rapid transformation - making change happen fast

Download Rapid Transformation - Making Change Happen Fast

Post on 11-Nov-2014




1 download

Embed Size (px)




  • 1. May 2010 Rapid Transformation Making Change Happen Fast Larry W Dyer Director, Process Improvement Master Black Belt Coventry Health Care

2. Agenda

  • Lean and Six Sigma Overview
  • What is Kaizen?
  • How to execute a Kaizen
  • Kaizen examples
  • Where to start with Kaizen
  • Top 10 reasons projects fail

Rapid Transformation WC Process & Strategy 3. Assumptions

  • You have some exposure to Six Sigma and Lean
  • You understand what the project charter is
  • You understand that projects with a high return on investment and moderate to low effort are executed first

Rapid Transformation WC Process & Strategy 4. Every Firm Is Driven to Improve Quality, and Reduce Cost and Lead Time

  • Customer loyalty and retention
  • Shorter customer lead time demands
  • Downward price pressure: lower costs
  • Lower invested capital
  • Capacity expansion

Rapid Transformation WC Process & Strategy 5. Why Do These Goals RequireBoth Lean and Six Sigma?

  • In a value stream, thework often spends up to 95% of its time waiting
  • Poor quality increases the lead time to customer
    • 10% defect rate can increase lead time by 40% and reduces available capacity
  • Capacity problems can be masked by slow cycle times
  • Lean tools accelerate lead time reduction
  • Six sigma brings a process under control

Rapid Transformation WC Process & Strategy 6. 95% of Time Waiting, For What? Customer Value Added Time Business Value Added Time Non-Value Added Time Wait Time

  • Findings indicate:
    • Long process time
    • Process Cycle Efficiency Poor - 0.069%(World Class Standard = 50%)
    • Wait times are extremely long

Rapid Transformation WC Process & Strategy 7. What is Lean Six Sigma?

  • Lean Six Sigmais a combination of two process improvement methodologies Lean and Six Sigma
  • Leanis all about speed.
    • Pioneered by Ford and perfected by Toyota
    • Focuses on eliminating waste and finding better ways to do things
    • Helps eliminate steps that add no value
  • Six Sigmais all about quality and repeatability.
    • Started by Motorola in the 80s; improved by GE
    • Focuses on reducing defects and variation and incorporates powerful statistical tools to control a process
    • Six Sigma Quality literally means 3.4 defects per 1 million parts
    • It is the origin of the DMAIC process

Rapid Transformation WC Process & Strategy 8. Greatest Challenges to Successful Deployment From ASQ, Quality Progress, August 2009 Why? Why? Rapid Transformation WC Process & Strategy 77 of 5,000 hospitals Confidence level 95% Confidence interval +-11% 9. Why Lean Six Sigma?

  • Why use them together?
    • Because Lean cannot bring a process under statistical control, and Six Sigma alone cannot dramatically improve process speed.
  • Six Sigma is the Unifying Framework
    • It provides the improvement infrastructure (role definitions, deployment model, etc.) and the overriding methodology (DMAIC).
  • Lean provides additional improvement tools to turbo charge improvement efforts.

Rapid Transformation WC Process & Strategy 10. When to Use LSS for Process Improvement

  • When to Use:
    • You have a challenging goal to reach or issue to solve
      • Driven by the business strategy
      • Issues that are valuable for the business to resolve
      • Problems that have stood the test of time
      • Solution is not known
    • You are willing to commit people to identify and resolve the issue
    • You want a more robust solution than traditional methods can provide
    • You want group ownership of a course of action
  • When NOT to Use:
    • You dont have a specific challenge or clear issue to solve
    • You already have a solution and course of action
    • You dont have a process to improve

Rapid Transformation WC Process & Strategy 11. Rapid Transformation

  • Relies heavily on:
    • Lean techniques
    • Statistical Process Control
  • Uses Kaizen Format
  • Focuses on a subset of Six Sigma Tools
    • Stakeholder Analysis
    • FMEA
    • Value Stream Mapping
    • Non-Value Added Analysis
    • Root Cause Analysis
    • Quick Improvement Techniques

Rapid Transformation WC Process & Strategy Lean Is Cool! 12. What is Kaizen?

  • Kai = to take apart
  • Zen = to make good
  • Kai + zen = taking something apart to make it better
  • Team activity
  • Rapid improvement within a short time
  • Well planned and highly structured
  • Essentially an accelerated DMAIC project

Rapid Transformation WC Process & Strategy 13. When to Kaizen

  • When obvious waste sources have been identified
  • When the scope and boundaries ofa problem are clearly defined and understood
  • When implementation risk is minimal
  • When results are needed immediately - i.e., capacity constraints, setup reduction, acute quality problems, safety/ergonomic issues
  • In the early stages of a project to gain momentum and build credibility

Rapid Transformation WC Process & Strategy 14. When to Use Kaizen Project Idea Incremental Improvement? Re-engineer Project Small Project? Large Project Process Speed? Process Quality Project Kaizen Perform Value Stream Mapping Break into Small Projects Yes No Yes Yes No No Use Inter-Ocular analysis Rapid Transformation WC Process & Strategy 15. Kaizen Goal

  • Focus on each step in the process
  • Reduce the Non-Value Added Steps
  • Minimize the Business Value Added Steps
  • Streamline the Customer Value Added Steps
  • Eliminate All Waste

Product Lead Time Customer Value Added Non-Value Added Start Finish Business Value Added Rapid Transformation WC Process & Strategy 16. Kaizen Benefits

  • Provides momentum for the project
  • Drives value ($) early, thus improving ROI
  • Helps the Company
    • Eliminate hidden costs of waste
    • Ensure work provides value
    • Allows major improvements quickly
  • Helps You
    • Eliminate waste and interruptions
    • Influence the work you do every day
    • Be part of the solution
  • Reduces stress on project team to Get Something Done!

Rapid Transformation WC Process & Strategy 17. Kaizen VS Traditional DMAIC Project

  • Team is 5 Days Full Time vs. 4 Mo Part Time
    • Actual team hours may be close
  • Resources Dedicated
    • 100% Dedicated for 5 days
  • Scope Completed/Problem Identified Going In
    • Team does not have time for scope assessment
  • Basic Data Gathered
  • May use Tribal Knowledge vs. Detail Analysis
    • Solution may be known but historically not listened to
  • 30-Day Follow Up Action Items
    • Items that cannot be finished that week

Rapid Transformation WC Process & Strategy 18. Kaizen Structure Team Training Rapid Transformation WC Process & Strategy Issue List Area Discovery Cause & Effect GoalBrainstormed Ideas Final Presentation Effort Benefit .5 1.5 1.0 2.0 2.5 .5 3.0 3.5 4.0 4.5 5.0 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 1 2 3 4 5 8 9 10 7 6 Action Items What Who When Status Implementation 19. Kaizen Preparation

  • Begin preparation 2 weeks before start of the Kaizen event
    • Collect necessary data
    • Notify participants of their involvement
    • Create introductory training for participants
    • Share the project charter
    • Collect preliminary process maps


View more >