Slides 10 2 apply DMAIC (define, measure, analyze, improve,

Terminal Learning Objectivehandouts, readings, and spreadsheet tools and awareness of Operational Environment OE/Contemporary Operational Environment COE variables and actors – Describe

Department of Defense

Lean Six Sigma

Executive level overview

Lean

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Lean

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There must be a better way!

Terminal Learning Objective

handouts, readings, and spreadsheet tools and awareness of Operational

Environment (OE)/Contemporary Operational Environment (COE) variables and actors

– Describe the foundation of Lean and Six Sigma

– Define the underlying theory of Six Sigma

– Describe the principles of Lean Six Sigma

– Explain the concepts of DMAIC

Lean Six Sigma overview

• Why Lean Six Sigma

• Principles and Tools

• Deputy Chief of Staff Army G-1

www.armyg1.army.mil/leansixsigma/whatislss.asp

• Performance Excellence… A Lean Six Sigma World-Class Methodology

• Where to Start…Voice of the Customer

Lean

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Lean

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Foundation to Lean 6 Sigma

• "To measure is to know.“

• "If you can not measure it, you can not improve it.“

• "…I often say that when you can measure what you are speaking about, and express it in

numbers, you know something about it; but when you cannot measure it, when you cannot express it in numbers, your knowledge is of a meager and unsatisfactory kind ”

Right Training Right Attitude

• Lean Six Sigma is not rocket science…you can do this

• Lean Six Sigma is not “easy”…it requires dedication and effort

• Lean Six Sigma is not the next program…it is a way of thinking…an approach to every task performed, that asks the question…“does this add value?”

Lean

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Lean

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What is Lean?

• Identifying improvement opportunities in processes

• Utilizes scientific problem solving methods

• Focus on reducing non-value added steps in a process

• Analyzing and improving process flows

Value-Added Activities Lean

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Lean

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The Lean Ladder Lean

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Lean

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Eight Types of Waste

or Service as perceived by the Customer, but Increases Cost and Cycle times.

Learning Check

• Why should Lean be considered?

• What are Value added Activities?

• What are some of the types of waste?

Lean

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Lean

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What Is Sigma σ? Lean

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Lean

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What is Six Sigma?

• A Philosophy for Quality Improvement

• Uses a structured approach to problem solving

• Utilizes Scientific Problem Solving Methods

• A Statistical Measure of Variability

• When Achieved, Reduces Defects in an Operation or Process to 3.4 Defects per Million

Opportunities DPMO

• A Way to Achieve Significant Savings

• Breakthrough Improvements in Performance

• 6 σ is about making money

Lean

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Lean

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Why Use Sigma As a Metric? Lean

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Lean

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Six Sigma Defined

Six Sigma:

• Is a systematic methodology utilizing effective data analysis tools and techniques to improve performance

by eliminating / preventing defects and inefficiencies’ in processes, to meet and exceed customer needs.

• Derives from a 99.99966% error free quality level OR less than 3.4 errors per million opportunities

Lean

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Lean

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Learning Check

• What is Sigma σ?

• What is Six Sigma?

• Why use Sigma as a metric?

Integrating Lean and Six Sigma

• Natural evolution

• Applies the right tools to a project

• Leverages tools and methodologies to maximize process improvements

• Reducing waste and variability go hand in hand in process improvement

Lean

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Lean

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What Lean Six Sigma is not

• A complicated way to manage your organization

• Anew way for the “Quality Department” to audit reports and performance

• Something that requires you to discard what you learned with TQM, CQI, etc

• A new way to spend money without clear benefit to the organization

• Something that requires a complicated computer system

• A way to eliminate jobs

Lean

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Lean

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History of Lean, Six Sigma

• Frederick W Taylor: 1880s-early 1900s, systematic study of workers’ use of time

and motion

• Henry Ford: continuous flow production, waste elimination

• TWI: (Training Within Industry), 1940-1945

• W.E Deming and Joseph Juran: took quality control to Japan in 1953

• Kiichiro Toyoda and Taiichi Ohno: low inventories, flexibility

• U.S supermarkets: pull systems

• Shigeo Shingo: mistake proofing, reduced set up times

• Toyota Production System NIKE

• MIT and James Womack: bring Lean back to U.S.

• NBC White Paper: If Japan can, Why can’t we?, 1980s

• Eli Goldratt: published book The Goal”, early 1980’s

• Motorola: global deployment launched Six Sigma 1987, opportunity for error

Lean

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Lean

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Why Use Lean Six Sigma

• LSS is the CPI industry standard

Versatility Lean

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Lean

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When to Use the LSS Process

• When to Use:

– Driven by the Business Strategy

– Problems that “have been around as long as we can remember.”

