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Lean vs six sigma -jk
This document provides an overview of Lean Six Sigma and how it combines Lean Manufacturing and Six Sigma. Lean focuses on reducing waste and cycle times, while Six Sigma aims to reduce defects and variation. Together, Lean Six Sigma seeks to improve quality and processes by identifying and removing causes of defects and waste. It uses data-driven, statistical methods to solve problems and implement robust control plans for sustained improvements.
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Lean vs six sigma -jk
- 1. Combining Lean &Six Sigma Prepared by Julian Kalac Lean Six Sigma Master Black Belt September 30, 2014 1
- 2. Black Belt Training What is Lean Six Sigma? 1)Lean Manufacturing focusses on reducing waste, Non-Value Add activity and “Speeding” up the Process cycle Times. 1)Six Sigma is defined as 3.4 DPM (Defective Parts- per Million), focusses on reducing defects and process variation 2)Lean Six Sigma = Six Sigma “Quality”+ Lean “Speed" 2
- 3. Lean Six SigmaSeeks to improve the quality of manufacturing and business process by: identifying and removing the causes of defects (errors) and variation. Identifying and removing sources of waste within the process Focusing on outputs that are critical to customers
- 4. 4 σUse data-driven,measurement-based, statistical methods to Solve problems, improve performance σFocus: Surgical “inch-wide, mile-deep” investigation and resolution σApproach: σSolve problems at the system and root cause level σImplement robust control plans for sustained improvements What is “Six Sigma”? An Analytical Methodology that Focuses on Reducing Process Variation
- 5. 5 The systematicelimination of waste and re- alignment of resources to deliver value to the customer faster, better, & more consistently Lean in Manufacturing: ◦Focus: Eliminate waste, non-value add steps, process constraints and bottle necks that cause problems in work throughput ◦Approach: Intuitive and broad - “inch-deep, mile wide” Leading to Leading to Eliminate Waste Reduced Cycle Times Increased Capacity
- 6. •To help explainthe Toyota Production System to employees and suppliers, the “House of Toyota” graphic was created by Taiichi Ohno and Eiji Toyoda. •They chose the house shape because it was a familiar one – and also conveyed stability. •The roof contains the primary goals of TPS: superior quality, cost and delivery through waste elimination
- 7. Value Added Typically95% of all lead time is non-value added 1.Overproduction 2.Waiting 3.Transportation 4.Non-Value Added Processing 5.Excess Inventory/Material 6.Defects 7.Excess Motion 8.Underutilized People Non-Value Added 5%
- 8. Value Added Anyactivity that is adding value to the part and the customer is paying for. Example: any process where you are doing something to the part (cutting, welding, riveting, bending) Non-Value Added Any activity that does not add Value to the part. Example: moving parts from one area to another, reworking parts, set-up/change- overs, repairs
- 9. 9 Single PieceFlow Just-In-Time Eliminate Waste •Process parts one-at-a- time or in small lots instead of in large batches or economies of scale •Quick changeovers •Balanced and continuous flows instead of stop and start processing •Have just the right amount of inventory you need, when you need it, where you need it •Optimize the amount of inventory required •Ensure that your resources are ready to support the flow •Never knowingly pass on a defect •Improve the capability of your processes •Fix failure modes when they occur •Determine and resolve the deeper root causes = = The Toyota Production System Model by Michael Kukhta Reference: Senji Niwa, from the Shingijutsu Organization. Niwa-san also worked directly for Toyota’s Taiichi Ohno (TPS creator) for 18 years. “Classic Lean” Strength “Supply Chain Management” Strength “Classic Six Sigma” Strength
- 10. INSANITY “Doing thesame thing over and over again and expecting different results” Albert Einstein 10
