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corporate trainer: professional investor good is not enough…..excellence is the goal Introduction to lean six sigma Saturday, 28 th november 2015 cep for the institute of cost accountants of india – pune chapter CMA manohar v dansingani, CSCA Views expressed are personal, without prejudice & without recourse. e&oe. CSCA

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Page 1: Introduction to lean six sigma - Institute of Cost ... · Introduction to lean six sigma Saturday, 28th november 2015 cep for the institute of cost accountants of india – pune chapter

corporate trainer: professional investor

good is not enough…..excellence is the goal

Introduction to lean six sigma

Saturday, 28th november 2015

cep for the institute of cost accountants of india –

pune chapter

CMA manohar v dansingani, CSCA

Views expressed are personal, without prejudice &

without recourse. e&oe.

CSCA

Page 2: Introduction to lean six sigma - Institute of Cost ... · Introduction to lean six sigma Saturday, 28th november 2015 cep for the institute of cost accountants of india – pune chapter

CMA manohar v dansingani, CSCA

CMA manohar v dansingani, CSCA

National Merit Scholar, Rank Holder in Professional Exams

Visiting Faculty at The Institute of Cost Accountants of India (best faculty award)

IBS Business School

Gokhale Institute of Politics & Economics

National Academy of Defence Financial Management

CPE Trainer for NISM (National Institute of Securities Markets)

CPE Trainer for BSE Institute

Train the Trainers, Faculty Development, CEP & Management

Development Modules.

Conducted Customized Sessions for:

ICAI

IBS

GIPE

NADFM

MCCIA

Associate Member: ICAI-CMA

Certified Six Sigma Black Belt Professional

Associate Member: ACFE

ISCEA Certified Instructor

CPE Trainer: NISM

Global Mentor: SCNext

Certified Supply Chain Analyst

Page 3: Introduction to lean six sigma - Institute of Cost ... · Introduction to lean six sigma Saturday, 28th november 2015 cep for the institute of cost accountants of india – pune chapter

CMA manohar v dansingani, CSCA

*

*The Tragedy is Not That

*We Aim too High & Fail,

*But that we Aim Too Low

*& Succeed !!

Page 4: Introduction to lean six sigma - Institute of Cost ... · Introduction to lean six sigma Saturday, 28th november 2015 cep for the institute of cost accountants of india – pune chapter

CMA manohar v dansingani, CSCA

*Good news

*Bad news

Page 5: Introduction to lean six sigma - Institute of Cost ... · Introduction to lean six sigma Saturday, 28th november 2015 cep for the institute of cost accountants of india – pune chapter

CMA manohar v dansingani, CSCA

*

*I hope to learn from all of you….Thank You

*2 * sessions of 60 minutes each

*Break for 5 minutes

*Request your active participation

*This will be a brief overview of Lean Six Sigma

*TIME MANAGER: PLEASE INFORM ME AFTER 45 MINUTES IN EACH SESSION

Page 6: Introduction to lean six sigma - Institute of Cost ... · Introduction to lean six sigma Saturday, 28th november 2015 cep for the institute of cost accountants of india – pune chapter

CMA manohar v dansingani, CSCA

*

*“We don’t know what we don’t know.

*We can’t act on what we don’t know.

*We won’t know until we search.

*We won’t search for what we don’t question.

*We don’t question what we don’t measure.

*Hence, we just don’t know.”

