1. D efine
Measure
Analyze
Improve
Control
Operational
Excellence
By Lee Olson
Presentation to INFORMS
Six Sigma
Six Sigma: DMAIC; Y=f(x)
Is it a Goal, a Measure, a Process,
a Tool or an expletive deleted?

2. Operational Excellence
D efine
Measure
Analyze
Improve
Control
Objectives
 Understand the Basics of the Six Sigma Program
 Understand How Six Sigma Relates to Lean, TOC, TQM
(Theory Of Constraints; Total Quality Management)
 Ability to Define a Strategy and Roadmap for Success

3. Operational Excellence
D efine
Measure
Analyze
Improve
Control
Define
 Is it a Goal, a Measure, a Process, a Tool or an expletive
deleted?
 Yes

4. Operational Excellence
D efine
Measure
Analyze
Improve
Control
Define
Six Sigma
 Is a management methodology
• Customer focused
• Data driven decisions
• Breakthrough performance gains
• Validated bottom line results

5. Operational Excellence
D efine
Measure
Analyze
Improve
Control
Customer Focused
Our Performance Compared to Competitors
ImportancetoCustomers
We’re Better They’re Better
High
Moderate-
to-’Low’
• Price
• Complaints
• OTD• Quality
• Training
• Complete
• Shared Goals
Top 5 Action Items
Driver Action Description Status Status Description Owner
Original Due
Date
Current
Due Date
Late Supplier Deliveries Monthly reporting to suppliers on delivery &
quality metrics.
On
track
Report Cards Implemented. Adam 5/21 5/21
Late Supplier Deliveries Arrange face to face meetings with top
offenders.
On
track
Meetings Complete with top 10
Suppliers.
Beth 6/15 6/15
Late Supplier Deliveries Review and approve supplier's corrective action
plan.
Caution Corrective Action Plan in Place for 2
major Suppliers
Carlos 7/15 9/15
xyz Cell Always Late Kaizen Event to focus on improving throughput
by 40% and improve labor efficiency by 35%
On
track
Event held 5/1. 25% throughput
improvement in May. Labor Efficiency
Increase of 30%
Doreen 5/21 5/21
Unrealistic Promise Date Focus on custom products to provide realistic
ATP based on inventory and leadtime of
components.
Problem Continued lack of progress. Re-
structured and focused team.
Developing detailed plan.
Earnest 6/15 8/15
ON TIME DELIVERY (sample)
The percentage of sales order line items that ship complete on or before the original customer promise date, for
all line items shipped in the month.
On-Time Delivery
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Target
Pareto of Drivers
0%
25%
50%
75%
100%
Late
Supplier
Deliveries
xyzCell
Always
Late
Unrealistic
Promise
Date
Orderson
CreditHold
LowYield
onpartabc
Engineering
Change
Orders
Reason
%Impact

6. Operational Excellence
D efine
Measure
Analyze
Improve
Control
Data Driven Decisions
Why should we test or inspect Y, if we know this relationship?
• Y
• Dependent
• Output
• Effect
• Symptom
• Monitor
• Response
• X1 . . . XN
• Independent
• Input-Process
• Cause
• Problem
• Control
• Factor
To get results, should we focus our behavior on the Y or X ?
f (X)f (X)Y=Y=

7. Operational Excellence
D efine
Measure
Analyze
Improve
Control
2 308,537
3 66,807
4 6,210
5 233
6 3.4
2 308,537
3 66,807
4 6,210
5 233
6 3.4
σσ PPMPPM
Breakthrough performance gains
Sigma is a statistical unit of measure which reflects process
capability. The sigma scale of measure is perfectly correlated to such
characteristics as defects-per-unit, parts-per million defective, and
the probability of a failure/error.
(Distribution Shifted ± 1.5σ)
Process
Capability
Process
Capability
Defects per Million
Opportunities
Defects per Million
Opportunities

8. Operational Excellence
D efine
Measure
Analyze
Improve
Control
Validated bottom line results
Price
IncreaseM
aterialCosts
Volum
e
Inc.w
ith
LeverageM
anufacturing
SG
&A
Volum
e
Inc.No
Leverage
Taxes
Labor
W
orking
Capital
G
eneral-5%
Price
Reduction
ImpactonBottomL
Assuming a 10% change in the factor
Factors

