6-Sigma Lean 101


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Basic SS and Lean used for production or services. The original is animated PowerPoint and available upon request by email to mrdrking@gmail.com

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6-Sigma Lean 101

  1. 1. 6-Sigma & Lean 101 ISandR Services Presents - A Lean-SS overview, not detailed presentation Introduction of Six-Sigma Tools – without stats  DMAIC process & tools associated with each phase Introduction of Lean Concepts  Identification of Waste  Lean Improvements in Gemba (Workplace) Sustainability  Business Score CardISandR@usa.com Copyright - ISandR Services and Accelper 1
  2. 2. 6-Sigma & Lean 101Process Improvement – “Describe & Measure” “When you can measure what you are speaking about, and express it in numbers, you know something about it; but when you cannot measure it, when you cannot express it in numbers, your knowledge is of a meager and unsatisfactory kind….” William Thompson (Lord Kelvin), 1824-1907 “If you cant describe what you are doing as a process, you dont know what youre doing.” W. Edwards Deming, 1900-1993ISandR@usa.com Copyright - ISandR Services and Accelper 2
  3. 3. 6-Sigma & Lean 101The Average and the Standard Deviation are Most Important X = (∑ xi ) / n AVERAGE S= ∑ (x − X ) i 2 STANDARD n −1 DEVIATION These metrics are important, but we will keep this simpleISandR@usa.com Copyright - ISandR Services and Accelper 3
  4. 4. 6-Sigma & Lean 101Process Improvement – “The Family Vacation” Example Start with the end in mind – THE GOAL Analogy of the family vacation  Would you start with how to pack better?  Where, What, Who - Destination, Activities, You &…? DEFINE  Activities, Accommodations, Alt Options, Where is Start  Route - how far/long, transport vehicle MEASURE  Cost of alternatives ANALYZE  What to take - backpacks or suitcase ANALYZE  What can be done better from last time IMPROVE  Stick to budget & plan CONTROLISandR@usa.com Copyright - ISandR Services and Accelper 4
  5. 5. 6-Sigma & Lean 101What is 6-Sigma? A Short History  Improvement tools known for a LONG time  Popularized by GE, Motorola, et al  Collection of tools with standardize usage!  About BEST in class  About dramatic improvement – not stats  ASQ – “80% of tools are not statistical”  Process based on D M A I C - Define - Measure - Analyze - Improve - Control Presentation parallels book “Stat Free Six Sigma” – P. Gupta (Accelper)ISandR@usa.com Copyright - ISandR Services and Accelper 5
  6. 6. 6-Sigma & Lean 101What is the Significance of the Words “6-Sigma”? What does “6-Sigma” imply?  Process of 3 defective parts per million (3ppm)  Depends on  Customers specified limits (Upper & Lower Bound)  Average in the process (Average or Mean)  Variability in the process (Standard Deviation)  Not all processes need to be 6-Sigma Capable A process that meets customer specifications by providing consistent accurate results with no variation - near zero defectsISandR@usa.com Copyright - ISandR Services and Accelper 6
  7. 7. 6-Sigma & Lean 101What is 6-Sigma? Statistics Concepts, Without Statistics Examples Mean = X Low Hi Customer Production – Limit Limit specifies size & location LL and UL of hole in a part Distribution: Service - Gaussian Variation = 2 σ preparation of Random tabloid content Normal Error & distribution, early vs late Characterizing The Process The Process 6σ1 sigma (σ)½ width at ½ height Good Mean Good Variability Process Capability Good Capability Closest Limit – X CpK = [ Closest Limit – X ] 3σ “Higher ‘sigma’ is better to avoid quality escapes!”ISandR@usa.com Copyright - ISandR Services and Accelper 7
  8. 8. 6-Sigma & Lean 101What Process Capability? mean LL HL variation This is previous slide Good Mean Poor Mean Poor Mean Good Variability Good Variability Poor Variability Good Capability Poor Capability Poor CapabilityISandR@usa.com Copyright - ISandR Services and Accelper 8
