Lean Six Sigma MidTerm
Value Stream Mapping - ASQ Definition
"A pencil and paper tool used in two stages. First, follow a product's production path from beginning to end and draw a visual representation or every process in the material & information flows. Second, draw a Future State Map of how value should flow. The most important map is the Future State Map.
Value Stream - ASQ Definition
"All activities, both value added and non-value added, required to bring a product from raw material state into the hands of the customer, bring the customer requirement from order to delivery, and bring a design from concept to launch"
Tools to Define (DMAIC)
- 5 Whys - Activity Network Diagrams - Affinity Diagrams - Benchmarking - Gantt Chart - Multi-voting - Project Evaluation & Review Technique
Team Member (SixSigma Role)
- Adhoc or permanent - SME (Subject Matter Expert)
Executive Sponsor (SixSigma Roles)
- Business Leader or Senior Manager who ensure resources are available for training & projects, involved in periodic reviews, supports & addresses Six Sigma organizational issues - Advocate, defender, mentor, coach - Identify & select projects, Black Belts for project - sets goals, schedule, removes barriers - throughly understands SixSigma tools & educates
Control (DMAIC)
- Continuously measure the process & institute control mechanisms to ensure that variances are corrected before defects result - After setting up pilot runs and transitioning to production - develop, document, implement ongoing monitoring plan
DMAIC vs DMADV - Similarities
- Data intensive solution approaches - Use Six Sigma Methodologies - Implemented by GB, BB, MBB Team - Help meet business/financial bottom line numbers - Implemented with support of champion & process owners
Value
- Defined by customer - Japanese cars: reliable, quality, resale value, fuel efficiency, etc. - German cars: some of above along with PRIDE of ownership - Watches: Japanese vs. Swiss
Project Scope
- Defines boundaries of project - Focuses on constraints from cost & resources perspective - Result of brainstorming
Green Belt (SixSigma Roles)
- Employee who has been trained in the Six Sigma improvement method & will lead process improvement/quality improvement team as part of full-time job - assists Black Belt in functional areas - part-time work on projects with other jobs in functional area
Yellow Belt (SixSigma Role)
- Employee who has been trained in the basic to moderate Six Sigma improvement methodology, participant in process/quality improvement team - Assist green belt in functional area of project - Have jobs outside SS in functional area
Walter Shewart
- Father of statistical quality control - Brought together disciplines of statistics, engineering & economics
Black Belt (SixSigma Roles)
- Full-time team leader responsible for implementing process improvement projects within business to drive satisfaction & productivity levels - Back bone of culture who carries out actual digging - gets hands dirty - 100% dedication to fixing issues & improving processes
Analyze (DMAIC)
- Identify gaps between current performance & goal - Prioritize opportunities to improve - Identify sources of variation - Verify relationship & causality - other factors?
Steps to Drawing SIPOC diagram
- Identify key process activities - Identify outputs of a process & known customers - Identify inputs to a process & likely suppliers
Steps to Implement Six Sigma
- Identify opportunities - Define the project & write charter - Build team - Measure & Document 'As-Is' process - Analyze & identify waste - Optimize the flow & plan new process - Implement & validate the new process - Review & Re-run the new process - Document & Communicate the success
Kaizen & Kaizen Events (Lean tools)
- Japanese term that means gradual unending improvement by doing little things better, setting & achieving higher standards - 3-5 day breakthrough improvement - short timespan, usually cross-functional teams with mgmt. support
Standard Work (Lean tools) - Definition
- Jobs organized around human motion creating efficient system w/o waste - Reduce process variation - Assists in training new operators, workers
Improve (DMAIC)
- Optimize process based on analysis - Develop & Deploy implementation plan - Use Design of Experiments, technology, discipline - Create "To-Be" charts - Conduct FMEA (Failure Mode & Effects Analysis)
Process Owner (SixSigma Roles)
- Person who coordinates various functions & work activities at all levels and can make changes as required - Manages entire cycle to ensure effectiveness - Can be sponsor, champion or other
Define (DMAIC)
- Process improvement goals consistent with customer demand & company strategy - Who customers are, requirements, expectations for product & services - Project boundaries - process beginning & ending - Process to be improved, map process flow
Six Sigma Steering Committee
- Project Review and Selection - Team Selection - Primary Driver of Six Sigma Deployment in an organization - Company may have more than one
WHY Six Sigma?
