Quality Assurance by 6 Sigma -Lean principals

1. Copyright © 2006
Six Sigma Academy International, LLC
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Introduction To Lean
And Lean Thinking

2. Introduction To Lean And Lean Thinking
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Module Objectives
By the end of this module, participants should be able to:
• Explain the benefits of Lean Thinking
• Introduce concept of Value-Added activities
• Explain the Five Principles of Lean

3. Introduction To Lean And Lean Thinking
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Lean Is...
A set of principles, concepts, and techniques designed for a relentless
pursuit in the elimination of waste. Producing an efficient Just In Time
system, that will deliver to our customers…
• Exactly what they need
• When they need it
• In the quantity they need
• In the right sequence
• Without defects
• And at the lowest possible cost

4. Introduction To Lean And Lean Thinking
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The “House Of Lean”
Customer
• Voice Of Customer (VOC)
• Takt
• Quality Function Deployment (QFD)
Just
In
Time
Built
In
Quality
Quality Systems
• Autonomation
• Mistake Proofing
- Product
- Process
People
• Policy Deployment
• High Performance Org
• Safety
Materials Systems
• Production Smoothing
• Flow/Pull
- Line Design
- Kanban
- Single Minute
Exchange of Dies
(SMED)
- Point of Use
(POU)
• Variation Reduction
• Visual Controls
• 5S
• Standard Work
• Design For Manufacture (DFM)
• Total Productive Maintenance (TPM)
Stability

5. Introduction To Lean And Lean Thinking
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Lean Thinking Is Different From Past
Efforts In That…
• Simple changes to work methods make huge contributions
• It is owned by people doing the work
• It reduces workload rather than increasing it
• It is easy to understand and implement
• It not only makes your firm more competitive, it makes your firm a better
place to work

6. Introduction To Lean And Lean Thinking
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Benefits Of Lean Thinking
• Significantly reduced Process Cycle Time
• Elimination of costly Non-Value-Added activities
• Enhanced value creation and team focus
• Reduced non-recurring and indirect costs
• Improved utilization of scarce resources
• Maximized synergy among all related processes

7. Introduction To Lean And Lean Thinking
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Lean businesses are passionate about measuring the performance of
processes. Any or all of these measures can be used to quantify progress
toward Lean business processes:
Capacity to
Handle New Work
Process
Cycle Time
Level of Employee
Multitasking
Length of
Process Queues
Profit Margin
on Sales
Productivity per
Employee
Return on Capital
Investment
Consistency of
Delivery
Measurable
Improvement
Some Metrics Of Lean
Business Processes

8. Introduction To Lean And Lean Thinking
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The Role Of Lean Thinking
The methods of Lean Thinking provide an efficient way to reduce
operational waste, save time, save cost, and extend capacity of
valuable resources:
A typical waste-filled Value Stream...
Task Waits
in Queue
Deliverable
Created
Desired
Outcome
Unnecessary
Task
Approval
Cycle
Error-Correction
Loop
...and a Lean Value Stream for
the same process:
Desired
Outcome

9. Introduction To Lean And Lean Thinking
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Lean Thinking Removes Obstacles
To Improvement
• Lean is the enemy of:
- Poorly defined organizational roles and responsibilities
- Firefighting and expediting and its resulting chaos
- Functional organizations whose prime purpose is self preservation
- Poorly defined and inefficient processes
- Poor utilization of valuable human and capital resources
• Lean encourages:
- Metrics focused on customer Value-Added processes
- Productivity enhancing work methods
- Uniform prioritization of work

10. Introduction To Lean And Lean Thinking
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How Lean Do You Think Your Processes Are?
The Opportunity*
• 20%-60% Reduction in Process Cycle Times
• > 50% Improvement in Resource Utilization
• 10%-50% Increase in Gross Margins
• > 30% Gain in Process Capacity
• Dramatic Improvement in Schedule Predictability
*Based on reported results from firms spanning several industries, 1999-2000

11. Introduction To Lean And Lean Thinking
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• “Waste” describes the elements of “processing” that add no value to the
service or product required by the customer
• Historically, firms have been organized based on functional silos and
poorly defined processes – They are loaded down with
Non-Value-Added waste
• Lean Thinking demands an organizational culture that is intolerant of
waste in all forms and which encourages highlighting of all wastes
Lean Thinking

12. Introduction To Lean And Lean Thinking
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Our goal is to eliminate NVA activities wherever possible and
minimize the BVAs through the use of Lean Methods.
Definition Of Value
• Any activity or task that transforms the “deliverables” of a process in such
a way that the customer is both aware of it and willing to pay for it, is
Value-Added
• Based on this (strict) definition of value, we can divide the tasks and
activities of any process into three categories:
- Value-Added (essential) or VA
- Business-Value-Added (BVA)
- Non-Value-Added (NVA)

13. Introduction To Lean And Lean Thinking
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Definitions – Activity Types
Value-Added
• Any activity or task that transforms the deliverables of a process in such
a way that the client is aware of it and is willing to pay for it
- Any activity that, when left out, would impact product performance
and/or customer satisfaction
Business-Value-Added
• Necessary to support Value-Added steps in the current process
- Includes those activities that do not add value but are currently
required by regulation or law
- When left out, may not directly impact the customer or
incur dissatisfaction
Non-Value-Added
• Any activity that, when left out, does not directly impact the customer or
the business

