OAKLAND

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DRIVERA European Lean Six Sigma Process

Improvement Methodology

Paul White Oakland Consulting

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Agenda

• Oakland Consulting

• Process Improvement Methodologies

• Lean Principles

• Six Sigma Overview

• DRIVER:

> Process Focus

> Deployment Strategy

• European Aeronautical Defence Sector (EADS)

• EADS DRIVER Case Study

• Questions & Answers

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Some of our Private Sector Clients

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Some of our Public Sector Clients

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Workshop Discussion

• What methods can we use to protect the customer?

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100% Inspection – Does it work?

Workshop Discussion

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Will 100% inspection protect the customer?

Scenario

Oakland’s Marketing Department are very proud of the publications they produce.

The customers of Oakland expect the highest quality publications.

Therefore, the manager of the publications department has decided to employ you as an inspector at the end of the printing process to ensure that the text produced is accurate.

You have 30 seconds to inspect the following set of text and count how many times the letter ‘F’ appears, (upper & lower case) including the title.

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Finished files are the results of many years of sceintific studies combined with the experience of many years of

effort

F-Test

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How many did you see?

Have another look!

F-Test

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Finished files are the results of many years of sceintific studies combined with the experience of many years of

effort

F-Test

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Did anyone change their mind?

F-Test

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Finished files are the results of many years of sceintific studies combined with the experience of many years of

effort

F-Test

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Did you spot anything else?

F-Test

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Finished files are the results of many years of sceintific studies combined with the experience of many years of

effort

F-Test

F-Test

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100% Inspection – Does it work?

Workshop Discussion

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Process ImprovementMethodology Objective

Waste Elimination / Defect Reduction

Efficiency / Yield Improvement

Improved Customer Satisfaction

Higher Shareholder Value

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Process Improvement Methodologies

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Plan, Do, Check, Act

Check

What happened?

• Measurement• Assessment• Analysis

Do

What action?

• Prepare for implementation• Training• Communication• Implement improvement• Change management• Project management

Plan

What focus?

• Project goals/measures• Set up team• Map process• Measure process• Identify key problems• Find root causes• Identify solution• Plan for implementation

Act

What now?

• Review• Project revision• Standardisation• Share learnings• Further improvement

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1. Identify the team • Build cross-functional team

2. Define the problem

• Where, when, etc.• Is/Is not analysis• Process map• Measure and set objective

3. Contain the symptom• Short-term solution• Rescue affected customers

4. Identify root causes • Use FMEA, Five Whys• Identify and check root cause

5. Choose corrective action• Focus on fixing root causes• Set targets and owners for implementation

6. Implement corrective action • Implement to plan• Collect data to prove success

7. Make change permanent• Documentation• Revise targets, FMEAs, etc.

8. Recognise the team• Recognise individuals and the team• Celebrate success

Global 8D

0. Emergency Response Action • Protect the customer

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DMAIC

Define

Measure

Analyse

Improve

Control

• Identify champion and owner• Initial assessment of situation• Define scope and goals of project

• Map process• Validate measurement system• Calculate process capability

• Analyse for sources of variation• Identify potential root causes• Verify actual root cause

• Develop solution• Create new process map• Cost / benefit analysis

• Standardise• Sustain the gain• Develop control strategy

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DRIVERA European Lean Six Sigma Improvement Methodology

D DefineDefine the scope and goals of the improvement project in terms of customer and/or business requirements and the process that delivers these requirements.

R Review Map the ‘as-is’ process and measure the current process performance to understand the ‘value-add’

I Investigar Analyse the gap between the current and desired performance, prioritise problems and identify root causes of problems.

V VerbessernGenerate the improvement solutions to fix the problems and prevent them from reoccurring so that the required financial and other performance goals are met

E ExecuteThis phase involves implementing the improved process in a way that “holds the gains”. Standards of operation will be documented in systems such as EN 9100 and standards of performance will be established using techniques such as Statistical Process Control

R Renforcer Capitalise the improvement by ‘learning the lessons’ and establishing process re-assessment for continuous improvement

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Methodology Comparison

1. Identify team

2. Define problem

3. Contain symptom

4. Identify root causes

5. Choose corrective action

6. Implement corrective action

7. Make change permanent

8. Recognise the team

Define

Measure

Analyse

Improve

Control

Do

Act

Check

Plan

PDCA DMAIC8D

Define

Review

Investigar

Verbessern

Execute

DRIVER

Renforcer

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DRIVERA holistic approach

DRIVER training also includes ‘project management’ & ‘change management’

VariationWaste

TIME

COST€€€

QUALITY

Process Improvement

Lean Six Sigma

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Lean Principles

Cost€€€

QualityTime

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Lean Principles

• Lean principles are based on the Toyota Production System (TPS)

• TPS was developed after benchmarking the Ford Motor Company

River Rouge plant in Detroit in the 1950’s.

