Learning Objectives 1. Understand DMAIC and Lean Methodologies. 2. What are the differences between Six Sigma and Lean? 3. What are the tools used for Six Sigma and Lean? 4. Where are Six Sigma and Lean Methodologies used?Lean vs. Six Sigma 2 .PPT All Rights Reserved, Juran Institute, Inc.
Six Sigma Basic Premise Outputs Inputs (CTQ) Do you know what is important to customers? Do you know what “Xs” are important to meet customer needs? How do the “Xs” drive outcomes, revenue, and cost?Lean vs. Six Sigma 3 .PPT All Rights Reserved, Juran Institute, Inc.
Six Sigma DMAIC Methodology Develop Project Charter Define Determine Customers & CTQs Map High-Level Process Establish and Measure Ys Plan for Data Collection Measure Validate Measurement System Measure Baseline Sigma Identify Possible Xs Test Hypotheses Analyze List Vital Few Xs Select the Solution Improve Design Solution, Controls, and Design for Culture Prove Effectiveness Identify Control Subjects Control Develop Feedback Loops Develop Process Control Plan to Hold the Gains Implement, ReplicateLean vs. Six Sigma 4 .PPT All Rights Reserved, Juran Institute, Inc.
Six Sigma Methodology Practical Problem Define Characterization Measure Process Statistical Problem Y Statistical Solution Analyze Optimization Process Improve Practical Solution Xs Control Goal: Y = f ( x )Lean vs. Six Sigma 5 .PPT All Rights Reserved, Juran Institute, Inc.
Sources of Variation y Poor Design Changing Needs Measurement System Insufficient Process Capability Skills & Behaviors xLean vs. Six Sigma 6 .PPT All Rights Reserved, Juran Institute, Inc.
Lean Methodology Define Stakeholder Value and CTQs Define Define Customer Demand Map High-level Process Value Assess for 6S Implementation Measure Customer Demand Plan for Data Collection Measure Validate Measurement System Create a Value Stream Attribute Map Value Determine Pace, Takt-time and Manpower Identify Replenishment and Capacity Constraints Implement S1-S3 Analyze the Value Stream Attribute Map Analyze Analyze the Process Load and Capacity Perform VA/NA Decomposition Analysis Process - Flow Apply Lean Problem Solving to Solve for Special Causes Conduct the Rapid Improvement Event Improve Design the Process Changes and Flow Feed, Balance, Load the Process Process - Pull Standardize Work Tasks Implement New Processes Stabilize and Refine Value Stream Control Complete Process and Visual Controls Process Identify Mistake-proofing Opportunities Implement S4-S6 Control Plan, Monitor Results, and Closeout ProjectLean vs. Six Sigma 7 .PPT All Rights Reserved, Juran Institute, Inc.
Why Define a Process as a Value Stream? A Value Stream Focuses attention on what is important for the customer. Identifies all the necessary components to bring a product or service from conception to commercialization. Identifies waste inherent in processes and works to remove it. Reduces defects in products and deficiencies in processes. Focuses on improving specs and cost.Lean vs. Six Sigma 8 .PPT All Rights Reserved, Juran Institute, Inc.
What Is Typically Found Lean Value Stream Management starts with defining value in terms of products and process capabilities to provide the customer with what they need at the right time and at an appropriate price. Non-value added/waste Value addedLean vs. Six Sigma 9 .PPT All Rights Reserved, Juran Institute, Inc.
The Eight Wastes adapted from Taiichi Ohno 1. Overproduction—making or doing more than is required or earlier than needed. 2. Waiting—for information, materials, people, maintenance, etc. 3. Transport—moving people or goods around or between sites. 4. Poor process design—too many/too few steps, non- standardization, inspection rather than prevention, etc. 5. Inventory—raw materials, work-in-progress, finished goods, papers, electronic files, etc. 6. Motion—inefficient layouts or poor ergonomics at work- stations or in offices. 7. Defects—errors, scrap, rework, non-conformance. 8. Underutilized personnel resources and creativity—ideas that are not listened to, skills that are not utilized.Lean vs. Six Sigma 10 .PPT All Rights Reserved, Juran Institute, Inc.
History of Lean US war production Large quantities TPS Rapid pace High training Toyota JIT Ohno and Just-in-Time Shingo Flow of work Schonberger Lean “Japanese Small batch Womack “Mach. Mfg sizes Changed World” New philosophy Techniques” Eliminate Waste Lean 6s Takes TPS and imports Improve Added to 6s tool to US performance kit Flexibility 1940 1952 1964 1980 1990 2000 2008Lean vs. Six Sigma 11 .PPT All Rights Reserved, Juran Institute, Inc.
