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Welcome To…


The Lean Six Sigma Black Belt




                     Presented by e-Zsigma (Canada) Inc.
          Canada’s Leader in Lean, Six Sigma and Innovative Practices
ABUNDANT CHALLENGES...
Healthcare                                    Telecommunications
  Wait times; rapid access to quality care      Meeting changing customer expectation
  Cost-effective, sustainable delivery          Increased competition
  platforms                                     Asset and infrastructure management
      Increased demand and aging population     Speed to market: New technology &
  Surge/capacity management & integration       services
  Integration of emerging technologies          Increased revenue & reduced cost
Manufacturing                                 Services
  Global competition                            Cost management
     Changes in exchange rates                  Information management
     Margin erosion                                   Security & privacy
  Changes in customer demand patterns                 Sarbanes-Oxley and equivalents
  Bringing new product to market                      E-Service
  Availability of skilled labour                Outsourcing & Off-shoring
                                                Bringing new services to market
                                                A “Balanced Scorecard” – transparency and
                                                accountability

                                                     What are your challenges?
EVER-INCREASING CUSTOMER FOCUS
Organizations provide goods and services for customers – they
define needs, quality and price
Customer focus drives such questions as:
  Why are we in business?
  Where do we need to be in the future?
  What is the source of our “Competitive Advantage”?
Customers bring alignment to cross-functional organizations:
  What drives purchasing behaviour?
  What is a defect; what constitutes value for the customer?




                          Lean Six Sigma; Deconstructing the Black Belt
                               Presented by e-Zsigma (Canada) Inc.        September 10, 2010
                                       www-e-zsigma.com
UNDERSTANDING CUSTOMER NEEDS
The “Voice of the Customer” (VOC) is the qualitative or
quantitative expression of the things that drive customer
satisfaction
In a commercial setting, VOC are all those things that drive
intent to purchase or repurchase (commitment)
VOC is the true customer voice – in the words of the customer
VOC needs to be constantly and accurately understood to
create Value




                      Lean Six Sigma; Deconstructing the Black Belt
                           Presented by e-Zsigma (Canada) Inc.        September 10, 2010
                                   www-e-zsigma.com
QUANTIFYING NEEDS

I hope I don’t have
to wait too long to
see the doctor!




                                    Quantitative: “total
                                    minutes lapsed until
                                    meeting the doctor”
      Subjective: “Too Long”


  5                                            September 10, 2010
MEETING TARGETS BASED ON CT’S?...
                 Capability to meet/exceed customer
                 expectation?
                 Reliability and stability of key
                 (process) inputs resulting in
                 predictable outcomes for
                 customers?
                 Need to “shift” the average?
                      Increase production rate/capacity
                      Reduce cycle time and cost

                 Need to reduce variation?
                      More “robust” processes
                      Less non-conforming results (eliminate defects)



           Lean Six Sigma; Deconstructing the Black Belt
6               Presented by e-Zsigma (Canada) Inc.                September 10, 2010
                        www-e-zsigma.com
TWO POWERFUL APPROACHES…
Six Sigma & Process Variation                                    Lean & Process Efficiency
•   Describe variation!                                          •      Define customer value!
•   Analyze it! Y = f(x)                                         •      Identify waste!
•   Reduce it!                                                   •      Eliminate waste!
•   Control it!                                                  •      Increase flow of value!


                                                                                                                                   Example
                                                                                                                                   • wait times
                 Reduced                                                                      Reduced                              • cost
                 variation                                                                    average                              • handling
                                                                                                                                   • minutes, hours,
                                                                                                                                   days…

                                                                                 After Lean
                                                                                                    Before Lean
                                                               1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27
         Before 6S             After 6S
     Predictable, Controlled, Capable                                   Efficient, High-Value, Low Cost


    Breakthrough                           Improvement!
                                          Lean Six Sigma; Deconstructing the Black Belt
     7                                         Presented by e-Zsigma (Canada) Inc.                                        September 10, 2010
                                                       www-e-zsigma.com
MAXIMUM VALUE
In the past quality programs focused on meeting the
customer needs at virtually any cost, despite poor
internal processes. Although companies managed to
produce higher quality, costs escalated.
The result...hard to be competitive when costs are
too high!
The Lean Six Sigma Approach: Yielding higher profits
and maximizing value to the consumer, with high
quality products and services at the lowest possible
cost.
                   Lean Six Sigma; Deconstructing the Black Belt
                        Presented by e-Zsigma (Canada) Inc.        September 10, 2010
                                www-e-zsigma.com
LEAN & SIX SIGMA
LEAN
     Patient/Customer Focused
     A Paradigm Shift in the Way Value is Defined
     5 Key Principles & Eight Associated Sources of Waste
     A Value-Stream Based Approach: The “Flow” of Value (velocity)
     Tools & Techniques to Improve Value Creation
        Turn everyone’s “waste radar” on
        Reduce or Eliminate the Inhibitors to Value Creation
     Extremely Participative Problem-Solving , Event Driven, & Culturally Transforming
SIX SIGMA
     Focus on process “problems”: Errors, Quality, Robust Process Design
     Key to Success: Focus on Understanding Process Variation
     Emphasis on data and analysis: Profound Knowledge!
     Project-Centric: Well Defined Goals & Measurable Results
     Rich & Diverse “Tool Box” for Analysis and Problem-Solving

 “At e-Zsigma, we teach people to do Six Sigma and we CHANGE people to do Lean”

                                      Lean Six Sigma; Deconstructing the Black Belt
                                           Presented by e-Zsigma (Canada) Inc.           September 10, 2010
 9                                                 www-e-zsigma.com
WHAT IS LEAN?
It is an approach that shortens the lead-time from customer orders to
delivery of parts or service, using the least amount of resources (people,
equipment, money, materials, time, facilities, etc.) by focusing on
eliminating all forms of waste.
Lean is Customer Focused and Customer Driven. Every person in the
supply chain, both internal and external to the organization is the customer
of their upstream supplier. This creates a Pull System from the ultimate
customer all the way back through all of the linked processes in the supply
chain of products and services.
Lean is a way of thinking – not just the application of a series of
techniques. It is a whole systems approach that creates an environment
where everyone is encouraged to continuously improve processes,
products and services leading to higher levels of value-added activities.
 Lean helps organizations reduce costs, inventory, defects and scrap, cycle
times and non-value-added activities, resulting in a more competitive,
profitable, agile and market-responsive organization.


                           Lean Six Sigma; Deconstructing the Black Belt
                                Presented by e-Zsigma (Canada) Inc.        September 10, 2010
                                        www-e-zsigma.com
LEAN PRINCIPLES?
                           2. Identify & map
                           the Value Stream


   1. Define value                                                         3. Reduce waste
from the customer’s                                                          and improve
     perspective                                                                 flow




                  5. Pursue                             4. Move from
                  perfection                           “push” to “pull”
                                                        from customer

                           Lean Six Sigma; Deconstructing the Black Belt
                                Presented by e-Zsigma (Canada) Inc.              September 10, 2010
                                        www-e-zsigma.com
LEAN 101: DEFINING VALUE
Lean Thinking: Any process step, activity or task that transforms the deliverables of a
process such that the customer is aware of it AND is willing to pay for it is considered
value added. Value is always stated in the eyes of the customer.
                                        © 1996 “Lean Thinking”, Womack & Jones
Healthcare? Any activity or task that moves the patient through the diagnosis,
treatment and prevention process, is performed correctly the first time, and the
customer and/or community is willing to pay/fund for that activity or task since it does
create value.
Public Service? Any process step, activity or task that transforms the deliverables of a
process such that the customer and the community is aware of it and is willing to fund
and/or pay for it is considered value added.
How do you or your organization define value? Because… If it is not value-added, then it
is waste (aka “Muda”)



                                  Lean Six Sigma; Deconstructing the Black Belt
                                       Presented by e-Zsigma (Canada) Inc.        September 10, 2010
  12                                           www-e-zsigma.com
NON-VALUE ADDED: WASTE
Waste is defined as anything that does not add value
for the customer.