9. Operational Excellence
D efine
Measure
Analyze
Improve
Control
Define
Methodology
 Define
 Measure
 Analyze
 Improve
 Control

10. Operational Excellence
D efine
Measure
Analyze
Improve
Control
Roadmap
Example
Next Project
Define
Customers, Value, Problem Statement
Scope, Timeline, Team
Primary/Secondary & OpEx Metrics
Current Value Stream Map
Voice Of Customer (QFD)
Measure
Assess specification / Demand
Measurement Capability (Gage R&R)
Correct the measurement system
Process map, Spaghetti, Time obs.
Measure OVs & IVs / Queues
Analyze (and fix the obvious)
Root Cause (Pareto, C&E, brainstorm)
Find all KPOVs & KPIVs
FMEA, DOE, critical Xs, VA/NVA
Graphical Analysis, ANOVA
Future Value Stream Map
Improve
Optimize KPOVs & test the KPIVs
Redesign process, set pacemaker
5S, Cell design, MRS
Visual controls
Value Stream Plan
Control
Document process (WIs, Std Work)
Mistake proof, TT sheet, CI List
Analyze change in metrics
Value Stream Review
Prepare final report
Validate
Project $
Validate
Project $
Validate
Project $
Validate
Project $
Celebrate
Project $

11. • Develop a focused Problem Statement and Objective
• Develop a Process Map and/or FMEA
• Develop a Current State Map
• Identify the response variable(s) and how to measure them
• Analyze measurement system capability
• Assess the specification (Is one in place? Is it the right one?)
Practical
Problem
Problem
Definition
• Characterize the response, look at the raw data
• Abnormal? Other Clues? Mean or Variance problem?
• Time Observation • Spaghetti Diagram • Takt Time
• Future State Maps • Percent Loading
• Standard Work Combination
• Use Graphical Analysis, Multi-Vari, ANOVA and basic
statistical tools to identify the likely families of variability
Problem
Solution
• Identify the likely X’s
• 5S • Set Up Time Reduction (SMED)
• Material Replenishment Systems
• Level Loading / Line Leveling
• Cell Design • Visual Controls
• Use Design of Experiments to find the critical few X’s
• Move the distribution; Shrink the spread; Confirm the results
Problem
Control
• Mistake Proof the process (Poka-
Yoke)
• Tolerance the process
• Measure the final capability
• Place appropriate process controls on
the critical X’s
• Document the effort and results
• Standard Work • TPM
Identify
Problem
• Strategic Link to Business Plan defined in Project Selection Process
• Defined Business Impact with Op Ex Champion support
• Structured Brainstorming at all organizational levels
• Cause and Effect Diagrams identifying critical factors
• Primary and Secondary Metrics defined and charted
• Multi-Level Pareto Charts to confirm project focus
 What do you want to know?
 How do you want to see what it is that you need
to know?
 What type of tool will generate what it is that you
need to see?
 What type of data is required of the selected tool?
 Where can you get the required type of data?
Problem Solving
Plan Execute
Execute Plan
Crane Co. Op. Ex. Methodology Originated by MBBs; D. Braasch, J. Davis, R. Duggins, J. O’Callaghan, R. Underwood, I. Wilson
OperationalExcellenceMethodology
Based in part on Six Sigma Methodology developed by GE Medical Systems and Six Sigma Academy, Inc.

12. Operational Excellence
D efine
Measure
Analyze
Improve
Control
Define
Key Items
 Customers, Value, Problem Statement
 Scope, Timeline, Team
 Primary/Secondary & OpEx Metrics
 Current Value Stream Map
 Voice Of Customer (QFD)
(Quality Function Deployment)

13. Operational Excellence
D efine
Measure
Analyze
Improve
Control
Project Selection
Impact
 Business Impact
• Revenue Growth
• Cost Reduction
• Capital Reduction
• Key Business Objectives
• On Time Delivery
• Lead Time
• Quality
• Customer Satisfaction
 Impact on Operational Excellence Metrics

14. Operational Excellence
D efine
Measure
Analyze
Improve
Control
Evaluate and Rank Suggestions
Effort and Risk
 Effort required
• People Resources
• Capital Resources
• Duration of Project
 Probability of success
• Technical Risk
• Data available
• Knowledge of process
• Management Risk
• Aligned with objectives
• Support by value stream manager
 Impact vs. Risk vs. Effort
• Assess ROI (Return On Investment)
• Assign priorities to projects

