Vn Woe = é a : be = wiwalsny STIRS WHOIS RT wone[nulls - THAT LIA NAFAD (viskoyoy) pug ups Wz ‘Aq (nve9StE0 aVHHaa NOLLYHOAYOD J4ONVIWN dno, own > jouaquiaw HOV IVW poysag uolp.10d.109 ffoyojpy 10f pasvda.ig Aen Oyen Not Acordihpe sururery, VINDIS XIS NVAT Nowna: Zadar poss LSS = expen Dasari STVIUS.LVW ONINIVELLPucbnbilits - Cos t- Deveanne Prove wo ™ Favre Vrampowe f a \lavety et Premeares wk A % Contess CcSession Objectives * To familiarize with the DMAIC Methodology « To be able to understand roles in project Tollgates ¢ Understand each of the D - M-A-I-C project deliverables required during tollgates Participate in LSS Simulation Exercise to enable concepts of DMAIC understood in greater detail + Identify LSS Projects for Deployment 'MBizM Sdn Bd (Lean Sigma Experts Australia) Contents, Discussion & Workshop Tapics + Day 1 - Simulation - Quick Introductions & Ground Rules = Lean Six Sigma Recap / Introduction Lean Six Sigma Simulation - Round 1 - Define Phase Project Deliverables (D) = Measure Phase Project Deliverables (™) Lean Six Sigma Simulation - Round 2 Analyse Phase Project Deliverables (a) - Improve Phase Project Deliverables o - Lean Six Sigma Simulation - Round 3 - Control Phase Project Deliverables (c) ‘Mi Sdn Bh (Lean Sigma Experts Austrafia) 2{eaN sloma exrears AUSTRALIA Lean Six Sigma Introduction The Power to Drive Rapid and Sustained Value Creation Introduction (een tant 3 i [alt ad Please remember to ask questions and make notes! nay. 9 raowen. seeastRete ae Remgrtee ghar SESE [MBizm Sdn Bha (Lean Sigma Experts Australia)Six Sigma Terminology You can't manage what you can't measure * “Sigma” (oc) = Standard Deviation — Key measure of Variability — Emphasizes need to control both the average and variability ofa process * Six Sigma Quality ~ "Sigma Quality Level” (SQL) measure used to indicate how often defects are likely to occur ~ Six Sigma Quality = 3.4 Defects per Million Opportunities (DPMOs) 7 ee eee earner ‘Miz Sdn Bh (Lean Sigma Experts Ausirall Traditional Performance Paradigm * Inthe past, companies Shorter : ini diel Delivery believed a gain in one ual ; Times performance area required a trade off in one or more of the other dimensions. + For example, to decrease delivery time firms hired Barrier more expeditors, which drove t up costs, while product quality suffered in the rush to Costs get product out the door. ‘MBizM Sda hd (Lean Sigma Experts Australia)New Performance Paradigm * The new paradigm says a Shorter performance gain in one area fey requires or will result in performance gains in the other i y dimensions. + For example, achieving a Quality Costs sustainable decrease in delivery time requires that rework, scrap, and other inefficiencies be 4A4- ace eliminated in the production process, resulting in higher product quality and lower No Barrier production costs. [Miia Sdn Bhe (Lean Sigma Experts Austialia) <> The Lean Six Sigma Strategy cee To implement the new paradigm, companies turned to two major process improvement strategies ~ Lean and Six Sigma. aot + Lean focuses on reduced lead time and reduced costs. ‘Lean Focus: a Costs + Six Sigma focuses on improved quality and reduced costs. Lean Six Sigma combines the benefits and power of both strategies. Shorter Delivery Times IMBiaM Sein Bhd (Lean Sigma Experts Australi)® LEAN ica BxreaTs AUSTRALIA DMAIC Approach Lean Six Sigma Methodology Sor Lean Six Sigma Improvement Process Define the opportunity from both Define business and customer perspectives Understand the process and its Measure performance 5 Search 0 he hy factors era 9) that have the biggest impact on process Develop improvement aaa solutions for the critical X's APE Implement the solution Bi and control plan eet ass as