1 7001A 1-02D Identify Lean Six Sigma Opportunities UoC7001A_91558NSW CLR

1Identify Lean Six Sigma Opportunity

91558NSW Graduate Certificate in Lean Six Sigma

Unit 7001A Apply Lean Six Sigma Fundamentals


Unit 7001A Apply Lean Six Sigma Fundamental Skills and Knowledge

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Curriculum under License from

Lean Six Sigma Australasia

Lean Six Sigma Graduate Program

Accreditation Program

Introduction to Lean Six Sigma

Investigating Dysfunction

Identifying Project Opportunities



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Graduate Certificatein Lean Six Sigma

Accreditation Program

Units of Competency

Project Portfolio Assessment




Lean Six Sigma Graduate Programwithin the Qualifications Framework

91557NSW Graduate Diploma of Lean Six Sigma


8

One Recognised Level of Accreditation in the Australian

Qualifications Framework

Bachelor Honours Degree

Graduate Certificate

Graduate Diploma

Higher than a Bachelor Degree7

Units of Competency forGraduate Certificate

You must obtain skills and knowledge to evidence competency in these units

Demonstrate a holistic understanding of the disciplined approach to problem solving with a project portfolio

(a minimum of two projects is required)

Unit Code Unit Title Required evidence

91558NSW Vocational Graduate Certificate in Lean Six SigmaLSSGB7001A Apply Lean Six Sigma fundamental

skills and knowledgeUse the DMAIC framework and demonstrate knowledge of basic concepts

LSSGB7002A Structure and validate a viable project

A comprehensive project charter document

LSSGB7003A Analyse Customer Segmentation and Identify Requirements

Segmentation report. Customer Critical Requirements analysis

LSSGB7004A Collect and Stratify data for analysis Data stratification matrix. Data Collection Plan

LSSGB7005A Perform basic statistics & graphical analysis

Show descriptive statistics, and a graphical distribution for project data

LSSGB7006A Calculate simple specification tolerance to process performance

Show process capability in relation to count of defects

LSSGB7007A Determine probable cause using qualitative techniques

Show documentary use of team generated C&E Matrix, FMEA or equivalent

LSSGB7008A Achieve process stability using work control systems

Demonstrate use of analytical approach to work control either from project execution or work example

LSSGB7009A Use structured lateral thinking techniques and develop criteria based solution evaluation

Show documentary use of team generated solution evaluation matrices and conclusions

LSSGB7010A Pilot and evaluate a proposed solution

Pre-pilot plan, documentation of the pilot and findings/conclusions

LSSGB7011A Plan and control an improved process commissioning

Documentation of the process control plan, updated SOPs, Process mapping, handover meeting evidence. Improved process quantified by gap analysis




Assessment

A range of assessment strategies is employed for this graduate program and the choice of strategy is dependent on the nature of the unit of competency. Strategies include:

demonstrations,

observation,

projects,

presentations,

knowledge tests,

reports and interviews

1. Follow the disciplined approach,

2. listen to your coach and sponsor,

3. keep good records from the start and you will naturally be prepared and become competent from working your projects

Advice

Project Portfolios

As a natural output of executing a Lean Six Sigma project which necessitates the five phases of official reporting back to the organization of findings and progress: The Define, Measure, Analyse, Improve and Control phase reviews make up the major component of the evidence for a project portfolio.

It is important to keep detailed project notes and presentations as you execute all your projects. If you follow the disciplines of the approach there will be little need to put together a special evidentiary package for the assessment.

Force-Field Analysis

BrainstormingGoal

Value Stream

MapAffinity Diagrams

Pareto Chart

Nominal Group Technique

1 Item Number

Card Rating Value 6

Idea Scores

Idea 1 Totals

8,8,6,7,8,2 6/39

Idea 2

6,5,4,7,3 5/25

Idea N

3,2,2,1 4/8

Check Sheets

Defect Mon. Tue. Wed. Thurs. Fri. Week Total % of Total

Scratch ll lll ll lll llll 14 67%

Dent l l l 3 14%

Chip l l l 3 14%

Bend l 1 5%

Total Defects 21

Casing Defect Tracking

Ishikawa Diagram

Fault Tree Analysis

FMEA

Likeliness of Failure: 1-10 with 10 representing most likely

Detectability of Failure: 1-10 with 10 representing most difficult

Severity of Failure: 1-10 with 10 representing most severe

Risk Priority = (Likeliness of Failure) X (Detectability of Failure) X (Severity of Failure)

Failure

Mode

Specific Cause Effect of Failure Likeliness

of Failure

Detectability

of Failure

Severity of

Failure

Risk

Priority

Gas will not

shut off

Spring broke

preventing valve

from closing

Explosion resulting in

property damage

and/or serious injury

3 5 10 150

C&E Matrix

Define

phase

documents

Measurephase

documents

Analysephase

documents

Improvephase

documents

Controlphase

documents






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Learning Objectives

Realize the benefits of the synergy built into Lean Six Sigma

Understand a brief History of Six Sigma and Lean

Realize the importance of each of the five Phases of the D.M.A.I.C. process and their sub-phases

Understand the Lean Six Sigma problem solving approach

Introduce the Basic and Advanced toolkits






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The Lean Six Sigma Concept

A Brief History

Structured Discipline

The Modern Market Drivers ofOrganizational Improvement

Quality is driven by customer expectation, it is a must in the modern marketplace

Quality is also demanded to better the competition

Customer loyalty and retention is critical

Lowering costs generates greater opportunity to realize economic profit

The need for lower invested capital still means getting more output with less without effecting quality

Customers are demanding shorter and more predictable lead times

Lean Six Sigma optimizes capacity, reduces process lead time performance and eliminates variability in all processes




Lean Six Sigma is the Integration of Two Powerful Business Improvement Approaches...

