Philosophy, Structure, Voice of the Customer, and Lean

Transcription

1 Chapter 3-3 Philosophy, Structure, Voice of the Customer, and Lean 3-3-1

2 Six Sigma Defined Six Sigma (s) is a customer focused, well defined problem solving methodology supported by a handful of powerful analytical tools. Continuous improvement is driven by the execution of carefully selected projects. The goal of the Six Sigma approach is to take small steps forward and no steps backward

3 From the GE Web Site Customers are the center of GE's universe: they define quality. They expect performance, reliability, competitive prices, on-time delivery, service, clear and correct transaction processing and more. In every attribute that influences customer perception, we know that just being good is not enough. Delighting our customers is a necessity. Because if we don't do it, someone else will! 3-3-3

4 Voice of the Customer The "voice of the customer" is a process used to capture the requirements/feedback from the customer (internal or external) to provide the customers with the best in class service/product quality. This process is all about being proactive and constantly innovative to capture the changing requirements of the customers with time. The "voice of the customer" is the term used to describe the stated and unstated needs or requirements of the customer. The voice of the customer can be captured in a variety of ways: Direct discussion or interviews, surveys, focus groups, customer specifications, observation, warranty data, field reports, complaint logs, etc

5 Voice-of-the-customer is a crossfunctional, systems approach to gathering data on customer needs and perceptions of performance, that translates this data into useful information, highlighting opportunities to respond and foster extraordinary customer experience

6 Definition of Customer Gather the Voice of the Customer Anyone whose success or satisfaction depends on one s actions Analyze Customer Needs Prioritize customer needs

7 Information on QFD. Developed in Japan in the mid 1970s Introduced in USA in the late 1980s Toyota was able to reduce 60% of cost to bring a new car model to market Toyota decreased 1/3 of its development time Used in cross functional teams Companies feel it increased customer satisfaction 3-3-7

8 Quality Function Deployment Is a structured method (house of quality) that is intended to transmit and translate customer requirements, that is, the Voice of the Customer through each stage of the product development and production process, that is, through the product realization cycle. These requirements are the collection of customer needs, including all satisfiers, exciters/delighters, and dissatisfiers

9 Why.? Product should be designed to reflect customers desires and tastes. House of Quality is a kind of a conceptual map that provides the means for inter-functional planning and communications To understand what customers mean by quality and how to achieve it from an engineering perspective. HQ is a tool to focus the product development process 3-3-9

10 QFD Target

11 Who vs. Whats Now vs What Who This Product Components of House of Quality Hows vs Hows Hows Customer Evaluation Now Whats Whats vs Hows Units This Product How Muches Targets Hows vs How Muches

12 Who vs. Whats Now vs What Who This Product Step 1: Who are the customers? Hows vs Hows Hows Customer Evaluation Now Whats Whats vs Hows To Listen to the voice of the customer first need to identify the customer In most cases there are more than one customer consumer regulatory agencies manufacturing marketing/sales Units This Product How Muches Targets Hows vs How Muches Customers drive the development of the product, not the designer

13 Who vs. Whats Now vs What Who This Product Step 2: Determine the customers requirements Need to determine what is to be designed Consumer product works as it should lasts a long time is easy to maintain looks attractive incorporated latest technology has many features Whats Units This Product How Muches Targets Hows vs Hows Hows Whats vs Hows Hows vs How Muches Customer Evaluation Now List all the demanded qualities at the same level of abstraction

14 Step 2: Continued Manufacturing Marketing/Sales easy to produce Meets customer requirements uses available resources Easy to package, store, and transport uses standard components and methods is suitable for display minimum waste

15 Kano Model Basic Quality: These requirements are not usually mentioned by customers. These are mentioned only when they are absent from the product. Customer Satisfaction + Delighted Performance Quality: provides an increase in satisfaction as performance improves Excitement Quality or wow requirements : are often unspoken, possibly because we are seldom asked to express our dreams. Creation of some excitement features in a design differentiates the product from competition. Excitement Absent Satisfiers - Disgusted Fully implemented Performance Basic

16 Kano Model Categorizes Needs Must Be Needs The needs are expected by the customer. Lack of fulfillment results in customer dissatisfaction while fulfillment will not particularly satisfy the customer. More is Better Satisfaction is directly proportional to meeting the needs of the customer. Delighters Customers are not dissatisfied with their absence but pleased when present

