Green Belt Training

County Executive Office

COUNTY OF VENTURA

Lean Six Sigma

GREEN BELT TRAINING
The biggest room in the world is the room
for improvement.
- Japanese Proverb
1


Lesson 1

INTRODUCTIONS

2


Challenges for Government
1.
2.
3.
4.

5.
6.
7.
8.

Not driven by profit
No competitive pressure
Freeing space/staff translates into less power
Decreasing cost can mean decreasing
budgets
or de-obligating funds
Quality normally not a measure
On time delivery not a measure
Often no process owners, info crosses MANY
functional/divisional areas
This is a VERY INCONVENIENT TIME!
4


What challenges do you face when
promoting change?

5

Green Belt Skills


Skills a Green Belt needs to fit within
the context of operations:
– Interpersonal, Communication Skills
– Management Skills
– Analytic Skills
– Facilitation Skills
– Team Development and Building Skills
– Lean Six Sigma Thinking & Tools (incl.
analysis)
6

Welcome and Introductions


– Instructors
– Materials
*Memory Joggers

* Poster

*Tri-fold

*Binder
-Orientation
-PPTs
-Other Tabs
-Vocabulary
-Articles
7

What you will learn


1. About the County’s Service
Excellence Program
2. Principles and methods of Lean, Six
Sigma, and Theory of Constraints
3. How to successfully facilitate an event
8

Syllabus
•
•
•
•


Schedule
Goals and assessments
My expectations of you
Your expectations of us

9

Getting to know you


• Introduce yourself
– Name
– Agency
– Why you are here
– What you hope to get out of this class

10

Four Modes


Hear it:
•Materials
•Lecture

Take it in:
•Questions
•Discussions

Help others:
•Ask questions
•Guide

Use it:
•Model
•Practice
11

Class Agreements


Forgetting is a form of “Learning Waste”

• Have fun!
• Be on time returning from breaks
• Ask questions anytime-this is a learning
experience
• Participate fully in all activities
• The more you participate, the more you get!
• Parking lot – 3 knock rule
• No blackberry “prayers”
12

Lean Six Sigma Terminology


• Lean Six Sigma terms and concepts will
be introduced and reviewed
• Each term will be defined
• Be patient – learn in layers
• Ask questions
Vocabulary Tab

13

Analyze/Improve/Control

Define/Measure/Analyze

Facilitate Kaizen Hand off/Close

Prepare for Kaizen

DAY 1
Lesson 1 –
Introductions
Lesson 2 – SEP
Overview
Lesson 3 – The Big
Picture
Lesson 4 Executive Plans
SIMULATION –
ROUND 1

DAY 2
Lesson 9 – Define
Phase
Lesson 10-

DAY 3


DAY 4

Lesson 20 – Standard
Deviation
Lesson 21–
Waste,Variation
Lesson 22 – Root Cause

Lesson 28 – Team
Dynamics &
Facilitation
Stakeholder Analysis,
Lesson 29 –Quad
Action Plan, Schedule
Report/Briefings
Lesson 11 – Walk the
Lesson 30 –
Lesson 23 – Improve
Process
Hand off, preparing
Phase
Lesson 12 – VOC
the lead to
Lesson 24 – Lean Tool
Lesson 13 – SIPOC
implement and
Kit
report
Lesson 14 –Measure Lesson 25 –
Lesson 31 – Prepare
Lesson 5– Lean 6S Phase
Facilitating
Lesson 15 –
to Kaizen
Overview
Improvement
Lesson 6- Roles & Process maps
SIMULATION – ROUND 2 Lesson 32 – JIT
Lesson 16 – MTS
Training
Resp.
Lesson 26 – Control
Lesson 33– Close
Lesson 7 -Getting Lesson 17 – Data
Phase
Collection
Out
Lesson 27 –
Started
SOP, Comm., Training,
Lesson 8 – Kaizen Lesson 18 – Analyze
Preparing
Lesson 19 – Data Tools & Control Plans
Review
Graduation Briefs
Addendum #4 14

Checking in


• What are your impressions so far?
• What are your key take-aways?
• What made the strongest impression
for you – what is most appealing, what
causes you greatest concern?
• What are the assets/experiences you
bring to the table?

15

Team Exercise


1. We need to intake 5,000 more applications than
last year
2. We need to reduce the amount of time a patient
waits to see the doctor
3. We need to increase cash flow
4. We need to increase our storage capacity
5. Our case-loads are too high
6. We want to increase the number of animal
adoptions
1.
2.
3.

Get in groups, select a facilitator
List 3 strategies your team would use to meet the
challenge – write on easel.
Report out. (Note: Save responses.)
16


Lesson 2

SERVICE EXCELLENCE
PROGRAM OVERVIEW
17


Service Excellence Program
Objective

Encourage a county-wide culture of service
excellence, continuous improvement and
empirically based decision making as a
means of improving quality, consistency,
speed and cost of County Services.

Drivers to Adapt and Change




The obvious – service, service, service
Expect

47% increase in no. of Food Stamp
Applications
35%

increase in CalWorks or Welfare

No.

of Property Assessment Appeals expected to
be 5X greater than prior average
Overcrowding

in prisons

General



increase in demand
for services not matched
by funds to deliver them
19

Traditional Response








Cut hours
Cut people
Cut services
Cut programs
Across the board budget cuts
Hiring freezes
Travel restrictions
The illusion of
numbers


Problem with Traditional
Response


How is the work being done?

Staff overwhelmed trying to
get through the same system
with less people.
Can’t get the outcomes
needed.

How is work designed?
Does it flow?
Is it predictable?
Is it cost-effective?
Do we even know?

COUNTY MISSION


To provide public infrastructure, services and
support so that all residents have the
opportunity to achieve a high quality of life
and enjoy the benefits of a healthy economy.

22

Service Excellence Structure


Board of Supervisors
Mike Powers, CEO
Matt Carroll, Asst. CEO

Agency Executive Team
Deployment
Champion

Service
Excellence
Council

Service
Excellence Office

All Employees
Provides inputs to how to
improve their own jobs and
work areas

Coordinator

Value Stream
Champion

Team
Leaders

Team
Members

Practitioner’s
Council

Belts
24

Breathing Life Into Data


•

Single Application and Comprehensive Site Plan for Discretionary
Processing Resource Management Agency, Fire, Agriculture,
Public Works Agency. Reduces number of separate forms from
31 to 1. Reduces number of pages from 325 to 59. Reduces 872
questions to 110. Reduces duplicated questions from 180 to
0.Green.

•

Electronic Court Documents
Human Services Agency, County Counsel. Saved
the work of 1 FTE to do Social Work. Reduced the number of
court continuances.

•

Irrigation Management
General Services Agency. Reduced water by 50%. Green

•

Permanent Dog Tags
Animal Services. Reduced staff administrative time, cost avoidance of
$35,000 annually.
26


Leading the Pack

27

Vocabulary Review


Deployment Champion – Agency Head – Decides on behalf of
the agency to use CPI as a business strategy. Leads and
directs strategy.
Value Stream Champion – Division Head, Deputy, Manager –
works closely with Deployment Champion. Owns the Value
Streams, accountable to performance of sections. Signs
charter, selects teams. Works with others to remove barriers.
Team Lead – Supervisor or one assigned to lead a process or
project. Works closely with the GB. Implements new process.
SME - Subject matter expert. Team members. Bring their
expertise to the table – create solutions.
Service Excellence Council – Volunteer agency heads who
focus on operational/process excellence.
Practitioner’s Council – County Green Belts who meet monthly to
continuously learn and facilitate CPI events using GB skills.
Green Belt – A person trained in Lean Six Sigma to the extent that
they can facilitate CPI Kaizens.

Vocabulary Review


Cycle Time – The time that it takes to successfully complete the
tasks required for a work process.
Soft Value – The calculated value of time saved from a process
improvement event that is available for redeployment. Does
not affect the “bottom line”.
Hard Savings – The calculated value of any savings that has a
budgetary impact.


What are your
key take-aways?

30


Lesson 3

THE BIG PICTURE – USING LEAN
SIX SIGMA PERSPECTIVE
31

Lean Business Perspective


Perspective gives Meaning and Strategy
Complexity = Specialization = Narrow Perspective /
Barriers

32

View #1 Every Agency has
Customers


Who are your customers? Everybody
has a customer.
•Who

buys it
•Who uses it
•Who requires it
•Two

types: Brokers and End-users

•Example:

License Plate, Grandpa and grandchild red
rider BB gun
33

View #2 – Every Customer gets a
Products


What products do you produce?
•Permits

•Regulations
•Miles

of road
•Tax credits
•Vaccinations
•Probation visits
•Licenses
•Welfare checks
•Treatment plans
•Jobs

Service results in a
product.
Products:
1.Can be counted.
2.It is specific
3.It is a noun
4.You can deliver it.

-Ken Miller

34

View #3 Products Produce
Outcomes


What are the outcomes of your work?
•Healthy

families
•Safe communities
•A fair criminal justice system
•Better communication
•Maintained roads
•Improved fire protection
•Easier access to public services
“Outcomes” are more difficult to measure and improve than
“products”.
35

View #4 All Outcome and
Products are driven by Processes


What are your processes?
•Every

organization is in the business of providing
products to customers.
•Processes
•All

and systems create these products.

Work is a process.

•Process

should flow, and be designed to meet
what the customer’s desires – Create a value
stream
•L6S

methodology is centered around improving
processes not people.

36

L6S term

What is a Value Stream?


A Value Stream are those process steps
that must be taken properly in the
proper sequence at the proper time
to provide the product or experience
that the customer desires.
What are key end-to-end processes
in your organization?
 Do each of the steps provide value
to the customer?


37


What is a Value Stream?

See it! – Organizational Perspective
Focus Area:

COMMUNITY HEALTH

Focus Area Goal: To be the premier health
care provider in the industry.
Objective #1: Schedule surgeries within 24 hours.
Strategy #1: Increase the capacity for surgical
procedures by 40%.
38


What is a Value Stream Approach?
VALUE STREAMS

NON-VALUE
STREAM
•

•
•

Increase the
number of surgery
rooms
Staff up for new
rooms
Upgrade equipment

(Lean Perspective)
•
•
•
•

Scheduling the rooms
Preparing the room,
trays, equip, meds
Prep-ing the patient
Information flow

39

Lean Thinkers


1. First train yourself to filter a problem by
Identifying your Customers, Products,
Outcomes, and Processes – Value Streams.
2. Then you can apply problem solving
through Cycle of 5 Lean Principles and
Cycle of Six Sigma Discipline
3. Your expertise + Lean Six Sigma tools =

solutions
Put it in your mental toolbox!
40

Team Exercise


• Review problems from your previous
exercise
•
•
•

Identify Customers, Products, and Processes
Identify what is of value to your customers
Report out.

41

Vocabulary Review


Product – What is produced at the end of a process. It is a
product if it can be counted, if it is a noun, if it is specific, and
you can deliver it.
Customer – The person who receives a product. There are two
kinds of customer, brokers and end-users.
Lean Thinking – Occurs when one utilizes the principles of Lean to
drive behavior and problem solving.
Value Stream – A process where actions must be taken properly
in the proper sequence at the proper time to create value for
customers


What are your
key take-aways?

43


Lesson 4

EXECUTIVE PLANS – USING
LEAN PERSPECTIVES IN YOUR
ORGANIZATION
44

Strategic Planning Process


– Contains multi-year goals and objectives
– Is a collaborative process (staff, policy
makers, other stakeholders)
– Must result in practical, implementable
uses for it to be valid for the organization
– Requires time and effort in creating it,
updating it, and sustaining its value

45

Working the Plan
Strategic Plan
•
•
•
•
•
•
•

County-wide
Vehicle for integration
Multi-year
Sets priorities
Contains broad goals
Specifies objectives to
achieve the goals
Sets the foundation for
business plans


Business Plans
•
•
•
•
•
•
•

Agency-level
Detailed
Implements goals and
objectives
Allocation of resources
Lists activities and tasks
Lists improvement activities
Shows assignments

46

Integrated Effort


47

Strategic Plan
Components


48

•

What Makes the Plan
“Strategic”?
It is not:


– A list of what we do or a list of current activities –
those elements are in a business plan

• It is:
– A set of goals that moves the county forward in
specified areas. i.e. promotes change in these
areas
– A set of goals that focuses attention on critical
issues that must be maintained or improved for
the County to maintain health, credibility and
stability
– A plan that takes into account major factors that
are likely to affect the county over the next
several years (e.g., fiscal, service demands,
population changes, mandates, etc.)
49

Executive Planning Sessions


• Creates a Strategic Planning if the
agency does not have on.
• Analyzes the objectives/outcomes
from the SP; identifies customers and
products; then selects those value
streams that have the greatest impact
on the objectives. – Creates portfolio.
50

From Planning to Process Improvement


TOP-DOWN
PORTFOLIO
Strategic
Plan
Lean 6
Sigma
Deployment
And
Implementation
Plan
Executive

Planning
Session

Value Stream
Analysis

Get-toExcellence
Plan #1

Projects
Kaizens
JDI

A “Get-toExcellence
Plan” consists
of:
Projects
•Kaizens
•Just-Do-Its

BOTTOM UP
Grassroots
Ideas

Execute

“Begin with the end in mind.” - Deming

51

Vocabulary Review


Executive Planning Session – The portion of strategic planning
where an agencies processes are selected based on their
ability to influence the ability to meet objectives.
Portfolio – A list of process improvement events for an agency. A
product of an executive planning session.
Event – A generic term used when a team gathers around a
problem and develops a solution.
Value Stream – A process where the actions must be taken
properly in the proper sequence at the proper time to create
value for customers.
Value Stream Analysis – The action of reviewing and studying a
process (at a high or detailed level). The product of this
action is a Get to Excellence Plan.
Project – An improvement event that is complex in nature, longer
in duration to develop improvements, usually requiring the
work of a Black Belt and the use of statistical analysis.

Vocabulary Review


Kaizen – A process improvement event that is moderately
complex, requires a team to solve, can be lead by a Green
Belt, and where a solution is believed to be possible in one
week or less.
Just Do It - An improvement that does not need a team to
develop the solution.
Get to Excellence Plan – A product of a value stream analysis.
The GTEP can include projects, Kaizens, JDI’s or other types of
improvements to ensure that the Value Stream is effective
and efficient.


Round 1

SIMULATION

56

Learning Objectives


The Statapult exercises are designed to give
students experience using the methodologies
and tools taught in this course.

Round 1: Current State
Round 2: Future State - Flow
Improvements

57

Simulation Requirements


Lean thinkers hear voices.
1.

Exercise Requirements
Make the exercise work correctly and cannot be
modified

2.

Customer Requirements (Voice of the Customer)
How the customer would like the product and/or service
to function

3.

Business Requirements (Voice of the Business)
How your “Company” functions, internal policies, laws,
regulations

4.

