Lean Six Sigma Green Belt Training … › wp-content › uploads › 2017 › 10 › ...Six thinking hats technique “Discoveries” during analysis Benchmark ideas Ideas from other

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Lean Six SigmaGreen Belt TrainingModule 4 – „Improve“

April 2017Roman Bauer

www.pwc.com

2Lean Six Sigma • Green BeltPwC

Today‘s focus:

DefineD

Measure

Analyze

Improve

Control

M

A

I

C

Define the improvement opportunities

Identify the Key Performance Indicators (KPIs)

Identify specific problems

Identify potential solutions

Determine the control plan

Develop the project plan

Develop a data collection plan

Identify and validate the root causes

Select right improvement solution

Detect the abnormal variations

Develop the project team

Validate the measurement system

Identify y = f (x)

Test and validate optimal solutions

Evaluate results of the changes

Define the processes (high level)

Define the baseline process performance

Develop a change management approach

Document the process changes

Identify critical customers requirements (CCR’s).

Deploy and execute solutions

Close project, communicate the know-how

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3Lean Six Sigma • Green BeltPwCPwC

What will you learn in this module?How to...

• Develop solutions by focusing on the identified causes

• Determine the evaluation criteria for the process improvement

• Use the various criteria for the selection of the solutions

• Execute the chosen solutions in the pilot testing and tailor when

necessary

• Deploy the solution and make improvements


August 2013Lean Six Sigma • Black Belt Training Week 2PwC

1. Identify potential solutions

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Sources of solutions

Generateimprovement

ideas

Best practices

Root causes

Project goals

Six thinkinghats technique

“Discoveries”during analysis

Benchmarkideas

Ideas from otherprojects

Brainstorming

Mind mapping

Performancetargets

Improve Identify potentialsolutions

Select rightimprovementsolution


Develop a changemanagement approach


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Rules for brainstorming

DO‘s

• capture everything

• encourage participants

• ask clarifying questions

DON‘Ts

• evaluate anything

• force participants or sequence

• ask judging questions

Ø Focus on quantity






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Brainstorming exercise






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Best solution selection

Potential solutions Screen out

Acceptable solutions Shortlist

Likely solutions

Nominal Group Criterial evaluation

Best solution

- Low pay off- „Must“ criteria

- Voting- N/2






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Is it worthwhile to implement a solution?– Pay off or PICK matrix

Low hanging fruits

Breakthrough

Deny

Maybe

Big benefits Small benefits

Easy Implementation

Complex Implementation

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4

7

5

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2

1

Identify potentialsolutions





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How to eliminate low payoff solutions






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“Musts” Criteria - Examples

If a solution does not meet “must” criteria, it should be eliminated from further consideration.

Examples:• Laws, Standards• Company policy• Customer “must be” requirements• Business “must be” requirements (e.g. resource constraints like money, time, people)






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How to shortlist likely solutions

• Voting– Each person chooses best three ideas– Record number of times each idea is chosen to identify most popular ideas

• N/2- This technique need only be applied if the previous step

generated a large number of solution options.- N/2 is accomplished through a series of votes, each cutting

the list in half.






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Evaluate the best solution

• Nominal group technique− quick method to prioritize− based on opinions, lacks of

objective criteria− each team member assigns

a rank to each solution (highest number to the most important solution and vice versa)

• Multi-criterial evaluation− requiring more time for

discussion− based on previously

identified criteria− opportunity to weight

criteria− objective comparisons of

solutions






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Criteria-based comparison

1. Record a final list of solutions

2. Create a list of criteria3. Weight the list of

criteria4. Compare the list of

solutions to the weighted criteria

5. Tally and discuss total scores for each solution

Example






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Cost/Benefit Analysis (1)

• Verification whether benefits outweigh the costs, and by how much• Basis for comparing projects

Procedure:1. Brainstorm costs and benefits associated with the project2. Assign a monetary value to the costs3. Assign a monetary value to the benefits4. Compare cost and benefits






