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ed

T
op
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at LEAN
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BUSINESS
ea
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INFOGRAPHICS
The lean journey of Fortune
500 top performers as
motivators to small business

+ exciting illustrations

case studies

links of resources to
learn & get lean six
sigma certified

GUNJAN SUBEDI
WWW.SIXSIGMACERTIFY.COM
'Six Sigma is a quality program that, when all is
said and done, improves your customer’s
experience, lowers your costs, and builds better
leaders’.
Jack Welch (Chairman and CEO of
General Electric (1981-2001))

is a continuous, controlled and data driven method


of eliminating defects
here we aim to go for a six standard deviations
between the mean and nearest specification limit
in any process throughout the life cycle of the
product, business or service.

Is six sigma a defect free approach ?


Not really, but to achieve six sigma, the
process shouldn’t produce more than 3.4
defects in a million opportunities.
3.4 defects in million chances is technically
a defect free management approach !

Two kinds of six sigma improvement projects:

DMAIC DMADV

For Existing Project For New Project

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DMAIC Overview...
Solutions to the inherent
problems are developed,
Controls are
the performance of the
established to ensure
project is improved and
that our improvements
the root causes of the
or gains are
problem are
sustainable.
eliminated/reduced.

Project is defined
Team is selected
Root causes of the
Project is launched
variation and defects are
analysed carefully.

Current process performance &


Critical to Quality metrics are measured.

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ME ! Grow your
wisdom....

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Lean is a method of creating more value to the customers (users)
using minimum resources (minimization of wastes in every steps of
process).

Waste-Any
Value- Ability to activity that
provide the utilizes time,
customers what space and
they want in resources
right time, without adding
quality and cost. value to the
product..

Lean is a continuous improvement process.

Lean helps organization to be innovative and competitive.

Lean
Reduce waste,
decrease cost, make
Six-sigma system fast
Decrease Lead time
Continuous improvement Improve Process cycle
Eliminate Variation efficiency
Determine and Improve all Reduce work in
the Critical to Quality progress
attributes Make all process/wastes

Lean six sigma visible

Removing “Waste” from a process.


Solving the problems/decrease the
chance of defects.

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POKA YOKE ROOT
STANDARDIZATIO
CAUSE PDCA
ANDON ANALYSIS N

SMART
GOALS TAKT TIME
3M

5S

VSM

SMED

Get enrolled in
lean tools for business
e-course now !!

PULL SYSTEM

6 DEFECTS

JIDOKA
TOTAL PRODUCTIVE
MAINTENANCE

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: a story of a sand grain to life !
Do you know that the origin of
Intel's core processors which are
the heart of all laptops, phones
and almost all the electronic
devices we are familiar, is sand ?

Today, with Asset of 128.6 B and Market


value of 254.8 B, Intel stands in 49th rank
in Forbes Largest Public companies (2018),
ranking second in semiconductor business
only after samsung !

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With time Intel faced two major challenges
in growth

1. very fast growing 2. need to innovate


industry; without proper frequently
management competitor
could outrun

Solutions
lean as company
culture-making
good relations with
suppliers
partners vendors
80
y 18
r
eve
60
e in
bl
dou !
40
istor nths
rans mo
Complete automation t
of
20
.
no
0
0 month 18 month 36 month 54 month

lean training to partnership with


employees universities as a training
framework

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's secret: JIDOKA (Automation)

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ads asdjasdhkasd hsh kjsh jksdd j sdakjk hsda dsakjh ad jkasd JIDOKA means
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askdjkh asdkjhasd kasd kjhahsdh kjasdh hkjh ahsdk kjsajdh

asdh kjhjkasd kh asdkjh kjasdd hhkjk asd hkjasdhk asdkj


increasing the
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hhkjasjdhkjsa k sadkjhkjdsh k ksjd jhkjsdh k d kjdhkj dsh


productivity and
jkjasd hj asd kjahk hd sda hjkjkja da

efficiency through
partial/full automation.

Benefits-

Jidoka
1. Detect mistakes and
defects automatically.
2. Increase in line
efficiency
3. Less human resources
4. Less labour costs.

Where can I find more information on JIDOKA ?