Page 7: Introduction to lean six sigma - Institute of Cost ... · Introduction to lean six sigma Saturday, 28th november 2015 cep for the institute of cost accountants of india – pune chapter

CMA manohar v dansingani, CSCA

*

*Not a formal training session

*Brief introduction & understanding

*Shall keep it simple & practical

*Relevance in normal profession or business

*Dispel the fear which the terms invoke

*LEAN & SIX SIGMA ARE A POWERFUL

COMBINATION & THAT’S HOW WE SHALL

DISCUSS THEM

Page 8: Introduction to lean six sigma - Institute of Cost ... · Introduction to lean six sigma Saturday, 28th november 2015 cep for the institute of cost accountants of india – pune chapter

CMA manohar v dansingani, CSCA

*

*Sigma is the Greek letter which denotes

Standard Deviation

This is the lower-case alphabet

The upper-case sigma below, is used to signify

summation

Page 9: Introduction to lean six sigma - Institute of Cost ... · Introduction to lean six sigma Saturday, 28th november 2015 cep for the institute of cost accountants of india – pune chapter

*

*The Customer

*The Process

*The Employee

Page 10: Introduction to lean six sigma - Institute of Cost ... · Introduction to lean six sigma Saturday, 28th november 2015 cep for the institute of cost accountants of india – pune chapter

*

*Customers are the center of any company’s universe: they define quality. They expect performance, reliability, competitive prices, on-time delivery, service, clear and correct transaction processing and more. Our customers’ satisfaction is priority number 1. If we don't keep them happy, someone else will.

Page 11: Introduction to lean six sigma - Institute of Cost ... · Introduction to lean six sigma Saturday, 28th november 2015 cep for the institute of cost accountants of india – pune chapter

*

*Outside-In Thinking

*By understanding the

transaction lifecycle from the

customer's needs and

processes, we can discover

what they are seeing and

feeling. With this knowledge,

we can identify areas where

we can add significant value

or improvement from their

perspective

Page 12: Introduction to lean six sigma - Institute of Cost ... · Introduction to lean six sigma Saturday, 28th november 2015 cep for the institute of cost accountants of india – pune chapter

CMA manohar v dansingani, CSCA

*Two Volunteers please

Page 13: Introduction to lean six sigma - Institute of Cost ... · Introduction to lean six sigma Saturday, 28th november 2015 cep for the institute of cost accountants of india – pune chapter

CMA manohar v dansingani, CSCA

*

*Suggestions for 100% accuracy at all times

*(almost)

Page 14: Introduction to lean six sigma - Institute of Cost ... · Introduction to lean six sigma Saturday, 28th november 2015 cep for the institute of cost accountants of india – pune chapter

CMA manohar v dansingani, CSCA

Page 15: Introduction to lean six sigma - Institute of Cost ... · Introduction to lean six sigma Saturday, 28th november 2015 cep for the institute of cost accountants of india – pune chapter

*

LS

L

USL

Customer Target

Defect

s

Defect

s

Prevent Defects by

Reducing Variation

LS

L

USL

Customer Target

Defect

s

Prevent Defects by

Centering Process LS

L

USL

Customer Target

Meet Customer

Requirements Lean eliminates waste, adds

value & hence reduces (cost) or

improves (value) the average

Six Sigma reduces variation

or defects which the customer

faces & improves profits CMA manohar v dansingani, CSCA

Page 16: Introduction to lean six sigma - Institute of Cost ... · Introduction to lean six sigma Saturday, 28th november 2015 cep for the institute of cost accountants of india – pune chapter

1930 1950 1900

Ford

Assembly

Line

Guinness

Brewery

Shewhart

Introduces

SPC

Gilbreth, Inc.

•Management

Theory

•Industrial

Engineering

Deming

•14 Points

•7 Deadly Diseases

Toyota Production

System

*

CMA manohar v dansingani, CSCA

Frank Gilbreth 1st proposed

the position of “caddy” to a

surgeon

& standardized

techniques for army recruits

to reassemble/disassemble

their weapons even in total

darkness

Page 17: Introduction to lean six sigma - Institute of Cost ... · Introduction to lean six sigma Saturday, 28th november 2015 cep for the institute of cost accountants of india – pune chapter

1990 2000 1980

Motorola

Introduces Six

Sigma

Just – in–

Time

SPC

Lean Mfg.