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Cost/Benefit Analysis (2)

Quantitative benefits (Tangibles)v Cost reduction (hard savings), cost

avoidance (soft savings)v Quality improvementv Performance improvement

(productivity, lead time, servicelevel)

Qualitative benefits (Intangibles)v Customer satifactionv Employee satisfactionv Brand enhancement

Cost§ direct, indirect§ one time, ongoing

Analaysis preffered measuresü Payback-------------ü Net present value (NPV)ü Economic value added (EVA)ü Cash flow ROI






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Cost/Benefit Analysis

EXCERCISEBrainstorm costs and benefits for the case

(5 min)






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ExcerciseMake the cost&benefit analysis, calculate the payback

The lighting in warehouse is turned on 24 hours, 6 days a week, 50 weeks a year.The actual lighting of 46 sodium discharge lamps with a total power of 11500W is inadequate and provides a level of illumination in aisles between racks of only 5-100 lx, which does not meet the standard.

The selected contractor has offered a lighting of 100 LED lamps with a total output of 4050W that will provide the illumination of 100 lx.The electricity price is 2.60 CZK / kWhThe value of the contract for delivery and installation of lighting is 413,000 CZK.






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Key MessageBest Solution Selection

o The quadrant PICK matrix is a widely used simple decision-making tool.

o Often there are several collateral factors that make our decision-making more difficult, the method of multi-criterial evaluation can make it easier.

o Most benefits can always be quantified. Where it is possible, express in money and calculate the payback.






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2. Verification of selected solution

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Pilot

What is pilot?− Testing implementation of selected solution in a

small part or scopeWhat are benefits of piloting?− Better understanding of the impacts− Experience „from paper to real operations“.− “Reality test” of a design’s integrity.− Opportunity to improve the design before

implementation on a larger scale.− Minimizing risks associated with cost and

potential problems.

Act

Plan

Do

Check






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6 steps of piloting

1. Define objectives and evaluating criteria for the pilot

2. Determine a pilot scope and where the solution will be tested

3. Develop a comprehensive plan for conducting and evaluating the pilot

4. Implement the solution on an experimental basis

5. Evaluate the pilot and determine next steps based on verified pilot results,

6. Build experience and lessons learned to support a broader deployment of the solution.






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Test – Cardboard Design






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FMEA - Failure Modes & Effects Analysis

Purpose:• Evaluate failure modes (potential errors) and their effects.• Determine preventive measures to prevent them

How?We measure the degree of risk:• severity• occurrence• detection

Inductive model presuming effects of an incident

Incident EffectsLogic of looking ahead






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Why do you apply FMEA

• Make design shorter and effective

• Improve safety and reliability / capability

• Meet high requirements / expectations of customer

• A practical step towards continuous improvement

• Optimize total cost (production, sales, service)






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Steps for completing a P-FMEA

1. Describe process and determine the function of each step to

meet customer‘s requirements

2. Identify potential failure modes (defined as a malfunction)

3. Determine potential effects for each failure

4. Assign a severity ranking to the effects

5. Identify potential causes for each failure






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Steps for completing a P-FMEA

6. Assign a likelyhood of occurrence for each potential cause

Ø Set measures to limit the occurence

7. Assign likelihood of detection for each potential cause

Ø Set preventive or detective measures

8. Calculate a Risk Priority Number (S x O x D)






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FMEA Form

Identify failure modes and their

effects

Identify causes of the failure modesand controls

Prioritize Determine and assess actions






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FMEA - example






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Key MessageVerification of selected solution

o Always test or experiment with your solution beyond normal operation.

o Where possible, perform the FMEA analysis.

o Start the solution in small scale (pilot), here you are well prepared for a broad implementation.






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3. Deploy solutionMake Improvement


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Improvement tools

5S – Right workplace organization


Why is workplace organization important?

In Czech, “5u” is used sometimes instead:

Utřídit.

