Lean Six Sigma

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Lean Six Sigma April 7, 2008 Ms. LaDona Kirkland
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Lean Six Sigma

• Mr. JD Sicilia
• Director, DoD Lean Six Sigma Program Office
• DUSD Business Transformation Office

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• J.D. Sicilia
• Director
• DoD Lean Six Sigma Program Office

7 April 2008
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Executive Summary

• DoD has a strategic imperative to
  institutionalize continuous process improvement
• Lean Six Sigma is the method of choice
• Lean Six Sigma provides a balanced and holistic
  improvement methodology
• Proven robust in both commercial and government
  applications
• DTIC has embraced Lean Six Sigma
• DoD Lean Six Sigma Program Office stands ready to
  support your deployment

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The Department of Defense is engaged in an
historic Lean Six Sigma deployment

• 515M budget and 5M people the largest
  deployment ever undertaken
• Similar to deploying LSS across a country!

Gross Domestic Product
Population
5M
Millions of People
Trillions of Dollars
515B
With Supplemental
If DoD were a country
It would rank as 17th largest economy (16th with
supplemental)
It would rank as 110th largest country by
population
Source World Bank, 2006
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The stakes are high DoDs future success
depends on Agility

• The world around us continues to change
• Middle East
• Technology
• Economy
• Dynamic political/military situation
• Are DoD organizations agile enough to face the
  next crisis?
• With a full workload now, what gets dropped?
• Do our people and processes have the capacity to
  respond immediately?
• Is our workforce agile enough to face the next
  crisis?
• The status quo is unacceptable LSS provides the
  Warfighter a focused, enterprise framework for
  continuous improvement

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DoD leadership has chosen LSS based on its proven
effectiveness
April 30, 2007 DEPSECDEF memo
FY 2009 Presidents Defense Budget
Total 515B
Operations and Maintenance (179.8B)

• Assign a CPI/LSS focal point to coordinate with
  the DoD CPI/LSS Program Office.
• Establish a 12 to 18 month workforce training
  objective of 1 LSS black belt trained and 5
  green belt trained personnel. Personnel selected
  should include top-rated staff members.
• Include CPI/LSS in individual employee
  performance objectives.
• Provide support to the DoD CPI/LSS Program Office
  in DoD-wide process improvement initiatives.
• Report progress and outcomes of ongoing and
  completed CPI/LSS projects and activities to the
  DoD CPI/LSS Program Office every 30 days
  initially.

Military Personnel (125.2B)
Procurement, Research, Development, Test and
Evaluation (183.8B)
Family Housing and Facilities (26.6B)
DoD Leadership understands that Lean Six Sigma
can help it do more with its fixed budget
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So what makes LSS so good?
The two methods complement each other and deliver
lower operational cost as a natural by-product

• Lean Principles
• Specify what creates value from the customers
  perspective
• Identify all the steps along the process chain
• Make those processes flow
• Make only what is pulled by the customer
• Strive for perfection by continually removing
  wastes

• 6 Sigma
• If you cannot express what you know in numbers,
  you dont know much about it
• If you dont know much about it, then you cant
  control it
• If you cant control it, you are at the mercy of
  chance.

Six SigmaTM Methods
Product or Service Outputs
Increase Consistency Reduce Variation Eliminate
Defects The Customer Is The Driving Force Behind
Improvement Efforts
Increase Efficiency Simplify Work Flows Focus On
High-value Steps Eliminate Waste The Customer Is
The Driving Force Behind Improvement Efforts
Basic tenants articulated by Dr. Mikel Harry,
the father of Six Sigma at Motorola
Lean Methods
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Lean Six Sigma is customer driven

• Voice of the Customer (VOC)
• Confirming the VOC is critical for a successful
  Lean Six Sigma project
• Lean Six Sigma is all about meeting or exceeding
  customer needs or Critical to Quality (CTQ)
• Quality
• Cost
• Delivery
• Many projects fail because the VOC is not
  correctly captured or confirmed

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The two methods are complementary

• Lean is a methodology that evaluates processes
  with a focus on
• Speed
• Efficiency
• Lean aims to cut waste and remove non-value added
  activities
• Waste and value are measured with respect to the
  customers requirements

Views of your process
What you BELIEVE it is
What it ACTUALLY is
What you WANT IT TO BE
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Why is variation a critical point of emphasis?
6s
3s
Process
Process
3.8s
6s
99 Good
99.99966 Good
Practical Examples

• 7 lost articles of mail per hour
• 1.7 incorrect surgical operations per week
• 68 wrong drug prescriptions each year
• 1 hour without electricity every 34 yrs