Statapult Requirements (Voice of the Process)
Constraints or capabilities of the tool used

58

Round 1


Current State
This round is intended to give the
champions experience in seeing and
running a current process. It includes
the following phases:
Baseline
 Shoot
 Calculations


59

Baseline


In order to run the simulation, you must
determine the accuracy and precision of the
process in order to set up the target area.
•

•
•
•

•

Position your Statapult
in area designated by Masking
Tape
instructor
Target
Obtain 20 balls
Center
Take 20 test shots, 164
degrees
Mark the landing of
each shot with a piece
of tape
Use masking tape to
mark off target area

12 inches

X

6 inches

Balls are shot
this direction

5 min

60


Exercise Requirements – Round 1
• Each team member will be assigned a
role
• The balls will be marked as a preparation
for shooting and for rework
– Blue dots symbolize inputs needed to
complete a job function and are considered
to be value added to the process
– Red dots symbolize the time and effort
required to fix a problem

• No permanent markings or modifications
can be made to the Statapult or balls
61


Customer Requirements – Round 1
•
•
•
•
•
•

All shots must be fired at an angle of 164
degrees
All shots must land on the floor in the target
area
Pass/Fail data must be collected for each
shot
The balls must be sorted based on either Pass
or Fail
20 passed balls must be delivered to
customer in 5 minutes with no markings
(colored dots)
All data must be collected “real time”
62


Business Requirements – Round 1
• Balls must be transported in batches of 5
• The Statapult must be recalibrated
(remove & reattach rubber band)
between every shot
• Workers should only be concerned with
their assigned jobs
• All shots must originate from the floor
• Must use forms 5O-5LO, RUK-1D-1NG, and
1-T5-L8
• Balls are aligned with blue dot facing up

63


Statapult Requirements – Round 1
• The Statapult settings and structure
cannot be modified
• The Statapult can not be
aligned/modified with any tools, devices
or aids (no tape on the floor!)
• The Statapult can only be
handled/touched by the Shooter
• The Statapult must be placed on the floor

64

Roles


Marker
Shooter
Inspector
Sorter
Customer Liaison
Observer(s)
Take 5 minutes to review what your role is
Take 5 minutes to review what your role is
before the Round 1 shoot
before the Round 1 shoot

65

Round 1 – Layout


Pass Fail
Cups
Sorter
Customer
Target
Observer

Customer
Liaison

x

Inspector

Box of
Marker

Balls

Shooter
66

Round 1 Shoot


Are you ready to start?
•
•
•
•
•

Your Company has a name
Statapult layout is ready
Target area is taped off
Roles are assigned
Role instructions have been distributed
The simulation will start
simultaneously for all teams!
30 min

67

Calculations – Round 1


1. Customer Order (How do you know what they want?)
The amount of balls successfully delivered to the customer

2. Total Balls Fired

(Effort-Quality)

The total amount of balls fired for the exercise

3. Total Failures/Defects (Do customers care?)

______ (1)
______ (2)
______ (3)

The total amount of failures called by the inspector

4. Time to First Delivery (Do customers care?) VOP
The time to make the first delivery to the customer

5. Total Lead Time (seconds)

(Expected response)

Total time to complete the customer order

6. WIP (Work In Progress)

The total amount of balls left at each work area

7. Yield

______ (4)
______ (5)
______ (6)
______ (7)

Customer Order(1)/Total Balls Fired(2)

Lean Metrics: Financial, behavioral, and core-process
measurements that help you monitor your organization’s progress
toward achieving the goals of the lean initiative.
What do these metrics tell us?
68

Exercise: What Went Wrong?


1.
2.
3.
4.

Class exercise
Choose a facilitator
Everyone else, act as the team and observe
facilitator’s technique.
Class learning.

• What went wrong with the process?
• No solutions allowed yet; only problems

10 min

GB’s - WHAT IS YOUR GOAL???
69

Vocabulary Review


Defects – A part, product, or service that does not conform to
specifications or a customer’s expectations. Defects are
caused by errors.
Voice of the Customer – Listening to the customers requirements,
complaints and suggestions and engaging them in your
improvement efforts.
Voice of the Business - Understanding the policies, rules, and
laws that govern an organization.
Voice of the Process – Understanding the system, equipment,
people, or process capabilities and constraints.
Lead Time – The time it takes to complete an activity from start
to finish, it includes batch and process delays. The customer
experiences lead time.
70

Vocabulary Review


Lean Metrics - Financial, behavioral, and core-process
measurements that help you monitor your organization’s
progress toward achieving the goals of the lean initiative.
Work in Process/Progress (Inventory)- The amount or value of all
materials or effort, representing partially completed work.
Yield – A quality measure that measure the amount of rework in
a given process. First Time Yield (FTY) is simply the number of
good units produced divided by the number of total units
going into the process.

71


Lesson 5

LEAN SIX SIGMA OVERVIEW

72

Lean Six Sigma is . . .


Making common sense common
practice
•

A Combination of two schools of thought:
“Lean” - eliminating waste, creating process
steps that add value, is available, adequate,
and flexible
“Six Sigma” - reducing variation to ensure a
standard, quality output; uses scientific
method, utilizes performance measures

Lean Six Sigma is . . .


• More than just improving processes. It is
new way of doing business characterized
by:
customer satisfaction
a culture of continuous improvement
the search for root causes
a scientific approach
and comprehensive employee involvement

74

Lean Six Sigma in Industry


3M
AB Dick
Adolph Coors
Advanced
Micro Devices
Allied Signal
Alcoa
Aerospace
Corp
Abbotts Labs
Apple
Computer
Bank of USA
Beatrice Foods
Bell Helicopter
Boeing
Bristol Myers
Squibb
City of Dallas

Campbell Soup
Chevron
Citicorp
Clorox
Danon
Dow
Fidelity
Intel
Ford
General
Dynamics
GE
HP
Honeywell
Kaiser
Aluminium

Kraft General
Foods
Lear Astronics
Lockheed
Martin
McDonnell
Douglas
Microsoft
Motorola
NASA
Northrop Corp
Pentagon
Parkview
Hospital
Rockwell Int
Rohm and Haas

Seagate
Sony
Starbucks
Star Quality
Texaco
Texas
Instruments
TRW
US Army
US Air Force
United
Technologies
UPS
Xerox

List from Motorola Inc.

75

Lean Government Exchange
Des Moines, Iowa 2009
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•

Iowa
Minnesota
Kentucky
Kansas
Delaware
Ohio
Toronto
Arkansas
Alabama
Nebraska
New Hampshire
South Carolina
Illinois
Oregon
Oklahoma

•
•
•
•
•
•
•
•
•
•
•

Hawaii
Vermont
Georgia
Washington,
DC
California
Arkansas
Colorado
Connecticut
Maryland
Rhode Island
Washington


City of Appleton, WI
County of Ventura,
CA
City of Cape Coral,
FL
City of Fort Dodge,
Iowa

•
•
•
•

Organizations
considering Lean 6 S
•
•

LA DPSS
Shasta County

76

Where is CPI Applied


 Environmental permits / Air Quality /
Wastewater/Floodplains / Landfills / Manure management
 Corrections - Offender Re-entry /Forensics
 Procurement
 Board of Medical Examiners Investigatory process
 Veterans Home Admissions / Medical Appointments /
Medication Administration / Pharmacy
 Patient flow / Hospital discharge/Health facilities
 Human Services processes and services
 Animal Services
 Child Abuse Appeals / Foster Child placement across state
lines
77

It’s scientific!


Y = f (x1, x2,…xn)

Six Sigma
78

TEAM EXERCISE
1.

Review problem from your previous
exercise

2.

Find the critical “Y” and list possible
“x’s”

3.


Report out

79

Cycle of Lean Principles


Seek
Perfection

Establish
“Pull”

Identify
and
Remove
Waste=
SPEED

Specify
Customer
Value

Identify
Value Stream

Achieve
Flow
Lean

80

Knowledge Work

8- Wastes

Product Work

Work not meeting requirements.
Missing information. Rework.

D efects

Scrap, rework, lost capacity due to
mistakes, inaccurate SOP’s.

Too many reports, reviews,
approvals. Batching paperwork.

O verproduction

Running equipment to keep equipment
and people busy.

Waiting for meetings to start.
Information, paperwork and
approvals.

W aiting

Waiting for equipment, people or
process to cycle, waiting for materials
and tools.

Over or under staffing, talents not
utilized, work load not balanced.

N on utilization of


people/talent
Paper- based data vs. electronic
transfers. Routing of unnecessary
approvals/processing.

T ransportation

Long travel distances, unplanned
premium postal.

Excessive backlog of work to be
processed. Too much paper to be
handled, processed or filed.

I nventory

Making what we can instead of what
customers need. High obsolescence
and write offs.

M otion

Repetitive/unnecessary movement
caused by poor ergonomic design.

E xtra or Over

Incapable equipment and processes.
Equipment with unbalanced flow.
81

Walking to deliver paperwork, poor
ergonomics, chasing information.
Unnecessary steps. Too many
handoffs, lack of SOP’s.

Processing

Lean

Waste flags
Takes

too long – people are complaining

Redundant
Process
Time

work – same work being performed

churning – can’t figure out what to do next

spent looking for information, equipment, people

Excessive
Lack


delays - stopping

of supplies or information

Too

much red tape

The

place is a mess – can’t find anything


Lean View of Waste
Learning to see waste

Inspect
Transport
Disconnect

Start

Inspect
Wait

Re-work
Work

Work

Wait

Transport

Work

Finish

FLOW TIME
= Value
Added Time

Reinstall

= Non-Value-Added
Time (WASTE)

Lean
Value-Added time is only a very small percentage of the total Time

83


Traditional Process Improvement vs. Lean
Traditional
Focus

NON Value-added time
NON Value-added time
Time

Small Amount of
Time Eliminated

LARGE

• Improve Value-Added
work steps
• i.e. Better tools, machines,
instructions

• Result: Small time savings

amount
of time saved

Lean Focus
Reduce or eliminate NVA/waste
 Result: LARGE time savings


Time savings have a direct impact on
• Cost
• Capacity
• Schedule
• Flexibility
• Resources
• Etc.

Lean84

Lean Process Improvement


Inspect

Inspect
Transport
Disconnect

Start

Wait

Re-work
Work

Work

FLOW TIME
= Value
Added Time

Wait Transport

Work

Reinstall

Finish
= Non-Value-Added
Time (WASTE)

Value-Added time is only a very small percentage of the total Time
Lean
85


Lean Is . .

.

A War on WASTE!

Lean86

What is “Six Sigma”?


According to the founders of Motorola’s “Six Sigma”
program:
First, a statistical measurement
– Since the 1920's the word 'sigma' has been used by mathematicians
and engineers as a symbol for a unit of measurement in product
quality variation.

Second, a business strategy
– A data-driven approach aimed to get it right the first time.
– This requires having a common focus on operational excellence
throughout the organization.

Six Sigma
87


What is “Six Sigma” Performance?
“We are going to relentlessly chase
perfection, knowing full well we will
not catch it because nothing is
perfect. But we are going to chase
it, because we know in the process,
we will catch excellence.” - Vince
Lombardi

• “Six Sigma” is an optimized performance level
approaching zero defects (3.4 ppm) or 99.99966%
performance.
• It means 1st-time perfect quality (no variation).
We measure!

Six Sigma
88

Three Sigma Capability


Sigma Level

Mean

Sigma/StdDev

USL

3

30 days

5 days

45 days

Voice of the Customer
(Upper Specification Limit):
Issue report < 45 days
Sigma Level=(USL-Mean)/StdDev
Sigma Level=(45-30)/5 = 3

5 days

USL

1σ
30 days

1σ

2σ

3σ

45 days

Six Sigma Capability


Sigma Level

Mean

Sigma/Standard
Deviation

USL

3

30 days

5 days

45 days

6

30 days

2.5 days

45 days

(Upper Specification Limit):
Issue report < 45 days

Sigma Level=(USL-Mean)/StdDev
Sigma Level=(45-30)/2.5 = 6

2.5

USL

1σ
30 days 1 2

3

4 5 6σ

45 days

DMAIC


Cycle of Six Sigma Phases
Monitor Trends
Control Charts
Maintain Metrics
Standard Work

FSM
Lean Tool Kit
Kaizen Event

Define the Problem
Define Scope /
Boundaries

Identify and
Remove
Variation=
QUALITY

Current State Map
Baseline Measures

Root Cause
Analysis (5
Whys)
Fishbone
Run Chart/Control
Chart

Six Sigma
91

Why “Six Sigma”?


Hey, 99% is good enough right?
99%

99.99966% (6 Sigma)

• 20,000 lost postal mail
items per hour

•

7 lost postal mail items per
hour

• 15 minutes of unsafe
drinking water per day

•

1 unsafe minute every seven
months

• 2 long/short landings per
day at a major airport

•

1 long/short landing every
five years

• 5,000 incorrect surgical
operations per week

•

1.7 incorrect operations per
week

•

1 hour without electricity
every 34 years

•

68 wrong prescriptions per
year

• 7 hours of lost electricity
per month
• 20,000 incorrect
prescriptions per month

Six Sigma
92

Quality flags


•

Quality standards not met, or inconsistently met

•

Repeated mistakes

•

Rework required consistently

•

People use work-arounds

•

People get the run-around

•

Unclear definition of processes

•

Unclear definition of expectations

Team Exercise


• Review problems from your previous
exercise
• What type of waste might you find?
• What might be a source of variation?
• Report out
94

Theory of Constraints


Theory of Constraint (TOC) is…Minimizing or eliminating “bottlenecks”

“The slowest vehicle in a convoy sets the pace”

A constraint is anything in an
organization that limits it from
moving forward or achieving its
goal

When the constraint (critical path) is not
progressing, the process is not progressing!

TOC95


What To Do About Constraints
WHERE ARE YOUR RESOURCES FOCUSED?

Define the GOAL. Then…
1. Identify - What’s the constraint?
2. Exploit - Utilize all resources to maximize use of
resource
3. Subordinate - Focus non-constraints towards
supporting the constraint
4. Elevate - Apply Lean
5. Repeat Step 1 - The constraint has probably
moved
(From The Goal by Eli Goldratt)

TOC96

Methodologies – Side-by-Side


Methodology Integration
Methodology
Application

Six Sigma
Reduce variation
Define
Measure
Analyze
Improve
Control
Variation & Quality
A problem exists

Lean
Remove waste
Specify customer value
Phases/
Identify value stream
Principles/
Achieve flow
Steps
Establish pull systems
Seek perfection
Focus
Flow, Efficiency
Waste removal will improve
business performance.
Figures and
Many small improvements
numbers are valued. are better than systems
Assumptions
analysis.
System output
improves if variation
in all processes is
reduced.
Reduced cycle time
Primary effect Uniform process
output

TOC
Manage constraints
Identify constraints
Exploit constraint
Subordinate processes
Elevate constraint
Repeat cycle
Constraints, Bottlenecks
Emphasis on speed & volume.
Uses existing systems.

Process interdependence.

Increased throughput
97

Where are you going?


98

Lean Thinkers


• Once you have a perspective of the
problem and have identified your value
streams, start trying to seeing waste,
variation, and constraints.
• Keep your eye on the “Y” and why that
“Y” is important to the Champion, the
organization and operation.

99

Vocabulary Review


Lean – A process improvement methodology that focuses on the
elimination of waste to improve the flow or speed in a
business process. Lean is a war on waste.
Customer Value – An aspect of a product or service for which a
customer is willing to pay for.
Flow – The movement of product or information during each
stage of a process.
Pull (system) – A way of managing productivity in which the
product or information is only created when it is needed or
wanted down-stream.
Waste – Any activity that takes time, resources, or space but
does not add value to a product or service. In lean there are
8 defined wastes.
Value added time (VA) – Time engaged in an activity performed
that increases its value to the customer. Must be done right
the first time, the customer must be willing to pay for it, and it
does not meet the definition of waste.

Vocabulary Review


Non value added time (NVA) – Time engaged in an activity
performed that does not increase its value to the customer.
Value to the customer is defined: Must be done right the first
time, the customer must be willing to pay for it, and it does
not meet the definition of waste.
Six Sigma – A statistical symbol for a unit of measurement in
product quality variation. Six Sigma strives to eliminate all
defects by reducing process variation.
DMAIC – the Six Sigma scientific discipline of “Define, Measure,
Analyze, Improve, and Control)
Y-f (x) – The output (Y) is a function of inputs or independent
variables (x’s)
TOC – Theory of Constraints seeks to identify bottlenecks and
restructure the rest of the organization around it, through the
use of the five focusing steps.


