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[email protected] Copyright - ISandR Services and Accelper 1 6-Sigma & Lean 101 A Lean-SS overview, not detailed presentation Introduction of Six-Sigma Tools – without stats DMAIC process & tools associated with each phase Introduction of Lean Concepts Identification of Waste Lean Improvements in Gemba (Workplace) Sustainability Business Score Card ISandR Services Presents -

6-Sigma Lean 101

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Page 1: 6-Sigma Lean 101

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6-Sigma & Lean 101

A Lean-SS overview, not detailed presentation Introduction of Six-Sigma Tools – without stats

DMAIC process & tools associated with each phase Introduction of Lean Concepts

Identification of Waste Lean Improvements in Gemba (Workplace)

Sustainability Business Score Card

ISandR Services Presents -

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“When you can measure what you are speaking about, and express it in numbers, you know something about it; but when you cannot measure it, when you cannot express it in numbers, your knowledge is of a meager and unsatisfactory kind….”William Thompson (Lord Kelvin), 1824-1907 “If you can't describe what you are doing as a process, you don't know what you're doing.”W. Edwards Deming, 1900-1993

6-Sigma & Lean 101Process Improvement – “Describe & Measure”

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6-Sigma & Lean 101The Average and the Standard Deviation are Most Important

1)( 2

n

XxS

i

nxX i /)(

These metrics are important, but we will keep this simple

AVERAGE

STANDARD DEVIATION

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6-Sigma & Lean 101Process Improvement – “The Family Vacation” Example Start with the end in mind – THE GOAL Analogy of the family vacation

Would you start with how to pack better? Where, What, Who - Destination, Activities, You &…? DEFINE

Activities, Accommodations, Alt Options, Where is Start Route - how far/long, transport vehicle MEASURE Cost of alternatives ANALYZE What to take - backpacks or suitcase ANALYZE What can be done better from last time IMPROVE

Stick to budget & plan CONTROL

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6-Sigma & Lean 101What is 6-Sigma? A Short History

Improvement tools known for a LONG time Popularized by GE, Motorola, et al Collection of tools with standardize usage! About BEST in class About dramatic improvement – not stats ASQ – “80% of tools are not statistical” Process based on D M A I C

- Define - Measure - Analyze - Improve - Control

Presentation parallels book “Stat Free Six Sigma” – P. Gupta (Accelper)

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6-Sigma & Lean 101What is the Significance of the Words “6-Sigma”?

What does “6-Sigma” imply? Process of 3 defective parts per million (3ppm) Depends on

Customers specified limits (Upper & Lower Bound) Average in the process (Average or Mean) Variability in the process (Standard Deviation)

Not all processes need to be 6-Sigma Capable

A process that meets customer specifications by providing consistent accurate results with no variation - near zero defects

Not all processes need to be 6-Sigma Capable

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Process Capability

CpK = [ Closest Limit – X ] 3

Closest Limit – X

6-Sigma & Lean 101What is 6-Sigma? Statistics Concepts, Without Statistics

Good MeanGood Variability

“Higher ‘sigma’ is better to avoid quality escapes!”

Customer specifies

LL and UL

Low Limit

Hi Limit

Variation = 2

Mean = XExamples

Production – size & location of hole in a part

Service - preparation of tabloid content & distribution, early vs late

1 sigma ()½ width at ½ height

6

Good Capability

Distribution:GaussianRandomNormalError

The ProcessCharacterizing The Process

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6-Sigma & Lean 101What Process Capability?

Good MeanGood Variability

Poor MeanGood Variability

Poor MeanPoor Variability

Good Capability Poor Capability Poor Capability

mean

variation

LL HL

This is previous slide

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6-Sigma & Lean 101What Makes 6-Sigma Work?

