Transcript Six Sigma Agenda - free lean manufacturing

The Process DMAIC
Lean Foundations
Continuous Improvement Training
Key Learning Points

Problem Solving is a
Process : Process : Process
The Process DMAIC
Define
Analyze
Measure
Project
Selection
• Hoshin Planning
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• COPQ
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Goals: 98%
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IMPACT
Supply chain / CIP
Communications
IT
Legal
HR
Accounting / Treasury / Tax
Planning
FPD
FCD
FSD
Improve Total Debt / EBITDA to 2.5X
Improve DSO's 10%
Improve inventory turns by 1
Plant level implementation of FMS
 Embrace "Customer First"
 Organic growth (2X market rate)
Leading industry consolidator
Low cost producer
Top-tier financial performance
 Live the Flowserve Performance Culture
• Benefits Model
Project: Reduce the time for processing an order
The desirability of a project increases as you move from the
lower right to the upper left, and as the circle gets larger
Probability
of Success
On Time Delivery (%)
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Achieve $115 M IDP synergies
Acquisition growth of $1.7 B
15% Operating Profit CAGR / 15% OP % sales
Implement / sustain Flowserve Management System
Primary working capital equal to 15% of sales
Investment Grade credit rating
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• Project Charter
PRIMARY METRIC: % Delivery Time within 24 hours
D
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Low
Resources
Low
Med
Baseline: 71%
80
S.M.A.R.T.
70
60
50
40
Hi
Week
11
EFFORT
 Primary Responsibility
23
 Secondary Responsibility
90
• 7-Wastes
Week
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• Secondary metric
• Belbin Analysis
SECONDARY METRIC: Error of Part Shipped
Summary of Belbin Styles
Project: Reduce the time for processing an order
10.0
DRIVE
9.0
8.0
Percentage of Error
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Long-Term Strategies
(1)
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2002
Targets
(4)
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2002-2006
Breakthrough
Objectives
(2)
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• Primary metric
Project Desirability Matrix
In
2002 Contributions to
Objectives
(3)
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Achieve $266 M Operating Profit / 12.6% OP Margin
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 Improve leverage ratios beyond bank requirements
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Identify/implement inventory and A/R reduction processes
Launch Flowserve Management System
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Improve organization - people, processes, systems
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SGA cost initiatives / efficiency improvements
Implement / sustain Supply Chain Management
Implement / sustain CIP culture…Lean, 6 sigma
 Pursue value enhancing acquisitions
 Expand end markets
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 Expand product offering
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 Create and deploy "Customer First" processes
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Complete strategic acquisitions of $500 M
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$300 M strategic growth programs identified
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Grow organic sales by $100 M
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Organic growth of $800 M
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DIRECTING
PRODUCING
CW
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CF
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CH
ANALYSIS
5.0
Baseline: 3.6%
HARMONY
ME
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TW
PL
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PROBLEM
SOLVING
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CONNECTING
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Week
11
• Brown Paper
Control
Team
Chartering
• Desirability Matrix
Flowserve Top Level Goal Deployment
Improve
• 6-S(5S + safety)
The 6S Activities
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Sort:
Seiri (separate)
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Straighten:
Seiton (put in order)
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Shine:
Seiso (clean)
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Standardize:
Seiketsu (standards)
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Safety:
Anzensei (safety)
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Sustain:
(discipline)
Shitsuke
FN: Lean0609.PPT
15
CREATIVITY
Week
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Week
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• HP (Hoshin Planning)
• COPQ
• 7W /6S
• Project scope
• Desirability Matrix
• Primary metric
• Secondary metric
• Brown Paper
• CHARTER
• Problem & Goal Statement
• Milestones
• Resources Allocation
• Roles definition
• Benefits Model
The Process DMAIC
PART No.
Stand up and walk to board
CLOCK
RUNNING
TIME
2
W rite "Growtth" on board
3
