Transcript Lean vs. Six Sigma

Lean vs. Six Sigma
Learning Objectives
1. Understand DMAIC and Lean Methodologies.
2. What are the differences between Six Sigma and
Lean?
3. What are the tools used for Six Sigma and Lean?
4. Where are Six Sigma and Lean Methodologies
used?
Lean vs. Six Sigma 2 .PPT
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Six Sigma Basic Premise
Outputs
(CTQ)
Inputs
Do you know what is important to customers?
Do you know what “Xs” are important to
meet customer needs?
How do the “Xs” drive outcomes,
revenue, and cost?
Lean vs. Six Sigma 3 .PPT
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Six Sigma DMAIC Methodology
Define
Develop Project Charter
Determine Customers & CTQs
Map High-Level Process
Measure
Establish and Measure Ys
Plan for Data Collection
Validate Measurement System
Measure Baseline Sigma
Identify Possible Xs
Analyze
Test Hypotheses
List Vital Few Xs
Improve
Select the Solution
Design Solution, Controls, and Design for Culture
Prove Effectiveness
Control
Lean vs. Six Sigma 4 .PPT
Identify Control Subjects
Develop Feedback Loops
Develop Process Control Plan to Hold the Gains
Implement, Replicate
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Six Sigma Methodology
Statistical Solution
Practical Solution
Process
Characterization
Statistical Problem
Define
Process
Optimization
Practical Problem
Measure
Y
Analyze
Improve
Xs
Control
Goal: Y = f ( x )
Lean vs. Six Sigma 5 .PPT
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Sources of Variation
y
Poor Design
Changing Needs
Measurement System
Insufficient Process
Capability
Skills & Behaviors
x
Lean vs. Six Sigma 6 .PPT
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Lean Methodology
Define
Value
Measure
Value
Analyze
Process - Flow
Improve
Process - Pull
Control
Process
Lean vs. Six Sigma 7 .PPT
Define Stakeholder Value and CTQs
Define Customer Demand
Map High-level Process
Assess for 6S Implementation
Measure Customer Demand
Plan for Data Collection
Validate Measurement System
Create a Value Stream Attribute Map
Determine Pace, Takt-time and Manpower
Identify Replenishment and Capacity Constraints
Implement S1-S3
Analyze the Value Stream Attribute Map
Analyze the Process Load and Capacity
Perform VA/NA Decomposition Analysis
Apply Lean Problem Solving to Solve for Special Causes
Conduct the Rapid Improvement Event
Design the Process Changes and Flow
Feed, Balance, Load the Process
Standardize Work Tasks
Implement New Processes
Stabilize and Refine Value Stream
Complete Process and Visual Controls
Identify Mistake-proofing Opportunities
Implement S4-S6
Control Plan, Monitor Results, and Closeout Project
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Why Define a Process as a Value Stream?
A Value Stream
 Focuses attention on what is important for the customer.
 Identifies all the necessary components to bring a product or
service from conception to commercialization.
 Identifies waste inherent in processes and works to remove
it.
 Reduces defects in products and deficiencies in processes.
 Focuses on improving specs and cost.
Lean vs. Six Sigma 8 .PPT
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What Is Typically Found
Lean Value Stream Management starts with defining
value in terms of products and process capabilities
to provide the customer with what they need at the
right time and at an appropriate price.
Non-value
added/waste
Value
added
Lean vs. Six Sigma 9 .PPT
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The Eight Wastes
adapted from Taiichi Ohno
1. Overproduction—making or doing more than is required or
earlier than needed.
2. Waiting—for information, materials, people, maintenance, etc.
3. Transport—moving people or goods around or between sites.
4. Poor process design—too many/too few steps, nonstandardization, inspection rather than prevention, etc.
5. Inventory—raw materials, work-in-progress, finished goods,
papers, electronic files, etc.
6. Motion—inefficient layouts or poor ergonomics at workstations or in offices.
7. Defects—errors, scrap, rework, non-conformance.
8. Underutilized personnel resources and creativity—ideas
that are not listened to, skills that are not utilized.
Lean vs. Six Sigma 10 .PPT
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History of Lean
US war
production
 Large quantities
 Rapid pace
 High training
TPS
JIT
 Toyota
 Ohno and
 Just-in-Time
Shingo
 Schonberger
 Flow of work
“Japanese
 Small batch
 Womack “Mach.
