Part 01 of 09                Overview to Lean Six SigmaOverview to Lean Six Sigma | LASSIB | http://www.lassib.org/Release...
Copyright License                         This work is licensed under the Creative Commons Attribution-                   ...
Enterprise-wide ViewHistory of                           Value and                  Value and                 Integration ...
The origins of continuous improvement and its impact on other improvement                HISTORY OF CONTINUOUS IMPROVEMENT...
History of continuous Improvement                               WESTERN MODELS                   EASTERN MODELS           ...
W Edwards Deming – The Deming WheelSource:     http://www.aacc.org/SiteCollectionDocuments     /hall_of_fame/Deming_W_Edwa...
W Edwards Deming – Deming’s 14 principles     Deming offered fourteen key principles for management for transforming busin...
W Edwards Deming – Deming’s 14 principles     8.         Drive out fear, so that everyone may work effectively for the com...
W Edwards Deming – Seven Deadly Diseases       The Seven Deadly Diseases (also known as the "Seven Wastes"):       1.     ...
Joseph M Juran – The Pareto Principle        It was in 1941 that Juran                                                    ...
Joseph M Juran – The Management Thoery               When Juran began his career in the 1920s the principal focus in quali...
Joseph M Juran – The Quality Trilogy      QUALITY PLANNING                                                   QUALITY CONTR...
Philip Crosby          Philip Crosby started the management consulting company Philip Crosby          Association, Inc •  ...
Philip Crosby’s Quality Improvement Program       1.           Management is Committed to Quality         8.    Train supe...
Philip Crosby’s StagesUncertainty                                    Awakening            Enlightenment     Wisdom        ...
Walter Shewhart               Statistical Process Control (SPC) is an               effective method of monitoring a proce...
Walter Shewhart – Father of Statistical Process Control       Statistical Process Control is the application of statistica...
Value Engineering                                                                                       Value Engineering ...
IDEAL Model                                                                 Analyze and                             Learni...
Seven QC tools                                                                                                          Ch...
Release date: 8th Feb, 2011  Version: 1.0                                                                                 ...
Quality Circle Concept     S.No.             Particulars                             What they mean?         1            ...
Kaizen       • Japanese term that means continuous improvement, taken from words:          – ‘kai which means continuous  ...
Kaizen – Continuous improvement                                                               Do it again                 ...
Poka Yoke / Mistake Proofing - Overview                               • A technique for eliminating errors                ...
Poka Yoke / Mistake Proofing - Examples       • While closing a word document, one is asked         whether to save the fi...
5S – A Framework to create and maintain your workplace•Means SORT -                                                       ...
TPM - Total Productive Maintenance       • TPM (Total Productive Maintenance) seeks to engage all levels and         funct...
Release date: 8th Feb, 2011                                                                Autonomous Maintenance         ...
Just in Time (JIT)            • Just In Time (JIT) is a manufacturing philosophy which leads to              "Producing th...
The value of six sigma, its philosophy, history, and goals                VALUE AND FOUNDATION OF SIX SIGMA               ...
Evolution of Quality                                                                                                      ...
INDUSTRY SNIPPETSNo matter which level of Six Sigma training the respondents completed, their average salariesare higher t...
What is Lean Six Sigma?             A Set of Proven Tools and                                                  A set of pr...
Lean Six Sigma – Why is it so successful?                                                                                 ...
Historical Perspective          1979:        Motorola                                                1995: Jack           ...
Mean vs. Variation                                            Archer A                                               Arche...
Statistical Perspective                                                                      Mean = 20        (Lower Speci...
Quantitative Perspective                         99% Right (3.8 Sigma)                                   99.99966% Right (...
Quantitative Perspective                                                                                                  ...
Customers Perspective                                                      Six Sigma Starts and Ends with Customers       ...
Operational Perspective                                                                         Control                   ...
The value of lean, its philosophy, history, and goals                VALUE AND FOUNDATION OF LEAN                         ...
LEAN History                                                                             Toyota                           ...
LEAN ThinkingA principle driven, tool based philosophy that focuses on eliminating waste so that           all activities/...
LEAN Explained               A strategy, philosophy, process and leadership approach for operating in a               supe...
LEAN Explained           Earlier: Price = Cost + Profit                                                Now: Profit = Price...
Where are We going?                                                                                               Advanced...
Lean Toolkit                                               Level 1                                                   Level...
Lean Tools Overview                                               A number of Lean Tools and Techniques are available     ...
The relationship between LEAN and Six Sigma                INTEGRATION OF LEAN AND SIX SIGMA                              ...
LEAN vs. Six SigmaMethodologyStrengths                            Define                              Measure             ...
When do I use LEAN?                         Six Sigma                                                                 Acti...
LEAN vs. Six Sigma                                              LEAN                                                      ...
LEAN or Six Sigma – When to use?                                                                 Just Do it         Lean  ...
The relationship among various business processes                (design, production, purchasing, accounting, sales, etc.)...
Release date: 8th Feb, 2011  Version: 1.0Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/                     ...
Baldrige Excellence Framework                                                               Source: http://farm3.static.fl...
European Foundation for Quality – EFQM Excellence model                                                Enablers           ...
How these tools are applied to processes in all types of enterprises:                manufacturing, service, transactional...
Value Stream Mapping – A Petrol Station / Gas Station Example                                                             ...
