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6-Sigma Lean 101
1. 6-Sigma & Lean 101
ISandR Services Presents -
A Lean-SS overview, not detailed presentation
Introduction of Six-Sigma Tools – without stats
DMAIC process & tools associated with each phase
Introduction of Lean Concepts
Identification of Waste
Lean Improvements in Gemba (Workplace)
Sustainability
Business Score Card
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2. 6-Sigma & Lean 101
Process Improvement – “Describe & Measure”
“When you can measure what you are speaking
about, and express it in numbers, you know something about
it; but when you cannot measure it, when you cannot express
it in numbers, your knowledge is of a meager and
unsatisfactory kind….”
William Thompson (Lord Kelvin), 1824-1907
“If you can't describe what you are doing as a
process, you don't know what you're doing.”
W. Edwards Deming, 1900-1993
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3. 6-Sigma & Lean 101
The Average and the Standard Deviation are Most Important
X = (∑ xi ) / n AVERAGE
S=
∑ (x − X ) i
2
STANDARD
n −1 DEVIATION
These metrics are important, but we will keep this simple
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4. 6-Sigma & Lean 101
Process Improvement – “The Family Vacation” Example
Start with the end in mind – THE GOAL
Analogy of the family vacation
Would you start with how to pack better?
Where, What, Who - Destination, Activities, You &…? DEFINE
Activities, Accommodations, Alt Options, Where is Start
Route - how far/long, transport vehicle MEASURE
Cost of alternatives ANALYZE
What to take - backpacks or suitcase ANALYZE
What can be done better from last time IMPROVE
Stick to budget & plan CONTROL
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5. 6-Sigma & Lean 101
What is 6-Sigma? A Short History
Improvement tools known for a LONG time
Popularized by GE, Motorola, et al
Collection of tools with standardize usage!
About BEST in class
About dramatic improvement – not stats
ASQ – “80% of tools are not statistical”
Process based on D M A I C
- Define - Measure - Analyze - Improve - Control
Presentation parallels book “Stat Free Six Sigma” – P. Gupta (Accelper)
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6. 6-Sigma & Lean 101
What is the Significance of the Words “6-Sigma”?
What does “6-Sigma” imply?
Process of 3 defective parts per million (3ppm)
Depends on
Customers specified limits (Upper & Lower Bound)
Average in the process (Average or Mean)
Variability in the process (Standard Deviation)
Not all processes need to be 6-Sigma Capable
A process that meets customer specifications by providing
consistent accurate results with no variation - near zero defects
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7. 6-Sigma & Lean 101
What is 6-Sigma? Statistics Concepts, Without Statistics
Examples
Mean = X
Low Hi
Customer Production –
Limit Limit
specifies size & location
LL and UL of hole in a part
Distribution: Service -
Gaussian Variation = 2 σ preparation of
Random tabloid content
Normal
Error & distribution,
early vs late
Characterizing The Process
The Process 6σ
1 sigma (σ)
½ width at ½ height Good Mean
Good Variability
Process Capability Good Capability
Closest Limit – X
CpK = [ Closest Limit – X ]
3σ “Higher ‘sigma’ is better to avoid quality escapes!”
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8. 6-Sigma & Lean 101
What Process Capability?
mean
LL HL
variation
This is previous slide
Good Mean Poor Mean Poor Mean
Good Variability Good Variability Poor Variability
Good Capability Poor Capability Poor Capability
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9. 6-Sigma & Lean 101
What Makes 6-Sigma Work?
When everyone understands the Cost of Poor Quality
In / ext failures, inspection, testing, rework (calc $$s)
Align VOC and biz needs for big improvements
S M A R T goals
Specific – why, what, when, who, where, finally how
Measurable – which metrics: how much / many, B4 & after
Attainable – have resources: attitudes, abilities, finances
Realistic – challenging believable & achievable
Timely* – reasonable duration to complete with urgency
Visible with Executive Management Support
Employees encouraged to take risks (Deming, “Drive out fear”)
* Could be “Tangible” – can experience with senses makes it more realistic and measurable
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10. 6-Sigma & Lean 101
What makes 6-Sigma Work? Culture Change Response Curve
The energy to overcome an existing culture, make improvements
and sustain change takes effort, time and money
The paths are different for each organization.