Selection. Saree oa Pe auc IMoiaM Sdn dh (Lean Sigma Experts Austiato) as Tollgate A tT Communication Plan Stakeholder Analysis Translate VOC into Requirements Scope Clarification t[Plol¢ ge] Sl2 2/8/28 #is alFlelalg = Voice of the Customer and Voice of the Business ~ indi” MBiaN Sen Bh (Lean Sigma Experts Australia). ay ‘Sampling Strategy and Data Collection Plan ‘Minh Sdn Bn (Lean Sigma Experts Australia) Input | Process | cutput = Based on process and Y=t04) Validate Measurement SystemTaentity s Implement Quick Hits CRE Root Cause ———Analwsis__ of Variance joritize 1 X's and Root Causes fw ‘MeizM Sdn Bhd (Lean Sigma Experts Australia) BESTT) bo Di Determine Critical X's prix, Regression ‘Implementation Planni = =» Generate Solutions Idea Generation Techniques Failure Modes and Effects ‘Analysis (FMEA) ‘Simutation DOE ‘MBizi Sdn Bha (Lean Sigma Experts Australia) %Ongoing Measurement Documentation/ SOP's Process Control Plan enna ojolo Cte La) Putin @ = ToLLcaTE ells rn === Bian Sdn Bhd (Lean Si a Experts Australia) ae aca [eel Sut te) Pe NSOo Lean Six Sigma - Deployment Model Persons who verify + Determine Six Sigma strategy and performance of 6 sigma approve Projects projects + Advise Six Sigma strategy development and guide BB FEA « Six Sigma specialist + Guide Project, give GB training Black Belt » + Project leader Green Belt + Do their own job concurrently inderstand Six Sigma basically Yellow Belt + Understand the basics of, White Belt / All Executives & Employees 6Sigma Select talented core workforce and provide specialist training. Cc iH WEEN Sei Bhd TERan Sigs Experts Australis) Pome Lean Six Sigma - Deployment Model Green Belt Yellow Belt Black Belt Project Peele Project Limpacton$ | High Medium Low | 2M ‘the eee 8-12 months 4-6 months 1-2 months project | + Problem solving | (pMaIC) sae |" Team i 3. The nature of the | + Design new (DMA) | Members project product or process | * QCC Project «Process [+ Just do it (Pca) |__ Optimization’ 4.Thescope ofthe | Inter department | Inter / Intra Intra | project orcompany wide | department | department [Mia Sén Bhd (Lean Sigma Experts Australia) *General Deployment Structure | | Provide Svategicteadership, | | Progress assurance (through visibility), Cultural transformation shi ip ‘Select projects & appoint Project shampions Ei 4 ‘Support the Council a ocr eco (Eee nee eer perpen Coach and supportthe teamson abe LEAN SIGIR EXPERTS AUSTRALIA Lean Six Sigma Simulation — Round1 - Sounder Bottom LineRound 1 + There are two divisions of QS Finance ~ White Team (only if double simulation) Pink Team + Everyone has a different role, as outlined in the job description packets * Customers (Institutes) are located in the four corners of the room Instructions: + Read through your job descriptions + Setup your workspace + Follow your job descriptions + Follow the reporting relationships 7 + QS Finance is technology-free + Don’t change the process, we are establishing a baseline + Ifyou are “doubled up” you may not route to yourself Round 1 e ‘wii Sc Bhi (Lean Sigma Experts Australia) Round 1 * How do you think you did? * What are you basing this on? + What are some problems you see? + Was everybody busy? Where is the Work-in-Process? + Is there an opportunity for improvement? What were you focused on? Are the customers pleased? Round 1 What Data might support your conclusions? ‘MiBizM Sde Bh (Lean Sigma Experts Australia)EAN tanta Bp ERIS AUSTRALIA DMAIC DELIVERABLES Sounder Bottom Line Define Phase Deliverables eg e-w Oem e Q Drill Down Tree Te eR CE RN Q Pareto Charts O Project Charters Q) SIPOC: Supplier - Inputs - Process - Outputs - Customers QVOC: Voice of Customer Analysis & Kano Analysis IMBiaM Sdn Bhd (Lean Sigma Experts Austatia)Drill