process improvement imagine the future. what is process improvement? better (quality) faster (more...
TRANSCRIPT
Process Improvement
Imagine the Future
What is Process Improvement?
Better (Quality) Faster (More Efficiency) Cost Effective
Profit (King) Savings Cost Avoidance
2Not to be reprinted without the expressed written permission by SSD Global, Inc.
What is A Process?
Renting a Car Enrolling in Class Washing your Clothes Getting Ready for Work
What are some business processes?
3Not to be reprinted without the expressed written permission by SSD Global, Inc.
It All Began
With TQM
Total Quality Management
History - Results
Industrial Revolution Challenges Autocratic
Scientific Era Famous Textile Studies
Not to be reprinted without the expressed written permission by SSD Global, Inc.
5
TQM
Process Making the Process Better (Quality)
People Statistical Models
Walter Andrew Shewhart W. Edwards Deming Joseph Moses Juran
Not to be reprinted without the expressed written permission by SSD Global, Inc.
6
1980s: A Better Way to Do Better
Lean Six Sigma ISO CMMI Kaizen
Originally its own process improvement program
Not to be reprinted without the expressed written permission by SSD Global, Inc.
7
Early 1990s
Models Could be Modified and Used for Service Lean Manufacturing became Lean Thinking Six Sigma became Six Sigma for Service
The Profit Factor Cost of Quality (COQ) had to make sense COPQ
Not to be reprinted without the expressed written permission by SSD Global, Inc.
8
Mid 1990s
Speed
Not to be reprinted without the expressed written permission by SSD Global, Inc.
Late 1990s
Birth of Lean Six Sigma
Not to be reprinted without the expressed written permission by SSD Global, Inc.
How Would You Apply PI?Student Exercise
Better, Faster, More Cost Effective? Cost Effective
Profit Savings Cost Avoidance
Industries Healthcare Education Finance
11Not to be reprinted without the expressed written permission by SSD Global, Inc.
What Methodology Should I Use?
If I Know the Solution – Basic Project Management
If I Don’t Know the Solution – a Process Improvement Methodology ISO, CMM, TQM … Lean Six Lean Six Sigma
Not to be reprinted without the expressed written permission by SSD Global, Inc.
12
Project Management (I Know or I Think I Know the Solution)
What is the Name of the Project? Who is My Sponsor? Project Overview Business Case Project Deliverables Scope
Take All this Information &
Make a Project Plan - WBS
Not to be reprinted without the expressed written permission by SSD Global, Inc.
13
Process Improvement (Don’t Know How to Fix – What Method?)
ISO
CMMI
Lean
Six Sigma
Lean Six SigmaNot to be reprinted without the expressed
written permission by SSD Global, Inc.14
Project Management (I Know or I Think I Know the Solution)
What is the Name of the Project? Who is My Sponsor? Project Overview Business Case Project Deliverables Scope
Not to be reprinted without the expressed written permission by SSD Global, Inc.
15
Why Lean Six Sigma?
Discussing All Improvement Methodologies Emphasis is on Lean Six Sigma:
35% of U.S. companies engage in some form of Six Sigma
53% of Fortune 500 Companies 82% of Fortune 100 CompaniesNote: Lean Makes Six Sigma Easier, More Robust
and Cheaper to Implement!
16Not to be reprinted without the expressed written permission by SSD Global, Inc.
All PI Programs Assume Basic PM is In Place
What is Basic Project Management?
What does a Project Manager Do? What is a PMP? Can You Be a Project Manager Without a PMP? What are some Examples of Projects?
17Not to be reprinted without the expressed written permission by SSD Global, Inc.
Review
All Process Improvement Programs are Designed to Do What?
Why Do Process Improvement Programs Assume PM is Already in Place?
Currently What is the Most Popular, Easiest to Implement and Cheapest PI program?
18Not to be reprinted without the expressed written permission by SSD Global, Inc.
Sigma Levels
One Way to Measure Process Improvement
What is Sigma ?
