Lean Six Sigma Toolkit Lean Overview

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2007 Expedia Inc. 1

Lean Six Sigma ToolkitLean Overview

2007 Expedia Inc. 2

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2007 Expedia Inc. 3

Purpose & Agenda

The purpose of this program is to provide the key concepts and skills for understanding some of the basic tools used in evaluating a process

Our Agenda Overview of the concepts and tools used to create a lean

enterprise

Objectives and Expectations

By the end of this module, participants should understand: What are the elements of a lean enterprise How Lean supports Key Business Objectives Strategy and Tactics of a Lean Transformation Lean Methods and Tools

2007 Expedia Inc. 4

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2007 Expedia Inc. 5

Today we are going to focus on the concepts and tools of Lean

Origins of Lean Lean has been around a long time:

Pioneered by Ford in the early 1900s (33 hrs from iron ore to finished Model T, almost zero inventory but also zero flexibility!)

Perfected by Toyota post WWII (multiple models/colors/options, rapid setups, Kanban, mistake-proofing, almost zero inventory with maximum flexibility!)

Known by many names: Toyota Production System Just-In-Time Continuous Flow

Typically based in manufacturing/production, but also highly applicable to transactional projects

Outwardly focused on being flexible to meet customer demand, inwardly focused on reducing/eliminating the waste and cost in all processes

Just

-in-T

ime

Heijunka

ToyotaProduction System

People

People

People Jid

oka

Foundations: The Toyota Production System

Just

-in-T

ime

Heijunka

ToyotaProduction System

People

People

People Jid

oka

Just

-in-T

ime

Heijunka

ToyotaProduction System

People

People

People Jid

oka

Foundations: The Toyota Production System

3Establish

Flow

4Implement

Pull

5Work to

Perfection

1Specify Value

2 Map the

Value StreamFive Principlesof Lean

3Establish

Flow

4Implement

Pull

5Work to

Perfection

1Specify Value

2 Map the

Value StreamFive Principlesof Lean

Processing WaitingMotion

InventoryMoving ThingsOverproduction

Defects/InspectionIntellect

Eight TypesOf Waste Processing

WaitingMotion

InventoryMoving ThingsOverproduction

Defects/InspectionIntellect

Eight TypesOf Waste Lean

ConsumptionLean

Consumption

QuotationRequest

DetermineSSC

SalesOffice

Get Agency #(GLink /

Spreadsheet)

Get RequiredDetails Input Data Print Quote Log Quote Package

Head Office Policyholder Head OfficeCommissions KAE IFAKAE IFA

Phase II Lean Event - Value Stream Mapping - Current State (GLINK)

- Inv Funds- NRD

- Commission- WOP

- Existing Cont- Authority

5 mins 2 mins 0 - 30 mins10 mins1-30 mins

5 mins - 30 secs

0 0 0

0 minsnon-batch

or Lengthof day

remaining

Lean Phase II QuotationsEvent

16th November. 2004Cardiff Sales Offiice

Touch Time: 28.5 mins

Cycle Time: Variable (2.5-10.5 Hours)(Working to end of day post process)

Post

0-7Hrs2Hrs

Man: 1min

1-20 mins5 mins 1 min

1 min - 3Hours

1 min

Policyholder

0

Volume:9 Per Region Per Day

H igh

er A

vaila

b ilit

y

Low

er C

osts

Product Diversification

Higher Quality

ReliabilityImproved Environment

Distinguish the necessary f rom the unnecessary

Set InOrder

Make a habit of maintaining

established procedures

Sustain

Sort

Standardise

A place for everything and

everything in its place

Keep clean and ready to use

Prevent any setbacks in the first 3ss

Shine

High

er A

vaila

b ilit

y

Low

er C

osts

Product Diversification

Higher Quality

ReliabilityImproved Environment

Distinguish the necessary f rom the unnecessary

Set InOrder

Make a habit of maintaining

established procedures

Sustain

Sort

Standardise

A place for everything and

everything in its place

Keep clean and ready to use

Prevent any setbacks in the first 3ss

Shine

Tools Value Stream Mapping

Tools 5S

QuotationRequest

DetermineSSC

SalesOffice

Get Agency #(GLink /

Spreadsheet)

