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Alex TeohPrincipal Consultant

Lean Sigma Institute

alex@leansigmainstitute.com

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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