Introducing Lean Six Sigma 2014...

“We don’t know what we don’t know.
We can’t act on what we don’t know.
We won’t know until we search.
We won’t search for what we don’t question.
We don’t question what we don’t measure.
Hence, we just don’t know.”
- Dr. Mikel Harry (Six Sigma Co- Founder)
2

⁻ Every company must improve its operations in order to survive
and be profitable in the current economic and hypercompetitive
market.
⁻ This is critical to delivering a high quality product/service at the
lowest cost possible.
⁻ Today many companies looking at how they can deliver agile
operations needed to both improve their performance and also
support continuous improvement.
⁻ But, delivering this “change environment” has proven to be
difficult
The Challenge:
3

Product Cost, Pricing and Profitability
Pricing is largely determined by the Customer, so
to remain profitable, organizations NEED TO
REDUCE OR CONTROL COST
4

Are You Confident in Your Cost-
Cutting Scheme?
For many companies, the challenge is to
continually find ways to rebalance capacity to
match demand and eliminate unnecessary
operating cost in order to maintain or increase
profitability.
In trying to achieve this, some organizations have
undertaken severe
measures such as:
 Undercut services.
 Across-the-board layoffs/ Down-sizing/
Rationalization.
 Outsourcing.
 Eliminate some features in our
Products/Services
 Employ sharp practices/cut corners.
 Consolidation.
 Closing operations 5

Traditional cost-cutting has its challenges …
Much of the cost-cutting tactics have come in the form of
poorly planned, ad hoc measures.
Without careful analysis and understanding of the drivers of
cost, the outcomes can be hit and miss. Some may do more
harm than good by eroding customer loyalty, market share
and brand perception through lower service levels,
inattention to customer priorities and poor execution.
These mistakes might not show up as disasters, as some ad
hoc cost-cutting measures yield some small savings. Yet
organizations often miss 10 to 50 times the potential savings.
By succumbing to traditional cost-cutting tactics or copying
the latest improvement fad, these tactics typically fail to build
in flexibility and speed, which are critical capabilities in today’s
dynamic markets.
6

There is Need for Change
An objective review of our performance over the years will show us
there are things we would change given the chance(if we just knew
exactly how):
- Things that would make life better for our Customers and ourselves;
- Things that would make us easy to do business with (competitive
advantage)
High-performing companies excel in part because they execute day-to-
day business processes better than their competitors.
Creating and defending operational advantage is both more important
and more difficult to achieve than ever. It requires mastering repetitive
processes that deliver value to customers, the organization itself and
shareholders.
7

Lean Six Sigma:
A Viable
Strategy!
Lean Six Sigma: the most
effective methodology for
improving business and
organizational performance.
It gives you the balanced
approach to improve profitability
and service quality!
8

It Is A Robust Combination
- Lean is a way to do more with less while providing Customers
with exactly what they want without accumulating
unnecessary inventory
- Six Sigma is a disciplined, data-driven approach and
methodology for eliminating defects in any process. It
empowers us to have less than 4 defects in every 1,000,000
Opportunities!
With Lean Six Sigma, we are able to eliminate Waste (Cost of
Poor Quality) embedded in our processes which makes up
between 10% and 50% of our Operational costs.
9

With Simple and Compelling
Objectives
Benefits are:
1. High Quality Customer Focused
Products/ Services
2. Superior & Consistent Customer
Experience
3. Reduced Operating Costs
4. Increased Revenue and Market
Share
5. Empowered, Motivated & Highly
Proactive Staff
6. Improved Organization Goodwill
& Reputation
Lean Six Sigma will help satisfy the explicit and implicit customer needs
with the lowest consumption of resources by continuously eliminating:
Waste, Variability and Inflexibility!
10

What is Lean?
Lean is employing minimum resources to realize
maximum output and provide customers with exactly
what they want (Value) without accumulating
unnecessary inventory
It is simply doing More with Less
It is a systematic approach for identifying and
eliminating waste (Muda) in a system through
continuous improvement
11