Effort/Cost/Resistance
A I Organization B
M C
D
Organization A
Present Time Future
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11. 6-Sigma & Lean 101
Customer Surveys – Voice Of the Customer (VOC)
Research on customer satisfaction:
Determine what is quality [“Q is what the customer says it is”]
Find out what competitors are doing [better]
Define quality performance measures to identify defects [Pareto]
Identify factors to give a competitive edge [SWOT]
Identify urgent problems [low hanging fruit 1st with best ROI]
Use multiple instruments to ID customer satisfaction. The
opportunity to collect misleading or useless information is possible
with just one instrument.
Surveys, Focus Group, Face-to-face, (Dis)satisfaction cards,
Competitive Shopping
- to gain information on -
Stated Needs, Real Needs, Perceived Needs, Cultural/Unstated
Needs, Unintended Needs (Distinguish: Wants, Needs, Dissatisfiers)
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12. 6-Sigma & Lean 101
Customer Surveys - VOC
Customer Response to Survey
HI
MUST Improve
Maintain Good Work
Feature Importance
Opportunity Being & Performance
Lost
Maintain Current Over-effort for little
Status value
LO Feature/Process Satisfaction HI
What was expected and experienced, what was the level of satisfaction and importance
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13. 6-Sigma & Lean 101
How to look for and improve the PROBLEMS
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14. 6-Sigma & Lean 101
What is DMAIC?
Define – “the charter”: why do this (ROI / VOC), which process
(Pareto), achieve what, measure what (errors, FTT), which
resources, who’s involved, how to accomplish (brainstorm /
fishbone), what is goal, when complete, what’s not included, …
Measure – specify info sources to measure, precision, frequency
of measurement, instruments used to measure, …
Analyze – examine patterns, correlate dependent & independent
variables (SIPOC / histograms / scatter-plots), root-cause, failure
influence (FMEA-SOD), …
Improve – development of alternatives to reduce cost, variation,
& waste or for faster delivery, …
Control – sustaining gains from project and maintaining process
control
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15. 6-Sigma & Lean 101
What are Tools Used with DMAIC?
Define Measure Analyze Improve
Phase Tools Brief Description
D Project Priority Index PPI = (Benefit/Cost) X (Probability of Success/Time to complete in years)
Time < .5
Estimated Savings/Cost > 2.0
Recommended PPI > 4.0
D Pareto A graphical tool to prioritize various defects to identify the most important one
D Process Map A graphical description of activities and decision points
D Kano's Analysis A graphical tool to identify customer critical requirements, including customers' `love to have' requirements
D SIPOC An excellent tabular capture of most of the process constraints
D CTQ Operational critical-to-quality characteristics related to the customer expectation
D Project Charter Project plan with clearly-defined goals and milestones
M Cost of Quality Breakdown of product or service cost related to appraisal, failures and prevention
M DPU A product measurement, which is a ratio of the number of defects observed per unit verified
M Yield The percent of process output with no error or defect.
A DPMO A process measurement, which is the DPU normalized to the product or process complexity
A Sigma Level A business measurement, estimated from DPMO, commonly used for benchmarking
A Average Typical performance
I Range Range of performance (maximum – minimum)
“Stat Free Six Sigma”, Gupta
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16. 6-Sigma & Lean 101
What are Tools Used with DMAIC?
Improve Control
Phase Tools Brief Description
I Standard Deviation More accurate estimate of performance range
I Statistical Thinking Ability to distinguish assignable causes from random causes of variation
I Root Cause Analysis Fishbone diagram consisting causes that produce effects - materials, machines, methods, man, nature,
measurements
I FMEA Failure Mode and Effects Analysis for anticipating problems
I Scatter Plot Graphical display of relationship between output (dependent) and input (independent) variables
I Visual Regression Analysis Estimate of relationship between input and output variables
I Component Search To identify the defective part in an assembly by exchanging the questionable part between 'good' and
'bad' units
I Comparative Tests - Improving Means Evaluating significance of shift or change in the process means
I Comparative Tests - Improving Variance Ratio of variances between the current and reduced variances
I Full Factorial Experiment Evaluating various combinations of multiple variables to determine the right combination for best
performance. Total combinations = level to the power variables (Lv, e.g., 23 = 8)
C Process Thinking (4P Model) A logical building block of the process management for achieving excellence. 4P => Prepare 4Ms,
Perform Well, Perfect on target, Progress by reducing inconsistencies
C Management Review A review meeting led by the leader to ensure targeted performance is achieved and to identify
necessary actions to sustain improved performance
C Control Chart Graphical tool to sustain normal (without known problems) behavior of the process
C Scorecard Measure of business performance for identifying new opportunities
“Stat Free Six Sigma”, Gupta
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17. 6-Sigma & Lean 101
Good Charter Components?
