1

Principles of Lean Six Sigma

Overview of Lean
Manufacturing and Six Sigma
Methodologies
A
Lean Enterprise
Presented by:
Oscar Longo
2
Introduction
Todays manufacturing and business
environments are reaching a point that
competition for survival and market share is
an obligation.
Tracking the global economy will show that
being good is not enough, therefore each
organization really strive for excellence if
want to stay in the market.

Business Facts
!very single organization is
looking for one single
outcome"
#
Business Facts
PROFIT
$
Business Facts
%&'()T is not a single concept but comes
with many important implications*
+ %, %rocess excellence
+ &, &esources -anagement
+ ', 'riented to a .oal
+ (, (inancially /trong
+ ), )nnovative 0 to stay ahead of competition
+ T, Timely deployment of strategies
1
Business Facts
The most traditional
definition of
PROFIT""..
2
Business Facts
$$$
3!T/ -45!
-'6!7
$$$
89T :' )T
&).;T
<
How we make PROFIT
)n order to be a leader, most companies are
realizing that traditional management,
manufacturing processes, and other historic
approaches, are not enough.
-ore effective methods are needed*
+
/ix /igma
+
3ean -anufacturing
=ith origins in the Toyota %roduction
/ystem, is a way of living in the business
environment.
>
Histor of !anufacturing
-ade to customer spec
/ingle piece mfg" each product uni?ue
@ariable ?uality
3ittle inventory
;igh cost " made for the rich
Craft
Craft Craft
Craft
)nterchangeable parts 0 =hitney

:ivision of labor 0 Taylor

4ssembly lines 0 (ord

3abor strife
Mass Production
Mass Production Mass Production
Mass Production
;igh variety
/mall batch sizes

%%- ?uality

!ngaged workforce
The Lean Enterprise
The Lean Enterprise The Lean Enterprise
The Lean Enterprise
1A
Recogni"e a need to c#ange and $e
a$le to do PROFIT%
Process Analysis is the foundation
Process Analysis is the foundation
toward achiein! Process E"cellence#
toward achiein! Process E"cellence#
How we make PROFIT
11
&e need to '#ange to make PROFIT(
&e need to '#ange to make PROFIT(
) need for c#ange is usuall c#aracteri"ed $*
+ualit is a ,+%)%- department responsi$ilit
Large production lots
Large centrali"ed stores
'ustomer dissatisfaction
.normous part and process /ariation
Set0up measured in #ours instead of minutes
Order entr times measured ot#er t#an in minutes
Product margins eroded $ increasing operating costs
./er0increasing competiti/e pressures
12
&# '#ange (
&# '#ange (
1eed for c#ange is a STR)T.2I' ISS3. w#ic#
an and e/er !anufacturer must address*
+ualit 0 How to impro/e it
'ost 0 How to control it
On0time 4eli/er 0 How to ensure it
In ot#er words5 How we make PROFIT(
Failure to impro/e in all t#ree areas means a loss
of competiti/eness in toda6s glo$al marketplace%
1
&# '#ange (
&# '#ange (
Lean Linking
is
Forward Thinking !

1#
&# '#ange (
&# '#ange (


Lean
Lean
Linking
Linking




is
is


Forward Thinking !
Forward Thinking !
Do not become the dinosaur of
Do not become the dinosaur of
your industry
your industry