  9. 9. 6-Sigma & Lean 101What Makes 6-Sigma Work?  When everyone understands the Cost of Poor Quality  In / ext failures, inspection, testing, rework (calc $$s)  Align VOC and biz needs for big improvements  S M A R T goals  Specific – why, what, when, who, where, finally how  Measurable – which metrics: how much / many, B4 & after  Attainable – have resources: attitudes, abilities, finances  Realistic – challenging believable & achievable  Timely* – reasonable duration to complete with urgency  Visible with Executive Management Support  Employees encouraged to take risks (Deming, “Drive out fear”) * Could be “Tangible” – can experience with senses makes it more realistic and measurableISandR@usa.com Copyright - ISandR Services and Accelper 9
  10. 10. 6-Sigma & Lean 101What makes 6-Sigma Work? Culture Change Response Curve The energy to overcome an existing culture, make improvements and sustain change takes effort, time and money The paths are different for each organization. Effort/Cost/Resistance A I Organization B M C D Organization A Present Time FutureISandR@usa.com Copyright - ISandR Services and Accelper 10
  11. 11. 6-Sigma & Lean 101Customer Surveys – Voice Of the Customer (VOC) Research on customer satisfaction:  Determine what is quality [“Q is what the customer says it is”]  Find out what competitors are doing [better]  Define quality performance measures to identify defects [Pareto]  Identify factors to give a competitive edge [SWOT]  Identify urgent problems [low hanging fruit 1st with best ROI] Use multiple instruments to ID customer satisfaction. The opportunity to collect misleading or useless information is possible with just one instrument.  Surveys, Focus Group, Face-to-face, (Dis)satisfaction cards, Competitive Shopping - to gain information on -  Stated Needs, Real Needs, Perceived Needs, Cultural/Unstated Needs, Unintended Needs (Distinguish: Wants, Needs, Dissatisfiers)ISandR@usa.com Copyright - ISandR Services and Accelper 11
  12. 12. 6-Sigma & Lean 101 Customer Surveys - VOC Customer Response to Survey HI MUST Improve Maintain Good Work Feature Importance Opportunity Being & Performance Lost Maintain Current Over-effort for little Status value LO Feature/Process Satisfaction HI What was expected and experienced, what was the level of satisfaction and importanceISandR@usa.com Copyright - ISandR Services and Accelper 12
  13. 13. 6-Sigma & Lean 101 How to look for and improve the PROBLEMSISandR@usa.com Copyright - ISandR Services and Accelper 13
  14. 14. 6-Sigma & Lean 101What is DMAIC? Define – “the charter”: why do this (ROI / VOC), which process (Pareto), achieve what, measure what (errors, FTT), which resources, who’s involved, how to accomplish (brainstorm / fishbone), what is goal, when complete, what’s not included, … Measure – specify info sources to measure, precision, frequency of measurement, instruments used to measure, … Analyze – examine patterns, correlate dependent & independent variables (SIPOC / histograms / scatter-plots), root-cause, failure influence (FMEA-SOD), … Improve – development of alternatives to reduce cost, variation, & waste or for faster delivery, … Control – sustaining gains from project and maintaining process controlISandR@usa.com Copyright - ISandR Services and Accelper 14
  15. 15. 6-Sigma & Lean 101What are Tools Used with DMAIC? Define Measure Analyze Improve Phase Tools Brief Description D Project Priority Index PPI = (Benefit/Cost) X (Probability of Success/Time to complete in years) Time < .5 Estimated Savings/Cost > 2.0 Recommended PPI > 4.0 D Pareto A graphical tool to prioritize various defects to identify the most important one D Process Map A graphical description of activities and decision points D Kanos Analysis A graphical tool to identify customer critical requirements, including customers `love to have requirements D SIPOC An excellent tabular capture of most of the process constraints D CTQ Operational critical-to-quality characteristics related to the customer expectation D Project Charter Project plan with clearly-defined goals and milestones M Cost of Quality Breakdown of product or service cost related to appraisal, failures and prevention M DPU A product measurement, which is a ratio of the number of defects observed per unit verified M Yield The percent of process output with no error or defect. A DPMO A process measurement, which is the DPU normalized to the product or process complexity A Sigma Level A business measurement, estimated from DPMO, commonly used for benchmarking A Average Typical performance I Range Range of performance (maximum – minimum) “Stat Free Six Sigma”, GuptaISandR@usa.com Copyright - ISandR Services and Accelper 15
