Lean Six Sigma Methodologies. Process Improvement

(1)

Lean Six Sigma Methodologies

and

Process Improvement

Presented by

Lenez Hendrix,

CMDSM, EMCM

,

MDC

Certified Lean Six Sigma Black Belt

Xerox Corporation

(2)

Six Sigma & Lean

What is Six Sigma:



It’s a quality level measurement …3.4 defects per million opportunities (DPMO)



It’s a process …DMAIC



It’s a critical thinking, disciplined

approach to process improvement

Six Sigma

…

• Emphasizes the need to recognize opportunities and eliminate defects as defined by

customers

• Recognizes that variation hinders our ability to reliably deliver high quality services

• Requires data-driven decisions using a comprehensive set of quality tools and

Reduce Variation

After

(3)

Six Sigma & Lean

What is Six Sigma:

Sigma

:

Sigma is a measurement of dispersion, of

variation. It describes how far data deviates from the

average. It’s used to describe how good or bad the

performance of a process is. Basically, Sigma is a

measurement of how many mistakes a process makes in

delivering it’s outputs.

Six

is the level we are shooting for. Sigma levels range

from 1-6, with six being the highest. It is used because it

permits a valid comparison of dissimilar things with a

(4)

Six Sigma & Lean

6 

(99.99%) = 3.4 defects

per million opportunities

(DPMO)

EXAMPLES:

3.8 

(99%) = 10,000 defects

per million opportunities

(DPMO)

EXAMPLES:

1.7 incorrect

operations/week

5,000 incorrect surgical

operations/week

1 abnormal landing every 5

years

2 abnormal landings @

airports/day

(5)

Six Sigma & Lean

What is Lean Six Sigma:

Lean:

means speed. It is concerned with increasing the velocity of a product or

service through an internal value-chain by cutting waste. The more wasted time and

effort that can be eliminated or reduced in the process, the faster it can turn the

product or service it’s designed to produce.

The Lean metric is process cycle time

Lean…

• Focuses on maximizing process velocity

• Provides tools for analyzing process flow and delay times at each activity in a process

• Centers on the separation of “value-added” from “non-value-added” work with tools to

eliminate the root causes of non-value added activities and their costs

(6)

Six Sigma & Lean

Two Types of Waste:

Systems Waste:

Business may require you to perform

certain functions-for internal or external reasons. Task

is required by law or regulation.

Pure Waste:

Non-value added activities that can be

eliminated

T

ransportation

I

nventory

(7)

Six Sigma & Lean

M e a n

S hift

Before

After

Reduce

Variation

After

Before

Lean focuses on

 process efficiency

 identifying non value added steps and

reducing waste

 reducing bottlenecks

 Increase speed and cycle time

Quantity

Timeliness/Speed

Zero Bottlenecks

Reduced Non-Value Added Steps

Six Sigma focuses primarily on

 process effectiveness

 understanding and reducing variation

 reducing and eliminating defects.

 improving performance on Customer

CTQs (

Critical to Quality

)

Quality

Accuracy

Zero Defects

Reduced Variation

(8)

Six Sigma & Lean

What is Lean Six Sigma:

Two industry-proven methods to improve processes



Six Sigma:

reduce defects to close to zero on what

the customer values



and



Lean:

eliminate waste, simplify, and increase speed

--focus on doing what the customer values

(9)

What is DMAIC?

• DEFINE

- Way things are today

• MEASURE

- Gather information critical to the process

• ANALYZE

- Evaluate the information gathered

• IMPROVE

- Better way to do things

(10)

