Lean Six Sigma Overview

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Overview of Lean Six Sigma for gaining a competitive advantage by satisfying customers.

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Lean Six Sigma Overview

  1. 1. Lean Six Sigma Competitive Advantage by Satisfying Customers May 2010 Terry P. Dockum
  2. 2. Presentation Overview <ul><li>Goal and scope of Lean Six Sigma </li></ul><ul><li>Reported Improvements </li></ul><ul><li>Where to start improving </li></ul><ul><li>Key Success factors </li></ul><ul><li>When to use Lean or Six Sigma </li></ul><ul><li>Tools of improvement </li></ul><ul><li>Contact information </li></ul>
  3. 3. Overview – Lean Six Sigma <ul><li>Goal - Gain a competitive advantage by satisfying customers, eliminating waste, and improving flow. </li></ul><ul><li>Scope – Every significant facet of business from new product design concepts through product performance feedback. </li></ul>
  4. 4. Reported Improvements using Lean Six Sigma <ul><li>100% improvement in Labor standards. </li></ul><ul><li>90% improvement in product flow. </li></ul><ul><li>90% reduction of inventory. </li></ul><ul><li>50% reduction of scrap. </li></ul><ul><li>50% reduction of product development. </li></ul>
  5. 5. Where Do We Start Improving? <ul><li>Enterprise Level </li></ul><ul><li>R ecognize the true states of the business </li></ul><ul><li>D efine the plans to be in place to realize improvement of each state </li></ul><ul><li>M easure the business systems that support the plan </li></ul><ul><li>A nalyze the gaps in system performance benchmarks </li></ul><ul><li>I mprove system elements to achieve performance goals </li></ul><ul><li>C ontrol system-level characteristics that are critical to value </li></ul><ul><li>S tandardize the systems that prove to be best-in-class </li></ul><ul><li>I ntegrate best-in-class systems into the strategic planning framework </li></ul>
  6. 6. Key Success Factors <ul><li>Management involvement and direction. </li></ul><ul><ul><li>Executive sponsors - set direction/priorities for organization. </li></ul></ul><ul><ul><li>Champions - allocate resources to promote improvement. </li></ul></ul><ul><ul><li>Process Owners - coordinate process improvement and monitor . process. Work with Lean Six Sigma Black Belt. </li></ul></ul><ul><li>A cadre of trained specialists </li></ul><ul><li>Use of teamwork </li></ul><ul><li>Use of project management </li></ul><ul><li>Training </li></ul><ul><li>Humane treatment of people </li></ul><ul><li>Understandable problem solving methodology </li></ul>
  7. 7. When to Use Lean / Six Sigma Lean Six Sigma Primary Focus “ War on Waste” “ War on Variation” Main Savings Operating costs Cost of poor quality Project Completion 1week -3 months 2-6 months Selection of Projects Value Stream Mapping Various Customer Input Feedback Driver Demand Data Learning Curve Short Long Complexity Moderate High Justification Speed - Increase flow 3.4 defects per million opportunities
  8. 8. General Approach Problem / Goal Lean Six Sigma Massive waste Lean Large inventory Lean Long cycle time Lean Customer demand greater than manufacturing capacity Lean Human mistakes Lean Poor quality Six Sigma Excessive variation Six Sigma Complex problems Six Sigma Challenging root cause identification Six Sigma
  9. 9. Major Lean/ Six Sigma Tools Define Measure Analyze Improve Control Customer demand SIPOC 5 – Whys Kaizen Event Visual Controls Value Stream Mapping Time studies Cause-effect diagram 5S Standard work Charter – Problem Statement Prioritization matrices Regression analysis SMED Training requirements Communication Plans MSA studies Root cause analysis Work Flow Improvement Procedures/ instructions CTQ Issues Capability studies ANOVA Pull Systems Control Plans Business results Videotaping Multi-variable analysis DOE SPC Benchmarking Collecting data Hypothesis testing TOC TPM
  10. 10. Lean Six Sigma Competitive Advantage by Satisfying Customers Thank you for your time! <ul><li>For additional information please contact: </li></ul><ul><li>Terry P. Dockum </li></ul><ul><li>526 E. Hill Street </li></ul><ul><li>McPherson, KS 67460-3527 </li></ul><ul><li>Cell (620) 480-5440 </li></ul><ul><li>[email_address] </li></ul>

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