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Lean Six Sigma
Internal Training Course
Epyllion Limited
Scope : Green Belt
Trainer – Debasish Dey
DM- QAD, CLSSGB
Day: 2
Module : Introduction-2
Duration : 2 Hours
Quality Approaches Over the Years
What is Six Sigma-Definitions, Interpretation, Symbols
VOC, Way of collecting VOC
Project Selection
Introduction -2
Serial Quality Approach Time Frame Short Description
1 Quality Circles 1979-1981
Quality improvement or self-improvement study groups composed of a small number of
employees (10 or fewer) and their supervisor. Quality circle originated in Japan. Where they
are called "Quality Control Circles"
2 Statistical Process control Mid-1980s
The application of statistical techniques to control a process. Also called "Statistical quality
control"
3 ISO 9000 1987- Present
A set of international standards on quality management and quality assurance developed to
help companies effectively document the quality elements to be implemented to maintain an
efficient quality system. The standards underwent revisions in 2000, 2008 and 2015 and now
comprise ISO 9000 (Definition) 9001 (Requirements) 9004 (Continuous Improvement)
4 Reengineering 1996-1997
A breakthrough approach involving the restructuring of an entire organization and its
processes
5 Benchmarking 1988-1996
An improvement process in which a company measures its performance against that of best-
in-class companies, determines how those companies achieved their performance levels, and
uses the information to improve their performance .The subjects that can be benchmarked
include strategies, operations, processes and procedure.
6 Balanced Score Card 1990- Present
A management concept that helps managers at all levels monitor their results in their key
areas.
7 Six-Sigma 1995- Present
A methodology to reduce process/defect variation and increase financial benefit of the
organization.
8 Lean Manufacturing 2000-Present A methodology to reduce waste and increase efficiency.
Quality Approaches Over the Years
What is Six Sigma
Sigma is a statistical term that refers to the
standard deviation of a process around it’s
mean versus the methodology of problem
solving that has been labeled “Six Sigma”.
Common
Threads
those
defines
“Six Sigma”
Use of teams that are assigned well-defined projects that have direct impact on the
organization’s bottom line.
Training in “Statistical thinking” at all levels and providing key people with extensive
training in advanced statics and project management called as Black belts.
Emphasis on the DMAIC approach to problem solving ;Define, Measure, Analyze,
Improve, and control.
Continual effort to reduce variation in all processes within organization.
Six Sigma a Philosophy: The philosophical perspective views all work as
processes that can be defined ,measured, analyzed, improved and controlled
(DMAIC).Processes require inputs and produce outputs. If we can control inputs
then output also can be controlled. This is expressed as Y=f(X).
Six Sigma a set of tool: Six sigma as a set of tool includes all the
qualitative and quantitative techniques used by Six sigma expert to drive
process improvement. Tools include- SPC, Control charts, FMEA, Process
mapping ..etc
Six Sigma a Methodology: This view of Six sigma recognizes the
underlying and rigorous approach known as DMAIC. Starting with
identifying the problem and ending with the implementation of long
lasting solutions.
Six Sigma a Metrics: In simple terms, six sigma quality performance
means 3.4 defects per million opportunities.
( Account for 1.5 sigma shift in the mean)
What is Six Sigma.. Continues ….
What is Six Sigma.. Continues ….
What is Six Sigma.. Continues ….
The Target of Six Sigma is to achieve “Bottom Line Result”
Why Six Sigma
Customer Satisfaction
at Lowest Cost
Defeat competition by
understanding and then
exceeding customer
expectation.
To achieve ambitious
process excellence
To Improve Internal and
external metrics
CTQs
• Delivery
• Price
• Quality
External Metrics
Internal Metrics
• Cycle Time
• Cost
• Defects
CTPs
Simplify processes to reduce cycle time
Reduce cost by increasing efficiency and
eliminating non value added steps
Eliminate Variation
Target/AIM
Introduction to “Sigma” Symbols
The Sigma Scale
Example of Sigma Scale
Define Phase
a) Problem Definition
Tree
b) SIPOC Analysis
c) financial benefit
assessment
d) Project Charter
Measure Phase
a) Process Mapping
b) Operational
definition
c)Basic statistics &
Graphical data analysis
d)Measurement
system analysis
e) Process Stability
f) Process baseline
Analyze Phase
a) Cause & effect
diagram
b) 5 why analysis
c)Failure modes and
effects analysis
d) Pareto chart
e) Hypothesis Testing
f) Gap Analysis
Improve Phase
a) Generate Solution
ideas
b) Select best solution
c) Implementation plan
d) Pilot Results
e) Lean tools for
improvement
Control Phase
a) Control method
b) Statistical process
control
c) Other lean tools for
control
d) Control plan
e) Project Closure
Understanding-DMAIC
Why Listen to Customers?
