Lean Six-Sigma 101


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Introduction to Lean Six-Sigma. Presentation from my 1-Day Workshop

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  • Valuestream (depict)Who owns QualityNon S-x-Sigma ViewSilosDeveloper: I own Quality. Measured by Code CoverageTester: I own Quality. Measured by DDESupport: I own Quality. Measured by SLAs.No Silos – Focus on CustomerAll own Quality, which is connect with CustomerBrahma: CreationValue-stream puts new products in the hands of the customerDevelopment: Constructs new productsTesting: Assures that expected functionality is deliveredSupport: Helps new users up the rampVishnu: SustenanceSupport: Channels product improvement opportunities to developmentDevelopment: Implements product improvementTesting: Assures that incremental benefit is deliveredValue-stream produces improvement based on feedbackShiva: DestructionSupport: Stewards products nearing the end of their life-cycle Development: Retires the productMahesh:
  • Mindset spills-over departmental lines as Functions participate in acts of creation, sustenance and destructionto serve a customer through the lifecycle
  • .
  • Here is where Lean differs from traditional six-sigma ..
  • Here is where Lean differs from traditional six-sigma ..
  • Right Panel:Credibility! Support the assumptions underlying the business case prepared in DEFINE step. Make sure the data lend credence to the financial justification.
  • Lean Six-Sigma 101