Business need - cost reduction, margin increase, government
compliance or increased customer satisfaction.
Business advantage – ROI? - case should show the business
need as dollars ($$s) to substantiate which project’s selection.
High-level project scope – sponsor’s vision of the project.
Critical to success factors – ID project, team, deliverables,
schedule, what is needed for project success: scope, schedule,
Constitution
cost, or quality.
Project constraints, risks and assumptions – document these
conjectures; revisit during project to see if these remain true.
Bill of Rights
Authority of the project manager – what is the responsibility of
Plans Change
the project manager, to clarify their role assists with future decisions
(controversial?) dealing with the stakeholders and organization.
Signatures – demonstrates management importance & support
Example of form to assist in
addressing items to consider
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18. 6-Sigma & Lean 101
DMAIC Tools – PARETO Ranking of Issues
Customer's Order
Complaints *
Late 192
Defective 44 Minitab
Rude CS 37
No call back 23
Wrong Item 72
Incomplete 101
Refund late 17
Wrong Price 15
No Gift Card 3
Figure out cost/benefit Excel
Missing item 2
Not New - Used 12
Never Received 7
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19. 6-Sigma & Lean 101
Process Map (This is the “as is” also need the “proposed”)
ORDER FULLFILLMENT SWIMLANE FLOWCHART
CUSTOMER SERVICE
ACCOUNTING
WAREHOUSE
Possibilities for
improvement? ENGINEERING
Loops and
SHIPPING
Many Crossings & RECEIVING
Created with Visio
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20. 6-Sigma & Lean 101
What is SIPOC?
Look for relationships so Input improves stability in Output
Suppliers – individuals providing Suppliers Inputs Process Outputs Customers
resources
Paper Cliffnotes Bookclubs
Graphics Figs & Photos DVDs & CDs Audio books
Electronics Electronic Docs Abstracts Web Whit Papers
Inputs – info, materials & Binders
Album of Related
work
Libraries
Services Authors
Original Written
Manuscript
Exercises Consultants
Training
Process – value added
Scholarly Educators &
Researchers Instructional
References Trainers
Info
transformation steps Editors
Suggested Adds &
Deletes
Magazines
Library Reference Docs
Outputs – final product or service
Process for Publishing and Distribution of Scholarly Research and Textbook Materials
Customers – entity finding value
Graphics
Publisher First
Authors submits Editor Process
Approval Printing Shipment
submit > figures > checks > > > Distributo >
& Printing Promotio of Orders
content and content r Orders
in output photos
Schedule n
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21. 6-Sigma & Lean 101
What is SWOT?
Internal Characteristics to Business
STRENGTH – list and find how to improve these
WEAKNESSES – list and find how to minimize these
External Characteristics to Business (in Industry or
with the Competition)
OPPORTUNITIES – what can you take advantage of
THREATS – what should you avoid
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22. 6-Sigma & Lean 101
Cost of Quality
The “cost of quality” isn’t the price of creating a quality product or
service. It’s the cost of NOT creating a quality product or service.
Prevention Costs - New product review, Quality planning, Supplier capability
surveys, Process capability evaluations, Quality improvement team meetings, Quality
improvement projects, Quality education and training, Appraisal Costs
Inspection Costs - measuring, evaluating or auditing products or services to
assure conformance to quality standards and performance requirements; Incoming
and source inspection/test of purchased material; In-process and final inspection/test;
Product, process or service audits; Calibration of measuring and test equipment;
Associated supplies and materials; Failure Costs
Internal Failure Costs - Failure costs occurring prior to delivery or shipment of the
product, or the furnishing of a service, to the customer. Scrap, Rework, Re-
inspection, Re-testing, Material review, Downgrading
External Failure Costs - Failure costs occurring after delivery or shipment of the
product -- and during or after furnishing of a service -- to the customer. Processing
customer complaints, Customer returns, Warranty claims, Product recalls
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23. 6-Sigma & Lean 101
Brainstorming – Fishbone / Cause-Effect / Ishikawa
This is a way of analyzing problem and get to the root cause
The effect is usually negative - a problem
The problem should be specific and clearly stated
The ideas are generated by using brainstorming (vocal or silent)
Keep the group to asking themselves “what would cause the problem?”