W alk back to chair and sit down
CLOCK
RUNNING
TIME
ELAPSED TIME
CLOCK
RUNNING
TIME
ELAPSED TIME
Plan for data
consistency
and stability
Begin data
collection
DATE
M. Smith
1
2
3
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6
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10
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12
5
20
35
48
1:02
10
24
35
49
2:00
15
30
5
5
5
5
4
2
4
5
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5
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25
38
15
27
40
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53
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20
3:00
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30
15
30
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58
8
20
30
45
55
10
25
5
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5
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3
5
3
5
3
5
5
5
Most Repeatable
Operation/
Element Time
Best Repeatable
Operation/
Element Time
5
4
5
3
5
3
REMARKS
Talking to an operator
Gage R&R (ANOVA) for Measure
ELAPSED TIME
CLOCK
RUNNING
TIME
Operator #1
Sample #Standard Run #1 Run #2
1
pass
pass
pass
2
pass
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pass
3
fail
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fail
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pass
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fail
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fail
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fail
ELAPSED TIME
CLOCK
RUNNING
TIME
CLOCK
RUNNING
TIME
ELAPSED TIME
CLOCK
RUNNING
TIME
ELAPSED TIME
CLOCK
RUNNING
TIME
ELAPSED TIME
CLOCK
RUNNING
TIME
Operator #2
Run #1 Run #2
pass
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ELAPSED TIME
CYCLE TIME
• Takt time
Example: Takt Time Calculation Sheet
Part No. __XM-35___
Operating
Tim e
420
Num be r of
Shifts per Day
25,200
sec per day
1
shift X 60 sec
=
min per shift X
2
shift X 60 sec
=
sec per day
min per shift X
3
shift X 60 sec
=
sec per day
Monthly
Requirements pe r
Production Plan
14,000
Daily Operating Time (A)
min per shift X
Units
Num be r of Work ing
Days in the Month
/
20
Days
Daily Require ment (B)
=
700
Num be r of
Shifts per day
Units per day
TAKT TIME
25,200
700
1
Daily Operating Time (A)
Daily Requirement (B)
2
Daily Operating Time (A)
Daily Requirement (B)
=
=
sec per unit
3
Daily Operating Time (A)
Daily Requirement (B)
=
=
sec per unit
=
=
36
sec per unit
15 15 13 15 10 12 10 15 10 15 15 40
15
10
Total
Total
• Data Definition
• Types of data
• Data collection
• Takt time
• Time Observation
sheets
Gage name:
Gage #020371
Date of study:
Reported by:
Tolerance:
01/01/1998
Six Sigma BB
1.5 mm
Misc:
Buff alo, NY Plant
Operator
Operator*Part Interaction
CLOCK
RUNNING
TIME
ELAPSED TIME
• SIPOC
• Value Added
• Non Value Added
• Cycle time
• Process time
• Defects
• Brown Paper
Special cause
OBSERVER
3/ 8/ 99
Average
Clarify data
collection
goals
o
0
OPERATION / ELEMENT DESCRIPTION
ELAPSED TIME
Continue
improve
measurement
consistency
X
o
Operator #3
Run #1 Run #2
fail
fail
Gage R
fail
fail
fail
fail
fail
fail
11
fail
fail
10
pass
pass
09
fail
fail
08
pass
pass
Gage R
& R (ANOVA)
for Measure
07
pass
pass
06
fail
fail By Oper ator
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pass
pass
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pass
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0 9fail
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0 8fail
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06
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1
2
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Oper ID
& R (ANOVA) for Measure
1 2
3
G agename:
Dat eof st udy:
Repor ted by:
Gage#020371
01/01/1998
Six Sigma BB
Tol erance:
M isc:
15 mm
Buff alo, NY Plant
4
G age#020371
01 01/1998
Repor ted by:
Tole ance:
S xS gma BB
1 5m m
M sc:
B uf alo, NY Plant
1
2 3
4 5 6
Part ID
5
6
7
8
9 10
Part ID
By Part
Gage name:
Da eof udy:
1
2
3
1.1
1.0
0.9
0.8
0.7
0.6
0.5
0.4
7 8
9 10
•Graphical display (Run
Charts/ Control charts)
Variation and Control Charts
Region of Non -Ra ndom V ariation
Region of Random Variation
Region of Non -Ra ndom V ariation
Upper
Control
Limit
Process
Average
Out of Control
Lower
Control
Limit
Xbar Chart for C3
7
SAMPLE NUMBER
1
6
1
5
In Control
1
4
1
1
1
1
1
3
3. 0SL = 2. 945
2
X = 1.283
1
0
-3.0S L =- 0.3793
-1
0
10
20
Sample Numb er
30
Common cause
ORDER OF
OPERATION /
ELEMENT
1
Develop
Operational
definitions &
procedures
OPERATOR CYCLE TIME
MACHINE: __________________CYCLE TIME
OBSERVED CYCLES
Sample Mean
Road Map 5-step Data collection process
Growtth #1
• Voice of the Customer
Variation: what to do next
Measurement System Analysis
Example: Time Observation Sheet
W rite "Growtth"
Establish
Process
Capability
• Common cause/Special cause
• MSA
• Time Observation sheets
PROCESS NAME
Control
Understand
variation
Data
Collection
• Data collection plan
Improve
Type of variation
Process
Mapping
• SIPOC
Analyze
Measure
Special cause
Define
Common cause
Look for what
was different
between
individual points
Take action
based on the
reported
difference
Study all
the data
