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