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LEAN	
  is	
  simply	
  a	
  method	
  of	
  
streamlining	
  a	
  process,	
  resul5ng	
  in	
  
increased	
  revenue,	
  reduced	
  costs	
  and	
  
improved	
  customer	
  sa5sfac5on.	
  
SIX	
  SIGMA	
  is	
  named	
  a8er	
  a	
  sta5s5cal	
  
concept	
  where	
  a	
  process	
  only	
  produces	
  
3.4	
  defects	
  per	
  million	
  opportuni5es.	
  
Six	
  Sigma	
  can	
  therefore	
  be	
  also	
  thought	
  
of	
  as	
  a	
  goal,	
  where	
  processes	
  not	
  only	
  
encounter	
  less	
  defects,	
  but	
  do	
  so	
  
consistently.	
  
Basically,	
  Six	
  Sigma	
  reduces	
  varia5on,	
  
so	
  products	
  or	
  services	
  can	
  be	
  delivered	
  
as	
  expected	
  reliably.	
  
One	
  defect	
  for	
  every	
  294,000	
  units	
  
Today’s	
  manufacturing	
  and	
  business	
  
environments	
  are	
  reaching	
  a	
  point	
  that	
  
compe55on	
  for	
  survival	
  and	
  market	
  
share	
  is	
  an	
  obliga5on.	
  
	
  
Tracking	
  the	
  global	
  economy	
  will	
  show	
  
that	
  being	
  good	
  is	
  not	
  enough,	
  
therefore	
  each	
  organiza5on	
  really	
  strive	
  
for	
  excellence	
  if	
  want	
  to	
  stay	
  in	
  the	
  
market.	
  
Every	
  single	
  organiza5on	
  
is	
  looking	
  for	
  one	
  single	
  
outcome...	
  
PROFIT	
  
	
  
(And	
  keep	
  your	
  customers	
  
sa5sfied	
  and	
  profitable)	
  
P	
  -­‐	
  Process	
  excellence	
  
R	
  -­‐	
  Resources	
  Management	
  
O	
  -­‐	
  Oriented	
  to	
  a	
  Goal	
  
F	
  -­‐	
  Financially	
  Strong	
  
I	
  -­‐	
  Innova5ve	
  –	
  to	
  stay	
  ahead	
  of	
  compe55on	
  
T	
  -­‐	
  Timely	
  deployment	
  of	
  strategies	
  
Tradi5onal	
  management,	
  manufacturing	
  
processes,	
  and	
  other	
  historic	
  approaches,	
  
are	
  no	
  longer	
  enough..	
  
With	
  origins	
  in	
  Japan,	
  LEAN	
  SIX	
  SIGMA	
  is	
  a	
  
more	
  effec5ve	
  way	
  of	
  living	
  in	
  the	
  business	
  
environment.	
  
	
  
Its	
  focused	
  on	
  keeping	
  your	
  customers	
  
profitable	
  by	
  using	
  your	
  product	
  or	
  service.	
  
Origins	
  in	
  Toyota,	
  circa	
  1955	
  	
  
Formalized	
  in	
  1986	
  by	
  Motorola	
  and	
  	
  
made	
  famous	
  by	
  Jack	
  Welch	
  in	
  GE	
  1995.	
  
	
  
The	
  way	
  of	
  doing	
  business...	
  	
  
Its	
  also	
  called	
  “Material	
  and	
  Informa5on	
  Flow	
  
Mapping”	
  
	
  
Used	
  by	
  Toyota	
  Motors	
  to	
  show	
  both	
  current	
  
and	
  ideal	
  states	
  as	
  part	
  of	
  the	
  lean	
  
implementaAon	
  process	
  
The	
  history	
  of	
  manufacturing	
  has	
  moved	
  from	
  
	
  
CRAFT	
  industries	
  	
  
to	
  
MASS	
  manufacturing	
  	
  
to	
  
LEAN	
  business	
  prac5ces.	
  
	
  
LEAN	
  business	
  prac5ce	
  dictates	
  a	
  need	
  to	
  
change	
  and	
  be	
  profitable.	
  
	
  
Process	
  Analysis	
  is	
  the	
  founda5on	
  
toward	
  achieving	
  Process	
  Excellence.	
  
	
  
	
  
A	
  need	
  for	
  change	
  is	
  usually	
  characterized	
  by:	
  
	
  
• “Q.A.”	
  departments	
  dicta5ng	
  policy 	
  
• Large	
  produc5on	
  runs	
  with	
  wastage	
  
• Large	
  centralized	
  stores	
  with	
  slow	
  turn	
  around	
  
• Customer	
  dissa5sfac5on	
  
• Enormous	
  part	
  and	
  process	
  varia5on	
  
• Measured	
  in	
  hours	
  instead	
  of	
  minutes	
  
• Order	
  entry	
  5mes	
  measured	
  other	
  than	
  in	
  
minutes	
  	
  
• Product	
  margins	
  eroded	
  by	
  increasing	
  opera5ng	
  
costs	
  	
  
• Ever-­‐increasing	
  compe55ve	
  pressures	
  
What	
  must	
  change?	
  
	
  
Quality	
  -­‐	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  How	
  to	
  improve	
  it?	
  
Cost	
  -­‐	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  How	
  to	
  control	
  it?	
  
On-­‐Ame	
  Delivery	
  -­‐	
  How	
  to	
  ensure	
  it?	
  
	
  
	
  
Failure	
  to	
  improve	
  in	
  all	
  three	
  areas	
  means	
  a	
  
loss	
  of	
  compe55veness	
  in	
  today’s	
  global	
  
marketplace	
  
DO	
  NOT	
  set	
  incremental	
  improvement	
  goals	
  
over	
  previous	
  performance,	
  rather	
  –	
  
Think	
  of	
  where	
  we	
  need	
  to	
  be:	
  
	
  
 
Con5nually	
  declining	
  costs	
  	
  
Zero	
  defects	
  
Minimal	
  inventories	
  
Fully	
  sa5sfied	
  customers	
  
LEAN:	
  a	
  definiAon	
  
	
  
An	
  integrated	
  approach	
  to	
  u5lizing	
  Capital,	
  
Materials,	
  and	
  Human	
  resources	
  to	
  produce	
  
just	
  what	
  is	
  needed,	
  when	
  it	
  is	
  needed.	
  In	
  the	
  
amount	
  needed	
  with	
  minimum	
  Materials,	
  
Equipment,	
  Labour	
  and	
  Space.	
  
	
  
J	
  I	
  T	
  
LEAN:	
  a	
  definiAon	
  
	
  
An	
  integrated	
  approach	
  to	
  u5lizing	
  Capital,	
  
Materials,	
  and	
  Human	
  resources	
  to	
  produce	
  
just	
  what	
  is	
  needed,	
  when	
  it	
  is	
  needed.	
  In	
  the	
  
amount	
  needed	
  with	
  minimum	
  Materials,	
  
Equipment,	
  Labour	
  and	
  Space.	
  
	
  
IdenAfy	
  and	
  eliminate	
  waste.	
  
Develop	
  the	
  ability:	
  
	
  
• To	
  recognize	
  and	
  iden5fy	
  waste	
  	
  
• To	
  have	
  to	
  courage	
  to	
  call	
  it	
  waste	
  	
  
• To	
  have	
  the	
  desire	
  to	
  eliminate	
  it	
  	
  
• Eliminate	
  the	
  waste	
  
• Truly	
  understand	
  that	
  waste	
  Raises	
  costs	
  
• Waste	
  produces	
  no	
  corresponding	
  benefit	
  	
  
• Waste	
  threatens	
  all	
  of	
  our	
  jobs	
  
Examples	
  of	
  Lean	
  targets:	
  
	
  
• Defects	
  reduced	
  by	
  20%	
  per	
  year	
  
• Delivery	
  Lead	
  Times	
  reduced	
  by	
  more	
  than	
  75%	
  	
  
• On	
  Time	
  Delivery	
  improved	
  to	
  99+%	
  
• Produc5vity	
  (sales	
  per	
  employee)	
  increases	
  of	
  
15-­‐25%	
  per	
  year	
  
• Inventory	
  (working	
  capital)	
  reduc5ons	
  of	
  more	
  
than	
  75%	
  
• Return	
  on	
  Assets	
  improvement	
  of	
  100%+	
  
To	
  do	
  PROFIT	
  	
  
	
  
we	
  can	
  use	
  the	
  Lean	
  Six	
  Sigma	
  Strategy	
  ...	
  
	
  
...	
  for	
  turning	
  manufacturing	
  and	
  business	
  
processes	
  into	
  compe55ve	
  weapons.	
  
Lean	
  Six	
  Sigma	
  Benefits:	
  
	
  
The	
  Benefits	
  Always	
  Include	
  Increased	
  Market	
  
Share,	
  Lowered	
  Cost	
  Higher	
  Profits	
  And	
  
Happier	
  Customers	
  (And	
  Shareholders)	
  
	
  
Every	
  Successful	
  Business	
  That	
  Competes	
  In	
  An	
  
Over-­‐capacity	
  Or	
  Price-­‐	
  sensi5ve	
  Market	
  Is	
  
Doing	
  “Lean”	
  Whether	
  They	
  Know	
  It	
  Or	
  Not	
  
The	
  Lean	
  Six	
  Sigma	
  Strategy	
  has	
  4	
  Main	
  Goals:	
  
	
  
	
  
IMPROVE	
  QUALITY	
  
ELIMINATE	
  WASTE	
  
REDUCE	
  LEAD	
  TIME	
  
REDUCE	
  TOTAL	
  COSTS	
  
With	
  a	
  well-­‐planned	
  implementaAon,	
  
overall	
  expected	
  RESULTS	
  may	
  include	
  a	
  ...	
  	
