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Copyright © 2014 Greenville Technical College All Rights Reserved

Chief Executives Boards International

National Summit April 25, 2014


Are You Getting Most Out of Your

Businesses & Processes?

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864-250-8063

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Chief Executive Board International

3

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What’s Changing

•Higher costs of doing business

•Clients expect more at lower cost

•More and changing rules, regulations and

requirements

•Capacity issues

•Staff shortages

•Having to do more with less

•Technology improvements

4


Your Situation

• What are the “internal” and “external” factors affecting your

organization?

• What is forcing you to change?

• What frustrates you about your work? What problems or

hassles do you encounter that make you less efficient?

• How are you currently approaching improvement?

5


Objectives

• Expose you

– Effective approaches

• Get you to see work with new eyes

• Expand your view of what’s possible

• Motivate you to find out more

• Give you tips you can use and things you can do

6


Agenda

• Summarize key improvement approaches

• Best practice management for improvement projects

and tasks

• More about approach called “Lean”

• Recognizing frequently missed waste

• What can you do? How can you get started?

7


What Do You Think?

• How many of you have ever built a house?

• How long did it take?

• What is the record for building a house, from pouring

concrete to putting in the lawn?

8


High Level Summary Key Improvement Approaches


Key Improvement Approaches

• Lean

• Six Sigma

• Constraint Management

• Complexity Reduction (less well known)

• Power of integration?

10

Well-Known


Focus and Strengths of Lean?

• Speed, capacity, and flexibility improvements through

elimination of waste and creation of flow – Flow priority: Focus on cash and work flow first; then focus on

information and people flows as support first two flows

– Provide work at “beat” of customer

• Does not mean elimination of people

• Biased towards quick actions: – Philosophy of experimentation (just try it)

– Visual, noticeable changes

• “Simple” problem solving methods

• Involving everyone, everyday in

eliminating wasted time and work

11


Focus of Constraint Management?

• Improve speed and capacity (throughput) of processes by: – Identifying, managing and improving bottleneck/constraint

– Subordinating all non-bottleneck steps to the pace of the

bottleneck/constraint

• Philosophies – Bottleneck/constraint limits output of entire process

– Minute lost at constraint or bottleneck is minute lost to system

– Minimize downtime

– Ensure constraint or bottleneck only processes good work

– Reduce changeovers

– Stagger workforce to run through lunch and breaks

– Buffer so is never starved for work

– Apply Lean or Six Sigma or both 12

Bottleneck/Constraint


Focus of Six Sigma?

• Good for solving chronic problems, reducing variation, and improving quality

• Powerful, rigorous, data-driven problem-solving and design approaches (e.g. DMAIC/DMADV)

• Data driven decisions and actions • Defines, trains and dedicates resources to drive improvement

and change through high impact, focused projects – Clear defined roles and responsibilities (BB, GB, champion,

process owner, top management, others) – Ideally highest potential employees trained as dedicated change

agents – From many sectors of the company (not just Quality Department)

• Ambitious goals – 100X quality improvement every two to three years – World-class quality goal: Six Sigma Quality level

• Voice of the customer central to improvements and projects

13

14 Copyright © 2014 Accenture All Rights Reserved

Lean Six Sigma

Roles and Responsibilities

Champion/Sponsor

Green Belt

Expert/ Master Black Belt

Team

Black Belt

Finance

Others?