  16. 16. 6-Sigma & Lean 101What are Tools Used with DMAIC? Improve Control Phase Tools Brief Description I Standard Deviation More accurate estimate of performance range I Statistical Thinking Ability to distinguish assignable causes from random causes of variation I Root Cause Analysis Fishbone diagram consisting causes that produce effects - materials, machines, methods, man, nature, measurements I FMEA Failure Mode and Effects Analysis for anticipating problems I Scatter Plot Graphical display of relationship between output (dependent) and input (independent) variables I Visual Regression Analysis Estimate of relationship between input and output variables I Component Search To identify the defective part in an assembly by exchanging the questionable part between good and bad units I Comparative Tests - Improving Means Evaluating significance of shift or change in the process means I Comparative Tests - Improving Variance Ratio of variances between the current and reduced variances I Full Factorial Experiment Evaluating various combinations of multiple variables to determine the right combination for best performance. Total combinations = level to the power variables (Lv, e.g., 23 = 8) C Process Thinking (4P Model) A logical building block of the process management for achieving excellence. 4P => Prepare 4Ms, Perform Well, Perfect on target, Progress by reducing inconsistencies C Management Review A review meeting led by the leader to ensure targeted performance is achieved and to identify necessary actions to sustain improved performance C Control Chart Graphical tool to sustain normal (without known problems) behavior of the process C Scorecard Measure of business performance for identifying new opportunities “Stat Free Six Sigma”, GuptaISandR@usa.com Copyright - ISandR Services and Accelper 16
  17. 17. 6-Sigma & Lean 101Good Charter Components? Business need - cost reduction, margin increase, government compliance or increased customer satisfaction. Business advantage – ROI? - case should show the business need as dollars ($$s) to substantiate which project’s selection. High-level project scope – sponsor’s vision of the project. Critical to success factors – ID project, team, deliverables, schedule, what is needed for project success: scope, schedule, Constitution cost, or quality. Project constraints, risks and assumptions – document these conjectures; revisit during project to see if these remain true. Bill of Rights Authority of the project manager – what is the responsibility of Plans Change the project manager, to clarify their role assists with future decisions (controversial?) dealing with the stakeholders and organization. Signatures – demonstrates management importance & support Example of form to assist in addressing items to considerISandR@usa.com Copyright - ISandR Services and Accelper 17
  18. 18. 6-Sigma & Lean 101DMAIC Tools – PARETO Ranking of IssuesCustomers Order Complaints *Late 192Defective 44 MinitabRude CS 37No call back 23Wrong Item 72Incomplete 101Refund late 17Wrong Price 15No Gift Card 3 Figure out cost/benefit ExcelMissing item 2Not New - Used 12Never Received 7ISandR@usa.com Copyright - ISandR Services and Accelper 18
  19. 19. 6-Sigma & Lean 101Process Map (This is the “as is” also need the “proposed”) ORDER FULLFILLMENT SWIMLANE FLOWCHART CUSTOMER SERVICE ACCOUNTING WAREHOUSE Possibilities for improvement? ENGINEERING Loops and SHIPPING Many Crossings & RECEIVING Created with VisioISandR@usa.com Copyright - ISandR Services and Accelper 19
