RDrew Six Sigma Overview


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RDrew Six Sigma Overview

  1. 1. <ul><li>Lean Six Sigma </li></ul><ul><li>Overview </li></ul>Presented by Ron Drew, PMP
  2. 2. W. Edwards Deming “ Eighty-Five percent of the reasons for failure to meet customer expectations are related to deficiencies in the Systems and Processes rather than employees. The role of leadership is to change the process rather than badger individuals to do it better.”
  3. 3. Industry Snippets
  4. 4. What is Six Sigma <ul><li>What gets measured gets improved! </li></ul><ul><li>Six Sigma is a business strategy </li></ul><ul><ul><li>To remove variation in the processes </li></ul></ul><ul><ul><li>To improve the processes to: </li></ul></ul><ul><ul><ul><li>Raise Quality </li></ul></ul></ul><ul><ul><ul><li>Lower Costs </li></ul></ul></ul><ul><ul><ul><li>Make Customers More Satisfied </li></ul></ul></ul><ul><li>Six Sigma is a philosophy and mindset </li></ul><ul><ul><li>It is Data-driven decision making </li></ul></ul><ul><ul><li>It is a Common Vocabulary </li></ul></ul><ul><li>Six Sigma is a Statistical Measurement </li></ul><ul><ul><li>Works on a statistical scale of Defects per Million (DPM) </li></ul></ul><ul><ul><li>It tells how good the products and services really are by designating the distribution about the average of any process or procedure </li></ul></ul>
  5. 5. What is Six Sigma Six Sigma Numbers Most processes and companies operate at Three(3) capability 2 Six 116x 233 Five 27x 6,210 Four 10x 66,807 Three 4x 308,538 Two 2x 691,462 One Effort to Improve 1 Sigma Defects per Million (DPM) Sigma Level
  6. 6. What is Six Sigma Two Methodologies: DMAIC – Defect reduction within an existing product or process. DMADV – When a product or process is first being designed. Define Measure Analyze Improve Control Define Measure Analyze Design Validate
  7. 7. What is Six Sigma <ul><li>DMAIC Overview </li></ul><ul><li>Define </li></ul><ul><ul><li>Project Charter </li></ul></ul><ul><ul><li>Identify and validate customers’ needs and requirements </li></ul></ul><ul><ul><li>Create a high level picture of the process targeted for improvement </li></ul></ul><ul><li>Measure </li></ul><ul><ul><li>Create a data collection plan </li></ul></ul><ul><ul><li>Implement plan and return with a baseline performance sigma </li></ul></ul><ul><li>Analyze </li></ul><ul><ul><li>Examine the data </li></ul></ul><ul><ul><li>Watch the process </li></ul></ul><ul><ul><li>Determine root cause </li></ul></ul><ul><li>Improve </li></ul><ul><ul><li>Generate Solutions </li></ul></ul><ul><ul><li>Select Solutions </li></ul></ul><ul><ul><li>Implement Solutions </li></ul></ul><ul><li>Control </li></ul><ul><ul><li>Pick the right control method </li></ul></ul><ul><ul><li>Document the response plan </li></ul></ul>50% of EVERY project should be spent in DM&A
  8. 8. What is Six Sigma
  9. 9. Define Phase of Lean Six Sigma
  10. 10. Define Phase of Lean Six Sigma
  11. 11. Define Phase of Lean Six Sigma
  12. 12. Measure Phase of Lean Six Sigma
  13. 13. Measure Phase of Lean Six Sigma
  14. 14. Measure Phase of Lean Six Sigma
  15. 15. Measure Phase of Lean Six Sigma
  16. 16. Lean Six Sigma Analyze Phase
  17. 17. Lean Six Sigma Analyze Phase
  18. 18. Lean Six Sigma Analyze Phase
  19. 19. Lean Six Sigma Analyze Phase
  20. 20. Lean Six Sigma Improve Phase
  21. 21. Lean Six Sigma Improve Phase
  22. 22. Lean Six Sigma Improve Phase
  23. 23. Lean Six Sigma Improve Phase
  24. 24. Lean Six Sigma Control Phase
  25. 25. Lean Six Sigma Control Phase
  26. 26. What is Six Sigma
  27. 27. Taiichi Ohno “ All we are doing is looking at a timeline from the moment the customer gives us an order to the point when we collect the cash. And we are reducing that timeline by removing the non-value added wastes.” Lean is the continuous focus on eliminating waste driven by customer satisfaction. What is Lean?
