6 sigma
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6 sigma
- 1. Office of the Secretary of Defense Lean Six Sigma Overview Mr. Wayne Leathers Master Black Belt DoD Lean Six Sigma Program Office Office of the Deputy Chief Management Officer Unclassified
- 2. ● Lean Six Sigma Define Measure Analyze Improve Control UNCLASS OSD, DCMO L6σ Leadership Training UNCLASS Agenda • What is Lean Six Sigma? • DMAIC Overview • Continuous Process Improvement • Selecting The Right Projects
- 3. ● Lean Six Sigma Define Measure Analyze Improve Control UNCLASS OSD, DCMO L6σ Leadership Training UNCLASS Foundation of Lean 6 Sigma -Dr. Mikel Harry Motorola If you cannot express what you know in numbers, you don’t know much about it; If you don’t know much about it, then you can’t control it; If you can’t control it, you are at the mercy of chance.
- 4. ● Lean Six Sigma Define Measure Analyze Improve Control UNCLASS OSD, DCMO L6σ Leadership Training UNCLASS Foundation of Lean 6 Sigma Definitions of Insanity: Doing the same thing over and over and expecting a different outcome! AND Using the same logic to get out of the trouble that got you there in the first place! -Albert Einstein
- 5. ● Lean Six Sigma Define Measure Analyze Improve Control UNCLASS OSD, DCMO L6σ Leadership Training UNCLASS5 Why Lean Six Sigma? • It Works • Proven Track Record • It is needed • DepSecDef has mandated that all of DoD begin practicing some form of Continuous Process Improvement (CPI) • Many different methods of CPI available, but none have a more balanced approach than Lean Six Sigma
- 6. ● Lean Six Sigma Define Measure Analyze Improve Control UNCLASS OSD, DCMO L6σ Leadership Training UNCLASS What is Lean? • Lean is a methodology that evaluates processes with a focus on Speed Efficiency What you Believe it is... What it Actually is... What you Want it to be.. Cut Waste & Remove Non-Value Added activities
- 7. ● Lean Six Sigma Define Measure Analyze Improve Control UNCLASS OSD, DCMO L6σ Leadership Training UNCLASS What is Lean? AA BB CC DD EEL1 L2 L3 Customer Customer DA DB DC DD DE SES Level Action Officers Staff Director Lean breaks a process down to understand the steps and actions as they occur, the time and resources needed to complete, as well as the delay and wait time between process steps
- 8. ● Lean Six Sigma Define Measure Analyze Improve Control UNCLASS OSD, DCMO L6σ Leadership Training UNCLASS What is Six Sigma? • Six Sigma evaluates a process in terms of performance, accuracy, and consistency • Pain Points in performance are targeted for improvement Time σ LSL USL σ6 Standard deviation
- 9. ● Lean Six Sigma Define Measure Analyze Improve Control UNCLASS OSD, DCMO L6σ Leadership Training UNCLASS9 The Look of 6σ Performance 99% Good 99.99966% Good 20,000 5,000 200,000 7 hr per month Lost articles of mail per hour 7 Incorrect surgeries per wk 1.7 Wrong prescriptions each yr 68 Hours without electricity 1 hr per 34 years
- 10. ● Lean Six Sigma Define Measure Analyze Improve Control UNCLASS OSD, DCMO L6σ Leadership Training UNCLASS Even at 99% quality (equivalent to a sigma level of 3.8), there would be: • Unsafe drinking water almost 10 hours each month • At least 200,000 wrong drug prescriptions per year • Two short or long landings at O’Hare airport each day • Over 90,000 wrong felony convictions per year • 20,000 lost or incorrectly delivered articles of mail per hour Why Aim as High as 6 Sigma?
