Continual Improvement Continual Improvement Methods with Six Sigma, Methods with Six Sigma,

Lean, and Lean Six SigmaLean, and Lean Six Sigma

Lakshmi ChavaSwetha Munagala

Stephen Rich

Major TopicsMajor Topics Rationale for Continual Improvement Management’s Role in Continual Improvement Essential Improvement Activities Structure for Quality Improvement The Scientific Approach Identification of Improvement Needs Development of Improvement Plans Common Improvement Strategies Additional Improvement Strategies The Kaizen Approach Goldratt’s Theory of Constraints The CEDAC Approach Six Sigma Concept Lean Operations Lean Six Sigma

Continual ImprovementContinual Improvement

One of the most fundamental elements of total quality.

This concept applies to processes and the people who are operating them as well as to the products resulting from the processes.

Rationale for Continual Rationale for Continual ImprovementImprovementContinual Improvement is

fundamental to success in the global market place.

Customer needs are not static; they change continually.

Management’s Role in Management’s Role in Continual ImprovementContinual ImprovementIn his book Juran on Leadership for

Quality, Joseph Juran writes:“ The picture of a company reaping big rewards through

quality improvement is incomplete unless it includes some realities that have been unwelcome to most upper managers. Chief among these realities is the fact that the upper managers must participate personally and extensively in the effort. It is not enough to establish policies, create awareness, and then leave all else to subordinates. That has been tried, over and over again, with disappointing results”.

Cont’d…Cont’d…Management should play necessary

role in continual improvement by doing the following:

• Establishing an organization-wide quality council.

• Working with the quality council.• Providing the necessary moral and

physical support.• Scheduling periodic progress

reviews.• Building continual quality

improvement in to the regular reward system.

Essential Improvement Essential Improvement ActivitiesActivitiesMaintain Communication.Correct obvious problems.Look upstream.Document problems and

progress.Monitor changes.

Customers Needs Change Customers Needs Change ContinuallyContinually

“ Quality improvement is needed for both kinds of quality: product features and freedom from deficiencies”.

Improvement Must Be Improvement Must Be ContinualContinual

“Improve constantly and forever the system of production and service. Improvement is not a one-time effort. Management is obligated to continually look for ways to reduce waste and improve quality”.

Improvement Is Not Putting Improvement Is Not Putting Out FiresOut Fires“Putting out fires is not

improvement. Finding a point out of control, finding the special cause and removing it is only putting the process back to where it was in the first place. It is not improvement of process”.

StructureStructure for Quality for Quality ImprovementImprovementEstablishing a quality council.Develop a statement of

responsibilities. Formulating policy as it relates to quality. Setting the benchmarks and dimensions. Establishing the team and project selection

processes. Providing the necessary resources. Implementing the project. Establishing quality measures for monitoring

progress and undertaking monitoring efforts. Implementing appropriate reward and recognition

program.

Cont’d…Cont’d…Establish the necessary

infrastructure.

The Scientific ApproachThe Scientific ApproachCollect Meaningful Data.Identify Root Causes of problems.Develop Appropriate Solutions.Plan and Make Changes.

Collecting Meaningful DataCollecting Meaningful Data

Before collecting meaningful data, decide exactly

What data are needed How they can be best collected Where the data exists How they will be measured How you will know the data are

accurate

Identify Root Causes of Identify Root Causes of ProblemsProblemsToo many resources are wasted by

organizations attempting to solve symptoms rather than problems. Total quality tools will help in separating problems from causes.

Develop Appropriate Develop Appropriate SolutionsSolutions Collect the relevant data Make sure they are accurate Identify root causes Develop a solution that is

appropriate

Plan and Make ChangesPlan and Make Changes Look a head Anticipate needs What resources will be used to

satisfy them and Anticipate problems and consider

how they should be handled

Importance of Statistical Importance of Statistical ThinkingThinking

“Statistical thinking is critical to improvement of a system. Only by use of properly interpreted data can intelligent decisions be made”.

