Transcript What is Lean Sigma?

Variance Reduction International, Inc.
Lean Six Sigma
VarianceReduction.com
(909) 484-2950
Lean Six Sigma Principles
 Specify value in the eyes of the customer
 Identify value stream; eliminate waste and
variation
 Make value flow at pull of the customer
 Involve, Align & Empower Employees
 Continuously improve knowledge in pursuit
of perfection
Lean Sigma Process Improvement Cycle
VOICE OF
CUSTOMER
Gap Identified
STRATEGIC
PLAN
Better
BUSINESS
UNIT
SCORECARD
BUSINESS
OBJECTIVES
UCL
Faster
Avg
Financials
LCL
BUSINESS
MEASURES
VALUE STREAM
UCL
Avg
PROCESS
MEASURES
LCL
X's
Y's
PROCESS
SCORECARD
PROCESS FLOW
Tools &
Methodology
Deployment IPO
Executive Ownership
Champion Involvement
PROCESS
Expert/ Specialist Selection
Project Selection
Training / Mentoring
Accountability
Motivation / Reward
Leadership Team
Lean Sigma
Deployment
Projects Completed (%)
Cycle Time (months)
ROI ($MM/year)
Customer Satisfaction (1-5)
Recognition (copied)
Supplier
Better
Material Type
S
Amount of A
y
Yield
Temperature
Design Type
Six Sigma
SOPs
Results
Driven IPO
Diagram
CODN (Finance)
Cost
Communication
Team Dynamics
Turnover Rate
Cell Layout Design
Piece Flow
Manpower
Setup SOPs
Maintenance SOPs
Cell Cleanliness
Lean
Time
InProcess
Storag
e
What is Lean and Six Sigma?
•
•
Lean, pioneered by Toyota,
focuses on the efficient
operation of the entire value
chain.
Focus areas:
– Remove non-value added
steps to:
• Reduce cycle time
• Improve quality
– Align production with
demand.
– Reduce inventory.
– Improve process safety and
efficiency.
•
Six Sigma, developed by
Motorola, made famous by GE,
it can be defined as a:
– Measure of process
capability
– Set of tools
– Disciplined methodology
– Vision for quality
– Philosophy
– Strategy
Lean Sigma is a combination of two powerful and proven process
improvement methods Lean and Six Sigma, that builds on
existing organization capability in quality, statistics, and project
execution.
Lean Sigma: A Set of Tools
Measurement System Analysis
Glass Inspection Test
Operator 2
Operator 1
Item
Use control charts to
understand & identify
common & special
causes
Map the process to
determine where
defects are being
created
Test 1
Test 2
Test 2
Test 1
Operator 3
Test 1
Test 2
1
2
3
4
5
6
7
Verify assessment/
measurement systems
8
9
1
0
RISK PRIORITY NUMBER (RPN) =
SEVERITY X 0CCURRENCEX ESCAPED DETECTION
Score
Category
Severity
(SEV)
Occurrence
(OCC)
5
4
3
Severe
High
Moderate
Very High
High
Moderate
2
Minor
Low
1
Negligible
Very Low
Document failure modes
Escaped
Very High
High
Low
Very Low
for products
andModerate
processes
Detection
(DET) to identify defects' root cause
Run
A
B
AB
1
-
-
+
2
-
+
-
3
+
-
-
4
+
+
+
y
1
y
2
y
3
...
Designed experiments to



