Lean Six Sigma

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Lean Six Sigma Lean Six Sigma A Methodology for A Methodology for Cultural Change and Cultural Change and Continuous Process Continuous Process Improvement (CPI) Improvement (CPI)

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Lean Six Sigma. A Methodology for Cultural Change and Continuous Process Improvement (CPI). Lean Six Sigma: A Vision. Empowered People Operating in a Culture and Climate of Creativity & Innovation. Constantly Eliminating Waste and Variation. Reduced Costs & Increased Productivity. - PowerPoint PPT Presentation

Transcript of Lean Six Sigma

Page 1: Lean Six Sigma

Lean Six SigmaLean Six Sigma

A Methodology for Cultural A Methodology for Cultural Change and Continuous Process Change and Continuous Process

Improvement (CPI) Improvement (CPI)

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Lean Six Sigma: A VisionEmpowered People Operating in a Culture

and Climate of Creativity & Innovation

Constantly Eliminating Waste and Variation

HQAMC
Mark For your consideration as replacement for the previous slide. Rationale; Army is not necessarily about growth but we are reducing cost from a fiscal as well as temporal point of view.
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Lean Six Sigma: What is it?

Lean and Six Sigma are both process improvement Lean and Six Sigma are both process improvement methodologiesmethodologies

Lean is about speed and efficiencyLean is about speed and efficiency Six Sigma is about precision and accuracy – Six Sigma is about precision and accuracy –

leading to data-driven decisionsleading to data-driven decisions Both rooted in the 1980s (and earlier)Both rooted in the 1980s (and earlier)

Lean arose as a method to optimize auto manufacturingLean arose as a method to optimize auto manufacturing Six Sigma evolved as a quality initiative to reduce Six Sigma evolved as a quality initiative to reduce

variance in the semiconductor industryvariance in the semiconductor industry

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Why Lean and Six Sigma

Six Sigma will eliminate defects but it will not address the Six Sigma will eliminate defects but it will not address the question of how to optimize process flowquestion of how to optimize process flow

Lean principles exclude the advanced statistical tools Lean principles exclude the advanced statistical tools often required to achieve the process capabilities needed often required to achieve the process capabilities needed to be truly 'lean‘to be truly 'lean‘

Each approach can result in dramatic improvement, Each approach can result in dramatic improvement, while utilizing both methods simultaneously holds the while utilizing both methods simultaneously holds the promise of being able to address all types of process promise of being able to address all types of process problems with the most appropriate toolkit. problems with the most appropriate toolkit.

For example, inventory reduction not only requires reducing batch sizes For example, inventory reduction not only requires reducing batch sizes and linking operations by using Lean, but also minimizing process and linking operations by using Lean, but also minimizing process variation by utilizing Six Sigma tools.variation by utilizing Six Sigma tools.

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Lean Six Sigma Goals and Benefits

Achieve total customer satisfaction and improved Achieve total customer satisfaction and improved operational effectiveness and efficiencyoperational effectiveness and efficiency

Remove wasteful/non-value added activitiesRemove wasteful/non-value added activities Decrease defects and cycle time, and increase first pass Decrease defects and cycle time, and increase first pass

yieldsyields

Improve communication and teamwork through a Improve communication and teamwork through a common set of tools and techniques common set of tools and techniques

(a disciplined, repeatable methodology)(a disciplined, repeatable methodology) Develop leaders in breakthrough technologies to Develop leaders in breakthrough technologies to

meet stretch goals of producing better products and meet stretch goals of producing better products and services delivered faster and at lower costservices delivered faster and at lower cost

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Lean Six Sigma Lean Six Sigma Requires Behavioral ChangeRequires Behavioral Change

Lean Six Sigma Challenges Us to:Lean Six Sigma Challenges Us to: Think DifferentlyThink Differently Work DifferentlyWork Differently Ask Questions and Challenge the Ask Questions and Challenge the

Status QuoStatus Quo Make Decisions With Facts and DataMake Decisions With Facts and Data Use New Principles, Tools and Use New Principles, Tools and

MethodologiesMethodologies

“Early-on, when culture and change compete, culture wins.”- Tom Quan, GlaxoSmithKline

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To Successfully Deploy Lean Six SigmaTo Successfully Deploy Lean Six Sigma

Start with the customer … listen, listen, listenStart with the customer … listen, listen, listen

