Yellow Belt Overview

CTS Lean Six Sigma
Yellow Belt Training

Version 1, November, 2010
"The design(s) and/or concept(s)shown in this presentation

are the confidential property and invention of CTS Corporation Automotive
CTS Lean Six Sigma
Introduction
Course Objectives
Understand the CTS Lean Six Sigma Journey
Understand and apply the principles of Lean and Six Sigma
Waste Reduction
Variation Reduction

We Assume You Know...
Basic Algebra
Process Knowledge in your area
Broad Familiarity with CTS businesses and processes
Basic Computer Skills
Spreadsheets
Word Processing
Graphics
Charting

Agenda
Day 1
Course Guidelines
Introduction to Lean Six Sigma
Define
Day 2
Measure
Day 3 and 4
Analyze
Day 5
Improve
Day 6
Control
Replicate
Closure
Introduce Yourselves ..
Name
Business Unit / Function
Prior Exposure to Lean Six Sigma
Expectations from Class

CTS Lean Six Sigma
Introduction to
Lean Six Sigma
Brainstorm .
What do Lean and Six Sigma mean to you ..

Various Ways to Look at Six Sigma

Statistical
StatisticalMeasuring
Measuring
Process
Performance
Process Performance 3.4
3.4Defects
Defectsper
perMillion
MillionOpportunities
Opportunities
Problem
ProblemSolving
Solving
Consistent
ConsistentApproach,
Approach,
Common
Language
Common Language&&
Tools
Tools
Define
Define
Measure
Measure
Analyze
Analyze
Improve
Improve
Control
Control
Strategic
StrategicEnable
Enable
Execution
of
Execution ofStrategy
Strategy
- A clearly defined problem

- Understand and measure the As Is Process
- Analyze cause-effect, identify critical few
- Experiment with and improve process based on data
- Monitor critical outputs to prevent repeat failure
Alignment
Alignmentwith
withStrategy
Strategy &&Financial
FinancialGoals
Goals
Focus
Focuson
oncore
coreprocesses,
processes,value
valuestreams
streams
Results:
Results:Successful
SuccessfulStrategy
Strategyexecution
execution&&financial
financialperformance
performance

History
1733
Abraham De Moivre introduces concept of normal distribution
1900s
The Quality Pioneers: Deming, Juran, Shewhart
1950s> Toyota develops Toyota Production System (Lean)

1980s
Motorola develops Six Sigma incorporating quality concepts
1990s
Allied Signal (Honeywell) & GE adopt and adapt Six Sigma
Mid 90s Six Sigma grows as a business approach

2000s
Lean and Six Sigma get integrated into a unified system

Leadership Perspectives
The big myth is that Six Sigma is about quality control and
statistics. It is that but its a helluva lot more. Ultimately it drives
leadership to be better by providing tools to think through tough
issues.. It can turn a company inside out, focusing outward
on the customer.
-Jack Welch, Jack: Straight from the Gut
Six Sigma is one of the best things we have ever done. . Since
the inception of the program in September 1999, weve saved or
avoided spending a total of $1.4 billion, completed 7,500 projects
and trained 6,000 belts with almost a million hours of training ..
- Tim Solso, CEO, Cummins, upon receiving Six Sigma
CEO of the Year Award, 2007

LSS Can Facilitate Dramatic Performance

Improvement
Molding 2 Shot Friction Lever 705-62-001
FTY CTS
CTS TOOL
FTY
TOOL ROOM
ROOM
120%
120%
18.0%
100%
80%
16.0%
% of Parts with
Deformations
100%
60%
80%
40%
60%
20%
14.0%
12.0%
17.6%
10.0%
8.0%
6.0%
40%
0%
4.0%
20%
0.0%
0.0%
2.0%
Current Process
Manual Pickoff
0%
Molding 2 Shot Friction Lever Sort Costs
700-62-002 / 702-62-002 / 705-62-001
June 2009 - June 2010
Jan
Target (%) 100%
Actual (%) 85%
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
97%
94%
0.70
0.74
88%
96%
25of95
24of83
3/26
3/74
2/59
100
3/46
80
$ (K)
6of40
Feb
100%
FTY TOP 4 MTD
FTY TOP 4 YTD
60
50
2
1
$84
40
20
0
$0
Current Cost
Future Cost
40
30
20
60