  
	
  
35%	
  to	
  50%	
  reduc5on	
  in	
  lost	
  5me	
  
15%	
  to	
  30%	
  decrease	
  in	
  scrap	
  &	
  rework	
  	
  
25%	
  to	
  40%	
  reduc5on	
  in	
  total	
  cycle	
  5me	
  
	
  
(within	
  12	
  months)	
  
	
  
LEAN	
  	
  	
  	
  	
  	
  	
  +	
  	
  	
  	
  	
  SIX	
  SIGMA	
  	
  	
  	
  	
  	
  =	
  	
  	
  	
  	
  LEAN	
  SIX	
  SIGMA	
  
Lean	
  reduces	
  
waste	
  by	
  	
  
streamlining	
  
a	
  process	
  
Six	
  Sigma	
  reduces	
  
defects	
  by	
  	
  
effec5vely	
  solving	
  
problems	
  
LEAN	
  accelerates	
  SIX	
  SIGMA	
  
Solving	
  problems	
  and	
  
Improving	
  processes	
  is	
  
Faster	
  and	
  more	
  efficient	
  
	
  
LEAN	
  Philosophy	
  and	
  Key	
  Concepts	
  
	
  
1. The	
  5	
  core	
  principles	
  of	
  Lean	
  
2. Define	
  value-­‐added	
  and	
  non-­‐valued	
  
added	
  ac5vity	
  
3. Define	
  the	
  7	
  most	
  common	
  types	
  of	
  
waste	
  and	
  their	
  causes.	
  
4. Review	
  a	
  systema5c	
  approach	
  to	
  discover	
  
waste	
  within	
  a	
  process.	
  
The	
  5	
  Core	
  Principles	
  of	
  Lean	
  	
  
	
  
1. Specify	
  value	
  in	
  the	
  eyes	
  of	
  the	
  customer	
  
2. Iden5fy	
  value	
  and	
  eliminate	
  waste	
  
3. Make	
  value	
  flow	
  at	
  pull	
  of	
  the	
  customer	
  
4. Involve	
  &	
  empower	
  employees	
  
5. Con5nuously	
  improve	
  in	
  pursuit	
  of	
  perfec5on	
  
Value	
  Added	
  AcAvity	
  
	
  
An	
  ac5vity	
  that	
  changes	
  the	
  size,	
  shape,	
  fit,	
  form,	
  
or	
  func5on	
  of	
  material	
  or	
  informa5on	
  (for	
  the	
  
first	
  5me)	
  to	
  sa5sfy	
  the	
  customer.	
  
	
  
Non-­‐Value	
  Added	
  AcAvity	
  
	
  
Those	
  ac5vi5es	
  that	
  consume	
  5me	
  or	
  resources,	
  
but	
  do	
  not	
  add	
  value	
  in	
  the	
  eyes	
  of	
  the	
  customer.	
  
Value	
  Added	
  AcAvity	
  
	
  
Any	
  ac5vity	
  or	
  opera5on	
  performed	
  that	
  helps	
  
transform	
  a	
  product	
  or	
  service	
  from	
  its	
  raw	
  state	
  
into	
  its	
  finished	
  form	
  that	
  is:	
  
	
  
• Completed	
  right	
  the	
  first	
  5me.	
  
• Any	
  ac5vity	
  customer	
  is	
  prepared	
  to	
  pay	
  for.	
  	
  
• Delivered	
  in	
  conformance	
  to	
  specifica5on.	
  
	
  
Non-­‐Value	
  Added	
  AcAvity	
  
	
  
Any	
  ac5vity	
  that	
  doesn’t	
  help	
  to	
  transform	
  a	
  
product	
  or	
  service	
  into	
  its	
  final	
  form.	
  Ac5vity	
  not	
  
performed	
  right.	
  Ac5vity	
  customer	
  not	
  willing	
  to	
  
pay	
  for.	
  This	
  includes:	
  
• Unnecessary	
  process	
  steps	
  
• Movement	
  of	
  inventory,	
  paperwork,	
  etc.	
  
• Re-­‐work,	
  correc5ons,	
  etc.	
  
• Storage	
  between	
  opera5ons,	
  batching	
  inventory	
  	
  
• Wait	
  5mes,	
  delay	
  5mes,	
  idle	
  5mes	
  
7	
  most	
  common	
  wastes	
  
	
  
Iden5fy	
  and	
  reduce:	
  
	
  
• Defects	
  (repair,	
  rework,	
  scrap)	
  
• Overproduc5on	
  (inventory)	
  
• Transporta5on	
  (conveyance)	
  
• Wai5ng	
  (queue	
  5me)	
  
• Inspec5on	
  (reliance	
  on	
  mass	
  inspec5on/	
  
verifica5on)	
  
• Mo5on	
  (parts,	
  paper,	
  people)	
  
• Process,	
  itself	
  (over-­‐processing,	
  long	
  cycles)	
  
7	
  most	
  common	
  wastes	
  
	
  
3	
  MAIN	
  CATEGORIES:	
  
	
  
PEOPLE	
  	
  
	
  
PROCESS	
  
	
  
PRODUCT	
  
	
  
7	
  most	
  common	
  wastes	
  
	
  
1.	
  MOTION	
  
	
  
Caused	
  by	
  incorrect	
  office	
  and	
  space	
  layouts	
  
Lack	
  of	
  proximity	
  of	
  machines	
  	
  
Off-­‐line	
  &	
  unavailable	
  resources	
  
	
  
This	
  increases	
  produc5on	
  5me	
  
7	
  most	
  common	
  wastes	
  
	
  
2.	
  WAITING	
  TIME	
  
	
  
Caused	
  by	
  wai5ng	
  staff,	
  machines,	
  materials	
  	
  
Long	
  set-­‐ups	
  and	
  lead	
  5mes	
  
	
  
Decreases	
  produc5vity	
  &	
  wastes	
  personnel	
  
resources	
  
7	
  most	
  common	
  wastes	
  
	
  
3.	
  OVER-­‐PRODUCTION	
  
	
  
Caused	
  by	
  large	
  batches,	
  raw	
  material	
  stocks	
  	
  
High	
  WIP	
  (work	
  in	
  process)	
  ,finished	
  goods	
  &	
  stocks	
  
Making	
  for	
  the	
  sake	
  of	
  it	
  
Ignoring	
  customer	
  demands	
  
	
  
Ties	
  up	
  capital,	
  diverts	
  produc5on	
  from	
  customer	
  
requirements,	
  loss	
  of	
  inventories	
  
7	
  most	
  common	
  wastes	
  
	
  
4.	
  PROCESSING	
  TIME	
  
	
  
Caused	
  by	
  Long	
  cycle	
  5mes,	
  	
  
process,	
  itself	
  	
  
Reduced	
  efficiency	
  -­‐	
  over	
  processing	
  	
  
High	
  overall	
  lead	
  5mes	
  
7	
  most	
  common	
  wastes	
  
	
  
5.	
  DEFECTS	
  
	
  
Caused	
  by	
  Long	
  delays	
  for	
  rec5fica5on	
  	
  
Costly	
  rework	
  
Dissa5sfied	
  customers	
  
	
  
Leads	
  to	
  Scrap,	
  rework	
  and	
  returns	
  
7	
  most	
  common	
  wastes	
  
	
  
6.	
  INSPECTION	
  
	
  
Caused	
  by	
  approvals	
  of	
  approvals	
  
High	
  number	
  of	
  verifica5on	
  steps	
  	
  
Reliance	
  on	
  mass	
  inspec5on	
  techniques	
  
7	
  most	
  common	
  wastes	
  
	
  
7.	
  TRANSPORTATION	
  
	
  
Caused	
  by	
  Unnecessary	
  movement	
  	
  
Extra	
  handling	
  
	
  
Leads	
  to	
  unnecessarily	
  long	
  produc5on	
  5mes	
  &	
  
extra	
  WIP	
  
7	
  most	
  common	
  wastes	
  
	
  
	
  
DOTWIMP	
  
	
  
Defects-­‐Overproduc5on-­‐Transporta5on-­‐Wai5ng-­‐
Inventory-­‐Mo5on-­‐Processing.	
  
	
  
Waste	
  can	
  take	
  many	
  forms;	
  	
  
Some	
  causes	
  of	
  the	
  most	
  common	
  forms	
  of	
  waste	
  
include:	
  
	
  
• lack	
  of	
  adherence	
  
• unnecessary	
  approvals	
  or	
  signatures	
  	
  
• reviews	
  of	
  reviews	
  
• mul5ple	
  hand-­‐offs	
  
• Transporta5on	
  
• long	
  setup	
  5me	
  
• correc5on,	
  and	
  
• over-­‐produc5on	
  
Other	
  causes	
  of	
  waste	
  may	
  include:	
  
	
  
• poor	
  maintenance	
  
• lack	
  of	
  training	
  
• poor	
  supervisory	
  skills	
  
• ineffec5ve	
  produc5on	
  planning/	
  scheduling	
  	
  
• lack	
  of	
  workplace	
  organiza5on	
  
• Supplier	
  quality/	
  reliability	
  
	
  
In	
  most	
  cases,	
  inventory	
  is	
  wasteful;	
  more	
  
importantly,	
  inventory	
  hides	
  all	
  sorts	
  of	
  problems	
  	
  
in	
  the	
  company	
  
Some	
  of	
  the	
  problems	
  that	
  conAnue	
  to	
  confound	
  
us	
  are	
  the	
  following:	
  
	
  
1. The	
  way	
  manufacturing	
  works	
  with	
  sales	
  makes	
  
scheduling	
  and	
  running	
  produc5on	
  difficult.	
  
2. We	
  compound	
  the	
  above	
  problem	
  by	
  the	
  way	
  
we	
  order	
  from	
  suppliers.	
  
