Lean Six Sigma Projects & Strategy Linkage

Integrating Lean Six Sigma Projects to Your Strategy,[object Object],How to integrate LSS – People, Processes, Systems, Methods, Roadmaps, Tools & Techniques?,[object Object],Anand Subramaniam,[object Object]

2,[object Object],“Good teaching is one-fourth preparation and three-fourths theater.” ,[object Object],- Gail Godwin,[object Object]

3,[object Object],Highlights,[object Object],Vision – Centre of Excellence (CoE),[object Object],[object Object]

Lean & Six Sigma – From Project Selection to Benefit Realisation

DMAIC - High Level Overview,[object Object]

Process Maturity - where are you?,[object Object],5,[object Object],No process measurement or control,[object Object],Some breakthrough improvements,[object Object],Many incremental improvements,[object Object],Continuous Improvement Culture,[object Object],[object Object]

Kaizen Events, Lean Six Sigma Projects

Identify & remove waste within their own work

Culture focused on striving towards – perfection (continuous improvement)Lean & Six Sigma Projects,[object Object],[object Object]

Address root causes of process problems

Refine LSS metrics & support structures

Generate value!Pilot Program,[object Object],[object Object]

Select diverse portfolio of pilot projects

Measure & adapt LSS structure appropriately

Integrate LSS into organisational fabricMaturity,[object Object],Time,[object Object]

Customer Experience – do you measure it?,[object Object],6,[object Object],Enhance Customer Experience,[object Object],Innovation,[object Object],(Business Model, Products / Services and,[object Object],Processes) ,[object Object],External Stakeholder (Political, Society) ,[object Object],Improve-ments,[object Object],Employee ,[object Object],Engagement (Safety, Morale),[object Object],Revenue & Growth Improve-ments,[object Object],Cost &,[object Object],Productivity,[object Object],Process Improve-ments,[object Object],Build cross functional teams - capabilities & competencies,[object Object],Lean Six Sigma Projects,[object Object],Business Process Standardisation (BPM),[object Object]

Process Excellence ,[object Object],7,[object Object],Process ,[object Object],Improvement ,[object Object],Improve existing processes,[object Object],to ever increasing values,[object Object],Process ,[object Object],Innovation,[object Object],Identify & create new products & ,[object Object],Processes,[object Object],CoE ,[object Object],(Centre of ,[object Object],Excellence),[object Object],Process ,[object Object],Management,[object Object],Maintain standard ,[object Object],processes, metrics &,[object Object], leverage of,[object Object],improvements,[object Object]

LSS & Process Maturity Level– where are you? ,[object Object],8,[object Object],Lvl 5 - Optimised,[object Object],Low,[object Object],High,[object Object],Continuously Improve Process,[object Object],Lvl 4 – Quantitatively Managed,[object Object],Measured,[object Object],Predictable Process,[object Object],Lvl 3 - Defined,[object Object],Standard,[object Object],Productivity / Quality,[object Object],Risk,[object Object],Std Consistent Process,[object Object],Lvl 2 - Managed,[object Object],Planned & Tracked,[object Object],Maturity levels should not be skipped,[object Object],Disciplined Process,[object Object],Lvl 1 - Initial,[object Object], Performed,[object Object],Lvl 0 - Not performed ,[object Object],High,[object Object],Low,[object Object]

Linking Your Strategy to Lean Six Sigma Projects Selection,[object Object]

Your Business Strategy & VOB / VOC,[object Object],10,[object Object],Voice of Business,[object Object],Voice of Customer,[object Object],Strategic,[object Object],Plan,[object Object],Plan,[object Object],CEO scorecard,[object Object],Business,[object Object],Objectives,[object Object],[object Object]

EmployeeBusiness unit scorecard,[object Object],Business,[object Object],Measures,[object Object],Project results,[object Object],[object Object]

Customer impactValue stream,[object Object],Value Leavers,[object Object],Project selection,[object Object],Execute,[object Object],Methods & Tools,[object Object],Process Scorecard,[object Object],Strategic,[object Object],[object Object]

Cross-functionalTactical,[object Object],[object Object]

Rework / scrap reduction,[object Object]

Have you analysed your gaps?,[object Object],12,[object Object],Analyse Gaps,[object Object],[object Object]

Estimate breakthrough potential

Executive ownership of findings

Identify barriers to implementation

Identify risks / opportunities Business,[object Object],Strategy,[object Object],Key Performance,[object Object], Indicators,[object Object],Market place,[object Object],Leadership Processes,[object Object],Core Business,[object Object],Processes,[object Object],Process Output,[object Object],Measures,[object Object],Critical To ,[object Object],Satisfaction,[object Object],Gap,[object Object],Analysis,[object Object],Support Processes,[object Object]