Improvement Process Road Map

• Identify Problem

• Complete Charter

• Develop SIPOC Map

• Map Business Process

• Map Value Stream

• Gather Voice of the

Customer & Voice of the

Business

• Develop CCR’s & CBR’s

• Finalize Project Focus

• Propose Critical X’s

• Prioritize Critical X’s

• Conduct Root Cause

Analysis on Critical X’s

• Validate Critical X’s

• Estimate the Impact of

Each X on Y

• Quantify the Opportunity

• Prioritize Root Causes

• Develop Potential Solutions

• Develop Evaluation Criteria &

Select Best Solutions

• Evaluate Solution for Risk

• Optimize Solution

• Develop ‘To-Be’ Process Map(s)

and High-Level Implementation

Plan

• Develop Pilot Plan & Pilot Solution

• Develop SOP’s, Training Plan

& Process Control System

• Implement Process

Changes and Controls

• Monitor & Stabilize Process

• Transition Project to Process

Owner

• Identify Project Replication

Opportunities

• Calculate Financial Benefits

• Pareto Charts

• Project Selection Tools

• Project Management

• Value Stream Map

• Various Financial Analysis

• Charter Form

• Stakeholder Analysis

• Communication Plan

• SIPOC Map

• Operational Definitions

• Data Collection Plan

• Statistical Sampling

• Measurement System Analysis

(MSA), Gage R&R

• Constraint Identification

• Setup Reduction

• Pareto Charts

• C&E Matrix

• C&E/Fishbone Diagrams

• Brainstorming

• Detailed ‘As-Is’ Process Maps

• Basic Statistical Tools

• Non Value-Added Analysis

• Confidence Intervals

• Hypothesis Testing

• Brainstorming

• Benchmarking

• Solution Selection Matrix

• Process Improvement

Techniques

• Process Balancing

• Process Flow Improvement

• Queuing Theory

• Control Charts

• Standard Operating

Procedures (SOP’s)

• Training Plan

• Communication Plan

• Implementation Plan

• Visual Process Control

• Process Control Plans

• Identify Key Input, Process and

Output Metrics

• Develop Operational Definitions

• Develop Data Collection Plan

• Validate Measurement System

• Collect Baseline Data

• Determine Process

Performance/Capability

• Validate Business Opportunity

Tools

Activities

Improve

Control

Measure

(11)

Can you list some Defects that

may be found in the Mail and

(12)

Six Sigma & Lean

WHAT MAIL SERVICES ITEMS COULD BE DEFECTS?

• Equipment inefficiencies

• Processes that require extra labor and time

• USPS Postage mistakes

• Address lists with inaccurate addresses

• Shipping at a higher level of service than needed

• Shipping to an inaccurate address

• Multiple-handling of mail or freight

(13)

(14)

Value Add Time

Analysis

(15)

Value Add Time Analysis

Begins With …

1. An understanding of where the selected work

process begins and ends

2. A good map of the process that includes:

– Process steps

– Transportation

– Storage

– Delay(s)

– Inspection

OUTPUT

INPUT

Your

Supplier(s)

CUSTOMER(S)

Your

(16)

Value Add Time Analysis Steps

1. Identify the boundaries of the selected

process

2. Develop a process map of the process

3. Determine the cycle time

4. Value add analysis

5. Improve the process

(17)

1. Identify Process Boundaries

Output (Results): Y

Measures

• Voice of the

Customer

• Voice of the

Business

Process: f(x)

Measures

• Voice of the

Customer

• Voice of the

Business

Input: f(x)

Measures

• Voice of the

Customer

• Voice of the

Business

Output

Characteristics:

• Critical to Quality

(CTQ)

• Critical to Delivery

(CTD)

• External

Customer:

• Process

Owner:

• Product/Service

delivered to the

customer

• Process Name

• Constant

– Common Sense

Factors

– Must be done

• Noise

– Uncontrollable

– Too costly to

control

• X Key Variables

– Controllable

factors

– Can be done

• CAM

• Acct Team

• Customer

(notification)

requirements

CUSTOMER(S)

OUTPUT(S)

PROCESS

INPUT(S)

SUPPLIER(S)

High Level

Process Step

High Level

Process Step

High Level

Process Step

High Level

Process Step

OUTPUT(S)

INPUT(S)

Voice of the Customer (VOC):

Customer requirements in terms of Quality measures,

Cost measures, and/or Delivery/Speed measures

Voice of the Business (VOB):

Business requirements in terms of Quality Measures,

Cost measures, and]/or Delivery/Speed measures

(18)

2. Develop the Process Map

The process map should

contain enough detail to

enable effective analysis:

• It should illustrate both the

work flow and the

organizational interaction

• It should use a common

language (symbology) which

is understood by everyone

• It should capture all multiple

paths, decisions, and rework

loops

• It should contain adequate

detail

Flow Chart Symbols

Decision

?