  20. 20. 6-Sigma & Lean 101What is SIPOC? Look for relationships so Input improves stability in Output Suppliers – individuals providing Suppliers Inputs Process Outputs Customers resources Paper Cliffnotes Bookclubs Graphics Figs & Photos DVDs & CDs Audio books Electronics Electronic Docs Abstracts Web Whit Papers Inputs – info, materials & Binders Album of Related work Libraries Services Authors Original Written Manuscript Exercises Consultants Training Process – value added Scholarly Educators & Researchers Instructional References Trainers Info transformation steps Editors Suggested Adds & Deletes Magazines Library Reference Docs Outputs – final product or service Process for Publishing and Distribution of Scholarly Research and Textbook Materials Customers – entity finding value Graphics Publisher First Authors submits Editor Process Approval Printing Shipment submit > figures > checks > > > Distributo > & Printing Promotio of Orders content and content r Orders in output photos Schedule nISandR@usa.com Copyright - ISandR Services and Accelper 20
  21. 21. 6-Sigma & Lean 101What is SWOT?  Internal Characteristics to Business  STRENGTH – list and find how to improve these  WEAKNESSES – list and find how to minimize these  External Characteristics to Business (in Industry or with the Competition)  OPPORTUNITIES – what can you take advantage of  THREATS – what should you avoidISandR@usa.com Copyright - ISandR Services and Accelper 21
  22. 22. 6-Sigma & Lean 101Cost of QualityThe “cost of quality” isn’t the price of creating a quality product or service. It’s the cost of NOT creating a quality product or service. Prevention Costs - New product review, Quality planning, Supplier capability surveys, Process capability evaluations, Quality improvement team meetings, Quality improvement projects, Quality education and training, Appraisal Costs Inspection Costs - measuring, evaluating or auditing products or services to assure conformance to quality standards and performance requirements; Incoming and source inspection/test of purchased material; In-process and final inspection/test; Product, process or service audits; Calibration of measuring and test equipment; Associated supplies and materials; Failure Costs Internal Failure Costs - Failure costs occurring prior to delivery or shipment of the product, or the furnishing of a service, to the customer. Scrap, Rework, Re- inspection, Re-testing, Material review, Downgrading External Failure Costs - Failure costs occurring after delivery or shipment of the product -- and during or after furnishing of a service -- to the customer. Processing customer complaints, Customer returns, Warranty claims, Product recallsISandR@usa.com Copyright - ISandR Services and Accelper 22
  23. 23. 6-Sigma & Lean 101Brainstorming – Fishbone / Cause-Effect / Ishikawa This is a way of analyzing problem and get to the root cause The effect is usually negative - a problem The problem should be specific and clearly stated The ideas are generated by using brainstorming (vocal or silent) Keep the group to asking themselves “what would cause the problem?” Keep attention on the effect of the problem – not criticism or how to fix The goal is to find as many sources for variation as possible that cause the problem Measurements Machine Man PM vs AM Shift Temp RMAs Effect Season Storage Preparation Methods Mother Nature MaterialsISandR@usa.com Copyright - ISandR Services and Accelper 23
  24. 24. 6-Sigma & Lean 101 FMEA – Failure Mode Effects Analysis Determine what can go wrong, the severity, and how to avoid it Risk Assessment should be a log controlled number for tracking the FMEA Number: This document Probabilitydesign responsibility: Which department or group is responsible for The of The part number, name, or other description Effect of Failure Occurrence this design? for FMEA preparation The person responsiblePart Number & Function Severity The date the FMEAcomponent partand any necessary revision level The subsystem or was prepared number getting detailed analysis Potential Failure Ability toThe component function Detect mode The potential failure Risk Priority Number The potential