using lean six sigma to reduce costs and improve process performance ronald d. snee asq philadelphia...
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Using Lean Six Sigma to Reduce Costs and Improve Process Performance
Ronald D. Snee
ASQ Philadelphia Section Six Sigma Panel Discussion
January 21, 2009
© 2008 All rights reserved. No part of this document may be redistributed or reproduced in any form or by any means, without the prior written permission from Tunnell Consulting, Inc.
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Business Strategy and Methodology that increases
process performance resulting in:
Enhanced customer satisfaction and
Improved bottom line results ($$)
Leadership Development Tool:
"Perhaps the biggest but most unheralded benefit of Six
Sigma is its capacity to develop a cadre of great leaders”
– Jack Welch
What is Six Sigma?
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DeploymentImprovementBreakthroughSystematic,
Focused ApproachRight People:
Selected &TrainedResults:
Process & Financial ($$)
CommunicationRecognition and
RewardSix Sigma Initiative
Reviews
ProjectsRight Projects:
Linked to Business Goals
Project Portfolio Management
Projects: Execution Reviews Closure
Sustain the Gains: New Projects
Project Tracking and Reporting
Methods and ToolsProcess ThinkingProcess VariationFacts, Figures, DataDefine, Measure, Analyze,
Improve, Control 8 Key Tools:
Sequenced and LinkedStatistical ToolsStatistical SoftwareCritical Few Variables
Key Aspects of Improvement
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Management Team
ProjectChampion
ImprovementMaster(MBB)
Team Leader(BB/GB)
And Team
Functional GroupsHR, Finance, ITEng, QA, etc.
Improvement Project Leaders
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THE PROCESSPROCESSOUTPUTS
CONTROLLEDVARIABLES
CUSTOMER
PROCESSINPUTS
UNCONTROLLEDNOISE
VARIABLES
Schematic of a Process and Its Variables
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Blend Compress Coat Package
Process Variables
Environmental Variables
API
Excipients
Ambient Temperature and HumidityBlending and Compression RoomsRaw Material LotOperatorsEquipment
Blending Time and TemperatureCompression Speed and ForceCoating Air Temperature and MoistureWater Addition
DissolutionContent UniformityYieldWaste
Tableting Process and Its Variables
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Process Inputs
Controlled Variables
Uncontrolled Variables
Critical Few Variables
Process Control and Optimization Are Enhanced
MeasureMeasure
AnalyzeAnalyze
ImproveImprove
ControlControl
Finding the Critical Few Variables
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Blend Compress Coat Package
Process Variables (Xs)
Environmental Variables (Xs)
API
Excipients
Ambient Temperature and HumidityBlending and Compression RoomsRaw Material LotOperatorsEquipment
Blending Time and TemperatureCompression Speed and ForceCoating Air Temperature and MoistureWater Addition
DissolutionContent UniformityYieldWaste
Process Inputs (Xs) Process Outputs (Ys)
Y = f (X)Y = f (X)Y = f (X)Y = f (X)
Tableting Process and Its Variables
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Sense Sense of of
UrgencyUrgency
Sense Sense of of
UrgencyUrgency
DefineDefine
ImproveImprove
ControlControl
Results ($$)Results ($$)
MeasureMeasure
AnalyzeAnalyze
DataData
LeadershipTeamworkStakeholder BuildingProject Management
Six SigmaSix SigmaToolsTools
DMAIC Process Improvement Framework
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Tool Define Measure Analyze Improve Control
Project Charter
Maps
Cause and Effect Matrix
Capability Analysis
Gage R&R
Failure Modes & Effects Analysis
Multi-Vari Studies
Design of Experiments
Control Plans and SPC
Key Improvement Tools
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Lean Manufacturing
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Lean is a documentation of the key attributes
of the Toyota Production System
Set of principles for efficient operations
Set of tools
Focus is on:
Process improvement by
reducing waste and cycle time