• 20,000 lost articles of mail per hour
• 5,000 incorrect surgical operations per week
• 200,000 wrong drug prescriptions each year
• No electricity for almost 7 hours each month

Variation has a major impact on the customers
perception of quality
s
If we assume standard government processes
operate at 1 these examples become

• 636,000 lost articles of mail per hour
• 159,000 incorrect surgical operations per week

• 6.36M wrong drug prescriptions each year
• No electricity for approximately 2 days per week

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DTIC has started its LSS journey
Progress 8 Green Belts trained 8 Projects in
progress
DTIC is Committed to LSS is Committed to
Valuing our customers and understanding their requirements initially and continuously Valuing the voice of the customer
Meeting our customers changing needs through continual technological evolution, information agility and process innovation Continually adjusting to the needs of the customer
Adopting structured change management processes to ensure success Understand the need to address the transition from old to new processes
Sustaining excellence in what we do Establish a goal of 6 sigma as our standard of excellence
Building and retaining a flexible, well-trained workforce Targets top performers to further enhance capabilities through LSS training as Green Belts and Black Belts
Ensuring mission alignment with DoD and National Defense Initiatives Only work on projects which align with the strategy of DoD and national Defense initiatives
Improving internal business processes Improve our business processes to those of best in class
Spending taxpayer dollars wisely Improve process effectiveness and efficiency
Being accountable for our actions Assign responsibility and accountability to those responsible for the process
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LSS can be used to improve DTICs core functions
DTIC Core Function LSS Enablers
DTIC Collect Information Acquisition and receipt of documents, summaries and other records for input to the Research Engineering (RE) databases that DTIC holds as central repository LSS Demands Data Driven Process Improvement use data to perfect the collection and management of data
DTIC Format/Process/Preserve Information Creation of descriptive and subject metadata for retrieval. LSS Uses Graphical Analysis Tools to describe process inputs and outputs, store for future projects
DTIC Disseminate Information Distribution and fulfillment of requests and orders such as documents, citations, in all formats and mediums LSS Distributes Process Knowledge rigorous tracking of project data and knowledge management leverage automated tools to drive effectiveness
DTIC Customer Information Assistance Marketing and registration services, providing reference, retrieval, referral, current awareness, document delivery and billing services, providing training programs, and conducting user conferences, seminars, exhibits, tours and briefings LSS is fundamentally customer focused the methodology addresses review and improvement of transactional process including customer facing processes
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Projects have been identified and are underway
Project Description Belt Candidate
DTICKER NAVIGATION Information of the DTICKER is difficult to find. This leads to user frustration and less than optimal utilization of the DTICKER. Organization of the DTICKER is convoluted and not user friendly. Searches for information are unsatisfactory because it takes too long, too many mouse clicks are required to retrieve desired information, links are broken, or information is not found Geoff Rassmussen
DTICKER CONTENT Information on the Human Resources (HR) site is not current. The processes for posting current information or removing outdated information are not clearly defined. LaDona Kirkland
PERSONNEL RECRUITMENT PROCESS The current recruitment process is too long to allow for quick turnaround and cumbersome for hiring employees. This results with a loss in productivity and increased cost for retraining. LaToya Thomas
FINANCIAL MANAGEMENT TRACKING Numerous instances exist in which funding documents contain incorrect expense item-to-product code designations and time to process a funding document increased causing subjective reporting Pam Shepherd
QUALITY IMPROVEMENT Standardize various processes to increase efficiency and accuracy to track and report performance measures so that data is clean and reporting is consistent Shelley Ford
PRODUCTION CODE Baseline production code bugs reported post-production to increase quality of DTIC products Judy Berger
TASK MANAGEMENT Improve general task request, tracking and management by prioritization, issue escalation, and dependencies (procurement, customer responses, digital certificates.) Chau Vuong
TRAINING INFORMATION MANAGEMENT Management of training information (including tracking) for employees is difficult and often does not meet reporting requirements. The current raining information collection is time consuming and redundant Jack Jones
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Key next steps

• DTIC
• Champion training
• Project selection
• Belt selection
• Belt training
• Project completion
• DoD LSS Program Office
• Improve effectiveness of Warfighter support
• Continue training at all levels and complete
  strategically aligned projects
• Horizontal integration and standardization
  efforts underway
• Committed Leadership
• Strategic Alignment
• Data-driven Decisions
• Emerging CPI Culture

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Questions?
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Backup
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The deployment will increase DoDs maturity in
well defined stages
Fiscal Year
2008
2009
2010
2011
2012
Program Monitor and CPI
Program Launch
Institutionalize LSS/CPI
Sustain LSS/CPI
LSS/CPI Transformation