Six Sigma Roles and Infrastructure

• Management support and leader roles

– Top Management

– Corporate Deployment Champion

– Department Champion/Sponsor

– Project Sponsor/Champion

– Process Owner/Value Stream Manager

• Process Improvement Experts/Facilitators/Team Members

– Master Black Belt

– Black Belt

– Green Belt – team members or project leaders

– Yellow Belt – team members

– Kaizen Event Leader

• Finance

15


Focus & Strength of Complexity

Reduction

Research indicates that product/service complexity (# of product/service offerings, components and/or processes) is often the greatest value destroyer and adder of cost to business

– Three Forms Product/Service Complexity:

• Offerings that add value in marketplace and earn adequate ROIC (profit)

• Offerings that add value but do not earn adequate ROIC (unprofitable)

• Features that are unseen by the customer (non value) but create internal complexity and cost to organization

– Often complexity goes undiagnosed and may causes an organization to close without knowing why

– Once identified, solutions include:

1) First, streamlining complexity (standardizing/commonizing components and lean Six Sigma) and

2) As a last resort after Step 1, reducing or eliminating unprofitable offerings (outsourcing or eliminating)

For more information see “Conquering

Complexity in Your Business” by

Michael George and Stephen Wilson


Why Lean Six Sigma

(+ Constraints + Complexity + ...)

• Best combination of tools available today to

simultaneously attack quality, productivity, speed and

cost

• Build on each others strengths and minimize

weaknesses

• Great way to execute business strategy through: – Rigorous project selection and focus on highest impact

projects

• Seize management attention – High impact projects

– Talks language of management ($)

17


Organizations Using

Lean Six Sigma

• GE – popularized Six Sigma

• Allied-Signal – refined it

• Other Manufacturers – Sealed Air, BMW, Caterpillar, Johnson & Johnson, Rockwell Automation, Boeing, Lockheed Martin, Dr. Pepper and many others large and small

• Military – Marine Corp., Navy, Army, Air Force

• Other government – DHEC, DoD, U.S. Mint

• Service – Starwood Hotels, PNC Bank, Net Bank, Starbucks, Staples, Hertz and many others

• Healthcare – Many hospitals; clinical labs

18


Examples of Success

• In one year, a division exceeded their profit goal by $2,000,000, grew

net profit by 15%, achieved 100% on-time schedule commitment, and

took their division from worst to first in the company

• Lumber company reduces defects by 43%, exceeding their goal of 25%

reduction, and saves over $90,000 per year

• Hospital had a 25% reduction in requisition to hire time for nurses from

almost 60 days to 45 days, exceeding their goal of a 10% improvement

• Manufacturer reduced changeover time from approximately 2 hours to

20 minutes saving $116,000 per year

• Manufacturer reduced number of component variations from 353 to 114

at a savings of approximately $350,000 per year

• Blood center virtually eliminated their stock outs on blood drives

• A business service company reduced % errors in responding to

customer needs by 85% resulting in $1.8 million per year in reduced

penalties

19


Which approach or approaches

• Problems and improvement opportunities can be

– Simple “go do it” improvements

– Medium complexity (2 weeks or less)

– Complex (2 weeks to months)

• Minimum Needs? – Lean

– Some type of Problem Solving method

• What is best? If you were to hire someone, who would you

want to hire?

• What should you call your improvement initiative?

– Whatever you do, what you call it will dictate whether it is “flavor

for month” or sustainable improvement

20


Critical Approach to

Successfully Managing

Improvement Projects & Tasks


Successful

Project or Task

Management

- SHORT ACTIVITY –


Learning Objectives

• How inadvertently guarantee costly and long

improvement projects

• Understand drivers of long project or task completion

times

• Food for thought …

• Provide immediate takeaways – Keys to successful project/task management

23


Exercise: Work Rules

• Work individually and quickly

• Maintain quality (normal signature)

• No breaks

• More important to work at consistent rate

• Don’t speed up over time

• Two (2) work periods

• Work content will essentially be the same

• When completed put your pen down

24


Activity Questions • What if the notes were projects, what does that show?

• What if instead of one paper (project) at time, worked on 5 or

10 simultaneously – What happens to one project when another is being worked on?

• What is management’s view of projects?

