Housekeeping

Cell Phones and Pagers

Logistics

Interruptions

Attendance

Instructor Contact Information

Student Introductions

2

Name

Organization

Typical or most recent role

Previous exposure to Lean or Six Sigma

Fun or interesting fact about yourself

3

‣ Attendance and active participation -all training sessions

‣ Pass certification exam

‣ In-class and out-of-class project work

‣ Submit and receive approval of completed “simulation” project

‣ Develop and present project using PowerPoint. See PowerPoint template under General Files folder on flash drive.

Certificate of Training Completion will be issued upon successful completion of the training and achievement of a passing grade on the Lean Six Sigma exam.

Certification as an Applied Lean Six Sigma Green Belt or Black Belt will be issued upon successful completion and approval of the Six Sigma Belt project.

6

Completed throughout the week

Approx 5 hours to complete 50 questions

Passing grade of 70% must be achieved for a Certificate of Training and final Green or Black Belt Certification

7

Green or Black Belt Primer (Quality Council of Indiana)

Flash Drive ◦ Slide Presentations

◦ Work Files & Templates

Folder◦ Handouts and Exam

8

Software packages are available to help with the statistical analysis

Commonly used versions are:◦ QI Macros – a Microsoft Office Excel Add-In

◦ Minitab

◦ SAS

◦ MoreSteam software

◦ SPC

◦ SPC for Excel

10

A Microsoft Excel Add-in

Very economical ◦ Single user licensing fee of $329

Compatible with PC or Mac

QI Macros shows up as a tab or ribbon within Excel

Includes graphs, forms, and tools used in Six Sigma and Statistical Process Control (SPC)

11

To be utilized in this class – must have Microsoft Excel installed

Should have been downloaded during completion of your pre-work

www.http://qimacros.com

90 day free trial is available for use

Instructions to download are in pre-work packet

12

Quality:◦ Is defined by the ultimate customer

◦ Means something different to each person and organization

◦ Webster.org defines quality as:

“…a distinguishing property, characteristic, or attribute; peculiar power, capacity, or virtue; distinctive trait…adegree or grade of excellence or worth..”

14

Quality IS Customer Satisfaction - Juran

Quality Management:◦ A method for ensuring that all activities necessary

to design, develop and implement a product or service are effective and efficient with respect to the system and its performance

Middle ages

Industrial revolution (late 1700s and early 1800s)

World War II – TWI (Training Within Industry) (40s)

Deming & Juran

Early Japanese practitioners (50s)

Quality Circles (60s to Early 80s)

Total Quality Management (80s)

Six Sigma (Mid-80s to Today)

Lean (Late 80s to Today)

Data driven

customer focused

problem solving methodologies

continuously improving

measurable performance issues.

Originally started in manufacturing

Today it is practiced in◦ Healthcare

◦ Financial services

◦ Government

◦ Education

◦ IT

◦ Distribution

◦ Retail

◦ Not for profit

◦ Etc.

It has three distinct meanings:

Statistical term and measure of performance

Data driven systematic problem solving methodology

Organizational strategy

Sigma

◦ A Greek letter

◦ A Statistical term denoting variation

◦ Sigma stands for standard deviation for a population

◦ A measure of performance

◦ Describes how a process is performing against customer specifications (sigma level)

Six Sigma◦ Equates to 3.4 defects per million opportunities (DPMO)

◦ 99.9997% defect free yield or near zero defects

A normal (bell curved) distribution is 6 standard

deviations wide! Most of the data is in the middle (+/-

1 standard deviation).

68.27%

95.45%

317,310 PPM

99.73%2,700 PPM

45,500 PPM

Sigma Percent Error

Free

DPMO

Historical

Standard

3 Sigma 93.32% 66,807

Current

Standard

4 Sigma 99.379% 6,210

5 Sigma 99.977% 233

New

Standard

6 Sigma 99.9997% 3.4

BPG

Most Companies

Today(3.15𝝈)

Six Sigma (the methodology)◦ A systematic problem solving methodology

utilizing data

24

• New Process, Product

or Service Design

Design for

Six Sigma

DFSS

• Redesign of Existing

Processes, Products

or Services

DMAIC

Improvement

DMADV

DMAI

C

Note: DFSS is the concept while DMADV is the process

Define

•Define design and process parameters based on functional

requirements

Measure•Measure customer needs and the predicted behavior of a system

Analyze

•Analyze the relationships between causal variables

Design•Design a better way

Verify•Verify the integrity of the design

26

Define

•Define the current problem

•Identify what’s important to the customer

Measure

•Determine what to measure as the Key Process Output Metric (KPOV)

