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Application of Lean Six Sigma Practical experience Steven Farr, 12 th November 2015

Application of Lean Six Sigma Practical experience

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Page 1: Application of Lean Six Sigma Practical experience

Application of Lean Six Sigma

Practical experience

Steven Farr, 12th November 2015

Page 2: Application of Lean Six Sigma Practical experience

2 Member Firms and DTTL: Insert appropriate copyright (Go Header & Footer to edit this text)

Page 3: Application of Lean Six Sigma Practical experience

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©2015 Deloitte & Touche (M.E.) All rights reserved 4

Inspiration

Career

Industry

Companies

Education Where I

have lived

Interests

My journey Steven Farr

Family

Page 5: Application of Lean Six Sigma Practical experience

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Some practical insights Nothing beats going to the ‘Gemba’ and observing, taking photos and

talking to the operational team at the location – ‘Seeing is believing’

If your process doesn’t work don’t just

automate it: Rubbish in = Rubbish out

• Ask why isn’t it working?

• Solve the problem(s) at the root

cause(s) with available tools

• Then ‘Automate’ for efficiency gains

Don’t be afraid to stop a project at any

phase if the business case no longer exists

Don’t skip the basics

Plot, Plot, Plot…

“If the words don’t add up, its usually because the

truth wasn’t included in the equation”

In the words of Clay

Shirky, “there is no such

thing as information

overload, there’s only

filter failure.”

Have an effective pipeline

management process which

assesses priorities throughout

a project’s lifecycle

©2015 Deloitte & Touche (M.E.) All rights reserved 6

Page 7: Application of Lean Six Sigma Practical experience

“The reasonable man adapts himself to

the world: the unreasonable one

persists in trying to adapt the world to

himself. Therefore all progress depends

on the unreasonable man.”

David and Goliath: Underdogs, Misfits and the Art

of Battling Giants | Malcolm Gladwell

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• Each line produces trash Bags @

750ft/minute (150 to 200 bags/min)

• There are 19 lines in this one facility and

there are four facilities in America

• They run planned maintenance (PM)

every 2 weeks on each line. On average

there is an unplanned maintenance

activity 1½ days after the PM

• They buy in approx. US$1.5m of product

from competitors to meet demand

• Similar problems are seen in: Metal

Fabrication, Paper Mills and other high

speed manufacturing facilities

Case study Trash bag winder system

High speed commodity production with low profit margins

©2015 Deloitte & Touche (M.E.) All rights reserved 9

Page 10: Application of Lean Six Sigma Practical experience

Plant machine overview Breakdown of machine Areas & Subassemblies. created during

data cleanse

Winder, Drum & Hem Sealer account

for 57.7% of all lost hours.

If we include the Sally, Jones and

Draw tape then these 6 areas account

for over 80% of lost production time.

©2015 Deloitte & Touche (M.E.) All rights reserved 10

49hrs

24hrs

Page 11: Application of Lean Six Sigma Practical experience

Jacksonville Winder Rotor data analysis Analysing available data from ERP Work Order planning system

Analysis completed of a component

called the ‘Rotor’ on the Winder

system. This component accounts

for 138 hours worth of downtime

over the assessment period.

Non-normal distribution with a right

skew. Therefore shape

characteristics:

• Q1 (25%) at 12 days

• Median (50%) of 38.7 days

• Q3 (75%) at 60 days ©2015 Deloitte & Touche (M.E.) All rights reserved 11

Page 12: Application of Lean Six Sigma Practical experience

Shape of Hazard Plot verses Bathtub curve Using the Weibull distribution we can develop an idea of the shape,

Survival and Hazard functions using statistical inference

Here the shape of the hazard

function shows clearly that we

are in the range of Decreasing

Failure Rate due to Early “Infant

Mortality” failures.

©2015 Deloitte & Touche (M.E.) All rights reserved 12

Page 13: Application of Lean Six Sigma Practical experience

Failure Mode and Effect Analysis (FMEA) Whilst waiting for components we conducted a Failure Mode and Effect

Analysis (FMEA) to establish areas of opportunities and potential

frequencies of failures

©2015 Deloitte & Touche (M.E.) All rights reserved 13

“Systems do not fail, components do!”

$5.00 Fishing Tackle Box

Page 14: Application of Lean Six Sigma Practical experience

Analysis of the Rotor unit bearings Cut a bearing open and discussed with supplier. Focus is on building

these units and checking dimensions

Top Left: Rotor bearing. Was

completely seized. Been installed and

run for 3 weeks

Top Right: Running groves show no

sign of wear

Bottom Right: Outer seal shows high

heat loads and has distorted.

©2015 Deloitte & Touche (M.E.) All rights reserved 14

Page 15: Application of Lean Six Sigma Practical experience

End Plate Data Working ‘with’ CMD to understand design tolerances for end plates

Bore Diameter

Bore # 1 2 3 4 5 6 7 8

1 1.3770 1.3780 1.3767 1.3766 1.3765 1.3765 1.3766 1.3765

2 1.3772 1.3781 1.3766 1.3765 1.3764 1.3767 1.3767 1.3767

3 1.3772 1.3781 1.3767 1.3767 1.3765 1.3766 1.3766 1.3766

4 1.3770 1.3776 1.3767 1.3766 1.3765 1.3767 1.3767 1.3767

5 1.3770 1.3780 1.3765 1.3766 1.3765 1.3766 1.3767 1.3768

6 1.3771 1.3781 1.3764 1.3766 1.3764 1.3766 1.3767 1.3766 Thermal images of Rotor.

