Lean Operations, Six Sigma, & Lean Six Sigma Madhav Kasukurthi & Bill Ryan Lean Operations Six Sigma & Lean Six Sigma Q&A Total Quality: The Umbrella • An approach to doing business that attempts to maximize the competitiveness
Lean Operations, Six Sigma, & Lean Six Sigma Madhav Kasukurthi & Bill Ryan Lean Operations Six Sigma & Lean Six Sigma Q&A Total Quality: The Umbrella • An approach to doing business that attempts to maximize the competitiveness of an organization through the continual improvement of the quality of its products, services, people, processes, and environments. Lean Operations • Referred to ‘Lean Manufacturing’. • Results appreciated by Practitioners. • Adapted by the service sector. • Based on concept of ‘Toyota Production System’ developed at ‘Toyota Motor Corporation’. What is Lean? (Operations, Manufacturing, or Production) • Lean is about doing more with less: less time, inventory, space, labor, and money. • Lean manufacturing, a shorthand for a commitment to eliminating waste, simplifying procedures and speeding up production. • Driven by…cost, quality, delivery, safety, & morale Motto Doing more with less and doing it better. Types of Waste OverProduction Waste • Manufacturing Setting – Producing 100 products when only 50 are needed. • Service Setting – Pumping 20 gallons of gas when customer requires only 15. Inventory Waste • Carrying more inventory than needed causes extra burden to maintenance. Motion Waste • Incorporating unnecessary movement into production process or into delivering services. • Manufacturing Setting - Programming too many motions into a CNC (Computer Numeric Control) milling machine. • Service Setting - Move around office several times to obtain everything needed to complete paperwork. Transportation Waste • Manufacturing Setting– Excess movement of parts. • Service Setting – Typically means excess movement of people. Defects Waste • Manufacturing Setting – A part that is faulty as it does not meet customer requirements. • Service Setting – Rewrite an insurance policy as it has faulty calculations in the original document. Waiting Waste • Manufacturing Setting – An expensive machine which cuts the material, but the material s not available yet. • Service Setting – Not delivering the product to the customers as there are no resources available. Over processing Waste • Manufacturing Setting - Going beyond customer requirements in ways that create no additional value when producing a product. • Service Setting – Doing more service than the customer wants. Underutilization Waste • Manufacturing Setting – Limited knowledge on machines. • Service Setting – Also limited knowledge on machines. Tools and Techniques of Lean Five S workspace organization Visual workspace systems • Promotes ease of communication. Layout • Achieve optimum plant layout so that motion and transportation wastes are eliminated. Standardized Work • Involve repetitive tasks that are to be done in most efficient way and productive manner. Used for eliminating errors. Pull Systems/ Kanban (“Sign” a Japanese word) • Used to provide a visual method. Lets one step in the process know that the next step is ready for it’s output. Point of Use Storage • Ensures that the tools and parts needed at a given workstation are stored conveniently near the station. Helps to minimize movement and transportation waste. Batch Size Reduction • Achieves efficiency for the entire system rather than for a given process within the system. Ensures that work flows smoothly and continuously from one process to another rather than bunching up at any workstation. Makes process conversions as rapidly as possible. Quick Changeover • Involves changing tools quickly in a manufacturing setting. Eliminates time wasting in making process changes. Poka Yoke • Error proof a process to the extent possible. It is especially important for situations where there is potential for human error. It involves in questioning like “What can go wrong here?” when setting up a process and finding ways to eliminate them. Self Inspection • Involves having personnel check their own work rather than just passing along errors to the next step in the process. To apply this tool, individual employees must be trained, provided with inspection standards. Autonomation • “Automation with a human touch.” Used to build automatic alarms/ process notifications into the system so that when any problem arises a person will be notified. Cellular and Flow • Used to ensure a steady and consistent flow of work through the system. When output of one step in the process sits idle waiting to be used in the next step, time is wasted. A steady, continuous flow of work is achieved through this tool which is efficient. Just In Time(JIT) • Ensures that items are delivered to the step in the process just in time to be used. Total Productive Maintenance(TPM) • Ensures all equipment in a system and all parts of all processes that make the system are in good condition and ready when called on. Value Stream Mapping (VSM) Japanese concept of ”Kaizen”. • Identify the process groups (of tasks). • Develop a map of current state • Develop a map of desired future state. • Develop a plan to achieve the future state map. Teamwork • Ensures all the other concepts of Lean can be implemented effectively. How to eliminate waste? Metrics of Measurement Overproduction: Wasted Motion: 1.Number of specimens delivered per hour. 1.Travel distance associated with completing all process steps one time. 2.Number of batches per shift. 3.Batch size passed between each process step. 2.Spaghetti diagrams of your staff during peak operation times. 3.Walking distance to areas where materials, supplies, and/or specimens are obtained. Transportation: Waiting: 1.Steps associated with tube