- Provides BREAKTHROUGH improvement in customer satisfaction & shareholder value - proven methodology to solve problems - focus on the bottom line
Process Owners
- Responsible for execution & implementation of specific process - Formally recognized through documentation & title - May be SME
Value Stream
- Series of activities required to deliver product or service 3 components: - Flow of materials (movement of raw materials) - Transformation of raw materials into finished goods (Input to Output) - Flow of information required to support flow of materials (POs, work orders, etc)
Master Black Belt (SixSigma Roles)
- Six Sigma or Quality Expert responsible for strategic implementation in an organization - qualified to teach methods, tools & applications in all functions and levels - resource for statistical process control in processes - oversee 15-25 projects simultaneously - Change agent with 100% effort on process improvement, not the owner of any project
Standard Work (Lean tools) - 3 Components
- Standard Time - Standard Inventory - Standard Sequence
Pull System (Lean tools) - Benefits
- Timely, efficient material movement - Improved system control - Decreased carrying costs - Decreased downtime
WHEN to use Six Sigma?
- Unknown causes or situations - Complex situation with many variables - Problems are commonplace & not well defined
Process Stakeholders
- Vested interested in process & output - includes customers, suppliers, employees, investors, etc. - anyone impacted by process who's buy-in is needed
Problem Statement
- What needs to be improved - One sentence to define purpose of project - Focus on defining problem/opportunity that team will collectively work on - Helps to keep team together
Six Sigma Characteristics
-Deployment of statistical tools to eliminate or reduce variation, defects and waste from business process & result in better financial results - NOT theoretical exercise, NOT a quality program (though based on TQM)
SIPOC Diagram
A tool used by Six Sigma process improvement teams to identify all relevant elements of a process improvement project before work begins - snapshot view of process information drawn at a higher level - useful at start of project to provide info to project team before beginning
Project Mangement
ASQ - Application of knowledge, skills, tools, techniques to a broad range of activities to meet requirements of a particular project. ISM - Process of coordinating the organization, planning, scheduling, controlling, monitoring & evaluating of activities so that the objectives or a project are met General View - Discipline of planning, organizing, securing, managing resources to bring about successful completion of specific engineering goals & objectives
Pull System (Lean tools) - Definition
Activities of Supplier dictated by customer requirements, scheduling based on customer orders & usage - Materials "pulled" through system by demand - tool in retail
Philip B. Crosby - Historian
Author of 'Quality is Free' 'Quality without Tears' 'Let's Talk Quality' - "Zero defects" concept
Measure (DMAIC)
Create baseline on current process for future comparison - develop data collection plan - check sheets, histogram, pareto charts, scatter diagrams - use many sources to determine defect types & metrics - Benchmark
DMAIC
DEFINE - the project, goal, deliverables to customers MEASURE - current performance of project ANALYZE - determine root cause(s) of defect IMPROVE - process to eliminate defect CONTROL - performance of project
Other "Define for Six Sigma (DFSS)" Approaches
DMADOV - ...Design, Optimize, Verify DMEDI - ...Explore, Develop, Implement IDOV - Identify, Design, Optimize, Validate
DMAIC vs DMADV - Differences
DMAIC is Existing Process, DMADV creates process Customer satisfaction vs process
DMADV
Define - end product or service needed by customer Measure - customer needs and specs Analyze - options to meet or exceed customer needs Design - process to meet customer needs Verify - new design to ensure meeting customer needs
W. Edwards Deming
Deming Cycle - PDSA - Plan, Do, Study (Check), Act
Kaoru Ishikawa - Historian
Developed cause and effect diagram
Project Charter
Document that states the purpose of the project Lists team members Developed in various ways using firm template Identify Customer first and get sponsor approval before starting
Six Sigma Roles
Executive Sponsor - commit & promote SS Process throughout organization Champion - help black belts in projects Process Owner - stakeholders of process Master Black Belt - trainer, mentor, guide Black Belt - Work full time on various projects Green Belt - assist Black Belt Project Team Member - may be Subject Matter Expert (SME)
