Black Belt Six Sigma | Unit 8

implementing Six Sigma and the Organization Enterprise wide deployment

- Understand who your customers are and what is important to them - Understand customer feedback through the Voice of the Customer and determine the requirements for your product - Prioritize issues related to your product - Determine internal processes and what causes variation - Determine the causes of defects - Develop ways to address defects - Develop metrics to standardize and measure the changes made in the process

Common "Lean" tools used

Kaizen Poka yoke Takt time 5 Whys 5S Spaghetti diagram Touch time Work times Kanban Theory of Constraints Value Stream Maps Cycle times The main thrust of the Lean process is to get the most streamlined process within a production environment. • It wants to create the most consistently "good product" in the most efficient way.

Understanding Lean

Lean Six Sigma combines the process improvement benefits of the Six Sigma method with the waste reduction benefits of Lean. Lean seeks to reduce waste in these forms: - Elimination of defects - Continuous improvement - Elimination of non-value added activities - Use of Kanban pull systems - Flexibility to respond to variation

Lean enterprises 2

Lean enterprise eliminates waste and non value-added activities. Lean focuses on delivering more value to the customer and addressing the voice of the customer. It creates efficiency based on optimizing flow in a process and empowers employees to improve their work. Lean always asks, "how can we get better?" • Lean does not eliminate people or employees, is not a shortcut, and does not micromanage. Lean focuses on removing the non value-added delay, waste, and rework from your processes. Lean can be used in any industry or business to improve speed, quality, and cost. When implemented properly, Lean Six Sigma focuses on results, not training.

Lean enterprises

The Lean enterprise includes all types of enterprises including manufacturing, service, transactional, product and process design, as well as innovation. • Six Sigma and Lean have over a 20-year history in developing the Lean enterprise and creating culture, process improvement tools, methodology, and methodology for quality improvement. The results from Six Sigma and Lean typically include: Increased profits Lower operating costs Decreased costs Benefits of the Lean Enterprise Less overhead Improved delivery Increased customer satisfaction Better supplier relations Higher sales Less inventory

measurement systems used in the Lean Enterprise

require modification to establish benchmarking for performance comparison and uncover best practices for gaining a competitive advantage. • Standardization of metrics helps to collaboratively measure, control, and manage processes. Sample metrics for an enterprise such as supply chain include: - Return on working capital - Perfect order fulfillment - Order fulfillment cycle time - Supply chain management costs

What is Lean?

• Lean is a manufacturing process that was developed by Toyota in 1988. • It is based upon 2 key principles - the removal of irregularity and the removal of irrelevance. That is, attempting to get uniformity within production and removing wasteful processes. It uses a whole set of tools: - Kanban - enabling just-in-time delivery within production, so that stock is not held waiting to be used - TIMWOOD - an acronym for Transport, Inventory, Motion, Waiting, Overproduction, Over processing, and Defects; all areas for examination of savings that are probably the most commonly referenced.

Lean/Six Sigma

• Six Sigma is used to reduce error rate and process variability, and Lean is used to reduce waste and non value-added activities. • The two work in an interrelated manner, because a high error rate can lead to excessive waste, and excessive waste can lead to a high error rate. By applying both, organizations can address both waste and errors.

Goals of Lean

• The value of Lean begins with identifying activities to add value to processes or services and making sure that value-added activities are performed effectively and efficiently. • By beginning with waste removal, Lean processes are able to build in synchronized activities which minimize unnecessary or excessive activities. • Once processes have had waste removed, Black Belts typically review performance and design to reduce error rates and variability, thereby reducing waste and non value-added activities. These are the two main goals of Lean.