lean six sigma an overview
DESCRIPTION
Lean Six Sigma An Overview. Agenda. What is Six Sigma What is Lean Thinking Lean Six Sigma and Change Lean Six Sigma Methodology Lean Six Sigma Organization Developing a Charter for Lean Six Sigma Project Lean Six Sigma Financial Benefits. “Safety is a Measure of Success”. - PowerPoint PPT PresentationTRANSCRIPT
“Safety is a Measure of Success”
Lean Six Sigma An Overview
What is Six Sigma
What is Lean Thinking
Lean Six Sigma and Change
Lean Six Sigma Methodology
Lean Six Sigma Organization
Developing a Charter for Lean Six Sigma Project
Lean Six Sigma Financial Benefits
“Safety is a Measure of Success”
AgendaAgenda
• Six Sigma as a metric– A process running at Six
Sigma quality level produces no more than 3.4 defective parts per million opportunities (DPMO).
– The variation in the process is reduced so that it does not produce defects 99.99966% of the time.
• Sigma (σ), a Greek letter, denotes standard deviation. • Six Sigma is a metric that measures the performance of
a process.
What is Six Sigma ? What is Six Sigma ?
“Safety is a Measure of Success”
Lower Specification Limit (LSL)
Upper Specification Limit (USL)
# o
f Go
als
Understanding and reducing variationUnderstanding and reducing variation
“Safety is a Measure of Success”
6-Sigma99.99966% Good
6-Sigma99.99966% Good
• 20,000 lost articles of mail per hour.
• 5,000 incorrect surgical operations per week.
• Two short or long landings at most major airports each day.
• 200,000 wrong drug prescriptions each year.
• Seven articles lost per hour.
• 1.7 incorrect operations per week.
• One short or long landing every five years.
• 68 wrong drug prescriptions per year.
3.8-Sigma99% Good3.8-Sigma99% Good
.
N
3.4 defects per million
opportunities
Based on U.S. statistics in the 1990s
Why to raise the quality standard ? Why to raise the quality standard ?
“Safety is a Measure of Success”
• Lean ideas originally developed in the United States (Ford Motors, 1914) and than widely used by Japanese (Toyota, 1950).
• Lean Thinking is also known as lean, lean production, lean manufacturing, Toyota production system (TPS), Just-in-time (JIT) etc.
• It is a common sense approach. • Lean is focused at eliminating the waste in the processes
that in return increases the speed, improves the quality, and reduces the cost.
What is Lean Thinking ?What is Lean Thinking ?
“Safety is a Measure of Success”
8 Wastes
Overproduction WaitingUnwanted Transportation
Over processing
Over InventoryUnwanted Movement
DefectsUnused Employee Creativity
Understanding Wastes
“Safety is a Measure of Success”
• Lean Six Sigma is a rigorous, disciplined, and data
driven business process optimization and problem
solving methodology which aims to reduce variability,
eliminate non-value added activities (waste), and reduce
cost.
• Lean Six Sigma is applicable to any process/activity and
it is well-proven methodology worldwide.
• Lean eliminates process wastes.
• Six Sigma reduces process variability and defects.
Lean Six Sigma DefinitionLean Six Sigma Definition
“Safety is a Measure of Success”
• In order to develop, sustain, and become competitive, we have to make changes.
• Lean Six Sigma is all about: – Changing the culture of an organization– Changing the processes to meet new customer requirements
and to remove constraints.
“Safety is a Measure of Success”
Lean Six Sigma is a physical transformation of the processes, and it is a transformation of the organizational cultural
Lean Six Sigma and ChangeLean Six Sigma and Change
Lea
n S
ix S
igm
a M
eth
od
olo
gy
Characterization
Optimization
Phase 2Measure
Phase 3Analyze
Phase 4Improve
Phase 5Control
Phase 1Define
Practical Problem
Analytical Problem
Analytical Solution
Practical Solution
MeasureDefine ImproveAnalyze Control
Lean Six Sigma MethodologyLean Six Sigma Methodology
DMAIC
“Safety is a Measure of Success”
• Define the problem. • Identify the customer(s). • Organize the team and define its roles and responsibilities. • Establish goals and milestones.• Establish the scope of the LSS project. • Define the metrics. • Map the process. • Develop data collection plan.
What is important to customers OR business goals?