effect of failure Cause of Failure The potential cause of failure What are the current controls in place to prevent Re-evaluation Corrective Actions & the cause from Control for Failure O is theoccurring? this failure mode will occur. This index is from 1 to 10 probability with 1 being virtually no chance and 10 being near certainty of occurrence. S is the severity of the effect of the failure on the rest of the system if the failure occurs. Values are from 1 to 10. A value of 1 means the user will be unlikely to notice with a 10 meaning that the safety of the user is in jeopardy. D is a measure of the effectiveness of the current controls to identify the potential weakness or failure prior to release to production. This index ranges from 1 to 10. A value of 1 means this will certainly be caught whereas a value of 10 indicates the design weakness would most certainly make it to final production without detection. RPN The Risk Priority Number is the product of the indices from the previous three columns. RPN = O•S•D The actions then are based upon what items either have the highest RPN and/or where the major safety issues are. There is a column for actions to be taken to reduce the risk, a column for the responsibility and finally a column for the revised RPN once corrective action is implemented. FMECA provides a disciplined approach for the engineering team to evaluate designs to ensure that all the possible failure modes have been taken into consideration. QCI – Indiana Quality Council ISandR@usa.com Copyright - ISandR Services and Accelper 24
  25. 25. 6-Sigma & Lean 101Average, Standard Deviation, Max Value, Min Value in Data Sets Average Standard Maximum Minimum Deviation Active CellISandR@usa.com Copyright - ISandR Services and Accelper 25
  26. 26. 6-Sigma & Lean 101Evaluating Data Quantify what you want to improve and make decisions based on the data.ISandR@usa.com Copyright - ISandR Services and Accelper 26
  27. 27. 6-Sigma & Lean 101Comparative Tests - Improving Means & Variance - Visualization Use Methodsfor determining significant Make decisions Easier T-test to Visualize the Data to difference in Means MiddleF-test for determining significant difference in Variance Data Range 50% of MeanData 6 Sampl es - Compar i son of Means and Var i at i on 6 Sampl es - Compar i son of Means and Var i at i on 2.0 2.0 1.8 1.8 1.78123 1.68022 1.6 1.6Dat a Dat a 1.52912 1.45738 1.47119 1.47366 1.4 1.4 1.2 1.2 1.0 1.0 sample1 sample2 sample3 sample4 sample5 sample6 sample1 sample2 sample3 sample4 sample5 sample6 Same Mean Diff Mean Same Mean Same Mean Diff Mean Same Mean Same Vari(1) Same Vari(2) Diff Vari(3) Same Vari Same Vari Diff VariISandR@usa.com Copyright - ISandR Services and Accelper 27
  28. 28. 6-Sigma & Lean 101Yield - Efficiency of the Process %Yield most familiar for defect eval Units Pr oduced − DefectiveUnits %Yield = *100 Units Pr oduced 500 − 26 %Yield = *100 = 94.8% 500 DPU TheseTotalDefecformulas DefectsPerUnit = DPU = are tsObserved DPU = 53 with examples from = .106 Units Pr oduced 500 this table. Please Defect per Million Opportunities (DPMO) - the number of ways a defect can occur. If each item could at theseto fail (label, scratch, color, wrong info, performance,…) then look have 8 ways offline. DPU *1,000,000 0.106 *1,000,000 106,000 DPMO = = = = 13,250 # ofWayUnitCanBeDefective 8 8 Rolled Throughput Yield (RTY) What is overall Y1 x Y2 chainx Y4 yield in x Y3 of processes? Yield Yield Yield Yield Y1=0.90 Process 1 = .9 Y2=0.90 Process 2 = .9 Y3=0.90 Process 3 = .9 Y4=0.90 Process 4 = .9 (.90)x(.90)x(.90)x(.90)= Guess .656 65.6%ISandR@usa.com Copyright - ISandR Services and Accelper 28
  29. 29. 6-Sigma & Lean 101 Scatter Plot – Visualize Process Data & Look for Trends Y has equivalent response to X and Y has varying response to X and similar variation along response curve different variation along response curve 25 20Dependent Variable Y y y=f(x) 15 10 x 5 0 0 5 10 15 20 25 Independent Variable X What is different about processes? ISandR@usa.com Copyright - ISandR Services and Accelper 29
