Key Facts Document - Successful Lean Six Sigma Deployments Supported By BSI

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Information about Key Facts Document - Successful Lean Six Sigma Deployments Supported By BSI

Published on September 8, 2015

Author: AndrewJohnSlaney

Source: slideshare.net

1. Copyright © 2013 BSI. All rights reserved. Successful Lean Six Sigma Deployments With BSI Training and Professional Services Ltd.

2. Copyright © 2013 BSI. All rights reserved. ‹#› BSI Company Background 07/09/2015 • Clients in 150 countries • 65 offices and 2800 employees worldwide • 3 regional hubs in UK, US and Hong Kong • A truly global brand and network – trusted and recognized for helping companies excel in the management of Performance, Risk and Sustainability • Leading Global Standards Creation Body: British, European, ISO, Public, Private • The UK National Standards Body: Source of British Standards • Specialist Focus: Standards Creation, Training, Business Improvement and Certification • Global Network: 70,000 clients in 150 countries worldwide including governments, global brands and SME’s • Experienced: World’s first National Standards Body established in 1901 and a founding member of ISO • Thought Leaders: Shaped the world’s most adopted standards, incl. ISO 9001, ISO 14001, OHSAS 18001 • Trusted: A Royal Charter Company, reinvesting profits back into our business to improve our clients’ experience

3. Copyright © 2013 BSI. All rights reserved. ‹#› Our people and end to end solutions make the difference for our clients • Global network of over 4,000 people supported by 10,000 industry experts • Over 100 years experience across almost every sector • Global specialization focused on training, business improvement, audit, certification • Industry specialized professionals constantly trained on new initiatives and processes • Tutors and consultants skilled in transferring knowledge to your employees • Our Credo “Making Excellence a Habit” keeps BSI client focused • Valued and appreciated by our clients - our BSI professionals score +9/10 in our Global Client Satisfaction Index 07/09/2015 Core CompetenciesIndustry Sector Expertise Rigorous Training Trusted Worldwide Standards, Training, Business Improvement, Testing and Certification

4. Copyright © 2013 BSI. All rights reserved. ‹#› BSI has a comprehensive portfolio of products and services to ensure all parts of your business develop excellence 07/09/2015 Lean Six Sigma Lean Six Sigma a key BUSINESS PERFORMANCE ENHANCER in BSI’s Portfolio

5. Copyright © 2013 BSI. All rights reserved. ‹#› The benefits of starting a Lean Six Sigma deployment programme The Benefits • Higher Client Satisfaction Scores • Lower Operational Costs • Lower Indirect Costs • Reduced Administration • Greater Responsiveness • Lower Material Waste and Rework • Better Use of Time and Resources • Lower Internal Process and Supply Chain Risk • Faster Time to Market • Enhanced Brand Reputation • Greater Engagement by Workforce • Enhanced Skillset Available to the Organisation The ‘Voice of BSI’s Customers’ • “Several projects we have taken on since being Lean Six Sigma trained have improved the business significantly. Processes have become more polished, which in turn has resulted in significant savings for both the organization and our customers” • “In receiving Lean Six Sigma certification from BSI, we now have something tangible to show our customers which gives them the added confidence in our ability to provide them with the best possible service” • “Lean Six Sigma is a shared learning scheme which enables me to pass on the new skills that I have learned through the programme onto the operational team who can then infiltrate it into the rest of the organization. This ensures that the maximum number of people can benefit from the training” • “Once the decision had been made to embark on a business improvement programme, we took advice from a number of companies who had experience of implementing the Lean Six Sigma approach. Having discussed our aims with BSI, we found them very honest in what we needed to do as a business and we have taken time to slowly embed a cultural change which is now reaping rewards.” 07/09/2015 A significant and quantifiable programme ROI can be achieved if the right approach is used

