Introduction to CI
Goodrich
Continuous Improvement
This presentation is one of a standard training series produced by the Goodrich Continuous Improvement
organization. The series has been prepared for use by Goodrich organizations in the training and continuing
education of their personnel. Any use outside of the Goodrich Corporation is expressly prohibited without the
permission of the Goodrich Continuous Improvement organization.
LP - Intro to CI - Rev 1.ppt
1
Introduction to CI - Agenda
 History of Continuous Improvement
 What is Lean?
 What is Six Sigma?
 Combining Lean and Six Sigma
 Goodrich Approach to Continuous Improvement
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2
History of Continuous Improvement
“Craft” production prevails until the late 1700’s
 Skilled Worker – Starts and finishes order
 Dedicated special tools/All manual operations
 Parts custom fit
 High Cost – High Variety
Late 1700’s – Interchangeability emerges
 Standard gauging
 Division of labor
1800’s – Technology Driven Improvement
 Engineering drawings
 Modern machine tools
Late 1800’s/Early 1900’s – “Scientific Approach”
 Time Study
 Standard Work
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3
History of Continuous Improvement
After World War II and through the
1970’s, Taiichi Ohno developed
and refined the Toyota Production
Womack and his colleagues
System, the foundationJim
for Lean
manufacturing
at MIT bring attention to the
After World War II and through the
Henry Ford in 1915 introduces
1970’s, Taiichi Ohno developed
mass production
itsToyota
purest
Toyota
Production
System
and refined in
the
Production
Jim Womack
and his colleagues
form
with
a
moving
assembly
line
at
MIT
bring
attention
to the
through
books, The
Henry Ford in 1915 introduces System, the foundation
fortheir
Lean
Toyota Production System
mass production in producing
its purest
Machine that through
Changed
the World
Model T’s.
their books,
The
manufacturing
form with a moving assembly line
producing Model T’s.
1900 A.D.
Machine that Changed the World
and Lean Thinking
and Lean Thinking
2000 A.D.
W. Edwards Deming,
a student of a student of
W. Edwards
Deming,
Shewhart’s, lectured Japanese
industrial companies
on
Shewhart’s,
lectured
Japanese
statistical management methods
in 1950,
after
being
frustrated
in on on his
industrial
companies
Mikel
Harry
– Based
Walter A. Shewhart,
an
engineer
at
similar attempts
in the U.S.
experience
at GM and
Motorola, he
stati stical
management
methods
Bell Telephone
Laboratories,
along
with
others,
developed
the
Mikel
Harry – Based
on
his Six
developed
statistical
tools
to
being
frustrated
in
Walter A. Shewhart,
an engineerin
at 1950, after
experience at GM and Motorola, he
Bell Telephone Laboratories,
Sigma concepts,
which
have been
determine
corrective
actions
along
with others, developed the Six
developed statistical
tools to when
similar
attempts
in
the
U.S.
Sigma concepts,
which have been
determine when
corrective
actions
and expanded
by
should
be
applieddeveloped
to processes,
should be applied to processes,
developed and expanded by
including the
SPC control chart
in
companies
as GE,Signal,
Allied Signal,
suchinas
GE, such
Allied
including
the
SPCcompanies
control chart
1924
Lockheed Martin, and Boeing.
Lockheed Martin, and Boeing.
1924
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Class Discussion – Lean/Six Sigma
Numerous companies today are applying Lean
and/or Six Sigma. You may have had some
exposure to these concepts. Let’s list any
words/ideas you associate with Lean and Six
Sigma …
Lean Six Sigma
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5
What is Lean?
Based on the principles of the Toyota Production System,
Lean, at its core, is about the systematic and continuous
identification and elimination of waste
Key Principles of Lean …
• Define Value
and Identify the
Value Stream
• Eliminate
Unnecessary Steps
in the Value Stream
Normal
VA
vs
• Make Value Flow
Abnormal
NVA
Kaizen
• In Pursuit of
Perfection
• As Pulled by
the Customer
You can’t see all the waste until
you strip away waste