Value Stream Mapping – Original layout                                            Existing                                ...
Value Stream mapping – proposed layout                          Existing Dock                                             ...
Case Study: Reduction in the cycle time of issuance of        corporate loans   About the Organization Serviced:   • The C...
Reduction in the Cycle time of Account Opening process  About the Organization Serviced:                                  ...
The responsibilities of executive leaders and how they affect the deployment                of six sigma in terms of provi...
LeadershipEnterprise leadership                        Organizational                   Change management                S...
Candidate Selection          Drive                                                                       Mindset          ...
01   overview of lean six sigma
01   overview of lean six sigma
01   overview of lean six sigma
01   overview of lean six sigma
01   overview of lean six sigma
01   overview of lean six sigma
01   overview of lean six sigma
01   overview of lean six sigma
01   overview of lean six sigma
01   overview of lean six sigma
01   overview of lean six sigma
01   overview of lean six sigma
01   overview of lean six sigma
01   overview of lean six sigma
01   overview of lean six sigma
01   overview of lean six sigma
01   overview of lean six sigma
01   overview of lean six sigma
01   overview of lean six sigma
01   overview of lean six sigma
01   overview of lean six sigma
01   overview of lean six sigma
01   overview of lean six sigma
01   overview of lean six sigma
01   overview of lean six sigma
01   overview of lean six sigma
01   overview of lean six sigma
01   overview of lean six sigma
01   overview of lean six sigma
01   overview of lean six sigma
01   overview of lean six sigma
01   overview of lean six sigma
01   overview of lean six sigma
01   overview of lean six sigma
01   overview of lean six sigma
01   overview of lean six sigma
01   overview of lean six sigma
01   overview of lean six sigma
01   overview of lean six sigma
01   overview of lean six sigma
01   overview of lean six sigma
01   overview of lean six sigma
01   overview of lean six sigma
01   overview of lean six sigma
01   overview of lean six sigma
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01 overview of lean six sigma

  1. 1. Part 01 of 09 Overview to Lean Six SigmaOverview to Lean Six Sigma | LASSIB | http://www.lassib.org/Release date: 8th Feb, 2011 Version: 1.0
  2. 2. Copyright License This work is licensed under the Creative Commons Attribution- ShareAlike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. LASSIB Team 2Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Release date: 8th Feb, 2011 Version: 1.0
  3. 3. Enterprise-wide ViewHistory of Value and Value and Integration of lean Business Six sigma and leancontinuous foundations of six foundations of and six sigma processes and applicationsimprovement sigma lean •The relationship systems •How these tools are•The origins of •The value of six •The value of lean, its between lean and six •The relationship among applied to processes in continuous sigma, its philosophy, history, sigma. various business all types of enterprises: improvement and its philosophy, history, an and goals. processes manufacturing, service, impact on other d goals. (design, production, pu transactional, product improvement models. rchasing, accounting, sa and process les, etc.) and the impact design, innovation, etc. these relationships can have on business systems. 3Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Release date: 8th Feb, 2011 Version: 1.0
  4. 4. The origins of continuous improvement and its impact on other improvement HISTORY OF CONTINUOUS IMPROVEMENT models 4Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Release date: 8th Feb, 2011 Version: 1.0
  5. 5. History of continuous Improvement WESTERN MODELS EASTERN MODELS • W Edwards • 7 QC Tools Deming • New 7 Tools • Joseph M Juran • Quality Circles • Phil Crosby • Kaizen • Walter Shewhart • Poka Yoke • Value Engineering •5S • IDEAL Model • TPM • Just-In Time 5Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Release date: 8th Feb, 2011 Version: 1.0
  6. 6. W Edwards Deming – The Deming WheelSource: http://www.aacc.org/SiteCollectionDocuments /hall_of_fame/Deming_W_Edwards_200.gif Source: http://upload.wikimedia.org/wikipedia/commons/7/7c/PDCA-Cycle.png 6 Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/ Release date: 8th Feb, 2011 Version: 1.0
  7. 7. W Edwards Deming – Deming’s 14 principles Deming offered fourteen key principles for management for transforming business effectiveness. The points were first presented in his book Out of the Crisis. 1. Create constancy of purpose toward improvement of product and service, with the aim to become competitive and stay in business, and to provide jobs. 2. Adopt the new philosophy. We are in a new economic age. Western management must awaken to the challenge, must learn their responsibilities, and take on leadership for change. 3. Cease dependence on inspection to achieve quality. Eliminate the need for inspection on a mass basis by building quality into the product in the first place. 4. End the practice of awarding business on the basis of price tag. Instead, minimize total cost. Move towards a single supplier for any one item, on a long-term relationship of loyalty and trust. 5. Improve constantly and forever the system of production and service, to improve quality and productivity, and thus constantly decrease cost. 6. Institute training on the job. 7. Institute leadership. The aim of supervision should be to help people and machines and gadgets to do a better job. Supervision of management is in need of overhaul, as well as supervision of production workers. 7Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Release date: 8th Feb, 2011 Version: 1.0