Relationship - Customer Satisfaction And Loyalty In Highly Competitive Industries
As satisfaction goes up, so does loyalty – but the relation is not simple.
• Any drop from total satisfaction results in major drop in loyalty.
• In competitive markets, there is a tremendous difference between the loyalty of satisfied and completely satisfied
customers. This difference is hard to achieve and is a moving target.
• It is more effective to move customers from Satisfied to Completely Satisfied than to focus on customers who are
below Dissatisfied.
Most Defecting Customers Were “Satisfied“
• Customers Want To Be Completely Satisfied. When They Aren’t Completely Satisfied, They Have Reasons…
• Most Managers Should Be Concerned If The Majority Of Their Customers Fall Into The Satisfied Category
• The Key To Keeping, Finding, And Winning Customers Is To Understand What Customers Are Saying. . .
Why Listen to Customers?
Core Customer Research Methods
• A Voice of the
Customer
Listening Process
• Developing a
Listening
Strategy
• Listening to
Customers
• Organize and
Analyze Data
• Communicate
the Learning
• Drive Business
Activities
Methods of Listening to Customers
A Voice-Of-The-Customer Listening Process
The VOC Process Is A Continuous, Strategy-Driven Set Of Activities Focused On Establishing A Learning
Relationship Between Providers And Customers That Drives Business Results
What to do to set up a Successful VOC Process:
By Knowing
key
Customers.
We Know
How Satisfied
Current
Customers
are with
business
products and
Services.
Listening
Process
Provides The
Data To
Support Our
Business
Strategy.
By Knowing
Why
Customers
Like Products
And Services
From Our
Competitors.
By Knowing
What
Information
We Already
Have About
Customers.
By Knowing
How To
Gather And
Translate
Customer
“Noise” Into
Meaningful
Data.
By Having A
Strategy For
Sharing
Learning
About
Customers
With
Customer –
Both External
And Internal.
By
Establishing
A VOC
Listening
Process In
Place That
Links
Listening To
Business
Improvement
And
Innovation.
Collecting Voice of Customer
Base Line
Research
Interviews
Focus Groups
Surveys
Understand Scope
Customer issues & needs
Customer issues & needs
Customer issues & needs
VOC Process At a Glance
Project Selection
VOC: Voice of Customer
VOP: Voice of Process
VOB: Voice of Business
VOE: Voice of Employees
Projects
Examples of Projects
COPQ Reduction
Defect Reduction
Cycle Time Reduction
Productivity Improvement
Customer Retention
Project Selection
Process
Make a list of “Pain
Areas”/KPI derived from Data
Use appropriate selection
criteria for the final choices
Apply the criteria and select
the project
Evaluate the set of projects
against pressing business
needs
Draft Charter for each
selected Project
Phase Wise Deliverables & Tools
Serial Phase Deliverables Tools
1 Define
1.Voice of the customer
2. Project CTQ
3. Project Charter
4. Project Description
5. Financial Benefits
6.Team Kick off
7. Tollgate Reviews
1.Problem Definition tree
2.SIPOC Analysis
3.Affinity Diagram
4.Kano Analysis
2 Measure
1. Process Mapping
2. Operational Definition & Data Collection /Types of Data
3. Basic Stat & Graphical analysis
4. Measurement Analysis System
5. Process Stability
6. Process Baseline
7. Tollgate Review
1. Process Flow Chart
2. Value Stream Map
3. Graphical Analysis through Minitab- Histogram, Individual Value
plot, Box plot, Bar Chart, Pie Chart, Probability distribution plot
4. MSA through Minitab
3 Analyze
1. Cause & Effect Analysis
2. 5 Why Analysis
3. FMEA
4. Pareto Chart
5. Hypothesis Testing
6. Gap Analysis
7. Tollgate Review
1.Root Cause analysis tools
2. Minitab for hypothesis testing
A. 1 Sample t test
B. Normality Test
C. Two Sample vs each other
D. 2 Sample t test E. 2 Sample standard deviation F. Paired t Test. G
Anova test. H. 1/2 Sample % defective test. I. Chi square test. J.