Down Tree Breaks down or ; Progressives a ae he Objective ig top: rtiti Smaller oe Froblem j into its pre Solem in "Miz Sdn Bha (Lean Sigma Experts Australi) Drill Down Tree Etrcmernrra’ Order received by phon! TE Se cee cucu cy | | Order received online | rer received by m mail ai | — |) Order received by fax | [Time Processing {1 am nine ee Let Order I] seat Time to enter order | "Average Time To || 7 | Process An Order] Time to check inventory) | Time to process payment | ‘Mii Sdn Bhd (Lean Sigma Experts Australia) ®Drill Down Tree — Workshop / Discussion Major Defects LSS Simulation Other Defects 'MBizM Sdn Bhd (Lean Sigma Experts Australi) Pareto Charts Pareto is a simple graphical technique for displaying data in a ranked format by category. It bases its principles on the theory that 80% of the data is usually represented by 20% of the categories. (The 80:20 rule). \ | ‘This theory allows us to make decisions on which | issue is causing us the most problem. This allows IMBiz Sdn Bhd (Lean Sigme Experts Australia) | us to make a big impact with any effort we put in. SSS SoS See eee eee eer CPareto Charts ‘count Pareto Chart of Errors Count Percent cum % Brancha Branch Branch BranchD 4 2 1 1 00 25.0 125 25 50.0 750 7s 200.0 (MBlzM Sdn Bha (Lean Sigma Experts Australia) @ LSS Simulation Major Defects Other Defects ‘vii Sdn Bhi (Lean Sigma Experts Australia)Project Charters Project Leader (BB/GB). Time to Implement Resources/Cost to imglement we ws IMBiaM Sdn Bhe (Lean Sigma Experts Aust Project Charters Imply causes + Itmay prevent the team from uncovering the real cause Criticize. Thatis, it does not state who is to blame « Ifyou attribute blame in the problem statement, it will most likely generate defensive behavior, hurting the team’s ability to collect and analyze data objectively ‘Suggest a solution ww * This solution may be wrong and send a project team down , a dead-end road on their journey ‘MBizM Sen Bha (Lean Sigma Experts Australia)Pareto Charts — Workshop / Discussions PROT] itggrn eee KEV ACTIONS [ESTIMATED SAVINGS / REVENUE ‘MEASURES / TARGETS / GOALS races Sart ccessSar*/ [People Needed to implement| Time to Implement SIPOC Suppliers Inputs Process Outputs | Customers [Requirements (See Below) Process Steps A c E ee See eee seed ‘Miz Séa Bh (Lean Sigma Experts Australia)SIPOC — Workshop / Discussions n QS FINANCE Suppliers Inputs Process Outputs | Customers [Requirements Process Steps A c E Ne [MBizM Sdn Bhd (Lean Sigma Experts Australia) VOC & Kano ~ Specific Need (CTQ) 7 [__ Answers given to customers C are correct. nowledgeat Customers" questions can Knowledgeable ‘be answered without further, research. |_. Researched information is roturned quickly. Good rien ‘Customer is greeted by name. Customer Friendly. ee : Service Customer isnot interrupted. ‘At Restaurant Short walt time iy General = Specific Hard to “design to” » Easy to “design to” pian Sdn Bhd (Lean Sigma Experts Australia) i© © VOC & Kano Absent Fully Implemented ‘Miz Sdn al (Lean Sigma Experts Australia) VOC & Kano - Workshop / Discussions THRESHOLD / (voc) PERFORMANCE EXCITEMENT —— = ‘Miizta Sin (Lean Sigma Experts Australia)Measure Phase Deliverables Q Process Map (Low Level) / Basic VSM Q Fishbone Diagram QO Data Collection Plan & Sheet “Veanasgua you te company Borg ts nok rope what bev ie Q Process Capability - Z Value Calculations (Sigma Level) QO FMEA for current process ‘MiiM Sdn Bhe (Lean Sigma Experts Australia) Process Maps / Basic VSM Receive course 7 eee Process Mapping Example - Course Registration | NO YES Choose classes. | 4__can i get signed in? Find out registration period ! NO | YES Can | register? ———+ | Register later YES T { | Receive | Register via NO, i Frat