- 11. ● Lean Six Sigma Define Measure Analyze Improve Control UNCLASS OSD, DCMO L6σ Leadership Training UNCLASS 2000 Why Use Lean Six Sigma? • LSS is the CPI industry standard Increase throughput Shorten cycle times Reduce defects Lower costs 1992 1995 Today Motorola ABB TI IBM DEC Kodak AlliedSignal GE Siebe Foxboro Lockheed Martin Bombardier John Deere Whirlpool GenCorp Nokia Sony Siemens Compaq Seagate PACCAR Toshiba DuPont Dow Chemical Maytag Praxair Ford Air Products Honeywell Johnson Controls Johnson & Johnson Fannie Mae Bank Of America Intuit AXA Equitable United Health Group Cardinal Health Blue Cross Providence Health Home Depot US DoD Wells Fargo Robert Half Fifth Third Bank CitiGroup
- 12. ● Lean Six Sigma Define Measure Analyze Improve Control UNCLASS OSD, DCMO L6σ Leadership Training UNCLASS Where Are Businesses Today? Experts think most businesses fall between 3 - 4 sigma DPMO 0 1 10 100 1000 10000 100000 1000000 0 1 2 3 4 5 6 7 Process Sigma IRS answ ers 21% ofcalls O ntim e flightarrivals (allcarriers) M ishandled baggage (allcarriers) O vernightdelivery of1stClass M ail Correctlegaladvice from IRS W ire transfers Restaurantbills Payrollprocessing Dom estic airline fatality rate (0.43ppm )
- 13. ● Lean Six Sigma Define Measure Analyze Improve Control UNCLASS OSD, DCMO L6σ Leadership Training UNCLASS A Program of Process Improvement Practical Problem Statistical Problem Statistical Solution Practical Solution • Define project scope • Determine primary metric • Determine secondary metric(s) Define • Validate the Y measurement system • Determine initial capability • Subjective exploration of potential Xs Measure • Characterize the XY relationships • Use graphical and quantitative analyses to separate trivial many from critical few. Analyze • Confirm critical Xs • Reduce variation • Shift the mean • Confirm results Improve • Assess new process capability • Mistake-proof the process • Place controls on process • Document and share the results Control
- 14. ● Lean Six Sigma Define Measure Analyze Improve Control UNCLASS OSD, DCMO L6σ Leadership Training UNCLASS14 What else is Six Sigma? Traditional Approach Fixing symptoms Reactive Experience-based Tweaking If time permits Hierarchy Firefighting Organizational Issue Problem resolution Behavior Decision making Process adjustment Employee training Chain of Command Direction Cultural Change Six Sigma Approach Preventing causes Proactive Data-based Controlling Mandated Empowered teams Benchmarking & metrics
- 15. ● Lean Six Sigma Define Measure Analyze Improve Control UNCLASS OSD, DCMO L6σ Leadership Training UNCLASS Fundamental Principle of LSS We know we must change Xs to create a change in Y… But how do we know which Xs to change and how to change them? y = f (x1, x2, …) process output is key process and input factors that cause variation in the output a function of That’s the purpose of Six Sigma!
- 16. ● Lean Six Sigma Define Measure Analyze Improve Control UNCLASS OSD, DCMO L6σ Leadership Training UNCLASS What is our Mission? Y (x)= f (x)(x) Y (x)= f (x)(x)
- 17. ● Lean Six Sigma Define Measure Analyze Improve Control UNCLASS OSD, DCMO L6σ Leadership Training UNCLASS Who is the Customer? How do we know if we are meeting our customer’s expectations?
- 18. ● Lean Six Sigma Define Measure Analyze Improve Control UNCLASS OSD, DCMO L6σ Leadership Training UNCLASS Who is the Customer? • What is the mission of your organization? • Who is the customer for your organization? Are they internal, external, or both Military, civilian, political, taxpayers? • Do you know when you are succeeding or failing your mission? • Are your customers satisfied with your organization’s performance? ?
- 19. ● Lean Six Sigma Define Measure Analyze Improve Control UNCLASS OSD, DCMO L6σ Leadership Training UNCLASS Determining Customer Expectations • How are expectations communicated? • Are the mission objectives measurable? • Are customer expectations clearly understood throughout the entire organization? • Have specifications been confirmed?
- 20. ● Lean Six Sigma Define Measure Analyze Improve Control UNCLASS OSD, DCMO L6σ Leadership Training UNCLASS Target USLLSL Performing to Expectations • The specification limits represent the parameters of performance desired by the customer. • The Upper Spec Limit (USL) & Lower Spec Limit (LSL) represent the level of tolerance around this desired target. • Together, they represent what the customer wants! Not what the process does.