17 Example Airline Hotel Must Be Safety Cleanliness More is Better Cheap Tickets Award Points Delighter Vanity Kits Cookies It is critical that the Must Be and More is Better features are present before Delighters become effective in attaining a leadership position

18 What Customers Want Garvin s Eight Dimensions Performance Features Conformance Aesthetics Reliability Durability Serviceability Perceived Quality

19 Dimensions of Service Quality Access: ease of making contact Reliability: consistency, errorfree dependability Responsiveness: willingness to help the customer Security: freedom from danger or risk Tangibles: environment for the service presented Courtesy: supplier s behavior Competence: the right skills and knowledge required

20 Types of Customer Requirements Functional requirements describe the product s desired behavior Human factors Physical requirements Reliability Life-cycle concerns Resource concerns Manufacturing requirements

21 How to determine the Whats? Customer survey (have to formulate the questions very carefully) If redesign, observe customers using existing products Combine both or one of the approaches with designer knowledge/experience to determine the customers voice

22 Who vs. Whats Now vs What This Product Who Step 3: Determine Relative Importance of the Requirements: Who vs. What Need to evaluate the importance of each of the customer s requirements. Generate weighing factor for each requirement by rank ordering or other methods Hows vs Hows Hows Customer Evaluation Now Whats Whats vs Hows Units This Product How Muches Targets Hows vs How Muches

23 Who vs. Whats Now vs What This Product Who Step 4: Identify and Evaluate the Competition: How satisfied is the customer now? The goal is to determine how the customer perceives the competition s ability to meet each of the requirements it creates an awareness of what already exists it reveals opportunities to improve on what already exists The design: 1. does not meet the requirement at all 2. meets the requirement slightly 3. meets the requirement somewhat 4. meets the requirement mostly 5. fulfills the requirement completely Whats Hows vs Hows Hows Whats vs Hows Customer Evaluation Now Units This Product How Muches Targets Hows vs How Muches

24 Who vs. Whats Now vs What This Product Who Step 5: Generate Engineering Specifications: How will the customers requirements be met? The goal is to develop a set of engineering specifications from the customers requirements. Restatement of the design problem and customer requirements in terms of parameters that can be measured. Hows vs Hows Each customer requirement should have at least one engineering parameter. Whats Hows Whats vs Hows Customer Evaluation Now Units This Product How Muches Targets Hows vs How Muches

25 Who vs. Whats Now vs What This Product Who Step 6: Relate Customers requirements to Engineering Specifications: Hows measure Whats? This is the center portion of the house. Each cell represents how an engineering parameter relates to a customers requirements. 9 = Strong Relationship 3 = Medium Relationship 1 = Weak Relationship Blank = No Relationship at all Whats Hows vs Hows Hows Whats vs Hows Customer Evaluation Now Units This Product How Muches Targets Hows vs How Muches

26 Who vs. Whats Now vs What This Product Who Step 7: Identify Relationships Between Engineering Requirements: How are the Hows Dependent on each other? Engineering specifications maybe dependent on each other. +9 = Strong Relationship +3 = Medium Relationship +1 = Weak Relationship -1 = Weak Negative Relationship -3 = Medium Negative Relationship -9 = Strong Negative Relationship Blank = No Relationship at all Whats Units This Product How Muches Targets Hows vs Hows Hows Whats vs Hows Hows vs How Muches Customer Evaluation Now

27 Who vs. Whats Now vs What This Product Who Step 8: Set Engineering Targets: How much is good enough? Determine target value for each engineering requirement. Evaluate competition products to engineering requirements Look at set customer targets Use the above two information to set targets Hows vs Hows Hows Customer Evaluation Now Whats Whats vs Hows Units This Product How Muches Targets Hows vs How Muches

28 Importance Rankings The House of Quality Quality Function Deployment s House of Quality Correlation Matrix 6 3 Design Attributes 1 Customer Needs 2 4 Relationships between Customer Needs and Design Attributes 5 Customer Perceptions Establishes the Flowdown Relates WHAT'S & HOW'S Ranks The Importance 7 Costs/Feasibility 8 Engineering Measures

29 Design for Manufacturability is the general engineering art of designing products in such a way that they are easy to manufacture. The basic idea exists in almost all engineering disciplines, but of course the details differ widely depending on the manufacturing technology. This design practice not only focuses on the design aspect of a part but also on the producibility. In simple language it means relative ease to manufacture a product, part or assembly

30 Value Engineering/Analysis is a systematic method to improve the "value" of goods or products and services by using an examination of function. Value, as defined, is the ratio of function to cost. Value can therefore be increased by either improving the function or reducing the cost

31 Six Sigma Philosophy and Organization A brief synopsis of the key points of the six sigma philosophy that Green Belts and Black Belts are expected to be knowledgeable of

32 What Distinguishes Six Sigma from the Other Quality Improvement Methods? a. The use of Greek in its name b. Better marketing c. The use of statistics d. Justifying improvements in the language of management Does the name Mikel Harry ring a bell?

