Lean Six Sigma Maturity Journey
Rick Guba
Executive in Residence
® All Rights reserved
Question:
What do you think of when you
hear the words “Lean Maturity”
Weight loss
program?
Getting
Older?
Transformation
road map?
2
Misconception
• Its not about the tools…
• Its about the continuous
improvement journey.
3
Culture
Transformation
A Lean Six Sigma Maturity Model
Culture Change
Flavor of the month
Proactive
Fire Fighting
DNA of the
Organization
Launch
Benchmark other
Companies
DFSS
IT; Product Dev;
Marketing; HR
Maps, Goals
(Model lines)
Project Roll-up
(Hoshin Strategy)
Full Closed-Loop
(Full VSM linkage)
Excel
Project Tracking
Portfolio Management
Strategy & Portfolio
Management
Scale
Replication
Early Success
Strategy Maturing
Software
Institutionalization
Events
Reporting
Anecdotal
Measured
Standardized
Cross-organization,
Comparisons
Multi-year History
(Best in class)
Financial Impact
Ad hoc
Cost Reduction
Consistency
Validation
General Ledger
Impact
Project Selection
Burning Platform
Low Hanging
Model lines & Value
Stream Focus
Idea Pipeline
Formalized Evaluation
People
Driven Few
(Green Belts)
More Believers
(Black Belts)
Career Development
(Master Black Belts)
Repatriated
(Internal Sensei)
Majority (fully
developed at all
levels)
Training
Champion
External
External, Custom
Internal, eLearning
Internal, Specialty
Leadership
1 or 2 Visionaries
Pockets of Believers
Across Company
(Coaches)
Expected (Mentors)
Ingrained (Trainers)
Adapted from The Six Sigma Maturity Model™ at www.isixsigma.com
4
Exercise:
• In groups discuss where your business in on
the maturity model.
• Define what you see that supports your
analysis.
• Describe what steps you from progressing to
the next Level.
10 min
5
A global provider of engines, systems
and services
Segments
• Commercial
• Military
• Business &
General Aviation
6
GE Aviation
Powering the world’s airline fleets
Every 2 seconds, a GE, CFM,
EA powered airplane is taking
off somewhere in the world
At any given moment, more
than 2,200 of these aircraft are
in-flight, carrying between 50
and 500 passengers
That's more than 300,000
people... right now... who are
depending on our engines
Engine fleet:
25,900
*CFM International is a 50/50 JV between GE and Snecma
EA is a 50/50 JV between GE and PW
7
GE Aviation
Commercial engines
Regional jets
CF34® family
Bombardier CRJ200/700/900 EMBRAER 170/175/190/195
COMAC ARJ21
Boeing 737
Airbus A320
COMAC C919
Boeing 767
Airbus A300/310/330
Boeing 787
Airbus A340-200/-300
Boeing 747
Airbus A380
Boeing 777
EH101
S 92
Saab 340
IPTN CN235
Single Aisle
CFM56* family
Twin Aisle
CF6 family
GEnx
Jumbo
Twin Aisle
CFM56, CF6/GEnx
GP7200**, GE90
Turboshaft &
Turboprop
CT7/T700 family
*CFM, CFM56 and the CFM Logo are trademarks of CFM International, a 50/50 joint company of Snecma and GE
**GE-P&W Engine Alliance is a 50/50 joint venture with Pratt & Whitney
8
GE Aviation
Global Supply Chain
– Over 80 Sites
– Culturally Diverse Workforce
– Broad Spectrum of Processes
Culture
Transformation
A Lean Six Sigma Maturity Model
Culture Change
Flavor of the month
Proactive
Fire Fighting
DNA of the
Organization
Launch
Benchmark other
Companies
DFSS
IT; Product Dev;
Marketing; HR
Maps, Goals
(Model lines)
Project Roll-up
(Hoshin Strategy)
Full Closed-Loop
(Full VSM linkage)
Excel
Project Tracking
Portfolio Management
Strategy & Portfolio
Management
Scale
Replication
Early Success
Strategy Maturing
Software
Institutionalization
