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Lean Six Sigma Overview Presented by Ron Drew, PMP

RDrew Six Sigma Overview

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Page 1: RDrew Six Sigma Overview

Lean Six SigmaOverview

Presented by Ron Drew, PMP

Presented by Ron Drew, PMP

Page 2: RDrew Six Sigma Overview

W. Edwards Deming

“Eighty-Five percent of the reasons for failure to meet customer expectations are related to deficiencies in the Systems and Processes rather than employees.

The role of leadership is to change the process rather than badger individuals to do it better.”

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Industry Snippets

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What is Six Sigma

What gets measured gets improved!

Six Sigma is a business strategy• To remove variation in the processes• To improve the processes to:

• Raise Quality• Lower Costs• Make Customers More Satisfied

Six Sigma is a philosophy and mindset• It is Data-driven decision making• It is a Common Vocabulary

Six Sigma is a Statistical Measurement• Works on a statistical scale of Defects per Million (DPM)• It tells how good the products and services really are by designating the distribution about the average of any process or procedure

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What is Six Sigma

Sigma Level Defects per Million (DPM) Effort to Improve 1 Sigma

One 691,462 2x

Two 308,538 4x

Three 66,807 10x

Four 6,210 27x

Five 233 116x

Six 2

Six Sigma Numbers

Most processes and companies operate at Three(3) capability

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What is Six Sigma

Two Methodologies:

DMAIC – Defect reduction within an existing product or process.

DMADV – When a product or process is first being designed.

Define Measure Analyze Improve Control

Define Measure Analyze Design Validate

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What is Six Sigma

DMAIC Overview

Define1. Project Charter2. Identify and validate customers’ needs and requirements3. Create a high level picture of the process targeted for improvement

Measure1. Create a data collection plan2. Implement plan and return with a baseline performance sigma

Analyze1. Examine the data2. Watch the process3. Determine root cause

Improve1. Generate Solutions2. Select Solutions3. Implement Solutions

Control1. Pick the right control method2. Document the response plan

50% of EVERY project should be spent in DM&A

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What is Six Sigma

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Define Phase of Lean Six Sigma

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Define Phase of Lean Six Sigma

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Define Phase of Lean Six Sigma

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Measure Phase of Lean Six Sigma

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Measure Phase of Lean Six Sigma

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Measure Phase of Lean Six Sigma

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Measure Phase of Lean Six Sigma

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Lean Six Sigma Analyze Phase

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Lean Six Sigma Analyze Phase

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Lean Six Sigma Analyze Phase

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Lean Six Sigma Analyze Phase

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Lean Six Sigma Improve Phase

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Lean Six Sigma Improve Phase

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Lean Six Sigma Improve Phase

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Lean Six Sigma Improve Phase

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Lean Six Sigma Control Phase

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Lean Six Sigma Control Phase

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What is Six Sigma

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Taiichi Ohno

“All we are doing is looking at a timeline from the moment the customer gives us an order to the point when we collect the cash.

And we are reducing that timeline by removing the non-value added wastes.”

Lean is the continuous focus on eliminating waste driven by customer satisfaction.

What is Lean?

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Lean – Cycle Time (Kanban)

Lean is used to analyze and attack the lack of coordination, flow and waste

What is Lean?

Work/Value Add Time

Work/Non-Value Add Time

Work/Value Add Time

Work/Non-Value Add Time

Work/Value Add Time

Work/Non-Value Add Time

Work/Value Add Time

Work/Non-Value Add Time

Work/Value Add Time

Work/Non-Value Add Time

Work/Value Add Time

NVAT

Work/Value Add Time

Work/Value Add Time

Work/Value Add Time

Work/Value Add Time

NVAT

NVAT

NVAT

Before

After

Lean Principle: Spend resources to improve Kanban (Cycle Time)

Lead Time/Cycle Time

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Five Principles of Lean

Specify Value Specify value from the standpoint of the end customer

Map the Value Stream Map all of the steps both value added & non-value added that

bring a product/service to the customer

Establish Flow Specify value from the standpoint of the end customer

Implement Pull Nothing is done by the upstream process until the

downstream customer signals the need

Pursue Perfection The complete elimination of waste so all activities create value for

the customer

What is Lean?

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Specify Value

Value Added Process: Anything the customer is willing to PAY FOR

Three criteria MUST be met: Changes the shape or form of the process/product The customer cares about it It is done right the first time

Non-Value Added Process: Those process steps that take time, resources, or space but do

not add value to the product/service

Corporate compliance in included here, as a necessary, but non-value added step

Other examples: quality assurance and any “re” steps

What is Lean?

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Map the Value Stream

Map all of the actions both value added and non-value added that are required to bring a product or service BACKWARDS from the customer to process initiation.