When everyone understands the Cost of Poor Quality In / ext failures, inspection, testing, rework (calc $$s)

Align VOC and biz needs for big improvements S M A R T goals

Specific – why, what, when, who, where, finally how Measurable – which metrics: how much / many, B4 & after Attainable – have resources: attitudes, abilities, finances Realistic – challenging believable & achievable Timely* – reasonable duration to complete with urgency

Visible with Executive Management Support Employees encouraged to take risks (Deming, “Drive out fear”)

* Could be “Tangible” – can experience with senses makes it more realistic and measurable

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The energy to overcome an existing culture, make improvements and sustain change takes

Organization A

Organization B

6-Sigma & Lean 101What makes 6-Sigma Work? Culture Change Response Curve

Present Time Future

Effo

rt/C

ost/R

esis

tanc

e

effort, time and money

The paths are different for each organization.

DM

A I

C

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6-Sigma & Lean 101Customer Surveys – Voice Of the Customer (VOC)

Research on customer satisfaction: Determine what is quality [“Q is what the customer says it is”] Find out what competitors are doing [better] Define quality performance measures to identify defects [Pareto] Identify factors to give a competitive edge [SWOT] Identify urgent problems [low hanging fruit 1st with best ROI]

Use multiple instruments to ID customer satisfaction. The opportunity to collect misleading or useless information is possible with just one instrument.

Surveys, Focus Group, Face-to-face, (Dis)satisfaction cards, Competitive Shopping

- to gain information on - Stated Needs, Real Needs, Perceived Needs, Cultural/Unstated

Needs, Unintended Needs (Distinguish: Wants, Needs, Dissatisfiers)

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6-Sigma & Lean 101 Customer Surveys - VOC

Feature/Process Satisfaction

Feat

ure

Impo

rtan

ceCustomer Response to Survey

LO HI

HI

Maintain Good Work & Performance

Maintain Current Status

Over-effort for little value

MUST Improve

Opportunity Being Lost

What was expected and experienced, what was the level of satisfaction and importance

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6-Sigma & Lean 101

How to look for and improve the PROBLEMS

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6-Sigma & Lean 101What is DMAIC?

Define – “the charter”: why do this (ROI / VOC), which process (Pareto), achieve what, measure what (errors, FTT), which resources, who’s involved, how to accomplish (brainstorm / fishbone), what is goal, when complete, what’s not included, …

Measure – specify info sources to measure, precision, frequency of measurement, instruments used to measure, …

Analyze – examine patterns, correlate dependent & independent variables (SIPOC / histograms / scatter-plots), root-cause, failure influence (FMEA-SOD), …

Improve – development of alternatives to reduce cost, variation, & waste or for faster delivery, …

Control – sustaining gains from project and maintaining process control

Define

Measure

Analyze

Improve

Control

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Phase Tools Brief Description

D Project Priority Index PPI = (Benefit/Cost) X (Probability of Success/Time to complete in years)Time < .5Estimated Savings/Cost > 2.0Recommended PPI > 4.0

D Pareto A graphical tool to prioritize various defects to identify the most important one

D Process Map A graphical description of activities and decision points

D Kano's Analysis A graphical tool to identify customer critical requirements, including customers' `love to have' requirements

D SIPOC An excellent tabular capture of most of the process constraints

D CTQ Operational critical-to-quality characteristics related to the customer expectation

D Project Charter Project plan with clearly-defined goals and milestones

M Cost of Quality Breakdown of product or service cost related to appraisal, failures and prevention

M DPU A product measurement, which is a ratio of the number of defects observed per unit verified

M Yield The percent of process output with no error or defect.

A DPMO A process measurement, which is the DPU normalized to the product or process complexity

A Sigma Level A business measurement, estimated from DPMO, commonly used for benchmarking

A Average Typical performance

I Range Range of performance (maximum – minimum)

6-Sigma & Lean 101What are Tools Used with DMAIC?