3. Produc5on	
  and	
  management	
  don’t	
  trust	
  each	
  
other.	
  
4. The	
  way	
  we	
  measure	
  performance	
  doesn’t	
  
provide	
  informa5on	
  useful	
  to	
  running	
  a	
  plant	
  
and	
  o8en	
  encourages	
  wrong	
  decisions.	
  
How	
  to	
  Discover	
  Waste	
  
	
  
Look	
  at	
  the	
  “3	
  Real	
  Things”	
  in	
  every	
  operaAon	
  	
  
	
  
Material	
  Flow	
  or	
  Business	
  Steps	
  i.e.	
  transac5onal	
  
processes	
  
Informa5on	
  Flow	
  (data)	
  
Work-­‐in-­‐process	
  	
  
How	
  to	
  Discover	
  Waste	
  
	
  
Ask	
  what?	
  
What	
  is	
  the	
  opera5on	
  doing?	
  
	
  
Ask	
  why?	
  (at	
  least	
  5	
  Ames	
  to	
  lead	
  you	
  to	
  the	
  root	
  
cause)	
  
Why	
  is	
  the	
  opera5on	
  necessary?	
  
How	
  to	
  Discover	
  Waste	
  
	
  
Everything	
  that	
  is	
  not	
  work	
  is	
  waste	
  
	
  
Once	
  you	
  know	
  the	
  func5on,	
  you	
  can	
  iden5fy	
  as	
  
waste	
  anything	
  that	
  does	
  not	
  execute	
  that	
  func5on	
  
	
  
Dra8	
  an	
  improvement	
  plan...	
  Ask	
  how?	
  
How	
  to	
  Discover	
  Waste	
  
	
  
3	
  Major	
  contributors:	
  
	
  
Overburden/	
  Overdoing	
  
waste	
  caused	
  by	
  how	
  work	
  and	
  tasks	
  are	
  designed	
  
	
  
Unevenness	
  	
  
waste	
  caused	
  by	
  poor	
  quality	
  &	
  unpredictable	
  
process	
  	
  
	
  
Process	
  methods	
  	
  
waste	
  caused	
  by	
  “DOTWIMP”	
  
What	
  acAons	
  must	
  we	
  take?	
  
	
  
We	
  must	
  ...	
  
Decrease	
  cycle	
  5mes	
  
Reduce	
  travel	
  distances	
  
Standardize	
  our	
  processes	
  
Reduce	
  scrap,	
  rework	
  and	
  waste	
  
Improve	
  all	
  of	
  our	
  business	
  processes	
  
Reduce	
  the	
  varia5on	
  in	
  our	
  schedules	
  
Provide	
  a	
  constant,	
  steady	
  supply	
  of	
  
parts	
  to	
  produc5on,	
  assembly,	
  	
  
and	
  test	
  regularly	
  
	
  
What	
  acAons	
  must	
  we	
  take?	
  
	
  
We	
  must	
  ...	
  
Design	
  products	
  to	
  match	
  a	
  stable,	
  standard	
  
produc5on	
  process	
  ,	
  gain	
  Market	
  share	
  and	
  
increase	
  our	
  compe55veness	
  !	
  
	
  
	
  
	
  
How	
  do	
  we	
  get	
  there	
  ??	
  
	
  
How	
  do	
  we	
  get	
  there	
  ??	
  
	
  
	
  
	
  
“DMAIC”	
  
	
  
Define,	
  Measure,	
  Analyze,	
  Improve	
  and	
  Control	
  
DMAIC	
  
	
  
1. Understand	
  the	
  Problem	
  
2. Form	
  the	
  Team	
  
3. Understand	
  the	
  Process	
  
4. Gather	
  Process	
  Data	
  
5. Analyze	
  the	
  Process	
  
6. Iden5fy	
  possible	
  Correc5ve	
  Ac5ons	
  
7. Screen	
  /	
  Experiment	
  to	
  select	
  best	
  ac5on	
  
8. Implement	
  Ac5on	
  
9. Verify	
  Ac5on	
  
10.Sustain	
  Improvement	
  
Define	
  
Define,	
  Measure,	
  Analyze,	
  Improve	
  and	
  Control	
  
	
  
The	
  objec5ve	
  in	
  this	
  area	
  is	
  to	
  create	
  a	
  clear	
  
statement,	
  a	
  Team	
  Charter,	
  that	
  depicts	
  the	
  success	
  
story	
  to	
  be	
  created.	
  
	
  
Show	
  a	
  high	
  level	
  descrip5on	
  of	
  the	
  processes	
  
being	
  improved	
  and	
  the	
  expected	
  achievements.	
  
	
  
Show	
  how	
  your	
  customers	
  will	
  be	
  impacted	
  
The	
  most	
  cri5cal	
  stage	
  to	
  catch	
  the	
  support	
  from	
  
your	
  organiza5on.	
  
Measure	
  
Define,	
  Measure,	
  Analyze,	
  Improve	
  and	
  Control	
  
	
  
The	
  whole	
  objec5ve	
  here	
  is	
  to	
  gather	
  data	
  and	
  
informa5on	
  that	
  will	
  help	
  you	
  in	
  pin	
  poin5ng	
  the	
  
real	
  causes	
  of	
  the	
  problem	
  being	
  resolved.	
  
	
  
Here	
  you	
  will	
  know	
  your	
  current	
  situa5on	
  and	
  the	
  
expecta5on	
  on	
  how	
  much	
  can	
  be	
  improved.	
  
	
  
Informa5on	
  here,	
  helps	
  to	
  refine	
  your	
  ‘Define’	
  
stage	
  if	
  needed.	
  
Analyze	
  
Define,	
  Measure,	
  Analyze,	
  Improve	
  and	
  Control	
  
	
  
The	
  objec5ve	
  here	
  is	
  to	
  get	
  the	
  data	
  and	
  use	
  
sta5s5cal	
  tools	
  to	
  iden5fy	
  the	
  root	
  cause(s),	
  create	
  
a	
  hypothesis	
  (or	
  several	
  ones)	
  and	
  prove	
  them	
  out.	
  
	
  
The	
  ones	
  that	
  prove	
  to	
  be	
  the	
  real	
  causes,	
  are	
  the	
  
ones	
  needed	
  to	
  be	
  addressed	
  on	
  the	
  next	
  stage.	
  
Improve	
  
Define,	
  Measure,	
  Analyze,	
  Improve	
  and	
  Control	
  
	
  
The	
  target	
  is	
  to	
  implement	
  ac5ons	
  to	
  correct	
  the	
  
problems	
  iden5fied	
  on	
  the	
  previous	
  stage.	
  
	
  
These	
  ac5ons	
  need	
  to	
  be	
  tested	
  and	
  measured	
  to	
  
verify	
  that	
  are	
  effec5ve.	
  
	
  
The	
  effec5ve	
  methods	
  set	
  the	
  basis	
  for	
  the	
  next	
  
stage.	
  
Control	
  
Define,	
  Measure,	
  Analyze,	
  Improve	
  and	
  Control	
  
	
  
The	
  target	
  in	
  here	
  is	
  to	
  turn	
  the	
  solu5ons	
  found	
  
into	
  changes	
  that	
  fit	
  in	
  the	
  processes.	
  
	
  
These	
  changes	
  are	
  to	
  monitor	
  the	
  performance,	
  
maintain	
  the	
  benefits	
  from	
  the	
  solu5on	
  
implemented	
  and	
  set	
  the	
  ground	
  for	
  new	
  
improvement	
  opportuni5es	
  as	
  the	
  new	
  data	
  being	
  
collected	
  feeds	
  the	
  DMAIC	
  cycle	
  for	
  another	
  
project.	
  
	
  
Control	
  
Define,	
  Measure,	
  Analyze,	
  Improve	
  and	
  Control	
  
	
  
	
  
In	
  a	
  regulated	
  industry,	
  theses	
  changes	
  might	
  
require,	
  new	
  procedures	
  and	
  valida5ons	
  to	
  ensure	
  
compliance	
  to	
  ISO	
  and	
  SARS	
  regula5ons	
  as	
  
applicable.	
  
DMAIC	
  summary	
  
	
  
Each	
  single	
  stage	
  relies	
  on	
  the	
  previous	
  one	
  for	
  a	
  
comprehensive	
  effect.	
  
	
  
Cuyng	
  corners	
  is	
  prohibited	
  in	
  Six	
  Sigma.	
  
	
  
All	
  data	
  generated	
  and	
  used	
  must	
  be	
  kept	
  in	
  an	
  
organized	
  fashion	
  as	
  this	
  might	
  be	
  helpful	
  when	
  the	
  
DMAIC	
  cycle	
  gets	
  you	
  to	
  a	
  problem	
  where	
  that	
  
par5cular	
  informa5on	
  was	
  already	
  gathered.	
  
VALUE	
  STREAMING	
  
 
What	
  is	
  a	
  Value	
  Stream?	
  
	
  
All	
  the	
  ac5ons,	
  both	
  value	
  added	
  and	
  non-­‐value	
  
added,	
  currently	
  required	
  to	
  bring	
  a	
  product	
  from	
  
raw	
  materials	
  to	
  the	
  customer.	
  
	
  
Also	
  know	
  as	
  	
  
“Material	
  and	
  informa5on	
  flow	
  mapping”	
  
	
  
Taking	
  a	
  value	
  stream	
  perspec5ve	
  means	
  working	
  
on	
  the	
  BIG	
  picture	
  and	
  not	
  just	
  the	
  individual	
  
processes	
  and	
  improving	
  the	
  WHOLE	
  and	
  not	
  just	
  
op5mizing	
  the	
  parts	
  
	
  
This	
  starts	
  with	
  your	
  suppliers,	
  goes	
  through	
  your	
  
business	
  and	
  finishes	
  at	
  your	
  clients	
  ‘receiving’	
  
department.	
  