Regression Test. K. Correlation Test
4 Improve
1. Generate Solution ideas
2. Select Best solution
3. Implementation plan
4.Pilot Results
5. Lean Tools for improvement
6. Toll gate review
1. Six thinking hat
2. Brainstorming
3. Multi Voting
4. Solution Selection Matrix
5. Lean ( Wastes minimization/ Kaizen)
5 Control
1. Control Methods
2. Statistical Process Control
3. Lean tool for control
4.Control plan
1. Poka-yoke
2. Control Charts ( I-MR Chart, X-Bar Chart, U control Chart, P Control
Chart )

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Lean Six Sigma- Internal Training Slides-2.pptx

  • 1. Lean Six Sigma Internal Training Course Epyllion Limited Scope : Green Belt Trainer – Debasish Dey DM- QAD, CLSSGB Day: 2 Module : Introduction-2 Duration : 2 Hours
  • 2. Quality Approaches Over the Years What is Six Sigma-Definitions, Interpretation, Symbols VOC, Way of collecting VOC Project Selection Introduction -2
  • 3. Serial Quality Approach Time Frame Short Description 1 Quality Circles 1979-1981 Quality improvement or self-improvement study groups composed of a small number of employees (10 or fewer) and their supervisor. Quality circle originated in Japan. Where they are called "Quality Control Circles" 2 Statistical Process control Mid-1980s The application of statistical techniques to control a process. Also called "Statistical quality control" 3 ISO 9000 1987- Present A set of international standards on quality management and quality assurance developed to help companies effectively document the quality elements to be implemented to maintain an efficient quality system. The standards underwent revisions in 2000, 2008 and 2015 and now comprise ISO 9000 (Definition) 9001 (Requirements) 9004 (Continuous Improvement) 4 Reengineering 1996-1997 A breakthrough approach involving the restructuring of an entire organization and its processes 5 Benchmarking 1988-1996 An improvement process in which a company measures its performance against that of best- in-class companies, determines how those companies achieved their performance levels, and uses the information to improve their performance .The subjects that can be benchmarked include strategies, operations, processes and procedure. 6 Balanced Score Card 1990- Present A management concept that helps managers at all levels monitor their results in their key areas. 7 Six-Sigma 1995- Present A methodology to reduce process/defect variation and increase financial benefit of the organization. 8 Lean Manufacturing 2000-Present A methodology to reduce waste and increase efficiency. Quality Approaches Over the Years
  • 4. What is Six Sigma Sigma is a statistical term that refers to the standard deviation of a process around it’s mean versus the methodology of problem solving that has been labeled “Six Sigma”. Common Threads those defines “Six Sigma” Use of teams that are assigned well-defined projects that have direct impact on the organization’s bottom line. Training in “Statistical thinking” at all levels and providing key people with extensive training in advanced statics and project management called as Black belts. Emphasis on the DMAIC approach to problem solving ;Define, Measure, Analyze, Improve, and control. Continual effort to reduce variation in all processes within organization.
  • 5. Six Sigma a Philosophy: The philosophical perspective views all work as processes that can be defined ,measured, analyzed, improved and controlled (DMAIC).Processes require inputs and produce outputs. If we can control inputs then output also can be controlled. This is expressed as Y=f(X). Six Sigma a set of tool: Six sigma as a set of tool includes all the qualitative and quantitative techniques used by Six sigma expert to drive process improvement. Tools include- SPC, Control charts, FMEA, Process mapping ..etc Six Sigma a Methodology: This view of Six sigma recognizes the underlying and rigorous approach known as DMAIC. Starting with identifying the problem and ending with the implementation of long lasting solutions. Six Sigma a Metrics: In simple terms, six sigma quality performance means 3.4 defects per million opportunities. ( Account for 1.5 sigma shift in the mean) What is Six Sigma.. Continues ….
  • 6. What is Six Sigma.. Continues ….
  • 7. What is Six Sigma.. Continues …. The Target of Six Sigma is to achieve “Bottom Line Result”
  • 8. Why Six Sigma Customer Satisfaction at Lowest Cost Defeat competition by understanding and then exceeding customer expectation. To achieve ambitious process excellence To Improve Internal and external metrics CTQs • Delivery • Price • Quality External Metrics Internal Metrics • Cycle Time • Cost • Defects CTPs Simplify processes to reduce cycle time Reduce cost by increasing efficiency and eliminating non value added steps Eliminate Variation Target/AIM
  • 12. Define Phase a) Problem Definition Tree b) SIPOC Analysis c) financial benefit assessment d) Project Charter Measure Phase a) Process Mapping b) Operational definition c)Basic statistics & Graphical data analysis d)Measurement system analysis e) Process Stability f) Process baseline Analyze Phase a) Cause & effect diagram b) 5 why analysis c)Failure modes and effects analysis d) Pareto chart e) Hypothesis Testing f) Gap Analysis Improve Phase a) Generate Solution ideas b) Select best solution c) Implementation plan d) Pilot Results e) Lean tools for improvement Control Phase a) Control method b) Statistical process control c) Other lean tools for control d) Control plan e) Project Closure Understanding-DMAIC
  • 13. Why Listen to Customers? Relationship - Customer Satisfaction And Loyalty In Highly Competitive Industries As satisfaction goes up, so does loyalty – but the relation is not simple. • Any drop from total satisfaction results in major drop in loyalty. • In competitive markets, there is a tremendous difference between the loyalty of satisfied and completely satisfied customers. This difference is hard to achieve and is a moving target. • It is more effective to move customers from Satisfied to Completely Satisfied than to focus on customers who are below Dissatisfied.
