Introduction To Lean Six Sigma

Sept 2006
Objectives
Expand your process improvement and problem solving
toolkit
Learn new tools & methodologiesValue Stream
Mapping, Visual Management, Theory of Constraints etc.
Increase your effectiveness as a MBB/BB
This is an OVERVIEW
Do not try to use these tools without HELP
contact your MBB
Additional training will be provided for some
of these tools in the future
Chapter 1
Lean Six Sigma Overview
Benefits of Lean Six Sigma
Methodical approach to elimination of WASTE!
Time
After
Before
Value Added Work
After
Before
Non Value Added Work
Time
Lean attacks the waste here!
Benefits of eliminating WASTE:
Better quality
Faster delivery
Increased capacity
Reduced cycles
Increased productivity
Increased customer satisfaction
Types of Non-Value-added work
Internal Failure
External Failure
Control / Inspection
Delay
Preparation / Set-up
Move
Six Sigma View of Non-Value Added Work (Waste)
Reevaluate
Recall
Redesign
Retest
Retype
Redo
Repeat
Reissue
Reject
Rework
Remake
Recheck
Revise
Return
Remeasure
Reship
Product Flow Knowledge Flow
Overproduction Subassemblies between feeders & main lines Unneeded reports; unnecessary approvals
Inventory Material between operations, safety stock, etc Policies in process; help desk tickets
Extra Processing Planned/unplanned rework, handwork Duplication; multiple screens or ways
Motion Operator movement, machine cutting air Looking for data/info; handing off customers
Defects Poor quality of material, missing dates Data errors; missing customer data
Waiting Operators, machines, customers Forapprovals; IT system; decisions
Transportation Conveyance of any material, tooling Walking to distant locations; mail
Lean Supplements To Defining Waste
Lean Tools (VSM, Takt Time, 5S, Cells) are all designed
to methodically eliminate Waste!
VA Waste
Waste
TYPICAL
COMPANY
TRADITIONAL
PROCESS
IMPROVEMENT
ORIGINAL
CYCLE TIME
LEAN 6 SIGMA
WASTE
REDUCTION
Waste
TIME
Comparative Results of Focusing On Waste
Application Typical Cycle Efficiency
World-Class Cycle
Efficiency
Continuous
Manufacturing
Business
Processes
(Service)
Business Processes
(Creative/Cognitive)
5%
10%
5%
50%
25%
30%
Lean Six Sigma for Services, Michael George
VA
VA
Advantages of Lean Six Sigma
Easy to learn intuitive and simple tools
Tools are more effective at attacking cycle time issues
Action oriented try storming versus analysis paralysis
Tools are ideal for achieving small quick wins
Limitations of Using Lean Alone
Incapable of achieving high sigma levels
Less reliance on data
Little or no statistical validation of Improve ideas
No focus on adverse effects of variation
Not used to design a process requiring capabilities above
3 Sigma (SOX based processes)
No specific tools to bring an operation under statistical
process control (Minitab is not used in Lean)
Lacks a DMAIC approach/structure
Less rigorous in identifying CCRs
No prescribed infrastructure to achieve & sustain results
Target
USL LSL
Entitlement
2-3s
3-6s
6+s
Lean
6s - DMAIC
6s - DFSS
Obvious to fix
Process improvements which have
known solutions
Logical changes requiring little/if
any analysis
Easy to fix
Process improvements using basic
DMAIC tools
New or redesign
process using
DFSS methodology
Process improvements requiring
more sophisticated DMAIC tools
(e.g. DOE & Simulation techniques)
Reaching 6s Capability
OVERALL YIELD vs SIGMA
(Distribution Shifted 1.5s)
# of Parts
(Steps)
3s 4s 5s
6s
1
7
10
20
40
60
80
100
150
200
300
400
500
600
700
800
900
1000
1200
3000
17000
38000
70000
150000
93.32%
61.63
50.08
25.08
6.29
1.58
0.40
0.10
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
99.379%
95.733
93.96
88.29
77.94
68.81
60.75
53.64
39.38
28.77
15.43
8.28
4.44
2.38
1.28
0.69
0.37
0.20
0.06
- - -
- - -
- - -
99.9767%
99.839
99.768
99.536
99.074
98.614
98.156
97.70
96.61
95.45
93.26
91.11
89.02
86.97
84.97
83.02
81.11
79.24
75.88
50.15
1.91
0.01
99.99966%
99.9976
99.9966
99.9932
99.9864
99.9796
99.9728
99.966
99.949
99.932
99.898
99.864
99.830
99.796
99.762
99.729
99.695
99.661
99.593
98.985
94.384
87.880
78.820
60.000
Lean & 6s Synergy
6 Sigma improves quality of value-add steps
L
e
a
n

r
e
d
u
c
e
s

n
o
n
-
v
a
l
u
e

a
d
d

s
t
e
p
s

Achieving higher sigma levels is faster when Lean tools are combined with
Six Sigma reduce steps then reduce variation in the remaining steps
Theory of Constraints (TOC)
TOC principles synergistic with Lean
Focus on systems vice processes
Systems performance is dependent on its
weakest sub-process or link
TOC Improvement Cycle
1. Identify the constraint which link is the weakest
2. Exploit the constraint improve the process within the constraint
3. Subordinate all other resources to the constraint adjust adjacent
processes to limit impact of the constraint
4. Elevate the constraint break it only after applying steps 2 & 3
5. Go back to step 1, focusing on the new constraint