OUTPUT

END

TASK:” what you do”

(an activity or a step

in the process)

yes no

INPUT

START

A

(connector to the next step - typically on the next page)

1

(connector to another process)

(for portrait flow charts – ‘yes’ flows down; for landscape flow charts – ‘yes’ flows to the right)

(19)

Process Map Example

Bring job to Doc Ctr Phone call

from end user

Wait for pick-up

Is there a job ticket? A DC Associate picks up job DC Associate completes job ticket

Verify info on job ticket Job Ticket:

- walk-in

Is job ticket complete?

Call for more complete info

Timestamp job ticket "in"

A

Give job to print operator

Wait for operator to look at job ticket

Check due time

Print operator queues job Process capable to complete job on time? Schedule job

Job waits in queue

B

Call to negotiate new time

Check for paper stock

Log job into Equitrac Run job Take to QC Table Wait for QC Perform QC; fill out QC slip

Is QC OK? Is there time to re-run job?

C

Schedule job for delivery

Job waits to be delivered

Delivery Associate pciks up job from Doc Ctr and time stamps job 'out'

Completed job returned to end user Job delivered Call to negotiate new time

Y - 98%

Y - 95%

Y - 99%

Y - 100%

N - 2%

N - 5%

N - 1%

N - 0%

(20)

3. Determine the Cycle Time

1. Following ONE unit (e.g., a single

piece of mail or a package),

document the time (seconds or

minutes) the unit spends at each

step.

(21)

Bring job to Doc Ctr 2 min Phone call

from end user

Wait for pick-up 10 min Is there a job ticket? A DC Associate picks up job 2 min DC Associate completes job ticket

3 min

Verify info on job ticket 1 min Job Ticket: - walk-in Is job ticket complete?

Call for more complete info 3 min Timestamp job ticket "in" 1 min A

1 min

5 min

Check due time 1 min Print operator queues job 1 min Process capable to complete job on time? Schedule job 1 min

Job waits in queue 15 min B B Call to negotiate new time 3 min

Check for paper stock 1 min

Log job into Equitrac 1 min Run job 120 min Take to QC Table 1 min Wait for QC 60 min

Perform QC; fill out QC slip 10 min

C

Schedule job for delivery 1 min Job waits to be delivered 20 min Delivery Associate pciks up job from Doc Ctr and time stamps job 'out'

1 min Completed job returned to end user 2 min Job delivered Call to negotiate new time 3 min

Y - 98%

Y - 95%

Y - 99%

Y - 100%

N - 2%

N - 5%

N - 1%

N - 0%

(22)

4. Value Add Analysis

• The objective of Value Add analysis is to:

– Eliminate the hidden costs that do not add value

to the customer

– Reduce unnecessary process complexity, and

thus errors

– Reduce the process cycle time

(23)

Value Add vs. Non-Value Add

• The analysis of identifying steps in a

process for which the customer is willing to

pay, and those which the customer is

unwilling to pay.

• All processes are made up of three types

of activities:

– Customer Value Add (CVA)

– Business Value Add (BVA)

(24)

Definitions: CVA, BVA, NVA

Customer Value Add

(CVA)



Any step in a process that is

essential to deliver a service

to the customer



Must be performed to meet

customer needs



Adds form or feature to the

service



Enhances service quality,

enables on time or more

competitive delivery, or has a

positive impact on price

competition



Those tasks which the

customer would be willing to

pay for if he/she knew you

Business Value Add

(BVA)



Activities that allow greater

effectiveness or efficiency in

a process



Activities that are required

by the business but add no

real value from a customer

standpoint



Questions:



Does it reduce financial

risk?