“Lean Thinking” requires an organizational
culture that is intolerant of all forms of
waste.

The goal of Lean is to banish                    waste.

                     Lean Six Sigma; Deconstructing the Black Belt
 13                       Presented by e-Zsigma (Canada) Inc.        September 10, 2010
                                  www-e-zsigma.com
LEAN 101: THE EIGHT SOURCES OF WASTE
Inventory & Storage: Brochures/booklets printed, stored and perhaps becoming obsolete
(scrapped)
Waiting or Delays: Delay in getting security clearance for a new hire
Over-producing:
Transportation: The movement of people, equipment, materials etc between building, cities,
regions, provinces, etc
Motion: Poor office layout (departments) resulting in people having to move around to get their
regular work done
Errors/Mistakes: Missing or incorrect information on a form or application resulting in rework
and delays or even lost opportunity
Over-processing: Producing reports in advance of when the information is needed, or
information that may not be needed at all
Underutilized human capability: People working on non-value added (see above) and not
leveraging their talent and capability
9th Waste? Reprioritization


                                   Lean Six Sigma; Deconstructing the Black Belt
                                        Presented by e-Zsigma (Canada) Inc.        September 10, 2010
14                                              www-e-zsigma.com
LEAN 101: MAKING WASTE MORE VISIBLE
     Process Flow Maps
     Spaghetti Diagrams
     Value Stream Maps
     Cause and Effect Diagrams
     Five “Whys?”
     Pareto Charts
     Workplace Organization
       5S (Sort, Set, Shine, Standardize, Sustain)
       Visual Workplace
     Process Reports, Audits and Assessments


                                   Lean Six Sigma; Deconstructing the Black Belt
                                        Presented by e-Zsigma (Canada) Inc.        September 10, 2010
15                                              www-e-zsigma.com
LEAN 101: VALUE STREAM MAPS
Current State Value Stream                     Future State VSM




Kaizen events linked to (future state) VSM plan
Moving process towards the future state
Focus on optimizing customer value
                    Lean Six Sigma; Deconstructing the Black Belt
                         Presented by e-Zsigma (Canada) Inc.        September 10, 2010
                                 www-e-zsigma.com
LEAN 101: THE KAIZEN EVENT




Planning         Execution      Follow-up


                             September 10, 2010
LEAN 101: WHAT IS KAIZEN?
Kaizen: “Change for the better”
Kaizen event: A focused, localized, intense, short-
term (rapid) project to improve a process
 aka “Kaizen Blitz”
 “Kaizen Bursts” are opportunities
 identified on a Value Stream Map
Small-scale improvements are easier and faster
 Risks are lower - typically have limited effect
 The accumulated effect of many Kaizens can often be
 greater than a single large improvement

                     Lean Six Sigma; Deconstructing the Black Belt
                          Presented by e-Zsigma (Canada) Inc.        September 10, 2010
                                  www-e-zsigma.com
LEAN 101: THE 5S EVENT
1.        Sort: Separate what is needed in the work area from what is not. Then…
          get rid of what isn’t needed!
2.        Set in order: Organize what remains – in the order that it is required for
          the process or task
3.        Shine: Clean and inspect the work area/workplace
4.        Standardize: Standardize the cleaning, inspection,
          and safety practices – make it part of the job
5.        Sustain: Establish an environment, including audits and visual cues, that
          ensure the culture of 5S “sticks”
          Note: Lean organizations have a standard that any “tool” must be able to be found within X
          seconds (example: 60 seconds). A tool can be a piece of equipment, a document, a file, etc.
          necessary for the work to proceed and value to be created.


                                         Lean Six Sigma; Deconstructing the Black Belt
                                              Presented by e-Zsigma (Canada) Inc.        September 10, 2010
     19                                               www-e-zsigma.com
EXAMPLE: THE 5S EVENT




     Lean Six Sigma; Deconstructing the Black Belt
          Presented by e-Zsigma (Canada) Inc.        September 10, 2010
20                www-e-zsigma.com
LEAN 101: VISUAL WORKPLACE
The Challenge: People not having access to the knowledge they need to do
    their jobs effectively and efficiently. What tasks? What priority? What
    target? The “correct” way? Which tools and where can I find them?
Waste: Searching, asking, waiting, retrieving, reworking!
Visual workplace: Providing vital information when and where it is needed.
    Easily understood & unambiguous work instructions on what to do,
    when, and how.
    Tools and methods to easily and reliably identify process errors ad
    omissions as quickly as possible - at the source.
    Real-time performance feedback so employees know where they stand in
    terms of meeting goals or targets.
    Encourage alignment of activities across and up and down the
    organization so that they congruent with strategic goals and objectives.
    Promote and communicate cultural change in the organization,
    specifically the lean evolution.
                            Lean Six Sigma; Deconstructing the Black Belt
                                 Presented by e-Zsigma (Canada) Inc.        September 10, 2010
 21                                      www-e-zsigma.com
EXAMPLE: VISUAL WORKPLACE




     “Access to information and tools to do the job”
                       Lean Six Sigma; Deconstructing the Black Belt
                            Presented by e-Zsigma (Canada) Inc.        September 10, 2010
22                                  www-e-zsigma.com
LEAN 101: ASSESSMENTS & AUDITS
Creates accountability & encourages shared commitment for
performance
Tracking trends and (lean) improvement activities
“We measure our performance”: a part of our culture
“You can’t manage what you don’t measure”
 Measures help control the processes
 Metrics aligned to corporate goals and strategy
     Ex. Customer survey data
Using & reporting the “wrong” metric
can be more damaging than having no
metric at all!


                                Lean Six Sigma; Deconstructing the Black Belt
                                     Presented by e-Zsigma (Canada) Inc.        September 10, 2010
23                                           www-e-zsigma.com
LEAN 101: ELIMINATE WASTE BY…
     •   Reduction/elimination of batches   •   Five S – Visual Workplace
          • Single piece flow               •   Quick Changeover
          • Continuous flow                 •   Standardized Work
     •   Improved process control           •   Andon System, Pitch
          • Reduced process variation       •   Materials replenishment
     •   Faster reaction to problems             • Kanban, FIFO
     •   Shorter lead times                      • Supermarket Pull System
          • Reduced forecasts               •   Total Productive Maintenance
     •   Takt time and demand leveling      •   Cellular Design/Layout
     •   Just in Time                            • Work cells
     •   Touch once principle               •   Error Proofing
     •   “Pull” systems design              •   Kaizen improvement events


                                                                 September 10, 2010
24
YOUR EXPECTATIONS FOR LEAN
     Improved customer experience and satisfaction
     Faster response to client needs
     Increased job satisfaction & reduced stress for staff
     Improved, standardized & repeatable processes that are more predictable
     Reduction in Process Cycle Time
     Ability to focus resources on more value-added activities
     Improved asset utilization: people, equipment & technology
     Improved flow through elimination of bottlenecks (delays) and constraints
     (limiters)
     Dramatic improvement in scheduling predictability – better process
     management
     Participative problem-solving
       Engaging the people who know and do the work… the team
     Recognition of the “human” side of lean and the need to manage change

                                  Lean Six Sigma; Deconstructing the Black Belt
                                       Presented by e-Zsigma (Canada) Inc.        September 10, 2010
25                                             www-e-zsigma.com
WHAT IS SIX SIGMA?
Six Sigma is a improvement approach that:
   Focuses on issues that are critical to customers
   Systematically identifies, reduces and eliminates causes of
   variation, errors and defects that occur in key business
   processes
   By doing this, profitability is dramatically improved
Six Sigma is several things:
   a measure of performance
   a strategy for business improvement
   a methodology for managing projects
   a philosophy of eliminating defects

                        Lean Six Sigma; Deconstructing the Black Belt
                             Presented by e-Zsigma (Canada) Inc.        September 10, 2010
                                     www-e-zsigma.com
SIX SIGMA: A FOCUS ON VARIATION
While Lean focuses on eliminating waste (NVA), Six Sigma tools
and methods focus on dramatic understanding and
management of process variation.

