Archive for category: All

Create and Execute an Action Plan

An action plan is the method for transforming the process from its current state to the future state. This can be accomplished by using a combination of any of the six sigma methodology associated with best practices, and the appropriate tools from The Lean Toolkit. The action plan for this process resulted in dramatic improvement, ultimately reducing the lead-time to the customer from 8 weeks to 5 days. This was accomplished in a number of ways, beginning with the implementation of a Kanban system at the raw material sub-supplier. Waste was minimized in the manufacturing process in three ways: 1) Elimination of inspection by placing quality responsibility at the source, 2) Removing queue time by changing the flow from a push, to a pull process, and 3) Reducing the number of steps in each process. A summary of the dramatic results is shown in the attached figure. As the cycle repeats, further improvement could be achieved by implementing a Kanban system at the other end of the process; delivery of product to the customer.

 

 

Create a Current State Value Stream Map

Now, let’s turn this diagram into a Current State Value Stream Map. The original working session for developing a value stream map is very manual, and as I mentioned earlier, is best done on a white board or with Post-it Notes®. I prefer the flexibility of Post-it Notes®, and a real world working session using this technique is shown in the attached Figure. As you can clearly see, the current state map covers an entire wall, which is very typical when defining how a process is really operating.

As the name implies, the goal is to find out how the processing is currently operating today, not how the SOP says things “should” be or how it was “designed” to be. The goal is to capture reality onto a piece of paper; the current state. Use a stopwatch for the time studies and determine the actual times where practical. While the VSM will eventually be finalized with software, the initial map should be created with Post-it Notes® because there will be frequent changes as the team goes through this process. Once the process has been defined, the Post-it Notes® map can be digitized with flowcharting software. Value stream maps use a variety of unique symbols that are not used in traditional flowcharts and diagrams, and while Word and Excel can be used for flowcharting, for ease of use, professional flowcharting software like Visio should be used.

I remember the not-too-distant past when a 99% yield rate would earn you bragging rights (myself included). Looking at what that really means by today’s metrics show that a 1% scrap rate converts to 10,000 defective parts per million (DPPM). As a customer, imagine a supplier striving to give you only 1% defective parts! World-class six sigma levels allow only 3.4 DPPM. If you are still hanging in there with me at this point, I would hope that you agree that 10,000 DPPM is totally unacceptable and are prepared to do something about it.

Note: It must be mentioned that the 3.4 DPPM attributed to six sigma levels was developed by Motorola, and based on the assumption that over time a process is likely to have a shift in the mean of up to +- 1.5 sigma. This potential shift is factored into the 3.4 DPPM. Statistical purists would argue that a six sigma level is actually .002 DPPM, but since the Motorola interpretation is universally accepted, I use 3.4 DPPM to represent a six sigma level.

When organizations like Motorola and General Electric began communicating six sigma expectations to their suppliers in the early 1980s, what began as a ripple quickly developed into a shockwave throughout the supply chain. To say that this concept was met with some resistance is a monumental understatement. Companies had absolutely no idea how they were going to affect a change of such magnitude that their process defect rate would drop from 10,000 to 3.4 DPPM. Through a slow and painful process, companies began to understand that the way to achieve these quantum paradigm changes was through lean best practices. The interesting paradox is that none of us would accept 99% in our personal lives, so why do we accept it in our businesses? The attached Figure shows what life would look like if we settled for having things right only 99% of the time in some areas we can all relate to. This kind of changes the perception that 99% is good enough, doesn’t it?

Contrast this with a six sigma level in which your local weatherperson’s forecast would be correct every single day for 795 years in a row! (talk about a pipe dream; but that could be another whole article)

What is Six Sigma?

Sigma (σ) is the eighteenth letter in the Greek alphabet, and is defined and used in two different ways: 1) As a mathematical measure of the amount of variation in a process. This is normally referred to as the standard deviation of a process; the lower the standard deviation, the better, and 2) To describe the quantity of defects a process will produce. This is normally referred to as the sigma level of a process and is a measure of process performance; the higher the sigma level, the better. Although statistics are usually associated with six sigma, that is only part of it; six sigma is the problem solving methodology called DMAIC (Define, Measure, Analyze, Improve, Control). DMAIC is a process that uses a collection of tools to identify, analyze, and eliminate sources of variation in a process. Six sigma can be an intimidating concept to grasp, particularly regarding the statistics and scary math part of the process. The key takeaway is that to achieve a six sigma level, process variation must be cut in half from a three sigma level.

Value stream mapping brings together lean concepts and techniques and helps to avoid the “cherry picking syndrome” in which processes that have very little impact on the product or service are chosen because they will be easy to improve. Value stream mapping forms the basis of an action plan (going from current state to future state), and illustrates the linkage between information and material flows. Like most things related to lean, or any initiative, there are some basic steps to follow when creating a value stream map. The process of value stream mapping is self-perpetuating; meaning that eventually the future state becomes the new current state and the cycle continues.

One of the most critical steps in the value stream creation process is recognizing non-value (waste) in the process. If we use the definition of value presented earlier in this book, waste will be anything that the customer is not willing to pay for. Value-adding activities are tasks that that transform (add value to) the product in some way. This transformation can take the form of either hard changes to the product, or soft changes such as brand vs. private label products. Each step, of each task, of each process needs to be objectively evaluated against this criterion to successfully identify wastes that can be eliminated. The following five principles can be used to guide an organization in this evaluation:

1)         Define value from the customer perspective

2)         Identify the value stream for each product family

3)         Make the product flow

4)         Create pull to build only what is needed, when it is needed, and

5)         Strive toward excellence.

Throughout the process analysis activity, it is critical to remain focused on the right things; activities that impact improvement of the organization’s products or services. Next time we will deep dive into the four critical steps of value stream mapping.

Every year I get together with a group of my good friends, Bobby, Dudley, Doug and Woody, all fellow Harley-Davidson enthusiasts, and take an epic ride to “parts unknown”. As we were sitting around the campfire one night during this year’s trip, I mentioned that I was writing the Quality 101 book and was struggling with fitting all of the available quality tools into one chapter. Doug, who has his own handyman show as his day job, said “Steve, it is all about having the right tools in your toolbox for the job at hand.”

As is normally the case, my friend Doug had just condensed a complex problem down to a simple solution; develop a Quality Toolbox with only the most powerful tools that should be a day-to-day part of any quality professional’s arsenal. I have classified this toolbox into four categories: Process Analysis Tools, Data Collection & Analysis Tools, Problem-Solving Tools and Quality Planning Tools. While this toolbox is certainly not all inclusive, the set of tools contained in the chapter will provide a blueprint that any organization can use to develop, implement, and maintain a world-class quality system that supports a continuous improvement culture.

Buy now at http://www.quality101book.com/