IIBA Lean Six Sigma
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IIBA Lean Six Sigma
Transcript of IIBA Lean Six Sigma
IIBA Lean Six Sigma
Introduction – Janet Lau
Janet Lau is a certified Lean Six Sigma Master Black Belt with thirteen
years of business improvement experience. She is also a recent
Executive MBA graduate at the University of Alberta. Currently, Janet is
the Principal Consultant and Owner of Breakthrough Solutions
Consulting. She is specialized in delivering transformational business
results for organizational effectiveness, productivity, and profitability.
Janet successfully delivered over hundred projects ranging in
complexity from simple Lean projects to complex technical projects
across the full spectrum of the business - operations, supply chain
management, HR, Finance, Health & Safety, IT, and cross-department
level initiatives. She is passionate about developing the next generation
of Lean Six Sigma practitioners and offers a variety of Lean Six Sigma
training courses. Her key strategy for success is being people-oriented,
data-driven, and taking a stand for making a difference.
Presentation Topics:
• What is ‘Lean’...and what is ‘Six Sigma’?
• What are the similarities and differences?
• How does this help me in my work?
1. Introduction to Lean and Six Sigma
• Taking a data-driven approach to define the problem, identify defects, and validate the effectiveness of solutions.
2. Data! Data! Data!
• How does experiential project engagement and learning increase project ownership?
3. Hands-on learning and real-world problem
solving create engagement.
Part 1: What is Lean Six Sigma?
In 2001, by a book titled Leaning into Six Sigma: The Path to Integration of Lean Enterprise and Six Sigma by Barbara Wheat, Chuck Mills, Mike Carnell.[6] The book was developed as a guide for managers of manufacturing plants on how to combine lean manufacturing and Six Sigma in order
to dramatically improve quality and cycle time in the plant.
Both were derived from the manufacturing industry with same goal:
improve customer satisfaction,
improvement on product quality
improving the speed of production
reduction in cost improve employee
engagement.
In the 1980s Lean and Six Sigma were two separate methodologies.
Lean – known from Toyota Six Sigma – known from Motorola
What is Lean?
Goal
o Remove of Waste
o Maximize Process Flow
o Eliminate non-value added
process steps
o Create standization
o Create balance load
process
o Focus on Customer
Requirements
Speed
Practice:
Are you able to identify
waste in your
workplace?.. Or day to
day life?
What is Waste? (MUDA)
What is Six Sigma?
Which pilot do you choose?
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What is Six Sigma?
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Problem with Spread
Target
Actual
Target Actual
Problem with Centering
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On Target
Minimal Variation
Off - Target Large Variation
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Unfocused Efforts
Six Sigma used to
Center Process
Six Sigma used to
focus efforts
Six Sigma used to
reduce spread
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What is Six Sigma? Why do I need 6 Sigma?
Sigma Performance Levels -- One To Six Sigma
Sigma LevelDefects Per Million
1 690,000
2 308,537
3 66,807
4 6,210
5 233
6 3.4
What Does This Look Like In The Real World?
Real-World Performance Levels
Situation/ExampleIn 1 Sigma World
In 3 Sigma World
In 6 Sigma World
Pieces of your mail lost per year [1,600 per year]
1,106 107 <1
Number of defective iphones[35,000,000] (2019)
24M 2.4M 119
Number of telephone disconnections [7,000 talk minutes]
4,839 467 0.02
Number of airplane incidents in Toronto Airport with 39000 flights in 2019
26,910 2605 0.9
What is Six Sigma?
Goal
o Reduce process variation
o Reduce defects
o Improve quality
o Data driven appraoch
o Predictable process
outcome & control
o Focus on customer
requirements
Accuracy
Reduce
Variation
Focus
Effort
Drill down
to root
cause
Shift the
performanceSix Sigma
When to use Lean ? When to use Six Sigma
Use Lean to reduce
waste & maximize
flow to reach to
process capacity
Process
capability
Process stabilization &
performance consistency
Use Six Sigma to get to
next level
Use Lean & Six
Sigma to stabilize
the new process
How does it help me?
Data Driven
Approach
Systematic
Problem
Solving
Team Based
Approach
Experiential
Learning
Develop the Critical Thinking for Being in Continuous Improvement
Improves Business Analysis Reduces Project Cycle Time Delivers Better Bottom Line
Part 2. Data! Data! Data!
Typical Mindset in Problem Solving
Problem Occurs
we assume what cause the problem
We assert in knowing the solutions
We insist the current way of doing thing is the
correct way
Our
Past
Experi
ence
Solutions generated
are another version of
the same thing. It
makes no difference
We assert in knowing the root cause
Einstein Quote
Lean Six Sigma Approach to Problem Solving
Practical
Problem
Practical
Solution
Data/StatisticalProblem
Data/StatisticalSolution
TraditionalApproach
Lean & Six SigmaApproach
Data gives us
access to
discover what
the facts to
the problem
are…
Lean Six Sigma = take a Business Problem…
* translate it into a Statistical Problem…
* from which a Statistical Solution is derived …
* and translated back into a Business Solution
Y = f (x)
The Problem Solving Equation
Output of a process
(Business Metric)
Factors of the process
that affect the output
Y = f (x1+x2+x3….)
=
There are many factors within the
process. Lean Six Sigma interested in
factors that are most significant
influences on the output
We use a variety of Lean Six Sigma
tools to help find the vital few
variables that have the biggest
impact.
