introduction to the quality philosophy: lean six sigma
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Introduction to the Quality Philosophy: Lean Six Sigma. Presented by Dr. Joan Burtner Certified Quality Engineer Associate Professor of Industrial Engineering and Industrial Management. Why Do We Need Lean Six Sigma?. - PowerPoint PPT PresentationTRANSCRIPT
Introduction to the Quality Introduction to the Quality Philosophy:Philosophy:
Lean Six SigmaLean Six Sigma
Presented by Dr. Joan BurtnerPresented by Dr. Joan Burtner
Certified Quality Engineer Certified Quality Engineer
Associate Professor ofAssociate Professor of
Industrial Engineering and Industrial Industrial Engineering and Industrial ManagementManagement
ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 2
Why Do We Need Why Do We Need Lean Six Sigma? Lean Six Sigma?
““Lean Six Sigma is a methodology Lean Six Sigma is a methodology that maximizes shareholder value that maximizes shareholder value by achieving the fastest rate of by achieving the fastest rate of improvement in customer improvement in customer satisfaction, cost, quality, process satisfaction, cost, quality, process speed, and invested capital”. speed, and invested capital”.
((Lean Six SigmaLean Six Sigma, Michael George, , Michael George, p. 13)p. 13)
ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 3
The Six Sigma Approach The Six Sigma Approach in the Business in the Business
CommunityCommunity
DefinitionDefinition• a comprehensive and flexible system for a comprehensive and flexible system for
achieving, sustaining and maximizing business achieving, sustaining and maximizing business successsuccess
DriversDrivers• a close understanding of customer needs a close understanding of customer needs • disciplined use of facts, data, and statistical disciplined use of facts, data, and statistical
analysisanalysis• diligent attention to managing, improving, and diligent attention to managing, improving, and
reinventing the business processreinventing the business process
ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 4
Six Sigma ApplicabilitySix Sigma Applicability
Six Sigma has been successfully applied in Six Sigma has been successfully applied in manufacturingmanufacturing environments (eg Motorola). environments (eg Motorola).
Six Sigma has been successfully applied in the Six Sigma has been successfully applied in the serviceservice sector (eg GE Capital). sector (eg GE Capital).
More recently, Six Sigma has shown to be More recently, Six Sigma has shown to be exceptionally effective in exceptionally effective in educationaleducational settings. settings. • Eligible for Malcolm Baldrige National Quality Eligible for Malcolm Baldrige National Quality
Award Award • MBNQA awarded to two school districts in 2001MBNQA awarded to two school districts in 2001
ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 5
The Six Sigma PhilosophyThe Six Sigma Philosophy
Designed to foster data-driven Designed to foster data-driven management decisionsmanagement decisions
The Three C’sThe Three C’s• common metricscommon metrics• ““constant” communicationconstant” communication• culture changeculture change
ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 6
Six Sigma MetricsSix Sigma Metrics
cost reduction cost reduction productivity improvement productivity improvement market-share growth market-share growth customer retentioncustomer retention cycle-time reduction cycle-time reduction defect reduction defect reduction culture change culture change product/service development product/service development
ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 7
Six Sigma Management Six Sigma Management ApproachApproach
Genuine Focus on the CustomerGenuine Focus on the Customer Data- and Fact-Driven ManagementData- and Fact-Driven Management Process FocusProcess Focus Proactive ManagementProactive Management ““Boundaryless” CollaborationBoundaryless” Collaboration Pursue Success; Tolerate FailurePursue Success; Tolerate Failure
ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 8
Six Sigma Inputs and Six Sigma Inputs and Techniques Techniques
Voice of the CustomerVoice of the Customer Voice of the Market Voice of the Market Failure Mode and Effect AnalysisFailure Mode and Effect Analysis Cause and Effect DiagramsCause and Effect Diagrams Design of ExperimentsDesign of Experiments BenchmarkingBenchmarking House of QualityHouse of Quality
ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 9
Guidelines for Guidelines for Determining Six Sigma Determining Six Sigma
MetricsMetrics
Consider ways to measure Service as Consider ways to measure Service as well as Output factors.well as Output factors.
Practice continuous improvement of the Practice continuous improvement of the measurements.measurements.
Set measurement priorities that match Set measurement priorities that match resources (Prioritize for maximum resources (Prioritize for maximum potential gain.)potential gain.)
