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Six Sigma Vs Lean
Presented by MN Kiranmai, BSc (RN),
MSc (Psychology)
QI Officer
Jazan
DEFINITION OF LEAN SIX SIGMA
• Lean Six Sigma is a methodology that relies on
a collaborative team effort to improve
performance by systematically removing
waste; combining lean manufacturing/lean
enterprise and Six Sigma to eliminate the eight
kinds of waste (muda): Time, Inventory,
Motion, Waiting, Over production, Over
processing, Defects, and Skills (abbreviated as
'TIMWOODS')
Learning Objectives
1. Understand DMAIC and Lean Methodologies.
4. Where are Six Sigma and Lean Methodologies used?
3. What are the tools used for Six Sigma and Lean?
2. What are the differences between Six Sigma and
Lean?
Y=F (X)
• Lean Six Sigma is about improving what is important or “critical to
the customer and quality (CTQ).” Y is the measurement of the CTQ
that needs to be improved to meet customer needs.
• Once you understand what the Ys are, (those things critical to
customers and quality), measure them and compare them to the
targets. Understand the process characteristics that may cause
variation and then reduce this variation by controlling the process
variables. These process variables are called the Xs.
• There may be many Xs that can affect the Y.
• This simple equation is used to help communicate what a project is
trying to accomplish. If Y is a function of X, then identify the Xs with
enough precision to first improve them and then control them.
Once Xs are maintained, the Y will be met.
DMAIC:
Six Sigma DMAIC Methodology
Control
Improve
Analyze
Measure
Define
Test Hypotheses
List Vital Few Xs
Identify Control Subjects
Develop Feedback Loops
Develop Process Control Plan to Hold the Gains
Implement, Replicate
Select the Solution
Design Solution, Controls, and Design for Culture
Prove Effectiveness
Develop Project Charter
Determine Customers & CTQs
Map High-Level Process
Establish and Measure Ys
Plan for Data Collection
Validate Measurement System
Measure Baseline Sigma
Identify Possible Xs
Six Sigma Methodology
Y
Xs
Measure
Analyze
Improve
Control
Process
Characterization
Process
Optimization
Goal: Y = f ( x )
Define
Practical Problem
Statistical Problem
Statistical Solution
Practical Solution
Six Sigma
Sources of Variation
y
x
Poor Design
Changing Needs
Measurement System
Insufficient Process Capability
Skills & Behaviours
Lean Methodology
Control
Process
Improve
Process - Pull
Analyze
Process - Flow
Measure
Value
Define
Value
Define Stakeholder Value and CTQs
Define Customer Demand
Map High-level Process
Assess for 6S Implementation
Measure Customer Demand
Plan for Data Collection
Validate Measurement System
Create a Value Stream Attribute Map
Determine Pace, Takt-time and Manpower
Identify Replenishment and Capacity Constraints
Implement S1-S3
Analyze the Value Stream Attribute Map
Analyze the Process Load and Capacity
Perform VA/NA Decomposition Analysis
Apply Lean Problem Solving to Solve for Special Causes
Conduct the Rapid Improvement Event
Design the Process Changes and Flow
Feed, Balance, Load the Process
Standardize Work Tasks
Implement New Processes
Stabilize and Refine Value Stream
Complete Process and Visual Controls
Identify Mistake-proofing Opportunities
Implement S4-S6
Control Plan, Monitor Results, and Closeout Project
LEAN
Why Define a Process as a Value
Stream?
–Focuses attention on what is important for the customer.
–Identifies all the necessary components to bring a product or
service from conception to commercialization.
–Identifies waste inherent in processes and works to remove
it.
–Reduces defects in products and deficiencies in processes.
–Focuses on improving specs and cost.
VALUE Vs WASTE
What Is Typically Found
Lean Value Stream Management starts with defining value
in terms of products and process capabilities to provide the
customer with what they need at the right time and at an
appropriate price.
Value
added
Non-value
added/waste
Adapted from Taiichi Ohno
The Eight Wastes
1. Overproduction—making or doing more than is required or
earlier than needed.
2. Waiting—for information, materials, people, maintenance, etc.
3. Transport—moving people or goods around or between sites.
4. Poor process design—too many/too few steps, non-
standardization, inspection rather than prevention, etc.
5. Inventory—raw materials, work-in-progress, finished goods,
papers, electronic files, etc.