Lean Philosophy
The objective of Lean is to incorporate less effort,
less inventory, less time to develop products, and
less space in order to become highly responsive to
actual customer demand and to produce high quality
product/ service in the most timely, efficient and
economical manner possible
Lean focusses on Value which is defined by the
ultimate customer (from Customer view).
It is more than just Cost!
12

SOME OF OUR ACTIVITIES ARE WASTE!
Waste
Value Enabling/
Incidental
Activity
Value
Added
Activity
Split of
our daily
work
Waste
Consume resources but creates
no value for the customer
Could be stopped and it would
be invisible to the customer
Value Added Activity
Transforms or shapes material or
information
Customer wants it
Done right the first time
Value Enabling Activity
No value created but required by current technology
No value created but required by current thinking
No value created but required by process limitations
No value created but required by current process
14

Lean and Wastes
Reducing Waste Drives Profits
Traditional Approach
Cost + Margin = Price
Oper.
Cost
Margin
Oper.
CostOper.
Cost
Margin
Margin
Lean Approach
Price - Cost = Margin
Oper.
Cost
Margin
Oper.
Cost
Margin
Oper.
Cost
Our Past
Our Future
CosttoCustomer
Margin
15

8 Classic Types of Waste • Defects
• Overproduction
• Waiting
• Non utilized talent
• Transportation
• Inventory
• Motion
• Excess processing
16

Defects
• All processing required in creating a defect and the additional
work required to correct a defect or error.
• Defective or scrap materials
• Cost of inspecting defects
• Responding to customer complaints
• Rework or re-inspection of questionable materials
17

Overproduction
• Supplying the process with more than is needed to meet
order requirements, sooner and faster than it is needed,
causes almost all other types of waste
• This is the worst waste of all, because it helps cause all
the others
18

Waiting
• The excess time waiting for anything (people, signatures,
information, etc.)
• Waiting for decisions, instructions, approval, information,
parts, maintenance, …
• Operator waiting for machines to run or cycle or
Machine waiting for operator
19

Non Utilized Skills/Talents
• PEOPLE’S SKILLS waste is a result of not placing people where they can
(and will) use their knowledge, skills, and abilities to their fullest in
providing value-added work and services.
• Employees are seen as a source of labor only, not seen as true process
experts
• People are told what to do, and asked not to think
• Employees are not involved in finding solutions, opportunities to
improve our process are missed
20

Transportation
• Excess movement of materials, documents, information, etc.
within an organization
• This movement adds no value to the customer/ end user and
is often used to get the extra inventory out of the way
• Double or triple handling, moving in and out of storage areas
and warehouses
21

Inventory
This is excess piles of materials, parts, paperwork, computer
files, supplies, etc.
• Requires people, equipment and space to count, transport,
store and maintain it
• If we do not get orders the material will become obsolete,
and be thrown away
• Inventory is often used to help hide other wastes
22

Motion
• Movement of people, material, products, and/or electronic
exchanges that does not add value
• Walking without working (away from workstation)
• Searching for Information, Materials or tools,
• Reaching, bending or unnecessary motion due to poor
housekeeping or workplace layout
• Company Process is not designed with employees in mind
23

Excess or Over Processing
• Putting more effort into the work than what is required
by internal or external customer.
• Doing more than is necessary to produce an effectively
functioning product
• Extra setup steps, over-specification of the process, extra
processing steps
24

Sources of Waste
 Work Area Layout
 Incapable/
Cumbersome
processes
 Poor maintenance
 Poor work methods
 Lack of training
 Lack of adherence
 Poor supervisory skills
 Inconsistent
performance measures
 Ineffective scheduling
 Excessive controls
 No back-up/cross-training
 Unbalanced workload
 No decision rules
 No visual control
 Lack of workplace
organization
 Supplier quality
All of the Lean tools are designed to Identify amd
Remove Waste! 25

Six Sigma Philosophy
Six Sigma is a disciplined, data-driven approach and
methodology for eliminating defects in any process.
It is the single most effective problem solving methodology
for improving business and organizational performance.
26

