rdrew six sigma overview
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Lean Six SigmaOverview
Presented by Ron Drew, PMP
Presented by Ron Drew, PMP
W. Edwards Deming
“Eighty-Five percent of the reasons for failure to meet customer expectations are related to deficiencies in the Systems and Processes rather than employees.
The role of leadership is to change the process rather than badger individuals to do it better.”
Industry Snippets
What is Six Sigma
What gets measured gets improved!
Six Sigma is a business strategy• To remove variation in the processes• To improve the processes to:
• Raise Quality• Lower Costs• Make Customers More Satisfied
Six Sigma is a philosophy and mindset• It is Data-driven decision making• It is a Common Vocabulary
Six Sigma is a Statistical Measurement• Works on a statistical scale of Defects per Million (DPM)• It tells how good the products and services really are by designating the distribution about the average of any process or procedure
What is Six Sigma
Sigma Level Defects per Million (DPM) Effort to Improve 1 Sigma
One 691,462 2x
Two 308,538 4x
Three 66,807 10x
Four 6,210 27x
Five 233 116x
Six 2
Six Sigma Numbers
Most processes and companies operate at Three(3) capability
What is Six Sigma
Two Methodologies:
DMAIC – Defect reduction within an existing product or process.
DMADV – When a product or process is first being designed.
Define Measure Analyze Improve Control
Define Measure Analyze Design Validate
What is Six Sigma
DMAIC Overview
Define1. Project Charter2. Identify and validate customers’ needs and requirements3. Create a high level picture of the process targeted for improvement
Measure1. Create a data collection plan2. Implement plan and return with a baseline performance sigma
Analyze1. Examine the data2. Watch the process3. Determine root cause
Improve1. Generate Solutions2. Select Solutions3. Implement Solutions
Control1. Pick the right control method2. Document the response plan
50% of EVERY project should be spent in DM&A
What is Six Sigma
Define Phase of Lean Six Sigma
Define Phase of Lean Six Sigma
Define Phase of Lean Six Sigma
Measure Phase of Lean Six Sigma
Measure Phase of Lean Six Sigma
Measure Phase of Lean Six Sigma
Measure Phase of Lean Six Sigma
Lean Six Sigma Analyze Phase
Lean Six Sigma Analyze Phase
Lean Six Sigma Analyze Phase
Lean Six Sigma Analyze Phase
Lean Six Sigma Improve Phase
Lean Six Sigma Improve Phase
Lean Six Sigma Improve Phase
Lean Six Sigma Improve Phase
Lean Six Sigma Control Phase
Lean Six Sigma Control Phase
What is Six Sigma
Taiichi Ohno
“All we are doing is looking at a timeline from the moment the customer gives us an order to the point when we collect the cash.
And we are reducing that timeline by removing the non-value added wastes.”
Lean is the continuous focus on eliminating waste driven by customer satisfaction.
What is Lean?
Lean – Cycle Time (Kanban)
Lean is used to analyze and attack the lack of coordination, flow and waste
What is Lean?
Work/Value Add Time
Work/Non-Value Add Time
Work/Value Add Time
Work/Non-Value Add Time
Work/Value Add Time
Work/Non-Value Add Time
Work/Value Add Time
Work/Non-Value Add Time
Work/Value Add Time
Work/Non-Value Add Time
Work/Value Add Time
NVAT
Work/Value Add Time
Work/Value Add Time
Work/Value Add Time
Work/Value Add Time
NVAT
NVAT
NVAT
Before
After
Lean Principle: Spend resources to improve Kanban (Cycle Time)
Lead Time/Cycle Time
Five Principles of Lean
Specify Value Specify value from the standpoint of the end customer
Map the Value Stream Map all of the steps both value added & non-value added that
bring a product/service to the customer
Establish Flow Specify value from the standpoint of the end customer
Implement Pull Nothing is done by the upstream process until the
downstream customer signals the need
Pursue Perfection The complete elimination of waste so all activities create value for
the customer
What is Lean?
Specify Value
Value Added Process: Anything the customer is willing to PAY FOR
Three criteria MUST be met: Changes the shape or form of the process/product The customer cares about it It is done right the first time
Non-Value Added Process: Those process steps that take time, resources, or space but do
not add value to the product/service
Corporate compliance in included here, as a necessary, but non-value added step
Other examples: quality assurance and any “re” steps
What is Lean?
Map the Value Stream
Map all of the actions both value added and non-value added that are required to bring a product or service BACKWARDS from the customer to process initiation.
