Lean Six Sigma Approved for Public Release. Lean Six Sigma 2 Overview What is Lean Six Sigma? What can Lean Six Sigma do? How to get started Approved

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  • Slide 1
  • Lean Six Sigma Approved for Public Release
  • Slide 2
  • Lean Six Sigma 2 Overview What is Lean Six Sigma? What can Lean Six Sigma do? How to get started Approved for Public Release
  • Slide 3
  • Lean Six Sigma 3 Paths to Cost Reduction Cut services Reduce labor (lay-off) Contract work out Eliminate product features Remove roadblocks so your employees can produce Assign resources to bottlenecks Maximize internal capabilities Focus on what the customer wants to buy Approved for Public Release
  • Slide 4
  • Lean Six Sigma 4 What is Lean Six Sigma? Combined 2 industry concepts: Lean Six Sigma Combines problem solving tools: JIT - Pull 5S Value Stream Mapping VisualMgt. Kanban ANOVA Kaizen Setup Reduction DFSS Root Cause Analysis Hypothesis Testing DOE MSA SPC Approved for Public Release
  • Slide 5
  • Lean Six Sigma 5 Lean Focus on what is of VALUE to the customer Separate non-value added from value added Map the actions required to produce (value stream) Eliminate activities that do not move the product closer to its final form Make the remaining value added activities flow smoothly Produce only what customers need (pull) Continuous improvement Approved for Public Release
  • Slide 6
  • Lean Six Sigma 6 Which is the better airline ticket? Ticket A $500 round trip 6 hours 3 layovers Arriving in NYC Ticket B $650 round trip 3 hours 1 layover Arriving in Groton/New London Traveling to Groton, CT What does value mean to you? Approved for Public Release
  • Slide 7
  • Lean Six Sigma 7 Lean Philosophy Value More to value than just cost Defined by the ultimate customer Womack Voice of the Customer (VOC) Expressed in terms of A specific product A function or capability Questions What does the customer want to buy? What would they pay extra for? Focus on what is of VALUE to the customer Approved for Public Release
  • Slide 8
  • Lean Six Sigma 8 Types of Activities Value-Added Brings product closer to its final form Changes the form, fit or function An activity the customer is willing to pay for Non-Value-Added Does not contribute to bringing the product to its final form Doesnt improve the form, fit, or function of the product or service on the first pass through the process. An activity the customer is not willing to pay for Waste Separate non value added from value added Approved for Public Release
  • Slide 9
  • Lean Six Sigma 9 8 Types of Waste UNDER-UTILIZED SKILLS Steps are wasteful, people are valuable Approved for Public Release
  • Slide 10
  • Lean Six Sigma 10 (2) Tapped holes for lifting Lean Example Valve Manufacturing Objective: Reduce time to produce valves Solution: Revise process no temporary attachments Feet Legs Lifting Blocks Approved for Public Release
  • Slide 11
  • Lean Six Sigma 11 Lean Example Certification Package Not Required Redundant Review Mill Test Report Minimize Rework Approved for Public Release
  • Slide 12
  • Lean Six Sigma 12 Batch versus Continuous Flow Process A Process B Process C 10 Minutes 30+ Minutes for order of 10 Batch & Queue Processing Continuous Flow Process A Process B Process C 12 Minutes for order of 10 Approved for Public Release
  • Slide 13
  • Lean Approach Batch Dept 1 Dept 2 Dept 4 OUT DONE OUT IN DONE IN 4 3 12 Dept 3 Continuous Flow Batch processing has a direct impact on the total Work-in-Process From: NAVSEA VSA Training Approved for Public Release
  • Slide 14
  • Lean Six Sigma 14 Value-Added time is typically only a small percentage of the total time Lean Approach Time Broken Component Repaired Component Wait Transport Wait Set-up = Value Added Time = Non-Value-Added Time (WASTE) Machine Disassemble StartFinish Re-Install Remove From Ship From: NAVSEA VSA Training Approved for Public Release
