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Lean Six Sigma
Concept and Application
Presenter: Husnain Shahid | Planning & Scheduling Engineer | husnain.shahid@live.com
Lean Six Sigma | Concept and Application
There is nothing so useless as doing
efficiently that which should not be done
at all.
- Peter Drucker
Background Concept Tools & Techniques
Why and where from the Lean Six Sigma came!
• A compound of two individual manufacturing systems, Lean & Six Sigma.
• In the competitive industrial era of the 20th century, progressive
companies experimented and developed their own smart systems to stay
ahead in terms of revenue thru quality improvement, waste reduction,
savings and expansion.
• Lean comes form Japan, while Six Sigma has its roots in the USA.
Background Concept Tools & Techniques
What Lean Six Sigma is!
Background Concept Tools & Techniques
• Lean, a systematic approach to identifying and eliminating waste in
processes, is almost a synonym to Toyota Production System (TPS) as it
matured there.
• However, it is debated that Mr. Henry Ford of Ford Motors firstly introduced
the “Flow” concept – a part of Lean – at his plants in 1913.
• Six Sigma, a set of techniques and tools that improves process capability,
was introduced by an American engineer, Bill Smith, at Motorola in 1986.
• It originated from a statistical quality control for manufacturing plants
initially, however, it is used as an approach in almost every sector from
marketing to banking now.
The idea behind use of Lean Six Sigma in processes
Both systems complement each other by:
• Identifying and streamlining the process elements that are worth
working on and getting rid of those elements that are causing waste
(Lean Approach)
• Optimizing the process elements identified after Lean, by reducing
variation and cycle-time thru statistical and data-driven approach (Six
Sigma Approach)
Background Concept Tools & Techniques
The Synergy of Lean Six Sigma:
Lean Projects and the Concept of Waste
Identification of 3 types of wastes:
1. Activities that consume resources without providing additional value
2. Overuse of resources (equipment or manhours)
3. Operational “unevenness” or “variation” which decreases efficiency
Goals:
• Improved productivity and efficiency
• Reduced lead/process times
• Lower inventory and storage costs
• Decreased overall costs
• Greater quality and customer satisfaction
• The term, Six Sigma - 6σ , has its origin in statistics as ‘σ’ represents the
Standard Deviation.
• Six Sigma, in literal terms, aims to reduce ‘variation’ down to negligible, as
6σ has acceptable range of 99.9999998% or 3.4 defects per million
opportunities (DPMO)
Six Sigma and Statistics
DPMO =
(Defects/Opportunitie
s) * 1,000,000
Who runs a Lean Six Sigma Project
Lean Six Sigma Terminologies
• Unit: Item produced or created
• Defect: Anything that causes a failure
• Opportunity: Possibility of a quality issue
• DPO: Defects/(Units * Opportunity)
• DPMO: (Defects / Units * Opportunities) * Total 1,000,000
• Yield: 1-DPO (It is the ability of the process to produce defect-free units)
• Variance: Deviation from the desired product / process result
• X: Independent Variables
• Y: Dependent Variables
• CTQ: Critical To Quality
How to Take On a Lean Six Sigma Project
There are two basic methodologies to carry out an LSS project:
1. DMADC – suitable for designing a product or process
2. DMAIC – suitable for already existing product or process
As we are dealing more with already existing processes, DMAIC is our thing!
Background Tools & Techniques
Concept
DMAIC – Methodology for Lean Six Sigma Projects
DMAIC - Define Phase
Purpose:
• Identify and describe the problems that need to be solved
• Organize the project team [Certified Black Belt & Green Belts personnel]
• Evaluate the weightage of the problem for the organization
Steps:
1. Project selection and scope
2. Establish charter of the project
3. Definition of the Defect [or CTQ]
Tools & Techniques:
1. Charter
2. SIPOC
3. Affinity Diagram
4. Swimlane Map
5. Tree Diagram
DMAIC - Define Phase | Charter
DMAIC - Define Phase | SIPOC
Spares
Staff Empl. Serv.
Contr Manpower Serv.
OEM
Contractors
HR/L&DC/Training
Spare Suppliers
Services Arrangements
Job Preparation
Audits for Permit
Job Execution
Housekeeping
Permit Closure
Plant Maintenance
Production / Mgmt
VOC:
Reliable Plant
Operation
No/Less Safety
Observations
Quality Product
DMAIC - Define Phase | Affinity Diagram
Voice of Customer [VOC]:
1. No leakage / splash
2. Job completion before planned startup
3. Nothing missed in inspection
4. Everything arranged in area
5. Prearrangements before job start
6. Plant operation till next TA
CTQs:
• Safety
• Timely production
• Reliability
• Safety
• Timely production
• Reliability
Safety
Reliability
Timely Prod.
