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Lean Six Sigma at Alliant Energy. Larry Heckert LSS Master Black Belt. Agenda. Alliant Energy’s Journey Six Sigma Overview The Move to Lean Lean/Lean Culture. Alliant Energy – Who We Are. We are an energy-services provider. Our customers… Interstate Power and Light (IPL)

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Lean six sigma at alliant energy

Lean Six Sigma at Alliant Energy

Larry Heckert

LSS Master Black Belt


Agenda
Agenda

  • Alliant Energy’s Journey

  • Six Sigma Overview

  • The Move to Lean

  • Lean/Lean Culture


Alliant energy who we are
Alliant Energy – Who We Are

We are an energy-services provider.

Our customers…

Interstate Power and Light (IPL)

  • 527,000 electric

  • 234,000 natural gas

    Wisconsin Power and Light (WPL)

  • 457,000 electric

  • 179,000 natural gas



Lean six sigma timeline
Lean Six Sigma Timeline

LSS Approval

(Six Sigma emphasis)

Lean Emphasis

approval

2011

2010

2004

2005

2006

2007

2008

2009

2003

LSS Basics

for all employees

Black Belt Wave 1

Lean curriculum

Training internal

Green Belt Wave 1

Full-Time

Black Belts &

Decentralization



Six sigma basics
Six Sigma Basics

  • Many factors cause the output of a process to vary

    • Inconsistent results

    • Output may not meet customer’s requirements (defects)

  • Using Six Sigma, sources of variation are:

    –Identified

    • Quantified

      – Eliminated or Controlled


Six sigma basics1

Inputs

Processes have many inputs

Inputs influence the output in different ways

To improve a process, we need to understand the relationship between inputs and the output

Improving key inputs has the greatest impact on our output

Six Sigma Basics

X1

Output

Process

Y = f(x)

Y

X2

X3


Dmaic methodology
DMAIC Methodology

Define

What’s the problem?

How does the process work today?

Characterization

Measure

Can I trust my data?

What are the potential Key Process Input Variables (KPIVs)?

Analyze

How do we know we have found the most important input variables?

Delivering

Results

Improve

How can we improve the key inputs?

Optimization

Control

Ensure it stays fixed.

How can we control the key inputs?


Shift to a lean emphasis
Shift to a Lean Emphasis

Our Six Sigma Experience

  • Application - Reduce variation or finding root causes

  • Projects typically 6 months or longer

  • Relies on data/technology for certain analyses

  • Limited impact on “the way we work”

    Lean

  • Easily applied to any process

  • Continuous improvement focus

  • Low-tech, hands-on approach

  • Focus on immediate or short-term improvements


Lean

  • A philosophy that emphasizes

  • Reduction of wasteful activities,

  • Getting products or services to flow, and involving

  • Continuous improvement, made by

  • The people who do the work, using

  • Experimentation

Let’s consider an example



Lean principle precisely specify the value of a specific process as defined by the customer
Lean Principle – Precisely specify the value of a specific process as defined by the customer

Each activity or task in a process is identified as:

  • Value-Added

    • Transforms the deliverables of a process in such a way that the customer is willing to pay for it

    • Done right the first time

  • Waste

    • Uses resources but doesn't contribute to the product or service

    • Customer wouldn’t want to pay for it (or wouldn’t if they knew about it)

    • Note: Some waste may be required (regulatory, legal, etc.)

Goal = Eliminate or reduce the waste!


Customer defined value

Critical To Satisfaction

Safety

Delivery

Quality

Cost

Customer-Defined Value

  • First step of a Lean effort is to define the “voice of the customer” in meaningful and measurable terms

A critical mistake is assuming we know what the customer wants!



Lean Principle – Identify the Value Stream for each process and challenge all of the steps that do not add value (waste)

  • Value assumes you are creating something of value that a customer is willing to pay for

  • Stream refers to a sequential flow of activities needed to create an output and deliver it to the customer

  • Value Streams identify all of the steps currently required to move products or services from beginning to end




Lean tools to address opportunities
Lean Tools to Address Opportunities

  • Value Stream Map identifies opportunities

    • Quick Hits (Just do it!)

    • Focused Lean Events

      • RI Event

      • 5S (Workplace Organization)

      • 2P – Process Preparation

    • Six Sigma Project (Variation)

Bursts become opportunities


Lean building blocks
Lean Building Blocks

Continuous Improvement

Pull/Kanban

Cellular/Flow

TPM

Quality at Source

POUS

Setup Reduction

Standardized Work

Batch Reduction

Teams

Value

Stream

Mapping

5S System

Visual

Facility Layout


What does a lean culture look like
What does a Lean Culture look like?

  • Knowing what it looks like allows us to move our culture in the right direction

  • Four basic concepts:

Every activity is structured

Every customer-supplier is clearly connected

Every flow path is simple and specific

We improve through experimentation



Lean thinking
Lean Thinking

Get rid of old, traditional concepts and assumptions

Accept no excuses - Look for ways to make things happen

Say “No” to status quo and assume new methods will work

Don’t expect or worry about perfection, but look to continuously improve – starting now

The primary cost of Lean events is effort – not capital

If something is wrong, fix it on the spot

Empower everyone to think of ways to solve problems. Good ideas come when the going gets tough.

Before making decisions, ask “Why” five times to get to the root cause

Look for wisdom from 10 people rather than one

Improvement has no limits. Never stop trying to improve.


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Lean Six Sigma at Alliant Energy


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