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Enabling Sustained Business Excellence




Part 2 of 8 - Perspectives of Lean Six Sigma

 Lean Six Sigma Practice @ KINDUZ




                                              Overview to Lean Six Sigma | KINDUZ Business Consulting | http://www.kinduz.com/
HTTP://NETWORK.KINDUZ.COM/

                 KINDUZ Consulting Network

• Network with Experts from all over the World
• Download Templates, Checklists, Frameworks for study
• Access Video Recordings, Blogs of Experts
• Post Questions and get Answers, Participate in Discussions
• Lifetime Access


                                     Overview to Lean Six Sigma | KINDUZ Business Consulting | http://www.kinduz.com/

                                                                                                                           2
                                                                                     © 2009 KINDUZ - All rights reserved
Historical Perspective




  1979:
Motorola                   1995: Jack                                     2000: GE
Starts Six                   Welch                                        Saves ~$2
                          Initiates Six                                     Billion
 Sigma
Initiative                Sigma in GE                                      Annually




               1986:                      1998: Allied
              Motorola                      Signal
             Saves ~$16                   Saves ~$1.2
               Billion                      Billion




                                          Overview to Lean Six Sigma | KINDUZ Business Consulting | http://www.kinduz.com/

                                                                                                                                3
                                                                                          © 2009 KINDUZ - All rights reserved
Mean vs. Variation




                     Overview to Lean Six Sigma | KINDUZ Business Consulting | http://www.kinduz.com/

                                                                                                           4
                                                                     © 2009 KINDUZ - All rights reserved
Statistical Perspective




                                       Mean = 20




                                       (s)= 0.5
  (Lower Specification)                                                            (Upper Specification)




                          (6 s)                          (6 s)




                                                                                              23
          17




                                  20




A defect is any value that falls outside Customer Specifications

                                          Overview to Lean Six Sigma | KINDUZ Business Consulting | http://www.kinduz.com/

                                                                                                                                5
                                                                                          © 2009 KINDUZ - All rights reserved
Quantitative Perspective


                                                                              99.99966% Right (6 Sigma)
             99% Right (3.8 Sigma)

                                                             No electricity for 1 hour every 34 years
No electricity for 7 hours per month


5,000 incorrect operations per week                          1.7 incorrect operations per week


                                                             68 wrong prescriptions per year
20,000 wrong prescriptions per year



                                       Defects per Million
                    σ
                                         Opportunities
                    1                      697,672.15
                    2                      308,770.21
                    3                      66,810.63
                    4                       6,209.70
                    5                        232.67
                    6                         3.40


                                                              Overview to Lean Six Sigma | KINDUZ Business Consulting | http://www.kinduz.com/

                                                                                                                                                    6
                                                                                                              © 2009 KINDUZ - All rights reserved
Quantitative Perspective


                                                                       Airline fatality rate 0.52 PPM
    Sigma (s)
                    World Class, Six Sigma 3.4 PPM

                                                                 1:1,000,000

           Five Sigma 233 PPM

                                         Motorola 1990
    Four Sigma 6,209 PPM



                              Hospital fatality rate due to mistakes
                              Restaurant bills
                    1:100     Doctor prescriptions
                              Payroll processing
                              Airline baggage handling


                    Three Sigma 66,810 PPM



                Two Sigma
                308,770 PPM




                                                               Overview to Lean Six Sigma | KINDUZ Business Consulting | http://www.kinduz.com/

                                                                                                                                                     7
                                                                                                               © 2009 KINDUZ - All rights reserved
Customers Perspective


Six Sigma Starts and Ends with Customers

                                 What is my
                                 customers
                                 view of the
                                  process?
                    Are my                             What do the
                  customers                             customers
                 referring and                         expect out of
                                                       the process?
                 buying again?


                                 CUSTOMERS


                    Is my                               How do my
                  customer                               customers
                 satisfaction                           measure the
                                                          process?
                 increasing?
                                 What is my
                                  customers
                                 definition of
                                   a defect?



