Purpose-Based Lean Six Sigma

Heather Goulet, Ph.D.

Lean Six Sigma Manager, Doosan Bobcat

9/12/18

Doosan Bobcat

Starting with Purpose

The purpose of this presentation is to:

• Discuss Lean Six Sigma challenges and share Doosan

Bobcat’s vision to address

• Connect with purpose to addressing challenges

• Encourage you to start with purpose when facing Lean

Six Sigma challenges

2

Doosan Bobcat

Agenda

•Introduction – Doosan Bobcat and Lean Six Sigma

•Purpose – what is it?

•Lean Six Sigma – connecting to purpose

3

Doosan Bobcat

Introduction – Doosan Bobcat

4

Skid-Steer Loaders Compact Track Loaders Mini Track LoadersCompact Excavators Toolcat™ Telehandlers

• Started in North Dakota (1947)

• Largest ND manufacturer

• Three ND production facilities

• 1000 dealerships worldwide

Doosan Bobcat

Introduction – Lean Six Sigma at Doosan Bobcat NA

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> 600 trained and/or certified belts across all functions

• 50% Yellow

• 37% Green

• 13% Black, Master Black

3 levels of training facilitated internally

• Yellow – lean, Kaizen focus

• Green – DMAIC focus + Kaizen

• Black – mentor/leadership focus + DMAIC + Kaizen

8 full-time staff dedicated to continuous improvement

• Black Belts (4) – one at each ND site + Statesville, NC

• Lean Promotions Agents (4) – 1-2 at each ND site

Doosan Bobcat

What is the WHY/Purpose of Lean Six Sigma?

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Lean Six Sigma WHAT/HOW/WHY:

WHAT: efficiency gains, waste/variation reduction

HOW: tools, belts, training

WHY: ??? – what is the WHY/purpose of Lean Six Sigma?

From https://startwithwhy.com/, Find Your Why (Simon Sinek)

Doosan Bobcat

Why Lean Six Sigma?

From Kubiak, T.M., and Donald W. Benbow. The Certified Six Sigma Black Belt

Handbook, 3rd ed. 2016. Milwaukee: ASQ Quality Press,

“Lean Six Sigma is a fact-based, data-driven philosophy of improvement that values

defect prevention over defect detection. It drives customer satisfaction and bottom-

line results by reducing variation, waste and cycle time while promoting the use of

work standardization and flow, thereby creating a competitive advantage. It applies

anywhere variation and waste exist, and every employee should be involved.”

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• Why fact-based, data-driven?

• Why defect prevention?

• Why reduce variation, waste, cycle time?

• Why standardize work?

• Why should every employee be involved?

• Why Lean Six Sigma?

Doosan Bobcat

Common Challenges with Lean Six Sigma

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These questions are more easily answered with PURPOSE

- the WHY behind Lean Six Sigma

• Organizational engagement – what is the benefit, why?

• Training – what is the return, who needs it and at what level?

• Using, following processes – takes too long, too cumbersome

• Achieving results – quantifying, agreeing upon, documenting

• Sustainment – results, training, overall program

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Organizational Engagement

Doosan Bobcat

Organizational Engagement at Doosan Bobcat

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(pre-2012)

LSS Start

• Top-down support

• Focus on Lean

• LPMS* kick-off

• Dedicated belts focused on projects

• Training program development

2012 – 2017

LSS Growth

• KPIs (VP alignment, planning)

• Focus on certification

• LPMS* maturity

• Belts throughout functions

• Growth of training programs

2018+

LSS Acceleration

• Top-down commitment

• Focus on execution, results in all functions

• Prioritization

• Belt utilization

• Functional mentoring

*LPMS = Lean Promotions Management System

Doosan Bobcat

Top-down Commitment – KPIs, Belt Selection

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2017 “Current State”Certification % by function

2018+ “Future State”Role-based belts

What is needed by role?

• Yellow – lean, Kaizen focus

• Green – DMAIC focus + Kaizen

• Black – mentoring, project selection

Co

mm

itme

nt

Why these

individuals?

Why each belt

level?

Doosan Bobcat

Organizational Engagement – Benefit, Why?

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Why do we need organizational engagement?

• This is an absolute requirement, unless failure is desired

Why should the organization support Lean Six Sigma?

