LEAN SIX SIGMA September 11, 2019 Virtual Attendees - Make a note - - PowerPoint PPT Presentation

LEAN SIX SIGMA

September 11, 2019

Forms of Retirement Plans

• A. What is a “Defined Benefit” (DB) Retirement Plan?
• A form of retirement plan where retirement benefits can

be determined ahead of time and is based upon a known

• formula. Social Security, Military Pensions and the ASRS

are examples of Defined Benefit retirement plans.

• B. What is a “Defined Contribution” (DC) Retirement

Plan?

• A form of retirement plan where the retirement benefits

are not known ahead of time and are based upon contributions made, investment returns realized, and expenses paid. 401(k)s and IRAs are examples of Defined Contribution retirement plans.

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Virtual Attendees - Make a note of all letters

• Gain a deeper insight into Lean & Six Sigma
• Strengthen knowledge on the following continuous

improvement tools/techniques: – Process Mapping – Problem Solving – Standard Work

TRAINING RESULTS

• Definition: Methodology for process improvement and a

statistical concept that seeks to define the variation inherent in any process

• History:

– 1980: Bill Smith, considered to the the father of Six Sigma, and Bill Smith formulated concept in Motorola – 1983: Larry Bossidy of Allied Signal (now Honeywell) began implementation – 1995: Made popular by Jack Welch of General Electric; incorporated into all of their processes and managers were required to go through Six Sigma training

WHAT IS SIX SIGMA?

• Six Sigma (6σ) is a statistical representation for what many experts

call “perfect”

• In a 6σ process, there are only 3.4 defects per million opportunities,

which means 99.99966% of the products/services from a Six Sigma process are without defect

VARIATION/DEFECTS

Sigma Level Defect Rate Yield % 2σ 308,770 69.10000% 3σ 66,811 93,33000% 4σ 6,210 99.38000% 5σ 233 99.97700% 6σ 3.44 99.99966%

# of opportunities - # of defects

# of opportunities X 100 = Yield

Six Sigma Calculator

• Definition: Improving processes in order to maximize

customer value while minimizing waste

• History:

– 1798: Eli Whitney introduced his uniformity system (interchangeable parts) – 1913: Henry Ford began to integrate a flow production system with standard work to maximize production – 1930’s: Toyota revisited Ford’s concept and shifted the focus of individual machines to the flow of the product through the total process (Toyota Production System)

WHAT IS LEAN?

• Transportation: moving items or information
• Inventory: items/information that customer has not

received

• Motion: excessive movement within the workspace
• Waiting: waiting for information or items to arrive
• Overproduction: doing work before it is needed
• Overprocessing: doing more work than necessary
• Defects: mistakes or errors that need to be reworked
• Skills: not using workers to fullest of abilities

TYPES OF WASTE: TIMWOODS

[Waste Video]

Lean

• Improve process

efficiency

• Eliminate waste
• Focus on value for

customer

• Uses PDCA
• Continuous improvement

focused

SIMILARITIES & DIFFERENCES

Six Sigma

• Improve process

effectiveness

• Reduce variation/defects
• Focus on quality for the

customer

• Uses DMAIC
• Continuous improvement

focused

• Creates a culture that demands continuous improvement

and the long term pursuit of perfection

• Gives employees the tools to:
• Identify problems within processes
• Enables them to pinpoint performance gaps
• Make necessary improvements

WHY LEAN SIX SIGMA?

• 1. Clearly define the problem
• 2. Break down the problem
• 3. Identify the goal and set a target
• 4. Determine root cause
• 5. Develop countermeasures
• 6. Implement countermeasures
• 7. Check results
• 8. Standardize process

PROBLEM SOLVING METHODS

COMMON LEAN SIX SIGMA TOOLS & TECHNIQUES

Why focus on the process? Services we provide are created through processes

• f improvement opportunities are here

The other 15% lies in aligning organization goals and strategies

PROCESS MAPPING

85%

What Is a Process?