Stop measurements that are not needed Stop measurements that are not needed or useful.or useful.
ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 10
Selection of Six Sigma Selection of Six Sigma Improvement ProjectsImprovement Projects
There is a gap between current and There is a gap between current and desired/needed performance.desired/needed performance.
The cause of the problem is not clearly The cause of the problem is not clearly understood.understood.
The solution isn’t predetermined, nor is The solution isn’t predetermined, nor is the optimal solution apparent.the optimal solution apparent.
ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 11
Implementation of Six Implementation of Six Sigma Improvement Sigma Improvement
ProjectsProjects
Start small; don’t go for large scale Start small; don’t go for large scale changes at firstchanges at first
Select several well-defined projectsSelect several well-defined projects Expand projects after early Expand projects after early
successes are accomplishedsuccesses are accomplished
ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 12
Lean Enterprise Lean Enterprise
General term for the application of General term for the application of lean principles lean principles
Widespread success in Widespread success in manufacturing during past 15 years manufacturing during past 15 years
More recently - applied to More recently - applied to transactional endeavors - billing, transactional endeavors - billing, customer service, etc.customer service, etc.
Represents a culture change Represents a culture change
ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 13
Evolution of Lean Evolution of Lean ManufacturingManufacturing
Total Quality ManagementTotal Quality Management Toyota Production System Toyota Production System Six Sigma Process ImprovementSix Sigma Process Improvement Theory of ConstraintsTheory of Constraints Value Stream MappingValue Stream Mapping Womack and Jones - Womack and Jones - Lean ThinkingLean Thinking Rother and Shook - Rother and Shook - Learning to SeeLearning to See
ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 14
Wasteful PracticesWasteful Practices
WaitingWaiting TransportationTransportation OverproductionOverproduction ProcessingProcessing InventoryInventory MotionMotion Defective ProductsDefective Products
ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 15
Lean PrinciplesLean Principles
Pull instead of push scheduling Smaller batch sizes Shorter process times Value-added vs. non value-added Standard work
ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 16
Lean TechniquesLean Techniques
Line balancing One-piece flow Cellular layouts Value-added vs. non value-added Value stream mapping 5S Kaizen
ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 17
Introduction to the 5S’s - 1Introduction to the 5S’s - 1
SEIRI
(SIMPLIFY)
DISTINGUISH BETWEEN WHAT IS NEEDED AND KEPT AND WHAT IS UNNEEDED AND THROWN OUT
SEITON
(STRAIGHTEN)
ORGANIZE THE WAY WE KEEP NECESSARY THINGS, MAKING IT EASIER TO FIND AND USE THEM
ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 18
Introduction to the 5S’s - 2Introduction to the 5S’s - 2
SEISCO
(SCRUB)
KEEP FLOORS SWEPT, MACHINES CLEAN, AND ALL AREAS NEAT AND TIDY
SEIKETSU
(STABILIZE)
MAINTAIN AND IMPROVE THE STANDARDS OF THE FIRST THREE S’S
SHITSUKE
(SUSTAIN)
ACHIEVE THE HABIT OF PROPERLY MAINTAINING THE CORRECT 5S PROCEDURES
ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 19
Kaizen of an Assembly Kaizen of an Assembly Line 1Line 1
Before After
ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 20
Standard Work Flow Standard Work Flow DiagramDiagram
Used to help identify the flow of Used to help identify the flow of the operation(s) the operation(s)
Used as a layout for developing Used as a layout for developing an improved processan improved process
An excellent tool to use to An excellent tool to use to develop standard work develop standard work proceduresprocedures
ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 21
Cellular Layout ConceptCellular Layout Concept
The arrangement of manufacturing work The arrangement of manufacturing work cells to allow for a flowing processcells to allow for a flowing process
Eliminates the need for large inventory Eliminates the need for large inventory batchesbatches
In theory, the parts enter the beginning In theory, the parts enter the beginning of the cell as raw materials and exit the of the cell as raw materials and exit the cell as completed unitscell as completed units
ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 22
Value Stream MappingValue Stream Mapping
Learning to SeeLearning to See Hand-drawings preferredHand-drawings preferred Current state mapCurrent state map Future state mapFuture state map Man, machines, inventory,times, flow Man, machines, inventory,times, flow
combined into one graphiccombined into one graphic See example from ISE Capstone Design See example from ISE Capstone Design
CourseCourse
ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 23
Mapping the Current Mapping the Current StateState
ISE Project for a Local ManufacturerISE Project for a Local Manufacturer
ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 24
Lean Metrics (Quantitative)Lean Metrics (Quantitative)
Lead-times Lead-times Inventory Inventory Inventory TurnsInventory Turns Work In Process Work In Process Workable Floor Space Workable Floor Space Efficiency Efficiency Cycle TimeCycle Time
ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 25
Selection of Lean ProjectsSelection of Lean Projects
Use potential increase in net present Use potential increase in net present value to select which value stream to value to select which value stream to investigate firstinvestigate first
Analyze value stream map for Analyze value stream map for customers’ critical to quality issuescustomers’ critical to quality issues
Analyze value stream map for time Analyze value stream map for time trapstraps
Choose specific projects on the basis Choose specific projects on the basis of highest rate of returnof highest rate of return
ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 26
Proposition 1Proposition 1
Reducing process lead times and Reducing process lead times and variation in the time it takes to variation in the time it takes to complete a process has just as complete a process has just as much potential for improving a much potential for improving a company’s performance as company’s performance as reducing variation in quality. reducing variation in quality. (Lean Six Sigma, Michael George)(Lean Six Sigma, Michael George)
ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 27
Propositions 2 and 3Propositions 2 and 3
Lean and Six Sigma are Lean and Six Sigma are inextricably linked as partners in inextricably linked as partners in cost reduction, lead time, and cost reduction, lead time, and quality improvement.quality improvement.
Lean produces remarkable Lean produces remarkable successes -- but only in small successes -- but only in small pockets of activitypockets of activity
(Lean Six Sigma, Michael George)(Lean Six Sigma, Michael George)
ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 28
Proposition 4Proposition 4
Lean and Six Sigma should be Lean and Six Sigma should be applied together becauseapplied together because• A stand-alone Six Sigma program A stand-alone Six Sigma program
cannot dramatically increase process cannot dramatically increase process speed or decrease invested capitalspeed or decrease invested capital
• A lean enterprise that focuses on A lean enterprise that focuses on eliminating waste will not bring a eliminating waste will not bring a process under statistical controlprocess under statistical control
ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 29
Proposition 5Proposition 5
Some people believe lean enterprise methodologies must be completed before Six Sigma gains can be maximized.
James Bossert , July 2003 “Lean and Six Sigma--Synergy Made in Heaven” Quality Progress.
ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 30
Discussion of PropositionsDiscussion of Propositions
Audience members who support Six Sigma
Audience members who support Lean
Audience members who support neither philosophy
ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 31
AcknowledgementsAcknowledgements
Clyde Ingram, Rheem Manufacturing Clyde Ingram, Rheem Manufacturing Lean Training MaterialsLean Training Materials
Laura Brown, Industrial Engineering Laura Brown, Industrial Engineering Co-op StudentCo-op Student
Students enrolled in ISE 482 Senior Students enrolled in ISE 482 Senior Industrial Engineering Capstone Industrial Engineering Capstone DesignDesign
Mike Dunn, Bassett Furniture Lean Mike Dunn, Bassett Furniture Lean Project MaterialsProject Materials
ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 32
References and References and Recommended ReadingsRecommended Readings
George, Michael. (2002). Lean Six Sigma: Combining Six Sigma Quality with Lean Speed, New York: McGraw-Hill.
Rother, M. and Shook, J. (2003). Learning to See: Value Stream Mapping to Create Value and Eliminate Muda, Brrookline, MA: The Lean Institute.
Pande, P, Neuman,R.P., and Cavanagh,R.R. (2000). The Six Sigma Way, New York:McGraw Hill.
Bossert , James. ( July 2003) “Lean and Six Sigma--Synergy Made in Heaven” Quality Progress.
Goldratt, Eliyahu M., (1994). The Goal: A Process of Ongoing Improvement, second edition. Great Barrington, MA: North River Press.
Womack, James P. and Daniel T. Jones. (2003). Lean Thinking: Banish Waste and Create Wealth in Your Corporation. New York: Simon & Schuster.
ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 33
Contact InformationContact Information
[email protected][email protected] Mercer University Mercer University
School of Engineering School of Engineering Macon, GA Macon, GA
Phone (478) 301- 4127Phone (478) 301- 4127 Fax (478) 301- 2331Fax (478) 301- 2331