15. Operational Excellence
D efine
Measure
Analyze
Improve
Control
Evaluate and Rank Suggestions
Example tool to rank projects
0106-01 Project Rating.xls

16. Project
Ranking
1
2
3
4
5
6
7
8
9
0
1
2
3
4
5
1 2 3 4 5
Effort
Impact
Project
Number
Risk =
Ball Size n
Example chart to rank projects 0106-01 Project Rating.xls

17. Operational Excellence
D efine
Measure
Analyze
Improve
Control
Measure
 Establish measurement capability
• Validate the database (transactional)
• Gage R&R (Repeatability & Reproducibility)
• Calibration is not enough
• Many (or most) measurement systems are not capable
• How good is the data you are using to make decisions?
 Fix the measurement system
• Enables calculation of process capability
• Enables calculation of alpha & beta risks
• This step is often skipped

18. Operational Excellence
D efine
Measure
Analyze
Improve
Control
Analyze
(and fix the obvious)
 Find all KPOVs & KPIVs
(Key Process Output Variables; Key Process Input Variables)
 FMEA, DOE, critical Xs, VA/NVA
(Failure Modes Effects Analysis; Design Of Experiment)
 Graphical Analysis, ANOVA
(Analysis Of Variance)
 Future Value Stream Map

19. Operational Excellence
D efine
Measure
Analyze
Improve
Control
Improve
 Optimize KPOVs & test the KPIVs
(Key Process Output Variables; Key Process Input Variables)
 Redesign process, set pacemaker
 5S, Cell design, MRS
(Material Replenishment System)
 Visual controls
 Value Stream Plan

20. Operational Excellence
D efine
Measure
Analyze
Improve
Control
Control
 Management of Change
• Owned by project champion and value stream manager
• Critical to long term success of project
• Physical and cultural changes
 Measurement controls
• On-going metrics
 Visual Controls
• Enable workers to self-manage the process

21. Operational Excellence
D efine
Measure
Analyze
Improve
Control
Basic Implementation
Roadmap
Understand and Define
Entire Value Streams
Deploy Key Business Objectives
- Measure and target (metrics)
- Align and involve all employees
- Develop and motivate
Define, Measure, Analyze, Improve
Identify root causes, prioritize, eliminate waste,
make things flow and pulled by customers
Control
-Sustain Improvement
-Drive Towards Perfection
Identify Customer Requirements
Vision (Strategic Business Plan)
Continuous Improvement (DMAIC)
Identify Customer Requirements

22. Operational Excellence
D efine
Measure
Analyze
Improve
Control
Hoshin
Key: Impact Owner Support
Type in --> 4 l m
1.2 6
1.1 5
3.2 4
3.1 3
2.2 2
2.1 1
3.0
2.0
1.0
1
2
3
4
5
6
7
8
Resource
Implementleanconceptsintop3volumelines
establishparetoofdriversforOTD
IT
Operations
Quality
Engineering
Maintenance
Marketing
Leadershaveabilitytomapavaluestream
Metricsmoduleinallappropriatetrainingsequences
Trainingprojectsdemonstrateflowdownofmeticsto
operationallevel
Developcultureofteams
ImproveCustomerFocus
Educate/GetEveryoneInvolved
ImprovetheMetrics
Training
Establish tracking of OTD in every cell
Improve On Time Delivery to 98%
Train workers in how our products are used by our major customers
Complete1LeadershipLGBtrainingcourse
Traineesparticipateincustomersurvey
Complete3functionalLGBtrainingcourses
Bringrepsfromtop10customersinforplanttours
100%CompletionofLGBProjects
Conduct interviews with top 10 customers
Train functional leaders as LGBs
Train leadership team as Lean Green Belts (LGB)
Your Annual Breakthrough
Objectives
YourManager's1-Year
Breakthrough
Objectives
Indicator'sandGoals
Benefits

