LEAN SIX SIGMA September 11, 2019 Virtual Attendees - Make a note - PowerPoint PPT Presentation

LEAN SIX SIGMA September 11, 2019

Virtual Attendees - Make a note of all letters z Forms of Retirement Plans A. What is a “Defined Benefit” (DB) Retirement Plan?  A form of retirement plan where retirement benefits can be determined ahead of time and is based upon a known formula. Social Security, Military Pensions and the ASRS are examples of Defined Benefit retirement plans. B. What is a “Defined Contribution” (DC) Retirement Plan?  A form of retirement plan where the retirement benefits are not known ahead of time and are based upon contributions made, investment returns realized, and expenses paid. 401(k)s and IRAs are examples of Defined Contribution retirement plans. 1

TRAINING RESULTS • Gain a deeper insight into Lean & Six Sigma • Strengthen knowledge on the following continuous improvement tools/techniques: – Process Mapping – Problem Solving – Standard Work

WHAT IS SIX SIGMA? • Definition: Methodology for process improvement and a statistical concept that seeks to define the variation inherent in any process • History: – 1980: Bill Smith, considered to the the father of Six Sigma, and Bill Smith formulated concept in Motorola – 1983: Larry Bossidy of Allied Signal (now Honeywell) began implementation – 1995: Made popular by Jack Welch of General Electric; incorporated into all of their processes and managers were required to go through Six Sigma training

VARIATION/DEFECTS • Six Sigma (6σ) is a statistical representation for what many experts call “perfect” • In a 6σ process, there are only 3.4 defects per million opportunities, which means 99.99966% of the products/services from a Six Sigma process are without defect Six Sigma Calculator # of opportunities - # of defects # of opportunities X 100 = Yield Defect Rate Yield % Sigma Level 308,770 69.10000% 2σ 66,811 93,33000% 3σ 6,210 99.38000% 4σ 233 99.97700% 5σ 3.44 99.99966% 6σ

WHAT IS LEAN? • Definition: Improving processes in order to maximize customer value while minimizing waste • History: – 1798: Eli Whitney introduced his uniformity system (interchangeable parts) – 1913: Henry Ford began to integrate a flow production system with standard work to maximize production – 1930’s: Toyota revisited Ford’s concept and shifted the focus of individual machines to the flow of the product through the total process (Toyota Production System)

TYPES OF WASTE: TIMWOODS [Waste Video] • T ransportation: moving items or information • I nventory: items/information that customer has not received • M otion: excessive movement within the workspace • W aiting: waiting for information or items to arrive • O verproduction: doing work before it is needed • O verprocessing: doing more work than necessary • D efects: mistakes or errors that need to be reworked • S kills: not using workers to fullest of abilities

SIMILARITIES & DIFFERENCES Lean Six Sigma - Improve process - Improve process efficiency effectiveness - Eliminate waste - Reduce variation/defects - Focus on value for - Focus on quality for the customer customer - Uses PDCA - Uses DMAIC - Continuous improvement - Continuous improvement focused focused

WHY LEAN SIX SIGMA? • Creates a culture that demands continuous improvement and the long term pursuit of perfection • Gives employees the tools to: • Identify problems within processes • Enables them to pinpoint performance gaps • Make necessary improvements

PROBLEM SOLVING METHODS 1. Clearly define the problem 2. Break down the problem 3. Identify the goal and set a target 4. Determine root cause 5. Develop countermeasures 6. Implement countermeasures 7. Check results 8. Standardize process

COMMON LEAN SIX SIGMA TOOLS & TECHNIQUES

PROCESS MAPPING Why focus on the process? Services we provide are created through processes 85% of improvement opportunities are here The other 15% lies in aligning organization goals and strategies

ALL WORK IS A PROCESS What Is a Process? A series of actions or steps taken in order to achieve a particular end 3 4 1 2 If you can’t explain what you are doing as a process, you don’t know what you are doing W. Edwards Deming