Improvement Can Be Improvement Can Be MeasuredMeasuredImprovement can be measured and

monitored by using performance indicators. Some of the examples are listed below:

Number of errors or defects Number of or level of need for repetitions of work

tasks Efficiency indicators Number of delays Duration of a given procedure or activity Response time or cycle Useability/cost ratio Amount of overtime required Changes in work load Vulnerability of the system Level of criticalness Level of standardization Number of unfinished documents

Identification of Identification of Improvement NeedsImprovement NeedsApply multi votingIdentify customer needsStudy the use of timeLocalize problems

Development of Development of improvement plansimprovement plans

Understand the processEliminate errorsRemove slackReduce variationPlan for continual improvement

Common improvement Common improvement strategiesstrategiesEstablish boundaries for the

processFlowchart the processMake a diagram of how the work

flowsVerify your workCorrect immediately any obvious

problems identified

Standardize the processStandardize the process• Identify the currently known best

practices and write them down• Test the best practices to determine

whether they are in fact the best, and improve them if there is room for improvement

• Make sure that everyone is using the newly standardized process

• Keep records of process performance, update them continually, and use to identify ways to improve the process even further on a continual basis

Eliminate errors in the process: Streamline the processReduce sources of variationBring the process under

statistical control

Improve the design of the Improve the design of the processprocess• Define the objectives of the

experiment• Decide which factors are going to be

measured• Design an experiment that will

measure the critical factors and the answers the relevant questions

• Set up the experiment• Conduct the experiment• Analyze the results• Act on the results

Total manufacturing Total manufacturing managementmanagement• Reduced lead time• Flow production• Group technology• Level production• Synchronized production• Overlapped/parallel production• Flexible schedules• Pull control

• Visual control• Stockless production• Jidoka• Reduced setup time• In-process control• Quality improvement• Total cost cycles• Cost curves

Mushroom conceptSuppliers as comakersTotal industrial engineering Total productive maintenance

Kaizen approachKaizen approach

Kaizen value systemRole of executive managementRole of middle managersRole of supervisorsRole of employeesKaizen and quality

Elements of kaizenElements of kaizenCustomer focusTeamworkJust-in-timeQuality circlesAutomationLabor/ management cooperationTotal productive maintenance

Kaizen Five-step planKaizen Five-step planStraighten up: involves separating

necessary from unnecessary Put things in order: tools and

materials in proper place and in order

Clean up: keeping clean to proceed in efficient manner

Personal cleanliness: employees being neat to appear better

Discipline: careful adherence to standardized work procedures.

The five W’s and One HThe five W’s and One H

WHOWHATWHERE

HOWWHENWHY

Five M checklistFive M checklist

MeasurementMethodsMaterialMachineMan

ActivityActivity

Goldratt’s Theory of Goldratt’s Theory of ConstraintsConstraintsAn approach to managing that helps

organizations continually improve.It is an intuitive (instinctive)

framework for managing organizations.

Starts with:◦1. clearly defined goals for the

organization.◦2. establishing measurements to

determine the impact of any action on those goals.

What Is So Different?What Is So Different?

Does not apply the traditional system for measuring results (profits)

Uses throughput, inventory, and operating expense.

What’s Different?What’s Different?It is based on the assumption

that every organization faces constraints.

Greatest negative impact on performance is policies as opposed to materials and resources.

Goldratt Defines RestraintGoldratt Defines Restraint

“anything that limits an organization from achieving higher performance vis-à-vis (in comparison with) its goal.

How Is It Applied?How Is It Applied?Identify: any factor that tends to

constrain.

Exploit: how can the factor be turned into positive factors, eliminated, or circumvented.

CEDAC ApproachCEDAC ApproachCEDAC = cause-and-effect with

additional cards.3 conditions must exist for continual

improvement to occur.◦A reliable system (standardized and

reliable)◦A favorable environment (favorable to

improvement)◦Practicing as teams (Total Quality is

performed by teams. Teams must practice)

CEDAC DiagramCEDAC Diagram

http://syque.com/improvement/Cause-Effect%20Diagram.htm

10-Step Process of 10-Step Process of ImplimentationImplimentationDraw Basic DiagramSelect the focus of improvement effortsName project leaderEstablish measurement methodEstablish improvement goal and dateFormat effect side of the diagramCollect fact cards for the cause side

(each team member fills out cards with their ideas)

Collect improvement cards Implement and test ideasSelect cards for standardization

Six Sigma ConceptSix Sigma Concepthttp://www.youtube.com/watch?v

=LNtEW4DVRkE&feature=relatedIntroduced by Motorola in the

mid-1980’sPurpose: to improve the

performance process to where defects rate was 3.4 per million or less.

Designed for high volume production settings.

Six Step ProtocolSix Step Protocol

1. Identify the product characteristics wanted by customers.

2. Classify the characteristics in terms of their criticality.

3. Determine is the classified characteristics are controlled by part and/or process.

ProtocolProtocol4. Determine the maximum

allowable tolerance for each classified characteristic.

