LSSGBModIntrov

MODULE 1 Lean Six Sigma Introduction,7:50,2,Introductions and Expectations,3,Lean Six Sigma Whats in it for me?,Build and develop skill setLearn the LSS methodology used throughout corporations around the globeLead challenging projects for the customer and businessImprove Corporations resultsReceive Senior Management exposure and recognitionApply completed projects toward certification (recognized industry wide),!,4,Ground Rules,Dedicated Class Time here to LEARNProject Focussed here to DELIVER Lean Six Sigma will help you do your job more effectivelyNo cell phones, email, or stepping out for meetings / calls we will have breaks Ask questions stop me if you do not understand This training is for you not meRespect one another, 1 person to speak at a time,Have fun,Have fun,Have fun,!,Content Page,Introductions & Expectations 2Lean Six Sigma Organization12Business Performance Levels & Associated Costs16Lean Six Sigma Overview20Six Sigma Methodology Overview30Summary46,!,6,Learning Objectives,Define Lean and Six SigmaDescribe the relationship between Lean and Six SigmaComprehend how Lean Six Sigma applies to Black & DeckerOutline the DMAIC process and LSS toolkit,Objectives of Introduction,This module is a brief overview of the Lean Six Sigma Awareness on-line courseOpportunity for clarification and/or questions by the Green Belt candidates from the LSSA on-line courseKey ideas and concepts are reviewed, such as, how Lean Six Sigma relates to business objectives, and the methodology behind both Lean and Six Sigma,!,7,Drive an Environment of:Continuous ImprovementAccelerated ImprovementSustainable Improvement,Lean Six Sigma Mission Statement,In Every Part of our Business!,!,Functional Integration,!,9,B&D ADD REGION NAME Business Objectives 3%-5% Annual Organic Sales growth Double Digit Annual Earnings growth Supplement Organic Growth with Financially and Strategically Compelling Acquisitions 25%+ RONA (Return On Net Assets) 90%+ Cash Conversion,UPDATE WITH REGION OBJECTIVESResponsibility of each regional leader,Actualizar con info de Mexicali,10,Business Metrics,LSS Delivers Results Across The Board,Replace with Regional slide for past projects and savings. Responsibility of regional leader,11,E-Deck,Replace with Regional slide for tracking projects and savings, if not using eDeck. Responsibility of regional leader,12,Lean Six Sigma Organization,13,Mike AllanVP Finance / LSSEMEA,Tony MilandoVP Global Ops / Global LSS,Lean Six Sigma Organization EMEA,Leighton Haywood BB,Joanne Faulkner Director LSS(MBB),Jacqueline Rutherford BB,Ladi Olaoye, BB,MBB - Usti,MBB - Perugia,LSS Contact Spennymoor,LSS Contact Maltby,MBB - BBW,MBB - Sourcing,Core (Master) Black Belt Team Leading X-Functional Assignments,Regional Specific - Responsibility of regional leader,May 2006,14,15,Situation : Xiamen facility have 1 BB 3 GB nowTarget : implement 6 sigma and GB culture in 2015 certified 15 GB in FY2015Action : Select trainee Kick off Committee team help to set up project target Learning & practise Test Project show case ReportResult : Issue certification and award,BB -Black Belt, GB -Green Belt,!,LSS Certification Matrix,Esta actualizado?,18,Business Performance Levels and the Associated Costs,19,Business Performance Observations,Sigma Scale of Measure,DomesticAirline Flight Fatality Rate(0.43 PPM),Best-in-Class,RestaurantBills,Doctor Prescription Writing,Payroll Processing,Wire Transfers,Airline Baggage Handling,PurchasedMaterial Lot Reject Rate,IRS Tax Advice(Phone-In),Average Company,A Sigma rating indicates the ability of a process to perform without defects,USA Related,!,20,99% Just Isnt Good Enough,At least 200,000 wrong drug prescriptions each yearTwo short or long landings at major airports each day5,000 incorrect surgical procedures every week20,000 lost articles of mail/ hour Unsafe drinking water for almost 15 minutes each