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1、Lean Six Sigma,Fundamentals Training,Classroom Logistics,SafetyExit routes and emergency procedures of the facilitySafety hazardsLogisticsLocation of restrooms,soda machines,LAN access,etc.Courtesy and RespectTurn off all cell phones and computers during classBe engaged and participative,TRAINING Ob
2、jectives,To provide participants with an awareness of:Lean Six SigmaLean Six Sigma PrinciplesKaizen Events,Lean Six Sigma(LSS),A systematic approach of identifying and eliminating non-value-added activities through continuous improvement.Built on the premise that the lowest cost and highest velocity
3、 is achieved when quality is at its highest.This includes quality of all business processes and services,not simply product quality.It maximizes employee involvement to solve problems and improve processes.Relentless focus on elimination of waste and creating greater customer value.,Producing what i
4、s needed,when it is needed,with right amount of materials,equipment,labor,and space,Lean Six Sigma(LSS),Why Lean Six Sigma(LSS)?,LSS focuses on customer value keeping us competitive in the long-term horizon.Effective LSS initiatives empower employees and build trust within the company.LSS provides a
5、 common sense approach to continuous improvement that focuses on waste elimination.LSS extends beyond manufacturing and is applied to all processes or functions.A successful LSS journey will have significant impact on an organizations performance.,Lean Six Sigma Philosophy,Too early,Too late,Deliver
6、y Time,Too early,Too late,Delivery Time,Defects Too late?Missed sales.Lost revenue,lost customers,DefectsToo early?Too much inventory on handAsset costs too high!,Rath&Strong,2000,Focus of LSS,The process equation is fundamental to Lean Six Sigma concepts and methods.It represents a process with“Y”a
7、s the outputs and“x”as the inputs.,The goal is to meet customer requirements.,To improve,we must understand the xs of our process.,Y,x,Y=f(x),OUTPUTS,INPUTS&PROCESSES,The Process Equation,Lean Six Sigma Results,Your Project Goal Move The“Y”Question:How Should The“Y”Move?,Project YExamplesCycle TimeQ
8、ualityCostDelivery Time,End of Project,Baseline Period,Kaizen&DMAICL,Project Life Cycle,Y,USL,Potential Impact of Lean Six Sigma,Inventory Reductions10-50%Free Up Floor Space10-50%Increase Turns30-100+%Productivity Gains12-50%Lead Times Cut30-70%Product Cycle Reduced15-40%,Benefits of Lean Six Sigma
9、,Eliminate waste dailyLearn by doingEncourage innovation keep stretch goalsWork toward zero defectsKnow and show baseline/current measurementsDrive step function improvementsContinuously improve dailyInvolve people early,Employee Expectations,Participate on LSS project teamsParticipate business proc
10、essesFollow pate in creation and/or deployment of common and support the companys common business processes,once implementedUse defined process modules and tools in day-to-day activitiesIncorporate Lean Six Sigma methodologyTraining for all employees over the next year on Lean Six Sigma Fundamentals
11、,Workplace Organization,Sifting,removing everything from your work place that is not required to do the job.Sorting,Establishing a semi-permanent location for all required objects in the workplace Sweeping and Washing,cleaning the workplace to eliminate all dirt and rubbish Spic and Span,The result
12、of the first three Ss Self Discipline,The most difficult of the Ss.Requires constant vigilance to maintain the accomplished levels of Spic and Span,5 S,Becoming Waste Conscious,The 7 Elements of Waste,Over production Correction Inventory Processing Conveyance Motion Waiting,Overproduction,Producing
13、goods at a rate faster than required or producing more than is required.Overproduction leads to increased levels of all other types of waste.,Correction,The quality of our product can only be as good as the quality of the worst component,(remember the RTY calculation).The waste in our process is mag
14、nified by the cost associated with correcting the defect as well as the costs associated by delaying further production while waiting for the correctionThe waste of correction is oftenamplified by overproduction.Notonly have we generated the mistakeonce,but unknowingly we have generated the same def
15、ectmultiple times.,Inventory,$,Inventory costs money.As we build excess inventory to accommodate problems in our process,the costs escalate.Safety stock levels are driven by downtime,quality problems,supplier delivery problems,line imbalances etc.Lowering the amount of in process inventory forces us
16、 to improve our processes.,Processing,Everything we do in our organization is part of a process.However We sometimes OVER PROCESS.We use systems and tools that are really the equivalent of using a surgeon to remove a splinter.Remember,resources cost money and when we over process,we use the organiza
17、tions resources that are not required.WASTING RESOURCES,Conveyance,$,$,$,$,$,$,$,$,$,EVERY TIME,you move a part,you add cost to that part.Unfortunately,the added cost does not translate to added value.We cannot charge our customer more because we have shuffled our products around the plant or around