1$
./olutionar /s% Re/olutionar '#ange
./olutionar /s% Re/olutionar '#ange
Ha/ing a forward looking perspecti/e on continuous
impro/ement is a re7uirement of t#e competiti/e
marketplace and is t#e first step in $ecoming world0
class%
4O 1OT set incremental impro/ement goals o/er pre/ious
performance5 rat#er 0
T#ink of w#ere we need to $e*
'ontinuall declining costs
8ero defects
!inimal in/entories
Full satisfied customers
11
&#at can we expect wit# Lean T#inking(
&#at can we expect wit# Lean T#inking(
9o/er : ears;
9o/er : ears;
4efects reduced by 2AB per year
4eli/er Lead Times reduced by more than 2$B
On Time 4eli/er impro/ed to >>CB
Producti/it Dsales per employeeE increases of
1$,2$B per year
In/entor Dworking capitalE reductions of more than
2$B
Return on )ssets impro/ement of 1AABC
12
)nal"ing and Impro/ing Processes
)nal"ing and Impro/ing Processes
4n integrated approach to utilizing Fapital, -aterials, and
;uman resources to produce Gust what is needed, when it is
needed. )n the amount needed with minimum -aterials,
!?uipment, 3abor and /pace.
A Lean $efinition
A Lean $efinition A Lean $efinition
A Lean $efinition
)dentify and eliminate waste
D!34)E.
Oerridin! Principle
Oerridin! Principle Oerridin! Principle
Oerridin! Principle
%hat&s in a 'a(e # # #
%hat&s in a 'a(e # # # %hat&s in a 'a(e # # #
%hat&s in a 'a(e # # #

Toyota %roduction /ystem, H.).T., 3ean -anufacturing,

:emand (low Technology, 5aizen, is really %rocess 4nalysis I
1<
How we make PROFIT 0 TPS
1>
Building Blocks of T#e Lean
Building Blocks of T#e Lean
.nterprise
.nterprise
Continuous Improvement
Teamwor
k
Rewards /
Recognition
Training
2A
Continuous Improvement
Value
Stream
Mapping
Teamwor
k
Rewards /
Recognition
Training
Building Blocks of T#e Lean
Building Blocks of T#e Lean
.nterprise
.nterprise
21
uick
C!angeover
Standard
"ork
#atc!
Reduction
La$ou
t
Mistake
%roo&ing
'S S$stem
%ro(ec
ts
Visual
Management
%)*
Cellular / +low %ull / ,an-an T%M
Continuous Improvement
Value
Stream
Mapping
Teamwor
k
Rewards /
Recognition
Training
Building Blocks of T#e Lean
Building Blocks of T#e Lean
.nterprise
.nterprise
22
How we do PROFIT < $ an Operational
How we do PROFIT < $ an Operational
.xcellence !ission Statement
.xcellence !ission Statement
4e/elop t#e a$ilit*
To recogni"e and identif waste
To #a/e to courage to call it waste
To #a/e t#e desire to eliminate it
.liminate t#e waste
Trul understand t#at waste
Raises costs
Produces no corresponding $enefit
T#reatens all of our =o$s
2
To do PROFIT we can use t#e Lean Six
To do PROFIT we can use t#e Lean Six
Sigma Strateg >
Sigma Strateg >
for turning manufacturing and business
processes into competitive weapons.
Producing what is needed, when it is
needed, with a minimum amount of
materials, equipment, labor and space.
Prime Directive - to continually seek out and
eliminate waste and wasteful practices.

2#
T#e Lean Six Sigma Strateg >
T#e Lean Six Sigma Strateg >
with these !ain "oals#
$%& '!P()*+ ,-./'01 $%& '!P()*+ ,-./'01
$2& +/'!'3.0+ 4.50+ $2& +/'!'3.0+ 4.50+
$6& (+7-8+ /+.7 0'!+ $6& (+7-8+ /+.7 0'!+
$& (+7-8+ 0)0./ 8)505 $& (+7-8+ 0)0./ 8)505
4ith an overriding principle#
5afety %
5afety %
st st
9
9
to continually seek out and eliminate unsafe operating
conditions and practices in every aspect of our
:usiness.

2$
T#e Lean .nterprise is a Strateg >
T#e Lean .nterprise is a Strateg >
with these !ain "oals#
$%& '!P()*+ ,-./'01
$%& '!P()*+ ,-./'01
$2& +/'!'3.0+ 4.50+
$2& +/'!'3.0+ 4.50+
$6& (+7-8+ /+.7 0'!+
$6& (+7-8+ /+.7 0'!+
$& (+7-8+ 0)0./ 8)505
$& (+7-8+ 0)0./ 8)505
4ith an overriding principle#

to continually seek out and eliminate unsafe operating conditions and

practices in every aspect of our :usiness and every process within our
)perations and to constantly, and consistently, enhance ;ealth<4elfare,
5afety and +nvironmental concerns and issues.

