Transforming Your Business Using Lean Six Sigma June 17 th 2016
INTENTION WHAT YOU WILL GET • 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 HAVE YOU HEARD? What is one GOOD thing you have heard about Lean Six Sigma? What is one BAD thing you have heard about Lean Six Sigma?
WHY LSS? Increase revenue/ Do more with less Be flexible and agile reduce budget gaps “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 85% Improvement in quality 50% Produc4vity increase Increased Revenue 75% Reduc4on in Increased Customer and space u4liza4on Employee Sa4sfac4on 85% Reduc4on in Lower Costs inventory 90% Reduc4on in lead 4me
Lean in NYS Government NYS DoS: Real NYS DMV: >50% 600 38 estate license- reduction in wait Lean State reduction in wait times across Practitioners Agencies times from 20d to processes. 4d. NYS DoL: NYS DoH: Reduction in 8500 Reinstatement of 400 wait times from 137d to Employees Unemployment Projects 31d for HC facility Participated Insurance from operating certificate. 42d to 10d
Lean Six Sigma With a Lean approach, we look for and minimize In Six Sigma we look for WASTE , anything that is any places where stopping process steps VARIATION occurs, and from happening seamlessly. minimize it.
DURING YOUR 91,000 HOURS, WOULD YOU LIKE TO … ? provide value, “Lean provides a way to line up value creating actions in the best sequence, conduct (these) activities without interruption and whenever someone requests them, and perform them more and more effectively.” “Lean Thinking” –James Womack and Daniel Jones, 1996
Key Lean Principles 1. Value 2. Flow 3. Pull 4. Perfection What customers Continuous Triggering flow Never stop are paying for movement from customer improving needs
Coffee Shop Order entered Beverage Order Payment Beverage made placed into made delivered register 1. Value 3. Pull 2. Flow 4. Perfection Which step are Don’t make what What do we want Never stop customers isn’t ordered to flow? improving paying for? As a casual observer, what might you see as evidence that this coffee shop was not being run effectively?
The Eight Wastes Defects Incorrect information, data People entry errors, failures, miscommunication, Underutilization/underdevelopment equipment failures. of people’s skills/talents Overprocessing Overproduction Unnecessary approvals, Unused reports, extra sign offs, redundant data copies of data, anything entry produced but not used Inventory Waiting In process transactions, reports. Excess materials or supplies. For instructions, Motion information, parts, forms, Transportation Unnecessary human equipment movement, searching for Unnecessary movement of items/information, awkward the ‘work’ in progress or repetitive movements
The Eight Wastes Defects Wrong drinks delivered, People inconsistent quality Underutilization/underdevelopment of people’s skills/talents Overprocessing Overproduction Unnecessary approvals, Unused reports, extra sign offs, redundant data copies of data, anything entry produced but not used Inventory Waiting In process transactions, reports. Excess materials or supplies. For instructions, Motion information, parts, forms, Transportation Unnecessary human equipment movement, searching for Unnecessary movement of items/information, awkward the ‘work’ in progress or repetitive movements
The Eight Wastes Defects Wrong drinks delivered, People inconsistent quality Underutilization/underdevelopment of people’s skills/talents Overprocessing Overproduction Having to produce your Unused reports, extra receipt for your drink, copies of data, anything produced but not used Inventory Waiting In process transactions, reports. Excess materials or supplies. For instructions, Motion information, parts, forms, Transportation Unnecessary human equipment movement, searching for Unnecessary movement of items/information, awkward the ‘work’ in progress or repetitive movements
The Eight Wastes Defects Wrong drinks delivered, People inconsistent quality Underutilization/underdevelopment of people’s skills/talents Overprocessing Overproduction Having to produce your Unused reports, extra receipt for your drink, copies of data, anything patterns on your coffee produced but not used foam ;-) Inventory Waiting In process transactions, reports. Excess materials or supplies. Motion Long lines Transportation Unnecessary human movement, searching for Unnecessary movement of items/information, awkward the ‘work’ in progress or repetitive movements
The Eight Wastes Defects Wrong drinks delivered, People inconsistent quality Underutilization/underdevelopment of people’s skills/talents Overprocessing Overproduction Having to produce your Unused reports, extra receipt for your drink, copies of data, anything patterns on your coffee produced but not used foam ;-) Inventory Waiting In process transactions, reports. Excess materials or supplies. Long lines Motion Transportation Employees moving around to fill orders, employees Unnecessary movement of looking for needed items the ‘work’ in progress
The Eight Wastes Defects Wrong drinks delivered, People inconsistent quality Underutilization/underdevelopment of people’s skills/talents Overprocessing Overproduction Having to produce your Unused reports, extra receipt for your drink, copies of data, anything patterns on your coffee produced but not used foam ;-) Inventory Waiting In process transactions, reports. Excess materials or supplies. Long lines Motion Transportation Employees moving around to fill orders, employees Drinks being moved looking for needed items around
The Eight Wastes Defects Wrong drinks delivered, People inconsistent quality Underutilization/underdevelopment of people’s skills/talents Overprocessing Overproduction Having to produce your Unused reports, extra receipt for your drink, copies of data, anything patterns on your coffee produced but not used foam ;-) Inventory Waiting Half made beverages sitting waiting, piles of order slips Long lines Motion Transportation Employees moving around to fill orders, employees Drinks being moved looking for needed items around
The Eight Wastes Defects Wrong drinks delivered, People inconsistent quality Underutilization/underdevelopment of people’s skills/talents Overprocessing Overproduction Having to produce your Piles of pre-made receipt for your drink, beverages patterns on your coffee foam ;-) Inventory Waiting Half made beverages sitting waiting, piles of order slips Long lines Motion Transportation Employees moving around to fill orders, employees Drinks being moved looking for needed items around
The Eight Wastes Defects Wrong drinks delivered, inconsistent quality People Grumpy staff Overprocessing Overproduction Having to produce your Piles of pre-made receipt for your drink, beverages patterns on your coffee foam ;-) Inventory Waiting Half made beverages sitting waiting, piles of order slips Long lines Motion Transportation Employees moving around to fill orders, employees Drinks being moved looking for needed items around
Sources of Variation No Visible Measurement/ Supplier Variation Measurement System Too much, too little, low quality, change in quality Employees have no visibility of process performance Voice of Customer Unforeseen Events Weak specifications of customer requirement or demand Breakdowns, accidents, absences, Worker Training environmental conditions Worker Lack of Bad habits get passed along Standardization Paradigms/Habits No SOP ’ s, no method Lack of Training People locked into doing things a consistency, Workers have not been certain way because it ’ s always no work standards trained to do the job been done that way
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 Mistake Quick Visual Controls Proofing Changeover Standardized TPM POUS Value Work Stream One 5S (Process) Pull/ piece Teams Mapping Kanban Layout flow HOUSE OF LEAN �
KPI’s, Performance and Lean Six Sigma Category Serve the Run the Financial Employees Customer Business Objec4ve Reduced Enhanced Robust Improved technology customer financial employee downtime experience systems experience Average time to KPI Average TT of % error in Average time to complaint helpdesk tickets monthly report fill open position resolution Tac4c Reduce time by Reduce TT by Reduce errors Reduce time by 10% 30% by 50% 50%
IMPLEMENTATION TIMELINE Intro to Lean Training è è è è TIMELINE 04 PROJECT 1 PROJECT 2 Etc 2 LEAN CHAMPIONS 2 LEAN CHAMPIONS 8-10 TEAM MEMBERS 8-10 TEAM MEMBER S Lean Champion Development è è è è
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