2. What is Lean (Six) Sigma (LSS)
A philosophy of doing business / a business
management strategy Lean Six Sigma combines the
two most important improvement trends of our time:
Reducing the variation of the process and making work
better (using Six Sigma methodology)
Making work faster and more efficient (using Lean
Manufacturing principles).
3. Six Sigma
A statistical approach developed in Motorola
Increase quality through reduction of variation in
manufacturing processes
Application of ‘tools’ PBC, 5Ys, Pareto analysis,
DMAIC, PDCA etc
4. Lean
W. Edwards Deming (October 14, 1900 – December 20,
1993) was an American statistician, professor, author,
lecturer, and consultant.
Japan
Ford Motor Company
Deming advocated that all managers need to have what he
called a System of Profound Knowledge, consisting of four
parts:
5. Appreciation of a system: understanding the overall
processes involving suppliers, producers, and
customers (or recipients) of goods and services
Knowledge of variation: the range and causes of
variation in quality, and use of statistical sampling in
measurements;
Theory of knowledge: the concepts explaining
knowledge and the limits of what can be known
Knowledge of psychology: concepts of human
nature.
6. Go to Gemba!
Japanese word
In business the value adding activities
occur in ‘Gemba’
Gemba is the source of all information!
8. Deployed Flow Chart
Customer Server Chef
Start Take seat Takes order
Cooked?
Place order
with chef
Pick up
order
Cook food
Plate up
food
Make and
serve drink
Toast?
Make and
serve toast
Cooked
?
Collect
and serve
Enjoy
breakfast
13. Developing ‘to be’ scenarios
Brainstorming ‘To be’
Produced high level DFC
PDCA – paper trials
Data collection
14. Voice of the customer
Wheel sessions
Questionnaires
Gemba
15. Data collection
DFC for ‘to be’
Test plan
Operational definitions
‘Tag points’
Assumptions
Roles
Trial lab layout
Observations
16. Central versus Local analysis
Pugh Matrix
Key Criteria Rating As-is Central Local analysis
Calibration standards 4 + s
Courier costs 3 _ +
Validation 5 + _
Equipment 4 s _
Sum of positives 2 1
Sum of negatives 1 2
Sum of sames s s
Weighted sum of positives 9 3
Weighted sum of
negatives
3 9
Total sum 6 6
17. Centralisation v Local
Cause and Effect
effect – TRTs greater than 24 hours, can not meet
require deadline
Trt exceeds 24
hours
19. Continuous Improvement
Kaizen
Kai = Change
Zen = Good (for the Better)
The Basic Philosophy Is to Involve All
Employees in Small, Daily Improvements
within their Work Areas.
20. Summary
Measurement should be the means to
improve understanding
People will do what is counted not what
counts
Use customer data to drive change
If you manage by targets people cheat!
21. “Efficiency is doing things right. Effectiveness is
doing the right thing.” -Zig Zigglar
(Author, salesperson and motivational speaker)
“The point is…
you’d better figure out what your Customers – the
Customers you want – value. Because that’s what
they’ll buy.
Anything else is a waste of their money, and they’ll
figure that out in a hurry.”
– Gordon Bethune (retired US airline executive. He was
the CEO of Continental Airlines from 1994 until his
retirement at the end of 2004)