10
So What is Six Sigma Performance?

Process
Capability
st
Defects per
Million
Opportunities
Long Term
Yield
308,537
69.15%
66,807
93.32%
6,210
99.38%
233
99.98%
3.4
LSL
Defects
USL
Acceptable
Defects
99.99966%
3.4 defects per million opportunities

Figures are based 1.5 sigma shift for the long term

Voice of the Process
=7
-6s
-5s
-4s
-3s
-2s
-1s
+1s +2s +3s +4s +5s +6 s
68.26%
95.44%
99.73%
99.9937%
99.999943%
99.9999998%
Typical Areas under the Normal Curve

For short term performance
Is 99% Good Enough?

99% Good
99.99966% Good (6 Sigma)
20,000 lost articles of mail per hour
Seven articles lost per hour
Unsafe drinking water for almost 15

minutes each day
One unsafe minute every seven

months
5,000 incorrect surgical operations

per week
1.7 incorrect operations per week
Two short or long landings at most

major airports each day
One short or long landing every

five years
200,000 wrong drug prescriptions

each year
68 wrong prescriptions per year
No electricity for almost seven hours

each month
One hour without electricity every

34 years

History of Lean
Toyota Production System Launched in 1950 and Refined through the

decades
Increase in production efficiency through relentless focus on waste reduction
1990: Womack, Jones & Roos (The Machine that Changed the
World) coin the word Lean to define Toyota Production System

8 Wastes
Defects
Overproduction
Waiting
The Worst!
Drives Waste in Other Areas
Non Utilized Talent

Transportation
Inventory
Motion
Extra Processing

Examples of Waste
Forms of Waste
Manufacturing
Office
Defects
Repair, recovery & scrap
Invoice errors
Overproduction
Making more than required for next

step
Unused reports, CC: All
Waiting
Excessive WIP
Forms waiting for approval in In

Box
Non-utilized talent
Not utilizing employee feedback
Not utilizing employee feedback
Transportation
Forklifts, excessive movement of

WIP/FG
Transporting forms from In Box

to In Box
Inventory
WIP in excess of demand, Just in

Case
Excessive office supplies
Motion
Movement of worker from one

operation to another
Distributed storage of office

supplies
Extra Processing
Additional machining ??
Too many signatures on the form

5 Principles of Lean
Lean can be summarized in five principles*:

Principle 1 - Precisely specify the value of a specific process
Principle 2 - Identify the value stream for each process
Principle 3 - Allow value to flow without interruptions
Principle 4 - Let the customer pull value from the process
Principle 5 - Continuously pursue perfection
* Womack, J. P. and D. T. Jones, 1996, Lean Thinking, Simon & Schuster
The Five Principles Of Lean. . . Provides a Framework for Waste Elimination

How Lean Do You Think You Are?

The Opportunity*
20% - 60% Reduction in Process Cycle Times
>50% Improvement in Resource Utilization
10% - 50% Increase in Gross Margins
>30% Gain in Process Capacity
Dramatic Improvement in Schedule Predictability
* Based on reported results from firms spanning several industries, 1999 - 2000

Design for Six Sigma (DFSS)

Developed for product and process design applications
Focus is on designing in Six Sigma Quality
70-80% of defects are designed in
DFSS allows for defects to be removed at design stage
Define
Measure
Analyze
Design
Verify
DFSS includes rich and advanced tool kit that can be aligned with product
development process
QFD, Design FMEA, Axiomatic Design, Design of Experiments (DOE), Theory of
Inventive Problem Solving, etc.
DFSS can be aligned with pre-existing toll gate processes