           Eliminate errors & defects…
               Minimize variation…

A Paradigm Shift…
“We are going to shift the paradigm from fixing products to
fixing and developing processes, so that they produce nothing
                 but perfection or close to it!”
                                                            Jack Welch, CEO, General Electric
                                                                 GE’s launch of the Six Sigma
                                                                 Management System, 1995
                      Lean Six Sigma; Deconstructing the Black Belt
                           Presented by e-Zsigma (Canada) Inc.                  September 10, 2010
                                   www-e-zsigma.com
SIX SIGMA 101: “Y IS A FUNCTION OF X”



     The heart of “Six Sigma” thinking
     The phrase “Y is a function of X" means that the value of Y (process
     outcome) depends upon the value of x (process inputs), so Y can be
     written in terms of X.
     This philosophy has evolved into a robust, powerful problem-solving and
     process improvement methodology used by hundreds of thousands of
     organizations world-wide
          Automotive, aerospace and manufacturing
          Banking, insurance and financial services                         What sectors, if any, have not
          Hospitality and service industries                                leveraged in some shape or form, Six
          Government and public sector                                      Sigma thinking and methods?
          Healthcare


                                     Lean Six Sigma; Deconstructing the Black Belt
                                          Presented by e-Zsigma (Canada) Inc.                      September 10, 2010
28                                                www-e-zsigma.com
SIX SIGMA 101: CAUSE & EFFECT




          Lean Six Sigma; Deconstructing the Black Belt
               Presented by e-Zsigma (Canada) Inc.        September 10, 2010
29                     www-e-zsigma.com
SIX SIGMA 101: THE IMPORTANT QUESTIONS
1.    Do I fully understand the customer requirements?                          1
      (Target and Tolerance)
2.    How much variation is in the process I use to meet                        2
      my customer’s needs?
3.    How well does my process meet my customer’s
      needs? How often? What is the impact on Cycle                             3
      time? Safety? Customer Satisfaction?

4.    What are the root cause(s) of the process variation?                      4   Y = F(X1..Xi)

5.    Can I reduce variation within the process to reduce
                                                                                5
      the defects? (If not, get a new process.)

6.    Can I center the current process on target?                               6
                                Lean Six Sigma; Deconstructing the Black Belt
                                     Presented by e-Zsigma (Canada) Inc.              September 10, 2010
     30                                      www-e-zsigma.com
SIX SIGMA 101: DMAIC APPROACH
     Define… process improvement goals that are consistent with customer
     demands and the enterprise strategy.
     Measure… key aspects of the current process and collect relevant data.
     Analyze… the data to verify cause-and-effect relationships. Determine
     what the relationships are, and attempt to ensure that all factors have
     been considered.
     Improve… or optimize the process based upon data analysis using
     techniques like Design of Experiments.
     Control… to ensure that any deviations from target are corrected before
     they result in defects. Set up pilot runs to establish process capability,
     move on to production, set up control mechanisms and continuously
     monitor the process.
                                                                                Source: www.isixsigma.com

                                Lean Six Sigma; Deconstructing the Black Belt
                                     Presented by e-Zsigma (Canada) Inc.                   September 10, 2010
31                                           www-e-zsigma.com
LEAN SIX SIGMA 101: ROBUST “TOOL BOX”
                                                Define Phase – Key Tools
                 •VOC (Voice Of the Customer)           •Cost of poor quality          •“Critical To” Tree (CT Tree)
     Define      •Project scoping and problem statement •Change management             •High level process map
                 •Team identification                   •Project contract
                                               Measure Phase – Key Tools
               •Process Mapping (including SIPOC)    •Control Charts Basics               •Binomial Distribution Statistics
               •Rolled Throughput Yield (RTY)        •Measurement System Analysis         •Graphical Analysis and Techniques
               •Basic Statistics                     (MSA)                                •Data Collection Plan
 Measure       •Central Limit Theorem (CLT)          •Process Capability                  •Failure Mode & Effects Analysis (FMEA)
               •Cause and Effect (C&E) Matrix        •Cause and Effect (C&E) Diagram

                                              Analyze Phase - Key Tools
                •Advanced Graphical Analysis          •Statistical Analysis               •Confidence Intervals
                oMulti-Vari Studies                   oHypothesis Testing                 •Power and Sample Size
                oMain Effects Plots                    Means
     Analyze    oInteraction Plots                     Variation
                                                                                           Chi Square
                                                                                           Non-normal data
                oCorrelation                           Proportion                          Analysis of Variance
                oRegression                            Counts                              Analysis of Means
                                              Improve Phase - Key Tools
                •Modeling Designs of Experiments          •Robust Design of Experiments       •Screening Design of Experiments
 Improve        •Response Surface Design of               •Survey Design of Experiments       •Multiple Regression
                Experiments

                                                   Control Phase – Key Tools
               • Process Control Plans                       • Mistake Proofing                 • Statistical Process Control
     Control   • Gage Control Plans                          • 5S                               • Business Case Simulation Exercise
               • Preventative Maintenance Control Plans      • Standard Operating Procedure

                                      Lean Six Sigma; Deconstructing the Black Belt
                                           Presented by e-Zsigma (Canada) Inc.                                 September 10, 2010
32                                                 www-e-zsigma.com
PROCESS MANAGEMENT
All processes exist for the purpose of creating value
for the organization and its customers
How can something be of value if you don’t measure
it?
You Can`t...
 manage what you don’t measure
 control the outcomes of the things you value when you
 don’t manage them
 improve what you don’t measure



                    Lean Six Sigma; Deconstructing the Black Belt
                         Presented by e-Zsigma (Canada) Inc.        September 10, 2010
                                 www-e-zsigma.com
PROCESS METRICS
   Establish the difference between perception, intuition
   and reality
   Gather the facts for good decision making that will
   provide the basis for sound implementation
   Identify undetected problem areas/bottlenecks
   Understand process- which ones are important and which
   are not
   Evaluate customer satisfaction and the link to key
   processes
   Process and cost correlation
“Translate a practical problem into a statistical problem,
find a statistical solution and then translate into a
practical solution!”
                      Lean Six Sigma; Deconstructing the Black Belt
                           Presented by e-Zsigma (Canada) Inc.        September 10, 2010
                                   www-e-zsigma.com
LINKAGE TO CORPORATE OBJECTIVES
High-level Strategic Planning: Review Service Levels, back office process
and Voice of the Customer (VOC)
Business Priorities
  High customer impact
  Fastest or largest return
  Critical to business success
Identify Key business issues – Where do opportunities exist?
  Recognize operational processes affect profitability
  Define what the critical to business processes are and technology driven
  opportunities
Define the purpose and scope of everything that needs to get done:
  Establish financial targets, customer impact, key milestones timelines
Create deployment plans for metrics, communications, team setting,
funding, training, facilitation, program management. Fill the gaps and
supply the tactical pieces only on areas you can’t supply yourselves.
                                 Lean Six Sigma; Deconstructing the Black Belt
                                      Presented by e-Zsigma (Canada) Inc.        September 10, 2010
                                              www-e-zsigma.com
DEFINING A BLACK BELT
                              Accept and validate project mandate
A Black Belt is a fully       Coordinate and improvement projects
trained Lean Six Sigma
expert who leads              Applying the Lean Six Sigma
                              “Breakaway” project methodology
improvement teams,            Train project team members
works projects, and
mentors trainees              Provide analytical summaries and
                              interpretations to project team
                              Assist Champions in identification of
                              projects and preparation of
                              appropriate project mandates
                              Ensure project completion
                              Ensure projects are successfully
                Lean Six      transferred to process owners
                Sigma
                Project       Coach and mentor Green Belts
                              Providing feedback to senior
                              management on project progress and
                              results

