Embed Size (px)
Citation preview
Non-Business Use
OE Through Lean Six Sigma
Mohanned Al Saihati
Non-Business Use
Non-Business Use
Agenda
Operational Excellence OE in Oil & Gas What? Why? How?
1 2 Lean Six Sigma Objectives & definitions Deployment strategy (Real Example)
The road towards excellence
3 4 Summary Q&A
Non-Business Use
Operational Excellence
What has been the problem with the Oil & Gas industry?
Big profit margins $$?
Non-Business Use
Operational Excellence
• What is OE ?
• OE models ?
Plan
Do Check
Act
Non-Business Use
Operational Excellence
Why do we want to apply OE & what do we want to accomplish ?
Customer Satisfaction
Efficiency = $$$
Non-Business Use
Operational Excellence
How to be profitable while achieving high customer satisfaction ?
Delivering competitive high quality services
Is achieving enough?
How can we sustain it?
Adapt to CHANGE
Non-Business Use
Operational Excellence
What is Agility ?
How to be Agile?
Non-Business Use
Where They Agile ?
Non-Business Use
Operational Excellence
Continues Improvement & Innovation Culture
Non-Business Use
Operational Excellence
How to continually improve and innovate ?
Lean Six Sigma!!
Non-Business Use
Lean Six Sigma
Non-Business Use
Lean
Non-Business Use
Six Sigma
Non-Business Use
Six Sigma
Sigma Level Defects Per Mill. % In Spec.
2 308,500 69.1
3 66,800 93.3
4 6,200 99.4
5 233 99.98
6 3.4 99.9994
Non-Business Use
Why 99% is Not Good Enough?
20,000 lost articles of mail per hour
5,000 incorrect surgical operations per week
Two short or long landings at most major airports each day
200,000 wrong drug prescriptions each year
3.8-Sigma
99% Good
Seven articles lost per hour
1.7 incorrect operations per week
One short or long landing every five years
68 wrong drug prescriptions per year
6-Sigma 99.99966%
Good
3.4 defects per million
opportunities
Based on U.S. statistics in the 1990s
Non-Business Use
Combing Lean & Six Sigma?
• Provide a centralized and standardized Process Improvement Program
• Focus on Quality, Delivery and Cost.
• Transform Workforce toward data-oriented decision making culture
• Build a common language across organization
Non-Business Use
Lean Six Sigma
You know the methodology ?
You are trained?
You are certified?
Now what?
Non-Business Use
Lean Six Sigma Deployment
• Strategy Who will lead? How to select projects ? Resources ? Deadlines ? Challenges ? Buy-in? Training?
Non-Business Use
Lean Six Sigma roles & responsibility
Team Members: SMEs who support projects in their areas.
Green Belts: Fully-trained LSS practitioners who use Lean Six Sigma skills to complete improvement projects in their job areas, usually mentored by a Master Black Belt.
Process Owner: Responsible for ensuring that the new process and methods developed by the team are implemented and become the accepted practice in the business.
Master Black Belts: Fully-trained, full-time cross-functional quality leaders who are responsible for Lean Six Sigma strategy, training, mentoring, deployment and results.
Champions: Business leaders who own the processes and help the GB/BB implement project recommendations.
Non-Business Use
Lean Six Sigma Deployment
• Master Black Belt Change Agent & Leader Facilitator Negotiator Strategic thinker Analyzer Focuses on the Big picture Management consultant
Non-Business Use
Lean Six Sigma Deployment
• Getting Buy In form the leaders What is in it for them? What do we need from them ? Lean Six Sigma Awareness ? High level objective ? Selection criteria ?
Non-Business Use
Lean Six Sigma Deployment
Problem Statement Formulation well-defined problem statement describes the pain.
1.What is wrong or not meeting your customer needs?
i. Quantified metric (KPI) that describes current performance (Baseline) ii. Compare the baseline with a “Benchmark” or “Standard” to highlight the problem.
2.When and Where do the problem occur?
i. When: Include the time period of the data taken to arrive at the baseline ii. Where: Location, Department, Unit, etc.
3.How big is the problem and the negative impact of the problem.