21
&it# a well0planned implementation5
o/erall e"pected RE)*LT) ma include a >
9wit#in ?@ mont#s;
A:B to :CB reduction in lost timeD
safet0related incidents and accidents
?:B to ACB decrease in scrap and rework
@:B to ECB reduction in total ccle time
T#e Promise of Lean Six Sigma
T#e Promise of Lean Six Sigma
22
Lean Six Sigma < Benefits%
T#e Benefits )re T#ere For T#e Taking
The 8enefits 4lways )nclude )ncreased -arket /hare, 3owered Fost ;igher
%rofits 4nd ;appier Fustomers D4nd /hareholdersE
J3eanK )s The 'nly 4nswer 5nown That %rovides These 8enefits
J3eanK Never Fails If You (R-E-A-L-L-Y) Do It
/aying J3eanK )s 6ot :oing 3ean
!very /uccessful 8usiness That Fompetes )n 4n 'ver,capacity 'r %rice,
sensitive -arket )s :oing J3eanK =hether They 5now )t 'r 6ot
2<
Lean Six Sigma
%hilosophy and 5ey Foncepts
+ T#e : core principles of Lean
+ 4efine /alue0added and non0/alued added
acti/it
+ 4efine t#e F most common tpes of waste
+ and t#eir causes%
+ Re/iew a sstematic approac# to disco/er
waste wit#in a process%
2>
Learn t#e : 'ore Principles of Lean*
?; Specif /alue in t#e ees of t#e customer
@; Identif /alue stream and eliminate waste
A; !ake /alue flow at pull of t#e customer
E; In/ol/e G empower emploees
:; 'ontinuousl impro/e in pursuit of perfection
Lean Six Sigma
A
Customer perceives value
Customer perceives value
+alue Added Actiity
4n activity that changes the size,
shape, fit, form, or function of material
or information Dfor the first timeE
to satisfy the customer.
'on,+alue Added Actiity
Those activities that consume time or
resources, but do not add value in the
eyes of the customer.
Lean Six Sigma
1
Halue )dded
+ 4ny activity or operation performed that helps transform a product or service
from its raw state into its finished form.
+ Fompleted right the first time.
+ 4ny activity customer is prepared to pay for. 4ctivity re?uired to ensure that a
product or service is delivered in conformance to specification.
1on0Halue )dded
+ 4ny activity that doesnt help to transform a product or service into its final
form. 4ctivity not performed right. 4ctivity customer not willing to pay for.
+ This includes*

9nnecessary process steps

-ovement of inventory, paperwork, etc.

&e,work, corrections, etc.

/torage between operations, batching inventory

=ait times, delay times, idle times

Lean Six Sigma 0 4efinitions
2
Lean Six Sigma 0 F most common wastes
Identif and reduce*
+ 4efects Drepair, rework, scrapE
+ Overproduction DinventoryE
+ Transportation DconveyanceE
+ &aiting D?ueue timeE
+ Inspection Dreliance on mass inspectionL verificationE
+ !otion Dparts, paper, peopleE
+ Process, itself Dover,processing, long cyclesE
, ,'ommonl referred to as t#e F&6s>- 'ommonl referred to as t#e F&6s>-
IF common wastes of production IF common wastes of production
9S#ingo; 9S#ingo;
, ,'ommonl referred to as t#e F&6s>- 'ommonl referred to as t#e F&6s>-
IF common wastes of production IF common wastes of production
9S#ingo; 9S#ingo;
!DA " #o#-value a$$e$ activit% (&aste)
!DA " #o#-value a$$e$ activit% (&aste)
'
'