33 Savings A cable TV company reduced customer service calls by over 50% resulting in an annual savings into 7 figures. A hospital increased captured revenue by over half a million annually and save over $300,000 yearly by reducing no show and cancellation rates for procedures. A soft drink company decreased time for Engineering Change Notice from 56 days to 7 days

34 More Savings A hospital reduced the time required to provide timely information about lab tests and saved over $140,000 annually. A drug store chain reduced inventory of perishable pharmaceuticals by $173 million per year. A telecommunications company saved $5.2 million annually by improving the scheduling system for technician dispatches

35 Six Sigma Structured Approach Six Sigma involves a series of steps designed to lead the organization through the gauntlet of process improvement. Major steps include: Define Measure Analyze Improve Implement Control (Standardize and Validate)

36 Memory Trip Can you remember back to your first science class and the scientific method? Are there any similarities between the scientific method and DMAIIC?

37 Define The first step is to define. This includes identifying the problem and setting the scope. It also includes the following: Identifying customers and requirements? Determining the outputs? Determining the inputs? Determining what is critical Determining what to measure Determining what we want to accomplish Tools sometimes used Process Analysis Flow Charting Check Sheets Pareto Analysis Cause and Effect Diagrams FMEA (Failure Mode Effects Analysis)

38 Measure The second step is to measure Identify and verify critical quality characteristics Estimate current capability Determine where you are relative to desired objectives Process Capability Percent Nonconforming Capability Indices Measurement Systems Analysis Gage R&R Operational Definitions Cost of Quality

39 Analyze The third step is to analyze. This makes sense out of the data that is collected during measure. This shows the amount of improvement that might be possible to make the critical quality characteristic best in class. Possible Tools Descriptive Statistics Inferential Statistics Probability

40 Improvement In order to improve, possible improvements are evaluated in a logical and planned fashion Design of Experiments ANOVA Factorial Simulation Cost Justification FMEA Project Management Correlation Regression Linear Multivariate

41 Sources of Improvements

42 Implement Improvements are implemented in a logical and planned fashion A project plan is developed and managed

43 Control (Standardize and Validate) The final stage is control. In the control phase measures have been implemented and steps are taken to make sure improvements are maintained. We also validate that the improvement the reduction in variation has actually occurred and the suggested benefits have been seen. Some Tools Statistical Process Control Cost of Quality Cost Analysis ISO

44 DMAIIC Overview THE OPPORTUNITY Improve on what matters most to the client Significantly impact the bottom line CONTROL AND ADJUST NEW PROCESSES Measure improvements and breakthroughs Report dashboard, scorecard data and client feedback Execute plans, overcome barriers Transition to the new process IMPLEMENT IMPROVEMENTS Client Driven, Consistent, Metrics Focused, Results Oriented IMPROVE PROCESS EFFICIENCY MEASURE THE CURRENT PERFORMANCE Map the process, gather initial performance data and determine current Sigma level Obtain client input, factors Critical to Quality (CTQ) ANALYZE THE CURRENT PROCESSES Perform causeeffect analysis to determine reasons for gaps in performance Determine breakthroughs, design future state: new process, new Sigma level Create dashboards, scorecards and plans

45 Implementation Strategy Top Management Support and Participation Project Identification Resource Allocation Measurement and Feedback Data Based Decision Making

46 Implementation The process of implementing Six Sigma must be a top down approach. Responsibility must lie with senior management. Senior management must drive the process through the organization. Elements of this include careful selection of projects, allocation of resources, and decisions based on the measurements

47 Top Management Support / Participation Leaders of successful Six Sigma implementations make it a top priority. They devote enormous amounts of thought, energy, time, and personal resources to making sure the Six Sigma succeeds. In effect, they challenge employees. Would you tell me please which way I ought to go from here? asked Alice. That depends a good deal on where you want to get to, said the Cat. I don t much care, said Alice. Then it doesn t matter which way you go, said the Cat

