comb for 6 sigma class, Six Sigma Green Belt

Paths to Cost Reduction the Traditional Approach verses the LEAN Six Sigma.

o The lean approach is to reduce variation, waste and boost efficiency.

Capacity Planning

o The process of determining the production capacity needed by an organization to meet changing demands.

Process Performance Metrics 2

o Throughput Time = The average amount of time it takes for products to move through the system. o Process Velocity = Throughput time / Value Added Time o A measurement of wasted time in the System o Productivity =nput / Output o A measurement of how well a company uses its resources o Utilization = Time a resource is used / Time a resource is available o A proportion of time a resource is actually used o Efficiency = Actual Output / Standard Output

Utilization =

o Time a resource is used / Time a resource is available A proportion of time a resource is actually used

Cycle time

o is the maximum time allowed at each workstation to complete its set of tasks on a unit.

8 Dimensions of Quality that produce Customer Satisfaction

o performance o features o reliability o conformance o durability o serviceability o aesthetics o perceived quality

Lead Time Reduction

(Definition of FCST OP = LT * Usage) There is a plant-wide initiative to measure and continually reduce lead times Non-value-added steps in the mfg. process are gradually eliminated and dock to dock velocity is increased

Streamline Flow

(POKA - YOKA by Shigeo Shingo with simplicity, fail safe, kitting) It includes such things as checklists or special tools that Prevents the worker from making an error Gives rapid feedback of abnormalities in the process to workers in time to correct them. Use of Kanban and demand flow techniques, to produce to order rather than to stock

Quick Changeover

(Single Minute Exchange of Dies (SMED) by Shigeo Shingo)

Six Sigma claims

- that focusing on reduction of variation will solve process and business problems

Process Map

A process map is a series of symbols and lines that show the flow of activities within a process. A process map shows certain types of information and relationships: Process boundaries scope the process from starts to end Responsibilities between different functions are defined Interactions between steps and how they're related are illustrated Disconnects within the process are also illustrated Nonvalue-added activities are identified Bottlenecks within the process are also identified Inputs and outputs are identified, whether it's information, or applications, or materials that are used within the process and what the outputs are

Utilization = Time a resource is used / Time a resource is available

A proportion of time a resource is actually used

Kanban:

An inventory or production control system that uses a signaling device to regulate flows

Price - Cost = Price - [VA + NVA + Waste] =

Profit

law 1

The Law of Flexibility - The velocity of any process is proportional to the flexibility of the process.

Total cycle time / TAKT time =

Theoretical # of operators needed

starts (demand) =

exits

5S

o Sort o Set in order o Shine o Standardize o Sustain

Six Stages of Team Evolution

-Forming - The first stage involves forming. When Six Sigma teams form, they start to formulate roles and responsibilities. This is where the team leader needs to provide very specific direction and delegate the roles and responsibilities. -Storming - This stage is where members start testing their boundaries and learning how they're going to communicate given their diverse backgrounds. -Norming - The next stage of team evolution is norming. Once the team starts to understand what the problem is, they start learning how to communicate with each other. In this stage, relationships start to gel. -Performing - Once the team starts working together, it can move on to the performing stage. This is the most productive stage within the team's evolution as team members are now unified. -Adjourning - The adjourning stage is the end of the project. This is where the team is dissolved because they've accomplished the project goals. -Recognition - The final stage is recognition. Once the team has worked together and they've accomplished their goals, it's important to recognize the team. In this stage, team leaders give feedback and celebrate the accomplishments of the team.

Brainstorming Process

-Identification and information - The first two steps try to identify the problem or the opportunity. You also want to set the goal for the session. -Speculation and suspension - The next two steps start developing a pool of ideas. During the speculation stage, which is stage three, the bulk of the transforming occurs. After the main brainstorming session, the team should break for a time during the suspension stage. -Evaluation - During the evaluation stage, the team moves from quantity - from a large number of ideas - to focusing on those vital few to drive the quality of the ideas. -Analysis - During the analysis stage, the team reviews the top few solutions and can check them to validate them against the project data and requirements. -Presentation - Then during the presentation, the seventh step, the final report is prepared and is presented to the customer, or the principal stakeholder, or any other relevant decision maker for final approval.