Define Measure Analyze Improve

“Stat Free Six Sigma”, Gupta

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Phase Tools Brief Description

I Standard Deviation More accurate estimate of performance range

I Statistical Thinking Ability to distinguish assignable causes from random causes of variation

I Root Cause Analysis Fishbone diagram consisting causes that produce effects - materials, machines, methods, man, nature, measurements

I FMEA Failure Mode and Effects Analysis for anticipating problems

I Scatter Plot Graphical display of relationship between output (dependent) and input (independent) variables

I Visual Regression Analysis Estimate of relationship between input and output variables

I Component Search To identify the defective part in an assembly by exchanging the questionable part between 'good' and 'bad' units

I Comparative Tests - Improving Means Evaluating significance of shift or change in the process means

I Comparative Tests - Improving Variance Ratio of variances between the current and reduced variances

I Full Factorial Experiment Evaluating various combinations of multiple variables to determine the right combination for best performance. Total combinations = level to the power variables (Lv, e.g., 23 = 8)

C Process Thinking (4P Model) A logical building block of the process management for achieving excellence. 4P => Prepare 4Ms, Perform Well, Perfect on target, Progress by reducing inconsistencies

C Management Review A review meeting led by the leader to ensure targeted performance is achieved and to identify necessary actions to sustain improved performance

C Control Chart Graphical tool to sustain normal (without known problems) behavior of the process

C Scorecard Measure of business performance for identifying new opportunities

Improve Control

6-Sigma & Lean 101What are Tools Used with DMAIC?

“Stat Free Six Sigma”, Gupta

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6-Sigma & Lean 101Good Charter Components?

Business need - cost reduction, margin increase, government compliance or increased customer satisfaction.

Business advantage – ROI? - case should show the business need as dollars ($$s) to substantiate which project’s selection.

High-level project scope – sponsor’s vision of the project. Critical to success factors – ID project, team, deliverables,

schedule, what is needed for project success: scope, schedule, cost, or quality.

Project constraints, risks and assumptions – document these conjectures; revisit during project to see if these remain true.

Authority of the project manager – what is the responsibility of the project manager, to clarify their role assists with future decisions (controversial?) dealing with the stakeholders and organization.

Signatures – demonstrates management importance & supportExample of form to assist in

addressing items to consider

Constitution

Bill of Rights

Plans Change

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Customer's Order Complaints *

Late 192

Defective 44

Rude CS 37

No call back 23

Wrong Item 72

Incomplete 101

Refund late 17

Wrong Price 15

No Gift Card 3

Missing item 2

Not New - Used 12

Never Received 7

6-Sigma & Lean 101DMAIC Tools – PARETO Ranking of Issues

Minitab

ExcelFigure out cost/benefit

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6-Sigma & Lean 101Process Map (This is the “as is” also need the “proposed”)

Possibilities for improvement?

Loops and Many Crossings

Created with Visio

ORDER FULLFILLMENT SWIMLANE FLOWCHART

WAREHOUSE

ENGINEERING

SHIPPING & RECEIVING

CUSTOMER SERVICE

ACCOUNTING

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6-Sigma & Lean 101What is SIPOC?

Reference DocsLibrary

MagazinesSuggested Adds & DeletesEditors

Educators & Trainers

Training Instructional

Info

Scholarly ReferencesResearchers

ConsultantsExercisesOriginal Written ManuscriptAuthors

LibrariesAlbum of Related workBinders

Web Whit PapersAbstractsElectronic DocsElectronics

Audio booksDVDs & CDsFigs & PhotosGraphics

BookclubsCliffnotesPaper

CustomersOutputsProcessInputsSuppliers

Reference DocsLibrary

MagazinesSuggested Adds & DeletesEditors

Educators & Trainers

Training Instructional

Info

Scholarly ReferencesResearchers

ConsultantsExercisesOriginal Written ManuscriptAuthors

LibrariesAlbum of Related workBinders

Web Whit PapersAbstractsElectronic DocsElectronics

Audio booksDVDs & CDsFigs & PhotosGraphics

BookclubsCliffnotesPaper

CustomersOutputsProcessInputsSuppliers

Shipment of Orders>

Process Distributor Orders

>

First Printing

Promotion

>

Publisher Approval & Printing Schedule

>Editor checks content

>

Graphics submits figures

and photos

>Authors submit content

Process for Publishing and Distribution of Scholarly Research and Textbook Materials