– Solution is not known or is not obvious

– You are willing to commit people to identify and resolve the issue

– You want a more definitive solution than traditional methods can provide

– You want to encourage the upward flow of ideas and build team spirit

– You want group ownership of a course of action

• When NOT to Use:

– You don’t have a specific challenge or clear issue to solve

– You already have a solution and course of action

– You don’t have a consistent process to improve

Lean

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Lean

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Lean Six Sigma Principles

• Identify value in the eyes of the Customer

– Learn to see your processes from the perspective of your customer

• Identify the value stream and eliminate waste/variation

• Make value flow at the pull of the customer

– Develop solutions using the people who are currently working in the process

• Continuously improve knowledge in pursuit of perfection

Lean

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Lean

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Continuous Improvement

• A framework for constantly improving organizational performance

• Provides steady, incremental improvement in everything we do to meet/exceed changing expectations:

– Better quality

– Faster turnaround

– Lower costs

– More responsive service

• A relentless, never-ending process

• Requires that we all change the way we think talk work think, talk, work, and act

Lean

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Lean

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A Program of Process Improvement

Continuous Process Improvement (CPI) is a deliberate change in Process Performance

Lean

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Lean

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The Importance of Reducing Variation

• To increase a process Sigma Level, you have to decrease the variation

• Less variation provides:

– Greater predictability in the process

– Less waste and rework, which lowers cost

– Products and services that perform better and last longer

Foundation to Six Sigma

Identify and control the X’s

– Monitor and control the X’s to assure we will get the desired Y

Process output is A function of Key process and input factors that cause variation in the output

Lean

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Lean

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Why Aim as High as 6 Sigma? Lean

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Lean

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The Look of 6σ Performance

3σ - 99% not defective 6σ – 99.99966% not defective

Lost articles of mail per hour 20,000 7

Wrong prescriptions each yr 200,000 68

Hours without electricity 7 hr

per month

1 hr per 34 years

Lean

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Lean

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Culture of Performance Improvement Lean

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Lean

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Learning Check

• Why combine Lean manufacturing with Six Sigma?

• Why aim for 6σ?

• How do you improve a sigma level?

Lean

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Lean

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Overview of DMAIC Lean

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Lean

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The DMAIC Process

• Provides a structured approach for addressing problems

• Provides a common language

• Minimizes the risk of jumping to the wrong conclusion

• Provides a checklist to prevent skipping steps

• Each step has goals, tools and outputs

• Tollgate reviews occur at each phase

Lean

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Lean

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– Cleat statement of the intended problem and how to measure it

– High-level process map

– Key quality characteristics

• Approach

– Develop project charter

– Map the process

– Understand the voice of the customer

Lean

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Lean

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– Focus the improvement effort by gathering information about the current situation

• Outputs

– Baseline performance data

– Common understanding of how the process currently operates

– More focused problem statement

• Approach

– Collect data and check special causes

– Create detailed process maps

Lean

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Lean

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– Identify root cause and confirm with data

• Outputs

– A tested and confirmed theory

– Understanding of the effects of the inputs on the output

• Approach

– Explore and organize potential causes

– Use statistical methods to quantify a

– Develop, try out and implement solutions

• Outputs

– Planned and tested actions that eliminate or reduce the impact of root causes

– Comparison of “before” and “after” data to show effects

• Approach

– Create possible solutions

– Select solutions and develop plans

– Implement plans and measure results

Lean

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Lean

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– Maintain the gains by standardizing work methods or processes

• Outputs

– Documentation of new methods

– Train others in the new process

– System for monitoring the new process

• Approach

– Develop and document standard practices

– Train teams and monitor performance

– Create process for updating procedures

– Summarize and communicate learning

Lean

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Lean

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Learning Check

• What does DMAIC stand for?

• Describe the DMAIC process?

Lean

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Lean

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Lean Six Sigma Simulation

• Score for your team

• First round will use standard MRP batching process as defined by the instructor

• Second round implement the changes suggested by the class using DMAIC

• Each round will last 15 minutes

• The team with the most point WINS!!

Lean

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Lean

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The Army OBT has more information on LSS and training opportunities.

www.armyg1.army.mil/leansixsigma/whatislss.asp

Do you have any questions?

Thank you for joining our discussion today.

Lean

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Lean

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