Non-Business Use
Lean Six Sigma Deployment
Problem Statement Formulation Mistakes Problems poorly defined or not quantifiable
Problem does not link to Voice Of the Customer (VOC) or departmental / admin area KPIs.
Measurement method not validated
Problem is stated as predetermined solution or a root cause
Problem statement is too narrowly or broadly defined
Non-Business Use
Lean Six Sigma Deployment
• Original Customers take too long to pay us (95 days average)
• First Revision 45% of our XYZ customers take more than 65 days from the final billing date to pay
us. The average payment time was 95 days.
• Final Over the last 3 quarters of 2007, out of 5000 customers, the average payment time
was 95 days with Standard Deviation of 23 days. 45% of our xyz customers took more than the target date of 65 days to pay us. This leads to problems in cash flow and negatively impacts our profitability.
Non-Business Use
Lean Six Sigma Deployment
• Projects Leaders identification (Green Belts or Black Belts) A person with the potential to create synergy between their existing
knowledge of operations and their new knowledge of and ability with Lean Six Sigma methods and tools
Selected for technical proficiency, interpersonal skills, and leadership ability
Further developed by LSS methodology training, statistics training, and
mentored reviews
Non-Business Use
Lean Six Sigma Deployment
Training Yellow Belt
• 2 – 3 days
Green Belt • 2 weeks
Black Belt
• 1 extra week
Non-Business Use
Lean Six Sigma Deployment
• SME identification Provide expertise on their process Brings skill(s) in specific areas to the team Support GBs or BBs in completing projects Help management ensure improvements are sustained
Non-Business Use
Lean Six Sigma Deployment
Execution Methodology (applying the LSS tools) DMAIC
Is it Systematic ?
Is it Fixed ?
Non-Business Use
Lean Six Sigma Deployment
• Project finalization, Certification & Recognition Must be presented to upper management Certification is awarded upon successful completion & implementing Recognition must be seen by other employees
Non-Business Use
OE Through Lean Six Sigma
Done with your Lean Six Sigma Program?
Now What?!
Non-Business Use
Lean Six Sigma Deployment
• Best Practices & Lessons Learned Spend enough time in the problem definition Select the high impact projects (80/20) Always find the WIIFM factor Never forget the recognition of the accomplishment No management buy in, don’t do it Don’t over complicate the workshops Root cause analysis can make it or break it
Non-Business Use
Root Cause Analysis
Korean Airline
Non-Business Use
Summary
Customers
Lean Six Sigma
OE
Non-Business Use
What is the population of the world?
7.5 Billion
Are you unique?
Non-Business Use
I will be happy to answer your questions..
Thank You!
Non-Business Use
Develop solution options Prioritize solutions and
select final solution Develop to-Be Process Map Update FMEA for To-Be
process map Create implementation plan Obtain buy-in / support for
improvement actions Implement improvements Communicate results Update Charter
• as required Develop Improve report out
• For Sponsor
Analyze Process Flow Analyze Data Identify and collect
additional required data
Identify significant Xs Update charter as
required Develop Analyze
report out • Standard template
Collect Data on Y Evaluate Measurement
Systems Create Cause Effect
diagram (Fishbone) Understand detailed
process Perform FMEA Describe Process
• Numerical statistics • Graphs: Time, Hist., Pareto,
etc. Establish Process Capability
• DPMO or % Defects • Calculate Z Update Charter
• as required Prioritize the causes Finalize data collection plan
for causes Develop Define/Measure
report out • Standard template
Analyze Improve Control Measure Define Project Identify Sponsor and other
key stakeholders Form project team
• Team leader • Team members Tour process Clarify project
• Problem statement • Goal statement • Process output = Y Define process boundaries
• SIPOC Determine project timeline Identify Customer
Requirements • Define the Defect • Define defect measure Develop estimate of
potential financial benefit if project goal is achieved
Gain Sponsor Approval of Project Approval Form
Change Management Plan
Define Perform Capability
Analysis of improved process Develop and Implement
Control Plan Complete Project Closure
Package Update financial benefits
statement as required List best practices Hand off project to
process owner • Create follow up action
plan Develop Final report out
• Standard template
Lean Six Sigma Project Management Deliverables Checklist
