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Page 1: Lean Six Sigma Lean Six Sigma

Lean Six SigmaLean Six Sigma

By

R Sawhney Ph DR. Sawhney Ph.D.Department of Industrial and Information Engineering

University of Tennessee, Knoxville406 East Stadium Hall406 East Stadium HallKnoxville, TN 37996

865 974 [email protected]

Page 2: Lean Six Sigma Lean Six Sigma

CPI-Center for Productivity &Innovations

Dr. Dr. RupyRupy SawhneySawhney Dr. Xueping LiDr. Xueping Li

Chris Chris WrightWright

Yanzhen Yanzhen LiLi

Sashi K. Sashi K. NaiduNaidu

RobertRobertKeyserKeyser

Sirisha Nukala

Joesph Joesph StainbackStainback

Gagan Gagan RajpalRajpal

Paul Paul CastoCasto

Barbara Barbara OwensOwens

Laigang Laigang SongSong

Yuerong Yuerong ChenChen

Wang Wang JiaoJiao

Dengfeng Dengfeng YangYang

Joseph Joseph AmaleshAmalesh

Arun Arun BalasundaramBalasundaram

Naveed Naveed AhmedAhmed

Ashutosh Ashutosh HengleHengle

Zeid Zeid ElEl--AkkadAkkad

Karthik Karthik SubburamanSubburaman

Page 3: Lean Six Sigma Lean Six Sigma

Comparison of Lean dand Six Sigma

What is Lean? What is Six Sigma?

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THEN WHAT IS LEAN SIXTHEN WHAT IS LEAN SIX SIGMA?

Page 5: Lean Six Sigma Lean Six Sigma

A LEAN SIX SIGMA PROBLEMA LEAN SIX SIGMA PROBLEM

Page 6: Lean Six Sigma Lean Six Sigma

Effect of Variation on Flow

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Simulation #1Push SystemPush System

Five workstations in a cell.The first workstation will never be starved.Every station on a line has the same level of variation. The average process time is the same for every machine centerThe average process time is the same for every machine center (10 time units). However, the individual process times are taken randomly from a normal distribution. Each machine on Line One has a coefficient of variation of 5%Each machine on Line One has a coefficient of variation of 5% and each machine on Line Two has a coefficient of variation of 50%.All other parameters besides variation are identical for both linesAll other parameters besides variation are identical for both lines. Parts are pushed through the system meaning that when a machine is finished with a part it will immediately travel to the queue for thequeue for the succeeding machine.

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Effect of Variability -Push System

Lead Times for Push System

Process StandardProcess Standard

Variability 1 2 3 4 5 6 7 8 9 10 Average Deviation

5% 88.9 88.1 94.3 104.7 95.1 101.9 95.1 87.8 88.7 97.0 94.1 5.91

10% 165.6 155.3 99.4 120.3 122.6 138.9 114.6 102.8 140.4 208.4 136.8 33.05

20% 186.7 168.3 149.4 184.6 236.2 235.0 204.4 226.5 174.5 237.4 200.3 32.1120% 186.7 168.3 149.4 184.6 236.2 235.0 204.4 226.5 174.5 237.4 200.3 32.11

30% 242.4 254.1 394.3 257.9 308.6 358.6 213.6 373.8 299.5 235.6 293.8 63.48

40% 359.8 521.8 382.7 360.4 212.3 419.2 335.6 671.8 452.0 422.3 413.8 121.67

50% 464.9 431.2 366.2 381.9 568.8 525.4 490.5 242.8 277.2 486.9 423.6 105.86

AVERAGE LEAD TIMES PER COEFFICIENT OF VARIATION

30%

40%

50%

of v

aria

tion

AVERAGE LEAD TIMES PER COEFFICIENT OF VARIATION

0 100 200 300 400 500

5%

10%

20%

Co-

effic

ient

o

Series1

Flow Times (seconds)

*Note: These values represent the average results of simulations replicated ten times for a givenlevel of variation

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Effect of Variability -Push System

Average Throughput for Push System

Process Variability 1 2 3 4 5 6 7 8 9 10 Average

Standard Dev

5% 358.8 359 359.1 358.6 358.4 359 358.9 358.9 358.9 358.4 358.8 0.25

10% 357.9 357.9 357.8 357.4 357.6 358 357.1 357.9 357.5 355.9 357.5 0.63

20% 356.8 354.9 354.7 353.7 353.2 355.8 354.7 354.5 356.1 354.7 354.9 1.0820% 356.8 354.9 354.7 353.7 353.2 355.8 354.7 354.5 356.1 354.7 354.9 1.08