• What would be impact of:

– Giving or receiving more projects, without prioritizing

– Variation or problems with work content

– Changing priorities, firefighting

– Interruptions

• Other questions

25


How Apply 4 Resources on 8

Projects - Traditional

Project Resource

Months or Weeks or Days

1 2 3 4 5 6 7 8 9 10 11 12

1 Resource 1 $$$

after 8

Days,

Weeks

or

Months

2 Resource 1

3 Resource 2

4 Resource 2

5 Resource 3

6 Resource 3

7 Resource 4

8 Resource 4

26


How Apply 4 Resources on 8

Projects – Best Practice

Project Resource

Months or Weeks or Days

1 2 3 4 5 6 7 8 9 10 11 12

1 Resource 1 & 2 $$$

after 2

Days,

Weeks

or

Months

2 Resource 3 & 4

3 Resource 1 & 2

4 Resource 3 & 4

5 Resource 1 & 2

6 Resource 3 & 4

7 Resource 1 & 2

8 Resource 3 & 4

RateExit

PIPPLT PIP = Projects-in-Process Little’s Law &

Projects

27


Project Focus Summary

• More projects launched; more likely to take longer to get any one project done

• More projects given to any one person or team; more likely to take longer to get any one project done

and therefore

… more likely to become lower priority

… less likely to get done

… longer you will take to see return on project (if ever)

28


An Implementation Perspective

29

The most important things in any

improvement initiative is …

Focus …

Focus …

Focus …

Approximately 1 % of your business creates

50 % of your problems


Keys to Project Success

• Focus number of projects, tasks or activities the organization and

any one resource works on at once

• Focus … on “right” things, not everything

– Best, highest impact projects or improvements

– Establish right strategy and pick right improvement projects or tasks to

execute strategy as quickly as possible

• Focus … project “scope” to get project done in 3-6 months time or

less

– Otherwise, business needs change and people lose interest (team and

management) and project never gets done

– Maximize impact doing multi-generations of short time “chunk” projects

• Focus … on dedicating resources, time and best people

– On these most important projects to get them done as quickly as

possible

• Focus … on controls and monitoring to sustain gains

30


Solutions: If you want to complete

more projects in less time

1) Solution 1: Project launch must be based on resource

availability

• Projects constrained by availability of all required resources

• If recommend 2 projects per full-time change agent

– How many should a part-timer work on?

2) Solution 2: Reducing projects-in-process (PIP), can

generate results four times faster

• Counterintuitive: want to get more projects done, do fewer

• If you have to limit number of projects, which project or

projects should you work on?

3) Solution 3: Prioritize focus on highest value projects to

drive better results, faster

– Can still work on employee driven small improvements

– Based on strategy, customer needs 31


Tool to Track Resource Workload

and Availability


Real-life examples

• R&D group of 200 had 900 active projects in pipe-line and worked

on unknown number of proposals. Is it any surprise they exited only

5 projects that contributed to bottom-line in prior year? What would

be the average process lead time per project?

• One company had 100 employees and launched five team-based,

green belt projects. After one year, how many projects do you think

they completed?

– What they did that saved over $1.5 million

• Another organization was always 3-6 months late and over-budget

on all their capital projects

– What they did that saved over $1.2 million/year?

• Full-time improvement expert did eight projects over one year, one

at a time, doubling capacity

– What would have happened if he worked on all eight at once?

33


More About Lean


History of Lean:

Henry Ford Quotes

35

"Many people are busy trying to find better ways of doing

things that should not have to be done at all. There is no

progress in merely finding a better way to do a useless

thing."

Henry Ford

11/15/1922

"The competitor to be feared is one who never bothers

about you at all but goes on making his own business

better all the time."

