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Basic understanding of lean six sigma approach for improvement


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Before we start working on a project for process improvement.
It is very important to create awareness.
I made this presentation to provide basic understanding of Lean and six sigma.
Usually audience used to be SME, process owner and Higher management people.
After this training ,audience gets a roadmap/ strategy for improvement and how I will help them to improve.
I take their inputs after training and than we start with VOC, VOB and identification of problems and this is how I prefer to start.

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Basic understanding of lean six sigma approach for improvement

  1. 1. Viral Jain Six sigma and Lean expert
  2. 2. What is Lean six sigma  Its all about Process/Quality improvement  Process improvement by increasing performance and by decreasing variation  Lean six sigma is a vehicle for strategic change (Only for critical reasons)  This is a combination of two approaches Lean and six sigma
  3. 3. Lean  Lean concentrate on customer values, waste elimination  Traditional working style is Result oriented. This is good but on long run it becomes a problem when we only concentrate on result rather than process  Lean emphasis on process that is driven for value added services to customers. Instead of only expected result delivery to customers.
  4. 4. 7 wastes in a process (WORMPIT)  Waiting  Rework  Over-Processing  Inventory (More “In box” and less “Out box”)  Transportation (When work is distributed our locations)  Over-production (Output that is more than required)  Motion (Un-necessary movement of work) We have to reduce theses wastes from our work as much as possible (Practically zero waste is not possible)
  5. 5. Six sigma  Statistical approach for change  Here everything is data driven  A six sigma project allows max 3.4 defects/Million units  Advantages of Six sigma:- Defect reduction Yield improvement Improved customer satisfaction Higher net income
  6. 6. Data driven approach  Y = f(X) Y X Dependent Independent Output Input Effect or problem Cause Symptom Problem Monitor Control Response Factor
  7. 7. Data driven approach  Our problem is Y, so if we want improve Y than we have to identify X and we have to work on X  Six sigma gives us method for this i.e. DMAIC and DMADV  DMAIC: For existing system  DMADV: For new system
  8. 8. About Six sigma  We can use Six sigma in following three manners for improvement or to solve any problem  As philosophy (Roadmap)  As Method  As set of tools  In this session, We will concentrate of philosophy and methods only
  9. 9. DMAIC  Six sigma is based on DMAIC and DMADV approach.  DMADV: For developing new products  DMAIC: For improving existing products  We will discuss DMAIC in this session DEFINE MEASURE ANALYZE IMPROVE CONTROL
  10. 10. Define  Define to know “What is important”  Six sigma approaches should only be used if problem is critical and improving that problem will increase our benefits a lot.  Define phase will give answers of “how bad the problem is?” and “Should we use six sigma approach?”  Define phase will provide a project charter  It will give a process overview map and scope of work
  11. 11. Define steps  First and main step is be specific and have patience  We have to indentify only the problems ,no solutions, no analysis. Nothing else but just the problem identification (Y)  Let’s divide Define phase work:- 1. Generate project ideas 2. Identify and select Y measures 3. Select one primary Y measure 4. Generate Project charter and SIPOC
  12. 12. 1. Generate project ideas  Get list of problems using:- i. Voice of customer (VOC) ii. Voice of business (VOB) iii. Cost of poor quality (COPQ)  To get more clarification about the current status of a process, Use balanced scorecard  Identify critical to quality (CTQ)
  13. 13. Balanced Scorecard  Balanced SC in used to “Set, track, achieve key objectives and strategy”  There are 4 balanced SC that can be used:- 1) Financial SC 2) Customer SC 3) Internal business SC 4) Learning and growth SC In simple words, SC is to see where are we now/before/later
  14. 14. Select project Y measure  Till now we should have many CTQ (Y)  Prioritize them using prioritization matrix  prioritization matrix includes:- 1) Risk 2) Impact 3) Effort  Here we are prioritizing the problems
  15. 15. Selection of most critical Y
  16. 16. Business charter and SIPOC  These are the main deliverables of Define phase.  Everything will be now based on selected most critical Y (That we got in previous steps)  These documents will mainly be used by higher management and they have to sign/approve project based on these docs (Specially business charter)  Based on these documents, It will be decided that should we start deploying six sigma on this project or not.
  17. 17. Output of Define phase