30% 352.6 354.7 352.6 352 353.7 354.1 353.2 351.5 353.3 351.6 352.9 1.07

40% 350.8 351 348.7 347.6 345.2 350.8 352.1 349.2 347.5 349.9 349.3 2.08

50% 347.4 345.3 349 354.2 344.4 348 348.3 346.8 348 345 346.7 1.65

30.0%

40.0%

50.0%

of V

aria

tion

AVERAGE THROUGHPUT PER COEFFICIENT OF VARIATION

340 345 350 355 360

Average Throughput(pieces/hours)

5.0%

10.0%

20.0%

Coef

ficie

nt o

f

Series1

*Note: These values represent the average results of simulations replicated ten times for a givenlevel of variation

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Effect of Variability -Push System

Average Overall WIP

Process StandardProcess Standard

Variability 1 2 3 4 5 6 7 8 9 10 Average Deviation

5% 8.9 8.8 9.4 10.5 9.4 10.2 9.5 8.8 8.9 9.7 9.4 0.59

10% 16.5 15.5 9.9 12.0 12.2 13.9 11.4 10.2 14.0 20.8 13.6 3.31

20% 18 5 16 7 14 8 18 3 23 5 23 5 20 5 22 6 17 4 23 5 19 9 3 2120% 18.5 16.7 14.8 18.3 23.5 23.5 20.5 22.6 17.4 23.5 19.9 3.21

30% 23.8 25.1 39.5 25.5 30.8 35.7 21.3 37.2 29.9 23.5 29.2 6.41

40% 35.6 51.5 37.8 35.6 20.5 42.4 33.1 67.7 44.8 41.9 41.1 12.44

50% 45.4 42.1 35.8 37.2 56.1 52.5 48.2 23.6 26.8 47.7 41.5 10.63

30%

40%

50%

varia

tion

AVERAGE OVERALL WIP PER COEFFICIENT OF VARIATION

0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0

5%

10%

20%

30%

Coe

ffici

ent o

f v

Series1

Flow Times (seconds)

*Note: These values represent the average results of simulations replicated ten times for a givenlevel of variation

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Simulation #2Pull System Kanban Pull

Five workstations in a cell

Pull System-Kanban Pull

Five workstations in a cell.

The first workstation will never be starved.

Every station on a line has the same level of variation.

The average process time is the same for every machine center (10The average process time is the same for every machine center (10 time units). However, the individual process times are taken randomly from a normal distribution.

Each machine on Line One has a coefficient of variation of 5% and each machine on Line Two has a coefficient of variation of 50%.

All th t b id i ti id ti l f b th liAll other parameters besides variation are identical for both lines.

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Pull System- Kanban Pull System

A WIP level of one unit is allowed between each station. WS1 WS2 WS3

The logic used to model this system is that a machine will work only when there is zero or one WIP between itself and the succeeding station If the queue between stations is equal to 2 the machine will notstation. If the queue between stations is equal to 2 the machine will not work.

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Effect of Variability -Kanban Pull SystemSystem

Lead Times For Kanban Pull System

Process Standard

Variability 1 2 3 4 5 6 7 8 9 10 Average Deviation

5% 71.2 68.9 70.8 66.8 71.8 67.9 68.3 66.4 71.4 71.9 69.5 2.12

10% 70.7 68.7 71.1 70.5 73.2 71.1 69.6 72.7 72.0 72.4 71.2 1.41

AVERAGE FLOW TIMES PER COEFFICIENT OF VARIATION

20% 72.3 71.2 73.6 73.6 73.3 73.7 72.6 73.5 73.6 73.5 73.1 0.80

30% 75.6 75.5 76.8 77.9 74.5 78.0 77.0 76.1 75.1 74.7 76.1 1.24

40% 81.1 80.7 81.4 78.8 77.8 79.1 79.6 78.7 78.7 78.9 79.5 1.19

50% 81.3 82.3 82.3 83.7 79.2 82.4 84.8 81.1 83.8 82.3 82.3 1.57

40%

50%

riat

ion

AVERAGE FLOW TIMES PER COEFFICIENT OF VARIATION

5%

10%

20%

30%

Co-

effic

ient

of v

a

Series1

0 100 200 300 400 500

Flow Times (seconds)