Events
Reporting
Anecdotal
Measured
Standardized
Cross-organization,
Comparisons
Multi-year History
(Best in class)
Financial Impact
Ad hoc
Cost Reduction
Consistency
Validation
General Ledger
Impact
Project Selection
Burning Platform
Low Hanging
Model lines & Value
Stream Focus
Idea Pipeline
Formalized Evaluation
People
Driven Few
(Green Belts)
More Believers
(Black Belts)
Career Development
(Master Black Belts)
Repatriated
(Internal Sensei)
Majority (fully
developed at all
levels)
Training
Champion
External
External, Custom
Internal, eLearning
Internal, Specialty
Leadership
1 or 2 Visionaries
Pockets of Believers
Across Company
(Coaches)
Expected (Mentors)
Ingrained (Trainers)
Adapted from The Six Sigma Maturity Model™ at www.isixsigma.com
25 years of Process Thinking
at GE Aviation
2013
2015 GE Production System
Did you Have good day
2014
Simplean
Everybody  Every day  Everywhere
Simplification/Fast Works:
Streamlining, Iterative
• Using Change as a Strategic
2012 Lean Six Sigma 2.0:
and
Simple, Process Thinking, Blended
Competitive Advantage
2011 GE Advantage
Six Sigma, Lean, CAP, WO, DAWO
• Optimizing Change
2005 Lean + Six Sigma + CAP
Effectiveness
Speed & Quality, Transactional Lean
2000 ACFC (At the Customer For the Customer):
• Building a Culture that
Faster, Better, Closer to the Customer
Leads through
1998 Design For Six Sigma (DFSS):
DFR, DFP, Modeling
Effective Change
1996
1995
1992
1991
1989
Six Sigma :
Productivity, Span, Data-Driven Decision-Making
Lean Manufacturing:
TPS, Inventory reduction, Visual Management
Change Acceleration Process (CAP):
Increase success and accelerate change
Process Improvement / Continuous Improvement:
Process-mapping, re-engineering, Bullet Train
Work-Out™ / Town Meetings:
Empowerment, action – Expert-Driven Decision-Making, Action Work-Outs™, Customized Work-Outs™
11
Right Tool at the Right Time
Is the change obvious?
Just do
it
Do we simply need to
implement?
People
(CAP,
Facilitation)
Do we have variation?
Are the Problems'
hidden ?
Six
Sigma
Lean
Does the process
have visible wastes
or X’s identified?
Set of Tools to Help Us Improve Our Processes
12
Aviation Six Sigma
Aviation BB only: Must also complete
1 week Facilitation Skills & CAP course
GB
BB-DMAIC
BB-DFSS
MBB
GB class
BB-DMAIC class
BB-DMAIC class & BBDFSS class
BB-DMAIC class
Test
Corporate GB test
Corporate DMAIC test
Corporate DMAIC &
DFSS tests
Corporate DMAIC test
LDC
N/A
Complete 5 classes
Complete 5 classes
Complete 5 classes
Complete 2 projects
(either 2 DFSS or 1
DFSS & 1 DMAIC)
Complete 2 DMAIC
projects. Both projects
approved by MBB Cert
Board unless
previously approved by
BB Cert Board during
BB tenure.
Training
Personal DMAIC
Projects
(DMAIC projects
may include Six
Sigma and/or Lean
methods)
Participate in or lead a
DMAIC project
Complete 2 DMAIC
projects. Both projects
approved by BB Cert
Board)
Deployment
Strategy
N/A
N/A
N/A
LSS deployment
strategy with evidence
of results. Approved by
MBB Cert Board.
Mentoring Projects
N/A
1 GB project
3 GB projects
10 GB/BB/MBB
projects
Time on Job
N/A
18 months
18 months
18 months
Project approval
BB/MBB
QL/MBB/Cert Board
MBB
QL
Cert Approval
BB/MBB
QL/Business Leader
QL/Business Leader
QL/Business Leader
13
The
Accomplishments
Yes
Si
The Challenges
Oui
Common
Language
Improvements
made
Leadership
Trained
Certification
Focus
Focus on
tracking #
projects
Waiting
for BB
14
Customer feed back
I don’t feel it
15
What is Lean?