TQM

AlliedSIgnal

GE Adapt LSS to

Business

Processes

*

CMA manohar v dansingani, CSCA

Page 18: Introduction to lean six sigma - Institute of Cost ... · Introduction to lean six sigma Saturday, 28th november 2015 cep for the institute of cost accountants of india – pune chapter

CMA manohar v dansingani, CSCA

A Vision and Philosophical commitment to

our consumers to offer the highest quality,

lowest cost products

A Metric that demonstrates quality levels at

99.9997% performance for products and

processs

A Benchmark of our product and process

capability for comparison to ‘best in class’

A practical application of statistical Tools and

Methods to help us measure, analyze,

improve, and control our process

Six Sigma

Page 19: Introduction to lean six sigma - Institute of Cost ... · Introduction to lean six sigma Saturday, 28th november 2015 cep for the institute of cost accountants of india – pune chapter

*Six Sigma as a Philosophy

Internal &

External

Failure

Costs

Prevention &

Appraisal

Costs

Old Belief

4 Co

sts

Internal &

External

Failure Costs

Prevention &

Appraisal

Costs

New Belief Co

sts

4

5

6

Quality

Quality

Old Belief

High Quality = High Cost

New Belief

High Quality = Low Cost

is a measure of how much

variation exists in a process

CMA manohar v dansingani, CSCA

Page 20: Introduction to lean six sigma - Institute of Cost ... · Introduction to lean six sigma Saturday, 28th november 2015 cep for the institute of cost accountants of india – pune chapter

* Focus: The End

User *Customer: Internal or

External

*Consumer: The End User

the “Voice of the Consumer” (Consumer Cue)

must be translated into

the “Voice of the Engineer” (Technical Requirement)

Quality Function Deployment

CMA manohar v dansingani, CSCA

Page 21: Introduction to lean six sigma - Institute of Cost ... · Introduction to lean six sigma Saturday, 28th november 2015 cep for the institute of cost accountants of india – pune chapter

*

Critical to Quality (CTQ): Attributes most important to the customer

Defect: Failing to deliver what the customer wants

Process Capability: What your process can deliver

Variation: What the customer sees and feels

Stable Operations: Ensuring consistent, predictable processes to improve what the customer sees and feels

Design for Six Sigma: Designing to meet customer needs and process capability

Page 22: Introduction to lean six sigma - Institute of Cost ... · Introduction to lean six sigma Saturday, 28th november 2015 cep for the institute of cost accountants of india – pune chapter

CMA manohar v dansingani, CSCA

WHAT’S IN IT FOR YOU?

Customers don't judge us on averages, they feel the variance in each transaction, each product we ship.

Six Sigma focuses first on reducing process variation and then on improving the process capability.

Customers value consistent, predictable business processes that deliver world-class levels of quality.

Page 23: Introduction to lean six sigma - Institute of Cost ... · Introduction to lean six sigma Saturday, 28th november 2015 cep for the institute of cost accountants of india – pune chapter

CMA manohar v dansingani, CSCA

Assume Daily

Entries Errors % error Reliability 20 entries per client

Your assistant 20 1 0.05 0.95 1 error in accounts of every client

Checked by every day

another assistant 20 1 0.05 0.95

But now, we are concerned about the joint probability of both of them making a mistake in the same

entry or, 0.05*0.05

Entries Errors % error Reliability

or one error every 400 1 0.0025 0.9975

400 Entries

As if by magic, this system of unbiased, independent cross-check ensures that there is only

ONE ERROR EVERY 20 CLIENTS, per day

Page 24: Introduction to lean six sigma - Institute of Cost ... · Introduction to lean six sigma Saturday, 28th november 2015 cep for the institute of cost accountants of india – pune chapter

CMA manohar v dansingani, CSCA

WOW! THAT IS SOUND BUSINESS SENSE. SHALL WE PROCEED?