Other Roles on Six Sigma Team

-Sponsor - There are both executive sponsors and sponsors. Executive sponsors are typically responsible for the strategic direction of the projects. A sponsor may be a functional manager or an external customer but is typically the recipient of the benefit of the project -Process owner -The process owner is typically a functional manager who works directly with the team to provide functional expertise. As the project team works to improve a process, the process owner helps them to understand the current situation and the current baseline. -Coach - The coach ensures the team understands the tools and methodologies. In some organizations, this could be the Master Black Belt. The coach is the Six Sigma expert that's assigned to help with any queries or help to solve any problems. -Facilitator -The facilitator acts as a quality advisor to ensure project requirements are met. This person helps to keep team members focused on the task at hand and helps facilitate discussions and meetings to ensure everyone stays focused on the core problem that they're trying to solve. -Team member - The team member is anyone directly involved with the team that helps to carry out the work of the project. Each team member fulfills a different function within the team.

Creating Process Map

1. Define process boundaries. Start developing the process map by defining process boundaries. You need to know what steps fall within the process scope, where the process starts, and where the process ends. 2. List steps in order. Once you've determined all the steps that are involved, you'll list the steps in order. This is typically done by consulting with those involved. To do this, start at the high level and define what the major tasks are and any decision points within the process. Once the high level tasks have been defined, they can be further broken down. This is commonly done using sticky notes, so you can move processes around and add in finer detail. 3. Create map with symbols. Using the information from Step 2, you can create a process map. This could be done with flow charting software, or it can be done by hand. 4. Verify the map. The map is verified by showing it to the stakeholders. These are the people that need to understand it and those that need to carry out the steps. You would take your process map into a meeting with the stakeholders and go over the process map to discover places where the map may not be clear, or where additional information is needed. Once the map has been verified and corrected, then it can be completed.

how many laws of 6 sigma

5

Output Capacity

= OT/CT o OT = Operating time per day D = Desired Output Rate Ct = Cycle Time = OT/D

Calculate Percent Idle Time

=Total time they should be working/time spent idle.

Process Reliability (Cpk by Tagichi Ohno)

A formalized system is in place to maximize equipment uptime and reduce variation in product quality. Overall Equipment Effectiveness (OEE) measures are at world class levels

Productivity = Input / Output

A measurement of how well a company uses its resources

Throughput time / Value Added Time

A measurement of wasted time in the System

A proportion of time a resource is actually used-Efficiency =

Actual Output / Standard Output

Efficiency =

Actual Output / Standard Output

Information for creating process map

Before starting to create a process map there are several elements that are required, to make sure you have the information that you'll need: Who is involved? You need to understand who is involved within the process because those are potential people that you will interview and work with, to fully understand how the process operates. What are the steps and activities involved within the process? When the sequence of steps occur. Once you have the steps and activities, you'll need to sequence those steps and activities based on the proper order of how the process operates. Where. You need to know where things happen where inputs come from, and where outputs go

7 Uses of Kanban

Bin Kanban -when bin is empty replenish Production kanban-authorizes production of goods Withdrawal kanban authorizes movement of goods Kanban square-a marked area designated to hold items Signal kanban-a triangular kanban used to signal production at the previous workstation Material kanban-used to order material in advance of a process Supplier kanban-rotates between the factory and suppliers

Defects

Counting defects works well with discrete data. Rather than needing an actual reading or a measurement on a particular aspect of your product or service, you can use information stating whether it's good or it's bad. You can then use this type of information to calculate your defects per unit, your defects per million opportunities, or your rolled throughput yield, and your sigma value. Measuring process variability The second way to measure process performance is to measure the variability of the process directly. Process variability compares the mean and standard deviation with specification limits. This requires that you have continuous data that has a normal distribution, as opposed to counting defects where you can have discrete information regardless of whether it's good or bad. Process variability uses continuous data to calculate process capability indices, your Cp and your Cpk. The Cp and Cpk values can then be converted into a process sigma value using a table.

