Lean Six Sigma Combining Six Sigma Quality With Lean Production Speed
Lean Six Sigma
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Transcript of 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
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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