Page 25: Introduction to lean six sigma - Institute of Cost ... · Introduction to lean six sigma Saturday, 28th november 2015 cep for the institute of cost accountants of india – pune chapter

CMA manohar v dansingani, CSCA

*Carl Friedrich Gauss (1777-1855) introduced the concept of the normal curve.

* In the 1920’s Walter Shewhart showed that three sigma from the mean is the point where a process requires correction. One of W. Edwards Deming's teachers, he preached the importance of adapting management processes to create profitable situations for both businesses and consumers, promoting the utilization of his own creation -- the SPC control chart.

William Gosset discovered the t-distribution while working

for the Guinness brewing company. Because his employer

prevented employees from publishing papers, Gosset

published his research under the pseudonym Student.

That’s why his distribution is often called Student’s t-

distribution. (t-distribution, used when sample size is small &

the population standard deviation is unknown)

Page 26: Introduction to lean six sigma - Institute of Cost ... · Introduction to lean six sigma Saturday, 28th november 2015 cep for the institute of cost accountants of india – pune chapter

CMA manohar v dansingani, CSCA

* Create and communicate to all employees a statement of the aims and purposes of the

company.

* Adapt to the new philosophy of the day; industries and economics are always changing.

* Build quality into a product throughout production.

* End the practice of awarding business on the basis of price tag alone; instead, try a long-

term relationship based on established loyalty and trust.

* Work to constantly improve quality and productivity.

* Institute on-the-job training.

* Teach and institute leadership to improve all job functions.

* Drive out fear; create trust.

* Strive to reduce intradepartmental conflicts.

* Eliminate exhortations for the work force; instead, focus on the system and morale.

* (a) Eliminate work standard quotas for production. Substitute leadership methods for

improvement.

(b) Eliminate MBO. Avoid numerical goals. Alternatively, learn the capabilities of processes,

and how to improve them.

* Remove barriers that rob people of pride of workmanship

* Educate with self-improvement programs.

* Include everyone in the company to accomplish the transformation.

Dr. W. Edwards Deming

Page 27: Introduction to lean six sigma - Institute of Cost ... · Introduction to lean six sigma Saturday, 28th november 2015 cep for the institute of cost accountants of india – pune chapter

CMA manohar v dansingani, CSCA

*

* In the early and mid-1980s with Chairman Bob Galvin at the helm, Motorola developed this standard & designed its methodology.

* Bill Smith (a Motorola engineer) was a co-founder & he coined the term “Six Sigma”

* Dr. Mikel Harry was the other co-founder & he said,

* “Six Sigma shifts the focus from the business of quality to the quality of business”

* (“Six Sigma” is a federally registered trademark of Motorola).

Page 28: Introduction to lean six sigma - Institute of Cost ... · Introduction to lean six sigma Saturday, 28th november 2015 cep for the institute of cost accountants of india – pune chapter

CMA manohar v dansingani, CSCA

*

*G E, under the leadership of

*Jack Welch

*Promoted it aggressively & spread awareness

Page 29: Introduction to lean six sigma - Institute of Cost ... · Introduction to lean six sigma Saturday, 28th november 2015 cep for the institute of cost accountants of india – pune chapter

CMA manohar v dansingani, CSCA

*Six Sigma helped Motorola realize powerful

bottom-line results in their organization – in

fact, they documented more than $16 Billion in

savings

*

Page 30: Introduction to lean six sigma - Institute of Cost ... · Introduction to lean six sigma Saturday, 28th november 2015 cep for the institute of cost accountants of india – pune chapter

CMA manohar v dansingani, CSCA

*

*Six Sigma can be seen as: a vision; a

philosophy; a symbol; a metric; a goal; a

methodology.”

