Lean Six Sigma

…to provide the background and infrastructure for successful Lean Six Sigma deployment

to understand DMAIC problem solving, key tools, roles and responsibility, and infrastructure of Lean

Six Sigma

About SSCX

ExperienceExpertise

Key Learning Points

Our Experience

► Operational Excellence consulting and training firm with established methodology and framework.

► Help companies save billions of Rupiah per year during deployment in our clients.

► Built lasting change for OpEx Strategy Implementation.

Coach of Asia's Six Sigma Conference BEST DEFECT ELIMINATION

SERVICE & TRANSACTIONAL winner!

“Integrating Freeport Mining Concentrating Division’s human capital and management commitment with SSCX’s quality service is what drives us forward in accelerating cost transformation…”

Iyas KusnadiConcentrating Division - Freeport

Indonesia

Training and Coaching► American Society for Quality (ASQ) partner in

Indonesia (exam-proctor), now you can take ASQ Certified Black Belt or Green Belt in Jakarta. www.ASQ.org.

– Next: Oct 1, 2011 (Reg before Aug 12)

► Society of Manufacturing Engineer (SME) exclusive partner in Indonesia (training and certification), now you can take international Lean Certification in Jakarta. www.SME.org. “Bank Mandiri has strong passion in delivering top notch

services to satisfy our customers and to be the best bank with strong positive culture, SSCX shares the same

passion and quality!”

SasmitaDirector of Technology and Operations - Bank Mandiri Tbk

Our Clients - shortlisted

Perusahaan Andalan,..Produk dan Pelayanan Terbaik…► Sehat secara finansial dengan indikator finansial

yang mantap dan stabil► Pelanggan yang puas dan loyal sehingga

pelanggan yang terus bertambah► Proses Bisnis Internal yang efektif dan efisien

serta memudahkan pelanggan► Pertumbuhan dan Pembelajaran yang terjadi

terus menerus bagi karyawannya sehingga dapat mencapai pertumbuhan berkesinambungan

Yang Kita Butuhkan...Ketiganya sama penting:

► Top-down Alignment dengan strategi bisnis

► Infrastruktur untuk mendukung upaya perubahan

► Common Discipline untuk keselarasan dan pengaturan sumberdaya untuk mencapai visi

CalibrateVision

Method

Commitment

Discipline

Infrastructure

StrategicAlignmen

t

Yang Kita Butuhkan…

LEAN SIX SIGMA !

Definisi Lean Six Sigma► Operational Excellence strategy that is providing

framework to prioritize resources for projects that will improve key metrics, and leverages leaders who will manage the efforts for rapid, sustainable, and improved business results.

► Strategi Operational Excellence yang menyediakan kerangka kerja untuk memprioritaskan sumberdaya untuk proyek yang akan meningkatkan metrik-metrik utama dan leverage (“ungkit/dorong”) pemimpin yang akan mengelola upaya untuk hasil bisnis yang lebih cepat dan berkesinambungan.

Traditional Performance Paradigm► Selama ini, banyak perusahaan

meyakini bahwa ada salah satu opsi yang bisa ditempuh, apakah speed, ataukah quality, ataukah cost. Atau minimal, selalu ada aspek yang dikorbankan.

► Contohnya, untuk menurunkan delivery time, perusahaan menggunakan perusahaan ekspedisi yang membuat cost jadi naik, dan kualitas dikorbankan karena fokus pada volume.

Shorter Deliver

yTimes

Improved

ProductQuality

Lower ProductCosts

New Performance Paradigm► Paradigma baru merubah ini, justru

sebuah peningkatkan di salah satu aspek akan memperbaiki kinerja dari aspek lain.

► Contohnya, untuk mencapai penurunan waktu delivery dilakukan dengan eliminasi rework, scrap, dan inefisiensi lain di proses produksi, yang berarti naiknya kualitas produk dan turunnya biaya produksi!

Shorter Deliver

yTimes

Improved

ProductQuality

Lower ProductCosts

Lean Six Sigma Strategy► Untuk mengimplementasikan

paradigma baru ini, perusahaan beralih ke dua strategi process improvement Lean dan Six Sigma.

► Lean fokus pada penurunan lead time dan cost.

► Six Sigma fokus pada peningkatkan kualitas dan cost.

► Lean Six Sigma mengkombinasikan kelebihan kedua strategi ini.

