LEAN Six Sigma

Reduce the Wastages Reduce the Variations

MARKET LEADER:

• QUALITY

• UNDERSTANDING THE CUSTOMER’s REQUIREMENTS

• BETTER THAN THE COMPETITION

3 M’s:

1) Measurement: 99.99967% or less

3.4 DPMO
Defects Defectives
2) METHOD:

BB
DMAIC: DMADV (DFSS)

(Process exists) (Process does not exists)

Define Define
Measure Measure
Analyze Analyze
Improve Design
Control Verify / Validate
3) MANAGEMENT PHILISOPHY:
0
 T T - TALENT
T - transportation I T
M I
I - inventory H – HUMAN M
M - motion INETLLECT
W
W
O
W - waiting O O
O D
O - overproduction D
O - overprocessing
D - defects
S - skills
CP + P = SP

Inputs Process OUTPUT

X, x, x, x, x x
Y

Y = f(x’s)

Time
Cost
Quality
Apex Council
Sponsor / Champion
Process Owner
Master Black Belt
Black Belts
Green Belts (Project Leaders)
Team Members
 DMAIC:

Y = f(x’s)

Define; Analyze,
Measure Improve
and
Control
DEFINE: VOC – Voice of Customer VOICE OF
BUSINESS (VOB)

Internal External

30 VOC: CATEGORIZE

AFFINITY: Proper lighting

Power Backup
Easy Acceible locagion DJ
Parking space Hall Size
Location First Aid
Amenities
Distance from City
Must be in city centre
Rent cost
Qualty of Catering services
Dinning facilities
Time to travel
Security
Avoid issues of residential community
Hygiene
Ambience
 Satisfaction

KANO Model One

Dimensional

Delighters

Dysfunctional Functional
Must Be

Dissatisfaction
VOC – CCR (customer’s critical requirement) - CTQ (Critical to Quality)

The delivery of the goods to be on time

TIME

Delivery of goods within 1 day (24 hrs)

PROJECT Start on this CTQ

Y-
DAY 1:

Why Six Sigma

What is Six Sigma
What is Lean

History and Quality Gurus

Team Involved

Define:
Gathering VOC
Categorizing the VOC – Affinity Diagram
Prioritizing the VOC – KANO Model
Converting the VOC to CTQ

END of DAY 1
PROJECT CHARTER:

Business Case
Problem Statement / Opportunity Statement
Goal Statement – Specific Measurable Achievable Realistic Timebound
Project Scope
Project Timelines - DMAIC
Project Team

Project Title

Problem is known, Causes are known – RCA

Problem known, Solutions known – JDI
Problem is Persistent and not SPORADIC – DMAIC CAPA
Map the Process:

- SIPOC – Supplier Inputs Process Output Customer

- Process flow diagram (PFD) / Flowchart
- Cross functional Process Flow Diagram / Swimlanes
- VSM (Value Stream Mapping)
 NVA: any activity which falls under any one type of the waste
VA: Takt Time
BVA / VE :

LEAD TIME = total time taken in the

Customer
supplier process from order to cash

Process Cycle Efficiency = Total Time spent on VAT / Lead Time

Step 1 Step 2 Step 3 Step 4

• Receiving the call –
15 secs - NVA
• Taking customer
details – 30 secs -
VA
• Taking order
details – 60 secs -
VA
• Reconfirming the
order – 20 secs -
NVA
• Punching the order
in CRM – 15 secs
NVA

CT: 160 secs CT: CT: CT:

VAT: 90 secs VAT: VAT: VAT:

Time and Motion Study

Takt Time = Total Time available in
productions / Customer demand

= 480 / 100

4.8 min
MEASURE:

Collect the data

Measure the data
Check the Measurement system analysis
Check the data distribution
Check the process stability
Check the process capability
 Data Types:

Discrete / Attribute Continuous / Variable

• Binary
• Ordinal
• Counts
DCP : Data Collection Plan

What? : Operational definition

Where? : Source …..
When? : Frequency ….
How? : Sampling Techniques
Simple Random Sampling
Stratified Sampling
Systematic Sampling: (N/n)th (300/100)th 3rd
Clustered Sampling / Sub Grouping :

How Much? -
-----

Who?
 Data Measurement:

Measures of Central Measures of Spread /

Tendency Dispersion

Mean Range
Median Variance
Mode Standard Deviation

68 70 71 72
69 73 74
Histogram

Box Plot
 Measurement 100%
system analysis

Part to Part Measurement %

system variation Contribut
60%
ion - 40%

Repeatability Reproducibility
 Measurement System Analysis

Continuous data
Discrete data

Gage R&R AAA – Attribute Agreement Analysis

Min 10 parts
Min 2 operators
Min 2 replications
 % SV % Contribution

Accepted < 10% < 1%

Business Call / 10% - 30% 1% - 9%

Conditionally Accepted
Rejected > 30% > 9%

Kappa Value

0.9 to 1 (90% to 100) – accepted

0.8 to 0.9 (80% to 90%) – business call
Less than 0.8 (less than 80%) - rejected
Normality Test / Anderson Darling Test