“A manufacturing philosophy that shortens
the time line between the customer order
and the shipment by eliminating waste.”
- John Shook
Toyota’s first ( and still
only) American “Kacho”
(manager) in Japan
16
Lean Progression ……
Green Belt
Black Belt / Master Black Belt / Site Lean Leader
Dedicated Lean Leader
17
The
Accomplishments
Identify
Waste
Orbital
Weld
Weld
End Finish
Weld
Flex
Torch
Braze
Mech.
Clean
Mech.
Clean
Mark
Hydro Test
End Finish
The Challenges
Management
Owned
Kaizen
Teams
Changes only
done in events
Flow
Lines
Worked old
ways in new
locations
18
Customer feed back
Better, but….
19
But improvements did not always sustain…
IMPROVEMENT
K
S
K
S
K = Kaizen
K
K
Standardize
S = Stick
Sustain
S
S
K
K
K
K
K
TIME
20
Culture
Transformation
A Lean Six Sigma Maturity Model
Culture Change
Flavor of the month
Proactive
Fire Fighting
DNA of the
Organization
Launch
Benchmark other
Companies
DFSS
IT; Product Dev;
Marketing; HR
Maps, Goals
(Model lines)
Project Roll-up
(Hoshin Strategy)
Full Closed-Loop
(Full VSM linkage)
Excel
Project Tracking
Portfolio Management
Strategy & Portfolio
Management
Scale
Replication
Early Success
Strategy Maturing
Software
Institutionalization
Events
Reporting
Anecdotal
Measured
Standardized
Cross-organization,
Comparisons
Multi-year History
(Best in class)
Financial Impact
Ad hoc
Cost Reduction
Consistency
Validation
General Ledger
Impact
Project Selection
Burning Platform
Low Hanging
Model lines & Value
Stream Focus
Idea Pipeline
Formalized Evaluation
People
Driven Few
(Green Belts)
More Believers
(Black Belts)
Career Development
(Master Black Belts)
Repatriated
(Internal Sensei)
Majority (fully
developed at all
levels)
Training
Champion
External
External, Custom
Internal, eLearning
Internal, Specialty
Leadership
1 or 2 Visionaries
Pockets of Believers
Across Company
(Coaches)
Expected (Mentors)
Ingrained (Trainers)
Adapted from The Six Sigma Maturity Model™ at www.isixsigma.com
21
Sisyphus and his Rock
- Leader Standard Work
D M A I
C
Improve
Pressures
Results
Management Standard Work
Force of
Habit
Transition from “Running the Business”
to “Improving the Business”
GE – Aviation
6/10/2016 Page 22
It starts with Leadership
2016 Supply Chain Priorities
DELIVERY
COST & CASH
QUALITY
PEOPLE
Today & tomorrow
Get the waste out
Right the first time
Working together
• On time for the
customer… period
• Achieve product
cost targets
• Meet LEAP cost
curve
• Improve
inventory, P&E,
and accounts
payable
• Reduce customer
disruptions, MRBs,
and losses
• Improve process
capability
• Grow great teams
• Simplify
• Drive culture of
performance
development and
compliance
Creating the world’s best Supply Chain through
the GE Aviation Production System, Analytics, and Lean
23
Production System
Implementation
Control Center Deployment
January 22, 2015
Imagination at work.
GE Proprietary Information—Class III (Confidential)
Export Controlled—U.S. Government approval is required
prior to export from the U.S., re-export from a third
country, or release to a foreign national wherever located.
Operational Excellence
GE Aviation Production System
Operational
excellence
Create a world class lean
production system roadmap that
exceeds customer &
shareholder needs in safety,
quality, delivery, cost &
inventory.
The standardized infrastructure that integrates our LSS &
Teaming best practices with our processes to design, produce,
distribute and service our products. It’s a roadmap that sites will
use to determine where they are and where they are headed
for the next 5-7 years.
Focus
Fundamentals
(Daily)
Strategic
(Weekly+)
Lean & Cont.