Cp

Cp is the ratio of the specification spread to the actual process spread. Because it's a ratio, the higher the Cp value, the better the fit for the process within the specification limits.

6 Sigma: Cp, Cpk, DPMO

Cp>=2.0 Cpk>=1.5 DPMO<=3.4

Cpk

Cpk is the ratio of the same element, but unlike Cp, Cpk takes into adjustment whether or not the process is centered or not. You want to understand if you have a non-centered distribution of data. The higher the Cpk value, the better the fit for the process within the specification limits. A higher Cpk value also means that the process mean is closer to the middle of the specification limit, or closer to the target.

Process Modeling Results

Descriptive results trace what actually happened. This is where the team is getting baseline information to understand what the current process "as is". Prescriptive results define how the process should run. The team is looking at the future, to understand ideally how the process should run, to get an idea of the "should be" state. Explanatory results illustrate who, when, where, and why. These are the details of the process that can be used to further improve the process and how it operates.

Continuous Improvement (Kaizen by Tagichi Ohno

Employees are engaged in _______ or Kaizen Events on a regular basis. All teams meet to get goals, solve operating problems and implement corrective action Employees are empowered to engage in Continuous improvement Example is Samsung

Empowered Teams

Employees are multi-skilled members of motivated, capable work groups with clear roles, responsibilities, and performance standards

Organizational Roles

Executive team and Champion - Starting at the highest level of the organization, there is the executive team and the Champion, who provide the vision for the organization. Master Black Belt and Black Belts - The Master Black Belt works with the Champion to select projects and mentors the Black Belts, who are actively involved in leading the Six Sigma projects. Green and Yellow Belts - The Green Belts implement the process improvements that occur within their own jobs, and the Yellow Belts are people participating on the team and who have a general understanding of Six Sigma.

First Time Yield

First time yield is commonly referred to as first pass yield. A process resulting in 1,000 units out of which 100 are scrap would yield 900 viable units in the end. This results in a first time yield of 90%. In other words, 90% of the products that come into the process leave the process being defect free. First time yield is typically used for processes or subprocesses that are only made up of one single operation or step.

Effective Meetings

Floundering The first type of issue is when the team is floundering. As a Six Sigma team facilitator it's important to recognize when this is happening. Typically floundering occurs when the team is struggling to make progress and move forward. Digression Digression is when a team starts discussing subjects in team meetings that aren't on the agenda. Tangents Another common issue is tangents, sometimes called "off sides" or "off tangent." This typically happens when the meeting lacks a clear purpose.

Lean manufacturing

Focuses on identifying and eliminating waste and non-value-added activities

Reasons for Excessive Cohesion

Groupthink - In groupthink there is a desire within the team for cohesion that dominates over the individual will and the creativity of the team members. Acceptance of opinion as fact - You need to be careful of accepting opinions as facts. Rush to accomplishment - When working on Lean Six Sigma projects, you're typically working with very aggressive goals and have Attribution - Attribution is when conclusions are formed based on inference rather than on facts.

Multivoting

Multivoting Another tool that's also a convergent thinking tool to help prioritize options is multivoting. Multivoting helps the team to rank or narrow down a list of ideas, options, or solutions. What's beneficial about Multivoting and Nominal Group Technique is that you are driving towards consensus because each team member is participating in the process. Multivoting starts with generating a list of ideas. Similar ideas then are grouped by affinity, and these should be natural. Each group is then assigned a number so that it can be identified. Based on these groups, each participant then gets to choose one-third of the items that they determine to be the most important. Each participant then casts votes for each item.

Nominal Group Technique

Nominal group technique is a methodology that uses a more structured format than brainstorming. The term nominal is used because the individuals involved in this team have minimal interactions.