Make basic
changes to
the process
Waste time
Increase
variation
Gain a better
understand
of the system
Reduce
variation
Gain useful
information
Reduce
variation
Lose time in
responding to
the problem
Waste time
• MSA
• Common cause
• Special cause
• Graphical display
• Run Charts
• Control charts
• Voice of the customer
• Process Sigma
• Other Capability measures
• BASELINE
The Process DMAIC
Define
Analyze
Measure
Quantify
& Verify
Causes
Identify
Causes
• XY matrix
XY Matrix: Example
Process Name
8
10
4
5
6
240 18.58%
190 14.71%
10
AirPressure
H ousing Length
All S OP s
9
135 10.45%
LineVoltage
135 10.45%
H20Circulation
135 10.45%
9
9
10
W eld S chedule
6
10
Air P ressure
5
5
5
8
Line V oltage
5
5
5
9
H 20 C irculation
5
5
5
10
W idth B racket 2
7
11
Length B racket 2
12
D aily Tip D ressing
15
• Cause & Effect Diagram
WidthBracket 2
10
7
10
8
13
14
70 5.42%
All SOPs
WeldSchedule
LengthBracket 2
49 3.79%
DailyTip
Dressing
154 11.92%
Note: This captures
what is known so far
about the process.
• Concentration Diagram
Fishbone – Example
Example #2 --- Concentration
Diagram
Ability to read Angle
Ball Composition
Operator #1
Operator #2
Operator #3
No Relationship
Strong Linear
60
50
40
47
46
45
46.5
47.5
48.5
49.5
50.5
51.5
52.5
53.5
60
X1
Ball Retriev al too
long
Uncomf ortable
Location
Feedback
mechanism
5.5
52
51
5.0
50
49
48
47
P.M.
Capability
Pressure
Environm ent
Methods
Machines
Moderate Linear
55
54
53
6.0
Stability of Machine
How operating Catapult
80
X
Strong Non-Linear
Too many
rejected shots
Variablility of Catapult
Poor f low
Air Currents
70
46
45
4.5
0
10
20
30
40
50
60
70
80
90
100
46
47
48
49
50
51
52
53
54
Machining a shaft
on a lat he.
Cycle Time = 5 mins
DPU = 0 .056
Re-work:
Detaile d cutting.
Cycle Time = 40 mins
DPU = 0 .00
1-RTY = 5.5%
Inspect ion.
Cycle Time = 2 mins
DPU = 0 .00
RTY = 94 .5%
(Ys )
Dia meter Taper
Surface Finish
(X,Y): S hafts n eeding
detailed cutting
(und er-machined)
SCN
Att/ Var
Focus of Six Sigma
Pareto your
XYRank
6
MS24andE-mail info.
N
A
JobKnowledge
C
V
Methodof approach
C
A
4
5
Cross reference
C
A
10
ACADprograms,Tools andProcedure S
V
2
AcadLibrary
C
V
Global Manual Reference
S
A
Interimstandards
S
A
Material codes
S
A
13
11
7
16
Off standardcomponent design
C
V
3
Spl. Port connectiondesign
C
V
EISupdation
S
V
PCBMupdation
S
V
Labels (API+Customer etc.)
C
V
Spl. Instruction&language
N
V
9
14
14
15
11
Checking
C
V
1
Re-Work
C
V
8
Hint: RTY = e -dpu
• Process map analysis
(VA/ NVA)
• Advanced analytical tools
Examples of Scatter Plots
49
48
Experience
 C = Controllable
 S = S.O.P.
 N = Noise
• Scatter diagram
54
53
Switching of roles
(Xs)
C Rotational Speed
C Traverse Speed
C Tool Type
C Tool Sharpness
C Shaft Material Characteristics
C Shaft Length
C Amount of Material Removed
per Cut
S Part Cleanliness
C Coolant Flow
N Operator Procedures
N Material Variation
N Ambient Temperature
S Coolant Age
Operator Only
Identifies bottlenecks and manning requirements.
requirements
52
51
50
Quality of
piv ot pins
Set up
Operator & Machine
Ability to work as team
Wear of Ruber Band
Detailed Process Analysis
Machine Only
12
Tape reader consistency
People
Materials
Ease of reading Tape
X
Operators Needed
(Initial Target)
44
Takt Time =
36 seconds
55
Fishbone - Catapult Assessment
Tooling
50 3.87%
Bottleneck
40
35
30
25
20
15
10
5
0
2.17
=
Y = f(X)
Standard
Controllable
To get results, should we focus our behavior on the Y or X ?
Noise
60
50
40
30
20
10
0
C
S
N
•Establish targets
PRIMARY METRIC: % Delivery Time within 24 hours
Spaghetti Diagram
Goals: 98%
100
90
Baseline: 71%
80
70
60
55
•RPN=Sev  Occ  Det
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Flows of metals within a metal usage process
Week
11
• Pareto
• Cause & Effect Diagram
• Scatter diagram
• Spaghetti Diagram
• XY matrix
• FMEA
• Cycle time/Takt time
 Independent
 Output
 Input
 Effect
 Cause
 Symptom
 Problem
 Monitor
 Control
• Y = f ( X)
• Recalibrate Scope
• Establish targets
Project: Reduce the time for processing an order
110
40
• Spaghetti Diagram
 X1 . . . X N
 Dependent
If X is critical, why do we constantly test and inspect Y?
50
• FMEA
 Y
• Identify Critical X’s
On Time Delivery (%)
9
7
7
36
A
7
10
Takt Time
Identification of X’s
3/8/99
= 78
N
V
H ousing W idth
•Y=F (X)
•Identify Critical X’s
M. Smith
Date
Sum of Operators Cycle Times
A
Length B racket 1
3
Prepared By
XM-35
BEFORE GROWTTH
V
5
Inputs
W idth B racket 1
2
HousingLength
Part No.
Machining
Seconds
All Welds
Present
Ra nk
Flash Free
35 2.71%
N ugget Siz e
HousingWidth
Length
D imension
49 3.79%
Output
Variables
50 3.87%
Width
D imension
WidthBracket 1
LengthBracket 1
1
Quantify
Opportunity
%
D ate: 12/20/96
A
Input Variables Rank
P roject: H ousing W elding
DEM O
Instructions
•Process map analysis (VA/NVA)
Example: Cycle Time / Takt Time Bar Chart
V ie w Re sults
De le te
Control
• Cycle time/Takt time
N
V
• Pareto
Improve
Week
12
Week
13
Week
14
Week
15
Week
16
Week
17
Week
18
Week
19
Week
20
Week
21
Week
22
Week
23
Week
24
The Process DMAIC
Define
Generate
Solutions
• Brainstorming
Process for Formal Brainstorming
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