•Quantify current process performance

•Estimate improvement targets

Analyze

•Analyze and statistically validate causes of variation and defects

•Commit to an improvement target for the Key Output metric

Improve

•Identify solutions to counteract major causes identified

•Implement solutions and provide statistical evidence that the solutions work

Control

•Put controls in place to maintain improvements over time

•Provide statistical evidence that the improvement is sustained

•Spread improvements throughout the organization

27

Strategy and roadmap for achieving the peak organizational performance

Driven from the top

Creates a culture focused on customer satisfaction and continuous improvement

BPG

A tool for driving workforce reduction

A substitute for a PMO project

Expensive project without a Return on Investment (ROI)

Long never-ending projects

A quick fix

The objective of Six Sigma is to reduce variation and move product or service outputs permanently inside customer requirements. Six Sigma:

◦ Applies standardized, proven methodology and tools

◦ Follows a reliable, time-bounded improvement process

◦ Unifies the organization with a common and consistent language

◦ Reduces fire fighting, where no long term gains or significant changes are achieved

◦ Defines a set of cross-functional business metrics to measure progress

◦ Delivers documented Financial Results

Lean and Six Sigma

Six Sigma Improvements• Higher level of analysis• Riskier• Additional resources and • planning needed• In one word “Refine”

Lean Improvements• More easily identified• Moderate analysis• Less risky• Low resource and • planning needs• In one word

“Streamline”

Just Do It / Rapid Improvement• Ground fruit• In one word “Simple”

Organizational Roles◦ Executive Leadership

Mission, Vision, Strategy, Champion

◦ Human Resources

Change Management, Team Building

◦ Corporate Director

Planning, Coordination

◦ Project Champion Team

Selection and Monitoring of Projects

◦ Project Teams

Execution of Projects

◦ Process Owner

Manager/Supervisor of Project Area/Issue

Mentoring, Coaching, Training

Six Sigma Project Leaders

Six Sigma Project Members and Small Project Leaders

SME’s / As Needed Project Members

All Remaining Associates

Master

Black

Belt

Black Belt

Green Belt

Yellow Belt

White Belt

Master Black Belt 1:10 ratio of MBB to BB

Black Belt 1% of the organization

Green Belts 20% of the organization

Yellow Belt JIT training

White Belt 100% of the organization

Business Sponsor

Process Owner

Team Leader

Project members

Other Resources

(IT, Finance, HR)Master Black Belt

Model 1

37

Business Sponsor

Process Owner

Team Leader

Project members

Other Resources

(IT, Finance, HR)Black Belt

Master Black Belt

Model 2

38

Business Sponsor

Process Owner

Team Leader

Project members

Other Resources(IT, Finance, HR)

Master Black Belt

Black Belt

Black Belt

Black Belt

Black Belt

Black Belt

Black Belt

Black Belt

Black Belt

Quick Reaction Team

Project Coordinator

VP

Model 3

39

Voice of the Customer

(VOC)

Voice of the Employee

(VOE)

Voice of the Market (VOM)

Voice of the Business

(VOB)

Champion Team - Projects

VisionMission

StrategyTactics

GoalsMetrics

Align with Corporate

External Sources Internal & External Sources Internal Sources

Voice of

Customer

Voice of

Market

Comparison

with

Competitors

Voice of

Process

Areas where Customer

Needs are not being met?

Trends in Market & Industry

that need response?

Counter competitive strategies?

Where are we behind Competition?

Voice of

Employees

Challenges to

meeting Business

Objectives

What are Barriers to

Strategic Objectives?

New Acquisitions

Needing Integration?

Are New Products or

Services being Launched

High Defect Rates?

Obvious Waste?

High Costs & Consumption?

Employee Turnover?

Frustrations?

Problems with Recently

Launched Products ?

No Process Defined?

Constant Process Tweaking

and Fire fighting?

Customer Surveys Market Share Trends

Focus Groups Competitive Studies

Product Returns

Warranty Claims

Benchmark Studies

Trade & Business Articles

Feedback from Sales People

Balanced Scorecard Cost Trends & Structure

Annual Goals & Objectives Inventory Trends

Major Delays CTQ Flow Down

Business Level Metrics vs. Goals

New Acquisition Business Level Metrics

New Product Launch History & Cycle time

Vendor Performance Metrics

Material Balance Studies Employee Surveys

Scrap Reports Employee Turnover Metrics

Yields Trend Graphs Process Maps

Defective Pareto Charts Process Analysis (Non-Value Add Steps)

Cost Trends & Pareto Analysis Downtime Reports

Cycle Time Data (baseline)

Write -offs

42

Discuss as a group for 10 minutes:◦ process improvement or change initiatives that you

have been involved in that were not successful and why, and those that were successful and why.