Improve your Baldrige Package using Lean Six Sigma

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Improve your Baldrige Package using Lean Six Sigma

• Leon Spackman
• LSS MBB, PMP
• PMC Solutions
• A Business Process Management Company

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Overview

• What is Lean Six Sigma?
• How does LSS apply to the Baldrige criteria?
• LSS basic tools
• Summary

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How Did We Get Here?

• Quality focused on manufacturing and Product
  improvement
• Deming, Juran, Crosby
• QA/QC, Quality Circles, Zero Defects
• Emphasis changed to Process management
• TQM
• ISO 9000
• Malcolm Baldrige criteria

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How Did We Get Here?

• Concurrently, Process Improvement methodologies
  created
• CMM/CMMI
• Lean
• Six Sigma

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What is Lean?

• Process improvement methodology developed in
  manufacturing (Toyota Production System has led
  the way)
• Focuses on value to the customer by eliminating
  waste in the process
• Increases speed in our processes
• Effective in both service and manufacturing

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Lean Fundamentals

• All processes should be Pull, not Push
• PullDetermined by customer demandonly produce
  what is requiredincluded just-in-time
  inventories
• PushDetermined by processproduce what we think
  will be needed
• Defects are not Made and/or Passed
• Defects are prevented when possible, but never
  moved to the next step in the process

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Lean Fundamentals

• Eliminate Waste
• Look early and often for waste
• Anything that does not add value to the
  product/service
• Mistake Proof your Processes
• Creating ways to eliminate any chance for error
  or any error stand out
• Physical restrictions, visual cues, templates,
  workflow order

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Lean Fundamentals

• Level Balanced Production
• Design daily workload based on customer demand
• Minimize non-value-added steps and optimize
  resources
• Multi-skilled employees perform more than one
  task

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Take a Closer Look at Waste
OverproductionProducing too much producing too
soon batch processing
IntellectFailure to fullyutilize the time and
talents of people lack of training no avenue
for suggestions
TransportationAny nonessentialtransport or
handling
InventoryHigh supply stores finished product
stores in-work materials
MotionAny motion thatdoes not add value
chasing parts, signatures, tools, etc
WaitingWaiting on parts or documents, waiting
for other workers or a machine
DefectsAny rework errors
Extra ProcessingAdding inspections approvals
reviews
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Challenges to Identifying Waste

• Todays problems are the results of
  yesterdays solutions.
• --Peter Senge

• In many cases, we unknowingly engineered
• waste into the processwe are used to it
• being there
• Need to know how and where to look
• Must look at our work through a process lens

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Identifying Waste

• Waste looks like
• Clutter
• People waiting
• Overflowing In-Boxes both email and the one on
  the desk
• Waste looks normal
• Waste is all around--looks common to the
  workplace
• Need to recalibrate your eyes to see waste
• Waste feels chaotic
• Hurry up and wait
• Frustrating
• Fire drills

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Lean Project Steps

• Form and train team of experts
• Map process
• Gather data and identify waste
• Identify root cause and solution
• Implement solution
• Measure results

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Lean Summary

• Understand your process
• Focus on reducing waste
• Do only what adds value
• Do things right the first time
• Continuously Improve

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What is Six Sigma?

• A Philosophy
• Customer Critical To Quality (CTQ) criteria
• Fact-driven, measurement-based, statistically
  analyzed prioritization
• Controlling the input process variations--
  yields a predictable product
• Relentless pursuit to drastically reduce
  variation and manage whatever variation is left
  over
• Critical and analytical thinking to solve
  problems
• A Quality Standard and Level
• 6s Zvalue of 6 3.4 DPM (DPMO) 1.5 Cpk
  2.0 Cp 99.99966 FPY

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What is Six Sigma?

• A Structured Problem-Solving Tool/System/Approach
• Phased project Define, Measure, Analyze,
  Improve, Control (DMAIC)
• Common language definitions for verifying and
  solving problems
• A Program
• Dedicated, trained Black Belts, Green Belts,
  Champions, Master BBs
• Prioritized projects with teams - Process
  participants owners
• Program reviews, Steering Committee

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Six Sigma Methodology
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Define Your Process

• Ensure everyone understands what your process
  does
• Identify customers
• Identify who owns the process

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Measure

• Decide what you need to measure
• Errors
• Cycle time
• Input/supplier problems
• Identify where the data is located
• Identify how and when it will be collected
• Assign responsibility to gather data
• Link to customer requirements