P value

ON HOLD
Process Capability

Continuous Data Discrete Data

Cp / Cpk DPMO

Process Sigma Level

DPMO
• Defect : 80 defects
• Samples : 500 samples
DPU = total no. of defects / no. of samples
DPU= 80/500
DPU= 0.16

PPM = DPU X 10^6

= 0.16 X 1000000
= 160000
2.5 sigma level
DPMO
DPO = total no. of defects
Total no. of samples X opportunity per sample

= 80/ (500*5) = 80/2500

DPO= 0.032
DPMO = DPO X 10^6
=0.032 X 1000000
= 32000
3.35 sigma level
Process Stability
CAPA CAPA

+3 sd

-3 sd

7 control charts
Customers Specification Limit

Cp = VOC
VOP
= USL – LSL
6sd
=
 USL: 14 cm
LSL: 6 cm
Mean: 10 cm
SD: 1 cm
Customer
Specification:
10 cm ± 4 cm

−6𝜎 −5𝜎 −4𝜎 −3𝜎 -2𝜎 -1𝜎 𝑥ҧ +1𝜎 +2𝜎 +3𝜎 +4𝜎 +5𝜎 +6𝜎

4 5 6 7 8 9 10 11 12 13 14 15 16

Cp < 1 Process not capable

Usl-Lsl/6sd Cp = 1 Process is just capable

Cp * 3 = sigma level
Cp ~ 1.33 Process is capable
=14-6/ 6*1 Cp ~ 1.66 Process is very capable
8/6
=1.33 Cp = 2 Process is operating at 6
sigma level
Mean: 10 cm
SD: 1 cm
Customer
Specification:
12 cm ± 4 cm

−6𝜎 −5𝜎 −4𝜎 −3𝜎 -2𝜎 -1𝜎 𝑥ҧ +1𝜎 +2𝜎 +3𝜎 +4𝜎 +5𝜎 +6𝜎

4 5 6 7 8 9 10 11 12 13 14 15 16

Cpk = min (Cpu, Cpl) Cpu = 16-10 / 3*1

=6/3
Cpu = USL – Mean / 3sd =2
Cpl = 10-8/3*1
Cpl = Mean – lsl / 3sd = 2/3
0.67
MEASURE:

Collect Data
Measure The Data
Measurement system variation
Normality of the data – check the normality
Process Stability – different types of control charts
Process Capability

Y= f(x’s)

Analyze:
 Analyze:

PROCESS DOOR APPROACH DATA DOOR APPROACH

Process map Review Pareto

Analysing the VSM (Lean Principles) Hypothesis Testing
- identify the value Correlation and Regression
- map the value stream
- create the flow
- establish pull system
- seek perfection

Brainstorming
RCA – Fishbone and Why Why Analysis
Traffic lack of training
Coordination Power failure
Wrong address staff on strike
Too many orders natural calamities
Vehicle break insufficient capacity of staff
Lack of staff heavy rainfall
Spike in orders long wait time in answering call
Limited damage during delivery
Deliver guys unable to find the place
Lack of raw material road block
Destination too far
Insufficient staff
Lockdown
Departments not working parallelly
IT infra breakdown
Festival season
Inefficient equipment
Tech issues in app
Lack of oven
Incorrect order in CRM
supplier back off
Free wheeling