18、 the world.We must MINIMIZE conveyance in order to preserve our product margins.,Motion,Waste of motion can occur in many forms.People moving to gather needed tools and components to perform their work.Movement of equipment that adds no value like machining“air cuts”,multi-spindle indexes etc.In mos
19、t cases,just recognizing the opportunity is the most difficult part of reducing this waste.,Waiting,We cannot wait in line anywhere without growing impatient.EXCEPT When we are at work.It is often with a sigh of relief that we accept a waiting period at work.Waiting for“batch produced”WIP from a pre
20、vious process.Waiting for a document from a previous department.Waiting for inventory(raw components)to be delivered etc All types of waiting cost$To minimize waste we must see out opportunities to eliminate the waste of waiting.Remember The waste of waiting is 100%waste,whenever it is identified th
21、e cost is reduced by ALL of the amount of wait time you have eliminated.,Adapted from Womack,J.P.and D.T.Jones,1996,Lean Thinking,Simon&Schuster.,Lean Six Sigma Principles,Specify value in the eyes of the customerIdentify the value stream and eliminate wasteMake value flow at the pull of the custome
22、rInvolve and empower employeesContinuously improve in pursuit of perfection,Lean Six Sigma Principle One,Defining ValueRecognizing ValueValue Add vs.Non-Value AddImportance of Value,ValueValue StreamFlow/PullEmpowermentPerfection,How Value is Defined,Value is definedby the end customer.to meet custo
23、mers needs at a specific price at a specific time.when expressed in terms of a specific product or service.To understand value,we must have dialogue with specific customers.,How to Recognize Value,Value is provided when a quality product or service is delivered that meets the customer requirements,w
24、ithin the customer response time,in the proper quantity,with minimal waste and at the right price.,Value Added vs.Non-Value Added Activity,Value-Added Activity:an activity that adds value from a customer perspective.Customer is willing to pay for activity or serviceThe activity physically transforms
25、 the product or service offeringActivity is performed correctly first time,Non-Value-Added Activity:Activities in a process or service that neither add value to a product or service,nor enable other value added activities.These activities take time,resources,and/or space,but do not add value to the
26、product or service from a customer perspective.Some of these activities are necessary and unavoidable,but nonetheless still considered waste.(e.g.Inspection),Value must be defined by the end customer.,Ingersoll Rand people are always value added.,Why focus on value?,Customers have choices in the mar
27、ketplace.Purchasing decisions are based on a combination of factors:PriceQualityDeliveryDurabilityBrandEtc.Global competitors look for the optimal combination of these factors to maximize customer value.If we fail to consistently focus on maximizing customer value,our share of the market will erode.
28、,ValueValue StreamFlow/PullEmpowermentPerfection,Lean Six Sigma Principle Two,Value StreamsWastesImportance of Focusing on InventoryValue Stream Mapping,CustomerValue,INFORMATION FLOW,PRODUCT/SERVICE MATERIAL FLOW,Finance,Market&Sales,Design,Order Entry,Suppliers,Sub Assy Mfg,Assembly,A Value Stream
29、,What is a value stream?,All the activities from customer order to cash.,The eight ways we waste,Transportation multiple handling,delay in material handling,unnecessary handlingInventory up or implementing employee ideas or suggestions.holding or purchasing unnecessary raw material,WIP and finished
30、goodsMotion actions of people or equipment that do not add valueWaiting time delays,idle time,non-value added timeOver-production producing over customer requirements,producing unnecessary materials/productsOver-processing unnecessary processing steps or work elements.ProceduresDefects producing a p
31、art that requires rework or is scrappedUnused Creativity not following,Employees and Waste,Waste is an activity.Employees are never considered waste.At times some wasteful activities are required until the current process can be improved.The intent of Lean Six Sigma is to redefine our processes so t
32、hat everyone spends more time on value added activities.This increases value to our customers as well as our own competitiveness in the global marketplace.,Importance of Focusing in Inventory,Inventory turns can be used to measure the velocity of a process.Other wastes usually result in excess inven
33、tory.As wastes are eliminated and inventory reduced,the velocity of the process will increase.This means higher value for our customers at a lower cost for Ingersoll Rand.,Inventory ExamplesRetained E-MailsUnprocessed OrdersPaperworkRaw Materials&PartsFinished GoodsQuotes Awaiting ApprovalJob Applic
