Introduction to Lean 6 sigma

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----- a french version is available upon request ----- This is a short - and I hope Zen ! -presentation (15 mn should be enough) aiming to make Executives, Board of directors, employees aware of what Lean Six Sigma is and the benefit they could have implementing it.

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Introduction to Lean 6 sigma

  1. 1. Athena ConsultingA short introduction to Lean 6 Sigma philosophy and methodology Designed for Board members and Executives for general knowledge purpose D.LAPERE - December 2012
  2. 2. Several methods aiming to improve processes continuously TPS Toyota Problem Solving TQM Lean Total Quality Manufacturing Management Toyota Continuous Improvement methods Agile Six Sigma Manufacturing Motorola, GE … AthenaConsulting -2-
  3. 3. Why combining Six Sigma and Lean Manufacturing? These are complementary methods and, moreover, both are customer focused AthenaConsulting -3-
  4. 4. Sigma? Firstly used in statistics … Statistics / probability: How much deviation from the average? … Then transposed to industry σ Sigma Industry / Quality: How far a given process deviates from perfection? But what is perfection ? AthenaConsulting -4-
  5. 5. 6 Sigma? As perfect as pratically possible Defects per Million Opportunities Logarithmic Scale 6σ 1 000 000 308 537,0 100 000 66 807,0 6 Sigma 10 000 1 000 621,0 233,0 100 10 3,4 1 a a a a a gm gm gm gm gm Si Si Si Si Si 2 3 4 5 3.4 defects per 1.000.000 opportunities is considered as acceptable 6 and not far from perfection in real life that is to say a 99.9997% quality level AthenaConsulting -5-
  6. 6. Why 6σ and not 5 or 4σ? Example 4σ: Every hour the postal service would lose 20.000 pieces of mail 6σ: Every hour the postal service would lose 7 pieces of mail AthenaConsulting -6-
  7. 7. Why 6σ and not 4σ? Example 4σ  2 missed landing daily in main airports! 6σ  2 missed landing every 5 years AthenaConsulting -7-
  8. 8. Why 6σ and not 4σ? Example4σ  Poisonous water during 15 min every day6σ  1 min undrinkable water over several months AthenaConsulting -8-
  9. 9. Measure performance level of a process  Problem solving approach 6σ 6 Sigma  Data driven method  Continuous improvement Improve the process then benchmark performance indicator AthenaConsulting -9-
  10. 10. DMAIC Define processes to be improved and set up the related team and goals Measure main key performance indicators 6σ Analyse defects and related reasons (Root-cause analysis) Improve by tackling all the issues Control, monitor and check that goals are achieved AthenaConsulting But what defines a process? -10-
  11. 11. What is a process? A set of tasks aiming to a common goal Procedures Equipment Material Energy People Requirements Products Ideas & Work activities Time Services  Composed of tasks linked together  Triggered by an event  Possibly impacted by external factors  Involving actors contributing to these tasks  Providing a result meeting a customer expectations AthenaConsulting -11-
  12. 12. Outcome only matters X Process Y Outcome Department performance Y = f(X) Department performance Department performance Department performance Department performance Customer Process performance Process performance What matters for the customer is not departments performance but the overall process performance! AthenaConsulting -12-
  13. 13. 6σ phases (DMAIC) Define the project goals, appoint the Define team and agree on customer (internal and external) deliverables Measure and check the current process Measure performances to determine the baseline Analyze defects, through a root-cause Analyze analysis, in order to determine the very reasons of these defects AthenaConsulting -13-
  14. 14. 6σ phases (DMAIC) Improve Improve the process by eliminating defects Control Control future process performance AthenaConsulting -14-
  15. 15. Some of 6σ keywords  Tools and methods  Project management  Business Process Mapping  Design of Experiment  Logical flow chart  Chain of value  XY Matrix  Failure mode effect analysis  Players  Executive leadership  Champions  Master Black Belts  Black Belts  Green Belts  Yellow Belts AthenaConsulting -15-
  16. 16. Lean management AthenaConsulting -16-
  17. 17. Identify flow of value and eliminate waste AthenaConsulting -17-
  18. 18. Figure out the flow of value-added activities, i.e. activities a customer would be willing to pay for AthenaConsulting -18-
  19. 19. Find out valueless activities, i.e. those that does not add any value in the eyes of the customer AthenaConsulting -19-
  20. 20. 7 types of waste to be eliminated can be identified (7W’s): Motion People Waiting time Overproduction Process Processing time Defects Product Inspection Transportation AthenaConsulting -20-
  21. 21. Lean focuses on flow flows and intends to stretch the flow towards Lean focuses on the customer in order to make it as lean, smooth and seamless as possible AthenaConsulting -21-
  22. 22. Lean + 6σ A combination of both Lean and Six Sigma aiming to: Improve quality Eliminate waste Reduce lead time Reduce total cost AthenaConsulting -22-
  23. 23. Lean Six SigmaLean speeds up fulfilment by eliminating waste sources, and thus, improves efficiencySix Sigma focuses on deviations management, solving defects and, as a result, reduces costs and enhances qualityProfitability, quality, competitive advantage AthenaConsulting -23-
  24. 24. Athena ConsultingThanks for your attention

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