48 Six Sigma Challenge Senior leadership establishes its Six Sigma vision, customer satisfaction promise, goal, and new measurement indices This vision should fit within context of existing quality policy Establishes the common goal of reducing variability

49 Develop Structure Six Sigma has used the language Steering Committee Champion Yellow Belt Green Belt Black Belt Master Black Belt Master Black Belt Trainer Process Owner

50 Steering Committee Identifies projects Identifies black belts Allocates resources Monitors progress Reviews effectiveness Establish implementation strategy and policies

51 Champions Key management personnel who provide support, resources, and encouragement for the process Champions require a more in-depth understanding of the methods used, especially the measurements and the interpretation of the process measurements

52 Green Belt A green belt is an introductory participant in the process. Green belts understand concepts of problem solving, data collection, data interpretation, variation, process capability, and cost analysis

53 Black Belt Black belts are thoroughly trained individuals knowledgeable of all the analysis tools Black belt training is typically structured around a project where the analysis tools are applied as part of the training

54 Black Belt Black belts perform the following tasks: Teach Coach Transfer knowledge Identify opportunities Influence the organizational use of the Six Sigma methods

55 Master Black Belt The master black belt has demonstrated proficiency by documenting saving in excess of a predetermined amount. Master black belts also are competent teachers. Title is one given as recognition for outstanding performance or as the result of additional training, including train the trainer

56 Process Owner A process owner is the individual who has the ultimate authority to change a process. The process owner should be identified for every project or task that is entered onto an organizational metric tracking system. The process owner: Monitors the performance of his/her process through key indicators Works with all Six Sigma project teams in the area to enable them to successfully complete their projects Manages the process after completion to the Six Sigma project to sustain the gains made. Continues to improve and/or innovate the process through the application of the PDCA cycle

57 Outside-In Thinking Six Sigma requires us to look at our business from the customer s perspective, not ours. In other words, we must look at our processes from the outside-in. By understanding the transaction lifecycle from the customer s needs and processes, we can discover what they are seeing and feeling. With this knowledge, we can identify areas where we can add significant value or improvement from their perspective

58 Data Based Decision Making Obtaining a return on your Six Sigma investment requires that you make use of the information you obtain. In successful Six Sigma organizations both strategic and operational decisions are guided by facts and data. EOE

59 The Process Define Measure and Analyze No Improve, Implement and Control Key Process Identified Data Collection Strategy Causes Identified? YES Propose Improvement Plan ID Customer Expectations Histogram No Implement Plan Process Flow Analysis Scatter Diagram Run Chart Control Chart Objectives Met? Collect & Analyze Data Root Cause Analysis (Cause & Effect, Pareto) Baseline Measures YES Compare with Previous Results Document & Standardize Monitor

60 Lean (Toyota Production System) Purpose: Reduce Waste Methodology: Identify Customer Value Draft Value Stream Map Improve Stream Remove Waste Balance Workload Flow the Process and Pull the Service/Product Effects: Improved Delivery Time Reduced Waste Less Cost $$$

61 The World of Lean Enterprise Problem Solving Standardized Work 5S / Visual Factory Lean Layout Lean Enterprise Kanban Error Proofing Total Productive Maintenance Quick Changeover 61

62 Observables in Lean Operations: Reliable Systems and Virtual Uptimes for Operations. Consistently Capable Processes Capable, Reliable Suppliers Minimal Non-Value Added Work Point of Use Layouts, and Processes Without Excessive Movement and Bulk/Mass Storage Systems Just-In-Time Delivery and Shipping Involved Workforce No Investment for Non-Value Added Equipment/Resources 62

63 Lean Is.... According to... Michael George Lean is a process philosophy with three purposes To eliminate wasted time, effort, and material To provide customers with make-to-order products To reduce cost while improving quality Henry Ford, 1926 (Ford Motor Company) One of the most noteworthy accomplishments in keeping the price of Ford products low is the gradual shortening of the production cycle. The longer an article is in the process of manufacture and the more it is moved about, the greater is the ultimate cost. 63

64 Lean Enterprise...by Definition Means: Achieving Customer Expectations Through The Use Of The Absolute Minimum Amount of Man, Machine, and Material. This Is Achieved By Continuous Pursuit, Identification and Elimination of Waste. And... Waste Elimination Requires a Systematic Approach 64