What are your
key take-aways? (break)
102


Lesson 6

ROLES AND RESPONSIBILITIES

103

Champions


104

Deployment Champions


Your Agency - Roles and Responsibilities
Deployment
Champion

Coordinator
•
•
•

All Employees

Green Belts
•
•

Owns vision, direction, business results
Leads change
Sponsors all Kaizens, Projects, VSA’s

Value Stream
Champion
Team
Leaders
Team
Member

Commissioned by the Executive Leadership to facilitate
Kaizen Events
Does not select processes for improvement

105

Role in Deployment


“Deployment Champions orchestrate Lean Six Sigma Change.
They help leaders target areas for projects and ensure that
Lean Six Sigma practitioners have the support they need to
design projects and for implement resulting change plans.
They track and monitor results.”
- Jim Womack, LEI



VISION – of the future and how to use Lean Six Sigma



PLANNING of Strategically Aligned CPI Events based on
purpose



ASSIGNMENT AND SUPPORT of clear responsibility to
someone for the health of the process.



RECOGNITION of everyone who contributes
106

Value Stream Champions


•
•
•

Value Stream
Champion

Owns Get-To-Excellence Plan
Owns financial results
Removes Barriers
•

All Employees

Team
Member
Green Belts
•
•

•

Team
Leaders

•
•

SME and leaders within their
area of expertise
Work closely with GB during
all phases of Kaizen Event
and Projects

SME participating in
Continuous Improvement
events
Support the Team Leader

Kaizen Events

107

VS Champion and Leads Roles


Value Stream Champions orchestrate change. They
help leaders target areas for projects. They assign
teams and lead the implementation of new
processes. They also track and monitor results and
are accountable for controlling the process.

les • PLANNING
o
nt R

dardme
• ORGANIZING
Stan age
Man ly!
• DIRECTING/DELEGATING
pp
A

• CONTROLLING

108

Team Leads Responsibilities


• Works closely with Green Belt (POC)
• Carries most of the actual “work”
before, during, and after an event
• Selects team members
• Communicates and follows up with
the team members and champions
• Helps develop the deliverables
• Implements the new process
• Reports on the new process
Addendum #5

109

D

ies
ut

Planning a Kaizen

 Identify the project
 Participate in Planning Meetings


Hey George, I thought we
were going to
California!

 Understand what you are committing to
 Meet with belts, Leads re: Lean Six Sigma event
strategy, goals, and measures

 Study the Charter before you sign it
 Is there a business case?
 Who are the stakeholders?
 Ripple effects. – Consider Voice of the Business
(Laws, Regulations, Policies, Internal Controls)

110

D

ies
ut

Planning a Kaizen


 Ensure all key policy decision have been
made. Be a change agent.
 Select a strong team and support, encourage
the team,
 Study and confirm current state metrics with
Belt/Lead
 Discuss goals and control metrics up front
111

D

ies
ut

Organizing a Kaizen

 Communicate with
the team
 Work with the
Managers/Supervisors
of team members to
clear their calendars




Develop the team
Assign Team
Choose open-minded
leads
Stakeholders A/R

 Making value
valuable…
What is your
redeployment plan?
112

D

ies
ut

Directing/Delegating


• During the Kaizen, show up and
thank/encourage/empower the team
• Solve problems, provide direction during
the Kaizen (show up mid-way)
• Leads present the final briefing, Champions
attend
• Identify process owners for any follow up
work

113

D

ies
ut

Controlling the Change


Track any assignments





After the Kaizen is over, you own the results and carry
the responsibility to ensure the change occurs, that it is
effective, to track the stick rate
Report Stick Rate Results (eg. 30, 60, 90, 6-months)
Implement the communication, training, and control
plan

Responsible for Accountability



Take it personally
Be sure Leads/Supervisors have the skills and are
prepared to be and hold others accountable

Look for ways to continuously improve
114


“Your job is to give everyone
in your group personal
accountability for
transforming culture.”
“ High Velocity Culture Change” - Pritchett and Pound

115

Team Members


•
•
•

Value Stream
Champion

Removes Barriers
•

All Employees

Team
Member
Green Belts
•
•

•

Team
Leaders

•
•

area of expertise
and Projects

events

Kaizen Events

116

Team Members aka SME


Be familiar with Lean Six Sigma
Represent your area
Communicate back to your group
Participate fully
Think, think, think
Participate in implementation
planning
• Be a conduit for change
• Be personally accountable – own it!
•
•
•
•
•
•

117

Team Members


•
•
•

Value Stream
Champion

Removes Barriers
•

All Employees

Team
Member
Green Belts
•
•

•

Team
Leaders

•
•

area of expertise
and Projects

events

Kaizen Events

118


What does a Green Belt do?
A Green Belt uses Lean Six Sigma
thinking and tools to facilitate teams to
improve operations.

119

Green Belt Responsibilities


• Use the skills you have learned to conduct Kaizens
• Conduct JIT training (may train YB)
• Conduct Kaizen planning activities with Champion
and Lead - Scoping, goals setting, metrics, and
strategy.
• Assist in writing charters and all L6S deliverables
• Help the team lead to implement the improvementby presenting deliverables in the best possible form.
• Interface with CEO SE office
• Attend Practitioner’s Council
120
1
• Continue to be an active learner and CPI promoter20


What are your
key take-aways? 2*10

121


Lesson 7

GETTING STARTED

122

Storyboard


Addendum #27

123

Start with the Champion


• When you are tapped as a GB…ask:
– What is the anticipated schedule?
– How long does the Kaizen expect to run?
– Is the Champion bought in?

• First meeting
– Email right away and introduce yourself
and schedule a meeting with the
Champion and Lead if already available.
– Walk in ready/know your agenda
125

Tips for working with the
Champion


• Watch the soft stuff
– Does the Champion/Lead seem aligned?
– Do they have a sense of urgency?
– Are they experienced – L6S?
– What is the culture of the
team/department related to change?

• Just bring lined paper to the interview
and transfer to templates later, if they
are green.
126

Good questions to ask


1. What is the problem you are trying to address?
2. What are the potential benefits of solving this
problem?
3. Will you be able to quantify these benefits in
terms of cost savings, cost avoidance, quality,
time, or improved customer satisfaction if you
solve this problem?
4. Do you have the necessary support and
commitment from management/ key
stakeholders to solve this problem?
5. Is the resolution of this problem achievable
given your span of influence (i.e., is the scope of
the project reasonable)?
Addendum #8
127

Good questions to ask


6. What key output variables are needed to
measure project success?
7. Do you have a capable system to measure
each of these key output variables?
8. What key process input variables are you going
to examine to determine the root cause(s) of
your problem?
9. Do you have a capable system to measure
each of these key input variables?
10. Are there any solutions that may be proposed
that you would not consider?
11. Are there any staffing/political/other sensitive
issues that should be addressed before we start?
128

Green Belts Designed a
Roadmap


• Use it every time.
• Go over every item.
• If you partner – be clear about splitting
duties.
• Communicate clearly and often,
especially when getting started.

129

Addendum #2

130

Tips on Facilitation


• Be prepared – know why you are there
• Tell the champion/lead the objective of your
meeting
• Have materials ready to show
• Give an overview of how a Kaizen works
• Be the expert on the improvement process but not
on the problem
• Ask clear and concise questions, based on what
they know
• Be curious and be an active listener
• Take lots of notes
• Keep it honest

131

Tips on Tools
–
–
–
–
–
–
–
–
–
–


Start with Roles and Responsibilities
Charter
Stakeholder Analysis
Discuss VOC, VOB, VOP
SIPOC
Action Plans
Know deliverables and list them for Ch/Ld
Discuss current state metrics and future goals
Begin timeline
Leave every meeting with clear understanding of
next steps
132


Lesson 8

KAIZEN REVIEW

133

Your Kaizen
•
•
•
•


Share your Kaizen options
Discuss scoping and selection
Discuss partnering
Discuss mentors

134


Good Night
See you tomorrow!


Lesson 9

DEFINE PHASE
“I am not remotely interested in just being good”

- Vince Lombardi

136

Objectives:





Activities:

Identify and/or validate 
the improvement

Opportunity.

Develop the business
processes, define the

critical customer

requirements.
Identify what adds value
to the process from both 
the business, process and
customer perspective
(Voice Of the

Business/Customer/
Process; VOC, VOB,

VOP).




Team Charter
Scope and Boundary
Validate and Identify the
business opportunity
Define the Defects
Identify Team members,
validate/develop team
charter, Identify stakeholders
Estimate Project Impact
Identify and map processes
(SIPOC)
Identify Quick wins & refine
process.
Define project goals
Leadership approval (Review)
At the end of this phase
leadership approval is
necessary before continuing
to next phase.

• Tools










Charters
SIPOC Map
Pareto Chart
Action Plan
Kaizen Schedule
Gemba, Walk the Process

138

What is a Charter
•


It is a written agreement between the
Belt, senior management, and the functional
managers.

•

It is a commitment of resources to the project.

•

It details the expected project deliverables.

•

It keeps everyone “on the same page” about
what is to be done, when, and at what costs.

139

PH Clinic Registration and Billing Process

Date Initiated:
Revision Date:

Event End Date:


Event Start Date:

Project Information
ROLE

Phone No.

LAST NAME

FIRST NAME

AGENCY

DEFINE

Department Champion
Value Stream Analysis Champion

Build the
Charter with
the Champion
and Lead.

Team Lead
Subject Matter Expert
Subject Matter Expert
Green Belt
Green Belt
Total Man Hours
Event Type I

Kaizen

Event Type II

Part of GTEP
Business Case

Opportunity or Problem Statement/Business Impact

Goal Statement

Project Deliverables

In Scope

Out of Scope

Value Stream Champion

Date

Be sure you
have the right
team, that the
problem is
scoped, goals,
deliverables
and measures
are clear.

Who puts the charter together?


The Belt and the Champions/Sponsors
• There is no team until the project charter is
approved
• The Champions select from a list of projects
based on a structured project selection process
(at least we hope it’s structured)
• Schedule a Champion orientation. Do your
homework.
• The Champions/Sponsors approve the charter
before the work begins

141

Elements of a Charter


Project Title: Reflects the nature of the
project.
Business Case: Why are you doing the
project? What is the motivation or desired
need for the project? What issues are you
addressing that would not be addressed
otherwise? What are the problems you are
solving with this project? Have there been
any changes in the law or licensing
requirements? Be brief and specific.

142


Statement of the Problem: What is the
problem that you will be solving and for
whom? Use facts and not assumptions.
Select one or two specific issues and
support with good data.

Goal Statement: What are going to be
the project results? What metrics will you
improve? When will the project be
started, and when will it meet the
objectives and deliver the outcomes?
State milestones with deliverables. SMART
Goals.
S – specific
M – measureable
A – achievable
R – relevant
T - timebound

143


Project Scope: Clearly define and be
specific. What are you going to do
and not do? Set boundaries that are
controllable and attainable.
Remember, you can’t save the world or
eliminate world hunger. Be realistic.
Constraints and Assumptions: What are
some things that may limit the project
(time, resources, people)?

144


Project Team: Who will be working with
you?
Stakeholders: Who will be affected by
the project?
Champions: Who are your project
sponsors? Who will approve your
resources? Who will sign-off on the
tollgates?

145

•


Example of a bad
opportunity or problem
statement:
“ It takes too long to process
a purchase order form.”

What

Where
When

Extent

•

Example of a better
opportunity or problem
statement:
“The purchase ordering
process for the County
takes in excess of 30 days.
The problem has existed
for the past year. 85% of
the orders require rework
due to wrong information.
This has resulted in the
postponement of 60
projects in the last 6
months.”
Impact
146

What are the dangers of
working without a project charter?


1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

Scope creep/shifting goals and priorities
Trying to move a monument
Wrong people on the team
No direction
Politics instead of process
Lose of interest
Conflict
No defined goals
Uninvolved leadership
No timeline

147

Charter Tips


• Assist in writing the problem and goals
statement
• Be as specific as possible
• A good time to do stakeholder analysis
• Ask about VOC, VOB, and VOP
• Watch that the problem does not include
causes or solutions

148

Charter Tips


• Be sure goal clearly defines the “Y” and
relates to the problem.
• Be very clear about goals, and in/out of
scope (i.e. more equipment/people, policies?)
• Try to get measurable goals – will help
with control plan development
• “Begin with the end in mind.” (Deming of
course!)
1.
2.
3.

ADMIN TIPS
Empl ID numbers must be included
Complete all tabs before sending to me.
Send it in excel (not pdf) please.
Addendum #9

149

Team Charter - Exercise


Exercise –
•Break up in teams – choose a facilitator. Use the Simulation
as the Selected Process.
– Team 1 – Write the Business Statement
– Team 2 – Write the Problem Statement
– Team 3 – Write the Goals
– Team 4 – Write the Deliverables/In and Out of
Scope
•Let’s read our charter

GB’s What is your goal?

10 minutes

150


What are your
key take-aways?

151


Lesson 10

STAKEHOLDER ANALYSIS,
ACTION PLAN, SCHEDULE
152



• A tool to help you get to know the
people you will be working with.
• Important if the team or members are:
– Total strangers to you
– Total strangers to each other (important if
there is “agency history”)
– If the team is in turmoil or high performing
– Anchor draggers
– See pages 40-44 Facilitation at a Glance!
153

Stakeholder
name/group

Explanation of
current
stakeholder
attitude (List)

Event impact
on Stakeholder
(H = 3, M = 2,
L = 1)

Stakeholder
Level of
influence on
success of
event (H = 3, M
= 2, L = 1)

Stakeholder
Score (H=3, M =
2, L and +=3, 0 =
2, - = 1)


Stakeholder’s
current
attitude
towards event
(+ = 3, 0 = 2,
- = 1)

Action plan for
stakeholder

Addendum #15, 16

154

Sensitive!


• A stakeholder analysis contains
sensitive information and should be
treated with respect
• Do not speak to others about
individuals (except your champion)
• Do not post in Teaming!
155

Kaizen Action Plan


• A The kaizen Action Plan is basically a list of
improvement actions that contains the following
information:
–
–
–
–
–
–
–
–

Item Number
Target reference
Problem
Action
Responsible Party
Dates
Progress
Results
Addendum #11
156

Kaizen Action Plan


• A task or improvement action should NOT go on the
Kaizen Action Plan if:
- The

problem is stated as a personnel issue rather
than a process issue
- You cannot identify what type of waste it is or what
you are trying to improve
- You are writing down a problem that does not
pertain to the process (that goes in the parking lot)
- It takes longer to write it down than to actually
solve the problem

157

Action Plan Tips


• Begin to build it at the first meeting with
the Champ/Lead
• Bring in what you have to the first day
of the Kaizen and introduce it to the
team – encourage them to
continuously think about it
• OK to start with problems and actions
and finalize names and dates later
Addendum #12
158

Kaizen Schedule


• Used to keep everyone on the same
timeline.
• Should be developed in advance so
that the team can hold their calendars
open in advance
TIP: Give yourself several weeks to
complete the Define and Measure stage
and for the team to clear their calendars
and secure space. 3 -4 weeks from the
first meeting is ideal.
You can use your Communication Plan
Template
Addendum #13, 14
159

Exercise


In teams, review the completed Stakeholder
Analysis in your materials. Pick a facilitator.
1. What do you see?
2. What challenges do you anticipate?
3. How would you develop your event planning
and facilitation strategy?
4. Report out.