5%

*Note: These values represent the average results of simulations replicated ten times for a givenlevel of variation

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Effect of Variability -Kanban Pull System

Throughput For Kanban Pull System

Std

System

ProcessVariatio

n 1 2 3 4 5 6 7 8 9 10 Average

Std Dev

5% 356.2 356.9 356.8 357 356.6 357 357 356.5 357.1 356.8 356.8 0.28

10% 351.8 352.6 352.2 353.4 352.8 352.8 352.6 353.1 353.1 353.4 352.8 0.52

20% 338.5 340.4 339.7 341.3 339.4 340.7 339 338.9 340.4 339.6 339.8 0.89

30% 322.2 321.7 321.8 323.2 324.6 320.9 324.2 320.2 325.6 322.3 322.7 1.7

40% 305.1 300.5 304.3 304.6 309.2 304.4 305 304 307.4 306.5 305.1 2.3

50% 285.3 283.8 289 288.4 295.5 288.5 285.5 288.6 283.8 289.1 287.7 3.45

40%

50%

aria

tion

AVERAGE FLOW TIMES PER COEFFICIENT OF VARIATION

0 5 10 15 20 25 30 35 40 45

5%

10%

20%

30%

Coe

ffici

ent o

f v

Series1

Flow Times (seconds)

*Note: These values represent the average results of simulations replicated ten times for a givenlevel of variation

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Effect of Variability -Kanban Pull System

Average Overall WIP for Kanban

System

g

Process Standard

Variability 1 2 3 4 5 6 7 8 9 10 Average Deviation

5% 7.0 6.8 7.0 6.6 7.1 6.7 6.8 6.6 7.1 7.1 6.9 0.21

10% 6.9 6.7 7.0 6.9 7.2 7.0 6.8 7.1 7.1 7.1 7.0 0.14

20% 6.8 6.7 6.9 7.0 6.9 7.0 6.8 6.9 7.0 6.9 6.9 0.08

30% 6.8 6.8 6.9 7.0 6.7 7.0 6.9 6.8 6.8 6.7 6.8 0.11

40% 6.9 6.7 6.9 6.7 6.7 6.7 6.7 6.6 6.7 6.7 6.7 0.08

50% 6.4 6.5 6.6 6.7 6.5 6.6 6.7 6.5 6.6 6.6 6.6 0.10

40%

50%

aria

tion

AVERAGE FLOW TIMES PER COEFFICIENT OF VARIATION

0 0 5 0 10 0 15 0 20 0 25 0 30 0 35 0 40 0 45 0

5%

10%

20%

30%

Coe

ffici

ent o

f va

Series1

0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0

Flow Times (seconds)

*Note: These values represent the average results of simulations replicated ten times for a givenlevel of variation

Page 16: Lean Six Sigma Lean Six Sigma

Simulation #3Pull System CONWIPPull System- CONWIP

The same assumptions apply for the conwip system as did the pull system except for the following: A WIP level of seven units are allowed within the cellA WIP level of seven units are allowed within the cell.

The logic used to model CONWIP is that no part was allowed to enter the system until a part exited the system. This established the CONstant WIP. Within the system, the cell operates in the same y pmanner as a push system

Page 17: Lean Six Sigma Lean Six Sigma

Effect Of Variability- CONWIP System

Lead Time for CONWIP

Process StandardProcess Standard

Variability 1 2 3 4 5 6 7 8 9 10 Average Deviation

5% 70.3 70.3 70.5 70.4 70.3 70.4 70.4 70.4 70.3 70.3 70.4 0.07

10% 71.4 71.3 71.3 71.4 71.2 71.2 71.3 71.3 71.3 71.3 71.3 0.06

20% 74 2 74 4 74 4 74 7 74 1 74 3 74 6 74 1 74 6 74 9 74 4 0 2520% 74.2 74.4 74.4 74.7 74.1 74.3 74.6 74.1 74.6 74.9 74.4 0.25

