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Lean Six Sigma Overview




Copyright © 2005-2008 EMS Consulting Group Inc. All Rights Reserved
Agenda

• What is Six Sigma?
• What is Lean?




     Copyright © 2005-2008 EMS Consulting Group Inc. All Rights Reserved
What is Six Sigma?

•   Six Sigma
    concentrates on
    reduction of
    defects/variation in
    processes.
•   A measure of quality
    3.4 defects per million
    opportunities (DPMO)
•   DMAIC (Define                              -6   -5   -4   -3   -2   -1   +1   +2   +3   +4   +5   +6


    Measure Analyze
    Improve Control)



          Copyright © 2005-2008 EMS Consulting Group Inc. All Rights Reserved
What is Six Sigma? X’s and Y’s



                   Y = f(x)




  Copyright © 2005-2008 EMS Consulting Group Inc. All Rights Reserved
History of Six Sigma
1980         1985            1990            1995           2000         2005   Present



                                        1994:
   1984: Bob
                                      Application
      Galvin
                                     Experts leave
   of Motorola
                                       Motorola
     defines
    Six Sigma                          1995: Allied
   objectives                         Signal and GE
                                         embrace
       1985: T.I. and                   Six Sigma
        ABB work
                                    1997- Present: Six Sigma
       with Motorola
                                           spans industries
         to further
                                               worldwide
        Develop Six
           Sigma © 2005-2008 EMS Consulting Group Inc. All Rights Reserved
            Copyright
Six Ingredients of Six Sigma
1. Genuine Focus on the
   Customer
2. Data and fact-driven
   management
3. Process focus, management,
   and improvement
4. Proactive Management
5. Boundary-less Collaboration
6. Drive for perfection


        Copyright © 2005-2008 EMS Consulting Group Inc. All Rights Reserved
Six Sigma: DMAIC
•   Define the problem and what the customers
    require
•   Measure the defects and process operation
•   Analyze the data and discover causes of
    the problem.
•   Improve the process to remove causes of
    the defects.
•   Control the process to make sure defects
    don’t recur.

        Copyright © 2005-2008 EMS Consulting Group Inc. All Rights Reserved
Lean: The Rise of Toyota

• Taiichi Ohno’s situation after WWII:
   –   no money
   –   a small diverse market
   –   productivity - one-tenth that of Detroit
   –   production - less than one-hundredth that of Ford
• Ohno’s marching orders in the 1950’s:
  – “Catch up with Detroit in three years”
• Ohno’s solution
   – after studying Ford for years, created a manufacturing
     system to reduce cost through eliminating waste


           Copyright © 2005-2008 EMS Consulting Group Inc. All Rights Reserved
Goal:
  Highest Quality, Lowest Cost, Shortest Lead Time
                  Best Safety, High Morale

     Just In Time                              Jidoka
      Right part-                          Quality at the
                                             Source
     Right amount-
      Right Time                            •Line Stop
                                            •Visual
    •Flow                                   Controls
    •Takt Time                              •Error Proofing
    •Pull                                   •Andon
    •Quick                                  •5 Whys
    Changeover


                    Operational Stability
                       Standardized Work
                            PM/ TPM
                               5S
                       Leveled Production



Toyota Production System
Copyright © 2005-2008 EMS Consulting Group Inc. All Rights Reserved
Thinking Lean
                  5 Principles of Lean
              (Womack and Jones, Lean Thinking)
• Specify value
   – can only be defined by the ultimate customer
• Identify/Map the value stream
   – exposes waste and sources of waste
• Create one piece flow
   – reduce WIP and delays
• Let the customer pull product through the value stream
   – make only what the customer has ordered
• Seek perfection
   – Continuously improve quality and eliminate waste


           Copyright © 2005-2008 EMS Consulting Group Inc. All Rights Reserved
What does Lean do?


