Introduction to lean six sigma 2 day seminar

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Introduction to Lean Six Sigma
2 Day Seminar_ Day 1

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Day 1
Table of Contents
1. Brief on Six Sigma & Lean
2. What is Lean?
3. What is Six Sigma?
4. Combining Lean and Six Sigma
5. Lean - Eight Wastes & Lean
Thinking Principles
6. Six Sigma Methodology: Define,
Measure, Analyze, Improve,
Control (DMAIC)
Day 2
Table of Contents
1. Define Phase Concept and Tools
2. Measure Phase Concept and Tools
3. Analyze Phase Concept and Tools
4. Improve Phases Concept and Tools
5. Control Phases Concept and Tools

Jack Welch
Ex- Chairman & CEO of GE
History of Lean Six Sigma
1980s-2000s
What was today to become Lean Six Sigma can be traced to
Motorola in the United States in 1986 to compete with
the Kaizen business model in Japan. In the 1990s Motorola
introduced Six Sigma in heavy manufacturing. Jack
Welch consulted and began Six Sigma at General Electric.
During the 2000s Lean Six Sigma forked from Six Sigma.
2000s-2010s
The first concept of Lean Six Sigma was created in 2001 by a
book titled Leaning into Six Sigma: The Path to integration of
Lean Enterprise and Six Sigma by Barbara Wheat, Chuck
Mills, Mike Carnell.
In the early 2000s Six Sigma principles expanded into other
sectors of the economy, such as Healthcare, Finance, Supply
Chain, etc.

What is a Six Sigma?
Six Sigma (6σ) is a set of techniques and tools for process improvement in which 99.9999998027% of all
opportunities to produce some feature of a part are statistically expected to be free of defects.
Six Sigma strategies seek to improve the quality of the output of a process by identifying and removing the
causes of defects and minimizing variability in manufacturing and business processes. It uses a set of quality
management methods, mainly empirical, statistical methods, and creates a special infrastructure of people
within the organization who are experts in these methods. Each Six Sigma project carried out within an
organization follows a defined sequence of steps and has specific value targets, for example: reduce process
cycle time, reduce pollution, reduce costs, increase customer satisfaction, and increase profits.

What is a Lean?
Lean principles are derived from the Japanese manufacturing industry. It is the set of "tools" that assist in the
identification and steady elimination of waste. As waste is eliminated quality improves while time and cost are
reduced.
Lean implementation emphasizes the importance of optimizing work flow through strategic operational
procedures while minimizing waste and being adaptable. The cultural and managerial aspects of lean are
arguably more important than the actual tools or methodologies itself. It aims to enhance productivity by
simplifying the operational structure enough to understand, perform and manage the work environment.

Why Lean Six Sigma?
Lean Six Sigma is a methodology that relies on a collaborative team effort to improve
performance by systematically removing waste and reducing variation. It combines lean
manufacturing/lean enterprise and Six Sigma to eliminate the wastes.
It is a synergized managerial concept of Lean and Six Sigma. Lean traditionally focuses on the
elimination of the eight kinds of waste classified as defects, over-production, waiting, non-utilized
talent, transportation, inventory, motion and extra-processing. Six Sigma seeks to improve the
quality of process outputs by identifying and removing the causes of defects (errors) and
minimizing variability in (manufacturing and business) processes.
Lean six sigma not only reduces process defects and waste, but also
provides a framework for overall organizational culture change

Purpose of a Lean Six Sigma Project
Increase business-
related productivity
processes & Generate
new markets
Enhance customer
satisfaction & Achieve
significant cost savings
Generate better revenues
and margins
Manage and deliver
sustainable and
measurable
improvement in an
organization.

Isn’t Lean 6σ Just For Manufacturing?
No, Lean Six Sigma is good for ANY business.
 Has been successful in industries such as banking, retail, software, and medical
 Has been successful in improving processes throughout operations, sales, marketing,
information technology, finance, customer services, and human resources
Why?
 Because every business suffers from the two key problems that Six Sigma can solve: defects
and delay
 Lean helps in significantly reducing wastes

LEANHelp Your
Organization
Eliminate Errors
Improve Business
Processes &
Sustain Quality
Improvement
Applicability
Across Industries
Benefits of Lean Six Sigma Certification
Nurtures
Managerial &
Leadership Ability
Earning Excellent
Salary and Perks