!otion
&aiting time
O/erproduction
Processing time
4efects
Inspection
Transportation
Pro$lemsD 'auses
Incorrect laouts
Lack of proximit of mac#ines
Off0line resources
&aiting workers5 mac#ines5 materials
Long set0ups and lead times
Large $atc#es5 raw material stocks
Hig# &IP5 finis#ed goods stocks
!aking for t#e sake of it
Ignoring customer demands
Long ccle times0 process5 itself
Reduced efficienc0 o/er processing
Hig# o/erall lead times
Long delas for rectification
'ostl rework
4issatisfied customers
)ppro/als of appro/als
Hig# num$er of /erification steps
Reliance0 !ass inspection tec#ni7ues
3nnecessar mo/ement
.xtra #andling
Tpes of &aste
9F&6s;
Halue
)dded
1on0 Halue )dded5
$ut necessar
&aste
Focus on
reduction
P
e
o
p
l
e
P
r
o
c
e
s
s
P
r
o
d
u
c
t
T#e 'auses of &aste in most Processes
T#e 'auses of &aste in most Processes
#
Pro$uct Lea$-Time
Pro$uct Lea$-Time
Raw
Materials
Finished
-oods
Halue )dded
Time
1on0 Halue
)dded Time
TI!.
Lean Six Sigma
$
Pro$uct Lea$-Time
Pro$uct Lea$-Time
J:B 1on0 Halue )dded
J:B 1on0 Halue )dded
Lean Six Sigma
Historicall5 Historicall5
impro/ement efforts impro/ement efforts
#a/e $een focused #ere% #a/e $een focused #ere%
1
Pro$uct Lea$-Time
Pro$uct Lea$-Time
%hereas. Process Analysis actiities
%hereas. Process Analysis actiities
should
should
Focus here , the Eli(ination of %aste
Focus here , the Eli(ination of %aste
/M*$A0
/M*$A0
J:B 1on0 Halue )dded
J:B 1on0 Halue )dded
Lean Six Sigma
2
I$e#tif%i#( )aste
I$e#tif%i#( )aste
=aste can take many formsM some causes of the
most common forms of waste include*
lack of adherence
unnecessary approvals or signatures
reviews of reviews
multiple hand,offs
transportation
long setup time
correction, and
over,production
Lean Six Sigma
<
I$e#tif%i#( )aste
I$e#tif%i#( )aste
'ther causes of waste may include*

poor maintenance

lack of training

poor supervisory skills

ineffective production planningL scheduling

lack of workplace organization

/upplier ?ualityL reliability

)n most cases, inventory is wastefulM more
importantly, in/entor hides all sorts of
problems in the company
Lean Six Sigma
>
Learn to Recogni"e t#e Tpes of &aste
From Taiic#i O#no5 )rc#itect of t#e Toota Production Sstem
P.OPL.
TKP.S
OF
&)ST.
Processing
!otion
&aiting
Fixing
4efects
!aking Too
!uc#
!o/ing
T#ings
In/entor
+
3
)
1
T
I
T
K
+
3
)
L
I
T
K
O/erproduction D !aking To !uc#
Ties up capital, diverts production from
customer re?uirements, loss of inventories
Transporting D !o/ing T#ings
9nnecessarily increases production time,
extra =)%
3nnecessar Stock D In/entor
Ties up capital, risk of changes
&aiting
:ecreases productivity, wastes personnel
resources
3nnecessar !otion
)ncreases production time, unnecessary
operator motion
Processing
%oorly designed L incapable processes
4efects
/crap, rework, returns
Lead ti(e reduction is achieed 1y identifyin! and eli(inatin! waste
#A
I#ve#tor% *i$es Pro+lems
I#ve#tor% *i$es Pro+lems
/ong
5et-up
0ime
Poor
=-5
,uality
Problems
/ine
'mbalance
7own-
0ime
*endor 7elivery Problems
Poor
5cheduling
Poor
8ommunication .bsenteeism
Poor
Process
8apability
&aw -aterial
(inished .oods
2our Co(pany 2our Co(pany
Lean Six Sigma
#1
Process A#al%sis to t,e Rescue
Process A#al%sis to t,e Rescue
" we have only begun to deal with issues involved
in trying to tie everything together for a whole,
system approach. /ome of the problems that
continue to confound us are the following*

T#e wa manufacturing works wit# Sales makes

sc#eduling and running t#e plants difficult%

&e compound t#e a$o/e pro$lem $ t#e wa we order from

suppliers%

La$or and management still don6t trust eac# ot#er%

T#e wa we measure performance doesn6t pro/ide information useful

to running a plant and often encourages wrong decisions%
Lean Six Sigma
#2
/ook at the 3 Real Things in every operation

