Purpose-Based Lean Six Sigma Heather Goulet, Ph.D. Lean Six Sigma - PowerPoint PPT Presentation

Purpose-Based Lean Six Sigma Heather Goulet, Ph.D. Lean Six Sigma Manager, Doosan Bobcat 9/12/18

Starting with Purpose The purpose of this presentation is to: • Discuss Lean Six Sigma challenges and share Doosan Bobcat’s vision to address • Connect with purpose to addressing challenges • Encourage you to start with purpose when facing Lean Six Sigma challenges 2 Doosan Bobcat

Agenda • Introduction – Doosan Bobcat and Lean Six Sigma • Purpose – what is it? • Lean Six Sigma – connecting to purpose 3 Doosan Bobcat

Introduction – Doosan Bobcat • Started in North Dakota (1947) • Largest ND manufacturer • Three ND production facilities • 1000 dealerships worldwide Skid-Steer Loaders Compact Track Loaders Toolcat ™ Compact Excavators Mini Track Loaders Telehandlers 4 Doosan Bobcat

Introduction – Lean Six Sigma at Doosan Bobcat NA > 600 trained and/or certified belts across all functions • 50% Yellow • 37% Green • 13% Black, Master Black 3 levels of training facilitated internally • Yellow – lean, Kaizen focus • Green – DMAIC focus + Kaizen • Black – mentor/leadership focus + DMAIC + Kaizen 8 full-time staff dedicated to continuous improvement • Black Belts (4) – one at each ND site + Statesville, NC • Lean Promotions Agents (4) – 1-2 at each ND site 5 Doosan Bobcat

What is the WHY/Purpose of Lean Six Sigma? Lean Six Sigma WHAT/HOW/WHY: WHAT: efficiency gains, waste/variation reduction HOW: tools, belts, training WHY: ??? – what is the WHY/purpose of Lean Six Sigma? From https://startwithwhy.com/, Find Your Why (Simon Sinek) 6 Doosan Bobcat

Why Lean Six Sigma? From Kubiak, T.M., and Donald W. Benbow. The Certified Six Sigma Black Belt Handbook , 3rd ed. 2016. Milwaukee: ASQ Quality Press, “Lean Six Sigma is a fact-based, data-driven philosophy of improvement that values defect prevention over defect detection. It drives customer satisfaction and bottom- line results by reducing variation, waste and cycle time while promoting the use of work standardization and flow, thereby creating a competitive advantage. It applies anywhere variation and waste exist, and every employee should be involved .” • Why fact-based, data-driven? • Why defect prevention? • Why reduce variation, waste, cycle time? • Why standardize work? • Why should every employee be involved? • Why Lean Six Sigma? 7 Doosan Bobcat

Common Challenges with Lean Six Sigma • Organizational engagement – what is the benefit, why? • Training – what is the return, who needs it and at what level? • Using, following processes – takes too long, too cumbersome • Achieving results – quantifying, agreeing upon, documenting • Sustainment – results, training, overall program These questions are more easily answered with PURPOSE - the WHY behind Lean Six Sigma 8 Doosan Bobcat

Organizational Engagement 9 Doosan Bobcat

Organizational Engagement at Doosan Bobcat 2018+ LSS Acceleration 2012 – 2017 • Top-down commitment LSS Growth • Focus on execution, (pre-2012) results in all functions • KPIs (VP alignment, planning) • Prioritization LSS Start • Focus on certification • • Belt utilization Top-down support • LPMS* maturity • • Functional mentoring Focus on Lean • Belts throughout • LPMS* kick-off functions • Dedicated belts focused • Growth of training on projects programs • Training program development *LPMS = Lean Promotions Management System 10 Doosan Bobcat

Top-down Commitment – KPIs, Belt Selection 2017 “Current State” 2018+ “Future State” Certification % by function Role-based belts What is needed by role? • Yellow – lean, Kaizen focus • Green – DMAIC focus + Kaizen • Black – mentoring, project selection Commitment Why these individuals? Why each belt level? 11 Doosan Bobcat

Organizational Engagement – Benefit, Why? Why do we need organizational engagement? • This is an absolute requirement , unless failure is desired Why should the organization support Lean Six Sigma? • Results – measuring, managing, achieving • Employee development • Continuous improvement culture • Collaboration • Innovation 12 Doosan Bobcat