Lean Six Sigma combines; Lean Enterprise and Six Sigma into a commondisciplined framework

Establishes a common methodology and language across the whole organization

Common terminology enables more rapid replication of successes as commonly understood best practices across the organization

Establishes a single framework for solving process problems in all areas of organization e.g. Sales, Marketing, Customer Services, IT and Manufacturing can interact seamlessly with other services solving end to end improvement opportunities,

Stream-lines project prioritization and selection into one funnel of opportunities

Equips project leaders a greater opportunity to select the right approach from a vast range of tried and tested tools and techniques at the right time, regardless if the need is for a rapid lean event or a rigorous six-sigma investigation

Best of Both Worlds

LEAN Speed enables SIX SIGMA Quality

Reduces complexity meaning less variation

SIX SIGMA Quality enables LEAN Speed

Fewer defects meaning less time and rework

LEAN SIX SIGMA

productivity




Benefits of IntegratingLean and Six Sigma Initiatives

Lean and Six Sigma can co-exist independently, but the benefits of integration are tremendous. For instance, Lean Six Sigma:

Provides a single channel for employing limited resources to continuous improvement efforts

Provides one integrated improvement strategy for the whole organization

Is a highly productive and profitable synergy of two proven disciplines

As a single integrated approach avoids the pitfalls of wasting time re-inventing tools that already exist in either the Lean or Six Sigma toolsets.

Disadvantages of NOT IntegratingLean and Six Sigma Initiatives

The pitfalls of not combining Lean and Six Sigma include

Limiting the potential to resolve problems by limiting available toolsets

Limiting effective probing investigation into root causes of dysfunction

Limit essential business skills, knowledge and practices that would otherwise greatly advantage development of future leaders

Adding unnecessary complexity to process improvement initiatives

Limits assigned resources, teams and organizations from thinking more laterally about potential ways of developing improvement solutions






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A Brief History


Learning Objectives

Gain appreciation for the evolution of Lean Six Sigma

Understand a brief history of Six Sigma

Understand a brief history of Lean

Be more familiar with some terms, tools and methods of Lean Six Sigma

Realize the synergies that naturally led to the development of Lean Six Sigma




Industrial Evolution

Lean Six Sigma is a culmination of generations of evolutionary DNA from the industrial revolution in a quest for greater efficiency and effectiveness in processing

At the roots of continuous improvement we can find the beginnings of

Taylors Time studies,

Eli Whitney Product Standards and

Craft Production

Henry Fords vision for low cost automobile production was rivalled by GMs and later Chryslers variety of choices models.

Industrial Evolution (cont)

Toyota created Lean to achieve and also surpass both Fords, GMs and Chryslers production models.

Which in the mix was heavily influenced by:

Shewharts Statistical methods,

Taguchis Customer focus,

Demings Systems Thinking,

Baldridge and Shingos standards

Then we have the development of postmodern systems in

TQM; Total Quality Management,

TPM; Total Productive Maintenance,

Zero Defects

10

Identify Lean Six Sigma Opportunity



Industrial Evolution (cont)

Mid 1980s saw the commencement of John Smiths acclaimed Motorola evolution Six Sigma to counter superior cost and quality of Japanese electronics manufacturer competitors

In the late 1990s:

Jack Welch and Bossidys work on organizational infrastructure and

The George Groups brilliant fusion of these converging evolutionary strands finally merged into the universally adopted culmination of worlds best practice that resides within the Lean Six Sigma framework.

A Brief History ofSix Sigma

Commenced as a rigorous transformation effort to deliver high quality goods to meet customer satisfaction with lower invested capital

Motorola is acclaimed as the first advocate in the 80s; which gathered momentum in late 80s and early 90s

Six Sigma involves the use of statistical and graphical tools and structured problem-solving disciplines to solve high payback projects

Historically early project implementers were called Top Guns, Change Agents, and Trailblazers, and now a more common term of Black Belts

Black Belts were expected to deliver annual financial benefits through 3-6 projects per year

Companies who popularized Six Sigma include GE, Allied Signal, Sony, ITT, Caterpillar, and Bombardier

Today most medium to large organizations internationally have a type of continuous improvement framework

11




Six Sigma Terminology

Sigma is a Greek symbol () used in statistics to denote Standard Deviation

A key measure of variability in a dataset

Sigma commercially also alludes to the need to control both the variability in performance as well as the average activity within processes

Six Sigma Quality

Sigma Quality Level is a traditional measure used to indicate and highlight how often defects are likely to occur.

A reminder that 99% Yield is not good enough:

Unsafe drinking water almost 15 minutes each day.

2 short or long landings at most major airports each day.

No electricity for almost 7 hours per month.

Also referred to as 3.4DPMO (Defects per Million Opportunities).

Rolled Throughput Yield (RTY) is the probability that a product will pass through the entire process without rework and without any defects.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000

Ro

lle

d T

hro

ug

hp

ut

Yie

ld

Number of Parts/Process Steps

Impact of Complexity on Rolled Throughput Yield

4

5

6

Why Six Sigma Is the Goal

For complex products and systems requiring 1,000s of process steps, 6is necessary to produce or perform defect-free more than 90% of the time RTY= Y1 x Y2 . . . Yn (n = number of process steps)

12




Historic Results that Popularized Six Sigma: General Electric in the 1990s

General Electric GE annual reports state that Six Sigma delivered:

1997| $300 million to its operating income.