Let us Understand “X” in this journey to Improve on “Y”
 Y
 Dependent
 Output
 Effect
 Symptom
 Monitor
 X1 . . . XN
 Independent
 Input-Process
 Cause
 Problem
 Control
Six Sigma focusses on the X (causes) to improve or correct the behavior of the Y(
problem )
f (X)Y=
The focus of Six Sigma

Six Sigma Employs DMAIC METHODOLOGY
DEFINE – describe the problem
quantifiably and the underlying process to
determine how performance will be
measured
MEASURE – use measures or metrics to
understand performance and the
improvement opportunity
ANALYZE – identify the true root cause(s)
of the underlying problem
IMPROVE – identify and test the best
improvements that address the root
causes
CONTROL – identify sustainment
strategies that ensure process
performance maintains the improved
state 28

Problem Solving Steps: DMAIC METHODOLOGY
Let us draw an analogy of you reporting sick to the doctor and understand what
DMAIC is all about
•The doctor says what brings you here , understands “what is happening to you”
•Looks for symptoms and asks to produce last prescriptions if any
•The doctor might use instruments like Stethoscope, thermometer etc. to measure pulse
rate, temperature etc.
•Takes down notes
•May prescribe more tests like X-ray, Ultra Sound, Cat Scan to understand how various
processes inside the body are behaving…now he knows root cause..!!
•Prescribes medicines for betterment or improvement
•Asks the patient to maintain a chart of Body output measure…eg.
Temperature, to reflect variation over a period of time.
•Asks the patient to revisit after one week
•May provide long term medication during revisit.
Define
Measure
Analyze
Improve
Control
29

Is “Six Sigma” Overkill?
• 20,000 lost articles of mail
per hour
• 15 minutes of unsafe
drinking water each day
• 5,000 incorrect surgical
operations per week
• 2 short or long landings at
most major airports each
day
• 11 hours of no electricity
per month
• 7 lost articles of mail per
hour
• 1 minute of unsafe drinking
water per 7 months
• 1.7 incorrect surgical
operations per week
• 1 short or long landing every
5 years
• 1 hour of no electricity
every 34 years
99.99966% (6s)99% (≈3.8s)
30

Lean and Six Sigma
Differentiation Lean Six Sigma
Primary Interest Remove Waste Reduce Variation
The way they look
at the world
Flow/Waste Problem/Defect
Primary Effects Reduce waste and smooth flow Reduce variation to reduce
defects
Secondary Effects Less inventory, fast throughput,
better performance, more
uniform output, less variation,
improved quality
Improved quality, better
performance, reduced waste,
less inventory, faster
throughput, uniform process
output
Format Typically Kaizen event format.
Concentrated resources in
short timeframe
Project format. Resources
spread over months
Scope and Scale Quick and initial gains, ongoing
improvements. Suitable for
everyone and every part of the
business
Complex problems that require
in-depth analysis; Cross-
functional. Specialists
31

Lean Six Sigma Process
Improvement
identifying
and removing
the causes of
defects
(errors) and
variation
Identifying
and removing
sources of
waste within
the process
Focusing on
outputs that
are critical to
customers
acceltage consulting info@acceltage.com | 08022220341 , 08033204608

Lean and Six Sigma Tools for DMAIC METHODOLOGY
Phase
Define
SixSigma&leanTools
VOC , Kano ,
COPQ,
Problem
Statement,
Develop
Charter,
Process
Map,
Takt
Demand,
Production
Plan,
Output
Charter
SIPOC
Process
Map

Phase
Measure
SixSigma&leanTools
CTQ’s , Source
Data
Validation,
Segmentation
and
stratification
Data Collection
Basic Statistics
Cause and
Effect,
Value Stream,
Capability
analysis, Time
Study,
Output
Data Collection
on identified
factors
Process
Performance
identified
major problem
area

