Process Improvement:
Integrating Lean ‐ Six Sigma –
Ergonomics
Anand Subramanian, PhD, CPE, CSSBB Email: anands@jfa‐inc.com Brandy Farris Ware, PhD, CPE, CSSBB Email: bw@jfa‐inc.comAgenda
1. About JFAssociates, Inc. 2. Objectives of this Webinar 3. What is HPI? 4. Case Studies a. Healthcare b. Hospitality c. Manufacturing 5. How does LEAN fits into HPI? 6. How does Six‐Sigma fit into HPI? 7. How does Ergonomics fit into HPI?About JFAssociates, Inc.
• Established in 2003 • Minority owned small business • Specializes in providing scientific and engineering consulting services to companies, government agencies, and law firms • Industries served include food processing, healthcare, hospitality, manufacturing, retail, and warehouse and distributionIntroduction
• JFAssociates’ capabilities • Time & motion study • Ergonomics • Process improvement • Health & safety • Other industrial engineering areas • JFAssociates’ approach – Quality, Cost Efficient, Practical SolutionsObjectives of this Webinar
At the end of this webinar you should understand: • What is Holistic Process Improvement (HPI) • Why a Holistic Process Improvement (HPI) approach is important • How Lean, Six‐Sigma, and Ergonomics work together within HPI • What some organizations have experienced as a result of HPI (including tools and metric)What is HPI?
• HPI = HOLISTIC PROCESS IMPROVEMENT • The term comes from two concepts: • Process Improvement • Holism Holistic Process Improvement takes a multi‐ faceted approach utilizing many methods to achieve system improvements that are cheaper, faster, safer, and more efficient!Case Study: Healthcare
• U.S. healthcare costs exceed those of other countries, relative to the size of the economy or GDP.
Case Study: Healthcare
0 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 $ pe r ca pit a Year Growth in Total Health Expenditure Per Capita, U.S. 2000‐2013 Growth in Total Health Expenditure Per Capita, U.S. 2000‐2013Case Study: Healthcare
• US Healthcare spending • $2.9 trillion in 2013 • 17.4% of GDP • 10 times the $256 billion spent in 1980 • Medication errors are estimated to account for at least 7,000 deaths in the United States alone every year • Costs to the nation are approximately $37.6 million, with $17 million associated with preventable errors. ‐ Institute of Medicine, www.iom.orgCase Study: Healthcare
• Our client hired us to look at their surgical unit operations • JFAssociates identified the following goals: • Remove waste from the processes and hence reduce patient wait time • Reduce room turnover times • Improving first case start time • Improving admissions/registration processesCase Study: Healthcare
• LEAN tools used • Value Stream Mapping • Gemba • 5S • Six‐Sigma tools used • Fishbone diagram • Pareto Analysis • Ergonomics tools used • Workstation Evaluations • Posture Analysis • Job Hazard AnalysisCase Study: Healthcare
‘Patient‐In’ to ‘OR‐In’ Time High Registration staff not at desk Inefficient Registration Process Problems locating patient charts Error in capturing “Patient‐ In” time Patients scheduled to arrive earlier than required Pre‐Op methods varied Physicians not arriving on time Pre‐Op done too early Patient charts are incompleteCase Study: Healthcare
Result of Initial Improvement
Implementation
• Efficient and standardized registration process • Improved patient satisfaction • Reduced ‘Patient In’ to ‘Surgery Time’ • Reduced lost work days due to injuriesCase Study: Healthcare
3.2 3.5 2.9 4.1 4.6 4.9 0 1 2 3 4 5 6Supplies Equipment Workspace
Pre Post 28.1% 31.4% 69.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% Percentage Improvement The staff were asked to rate on a scale of 1‐5 the ease and accessibility of supplies, equipment, and workspace before and after the changes were made
Case Study: Hospitality
• The leisure and hospitality experiences fast changing consumer demands • Aims to provide a home away from home and relief from daily housekeeping tasks. • Consumer’s expect luxury. • super thick mattresses, plush duvets, and decorative bed skirts, and a variety of pillows (Greenhouse, 2006). • Hotels have increased their focus on the bottom line as margins have decreased (Liladrie, 2010).Case Study: Hospitality
• Leisure and hospitality industry provides employment to millions of workers. • Approximately 29% of hotel workers are employed in housekeeping departments as maids and housekeeping staff (BLS, 2010). • Our client hired us to look at their hotel operations with the primary goal of decreasing costs (especially those related to injuries).Case Study: Hospitality
• LEAN tools used • Value Stream Mapping – to identify processes • SIPOC – to identify all contributing factors • 5S • Six‐Sigma tools used • Fishbone diagram • Pareto Analysis • Ergonomics tools used • Lifting Analysis (NIOSH, etc.) • Video Analysis • Job Hazard AnalysisCase Study: Hospitality
• Results • Reduced workers comp costs by 50% (by $1 million) in the first year • Reduced workers comp by an additional 50% during the second year • Established Work SOPs • Decreased cycle times for tasks such as changing duvets and cleaning bathroomsCase Study:
Case Study: Manufacturing
• Client is leading manufacturer of electrical and pneumatic controls • Client was looking to expand business i.e. ramp up production and also introduce new product lines • Client approached JFAssociates to help conduct a feasibility analysisCase Study: Manufacturing
• JFAssociates conducted an extensive review of current state of operations • Identified concerns based on observations • Identified opportunities to improve processes/flow • Recommended a Holistic Process Improvement approach to • Reduce cost • Increase quality • Improve delivery • Improve safetyCase Study: Manufacturing
• LEAN tools used • Value Stream Mapping • Kanban • SMED • Gemba • Six‐Sigma tools used • Brainstorming • SPC • Kano Chart • Ergonomics tools used • Job Evaluation • Job Rotation • Job Hazard AnalysisCase Study: Manufacturing
• Results • Established inventory control by improving space utilization – ICC savings of $250,000 per year • Reduced dock to stock time incoming goods • Established KPIs to track key operational parameters • Improved cross‐functional communication • Improved workstation layout and design – reduced worker injury by 22% • Enforced guidelines for ESD safe areas – workers comp costs reduced by 15% • Developed and enforced guidelines for safety of visitorsLean in HPI
80‐90% of our time is spent on doing things that increase our costs and create no value for the customer! Lean is an organizational transformation aiming to increase customer value by eliminating waste throughout the process. Lean strives to increase the efficiency of operations by closely examining, finding, and reducing non‐value added times and eliminating wastes.LEAN in HPI
• Lean identifies waste within a system • Lean makes existing processes better • Lean includes • Total Lead Time • WIP • Standard Process Time • Takt Time • Value Added v. Non‐Value AddedSix‐Sigma in HPI
• Six Sigma represents a well thought out packaging of quality tools and philosophies in an honest effort to provide rigor and repeatability to quality improvement efforts 6 Sigma = 3.4 defects per million opportunities • Six Sigma can be used in all industries. • Six Sigma is more cost reduction‐oriented than traditional continuous improvement Theme: Elimination of VariabilitySix‐Sigma in HPI
• Six‐Sigma identifies inefficiencies within a system • Six‐Sigma makes existing processes by better by reducing variability and eliminating inefficiencies • Six‐Sigma Includes:Ergonomics in HPI
• Ergonomics identifies problems within the human – work environment • Ergonomics improves process efficiency by matching human capabilities with work demands • Ergonomics Includes • Proactive Analysis • Reactive Analysis • Engineering Changes • Administrative ChangesQ&A
JFAssociates Inc.
Website: www.jfa‐inc.com