WHY	
  do	
  value	
  streaming?	
  
	
  
1. This	
  exposes	
  SOURCES	
  of	
  waste	
  and	
  not	
  just	
  
waste	
  
2. It	
  shows	
  the	
  linkage	
  between	
  informa5on	
  and	
  
product	
  flow	
  
3. Iden5fies	
  areas	
  of	
  improvement	
  
4. Helps	
  set	
  targets	
  for	
  5me	
  between	
  processes	
  
and	
  deliverables	
  
5. Allows	
  all	
  par5cipants	
  to	
  see	
  the	
  BIG	
  picture	
  in	
  a	
  
common	
  language.	
  
WHY	
  do	
  value	
  streaming?	
  
	
  
1. It	
  makes	
  decisions	
  about	
  the	
  flow	
  apparent	
  
2. It	
  stops	
  things	
  happening	
  by	
  ‘default’	
  
3. It	
  helps	
  iden5fy	
  and	
  avoid	
  ‘pet	
  projects’	
  
It	
  forms	
  the	
  basis	
  of	
  an	
  implementa5on	
  plan	
  
	
  
Value	
  streaming	
  is	
  a	
  qualita5ve	
  tool	
  by	
  which	
  you	
  
can	
  describe	
  how	
  your	
  facility	
  should	
  operate.	
  
	
  
Value	
  Streaming	
  will	
  also	
  outline	
  what	
  you	
  will	
  
actually	
  do	
  to	
  affect	
  the	
  numbers	
  
The	
  5	
  S’s	
  
The	
  5	
  S’s	
  
The	
  5	
  S’s	
  
The	
  5	
  S’s	
  
	
  
1. SEIRI	
   	
   	
   	
  separate	
  or	
  sort	
  
2. SEITON	
   	
   	
  straighten	
  or	
  put	
  in	
  place	
  
3. SEISO 	
   	
   	
  clean	
  or	
  shine	
  
4. SEIKETSU 	
   	
  standardize	
  
5. SHITSUKE 	
   	
  discipline	
  or	
  sustain	
  
	
  
	
  
1.	
  SEIRI	
  
	
   	
  	
  
	
  
• Remove	
  unnecessary	
  items	
  and	
  dispose	
  of	
  them	
  
properly	
  
• Make	
  work	
  easier	
  by	
  elimina5ng	
  obstacles	
  
• Reduce	
  chance	
  of	
  being	
  disturbed	
  with	
  
unnecessary	
  items	
  
• Prevent	
  accumula5on	
  of	
  unnecessary	
  items	
  
• Evaluate	
  necessary	
  items	
  with	
  regard	
  to	
  cost	
  or	
  
other	
  factors.	
  
• Remove	
  all	
  those	
  parts	
  that	
  not	
  in	
  use.	
  
	
  
	
  
1.	
  SORT	
  
	
   	
  	
  
	
  
Sort,	
  the	
  first	
  S,	
  focuses	
  on	
  elimina5ng	
  unnecessary	
  
items	
  from	
  the	
  workplace	
  that	
  are	
  not	
  needed	
  for	
  
current	
  produc5on	
  opera5ons.	
  An	
  effec5ve	
  visual	
  
method	
  to	
  iden5fy	
  these	
  unneeded	
  items	
  is	
  called	
  
"red	
  tagging",	
  which	
  involves	
  evalua5ng	
  the	
  
necessity	
  of	
  each	
  item	
  in	
  a	
  work	
  area	
  and	
  dealing	
  
with	
  it	
  appropriately.	
  A	
  red	
  tag	
  is	
  placed	
  on	
  all	
  
items	
  that	
  are	
  not	
  important	
  for	
  opera5ons	
  or	
  that	
  
are	
  not	
  in	
  the	
  proper	
  loca5on	
  or	
  quan5ty.	
  	
  
	
  
1.	
  SORT	
  
	
   	
  	
  
	
  
Once	
  the	
  red	
  tag	
  items	
  are	
  iden5fied,	
  these	
  items	
  
are	
  then	
  moved	
  to	
  a	
  central	
  holding	
  area	
  for	
  
subsequent	
  disposal,	
  recycling,	
  or	
  reassignment.	
  
Organiza5ons	
  o8en	
  find	
  that	
  sor5ng	
  enables	
  them	
  
to	
  reclaim	
  valuable	
  floor	
  space	
  and	
  eliminate	
  such	
  
things	
  as	
  broken	
  tools,	
  scrap,	
  and	
  excess	
  raw	
  
material.	
  
	
  
	
  
2.	
  SEITON	
  
	
   	
  	
  
	
  
• Arrange	
  all	
  necessary	
  items	
  in	
  order	
  so	
  they	
  can	
  
be	
  easily	
  picked	
  for	
  use	
  
• Prevent	
  loss	
  and	
  waste	
  of	
  5me	
  
• Make	
  it	
  easy	
  to	
  find	
  and	
  pick	
  up	
  necessary	
  items	
  
• Ensure	
  first-­‐come-­‐first-­‐served	
  basis	
  
• Make	
  workflow	
  smooth	
  and	
  easy	
  (Value	
  stream)	
  
• Can	
  also	
  be	
  translated	
  as	
  "set	
  in	
  order"	
  or	
  
"streamline".	
  
	
  
	
  
2.	
  STRAIGHTEN	
  
	
   	
  	
  
	
  
Straighten	
  focuses	
  on	
  crea5ng	
  efficient	
  and	
  effec5ve	
  
storage	
  methods	
  to	
  arrange	
  items	
  so	
  that	
  they	
  are	
  easy	
  to	
  
use	
  and	
  to	
  label	
  them	
  so	
  that	
  they	
  are	
  easy	
  to	
  find	
  and	
  put	
  
away.	
  Set	
  in	
  Order	
  can	
  only	
  be	
  implemented	
  once	
  the	
  first	
  
pillar,	
  Sort,	
  has	
  cleared	
  the	
  work	
  area	
  of	
  unneeded	
  items.	
  
Strategies	
  for	
  effec5ve	
  Set	
  In	
  Order	
  include	
  pain5ng	
  floors,	
  
affixing	
  labels	
  and	
  placards	
  to	
  designate	
  proper	
  storage	
  
loca5ons	
  and	
  methods,	
  outlining	
  work	
  areas	
  and	
  loca5ons,	
  
and	
  installing	
  modular	
  shelving	
  and	
  cabinets.	
  
	
  
3.	
  SEISO	
  
	
   	
  	
  
	
  
• Clean	
  your	
  workplace	
  completely	
  
• Use	
  cleaning	
  as	
  inspec5on	
  
• Prevent	
  machinery	
  and	
  equipment	
  deteriora5on	
  
• Keep	
  workplace	
  safe	
  and	
  easy	
  to	
  work	
  
• Can	
  also	
  be	
  translated	
  as	
  "sweep"	
  
	
  
3.	
  SHINE	
  
	
   	
  	
  
	
  
Once	
  the	
  clu{er	
  that	
  has	
  been	
  clogging	
  the	
  work	
  
areas	
  is	
  eliminated	
  and	
  remaining	
  items	
  are	
  
organized,	
  the	
  next	
  step	
  is	
  to	
  thoroughly	
  clean	
  the	
  
work	
  area.	
  Daily	
  follow-­‐up	
  cleaning	
  is	
  necessary	
  to	
  
sustain	
  this	
  improvement.	
  Working	
  in	
  a	
  clean	
  
environment	
  enables	
  workers	
  to	
  no5ce	
  
malfunc5ons	
  in	
  equipment	
  such	
  as	
  leaks,	
  
vibra5ons,	
  breakages,	
  and	
  misalignments.	
  	
  
3.	
  SHINE	
  
	
  
These	
  changes,	
  if	
  le8	
  una{ended,	
  could	
  lead	
  to	
  
equipment	
  failure	
  and	
  loss	
  of	
  produc5on.	
  
Organiza5ons	
  o8en	
  establish	
  Shine	
  targets,	
  
assignments,	
  methods,	
  and	
  tools	
  before	
  beginning	
  
the	
  shine	
  pillar.	
  
	
  
4.	
  SEIKETSU	
  
	
   	
  	
  
	
  
• Maintain	
  high	
  standards	
  of	
  housekeeping	
  and	
  
workplace	
  organiza5on	
  at	
  all	
  5mes	
  
• Maintain	
  cleanliness	
  and	
  orderliness	
  
• Maintain	
  everything	
  in	
  order	
  and	
  according	
  to	
  its	
  
standard.	
  
• Everything	
  in	
  its	
  right	
  place	
  
4.	
  STANDARDIZE	
  
	
   	
  	
  
	
  
Once	
  the	
  first	
  three	
  5S's	
  have	
  been	
  implemented,	
  
the	
  next	
  pillar	
  is	
  to	
  standardize	
  the	
  best	
  prac5ces	
  in	
  
the	
  work	
  area.	
  Standardize,	
  the	
  method	
  to	
  
maintain	
  the	
  first	
  three	
  pillars,	
  creates	
  a	
  consistent	
  
approach	
  with	
  which	
  tasks	
  and	
  procedures	
  are	
  
done.	
  The	
  three	
  steps	
  in	
  this	
  process	
  are	
  assigning	
  
5S	
  (Sort,	
  Set	
  in	
  Order,	
  Shine)	
  job	
  responsibili5es,	
  
integra5ng	
  5S	
  du5es	
  into	
  regular	
  work	
  du5es,	
  and	
  
checking	
  on	
  the	
  maintenance	
  of	
  5S.	
  	