1998| $750 million to the bottom line.

Additional inspiring GE annual report examples:

10-fold increase in life of medical CT scanner x-ray tubes.

Improved yields of super-abrasives worth a full decade of increased capacity despite growing demands.

62% reduction in turn-around time of railcar leasing repairs.

Plastics business added 300 million pounds of new capacity equivalent to capitalizing one free plant.

Competitors of GE and other Trailblazing companies saw huge benefits of a Six Sigma culture and started to adopt

A Brief History of Lean Enterprise

Commenced with innovative production techniques started as early as Henry Ford and the Ford Motor Company

The main concept was mass developed by Toyota

Their was early adoption by other Japanese manufacturers

Forced into discovery much later by Western manufacturers needing to compete against new generation of low cost high quality Japanese goods

Popular terms that refer to Lean techniques are:

Toyota Production System (TPS)

Just-In-Time

Lean or Lean Enterprise

Originally focused on reducing waste in manufacturing

Now a global phenomenon delivering transformational gains across markets in most segments including transactional, service and most traditional business environments

13




Lean Focuses on Eliminating the Seven Deadly Wastes (TIMWOOD)

The seven deadly wastes inherent in every process

Increased Quality

Increased Flexibility

Increased Innovation

Increased Responsiveness

Increased Employee Enthusiasm

Less Indirect Labor Requirements

Less Direct Labor Requirements

Less Space Requirements

Benefits

of elimination

Transportation

Unnecessary Motion

Waiting

Over-production

Over-Processing

Defects & Spoilage

Inventory

T

I

M

W

O

O

D

excess travel distance due to poor layout or part design

Storage/Warehousing; excess inventory and/or movement of materials

Trunk movements. Poor ergonomics of workstation.

Idle Time/Search Time; looking for and waiting for parts or instructions to be delivered

Build more parts than are required, exceed customers tolerance/requirements

Doing more than customer needs. Long time to changeover between products

Rework and scrap doing the same job more than once

MUDATIMWOOD

Historic Lean Results in

Western Manufacturing during the 1990s

Concept to Launch 7 Yr 3 Yr

Welding to Finished Car 6 Wk 3 Days

Inventory (Days on Hand) 17 Days 3 Days

Defects Per Million Parts

Supplied Parts 10,000 100

Off the Line 100 25

1991 1997Porsche

14




Order To Ship Cycle Time

Strategy

Working Capital

Op Margin

Inventory Turns

ROI

5Min

Make to Order

($9M)

8%

121

34%

11 Days

Build to Inventory

$12B

(2%)

10

3%

HP

Historic Lean Results

as the West catches-Up Dell versus HP

Historic Lean ResultsBoeing

Boeing is the first to build large commercial jets on a moving assembly line (Boeing 737)

By adopting lean and reorganising the factory workflow, they achieved big savings, four keys advances, were:

Standardised parts and procedures

Use of uniform parts and consistent assembly processes speeds output

Visual Management Signals

Traffic light like indicators quickly gauge production status

Point of Use Carts

Trolleys deliver information, tools and equipment to workers where and when they need them

Feeder Supermarket Lines

Pre-assembling components on these lines speeds installation

Before Lean:

Lead Time =

200+ Days

After Lean:

Lead Time =

20 Days

15




Lean Tools and Terminology

Setup Time Reduction

Total Productive Maintenance

Process Balancing

Process Flow Improvement

Mistake Proofing

Visual Control Tools

Sales and Operations Planning

Value Stream Mapping

Time Trap Analysis

Generic Pull Systems

Replenishment Pull

Analytical Batch Sizing

Stocking Strategy

5S

Lean Goals: Highest Quality, Lowest Cost, Shortest Lead Time

The historic innovations of theLean Six Sigma Concept

Combine the strategy and solution sets inherent in Lean with the cultural, organizational process and analytical tools of Six Sigma

With the result that we

Respond to our Customers

Better, Faster and with Less Waste

S I X S I G M A

L E A N

16




Six Sigma and Lean Contributions

Six Sigma is the Unifying Framework Six Sigma provides the over-riding methodology

D.M.A.I.C.: Define, Measure, Analyse, Improve and Control

D.M.E.D.I.: Define, Measure, Explore, Develop and Implement

The Design for Lean Six Sigma (DFLSS) project discipline

Six Sigma provides the improvement infrastructure

Six Sigma provides the burning platform for improvement

Lean provides Practical point of execution methods

Key Lean analytical tools to visualize problems and pin-point where to focus efforts

Powerful improvement tools to rapidly effect operations by reducing waste and increasing process speed

A base platform for workforce to get involved with improvements

Key Learning

Understand the historic roots of modern Lean Six Sigma

Explain how Six Sigma and Lean have examples of great success globally

Recognise the unification synergies of past methodologies into modern Lean Six Sigma

17






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A Brief History


Laws of Lean Six Sigma

Base Law of Lean Six Sigma: The Law of the Market Critical Customer Requirements are always the highest priority

First Law of Lean Six Sigma: The Law of Flexibility Process velocity is directly proportional to the flexibility of a given

process

Second Law of Lean Six Sigma: The Law of Focus 20% of activities cause 80% of delays in a given process

Third Law of Lean Six Sigma: The Law of Velocity Velocity of any given process is inversely proportional to variation

in supply and demand, and the number of things in process

Adapted from the book Lean Six Sigma Michael George, publisher McGraw-Hill

18




Key Perspective toSucceeding at Lean Six Sigma

The three most important things in a Lean Six Sigma implementation

are

Focus

Focus

Focus

Some Lean Six Sigma Project Focus Questions

Who are our customers?