• The key characteristics of TPS / Lean are:

> Only producing what is required, when it is required

> Close links throughout the supply chain – just in time

> Producing right first time

> A lean mindset & company culture

> The elimination of non-value added activity (waste)

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World Class Companies: ‘NVA’ = 80% TTT

Remove Waste, don’t Improve the Value-Add

Total Throughput TimeTotal Throughput Time = Value-add time

Non-Value Add + Non-Value Add + Other timeOther time+

LeanEliminate Waste to Improve the Value Stream

Usual FocusWork longer-harder-faster,add people, complexity or

equipment

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Typical ‘NVA’ = 99% TTT

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Over-production

Motion

Inventory11

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WASTE

Waiting

Defects (Scrap/Rework)

Over-processing

Transportation

The 7 wastes

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LEAN Concepts

• Standardised Work

• Waste Elimination

• Parallel Processing

• Cell Layout

• Batch Reduction

• Quick Changeover

• Line Balancing

• Other Concepts

• Visual Management

• 5 S

• Error Proofing

A Lean Example

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Workshop Discussion

• Are Lean principles only applicable to manufacturing processes?

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Six Sigma Overview

Cost€€€

QualityTime

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What is Six Sigma?

• Six Sigma is focused on improving the quality of our products and services

• How do we define the term ‘quality’?

• The generic definition of quality is ‘meeting or exceeding the customer requirements’

• The customer of a process can be internal or external

• Therefore, Six Sigma improves quality, thus, improving customer satisfaction

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Six SigmaSatisfying the Customer

DefectsDefects Acceptable

LSL USL

Customer Requirement

Process Performance

Sigma is a capability metric that compares process performance against customer requirements

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Is 99% Quality Good Enough?

6 Sigma99.99966% Good

6 Sigma99.99966% Good

1 short or long landing every 5 years

3.8 Sigma99% Good3.8 Sigma99% Good

2 short or long landings at an airport per day (200 daily flights)

Unsafe drinking water for almost 15 minutes each day

Unsafe drinking water one minute every seven months

5,000 incorrect surgical operations per week (500,000 operations per week)

1.7 incorrect operations per week

10,700 defects per million opportunities 3.4 defects per million opportunities

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Quantifying Process Capability

VARIABLE DATA

Cp

Pp Ppk

Cpk

ATTRIBUTE DATA DPMODPUPPM

}

Sigma is a universal measure of process performance

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Variable process capability is the ability of a process output to ‘fit’ between the specification limits which are defined by the customer requirements.

Variable Process Capability Analysis

43 5 6 743 5 6 7

Can this distribution from a process output fit between the specification limits of 5 1?

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LSL USL

Tolerance Process spread

LSL USL

Mean

Capability is an assessment of: process spread as a ratio of the process tolerance. – Cp / Pp

Cpk / Ppk is the location of the process mean with respect to both process specification limits.

Variable Process Capability Analysis

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Cp =

Cp =

Cp =

Cp =

Cp =

LSL USL

1

3

2

0.5

1

Workshop ExerciseCp

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Cpkl = 1

LSL USL X

Cpkl = 5

X

Cpkl = 1X

Cpkl = 0.5 X

Cpkl = 3

X

Cpku = 1

Cpku= 1

Cpku = 3

Cpku= 0.5

Cpku = -1

Workshop ExerciseCpk

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Cp / Cpk Simulation

http://www.lkl.ac.uk/research/technomaths/tools/spctools/

Cp Cpk

The London Institute of Education utilised digital technology to create a Cp / Cpk training tool to enhance learning in the workplace.

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DRIVER – Process Improvement

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DRIVERThe Process Focus

Optimised Process

3-5 x’s

40–60 x’s: Inputs

Define: Grasp the problem & identify objectives

Review: Map ‘as-is’ process & current performance

Investigar: Analysis & root cause identification

Verbessern: Solution generation & prioritisation

Execute: Implement solutions to ‘sustain the gain’

Renforcer: Share best practice & lessons learnt

Y: Output

3-5 x’s

3-5 x’s

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Customers of Products and Services

Green Belts

Black Belts

Project Champions

Master Black Belts

DRIVER Deployment StructureInverting the hierarchal triangle

Executive Black Belts

DRIVER deployment is led by executives to ensure company wide support

DRIVER Project Checklist

© Oakland Consulting Plc. All rights reserved.