Henry Ford

2/15/1923


History of Lean

• Lean has been around a long time

• Henry Ford and Ford Motor company in 1920’s pioneered early concepts of lean in use today – Wanted work to flow and never stop

– Excellent quality necessary if want work to flow

– Shorten order to cash time

– Constant, small improvements

• Took _________ to go from iron ore to Model T

• Problems with Ford Motor Company – No flexibility – You could have any color Ford you want as

long as it was _____

– Bought by Dupont and forever changed

36


History of Lean

• Toyota visited and learned from Ford Motor Company – Strapped for cash post-World War II

– Liked many of Ford’s concepts

• Toyota Production System came out of need for improved performance – Over 20 years to develop, in parts developed as counter-

measures to problems

• Toyota used concepts to become largest and most profitable car company in world – More importantly has become a benchmark for efficiency and

quality

• Toyota trained employees and suppliers in these methods – Concepts spread from there

– Now applied in every type of organization

37


Becoming Sector Specific

38

… and many other tailored applications of lean

• Lean accounting

• Lean construction

• Lean development

• Lean healthcare

• Lean hiring

• Lean government

• Lean logistics

• Lean manufacturing

• Lean project

management

• Lean design

• Lean purchasing

• Lean scheduling

• Lean supply chain


Focus and Strengths of Lean?

• Speed, capacity, and flexibility improvements through

elimination of waste and creation of flow – Flow priority: Focus on cash and work flow first; then focus on

information and people flows as support first two flows

– Provide work at “beat” of customer

• Does not mean elimination of people

• Biased towards quick actions: – Philosophy of experimentation (just try it)

– Visual, noticeable changes

• “Simple” problem solving methods

• Involving everyone, everyday in

eliminating wasted time and work

• Achieve “Lean Ideal State”

39


A Lean “Ideal State” Output of an ideal person, organization or process:

• Work at pace of customer

– Provide exactly product, service or work external or internal (next step) customer needs

– No more or less

• Error free; done right first time

• When needed, no earlier or later

– Responding quickly to changing requests

• Get each process to do and work on only what the next process needs, when it needs; linking all processes:

– In smooth, continuous flow

– Little or no wait time, detours, stops and interruptions

– Balanced and equal work

– That generates the shortest lead time, highest quality, and lowest cost

• Without waste

• At lowest cost

40


Improvement Starts by

Defining Your Ideal State

Where can’t meet ideal, have opportunity to improve

To drive improvement, always ask:

• What is your ideal state for your process or improvement?

• How can you break down the achievement of the desired state

into smaller step-improvements and goals?

• What actions will move you or your organization closer to the

ideal state?

41


Do You Use Lean Metrics?

Speed Measures:

Customer Lead Time

Process Lead Time (PLT)

Inventory and WIP

Process time (P/T)

Capacity Measures:

Exit Time/Exit Rate

Throughput or capacity

Takt time or takt rate

Process cycle efficiency or

process efficiency

Quality Measures:

% Good or %Yield

% Defects or Errors

Other typical measures

Others Inventory turns

Uptime or downtime

Overall Equipment

Effectiveness (OEE)

Changeover time/Setup Time

Lean accounting measures

Others 42


Value Stream Mapping

Batch Reduction

Involvement/ Cross- Training

TPM

5S & Visual Management

Work Layout Standard Work

Work Cells/Cellular Flow/One Work Quantity Flow

Pull/Kanban

POUS

Quick Changeover

Quality at Source

Mistake Proofing

Waste Identification & Elimination Change Management

Balanced Work

House of

Lean Improvement

Recognize or Use Lean Tools?

43


Why Lean?

• Estimated 60-80% of organization costs can be reduced

• 30-95% of work is considered “waste”

• Improves bottom-line: growing business and reducing

cost

– Through better performance and efficiency

• Organization and job survival depends on it

– Competition for your products and job can come from anywhere

• Who wouldn’t be interested in:

– _____ decrease in lead time

– _____ increase in capacity

– _____ quality improvement

– _____ reduction in inventory/WIP and _____ space reduction

44


45

Key Lean Concept:

Learn to identify work and

waste,

starting from point of view of

customer

• Focus on value as defined by customer

• Helps identify often hidden, massive

opportunities for improvement


Lean Helps Classify Work

To Focus Improvements

1) Customer value-added (CVA)