COMMUNICATION
Define PhaseDefine Phase
“Safety is a Measure of Success”
• Collect data on current process. • Confirm the customer’s needs, and expectation. • Validate measurement system. • Determine input variables (X’s) that may impact
output (Y’s).• Establish baseline measurement of current process.
How is the process performing? How does it look / feel like to the customer? How good is the data?
COMMUNICATION
Measure PhaseMeasure Phase
“Safety is a Measure of Success”
• Narrow the focus to specific issues. • Develop a mechanism to analyze data.• Identify what is causing defects, waste and variation.
Characterize the variables (X’s).• Find improvement opportunities.• Based on data analysis, revisit problem statement and
assess the need to further scope the issues.
40E
Graphical Analysis Tools – Box Plot
5 6 7 8 9 10 11 12 13 14
What are the most important causes of process waste, defects & variation?
COMMUNICATION
Analyze PhaseAnalyze Phase
“Safety is a Measure of Success”
• Validate hypothesis about the root cause of the problem
• Identify critical variables (X’s)
• Identify alternate solutions
• Determine optimal solution
• Perform cost/benefit analysis
• Design improvements
• Pilot improvements
• Implement and validate improvements
Move the mean. Shrink the variance. Eliminate the waste.
COMMUNICATION
Improve PhaseImprove Phase
“Safety is a Measure of Success”
• Ensure corrective actions are taken.
• Mistake-proof the process.
• Transition the control of the new process to the process owner.
• Provide techniques to sustain the improvements.
• Measure the final capability.
• Monitor performance. How can we maintain the process improvements?
7.5
8.5
9.5
10.5
11.5
12.5
0 10 20 30
COMMUNICATION
Control PhaseControl Phase
“Safety is a Measure of Success”
•Own the vision, direction, integration, and results. •Identify Black Belts/Green Belts, and help in project identification.
Champions
•Identify and assist in scoping projects.•Own the process.•Ensure changes are sustained.
Process Owners
•Apply Lean Six Sigma to specific projects•Lead and direct teams to execute projects
Black Belts Green Belts
Lean Six Sigma Organization Lean Six Sigma Organization
Roles & Responsibilities
“Safety is a Measure of Success”
5 W and 2 H problem identification approach
Who? Identify customers complaining about the problem
What? Define the problem accurately
When? Timing - When did the problem start?
Where? Location - Where is it occurring?
Why? Identify the causes (5 WHYs)
How? In what mode the problem occur
How many? Magnitude or frequency of the problem
Developing the project charter Developing the project charter
Example
Problem Statement: • On-time delivery performance of all ABC units is only 60%. This
results in customer complaints and shipment rejections that in turn increases the inventory levels.
Goal: • Improve on-time delivery to 95% by the end of June 2009.
“Safety is a Measure of Success”
• Customer focus, self-motivated and positive personality • Leadership skills • Excellent communication and presentation skills• Project management skills • Process and product knowledge is preferred • Team player • Result oriented • Data mining • Passionate • Patience • Learner
Lean Six Sigma Practitioner QualitiesLean Six Sigma Practitioner Qualities
“Safety is a Measure of Success”
• Inadequate management support.
• Inadequate time for Green Belts/ Black Belts and other team
members .
• Project Scope Is Too large
• “Boiling the ocean”
• Project Scope Is Too small
• Projects with little business impact.
• Solution-in-Mind
• “Just Do It” projects do not require the rigors of the LSS DMAIC process.
• Data not available or not valid.
• Lack of “soft skills” (communication, leadership, team building,
and change management).
Common Causes of Project FailuresCommon Causes of Project Failures
“Safety is a Measure of Success”
Output Variation in weeks
Existing Process
Process Mean
501 100
Customers Remember the Extremes (Variation), not the Average
Improved Process
Example: Work Order Process Example: Work Order Process
“Safety is a Measure of Success”
• From 1986 – 2001, Motorola saved $16 billions.
• From 1996 – 1999, GE saved $4.4 billions.
• From 1998 – 2000, Honeywell saved $ 1.8 billions.
• From 2000 - 2000 Ford saved $1 billion.
• Over the past 20 years Six Sigma saved Fortune 500 companies an estimated $427 billion.
Lean Six Sigma and Financial BenefitsLean Six Sigma and Financial Benefits
“Safety is a Measure of Success”
Safety is a Measure of Success
“We are what we repeatedly do. Excellence then, is not an act, but a habit.”
~ Aristotle, 4th century BC Greek philosopher
Thank You