• Results – measuring, managing, achieving

• Employee development

• Continuous improvement culture

• Collaboration

• Innovation

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Training

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Yellow Belt (YB)

• Lean/DMAIC fundamentals application

• Kaizen execution (w/ coach)

Green Belt (GB)

• Lean/DMAIC/DMADV tools application

• Kaizen, project leadership (DMAIC, DMADV)

Black Belt (BB)

• Lean/DMAIC/DMADV tools mastery

• Kaizen, project leadership (DMAIC, DMADV)

• Kaizen, project, tools coaching/mentoring

Training and Certification at Doosan Bobcat

Belt Levels Key Considerations

• What belt levels are

needed to achieve desired

results?

• What training is needed to

appropriately equip belts?

• How do belts demonstrate

effectiveness?

• What is needed to support

belts (mentoring, other)?

Doosan Bobcat

Belt Strategy and Expectations Tied to Purpose

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• Yellow – lean, Kaizen focus (50%)

• Green – DMAIC focus + Kaizen (37%)

• Black – mentor/leadership focus + DMAIC + Kaizen (13%)

Yellow Belt Certification:

• Structure: Training + Kaizen execution with support of a coach/trainer

• Training content: Lean, DMAIC fundamentals

• Purpose: Kaizen execution (w/ a coach) + results

Doosan Bobcat

Belt Strategy and Expectations Tied to Purpose

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Green Belt Certification:

• Structure: Training + Kaizen leadership + project leadership

• Training content: DMAIC application and tools, project execution

• Purpose: Project and Kaizen leadership + results

• Yellow – lean, Kaizen focus (50%)

• Green – DMAIC focus + Kaizen (37%)

• Black – mentor/leadership focus + DMAIC + Kaizen (13%)

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Black Belt Certification:

• Structure: Training + Kaizen/project leadership + mentoring

• Training content: mentoring, leadership, DMAIC in-depth (mastery)

• Purpose: Project/Kaizen identification/leadership + mentoring + results

• Yellow – lean, Kaizen focus (50%)

• Green – DMAIC focus + Kaizen (37%)

• Black – mentor/leadership focus + DMAIC + Kaizen (13%)

Project selection

Belt Strategy and Expectations Tied to Purpose

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Training and Certification at Doosan Bobcat

What is the return on certification and how is effectiveness demonstrated?

• Yellow Belt return

• During training = Kaizen results

• Long-term = Kaizen results throughout functional areas

• Green Belt return

• During training = Project results

• Long-term = Project/Kaizen results – “killing problems”

• Black Belt return

• During training = Project results

• Long-term = functional project/Kaizen selection (tied to top

objectives, KPIs), project/Kaizen results – “identifying and killing the

right problems”

Effectiveness demonstration: CERTIFICATION CRITERIA

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Using, Following Processes

Doosan Bobcat

Following Processes at Doosan BobcatCurrent State – “takes too long”, “too cumbersome”

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PHASES DEFINE MEASURE ANALYZE IMPROVE CONTROL

KEY OUTCOMES

Consolidate all

information that supports

the need for this project.

Define customer voice

and requirements.

Collect all data needed

for executing the project.

Build current state.

Analyze data collected to

draw conclusions about

root cause and potential

corrective actions.

Develop Future State.

Implementation of key

improvements

Ensure and track

effectiveness &

sustainability.

Project Charter Measurement Plan Opportunity Prioritization Idea Generation/Rating Updated Metrics

Project Plan / Schedule Baseline Data • Pareto • Brainstorming Control Plan(s)

SIPOC:Current State • Primary/Secondary

Metric • Prioritization Matrix • 7 Ideas Lessons Learned

Stakeholder Analysis • Reliability Target

(B Life)Causal Analysis • Pugh Matrix Project Savings Analysis

Communication Plan • 5S Assessment • 5 Whys • PICK Chart Standard Work

Resource Plan Current State Process • Fishbone Diagram • Affinity Diagram Audit Plan(s)

Is / Is Not Chart • Process Map/SIPOC • Screened/vital X's Future State Process Map Training Plan(s)

Critical Cust. Requirements

(CCR) • Spaghetti Chart • FMEA Implementation Plan Statistical process control (SPC)

• Value Stream Map Control Charts Kaizen Event(s)Future Continuous

Improvements

Potential X's Correlation DOE (optimizing)

Measurement System Analysis Regression Simulation

Value Curves Defined Process Capability Improve Data Analysis

ANOVA Tests of Statistical Significance

Hypothesis Testing Quick Changeover

DOE (screening)

Project Deck Update Project Deck Update Project Deck Update Project Deck Update Project Deck Update

Mentor Approval of DEFINE Mentor Approval of MEASURE Mentor Approval of ANALYZE Mentor Approval of IMPROVEMentor Approval of CONTROL and

Project Closure

Rev. 6/19/17

DMAIC Project Deliverables

Tools in red are required; exception (not required) if a new process / product *

Reco

mm

en

ded

To

ols

Re

qu

ire

d T

oo

ls

STOP STOP STOP STOP STOP

• Multiple locations for files

• Multiple options for tools

• PowerPoint used to “demonstrate”

• Time-consuming

• Confusing post-training

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Following Processes at Doosan BobcatFuture State – Simplified Process to Achieve Results

• ALL projects in ONE place – LSS, NPD, IT, etc.