• Work that adds form, fit, function, or service on behalf of

customer

• Work that customer would be willing to pay you to do or

give you time to do

46


Lean Helps Classify Work

To Focus Improvements

2) Business Non-Value Added (BNVA) • Also known as Non-value Added Required (NVA-R) or

Business Value Added (BVA)

• Work needed to meet legal and regulatory requirements

• Work that if not done would prevent the organization from doing business effectively – Examples: payroll, sales, marketing, h.r., training

3) Non-value added • Everything that doesn’t fall into other two categories

• Lean helps us classify “waste” or “muda”

47

Where do we typically focus our

efforts? CVA, BVA, NVA?


Lean = Elimination of Wasted

Work/Time (Not People)

48

Value Added Non-Value Added

Typically 90-95% of

all lead time is non-

value added in an

organization that has

not applied lean!

Estimates indicate 60-

80% of costs can be

reduced through

WASTE ELIMINATION


VSM – Starting Point

49 © Lean Enterprise Institute (LEI) – Sample Value Stream map is used with permission from LEI


What is Waste?

• Known as “muda” or non-value added work

• Anything that adds cost or time to a product, work or

service without adding value

– Example: Things we don’t get money for

• Waste is a leading cause of unnecessarily slower,

inefficient, ineffective and costly processes

• Major contributor to lost capacity and long process

lead times and customer lead times • Even customer value added and business value added activities contain

lots of waste

50


The Problem:

Waste is often unseen!

51

First step to improvement is enhancing your

ability to see even tiniest bit of waste

You, your co-workers and customers feel impact of waste

Source of frustration and lost time

Results in workarounds

Problem: Waste often unseen to “untrained

Lean can help us recognize waste

Everything

looks good


Identifying and Remembering

9 Categories of Wastes

52


Identifying and Remembering

9 Categories of Wastes

53


Confusion Waste

• Employees unclear about

– Best or right way to do work

– Instructions or procedures

– What to do next and in what order

– Where to find/store items or work

– How much time they have to do work

• Missing information need to adequately do work

• Source of many errors and rework

• Source of wasted time and great frustration to

employees and customers

54


Overproduction Waste

• Sending more work or doing work earlier or faster than

can be handled by the next person or step

• As a result, the work __________

55


Excess Inventory and

Work-in-Process (WIP) Waste

• Excess Inventory - Having more of something than need or can immediately use or process; material inventory ties up cash

• WIP - Any type of work, item or person contained within or queuing in front of process

– WIP also known as Things-in-Process (TIP), Projects-in-Process (PIP), Patients-in-Process (PIP), and other terms

• More WIP and inventory, more waste

– Creates searching, tracking, motion, handling, picking up and putting down, and other issues

– Lean is about controlled inventory and WIP, not none

• Symptom of other problems

56


Waiting Waste

• Overproduction and WIP lead to waiting waste

• Biggest contributor to long process lead times

• Time is a valuable commodity in any office or work environment

• Anything (work, person, process, equipment) sitting or waiting to

be worked on or used, even for 1 minute is waste

– Do tolerate some employee wasted time, if it allows work to flow

through process faster

• Anything that causes work flow or employee flow to be

interrupted or stopped creates waiting waste

• Consider any idle time created when waiting for…?

– … material, information, instructions, people, task completion,

equipment, specimens, tests, supplies …

• What do you, other employees and your customers wait for?

57


Motion Waste

•Any extra or unnecessary movement of people or

machines that does not add value to the product or

service

•For frequently used items waste is – Any movement more than 3-5 feet (within reach of wingspan)

– Anything not stored at point-of-use or where needed

•Consider – How far do you walk or move to get something you need to do

your work? Others?

– How often do you pick up and put down work?

– How would you feel if during a medical emergency, doctor or

nurse had to leave the room to get a needed item?