Keep attention on the effect of the problem – not criticism or how to fix
The goal is to find as many sources for variation as possible that cause the
problem
Measurements Machine Man
PM vs AM Shift
Temp
RMAs
Effect
Season Storage
Preparation
Methods Mother Nature Materials
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24. 6-Sigma & Lean 101
FMEA – Failure Mode Effects Analysis
Determine what can go wrong, the severity, and how to avoid it
Risk Assessment should be a log controlled number for tracking the
FMEA Number: This
document
Probabilitydesign responsibility: Which department or group is responsible for
The of
The part number, name, or other description
Effect of Failure Occurrence this design? for FMEA preparation
The person responsible
Part Number & Function Severity The date the FMEAcomponent partand any necessary revision level
The subsystem or
was prepared
number getting detailed analysis
Potential Failure Ability toThe component function
Detect mode
The potential failure
Risk Priority Number
The potential effect of failure
Cause of Failure The potential cause of failure
What are the current controls in place to prevent Re-evaluation
Corrective Actions & the cause from
Control for Failure O is theoccurring? this failure mode will occur. This index is from 1 to 10
probability
with 1 being virtually no chance and 10 being near certainty of
occurrence.
S is the severity of the effect of the failure on the rest of the system if the
failure occurs. Values are from 1 to 10. A value of 1 means the user
will be unlikely to notice with a 10 meaning that the safety of the
user is in jeopardy.
D is a measure of the effectiveness of the current controls to identify the
potential weakness or failure prior to release to production. This
index ranges from 1 to 10. A value of 1 means this will certainly be
caught whereas a value of 10 indicates the design weakness would
most certainly make it to final production without detection.
RPN The Risk Priority Number is the product of the indices from the
previous three columns. RPN = O•S•D
The actions then are based upon what items either have the highest RPN
and/or where the major safety issues are.
There is a column for actions to be taken to reduce the risk, a column for
the responsibility and finally a column for the revised RPN once
corrective action is implemented.
FMECA provides a disciplined approach for the engineering team to
evaluate designs to ensure that all the possible failure modes have
been taken into consideration.
QCI – Indiana Quality Council
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25. 6-Sigma & Lean 101
Average, Standard Deviation, Max Value, Min Value in Data Sets
Average Standard Maximum Minimum
Deviation
Active Cell
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26. 6-Sigma & Lean 101
Evaluating Data
Quantify what you want to improve and make decisions based on the data.
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27. 6-Sigma & Lean 101
Comparative Tests - Improving Means & Variance - Visualization
Use Methodsfor determining significant Make decisions Easier
T-test to Visualize the Data to difference in Means
MiddleF-test for determining significant difference in Variance
Data Range
50% of MeanData
6 Sampl es - Compar i son of Means and Var i at i on 6 Sampl es - Compar i son of Means and Var i at i on
2.0 2.0
1.8 1.8 1.78123
1.68022
1.6 1.6
Dat a
Dat a
1.52912
1.45738 1.47119 1.47366
1.4 1.4
1.2 1.2
1.0 1.0
sample1 sample2 sample3 sample4 sample5 sample6 sample1 sample2 sample3 sample4 sample5 sample6
Same Mean Diff Mean Same Mean Same Mean Diff Mean Same Mean
Same Vari(1) Same Vari(2) Diff Vari(3) Same Vari Same Vari Diff Vari
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28. 6-Sigma & Lean 101
Yield - Efficiency of the Process
%Yield most familiar for defect eval
Units Pr oduced − DefectiveUnits
%Yield = *100
Units Pr oduced
500 − 26
%Yield = *100 = 94.8%
500
DPU TheseTotalDefecformulas
DefectsPerUnit = DPU =
are tsObserved
DPU =
53 with examples from
= .106
Units Pr oduced
500
this table. Please
Defect per Million Opportunities (DPMO) - the number of ways a defect can occur.
If each item could at theseto fail (label, scratch, color, wrong info, performance,…) then
look have 8 ways offline.
DPU *1,000,000 0.106 *1,000,000 106,000
DPMO = = = = 13,250
# ofWayUnitCanBeDefective 8 8
Rolled Throughput Yield (RTY) What is overall Y1 x Y2 chainx Y4
yield in x Y3 of processes?
Yield Yield Yield Yield
Y1=0.90
Process 1 = .9
Y2=0.90
Process 2 = .9
Y3=0.90
Process 3 = .9
Y4=0.90
Process 4 = .9
(.90)x(.90)x(.90)x(.90)= Guess
.656
65.6%
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29. 6-Sigma & Lean 101
Scatter Plot – Visualize Process Data & Look for Trends
Y has equivalent response to X and Y has varying response to X and
similar variation along response curve different variation along response curve
25
20
Dependent Variable Y
y
y=f(x)
15
10
x
5
0
0 5 10 15 20 25
Independent Variable X What is different
about processes?
