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Learning Objectives
1. Understand DMAIC and Lean Methodologies.1. Understand DMAIC and Lean Methodologies.
4. Where are Six Sigma and Lean Methodologies
used?
4. Where are Six Sigma and Lean Methodologies
used?
3. What are the tools used for Six Sigma and Lean?3. What are the tools used for Six Sigma and Lean?
2. What are the differences between Six Sigma and
Lean?
2. What are the differences between Six Sigma and
Lean?
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Inputs
Six Sigma Basic Premise
Outputs
(CTQ)
Do you know what is important to customers?
Do you know what “Xs” are important to
meet customer needs?
How do the “Xs” drive outcomes,
revenue, and cost?
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Control
Improve
Analyze
Measure
Define
Test Hypotheses
List Vital Few Xs
Identify Control Subjects
Develop Feedback Loops
Develop Process Control Plan to Hold the Gains
Implement, Replicate
Select the Solution
Design Solution, Controls, and Design for Culture
Prove Effectiveness
Develop Project Charter
Determine Customers & CTQs
Map High-Level Process
Establish and Measure Ys
Plan for Data Collection
Validate Measurement System
Measure Baseline Sigma
Identify Possible Xs
Six Sigma DMAIC Methodology
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Y
Xs
Measure
Analyze
Improve
Control
Process
Characterization
Process
Optimization
Goal: Y = f
( x )
DefinePractical Problem
Statistical Problem
Statistical Solution
Practical Solution
Six Sigma Methodology
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y
x
Poor Design
Changing Needs
Measurement System
Insufficient Process
Capability
Skills & Behaviors
Sources of Variation
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Lean Methodology
Analyze the Value Stream Attribute Map
Analyze the Process Load and Capacity
Perform VA/NA Decomposition Analysis
Apply Lean Problem Solving to Solve for Special Causes
Stabilize and Refine Value Stream
Complete Process and Visual Controls
Identify Mistake-proofing Opportunities
Implement S4-S6
Control Plan, Monitor Results, and Closeout Project
Conduct the Rapid Improvement Event
Design the Process Changes and Flow
Feed, Balance, Load the Process
Standardize Work Tasks
Implement New Processes
Define Stakeholder Value and CTQs
Define Customer Demand
Map High-level Process
Assess for 6S Implementation
Measure Customer Demand
Plan for Data Collection
Validate Measurement System
Create a Value Stream Attribute Map
Determine Pace, Takt-time and Manpower
Identify Replenishment and Capacity Constraints
Implement S1-S3
Control
Process
Improve
Process - Pull
Analyze
Process - Flow
Measure
Value
Define
Value
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Why Define a Process as a Value Stream?
A Value Stream
Focuses attention on what is important for the customer.
Identifies all the necessary components to bring a product or
service from conception to commercialization.
Identifies waste inherent in processes and works to remove
it.
Reduces defects in products and deficiencies in processes.
Focuses on improving specs and cost.
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What Is Typically Found
Lean Value Stream Management starts with defining
value in terms of products and process capabilities
to provide the customer with what they need at the
right time and at an appropriate price.
Value
added
Non-value
added/waste
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The Eight Wastes
1. Overproduction—making or doing more than is required or
earlier than needed.
2. Waiting—for information, materials, people, maintenance, etc.
3. Transport—moving people or goods around or between sites.
4. Poor process design—too many/too few steps, non-
standardization, inspection rather than prevention, etc.
5. Inventory—raw materials, work-in-progress, finished goods,
papers, electronic files, etc.
6. Motion—inefficient layouts or poor ergonomics at work-
stations or in offices.
7. Defects—errors, scrap, rework, non-conformance.
8. Underutilized personnel resources and creativity—ideas
that are not listened to, skills that are not utilized.
adapted from Taiichi Ohno
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History of Lean
Toyota
Ohno and
Shingo
Flow of work
Small batch
sizes
New philosophy
Womack “Mach.