!aterial >low
(or Business Steps i.e. transactional processes)

'nformation >low ?data&

4ork-in-process ?could be both&

Lean Six Sigma < How to 4isco/er &aste
#
Lean Six Sigma < How to 4isco/er &aste
Ask what@
What is the operation doing?
Ask why@
Why is the operation necessary?
Ask why at least 5 times to lead you to the root cause
Everything that is not ork is aste
!nce you kno the "unction# you can identi"y as
aste anything that does not e$ecute that "unction
%ra"t an improvement plan&
Ask how@
##
!e on the look"out for these
3 #a$or contributors

)verburden< )verdoing

-nevenness

Process methods
Lean Six Sigma < How to 4isco/er &aste
#$
!e on the look"out for these
3 #a$or contributors

)verburden< )verdoing %muri&

" waste caused by how work and tasks are designed

-nevenness %mura&
" waste caused by poor 'uality %process unpredictability&

Process methods %muda&

" waste caused by (D)T *+#P
Lean Six Sigma < How to 4isco/er &aste
#1
Lean Six Sigma 0 &#at actions must we take(
%e (ust 3
+
decrease ccle times
+
reduce tra/el distances
+
standardi"e our processes
+
reduce scrap5 rework and waste
+
impro/e all of our $usiness processes
+
reduce t#e /ariation in our sc#edules
+
pro/ide a constant5 stead suppl of
+
parts to production5 assem$l5 and test
#2
Lean Six Sigma 0 &#at actions must we take(
%e (ust 3
+
design products to matc# a sta$le5
+
standard production process
+
gain !arket s#are
0 and 0
+
increase our competiti/eness L
+
'ow 4 how do we !et there 55 'ow 4 how do we !et there 55
#<
Lean Six Sigma
3tili"e t#e process ,4!)I'- > 3tili"e t#e process ,4!)I'- >
94efine5 !easure5 )nal"e5 Impro/e and 'ontrol; 94efine5 !easure5 )nal"e5 Impro/e and 'ontrol;
+
3nderstand t#e Pro$lem
+
Form t#e Team
+
3nderstand t#e Process
+
2at#er Process 4ata
+
)nal"e t#e Process
+
Identif possi$le 'orrecti/e )ctions
+
ScreenD .xperiment to select $est action
+
Implement )ction
+
Herif )ction
+
Sustain Impro/ement
#>
T#e Lean Six Sigma is a Strateg >
T#e Lean Six Sigma is a Strateg >
for turning manufacturing and business
processes into competitive weapons.
Producing what is needed, when it is
Producing what is needed, when it is


needed, with a minimum amount of
needed, with a minimum amount of


materials, equipment, labor and space.
materials, equipment, labor and space.
Prime 7irective - to continually seek out and
eliminate waste and wasteful practices.

