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Lean Six Sigma
Approved for Public Release
Lean Six Sigma2
Overview
• What is Lean Six Sigma?
• What can Lean Six Sigma do?
• How to get started
Approved for Public Release
Lean Six Sigma3
Paths to Cost Reduction
• Cut services• Reduce labor (lay-off)• Contract work out • Eliminate product features
• Remove roadblocks so your employees can produce
• Assign resources to bottlenecks
• Maximize internal capabilities• Focus on what the customer
wants to buy
Approved for Public Release
Lean Six Sigma4
What is Lean Six Sigma?Combined 2 industry concepts:• Lean• Six Sigma
Combines problem solving tools:
JIT - PullJIT - Pull
5S5S
Value Value Stream Stream
MappingMapping
VisualVisualMgt.Mgt.
KanbanKanbanANOVAANOVA
KaizenKaizen
Setup Setup ReductionReduction
DFSSDFSS
Root Cause Root Cause AnalysisAnalysis
Hypothesis Hypothesis TestingTesting
DOEDOE MSAMSASPCSPC
Approved for Public Release
Lean Six Sigma5
Lean
• Focus on what is of VALUE to the customer• Separate non-value added from value added
– Map the actions required to produce (value stream)– Eliminate activities that do not move the product
closer to its final form
• Make the remaining value added activities flow smoothly
• Produce only what customers need (pull)• Continuous improvement
Approved for Public Release
Lean Six Sigma6
Which is the better airline ticket?
Ticket A• $500 round trip• 6 hours• 3 layovers• Arriving in NYC
Ticket B• $650 round trip• 3 hours• 1 layover• Arriving in
Groton/New London
Traveling to Groton, CT
What does What does valuevalue mean to you? mean to you?What does What does valuevalue mean to you? mean to you?
Approved for Public Release
Lean Six Sigma7
Lean Philosophy
Value– More to value than just cost– “Defined by the ultimate customer” – Womack
• Voice of the Customer (VOC)
– Expressed in terms of • A specific product• A function or capability
– Questions• What does the customer want to buy?• What would they pay extra for?
Focus on what is of VALUE to the customerFocus on what is of VALUE to the customerFocus on what is of VALUE to the customerFocus on what is of VALUE to the customer
Approved for Public Release
Lean Six Sigma8
Types of ActivitiesValue-Added
– Brings product closer to it’s final form– Changes the form, fit or function – An activity the customer is willing to pay for
Non-Value-Added– Does not contribute to bringing the product to it’s final form– Doesn’t improve the form, fit, or function of the product or service
on the first pass through the process.– An activity the customer is not willing to pay for– Waste
Separate non value added from value addedSeparate non value added from value addedSeparate non value added from value addedSeparate non value added from value added
Approved for Public Release
Lean Six Sigma9
8 Types of Waste
UNDER-UTILIZED SKILLS
Steps are wasteful, people are valuableSteps are wasteful, people are valuableSteps are wasteful, people are valuableSteps are wasteful, people are valuable
Approved for Public Release
Lean Six Sigma10
(2) Tapped holes for lifting
Lean Example
Valve Manufacturing• Objective: Reduce time to produce valves• Solution: Revise process – no temporary attachments
“Feet”
“Legs”Lifting Blocks
Approved for Public Release
Lean Six Sigma11
Lean Example
Certification Package
Not Required
Redundant ReviewMill Test Report
Minimize Rework
Approved for Public Release
Lean Six Sigma12
Batch versus Continuous Flow
ProcessA
ProcessB
ProcessC
10 Minutes10 Minutes
10 Minutes
30+ Minutes for order of 10
Batch & Queue Processing
Continuous Flow
ProcessA
ProcessB
ProcessC
12 Minutes for order of 10
Approved for Public Release
Lean ApproachBatch
Dept 1
Dept 2
Dept 4
OUT
DONE
OUT
OUT
OUT
IN
IN
IN
IN
DONE
IN
4 3
1 2Dept 3
Continuous Flow
Batch processing has a direct impact on the total Work-in-Process
From: NAVSEA VSA Training
Approved for Public Release
Lean Six Sigma14
Value-Added time is typically only a small Value-Added time is typically only a small percentage of the total timepercentage of the total time
Value-Added time is typically only a small Value-Added time is typically only a small percentage of the total timepercentage of the total time
Lean Approach
TimeBroken
ComponentRepaired
Component
WaitTransport
Transport WaitSet-up
= Value Added Time = Non-Value-Added Time (WASTE)
Machine Machine
Disassemble
Start Finish
Re-InstallRemove From
Ship
From: NAVSEA VSA Training
Approved for Public Release
Lean Six Sigma15
Lean Approach From: NAVSEA VSA Training
Date / Reference / Classification
Overtype with Section Title
Total Lead-time = 48 daysValue added time = 315 secs !!!!
