Microsoft PowerPoint - LSS for PMI conference 4_23_07 rev 2 ...


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Microsoft PowerPoint - LSS for PMI conference 4_23_07 rev 2 ...

  1. 1. Lean Six Sigma (LSS) April 2007 4/23/2007 1
  2. 2. Agenda Background of Lean Six Sigma (LSS) Brief Tutorial of LSS LSS Program Status 2
  3. 3. 6σ Lean Six Sigma Program 3
  4. 4. LSS Background • New Director – 2005 • Used Lean Six Sigma on previous assignments • Investigate use of LSS for process improvement 4
  5. 5. Approach for FY06 Program Option 1: Cultural Paradigm Shift-Entire Organization DIRNSA IA D SID ADET Option 2: Targeted Organizations, Processes, & Projects DIRNSA IA D SID ADET 5
  6. 6. LSS Project Structure Top Leaders Champion #1 Champion #2 Champion #3 Team Lead Team Lead Team Lead Blackbelt Blackbelt Blackbelt Team members/Greenbelts Team members/Greenbelts Team members/ Greenbelts 6
  7. 7. What is Lean Six Sigma?? 7
  8. 8. Simply Put: Lean Six Sigma is a Business Model Structured methodology Customer focused Data collection and analysis Proven tools and techniques Producing: •Reduced cycle time •Optimized resources •Elimination of waste 8
  9. 9. Business Model Evolution Lean Six Sigma – Carefully select critical, Organizational & Process Maturity processes to target for improvement using Lean Six Sigma techniques CMMI – Determine if the defined processes are the right processes. Compare processes to CMMI business model. Define the missing processes. USE EXISTING CMMI PROGRAM -Malcolm Baldridge ISO 9000– Define & document processes (they don’t have -Business Process Re- to be good processes… just defined & documented) engineering TQM – establish culture of process improvement; Learn basis process tools. Time 9
  10. 10. What’s different this time? LEAN SIX SIGMA •Leadership selects goals & PAST EFFORTS projects •Not mission driven •Leadership is involved & •Leadership not involved committed •Customers’ needs not •Customer focused: Projects known driven from customer needs •Projects focused internally •Training is analytical & •Teams not focusing on process driven Mission critical problems •Decisions are data driven •Training focused on team •Statistical software building available for number •Seen as “Flavor of the crunching month” •Build on lessons learned from previous efforts 10
  11. 11. Lean & Six Sigma Tenets Lean Six Sigma Waste reduction y Variability reduction en c Value stream Effici Customer focused nes s ve Internally focus Project based ecti Eff Speed based analysis Project metrics Operational metrics Specialists: Greenbelts, Specialists: Lean Blackbelts (BB), Master BB Masters Breakthrough Continuous improvement Improvement Combining Lean and Six Sigma optimizes focus on both the process and on the customer. 11
  12. 12. Lean Six Sigma Tools Affinity Diagrams Goal Trees Cause & Effect Diagrams Pareto Charts Charter Prioritization Matrix Control Charts Process Capability Critical to Quality Tree Regression (CTQ) Design of Experiments Sampling (DOE) Rolled Throughput Yield FMEA Run Charts Frequency Plots Scatter Plots Gage R&R Gantt Charts SIPOC Voice of the customer 12
  13. 13. Lean Six Sigma – 2 Key Points to Remember 1. Lean Six Sigma Model: 5 step process called DMAIC : Define, Measure, Analyze, Improve, Control 2. Six Sigma Measurement: Your process is so good that errors only occur 3.4 times for every million opportunities 13
  14. 14. 1. DMAIC: Foundation of LSS Model Define Measure Analyze Improve Control Measure the Identify root Identify solution Validate results, Charter the problem and causes and alternatives; refine solution project understand solution plan and implement and transition to requirements alternatives solutions Process owner Data Analyze Develop Select Complete Collection – Data Implemen- the Voice of the Improvement and tation Charter Customer Solution Process VOC Develop Data Generate Implement the Collection – Hypotheses Test Process Project Performance About Solution Management Plan Data Causes Draw Set Targets Verify Develop Monitor High-Level And Key Root Pilot and Process Specific Causes Plan Control Map Limits Process Calculate Generate Implement Process Solutions Pilot and Sigma Analyze Level Results 14
  15. 15. 2. Sigma Concept 4 sigma: 6 sigma: No hot water for 54 No hot water for 2 hours/year minutes/year 20,000 lost articles of mail 7 lost articles of mail / hour / hour Unsafe drinking water for Unsafe drinking water for 15 minutes / day one-half second / day 2 too short or too long 0.011 too short or too long landings at major landings / day; or 4 too airports / DAY short/long landings per 5,000 incorrect surgical YEAR operations / week 3 incorrect surgical 200,000 incorrectly filled operations/ week prescriptions / year 68 incorrectly filled Rx’s / year 15
  16. 16. Sigma Example 25 minutes is Avg. time to work 50% Number of trips 500 69% =1.0σ 84% =2.5σ 98% =3.5σ 99.9% =4.5σ 5 99.99966% -=Y += = Y 6σ VALUES (time): 10 15 20 25 30 35 40 45 50 55 Drive time to work Ask: How much time do I need to allow to be 50% certain of . getting to work, 98% certain, 99.999666% certain? 16
  17. 17. Why do Lean Six Sigma? • Structured approach •….to solving problems • Customer focused •…find out what is critical to them • Reduce cycle time •….time, money, manpower, redundancy • Use facts and data •…to make decisions • Reduce variation •…to ensure a consistent, dependable service & product 17
  18. 18. Lean Six Sigma Program Status 18
  19. 19. “Aha’s!” from first LSS teams Identified cycle time is the main issue Teams were surprised at ‘voice of customer’ Data analysis was eye-opening Significant behavior changes Capitalized on “low hanging fruit” opportunities Identified critical spin-off projects Interaction & synergy among the teams 19
  20. 20. LSS Training “Greenbelt” - team leaders & members, 5 days “Champion” – team champions, 1 day “Whitebelt” – all government personnel Whitebelt – 2 hours, on line 20