This presentation on What is Lean Six Sigma? explains the need of Lean Six Sigma, and how it can be implemented along with its benefits.
Areas Covered:
1. What is Lean Six Sigma?
2. Why Lean Six Sigma?
3. Understanding Lean & Six Sigma
4. What are Wastes/ Downtime?
4. DMAIC vs DMADV
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5. 6π 6π
Reduces waste through
simplification of a process
Reduces defects by
addressing issues quickly
Six Sigma is accelerated by LEAN
Problem Solving + Improving Processes
delivers greater results
LEAN SIX SIGMA LEAN SIX SIGMA
What is Lean Six Sigma?
6. Basics of Lean Six Sigma
Lean accelerates Six Sigma
β Increased revenue, reduced costs, and improved
collaboration
β Lean and Six Sigma complement each other
β Lean accelerates Six Sigma
Basics
β Comprehensive tool set to increase the speed and
effectiveness of any process
8. Why Lean Six Sigma?
Helping the organization make more
money by improving customer value
and efficiency
Focusing on improving quality by
helping the organization to produce
products or services better, faster and
cheaper
11. What is Lean?
Activity Process Value Added
β Activity must transform the product/service
β Customer must be willing to pay for it
β It must be done correctly first time
12. Reduces process cycle time
Eliminates the chance
of defect generation
Improves product or Service
delivery time
Reduces inventory levels
LEAN helps in:
Optimize resources towards key
improvements among others
15. What is Six Sigma?
SIX SIGMA helps in:
β Reduces the amount of defective products or services
provided
β Results in increased revenue
β Results in greater customer satisfaction
Set of techniques and tools for Process Improvement
16. Here is an example to show how it works
Step-1 Step-2 Step-4 Step-1 Step-2
Step-3
Before After
20. Six Sigma Table with various
levels of Six Sigma.
Sigma Level DPMO Long Term Yield
2 308,537 69.15%
3 66,807 93.32%
4 6,210 99.38%
5 233 99.98%
6 3.4 99.99966%
21. How Six Sigma Applies to Business
Performance
β6π β5π β4π β3π β2π β1π 1π 2π 3π 4π 5π 6π
6 Standard Deviations = Sigma Level
Mean
Process Average Upper LimitLower Limit
99.7%
95%
68%
24. Methodologies in Six Sigma
DMAIC DMADV
Define
Measure
Analyze
Improve
Control
Define
Measure
Analyze
Design
Verify
25. DMAIC
Define Define the problem statement
Map the current process, gather data, identify and
understands the root cause of the problemMeasure
Analyze Analyze the data & the process to reduce the defect
& wastes of the existing process
Improve Work on the defects by using the improvement ideas
Control Document how the process improvements will be
passed on
26. DMADV
Define Project goals & deliverables are defined
Measure the factors that are critical to its deliverableMeasure
Analyze Analyze different process options that will best meet
the required deliverables
Design Document the detailed process that meets the
deliverables
Verify Verify that the goals & deliverables are achieved
through the newly designed process
28. Lean Benefit: Increases Revenue
Loans processed per month Loans processed per month
Before Lean After Lean
Home Loans Revenue Home Loans Revenue
Before processes were improved, 200
loans were successfully funded per month.
Inefficient process = less revenue
After processes were improved, 600 loans
were successfully funded per month.
More funded applications = more revenue
29. Lean Benefit: Decreases Costs
Computers on Assembly Line Computers on Assembly Line
Before Lean After Lean
Computers
Assembled
Cost due
to defects
Before processes were improved,
2 out of 4 computers had broken screens.
More defects = Increased costs
After processes were improved,
No computers had broken screens.
Less Defects = Decreased costs
Computers
Assembled
Cost due
to defects
30. Lean Benefit: Increases Efficiency
Patients Seen Per Doctor Patients Seen Per Doctor
Before Lean After Lean
1 Doctor
Satisfied
Patients
After processes were improved.
1 doctor could see 9 patients successfully.
Increased efficiency =
More successful patient visits
1 Doctor
Satisfied
Patients
Before processes were improved.
1 doctor could only see 4 patients successfully.
Decreased efficiency =
less successful patient visits.
31. Become a Lean IT Foundation
Certified Professional
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