  
4.	
  STANDARDIZE	
  
	
   	
  	
  
	
  
Some	
  of	
  the	
  tools	
  used	
  in	
  standardizing	
  the	
  5S	
  
procedures	
  are:	
  job	
  cycle	
  charts,	
  visual	
  cues	
  (e.g.,	
  
signs,	
  placards,	
  display	
  scoreboards),	
  scheduling	
  of	
  
"five-­‐minute"	
  5S	
  periods,	
  and	
  check	
  lists.	
  The	
  
second	
  part	
  of	
  Standardize	
  is	
  preven5on	
  -­‐	
  
preven5ng	
  accumula5on	
  of	
  unneeded	
  items,	
  
preven5ng	
  procedures	
  from	
  breaking	
  down,	
  and	
  
preven5ng	
  equipment	
  and	
  materials	
  from	
  geyng	
  
dirty	
  
5.	
  SHITSUKE	
  
	
   	
  	
  
	
  
• To	
  keep	
  in	
  working	
  order	
  
• Also	
  translates	
  as	
  "do	
  without	
  being	
  told"	
  
5.	
  SUSTAIN	
  
	
  
Sustain,	
  making	
  a	
  habit	
  of	
  properly	
  maintaining	
  
correct	
  procedures,	
  is	
  o8en	
  the	
  most	
  difficult	
  S	
  to	
  
implement	
  and	
  achieve.	
  Changing	
  entrenched	
  
behaviors	
  can	
  be	
  difficult,	
  and	
  the	
  tendency	
  is	
  o8en	
  
to	
  return	
  to	
  the	
  status	
  quo	
  and	
  the	
  comfort	
  zone	
  of	
  
the	
  "old	
  way"	
  of	
  doing	
  things.	
  Sustain	
  focuses	
  on	
  
defining	
  a	
  new	
  status	
  quo	
  and	
  standard	
  of	
  work	
  
place	
  organiza5on.	
  Without	
  the	
  Sustain	
  pillar	
  the	
  
achievements	
  of	
  the	
  other	
  pillars	
  will	
  not	
  last	
  long.	
  	
  
5.	
  SUSTAIN	
  
	
  
Tools	
  for	
  sustaining	
  5S	
  include	
  signs	
  and	
  posters,	
  
newsle{ers,	
  pocket	
  manuals,	
  team	
  and	
  
management	
  check-­‐ins,	
  performance	
  reviews,	
  and	
  
department	
  tours.	
  Organiza5ons	
  typically	
  seek	
  to	
  
reinforce	
  5S	
  messages	
  in	
  mul5ple	
  formats	
  un5l	
  it	
  
becomes	
  "the	
  way	
  things	
  are	
  done.”	
  
	
  
Proper	
  discipline	
  keeps	
  the	
  5S	
  circle	
  in	
  mo5on.	
  
At	
  the	
  project	
  level,	
  there	
  are	
  black	
  belts,	
  	
  
master	
  black	
  belts,	
  green	
  belts,	
  yellow	
  belts	
  and	
  	
  
white	
  belts.	
  	
  
These	
  people	
  conduct	
  projects	
  and	
  	
  
implement	
  improvements.	
  
	
  
KAIZEN	
  
	
  
By	
  improving	
  standardized	
  ac5vi5es	
  and	
  processes,	
  
kaizen	
  aims	
  to	
  eliminate	
  waste	
  
	
  
The	
  idea	
  is	
  to	
  nurture	
  the	
  company's	
  human	
  
resources	
  as	
  much	
  as	
  it	
  is	
  to	
  praise	
  and	
  encourage	
  
par5cipa5on	
  in	
  kaizen	
  ac5vi5es	
  
	
  
	
  
	
  
KAIZEN	
  
	
  
This	
  philosophy	
  differs	
  from	
  the	
  "command	
  and	
  
control"	
  improvement	
  programs	
  of	
  the	
  mid-­‐
twen5eth	
  century.	
  (Triangle	
  structure)	
  
	
  
Kaizen	
  methodology	
  includes	
  making	
  changes	
  and	
  
monitoring	
  results,	
  then	
  adjus5ng.	
  Large-­‐scale	
  pre-­‐
planning	
  and	
  extensive	
  project	
  scheduling	
  are	
  
replaced	
  by	
  smaller	
  experiments,	
  which	
  can	
  be	
  
rapidly	
  adapted	
  as	
  new	
  improvements	
  are	
  
suggested	
  
	
  
KAIZEN	
  
	
  
The	
  idea	
  is	
  to	
  nurture	
  the	
  company's	
  human	
  
resources	
  as	
  much	
  as	
  it	
  is	
  to	
  praise	
  and	
  encourage	
  
par5cipa5on	
  in	
  kaizen	
  ac5vi5es	
  
	
  
	
  
	
  
KAIZEN	
  
	
  
The	
  cycle	
  of	
  kaizen	
  ac5vity	
  can	
  be	
  defined	
  as:	
  
	
  
• Standardize	
  an	
  opera5on	
  and	
  ac5vi5es,	
  
• Measure	
  the	
  opera5on	
  (find	
  cycle	
  5me	
  and	
  
amount	
  of	
  in-­‐process	
  inventory).	
  
• Gauge	
  measurements	
  against	
  requirements.	
  
• Innovate	
  to	
  meet	
  requirements	
  and	
  increase	
  
produc5vity.	
  
• Standardize	
  the	
  new,	
  improved	
  opera5ons.	
  
• Con5nue	
  cycle	
  ad	
  infinitum.	
  
	
  
KAIZEN	
  
	
  
This	
  cycle	
  is	
  also	
  known	
  as	
  the	
  Shewhart	
  Cycle	
  or	
  
PDCA	
  (plan–do–check–act	
  or	
  plan–do–check–
adjust)	
  
	
  
	
  
	
  
	
  
KAIZEN	
  
	
  
	
  
	
  
	
  
	
  
PLAN	
  
	
  
Establish	
  the	
  objec5ves	
  and	
  processes	
  necessary	
  to	
  
deliver	
  results	
  in	
  accordance	
  with	
  the	
  expected	
  
output	
  (the	
  target	
  or	
  goals).	
  By	
  establishing	
  output	
  
expecta5ons,	
  the	
  completeness	
  and	
  accuracy	
  of	
  the	
  
spec	
  is	
  also	
  a	
  part	
  of	
  the	
  targeted	
  improvement.	
  
When	
  possible	
  start	
  on	
  a	
  small	
  scale	
  to	
  test	
  possible	
  
effects	
  
DO	
  
	
  
Implement	
  the	
  plan,	
  execute	
  the	
  
process,	
  make	
  the	
  product.	
  Collect	
  
data	
  for	
  char5ng	
  and	
  analysis	
  in	
  the	
  
following	
  "CHECK"	
  and	
  "ACT"	
  steps.	
  
CHECK	
  
	
  
Study	
  the	
  actual	
  results	
  (measured	
  and	
  
collected	
  in	
  "DO"	
  above)	
  and	
  compare	
  against	
  
the	
  expected	
  results	
  (targets	
  or	
  goals	
  from	
  
the	
  "PLAN")	
  to	
  ascertain	
  any	
  differences.	
  Look	
  
for	
  devia5on	
  in	
  implementa5on	
  from	
  the	
  plan	
  
and	
  also	
  look	
  for	
  the	
  appropriateness	
  and	
  
completeness	
  of	
  the	
  plan	
  to	
  enable	
  the	
  
execu5on,	
  i.e.,	
  "Do".	
  	
  
CHECK	
  
	
  
Char5ng	
  data	
  can	
  make	
  this	
  much	
  easier	
  to	
  
see	
  trends	
  over	
  several	
  PDCA	
  cycles	
  and	
  in	
  
order	
  to	
  convert	
  the	
  collected	
  data	
  into	
  
informa5on.	
  Informa5on	
  is	
  what	
  you	
  need	
  for	
  
the	
  next	
  step	
  "ACT”.	
  
ACT	
  
	
  
Request	
  correc5ve	
  ac5ons	
  on	
  significant	
  
differences	
  between	
  actual	
  and	
  planned	
  
results.	
  Analyze	
  the	
  differences	
  to	
  determine	
  
their	
  root	
  causes.	
  	
  
ACT	
  
Determine	
  where	
  to	
  apply	
  changes	
  that	
  will	
  
include	
  improvement	
  of	
  the	
  process	
  or	
  
product.	
  When	
  a	
  pass	
  through	
  these	
  four	
  
steps	
  does	
  not	
  result	
  in	
  the	
  need	
  to	
  improve,	
  
the	
  scope	
  to	
  which	
  PDCA	
  is	
  applied	
  may	
  be	
  
refined	
  to	
  plan	
  and	
  improve	
  with	
  more	
  detail	
  
in	
  the	
  next	
  itera5on	
  of	
  the	
  cycle,	
  or	
  a{en5on	
  
needs	
  to	
  be	
  placed	
  in	
  a	
  different	
  stage	
  of	
  the	
  
process.	
  
Lean	
  6	
  Sigma	
  
	
  
6	
  Sigma,	
  Kaizen,	
  Value	
  Streaming	
  and	
  the	
  5S’s	
  are	
  
just	
  some	
  of	
  the	
  tools	
  in	
  the	
  Lean	
  Business	
  tool	
  kit	
  
and	
  alone	
  do	
  not	
  cover	
  all	
  Lean	
  aspects.	
  
	
  
Combined	
  with	
  other	
  sta5s5cs	
  and	
  tools	
  6	
  Sigma	
  
will	
  provide	
  solu5ons	
  and	
  produce	
  results.	
  
	
  
	
  
	
  
W	
  T	
  F	
  ?	
  