Page 31: Introduction to lean six sigma - Institute of Cost ... · Introduction to lean six sigma Saturday, 28th november 2015 cep for the institute of cost accountants of india – pune chapter

CMA manohar v dansingani, CSCA

P d c a Plan Do Check act

Continuous improvement

Popularized by Dr. Edward Deming,

known as “Deming Cycle”, but he always

called It the “Shewhart Cycle”

Later on, Deming modified it to

“PLAN, DO, STUDY, ACT”

Page 32: Introduction to lean six sigma - Institute of Cost ... · Introduction to lean six sigma Saturday, 28th november 2015 cep for the institute of cost accountants of india – pune chapter

CMA manohar v dansingani, CSCA

DMAIC

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33

Phases of Six Sigma are:

*Define specific goals to achieve outcomes,

consistent with customers demand and business strategy

* Measure the existing process & output

*Analyze problems ,cause and effects must be

considered

*Improve process on bases of measurements

and analysis, aim is to eliminate defects

*Control process to minimize defects

DMAIC

Page 34: Introduction to lean six sigma - Institute of Cost ... · Introduction to lean six sigma Saturday, 28th november 2015 cep for the institute of cost accountants of india – pune chapter

CMA manohar v dansingani, CSCA

DMAIC Define

Measure

Analyze

Improve

Control

•Define the project goals and customer (internal and

external) deliverables

•Measure the process to determine current

performance

•Analyze and determine the root cause(s) of the

defects

•Improve the process by eliminating defects

•Control future process performance

When to Use DMAIC

The DMAIC methodology, instead of the DMADV methodology, should be

used when a product or process is in existence at your company but is not

meeting customer specification or is not performing adequately.

Page 35: Introduction to lean six sigma - Institute of Cost ... · Introduction to lean six sigma Saturday, 28th november 2015 cep for the institute of cost accountants of india – pune chapter

CMA manohar v dansingani, CSCA

DMADV Define

Measure

Analyze

Design

Verify

•Define the project goals and customer (internal

and external) deliverables

•Measure and determine customer needs and

specifications

•Analyze the process options to meet the customer

needs

•Design (detailed) the process to meet the

customer needs

•Verify the design performance and ability to meet

customer needs

When to Use DMADV

The DMADV methodology, instead of the DMAIC methodology, should be

used when:

•A product or process is not in existence at your company and one needs

to be developed

•The existing product or process exists and has been optimized

(using either DMAIC or not) and still does not meet the level of customer

specification or Six Sigma level

Page 36: Introduction to lean six sigma - Institute of Cost ... · Introduction to lean six sigma Saturday, 28th november 2015 cep for the institute of cost accountants of india – pune chapter

CMA manohar v dansingani, CSCA

*

*The problem

*Restaurant….complaints from customers

*Discuss

*Feedback not points 1 to 5 for satisfaction

*But: rated on most dissatisfying, in descending

order

Page 37: Introduction to lean six sigma - Institute of Cost ... · Introduction to lean six sigma Saturday, 28th november 2015 cep for the institute of cost accountants of india – pune chapter

CMA manohar v dansingani, CSCA

*

*The problem

* Restaurant….complaints from customers

* Food

* Ambience

* Service

* Billing

* Music

* Tableware

* Waiting for table

* Dessert Trolley

* Parking

Page 38: Introduction to lean six sigma - Institute of Cost ... · Introduction to lean six sigma Saturday, 28th november 2015 cep for the institute of cost accountants of india – pune chapter

CMA manohar v dansingani, CSCA *

*Restaurant….complaints from customers

*Parking 170 22.67% 22.67%

*Waiting for table 140 18.67% 41.33%

*Music 95 12.67% 54.00%

*Billing 80 10.67% 64.67%

*Ambience 75 10.00% 74.67%

*Service 70 9.33% 84.00%

*Food 50 6.67% 90.67%

*Tableware 40 5.33% 96.00%

*Dessert Trolley 30 4.00% 100.00%

750 1

Page 39: Introduction to lean six sigma - Institute of Cost ... · Introduction to lean six sigma Saturday, 28th november 2015 cep for the institute of cost accountants of india – pune chapter

CMA manohar v dansingani, CSCA

0

20

40

60

80

100

120

140

160

180

Number of complaints

Number of complaints

Page 40: Introduction to lean six sigma - Institute of Cost ... · Introduction to lean six sigma Saturday, 28th november 2015 cep for the institute of cost accountants of india – pune chapter

CMA manohar v dansingani, CSCA

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

120.00%

Percentage (ParetoChart)

Percentage (ParetoChart)

What do you observe?