6. Copyright © 2013 BSI. All rights reserved. ‹#› Lean Six Sigma principles that deliver business excellence The Principles of Lean • Define Value from the customer’s perspective. • Identify the Value Stream needed to take a product (or service) from customer request to completed delivery. • Ensure product or ‘service activity’ Flows through the value stream without any delays. • Use Pull scheduling so that a product is made or a service is provided only when the customer wants it. • Strive continuously to eliminate all forms of Waste from the processes involved. The Principles of Six Sigma • Gather information to understand the Voice of the Customer. • Convert this understanding to targets and specifications for process performance. • Use data to analyse current state process variability and relate this to the customer driven targets and specifications that are now established. • Understand the factors that are the root causes of process variability and work to eliminate or reduce their impact for an improved state process. • Establish long term control procedures to maintain the gains. 07/09/2015 Higher QualityLower Costs Greater Responsiveness Customer Satisfaction Processes consistent in their ability to be efficient and effective in delivering to customer needs

7. Copyright © 2013 BSI. All rights reserved. ‹#› Lean Six Sigma tools and techniques that deliver business excellence The Tools of Lean Examples • Value Stream / Process Mapping • Visual Management • Kaizen Workshops / Plan Do Check Act • Workplace Organisation / Sort, Set in Order, Shine, Standardise & Sustain (5S) • Just in Time / Pull Systems / Kanban • Mistake Proofing • Single Minute Exchange of Die (SMED) • Total Production Maintenance (TPM) • Cell Layout Design • Takt Time / Line Balance The Tools of Six Sigma Examples • DMAIC Project Management / Organisational Role Structure • Measurement Systems Analysis (MSA) • Statistical Process Control (SPC) • Process Capability Analysis (Cp, CpK, Pp, PpK, Z, DPMO) • Visual and Graphical Techniques (Cause & Effect, Histograms, Contour Plots) • Statistical Techniques (Hypothesis Testing, Regression, Design of Experiments) • Control Planning • Quality Function Deployment (QFD) • Failure Modes and Effects Analysis (FMEA) 07/09/2015 Better Process FlowLess Waste Variation Reduction Targeted Processes A structured and consistent approach to addressing organisational challenges associated with quality, cost and delivery, supported by management and involving all employees

8. Copyright © 2013 BSI. All rights reserved. ‹#› Business excellence using Lean Six Sigma Typical Process Waste • Transport • Inventory • Motion • Waiting • Overproduction Centering Processes and Reducing Variation 07/09/2015 Lean Six Sigma • Overprocessing • Defects • Duplication • Poor Communication • Human Potential Target

9. Copyright © 2013 BSI. All rights reserved. ‹#› Levels of maturity and the evolving business process improvement journey 07/09/2015 Plan Check Act Implementing and obtaining benefits from the application of Lean Six Sigma techniques - a staged journey of business improvement Do

10. Copyright © 2013 BSI. All rights reserved. ‹#› Lean Six Sigma deployment key roles, practices and ideas Key Roles 07/09/2015 Key Practices and Ideas From the World of Six Sigma • Have stretch goals that target tangible results • Chose projects that align to business goals • Involve process owners and operational teams • Think before you act (use DMAIC) and put your faith in data • Manage the outcomes and manage variation • Celebrate success From the World of Lean • Start with the customer in mind • Keep it simple and make it visual • Go see for yourself and consider unlikely venues • ‘Count the pennies to realise the pounds’ (be incremental) • Consider the whole value stream. Consider all the need for tools. • Put people first Develop and maintain a capability in key roles and a culture of organisational excellence and best practice • Master Black Belt – programme and scorecard management, technical innovation, coaching and teaching across the organization, leadership of macro-projects (full or part time role). • Black Belt – project leadership, delivery of improvements and ROI, coaching and teaching of Green/Yellow Belts (typically full time role). • Green Belt – project leadership, delivery of improvements and ROI, coaching and teaching of Yellow Belts (part time role). • Yellow Belt – project team member or leader of small improvement activities, support of Black/Green Belt projects, use of tools in daily work (part time role). • Champion/Sponsor – senior level oversight, leadership and advocacy, programme management (part time role).

