Lean Six Sigma

Approved for Public Release

Overview
• What is Lean Six Sigma? • What can Lean Six Sigma do? • How to get started

Lean Six Sigma

Approved for Public Release

2

Paths to Cost Reduction

• • • •

Cut services Reduce labor (lay-off) Contract work out Eliminate product features

• Remove roadblocks so your employees can produce • Assign resources to bottlenecks • Maximize internal capabilities • Focus on what the customer wants to buy
Lean Six Sigma

Approved for Public Release

3

What is Lean Six Sigma?
Combined 2 industry concepts: • Lean • Six Sigma Combines problem solving tools:
Kanban Kaizen SPC 5S Visual Mgt. DFSS MSA Root Cause Analysis

Value Stream Mapping

ANOVA DOE

JIT - Pull

Setup Reduction

Hypothesis Testing
Lean Six Sigma

Approved for Public Release

4

Lean • Focus on what is of VALUE to the customer • Separate non-value added from value added – Map the actions required to produce (value stream) – Eliminate activities that do not move the product closer to its final form • Make the remaining value added activities flow smoothly • Produce only what customers need (pull) • Continuous improvement Lean Six Sigma Approved for Public Release 5 .

Which is the better airline ticket? Traveling to Groton. CT Ticket A • $500 round trip • 6 hours • 3 layovers • Arriving in NYC Ticket B • $650 round trip • 3 hours • 1 layover • Arriving in Groton/New London What does value mean to you? Lean Six Sigma Approved for Public Release 6 .

Lean Philosophy Value – More to value than just cost – ―Defined by the ultimate customer‖ – Womack • Voice of the Customer (VOC) – Expressed in terms of • A specific product • A function or capability – Questions • What does the customer want to buy? • What would they pay extra for? Focus on what is of VALUE to the customer Lean Six Sigma Approved for Public Release 7 .

or function of the product or service on the first pass through the process. – An activity the customer is not willing to pay for – Waste Separate non value added from value added Lean Six Sigma Approved for Public Release 8 .Types of Activities Value-Added – Brings product closer to it’s final form – Changes the form. fit or function – An activity the customer is willing to pay for Non-Value-Added – Does not contribute to bringing the product to it’s final form – Doesn’t improve the form. fit.

8 Types of Waste UNDER-UTILIZED SKILLS Steps are wasteful. people are valuable Lean Six Sigma Approved for Public Release 9 .

Lean Example Valve Manufacturing • Objective: Reduce time to produce valves • Solution: Revise process – no temporary attachments “Legs” Lifting Blocks (2) Tapped holes for lifting “Feet” Lean Six Sigma Approved for Public Release10 .

Lean Example Certification Package Not Required Redundant Review Mill Test Report Minimize Rework Lean Six Sigma Approved for Public Release 11 .

Batch versus Continuous Flow Batch & Queue Processing Process A Process B Process C 10 Minutes 10 Minutes 30+ Minutes for order of 10 10 Minutes Continuous Flow Process Process Process C B A 12 Minutes for order of 10 Lean Six Sigma Approved for Public Release12 .

Lean Approach Dept 1 From: NAVSEA VSA Training Batch Dept 2 OUT OUT IN Continuous Flow DONE 4 3 IN IN Dept 3 Dept 4 OUT IN IN OUT 1 2 DONE Batch processing has a direct impact on the total Work-in-Process Approved for Public Release .

Lean Approach Transport Remove From Ship Disassemble Wait Set-up Machine Wait From: NAVSEA VSA Training Transport Re-Install Machine Start Broken Component = Value Added Time Time Repaired Component Finish = Non-Value-Added Time (WASTE) Value-Added time is typically only a small percentage of the total time Lean Six Sigma Approved for Public Release14 .

Approved for Public Release Lean Approach From: NAVSEA VSA Training Total Lead-time = 48 days Value added time = 315 secs !!!! Overtype with Section Title Lean Six Sigma Date / Reference / Classification 15 .