20
6Sigma Level Defective Items (PPM) Defective Items (%)
1 697,700 69.77 %
2 308,700 30.87 %
3 66,810 6.681 %
4 6,210 0.621 %
5 233 0.0233 %
6 3.4 0.00034 %
20Not to be reprinted without the expressed
written permission by SSD Global, Inc.
Different Six Sigma Levels ?
21
6If your water heater operated at Four Sigma, you would be without hot water more than 54 hours each year. At Six Sigma, you'd be without hot water for less than two minutes a year.
If your electricity operated at Four Sigma performance, your lights would be out 1.5 hours per week. At Six Sigma, you would be without lights about two seconds a week.
21Not to be reprinted without the expressed
written permission by SSD Global, Inc.
If You were a Patient?Sigma Level Defective Items (PPM) Defective Items (%)
1 697,700 69.77 %
2 308,700 30.87 %
3 66,810 6.681 %
4 6,210 0.621 %
5 233 0.0233 %
6 3.4 0.00034 %
22Not to be reprinted without the expressed written permission by SSD Global, Inc.
Why is Six Sigma accuracy important?
Because at 99% accuracy (4 Sigma):
• Two short or long landings at major airports each day
• 5,000 incorrect surgical procedures every week
• 20,000 lost articles of mail per hour
• No electricity for almost 7 hours each month
• At least 200,000 wrong drug prescriptions each year
• 50 dropped newborn babies each day
Source: American Society for Quality23Not to be reprinted without the expressed
written permission by SSD Global, Inc.
Six Sigma – Reducing Mistakes
Six Sigma strives for defect reduction, process improvement and customer satisfaction and is based on "statistical thinking"
Everything is a process All processes have inherent variability Data is used to understand the variability and
drive process improvement decisions
24Not to be reprinted without the expressed written permission by SSD Global, Inc.
Six Sigma and LSS Support the DMAIC Model
Not to be reprinted without the expressed written permission by SSD Global, Inc.
25
Process Improvement Program
Lean Thinking
Lean Manufacturing
Lean Manufacturing Now Lean Thinking – Reducing Waste
"Lean" comes from the ability to achieve more with less resource, by eliminating waste
Based on TQM theory First Popularized by Manufacturing (Toyota)
after WWII Now Used in All industries Promotes how to Recognize Hidden Waste
27Not to be reprinted without the expressed written permission by SSD Global, Inc.
Exercise
Tim Woods
Knowledge of How Well You Reduce Mistakes, Minimize Waste and Use the LSS Models is based on Martial Arts
Not to be reprinted without the expressed written permission by SSD Global, Inc.
29
Six Sigma Designations
White Belt – an orientation Yellow Belt – an overview Green Belt – classroom training, completion
of projects with the help of a black belt Black Belt – more intensive training, can run
a project and manage green belts Master Black Belt – Trainer, mentor,
supervises Black Belts
30Not to be reprinted without the expressed written permission by SSD Global, Inc.
Lean Six Sigma Summary
Lean Six Sigma is a systematic approach designed to eliminate defects and reduce waste
It typically uses the DMAIC model Each step in the DMAIC model is accompanied by
statistical and analytical problem solving tools. Lean Six Sigma uses martial arts designations to
determine various levels of expertise Students who use Six Sigma also use Advanced
Excel, MS-Project, Intermediate PowerPoint and Microsoft Visio, Minitab, QI Macros
31Not to be reprinted without the expressed written permission by SSD Global, Inc.
The Famous
Tree Swing Example
What Marketing Suggested
What Management Approved
What Engineering Designed
What Was Manufactured
What Maintenance Installed
What the Customer Wanted
DMAIC
The Flagship Model
Not to be reprinted without the expressed written permission by SSD Global, Inc.
The Basic Six Sigma Model 6
Define Measure Analyze Improve Control
40
DMAIC Models
Not to be reprinted without the expressed written permission by SSD Global, Inc.
41
DMAIC Models – Some are Simple
Not to be reprinted without the expressed written permission by SSD Global, Inc.
42
DMAIC Models – Some are Complex Looking
Not to be reprinted without the expressed written permission by SSD Global, Inc.
43