How To Drive Productivity in YourOrganization Through the Use of Continuous Improvement Tools

Bertram WellsManager- Organizational DevelopmentLexington, Kentucky

Who is Schneider Electric?

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Energy production

Energy Usage

•Thermal•Nuclear•Genset•Hydro•Solar•Wind

•Appliances•HVAC•Lifts•Motors •Machines•Conveyors•IT servers

EnergyManagement

Making energy:•Safe•Reliable•Efficient•Productive•Green

We are the global specialist in energy management

We help our customers making the most of their energy

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A global companyData at end 2008

27%28,000

North America44%48,000

Europe

19%29,000

Asia-Pacific

10%9,000

Rest of the world

€18.3B revenue• Presence in

more than 100 countries•More balanced exposure by region•New economies

sales x2.2 since 2004

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We see six trends in our world

Energy as the key challenge for our planet

Emergence of new economies

as a major opportunity for our generation

Connectivity for everything, everywhere at any time

Globalization allowing anybody to get the best of the world

Simpler solutions for the increasing complexity of our life and work

Security as a growing and global concern

Continuous Improvement, what does it mean to you?

Lean

6 Sigma

Project

M

Change

M

TPM

TOC

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Lean6SigmaLean6Sigma

As a team answer the following questions

1. Why are there so many different CI tools?

2. How do I know what tool to use?

3. When do I use the different tools?

Six Sigma

Lean

Project

MgtTPM

TOC

Change

Mgt

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Question

How many drills were sold in the USA in (2008)?

Why did people buy drills?

They wanted a hole, not a drill

If they could have made a hole without the drill, would they have spent the money?

Understand the defect before reaching for a tool

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Lean A philosophy and a system of tools used to:

Shorten the time between customer orders and delivery Increase offerings of products and services Reduce costs by eliminating waste thru process

standardization and improvement

What should be considered?

Value-added – Directly contributes to product or process Help meet customer requirements for product or process

Non-value-added Consumes resources but don’t directly contribute to product or

process Don’t help meet customer requirements for product or process

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T.I.M.W.O.O.D – Seven “Deadly” Wastes

T Transportation

I Inventory

M Motion in Excess

W Waiting

O Overprocessing

O Overproduction

D Defects

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Six Sigma A management philosophy that promotes the obtainment of

meeting company objectives and exceeding customer requirements by addressing key business issues that effect both

A rigorous performance improvement approach A customer-focused, data driven approach to understand

process variation (stability) and process capability A universal problem solving technique (DMAIC) A performance target of 3.4 defects per million opportunities

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DMAIC – A Universal Problem Solving Methodology

D Define

M Measure

A Analyze

I Improve

C Control

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Lean6Sigma The Vision of Lean Six Sigma – Convergence of Lean

and Six Sigma to ensure all improvements in the process are considered

5S Workspace Organization

Visual Factory

Standardized Work

Kaizen

Kanban

The Goal:Continuous Eliminationof Waste and Reduction

of Variation

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Why Lean6Sigma? To better understand your business and potential

problems that prevent you from serving your customers

5S Workspace Organization

Visual Factory

Standardized Work

Kaizen

Kanban

The Goal:Continuous Eliminationof Waste and Reduction

of Variation

Use a kaizen approach for solving problems, “Go Fast”

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Make Lean6Sigma a part of the organizational culture

Project Selection and Prioritization Belt assignment based on project complexity Training based on project prioritization Training based on belt/project alignment

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Make Lean6Sigma a part of the organizational culture

Project Selection and Prioritization Involve your sponsors in project selection Identify and empower an individual in each functional area to

oversee project selection and implementation (“Y” Leader) Y = (x), (x), (x) (x), (x)

Align projects to corporate strategy Prioritize projects based on (VOC) and corporate strategy

alignment Determine the level of support needed to bring the project to

closure in a timely manner based on complexity

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Make Lean6Sigma a part of the organizational culture

Training Dedicated to increasing competencies for: Lean Novice Lean Experts Lean Masters Six Sigma Green Belts Six Sigma Black Belts Six Sigma Master Black Belts

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Make Lean6Sigma a part of the organizational culture

Create a Continuous Improvement Roadmap (Learning Platform)

Lean MasterLean MasterLean Expert Week 1

Lean Expert Week 1

Lean Six SigmaLean Six Sigma

Master Black Belt

Master Black BeltGreen BeltGreen Belt Black BeltBlack Belt

IL

IL

IL & On-Line

IL

IL & On-Line IL

ExpertComponentBasic Advanced

Lean Expert Week 2

Lean Expert Week 2

IL

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Make Lean6Sigma a part of the organizational culture

Belt assignment based on project complexity Local small projects – Green Belt (BB mentor assigned) Local large project/Organizational projects – Black Belt (MBB mentor

assigned) Enterprise wide projects – Master Black Belt

The key to being successful on any of the projects is strong

sponsorship

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Make Lean6Sigma a part of the organizational culture

Training based on project prioritization and belt/project alignment Based on types of projects and current pool of SS Belts, conduct

training to fill voids Train only as needed (remember, if application of the training does not

occur within a short time of the training, retention of the knowledge will greatly diminish

Provide support for the new belts through a mentor program and regular communication

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Make Lean6Sigma a part of the organizational culture

Using a “Go Fast” Methodology and involving your major stakeholders in your changes will increase you chances of success

Don’t let change manage you, you must manage the change to be able to be successful

QUESTIONS