  30. 30. 6-Sigma & Lean 101 Control/Run Chart - Variable & Attribute - Track/React to Trends Average & Range SPC Chart 31 UCL (3ϭ) 29 Continuous 27 Variable 25Average Median & Range 23 Diameter& of Hole Average Range Average & Std Deviation 21 Short Run Charts You would look into why 19 these extremes happened LCL (3ϭ) Discrete 17 6 Attribute UCL Fraction Defective 4 P.O. with Errors Number Defective Range 2 Number of Defects Percent Defective 0 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 ISandR@usa.com Copyright - ISandR Services and Accelper 30
  31. 31. 6-Sigma & Lean 101Objectives of Design of Experiments (DOE) DOE is a systematic approach to determine & optimize the response between process inputs & outputs (independent and dependent variables). S & H and Delivery Time PROCESS Part Size The objective - optimize S&H of different part sizes for best delivery time. DOE experiments do not change only one variable - variables can interact Consider the interaction of temperature and wind velocity in the wind chill factor; more wind makes it feel colder and an engine requires the right amount of both gasoline and air to get the maximum performance. The experiment that changes variables one-at-a-time (OAAT) requires more experiments and cannot evaluate interactions; it is inefficient at best.ISandR@usa.com Copyright - ISandR Services and Accelper 31
  32. 32. 6-Sigma & Lean 101Two Factor DOE – Variable Influence INPUT RESULT P T Yield If you want to know the affects from two factors P1 T1 Y1 (i.e. temperature and pressure), then vary both T P1 T2 Y2 and P then record the results of the dependent P2 T1 Y3 variable (i.e. yield). P2 T2 Y4 Don’t just change one factor at a time. INPUT RESULT Introduce terms, select levels, run experiment. P T Yield 50 25 94 Change the pressure between 50 and 100 psi and 50 75 92 the temperature between 25 and 75 degrees F; record the yield results. 100 25 96 Calculate the mean yield for each factor level 100 75 88 Y@P1 = 93 Y@P2 = 92 Y@T1 = 95 Y@T2 = 90 This experiment is with 2 levels of P & T with a yield result… It could be Internal vs External S&H with big vs small parts and delivery time result 96 Plot the response. 94 From the main effects… pressure has lower 92 influence on the yield, while temperature has a 90 larger effect on the yield (more slope, more effect). 88 86 P1 P2 T1 T2ISandR@usa.com Copyright - ISandR Services and Accelper 32
  33. 33. 6-Sigma & Lean 101Two Factor DOE – Hi vs Lo Importance INPUT RESULT OK. Some of you are saying… Wait a second! P T Yield When P is changing so is T!? WHAT??????? P1 T1 Y1 EXAMPLE - Calculate the effect of P change. P1 T2 Y2 P2 T1 Y3 Yield at P1 = (Result Y1) + (Result Y2) P2 T2 Y4 Yield at P2 = (Result Y3) + (Result Y4) INPUT RESULTSUBSTITUTING VARIABLES PRODUCING THOSE YIELDS P T Yield Yield at P1 = (P1 + T1) + (P1 + T2) 50 25 94 Yield at P2 = (P2 + T1) + (P2 + T2) 50 75 92 REARRAGNING & REASSOCIATING 100 25 96 Yield at P1 = (P1 + P1 ) + (T1 + T2) 100 75 88 Yield at P2 = (P2 + P2 ) + (T2 + T2) SIMPLIFYING Yield at P1 = 2P1 + (T1 + T2) T1 & T2 contribute the This is what is important!!!! Yield at P2 = 2P2 + (T1 + T2) GRAPHICAL DEPICTION same amount to P1 or P2 2P1 or consider, the difference removes T effect 2P2 (Yield at P1) - (Yield at P2) = 2P1 - 2P2 T1+T2 T1+T2 Y@P1 Y@P2ISandR@usa.com Copyright - ISandR Services and Accelper 33
  34. 34. 6-Sigma & Lean 101More Factorial Experiment Designs – 3 & 4 Variables INPUT OUTPUT INPUT OUTPUT A B C D Result1 Result2 A B C Result1 Result2 A1 B1 C1 D1 R1 R2 A1 B1 C1 R1 R2 A1 B1 C1 D2 R1 R2 A1 B1 C2 R1 R2 A1 B1 C2 D1 R1 R2 A1 B2 C1 R1 R2 A1 B1 C2 D2 R1 R2 A1 B2 C2 R1 R2 A1 B2 C1 D1 R1 R2 A2 B1 C1 R1 R2 A1 B2 C1 D2 R1 R2 A2 B1 C2 R1 R2 A1 B2 C2 D1 R1 R2 A2 B2 C1 R1 R2 A1 B2 C2 D2 R1 R2 A2 B2 C2 R1 R2 A2 B1 C1 D1 R1 R2 Exercise for later – A2 B1 C1 D2 R1 R2 A2 B1 C2 D1 R1 R2 these are balanced experiments – equal number of each variable (A1, A2 B1 C2 D2 R1 R2 A2, B1, B2, C1, C2…), within all A2 B2 C1 D1 R1 R2 experiments that are also unique with A2 B2 C1 D2 R1 R2 respect to the arrangement of these A2 B2 C2 D1 R1 R2 variables – note: check out the colors. A2 B2 C2 D2 R1 R2ISandR@usa.com Copyright - ISandR Services and Accelper 34