Leadership Buy-in
Project Portfolio Generation
Belt Selection/ Training
Project Execution
Results Tracking/ Lessons Learned
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LSS projects must deliver tangible benefit to our
end customerthe Warfighter
Human Resources Management
Who are our people, what are their skills, where
are they located?
Weapon System Lifecycle Management
Who are our industry partners and what is the
state of our relationship with them?
Warfighter
Materiel Supply Service Management
Core Business Missions
What assets are we providing to support the
warfighter and where are these assets deployed?
Real Property Installations Lifecycle Management
How are we investing our funds to best enable the
warfighting mission?
Financial Management
Plan/Budget Procurement IT HR Legal Design/D
ev Storage/Trans. Maintenance Disposal
Following a rigorous project selection process
ensures that projects initiated at the functional
level address the cross-functional Core Business
Missions
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Across DoD LSS is at varying levels of deployment
OSD, DoD Agencies and Field Activities

• DoD level LSS goals
• Support leaderships business transformation
  objectives
• Drive consistency throughout the enterprise

LSS Experience .5 yrs
Projects1 Active 541 Complete 532
Belts1 Black 160 Green 2,335
LSS Experience 3 yrs
LSS Experience 5 yrs
LSS Experience 2.5 yrs
Projects Active 3,071 Complete
2,099
Projects Active 1,856 Complete
5,434
Projects Active 1,423 Complete
4,457
Belts Black 902 Green 2,411
Belts Black 1,122 Green 7,343
Belts Black 260 Green 871
better stewardship of taxpayer dollars where
greater efficiency leads to improved
effectiveness. . . creation of more readiness
and assets within our budget through Lean Six
Sigma.
Air Force Smart Operations for the 21st Century
(AFSO21) key behind learning processes is to
achieve a transformation outcome that will save
cost, time and effort.
Lean Six Sigma techniques implemented throughout
the Army .. reaching a 2 billion-savings mark
this year.
Burning Platform
1includes OSD Staff, DoD Agencies and Field
Activities All data based on March2008 DoD LSS
Data Call
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The two methods offer complementary perspectives
in satisfying customer expectations (cont)

• Six Sigma is a methodology that focuses on
  improving quality through reducing variation

Inputs
Transformation Process
Outputs
to change these.
Must change these
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LSS Practitioner slide
Role Responsibility
Green Belt Deliver successful small, focused departmental projects Assists with implementation of KPIs Assist Black Belts with bigger projects Assists with Process Control Audit functions
Black Belt Hands-on project leadership and execution of DMAIC strategy Drive process and cultural change Assists in development and implementation of key process measures Train and mentor the local organization on Six Sigma methodologies
Master Black Belt Supports leadership via project selection and program management Mentors, trains, and supports project teams Leads high impact cross-functional level projects
Champion Select improvement projects consistent with mission goals and objectives Drive success via program support and elimination of barriers
Deployment Team Leads efforts to create CPI Strategic Plan Makes decisions on Program Management Issues Establishes Program Policy for training and certification
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Improve General and Flag Officer Nomination
Letter Process Project Sponsor LtCol
Stovall Process Owner COL Munster Greenbelt MAJ
Holliday
ANALYZE
DEFINE
MEASURE
Problem Statement

• A large number of 3/4 star nominations that were
  sent to the SecDef from Apr to Nov 07 contained
  errors and had to be rewritten.
• Improve our support to the customer by decreasing
  or eliminating errors
• Improve the timeliness of nominations
• Save time for CJCS
• Eliminate rework
• Error free nomination letters initial goal less
  than 5 error rate
• typographical errors
• material/research errors in information
  pertaining to nominee
• incorrect references/interpretation of law

Primary Metric Defect Rate DPMO Sigma
Level Data Source Time Period

• Most significant root causes
• Insufficient training
• Outdated or incorrect nominee information
• Ignorance of the law

letters returned with errors 33.33 333,333 1.93
OSD and JS Records Apr-Nov 2007
Expected Benefits
Customer Spec

• Process mapping revealed hidden rework loops
• Errors in service letters flow through to JS
  letters
• Lack of templates and SOPs leads to reinventing
  the wheel on each nomination
• Incorrect JMIS (joint tour) information
• Ignorance of constantly changing law

Defect
RESULTS
IMPROVE
CONTROL
Legacy Process
Improved Process
Four process improvement areas were identified to
address the main root causes of errors
Developed a control plan to implement
improvements and ensure sustainability
Process monitored using control chart (p-chart)
to ensure improvements are sustained
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6.3
1
1.9
3.0
2
3
Results based on initial implementation Goal of
5 or less should be achievable once full
implementation is complete
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Point of Contact
Mr. JD Sicilia DoD Lean Six Sigma Program
Office 703-693-0031 John.Sicilia_at_osd.mil