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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.
Will 
my 
mother 
understand 
this?
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? 
gFailure 
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: 
• gTo 
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: 
• gDefects 
reduced 
by 
20% 
per 
year 
• gDelivery 
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 
Six 
Sigma 
reduces 
waste 
by 
defects 
by 
streamlining 
effec5vely 
solving 
a 
process 
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
d 
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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Lean Six Sigma and the principles of Kaizen for your business

  • 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. Will my mother understand this?
  • 5. Basically, Six Sigma reduces varia5on, so products or services can be delivered as expected reliably.
  • 6. One defect for every 294,000 units
  • 7. 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.
  • 8. Every single organiza5on is looking for one single outcome...
  • 9. PROFIT (And keep your customers sa5sfied and profitable)
  • 10. 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
  • 11. Tradi5onal management, manufacturing processes, and other historic approaches, are no longer enough..
  • 12. 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.
  • 13. 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
  • 14. The history of manufacturing has moved from CRAFT industries to MASS manufacturing to LEAN business prac5ces.
  • 15. LEAN business prac5ce dictates a need to change and be profitable. Process Analysis is the founda5on toward achieving Process Excellence.
  • 16.
  • 17. 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
  • 18. What must change? Quality -­‐ How to improve it? Cost -­‐ How to control it? On-­‐Ame Delivery -­‐ How to ensure it? gFailure to improve in all three areas means a loss of compe55veness in today’s global marketplace
  • 19. DO NOT set incremental improvement goals over previous performance, rather – Think of where we need to be:
  • 20. Con5nually declining costs Zero defects Minimal inventories Fully sa5sfied customers
  • 21. 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
  • 22. 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.
  • 23.
  • 24. Develop the ability: • gTo 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
  • 25. Examples of Lean targets: • gDefects reduced by 20% per year • gDelivery 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%+
  • 26. To do PROFIT we can use the Lean Six Sigma Strategy ... ... for turning manufacturing and business processes into compe55ve weapons.
  • 27. 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
  • 28. The Lean Six Sigma Strategy has 4 Main Goals: IMPROVE QUALITY ELIMINATE WASTE REDUCE LEAD TIME REDUCE TOTAL COSTS
  • 29. 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)
  • 30. LEAN + SIX SIGMA = LEAN SIX SIGMA Lean reduces Six Sigma reduces waste by defects by streamlining effec5vely solving a process problems LEAN accelerates SIX SIGMA Solving problems and Improving processes is Faster and more efficient
  • 31. 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.
  • 32. 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
  • 33. 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.
  • 34. 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.
  • 35. 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
  • 36. 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)
  • 37. 7 most common wastes 3 MAIN CATEGORIES: PEOPLE PROCESS PRODUCT
  • 38. 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
  • 39. 7 most common wastes 2. WAITING TIME Caused by wai5ng staff, machines, materials Long set-­‐ups and lead 5mes Decreases produc5vity & wastes personnel resources
  • 40. 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
  • 41. 7 most common wastes 4. PROCESSING TIME Caused by Long cycle 5mes, process, itself Reduced efficiency -­‐ over processing High overall lead 5mes
  • 42. 7 most common wastes 5. DEFECTS Caused by Long delays for rec5fica5on Costly rework Dissa5sfied customers Leads to Scrap, rework and returns
  • 43. 7 most common wastes 6. INSPECTION Caused by approvals of approvals High number of verifica5on steps Reliance on mass inspec5on techniques
  • 44. 7 most common wastes 7. TRANSPORTATION Caused by Unnecessary movement Extra handling Leads to unnecessarily long produc5on 5mes & extra WIP
  • 45. 7 most common wastes DOTWIMP Defects-­‐Overproduc5on-­‐Transporta5on-­‐Wai5ng-­‐ Inventory-­‐Mo5on-­‐Processing.
  • 46. 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
  • 47. 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
  • 48. 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.
  • 49. 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
  • 50. 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?
  • 51. 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?
  • 52. 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”
  • 53. 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
  • 54. 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 ??
  • 55. How do we get there ?? “DMAIC” Define, Measure, Analyze, Improve and Control
  • 56. 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
  • 57. 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.
  • 58. 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.
  • 59. 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.
  • 60. 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.
  • 61. 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.
  • 62. 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.
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  • 64. 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.
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  • 71. d 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”
  • 72. 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.
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  • 75. 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.
  • 76. 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
  • 77. 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
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  • 83. 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
  • 84. 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.
  • 85. 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.
  • 86. 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.
  • 87. 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".
  • 88. 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.
  • 89. 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"
  • 90. 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.
  • 91. 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.
  • 92. 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
  • 93. 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.
  • 94. 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
  • 95. 5. SHITSUKE • To keep in working order • Also translates as "do without being told"
  • 96. 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.
  • 97. 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.”
  • 98. Proper discipline keeps the 5S circle in mo5on.
  • 99. 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.
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  • 101. 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
  • 102. 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
  • 103. KAIZEN The idea is to nurture the company's human resources as much as it is to praise and encourage par5cipa5on in kaizen ac5vi5es
  • 104. 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.
  • 105. KAIZEN This cycle is also known as the Shewhart Cycle or PDCA (plan–do–check–act or plan–do–check– adjust)
  • 106. KAIZEN
  • 107. 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
  • 108. DO Implement the plan, execute the process, make the product. Collect data for char5ng and analysis in the following "CHECK" and "ACT" steps.
  • 109. 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".
  • 110. 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”.
  • 111. ACT Request correc5ve ac5ons on significant differences between actual and planned results. Analyze the differences to determine their root causes.
  • 112. 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.
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  • 118. 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.
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  • 120. W T F ? @Spillly brent@spillly.com www.spillly.com