	
  
@Spillly	
  
brent@spillly.com	
  
www.spillly.com	
  
	
  
	
  
	
  

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An integrated approach to u5lizing Capital, Materials

  • 1.
  • 2. LEAN  is  simply  a  method  of   streamlining  a  process,  resul5ng  in   increased  revenue,  reduced  costs  and   improved  customer  sa5sfac5on.  
  • 3. SIX  SIGMA  is  named  a8er  a  sta5s5cal   concept  where  a  process  only  produces   3.4  defects  per  million  opportuni5es.   Six  Sigma  can  therefore  be  also  thought   of  as  a  goal,  where  processes  not  only   encounter  less  defects,  but  do  so   consistently.  
  • 4. Basically,  Six  Sigma  reduces  varia5on,   so  products  or  services  can  be  delivered   as  expected  reliably.  
  • 5. One  defect  for  every  294,000  units  
  • 6. Today’s  manufacturing  and  business   environments  are  reaching  a  point  that   compe55on  for  survival  and  market   share  is  an  obliga5on.     Tracking  the  global  economy  will  show   that  being  good  is  not  enough,   therefore  each  organiza5on  really  strive   for  excellence  if  want  to  stay  in  the   market.  
  • 7. Every  single  organiza5on   is  looking  for  one  single   outcome...  
  • 8. PROFIT     (And  keep  your  customers   sa5sfied  and  profitable)  
  • 9. P  -­‐  Process  excellence   R  -­‐  Resources  Management   O  -­‐  Oriented  to  a  Goal   F  -­‐  Financially  Strong   I  -­‐  Innova5ve  –  to  stay  ahead  of  compe55on   T  -­‐  Timely  deployment  of  strategies  
  • 10. Tradi5onal  management,  manufacturing   processes,  and  other  historic  approaches,   are  no  longer  enough..  
  • 11. With  origins  in  Japan,  LEAN  SIX  SIGMA  is  a   more  effec5ve  way  of  living  in  the  business   environment.     Its  focused  on  keeping  your  customers   profitable  by  using  your  product  or  service.  
  • 12. Origins  in  Toyota,  circa  1955     Formalized  in  1986  by  Motorola  and     made  famous  by  Jack  Welch  in  GE  1995.     The  way  of  doing  business...     Its  also  called  “Material  and  Informa5on  Flow   Mapping”     Used  by  Toyota  Motors  to  show  both  current   and  ideal  states  as  part  of  the  lean   implementaAon  process  
  • 13. The  history  of  manufacturing  has  moved  from     CRAFT  industries     to   MASS  manufacturing     to   LEAN  business  prac5ces.    
  • 14. LEAN  business  prac5ce  dictates  a  need  to   change  and  be  profitable.     Process  Analysis  is  the  founda5on   toward  achieving  Process  Excellence.      
  • 15. A  need  for  change  is  usually  characterized  by:     • “Q.A.”  departments  dicta5ng  policy   • Large  produc5on  runs  with  wastage   • Large  centralized  stores  with  slow  turn  around   • Customer  dissa5sfac5on   • Enormous  part  and  process  varia5on   • Measured  in  hours  instead  of  minutes   • Order  entry  5mes  measured  other  than  in   minutes     • Product  margins  eroded  by  increasing  opera5ng   costs     • Ever-­‐increasing  compe55ve  pressures  
  • 16. What  must  change?     Quality  -­‐                                      How  to  improve  it?   Cost  -­‐                                                How  to  control  it?   On-­‐Ame  Delivery  -­‐  How  to  ensure  it?       Failure  to  improve  in  all  three  areas  means  a   loss  of  compe55veness  in  today’s  global   marketplace  
  • 17. DO  NOT  set  incremental  improvement  goals   over  previous  performance,  rather  –   Think  of  where  we  need  to  be:    
  • 18.   Con5nually  declining  costs     Zero  defects   Minimal  inventories   Fully  sa5sfied  customers  
  • 19. LEAN:  a  definiAon     An  integrated  approach  to  u5lizing  Capital,   Materials,  and  Human  resources  to  produce   just  what  is  needed,  when  it  is  needed.  In  the   amount  needed  with  minimum  Materials,   Equipment,  Labour  and  Space.     J  I  T  
  • 20. LEAN:  a  definiAon     An  integrated  approach  to  u5lizing  Capital,   Materials,  and  Human  resources  to  produce   just  what  is  needed,  when  it  is  needed.  In  the   amount  needed  with  minimum  Materials,   Equipment,  Labour  and  Space.     IdenAfy  and  eliminate  waste.  
  • 21. Develop  the  ability:     • To  recognize  and  iden5fy  waste     • To  have  to  courage  to  call  it  waste     • To  have  the  desire  to  eliminate  it     • Eliminate  the  waste   • Truly  understand  that  waste  Raises  costs   • Waste  produces  no  corresponding  benefit     • Waste  threatens  all  of  our  jobs  
  • 22. Examples  of  Lean  targets:     • Defects  reduced  by  20%  per  year   • Delivery  Lead  Times  reduced  by  more  than  75%     • On  Time  Delivery  improved  to  99+%   • Produc5vity  (sales  per  employee)  increases  of   15-­‐25%  per  year   • Inventory  (working  capital)  reduc5ons  of  more   than  75%   • Return  on  Assets  improvement  of  100%+  
  • 23. To  do  PROFIT       we  can  use  the  Lean  Six  Sigma  Strategy  ...     ...  for  turning  manufacturing  and  business   processes  into  compe55ve  weapons.  
  • 24. Lean  Six  Sigma  Benefits:     The  Benefits  Always  Include  Increased  Market   Share,  Lowered  Cost  Higher  Profits  And   Happier  Customers  (And  Shareholders)     Every  Successful  Business  That  Competes  In  An   Over-­‐capacity  Or  Price-­‐  sensi5ve  Market  Is   Doing  “Lean”  Whether  They  Know  It  Or  Not  
  • 25. The  Lean  Six  Sigma  Strategy  has  4  Main  Goals:       IMPROVE  QUALITY   ELIMINATE  WASTE   REDUCE  LEAD  TIME   REDUCE  TOTAL  COSTS  
  • 26. With  a  well-­‐planned  implementaAon,   overall  expected  RESULTS  may  include  a  ...       35%  to  50%  reduc5on  in  lost  5me   15%  to  30%  decrease  in  scrap  &  rework     25%  to  40%  reduc5on  in  total  cycle  5me     (within  12  months)    
  • 27. LEAN              +          SIX  SIGMA            =          LEAN  SIX  SIGMA   Lean  reduces   waste  by     streamlining   a  process   Six  Sigma  reduces   defects  by     effec5vely  solving   problems   LEAN  accelerates  SIX  SIGMA   Solving  problems  and   Improving  processes  is   Faster  and  more  efficient    
  • 28. LEAN  Philosophy  and  Key  Concepts     1. The  5  core  principles  of  Lean   2. Define  value-­‐added  and  non-­‐valued   added  ac5vity   3. Define  the  7  most  common  types  of   waste  and  their  causes.   4. Review  a  systema5c  approach  to  discover   waste  within  a  process.  
  • 29. The  5  Core  Principles  of  Lean       1. Specify  value  in  the  eyes  of  the  customer   2. Iden5fy  value  and  eliminate  waste   3. Make  value  flow  at  pull  of  the  customer   4. Involve  &  empower  employees   5. Con5nuously  improve  in  pursuit  of  perfec5on  
  • 30. Value  Added  AcAvity     An  ac5vity  that  changes  the  size,  shape,  fit,  form,   or  func5on  of  material  or  informa5on  (for  the   first  5me)  to  sa5sfy  the  customer.     Non-­‐Value  Added  AcAvity     Those  ac5vi5es  that  consume  5me  or  resources,   but  do  not  add  value  in  the  eyes  of  the  customer.  
  • 31. Value  Added  AcAvity     Any  ac5vity  or  opera5on  performed  that  helps   transform  a  product  or  service  from  its  raw  state   into  its  finished  form  that  is:     • Completed  right  the  first  5me.   • Any  ac5vity  customer  is  prepared  to  pay  for.     • Delivered  in  conformance  to  specifica5on.    
  • 32. Non-­‐Value  Added  AcAvity     Any  ac5vity  that  doesn’t  help  to  transform  a   product  or  service  into  its  final  form.  Ac5vity  not   performed  right.  Ac5vity  customer  not  willing  to   pay  for.  This  includes:   • Unnecessary  process  steps   • Movement  of  inventory,  paperwork,  etc.   • Re-­‐work,  correc5ons,  etc.   • Storage  between  opera5ons,  batching  inventory     • Wait  5mes,  delay  5mes,  idle  5mes  
  • 33. 7  most  common  wastes     Iden5fy  and  reduce:     • Defects  (repair,  rework,  scrap)   • Overproduc5on  (inventory)   • Transporta5on  (conveyance)   • Wai5ng  (queue  5me)   • Inspec5on  (reliance  on  mass  inspec5on/   verifica5on)   • Mo5on  (parts,  paper,  people)   • Process,  itself  (over-­‐processing,  long  cycles)  
  • 34. 7  most  common  wastes     3  MAIN  CATEGORIES:     PEOPLE       PROCESS     PRODUCT    
  • 35. 7  most  common  wastes     1.  MOTION     Caused  by  incorrect  office  and  space  layouts   Lack  of  proximity  of  machines     Off-­‐line  &  unavailable  resources     This  increases  produc5on  5me  
  • 36. 7  most  common  wastes     2.  WAITING  TIME     Caused  by  wai5ng  staff,  machines,  materials     Long  set-­‐ups  and  lead  5mes     Decreases  produc5vity  &  wastes  personnel   resources  
  • 37. 7  most  common  wastes     3.  OVER-­‐PRODUCTION     Caused  by  large  batches,  raw  material  stocks     High  WIP  (work  in  process)  ,finished  goods  &  stocks   Making  for  the  sake  of  it   Ignoring  customer  demands     Ties  up  capital,  diverts  produc5on  from  customer   requirements,  loss  of  inventories  
