1. Variance Reduction International, Inc.
Lean Six Sigma
VarianceReduction.com
(909) 484-2950

2. Lean Six Sigma Principles
 Specify value in the eyes of the customer
 Identify value stream; eliminate waste and
variation
 Make value flow at pull of the customer
 Involve, Align & Empower Employees
 Continuously improve knowledge in pursuit
of perfection

3. Lean Sigma Process Improvement Cycle
VOICE OF STRATEGIC
CUSTOMER PLAN
Better
Gap Identified
BUSINESS
BUSINESS UNIT Faster
UCL OBJECTIVES SCORECARD
Avg
LCL Financials
BUSINESS
MEASURES
r ove VALUE STREAM
I mp
Co
nt
ro
SCORECARD
l
PROCESS FLOW
PROCESS
Tools &
Analyze
Methodology
e
UCL
fin
PROCESS
De
Avg
MEASURES
LCL
M ea X's Y's
sure

4. Deployment IPO
Executive Ow nership
Champion I nvolvement Projects Complet ed (% )
PROCESS
Expert/ Specialist Selection Cycle Time (months)
Project Selection Lean Sigma
Deployment ROI ($MM/ year)
Training / Mentoring
Accountability Customer Satisfaction (1-5)
Motivation / Rew ard Recognition (copied)
Leadership Team

5. Supplier
Better
Material Type
S y Yield
Amount of A
Temperature
Design Type Six Sigma
SOPs
ry
to In-
CODN (Finance) en Process
I nv Storag
Results Communication
Cost e
Driven IPO P
Team Dynamics Sp s roc
Pr
Diagram ac es
od
e
uc
Turnover
t
Rate
Cell Layout Design
Piece Flow
t
De hpu
l)
Lean
ia
Manpower
er
ug
el ay
at
ro
l
(M
Th
Setup SOPs
r
Time
bo
av
La
Tr
Maintenance SOPs
Pr
Se
Ca
Le ity
Cell Cleanliness
oc
tup
pa
ad
es
c
s

6. What is Lean and Six Sigma?
• Lean, pioneered by Toyota, • Six Sigma, developed by
focuses on the efficient Motorola, made famous by GE,
operation of the entire value it can be defined as a:
chain. – Measure of process
• Focus areas: capability
– Remove non-value added – Set of tools
steps to: – Disciplined methodology
• Reduce cycle time – Vision for quality
• Improve quality – Philosophy
– Align production with – Strategy
demand.
– Reduce inventory.
– Improve process safety and
efficiency.
Lean Sigma is a combination of two powerful and proven process
improvement methods Lean and Six Sigma, that builds on
existing organization capability in quality, statistics, and project
execution.

7. Lean Sigma: A Set of Tools
Measurement System Analysis
Glass Inspection Test
Operator 1 Operator 2 Operator 3
Item Test 1 Test 2 Test 1 Test 2 Test 2
Test 1
Use control charts to
Use control charts to 1
understand & identify
understand & identify
2
3
common & special
common & special 4
Map the process to
Map the process to causes
causes 5
determine where
determine where 6
defects are being
defects are being
7
Verify assessment/
created
8
Verify assessment/
created 9 measurement systems
measurement systems
1
0
RISK PRIORITY NUMBER (RPN) =
SEVERITY X 0CCURRENCEX ESCAPED DETECTION
Score Run A B AB y y y ... y s
Category 5 4 3 2 1 1 2 3
1 - - +
Severity Severe High Moderate Minor Negligible
(SEV) 2 - + -
Occurrence Very High High Moderate Low Very Low 3 + - -
(OCC)
4 + + +
Document failure modes
Document failure modes Designed experiments to
Designed experiments to
∆ ∆ ∆
Escapedfor products andModerate Low Very Low
for products andprocesses
Very High High
processes
ˆ
make process robust 2to A • B
y = y + A A + B B + AB
Detection
(DET) to identify defects' root cause
make process robust to
2 2
to identify defects' root cause variation
variation
ˆ δ δ δ
s = s +
¯ A A + B B + AB A • B
2 2 2

8. How is Lean Sigma different and similar to
past quality and statistical efforts?
• Sponsored and directed by • Uses many tools already
leadership familiar to many people –
• Aligned with business fishbone, process flow,
objectives and tactics SPC, brainstorming
• Focused on delivering • Aligned with quality efforts
business results
• Uses a logical problem
• Track record for delivering
solving approach that will
business results
• Disciplined and systematic
not be new to some
execution process • Aligned with past quality
• Brings in new tools to most and reliability efforts –
companies – DOE, TQM, Baldrige, Deming
hypothesis testing, FMEA,
Kanbans, PokaYoke

9. Focus Area of Lean and Six Sigma
Lean:
• Reduction of the “7 hidden wastes” or
non-value added activities to reduce cycle
time.
Six Sigma:
• Reduction of variability to improve
quality.
Both Lean and Six Sigma Tie
Improvements to $$$

