June 17 th 2016 INTENTION WHAT YOU WILL GET Understanding of how - - PowerPoint PPT Presentation

Transforming Your Business Using Lean Six Sigma

June 17th 2016

INTENTION

• Understanding of how Lean Six Sigma can

accelerate performance and improve bottom line

• How the role of a BA provides a strong foundation

for Lean Six Sigma

• How to start a Lean Six Sigma journey

WHAT YOU WILL GET

What is one GOOD thing you have heard about Lean Six Sigma? What is one BAD thing you have heard about Lean Six Sigma?

WHAT HAVE YOU HEARD?

WHY LSS?

Increase revenue/ reduce budget gaps Do more with less Be flexible and agile

“In times of change the learners will inherit the earth while the learned will find themselves beautifully equipped to deal with a world that no longer exists.” Eric Hoffer

What LSS Can Do

Increased Customer and Employee Sa4sfac4on Lower Costs 90% Reduc4on in lead 4me 85% Reduc4on in inventory 75% Reduc4on in space u4liza4on 50% Produc4vity increase 85% Improvement in quality Increased Revenue

Lean in NYS Government

400 Projects 38 State Agencies 8500 Employees Participated 600 Lean Practitioners NYS DoS: Real estate license- reduction in wait times from 20d to 4d. NYS DoH: Reduction in wait times from 137d to 31d for HC facility

• perating certificate.

NYS DoL: Reinstatement of Unemployment Insurance from 42d to 10d NYS DMV: >50% reduction in wait times across processes.

Lean Six Sigma

With a Lean approach, we look for and minimize WASTE, anything that is stopping process steps from happening seamlessly. In Six Sigma we look for any places where VARIATION occurs, and minimize it.

DURING YOUR 91,000 HOURS, WOULD YOU LIKE TO…?

provide value, line up value creating actions in the best sequence, conduct (these) activities without interruption and whenever someone requests them, more and more effectively.”

“Lean Thinking” –James Womack and Daniel Jones, 1996

“Lean provides a way to and perform them

Key Lean Principles

• 1. Value

What customers are paying for

• 2. Flow

Continuous movement

• 3. Pull

Triggering flow from customer needs

• 4. Perfection

Never stop improving

Coffee Shop

• 1. Value

Which step are customers paying for?

• 2. Flow

What do we want to flow?

• 3. Pull

Don’t make what isn’t ordered

• 4. Perfection

Never stop improving

Order placed Order entered into register Beverage delivered Payment made Beverage made As a casual observer, what might you see as evidence that this coffee shop was not being run effectively?

The Eight Wastes

People

Underutilization/underdevelopment

• f people’s skills/talents

Defects

Incorrect information, data entry errors, failures, miscommunication, equipment failures.

Overproduction

Unused reports, extra copies of data, anything produced but not used

Overprocessing

Unnecessary approvals, sign offs, redundant data entry

Inventory

In process transactions, reports. Excess materials or supplies.

Waiting

For instructions, information, parts, forms, equipment

Motion

Unnecessary human movement, searching for items/information, awkward

• r repetitive movements

Transportation

Unnecessary movement of the ‘work’ in progress

The Eight Wastes

People

Underutilization/underdevelopment

• f people’s skills/talents

Overproduction

Unused reports, extra copies of data, anything produced but not used

Overprocessing

Unnecessary approvals, sign offs, redundant data entry

Inventory

In process transactions, reports. Excess materials or supplies.

Waiting

For instructions, information, parts, forms, equipment

Motion

Unnecessary human movement, searching for items/information, awkward

• r repetitive movements

Transportation

Unnecessary movement of the ‘work’ in progress

Defects

Wrong drinks delivered, inconsistent quality

The Eight Wastes

People

Underutilization/underdevelopment

• f people’s skills/talents

Overproduction

Unused reports, extra copies of data, anything produced but not used

Inventory

In process transactions, reports. Excess materials or supplies.

Waiting

For instructions, information, parts, forms, equipment

Motion

Unnecessary human movement, searching for items/information, awkward

• r repetitive movements

Transportation

Unnecessary movement of the ‘work’ in progress

Defects

Wrong drinks delivered, inconsistent quality

Overprocessing

Having to produce your receipt for your drink,

The Eight Wastes

People

Underutilization/underdevelopment

• f people’s skills/talents

Overproduction

Unused reports, extra copies of data, anything produced but not used

Inventory

In process transactions, reports. Excess materials or supplies.

Motion

Unnecessary human movement, searching for items/information, awkward

• r repetitive movements

Transportation

Unnecessary movement of the ‘work’ in progress

Defects

Wrong drinks delivered, inconsistent quality

Overprocessing

Having to produce your receipt for your drink, patterns on your coffee foam ;-)

Waiting

Long lines

The Eight Wastes

People

Underutilization/underdevelopment

• f people’s skills/talents

Overproduction

Unused reports, extra copies of data, anything produced but not used

Inventory

In process transactions, reports. Excess materials or supplies.

