Lean Six Sigma Wiki

5/20/2018 Lean Six Sigma Wiki

1/18

LEAN SIX SIGMA WIKI23/02/2010

Hi-Tech

Aakriti Vig

[email protected]


2/18

WHAT IS SIX SIGMA:-

Six Sigma is essentially a comprehensive yet flexible system for achieving,

supporting, and maximizing business profits. It is a methodology driven by

understanding customer needs, and the disciplined use of data, facts, and statistical

analysis to improve and reinvent organizational processes.

Six Sigma simply means a measure of quality that strives for near perfection. The

term now applies to a disciplined, data-driven approach and methodology for

eliminating defects (driving towards six standard deviations between the mean and the

nearest specification limit) in any process - from manufacturing to

transactional/services and from product to service.

A process that has reached the "Six Sigma Level" operates with so little variation that

99.9997% of the time it is defect free. Or in other words, only results in 3.4 defects in

one million opportunities. (It should be noted that not all processes need to perform to

a Six Sigma level. In most cases, it is simply not cost-effective to be that accurate.

ORIGIN OF SIX SIGMA:-

Six Sigma methods started in the early 1980s at the Motorola Corporation when it wasdiscovered that products making it through the production process with a high first-

pass yield performed better in the field. With this knowledge, Motorola Corporation

focused on creating strategies to reduce defects in their processes.

In the mid-1980s, Motorola joined forces with other companies, including IBM, to

form the Six Sigma Research Institute. Since then, Six Sigma has been proven by

many companies as a robust method to provide productivity, quality, customer

satisfaction, and other process improvements.

Six Sigma has a very strong base in statistics. The chart below indicates the "Bell

Curve" that could be drawn based on Mean and standard deviation. It is a statistical

phenomenon, where any randomly occurring event, will tend to form a pattern,

typically they will cluster around the mean. Without getting deeper into statistics, a

curve of that nature is depicted below :


3/18

ADVANTAGE OF SIX SIGMA:-

One of the key advantages to Six Sigma is that it provides a measurable way to track

process performance. The performance accuracy of a process is measured with a

metric known as the "Sigma Level". The Sigma Level is based upon a comparison of

the variability of the outputs versus the performance specifications of the process.

GOAL OF SIX SIGMA:-

The goal of Six Sigma approaches is to reduce variability, improve predictability and

quality, by systematically eliminating defects, that is, defects as viewed by customers'

eyes.


4/18

LEAN SIX SIGMA:-

Lean refers to a set of processes and improvement techniques that are most effectiveat delivering greater client value. Lean is about figuring out what the clientconsiders

as value and designing the system to meet that - no more, no less.

Lean does not mean delivering less, or working harder; it is working smarter by

avoiding any activities unrelated to delivering client value. In other words, it is the

precise matching of our capabilities to the client's needs or wants.

Lean is an industry-proven methodology, that when executed, results in the ability to

deliver more value to clients through operational excellence. This is possible through

the relentless identification and elimination of "Muda" (loosely translated from

Japanese meaning operational inefficiencies or WASTE) from our operatingenvironment. In contrast to Lean, Six Sigma focuses on reducing variability in a

process to improve quality, i.e. to ensure quality at source.

Lean and Six Sigma are both based on over 50 years of process-improvement

experience based on the renowned Toyota Production System from the 1960's, which

was developed by Taichi Ohno, the Toyota Executive. Since then, it has evolved

through several quality revolutions such as Just-In-Time Production, Lean

Manufacturing, Total Quality Management and finally Six Sigma - which was

popularized by Motorola and GE.


5/18

THE ORIGINS OF LEAN SIX SIGMA:-


6/18

THE FIVE PRINCIPLES OF LEAN THINKING

OBJECTIVES O F LEAN THINKING:-

Delivering more value to clients faster, with less waste

The objective of Lean is to deliver exactly what the customers need, when and

where they need it. Everything else that does not add any value (in the

customer's eyes) should be eliminated from the process. Lean does this by

focusing on the operating system, management system, and mindsets and

behaviors.

