Breakthrough Performance Group, LLC © 2003-2017 All Rights Reserved

Data driven

customer focused

problem solving methodologies

continuously improving

measurable performance issues.

Quality:◦ is defined by the ultimate customer

◦ means something different to each person

◦ webster.org defines quality as:

“…distinguishing property, characteristic, or attribute; peculiar power, capacity, or virtue; distinctive trait…adegree or grade of excellence or worth..”

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Quality Management:◦ a method for ensuring that all activities necessary

to design, develop and implement a product or service are effective and efficient with respect to the system and its performance

Middle ages

Industrial revolution

World War II – TWI (Training Within Industry)

Deming & Juran

Early Japanese practitioners

Quality Circles

Total Quality Management

Six Sigma

Lean

Started in Manufacturing

Today practiced in◦ Healthcare

◦ Financial services

◦ Government

◦ Education

◦ Distribution

◦ Retail

◦ Not for profit

A systematic, continuous improvement approach to help drive value to the customer through flow improvement and waste elimination

Also known as the Toyota Production System (TPS)

Flow is impacted by◦ overburdened, unreasonable workloads

◦ unevenness, inconsistent workloads for workers and machines

Defects, Scrap, Rework

Overproduction

Waiting

Not Fully Utilizing People

Transportation

Inventory

Motion

Excess Processing

◦ Customer Satisfaction

◦ One Piece Flow, Pull, Just-in-Time

◦ Cycle Time = Takt Time

◦ Optimize the Value Stream

◦ Waste Elimination / Cost Reduction

◦ Continuous & Sustained Improvement

◦ Built-In Quality

◦ Cash Management & Preservation

◦ Flexibility & Responsiveness

◦ Reliability, Consistency & Predictability

◦ Respect for Humanity

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VSM (Value Stream Mapping)

Pull System / Kanban

5S / Visual Management

Kaizen

SMED / Changeover Reduction

TOC (Theory of Constraints)

Built in Quality (Jidoka)

Total Productive Maintenance

Error Proofing (Poka Yoke)

Target Costing

Cellular Organization

Team Building

Cross Training

Employee Engagement, Involvement & Development

Mutual Trust & Respect

Team Workshop Version

Value Stream Map

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Specify Value

Identify the

Value Stream

FlowCustomer

Pull

Pursue

Perfection

Lean Thinking – James Womack 1996, 2003

The basic idea of lean:◦ identify and eliminate non-value-

adding activities from every aspect of the business

Lean is making sure the customer gets:◦ what they want,

◦ when they want it,

◦ with minimum waste

The customer does not pay for waste, only value-added.

Three distinct meanings

◦ Statistical measure of performance

◦ Data driven systematic problem solving methodology

◦ Organizational strategy

A normal (bell curved) distribution is 6 standard

deviations wide! Most of the data is in the middle (+/-

1 standard deviation).

s s s sss

68.27%

95.45%

317,310 PPM

99.73%2,700 PPM

45,500 PPM

Sigma Percent Error

Free

DPMO

Historical

Standard

3 Sigma 93.32% 66,807

Current

Standard

4 Sigma 99.379% 6,210

5 Sigma 99.977% 233

New Standard 6 Sigma 99.9997% 3.4

BPG

s

• New Process, Product

or Service Design

Design for

Six Sigma

DFSS

• Redesign of Existing

Processes, Products

or Services

DMAIC

Improvement

DMADV

DMAI

C

Define

•Define the current problem

•Identify what’s important to the customer

Measure

•Determine what to measure as the Key Process Output Metric (KPOV)

•Quantify current process performance

•Estimate improvement targets

Analyze

•Analyze and statistically validate causes of variation and defects

•Commit to an improvement target for the Key Output metric

Improve

•Identify solutions to counteract major causes identified

•Implement solutions and provide statistical evidence that the solutions work

Control

•Put controls in place to maintain improvements over time

•Provide statistical evidence that the improvement is sustained

•Spread improvements throughout the organization

A high performance system for executing organizational strategy

Aligns strategy to critical improvement efforts

Creates a culture focused on customer satisfaction and continuous improvement

BPG

Upper Customer Specification Limits

(USL)

Process Performance at a Snapshot in Time

Lower Customer Specification Limits

(LSL)

CenterProcess

ReduceSpread

Off-Target Too Much Variation

Centered On-Target

Understand the customer requirements

Reduce process variation

Perform the process consistently time after time again while meeting customer expectations

The objective of Six Sigma is to reduce variation and move product or service outputs permanently inside customer requirements. Six Sigma:

◦ Applies standardized, proven methodology and tools

◦ Follows a reliable, time-bounded improvement process

◦ Unifies the organization with a common and consistent language

◦ Reduces fire fighting, where no long term gains or significant changes are achieved

◦ Defines a set of cross-functional business metrics to measure progress

◦ Delivers documented Financial Results

Lean and Six Sigma

Six Sigma Improvements• Higher level of analysis• Additional resources and

planning needed• In one word “Refine”

Lean Improvements• More easily identified• Moderate analysis• Low resource and planning needs

• In one word “Streamline”

Organizational Roles◦ Executive Leadership

Vision, Strategy, Champion

◦ Human Resources

Change Management, Team Building

◦ Corporate Director

Planning, Coordination

◦ Project Champion Team

Selection and Monitoring of Projects

◦ Project Teams

Execution of Projects

◦ Process Owner

• Manager/Supervisor of Project Issue/Area

◦ Master Black Belts

Mentoring, Coaching, Training

◦ Black Belts

Six Sigma Project Leaders

◦ Green Belts

Six Sigma Project Members

◦ Yellow Belts

SME’s and Project Members as Needed

◦ White Belts

Everyone Else in the Organization

Business Sponsor

Process Owner

Team Leader

Project members

Other Resources

(IT, Finance, HR)Master Black Belt

Voice of the Customer

(VOC)

Voice of the Employee

(VOE)

Voice of the Market (VOM)

Voice of the Business

(VOB)

Champion Team - Projects

VisionMission

StrategyTactics

GoalsMetrics

Align with Corporate

Incremental

Breakthrough

• Process (Tools)– Continuous Improvement– Quality & Customer Focus– Metrics & Statistical Analysis– Kaizen and DMAIC

• People (Culture)– Leadership & Communication– Mutual Trust & Respect– Team Based Systems & Teamwork– Employee Utilization & Engagement– Change Management

Customers

Organization

Employees

Suppliers

Lean Six Sigma is a high performance methodology that impacts and improves all organizations, processes, functions and disciplines, including leadership

Leadership is CTS, critical to the success of Lean Six Sigma initiatives which are critical to the success of the organization

All surviving and successful organizations in the future will embrace some form of Lean Six Sigma.

The early adopters will enjoy the greatest success and capture a greater share of the market.

Leadership makes the decision to start the process and leadership determines the success of a Lean Six Sigma initiative.

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