1. Presented By:
HAKEEM-UR-REHMAN
PhD (Candidate) – Management Science & Engineering
(Logistics & Operations Management)
Antai College of Economics & Management,
Shanghai Jiao Tong University, Shanghai, China
1
Webinar
on
LEAN SIX SIGMA: AN
OVERVIEW
http://www.acem.sjtu.edu.cn/en/ http://en.sjtu.edu.cn/

2. CONTENTS
2
 Lean Six Sigma – An Overview
oEvolution of Quality Field
oWhat is Lean & Six Sigma?
oLean Manufacturing: Types of Waste
oWhat is Six Sigma? (Y = f(x))
oComparison of Lean & Six Sigma
oLean & Six Sigma Performance Metrics
oLean Six Sigma / Six Sigma Methodologies & Frameworks
oDMAIC Methodology
oLSS & SS Team Structure
oLean Six Sigma Tools

3. EVOLUTION OF QUALITY FIELD
Product Insp. to Process to System to Culture to Performance
Control (Opr Mgt ) Change
TQM+ – Wave II
Lean Six
Sigma
Six Sigma
Knowledge
Mgt.
IT
TQM – Wave I
HRM
GROUP
DYNAMICS
Teams
Efficiency
BPR
TPM
JIT/MRP
QA
ISO9000
OPR MGT.
QC
SPC
Quality
Circles
Inspection/
Testing
Metrology
3

4. WHAT IS LEAN & SIX SIGMA?
4
LEAN: “A systematic approach to identify and eliminate waste (and non
value-added activities) through continuous improvement by flowing the
product at the pull of the customer in pursuit of perfection.”
SIX SIGMA: “A methodology that provides businesses with the tools to
improve the capability of their business processes. This increase in
performance and decrease in process variation lead to defect reduction and
improvement in profits, employee morale and quality of product.“

5. LEAN MANUFACTURING:
ELIMINATING THE WASTE
5
TOTAL LEAD TIME THROUGH THE VALUE CHAIN
1. Are they equal or not?
2. If not; Which is the most significant source of
waste?
TYPES OF WASTE (MUDA)

6. Which is the most significant source of waste?
Producing
TOO much
ADDITIONAL
transportation cost
Producing
TOO much
to sort, handle and store.
Overproduction is the disease, Defects are the cause?
TYPES OF WASTE (MUDA)
6

7. WHAT IS SIX SIGMA?
7
INPUTS OUTPUTS
“A blending of
inputs to
achieve the
desired
outputs”
PROCESS
People
Material
Equipment
Policies
Procedures
Methods
Environment
Perform a Service
Produce a Product
Complete a Task
Six Sigma is a PHILOSOPHY: This is generally expressed as y = f(x)
Y
Dependent
Output
Effect
Symptom
Monitor
X1 . . . XN
Independent
Input
Cause
Problem
Control

8. SIX SIGMA?...
8
MANUFACTURING
INJECTION
MOLDED PARTS
PROCESS
Type of Raw Material
Mold Temperature
Holding Pressure
Holding Time
Gate Size
Screw Speed
Moisture Content
Thickness of
Molded Part
% Shrinkage
from Mold Size
Number of
Defective Parts
Y=F(x)
ASSEMBLY
PROCESS
Method
Tool Type
Team Structure
Cycle Time
# of Defects
Sequencing of Steps

9. SIX SIGMA?...
9
1.5 Sigma
Shift
Theory

10. COMPARISON OF LEAN &
SIX SIGMA
10
SIX SIGMA LEAN
Objective Deliver value to customer Deliver value to customer
Theory Reduce variation Remove waste
Focus Problem focused Flow focused
Assumptions  A problem exists
 Figures and numbers are
valued
 System output improves if
variation in all processes
inputs is reduced
 Waste removal will
improve business
performance
 Many small
improvements are better
than system analysis

11. LEAN PROCESS
PERFORMANCE METRICS
 Bottleneck is the process step with the lowest capacity
 Cycle time is the time interval between the completion of two consecutive units (or batches)
 Takt Time: “the frequency at which a product or service must be competed in order to meet customer
needs” = (Available Time) / Demand
11
Example: Sasha and Andy have opened a hot dog stand at their local park. They offer a hot dog with choice
of fresh fruit and beverage to walk up customers between 10 AM and 2 PM. Customers put on their own
condiments. Customers say their hot dogs are good, but the wait is a little long. On average 50 customers per
day enters into the system.
Suppose:
Calculate the Takt time; Analysis the situation.
Cycle Time
(Seconds)
ANDY 224
SASHA 159
Total Cycle Time (Sec.) 446
Takt time = (Available time / Customer Demand)
= (4 hrs X 60 min./hr) / 50 Customers
= 4.8 Minutes
= 288 Seconds
ANDY SASHA
Series1 224 159
0
50
100
150
200
250
300
CycleTime(Seconds)
Cycle Vs Takt Time