Improving process flow
Lean Manufacturing
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IWEIGHING
468Kg
BLENDING COMPRESSION COATINGI I I
3 days
MBR REVIEW
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4 hours65 hours
11.5 hrs4 hrs 40 mins44 hours
13 hours 6 hours 15 hours10 hours
2-3 day lead time 18 month
rolling forecast
Average # of Lots per month= 200
ManufacturingDaily Schedules
4-5 days
Daily ShipSchedule
BPX300mg
Building 5 PHILI
Yield = 99%
Setup = 150 mins
VA = 9 hrs
1 Shift
2 operators
Yield = 98%
Setup = 290 mins
VA = 8 hrs 10 mins
1 Shift
2 operators
Yield = 99%
Setup = 195 mins
VA = 705 mins
2 Shifts
2 operators
464.7Kg 454.4Kg457.74 Kg
Building 2 PlanningProvide 3 week projections to Mfg
WAREHOUSE
Time spent in Bldg 2 warehouse = 4hrs 40 mins
Yield = 100%
Setup = 60 mins
Wghing = 180 min
1 Shift
2 operators
Number of reviews = 5
Average Days = 5-1168 hours
I I I468Kg
PlanningSetup Batch
RecordReview
Cycle TimeTotal = 289 hrsVA = 29 hours
Value Stream Map Can Help Identify Key Areas to Target for Improvement
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Specify value by specific product
Identify the value stream for each product
Make value flow without interruptions
Let the customer pull value from the product
Pursue perfection
Lean Principles
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Overproduction: More than is needed and higher quality than is needed
Waiting (hang time) for machines, operators, raw materials, etc.
Transportation of materials: Wasted time due to unneeded product and material
movement Process inefficiencies and waste:
Inspection, NVA Work, duplication of effort Stock on hand (Inventory):
Work in progress and finished product used to cover for process problems
Motion: Unnecessary movement, multiple handoffs, continually
searching for materials, tools, supplies, etc. Defects:
Rework, missing information, not meeting specs
Types of Waste
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Process MappingValue Stream
Spaghetti
Kaizen Event
5S (Sort, Store, Shine, Standardize, Sustain)
Mistake Proofing
Standard Work
Work Cell Design
Line Balancing
Videotaping
Rapid Changeover:Single Minute
Exchange of Dies (SMED)
Kanban (just in time)
Key Lean Tools
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Shift Process AverageReduce Process
VariationRobust Products and
Processes
Six Sigma Objectives Lean Objectives
Improve Process Flow
Reduce Process Complexity
Reduce:WasteNon-Value
Added WorkCycle Time
Lean Six Sigma Improves Quality, Cost, and Delivery
Improvement Objectives
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There are Opportunities Both Within and Between Process Steps
Step A
Step B
Step C
Customer
Lean Six Sigma
A Three Step Process
Value-Adding Transformations Occur WITHINProcess Steps
Material and Information Flow BETWEENProcess Steps
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Some Improvement Projects
Process Project Impact Value
BioPharm
BatchRecordReview
Reduce CycleTime 35-55%
Inventory reduced $5MM Costs reduced $200k/yr
BioPharm Improve Yield Yield Improved25% Market Demand Met
SolidDose Manuf
Improve Quality
Process Validated
Product Launched After Many Year Delay
Tablet Manuf
ReduceDefectiveBatch Rate
Batch DefectRate Reduced Savings $750k/yr
Tablet Manuf
ImproveCoaterReliability
ProcessInterruptionsReduced 67% Savings $1.7MM/yr
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Snee, R. D. (2001) “Focus on Improvement, Not Training”, Quality Management Forum, Spring 2001, 7,8,16.
Snee, R. D. and R. W. Hoerl (2007) “Integrating Lean and Six Sigma – A Holistic Approach”, Six Sigma Forum Magazine, May 2007, 15-21.
Snee, R. D. and R. W. Hoerl (2003) Leading Six Sigma – A Step-by-Step Guide Based on Experience with GE and Other Six Sigma Companies, Financial Times Prentice Hall, New York, NY. Chapters 3-4.
Snee, R. D. and R. W. Hoerl (2005) Six Sigma Beyond the Factory Floor – Deployment Strategies for Financial Services, Health Care, and the Rest of the Real Economy, Financial Times Prentice Hall, New York, NY. Chapters 3-4.
References