What are their most important requirements?

What are our business priorities?

What is our current process lead time?

Where is the Time Trap operation in our process?

What projects should we work on first?

What improvement tools and techniques should we use?

19




DMAIC Funnel Concept and theProject Discipline

Many prioritized projects in hopperNext Project Selected

Charter prepared and validated

What is happening?

Project Baseline Measured

Y = f(x)

Find Potential Root Causes

Root Causes Identified

and Verified

Generate the solution?

Improvements Piloted

and Measured

Sustain the gainsSelf-sustaining

Institutionalize

Process

Measure

Analyse

Improve

Control

Define

Develop Project Charter

Create High Level Process Map (SIPOC)

Data Collection and Integrity

Compare Process

Performance

Narrow Potential

Causes (Xs)

Validate Critical Causes (Xs)

CaptureQuick-Win

Opportunities

Develop Potential Solutions

Optimise Best

Solution

Plan & Execute

Pilot

Plan & Execute Full Scale

Implementation

Monitor, Control & Transition

Process

Validate Benefits &

Close Project

Collect & Translate Voice

of the Customer


Define

Milestone Review

Measure

Milestone Review

Analyse

Milestone Review

Improve

Milestone Review

Control

Milestone Review

3

2

1

6

5

4

9

8

7

12

11

10

15

14

13

Lean Six Sigma DMAIC Milestone Map15 Focus Steps

20




Problem Solving Approacha Practical Guide

1. Practical ProblemOur customers feel we take too long on quotes.

2. Graphical ProblemCreate an as-isValue Stream Map

3. Analytical ProblemWhy do our quotes spend 63% of their time waiting?

4. Analytical SolutionPareto of wait time in each step of the process

5. Graphical SolutionCreate a future state Value Stream Map with improved lead time

6. Practical SolutionCo-locate, implement a Work Control System and Mistake-Proof

The Statistical/ Analytical Thinking Approach

Y= Output (Key Process Output)

f = function equation

X = Input (Key Process Input)

X1, X2, Xn = number of inputs that add up to equate to Y

Building the Transfer Function

Y = f (X1, X2, X3, Xn)

21




Define Phase

Project Charter: Scope, Goals, Metrics

Quality Time Cost Growth

VALUE STREAM MAP

Voice of the

Customer

(VOC)

Focus AreasVoice of the

Business

(VOB)

S I P O C

1

20,000 pcs/mo

Module=100

SUPPLIER

DistributionAssembly 2Assembly 1Forge Machine

Raw castings

Daily schedule

Forged material

Daily schedule

Forgings, bolts, nuts, washers

Daily schedule

Assy 1, o-ring, bearing, snap ring

Daily schedule

Receiving/Warehouse

2/D

ay

1/W

eek

Customer

1000 pcs 5000 pcs 100 pcs 200 pcs

20 sec 50 sec35 sec 40 sec

23.7 hours 92.1 hours 1.6 hours

Processing time

= 145 seconds

3 hoursProduction lead time

= 122.3 hrs

I

I I I I1 1 1 1

Assy 2

Daily schedule

1

MACHINING & ASSEMBLY

Forecast, 6 Month, Fax

Order, Weekly (5-day), FaxMRP

Forecast, 90/60/30 Day, Fax

Order, Daily, Fax

CUSTOMERSERVICE

MRP

PURCHASING

MRP

100 pcs

I100 pcs

I

Work Orders, Daily Release, Paper

100 pcs

1.8 hours

C/T = 30 Sec

C/O = 30 Min

Uptime 95%

Batch Size 100

P/T = 20 Sec

C/T = 45 Sec

C/O = 60 Min

Uptime 80%

Batch Size 100

P/T = 35 Sec

C/T = 60 Sec

C/O = 5 Min

Uptime 95%

Batch Size 100

P/T = 50 Sec

C/T = 50 Sec

C/O = 10 Min

Uptime 95%

Batch Size 100

P/T = 40 Sec

1

1

20,000 pcs/mo

Module=100

SUPPLIERSUPPLIER

DistributionDistributionAssembly 2Assembly 2Assembly 1Assembly 1ForgeForge MachineMachine

