Forward Thinking

Lean 6 Sigma

Forward ThinkingLean 6 Sigma

1. LEAN Summary

2. Six Sigma Summary

3. Why a Combination of Both (LSS)

4. LEAN Six Sigma Improvement Process

5. Design for LEAN Six Sigma (DFLSS)

6. Case Study: Toyota

7. Key Takeaways

Agenda

1.Lean Summary

Re-Think

Fast Times Call For Quick Solutions

LEAN Summary

• LEAN Involves• Speed• Efficiency

– Continuous Flow of Products/Services to the Rhythm of the Customer’s Requirements (TAKT time)

• Identification and Removal of Waste– The Utilization of Standard Work to Enable Error-

Proof Lean Processes that maximize value

Time

Lean Enterprise Principles

1. Specify value in the eyes of the customer2. Identify the value stream and eliminate waste3. Make value flow at the pull of the customer4. Involve and empower employees5. Continuously improve in pursuit of perfection

CONTROL MEASURE

ANALYZEIMPROVE

2. 6 Sigma Summary

Re- Think Waste

Six Sigma Summary

• Reduce Variation• Increase Quality• Statistical Process Control

– If you cannot express what you know in numbers, you don’t know much about it;

– If you don’t know much about it, then you can’t control it;

– If you can’t control it, you are at the mercy of chance!

-Dr. Mikel Harry-Motorola

Six Sigma Summary

• Quantitative Meaning

– Strategy for driving data driven decision making focused on reducing defects, cycle time, and cost at all levels of an organization.

– Process that generates less than 3.4 defects per million opportunities over time

• Cultural Meaning

– Learning to be nearly flawless in designing and executing key processes

– Achieving customer satisfaction through “the relentless and ruthless elimination of variation”

• Benchmark

– In many industries, 6σ capability is accepted as world class quality

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LSLUSLlevel

Sigma Level vs. Yield1 = 68%

3 = 99.73%4 = 99.9936%

6 = 99.9999998%

Lean + 6 Sigma

Why a Combination of both (LSS)

• Lean Processing Drives to Enhance Work Flow

• Processing strategy that focuses on driving waste from the system

• Characteristics: customer focus, cycle time reduction, waste minimization, cost reduction

• Virtually any business activity can be characterized as a process to which Lean methods can be applied

• Many business inefficiencies are obvious, which makes quick wins possible

• Leverages the expertise and knowledge of process owners and subject matter experts which enforces ownership of solutions

• Six Sigma Drives to Reduce Variation

• Management philosophy and rigorous, data driven process improvement methodology

• Characteristics: variability elimination, defect reduction, process optimization

• Disciplined approach for problem definition and root cause identification

• Emphasis on setting the problem scope, data integrity and “iterative fine tuning” of process drivers

• Even greater leverage of the expertise and knowledge of process owners and subject matter experts from a quantitative perspective

Lean and Six Sigma Have Complimentary Philosophies• Six Sigma can bring a process under statistical control and drive defects out of the process

• Lean can dramatically improve transaction time and reduce associated waste

Why a Combination of Both

LEANLEAN SIX SIGMASIX SIGMA

Benefits of LEAN Six Sigma

• Project Benefits Can Come In Many Forms

• Improved mission success• Improved quality performance• Improved customer satisfaction• Improved budget execution• Improved financial investment• Productivity improvements• Throughput improvement• Accuracy improvement• On time delivery• Error reduction• Financial savings • Cost avoidance

• QUALITY• Quality problems are detected immediately• Expect hidden problems to surface• Root causes are immediately identified and solved• People are provided with the necessary tools and skills to ensure quality

at each step

• COST• Adherence to Takt time and standard operations minimizes staffing levels• Using a paced process maximizes productivity• Built-in flexibility results in high productivity at varying volumes

• SCHEDULE• Adherence to standard operations ensures that schedules are met

Benefits of LEAN Six Sigma Cont.

LSS, An Industry StandardLSS, An Industry Standard

2000

Increase Throughput Shorten Cycle Times Reduce Defects Lower Costs

1992 1995 Today

MotorolaABBTIIBMDECKodak AlliedSignalGE

Siebe Foxboro Lockheed Martin BombardierJohn DeereWhirlpoolGenCorpNokiaSony

Siemens Compaq Seagate PACCAR Toshiba DuPont Dow Chemical

MaytagPraxairFordAir ProductsHoneywellJohnson ControlsJohnson & Johnson

Fannie MaeBank Of AmericaIntuitAXA EquitableUnited Health GroupCardinal HealthBlue CrossProvidence HealthHome Depot

Wells FargoRobert HalfFifth Third BankCitiGroup

Re-Think

4. Lean Six Sigma Improvement Process

LEAN Six Sigma Tools

• DMAIC: Define, Measure, Analyze, Improve, Control

• Identify key players

• Perform stakeholder analysis

• Voice of the customer

• Define process improvement goals that are consistent with customer demands and the enterprise strategy

• Why the process improvement needs to occur

• Quantitatively define and document the current state

• Collect relevant data

• Create detailed process maps

• Collect baseline data on defects and possible causal factors

• Create plots reflecting defect data over time and analyze for special causes

• Develop a focused problem statement

• Brainstorm potential causes

• Organize potential causes

• Collect Data

• Use statistical methods to quantify cause-effect relationship

• Identify areas of improvement

• Select Improvement plan and execute

• Use Design of Experiments to ensure desired results are achieved

• Generate solution alternatives

• Pilot the solution(s)

• Develop plan(s)