5 + 5 minutes

160


What are your
key take-aways?

161


Lesson 11

WALK THE PROCESS

162

Gemba/Walk the Process


Means to “GO SEE”
THE FIVE ACTUALS
1. Go to the actual workplace.
2. Engage the people who do the actual
work.
3. Observe the actual process.
4. Collect the actual data.
5. Understand the actual value stream.
163

Why Walk the Process?


• “So it is written, so let it be done.”
– Written instructions do not always reflect reality
– “AS IS” almost never matches what is written.

• Gemba is a tactic to characterize the process
– Via process mapping
– Time value mapping
– Observation documentation

• Actual Walking the process gives one a sense
of scale and scope of the issues.
164

Walking the Process


1. Pretend to be the product or data as it moves from
beginning to end.
2. Talk to employees involved.
3. Record observations about the process.
4. Do not judge or make conclusions.
5. Operate in pairs (one familiar with the process and
one who is not)
6. Take your time
7. Document all methods and deviations and note
a)
b)
c)
d)
e)

What the product or data “experiences”
What people are doing
What machines/equipment are doing
Waste and variation
Any constraints
165

Steps of a Gemba walk


Select a theme for each
walk.


Management





Question the supervisors.
Listen attentively. This is a
learning exercise for the
manager.

See what is happening



Opportunity to speak with
employees “first-hand” vs.
management status reports



Share what you learned as
you walk through the plant.



Opportunity to emphasize
safety, quality



Write a short memo on what
you learned and post it for
others to see.



Determine value and
currency of quality
charts/reports (tracking)



Follow-up to see that progress 
is made.

Gauge organizational
health and culture
166

Sample Questions to Ask


SPONSORS AND SUPERVISORS:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.

What are the keys to your success?
What are your goals?
What is great performance for you?
What measures are used?
What is your organizational structure?
Who are your customers?
What make your product or process unique?
What are some future opportunities?
What are the critical issues?
What problems do you foresee?
How can we help you?
167

Sample Questions to Ask


ALL EMPLOYEES:
1.
2.
3.
4.
5.
6.
7.
8.
9.

How do you determine what to work on next?
Where does your work come from?
How do you know what to do on your task?
How do you determine priorities?
Where does your work go next?
What is great performance for you?
What is your greatest challenge?
How do you know the criticality of your task?
What measures do you uses? What is your cycle time,
quality, and cost of your process?
10. How can we help you?
168

Facilitation Tips


• Don’t judge the answer
• Repeat back to affirm the speaker
• Write down all concerns even if you
don’t agree
• Be curious
• Be detailed
• Be gentle and respectful (this kind of
observation can feel intimidating)
• Thank the worker
169


Lesson 12

VOICE OF THE CUSTOMER

170

VOC


A term used to describe the in-depth process of capturing a
customer's expectations, preferences and aversions.
Voice of the Customer studies typically consist of both
qualitative and quantitative research steps. They are
generally conducted ….in order to better understand the
customer’s wants and needs, and as the key input for new
product definition. (wikipedia)
171

Who are your customers?


• Internal Customers: Whoever is the
recipient or user of your
process/step output.
• External Customers: Those persons
or organizations who purchase or
use your products or services.

172

Types of Customers
Internal


External
Brokers

Transfers the product or information to someone else
who will use it. May act as the agent
to the end user.

End Users
Individuals or groups who personally use
the product.

173

Translations


Information does not always come in the
form of a requirement – a GB works to
translate the VOC to a business requirement:
Voice of the
Customer

After clarifying the
key issues (s) is….

Customer
requirements

Actual customer
statement/comment
.

The real customer
concern, value, or
expectation.

Specific, precise,
measureable
characteristic.

“I hate filling out this
form!”

The form takes too
long to fill out.

The form takes less
than five minutes to
complete.
174

You Try


Class discussion
What questions might you
ask?
Voice of the
Customer
Actual customer
statement/comment

After clarifying the
key issues (s) is….
The real customer
concern, value, or
expectation.

Customer
requirements
Specific, precise,
measureable
characteristic.

“This pizza is no
good.”
“This is too
complicated.”
175


VOC – the VERY BIG point
Use VOC as a

KEY INPUT
when designing
your improvements!

176

Vocabulary review


Charter – A document that guides the work of the team and
demonstrates the commitments of the leadership. Parts of
the charter include title, team members (incl. leaders and
belts), problem statement, goal statement, business case,
goals, deliverables and in and out of scope.
SMART Goals – Goals that have the following elements: Specific,
Measureable, Achievable, Relevant and Timebound
SIPOC – A tool used to document a process at a high level and
show the process from suppliers, inputs to outputs and
customers. Stands for “Suppliers, Inputs, Process, Outputs,
Customers”
Gemba – A means of collecting data and documenting the
value stream by observation of the actual work done in the
actual work place by the actual workers.
177

Vocabulary review


Pareto Chart – A type of chart that contains both bars and a line
graph, where individual values are represented in descending
order by bars, and the cumulative total is represented by the
line.
Action Plan – A list of improvement actions related to the
chartered Kaizen.
Stakeholder Analysis – A tool designed to help you get to know
the team and their readiness for change.
Voice of the Customer – The technique of capturing customers
requirements, needs, wants, and satisfaction as a key input for
driving improvements.
Broker – A type of customer who transfers the product or
information to someone else who will use it.
End user – A type of customer who personally uses the product.
178


What are your
179


Lesson 13

SIPOC

180

SIPOC


Y = f (x)
•
•
•
•
•

SUPPLIERS
INPUTS
PROCESS
OUTPUTS
CUSTOMER
Team will be hunting for Red “X’s”
Addendum #10
181

Purpose


• Highest level map
• Relationship of inputs, process,
outputs, and customers
• Must know your “Y”
• Narrows scope to
examine/investigate
• Helps identify data collection need
182

SIPOC TIPS


• Tell the team what you’re going to
do and why
• Start with discussing your “Y” – a
good charter should have
established that
• Think about your order
• Guide the team on narrowing and
ranking the “x’s”
• Don’t water your houseplants with a
fire hose.

183

Model SIPOC Y?
Suppliers

Inputs

X

Process

Outputs

X


Customers

Y
Y

X

X

X

Y

X
184

SIPOC - Exercise


Need a volunteer!

Exercise – SIPOC for the
Simulation and Class
Feedback

10 minutes

185


What are your
key take-aways?

Whole class = share experience and lessons learned 186


Lesson 14

MEASURE PHASE

187

• Objectives:

• Activities:

 Identify critical
measurements that are
necessary to meet
customer requirements
and develop a method
of collecting data to
measure process
performance.
 Understand the data
calculations and
establish a baseline for
the process being
measured.


 Map process and identify
inputs and outputs.
 Establish Data Collection/
Measurement Plan
 Collect baseline
performance data
 Determine Process
Capability
 Validate measurement
system
 Leadership approval
(Review)
 At the end of this phase
leadership approval is
necessary before continuing
to next phase.


Introductory Tools
• Process Maps
• Metrics Tracking Sheet
Order Mgmt Supervisor

Service lead time = 384 min
Weekly Update

CUSTOMER

Phone Call

Customer call time = 24 min

Phone Call

Order Mgmt
Screen for Acct Mgr

Manual Update

P/T = 3 min
Lost calls= 10%
Volume= 1200

2-5

SUPPLIERS

days

Large
Business
Order Mgmt
Small
Business

4

Customer
Info

Order Mgmt
4

Product
Need

Order Mgmt
4

Pricing

Order Mgmt
4

Home

P/T = 6 Min

P/ T = 6 Min

P/T = 2 Min

Error Rate= 2%
Volume= 800

Error Rate= 0%
Volume= 800

Error Rate= 2%
Volume= 800

2 min

6 min

6 min

2 min

10

20 Orders

Error Rate= 1%
Volume= 800

5 min
3 min

DIST

Shipping
Info

P/T = 2 min

Pick
Pack & Ship

P/T = 120 Min
Error Rate= 1%
Volume= 1200

240 min
120 min

1


Lesson 15

PROCESS MAPS

190

Process maps


• A graphical representation of a process
flow identifying the steps in the process
= the X’s and Y’s of the process and
opportunities for improvement
• Types of process maps
– Linear
– Functional
– Many others

191


Process for Process Improvement - D AIC
M

SPAGHETTI MAP

Number of Handoffs: 18
Total Time: 45 days
Touch Time: 5 days
Waiting 40 Days
Distance traveled: 5000 feet

Process for Process Improvement - D AIC
M

•

•


After implementing an
improvement, you should see
the flow improve in your virtual
“waste walk”
Look for reductions in distance
traveled, total time, and
waiting

Total Time: 8 days
Total Time: 45 days

Touch Time: 5 days

Touch Time: 5 days

Waiting 2 Days

Waiting 40 Days




Information Flow “Circle” Diagram
•Usually

employed for tracing
information or communication flow,
where other maps don’t make as
much sense.
•Create

a circle. Around the
perimeter, place people or steps.
Trace the flow of information
•You

can still measure.

John

Paul
George

Ringo

Penny

Total Time: 8 days
Touch Time: 5 days
Waiting 3 Days

Jude
Yoko
Lucy


Tip for Circle diagram
•Number

your steps
•If one step/person sends to multiple
people, use dotted or colored lines
and designate using number and
letter combinations (i.e. 3a, 3b, 3c)
Paul
John

3c

3a
1

George

3b
2

Ringo

Lucy
Yoko

Jude


Flow Diagram


Swim Lane Process
Map


Exercise – Process Mapping
1.
2.
3.
4.
5.

Model first few steps
Class activity
2 Facilitators (half map)
Class acts as the team and also
observes facilitation technique.
Class Feedback

20 minutes


What are your
key take-aways?

199


Lesson 16

METRICS TRACKING SHEET

200

Metrics Tracking


• Start talking to your Champion early
about metrics.
• What does success look like in
measureable terms?
• Do you have baseline metrics now?

Addendum #18

201

Why Measure?


• Establish the baseline – or current
performance level
• Determine priorities for action – or
whether or not to take action
• Gain insight into potential causes of
problems or changes in the process
• Prevent problems and predict future
performance
• To gain knowledge about the problem,
process, customer, or organization
202

What a measure should do


• Link to goals or objectives
• Provide hard evidence of current
state or progress towards a goal
• Metrics must have a target in order
to provide useful information for
guiding performance
203

Measure Types: X’s and Y’s


“Y” or Output
Measure
• The overall
performance or results
of the process
• Effectiveness measure
• Efficiency measure
• Can be further
downstream (i.e.
profits, customer
satisfaction)

“X” or Process &
Input Measure
•

•

•
•

Quantifies performance at
key points within or start of
the process
Input measures will focus
on how the inputs meet
the requirements of the
process
Can be keys to finding root
causes
Can be used as early
warning to identify and
address problems before
they become serious. 204

Select your metric(s)


• Tools to consider are information
from:
– Charter –What is your “Y”?
– Gemba
– SIPOC – What are the “Red X’s”?
– Voice of the Customer

• The form offers some suggestions –
not all are required!
205

Metrics Selection for your
Kaizen (This is not a test)


1. Get with your partner if you have one.
2. On the MTS– write down what you
understand at this point to be your “Y”
3. Based on that, and any other information
you might have, discuss and select which
metrics you might use at this point.
4. Remember to “begin with the end in mind”.
5. Report out and discuss with the class.

207

Vocabulary review


Process Maps– A graphical representation of a process flow
identifying the steps in the process = the X’s and Y’s of the
process and opportunities for improvement
Process description – An action that starts with a verb to
describe the process.
Distance from the last step – The distance from the last step to
the next process step.
Task time – The time it takes to perform the operation.
Queue (wait) time – The amount of time the product is waiting to
be worked (“the product is sleeping”)
Touch time – the amount of time expended by the employee
working the item.

208

Vocabulary review


Spaghetti Map – A process map that illustrates the physical route
of information or product.
Circle Diagram – A process map employed for tracing
information or communication flow, where other maps don’t
make as much sense
Flow Diagram - A diagram of the sequence of operations
Swim Lanes – A map that shows the sequence of steps by
function and time.
Value Stream Maps - This is a powerful tool for identifying the flow
of information and products. It will highlight bottlenecks and
impediments to flow. It is an excellent way to delineate the
“Current State.”

209

Vocabulary Review


Measure - A quantified evaluation of characteristics and/or level
of performance based on observable data. (Defining a
number to something)
Baseline – A standard by which things are measured or
compared. Often used in current state as a measure for
future state.
Demand - The amount of a particular good or service that a
consumers will want to purchase at a given time.
Staffing – Individuals charged to a specific function.
Overtime - Work done in addition to regular working hours
Output – The end product: final product; the things produced
Productivity - The amount of output per unit of input.
Work in Queue – The amount of work waiting to begin.
Touch Time – Process time. The time a worker spends on a task.
210

Vocabulary Review


Floor Space – The amount of space designated for a process,
people, or product.
Product Travel – The distance that a product moves between
steps.
People Travel – The distance people travel between steps.
5-S Audit – The review of the physical environment for purposes
of increasing flow.
Visual Controls - Various tools of visual management such as
color-coding, charts, schedule boards, labels and markings on
the floor.
Set-up Time - The time required to ready a job to run: to load the
program, load and ready input/output devices, etc.
Handoffs - The transition of any product or information from one
worker/station to another.
211


What are your
key take-aways?

212


Lesson 17

DATA COLLECTION

213

Measure Review


• Collects the opinions of the
experts along with data (if
available, tribal
knowledge)
• Follows a clear
methodology
• Usually begins with some
type of process map
• Process maps generally
delineate the current state
• Process maps can display
X/Y relationships
214

The Process Funnel
X

X = process
inputs

X
X

X


X
X
X
X

X

X
X

Many inputs
enter the
funnel

X’ s
SIPOC and the
hunt for Red X’s
ensures that just a
few Red X’s come
out
X

X
X
215

What do we need to know?


The first step in the creation of any data
collection plan is to decide what you need
to know about your process and where to
find the measurement points.
1. What data is needed to ‘baseline’ our
problem?
2. What “upstream” factors (x’s) may affect
the process – problem?
3. What do we plan to do with the data after
it’s gathered?
216

What are your data sources?


Two types:
1. Existing data – Using historical or current data to
learn about the output, process, or input.
•

This is preferred when data is in a form we can use
and the Measurement System is valid. (a big
assumption and concern. We will discuss more
about MSA later.)

1. New Data – Capturing and recording
observations we have not or normally don’t
capture.
•
•

May involve looking at the same “stuff” but with
new operational definitions.
This is preferred when the data is readily and quickly
collectable. (it has less concerns with measurement
217
problems)

Existing vs. New Data


• Is the existing or “historical” data
adequate?
– Does it truly represent the process/group?
– Does is contain enough data to be analyzed?
– Was it gathered using a capable
measurement system?

• Measurement System Analysis is a
specially designed experiment that seeks to
identify the components of variation in the
measurement.
218


Measurement System Analysis
(MSA)

219

MSA


I measure this
to be .487543
inches. That’s
as accurate as
I can get with
this ruler.