Raw castings

Daily schedule

Forged material

Daily schedule


Daily schedule


Daily schedule

Receiving/WarehouseReceiving/Warehouse

2/D

ay

1/W

eek

CustomerCustomer

1000 pcs 5000 pcs 100 pcs 200 pcs



Processing time

= 145 seconds


= 122.3 hrs

I

I I I I1 1 1 1

Assy 2

Daily schedule

1

MACHINING & ASSEMBLY MACHINING & ASSEMBLY




Order, Daily, Fax

CUSTOMERSERVICE

CUSTOMERSERVICE

MRP

PURCHASINGPURCHASING

MRP

100 pcs

I100 pcs

I


100 pcs

1.8 hours

C/T = 30 Sec

C/O = 30 Min

Uptime 95%

Batch Size 100

P/T = 20 Sec

C/T = 30 Sec

C/O = 30 Min

Uptime 95%

Batch Size 100

P/T = 20 Sec

C/T = 45 Sec

C/O = 60 Min

Uptime 80%

Batch Size 100

P/T = 35 Sec

C/T = 45 Sec

C/O = 60 Min

Uptime 80%

Batch Size 100

P/T = 35 Sec

C/T = 60 Sec

C/O = 5 Min

Uptime 95%

Batch Size 100

P/T = 50 Sec

C/T = 60 Sec

C/O = 5 Min

Uptime 95%

Batch Size 100

P/T = 50 Sec

C/T = 50 Sec

C/O = 10 Min

Uptime 95%

Batch Size 100

P/T = 40 Sec

C/T = 50 Sec

C/O = 10 Min

Uptime 95%

Batch Size 100

P/T = 40 Sec

1

Define 1. Determine VOC

2. Determine VOB

3. Determine Focus Areas

4. Develop Project Charter

a. Problem Statement

b. Scope

c. Goals

d. Key metrics

e. Team roles

5. Map the process

a. High level charts

b. As-is mapping

Measure Phase

Total Process Lead Time

Value Stream Map

1

20,000 pcs/mo

Module=100

SUPPLIER

DistributionAssembly 2Assembly 1Forge Machine

Raw castings

Daily schedule

Forged material

Daily schedule


Daily schedule


Daily schedule

Receiving/Warehouse

2/D

ay

1/W

eek

Customer

1000 pcs 5000 pcs 100 pcs 200 pcs



Processing time

= 145 seconds


= 122.3 hrs

I

I I I I1 1 1 1

Assy 2

Daily schedule

1





Order, Daily, Fax

CUSTOMERSERVICE

MRP

PURCHASING

MRP

100 pcs

I100 pcs

I


100 pcs

1.8 hours

C/T = 30 Sec

C/O = 30 Min

Uptime 95%

Batch Size 100

P/T = 20 Sec

C/T = 45 Sec

C/O = 60 Min

Uptime 80%

Batch Size 100

P/T = 35 Sec

C/T = 60 Sec

C/O = 5 Min

Uptime 95%

Batch Size 100

P/T = 50 Sec

C/T = 50 Sec

C/O = 10 Min

Uptime 95%

Batch Size 100

P/T = 40 Sec

1

1

20,000 pcs/mo

Module=100

SUPPLIERSUPPLIER

DistributionDistributionAssembly 2Assembly 2Assembly 1Assembly 1ForgeForge MachineMachine

Raw castings

Daily schedule

Forged material

Daily schedule


Daily schedule


Daily schedule

Receiving/WarehouseReceiving/Warehouse

2/D

ay

1/W

eek

CustomerCustomer

1000 pcs 5000 pcs 100 pcs 200 pcs



Processing time

= 145 seconds


= 122.3 hrs

I

I I I I1 1 1 1

Assy 2

Daily schedule

1

MACHINING & ASSEMBLY MACHINING & ASSEMBLY




Order, Daily, Fax

CUSTOMERSERVICE

CUSTOMERSERVICE

MRP


MRP

100 pcs

I100 pcs

I


100 pcs

1.8 hours

C/T = 30 Sec

C/O = 30 Min

Uptime 95%

Batch Size 100

P/T = 20 Sec

C/T = 30 Sec

C/O = 30 Min

Uptime 95%

Batch Size 100

P/T = 20 Sec

C/T = 45 Sec

C/O = 60 Min

Uptime 80%

Batch Size 100

P/T = 35 Sec

C/T = 45 Sec

C/O = 60 Min

Uptime 80%

Batch Size 100

P/T = 35 Sec

C/T = 60 Sec

C/O = 5 Min

Uptime 95%

Batch Size 100

P/T = 50 Sec

C/T = 60 Sec

C/O = 5 Min

Uptime 95%

Batch Size 100

P/T = 50 Sec

C/T = 50 Sec

C/O = 10 Min

Uptime 95%

Batch Size 100

P/T = 40 Sec

C/T = 50 Sec

C/O = 10 Min

Uptime 95%

Batch Size 100

P/T = 40 Sec

1

Data Collection PlanMeasurement

System Analysis Process Capability

Quick

Improvement

Measure

1.Identify the key process output variable - Y2.Calculate total Process Lead Time

3.Develop Data Collection Plan

4.Perform Measurement System Analysis

5.Develop Control Charts

6.Determine Process Capability

7.Establish Measurement Baseline

8.Identify Quick Improvement opportunities

550 570 590 610 630 650 670 690 710

LSL USL

Process Capability Analysis for Baseline

USL

Target

LSL

Mean

Sample N

StDev (Within)

StDev (Overall)

Cp

CPU

CPL

Cpk

Cpm

Pp

PPU

PPL

Ppk

PPM < LSL

PPM > USL

PPM Total

PPM < LSL

PPM > USL

PPM Total

PPM < LSL

PPM > USL

PPM Total

700.000

*

600.000

603.158

19

17.9494

17.3738

0.93

1.80

0.06

0.06

*

0.96

1.86

0.06

0.06

368421.05

0.00

368421.05

430173.27

0.03

430173.30

427884.92

0.01

427884.93

Process Data

Potential (Within) Capability

Overall Capability Observed Performance Exp. "Within" Performance Exp. "Overall" Performance

