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All Gain, no Pain! Using Quality to assist
Supply Chain goals
Presented by: David Muncaster, CSSBB
Senior Program Manager, Sales Operations
Staples Business Advantage Canada
Who’s this guy standing up in front of you?
• Senior Program Manager, Sales Operations at Staples Business Advantage Canada, covering:
• ISO/Regulatory/Sales Applications/CRM/Customer Survey and Continuous Improvement
• Worked in manufacturing field for 10+ years
• Working in distribution field for 12.5 years
• Past chair of ASQ Vancouver Section
• Certified Six Sigma Black Belt
• Pisces and enjoy long walks in Stanley Park
• What’s the deal with “Staples Business Advantage” – isn't that the same as Staples, the retail store?
• Part of the Staples North America family
• The largest office products company in Canada
• We are the business to business unit of Staples – not affiliated with the stores
• Most customers order off of our E-way platform (electronic order website)
What do you do again?
Using Quality in 4 simple steps!
1. Speak the language of business:
• “Show me the money!”
2. Find out where the waste is:
• Using LEAN
3. Show the benefit and improvement:
• Using Six Sigma
4. Bask in the glory and praise!
Invest back in business - ROI
Product cost is just the tip of the iceberg!
Origin of Lean • Lean History:
–Pioneered by Ford in the early 1900’s
–Perfected by Toyota post WWII
• Known by many names:
–Toyota Production System
–Just-In-Time
–Continuous Flow
• Outwardly focused on being flexible to meet
customer demand, inwardly focused on reducing or
eliminating the waste and the cost in all processes
• Employee engagement – “go to the floor”
• Six Sigma 1.0 – Improving Process Performance (Motorola)
• Six Sigma defined as a method to eliminate variation to customer requirements
• Voice of Customer defines quality
• Supported by a suite of quality and
statistical analysis tools
• Six Sigma 2.0 – Management System (GE/Allied Signal)
• Six Sigma defined as a management system to execute business strategy
• CEO and P&L owners trained and actively engaged in the process
• Defined organization and set of roles (Black Belts, Champions, Sponsors, Green Belts, etc.) creates accountability
Origin of Six Sigma
Look for the “waste” in the area (TIMWOOD)!
Waste comes in many forms! Here are the most common:
• Transportation (wasteful movement of product or service)
• Inventory (product or service waiting for customers)
• Movement (wasteful movement of employees)
• Waiting (employees waiting)
•Over Production (more than customer demands)
•Over Processing (more than customer requirements)
• Defects (quality issues)
Transportation (wasteful movement of product or service)
Inventory (product or service waiting for customers)
Movement (wasteful movement of employees)
Waiting (employees waiting)
Over Production (more than customer demands)
Over Processing (more than customer requirements)
Defects (quality issues)
A quality measure and improvement program developed by Motorola that focuses on the control of a process to the point of ± six sigma (standard deviations) from a centerline, or 3.4 defects per million items. It includes:
• identifying factors critical to quality as determined by the customer
• reducing process variation and improving capabilities
Six Sigma definition
Understanding 6 Sigma
X
On time Delivery
Customer specs
s
2
3
4
5
6
308,537
66,807
6,210
233
3.4
69.2%
93.32%
99.379%
99.977%
99.9997%
Yield
Defects per Million Opportunities
DPMO
Sigma Quality Level Conversion Table
3 sigma = 93.32% yield
6 sigma = 99.9997% yield
66807 x $50.00 =
$3.3 Million
versus
3.4 x $50.00 =
$170
Why aim for six sigma? 3 sigma versus 6 sigma
3 Sigma 6 Sigma
• 20, 000 lost pieces of mail per hour • 7 lost pieces of mail per hour
• 5,000 surgery mistakes per week • 1.7 surgery mistakes per week
• 2 long or short airplane landings at a major airport per day
• 1 long or short airplane landing at a major airport every 5 years
• 200,000 wrong drug prescriptions per year
• 68 wrong drug prescriptions per year
• No electricity for almost seven hours each month
• One hour without electricity every 34 years
• Unsafe drinking water for almost 15 minutes each day
• One unsafe minute every seven months
Define the opportunity from both business and customer perspectives.
Understand the process and it’s performance – Understand the “Y”
Search for the key factors that have the biggest impact on process performance and determine the root causes – Find the Critical “X’s”
Develop, pilot, and implement solutions for the Critical “X’s”
Develop standardized work and visual tools for project transition – Control the “X’s”
DMAIC Methodology
Analyze
Control
Measure
Define
Improve
Gate Review
Gate Review
Gate Review
Gate Review
Gate Review
LSS example
Aug
201
5
May
201
5
Feb
2015
Nov
201
4
Aug
201
4
May
201
4
Feb
2014
Nov
201
3
Aug
201
3
May
201
3
Feb
2013
94.00%
92.00%
90.00%
88.00%
86.00%
84.00%
82.00%
Month
% 5
- E
xtr
em
ely
Sa
tisfi
ed
_X=89.80%
UCL=92.02%
LCL=87.58%
FY2013 FY2014 FY2015
Control Chart of Problem Free Order by Fiscal Year
Putting it all together!
• Combine LEAN and Six Sigma for accelerated improvement
• Involve those doing the work in the improvement efforts
• Investigate waste in ALL areas of the business
• Have a structured program for solving problems
• Use data to prove your point for improvement
• Use data to show the improvement made
• Sustain those gains!
• Talk the language of business - $$$$