                                                        September 10, 2010
BECOMING   A   LEAN SIX SIGMA BLACK BELT




                                                           Black Belt




           Lean Six Sigma; Deconstructing the Black Belt
                Presented by e-Zsigma (Canada) Inc.              September 10, 2010
                        www-e-zsigma.com
COURSE OUTLINE: GB/BB BLENDED
Session 1 Objectives: Define, Measure & Analyze

  Explain Lean & Six Sigma fundamentals (program and concepts)
  Establish & manage a project team
  Constructing a SIPOC and CTQ tree
  Complete a process flow map
  The eight sources of waste in lean organizations
  Construct a Cause & Effect diagram
  Use forced ranking tools prioritize information
  Prepare a Pareto analysis
  Design and execute a data collection plan
  Perform a measurement system analysis
  Apply basic statistics to describe process under review
  Prepare & interpret a histogram
  Complete process variability, capability and yield studies
                           Lean Six Sigma; Deconstructing the Black Belt
                                Presented by e-Zsigma (Canada) Inc.        September 10, 2010
                                        www-e-zsigma.com
COURSE OUTLINE
Session 2 Objectives: Analyze, Improve & Control

  Complete a Risk Analysis (FMEA, FTA)
  Value stream mapping and value-added analysis
  Process rationalization
  Mistake-proofing
  Rapid change-over (SMED)
  Kaizen, 5S, standardized work and cellular design
  Visual workplace and visual controls
  Perform basic Hypothesis Tests (“t-Test”, “F-Test”, Chi-Square, etc)
  Correlation & regression analysis
  Perform basic Analysis of Variance (ANOVA)
  Conduct a Simple Designed Experiment                      Note: Green Belt Program
  Create and interpret basic Control Charts                 is now completed! Black Belts
  Create and execute a process control plan                 continue to Session 3.
  Successfully close a project
                                Lean Six Sigma; Deconstructing the Black Belt
                                     Presented by e-Zsigma (Canada) Inc.        September 10, 2010
                                             www-e-zsigma.com
COURSE OUTLINE
Session 3 Objectives: Analysis (advanced)

Having completed the equivalent of Green Belt training in the first two
  sessions, participants will further explore the analytical tools that
  are the earmark of Lean Six Sigma Black Belts. Students will have
  spent a significant portion of this week exploring the advanced
  statistical and analytical tools that will be leveraged for the
  breakthrough process improvements they are looking for in their
  projects.

  Hypothesis testing (level II)
  Managing non-normal data and data transformation
  Probability models including Binomial & Poisson
  Non-parametric studies
  ANOVA & ANOM
                           Lean Six Sigma; Deconstructing the Black Belt
                                Presented by e-Zsigma (Canada) Inc.        September 10, 2010
                                        www-e-zsigma.com
COURSE OUTLINE
Session 4 Objectives: Improve & Control (Advanced)
   Design of Experiments (DOE)
   Conducting Historical DOE's
   Update process maps and associated metrics
   Design control plans and supporting control charts
   Prepare project recommendations & closing reports

Additional Topics Covered in Green Belt and Black Belt Programs
      Roles & Responsibilities
      Project Team Selection
      Customer Focus
      Project Management
      Team Leadership
      Change Management
      Interviewing Techniques
      Customer Surveys
      Benchmarking
      Successful Project Closure


                                      Lean Six Sigma; Deconstructing the Black Belt
                                           Presented by e-Zsigma (Canada) Inc.        September 10, 2010
                                                   www-e-zsigma.com
WHY ENROLL?
Expand your knowledge and skills in Lean Six Sigma
Look at opportunities, problems, root cause and solutions from a strategic
level.
Leverage your desire to help create an organization dedicated to process
improvement and the voice of the customer.
Become a change agent within your organization
Enhance your personal academic and business credentials and further
elevate your career
Comfortable and stimulating adult learning environment and facilities.
High quality instruction by world class practitioners.
Interactive learning environment, real life case studies, bonding with peers,
establishing friendships.



                           Lean Six Sigma; Deconstructing the Black Belt
                                Presented by e-Zsigma (Canada) Inc.         September 10, 2010
                                        www-e-zsigma.com
COURSE DATES
             16-Day Lean Six Sigma Black Belt
                     TORONTO SESSION:


              Session 1: October 18 – 21, 2010
              Session 2: November 15 - 18, 2010
              Session 3: December 13 – 16, 2010
               Session 4: January 17 - 20, 2011

         Register Online: www.e-zsigma.com/s_34.asp
Register in person: 416.593.8026 or ljamischak@e-zsigma.com


                      Lean Six Sigma; Deconstructing the Black Belt
                           Presented by e-Zsigma (Canada) Inc.        September 10, 2010
                                   www-e-zsigma.com
WHY E-ZSIGMA (CANADA) INC.?
Canada’s Pioneer in Lean Six Sigma for Training and Development

Industry Leader most widely accepted Canadian Certification

Lean Six Sigma BB Program considered among the highest

PDU's accredited by PMI

Recognized and highly-respected e-Zsigma brand.

Seasoned Lean Six Sigma instructors and professionals that have
hands-on project experience across a wide range of industry
sectors, spanning health care, government, manufacturing,
information technologies, telecommunications, financial
services, consumer goods and more.
                      Lean Six Sigma; Deconstructing the Black Belt
                           Presented by e-Zsigma (Canada) Inc.        September 10, 2010
                                   www-e-zsigma.com
SUMMARY
A Lean Six Sigma approach has proven itself over and
over again, yielding high-impact, high-value benefits for
organizations.
The methods and tools establish a discipline for process
improvements that drive measurable financial results.
Most importantly, Lean Six Sigma helps create a
winning culture that is hungry for operational
excellence, and it creates leaders who are empowered
to align their business processes to the voice of the
customer.

                     Lean Six Sigma; Deconstructing the Black Belt
                          Presented by e-Zsigma (Canada) Inc.          September 10, 2010
                                  www-e-zsigma.com
E-ZSIGMA SERVICES
PUBLIC SECTOR SPECIFIC TRAINING PROGRAMS
  E-Zsigma has designed an 5-day Blended Lean Six Sigma for Public
  Sector program tailored specifically for the Canadian Public Service
  industry. This program is the first of its kind in Canada.
CUSTOMIZED SOLUTIONS
  Our training programs can be customized to suit your needs and be
  delivered at your location.
PROJECT MANAGEMENT & LEADERSHIP
  Allowing our senior Master Black Belts to help you lead rapid and
  highly successful lean six sigma improvement projects
E-LEARNING SOLUTIONS
  We understand the hectic schedule of the healthcare professional.
  Therefore we offer a comprehensive eLearning program designed to
  meet your needs on your schedule.
                          Lean Six Sigma; Deconstructing the Black Belt
                               Presented by e-Zsigma (Canada) Inc.        September 10, 2010
 46                                    www-e-zsigma.com
QUALITY CAMPUS




     Lean Six Sigma; Deconstructing the Black Belt
          Presented by e-Zsigma (Canada) Inc.        September 10, 2010
47                www-e-zsigma.com
YOUR EXPECTATIONS FOR LEAN SIX SIGMA
     Improved patient experience and satisfaction
     Faster response to patient needs
     Increased job satisfaction & reduced stress for caregivers
     Improved, standardized & repeatable processes that are more predictable
     Between 20% and 60% reduction in Process Cycle Time
     Ability to focus resources on more value-added activities
     Greater than 50% Improvement in resource utilization
     Improved asset utilization: people, equipment & technology
     Reduced unit costs through increased capability
     Improved flow through elimination of bottlenecks (delays) and constraints (limiters)
     Greater than 30% gain in process capability
     Dramatic improvement in scheduling predictability – better process management
     Participative problem-solving
       Engaging the people who know and do the work… the team
     Recognition of the “human” side of lean and the need to manage change

                                    Lean Six Sigma; Deconstructing the Black Belt
                                         Presented by e-Zsigma (Canada) Inc.        September 10, 2010
48                                               www-e-zsigma.com
SO... WHAT’S KEEPING YOU UP AT NIGHT?