  35. 35. 6-Sigma & Lean 101Lean Document the process Find the waste Make a plan to eliminate the wasteISandR@usa.com Copyright - ISandR Services and Accelper 35
  36. 36. 6-Sigma & Lean 101What Are Key Concepts of Lean? Give customers  what they want,  when they want it, for  what they want to pay, and  without more inve$tment by your company Get the big picture of the process to  Improve Quality  Eliminate Waste - ID Value Added vs. Non-Value Added Activities  Reduce Lead Time  Reduce Total CostsISandR@usa.com Copyright - ISandR Services and Accelper 36
  37. 37. 6-Sigma & Lean 101 Create a Value Stream Map – Present (Need Future State)This is the value streamitem Description 14process for theand Production 1 ID Customer, Supplier, entire 8 1plant. You can also Interval 2 Customer Requirements per Time Production & Containment Requirements 1 1make a value stream 3 4 Shipping 15 2mapDelivery a sub-process. 5 for 5 4EventuallyProcesses need to 6 Sequence of you 3lookData specific toentire 7 at the each Sequence Communication Methods 11 8processAttributes: times, Efficiency 6 9 Process to make sure 12 10changesSymbol - not shift 10 Operator did number 7waste or&problems to 11 Inventory Work in Process (WIP) 9 14 "Push" vs "Pull" Operationsanother process and 12 15 13 Other InfoonlyWorking Hours Availability 14 created a “local You will probably do this with pencil & paperoptimum”.Times 15 Cycle & Lead Example from - www.strategosinc.comISandR@usa.com Copyright - ISandR Services and Accelper 37
  38. 38. 6-Sigma & Lean 101How to Identify Waste – TIMWOOD or DOWNTIMELook for these forms of waste in the Value Stream Map TIMWOOD  DOWNTIME  Transportation  Defects  Inventory  Over-production  Motion  Waiting  Waiting  Not Utilizing Employees*  Over-processing  Transportation  Over-production  Inventory  Defects  Motion  Excess processing *skills, ideas, creativityISandR@usa.com Copyright - ISandR Services and Accelper 38
  39. 39. 6-Sigma & Lean 101How does 5S Help Eliminate Waste? Makes Waste Visible. 5 S - seiri, seiton, seiso, seiketsu and shitsuke  Sort, separate needed from unneeded items & remove the latter  Set-in-Order*/Straighten, arrange items for ease of use  Shine/Scrub, means to cleanup  Standardize/Systemize, disciplined structured routines  Sustain/Self-Discipline, create a new habit * “6 S” adds Safety (part of Set-in-Order) – make safety equipment easy to useISandR@usa.com Copyright - ISandR Services and Accelper 39
  40. 40. 6-Sigma & Lean 101Relation of What We Learned wrt Process Improvement Other PI 6-Sigma Contributions There is more LeanISandR@usa.com Copyright - ISandR Services and Accelper 40
  41. 41. 6-Sigma & Lean 101Other Process Improvement Concepts/ToolsISandR@usa.com Copyright - ISandR Services and Accelper 41
  42. 42. 6-Sigma & Lean 101What is 6-Sigma? Components of Sustained Profitable Growth Good Management Systems Business Innovation Scorecard Creating a culture 6-Sigma to sustain & create Lean new improvementsISandR@usa.com Copyright - ISandR Services and Accelper 42
  43. 43. 6-Sigma & Lean 101How to Sustain Progress with Lean & 6-SigmaKeep employees motivated, customers happy, processes running smoothly, and the company making money LEAN is NOT MEANISandR@usa.com Copyright - ISandR Services and Accelper 43
  44. 44. 6-Sigma & Lean 101What are Components of Sustained Profitable Growth Business Scorecard Customer Financials Vision & Strategy Employees Processes Management Provides Vision & Strategy so the Business Can: #1 Take Care of Customers (VOC), #2 Take Care of Employees (Training, Resources, Rewards) Employees Take Care of Processes (Process Control & Improvement) Processes Take Care of Finances (Efficient Value Added Processes = $$s) Finances Take Care of Stakeholders and Provide $$s for Growth and Improvements that add value for the customerISandR@usa.com Copyright - ISandR Services and Accelper 44
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