Changed World”
Eliminate Waste
Improve
performance
Flexibility
1940 1952 1964 1980 1990 2000 2008
Just-in-Time
Schonberger
“Japanese
Mfg
Techniques”
Takes TPS
and imports
to US
Added to 6s tool
kit
Large quantities
Rapid pace
High training
US war
production
TPS
Lean
JIT
Lean 6s
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The Methods
LeanLean
&&
SixSix
SigmaSigma
LeanLean
&&
SixSix
SigmaSigma
Improve SpeedImprove Speed
Achieve BreakthroughAchieve Breakthrough Dashboard ResultsDashboard Results
Lower CostsLower Costs
Culture ChangeCulture Change
Sustain PerformanceSustain Performance
Higher QualityHigher Quality
Methods Results
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Chronic Waste
COPQ
Chronic Waste
COPQ
Six Sigma
& Beyond
Six Sigma
& Beyond
Time
BreakthroughBreakthrough
Accelerated Change Management SupportAccelerated Change Management Support
How to Think About Improvement
Sporadic Spike
RCCARCCADFSSDFSS Lean Six SigmaLean Six Sigma
The Juran Trilogy ®The Juran Trilogy ®
Plan Control Improve
Lessons LearnedLessons Learned
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Change
Management
Change
Management
Plan, Do,
Study, Act
(PDSA)
Plan, Do,
Study, Act
(PDSA)
Lean &
Six Sigma
DMAIC
Lean &
Six Sigma
DMAIC
Design for
Lean
Six Sigma
Design for
Lean
Six Sigma
Unclear
Solution
ClearSolution
Radical
Moderate
Small Gains or
Clear Solution
Launch New
Product,
Service, or
Process
Large
Gains
Medium
Gains
Matching Improvement Process to Need
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Lean and Six Sigma
LEAN = Improvement principles focused on
dramatically improving process speed and eliminating
the eight deadly wastes.
Improve
Process-
Pull
Control
Process
Analyze
Process-
Flow
Measure
Value
Define
Value
SIX SIGMA = Breakthrough Process, Design, or
Improvement Teams focused on eliminating chronic
problems and reducing variation in processes.
Improve ControlAnalyzeMeasureDefine
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Lean Project Attributes
Improvement
Simply stated: “Lean is about moving the Mean.” It
focuses on efficiency.
Lean reduces average cycle time.
Lean reduces excess inventory.
Lean improves average response time.
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Six Sigma Attributes
Improvement
Simply stated: “Six Sigma is about Reducing Variation.” It
focuses on Effectiveness. The mean will most likely also be
improved.
Decrease defect rate
Increase Process Yield
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Lean and Six Sigma
Six Sigma = Breakthrough Process Improvement Teams focused on
eliminating chronic problems and reducing variation in processes.
Lean = Rapid Improvement Teams focused on dramatically improving
process speed, and the elimination of the eight deadly wastes.
IMPROVED
EFFICIENCY
Improve
Process-
Pull
Control
Process
Analyze
Process-
Flow
Measure
Value
Define
Value
IMPROVED
EFFECTIVENESS
Improve ControlAnalyzeMeasureDefine
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Lean Six Sigma
Lean Six Sigma is an approach to integrating the power of Six
Sigma Tools and Lean Enterprise Tools which can be applied
within an organization to create the fastest rate of
improvement, maximize shareholder value, and increase
customer delight.
Improve
Process-
Pull
Control
Process
Analyze
Process-
Flow
Measure
Value
Define
Value
Improve ControlAnalyzeMeasureDefine
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Which Technique to Begin With?
Other Reasons to Begin Lean?
It is often advantageous to begin with Lean projects.
– These are easier to understand and implement.
Begin with streamlining processes and Rapid Improvement
Events.
– This gets the operation in good order.
– Chronic problems are now easier to deal with.
– “Low Hanging Fruit” is eaten.
Next, select Six Sigma projects
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Lean Projects
Use Lean when you are trying to streamline any process and
reduce process waste.
Improve assembly line throughput
Reduction in Finished Goods Inventory
Reduce the time to process new proposals
Reduce machine setup time
Improve order processing time
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Six Sigma Projects
Use Six Sigma where process metrics are more difficult to
collect or understand, and project success requires analysis of
multiple input factors (Xs). These are often chronic problems.