- 11. Risk & Reward Continuous Improvement •Everyday culture of change in how and what we do •Focus on maintaining & improving process precision, accuracy and discipline •Often savings are not strictly monitored but just put back into the business •Can support & narrow Breakthrough Innov. Amount of Resources and Activity Incremental Innovation •Relatively small improvements that are faster, better cheaper, •Savings show up in bottom & top line Distinctive Innovation •Significant advances and improvements by extending existing technologies/approaches •Adapting “other industry/sector technologies/approaches •Example: “Lean”/JIT/Single-piece- flow/Pull Systems in health care Breakthrough & Disruptive Innovation •Fundamentally new technologies/approaches •Implementing things previously thought to be not possible •Often a birthplace of Distinctive & Incremental Innovation •Can fuel and clash with Conti. Impr. and process discipline
- 12. 12 L AABB CC DD EE 1 L2 L3 Customer Customer DA DB DC DD DE Enterprise Process Department Lean breaks a process down to understand the steps and actions as they occur, the time and resources needed to complete, as well as the delay and wait time between process steps
- 13. Six Sigmaevaluates a process in terms of performance, accuracy, and consistency Targeted for improvement Time s LSL USL 6s Standard deviation
- 14. Shift Process Average Reduce Process Variation Robust Products and Processes Six Sigma Objectives Lean Objectives Improve Process Flow Reduce Process Complexity Reduce: Waste Non-Value Added Work Cycle Time Lean Six Sigma Improves Quality, Cost, and Delivery Improvement Objectives
- 15. 15 Lost managemant time cost Maintenance cost Lost opportunity Lost assets cost Rerun cost Lost business, goodwill cost Lost credibility cost Prevention cost appraisal cost Project rework cost Litigation SS Titanic Management Waste Costs: Costs driven by problems and process steps that add no value to products & services delivered to customers Appraisal Costs: Costs incurred to determine the degree of conformance to customer needs Prevention Costs: Costs incurred to keep failure and appraisal costs to a minimum Failure Costs: Costs directly incurred due to defects internal to the system or after delivery to the customer
- 16. Voice of Customer Voice of Process The Voice of the Process is independent of the Voice of the Customer Sigma Capability Defects per Million Opportunities % Yield 2 308,537 69.15% 3 66,807 93.32% 4 6,210 99.38% 5 233 99.98% 6 3.4 99.99966%
- 17. 99% Good (3.8Sigma) 99.99966% Good (6 Sigma) 20,000 lost articles of mail per hour (based on 2,000,000/hr) 7 articles lost per hour Unsafe drinking water for almost 15 minutes each day 1 unsafe minute every 7 months 5,000 incorrect surgical operations per week 1.7 incorrect operations per week 2 short or long landings daily at an airport with 200 flights/day 1 short or long landing every 5 years 2,000,000 wrong drug prescriptions each year 680 wrong prescriptions per year No electricity for almost 7 hours each month 1 hour without electricity every 34 years
- 18. 18 99% Good 99.99966% Good 20,000 5,000 200,000 7 hr per month Lost articles of mail per hour 7 Incorrect surgeries per wk 1.7 Wrong prescriptions each yr 68 Hours without electricity 1 hr per 34 years
- 19. 19 X1 =_____ Y1 = _____ X2 = _____ Y2 = _____ X1 = _______ Y1 = _______ X2 = _______ Y2 = _______ X3 = _______ Y3 = _______ SIPOC Diagrams can be characterized as a 3-step, high-level (“30,000-foot) Process Flow Diagram for a process Critical to Customer Quality Requirements (the “CTQ’s) Key Inputs (Materials & Resources) and Key Process Input Variables (KPIV’s) Inputs Processes Outputs Supplier Customer Secondary Metric (e.g. Field Returns) Primary Metric (e.g. Scrap $/Month
- 20. Cycle Time isthe actual production rate – It is the time between two successive finished items coming out of your production cell. Cycle Time is dictated by the slowest (longest) operation in the cell. 40 min 20 min 25 min 15 min 30 min 1 5 4 3 2 •What operation controls the cycle? •What is the Critical Path? •How can you relieve or shift the bottleneck?