Ebook Online course Articles

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#49 World's Best
One of the world's largest Employers 2018
#39 Top Regarded
suppliers of athletic shoes Companies 2018
and apparel and a major #186 Best Employers
for New Grads 2018
manufacturer of sports #205 Best Employers
shoes, clothes and other for Women 2018
#344 Global 2000
equipment 2018

How could NIKE take advantage of lean and six sigma?


Waste reduction
NIKE works relentlessly to reduce all kinds of
wastes through lean. When flyknit lunar1+ was
launched in 2013, it reduced the footwear waste by
80% compared with traditional approaches.
To put that in a picture, it means to save a waste of
66,000 kg in a year for just Flyknit Lunar 1+
For free copy:
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Environmental issues
NIKE works closely with their supplier and devised
strategy to reduce carbon emissions and focus on
energy savings. They have achieved an incredible
24% reduction in energy use per pair and a 17%
reduction in CO2 emissions per pair..
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Vendor Selection
It takes NIKE only 152 days compared to 246 days to
become a partner even though the screening process
for vendor selection is rigorous.
Nike thus takes 38% less time in evaluating a
manufacturing partner. After the partnership too, they
maintain routine evaluation of the performance.

Lean in training and company culture

Nike trains the employee with HRM


practices related to lean manufacturing.
The training contents also contains lean
problem solving tools and projects and
planning tools such as PDCA and A3
reports.

Lean in supply chain


NIKE requires its suppliers to adapt to lean
manufacturing.
Lean manufacturing is a minimum requirement
to be a part of NIKE’s supply chain.
Even with such rigorous approach, NIKE takes
very less time in evaluating a manufacturing
partner.
They integrate a wide range of improved
practices with vendors and evaluate the
performance routinely.

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With $265.2 B in sales and $22.5 B in profit, Toyota stands in
12th position in Forbes List of Top Public Companies. As of
2018 it is the largest automobile company by profit (22.5 B)

Lean tools that TOYOTA developed

Just in Time
JIT is a methodology aimed primarily at reducing times within
production system as well as response times from suppliers
and to customers. Toyota always believes in having as little Send a request at
contact@sixsigmacetify.com
space as possible so that face-to-face communication among for more !

workers is easier.

FIVE WHY ?????


FIVE WHY originally developed by Sakichi Toyoda is a
very simple but a powerful technique used to trace the
ultimate causes of the errors so that it won’t recur. This
is now a very important tool in lean manufacturing, Send a request at
contact@sixsigmacetify.com
Kaizen and lean six sigma too. for more on
Five Why Analysis

A3 (named after the international paper size on which it fits) as a key tactic in
A3 sharing a deeper method of thinking that lies at the heart of Toyota’s sustained
success. It incorporates the PDCA cycle (Plan, Do, Check and Act)

Send a request at
contact@sixsigmacetify.com
for A3 article

Lean Manufacturing
TOYOTA developed Lean Manufaturing method for waste
minimization (Muda), overburden (Muri) and unevenness in work
Send a request at
loads (Mura) within a manufacturing system without sacrificing contact@sixsigmacetify.com
for more on this
topic
productivity.
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Bonus free Resources

r
er s, T h a nk you fo
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Dear Rea
a r t o f t his lean
being a p
e re a re some free
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journey...
a te s fo r you to
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excel temp

download

Five Why Takt time


A3 Template

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TOYOTA'S 14 Lean Management Principles

Principle #1 – “Base your management decisions


on a long-term philosophy, even at the expense of
short-term financial goals.”

Principle #2 – “Create a continuous process flow


to bring problems to the surface.”

Principle #3 – “Use ‘pull’ systems to avoid


overproduction.”
Send a request at
contact@sixsigmacetify.com
for more on this topic

Principle #4 – “Level out the workload (work like


the tortoise, not the hare).”

Principle #5 – “Build a culture of stopping to fix


problems, to get quality right the first time.”

Principle #6 – “Standardized tasks and


processes are the foundation for continuous
improvement and employee empowerment.”

Principle #7 – “Use visual controls so no


problems are hidden.”

VISUAL CONTROL
free article-send request
Principle #8 – “Use only reliable, thoroughly
at contact@sixsigmacertify.com

tested technology that serves your people


and process.”
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Principle #9 – “Grow leaders who thoroughly
understand the work, live the philosophy, and
teach it to others.”

Principle #10 – “Develop exceptional people and teams who follow your
company’s philosophy.”

Principle #11 – “Respect your extended network


of partners and suppliers by challenging them and
helping them improve.”