Lean Focus

Six

Sigm

a Fo

cus

Lean Six Sigma

Shorter Deliver

yTimes

Improved

ProductQuality

Lower ProductCosts

Mengapa Butuh Kualitas dan Lead Time Reduction?► Customer Loyalty dan Customer Retention► Kebutuhan akan lead time yang lebih pendek► Meningkatnya kebutuhan akan fleksibilitas dan ukuran lot

atau batch yg lebih kecil► Meningkatnya kebutuhan akan kapasitas proses atau

produksi► Ekspektasi akan lower invested capital + higher financial

returns► Tekanan penurunan harga; perlu upaya penurunan biaya

Keuntungan Integrasi Lean dan Six Sigma► Kombinasi 2 metode yang sudah terbukti; Lean tools dan

Six Sigma dalam sebuah implementation framework yang dikenal dengan DMAIC.

► Metodologi dan bahasa yang umum yang dikenal oleh organisasi global (multi bahasa)

► Terminologi yang umum akan mempermudah replikasi yang cepat dari sebuah best practice ke seluruh lokasi dari sebuah organisasi

► Membuat single framework untuk memecahkan masalah di proses di berbagai area dalam organisasi (misalnya Sales, Marketing, Customer Services, IT, Manufacturing dapat berinteraksi dalam memecahkan sebuah persoalan)

Contoh-Contoh Proyek Lean Six Sigma di Berbagai Industri► Percepatan cycle time proses► Percepatan lead time proses lead time► Peningkatan kualitas pelayanan► Meningkatkan kepuasan pelanggan► Mempercepat waktu respon di customer service► Meningkatkan output produksi► Meningkatkan % delivery on time► Mengoptimalkan level inventory► Meningkatkan produktivitas karyawan

Contoh-Contoh Proyek Lean Six Sigma di Berbagai Industri► Meningkatkan availabilitas mesin atau sistem► Mengurangi setup time produk atau servis► Mengurangi unplanned down time mesin atau

sistem► Meningkatkan reliabilitas mesin atau sistem► Meningkatkan reliabilitas produk atau servis► Mengoptimalkan parameter mesin atau sistem► Menurunkan % cacat produk maupun servis► Meningkatkan efisiensi energi

Contoh-Contoh Proyek Lean Six Sigma di Berbagai Industri► Menurunkan lead time proses procurement ► Meningkatkan kepuasan pelanggan► Menurunkan tingkat kecelakaan kerja► Menurunkan tingkat keluhan pelanggan► Menurunkan jumlah limbah► Dan masih banyak lagi

Green Belts

• Lead and Communicate change

• Ensure Strategy – Link project

• Reports results• Monitor Project

progress• Remove Roadblocks

• Project sponsor & owner

• Implements solutions• Owns financial results• Part time

Experienced Experts• Train and coach• Support

large/complex projects

• Full time - Corporate/Regional

Manager, Engineer,…• Lead and Facilitate problem

solving Process• Train and coach project teams• Part time – 25-30% on projects

• Lead Corp and BG deployment design and roll-out

• Remove roadblocks

SteeringCommittee

MasterBlack Belts

Champion

Project Level

Line Level

Line Management

Shopfloor, Clerical• Provide project-

specific support• Use single tools• Part time

Project TeamMembers

Continuous Improvement Roles

Full Deployment vs Sniper Cell Approach

0 1 2 3 4 5 Years

$ B

enef

it

$0

1:1

2:1

3:1

5+:1

4:1

‘Sniper – Cell’ approachProject Discipline Only

Strategic IntegrationInfrastructure

Disciplined Execution

Successful

deployment

Less Successfu

l deployme

nt

Critical Zone of Business

Process Improvement

Lean Six Sigma: Life of a Project

LeadershipCommitme

nt

Determine Highest Value Initiatives

DetailProjects – ID Sponsor

I.D. Potential Projects

Operating Agenda

Benefit-Effort Matrix

Prioritize Projects

CommitResources

PerformInitial Screen

Project (Team)Launch

Monitor Project Results

Celebrate Wins /Share Lessons Learned

Report Results /Control for Long Term

CID Overlap Area Sponsor

Project Identification

Project Selection/Release Project Execution

$$

Projects1.2.3.4.5.

PeopleAnn

Bob

Joe

Plans

VoB, VoC, VoP, VoE

GateReview

StopStop

GateReview

StopStop

GateReview

StopStop

GateReview

StopStop

GateReview

StopStop

Define

Measure

Analyze

Improve

Control

Validate

GateReview

StopStop

Effort(Capex & Time)

Benefit(Value

Creation &EHS Perfor-

manceImprove-

ment)

HHLL M

1313

66

1515

11 88

33

1212

99

4477

1717

1414

22115

1010

1616

L H

L

M

H

Proposed Timing and MilestonesInitiativesCapex($M)

ValueCreation

($M)