- 21. ● Lean Six Sigma Define Measure Analyze Improve Control UNCLASS OSD, DCMO L6σ Leadership Training UNCLASS21 Benefits of Continuous Improvement • Project benefits can come in many forms: Improved Mission Success Improved Quality Performance Improved Customer Satisfaction Improved Budget Execution Improved Financial Investment Productivity Improvements Throughput improvement On Time Delivery Reduced contractor dependency Accuracy Improvement Error Reduction Financial savings Cost Avoidance
- 22. ● Lean Six Sigma Define Measure Analyze Improve Control UNCLASS OSD, DCMO L6σ Leadership Training UNCLASS The Lean Six Sigma Cadre • Green Belt Researcher, Data Analyzer, Team leader • Champion Executive-level Sponsor/Supporter • Senior Steering Committee OSD, Service, Agency, Activities Reps • Master Black Belt Manages deployment of several Black Belts and mentors Black Belts/ Green Belts • Black Belt Full-time Practitioner
- 23. ● Lean Six Sigma Define Measure Analyze Improve Control UNCLASS OSD, DCMO L6σ Leadership Training UNCLASS Critical to Success QUALITY / COST / DELIVERY Process Improvement Projects Strategic Objectives Key Processes Metrics Must be able to tell us if we are meeting objectives Strategy/Tactics Prioritize initiatives according to their impact on the Mission Objectives that are most important to the achievement of our Strategic Objectives. Mission Vision Performance Management
- 24. ● Lean Six Sigma Define Measure Analyze Improve Control UNCLASS OSD, DCMO L6σ Leadership Training UNCLASS • Poor Project Selection Projects are too large in scope Projects are insignificant in value • Allowing projects to drift from connection to Mission Strategy • Undertaking more than staffed to handle • Little or no sharing of results and best practices • Forgetting about the people not directly involved in the deployment • Forgetting human nature People are resistant to change and …”What’s in it for Me?” Not changing the culture of the organization • Inadequate tracking and reporting of Key Process Indicators (KPIs) at the senior leadership level Why CPI Initiatives Fail
- 25. ● Lean Six Sigma Define Measure Analyze Improve Control UNCLASS OSD, DCMO L6σ Leadership Training UNCLASS The Lean Six Sigma Tollgate Project Charter Problem Statement Defined Benefits Business Case Process Map Potential Xs “To Be” Process Map Transition Plan Measurable Y Customer Specs/VOC Data Collection Plan Data Collected Critical Xs Improvement Strategy Improvement Model “X” Improvement Target QC Chart Cross Functional Team Data Presentation Run Chart; Histogram; Mean/Stand. Dev. Required Data Display: Pareto Charts; Fish Bone / C&E; Histograms; Mistake-Proofing Communication to Impacted Areas Timeline Updated CTQs/CTPs Optional Data Display: Descriptive Stats.; Time Series Plots; Control Charts; Box Plots FMEA Project Documentation SIPOC “Y” Performance Target XY Matrix Risk Analysis & Risk Mitigation Plan I accept the Define Tollgate. Signed: I accept the Measure Tollgate. Signed: I accept the Analyze Tollgate. Signed: I accept the Improve Tollgate. Signed: I accept the Control Tollgate. Signed: (Sponsor) (Sponsor) (Sponsor) (Sponsor) (Sponsor) (Process Owner) (Process Owner) (Process Owner) (Process Owner) (Process Owner) (MBB ) (MBB ) (MBB ) (MBB ) (MBB ) (Finance Owner) (Finance Owner) (Finance Owner) Define Measure Analyze Improve Control Involve, Align and Empower
- 26. ● Lean Six Sigma Define Measure Analyze Improve Control UNCLASS OSD, DCMO L6σ Leadership Training UNCLASS Lean Six Sigma Time for Questions
Editor's Notes
- <number> Office of the Secretary of Defense Lean Six Sigma Overview Mr. Wayne Leathers Master Black Belt DoD Lean Six Sigma Program Office Office of the Deputy Chief Management Officer
- <number> Agenda What is Lean Six Sigma? DMAIC Overview Continuous Process Improvement Selecting The Right Projects
- <number> Much of what we do day to day is naturally expressed in some type of numerical format, vis-à-vis How long it takes you to get to work The expected temperature for the day Stock Market Report Think about how hard it would be to have a discussion, or buying and selling stock, if the only data you are being provided is that it is up or down
- <number> We are often asked “What are the consequences of doing nothing?”; the answer is simple - tomorrow will look just like today, and the problems and issues of yesterday will be there for us to deal with again tomorrow. There are assumptions that are safe to make about process issues. If the problem has been around awhile, it is safe to assume that it is complex. If it were easy to solve, someone would have done it already. Therefore a different approach is needed. Also, bringing back “Subject matter experts” of the past, at best can only take you and your process back into the past. The longer the “expert” has been away from the process, the more distant their experience and the farther back they will take your process
- <number> There is no denying that LSS has been very successful in the private sector over the past 20 years. Hundred of billions of dollars and man hour equivalents have been reinvested. To say that it can’t work in government can only be an indictment of our inability to lead change. The DepSecDef has worked in companies where CPI/LSS has been successful. He knows it works and can improve processes and transform an organization.
