Enhancing Processes

Lean Sigma Consulting

Overview

Innovative Productivity, Inc. (IPI) is a provider of management, organizational, and business improvement services and products to improve the performance, quality, timeliness, effectiveness and efficiency of services provided by any organization.   These services were developed to help organizations keep pace with the ever-changing pace and challenges of today’s business environs.  IPI is known for customized support tailored to the unique needs of the organizations with which we work. IPI has worked with Federal, State and local governments, government prime contractors and sub-contractors, and commercial and industrial businesses.
We have significant experience in a variety of quality improvement and organizational development areas. Over the last 15 years we have worked with over 250 different organizations in support of their efforts. Consulting efforts have included:

• Guiding organizations in their implementation of Lean manufacturing
• Providing training and consultation on Six-Sigma and Theory of Constraints
• Helping clients develop and implement Quality Systems based on the ISO 9000 series of standards
• Conducting ISO 9000 assessments to identify strengths and opportunities
• Assisting organizational continual improvement efforts using the Malcolm Baldrige National Quality Award model
• Facilitating client strategic planning conferences
• Providing training in the areas of supervisor development, leadership development, quality tools, problem-solving, SPC, benchmarking, ISO 9000, and Malcolm Baldrige
• Developing leadership skills
• Understanding the voice of the customer, business, employee and process; and
• Developing and driving Quality Management strategies, including organizational structures, training and recognition

Knowledge

Our consultants and trainers have a combination of academic credentials, real-world leadership experience, and quality improvement consulting.  Among them are American Society for Quality (ASQ) certified  black belts, ASQ certified Quality Engineers, Professional Engineering certifications, and University Lean certifications.    Our consultants fully understand strategic and operational performance and improvement issues and have worked with all levels of management in the private and public sectors.  Additionally, they understand the importance of aligning the organization and the systems of the organization to meet the needs and requirements of the organization's leadership team.

The following matrix provides a summary of our Lean consultants, their credentials, and key clients with whom they have worked.

Consultant	Education, Certifications & Work Experience	Consulting Experience	Key Clients
Galvin Jones	BS Engr, MBA 30-years mfg experience QualPro Consultant Certified Lean Consultant	DOE and statistical consulting to over 150 clients	US Navy, SBC Comm., APL Logistics, Mohawk Industries, Panasonic, Lexel Imagining,  GE Appliances
Floyd McKeag	BS Mech Engr; MBA 25-years industrial experience Registered PE ASQ Blackbelt	10- years Lean Training	US Pipe, PPG, Harding Shymanski, Indiana Tube, Rexam Closures

Technical Approach

Innovative Productivity, Inc. ("IPI")provides Continuous Improvement/Lean Manufacturing Production System consulting support that will promote not only capable suppliers of goods and services but superior partners in today’s tough business environment.  Our transformation process is described in Figure 1:

Figure 1:  Transformation Process

Executive Planning Session

Few organizations have only one value stream; therefore, an 80/20 analysis is used to select the value stream(s) with greatest leverage for achieving Leadership’s goals and objectives.  Criteria such as inventory, floor space, capitalization, lead time, on time delivery, quality, cost, revenue contribution, and customer satisfaction levels are taken into account when prioritizing the schedule for Value Stream Mapping.  This short (two-four hour) fact-based discussion quickly builds consensus and alignment among the Leadership team regarding the appropriate focus of Lean Transformation efforts.  Then an initial implementation plan can be developed.

A typical agenda for this session may include:

• A brief review of Lean Principles & Value Stream Mapping (VSM)
• Identification of the organization’s major Value Streams
• Identification of target Value Streams for initial Lean penetration
• Develop a high level VSM for the targeted process
• Define the team for the initial VSM (cross functional sufficiency & need for ad-hoc personnel)
• Define current metrics, boundaries, goals and expectations for the targeted process
• Review the deliverables of the VSM
• Develop an initial follow-on plan for Rapid Improvement activities and additional VSM events
• Identify the roles and changes need for management need for a successful Lean implementation

Value Stream Analysis(VSA) Workshop

After the target Value Streams are determined, defined, and prioritized, the next step is Value Stream Analysis (VSA).  During these 3 day sessions a team is chartered which is comprised of Value Stream leadership, key stakeholders, and other Lean Deployment Team members (including key support personnel) such that the entire value stream can be defined.  The team typically is comprised of 5-11 members.  The team should possess the expertise to thoroughly and accurately define the process map.  The team is provided just-in- time training and will create and analyze the current state value stream map for sources of waste, document the baseline conditions, and identify improvement metrics.  Depending on the focus of the VSA, it may be appropriate to include other organizations such as suppliers, external customers and contracted support service providers as participants.  Participant will develop an ideal state that provides a vision of what the process will look like in 7-10 years.