Gitzag| pHAIAsansnaasRRSERRSSRENG eae —\ schedule IMBi2Nt Sdn Ba (Lean Sigma Experts Australi)Fishbone Diagram Cts Bau Problem © 7 Man Machine Method % PC 3 4 %\ [PSC % PSC s PC &, € PC Environment Measurement Material | MBieM Sdn Bhd (Lean Sigma Experts Australia) Fishbone Diagram — Workshop / Discussions 'MaizM Sd Bh (Lean Sigma Experts Australia)Data Collection Plan & Sheet Example: Cycle time for loan application processing eek See te ena Ch MCR me aL Ln Ve moet ec er me ct ee CL Me Uc! i Peele em ead Timeto | Faxdate, | Loan Tim Smith| During the | Randomly | Type of loan processa | time | | applications Dave Mann] first week of ‘Amount of loan the month, loan application | Decision fax| Representative} 10/1/99 to | September) Dealer date time | fax center 10/7/99 ‘99 | Time of day Dayotweek | C (MBizM Sdn Bh (Lean Sigma Experts Australi) Review Data Collected from Round 1 - What / © other Information / Data Required? Data Collection - Workshop / Discussion & amen fice) conto. | sane IMBiaMt Sdn a (Lean Sigma Experts Australia) 6Process Capability - Z Value Calculations (Sigma Level) A Common Measure of Process Capability Is Sigma Quality Level GC DPMO’ Yield Sigma is the Greek letter and a — a GG OOa7e, ~— Statistical unit of measurement that 7 7 99.9997% describes the variability or spread of data 5 233 99.977% (the standard deviation of a population). 4 6,210 99.379% Six Sigma refers to a methodology of TooToo ae Continuous improvement where the goal 7 66,807 93.32% is to improve process performance to 2 308,537 69.2% — meet customers’ requirements. 1 690,000 31% Sigma Quality Level is a measure of process performance with respect to customer requirements. * Defects Per Million Opportunities a MBieM Sdn Bhd (Lean Sigma Experts Austraia) Sigma Level — Workshop / Discussions & How to Calculate Sigma Quality Level Using Discrete/Attribute Data? 1. Determine number of defect opportunities per unit O= 2. Determine number of units ne processed 3, Determine total number D= of defects made = 4. Calculate Defects ppo= _D__ per Opportunity Nxo 5. Calculate Yield Yield = (1-DPO) x 100 = 6. Look up the Sigma Quality Level using Sigma Table Process Sigma = IMBiaNt Sdn Bh (Lean Sigma Experts Australia)Sigma Level — Workshop / Discussions Sigma Quality Level Conversion Table orm ey 6.6% 934,000 0 ao% 920000 aa 1a0% 90900002 10% 89000003, 140% 86900004 160% 849000 05. 190% — g19q00 0s, 22.0% © 7800007 250% 75000008 20% © 0g 08 32.0% 690,000 1 350% 650000 3.0% © 6100012 20% © O13 46.0% = $40,000 14 spo% 0000015 seo% 6000015 sa0% = 000017 615% © 300018 55% © Seac0D 18 Yield 62.2% 5% 758% 718% aL. 942% 55% 55% 903% a9 93.3% 315% 355% 95.4% 97336 o77% 98.2% 935% 239% 99.2% Co 308,000 74000 242,000 ‘2.000 183.000 159,000 35.000 115,c00 96,800 0,g00 66,200 5400 44600 35900 23,700 22,700 7900 13900 10,700 8.190 2 aa 22 23 2a 25 28 27 28 23 2 ba 32 33 34 35 36 37 38 39 ‘Miz Sdn Bhd (Lean Sigma Experts Australia) 994% 6210 995% 4660 7% 3460 99.75% 2550 31% 1860 soem 1350 ssg0% 360 som a0 9995% 20 397% 330 99.97% 230 93995% 99.920% 93993% 99:996% 997% 52.9980% 9.9090% 99.9992% 93.5985% 99.99966% “6 4 4a 42 FMEA - Failure Modes and Effects Analysis Process of Making a Cup of Tea NJ Process | Failure | Failure | S|] causes ]O] Control | D | R | Action |s|o|o| x ° Mode | Effects | E c E| Pe E|cle| Pp v c tly vic|t|N 1 Bol [No Nowot |10| overpay | 3| Reminder 6 [180 [autopebic [10/3 [2 [60 Water | Power | Water Dill from TNB Supply No NoHot | 10 | Kettle 1 | None 10 | 100 | Backup to}1 [s|so Kettle | Water Leaking Kettle No No 10 | Neverpay |3|autoDebit | 2 | 60 ‘Water | Water bill System Supply Over Injury} 9 | Switch 2| Whistle 3 | 4s Bolled ‘malfunction IMaiaM Sdn Bhd (Lean Sigma Experts Australia)C FMEA —- Workshop / Discussions “ W] Froese [Faure] Fature [3] Causes [O] conver [OTR | Anion Ts]o]B]R 3 Wtode | enece | e 2 |e elelel ‘ é Fk welF|n dy 2 Ii Sdn ahd Leta Sgma fiers Astras) LEAN SIGMA EXPERTS Qs 7 AUSTRALIA Lean Six Sigma fi Simulation — Round2 — Sounder Bottom LineRound 2 * The team is allowed to make some incremental improvements 1. No customer changes 2. Headcount does not change 3. No new technology 4, Changes must be easily implemented and reversible - simple changes; no capital expenditures (e.g, rearranging furniture) =A Instructions: Mem + Employees to have a short & brainstorming session of possible quick hits e@ + Team agrees on FOUR changes (Workout!) + Facilitator must approve changes ; * You have 15 minutes before Round 2 begins Round 2 i ‘MBiM Sci Bhd (Lean Sigma Experts Australia) Round 2 * How do you think you did? + Were the improvements you made helpful? + Are there still problems? + What would you have done differently? + Do you have a sense of the overall process? * Who do you think does? + Are the customers pleased? IMBian Sdn Bha (Lean Sigma Experts Australia)EAN SIGMA EXPERTS AUSTRALIA DMAIC DELIVERABLES Sounder Bottom Line Analyse Phase Deliverables Analysis Paralysis Q Graphical Analysis over-analyzing (or over-thiniing) @ situation so that a decision or action is never taken. QO Statistical Analysis ~ Hypothesis, Correlation & Regression Analysis Q Value Analysis Q Root Cause Summary - Vital Factors & Action Plan tian Sa ahd (Lean Sigma Experts Asta} 6Graphical Analysis cael pana | He: etleaston dren. Shs Anova Tet for Egat This is just a snapshot, not covered in detail here but in Training Pomme ttt ho Equal Variance Toormete Yes Tao popne Onesway 2 Sample t ANOVA, ioenien equal ) Pedatie ice HEA Me aeatenalgciiet Bes TAS 2.snn : Kruskal-Wal Two emer: = Pepuitons fe: eat Go's iin, Sachetporanes Reales ~ [MBiaM Sdn Bhd (Lean Sigma Experts Australi) Graphical & Statistical Analysis Tools Hypothesis Testing eee “ro ppsaen Sia-Bas Sats reporton Continuous Digerete fi ‘Bata ‘Bala 2-Proportio worm Set HESES 28H Normality Test vston Chisgquare Non Normal Data a, oaaisrema Normal Data fatt SEEM atest semmuan THC a yoouuon i Testor Equal Variances Testfor Equal Variances C1 eat Deviation (Levene's Test) (FTestorBartotts Test) ‘2 22 Fz “ale ‘asuma eal wranca’ ‘one papuaen Seite BEPELE Bates dopey Oecipve 1 Sampiet te: tre ae SGsTURESE sangeet trone) issues ek ome” Gass vist tt SteCES ae a-SonaC Value Analysis Assessing Types of Tasks criteria: 1. Transforms the item or service toward completion 2. Customer cares (would be willing to pay for it) 3. Done right the first time _t°Non-Value Adding - Steps that do not qualify as Value , Adding or Enabling IMBizM Sdn Bhd (Lean Sigm Value Enabling - Steps that allow overall greater effectiveness or efficiency in the process USEFUL STUFF + Value Adding - Steps essential to deliver product or service according to customer requirements. Three Value Analysis Value Ade, Value Enabling, 10% * Transportation * Inventory * Motion * Waiting * Overprocessing * Overproduction * Defect ‘MBizM Sd Bhd (Lean Sigma Experts Austratio) ¢ Can you eliminate the step? + Can you simplify the step? * Can you combine it with another step?Value Analysis using Swimlane Diagram Swimlane - Process mapping is a visual tool to help understand the current process — in simplified terms it is a “Process Map with Data” It allows people to easily understand where waste exists in the process and provides a basis for prioritizing improvement efforts It gives process improvement teams a visual tool for representing their improvement ideas, so they are better able to communicate with people inside and outside the organization It is a key foundational Lean