OAKLAND

CONSULTING
DRIVER
A European Lean Six Sigma Process
Improvement Methodology

Paul White
Oakland Consulting

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Agenda
Oakland Consulting
Process Improvement Methodologies
Lean Principles
Six Sigma Overview
DRIVER:
> Process Focus
> Deployment Strategy
European Aeronautical Defence Sector (EADS)
EADS DRIVER Case Study
Questions & Answers




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CONSULTING
Some of our Private Sector Clients
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Some of our Public Sector Clients
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Workshop Discussion
What methods can we use to protect the customer?






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100% Inspection Does it work?
Workshop Discussion
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Will 100% inspection protect the customer?
Scenario

Oaklands Marketing Department are very proud of the
publications they produce.
The customers of Oakland expect the highest quality
publications.
Therefore, the manager of the publications department has
decided to employ you as an inspector at the end of the printing
process to ensure that the text produced is accurate.
You have 30 seconds to inspect the following set of text and
count how many times the letter F appears, (upper & lower
case) including the title.

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CONSULTING
Finished files are the results of many
years of sceintific studies combined
with the experience of many years of
effort
F-Test
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CONSULTING
How many did you see?
Have another look!
F-Test
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CONSULTING
Finished files are the results of many
years of sceintific studies combined
with the experience of many years of
effort
F-Test
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CONSULTING
Did anyone change their mind?
F-Test
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Finished files are the results of many
years of sceintific studies combined
with the experience of many years of
effort
F-Test
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CONSULTING
Did you spot anything else?
F-Test
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CONSULTING
Finished files are the results of many
years of sceintific studies combined
with the experience of many years of
effort
F-Test
F-Test
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CONSULTING
100% Inspection Does it work?
Workshop Discussion
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CONSULTING
Process Improvement
Methodology Objective
Waste Elimination / Defect Reduction
Efficiency / Yield Improvement
Improved Customer Satisfaction
Higher Shareholder Value
OAKLAND
CONSULTING
Process Improvement Methodologies

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Plan, Do, Check, Act
Check
What
happened?
Measurement
Assessment
Analysis
Do
What
action?
Prepare for implementation
Training
Communication
Implement improvement
Change management
Project management
Plan
What
focus?
Project goals/measures
Set up team
Map process
Measure process
Identify key problems
Find root causes
Identify solution
Plan for implementation
Act
What
now?
Review
Project revision
Standardisation
Share learnings
Further improvement
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1. Identify the team
Build cross-functional team
2. Define the problem
Where, when, etc.
Is/Is not analysis
Process map
Measure and set objective
3. Contain the symptom
Short-term solution
Rescue affected customers
4. Identify root causes
Use FMEA, Five Whys
Identify and check root cause
5. Choose corrective action
Focus on fixing root causes
Set targets and owners for implementation
6. Implement corrective action
Implement to plan
Collect data to prove success
7. Make change permanent
Documentation
Revise targets, FMEAs, etc.
8. Recognise the team
Recognise individuals and the team
Celebrate success
Global 8D
0. Emergency Response Action
Protect the customer
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DMAIC
Define
Measure
Analyse
Improve
Control
Identify champion and owner
Initial assessment of situation
Define scope and goals of project
Map process
Validate measurement system
Calculate process capability
Analyse for sources of variation
Identify potential root causes
Verify actual root cause
Develop solution
Create new process map
Cost / benefit analysis
Standardise
Sustain the gain
Develop control strategy
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DRIVER
A European Lean Six Sigma Improvement Methodology
D
Define
Define the scope and goals of the improvement project in terms of
customer and/or business requirements and the process that delivers
these requirements.
R
Review
Map the as-is process and measure the current process
performance to understand the value-add
I
Investigar
Analyse the gap between the current and desired performance,
prioritise problems and identify root causes of problems.
V
Verbessern
Generate the improvement solutions to fix the problems and prevent
them from reoccurring so that the required financial and other
performance goals are met
E
Execute
This phase involves implementing the improved process in a way
that holds the gains. Standards of operation will be documented in
systems such as EN 9100 and standards of performance will be
established using techniques such as Statistical Process Control
R
Renforcer
Capitalise the improvement by learning the lessons and establishing
process re-assessment for continuous improvement
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Methodology Comparison
1. Identify team
2. Define problem
3. Contain
symptom
4. Identify
root causes
5. Choose
corrective action
6. Implement
corrective action
7. Make change
permanent
8. Recognise the
team
Define
Measure
Analyse
Improve
Control
Do
Act
Check
Plan
PDCA DMAIC 8D
Define
Review
Investigar
Verbessern
Execute
DRIVER
Renforcer
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DRIVER
A holistic approach
DRIVER training also includes project management & change management
Variation Waste
TIME
COST