Date / Reference / Classification
Overtype with Section Title
-Total Lead time = 48 daysValue added time = 315 secs !!!!
-
Approved for Public Release
Lean Six Sigma16
Lean Approach
Time
Lean Focus• Make all of the Value Stream visible• Reduce or eliminate Non-Value-Added portions
of the process• Result: Large time savings
Traditional Focus
• Improve Value-Added work steps
• Better tools, machines, instructions
• Result: Small time savings
Amount ofTime Eliminated
Time savings have a direct impact on
• Cost • Capacity• Schedule • Flexibility• Resources • Etc.
LARGE amountSmall
of time saved
From: NAVSEA VSA Training
Approved for Public Release
Lean Six Sigma17
Continuous Flow
Traditional Thinking:Batch Production—like a meandering
stream with many stagnant pools, waterfalls, and eddies
Doubling production rate means doubling resources
Continuous Flow Thinking:Pipeline with fast-flowing product –
no stops, piles, or back-upsDoubling production rate means
halving the time waiting
“’“’Flow’ production was an even more valuable innovation of Henry Flow’ production was an even more valuable innovation of Henry Ford’s than his better-known ‘mass’ production model.”Ford’s than his better-known ‘mass’ production model.”
“’“’Flow’ production was an even more valuable innovation of Henry Flow’ production was an even more valuable innovation of Henry Ford’s than his better-known ‘mass’ production model.”Ford’s than his better-known ‘mass’ production model.”
Approved for Public Release
Lean Six Sigma18
How Does Lean Solve Problems?
• Focuses on what is of VALUE to the customer– Understand customer expectations and
requirements– In terms of the what the product provides, not
just the product itself
• Eliminates activities that do not move the product closer to it’s final form– Reduces the 8 types of waste
• Creates continuous flow
Approved for Public Release
Lean Six Sigma19
Six Sigma Philosophy
• Reduce variation
• Y=f(X)
• Making decisions based on data
Approved for Public Release
Lean Six Sigma20
What is “Six Sigma”?Change in quality philosophies
Traditional “Goalpost” Philosophy
USLLSL
LossLoss
$$$$LossLoss
$$$$
Anything outsidethe specification limits
represents quality losses
OK
Taguchi PhilosophyUSLLSL
Any deviation fromthe target causeslosses to society
LossLoss
$$$$LossLoss
$$$$Loss
Approved for Public Release
Lean Six Sigma21
How Does Six Sigma Solve Problems?
Practical ProblemPractical Problem(Define/Measure)(Define/Measure)
Statistical Problem Statistical Problem (Analyze)(Analyze)
Practical SolutionPractical Solution(Control)(Control)
Statistical SolutionStatistical Solution(Improve)(Improve)
Y=f(x) Approved for Public Release
Lean Six Sigma22
Six Sigma Example
• Practical Problem– Pass rate for Technicial Exams was declining
• Statistical Problem– Y=f(X)– Y – Scores– X
• Exam section• Place of training• How often skills are used (experience)• Elapsed time since training
• Statistical Solution– 3 sections of the exam are the highest trouble spots– Experience is the most significant factor in passing
• Practical Solution– Focus training on 3 areas for inexperienced technicians
Approved for Public Release
Lean Six Sigma23
What is “Six Sigma”?99.99966% of values are within specifications
USLLSL
A 6 Process
A 3 ProcessApproved for Public Release
Lean Six Sigma24
Is “Six Sigma” Overkill?
• 20,000 lost articles of mail per hour
• 15 minutes of unsafe drinking water each day
• 5,000 incorrect surgical operations per week
• 2 short or long landings at most major airports each day
• 11 hours of no electricity per month
• 7 lost articles of mail per hour
• 1 minute of unsafe drinking water per 7 months
• 1.7 incorrect surgical operations per week
• 1 short or long landing every 5 years
• 1 hour of no electricity every 34 years
99.99966% (6)99% (≈3.8)
Approved for Public Release
Lean Six Sigma25
Pipe Welding Quality
Reduce concave & convex defects in pipe butt welds
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