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Lean Six Sigma
- 1. Lean Six Sigma Basic
To ensure customer success and enhance productivity
To drive performance and shareholder value
© Rajan Kanwar (647 406 6885)
- 2. © Rajan Kanwar (647 406 6885)
Slide #: 2
What is Lean in the context of improvement?
• A quality improvement
methodology for making
substantial, lasting changes in
performance
• Focuses on maximizing value
defined by the customer while
minimizing waste
Lean
Definition
Five
Principles
Value
Value
Stream
Flow Pull Perfection Six Sigma
Types of
Variability
- 3. © Rajan Kanwar (647 406 6885)
Slide #: 3
The Five Principles of Lean Thinking are:
Value
Value
Stream
Flow
Pull
Perfection
Defined by the
customer
Sequence of steps
taken to create value
Developed so that the products
or services move effectively
through the value stream
Make / process only
what and when the
customer needs
Constantly seek out ways
to perfect the system
Lean
Definition
Five
Principles
Value
Value
Stream
Flow Pull Perfection Six Sigma
Types of
Variability
- 4. © Rajan Kanwar (647 406 6885)
Slide #: 4
Principle 1
Value
Value
Stream
Flow
Pull
Perfection
Lean
Definition
Five
Principles
Value
Value
Stream
Flow Pull Perfection Six Sigma
Types of
Variability
- 5. © Rajan Kanwar (647 406 6885)
Slide #: 5
Activities in a process are…
Value
Add (VA)
Necessary
Non-Value
Add (NNVA)
Waste
(WS)
Lean
Definition
Five
Principles
Value
Value
Stream
Flow Pull Perfection Six Sigma
Types of
Variability
- 6. © Rajan Kanwar (647 406 6885)
Slide #: 6
Value add are…
Add value defined by the
customer
Transform the product / service
Be performed correctly the first
time
• Activities that change the material or information being worked on
and increases it’s value
• To be classified as value add, process must:
Lean
Definition
Five
Principles
Value
Value
Stream
Flow Pull Perfection Six Sigma
Types of
Variability
- 7. © Rajan Kanwar (647 406 6885)
Slide #: 7
Necessary Non-Value Add are…
• Activities that are essential to
create value – such as legal or
regulatory - but do not add value
to the customer
Lean
Definition
Five
Principles
Value
Value
Stream
Flow Pull Perfection Six Sigma
Types of
Variability
- 8. © Rajan Kanwar (647 406 6885)
Slide #: 8
Waste activities are…
• Meaningless, and non-essential
• Eight types are: (TIM WOODS)
•Physically moving
papers, reports,
equipment, and/or
material from one area
to another
Transport
•Files awaiting signature /
approval; excessive
office materials; files
awaiting completion by
others; servers storing
data; unprocessed
emails
Inventory
•Searching for digital
and/or paper files, pens,
staplers; carrying paper
work to another process
/ department
Motion
•In a queue; for approval;
to receive a document;
for IT systems to refresh
Waiting
•Producing things too
early; making
unnecessary / too many
copies; emailing / faxing
documents which people
already have
Over-
Production
•Duplicating reports /
info; constantly
reviewing documents
Over-
Processing
•Incorrect data entry /
results; lost files /
records
Defects
•Not recognizing peoples’
talents and abilities,
capabilities or
contribution towards
being able to make
improvements
Skills
Lean
Definition
Five
Principles
Value
Value
Stream
Flow Pull Perfection Six Sigma
Types of
Variability
- 9. © Rajan Kanwar (647 406 6885)
Slide #: 9
Key to Lean Improvement is…
VA
NNVA
WS
VA
NNVA
WS
VA
NNVA
WS
Lean
Definition
Five
Principles
Value
Value
