Module 1
Intro
Key Aspects of Lean and Six Sigma Improvement Methodologies Overview of HBDs Lean Six Sigma Implementation Prior Projects Areas of Focus
Module 1
Intro
Module 1
Intro
The Lean Six Sigma curriculum combines the discipline and analytical tools of Six Sigma with the time-based focus of Lean. Our goal is to build and enhance skills among employees that can improve quality and strengthen management practices across HBD.
Module 1
Intro
The tools and methodologies in Lean Six Sigma are useful not only in LSS projects, but in everyday tasks. These include:
Understanding Customer and Stakeholder Needs Identifying, Analyzing and Presenting Key Business Information Brainstorming on, Deciding upon, and Solving Complex Issues Revising and Simplifying Production-Related Processes Streamlining Administrative Processes and Support Tasks Understanding Variation Managing Cross-Functional Projects
The more you understand what these tools are and the underlying philosophy behind them, the better you will be as an active team member in future projects.
Module 1
What is Lean Six Sigma? For HBD, Lean + Six Sigma = Profit Power!
Intro
Per-Unit Profit = Per-Unit Price Per-Unit Cost; Net Profit = Sales Product Costs Overhead Expenses
Lean Six Sigma offers you the power to transform operations into flexible, efficient plants needed to profitably survive and thrive in a competitive business landscape.
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Intro
From "What Customers Want" Quality Products and Effective Solutions Competitive Prices and Low Cost of Interaction On-Time Deliveries and Reliable Promise Dates Accurate Pre-Sale Information and Post-Sale Services Supplier Chosen And Prices Paid To "How HBD Makes Products for Sale to Customers" Sales and Marketing Effort Product Designs and Technical Specifications Raw Materials and Inputs from Suppliers Production Labor and Conversion Energy General Management and Administration Post-Sale Billing, Collection, and Customer Support Products Manufactured And Business Costs Paid Equals "How HBD Makes Profits to Prosper in its Businesses"
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Productivity Efficiency
Quality
Speed Flexibility
Intro
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Intro
Overproduction: Producing more than demanded or before it is needed, e.g., stored materials or inventories. Inventory or Work-in-Process (WIP): Material between operations due to large lot sizes or long process cycle times. Transportation: Material movements, by definition, add no value to products, as they do not affect form, fit or function. Processing Waste: Unnecessary or inefficient process steps simply add cost and time. Motion: Effort to move workers and machinery or to transport materials adds cost and delay. Waiting: Long changeover times, slow processing times, and materials handling tasks limit opportunities to make on-time deliveries. Defective Products: Items that fail to meet customer specifications are pure waste, e.g., returns, rework, scrap, and warranty costs.
Module 1
Intro
In existence for more than 20 years; at HBD since 2002. Many of its tools and concepts have been around for decades. Six Sigma packages the tools and concepts into a clear and systematic roadmap for process improvement.
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Intro
LSS was introduced into HBD in 2002, first with the Executive Office and General Managers and then locally at the plants
88 individuals in all 17 business locations trained in LSS (at 7/30/07)
Projects have successfully touched both production and backoffice (paperwork) processes
112 LSS projects initiated (as of 7/31/07) plus 29 documented kaizens Over $6.65MM in hard-dollar and soft-dollar savings, cost avoidance, new-revenue opportunities, and working capital improvements
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12
Intro
Cost Avoidance
Regulatory Expenses, Capital Equipment Needs
Capacity Increase
Production Availability, Quick Changeovers, Equipment Utilization
Customer Satisfaction
On-time Delivery, Quotation and Production Lead-time, Quality, Cost (Pricing)
Flow
Process Speed, Travel Distance, On-time Delivery, Lead-time
New Revenue
Revised or New Products
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13
Intro
Helps identify possible projects; Selects / approves projects for launch Formally-trained team leader who guides teams analyses and activities
Project Sponsor
Process owner with responsibility / authority over process under study Accountable for long-term sustainability of projects gains and results
Intro
Ideas; Guesswork Data; Information Root Causes Experiments; Changes Documentation; Controls
KPIV = Key Process Input Variable
Optimized Process
Module 1 Yellow Belt Training
Intro
Define opportunity, project scope, potential benefits and resource needs Determine process map and metrics; Get baseline performance levels; Define customer requirements for success; Display collected data
ANALYZE
Explore root causes of process variation, poor process flow and current underperformance
IMPROVE
Brainstorm and prioritize potential solutions; Pilot-test selected changes; Select and implement preferred solutions
CONTROL
Complete transition back to process owner; Confirm that new process is stable; Document control plans; Identify and transfer best practices
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16
Intro
Tools to be Learned
Cross-Functional Teams Characteristics of Effective Team Meetings Project Charters and Meeting Agendas
Intro
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Intro
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Intro
Takeaways
Intro
Every person has a hand in generating profit and, in turn, job security. Lean Six Sigma is not solely about statistics or SPC (statistical process control) but is a very successful method to enable continuous improvement. Lean Six Sigma provides a powerful set of problem-solving tools and team effectiveness techniques to address complex issues. These proven tools and techniques can be used anywhere and we do mean, anywhere! Lean Six Sigma emphasizes team-based creativity, analytical thinking, and data-driven decision-making.
Module 1 Yellow Belt Training 21