11. Copyright © 2013 BSI. All rights reserved. ‹#› Lean Six Sigma project management What Makes a Good Lean Six Sigma ‘Belt’? • An enthusiasm to learn new skills, e.g., project management, change leadership, data and process analysis • A strong desire to lead and work with colleagues to support/benefit the organization • A fact and data driven approach to work and decision making • A practical and pragmatic attitude and a desire to see the bigger picture • A person who has confidence in themselves and can inspire confidence in others • Someone who has and can manage their time in order to deliver projects • Someone who’s sponsor/manager has a high desire to see the chosen project delivered and who will maximally support the belt to do this • A good team worker • Someone who believes ‘problems are simply challenges to be overcome in disguise’ What Makes a Good ‘Belt’ Improvement Project? • An improvement project should be aligned to achieving the organisation’s business objectives • A project should have a clear link to achieving customer satisfaction and/or shareholder or business value • The results of a project should be measureable in terms of both the current and ideal (target) states • A project should be associated with a live and on-going process • The process concerned with a project should have poor performance or be creating defects • Significant improvement and ROI should be targeted in a project and clear goals should be agreed at the start • Project scope should be such that a sensible time-frame (typically 3 months) can be expected in terms of the project’s duration 07/09/2015

12. Copyright © 2013 BSI. All rights reserved. ‹#› What BSI offers and why we are different What We Offer • Bespoke Training in Lean Six Sigma and Business Improvement Techniques • A Globally Recognised Certification for Lean Six Sigma Professionals • Interim Resourcing (administrative, technical and managerial support for your CI programmes) • Guided Workshops and Facilitation (across a broad subject range, e.g. FMEA, QFD, Problem Solving) • Deployment Planning and Programme Management • Process Benchmarking and Gap (Opportunity) Analysis • A Partnership Approach between our specialist Master Black Belts and your Continuous Improvement and Management Teams Why We Are Different • Our range of services are designed to make your deployment faster, cheaper and more effective • We’ll understand your objectives, timescales, resources, experience and current level of attainment first • We have design, production and delivery expertise across both service and manufacturing sectors and can advise and support your whole value stream • Our programmes give an appropriate mix of educational (training) and /or advisory (consultancy) based support to get that ROI quicker and sustain the gains • Our consultants / tutors typically have upwards of 10 years of experience in implementing, delivering, supporting and training continuous improvement and Lean Six Sigma techniques • Our consultants / tutors come from a broad section of industry backgrounds and can give realistic, objective and sound advice and support irrespective of who you are and what you do • ‘One size does not fit all’ with us, we value your uniqueness as it’s what makes our work challenging and fun • It’s vital to us that we work in partnership in attaining your goals because if you achieve, then we achieve • Finally, judge for yourself, as we’d be happy to offer you a free no obligations exploratory meeting with one of our process experts 07/09/2015

13. Copyright © 2013 BSI. All rights reserved. ‹#› Lean Six Sigma deployment with BSI 07/09/2015  Select a function or area to conduct an initial pilot and evolve your deployment through the stages illustrated  For success and to maximize ROI the key results for each stage should be addressed in a timely manner  Post the pilot study roll out companywide or across targeted functions/regions/areas incorporating lessons learnt along the way. Pilot Phase Roll Out Phase(s)  BSI can help in all stages - it may be your first deployment, but it’s not ours. Our experience and expertise can smooth your journey letting you obtain your goals sooner and more effectively.