A3 Report

One page reports used for documenting the necessary information needed for progress reporting and decision making

Process Map Symbol

Oval - The oval represents the start or the stop of a process. Rectangle - Each step in the process is represented by a rectangle. Typically each rectangle includes text that describes what's happening within that step or operation. Diamond - The diamond is used to describe a decision that has to be made. Circle - A circle is used to describe a step where an inspection occurs. D-shape - Delays within the process are indicated by the D-shape. Parallelogram - An input or output within the process is represented by a parallelogram. Flow line - Flow lines are arrows placed between each step of the process, to indicate the direction of the flow of the process. Arrow - An arrow can be used to indicate transportation or handling. Jagged arrow - An arrow with a jagged line represents transmission. Rounded rectangle - A rectangle with rounded edges indicates an alternative process. Square - If there's a measurement within the process, it's represented by a square. Inverted triangle - An upside-down triangle represents storage Manual operation - The symbol for a manual operation or sub-processes looks like an inverted trapezoid.

Interpersonal Issues

Overbearing team members Overbearing team members are team members with a disproportionate amount of influence or authority. They typically discount the contributions or the suggestions of others, which leads to other members not necessarily wanting to participate because their suggestions are put down. Dominant team members Dominant team members take up an excessive amount of time. They talk too much during discussions and try to control discussions typically by focusing on very trivial issues. Reluctant team members Reluctant team members may be intimidated, insecure, resentful, or even hostile. As such, they hold back necessary information needed for the project that the team is working on. Feuding Feuding is a conflict that arises when there is a disagreement or a clash between two strong, unbending personalities. Discounting Discounting occurs when one team member dismisses the contribution of another.

Process Performance Metrics

Performance metrics are used initially in the Define phase. They enable the team to determine the goal of the process improvement effort and isolate the metric that is to be improved. This is critical for the team's understanding of their objective in relation to the problem they're trying to solve. In addition, as they move throughout the rest of the DMAIC methodology, process performance metrics are how they're going to track the project and whether or not they are making improvements in the right direction. This also helps drive their project decisions.

TIMWOODS

T-transportation I- Inventory M- Motion W- Waiting O-Overprocessing O- overproduction D- Defects S- Skills

Before Calculating Process Capability

Prior to calculating process capability, two conditions must be in place: Process is stable over time - The first is that the process must be stable over time. That means that the mean and the standard deviation are consistent over time. Data fits normal distribution - The second condition is that the data must fit a normal distribution.

Nominal Group Technique Steps

Problem is presented. In the first step, the facilitator presents the problem or the topic to the group. It's useful for the facilitator to do this with an open-ended question such as "what are some of the ways we can improve this process?" Members write down ideas. During the second step of the process, team members work privately to write down their own ideas. Ideas are shared round-robin style. In the next step of the process, the facilitator asks each of the participants to read their responses one at a time. This is typically done in a round-robin fashion where one response per person is shared each time around the circle to make sure everybody presents their ideas equally and has heard each other's ideas. Members score or vote on ideas. Once all the ideas have been written down, each is designated with a letter or a number so that it can be identified. Ideas are discussed in the order they appear, but there is no prioritization at this point. Ideas are ranked based on score. In the next step of the process, each ranking is recorded. This is usually done on a series of cards. All of the scores for each idea are then added together, resulting in a total score for each idea.

Types of Teams

Process improvement - Process improvement teams focus on improving specific business processes, and their goal is to produce immediate results. Because of this focus, process improvement teams typically concentrate on solutions that are easy to implement Quality - Quality teams focus on improving internal efficiencies that impact output because this is what the customer is experiencing. Ad-hoc - Ad-hoc teams focus on completing projects within very defined or specific requirements. Because they have very specific requirements, ad-hoc teams typically have a limited lifespan as they're focusing on that key defined goal. Self-managed or agile - Self-managed or agile teams lead their own efforts and manage their own projects. These require a high degree of collaboration, and there's minimal direction from management.