6. Motion—inefficient layouts or poor ergonomics at work-stations or in offices.
7. Defects—errors, scrap, rework, non-conformance.
8. Underutilized personnel resources and creativity—ideas that are not listened to,
skills that are not utilized.
History of Lean
 Toyota
 Ohno and
Shingo
 Flow of work
 Small batch
sizes
 New philosophy
 Womack “Mach.
Changed World”
 Eliminate Waste
 Improve
performance
 Flexibility
1940 1952 1964 1980 1990 2000 2008
 Just-in-Time
 Schonberger
“Japanese
Mfg
Techniques”
 Takes TPS
and imports
to US
 Added to 6s tool
kit
 Large quantities
 Rapid pace
 High training
US war production
TPS
Lean
JIT
Lean 6s
• Methods Results
The Methods
Lean
&
Six
Sigma
Higher Quality
Lower Costs
Culture Change
Dashboard Results
Improve Speed
Sustain Performance
Achieve Breakthrough
Accelerated Change Management Support Pathway
How to Think About Improvement
The Juran Trilogy ®
Plan Control Improve
DFSS RCCA Lean Six Sigma
Sporadic Spike
Breakthrough
Six Sigma
& Beyond
Chronic Waste
COPQ
Matching Improvement Process to
Need
Change
Management
Plan, Do,
Study, Act
(PDSA)
Lean &
Six Sigma
DMAIC
Design for
Lean
Six Sigma
Small Gains or
Clear Solution
Launch New
Product, Service,
or Process
Large
Gains
Medium
Gains
Lean and Six Sigma
LEAN = Improvement principles focused on dramatically
improving process speed and eliminating the eight deadly
wastes.
Improve
Process-
Pull
Control
Process
Analyse
Process-Flow
Measure
Value
Define
Value
SIX SIGMA = Breakthrough Process, Design, or Improvement Teams
focused on eliminating chronic problems and reducing variation in
processes.
Improve ControlAnalyzeMeasureDefine
Lean Project Attributes
• Simply stated: “Lean is about moving the Mean.” It
focuses on efficiency.
– Lean reduces average cycle time.
– Lean reduces excess inventory.
– Lean improves average response time.
Improvement
Six Sigma Attributes
• Simply stated: “Six Sigma is about Reducing
Variation.” It focuses on Effectiveness. The
mean will most likely also be improved.
– Decrease defect rate
– Increase Process Yield
Improvement
Lean and Six Sigma
Six Sigma = Breakthrough Process Improvement Teams focused on eliminating
chronic problems and reducing variation in processes.
Lean = Rapid Improvement Teams focused on dramatically improving process
speed, and the elimination of the eight deadly wastes.
IMPROVED
EFFICIENCY
Improve
Process-
Pull
Control
Process
Analyze
Process-
Flow
Measure
Value
Define
Value
IMPROVED
EFFECTIVENESS
Improve ControlAnalyzeMeasureDefine
Lean Six Sigma
• Lean Six Sigma is an approach to integrating the power of Six Sigma Tools and Lean Enterprise
Tools which can be applied within an organization to create the fastest rate of improvement,
maximize shareholder value, and increase customer delight.
Improve
Process-
Pull
Control
Process
Analyze
Process-
Flow
Measure
Value
Define
Value
Improve ControlAnalyzeMeasureDefine
Which Technique to Begin With?
It is often advantageous to begin with Lean
projects.
–These are easier to understand and implement.
Begin with streamlining processes and Rapid
Improvement Events.
–This gets the operation in good order.
–Chronic problems are now easier to deal with.
–“Low Hanging Fruit” is eaten.
Next, select Six Sigma projects
Lean Projects
• Use Lean when you are trying to streamline any
process and reduce process waste.
–Improve assembly line throughput
–Reduction in Finished Goods Inventory
–Reduce the time to process new proposals
–Reduce machine setup time
–Improve order processing time
Six Sigma Projects
• Use Six Sigma where process metrics are more
difficult to collect or understand, and project
success requires analysis of multiple input factors
(Xs). These are often chronic problems.
–Improve yield on a continuously running machine
–Reduce defects on a processes with multiple inputs and
process settings
–Reduce the amount of wait time for a call center
–Improve the number of quality new hires
Mixed Projects
• What happens when you start a Six Sigma Project and it turns into a Lean project?
– It is all about the correct tools.