  • Slide 15
  • Lean Six Sigma 15 Lean Approach From: NAVSEA VSA Training Date / Reference / Classification Overtype with Section Title Total Lead-time = 48 days Value added time = 315secs!!!! Date / Reference / Classification Overtype with Section Title -Total Leadtime = 48 days Value added time = 315secs!!!! - Approved for Public Release
  • Slide 16
  • Lean Six Sigma 16 Lean Approach Time Lean Focus Make all of the Value Stream visible Reduce or eliminate Non-Value- Added portions of the process Result: Large time savings Traditional Focus Improve Value-Added work steps Better tools, machines, instructions Result: Small time savings Amount of Time Eliminated Time savings have a direct impact on Cost Capacity Schedule Flexibility Resources Etc. LARGE amount Small of time saved From: NAVSEA VSA Training Approved for Public Release
  • Slide 17
  • Lean Six Sigma 17 Continuous Flow Traditional Thinking: Batch Productionlike a meandering stream with many stagnant pools, waterfalls, and eddies Doubling production rate means doubling resources Continuous Flow Thinking: Pipeline with fast-flowing product no stops, piles, or back-ups Doubling production rate means halving the time waiting Flow production was an even more valuable innovation of Henry Fords than his better-known mass production model. Approved for Public Release
  • Slide 18
  • Lean Six Sigma 18 How Does Lean Solve Problems? Focuses on what is of VALUE to the customer Understand customer expectations and requirements In terms of the what the product provides, not just the product itself Eliminates activities that do not move the product closer to its final form Reduces the 8 types of waste Creates continuous flow Approved for Public Release
  • Slide 19
  • Lean Six Sigma 19 Six Sigma Philosophy Reduce variation Y=f(X) Making decisions based on data Approved for Public Release
  • Slide 20
  • Lean Six Sigma 20 What is Six Sigma? Change in quality philosophies Traditional Goalpost Philosophy USL LSL Loss$$ Loss$$ Anything outside the specification limits represents quality losses OK Taguchi Philosophy USLLSL Any deviation from the target causes losses to society Loss$$ Loss$$ Loss Approved for Public Release
  • Slide 21
  • Lean Six Sigma 21 How Does Six Sigma Solve Problems? Practical Problem (Define/Measure) Statistical Problem (Analyze) Practical Solution (Control) Statistical Solution (Improve) Approved for Public Release
  • Slide 22
  • Lean Six Sigma 22 Six Sigma Example Practical Problem Pass rate for Technicial Exams was declining Statistical Problem Y=f(X) Y Scores XX Exam section Place of training How often skills are used (experience) Elapsed time since training Statistical Solution 3 sections of the exam are the highest trouble spots Experience is the most significant factor in passing Practical Solution Focus training on 3 areas for inexperienced technicians Approved for Public Release
  • Slide 23
  • Lean Six Sigma 23 What is Six Sigma? 99.99966% of values are within specifications USL LSL A 6 Process A 3 Process Approved for Public Release
  • Slide 24
  • Lean Six Sigma 24 Is Six Sigma Overkill? 20,000 lost articles of mail per hour 15 minutes of unsafe drinking water each day 5,000 incorrect surgical operations per week 2 short or long landings at most major airports each day 11 hours of no electricity per month 7 lost articles of mail per hour 1 minute of unsafe drinking water per 7 months 1.7 incorrect surgical operations per week 1 short or long landing every 5 years 1 hour of no electricity every 34 years 99.99966% (6 ) 99% (3.8 ) Approved for Public Release
  • Slide 25
  • Lean Six Sigma 25 Pipe Welding Quality Reduce concave & convex defects in pipe butt welds Convex Concave Experimented on the effects of: Purge pressure Starting point Weld segment overlap Intersegment temperature Welder technique Identified key factors to control and ones that had no effect Approved for Public Release