  8. 8. W Edwards Deming – Deming’s 14 principles 8. Drive out fear, so that everyone may work effectively for the company. 9. Break down barriers between departments. People in research, design, sales, and production must work as a team, to foresee problems of production and in use that may be encountered with the product or service. 10. Eliminate slogans, exhortations, and targets for the work force asking for zero defects and new levels of productivity. Such exhortations only create adversarial relationships, as the bulk of the causes of low quality and low productivity belong to the system and thus lie beyond the power of the work force. 11. Eliminate work standards (quotas) on the factory floor. Substitute leadership. Eliminate management by objective. Eliminate management by numbers, numerical goals. Substitute workmanship. 12. Remove barriers that rob the hourly worker of his right to pride of workmanship. The responsibility of supervisors must be changed from sheer numbers to quality. Remove barriers that rob people in management and in engineering of their right to pride of workmanship. This means, inter alia, abolishment of the annual or merit rating and of management by objective. 13. Institute a vigorous program of education and self-improvement. 14. Put everyone in the company to work to accomplish the transformation. The transformation is everyones work. "Massive training is required to instill the courage to break with tradition. Every activity and every job is a part of the process." 8Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Release date: 8th Feb, 2011 Version: 1.0
  9. 9. W Edwards Deming – Seven Deadly Diseases The Seven Deadly Diseases (also known as the "Seven Wastes"): 1. Lack of constancy of purpose 2. Emphasis on short-term profits 3. Evaluation by performance, merit rating, or annual review of performance 4. Mobility of management 5. Running a company on visible figures alone 6. Excessive medical costs 7. Excessive costs of warranty, fueled by lawyers who work for contingency fees A Lesser Category of Obstacles: Neglecting long-range planning Relying on technology to solve problems • Seeking examples to follow rather than developing solutions • Excuses, such as "Our problems are different” • • 9Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Release date: 8th Feb, 2011 Version: 1.0
  10. 10. Joseph M Juran – The Pareto Principle It was in 1941 that Juran The Pareto principle of Time vs. Results discovered the work of Vilfredo Pareto• 20% of Juran expanded the Pareto results principle applying it to quality issues (for• 80% of time example, 80% of a problem expended is caused by 20% of the Source: http://img.freebase.com/api/trans/imag causes) e_thumb/en/joseph_m_juran?pad=1&ma 80% of xheight=110&mode=fillcropmid&maxwi results dth=110 This is also known as "the vital few and the trivial many". In later years Juran• 20% of time has preferred "the vital few and the useful many" to signal that the remaining 80% of the causes should not be totally ignored 10Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Release date: 8th Feb, 2011 Version: 1.0
  11. 11. Joseph M Juran – The Management Thoery When Juran began his career in the 1920s the principal focus in quality management was on the quality of the end, or finished, product • The tools then used were from the Bell system of acceptance sampling, inspection plans, and control charts. The ideas of Frederick Winslow Taylor dominated • Juran is widely credited for adding the human dimension to quality management. He pushed for the education and training of managers • For Juran, human relations problems were the ones to isolate. Resistance to change—or, in his terms, cultural resistance—was the root cause of quality issues. Juran credits Margaret Meads book Cultural Patterns and Technical Change for illuminating the core problem in reforming business quality. • He wrote Managerial Breakthrough, which was published in 1964, outlining the issue Jurans vision of quality management extended well outside the walls of the factory to encompass non- manufacturing processes, especially those that might be thought of as service related. For example, in an interview published in 1997 he observed: • “The key issues facing managers in sales are no different than those faced by managers in other disciplines. Sales managers say they face problems such as "It takes us too long or we need to reduce the error rate." They want to know, "How do customers perceive us?" These issues are no different than those facing managers trying to improve in other fields. The systematic approaches to improvement are identical… There should be no reason our familiar principles of quality and process engineering would not work in the sales process…” 11Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Release date: 8th Feb, 2011 Version: 1.0
  12. 12. Joseph M Juran – The Quality Trilogy QUALITY PLANNING QUALITY CONTROL (DURING OPERATIONS) Sporadic zone 40 - (as a % of operating budget) Cost of poor quality Original zone of quality control 20 - Chronic waste (an opportunity Savings for improvement) New zone of quality control QUALITY IMPROVEMENT 0 Time Lessons learnt 12Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Release date: 8th Feb, 2011 Version: 1.0
  13. 13. Philip Crosby Philip Crosby started the management consulting company Philip Crosby Association, Inc • This consulting group provided educational courses in quality management both at their headquarters in Winter Park, Florida, and at eight foreign locations. In 1979 Crosby published his first business book, • Quality Is Free. This book became popular at the time because of the crisis in North American quality During the late 1970s and into the 1980s North American manufacturers were losing market share to Japanese products largely due to the superiority of quality of the Japanese products. • Crosbys response to the quality crisis was the principle of "doing it right the first time" (DIRFT). He would also include four major principles: • – the definition of quality is conformance to requirements – the system of quality is prevention – the performance standard is zero defects – the measurement of quality is the price of nonconformance Source: http://www.wppl.org/wphistory/phili pcrosby/PhilipCrosby.jpg 13Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Release date: 8th Feb, 2011 Version: 1.0