    1. 1. WHAT is lean six-sigma?(And what is it not?)
    2. 2. • Six-Sigma is process- focused Fix the process, and the outcome shall take care of itself.• A process has measurable outcomes Measurement is a prerequisite to improvement • The outcomes follow the laws of statistics Normal Distribution
    3. 3. Tightening the bell-curve means reducing the spread to make a process reliableWhen acceptable variation is within 6 of the mean, the no. of defects is only 3.4 per million opportunities.
    4. 4. ALWAYSALWAYSALWAYSALWAYSALWAYSTackle variation before adjusting the mean
    5. 5. LEAN SIX-SIGMA
    6. 6. Lean Six-Sigma is aframework that provides a structured approach toeliminate waste and improve customer satisfaction
    7. 7. Generic architecture that can be customized IS to the needs of a specific problemframework IS An opportunity for to knock oneself out with statistics NOT A series of logical steps with a quantifiable IS business outcomestructure IS A substitute for work! NOT A defect, a.k.a. customer pain ISwaste IS Second-guessing the customer NOT The consumer of a process outputcustomer IS IS Only the consumer of the company’s product or service NOT
    8. 8. WHERE is lean six- sigmaapplicable?
    10. 10. NO PAIN NO GAIN Culture of Empowerment Six-Sigma likely to succeedEmployees set their own goals basedon team goals Employees are the source of ideasEmployees are responsible for their and managers facilitate successfulcareer path and managers provide outcomesdevelopment feedback to set them upfor success NO PAIN NO PAIN Culture of Dependency Six-Sigma likely to failManagers set goals for employees An employee must take manager’s permission when stepping outside the scope of assigned tasksManagers hand out report-cards toemployees judging past performance
    12. 12. MANUFACTURING OR SERVICESOUTCOMES ARE PRODUCED BY ALEAN PRINCIPLES CAN BE APPLIED TO: •Suitcases lost at an airport •Rooms not available in time for check-in at a hotel When acceptable variation is within 6 of the mean, the no. of defects is only 3.4 per million opportunities.
    13. 13. Constructs products Unpacks and installs Help-deskDevelopment Testing Deployment Launch App Support Engineering Assures fitness for use Imparts training Maintenance
    14. 14. BEFORE Lean Six-Sigma view of Each department has its success own Firmly rooted in its specialization thatThe success of one has very little to do with of
    15. 15. AFTERLean Six-Sigma[mythological interlude]
    16. 16. BRAHMA [God of Creation] SHIVA [God of Destruction] VISHNU [God of Sustenance]
    17. 17. BUILD PRODUCT SUSTAIN PRODUCT RETIRE PRODUCT Creates new Channels Ramps-downD products S change-requests S usage Assures fitness Refines and Retires oldT for use D improves product D product Ramps-up users Assures systemS quickly T integrity TD Development T Testing S Support Helpdesk
    18. 18. AFTER Lean Six-SigmaMindset spills-over departmental linesas Functions participate in acts of creation, sustenance and destructionto serve a customer through the IT product lifecycle
    19. 19. HOW shall Iapply leansix-sigma?
    21. 21. DEFINE 1. Customer RequirementsVoice of Customer (Voc) Effort mustState the customer’spain area connect• Starting point for launching an effort with the• Speak the customer’s business of language the organization. Return on Investment (RoI) Build the Business Case E.g. An initiative to reduce the volume of customer support requests may use a template for RoI as Cost to support tickets on recurring basis v. Cost to implement application-fix
    22. 22. DEFINE2. Process FlowValue-stream mapping with SIPOC Effort must connect with the business of the organization.
    23. 23. SUBWAY MAPThe focus is on getting a passenger from Point A to Point B
    24. 24. S 1. A process is a series of stepsI 2. Each step is a verb representing an action taken, such as • Define •P • Plan Analyze • Submit • Summarize 3. The action adds valueO – or it should be eliminatedC
    25. 25. S 1. Each step in a process produces an outcomeI 2. The outcome is a noun, representing output delivered, such as:P • Product Definition • Forecast of Sales 3. The outcome is associated withO Critical to Quality metrics (CTQs)C
    26. 26. S 1. Each output has an intended recipientI called customer 2. The customer signs- off on the output based on its CTQs.P S/he may: • Accept unconditionally • Accept conditionally,O with left-on-table items clearly listed • RejectC
    27. 27. S 1. A process consumes inputs 2. Each input is a noun,I representing an input consumed, which could be the output of a previous stepP 3. Each input may be qualified by CTQs and require the sign-off ofO process ownerC
    28. 28. S 1. The provider of an input is called supplierI 2. The supplier of an input is accountable for satisfying CTQs and negotiating sign-P off by customerOC
    29. 29. DEFINE 3. Potential PROJECT CHARTER1. Project Title & 2. Project Manager & Effort 3. Business Need must connect Description Authority Level Why is the project What is the project? Who is given authority to being done lead the project and can he/she determine, manage and approve changes to budget, staffing, schedule, with the etc. business of the organization.4. Business Case 5. Resource Pre- 6. Stakeholder Analysis Financial or other Assignment Who will affect or be basis that justifies the Men & Materials affected by the project project – as known to date.
    30. 30. DEFINE 3. Potential PROJECT CHARTER6. Stakeholder Analysis 7. Deliverables SMART Goals Effort must connect• Stakeholder End-result of the • Specific Requirements as project in terms of • Measurable with the known specific outcomes and• Triple Constraints the tangible form in • Attainable Model (Pentagon) which they will be • Realistic delivered. business of • Time-bound the organization.8. Constraints & • Sponsor Assumptions Authorizes the A constraint is any project. limiting factor and an assumption is something taken to be true but which may not be true. Risk
    31. 31. DEFINE establishes there is a problem.MEASURE sizes the problem, andVALIDATES some of the assumptions.Is it as big as we thought? BIGGER?
    32. 32. MEASURE4. Refined Project Definition5. Capable Measurement System6. Data Collection Cast the objective Measurement Plan in measurable To collect data to corroborate the business case made in Run Chart terms. Data DEFINE phase.• What data is relevant to Speaks! collect ..• .. to establish the magnitude of the problem?• How it shall be collected?• How it shall be presented?
    33. 33. FIND THE “Y” AS INY characterizes the process in a way that the customer cares about
    34. 34. MEASURE S I P O C Cast the objective C O P I S in measurable y  f (x) terms.Lean Six-Sigma, “y” is simply somethingabout the process that the customer wouldcare about DataTraditional six-sigma treats “y” as ameasurable characteristic of the process Speaks!outputLean Six-Sigma, “y” can simply be thenumber of tickets logged by an IT Helpdeskin a particular category.
    35. 35. MEASURE CASE-STUDY Cast theBackgroundOne wireless company had a objective17% (170,000 parts permillion) level of rejected in measurable terms.service orders.There were over 30,000errors per month, which, at Data RUN CHART – Defects per week over a 6an average cost of USD month window12.50 to fix (wage cost only),cost USD 375,000 permonth. Over 50 temporaryworkers had been hired todeal with the 2-month Speaks!backlog of unfixed errors.The objective was to cut thislevel of rejects in half (9%)by the end of the year. PARETO – 80% defects from 6 transaction codes
    36. 36. Asinformationsystems getmorecomplicated ..
    37. 37. .. there aremore movingparts andinterdependencies
    38. 38. The requirements for adding, changing, and deleting data are oftentoo loose, too tight, or nonexistent, which leads to errors and rejectedtransactions that must be corrected manually by people hunched over computer terminals for 8 hours a day.
    39. 39. MEASURE CASE-STUDY Cast the Outcome objective Programmers took 4 months to in measurable terms. implement the solution. The changes completely eliminated the two top service-affecting errors, and three of the four record-affecting changes. It cut total errors by 77%. This reduction translated to USD 299,426 per month in savings— Data over USD 3 Million per year. Speaks!Root-cause analysis showed that the top categories could be eliminated bybaking appropriate business rules into IT
    40. 40. A significant BUILD PRODUCT SUSTAIN PRODUCT HowPRODUCT the RETIRE doeschunk of lean supportprojects can helpdesk seeoriginate in the itself?maintenance (a.) I am here to resolve as manyphase of the tickets as fast aslifecycle possibleAlthough projects can (b.) Why do thesestart in any phase. tickets arise in the 1st place? I am here to eliminate tickets for Creates new Channels Ramps-down good. D products S change-requests S usage Assures fitness Refines and Retires old T for use D improves product D product Ramps-up users Assures system S quickly T integrity T D Development T Testing S Support Helpdesk
    41. 41. ANALYZE 7. Enumeration of Potential ‘X’ 8. Ranking & PrioritizationStatistical Tools Find the• Pareto Analysis root causes• Ishikawa• ANOVA Group Activities • Brainstorm and identify• Design of Experiments • Sticky-Notes the vital few.Software• Excel• QI Macros for SPC• Minitab
    42. 42. ANALYZE Find the root causes and identify the vital few.And all for the want of a horseshoe nail.
    43. 43. IMPROVE9. Define focus ‘X’ 10. Fix ‘X’ Focus on the vital few to drive business outcomes. Decide which root causes to focus on, and how
    44. 44. CONTROL is the counterpart ofMEASURE. Measure sizes the problem.CONTROL shows it has gone away ordiminished as a result of IMPROVE.
    45. 45. BEFORE AFTER
    46. 46. Senior Manager MonsantoSanjay Bhatikar, PhD Bangalore, INDIA sanjay.bhatikar@gmail.com