  28. 28. Lean – Cycle Time (Kanban) Lean is used to analyze and attack the lack of coordination, flow and waste What is Lean? Work/ Value Add Time Work/ Non-Value Add Time Work/ Value Add Time Work/ Non-Value Add Time Work/ Value Add Time Work/ Non-Value Add Time Work/ Value Add Time Work/ Non-Value Add Time Work/ Value Add Time Work/ Non-Value Add Time Work/ Value Add Time NVAT Work/ Value Add Time Work/ Value Add Time Work/ Value Add Time Work/ Value Add Time NVAT NVAT NVAT Before After Lean Principle: Spend resources to improve Kanban (Cycle Time) Lead Time/ Cycle Time
  29. 29. Five Principles of Lean <ul><li>Specify Value </li></ul><ul><li>Specify value from the standpoint of the end customer </li></ul><ul><li>Map the Value Stream </li></ul><ul><li>Map all of the steps both value added & non-value added that bring a product/service to the customer </li></ul><ul><li>Establish Flow </li></ul><ul><li>Specify value from the standpoint of the end customer </li></ul><ul><li>Implement Pull </li></ul><ul><ul><li>Nothing is done by the upstream process until the downstream customer signals the need </li></ul></ul><ul><li>Pursue Perfection </li></ul><ul><li>The complete elimination of waste so all activities create value for the customer </li></ul>What is Lean?
  30. 30. Specify Value <ul><li>Value Added Process: </li></ul><ul><li>Anything the customer is willing to PAY FOR </li></ul><ul><li>Three criteria MUST be met: </li></ul><ul><ul><li>Changes the shape or form of the process/product </li></ul></ul><ul><ul><li>The customer cares about it </li></ul></ul><ul><ul><li>It is done right the first time </li></ul></ul><ul><li>Non-Value Added Process: </li></ul><ul><li>Those process steps that take time, resources, or space but do not add value to the product/service </li></ul><ul><li>Corporate compliance in included here, as a necessary, but non-value added step </li></ul><ul><li>Other examples: quality assurance and any “re” steps </li></ul>What is Lean?
  31. 31. Map the Value Stream <ul><li>Map all of the actions both value added and non-value added that are required to bring a product or service BACKWARDS from the customer to process initiation. </li></ul><ul><li>Elements </li></ul><ul><li>Examines the product/document flow and information flow </li></ul><ul><li>Examines non-value added and wait time </li></ul><ul><li>Current State (AS-IS) and Future State (TO-BE) are developed using a standard unit of time </li></ul><ul><li>Site plans are developed to identity “Kaizen” (action workout) improvement opportunities </li></ul>What is Lean?
  32. 32. Value Stream vs. Process Map <ul><li>Process Mapping illustrates the steps in a process </li></ul><ul><li>Value Stream Mapping also tracks </li></ul><ul><li>Material flow and material resource planning </li></ul><ul><li>Information flow (who needs to be notified) </li></ul><ul><li>Time </li></ul><ul><ul><li>Value Added Time materially changing the product/service </li></ul></ul><ul><ul><li>Non-Value Added Time </li></ul></ul><ul><ul><ul><li>Change-Over Time </li></ul></ul></ul><ul><ul><ul><li>Wait Time </li></ul></ul></ul><ul><ul><ul><li>Moving Time </li></ul></ul></ul>What is Lean?
  33. 33. Establish Flow What is Lean? <ul><li>Producing one transaction at a time with each item passed immediately from one process step to the other without waiting. </li></ul><ul><li>Elements </li></ul><ul><li>The work does not stop – make one, move one (identity and remove the bottlenecks) </li></ul><ul><li>No inventory is created – no batching (inventory is a sign of bottlenecks) </li></ul><ul><li>Move away from departmental or functional processing of transactions – empower employees to make decisions </li></ul>
  34. 34. Implement Pull What is Lean? <ul><li>Pull systems are used to maintain level operations. </li></ul><ul><li>Some processes cannot be operated as a flow: </li></ul><ul><li>Long distances between processes (look for co-location opportunities or ways to reduce batch size) </li></ul><ul><li>Unreliable processes (look for error-proofing opportunities) </li></ul><ul><li>Long change-over-times </li></ul>
  35. 35. <ul><li>Root Cause Analysis using the 6 Ms </li></ul><ul><li>7 Types of Waster (Muda) </li></ul><ul><li>5 “S” Organization </li></ul><ul><li>Action Work-out (Kaizen) </li></ul><ul><li>Error Proofing (Poke-yoke) </li></ul>Lean Tools
  36. 36. Root Cause Analysis Lean Tools <ul><li>The 6 Ms can help you define the WHY. The areas of variation and waste in your processes. </li></ul><ul><ul><ul><li>Machine </li></ul></ul></ul><ul><ul><ul><li>Methods </li></ul></ul></ul><ul><ul><ul><li>Materials </li></ul></ul></ul><ul><ul><ul><li>Measurement </li></ul></ul></ul><ul><ul><ul><li>Man (now sometimes called P for Person “5 Ms and a P” </li></ul></ul></ul><ul><ul><ul><li>Mother Nature </li></ul></ul></ul><ul><li>Brainstorm RCA with EVERYONE involved in the process! </li></ul>
