4/25/17

Evolution to Lean Six Sigma

Business
Quality: Process
Evolution of Six Sigma from Statistical
Reengineering
Six Sigma
Quality Process
Control
Total
Quality
Management LEAN
Six Sigma
Productivity: Toyota
Production
Ford System
Production LEAN
System
Just In Time
©Furterer, 2006 2

Overview of Lean Overview of Lean

• Lean means speed – it applies to ALL
processes
• Slow processes are expensive processes
• Lean metric is cycle efficiency
• 95% of the lead time in most processes is
Lean is a methodology that It originated as the Toyota wait time
focuses on reducing Production System and • To improve speed – identify and eliminate
cycle time and increased in popularity after the largest time traps using Continuous
waste in processes. 1973. Improvement
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Overview of Lean Overview of Lean: 5 Principles of Lean Thinking

Steps outlined to
LEAN = Eliminating the Wastes Determining the emphasize sources of waste Flow progresses without
Typically 95% of all lead time is non-value added customer’s value waste barriers
Value Added Identify Map the
Non-Value Added Create the
5% Value Value Stream
95% Flow

Customer demand
Drive for Initiate the triggers pull. We
Perfection Pull produce only what
customer demands
Activity ¹ Productivity
Continually improve always
5 6

Overview of Six Sigma

Lean Components Key Components in Six Sigma
Optimize Flow, Value
Enterprise Stream Culture and
Value Customer
Setup Change
Pull/Kanban Proposition Focus
Reduction Management
Continuous Value Mistake
Improvement Engineering
Reduce
Proofing
Eliminate Measurement
Human
Cost Waste (metrics)
Six Sigma Resource
Management
Lean Layout Standard Work5S Visual Control
Foundation Strategic Direction People Engagement
Quality and
Infrastructure
and
Lean tools
Methodology
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Derived from Sandra Furterer’s dissertation. © 2004 Sandra L. Furterer

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Requires a Change in Thinking Requires a Change in Thinking

IRS – Tax Advice USA

(Phone-In)
Related
From To
PPM Restaurant
1,000,000
Bills Doctor Prescription Writing Problem-driven Customer-driven
100,000
Payroll Processing
Reacting to dissatisfaction Preventing dissatisfaction
10,000
Wire Transfers
Results at any cost Process oriented thinking
1,000 Purchased
Airline Baggage Handling
oriented thinking
Material
100 Lot Reject Rate Best-in-Class How are results, rework,
10
Avg.
Domestic
Airline Flight Used to waste and rework restarts created and delivered
Company Fatality Rate
1 (0.43 PPM) Special cause focus Common cause focus
1 2 3 4 5 6 7
Sigma Scale of Measure = Ability of process to perform People management System management
without defects
9 Reward fire-fighting Reward team effort 10

Overview of Six Sigma

Using Lean and Six Sigma tools

empowers us to eliminate waste and
excess cost, reduce variation and
defects, & improve our processes and
customer experience in our business.

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