Six Sigma tool for improving processes 3 eee ‘MeizM Sdn Bhd (Lean Sigma Experts Australia} Swimlane — Workshop / Discussion A ‘Together with the Facilitators please draw out the entire Swimlane Diagram with Value Analysis =r |e om [le S@ Bo @ a ‘enter | Colom] [inex] f fia] free] ge [rmen] [ime] 7 [foe] aap B| EI} leg Identify oo A if improvement ao wey Eel] OL Actions relate Teen a vse @ GS] ] 1 that back to fae rem Tne by SS] = Fishbone toon Fete rote Pree ex ==} @ i [exbel rom rose LE] meme | © faim rete rite Bel oe om evr [Re- A mee @ emer] AE (ite fain) SHH [MBizM Sein Bhd (Lean Sigma Experts Australia) ‘és OGRoot Cause — Vital Factors & Action Plan its: Acti esp elalviolalaluly)~ ie Improve Phase Deliverables OQ Solution Selection Matrix Are you too busy to improve? Q “Should-Be” Process Map Cm) O Cost Benefit Analysis (CBA) Q Pilot Plan Q Solution Implementation Plan a Training / Communication Plan IMbiztt Sdn Bhd (Lean Sigmo Experts Australia) aSolution Selection Matrix Q Sources 3 Brainstorming — ] Generate ideas Best Practices <> for improvement | Ideas generated | | through benchmark | Le ‘Miz Sdn ahd (Lean Sigma Experts Australia) ee) Lean in Solutions The Inspection Exercise Count the number of es the 6th letter of the alphabet appears in the following tex The necessity of training farm hands for the first class farms in the fatherly handling of farm live stock is foremost in the eyes of the farm owners. Since the forefathers of the farm owners trained the farm hands for first class farms in the fatherly handling of farm live stock, the farm owners felt they should carry on with the family tradition of training farm hands of the first class farmers in the fatherly handling of farm live stock because they believe it is the basis of good fundamental farm management. IMBiaM Sd Bd (Lean Sigma Experts Australia}Lean in Solutions The Inspection Exercise Count the number of times the 6th letter of the alphabet appears in the following text: The necessity of training farm hands for the first class farms in the fatherly handling of farm live stock is foremost in the eyes of the farm owners. Since the forefathers of the farm owners trained the farm hands for first class farms in the fatherly handling of farm live stock, the farm owners felt they should carry on with Cc the family tradition of training farm hands of the first class farmers in the fatherly handling of farm live stock because they believe it is the basis of good fundamental farm management. [MBiaM Sdn Bhd (Lean Sigma Experts Australia) Solution Selection Matrix - Workshop @ Prioritise your solutions and Identify any Show Stoppers and how to overcome these? 29. Poka Yoke Card Error ‘Quota System IMBiabt Sdn Bhd (Lean Sigma Experts Australia) @Cost Benefit Analysis (CBA) ‘ibsttcom _DibenCaroontat@amal.cor IMBi2M Stn Ghd (Lean Sigma Experts Australia) Cost Benefit Analysis (CBA) = Cash flow improvements ~ reduction in the amount of cash tied up in inventory. Late receivables or early payables. Cost reductions ~ decrease in spending from prior year’s baseline spending, Costavoidance - Deferred or eliminated future expenses. ‘This expense has never occurred - there is no baseline spending. ‘Revenue enhancement~ Spenaayproesis | raised above its baseline level | in order to meet higher demands, | Capital avoidance - Deferred or} eliminated future capital. This | capital has been specifically | L| budgeted for the year or has been apart of the capital pla Achieved without large capital resources. Savings is based o1 baselines and gross margins. [MBieM Sen Bhd (Lean Sigma Experts Australia}CBA — Workshop / Discussions Pons Identify the potential Hard and Soft Saving, including areas for Revenue Generation in QS