Don’t Automate Waste
Reference: Executive Summary of Lean Thinking by James P. Womack and Daniel T. Jones
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What is Lean?
Lean involves multiple systems and methods:
 Effective workplace organization and visual controls
 Improved machine layouts and multi-skilled workers
 Setup reduction
 One piece (or small lot) production
 Standard work to enable line balancing
 Kanban systems for Just-In-Time production
 Small group improvement activities (Lean Events)
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What is Lean?
Speed is a focus of Lean …
“All we are doing is looking at the time line from
the moment the customer gives us an order to the
point when we collect the cash. And we are
reducing that time line by removing the nonvalue-added wastes.”
- Taiichi Ohno
Order
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Cash
Cash
8
Lean Example in the Factory
Before - Traditional Batch
After - Lean
Machines
Grouped
By
Function
Isolated
Workers –
Poor
Teamwork
Large
Batches
Cluttered,
Unsuitable
Work Area
One Piece Flow
Reduced Leadtime Cell
Team Working
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Lean Example in the Office
Lean Event – Payment Request Process (Accounts
Payable)
 Reduced process steps by 30%
 Implemented 10+ mistake-proofing ideas
 Applied visual controls
 To work area
 To user instructions for invoice submittals
 Improved productivity by 19%
 Drove quality at the source
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What is Six Sigma (6σ)?
 A structured approach for improving performance
 Emphasizes importance of customer critical processes
 Drives for perfection in those processes by reducing
variation and eliminating defects
 Uses objective, fact-based analysis techniques
A systematic
approach ...
...to center the
process and ...
... reduce
variation!
failure!
LSL
USL
Tolerance
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LSL
USL
Tolerance
LSL
USL
Tolerance
11
What is Six Sigma (6σ)?
Sigma (σ) is a statistical term that measures the
variation in a given process and corresponds to
parts per million defective (ppm)
2σ
308,537
ppm
3σ
66,807 ppm
4σ
6,210 ppm
5σ
233 ppm
6σ
3.4 ppm
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Why Six Sigma?
Why 99% is not good enough …
3.8 Sigma (99% Good)
6 Sigma (99.99966% Good)
50 newborn babies dropped
at birth by doctors each day
6 newborn babies dropped
in a year
Toxic drinking water for 15
minutes each day
Unsafe water for one
minute every seven months
5,000 incorrect surgical
operations per week
1.7 incorrect surgical
operations per week
204,000 wrong drug
prescriptions each year
68 wrong prescriptions
each year
Two short or long landings
at major U.S. airports each
day
Two short or long landings
at major U.S. airports in 10
years
99% just won’t cut it in today’s world! Our customers demand better!
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Six Sigma – DMAIC
DEFINE
MEASURE
ANALYZE
IMPROVE
CONTROL
Institutionalize
Improvement,
Ongoing
Control
Charter Team,
Map Process &
Specify CTQ’s
Measure
Process
Performance
Identify &
Quantify Root
Causes
Select, Design
& Implement
Solution
• Customer
Critical To
Quality (CTQ)
Factors
Derived and
Documented
• CTQs
Measured
• Identify,
Quantify and
Verify Root
Causes
• Identify and
Optimize
Solution(s)
• Process
Capability
• Process
Stability
• Baseline
Performance
Calculated
• Benefits
Estimated
• Cost/Benefit
Analysis
• Ongoing
Measurement
& Monitoring
Plan
Implemented
• Process
Standardized
• Benefits
Validated
 Proven problem solving/project management methodology
 Mathematical tools for problem solving
 Advanced statistical techniques
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Six Sigma – Example
Global Express Variable Frequency Generator – Low Saturation Volts (Vsat)
Define
• Problem Definition: Vsat production acceptance test failures threatening
customer deliveries and production schedules at customer site.
Process Capability
Analysis
for for
Vsat,
Process Capability
Analysis
Vsattaking
taking intointo