Round Robin

Card Method

Fish bone diagram – categorize

6 Ms
Man
Method
Material
Machinery
Measurement
Mother Nature
Appraiser Response Sample Trial Standard

Mike 5 1 1 5

Mike 5 1 2 5

Mike 3 2 1 3

Mike 3 2 2 3

Mike 1 3 1 1

Mike 1 3 2 1

Mike 2 4 1 2

Mike 2 4 2 2

Mike 1 5 1 1

Mike 1 5 2 1

Mike 2 6 1 3

Mike 3 6 2 3

Mike 4 7 1 4

Mike 4 7 2 4

Mike 5 8 1 5

Mike 5 8 2 5

Mike 2 9 1 2

Man
Mike 2 9 2 2

Mike 1 10 1 1

Mike 1 10 2 1

Mike 5 11 1 5

Mike 5 11 2 5

Mike 4 12 1 4

Mike 4 12 2 4

Mike 1 13 1 1

Mike 1 13 2 1

Mike 3 14 1 3

Mike 3 14 2 3

Method
Mike 2 15 1 2

Mike 2 15 2 2

Mike 4 16 1 4

Mike 4 16 2 4

Mike 1 17 1 1

Mike 1 17 2 1

Insufficient staff
Mike 2 18 1 2

Mike 2 18 2 2

Lack of training
Mike 3 19 1 3

Mike 3 19 2 3

Mike 5 20 1 5

Mike 5 20 2 5

Mike 5 21 1 5

Mike 4 21 2 5

Mike 4 22 1 4

Mike 4 22 2 4

Mike 3 23 1 3

Mike 3 23 2 3

Mike 2 24 1 2

Mike 2 24 2 2

Mike 2 25 1 2

Mike 2 25 2 2

Mike 4 26 1 4

Mike 4 26 2 4

Mike 1 27 1 1

Mike 1 27 2 1

Mike 2 28 1 2

Mike 2 28 2 2

Mike 5 29 1 5

Mike 5 29 2 5

Mike 3 30 1 3

Mike 3 30 2 3

Amanda 5 1 1 5

Amanda 5 1 2 5

Amanda 3 2 1 3

Amanda 3 2 2 3

Amanda 1 3 1 1

Amanda 1 3 2 1

Amanda 2 4 1 2

Amanda 2 4 2 2

Amanda 1 5 1 1

Amanda 1 5 2 1

Amanda 2 6 1 3

Amanda 2 6 2 3

Amanda 4 7 1 4

Amanda 4 7 2 4

Amanda 5 8 1 5

Amanda 5 8 2 5

Amanda 2 9 1 2

Amanda 2 9 2 2

Amanda 1 10 1 1

Amanda 1 10 2 1

Amanda 5 11 1 5

Amanda 5 11 2 5

Amanda 4 12 1 4

Amanda 4 12 2 4

Amanda 1 13 1 1

Amanda 1 13 2 1

Amanda 3 14 1 3

Amanda 3 14 2 3

Amanda 2 15 1 2

Amanda 2 15 2 2

Amanda 4 16 1 4

Amanda 4 16 2 4

Amanda 1 17 1 1

Amanda 1 17 2 1

Amanda 2 18 1 2

Amanda 2 18 2 2

Amanda 3 19 1 3

Amanda 3 19 2 3

Amanda 5 20 1 5

Amanda 5 20 2 5

Effect – Delay in
Amanda 5 21 1 5

Amanda 5 21 2 5

Amanda 4 22 1 4

Amanda 4 22 2 4

Amanda 3 23 1 3

Amanda 3 23 2 3

Amanda 2 24 1 2

Amanda 2 24 2 2

Amanda 2 25 1 2

Amanda 2 25 2 2

pizza delivery
Amanda 4 26 1 4

Amanda 4 26 2 4

Amanda 1 27 1 1

Amanda 1 27 2 1

Amanda 2 28 1 2

Amanda 2 28 2 2

Amanda 5 29 1 5

Amanda 5 29 2 5

Amanda 3 30 1 3

Amanda 3 30 2 3

Eric 5 1 1 5

Eric 5 1 2 5

Eric 3 2 1 3

Eric 4 2 2 3

Heavy Rainfall
Eric 1 3 1 1

Eric 1 3 2 1

Eric 2 4 1 2

Eric 2 4 2 2

Eric 1 5 1 1

Eric 1 5 2 1

Eric 2 6 1 3

Eric 2 6 2 3

Eric 4 7 1 4

Eric 4 7 2 4

Eric 5 8 1 5

Eric 5 8 2 5

Eric 2 9 1 2

Eric 2 9 2 2

Eric 1 10 1 1

Eric 1 10 2 1

Eric 5 11 1 5

Eric 5 11 2 5

Eric 3 12 1 4

Eric 4 12 2 4

Eric 1 13 1 1

Eric 1 13 2 1

Eric 3 14 1 3

Eric 3 14 2 3

Eric 2 15 1 2

Eric 2 15 2 2

Eric 4 16 1 4

Eric 4 16 2 4

Eric 1 17 1 1

Eric 1 17 2 1

Eric 2 18 1 2

Eric 2 18 2 2

Eric 3 19 1 3

Eric 3 19 2 3

Eric 5 20 1 5

Eric 5 20 2 5

Mother
Eric 5 21 1 5

Eric 5 21 2 5

Eric 4 22 1 4

Eric 4 22 2 4

Eric 3 23 1 3

Eric 3 23 2 3

Eric 2 24 1 2

Eric 2 24 2 2

Eric 1 25 1 2

Eric 2 25 2 2

nature
Eric 4 26 1 4

Eric 4 26 2 4

Eric 1 27 1 1

Eric 1 27 2 1

Eric 2 28 1 2

Eric 2 28 2 2

Eric 5 29 1 5

Eric 5 29 2 5

Eric 3 30 1 3

Eric 3 30 2 3

Britt 5 1 1 5

Britt 5 1 2 5

Britt 3 2 1 3

Britt 3 2 2 3

Britt 1 3 1 1

Britt 1 3 2 1