Within

Overall

8765432Subgroup 1

6.5

6.0

5.5

Sam

ple

Me

an

Mean=5.965

UCL=6.435

LCL=5.494

3

2

1

0

Sa

mp

le R

ang

e

R=1.770

UCL=3.039

LCL=0.5012

Xbar/R Chart for bore

Control Charts

22




Analyse Phase

Process Inputs

2701031Obtains Equipment

4590000Patient Returned

4590000Attendant Arrives

4590000Attendant Assigned

4590000Notifies of Return

000000Provide Therapy

4500009Transport Patient



6303039Patient Scheduled

TotalCorrelation of Input to OutputProcess Steps

Importance42445

Arrive with

proper

equipment

Dressed

properly Process Outputs

Take back to

room

promptly

Delivered via

correct

mode

Arrive at

scheduled

time

Process Inputs

2701031Obtains Equipment

4590000Patient Returned



4590000Notifies of Return

000000Provide Therapy

4500009Transport Patient



6303039Patient Scheduled

TotalCorrelation of Input to OutputProcess Steps

Importance42445

Arrive with

proper

equipment

Dressed

properly Process Outputs

Take back to

room

promptly

Delivered via

correct

mode

Arrive at

scheduled

time

96628Employees trainedFloTrain employees2564Finger8Faucet not

allowed to run

and cool

8Coffee too strongWater too

warm

112728Employees trainedFloTrain employees3609None5Water spilled

from carafe

8

24318Carafe replacedMelReplace carafe1284Visual inspection4Faded level

marks on

carafe

8Coffee too strong or

too weak

Wrong amount

of water

Fill carafe with

water

What are the

completed actions

taken with the

recalculated RPN?

What are the

actions for

reducing the

occurrence of the

cause, or

improving

detection?

What are the existing

controls and

procedures

(inspection and test)

that prevent either the

cause or the Failure

Mode?

What causes

the Key Input

to go wrong?

What is the impact

on the Key Output

Variables

(Customer

Requirements)?

In what ways

does the Key

Input go

wrong?

What is the

process step

and input

under

investiga-

tion?

O

C

C

U

R

A

N

C

E

D

E

T

E

C

T

I

O

N

Actions

Recommended

Resp. Actions

Taken

S

E

V

E

R

I

T

Y

Potential

Causes

O

C

C

U

R

A

N

C

E

Current Controls D

E

T

E

C

T

I

O

N

R

P

N

R

P

N

S

E

V

E

R

I

T

Y

Potential

Failure Effects

Potential

Failure Mode

Process Step/

Input

96628Employees trainedFloTrain employees2564Finger8Faucet not

allowed to run

and cool

8Coffee too strongWater too

warm

112728Employees trainedFloTrain employees3609None5Water spilled

from carafe

8

24318Carafe replacedMelReplace carafe1284Visual inspection4Faded level

marks on

carafe

8Coffee too strong or

too weak

Wrong amount

of water

Fill carafe with

water

What are the

completed actions

taken with the

recalculated RPN?

What are the

actions for

reducing the

occurrence of the

cause, or

improving

detection?

What are the existing

controls and

procedures

(inspection and test)

that prevent either the

cause or the Failure

Mode?

What causes

the Key Input

to go wrong?

What is the impact

on the Key Output

Variables

(Customer

Requirements)?

In what ways

does the Key

Input go

wrong?

What is the

process step

and input

under

investiga-

tion?

O

C

C

U

R

A

N

C

E

D

E

T

E

C

T

I

O

N

Actions

Recommended

Resp. Actions

Taken

S

E

V

E

R

I

T

Y

Potential

Causes

O

C

C

U

R

A

N

C

E

Current Controls D

E

T

E

C

T

I

O

N

R

P

N

R

P

N

S

E

V

E

R

I

T

Y

Potential

Failure Effects

Potential

Failure Mode

Process Step/

Input

908070

190

170

150

130

110

90

70

50

X =tem pera tu

Y =

de

ma

nd

S = 10.4163 R-S q = 93.6 % R-S q(adj) = 92.9 %

Y = dem and = -408.072 + 6.60801 X =tem peratu

Regress ion Plot

Analyse

1.Identify the key process input variables x

2.Use Lean Six Sigma tools to perform root cause analysis to identify critical xsa. Cause and Effect matrix

b. Failure Modes and Effect Analysis (FMEA)

c. Analysis of Variance ANOVA d. Main Effects charts

e. Regression analysis

Cause and Effect Matrix

TimeShiftDay

43212121

0.038

0.033

0.028

0.023

0.018

Impurity

Main Effects Plot - Data Means for Impurity

Analysis of Variance for production

Source DF SS MS F P

plan 4 105530 26382 24.14 0.000

Error 35 38244 1093

Total 39 143774

Individual 95% CIs For Mean

Based on Pooled StDev

Level N Mean StDev ---+---------+---------+---------+---

A 8 1104.4 46.2 (----*----)

B 8 1162.6 33.4 (----*---)

C 8 1059.0 33.7 (----*----)

D 8 1073.9 25.7 (----*----)

E 8 1192.8 20.2 (----*---)

---+---------+---------+---------+---

Pooled StDev = 33.1 1050 1100 1150 1200

ANOVA

FMEA

Main Effects Charts Regression Analysis

Trivial many

Critical few

Y = f (x1, x2, x3, xn)

Improve Phase

600 620 640 660 680 700

LSL USL

Process Capability Analysis for New Process

USL

Target

LSL

Mean

Sample N

StDev (Within)

StDev (Overall)

Cp

CPU

CPL

Cpk

Cpm

Pp

PPU

PPL

Ppk

PPM < LSL

PPM > USL

PPM Total

PPM < LSL

PPM > USL

PPM Total

PPM < LSL

PPM > USL

PPM Total

700.00

*

600.00

646.85

20

6.14290

6.84277

2.71

2.88

2.54

2.54

*

2.44

2.59

2.28

2.28

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

Process Data

Potential (Within) Capability

Overall Capability Observed Performance Exp. "Within" Performance Exp. "Overall" Performance