14. Copyright © 2013 BSI. All rights reserved. ‹#› BSI’s service provision covering all stages of deployment Corporate Awareness Management Overview Training & Workshops Lean Practice & Six Sigma Process Audits / Benchmarking Corporate Understanding Champion / Sponsor Training in Lean Six Sigma plus Implementation Advice Champion / Sponsor Training in Change Management 1-2-1 Management Coaching / Workshops in Lean Six Sigma Sponsor Roles and Skill Sets Management Workshops in Project Selection & Scoping Pilot Planning Lean Practice & Six Sigma Process Audits / Benchmarking Current State Process Baseline / Business Needs Analysis 1-2-1 Management Coaching in Lean Six Sigma Sponsor Skills Lean Six Sigma Pilot Planning Workshops Implementation Business Case Development and Support Belt and Project Selection & Screening Workshops Project Charter Development Support Provision of Implementation Templates / Programme Scorecard Design Programme or Project Management (Interim Master Black Belt, Black Belt, Green Belt) Provision of Administrative Support to Programme Development of Customised and Bespoke Training Materials Pilot Deployment Belt (Black, Green, Yellow) Training Delivery (or Co-Delivery) 1-2-1 Coaching and Support / ‘Belt’ Forums and Workshops Programme or Project Management (Interim Master Black Belt, Black Belt, Green Belt) Project Analysis, Progress Tracking, Review and Feedback Days Facilitated Management & Sponsor Review Days Provision of Administrative Support to Programme Pilot Review Progress Analysis & Review Countermeasure Support and Advice Next Steps Programme Planning On-going Deployment All the above, to Provide On going Maintenance and Support to Your Programme • BSI offers a range of services and support structures that will help get your organisation LEANER and your process outcomes more CONSISTENT TO TARGET • Results that your CUSTOMERS WILL NOTICE as will your ACCOUNTS DEPT. and those who read your BALANCE SHEET

15. Copyright © 2013 BSI. All rights reserved. ‹#› X + Guiding Coalition + Communicated Vision + Broad Based Action + Short Term Wins + Consolidate Gains = Rejection Sense of Urgency + X + Communicated Vision + Broad Based Action + Short Term Wins + Consolidate Gains = Chaos Sense of Urgency + Guiding Coalition + X + Broad Based Action + Short Term Wins + Consolidate Gains = Confusion Sense of Urgency + Guiding Coalition + Communicated Vision + X + Short Term Wins + Consolidate Gains = Frustration Sense of Urgency + Guiding Coalition + Communicated Vision + Broad Based Action + X + Consolidate Gains = Slowness Sense of Urgency + Guiding Coalition + Communicated Vision + Broad Based Action + Short Term Wins + X = De-Motivation Sense of Urgency + Guiding Coalition + Communicated Vision + Broad Based Action + Short Term Wins + Consolidate Gains = Change Lean Six Sigma is no ‘magic bullet’ – driving positive change is management’s role 07/09/2015 The requirements for successful organisational change - ‘Management Thinker’ John Kotter

16. Copyright © 2013 BSI. All rights reserved. ‹#› Examples BSI clients and BSI’s role as a deployment partner 07/09/2015 Boston Scientific (Medical Devices & Solutions) • Chosen as training provider for in company Lean Six Sigma pilot programme in Ireland • Following successful pilot deployment won tender for Lean Six Sigma roll out in the US • Conducted multiple waves of in company Green Belt training during three year deployment partnership • Provided coaching and direct support to project work • Developed and delivered ‘Train the Trainer’ course (to Green Belt level) • Co-developed Yellow Belt training for internal delivery • Licensed use of materials to company • Substantial savings generated from programme Coca Cola (Soft Drinks Manufacture and Distribution) • On-going provision of Lean Six Sigma Green Belt training in the UK (public and in company) • Three in company Green Belt training courses completed to date • Provision of telephone and e-mail coaching support and advice • On-going accruement of benefits from the programme Verizon (Wireless Broadband Network Provision) • Chosen as training provider for CFO sponsored programme of in company Green and Black Belt training • Success in initial focus of increasing conversion of sales to cash led to wider deployment • Provision of in company Yellow Belt training prior to move to internal delivery • Courses delivered in Hong Kong, Singapore, Paris, Amsterdam and the UK during 2 year deployment partnership • Provision of telephone and e-mail coaching support • Substantial savings generated from programme • High number of belts successfully certified Albea (Food and Pharmaceutical Packaging Supplier) • BSI chosen as provider for Lean Six Sigma training for major customer driven supplier quality programme • Black Belts trained through public programme, Green and Yellow Belts trained through in company work • All 180 staff received Yellow Belt training during 2 year deployment partnership • Provided coaching and direct support to project work • Successful roll out provided substantial gains as OTIF targets were met, renewal of major customer contracts were secured and further investment in the business obtained. Quality really did pay!

