Lean six sigma process improvement tools and techniques by donna summers chapter 01

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Lean Six Sigma: Process Improvement Tools and Techniques

Lean Six Sigma

Chapter 1

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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

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Lean Six Sigma

• 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

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Lean Six Sigma

• 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

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Lean Six Sigma

• Lean thinking is a mindset best described

as a relentless war on waste

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Lean Methodology

• 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

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Lean Methodology

• Lean thinking generates process

improvement by following five key

steps:

– 1 Study the process by directly

observing the work activities, their

connections and flow.

– 2 Study the process to systematically

eliminate wasteful activities, their

connections and flow.

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Lean Methodology

• Lean thinking generates process

improvement by following five key

steps:

– 3 Establish agreement among those affected

by the process in terms of what the process

needs to accomplish and how the process will accomplish it.

– 4 Attack and solve problems using a

systematic method.

– 5 Integrate the above approach throughout

the organization

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Lean Methodology

• Lean tools include:

– Error proofing

– Preventive and predictive maintenance

– Setup time reduction

– Reduced lot sizes

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Six Sigma Origins

• Bill Smith, Reliability Engineer, Motorola

Corporation

– The increasing complexity of systems and

products used by consumers created

higher than desired system failure rates.

– Holistic approach to reliability and quality

and developed a strategy for improving

both (1988).

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Six Sigma Methodology

• Six Sigma is a structured, data driven

methodology for eliminating waste from

processes, products, and other business

activities while having a positive impact on financial performance

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Six Sigma Perceptions

• Six Sigma Perceptions

– Perceived to be a business system that

improves the bottom line.

– Perceived as fitting naturally into the business systems of most companies

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Six Sigma Perceptions

• Six Sigma Perceptions

– Perceived as being more easily and more

successfully launched than traditional Total

Quality Management programs.

• TQM perceived as technical system owned by technical specialists.

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Six Sigma Comparison with Quality

Systems

Highly focused problem- Highly focused

problem-solving system solving system

Focus on profits Focus on improving

organizational performance including profit

Tools include SPC, DOE, FMEA Tools include SPC, DOE, FMEA,

Project management, capability studies, benchmarking,

Benchmarking Theory of constraints

3.4 defects/million Process capability

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Six Sigma Benefits

• Benefits of adopting the Six Sigma

methodology

– Enhanced ability to provide value to customer

– Enhanced understanding of key business

processes

– Reduction of waste

– Improved profit performance

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Six Sigma Focus

• Six Sigma Methodology focuses on:

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Six Sigma Basis

• Six Sigma Methodology is based on:

– Statistical Process Control Techniques

– Data Analysis Methods

– Project Management Techniques

– Systematic Training of Participants

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Six Sigma

• Six Sigma is data driven and

profit focused.

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Six Sigma

• The goal of Six Sigma is to reach 3.4 defects per million opportunities over the long term.

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Six Sigma

• Six Sigma seeks to reduce the

variability present in processes.

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Six Sigma

• An improvement of just 1 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

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Six Sigma Projects

• Six Sigma projects are selected based on

their ability to contribute to and enhance

an organization’s financial performance

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Six Sigma Projects

• Six Sigma projects seek out sources of

waste (overtime, warranty claims,

production backlogs, customer issues).

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Six Sigma Projects

• Six Sigma projects have five phases:

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Six Sigma Participants

• 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

• complete cost-savings projects ($1,000,000+)

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Six Sigma

• Category ASQ Certified Quality Engineer (CQE) Black Belt

• 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-Measure-• Solving 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

• Measurement Measurement Systems Measurement Systems

• Systems Metrology Metrology

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Six Sigma

• Six Sigma Acronyms

• APQP Advanced Product Quality Planning

• CTQ Critical to Quality

• DFSS Design for Six Sigma

• DMAIC Define, measure, analyze, improve,

control

• DPMO Defects per million opportunities

• DPU Defect per unit

• FMEA Failure Modes and Effects Analysis

• KPIV Key process input variable

• KPOV Key process output variable

• Process Owners The individual responsible for the

process and what it produces

• Reliability measured as mean-time-to-failure

• Quality measured as process variability and

defect rates

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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

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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.

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Six Sigma

• Another point to consider:

– When the organization say no more

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Lean Six Sigma

• Lean Six Sigma is about results

– Enhancing profitability through elimination of

waste and reduced variability.

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