– Use the Lean tools for project success.
• What happens if a Lean project turns into Six Sigma?
– Depending when this is discovered, it may mean going back to utilize some Six Sigma
tools before proceeding.
QUESTIONS???

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Six sigma vs lean

  • 1. Six Sigma Vs Lean Presented by MN Kiranmai, BSc (RN), MSc (Psychology) QI Officer Jazan
  • 2. DEFINITION OF LEAN SIX SIGMA • Lean Six Sigma is a methodology that relies on a collaborative team effort to improve performance by systematically removing waste; combining lean manufacturing/lean enterprise and Six Sigma to eliminate the eight kinds of waste (muda): Time, Inventory, Motion, Waiting, Over production, Over processing, Defects, and Skills (abbreviated as 'TIMWOODS')
  • 3. Learning Objectives 1. Understand DMAIC and Lean Methodologies. 4. Where are Six Sigma and Lean Methodologies used? 3. What are the tools used for Six Sigma and Lean? 2. What are the differences between Six Sigma and Lean?
  • 4. Y=F (X) • Lean Six Sigma is about improving what is important or “critical to the customer and quality (CTQ).” Y is the measurement of the CTQ that needs to be improved to meet customer needs. • Once you understand what the Ys are, (those things critical to customers and quality), measure them and compare them to the targets. Understand the process characteristics that may cause variation and then reduce this variation by controlling the process variables. These process variables are called the Xs. • There may be many Xs that can affect the Y. • This simple equation is used to help communicate what a project is trying to accomplish. If Y is a function of X, then identify the Xs with enough precision to first improve them and then control them. Once Xs are maintained, the Y will be met.
  • 5.
  • 6.
  • 7. DMAIC: Six Sigma DMAIC Methodology Control Improve Analyze Measure Define Test Hypotheses List Vital Few Xs Identify Control Subjects Develop Feedback Loops Develop Process Control Plan to Hold the Gains Implement, Replicate Select the Solution Design Solution, Controls, and Design for Culture Prove Effectiveness Develop Project Charter Determine Customers & CTQs Map High-Level Process Establish and Measure Ys Plan for Data Collection Validate Measurement System Measure Baseline Sigma Identify Possible Xs
  • 8. Six Sigma Methodology Y Xs Measure Analyze Improve Control Process Characterization Process Optimization Goal: Y = f ( x ) Define Practical Problem Statistical Problem Statistical Solution Practical Solution
  • 10. Sources of Variation y x Poor Design Changing Needs Measurement System Insufficient Process Capability Skills & Behaviours
  • 11. Lean Methodology Control Process Improve Process - Pull Analyze Process - Flow Measure Value Define Value Define Stakeholder Value and CTQs Define Customer Demand Map High-level Process Assess for 6S Implementation Measure Customer Demand Plan for Data Collection Validate Measurement System Create a Value Stream Attribute Map Determine Pace, Takt-time and Manpower Identify Replenishment and Capacity Constraints Implement S1-S3 Analyze the Value Stream Attribute Map Analyze the Process Load and Capacity Perform VA/NA Decomposition Analysis Apply Lean Problem Solving to Solve for Special Causes Conduct the Rapid Improvement Event Design the Process Changes and Flow Feed, Balance, Load the Process Standardize Work Tasks Implement New Processes Stabilize and Refine Value Stream Complete Process and Visual Controls Identify Mistake-proofing Opportunities Implement S4-S6 Control Plan, Monitor Results, and Closeout Project
  • 12. LEAN
  • 13. Why Define a Process as a Value Stream? –Focuses attention on what is important for the customer. –Identifies all the necessary components to bring a product or service from conception to commercialization. –Identifies waste inherent in processes and works to remove it. –Reduces defects in products and deficiencies in processes. –Focuses on improving specs and cost.
  • 14. VALUE Vs WASTE What Is Typically Found Lean Value Stream Management starts with defining value in terms of products and process capabilities to provide the customer with what they need at the right time and at an appropriate price. Value added Non-value added/waste
  • 15.
  • 16. Adapted from Taiichi Ohno The Eight Wastes 1. Overproduction—making or doing more than is required or earlier than needed. 2. Waiting—for information, materials, people, maintenance, etc. 3. Transport—moving people or goods around or between sites. 4. Poor process design—too many/too few steps, non- standardization, inspection rather than prevention, etc. 5. Inventory—raw materials, work-in-progress, finished goods, papers, electronic files, etc. 6. Motion—inefficient layouts or poor ergonomics at work-stations or in offices. 7. Defects—errors, scrap, rework, non-conformance. 8. Underutilized personnel resources and creativity—ideas that are not listened to, skills that are not utilized.