dayNo electricity for almost 7 hours each month,68 wrong drug prescriptions each yearOne short or long landing at major airports each FIVE YEARS1.7 incorrect surgical procedures every weekSeven lost articles of mail/ hourOne unsafe minute every seven monthsNo electricity for almost 7 hours every 5 years,99% defect-free,99.99966% defect-free,3-Sigma Capability (93.32%) Historical Standard,4-Sigma Capability (99.38%) Current Standard,6-Sigma Capability (99.99966%) New Standard,!,21,What is Cost of Poor Quality (COPQ)?,Expenses associated with finding and fixing defects are termed “COPQ” and may include these hidden costs: Failing to meet customer expectations the first time Finding and fixing defects (tampering) Missing opportunities for increased efficiency Overlooking any potential for higher profits Accumulating losses in market share Increasing cycle time Paying labor associated with ordering replacement materials Resulting costs associated with disposing of defects (scrapping waste) Consuming time with “complaint” handling and non-value-added activities,!,22,Lean Six Sigma Overview,23,A systematic approach to identifyingand eliminating waste (non-value addactivities) through continuous improvementby flowing the product at the pull of the customer in pursuit of perfection,What does it mean to be Lean?,!,24,Why use it?,Efficient use of human resources Shorter time to market Shorter response time Shorter sequence time Shorter cycle time Higher quality Higher inventory turns,Lean tools can lead to:,!,25,Lean means speed it applies to ALL processes Slow processes are expensive processes Lean metric is cycle efficiency 95% of the lead time in most processes is wait time To improve speed identify and eliminate the largest time traps using the Laws of Lean,Principles of Lean,!,26,TraditionalProcessComplexPlanningForecast DrivenInventoryExcessive (Buffer)ProductionBatchFlexibilityLong Lead TimeQuality Inspect In,LeanSimple/VisualDemand DrivenAs NeededSmall Lots/SPFMinimal LeadBuild In,Traditional vs. Lean,!,The Evolution of Six Sigma,Six Sigma evolves from a “Quality Goal” to a enterprise wide strategy for business management and improvement,27,LSS Green Belt TrainingMOD 1 - INTRO,Black & Decker (U.S.), Inc., - V1.0, December 2006,28,History of Lean Six Sigma at Black & Decker,Organized for the task Manufacturing, Purchasing initiatives - COF, productivity focus,Focus on Internal Inefficiencies,1998-1999,New Product 6 - drive for end-user CTQs Supply Chain to drive customer CTQs,Begin to Impact the Customer,2000-2002,Focus on overlapping processes Integrate across business processes Leverage Six Sigma for growth Integrate Lean principles,Delight the Customer,2003-2004,Drive Lean Six Sigma as one continuous improvement engine Integrate Lean Six Sigma into Operational Excellence Model Drive Consistency throughout all of operations,Lean Six Sigma,2005+,!,29,Lean Six Sigma Process Improvement Overview,Both tool boxes are very complementary,!,30,Continuous Improvement (CI),Stagnant Thinking:“If you always do what you always did, youll always get what you always got.”Competitive Thinking:“If the other guy gets BETTER, youre going to get LESS.”,!,31,32,Six Sigma Methodology Overview,33,What is Six Sigma?,Six Sigma can be defined as: A five-phase process improvement methodology that uses statistical analysis to drive decision-making A measure of process capability to meet your customers needs,!,34,DEFINE,What is the Problem? What is the Critical to Quality (CTQ)? What does the Customer Expect?,MEASURE,Can I Measure It? How is my process performing?,ANALYZE,What is my current Process? What Are the Root Causes?,IMPROVE,How Can I fix those Root Causes?,CONTROL,How Can I keep those Root Causes in Control, so I dont have to fix them again?,Six Sigma Methodology,!,35,Process,What is Six Sigma?,This relationship tells us how to adjust inputs to