Introduction to Lean Sigma (LSS)

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Introduction to Lean Sigma (LSS)

  1. 1. Catherine Jones
  2. 2. What is Lean (Six) Sigma (LSS) A philosophy of doing business / a business management strategy Lean Six Sigma combines the two most important improvement trends of our time:  Reducing the variation of the process and making work better (using Six Sigma methodology)  Making work faster and more efficient (using Lean Manufacturing principles).
  3. 3. Six Sigma  A statistical approach developed in Motorola  Increase quality through reduction of variation in manufacturing processes  Application of ‘tools’ PBC, 5Ys, Pareto analysis, DMAIC, PDCA etc
  4. 4. Lean  W. Edwards Deming (October 14, 1900 – December 20, 1993) was an American statistician, professor, author, lecturer, and consultant.  Japan  Ford Motor Company  Deming advocated that all managers need to have what he called a System of Profound Knowledge, consisting of four parts:
  5. 5.  Appreciation of a system: understanding the overall processes involving suppliers, producers, and customers (or recipients) of goods and services  Knowledge of variation: the range and causes of variation in quality, and use of statistical sampling in measurements;  Theory of knowledge: the concepts explaining knowledge and the limits of what can be known  Knowledge of psychology: concepts of human nature.
  6. 6. Go to Gemba! Japanese word In business the value adding activities occur in ‘Gemba’ Gemba is the source of all information!
  7. 7. Benchmarking Deployed flow charts Identified common wastes VAFA (Value Added Flow Analysis) Quality measures SPC
  8. 8. Deployed Flow Chart Customer Server Chef Start Take seat Takes order Cooked? Place order with chef Pick up order Cook food Plate up food Make and serve drink Toast? Make and serve toast Cooked ? Collect and serve Enjoy breakfast
  9. 9. Baseline measurements Product Science (hours) Cycle time (hours) Turnaround time (Days) A 0.5 3.75 16 B 1.25 4.6 17 C 2.0 7 30 D 1.5 7.3 31
  10. 10. Common Wastes  Handovers  Queuing  Storage  Multiple checks  Multiple SAP screens (IT)  Reworking  Inter site transfers  Administration (MI, time recording etc)
  11. 11. Quality Measures 0 2 4 6 8 10 12 14 16 18 20 Records Method Anti Contamionation Trianing& Comps Equipment Exhibit Management Validation Security Reports/ Statements Timliness Refmaterials Number of Drugs Quality Actions 0 2 4 6 8 10
  12. 12. SPC 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 Average Daily Imperfections with Control Limits Average Daily Imperfections Sample Mean Lower Control Limit Upper Control Limit
  13. 13. Developing ‘to be’ scenarios Brainstorming ‘To be’ Produced high level DFC PDCA – paper trials Data collection
  14. 14. Voice of the customer Wheel sessions Questionnaires Gemba
  15. 15. Data collection  DFC for ‘to be’  Test plan  Operational definitions  ‘Tag points’  Assumptions  Roles  Trial lab layout  Observations
  16. 16. Central versus Local analysis  Pugh Matrix Key Criteria Rating As-is Central Local analysis Calibration standards 4 + s Courier costs 3 _ + Validation 5 + _ Equipment 4 s _ Sum of positives 2 1 Sum of negatives 1 2 Sum of sames s s Weighted sum of positives 9 3 Weighted sum of negatives 3 9 Total sum 6 6
  17. 17. Centralisation v Local  Cause and Effect effect – TRTs greater than 24 hours, can not meet require deadline Trt exceeds 24 hours
  18. 18. Pareto charts 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% 100.00% 0 5 10 15 20 25 30 35 40 Time Quality Cost Service Sales Other Cause Cumulative
  19. 19. Continuous Improvement Kaizen Kai = Change Zen = Good (for the Better) The Basic Philosophy Is to Involve All Employees in Small, Daily Improvements within their Work Areas.
  20. 20. Summary  Measurement should be the means to improve understanding  People will do what is counted not what counts  Use customer data to drive change  If you manage by targets people cheat!
  21. 21.  “Efficiency is doing things right. Effectiveness is doing the right thing.” -Zig Zigglar (Author, salesperson and motivational speaker)  “The point is… you’d better figure out what your Customers – the Customers you want – value. Because that’s what they’ll buy. Anything else is a waste of their money, and they’ll figure that out in a hurry.” – Gordon Bethune (retired US airline executive. He was the CEO of Continental Airlines from 1994 until his retirement at the end of 2004)

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