lean six sigma an overview

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Lean Six Sigma An Overview. Agenda. 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. - PowerPoint PPT Presentation


On the Road Toward Excellence in Reliability

Safety is a Measure of Success

Lean Six Sigma An Overview1The Objective of this Presentation is to provide update on What is Six Sigma What is Lean ThinkingLean Six Sigma and ChangeLean Six Sigma MethodologyLean Six Sigma Organization Developing a Charter for Lean Six Sigma ProjectLean Six Sigma Financial Benefits Safety is a Measure of SuccessAgenda2Six Sigma as a metricA 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 (), a Greek letter, denotes standard deviation. Six Sigma is a metric that measures the performance of a process.What is Six Sigma ? Safety is a Measure of Success3Lower Specification Limit (LSL)Upper Specification Limit (USL)# of GoalsUnderstanding and reducing variationSafety is a Measure of Success6-Sigma99.99966% Good20,000 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% Good

.N3.4 defects per million opportunitiesBased on U.S. statistics in the 1990sWhy to raise the quality standard ? Safety is a Measure of Success5Lean 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 ?Safety is a Measure of Success6Machine that changed the world Lean manufacturing.

8 WastesOverproductionWaitingUnwanted TransportationOver processingOver InventoryUnwanted MovementDefects

Unused Employee CreativityUnderstanding WastesSafety is a Measure of SuccessThere are generally 8 types of waste in organizations

Overproduction of goods..building too much inventoryUnnecessary transports of goodsWaiting by employees for an activity to complete.i.e. waiting for approvalsInventory of goods to compensate for long lead timeDefects in products.. wrong or damaged materialOver processingdoing more than requiredUnused Employee creativityUnnecessary movement of people..from one side of the building to the otherLean 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 DefinitionSafety is a Measure of Success8In order to develop, sustain, and become competitive, we have to make changes.

Lean Six Sigma is all about: Changing the culture of an organizationChanging the processes to meet new customer requirements and to remove constraints.

Safety is a Measure of SuccessLean Six Sigma and Change9Lean Six Sigma MethodologyCharacterizationOptimizationPhase 2Measure Phase 3AnalyzePhase 4ImprovePhase 5ControlPhase 1DefinePractical ProblemAnalytical ProblemAnalytical SolutionPractical SolutionMeasureDefineImproveAnalyzeControlLean Six Sigma MethodologyDMAICSafety is a Measure of SuccessLean Six Sigma uses the DMAIC (Define, Measure, Analyze, Improve, Control) process as a disciplined and methodological approach for problem solving and process improvement

10Define 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? COMMUNICATIONDefine PhaseSafety is a Measure of SuccessThe main goal of the define phase is to define the problem and agree on the objective.In the define phase, we answer the question: What is the scope of the problemCollect data on current process. Confirm the customers needs, and expectation. Validate measurement system. Determine input variables (Xs) that may impact output (Ys).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?

COMMUNICATIONMeasure PhaseSafety is a Measure of SuccessIn the measure phase, we answer the question: What is the frequency of defectsNarrow the focus to specific issues. Develop a mechanism to analyze data.Identify what is causing defects, waste and variation. Characterize the variables (Xs).Find improvement opportunities.Based on data analysis, revisit problem statement and assess the need to further scope the issues.

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

COMMUNICATIONAnalyze PhaseSafety is a Measure of SuccessIn the analyze phase we identify the few key factors which are directly influencing the problem

In the analyze phase, we answer the question: Where and why do defects occur?

Validate hypothesis about the root cause of the problem

Identify critical variables (Xs)

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. COMMUNICATIONImprove PhaseSafety is a Measure of SuccessIn the improve phase, we answer the question: How can we fix the problem

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?

COMMUNICATIONControl PhaseSafety is a Measure of SuccessIn the control phase we Determine long term control measures which will ensure that improvements are sustained.

In the control phase, we answer the question: How can we make the process stay fixedLean Six Sigma Organization Roles & ResponsibilitiesSafety is a Measure of Success165 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 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 Success17Customer focus, self-motivated and positive personality Leadership skills Excellent communication and presentation skillsProject management skills Process and product knowledge is preferred Team player Result oriented Data mining Passionate Patience Learner Lean Six Sigma Practitioner QualitiesSafety is a Measure of Success18Inadequate management support.Inadequate time for Green Belts/ Black Belts and other team members .Project Scope Is Too largeBoiling the oceanProject Scope Is Too smallProjects 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 FailuresSafety is a Measure of SuccessOutput Variation in weeksExisting ProcessProcess Mean501100Customers Remember the Extremes (Variation), not the Average

Improved ProcessExample: Work Order Process Safety is a Measure of SuccessAverage tells little about customer experience.

To drive dramatic improvements in performance, the variance in a process must first be minimized

Customers Remember the Extremes (Variation), not the Average

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 BenefitsSafety is a Measure of Success21Safety is a Measure of SuccessWe are what we repeatedly do. Excellence then, is not an act, but a habit.

~ Aristotle, 4th century BC Greek philosopher Thank YouReliability is Everyone's Business and its Improvement is a Continuous Journey