Page 41: Introduction to lean six sigma - Institute of Cost ... · Introduction to lean six sigma Saturday, 28th november 2015 cep for the institute of cost accountants of india – pune chapter

CMA manohar v dansingani, CSCA

S SUPPLIER I INPUT P PROCESS O OUTPUT C CUSTOMER

Useful to Define the problem

Page 42: Introduction to lean six sigma - Institute of Cost ... · Introduction to lean six sigma Saturday, 28th november 2015 cep for the institute of cost accountants of india – pune chapter

CMA manohar v dansingani, CSCA

BREAK

Page 43: Introduction to lean six sigma - Institute of Cost ... · Introduction to lean six sigma Saturday, 28th november 2015 cep for the institute of cost accountants of india – pune chapter

CMA manohar v dansingani, CSCA

WELCOME BACK

Page 44: Introduction to lean six sigma - Institute of Cost ... · Introduction to lean six sigma Saturday, 28th november 2015 cep for the institute of cost accountants of india – pune chapter

CMA manohar v dansingani, CSCA

*

TOO HOT, TOO COLD, QUANTITY, TASTE…..

*What do you say as customers?

*What have you observed?

*(also, fuse wire, pressure cooker…)

Page 45: Introduction to lean six sigma - Institute of Cost ... · Introduction to lean six sigma Saturday, 28th november 2015 cep for the institute of cost accountants of india – pune chapter

CMA manohar v dansingani, CSCA

*

*Audit Report errors

*A) Society/Association

*B) Capital items/Revenue items

*C) Interest waived not shown nor any note

*D) Deficit shown under Surplus with negative

sign

Page 46: Introduction to lean six sigma - Institute of Cost ... · Introduction to lean six sigma Saturday, 28th november 2015 cep for the institute of cost accountants of india – pune chapter

CMA manohar v dansingani, CSCA

According to the SEC, a complete failure of internal controls over Satyam’s

invoice management system, books of account, and financial reporting

enabled the company’s then-senior managers to intentionally overstate

revenue, income, earnings per share, cash, and interest-bearing deposits from

2003 through September 2008 by over $1 billion, or more than half of the

company’s total assets

2015 Fraud Examiners Manual (International) (1.211 & 1.212) ACFE

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CMA manohar v dansingani, CSCA

2015 Fraud Examiners Manual (International) (1.211 & 1.212) ACFE

In confirming Satyam’s cash balance, the auditors relied on management

to send confirmation requests to the company’s banks and to return

purported confirmation responses from the banks to the auditors. This

was in direct conflict with standard audit procedures, which require that

1) cash balances be independently confirmed with the financial

Institutions in which the accounts are held, and

2) the auditors retain control over the confirmation documents to reduce

the risk of tampering. Had this basic procedure been performed in

accordance with standards, it is likely that the auditors would have

caught the fraud themselves.

Emphasis, highlighting, added by me

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CMA manohar v dansingani, CSCA

Page 49: Introduction to lean six sigma - Institute of Cost ... · Introduction to lean six sigma Saturday, 28th november 2015 cep for the institute of cost accountants of india – pune chapter

CMA manohar v dansingani, CSCA

Calculator 200 components

Each one 99.75% reliable

Every 400 components 1 faulty component

How reliable

is the calculator 60.62%

Every 400 calculators 242 defective

calculators

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CMA manohar v dansingani, CSCA

*

“If there are processes that generate a lot of

negative customer feedback, whether that

customer is internal or external, the

components of Six Sigma should be considered

as a means to study and rectify the problem.”