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30. 6-Sigma & Lean 101
Control/Run Chart - Variable & Attribute - Track/React to Trends
Average & Range SPC Chart
31
UCL (3ϭ)
29
Continuous
27
Variable
25
Average
Median & Range
23
Diameter& of Hole
Average Range
Average & Std Deviation
21
Short Run Charts
You would look into why
19
these extremes happened LCL (3ϭ) Discrete
17
6 Attribute
UCL Fraction Defective
4
P.O. with Errors
Number Defective
Range
2 Number of Defects
Percent Defective
0
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29
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31. 6-Sigma & Lean 101
Objectives of Design of Experiments (DOE)
DOE is a systematic approach to determine & optimize the response
between process inputs & outputs (independent and dependent variables).
S & H and Delivery Time
PROCESS
Part Size
The objective - optimize S&H of different part sizes for best delivery time.
DOE experiments do not change only one variable - variables can interact
Consider the interaction of temperature and wind velocity in the wind chill
factor; more wind makes it feel colder and an engine requires the right
amount of both gasoline and air to get the maximum performance.
The experiment that changes variables one-at-a-time (OAAT) requires more
experiments and cannot evaluate interactions; it is inefficient at best.
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32. 6-Sigma & Lean 101
Two Factor DOE – Variable Influence INPUT RESULT
P T Yield
If you want to know the affects from two factors P1 T1 Y1
(i.e. temperature and pressure), then vary both T
P1 T2 Y2
and P then record the results of the dependent
P2 T1 Y3
variable (i.e. yield).
P2 T2 Y4
Don’t just change one factor at a time. INPUT RESULT
Introduce terms, select levels, run experiment. P T Yield
50 25 94
Change the pressure between 50 and 100 psi and
50 75 92
the temperature between 25 and 75 degrees F;
record the yield results. 100 25 96
Calculate the mean yield for each factor level 100 75 88
Y@P1 = 93 Y@P2 = 92 Y@T1 = 95 Y@T2 = 90
This experiment is with 2 levels of P & T with a yield result…
It could be Internal vs External S&H with big vs small parts and delivery time result
96
Plot the response. 94
From the main effects… pressure has lower 92
influence on the yield, while temperature has a 90
larger effect on the yield (more slope, more effect). 88
86
P1 P2 T1 T2
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33. 6-Sigma & Lean 101
Two Factor DOE – Hi vs Lo Importance INPUT RESULT
OK. Some of you are saying… Wait a second! P T Yield
When P is changing so is T!? WHAT??????? P1 T1 Y1
EXAMPLE - Calculate the effect of P change. P1 T2 Y2
P2 T1 Y3
Yield at P1 = (Result Y1) + (Result Y2) P2 T2 Y4
Yield at P2 = (Result Y3) + (Result Y4) INPUT RESULT
SUBSTITUTING VARIABLES PRODUCING THOSE YIELDS P T Yield
Yield at P1 = (P1 + T1) + (P1 + T2) 50 25 94
Yield at P2 = (P2 + T1) + (P2 + T2) 50 75 92
REARRAGNING & REASSOCIATING 100 25 96
Yield at P1 = (P1 + P1 ) + (T1 + T2)
100 75 88
Yield at P2 = (P2 + P2 ) + (T2 + T2)
SIMPLIFYING
Yield at P1 = 2P1 + (T1 + T2)
T1 & T2 contribute the
This is what is important!!!!
Yield at P2 = 2P2 + (T1 + T2)
GRAPHICAL DEPICTION
same amount to P1 or P2
2P1
or consider, the difference removes T effect 2P2
(Yield at P1) - (Yield at P2) = 2P1 - 2P2
T1+T2 T1+T2
Y@P1 Y@P2
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34. 6-Sigma & Lean 101
More Factorial Experiment Designs – 3 & 4 Variables
INPUT OUTPUT INPUT OUTPUT
A B C D Result1 Result2 A B C Result1 Result2
A1 B1 C1 D1 R1 R2 A1 B1 C1 R1 R2
A1 B1 C1 D2 R1 R2 A1 B1 C2 R1 R2
A1 B1 C2 D1 R1 R2 A1 B2 C1 R1 R2
A1 B1 C2 D2 R1 R2 A1 B2 C2 R1 R2
A1 B2 C1 D1 R1 R2 A2 B1 C1 R1 R2
A1 B2 C1 D2 R1 R2 A2 B1 C2 R1 R2
A1 B2 C2 D1 R1 R2 A2 B2 C1 R1 R2
A1 B2 C2 D2 R1 R2 A2 B2 C2 R1 R2
A2 B1 C1 D1 R1 R2
Exercise for later –
A2 B1 C1 D2 R1 R2
A2 B1 C2 D1 R1 R2 these are balanced experiments –
equal number of each variable (A1,
A2 B1 C2 D2 R1 R2
A2, B1, B2, C1, C2…), within all
A2 B2 C1 D1 R1 R2
experiments that are also unique with
A2 B2 C1 D2 R1 R2
respect to the arrangement of these
A2 B2 C2 D1 R1 R2 variables – note: check out the colors.