Elements Examines the product/document flow and information flow
Examines non-value added and wait time
Current State (AS-IS) and Future State (TO-BE) are developed using a standard unit of time
Site plans are developed to identity “Kaizen” (action workout) improvement opportunities
What is Lean?
Value Stream vs. Process Map
Process Mapping illustrates the steps in a process
Value Stream Mapping also tracks Material flow and material resource planning
Information flow (who needs to be notified)
Time Value Added Time materially changing the product/service Non-Value Added Time
Change-Over Time Wait Time Moving Time
What is Lean?
Establish Flow
What is Lean?
Producing one transaction at a time with each item passed immediately from one process step to the other without waiting.
Elements The work does not stop – make one, move one (identity and remove
the bottlenecks)
No inventory is created – no batching (inventory is a sign of bottlenecks)
Move away from departmental or functional processing of transactions – empower employees to make decisions
Implement Pull
What is Lean?
Pull systems are used to maintain level operations.
Some processes cannot be operated as a flow: Long distances between processes (look for co-location
opportunities or ways to reduce batch size)
Unreliable processes (look for error-proofing opportunities)
Long change-over-times
1. Root Cause Analysis using the 6 Ms
2. 7 Types of Waster (Muda)
3. 5 “S” Organization
4. Action Work-out (Kaizen)
5. Error Proofing (Poke-yoke)
Lean Tools
Root Cause Analysis
Lean Tools
The 6 Ms can help you define the WHY. The areas of variation and waste in your processes.
1. Machine
2. Methods
3. Materials
4. Measurement
5. Man (now sometimes called P for Person “5 Ms and a P”
6. Mother Nature
Brainstorm RCA with EVERYONE involved in the process!
7 Types of Waste (Muda)
Lean Tools
1. Extra Processing – Waste in the form of non-value adding activities performed in the process.
1. Example: revise, re-design, re-work, re-tool
2. Waiting – Time spent in the process waiting for another step to complete or a decision to be made.
3. Motion – Physical human motion that does not add value to the process. 1. Example: moving parts/documents from one location to another.
4. Over-Production – Creating parts ahead of time, due to mismatch in production schedules. Producing more than the customer needs.
5. Inventory – Holding additional materials on shelves, racks and floors
6. Transportation – Unnecessary movement of parts, equipment. Transmitting unnecessary email and data.
7. Defects – Defective work or excessive inspection.
Lean Tools
5 “S” - Organization
Sustain!!
Store Sort / Straighten Shine Standardize
Distinguish:
Between what is needed and what is not.
“When in doubt, move it out”
Organize:
(Arrange and label) remaining needed items to maximize efficiency.
Three phases:
1. Daily cleanliness2. Cleanliness Inspections3. Cleanliness
Maintenance
1. Develop and implement best practices.
2. Visual Workspace3. Visual Standards
Key Questions:
1. What is it for?2. Why do I have it?3. How often do I use it?4. Does someone else have the
same thing?
Arrange items to be:
1. Easy to find – visual controls2. Easy to use – immediate
retrieval3. Easy to return – immediate
return
Keys:
1. Must be done on a regular basis
2. Cleaning tools & supplies available at point of usage
3. Assign specific individuals to tasks
4. Designate specific cleaning time
Keys:
1. Assign ownership2. Use checklists3. Color code
Action Work-Out (Kaizen)
Lean Tools
1. Why? – It brings stakeholders together to see the “Big Picture” end-to-end process.
2. Who? – 30% Management – they can make it happen 30% Subject Matter Experts (SME) – they know how it is done 30% Personnel outside the process – they ask why is it done that way? 10% Black Belts – for Facilitators and Scribes
3. What? – Map and document current (as-is) and future (to-be) state process Identify Value Stream to Customer Define relationships among key process points Remove bottlenecks
Error Proofing
Lean Tools
Poke-yoke definition:The removal of all potential causes of error through design, process
or mistake-proofing devices to ensure consistent process results.
Attitude:• I do not ACCEPT defects• I do not MAKE defects• I do not PASS ON defects
Recap ..What is Lean Six Sigma
Why is Lean Six Sigma so Successful?
When Do We Use Lean/Six Sigma?
Why Do Companies Fail?
Perspectives of Lean Six Sigma
Perspectives of Lean Six Sigma
Perspectives of Lean Six Sigma
Perspectives of Lean Six Sigma
Lean Six Sigma Practice
Lean Six Sigma Training
Lean.org
Certification:
1. Training: www.villanovau.com (16 weeks)
2. Exam: American Society for Quality – asq.org
Thank You for Your Attention