account expected
process
shifts wwith
ith LCL=144.14
account expected
process
variation,
LSL =
144.14
LSL
USL
Process Data
USL
Measure
148.850
Target
LSL
• Process Capability Analysis indicated a process
that could become more capable.
Overall
145.272
Sample N
197
StDev (Within)
0.500299
StDev (Overall)
0.660071
Potential (Within) Capability
Cp
1.57
CPU
CPL
2.38
0.75
Cpk
0.75
Cpm
*
Overall Capability
Analyze
Within
*
144.140
Mean
143
144
145
Observed Performance
146
147
Exp. "Within" Performance
148
1.19
PPM < LSL
20304.57
PPM < LSL
11820.53
PPM < LSL
PPU
1.81
PPM > USL
0.00
PPM > USL
0.00
PPM > USL
PPL
0.57
PPM Total
Ppk
0.57
20304.57
PPM Total
11820.53
149
Exp. "Overall" Performance
Pp
PPM Total
43157.22
0.03
43157.25
• Fishbone diagram and other analysis tools identified poor control of
glue viscosity used to assemble stator and rotor core packs as a key root
cause.
Regression Plot
Y = -5.25290 + 1.82E-02X
R-Sq = 88.0 %
• More glue in a core pack means less iron which
means less volts.
• Regression Analysis revealed the exact relationship
between stator & rotor weight and Vsat.
146
Vsat (V)
Improve
147
145
144
Regression
95% CI
95% PI
143
8200
8250
8300
8350
Total Weight MS & MR
Control
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• Understanding gained from Regression Analysis allowed controls to be imposed.
• As a result there have been no failures for Vsat.
15
Combining Lean and Six Sigma
Think about any typical process …
Six Sigma focuses
primarily here
Value Added Activity
Lean focuses
primarily here
Non Value Added Activity
Lead Time
Lean  predominant impact is on Process Speed
Six Sigma  predominant impact is on Process Quality
Lean and Six Sigma are complementary tools for
reducing cost and improving customer service
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Combining Lean and Six Sigma
A powerful combination ...
eliminate
defects!
eliminate
waste!
failure!
SixSigma
Sigma
Six
LSL
&
Lean
USL
xbar (m)
Define value
Normal
VA
LSL
σ
USL
LSL
Pull by the customer
Kaizen
customer
Create value streams
ss ss s s
target
Quality
LSL
USL
Speed
Make value flow
USL
minimize
variation!
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vs Abnormal
NVA
... that drives impressive improvements
minimize
leadtime!
17
Toolbox Approach to CI
 Business problem
defines mix of tools
required
 Use whatever tool
and improvement
activity (Lean event
or Six Sigma
project) best suits
the problem!
When uncertain which to use, let common sense prevail – select the approach
that will work best in the local environment … and stick to the fundamentals.
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CI History at Goodrich
 Legacy Goodrich
 Aerostructures adopted Lean in mid-1990’s in
response to business crisis
 Several other divisions followed – independently or
with assistance from Aerostructures
 All divisions have at least some exposure and
experience with Lean … some isolated use of Six
Sigma
 Decentralized approach
 Former TRW Aeronautical Systems
 Evolution to Six Sigma in late 1990’s
 Solid foundation of training across AS
 Centralized approach
 Overall, some pockets of significant success, but …
… higher customer expectations and tougher market conditions
require that we take best practices and lessons learned and apply
them consistently across the Enterprise
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Leverage Value of Enterprise-Wide Processes
Value-Added Transfer
from Leaders to
Others
Learning Curve
Beginners
• Lessons Learned
• Best Practices
Strat Sourcing
• Training Material
Lean
• Trained Resources
Six Sigma
Innovation
Practitioners
Etc.
Leaders
SBU
Perception
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Awakening
Learning
Executing/Expanding
Want a Jumpstart
… Looking for
Best Practices
Want to
Accelerate
Learning
Willing to Help
Others but Fear
Interference
20
GR Continuous Improvement Program
Implement a single Goodrich-wide CI program that
encompasses traditional Lean and Six Sigma tools
Drawing on best practices from across Goodrich, this
program will include:

Comprehensive CI Training

Standard Materials

Certification Process

Management Review Process in SBU’s

Performance Measurement & Reporting

Common Assessment Tool For Measuring CI Progress
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Goodrich CI Program Elements
CI Training Curriculum
CI Overview
8 Hrs
Depth of Learning
INTRODUCTORY
Leadership
Overview
16 Hrs
Lean
Practitioner
~80 Hrs
SS Green
Belt
~80 Hrs
SS Green
Belt
~80 Hrs
Lean Expert
~80 Hrs
SS Black
Belt
~80 Hrs
Design CI
Expert
~80 Hrs
Lean Path
Six Sigma Path
Design Engineering Path
EXPERT
Curriculum Element
Target Audience
CI Overview
All Employees
Leadership Overview
Key Leaders
Level I (Lean Practitioner & Green Belt)
CI Users and Leaders
Level II (Lean Expert & Black Belt)
CI Subject Matter Experts
Design CI Expert (LPD & DFSS)
Design/R&D Engineers
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Goodrich CI Program Elements
Certification
 Criteria established for standard training certifications

Lean Practitioner, Lean Expert

Six Sigma Green Belt, Black Belt

Design Green Belt, Black Belt
Management Review Process
 Each division/site to have a process and structure to
oversee the execution of the local CI effort
 Local process and structure should encompass both Lean
and Six Sigma
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Goodrich CI Program Elements
Performance Measurement
 Key operational metrics to be implemented
 Probable selections …