Phase
Analyze
SixSigma&leanTools
Pareto,
Fishbone,
Cause & Effect
Matrix, NGT,
5 why, Control
Impact Matrix,
Hypothesis
Testing,
ANOVA, FMEA,
Multivari
Analysis, DOE,
Process cycle,
Setup
Reduction, TOC
Problem Tree
Output
Identified
probable
causes ,
Root cause,
Vital and high
impacting
few causes

Phase
Improve
SixSigma&leanTools
Brainstorming,
Optimization,
Pilot,
Automation,
FMEA, ANOVA
DOE, 5S
Line Balancing
Kanban Pull,
Single Piece
Flow, SMED
Time & Motion
Study, Kaizen
Output
Best
Solution
Systemic
changes

Phase
Control
SixSigma&leanTools
Dashboard,
SPC
Process
Change/Work
Instructions/
Procedure
Change,
Control Plan
Process Audit,
Visual Control
Standard
Work, Poka
yoke, 5 S, TPM
Takt Board,
Kaizen Blitz
Output
Sustained
Results/
Improvement

Voice of the Customer
Voice of the Customer (VOC)
38
A term used in business process to describe the in-
depth process of capturing a customer’s expectations,
preferences, and aversions.
ORGANIZATIONAL BENEFITS:
 Develops specific and measurable needs of the customer
 Provides a common language for the improvement team
 Provides input for new and innovative products and/or
services

CustomerWhat does my
customer need
from our
process?
How is our process
performance from
the customer
perspective?
How does my
customer
measure my
process?
How would my
customer like for
our process to
perform?
What can we
do better?
How does my
customer view
my process?
Gather Customer Need: Voice of the Customer (VOC)
39

Insights into Customer Expectations
Solve my problem completely
Don’t waste my time
Provide exactly what I want
Deliver value where I want it
Supply value when I want it
Reduce the number of decisions I must to solve
my problems
40

Kano Model
There are 3 types of needs of a customer
• Basic Needs: Unspoken, taken For granted, Basic;
Spoken If Not Met
• Performance Needs : Measurable Range of
Fulfillment
• Excitement Needs : Unspoken Unexpected
Unknown
41

Basic
Requirements
Excitement
Requirements
Performance
Requirements
Reversal
Characteristics
Satisfaction
Dissatisfaction
SufficiencyInsufficiency
42

• There are tremendous improvement
and savings available to companies in
their operations if they will mobilize
their resources toward reduction of
waste and improvement of quality
• Six Sigma requires Leadership from
the Executive Staff
• The roadmap is clear and the
methods for improvement are well
defined
• Development of an implementation
and training plan is the next step
More on Lean Six Sigma …
43

Lean Six Sigma May Not Deliver
Expected Results If…
1. Results are not aggregated; teams work in silos
2. No Senior Management Commitment; efforts not tied to
corporate goals
3. We Focus on the knowledge and not the application in
the Right Way and Order
4. Lean Six Sigma efforts are applied on areas that will not
make a difference on the Organizational Bottom Line.
5. We do not deploy the right resources and create the
deliberately enabling environment for success
44

Six Sigma
Certifications
 Yellow Belt
 Green Belt
 Black Belt
 Master Black
Belt
Certification Bodies
 American
Society for
Quality (ASQ)
 International
Association for
Six Sigma
Certifications
(IASSC)
45

How May We Help You?
acceltage consulting
offers Customized Lean Six
Sigma Training and
Solutions for Organizations
and Their Business
Processes.
We can help your Business
Maximize Value, Minimize
Mistakes, Reduce Cost,
Eliminate Waste, Do More
With Less and Provide
Customers With Exactly
What They Want! 46

About Our Lean Six Sigma Training
COURSE AUDIENCE DESCRIPTION
Champions
Training
Senior Management/
Executives who will
support projects
2 Days (Lean Six Sigma
Appreciation and Projects
Identification/Selection)
White Belt
Training
All Staff
2 Days (Lean Six Sigma
Appreciation Class)
Yellow Belt
Training
Process Owners/
Officers
3 Days (Participants will carry out
Kaizen improvement projects on
their functions)
Green Belt
Training
Process Improvement
Team/ Change Agents
4 -5 Days (Participants will have a
Lean Six Sigma Project to work on
with identified Champion)
Black Belt
Training
Six Sigma Team Leads/
Change Managers
2 Weeks (Participants will have a
Lean Six Sigma Project to work on
with identified Champion)
All Courses are customized and facilitated in house at clients or acceltage facility
47