23. Top 5 Action Items
Driver Action Description Status Status Description Owner
Original Due
Date
Current
Due Date
Late Supplier Deliveries Monthly reporting to suppliers on delivery &
quality metrics.
On
track
Report Cards Implemented. Adam 5/21 5/21
Late Supplier Deliveries Arrange face to face meetings with top
offenders.
On
track
Meetings Complete with top 10
Suppliers.
Beth 6/15 6/15
Late Supplier Deliveries Review and approve supplier's corrective action
plan.
Caution Corrective Action Plan in Place for 2
major Suppliers
Carlos 7/15 9/15
xyz Cell Always Late Kaizen Event to focus on improving throughput
by 40% and improve labor efficiency by 35%
On
track
Event held 5/1. 25% throughput
improvement in May. Labor Efficiency
Increase of 30%
Doreen 5/21 5/21
Unrealistic Promise Date Focus on custom products to provide realistic
ATP based on inventory and leadtime of
components.
Problem Continued lack of progress. Re-
structured and focused team.
Developing detailed plan.
Earnest 6/15 8/15
ON TIME DELIVERY (sample)
The percentage of sales order line items that ship complete on or before the original customer promise date, for
all line items shipped in the month.
On-Time Delivery
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Target
Pareto of Drivers
0%
25%
50%
75%
100%
Late
Supplier
Deliveries
xyzCell
Always
Late
Unrealistic
Promise
Date
Orderson
CreditHold
LowYield
onpartabc
Engineering
Change
Orders
Reason
%Impact

24. Operational Excellence
D efine
Measure
Analyze
Improve
Control
Does it work?.
Source: American Customer Satisfaction Index, U Michigan, HBR, 2001
1999
73 companies
Ralston
Purina
Quaker Oats
Hilton Hotels
Coca-Cola
Unilever
etc.
The top companies in Customer Satisfaction grow MVA at
nearly twice the rate of their poor-performing counterparts.
$23
$42
0
10
20
30
40
50
Low High
Customer Satisfaction Index Score
MarketValueAdded
In Billions $

25. Operational Excellence
D efine
Measure
Analyze
Improve
Control
What about Lean, TOC, TQM
 Six Sigma
• Remove defects, minimize variance
 Lean
• Remove waste, shorten the flow
 TOC
• Remove and manage constraints
 TQM
• Continuous Improvement

26. Value Stream Map - Current State
Customer
Demand = 45 per day
2 shifts
Stamping
342
CT=1sec
Co=1 hr.
Uptime=85%
S. Weld # 1
CT=3 min
Co=10 min.
Uptime=70%
I
I
I
I
Coils
5 days
CT= 15 min
Co=0 min.
Uptime=100
%2 shifts
CT= 67 min
Co= 23 min
FTY = 67%
2 shifts
Shipping
I
I
81
202122
Assembly Test
90
1X
Daily
90/60/30 day
Forecasts
Order Entry
Production
Control
MRP
6 WEEK
Forecast
Suppliers Weekly
Fax
WEEKLY SCHEDULE
Lead Time - 34 Days
5 days
1 sec
7.6 days
3 min
1.8 days
15 min
2.7 days
67 min
4.5 days
4 min
2 days
Lead Time
=23.6 days
1 shift1 shift
CT= 4 min
Co=0
Uptime=100
%2 shifts
Competitive Lead Time
= 3 Days
Takt Time
= 18.2 Minutes
Orders/day
= 36
Queue
= 1.5 Days
Touch Time
= 89 min

27. Customer
Demand = 45 per day
2 shifts
Stamping
342
CT=1sec
Co=1 hr.
Uptime=85%
S. Weld # 1
CT=3 min
Co=10 min.
Uptime=70%
I
I
I
I
Coils
5 days
CT= 15 min
Co=0 min.
Uptime=100
%2 shifts
CT= 67 min
Co= 23 min
FTY = 67%
2 shifts
Shipping
I
I
81
202122
Assembly Test
90
1X
Daily
90/60/30 day
Forecasts
Order Entry
Production
Control
MRP
6 WEEK
Forecast
Suppliers Weekly
Fax
WEEKLY SCHEDULE
Lead Time - 34 Days
5 days
1 sec
7.6 days
3 min
1.8 days
15 min
2.7 days
67 min
4.5 days
4 min
2 days
Lead Time
=23.6 days
1 shift1 shift
CT= 4 min
Co=0
Uptime=100
%2 shifts
Competitive Lead Time
= 3 Days
Takt Time
= 18.2 Minutes
Orders/day
= 36
Queue
= 1.5 Days
Touch Time
= 89 min
Competitive LT = 3 days
Takt Time = 18.2 min
Customer Data
On-Time Delivery
Demand = 45/day