                 Lean Six Sigma; Deconstructing the Black Belt
                      Presented by e-Zsigma (Canada) Inc.        September 10, 2010
49                            www-e-zsigma.com
THE 5W2H TOOL
      Ask 5W questions & 2H questions to ensure you have
      covered all the key information:

          1.   What is the problem?
          2.   Why is it a problem? Highlight the “pain”
          3.   Where do we observe the problem? (location, products)
     5W
          4.   Who is impacted? (customers, businesses, functions)
          5.   When did we first observe the problem?

          1.   How did we observe the problem? Symptoms
     2H   2.   How often do we observe the problem? How many defects do we
               observe? Magnitude and trend.



                                                                     September 10, 2010
50
CLOSING REMARKS & DISCUSSION




Thank you for joining us today for this webinar and
we look forward to working with you in the future!


               Lean Six Sigma; Deconstructing the Black Belt
                    Presented by e-Zsigma (Canada) Inc.        September 10, 2010
                            www-e-zsigma.com

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Black Belt - Path To Excellence

  • 1. Welcome To… The Lean Six Sigma Black Belt Presented by e-Zsigma (Canada) Inc. Canada’s Leader in Lean, Six Sigma and Innovative Practices
  • 2. ABUNDANT CHALLENGES... Healthcare Telecommunications Wait times; rapid access to quality care Meeting changing customer expectation Cost-effective, sustainable delivery Increased competition platforms Asset and infrastructure management Increased demand and aging population Speed to market: New technology & Surge/capacity management & integration services Integration of emerging technologies Increased revenue & reduced cost Manufacturing Services Global competition Cost management Changes in exchange rates Information management Margin erosion Security & privacy Changes in customer demand patterns Sarbanes-Oxley and equivalents Bringing new product to market E-Service Availability of skilled labour Outsourcing & Off-shoring Bringing new services to market A “Balanced Scorecard” – transparency and accountability What are your challenges?
  • 3. EVER-INCREASING CUSTOMER FOCUS Organizations provide goods and services for customers – they define needs, quality and price Customer focus drives such questions as: Why are we in business? Where do we need to be in the future? What is the source of our “Competitive Advantage”? Customers bring alignment to cross-functional organizations: What drives purchasing behaviour? What is a defect; what constitutes value for the customer? Lean Six Sigma; Deconstructing the Black Belt Presented by e-Zsigma (Canada) Inc. September 10, 2010 www-e-zsigma.com
  • 4. UNDERSTANDING CUSTOMER NEEDS The “Voice of the Customer” (VOC) is the qualitative or quantitative expression of the things that drive customer satisfaction In a commercial setting, VOC are all those things that drive intent to purchase or repurchase (commitment) VOC is the true customer voice – in the words of the customer VOC needs to be constantly and accurately understood to create Value Lean Six Sigma; Deconstructing the Black Belt Presented by e-Zsigma (Canada) Inc. September 10, 2010 www-e-zsigma.com
  • 5. QUANTIFYING NEEDS I hope I don’t have to wait too long to see the doctor! Quantitative: “total minutes lapsed until meeting the doctor” Subjective: “Too Long” 5 September 10, 2010
  • 6. MEETING TARGETS BASED ON CT’S?... Capability to meet/exceed customer expectation? Reliability and stability of key (process) inputs resulting in predictable outcomes for customers? Need to “shift” the average? Increase production rate/capacity Reduce cycle time and cost Need to reduce variation? More “robust” processes Less non-conforming results (eliminate defects) Lean Six Sigma; Deconstructing the Black Belt 6 Presented by e-Zsigma (Canada) Inc. September 10, 2010 www-e-zsigma.com
  • 7. TWO POWERFUL APPROACHES… Six Sigma & Process Variation Lean & Process Efficiency • Describe variation! • Define customer value! • Analyze it! Y = f(x) • Identify waste! • Reduce it! • Eliminate waste! • Control it! • Increase flow of value! Example • wait times Reduced Reduced • cost variation average • handling • minutes, hours, days… After Lean Before Lean 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Before 6S After 6S Predictable, Controlled, Capable Efficient, High-Value, Low Cost Breakthrough Improvement! Lean Six Sigma; Deconstructing the Black Belt 7 Presented by e-Zsigma (Canada) Inc. September 10, 2010 www-e-zsigma.com
  • 8. MAXIMUM VALUE In the past quality programs focused on meeting the customer needs at virtually any cost, despite poor internal processes. Although companies managed to produce higher quality, costs escalated. The result...hard to be competitive when costs are too high! The Lean Six Sigma Approach: Yielding higher profits and maximizing value to the consumer, with high quality products and services at the lowest possible cost. Lean Six Sigma; Deconstructing the Black Belt Presented by e-Zsigma (Canada) Inc. September 10, 2010 www-e-zsigma.com
  • 9. LEAN & SIX SIGMA LEAN Patient/Customer Focused A Paradigm Shift in the Way Value is Defined 5 Key Principles & Eight Associated Sources of Waste A Value-Stream Based Approach: The “Flow” of Value (velocity) Tools & Techniques to Improve Value Creation Turn everyone’s “waste radar” on Reduce or Eliminate the Inhibitors to Value Creation Extremely Participative Problem-Solving , Event Driven, & Culturally Transforming SIX SIGMA Focus on process “problems”: Errors, Quality, Robust Process Design Key to Success: Focus on Understanding Process Variation Emphasis on data and analysis: Profound Knowledge! Project-Centric: Well Defined Goals & Measurable Results Rich & Diverse “Tool Box” for Analysis and Problem-Solving “At e-Zsigma, we teach people to do Six Sigma and we CHANGE people to do Lean” Lean Six Sigma; Deconstructing the Black Belt Presented by e-Zsigma (Canada) Inc. September 10, 2010 9 www-e-zsigma.com
  • 10. WHAT IS LEAN? It is an approach that shortens the lead-time from customer orders to delivery of parts or service, using the least amount of resources (people, equipment, money, materials, time, facilities, etc.) by focusing on eliminating all forms of waste. Lean is Customer Focused and Customer Driven. Every person in the supply chain, both internal and external to the organization is the customer of their upstream supplier. This creates a Pull System from the ultimate customer all the way back through all of the linked processes in the supply chain of products and services. Lean is a way of thinking – not just the application of a series of techniques. It is a whole systems approach that creates an environment where everyone is encouraged to continuously improve processes, products and services leading to higher levels of value-added activities. Lean helps organizations reduce costs, inventory, defects and scrap, cycle times and non-value-added activities, resulting in a more competitive, profitable, agile and market-responsive organization. Lean Six Sigma; Deconstructing the Black Belt Presented by e-Zsigma (Canada) Inc. September 10, 2010 www-e-zsigma.com
  • 11. LEAN PRINCIPLES? 2. Identify & map the Value Stream 1. Define value 3. Reduce waste from the customer’s and improve perspective flow 5. Pursue 4. Move from perfection “push” to “pull” from customer Lean Six Sigma; Deconstructing the Black Belt Presented by e-Zsigma (Canada) Inc. September 10, 2010 www-e-zsigma.com