                                 Total Lead Time
     Lean
Transformation
                                                                    “All we are doing is
                                                                       looking at the time
                                                                     line from the moment
                                                                    the customer gives us
                                                                      an order to the point
            Total Lead Time                                           when we collect the
                                                                        cash. And we are
                                                                    reducing that time line
Value-Creating Time                                                     by removing non-
Non-Value-Creating                                                   value-added wastes.”
  Time (waste)                                                           – Taiichi Ohno

         Copyright © 2005-2008 EMS Consulting Group Inc. All Rights Reserved

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Lean Manufacturing and Lean Six Sigma

  • 1. Lean Six Sigma Overview Copyright © 2005-2008 EMS Consulting Group Inc. All Rights Reserved
  • 2. Agenda • What is Six Sigma? • What is Lean? Copyright © 2005-2008 EMS Consulting Group Inc. All Rights Reserved
  • 3. What is Six Sigma? • Six Sigma concentrates on reduction of defects/variation in processes. • A measure of quality 3.4 defects per million opportunities (DPMO) • DMAIC (Define -6 -5 -4 -3 -2 -1 +1 +2 +3 +4 +5 +6 Measure Analyze Improve Control) Copyright © 2005-2008 EMS Consulting Group Inc. All Rights Reserved
  • 4. What is Six Sigma? X’s and Y’s Y = f(x) Copyright © 2005-2008 EMS Consulting Group Inc. All Rights Reserved
  • 5. History of Six Sigma 1980 1985 1990 1995 2000 2005 Present 1994: 1984: Bob Application Galvin Experts leave of Motorola Motorola defines Six Sigma 1995: Allied objectives Signal and GE embrace 1985: T.I. and Six Sigma ABB work 1997- Present: Six Sigma with Motorola spans industries to further worldwide Develop Six Sigma © 2005-2008 EMS Consulting Group Inc. All Rights Reserved Copyright
  • 6. Six Ingredients of Six Sigma 1. Genuine Focus on the Customer 2. Data and fact-driven management 3. Process focus, management, and improvement 4. Proactive Management 5. Boundary-less Collaboration 6. Drive for perfection Copyright © 2005-2008 EMS Consulting Group Inc. All Rights Reserved
  • 7. Six Sigma: DMAIC • Define the problem and what the customers require • Measure the defects and process operation • Analyze the data and discover causes of the problem. • Improve the process to remove causes of the defects. • Control the process to make sure defects don’t recur. Copyright © 2005-2008 EMS Consulting Group Inc. All Rights Reserved
  • 8. Lean: The Rise of Toyota • Taiichi Ohno’s situation after WWII: – no money – a small diverse market – productivity - one-tenth that of Detroit – production - less than one-hundredth that of Ford • Ohno’s marching orders in the 1950’s: – “Catch up with Detroit in three years” • Ohno’s solution – after studying Ford for years, created a manufacturing system to reduce cost through eliminating waste Copyright © 2005-2008 EMS Consulting Group Inc. All Rights Reserved
  • 9. Goal: Highest Quality, Lowest Cost, Shortest Lead Time Best Safety, High Morale Just In Time Jidoka Right part- Quality at the Source Right amount- Right Time •Line Stop •Visual •Flow Controls •Takt Time •Error Proofing •Pull •Andon •Quick •5 Whys Changeover Operational Stability Standardized Work PM/ TPM 5S Leveled Production Toyota Production System Copyright © 2005-2008 EMS Consulting Group Inc. All Rights Reserved
  • 10. Thinking Lean 5 Principles of Lean (Womack and Jones, Lean Thinking) • Specify value – can only be defined by the ultimate customer • Identify/Map the value stream – exposes waste and sources of waste • Create one piece flow – reduce WIP and delays • Let the customer pull product through the value stream – make only what the customer has ordered • Seek perfection – Continuously improve quality and eliminate waste Copyright © 2005-2008 EMS Consulting Group Inc. All Rights Reserved
  • 11. What does Lean do? Total Lead Time Lean Transformation “All we are doing is looking at the time line from the moment the customer gives us an order to the point Total Lead Time when we collect the cash. And we are reducing that time line Value-Creating Time by removing non- Non-Value-Creating value-added wastes.” Time (waste) – Taiichi Ohno Copyright © 2005-2008 EMS Consulting Group Inc. All Rights Reserved