- 21. THE PROCESS PROCESS OUTPUTS CONTROLLED VARIABLES CUSTOMER PROCESS INPUTS UNCONTROLLED NOISE VARIABLES Process and Its Variables
- 22. 22 We knowwe must change Xs to create a change in Y… But how do we know which Xs to change and how to change them? y = f (x1, x2, …) process output is key process and input factors that cause variation in the output a function of
- 23. 23 •Monitor processesto prevent recurrence of variation, defects and non-value work •Maintain performance levels •Find more creative ways to improve •Fix root causes •Find/Implement Preventive Fixes •Deploy changes organization •RESULT: Performance is more predictable ; culture changing •Plan and apply Improve Tools to fix problems and reduce variation •Implement improvement opportunities •RESULT: Improve tools applied, changes implemented and performance improvement in place DMAIC Improvement Model A Road Map for guiding Improvement Projects •Identify customer problems •Identify performances standards •Identify improvement objectives •Link problem to the key performance metrics •Find the right problems •RESULT: Problem Statement & Project Charter Define Measure Improve Analyze Control Results •Map the process •Validate the measurement system •Collect data •Link your metrics •RESULT: Process maps and good quality data collected by listening to the process •Identify sources of variation & failure points •Establish process capability •Identify improvement opportunities •Redefine and Re-prioritize •RESULT: Determine performance, Identify critical sources of variation and root causes
- 25. Black Belt Training First Pass Yield (FPY) Rolled Throughput Yield (RTY) Receive Parts/information From your supplier STEP #1 95.5% First Pass Yield (FPY1) FOLLOWING RECEIPT INSPECTION AND FALLOUT STEP #2 97.0% First Pass Yield (FPY2) FROM INITIAL OPERATIONS STEP#3 94.4% FPY3 AT FINAL STEPS OR ON FIRST TEST ATTEMPT ONLY 87.4% RIGHT FIRST TIME 45,000 ppm wasted 28,650 ppm wasted 52,350 ppm wasted RTY = FPY1 X FPY2 X FPY3 = .955 X .970 X .944 = 87.4%
- 26. Black Belt Training 1)High-Level Process Map 2)Suppliers, Departments, Customers 3)Mid-Level Process Map 4)Specific Area ex Production 5)Detail-Level Process Map 6)Specific process/operation 7)(most commonly used) Stop Start Stop Start Start Stop Stop 26
- 27. Black Belt Training VA/NVA Ratio= 46% DPU = ____ RTYield = _____ SCORE CARD: Building a Value Stream Map I’m going to have coffee Fill c. maker with water Scoop Coffee into c. maker Get & place Filter in c. maker Drink coffee Is taste OK Brew coffee Pour c. into cup Add cream & sugar Water Supply Process Shopping Process Electricity Supply Process Eating Equipment Supply Process Tasting Process Housekeeping Processes Transactional & Support Processes Process Data & Information NVA = Non-value Added Time VA = Value Added Time VA Time NVA Time Temp of Water= ___ Quality of Water= ___ Pressure of Water= ___ Amount of Coffee= ___ Quality of Coffee= ___ Type of Coffee= ___ Defective Coffee= ___ 60 sec 30 sec 60 sec 360 sec 10 sec 60 sec 10 sec 10 sec 5 sec 600 sec 30 sec
- 28. Accurate but notprecise - On average, the shots are in the center of the target but there is a lot of variability Precise but not accurate - The average is not on the center, but the variability is small Source: iSixSigma
- 29. Statistical Analysis 0.0000.005 0.010 0.015 0.020 0.025 7 6 5 4 3 2 1 0 New Machine Frequency 0.000 0.005 0.010 0.015 0.020 0.025 30 20 10 0 Machine 6 mths Frequency Is the factor really important? Do we understand the impact for the factor? Has our improvement made an impact What is the true impact? Hypothesis Testing Regression Analysis 5 15 25 35 45 55 60 50 40 30 20 10 0 X Y R-Sq = 86.0 % Y = 2.19469 + 0.918549X 95% PI Regression Regression Plot Apply statistics to validate actions & improvements
- 30. Is your errorin the process or in the way you measure it? Could it be that you actually are “good” but the error in the measurement system shows that you are not “good”? Overall Variation Occurrence-to- Occurrence ( or Piece- to-Piece) Variation Measurement System Variation Repeatability: Variation due to gage or measurement tool Reproducibility: Variation due to people or operators who are measuring
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- 32. RESULTS FROM SIXSIGMA IMPLEMENTATIONS Inferior Below Average Above Average Excellent TOTAL QUANTITY OF IMPLEMENTATIONS How Six Sigma is Implemented and Applied Will Determine the Results Categorization of Results
- 33. Black Belt Training 33 What are the Methods and Tools? “Lean” focuses on: The systematic elimination of waste and re-alignment of resources to deliver value to the customer faster, better, & more consistently Supply Chain Management: Mapping your processes through the entire business enterprise with standard elements “Six Sigma” focuses on: Use of analytical and methodical fact based problem solving methods Drastically reduce variation then control and manage whatever variation is left over Increase predictability, accuracy and precision Product and Services Cash/Funding Information Customer’s Customer Supplier’s Supplier Supplier Your Company Customer Plan Make Source Make / Deliver Repair Deliver Source Deliver Source Make Deliver Source Return Return Return Return Return Return Return Return Plan Plan LSL Ẋ USL Theory of Constraints: Find & eliminate the bottle necks Business Process Re-engineering: Start over VA Time NVA Time FLOW
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