Process Modeling

Process modeling is used to make sure that there is a thorough understanding of all the different steps, aspects, and individuals involved in a process. Process modeling involves making a visual model of the process. This is very useful in a Six Sigma project because it gets all of the various team members involved in understanding the process the same way.

Components of Lead Time

Processing time Reduce number of items or improve efficiency Move time Reduce distances, simplify movements, standardize routings Waiting time Better scheduling, sufficient capacity Setup time Generally the biggest bottleneck

Process Flow

Produce - starts with a process that produces a product Review - the process is reviewed OK?- decisions within the process are made to determine if the product is good or bad Rework or Ship - based on the decision, a good product will be shipped, and a bad product will be reworked

To run properly Cycle Time must be less than_____ To Meet Customer Demand If Cycle time is close to____ any deviation in the time will cause the system to crash. How often an item needs to be produced-

TAKT Time

what the rate of production needs to be to match customer demand

Takt Time to determine

RACI Chart / Responsibility Matrix

RACI chart or Responsibility Matrix One of the highest level types of process maps is the Responsibility matrix. It's used to analyze a process by looking at what steps are within the process, and who owns those processes. There are four key levels of responsibility within a Responsibility matrix. These levels define who is Responsible Accountable Consulted, and Informed A RACI chart is used to show various individuals that are involved in a process.

Associate Involvement & Commitment

Shop Floor employees routinely solve problems, suggest and implement improvements and are committed to world class performance

Process Capability Metric

Specification limits - Specification limits come from the Voice of the Customer; they should be based on your customers' requirements. Process spread - Process spread - or process variation - is basically the voice of your process that provides your process limits.

Total Quality Management (TQM)

Studer Group

Functional Deployment Map

The Functional Deployment map, also known as a Swimlane diagram, shows a lot of the information from the Responsibility matrix and the Top-down chart, in addition to capturing the functional information by department. Steps within the process are mapped at each step of the process, showing any changes. Any time the process crosses one of the swim lanes or functional barriers, this indicates where hand-offs occur between departments. This tool is useful because it captures those hand-offs and helps show some of the complexity within the process, that occurs because of potential loss of information and miscommunication due to the functional barriers and hand-offs.

law 2

The Law of Focus - 20% of the activities in a process cause 80% of the delay. (Related to Pareto Principle)

law 3

The Law of Velocity - The velocity of any process is inversely proportional to the amount of WIP. This is also called "Little's Law".

law 0

The Law of the Market - Customer Critical to Quality defines quality and is the highest priority for improvement, followed by ROIC (Return On Invested Capital) and Net Present value. It is called the Zeroth law as it is the base on which others are built.

Workflow Diagram

The Workflow diagram is used to depict the various movement of individuals involved within the process. Sometimes this is called a Spaghetti diagram because the process follows each step, capturing the movement related to the process in each department. The workflow diagram adds another dimension to the process map, rather than showing that the process looks like a nice clean linear process, this captures all the additional movement that's required. Using these different charts and maps helps to provide dimension and develop understanding as you work through the process mapping stage.

Throughput Time =

The average amount of time it takes for products to move through the system

law 4

The complexity of the service or product offering adds more non-value, costs and WIP than either poor quality (low Sigma) or slow speed (un-Lean) process problems.

Cellular Mfg. (Focused Factories)

The facility is structured into product-or customer-focused work groups housing all operations to manufacture a family of products. Office operations are similarly structured to increase accountability, response time and quality while reducing inventories and backlogs

Know Total Quality Management (TQM)

The practice of companies creating a culture where they deliver the least deviated products possible

Cross-Functional Teamwork (Not Boring)

There is a high level of teamwork and coordination between organizational units and strong internal customer-supplier relationships.

The average amount of time it takes for products to move through the system.