  • 12. LEAN 101: DEFINING VALUE Lean Thinking: Any process step, activity or task that transforms the deliverables of a process such that the customer is aware of it AND is willing to pay for it is considered value added. Value is always stated in the eyes of the customer. © 1996 “Lean Thinking”, Womack & Jones Healthcare? Any activity or task that moves the patient through the diagnosis, treatment and prevention process, is performed correctly the first time, and the customer and/or community is willing to pay/fund for that activity or task since it does create value. Public Service? Any process step, activity or task that transforms the deliverables of a process such that the customer and the community is aware of it and is willing to fund and/or pay for it is considered value added. How do you or your organization define value? Because… If it is not value-added, then it is waste (aka “Muda”) Lean Six Sigma; Deconstructing the Black Belt Presented by e-Zsigma (Canada) Inc. September 10, 2010 12 www-e-zsigma.com
  • 13. NON-VALUE ADDED: WASTE Waste is defined as anything that does not add value for the customer. “Lean Thinking” requires an organizational culture that is intolerant of all forms of waste. The goal of Lean is to banish waste. Lean Six Sigma; Deconstructing the Black Belt 13 Presented by e-Zsigma (Canada) Inc. September 10, 2010 www-e-zsigma.com
  • 14. LEAN 101: THE EIGHT SOURCES OF WASTE Inventory & Storage: Brochures/booklets printed, stored and perhaps becoming obsolete (scrapped) Waiting or Delays: Delay in getting security clearance for a new hire Over-producing: Transportation: The movement of people, equipment, materials etc between building, cities, regions, provinces, etc Motion: Poor office layout (departments) resulting in people having to move around to get their regular work done Errors/Mistakes: Missing or incorrect information on a form or application resulting in rework and delays or even lost opportunity Over-processing: Producing reports in advance of when the information is needed, or information that may not be needed at all Underutilized human capability: People working on non-value added (see above) and not leveraging their talent and capability 9th Waste? Reprioritization Lean Six Sigma; Deconstructing the Black Belt Presented by e-Zsigma (Canada) Inc. September 10, 2010 14 www-e-zsigma.com
  • 15. LEAN 101: MAKING WASTE MORE VISIBLE Process Flow Maps Spaghetti Diagrams Value Stream Maps Cause and Effect Diagrams Five “Whys?” Pareto Charts Workplace Organization 5S (Sort, Set, Shine, Standardize, Sustain) Visual Workplace Process Reports, Audits and Assessments Lean Six Sigma; Deconstructing the Black Belt Presented by e-Zsigma (Canada) Inc. September 10, 2010 15 www-e-zsigma.com
  • 16. LEAN 101: VALUE STREAM MAPS Current State Value Stream Future State VSM Kaizen events linked to (future state) VSM plan Moving process towards the future state Focus on optimizing customer value Lean Six Sigma; Deconstructing the Black Belt Presented by e-Zsigma (Canada) Inc. September 10, 2010 www-e-zsigma.com
  • 17. LEAN 101: THE KAIZEN EVENT Planning Execution Follow-up September 10, 2010
  • 18. LEAN 101: WHAT IS KAIZEN? Kaizen: “Change for the better” Kaizen event: A focused, localized, intense, short- term (rapid) project to improve a process aka “Kaizen Blitz” “Kaizen Bursts” are opportunities identified on a Value Stream Map Small-scale improvements are easier and faster Risks are lower - typically have limited effect The accumulated effect of many Kaizens can often be greater than a single large improvement Lean Six Sigma; Deconstructing the Black Belt Presented by e-Zsigma (Canada) Inc. September 10, 2010 www-e-zsigma.com
  • 19. LEAN 101: THE 5S EVENT 1. Sort: Separate what is needed in the work area from what is not. Then… get rid of what isn’t needed! 2. Set in order: Organize what remains – in the order that it is required for the process or task 3. Shine: Clean and inspect the work area/workplace 4. Standardize: Standardize the cleaning, inspection, and safety practices – make it part of the job 5. Sustain: Establish an environment, including audits and visual cues, that ensure the culture of 5S “sticks” Note: Lean organizations have a standard that any “tool” must be able to be found within X seconds (example: 60 seconds). A tool can be a piece of equipment, a document, a file, etc. necessary for the work to proceed and value to be created. Lean Six Sigma; Deconstructing the Black Belt Presented by e-Zsigma (Canada) Inc. September 10, 2010 19 www-e-zsigma.com
  • 20. EXAMPLE: THE 5S EVENT Lean Six Sigma; Deconstructing the Black Belt Presented by e-Zsigma (Canada) Inc. September 10, 2010 20 www-e-zsigma.com
  • 21. LEAN 101: VISUAL WORKPLACE The Challenge: People not having access to the knowledge they need to do their jobs effectively and efficiently. What tasks? What priority? What target? The “correct” way? Which tools and where can I find them? Waste: Searching, asking, waiting, retrieving, reworking! Visual workplace: Providing vital information when and where it is needed. Easily understood & unambiguous work instructions on what to do, when, and how. Tools and methods to easily and reliably identify process errors ad omissions as quickly as possible - at the source. Real-time performance feedback so employees know where they stand in terms of meeting goals or targets. Encourage alignment of activities across and up and down the organization so that they congruent with strategic goals and objectives. Promote and communicate cultural change in the organization, specifically the lean evolution. Lean Six Sigma; Deconstructing the Black Belt Presented by e-Zsigma (Canada) Inc. September 10, 2010 21 www-e-zsigma.com
  • 22. EXAMPLE: VISUAL WORKPLACE “Access to information and tools to do the job” Lean Six Sigma; Deconstructing the Black Belt Presented by e-Zsigma (Canada) Inc. September 10, 2010 22 www-e-zsigma.com
  • 23. LEAN 101: ASSESSMENTS & AUDITS Creates accountability & encourages shared commitment for performance Tracking trends and (lean) improvement activities “We measure our performance”: a part of our culture “You can’t manage what you don’t measure” Measures help control the processes Metrics aligned to corporate goals and strategy Ex. Customer survey data Using & reporting the “wrong” metric can be more damaging than having no metric at all! Lean Six Sigma; Deconstructing the Black Belt Presented by e-Zsigma (Canada) Inc. September 10, 2010 23 www-e-zsigma.com
  • 24. LEAN 101: ELIMINATE WASTE BY… • Reduction/elimination of batches • Five S – Visual Workplace • Single piece flow • Quick Changeover • Continuous flow • Standardized Work • Improved process control • Andon System, Pitch • Reduced process variation • Materials replenishment • Faster reaction to problems • Kanban, FIFO • Shorter lead times • Supermarket Pull System • Reduced forecasts • Total Productive Maintenance • Takt time and demand leveling • Cellular Design/Layout • Just in Time • Work cells • Touch once principle • Error Proofing • “Pull” systems design • Kaizen improvement events September 10, 2010 24
  • 25. YOUR EXPECTATIONS FOR LEAN Improved customer experience and satisfaction Faster response to client needs Increased job satisfaction & reduced stress for staff Improved, standardized & repeatable processes that are more predictable Reduction in Process Cycle Time Ability to focus resources on more value-added activities Improved asset utilization: people, equipment & technology Improved flow through elimination of bottlenecks (delays) and constraints (limiters) Dramatic improvement in scheduling predictability – better process management Participative problem-solving Engaging the people who know and do the work… the team Recognition of the “human” side of lean and the need to manage change Lean Six Sigma; Deconstructing the Black Belt Presented by e-Zsigma (Canada) Inc. September 10, 2010 25 www-e-zsigma.com
  • 26. WHAT IS SIX SIGMA? Six Sigma is a improvement approach that: Focuses on issues that are critical to customers Systematically identifies, reduces and eliminates causes of variation, errors and defects that occur in key business processes By doing this, profitability is dramatically improved Six Sigma is several things: a measure of performance a strategy for business improvement a methodology for managing projects a philosophy of eliminating defects Lean Six Sigma; Deconstructing the Black Belt Presented by e-Zsigma (Canada) Inc. September 10, 2010 www-e-zsigma.com