Top reading was at 142°F

(61°C)

©2015 Deloitte & Touche (M.E.) All rights reserved 15

Page 16: Application of Lean Six Sigma Practical experience

Rotor unit fixture assembly completed Found End plates and spacers too short – had discussions with OEM

supplier and ended up making our own to the correct tolerances

Spacers that are too short (0.015”).

Creates binding of rotor unit adding

to stress issues with bearings.

Spacer length: 0.015” too short on

some units

Bore size too small on some end plates:

Bearing mfr says preferred press fit 0.0003”.

Have seen 0.0005” to 0.0018” press fit.

Fixture assembly: re-enforced to

eliminate flexing during press fit of

bearings

©2015 Deloitte & Touche (M.E.) All rights reserved 16

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©2015 Deloitte & Touche (M.E.) All rights reserved 18

The Mission was split into several key areas:

• Lead Control Agenda

• Deliver Continuous Efficiency

• Manage Processes to Drive Business

Outcome

• Demonstrate Great Customer Service

Values: Proud of what we do; The freedom

to succeed; Be the best; Passionate about

consumers; and We value each other.

An opportunity was identified to deliver value

to the business in DBS Budapest through the

implementation of Lean Workplace to 700

employees

Case study

Business Service Centre

Aim to be ‘The Solutions Division’

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Background: Areas of Improvement Large outsourcing activity has meant lots of change within their location

• Focus on steadying the business and making as

many small changes as possible to improve the

overall processes

• Work Life Balance (WLB) levels are excessive for

almost all teams

• Various high periods of demand throughout the

business puts strain on systems and the employees

• Reports locally produced that are known within

business not to be read or sometimes believed

• Quality of information received, and sometimes

delivered, could be improved upon

• Increased awareness of Customer needs and

expectations - Talk to the Customer more often

• Need rapid change across all processes to

achieve Mission Goals

©2015 Deloitte & Touche (M.E.) All rights reserved 19

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Lean Workplace: Through “Challenge the Norm”

20

©2015 Deloitte & Touche (M.E.) All rights reserved 20

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Principles of a decentralised deployment

©2015 Deloitte & Touche (M.E.) All rights reserved 21

Modular Framework

• Modular framework for local selection

• Supportive tools and a common language

• Simple outcomes and needs

Cultural Resonance

• Language and needs of the local teams

• Pool of success stories

• Share right one at right time

Type of Change

• Individual nature of solutions is very local

• Top down performance drivers

• Core framework uses selective modules at local level

Centralised Strategy

Modular Approach

Multiple Levels

• Understand the needs of each level within the business

• Provide for support all levels

Centralised & Decentralised

• Centralised for programme support

• Decentralised for ownership of delivery

Leadership Behaviours

• Role model

• Seeking and promoting success

• Accountable for change success and sustainability

Leadership Focus

Framing

• National and local level

• Local experimentation and empowerment

Decentralised Change

• Ability to take modules and deliver locally

• Pick and choose

• Local ownership and solutions

Empowerment & Accountability

• Locally own deployment, funding and prioritisation

• Identifies personal risk business is willing to take

Local Accountability

People Segments

• Let early adopters / innovators come forward

• Others observe and participate later

Positive Deviance

• Encourage “Mavericks”

• Unofficial distribution and implementation

Interpersonal Networks

• Encourage peers to discuss the programme

• Formal and/or informal communications

• Yammer, My News, etc

Sharing & Collaboration

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Page 23: Application of Lean Six Sigma Practical experience

Future of Analytics - Process X-ray Provides detailed analytical visibility into processes and enables objective

improvements based on the truth rather than perceptions and assumptions

Traditional Process Diagnostic vs. X-ray Enabled Diagnostic

Opinion of pain points

Individual

experiences

Perception of

process execution

Actual Process Perceived Process

Qu

alita

tive

inp

uts

Fa

ct-b

as

ed

da

ta

Visualize all variants and their

frequency throughout the actual process Drill down into any variant to identify

issues and gain insight into root causes

View how work flows between

individual users and teams

Objective view of

process execution

Fact-based insights

to pinpoint issues

End-to-end process

execution visibility

Illustrative X-ray Analytics

VS

©2015 Deloitte & Touche (M.E.) All rights reserved 23

Page 24: Application of Lean Six Sigma Practical experience

X-ray was used to identify $44M in cost savings opportunity in

PTP across 3 countries

• Client aimed to understand the P2P

end-to-end process execution across

three main markets

• Client aimed to identify process

improvement opportunities and to

further harmonize process execution

• Hypotheses are tested to get insight

into process variations

• Workshops are held with regional and

local process owners to acknowledge

findings

• Deep dives are executed for specific

hypotheses to find root causes

• 3 countries were analyzed across

process efficiency, working capital

and compliance, identifying cost

reduction opportunity of $44M

• In a short timeframe, fact-based

opportunities were identified, aligned

on, and implemented to harmonize

processes and drive value

Ba

ck

gro

un

d

Ap

pro

ac

h

X-r

ay V

alu

e A

dd

8 w

ee

ks

• Test variation in P2P

execution in main markets

• Identify improvement

potential in efficiency,

controls and working capital

Overview of process improvement initiatives and

approach for global roll-out

• Structured approach in

which 16 hypotheses are

tested and discussed. On

selected hypotheses deep

dives are executed

• Improvements were

identified in the field of

rework, work distribution,

automation and data

integrity issues

• At the request of the client,

Deloitte supported to build

in-house X-ray capability

Test variation in P2P execution in 3 main markets

©2015 Deloitte & Touche (M.E.) All rights reserved 24

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Page 26: Application of Lean Six Sigma Practical experience

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