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

Lean Six Sigma: A VisionEmpowered People Operating in a Culture and Climate of Creativity & InnovationConstantly 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.

Lean Six Sigma: What is it?Lean and Six Sigma are both process improvement methodologiesLean is about speed and efficiencySix Sigma is about precision and accuracy leading to data-driven decisionsBoth rooted in the 1980s (and earlier)Lean arose as a method to optimize auto manufacturingSix Sigma evolved as a quality initiative to reduce variance in the semiconductor industry

Why Lean and Six SigmaSix Sigma will eliminate defects but it will not address the question of how to optimize process flowLean principles exclude the advanced statistical tools often required to achieve the process capabilities needed to be truly 'leanEach 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. For example, inventory reduction not only requires reducing batch sizes and linking operations by using Lean, but also minimizing process variation by utilizing Six Sigma tools.

Lean Six Sigma Goals and BenefitsAchieve total customer satisfaction and improved operational effectiveness and efficiencyRemove wasteful/non-value added activitiesDecrease defects and cycle time, and increase first pass yieldsImprove 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 cost

Lean Six Sigma Requires Behavioral ChangeLean Six Sigma Challenges Us to:Think DifferentlyWork DifferentlyAsk Questions and Challenge the Status QuoMake Decisions With Facts and DataUse New Principles, Tools and Methodologies

To Successfully Deploy Lean Six SigmaStart with the customer listen, listen, listenLeadership commitment and alignment go beyond the words change behaviorCreate momentum for changeDevelop need, vision and planCommunicate, communicate, communicateRepeatedly execute and assessDevelop necessary skill sets to obtain the desired future state at all levels of the organizationInvolve Everyone: Leadership, Champion, Master Black Belt, Black Belt, Green Belt, Employees

Basic QuestionsWhat are the customer needs?Do our products or servicesanswer the Voice of the Customerat a price he is willing to pay?How do we know?

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

Lean Six Sigma: A Powerful Methodology (DMAIC)MeasureDefineImproveAnalyzeControlwhat is important to the customer: Project Selection Team FormationEstablish Goalhow well we are doing:Collect DataConstruct Process FlowValidate Measurement Systemthe process:Analyze DataIdentify Root Causesthe process gains:Ensure Solution is Sustainedthe process performance measures:Prioritize root causesInnovate pilot solutionsValidate the improvement

The Tools and TechniquesBenchmarkingFMEAIPO DiagramKanos ModelKnowledge Based MgtProject CharterSIPOC ModelQuality Function DeploymentVoice of CustomerTask Appraisal / Task SummaryValue Stream MappingConfidence IntervalsMeasurement System AnalysisNominal Group TechniquePairwise RankingPhysical Process FlowProcess Capability AnalysisProcess Flow DiagramProcess ObservationTime Value MapValue Stream MappingWaste AnalysisAffinity DiagramBrainstormingCause & Effect Diagrame-testF-testFault Tree AnalysisFMEAHistogramHistorical Data AnalysisPareto ChartReality TreeRegression AnalysisScatter Diagramt-testThematic Content AnalysisTukey End Count Test5 WhysDFSSDOEKanbanMistake ProofingPF/CE/CNX/SOPStandard WorkTakt TimeTheory of ConstraintsTotal Productive MaintenanceVisual ManagementWork Cell Design5S Workplace OrganizationControl ChartsControl PlanReaction PlanRun ChartsStandard Operating Procedures

Definition of a Value StreamThe 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 FlowInformation Flow: Quickly In All Directions

Understanding the Value StreamWe are often part of a value creating streamUltimately, the intent of the stream is to answer the end-users needsKnowing who our customers are is the first step in understanding the stream; our primary customer may not be the end-userKnowing how the stream and our piece works or doesnt work in meeting customer needs is what Lean Six Sigma is aboutHappyCustomerTheirSupplierOur PieceTheirServiceOur SupplierOurCustomer

Summarizing the Power of Lean Six SigmaProvides a world class business strategyEncourages a common vision and common language shared by allPromotes teamwork and REWARDS successCombines aggressive goals with a method and a set of toolsRequires the application of tools throughout entire lifecycle of a product or serviceProduces knowledge for improved cycle time, reduced defects, and lowercostBetter products and servicesdelivered faster and at lower cost=Improved Customer Value

When done right it impacts the annual operating budget and the annual report (reference GE's annual report for 97/98/99. See GE's website or call AAA office for a copy).