Does it support financial

reporting requirements?



Would the process

break down if this task

were removed?



Is it required by law or

Non-Value Add (NVA)



Activities that are not value

add or Business Value Add



Activities which are not

required to meet or exceed

customer needs and are not

required by the business



Non-Value Add activities add

waste to the process



Non-Value Add (NVA) tasks

typically include:



Handling



Inspecting



Transporting



Moving



Counting



Delaying



Storing

(25)

Non-Value Add Time Examples

Examples of non-value add tasks include:

– Handling paperwork

– Counting, issuing, retrieving

– Waiting

– Proofreading

– Inspecting and checking

– Sorting work

– Logging information

– Checking calculations

– Reviewing and approving

– Moving and setting-up

– Monitoring work

– Any type of rework

T

ransportation

I

nventory

M

otion

W

aiting

O

verproduction

O

ver

processing

D

efects/Rework

(26)

Classify CVA, BVA, NVA Steps

Contribute to

Customer Needs?

Contribute to the

Business Owners?

Necessary to

Produce Output?

Activity/Task

No

Yes

No

Yes

No

For each activity,

step, or task in the

process, classify it

as:



Customer Value Add



Business Value Add

(27)

• PCE is a measure of the relative efficiency in a process - it

represents the percentage of value add time of a product

down the critical path.

It is calculated using:

• PCE is the performance indicator of how efficiently the

process is converting work-in-process into exits

Time

Cycle

Process

Time

Add

alue

Customer V

Efficiency

Cycle

Process



– PCE = Process Cycle Efficiency

– CVA = Customer Value Add (the amount of time value is actually

being added to a product – the time a customer is willing to pay

for)

– PCT = CVA + BVA + NVA

(28)

Process Cycle Efficiency (PCE)

World-Class Process Cycle Efficiency

Benchmarks

*

Creative/Cognitive

Processes

5%

25%

Transactional Processes

_10%

_50%

Batch Transfer Assembly

_15%

_35%

Continuous/One Piece

Flow Assembly

30%

80%

(29)

Value Add Analysis Example

from end user

W ait for pick-up 10 min Is there a job ticket? A DC Associate picks up job 2 min DC Associate completes job ticket

3 min

1 min

5 min

Log job into Equitrac 1 min Run job 120 min Take to QC Table 1 min W ait for QC 60 min

Perform QC; fill out QC slip

10 min

Is QC OK? Is there time to

re-run job?

C

Y - 98%

Y - 95%

Y - 99%

Y - 100%

N - 2%

N - 5%

N - 1%

N - 0%

Total (pre-improvement) Cycle Time =

135 min.

+

1 min.

+

121 min.

= 257

min.

(30)

5. Improve the Process

Customer Value Added

Non-Value Add

Business Value Add

Non-Essential (Waste)

2. Reduce

1. Eliminate

3. Improve

Essential

Cycle Time Reduction

(31)

Process Improvement Example

Walk job to Doc Ctr 2 min Phone call from end user Is there a job ticket? A DC Associate picks up job and

time stamps 2 min

DC Associate completes job ticket

3 min

A

Give job to print operator 1 min Print operator queues job 1 min Process capable to complete job on time?

Log job into Equitrac

1 min

Run job 120 min

Perform QC; fill out QC slip

10 min

Y - 98%

Y - 95%

Y - 99%

Y - 100%

N - 2%

N - 5%

N - 1%

N - 0%

Total (post-improvement) Cycle Time =

135 min.

+

1 min.

+

21 min.

= 157 min.

PCE (Process Cycle Efficiency) = 86.0%

(32)

6. Recalculate the Cycle Time

1. Calculate total (post-improvement)

process cycle time of the newly

improved process.