58


Transport Waste

•Physically transporting or moving materials, work,

people, papers, or other items around the facility or

organization – Motion waste deals with motion of people or equipment; not

materials

• Consider: – How may times does an item or paperwork get picked up and

moved? How many feet does it travel?

– Have you ever been to a hospital? How far is a patient

transported around facility in a wheelchair or gurney?

59


Motion & Transport Waste

60

Unnecessary people or work movement

Copyright © 2014 Accenture All Rights Reserved

Spaghetti or Transport Map -

Motion and Transport Waste

Office Waste

Manufacturing Waste

61


Over-processing or Non-value

Added Processing Waste

• Unnecessary, extra, unproductive or inefficient work

or steps; duplication

• Work performed because that’s the way it has

always been done; workarounds

• Put more effort into product or

service than required or someone’s

willing to pay for

• Over-designing more into a service

or product or process

62

Please

approve.

Please

approve.

Please

approve.


Defects/Errors/Mistakes/

Rework Waste

• Not doing work right the first time

• Process fails to meet internal/external

requirements/expectations

• Results in negative outcomes:

– Extra re-processing or rework

– Scrap

– Customer dissatisfaction

– Wasted time

– Over-inspection and audits

• You can’t be fast if you have excessive quality problems and

mistakes – Lost time, speed, capacity, cost

• Good quality saves lots of $; poor quality often a “hidden

drain” on business $ 63


People/Skills/Idea/Human Talent

Waste

• Anything that reduces the full potential of employees

and their ideas

• Failure to create cross-trained and flexible workforce

• Failing to use or under-utilizing skills, knowledge,

abilities, creativity and ideas of all employees

– Failing to involve everyone in daily improvement

– Not asking staff that work in process how to improve

– Failing to use employee knowledge and experience

– Failing to improve your employees

– Lack of focus; No alignment of goals and objectives

• Who best understands and can improve process?

64


Wasted Human Talent

65

Waste: Not asking the staff that works the process how to improve

it & even to make the improvements themselves

I’ve made a few

changes to the

process.

Manager

Staff

Staff

Staff

I wish someone

would ask OUR

opinion…!

Staff

Staff


True Story:

Can You See the Waste?

• You arrive at airport 1 ½ hrs early for your flight; Plane arrives and boards one hour late

• Pre-flight checklist detects a repair request that was reported and supposed to be handled the night before, but wasn’t

• Plane waits 30 minutes at gate for maintenance to arrive

• Flight cannot be fixed and is cancelled

• All luggage and passengers are de-boarded

• Two gate agents are overloaded re-booking international and national travelers

– Before they can finish, they have to go load another plane and tell remaining passengers to go to another gate or exit the security area to get re-booked

– Other gate agents don’t want to deal with it because not their flight

66


True Story:

Can You See the Waste?

• One hour later, booking complete

• Wait for another two hours for next available flight, which

arrives 20 minutes late

• Arrive in connecting city and find re-booked ticket given was

never saved in system during re-booking rush, no seats are

available on overbooked flight

• Wait two hours for new flight

• Finally arrive at destination

• Luggage never left origination city

• Fill out lost luggage information, and luggage delivered next

afternoon

67


Attacking Waste

All work and processes,

even value-added ones,

contain waste

68

Remember, first step to becoming lean

is improving your ability to see even

tiniest bit of waste

What do you do after recognizing waste?


Options for Attacking

Wasted Steps/Tasks

1) Eliminate?

2) Simplify? Make easier to do?

3) Streamline? Do it faster?

4) Do in parallel (same time)? Or do ahead of time?

5) Standardize on best, most efficient way? Will

doing same way make us faster?

6) Improve any other way?

69


Where Do You Start


What Can You Do?

• Focus, focus, focus on your high impact improvement

opportunities

– Get them done as quickly as possible

• Become an expert in seeing and eliminating waste;

then train your employees

– Attack even smallest amount of waste

• Involve your employees in seeing and implementing

many small improvements, every day (more in

appendix)

– Smaller improvement ideas, the better

71


What Else Can You Do?