  14. 14. Philip Crosby’s Quality Improvement Program 1. Management is Committed to Quality 8. Train supervisors in quality 2. Create Quality Improvement Teams improvement 3. Measure processes to determine 9. Hold zero defects days current and potential quality issues 10. Encourage employees to create their 4. Calculate Cost of (poor) Quality own quality improvement goals 5. Raise Quality Awareness of all 11. Encourage employee communication Employees with management about obstacles to 6. Take Actions to Correct Quality quality (Error-Cause Removal) Issues 12. Recognise participants’ effort 7. Monitor progress of quality 13. Create quality councils improvement – establish a zero 14. Do it all over again – quality defects committee improvement does not end 14Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Release date: 8th Feb, 2011 Version: 1.0
  15. 15. Philip Crosby’s StagesUncertainty Awakening Enlightenment Wisdom Certainty • COPQ : 20% • COPQ : 18% • COPQ : 12% • COPQ : 8% • COPQ : 2.5% • Blame QD • QM begins • CA • DP is routine • QI is normal Crosbys name is best known in relation to concepts of “Do it Right, First time” and “Zero Defect”. COPQ - Cost of Poor Quality Quality is defined as conformance to requirements, QD – Quality Deployment not as “goodness” or “elegance”. QM –Quality Management CA – Cost Acceptance DP – Defect Prevention QI – Quality Improvement 15Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Release date: 8th Feb, 2011 Version: 1.0
  16. 16. Walter Shewhart Statistical Process Control (SPC) is an effective method of monitoring a process through the use of control charts. • Control charts enable the use of objective criteria for distinguishing background variation from events of significance based • on statistical techniques. Much of its power lies in the ability to monitor both process center and its variation about that center. By collecting data from samples at various points within the process, variations in the Source: process that may affect the quality of the end http://www.firstmetre.co.uk/image.php? • product or service can be detected and w=250&h=334&f=/UserFiles/Image/Oc tober+Images/Shewhart-c1926.jpg corrected, thus reducing waste as well as the likelihood that problems will be passed on to the customer. Because of its emphasis on early detection and prevention of problems, SPC has a distinct advantage over quality • methods, such as inspection, that apply resources to detecting and correcting problems in the end product or service. 16Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Release date: 8th Feb, 2011 Version: 1.0
  17. 17. Walter Shewhart – Father of Statistical Process Control Statistical Process Control is the application of statistical techniques in the Control of processes Define Problem Implement Define Solution Process Analyze List Possible Data Reasons Collect Data 17Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Release date: 8th Feb, 2011 Version: 1.0
  18. 18. Value Engineering Value Engineering objective: To develop the best solution to meet the project objective Step 1: Information gathering Define project objective Develop terms of reference Identify assumptions and facts Gather information (physical parameters, cost, schedule) Step 2:Function analysis Analyze functions required to deliver project objectives Describe each identified functions Classify functions: Basic functions Step 3:Value analysis Creatively identify options and alternatives to perform functions Research options Identify cost and cost benefits Idea roots identified for Identify risks (barriers and uncertainties) further analysis Alternative solutions to perform functions Step 4:Option evaluation Evaluate idea roots developed in Step 3 and identify those for further analysis Compare solutions and screen out unfeasible / least valuable alternatives Identify solutions for further analysis (iterate) Screen out unsuitable options Step 5:Judgment Use judgment to identify the best value solution 18Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Release date: 8th Feb, 2011 Version: 1.0
  19. 19. IDEAL Model Analyze and Learning validate Implement Propose future solution actions Acting Build Set Stimulus for change Charter Refine solution infrastructure sponsorship Content Initiation Characterize Pilot / test solution desired & current state Develop Create solutions recommendations Diagnosis Plan actions Set priorities Develop approach Establishing 19Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Release date: 8th Feb, 2011 Version: 1.0
  20. 20. Seven QC tools Check sheets Process behavior / Control charts Pareto diagram Graphs Fish bone diagram Histograms Scatter diagramsSource: http://media.texample.net/tikz/examples/PNG/pie-chart.png Source: http://farm3.static.flickr.com/2671/4235318918_15e2a8feaf.jpg Source: http://upload.wikimedia.org/wikipedia/commons/c/c7/Histograma_pisuaktom.JPG 20 Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/ Release date: 8th Feb, 2011 Version: 1.0
  21. 21. Release date: 8th Feb, 2011 Version: 1.0 Matrix diagramsOverview to Lean Six Sigma | LASSIB | http://www.lassib.org/ Arrow diagrams New Seven QC Tools Matrix data analysis Affinity Diagrams program chart Process decision Relationship Diagrams Tree Diagrams Source: Affinity Diagram: http://farm4.static.flickr.com/3136/2583400109_7c57ff718c_o.png Relationship Diagram: http://upload.wikimedia.org/wikipedia/commons/b/b7/Typical_dependency_relations_between_AIS_services.JPG Tree Diagram: http://farm1.static.flickr.com/14/15276524_45307f082d.jpg Process decision program chart: http://1.bp.blogspot.com/_5ieXw28ZUpg/SULVbS2LvxI/AAAAAAAAAwI/SPYcwibZkfE/s1600-h/obap2.PNG Matrix data analysis: http://upload.wikimedia.org/wikipedia/commons/7/76/Folio_Plot_BCG_Matrix_Example.png21 Matrix diagrams: http://farm3.static.flickr.com/2182/2040911590_f6f946e72a_o.png Arrow diagrams: http://upload.wikimedia.org/wikipedia/commons/a/af/Linalg_map_change_basis_3.png
