lean six sigma overview - white belt training

Lean Six Sigma

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Lean Six Sigma Learning Objectives

• Know the origin and aims of Lean, Six Sigma, and Lean Six Sigma

• Understand the roles and responsibilities within a Lean Six Sigma Deployment

• Learn the Lean Six Sigma terms and definitions• Understand many of the tools and methods used in a

Lean Six Sigma project and deployment


Lean Six Sigma WIIFM (What’s In It For Me)

• Get rid of those problems that are taking all of your valuable time! • Management’s ear• An effective communication tool and common ‘language’• A community within the company – your classmates and previous

classes• Further develop group leadership skills• Potential career advancement• Stretch growth – satisfaction!• Personal growth experience• Fun!


Lean Six Sigma

…yah but how will Lean Six Sigma do that for me???

• It is a problem solving methodology to put recurring problems to bed!

• It will facilitates communication between people with different backgrounds and from different functions

• Allows you to leverage and build on what you already know!

• Can be applied in all areas of your life and career

• It is built on standard tools and a standard methodology – helps simplify your discussions!

• Helps drive focus and prevents gaps in logic

• Uses data for sound conclusions

• Focuses on fundamentally solving a problem NOT on adding band-aids and additional complexity

• Requires team involvement and emphasizes sound communication

• Minimizes emotion and conflict and moves to data-driven process-based solutions

• It is visible to higher levels of the company

• It has been proven successful across many industries, solved countless problems and saved billions of dollars

Focus on creating opportunities vs. resource constraints


Lean Six Sigma What Do Our Clients Want?

Lean Six Sigma


Lean History


Lean Six Sigma Origins of Lean

• Lean has been around a long time:• Pioneered by Ford in the early 1900’s (33 hrs from iron ore to finished Model T,

almost zero inventory but also zero flexibility!)• Perfected by Toyota post WWII (multiple models/colours/options, rapid setups,

Kanban, mistake-proofing, almost zero inventory with maximum flexibility!)

• Known by many names:• Toyota Production System• Just-In-Time (JIT)• Continuous Flow

• Outwardly focused on being flexible to meet customer demand, inwardly focused on reducing/eliminating the waste and cost in all processes

• Highly applicable to transactional businesses!

• Whenever flexibility and speed are key: banks, technology firms and customer service organizations the most recent to adopt Lean practices


Lean Six Sigma

The Mathematical Foundation for Lean is Little’s Law

• To reduce Lead time, you have 2 choices:• Invest dollars of capital in people and equipment to increase Avg.

Completion Rate• Invest Intellectual capital to reduce number of “Things In Process” using

Lean Tools (Pull Systems, Setup Reduction, etc) and Six Sigma tools (Variation Reduction)

• Little’s Law: Mathematics of Theory of Constraints (TOC) and Toyota Production System (TPS)

Rate Completion Avg

Process"In Things" No.ofTime Lead Avg


Lean Six Sigma Sources of Waste

1. Transportation (moving items from one place to another)

2. Inventory (items/paperwork/information waiting to be processed)

3. Motion (excess movement and/or poor ergonomics)

4. Waiting (delays caused by shortages, approvals, downtime)

5. Overproduction (producing more than is needed)

6. Overprocessing (adding more “value” than the customer is paying for)

7. Defects (rework, scrap, inspection – Costs of poor quality)

Another waste is: People (untapped and/or misused resources)


Lean Six Sigma

Toyota Production System – Waste Elimination (Applies to Every Process)

“The ability to eliminate waste is developed by giving up the belief that there is ‘no other way’ to perform a given task. It is useless to say, ‘It has to be done that way,’ or ‘This can’t be helped!’

At Toyota, we have found that there is always another way.”

– Study of the Toyota Production System


Lean Six Sigma Lean Defined

• What Lean Is:• An enabler to business strategy• A way to remove waste from processes and practices• Focused on process speed and flexibility • Driven by quick-hit, high-impact team events to solve

problems• A way to visualize processes through value-stream mapping• A way to teach people how to “think” about streamlining

• What Lean Is Not:• A business strategy• Only for manufacturing companies• About headcount reductions• Only about the tools


Lean Six Sigma But Lean Alone Has Holes

• Lacks defined cultural infrastructure • Top leadership engagement

• Deployment organization (Champions, Black Belts, etc.)

