Introduction to Lean 6 sigma

D.LAPERE - December 2012

AthenaAthena ConsultingConsulting

A short introduction to Lean 6 Sigmaphilosophy and methodology

Designed for Board members and Executives for general knowledge purpose

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ConsultingConsulting

ContinuousImprovement

methods

TQMTotal QualityManagement

AgileManufacturing

TPSToyota Problem

Solving

LeanManufacturing

Toyota

Six SigmaMotorola, GE

Several methods aiming to improve processes continuously

…

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Why combining Six Sigma and Lean Manufacturing?

These are complementary methods and,

moreover, both are customer focused

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σSigma

Statistics / probability:How much deviation

from the average?

Industry / Quality:How far a given process

deviates from perfection?

Sigma?

Firstly used in statistics …Firstly used in statistics …

… … Then transposed to industryThen transposed to industry

But what is perfection ?

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6 Sigma? As perfect as pratically possible

6σ6 Sigma

Defects per Million Opportunities

308 537,0

66 807,0

621,0 233,0

3,4

1

10

100

1 000

10 000

100 000

1 000 000

2 Sigma

3 Sigma

4 Sigma

5 Sigma

6 Sigma

3.4 defects per 1.000.000 opportunities is considered as acceptableand not far from perfection in real life that is to say a 99.9997% quality level

Logarithmic Scale

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Why 6σ and not 5 or 4σ? Example

4σ: Every hour the postal service would lose 20.000 pieces of mail

6σ: Every hour the postal service would lose 7 pieces of mail

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Why 6σ and not 4σ? Example

4σ 22 missed landing dailydaily in main airports!

6σ 22 missed landing every 5 years5 years

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Why 6σ and not 4σ? Example

4σ Poisonous water during 15 min15 min every day6σ 1 min1 min undrinkable water over several months

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Problem solving approach

Data driven method

Continuous improvement6σ

6 Sigma

Measure performance level of a process

Improve the process then benchmark performance indicator

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6σ

Define processes to be improved and set up the related team and goals

Measure main key performance indicators

Analyse defects and related reasons (Root-cause analysis)

Improve by tackling all the issues

Control, monitor and check that goals are achieved

DMAIC

But what defines a process?

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What is a process?

Composed of tasks linked together Triggered by an event Possibly impacted by external factors Involving actors contributing to these tasks Providing a result meeting a customer expectations

A set of tasks aiming to a common goal

People

Material

Energy

Equipm

ent

Procedures

Work activities

RequirementsIdeasTime

Products&

Services

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Outcome only matters

ProcessX YY = f(X)

Dep

artm

ent p

erfo

rman

ce

Dep

artm

ent p

erfo

rman

ce

Dep

artm

ent p

erfo

rman

ce

Dep

artm

ent p

erfo

rman

ce

Dep

artm

ent p

erfo

rman

ce

Process performance

Process performance

What matters for the customer is not departments performance but the overall process performance!

Outcome

Custom

er

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Define

Measure

Analyze

Define the project goals, appoint the team and agree on customer (internal and external) deliverables

Measure and check the current process performances to determine the baseline

Analyze defects, through a root-cause analysis, in order to determine the very reasons of these defects

6σ phases (DMAIC)

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Improve

Control Control future process performance

Improve the process by eliminating defects

6σ phases (DMAIC)

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Some of 6σ keywords

Tools and methods Project management Business Process Mapping Design of Experiment Logical flow chart Chain of value XY Matrix Failure mode effect analysis

Players Executive leadership Champions Master Black Belts Black Belts Green Belts Yellow Belts

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Lean management

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Identify Identify flow of valueflow of value and and

eliminate eliminate wastewaste

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Figure out the flow of value-added activities, i.e. activities a customer would be willing to pay for

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Find out valueless activities,i.e. those that does not add any value in the eyes of the customer

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7 types of waste to be eliminated can be identified (7W’s):7 types of waste to be eliminated can be identified (7W’s):P

eopleP

roduct

Motion Motion

Waiting time Waiting time

OverproductionOverproduction

Processing timeProcessing time

DefectsDefects

Inspection Inspection

TransportationTransportation

Pro

cess

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Lean focuses on flow

Lean focuses on flows and intends to stretch the flow towards

the customer in order to make it as lean, smooth and seamless as possible

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Lean + 6σ

A combination of both Lean and Six Sigma aiming to:

Improve qualityEliminate wasteReduce lead timeReduce total cost

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Lean Six Sigma

Lean speeds up fulfilment by eliminating waste sources, and

thus, improves efficiencyimproves efficiency

Six Sigma focuses on deviations management, solving defects

and, as a result, reducesreduces costscosts and enhancesenhances qualityquality

Profitability, quality, competitive advantageProfitability, quality, competitive advantage

Thanks for your attention

AthenaAthena ConsultingConsulting