Introduction to Lean Six Sigma Heather McCain 1
Agenda for Today Understanding Lean, Six Sigma, and Lean Six Sigma Understanding of what LSS can do for me and my organization Implementing Lean Six Sigma Leadership Lessons 2
Lean Six Sigma Methodology for reducing waste and variation in processes that impact employees, customers, clients, and business leaders. Lean -- reduce waste Six Sigma -- reduce variation 3
History of Six Sigma Developed by Motorola in the 1980s 1985 Bill Smith coined the term 1987 trademarked Became popular in the 1990s due to GE s Jack Welch and AlliedSignal s Larry Bossidy. included a strategic element of business planning focused their initiatives on customer satisfaction and business performance. 4
History of Lean Six Sigma The combination of the methodologies occurred in the late 1990s. Teams often needed to implement Lean concepts to reduce waste before applying Six Sigma concepts to reduce variation. 5
Overview of Lean Six Sigma Lean is used for: Waste reduction Minimizing redundancies Improving work flows Human mistake reduction Six Sigma is used for: Reducing quality issues Reducing variation Solving complex issues Assuring root causes are eliminated 6
What is Lean? Toyota Production System Methodology to improve production systems Goals of Lean Improve Quality Eliminate Waste Reduce Costs 7
5 Principles of Lean Directly observe work as activities, connections and flows Systematic waste elimination Action Create a learning organization Reflection Systematic Problem Solving Establish high agreement of what and how 8
Systematic Waste Elimination What is Waste? Anything beyond the absolute minimum amount of Materials Manpower Machinery needed to add value to a product or service. 9
Seven Muda (Wastes) Defects Waiting Overproduction Inventory Transportation Motion Process waste (including over processing) 8 th added later Underutilizing people Note: some wastes fit in more than one category 10
5S + 1 The methodology for creating and maintaining an organized, clean, and safe work environment to deliver and achieve high performance. Sort (Seiri) Keep only what is required Store / Set (Seiton) Arrange and identify for ease of use, organize Shine (Seiso) Clean regularly. Clean up everything Standardize (Seiketsu) Eliminate causes and reduce variations, make standards obvious Sustain (Shitsuke) Plan, schedule, train, and control Safety 11
What is Six Sigma? A strategy for improving the business. A method of understandingand satisfyingcustomerstrue needs. A set of leadership behaviors that help promote a culture for learning, improvement and success. A method of improvingthe understandingof business processes by: identifying opportunities for cost savings and to realize those savings (dmaic) optimizing a product, process or service prior to launch (DFSS) A way of increasing the profit in your business. 12
What is Six Sigma? Defects per Sigma % Million Level Good Opportunities 3 93.0% 66,807 4 99.4% 6,210 6 99.999% 3.4 1.5 sigma shift 0 σ= 100% Bad C-17 (1,300,000 Holes with Fasteners) Bottle of Pills 100 3 σ = 7 Bad 4 σ = 1 Bad 6 σ = 0 Bad 0 σ = 1,300,000 Missing Fasteners 3 σ = 86,849 Missing Fasteners 4 σ = 8,073 Missing Fasteners 6 σ = 4 Missing Fasteners 13
Opportunities for Improvement Design Process Prevent defects in product development Define (Customer domain) Continuous Improvement Eliminate defects in production Define (Customer domain) Characterize (Engineering domain) Optimize (Robust design) Improve design for manufacturability Improve manufacturing capability Measure (Production domain) Analyze (Problem solving) Verify (Design validation) Improve (Root cause eliminated) Control (process control) 14
DMAIC--Define Define (Customer) Measure (Production) Analyze (Problem solving) Improve (Root cause eliminated) Control (Permanent solution) Identify Customers Internal External end-users, intermediate, impacted Identify Critical to Quality (CTQ) Key Characteristics / Dimensions Critical to customer s perception of quality Measurable Create a high-level Process Map 15
The Customer-Supplier Chain Supplier Inputs Process Outputs Customer SIPOC Supplier Expectations Understand Agree Customer Supplier Expectations Understand Agree Customer Supplier Expectations Understand Agree Customer 16 Heather McCain 11/5/2014
Customer Expectations Dissatisfaction--didn t meet customer expectations Did not understand the expectations Need to address the voice of the customer in the early design cycle Need to understand the wholeproduct/service experience Failed to deliver on the expectations Need to communicate expectations to product/ service providers (manufacturing, suppliers, retailers, ) Need to improve the product, process or service 17
High Level Process Map Key Input Variables Support processes Management processes People Machine/Method Key Output Variables INPUTS What are we trying to make or do? OUTPUTS Product Materials Environment By-Product Think in terms of the product or finished goods or service, not machine, process, etc. 18
DMAIC--Measure Define (Customer) Measure (Production) Analyze (Problem solving) Improve (Root cause eliminated) Control (Permanent solution) Establish and measure inputs (X s) and outputs (Y s) Key input variables (x) Key output variables (y) Plan for Data Collection What varies What to measure How to measure What to look for in the data Validate Measurement System Measurement System Analysis Gage R&R Sampling Producer s/consumer s Risk OC curves 19
Measurement Systems The collection of instruments or gages, standards, operations, methods, fixtures, software, personnel, environment, and assumptions used to quantify a unit of measure. σ 2 Total= σ 2 Process+ σ 2 Measurement Process Measurement Analysis Decision Value 20
