Transcript
Page 1: Lean Six Sigma  An Overview

“Safety is a Measure of Success”

Lean Six Sigma An Overview

Page 2: Lean Six Sigma  An Overview

What is Six Sigma

What is Lean Thinking

Lean Six Sigma and Change

Lean Six Sigma Methodology

Lean Six Sigma Organization

Developing a Charter for Lean Six Sigma Project

Lean Six Sigma Financial Benefits

“Safety is a Measure of Success”

AgendaAgenda

Page 3: Lean Six Sigma  An Overview

• Six Sigma as a metric– A process running at Six

Sigma quality level produces no more than 3.4 defective parts per million opportunities (DPMO).

– The variation in the process is reduced so that it does not produce defects 99.99966% of the time.

• Sigma (σ), a Greek letter, denotes standard deviation. • Six Sigma is a metric that measures the performance of

a process.

What is Six Sigma ? What is Six Sigma ?

“Safety is a Measure of Success”

Page 4: Lean Six Sigma  An Overview

Lower Specification Limit (LSL)

Upper Specification Limit (USL)

# o

f Go

als

Understanding and reducing variationUnderstanding and reducing variation

“Safety is a Measure of Success”

Page 5: Lean Six Sigma  An Overview

6-Sigma99.99966% Good

6-Sigma99.99966% Good

• 20,000 lost articles of mail per hour.

• 5,000 incorrect surgical operations per week.

• Two short or long landings at most major airports each day.

• 200,000 wrong drug prescriptions each year.

• Seven articles lost per hour.

• 1.7 incorrect operations per week.

• One short or long landing every five years.

• 68 wrong drug prescriptions per year.

3.8-Sigma99% Good3.8-Sigma99% Good

.

N

3.4 defects per million

opportunities

Based on U.S. statistics in the 1990s

Why to raise the quality standard ? Why to raise the quality standard ?

“Safety is a Measure of Success”

Page 6: Lean Six Sigma  An Overview

• Lean ideas originally developed in the United States (Ford Motors, 1914) and than widely used by Japanese (Toyota, 1950).

• Lean Thinking is also known as lean, lean production, lean manufacturing, Toyota production system (TPS), Just-in-time (JIT) etc.

• It is a common sense approach. • Lean is focused at eliminating the waste in the processes

that in return increases the speed, improves the quality, and reduces the cost.

What is Lean Thinking ?What is Lean Thinking ?

“Safety is a Measure of Success”

Page 7: Lean Six Sigma  An Overview

8 Wastes

Overproduction WaitingUnwanted Transportation

Over processing

Over InventoryUnwanted Movement

DefectsUnused Employee Creativity

Understanding Wastes

“Safety is a Measure of Success”

Page 8: Lean Six Sigma  An Overview

• Lean Six Sigma is a rigorous, disciplined, and data

driven business process optimization and problem

solving methodology which aims to reduce variability,

eliminate non-value added activities (waste), and reduce

cost.

• Lean Six Sigma is applicable to any process/activity and

it is well-proven methodology worldwide.

• Lean eliminates process wastes.

• Six Sigma reduces process variability and defects.

Lean Six Sigma DefinitionLean Six Sigma Definition

“Safety is a Measure of Success”

Page 9: Lean Six Sigma  An Overview

• In order to develop, sustain, and become competitive, we have to make changes.

• Lean Six Sigma is all about: – Changing the culture of an organization– Changing the processes to meet new customer requirements

and to remove constraints.

“Safety is a Measure of Success”

Lean Six Sigma is a physical transformation of the processes, and it is a transformation of the organizational cultural

Lean Six Sigma and ChangeLean Six Sigma and Change

Page 10: Lean Six Sigma  An Overview

Lea

n S

ix S

igm

a M

eth

od

olo

gy

Characterization

Optimization

Phase 2Measure

Phase 3Analyze

Phase 4Improve

Phase 5Control

Phase 1Define

Practical Problem

Analytical Problem

Analytical Solution

Practical Solution

MeasureDefine ImproveAnalyze Control

Lean Six Sigma MethodologyLean Six Sigma Methodology

DMAIC

“Safety is a Measure of Success”

Page 11: Lean Six Sigma  An Overview

• Define the problem. • Identify the customer(s). • Organize the team and define its roles and responsibilities. • Establish goals and milestones.• Establish the scope of the LSS project. • Define the metrics. • Map the process. • Develop data collection plan.

What is important to customers OR business goals?

COMMUNICATION

Define PhaseDefine Phase

“Safety is a Measure of Success”

Page 12: Lean Six Sigma  An Overview

• Collect data on current process. • Confirm the customer’s needs, and expectation. • Validate measurement system. • Determine input variables (X’s) that may impact

output (Y’s).• Establish baseline measurement of current process.