Typically, there are seven "Wastes" associated with Lean and these are as

applicable in services as they are in product value chains :


7/18

The Five Principles of Lean Thinking

1. In Lean Thinking "Value" is defined from the customer's perspective. Lean

has well developed tools to help capture value.

2. A Value Stream is a sequence of steps taken to create value, and an early

activity in Lean Projects is to set out every step in a process, both value-

adding and non-value-adding

3. Creating flow, allows value to flow smoothly through the value stream without

obstruction

4. Work is pulled by customer and this pull works backwards through the

preceding steps until it activates the initial stage of the process. An example isa can of soft drink bought from the store shelf, triggering a chain of activities,

up till the manufacturer of the soft drink placing an order for raw materials

with its suppliers, manufacturing the soft drink can and sending a delivery to

replenish the store shelf.

5. Continuously and relentlessly drive for improvement.


8/18

COMBINING LEAN AND SIX SIGMA TOOLS AND METHODS:-

Combining Lean and Six Sigma tools and methods provides a complete set of tools to

approach any process problem. By utilizing lean techniques to eliminate non-value

add process steps, (waste), and also applying Six Sigma techniques to reduce variation

and defects, the result is a fast efficient process with high quality and few defects.

HOW DOES LEAN SIX SIGMA BENEFIT THE ORGANIZATION

While Lean is often seen as just another set of tools, true Lean enterprises (for

example, Toyota) recognize that when properly applied, the methodology:

fundamentally changes an organization's culture

can be successfully used in all industries despite varying processes and

functions, and

is built on guiding principles of customer value and waste elimination, which

are fundamental to achieving world-class status.

Its goal is growth, not just productivity. Its aim is effectiveness, not just efficiency.

APPLYING LEAN TO GBS ACCOUNTS:-

Applied to GBS Projects, Lean will not only help us do things better, but it will help

us do better things. It can help our clients discover opportunities beyond operations,

enhance financial performance and create organizations that have an inherent

inclination toward innovation.BS Accounts

Any improvement requires effort and investment. If there is no hard saving or visible

improvement in quality for Customer and an organization, then the investment is not

worthwhile. LSS requires careful assessment and quantifying of the improvement, and

then ensuring that the benefit is realized through structured processes. For this reason,

the Lean CoE needs to review potential Projects and work with you through a series

of selection stages to ensure that there's a sound business case for proceeding with a

Lean Project.


9/18

LAUNCHING LEAN DEVELOPMENT:-

Deploying Lean requires a very significant effort from both country management and

the practitioners who will be involved. For this reason, gaining buy-in to Lean and

building energy around how to use it to add value and to do more with less is

critically important. Senior Leaders have an important role to play in espousing Lean

as a vehicle for strategic change and in creating the climate for success.

Lean Deployments in a country start with a deployment Launch Event for Senior

Leaders. The Launch Event aims to build awareness of the approach and the

objectives of Lean Projects at Executive level, create excitement and buy-in. The

Launch Event also has a fun team building element, as we run the Lean CourierSimulation so leaders have the chance to experience the Lean journey in just one day.

This is usually followed by an account team Lean Project kicking off the following

day.

Is my Project suitable?

Selecting the right project ensures that we are getting maximum benefits out of the

investment that we are making.

Broadly, to be considered for a Lean Project, and in order to make the most impact,

your Project should satisfy the following criteria :

Project has completed transition

There exist some customer / business pain points e.g. low CSAT, not meeting

SLA, higher customer expectation, low or negative profitability, low

Employee satisfaction etc.

Team should not be very fragmented

Total team size of more than 15 people active in the proposed value stream

EXAPMLES OF PROCESS CHANGES BY USING LEAN

METHODOLOGY:-er

Have you the problem of a client complaining about poor service, poor response time,

or perceiving that they are not getting value for money? Is the competition breathing

down your neck and able to offer the same service at a lower price? Have you a desire

to improve your service far beyond the current level?

This page collects together examples of process changes that have emerged through

rigorous application of the GBS Lean Methodology, that we know improve service

efficiencies and deliver measurable benefits. GBS Lean Coaches define these process

improvement best practices as "Benefit Drivers" and have documented the


10/18

applicability of each Driver, how to assess the improvement opportunity, and

estimated the performance improvements.