Get RequiredDetails Input Data Print Quote Log Quote Package

Head Office Policyholder Head OfficeCommissions KAE IFAKAE IFA

Phase II Lean Event - Value Stream Mapping - Current State (GLINK)

- Inv Funds- NRD

- Commission- WOP

- Existing Cont- Authority

5 mins 2 mins 0 - 30 mins10 mins1-30 mins

5 mins - 30 secs

0 0 0

0 minsnon-batch

or Lengthof day

remaining

Lean Phase II QuotationsEvent

16th November. 2004Cardiff Sales Offiice

Touch Time: 28.5 mins

Cycle Time: Variable (2.5-10.5 Hours)(Working to end of day post process)

Post

0-7Hrs2Hrs

Man: 1min

1-20 mins5 mins 1 min

1 min - 3Hours

1 min

Policyholder

0

Volume:9 Per Region Per Day

H igh

er A

vaila

b ilit

y

Low

er C

osts

Product Diversification

Higher Quality

ReliabilityImproved Environment

Distinguish the necessary f rom the unnecessary

Set InOrder

Make a habit of maintaining

established procedures

Sustain

Sort

Standardise

A place for everything and

everything in its place

Keep clean and ready to use

Prevent any setbacks in the first 3ss

Shine

High

er A

vaila

b ilit

y

Low

er C

osts

Product Diversification

Higher Quality

ReliabilityImproved Environment

Distinguish the necessary f rom the unnecessary

Set InOrder

Make a habit of maintaining

established procedures

Sustain

Sort

Standardise

A place for everything and

everything in its place

Keep clean and ready to use

Prevent any setbacks in the first 3ss

Shine

Tools Value Stream Mapping

Tools 5S

2007 Expedia Inc. 6

Using Lean Tools The goal of Lean focused improvement projects is to increase the

speed of a process Controlling and reducing Cycle Time (and cycle time variability),

will generate faster feedback cycles on improvement projects - increase process velocity and thus cycles of learning

In addition, controlling and reducing cycle time (and cycle time variability) is a key driver to:

Facilitating productivity improvements (reduced cost) and capacity improvements (increased revenue)

Remember: reducing cycle time shows us where the rocks are!

Install workplace organization/visual systems Standardize & mistake-proof operations Redesign operations for steady flow Redesign operations from push to pull Rapid improvement via Kaizen events

2007 Expedia Inc. 7

Using Lean Tools

Application

Tool

Process Improvement

(Quality) Phase Applied (DMAIC)

Process Efficiency

(Lean)Expedia Six Sigma Training

Activity Network DiagramDefine,

Analyze, Improve

Black Belt training

Affinity diagram Define, Measure, Improve Green Belt training, Champion training, Kaizen training, SOM-10

Benchmarking Define, Improve Green Belt training, Black Belt Training, Champion training, SOM-10

Brainstorming Define, Measure, Analyze, Improve Green Belt Training, Kaizen Training, SOM-10 Champion training

Control Charts (p, np, c, u, I, MR, Run, x-bar & R) Analyze, Control

Green Belt Training, Black Belt Training, SOM-12 Champion training

Control Plans Improve, Control Green Belt Training, Black Belt Training, Champion training

Cost of Poor Quality - Concepts of Waste Define, Measure, Analyze Green Belt Training, Black Belt Training, SOM-5 Champion training

Current State Value Stream Mapping Measure Analyze Green Belt Training, Black Belt Training, SOM-7 Champion training, Kaizen training

Cycle Time Data Analysis Analyze Green Belt Training, Black Belt Training, SOM-11 Champion training

Five "S" Define, Improve Green Belt Training, Black Belt Training, SOM-12 Champion training, Kaizen training

Interrelationship DiagramDefine,

Analyze, Improve

Black Belt training