Leadership commitment and alignment … go beyond the words Leadership commitment and alignment … go beyond the words … change behavior… change behavior

Create momentum for changeCreate momentum for change

Develop need, vision and planDevelop need, vision and plan

Communicate, communicate, communicateCommunicate, communicate, communicate

Repeatedly execute and assessRepeatedly execute and assess

Develop necessary skill sets to obtain the desired future Develop necessary skill sets to obtain the desired future state at all levels of the organizationstate at all levels of the organization

Involve Everyone: Leadership, Champion, Master Black Belt, Involve Everyone: Leadership, Champion, Master Black Belt, Black Belt, Green Belt, EmployeesBlack Belt, Green Belt, Employees

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Basic Questions

What are the customer What are the customer needs?needs?

Do our products or Do our products or servicesservices

answer the Voice of the answer the Voice of the CustomerCustomer

at a price he is willing to at a price he is willing to pay?pay?

How do we know?How do we know?

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Lean Six Sigma Principles

• Specify value in the eyes of the customer

• Identify the value stream and eliminate waste / variation

• Make value flow smoothly at the pull of the customer

• Involve, align and empower employees

• Continuously improve knowledge in pursuit of perfection

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Lean Six Sigma: A Powerful Methodology (DMAIC)

MeasureDefine ImproveAnalyze Control

what is important to the customer:

Project Selection

Team Formation

Establish Goal

how well we are doing:

Collect Data

Construct Process Flow

Validate Measurement System

the process:

Analyze Data

Identify Root Causes

the process gains:

Ensure Solution is Sustained

the process performance measures:

Prioritize root causes

Innovate pilot solutions

Validate the improvement

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The Tools and Techniques

Define Measure Analyze Improve Control

Benchmarking

FMEA

IPO Diagram

Kano’s Model

Knowledge Based Mgt

Project Charter

SIPOC Model

Quality Function Deployment

Voice of Customer

Task Appraisal / Task Summary

Value Stream Mapping

Confidence Intervals

Measurement System Analysis

Nominal Group Technique

Pairwise Ranking

Physical Process Flow

Process Capability Analysis

Process Flow Diagram

Process Observation

Time Value Map

Value Stream Mapping

Waste Analysis

Affinity Diagram

Brainstorming

Cause & Effect Diagram

e-test

F-test

Fault Tree Analysis

FMEA

Histogram

Historical Data Analysis

Pareto Chart

Reality Tree

Regression Analysis

Scatter Diagram

t-test

Thematic Content Analysis

Tukey End Count Test

5 Whys

DFSS

DOE

Kanban

Mistake Proofing

PF/CE/CNX/SOP

Standard Work

Takt Time

Theory of Constraints

Total Productive Maintenance

Visual Management

Work Cell Design

5S Workplace Organization

Control Charts

Control Plan

Reaction Plan

Run Charts

Standard Operating Procedures

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Definition of a Value Stream

The VALUE STREAM is the entire set of processes or activities performed to transform the products and services into what is required by the customer.

A Primary Focus is TIME,

Product and / or Service Flow

Information Flow: Quickly In All Directions

The VALUE STREAM

Sell Sell CustomersCustomersSuppliersSuppliers Make Make Procure ProcureDesign Design

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Understanding the Value Stream

We are often part of a value creating stream Ultimately, the intent of the stream is to answer the end-user’s

needs Knowing who our customers are is the first step in

understanding the stream; our primary customer may not be the end-user

Knowing how the stream and our piece works or doesn’t work in meeting customer needs is what Lean Six Sigma is about

HappyCustomer

TheirSupplier

Our Piece

TheirService

Our Supplier

OurCustomer

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• Provides a Provides a world classworld class business strategy business strategy

• Encourages a Encourages a common visioncommon vision and and common languagecommon language shared by allshared by all

• Promotes Promotes teamworkteamwork and REWARDS success and REWARDS success

• Combines Combines aggressive goalsaggressive goals with a with a methodmethod and a set of and a set of toolstools

• Requires the Requires the applicationapplication of of toolstools throughout throughout entire lifecycleentire lifecycle of a product or serviceof a product or service

• Produces knowledge for Produces knowledge for improved cycle timeimproved cycle time, , reduced reduced defectsdefects, and , and lower costlower cost

Better products and servicesdelivered faster and at lower cost

=Improved Customer Value

Summarizing the Power of Lean Six Sigma