17. Copyright © 2013 BSI. All rights reserved. ‹#› BSI’s broad industrial sector experience 07/09/2015 Accounting Services Insurance Carriers Aluminum Production Investment Firms Automobile Manufacturing Legal Services Automotive Parts & Accessories Stores Lending Banks & Credit Unions Medical Equipment & Supplies Manufacturing Business Services Sector Membership Organizations Candy Manufacturing Metal Coating, Engraving & Heat Treating Cement & Concrete Product Manufacturing Metal Valve & Pipe Fitting Manufacturing Chemical Manufacturing Miscellaneous Manufacturing Computer Software Motor & Generator Manufacturing Construction Machinery Manufacturing Non-alcoholic Beverage Wholesalers Consulting Services Pharmaceutical Manufacturing Drug Wholesalers Photographic & Optical Equipment/Supplies Manufacturing Education & Training Services Plastic & Rubber Product Manufacturing Electrical Contractors Primary Metals Manufacturing Electronic Component Wholesalers Public Sector Electronic Inspection & Monitoring Instruments Manufacturing Scientific Research & Development Services Electronic Payment Systems Specialty Contractors Engineering Services Sporting Goods Manufacturing Eyewear Manufacturing Telecommunications Services Freight Forwarding Services Textile Manufacturing Fruit & Tree Nut Farming Turbine Manufacturing Industrial Chemical Manufacturing Wastewater Treatment Insurance Agencies & Brokerages Wholesale Sector Insurance Carriers

18. Copyright © 2013 BSI. All rights reserved. ‹#› Case Study: FMG Support an incident management and fleet services provider improves their business to the tune of 800K using Lean Six Sigma 07/09/2015 Customer needs • To increase efficiency • To stay ahead of the competition • To improve employee skills • To measure ROI for training Benefits • Improved customer service and efficiency • Cost savings and cash flow improvements totalling £800K on purchase and sales invoicing project • Improved business processes Background FMG Support is the UK’s largest independent incident prevention and fleet management services provider, with 25 years’ experience under its belt, dealing with over 250,000 incidents a year. The company identifies and corrects the causes of fleet incidents and inefficiencies to increase employee safety and commercial advantage. FMG Support’s long-standing customers include LeasePlan, GE Capital, DHL, Asda and a number of police constabularies. FMG also works alongside insurance partners like Zurich, QBE, Allianz and Chartis and holds the National Vehicle Recovery Manager contract for the Highways Agency, helping to ensure the safety and efficiency of the country’s strategic road network. In March 2008, the FMG Support Board secured a multi-million pound investment from private equity firm Aberdeen Asset Management to fund further market growth and innovation. “I was able to use my new Lean Six Sigma skills and pass this on to the operational team who filtered it through the rest of the organization. This maximized the benefits of my learning back into the organization back into FMG.” Derek Robinson, Business Process Improvement Manager Needs Many organizations are looking for ways to make the most of greatly reduced training budgets. Approximately 900 managers surveyed in a report from the Chartered Institute of Personnel Development agreed that even in uncertain financial times the need for a skilled workforce remains a priority. Seven out of ten managers also insist that learning and development is still high on the agenda for them. With budgets being stretched, the sensible training option would be to choose techniques that will generate a higher return on investment, thus making the need for training easier to justify. Lean Six Sigma training techniques were attractive to FMG Support due to its aim of increasing efficiency and staying one step ahead of its competitors. By collecting data which measures a return on investment, FMG Support is able to see in real terms how the training programme is benefiting the business. This is especially important in the service and public sector industries where there has recently been a lot of interest in Lean Six Sigma.