About Our Lean Six Sigma Solutions
To Deliver Sustainable Results, We will focus on three areas:
1. Operating System: This involves the Configuration and Optimization of
the Organization’s physical assets and resources to create value and
minimize losses
2. Employee Mind-set & Behaviours: We understand that your
employees are your greatest assets in the successful transformation of
the Organization. To ensure that staff are aligned to our collective
goals we will work on developing capabilities, fostering understanding
and commitment, ensuring role modelling and aligning systems &
structures.
3. Management Infrastructure: We will work on your structures,
processes and systems to manage and optimise human and
organisational resources in achieving our collective goals (Enhanced
Performance Management System, KRA, Dashboards, Quality Control
e.t.c.)
48

Company Wide Lean Six Sigma
Implementation; Our Approach:
The Process Improvement Team:
Critical to the success of the Lean Six
Sigma implementation in our organization
is involvement of process participants from
strategic units of the company to form the
Process Improvement Team. This has
proven to be the best practice in all
Successful Six Sigma Implementation.
These Employee will undergo the Lean Six
Sigma Green Belt Program
49

Our Approach (Contd.):
1. Diagnostic Phase
(Define/Measure/Analyze):
Identify and Determine Requirements and
Expectations from All Relevant Stakeholders
Perform Value Stream Mapping on the Strategic
Units of the Company
Identify Projects and Select the Ones with the
Highest Impacts
Conduct VOC, Determine CTQs/ COPQs, Sigma
Level/ Process Capability
Map Processes (MIFA), Determine VAs, VEs, NVAs,
SIPOC, Time & Motion
Collate , Validate and Segment Data
Analyze and Determine Root Causes
50

2. Design Phase (Improve):
Conduct Kaizen/ Brain Storm for all Possible Solutions
Apply the Lean Six Sigma Tools to Determine Ideal Solutions
Examine Workability of Solutions & Determine Alternatives
Envision The Ideal Process/ “Should Be”
Define Organizational Model That Would Align To proposed Improvement
Determine Technology Requirements/ Platforms
Assess Impact on the Business, Customers and Stakeholders
Prepare Justifications and Secure Management Approval
Establish Benchmarks and Define Success Metrics
51

3. Deployment Phase (Improve):
Complete Detailed Design of Process and
Organization
Communicate New Solutions to All Stakeholders
Develop and Implement Change Management
Plan
Develop a Phased Implementation(Pilots)
Implement Quick Wins
Adjust Process Changes and Apply Kaizen
Develop a Training Plan and Train All
Stakeholders on New Processes and Systems
Measure Progress and Communicate Results
52

4. Control Phase (Control):
Continued monitoring and assessment of
process changes
Apply Lean Six Sigma Tools for Control
(SPC, Kaizen, PDCA e.t.c)
Redeployment and other value securing
initiatives
Training and Capability building for all
staff
Measure Progress & Deliver Impressive
Results
Rollout Lean Six Sigma on All Identified
Areas of the Strategic pillars
Enhanced Performance Management
System
Reward System to Reinforce Process
Changes
53

Wouldn’t You Rather Talk to Us,
Before Your Competitors Do?
For detailed Lean Six Sigma training and Consulting
proposal please contact:
abiodun adetula CSSBB, PMP, CQPA
T: 08033204608, 08022220341
E: info@acceltage.com
Twitter: @acceltage
BB Pin: 25B3FBEA
55

Introducing Lean Six Sigma 2014...

More Related Content

What's hot

Similar to Introducing Lean Six Sigma 2014...

Recently uploaded

Introducing Lean Six Sigma 2014...