The Methods Methods Results Improve Speed Higher Quality Lean Lower Costs & Sustain Performance Six Culture Change Sigma Dashboard Results Achieve BreakthroughLean vs. Six Sigma 12 .PPT All Rights Reserved, Juran Institute, Inc.
How to Think About Improvement The Juran Trilogy ® Plan Control Improve DFSS RCCA Lean Six Sigma Lessons Learned Sporadic Spike Breakthrough Six Sigma Chronic Waste & Beyond COPQ Time Accelerated Change Management SupportLean vs. Six Sigma 13 .PPT All Rights Reserved, Juran Institute, Inc.
Matching Improvement Process to Need Small Gains or Medium Large Launch New Clear Solution Gains Gains Product, Service, or Process Plan, Do, Lean & Design for Change Study, Act Six Sigma Lean Management (PDSA) DMAIC Six SigmaLean vs. Six Sigma 14 .PPT All Rights Reserved, Juran Institute, Inc.
Lean and Six Sigma Analyze Improve Define Measure Control Process- Process- Value Value Process Flow Pull LEAN = Improvement principles focused on dramatically improving process speed and eliminating the eight deadly wastes. Define Measure Analyze Improve Control SIX SIGMA = Breakthrough Process, Design, or Improvement Teams focused on eliminating chronic problems and reducing variation in processes.Lean vs. Six Sigma 15 .PPT All Rights Reserved, Juran Institute, Inc.
Lean Project Attributes Simply stated: “Lean is about moving the Mean.” It focuses on efficiency. Lean reduces average cycle time. Lean reduces excess inventory. Lean improves average response time. ImprovementLean vs. Six Sigma 16 .PPT All Rights Reserved, Juran Institute, Inc.
Six Sigma Attributes Simply stated: “Six Sigma is about Reducing Variation.” It focuses on Effectiveness. The mean will most likely also be improved. Decrease defect rate Increase Process Yield ImprovementLean vs. Six Sigma 17 .PPT All Rights Reserved, Juran Institute, Inc.
Lean and Six Sigma Lean = Rapid Improvement Teams focused on dramatically improving process speed, and the elimination of the eight deadly wastes. Analyze Improve Define Measure Control IMPROVED Process- Process- Value Value Process EFFICIENCY Flow Pull Six Sigma = Breakthrough Process Improvement Teams focused on eliminating chronic problems and reducing variation in processes. IMPROVED Define Measure Analyze Improve Control EFFECTIVENESSLean vs. Six Sigma 18 .PPT All Rights Reserved, Juran Institute, Inc.
Lean Six Sigma Lean Six Sigma is an approach to integrating the power of Six Sigma Tools and Lean Enterprise Tools which can be applied within an organization to create the fastest rate of improvement, maximize shareholder value, and increase customer delight. Analyze Improve Define Measure Control Process- Process- Value Value Process Flow Pull Define Measure Analyze Improve ControlLean vs. Six Sigma 19 .PPT All Rights Reserved, Juran Institute, Inc.
Which Technique to Begin With? It is often advantageous to begin with Lean projects. – These are easier to understand and implement. Begin with streamlining processes and Rapid Improvement Events. – This gets the operation in good order. – Chronic problems are now easier to deal with. – “Low Hanging Fruit” is eaten. Next, select Six Sigma projects Other Reasons to Begin Lean?Lean vs. Six Sigma 20 .PPT All Rights Reserved, Juran Institute, Inc.
Lean Projects Use Lean when you are trying to streamline any process and reduce process waste. Improve assembly line throughput Reduction in Finished Goods Inventory Reduce the time to process new proposals Reduce machine setup time Improve order processing timeLean vs. Six Sigma 21 .PPT All Rights Reserved, Juran Institute, Inc.
Six Sigma Projects Use Six Sigma where process metrics are more difficult to collect or understand, and project success requires analysis of multiple input factors (Xs). These are often chronic problems. Improve yield on a continuously running machine Reduce defects on a machine with multiple inputs and machine settings Reduce the amount of wait time for a call center Improve the number of quality new hiresLean vs. Six Sigma 22 .PPT All Rights Reserved, Juran Institute, Inc.
Mixed Projects What happens when you start a Six Sigma Project and it turns into a Lean project? It is all about the correct tools. Use the Lean tools for project success. What happens if a Lean project turns into Six Sigma? Depending when this is discovered, it may mean going back to utilize some Six Sigma tools before proceeding.Lean vs. Six Sigma 23 .PPT All Rights Reserved, Juran Institute, Inc.