How is the process performing? How does it look / feel like to the customer? How good is the data?

COMMUNICATION

Measure PhaseMeasure Phase

“Safety is a Measure of Success”

Page 13: Lean Six Sigma  An Overview

• Narrow the focus to specific issues. • Develop a mechanism to analyze data.• Identify what is causing defects, waste and variation.

Characterize the variables (X’s).• Find improvement opportunities.• Based on data analysis, revisit problem statement and

assess the need to further scope the issues.

40E

Graphical Analysis Tools – Box Plot

5 6 7 8 9 10 11 12 13 14

What are the most important causes of process waste, defects & variation?

COMMUNICATION

Analyze PhaseAnalyze Phase

“Safety is a Measure of Success”

Page 14: Lean Six Sigma  An Overview

• Validate hypothesis about the root cause of the problem

• Identify critical variables (X’s)

• Identify alternate solutions

• Determine optimal solution

• Perform cost/benefit analysis

• Design improvements

• Pilot improvements

• Implement and validate improvements

Move the mean. Shrink the variance. Eliminate the waste.

COMMUNICATION

Improve PhaseImprove Phase

“Safety is a Measure of Success”

Page 15: Lean Six Sigma  An Overview

• Ensure corrective actions are taken.

• Mistake-proof the process.

• Transition the control of the new process to the process owner.

• Provide techniques to sustain the improvements.

• Measure the final capability.

• Monitor performance. How can we maintain the process improvements?

7.5

8.5

9.5

10.5

11.5

12.5

0 10 20 30

COMMUNICATION

Control PhaseControl Phase

“Safety is a Measure of Success”

Page 16: Lean Six Sigma  An Overview

•Own the vision, direction, integration, and results. •Identify Black Belts/Green Belts, and help in project identification.

Champions

•Identify and assist in scoping projects.•Own the process.•Ensure changes are sustained.

Process Owners

•Apply Lean Six Sigma to specific projects•Lead and direct teams to execute projects

Black Belts Green Belts

Lean Six Sigma Organization Lean Six Sigma Organization

Roles & Responsibilities

“Safety is a Measure of Success”

Page 17: Lean Six Sigma  An Overview

5 W and 2 H problem identification approach

Who? Identify customers complaining about the problem

What? Define the problem accurately

When? Timing - When did the problem start?

Where? Location - Where is it occurring?

Why? Identify the causes (5 WHYs)

How? In what mode the problem occur

How many? Magnitude or frequency of the problem

Developing the project charter Developing the project charter

Example

Problem Statement: • On-time delivery performance of all ABC units is only 60%. This

results in customer complaints and shipment rejections that in turn increases the inventory levels.

Goal: • Improve on-time delivery to 95% by the end of June 2009.

“Safety is a Measure of Success”

Page 18: Lean Six Sigma  An Overview

• Customer focus, self-motivated and positive personality • Leadership skills • Excellent communication and presentation skills• Project management skills • Process and product knowledge is preferred • Team player • Result oriented • Data mining • Passionate • Patience • Learner

Lean Six Sigma Practitioner QualitiesLean Six Sigma Practitioner Qualities

“Safety is a Measure of Success”

Page 19: Lean Six Sigma  An Overview

• Inadequate management support.

• Inadequate time for Green Belts/ Black Belts and other team

members .

• Project Scope Is Too large

• “Boiling the ocean”

• Project Scope Is Too small

• Projects with little business impact.

• Solution-in-Mind

• “Just Do It” projects do not require the rigors of the LSS DMAIC process.

• Data not available or not valid.

• Lack of “soft skills” (communication, leadership, team building,

and change management).

Common Causes of Project FailuresCommon Causes of Project Failures

“Safety is a Measure of Success”

Page 20: Lean Six Sigma  An Overview

Output Variation in weeks

Existing Process

Process Mean

501 100

Customers Remember the Extremes (Variation), not the Average

Improved Process

Example: Work Order Process Example: Work Order Process

“Safety is a Measure of Success”

Page 21: Lean Six Sigma  An Overview

• From 1986 – 2001, Motorola saved $16 billions.

• From 1996 – 1999, GE saved $4.4 billions.

• From 1998 – 2000, Honeywell saved $ 1.8 billions.

• From 2000 - 2000 Ford saved $1 billion.

• Over the past 20 years Six Sigma saved Fortune 500 companies an estimated $427 billion.

Lean Six Sigma and Financial BenefitsLean Six Sigma and Financial Benefits

“Safety is a Measure of Success”

Page 22: Lean Six Sigma  An Overview

Safety is a Measure of Success

“We are what we repeatedly do. Excellence then, is not an act, but a habit.”

~ Aristotle, 4th century BC Greek philosopher

Thank You


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