A A +
B B +
AB A • B
yˆ = y +
make
process
robust
2
2
2to
variation
sˆ = s¯ +

A A +
2

B B +
2

AB A • B
2
y
s
How is Lean Sigma different and similar to
past quality and statistical efforts?
• Sponsored and directed by
leadership
• Aligned with business
objectives and tactics
• Focused on delivering
business results
• Track record for delivering
business results
• Disciplined and systematic
execution process
• Brings in new tools to most
companies – DOE,
hypothesis testing, FMEA,
Kanbans, PokaYoke
• Uses many tools already
familiar to many people –
fishbone, process flow,
SPC, brainstorming
• Aligned with quality efforts
• Uses a logical problem
solving approach that will
not be new to some
• Aligned with past quality
and reliability efforts –
TQM, Baldrige, Deming
Focus Area of Lean and Six Sigma
Lean:
• Reduction of the “7 hidden wastes” or
non-value added activities to reduce cycle
time.
Six Sigma:
• Reduction of variability to improve
quality.
Both Lean and Six Sigma Tie
Improvements to $$$
Overlap of Lean and Six Sigma Tools
Cycle Time Reduction Variance Reduction
Mapping
Logical
Physical • PF
JIT
• Scorecard
Time
Quick
• SOP
Changeovers
• Mistake
Single Piece
Proofing
Flow
5Ss
• $$$
Visual
Lean
Controls
IPO
CE
CNX
Testing
Correlations
Hypothesis
DOE
FMEA
MSA
Six Sigma
Combining Lean and Six Sigma
Maximizes the Potential Benefits
Six Sigma – Improve Quality
Overall Yield as a Function of Sigma Level & Process Steps
Sigma Level
No. of Parts or
Process Steps
1
5
10
50
100
500
1,000
5,000
10,000
50,000
100,000
500,000
1,000,000
+/- 3
+/- 4
+/- 5
+/- 6
93.32%
99.379%
99.9767%
99.99966%
70.8%
96.9%
99.884%
99.998%
50.1%
94.0%
99.767%
99.997%
3.2%
73.2%
98.84%
99.983%
0.1%
53.6%
97.70%
99.966%
0.0%
4.4%
89.0%
99.8%
0.2%
79.2%
99.7%
0.0%
31.2%
98.3%
9.7%
96.7%
0.0%
84.4%
71.2%
18.3%
3.3%
Sigma Capability
The number of Sigmas between the center of a process and the nearest
specification limit
3  Process Centered
• We make more than
3  Process
customer needs because
Upper
Lower
some of what we make
Specification
Specification
is waste
Limit
Limit
• Process is WIDER than
the specifications
Determined by
the customer
Determined by
the customer
WASTE
-6
-5
-4
3  Process has 66,807
dpm vs 3.4 from a 6 
-3
-2
-1
0
+1 +2 +3 +4 +5 +6
6  Process
process
-6 -5 -4 -3 -2 -1 0 +1+2+3+4+5+6
6  Process Centered
• We make as much as
the customer needs
and have very little
waste
• Process FITS within
the specifications
The First Step is Process Knowledge
Long Term Success
Return on Investment
Process Improvement
The 1st Step is Process Knowledge
80 Percent of the Gain with
20 Percent of the Complexity
Improvement
Most of the 80%
improvement is
possible with
the basic
quality and
statistical tools.
20%
Tool Complexity
Sustained Improvements without
Capital Dollars
•Sustainable Results
•Process improvements from Lean Sigma Projects
are sustained.
•Typically, results are audited at 4 and 12 months
after implementing changes.
•Not Capital Driven
•Lean Sigma projects are NOT Capital driven.
•Most improvements are made by changes in the
SOP.
Lean Six Sigma Roadmap
DMAIC Strategy
• Define
– Identify and Prioritize Opportunities
– Select Your Project
– Define the Goals and Objectives
– Form Cross functional Team
– Understand Customer Requirements
• Measure
– Define and Analyze the Current Process
– Assess the Capability of the Measurement
Process
– Assess the Current Capability of the Process
– Variance Reduction
DMAIC Cont.
• Analyze
– Identify the Key Input Variables
– Discover the Relationship between the Inputs and
Outputs
– Identify the Root Causes of the Problems
• Improve
– Identify and Test the Proposed Solutions
– Re-assess Capability
– Implement Solution
• Control
– Document Results and Return on Investment
– Take Actions to Hold the Gains
– Celebrate and Communicate
Variance Reduction International, Inc.
President, Sally Ulman
Mary Ann “Sally” Ulman teaches and consults on the subject of applications of statistical methods. She is an experienced facilitator in the
areas of team building, problem solving, metric development, and implementation of process improvement strategies. Ms. Ulman left
Chevron, USA after sixteen years where she worked as a Quality Facilitator, Corrosion Engineer, and Industrial Water Treatment
Technologist throughout Central California and Sumatra, Indonesia. She has taught and consulted for Chevron, Caltex Pacific Indonesia,
GlaxoWellcome in Pakistan, GlaxoSmithKline in Bangkok, Kuala Lumpur, London, Jakarta and India, Texaco, Baker Petrolite, Aera
Energy, National Association of Corrosion Engineers, Farwest Corrosion, Mazda USA, Teac America, American Business Communications,
California Training Cooperative, Auto Meter, PLCs Plus, United Way Agencies and various public seminars. Her extensive consulting
background involves industrial and service applications of DOE, SPC, LeanSigma, reliability, management and team building techniques.
She received her B.A. in Physical Education from California State University, Northridge. She attained Six Sigma Black Belt certification
from University of Texas and Master Black Belt certification from Air Academy Associates. In addition she also holds a California Junior
College Teaching Credential, Corrosion Technologist and Coating Inspection Certification from the National Association of Corrosion
Engineers. She is now President of Variance Reduction International Inc. and works as an instructor and consultant for Air Academy
Associates and is the Six Sigma instructor at San Diego State University.