  22. 22. Quality Circle Concept S.No. Particulars What they mean? 1 Concept The main objective of Quality Circles is “self” and mutual development, cohesive team work and to be engaged in continuous improvement activities, thus improving their quality of work life 2 Identification of problem QC Members with the help of Round Robin Method, try to identify their own day to day work related problems 3 Problem selection Identified problems are segregated into three categories based on difficulty of their solution 4 Meetings QCs have periodic meetings to discuss, analyze and find solutions to the problems on a pre-fixed schedule 5 Various problem solving steps QCs follow a 12 step methodology, starting from identification of problems to solution, implementation, follow up and review. 6 Approval of project Project has to be approved by the Steering Committee or the executives nominated by the Steering Committee. 7 Gains The aim of QC is to “develop people”. In other words, self and mutual development through QC activities. Hence, the focus is not on gains in terms of money 22Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Release date: 8th Feb, 2011 Version: 1.0
  23. 23. Kaizen • Japanese term that means continuous improvement, taken from words: – ‘kai which means continuous – zen which means improvement • Kaizen, or rapid improvement processes, are the building block of all Lean production methods. Kaizen philosophy implies that all, incremental changes routinely applied and sustained over a long period result in significant improvements • The kaizen strategy aims to involve workers from multiple functions and levels in the organization in working together to address a problem or improve a particular process • The team uses analytical techniques, such as Value Stream Mapping, to quickly identify opportunities to eliminate waste in a targeted process. The team works to rapidly implement chosen improvements 23Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Release date: 8th Feb, 2011 Version: 1.0
  24. 24. Kaizen – Continuous improvement Do it again Document Celebrate reality Identify Start Standardize here waste Measure Eliminate results waste Verify Reality For counter changes check measures Make changes 24Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Release date: 8th Feb, 2011 Version: 1.0
  25. 25. Poka Yoke / Mistake Proofing - Overview • A technique for eliminating errors • Making it impossible to make mistakes Elimination Best Eliminate the possibility of error Replacement – Use the highest level Substitute a more reliable process possible for the Facilitation – Better application. Make work simpler to perform Detection – Detect the error at the defect source Good Mitigation – – Minimize the effectIt is good to do it right the first time; it is even better to make it impossible to do it wrong the first time. 25Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Release date: 8th Feb, 2011 Version: 1.0
  26. 26. Poka Yoke / Mistake Proofing - Examples • While closing a word document, one is asked whether to save the file or not • Spelling check option in a word document Source: http://upload.wikimedia.org/wikipedia/commons/0/04/DIN_lang_-_Letter_Window.JPG • In three pin plugs / socket, the earth pin / socket is larger in length and diameter so that one doesn’t mistakenly insert it otherwise • The window in a envelop ensures that right content reaches the right person • The fuse box in a house is meant to prevent fire in electrical systems 26Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Release date: 8th Feb, 2011 Version: 1.0
  27. 27. 5S – A Framework to create and maintain your workplace•Means SORT - SEITON •Means SHINE - SEIKETSU •Means SUSTAIN – Self Organization Cleanliness discipline•Distinguish between •Means SET IN ORDER •Cleaning and looking •Means STANDARDIZE •Stick to the what is and is not - Orderliness for ways to keep it – Adherence rules, scrupulously needed •A place for everything clean •Clearly define tasks and everything in its and procedures SEIRI SEISO SHITSUKE place Implementing the 5S is often the first step in Lean Transformation 27Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Release date: 8th Feb, 2011 Version: 1.0
  28. 28. TPM - Total Productive Maintenance • TPM (Total Productive Maintenance) seeks to engage all levels and functions in an organization in maximizing the overall effectiveness of the process • TPMs goal is the total elimination of all losses • TPM focuses on preventing: – Breakdowns (preventive maintenance) – “Mistake-proofing" the equipment (or poka-yoke) to prevent breakdowns – Make maintenance easier (corrective maintenance) – Designing and installing equipment that needs little or no maintenance (maintenance prevention) – Quickly repairing equipment after breakdowns occur (breakdown maintenance). 28Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Release date: 8th Feb, 2011 Version: 1.0
  29. 29. Release date: 8th Feb, 2011 Autonomous Maintenance Version: 1.0Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/ Focus Improvement Planned Maintenance Quality Maintenance TPM - Total Productive Maintenance 8 Pillars of TPM Initial Flow Control Education & Training Safety, Health &Environment TPM in office29
  30. 30. Just in Time (JIT) • Just In Time (JIT) is a manufacturing philosophy which leads to "Producing the necessary units, in the necessary quantities at the necessary time with the required quality” • It is an approach to achieving excellence in the reduction or total elimination of waste (Non-Value Added Activities) • Examples of waste according to JIT: – Overproduction – Unneeded Inventory – Defective Products – Transport and Waiting Time 30Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Release date: 8th Feb, 2011 Version: 1.0
  31. 31. The value of six sigma, its philosophy, history, and goals VALUE AND FOUNDATION OF SIX SIGMA 31Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Release date: 8th Feb, 2011 Version: 1.0
  32. 32. Evolution of Quality LEAN ENTERPRISE ROBUST PROCESS BUSINESS INTELLIGENCE DESIGN DOE BUSINESS RESULTS ECONOMETRICS BUSINESS PROCESS MANAGEMENT DMAIC RCM DFSS TPM TEAM BUILDING 5S FMEA SPC CONCURRENT ENGINEERING ZD QFD VE TQM DF(X) KAIZEN CQI PROBLEM SOLVING STRATEGY 7 QCT PDCA 32Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Release date: 8th Feb, 2011 Version: 1.0
