Lean Six Sigma Leadership 062507

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High level overview of Lean Six Sigma Leadershp roles and areas of focus for implementation.

High level overview of Lean Six Sigma Leadershp roles and areas of focus for implementation.

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  • 1. Lean-Six Sigma Leadership LARRY E. PENNINGTON, PE, CSSBB
  • 2. What Is Six Sigma?
    • Six Sigma is a problem solving methodology and collection of tools to analyze and remove sources of process variation
      • Define
      • Measure
      • Analyze
      • Improve
      • Control
    6s Measurement / Goal Vision / Philosophy Problem Solving Process
  • 3. Six Sigma (cont’d)
    • 6σ denotes a process that has six standard deviations between the mean and either specification limits.
    • 6σ denotes a process that has only 3.4 defects per million.
    • 6σ is a process improvement methodology
  • 4. What Is Lean?
    • Lean is a collection of tools and methods designed to eliminate waste, reduce delays, improve performance and reduce costs
    • Lean focuses on eliminating non-valued add; where traditional cost down focuses on reducing the time in value added steps.
    • Lean should achieve sustainable business improvements with emphasis on verifiable financial results.
  • 5. Eliminating The Seven Wastes Predefined methodology to identify and eliminate waste.
  • 6. Why Lean Sigma?
    • Provides a consistent, quantitative, problem solving methodology
    • Helps Improve financial strength thereby helping the company, the customer, and the employee
    • Need to build into our culture
  • 7. The Focus Of Six Sigma Y = f(X) Focus on X’s (process inputs) to improve the Y (process output)
    • Y
    • Dependent
    • Output
    • Effect
    • Symptom
    • Monitor
    • X 1 . . . X N
    • Independent
    • Input
    • Cause
    • Problem
    • Control
    f (X) Y=
  • 8. Why Apply Six Sigma
    • “Best in Class” have demonstrated 6σ
    • A 4σ company spends >10% of revenue on internal and external repair
    • A 6σ company spends <1% of revenue on internal and external repair
  • 9. Key to Achieving Six Sigma Quality
    • Focus on the customer & listen to the voice of the customer
    • Select process that affect customer satisfaction
      • Reduce variability in all processes
      • Center all processes on the target
      • Gather data to reduce defect levels
      • Control the inputs and monitor the outputs
  • 10. Characteristics of Six Sigma Programs
    • Goal of reducing variation, COPQ, and waste in all processes.
    • Includes transactional processes as well as manufacturing processes.
    • Uses the best talent in the organization, provide intensive training, deploy them on biggest projects.
    • Structured problem solving project approach.
    • Emphasis on measurable results that are maintained over time.
  • 11. Contrast with Other Quality Initiatives
    • Improvement initiatives typically involved only a select few, usually from the Quality Department, only people available vs best people for the project.
    • Training - little to none.
    • Smaller, less tangible gains not visible at the bottom line.
    • Gains often disappeared once formal projects ended.
    • “ Feel good” exercise with little to show for efforts.
  • 12. How Lean Sigma Programs Differ
    • Top management support & participation essential for success.
    • Infrastructure includes: Steering Committee, Executive Committee, Finance Dept, Program Office.
    • Intensive Training and Coaching
    • Measurement and tracking of financial metrics.
    • Projects chosen for 3-6 month time frame.
    • Control plans done to hold gains.
  • 13. Executive Leader Roles:
    • High Level Executive committed to Six Sigma Success
    • Knowledgeable in Six Sigma Process
    • Assign key individuals to the Champion/Sponsor Position.
  • 14. Champion/Sponsor Roles :
    • High Level Executive
    • Oversee the Black Belt positions
    • Provide resources to complete the job
    • Assist Black Belts to select projects
    • Benchmark with other organizations
  • 15. Major Players and Roles
    • Executive Committee - Executive must announce and support the roll-out of Six Sigma and put resources in place.
    • Steering Committee - Operations Managers/VPs and representatives from all functional areas who meet regularly to review progress of projects after selection of projects and people .
  • 16. Major Players and Roles (cont’d)
    • Process Owners: People (usually managers) responsible for the area where the improvement project is taking place. Set goals and objectives for the project leaders.
    • Green Belts: Typically receive at least 1 week of training. They do data collection, simple data analysis under direction of Black Belts. May do projects of limited scope.
  • 17. Major Players and Roles (cont’d)
    • Black Belts: Project leaders, project team coaches, change agents. Typically receive 4 weeks of training spread over four months. Responsible for the financial outcome of their projects.