Shipment of Orders>

Process Distributor Orders

>

First Printing

Promotion

>

Publisher Approval & Printing Schedule

>Editor checks content

>

Graphics submits figures

and photos

>Authors submit content

Process for Publishing and Distribution of Scholarly Research and Textbook Materials

Look for relationships so Input improves stability in Output

Suppliers – individuals providing resources

Inputs – info, materials & Services

Process – value added transformation steps

Outputs – final product or service

Customers – entity finding value in output

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6-Sigma & Lean 101What is SWOT?

Internal Characteristics to Business STRENGTH – list and find how to improve these WEAKNESSES – list and find how to minimize these

External Characteristics to Business (in Industry or with the Competition) OPPORTUNITIES – what can you take advantage of THREATS – what should you avoid

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The “cost of quality” isn’t the price of creating a quality product or service. It’s the cost of NOT creating a quality product or service.

Prevention Costs - New product review, Quality planning, Supplier capability surveys, Process capability evaluations, Quality improvement team meetings, Quality improvement projects, Quality education and training, Appraisal Costs

Inspection Costs - measuring, evaluating or auditing products or services to assure conformance to quality standards and performance requirements; Incoming and source inspection/test of purchased material; In-process and final inspection/test; Product, process or service audits; Calibration of measuring and test equipment; Associated supplies and materials; Failure Costs

Internal Failure Costs - Failure costs occurring prior to delivery or shipment of the product, or the furnishing of a service, to the customer. Scrap, Rework, Re-inspection, Re-testing, Material review, Downgrading

External Failure Costs - Failure costs occurring after delivery or shipment of the product -- and during or after furnishing of a service -- to the customer. Processing customer complaints, Customer returns, Warranty claims, Product recalls

6-Sigma & Lean 101Cost of Quality

Prevention Costs

Inspection Costs

Internal Failure Costs

External Failure Costs

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This is a way of analyzing problem and get to the root cause The effect is usually negative - a problem The problem should be specific and clearly stated The ideas are generated by using brainstorming (vocal or silent) Keep the group to asking themselves “what would cause the problem?” Keep attention on the effect of the problem – not criticism or how to fix The goal is to find as many sources for variation as possible that cause the

problem

6-Sigma & Lean 101Brainstorming – Fishbone / Cause-Effect / Ishikawa

Measurements

Methods

PM vs AMTemp

Shift

PreparationSeason Storage

Effect

Machine Man

Mother Nature Materials

RMAs

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Cause of FailureControl for Failure

Potential Failure

Effect of FailureRisk AssessmentProbability of OccurrenceSeverityAbility to Detect

Risk Priority NumberCorrective Actions & Re-evaluation

Part Number & Function

6-Sigma & Lean 101FMEA – Failure Mode Effects Analysis

Determine what can go wrong, the severity, and how to avoid it

QCI – Indiana Quality Council

FMEA Number: This should be a log controlled number for tracking the document

The part number, name, or other descriptionThe design responsibility: Which department or group is responsible for

this design?The person responsible for FMEA preparationThe date the FMEA was prepared and any necessary revision levelThe subsystem or component part number getting detailed analysisThe component functionThe potential failure modeThe potential effect of failureThe potential cause of failureWhat are the current controls in place to prevent the cause from

occurring?O is the probability this failure mode will occur. This index is from 1 to 10

with 1 being virtually no chance and 10 being near certainty of occurrence.

S is the severity of the effect of the failure on the rest of the system if the failure occurs. Values are from 1 to 10. A value of 1 means the user will be unlikely to notice with a 10 meaning that the safety of the user is in jeopardy.

