How to Improve Your Bottom-Line Using Lean Six Sigma
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How to Improve Your Bottom-Line Using
Lean Six Sigma
February 26th, 2014
Presented by: Luis Socconini, CEO of Lean Six Sigma,
and Maysa Hawwash, National Manager of Talent Management Solutions
Drake International
2. Free Offer
We’re offering a free 30-minute Consultation about
increasing your organization’s effectiveness through Lean
Six Sigma.
Contact Maysa to take advantage of this exclusive offer!
mhawwash@na.drakeintl.com
416.216.1067
For more information, call 416.216.1067
2
3. Background
• Currently, many companies have:
– Slow delivery of their products or services
– Constant rejections and/or customer complaints
– Inconsistent quality
– Poor customer service
– High prices and costs
– Poor internal communication
THESE COMPANIES ARE DESTINED TO DISAPPEAR
“It is not the big who eats the small…
It is the fast who eats the slow”
Jason Jennings
For more information, call 416.216.1067
3
4. Lean Six Sigma Focus
Price
Price
Profit
Cost
Profit
Cost
Traditional Thinking
Profit
Cost
Lean Six Sigma Thinking
Cost + Profit = Price
Price
Price (fixed) - Cost = Profit
“With lean six sigma, our monthly expenses are 40% less than before
implementing this great philosophy”
John Darroch, CEO of Apollo Sprayers
For more information, call 416.216.1067
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6. Lean Six Sigma Focus
Non-value adding time
Value-adding time
Total Time
Total Time
Less: Time, Costs, Defects, Inventory, Space, Waste
More: Productivity, Customer Satisfaction, Quality, Cash Flow
For more information, call 416.216.1067
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7. Why Implement Lean Six Sigma?
• LEAN = Speed
• SIX SIGMA = Quality
– Flexible processes
– Problem solving
– Teamwork
– Processes without variation
– Stable processes
– Redesign and innovation
– Continuous flow
• Cost reductions
• Improvements in quality
• Improvements in personal satisfaction
For more information, call 416.216.1067
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8. Lean Six Sigma Applications
•
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•
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•
•
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Manufacturing
Services
Offices
Hotels & Restaurants
Government
Healthcare
Accounting
Logistics
Construction
Bank
IT
Sports
For more information, call 416.216.1067
8
9. Impact Over Time
Benefits
With Lean Six Sigma
Traditional Improvement Methods
Baseline performance
Time
Lean Six Sigma offers a significant jump towards improvement.
For more information, call 416.216.1067
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10. Not Everyone Has the Same Focus
Planning
Engineering
Sales
Production
Safety
Packaging
Legal
Marketing
Design
Installation
For more information, call 416.216.1067
Cost Reduction
Customer
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11. Productivity Model
The 6 M’s
Manpower
Materials
Methods
Machines
Mother Nature
Measurements
Products/ Services
PROCESSES
Parameters
Quality
Cost
Response Time
Safety
Motivation
Social Impact
Environmental lmpact
Input
Output
Productivity =
Output
Input
For more information, call 416.216.1067
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12. Limitations to Productivity
Mu!
Muri = Overburden
Mura = Variability
無
理
無
駄
Muda = Waste
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12
13. OVERBURDEN = Muri
Overburden occurs when workers and/or machines are
required to produce beyond their natural limitations or
capacity.
Muri
Overburden
Stressors
TOO
HEAVY!
DIRTY!
DANGEROUS!
For more information, call 416.216.1067
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15. WASTE = Muda
1 Overproduction
Muda
2 Excess Inventory
3 Defects
4 Movement
5 Over Processing
6 Wait Time
7 Transport
Work that adds value
Work that does
not add value
Others:
Work that does not
add any value, but is
necessary under
current conditions
8 Energy
9 Talent
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15
16. Excess Inventory = Waste
Variable
Demand
Inventory
Slow Production
Time
Long set-up times
Rework/Defects
Productivity
Problems
Work for
Inspections
For more information, call 416.216.1067
16
17. Lean Six Sigma Tool Kit
Six Sigma
Lean
Strategy
◦ Hoshin Kanri
Structure
◦ TPM
◦ Value Stream Management
◦ Talent Management
◦ Lean Accounting
Basic Tools
◦ 5S
◦ Andon
◦ Value Stream Map
Tools to Minimize Cycle Time
◦ Cellular work
◦ Quick set-ups
Inventory Control and Planning
◦ Kanban
Tools to Improve Quality
◦ Poka Yoke, Standardized Work
Problem Solving
◦ 8 Disciplines/A3
•
•
•
Define
– Project
management
– Gantt chart
•
Measure
– Data Collection
– Histograms, sigma
level
– SIPOC
– Gauge R&R
•
Analyze
– Process Capability
– Hypothesis
Testing
– Confidence
Intervals
– Ishikawa Diagram
– FMEA
For more information, call 416.216.1067
– Multivari, Box
Plots
– Analysis of
Variance (ANOVA)
Improve
– Design of
Experiments
(DOE)
– Regression
Analysis
Control
– Statistical Process
Control (SPC)
– Control Plan
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18. Who Participates?