How have you closed the gaps?,[object Object],13,[object Object],Focus on closing gaps,[object Object],Business Strategy,[object Object],Key Performance,[object Object], Indicators,[object Object],Market place,[object Object],Leadership Processes,[object Object],Core Business,[object Object],Processes,[object Object],Process Output,[object Object],Measures,[object Object],Critical To ,[object Object],Satisfaction,[object Object],Deploy key improvement areas into potential projects,[object Object],Key Improvement Areas,[object Object],Gap,[object Object],Analysis,[object Object],Support Processes,[object Object],D,[object Object],B,[object Object],E,[object Object],C,[object Object],A,[object Object],Prioritise potential projects ,[object Object],Potential ,[object Object],Projects,[object Object],________,[object Object],________,[object Object],Potential ,[object Object],Projects,[object Object],________,[object Object],________,[object Object],Potential ,[object Object],Projects,[object Object],________,[object Object],________,[object Object],Potential ,[object Object],Projects,[object Object],________,[object Object],________,[object Object],Potential ,[object Object],Projects,[object Object],________,[object Object],________,[object Object],Select projects that will have the greatest impact on driving the businesses key performance indicators, strategy, & critical to customer (CTQ) requirements.,[object Object],Active Projects,[object Object]

Here is an example..showing linkage,[object Object],14,[object Object],Strategic Intent e.g. ,[object Object],10% Return on Sales,[object Object],Financials,[object Object],STRATEGY,[object Object],Improve Revenue,[object Object],Improve EBIT,[object Object],TACTICS,[object Object],Reduce Operating,[object Object], Expenses,[object Object],Reduce Costs of,[object Object],Poor Quality,[object Object],Get more ,[object Object],NEW customers,[object Object],Increase prices,[object Object],“share of wallet” ,[object Object],Existing / New customers,[object Object],Processes,[object Object],EXECUTION,[object Object],Project C,[object Object],Project F,[object Object],Project B,[object Object],Project E,[object Object],Project A,[object Object],Project D,[object Object]

Lean Six Sigma (LSS),[object Object]

Lean Six Sigma - Convergence,[object Object],16,[object Object],Commonality of both methodologies:,[object Object],[object Object]

Improve processes by eliminating waste & delivering value

Continuous effort to ensure improvements are sustained,[object Object]

What about your KPIs?,[object Object],18,[object Object],Minimum Cycle Time,[object Object],Right,[object Object],Delivery,[object Object],Robust Performance!,[object Object],Maximum,[object Object], Flexibility,[object Object],Lean Transformation,[object Object],Minimum,[object Object],Waste,[object Object],Lean Tools,[object Object],Reduced,[object Object],Inventories,[object Object],Improved Capacity ,[object Object],Management,[object Object],Six Sigma Quality,[object Object],Six Sigma Tools,[object Object],Highest,[object Object], Quality,[object Object],Right,[object Object],Quality,[object Object],Best Process,[object Object], Reliability,[object Object],Predictable Results!,[object Object],Rapid ,[object Object],Response to,[object Object],Change,[object Object]

An example…to better your KPIs,[object Object],19,[object Object],Improvement Toolset ,[object Object],Lean Environment,[object Object],Benefits,[object Object],Quality,[object Object], - Manufacture to target specifications,[object Object], - Ensure process capability/reliability,[object Object], - Standard operating procedures,[object Object],Minimum,[object Object],Cycle Time,[object Object],Six Sigma,[object Object],Maximum,[object Object],Flexibility,[object Object],Problems Identified and resolved,[object Object], - Rapid response to problems,[object Object], - Problems are solved immediately,[object Object], - Methods to eliminate root cause,[object Object],Minimum ,[object Object],Waste,[object Object],Predictable Output,[object Object], - Minimal variation in the process,[object Object], - Predicable equipment/worker output,[object Object], - Material and information is available,[object Object],Reduced,[object Object],Inventories,[object Object],Value Add,[object Object],Lean,[object Object],Skills & Sustaining ,[object Object],Improved,[object Object],Capacity,[object Object],Mgmt,[object Object],Elimination of Process Delay,[object Object], - Minimal Material movement,[object Object], - Small Lot production(EOQ =1),[object Object], - Takt Time controlled,[object Object], - Continuous Flow,[object Object],Highest,[object Object],Quality,[object Object],Quality Management ,[object Object],Systems ,[object Object],Operational costs,[object Object], - Multi-skilled employees,[object Object], - Cellular manufacturing,[object Object], - Repeatable process performance,[object Object], - Optimised Facility Design,[object Object],Best ,[object Object],Process,[object Object],Reliability,[object Object],Rapid Response,[object Object], to Change,[object Object],Sustaining Actions,[object Object], - Training,[object Object], - Leadership/Change Management,[object Object], - 1% Revenue savings,[object Object]

Lean & Six Sigma - Comparison ,[object Object],20,[object Object],Compliment each other,[object Object],Lean,[object Object],[object Object]

Lean Six Sigma Projects & Strategy Linkage

Lean Six Sigma Projects & Strategy Linkage

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Lean Six Sigma Projects & Strategy Linkage