Process Improvement: Integrating Lean Six Sigma Ergonomics Anand Subramanian, PhD, CPE, CSSBB Email: anands@jfa inc.com Brandy Farris Ware, PhD, CPE, CSSBB Email: bw@jfa inc.com September 22, 2015
Agenda 1. About JFAssociates, Inc. 2. Objectives of this Webinar 3. What is HPI? 4. Case Studies a. Healthcare b. Hospitality c. Manufacturing 5. How does LEAN fits into HPI? 6. How does Six Sigma fit into HPI? 7. How does Ergonomics fit into HPI? Copyright 2015, JFAssociates Inc., All Rights Reserved 2
About JFAssociates, Inc. Established in 2003 Minority owned small business Specializes in providing scientific and engineering consulting services to companies, government agencies, and law firms Industries served include food processing, healthcare, hospitality, manufacturing, retail, and warehouse and distribution Copyright 2015, JFAssociates Inc., All Rights Reserved 3
Introduction JFAssociates capabilities Time & motion study Ergonomics Process improvement Health & safety Other industrial engineering areas JFAssociates approach Quality, Cost Efficient, Practical Solutions Copyright 2015, JFAssociates Inc., All Rights Reserved 4
Objectives of this Webinar At the end of this webinar you should understand: What is Holistic Process Improvement (HPI) Why a Holistic Process Improvement (HPI) approach is important How Lean, Six Sigma, and Ergonomics work together within HPI What some organizations have experienced as a result of HPI (including tools and metric) Copyright 2015, JFAssociates Inc., All Rights Reserved 5
What is HPI? HPI = HOLISTIC PROCESS IMPROVEMENT The term comes from two concepts: Process Improvement Holism Holistic Process Improvement takes a multifaceted approach utilizing many methods to achieve system improvements that are cheaper, faster, safer, and more efficient! Copyright 2015, JFAssociates Inc., All Rights Reserved 6
What is HPI? Copyright 2015, JFAssociates Inc., All Rights Reserved 7
What is HPI? Copyright 2015, JFAssociates Inc., All Rights Reserved 8
Case Study: Healthcare Copyright 2015, JFAssociates Inc., All Rights Reserved 9
Case Study: Healthcare U.S. healthcare costs exceed those of other countries, relative to the size of the economy or GDP. Copyright 2015, JFAssociates Inc., All Rights Reserved 10
Case Study: Healthcare 10000 9000 8000 7000 Growth in Total Health Expenditure Per Capita, U.S. 2000 2013 $ per capita 6000 5000 4000 3000 2000 1000 Growth in Total Health Expenditure Per Capita, U.S. 2000 2013 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Year Copyright 2015, JFAssociates Inc., All Rights Reserved 11
Case Study: Healthcare US Healthcare spending $2.9 trillion in 2013 17.4% of GDP 10 times the $256 billion spent in 1980 Medication errors are estimated to account for at least 7,000 deaths in the United States alone every year Costs to the nation are approximately $37.6 million, with $17 million associated with preventable errors. Institute of Medicine, www.iom.org Copyright 2015, JFAssociates Inc., All Rights Reserved 12
Case Study: Healthcare Our client hired us to look at their surgical unit operations JFAssociates identified the following goals: Remove waste from the processes and hence reduce patient wait time Reduce room turnover times Improving first case start time Improving admissions/registration processes Copyright 2015, JFAssociates Inc., All Rights Reserved 13
Case Study: Healthcare LEAN tools used Value Stream Mapping Gemba 5S Six Sigma tools used Fishbone diagram Pareto Analysis Ergonomics tools used Workstation Evaluations Posture Analysis Job Hazard Analysis Copyright 2015, JFAssociates Inc., All Rights Reserved 14
Case Study: Healthcare Inefficient Registration Process Error in capturing Patient In time Problems locating patient charts Patients scheduled to arrive earlier than required Registration staff not at desk Patient In to OR In Time High Pre Op methods varied Physicians not arriving on time Patient charts are incomplete Pre Op done too early Inefficient Pre Op Process Copyright 2015, JFAssociates Inc., All Rights Reserved 15
Case Study: Healthcare Result of Initial Improvement Implementation Efficient and standardized registration process Improved patient satisfaction Reduced Patient In to Surgery Time Reduced lost work days due to injuries Copyright 2015, JFAssociates Inc., All Rights Reserved 16
Case Study: Healthcare 6 5 4 3 2 3.2 4.1 3.5 4.6 2.9 4.9 Pre Post The staff were asked to rate on a scale of 1 5 the ease and accessibility of supplies, equipment, and workspace before and after the changes were made 1 0 Supplies Equipment Workspace 80.0% 70.0% 60.0% 69.0% 50.0% 40.0% 30.0% 28.1% 31.4% Percentage Improvement 20.0% 10.0% 0.0% Supplies Equipment Workspace Copyright 2015, JFAssociates Inc., All Rights Reserved 17
Case Study: Hospitality Copyright 2015, JFAssociates Inc., All Rights Reserved 18
Case Study: Hospitality Copyright 2015, JFAssociates Inc., All Rights Reserved 19