D is a measure of the effectiveness of the current controls to identify the potential weakness or failure prior to release to production. This index ranges from 1 to 10. A value of 1 means this will certainly be caught whereas a value of 10 indicates the design weakness would most certainly make it to final production without detection.

RPN The Risk Priority Number is the product of the indices from the previous three columns. RPN = O•S•D

The actions then are based upon what items either have the highest RPN and/or where the major safety issues are.

There is a column for actions to be taken to reduce the risk, a column for the responsibility and finally a column for the revised RPN once corrective action is implemented.

FMECA provides a disciplined approach for the engineering team to evaluate designs to ensure that all the possible failure modes have been taken into consideration.

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6-Sigma & Lean 101Average, Standard Deviation, Max Value, Min Value in Data Sets

Active Cell

Average Standard Deviation

Maximum Minimum

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6-Sigma & Lean 101Evaluating Data

Quantify what you want to improve and make decisions based on the data.

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6-Sigma & Lean 101Comparative Tests - Improving Means & Variance - Visualization

Data

sample6sample5sample4sample3sample2sample1

2.0

1.8

1.6

1.4

1.2

1.0

6 Samples - Comparison of Means and Variation

Data

sample6sample5sample4sample3sample2sample1

2.0

1.8

1.6

1.4

1.2

1.0

1.457381.52912

1.68022

1.78123

1.47119 1.47366

6 Samples - Comparison of Means and Variation

Same MeanSame Vari(1)

Same MeanSame Vari

Diff MeanSame Vari(2)

Diff MeanSame Vari

Same MeanDiff Vari(3)

Same MeanDiff Vari

Use Methods to Visualize the Data to Make decisions EasierData RangeMeanMiddle 50% of Data

T-test for determining significant difference in Means

F-test for determining significant difference in Variance

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6-Sigma & Lean 101Yield - Efficiency of the Process

100*Pr

Pr%oducedUnits

nitsDefectiveUoducedUnitsYield

%8.94100*50026500%

Yield

%Yield

oducedUnitstsObservedTotalDefecDPUUnitDefectsPer

Pr

106.50053

DPU

DPU

Defect per Million Opportunities (DPMO) - the number of ways a defect can occur. If each item could have 8 ways to fail (label, scratch, color, wrong info, performance,…) then

250,138000,106

8000,000,1*106.0

#000,000,1*

iveanBeDefectofWayUnitC

DPUDPMO

Rolled Throughput Yield (RTY) Yield Process 1 = .9

Yield Process 2 = .9

Yield Process 3 = .9

Yield Process 4 = .9 (.90)x(.90)x(.90)x(.90)= .656

65.6%

Y1 x Y1=0.90

Y2 x Y2=0.90

Y3 x Y3=0.90

Y4 Y4=0.90 Guess

These are formulas with examples from this table. Please

look at these offline.

most familiar for defect eval

What is overall yield in chain of processes?

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6-Sigma & Lean 101 Scatter Plot – Visualize Process Data & Look for Trends

0

5

10

15

20

25

0 5 10 15 20 25

Independent Variable X

Dep

ende

nt V

aria

ble

Y

Y has equivalent response to X and similar variation along response curve

Y has varying response to X and different variation along response curve

What is different about processes?

y=f(x)

x

y

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6-Sigma & Lean 101Control/Run Chart - Variable & Attribute - Track/React to Trends

UCL (3ϭ)

LCL (3ϭ)

Average & Range SPC Chart

17

19

21

23

25

27

29

31

Ave

rage

0

2

4

6

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29

Ran

ge

UCL

You would look into why these extremes happened

AttributeFraction Defective

Number Defective

Number of Defects

Percent Defective

VariableMedian & Range

Average & Range

Average & Std Deviation

Short Run Charts

Continuous

Discrete

Diameter of Hole

P.O. with Errors

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6-Sigma & Lean 101Objectives of Design of Experiments (DOE)

DOE is a systematic approach to determine & optimize the response between process inputs & outputs (independent and dependent variables).