QUALITY
Process
Improvement
Lean Six Sigma
OAKLAND
CONSULTING
Lean Principles

Cost

Quality
Time
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Lean Principles
Lean principles are based on the Toyota Production System (TPS)
TPS was developed after benchmarking the Ford Motor Company
River Rouge plant in Detroit in the 1950s.
The key characteristics of TPS / Lean are:
> Only producing what is required, when it is required
> Close links throughout the supply chain just in time
> Producing right first time
> A lean mindset & company culture
> The elimination of non-value added activity (waste)




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World Class Companies: NVA = 80% TTT
Remove Waste, dont Improve the Value-Add
Total Throughput Time
=
Value-
add time
Non-Value Add +
Other time
+
Lean
Eliminate Waste to Improve the Value Stream
Usual Focus
Work longer-harder-faster,
add people, complexity or
equipment
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Typical NVA = 99% TTT
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Over-production
Motion
Inventory
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5 4
3
2
WAS
TE
Waiting
Defects (Scrap/Rework)
Over-processing
Transportation
The 7 wastes
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LEAN Concepts
Standardised Work
Waste Elimination
Parallel Processing
Cell Layout
Batch Reduction
Quick Changeover
Line Balancing

Other Concepts
Visual Management
5 S
Error Proofing
A Lean Example
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Workshop Discussion
Are Lean principles only applicable to manufacturing processes?






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Six Sigma Overview

Cost

Quality
Time
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What is Six Sigma?
Six Sigma is focused on improving the quality of our products and
services

How do we define the term quality?

The generic definition of quality is meeting or exceeding the customer
requirements

The customer of a process can be internal or external

Therefore, Six Sigma improves quality, thus, improving customer
satisfaction


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Six Sigma
Satisfying the Customer
Defects Defects Acceptable
LSL USL
Customer Requirement

Process Performance

Sigma is a capability metric that compares process
performance against customer requirements
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Is 99% Quality Good Enough?
6 Sigma
99.99966% Good
1 short or long landing every 5 years
3.8 Sigma
99% Good
2 short or long landings at an airport per
day (200 daily flights)
Unsafe drinking water for almost 15
minutes each day

Unsafe drinking water one minute every
seven months
5,000 incorrect surgical operations per week
(500,000 operations per week)

1.7 incorrect operations per week
10,700 defects per million opportunities 3.4 defects per million opportunities
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Quantifying Process Capability
VARIABLE DATA
Cp
Pp Ppk
Cpk
ATTRIBUTE DATA
DPMO DPU PPM
}

Sigma is a universal measure of process performance

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Variable process capability is the ability of a process output to fit between the
specification limits which are defined by the customer requirements.
Variable Process Capability Analysis
4 3 5 6 7 4 3 5 6 7
Can this distribution from a process output
fit between the specification limits of 5

1?
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LSL USL
Tolerance
Process spread
LSL USL
Mean

Capability is an assessment of: process spread as a ratio of the process
tolerance. Cp / Pp
Cpk / Ppk is the location of the process mean with respect to both
process specification limits.
Variable Process Capability Analysis
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Cp =
Cp =
Cp =
Cp =
Cp =
LSL USL
1
3
2
0.5
1
Workshop Exercise
Cp
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Cpkl = 1
LSL USL
X
Cpkl = 5
X
Cpkl = 1
X
Cpkl = 0.5
X
Cpkl = 3
X
Cpku = 1
Cpku= 1
Cpku = 3
Cpku= 0.5
Cpku = -1
Workshop Exercise
Cpk
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Cp / Cpk Simulation
http://www.lkl.ac.uk/research/technomaths/tools/spctools/
Cp Cpk
The London Institute of Education utilised digital technology to
create a Cp / Cpk training tool to enhance learning in the workplace.
OAKLAND
CONSULTING
DRIVER Process Improvement

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DRIVER
The Process Focus
Optimised Process
3-5 xs
4060 xs: Inputs
Define: Grasp the problem & identify objectives
Review: Map as-is process & current performance
Investigar: Analysis & root cause identification
Verbessern: Solution generation & prioritisation
Execute: Implement solutions to sustain the gain
Renforcer: Share best practice & lessons learnt
Y: Output
3-5 xs
3-5 xs
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Customers of Products and Services
Green Belts
Black Belts
Project Champions
Master Black Belts
DRIVER Deployment Structure
Inverting the hierarchal triangle
Executive
Black
Belts
DRIVER deployment is led by executives to ensure company wide support
DRIVER Project Checklist
Oakland Consulting Plc. All rights reserved.
Define Review Investigate Verify Execute Reinforce

