• Sometimes lacks focus on customer

• Lacks a consistent methodology

• Most lean efforts lack focus on variation elimination and simply “account for” the variability by carrying excess inventory and resources

• Lean tools do not intrinsically focus on bringing a process under statistical control and maintaining that control allowing for unpleasant surprises

Lean Six Sigma


Six Sigma History


Lean Six Sigma Six Sigma History

• Motorola was the first advocate in the 80’s• Six Sigma Black Belt methodology began in late 80’s/early 90’s• More recently, other companies have embraced Six Sigma:

• GE

• Allied Signal

• Bombardier

• Sony• Project implementers names includes “Black Belts”, “Top Guns”, “Change

Agents”, “Trailblazers”, etc.• Implementers are expected to deliver annual benefits between $500,000

and $1,000,000 through 3-5 projects per year• Top-down program with Executive and Champion support• Outwardly focused on Voice of the Customer, inwardly focused on using

statistical tools on projects that yield high return on investment


Lean Six Sigma Six Sigma History

• Nobody at GE gets promoted without Six Sigma training. • GE annual report examples:

• 10-fold increase in life of CT scanner x-ray tubes• Improved yields of super-abrasives – worth a full decade of

increased capacity despite growing demands• 62% reduction in turn-around time of railcar leasing repairs• Plastics business added 300 million pounds of new capacity –

equivalent to “one free plant”


Lean Six Sigma

How Complex Are Your Products & Services? (% Shippable without Rework)

# of Parts ±3 ±4 ±5 ±6or Steps (Cp=1.00)* (Cp=1.33)* (Cp=1.67)* (Cp=2.00)*

1 93.32% 99.38% 99.98% 99.9997%2 87.08% 98.76% 99.95% 99.9993%3 81.27% 98.15% 99.93% 99.9990%4 75.84% 97.54% 99.91% 99.9986%5 70.77% 96.93% 99.88% 99.9983%

10 50.09% 93.96% 99.77% 99.9966%30 12.56% 82.96% 99.30% 99.9898%50 3.15% 73.24% 98.84% 99.9830%

100 0.10% 53.64% 97.70% 99.9660%300 15.43% 93.26% 99.8980%500 4.44% 89.02% 99.8301%

1,000 0.20% 79.24% 99.6605%3,000 49.75% 98.9849%5,000 31.24% 98.3140%

10,000 9.76% 96.6564%

* Distribution shifted by 1.5


Lean Six Sigma Why 99% Is Not Good Enough

• The “goodness level” of 99% equates to:• 20,000 lost articles of mail per hour

• 5,000 incorrect surgical operations per week

• 200,000 wrong drug prescriptions each year

• No electricity for almost 7 hours per month


Lean Six Sigma Six Sigma Defined

• What Six Sigma Is:• An enabler to business strategy• Places customers at the center of performance improvements• Fact-based approach for improving business processes and solving business

problems• A proven methodology and toolset supported by deep training and mentoring• Focused on reducing variability of processes • A way to develop highly skilled business leaders• A means for creating capacity in organizations

• What Six Sigma Is Not:• A business strategy• A way to develop statisticians and engineers• Only for manufacturing companies• Only about “cost reductions” • A “flavor of the month” approach• An approach that slows decision making and business outcomes


Lean Six Sigma But Six Sigma Alone Has Holes

• Six Sigma lacks many concepts and tools lean is strong in• Set-up reduction• Waste elimination• Mistake Proofing• Cycle-time improvement• Process simplification• Work in process control and reduction

• Six Sigma has long time-lines for projects (4-18 months) compared to Lean (1-4 months)

• Six Sigma specialists (Black Belts) are often less productive than Lean specialists

• Six Sigma Black Belts do 3-5 projects a year• Dedicated Lean project leaders do 10-20 projects a year

• Six Sigma is often seen as being “too slow”

Lean Six Sigma


Lean and Six Sigma Integration


Lean Six Sigma

Why Integrate?

“We knew we wanted to have Six Sigma Tools, that was clear. But we also decided that what really makes change in a factory are some of the Lean tools. Putting in a pull system, reducing batch sizes, significantly changing setup times, all of a sudden

everything starts to flow.

Those are the types of things we saw over time that really made a difference in our factories and so we said that has to

be a part of this training.”

– Lou Guiliano, ITT Industries CEOon integrating lean techniques intoITT’s Six Sigma Rollout

Six Sigma & Lean Integration


Lean Six Sigma Lean and Six Sigma Together

• Goal – Reduce waste and increase process speed

• Focus – Bias for action/ Utilize existing, proven Lean Tools

• Method – Kaizen events, Value Stream Mapping

• Goal – Improve performance on Critical Customer Requirements

• Focus – Use repeatable DMAIC approach for sustained results

• Method – Intense focus on projects, performance improvement a key leadership activity

Six SigmaQuality, Cost +

Explicit Approach

LeanSpeed + Waste + Implicit Approach

X

Lean Six

Sigma

Six Sigma Quality Enables Six Sigma Quality Enables Lean SpeedLean Speed

(Fewer Defects Means(Fewer Defects Means Less Rework)Less Rework)

Lean Speed Enables Lean Speed Enables Six Sigma Quality Six Sigma Quality

(Faster Cycles of (Faster Cycles of Experimentation/Learning)Experimentation/Learning)