                                               Overview to Lean Six Sigma | KINDUZ Business Consulting | http://www.kinduz.com/

                                                                                                                                     8
                                                                                               © 2009 KINDUZ - All rights reserved
Operational Perspective




                          Control
                                         Define




                   Improve


                                          Measure


                              Analyze




                                        Overview to Lean Six Sigma | KINDUZ Business Consulting | http://www.kinduz.com/

                                                                                                                              9
                                                                                        © 2009 KINDUZ - All rights reserved
Contact




          Website: http://www.kinduz.com/

           Email: services@kinduz.com

          India Office: +91-40-40165594

           Workshop Knowledgebase:
           http://kinduz.ning.com/




                                  Overview to Lean Six Sigma | KINDUZ Business Consulting | http://www.kinduz.com/

                                                                                  © 2009 KINDUZ - All rights reserved 10
http://www.kinduz.com
Overview to Lean Six Sigma | KINDUZ Business Consulting | http://www.kinduz.com/

                                                © 2009 KINDUZ - All rights reserved 11

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02 of 08 Lean Six Sigma Overview - Perspectives Of Lean Six Sigma

  • 1. Enabling Sustained Business Excellence Part 2 of 8 - Perspectives of Lean Six Sigma Lean Six Sigma Practice @ KINDUZ Overview to Lean Six Sigma | KINDUZ Business Consulting | http://www.kinduz.com/
  • 2. HTTP://NETWORK.KINDUZ.COM/ KINDUZ Consulting Network • Network with Experts from all over the World • Download Templates, Checklists, Frameworks for study • Access Video Recordings, Blogs of Experts • Post Questions and get Answers, Participate in Discussions • Lifetime Access Overview to Lean Six Sigma | KINDUZ Business Consulting | http://www.kinduz.com/ 2 © 2009 KINDUZ - All rights reserved
  • 3. Historical Perspective 1979: Motorola 1995: Jack 2000: GE Starts Six Welch Saves ~$2 Initiates Six Billion Sigma Initiative Sigma in GE Annually 1986: 1998: Allied Motorola Signal Saves ~$16 Saves ~$1.2 Billion Billion Overview to Lean Six Sigma | KINDUZ Business Consulting | http://www.kinduz.com/ 3 © 2009 KINDUZ - All rights reserved
  • 4. Mean vs. Variation Overview to Lean Six Sigma | KINDUZ Business Consulting | http://www.kinduz.com/ 4 © 2009 KINDUZ - All rights reserved
  • 5. Statistical Perspective Mean = 20 (s)= 0.5 (Lower Specification) (Upper Specification) (6 s) (6 s) 23 17 20 A defect is any value that falls outside Customer Specifications Overview to Lean Six Sigma | KINDUZ Business Consulting | http://www.kinduz.com/ 5 © 2009 KINDUZ - All rights reserved
  • 6. Quantitative Perspective 99.99966% Right (6 Sigma) 99% Right (3.8 Sigma) No electricity for 1 hour every 34 years No electricity for 7 hours per month 5,000 incorrect operations per week 1.7 incorrect operations per week 68 wrong prescriptions per year 20,000 wrong prescriptions per year Defects per Million σ Opportunities 1 697,672.15 2 308,770.21 3 66,810.63 4 6,209.70 5 232.67 6 3.40 Overview to Lean Six Sigma | KINDUZ Business Consulting | http://www.kinduz.com/ 6 © 2009 KINDUZ - All rights reserved
  • 7. Quantitative Perspective Airline fatality rate 0.52 PPM Sigma (s) World Class, Six Sigma 3.4 PPM 1:1,000,000 Five Sigma 233 PPM Motorola 1990 Four Sigma 6,209 PPM Hospital fatality rate due to mistakes Restaurant bills 1:100 Doctor prescriptions Payroll processing Airline baggage handling Three Sigma 66,810 PPM Two Sigma 308,770 PPM Overview to Lean Six Sigma | KINDUZ Business Consulting | http://www.kinduz.com/ 7 © 2009 KINDUZ - All rights reserved
  • 8. Customers Perspective Six Sigma Starts and Ends with Customers What is my customers view of the process? Are my What do the customers customers referring and expect out of the process? buying again? CUSTOMERS Is my How do my customer customers satisfaction measure the process? increasing? What is my customers definition of a defect? Overview to Lean Six Sigma | KINDUZ Business Consulting | http://www.kinduz.com/ 8 © 2009 KINDUZ - All rights reserved
  • 9. Operational Perspective Control Define Improve Measure Analyze Overview to Lean Six Sigma | KINDUZ Business Consulting | http://www.kinduz.com/ 9 © 2009 KINDUZ - All rights reserved
  • 10. Contact Website: http://www.kinduz.com/ Email: services@kinduz.com India Office: +91-40-40165594 Workshop Knowledgebase: http://kinduz.ning.com/ Overview to Lean Six Sigma | KINDUZ Business Consulting | http://www.kinduz.com/ © 2009 KINDUZ - All rights reserved 10
  • 11. http://www.kinduz.com Overview to Lean Six Sigma | KINDUZ Business Consulting | http://www.kinduz.com/ © 2009 KINDUZ - All rights reserved 11