LEAN SIX SIGMAFOR PROCESS IMPROVEMENT AND PROJECT DELIVERY

University of Sydney

Pem Zhipeng Xie

• Introduction of Lean Six Sigma

• The Benefits and Drawbacks

• Application in Industry

• Case Study

• Conclusion

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CONTENT

CONTENT

• Introduction of Lean Six Sigma

• The Benefits and Drawbacks

• Application in Industry

• Case Study

• Conclusion

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Philosophy, Tools (control charts), Methodology, Metrics

(From ASQ, PPT)Approach, Methodology

Certifications: Black Belt, Green Belt, Master Black, Yellow Belt, White Belt, Lean & DFSS for different

project level(From 6Sigma)

 

Tools: DMAIC, DMADV, the 5S Philosophy, Kaizen

Tools: Just in Time, Kanban, Zero Defects, SMART Goals,

the 5S Philosophy, Kaizen (From MindTools, LeanProduction)

Variation reduction Waste reduction

1. Introduction of Lean Six Sigma

Six Sigma Lean

A method that develops a set of techniques and used to reduce defects and improve the capability of business process in organizations.

(From ASQ, INVESTOPEDIA, BQF and so on)

An approach that removes unnecessary and wasteful steps to improve efficiencies and deliver value to customers in streamline manufacturing and production processes.

(From Villanova university, Goleansisigma, MindTools and so on)

1. Introduction of Lean Six Sigma

(From: goleansixsigma.com)

• Introduction of Lean Six Sigma

• The Benefits and Drawbacks

• Application in Industry

• Case Study

• Conclusion

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CONTENT

BENEFITS DRAWBACKS

Process Improvement

1. Not fully mature into a specific area of academic research as an approach to process improvement

2. Cause a conflict of interest and a drain on resources

3. No theoretical underpinning or explanation for the choice of techniques

4. No standard framework for lean Six Sigma5. With the framework presented, there is no

clear direction as to which strategy should be selected at the specific stages of a project.

1. Process and data driven 2. Results-oriented approach3. Improve performance, streamline procedures,

reduce defects and increase staff productivity4. Assure and improve quality5. Improve linkages between system components6. Improve capacity utilisation7. Improve responsiveness and speed in the

process of project8. Identify non value added activities9. Shorter customer fulfilment lead times and

lower costs10.Maximize invested capital, enhance customer

loyalty and retention

Project Delivery1. More discrete and measurable deliverables2. Tools for each cycle

2. Benefits and Drawbacks of Lean Six Sigma

• Introduction of Lean Six Sigma

• The Benefits and Drawbacks

• Application in Industry

• Case Study

• Conclusion

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CONTENT

Automotive, Biotechnology, Chemical, Defense, Education, Electronics, Food, Government, Heavy Equipment,

Hospitality, Logistics, Mining, Professional Services, Retail, Telecommunications, Transportation and Travel,

Water, Energy and Utility, Healthcare and Medical, Financial Services, and Manufacturing.

Industries Apply

Healthcare

• Diminish the time on paperwork and waiting lists• Increase the working efficiency and the time with patients

Financial Services

• Boost the yield capacity by improving the processes• Gain the income by raising the customer satisfaction and serving

more clients

Manufacturing

• Boost the manufacturing operations and productivity• Enhance the cost saving by decreasing energy usage, equipment

downtime and reject ratio

3. Application in Industry

CONTENT

• Introduction of Lean Six Sigma

• The Benefits and Drawbacks

• Application in Industry

• Case Study

• Conclusion

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• Achieve enhanced customer satisfaction • Increase internal financial benefits

COMPANY• Manufactures foam for the seat bases and chair backs • In automotive and aerospace industries.

Foam Product

4. Case Study

GOAL

(6) Implement 5S technique.

(7) Value stream mapping (VSM).

(8) Redesign to remove waste and improve value stream.

(9) Redesign manufacturing system to achieve single unit flow.

(10) Apply total productive maintenance.

Six Sigma Lean(1) Define

(2) Measure

(3) Analyse

(4) Improve

(5) Control

PHASES

(Thomas, Barton& Chuke-Okafor, 2008).

PHASE PURPOSES PROCESS RESULTP1:

DEFINEIdentify the issue or problem

• Pareto analysis• DOE approach

Low-foam firmness was identified:• Standard: deflection of the foam:10 mm (+1-0 mm).• Reality: deflection of the foam:12 mm

P2: MEASURE

Designing the strategy and test process for detecting the defect to confirm the issue

• Testing ten samples randomly through the production line at premises

• Six out of ten samples were detected with fault• Therefore, the issue was confirmed.

