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Lean Six Sigma methodology

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Lean Six Sigma is a process improvement methodology that relies on a collaborative team effort to improve performance by systematically removing waste, combining Lean and Six Sigma to eliminate the eight kinds of waste

Lean Six Sigma projects comprise aspects of Lean's waste elimination and the Six Sigma focus on reducing defects

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Lean Six Sigma methodology

  1. 1. ramirocid.com ramiro@ramirocid.com Twitter: @ramirocid Ramiro Cid | @ramirocid Lean Six Sigma Methodology
  2. 2. ramirocid.com ramiro@ramirocid.com Twitter: @ramirocid 2 Index 1. Concepts Slide 3 2. Introduction Slide 4 3. DMAIC Slide 7 4. Process Mapping Slide 8 5. Fishbone Diagram Slide 9 6. SIPOC Slide 10 7. CTQ’s Slide 11 8. Metrics Slide 12 9. Risk Analysis Slide 13 10. Graphs Slide 14 11. Business Case Slide 15 12. Certifications Slide 16 13. Sources used and webs to expand knowledge Slide 17
  3. 3. ramirocid.com ramiro@ramirocid.com Twitter: @ramirocid Lean: Created by Toyota on 1989. (Author: Jim P. Womack) Focus on speed and best cost (efficiency) Main concepts of this methodology: Identify and remove 8 wastes: Transport, Inventory, Motion, Waiting, Over production, Over processing, Defects and Skills Six Sigma: Created by Motorola on 1985 Focus on effectivity of processes Some companies who implemented Six Sigma: GE (implemented and refined it), 3M, Airbus, Phillips Main concepts of this methodology: 1) Statistical number, 2) Methodology (DMAIC), 3) Philosophy on customer focus and in 0 defects. 4) Data driven decisions 1. Concepts
  4. 4. ramirocid.com ramiro@ramirocid.com Twitter: @ramirocid Lean Six Sigma is a process improvement methodology that relies on a collaborative team effort to improve performance by systematically removing waste, combining Lean and Six Sigma to eliminate the eight kinds of waste (muda): Transportation, Inventory, Motion, Waiting, Over production, Over processing, Defects, and Skills (abbreviated as 'TIMWOODS'). The Lean Six Sigma concepts were first published in a book titled Lean Six Sigma: Combining Six Sigma with Lean Speed by Michael George and Robert Lawrence Jr. in 2002 Lean Six Sigma utilizes the DMAIC (Define, Measure, Analyze, Improve and Control) phases similar to that of Six Sigma. Lean Six Sigma projects comprise aspects of Lean's waste elimination and the Six Sigma focus on reducing defects, based on critical to quality (CTQ) characteristics. In the next slides we will see some tools used by this methodology. To show all them we will include some examples to show how to use each of them. 2. Introduction
  5. 5. ramirocid.com ramiro@ramirocid.com Twitter: @ramirocid Lean Six Sigma includes concepts of both methodologies. Six Sigma use statistics tools for characterization and study of the processes, this is the reason of the name, as sigma is the standard deviation which gives an idea of the variability in a process and the goal of Six Sigma is to reduce it so that the process is always within the limits set by customer requirements. 1 sigma = 690,000 DPMO = 32% efficiency 2 sigma = 308,538 DPMO = 69% efficiency 3 sigma = 66,807 DPMO = 93.3% efficiency 4 sigma = 6.210 DPMO = 99.38% efficiency 5 sigma = 233 DPMO = 99.977% efficiency 6 sigma = 3.4 DPMO = 99.99966% efficiency 7 sigma = 0.019 DPMO = 99.9999981% efficiency Note: DPMO means “Defects per million opportunities” 2. Introduction
  6. 6. ramirocid.com ramiro@ramirocid.com Twitter: @ramirocid Regarding the other methodology, Lean manufacturing or lean production, often simply "lean", is a systematic method for the elimination of waste ("Muda") within a manufacturing system. Lean also takes into account waste created through overburden ("Muri") and waste created through unevenness in work loads ("Mura"). Working from the perspective of the client who consumes a product or service, "value" is any action or process that a customer would be willing to pay for. Lean principles are derived from the Japanese manufacturing industry. The eight muda are: 1. Transport (moving products that are not actually required to perform the processing 2. Inventory (all components, work in process, and finished product not being processed 3. Motion (people or equipment moving or walking more than is required to perform the processing 4. Waiting (waiting for the next production step, interruptions of production during shift change 5. Overproduction (production ahead of demand 6. Over Processing (resulting from poor tool or product design creating activity 7. Defects (the effort involved in inspecting for and fixing defects 8. Skills (waste of Skills, referred to as "under-utilizing capabilities and delegating tasks with inadequate training) 2. Introduction
  7. 7. ramirocid.com ramiro@ramirocid.com Twitter: @ramirocid 7 3. DMAIC DEFINE CONTROL IMPROVE ANALYSE MEASURE Project Charter ü Process Mapping ü Fishbone diagram ü Process Analysis ü Create Solutions ü Select Solutions ü Validate Solutions ü Implement Solutions ü Monitoring ü Documentation ü What’s my problem ? How big is my problem ? What are the root causes of my problem ? What is the best solution ? How can we sustain the improvement ? “Big impact on business during IT infrastructure incidents” SLA’s vs. Resolution time average This lack of visibility of critical information technology is a problem To have a monitoring system connected to Incident management application Doing the maintenance and update of all IT Assets in the monitoring system One practical example:
  8. 8. ramirocid.com ramiro@ramirocid.com Twitter: @ramirocid An example of a Process mapping where an IT Incident management: 4. Process Mapping
  9. 9. ramirocid.com ramiro@ramirocid.com Twitter: @ramirocid An example of a Fishbone Diagram where time to resolve an incident is the target and we have 6 different domains: Man, Method, Materials, Mother Nature, Machine and Measurement 5. Fishbone Diagram
  10. 10. ramirocid.com ramiro@ramirocid.com Twitter: @ramirocid An example of a SIPOC table where the different steps we have on Process Mapping are showed as a table: 6. SIPOC Supplier Input Process Output Customer Customer Call / Email / Monitoring tool Notification Detection Record in Incident Management tool Monitory tool Alarms Notification Detection Record in Incident Management tool Infrastructure System logs Analyze Record in Incident Management tool IT Area Knowledge / Experience / Documentation Corrective action Record in Incident Management tool IT Area Solution found Quality check Notification Customer Feedback Close incident Record in Incident Management tool IS
  11. 11. ramirocid.com ramiro@ramirocid.com Twitter: @ramirocid An example of a CTQ’s where we could see 3 different aspects of a problem: a) VOC (‘Voice of Client’) where we include what our customer (internal or external) wants, b) Statements which are close to the true (possible to get) and finally c) CTQ which is like the SLA of the target we want to reach. 7. CTQ’s VOC True need CTQ "Alarm notification at the time it happens" Time [< 5 Minutes] 1 minute to receive the alert on Incident management from monitoring tool "I would not need to report the incident" 0 Incidents reported by users All IT assets monitored "No delays on my process because IT infrastructure reason" Resolution time following SLAs in Incident management tool Resolution time following SLAs in Incident management tool
  12. 12. ramirocid.com ramiro@ramirocid.com Twitter: @ramirocid An example of metrics we want to reach using an Incident management tool: 8. Metric Reference: SLA Interactions or incidents SLA (Resolution time objective) Days SLA (Resolution time objective) Hours 1 - Critical 0,25 6 2 - High 0,25 6 3 - Average 1 24 4 - Low 4 32
  13. 13. ramirocid.com ramiro@ramirocid.com Twitter: @ramirocid An example of Risk Analysis. In spite of is not mandatory to use it on Lean Six Sigma, it is ever recommended to do it to get the risks of a new project, environment, change, etc. with the target of reduce as much as possible the residual risk (the risk after apply controls): 9. Risk Analysis C I A factor value No dual power source in routers In case some electric phase is down the router will be down 2 routers: Main and backup. Backup router give service in less than 10 seconds in case of the main crash. Both are connected in different electric phases x 1 4 1 4 No dual power source in Colt fibber convertes in front of routers In case some electric phase is down the router will be down 2 routers: Main and backup. Backup router give service in less than 10 seconds in case of the main crash. Both are connected in different electric phases x 1 4 1 4 Router not accessible by in case WAN connection crashes In case WAN connection is down will not be able to access to manage the router have a management modem connected by an analogic line to manage the router by console port x 1 1 2 2 Router Buenos Aires John Smith Michael Johnson Location/s Power user Vulnerability description Threat description Existing Controls/practicesAsset Risk Owner ProbabilityImpact Risk Value Assets criticality
  14. 14. ramirocid.com ramiro@ramirocid.com Twitter: @ramirocid In spite of is not mandatory to use them on Lean Six Sigma, it is ever recommended to do because help us to show data in an easy way so giving us support to our statements. We can use MS Excel or similar tools, but we have an specific tool for statistical data management and graphs called ‘Minitab’ very useful for Lean Six Sigma projects 10. Graphs
  15. 15. ramirocid.com ramiro@ramirocid.com Twitter: @ramirocid An example of summary of a Business Case (after do all the calculations needed to get the final figures): A Business Case is ever needed to justify our investments (CAPEX and/or OPEX) in a project so for Lean Six Sigma it is important too to do it. 11. Business Case Gross Profit Topic Total Cost Gross Profit 1st year: Cost of monitoring - Cost of incidents - 10% of saving because monitoring rollout) 5.530,00 € No profit Gross Profit next years: Cost of monitoring - Cost of incidents - 10% of saving because monitoring rollout) 730,00 € No profit
  16. 16. ramirocid.com ramiro@ramirocid.com Twitter: @ramirocid There are 4 steps to be certificated on Lean Six Sigma: 12. Certifications
  17. 17. ramirocid.com ramiro@ramirocid.com Twitter: @ramirocid  What is Lean Six Sigma | goleansixsigma.com URL: https://goleansixsigma.com/what-is-lean-six-sigma/  ‘Lean Six Sigma’ | Wikipedia URL: https://en.wikipedia.org/wiki/Lean_Six_Sigma  What is Six Sigma? | AU: T. M. Kubiak and Donald W. Benbow URL: http://asq.org/learn-about-quality/six-sigma/overview/overview.html  Six Sigma vs. Lean Six Sigma | Villanova University URL: http://www.villanovau.com/resources/six-sigma/six-sigma-vs-lean-six-sigma/#.V87e7UYqSJ8  LSSI – Lean Six Sigma Institute URL: http://www.leansixsigmainstitute.org/ 13. Sources used to expand knowledge
  18. 18. ramirocid.com ramiro@ramirocid.com Twitter: @ramirocid Questions? Many thanks ! Ramiro Cid CISM, CGEIT, ISO 27001 LA, ISO 22301 LA, ITIL ramiro@ramirocid.com @ramirocid http://www.linkedin.com/in/ramirocid http://ramirocid.com http://es.slideshare.net/ramirocid http://www.youtube.com/user/cidramiro

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