Inventory Turns

On-Time Delivery

Cost of Quality

Value Added Per Employee

OSHA Safety Statistics
Common Assessment Tool
 Provides Roadmap for improvement
 Measures progress along five stages of maturity …
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Goodrich CI Program Elements
“Enterprise Excellence Assessment”
 Qualitative assessment of CI progress
 Five “Stages” of CI Maturity
 Seven “Enablers”
 Roadmap for Improvement
Stage I - Foundations for Change
Stage III - Enterprise Improvement
Leadership
Assessment Scorecard
Stage V - Pursuit of Perfection
Descriptive/Desired
Strategy State:
Leaders recognize need for change, have made initial commitment to the change process, and have communicated a case for
change to the
organization. of CI Tools
Application
Descriptive/Desired State:
Business has fully implemented strategy/policy deployment and results can be associated with improvement targets.
PDM/PDPRs
have been established
Descriptive/Desired
State: at the Tier II level (and below).
1
I
II
III
IV
V
Totals
Leadership
3
2
1
0
0
6
Strategy
5
4
3
2
1
15
Metrics
4
1
1
0
0
6
Customer Focus
5
3
2
1
0
11
14
3
1
roadblocks that may be encountered in a change effort.
Improvement targets set with customer (internal & external)
expectations
in mind. Characteristics
Expected
Initial vision for future state of the business formulated.
CI tools usage consistently exceeds level and depth of the
customer base.
Tier II PDPRs have been established for all SBU senior
leadership direct reports.
Initial case for change has been made to organization. Initial
Effective
application of CI tools enables year-over-year price
vision for improvement
communicated.
reductions to the customer if needed.
All team leaders can explain Key Results/metrics and which
PDM target improvement they impact.
Sr. business leader has made firm commitment to change.
for SBU
known and acclaimed
Senior leadershipDocumented
team is madesuccess
accountable
for are
driving
industry-wide.
change.
Objective Evidence/Comments (Provide attachments as needed)
4
3
1
1
0
9
Organizational
Development
5
4
1
1
0
11
5
2
1
1
1
10
Totals
31
19
10
6
2
68
Documented, year over year financial benefits are recorded
in all departments and value streams as a direct result of
applying CI tools.
There is clear accountability and consequences for not
achieving PDM target improvements.
Majority of suppliers are also using CI tools. SBU drives
expectations that supplier's suppliers too are implementing
the tools. Suppliers unwilling to implement are typically
replaced.
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Jun-02
8
Jul-03
6
4
0
Strat
Metrics
Cust
Focus
Proc Mgt
Org Dev
CI Tools
CI Growth
35
30
25
Score
Total Score
80
70
20
Jun-02
15
Jul-03
10
60
Score
Self-directed work teams determine which tools to
implement. CI facilitators play mentoring/coaching roles.
10
Lead
Application of CI
Tools
All C/I (kaizen) activity is clearly linked to a target
improvement.
Entire senior management team participates in defining
CI goals,
based
objective
financial results, are included in
vision for improvement.
This
wouldoninclude
training,
each employee's
performance expectations.
benchmarking, current
state assessments.
PDPR activity is linked to all Performance Planning and
Assessment objectives for all employees.
12
2
Process
Management
All employees can outline what Policy Deployment is and
describe their ability to impact the target improvements.
Understanding of need for committed resources to promote
All employees
use the tools and understand their benefits.
change. Initial provisioning
of resources.
Majority of training is in advanced tools.
All employees trained on Policy Deployment and it is a part
of new hire orientation.
Key Enablers
16
Score
Use of CI tools happens naturally and effectively in all departments and Value Streams and throughout the organization's supplier
Current Levelbase. Level
Definitions:
All employees
understand what tools are available, how to use them, and their respective benefits.
0 - No evidence
1 - Awareness - Aware Inadequacy Exists, Just Getting Started
2 - Planning
- Basic Scope Defined, First Steps Taken, Isolated Implementation
Current Level
Level Definitions:
3 - Understanding
- Basic Plans/Systems in Place, Exhibits Some of the Time, Glitches Still Happen
0 - No evidence
4 - Level
Commitment
- Exhibits
Characteristics
of Just
the Time,
Capable/Focused
Implementation in Place
1 - Awareness
- Aware
InadequacyMost
Exists,
Getting
Started
Current
Level
Definitions:
5 - Habit
Exhibits
of theScope
Time for
All Cases
2 - - Planning
- evidence
Basic
Defined,
First Steps Taken, Isolated Implementation
0 - NoAll
3 - Understanding
- Basic
Plans/Systems
Place,Just
Exhibits
Some
of the Time, Glitches Still Happen
1 - Awareness
- Aware
InadequacyinExists,
Getting
Started
Expected Characteristics 4 - Commitment
Objective
Evidence/Comments
(Provide
attachments
as
needed)
- Exhibits
Characteristics
the Time,
Capable/Focused
Implementation
in Place
2 - Planning
- Basic
Scope
Defined,Most
Firstof
Steps
Taken,
Isolated
Implementation
5 - Habit
- Understanding
Exhibits
All of the
TimePlans/Systems
for All Cases in Place, Exhibits Some of the Time, Glitches Still Happen
Sr. leaders understand need for change
and
basic
3 -gain
- Basic
knowledge of CI approaches. Also have understanding
of
4 - Commitment
- Exhibits Characteristics Most of the Time, Capable/Focused Implementation in Place
existing culture(s)
within
the business and potential
Expected
Characteristics
Evidence/Comments
(Provide attachments as needed)
5 - Habit - Exhibits AllObjective
of the Time
for All Cases
Division: Sample Division
Site: Sample Site
Date: Jul-03
5
50
0
40
Foundations
30
Local Impr
Ent Impr
Bus Re-Eng
Perfection
Stage
20
10
0
NOTES:
Jun-99
Jun-00
Jun-01
Jun-02
Jul-03
Date
25
Path to Enterprise Excellence
Stages of Maturity
Pursuit of
Perfection
Value Chain
Optimization
Enterprise
Improvement
Localized
Improvement
Foundations for
Change
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