Continuous Improvement and Productivity March 2, 2020
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Lean vs Six Sigma - Objectives • Can be applied to all business areas Removes: administration, service delivery, manufacturing • Process Waste • Non Value Steps Focuses on Process: • Stability Predictable • Capability • Globally recognized for realizing significant cost reduction, increased efficiency and quality 3 3 3 3
Creating a Productivity & Continuous Improvement Culture 4 4 4
Measures of success Purpose: Mission or Vision Voice of Business Strategic Focus Areas and Outcomes (VOB) Voice of Client/Customer needs and Customer complaints (VOC) Voice of Process Specification Limits and/or Targets (VOP) Day-to-Day activities 6 6 6
VOB VOC VOP Voice of Business: Voice of Customer: Voice of Process: • Revenue • Specifications • Capable ; meets targets • Cost of operation • Customer Satisfaction • Stable ; predictable over time • Service & Quality • Safety (personal and • Control Limits (Charts) information) • Customer Satisfaction • Lag indicators (Outputs) • Employee Satisfaction • Lead indicators (Inputs) • Safety 7 7 7
People accomplish the Purpose Processes C apable People and S table Autonomy A ttitude Mastery S kills The Performance Zone K nowledge Purpose Technology P erformance and A ccuracy 9 9 9
Top Drivers of Engagement & Performance Engagement 1 Connection between work & organizational strategy 2 Importance of job to organizational success 3 Understanding how to complete work projects Performance 1 Fairness & accuracy of informal feedback 2 Risk taking 3 Emphasis (formal reviews) on performance strengths • Source: Corporate Leadership Council 1 0 1 0 1 0
Technology Is the equipment at optimum performance, do employees have the right tools and do they know how to use them? o Put the right technical tools and automation in place o Training and support o Review Preventive Maintenance Schedules o Adjust equipment to operate at specifications o Calculate the Operational Equipment Efficiency (OEE) and monitor o Upgrade equipment (hardware vs. software) o Timely address ‘problem tickets’ 1 1 1 1 1 1
Voice of the Process (VOP) ○ Specific data that indicates how your process is doing towards reaching your business objective goals Most Least effective effective In-Process Measures Real Time Annually 1 3 1 3 1 3
Lead and Lag Measures LEAD LAG MEASURE MEASURE Tell you if you are Tell you if you have likely to achieve the achieved the goal. goal. Most high impact When you receive them, things your team must the performance that do to reach the goal drove them is already in (new behaviours that the past. drive success) 1 4 1 4 1 4
Process Mapping Customer Start End NO YES Dept 1 Step 1 Pass? Step 2 NO Dept 2 Step 3 Pass? YES Dept 3 Step p 4 Step p 5 1 5 1 5 1 5
Performance & Quality In-Process Indicators (P’s & Q’s) Performance Indicators should be applied to a Process Map – P1, P2... Quality Indicators should be applied to a Process Map – Q1, Q2... • Checkpoints that indicate how the process is preforming . • Specifications or Targets are identified LEA EAD D MEAS ME ASURES URES • Made visual to those doing the work 1 6 1 6 1 6
Process Mapping Customer Start End NO YES Dept 1 Step 1 Pass? Step 2 Q2 Q2 NO P1 P1 Dept 2 Step 3 Pass? Q1 Q1 YES P2 P2 Dept 3 Step p 4 Step p 5 1 7 1 7 1 7
Process Control Plan 1) Who owns the process? 2) Are Operational Definitions required? PROCESS CONTROL PLAN Process Name: Operational Definitions: Process Owner: 1 2 Revison level: Date Process Step # Decsion role (P or Q Sample What to do (who makes the indicator Input (X) or Spec Limits Performance size if out of call on what to number) Description of activity to monitor What is controled Output (Y) (USL / LSL) Metric Control method needed Frequency Who checks spec limits do?) SOP's P1 4 5 6 3 P2 Q1 Q2 4) Is in a lead or lag 6) Where are the 3) Be specific about 5) How often Where, What and Variable indicator? What are the Standard does it get Spec Limits and Operating checked? Performance Measures Procedures and sample size needed? found? 1 8 1 8 18 1 8
Processes connect People to Purpose VOP Capable = Ability to deliver on the customer requirements Stable = Consistent over time 1 9 1 9 1 9
4 th P a must have for a culture of Productivity and Continuous Improvement Problem Identification and Solving Process 2 1 2 1 2 1
Lean Basics 22 2 2 2 2 22 2 2
Find your “Hidden Factory” If each step in a process operates at 95% efficiency, what can the customer expect for delivery of your product? 95% 95% 95% 95% 95% 95% B E F A D C 90% 86% 81% 77% 74% Variation to performance amplifies throughout the process 2 3 2 3 2 3
Find your “Hidden Factory” 95% 95% 95% 95% 95% 95% 100 100 go in come out B E F A D C 5 Reworked 1 Reworked x 2 136 Units of effort to = 106 Units of produce 100 effort for 100 defect free Defect free products products 2 4 2 4 2 4
Ranking Control Methods Eliminate the Automate possibility 2 1 3 4 SOP’s & Monitor inputs (X’s) Standard and Output’s (Y’s) Work 2 5 2 5 2 5
Seriously consider improving your processes before you invest in automation ○ Speeding up one part of your process does not mean the whole process will speed up ○ Poor processes will be magnified with automation 2 6 2 6 2 6
W. Edward Deming on applying automation… “If you don't understand how to run an efficient operation, new machinery will just give you new problems of operation and maintenance. The sure way to increase productivity is to better administrate the people doing the work and machine. ” W. Edwards Deming 2 7 2 7 2 7
• Productivity & Quality are not achieved by ‘hitting a button’ 2 8 2 8 2 8
Thank you! Questions? 2 9 2 9 2 9
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