30% 78.2 78.3 78.7 78.0 78.0 78.0 78.5 78.1 78.6 78.7 78.3 0.29

40% 82.7 82.3 83.0 82.6 83.0 82.3 82.8 82.9 83.2 82.3 82.7 0.33

50% 87.8 86.7 86.8 87.1 87.9 87.1 86.9 87.9 87.0 87.4 87.3 0.47

30%

40%

50%

varia

tion

AVERAGE LEAD TIMES PER COEFFICIENT OF VARIATION

0.0 100.0 200.0 300.0 400.0 500.0

5%

10%

20%

30%

Coe

ffici

ent o

f

Series1

0.0 100.0 200.0 300.0 400.0 500.0

Flow Times (seconds)

*Note: These values represent the average results of simulations replicated ten times for a givenlevel of variation

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Effect Of Variability- CONWIP System

Throughput For CONWIP Pull System

Process 1 2 3 4 5 6 7 8 9 10 Average Standard

5% 358.4 358.5 357.5 357.7 358.4 358.1 358 357.8 358.4 358.5 358.1 0.36

10% 353 353.6 353.4 353.1 354.1 353.8 353.3 353.3 353.6 353.6 353.5 0.31

20% 339 5 338 8 338 6 337 6 340 3 338 9 338 340 1 337 8 336 6 338 6 1 1520% 339.5 338.8 338.6 337.6 340.3 338.9 338 340.1 337.8 336.6 338.6 1.15

30% 322.2 321.7 320.5 323.1 323.3 323.2 321 322.5 320.8 320.1 321.8 1.19

40% 305 305.7 303.6 305.4 303.9 306.3 304.2 304.3 303 306.5 304.8 1.19

50% 287 290.7 290.4 289.6 287 289.1 290 286.5 289.8 288.1 288.8 1.57

0.4

0.5

AVERAGE THROUGHPUT PER COEFFECIENT OF VARIATION

0 50 100 150 200 250 300 350 400

0.05

0.1

0.2

0.3

Ser ies1

Aver age T hr oughput ( pi eces/ hour )

Page 19: Lean Six Sigma Lean Six Sigma

Effect Of Variability- CONWIP System

Overall Average WIP for CONWIP

Process StandardProcess Standard

Variability 1 2 3 4 5 6 7 8 9 10 Average Deviation

5% 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 0.00

10% 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 0.00

20% 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 0.00

AVERAGE WIP PER COEFFICIENT OF VARIATION

20% 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 0.00

30% 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 0.00

40% 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 0.00

50% 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 0.00

30%

40%

50%

f var

iatio

n

5%

10%

20%

Co-e

ffici

ent o

f

Series1

0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0

Flow Times (seconds)*Note: These values represent the average results of simulations replicated ten times for a givenlevel of variation

Page 20: Lean Six Sigma Lean Six Sigma

Summary

Higher levels of variation effect flow time, WIP, and throughput (capacity)(capacity)

Variation early in the push production system is more detrimental than variation late in the routing g

Variation late in the kanban pull production system is more detrimental than variation early in the routing

Pull systems establish a WIP cap, that decreases flow time, while maintaining a similar throughput level (Little's Law).

Variation of flow times is drastically reduced when using pull

Tradeoff of zero WIP is lost capacity for decreased flow times

WIP of one is more robust to variation

Page 21: Lean Six Sigma Lean Six Sigma

US Manufacturer Response to Global CompetitionGlobal Competition

•Hypothesis•Is not Lean Six Sigma•Is based on greater work performed by US workforceIs based on greater work performed by US workforce

Source: National Institute for Occupational Safety and Health (NIOSH)

Page 22: Lean Six Sigma Lean Six Sigma

US Manufacturing In The News

Plant Startups Manufacturing Income

420

440

460

480

Num

ber

Decline in real earnings in manufacturing by 9.1%

nationallyGlobal Competition380

400

2003 2004 2005

Year

nationallyp

Plant Closures Manufacturing Jobs

GM, Ford announces plant shutdowns and

60,000 layoffs

Decline in Manufacturing employment by 59% since

1998

Source: Bureau of Labor Statistics

Page 23: Lean Six Sigma Lean Six Sigma

How are Manufacturers Responding?

Page 24: Lean Six Sigma Lean Six Sigma

Manufacturing Employment Trend

Manufacturing Employment; 1995 2004 Manufacturing Employment; 1995-2004

120

100

110

t Tre

nd

USCanadaAustralia

90

100

Empl

oym

ent Australia

JapanGermanyUK

70

80

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

E

YearSource: Bureau of Labor Statistics

Page 25: Lean Six Sigma Lean Six Sigma

Manufacturing Output Trend

Manufacturing Output; 1995-2004Manufacturing Output; 1995 2004

200

160

180

ut

USCanadaAustralia

120

140Out

p JapanGermanyUK

1001995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Year

Source: Bureau of Labor Statistics

Page 26: Lean Six Sigma Lean Six Sigma

Less People Higher Productivity?