  • 27. SIX SIGMA: A FOCUS ON VARIATION While Lean focuses on eliminating waste (NVA), Six Sigma tools and methods focus on dramatic understanding and management of process variation. Eliminate errors & defects… Minimize variation… A Paradigm Shift… “We are going to shift the paradigm from fixing products to fixing and developing processes, so that they produce nothing but perfection or close to it!” Jack Welch, CEO, General Electric GE’s launch of the Six Sigma Management System, 1995 Lean Six Sigma; Deconstructing the Black Belt Presented by e-Zsigma (Canada) Inc. September 10, 2010 www-e-zsigma.com
  • 28. SIX SIGMA 101: “Y IS A FUNCTION OF X” The heart of “Six Sigma” thinking The phrase “Y is a function of X" means that the value of Y (process outcome) depends upon the value of x (process inputs), so Y can be written in terms of X. This philosophy has evolved into a robust, powerful problem-solving and process improvement methodology used by hundreds of thousands of organizations world-wide Automotive, aerospace and manufacturing Banking, insurance and financial services What sectors, if any, have not Hospitality and service industries leveraged in some shape or form, Six Government and public sector Sigma thinking and methods? Healthcare Lean Six Sigma; Deconstructing the Black Belt Presented by e-Zsigma (Canada) Inc. September 10, 2010 28 www-e-zsigma.com
  • 29. SIX SIGMA 101: CAUSE & EFFECT Lean Six Sigma; Deconstructing the Black Belt Presented by e-Zsigma (Canada) Inc. September 10, 2010 29 www-e-zsigma.com
  • 30. SIX SIGMA 101: THE IMPORTANT QUESTIONS 1. Do I fully understand the customer requirements? 1 (Target and Tolerance) 2. How much variation is in the process I use to meet 2 my customer’s needs? 3. How well does my process meet my customer’s needs? How often? What is the impact on Cycle 3 time? Safety? Customer Satisfaction? 4. What are the root cause(s) of the process variation? 4 Y = F(X1..Xi) 5. Can I reduce variation within the process to reduce 5 the defects? (If not, get a new process.) 6. Can I center the current process on target? 6 Lean Six Sigma; Deconstructing the Black Belt Presented by e-Zsigma (Canada) Inc. September 10, 2010 30 www-e-zsigma.com
  • 31. SIX SIGMA 101: DMAIC APPROACH Define… process improvement goals that are consistent with customer demands and the enterprise strategy. Measure… key aspects of the current process and collect relevant data. Analyze… the data to verify cause-and-effect relationships. Determine what the relationships are, and attempt to ensure that all factors have been considered. Improve… or optimize the process based upon data analysis using techniques like Design of Experiments. Control… to ensure that any deviations from target are corrected before they result in defects. Set up pilot runs to establish process capability, move on to production, set up control mechanisms and continuously monitor the process. Source: www.isixsigma.com Lean Six Sigma; Deconstructing the Black Belt Presented by e-Zsigma (Canada) Inc. September 10, 2010 31 www-e-zsigma.com
  • 32. LEAN SIX SIGMA 101: ROBUST “TOOL BOX” Define Phase – Key Tools •VOC (Voice Of the Customer) •Cost of poor quality •“Critical To” Tree (CT Tree) Define •Project scoping and problem statement •Change management •High level process map •Team identification •Project contract Measure Phase – Key Tools •Process Mapping (including SIPOC) •Control Charts Basics •Binomial Distribution Statistics •Rolled Throughput Yield (RTY) •Measurement System Analysis •Graphical Analysis and Techniques •Basic Statistics (MSA) •Data Collection Plan Measure •Central Limit Theorem (CLT) •Process Capability •Failure Mode & Effects Analysis (FMEA) •Cause and Effect (C&E) Matrix •Cause and Effect (C&E) Diagram Analyze Phase - Key Tools •Advanced Graphical Analysis •Statistical Analysis •Confidence Intervals oMulti-Vari Studies oHypothesis Testing •Power and Sample Size oMain Effects Plots Means Analyze oInteraction Plots Variation Chi Square Non-normal data oCorrelation Proportion Analysis of Variance oRegression Counts Analysis of Means Improve Phase - Key Tools •Modeling Designs of Experiments •Robust Design of Experiments •Screening Design of Experiments Improve •Response Surface Design of •Survey Design of Experiments •Multiple Regression Experiments Control Phase – Key Tools • Process Control Plans • Mistake Proofing • Statistical Process Control Control • Gage Control Plans • 5S • Business Case Simulation Exercise • Preventative Maintenance Control Plans • Standard Operating Procedure Lean Six Sigma; Deconstructing the Black Belt Presented by e-Zsigma (Canada) Inc. September 10, 2010 32 www-e-zsigma.com
  • 33. PROCESS MANAGEMENT All processes exist for the purpose of creating value for the organization and its customers How can something be of value if you don’t measure it? You Can`t... manage what you don’t measure control the outcomes of the things you value when you don’t manage them improve what you don’t measure Lean Six Sigma; Deconstructing the Black Belt Presented by e-Zsigma (Canada) Inc. September 10, 2010 www-e-zsigma.com
  • 34. PROCESS METRICS Establish the difference between perception, intuition and reality Gather the facts for good decision making that will provide the basis for sound implementation Identify undetected problem areas/bottlenecks Understand process- which ones are important and which are not Evaluate customer satisfaction and the link to key processes Process and cost correlation “Translate a practical problem into a statistical problem, find a statistical solution and then translate into a practical solution!” Lean Six Sigma; Deconstructing the Black Belt Presented by e-Zsigma (Canada) Inc. September 10, 2010 www-e-zsigma.com
  • 35. LINKAGE TO CORPORATE OBJECTIVES High-level Strategic Planning: Review Service Levels, back office process and Voice of the Customer (VOC) Business Priorities High customer impact Fastest or largest return Critical to business success Identify Key business issues – Where do opportunities exist? Recognize operational processes affect profitability Define what the critical to business processes are and technology driven opportunities Define the purpose and scope of everything that needs to get done: Establish financial targets, customer impact, key milestones timelines Create deployment plans for metrics, communications, team setting, funding, training, facilitation, program management. Fill the gaps and supply the tactical pieces only on areas you can’t supply yourselves. Lean Six Sigma; Deconstructing the Black Belt Presented by e-Zsigma (Canada) Inc. September 10, 2010 www-e-zsigma.com
  • 36. DEFINING A BLACK BELT Accept and validate project mandate A Black Belt is a fully Coordinate and improvement projects trained Lean Six Sigma expert who leads Applying the Lean Six Sigma “Breakaway” project methodology improvement teams, Train project team members works projects, and mentors trainees Provide analytical summaries and interpretations to project team Assist Champions in identification of projects and preparation of appropriate project mandates Ensure project completion Ensure projects are successfully Lean Six transferred to process owners Sigma Project Coach and mentor Green Belts Providing feedback to senior management on project progress and results September 10, 2010
  • 37. BECOMING A LEAN SIX SIGMA BLACK BELT Black Belt Lean Six Sigma; Deconstructing the Black Belt Presented by e-Zsigma (Canada) Inc. September 10, 2010 www-e-zsigma.com