Stream
Flow Pull Perfection Six Sigma
Types of
Variability
- 10. © Rajan Kanwar (647 406 6885)
Slide #: 10
Principle 2
Value
Value
Stream
Flow
Pull
Perfection
Lean
Definition
Five
Principles
Value
Value
Stream
Flow Pull Perfection Six Sigma
Types of
Variability
- 11. © Rajan Kanwar (647 406 6885)
Slide #: 11
Value Stream Mapping
• Lean introduces Value Stream
Mapping as a tool to focus on
lead time-related waste, such as:
set-ups, queuing, and inventories
• Is the central tool for
understanding how value is
delivered
• Identifies VA / NVA steps and the
information flow
Step 1 Step 2 Output
Lean
Definition
Five
Principles
Value
Value
Stream
Flow Pull Perfection Six Sigma
Types of
Variability
- 12. © Rajan Kanwar (647 406 6885)
Slide #: 12
An example of Value Steam Mapping
Customer wants to
change wireless plan
Customer (cx)
Requirement
CX calls
provider
Input
Call is
answered
Provider
(Rep) asks
CX to state
account info
Rep verifies
and asks
how s/he
can help
CX asks Rep
details
about
existing
plan
Rep states
existing
plan details
CX confirms
and asks for
other plans
Rep
retrieves
and
discusses
other plans
CX analyzes
and selects
a new plan
Rep
confirms
and
processed
the order
New plan
activated
Value-add time:
Non value add time:
New Plan
Output
CT CT CT CT CT CT CT CT CT CT
NVA VANNVA NNVANVA NVA NVA NVA NVA NVA
Opportunities: Potential Areas to focus on
NVA NVA NVA NVA NVA NVA NVA NVA NVA NVA
Customer experience?
Lean
Definition
Five
Principles
Value
Value
Stream
Flow Pull Perfection Six Sigma
Types of
Variability
- 13. © Rajan Kanwar (647 406 6885)
Slide #: 13
Principle 3
Value
Value
Stream
Flow
Pull
Perfection
Lean
Definition
Five
Principles
Value
Value
Stream
Flow Pull Perfection Six Sigma
Types of
Variability
- 14. © Rajan Kanwar (647 406 6885)
Slide #: 14
Flow …
• Is continuous
• Has minimum movement
Lean
Definition
Five
Principles
Value
Value
Stream
Flow Pull Perfection Six Sigma
Types of
Variability
- 15. © Rajan Kanwar (647 406 6885)
Slide #: 15
Principle 4
Value
Value
Stream
Flow
Pull
Perfection
Lean
Definition
Five
Principles
Value
Value
Stream
Flow Pull Perfection Six Sigma
Types of
Variability
- 16. © Rajan Kanwar (647 406 6885)
Slide #: 16
Pull system produces once demand is triggered
Downstream
• Customer pulls when needed
Trigger
• Informs production (what,
when, where, how many)
Upstream
• Output is produced
Service
• Delivered to customer
Lean
Definition
Five
Principles
Value
Value
Stream
Flow Pull Perfection Six Sigma
Types of
Variability
- 17. © Rajan Kanwar (647 406 6885)
Slide #: 17
Principle 5
Value
Value
Stream
Flow
Pull
Perfection
Lean
Definition
Five
Principles
Value
Value
Stream
Flow Pull Perfection Six Sigma
Types of
Variability
- 18. © Rajan Kanwar (647 406 6885)
Slide #: 18
Challenge status quo
• Constantly seek new ways to
improve the process
Lean
Definition
Five
Principles
Value
Value
Stream
Flow Pull Perfection Six Sigma
Types of
Variability
- 19. © Rajan Kanwar (647 406 6885)
Slide #: 19
Six Sigma improves quality and repeatability
through the reduction in variation
Target
Reduce
Variability
&
Center
process
Lean
Definition
Five
Principles
Value
Value
Stream
Flow Pull Perfection Six Sigma
Types of
Variability
- 20. © Rajan Kanwar (647 406 6885)
Slide #: 20
Types of variability to address
Arrival Request Capability Effort
Subjective
Preference
Lean
Definition
Five
Principles
Value
Value
Stream
Flow Pull Perfection Six Sigma
Types of
Variability
