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Lean 6 sigma
- 1. An Introduction to Lean Six Sigma (6σ) Lean Six Sigma Control Define Measure Analyze Improve Submitted By Raju Malani Technical learning academy
- 2. 1. What is Six Sigma? 2. What is Lean? 3. What is Lean Six Sigma? 4. Adopted the seven speed bumps of lean 5. Benefits of Lean Six Sigma 6. Six Sigma toolbox 7. Methodology 8. Challenges during implementation of lean six sigma and S5 9. Case Study of Result 10. Conclusion of Case study and Future Improvement Plan Content
- 3. 1. What is Six Sigma? Sigma (σ) is a statistical concept that represents how much variation there is in a process relative to customer specifications. Sigma Value is based on “defects per million opportunities” (DPMO). Six Sigma (6σ) is equivalent to 3.4 DPMO. The variation in the process is so small that the resulting products and services are 99.99966% defect free. Target Customer Specification After 1s 3s 6s 6s ! By reducing the variability, we improve the process Target Customer Specification After 1s 1s 3s 3s 6s 6s 6s ! No Defects! By reducing the variability, Target defects defects Customer Specification Customer Specification
- 4. 2. What is Lean? The methodology of increasing the speed of production by eliminating process steps which do not add value • Those which delay the product or service • Those which deal with the waste and rework of defects along the way Core Ideas of Lean Determine and create value What does the customer want? Use “pull” instead of “push” systems to avoid overproduction Inventories hide problems and efficiencies. One piece flow Make the work “flow,” so that there are no interruptions and no wasted time or material Eliminate the seven speed bumps (non- value adds) caused by waste Use the “five whys?” and Six Sigma problem solving to eliminate defects Lean Principle 1. Define Value 2. MAP value Stream 3. Create flow 4. Establish Pull 5. Pursuit Perfection
- 5. 3. What is Lean Six Sigma? 6σ 6σ Lean Six Sigma Lean Six Sigma Use the PDCA Method and tools like 8 wastes and 5S to achieve to achieve continuous improvement Use the DMAIC and tools like control chart and FMEA to achieve continuous improvement Leverages the problem solving methods to help organization achieve their mission and customer satisfaction Lean Six Sigma is a systematic approach to reduce or eliminate activities that do not add value to the process. It highlights removing wasteful steps in a process and taking the only value added steps. The lean six sigma method ensures high quality and customer satisfaction in the manufacturing.
- 6. 4. Adopted the 7 (Seven) speed bumps of lean Non-value added waste – is any activity which absorbs money, time, and people but creates no value. 1. Over production which creates inventories that take up space and capital 2. Excess inventory caused by over production 3. Waiting for the next value-added process to start 4. Unnecessary movement of work products 5. Unnecessary movement of employees 6. Unnecessary or incorrect processing 7. Defects leading to repair, rework, or scrap.
- 7. 5. Benefits of Lean Six Sigma The general improvement in efficiency, though, is only one aspect of Lean Six Sigma. Other than improving the company bottom line, there are several other potential benefits Customer Satisfaction •Lean Six Sigma allows companies to improve their process and quality control. This, in turn, leads to a better product or service in terms of price, quality, lower defect rates, and so on. And as a given, the better the product or service, the happier the customer. Customer Loyalty •Consistency in quality is something your customers notice. You’re far more likely to get repeat business if your customers are always satisfied. Improved Employee Performance •Lean Six Sigma isn’t just something company management does. Rather, it’s evident in everyone’s day-to-day work. The employees learn how to perform better at their job, as well as how to set and surpass goals.