Lean Six Sigma
$A
SIX SIGMA
$1
Six Sigma
/ix /igma is the term applied to the
application of the :-4)F methodology.
)t is a structured, disciplined, rigorous
approach to process improvement.
The five steps link to each other into a
logical se?uence, creating an infinite
loop for process improvement.
The goal of the method is to achieve .#
defects per million parts Dor
opportunities of doing it wrongE, most
commonly known as 1 /igma.
$2
Six Sigma
)mplementation of /ix /igma re?uires
commitment of the organization and
team leaders.
)s ?uite common to see, 7ellow 8elts,
.reen 8elts, 8lack 8elts and too often
the "/oft 8elts".
8eing the last ones the ones obstructing
the implementation.
$
Six Sigma
)f the organization you work for has a /ix /igma
%rogram in place, not necessarily guarantee the
success of the organization. )t depends on good
teams, good steering committee and champions
as well as management support.
)n any /ix /igma program, keeping the right people
engaged towards success is the key.
$#
Six Sigma < 4.FI1. Stage*
The obGective in this area is to create a clear
statement, a Team Fharter, that depicts the
success story to be created.
/hows a high level description of the
processes being improved and the expected
achievements.
/how how your customers will be impacted
The most critical stage to catch the support
from your organization.
$$
Six Sigma < !.)S3R. Stage*
The whole obGective here is to gather data and
information that will help you in pin pointing the real
causes of the problem being resolved.
;ere you will know your current situation and the
expectation on how much can be improved.
)nformation here, helps to refine your define stage if
needed.
/et up the basis for the next stage*
$1
Six Sigma < )1)LK8. Stage*
The obGective here is to get the data and
use statistical tools to identify the root
causeDsE, create a hypothesis Dor
several onesE and prove them out.
The ones that prove to be the real
causes, are the ones needed to be
addressed on the next stage.
$2
Six Sigma < I!PROH. Stage*
The target id to implement actions to
correct the problems identified on the
previous stage.
These actions need to be tested and
measured to verify that are effective.
The effective methods set the basis for
the next stage.
$<
Six Sigma < 'O1TROL Stage*
The target in here is to turn the solutions found into a rentable
change in the processes.
These changes are to monitor the performance, maintain the
benefits from the solution implemented and set the ground for
new improvement opportunities as the new data being
collected feeds the :-4)F cycle for another proGect.
)n the regulated industry, theses changes might re?uire, new
procedures D/'%E and @alidations to ensure compliance to
)/' and (:4 regulations as applicable.
$>
Six Sigma < Summar
!ach single stage relies on the previous one for
a comprehensive effect.
Futting corners is prohibited in /ix /igma.
4ll data generated and used must be kept in an
organized fashion, might be helpful when the
:-4)F cycle gets you to a problem where
that particular information was already
gathered.
1A
Six Sigma < Tool Box
TOOL 1)!. 4 ! ) I ' TOOL 1)!. 4 ! ) I '
4ffinity :iagram N N (re?uency %lots N N N N
8rainstorming N N (-!4 D(ailure -ode O !ffect 4nalysisE N
