Lean Six Sigma Chapter LeanSixSigma:ProcessImprovementToolsandTechniques DonnaC.Summers â2011PearsonHigherEducation, UpperSaddleRiver,NJ07458.ãAllRightsReserved Lean Six Sigma • “The longer an article is in the process of manufacture and the more it is moved about, the greater the ultimate cost.” • Henry Ford Lean Six Sigma: Process Improvement Tools and Techniques DonnaC.Summers â2011PearsonHigherEducation, UpperSaddleRiver,NJ07458.ãAllRightsReserved Lean Six Sigma ã Lean tools and techniques are used to standardize work and remove waste and non value-added activities • Six Sigma tools and techniques are used to attack the variation present in processes Lean Six Sigma: Process Improvement Tools and Techniques DonnaC.Summers â2011PearsonHigherEducation, UpperSaddleRiver,NJ07458.ãAllRightsReserved Lean Six Sigma ã Lean Benefits: – – – – – – – – Reduced cycle times Lower handling costs Faster lead times Decreased floor space usage Lower inventory with greater inventory turns Improved customer responsiveness and service improved quality Higher profit margins Lean Six Sigma: Process Improvement Tools and Techniques Donna C. Summers © 2011 Pearson Higher Education, Upper Saddle River, NJ 07458. • All Rights Reserved Lean Six Sigma • Lean thinking is a mindset best described as a relentless war on waste Lean Six Sigma: Process Improvement Tools and Techniques DonnaC.Summers â2011PearsonHigherEducation, UpperSaddleRiver,NJ07458.ãAllRightsReserved Lean Methodology ã Lean seeks to eliminate seven sources of waste: – Overproduction – Idle time waste (waiting time/queue time) – Delivery waste (transport/conveyance waste) – Waste in the work itself – Inventory waste – Wasted operator motions – Waste of rejected parts Lean Six Sigma: Process Improvement Tools and Techniques Donna C. Summers © 2011 Pearson Higher Education, Upper Saddle River, NJ 07458. • All Rights Reserved Lean Methodology • Lean thinking generates process improvement by following five key steps: – Study the process by directly observing the work activities, their connections and flow – Study the process to systematically eliminate wasteful activities, their connections and flow LeanSixSigma:ProcessImprovementToolsandTechniques DonnaC.Summers â2011PearsonHigherEducation, UpperSaddleRiver,NJ07458.ãAllRightsReserved Lean Methodology • Lean thinking generates process improvement by following five key steps: – Establish agreement among those affected by the process in terms of what the process needs to accomplish and how the process will accomplish it – Attack and solve problems using a systematic method – Integrate the above approach throughout the organization Lean Six Sigma: Process Improvement Tools and Techniques Donna C. Summers © 2011 Pearson Higher Education, Upper Saddle River, NJ 07458. • All Rights Reserved Lean Methodology • Lean tools include: – Kaizen – Value stream process mapping –5 S – Kanban Lean Six Sigma: Process Improvement Tools and Techniques DonnaC.Summers â2011PearsonHigherEducation, UpperSaddleRiver,NJ07458.ãAllRightsReserved Lean Methodology ã Lean tools include: – Error proofing – Preventive and predictive maintenance – Setup time reduction Reduced lot sizes LeanSixSigma:ProcessImprovementToolsandTechniques DonnaC.Summers â2011PearsonHigherEducation, UpperSaddleRiver,NJ07458.ãAllRightsReserved Six Sigma • Six Sigma is data driven and profit focused LeanSixSigma:ProcessImprovementToolsandTechniques DonnaC.Summers â2011PearsonHigherEducation, UpperSaddleRiver,NJ07458.ãAllRightsReserved Six Sigma ã The goal of Six Sigma is to reach 3.4 defects per million opportunities over the long term Lean Six Sigma: Process Improvement Tools and Techniques Donna C. Summers © 2011 Pearson Higher Education, Upper Saddle River, NJ 07458. • All Rights Reserved Six Sigma • Six Sigma seeks to reduce the variability present in processes LeanSixSigma:ProcessImprovementToolsandTechniques DonnaC.Summers â2011PearsonHigherEducation, UpperSaddleRiver,NJ07458.ãAllRightsReserved Six Sigma Sigma Defects per million opportunities Yield 690,000 30.90% 308,000 69.20% 66,800 93.30% 6,210 99.40% 320 99.98% 3.4 99.9997% LeanSixSigma:ProcessImprovementToolsandTechniques DonnaC.Summers â2011PearsonHigherEducation, UpperSaddleRiver,NJ07458.ãAllRightsReserved Six Sigma • An improvement of just sigma can result in a ten-fold reduction in the number of defects – At three sigma, 66,800 defects per million costing $10/piece to fix = $668,000 – At four sigma, 6,210 defects per million costing $10/piece to fix = $62,100 Lean Six Sigma: Process Improvement Tools and Techniques DonnaC.Summers â2011PearsonHigherEducation, UpperSaddleRiver,NJ07458.ãAllRightsReserved Six Sigma Projects ã Six Sigma projects are selected based on their ability to contribute to and enhance an organizations financial performance LeanSixSigma:ProcessImprovementToolsandTechniques DonnaC.Summers â2011PearsonHigherEducation, UpperSaddleRiver,NJ07458.ãAllRightsReserved Six Sigma Projects • Six Sigma projects seek out sources of waste (overtime, warranty claims, production backlogs, customer issues) LeanSixSigma:ProcessImprovementToolsandTechniques DonnaC.Summers â2011PearsonHigherEducation, UpperSaddleRiver,NJ07458.