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Process Capability/Baseline

• Establishes a baseline of current performance
• Helps you understand your process
• Helps to know what direction you need to go

Current 95 not meeting customer requirements
Future 95 meeting customer requirements
Customer Requirement
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Analyze

• Use the data gathered to identify root causes
  (the vital few)
• Solve process problems once and for all
• Dont chase after symptoms
• Tools
• Fishbone diagram
• Statistical tests (another discussion)

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Improve the Process

• Select improvement options based on root causes
• Use decision matrices to select best options
• Implement and test

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Control Your Process

• Mistake proof your process
• Can only be done one way
• Automatic notification when there are problems
• Statistical process control
• Continue to measure key indicators
• Watch for shift and drift tendency
• Adjust as necessary

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Continuous Improvement

• Process improvement not a linear process
• Never really ends
• Journey not a destination

Define
Control
Measure
Improve
Analyze
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Six Sigma Review

• Focuses on reducing variability
• Extensive data and study of processes to find the
  root cause
• Focused on prevention
• Based on D-M-A-I-C
• Extensive training

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Lean Six Sigma Combined

• Combination of thought and tools of both
  methodologies to improve process cycle time,
  reduce waste, minimize variation, and improve
  customer satisfaction.

Lean
Six Sigma

Lean Six Sigma Application
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LSS and Malcolm Baldrige

• Why do I care about how LSS relates to Malcolm
  Baldrige?
• Do I need it?
• How will it help?

LSS is a process improvement methodology that can
greatly enhance the effectiveness and efficiency
of your Malcolm Baldrige program.
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LSS and Malcolm Baldrige
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LSS and MB Cat 4, 5 and 7
LSS
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LSS and MB Cat 1, 2, and 3
LSS
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Basic LSS Tools

• SIPOC
• Process Mapping
• Value Stream Mapping
• Kaizen Events
• 5S
• Data Plan
• Pareto Chart

• Histogram
• Statistical Analysis
• Fishbone Diagram
• Solution Matrix
• Story Boards
• Control Plan/Charts

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Processes and LSS
Y f(x) Y is equal to the function of X or Y
is only as good as the input and process of X
X
X
X
X

• Inputs and processes (X) have a profound effect
  on the
• output (Y)
• Controlling the inputs, their interactions and
  the process
• will improve the output

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SIPOC Diagram
Inputs
Outputs
Supplier
Process
Customer

• Who provides
• Raw Materials
• Information
• Equipment

Equipment, materials, or information you use in
your process
What you produce in your process

• Internal
• External
• Stakeholders
• Requirements

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SIPOC DiagramsDos and Donts

• Dos
• Do focus on activities that
• directly add value to customers
• Do stay at a high level
• Do involve a mix of people

• Don'ts
• Dont dismiss inputs and
• outputs from the process at
• this point
• Dont just look upon your core
• processes as unchangeable
• Dont worry--you can come
• back to this later in your
• problem solving process

Taken from The Six Sigma Way Pande, Neuman,
Cavanagh - Page 172-173
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Process Mapping

• Before we can manage processes, we must identify,
  define, and centralize them
• Provides a clear, visual way to examine processes
  
• Helps identify redundancies, waste, and weaknesses

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Why Map Processes?
The way you think it is.
What the customer expects, and is willing to pay
for.
The way it really functions.
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Micro-Level Processes
Detailed steps that must be followed in order to
produce a product/result.
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Macro-Level Processes

• Mid level detail showing how an overall task
  or deliverable is accomplished.

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Business System--High Level Relationships Across
Functions
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Process Symbols
Reference Document
Boundary
Multiple Documents
Task
Data Base
Decision
Connector
Embedded Process
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Putting It All Together
Websites Regulations Policies
Start Process
Reference Document
Task
Data Base
Embedded Process
Decision
End Process
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Interactive Electronic Map
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Online Electronic Document
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Mapping Tips

• Keep it simple but include all necessary detail
• Start every task with an action verb
• Ensure every decision leads to yes and no
  outputs
• Use only the simplest standard flowcharting
  symbols
• Walk the lineverify the process

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Benefits of Process Mapping

• Compliance, registration
• Employee understanding
• Standardizationreduce variation
• New employee training/orientation
• Customer satisfaction
• Improved financial performance
• Operational excellence
• Foundation for continual improvement

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Value Stream Mapping (VSM)

