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

Lean Six Sigma

About SSCX
Experience Expertise Key Learning Points

Our Experience
Integrating Freeport Mining Concentrating Divisions human capital and management commitment with SSCXs quality service is what drives us forward in accelerating cost transformation
Iyas Kusnadi Concentrating Division - Freeport Indonesia

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!

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!
Sasmita Director 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

Commitment

Strategic Alignment
Infrastructure
Calibrate Vision

Discipline
Method

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 Shorter aspek yang dikorbankan. Delivery
Times

Improved Product Quality

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

New Performance Paradigm

Shorter Delivery Times Contohnya, untuk mencapai penurunan

Paradigma baru merubah ini, justru sebuah peningkatkan di salah satu aspek akan memperbaiki kinerja dari aspek lain.

Improved Product Quality

waktu delivery dilakukan dengan eliminasi rework, scrap, dan inefisiensi lain di proses produksi, yang berarti naiknya kualitas produk dan turunnya biaya produksi!
Lower Product Costs

Lean Six Sigma Strategy

Untuk mengimplementasikan Lean Six Sigma paradigma baru ini, perusahaan beralih ke dua strategi process improvement Lean dan Six Sigma. Shorter Improved Product Lean fokus pada penurunan lead time Delivery Times Quality dan cost. Six Sigma fokus pada peningkatkan kualitas dan cost. Lean Six Sigma mengkombinasikan kelebihan kedua strategi ini.
Lower Product Costs

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

Continuous Improvement Roles

Champion

Steering Committee

Master Black Belts

Experienced Experts Train and coach Support large/complex projects Full time Corporate/Regional

Lead and Communicate change Ensure Strategy Link Line project Level Reports results Monitor Project progress Remove Roadblocks Line Management

Lead Corp and BG deployment design and roll-out Remove roadblocks

Project Shopfloor, Clerical Provide project-specific Level support Green Belts Use single tools Part time Manager, Engineer, Lead and Facilitate problem solving Process Train and coach project teams Part time 25-30% on projects

Project Team Members

Project sponsor & owner Implements solutions Owns financial results Part time

Full Deployment vs Sniper Cell Approach

5+:1 4:1 Critical Zone of Business Process Improvement Strategic Integration Infrastructure Disciplined Execution

Successful deployment

$ Benefit

3:1

Sniper Cell approach Project Discipline Only

2:1

Less Successful deployment

1:1

$0

3 Years

Lean Six Sigma: Life of a Project

Project Identification
Operating Agenda
Leadership Commitment
Initiatives Capex ($M) Value Creation ($M) Proposed Timing and Milestones
2003 2004 2005 2006 2007 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4

VoB, VoC, VoP, VoE

Sources Three lenses/Tools Long-List of Potential CI Projects
Performing financial analysis identifies gaps in performance to generate project ideas

Benefit-Effort Matrix

Strategic Agenda

Voice of Business (VoB)

1. Plant X Optimization 2. Plant Y Expansion 3. Partial closure of Plant Z and Harvest 4. Profitable extension of participation in Market X 5. EHS FIRST Implementation

40 450 100

90 200 75

(from MaxVal Strategy Development)

Operating Agenda

Voice of Customer (VoC)

Identifying gaps in meeting customers needs (critical customer requirements) provides ideas for projects Process analysis links the business by process (versus functions) and gives perspective on project ideas

40

50

na

na

Others
Key BU Decision Point Request for Capital from ExCom Expenditure of Capital Action Target Completion

Voice of Process (VoP)

Bottom - up EHS Regulatory

Determine Highest Value Initiatives

I.D. Potential Projects

Perform Initial Screen

Detail Projects ID Sponsor

Project Selection/Release
Projects People Plans 1. 2. 3. 4. 5. Ann Bob Joe
Define
Stop

Project Execution

Gate Review

Measure
Stop

Gate Review

Analyze
Stop

Gate Review

Improve
Stop

Gate Review

Control
Stop

Gate Review

Validate
Stop

Gate Review

$$
Celebrate Wins / Report Results / Share Lessons Learned Control for Long Term

Prioritize Projects

Commit Resources

Project (Team) Launch

Monitor Project Results

CID

Overlap Area

Sponsor

Project Selection
Identify Potential Projects Screen Initial List of Potential Projects Scope and Define Projects Prioritize List of Defined Projects

Pass the Operating Agenda initiatives through filters to identify potential CI 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

Voice of the Customer

Voice of the Business Voice of the Process Voice of the Employee Tool to identify gaps/potential projects

Assign potential projects to project sponsors for better definition of the project (creation of the project charter) Complete Draft Project Charters/Definitions

Evaluate projects using Evaluation Criteria Update Benefit/Effort Matrix Review plotted results Rich discussion/Prioritize projects Schedule project launches based on resource availability

Project Selection
Long-List of Potential CI Projects

INPUT: Operating Agenda Initiatives

Convergent, Orderly, Iterative Activity

Generate/ Discover Potential Projects

Define and Prioritize Projects

INPUT: Bottom-up Ideas

Divergent, Messy, Iterative Activity

Projects-in-Process Management
Sequenced & Gated Projects

Project Queue

Define
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

Measure
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

Analyze
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

Improve
Main Activity: Piloting the solution on a small scale Implementation of the overall solution Verification of improvement (the impact of the solution)

Control
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

Quick Win and Kaizen Blitz

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

Project Roadmap
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Initial Study Executive Briefing Infrastructure Development Project Selection and Prioritization Green Belt Training Coaching Infrastructure Development Project Selection and Prioritization Black Belt Training Green Belt Training Black Belt Coaching Green Belt Coaching Black Belt DEEP DIVE Green Belt Training Black Belt Mentoring Green Belt Coaching
Equipping

LOW

1st Wave

Equipping

LOW

1st Wave 2nd Wave

Equipping

3nd Wave

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.