Improvement
GE Aviation Production
System
Quality
Framework
CTQ
Control
Levels
25
GE Aviation Production System
3 Elements
Control
Centers
What we are
focusing on
this event
Measure maturity
of Operations,
Ops
Quality &
Mgmt
Review
Control
Did you have a
good day?
GE
Aviation
Production
System
Layered
Process
Reviews
Site
leadership
engagement
One Company, One Standard, One Process
GE PROPRIETARY INFORMATION | 2015
GE Aviation Production System
26
CCs
Control Centers
GEAP
S
OM
R
Flexibility within a framework
Daily
Cell Control
Center
(CCC)
LPR
Plant leadership on the floor… solving day-to-day problems
“Teaming”
Cell management owned by team … drives
performance and sense of urgency
Focus
Daily
Production
Control Center
(PCC)
“Prioritized
action”
Visual flow of key metrics for safety, quality,
production, problem solving … escalation process
Total plant view … simplified focus on last 24
hours and next 24 hours: manage by exception!
Weekly Plant
Business
Control Center
(BCC)
Information
flowing up and
down org
Driving longer term metric trends & strategies
Weekly review of metrics (QMI), longer term issue
resolution and continuous improvement
GE PROPRIETARY INFORMATION | 2015
GE Aviation Production System
27
Create Control Center Fundamentals
• Physical boards to see, “Did we have a good day?”
• Cell performance: (last shift actual, current shift by hour)
• Plant production: Holistic view (Last 24 hours)
• Response culture when we have problems
•
•
•
•
•
Visual management to highlight problems
Team developed and owned actions
Escalation process
Leadership owned actions
Report back closed-loop
28
CCs
Control Centers
GEAP
S
OM
R
Daily by Shift
Daily
Weekly
Cell Control
Center (CCC)
Production
Control Center
(PCC)
Business
Control Center
(BCC)
Daily metrics &
prioritizing actions
Teaming
LPR
Key Strategic
actions & plans for
the year
Cell #1
Future
#2
#3
#4
How do you know, “Did you have a good day?”
GE PROPRIETARY INFORMATION | 2015
GE Aviation Production System
29
Cell Specific (CCC) Quality and Safety
Red – recordable
Yellow - Injury
Safety
Red = Escape (QEM)
Yellow = On ship hold (evaluating
possible QEM) or open QEM
Green = no hold or QEM
Quality
Cell
Current
month
recordable
Current month
customer felt
escapes
Cell Year
trend
recordable
Year trend
customer felt
escapes
Issues
Issues
Projects
w/ Escalation
tag
Year trend
location of
injuries
History of
location of
quality issues
30
Cell Production
(CCC)
Cell Delinquency
Red = over 1 week delinquent,
Green= less then 1 week
delinquent
Daily Unit
Completion by shift
with Issues Tracker
Red = actual less then plan
Green = meets plan)
Value Stream Map
•Each peg color indicates
start date
•Colored bands indicate
planned cycle (takt time,
day, week,…). Highlights
Std WIP & throughput.
Clear to Start
•
Std WIP
•
Takt Time
•
Output
•
Daily part output and
movement through VSM
for one cell
31
Cell Projects (CCC)
Team
identified pipe
line of
projects or
issues
Projects
started)
Projects in
process
Projects
completed
and being
verified
Projects team
needs to do
something
different or
escalation for
additional
support
Mini A3 Format:
Individual problems are written
up by team and posted. As
project progresses, the cards
are updated and moved to each
folder
32
Plant Safety (PCC)
Top -Standard
Past Month
Crosses
MTD & YTD on
Near Missed, First Aids,
Recordables (Gensuite)
Issues
Current
Month
Cross
Deep dive projects with
PDCA tracking
Site specific X’s
•
•
•
Bottom – Site Creative
Safety walks
5S Audits
Ect
33
Plant Quality (PCC)
Standard
Red = Escape (QEM)
Yellow = On ship hold (evaluating
possible QEM) or open QEM
Green = no hold or QEM
Day an escape was identified
MTD & YTD on Non-conform, Escape,
and Internal escapes
Year trend (by month)
Root cause deep dive projects
PDCA project
tracking
Internal quality focus (site specific/flexible)
•
•
•
Creative
# Non-conformances
Aged NCR/MRB WIP
# MRB
34
Plant Production (PCC)
Daily output
requirement
for cell
Actual output
for cell
Green = Met goal
Red = Under goal
Short term, tactical issues
to be completed within the
week.