Observe

• Observe Work …Be Work

– Looking for nothing but waste

• Observe movement of one or more employees

• Identify interruptions to flow

• Evaluate process using 5P’s (see appendix)

• Do a waste walk analysis (see Appendix)

72



Get Educated

73

2secondlean.com

“Decoding DNA of Toyota Production System” by Spear and Bowman

“Must” reads

If want to know

more about

Lean Six Sigma

Written by CEO

for CEOs



• Create an ideal state vision for a process to better

help you identify opportunities for improvement

• What you name you improvement program matters

– Don’t call it Lean or Lean Six Sigma, make it general

• Implement standard work as a basis for sustainable

improvement and consistently effective operations

– No improvement is possible unless standard work is known

and followed

– Find and implement best known way to do a job (standard

work) and then make it better

• Hire a full-time expert or part-time consultant

74


“To improve is to change;

to be perfect

is to change often.”

Winston Churchill

What are you waiting for?

Even if you start small, start right away!

75


Contact Information

For questions or further information contact:

Marco Luzzatti, Lean Six Sigma Master Black Belt Train-the-Trainer

Corporate & Career Development Division – Greenville Technical College

Greenville, SC

864-250-8063 and [email protected]

• Corporate & Career Development is committed to providing the best

training for corporate, professional, and personal career development

• Over 400 companies and 22,000 students each year recognize Corporate

and Career Development as an innovative learning organization

• Our division does not work with college students, but provides training and

consulting for organizations, their employees and general public

• Training and services conducted with students from over 30 countries as

far away as Chile, England, Germany, Italy, Kuwait, Turkey, Vietnam

• Website: http://www.gvltec.edu/business-organization/

76


http://www.gvltec.edu/business-organization/




Other Training Provided

Lean Events & Training

• 5S

• Quick Changeover

• Value Stream Mapping

• A3 Problem Solving

• Easy Employee Idea Implementation

• Others

Other Services

• Lean Six Sigma

• Project Management

• ISO 9001 and other standard training

• Auditor and Lead Auditor

• Quality Tools

• Problem Solving

• Leadership/Supervisory

• Many others


Appendix

Engaging All Employees in Implementing

Sustainable Continuous Improvement Ideas


There are more wagon Pushers than Pullers

and they are critical to making progress.

How would employees and organizations benefit if everyone was working, every day on improvement?

Review

Those companies that can engage everyone

in improvement will outperform those who can’t

79


Types of Improvements

80

Organizations need lots of

bunts, not just home runs to

be successful!

Whole team needs to bat as

well!

• Most organizations fail to capture opportunities from small changes

• Successful companies tap into small improvements, not just medium and large to maximize results

In the U.S., do we focus on home runs or singles?


Good News or Bad News First?

• Bad news

– We hardly ever ask employees for their ideas

– When we do, we don’t give them time to implement

– Disappointed with lack of “big” ideas

• Good news

– People have lots of good ideas to share

– Can help people see waste and missed opportunities

81


Begin to think about square wheels

in your work area

• Simple improvement ideas

– Think eliminating waste, frustration, hassles

• Smaller and simpler is better

– Think saving seconds

– Easier to do with less risk

– Encourages experimentation

– More likely to get approved and done

– Employees may need coaching & encouragement

• Want ideas employee can implement themselves

with approval

– Need to give them time

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Goals

• Worker’s can eliminate hassles and frustrations

• Employees make improvements always known, but

could never implement

• Goal is NOT $, although that may be an outcome

• Create an improvement culture: “Thinking Culture”

– Change and improvement becomes way things are done

around here

• Engage, develop and motivate workers

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Imagine Power

Imagine power of involved employees

• Who constantly recognize waste and improvement opportunities

• Implement and share their solutions


Appendix

Process

Observation & Improvement

Questions


Work Observation & Simplification

Questioning Sequence

Questioning sequence used follows a well-established pattern which

examines:

• Why: Purpose for which the activities are undertaken,

• Where: Place at which the activities are undertaken,

• When: Sequence in which the activities are undertaken,

• Who: Person by whom the activities are undertaken, and

• How: Process/Means by which the activities are undertaken

with a view to:

– Eliminating,

– Combining,

– Rearranging, and/or

– Simplifying.

