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1 Phil Seong Moon / PMP webmaster@ccpm.co.kr

2 "Convergence Lean Six Sigma Six Sigma, "

3 - -,, , -

5 Needs / (Synergy) - / - /

6 Complexity ERP Lean/TPS Lean/TPS CMMI CMMI Project Managem ment SCM CRM ABC/ABM ABC/ABM TS TS TOC

7 : Allen Yurko, CEO, invensys plc Speed of Change

8 Complexity Problem Complexity Number of Devices/Users and Processes/Applications Complexity increases exponentially!

9 ASQ SSBOK ASQ Six Sigma BB Body of Knowledge Enterprise-Wide Deployment Business Process Management Project management Six Sigma Improvement Methodology and Tools - Define Six Sigma Improvement Methodology and Tools - Measure Six Sigma Improvement Methodology and Tools - Analyze Six Sigma Improvement Methodology and Tools - Improve Six Sigma Improvement Methodology and Tools - Control Lean Enterprise Design for Six Sigma (DFSS)

10 ASQ SSBOK ASQ Six Sigma BB Body of Knowledge III. Project Management A. Project charter and plan 1. Charter/plan elements Compare, select, and explain elements of a project's charter and plan. (analysis) 2. Planning tools 3. Project documentation 4. Charter negotiation B. Team leadership 1. Initiating teams 2. Selecting team members 3. Team stages C. Team dynamics and performance 1. Team-building techniques 2.Team facilitation techniques 3.Team performance evaluation 4. Team tools

11 ASQ SSBOK ASQ Six Sigma BB Body of Knowledge D. Change agent 1. Managing change 2. Organizational roadblocks 3. Negotiation and conflict resolution techniques 4. Motivation techniques 5. Communication 6. Management and Planning Tools VIII. Six Sigma Improvement Methodology and Tools - Control C. Lean tools for control Apply appropriate lean tools (e.g., 5S, visual factory, kaizen, kanban, poka-yoke, total productive maintenance, standard work) as they relate to the control phase of DMAIC (application) [NOTE: The use of lean tools in other areas of DMAIC is covered in section IX. C.]

12 ASQ SSBOK ASQ Six Sigma BB Body of Knowledge IX. Lean Enterprise A. Lean concepts 1. Theory of constraints Describe the theory of constraints 2. Lean thinking Describe concepts such as value, value chain, flow, pull, perfection, etc. 3. Continuous flow manufacturing (CFM) 4. Non-value-added activities 5. Cycle-time reduction Describe how cycle-time reduction can be used to identify defects and NVA activities using kaizen-type methods to reduce waste of space, inventory, labor, and distance. B. Lean tools Define, select, and apply tools such as visual factory, kanban, poka-yoke, standard work, SMED, etc., in areas outside of DMAIC-Control. [NOTE: The use of lean tools in DMAIC-Control is covered in section VIII. C.] C. Total productive maintenance (TPM) Understand the concept of TPM.

13 Project Definition Operations and projects differ primarily in that operations are ongoing and repetitive while projects are temporary and unique. A project can thus be defined in terms of its distinctive characteristics - a project is a temporary endeavor undertaken to create a unique product or service. Temporary means that every project has a definite beginning and a definite end. Unique means that the product or service is different in some distinguishing way from all other products or services. From PMBOK, PMI

15 Generation I Six Sigma Generation II Six Sigma Generation III Six Sigma Generation IV Six Sigma Process Optimization Cost Reduction, Business Strategy Value Creation, Maximizing Power DMAIC DFSS New Methodology Y=f(x1, x2, x3, ) Quality/Statistical Analysis Change Acceleration Management System

16 Customer CTQs: Quality, Cost & Timely delivery Reduce Project Cost Reduce Maintenance Cost Increase Productivity Reduce Time To Market Reduce Life cycle Cost Strengthen Partnership Increase Reliability Reduce Response Time Increase Predictability

17 Lean Thinking Lean?

18 Lean Tools Speed Focus Focus Tools: Value Stream Mapping (VSM) Kaizen 5S Pull System / Kanban / JIT Jidoka SMED What else? X-Training

19 Job Summary Creation - After Lean START: ASSIGN J.ob Summary - Co-Located Team - Standard Processes One JS Owner INCORPORATE COMMENTS 12.5 DEVELOP BUBBLE CHART 8.1 CONFIRM W.B.S. WITH TEAM 2 PHASE CU S PER BUBBLE CHART 3 BUILD CU ASSYS 3 DEVELOP ALL PHASES F Phase PRIORITY 90 2 TECH REVIEW CONTRACT OR IN- HOUSE 30 STATUS ALL CU PH TO PRL.2 APS / ZM REVIEW 12.5 APPROVE SUMM & ALL CU PH.2 END PROCESS START: -LF TGI - PACKAGING PREP S/C PKG SHIP 3 CHECK 3 XFER 1 LLTM TO END USE 1 START SCHEDULING PROCESS UPDATE METRICS & HISTORY FILE Product Line History Cross-Functional Core Team START REMAINING JMLS 10 Self-Directed Reviews FILE STD. PACKAGE MATL SPECALIST COMPL JML LLTM CU PHASE MATL SPECIALIST ISSUE LLTM JML MATL PROCESS