40 90

450 200

100 75

40 50

na na

1. Plant X Optimization

2. Plant Y Expansion

3. Partial closure of PlantZ and Harvest

4. Profitable extension ofparticipation in Market X

5. EHS FIRSTImplementation

1 20032 3 4 1 20042 3 4 1 20052 3 4 1 20062 3 4 1 20072 3 4

Target Completion

Key BU Decision Point

Request for Capital from ExCom

Expenditure of Capital

Action

Long-List of Potential CI Projects

Process analysis linksthe business byprocess (versusfunctions) and givesperspective on projectideas

OperatingAgenda

(from MaxValStrategy

Development)

Voice ofCustomer

(VoC)

Voice ofProcess(VoP)

Voice ofBusiness

(VoB)

Three lenses/ Tools

Identifying gaps inmeeting customersneeds (criticalcustomer requirements)provides ideas forprojects

Performing financialanalysis identifiesgaps in performanceto generate projectideas

Others•Bottom - up•EHS•Regulatory

Sources

StrategicAgenda

Project Selection

Prioritize List of Defined Projects

Score each project in terms of Benefit and Effort

Fill in Benefit/Effort Matrix Review plotted results Select highest priority

potential projects for further analysis

Assign potential projects to project sponsors for better definition of the project (creation of the “project charter”)

Complete Draft Project Charters/Definitions

Identify Potential Projects

Screen Initial List of Potential Projects

Scope and Define Projects

Evaluate projects using Evaluation Criteria

Update Benefit/Effort Matrix

Review plotted results Rich

discussion/Prioritize projects

Schedule project launches based on resource availability

Pass the Operating Agenda initiatives through filters to identify potential CI projects:

Voice of the Customer Voice of the Business Voice of the Process Voice of the Employee

Tool to identify gaps/potential projects

Project Selection

INPUT: Operating Agenda Initiatives

Generate/ Discover Potential Projects

Define and Prioritize Projects

Projects-in-Process Management

Divergent, Messy, Iterative Activity

Convergent, Orderly, Iterative Activity

Project Queue

Sequenced & Gated Projects

INPUT: Bottom-up Ideas

Long-List of Potential CI Projects

Define

Measure

Analyze

Improve

Control

Main Activity:

• Clarify and Define Y• Setting the target Y• Determining VoC/VoB• Define project scope• Establish Team• Project Plan• Calculate the Value

Creation• Update Project

Charter

Main Activity:

• Planning for data collection

• Validate measurement system

• Value Stream Mapping

• Identify Quick Wins• Measure the

condition (baseline), Y, and x's

• Measuring stability and process capability

Main Activity:

• Identify and prioritize x (root problem)

• Identify Non-Value Added Activities

• Finding solutions and prioritize potential solutions

• To test the hypothesis "y vs. x”

Main Activity:

• Piloting the solution on a small scale

• Implementation of the overall solution

• Verification of improvement (the impact of the solution)

Main Activity:

• Controlling KPOV and KPIV

• Project Document• Recalculate the Value

Creation• Plan for duplication of

solutions• Project Closing and

handover to the Process Owners

Key Tools:

• Pareto• Project Charter• Action Plan• Process Map / Flow• SIPOC• FMEA• Team Effectivement

Key Tools:

• Data Collection Plan• MSA – Gage R&R• Value Stream Mapping• Control Chart• Capability Analysis• Quick Win• Value of Speed (WIP

Control)

Key Tools:

• Brainstorming• Basic Improvement

Tool• FMEA• C/E Matrix• Hypothesis Testing• Solution Matrix

Key Tools:

• Design of Experiment

• Pilot Plan• Hypothesis Testing• Four Step Rapid

Setup Method• Productive

Maintenance• Reliability

Key Tools:

• Control Plan• FMEA• Mistake Proofing• Control Chart• Project Handover

Quick Win and Kaizen Blitz

Project Roadmap

Initial StudyExecutive Briefing

Infrastructure DevelopmentProject Selection and

PrioritizationGreen Belt Training

CoachingInfrastructure Development

Project Selection and Prioritization

Black Belt TrainingGreen Belt TrainingBlack Belt Coaching

Green Belt CoachingBlack Belt DEEP DIVE

Green Belt TrainingBlack Belt MentoringGreen Belt Coaching

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

1st Wave

1st Wave

2nd Wave

3nd Wave

Equipping LOW

Equipping LOW

Equipping HIGH

Take Aways► Lean dan Six Sigma adalah dua strategi yang independen

tetapi memberi manfaat dan dampak luar biasa saat disinergikan.

► Lean Six Sigma membutuhkan minimal strategic alignment, disciplined execution, dan change infrastructure agar berjalan baik dan berkesinambungan.

► Metode DMAIC adalah metode problem solving dalam Lean Six Sigma dan jika dijalankan dengan benar akan menciptakan peluang perbaikan yang signifikan.