Throughput Time =

Process Velocity

Throughput time / Value Added Time A measurement of wasted time in the System

Top Down Chart

Top-down chart The Top-down chart is very similar to the RACI matrix but it provides a little bit more information about a process. A top-down chart is a linear sequence of stages in the process and the steps performed in each stage, along with their substeps.

VA- o NVA- o OVA-

Value Added Non Value Added Over Value Added

What to look for in a process map

When reviewing a process map, there are four characteristics you should look for: Good flow Opportunities for improvement Delays Rework loops

Rolled Throughput Yield

When you are considering multiple steps, you want to look at rolled throughput yield. In order to calculate rolled throughput yield, you need to know the total number of process steps and the first time yield for each process step in order to multiply those by each other. Thus were you to have a process with three steps, each step would have its own first time yield. If the first time yield for each is over 90%, you would expect to have a good rolled throughput yield. However, based on how the figures work together, you will see that the rolled throughput yield is much worse than it appears.

Quick changeover methods

are employed to increase equipment availability and respond quickly and economically to changing schedules and customer needs

Common Process Performance Metrics

defects per unit (DPY) defects per million opportunities (DPMO) first time yield (FTY) rolled throughput yield (RTY) process capability indices such as Cp and Cpk cost of poor quality (COPQ)

The Steps in Autonomation topics

o Stop the process o Error prevention Poka-Yoke Total Productive Maintenance (TPM

second approach to Lean Manufacturing

is promoted by Toyota, in which the focus is upon improving the "flow" or smoothness of work, thereby steadily eliminating Mura ("unevenness")

Throughput

is the time for an item to complete the entire process, which includes: Waiting time Transport time Actual processing time

Time Cycle time

is the time to accomplish a task in the system

A B C

items: 20% of SKUs, 80% of dollars items: 30 % of SKUs, 15% of dollars items: 50 % of SKUs, 5% of dollars

Productivity

nput / Output A measurement of how well a company uses its resources

Ct

o = Cycle Time = OT/D

7 Forms of Waste

o Defects o Overproduction o Transportation o Waiting o Inventory o Motion o Processing

Improving Flows in a Process: 4. Basic Principles of Lean Operations

o Efficient 1. plant layout 2. fast/accurate flow of materials and 3. information o To increase process flexibility o Reducing 1. equipment changeover times & 2. cross-functional training o To decrease process variability o 1. Flow rates, 2. processing times, and 3. quality o To minimize processing costs o Eliminate non-value adding activities (1. transportation, 2. inspection, 3. rework)

Characteristics of Lean Systems:

o Just-in-Time, Denoting a manufacturing system in which materials or components are delivered immediately before they are required in order to minimize inventory cost.

Design Product Layouts:

o Line Balancing, Process of assigning task to workstations so that workstations have approximately equal time requirements. Minimize idle time- balance bottlenecks.

Supplier Policies Keiretsu

o Locate near to the customer o Use small, side loaded trucks and ship mixed loads o Consider establishing small warehouses near to the customer or consolidating warehouses with other suppliers o Use standardized containers and make deliveries according to a precise delivery schedule (preferably reusable, standard size containers) o Become a certified supplier and accept payment at regular intervals rather than upon delivery

Efficiency = Actual Output / Standard Output

o Measures performance relative to standard

8 Characteristics of Organizational Culture

o Openness an humility form top to bottom o Environment of accountability o Freedom for risk taking o Fierce commitment to do it right o Willingness to tolerate and learn o Unquestioned integrity o Pursuit of collaborating Courage and persistence

Studer Group

o works with healthcare organizations to help them achieve and sustain exceptional improvement in clinical outcomes and financial results.

System cycle time is equal to

the longest task cycle time in the system—the rate at which customers or products exit the system, or "drip time."

WIP=

waiting--Longer lead timesDelayed salesIncreased expenses= Less Profit

Waste (Muda)-

• Futility, Uslessness

Lean Cost Principle

• The cost principle is based that in a competitive market, the customer sets the price o Price - Cost = Profit o Price - [VA + NVA + Waste] = Profit