Page 27: Lean Six Sigma Lean Six Sigma

Strategy 1: Operational ExcellenceLean Agile Flexible Six Sigma AutomationLean, Agile, Flexible, Six Sigma, Automation

Process

4%2% 3%91%

Move Queue Set- Up

Non – Value Added Value Added

Lead Time = 20 days

Page 28: Lean Six Sigma Lean Six Sigma

Strategy 2: Lean Enterprisegy p

ProcessMove Set- Up Process

Lead Time = 1.8 days

Move p

Non – Value Added Value Added

Page 29: Lean Six Sigma Lean Six Sigma

Strategy 3: Outsourcing

Source: Economic Policy Institute

Page 30: Lean Six Sigma Lean Six Sigma

Strategy 4: Global Supplier D l tDevelopment

Source: Economic Policy Institute

Page 31: Lean Six Sigma Lean Six Sigma

Strategy 5: Rapid New Product I d iIntroduction

A 35 2 Status QuoAverage 35.2

World-Class Manufacturers 32.6

Top Performers 17.7

Status QuoDelivery

ServiceValue

Manufacturingp

Source: www.industryweek.com “Zeroing In On World Class” D. Drickhamer, 11/1/2001

Service

Page 32: Lean Six Sigma Lean Six Sigma

Strategy 6: Premium Value gy

Page 33: Lean Six Sigma Lean Six Sigma

Strategy 7: Employees Working M N t S t ?More….Not Smarter?

What Workers Say About Stress on the JobWhat Workers Say About Stress on the Job

One-fourth of employees view their jobs as the number one stressor in their lives.

--Northwestern National Life

Three-fourths of employees believe the worker has more on-the-job stress than a generation ago.

-Princeton Survey Research Associates

Problems at work are more strongly associated with health complaints than are any other life stressor-more so than even financial problems or family problems.

S P l Fi-St. Paul Fire

and Marine Innsuance Co

Source: National Institute for Occupational Safety and Health (NIOSH)

Page 34: Lean Six Sigma Lean Six Sigma

US Manufacturer Response to Global CompetitionGlobal Competition

•Hypothesis True???????•Is not Lean Six Sigma•Is based on greater work performed by US workforceIs based on greater work performed by US workforce

Source: National Institute for Occupational Safety and Health (NIOSH)

Page 35: Lean Six Sigma Lean Six Sigma

Wh A Th Di i O Whi h YWhat Are The Dimensions On Which You Design Continuous Improvement?

Page 36: Lean Six Sigma Lean Six Sigma

Do you “design” based on the following?C itCapacity

SalesSchedulingScheduling

CapabilityCp Cpk Cr Pp PpkCp, Cpk, Cr, Pp, Ppk…

Motivated and Skilled Workforce

Page 37: Lean Six Sigma Lean Six Sigma

Lean Six SigmaD fi itiDefinition

Page 38: Lean Six Sigma Lean Six Sigma

Definition of Lean Six Sigmag

Guidon Performance Solutions defines LeanSigma as the combination of LeanGuidon Performance Solutions defines LeanSigma as the combination of Lean Thinking and Six Sigma into a single, coordinated initiative, eliminating the guesswork about when and how to use these tools – and eliminating months from the time it typically takes to implement them.

http://www.guidonps.com/capabilities/lean_six_sigma.php

Page 39: Lean Six Sigma Lean Six Sigma

Why Lean Six Sigma

Neither Lean nor Six Sigma can by themselves fulfill the operational improvement demandsimprovement demandsLean and Six Sigma are required to meet the customer expectations The successful implementation of Lean will enhance the performance of Six Sigma and vice versa

Page 40: Lean Six Sigma Lean Six Sigma

Lean and Six Sigma ContributionContribution

LeanL f li i ti

Six SigmaSi Si f d iLean focuses on eliminating

non-value added steps and activities in a process Lean makes sure we are

Six Sigma focuses on reducing variation from the remaining value-added steps. Six Sigma makes sure we are doingLean makes sure we are

working on the right activities Lean establishes the value flow as pulled by the customer

Six Sigma makes sure we are doing the right things right the very first time Six Sigma makes the value flow smoothly without interruption

Source: Air Academy Associates

Page 41: Lean Six Sigma Lean Six Sigma

Integrating Lean & Six Sigma

Six Sigma will eliminate defects but it will not address the question of how to g qoptimize process flowLean principles exclude the advanced statistical tools often required to achieve the process capabilities needed to be truly 'lean‘Each approach can result in dramatic improvement, while utilizing both methods simultaneously holds the promise of being able to address all types of process problems with the most appropriate toolkit.

