Introduction to

LEAN SIGMA

By : Sigit Gunawan

Lean Sigma Training Structure
Lean Sigma Definitions

Suatu metodologi sistematis yang membuat proses
lebih aman, baik, murah & cepat dengan cara
mengeliminir variasi proses serta menghilangkan
“non added value”
Reduce Steps and Process Variance with a
Customer Focus
 Lean :
 Focus on simplifying the process
 Elimination of non added value
 Reduction of waste (“muda”)
 Six Sigma :
 Focus on perfecting the process





Lean
The
Way
Reactive Problem Solving
Reactive Problem Solving
• React typically with a Quality initiative : TQM,
Zero Defects
• No observe the problems, defects
• Fewer customer complaints
• Jump to the conclusion

FIRE
Lean Sigma Efforts
PUT IT OUT !!!
CONTROL
DEFINE
MEASURE ANALYZE
IMPROVE
FIRE IS OUT
 FUTURE FIRES ARE PREVENTED
 CULTURAL CHANGES
Hard Work vs Smart Work
History of Lean
Lean Sigma Principles
1. Specify value in the eyes of the customer
• Tetapkan “value” apa yang diinginkan dari kacamata Pelanggan/User
• Misal prosenya harus cepat  reduce cycle time.

2. Identify the value stream; eliminate waste and variation
• Kenali “value stream” , hapus/kurangi “waste “ dan variasi yang tidak perlu
• Rangkaian aktifitas dari awal sampai akhir

3. Make value flow at the pull of the customer
• Pastikan prosesnya mengalir sesuai keinginan pelanggan
• Tidak terjadi stagnant/stopped/bottleneck


4. Involve, Align & Empower Employees
• Libatkan pekerja  team work

5. Continuously improve knowledge in pursuit of perfection
• Tingkatkan pengetahuan secara berkesinambungan

The Waste Categories
“ It is not removing waste that is difficult,
but it is seeing it ”
“The 8 Wastes”
efects
ver Production
aiting
ot Using People Well
ransportation
nventory
otion in Excess
xcess Processing
Non Added Value
The 8 Wastes = Non Added Value
The 8 Wastes = Non Added Value
The 8 Wastes = Non Added Value
The 8 Wastes = Non Added Value


• Fixed assignments, no cross-training
• Unbalanced workloads
• Inadequate training and performance
management system
• Not giving authority or encouragement to
improve the work processes and operating
procedure
• Not listening to or not following up on
employee’s suggestion or warnings
• Attempting to improve the work process
without the employee’s input
• Failing to align employees with the
company project or goals; “do as you’re
told and you’ll be OK
Not Using People Well
The 8 “Wastes” = Non Added Value
The 8 Wastes = Non Added Value
The 8 Wastes = Non Added Value
The 8 Wastes = Non Added Value
Example : Putting a New Well on
Production


● Dress Up
● Piping Hook Up
● Electrical & Instrumentation
Adding Value
Well POP
Drilling Rig
Leave Location
Rework =
Waste
Rework
Input Process Output Diagram
Laying the Project Foundation – IPO Diagrams
Define
Measure
Analyze
Improve
Control
Stepping Through DMAIC
1. Define
• Who are your costumers for the assigned project?
• What is the business case?
• What are the major steps in the process?
• How have you prioritized improvement opportunities?
• Who are the stakeholders in the process?
• Who are the team members working on these improvements?
• What are the goals and timeline for the project?
• Is this an opportunity for a Kaizen?

2. Measure
• What is the current state of the process?
• How is the process measured?
• What is the baseline for the key Performance metrics?
• What is the Cost of Poor Quality?

3. Analyze
• What type of waste are apparent in the process?
• What are the sources of problem? Root causes?
• What would a benchmark or “world class” process look like?

Stepping Through DMAIC
1. Improve
• How can we remove the cause of the waste?
• What is the of improvements to be made?
• Is there a risk in implementing them?
• What is the performance of the improved process?
• Did meet your goal?

2. Control
• How will you sustain the improvement?
• What is the benefit from the improved process?
• Is it documented?
• Has the team been rewarded?

Basic IPO Format
A combination of
Inputs to achieve
desired Output
Process
Inputs
Outputs
Manpower
Machines
Materials
Methods
Measurement
Mother-nature
Performance

Cost

Time

Safer
Bread Manufacturing
Bread Manufacture
Process
Inputs
Outputs
Materials
Bakers
Ovens
Mixers
Recipes
SOPs
Volume
(loaves/day)

Profit ($/day)

Scarp
(%/day)

Returns
(loaves/day)
IPO examples …. What’s wrong?
Publishing
Equipment
SOPs
Workers
Raw Materials
Errors (#/page)
SOPs
Product Line
Costumer
Relationship
Pricing Policy
Manpower
Training
Distribution
Payment Policy
Incentive System
Sales
Market Share
Profit Margin
Sales Person
Meet Customer
Requirements
Cycle Time
Sales Volume
# of Defects

Cara membuat diagram SIPOC
1. Gambarkan dan diskusikan. Siapa Customer
kita? User dari product atau Services yang kita
hasilkan?

