Lean Six Sigma And Environmental Sustainability (LSS) - Stlsafety.org

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Nov 10, 2013 (3 years and 5 months ago)

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Lean Six Sigma and
Environmental Sustainability

Georgi

Popov, PhD, QEP, CMC

gpopov@ucmo.edu


Introduction, objective and target


A Value
-
added project for EMS implementation will
be presented.


Lean Six Sigma (LSS) principles are combined with
risk assessment tools, variation reduction and
sustainability methods.


The project includes development of new tools for
ISO 14001 implementation.


The objective is to reduce aspects significance
scores.


The target is to achieve statistically significant
reduction of significance scores.

Problem Description


According to ISO 14001 procedures, every environmental
aspect will have to be evaluated.


This project defines the evaluation criteria used to
determine the degree of significance of each aspect on
the Environmental Aspects & Impacts List, upon the
identification and inclusion of a new aspect to this list.


Significant investment in personnel and time is necessary
to implement EMS.


Difficult to establish proper procedures for
environmental aspects determination and evaluation.


This process presents difficulties due to significant
variation of the environmental aspects.

Lean


Lean manufacturing

or
lean production
, which
is often known simply as "
Lean
", is the optimal
way of producing goods through the removal of
waste and implementing flow, as opposed to
batch and queue.


Lean manufacturing is a generic process
management philosophy derived mostly from
the Toyota Production System (TPS)

History Timeline for Lean Manufacturing

Source:
http://www.strategosinc.com/lean_manufacturing_history.htm


Lean Means Speed

Source:
Lean Six Sigma, Michael George


Ford vs. Toyota Lean


Henry Ford was the first person to understand the impact of
process speed on cost. His “process” was fabulously successful
for a dozen years… but ultimately failed because it could only
produce one product.
Diversity???


The sovereignty of the customer and the profusion of products
to satisfy every need, require a process that can responsively
deliver many different products with high velocity and high
quality, and low cost and minimal invested capital. The goal of
Lean is to quickly make
-
to
-
order a profusion of different
products with the low cost first attained by Ford.


These seeming contradictions

low cost combined with high
quality and high speed

were first overcome by Toyota


Until
you reach a tipping point…

Waste
-

JIT


The "flow" (or smoothness) based
approach aims to achieve JIT, by
removing the variation caused by
work scheduling and thereby
provide a driver, rationale or target
and priorities for implementation,
using a variety of techniques.


The effort to achieve JIT exposes
many quality problems that are
hidden by buffer stocks; by forcing
smooth flow of only value
-
adding
steps, these problems become
visible and must be dealt with
explicitly.

Problems
-

JIT

Lean implementation


System engineering


Lean is about more than just cutting costs in the
factory. One crucial insight is that most costs are
assigned when a product is designed.


Often an engineer will specify familiar,
safe materials

and processes rather than inexpensive, efficient
ones.


This reduces project risk, that is, the cost to the
engineer, while increasing financial risks, and
decreasing profits.


Good organizations develop and review checklists to
review product designs.

The 80/20 Rule


The achievements possible with Lean Six Sigma
principles will have little impact if you apply them to
process steps that contribute little to delay time, costs,
customer satisfaction, etc.


You have to know where to focus your efforts, and how
to determine priority order.


EHS


ISO 14001 Aspects Prioritization
(MS Excel)


80% of lead time delay is caused by less than 20% of
the workstations (the Time Traps).


We only have to find and improve 20% of the
workstations/EHS aspects to reduce lead time

Where Are YOUR Time Traps?


If 80% of the delay is caused by 20% of the
workstations, it is essential that we find those
20% and eliminate them using the Lean Six Sigma
tools. So… how would you identify the Time
Traps in your processes?
Perc

EMS and IH Lab
example


The achievements possible with Lean Six Sigma
principles will have little impact if you apply
them to process steps that contribute little to
delay time, costs, customer satisfaction, etc.


You have to know where to focus your efforts,
and how to determine priority order.

Six Sigma


Six Sigma was developed by Motorola in the
1990s. It is based on well
-
established statistical
quality control techniques and data analysis
methods.


The term

sigma

is a Greek alphabet letter (σ)
used to describe variability.


A Six Sigma quality level equates to
approximately 3.4 defects per million
opportunities, representing high quality and
minimal process variability.

Six Sigma


Six Sigma consists of a set of statistical methods for
systemically analyzing processes to
reduce variation.


Six Sigma's toolbox of statistical process control and
analytical techniques are being used by some companies
to assess process quality and waste areas to which other
lean methods can be applied as solutions.