Within

Overall

Improve

Critical xs confirmed1.Develop potential

solutions

2.Select solution

3.Optimize solution

4.Pilot solution

5.Develop new process capability

Solutions:

Setup Reduction

Maintenance Excellence

Replenishment Pull System

Design of Experiment

1

20,000 pcs/mo

Module=100

SUPPLIERSUPPLIER

DistributionDistributionAssemblyAssemblyAssemblyAssemblyMachineMachine MachineMachine

Warehouse

Receiving

Warehouse

Receiving

2/D

ay

Dai

ly

CustomerCustomer

C/T = 30 Sec

C/O = 30 Min

Uptime 95%

Batch Size 100

C/T = 45 Sec

C/O = 10 Min

Uptime 95%

Batch Size 100

C/T = 60 Sec

C/O = 5 Min

Uptime 95%

Module Size100

C/T = 50 Sec

C/O = 10 Min

Uptime 95%

Module Size 100

C/T = 30 Sec

C/O = 30 Min

Uptime 95%

Batch Size 100

C/T = 30 Sec

C/O = 30 Min

Uptime 95%

Batch Size 100

C/T = 45 Sec

C/O = 10 Min

Uptime 95%

Batch Size 100

C/T = 45 Sec

C/O = 10 Min

Uptime 95%

Batch Size 100

C/T = 60 Sec

C/O = 5 Min

Uptime 95%

Module Size100

C/T = 60 Sec

C/O = 5 Min

Uptime 95%

Module Size100

C/T = 50 Sec

C/O = 10 Min

Uptime 95%

Module Size 100

C/T = 50 Sec

C/O = 10 Min

Uptime 95%

Module Size 100

200 pcs 500 pcsMax 100

pcsMax 200

pcs



Processing time

= 145 seconds

3.0 hoursProduction lead time

= 16.9 hours

Kanban

Kanban

Daily Order

Via paper

KanbanKanban

FIFO FIFO

Kanban

Kanban

1 1 1 11 Set-up ReductionTPM

ProductionControl

MACHINING & ASSEMBLY Production

Control



Order, Weekly (5-day), Fax


Order, Daily, Fax

CUSTOMERSERVICE

CUSTOMERSERVICE

MRP


MRP

DOE

23




1

20,000 pcs/mo

Module=100

SUPPLIERSUPPLIER

DistributionDistributionAssemblyAssemblyAssemblyAssemblyMachineMachine MachineMachine

Warehouse

Receiving

Warehouse

Receiving

2/D

ay

Dai

ly

CustomerCustomer

C/T = 30 Sec

C/O = 30 Min

Uptime 95%

Batch Size 100

C/T = 45 Sec

C/O = 10 Min

Uptime 95%

Batch Size 100

C/T = 60 Sec

C/O = 5 Min

Uptime 95%

Module Size100

C/T = 50 Sec

C/O = 10 Min

Uptime 95%

Module Size 100

C/T = 30 Sec

C/O = 30 Min

Uptime 95%

Batch Size 100

C/T = 30 Sec

C/O = 30 Min

Uptime 95%

Batch Size 100

C/T = 45 Sec

C/O = 10 Min

Uptime 95%

Batch Size 100

C/T = 45 Sec

C/O = 10 Min

Uptime 95%

Batch Size 100

C/T = 60 Sec

C/O = 5 Min

Uptime 95%

Module Size100

C/T = 60 Sec

C/O = 5 Min

Uptime 95%

Module Size100

C/T = 50 Sec

C/O = 10 Min

Uptime 95%

Module Size 100

C/T = 50 Sec

C/O = 10 Min

Uptime 95%

Module Size 100

200 pcs 500 pcsMax 100

pcsMax 200

pcs



Processing time

= 145 seconds

3.0 hoursProduction lead time

= 16.9 hours

Kanban

Kanban

Daily Order

Via paper

Kanban

FIFO FIFO

Kanban

Kanban

1) Set-up reduction

2) Pull Systems

3) TPM

1 1 1 11

ProductionControl

MACHINING & ASSEMBLY Production

Control



Order, Weekly (5-day), Fax


Order, Daily, Fax

CUSTOMERSERVICE

CUSTOMERSERVICE

MRP


MRP

Control Phase

Mistake-Proofing

100% Defect PreventionVisual Tools for

Fast feedback

Control

Eliminate defects

1.Write a Control Plan

2.Calculate final financial/process metrics

3.Document project for future implementation

4.Transition project to process owners

First/Last Piece

Mistake Proofing

Control Plan

Yearly Layout

P/M Checklist

Quality Checklist

Control Plan

8765432Subgroup 1

6.5

6.0

5.5

Sa

mp

le M

ea

n

Mean=5.965

UCL=6.435

LCL=5.494

3

2

1

0

Sa

mp

le R

an

ge

R=1.770

UCL=3.039

LCL=0.5012

Xbar/R Chart for bore

24






LSS e-Learning




Disciplined Approach

Tools & Toolsets

Develop Project Charter

Create High Level Process Map (SIPOC)

Data Collection and Integrity

Compare Process

Performance

Narrow Potential

Causes (Xs)

Validate Critical Causes (Xs)