20 Results of the Job Summary Lean Lean Current State Future State Potential Improvement Value Added Time (Days) % Non-Value Added Required % Wait Time (NVA) % Total Lead Time = % Travel Distance (Feet) 30,744 2,464 to 13, to 92% Process Steps % Hand-Offs % Primary Action: Co-located, Cross-functional Team, FIFO s replaced w/focused individual

21 Repair "Simplified" Value Stream Map - Current Lean - VSM Supplier (Customer) Value Stream Map - Existing Takt Time = 1 Week Customer 50 Breakers / Yr Rec / Inspect Time = 2 hrs Ship to Shop Time = 1 hr Waiting for Shop RIDL This loop happens up to 9 times per Breaker Time = 1hr Shop Inspect Waiting for Tech. Code Time = 2 hr Order Parts Time = 8 hrs Wait Repair Time = 34.5 hrs Wait Appendix A Time = 2 hrs Wait Wait Wait Reliability Time = 2 days Wait Wait Appendix B Time = 16 hrs Wait Wait Waiting for Paperwork Waiting for Parts 139 Inspect Time = 1 hr Wait Pack / Ship Time = 1 hr Wait Packaging Time = 2 hrs RFI Inventory Up to 30 Days 10 to 100 days 2 Days 3 Days 2 to 15 Days 3 Days 2 Days 2 Days 2 Hr 8 Hrs 34.5 Hrs 2 Hrs 2 Days 16 Hrs 1 Hr 1 Hr 2 Hr Repair Lead Time= 155days Value Added Time=84.5 hrs

22 Current-state Value Stream Lean - VSM

23 Future-state Value Stream Lean - VSM

24 Lean Six Sigma?

25 ( EHS ) H M L 11 5 LL Ref: Michael George: Lean Six Sigma L 15 M H 2 HH (Capex & )

26 TOC? ASQ SSBOK TOC? Theory of Constraints

31 (Chain)

32 (Process) (System) - -, - Goal (Interact) Interact)?

33 TOC Tool

34 TOC 5 step 5 Identify (, Drum) Decide (, Buffer) Subordinate (, Rope) Elevate ( ) Repeat & Control

35 The Goal

36 TOC - DBR? RM Rope Buffer Drum A B C D E 11 Parts per Day 9 Parts per Day 5 Parts per Day 8 Parts per Day 15 Parts per Day

37 TOC - TP? What To Change? How To Cause The Change? What to Change To?

38 TOC - TP?

39 Evaporating Cloud (EC) TOC - TP?

40 TOC - TP? : 15. ( 2 ) A Be Happy B Get adequate Sleep C Do what I Enjoy D Go to bed by 11:00 (on school nights) D Don t go to bed by 11:00

41 TOC - TP?? A-B A-B B-D 7 B-D 7. A-C. A-C. C-D. C-D 11:00. The weakest assumption seems to be here Injection: Manage time better

42 TOC - TP? ) ( ERP.

43 TOC - TP?? ( ) CRT, FRT, TT, PT / TRIZ

44 TOC - CCPM? 6. PROJECT TIME MANAGEMENT 6.4 SCHEDULE DEVELOPMENT Tools and Techniques for Schedule Development Resource leveling heuristics Line 19: Critical chain is a technique that modifies the project schedule to account for limited resources. * PMBOK: Project Management Body of Knowledge by PMI (PMI: Project Management Institute, USA)

45 TOC - CCPM? Project Management *Critical chain impacts shaded blocks. 1 Integration 2 Scope 3 Time 4 Cost 5 Quality 6 Human Resources 7 Communications 8 Risk 9 Procurement Communications Management:

46 : TOC CCPM? WBS " " OBS " " WBS O B S MATRIX " " ( ) Bar chart Display of Network Data CPM (Activities)

47 PMBOK vs. Six Sigma Tool TOC CCPM?

48 PMBOK vs. Six Sigma Tool TOC CCPM?

49 TOC - CCPM? (Safety) Student Syndrome. Parkinson s Law? Bad Multitasking Fire-fighting

50 Student Syndrome. TOC - CCPM?

51 TOC - CCPM?

52 TOC - CCPM? Multi Multi-Tasking? Multi-tasking tasking Task A Task B Task C 3 days 3 days 3 days Should happen: Task A Task B Task C 3 days 3 days 3 days Could happen: A B C A B C 6 days Does happen: A B C A B C 7 days

53 TOC - CCPM? How long will it take? Task A : 5 Task B : 5 Task A 5 Days Task C : 5 Task B 5 Days Task D 10 Days Task D : 10 How long is the project? Task C 5 Days

54 Delays are passed on and Gains are NOT TOC - CCPM? Task A 3? Task A 5 3 Days X Task C 8? Task A, B, C 2? Task B 5 Days Task D 10 Days Task C Task D 3? 5 X8 Days Protecting Individual Tasks Provides Little Protection!