Principle #12 – “Go and see


for yourself to thoroughly
send request at
understand the situation.” contact@sixsigmacertify.com
GEMBA WALK
free article

Principle #13 – “Make decisions slowly by


consensus, thoroughly considering all
options; implement decisions rapidly.”

Principle #14 – “Become a learning


organization through relentless
reflection and continuous
improvement.”

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six sigma scholarships, dozens of lean improvement articles and business
analysis software skills .
Let the numbers speak...
FORBES 2018 GLOBAL 2000 DATA

6 th Global 2000, 2018

60 th America's Largest Public Companies 2018


24 rank in Sales, 2018
9 rank in Profit, 2018

3 rank in Assets, 2018


10 rank in Market value, 2018

Many problems existed in BOA several years ago and they were widely
responsible for inefficient and error prone processes generating customer
dissatisfaction.

Improvement Benefits to
Strategies Customers

Customer delight 25%


Strategic shift for the company, Non-credit losses per account
28%

from growth through acquisition Number of accounts/year


and merger to organic growth Missing items on 70%
customer statements
Use of unique blend of lean Same day payments 22%
management such as Hosin-
Deposit processing 35%
Kanri and improvement
methodology of six sigma. Cycle times in several business 50%

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six sigma scholarships, dozens of lean improvement articles and business
analysis software skills .
's secret : Hosin-Kanri

Meaning:
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sahjkshjksh sda sadksjadhkdas dash kjsadh sda j dhhkaksd

ads asdjasdhkasd hsh kjsh jksdd j sdakjk hsda dsakjh ad jkasd

hjkash kjah d j dsajkjadskjkjhad aksdjh kjadh kjkjad hh asdk

Aligning the goals of the


askdjkh asdkjhasd kasd kjhahsdh kjasdh hkjh ahsdk kjsajdh

asdh kjhjkasd kh asdkjh kjasdd hhkjk asd hkjasdhk asdkj

company (Strategy) with


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hhkjasjdhkjsa k sadkjhkjdsh k ksjd jhkjsdh k d kjdhkj dsh

plans of middle
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management (Tactics) &


work performed on plant
floor (Action).

Hosin-kanri Hoshin stands for a


Shining needle pointing
direction, as in compass

Kanri stands for Control or


management

Where can I find more information on Hosin-Kanri ?


Ebook Online course Articles

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for more

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six sigma scholarships, dozens of lean improvement articles and business
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Henry Ford (1863-1947): He is highly
acclaimed for introducing lean concepts like
Standardization,assembly lines, Just in Time
(JIT), Welding, Waste of materials and
movement etc in manufacture

The Ford Motor Company is one of America’s, and the


world’s, largest and most successful automakers.
World’s very first automaker company to implement Six
Sigma methodology into their business operations on a large
scale.
Ford's Vision and Six Sigma
Defect Reduction

Their aim was to reduce their defect rate to


only a single defect per every 14.8 vehicles,
and they succeeded.

Waste Elimination
The concept of eliminating waste is
manufacture and business dates back since
the industrial revolution and was formally
established after World War II which Japanese
saw as a business improvement era. Henry
ford saw wastes as critical obstacles in lean
production.

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FORD's journey with lean & six sigma

Cost reduction
Six sigma helped to identify those
resources that weren't necessary and
focus only on value adding process.

Improved customer satisfaction


Six sigma helped to improve the productivity with streamlined
production processes adding more value to the product and thus
improve customers' satisfaction

Improved quality

Six Sigma is a concept where that only 99.99966%


(and up) is ideal. This percentage limits the number
of defects per million to just seven.

Managed Environmental Issues


om
at: y.c
t if
Six sigma helped Ford to reduce es ert
qu ac
re gm
nd si
solvent consumption, introduce the se six
t@
ac
nt
green work culture, improvement in co

quality and helped increase


environment awareness.

Get enrolled in
lean six sigma
professional course now !!

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six sigma scholarships, dozens of lean improvement articles and business
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With profits of 2.2 Billion/year, Caterpillar is the world's
largest manufacturer of construction and mining
equipment, diesel and natural gas engines and industrial
gas turbines. Technology leader in logistics, construction,
transportation, mining, forestry, energy and electric power
generation.