Finance. Explain how these savings can be materialised. ‘Mii Sch Bhd (Lean Sigma Experts Australia) Pilot Plans + Apilot is a test of a proposed solution. This type of test has the following properties: — Performed ona small scale ~ Used to evaluate both the solution and the implementation of the solution — Purpose is to make the full scale implementation more effective ~ Gives data about expected results and exposes issues in the implementation plan + The pilot should test both if the process meets our design specifications and the customer expectations. — Ina hotel check-in process, the design specification is a target 2 minute check-in time. ~ This corresponds with the customer's need for “quick check-in” _ Mink Sdn Bha (Lean Sigma Exparts Australla) eSolution implementation, Training / Communication Plans a great deal of time, energy, and enthusiasm typically accompanies the generation and evaluation of solutions + The selection of a few viable solutions marks a critical milestone for improvement teams ‘* Teams need to understand the implications associated with any proposed solution * You need support from management and operations that will be affected by the proposed improvement. cba Teams need to be able to explain and defend their proposed solutions to the business {The team needs to have a thorough understanding of exactly what they may | be recommending to management and the business. | Thoughtful and thorough consideration of the implications associated with ~ | the solution will help the team gain the support it needs from the business | leadership and from those whose daily work may be affected by the change. ee [Maia Sei Bha (Lean Sigma Experts Australia) LEAN sioua Boers AUSTRALIA Lean Six Sigma Simulation Round Pilot Sounder Bottom Line QO© Pilot Plans - Workshop (Pilot Round) Run the Pilot Round, Each Customer to send Two Forms Measure the Cycle Time and Defects 1. How do you think you did this round? 2. What were the improvements that made the biggest difference? 3. What else changed? @ 4. What did you hear from your @ customers? Round a Pilot us smu Sn oo ensue ie © AUSTRALIA Lean Six Sigma Ay Simulation ~~ Round3 - Sounder Bottom LineRound 3 + Poll Customers for Overall Performance Summary * Calculate the new process sigma as a whole group EAN SIGMA Berens AUSTRALIA ay DMAIC & DELIVERABLES Sounder Bottom LineControl Phase Deliverables PCRS Oa a ae SUL Panic Analysis Before & After Improvement |ii-——iii—l—h QO Updated FMEA Q Pilot and Replication Plan Q Implementation / Handover Plan Q Control Plan C, | Statistical Process Control (SPC) Q Dashboard Samples / SOPs / OPLs / Work Instructions ‘wiizM Scn Bhat (Lean Sigma Experts Australia} a Final Financial Benefits Calculations —_ ae before and after improvements Sere Cnty Coat fe Png Po nee uctonln® stot Spee Cote eee Auton, (MBiaMt Sdn Bhd (Lean Sigma Exnerts Austra) Ea oa cron bon sence ees fie ‘etae Mr_chgeControl Charts (SPC) WHAT IS STATISTICS? ‘miu eorerterXbar Char of Pre nprov¥s Post npro ‘Seay Report iistemenent rei rad $6 988 [Mesnecgecrnn woth oarior or enton! iepiansiansar easy | Couteseerne eu ae paar. Si 'MBieM Sdn Bhd (Lean Sigma Experts Australia) Dashboards & SOPs Allow teams to consume large amounts of 7 oats ; 5 BREA Mewcnnme information in a | ete Shanahan) sper ae! simple, graphical view. | | », s fmnce(te) yg Maancin) Enable management to monitor key performance indicators company- wide. Enable users to standardize on one common language 'MBizM Sdn Bhd (Lean Sigma Experts Australia)oN Supplementary 3 Notes Sounder Bottom Line Lean Six Sigma Implementation Program Initiation — Lean Six Sigma is a difficult journey for an organization. rf Create a sense of urgency. re — The compelling need or