Develop problem
statement
Identify project
scope
Determine
SMART objective
Formulate project
team with R&Rs
SIPOC map
Define CTQs
Stakeholder map
Develop comm-
unication plan
Develop outline
project plan
Refine & sign-off
Project Charter
Project sponsor
approval
Current state
process map
Identify potential
quick wins
Identify
measurements to
be taken
Develop data
collection plan
Collect data
Calculate
baseline process
capability
(KOMY)
Revisit problem
statement
Project sponsor
approval
Analyse Waste
Lean Toolkit
Analyse Variation
Six Sigma
toolkit
Team brainstorm
to identify root
causes
Document root
causes on Cause
& Effect diagram
Select top 3-5
root causes
Validate root
causes
Project sponsor
approval
Team brainstorm
solutions
Select optimum
solutions
Conduct pilot
study (or FMEA)
Verify
improvements
Future state
process map
Review
stakeholder map
and comms plan
Implementation
business case
(cost / benefit)
Implementation
timing plan
Project sponsor
approval

Implement actions
on timing plan
Select control
techniques (SPC)
Update or create
SOP / SLA
Develop control
metrics (KPIs)
Disengage old
process
Monitor progress
Validate
improvements:
process capability
(compare against
baseline Y)
Handover to
process owner
Project sponsor
approval
Monitor
progress
Share lessons
learnt
(organisation
memory,
newsletters etc)
Thank the team
Celebrate
success
Plan future
activities
Project sponsor
approval
End Date: End Date: End Date: End Date: End Date: End Date:
Key:

Completed
In progress
X Not required
R&R Roles and responsibilities
KOMY Key Ouput Metric Y
CTQ Critical to Quality
SOP Standard Operating Procedures
SLA Service Level Agreement
Project Leader: .........................................................
Project Sponsor: .......................................................
Process Owner: ........................................................
Team Members: .......................................................
Start Date: ................................................................
Project Title:


OAKLAND
CONSULTING
European Aeronautical Defence Sector (EADS)

Military
Transport

Eurocopter

Astrium

Airbus

Defence &
Security

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EADS Version of DRIVER
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MTAD - Improve super plastic forming process EF-2000 slats
Situation : Deviations in slat spar position cause scraps
and repairs at assembly leading to non quality costs and
manufacturing lead-time increase.
Performance :
On-quality 27% spar position values. 8.5% scrap.
132.000 non quality costs
D Stake-holder analysis, DoE training,
Pareto analysis for scoping.
R Process map & key parameters, run
charts, histograms.
I Run charts, Process capability
analysis, Scatter plot.
V Variance & correlation analysis,
Pareto, Rules determination.
ER SPC, KPI monitoring


What has been done Achievements
Context
EF-2000 Slat Superplastic forming process
METRIC

BASELINE

RESULTS
% NON CONFORMING
VALUES (REPAIRS)
73% 23%
%SCRAP 8.5% 1.3%
%CONCESIONS 89% 20%
%HNCS 100% 60%
LEAD TIME 50 days 42 days
WORK IN PROCESS 333,774 280,946
NON QUALITY COST REDUCTION (*) 130.920
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User Help Desk Process Improvement
D Processes identification, Prioritisation,
Voice of Customer, Voice of Business
R Process mapping, waste identification
I Statistical analysis (process capability,
Pareto), root cause
V Solution generation, waste reduction,
external benchmark, business case
E Responsibility charting, implementation
R Full deployment proposal
What has been done
Achievements
Situation :
Information Management integration at company level
with numerous local processes
Performance :
On time Incident Resolution performance fluctuated a
great deal from process to process
Context
Buy-in facilitated by the DRIVER method
Performance increased by 40%
(increase of calls closed by UHD)
Cost base sustainable benefit exceeding
400 K per year for Germany and
France

Performance
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Summary
Oakland Consulting
Process Improvement Methodologies
Lean Principles
Six Sigma Overview
DRIVER:
Process Focus
Deployment Strategy
European Aeronautical Defence Sector (EADS)
EADS DRIVER Case Study
Questions & Answers




OAKLAND
CONSULTING
Questions and Answers


Paul White
Oakland Consulting