Transportation

Unnecessary movement of the ‘work’ in progress

Defects

Wrong drinks delivered, inconsistent quality

Overprocessing

Having to produce your receipt for your drink, patterns on your coffee foam ;-)

Waiting

Long lines

Motion

Employees moving around to fill orders, employees looking for needed items

The Eight Wastes

People

Underutilization/underdevelopment

• f people’s skills/talents

Overproduction

Unused reports, extra copies of data, anything produced but not used

Inventory

In process transactions, reports. Excess materials or supplies.

Defects

Wrong drinks delivered, inconsistent quality

Overprocessing

Having to produce your receipt for your drink, patterns on your coffee foam ;-)

Waiting

Long lines

Motion

Employees moving around to fill orders, employees looking for needed items

Transportation

Drinks being moved around

The Eight Wastes

People

Underutilization/underdevelopment

• f people’s skills/talents

Overproduction

Unused reports, extra copies of data, anything produced but not used

Defects

Wrong drinks delivered, inconsistent quality

Overprocessing

Having to produce your receipt for your drink, patterns on your coffee foam ;-)

Waiting

Long lines

Motion

Employees moving around to fill orders, employees looking for needed items

Transportation

Drinks being moved around

Inventory

Half made beverages sitting waiting, piles of order slips

The Eight Wastes

People

Underutilization/underdevelopment

• f people’s skills/talents

Defects

Wrong drinks delivered, inconsistent quality

Overprocessing

Having to produce your receipt for your drink, patterns on your coffee foam ;-)

Waiting

Long lines

Motion

Employees moving around to fill orders, employees looking for needed items

Transportation

Drinks being moved around

Inventory

Half made beverages sitting waiting, piles of order slips

Overproduction

Piles of pre-made beverages

The Eight Wastes

Defects

Wrong drinks delivered, inconsistent quality

Overprocessing

Having to produce your receipt for your drink, patterns on your coffee foam ;-)

Waiting

Long lines

Motion

Employees moving around to fill orders, employees looking for needed items

Transportation

Drinks being moved around

Inventory

Half made beverages sitting waiting, piles of order slips

Overproduction

Piles of pre-made beverages

People

Grumpy staff

Sources of Variation

No Visible Measurement/ Measurement System

Employees have no visibility

• f process performance

Voice of Customer

Weak specifications of customer requirement or demand

Paradigms/Habits

People locked into doing things a certain way because it’s always been done that way

Lack of Standardization

No SOP’s, no method consistency, no work standards

Lack of Training

Workers have not been trained to do the job

Worker Training Worker

Bad habits get passed along

Unforeseen Events

Breakdowns, accidents, absences, environmental conditions

Supplier Variation

Too much, too little, low quality, change in quality

THE TOOLS: Kaizen

• An accelerated team event aimed at rapid change.
• Get the necessary people and resources together to

make the change, lock them in a room, and don’t let them out until the change is done.

• Duration typically ranges from 1 – 5 days

MEASURE: Process Mapping

IMPROVE: The Toolbox

Con%nuous Improvement

Standardized Work Pull/ Kanban TPM Quick Changeover Mistake Proofing Value Stream (Process) Mapping One piece flow Teams POUS Visual Controls 5S Layout HOUSE OF LEAN

Serve the Customer

Average time to complaint resolution Reduce time by 10%

Run the Business Financial

Reduced technology downtime Robust financial systems Improved employee experience

Category Objec4ve KPI Tac4c Employees

KPI’s, Performance and Lean Six Sigma

Enhanced customer experience

Average TT of helpdesk tickets Reduce TT by 30% % error in monthly report Reduce errors by 50% Average time to fill open position Reduce time by 50%

IMPLEMENTATION TIMELINE

04

PROJECT 1

2 LEAN CHAMPIONS 8-10 TEAM MEMBERS

TIMELINE

Intro to Lean Training è è è è Lean Champion Development è è è è

PROJECT 2

2 LEAN CHAMPIONS 8-10 TEAM MEMBERS

Etc

Questions?

Next Steps

Identify some ‘products’ in your organization. Look for the wastes and variation in the processes that create that product Ask “What is possible if we reduce the waste and variation?”

Where Can You Go?

Demonstrated impact on KPIs through Lean Process improvement. Increasing value to customers/taxpayers while reducing effort. Well defined, robust, Continuous Improvement culture with shared language and approaches, seeing problems as opportunities. Enhancement of business analyst role to improve organization performance.

Thank you