CPS
Together with lean and six sigma
logics, Caterpillar runs the
'Caterpillar Production System
(CPS)' is the common Order-to-
Delivery process being
implemented enterprise-wide to
achieve our Safety, Quality and
Velocity goals.

CPS uses 6 Sigma in many ways:

Methodology (DMAIC, DMEDI & Process Mgt.) supplemented with lean


tools

Practitioners(DCs,MBBs,BBs, &GBs) with additional CPS training

Full time job roles in defined salary grades(BBs,MBBs,DCs)

Strategy Integration process to align, prioritize, and select CPS projects

Financial Principles to quantify CPS project benefits

Global deployment with clarity, consistency, and commitment


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six sigma scholarships, dozens of lean improvement articles and business
analysis software skills .
kjhjfkjhs jhsakh jkashk adsjkhsah

adjhkjasdh dajhashkjkhs sahjkshjksh


Helps to find -
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dhhkaksd ads asdjasdhkasd hsh kjsh

jksdd j sdakjk hsda dsakjh ad jkasd 1. factors contributing


hjkash kjah d j dsajkjadskjkjhad

aksdjh kjadh kjkjad hh asdk askdjkh


to the greatest loss
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ahsdk kjsajdh asdh kjhjk

2. areas to targeted to

SIX improve Availability,


Performance and

BIG Quality

LOSSES

Failure/breakdown

BIG Startup
Speed

Losses
Click me
for more
Minor Stoppage Cutting blade

Setup/adjustment

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Jack Fransis Welch (CEO 1981-2000)
adopted Motorola's Six Sigma quality
program in late 1995. In 1980, the year
before Welch became CEO, GE recorded
revenues of roughly $26.8 billion and in
2000, the year before he left, they were
nearly $130 billion
Now, with the asset of $358.1B and a market value
of $126.8 B, General Electric stands in 388 rank of
Forbes Largest Public Companies in 2018. It
ranks 18th by Gross Revenue.
How could GE take advantage of lean and six sigma?

Lower Development costs

Using lean technique, GE developed a gas turbine


which enabled it to deliver the most efficient, low
cost energy solution it could to customers and it
decreased development costs by 60%!

Product Innovation

Reduced time of New Product innovation by two


thirds with shorter time-frame with much lower
expense. This positioned them extremely well with
customers, gave them first mover advantage.

Reduced time to customer validation by 80%


Six Sigma could reduce time of customer
validation and acceptance by 80% in GE.

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Honeywell International Inc. is an American multinational conglomerate
company that makes a variety of commercial and consumer products,
engineering services and aerospace systems for a wide variety of
customers. It has introduced six sigma plus into its operation

Six Sigma in Action


Increased Rolled Throughput Yield (RTY)
Reduced variations in all processes

Reduced cost of poor quality (COPQ)

Deployment of skilled resources as change agents.

How does Honeywell meet its Quality Target?


Total Productive Maintenance (TPM)
New skills and techniques for Total Productive Maintenance (TPM), a
productivity skill-set which enables permanent improvement in the overall
effectiveness of Honeywell's assets, be they equipment for production,
laboratories, buildings, business support or transportation.

Honeywell Quality Value (HQV) assessment process


The Honeywell Quality Value (HQV) assessment process, which is
based on the Malcolm Baldrige Award in the US. The assessment
process focuses on gaps and identifies opportunities for
improvement.
Creating value for customers
A process methodology to enable the success of its
E-Business value creation strategy. Each element of
that strategy uses the power of the Internet and Six
Sigma Plus processes to differentiate itself by
creating more value for customers.

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Honeywell's secret
kjhjfkjhs jhsakh jkashk adsjkhsah adjhkjasdh TPM
dajhashkjkhs sahjkshjksh sda sadksjadhkdas

dash kjsadh sda j dhhkaksd ads


Total Productive
asdjasdhkasd hsh kjsh jksdd j sdakjk hsda Maintenance
dsakjh ad jkasd hjkash kjah d j

dsajkjadskjkjhad aksdjh kjadh kjkjad hh is a holistic approach to


asdk askdjkh asdkjhasd kasd kjhahsdh

kjasdh hkjh ahsdk kjsajdh asdh kjhjk


equipment maintenance
that strives to achieve
perfect production
increase production

TPM
while, at the same time,
increasing employee
morale and job
satisfaction.

Where can I find more information about TPM ?

Slideshare Article Ebook

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for free eboook

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