S & H and Delivery Time Part Size

The objective - optimize S&H of different part sizes for best delivery time.

DOE experiments do not change only one variable - variables can interact

Consider the interaction of temperature and wind velocity in the wind chill factor; more wind makes it feel colder and an engine requires the right amount of both gasoline and air to get the maximum performance.

The experiment that changes variables one-at-a-time (OAAT) requires more experiments and cannot evaluate interactions; it is inefficient at best.

PROCESS

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868890929496

P1 P2 T1 T2

6-Sigma & Lean 101Two Factor DOE – Variable Influence

Plot the response.

RESULTP T YieldP1 T1 Y1P1 T2 Y2P2 T1 Y3P2 T2 Y4

INPUT

RESULTP T Yield50 25 9450 75 92

100 25 96100 75 88

INPUT

If you want to know the affects from two factors (i.e. temperature and pressure), then vary both T and P then record the results of the dependent variable (i.e. yield).

Don’t just change one factor at a time.Introduce terms, select levels, run experiment.

Change the pressure between 50 and 100 psi and the temperature between 25 and 75 degrees F; record the yield results.

Calculate the mean yield for each factor level

This experiment is with 2 levels of P & T with a yield result…It could be Internal vs External S&H with big vs small parts and delivery time result

Y@P1 = 93 Y@P2 = 92 Y@T1 = 95 Y@T2 = 90

From the main effects… pressure has lower influence on the yield, while temperature has a larger effect on the yield (more slope, more effect).

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6-Sigma & Lean 101Two Factor DOE – Hi vs Lo Importance

OK. Some of you are saying… Wait a second! When P is changing so is T!? WHAT??????? EXAMPLE - Calculate the effect of P change.

Yield at P1 = (Result Y1) + (Result Y2)Yield at P2 = (Result Y3) + (Result Y4)

Yield at P1 = (P1 + T1) + (P1 + T2)Yield at P2 = (P2 + T1) + (P2 + T2)

Yield at P1 = (P1 + P1 ) + (T1 + T2) Yield at P2 = (P2 + P2 ) + (T2 + T2)

Yield at P1 = 2P1 + (T1 + T2) Yield at P2 = 2P2 + (T1 + T2)

or consider, the difference removes T effect(Yield at P1) - (Yield at P2) = 2P1 - 2P2

RESULTP T YieldP1 T1 Y1P1 T2 Y2P2 T1 Y3P2 T2 Y4

INPUT

RESULTP T Yield50 25 9450 75 92

100 25 96100 75 88

INPUT

REARRAGNING & REASSOCIATING

SIMPLIFYING

GRAPHICAL DEPICTION

SUBSTITUTING VARIABLES PRODUCING THOSE YIELDS

This is what is important!!!!T1 & T2 contribute the same amount to P1 or P2

Y@P1 Y@P2T1+T2 T1+T2

2P12P2

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6-Sigma & Lean 101More Factorial Experiment Designs – 3 & 4 VariablesINPUT OUTPUT INPUT OUTPUT

A B C D Result1 Result2 A B C Result1 Result2

A1 B1 C1 D1 R1 R2 A1 B1 C1 R1 R2

A1 B1 C1 D2 R1 R2 A1 B1 C2 R1 R2

A1 B1 C2 D1 R1 R2 A1 B2 C1 R1 R2

A1 B1 C2 D2 R1 R2 A1 B2 C2 R1 R2

A1 B2 C1 D1 R1 R2 A2 B1 C1 R1 R2

A1 B2 C1 D2 R1 R2 A2 B1 C2 R1 R2

A1 B2 C2 D1 R1 R2 A2 B2 C1 R1 R2

A1 B2 C2 D2 R1 R2 A2 B2 C2 R1 R2

A2 B1 C1 D1 R1 R2

A2 B1 C1 D2 R1 R2

A2 B1 C2 D1 R1 R2

A2 B1 C2 D2 R1 R2

A2 B2 C1 D1 R1 R2

A2 B2 C1 D2 R1 R2

A2 B2 C2 D1 R1 R2

A2 B2 C2 D2 R1 R2

Exercise for later – these are balanced experiments – equal number of each variable (A1, A2, B1, B2, C1, C2…), within all experiments that are also unique with respect to the arrangement of these variables – note: check out the colors.