Explain what you are going to do and how you want the team to
behave
Suggest how long you want to spend on the process. Agree what
you will do if the group wants more tim e
Write the problem clearly at the top of a flip chart page
Ask each person present in turn for an idea
Thank each person for each idea or repeat it
Write the idea on the chart in their words
Write all ideas with the same weight
Allow no comments on any ideas and no side discussions
If someone has no idea ready move on to the next person
Start a new flip chart page regularly display each previous page on
wall
Continue until ideas dry up.
Pause
Repeat cycle again until ideas dry up
Pause
Ask if anyone would like clarification of any of the ideas
• Benchmarking
Analyze
Measure
• Brainstorming
• Benchmarking
• DOE
Improve
Select
Solutions
• Impact Grid matrix
• Voting (weighted)
Control
Implement
Solutions
• Implementing Change
• PLANNING
Implementing Change
• Criteria Screening
• Impact Grid matrix
• N/3
• Cost Benefit Analysis
• Voting
• DOE
QUALITY
ACCEPTANCE
10
10
• Pilot
EFFECTIVENESS
100
• PLANNING
• FMEA
• Pilot
• Leading Change
Strategy
• Kaizen
• Poka-Yoke
The Process DMAIC
Define
Monitor
• Control Charts/ Run charts
Measure
Analyze
Standardize
& Document
• Systems & Structures
Response Plan