Where the Benefit Drivers can help you - typical project challenges:

Typical challenges.... Actions that can be taken...

There are many and varied types of

work in the project that take away

from productive time

Rationalize different meetings and reports to

reduce non-value-adding effort

There are differences in work loadsacross various applications at any

time that are causing overload in

some teams and idle time in others

Cross-skill team members so they can beutilized in other applications during their times

of lower activity

Sometimes additional work flows in

which could better be handled in

earlier stages or which could be

prevented entirely

Develop a knowledge database so that tickets

can be resolved by the helpdesk. Eliminate the

root causes of repetitive tickets through

mistake-proofing, user training or permanent

solutions

Productive time is lost due to

insufficient detail on tickets or

through new requirements

Provide comprehensive templates to users to

ensure all required detail about a problem is

captured

Team members lose time and effort

due to misallocation of tickets to the

wrong queue or person

Strengthen ticket dispatch by instituting a

dedicated dispatcher role, enabled by the team's

skills/ responsibility/ availability information

There is over-reliance on repetitive

manual testing

Introduce test automation tools or scripts, so

that repetitive manual testing can be avoided

During the test cycle, defects from

critical modules are found late,

reducing the time available for fixing

and re-testing

Perform test case sequencing so that critical or

risky requirements are tested early, to allow

sufficient time for the team to fix the defect

comfortably

Significant rework is caused due to

many defects introduced during

design and development

Conduct causal analysis of defects to

understand the root causes and standardize

development processes to prevent them


11/18

DELIVERING LEAN PROJECTS:-Methods

Lean is applied to Value Streams through structured methodologies and using a

carefully selected toolset.

We apply a very robust multi-stage approach to identifying and qualifying suitable

Value Streams, and selecting the specific Lean Method that will be used for each

Value Stream. (Method selection is done in the Initialization & Mobilization phase).

Whilst in general, our proven Lean Value Stream Improvement method will be

applicable, the business need should always drive selection of the appropriate method.

The diagram below shows the nature and scope of the GBS Lean Methods portfolio :

Roles & Responsibilities on Lean Projects


12/18

Building Lean Capability and delivering benefits requires continuous (and rigorous)

cooperation and coordination. There are some key roles that need to be in place to

drive a Lean Program :

Executive and country leadership- promote the use of Lean so that it

becomes the preferred method for improving business processes

Executive Sponsor- implement Lean thinking in an Account/ Department so

that it is used to deliver benefits and becomes an integral part of business

planning and operating

Lean Deployment Champion- remove barriers for the use of Lean so that it

becomes the preferred method for improving business processes

Account Value Stream Owner- control the performance of an end-to-end

process that delivers value to a customer

Value Stream Manager- deliver rapid and effective improvements inbusiness processes using Lean that realize benefits

Stakeholder- liaise with the Value Stream Manager, Sponsor and others on

matters that may enhance or threaten the benefits of Lean improvements

Change Team Member- support the Value Stream Manager to create

solutions that deliver high benefit and are adopted rapidly as the new way of

working (generally about 5-8 Change Team Members participate in a Lean

Project)

Team Member- support the Value Stream Manager to create solutions that

deliver high benefit and adopt those rapidly as the new way of working

Lean Coach- accelerate the business benefits of using Lean by developing

the capability of Sponsors and Value Stream Managers to a point ofproficiency


13/18

Within the Lean CoE, additional roles support the global deployment :

LEAN METHODOLOGY AND TOOLS: INITIALIZATION &

MOBILIZATION

The final step is Mobilization of each Value Stream.

Certain key roles need to be identified at this stage, such as Deployment Champion,

Value Stream Owner, Value Stream Manager, Change Team Members and the Lean

Coach.

So the objectives of this phase are to:

Confirm the Value Streams with the parties involved

Agree teams and sponsors


14/18

Agree Project scope

Agree launch launch date

LEAN METHODOLOGY AND TOOLS: VALUE STREAM ASSESSMENT:-

Materials for Lean Coaches:Value Stream Assessment Training

The Lean Value Stream Improvement Method Assessment phase objective is to assess

the flow of services or products. A Value Stream is a block of activities (Value

Stream Steps) which starts and ends with the Customer. After designing a new and

improved future state, the assessment phase delivers around 10 - 15 "Future State

Components" (FSCs) or key actions, which are subsequently implemented in the

DEDIC/DMAIC phase. (A further essential component of implementation is setting

up a Test Cell to test the new process in a ring-fenced environment).