8usiness Fase N .age & O & N
Fause,and, !ffect :iagrams N ;ypotesis Tests N
Fharter N t,test
Fonsensus N paired t,test
Fontrol Fharts N N N N 46'@4
Fontinuous data Fhi /?uare
)ndividuals 5ano -odel N
N,8ar, & %lanning Tools N
!=-4 .antt Fharts
:iscrete data %lanning .rid
p,np %areto Fharts N N N
c,u %rioritization -atrix N N
Fritical to Puality Tree N %rocess Fapability N N
:ata Follection (orms N N N N %rocess /igma N N
Fheck /heet Puality Fontrol %rocess Fhart N
%fre?uency %lot Fheck /heet &egression N
Fonfirmation Fheck /heet &olled Throughput 7ield N
Foncentration :iagram /ampling N N N N
:ata Follection %lan N N N N /catter %lots N
:esign of !xperiment N N /)%'F D/uppliers, )nputs,%rocess,'utputs,FustomersE N
(ull (actorial /takeholder 4nalysis N N
&educed (ractions /tandardization N
/creening :esigns /tratification N N N N
%lacket,8urnham :esigns /tratified (re?uency %lots N
-ore than Two 3evels Time /eries %lots D&un FhartsE N
(low :iagrams N N N N N @'F D@oice of the customerE N
'K'L. ST)2. 'K'L. ST)2.
11
Six Sigma 0Summar
4fter each stage is completed,
demand a meeting a with the
people that must know, the
progress is your best selling tool to
keep getting the support.
:ont be shy 0 your champion is
there to assist you, the 8lack 8elt
is there to help youM no one is an
expert on all the statistical tools,
so ask for help before assuming
incorrectly.
12
Lean Six Sigma
/ix /igma alone is not 3ean
-anufacturing, is Gust one tool,
that combined with statistics can
give you solutions.
9sing the :-4)F cycle and using
other 3ean -anufacturing tools
instead of /tatistics can also
produce results.
TKP. OF
&)ST.
&)ST.
R.43'TIO1
)PPRO)'H
!.THO4
4.SIR.4
R.S3LT
/tandard =ork
=orkplace
'rganization
5aizen
=orkplace
-anagement
Hust,in,time
!rror
%roofing
%rocessing
-otion
=aiting
=hat
7ou
6eed,
=hen
7ou
6eed
)t
;ighly
!fficient,
/afe
=ork
4reas
=ith
;igh
'utput
.ood
Puality
)nventory
-oving
Things
-aking Too
-uch
(ixing
:efects
3eveling
5anban
Puick /etup
%reventive
-aintenance
:etection
=arning
%rediction
%revention
')T.2ORK
OF &)ST.
%!'%3!
P946T)T7
P943)T7
FO'3S
POI1TS
=ork 8alance
=)%
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the other tools
Lean Six Sigma0 )pproac#es and Tec#ni7ues
1#
5
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Mai"en N 'ontinuous Impro/ement
J5aiK R /mall, Fontinuous Fhange
JQenK R 'ngoing Fhange (or The
8etter
/tructured, (ocused, Foached,
-andated O &e?uired 4ctivity To
Fompel !very !mployee To
%articipate )n )mproving The Puality
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-icro,processes
6ot 4 J/uggestion 8oxK %rogram
Building Blocks o" 'ean (roduction
)ust*in*time
Standard operations
+istake*proo" processing
(ull production , single piece
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-ellular manu"acturing
.isual orkplace
5aizen is the Jtransport vehicleK
to import these building blocks
of lean production
These concepts are e8ually applica1le to the factory floor and within the office
11
+
&eGect the current situation
+
5eep an open mind to change
+
-aintain a positive attitude
+
-ake problems visibleM make
the workplace visual
+
6ever leave in silent
disagreement
+
%ractice mutual respect every
day
+
'ne person, one voice , no
position or rank

