Step 3: Create Process Flowcharts and Conduct

The goal of this step is to aid the Lean Six Sigma team in fully understand- ing the business processes and capabilities of the facility. An understanding of these processes is crucial in developing alternatives to improve quality and reduce costs. A process flowchart is a hierarchical method for display- ing processes that illustrates how a product or transaction is processed. It is a visual representation of the work flow either within a process or an image of the entire operation. Process mapping comprises a stream of activities that transforms a well- defined input or set of inputs into a predefined set of outputs.

A well- developed process flowchart or map should allow people unfamil- iar with the process to understand the interaction of causes during the work flow and contain additional information relating to process improvement

78 Lean Six Sigma for Engineers and Managers: With Applied Case Studies

(such as bottlenecks and points of failure). Process mapping is a way to iden- tify the various activities of the process and show their interrelationships [2]. A well- defined map must address the following:

• Process has a purpose.

• Process has beginning and end states. • Process has needs or inputs.

• Process must have a clear target performance.

• Process output does vary due to uncontrolled sources of variation. • Process must be evaluated based on its mean or typical performance,

as well as range between worse and better performance levels.

Figure 8.12 displays an example of a process map. Notice that it starts with the customer at the top and relates all processes from a value- added perspec- tive as perceived by the customer. The process map is a great tool for the Lean Six Sigma team to understand how a product is made or a service is performed. It allows for a common frame of reference for the team to make decisions, identify improvement opportunities, and bottlenecks.

Lean Six Sigma Records Review

In order for the Lean Six Sigma Team to begin the assessment, please compile the following items and complete the attached questionnaire. If additional space is needed than what is provided on the questionnaire, please attach sheets.

Please provide the following: 1. Major Equipment List

2. Production Schedule (representative of a year) 3. Company Brochure or Product Information 4. MSDS Sheets

5. Facility Layout (hard copy plus CAD copy, if available) 6. Process Flow Diagrams

7. Receipts from each supplier and utility provider (representative of one year)

8. Please indicate which safety items the waste assessment team will need to enter your facility:

9. Safety Glasses

Steel toe Shoes Hard Hats Hearing Protection

Other _______________________________________________________ FIGURE 8.8

79 General Approach to Implement Lean Six Sigma

To create a process map, it is best to first define the starting and ending points of the process that will be studied (the process map will begin and end at these points). Oftentimes this may include working with suppliers and internal customers if the process to be studied encompasses multiple facilities. Figure  8.13 displays a supplier, input, process, output, and cus- tomer (SIPOC) diagram and is used to expand upon the process map to iden- tify stakeholders in the operation [2]. The benefit of this tool is to identify all variables that affect the process’s performance and then prioritize them so that the team may take action. The SIPOC diagram is a tool that allows for a

Section 1: Company Information

Section 2: Forklift Data

1. Number of forklifts _____________________

2. Fork lift fuel type: gasoline/propane/electricity/natural gas Date: ____________________

1. Company Name: _______________________________________________________________ Address:______________________________________________________________________ Company Contact Name: _________________________________________________________ Phone:__________________________ Fax:_______________________________

Purchasing department contact: ___________________________ phone: ___________________ Janitorial services contact: _______________________________ phone: ___________________ Engineering department contact: __________________________ phone: ____________________ Environmental services contact: ___________________________ phone: ____________________ 2. Primary SIC Code: ______________________ Secondary SIC Code (s): ____________________ 3. Number of Shifts: _______________________ Shift times: From: To: Employees Per Shift: First: _____________ First: _____________ - ___________ Second: _____________ Second: _____________ - ___________ Th ird: _____________ Th ird: _____________ - ___________ Total Employees: ___________________________

Days per year the plant is in production? _________________________________________ 4. What is the labor and benefi t rate for hourly employees? (if necessary, break out classifi cations) ___________________________________________________________________________________ 5. Square Footage of Facility: ____________________

What is the cost per square foot of production space or warehousing space?________________ 6. What is the number of products produced last year? (breakdown by product)_______________ _________________________________________________________________________________ What is the company’s Minimum Attractive Rate of Return (MARR) and tax rate?___________ _________________________________________________________________________________ 8. What are the approximate annual sales for your company? _______________________________ 9. Has a Lean or Six Sigma assessment ever been conducted before? Yes No

FIGURE 8.9

80 Lean Six Sigma for Engineers and Managers: With Applied Case Studies

common frame of reference for the entire supply chain to better understand the process and the interconnections . The SIPOC diagram is typically cre- ated early in the Define stage as it “frames” the problem for the entire team to baseline improvement initiatives.