  • 14. Most Defecting Customers Were “Satisfied“ • Customers Want To Be Completely Satisfied. When They Aren’t Completely Satisfied, They Have Reasons… • Most Managers Should Be Concerned If The Majority Of Their Customers Fall Into The Satisfied Category • The Key To Keeping, Finding, And Winning Customers Is To Understand What Customers Are Saying. . . Why Listen to Customers?
  • 15. Core Customer Research Methods • A Voice of the Customer Listening Process • Developing a Listening Strategy • Listening to Customers • Organize and Analyze Data • Communicate the Learning • Drive Business Activities Methods of Listening to Customers
  • 16. A Voice-Of-The-Customer Listening Process The VOC Process Is A Continuous, Strategy-Driven Set Of Activities Focused On Establishing A Learning Relationship Between Providers And Customers That Drives Business Results What to do to set up a Successful VOC Process: By Knowing key Customers. We Know How Satisfied Current Customers are with business products and Services. Listening Process Provides The Data To Support Our Business Strategy. By Knowing Why Customers Like Products And Services From Our Competitors. By Knowing What Information We Already Have About Customers. By Knowing How To Gather And Translate Customer “Noise” Into Meaningful Data. By Having A Strategy For Sharing Learning About Customers With Customer – Both External And Internal. By Establishing A VOC Listening Process In Place That Links Listening To Business Improvement And Innovation.
  • 17. Collecting Voice of Customer Base Line Research Interviews Focus Groups Surveys Understand Scope Customer issues & needs Customer issues & needs Customer issues & needs
  • 18. VOC Process At a Glance
  • 19. Project Selection VOC: Voice of Customer VOP: Voice of Process VOB: Voice of Business VOE: Voice of Employees Projects
  • 20. Examples of Projects COPQ Reduction Defect Reduction Cycle Time Reduction Productivity Improvement Customer Retention Project Selection Process Make a list of “Pain Areas”/KPI derived from Data Use appropriate selection criteria for the final choices Apply the criteria and select the project Evaluate the set of projects against pressing business needs Draft Charter for each selected Project
  • 21. Phase Wise Deliverables & Tools Serial Phase Deliverables Tools 1 Define 1.Voice of the customer 2. Project CTQ 3. Project Charter 4. Project Description 5. Financial Benefits 6.Team Kick off 7. Tollgate Reviews 1.Problem Definition tree 2.SIPOC Analysis 3.Affinity Diagram 4.Kano Analysis 2 Measure 1. Process Mapping 2. Operational Definition & Data Collection /Types of Data 3. Basic Stat & Graphical analysis 4. Measurement Analysis System 5. Process Stability 6. Process Baseline 7. Tollgate Review 1. Process Flow Chart 2. Value Stream Map 3. Graphical Analysis through Minitab- Histogram, Individual Value plot, Box plot, Bar Chart, Pie Chart, Probability distribution plot 4. MSA through Minitab 3 Analyze 1. Cause & Effect Analysis 2. 5 Why Analysis 3. FMEA 4. Pareto Chart 5. Hypothesis Testing 6. Gap Analysis 7. Tollgate Review 1.Root Cause analysis tools 2. Minitab for hypothesis testing A. 1 Sample t test B. Normality Test C. Two Sample vs each other D. 2 Sample t test E. 2 Sample standard deviation F. Paired t Test. G Anova test. H. 1/2 Sample % defective test. I. Chi square test. J. Regression Test. K. Correlation Test 4 Improve 1. Generate Solution ideas 2. Select Best solution 3. Implementation plan 4.Pilot Results 5. Lean Tools for improvement 6. Toll gate review 1. Six thinking hat 2. Brainstorming 3. Multi Voting 4. Solution Selection Matrix 5. Lean ( Wastes minimization/ Kaizen) 5 Control 1. Control Methods 2. Statistical Process Control 3. Lean tool for control 4.Control plan 1. Poka-yoke 2. Control Charts ( I-MR Chart, X-Bar Chart, U control Chart, P Control Chart )