Note: This chart is modified from a study done by Motorola Sixdone by Motorola Six

Sigma Research Institute

Source: Lean Sigma Institute

Page 42: Lean Six Sigma Lean Six Sigma

Roadmap to Integrate L & Si SiLean & Six Sigma

Page 43: Lean Six Sigma Lean Six Sigma

Lean Six Sigma DMAIC Integration ModelDMAIC Integration Model

Source: Lean Sigma Institute

Page 44: Lean Six Sigma Lean Six Sigma

Overlap of Lean and Six Sigma Toolsp g

Cycle Time Reduction Variance Reduction

• PF

MappingLogicalPhysical

IPOCECNXPF

• Scorecard• SOP• Mistake

JITQuickChangeovers

Time CNX

TestingCorrelations

Proofing• $$$

Single PieceFlow

5S

CorrelationsHypothesisDOE

5SsVisualControls

FMEAMSALean Si SiSix Sigma

Page 45: Lean Six Sigma Lean Six Sigma

Lean Six Sigma Principles

Specif al e in the e es of the c stomerSpecify value in the eyes of the customer.

Identify the value stream and eliminate waste / variationIdentify the value stream and eliminate waste / variation.

Make value flow smoothly at the pull of the customerMake value flow smoothly at the pull of the customer.

Involve align and empower employeesInvolve, align and empower employees.

Continuously improve knowledge in pursuit of perfectionContinuously improve knowledge in pursuit of perfection

Page 46: Lean Six Sigma Lean Six Sigma

Benefits of Lean Six Sigma

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

Remove wasteful/non-value added activitiesDecrease defects and cycle time, and increase first pass yieldsDecrease defects and cycle time, and increase first pass yields

Improve communication and teamwork through a common set of tools and techniques (a disciplined, repeatable methodology)

Develop leaders in breakthrough technologies to meet stretch goals of producing better products and services delivered faster and at lower costcost

Page 47: Lean Six Sigma Lean Six Sigma

UT’s Simplified A hApproach

Page 48: Lean Six Sigma Lean Six Sigma

Goal 1: Reduce Lead Time

Current Process

Bad Lead time

Future Process

Better Lead time

Future Process

Ti t t Ti i h Ti t it thTime part enters the system

Time part exits the system

Time part exits the system

Page 49: Lean Six Sigma Lean Six Sigma

Lead Time Impacts What?p

Can I change th l d ti ?

On-time delivery, days to produce andthe lead time? days to produce and

inventory turns

Page 50: Lean Six Sigma Lean Six Sigma

Goal 2: Reduce Variation

Total Variation

Page 51: Lean Six Sigma Lean Six Sigma

Variation Impacts What?p

Can I change the variation? Change COY and

COQCOQ

Page 52: Lean Six Sigma Lean Six Sigma

Goal 3: Change Will Only Come Through PeopleThrough People

ProductionSystems.

Employee. ProcessCapability

ContinuousImprovement

& Control.

Page 53: Lean Six Sigma Lean Six Sigma

The Role of People and Teams in Lean Six SigmaSix Sigma

Page 54: Lean Six Sigma Lean Six Sigma

UT Model Componentsp

PlanningPlanningWorkplaceFlFlowConsistencySupportSupply ChainSupply ChainSustain

Page 55: Lean Six Sigma Lean Six Sigma

UT’s Lean Implementation Template

Page 56: Lean Six Sigma Lean Six Sigma

Your Performance PredictionsPredictions

Planning – lowest – P3Planning lowest P3Workplace –highest – P1,P2Fl hi h l d ti P1Flow –high – lead time - P1Consistency – lowest – P2Support – low – P1,P2Supply Chain – ok – P1 P2Supply Chain ok P1,P2Sustain – P3

Page 57: Lean Six Sigma Lean Six Sigma

UT’sUT’s Lean Six Sigmag

Tools

Page 58: Lean Six Sigma Lean Six Sigma

Research

Value Stream MappingFMEAHuman Factors/ErgonomicsERP in SCML I l t tiLean ImplementationsProduction Rate AnalysisMeasurement Systems AnalysisMeasurement Systems AnalysisPull/CONWIP systems

Page 59: Lean Six Sigma Lean Six Sigma

Assessment

A comprehensive assessment must meet the following criteria

1. Ability to link performance metrics to the operational performance and the level of Lean and Six Sigma implementation.