2. Calculate % improvement =

Post-improvement Cycle Time

Pre-improvement Cycle Time

(33)

(34)

(35)

Layout Improvement

1. Document the process

2. Measure the process

3. Analyze the process for improvement

4. Apply process flow improvement

techniques

(36)

1. Document the Process

A. SIPOC

(Supplier-Input-Process-Output-Customer)

B. Process Map

(37)

Spaghetti Diagram Example

NOTE: Each color is

a different path depending

on job type

6'-6' Workstation 6'-6' Workstation 6'-6' Lead

3 '-2 ' 3 '-2 ' 3 '-2 ' 3 '-2 ' 3 '-2 ' 3 '-1 '6 " 3 '-1 '6 " 3 '-1 ' 3'-2' 5'-3' Shrink Wrap 10'4"-3'10" Table 6'-3' 3 '-1 '6 " Drill 3'-3'6" Cutter 3'9"-2'10" 4'-2' 5'-2' 3'-3'

DC 40

F

o

ld

e

r

3'-2' 4 '-2 ' 4 '-2 ' 4 '-2 ' 4 '-2 ' 13"-13" pole

4

8 '-3

"

Hub

P a d d e r 3 '-1 '

58'-8"

1

2 '-4

"

8'-0"

9 '-0

"

2 '-0

"

3'-0"

4 '-0

"

2

0 '-0

"

1

3 '-6

"

Walk Through Space Folder

6 '-0

"

6'-0"

6 '-0

"

6 '-0

"

6'-0"

6 '-0

"

6'-0"

3 '-0 " 2'-0" 2'-6" 1 '-6 " 1 '-6 " 2'-0" 1 4 '-6 5 /8 "

4'-2'

5'-2'

P a d d e r 3 '-1 '

2

1 '-0

"

N E P S 3'-2' Admin D T 1 3 5 1 4 ' 6 "-3 '8 " DT 135 14' 6"-3'8" 1 0 '-2 '6 " Ship Pal Rat Traps Power Cables

(38)

2. Measure the Process

• Conduct a time study of the

process steps

(39)

Process Time Study

Observation Sheet

WORKCENTER TIME OBSERVATION SHEET

PROJECT NAME _WORKCENTER _{PRODUCT PROCESSED} DATE

PROCESS STEP 1 2 3 4 5 6 7 8 9 10

BEST

REPEATABLE COMMENTS

Process Step 1

<-- Clock Time

<-- Elapsed Time

Process Step 2

Process Step 3

Process Step 4

Process Step 5

(40)

Process Time Study Example

from end user

Wait for pick-up 10 min Is there a job ticket? DC Associate picks up job 2 min DC Associate completes job ticket

3 min

A

1 min

5 min

Check due time 1 min Print operator queues job 1 min Process capable to complete job on time? B Call to negotiate new time 3 min

Log job into Equitrac 1 min Run job 120 min Take to QC Table 1 min Wait for QC 60 min C

1 min Completed job returned to end user 2 min Job delivered

Y - 98%

Y - 95%

N - 2%

N - 5%

(41)

3. Analyze the Process

A. Identify the bottleneck

(Task Time Chart)

B. Identify Non Value Added tasks

(Value Add Time Analysis)

C. Assess worker flexibility

(Personnel Skills Assessment)

(42)

A. Bottleneck Example

Bottleneck:

The process

step that

inserts the

MOST delay

in the

process.

from end user

Wait for pick-up 10 min Is there a job ticket? DC Associate picks up job 2 min DC Associate completes job ticket

3 min

A

1 min

5 min

Check due time 1 min Print operator queues job 1 min Process capable to complete job on time? B Call to negotiate new time 3 min

Log job into Equitrac 1 min Run job 120 min Take to QC Table 1 min Wait for QC 60 min C

1 min Completed job returned to end user 2 min Job delivered

Y - 98%

Y - 95%

N - 2%

N - 5%

(43)

B. Non-Value Add Example

Total (pre-improvement) Cycle Time =

135 min

. +

1 min.

+

121 min.