14. Introduction To Lean And Lean Thinking
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Value-Added Quiz
Activity VA BVA NVA
1) Attending a weekly team coordination meeting
2) Filtering through your daily e-mail list
3) Reporting status to upper management
4) Gaining multiple approvals on documents
5) Gaining management approval for routine actions
6) Expediting a document through the approval list
7) Writing formal policies and procedures
8) Writing brief work-method instructions
9) Gaining agency approvals – Not legally binding
10) Creating ISO 9000 documentation
11) Hunting for needed information to do your job
12) Building a “best practices” database
13) Holding a lessons learned meeting
14) Assigning a tracking number to a shipment
In which category should the following activities be placed?

15. Introduction To Lean And Lean Thinking
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Pg 15
THE LEAN ROAD MAP
OBJECTIVE
STAGE
B
R
E
A
K
T
H
R
O
U
G
H
S
T
R
A
E
T
G
Y
Transform how day-to-day
business is conducted
Continuous improvement/vigilance
Institutionalize the Gain,
Continuous improvement
Implementation
Select the most urgent process
improvements based on impact
and ease of implementation
Achieve “Target” State,
Make selected changes,
Evaluate improvement
Brainstorm on
potential
countermeasures
Create a prioritized list of
opportunities for waste
reduction
Evaluate gap between
“As Is” and “Future” States
Prioritize waste-
elimination opportunities
Map and Identify waste in
current process
Map the “As Is”
Value Stream, Collect data
Identification
BREAKTHROUGH
STRATEGY
FOCUS
Sigma Lean Strategy:
The Lean Road Map
Removal of all waste from the
current process
Map the “Ideal Future”
Value Stream
Visualization

16. Introduction To Lean And Lean Thinking
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Lean Thinking can be summarized in five principles*:
Principle 1 – Specify and Focus on value
Principle 2 – Identify the Value Stream
Principle 3 – Allow value to flow without interruptions
Principle 4 – Let the customer pull value
Principle 5 – Continuously pursue perfection
* Womack J. P. and Jones D. T., Lean Thinking, Simon & Schuster, 1996
The Five Principles Of Lean Thinking

17. Introduction To Lean And Lean Thinking
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Principle #1 – Specify And Focus
On Value
Increased
Value
of
Process
Output
Point of Optimized
Output Value
Too Much
Information,
Unnecessary
Features, Etc.
Missed Value
Opportunities
Cost of Process Output

18. Introduction To Lean And Lean Thinking
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Principle #2 – Identify The Value Stream
The Value Stream is a
sequence of events that lead
from a triggering event
to a final deliverable.
It is similar to a Process Map.
C/T = Calendar Time
W/T = Work Time
VA/T = Value-Added Time

19. Introduction To Lean And Lean Thinking
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Example Of A Common Waste:
Work Time vs. Value-Added Time
“Cycle” Time
“Work” Time
“Value-Added” Time
Cycle Time – The actual duration of a task from start to finish
(the calendar time).
Work Time – The time currently physically applied to the task.
Value-Added-Time – The amount of the work time that is actually
Value-Added…the rest is waste!

20. Introduction To Lean And Lean Thinking
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Principle #3 – Allow Value To Flow
Without Interruptions
Value
There can be many obstacles
to the flow of value!
Customer
Functional Departments
Inadequate
Resources
Multiple Approvals
Unnecessary Documents
Unnecessary Queues and
Wait Times

21. Introduction To Lean And Lean Thinking
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If…
• Every activity within a process has a “deliverable,” and...
• Every “deliverable” must be received by some “customer”
Then…
• The best way to ensure a satisfied “customer” is to have
them DEFINE THE FORMAT AND CONTENT OF
THEIR DELIVERABLES.
Principle #4 – Let The Customer
Pull Value
Remember:
“Customers” can be both
internal and external

22. Introduction To Lean And Lean Thinking
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It takes about a week for
THIS to look like THIS!
Waste constantly invades every work process.
Disorder tends to naturally increase.
Constant vigilance is essential to maintain Lean
production and Lean business processes!
Principle #5 – Continuously
Pursue Perfection

23. Introduction To Lean And Lean Thinking
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VSM
JIT
TPM
Changeover
Std Ops
Mistake
Proofing
Material
Systems
Kaizen
5S
• Current Map
• Future Map
• Define Opportunities
• Takt
• Flow
• Pull
• Visual Controls
• Visual Management
• PM
• Establish OEE
• Add Controls
• Poka Yoke Devices
• Takt Time
• Work sequence
• Std WIP
• Address long
setups
• Line change
• Start up
/shutdown
• Planning
• Inventory
• Distribution
• Speed
• Teams
• Breakthrough
Lean Tool Map