8 Wastes in Lean
Lean thinking aims to remove wastes from work processes. Before diving into the
8 wastes, it is important to understand what waste is. Waste is any action or step
in a process that does not add value to the customer. In other words, waste is any
process that the customer does not want to pay for.
The original seven wastes (Muda) was developed by Taiichi Ohno, the Chief
Engineer at Toyota, as part of the Toyota Production System (TPS). The seven
wastes are Talent, Inventory, Motion, Waiting, Overproduction, Over processing
and Defects. They are often referred to by the acronym ‘TIMWOOD’.
The 8th waste of non-utilized talent or ‘Skills’ of workers was later introduced in
the 1990s when the Toyota Production System was adopted in the Western world.
As a result, the 8 wastes are commonly referred to as ‘TIMWOODS’.

8 Wastes of Lean Six Sigma

Lean Principles
The five-step thought process for guiding the implementation of lean
techniques is easy to remember, but not always easy to achieve:

Six Sigma Methodology
Six Sigma has two key methodologies −
•DMAIC − It refers to a data-driven quality
strategy for improving processes. This
methodology is used to improve an existing
business process.
•DMADV − It refers to a data-driven quality
strategy for designing products & processes. This
methodology is used to create new product
designs or process designs in such a way that it
results in a more predictable, mature and defect
free performance.
There is one more methodology called DFSS −
Design For Six Sigma. DFSS is a data-driven
quality strategy for designing or redesigning a
product or service from the ground up.

DMAIC Roadmap
Problem Solving in 30 steps

DMAIC Tools

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Six Sigma DMAIC - Define Phase
5 Key Deliverables
1. Process Map
2. Project Scope
3. Identify Stakeholders
4. Create Project Plans
5. Create Project Plans

Define Phase Outputs
The first output of Six Sigma Define phase is the Project Charter. By the end of the Six
Sigma Define phase, the project team will be ready with project charter or agreement;
that is duly approved or signed-off by the Six Sigma project champions or sponsors.
The team will also have a list of feasible customer requirements or expectations that
need to be fulfilled as a result of the implementation of the solutions by the Six Sigma
project. The documented flowchart or process map can also be published by the project
team at the end of the Six Sigma Define phase. The process map or flowchart would
belong to the process where the business problem occurs and recurs in due course.

Project Charter Sample

The measure phase engages more on collating data and making extensive analysis, numerical and statistical
studies. The focal point of this phase is to identify which metric gives the highest effect on the problem.
Those who give greatest impact are prioritized to create a list that will be studied in detail.
With a prioritized list of data in hand, the project owner will then determine the probable ways the procedure
could go wrong or how the data may perhaps go wrong. Legitimate and dependable metrics to observe the
progress of the assignment are established during this phase. Once the grounds for data failure are
identified, anticipatory action items will be created.
Six Sigma DMAIC - Measure Phase

Measure Phase Quantifiable Tools
• Process Mapping
• Data Collection Plan
• Leading and Lagging Metrics
• Descriptive Statistics, Histogram
• Capability Analysis
• Sample Size Collection.
Some project owner use more than one tool before drawing a conclusion.

Measure it the Six Sigma Way
A sample diagram below shows the start-to-finish call flow of a technical support
agent. Each stage is characterized with several activities that might lead to customer
dissatisfaction. The middle row boxes represent the first-to-last stage of the call. The
first row boxes represent the outputs and the last row of boxes represents the inputs.
Every stage in the process should be carefully evaluated based on the significance
it provides to the customer. There are three classifications which identifies value of a
certain process. These are Value Adding, Non-Value Adding or Non-Value Adding

Using the Metrics
Another tool used in measure phase is the Metrics. This is where leading and lagging
metrics are identified. This process uses metrics to guide course management and course
development activities. The advantage of using this tool is that this enables a wide-
ranging understanding of course performance. This tool provides the project owners to
effectively handle service delivery functions through better decision making. This tool
also allows detection and prioritization of course development opportunities:
To identify leading metrics, record all inputs from the high-level process map.
Determine the significant inputs using the Cause and Effect table. Record all significant
inputs on a transfer function template. The final list will be the leading metrics.