= 257 min.

from end user

Wait for pick-up 10 min Is there a job ticket? A DC Associate picks up job 2 min DC Associate completes job ticket

3 min

1 min

5 min

Log job into Equitrac 1 min Run job 120 min Take to QC Table 1 min Wait for QC 60 min

C

Y - 98%

Y - 95%

Y - 99%

Y - 100%

N - 2%

N - 5%

N - 1%

N - 0%

(44)

C. Worker Flexibility Example

ROLE / TASK

SKILLS REQUIRED

ASSIGNED TO

PRIMARY

BACK-UP

SECONDARY

BACK-UP

TRAINED

OTHER

ASSOCIATES

COPY LEAD

· Oversees copy production

· Excellent communication skills

· Good problem-solving skills

· Excellent follow-through skills

· Good organization and planning skills

Mirta

Acct Coord

· Works with Account Coordinator to

resolve copy inquiries/issues

· Excellent follow-through skills

· Good problem-solving skills

Mirta

· Maintains copy supplies inventory

· Good inventory management skills

Mirta

· Orders copy supplies

· Good planning skills

Mirta

· Ensures completion of daily log

summaries for One Page Manager is

provided by 10:00am to Acct Coord

· Excellent follow-through skills

· Good at details

Mirta

Acct Coord

· Negotiates, as required, changes in

end user requested due times

· Good negotiation skills

Mirta

CAM

· Performs all Copy Associate functions

· (see Copy Associate)

Mirta

Dan, Doug, Laurie

COPY ASSOCIATE

· Copies job per instructions

· Key Op trained on respective

equipment

Dan, Doug, Laurie

Mirta

(45)

4 . Process Flow Improvement

Techniques

A. Remove Excessive Non-Value Add Time

B. Perform Layout improvement

– Co-location of Personnel

• Concurrent work

• Case teams

– Mobile equipment

– Digitization

C. Create focused work space

D. Perform task balancing

(46)

A. Non-Value Add Time Improvement

Walk job to Doc Ctr 2 min Phone call from end user Is there a job ticket? A DC Associate picks up job and

time stamps 2 min

DC Associate completes job ticket

3 min

A

Give job to print operator 1 min Print operator queues job 1 min Process capable to complete job on time?

Log job into Equitrac

1 min

Run job 120 min

Is QC OK? Is there time to

re-run job?

Y - 98%

Y - 95%

Y - 99%

Y - 100%

N - 2%

N - 5%

N - 1%

N - 0%

Goal is to limit non-value add tasks

which include:

– Handling paperwork

– Counting, issuing, retrieving

– Waiting

– Proofreading

– Inspecting and checking

– Sorting work

(47)

Traditional vs.

Cell Process Flow

Traditional Characteristics

Cell Characteristics

Resources are arranged in distinct functional

departments

Unneeded (non-value added) steps are removed

Departments can often be in different buildings,

locations or even states

Value-added steps are simplified

Employees are dedicated to a department and a

position/workstation

Resource layout follows the ‘whole’ process sequence,

usually in a U- or C-shaped path to minimize the distance

the operator travels from the end of one cycle to the

beginning of the next.

Employees have specialized knowledge There are co-located, cellular layouts

Departments are arranged by “space required” or space

availability over time with no particular flow

Employees are cross-trained (can do multiple jobs)

creating a flexible workforce

Batch processing One-piece flow processing (pull signals)

No visibility to the whole process, nor knowledge of a

broader process (very myopic)

Authorization barriers are removed

Poor metrics for total process performance Processing is paced to the customer demand rate (takt

rate)

If metrics exist, they are at the task level, leading to

(48)

B. Layout Improvement Example

Goal is to reduce handoffs and

have the service or information travel as little as possible

to minimize the customer wait time.

