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Alex TeohPrincipal Consultant
Lean Sigma Institute
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Lean or Six Sigma?Which One First?
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Two most recognized productivity
improvement platforms
by world class companies around
the world
LEANLEAN SIX SIGMASIX SIGMA
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Billions Dollars Club
LEANLEAN SIX SIGMASIX SIGMATOYOTATOYOTA
Wiremold
LantechBoeing
Solectron
MOTOROLAMOTOROLA
GE
DuPontHoneywell
Kodakmore to the lists
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Key Points Summary
1 2 3
Six SigmaLean Lean Sigma
Lean Benefits
Key Tools
Success Factors
Challenges
6 Sigma Benefits
Key Tools
Success Factors
Challenges
LeanSigma
LSS X-plan
LSS Speed Loop
Benefits
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LEAN BENEFITS:
y Deploying effective ways to eliminate WASTEWASTE(Non Value Added) with the goal of
- reducing process cycle timesprocess cycle times- improving delivery performancedelivery performance
- reducing cost of operationcost of operation
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LEAN TOOLS5S Workplace
Value Stream MappingKaizen
Work Standardization
Demand/Load Leveling
Visual Management
Employee Involvement
One Piece Flow
Cellular ProductionPull Production
Poka-Yoke
Quick Changeover
Total Productive Maintenance
Supply Chain Management
not complete list
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LEAN SUCCESS
lies in
finding the Effective Waysto eliminate wastes
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5Q that influence success5S Workplace
Cellular Production
Value Stream Mapping
Pull Production
Poka-YokeQuick Changeover
Demand/Load Leveling
Visual Management
Employee Involvement
Total Productive Maintenance
Which one to use?How to use?
How often?
Partial or full impact?
Who is leading?
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LEAN CHALLENGESy Process Incapability and Instability
y Demand Fluctuation
y People Issues
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SIX SIGMA BENEFITS
y Using statistical techniques to understand,
measure and reduce process VARIATIONVARIATIONwith primary goal of
- reducing process variationprocess variation- reducing defectsdefects
- reducing cost of poor qualitycost of poor quality
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SIX SIGMA BENEFITS:
Critical Process Stability
Simplified ProcessReliability & Stability
Defect Reduction
Yield Improvement
Cost Saving
Customer Satisfaction
Bank Of America
report at ISSP Conference 2003
- Reduction in DPMO from 4500 to 1000
- 25% reduction in check sorter
Raytheon Aircrafts IT Department
reported in CIO magazine
improvement in claims processing
resulting USD13million savings
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SIX SIGMA ToolsProcess Mapping
SIPOCCTQ
SPC
FMEA
DOE
QFD
DFSS
Cost of Quality
ANOVAMulti-Variance
Hypothesis Testing
RegressionStatistical Tools
MSA Gauge RR
Root Cause Analysis
Not complete list
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SIX SIGMA SUCCESS
lies in
Expert application of
Statistical Toolsto eliminate process variation
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5Q that determine success
Which one to use?
How to use?
How often?
Partial or full impact?
Who is leading?
Process Mapping
SIPOC
SPC
FMEA
DOE
QFD
MSA Gauge RR
ANOVA
Multi-Var and Hypothesis
Regression
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SIX SIGMA CHALLENGES
y Dedicated Black Belt Program
y Long Project Duration
y Candidate Issues
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orLEAN SIX SIGMA
Which one is for you?Which one is for you?
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COMPARISON
Lean Six Sigma
Theme of Reduction Waste VariationKey Justification Speed 3.4 DPMO
Saving from OpCost CoPQ
Enhance Value Delivery Quality
Phase 1 Learning Curve Short Long
Technicality Moderate High
Project Leadership Kaizen Black Belt
Lean Six Sigma
Theme of Reduction Waste VariationKey Justification Speed 3.4 DPMO
Saving from OpCost CoPQ
Enhance Value Delivery Quality
Phase 1 Learning Curve Short Long
Technicality Moderate High
Project Leadership Kaizen Black Belt
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Seeking a suitable
IMPROVEMENT
PLATFORM
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Integrating Lean and Six Sigma
Lean Sigma
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Lean
Speed
6 Sigma
Qualitycombine
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D I F F E R E N C E
80% of problems come from 20% of the causes
LEAN SIGMA via Pareto Principle
y By employing the Paretos 80/20 rules
y 80% of benefits can be derived via
application of 20% of the tools at one time
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Tools Selection
Improvement Execution
Opportunity Analysis
LeanSigma X-Plan
Roll-Out Plan
LEAN SIGMA Speed LoopSearch & Select
DMAIC
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LeanSigma X-Plan
Standardized
Work
Visual
Controls
5S
Workplace
Employee
Involvement
Quick
Changeover
Batch
Reduction
Cellular/
LayoutPoka-Yoke
Technology
People
Level Load/
Balanced FlowTPM
Pull/
KanbanSix SigmaSystem
VSMMTS VoCValue Analysis ABC
IT
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LEAN SIGMA unique features
y
Rapid Deploymenty Clear Targets
y
Higher Improvement Yieldy Higher Improvement Pace
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Benchmark Result84 companies across 23 industries
Lean SigmaSix Sigma
Others
0%
5%
10%
15%
20%
25%
30%
35%
40%
38% Preferred Lean Sigma
29% Pursuing Six Sigma
33% Other Approaches
Source : Best Practice llc
Insights for implementing Lean and Six Sigma and
other productivity platform Survey authorized by
Global Benchmarking Council. August 2003www3.best-in-class.com/dr97.htm
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WHO IS PURSUING
LEAN SIGMA?
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The End
Thank You
Lean Sigma Institute
Penang
Tel:604-656 6722
Fax:604-659 9800
KL
Tel:603-9012 3014
Fax:603-9100 2016
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Q U E S T I O N SQ U E S T I O N S
A N S W E R SA N S W E R S