1
4
2
3
6
4
DMAIC - Measure Phase
Purpose:
• To define the quantifiable defect
• To collect baseline information regarding process
• To ensure system for measurements of X’s & Y’s in place
Steps:
1. Determine Project’s Y (i.e. measurable end result)
2. Baseline performance
3. Goal determination based on baseline performance
Tools & Techniques:
1. Tree Diagram
2. Performance Standard
DMAIC - Measure Phase | Tree Diagram
Project ‘Y’
Project
‘X’
Y = F(X)
Definition:
Requirement(s) or specification(s) imposed by the customer on the Project ‘Y’
Parameters:
• What does the customer want?
• CTQ
• What is a good product/process?
• Specification Limits
• What is a defect?
• Outside Specification Limit
DMAIC - Measure Phase | Performance Standard
LSL USL
DMAIC - Measure Phase | Worksheet
DMAIC – Analyze Phase
Purpose:
• To determine which process parameters (X), have the most effect (i.e.
reduces the variation) on the critical process results (Y)
Steps:
1. Identifying maximum probable causes of variation
2. Analyzing the probable causes of variation
3. Determining the ‘main cause’ and other contributing factors of ‘variation’
Tools & Techniques:
1. Pareto Chart
2. 5 Whys
3. Ishikawa Diagram
4. Run Chart
DMAIC – Analyze Phase | Pareto Chart
DMAIC – Analyze Phase | 5 Whys
DMAIC – Analyze Phase | Ishikawa Diagram
DMAIC – Analyze Phase | Run Chart
DMAIC – Improve Phase
Purpose:
• To identify opportunities for improvement, substantiated with information on
the way these improvements help achieve the project goals
Steps:
1. Finding or creating the most optimal solutions
2. Testing the solution (pilot projects, etc.)
3. Implementing and reviewing the solution on main project scale
Tools & Techniques:
1. Value Stream Mapping
2. Impact Effort Matrix
3. Benchmarking
DMAIC – Improve Phase | Value Stream Mapping
DMAIC – Improve Phase | Impact Effort Matrix
DMAIC – Improve Phase | Benchmarking
DMAIC – Control Phase
Purpose:
• To implement the finalized solutions after ensuring that the solution is
compatible with the process and organization
• To monitor and respond to the undesired dip in improvement
Steps:
1. Development and ensuring the accuracy of process control checks
2. Implementing, proving and controlling the improvement
3. Documentation and project handover
Tools & Techniques:
1. Control Chart
2. Mistake Proofing
3. Monitoring & Response
DMAIC – Control Phase’s Requirement
DMAIC – Control Phase | Control Chart
DMAIC – Control Phase | Mistake Proofing
Doing things right in the first attempt!
Thank you
and best of luck!

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Lean Six Sigma - Concept & Application

  • 1. Lean Six Sigma Concept and Application Presenter: Husnain Shahid | Planning & Scheduling Engineer | husnain.shahid@live.com
  • 2. Lean Six Sigma | Concept and Application There is nothing so useless as doing efficiently that which should not be done at all. - Peter Drucker Background Concept Tools & Techniques
  • 3. Why and where from the Lean Six Sigma came! • A compound of two individual manufacturing systems, Lean & Six Sigma. • In the competitive industrial era of the 20th century, progressive companies experimented and developed their own smart systems to stay ahead in terms of revenue thru quality improvement, waste reduction, savings and expansion. • Lean comes form Japan, while Six Sigma has its roots in the USA. Background Concept Tools & Techniques
  • 4. What Lean Six Sigma is! Background Concept Tools & Techniques • Lean, a systematic approach to identifying and eliminating waste in processes, is almost a synonym to Toyota Production System (TPS) as it matured there. • However, it is debated that Mr. Henry Ford of Ford Motors firstly introduced the “Flow” concept – a part of Lean – at his plants in 1913. • Six Sigma, a set of techniques and tools that improves process capability, was introduced by an American engineer, Bill Smith, at Motorola in 1986. • It originated from a statistical quality control for manufacturing plants initially, however, it is used as an approach in almost every sector from marketing to banking now.