6'-6' Workstation 6'-6' Workstation 6'-6' Lead

3 '-2 ' 3 '-2 ' 3 '-2 ' 3 '-2 ' 3 '-2 ' 3 '-1 '6 " 3 '-1 '6 " 3 '-1 ' 3'-2' 5'-3' 3'-3' DC 40 F o ld e r 3'-2' 4 '-2 ' 4 '-2 ' 4 '-2 ' 4 '-2 ' 13"-13" pole 4 8 '-3 " Hub P a d d e r 3 '-1 ' 58'-8" 1 2 '-4 " 8'-0" 9 '-0 " 2 '-0 " 3'-0" 4 '-0 " 2 0 '-0 " Walk Through Space Folder 6 '-0 " 6'-0" 6'-0" 6 '-0 " 6 '-0 " 6'-0" 6 '-0 " 6'-0" 3 '-0 " 2'-0" 2'-6" 1 '-6 " 1 '-6 " 2'-0" 1 4 '-6 5 /8 " 4'-2' 5'-2' P a d d e r 3 '-1 ' 2 1 '-0 " N E P S 3'-2' Admin D T 1 3 5 1 4 ' 6 "-3 '8 " DT 135 14' 6"-3'8" 1 0 '-2 '6 " Rat Traps Power Cables 6'-6' Workstation 6'-6' Workstation 3'-2' 3'-2' 3'-2' 3'-2' 5'-3' S h ri n k W ra p 1 0 '4 "-3 '1 0 " T a b le 6 '-3 ' D ri ll 3 '-3 '6 " C u tt e r 3 '9 "-2 '1 0 " D C 2 0 4 5 Folder 4 8 '-3 " Padder 3'-1' 58'-8" 6'-0" 6 '-0 " 6 ' - 0 " 14'-6 5/8" Padder 3'-1' DT 135 14' 6"-3'8" 10'-2'6" DT 135 14' 6"-3'8" 3 '-2 ' A d m in NEPS NEPS 42'-0" 3 4 '-9 " 2'-6" 3 '-1 '6 " 3 '-1 '6 " 4'-2' Forms 4'-2' Forms

(49)

C. Create Focused Work Space

Orient Information, Terminals,

Materials, Equipment, and Supplies to make

use of

Principles of Motion Economy



Keep body (trunk) motions to a minimum.



Use gravity instead of muscle whenever possible.



Avoid zigzagging motions and quick direction changes.



Move with steady rhythms.



Keeps materials/supplies close and in front.



Arrange material and tools in order of use –

counterclockwise.



Work at the proper ergonomic height.

(50)

D. (Re)-balance Work Content

• Unbalanced process drives low productivity

• Give each operator/task the same pace of work!

Printing

20 min / set

5 min / set

Drill Press

GBC Bindery

15 min / set

Unbalanced process

Balanced process





(51)

5. Standardize Operations

Create standard operating procedures

– Use simple, visual tools to:

• prevent defects

• facilitate training needs

• Establish accountability and ownership

Work Instructions

S.O.P.

040 060 010 020 030 080 050 090 070 OP #2 OP #1

Standard Operations

Layout

Metrics & Dashboards

Closes & On-Time Completions

0 20 40 60 80 100 JanFebMarAp r MayJu n JulAugSepOc t Nov_Dec S h ip m e n ts ( 0 0 0 s ) 75 80 85 90 95 100 O T C ( % )

Closes Closes Goal OTC OTC Goal

PCT and PCE

(Appl, Proc, Appr, Close)

0 10 20 30 40 50 JanFebMarAp r MayJunJulAug_SepOctNovDec P C T ( D a y s ) 0.0% 5.0% 10.0% 15.0% 20.0% P C E ( % ) PCT PCT Goal PCE PCE Goal

Loans-In-Process

(Appl, Proc, Appr, Close)

0 5 10 15 20 25 30 JanFebMarAprMay Jun JulAugSepOctNovDec L IP ( M M s )

Appl Proc/App Close

Overhead Labor Productivity

(=Appss Processed / Payroll Hours)

0% 10% 20% 30% 40% 50% JanFebMarAp r MayJunJuAlug_SepOctNovDec O L P P ro d u c ti v it y

OLP Prod OLP Prod Goal

Customer Satisfaction

(Post-Close Survey Results)

80% 84% 88% 92% 96% 100% JanFebMar Ap r May JunJulAugSep Oc t NovDec C S ( % ) CS CS Goal

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