CEO, Director
Directors
Managers
Company-wide
20 to 50%
10 to 20%
1 to 3%
1 out of 10 BB
Executive
Champion
Owner
White Belt
Yellow Belt
Green Belt
Black Belt
Master BB
8 hrs.
40 hrs.
40 hrs.
120 hrs.
240 hrs.
✔
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Lean Management 8 hrs.
Training
Drives LSS as a strategy
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Ensures resources
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Approves projects
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Guides improvement teams
Provides resources and eliminates
barriers
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Identifies and selects projects
Understands the philosophy and
principles
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Proposes improvement ideas
Proposes and participate in
improvements
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Masters basic tools
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Masters lean tools
Masters Six Sigma tools
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Masters LSS specialties
LSS works because everybody participates!
For more information, call 416.216.1067
18
19. Lean Company System
1. System/Process
Design
2. Definition of
Indicators
Improvement cycles
3.Implementation of
System/Process
4.Measurement of
Performance
6. Corrective
and Preventive
Actions
Lean Company
(Improvement
cycles +
benchmarking +
best in its class)
Competent
(Improvement
cycles +
benchmarking)
Adaptation cycles
Reliable
7. Improve and
Innovate
Opportunities
5. Analysis of
Performance
(In control,
improvement
cycles)
Development
(Adaptation
cycles)
PLAN
DO
CHECK
ACT
Comparison to
Best Practices
Start
(Benchmarking)
(Design and
implementation)
For more information, call 416.216.1067
19
20. Design
• Design Methodology
• Prototypes
• Introduction to Manufacturing
• Validation
For more information, call 416.216.1067
20
21. Commercial
• Marketing
– Surveys
– Strategy Development
– Campaign
Development
Sales
◦ Customer Management
◦ Lean Sales Process
◦ Demand Driven Sales
– Price Definition
For more information, call 416.216.1067
21
25. Quality
• Lean quality system
– Lean Documentation
– Quality Deployment
– Quality Plan
– Quality at the Source
– Supplier Certification
For more information, call 416.216.1067
25
26. Implementation
3 to 6 weeks
4 to 6 months
Preparation
Pilot
• Diagnostic
• Hoshin Kanri
Strategies
Box score
• Implementation Plan
• Promotion of LSS
• Define Product/Service Families
• Lean Management Training
•Training
• WB, YB, GB, BB
• Lean Accounting
• Talent Development
• Value Stream Mapping
• Analysis of Opportunities
• Kaizen Events
• Value Office
• Work Cells
• TPM
• Andon & 5S
• SMED
• Kanban
• Standardized Work
• Poka Yoke
• Sigma Kaizen Events
2 to 5 years
Deployment
• Organizational Structure
Value Streams
• Application to Every Process
• Mature Lean Accounting
• Lean Design
• Lean Office
• Lean Logistics
• Lean Service
• Lean Quality
• Culture Change
Knowledge
Habits
Attitude
For more information, call 416.216.1067
26
27. Insurance company
•
Initial situation in car insurance
– 14 – 17 days to pay total loss
– Delivery time 40 – 45 days
– High internal cost per transaction
•
Main actions
– Lean Service training
– Value stream map
– Service cell (capture, valuation, legal, payment)
•
Results
– 24 hours payment for total loss
– Decrease of 75% cost per transaction
For more information, call 416.216.1067
28. Painting Machines
•
Initial situation
– Delivery time 3 weeks + shipping
– Sales only cover expenses (no profit)
– High Inventory
– No Available Capacity
•
Main actions
– Re-Layout
– Manufacturing Cells
– Complete Training System
•
Results
– Delivery time 2 to 3 days + shipping
– Cost reduction 40% (consistent)
– Sales increase 20% average
– Inventory reduction 55%
For more information, call 416.216.1067
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29. Logistic (Pharmaceutical)
•
Initial situation
– Variable Demand
– High Inventory Levels
– Constant Back Orders
•
Main actions
– Delivery Time Reduction (quick set up, cells, tpm)
– Kanban System Implementation in the Value Stream
•
Results
• Total Inventory Reduction from 120 days to 15 days
• Cost Reduction for more than $50 million dollars
• Zero Back Orders
For more information, call 416.216.1067
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34. Upcoming Webinar
Register @
drake-webinars.com
March 19, 12pm EDT
How to Improve Your Safety Training
Through Online Delivery
Presented by: Dan Hannan, Corporate
Health and Safety Director of Merjent, Inc.
and Mitch Diamond, President of
Exponential-Impact, a Drake International
company
For more information, call 416.216.1067
34
35. Free Offer
We’re offering a free 30-minute Consultation about
increasing your organization’s effectiveness through Lean
Six Sigma.
Contact Maysa to take advantage of this exclusive offer!
mhawwash@na.drakeintl.com
416.216.1067
For more information, call 416.216.1067
35
36. Thank You for Attending
For Questions please contact Maysa Hawwash
mhawwash@na.drakeintl.com
416-216-1067