34、ationsOpen Purchase OrdersUncommunicated Ideas,Inventory is a Key Lean Six Sigma Indicator,Manufacturing Process,Lead/,Cycle Time,Inventory/,Batch Size,100,50,0,Sea of Inventory/WIP,Poor,Scheduling,Line,Imbalance,Long,Transportation,Long,Setups,Defects,Inventory Hides Problems:Manufacturing Process,
35、Inventory is like a river,when water level is lowered,boulders must be dealt with,InvoicingProcess,Lead/,Cycle Time,Inventory/,WIP,100,50,0,Sea of Inventory/WIP,Waiting,Overload,Multiple,Approvals,Data,Streams,Errors,Inventory Hides Problems:Transactional Process,Inventory is like a river,when water
36、 level is lowered,boulders must be dealt with,Data/System,Invoice,One process istaking longer than the rest,Vacation scheduling.Poor synchronization.,Errors in data.Incomplete data.Wrong discount.,Gathering data takes too long.Inputting takes too long.,Sending forms from one location to the next for
37、 approval,Multiple,Value Stream of a Carton of Cola,Total Value Stream=324 daysValue add=3 hours,VA/NVA=0.04%,Current State,Future State,Ideal State,No Action,It is not uncommon to realize a 50-70%reduction in processing time!,Value Stream Mapping,324 Days Inventory3 Hours Processing,150 Days Invent
38、ory3 Hours Processing,15 Days Inventory3 Hours Processing,(where you are now),(3-6 month target),(all value,no waste),324 Days Inventory3 Hours Processing,ValueValue StreamFlow/PullEmpowermentPerfection,Lean Six Sigma Principle Three,Flow/Pull DefinitionPrinciplesExamplesPrerequisites,The progressiv
39、e achievement of tasks along the value stream so that a product proceeds from design to launch,order to delivery,and raw materials into the hands of the customer with no stoppages,scrap,or back flows.,What is Flow/Pull?,Before Flow,Only Value Added Steps/timeBalanced flowNo Scrap/ReworkNo Back Flows
40、 No StoppagesContinuous Flow,Flow/Pull Principles,Process A,Process B,Process C,Process D,Flow/Pull Principles Look at the Entire Process,Match Output Output to Customer Demand.Reduce Variation Within the Process.Identify Opportunities to Eliminate Waste.Balance the Line.Create a Continuous Flow.Uti
41、lize the Smallest,Cost Effective Quantity(Lot Size).,Ideal State:,Push vs.Flow/Pull Systems,Push systemresources are provided to the consumer based on forecasts or schedules.Flow/Pull systema method of controlling the flow of resources by replacing only what has been consumed.,Push System,Changes in
42、 DemandAll processes must be rescheduled simultaneously.,In a“Push”System upstream processes supply material as produced not necessarily as needed,Traditional“Push”System,Changes inDemand,Upstream,Downstream,Casting,Machining,Assembly,Final,Material Flow,Flow/Pull System,Changes in DemandContinual u
43、pdate of upstream processes with pull signals.,In a“Flow/Pull”System downstream process signal the need for,or pull material from upstream processes.,Lean“Flow/Pull”System,Changes inDemand,Upstream,Downstream,Casting,Machining,Assembly,Final,Material Flow,Pull Signals,Prerequisites for Flow/Pull Sys
44、tems,For JIT/Pull systems to be successful,other LSS Concepts are needed:Quality at the source(Zero defects)Poka-yoke(Fail safe tools and methods)Preventive maintenance(TPM)Good housekeeping(5S)Set-up time reduction(SMED)Waste eliminationFlow/Pull systems typically utilize some form of Kanban(visibl
45、e record),which is the fundamental activity control in a lean system,ValueValue StreamFlow/PullEmpowermentPerfection,Lean Six Sigma Principle Four,LSS CultureImportanceEmployees ResponsibilityBenefits to Employees,What a Lean Six Sigma Culture Looks Like,Everyone knows what the goals are for the pro
46、cess,leading to more alignment and better communications.Teams continuously monitor how well their process is performing towards the goals.Problems are identified within the process.Processes are managed visually;both in the factory and in the office.Process improvements can be initiated by anyone a
47、nd are happening all the time.People talk about eliminating wastes on a daily basis.More focus on process improvement versus disciplinary action.,Employees Responsibility for LSS,Work to achieve world class process performance in:Safety Quality Delivery CostBecome agents of changePrefer change over
48、failure to seek changeImplement radical change followed by continuous improvementGive ideas,look at what you doParticipate in LSS projects when requested,ALL EMPLOYEES,Benefits to Employees,LSS provides the following benefits for employees:Standardizes the way we work,thereby reducing conflict and i
49、ncreasing alignment with management.Allows employees to express and incorporate ideas on how to do their jobs better.Seeks to balance work between processes.Fosters a team environment and a sense of common purpose.Helps to ensure we have the proper tools to do our jobs.,Whats in it for me?,ValueValu
50、e StreamFlow/PullEmpowermentPerfection,Lean Six Sigma Principle Five,ExecutionProjectsKaizenDMAICLSustainment,Once a future state value stream map has been developed for a process,LSS projects must be completed to reduce waste and methods must be implemented to sustain the gains.,Lean Six Sigma Exec