Longer term items belong
on Project Board.
PDCA Tracking
Daily summary for 10 cells
35
Plant Delinquency, Input, Output & Inventory (PCC)
Delinquency ($, QMI Definition)
Red = greater then 1 week
Green = less than 1 week
Root cause deep dive projects
PDCA project
tracking
Inventory Input / Output Model
Red = input greater then output
Green = input same as or less then output
CMR
Red = holding up PO
Yellow = holding up assembly
Raw Material Issues
Black Flag= Shortage holding CMR item
Red = Shortage holding up WO Start
Yellow = PO late to stock (charting, pareto,…)
36
Plant Maintenance (PCC)
• Machine Down
• Schedule PMs
• Machine moves
• P&E Activity
• Issues
37
Plant C.I. Projects (PCC): long term
Red = late
Green= achieved daily output
Owner
Date projected
to be complete
Problem
PDCA
Tracking
Plant escalated actions
38
GEAPS Layered Process Review Guide
Control
Centers
Measure maturity
of Operations,
Ops
Quality &
Mgmt
Review
Control
Did you have a
good day?
Foundation of
the GEAPS
GE
Aviation
Production
System
Layered
Process
Reviews
Site
leadership
engagement
One Company, One Standard, One Process
39
CCs
Layered Process Review (LPR)
GEAP
S
OM
R
Purpose:
L a y e r e d P r o c e s s R e v i e w S c h e d u l e - ASCS
FW14
FW15
FW16
FW17
FW18
FW19
FW20
FW21
FW22
FW23
FW24
FW25
FW26
FW27
Plant Leader
A• 1
F• 3
C• 5
F• 7
B• 9
D • 11
A • Multi
E• 2
J• 4
I• 6
A• 8
F • 10
A • Multi
F• 1
Business Leader
B• 2
D• 4
F• 6
H• 8
J • 10
A • Multi
C• 1
E• 3
G• 5
I• 7
B• 9
G • 11
F • Multi
D• 2
Business Leader
C• 3
H• 5
C• 7
H• 9
C • 11
H • Multi
C• 2
H• 4
E• 6
B• 8
C • 10
A • Multi
C• 1
H• 3
Quality Leader
D• 4
I• 6
D• 8
I • 10
D • Multi
I• 1
D• 3
I• 5
D• 7
I• 9
D • 11
I • Multi
D• 2
I• 4
Materials Leader
E• 5
J• 7
E• 9
J • 11
E • Multi
J• 2
E• 4
J• 6
E• 8
J • 10
E • Multi
J• 1
E• 3
J• 5
Engineering Leader
F• 6
A• 8
F • 10
A • Multi
F• 1
A• 3
F• 5
A• 7
F• 9
A • 11
F • Multi
A• 2
F• 4
A• 6
Lean Leader
G• 7
B• 9
G • 11
B • Multi
G• 2
B• 4
G• 6
B• 8
G • 10
B • Multi
G• 1
B• 3
G• 5
B• 7
EHS Leader
H• 8
C • 10
H • Multi
C• 1
H• 3
C• 5
H• 7
C• 9
H • 11
C • Multi
H• 2
C• 4
H• 6
C• 8
Review Type • Area
• Drives Leadership
engagement in
areas not normally
visited
• Measure
performance of
production system
to ensure it is
working
• Ensures Quality
Framework is
working
• Enhances Operator
interaction
LPR
Finance Leader
I• 9
D • 11
I • Multi
D• 2
I• 4
D• 6
I• 8
D • 10
I • Multi
D• 1
I• 3
D• 5
I• 7
D• 9
Sourcing Leader
J • 10
E • Multi
J• 1
E• 3
J• 5
E• 7
J• 9
E • 11
J • Multi
E• 2
J• 4
E• 6
J• 8
E • 10
Vendor Programs
A • 11
F • Multi
A• 2
F• 4
A• 6
F• 8
A • 10
F • Multi
A• 1
F• 3
A• 5
F• 7
A• 9
F • 11
Customer Service B • Multi
G• 1
B• 3
G• 5
B• 7
G• 9
B • 11
G • Multi
B• 2
G• 4
B• 6
G• 8
B • 10
G • Multi
HR Leader C • Multi
H• 2
C• 4
H• 6
C• 8
H • 10