Once the team has determined the beginning and ending activity steps, the mapping process can begin. Oftentimes, interviews with operators and

Section 3: Process Information

1. Briefl y list your company’s products and/or services: _________________________________ ______________________________________________________________________________ 2. How would you rate current levels of productivity and cost reduction?

Average Above Average Below Average

3. Please explain any reasons for this variation in production or production trends: _________ ________________________________________________________________________________ 4. Please indicate all areas which are present at this location:

Storage Research and Development Design Shipping/Receiving Lab Work Manufacturing Offi ce Fabrication

Retail Inventory/Warehousing

Other __________________________________________

5. Please indicate all manufacturing processes currently at this location:

Anodizing Grinding Pickling Coating Heat Treating Polishing Blending Kiln Firing Printing Brazing Machining Rolling Cleaning Milling Shearing Degreasing Mining Slitting Electroplating Molding Stamping Etching Painting Welding

Extruding Paint Strip Other _______________________

Section 4: Energy Prices and Usage

1. Electricity cost per kilowatt-hour________ and usage last year (kilowatt hours) __________ 2. Piped Natural Gas cost per therm or 100 cubic feet _____ and usage last year ___________ 3. Liquid Propane Gas (LPG) cost per gallon _________ and usage last year ____________ 4. Fuel Oil cost per gallon _________ and usage last year _________________

FIGURE 8.10

81 General Approach to Implement Lean Six Sigma

front- line employees are required to understand the process steps and link- ages better. Some key points to process mapping include:

• Keep it simple.

• Start at a high level first.

• Involve the people closest to the process. • Walk through the process yourself. • Think end to end.

• Work with a small group of three to seven people. A larger group can make the activity cumbersome.

Below are the three general steps to create a process map:

1. Begin by stating the intention or desired goal to create a process map for activities completed between start- step A and stop- step B. 2. Document the activities that people do between steps A and B on self-

adhesive notes. Attach the notes to a wall, flipchart, or whiteboard in

Section 5: Corporate Considerations

1. Does your company have a written quality policy? Yes No If yes, does this policy include ISO 9001 integration? Yes No

2. Is there a cost reduction program in place? Yes No

Is there a quality management program in place? Yes No Is there an employee involvement program to improve operations? Yes No

If yes, please explain your employee involvement program: _____________________________ _________________________________________________________________________________ 3. What are the priority areas where quality and cost reduction eff orts should be focused? ____ __________________________________________________________________________________ __________________________________________________________________________________ 4. Please list any Six Sigma green belts, black belts, or master black belts in the organization: _________________________________________________________________________________

5. Please indicate any barriers to the Lean Six Sigma implementation Inadequate performance

Corporate policy Engineering specifi cations Price

Other __________________________________________________ COMMENTS:

FIGURE 8.11

82 Lean Six Sigma for Engineers and Managers: With Applied Case Studies

the order in which they are normally completed. Begin documenta- tion at a high level and then move into additional process maps that provide greater detail.

3. Document the process maps. Schedule a meeting to review the information. Make sure to verify and clarify the activities and their owners. Also, look for any immediate opportunities to create “quick wins.” Issue Resolved by Self-Help Issue Span Customer Span No No Yes Yes Documentation Self-Help Solution Can I Handle? How to Obtain Support? Call ACD Staff Documents Only After Research Yes Web Based Support Solution Suitable and Complete? Callback Research Callback Research Only After Research Can I Handle? Can I Handle? No. Yes No Staff 2 Further Escalation Loop(s) No Yes Issue Resolved by Call Center Solution Suitable and Complete? “Close” Issue FIGURE 8.12 Process map.

83 General Approach to Implement Lean Six Sigma

In order to identify areas for improvement, processes must be broken into subprocesses. A subprocess operates at a more detailed level than a core pro- cess and gets into who does what and why on a daily basis. Core processes must be broken down into enough detail to understand, monitor, manage, and analyze performance. As a general rule, processes must be described at a third level, as shown above, before improvement teams will be able to deal with them adequately. Figure 8.14 displays a data collection form that can be used when creating the process map and flowchart and Figure 8.15 displays the process charts that were created during the case study example.

Oftentimes when creating a process map, additional data need to be gath- ered to describe the process in terms of process times, production rates, and capacities. This may involve shop floor data collection, time studies, and throughput analyses. Section 8.3.4 provides additional details to collect data effectively and efficiently.