24. Introduction To Lean And Lean Thinking
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• Value Stream Mapping
• Layout Developed – FLOW
• Make Physical Moves
• Standard Operations Developed
• Visual Systems put in Place
• Quick Changeovers and Material Systems Addressed
• Control Systems put in Place
• Retrain Personnel
• THEN DO IT AGAIN
Implementing Lean
Kaizen Event – Objectives

25. Introduction To Lean And Lean Thinking
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DOCUMENT
REALITY
REALITY
CHECK
FIRST DAY DAYS 2, 3, OR 4 LAST DAY
KICK-OFF:
PD/GOALS
REFRESHER
TRAINING
We get these
We do these
We measure progress
with these
Goals
Driver Measures
/Event Objectives
Countermeasures
(LMTools)
ID THE
WASTE
PLAN
COUNTER
MEASURES
MAKE CHANGE
REVIEW
PROGRESS
TO-DO LIST
MAKE CHANGE
MAKE CHANGE
TO-DO LIST
REVIEW
PROGRESS
VERIFY
CHANGE
QUANTIFY
RESULTS
SUMMARIZE AND
CELEBRATE
EVENT SUMMARY
GOALS AND RESULTS
DO IT AGAIN!
N
S
E
W LEAN
?
TOOLS
DRIVE
R
S
DRIVER MEASURE /
CO UNTERMEASURE
MATRIX
TO - DO LIST
TEAM
LEADER
MEETING WITH
CONSULTANT
MAKE THIS THE
NEW STANDARD
PREWORK EVENT WEEK POST EVENT
T
O -D
O L
I S T
TEAM
LEADER
MEETING WITH
CONSULTANT
T O-DO L IS
T
TEAM
LEADER
MEETING WITH
CONSULTANT
CLASSROOM
TRAINING
SELECT TEAM
EVENT SUMMARY
GOALS AND RESULTS
GOALS
DR
IVE
RS
G O A LS /
D RIV ER M EA S U R E
M A TR IX
TOOLS
DRIV
ER
S
DR IV E R M EA S U R E /
C O U NT E RM E A SUR E
MA T R IX
PREPARE EVENT
OBJECTIVES
PREPARE
PD
MATRIXES
EVENT
TEAM SELECTION
IF NECESSARY,
EVENT CLOSURE:
EVENT EVALUATION
AND FOLLOW-UP
TO-DO LIST
VERIFY
CHANGE
QUANTIFY
RESULTS
MAKE THIS THE
NEW
STANDARD
DOCUMENTING REALITY
TIME OBSERVATION
Kaizen Event – What It Looks Like

26. Introduction To Lean And Lean Thinking
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Event Elements
Document
Reality
Plan
Countermeasures
Reality
Check
Make Change
Verify Change
Quantify Results
Make This The
New Standard
Celebrate
Do It Again!
Identify Waste
Lean?
N
S
E
W
KAIZEN
Abnormal
Normal vs.
VA
NECESSARY
REDUCE
NVA
TO
O
LS
DRIVERS
D
R
IV
E
RM
E
A
S
U
R
E/
C
O
U
N
T R
M
E
A
S
U
R
E
M
A
T
R
IX
Target Matrix
UNNECESSARY
Kaizen Event – What It Looks Like
Start
Here

27. Copyright © 2006
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Examples Of Lean Tools

28. Introduction To Lean And Lean Thinking
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Spaghetti Chart To Evaluate Initial Flow

29. Introduction To Lean And Lean Thinking
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LINE LAYOUT AFTER KAIZEN
GS 56 ASSEMBLY LINE
10-16-00
Line Layout Showing Cellular Approach
(Improved Flow)

30. Introduction To Lean And Lean Thinking
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Percent Loading Chart Before Kaizen
Percent Loading Chart
GS-56/96 Operations on Current Process
7-14-00
0
40
80
120
160
200
Operation
%
of
TAKT
Takt Time = 30 secs
.
“Should-Be” Process
based on current
procedures
“Actual” Process
Percent Loading Chart
GS-56/96 Operations on Current Process
9-1-00
0
40
80
120
160
200
Operation
%
of
TAKT
Takt Time = 30 secs.

31. Introduction To Lean And Lean Thinking
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• Find out why H1 and H2 Valve Assembly operations are not running to
standards. Re-establish proper documented procedures.
• Conducted Kaizen Event to evaluate and re-balance the production line
combining two of the assembly stations
• Online data sheets keep track of hours and track scrap
• Visual production board tracking hourly production rates and
problems encountered
• Process sheets changed from “all word” to “visual” type
• The 5S have been implemented
• Kanbans set up for all piece parts
• Action plans formulated to address remaining KPIVs
Key Actions Taken

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Pg 32
0
20
40
60
80
100
120
Coil Assy Body Assy Arm Assy Final Assy
Operator
%
of
TA
KT
Ti
me
Percent Loading Chart After
Kaizen
Line Rebalancing
(10 operations combined into 4)
% of
Takt
Time

33. Introduction To Lean And Lean Thinking
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Module Objective
By the end of this module, the participant should be able to:
• Explain the Benefits of Lean Thinking
• Introduce concept of Value-Added activities
• Explain the Five Principles of Lean
• Describe several typical Lean tools

34. Introduction To Lean And Lean Thinking
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