Heaher McCain Lean Six Sigmakcpmichapter.org/images/downloads/Heaher_McCain__Lean_Six_Sigma.pdf• Understanding Lean, Six Sigma, and Lean Six Sigma • Understanding of what LSS can

Introduction to

Lean Six Sigma

Heather McCain

© Heather McCain 7/15/20161

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


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


History of Six Sigma

• 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.


• Developed by Motorola in the 1980s

– 1985 Bill Smith coined the term

– 1987 trademarked

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.

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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

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What is Lean?

• Toyota Production System

• Methodology to improve production systems

• Goals of Lean– Improve Quality

– Eliminate Waste

– Reduce Costs


Create a learning

organization

5 Principles of Lean

Directly observe work as activities,

connections and flows

Systematic

waste

elimination

Systematic

Problem

Solving

Establish high agreement of what and how

Action

Reflection

© Heather McCain 7/15/2016© Heather McCain 7/15/20168

What is Waste?

– Anything beyond the absolute minimum amount of

• Materials

• Manpower

• Machinery

needed to add value to a product or service.

Systematic Waste Elimination


Seven Muda (Wastes)

• Defects

• Overproduction

• Transportation

• Process waste (including over processing)

• 8th added later – Underutilizing people

• Waiting

• Inventory

• Motion

Note: some wastes fit in more than one category


5S + 1

• 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

The methodology for

creating

and maintaining an

organized, clean,

and safe work

environment to

deliver

and achieve high

performance.


What is Six Sigma?

• A strategy for improving the business.

• A method of understanding and satisfying customers true needs.

• A set of leadership behaviors that help promote a culture for learning, improvement and success.

• A method of improving the understanding of 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.


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

0 σ = 100% Bad

3 σ = 7 Bad

4 σ = 1 Bad

6 σ = 0 Bad

Bottle of Pills

100

C-17 (1,300,000 Holes with Fasteners)

0 σ = 1,300,000 Missing Fasteners

3 σ = 86,849 Missing Fasteners

4 σ = 8,073 Missing Fasteners

6 σ = 4 Missing Fasteners


1.5 sigma shift

Opportunities for Improvement

Improve design for

manufacturability

Improve

manufacturing

capability

Design ProcessPrevent defects in product development

Define(Customer domain)

Characterize(Engineering domain)

Optimize(Robust design)

Verify(Design validation)

Continuous ImprovementEliminate defects in production


Analyze(Problem solving)

Improve(Root cause eliminated)

Control(process control)

Measure(Production domain)


DMAIC--Define

• 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

Define(Customer)



Control(Permanent solution)

Measure(Production)



The Customer-Supplier Chain

SIPOC

ProcessSupplierInputs

CustomerOutputs

Expec

tations

Understand

Agree

SupplierCustomer

SupplierCustomer

Customer

Supplier

Understand

Agree

Understand

Agree

Expec

tations

Expec

tations

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 whole product/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


High Level Process Map

People Machine/Method

EnvironmentMaterials

INPUTS OUTPUTS

What are we trying

to make or do?

Think in terms of the

product or finished

goods or service, not

machine, process, etc.

Product

By-Product

Key Input Variables

Key Output Variables

Support processes

Management processes


DMAIC--Measure

• 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

Define(Customer)




Measure(Production)


Measurement Systems

The collection of instruments or gages,

standards, operations, methods, fixtures,

software, personnel, environment, and

assumptions used to quantify a unit of

measure.

σ2Total = σ2

Process + σ2Measurement

Measurement Analysis

Value

Process Decision


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?


DMAIC--Analyze

• 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

Define(Customer)




Measure(Production)


Sources of Variation

Y=f(X) Y is dependent upon X

Process

Environment

Support processes Management processes

Inputs

People

Materials

Equipment

Requirements

Outputs

Product

By-product


DMAIC--Improve

• Determine variable

relationships

• Select a solution

• Confirm and validate

improvements

Define(Customer)




Measure(Production)


DMAIC--Control

• Develop process

control and control

plans

• Document process and

lessons learned

Define(Customer)




Measure(Production)


Lean Six Sigma and Project Management

PMGT 800 Lesson 2

Summer 2015

©2015 Heather McCain

Slide 26

Lean Six Sigma’s Evolution, Doug Mader

26

• Initiating Process

• Planning Process

• Execution Process

• Monitoring & Controlling Process

• Closing Process


Project Management Process Groups




Control(process control)

Measure(Production domain)

• Project Charter

• Stakeholders

• Schedule, cost

• Risk

Lean Six Sigma as a Project

http://ww.qa-inc.com/LeanSixSigmaSoftware/Black_Belt_XL/charts.asp

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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


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• Synergy– Team work

– Strategy alignment

– Variation Reduction

– Alignment of Projects

Why Six Sigma?

• Customers

• Profit

• Synergy

Six Sigma is not

merely a quality

initiative; it is a

business initiative.

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Implementing Lean Six Sigma


� Business level

� Process level

� Operations level


• Leadership

• Infrastructure

• Communication /

awareness

• Stakeholder

feedback

• Process feedback

• Project selection

• Project

deployment

Slide 3232

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

Voice of

the

Business

Voice of the

Customer

Voice of

the

Process

Potential Projects

Brainstorming

Sessions

Exploratory

Data Analysis

• Strategic fit

• Duplication/rationalization

• Initial cost/benefit/risk analysis

Prioritized Projects

Future Projects

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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



• Impact Determination / Financial Analysis

• Project Over-site

– Measurement format

– Reporting format

– Project hopper

– Financial


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


Leadership Lessons /Success Factors

• Customer Focus

• Supplier/Procurement Strategy

• Technical Support (MBBs)

• Deployment Plan

– Full-time versus part-time resources

– Incentive programs

– Training


Communicate, communicate, communicate


Leadership Lessons /Success Factors

Can be implemented in

– small organizations

– service organizations

– large manufacturing

companies

Anywhere you need to reduce

waste and variation.


Lean Six Sigma

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


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


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

• Rath and Strong, Rath & Strong's Six Sigma Pocket Guide


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)

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Documents

Heaher McCain Lean Six Sigmakcpmichapter.org/images/downloads/Heaher_McCain__Lean_Six_Sigma.pdf• Understanding Lean, Six Sigma, and Lean Six Sigma • Understanding of what LSS can