  33. 33. INDUSTRY SNIPPETSNo matter which level of Six Sigma training the respondents completed, their average salariesare higher than the respondents who didnt complete any Six Sigma training.’During the past 10 years Six Sigma has become one of the most widely practiced processimprovement methodologies in both service and manufacturing industries.’GE produces annual benefits of over $2.5 billion across the organization from Six Sigma.’The savings as a percentage of revenue for a company can vary from 1.2% to 4.5%.’Lean Six Sigma techniques implemented throughout the Army continue to prove successful, andleaders anticipate reaching a $2 billion-savings mark this year.’ 33Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Release date: 8th Feb, 2011 Version: 1.0
  34. 34. What is Lean Six Sigma? A Set of Proven Tools and A set of proven tools and technique Techniques used to achieve used to solve business problems Business growth and goals Control Define Improve A framework that builds A mechanics to develop Measure a Customer centric approach leadership talent within with a focus on delivering an organization business results Analyze 34Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Release date: 8th Feb, 2011 Version: 1.0
  35. 35. Lean Six Sigma – Why is it so successful? Highest Leaders Lean and Six Sigma (6σ) Skill Medium Managers Larger % of Skill Lower employees in need of skills to Associates Skill deliver customer value and Business Value 35Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Release date: 8th Feb, 2011 Version: 1.0
  36. 36. Historical Perspective 1979: Motorola 1995: Jack 2000: GE Starts Six Welch Saves ~$2 Sigma Initiates Six Billion Initiative Sigma in GE Annually 1986: 1998: Allied Motorola Signal Saves Saves ~$16 ~$1.2 Billion Billion 36Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Release date: 8th Feb, 2011 Version: 1.0
  37. 37. Mean vs. Variation Archer A Archer B Mean of Archer A is zero and that of Archer B is significantly higher. But which one would you choose? One that had inconsistent performance (Archer A, high variation) or one that was very consistent (Archer B, very low variation) 37Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Release date: 8th Feb, 2011 Version: 1.0
  38. 38. Statistical Perspective Mean = 20 (Lower Specification) σ = 0.5 (Upper Specification) σ σ A defect is any value that falls outside Customer Specifications 23 17 20 38Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Release date: 8th Feb, 2011 Version: 1.0
  39. 39. Quantitative Perspective 99% Right (3.8 Sigma) 99.99966% Right (6 Sigma) No electricity for 7 hours per month No electricity for 1 hour every 34 years 5,000 incorrect operations per week 1.7 incorrect operations per week 20,000 wrong prescriptions per year 68 wrong prescriptions per year Defects per Million σ Opportunities 1 697,672.15 2 308,770.21 3 66,810.63 4 6,209.70 5 232.67 6 3.40 39Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Release date: 8th Feb, 2011 Version: 1.0
  40. 40. Quantitative Perspective Airline fatality rate 0.52 PPM Sigma (σ) World Class, Six Sigma 3.4 PPM 1:1,000,000 Five Sigma 233 PPM Motorola 1990 Four Sigma 6,209 PPM Hospital fatality rate due to mistakes Restaurant bills 1:100 Doctor prescriptions Payroll processing Airline baggage handling Three Sigma 66,810 PPM Two Sigma 308,770 PPM 40Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Release date: 8th Feb, 2011 Version: 1.0
  41. 41. Customers Perspective Six Sigma Starts and Ends with Customers What is my customers view of the process? Are my What do the customers customers expect referring and out of the buying again? process? CUSTOMERS How do my Is my customer customers satisfaction measure the increasing? process? What is my customers definition of a defect? 41Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Release date: 8th Feb, 2011 Version: 1.0
  42. 42. Operational Perspective Control Define Improve Measure Analyze 42Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Release date: 8th Feb, 2011 Version: 1.0
  43. 43. The value of lean, its philosophy, history, and goals VALUE AND FOUNDATION OF LEAN 43Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Release date: 8th Feb, 2011 Version: 1.0
  44. 44. LEAN History Toyota Production System People People • Single Piece Flow • Automation Just-in-Time • Pull Production • Built-In Quality People Jidoka • TAKT Time Production • Stopping at Abnormalities Heijunka • Level Loading • Sequencing • Stability Some Key Lean Concepts developed at Toyota 44Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Release date: 8th Feb, 2011 Version: 1.0
  45. 45. LEAN ThinkingA principle driven, tool based philosophy that focuses on eliminating waste so that all activities/steps add value from the customers perspective. Lean Thinking is all about continuous waste elimination ! Imagine Office Processes with: • Higher Customer Satisfaction • Shorter Lead Time • Higher Flexibility • Higher Quality • Lower Costs • Higher Employee Satisfaction 45Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Release date: 8th Feb, 2011 Version: 1.0
  46. 46. LEAN Explained A strategy, philosophy, process and leadership approach for operating in a superior way. Results include: • – Reduced cycle times (product development and production) – Increased quality – Reduced costs and inventory – Increased capacity potential – Improved customer service – High levels of worker involvement, ownership and commitment – Improved financial returns Lean concepts apply across all processes and industries 46Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Release date: 8th Feb, 2011 Version: 1.0
  47. 47. LEAN Explained Earlier: Price = Cost + Profit Now: Profit = Price - Cost Increase Profit by Price increase Increase Profit by cost reduction Price to sell 1.5 1.5 Some profit Bigger profit Bigger profit Price to sell 1 1 Cost of production Some profit 0.5 0.5 Cost of production 0 0 47Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Release date: 8th Feb, 2011 Version: 1.0