A2 B2 C2 D2 R1 R2
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35. 6-Sigma & Lean 101
Lean
Document the process
Find the waste
Make a plan to
eliminate the waste
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36. 6-Sigma & Lean 101
What Are Key Concepts of Lean?
Give customers
what they want,
when they want it, for
what they want to pay, and
without more inve$tment by your company
Get the big picture of the process to
Improve Quality
Eliminate Waste - ID Value Added vs. Non-Value Added Activities
Reduce Lead Time
Reduce Total Costs
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37. 6-Sigma & Lean 101
Create a Value Stream Map – Present (Need Future State)
This is the value stream
item Description 14
process for theand Production
1 ID Customer, Supplier, entire
8
1
plant. You can also Interval
2 Customer Requirements per Time
Production & Containment Requirements 1 1
make a value stream
3
4 Shipping
15 2
mapDelivery a sub-process.
5 for 5
4
EventuallyProcesses need to
6 Sequence of you 3
lookData specific toentire
7
at the each Sequence
Communication Methods
11
8
processAttributes: times, Efficiency 6
9 Process
to make sure 12
10
changesSymbol - not shift
10 Operator did number
7
waste or&problems to
11 Inventory Work in Process (WIP)
9
14
"Push" vs "Pull" Operations
another process and
12
15
13 Other Info
onlyWorking Hours Availability
14 created a “local You will probably do this with pencil & paper
optimum”.Times
15 Cycle & Lead
Example from - www.strategosinc.com
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38. 6-Sigma & Lean 101
How to Identify Waste – TIMWOOD or DOWNTIME
Look for these forms of waste in the Value Stream Map
TIMWOOD DOWNTIME
Transportation Defects
Inventory Over-production
Motion Waiting
Waiting Not Utilizing Employees*
Over-processing Transportation
Over-production Inventory
Defects Motion
Excess processing
*skills, ideas, creativity
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39. 6-Sigma & Lean 101
How does 5S Help Eliminate Waste? Makes Waste Visible.
5 S - seiri, seiton, seiso, seiketsu and shitsuke
Sort, separate needed from unneeded items & remove the latter
Set-in-Order*/Straighten, arrange items for ease of use
Shine/Scrub, means to cleanup
Standardize/Systemize, disciplined structured routines
Sustain/Self-Discipline, create a new habit
* “6 S” adds Safety (part of Set-in-Order) – make safety equipment easy to use
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40. 6-Sigma & Lean 101
Relation of What We Learned wrt Process Improvement
Other PI
6-Sigma
Contributions
There is more
Lean
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41. 6-Sigma & Lean 101
Other Process Improvement Concepts/Tools
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42. 6-Sigma & Lean 101
What is 6-Sigma? Components of Sustained Profitable Growth
Good
Management
Systems
Business
Innovation
Scorecard
Creating a culture
6-Sigma to sustain & create
Lean new improvements
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43. 6-Sigma & Lean 101
How to Sustain Progress with Lean & 6-Sigma
Keep employees motivated,
customers happy,
processes running smoothly, and
the company making money
LEAN is NOT MEAN
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44. 6-Sigma & Lean 101
What are Components of Sustained Profitable Growth
Business
Scorecard
Customer
Financials Vision & Strategy Employees
Processes
Management Provides Vision & Strategy so the Business Can: #1 Take Care of
Customers (VOC), #2 Take Care of Employees (Training, Resources, Rewards)
Employees Take Care of Processes (Process Control & Improvement)
Processes Take Care of Finances (Efficient Value Added Processes = $$s)
Finances Take Care of Stakeholders and Provide $$s for Growth and
Improvements that add value for the customer
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