• Expanded process map
• Includes flow from beginning to end usually
  including the supply chain
• Documents time and cost for each step
• Makes a judgment on value to the customer (value
  added vs. non-value added)
• Tracks value and non-value time

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Building a Value Stream Map
Housekeeping Processes
Transactional Support Processes
Process Data Information
NVA Non-value Added Time VA Value Added Time
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Kaizen Event

• Tiger TeamShort term commitment
• Quick wins
• Normally one week long
• Day 1 Train and map the process
• Day 2. Gather data and find root cause
• Day 3. Find solution
• Day 4. Implement and measure
• Day 5. ControlHave a party

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5Ss

• Sort Get rid of what you dont need
• Set in Order Organize create a place for
  everything
• Shine Clean everything
• Standardize Set standards across the
  organization
• Sustain Make sure the solution sticks

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Data Plan

• Identify what needs to be measured
• Key Performance Indicators (KPIs)
• Link to Strategic Plan
• Leading/lagging indicator
• What decisions will be made
• Identify how you will measure it (how often, who
  is responsible)
• Identify how it will be graphed

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DATA COLLECTION PLAN
UNIT DATE
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Pareto Chart

• A sorted Bar Chart, with the bars arranged in
  descending order from left to right
• Used to identify most common occurrences or tall
  poles
• Identify pain in your process
• Prioritize projects/issues
• Based on the 80/20 rule

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Pareto ChartExample
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Pareto Chart--Example
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Histogram

• Frequency plot of large amounts of data
• (at least 50 data points)
• Data must be continuous (measured on a
• continuum, i.e. time, height, weight etc.)
• Determine range and class intervals
• Look for
• Shape of distribution curve
• Mean
• Range
• Standard Deviation
• Customer Requirements

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Histogram
Customer Requirement
Mean 8.5
Range 15 Std Dev 3.2
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Statistical Analysis

• Descriptive Statistics
• Mean, mode, median
• Range, variance, standard deviation
• Inferential Statistics (Probability)
• Hypothesis testing
• T Tests
• Chi Square
• ANOVA
• Correlation/Regression analysis

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Fishbone Diagram
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Fishbone Diagram-Example
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Fishbone Example
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Solutions
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Selecting the Best Solution

• Identify and evaluate possible solutions
• Screen potential solutions as necessary,
  combine, add, delete, and/or modify them
• Evaluate against (weighted?) criteria
• Other important considerations
• Risk
• How likely will the event occur
• Effect if it does occur
• Barriers to solutions
• Legal restrictions
• Cultural

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(No Transcript)
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Story Board
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Control Plan

• Continue to measure key indicators
• Set parameters
• Watch for shift and drift
• Make corrections as needed

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Shift and Drift

• Processes have a tendency to move over time
• People, materials, equipment all change
• Shift can be as much as 1.5 standard deviations

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Shift and Drift
Delivery Days
UCL 15 Days
Delivery Example We want to complete all
deliveries in less than 15 days As a result of a
brilliant LSS project, we succeed!!
One Year Later Hey what happened??? The
process was working beautifully last time I
checked
0 3 6 9 12 15 18 21
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The project is progressing well and you wrap it
up. One year later you are surprised to find
that the population has shifted.
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Summary

• Lean Six SigmaProcess improvement methodology to
  reduce waste and variation
• Malcolm BaldrigeEmphasis on category six but
  relates to all
• Deploy LSS as key part of Malcolm Baldrige
• Use Lean Six Sigma methodology/tools to manage
  and continuously improve your processes

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Challenge

• Perfection is not attainable. But if we chase
  perfection, we can catch excellence.
• --Vince Lombardi

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Questions
Leon Spackman PMC Solutions lspackman_at_pmcsolutions
.com [phone] (Work) [phone]
(Cell) www.pmcsolutions.com www.inprocess.com
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Acronyms

• CMM/CMMI Capability Maturity Model / Integrated
• DFSS Design for Six Sigma
• DMAIC Define-Measure-Analyze-Improve-Control
• FMEA Failure Mode and Effects Analysis
• KPI Key Performance Indicator
• LSS Lean Six Sigma
• MB Malcolm Baldrige
• MBB Master Black Belt (highest level of training
  in Six Sigma)
• NVA Non Value Added
• QFD Quality Functional Deployment
• SIPOC Supplier-Input-Process-Output-Customer
• TQM Total Quality Management
• VA Value added
• VSM Value Stream Map
• 5S Sort-Set in Order- Shine-Standardize-Sustain