Lean Six Sigma

Six Sigma with Lean Is the Integration of Two Powerful Business Improvement Approaches

• Lean• Value stream mapping• Bottleneck identification and

removal• “Pull” from the Customer• Setup and queue reduction• Process flow improvement• Kaizen • Supply Chain Strategy• 5S• S&OP

• Six Sigma• Voice of the Customer (VOC)• Statistical Process Control• Design of Experiment• Error-proofing• Measurement Systems Analysis• Failure Modes Effect Analysis• Cause and Effect Analysis• Hypothesis Testing

Precision + Accuracy + VOC

Speed + Low Cost + Flexibility


Lean Six Sigma

Integrating Lean and Six Sigma Initiatives

• Lean and Six Sigma can co-exist independently, but the benefits of integration are tremendous...

• Single channel for employing limited resources • One improvement strategy for the organization • Highly productive and profitable synergy

…while the pitfalls of not integrating them are formidable

• Divided focus of the organization• Separate and unequal messages for improvement• Destructive competition for resources and projects


Lean Six Sigma Six Sigma and Lean

• Six Sigma is the “Unifying Framework”• Six Sigma provides the improvement infrastructure

• CEO Engagement• Deployment Champions• Green Belts, Black Belts, Master Black Belts

• Over-riding methodology: DMAIC, DMEDI, DMADV

• Lean provides additional tools and approaches to “turbo-charge” improvement efforts

• Tools: Set-up reduction, 5S, Kanban, Waste Reduction• Approaches: Kaizen, Mistake-proofing


Lean Six Sigma

Six Sigma Improves Quality of Value Add StepsSix Sigma Improves Quality of Value Add Steps

Lean Six Sigma Synergy

# of Steps ±3 ±4 ±5 ±6

1 93.32% 99.379% 99.976799.99966%

7 61.63 95.733 99.839 99.9976

10 50.08 93.96 99.768 99.9966

20 25.08 88.29 99.536 99.9932

40 6.29 77.94 99.074 99.9864

Overall Yield vs. Sigma(Distribution Shifted ±1.5)

Source: Six Sigma Research Institute, Motorola University, Motorola, Inc.

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Lean Six Sigma Drives Quality

, Speed and Cost S

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Lean Six Sigma Drives Quality

, Speed and Cost S

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Lean Six Sigma

ImproveImprove

Lean Six Sigma

Improvement Process Road Map

• Review Project Charter • Validate Problem Statement and Goals

• Validate Voice of the Customer & Voice of the Business

• Validate Financial Benefits• Validate High-Level Value Stream Map and Scope

• Create Communication Plan• Select and Launch Team• Develop Project Schedule• Complete Define Gate

• Identify Potential Root Causes

• Reduce List of Potential Root Causes

• Confirm Root Cause to Output Relationship

• Estimate Impact of Root Causes on Key Outputs

• Prioritize Root Causes• Complete Analyze Gate

• Develop Potential Solutions• Evaluate, Select, and Optimize Best Solutions

• Develop ‘To-Be’ Value Stream Map(s)

• Develop and Implement Pilot Solution

• Confirm Attainment of Project Goals

• Develop Full Scale Implementation Plan

• Complete Improve Gate

• Implement Mistake Proofing• Develop SOP’s, Training Plan & Process Controls

• Implement Solution and Ongoing Process Measurements

• Identify Project Replication Opportunities

• Complete Control Gate• Transition Project to Process Owner

• Project Charter• Voice of the Customer and Kano Analysis

• SIPOC Map• Project Valuation / ROIC Analysis Tools

• RACI and Quad Charts• Stakeholder Analysis• Communication Plan• Effective Meeting Tools• Inquiry and Advocacy Skills• Time Lines, Milestones, and Gantt Charting

• Pareto Analysis

• Value Stream Mapping• Value of Speed (Process Cycle Efficiency / Little’s Law)

• Operational Definitions• Data Collection Plan• Statistical Sampling• Measurement System Analysis (MSA)

• Gage R&R• Kappa Studies• Control Charts• Histograms• Normality Test• Process Capability Analysis

• Process Constraint ID and Takt Time Analysis

• Cause & Effect Analysis• FMEA• Hypothesis Tests/Conf. Intervals

• Simple & Multiple Regression• ANOVA• Components of Variation• Conquering Product and Process Complexity

• Queuing Theory

• Replenishment Pull/Kanban• Stocking Strategy• Process Flow Improvement • Process Balancing• Analytical Batch Sizing• Total Productive Maintenance• Design of Experiments (DOE)• Solution Selection Matrix• Piloting and Simulation

• Mistake-Proofing/Zero Defects

• Standard Operating Procedures (SOP’s)