  48. 48. Where are We going? Advanced tools Tool • Creating Continuous Flow • Pull production Basic tools Challenge • More waste reduction Tool • Real continuous flow • Value Stream • Flexible workforce Mapping, other lean • Less variance tools, etc. • Less waste Old situation Results • Reduction of waste Issues • Learned to ‘see the flow’ • Inventory • Couple of improvements • Waiting • Defects Remaining Issues •… • No real continuous flow • Still significant amount of No flow in the value waste. stream. Processes full of waste 48Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Release date: 8th Feb, 2011 Version: 1.0
  49. 49. Lean Toolkit Level 1 Level 2 Reduce Variability, Control the Process Expose the Waste • Value Stream Mapping • Standardized Work • Intro to Continuous Flow • 5S • Intro to Pull Production • MUDATool Sophistication • Mistake proofing • Intro to Value Stream Mapping • Visual Management Time / Cultural Maturity Applying the right tools at the right stage 49 Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/ Release date: 8th Feb, 2011 Version: 1.0
  50. 50. Lean Tools Overview A number of Lean Tools and Techniques are available Bring Organization & 5S Framework Cleanliness to work area Understand Value Value Stream Mapping Tools and Techniques Implement pull-based flow Kanban, Just-in TimeAction Reconfigure work areas U-Shaped Cells Institute continuous improvement philosophy Kaizen Events Appropriate Tools and Techniques are to be used depending on the need 50 Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/ Release date: 8th Feb, 2011 Version: 1.0
  51. 51. The relationship between LEAN and Six Sigma INTEGRATION OF LEAN AND SIX SIGMA 51Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Release date: 8th Feb, 2011 Version: 1.0
  52. 52. LEAN vs. Six SigmaMethodologyStrengths Define Measure Analyze Improve Control Lean Six Sigma Six Sigma • VOC is Powerful • Confirms Data • Data Driven • Few Tools to • Few Tools or Quality Analysis Create Change in Direction Critical X’s • Value Stream • Standard Work • Observation and • Many Tools for • Communicative Lean Mapping . . . & Target Intuition Based Driving Change • Centered on Boundary less & Sheets . . . Analysis . . . Stable, Repeatable • Mixed Model Multi-Generational Assumes Data PQ, PR, TAKT Process Plan, Kan Ban, Visual is Good Time Management • Automation Apply Any Tool from your Quality Tool Box 52Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Release date: 8th Feb, 2011 Version: 1.0
  53. 53. When do I use LEAN? Six Sigma Action Hybrid Project WorkoutEffort Effort Effort Time Time Time Average ~ 4 Months Average ~ 1½ Months Average ~ 4 Months Lean For Quick Fixes….Six Sigma For Complex Processes !! 53Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Release date: 8th Feb, 2011 Version: 1.0
  54. 54. LEAN vs. Six Sigma LEAN Simple / Wing Spans breadth Spans Complex and Six Sigma X X depth to Wing focusedLean: Strengthens journey to Excellence Lean Lean Six Sigma Six Sigma/Lean Helps identify steps that Identifies problems in the Improves the capability of steps Improving the capability can do not add value and flow that do add value eliminate additional steps provides tools to eliminate them Lean success Six Sigma •Energizing •Team work, factors / Values •Empowering •Boundary less / Open mindset Impact •Passion for improvement •Intuition / Action •Customer focus 54 Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/ Release date: 8th Feb, 2011 Version: 1.0
  55. 55. LEAN or Six Sigma – When to use? Just Do it Lean Preference I Preference III Ask an Expert Six Sigma Preference II Preference IV 55Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Release date: 8th Feb, 2011 Version: 1.0
  56. 56. The relationship among various business processes (design, production, purchasing, accounting, sales, etc.) and the impact these relationships can have on business systems BUSINESS PROCESSES AND SYSTEMS 56Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Release date: 8th Feb, 2011 Version: 1.0
  57. 57. Release date: 8th Feb, 2011 Version: 1.0Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/ KINDUZ Business Excellence Source: http://www.kinduz.com/index.php/research/kinduz-excellence-framework57 For more information, kindly visit: http://www.kinduz.com
  58. 58. Baldrige Excellence Framework Source: http://farm3.static.flickr.com/2082/2531423852_895e11268d.jpg 58Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Release date: 8th Feb, 2011 Version: 1.0
  59. 59. European Foundation for Quality – EFQM Excellence model Enablers Results People People results Key Performance Results Leadership Policy & Customer Processes Strategy results Partnerships Society results & resources Innovation and Learning 59Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Release date: 8th Feb, 2011 Version: 1.0
  60. 60. How these tools are applied to processes in all types of enterprises: manufacturing, service, transactional, product and process design, innovation, etc. SIX SIGMA AND LEAN APPLICATIONS 60Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Release date: 8th Feb, 2011 Version: 1.0
  61. 61. Value Stream Mapping – A Petrol Station / Gas Station Example Helpers / Customers Enters Customer Starts Customer Fills Petrol Station Vehicle Tank Customer Carefully Non value added service Customer Finds Customer Stops Exits, avoiding Pump with Vehicle other Standing smallest Cue Traffic Value added service Customer Waits in Customer Makes Customer Exits a Cue Payment Goal is to eliminate or make non-value added activities more efficient 61Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Release date: 8th Feb, 2011 Version: 1.0
  62. 62. Value Stream Mapping – Original layout Existing Dock Lay down Material Lay down areas: • Deliver to receiving dock area #1 Receiving • Queue for receipt inspection Lay down area #2 Stock • Waiting to move to inspection Lay down room • Delivered to inspection area #5 Receiving Storage • Queue for inspection Lay down area #4 • Waiting to move to stock room • Queue for put away Lay down area #3 Lay down area #7 Lay down area #6 62Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Release date: 8th Feb, 2011 Version: 1.0
  63. 63. Value Stream mapping – proposed layout Existing Dock New Deck Roller belt Receiving Stock room Bulk incoming material New Inspection (hold for inspection) 63Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Release date: 8th Feb, 2011 Version: 1.0