Mfg
sizes
Changed World”
Techniques”
 New philosophy
 Eliminate Waste
 Takes TPS
 Added to 6s tool
and imports  Improve
performance
kit
to US
 Flexibility
Lean
Lean 6s
1940
1952
Lean vs. Six Sigma 11 .PPT
1964
1980
1990
2000
2008
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The Methods
Results
Methods
Lean
&
Six
Sigma
Lean vs. Six Sigma 12 .PPT
Improve Speed
Higher Quality
Lower Costs
Sustain Performance
Culture Change
Achieve Breakthrough
Dashboard Results
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How to Think About Improvement
The Juran Trilogy ®
Plan
Control
Improve
DFSS
RCCA
Lean Six Sigma
Lessons Learned
Sporadic Spike
Breakthrough
Chronic Waste
Six Sigma
& Beyond
COPQ
Time
Accelerated Change Management Support
Lean vs. Six Sigma 13 .PPT
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Matching Improvement Process to Need
Small Gains or
Clear Solution
Change
Management
Lean vs. Six Sigma 14 .PPT
Medium
Gains
Plan, Do,
Study, Act
(PDSA)
Large
Gains
Lean &
Six Sigma
DMAIC
Launch New
Product,
Service, or
Process
Design for
Lean
Six Sigma
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Lean and Six Sigma
Define
Value
Measure
Value
Analyze
ProcessFlow
Improve
ProcessPull
Control
Process
LEAN = Improvement principles focused on
dramatically improving process speed and eliminating
the eight deadly wastes.
Define
Measure
Analyze
Improve
Control
SIX SIGMA = Breakthrough Process, Design, or
Improvement Teams focused on eliminating chronic
problems and reducing variation in processes.
Lean vs. Six Sigma 15 .PPT
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Lean Project Attributes
Simply stated: “Lean is about moving the Mean.” It
focuses on efficiency.
 Lean reduces average cycle time.
 Lean reduces excess inventory.
 Lean improves average response time.
Improvement
Lean vs. Six Sigma 16 .PPT
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Six Sigma Attributes
Simply stated: “Six Sigma is about Reducing Variation.” It
focuses on Effectiveness. The mean will most likely also be
improved.
 Decrease defect rate
 Increase Process Yield
Improvement
Lean vs. Six Sigma 17 .PPT
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Lean and Six Sigma
Lean = Rapid Improvement Teams focused on dramatically improving
process speed, and the elimination of the eight deadly wastes.
Define
Value
Measure
Value
Analyze
ProcessFlow
Improve
ProcessPull
Control
Process
IMPROVED
EFFICIENCY
Six Sigma = Breakthrough Process Improvement Teams focused on
eliminating chronic problems and reducing variation in processes.
Define
Lean vs. Six Sigma 18 .PPT
Measure
Analyze
Improve
Control
IMPROVED
EFFECTIVENESS
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Lean Six Sigma
Lean Six Sigma is an approach to integrating the power of Six
Sigma Tools and Lean Enterprise Tools which can be applied
within an organization to create the fastest rate of
improvement, maximize shareholder value, and increase
customer delight.
Define
Value
Measure
Value
Analyze
ProcessFlow
Improve
ProcessPull
Control
Process
Define
Measure
Analyze
Improve
Control
Lean vs. Six Sigma 19 .PPT
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Which Technique to Begin With?
 It is often advantageous to begin with Lean projects.
– These are easier to understand and implement.
 Begin with streamlining processes and Rapid Improvement
Events.
– This gets the operation in good order.
– Chronic problems are now easier to deal with.
– “Low Hanging Fruit” is eaten.
 Next, select Six Sigma projects
Other Reasons to Begin Lean?
Lean vs. Six Sigma 20 .PPT
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Lean Projects
Use Lean when you are trying to streamline any process and
reduce process waste.
 Improve assembly line throughput
 Reduction in Finished Goods Inventory
 Reduce the time to process new proposals
 Reduce machine setup time
 Improve order processing time
Lean vs. Six Sigma 21 .PPT
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Six Sigma Projects
Use Six Sigma where process metrics are more difficult to
collect or understand, and project success requires analysis of
multiple input factors (Xs). These are often chronic problems.
 Improve yield on a continuously running machine
 Reduce defects on a machine with multiple inputs and
machine settings
 Reduce the amount of wait time for a call center
 Improve the number of quality new hires
Lean vs. Six Sigma 22 .PPT
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Mixed Projects
What happens when you start a Six Sigma Project and it turns
into a Lean project?
 It is all about the correct tools.
 Use the Lean tools for project success.
What happens if a Lean project turns into Six Sigma?
 Depending when this is discovered, it may mean going
back to utilize some Six Sigma tools before proceeding.
Lean vs. Six Sigma 23 .PPT
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