Mikel J. Harry, Six Sigma: A Breakthrough Strategy for Profitability, Quality Progress, May,

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1 Proposal Six Sigma Yellow/White Belt Training Six Sigma Green Belt Training Lean Yellow/White Belt Training Lean Green Belt Training Industrial Engineering Courses University IISE Chapters March 6, 2012 Introduction The philosophy of six sigma recognizes that there is a direct correlation between the number of product defects, wasted operating costs, and the level of customer satisfaction. With six sigma, the common measurement index is defects per unit and can include anything from a component, piece of material, or line of code to an administrative form, time frame, or distance. 1 Six sigma emphasizes identifying and avoiding variation. The use of six sigma changes the discussion of quality from one where quality levels are measured in percentages (parts per hundred) to a discussion of parts per million or even parts per billion. 2 The implementation of six sigma is a team process. The top executive and upper management must be part of the six sigma process. Six sigma is a multiyear undertaking that demands an ironclad commitment way beyond lip service from the highest corporate executive. In short, it is not a quick fix. 3 1 Mikel J. Harry, Six Sigma: A Breakthrough Strategy for Profitability, Quality Progress, May, Thomas Pyzdek, The Complete Guide to the CQE, Quality Publishing, Tucson, AZ. 3 CIO Enterprise Magazine, January 15, Phone: (770) Fax: (770)

2 Methodology The six sigma strategy involves a series of steps that are specifically designed to lead the organization through the gauntlet of process improvement. These major steps include the following: 1. Define. Defining the current process including inputs, outputs, customers, suppliers, value added, and key measures or indicators of customer satisfaction. 2. Measure. This involves the identification of critical quality characteristics, documents the existing process, performs necessary measurements, and estimates the process capability. 3. Analyze. The second step allows analysis of performance measures to determine the amount of improvement that might be possible to make the critical quality characteristic best in class. This may involve process redesign. 4. Improve. This phase guides the organization to specific product characteristics that must be improved to achieve the performance and financial goals. Once this is done the characteristics are diagnosed to reveal the major sources of variation. Key process variables are identified by way of statistically designed experiments. Optimum performance levels for each result from the experiments. 5. Implement. After improvements have been developed and appropriate cost justifications performed they must be implemented. This requires project management skills. 6. Control. This phase is for documentation and monitoring of the new process conditions to assure that the implemented improvements are used as intended. Standardization of the methods and procedures is essential. It is also essential that projected benefits be verified. Since organizations are built around people and their knowledge, the success of the six sigma quality improvement strategy depends on individuals who are properly trained. The successful six sigma efforts are led by individuals within the organizations, commonly called black belts, who are expert in the methods and applications of the six sigma tools. 2

3 A lean enterprise views itself as part of an extended value chain, focusing on the elimination of waste between you and your suppliers, and you and your customers. Lean has it origins in the teaching and writings of TQM and JIT, which espouse the idea of delighting the customer through a continuous stream of value adding activities. Specifically, it is an extension of the phrase world class as define by Dr. Richard Schonberger as adhering to the highest standards of business performance as measured by the customer. In other words, value is always defined from the customer s perspective. Understanding your customer s needs is a prerequisite for driving Lean principles and methodologies. A commonly held definition of Lean Enterprise is, a group of individuals, functions, and sometimes legally separate but operationally synchronized organizations. The value stream defines the Lean Enterprise. The objectives of the Lean Enterprise are to: correctly identify and specify value to the ultimate customer / consumer in all its products and services analyze and focus the value stream so that it does everything from product development and production to sales and service in a way that activities that do not create value are removed and actions that do create value proceed in a continuous flow as pulled by the customer. From the time a customer need is recognized until it is satisfied, the process and all its elements must add value for the 'value stream' to be meaningful. The basic components of this Lean system are waste elimination, continuous flow, and customer pull. As defined by John Krafcik, in his book, The Machine that Changed the World Lean production is lean because it uses less of everything compared with mass production: half the human effort in the factory, half the factory space, half the investment in tools, half the engineering hours to develop a new product in half the time. Also, it requires far less than half of the needed inventory on site. The expected results are fewer defects, while producing a greater and ever growing variety of products. 3

4 Lean applies to any organizational type and can be applied to all areas within the business. Essentially, Lean is a three-pronged approach incorporating A Quality Belief, Waste Elimination and Employee Involvement supported by a Structured Management System. Basically, we ve taken simple processes and complicated them resulting in longer lead-times, reduced flexibility, increased inventories and the inability to meet customer demands. Six Sigma Yellow/White Belt General overview is a one day program. Concepts and methodologies are explained and illustrated. This is typically presented in conjunction with a regional conference. Specific topics covered include: Six Sigma philosophy Objective Organization Structure Approach DMAIIC Six Sigma Projects Variation Histograms Basic Statistics Statistical Process Control Six Sigma Green Belt Training General overview or Green Belt training is a three-day program. Concepts and methodologies are explained and illustrated. Participants learn about data collection and the interpretation of the data, specifically as it relates to the processes. Participants must pass an examination to receive the IIE Green Belt Certificate. The examination is given during the afternoon of the last day of training. The three-day class is IIE s basic Six Sigma for Process Improvement course. Specific topics covered include Six Sigma philosophy o Objective o Organization o Structure o Approach DMAIC Six Sigma Projects 4

5 Variation Histograms Basic Statistics Statistical Process Control o Variables o Attributes Process capability Root Cause Analysis o Break even o Flow charts o Pareto analysis o Check sheets o Ishikawa diagrams o Scatter diagrams Lean White/Yellow Belt This class introduces the tools and techniques for implementing lean principles. Participants will gain a broad understanding of the philosophy, methods and benefits of lean and value stream mapping as they apply to all types of enterprises. This is typically presented in conjunction with a regional conference. Specific topics covered include: Introduction Waste 55 Value Added Value Stream Value Stream Mapping Mudha 5

6 Lean Green Belt This three-day course provides an in-depth understanding of lean enterprise principles and how to apply them within your healthcare organization. Your lean journey begins with a series of interactive simulations that demonstrate how each lean concept is applied and its impact on the process. Mapping the process flow and identifying the activities that add value from the customer's perspective is the cornerstone of this class. The class is then given a scenario and the students simulate the conversion from traditional to lean in a practical hands-on environment. The course also provides a structure for how to manage a lean process for continuous improvement within the healthcare environment. Participants will learn how to structure their organizations to support and continuously improve a lean process. Participants will also fully understand how to implement 5S within their plants and how to begin reducing setup time using the SMED process. Topic Highlights: 5S and muda Point of use Pull SMED Value-added Value stream mapping SMED 7 Wastes Visual Workplace What You Will Learn: Upon completion of this course, you will be able to: Create and improve a lean process Implement 5S to develop a safe, clean working environment Map the process flow and identify activities that add value Applying the SMED process 6