• Tools tied to deliverables, tied to methodology (Kaizen, DMAIC)

• PowerPoint no longer needed

• Process drives the work – no longer “extra” work

• Encourages using the methodology FROM THE START vs. after to certify

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Achieving Results

Doosan Bobcat

Achieving Results at Doosan Bobcat

Project Selection

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Identify methodology • Kaizen, DMAIC, other?

• PICK chart:

LRP/AOP Project

Prioritization

DMAICKaizen/JDI

JDI* Kill

*JDI = just do it

Purpose:

• Identify projects tied to strategic

goals for all functions

• Align projects to appropriate

methodology

• Ensure resources are available to

execute projects

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Achieving Results at Doosan Bobcat

Demonstration

Purpose #1: REAL savings aligned with Finance and tied to bottom line

• Universal calculation of

project benefits for ALL

projects (not just LSS)

• Review of project benefits

with Finance

• Project prioritization based

on planned project benefits

• Ease of reporting

• By department

• By project type

• By site

• Etc.

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Achieving Results at Doosan Bobcat

Demonstration

Purpose #2: ensure that the right problem is killed, and that learning and

lessons learned are built upon for future improvements

Define

Measure

Analyze

Improve

Control

• Problem statement verified?

• Project plan/schedule?

• Resource plan/team?

• Is there a plan for collecting data?

• Baseline established?

• Current state process understood – 5W1H?

• Potential causes (fishbone, 5 whys, FMEA)?

• Top contributors to problem (Pareto, prioritization)?

• Statistical, hypothesis testing to identify root cause(s)?

• Idea generation/rating to improve/design solution(s)

• Develop, design, then test ideas/designs

• Improve data analysis – demonstrate improvement

• Updated metrics – what was the impact, project benefits?

• Control plan – how do we sustain improvements?

• Lessons learned?

How do Belts

“show” that right

problem is solved

down to the root

cause?

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Sustainment

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Sustainment at Doosan Bobcat

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• Results

• Effective training, certification program

• Mentoring

• Recertification

Doosan Bobcat

Sustainment at Doosan Bobcat

Mentoring

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2017 “Current State”Mentoring by LSS team

2018+ “Future State”Functional mentoring

4 Black Belts

~300 Belts to mentor (GB, BB)

4 Lean Promotions Agents

~300 Belts to mentor (YB)

Not effective

• Time constraints

• Execution limitations

• Lack of ownership

• Project knowledge constraints

80 Black Belts

~200 Belts to mentor

220 Green Belts

~400 Belts to mentor

Doosan Bobcat

Sustainment at Doosan Bobcat

Recertification

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2017 “Current State”Three-year recertification

2018+ “Future State”Annual recertification

Expectation

• Continuous activity in Y1, Y2, Y3

Reality

• Limited activity in Y1, Y2

• Considerable activity in Y3

Issues

• Limited results

• Sporadic activity

• Lost knowledge

• Lost focus

• Mentoring – more demanding

• More work in shorter time period

Yellow

Belt

Green

Belt

Black

Belt

Kaizens

(participate)1 1

N/A

Kaizens (lead or

mentor)1

Projects (lead) N/A 1 1

Projects (mentor) N/A N/A 1

Knowledge check N/A N/A Yes

• Continuous activity and results

• Reduced loss of knowledge, focus

• Improved mentoring

Doosan Bobcat

Conclusion - Common Challenges with Lean Six Sigma

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Are these questions more easily answered with PURPOSE?

(the WHY behind Lean Six Sigma)

• Organizational engagement – what is the benefit, why?

• Training – what is the return, who needs it and at what level?

• Using, following processes – takes too long, too cumbersome

• Achieving results – quantifying, agreeing upon, documenting

• Sustainment – results, training, overall program

Doosan Bobcat 31

Doosan Bobcat

Thank You!

Questions?