  • 38. 7  most  common  wastes     4.  PROCESSING  TIME     Caused  by  Long  cycle  5mes,     process,  itself     Reduced  efficiency  -­‐  over  processing     High  overall  lead  5mes  
  • 39. 7  most  common  wastes     5.  DEFECTS     Caused  by  Long  delays  for  rec5fica5on     Costly  rework   Dissa5sfied  customers     Leads  to  Scrap,  rework  and  returns  
  • 40. 7  most  common  wastes     6.  INSPECTION     Caused  by  approvals  of  approvals   High  number  of  verifica5on  steps     Reliance  on  mass  inspec5on  techniques  
  • 41. 7  most  common  wastes     7.  TRANSPORTATION     Caused  by  Unnecessary  movement     Extra  handling     Leads  to  unnecessarily  long  produc5on  5mes  &   extra  WIP  
  • 42. 7  most  common  wastes       DOTWIMP     Defects-­‐Overproduc5on-­‐Transporta5on-­‐Wai5ng-­‐ Inventory-­‐Mo5on-­‐Processing.    
  • 43. Waste  can  take  many  forms;     Some  causes  of  the  most  common  forms  of  waste   include:     • lack  of  adherence   • unnecessary  approvals  or  signatures     • reviews  of  reviews   • mul5ple  hand-­‐offs   • Transporta5on   • long  setup  5me   • correc5on,  and   • over-­‐produc5on  
  • 44. Other  causes  of  waste  may  include:     • poor  maintenance   • lack  of  training   • poor  supervisory  skills   • ineffec5ve  produc5on  planning/  scheduling     • lack  of  workplace  organiza5on   • Supplier  quality/  reliability     In  most  cases,  inventory  is  wasteful;  more   importantly,  inventory  hides  all  sorts  of  problems     in  the  company  
  • 45. Some  of  the  problems  that  conAnue  to  confound   us  are  the  following:     1. The  way  manufacturing  works  with  sales  makes   scheduling  and  running  produc5on  difficult.   2. We  compound  the  above  problem  by  the  way   we  order  from  suppliers.   3. Produc5on  and  management  don’t  trust  each   other.   4. The  way  we  measure  performance  doesn’t   provide  informa5on  useful  to  running  a  plant   and  o8en  encourages  wrong  decisions.  
  • 46. How  to  Discover  Waste     Look  at  the  “3  Real  Things”  in  every  operaAon       Material  Flow  or  Business  Steps  i.e.  transac5onal   processes   Informa5on  Flow  (data)   Work-­‐in-­‐process    
  • 47. How  to  Discover  Waste     Ask  what?   What  is  the  opera5on  doing?     Ask  why?  (at  least  5  Ames  to  lead  you  to  the  root   cause)   Why  is  the  opera5on  necessary?  
  • 48. How  to  Discover  Waste     Everything  that  is  not  work  is  waste     Once  you  know  the  func5on,  you  can  iden5fy  as   waste  anything  that  does  not  execute  that  func5on     Dra8  an  improvement  plan...  Ask  how?  
  • 49. How  to  Discover  Waste     3  Major  contributors:     Overburden/  Overdoing   waste  caused  by  how  work  and  tasks  are  designed     Unevenness     waste  caused  by  poor  quality  &  unpredictable   process       Process  methods     waste  caused  by  “DOTWIMP”  
  • 50. What  acAons  must  we  take?     We  must  ...   Decrease  cycle  5mes   Reduce  travel  distances   Standardize  our  processes   Reduce  scrap,  rework  and  waste   Improve  all  of  our  business  processes   Reduce  the  varia5on  in  our  schedules   Provide  a  constant,  steady  supply  of   parts  to  produc5on,  assembly,     and  test  regularly    
  • 51. What  acAons  must  we  take?     We  must  ...   Design  products  to  match  a  stable,  standard   produc5on  process  ,  gain  Market  share  and   increase  our  compe55veness  !         How  do  we  get  there  ??    
  • 52. How  do  we  get  there  ??         “DMAIC”     Define,  Measure,  Analyze,  Improve  and  Control  
  • 53. DMAIC     1. Understand  the  Problem   2. Form  the  Team   3. Understand  the  Process   4. Gather  Process  Data   5. Analyze  the  Process   6. Iden5fy  possible  Correc5ve  Ac5ons   7. Screen  /  Experiment  to  select  best  ac5on   8. Implement  Ac5on   9. Verify  Ac5on   10.Sustain  Improvement  
  • 54. Define   Define,  Measure,  Analyze,  Improve  and  Control     The  objec5ve  in  this  area  is  to  create  a  clear   statement,  a  Team  Charter,  that  depicts  the  success   story  to  be  created.     Show  a  high  level  descrip5on  of  the  processes   being  improved  and  the  expected  achievements.     Show  how  your  customers  will  be  impacted   The  most  cri5cal  stage  to  catch  the  support  from   your  organiza5on.  
  • 55. Measure   Define,  Measure,  Analyze,  Improve  and  Control     The  whole  objec5ve  here  is  to  gather  data  and   informa5on  that  will  help  you  in  pin  poin5ng  the   real  causes  of  the  problem  being  resolved.     Here  you  will  know  your  current  situa5on  and  the   expecta5on  on  how  much  can  be  improved.     Informa5on  here,  helps  to  refine  your  ‘Define’   stage  if  needed.  
  • 56. Analyze   Define,  Measure,  Analyze,  Improve  and  Control     The  objec5ve  here  is  to  get  the  data  and  use   sta5s5cal  tools  to  iden5fy  the  root  cause(s),  create   a  hypothesis  (or  several  ones)  and  prove  them  out.     The  ones  that  prove  to  be  the  real  causes,  are  the   ones  needed  to  be  addressed  on  the  next  stage.  
  • 57. Improve   Define,  Measure,  Analyze,  Improve  and  Control     The  target  is  to  implement  ac5ons  to  correct  the   problems  iden5fied  on  the  previous  stage.     These  ac5ons  need  to  be  tested  and  measured  to   verify  that  are  effec5ve.     The  effec5ve  methods  set  the  basis  for  the  next   stage.  
  • 58. Control   Define,  Measure,  Analyze,  Improve  and  Control     The  target  in  here  is  to  turn  the  solu5ons  found   into  changes  that  fit  in  the  processes.     These  changes  are  to  monitor  the  performance,   maintain  the  benefits  from  the  solu5on   implemented  and  set  the  ground  for  new   improvement  opportuni5es  as  the  new  data  being   collected  feeds  the  DMAIC  cycle  for  another   project.    
  • 59. Control   Define,  Measure,  Analyze,  Improve  and  Control       In  a  regulated  industry,  theses  changes  might   require,  new  procedures  and  valida5ons  to  ensure   compliance  to  ISO  and  SARS  regula5ons  as   applicable.  
  • 60.
  • 61. DMAIC  summary     Each  single  stage  relies  on  the  previous  one  for  a   comprehensive  effect.     Cuyng  corners  is  prohibited  in  Six  Sigma.     All  data  generated  and  used  must  be  kept  in  an   organized  fashion  as  this  might  be  helpful  when  the   DMAIC  cycle  gets  you  to  a  problem  where  that   par5cular  informa5on  was  already  gathered.  
  • 62.
  • 63.
  • 64.
  • 65.
  • 66.
  • 68.   What  is  a  Value  Stream?     All  the  ac5ons,  both  value  added  and  non-­‐value   added,  currently  required  to  bring  a  product  from   raw  materials  to  the  customer.     Also  know  as     “Material  and  informa5on  flow  mapping”    
  • 69. Taking  a  value  stream  perspec5ve  means  working   on  the  BIG  picture  and  not  just  the  individual   processes  and  improving  the  WHOLE  and  not  just   op5mizing  the  parts     This  starts  with  your  suppliers,  goes  through  your   business  and  finishes  at  your  clients  ‘receiving’   department.  
  • 70.
  • 71.
  • 72. WHY  do  value  streaming?     1. This  exposes  SOURCES  of  waste  and  not  just   waste   2. It  shows  the  linkage  between  informa5on  and   product  flow   3. Iden5fies  areas  of  improvement   4. Helps  set  targets  for  5me  between  processes   and  deliverables   5. Allows  all  par5cipants  to  see  the  BIG  picture  in  a   common  language.  
  • 73. WHY  do  value  streaming?     1. It  makes  decisions  about  the  flow  apparent   2. It  stops  things  happening  by  ‘default’   3. It  helps  iden5fy  and  avoid  ‘pet  projects’   It  forms  the  basis  of  an  implementa5on  plan    
  • 74. Value  streaming  is  a  qualita5ve  tool  by  which  you   can  describe  how  your  facility  should  operate.     Value  Streaming  will  also  outline  what  you  will   actually  do  to  affect  the  numbers  
  • 75.
  • 76.
  • 80. The  5  S’s     1. SEIRI        separate  or  sort   2. SEITON      straighten  or  put  in  place   3. SEISO      clean  or  shine   4. SEIKETSU    standardize   5. SHITSUKE    discipline  or  sustain      
  • 81. 1.  SEIRI           • Remove  unnecessary  items  and  dispose  of  them   properly   • Make  work  easier  by  elimina5ng  obstacles   • Reduce  chance  of  being  disturbed  with   unnecessary  items   • Prevent  accumula5on  of  unnecessary  items   • Evaluate  necessary  items  with  regard  to  cost  or   other  factors.   • Remove  all  those  parts  that  not  in  use.      