  • 17. History of Lean  Toyota  Ohno and Shingo  Flow of work  Small batch sizes  New philosophy  Womack “Mach. Changed World”  Eliminate Waste  Improve performance  Flexibility 1940 1952 1964 1980 1990 2000 2008  Just-in-Time  Schonberger “Japanese Mfg Techniques”  Takes TPS and imports to US  Added to 6s tool kit  Large quantities  Rapid pace  High training US war production TPS Lean JIT Lean 6s
  • 18. • Methods Results The Methods Lean & Six Sigma Higher Quality Lower Costs Culture Change Dashboard Results Improve Speed Sustain Performance Achieve Breakthrough
  • 19. Accelerated Change Management Support Pathway How to Think About Improvement The Juran Trilogy ® Plan Control Improve DFSS RCCA Lean Six Sigma Sporadic Spike Breakthrough Six Sigma & Beyond Chronic Waste COPQ
  • 20. Matching Improvement Process to Need Change Management Plan, Do, Study, Act (PDSA) Lean & Six Sigma DMAIC Design for Lean Six Sigma Small Gains or Clear Solution Launch New Product, Service, or Process Large Gains Medium Gains
  • 21. Lean and Six Sigma LEAN = Improvement principles focused on dramatically improving process speed and eliminating the eight deadly wastes. Improve Process- Pull Control Process Analyse Process-Flow Measure Value Define Value SIX SIGMA = Breakthrough Process, Design, or Improvement Teams focused on eliminating chronic problems and reducing variation in processes. Improve ControlAnalyzeMeasureDefine
  • 22. Lean Project Attributes • Simply stated: “Lean is about moving the Mean.” It focuses on efficiency. – Lean reduces average cycle time. – Lean reduces excess inventory. – Lean improves average response time. Improvement
  • 23. Six Sigma Attributes • Simply stated: “Six Sigma is about Reducing Variation.” It focuses on Effectiveness. The mean will most likely also be improved. – Decrease defect rate – Increase Process Yield Improvement
  • 24. Lean and Six Sigma Six Sigma = Breakthrough Process Improvement Teams focused on eliminating chronic problems and reducing variation in processes. Lean = Rapid Improvement Teams focused on dramatically improving process speed, and the elimination of the eight deadly wastes. IMPROVED EFFICIENCY Improve Process- Pull Control Process Analyze Process- Flow Measure Value Define Value IMPROVED EFFECTIVENESS Improve ControlAnalyzeMeasureDefine
  • 25. Lean Six Sigma • Lean Six Sigma is an approach to integrating the power of Six Sigma Tools and Lean Enterprise Tools which can be applied within an organization to create the fastest rate of improvement, maximize shareholder value, and increase customer delight. Improve Process- Pull Control Process Analyze Process- Flow Measure Value Define Value Improve ControlAnalyzeMeasureDefine
  • 26. Which Technique to Begin With? It is often advantageous to begin with Lean projects. –These are easier to understand and implement. Begin with streamlining processes and Rapid Improvement Events. –This gets the operation in good order. –Chronic problems are now easier to deal with. –“Low Hanging Fruit” is eaten. Next, select Six Sigma projects
  • 27. Lean Projects • Use Lean when you are trying to streamline any process and reduce process waste. –Improve assembly line throughput –Reduction in Finished Goods Inventory –Reduce the time to process new proposals –Reduce machine setup time –Improve order processing time
  • 28. Six Sigma Projects • Use Six Sigma where process metrics are more difficult to collect or understand, and project success requires analysis of multiple input factors (Xs). These are often chronic problems. –Improve yield on a continuously running machine –Reduce defects on a processes with multiple inputs and process settings –Reduce the amount of wait time for a call center –Improve the number of quality new hires
  • 29. Mixed Projects • What happens when you start a Six Sigma Project and it turns into a Lean project? – It is all about the correct tools. – Use the Lean tools for project success. • What happens if a Lean project turns into Six Sigma? – Depending when this is discovered, it may mean going back to utilize some Six Sigma tools before proceeding.