Measure Phase- Cause and Effect Tool
The Cause and Effect tool is used in determining the critical course inputs that have the
greatest impact or effect on the overall course performance. Since the table comes with
weights that help calculate the inputs, it is then easier to identify which amongst all
inputs gives greater impact on the course. All inputs indicated in the high level process
map should be included in the cause and effect table. In the same manner that all output
requirement in the SIPOC table should be included in the Cause and Effect table:

Six Sigma DMAIC – Analyze Phase
This is where the statistical study of a problem starts. In this phase
statistical reviews are done to the groups of deviation or variation in order
for project owners to identify which are the considerable contributors to the
output. The focal point of this phase is to identify and analyze the root
cause/s of imperfection.
This phase consists of several steps which also require several tools. The
phase usually starts by organizing the experimentation schedule to identify
which of the potential KPIV’s (key performance indicator variables) is the
real origin of defects. Sufficient amount of data is also required. This set of
data will be analyzed using an appropriate statistical procedure.

Analyze Phase - Ishikawa Graph.
The most common tool used in this phase
is the fishbone diagram also called
the Ishikawa graph. This is a graphical
demonstration of possible problem causes.
The chart will show the association of
cause and effect. The advantage of using
this tool is that it stimulates the reasoning
during brainstorming activity of possible
causes. It gives visual presentation of
possible causes. The possible causes are
grouped, therefore reducing the chances of
omitting some possible causes. And since
the causes are charted, project owners will
see and understand the relationship
between possible causes.
Constructing a fishbone diagram is not that easy. Since this is done during a brainstorming activity, conflict
of ideas and opinions are always expected. The good thing is that the outcome is always reliable and sound.

Box Plot or the whiskers plot
Another tool used in analyze phase is the box plot or the whiskers plot. This is fitting to use if the
data sets are as few as ten – twelve values. However, this is not suitable if sample size is less than
ten. This gives a graphical review of a data set showing the measure of middle location, two
measures of spreading, the skewness, and the outliers. Outliers are known as the values that don’t
seem to be part of the standard data. The box displays three values: the median (Q2), the lower
quartile (Q1), and the upper quartile (Q3). Extending from the box are lines also known as the
whiskers which lengthens to the maximum and minimum value.
To create a box plot, several values must be computed. These are:
• Quartile One (Q1) – is the average of the lowest twenty-five percent of the data set
• Quartile Three (Q3) – is the average of the highest twenty-five percent of the data set
• Maximum (Max) – is the biggest value amongst all data set
• Mean – is the standard value
• Median – is the center value of a data set
• Minimum (Min) – is the least value amongst all data set
• Inter Quartile Range (IQR) – using the formula Q3-Q1, this is the middle fifty or the mid spread
• Outlier Low – using the formula Quartile One – 1.5 * Inter Quartile Range or higher than
• Outlier High – using the formula Quartile Three + 1.5 * Inter Quartile Range

Creating a Box Plot
Six Sigma has two key methodologies −
•DMAIC − It refers to a data-driven quality
strategy for improving processes. This
methodology is used to improve an existing
business process.
•DMADV − It refers to a data-driven quality
strategy for designing products & processes. This
methodology is used to create new product
designs or process designs in such a way that it
results in a more predictable, mature and defect
free performance.
There is one more methodology called DFSS −
Design For Six Sigma. DFSS is a data-driven
quality strategy for designing or redesigning a
product or service from the ground up.
To create a box plot, several values must be computed.
These are:
• Quartile One (Q1) – is the average of the lowest twenty-
five percent of the data set
• Quartile Three (Q3) – is the average of the highest
twenty-five percent of the data set
• Maximum (Max) – is the biggest value amongst all data
set
• Mean – is the standard value
• Median – is the center value of a data set
• Minimum (Min) – is the least value amongst all data set
• Inter Quartile Range (IQR) – using the formula Q3-Q1,
this is the middle fifty or the mid spread
• Outlier Low – using the formula Quartile One – 1.5 *
Inter Quartile Range or higher than
• Outlier High – using the formula Quartile Three + 1.5 *
Inter Quartile Range
Common rule is that, the smaller the box and the shorter the
whiskers, the better. This means that values are close to each
other. Defect can easily be detected.

Scatter plot or scatter diagram
Scatter plot or scatter diagram is another tool
used to analyze a given set of data. This
evaluates the influence of one value to another.
This graph includes two different sets of
variables represented on two different axes, the
horizontal axis and the vertical axis. This
diagram gives two types of information. Visually,
we look for outlines that the two sets of data
related to each other.
If the two sets of data are related to each other,
we then identify in what way they are related.
The relationship amongst two variables is
known as the correlation.
Correlation is identified with the use of quadrants.