The most important deliverables of the VSA session are the future state map and Rapid Improvement Plan (RIP), which aligns the value streams with the business strategy.    The RIP is the time-phased collection of Rapid Improvement Events, Projects, and Just-Do-Its necessary to develop the future state.  Concepts, including development of cells and pull systems that are to be created and other tools to be applied throughout the Value Stream to create the future state will be identified.  The plan is a month-by-month schedule of Rapid Improvement Events, Projects (30 days or greater to complete), and Just-Do-Its (less than 30 days to complete) to systematically transform the Value Stream.  It becomes a “living document” to be updated or revised as tools are applied, lessons learned, and subsequent VSA passes are performed.

Transformation of Value Streams

As previously discussed, improvement opportunities identified during Value Stream Analysis are segregated into one of three improvement process methodologies for implementation – RIEs, Projects, and Just-Do-Its.  Teams are formed and charters prepared to implement the RIP. 

Rapid Improvement Events (RIEs) are appropriate in situations where waste in the value stream is obvious and the presence of Lean principles such as flow and pull are conspicuously absent.  Rapid Improvement Events are action oriented, typically 3-5 days in length.  The RIE and team topics are drawn from Rapid Improvement Plans developed during Value Stream Analysis.  The teams are cross-functional and usually consist of 6-8 people each.  A structured improvement cycle is employed to prepare for, execute, and follow-up on the Rapid Improvement Event.  First pass topics typically include addressing workplace organization and layout, creating standard operations, implementing pull systems, and visual workplace.

Preparation for the RIE begins three weeks in advance utilizing a detailed checklist, developed with IPI’s assistance. The topic is selected, specific Lean/Six Sigma tools to be applied are identified, improvement metrics are defined, and improvement targets established.  Team leaders, co-leaders, and team members are identified and calendars are cleared.

Data collection begins two weeks in advance and used to drive change throughout the event.  One week before the event, employees that will potentially be affected are notified of the activity, participants are trained, logistical support is arranged, and data collection is completed.  Communications to the workforce regarding the event is initiated.

Regardless of the topic, the format of an RIE is typically the same.  On day 1, current conditions are documented and waste/opportunities are identified.  Day 2 consists of making big changes happen; it is often a very long day.  Day 3 is debugging and additional improvement.  Day 4 is documenting/standardizing the improved process.  A formal out-brief is provided to management on Day 5.  The out-brief addresses before and after conditions, improvements realized and projected, and highlights the actions that must be completed to achieve the projected improvements.  The objective of the Event week is to have a significantly leaner process in place and functioning before the close of the Event so that the organization can begin generating a return on its investment the following day.  Fundamentally, this means that less human effort will be needed for a given level of output.  Thus, people must be redeployed from the area.  It is IPI recommendation that people be reassigned not discharged in order to maintain program buy-in from the workforce.

Daily debriefs are held with Leadership at the end of days one through three.  Changes to key improvement metrics are quantified daily. Additional de-bugging is often required, metrics must be followed up on, and closure brought to remaining identified action items.

Typical results of the RIE have shown improvements netting a 3:1 annual return on investment.  Return depends on the current state of the process, team and management commitment and resource applied.  Initially, RIEs are performed on a single value stream at one time, but as Activities mature and develop more experience, RIEs can be performed on several value streams at a time.

Projects:  In situations where the root cause of a problem is not readily apparent, or the complexity of the problem exceeds the capability of a Rapid Improvement Team to resolve, a Project is the appropriate improvement process.  This type of opportunity is most often related to equipment capacity, capability, right sizing, or a quality issue.    Projects are normally assigned to area leadership in the organization for execution, with IPI technical assistance.  The Value Stream Champion is still responsible for the project and will supply necessary resources to be successful. 

Sustainment

Sustainment of gains is often the most difficult portion of the transformation process.  Change is immediate, but transformation takes time and is emotional.   The organization must plan for the transformation and develop metrics to show that the transformation is effective and being sustained.   Management must review progress and support the change with their words and presence.   Action plans must be followed.  This is a time of reflection and learning on what went well and what could be improved to enhance the organization’s transformation process.  Many times outside aid in terms of consulting and coaching is necessary; the management team is also experience the transformation.