Uspořádat Uklidit Ustanovit Udržet






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What are these 5S?

The origin of the 5S is Japanese§ Seiri§ Seiton§ Seiso§ Seiketsi§ Shitsuke

English translation• Sort• Set in order• Sweep and clean• Standardize• Sustain






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5S method

What is 5S It’s a journey to develop:ü Safe workplaceü Clean environmentü Better workplace organizationü More free spaceü Effective and efficient process

Wha is not 5S§ It’s NOT only cleaning(Rather, we want to prevent cleaning as a special or extraordinary activity.)§ It’s NOT for others – bosses,

customers(It is here for you to be able to do the job first time right, easily and without much effort.)






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S1 - SortProcedure






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S1 - SortRed tag process (1)

Finditem

Fill in thered tag

Record in log book

Move in quarantine

Worker WorkerWorker Supervisor






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S1 - SortRed tag process (2)

Itemclassific. Auction Record in

log bookMove out

quarantine

WorkerSupervisorManagerManager






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S2 – Set in order / StraightenPlace for everything, everything on its place

1. Decide what where to store

2. Find appropriate places for everything

3. Arrange and furnish the places

4. Implement standardization, make it visual

5. Put everything on its place

13 0

3 6 5






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S2 – Set in order / StraightenExample from daily life






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S2 – Set in order / StraightenExamples of standardization and visualization






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S3 – Sweep / ShinePrevent problems in a clean enviroment






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S3 – Sweep / ShinePrevent problems in a clean enviroment

Clean

Inspect

Lubricate

Repair

1. Plan a big cleaning day

2. Document a current state (what‘s wrong)

3. Execute the cleaning (team)

4. Record problems, abnormalities

5. Plan corrective actions

6. Operate the clean equipment for one shift

7. Clean again and record all problems and abnormalities

8. Implement corrective actions and document a new state






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S3 – Sweep / ShineClean out from top to bottom






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S3 – Sweep / ShineInspect equipment

Problems are visible on cleanequipment

Dirty coversand indicates

problem

A visibleproblem is theproblem you

can solve






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S3 – Sweep / ShineInspection – link between 5S and TPM






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S3 – Sweep / ShineLubrication – another link between 5S and TPM






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S3 – Sweep / ShineRepair early






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S4 – StandardizeEnable “Standard Operations” to work

1

OpDailyDailyDailyDailyDaily5Clean area and empty bag as necessary.

Clean and dust bag not over filled.

Visual & Manual

Dust collector3

2

2

5

Time

OpDailyDailyDailyDailyDailySweep, tidy up, find or replace if missing.

Spill kit complete and orderly.

Visual & Manual

Spill kit4

OpDailyDailyDailyDailyDailyStraighten and position. Dispose of packaging.

Orderly and correctly positioned.

Visual & Manual

Cores & Resin

2

OpDailyDailyDailyDailyDailySweep and Clear UpIs free from, litter, scrap and dust.

Visual & Manual

Floor1

RespFriThuWedTueMonActionCriteriaMethodItemNo

OpDailyDailyDailyDailyDaily5Clean area and empty bag as necessary.

Clean and dust bag not over filled.

Visual & Manual

Dust collector3

2

2

5

Time

OpDailyDailyDailyDailyDailySweep, tidy up, find or replace if missing.

Spill kit complete and orderly.

Visual & Manual

Spill kit4

OpDailyDailyDailyDailyDailyStraighten and position. Dispose of packaging.

Orderly and correctly positioned.

Visual & Manual

Cores & Resin

2

OpDailyDailyDailyDailyDailySweep and Clear UpIs free from, litter, scrap and dust.