    • Master Black Belts: Primary trainer and coach of Black Belts and Green Belts. A resource to provide technical guidance in the proper application of the tools during project execution.
  • 18. Methodology: D-M-A-I-C
    • A 5 step approach
    • Customer driven quality focus
    • A project-based infrastructure as previously described
    • Emphasis on providing extensive training in statistical quality tools
  • 19. Next Step - Six Sigma for Champions
      • Define - Select the right project &
      • state it in objective terms
      • Measure - Identify the key characteristics & measure performance of products/process
      • Analyze - Identify the key process determinants to root cause
      • Improve - Model process, change process & optimize performance/reducing variation
      • Control - Hold the gains to insure permanent
  • 20. Define Phase
    • Defining the Project
      • Done by members of Steering Committee
      • Goal to have a well defined project assigned to a process improvement team
        • Objectives and Boundaries Set
        • Business Goals, Customer Needs & End Goal(s)
      • Outputs: Project Scope w/Critical Goals
        • How to Include Cost of Poor Quality
        • Including the Voice of the Customer
  • 21. Stakeholder Analysis
    • Identification of stakeholders involved
    • Identification and removal of resistance by involving stakeholders in change process to provide for:
      • Needed buy-in
      • Alternate solutions
      • Removal of pitfalls
    • Stakeholders can be:
      • Managers-employees-customers-suppliers-finance
  • 22. Team
    • Team members identified & specified
    • Projects of significant size with extensive data analysis should be led by a trained Black Belt.
    • Projects broken down into smaller components or involving process redesign, a Green Belt leader is appropriate.
  • 23. Expected Benefits
    • Project Charter should include:
    • Summary of tangible and intangible benefits of the proposed project.
      • Baseline Measure – The ‘As-Is” condition
      • Improvement target
      • Project savings
    • Tangible benefits should be expressed both in terms of the relevant performance indicator and the dollar savings.
    • Examples of intangible benefits might be: improved customer satisfaction, improved company morale, etc.
  • 24. Selecting Projects
    • Projects can be submitted by any management member, and are usually submitted to a Steering Committee.
    • The role of the Committee is to review the proposed projects and select those that will be actioned.
  • 25. Define Phase Deliverables
    • Management
      • Projects prioritized with Project Charters
      • Personnel assigned to lead and participate
      • Finance representation to validate savings
    • Project Leader
      • Clear project mission and goals accepted
      • Cost of Poor Quality study within scope of project boundaries.
  • 26. Measure Phase
    • Goal: Pinpoint location or source of problem
    • Exit with statistical characterization of our output (Y) variables and Key Process Input (X) Variables (KPIVs)
      • Understand Existing Conditions and Problems
      • Use the tools available to measure the magnitude of our problem & how to use basic quality tools (eg “AS IS” workflow model)
  • 27. Measuring Project COPQ
    • Identify the activities (wastes) that result from poor quality. Use brainstorming methods with project team.
    • Determine the effects of these activities on all departments concerned.
    • Collect data and estimate the costs for these activities
    • Have the resulting COPQ model validated by accounting or finance representative.
  • 28. Analyze Phase
    • Begin with theories of process problems derived from measure phase
    • Collect data to confirm or reject theory
    • Identify vital few root causes (inputs)
    • Eliminate the potential inputs (Xs) that do not impact our outputs (Ys)
      • Cause and Effect Diagram
      • Association Matrix showing impact(s)
  • 29. Improve Phase
    • Select the optimum solution that was Proposed, Developed, Evaluated, and Implemented
    • Review outputs to determine the greatest opportunity for improvement.
      • Design of Experiments
      • Evolutionary Operation
      • “ To Be” workflow with possible solutions
      • Simulation Results - solutions & alternatives
  • 30. Control Phase
    • Implement the Solution(s), selected & validated, with controls in place to maintain gains.
    • Refine steps with new standards created
    • Document new, improved process
    • Turn revised process back to the control of the process owner - FIX PERMANENT!!
    • Further improvements over time
  • 31. Summary:
    • Management philosophy of quality
    • Statistical target of six sigma or 3.4 defects in one million opportunities
    • Components of Six Sigma are people power and process power
      • Executive Leader, Champion, Master Black Belt, Black Belt, and Green Belt
      • Define, Measure, Analyze, Improve, Control
    • Customer focus