CaptureQuick-Win

Opportunities

Develop Potential Solutions

Optimise Best

Solution

Plan & Execute

Pilot

Plan & Execute Full Scale

Implementation

Monitor, Control & Transition

Process

Validate Benefits &

Close Project

Collect & Translate Voice

of the Customer


Define

Milestone Review

Measure

Milestone Review

Analyse

Milestone Review

Improve

Milestone Review

Control

Milestone Review

3

2

1

6

5

4

9

8

7

12

11

10

15

14

13

Lean Six Sigma DMAIC Milestone Map15 Focus Steps

25




Use Kaizen techniques with Lean tools for specific solutions5S, Rapid Change-over, NVA elimination, Work control, balance & flow, pull systems

Lean Six Sigma

Lean Thinking Concept Map

Fundamentals

Kaizen Method + Tribal Knowledge + Current State Mapping + Brainstorming techniques

Understanding Speed

Constraint Identification

Time Trap Strategy

Process Cycle Efficiency

TAKT-Time Analysis

NVA elimination

5S Safe, Orderly & Clean


Work Stability Systems

Process Flow Techniques

Process Balancing

Visual Workplace

TPM

Poke Yoke

Batch Size Control

Rapid Changeover

Lean Layout Design

Visual Management

Pull Systems

Replenishment

Strategic Stocking

Supplier

1 & 2 Bin

Kanban

Part Stratification

Pull Systems

Supplier

1 & 2 Bin

Kanban

Queuing Theory

Vendor Certification

Integration Skills

Tools

P r o c e s sQ u e u e B u f f e r

What Are the Basic Lean Six Sigma Tools?

Primarily involve brainstorming, idea generation, and decision making

Intuitive in nature; easily taught, understood, and applied

Ideal for use with teams and user groups

Essential skills are developed by applying these fundamental toolsets within a focused project environment

26




Basic Lean Six Sigma Tool Examples

Process Mapping

Constraint Management

Process Flow

Line Balancing

Value Analysis

Brainstorming

Check Sheets

Run Charts

Histograms

Scatter Diagrams

Control Charts

Pareto Analysis

C&E/Fishbone Diagrams

C&E Matrices

Mistake-Proofing

Affinity

Interrelationship Digraphs

Force Field Analysis

Nominal Group Technique

Multi-voting

Materials Management

Shop Floor Controls

Kaizen

Vendor Certification/ Scorecards/Lead-Time Reduction

Supplier Communication

Order Management/Case Teams

What Are the Advanced Lean Six Sigma Tools?

Statistical tools requiring more in-depth knowledge of statistical principles, graphical and analytical techniques

Lean analytical tools may involve multi-company, multi-functional, or senior management participation to formulate enterprise strategies and implementation pathways

27




Advanced Lean Six Sigma Tool Examples

Gauge R&R

Capability Studies: Cp & Cpk

Multivariate Charts

Main Effects Plots

Interaction Plots

Regression Analysis

Analysis of Variance (ANOVA)

Non-parametric and proportions

Quality Function Deployment (QFD)

Failure Modes and Effects Analysis (FMEA)

Design of Experiments (DOE)

Hypothesis Testing

Response Surface Methodology

Make vs. Buy

Replenishment Systems

Plant consolidation

Strategic sourcing

Are you Fixing or Designing a Process? Design for Innovation

The Lean Six Sigma new Design discipline

Measure

Explore

Implement

Measure

Analyze

Improve

Control

No Yes

No YesDevelop Is

IncrementalImprovement

Enough?

Define

Does

Process

Exist?

DMEDISteps to

design a new product or

process

DMAICSteps to improve an existing process

The Lean Six Sigma Improvement discipline

28




Identify When to Use theLean Six Sigma Process?

You have a challenging goal to reach or issue to solve

You have a group of people with the necessary background to be able to contribute intelligently to identify and/or solve the issue

You want a more creative and/or robust solution than you can develop on your own

You want to encourage the empowered flow of ideas and build team unity

You want group ownership of a course of action

When NOT to Use theLean Six Sigma Process?

You only want to disseminate information

You just want a progress check.

You dont have a specific challenge or clear issue to solve

You already have a solution and course of action, and are not interested in group input or determining if your solution addresses the root cause

29




Key Learning

Market forces are driving improvement

The power of the unified Lean Six Sigma approach

The importance of each of the five Phases of D.M.A.I.C.

The Lean Six Sigma problem solving sequence

Basic and Advanced Lean Six Sigma Tools & Toolsets

D.M.A.I.C Roadmap

Lean Thinking Concept Map

Design for Innovation (D.M.E.D.I.)



LSS e-Learning



LSS e-Learning

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"Manual") are the sole and exclusive property of Kirtland Leadership Pty Ltd/ Lean Six Sigma Australasia (LSSA).

The contents hereof contain proprietary trade secrets that remain the private and confidential property of LSSA. Unauthorized use, disclosure, or reproduction of any kind of any material contained in this

Manual is expressly prohibited. The contents hereof are to be returned immediately upon termination of any relationship or agreement giving user authorisation to possess or use such information or

materials. Any unauthorised or illegal use shall subject the user to all remedies, both legal and equitable, available to LSSA. This Manual may be altered, amended or supplemented by LSSA from

time to time. In the event of any inconsistency or conflict between a provision in this Manual and any federal, provincial, state or local statute, regulation, order or other law, such law will supersede the

conflicting or inconsistent provision(s) of this Manual in all properties subject to that law.

2012 by Kirtland Leadership Pty Ltd

All Rights Reserved.

Lean Six Sigma Australasia is a registered name of

Kirtland Leadership Pty Ltd

1 7001A 1-02D Identify Lean Six Sigma Opportunities UoC7001A_91558NSW CLR

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