project management
samira121
M5LEANSST1.1922.pptx
Master Global Project Management
Torrens University Australia
BUSINESS PROCESS
MANAGEMENT & SYSTEM
PROJ6009
Subject Structure
Module 1 – Foundation of Business Process Management (BPM)
Module 2 – Drivers of BPM Projects and Opportunities
Module 3 – Phase of Business Process Management
Module 4 – Business Process Analytics and Improvement
Module 5 – Lean and Six Sigma in BPM
Module 6 – Enterprise Systems and Applications in BPM
Roughly Two sessions (weeks) per Module
Module 5:
Lean and Six Sigma in BPM
Be Lean, not Mean!
"Everything can be improved." ∼ Former Dow Jones President, Clarence W. Barron
The term of LEAN originates from the Toyota Production System, which the Japanese carmaker developed in the late 1940s. The company wanted to introduce low-cost improvements, so that it could compete with the likes of Ford in the U.S.
LEAN Production
The lean approach is based on finding efficiencies and removing wasteful steps and practices that don't add value to your product.
Its aim is to complete tasks more simply and effectively, and to ensure that your people, equipment and workspaces are responsive to your customers' needs.
Implement LEAN in Manufactory
Identify values (Current value & future value proposition)
Map the value stream (VSM)
Create and maintain the flow (From As-Is to To-be)
Establish Pull, not Push (Understand customer’s requirements, not push fixed products through)
Improve continuously (Kaizen…)
8 Wastes of LEAN
Defects
Over-production
Waiting
Non-Utilised talent
Transportation
Inventory
Motion
Extra-Processing
https://goleansixsigma.com/8-wastes/
LEAN Leadership
Improve Culture:
Striving for perfection
Failure is opportunity to improve
Self Development:
Lean leaders are role models
New leadership skills are necessary
Qualification:
Long-term development of employees
Continuous learning
Gemba Kaizen:
Shop floor management (5S)
Decision based on first-hand knowledge
Hoshin Kanri (Direction Management)
Customer focus
Aligned goals on all levels
LEAN Leadership
Six Sigma
Six sigma is a process quality technique that focuses on reducing variation in the process and preventing deficiencies in the product.
Six sigma is standing for standard deviation. It describes how much variation exists in a set of data, a group of items, or a process. It is a measurement of “goodness’ using a universal measurement scale. It measures how many times a customer’s requirements were not met (a defect) per million opportunities.
Six Sigma Sample
For example, if you are measuring how many defective coffee mugs were produced when one million were manufacture, to reach a level of Three Sigma you can only have 66,807 defects in a million opportunities. A level of Five Sigma only allows 233 defects. At a level of Six Sigma, the number of defects is 3.4 mugs per million.
DMAIC Methodology
DMAIC is a structured problem-solving methodology widely used in modern businesses.
Define – Measure – Analyze – Improve – Control
DMAIC encourages creative thinking within boundaries, such as keeping basic process, product or service.
Define: Key Steps
Review project charter
Validate problem statement and goals
Validate financial benefits
Create process map and scope
Create communication plan
Develop project plan (C, T, Q)
Complete the Define gate review
Define Gate Review Checklist
An updated project charter
Documentation on your customer knowledge
High-level process map and/or SIPOC diagram
Detailed project management plans
Define could be done as a mini Kaizen
event, where people come together for
half day and get all documents completed.
Measure: Key Steps
Create value stream map and confirm current process flow
Identify outputs, inputs and variables
Create data collection and analysis plan
Update value stream map with data
Perform process capability evaluation
Quick hit improvement
Prepare for Measure gate review
Value Stream Map (VSM)
Step 1
Step 3
Data:
Set up time: 10 min
Process time: 300 min
Units in queue: 23
Complexity: 15
Queue time: 65 min
Data:
Set up time: 8 min
Process time: 400 min
Units in queue: 21
Complexity: 22
Queue time: 122 min
Step 2
VSM is a process map with data to identify values & quantify waste
Detailed VSM
Data and metrics, variables and variance
Capability analysis (Specification Limits)
Updated project charter and plan
Quick win solutions
Measure Gate Review Checklist
Analyze: Key Steps
Conduct value (non-value) analysis
Calculate Process Cycle Efficiency (PCE) – What percentage that value has been added to the process
Analyze process flow
Explain potential causes
Collect more data to verify root cause (Sophisticated statistical tools are used, eg ANOVA, Regression)
Analyze gate review
Process analysis: mapping and audit
Root cause analysis
FMEA
Updated project charter and plan
Look for Kaizen opportunities
But avoid “paralysis by analysis”
Analyze Gate Review Checklist
Improve: Key steps
Generate potential solutions
Evaluate, select and optimise the best solution
Develop “To-Be” VSM
Develop and implement pilot solution
Execute full-scale implementation plan
Improve gate review
Solution development and alternatives
Pilot testing preparation
Data evidence and form sign off documents to enable solution
Full scale implementation
Be aware of scope creep
Improve Gate Review Checklist
Control: Key Steps
Develop supporting methods and documentation
Launch implementation
Monitor implementation
Develop process control and governance
Audit results
Finalise project
Validate performance and financial results
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Dombrowski U, Mielke T. Lean Leadership - fundamental principles and their application. in Procedia CIRP: 46th CIRP Conference on Manufacturing Systems, Setúbal, Portugal; 2013.
Harmon, P. (2014). Incremental Improvement with Lean and Six Sigma. In Business Process Change (pp. 293-325). Boston: Morgan Kaufmann.
Tenera, A., Pinto,L., (2014) A Lean Six Sigma (LSS) Project Management Improvement Model. Procedia - Social and Behavioral Sciences, 119, 912-920.
Liker, J. K., & Convis, G. L. (2012). The Toyota way to lean leadership. New York.
Reference
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