- 8. 6. Six Sigma toolbox Analysis of Variance (ANOVA) Box Plots Brainstorming Cause-effect Diagrams Correlation & Regression Design Of Experiments Graphs and Charts Histograms Hypothesis Testing Pareto Analysis Process Capability Studies Process Control Plans Process Flow Diagrams Quality Function Deployment Response Surface Methods Scatter Diagrams Standard Operating Procedures (SOPs) Statistical Process Control
- 9. 7. Methodology Some of the most popular ones are… 1. Kaizen 2. DMAIC 3. Value Stream Mapping 4. Kanban 5. Business Process Mapping (We will understand DMAIC)
- 10. 8. Challenges during implementation of lean six sigma Incorrect Scope Not using data driven approach Lack of resources Change is hard Low information
- 11. 5S 1. Sort 2. Straig hten 3. Shine 4. Stand ardize 5. Sustai n 8. Challenges during implementation of 5S Challenges External Challenges Environmental Pollution Safety issue Internal Challenges Low Productivity Low quality
- 12. 9. Result of case study Lean Six Sigma in the Energy Service Sector: A Case Study ( Call Center case study) Lean Six Sigma approach uses the problem-solving methodology DMAIC: 1. Define - in this step the team is formed, the Project Charter is developed, the Costumers’ voice is analyzed, a process map is created; 2. Measure - the actual performance is measured; 3. Analyze- the results of measurements, determining the causes of process imperfections and possible solutions for them . 4. Improve - the team generates and selects a set of solutions to improve sigma performance. 5. Control – ensuring that improvement sustains over time. As a result of the Lean Six Sigma implementation, the company significantly improved the actualization rate from 2.6% to 20%, outperforming the 10% target in just 3 months, updated the internal procedures, identified the main issue of the calls and improved the overall process.
- 13. 10. Conclusion and future implementation plan Conclusion • Catching mistakes and errors is important before they turn into defects. • Lean Six Sigma is often used in production as a method of improvement. Through this study we demonstrated its applicability in a service activity for the energy sector. Future Implementation plan • Now the company will work on optimizing the bill issue in order to decrease the dials in the call center. • Later on company will work on quantity and quality in every aspects of the call center.
Editor's Notes
- Problem Survey found that most residents in a female hall were unhappy with the bathrooms Subsequent focus groups found that residents were upset over the quantity and quality of hot water Define – Hot water variability in high-rise residence hall Measure – Record temp. of hot water on high, med., and low floors for two weeks, three times a day Analyze – Plot hot water on X-Bar/R Control Chart Improve – After understanding the process and the control chart, the team offered suggestions to control variability Control – A new control chart was run after changes to the system and the process was found to be in control Money – The changes decreased utility costs and increased student retention in the hall
- Challenges With Implementation These areas are results of the issues listed above. They involve errors in implementing Six Sigma process improvement methodologies. 1. Incorrect Scope The scope of a project is important as it defines the ultimate goal and sets parameters for what the project will encompass. However, once a project begins and issues are uncovered, scope creep can occur. This leads teams off onto tangents that don’t necessarily benefit the stated project goal. Office politics and a lack of unclouded vision from management can also constrain a project. 2. Not Using a Data-Driven Approach Knowing the correct data to collect on a project is difficult enough, as is analyzing it properly to reach conclusions that will benefit an organization. However, in many cases, managers and executives will still go with “gut instincts” no matter what the data shows. By ignoring the data, people ignore one of the basic principles of Six Sigma. 3. Lack of Resources This ties in particularly with management buy-in. Without providing the proper tools to accomplish a project, a team can soon flounder. 4. Change Is Hard Of everything listed above, fear of change is likely behind much of the issue.
- Challenges you can find: 1. Resistance of the areas to the program, due to the change of culture and creation of new routines; 2. Divergence of concepts between 5S auditors and lack of alignment of how to audit; 3. Lack of commitment of the 5S team with routines and duties for the Program to happen; 4. Inexistence or no follow-up to the action plan; 5. If improvement actions not implement, the program don't presents a good evolution and the improvement of the processes doesn't exist, the discredit of the people of the organization in relation to the program will appear strongly; and 6. Loss of program continuity due to changes in team structure due to lack of well-defined routines, processes and backups.