P3: ANALYSE

Figure out the root causes for the issue

• Brainstorming exercise• Fishbone• Root cause analysis

• All the possible factors within the production line were tested.

• Five key factors were identified and concluded.

P4: IMPROVE

Remove the causes of the defect in order to keep the quality level

• A Taguchi DOE experiment • ANOVA

• - Analysis of variance• - Control factors • - Interactions

• The optimum settings of parameter, 2, 2, 1, 1, 2, were concluded by experiments relating to the five key factors.

P5: CONTROL

Keep the quality level• Validate the optimum

settings of parameter.• SPC chart

• No defect was detected and recorded.

(Thomas, Barton& Chuke-Okafor, 2008).

NAME PURPOSES PROCESS RESULT

P6: 5S

IMPLEMENTATION

Improve production flow and work practices,

Preparation for the visualization and assessment in the process

of VSM

• Implementing 5S process: Sort, set in order (straighten), shine,

standardize, sustain

• All the working methods within the plant had been cleaned and standardized.

P7: VALUE STREAM MAPPING VSM

Find out possible flow improvement and waste

reduction within the current production system

Standard process flow chart approach of value stream mapping

• Accessing times of each operation/function • Placing them in a chart

• Non-value added activities were identified

• The problem of major systems reconfiguration is identified

P8: SYSTEMS

REDESIGN TO REDUCE WASTE

Reduce waste

• Start a cost reduction projects• Preset the machinery using the new

parameter settings from the six sigma project.

• Setting up time and reject foam on start-up within the machinery were reduced.

• Energy consumption was lower.

P9:SYSTEMS

REDESIGN TO ACHIEVE SUF

Achieve SUF (single unit flow)

Reconfiguration of the plant • Moving the trimming section• Link up between the two foam

manufacturing machines in order• Synchronizing installation conveyor

systems

• The production process was smoothed and the operation time was reduced.

P10:APPLICATION OF

TPM

Maintain the machinery and equipment to support the

production system.

• Implementing TPM program• Adopting OEE system  as a measure of

plant performance

• Cost-saving:• The management the entire

business process of the company was improved

(Thomas, Barton& Chuke-Okafor, 2008).

Solved the problem of Low-Foam firmness in production line

• Identified and confirmed the issue• Found out the main factors and the root causes• Remove the root causes and solved the problem• Maintained the improved process

Improved and optimized the whole process within the plant• Standardized the working mothed• Identified and removed waste in the workflow• Optimized the process • Energy saving, time saving and cost saving

4. Case Study

• Introduction of Lean Six Sigma

• The Benefits and Drawbacks

• Application in Industry

• Case Study

• Conclusion

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CONTENT

• Lean Six Sigma is an integrated approach of Lean and Six Sigma.

• It can be applied to numerous industries, especially, the healthcare, financial services and manufacturing.

• The restrictions of the approach should be considered seriously before applications.

• The significant improvements mostly demonstrate by the product quality and delivery.

• A application provides the organization with the culture of systematic approach and the more technical attitude toward the problem-solving.

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5. Conclusion

Reference

• ASQ (2016). Six Sigma Belts, Executives and Champions – What Does It All Mean?. Retrieved August 15, 2016, from http://asq.org/learn-about-quality/six-sigma/overview/belts-executives-champions.html

• Chiarini, A., & Bracci, E. (2013). Implementing lean six sigma in healthcare: Issues from italy. Public Money & Management, 33(5), 361.

• Delgado, C., Ferreira, M., & Castelo Branco, M. (2010). The implementation of lean six sigma in financial services organizations. Journal of Manufacturing Technology Management, 21(4), 512-523. doi:10.1108/17410381011046616

• Goleansixsigma (2015). What is Six Sigma?. Retrieved August 15, 2016, from https://goleansixsigma.com/what-is-lean-six-sigma/

• MoreSteam (2016). New TO lean Six Sigma. Retrieved August 15, 2016, from https://www.moresteam.com/new-to-lean-six-sigma.cfm

• Thomas, A., Barton, R., & Chuke-Okafor, C. (2008;2009;). Applying lean six sigma in a small engineering company - a model for change. Journal of Manufacturing Technology Management, 20(1), 113-129. doi:10.1108/17410380910925433

THANKS

LEAN SIX SIGMAFOR PROCESS IMPROVEMENT AND PROJECT DELIVERY

GROUP 11