C • Multi
H• 1
C• 3
H• 5
C• 7
H• 9
C • 11
H • Multi
IT Leader
D• 1
I• 3
D• 5
I• 7
D• 9
I • 11
D • Multi
I• 2
D• 4
I• 6
D• 8
I • 10
D • Multi
I• 1
Maintinence Leader
E• 2
J• 4
E• 6
J• 8
E • 10
J • Multi
E• 1
J• 3
E• 5
J• 7
E• 9
J • 11
E • Multi
J• 2
93%
87%
73%
93%
93%
Ontime Completion
G=>90, Y>80, R<70
87%
Red Slash / = reviewnot completed
10
Rweview name
A
B
C
D
E
F
G
H
I
J
Yellow = Review completed late
Deep Dives
Muliti Cell
%
Team
Count 15
Review Types Table
Review Description
Cell Management (Deep Dive)
Plant Management & PCC (Deep Dive)
Mfg Quality (Deep dive)
Quality Framework
QIP Execution
EHS (Deep Dive)
Nonconforming Material (Multi Cell)
Gages (Multi Cell)
Workstation Audit (Deep Dive)
Cell Management (Multi Cell)
%
%
%
%
%
%
%
Green = Review completed on time
Required
Added by
Site
13
Area
1
2
3
4
5
6
7
8
9
10
11
Multi
Multi
Template is available at GEAPS Colab
Review Areas Table
*This list should have an odd number of areas
Description
Turbine Center Frame
Hot Section
Combustors
Tubes & Ducts
Sumps & Seals
Rotating
Chem Room
FPI
Metal Spray
Shot Peen
Central Services
Random (2-5 Cells)
Random (2-5 Cells)
40
CCs
LPR Road Map
Site Quality or Lean leader
• Owns schedule (can use template)
• The SITE owns the Questions
• Some go deep
• Some go wide
• See all areas of plant
• Customize to fit your
organization’s needs
• Tracks % Reviews completed on time
Reviewers
• Site determines list of Reviewers
(should be lead staff at minimum)
• Own completing reviews
• Own updating CCC with findings
Rweview name
A
B
C
D
E
F
G
H
I
Area
1
2
3
4
5
6
7
8
9
10
11
12
Review Description
Cell Management (Deep Dive)
Plant Management & PCC (Deep Dive)
Mfg Quality (Deep dive)
Quality Framework &QIP (Deep Dive) - Monthly
5S Review (Deep Dive)
EHS (Deep Dive)
Nonconforming Material (Multi Cell)
Gages (Multi Cell)
Cell Management (Multi Cell)
GEAP
S
OM
R
LPR
Description
T700 S1 Vane - Innovators
T700 S2 Vane - Synergy
F414 Vane - 414 Vanes
LM Vane - Lminators
Commercial Blade - One Force
Commercial Blade - Elite Fleet
Military Blade - Blade Runners
Comm Vane - AVanegers
Comm Vane - Team Tig/ Radial Grinders
C/S - Hot Zone, F/X Ready to Inspect, Codep
PCC Board
Quality Office
• Own escalating improvement actions
to PCC
• Own immediate action if appropriate
41
Process
• Each leadership team member to complete 1 review per
week, per assignment matrix.
• Reviews should only take 10-15 minutes to complete.
• Action items to be added to CCC or PCC project list by
reviewer as appropriate.
• Review schedule to be posted at PCC and reviewers to mark
off reviews as complete.
(Green out square when complete within week, yellow if late)
• Closure rate to be reviewed Monday at PCC review. (red if
missed)
• Completed reviews to be turned into Lean Leader.