  64. 64. Case Study: Reduction in the cycle time of issuance of corporate loans About the Organization Serviced: • The Company Serviced is one of the Largest Banking Organizations in the Kingdom of Saudi Arabia with annual Issue: Getting buy-in for validating data from all the turnover of 3 Billion $ managers was a big challenge as it would directly impact • The Bank is catering to the needs of Individuals, Corporate’s their role & reputation of that particular department and Trade Finance activities across the country with extensive branch network Resolution: The key was to get the Buy – in from the Senior most manager and ask him to communicate to the whole team about the importance and gravity of issue. This Objective of the Initiative / Business Case: involved extensive people management and Perception • The process of issuing/ rejecting Corporate Loan application Management process was consuming an average of 73 days considering all the regions and types of credit applications which was leading to customer dissatisfaction and loss of revenue Issue: Getting the required data from various systems being used and generating reports on a weekly basis and Results Delivered: validating the reports of each department with the • Our Consultant helped reduce the average time consumed respective Manger from 73 days to 27days considering all regions and types of credit applications processed involving 14 Departments in 6 Resolution: This was achieved with couple of software months analysts collating the data with the Black belt, then the • Helped streamline various sub processes to be aligned with reports were circulated to the respective managers for the core process them to audit and get their acceptance after which they • Held extensive training/ mentoring for all the team members were circulated to the EVP to achieve the desired results 64Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Release date: 8th Feb, 2011 Version: 1.0
  65. 65. Reduction in the Cycle time of Account Opening process About the Organization Serviced: Issue: Getting buy-in for changing the systems and work • The Company Serviced is one of the Largest Banking scheduling from batch processing to lean processing to Organizations in the Kingdom of Saudi Arabia with annual optimize load balancing across the back office turnover of 3 Billion $ • The Bank is catering to the needs of Individuals, Corporate’s and Trade Finance activities across the country with Resolution: The issue was solved by conducting a pilot with extensive branch network the authorization of the concerned manager and validating the results after which Lean cells were created as an intermediate step to reduce the cycle time until new Objective of the Initiative / Business Case: systems are stabilized • The process of opening an account was consuming an average of 7 days for the customer signature to be uploaded Issue: Making a business case to change the systems in sync into the master database only after which customer will be with the information architecture of the bank which would able to use all the services. This was leading to customer result in investment s and results in significant dissatisfaction productivity improvement Resolution: The process was taken up with the IT team and a Results Delivered: strong • Our Consultant helped reduce the average time consumed from 7 days to 1 day considering applications from all regions • Helped optimize various back office processes to be aligned with the core process • Held extensive training/ mentoring for all the team members to achieve the desired results 65Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Release date: 8th Feb, 2011 Version: 1.0
  66. 66. The responsibilities of executive leaders and how they affect the deployment of six sigma in terms of providing resources, managing change, communicating ideas, etc. ENTERPRISE LEADERSHIP RESPONSIBILITIES 66Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Release date: 8th Feb, 2011 Version: 1.0
  67. 67. LeadershipEnterprise leadership Organizational Change management Six sigma projects and Six sigma roles andresponsibilities roadblocks •Use of various techniques for kaizen events responsibilities•The responsibilities of •The impact an organization’s facilitating and managing •How projects and kaizen •Describe the roles and executive leaders and how culture and inherent organizational change. events are selected, when to responsibilities of six sigma they affect the deployment of structure can have on the use six sigma instead of other participants: black belt, six sigma in terms of success of six sigma, and how problem-solving master black belt, green belt, providing resources, deployment failure can result approaches, and the champion, process owners, managing change, from the lack of importance of aligning their and project sponsors. communicating ideas, etc. resources, management objectives with support, etc.; identify and organizational goals. apply various techniques to overcome these barriers. 67Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Release date: 8th Feb, 2011 Version: 1.0
  68. 68. Candidate Selection Drive Mindset Willing to APPLY what was covered in class Open and flexible mindset • • Drive the solution For both class and project work wants to • • Is able to have a focused schedule and keep stay focused on the process and not on • • project on time blaming people! “Blame the process not • Resolves barriers or gets help resolving the people” barriers quickly • Does not let ‘artificial’ organizational boundaries get in the way • • Communication • Readiness • High team involvement, collaborative • Open to constructive criticism • Able to communicate progress frequently • Able to ask the fundamental or tough questions • Able to lead a group effort (flip charts & • Candidate prepared for class and post-its) completes tools per schedule • Mentoring time taken seriously • Basic MS Office Computer Skills • Basic statistics knowledge 68Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Release date: 8th Feb, 2011 Version: 1.0
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