentary � Lean Six Sigma
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Lean Six Sigma Tools
Lean Tools� Value Stream Analysis� 5-S� Kaizen Blitz� One Piece Flow� Pull Systems/Kanban� Work Cells� Visual Control� TPM� Vendor Managed Inventory� etc
Six Sigma Tools� DMAIC/DMADV Approach � Statistical Process Control� FMEA � Capability Analysis� ANOVA/ANCOVA� DOE/Taguchi Experiments� Process Optimization� etc
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Value Stream
(Continuous Flow Improvement)
(Random Improvement)
(Good Luck)
2 MBB,25 BBs,
100 GBs,500 YBs
Value Stream
Flexible, Capable,Highly Motivated
(Good Luck)
2 MBBs,25 BBs,
100 GBs,500 YBs
(Random Improvement)
(Systematic Continuous Flow Improvement)
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Which Business Function Needs Lean Six Sigma?
As long as there is a process that produces an output, whether it isa manufactured product, data, an invoice, etc…, we can apply the
Lean Six Sigma Breakthrough Strategy!!!!
Lean-
Six Sigma
MFG.
DESIGNSERVICE
PURCH.
MAINT.
ADMIN.
QA
Marketing
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Lean Six Sigma Product Development Overview
Phase 2Concept
Phase 1Pre-concept
Phase 3Product
Definition
Phase 4DetailedDesign
Phase 5Integration
& TestValidation
Phase 6Production &
Operation
CUSTOMERCTQ’S
BUSINESSCTQ’S
TECHNICALCTQ’S
TECHNICALREQUIREMENTS
LIST
Manufacturing ProcessControl
Lean Six Sigma
Product Development Process
Lean Product Development Supplier Rationalization
Quality Improvement
Cycle Time and Cost Performance Improvement
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Lean Six Sigma Impact on Process!!
First Time Yield
(FTY) Quality• Standardized Work
• Error Proofing
• Root Cause Analysis
– Problem Solving
• Predictable Processes
– Machine Reliability
– Total Productive
Maintenance
– Improved up-time
• Reduced scrap & repairs
People• Skilled, multi-function
workers
– Training
– Employee development
• Black Belt/Green Belt
Projects Team:
– Quality
– Safety
– Productivity
– Cost
– ROI Project
• Structured feedback meetings
• Empowerment
– Involvement
– Accountability
– Responsibility
– Authority
Lean Six Sigma
Approach
• Customer Value Definition
• Value Stream Analysis
• Continuous Flow
• Pull production
• Continuous Flow
Improvement (NVA/Waste
Elimination and Variation
Reduction/Process
Capability Improvement)
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BENEFIT OF LEAN SIGMAMANAGEMENT SYSTEM
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LEAN SIGMA ROADMAP
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GARIBALDI INDUSTRIES APPROACH
ISO 9001:2000Lean-Sigma
On-time
Delivery
Zero Defects
100% Customer
Satisfaction
High Quality Glass Product
Process
Minimum Lead Time
Dual Kanban
MaterialMachineLaborMin.Input
Max.Output
Standardized Product & Processes (Procedures)
CompetitiveAdvantage
ROI (MINIMUM): ??%/year
Garibaldi Approach:
• Increase capacity--without adding more people & resources
• Reduce cost of goods sold
• Maintain or reduce price to be competitive price
• Increase sales
• Increase reward & recognition to all Garibaldi Employees
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The End
Smarter:
• Shorter Cycle Time
• Smoother processes
• Simpler rules or procedures
SMARTERSpecific Goals
Measurable
Achievable
Result-oriented
Timely
Empowerment
Reward & Recognition
Contact:Vincent Gaspersz, CFPIM, SSMBBPhone: 0251-332933 or
0813-1940-6433E-mail: [email protected]