Training 13 Doosan Bobcat

Training and Certification at Doosan Bobcat Key Considerations Belt Levels • What belt levels are Black Belt (BB) • Lean/DMAIC/DMADV tools mastery needed to achieve desired • Kaizen, project leadership (DMAIC, DMADV) results? • Kaizen, project, tools coaching/mentoring • What training is needed to Green Belt (GB) appropriately equip belts? • Lean/DMAIC/DMADV tools application • Kaizen, project leadership (DMAIC, DMADV) • How do belts demonstrate effectiveness? Yellow Belt (YB) • • What is needed to support Lean/DMAIC fundamentals application • Kaizen execution (w/ coach) belts (mentoring, other)? Doosan Bobcat 14

Belt Strategy and Expectations Tied to Purpose • Yellow – lean, Kaizen focus (50%) • Green – DMAIC focus + Kaizen (37%) • Black – mentor/leadership focus + DMAIC + Kaizen (13%) Yellow Belt Certification: • Structure: Training + Kaizen execution with support of a coach/trainer • Training content: Lean, DMAIC fundamentals • Purpose: Kaizen execution (w/ a coach) + results 15 Doosan Bobcat

Belt Strategy and Expectations Tied to Purpose • Yellow – lean, Kaizen focus (50%) • Green – DMAIC focus + Kaizen (37%) • Black – mentor/leadership focus + DMAIC + Kaizen (13%) Green Belt Certification: • Structure: Training + Kaizen leadership + project leadership • Training content: DMAIC application and tools, project execution • Purpose: Project and Kaizen leadership + results 16 Doosan Bobcat

Belt Strategy and Expectations Tied to Purpose • Yellow – lean, Kaizen focus (50%) • Green – DMAIC focus + Kaizen (37%) • Black – mentor/leadership focus + DMAIC + Kaizen (13%) Black Belt Certification: • Structure: Training + Kaizen/project leadership + mentoring • Training content: mentoring, leadership, DMAIC in-depth (mastery) • Purpose: Project/Kaizen identification/leadership + mentoring + results Project selection 17 Doosan Bobcat

Training and Certification at Doosan Bobcat What is the return on certification and how is effectiveness demonstrated? • Yellow Belt return • During training = Kaizen results • Long-term = Kaizen results throughout functional areas • Green Belt return • During training = Project results • Long-term = Project/Kaizen results – “killing problems” • Black Belt return • During training = Project results • Long-term = functional project/Kaizen selection (tied to top objectives, KPIs), project/Kaizen results – “identifying and killing the right problems” Effectiveness demonstration: CERTIFICATION CRITERIA Doosan Bobcat 18

Using, Following Processes 19 Doosan Bobcat

Following Processes at Doosan Bobcat Current State – “takes too long”, “too cumbersome” DMAIC Project Deliverables DEFINE MEASURE ANALYZE IMPROVE CONTROL PHASES STOP STOP STOP STOP STOP Consolidate all Collect all data needed Analyze data collected to Implementation of key Ensure and track information that supports for executing the project. draw conclusions about improvements effectiveness & the need for this project. Build current state. root cause and potential sustainability. KEY OUTCOMES Define customer voice corrective actions. and requirements. Develop Future State. Project Charter Measurement Plan Opportunity Prioritization Idea Generation/Rating Updated Metrics • Pareto • Brainstorming Project Plan / Schedule Baseline Data Control Plan(s) • Primary/Secondary • Prioritization Matrix • 7 Ideas SIPOC:Current State Lessons Learned Metric • Reliability Target • Pugh Matrix Stakeholder Analysis Causal Analysis Project Savings Analysis (B Life) Recommended Tools • 5S Assessment • 5 Whys • PICK Chart Communication Plan Standard Work Required Tools • Fishbone Diagram • Affinity Diagram Resource Plan Current State Process Audit Plan(s) • Process Map/SIPOC • Screened/vital X's Is / Is Not Chart Future State Process Map Training Plan(s) Critical Cust. Requirements • Spaghetti Chart • FMEA Implementation Plan Statistical process control (SPC) (CCR) Future Continuous • Value Stream Map Control Charts Kaizen Event(s) Improvements Potential X's Correlation DOE (optimizing) Measurement System Analysis Regression Simulation Value Curves Defined Process Capability Improve Data Analysis ANOVA Tests of Statistical Significance Hypothesis Testing Quick Changeover DOE (screening) Project Deck Update Project Deck Update Project Deck Update Project Deck Update Project Deck Update Mentor Approval of CONTROL and Mentor Approval of DEFINE Mentor Approval of MEASURE Mentor Approval of ANALYZE Mentor Approval of IMPROVE Project Closure Tools in red are required; exception (not required) if a new process / product * Rev. 6/19/17 • Multiple locations for files • Multiple options for tools • PowerPoint used to “demonstrate” • Time-consuming • Confusing post-training 20 Doosan Bobcat