Page 51: Introduction to lean six sigma - Institute of Cost ... · Introduction to lean six sigma Saturday, 28th november 2015 cep for the institute of cost accountants of india – pune chapter

CMA manohar v dansingani, CSCA

*

*7QC tools

Check Sheets (collect data to make improvements)

Pareto Charts( define problem and frequency)

Cause and effect diagram (Identify possible causes to solve problem)

Histogram (Bar charts of accumulated data to evaluate distribution of data)

Scatter diagram (plots many data points and pattern between two variables)

Flow Chart (Identify unwanted steps)

Control charts (Control limits around mean value)

Page 52: Introduction to lean six sigma - Institute of Cost ... · Introduction to lean six sigma Saturday, 28th november 2015 cep for the institute of cost accountants of india – pune chapter

CMA manohar v dansingani, CSCA Ishikawa Diagram

Page 53: Introduction to lean six sigma - Institute of Cost ... · Introduction to lean six sigma Saturday, 28th november 2015 cep for the institute of cost accountants of india – pune chapter

CMA manohar v dansingani, CSCA

5 WHYS

WHY

WHY

WHY

WHY

WHY

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CMA manohar v dansingani, CSCA

*

*TQM great….but did not show resultant profits

*Six sigma project will only be initiated if it can

*Deliver higher profits (ROI)

Page 55: Introduction to lean six sigma - Institute of Cost ... · Introduction to lean six sigma Saturday, 28th november 2015 cep for the institute of cost accountants of india – pune chapter

*

*PROBLEM?

* Identify Potential Causes (X’s)

* Investigate Significance of X’s

*Collect data on x’s

*Graphical/Quantitative analysis

* Identify Significant Causes to focus on (y=f(X))

*Evaluate the impact of x’s on y

*Here you identify the critical factors of a “good” output and the root causes of defects or “bad” output.

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*

*Generate Potential Solutions

*Select & Test Solution

*Develop Implementation Plan

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*

*Create Control & Monitoring Plan

*Mistake proof the process

*Determine the x’s to control and methods

*Determine Y’s to monitor

*Implement Full Scale Solution

*Revise/develop process

* Implement and evaluate solution

*Finalize Transition

*Develop transition plan

*Handoff process to owner

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CMA manohar v dansingani, CSCA

* http://www.motorolasolutions.com/en_us/services/learning.html

http://www.ge.com/en/company/companyinfo/quality/whatis.htm

http://www.iassc.org/

https://goleansixsigma.com/

http://www.leanproduction.com/lean-glossary.html

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CMA manohar v dansingani, CSCA

*

*Taiichi Ohno – Toyota Production System.

*1940s-1950s company was on verge of bankruptcy

*Dynamics of industry were changing – moving from mass production to more flexible, shorter, varied batch runs (people wanted more colors, different features, more models, etc).

*Ohno was inspired by 3 observations on a trip to America

*Henry Ford’s assembly line inspired the principle of flow (keep products moving because no value is added while it is sitting still)

*The Indy 500 – Rapid Changeover

*The American Grocery Store – led to the Pull system – material use signals when and how stock needs to be replenished

https://www.youtube.com/watch?v=5LyfX

ZaDq_k

Amazing tyre change

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*

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CMA manohar v dansingani, CSCA *

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CMA manohar v dansingani, CSCA

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CMA manohar v dansingani, CSCA

*

*Standardized Work (difference between

standardized & identical)

*JIT

*Level loading

*Kaizen

*Respect

*Employee training & empowerment

*(the list is not comprehensive)

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CMA manohar v dansingani, CSCA *

*Kaizen (Continuous Improvement)

*5S – this methodology reduces waste through improved workplace organization and visual management

*seiri, seiton, seiso, seiketsu, and shitsuke *Sort, Set in order, Shine, Standardize and Sustain

*Kanban – a Japanese term that can be translated as “signal,” “card,” or “sign.”