  18. 18. Lets talk about this before moving forward  Six sigma approach eliminates the pain available in the business processes…but this treatment is costly and not all the processes are eligible for this.  Define phase reveals that what the pain? Do we have to work on that? Working on that pain is even worthy?  Measure phase tells that what is the pain area?… Our average performance is far from target or the problem is variation or both.  Off course analyze phase will find the root cause and than the improvement…
  19. 19. Measure  Following are the steps of measure:- 1. Define Y (Elaborate) 2. Collect data for Y 3. Select a measurement system to evaluate Y 4. Validate measurement system 5. Calculate any of below to evaluate current performance o Sigma level o Process capability indicates
  20. 20. Measure  Lesser the sigma level, lesser the performance of process.  Sigma level is a measure for a layman.  Process capability indicates (Cp, Cpk)  Cp gives information about deviation from target  Cpk with Cp gives information about variation in performance
  21. 21. Analyze  Y = f(X) = X1 + X2 + X3 + ….  This is root cause analysis  Following are the steps :- 1. List all probable X’s (2 ways)  Qualitative screening  Process Map analytics 2. Identify critical X’s 3. Verify sufficiency of critical X’s for the project
  22. 22. Validate critical potential inputs Two ways:- 1. Hypothesis test:- For a particular X, this test tool gives us information as follows:- Business problem -> Mathematical case -> Mathematical inference -> Business inference ($) 2. Forecast/ Regression analysis:- It includes Scatter plot , Co-relation and Regression
  23. 23. Verify sufficiency of critical X  If improving critical X’s will have capability to realize the targeted improvement, then move to improve phase  Else find more X’s or review the project charter again
  24. 24. Improve  Generate and evaluate alternative solutions  Select and Optimize best solution  Pilot ,Implement and validate solution
  25. 25. Generating alternative solution  Process Mapping  Based on cycle time and VA/NVA analysis  Benchmarking  Ideation technique  We will talk more about this  Brainstorming  De Bono Six Thinking Hats  Probing
  26. 26. Process mapping  Select the problem area  Create map for that process  Find the pain area  Detailed map for pain area  Act of improvement, deletion, leveling etc. This step is basically is part of Lean practices.
  27. 27. Benchmarking types:-  Strategic  Process  Competitive  Functional  Internal  External  International  Any of the above should be considered as baseline for benchmarking
  28. 28. Brainstorming  Generate as many as possible ideas in short time  Have Literal as well as vertical thinking  Literal thinking - Indirect and creative approach. May be not possible to achieve by traditional way.  Vertical thinking – Selective ,analytical and sequential approach  Don’t criticize any idea and encourage inputs from all team members. Its not necessary in this step to get all sensible solutions.
  29. 29. De Bono six thinking hats  This is creative thinking technique  Main motive is : creative problem solving by avoiding negativity and group arguments  This technique is based on human emotions
  30. 30. Six colors and Associated human emotions with these colors  White : Neutral ,objective  Red : Emotional and intuitive  Black : Cautious and Careful  Yellow : Hope and Positive  Green : Creative and lateral thinking  Blue: Control and organized thinking
  31. 31. How to use it to get solutions  Wear each hat at different time to get many solutions for a problem  Analyze all the solutions and pick the best one solution
  32. 32. Probing  Considered as child’s method  Answer below questions and a easy and common solution will come out:-  Why do we need this process step?  Who else could be doing this?  Can we combine some tasks?  Journalists uses this method to remove layers of hidden information
  33. 33. Evaluating a solution  We can use any of the following methods for evaluating solutions:-  Multi – Voting  FMEA – Failure mode and effect analysis  Pugh matrix
  34. 34. Final steps for solutions  Validate changes on small scale (Pilot)  Evaluate the negative and positive impacts  To get a idea of full scale implementation  Full scale implementation
  35. 35. Control  Implement control system for critical X’s  Document solution and benefits  Transfer to process owner
  36. 36. Implement control system for critical X’s  To ensure that process stays in control after the solution has implemented  To quickly detect the out of control state and associated special causes  Actions for the special states
  37. 37.  In simple words ,we observe response of new changed process for different sets of data  Make a chart for all responses  Put Min and Max limit of expected data  Check special events (Out of bound)  Take actions for special events
  38. 38. Document solutions and project handover  Document all the solutions and benefits  Handover the project to process owner
  39. 39. Thanks  Aim of this presentation is to get a basic understanding of DMAIC approach  Hope we got basic understanding  If you have any questions, please ask … Contact details:  Thank you …