Case Study: Hospitality The leisure and hospitality experiences fast changing consumer demands Aims to provide a home away from home and relief from daily housekeeping tasks. Consumer s expect luxury. super thick mattresses, plush duvets, and decorative bed skirts, and a variety of pillows (Greenhouse, 2006). Hotels have increased their focus on the bottom line as margins have decreased (Liladrie, 2010). Copyright 2015, JFAssociates Inc., All Rights Reserved 20
Case Study: Hospitality Leisure and hospitality industry provides employment to millions of workers. Approximately 29% of hotel workers are employed in housekeeping departments as maids and housekeeping staff (BLS, 2010). Our client hired us to look at their hotel operations with the primary goal of decreasing costs (especially those related to injuries). Copyright 2015, JFAssociates Inc., All Rights Reserved 21
Case Study: Hospitality LEAN tools used Value Stream Mapping to identify processes SIPOC to identify all contributing factors 5S Six Sigma tools used Fishbone diagram Pareto Analysis Ergonomics tools used Lifting Analysis (NIOSH, etc.) Video Analysis Job Hazard Analysis Copyright 2015, JFAssociates Inc., All Rights Reserved 22
Case Study: Hospitality Results Reduced workers comp costs by 50% (by $1 million) in the first year Reduced workers comp by an additional 50% during the second year Established Work SOPs Decreased cycle times for tasks such as changing duvets and cleaning bathrooms Copyright 2015, JFAssociates Inc., All Rights Reserved 23
Case Study: Manufacturing Copyright 2015, JFAssociates Inc., All Rights Reserved 24
Case Study: Manufacturing Client is leading manufacturer of electrical and pneumatic controls Client was looking to expand business i.e. ramp up production and also introduce new product lines Client approached JFAssociates to help conduct a feasibility analysis Copyright 2015, JFAssociates Inc., All Rights Reserved 25
Case Study: Manufacturing JFAssociates conducted an extensive review of current state of operations Identified concerns based on observations Identified opportunities to improve processes/flow Recommended a Holistic Process Improvement approach to Reduce cost Increase quality Improve delivery Improve safety Copyright 2015, JFAssociates Inc., All Rights Reserved 26
Case Study: Manufacturing LEAN tools used Value Stream Mapping Kanban SMED Gemba Six Sigma tools used Brainstorming SPC Kano Chart Ergonomics tools used Job Evaluation Job Rotation Job Hazard Analysis Copyright 2015, JFAssociates Inc., All Rights Reserved 27
Case Study: Manufacturing Results Established inventory control by improving space utilization ICC savings of $250,000 per year Reduced dock to stock time incoming goods Established KPIs to track key operational parameters Improved cross functional communication Improved workstation layout and design reduced worker injury by 22% Enforced guidelines for ESD safe areas workers comp costs reduced by 15% Developed and enforced guidelines for safety of visitors Copyright 2015, JFAssociates Inc., All Rights Reserved 28
Lean in HPI 80 90% of our time is spent on doing things that increase our costs and create no value for the customer! Lean is an organizational transformation aiming to increase customer value by eliminating waste throughout the process. Lean strives to increase the efficiency of operations by closely examining, finding, and reducing non value added times and eliminating wastes. Copyright 2015, JFAssociates Inc., All Rights Reserved 29
LEAN in HPI Lean identifies waste within a system Lean makes existing processes better Lean includes Total Lead Time WIP Standard Process Time Takt Time Value Added v. Non Value Added Copyright 2015, JFAssociates Inc., All Rights Reserved 30
LEAN in HPI Copyright 2015, JFAssociates Inc., All Rights Reserved 31
Six Sigma in HPI Six Sigma represents a well thought out packaging of quality tools and philosophies in an honest effort to provide rigor and repeatability to quality improvement efforts 6 Sigma = 3.4 defects per million opportunities Six Sigma can be used in all industries. Six Sigma is more cost reduction oriented than traditional continuous improvement Theme: Elimination of Variability Copyright 2015, JFAssociates Inc., All Rights Reserved 32
Six Sigma in HPI Six Sigma identifies inefficiencies within a system Six Sigma makes existing processes by better by reducing variability and eliminating inefficiencies Six Sigma Includes: Copyright 2015, JFAssociates Inc., All Rights Reserved 33
Six Sigma in HPI Copyright 2015, JFAssociates Inc., All Rights Reserved 34
Ergonomics in HPI Ergonomics identifies problems within the human work environment Ergonomics improves process efficiency by matching human capabilities with work demands Ergonomics Includes Proactive Analysis Reactive Analysis Engineering Changes Administrative Changes Copyright 2015, JFAssociates Inc., All Rights Reserved 35
Ergonomics in HPI Copyright 2015, JFAssociates Inc., All Rights Reserved 36
Q&A JFAssociates Inc. Website: www.jfa inc.com Phone: 703.938.2895 Copyright 2015, JFAssociates Inc., All Rights Reserved 37