28. Customer
Demand = 45 per day
2 shifts
Stamping
342
CT=1sec
Co=1 hr.
Uptime=85%
S. Weld # 1
CT=3 min
Co=10 min.
Uptime=70%
I
I
I
I
Coils
5 days
CT= 15 min
Co=0 min.
Uptime=100
%2 shifts
CT= 67 min
Co= 23 min
FTY = 67%
2 shifts
Shipping
I
I
81
202122
Assembly Test
90
1X
Daily
90/60/30 day
Forecasts
Order Entry
Production
Control
MRP
6 WEEK
Forecast
Suppliers Weekly
Fax
WEEKLY SCHEDULE
Lead Time - 34 Days
5 days
1 sec
7.6 days
3 min
1.8 days
15 min
2.7 days
67 min
4.5 days
4 min
2 days
Lead Time
=23.6 days
1 shift1 shift
CT= 4 min
Co=0
Uptime=100
%2 shifts
Competitive Lead Time
= 3 Days
Takt Time
= 18.2 Minutes
Orders/day
= 36
Queue
= 1.5 Days
Touch Time
= 89 min
Raw = 5 days
WIP = 12.1 days
FG = 6.5 days
Inventory

29. Customer
Demand = 45 per day
2 shifts
Stamping
342
CT=1sec
Co=1 hr.
Uptime=85%
S. Weld # 1
CT=3 min
Co=10 min.
Uptime=70%
I
I
I
I
Coils
5 days
CT= 15 min
Co=0 min.
Uptime=100
%2 shifts
CT= 67 min
Co= 23 min
FTY = 67%
2 shifts
Shipping
I
I
81
202122
Assembly Test
90
1X
Daily
90/60/30 day
Forecasts
Order Entry
Production
Control
MRP
6 WEEK
Forecast
Suppliers Weekly
Fax
WEEKLY SCHEDULE
Lead Time - 34 Days
5 days
1 sec
7.6 days
3 min
1.8 days
15 min
2.7 days
67 min
4.5 days
4 min
2 days
Lead Time
=23.6 days
1 shift1 shift
CT= 4 min
Co=0
Uptime=100
%2 shifts
Competitive Lead Time
= 3 Days
Takt Time
= 18.2 Minutes
Orders/day
= 36
Queue
= 1.5 Days
Touch Time
= 89 min
Touch Time = 89 min
Flow of Value
Lead Time
Lead Time = 23.6 days

30. Customer
Demand = 45 per day
2 shifts
Stamping
342
CT=1sec
Co=1 hr.
Uptime=85%
S. Weld # 1
CT=3 min
Co=10 min.
Uptime=70%
I
I
I
I
Coils
5 days
CT= 15 min
Co=0 min.
Uptime=100
%2 shifts
CT= 67 min
Co= 23 min
FTY = 67%
2 shifts
Shipping
I
I
81
202122
Assembly Test
90
1X
Daily
90/60/30 day
Forecasts
Order Entry
Production
Control
MRP
6 WEEK
Forecast
Suppliers Weekly
Fax
WEEKLY SCHEDULE
Lead Time - 34 Days
5 days
1 sec
7.6 days
3 min
1.8 days
15 min
2.7 days
67 min
4.5 days
4 min
2 days
Lead Time
=23.6 days
1 shift1 shift
CT= 4 min
Co=0
Uptime=100
%2 shifts
Competitive Lead Time
= 3 Days
Takt Time
= 18.2 Minutes
Orders/day
= 36
Queue
= 1.5 Days
Touch Time
= 89 min
CT (67) > Takt Time (18)
Constraints
OTD, Lead Time
Max Wip = 7.6 days

31. Customer
Demand = 45 per day
2 shifts
Stamping
342
CT=1sec
Co=1 hr.
Uptime=85%
S. Weld # 1
CT=3 min
Co=10 min.
Uptime=70%
I
I
I
I
Coils
5 days
CT= 15 min
Co=0 min.
Uptime=100
%2 shifts
CT= 67 min
Co= 23 min
FTY = 67%
2 shifts
Shipping
I
I
81
202122
Assembly Test
90
1X
Daily
90/60/30 day
Forecasts
Order Entry
Production
Control
MRP
6 WEEK
Forecast
Suppliers Weekly
Fax
WEEKLY SCHEDULE
Lead Time - 34 Days
5 days
1 sec
7.6 days
3 min
1.8 days
15 min
2.7 days
67 min
4.5 days
4 min
2 days
Lead Time
=23.6 days
1 shift1 shift
CT= 4 min
Co=0
Uptime=100
%2 shifts
Competitive Lead Time
= 3 Days
Takt Time
= 18.2 Minutes
Orders/day
= 36
Queue
= 1.5 Days
Touch Time
= 89 min
CO = 23 min
CO = Changeover
Setup Times
OP Margin, Lead Time
CO = 1 hour