Define Review Investigate Verify Execute Reinforce Develop problem

statement Identify project

scope Determine

SMART objective Formulate project

team with R&Rs SIPOC map Define CTQs Stakeholder map Develop comm-

unication plan Develop outline

project plan Refine & sign-off

Project Charter Project sponsor

approval

‘Current state’ process map

Identify potential quick wins

Identify measurements to be taken

Develop data collection plan

Collect data Calculate

baseline process capability (KOMY)

Revisit problem statement

Project sponsor approval

Analyse Waste – Lean Toolkit

Analyse Variation – Six Sigma toolkit

Team brainstorm to identify root causes

Document root causes on Cause & Effect diagram

Select top 3-5 root causes

Validate root causes

Project sponsor approval

Team brainstorm solutions

Select optimum solutions

Conduct pilot study (or FMEA)

Verify improvements

‘Future state’ process map

Review stakeholder map and comms plan

Implementation business case (cost / benefit)

Implementation timing plan

Project sponsor approval

Implement actions on timing plan

Select control techniques (SPC)

Update or create SOP / SLA

Develop control metrics (KPI’s)

Disengage old process

Monitor progress Validate

improvements: process capability (compare against baseline Y)

Handover to process owner

Project sponsor approval

Monitor progress

Share lessons learnt (organisation memory, newsletters etc)

Thank the team Celebrate

success Plan future

activities Project sponsor

approval

End Date: End Date: End Date: End Date: End Date: End Date:

Key:

Completed– In progressX Not required

R&R Roles and responsibilitiesKOMY Key Ouput Metric YCTQ Critical to QualitySOP Standard Operating ProceduresSLA Service Level Agreement

Project Leader: .........................................................

Project Sponsor: .......................................................

Process Owner: ........................................................

Team Members: .......................................................

Start Date: ................................................................

Project Title:

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European Aeronautical Defence Sector (EADS)

Military Transport

Eurocopter AstriumAirbus Defence & Security

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EADS Version of DRIVER

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MTAD - Improve super plastic forming process EF-2000 slats

Situation : Deviations in slat spar position cause scraps and repairs at assembly leading to non quality costs and manufacturing lead-time increase.

Performance :

• On-quality 27% spar position values. 8.5% scrap.

•132.000 € non quality costs

Situation : Deviations in slat spar position cause scraps and repairs at assembly leading to non quality costs and manufacturing lead-time increase.

Performance :

• On-quality 27% spar position values. 8.5% scrap.

•132.000 € non quality costs

• D – Stake-holder analysis, DoE training, Pareto analysis for scoping.

• R – Process map & key parameters, run charts, histograms.

• I – Run charts, Process capability analysis, Scatter plot.

• V – Variance & correlation analysis, Pareto, Rules determination.

• ER – SPC, KPI monitoring

What has been done Achievements

Context

EF-2000 Slat Superplastic forming process

METRICBASELINE RESULTS

% NON CONFORMING VALUES (REPAIRS)

73% 23%

%SCRAP 8.5% 1.3%

%CONCESIONS 89% 20%

%HNC´S 100% 60%

LEAD TIME 50 days 42 days

WORK IN PROCESS 333,774 € 280,946 €

NON QUALITY COST REDUCTION (*) 130.920 €

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User Help Desk Process Improvement

•D Processes identification, Prioritisation, Voice of Customer, Voice of Business

•R Process mapping, waste identification•I Statistical analysis (process capability,

Pareto), root cause•V Solution generation, waste reduction,

external benchmark, business case•E Responsibility charting, implementation•R Full deployment proposal

What has been done Achievements

Situation :Information Management integration at company level with numerous local processesPerformance :On time Incident Resolution performance fluctuated a great deal from process to process

Context

• Buy-in facilitated by the DRIVER method

• Performance increased by 40% (increase of calls closed by UHD)

• Cost base sustainable benefit exceeding 400 K€ per year for Germany and France

Performance

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Summary

• Oakland Consulting

• Process Improvement Methodologies

• Lean Principles

• Six Sigma Overview

• DRIVER:

Process Focus

Deployment Strategy

• European Aeronautical Defence Sector (EADS)

• EADS DRIVER Case Study

• Questions & Answers

OAKLAND

CONSULTING

Questions and Answers

Paul White Oakland Consulting