A series of actions or steps taken in order to achieve a particular end If you can’t explain what you are doing as a process, you don’t know what you are doing

1 2 3 4

• W. Edwards Deming

ALL WORK IS A PROCESS

• Provides a visual representation of how the work is

actually being done by staff

• Shows tasks/activities in a sequence
• Identified/clarifies roles & responsibilities

CURRENT STATE PROCESS MAPPING

Map the process of your getting to work every day Instructions:

1) Start with the book-ends (first action/step=get up; last action/step=arrive at work) 2) Using only one sticky per action/step, map your process to get to work

CURRENT STATE PROCESS MAP ACTIVITY 1 2 3 4

• Identify opportunities for improvement
• Streamline activities by removing unnecessary steps
• Eliminate redundancies
• Automate process (or a part of the process)

FUTURE STATE PROCESS MAP

Scenario: Late for work daily

Activity: Review your current state process map and determine what change/s you could try to make in order to get to work on time.

FUTURE STATE PROCESS MAP ACTIVITY

Toss the Ball Rules

• All members must stand and be at

least 1 arm’s length away from other members

• You must sit down after you have

tossed the ball

• The ball must be passed to everyone

in your group except the last person (who needs to just sit down after they catch the ball)

RAPID CYCLE PDCA ACTIVITY

INTENTIONAL FOCUSED EFFORT

Problem: Service tickets are not being completed timely Why are tickets not being completed timely?

ROOT CAUSE ANALYSIS EXAMPLE

Tickets are missing critical information (A) WHY? Too many tickets coming in for password changes (C) They are using old versions that do not have fields we need (B) They don’t know what to put on tickets They have not been trained They may not have the new form We have not trained them WHY? WHY? We have not developed the training WHY? We may not have sent it to them They may not be on our list We don’t always know who the assigned representatives are for the division or an agency The new system requires them to change their password every 90 days and they do not know how WHY? They don’t read the instructions on the website page on how to change it They don’t know where to find the instructions The instructions are a little hard to find They are buried within the FAQ’s page [5 Why Video]

ROOT CAUSE ANALYSIS ACTIVITY

Instructions: 1) Identify a problem that one of your small group members’ is currently experiencing, or select one of the problems below:

1. Monthly report is consistently being produced late 2. Organizations are not in compliance with financial requirements 3. Payments are not being processed timely 4. Errors in invoice payments (e.g. wrong amount, duplicate payments, etc.)

2) Complete the Root Cause Analysis Worksheet on the selected problem 3) Brainstorm a list of all possible countermeasures/solutions for each

• 1. High Impact / Low Difficulty

∙ Quick / less time to implement ∙ Low cost / few resources needed ∙ Few approvals needed

• 3. High Impact & High Difficulty

∙ Longer time to implement ∙ Higher cost / resources needed ∙ Higher level of approvals needed; statues, laws, rules, etc. could be involved

• 2. Low Impact & Low Difficulty

∙ Implement immediately (Just Do It!) ∙ No approvals needed ∙ No cost / resources needed

• 4. Low Impact and High Difficulty

∙ Hard to implement ∙ High cost / resources needed

High Low Low High

IMPACT DIFFICULTY

EVALUATION MATRIX

Purpose: Improves the quality and consistency of our work

1) Documents the steps and key points within the process in the most efficient manner possible 2) When followed, standard work allows improvement to be sustainable over time – with each improvement becoming part of the latest version of the “best known way” to complete the process/work 3) Can take the form of checklists, process flow diagrams, job breakdown sheets, or other formats determined by the team members 4) Used to confirm process adherence 5) Needs to be easily accessible to the team, and should include the “date” of the last revision.

STANDARD WORK

STANDARD WORK EXAMPLES

RESOURCES

• Lean Six Sigma Curriculum

The Council for Six Sigma Certification https://www.sixsigmacouncil.org/six-sigma-training- material/

• Six Sigma Calculator

https://www.isixsigma.com/process-sigma-calculator/

• Arizona Management System

https://ams.az.gov/

Questions/Reflections?

Plus (+)

TRAINING EVALUATION

Delta (-) What could be improved? What was unclear? What things were not so helpful? What’s missing? What worked? What did you like? What things were helpful?