65 Lean Enterprise Elements Employee Involvement Employee Training Quality TPM Total Productive Maintenance Man/Mach. Effectiveness Lean Enterprise Level Schedules & Pull Material Flow Workplace Organization Supplier Partnership Simultaneous Engineering Visual Controls 65

66 Lean Enterprise Goal: Higher Productivity = Less Material, Labor and Indirect Inputs for the Same or Higher Output. Less Delay = Faster response, Better Forecasts, and Less Administration Just-In-Time Production Adaptable to Demand Changes Defect-Free Pull Flexible Workforc e Parts Eliminate Material Waste Error Proofing Reduced expediting Kanban Simple Systems Small Lot Production Reduced Lead Time Single Piece Flexible Production Less Direct Less Indirect Less Handling Less Idle Space Reduced Scrap & Rework Reduced Inspection Smooth Production Eliminate Process and Conveyance waste TPM Man Machine Effectiveness Total Quality Assurance Program Set-up Reduction Less Inventory Reduced Storage Std Work Multi Function Ops Material Flow Integrate d Layout Supplier Involvement Respect Visual Control/Workplace Organization Element Partnership Increased Morale Employee Involvement Improvement Activities By Small Groups Education & Training Trust Result 66

67 Components of a Lean Enterprise System One Piece Flow/ Small Lot Production Pull Systems Work Place Organization Visual Controls Standardized Operations Total Productive Maintenance Multi-Function Operators 67

68 Value Anything the customer is willing to pay you to do. Anything that fulfills customer requirements. Anything that increases the satisfaction of the customer. 68

69 Non-Value Some Examples Approving Walking Batching Mistakes Waiting Searching 69

70 Introduction to Value Stream Mapping Definition of Value Stream A Value Stream includes all elements (both value added and non-value added) that occur to a given product from its inception through delivery to the customer. Requirements Design Raw Materials Parts Manufacturing Assembly Plants Distribution Customer 70

71 Value Stream Maps 1. Define the Current State 2. Lead to the Future State

72 Future State Questions 1. What does the customer really need? 2. How often will we check our performance to customer needs? 3. Which steps create value and which are waste? 4. How can we flow work with fewer interruptions? 5. How do we control work between interruptions? How will work be prioritized? 6. Is there an opportunity to balance the work load and/or different activities? 7. What process improvements will be necessary? 72

73 Elimination of Waste: Muda A Japanese term for anything that is wasteful and doesn't add value. Waste reduction is an effective way to increase profitability. A process adds value by producing goods or providing a service. A process consumes resources. Waste occurs when more resources are consumed than are necessary to produce the goods or provide the service. 73

74 Muda The Seven Wastes Overproduction Inventory Defects (Repair / Rejects / Rework / Correction) Motion Processing (Overprocessing) Waiting Transportation (Material Movement) Plus One More Skill Abuse 74

75 5 S Workplace Organization 5S is used to diminish the slack hidden in plants and offices finding the dirt and washing it out. Dirt in a plant includes unnecessary work-inprocess inventories defective inventories unnecessary jigs, tools, methods Unneeded carts, equipment, tables Dirt in an office includes Unnecessary documents, reports, stationery 75

76 Standard Work Definition: Best Practice An effective process to systematically organize work elements to support the operator and assure health and safety. Work is designated Operator or Machine and broken into individual elements. Employees should be involved with documenting work elements in maintaining the standard process in an environment supportive of health and safety. 76

77 VS. Review A central planning approach which determines and disseminates production schedules to all processes simultaneously. Characteristics Include: Product delivered late High levels of waste Low productivity An approach where you go to the preceding process to withdraw the necessary units in the necessary quantity at the necessary time. The preceding process produces only enough units to replace those that have been withdrawn. The production schedule is determined by one process (the pacemaker). Characteristics Include: Product delivered when needed Low levels of waste 77

78 Lean and Six Sigma Together Define Measure Analyze Improve Implement Control Benchmarking FMEA IPO Diagram Kano Model KB Management SIPOC QFD VOC Task Analysis VSM Confidence MSA NGT Affinity Diagram Brainstorming C&E Diagram DFSS DOE Kanban Pairwise Ranking Flow Capability Time Value VSM Waste Analysis F test, T test Fault Tree Analysis FMEA Histogram Pareto Regression Scatter Mistake Proofing Standard Work Takt Time TOC TPM Work Cell Design Visual Management 5 whys 5S Control Charts Control Plan Reaction Plan Run Charts SOP