Six Sigma is also being used to further drive productivity
and quality improvements in lean operations.

LEAN, 6
σ

Process

Source: http://www.sixsigmainstitute.com/leansigma/index_leansigma.shtml

DMAIC
PtD

Model

PtD

Model

Define

Measure



Analyze



Improve



Control

Delphi

Bow Tie

H of C

SIPOC FS

Bow Tie FS

Brainstorming

Env. RA

SIPOC CS

ROI

R3

Preliminary HA

FTA

VSM

FA

FMEA

Eco RA

IH RA

ENVIRONMENTAL ASPECT SIGNIFICANCE DETERMINATION SYSTEM

ENVIRONMENTAL ASPECT SIGNIFICANCE DETERMINATION
SYSTEM

Method of study

Significant score variation

Solution to the problem


To reduce variation, new control methods had to
be proposed for each environmental aspect.


New tools and statistical methods were
developed to solve the problem. Lean Six Sigma
tools were utilized.


The new tool is based on PDCA approach


The risk assessment tool could be considered
significantly expanded version of failure modes
and effects analysis (FMEA) methodology. (ASQ)

Scores comparison

Statistical evaluation of the difference


The author used t
-
test to determine if
the difference was
statistically
significant.


T
-
test showed
statistically
significant
difference. T critical
was 1.66 and t
-
stat
was


4.21.

Conclusions


Reduction of Aspects significance scores was
achieved.


The project demonstrated statistically significant
reduction of significance scores.


The project was successful and accepted by the
management. It reduced standard deviation by
nearly 79%.


The mean and the median scores were also
significantly reduced.

Sustainability


Perc

example


Risk Assessment


Future state


RRR

Risk Assessment


Perc

Example

FMEA


Perc

Example

Future State
-

RA

R3

IH & EMS


EHS professionals have to develop management
skills and diversify their knowledge to overcome
difficulties during such projects.


Significant investment in EMS significance scores
variation reduction projects can’t not be easily
justified based on risk assessment alone.


Future leaders in the safety profession will have
to develop statistical skills and demonstrate
knowledge in financial management.

IH & EMS


EHS professionals have to be familiar with variety
of risk management techniques, LEAN Six Sigma
tools and financial management principles.


Complex projects require multi
-
disciplinary
knowledge and cross
-
disciplines management
skills.


EHS leaders have to become familiar with
different organizational structures and variety of
stakeholders interests to complete such projects.

References:


1.

Donna c. S. Summers (2011). Lean Six Sigma: process Improvement Tools and Techniques. Prentice
Hall, ISBN
-
13: 978
-
0
-
13
-
512510
-
6.,


2.

ASQ FMEA. Retrieved from internet on March 31, 2012. Retrieved from: http://asq.org/learn
-
about
-
quality/process
-
analysis
-
tools/overview/fmea.html


3.

ASQ PDCA: Retrieved from internet on March 31, 2012. Retrieved from: http://asq.org/learn
-
about
-
quality/project
-
planning
-
tools/overview/pdca
-
cycle.html


4.

StatSoft
. Retrieved from internet on March 31, 2012. Retrieved from:
http://www.statsoft.com/textbook/basic
-
statistics/?button=1


5.

StatSoft

T
-
test: Retrieved from internet on March 31, 2012. Retrieved from:
http://www.statsoft.com/textbook/basic
-
statistics/#t
-
test for independent samples


6.

ISO 14001.2004 Environmental management systems
--

Requirements with guidance for use.
Retrieved from internet on March 31, 2012. Retrieved from:
http://www.iso.org/iso/iso_catalogue/catalogue_ics/catalogue_detail_ics.htm?csnumber=31807


7.

ISO 14004.2004 Environmental management systems
--

General guidelines on principles, systems
and support techniques. Retrieved from internet on March 31, 2012. Retrieved from:
http://www.iso.org/iso/iso_catalogue/catalogue_ics/catalogue_detail_ics.htm?csnumber=31808&ICS1=1
3&ICS2=20&ICS3=10


8.

ISO 14031.1999 Environmental management
--

Environmental performance evaluation
--

Guidelines. Retrieved from internet on March 31, 2012. Retrieved from:
http://www.iso.org/iso/iso_catalogue/catalogue_tc/catalogue_detail.htm?csnumber=23149


9.

Lean Six Sigma (LSS) Tools for Bottom
-
Line Results. Retrieved from internet on March 31, 2012.
Retrieved from: http://www.qimacros.com/