19. Copyright © 2013 BSI. All rights reserved. ‹#›07/09/2015 Contd. Organizations need to see that the training schemes they are implementing are having an impact in line with the overall business strategy and with Lean Six Sigma in particular, this can be easily measured. Derek Robinson, Business Process Improvement Manager at FMG, completed the five stage improvement process becoming a certified Lean Six Sigma Black Belt over the course of one year. He is now able to pass on his new skills to other members of the organization. “Lean Six Sigma is a shared learning scheme which enables me to pass on the new skills that I have learned through the programme onto the operational team who can then infiltrate it into the rest of the organization. This ensures that the maximum number of people can benefit from the training”. Benefits Since completing the Lean Six Sigma training with BSI, Robinson has witnessed many internal and customer related benefits, most notably the cost savings and cash flow improvements totalling £800,000 from a project involving purchase and sales invoicing. Robinson was able to improve the processes in place by bringing in web-based solutions which helped to speed up the process, improve customer service and increase overall efficiency. Robinson explains: “Several projects we have taken on since being Lean Six Sigma trained have improved the business significantly. Processes have become more polished, which in turn has resulted in significant savings for both the organization and our customers. In receiving Lean Six Sigma certification from BSI, we now have something tangible to show our customers which gives them the added confidence in our ability to provide them with best possible service”. The Lean Six Sigma training programme relates to many business aspects throughout a large number of industry sectors. Once a member of the organization becomes Lean Six Sigma Black Belt trained, they can help to instill the methodology throughout the rest of the organization. This highlights the real value that Lean Six Sigma training can provide; proving that even in the current economic downturn, gaining certification to a targeted training programme can see vast returns on investment and is by no means simply another training ‘fad’. BSI’s role Derek Robinson decided that the internationally recognised training programme from BSI Training was the most productive route to take by becoming Lean Six Sigma Black Belt trained. By gaining certification from a reputable company like BSI, Robinson also believed that adopting this training approach would give the company a competitive edge whilst enabling it to service its clients to a much higher standard.

20. Copyright © 2013 BSI. All rights reserved. ‹#›07/09/2015 Case Study: Nippon Gohsei partnered with BSI to embed a culture of continual improvement Background Nippon Goshei was founded on manufacturing technology for synthetic acetic acid resins and today has grown into a major chemical company. By expanding the range of high value-added products, Nippon contributes to realizing a better society, striving to be in the vanguard of new value and new solutions that are grounded in the needs of our customer and the demands of the times. Needs Nippon Gohsei wanted to enhance their productivity using business improvement tools and techniques. They identified that by developing their staff they could improve areas like internal structured problem solving. Being a Japanese company, Nippon Gohsei was familiar with business process improvement methodologies so when BSI first approached them about adopting the Lean Six Sigma approach, they were initially skeptical. They were understandably cautious to invest in training and were keen to learn more about the potential results. Solution Through a step-by-step process of training, leading and coaching, Nippon Gohsei worked with BSI to implement Lean Six Sigma, a systematic approach to process improvement that focuses on the customer. By adopting Lean Six Sigma they were able to strengthen and embed the culture of continual improvement that they wanted. Benefits The benefits gained were immediately apparent. With qualified members of staff sharing a common understanding of improvement tools, they were able to apply them to the business from everyday problem solving to critical projects like improving operational management systems. As a direct result of the learning, there has been a positive effect on the company’s bottom line. “Once the decision had been made to embark on a business improvement programme, we took advice from a number of companies who had experience of implementing the Lean Six Sigma approach. The decision was made very carefully, making sure that we didn’t dive into something that was going to result in excess cost, be an improvement ‘whim’ and not prove a corporate priority. Having discussed our aims with BSI, we found them very honest in what we needed to do as a business and we have taken time to slowly embed a cultural change which is now reaping rewards.” Andy Starkey, Nippon Gohsei UK

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