CURRENT STATE PROCESS MAPPING • Provides a visual representation of how the work is actually being done by staff • Shows tasks/activities in a sequence • Identified/clarifies roles & responsibilities

CURRENT STATE PROCESS MAP ACTIVITY Map the process of your getting to work every day Instructions: 1) Start with the book-ends (first action/step=get up; last action/step=arrive at work) 2) Using only one sticky per action/step, map your process to get to work 3 4 1 2

FUTURE STATE PROCESS MAP • Identify opportunities for improvement • Streamline activities by removing unnecessary steps • Eliminate redundancies • Automate process (or a part of the process)

FUTURE STATE PROCESS MAP ACTIVITY Scenario: Late for work daily Activity: Review your current state process map and determine what change/s you could try to make in order to get to work on time.

RAPID CYCLE PDCA ACTIVITY Toss the Ball Rules • All members must stand and be at least 1 arm’s length away from other members • You must sit down after you have tossed the ball • The ball must be passed to everyone in your group except the last person (who needs to just sit down after they catch the ball)

INTENTIONAL FOCUSED EFFORT

ROOT CAUSE ANALYSIS EXAMPLE Problem: Service tickets are not being completed timely [5 Why Video] Why are tickets not being completed timely? Too many tickets coming in for password changes (C) Tickets are missing critical information (A) They are using old WHY? They don’t know what to The new system requires them to change versions that do not put on tickets their password every 90 days and they do have fields we need (B) not know how WHY? They have not been They may not have the new They don’t read the instructions on the trained form website page on how to change it They don’t know where to find the We have not trained them We may not have sent it to them WHY? instructions We have not developed They may not be on our list WHY? The instructions are a little hard to find the training WHY? We don’t always know who They are buried within the FAQ’s page the assigned representatives are for the division or an agency

ROOT CAUSE ANALYSIS ACTIVITY Instructions: 1) Identify a problem that one of your small group members’ is currently experiencing, or select one of the problems below: 1. Monthly report is consistently being produced late 2. Organizations are not in compliance with financial requirements 3. Payments are not being processed timely 4. Errors in invoice payments (e.g. wrong amount, duplicate payments, etc.) 2) Complete the Root Cause Analysis Worksheet on the selected problem 3) Brainstorm a list of all possible countermeasures/solutions for each

EVALUATION MATRIX 1. High Impact / Low Difficulty 3. High Impact & High Difficulty High ∙ ∙ Longer time to implement Quick / less time to implement ∙ ∙ Higher cost / resources needed Low cost / few resources needed ∙ ∙ Higher level of approvals needed; Few approvals needed statues, laws, rules, etc. could be involved IMPACT 2. Low Impact & Low Difficulty 4. Low Impact and High Difficulty ∙ ∙ Hard to implement Implement immediately (Just Do ∙ High cost / resources needed It!) ∙ No approvals needed ∙ No cost / resources needed Low High Low DIFFICULTY

STANDARD WORK Purpose: Improves the quality and consistency of our work 1) Documents the steps and key points within the process in the most efficient manner possible 2) When followed, standard work allows improvement to be sustainable over time – with each improvement becoming part of the latest version of the “best known way” to complete the process/work 3) Can take the form of checklists, process flow diagrams, job breakdown sheets, or other formats determined by the team members 4) Used to confirm process adherence 5) Needs to be easily accessible to the team, and should include the “date” of the last revision.

STANDARD WORK EXAMPLES

RESOURCES • Lean Six Sigma Curriculum The Council for Six Sigma Certification https://www.sixsigmacouncil.org/six-sigma-training- material/ • Six Sigma Calculator https://www.isixsigma.com/process-sigma-calculator/ • Arizona Management System https://ams.az.gov/

Questions/Reflections?

TRAINING EVALUATION Plus (+) Delta (-) What worked? What could be improved? What did you like? What was unclear? What things were helpful? What things were not so helpful? What’s missing?