KISS Keep It Simple Sigma

Growing realization that traditional Six Sigma approach may be
over-kill
Complicated statistical tools may not apply everywhere
Focus on simpler Lean tools to achieve faster gains in reducing

waste and inefficiency
Simple tools (Process mapping, Cause & Effect, SOP, etc) can remove
60-70% of inefficiency
Enables faster deployment, particularly in smaller companies
Recommend KISS for CTS

The Costs of Quality
Prevention
Training
Systems & Planning
Preventive Maintenance, etc
Appraisal
All Inspection
Test Equipment Calibration
Audits
Internal
Lead to lost Opportunity Costs

Lost Sales
Declining Market Share, etc
Declining Reputation
Rework, Retest, etc

Scrap
External
Customer Complaint processing
Returned goods processing & replacement
Legal / Settlement costs

Benefits and Pitfalls of LSS
Benefits
Improves quality and efficiency
Strengthens culture
Helps develop a common
approach to problem solving
Helps develop future talent

Relatively low risk and nominal
investment in $$
Significant investment in people
Impacts the bottom-line
Pitfalls
Lack of leadership support will cause it
to fail
Over emphasis on tools versus
methodology
No clear alignment with operational
goals
Avoid Six Sigma for Six Sigmas sake
Needs dedicated resources to run the

program

CTS Lean Six Sigma Approach
Collaborative . With business units

Tangible . Benefits are meaningfully felt
Sensible . Minimize Jargons and excessive statistics

Current Lean Sigma Activities at CTS

Grassroots Lean Six Sigma activity happening in all business units
Dashboards being used in plants in all business units, but not common
across businesses.
Significant training investment in all businesses .. but not coordinated.
Recent CTS hires with LSS training represent nucleus for future LSS
activity.
Evidence of similar process issues across business units.
Strengthening supplier management
New product Introduction and Launch processes
Market Opportunity Assessment - Advanced Engineering linkage
Limited evidence of step function improvement initiatives.

EC goal of 10x/5years improvement in Manufacturing cycle time

Key Initiatives to Launch Lean Six Sigma in CTS

1.
Form CTS Quality Council to enable alignment of Quality policy and

sharing of best practices.
2.
Develop Lean Manufacturing training modules and deploy company

wide.
3.
Identify and train Black Belts in DMAIC and Design of Six Sigma.
4.
Launch CTS wide scrap reduction initiative.
5.
Develop Reward & Recognition mechanisms for trained Green Belts

and project teams.
Training and Scrap Reduction Initiatives Will Run Simultaneously
With Other Activities

PERFORMANCE IMPROVEMENT
INFRASTRUCTURE
Teach
Support
Consult
Measure
Measure
Analyze
Improve
Control
Executive
ExecutiveSteering
SteeringTeam
Team
Champion
Champion
Functional
FunctionalManager
Manager
Finance
Finance
Process
ProcessOwner
Owner
Master
MasterBlack
BlackBelt
Belt
Green Belt
Black Belt
Green Belt
Yellow Belt
Yellow Belt
Communication
and Coordination
Vision
Priority
Path
Define
TEAMS AND BELTS

KEY ROLES OF THE CHAMPION

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
Drives down costs, increase revenue

Identifies competent Black Belts
Selects critical projects, leader(s) and team members
Uses tools and techniques and upholds methodology
Provides management, leadership, support, and mentoring to
peers and leaders
Removes organizational obstacles
Provides approval and support
Asks the right questions
Provides recognition and rewards
Communicates with executive management
and peers

KEY ROLES OF THE BLACK BELTS

1. Keep Champion informed of project progress
2. Develop, coach and lead cross-functional
improvement teams and projects
3. Mentor and advise management
4. Use, teach, and disseminate Six Sigma tools and
methods
5. Actively seek to use Six Sigma Breakthrough
process to solve problems
6. Learn to align projects to business objectives
7. Provide project management, facilitating and
leading teams, recommending team membership

KEY ROLES OF THE GREEN BELT

1. Leads smaller scoped or departmental projects
2. Actively participates and contributes expertise to Black
Belt projects
3. Uses Six Sigma Breakthrough DMAIC process to solve
problems
4. Completes multiple projects over time, one at a time
Improvement is part of their job !