• Lean Leader to analyze and review trends.
42
GE Aviation Production System
3 Elements
Control
Centers
Did you have a
good day?
Production
System Tour
Measure maturity
of Operations,
Ops
Quality &
Mgmt
Review
Control
GE
Aviation
Production
System
Layered
Process
Reviews
Site
leadership
engagement
One Company, One Standard, One Process
GE PROPRIETARY INFORMATION | 2015
GE Aviation Production System
43
Ops Management Review (OMR)
 8 categories
 5 elements per
category
 100 available points
Detailed elements
44
The
Accomplishments
Engagement
Multiple
Base hits
Common way in 87
shops to identify “did
you have a good day”
and get a response
The Challenges
New
behaviors of
leadership
Escalation
Process
Speed of
developing
change
agents
45
Yes it works…
Product Flow Example...Creating a Bucket Cell
Before AWO
Bangor, Energy
Results
•
•
Part Traveled 1713 ft. •
•
After AWO
Part Traveled 133 ft.
87% Lead Time Reduction
98% Internal Set Up Reduction
54% External Set up Reduction
54% Machining Reduction…Free
Capacity
• 92% Part Travel Reduction
46
Yes it works…
Insurance Example…RE Equity Release Process
Before AWO
Supplier
• Estate
• Executor
Customer
• GE Life
• Estate
21d notice
Surveyor
Agents
Results
Solicitor
I
= Inventory
Finance
Completion
Property
Approval
Approval
Agreed
Offer
W
W
W
Access W
Price W
Agreed W
&
and
5
80
10
30
65
Valuation
Agent
Appraisal
30
5 min
40
30
min Delay
min Delay
Delay min Delay (after
(10m/
10d)
(10m/
(10m/
P50 =
P50 = 7d 4wk)
P50 = 2mth
P50 = 10d P50 = 4hr 2wk)
P50 = 2mth P50 = 4hr 2wk)
P50 = 2mth
4hr
7d
2mth
10d
4hr
2mth
4hr
2mth
4hr
Inform
W
GE
P50 = 7d
7d
0s
Reply
Approval
W
2hr
20min
20min
5min
5min
5min
1hr
C/T
5min
P/T
L/T
After AWO
Supplier
• Estate
• Executor
•
•
•
•
•
Simplified Process
Standardized Process
70% Cycle Red (27 to 8 wks)
$15M Cash
$2M Net Income
Customer
• GE Life
• Estate
Surveyor
Agents
Solicitor
Finance
Inform
GE
P50 = 7d
7d
0s
Property
W
Access
&
5
Valuation
Appraisal
Agreed
Price
and
Agent
Approval
Offer
W
Agreed
Approval
W
15
Completion Approval
W
40
30
min
(10
P50 = 7dP50 = 2mth P50 = 10dP50 = 4hr P50 = 2mth P50 = 4hr P50
m/w = 2mth
2d
5d
4hr
1mth
4hr
k) 5wk*
2hr
20min
20min
5min
5min
5min
1hr
P50
=
4hr
4hr
C/T
5min
P/T
L/T
47
Yes it works…
Lean Leadership . . . Sustained Results
Accident Rate
12
Inventory Balance
10.1
16
7.8
8
12
6.5
4.3
3.8
7.9 $
4.8
4
12.0 $ 11.8 $
8
1.8
2.3
6.6 $ 6.0 $
4.7 $
4
1.0
0
3.9 $
4.0 $
2003
2004
Est
0
1997
1996 1997 1998 1999 2000 2001 2002 2003 2004
Est
Cost Improvement
1998
1999
2000
2001
2002
Inventory Turns
20
115
90
65
100 $
18.1
14.3
16
86 $
77 $
70 $
12
65 $
61 $
57 $
55 $
51 $
40
8
10.1
11.8
12.7
7.7
5.1
5.1
1997
1998
4
1996 1997 1998 1999 2000 2001 2002 2003 2004
Est
1999
2000
2001
2002
2003
2004
48
Est
Customer
feed back
I feel it
Team feed
back
We feel it
49
Lean as a foundation
50
Questions
51