32. Customer
Demand = 45 per day
2 shifts
Stamping
342
CT=1sec
Co=1 hr.
Uptime=85%
S. Weld # 1
CT=3 min
Co=10 min.
Uptime=70%
I
I
I
I
Coils
5 days
CT= 15 min
Co=0 min.
Uptime=100
%2 shifts
CT= 67 min
Co= 23 min
FTY = 67%
2 shifts
Shipping
I
I
81
202122
Assembly Test
90
1X
Daily
90/60/30 day
Forecasts
Order Entry
Production
Control
MRP
6 WEEK
Forecast
Suppliers Weekly
Fax
WEEKLY SCHEDULE
Lead Time - 34 Days
5 days
1 sec
7.6 days
3 min
1.8 days
15 min
2.7 days
67 min
4.5 days
4 min
2 days
Lead Time
=23.6 days
1 shift1 shift
CT= 4 min
Co=0
Uptime=100
%2 shifts
Competitive Lead Time
= 3 Days
Takt Time
= 18.2 Minutes
Orders/day
= 36
Queue
= 1.5 Days
Touch Time
= 89 min
Maintenance
OTD, Lead Time
Uptime = 70%

33. Customer
Demand = 45 per day
2 shifts
Stamping
342
CT=1sec
Co=1 hr.
Uptime=85%
S. Weld # 1
CT=3 min
Co=10 min.
Uptime=70%
I
I
I
I
Coils
5 days
CT= 15 min
Co=0 min.
Uptime=100
%2 shifts
CT= 67 min
Co= 23 min
FTY = 67%
2 shifts
Shipping
I
I
81
202122
Assembly Test
90
1X
Daily
90/60/30 day
Forecasts
Order Entry
Production
Control
MRP
6 WEEK
Forecast
Suppliers Weekly
Fax
WEEKLY SCHEDULE
Lead Time - 34 Days
5 days
1 sec
7.6 days
3 min
1.8 days
15 min
2.7 days
67 min
4.5 days
4 min
2 days
Lead Time
=23.6 days
1 shift1 shift
CT= 4 min
Co=0
Uptime=100
%2 shifts
Competitive Lead Time
= 3 Days
Takt Time
= 18.2 Minutes
Orders/day
= 36
Queue
= 1.5 Days
Touch Time
= 89 min
QualityFTY = 67%

34. Customer
Demand = 45 per day
2 shifts
Stamping
342
CT=1sec
Co=1 hr.
Uptime=85%
S. Weld # 1
CT=3 min
Co=10 min.
Uptime=70%
I
I
I
I
Coils
5 days
CT= 15 min
Co=0 min.
Uptime=100
%2 shifts
CT= 67 min
Co= 23 min
FTY = 67%
2 shifts
Shipping
I
I
81
202122
Assembly Test
90
1X
Daily
90/60/30 day
Forecasts
Order Entry
Production
Control
MRP
6 WEEK
Forecast
Suppliers Weekly
Fax
WEEKLY SCHEDULE
Lead Time - 34 Days
5 days
1 sec
7.6 days
3 min
1.8 days
15 min
2.7 days
67 min
4.5 days
4 min
2 days
Lead Time
=23.6 days
1 shift1 shift
CT= 4 min
Co=0
Uptime=100
%2 shifts
Competitive Lead Time
= 3 Days
Takt Time
= 18.2 Minutes
Orders/day
= 36
Queue
= 1.5 Days
Touch Time
= 89 min
What is the pitch time?
Flow of Value
OTD, Lead TimeWho is setting the pace?

35. Operational Excellence
D efine
Measure
Analyze
Improve
Control
Making it happen
Three major roles
 Implementer
• Learns the tools
• Works the process
• Solves day to day problems
 Manager
• Learns the methodology
• Manages a value stream
• Reviews project teams
 Leader
• Establishes the vision for the future
• Sets priorities
• Encourages
Where do you
need to focus?