12. WHAT IS SIGMA LEVEL?
A metric that indicate how well a process is performing. A higher sigma
level means higher performance . A Statistical measure of the capability
of a process.
12
DPU (Defects / Unit)
(# of Defects / # of Units)
Say:
10 Defects, 100 Pairs
DPU = 10/100 = 0.1 (10%)
DPO (Defects / Opportunity)
(# of Defects) / (# of Units X #
of Defect Opportunities / Unit)
10 Defects, 100 Pairs,
2 Opportunities / Carton
DPO = 10/(100 X 2) = 0.05 or
5% for each type
DPMO
(Defects / M. Opportunities)
DPO X 106
DPMO = 0.05 X 106 = 50,000
SIGMA
Consult Z–Table or Excel
Sigma Level
Yield =1–DPO =1–0.05 = 95 %
From M.S. Excel:
=Normsinv(%Yield)+1.5
50,000 DPMO = 3.145σ

13. Exercise: Calculate Sigma Level
1. Calculate the Sigma Level and DPMO of a telecom
network had 500 minutes of downtime in 2005.
 Product: Network (Connectivity)
 CTQ: Up time / Down time
 CTQ Measure: Minutes
 CTQ Specs: no downtime
 Defect measure: One minute of Network down
 Opportunity/Unit: 1
 Total Defects in 2005: 500 minutes
 Total Time (Minutes): 365days X 24hours X 60min. = 525,600
 DPU = 500/525,600 = 0.000951
 DPO = 500 / (525600 X 1) = 0.000951
 DPMO= 0.000951 X 106 = 951
 Yield = 1 – DPO = 1 – 0.000951 = 0.999049
 SIGMA LEVEL = Normsinv(%Yield)+1.5 = 4.6σ
WHAT IS SIGMA LEVEL?
2. If you have a total of 500 delivery orders and you
find out that 41 of those were delivered late, and 17
were incorrect orders.

14. Lean Six Sigma / Six Sigma
METHODOLOGIES
DMAIC
An improvement system for
existing processes falling
below specification and
looking for incremental
improvement
 Define
 Measure
 Analyze
 Improve
 Control
DMADV
An improvement system used
to develop new processes or
products at Six Sigma quality
levels
 Define
 Measure
 Analyze
 Design
 Verify

15. FRAMEWORKS
15
Six
Sigma
Lean Six
Sigma DFSS
VARIATION
Defects
Cost of Poor
Quality
WASTE / SPEED
Cycle Time,
Delivery
Cost of Operation
RELIABILITY &
ROBUSTNESS
Design Features
DMAIC DMAIC DMADV
SIPOC, CTQ,
SPC, FMEA,
DOE, QFD,
CoQ,
ANOVA,
Hypothesis,
Regression,
MSA (R & R)
5S, Value
Mapping,
Time Study,
TPM,
Cellular Prod.,
Takt Time,
Poke Yoke
VOC, QFD,
FMEA, CTQ,
Gage R & R,
DOE, Reliability
Analysis, SPC,
Systems
Engineering
PROGRAM
FOCUS /
THEME
METHODOLOGY
TOOLS

16. DMAIC METHODOLOGY
16
 DEFINE: "What is important to the business?"
 The problem is defined, including who the customers are and what they want, to
determine what needs to improve.
 Expected benefits for the project sponsor & Time line
 MEASURE: "How are we doing with the current process?"
 The process is measured, data are collected, and compared to the desired state.
 ANALYZE: "What is wrong with the current process?"
 The data are analyzed in order to determine the cause of the problem.
 IMPROVE: "What needs to be done to improve the process?"
 The team brainstorms to develop solutions to problems; changes are made to the
process, and the results are measured to see if the problems have been eliminated.
If not, more changes may be necessary.
 CONTROL: "How do we guarantee performance so that the improvements are
sustained over time?"
 If the process is operating at the desired level of performance, it is monitored to
make sure the improvement is sustained and no unexpected and undesirable
changes occur.

17. Team STRUCTURE
17
Quality Council / Steering
Committee
Champions
Master
Black Belt
Black Belt Black Belt
Green Belt Green Belt Green Belt Green Belt
HOD’S /
Owners
Sponsors
Process Owner
Coach
Trainers
Team
Leaders
Team
Members
Project
Managers

18. Lean Six Sigma Tools
18
 Quality Function Deployment
 Kano Model
 Process Flow Diagram
 SIPOC Diagram
 Cause & Effect Diagram
 Pareto Chart
 Scatter Plot
 Graphs
 Histograms
 Box & Whisker's Plot
 Control Charts
 Process Capability Analysis
 Testing of Hypothesis
 Regression & Correlation Analysis
 Measurement System Analysis
 Value Stream Mapping
 KaiZen
 TPM
 SMED (Single Minute Exchange Device)
 Takt Time
 Poka Yoke
 Bottleneck Analysis
 Design of Experiment
 5 S
 Kanban
 Andon
 Theory of Constraint
 Failure Mode & Effect Analysis
 7 New Management Tools
 OEE

19. QUESTIONS
19