Measure Systems Analysis Guidelines for assessing the quality of a measurement system What is measured? Who measures it? What type of equipment is used? How is it measured (manually/automatically)? Where is it measured (environment)? How difficult is the device to use? 21
DMAIC--Analyze Define (Customer) Measure (Production) Analyze (Problem solving) Improve (Root cause eliminated) Control (Permanent solution) Identify sources of variation What can vary What are the vital few x s Screen potential causes What could go wrong What types of problems do we see Test hypothesis If x varies what happens to y 22
Sources of Variation Y=f(X) Y is dependent upon X People Materials Equipment Requirements Support processes Management processes Product Inputs Process Outputs By-product Environment 23
DMAIC--Improve Define (Customer) Measure (Production) Analyze (Problem solving) Improve (Root cause eliminated) Control (Permanent solution) Determine variable relationships Select a solution Confirm and validate improvements 24
DMAIC--Control Define (Customer) Measure (Production) Analyze (Problem solving) Improve (Root cause eliminated) Develop process control and control plans Document process and lessons learned Control (Permanent solution) 25
Lean Six Sigma and Project Management Lean Six Sigma s Evolution, Doug Mader Slide 26 26 PMGT 800 Lesson 2 Summer 2015
Project Management Process Groups Initiating Process Project Charter Stakeholders PlanningProcess Schedule, cost Risk Execution Process Monitoring & Controlling Process Closing Process Define (Customer domain) Measure (Production domain) Analyze (Problem solving) Improve (Root cause eliminated) Control (process control) 27 Heather McCain 11/5/2014
Lean Six Sigma as a Project http://ww.qa-inc.com/leansixsigmasoftware/black_belt_xl/charts.asp 28
What can Lean Six Sigma do for me and my organization? Customers Customer Satisfaction On-time delivery/cycle time reduction Market share Profit Expenses/cost savings Revenue Assets Synergy Team work Strategy alignment Variation Reduction Alignment of Projects 29
Why Six Sigma? Customers Profit Six Sigma is not merely a quality initiative; it is a business initiative. Synergy 30
Implementing Lean Six Sigma Business level Operations level Process level 31
Implementing Lean Six Sigma Leadership Infrastructure Communication / awareness Stakeholder feedback Process feedback Project selection Project deployment Slide 32 32
Project Selection Customer Value Projects Internal customers External customers Shareholder Value Projects Efficiency Revenue / cost Other Projects employee morale regulatory concerns environmental issues 33
Project Selection & Management Brainstorming Sessions Voice of the Customer Exploratory Data Analysis Voice of the Business Potential Projects Voice of the Process Prioritized Projects Future Projects Strategic fit Duplication/rationalization Initial cost/benefit/risk analysis 34
Project Charter Business Area Time Frame Problem Statement Scope and Boundaries Business Needs Link to strategy Objectives (SMART) Simple or specific Measurable Agreed upon or achievable Realistic or results oriented Time related 35
Implementing Lean Six Sigma Impact Determination / Financial Analysis Project Over-site Measurement format Reporting format Project hopper Financial 36
Leadership Lessons / Success Factors Active participation of senior executives Mentors, champions Resources Barrier busters Celebrate early wins Strategy Linkage Focus on results Clear vision Project tracking Work on vital few, not trivial many 37
Leadership Lessons /Success Factors Customer Focus Supplier/Procurement Strategy Technical Support (MBBs) Deployment Plan Full-time versus part-time resources Incentive programs Training 38
Leadership Lessons /Success Factors Communicate, communicate, communicate 39
Lean Six Sigma Can be implemented in small organizations service organizations large manufacturing companies Anywhere you need to reduce waste and variation. 40 Heather McCain 11/5/2014
Lean Six Sigma is NOT: Just for manufacturing Training a few Black Belts to perform miracles in a vacuum Only tools and statistics A one-time or stand along event Zero defects Head count reduction or layoffs EASY 41
Getting Started Determine the level of support in the organization Select key customer and identify core processes Review key measures and customer requirements Select 2-3 projects related to the customer that will impact key measures Train the people involved Track progress Communicate results 42
Resources--Books Brassard, Michael and Diane Ritter, The Memory Jogger II, Goal/QPC Brassard, Michael, and Lynda Finn, Dana Ginn, Diane Ritter, The Six Sigma Memory Jogger II, Goal/QPC Breyfogle, Forrest, Implementing Six Sigma: Smarter Solutions Using Statistical Methods. George, Mike, and Dave Rowlands, Bill Kastle, What is Lean Six Sigma? Harry, Mikel, and Rich Schroeder, Six Sigma: The Breakthrough Management Strategy Revolutionizing the World's Top Corporations. Naumann, Earl, and Steven Hoisington, Customer Centered Six Sigma: Linking Customers, Process Improvement, and Financial Results Pande, Peter S., and Larry Holpp. What is Six Sigma? Pande, Peter S., and Robert P. Neuman, Roland R. Cavanagh, The Six Sigma Way: How GE, Motorola, and Other Top Companies are Honing Their Performance Pyzdek, Thomas, The Six Sigma Handbook, Revised and Expanded : The Complete Guide for Greenbelts, Blackbelts, and Managers at All Levels Quality Management Division, The Executive Guide to Understanding and Implementing Lean Six Sigma Rathand Strong, Rath& Strong's Six Sigma Pocket Guide 43
Resources Websites & Software Websites: www.asq.org/sixsigma www.isixsigma.com www.qualitydigest.com www.isssp.org www.processexcellencenetwork.com Statistical Software: Minitab (www.minitab.com) JMP (www.jmp.com) QI Macros for Excel (www.qimacros.com) Statistica(www.statsoft.com) 44