Theres no such thing as a dumb

?uestion

Take action over excuses and

make actual improvements now

.et on base rather than go for the

long ball Dsmall progress vs. allE

9se your head rather than your

money

:estroy myths of fixed production

)ts a never ending task

H)H. F31 and O3ST 4O ITL

Lean Six Sigma < 2uides for Mai"en
12
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4lso called J-aterial and )nformation (low -appingK
9sed by Toyota -otors to show both current and ideal states
as part of the lean implementation process
:iscussed in ,Lean T#inking-
(urther developed and
documented by the 3ean
!nterprise )nstitute of
8rookline, -ass.
,Learning to See-
?JJP
?JJQ
Lean Six Sigma < S#ort Histor
1>
Total Halue Stream
S3PPLI.RS KO3R PL)1T OR B3SI1.SS '3STO!.R TO .14 3S.R
All the actions. 1oth alue added and non,alue added. currently
re8uired to 1rin! a product fro( raw (aterials to the custo(er#
All the actions. 1oth alue added and non,alue added. currently
re8uired to 1rin! a product fro( raw (aterials to the custo(er#
Lean Six Sigma < &#at is Halue Stream(
2A
4 value stream is all the actions Dboth value added and non,value
addedE currently re?uired to bring a product Dor transactionE though the
main flows essential for every productL service* from raw materialL
Dcustomer needE, through all the re?uired steps, then 0 back to the
arms of the customer.
Taking a value stream perspective means working on the
big picture, not Gust individual processes, and improving
the whole, not Gust optimizing the parts.
T'T43 @439! /T&!4-
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Lean Six Sigma < Halue Stream Perspecti/e
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'apture all times5 7uantities
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Lean Six Sigma < Halue Stream !ap
22
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9i! Picture 9i! Picture e"a(ple e"a(ple
Lean Six Sigma < Halue Stream !ap
2
+
To understand the current situation , The
Jbig pictureK point of view DTo use as a tool to
improve the whole vs. optimizing the parts"E
+
!xposes sources of waste , not Gust the waste
+
/hows linkage between information flow and
material flow
+
(orms the blueprint to identify areas of
improvement
Lean Six Sigma < &# do Halue Stream !apping(
2#
+
)t helps visualize more than Gust the single,process level, i.e.
assembly, welding, etc., in production. 7ou can see the whole
flow.
+
)t helps to see more than waste. -apping helps to see the sources
of waste in your value stream.
+
)t provides a common language for talking about manufacturing
Dand transactionalE processes.
+
)t makes decisions about the flow apparent, so you can discuss
them. 'therwise, many details and decisions in your area Gust
happen by default.
+
8y adding data, it ties together lean concepts and six sigma
techni?ues, which helps you avoid Jpet proGectsK.
Lean Six Sigma < &# do Halue Stream !ap do for us(
2$
)t forms the basis of an implementation plan. 8y
helping you design how the whole door,to,door flow
should operate , a missing piece in so many lean
efforts , value stream maps become a blueprint for
improvement. )magine trying to build a house without
a blueprintI
+
)t shows the linkage between the information flow
and the material flow. 6o other tool does this.
Lean Six Sigma < Halue Stream !ap is an .ssential Tool
21
)t enhances the ?uantitative tools and layout diagrams
that produce a tally of non,value added steps, lead
time, distance traveled, the amount of inventory,
and so on.
+
@alue stream mapping is a ?ualitative tool by which
you describe in detail how your facility should
operate in order to create flow. 6umbers are good
for creating a sense of urgency or as beforeL after
measures. @alue stream mapping is good for
describing what you are actually going to do to
affect those numbers.
Lean Six Sigma < Halue Stream !ap is an .ssential Tool
22
Steel
Recd
Parts
Stocked
Components
machined
Plate Steel
burned
Structural
Steel Sawed
Steel
stocked
Weld Shop Paint Shop
Elect/Mech Parts
Recd
Blasting Booth
Sand Bast
Mech parts to
Mech Assembly
Staging
Parts
stocked
nspection
Mech
Assembly
Elect parts to
Elect Assembly
Staging
Elect
Assembly
nspection Run !est Crating Shipping Warehouse
Ship to
Customer
Steel "abrication Process #Current State$
Can you identi%y areas %or impro&ement'
Lean Six Sigma < Process !ap )nalsis
2<
Steel
Recd
Components
machined
Plate Steel
burned
Structural
Steel Sawed
Weld Shop Paint Shop
Elect/Mech Parts
Recd
Blasting Booth
Sand Bast
All parts to
Assembly
Staging
nspection
Mech/Elect
Assembly
nspection (
Run !est
Ship to
Customer
Steel "abrication Process #"uture State$
Shipping (
Crating
Lean Six Sigma < Process !ap )nalsis
2>
5 S
<A
T#e Benefits of Implementing ,:S-
T#e Benefits of Implementing ,:S-
$/ provides a basis for being a world,class competitor and
the foundation for a disciplined approach to the
workplace.

/afer working conditions

4 cleaner and more organized work area

&eduction in non,value added time

!ffective work practices

!fficient work processes

Facilitatin! a chan!e: )afer. 9etter. Faster ; Facilitatin! a chan!e: )afer. 9etter. Faster ;
<1
And The <,)&s are3
And The <,)&s are3
Seiri < 9Separate; or Sort
Seiton < 9Straig#ten; Store5 or Put0in Place
Seiso < 9'lean; or S#ine
Seiketsu < 9Standardi"e;
S#itsuke < 94iscipline; or Sustain
= )afety ;
= )afety ;
<2
Sometimes called :S T ? or ,PS-
Sometimes called :S T ? or ,PS-
)afety >
)afety >
st st
;
; /in eerythin! we do;0
Seiri < 9Separate; or Sort
Seiton < 9Straig#ten; Store5 or Put0in Place
Seiso < 9'lean; or S#ine
Seiketsu < 9Standardi"e;
S#itsuke < 94iscipline; or Sustain
<
Lean Six Sigma 0 Ot#er Lean Tools
+
Root 'ause )nalsis and 'orrecti/e
)ction 9R''); < : &# Tec#ni7ue
+
Spag#etti '#arts
+
Pareto )nalsis
+
Hisual 4isplas
+
Hisual 'ontrols
+
Total Predicti/e !aintenance
+
S!.4 < Single !inute .xc#ange of 4ies%
<#
Lean Six Sigma
<$
L.)1 SIR SI2!)
R.F.R.1'.S*

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