Britt 2 4 1 2

Britt 2 4 2 2

Britt 1 5 1 1

Britt 1 5 2 1

Britt 2 6 1 3

Britt 2 6 2 3

Britt 4 7 1 4

Britt 4 7 2 4

Britt 5 8 1 5

Britt 5 8 2 5

Britt 2 9 1 2

Britt 2 9 2 2

Britt 1 10 1 1

Britt 1 10 2 1

Britt 5 11 1 5

Britt 5 11 2 5

Britt 4 12 1 4

Britt 4 12 2 4

Britt 1 13 1 1

Britt 1 13 2 1

Britt 3 14 1 3

Britt 3 14 2 3

Britt 2 15 1 2

Britt 2 15 2 2

Britt 4 16 1 4

Britt 4 16 2 4

Britt 1 17 1 1

Britt 1 17 2 1

Britt 2 18 1 2

Britt 3 18 2 2

Britt 3 19 1 3

Britt 3 19 2 3

Britt 5 20 1 5

Britt 5 20 2 5

Britt 5 21 1 5

Britt 5 21 2 5

Britt 4 22 1 4

Britt 4 22 2 4

Britt 3 23 1 3

Britt 3 23 2 3

Britt 2 24 1 2

Britt 2 24 2 2

Britt 2 25 1 2

Britt 2 25 2 2

Britt 4 26 1 4

Britt 4 26 2 4

Britt 1 27 1 1

Britt 1 27 2 1

Britt 2 28 1 2

Britt 2 28 2 2

Britt 5 29 1 5

Britt 5 29 2 5

Britt 3 30 1 3

Britt 3 30 2 3
Not Controllable -

Direct Solutions –

Controllable and needs further analysis – Why – why analysis

 Correlation &
PARETO
Regression

Hypothesis
r -1 to +1

r – Pearson coefficient of strength

r R2
0.7 to 1 Strong .50 to 1 Strong
determination
0.5 to 0.7 Moderate / 0.25/0.30 to 0.50 Medium
medium determination
< 0.5 weak < 0.25/0.30 Weak
determination
R2 0 to 1

Regression equation: y = b0 + b1 x

P value < 0.05

Ho : there is no relationship between x & y
Ha : There is a relationship between this x and Y
Regression equation: y = b0 + b1 x

Independent
Variable
Dependent
Variable

Slope
Constant
Y intercept
Channeling:

Overweight / Obesity:

Fitness regime cycles replacing bikes

Timely meals
Regular exercise
Diet control
Health awareness session
Free gym
No overtime
Stringent medical tests
Yoga session for all
FITNESS bonus
Fitness lined bonus plan
Max limit for weight on contract
Compulsory yo-yo test regularly
BMI to be set as KPI
Avoiding stress
No junk food
Weekly weight measurement
Anti-solutioning:

Analogy:

Brainwriting
LIST of Multiple Solutions:

Categorize / prioritize solutions

Lean Tools for finding Solutions:

Kai zen

Kanban

5S
Sort
Set in order
Shine
Standardize
Sustain

Poka Yoke

FMEA:
Control Charts
Define
VOC –
- Affinity Diagram
- KANO Model
- VOC to CTQ
Project Charter:
Business Case
Problem Statement
Goal Statement
Project Scope
Project Timelines
Project Team
Project Title
Map the Process:
SIPOC
PFD / Flowchart
Swimlanes / CFPFD
VSM
Measure
Data collection plan.
Measure: Central Tendency / Dispersion
Measure System Variation: MSA – Gage R&R / AAA
Check the data distribution: Normality test / Anderson darling test
Process Stability: Control Charts
Process Capability: DPMO / Cp; Cpk
Analyze:
Process Door Approach:
Review the process map
Lean Principles
Brainstorming
Fishbone diagram
Why-why analysis
Data Door Approach:
Pareto
Hypothesis Test
Correlation regression
Improve:
Find the solution:
Brainstorming
Kaizen
Kanban
Poka Yoke
5S
Selection of solution:
N/3 voting
Striking against must be
CBM
Effort / benefit matrix (Payoff matrix)
NGT
Test the solutions
Justify the benefits
FMEA
Update the SOP
Train the team
Implement the solutions
Control:
Control Plan
Control Charts
Hypothesis test
Project Signoff
Celebrate