220

Measurement System
Analysis considers the
A Measurement Systems Analysis


•

following:
–
–
–
–
–

•

Selecting the correct measurement and approach
Assessing the measuring device
Assessing procedures & operators
Assessing any measurement interactions
Calculating the measurement uncertainty of individual
measurement devices and/or measurement systems

Common tools and techniques of Measurement Systems Analysis
include: calibration studies, fixed effect ANOVA, components of
variance, Attribute Gage Study, Gage R&R, ANOVA, Destructive
Testing Analysis and others. The tool selected is usually
determined by characteristics of the measurement system itself.
221

Since we are not going
to do that…


Indicators of a Measurement Problem:
1. Lack of Standards
a) Process
b) Calibration
c) Up-keep

2. User-related
a) Multiple techniques
b) Subjective/judgment
c) Consistent/obvious differences in results

3. General/Tool
a) Multiple tools
222

How to Assess Measurement
System Quality


• Talk to the individuals taking the
measurements
• Have a few measurements taken and
compare them to the standard (Blood lab check-in)
• Have other individuals or experts verify the
measurements
• NEVER ASSUME: that the standard is
correct or that computer calculations are
always accurate
223

Should you collect
new data?


• Consider the following:
– Cost
– Time
– Likelihood of follow-up and followthrough with the team

224

Data sampling


• Sample if it is too impractical or costly to
collect ALL the data
• Once you sample, you can use statistics
to draw conclusions based on looking at
part of a population
• Sound conclusions can be made from a
relatively small amount of data

225

Tips about X Measures


• Avoid too many X measures too
soon
• Beware of accepting “proof” too
early (you have not analyzed yet!)
• Use your SIPOC – you have found
red x’s correlate your x measures to
your y

226

What do you do with the data?


You can
do this
BEFORE
you collect
data.

Stratify it – Group the data.
Prepare to Analyze

a) Sort it into various categories in order to
surface patterns and uncover differences in
processes
b) You can understand variation by examining
the differences in values between
subgroups
c) Example: US Census: region, age, ethnicity
227

Data Stratification/Grouping


Consider common factors.
FACTOR
What type

EXAMPLE
Complaints, Defects,
Permit types, Illnesses,
Animals

When

Year, Month, Week, Day

Where

County, Region, City,
Site

Who

Department, Individual
228

Class Exercise


Get in your teams
You have been asked to “belt” a process
trying to reduce the length of time it
takes to see a doctor.
Identify one Output, Process, and Input
measure that you would take to learn
about the problem and the process.
1. How might you stratify the data from the
chosen measures?
2. Will your choices potentially help predict the
“Y”?

229

Data collection plan sample


Objective
(why)

Measures/ Data
Data
collection
(what)
method
(How)

Data
sources
(where)

To
achieve a
positive
reaction
to training.

Survey
Class
Students
question
evaluation
on a scale form
of 1-5

Timing
(when)

Responsible party
(who)

At the end Instructor
of each
session.

230

Train the brain - DATA


231

Vocabulary Review


Existing data – Using historical or current data to learn about the
output, process, or input.
New Data – Capturing and recording observations we have not
or normally don’t capture.
Measurement System Analysis - A specially designed experiment
that seeks to identify the components of variation in the
measurement.
Variable/Continuous Data - Data that could be measure on an
infinitely divisible scale or continuum. There are no gaps
between possible values.
Attribute/Discrete Data - Measures attributes, qualitative
conditions, and counts. There are gaps between possible
values.
232

Vocabulary Review


Data Sampling - is that part of statistical practice concerned with
the selection of a subset of individual observations within a
population of individuals intended to yield some knowledge
about the population of concern, especially for the purposes
of making predictions based on statistical inference.
Stratification or Grouping Data - is the process of grouping
members of the population into relatively homogeneous
subgroups.
Efficiency Measure - The quantity of resources used in producing
the output: time, money, people, materials, energy.
Effectiveness Measure - The number of times or degree to which the
output meets the needs of the customer.

233


What are your
234


Lesson 18

ANALYZE PHASE

235


Objectives:


Identify and validate the root 
cause(s) that assure the

elimination of waste,

 Identify, validate and
prioritize all root causes.



Activities:



Determine the true sources of
variation and potential failure 
modes that can lead to

customer dissatisfaction.
 Determine the impact of all
root causes and refine your
problem statement.

Analyze for VA/NVA/NVAN steps
Identify/Validate root causes
Determine impact of root causes to
process output
Prioritize root causes
Refine problem statement


At the end of this phase leadership
approval is necessary before
continuing to next phase.


Lesson 19

DATA TOOLS

237

The Data Toolbox


(displaying data)
Category
A
B
C
D
E
F
Total

1

1

2

Days of Week
3
4

5

6

Total

Check Sheet

2

3

Flow Chart

Histogram
Paret o Chart of Typ e
250
100
80

150

60

100

40

50

Type

20

0
n
ee
Gr

Count
Percent
Cum %

7

6

238

Fishbone Diagram

Control Chart

4

5

Percent

Count

200

s
an
Be
Pin

150
67.3
67.3

to

s
an
Be

42
18.8
86.1

d
ke
Ba

s
an
Be

15
6.7
92.8

as
H

s
an
Be
h
ig
M
9
4.0
96.9

e
av
tH

s
an
Be

4
1.8
98.7

O

er
th

0

3
1.3
100.0

Pareto Chart

Scatter Diagram

Check Sheets


• Used for organizing and collecting
facts and data
– To make better decisions
– To solve problems faster

• Three common types of check
sheets

239

– Recording check sheets (e.g. data
sheets, checkbook register)
– Checklists (e.g. inspection checklist)
– “Measles” charts (e.g. rental car
customer’s vehicle inspection sheet)

Check Sheet
Examples

Measles Chart

Recording Check
Sheet Days of Week
Category
A
B
C
D
E
F
Total

1

2

3

4

5


6

Total

x
x

x

Compartment Inspection Checklist
Compartment
1-25-0-L
01-35-7-Q
3-120-0-E
01-141-0-M
05-200-1-E
1-45-6-Q
240

Electrical Inspection Mechanical Inspection Final Acceptance

Identify surface defect
locations with an “ X”

Flow Charts


• Used for visualizing a system or
process (sequence of events, tasks,
activities, steps)
– Can be used to identify opportunities for
improvement such as streamlining or
combining operations

• Drawn with standard symbols
representing different types of
activities or operations
241

Flow Charts

242



Frequenc
y

Histogram

Scale

243

Histogram


• A tool used to graphically display data in
groups.
• TO MAKE ONE: Divide the data into classes
– Classes may be Attribute data
• (e.g. M&M’s Red, Yellow, Green, Blue, Brown)

– Or Variable data. If variable, you can divide
the data into ranges
• (e.g. Group 1 is between 0 and 10, Group 2 is
between 10 and 20)

– Count the number of occurrences in
each class and chart on a bar graph
244

Histogram shows you…


• Measure of central location or central
tendency (where is it centered?)
• Measure of variation (spread - how far
does it spread?)
• Measure of shape

245

Histogram


246

Live Example


What should
you always
ask first??

Discuss:
1. What is the shape? What story is this telling you? What questions does it ask?
2. What is our sigma? – What do you need to calculate this?
3. With no USL – how would you get that? (USL-mean/St Dev)

Live Example


Hi st ogr am of Hr gt oDi sp
Normal

Mean
StDev
N

300

-12.03
94.38
876

Fr equency

250
200
150
100
50
0

-400

-300

-200

-100
0
Hr gt oDisp

100

200

300

1.

Histogram indicates that most Dispositions occur at the time of hearing.
The negative mean is an indicator of those that have stipulated prior to
the hearing.

2.

The standard deviation here indicates the variances in customer choice
(stipulate, go to hearing) rather than process variations.

3.

What else do you see? Do you see opportunities? Does this hint at a
process solution?

Live example


Hi st ogr am of Door t o Doc
Normal

250

Mean
StDev
N

69.75
57.09
1867

Fr equency

200

150

100

50

0

-60

0

60

120
180
Door t o Doc

240

300

360

Discuss:
1.What is the shape? What story is this telling you? What questions
does it ask?
2.What questions would you ask re: measurement systems? Why is that
important?

249

Sample Data Analysis


Decide what to measure
• Use existing or new data
• Measurement system analysis
•

Measure = Days to complete
• Collected new data
• Collected 100 samples
• Verified measurement system
•



Goal = Complete in 30 days or less

Are you meeting your goal?
• Is an average of 27.7 or 29.1 days better?
•

Would you like to know anything else to decide if
this performance level is good enough?
•

Standard Deviation: Average
distance from the mean.

Histogram


Site 1
Mean = 27.7
Standard Deviation = 9.3

Mea
n

StDev

StDev

Mea
n

StDev

StDev

1 Standard Deviation
each direction from the
Mean.

Site 2
Mean = 29.1
Standard Deviation = 2.1



Standard Deviation (Precision) –
Average distance from the mean.

Densit y
0.20

0.15

0.10

0.05

0.00

Hi st ogr am of Si t e 1 , Si t e 2
Normal

30
Dat a
40

0.05

50

0.00

Mean StDev N
27.7 9.296 50
29.14 2.109 50

10

Site 2 = 2.1
Low StDev = Low Variation

Normal

20

0.10


0.15

Densit y

Variable
Site 1
Site 2

10

0.20

20

40

50

Variable
Site 1
Site 2

Mean StDev N
27.7 9.296 50
29.14 2.109 50

30
Dat a

These are outcome measurements
of multiple observations.

Site 1 = 9.3
High StDev = High Variation


Is a Standard Deviation of
9.3 or 2.1 better?
•

Standard Deviation is a measure
of variation in a process.

Normal

0.20

Variable
Site 1
Site 2
Mean StDev N
27.7 9.296 50
29.14 2.109 50

0.15

Frequenc
Densit y
y

What does standard
deviation tell you about
the process?
•


0.10

0.05

0.00

10

20

30
Dat a
Days

40

50

Pareto Chart


• 80/20 Rule:
– Pareto chat illustrates the concept that
for any given distribution of the results,
the majority of the distribution (80%) is
determined by the small part (20%) of
the potential contributors or causes.

255

Why use a Pareto Chart


• The purpose of the Pareto chart is to
highlight the most important among a
(typically large) set of factors.
• It often represents the most common
sources of defects, the highest occurring
type of defect, or the most frequent
reasons for customer complaints, and so
on.
256

How do I do it?


See page 122 The Memory Jogger
1. Decide which problem you want to know more about.
2. Choose causes that will be monitored, compared and rank
ordered.
3. Choose the most meaningful unit of measurement such as
frequency or cost.
4. Choose the time period for study.
5. Gather necessary data on each problem category.
6. Compare the relative frequency or cost of each problem
category.
7. List the problem categories on the horizontal line and
frequencies on the vertical line.
8. Draw the cumulative percentage line showing the portion of
the total that each problem category represents.
9. Interpret the results.

257

Construct a Frequency Table

Category
A
B
C
D
E
F
G
H
I
J
K
L
M
N
O
P
Q
Total

Frequency
149
124
120
24
13
12
9
8
6
5
5
4
4
4
3
2
1
493

% of Total
30.2%
25.2%
24.3%
4.9%
2.6%
2.4%
1.8%
1.6%
1.2%
1.0%
1.0%
0.8%
0.8%
0.8%
0.6%
0.4%
0.2%

Cumulative %
30%
55%
80%
85%
87%
90%
91%
93%
94%
95%
96%
97%
98%
99%
99%
100%
100%

Notice: “Frequency” column data arranged in descending order
258

Draw the Pareto Chart


160

100%

140
80%

Frequency

120
100

60%

80

Cumulative %
line

% against
this axis

40%

60
40

20%

20
0

0%
A B C D E F G H I J K L M NO P Q

259

Categories

CLASS INTERPRET


80/20
Pareto Principle

260



Back to our sample
This data was grouped and collected by “site”.
What other ways could you group or stratify data to look for patterns?
Time/Duration:
• Requestor:
• Type:
• Location:
• Size:
• Workers:
•

Month/Week/Day of the Week/Less than a year
Demographic Type/Requesting Agency/
Case/Permit/Crime/Ailment/Job Code/Error type
Region/Geographic Area/Building/Body part
Square miles/Dollar Value/Number of Applicants
Shift/Employee/Years of experience

Pareto Chart
1

2

3

Collect and
Group Data

Sort and
Cumulative

Chart Results

Site
Site 1
Site 2
Site 3
Site 4
Site 5
Site 6
Site 7
Site 8
Site 9
Site 10
Total

# Failed
29
7
4
5
38
53
2
9
0
3
150

Site
Site 6
Site 5
Site 1
Site 8
Site 2
Site 4
Site 3
Site 10
Site 7
Site 9

# Failed
53
38
29
9
7
5
4
3
2
0

Cum.
53
91
120
129
136
141
145
148
150
150

Cum. %
35%
61%
80%
86%
91%
94%
97%
99%
100%
100%


Pareto Chart
1

2

3

Collect and
Group Data

Sort and
Cumulative

Chart Results

Site
# Failed
Site
January
42 December
February
18 January
March
12 February
April
4 March
May
8 May
June
2 September
July
0 April
August
3 November
September
6 August
October
1 June
November
4 October
December
50 July

Total

150

# Failed
50
42
18
12
8
6
4
4
3
2
1
0

Cum.
50
92
110
122
130
136
140
144
147
149
150
150

Cum. %
33%
61%
73%
81%
87%
91%
93%
96%
98%
99%
100%
100%


Scatter Diagram


• Used to determine if a relationship
exists between two factors.
– Will not prove cause-and-effect
relationships

• Enables teams to test hunches
between two factors
– Examples:
• Ice Cream Sales as they relate to outside
temperature
• Storks and babies

264

Plot Paired Observations


Factor B

3
2
1
0
0

1

2
Factor A

265

3

Interpret the Diagram

Circular, no relationship

Narrow band, direct relationship
2
Factor B

Factor B

3
2
1

1

0

0
0

1

2

0

3

0.5
Factor A

Factor A

Wide band, inverse relationship

Factor B

3
2
1
0
0

1

2
Factor A

266


3

1

Control Charts


• Doesn’t really control anything.
• Used to analyze variation in a
process
– Attribute (count) based
– Variable (measurement) based

• You can determine if variation is
inherent in the system (common
cause) or caused by an assignable
event (special cause)
• Statistics-intensive

267

Let’s look at one


I -MR Char t of Ty peYDat a by Ty peXName
Secured

I ndiv idual Value

600

1

UCL= 553.5

450
_
X= 323.1

300

LCL=Lower Control Limit

150
1

1
11

1
1
1

1
1

0
1

1

1

400

1
1

300

177

200

1

1

1

265

1

1

353

441
O b se r v at i o n

1
1
1
1

1

1
1
1

529

617

705

793

Unsecured

1

1
1

1

LCL= 92.7

1

1

1

1 1
1
1
1
1
11

1
1

1

89

Secured

M ov i n g Ra n g e

UCL=Upper Control Limit

Unsecured

1

11

1

1

1
1
1

1

1
1 11
1
1 1

1

11
1

1

1
1
1

1
1
1

1

1

11
1
1

1

1
1

UCL= 283.1

What should you
always ask first??