2. Proses apa yang menjadi fokus untuk kita
perbaiki?

3. Value atau input apa yang menjadi keinginan
Customer?

4. Input apa saja yang mempengaruhi proses dan
terutama output?

5. Siapa Supplier yang memberikan input?

Contoh diagram SIPOC Marketing Bank

Supplier Output Process Input Customer
Nasabah

CEO/
Management

Bank
Indonesia
Finance

Operation

Marketing

IT

HRD
Budget

Skill

Produk

Riset Pasar

Teknologi

SDM

Service

Maket Share

Compliance

Marketing
Bank
Jakarta Engineering Timesheet Process
Simplify Process, Reduce Cycle Time, Speed up Billing Process
12/1/2013 3/31/2014
Estimated COPQ: Metric(s) to be Improved:
Lean Sigma Project Contract
Name of Project:
Business Driver(s):
Estimated Start Date: Estimated Completion Date:
SMO Eligible Personnel
Vision of Success:
Short term vision is to reduce penalty deduction due to late submission of invoices by improving timesheet
process. Long term vision is to achieve zero penalty.
Average $250.000 per Month
Cycle Timesheet Approval (↓); Existing Current Flow
Process
Problem / Opportunity Statement:
Since April 2013 CPI have issued about 65 SIF/ITC to RekindWorleyParsons (RW) to provide Engineering
Services such as : Detail Engineering Design, Front End Engineering Design, Process System
Improvement, HAZOP Study, Proposal for Engineering Services, Develop as built drawings/Drafting
Services etc.Total SIF/ITC value is around $ 5.3 M for 19 month period. This engineering service is
conducted in RW Jakarta Office. Compensation for the Services performed by the RW is based on
approved monthly Timesheet of RW's personnel assgined to the respective SIF/ITC. Timesheet approval is
currently processed thru hard copies and then inputted into CCMS based on appproved hard coppies. This
process has taken a longtime that resulting RW could not invoce to CPI on time and consequently CPI
applied penalty for late invoice submission. For this reason Jakarta Engineering Timesheet Process is
chosen for initial Lean Sigma project focus.
Project Deliverables:
Reducing cycle timesheet approval will accelerate billing process as well as penalty deduction
significantly.
In Project Scope: Not in Project Scope:
Existing Timesheet Process Flow, Jakarta
Engineering Eligible Personnel, Document
Controller, Project Controller, Timesheet
Approver, RW Support Office, CCMS
ECM- Offsite Engineering
Flow Process - Time Sheet approval
Timesheet Administrator (Bobby)
Tracking Status
Prepared by Ek/JPW, September24th
RW Payroll Duri (EKA) Project Engineer - ECM Employees Document Controll (Lina) ManagerEngineering
ECM
Project Control- ECM (IKA) Project Engineers
Chevron
Approve
Yes
No
Update to CCMS
template with detail
activity for each
persons to each project
timesheet for Internal
Use
Review& Input
Timesheet in to
CCMS
All ECM Project
Team Prepare
hardcopy
Timesheets in
manuall(fill
form).(Every
Thursday)
Collect all Hardcopy
Timesheets in Inbox
to get approval from
Engineering Manager
Download Timesheet Regularly in
CCMS and Monitor TS Status
(Reject, Waiting for Approval,
Approved) and Inform PE by
Email
Provide
Clarification
description
of
timesheets
TRA, AMEC &
BO Send
Original
approved
Timesheets to
Their Head
Office
Review and
Request/Provide
Clarification TS
Rejected to Engineers
Contact PE Chevron to
justify rejected hours.
Provide Clarification
Approve
Hardcopy
Timesheets
Upload GBS Hour of WPI
employees. Update
separated timesheet for
each project into HVR
(internal excell for
timesheet and cost) for
Weekly CPI Report
Reinput Rejected
Timesheets to
CCMS
Scan PDF of Approved
Timesheets and Send
it to RW Duri Payroll
(Pak Eka) and CC to
Bobby & Ikaby Email
Give Hardcopy TS to
Timesheet
Administrator
(Bobby)
Make Copy of Third party
Timesheets and Give
Original Timesheet
Harcopy to Third Party
Employees
Put into Inbox
at LinaBefore
2 PM
Send Native
Timesheets
Form to
Timekeepers
(Bobby) by
Email
Review and
Approve
Timesheets
in CCMS
Send Native Excel
TS to Pak Eka.
<Friday/Monday>
by Email
Review&Verify SIF,Book
hours, Activity Description
PE Check&Followup If SIF
Still Valid
SIF VALID
Initiate
PCR,
request CPI
PE to
Extend SIF
NO
YES
Get all Timesheets
Hardcopy from Lina &
Native by Email
ECM Jakarta Engineering Timesheet

Supplier Output Process Input Customer
RW
Management
HRD

IT

Support






Employee

System

Time
Keeper

Reviewer

Approver









Approved
Timesheet

Billing

Opportunity
Cost

Penalty





Jakarta
Engineering
Timesheet
ECM Contractor
CPI User/DOA
Eligible Personnel
ECM Timekeeping
Support
Engineering Manager
Collect Timesheet
SIF Verified
by Proj.Eng
Revise SIF
Approve Initiate RCO
Input Timesheet in CCMS
Approved by
Eng Mgr.
Approve
N
N
Start
End
Y

Receive activated SIF
Submit Timesheet (hard
copy)
Monitor & Follow-up
Timesheet Completion
Complete Monthly
Timesheet Closing
1

2

6

7

3

4

5

Y

8

N
Y
9

N
Y

1 0

1 1

1 2




34
The House of Lean

R e d u c I n g a n d E l i m i n a t i n g W a s t e
Kaizen
Lean
Sigma


Continuous
Improvement
through
workforce
engagement
Customer
Satisfaction
Quality Cost Timelines
s
Environment Safety
Just in
Time
Jidoka
What is
needed
when it's
needed
as much as
needed
Value
Stream
Mapping
Flow

Cells

Pull

Quick
Changeover
Seeing the
Waste

Problem
Solving

Mistake
Proofing
Standardization and Stability
Surfacing
and solving
problems
Standardized Work
Visual Workplace
5S TPM
Reducing and Eliminating Waste

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