*Most often a physical signal (paper card of plastic bin), that indicates when it is time to order more, from whom, and in what quantity.

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CMA manohar v dansingani, CSCA

*

*5 s

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*

*Lean is used for shorter, less complex

problems….often time driven

*Focus on Eliminating waste & adding value

*Six Sigma…bigger, more analytical

approach..often quality driven

*Focus on reducing variance & delivering

improved profits (primarily thru savings)

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Lean vs. Six Sigma 67 .PPT

*

LEAN = Improvement principles focused on

dramatically improving process speed and eliminating

the eight deadly wastes.

Improve

Process-

Pull

Control

Process

Analyze

Process-

Flow

Measure

Value

Define

Value

SIX SIGMA = Breakthrough Process, Design, or

Improvement Teams focused on eliminating chronic

problems and reducing variation in processes.

Improve Control Analyze Measure

Define

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*

Voice of Customer

Voice of Process

The Voice of the Process is

independent of the Voice of the

Customer

Sigma

Capability

Defects per

Million

Opportunitie

s

% Yield

2 308,537 69.15%

3 66,807 93.32%

4 6,210 99.38%

5 233 99.98%

6 3.4 99.99966%

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Lean Value Stream Management starts with defining

value in terms of products and process capabilities to

provide the customer with what they need at the right

time and at an appropriate price.

Value

added

Non-value

added/waste

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Poka Yoke

Error proofing or mistake proofing

Adopted by Dr. Shigeo Shingo as part of the TPS

In 1960

Target is zero defects

Originally, called “baka-yoke”…but this means “Fool-

Proofing”, so name changed later

e.g. Plug sockets, petrol pump nozzle,

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*Spaghetti chart

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CMA manohar v dansingani, CSCA * Go to GEMBA

Deming example

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Takt German Taktzeit Beat or Cycle Time

Net Operating Time OT Customer Requirements CR

CUSTOMER REQUIREMENTS 50 every 8 hours

minutes One Shift of 8 hours 480

Break 30 Start up meeting 10 Lunch 30 End clear up 10 Machine set up 15

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CMA manohar v dansingani, CSCA

*minutes

One Shift of 8 hours 480 Break 30 Start up meeting 10 Lunch 30 End clear up 10 Machine set up 15

95

Net Operating Time (NOT) 385 minutes/shift

Customer Requirements 50 units/shift

takt time 7.7

7.7 units per minute to meet customer requirements

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A3 THINKING

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Lean Six Sigma can only be successful….

if there is very

Strong leadership support

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77

The Impact of Added Inspection

1,000,000 ppm

3.4 ppm

6 ppm

If the likelihood of detecting the defect is 70% and we have

10 consecutive inspectors with this level of capability, we

would expect about 6 escaping defects out of every

1,000,000 defects produced.

You can save your self by producing quality not by Inspection You can save your self by producing quality not by Inspection

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*Video of TPS & discuss

https://www.youtube.com/watch?v=kce2

L23yLcw

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*

Critical to Quality: Attributes most important to the

customer

Defect: Failing to deliver what the customer

wants

Process

Capability: What your process can deliver

Variation: What the customer sees and feels

Stable

Operations:

Ensuring consistent, predictable

processes to improve what the

customer sees and feels

Design for Six

Sigma:

Designing to meet customer needs

and process capability

Key Concepts of Six Sigma

At its core, Six Sigma revolves around a few key concepts.

http://www.ge.com/en/company/companyinfo/quality/whatis.htm

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CMA manohar v dansingani, CSCA *

*

Control

Process

Improve

Process - Pull

Analyze

Process - Flow

Measure

Value

Define

Value

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*aristotle

* we are what we *Repeatedly do; *Excellence, then, is not an act but a habit

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THANK YOU

FOR YOUR PATIENCE,

TIME & ATTENTION

HAVE A NICE DAY

Questions ?

Views expressed are personal, without prejudice &

without recourse. e&oe.