__
MR= 86.6

100
0

LCL= 0
1

89

177

265

353

441
O b se r v at i o n

529

617

705

793

1.A

process is in “statistical control” when not affected by special causes and all
points fall within the control limit and are randomly dispersed around the
average.
2.In control does NOT mean it meets a product or service need. It just means
that the process is consistent.
3.Don’t confuse control limits with spec limits – spec limits are about the
customer, control limits are about variation.
268



Back to our sample
Site 1

Densit y
0.20

0.15

0.10

0.05

0.00

Control Chart

Site 2

Site 1

10

Normal

0.20


20
40

0.05

Site 2
50

0.00

10

Mean StDev N
27.7 9.296 50
29.14 2.109 50

Normal

0.10

30
Dat a

Densit y

0.15

Variable
Site 1
Site 2

20

30
Dat a

40

50

Variable
Site 1
Site 2

Mean StDev N
27.7 9.296 50
29.14 2.109 50

Control Charts tell you:
Is Your Process “In Control”
• Mean, Upper Control Limit, Lower Control Limit (3 Standard Deviations)
• Is variation Common cause or Special Cause?
• Special Cause – Root cause analysis (fix these first)
• Common Cause – Process improvement
• If process is in control, 99.7% of outcomes will be within “behavior limits”
• Process Improvement improves the average and reduces the behavior limits

Out of control – Special
Cause


• A control chart demonstrates special
cause variation if:
– Points are outside of control limits
– Increasing/decreasing trends ( trend = 3 or
more)
– Cycles

• To reduce special cause variation:
– Find assignable cause
– If appropriate, flag it for action to prevent it
from recurring
• i.e. SOP, Mistake-proof
– Remove it from the data set and run again

270

In Control


• If no out of control conditions exist,
then the process is in control
• Process demonstrates common
cause variation
– Normal variation
– Due to the nature of the universe

• To reduce common cause variation,
change the system
– New equipment, new methodology
271

Cause and Effect Analysis


• Aka Fishbone Diagram
• Breaks problems down to bite-sized
pieces
• Displays as many possible causes in
a graphic manner
• Shows how causes interact
• Follows brainstorming rules
272

Fishbone Diagram
Suggested
Causes:

Main Cause I


Main Cause II

Man
Method

Machine
Material

Measurement
Mother

Nature

Problem

Main Cause IV
Main Cause III

273

Main Cause V

Group Exercise


1. Break up in teams
2. Choose a facilitator
3. Construct a fishbone diagram
a. Team 1& 2 – Y = Misses the target
b. Team 3 & 4 – Y = Takes to long

274

Vocabulary Review


Histogram- A tool used to graphically display data in groups.
Central Tendency – A measure that tells us where the middle of a
bunch of data lies. The three most common measures of
central tendency are the mean, the median, and the mode.
Spread- The simplest measure of spread is the range, expressed
either as the biggest and smallest number in the data (e.g. 6174), or as the difference between the biggest and smallest
(e.g. 13).
Shape - For distributions summarizing data from continuous
measurement scales, statistics can be used to describe how the
distribution rises and drops.

Normal Distribution- Variable data that clusters about an
average and is symmetrical. When graphed, a normal
distribution appears as a bell-shaped curve. In-control
processes yield a normal distribution.
275

Vocabulary Review


Positive Skew- A distribution is positively skewed when is has a tail
extending out to the right (larger numbers).
Negative Skew- A negatively skewed distribution has an
extended tail pointing to the left (smaller numbers) and
reflects bunching of numbers in the upper part of the
distribution with fewer scores at the lower end of the
measurement scale.
UCL- Upper control limit. A control limit indicating the boundary
for the maximum permissible values.
LCL- Lower control limit. A control limit indicating the boundary
for the minimum permissible values.
Special Cause Variation – A source of variation that causes a
fundamental change in a process. Special causes distort a
normal distribution and are undesirable.
276

Vocabulary Review


Common Cause Variation – A source of variation that is normal
and expected. Common causes are predictable over time
and yield a normal distribution.
Cause and Effect Analysis – A diagram that allows the team to
identify, explore, and graphically display, in increasing detail,
important possible causes related to a problem or condition
to discover its root cause(s).
Scatter Diagram – A diagram used to determine whether a
qualitative relationship exists between two continuous or
discrete variables.
Check Sheet – A data tool used for organizing and collecting
facts and data. Three common types of check sheets are
Recording check sheets, Checklists, and “Measles” charts.

277


What are your
key take-aways?

278


Do you feel confident about starting
your Kaizen?
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

Contact your Champion
Start Charter
SIPOC
Action Plan,
Schedule
Walk the Process
Metrics Tracking Sheet
Data Collection
Display Data (Data tools)

279


Thank you and
see you next month!

Elaine – 658-4342
Paul - 654-3938

Call your mentor right away – they are
there for you!
280


Day Three

WELCOME BACK!
KAIZEN BRIEFS
281

A Little Review
Team 1:
Team 2:
Team 3:
Team 4:


TEAM EXERCISE
Slide 18-55
Slide 72-132
Slide 136-189
Slide 190-272

282


Lesson 20

STANDARD DEVIATION

283

Now that you have data


• Did you keep an eye on it as it came in?
What was the measurement system?
• Evaluate the data based on your
objective.
– Does it confirm the problem?
– Does it establish a baseline?
– Does it provide evidence for or against a
cause?
– Do results meet the target?

• Draw initial conclusions and plan follow up
– Refine the charter
– Plan for further root cause analysis

284

Do you need to refine the
charter?


•
•
•
•

You have researched the situation.
You have secured voice of the customer.
You have collected and analyzed some data.
Ask/do:
1. Is the Problem Statement still valid?
2. Include your measures in the charter.
3. Do you need to refine the goal?
4. Do you need to expand or narrow the scope?
5. Be sure to review all the findings with your
Champion(s) and Lead(s).
285

Review Histogram


We can characterize data displayed
on a histogram in three ways:
1. Measure of location (center or middle)
2. Measure of variation (spread or width)
3. Measure of shape (What does it look
like graphically?)

286

Review Averages


Measures of Location:
– Mean – the average of the population
or sample (sum of all values divided by
n or N)
– Median – the middle of the population
or sample (50% of all values fall on
either side of this value)
•
•

The middle value if n or N is odd
The average of the two middle values if n
or N is even

– Mode – the most frequently occurring
value

287

Standard Deviation


A measurement of variability or diversity used in
statistics. It shows how much variation or “dispersion"
there is from the "average”. A low standard
deviation indicates that the data points tend to be
very close to the mean, whereas high standard
deviation indicates that the data are spread out
over a large range of values.

288

Standard Deviation


Why we care
about standard
deviation.

Example of two sample populations with the same mean and
different standard deviations. Red population has mean 100
and SD 10; blue population has mean 100 and SD 50

289

Sigma
• σ or s
•
•
•
•


- The statistical symbol for “standard

deviation”
Six sigma = 99.99967 or 3.4 DPMO
Allows for consistent format for comparing
different processes
Based on understanding the customer
requirements
Derived from DPO or DPMO
Formula to calculate Sigma = (USL-Mean)/StdDev or
Use the 6-Sigma Conversion Table

290

Vocabulary


Mean – the average of the population or sample (sum of all
values divided by n or N)
Median – the middle of the population or sample (50% of all
values fall on either side of this value)
Mode – the most frequently occurring value
Standard Deviation - A measurement of variability or diversity
used in statistics. It shows how much variation or “dispersion"
there is from the "average”. A low standard deviation
indicates that the data points tend to be very close to the
mean, whereas high standard deviation indicates that the
data are spread out over a large range of values.

291


What are your
key take-aways? (Break)

292


Lesson 21

WASTE AND VARIATION

293

Process for Process Improvement - DM AIC


Objectives:


Identify and validate the root
cause(s) that assure the

elimination of waste,

 Identify, validate and
prioritize all root causes.



Activities:


Determine the true sources of

variation and potential failure
modes that can lead to

customer dissatisfaction.
 Determine the impact of all
root causes and refine your
problem statement.

Analyze for VA/NVA/NVAN steps
Identify/Validate root causes
Determine impact of root causes to
process output
Prioritize root causes
Refine problem statement


At the end of this phase leadership

See Waste


Now you and the team have:
1.A charter, goals
2.A Current state map
3.Gathered data, ran some stats
Now you want the team to see the
process and information and analyze
it through LEAN EYES…this means
SEEING WASTE!
295

Knowledge Work

8- Wastes

Product Work

Work not meeting requirements.
Missing information. Rework.

D efects

Scrap, rework, lost capacity due to
mistakes, inaccurate SOP’s.

Too many reports, reviews,
approvals. Batching paperwork.

O verproduction

Running equipment to keep
equipment and people busy.

Waiting for meetings to start.
Information, paperwork and
approvals.

W aiting

Waiting for equipment, people or
process to cycle, waiting for
materials and tools.


N on utilization of
people/talent

WASTE/VARIATION
TEAM EXERCISE

Paper- based data vs. electronic
transfers. Routing of unnecessary
approvals/processing.

T ransportation

Long travel distances, unplanned
premium postal.

Excessive backlog of work to be
processed. Too much paper to be
handled, processed or filed.

I nventory

Making what we can instead of
what customers need. High
obsolescence and write offs.

Walking to deliver paperwork,
poor ergonomics, chasing
information.

M otion

Repetitive/unnecessary movement
caused by poor ergonomic design.

Unnecessary steps. Too many
handoffs, lack of SOP’s.

E xtra or Over

Incapable equipment and
processes. Equipment with
unbalanced flow.

Processing

Analyze for VA/NVA steps


•

Value added time (VA) – Time engaged in an activity
performed that increases its value to the customer.
Must be done right the first time, the customer must
be willing to pay for it, and it transforms or shapes the
material or information.

•

Non value added time (NVA) – Time engaged in an
activity performed that does not increase its value to
the customer

•

Non value added time (NVA) but ESSENTIAL - Meets
the definition for NVA time, but cannot be removed.

297

Exercise


Value-Added and Non-Value-Added work
Non Value-Added Activities

Value-Added Activities




An activity that transforms or shapes
material or information
Customer wants it
Done right the first time (no rework)





Activities that consume resources but create
no value in the eyes of the customer
Pure waste
If you can’t get rid of the activity, it turns to yellow

Non Value-Added – Essential Activities


20 minutes

1.Pick



Required (regulatory, customer mandate, legal)



E

Activities causing no value to be created but which cannot be eliminated
based on current state of technology or thinking
Necessary (due to non-robustness of process, currently required; current
risk tolerance)

All together:

3 facilitators
2.1st and 2nd Facilitator – Work with team to identify VA/NVA/NVAE half
map each
3.3nd Facilitator – Observe technique (tools and facilitation)

Facilitation Tips
•


The team may argue about value and waste because
of shame, stubbornness, or fear...or they still don’t get it.
– Let them know seeing Waste and NVA steps is not
necessarily the decision, but a point of discussion.
You are in analyze phase, not improve.
– No decisions will be made without consensus of the
team and you will hear out all concerns.
– Your job is to ensure that the improvements are
“safe” – will not violate laws, policies, or regs.
– Encourage BOLDNESS!

299

Review Comparison of
Variation Types


Special Cause

Common Causes

Special causes, for example, could result
from someone tripping over the shooter
when the gun is fired.
300

Common Cause Variation
Overview


• Usually part of the process
• Acting totally at random and
independently
• Root causes are in the key elements
of the system

301

– Slight variations in raw materials
– People
– Slight machine vibration
– Environment

Special Cause Variation
Overview


• Caused by a special abnormal activity
resulting in an unexpected change in the
process output.
– Defects in materials
– Untrained operator
– Programming error

• The effects are intermittent and
unpredictable.
• All processes must be brought into statistical
control by first detecting and removing the
special cause variation.
302

Reducing Variation
• Eliminate special cause variation.
– By isolating root causes and
controlling processes

• Reduce common cause variation.
– By improving the system

• Anticipate variation.
– By designing robust processes and
products
303


Control Charts and SPC


• Control charts are an important part
of Statistical Process Control (SPC).
• SPC is the use of statistical methods
to:
– Detect the existence of special cause
variation in a process.
– Detect special cause and implement
controls to eliminate future occurrences.
304

Control Charts


Control charts are simple run charts with
statistically generated limits!
Zone A

105

UCL

104

Zone B

103

Zone C
102

Center Line

101

Zone C

100

99

Zone B

98

LCL

97

Zone A

96
1

305

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

Special Cause Variation


• Out of control conditions are frequently
detected by the extreme point
condition
Extreme Point (1 Point Beyond UCL or LCL)

UCL

CL

LCL
306

2 Out of 3 Points in Zone A or
Beyond

UCL

A
B
C
X
C
B
A
LCL

Note that the out of control point is always circled


Process Shift (7 Points in a
Row on one Side of
Centerline)

Trend (7 Points in a Row Steadily
Increasing or Decreasing)

UCL

UCL

CL

CL

LCL

LCL

Out of Control Conditions:
Trends & Shifts
307

Out of Control Conditions:
Oscillation
UCL

Oscillation
(14 Successive Points
Alternating Up and
Down)

CL

LCL

308


Takeaways


• Variation in processes may be due to
either common causes or special
causes.
• Control charts measure the process and
identify special cause variation.
• Correct and remove special cause from
your data set.

309


What are your
key take-aways?

310


Lesson 22

ROOT CAUSE

311

Root Cause


Why find the root cause of a defect?
 Eliminate the root cause, not the
symptom
 Problem doesn't show up again

Corrective action must:
 Ensure that the error is physically
prevented from occurring again
 Prevents a defect loop
312

Fishbone Diagram
Suggested
Causes:

Main Cause I


Main Cause II

Man
Method

Machine
Material

Measurement
Mother

Nature

Problem

Main Cause IV
Main Cause III

313

Main Cause V

Problem: Lincoln memorial
deteriorating at a high
rate.
1.
2.
3.
4.
5.


5-WHYS: Determining
Root Cause

Why: We wash this
memorial more than the
others.
Why: Bird droppings make
it unsanitary for tourists.
Why: Birds eat the Spiders
that gather in masse.
Why: Spiders gather to eat
the flying midges that
swarm.
Why: Midges swarm
around the bright, warm
lights that are turned on at
dusk.

Answer: Delay turning on the
lights for one hour.


What are your
key take-aways? 2*5

315


Lesson 23

IMPROVE PHASE

316


Process for Process Improvement - DMAIC
• Objectives:

• Activities:

 Identify Potential solutions
 Map out “TO BE” process
 Develop an
implementation Plan
 Pilot solution
 Prepare a Risk Assessment
(FMEA)

 Brainstorm potential solutions
using Lean Toolkit.
 Evaluate and select best
solution.
 Identify solution impacts.
 Produce “to be” process
maps and present
implementation plan.
 Communicate solutions to all
stakeholders
 Leadership approval (Review)
 At the end of this phase leadership

Facilitation Tip


• Ask team to abandon assumptions
and consider ALL possible solutions
• Narrow, screen, and select best
solution possibilities (what tools?)
• Understand and articulate the best
practices for the workflow
318


Lesson 24

LEAN TOOL KIT

319

Lean Tool Kit
•
•
•
•
•
•

Error-proofing
Push/Pull
Set-up Reduction
5-S
Cellular Work Processing
Work Standardization


Error Proofing (Poka Yoke)


Poka-Yoke is a technique for avoiding
simple human error at work.
Poka-Yoke stops errors before they become
product defects!

Introduction to Poka-Yoke


• Shigeo Shingo invented the Japanese
concept called poka-yoke (pronounced
POH-kah YOH-keh).
• Poka-yoke means to mistake proof the
process.
– The essential idea of poka-yoke is to design your
process so that mistakes are impossible or at least
easily detected and corrected.

322

Types of Error Proofing


Creating quality at the source through error proofing
 Types of error proofing:
Make it impossible to create error
Make it harder to create error
Make it obvious the error has occurred
 Examples of error proofing in a hospital
Banned abbreviations as error proofing
Computer systems as error proofing
Preventing surgery errors through error proofing


Daily Checklist
1) …..
2) …..
3) …..
4) …..