  • 5. The idea behind use of Lean Six Sigma in processes Both systems complement each other by: • Identifying and streamlining the process elements that are worth working on and getting rid of those elements that are causing waste (Lean Approach) • Optimizing the process elements identified after Lean, by reducing variation and cycle-time thru statistical and data-driven approach (Six Sigma Approach) Background Concept Tools & Techniques
  • 6. The Synergy of Lean Six Sigma:
  • 7. Lean Projects and the Concept of Waste Identification of 3 types of wastes: 1. Activities that consume resources without providing additional value 2. Overuse of resources (equipment or manhours) 3. Operational “unevenness” or “variation” which decreases efficiency Goals: • Improved productivity and efficiency • Reduced lead/process times • Lower inventory and storage costs • Decreased overall costs • Greater quality and customer satisfaction
  • 8. • The term, Six Sigma - 6σ , has its origin in statistics as ‘σ’ represents the Standard Deviation. • Six Sigma, in literal terms, aims to reduce ‘variation’ down to negligible, as 6σ has acceptable range of 99.9999998% or 3.4 defects per million opportunities (DPMO) Six Sigma and Statistics DPMO = (Defects/Opportunitie s) * 1,000,000
  • 9. Who runs a Lean Six Sigma Project
  • 10. Lean Six Sigma Terminologies • Unit: Item produced or created • Defect: Anything that causes a failure • Opportunity: Possibility of a quality issue • DPO: Defects/(Units * Opportunity) • DPMO: (Defects / Units * Opportunities) * Total 1,000,000 • Yield: 1-DPO (It is the ability of the process to produce defect-free units) • Variance: Deviation from the desired product / process result • X: Independent Variables • Y: Dependent Variables • CTQ: Critical To Quality
  • 11. How to Take On a Lean Six Sigma Project There are two basic methodologies to carry out an LSS project: 1. DMADC – suitable for designing a product or process 2. DMAIC – suitable for already existing product or process As we are dealing more with already existing processes, DMAIC is our thing! Background Tools & Techniques Concept
  • 12. DMAIC – Methodology for Lean Six Sigma Projects
  • 13. DMAIC - Define Phase Purpose: • Identify and describe the problems that need to be solved • Organize the project team [Certified Black Belt & Green Belts personnel] • Evaluate the weightage of the problem for the organization Steps: 1. Project selection and scope 2. Establish charter of the project 3. Definition of the Defect [or CTQ] Tools & Techniques: 1. Charter 2. SIPOC 3. Affinity Diagram 4. Swimlane Map 5. Tree Diagram
  • 14. DMAIC - Define Phase | Charter
  • 15. DMAIC - Define Phase | SIPOC Spares Staff Empl. Serv. Contr Manpower Serv. OEM Contractors HR/L&DC/Training Spare Suppliers Services Arrangements Job Preparation Audits for Permit Job Execution Housekeeping Permit Closure Plant Maintenance Production / Mgmt VOC: Reliable Plant Operation No/Less Safety Observations Quality Product
  • 16. DMAIC - Define Phase | Affinity Diagram Voice of Customer [VOC]: 1. No leakage / splash 2. Job completion before planned startup 3. Nothing missed in inspection 4. Everything arranged in area 5. Prearrangements before job start 6. Plant operation till next TA CTQs: • Safety • Timely production • Reliability • Safety • Timely production • Reliability Safety Reliability Timely Prod. 1 4 2 3 6 4
  • 17. DMAIC - Measure Phase Purpose: • To define the quantifiable defect • To collect baseline information regarding process • To ensure system for measurements of X’s & Y’s in place Steps: 1. Determine Project’s Y (i.e. measurable end result) 2. Baseline performance 3. Goal determination based on baseline performance Tools & Techniques: 1. Tree Diagram 2. Performance Standard
  • 18. DMAIC - Measure Phase | Tree Diagram Project ‘Y’ Project ‘X’ Y = F(X)
  • 19. Definition: Requirement(s) or specification(s) imposed by the customer on the Project ‘Y’ Parameters: • What does the customer want? • CTQ • What is a good product/process? • Specification Limits • What is a defect? • Outside Specification Limit DMAIC - Measure Phase | Performance Standard LSL USL
  • 20. DMAIC - Measure Phase | Worksheet
  • 21. DMAIC – Analyze Phase Purpose: • To determine which process parameters (X), have the most effect (i.e. reduces the variation) on the critical process results (Y) Steps: 1. Identifying maximum probable causes of variation 2. Analyzing the probable causes of variation 3. Determining the ‘main cause’ and other contributing factors of ‘variation’ Tools & Techniques: 1. Pareto Chart 2. 5 Whys 3. Ishikawa Diagram 4. Run Chart
  • 22. DMAIC – Analyze Phase | Pareto Chart
  • 23. DMAIC – Analyze Phase | 5 Whys
  • 24. DMAIC – Analyze Phase | Ishikawa Diagram
  • 25. DMAIC – Analyze Phase | Run Chart
  • 26. DMAIC – Improve Phase Purpose: • To identify opportunities for improvement, substantiated with information on the way these improvements help achieve the project goals Steps: 1. Finding or creating the most optimal solutions 2. Testing the solution (pilot projects, etc.) 3. Implementing and reviewing the solution on main project scale Tools & Techniques: 1. Value Stream Mapping 2. Impact Effort Matrix 3. Benchmarking
  • 27. DMAIC – Improve Phase | Value Stream Mapping
  • 28. DMAIC – Improve Phase | Impact Effort Matrix
  • 29. DMAIC – Improve Phase | Benchmarking
  • 30. DMAIC – Control Phase Purpose: • To implement the finalized solutions after ensuring that the solution is compatible with the process and organization • To monitor and respond to the undesired dip in improvement Steps: 1. Development and ensuring the accuracy of process control checks 2. Implementing, proving and controlling the improvement 3. Documentation and project handover Tools & Techniques: 1. Control Chart 2. Mistake Proofing 3. Monitoring & Response
  • 31. DMAIC – Control Phase’s Requirement
  • 32. DMAIC – Control Phase | Control Chart
  • 33. DMAIC – Control Phase | Mistake Proofing Doing things right in the first attempt!
  • 34. Thank you and best of luck!