10. Overlap of Lean and Six Sigma Tools
Cycle Time Reduction Variance Reduction
Mapping
IPO
Logical
CE
JIT Physical • PF
CNX
Time • Scorecard Testing
Quick
• SOP Correlations
Changeovers
• Mistake Hypothesis
Single Piece
Proofing DOE
Flow 5Ss • $$$
Visual FMEA
Lean Controls MSA
Six Sigma

11. Combining Lean and Six Sigma
Maximizes the Potential Benefits
Six Sigma – Improve Quality
Overall Yield as a Function of Sigma Level & Process Steps
Sigma Level
Lean – Remove Steps
No. of Parts or
Process Steps +/- 3 +/- 4 +/- 5 +/- 6
1 93.32% 99.379% 99.9767% 99.99966%
5 70.8% 96.9% 99.884% 99.998%
10 50.1% 94.0% 99.767% 99.997%
50 3.2% 73.2% 98.84% 99.983%
100 0.1% 53.6% 97.70% 99.966%
500 0.0% 4.4% 89.0% 99.8%
1,000 0.2% 79.2% 99.7%
5,000 0.0% 31.2% 98.3%
10,000 t 9.7% 96.7%
en
50,000 m 0.0% 84.4%
ove
100,000 pr 71.2%
500,000 e Im 18.3%
1,000,000 Driv 3.3%

12. Sigma Capability
The number of Sigmas between the center of a process and the nearest
specification limit
3 σ Process Centered
3 σ Process • We make more than
Lower Upper customer needs because
Specification Specification some of what we make
Limit Limit is waste
• Process is WIDER than
the specifications
Determined by Determined by
the customer the customer
WASTE
-6σ -5σ -4σ -3σ -2σ -1σ 0 +1σ +2σ +3σ +4σ +5σ +6σ
6 σ Process
3 σ Process has 66,807 6 σ Process Centered
dpm vs 3.4 from a 6 σ • We make as much as
process the customer needs
and have very little
waste
• Process FITS within
the specifications
-6σ -5σ -4σ -3σ -2σ -1σ 0 +1σ+2σ+3σ+4σ+5σ+6σ

13. The First Step is Process Knowledge
Long Term Success
Return on Investment
Process Improvement
The 1st Step is Process Knowledge

14. 80 Percent of the Gain with
20 Percent of the Complexity
Most of the 80%
improvement is
possible with Improvement
the basic
quality and
statistical tools.
20%
Tool Complexity

15. Sustained Improvements without
Capital Dollars
•Sustainable Results
•Process improvements from Lean Sigma Projects
are sustained.
•Typically, results are audited at 4 and 12 months
after implementing changes.
•Not Capital Driven
•Lean Sigma projects are NOT Capital driven.
•Most improvements are made by changes in the
SOP.

16. Lean Six Sigma Roadmap
DMAIC Strategy
• Define
– Identify and Prioritize Opportunities
– Select Your Project
– Define the Goals and Objectives
– Form Cross functional Team
– Understand Customer Requirements
• Measure
– Define and Analyze the Current Process
– Assess the Capability of the Measurement
Process
– Assess the Current Capability of the Process
– Variance Reduction

17. DMAIC Cont.
• Analyze
– Identify the Key Input Variables
– Discover the Relationship between the Inputs and
Outputs
– Identify the Root Causes of the Problems
• Improve
– Identify and Test the Proposed Solutions
– Re-assess Capability
– Implement Solution
• Control
– Document Results and Return on Investment
– Take Actions to Hold the Gains
– Celebrate and Communicate

18. Variance Reduction International, Inc.
President, Sally Ulman
Mary Ann “Sally” Ulman teaches and consults on the subject of applications of statistical methods. She is an experienced facilitator in the
areas of team building, problem solving, metric development, and implementation of process improvement strategies. Ms. Ulman left
Chevron, USA after sixteen years where she worked as a Quality Facilitator, Corrosion Engineer, and Industrial Water Treatment
Technologist throughout Central California and Sumatra, Indonesia. She has taught and consulted for Chevron, Caltex Pacific Indonesia,
GlaxoWellcome in Pakistan, GlaxoSmithKline in Bangkok, Kuala Lumpur, London, Jakarta and India, Texaco, Baker Petrolite, Aera
Energy, National Association of Corrosion Engineers, Farwest Corrosion, Mazda USA, Teac America, American Business Communications,
California Training Cooperative, Auto Meter, PLCs Plus, United Way Agencies and various public seminars. Her extensive consulting
background involves industrial and service applications of DOE, SPC, LeanSigma, reliability, management and team building techniques.
She received her B.A. in Physical Education from California State University, Northridge. She attained Six Sigma Black Belt certification
from University of Texas and Master Black Belt certification from Air Academy Associates. In addition she also holds a California Junior
College Teaching Credential, Corrosion Technologist and Coating Inspection Certification from the National Association of Corrosion
Engineers. She is now President of Variance Reduction International Inc. and works as an instructor and consultant for Air Academy
Associates and is the Six Sigma instructor at San Diego State University.