2. Ability to ascertain current opportunities on the shop floor, support functions and the supply chain.

3. Ability to understand the organizational concerns.

4. Ability to consider the personnel skills and availability

5. Ability to utilize the above information to develop a customized plan for implementation

Page 60: Lean Six Sigma Lean Six Sigma

Assessment LogicAssessment

Type Focus Issues Anticipated Outcome

Time In System Shop Floor Variation

Shop Floor Constraints

Operational Operational Concerns

Customized Plan

Time In System Shop floor Support Variation

Shop Support Constraints

Time In System Office Support Sigma Variation

Office Support Constraints

Time In System Supply Chain Variation

Supply Chain Performance

O Ti D liD li R CM i R

For Change

On Time DeliveryDays to Produce Inventory Levels Setup Time

Delivery

Root Causes for Delivery Concerns

Cost Of Quality First Article Yield

Metric

Quality

Schedule Deviation

Root Causes for Quality Concerns

Root Cause Of Concerns

TechnicalSkills PersonnelPersonnel PersonnelTechnicalLean and Six Sigma Facilitation

Skills

Project Management

Personnel Ability to Support Change

Personnel

Culture Personnel Stress Levels

Current Perceived Personnel Concerns

Personnel Support To Correct Concerns

Management Support Actual Organ. Company CommitmentClear Vision and Plan Clear Expectations Organization Structure Alignment with Rewards

Support for Change

Availability ofResources Actual

Structure Support To Correct Concerns

Availability of Personnel

Resources

Availability of Capital

Actual Resources for Change

Page 61: Lean Six Sigma Lean Six Sigma

UT Assessment Methodology

Assessment ToolkitObjectivesH th

Scenarios

Comprehensive Assessment

Mapping•Product Flow

•Information Flow Basic Process

Analysis

Modeling

j

Brainstorming

Hypotheses

Assessment

Prioritize Opportunities

Process Performance•Metric Analysis

Observations

Loop AnalysisSystems Issues

Simulation Analysis

Identify Quick Victories

Loop AnalysisSystems Issues Functional Issues

StressEvaluation

Lean Assessment

Final Data

Recommendations

Page 62: Lean Six Sigma Lean Six Sigma

Sample of Training Design for the I l t ti f L Si SiImplementation of Lean Six Sigma

Category Topics

ucto

r(s)

rs ialis

t

ect

ers

rvis

ors

loye

e

Inst

ru

Hou

r

Spec

i

Proj

eLe

ade

Supe

r

Empl

Technical Lean Principles M R Technical Six Sigma Principles M R Technical Developing Lean Six Sigma Strategy M M R Technical Applying Lean Six Sigma for Leaders M M M Technical Applying Lean Six Sigma for

Employees M/R

Facilitation Introduction to Teamwork M M M M Facilitation Workstyle Assessment M M M R Facilitation Interpersonal / Communication Skills M M M Facilitation Conflict Resolution M M M R Facilitation Meeting Management / Facilitation M M M RFacilitation Meeting Management / Facilitation M M M RFacilitation Presentational Skills R M R Project Mgt Project Management Fundamentals M M R Project Mgt Planning a Project M M R Project Mgt Scheduling and Budget M M R Project Mgt Controlling & Closing M M R M = Mandatory; R = Recommended;

y; ;

Page 63: Lean Six Sigma Lean Six Sigma

Example of UT’s Training MethodologyMethodology

M d l 1 M f LModule 1 : Management of LeanModule 2 : Designing WorkplaceModule 3 : Designing Flow in LeanModule 3 : Designing Flow in LeanModule 4 : Designing Support FunctionsModule 5 : Sustaining Lean gModule 6 : Overview of Six SigmaModule 7 : DefineModule 8 : MeasureModule 9 : AnalyzeModule 10: Improve & ControlModule 10: Improve & Control