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The Purpose

• What is done?

• Why is it done?

• What else might be done?

• What should be done?

• Is the work or step value added, business non-value added or business value added, or non-value added (waste)

• If we eliminated job, step or work; would customer or anyone in the business care?

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The Place

• Where is it done? Where is it not done?

• Why is it done there? Where should it be done?

• Where else might it be done? Could we move it closer?

• Where is it stored? Do we need storage or storage area? Do we need to store that item? Could we move it out work area?

• Opportunity to redo layout?

• How can we minimize waste of motion and transport? Does task involve walking or moving to get something?

• Can we outsource? Can we do cheaper or better?

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The Sequence

• When is it done? When is it not done?

• Why is it done then?

• When might it be done? Can we change sequence?

• When should it be done?

• When is it scheduled? How is it prioritized? How do people know what to do next and by when?

• Where do inspections? Is there opportunity for full inspection?

• Can we do it while process is running (external) rather than while its down (internal)?

• Can we do it parallel rather than serially?

• Can we reorganize sequence around value streams and product/process families?

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The Person

• Who does it? Who doesn’t? Who else might do it?

• Why does that person do it? (in order to combine

wherever possible or rearrange the sequence of

operations for more effective results)

• Who should do it?

• Can we cross-train for flexibility?

• Is work evenly distributed? Opportunity to balance

work?

• If idle time, what do we want individual to do with idle

time (5S, replenish inventory, cross-train, problem

solving, waste elimination, team work, etc.)

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The Process/Means

• How is it done? Why is it done that way? (in order to simplify

operation) Why has it always been done this way?

• How else might it be done? How should it be done?

• Does it involve walking or moving to get something?

• Poor ergonomics? Poor safety?

• Errors? Can we make use of mistake or error proofing?

• Where is best place to do inspection and by who? Can we do full

inspection?

• Can we eliminate, combine, balance rearrange, or simplify work?

• Is done consistently and in currently best known, most efficient

manner (standard work)?

• Where do I deviate from or work around standard?

• Where are there disruptions or interruptions to work flow and what

can we do about it? 91


Copyright and Permission For Use:

Chief Executive Board International

92

These materials are the sole and exclusive property of Greenville

Technical College.

The contents hereof contain proprietary trade secrets that are the

private and confidential property of Greenville Technical College.

Unauthorized use, disclosure, or reproduction of any kind of any

material contained in this Manual is expressly prohibited. Any

unauthorized use of these materials for training is prohibited.

Members of Chief Executive Board International are authorized to

use this presentation for personal use and reference. Members

are also authorized to use material internally to train employees

within their companies. Materials cannot be shared with public;

non-member individuals or companies; or any training, consulting

or other competitors of Greenville Tech.


Contact Information

For questions or further information contact:

Marco Luzzatti, Lean Six Sigma Master Black Belt Train-the-Trainer

Corporate & Career Development Division – Greenville Technical College

Greenville, SC

864-250-8063 and [email protected]

• Corporate & Career Development is committed to providing the best

training for corporate, professional, and personal career development

• Over 400 companies and 22,000 students each year recognize Corporate

and Career Development as an innovative learning organization

• Our division does not work with college students, but provides training and

consulting for organizations, their employees and general public

• Training and services conducted with students from over 30 countries as

far away as Chile, England, Germany, Italy, Kuwait, Turkey, Vietnam

• Website: http://www.gvltec.edu/business-organization/

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