KEY ROLES OF TEAM MEMBERS

1. Attend meetings
2. Complete assignments between meetings
3. Actively participate and contribute expertise
4. Listen to others ideas
5. Use Six Sigma Breakthrough to solve the problem

KEY ROLES OFTHE MASTER BLACK BELT

1. Provides technical support and mentoring
2. Facilitates multiple projects
3. Provides support and advise to Champions and Executive
Management
4. Trainer of Six Sigma tools and techniques
An
An internal
internal consultant,
consultant, trainer,
trainer, and
and expert
expert

KEY ROLES OF PROCESS OWNER
1. Manages the process to be improved

for Process Centered Organizations)
2. Commits(Optional
to
3.
4.
5.
6.
7.
Helping team help understand the current process

Implementing the proven remedies at the Improve step
Maintaining the process at the Control step
Uses all team-developed tools

Responsible for holding the gains
Ensures continued incremental improvement
Maintains all project documentation
at the completion of the project

KEY ROLES OF MONEY BELT

1.
Partner with Project Team as an ad hoc member to provide financial forecasting

support
2.
Provide financial valuation and validation support during Define Phase through
project closure
3.
Provide updated financial forecasts whenever there is a change in the project goal,
expected results, timeline, or valuation assumptions.
4.
Provide financial forecast by month for the first 12 months, and an annualized
amount thereafter
5.
Track and report project actual financial impact (beginning with the implementation
of project solutions
6.
Assist in refinement of financial valuation, reporting, and documentation tools for

Lean Six Sigma


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CTS Lean Six Sigma

Yellow Belt Training

"The design(s) and/or concept(s)shown in this presentation

CTS Lean Six Sigma

"The design(s) and/or concept(s)shown in this presentation

We Assume You Know...

"The design(s) and/or concept(s)shown in this presentation

"The design(s) and/or concept(s)shown in this presentation

CTS Lean Six Sigma

"The design(s) and/or concept(s)shown in this presentation

Various Ways to Look at Six Sigma

- A clearly defined problem

"The design(s) and/or concept(s)shown in this presentation

Abraham De Moivre introduces concept of normal distribution

The Quality Pioneers: Deming, Juran, Shewhart

1950s> Toyota develops Toyota Production System (Lean)

Motorola develops Six Sigma incorporating quality concepts

Allied Signal (Honeywell) & GE adopt and adapt Six Sigma

Mid 90s Six Sigma grows as a business approach

Lean and Six Sigma get integrated into a unified system

"The design(s) and/or concept(s)shown in this presentation

"The design(s) and/or concept(s)shown in this presentation

LSS Can Facilitate Dramatic Performance

FTY TOP 4 MTD

FTY TOP 4 YTD

"The design(s) and/or concept(s)shown in this presentation

So What is Six Sigma Performance?

3.4 defects per million opportunities

"The design(s) and/or concept(s)shown in this presentation

Voice of the Process

+1s +2s +3s +4s +5s +6 s

Typical Areas under the Normal Curve

Is 99% Good Enough?

99.99966% Good (6 Sigma)

20,000 lost articles of mail per hour

Seven articles lost per hour

Unsafe drinking water for almost 15

One unsafe minute every seven

5,000 incorrect surgical operations

1.7 incorrect operations per week

Two short or long landings at most

One short or long landing every

200,000 wrong drug prescriptions

68 wrong prescriptions per year

No electricity for almost seven hours

One hour without electricity every

"The design(s) and/or concept(s)shown in this presentation

Toyota Production System Launched in 1950 and Refined through the

"The design(s) and/or concept(s)shown in this presentation

Non Utilized Talent

"The design(s) and/or concept(s)shown in this presentation

Repair, recovery & scrap

Making more than required for next

Unused reports, CC: All

Forms waiting for approval in In

Not utilizing employee feedback

Not utilizing employee feedback

Forklifts, excessive movement of

Transporting forms from In Box

WIP in excess of demand, Just in

Excessive office supplies

Movement of worker from one

Distributed storage of office