Mistake Proofing Examples

325


Other Poka-Yoke Examples


Gas pumps are equipped with hose couplings
that break-away and quickly shut-off the flow of
gasoline.
326

Mistake vs. Defect
MISTAKE
An incorrect, unwise, or
unfortunate act or
decision caused by bad
judgment or a lack of
information or care

$$$


DEFECT
A failing, or flaw,
especially one that still
allows the affected item
to function, however
imperfectly

Mistakes, however small, can lead to defects
Mistakes, however small, can lead to defects
which lead to rework and increased cost
which lead to rework and increased cost
327

Cost of Poor Quality (COPQ)


PREVENTION

Before it Happens

IN-PROCESS
DETECTION

END OF PROCESS
INSPECTION

Before It
Escapes Your
Process Step

After the Fact
Before it Gets to
Your Customer

CUSTOMER
REJECTION

Too Late!

• The sooner we can catch errors, the easier and less
costly it is to fix them.
• CPI helps minimize COPQ.
328

Push & Pull System


 Pull system is a flexible and simple method of
controlling/balancing the work flow of resources
Eliminating waste of handling, storage, expediting,
obsolescence, repair, rework, facilities,
equipment, excess inventory (work-in-process)
 Pull system consists of:
– Production based on actual consumption
– Small lots
– Low inventories
– Management by sight
– Better communication

Using Kanban


What is Kanban?
– A Lean approach to managing
materials
– A “signal,” a “card,” or “sign”,
– Indicates when it is time to order more,
from whom, and in what quantity.

Kanban can be used to pull
materials from a central hospital
supply room or stockroom to the
point of use.

Flow of Supplies


Batch and One Pc Flow Processing:

10 minutes

10 minutes
10 minutes

Lead Time: 30++ minutes for total order
•


Continuous Flow
Process
A

“process one, move one”
Process
B

Process
C

Lead Time: 12 minutes for total order

Setup Reduction


•

Definition: The time between the last good piece off the
current run and the first good piece off the next run.

•

Before improvements, basic setup tasks and related time
breakdowns:
Percent of time of changeover
(Traditional Method)
30%

Preparation, after-process
adjustment, checking, storing
and moving materials, parts,
and tools
Removing and
mounting of parts and
tools
Machine measurements,
settings, and calibrations

50%

5%
15%

Trial runs and adjustments

Procedures for Setup
Reduction


SR can be conducted according to the following steps:
1.Study the setup process (may use video taping)

2.Classify setup operations into waste, internal setups, and

external setups:
•
Waste – Operations which do not add value
•
Internal Setups – Operations that can only be performed
while the machine/process is down
•
External Setups – Operations that can be performed
without shutting down the machine/process
3.Eliminate the waste; Convert as many internal to external
setups as much as possible


Example of Setup Analysis Chart
Setup Analysis Chart Total = 133
SEQ
#

Element
Description

Current Method
Internal External Duration

Improving
Idea

Proposed = 40
Proposed Method
Internal External Duration

Prep/Sched

x

20

X

20

Get

x

2

X

2

Move

x

10

X

10

Set aside

x

1

X

1

Get

x

2

x

2

Install

x

5

x

5

Check

x

5

x

5

Adjust

x

25

x

25

calibrate

x

60

Trial run

x

3

x
x

60
3

Comments

5-S
Visual Management


Cleanliness becomes more important when
godliness is unlikely.
- P.J. O’Rourke

336

5-S


• Can anyone walk into a workplace
and visually understand the current
situation, in 10 seconds or less?
• Does everything have a place and
is everything in its place?

337

The Goal of Visual Workplace


•

Single-mindedly eliminate “information deficits”

•

Minimize waste associated with not knowing:


Searching, asking, waiting, retrieving and
reworking



Visual Cues allow you to assess a designated
workspace immediately, making the absence of
any item obvious at a glance



Visual Cues make identifying an item and
designated storage space quick and easy

Benefits


Eliminates Waste

339

Benefits


Readily see small problems before they
become big problems.

340

Benefits


Anyone can step in.

341

Elements of a 5S Program
 Sort Remove from the workplace all items that are not
needed for current operation.
 Set in Order/Straighten Arranging needed
items so that they are readily accessible and labeled so
that anyone can find them or put them away.

 Shine The key purpose is to keep everything in top
condition so that when someone needs to use something,
it is ready to be used

 Standardize The standard should be easily
understood and easy to communicate (i.e. visual controls).

 Sustain Implementing solutions to address the root
causes of work area organization issues. All employees
must be properly trained and use visual management
techniques


5-S


Sort/Scrap
• Eliminate what is not needed.
• Use a Red-Tag system
– Ask Why do we need this?
– Where is it used?
– Take red-tagged items to a quarantined
area before discarding
• Take a “before” photo
• Dispose all items in accordance to your
policies and record all disposed items
343

5-S


Simplify/Straighten
• A place for everything and everything in its
place.
• Marked places, shadow boards, labels
• Decide Min and Max levels of products
– Keep lead times in mind
– Kanban system

• Set the standard for what is needed
344

5-S


Sweep/Shine
•
•
•
•

Clean and find a way to keep it clean
Prioritize Safety, Quality, Reliability
Assign responsibility
Discuss accountability

345

5-S


Standardize/Systemize
• Develop common methods and work
practices.
• Create the rules
• Develop a stable platform for improvements
• Use a Kanban

346

5-S


Self-Discipline/Sustain
•
•
•
•
•

Develop good habits, look for continual
improvements.
Maintain the Standards with no deviation
Create a 5-S Scorecard or Checklist
Self-audit
Most difficult step

347

5-S LEADERSHIP
•
•
•
•
•
•
•
•
•


Visualize the standard
Goes to work areas (Gemba!)
Welcomes problems as opportunities to
improve
Holds confirmation meetings
Checks up on standards
Creates or approves a problem escalation
process
Creates a culture of accountability
Does not accept deviation from the standard
Celebrates and communicates success

348

Cellular Work Processing


 Linking of manual and machine operations into
the most efficient combination to maximize
value-added content while minimizing waste.






Simplify Flows:

Integrate Process Operations

Materials Flow One Way
Minimize Material Handling

Concentrate on Value-Added Motion

Establish Material Replenishment Procedure
Make Use of People 100 Percent
•
Promote Visibility and Flexibility
•
U-Shape Offers Most Flexibility

Cellular Layout
Prep


Testing
Lab Equip

Testing
Equip
Process

Machine

Work cell specimen processing (WCSP)—the physical or logical
layout of all testing and processing equipment, technicians,
machines, and materials through which a specimen flows.
Work cells minimize movement, reduce batch sizes, decrease
set-up time for testing, improve lab safety, and standardize
work processes with visual cues.


Standard Work Benefits

Quality:
Standard processes produce
predictable results and predictable cycle times
Delivery:
Ensures reliable lead times based on
predictable cycle times
Cost:

Standardized processes are the
foundation of Continuous
Improvement

351

Work Standardization


An agreed upon set of work procedures
and sequences that establish the best
method to perform an operation
•

People

•

Materials/Supplies

•

Methods

•

Machines/Equipment

Vocabulary


Error Proofing or Poka Yoke - A lean tool to design a process
so that so that mistakes are impossible or at least easily
detected and corrected.
Work Standardization – The most efficient work combination
that an organization can put together
Cellular Layout – Linking of manual and machine operations
into the most efficient combination to maximize valueadded content while minimizing waste.
Pull System – A Production system in which goods are built
only when requested by a downstream process.
Push System – A production system in which goods are
produced and handed off to a downstream process,
where they are stored until needed. Creates inventory.
Setup Reduction – Reducing the time between the last good
piece off the current run and the first good piece off the
next run.
353

Lean Thinkers


• It’s not about tools – don’t throw tools at a
problem
• Turn the “mental corner” together
• Filter the problem and problem solving
through Cycle of 5 Lean Principles and
Cycle of Six Sigma Discipline There’s a tool for that!
• Your experience + Lean Six Sigma tools =
solutions
If all the same thinking still exists, little by little
you will return to your prior state!
354


What are your

355


Lesson 25

FACILITATING IMPROVEMENTS

356

Moving to Improve


• The team has done enough analysis
to pinpoint the problem
• They have different avenues they
could pursue for improvement
efforts
• The team is ready
357

Improve Roadmap


358

Generating Solution Ideas


• Brainstorm!
– Generate ideas
– Clarify to be sure all team members
interpret ideas the same way
– Consolidate like ideas into categories

359

What Ideas to Generate?


Overall flow
Who should do what
Where to put the work
Ways to accomplish the task
New ways to deliver customer
needs
• How to avoid defects/problems
• Think Lean Toolbox!
•
•
•
•
•

360

Facilitation Tips for
“Generate”


• Be clear about your objective
• Notify participants in advance
• Bring in other team members as
appropriate
• Try a change of venue
• Consider time of day

361

Beware


• Beware of solutions that don’t
address root cause:
– Additional training
– Increased inspection
– Automation without simplification

• Beware of assumptions
– Team’s experience in the past
– Can’t do it, won’t work
362

Narrow Ideas and Develop
Proposed Solutions


• IDEAS: Raw unrefined potential
improvements
• SOLUTIONS: Concrete,
implementable business proposals
to achieve DMAIC goals

363

Narrow Ideas and Develop
Proposed Solutions


• What tools would you use to
categorize and organize ideas?
• Other ways to group:
– What – relationships between ideas
and group by category
– Why – Better understand types of
possible solutions
– How – Categorize ideas after they are
developed
364

Selecting the Best Solution


• The best solution will address several
criteria and concerns
– Meet/exceed the goal
– Cost, benefit, results, risk

• Buy-in is critical
– Budget, resources and commitment
(champion believes in the solution)

365

Tools to Select


• Weighted criteria matrix
– A discussion & analysis tool
– Focuses team to think through criteria
for success
– Adds greater objectivity and broader
solutions

• Cost/Benefit analysis
– Review estimated cost of the solution
– Determine projected savings and
added revenue

366

Weighted Criteria Matrix


• Identify selection criteria
– What factors/features are key to success
– Include a mix of criteria

• Weight the criteria
– i.e. Use 1-10 scale (10 most important)

• Evaluate each solution
– Include comments about alternatives relative
to criteria

• Multiply score by weight; total weighted
scores
367

Other Possible Criteria
•
•
•
•
•
•
•
•


Cost
Impact to customer
Impact to goal, results
Confidence in Success
Consequences to other processes
Complexity
Impact on people
Expertise required (less is better)
369

Plan and Test the Solution


• A pilot allows us to:
– Test run the solution in a small part of the
organization
– See where possible failure points exist
– Validate and refine cost and benefit
estimates
– Evaluate the process measures for the
improvement
– Increase organizational buy-in
– Improve the proposed solution
– Modify the implementation plan

Overall benefit is a better solution with fewer surprises
370

Source: ASQ LSS Training Material

Pilot Planning
• What – Needs to be piloted
• Where – Will the pilots be run
• Who – Will be involved
• When – (How long) will the pilots run
• How – Will the pilots be conducted

371


Tips During the Pilot


• Make careful observation of all activities,
effects, and interactions during the pilot
and continue pilot long enough to
establish reliable baseline.
• Manage expectations and perceptions.
– Customers
– Management
– Staff

• Refine the improvement if the pilot
demonstrates any weaknesses.
372

– Often the pilot will show a few opportunities
for improvement.

Lessons Learned


• At the completion of the pilot,
capture what worked and what
needed improvement.
• Include lessons learned in the full
roll out of the new process:

373

– Compile lessons learned
– Categorize by type; by defect type,
key analysis used, key words,
problem / opportunity statement,
root causes, etc.
– Communicate lessons learned to
others

Visual Controls


• Visual Controls are communication
devices used in the work environment
that tell us at a glance how work
should be done
– Communicate information quickly and
clearly
– Locate things and places
– Highlight defects, over-production and/or
under-production
– Provide instruction
– Spotlight abnormal conditions
– Communicate status to all
374

Effective Visuals
Create a work environment that
is…
• Self – explaining
• Self – ordering
• Self – regulating
• Self - improving
375


Evaluate Refine and Expand
Solution


• Post pilot activities:
– Assess and verify results
– Refine the solution, adjust as needed
– Review readiness for “full scale” roll out
– Revise/expand implementation plan
– Refine measure and monitoring with
an eye to “control”
– Prepare communication Plan
376


What are your
key take-aways? 2*5

377


Simulation

ROUND 2

378

Round 2


Flow Improvements/Variation Reduction
This round is intended to give the team
experience with specific flow changes &
reducing variation to improve quality and
yield. This round includes the following
phases :






Apply Lean Six Sigma principles and discipline
Apply Lean Tool Kit
Future State Map/SOP
Shoot
Calculations


Exercise Requirements – Round 2
• Team members do not have to perform
the same roles as in Round 1
• No permanent markings or modifications
can be made to the Statapult or balls


Customer Requirements – Round 2
• All shots must be fired at an angle of 164
degrees
• All shots must land in the target area
• Pass/Fail data must be collected for each
shot
• The balls must be sorted based on either
Pass or Fail
• 20 passed balls must be delivered to
customer with no markings (colored dots)
• All data must be collected “real time”


Requirements – Round 2
Business Requirements
• Retain delivery Customer Delivery
Authorization Form (1-T5-L8)

Statapult Requirements
• The Statapult must be placed on the floor

Exercise Future State


Based on the new requirements and your
team’s value analysis of the Current State Map,
design the new process for the next Statapult
round.






Problem solve Variation Issues
New roles/responsibilities
A measurement system
What tools in the Lean toolkit will you use to…
 Error proof
 Pull
 5-S

30 minutes

Round 2 Shoot


Are you ready to start?
• SOP was approved
• Your Future State Map was
approved
• Statapult layout is ready
The simulation will
start simultaneously for
all teams!
Discuss measures.

30 minutes


What are your
key take-aways? 2*5 (break)
385


Lesson 26

CONTROL PHASE

386


Process for Process Improvement - DMAI C
Objectives:
Establish control plan.
Solution implementation.
Verify improvements.
Verify long term
capability.
 Transition project to
process owner.





Activities
 Prepare a project
transition plan and
management review.
 Identify additional
improvement
opportunities.
 Update Standard
Operating Procedures.
 Integrate lessons learned
 Integrate and Manage
solutions in daily work
processes.
 Celebrate your success.


Are you ready to Control?- DMAIC
Knowledge/Skills/Abilities:
 Lean Six Sigma
 Measuring techniques
 Reading and understanding and/or
calculating basic statistics,
average/standard deviations
 Implementation planning
 Delegation and tracking –
accountability
 Communications

DMAIC


Tools
 Standard work documents






(SOPs)
Process Control Plan
Control Charts
Communication Plan
Training Plan

UCL

LCL


Lesson 27

SOP, COMMUNICATION,
TRAINING, & CONTROL PLAN
390

Standard Operating
Procedure


See Addendum #23

391

Communication Plan


See Addendum #19

392

Training Plan


See Addendum #25

393

Control Plans


A Control Plan’s primary intent is to create a
structured approach for control of process and
product characteristics important to the customer.
 Control plans assure well thought-out reactions
are in place if an out of control condition
occurs. They provide a method for
documentation and communication of control
methods.
 Control Plans must be living documents.

Control Plans Answer the
Following Questions


1. What is the process that is being controlled?
2. What are the process outputs that are being
monitored/controlled?
3. What are the inputs that are being
monitored/controlled in order to keep the
output at its target level?
4. How are the inputs and outputs being
measured, monitored, and controlled?
5. How does someone react when the inputs or
outputs are not in control?
395

Control Plans Summary


• Control plans can be likened to
sustainment in 5S
• SPC is not successful without religious
use of control plans
• Control Plans are living documents.
If processes change and a new
variation cause develops, add it to
the Control Plan
396


Control Plan Template
Who

Description

When

How

Why

Target
Level

Corrective Action
Perform Root Cause Analysis:
1.Re-Evaluate Process and Rework.
2.Retrain Personnel.
3.No Change Necessary.