5. Determine the process variation for each classified characteristic.

6. Change the design of the product, process, or both to achieve Six Sigma performance.

Six Sigma: The NameSix Sigma: The NameFrom the concept of standard

deviation signified by lowercase Greek letter sigma: σ

Processes and outputs typically measure in their standard deviations from the mean (ideal point).

What Does That Mean?What Does That Mean?Most good companies operate

between 3 and 4 sigma.Or: 99.73% of process output will

fall between± 3 standard deviation at 3 sigma or 99.9937% at 4 sigma.

3 sigma operation will yield 2700 defective parts for every 1 million produced.

Six Sigma and Total Six Sigma and Total QualityQualitySix Sigma is an extension of Total

Quality.Six Sigma is a total quality

strategy, like all others, to achieve: superior performance, that is continually improved, forever.

Six Sigma is achieved by improving process performance.

Lean OperationsLean OperationsLean=Lean Manufacturing=Lean

OperationsLean: originally a manufacturing

concept thus lean manufacturing.Lean Operations: because it is

found to produce good results in both manufacturing AND service sectors.

Purpose of AdoptingPurpose of AdoptingTo produce better products or

deliver better services using less resources.

Doing more with less and doing it better.

Defining LeanDefining Lean

Based on the Toyota Production System (TPS).

Lean Operation: a better product is developed or a better service is delivered by using less of everything required.

DefinitionDefinitionLean is: being flexible enough to

get the right things, to the right place, at the right time, in the right amounts.

The Heart: reduction of waste and the improvement of workflow.

Lean Focuses on WasteLean Focuses on WasteOverproduction WasteInventory WasteMotion WasteTransportation WasteOver-processing WasteDefects WasteWaiting WasteUnderutilization Waste

Tools and Techniques of Tools and Techniques of LeanLeanFive-S workplace organizationVisual workplace systemsLayoutStandardized work (SW)Point of usage storage (POUS)Batch size reductionQuick changeover(QCO)Poka-yoke

More Tools:More Tools:Self-inspectionAutonomationPull systems/kanbanCellular and flowJust-in-time (JIT)Total productive maintenance

(TPM)Value stream mapping (VSM)Change managementTeamwork

Lean Six SigmaLean Six SigmaCombining Lean and Six Sigma

Key Concepts:◦Green Belts◦Black Belts◦Master Black Belts◦Champions◦DMAIC Roadmap (or lean Six Sigma)

Where to Use?Where to Use? In Manufacturing: In Manufacturing: Especially effective for the

following types of continual improvement projects:◦Accuracy in invoicing◦Capacity of line and product◦Lead time on delivery◦Production◦Replenish downtime on equipment

and lines

Where to Use?Where to Use? In Service Sector: In Service Sector: Accuracy in invoicing, delivery,

and productCapacity of service area, call

center, and productLead time on delivery and call

hold timeDowntime on equipment,

servers, and lines

DMAIC RoadmapDMAIC RoadmapThe Nucleus of Six Sigma: Define,

Measure, Analyze, Improve, and Control.

Five Phases are constantSteps, tools and outputs of each

phase may vary somewhat.

DefineDefine1. initiate the project2. Define the process3. Determine Customer

requirements4. define key process output

variables

Possible tools: value stream maps, affinity diagrams, brainstorming, surveys

MeasureMeasure1. Understand the process2. Evaluate risks on process inputs3. Develop and evaluate

measurements systems4. measure current performanceResults: Knowing your starting

point, verification of measurement systems, current capabilities

AnalyzeAnalyze1. Analyze data to prioritize key

input variables2. Identify wasteResults: root causes reduced.

Prioritize potential key inputs, and list specific wastes.

Tools: Five-S (sort, store, shine, standardize, & sustain)

ImproveImprove1. verify critical outputs2. Design Improvements3. Pilot the new processResults: an action plan for

improvement, future state process maps, control maps, new process design/documentation

ControlControl1. Finalize the control system2. Verify long-term capabilityResults: a control system,

improvement validated for long term, identified continual improvement opportunities, team recognition

BibliographyBibliographyAll information obtained from:

Goetsch, D.L., Davis, S.B. Quality Management for organizational excellence: introduction to total quality. 2006. 5th edition

Why Do We Ned Six Why Do We Ned Six Sigma?Sigma?

Interview:

http://www.youtube.com/watch?v=7rUQbTsc_ms