  • 82. 1.  SORT           Sort,  the  first  S,  focuses  on  elimina5ng  unnecessary   items  from  the  workplace  that  are  not  needed  for   current  produc5on  opera5ons.  An  effec5ve  visual   method  to  iden5fy  these  unneeded  items  is  called   "red  tagging",  which  involves  evalua5ng  the   necessity  of  each  item  in  a  work  area  and  dealing   with  it  appropriately.  A  red  tag  is  placed  on  all   items  that  are  not  important  for  opera5ons  or  that   are  not  in  the  proper  loca5on  or  quan5ty.      
  • 83. 1.  SORT           Once  the  red  tag  items  are  iden5fied,  these  items   are  then  moved  to  a  central  holding  area  for   subsequent  disposal,  recycling,  or  reassignment.   Organiza5ons  o8en  find  that  sor5ng  enables  them   to  reclaim  valuable  floor  space  and  eliminate  such   things  as  broken  tools,  scrap,  and  excess  raw   material.      
  • 84. 2.  SEITON           • Arrange  all  necessary  items  in  order  so  they  can   be  easily  picked  for  use   • Prevent  loss  and  waste  of  5me   • Make  it  easy  to  find  and  pick  up  necessary  items   • Ensure  first-­‐come-­‐first-­‐served  basis   • Make  workflow  smooth  and  easy  (Value  stream)   • Can  also  be  translated  as  "set  in  order"  or   "streamline".      
  • 85. 2.  STRAIGHTEN           Straighten  focuses  on  crea5ng  efficient  and  effec5ve   storage  methods  to  arrange  items  so  that  they  are  easy  to   use  and  to  label  them  so  that  they  are  easy  to  find  and  put   away.  Set  in  Order  can  only  be  implemented  once  the  first   pillar,  Sort,  has  cleared  the  work  area  of  unneeded  items.   Strategies  for  effec5ve  Set  In  Order  include  pain5ng  floors,   affixing  labels  and  placards  to  designate  proper  storage   loca5ons  and  methods,  outlining  work  areas  and  loca5ons,   and  installing  modular  shelving  and  cabinets.    
  • 86. 3.  SEISO           • Clean  your  workplace  completely   • Use  cleaning  as  inspec5on   • Prevent  machinery  and  equipment  deteriora5on   • Keep  workplace  safe  and  easy  to  work   • Can  also  be  translated  as  "sweep"    
  • 87. 3.  SHINE           Once  the  clu{er  that  has  been  clogging  the  work   areas  is  eliminated  and  remaining  items  are   organized,  the  next  step  is  to  thoroughly  clean  the   work  area.  Daily  follow-­‐up  cleaning  is  necessary  to   sustain  this  improvement.  Working  in  a  clean   environment  enables  workers  to  no5ce   malfunc5ons  in  equipment  such  as  leaks,   vibra5ons,  breakages,  and  misalignments.    
  • 88. 3.  SHINE     These  changes,  if  le8  una{ended,  could  lead  to   equipment  failure  and  loss  of  produc5on.   Organiza5ons  o8en  establish  Shine  targets,   assignments,  methods,  and  tools  before  beginning   the  shine  pillar.    
  • 89. 4.  SEIKETSU           • Maintain  high  standards  of  housekeeping  and   workplace  organiza5on  at  all  5mes   • Maintain  cleanliness  and  orderliness   • Maintain  everything  in  order  and  according  to  its   standard.   • Everything  in  its  right  place  
  • 90. 4.  STANDARDIZE           Once  the  first  three  5S's  have  been  implemented,   the  next  pillar  is  to  standardize  the  best  prac5ces  in   the  work  area.  Standardize,  the  method  to   maintain  the  first  three  pillars,  creates  a  consistent   approach  with  which  tasks  and  procedures  are   done.  The  three  steps  in  this  process  are  assigning   5S  (Sort,  Set  in  Order,  Shine)  job  responsibili5es,   integra5ng  5S  du5es  into  regular  work  du5es,  and   checking  on  the  maintenance  of  5S.    
  • 91. 4.  STANDARDIZE           Some  of  the  tools  used  in  standardizing  the  5S   procedures  are:  job  cycle  charts,  visual  cues  (e.g.,   signs,  placards,  display  scoreboards),  scheduling  of   "five-­‐minute"  5S  periods,  and  check  lists.  The   second  part  of  Standardize  is  preven5on  -­‐   preven5ng  accumula5on  of  unneeded  items,   preven5ng  procedures  from  breaking  down,  and   preven5ng  equipment  and  materials  from  geyng   dirty  
  • 92. 5.  SHITSUKE           • To  keep  in  working  order   • Also  translates  as  "do  without  being  told"  
  • 93. 5.  SUSTAIN     Sustain,  making  a  habit  of  properly  maintaining   correct  procedures,  is  o8en  the  most  difficult  S  to   implement  and  achieve.  Changing  entrenched   behaviors  can  be  difficult,  and  the  tendency  is  o8en   to  return  to  the  status  quo  and  the  comfort  zone  of   the  "old  way"  of  doing  things.  Sustain  focuses  on   defining  a  new  status  quo  and  standard  of  work   place  organiza5on.  Without  the  Sustain  pillar  the   achievements  of  the  other  pillars  will  not  last  long.    
  • 94. 5.  SUSTAIN     Tools  for  sustaining  5S  include  signs  and  posters,   newsle{ers,  pocket  manuals,  team  and   management  check-­‐ins,  performance  reviews,  and   department  tours.  Organiza5ons  typically  seek  to   reinforce  5S  messages  in  mul5ple  formats  un5l  it   becomes  "the  way  things  are  done.”    
  • 95. Proper  discipline  keeps  the  5S  circle  in  mo5on.  
  • 96. At  the  project  level,  there  are  black  belts,     master  black  belts,  green  belts,  yellow  belts  and     white  belts.     These  people  conduct  projects  and     implement  improvements.    
  • 97.
  • 98. KAIZEN     By  improving  standardized  ac5vi5es  and  processes,   kaizen  aims  to  eliminate  waste     The  idea  is  to  nurture  the  company's  human   resources  as  much  as  it  is  to  praise  and  encourage   par5cipa5on  in  kaizen  ac5vi5es        
  • 99. KAIZEN     This  philosophy  differs  from  the  "command  and   control"  improvement  programs  of  the  mid-­‐ twen5eth  century.  (Triangle  structure)     Kaizen  methodology  includes  making  changes  and   monitoring  results,  then  adjus5ng.  Large-­‐scale  pre-­‐ planning  and  extensive  project  scheduling  are   replaced  by  smaller  experiments,  which  can  be   rapidly  adapted  as  new  improvements  are   suggested    
  • 100. KAIZEN     The  idea  is  to  nurture  the  company's  human   resources  as  much  as  it  is  to  praise  and  encourage   par5cipa5on  in  kaizen  ac5vi5es        
  • 101. KAIZEN     The  cycle  of  kaizen  ac5vity  can  be  defined  as:     • Standardize  an  opera5on  and  ac5vi5es,   • Measure  the  opera5on  (find  cycle  5me  and   amount  of  in-­‐process  inventory).   • Gauge  measurements  against  requirements.   • Innovate  to  meet  requirements  and  increase   produc5vity.   • Standardize  the  new,  improved  opera5ons.   • Con5nue  cycle  ad  infinitum.    
  • 102. KAIZEN     This  cycle  is  also  known  as  the  Shewhart  Cycle  or   PDCA  (plan–do–check–act  or  plan–do–check– adjust)          
  • 103. KAIZEN            
  • 104. PLAN     Establish  the  objec5ves  and  processes  necessary  to   deliver  results  in  accordance  with  the  expected   output  (the  target  or  goals).  By  establishing  output   expecta5ons,  the  completeness  and  accuracy  of  the   spec  is  also  a  part  of  the  targeted  improvement.   When  possible  start  on  a  small  scale  to  test  possible   effects  
  • 105. DO     Implement  the  plan,  execute  the   process,  make  the  product.  Collect   data  for  char5ng  and  analysis  in  the   following  "CHECK"  and  "ACT"  steps.  
  • 106. CHECK     Study  the  actual  results  (measured  and   collected  in  "DO"  above)  and  compare  against   the  expected  results  (targets  or  goals  from   the  "PLAN")  to  ascertain  any  differences.  Look   for  devia5on  in  implementa5on  from  the  plan   and  also  look  for  the  appropriateness  and   completeness  of  the  plan  to  enable  the   execu5on,  i.e.,  "Do".    
  • 107. CHECK     Char5ng  data  can  make  this  much  easier  to   see  trends  over  several  PDCA  cycles  and  in   order  to  convert  the  collected  data  into   informa5on.  Informa5on  is  what  you  need  for   the  next  step  "ACT”.  
  • 108. ACT     Request  correc5ve  ac5ons  on  significant   differences  between  actual  and  planned   results.  Analyze  the  differences  to  determine   their  root  causes.    
  • 109. ACT   Determine  where  to  apply  changes  that  will   include  improvement  of  the  process  or   product.  When  a  pass  through  these  four   steps  does  not  result  in  the  need  to  improve,   the  scope  to  which  PDCA  is  applied  may  be   refined  to  plan  and  improve  with  more  detail   in  the  next  itera5on  of  the  cycle,  or  a{en5on   needs  to  be  placed  in  a  different  stage  of  the   process.  
  • 110.
  • 111.
  • 112.
  • 113.
  • 114.
  • 115. Lean  6  Sigma     6  Sigma,  Kaizen,  Value  Streaming  and  the  5S’s  are   just  some  of  the  tools  in  the  Lean  Business  tool  kit   and  alone  do  not  cover  all  Lean  aspects.     Combined  with  other  sta5s5cs  and  tools  6  Sigma   will  provide  solu5ons  and  produce  results.        
  • 116.
  • 117. W  T  F  ?     @Spillly   brent@spillly.com   www.spillly.com