(X7)
(X6)
(X5)(X3)
(X2)
(X4)(X10)
(X9)
(X1) (X8)
(X11)
The Organizational Process Level
5-Year Business Plan
Mission and
Vision
Key Results Area
Critical to Customer
Requirements
Process
Metrics
Process
Metrics
Process
Metrics
Process
Metrics
Process
MetricsProcess
Metrics
Process
Metrics
Load and
Haul
Explore
& Acquire
Sorting and
ValuationProcessing
Long Term
Strategic
Planning
Marketing &
Portfolio
Management
Drill and
Blast
Support processes: Maintenance, Supply, Finance, Human Resources, IT, Communications, Water, Energy, Safety, Environment
Level 0Core BusinessProcesses
Success Metrics
(KPIs)
Improvement Program
Level 2Processes
Level 1Processes Primary Crush Cone Crusher Scrubber HPGR HMSRaw Ore Convey to Sort
Detailed Process Map –
Highest Project Level – often Projects
are at an even lower level
Drilling Down to Define the Problem Slicing the data into logical categories can be used to narrow the focus to the right size
This is how you eat an elephant – “One bit at a time”
Prevention
Detection
Internal
External
0 53,000 76,000106,000
0.022.632.345.1
100.0100.0 77.4 45.1
200,000
100,000
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0
Category
Amount ($)
Percent
Cum %
Perc
en
t
Dolla
rs
Cost by Category
Others
Timlin
ess
Accuracy
226 3004672
4.3 5.889.9
100.0 95.7 89.9
5000
4000
3000
2000
1000
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60
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20
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Defect
Count
Percent
Cum %
Perc
en
t
Cou
nt
Pareto Chart for External COPQ by Type
Others
Acct Number
Customer Info
Penalties
Amount
22823845855877
0.624.124.725.025.6
100.0 99.4 75.3 50.6 25.6
3500
3000
2500
2000
1500
1000
500
0
100
80
60
40
20
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Defect
Count
Percent
Cum %
Perc
en
t
Cou
nt
Pareto Chart for External Accuracy Defects
Business
Excellence
2009
Use Data to Drill Down to Projects!
Page 20
Increase
Recovery (%)
Increase Head
Grades (g/t)
Use
Better
Reagents
Improve
Scavenger
Recovery
Improve
Rougher
Recovery
Improve
Resource
Definition
Improve
Grade
Control
Build Heavy
Medium
Plant
One business case linked to a key business imperative can spawn several narrowly
scoped projects
Install
Bigger Cells
Level 0 =
Level 1 =
Potential Projects =
KPI =
Process Plant Production
Recovery – Maximise to meet Customer demand - %
KPI Gap = Aspiration (Target) – Baseline
Process Metrics
Improvement Projects
= Primary Metric
Busi
ness
Case
(s)
(BC)
Pro
ble
m /
Opport
unit
y
Sta
tem
ents
Increase
Flotation
Recovery (%)
KPA =
Over the
CounterAccuracy of
Billing
One business case linked to a key business imperative can spawn several narrowly scoped
projects
Account Receivable: Drill Down to Projects!
Account
Receivable per
month
# Invoice Bill to
customer# Open Billing
Preventive
Maintenance
Service
Reactive
Maintenance
Service
Billing
Cycle time
Potential Projects =
EBIT
Revenue per month Busi
ness
Case
(s)
(BC)
Pro
ble
m /
Opport
unit
y
Sta
tem
ents
Improvement Projects
= Primary Metric
KPI Gap = Aspiration (Target) – Baseline
Process Metrics
Level 0 =
Level 1 =
KPI =
KPA =
Tech
behaviors
Missing Info
for billingFlat Rate
Billing
Top vendor
billing
requirement
Part order
ship
freight
Part order
with WO
Problem Solving Methods
Define Measure Analyze Improve Control
Plan Do Check Act
Six
Sigma
Lean
Describe Identify Evaluate Solution Control
Identify problem
Gather Data
Analyze Data
Identify & define
Solutions
Plan Implem-entation
Test
Solutions
Improve
Solutions
BA
IT
Lean Six Sigma Tool Map
Reference: https://images.app.goo.gl/DJyjDUX7DF1H4KqD8
At every step of the
project, DATA is used to
map the problem,
process, root cause, and
find solutions.
Using a data driven
approach enables the
project team to use
FACTS to more accurately
identify problems and
opportunities
Part 3. The Team & Experiential Learning
Data Driven
Approach
Systematic
Problem
Solving
Team Based
Approach
Experiential
Learning
Develop the Critical Thinking for Being in Continuous Improvement
Improves Business Analysis Reduces Project Cycle Time Delivers Better Bottom Line
Project with Integration of Six Sigma, Lean and Kaizen
Leadership, creativity, innovation
Teaming and employee involvement
• Quick Strike
• 1-6 days
• Process mapping
• Cause and effect
• Simple tactical focus
• Obvious quick fixes
• Containment
• Plug holes in dyke
Kaizen
• Visual controls
• Cells
• Pull systems
• Kanban
• Setup production
• TPM
• Waste, NVA
• Speed, cycle time
• Standardisation
• Inventory performance
• Logistics cost reduction
• Variance reduction
Lean
• DMAIC process
• Statistical tools
• VSM
• FMEA
• Cp & Cpk
• MSA
• ANOVA, Hypothesis,
DOE, Optimisations
• Complex problems
• Variance reduction
• Process capability
• Defect prevention
• Stability, predictability
• Design excellence
Six Sigma
Knowledge of
tools
Focus on
improvement
Closed loop
performance
Experiential Learning in Project Stage
Control
Measure
Measure/Analyze
Improvement
Define
6 months after
improvement
12 months after
improvement3 months after
improvement
As a project facilitator have to create
environment enable natural learning curve
(peaks & valleys) for each team member and
as a team. Such experiential learning create
natural enrollment and empowerment in
process improvement effort.
Masterful of
the new way
In Closing…