Six Sigma DMAIC – Improve Phase
The focus of this stage is to determine a solution which is based
on the uncovered problem in the first three phases. This phase
requires realization of the KPIV’s that are causing the outcome.
The activity requires three things:
(1) brainstorming by project owners and members whose goal is
to create a solution that will address the main problem,
(2) Testing the solutions, and
(3) Assessing the outcome of the executed solutions.
This stage will help conclude the amount and relationships of identified variables to the project Y.
Most of the time before rolling-out a full-scale implementation, project owners conduct test run
on a sample group. This is done to determine the finest settings. It is logical to choose the most
effective setting which is also factored on the company’s resources, procedures and policies.
Common tools used n this phase are the Seven Deadly Wastes, Five S, Benchmarking, and the
Solution Selection Matrix.

The Seven Deadly Wastes
The Seven Deadly Wastes corresponds to the areas that should be focused on
when making an improvement.
The areas considered in the Seven Deadly Wastes are:
Overproduction
Time/Waiting
Defects
Process Inefficiency
Transportation
Inventory
Motion

Improve Phase – Five S
Implementation is the focus of Improve phase. Some project owners use the concept of Five S to create
visual control on the work place. This methodology aims to improved safety, quality, and efficiency. The
effect therefore is reduced cost and waste, and improved management.
The approach is called the Five S because of a very plain idea.
All five actions start with a letter S.
Sort
Standar
dize
SustainShine
Set in
Order

Improve Phase – Benchmarking Tool
Benchmarking is another tool that can be used during the Improve phase. This is a procedure used to
calculate various characteristics of a certain process in relation to the most excellent practice. This permits
the group to develop strategies on how to implement such best practice, typically with the intention of
increasing some characteristics of performance.
Benchmarking vary on types:
•Process benchmarking
•Financial benchmarking
•Performance benchmarking
•Product benchmarking
•Strategic benchmarking
•Functional benchmarking

Improve Phase - Solution Selection Matrix
This tool allows project owners to review the knowledge regarding the process and its
cause verified. The activity includes brainstorming of possible solutions and combining
those solutions into one main process. In order to achieve better solutions, three simple
steps should be followed. Generate criteria, weight criteria, and evaluate criteria.
The table below will illustrate the use of the Solution Selection Matrix. Criteria and weights are plotted to
determine impact and value to the organization. Project members will vote and these votes will be multiplied to
the corresponding weights. The solution which earned the highest votes will most probably be implemented.

Six Sigma DMAIC – Control Phase
The focus of this stage is to make sure that the action item created in the Improve phase is well-
implemented and maintained. Several tools are used in this stage to make sure that variables are within
its limits. Activities such as checking the proper execution of initiative(s), control charts are being
employed, and effectiveness of the initiatives are also evaluated. To standardize the course of action and
documents, the guidelines and the responsibilities are also shared with the proper group or individual.

Control Phase- Control Chart
The most common tool is the Control Chart. Project owners watch the progress of
the process through the control chart. It is also a must that project owner can
interpret the control chart so that the project team can create a reference log
signifying what the project owner should look for. The charts are differentiated
through the control limits set of three sigma from the course mean.

Variable chart – Control Phase
Example of variable chart is the I-MR chart.
This is applied when only one capacity is
taken on each sampling period. It has two
charts: the Individual chart represented by I
or X. This shows the actual capacity against
sampling time. This is used to monitor the
variability between two samplings. The
Moving Range chart represented by MR
presents the range value between the
previous and the current sampling capacity
against the sampling time. This is used to
observe the unpredictability within the last
two samplings.

Control Phase - OCAP
If process control involves carrying out of identifying
and employing practical actions, Out of Control
Action Plan refers to setting the plans in order to
take action correctly to “out of control” signs. This
can anticipate the course performance. Course
changes are handled effectively and steadiness is
ensured in the event of new conditions. This also
allows early discovery of impending causes or
problems before it becomes a problem.

This tool is a set of structured, mutually dependent interactions that manages and shows
performance information to allow stakeholder set to effectively, consistently, and proactively
express control operations. It provides a shared and disciplined messaging method through which
stakeholders are defined with roles, agendas, and outcomes.
Control Phase - Operating Rhythm
Productive assembly do
not turn out by accident.
There should be
preparation, process,
content, and follow-up.
Operating Rhythm spans
the entire organization
thus it is imperative that
everything, all factors, all
aspects of the project is
discussed.

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