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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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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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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


ISandR@usa.com                   Copyright - ISandR Services and Accelper               3
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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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-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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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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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

ISandR@usa.com                       Copyright - ISandR Services and Accelper                      8
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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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



ISandR@usa.com                                          Copyright - ISandR Services and Accelper            10
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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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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6-Sigma & Lean 101

      How to look for and improve the PROBLEMS




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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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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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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




ISandR@usa.com                                            Copyright - ISandR Services and Accelper                                                                 16
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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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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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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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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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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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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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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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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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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6-Sigma & Lean 101
Evaluating Data

      Quantify what you want to improve and make decisions based on the data.




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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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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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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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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




           ISandR@usa.com                         Copyright - ISandR Services and Accelper                                             30
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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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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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


ISandR@usa.com                       Copyright - ISandR Services and Accelper                                33
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


ISandR@usa.com                          Copyright - ISandR Services and Accelper                             34
6-Sigma & Lean 101
Lean
    Document the process
                             Find the waste
                                                                        Make a plan to
                                                                      eliminate the waste




ISandR@usa.com             Copyright - ISandR Services and Accelper                         35
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

ISandR@usa.com                Copyright - ISandR Services and Accelper       36
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




ISandR@usa.com                            Copyright - ISandR Services and Accelper                                           37
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


ISandR@usa.com               Copyright - ISandR Services and Accelper            38
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


ISandR@usa.com                 Copyright - ISandR Services and Accelper               39
6-Sigma & Lean 101
Relation of What We Learned wrt Process Improvement



                                        Other PI
                 6-Sigma
                                          Contributions




                                                                There is more
                           Lean




ISandR@usa.com               Copyright - ISandR Services and Accelper           40
6-Sigma & Lean 101
Other Process Improvement Concepts/Tools




ISandR@usa.com      Copyright - ISandR Services and Accelper   41
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



ISandR@usa.com              Copyright - ISandR Services and Accelper                      42
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
ISandR@usa.com           Copyright - ISandR Services and Accelper                  43
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


ISandR@usa.com                 Copyright - ISandR Services and Accelper           44

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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 ISandR@usa.com Copyright - ISandR Services and Accelper 1
  • 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 ISandR@usa.com Copyright - ISandR Services and Accelper 2
  • 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 ISandR@usa.com Copyright - ISandR Services and Accelper 3
  • 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 ISandR@usa.com Copyright - ISandR Services and Accelper 4
  • 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) ISandR@usa.com Copyright - ISandR Services and Accelper 5
  • 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 ISandR@usa.com Copyright - ISandR Services and Accelper 6
  • 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!” ISandR@usa.com Copyright - ISandR Services and Accelper 7
  • 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 ISandR@usa.com Copyright - ISandR Services and Accelper 8
  • 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 ISandR@usa.com Copyright - ISandR Services and Accelper 9
  • 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 ISandR@usa.com Copyright - ISandR Services and Accelper 10
  • 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) ISandR@usa.com Copyright - ISandR Services and Accelper 11
  • 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 ISandR@usa.com Copyright - ISandR Services and Accelper 12
  • 13. 6-Sigma & Lean 101 How to look for and improve the PROBLEMS ISandR@usa.com Copyright - ISandR Services and Accelper 13
  • 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 ISandR@usa.com Copyright - ISandR Services and Accelper 14
  • 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 ISandR@usa.com Copyright - ISandR Services and Accelper 15
  • 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 ISandR@usa.com Copyright - ISandR Services and Accelper 16
  • 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 ISandR@usa.com Copyright - ISandR Services and Accelper 17
  • 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 ISandR@usa.com Copyright - ISandR Services and Accelper 18
  • 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 ISandR@usa.com Copyright - ISandR Services and Accelper 19
  • 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 ISandR@usa.com Copyright - ISandR Services and Accelper 20
  • 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 ISandR@usa.com Copyright - ISandR Services and Accelper 21
  • 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 ISandR@usa.com Copyright - ISandR Services and Accelper 22
  • 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 ISandR@usa.com Copyright - ISandR Services and Accelper 23
  • 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 ISandR@usa.com Copyright - ISandR Services and Accelper 24
  • 25. 6-Sigma & Lean 101 Average, Standard Deviation, Max Value, Min Value in Data Sets Average Standard Maximum Minimum Deviation Active Cell ISandR@usa.com Copyright - ISandR Services and Accelper 25
  • 26. 6-Sigma & Lean 101 Evaluating Data Quantify what you want to improve and make decisions based on the data. ISandR@usa.com Copyright - ISandR Services and Accelper 26
  • 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 ISandR@usa.com Copyright - ISandR Services and Accelper 27
  • 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% ISandR@usa.com Copyright - ISandR Services and Accelper 28
  • 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? ISandR@usa.com Copyright - ISandR Services and Accelper 29
  • 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 ISandR@usa.com Copyright - ISandR Services and Accelper 30
  • 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. ISandR@usa.com Copyright - ISandR Services and Accelper 31
  • 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 ISandR@usa.com Copyright - ISandR Services and Accelper 32
  • 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 ISandR@usa.com Copyright - ISandR Services and Accelper 33
  • 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 ISandR@usa.com Copyright - ISandR Services and Accelper 34
  • 35. 6-Sigma & Lean 101 Lean Document the process Find the waste Make a plan to eliminate the waste ISandR@usa.com Copyright - ISandR Services and Accelper 35
  • 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 ISandR@usa.com Copyright - ISandR Services and Accelper 36
  • 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 ISandR@usa.com Copyright - ISandR Services and Accelper 37
  • 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 ISandR@usa.com Copyright - ISandR Services and Accelper 38
  • 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 ISandR@usa.com Copyright - ISandR Services and Accelper 39
  • 40. 6-Sigma & Lean 101 Relation of What We Learned wrt Process Improvement Other PI 6-Sigma Contributions There is more Lean ISandR@usa.com Copyright - ISandR Services and Accelper 40
  • 41. 6-Sigma & Lean 101 Other Process Improvement Concepts/Tools ISandR@usa.com Copyright - ISandR Services and Accelper 41
  • 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 ISandR@usa.com Copyright - ISandR Services and Accelper 42
  • 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 ISandR@usa.com Copyright - ISandR Services and Accelper 43
  • 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 ISandR@usa.com Copyright - ISandR Services and Accelper 44