Improve yield on a continuously running machine
Reduce defects on a machine with multiple inputs and
machine settings
Reduce the amount of wait time for a call center
Improve the number of quality new hires
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Mixed Projects
What happens when you start a Six Sigma Project and it turns
into a Lean project?
It is all about the correct tools.
Use the Lean tools for project success.
What happens if a Lean project turns into Six Sigma?
Depending when this is discovered, it may mean going
back to utilize some Six Sigma tools before proceeding.
Notas do Editor
Lean Six Sigma is about improving what is important or “critical to the customer and quality (CTQ).” Y is the measurement of the CTQ that needs to be improved to meet customer needs.
Once you understand what the Ys are, (those things critical to customers and quality), measure them and compare them to the targets. Understand the process characteristics that may cause variation and then reduce this variation by controlling the process variables. These process variables are called the Xs.
There may be many Xs that can affect the Y.
This simple equation is used to help communicate what a project is trying to accomplish. If Y is a function of X, then identify the Xs with enough precision to first improve them and then control them. Once Xs are maintained, the Y will be met.
The Equation: “Y= f (X)”
The five phases of DMAIC are summarized here.
In the Define Phase, the problem or Y is defined.
In the Measure Phase, the Y is measured (size and span).
In the Analyze Phase, the Xs are analyzed and are proven or disproven as to whether they belong in Y = f (X).
In the Improve Phase, the levels of Xs are determined to achieve the desired level of Y performance.
In the Control Phase, the Xs are controlled to those determined levels so that the desired Y performance is ensured.
Focus on controlling the Xs, instead of inspecting Y.
Six Sigma DMAIC Methodology
This slide summarizes how Six Sigma attacks problems.
Translate a practical problem into a statistical problem so it can be analyzed statistically and come up with a statistical conclusion.
Then translate the statistical conclusion back into the practical world so that you can implement those practical solutions.
Attacking Problems
All products and services are designed with good intentions but without knowing what variables will cause the product or service to not meet customer needs over time. Over time excess variation from these root causes must be reduced.
List examples of process variation in your system.
Variation
This slide summarizes the Lean methodology. Lean focuses on value and flow.
Lean Methodology
As part of the focus, processes are viewed as value streams. What value Is provided through each step of the process and what can be done to improve value-add. Waste and non-value add is removed or reduced.
Value Streams
Overproduction—making or doing more than is required or earlier than needed
What is the minimum quantity the customer needs?
What is the minimum order quantity or lot size?
Waiting—for information, materials, people, maintenance, etc.
Any wait-time is waste.
Look to eliminate or minimize by ensuring that items arrive only when they are truly needed.
Transport—moving people or goods around or between sites
Although some is necessary, this is also pure waste.
Calculate the amount of travel distance and number of times items, materials, and WIP are moved per day (Spaghetti Diagram).
Look to minimize distance or number of daily moves.
Poor process design—too many/too few steps, non-standardization, inspection rather than prevention, etc.
This is attacked through VA/NVA analysis.
U-shaped cells and moving areas in close proximity.
Standardize on a size (i.e. using same screw size for all assemblies).
Design to eliminate inspection.
Inventory—work-in-progress, papers, electronic files, etc.
Calculate days of supply for all goods.
Understand how long it takes to replenish each item (more frequent supplies means less inventory).
Develop strategy for the amount of supply to keep.
Monitor and measure.
Motion—inefficient layouts at workstations; poor ergonomics in offices
Motion requires detailed analysis of movements.
Defects—errors, scrap, rework, non-conformance
Any defect is waste.
Use Pareto Analysis to identify key defect reasons.
Need to understand causes of the errors—use cause-effect diagram.
Look to eliminate all causes through mistake proofing.
Underutilized personnel resources and creativity—ideas that are not listened to, skills that are not utilized
Remember, that everyone can contribute.
How to Identify the Eight Wastes
The historical development that led to Lean and to Lean Six Sigma is summarized here.