• Quantify results

• Determine and Develop and document standardized practices

• Train

• Provide continuous mentoring

• Measure and monitor results

• Summarize and communicate learning

• Continuous Improvements

Define Define Measure Measure Analyze Analyze Improve Improve Control Control

Lean Six Sigma Tools

Name Description Results

5-S’s Sort, Set-in-order, Shine, Standardize, and Sustain

A clean environment makes for efficient work

Work flow mapping

Physically depict the flow of work within the space

Minimize travel and no overlap

Takt time

Match work production to demand so that overages and shortfalls do not occur

Value Stream Mapping

Map the actual process and flow of information from supplier to finish goods

Compare reality to intended state, and remove bottle necks to increase work flow

Demand Averagetime work Available

time Takt

Sustain

Standardize

Set-in-order Shine

Sort

DFLSS

5. Design For lean Six Sigma

Design for Lean Six Sigma Overview

• Design for Lean Six Sigma deals with creating new processes with Lean Six Sigma principles built-in

– DFLSS allows a business to create optimal processes from the start• Do it right the first time and every time

• Lean Six Sigma improves existing processes– Lean Six Sigma maximizes the speed and quality

of existing processes

Lean Six Sigma Philosophy

• The 4 elements of Standard Work to improve and control waste and defects

1. Delight the customer by delivering higher quality service in less time

2. Improve processes by eliminating defects and focus on how work flows through the processes

3. Use teamwork and share ideas with each so problems are solved

4. Base all decisions on data and facts

Design for Lean Six Sigma (DFLSS)

• Quality designed in from the start– Classic Lean Six Sigma focuses on improving

existing processes– DFLSS focuses on building Six Sigma and

Lean methodologies into new products and processes

• Change costs are lowest in the early design phase• Upfront investment to lower total development cost

and reduce overall product development time

DFLSS Tools

• Quality Function Deployment (QFD)– Helps transform customer needs into

specific technical requirements

1. Identify customer needs and wants as the voice of the customer (VOC)

2. Identify the engineering characteristics of products or services that meets VOC

3. Set development targets and test methods for the products or services

DFLSS Tools

• DMADV: Define, Measure, Analyze, Design, Verify

• Identify key players

• Perform stakeholder analysis

• Design and Define goals

• The overall vision of the new product or process

• Measure and identify critical capabilities, processes, and risks

• Create detailed process maps

• Collect baseline data and possible causal factors

• Breakdown overall vision into specific technical requirements

• Develop a focused problem statement

• Analyze design alternatives

• Organize potential causes

• Define possible designs and analyze trade offs

• Perform simulations if necessary

• Generate solution alternatives

• Evaluate and select solution(s)

• Select and execute detailed design

• Optimize design and determine verification plans

• Implement design and process plan(s)

• Test the final design

• Determine effectiveness of meeting key requirements

• Compare against overall vision

• Summarize and communicate learning

• Make recommendations for future

Define Define Measure Measure Analyze Analyze Design Design Verify Verify

Lean 6 Sigma

6. Case Study

Toyota

Production System

Case Study: Toyota

• Toyota Production System– The focus is on reduction of variation in

process outputs– Process outputs are routinely measured– All procedures are highly detailed and specific– Process improvement experiments are

encouraged, but rooted in scientific methods and based on measured process outputs

Lean Six Sigma in Action

Case Study: Toyota Example

• Passenger Seat Installation Procedure• Typical Procedure:

1. Obtain 4 Bolts and a Torque Wrench

2. Install 4 Bolts on to the Car Seat

3. Enter job complete code into computer

4. Repeat for the next Car

Much Room for Variation

Case Study: Toyota Example

• Passenger Seat Installation Procedure• Toyota Procedure:

1. Obtain 4 Bolts and a Torque Wrench2. Install upper left bolt3. Install lower left bolt4. Install upper right bolt5. Install lower right bolt6. Enter job complete code into computer7. Repeat for the next Car

Little Room for Variation

Case Study: Toyota Example

• Toyota Procedure• Each step is measured

– Steps 1-3: 20 seconds, Steps 4-6: 21 seconds, Total time: 41 seconds

– The car moves along a conveyor belt and spends exactly 41 seconds in the seat installation area

• Any negative process deviation will result in failure to install the seat within the time allotted

• Any positive process deviation will result in employee down time

– The process can them be updated to improve throughput

Case Study: Toyota

• 4 Rules of the Toyota Production System

1. All work shall be highly specified as to content, sequence, timing, and outcome (Six Sigma)

2. Every customer-supplier connection must be direct, and there must be an unambiguous yes-or-no way to send requests and receive responses (Lean)

3. The pathway for every product and service must be simple and direct (Lean)

4. Any improvement must be made in accordance with the scientific method, under the guidance of a teacher, at the lowest possible level in the organization (Six Sigma)

Case Study: Toyota

• Six Sigma Methodology– Rules 1 & 4

• Lean Methodology– Rules 2 & 3

• Result: – A successful, low cost, and high quality

production system leading to increased profits and satisfied customers

7. Key Takeaway

Lean 6 sigma

LSS Key Takeaways

• Summary– Proven track record and measurable results– Adaptable to any process and any

organization– Many different methods of Continuous

Process Improvement (CPI) available, but none have a more balanced approach than Lean Six Sigma

Increase Quality and Eliminate Waste

LSS Team Project Implementation

• Don’t do a project just to do it– Determine ROIs to choose projects

• Acknowledge and share your information with team members

• Encourage team leads and team members to participate in multiple roles

• Document team progress• Appoint someone to monitor and track project

team status • Define roles and responsibilities for teams and

leadership

Work as a Team and Document Everything

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