optimize results!,!,36,Focus of a project is to solve a business problemAffecting the success of the organizationAffecting costsAffecting Employee or Customer satisfactionImpacting a Customer (external and/or internal)Characteristics of a projectThey are not easily or quickly solved using traditional methodsTargeted to reduce the defect rate to a predetermined percentage over existing performance levelDeliver savings, tangible, intangible or both,The Six Sigma Project,Practical Problem that is Impacting the Business,Six SigmaProject,StatisticalProblem,StatisticalSolution,Improvementand Long Term Control Plan,Practical Solution with Positive Business Impact,!,37,This is not about showing off how smart we are:,POTENTIALXs,Fishbone Analysis Quality Functional Deployment Regression Analysis Pareto Chi-Squared Test ANOVA,CRITICALXs,Focus on Delivering the Objectives and Not the Tools,Deliverables vs. Tools,!,38,Start with the Customer,Identify Key Business Processes,Baseline Performance vs Expectations,Launch 6 Initiatives to Drive Improvements,Fundamentals of 6 Sigma,Who is it?What do they want?,How do we produce thesegoods or services?,How good (bad) are we?What is the opportunity to improve?,Who will lead the effort?What resources will it take?,!,39,Sigma Level23456,% Good69.2%93.3%99.4%99.97%99.9997%,DPMO308,537 66,807 6,210 233 3.4,Greater Resolution - Focus on the Problems,Relationship between % Good, Sigma, and Defects Per Million Opportunities (DPMO),!,40,DPMO and the Bottom Line ($),A high DPMO has a negative financial impact on the companys P&L,P&L is the Profit and Loss StatementHow much did we make by selling our products, less how much did it cost us to make our products.,Sales - Costs = Profit (or Loss),Why should the company fund LSS initiatives?,!,41,Measuring Generated Cash,Net Sales,- Rebates and Discounts,- Cost of Sales,- SG&A expenses,!,42,Maximizing Operating Income,Reduce waste and unnecessary costs!,43,Types of Costs,Cost of Doing Business,But what happens when our processes do not run flawlessly?,!,44,AdditionalCost of Failure,Easily Identified, but only the,TIP of the ICEBERG,Lost OpportunityLess Obvious,Scrap,Rework,Inspection,Warranty,Rejects,Lost sales,Late delivery,Engineering change orders,Long cycle times,Expediting costs,Excess inventory,Lost Customer Loyalty,More Set-ups,Time value of money,Working Capitalallocations,Excessive MatlOrders/Planning,Product Recalls,In Warranty Costs,Litigation,Retraining,Rewriting,Cost of Failure,!,45,DW706 rework line Scrapped plastic flashing Scrapped motors Overtime labor ABR testing,Expedited freight for late supplier shipments Incoming inspection Mfg COF at source plant,Help Desk staff “Lost” hardware Excess software licenses,Manufacturing:,Sourcing:,IT:,Low retention rates Long hiring cycle time Workers Comp Payments,HR:,Product Warranty Late Product Launch New Product Quality Rework,Engineering:,Ineffective promotions Scrapped merchandising materials Pricing reductions,Commercial:,Obsolete Inventory Write-off Distribution Re-work Customer Fines,Supply Chain:,Examples of Costs of Failure at B&D,Service:,Complex network Warranty costs,FAB process # hrs Customer Invoiced at Wrong Price,Finance:,!,46,The Hidden Factory,= Inspection,Cost of Quality,99.99997%,Six Sigma Focuses on Defect Elimination vs. Defect Detection,Six Sigma Process,Input,Customers,Input,Redo,Scrap,Rework,Return,Delay,Customers,92-99%,C,C,!,47,Lean Six Sigma,Six Sigma alone cannot dramatically improve process speed / capital investment,Lean cannot deliver statistical process capability and consistency,Lean Six Sigma unites Process, Quality & Speed,!,48,Module Summary:,Lean is a process improvement strategy to reduce non-value added activities at the pursuit of the customers needs. Six Sigma is a five-phase process improvement methodology that uses data to produce results. Lean techniques are compl