  • Slide 26
  • Lean Six Sigma 26 Effluent Discharge BeforeAfter Notice RequiredMonthsDays Time to assembleWeeksDays CostOverheadDirect/Defined FrustrationHighLow Approved for Public Release
  • Slide 27
  • Lean Six Sigma 27 Value Stream Mapping Tile Material Manufacturer Mapped the value stream Identified key constraints Implementing just go do its Identified specific resources needed to support 2 ships per year Approved for Public Release
  • Slide 28
  • Lean Six Sigma 28 Ways To Get To Six Sigma Identify critical inputs & control them Quantifiable management Measure performance Decisions based on data Approved for Public Release
  • Slide 29
  • Lean Six Sigma 29 Ways To Get To Six Sigma Type 1 Corrective Action Countermeasure Type 2 Corrective Action Flag SPC/SPM Empowered Operators Type 3 Corrective Action Inspection SPC/SPM Operators Not Empowered Standard Operating Procedure Warning Signal Used to Detect Defects SPC/SPM - Wallpaper Best Control Methods Approved for Public Release
  • Slide 30
  • Lean Six Sigma 30 But we arent mass production Look for repetition: Valve manufacturing Certification package review Pipe welding Effluent discharge Approved for Public Release
  • Slide 31
  • Lean Six Sigma 31 But we arent mass production Product Families Different products that follow the same steps Processes Repetitive tasks For a product For a service For just normal day to day activities If its not the first time, then there is a process. Approved for Public Release
  • Slide 32
  • Supplier Lean Outreach Approved for Public Release
  • Slide 33
  • Lean Six Sigma 33 Why Supplier Lean Outreach? Extend Lean and Six Sigma to suppliers Shipyard Labor 39% 30% Purchased Material 31% Government Material Block III (SSN787) Costs Approved for Public Release
  • Slide 34
  • Lean Six Sigma 34 Goal Conduct joint process improvement projects with VIRGINIA Class vendors to reduce defects, and cycle time via the application of Lean Six Sigma tools and techniques. Create a win-win between supplier and EB Tangible improvement Benefits both companies Funded for 2 projects/year Approved for Public Release
  • Slide 35
  • Lean Six Sigma 35 Methodology 1.Voice of the Customer All customers not just purchasing 2.Kick-off with Vendor Identify problems, issues, roadblocks 3.Value Stream Analysis & Development of Improvement Plan 4.Improvement Plan Execution and Follow-on Onsites Approved for Public Release
  • Slide 36
  • How To Get Started We all tend to concentrate on taking corrective actions that we know how to take, not necessarily concentrating on the problems we should correct and the actions needed to correct (them). - Eliyahu Goldratt Approved for Public Release
  • Slide 37
  • Lean Six Sigma 37 How To Get Started Involve the employees Examine the detailed process with them Empower them to make process changes to: Eliminate non-value-added steps Keep adding value continuously without interruptions Ask the right questions What can we do to save time? Not: What can we do to save money? Get to the root causes 5-Whys, etc. Approved for Public Release
  • Slide 38
  • Lean Six Sigma 38 How To Get Started Reduce work in process (WIP): WIP = Waiting = Longer lead times Delayed sales Increased expenses = Less Profit! Approved for Public Release
  • Slide 39
  • Lean Six Sigma 39 How To Get Started Books to read: Lean Thinking. Womack & Jones Lean Six Sigma: Combining Six Sigma Quality With Lean Speed. M. L. George Theory of Constraints. Goldratt The Goal. Goldratt Approved for Public Release
  • Slide 40
  • Lean Six Sigma 40 How To Get Started Communicate with Electric Boat Things you are doing Ask for clarification on our needs Voice of the Customer Approved for Public Release
  • Slide 41
  • Lean Six Sigma 41 Wrap - Up What is Lean Six Sigma? What can Lean Six Sigma do? How to get started Approved for Public Release

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