ãAllRightsReserved Six Sigma Projects ã Six Sigma projects have five phases: – Define – Measure – Analyze – Improve – Control Lean Six Sigma: Process Improvement Tools and Techniques Donna C. Summers (note similarity to PDSA) â2011PearsonHigherEducation, UpperSaddleRiver,NJ07458.ãAllRightsReserved Six Sigma Participants ã Six Sigma Project Participants – Green Belts • training • complete a cost-savings project ($10,000+) – Black Belts • training (more advanced) • complete cost-savings projects ($100,000+) – Master Black Belts • extensive training ã complete cost-savings projects ($1,000,000+) LeanSixSigma:ProcessImprovementToolsandTechniques DonnaC.Summers â2011PearsonHigherEducation, Upper Saddle River, NJ 07458. • All Rights Reserved Six Sigma • Category • Leadership Management and Leadership in Enterprise-Wide Quality Engineering Deployment Business Not covered Business Process Processes Processes Management Quality Quality Systems Development, Not Covered Systems Implementation, and Verification Quality Planning, Controlling, and Assuring Not Covered Assurance Product and Process Quality Reliability Reliability and Risk Management Not Covered Problem- Problem-Solving and Quality Improvement Define-MeasureSolving Analyze-Improve-Control Quality Tools Problem-Solving and Quality Improvement DMAIC Project Not Covered Project Management Management Team Not Covered Team Leadership Concepts Statistical Probability and Statistics Probability and Methods Collecting and Summarizing Data Statistics Collecting and Summarizing Data Design of Designing Experiments Design of Experiments Experiments Process Analyzing Process Capability Analyzing Process Capability Capability Statistical Statistical Process Control Statistical Process Control Process Control Measurement Measurement Systems Measurement Systems Systems Metrology Metrology (metrology/calibration) Lean Not Covered Lean Enterprise Manufacturing Other Techniques FMEA, FMECA, FT FMEA, QFD Multi-Variate Studies • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • ASQ Certified Quality Engineer (CQE) Black Belt Body of Knowledge Comparison of CQE and Black Belt Certification LeanSixSigma:ProcessImprovementToolsandTechniques DonnaC.Summers â2011PearsonHigherEducation, UpperSaddleRiver,NJ07458.ãAllRightsReserved Six Sigma ã Six Sigma Acronyms • • • • • • DPMO DPU FMEA KPIV KPOV Process Owners • • Reliability Quality • • • • APQP CTQ DFSS DMAIC Lean Six Sigma: Process Improvement Tools and Techniques Donna C. Summers Advanced Product Quality Planning Critical to Quality Design for Six Sigma Define, measure, analyze, improve, control Defects per million opportunities Defect per unit Failure Modes and Effects Analysis Key process input variable Key process output variable The individual responsible for the process and what it produces measured as mean-time-to-failure measured as process variability and defect rates â2011PearsonHigherEducation, UpperSaddleRiver,NJ07458.ãAllRightsReserved Six Sigma Methodology • In order to successfully adopt the Six Sigma methodology, an organization must have: – – – – – – – Visible management commitment Visible management involvement Clear definition of customer requirements Understanding of key business processes Sound measures of performance Discipline Rewards LeanSixSigma:ProcessImprovementToolsandTechniques DonnaC.Summers â2011PearsonHigherEducation, UpperSaddleRiver,NJ07458.ãAllRightsReserved Six Sigma • A point to consider: – Six Sigma focuses on defects while other quality improvement methodologies emphasize non-conformances • A subtle, yet important distinction, especially in the legal sense LeanSixSigma:ProcessImprovementToolsandTechniques DonnaC.Summers â2011PearsonHigherEducation, UpperSaddleRiver,NJ07458.ãAllRightsReserved Six Sigma ã Another point to consider: – When the organization say no more improvement is possible • Remember Six Sigma has a two pronged approach: – Fix the existing problems – Design Six Sigma into processes, products and services LeanSixSigma:ProcessImprovementToolsandTechniques DonnaC.Summers â2011PearsonHigherEducation, UpperSaddleRiver,NJ07458.ãAllRightsReserved Lean Six Sigma • Lean Six Sigma is about results – Enhancing profitability through elimination of waste and reduced variability LeanSixSigma:ProcessImprovementToolsandTechniques DonnaC.Summers â2011PearsonHigherEducation, UpperSaddleRiver,NJ07458.ãAllRightsReserved ... and remove waste and non value-added activities • Six Sigma tools and techniques are used to attack the variation present in processes Lean? ?Six? ?Sigma:? ?Process? ?Improvement? ?Tools? ?and? ?Techniques Donna C. Summers... LeanSixSigma:ProcessImprovementToolsandTechniques DonnaC.Summers â2011PearsonHigherEducation, UpperSaddleRiver,NJ07458.ãAllRightsReserved Lean Methodology ã Lean thinking generates process improvement. .. Upper Saddle River, NJ 07458. • All Rights Reserved Lean Methodology • Lean tools include: – Line-balancing – Schedule leveling – Standardized work – Visual Management Lean? ?Six? ?Sigma:? ?Process? ?Improvement? ?Tools? ?and? ?Techniques DonnaC.Summers