Genichi Taguchi - Historian
Fractional factorial designed experiments & stressed the concept of robustness
Background of Lean - history
Henry Ford's Model T automobile Toyota's continuous improvement post-WWII
Theory of Constraints - Process
Identify - weakest link Exploit the process - Kaizen event - make as efficient as possible, improve constraint Subordinate - adjust other processes to match constraint Elevate - revision, elevation may be needed to improve system (with added costs) Repeat - start over and identify new constraint
Visual Factory (Lean tool)
Impart information through visual cues & communication tools - machine lights, counting metrics - leads to higher productivity, safety, teamwork, pride
Joseph M. Juran
Juran trilogy - Quality Planning, Control, Improvement
Process Inputs
Man Material Methods Mother nature Management Measurement systems
Poke-Yoke Device (Lean tools)
Mistake proofing - prevents incorrect parts from being made or assembled, identify flaws or errors easily
Armand Feigenbaum - Historian
Originated concept of Total Quality Control and wrote book of same name 3 steps - Quality Leadership, Modern Quality Technology, Organizational Commitment
OEE
Overall Equipment Effectiveness = Equipment Availability x Performance x Quality of Products
Forms of Waste
Overproduction - faster pace than needed, extra or oversize equip Inventory - additional material handling, more rework when changes required Transportation - unnecessary movement Over-processing - redundancy, extra forms, etc Motion - poor facility layout Waiting - idle time Defects - additional repair/service, extra manpower
What is Lean?
Producing maximum sellable products or services at lowest operational cost while optimizing inventory levels
PMI - 1969 - PMBOK
Project Management Body of Knowledge
Basic Stages of Project Management
Project: Initiation stage Planning Execution Monitoring & Control Completion
Total Productive Maintenance (Lean tools)
Series of methods pioneered by Nippondesnso (Toyota group) to ensure every machine in a production process always performs req'd task so production never interrupted - reduce downtime to increase OEE - requires cross-training workers
Process Outputs
Services and Products - Hardware, Software, Systems, Data, Information
Process
Set of specific interrelated work activities characterized by specific inputs & value added tasks making up a procedure leading to specific set of outputs - sequence of steps using inputs to output product or service - has start point and end point with potential subprocesses
5S - Seiso
Shine / Sweep
What is Sigma and Six Sigma?
Sigma - 18th Letter of Greek Alphabet Six Sigma - Business Philosophy focusing on continuous improvement - mindset - organized process for structured analysis of data - 3.4 PPM - 3.4 defects per million - measure of variability representing optimum level of quality for an organization
Project Management & Lean Six Sigma
Similarities: Focus on Customer/Stakeholder, DMAIC vs PM Stages Unique Features: Focus on Statistical Data Focus on Waste Focus on Time vs. Quality
5S - Workplace Organization (Lean tool)
Sort - eliminate what isn't needed Straighten - place for everything, all in place Shine - cleaning & ways to keep clean Standardize - Maintain & monitor first 3Ss Sustain - stick to the rules
5S - Seiri
Sorting out
5S - Seiketsu
Standardizing
5S - Seiton
Straighten
SIPOC
Supplier Input Process Output Customer
Elements of SIPOC Diagram
Suppliers - providers of inputs/resources to ensure process is executed as planned Inputs - Resources required by process to obtain output Process - description of activities involved Outputs - deliverables from process Customers - Organization/Individuals that receive the output from the process
5S - Shitsuke
Sustain / Self-discipline
Theory of Constraints - Definition
System approach focusing on weakest link of chain - Weakest component is the constraint TOC - measures effect of local decision on entire system's output, inventory, expense
Project Management vs Program Management
Temporary vs Permanent Short term vs Long term Scale of Activities Scale of Work involved
Types of Activities in a Process
Value Added Business Value Added Non-Value Added
Visual Display Set-up Time
World Class Time Our Best Time Our Last Time
Six Sigma Belts
Yellow Belt - knows basic analytical tools & assist GB in projects Green Belt - knows basic analytical tools & delivers focused projects Black Belt - leader of team and lays emphasis on application & analysis Master Black Belt - trainer of BB, coach of projects, leads project reviews, understands adv. statistical theory