  • 38. COURSE OUTLINE: GB/BB BLENDED Session 1 Objectives: Define, Measure & Analyze Explain Lean & Six Sigma fundamentals (program and concepts) Establish & manage a project team Constructing a SIPOC and CTQ tree Complete a process flow map The eight sources of waste in lean organizations Construct a Cause & Effect diagram Use forced ranking tools prioritize information Prepare a Pareto analysis Design and execute a data collection plan Perform a measurement system analysis Apply basic statistics to describe process under review Prepare & interpret a histogram Complete process variability, capability and yield studies Lean Six Sigma; Deconstructing the Black Belt Presented by e-Zsigma (Canada) Inc. September 10, 2010 www-e-zsigma.com
  • 39. COURSE OUTLINE Session 2 Objectives: Analyze, Improve & Control Complete a Risk Analysis (FMEA, FTA) Value stream mapping and value-added analysis Process rationalization Mistake-proofing Rapid change-over (SMED) Kaizen, 5S, standardized work and cellular design Visual workplace and visual controls Perform basic Hypothesis Tests (“t-Test”, “F-Test”, Chi-Square, etc) Correlation & regression analysis Perform basic Analysis of Variance (ANOVA) Conduct a Simple Designed Experiment Note: Green Belt Program Create and interpret basic Control Charts is now completed! Black Belts Create and execute a process control plan continue to Session 3. Successfully close a project Lean Six Sigma; Deconstructing the Black Belt Presented by e-Zsigma (Canada) Inc. September 10, 2010 www-e-zsigma.com
  • 40. COURSE OUTLINE Session 3 Objectives: Analysis (advanced) Having completed the equivalent of Green Belt training in the first two sessions, participants will further explore the analytical tools that are the earmark of Lean Six Sigma Black Belts. Students will have spent a significant portion of this week exploring the advanced statistical and analytical tools that will be leveraged for the breakthrough process improvements they are looking for in their projects. Hypothesis testing (level II) Managing non-normal data and data transformation Probability models including Binomial & Poisson Non-parametric studies ANOVA & ANOM Lean Six Sigma; Deconstructing the Black Belt Presented by e-Zsigma (Canada) Inc. September 10, 2010 www-e-zsigma.com
  • 41. COURSE OUTLINE Session 4 Objectives: Improve & Control (Advanced) Design of Experiments (DOE) Conducting Historical DOE's Update process maps and associated metrics Design control plans and supporting control charts Prepare project recommendations & closing reports Additional Topics Covered in Green Belt and Black Belt Programs Roles & Responsibilities Project Team Selection Customer Focus Project Management Team Leadership Change Management Interviewing Techniques Customer Surveys Benchmarking Successful Project Closure Lean Six Sigma; Deconstructing the Black Belt Presented by e-Zsigma (Canada) Inc. September 10, 2010 www-e-zsigma.com
  • 42. WHY ENROLL? Expand your knowledge and skills in Lean Six Sigma Look at opportunities, problems, root cause and solutions from a strategic level. Leverage your desire to help create an organization dedicated to process improvement and the voice of the customer. Become a change agent within your organization Enhance your personal academic and business credentials and further elevate your career Comfortable and stimulating adult learning environment and facilities. High quality instruction by world class practitioners. Interactive learning environment, real life case studies, bonding with peers, establishing friendships. Lean Six Sigma; Deconstructing the Black Belt Presented by e-Zsigma (Canada) Inc. September 10, 2010 www-e-zsigma.com
  • 43. COURSE DATES 16-Day Lean Six Sigma Black Belt TORONTO SESSION: Session 1: October 18 – 21, 2010 Session 2: November 15 - 18, 2010 Session 3: December 13 – 16, 2010 Session 4: January 17 - 20, 2011 Register Online: www.e-zsigma.com/s_34.asp Register in person: 416.593.8026 or ljamischak@e-zsigma.com Lean Six Sigma; Deconstructing the Black Belt Presented by e-Zsigma (Canada) Inc. September 10, 2010 www-e-zsigma.com
  • 44. WHY E-ZSIGMA (CANADA) INC.? Canada’s Pioneer in Lean Six Sigma for Training and Development Industry Leader most widely accepted Canadian Certification Lean Six Sigma BB Program considered among the highest PDU's accredited by PMI Recognized and highly-respected e-Zsigma brand. Seasoned Lean Six Sigma instructors and professionals that have hands-on project experience across a wide range of industry sectors, spanning health care, government, manufacturing, information technologies, telecommunications, financial services, consumer goods and more. Lean Six Sigma; Deconstructing the Black Belt Presented by e-Zsigma (Canada) Inc. September 10, 2010 www-e-zsigma.com
  • 45. SUMMARY A Lean Six Sigma approach has proven itself over and over again, yielding high-impact, high-value benefits for organizations. The methods and tools establish a discipline for process improvements that drive measurable financial results. Most importantly, Lean Six Sigma helps create a winning culture that is hungry for operational excellence, and it creates leaders who are empowered to align their business processes to the voice of the customer. Lean Six Sigma; Deconstructing the Black Belt Presented by e-Zsigma (Canada) Inc. September 10, 2010 www-e-zsigma.com
  • 46. E-ZSIGMA SERVICES PUBLIC SECTOR SPECIFIC TRAINING PROGRAMS E-Zsigma has designed an 5-day Blended Lean Six Sigma for Public Sector program tailored specifically for the Canadian Public Service industry. This program is the first of its kind in Canada. CUSTOMIZED SOLUTIONS Our training programs can be customized to suit your needs and be delivered at your location. PROJECT MANAGEMENT & LEADERSHIP Allowing our senior Master Black Belts to help you lead rapid and highly successful lean six sigma improvement projects E-LEARNING SOLUTIONS We understand the hectic schedule of the healthcare professional. Therefore we offer a comprehensive eLearning program designed to meet your needs on your schedule. Lean Six Sigma; Deconstructing the Black Belt Presented by e-Zsigma (Canada) Inc. September 10, 2010 46 www-e-zsigma.com
  • 47. QUALITY CAMPUS Lean Six Sigma; Deconstructing the Black Belt Presented by e-Zsigma (Canada) Inc. September 10, 2010 47 www-e-zsigma.com
  • 48. YOUR EXPECTATIONS FOR LEAN SIX SIGMA Improved patient experience and satisfaction Faster response to patient needs Increased job satisfaction & reduced stress for caregivers Improved, standardized & repeatable processes that are more predictable Between 20% and 60% reduction in Process Cycle Time Ability to focus resources on more value-added activities Greater than 50% Improvement in resource utilization Improved asset utilization: people, equipment & technology Reduced unit costs through increased capability Improved flow through elimination of bottlenecks (delays) and constraints (limiters) Greater than 30% gain in process capability Dramatic improvement in scheduling predictability – better process management Participative problem-solving Engaging the people who know and do the work… the team Recognition of the “human” side of lean and the need to manage change Lean Six Sigma; Deconstructing the Black Belt Presented by e-Zsigma (Canada) Inc. September 10, 2010 48 www-e-zsigma.com
  • 49. SO... WHAT’S KEEPING YOU UP AT NIGHT? Lean Six Sigma; Deconstructing the Black Belt Presented by e-Zsigma (Canada) Inc. September 10, 2010 49 www-e-zsigma.com
  • 50. THE 5W2H TOOL Ask 5W questions & 2H questions to ensure you have covered all the key information: 1. What is the problem? 2. Why is it a problem? Highlight the “pain” 3. Where do we observe the problem? (location, products) 5W 4. Who is impacted? (customers, businesses, functions) 5. When did we first observe the problem? 1. How did we observe the problem? Symptoms 2H 2. How often do we observe the problem? How many defects do we observe? Magnitude and trend. September 10, 2010 50
  • 51. CLOSING REMARKS & DISCUSSION Thank you for joining us today for this webinar and we look forward to working with you in the future! Lean Six Sigma; Deconstructing the Black Belt Presented by e-Zsigma (Canada) Inc. September 10, 2010 www-e-zsigma.com