Elements Examines the product/document flow and information flow

Examines non-value added and wait time

Current State (AS-IS) and Future State (TO-BE) are developed using a standard unit of time

Site plans are developed to identity “Kaizen” (action workout) improvement opportunities

What is Lean?

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Value Stream vs. Process Map

Process Mapping illustrates the steps in a process

Value Stream Mapping also tracks Material flow and material resource planning

Information flow (who needs to be notified)

Time Value Added Time materially changing the product/service Non-Value Added Time

Change-Over Time Wait Time Moving Time

What is Lean?

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Establish Flow

What is Lean?

Producing one transaction at a time with each item passed immediately from one process step to the other without waiting.

Elements The work does not stop – make one, move one (identity and remove

the bottlenecks)

No inventory is created – no batching (inventory is a sign of bottlenecks)

Move away from departmental or functional processing of transactions – empower employees to make decisions

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Implement Pull

What is Lean?

Pull systems are used to maintain level operations.

Some processes cannot be operated as a flow: Long distances between processes (look for co-location

opportunities or ways to reduce batch size)

Unreliable processes (look for error-proofing opportunities)

Long change-over-times

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1. Root Cause Analysis using the 6 Ms

2. 7 Types of Waster (Muda)

3. 5 “S” Organization

4. Action Work-out (Kaizen)

5. Error Proofing (Poke-yoke)

Lean Tools

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Root Cause Analysis

Lean Tools

The 6 Ms can help you define the WHY. The areas of variation and waste in your processes.

1. Machine

2. Methods

3. Materials

4. Measurement

5. Man (now sometimes called P for Person “5 Ms and a P”

6. Mother Nature

Brainstorm RCA with EVERYONE involved in the process!

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7 Types of Waste (Muda)

Lean Tools

1. Extra Processing – Waste in the form of non-value adding activities performed in the process.

1. Example: revise, re-design, re-work, re-tool

2. Waiting – Time spent in the process waiting for another step to complete or a decision to be made.

3. Motion – Physical human motion that does not add value to the process. 1. Example: moving parts/documents from one location to another.

4. Over-Production – Creating parts ahead of time, due to mismatch in production schedules. Producing more than the customer needs.

5. Inventory – Holding additional materials on shelves, racks and floors

6. Transportation – Unnecessary movement of parts, equipment. Transmitting unnecessary email and data.

7. Defects – Defective work or excessive inspection.

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Lean Tools

5 “S” - Organization

Sustain!!

Store Sort / Straighten Shine Standardize

Distinguish:

Between what is needed and what is not.

“When in doubt, move it out”

Organize:

(Arrange and label) remaining needed items to maximize efficiency.

Three phases:

1. Daily cleanliness2. Cleanliness Inspections3. Cleanliness

Maintenance

1. Develop and implement best practices.

2. Visual Workspace3. Visual Standards

Key Questions:

1. What is it for?2. Why do I have it?3. How often do I use it?4. Does someone else have the

same thing?

Arrange items to be:

1. Easy to find – visual controls2. Easy to use – immediate

retrieval3. Easy to return – immediate

return

Keys:

1. Must be done on a regular basis

2. Cleaning tools & supplies available at point of usage

3. Assign specific individuals to tasks

4. Designate specific cleaning time

Keys:

1. Assign ownership2. Use checklists3. Color code

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Action Work-Out (Kaizen)

Lean Tools

1. Why? – It brings stakeholders together to see the “Big Picture” end-to-end process.

2. Who? – 30% Management – they can make it happen 30% Subject Matter Experts (SME) – they know how it is done 30% Personnel outside the process – they ask why is it done that way? 10% Black Belts – for Facilitators and Scribes

3. What? – Map and document current (as-is) and future (to-be) state process Identify Value Stream to Customer Define relationships among key process points Remove bottlenecks

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Error Proofing

Lean Tools

Poke-yoke definition:The removal of all potential causes of error through design, process

or mistake-proofing devices to ensure consistent process results.

Attitude:• I do not ACCEPT defects• I do not MAKE defects• I do not PASS ON defects

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Recap ..What is Lean Six Sigma

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Why is Lean Six Sigma so Successful?

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When Do We Use Lean/Six Sigma?

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Why Do Companies Fail?

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Perspectives of Lean Six Sigma

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Perspectives of Lean Six Sigma

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Perspectives of Lean Six Sigma

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Perspectives of Lean Six Sigma

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Lean Six Sigma Practice

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Lean Six Sigma Training

Lean.org

Certification:

1. Training: www.villanovau.com (16 weeks)

2. Exam: American Society for Quality – asq.org

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Thank You for Your Attention

[email protected]