- <number> Processes are rarely as simplistic as we believe they are. We generally only have visibility of the process around us, and rarely know how many steps were ahead of us or are behind us. We also rarely understand what kind of impact we have on down range process steps.
- <number> One of the concepts of process management and six sigma is a process focus—understanding the organization as levels of processes. A process is a group of tasks that are directed at accomplishing some particular outcomes. Processes often cut across many business functions. Examples are the steps in producing a product, hiring a new employee, or filling an order. There are thousands of processes in organizations. These processes can be structured as levels of processes as shown in the graphic above. In this course, the highest level is referred to as Level 1. Each Level 1 process (A through E) can be broken down further into steps indicated by Level 2 and so on. The concept of viewing work as a process and process levels will be explained in more detail in subsequent sections.
- <number> In 6 Sigma, the focus of attention is towards making processes perform consistently to customer expectations. If a process is consistently on target, with little variation, the process will have little waste of valuable resources resulting in lower costs to produce. Variation = waste of resources.
- <number> Improvements, while not easy to come by, do have dramatic effects on performance.
- <number> While on the surface process performance at 6 sigma may seem either unnecessary or a bridge too far, there are many businesses and services today that consistently perform above 6 sigma Even at 99% quality (equivalent to a sigma level of 3.8), there would be: At least 200,000 wrong drug prescriptions per year Unsafe drinking water almost 10 hours each month Two short or long landings at O’Hare airport each day Over 90,000 wrong felony convictions per year 20,000 lost or incorrectly delivered articles of mail per hour
- <number> 90% of US businesses are service related. Yet Six-sigma was originally developed for the manufacturing industry – DuPont, Dow, etc. are leading the way for the chemical industry. GE was very successful in extending Six-Sigma methodology to transactional applications (i.e. G.E. Capital). Since 2003, the majority of businesses using LSS are now service related and are experiencing dramatic results in operational performance.
- <number> There are often trade-offs that can occur. In the Airline industry, flight safety is critical, and requires above 6sigma performance. The same level of resources are not applied to on time take-offs and arrivals along with baggage handling as flight safety. Source: Some of this data comes from government reports. Other data points are referenced in Mikel Harry, The Vision of Six Sigma: A Roadmap for Breakthrough (Phoenix, AZ: Sigma Publishing Company, 1994).
- <number> The DMAIC process has been successful because it relates the problem in practical terms, uses data to characterize and understand process performance as it relates to mission and customer desire, then translates the solution back into practical terms.
- <number> If we have a desire to improve how our organizations and processes perform, we must take a different approach to that change.
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- <number> How can we expect to meet mission and customer expectations for performance if we do not understand the various ways that external factors influence our processes?
- <number> Our organizations have customers and a mission. Knowing who the internal or external customers are and specifically what they desire is critical. In addition, we must be able to convert those needs into measurable targets and acceptable and unacceptable levels of performance.
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- <number> When all else fails, ask. Push for measurable expectations, otherwise you will be in an indefensible position if it is said that you failed to meet objectives.
- <number> Specifications give us the standard to go by. Whereas the performance measures tell us what the process does, specifications tell us what it is supposed to do, or what the customer demands.
- <number> Each organization is responsible for determining what the benefits are, and how they can be measured. There are many ways to do this; the key however, is that the project results must be measurable. If they are not, it is impossible to know what the performance was, and what it is now. These projects are a good news success story. Make sure you can point to them with pride and feel comfortable that you can defend results, if needed. Not everyone wants to see things change.
- <number> LSS is a skills and knowledge based investment approach. Green Belts have the skills and knowledge needed to take on mini-DMAIC projects. The best fit project is one where the sponsor has decision rights over the process. Black Belts have skills and knowledge needed to take on full DMAIC projects. These projects are typically more complex and may span across more than one area of responsibility where gaining agreement is more difficult to achieve. The Master Black Belt can work enterprise wide projects, work with leadership to scope projects, build improvement plans, train Green Belts and Black Belts, and lead LSS Deployment efforts. The Champion or Sponsor is the person who has decision rights for the process being targeted, is the underwriter of the project. Active support of the project team by the Champion is essential for successful project conclusion. The Senior Steering Committee is made up of representatives from the Services and primary Agency and Activity Reps and is the LSS governing body. They make decisions on deployment strategy, certification requirements, acceptable CPI methodology.
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- <number> The Project Toll Gate provides the project team and the project sponsor with a record of activity completion of the major events in the project life cycle.
- <number> The Project Toll Gate provides the project team and the project sponsor with a record of activity completion of the major events in the project life cycle.