During the WWII war production years, the focus was on large quantities.
The Toyota Production System (TPS) focused on streamlining flexible production flow through reduced batch sizes, improved quality, and producing to the pull of customer demand.
JIT or Just-In-Time production expanded the application, philosophy, tools, and techniques of TPS to the U.S. and other parts of the world. JIT is synonymous with TPS.
Lean took it one step further. Womack in his seminal book expanded TPS/JIT to include all industries—services and other non-manufacturing industries.
Lean focuses on flow, flexibility and speed, and the minimizing of waste. The waste or obstacles are obvious after some simple analysis.
Six Sigma focuses on reducing variation and ensures that the Xs in Y = f (X) are determined and controlled to solve chronic problems. The Xs are usually not obvious. High consistent quality is the result.
Lean Six Sigma deployment marries the two to enable companies to address a larger variety of problems. Depending on the type of problem, Lean or Six Sigma or a combination of both will be used.
History of Lean
Lean and Six Sigma enable and provide the right tools, the right projects, and the right processes to drive sustainable breakthrough improvements resulting in improved quality, lower costs, improved dashboard metrics, and culture change.
The Methods
Breakthroughs achieve substantially higher levels of performance quickly. Breakthroughs do not just happen. They require a systematic change process, one that can be achieved with the “project-by-project” approach.
Costs of Poor Quality (COPQ) are those costs that would disappear if every task were done perfectly the first time, every time. It can also be defined as the difference between the theoretical minimum cost and the actual cost.
Improving products, processes, and services is a never-ending pursuit. Achieving breakthroughs may require a tenfold improvement, or even better than 3.4 ppm, which is a Six Sigma level.
Lean and Six Sigma are methodologies and toolsets that can enable an organization to improve performance systematically.
For an organization to continue making breakthroughs and meet the needs of their stakeholders, they must master the skills to plan, control, and improve quality.
Key Word Is “Breakthrough”
Change Management is about anticipating and planning for human reaction to improvements, in addition to the technical and business components of the change. It begins with understanding the values and habits of the population that must change. It develops the means to promote that change among the target population members, including communication, changes in reward and recognition, and adaptation of details of the change in ways that are consistent with the population values.
Root Cause Corrective Action (RCCA): Provides a means to attack sporadic spikes or special causes that occur daily.
Lean and Six Sigma (DMAIC): Lean is a set of methods used to eliminate non-value added tasks and increase speed. The Six Sigma method of Define-Measure-Analyze-Improve-Control (DMAIC) is a business improvement approach that drives dramatic breakthroughs in performance. Lean Six Sigma is not watered down Six Sigma, it means Six Sigma combined with the Lean methods to remove waste and speed up processes. The combination is more powerful than either alone.
Design for Six Sigma (DMADV): This method of Define-Measure-Analyze-Design-Verify (DMADV) is used to design or redesign processes, services, and products at high sigma levels so that they are almost flawless from the beginning.
Definitions
Note the shift in the mean. For example, the mean cycle time is reduced.
Lean Project Attributes
Note the shift in the mean and the reduced variation.
Six Sigma Attributes
As needed, a project can be a Lean project, a Six Sigma project, or a Lean Six Sigma project which uses the tools of both Lean and Six Sigma, as appropriate.
Lean Six Sigma
Lean attacks obvious waste.
Examples of Lean projects are listed here. Note the emphasis on flow, speed, and time.
Lean Projects
Note the emphasis on determining the root causes (that we do not know or are not obvious) and determining the best levels of Xs in Y=f (X).
Six Sigma Projects
As indicated earlier, both sets of tools may be needed.
For example, a Six Sigma project may determine in the Analyze Phase that there is no standard process or there is no process in place. In the Improve Phase, the team will want to conduct a Lean event to develop the best standard work process.
Alternatively, a Value Stream project may find that certain portions of the Value Stream have too much variation. Six Sigma tools will be used to determine the Xs that drive the variation in Y = f(X) and thus, improve process capability. If it is a big effort, then a Six Sigma sub-project is launched as part of that Value Stream Management project.
Mixed Projects