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6-Sigma & Lean 101Lean

Document the processFind the waste

Make a plan to eliminate the waste

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6-Sigma & Lean 101What Are Key Concepts of Lean?

Get the big picture of the process to Improve Quality Eliminate Waste - ID Value Added vs. Non-Value Added Activities Reduce Lead Time Reduce Total Costs

Give customers what they want, when they want it, for what they want to pay, and without more inve$tment by your company

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6-Sigma & Lean 101 Create a Value Stream Map – Present (Need Future State)item Description

1 ID Customer, Supplier, and Production

2 Customer Requirements per Time Interval

3 Production & Containment Requirements

4 Shipping

5 Delivery

6 Sequence of Processes

7 Data specific to each Sequence

8 Communication Methods

9 Process Attributes: times, Efficiency

10 Operator Symbol - number

11 Inventory & Work in Process (WIP)

12 "Push" vs "Pull" Operations

13 Other Info

14 Working Hours Availability

15 Cycle & Lead Times Example from - www.strategosinc.com

You will probably do this with pencil & paper

4 3

2

1 1

1

5

6

7

8

11

1210

14

14

15

159

This is the value stream process for the entire plant. You can also make a value stream map for a sub-process. Eventually you need to look at the entire process to make sure changes did not shift waste or problems to another process and only created a “local optimum”.

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6-Sigma & Lean 101How to Identify Waste – TIMWOOD or DOWNTIME

TIMWOOD Transportation Inventory Motion Waiting Over-processing Over-production Defects

DOWNTIME Defects Over-production Waiting Not Utilizing Employees* Transportation Inventory Motion Excess processing*skills, ideas, creativity

Look for these forms of waste in the Value Stream Map

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6-Sigma & Lean 101How does 5S Help Eliminate Waste? Makes Waste Visible. 5 S - seiri, seiton, seiso, seiketsu and shitsuke

Sort, separate needed from unneeded items & remove the latter Set-in-Order*/Straighten, arrange items for ease of use Shine/Scrub, means to cleanup Standardize/Systemize, disciplined structured routines Sustain/Self-Discipline, create a new habit

* “6 S” adds Safety (part of Set-in-Order) – make safety equipment easy to use

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6-Sigma & Lean 101Relation of What We Learned wrt Process Improvement

6-Sigma

Lean

Other PI Contributions

There is more

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6-Sigma & Lean 101Other Process Improvement Concepts/Tools

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6-Sigma & Lean 101What is 6-Sigma? Components of Sustained Profitable Growth

Innovation

Good Management

Systems

Business Scorecard

6-Sigma Lean

Creating a culture to sustain & create new improvements

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6-Sigma & Lean 101How to Sustain Progress with Lean & 6-Sigma

Keep employees motivated, customers happy,

processes running smoothly, and the company making money

LEAN is NOT MEAN

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Business Scorecard

Management Provides Vision & Strategy so the Business Can: #1 Take Care of Customers (VOC), #2 Take Care of Employees (Training, Resources, Rewards)

Employees Take Care of Processes (Process Control & Improvement) Processes Take Care of Finances (Efficient Value Added Processes = $$s) Finances Take Care of Stakeholders and Provide $$s for Growth and

Improvements that add value for the customer

6-Sigma & Lean 101What are Components of Sustained Profitable Growth

Customer

Employees

Processes

Financials Vision & Strategy