15/18

The Lean Value Stream Method is structured as a series of workshops:

W0: Lean awareness and lean courier simulation experience;

W1: Value Stream kick-off, scope, customer requirements definition;

W2.1: Routing by Walking About;

W2.2: Current State Mapping;

W3: Future State Design;W4 Implementation Planning.

During the Workshops, a variety of tools are applied to assess the current state and

develop future state components, including SIPOC, Voice of the Customer,

Mississippi charts, fishbone diagrams, seven wastes analysis, value stream mapping

and more! The Value Stream Assessment Method focuses on two key elements:

The Value Stream Team members are employees across the whole value stream -

people who really understand the day to day business.

The Team reports out to key stakeholders during 3 report outs (W2.2, W3, W4) to

provide the end-to-end process understanding and to gain commitment to move ahead.

The 4-5 week assessment is followed by immediate Implementation.

LEAN METHODOLOGY AND TOOLS: IMPLEMENT PHASE:-

Material for Lean Coaches:DEDIC Training

In the Implementation phase, the methodology followed to further develop and

execute the Future State Components differs according to the extent to which we

know the root cause of the performance problem. In most cases, Future State

Components (FSCs) use the DEDIC approach for implementation. However, in


16/18

situations which call for an in depth analysis of performance data in order to diagnose

the root cause of the problem, the Six Sigma DMAIC approach should be followed. In

either case, the FSC project requires around 15weeks to complete and reach theOperational Future State.

DEDIC APPROACH:-The DEDIC methodology builds on the Lean Value Stream Assessment method and is

used to implement the previously identified Future State Components (FSCs). It ensures

Seamless integration of the lean value stream assessment and implementation of the changes.

This structured improvement project framework is used to quickly and efficiently implement

the best solution to knownroot causes.


17/18

The focus is on change and applying lean tools such as:

Application of 7 Keys

Benefits Tracking

Brainstorming / Solution Selection

Setting up the Test Cell

Controlled Handover

DMAIC APPROACH:-

DMAIC process improvement methodology focuses on using simple data driven tools to

analyze data, identify root causes and determine the ideal solution. DMAIC is best used when

Data is required to identify root causes of a problem i.e when the root cause is unknown.Some of the key tools to apply are:

Data Collection Plan

Histogram, Pareto Chart

Cause and Effect Diagram

FMEA (Failure, Mode and Effect Analysis)

Run Charts/Control Charts

Phases Define Measure Analyze Improve Control

Activities

Define project

objectives

Validate/Develop

Project Charter

Identify quick

wins and refine

process Identify

performance

measures

Collect the

data

Plot and

analyze data

Determine if

special

cause exists

Determine

Sigma

performance

Stratify

process &

data

Develop

problemstatement

Identify root

causes

Validate root

causes

Generate

Solution Ideas

Determine

solution

impacts :

Benefits

Evaluate and

select solutions

Develop

process maps

and high-level

plan

Develop pilot

plan

Verify Sigma

improvement

Develop

standardizationopportunities

Integrate

lessons learned

Handover to

process owner

(VSM)


18/18

Key

Deliverables

FSC Charter

Nominated Team

Definitions of

performance

measures andbenefits

FSC replication

plan

Detailed

process map

Baseline

performance

DPMO

Quantified

projectobjectives

Cause &

effect

relationships

Prioritized

risk

Identified

sources of

variation

Updated

process

maps

Potential X's

critical to

process

performance

Identified

improvement

opportunities

Statistical

analysis of

data

Detailed

problem

statement

Solutions

Process maps

documentation

Implementation

milestones

Improvement

impacts and

benefits

Proposed

measures &

targets

Organization

structure

impacts

Handover

Future State

Process

control

systems

Standards,

procedures &

agreed

measures

Training

Team

evaluation

Pilot and

solution results

Success stories

Implemented

organizational

change

Documents

Lean Six Sigma Wiki