  37. 37. 7 Types of Waste (Muda) Lean Tools <ul><ul><ul><li>Extra Processing – Waste in the form of non-value adding activities performed in the process. </li></ul></ul></ul><ul><ul><ul><ul><ul><li>Example: revise, re-design, re-work, re-tool </li></ul></ul></ul></ul></ul><ul><ul><ul><li>Waiting – Time spent in the process waiting for another step to complete or a decision to be made. </li></ul></ul></ul><ul><ul><ul><li>Motion – Physical human motion that does not add value to the process. </li></ul></ul></ul><ul><ul><ul><ul><ul><li>Example: moving parts/documents from one location to another. </li></ul></ul></ul></ul></ul><ul><ul><ul><li>Over-Production – Creating parts ahead of time, due to mismatch in production schedules. Producing more than the customer needs. </li></ul></ul></ul><ul><ul><ul><li>Inventory – Holding additional materials on shelves, racks and floors </li></ul></ul></ul><ul><ul><ul><li>Transportation – Unnecessary movement of parts, equipment. Transmitting unnecessary email and data. </li></ul></ul></ul><ul><ul><ul><li>Defects – Defective work or excessive inspection. </li></ul></ul></ul>
  38. 38. Lean Tools 5 “S” - Organization Sustain!! <ul><li>Keys: </li></ul><ul><li>Assign ownership </li></ul><ul><li>Use checklists </li></ul><ul><li>Color code </li></ul><ul><li>Keys: </li></ul><ul><li>Must be done on a regular basis </li></ul><ul><li>Cleaning tools & supplies available at point of usage </li></ul><ul><li>Assign specific individuals to tasks </li></ul><ul><li>Designate specific cleaning time </li></ul><ul><li>Arrange items to be: </li></ul><ul><li>Easy to find – visual controls </li></ul><ul><li>Easy to use – immediate retrieval </li></ul><ul><li>Easy to return – immediate return </li></ul><ul><li>Key Questions: </li></ul><ul><li>What is it for? </li></ul><ul><li>Why do I have it? </li></ul><ul><li>How often do I use it? </li></ul><ul><li>Does someone else have the same thing? </li></ul><ul><li>Develop and implement best practices. </li></ul><ul><li>Visual Workspace </li></ul><ul><li>Visual Standards </li></ul><ul><li>Three phases: </li></ul><ul><li>Daily cleanliness </li></ul><ul><li>Cleanliness Inspections </li></ul><ul><li>Cleanliness Maintenance </li></ul>Organize: (Arrange and label) remaining needed items to maximize efficiency. Distinguish: Between what is needed and what is not. “ When in doubt, move it out” Standardize Shine Sort / Straighten Store
  39. 39. Action Work-Out (Kaizen) Lean Tools <ul><ul><ul><li>Why? – </li></ul></ul></ul><ul><ul><ul><ul><li>It brings stakeholders together to see the “Big Picture” end-to-end process. </li></ul></ul></ul></ul><ul><ul><ul><li>Who? – </li></ul></ul></ul><ul><ul><ul><ul><li>30% Management – they can make it happen </li></ul></ul></ul></ul><ul><ul><ul><ul><li>30% Subject Matter Experts (SME) – they know how it is done </li></ul></ul></ul></ul><ul><ul><ul><ul><li>30% Personnel outside the process – they ask why is it done that way? </li></ul></ul></ul></ul><ul><ul><ul><ul><li>10% Black Belts – for Facilitators and Scribes </li></ul></ul></ul></ul><ul><ul><ul><li>What? – </li></ul></ul></ul><ul><ul><ul><ul><li>Map and document current (as-is) and future (to-be) state process </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Identify Value Stream to Customer </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Define relationships among key process points </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Remove bottlenecks </li></ul></ul></ul></ul>
  40. 40. Error Proofing Lean Tools <ul><li>Poke-yoke definition: </li></ul><ul><ul><li>The removal of all potential causes of error through design, process or mistake-proofing devices to ensure consistent process results. </li></ul></ul><ul><ul><li>Attitude: </li></ul></ul><ul><ul><li>I do not ACCEPT defects </li></ul></ul><ul><ul><li>I do not MAKE defects </li></ul></ul><ul><ul><li>I do not PASS ON defects </li></ul></ul>
  41. 41. Recap ..What is Lean Six Sigma
  42. 42. Why is Lean Six Sigma so Successful?
  43. 43. When Do We Use Lean/Six Sigma?
  44. 44. Why Do Companies Fail?
  45. 45. Perspectives of Lean Six Sigma
  46. 46. Perspectives of Lean Six Sigma
  47. 47. Perspectives of Lean Six Sigma
  48. 48. Perspectives of Lean Six Sigma
  49. 49. Lean Six Sigma Practice
  50. 50. Lean Six Sigma Training <ul><li>Lean.org </li></ul><ul><li>Certification: </li></ul><ul><ul><li>Training: www.villanovau.com (16 weeks) </li></ul></ul><ul><ul><li>Exam: American Society for Quality – asq.org </li></ul></ul>
  51. 51. Thank You for Your Attention <ul><li>Questions? </li></ul><ul><li>[email_address] </li></ul>