Clause 8.4 Analysis of data
...determine, collect and analyze appropriate
data ...to evaluate where continual
improvements can be made.
Clause 8.5.1 Continual Improvement
...continually improve the effectiveness of the
QMS through the use of analysis of data,
corrective and preventative actions and
management review
Clause 8.5.3 Preventative Action
The organization shall determine action to
eliminate the causes of potential nonconformities in order to prevent their
occurrence
• Measurement system
• Control Charts
• Run charts
Measure
Analyze
Improve
The degree to
which a set of
inherent
characteristics
fulfils
requirements
Y = f (x)
The response plan indicates in
advance how to respond to events
such as





Process output changes
Inputs out of specification
Delays in implementation
Changes in resource
Conflict
Control
• Standards
• Procedures
• HP
• Audits
• Systems & Structures
Project
Closure
• Project hand-over
• Response Plan
Continuous Improvement Process
Clause 8.2.3
Monitoring & Measurement of Processes
Control
Response
Plan
Use of QMS to Sustain Gain
Quantify
Improve
• Control Plan
• FMEA
• Control Plan
• Process
behavior
chart
• Closure Checklist
Project Closure Checklist


You must be able to
leave a project once
you have started one.
Use the following
process to close your
project


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







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




Project Goal
Project Benefits
Finance – budget /savings
Savings in website & FMS
Report
Recommendations / spin off
projects
+/delta feedback on your style
Leave behinds / tidy up
Team release you
Champion to close charter and
formally release the team
Communicate Success
• Project
storyboard
• Project report
Projects
database
• Closure
Checklist
• Project handover
In Short





Define the problem and objective
Collect data and ensure it is factual
Identify the root cause of the problem
Develop changes, test, validate and
implement solutions
Control and sustain the improvement
The Process DMAIC
This is just
THE BEGINNING!
The Process DMAIC
Lean Foundations
Continuous Improvement Training