• Process Control Plans• Visual Process Control Tools• Statistical Process Controls (SPC)

• Solution Replication• Project Transition Model• Team Feedback Session

• Value Stream Map for Deeper Understanding and Focus

• Identify Key Input, Process and Output Metrics

• Develop Operational Definitions• Develop Data Collection Plan• Validate Measurement System• Collect Baseline Data• Determine Process Capability• Complete Measure Gate

Tools

Activities

AnalyzeAnalyze ControlControlMeasureMeasureDefineDefine

Kaizen, 5S, NVA Analysis,Generic Pull Systems,

Four Step Rapid Setup Method

Kaizen, 5S, NVA Analysis,Generic Pull Systems,

Four Step Rapid Setup Method

Identify and Implement Quick ImprovementsIdentify and Implement Quick Improvements


Lean Six Sigma Define

• Develop a Project Charter with the Project Focus, Key Metrics, and Project Scope

• Select Team Members and Launch Project

• Identify Stakeholders and develop a communication plan

• Identify the Customers and Capture the “Voice of the Customer” Requirements (typically Quality and/or Speed)

• Identify the Process Owner and Capture the “Voice of the Business” Requirements (typically Cost and/or Speed)

• Develop Critical Customer Requirements (CCR’s) and Critical Business Requirements (CBR’s)

• Finalize Project Focus and Modify Project Charter

• Define Gate Review

= key deliverable


Lean Six Sigma Measure

• Identify Key Input, Process and Output Metrics

• Clearly define Operational Definitions

• Develop a Data Collection Plan

• Validate the Measurement Systems

• Collect Baseline Data

• Determine Process Performance / Capability

• Validate the Business Opportunity

• Identify “Quick Win” Opportunities

• Measure Gate Review

= key deliverable


Lean Six Sigma Analyze

• Brainstorm Key Process Input Variables & Key Process Variables (KPIVs & KPV’s, I.e. Potential Root Causes)

• Prioritize Root Causes

• Conduct Root Cause Analysis

• Validate the Root Causes

• Estimate the Impact of Each Root Cause on the Project’s Performance Output

• Quantify the Opportunity

• Prioritize Root Causes

• Analyze Gate Review

= key deliverable


Lean Six Sigma Improve

• Develop Potential Solutions• Develop Evaluation Criteria & Select Best Solutions• Evaluate the Solutions for Risk• Optimize the Solution• Develop ‘To-Be’ Process Map(s) and High-Level

Implementation Plan• Develop Pilot Plan and Pilot the Solution• Improve Gate Review

= key deliverable


Lean Six Sigma Control

• Institutionalize Process Changes and Controls• Finalize SOP’s, Training Plan & Process Control System• Implement Process Changes and Controls• Stabilize and Begin Monitoring the Process• Transition Project to Process Owner• Identify Project Replication Opportunities• Prove Changes Resulted In Improvement• Calculate Financial Benefits• Control Gate Review

= key deliverable


Lean Six Sigma Author

Steven Bonacorsi is a Senior Master Black Belt instructor and coach. He has trained hundreds of Master Black Belts, Black Belts, Green Belts, and Project Sponsors and Executive Leaders in Lean Six Sigma DMAIC and Design for Lean Six Sigma process improvement methodologies. Steven is a board member for the Boston Chapter of the Industry of Industrial Engineers.

Full Bio: http://www.linkedin.com/in/stevenbonacorsi

Lean Six Sigma White Belt Certification:

• Add Lean Six Sigma White Belt (Basic Awareness) Training and Certification to your Resume or Job Skills.

• Learn topics from one of the original Master Black Belts and world experts on Value Stream Mapping, 5s, Process Capability, Deployment Planning, Roles and Responsibilities, FMEA Risk Analysis, Control Plans and more.

• Certificates will be signed for all who complete the 2 hour training session.


Lean Six Sigma

Learn More about The AIT Group http://www.theaitgroup.com


Lean Six Sigma Who is AIT?

• AIT is a premier provider of Lean, Six Sigma and Supply Chain solutions.

• Solutions are customized to the customer – not one size fits all.

• The company was started in 1998 by three individual that recognized extremely early in the industry how well Lean, Six Sigma and Supply Chain disciplines integrate.

• Our goal is the complete transfer of knowledge via client specific solutions – not training.

• Your instructors from AIT are Certified Master Black Belts and Lean Experts.

• We have worked with many different clients and some of the largest companies in the world.

• We have Offices in the US, Europe, Mexico and China.

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Six Sigma

Supply Chain

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The AIT Group excels in implementation … not recommendation!The AIT Group excels in implementation … not recommendation!

The AIT Group is an international consulting firm that has been specifically designed to help

companies increase profitability by improving overall business

performance and customer satisfaction through the integrated application of:

www.theAITgroup.com

lean six sigma overview - white belt training

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