Addendum #20, 21

397

Control Charts


Control charts:
 Are statistical tools intended to assess the
nature of variation in a process.
 They facilitate forecasting and management
of a process or operation.
 A control chart consists of a chart with a
center line drawn at the process mean, an
upper control limit line (UCL) and a lower
control limit line (LCL).
 Processes between the UCL and LCL are
considered under control.
 Review slides 406-409
UCL
Mean
LCL

Exercise – control Plan


In Teams
Develop a Control Plan for
the Simulation

15 minutes

399


What are your
key take-aways? 2*5

400


Lesson 28

TEAM DYNAMICS AND
FACILITATION
402

Culture Trumps Tools


Process, Results and Focus
Improvement Tools
Operations

Must address BOTH
Culture and Tools
to avoid unintended
consequences &
less than desirable
long-term success with
Process Management

Metrics
Processes

Invisible:

Hard to Measure & Change
Blind Spots
History
Mindsets

Resistance

Norms
Assumptions

Habits

Perceptions
403


Four Stages of
Team Development
Bruce Tuckman

404

Stages

Forming

Team
Leader's
Style

More directive approach,
outlining how the process
will develop and laying
down a clear structure.

Reaction
to
Leadership

Team members take a
tentative, wait and see
approach. Leader will be
allowed to lead, but that
doesn't guarantee support.

Team
Process

Storming
Leader needs to be
supportive, actively
listening to team
members, and
managing the conflict,
generating ideas, and
explaining decisions.

Norming

Performing

Leader acts as a
team member, as
leadership is starting
to be shared. Leader
helps to develop
consensus.

Leader takes
overview, but within
the day to day
running, the group is
sharing leadership
between members.

Leader is under
pressure from more
vociferous team
members.

General support for
the leadership within
the team. Mutual
respect underpins this.

Personal relationships
have developed
which underpin the
leadership
relationship.

Process is driven by the
leader. Some people are
reluctant to contribute
openly.

Process likely to break
down until conflict is
resolved.

The core process
should operate
smoothly, although
there is a danger of
focusing on smaller
process issues rather
than core team work.

Process functions well,
and is adjusted as
necessary. Leadership
is shared and tasks
delegated.

Trust within
the team

Individuals are not clear
about their contribution.
"Getting to know you"
phase. Trust may start to be
built.

Trust is focused into
smaller groups as subgroups and alliances
form.

As roles are accepted
and clarified, trust
and relationships start
to develop to a
greater degree.

Team starts to
operate on higher
levels of trust as
loyalty and
relationships develop.

How
Decisions
are made

Nominated leader is
expected to make
decisions. Some more vocal
members may dominate.

Decisions are hard to
make. Members are
unwilling to give
way. Compromise is
a frequent outcome.

Group is able to
come to common
decisions. Win-win is
more likely than
compromise.

Decision making is
easier - some
decisions are
delegated to subgroups or individuals.

Where to Find Team Members


Suppliers
Here

Process Step
1

External/Internal
Customer(s): Those who
receive or use your
product or service,
outside your organization

Process Step
2

Here
Here

Stakeholders:
Regulatory Agencies, Partner
Agencies or Departments, Auditor-Controller, etc.

Here

Two types of team members:
Core Team Members: Are there for the duration of the project.
Extended Team Member: Are requested as needed for the duration of the project.
411

Facilitation
IS…
•Asking

questions
to get a team to
make decisions
•Asking

for ideas
about how to
accomplish a task
•Observing

and
giving feedback


IS NOT…
•Telling

them what to do

•Advocating

your point of view
on how to accomplish a task
•Doing

the task

•Letting

1 or 2 voices dominate
the discussion

•Ensuring

everyone’s input is
considered
412

How to run effective meetings


Addendum #6

Managing vs. Facilitating


Managing
•
•
•
•
•
•
•
•
•

Ensuring available
resources
Making decisions
Delegating
Prioritizing
Directing
Ensuring a good
outcome
Controlling
Measuring results
Rewarding

Facilitating
•
•
•
•

•
•

•

Ensuring optimum use of
resources
Helping the team make
decisions
Clarifying roles and
responsibilities
Influencing,
negotiating, mediating,
teaching
Ensuring good team
structure and process
Creating safe
environments by staying
neutral
414
Encouraging the team

Facilitation Tips
• Stay neutral on content
• Listen actively, watch body
language
• Ask questions
• Paraphrase to clarify
• Synthesize ideas
• Stay on track
• Use the spell-check button
• Give and receive feedback
• Test assumptions
• Collect ideas
• Summarize clearly


Page 7-8 Facilitation at
a Glance!

415

Wording tips


• Use their words – be sure to include the
speaker’s words when scribing or
summarizing
• Ask permission to change words – it
you need to summarize or if in the
discussion the team has come up with
alternative words, ask approval to
change the words before recording it.
416

Flipchart tips


See page 15 Facilitation at a Glance!

Best Practices
See page 18 Facilitation at a Glance!

417

Facilitation Tools
•
•
•
•


Brainstorming
Affinity Diagram
Voting Methods
Priority tool – Pick Chart

418

Brainstorming


An effective brainstorming session…
– Develops highly creative solutions to a
problem
– Invites the experience of the group into
play
– Unlocks innovation
– Brings team members together

419

Brainstorming tips


• Rapid generation is the aim – high energy
• No such thing as a “wild” or “bad” idea – write
down everything and do not let any team member
“knock” an idea
• Chaos can be fun – have fun
• Take pride in your ignorance
• Build on others’ ideas
• Laughter fans the flames of creativity

420

Exercise – Phase 1


You are members of the Board of Directors for an escargot
company. The CFO has indicated that the company is
spending too much money on the disposal of organic
byproducts produced by snails as they grow from incubation
to maturity. Slime is currently being hauled to a landfill and
costs are cutting into the company’s bottom line.
You are asked to brainstorm some potential ideas on what we
con do with the “slug slime” instead of disposing it in the
current manner.
Get in your teams. 4 facilitators. Everyone take 2 minutes as
facilitator. I will ring the bell to switch. (10 min)

421

Affinity Diagram


• Capture all ideas on stickies
• Place them all on a location where they can all be
read
• Have the team begin to move stickies into groups.
• Don’t discuss why. Short clarification of meaning is
OK.
• Resolve conflicts with duplicate stickies.
• Questions large groups.
• It’s over when the momentum stops.
• Title categories last.

422

Exercise – Phase 2


The CEO would like to begin to place
the ideas into categories so that
research and development can have
a starting place to begin at looking at
a resolution to the “slug slime”
problem.
1 facilitator (new). Facilitate the Affinity diagram. (10 minutes)
Teams report out – use another member.

423

Voting Methods


• Single voting: participants vote for their
favorite idea
• Multi-voting: Participants vote for their top
three (or more). Ranking can be
introduced. Can be used to reduce a long
list to a manageable number.
• Sign up voting – Participants vote privately
by turning in “ballots” to be tallied.
See page 74 and 146-147 Facilitation at a Glance!
424

Exercise 3


• The Development Director wants to
see the teams top 10 candidates
before making a recommendation to
the CEO.
Select a facilitator. Facilitator, decide what kind of voting
technique to use and explain it and why you chose it to your
team. Lead the team in the voting technique and isolate
your top 10.

425

Pick Chart


• A tool for organizing process improvement ideas
and categorizing them
• When faced with multiple improvement ideas a
PICK chart may be used to determine the most
useful.
• There are four categories on a 2*2 matrix; horizontal
is scale of payoff (or benefits), vertical is ease of
implementation. By deciding where an idea falls on
the pick chart four proposed project actions are
provided; Possible, Implement, Challenge and Kill
(thus the name PICK).
426


Low Payoff, easy to do - Possible
High Payoff, easy to do - Implement
High Payoff, hard to do - Challenge
Low Payoff, hard to do - Kill
427

Exercise 4


• The company does have the funds to
pursue three ideas but operations has
agreed to pursue two ideas this year.
The CEO has asked you select the top
two ideas that are most likely to
succeed.
Select a facilitator (rotate): Use the Pick Chart and facilitate
the team through it. Report out.

428

Vocabulary Review


Facilitation - Facilitation serves the needs of any group who are
meeting with a common purpose. It does not lead the group,
nor does it try to distract or to entertain it. Rather, seeks to
engage in the tasks to encourage a team towards a
successful outcome.
Brainstorming– A facilitation technique used to draw ideas from
the team in rapid successions.
Affinity Diagram – A tool used to organize ideas into categories.
Voting Methods– A tool used to reduce a large number of ideas
into a more manageable number.
Pick Chart – A tool used to prioritize ideas for action based on
ease of implementation and payoff.


What are your
430


Lesson 29

QUAD REPORT/BRIEFINGS

431

Bringing the Event to
Completion

Ensure
that:
All feasible process improvement ideas have
been implemented
The project sponsor/process owner and personnel
from the affected work area have been
adequately trained on the process changes
Event objectives have been met or exceeded
(Validate)
Processes are updated
Needed controls are instituted in the process

1.

•
•

•
•
•
2.
432


Quantify event benefits (ROI)

Capturing CPI Costs


• Labor

– Cost of team members
– Cost of GB/BB
– Cost of any other workers making
improvements

• Material
– Cost of expendables to support team’s work
– Cost of all material used to make
improvements
• Visual controls, paint, point of use tools, etc.

• Travel Costs
433

Make sure you capture actual costs – not baseline
costs

Return on Investment


ROI = Return on Investment – the ratio
between a predicted “cost” reduction (the
return) that results from improving a process
and the “cost” of implementing the
improvements (the investment).
ROI is about more than just COST.
•

434

See the Charter – Event Tab and Calc Tab

Quad Chart





Started at beginning of the Kaizen



A key document in the formal submittal of
the event’s results



Documents key Kaizen information, metrics,
status & financial results as an executive
summary on one page



435

Prepared for each Kaizen by the Project
Lead with the assistance of the Green Belt

A living document that is periodically
updated during and after the event as
results are validated


Addendum #7

436

Vocabulary Review


Stick Rate Results – The measure of the number of Kaizens that
have completed to the number that have been implemented
and sustained after a 6-month period.
Briefing – The communication by the lead with the champions
on the status of an improvement event during and at the
completion of that event.


Lesson 30

HANDOFF, PREPARING THE
LEAD TO IMPLEMENT AND
REPORT
438

Kaizen/RIE Follow-Up Beyond the
Event


Green Belt


Ensure standard work is implemented



Foster success – market results



Complete and submit documentation on event



Clean handoff to Event Sponsor at completion of
event week

See Addendum #2

439

Prepare the Lead


• Monitor (control charts, control plans,
Gemba)
• Drive completion of any outstanding action
items
• Visit the area frequently for several weeks
after the Improvement Event
• Address stakeholder issues and concerns
• Recognize participants of event and
celebrate success
• Keep up the pressure completing
outstanding action items
440

Event Documentation


• Clearly captures the results of the event
• Should include:
Charter information
Tools utilized
Improvements made
Evidence of data driven decision making
Before / After process flows and metrics
ROI calculations
SOP, Training, Communication, Control
Plans
– Other improvement opportunities
Create a package that sums up
Create a package that sums up
everything
everything
–
–
–
–
–
–
–

441

Lessons Learned


• Every improvement effort offers a lesson.
• It is what we do with these lessons that
matters.
• For successful projects, we want to
document our efforts and conclusions to
repeat the success.
• If not successful, we want to document
what went wrong to prevent repeating the
same mistakes.
• The availability of this type of information
can greatly accelerate future efforts.
442

Team Feedback


• Check for perception of Kaizen
success
• Check for culture change at the team
and individual level
• Learn about what you can do to
improve as a belt
• Information for the Champion/Lead

443


What are your
key take-aways?

444


Lesson 31

PREPARE TO KAIZEN!

445

Preparing for your Kaizen
Event


Getting Ready Form – Addendum # 2
(Items 1-22)
KEYS TO SUCCESS:
1. Clear and specific planning
2. Communication
3. Scheduling people/logistics
4. Working agenda
5. Don’t take shortcuts yet

446

Conduct the Kaizen
•
•
•
•


Prepare as fully as possible
Materials to bring
Equipment
Planning the agenda, activities, and
transitions

447

Conduct the Kaizen


• JIT
• Agenda Review
• Current State (Define, Measure,
Analyze)
• Future State (Analyze/Improve)
• Hand Off (Control)

448

Products of the Kaizen


•
•
•
•

Current State (Baseline data)
Future State (New process)
Brief out/Quad Chart
Documents required by the Champion
• SOP
• Communication, Training Plans
• Control Plans

449


Lesson 32

JIT TRAINING

450


Customize your training by inserting tools
and concepts you will use.
See Teaming Site


Team Kaizen Experience


A new experience – not business as usual



Facilitated by a Green Belt



Introduced to and ask to use L6S Tools



Asks you to think in a very measured and
structured way




i.e. Pre-definitions of waste and value

Your job is to use the tools to help you
“see with new eyes”


Lesson 33

CLOSE OUT

453

Thank you
• Caring
• Work
• Patience
• Courage/Humility


Not Business As Usual


KAIZEN
– “Kai” means “change” or “action to
correct”
– “Zen” means “good” or “benefit”
• In Taoist or Buddhist philosophy, “benefit” is
defined as action that ‘benefits’ the society
but not one particular individual

The process is just as critical as the solution.

When to Use a Kaizen


• Project
• The problem needs a team
• A long standing problem – prior efforts have failed to
solve it

• Leaders
• Champion believes (and understands) it is necessary
• Champion is willing to invest the time
• In other words, the Leader(s) will Lead

• Organization
• Culturally ready
• Structurally ready

Practitioners Lead the
Discipline
• Mastery comes from
practice
• Use the structure to
help yourself and the
team use and master
Lean Thinking



Using Tools Outside of a Kaizen
• A great idea!
• Compliment problem solving, analysis,
decision making by using tools such as Value
Stream Mapping, Metrics, Control Plans, etc.
► Be mindful of pros and cons

Do this as a strategy not a shortcut!

Be Clear About ROLES
Board of Supervisors
Mike Powers, CEO
Catherine Rodriguez, Chief of Ops

Lean
Champion

Practitioner’s
Council

Lean Coordinator

Value Stream
Champion

Service
Excellence
Council

Service
Excellence Office


All Employees

You are
here

Belts

Team
Leaders

Team
Members

Culture Change Takes
Balance


Left Brain = Logic = DMAIC
Define
Measure
Analyze
Improve
Control

Right Brain = Emotions = BTUFA
Believe
Think
Understand
Feel

Adjusted from a Davis Bovis article, “Lean Six Sigma – The Emperor’s New Clothes”

Act

Green Belt Community


• Practitioner’s Council
–
–
–
–
–
–

You are not alone!
Monthly continuous learning
Built in mentors
Find partners for your Kaizens
Brainstorm/ask questions
Stay engaged


PREPARATION FOR
GRADUATION AND BRIEFINGS
462


We…..

Final Brief Out Notes
•
•
•
•
•
•


Discuss Protocol
Send PPT’s
Samples
Duration of report
Schedule
Dress to impress!

See Addendum #2
464


Thank you and
see you at graduation!

Elaine – 658-4342
Paul - 654-3938

Call your mentor!

465


Your feedback please.
466


SEVEN DEADLY WORDS
“ WE HAVE
ALWAYS
DONE IT
THIS
WAY.”

467

Green Belt Training

More Related Content

What's hot (20)

Viewers also liked (7)

Similar to Green Belt Training (20)

Recently uploaded (20)

Green Belt Training

Editor's Notes