burning. platform has to be deeply roote and compelling to inspire an entire organization to move ina new direction. — A“C” leve] management must decide and devote time and commitment to Lean Six Sigma. Miz Sdn Bh (Lean Sigma Experts Australia)Lean Six Sigma Value Proposition Lean Six Sigma targets: — Continuous Improvement activities linked to ROIC — Maximizing ROIC through reduction in cost and capital — Revenue growth and economic profit to create value — Increasing quality and speed — Eliminating non value added costs Lean Six Sigma strategy to increase shareholder value : — Tactical execution of CEO’s and management's strategy — Drive the most basic business goals - customer satisfaction and waste reduction — Maximizing Customer Driven Value Added Activities MBizM Sdn Bhd (Lean Sigma Experts Australia) Lean Six Sigma Implementation Program Engaging the executive and management with P&L responsibilities + Ensuring immediate and continuous success of LSS Engaging the executives with commitment, making [SS asa strategic effort, Initiation Identifying a compelling need or burning platform to move from current state to future state in terms of speed, quality and cost. ‘MBiaM Sdn Bha (Lean Sigma Experts Australia) aValue Drivers Provide Starting Point for Identifying Opportunities 7 =a - = * Financial analysis drives to * Process performance links * Customer Needs provides tactical business processes to strategy, customer, and focus on crtcal customer financial levers. requirements and dives to * considers key enablers process performance. That span the processes, such 35 Voee of Assocites Economic Profit Revenue Growth Market Value Projects Aligned to Strategy and Priorities ‘Customer Issues / Opportunities Pero Captured and ees reels) ced Team Define project purpose and scope ‘Measure current performance ‘Analyze causes & confirm with data Improve by removing variation and non value-added activi Control gains by standardizing Sponsor inspects deliverables & checkpoints for each phase MBbieM Sdn Bhd (Lean Sigma Experts Australia)Lean Six Sigma Projects Selected to Drive Shareholder Value by Better Serving Customers, Reducing Cost and Reducing Capital Identity Value avers | dent ooect Sere nial Uist of Opportunities Opportuites Prone Uist of Defined TN ‘Transit Value Laver ito ‘Opportunity areas ‘Translate Opportunity Areas Inc roject eas * erluatprojects Brluaton Cera "Update Benet / tort + score ach projec igh Med /towfor Benefit and thon in eet ror ma Asin pons Sheree pltdcents | Breton orp i uae ‘efntion ssacrnenetproesy |, cpeorteter rts [Comet Dra Project analysis Lesa ‘Review potted resus * Prove projects + Schedule projec aunches barecon resource asia “Reduce Projects Process MBit Stn Bhd (Lean Sigma Experts Austral Tangible Results Come from Laser Focus on High Value Specific Project Opportunities Strategic Focus ROIC Opportunity. Area/Value Driver % ‘eet timrave Bete OF. ‘Becreae delivery tine variably { Maintain products — | Relentless RelucaTvelag ero ioe a] Customer [ acoso ely pres Ki Improve quality products |{ (Producers : rOcus. Proj #1 Treroeon gegen pore fF Proj #2 Tnoron ca eer pper teh Go ee | Cease Proj #3 support Tinpreva customer service repones tine bei See eee een Simpl preng options Improve selling process Sreanineqisedonprevas Go Black Belt project aera [MBiaM Sci Bh (Lean Sigma Experts Australia)Considering the Following Perspectives What Might the CEO of your company Strategy Include? Bch rak yg List some Key Process Metrics that might help enable this strategy IMBiaNt Sein Bhd (Lean Sigma Experts Australi) Lean Six Sigma Success Factors The “right” support The “right” project | The “right” roadmap Uae ican ty &tool [MBieM Sdn Bhd (Lean Sigma Experts Austra)