55 Project Common Cause & Special Cause TOC - CCPM? - Common Cause? - Special Cause?

56 TOC - CCPM? Common Cause Variation 50% 90% t Probability Time

57 CCPM

58 CCPM User Report

59 TOC - TA? Throughput Account (TA) T I OE (NP) = T - OE (ROI) = / = / * /

60 TOC TOC - TA? (T) (I) (OE) (Throughtput): T = ( ) - ( + ) (Inventory) :, (,, ) (Operating Expense): = +

61 TA Question: / Speed?

62 TRIZ TRIZ?

63 TRIZ TRIZ

64 LEAN/TOC Six Sigma Convergence High Level LEAN / TOC Define Measure Analyze Improve Control Low Level LEAN / TOC : - Value based Project - - Speed

65 LEAN/TOC Six Sigma Lean and Six Sigma Convergence # of Parts (Steps) OVERALL YIELD % Distribution Shifted ± 1.5σ Avg ± 3σ Yield ± 4σ at each ± 5σ Step ± 6σ % 99.4% 99.9% 99.99% Lean Six Sigma

66 LEAN/TOC Six Sigma Convergence

67 LEAN/TOC Six Sigma Convergence Integration : ASQ Six Sigma BB Body of Knowledge GE Capital DFSS : PM + Design & Engineering Technique + Six Sigma Lean Six Sigma by George Group: PM, Lean+TOC CMMI & Six Sigma : GM, Ford, Raytheon, Honeywell, AveryDennison

68 LEAN/TOC Six Sigma 1. Identify the Constraint 2. Exploit the Constraint Convergence 3. Subordinate everything to the Constraint 4. Elevate the Constraint 5. Repeat for the new Constraint

69 LEAN/TOC Six Sigma Process Improvements Roadmap: CMMI & 6 Sigma Measure Improvements and Rebaseline (CMMI 5) Convergence Deploy Improvements (CMMI 5) 6 Sigma Sigma Pilot Improvements (CMMI 5) Select And Prioritize Improvements (CMMI 5) Causal Analysis and Resolution (CMMI 5) Establish Process Capability Baseline (CMM 4) Set Objective Performance and Quality Goals (CMM 4)

70 CASE STUDY Lean/TOC Six Sigma Convergence

71 A Case Lean/TOC Six Sigma.,. 200 TOC/Lean,. - 17% 25% - 23% - 47% - 80% - 50% 90% - 50% 300%

72 A Case : - TOC,, Lean(TPS) - - / - -?

73 A Case 5S (Lean): ( ) - Spare part Lean Thinking (Six Sigma) (TOC/Lean) / (TOC/Lean)

74 Case Study : Non-manufacturing Processes Bank of America: ROI in a Sales & Marketing Environment focusing on revenue enhancement rather than expense savings and having a systematic means of capturing financial impact HSBC: Improve trading capability in retail brokerage, successful merging of three brokerage trading platforms which enabled them to reduce their costs per transactions DOE for Non-Manufacturing Processes: - Improve response rate on a direct-mail post card - Attract people to their new Internet Site - RS design with three factors(commercial length, repetition, etc.) - Two level factorial design a better telephone bill with color, font, etc. - Reduce the receivables from 200 to only 44 days, studying 4 factor Ad Billing - Factors in Pilot Training and Transfer - DOE in Marketing, 7 factors with ad medium, packaging design, size of candy bar, etc. - DOE to reduce service order processing time and response time to customers

75 Hidden Methodology for CI & Value Creating Organization Strategy Goal Breakthrough Management Tools Organization Asset Standard Process Common Process Asset

76 Organizational Excellence Back to the Basic GOOD LEADERSHIP GOOD STRATEGY GOOD PROCESSES supported by good People, Resources and Partners GOOD RESULTS

77 Organizational Excellence Back to the Basic A customer-driven strategy A people-orientated strategy About leadership and management involvement A result-orientated strategy

ecorp-프로젝트제안서작성실무(양식3)

ecorp-프로젝트제안서작성실무(양식3) (BSC: Balanced ScoreCard) ( ) (Value Chain) (Firm Infrastructure) (Support Activities) (Human Resource Management) (Technology Development) (Primary Activities) (Procurement) (Inbound (Outbound (Marketing