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Data driven customer focused problem solving methodologies continuously improving measurable performance issues.
Quality: is defined by the ultimate customer means something different to each person webster.org defines quality as: distinguishing property, characteristic, or attribute; peculiar power, capacity, or virtue; distinctive trait a degree or grade of excellence or worth.. 4
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 World War II TWI (Training Within Industry) Deming & Juran Early Japanese practitioners Quality Circles Total Quality Management Six Sigma Lean
Started in Manufacturing Today practiced in Healthcare Financial services Government Education Distribution Retail Not for profit
A systematic, continuous improvement approach to help drive value to the customer through flow improvement and waste elimination Also known as the Toyota Production System (TPS)
Flow is impacted by overburdened, unreasonable workloads unevenness, inconsistent workloads for workers and machines
Defects, Scrap, Rework Overproduction Waiting Not Fully Utilizing People Transportation Inventory Motion Excess Processing
Customer Satisfaction One Piece Flow, Pull, Just-in-Time Cycle Time = Takt Time Optimize the Value Stream Waste Elimination / Cost Reduction Continuous & Sustained Improvement Built-In Quality Cash Management & Preservation Flexibility & Responsiveness Reliability, Consistency & Predictability Respect for Humanity 12
VSM (Value Stream Mapping) Pull System / Kanban 5S / Visual Management Kaizen SMED / Changeover Reduction TOC (Theory of Constraints) Built in Quality (Jidoka) Total Productive Maintenance
Error Proofing (Poka Yoke) Target Costing Cellular Organization Team Building Cross Training Employee Engagement, Involvement & Development Mutual Trust & Respect
Value Stream Map Team Workshop Version
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Lean Thinking James Womack 1996, 2003 Specify Value Pursue Perfection Identify the Value Stream Customer Pull Flow
The basic idea of lean: identify and eliminate non-valueadding activities from every aspect of the business Lean is making sure the customer gets: what they want, when they want it, with minimum waste
The customer does not pay for waste, only value-added.
Three distinct meanings Statistical measure of performance Data driven systematic problem solving methodology Organizational strategy
317,310 PPM 68.27% 45,500 PPM 95.45% 2,700 PPM 99.73% s s s s s s A normal (bell curved) distribution is 6 standard deviations wide! Most of the data is in the middle (+/- 1 standard deviation).
Sigma s Percent Error Free DPMO Historical Standard Current Standard 3 Sigma 93.32% 66,807 4 Sigma 99.379% 6,210 5 Sigma 99.977% 233 New Standard 6 Sigma 99.9997% 3.4 BPG
Design for Six Sigma DFSS DMAIC Improvement New Process, Product or Service Design Redesign of Existing Processes, Products or Services D M A D V D M A I C
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
BPG A high performance system for executing organizational strategy Aligns strategy to critical improvement efforts Creates a culture focused on customer satisfaction and continuous improvement
Lower Customer Specification Limits (LSL) Process Performance at a Snapshot in Time Upper Customer Specification Limits (USL)
Off-Target Too Much Variation Centered On-Target Center Process Reduce Spread
Understand the customer requirements Reduce process variation Perform the process consistently time after time again while meeting customer expectations
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 Additional resources and planning needed In one word Refine Lean Improvements More easily identified Moderate analysis Low resource and planning needs In one word Streamline
Organizational Roles Executive Leadership 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 Issue/Area
Master Black Belts Mentoring, Coaching, Training Black Belts Six Sigma Project Leaders Green Belts Six Sigma Project Members Yellow Belts SME s and Project Members as Needed White Belts Everyone Else in the Organization
Business Sponsor Process Owner Master Black Belt Team Leader Other Resources (IT, Finance, HR) Project members
Voice of the Customer (VOC) Voice of the Employee (VOE) Voice of the Business (VOB) Voice of the Market (VOM) Champion Team - Projects Vision Mission Align with Corporate Strategy Tactics Goals Metrics
Incremental Breakthrough
Process (Tools) Continuous Improvement Quality & Customer Focus Metrics & Statistical Analysis Kaizen and DMAIC People (Culture) Leadership & Communication Mutual Trust & Respect Team Based Systems & Teamwork Employee Utilization & Engagement Change Management
Customers Organization Employees Suppliers
Lean Six Sigma is a high performance methodology that impacts and improves all organizations, processes, functions and disciplines, including leadership Leadership is CTS, critical to the success of Lean Six Sigma initiatives which are critical to the success of the organization
All surviving and successful organizations in the future will embrace some form of Lean Six Sigma. The early adopters will enjoy the greatest success and capture a greater share of the market.
Leadership makes the decision to start the process and leadership determines the success of a Lean Six Sigma initiative.
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