Visual & Manual

Floor1

RespFriThuWedTueMonActionCriteriaMethodItemNo

4

Location: B4 D/S Dust CollectorArea Owner: Issue date: 12 July, 2006

5S Area StandardLocation: B4 D/S Dust CollectorArea Owner: Issue date: 12 July, 2006

5S Area Standard

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3

2

2

2






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S4 – StandardizeEnable “Standard Operations” to work

Tools

Visual explanation

Quality inspection

instructions Instructions for safety

5s instructions

Protection

Common mistakes

Maintenance instructions

Text explanation

Who created, checked and approved it






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S5 – SustainRegular evaluation and scoring

Ø Identify what should be monitored and control itØ Implement control tools:

Stock taking (quantity, locations)

Photos Check lists Audits






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S5 – SustainRegular evaluation and scoring

Ø Training (material) for your staff

Ø Boards

o Evaluation / Scoringo Pics wrong / righto Benefits

Ø Posters in workplace






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5S in computersDecluttering your computer

How many messages are in youremail inbox now?

How many of them are clutter?






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Is your computer cloggedwith old files you don‘tneed anymore?

Can you find all the files / emails you do need?

Do you have a system to backup all your files?

Don‘t forget all yourphotos ! :-D






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How much time do you spend on-line?How much of that time is productive?






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Key Message5S

o Without good practice of 5S, it is unlikely that all other elements of the “lean" system will be retained.

o The most important and difficult is the last 5th S. Make audits, motivate people, try to change their inappropriate attitudes and behavior.






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Improvement tools

Zero defects


What are reasons for errors?






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What is Error Proofing?

„Poka-Yoke“ (in Japanese)• Using process or design features to prevent errors ortheir negative impact• Inexpensive• Very effective• Based on simplicity and

ingenuity

Typical benefitsü Defect reduction by 70-90%ü Productivity increase by 30-

60%ü 75% less injuriesü Significant cost reductiono reduced reworko reduced scrapo reduced waranty costo reduced inspection cost






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Correcting cost vs. benefits of poka-yoke

1 – 10 – 100 RuleAs a product or servicemoves through thesystem, the cost ofcorrecting an errormultiplies by 10.At:order entry 1 $billing 10 $customer 100 $






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Levels of error proofing

1. Prevention◦ make it impossible

to make an error◦ make it difficult to

make an error2. Detection

◦ make it obvious anerror has occured

3. No impact◦ make only „no

impact“ error

Two types of Poka-Yoke






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Error proofing solutions- Process barriers

Contact (form, size) Calculation Sequence control






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Error proofing example- Impossible to make an error






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Error proofing example- Impossible to make an error






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Error proofing example- Difficult to make an error






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Error proofing example- Difficult to make an error






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Error example- „No impact“ error






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Error proofing example- Industry 4.0

Assisted assembly Controlled assembly






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Key MessageZero Defects

o Errors / defects are evidence of poor process design, low technology capability, or environmental problem. The problem is not people.

o Quality shan’t be checked, but produced. Implement error proofing solutions and eliminate the need to inspect a quality.

o The benefits of poka-yoke solution many times exceed its cost.






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Lean Six Sigma • Green BeltPwC

74


Improvement tools

Problem Solving

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75

A3 thinking

Purpose of A3:§ Problem solving

system (8D, PDCA, DMAIC)

§ Learningstandardizedmethod

§ Developing CI culture

§ Mean ofcommunication and documentation






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Types of A3 charts- A3 Project chart






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Types of A3 charts- A3 Problem Solving






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Types of A3 charts- A3 DMAIC report






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Key MessageA3 thinking

o Use anywhere it is possible, because it's a great helper and guide:o to solve a problemo to plan a projecto to develop and learn a continuous improvement

o Just pencil and blank forms in your block and you can use it anytime, anywhere

o By using when working with colleagues, you will teach them structured thinking






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Contact

Roman BauerExperience the joy of work

Lean Manager, Consultant, Trainer

E: [email protected]: (+420) 602 154 168

Documents

Lean Six Sigma Green Belt Training … › wp-content › uploads › 2017 › 10 › ...Six thinking hats technique “Discoveries” during analysis Benchmark ideas Ideas from other