Approved for Public Release16 Lean Six Sigma . instructions • Result: Small time savings Lean Focus • Make all of the Value Stream visible • Reduce or eliminate Non-ValueAdded portions of the process • Result: Large time savings Time savings have a direct impact on • Cost • Capacity • Schedule • Flexibility • Resources • Etc.Lean Approach From: NAVSEA VSA Training Time LARGE amount of time saved Small Amount of Time Eliminated Traditional Focus • Improve Value-Added work steps • Better tools. machines.

piles. waterfalls. or back-ups Doubling production rate means halving the time waiting “‟Flow‟ production was an even more valuable innovation of Henry Ford‟s than his better-known „mass‟ production model.Continuous Flow Traditional Thinking: Batch Production—like a meandering stream with many stagnant pools.” Lean Six Sigma Approved for Public Release17 . and eddies Doubling production rate means doubling resources Continuous Flow Thinking: Pipeline with fast-flowing product – no stops.

not just the product itself • Eliminates activities that do not move the product closer to it’s final form – Reduces the 8 types of waste • Creates continuous flow Lean Six Sigma Approved for Public Release18 .How Does Lean Solve Problems? • Focuses on what is of VALUE to the customer – Understand customer expectations and requirements – In terms of the what the product provides.

Six Sigma Philosophy • Reduce variation • Y=f(X) • Making decisions based on data Lean Six Sigma Approved for Public Release19 .

What is ―Six Sigma‖? Change in quality philosophies Traditional “Goalpost” Philosophy LSL USL Taguchi Philosophy LSL USL Loss Loss $$ OK Loss $$ Loss Loss $$ $$ Anything outside the specification limits represents quality losses Lean Six Sigma Any deviation from the target causes losses to society Approved for Public Release20 .

How Does Six Sigma Solve Problems? Practical Problem (Define/Measure) Statistical Problem (Analyze) Practical Solution (Control) Statistical Solution (Improve) Y=f(x) Lean Six Sigma Approved for Public Release21 .

Six Sigma Example • Practical Problem – Pass rate for Technicial Exams was declining • Statistical Problem – Y=f(X) – Y – Scores – X • • • • Exam section Place of training How often skills are used (experience) Elapsed time since training • Statistical Solution – 3 sections of the exam are the highest trouble spots – Experience is the most significant factor in passing • Practical Solution – Focus training on 3 areas for inexperienced technicians Lean Six Sigma Approved for Public Release22 .

99966% of values are within specifications m LSL USL ss s Lean Six Sigma ss s ss s 23 Approved for Public Release A6 3s Process .What is ―Six Sigma‖? 99.

000 incorrect surgical operations per week • 2 short or long landings at most major airports each day • 11 hours of no electricity per month • 7 lost articles of mail per hour • 1 minute of unsafe drinking water per 7 months • 1.8s) 99.99966% (6s) • 20.000 lost articles of mail per hour • 15 minutes of unsafe drinking water each day • 5.Is ―Six Sigma‖ Overkill? 99% (≈3.7 incorrect surgical operations per week • 1 short or long landing every 5 years • 1 hour of no electricity every 34 years Approved for Public Release24 Lean Six Sigma .

Pipe Welding Quality Reduce concave & convex defects in pipe butt welds Experimented on the effects of: • Purge pressure • Starting point • Weld segment overlap • Intersegment temperature • Welder technique Convex Concave Identified key factors to control and ones that had no effect Lean Six Sigma Approved for Public Release25 .

Effluent Discharge SUBASE SUBASE Test Test Org ’s Org ’s Main MainStores Stores KIT 1 KIT 3 KIT 2 Controlled Industrial Facility Main Main Stores Stores Hardware Hardware Stores Stores Controlled Industrial Facility Before Notice Required Time to assemble Cost Frustration Months Weeks Overhead High Lean Six Sigma After Days Days Direct/Defined Low Approved for Public Release26 .

5 weeks Inspect Day tank Combine. cure and test 3 mixer batches to fill 1 Day tank Blend/mix Fill Day tank Receive raw materials Oven Agitate & oven C/T= 1 day 2 person 2 days 2 people 5 days 0 people 1 day 1 person 1 day 1. mix & oven Combine mixture in large tank Make samples and test them Take sample.5 people 10 days 1 person 1 day 2 people Lean Six Sigma Approved for Public Release27 .5 people 1 day 1 person 1 day 2 people 1 day 1.―Value Stream Mapping‖ Tile Material Manufacturer • • • • Mapped the ―value stream‖ Identified key constraints Implementing ―just go do its‖ Identified specific resources needed to support 2 ships per year Sub vendor Sub vendor Order raw materials and Day tank EB places PO with SII EB / NGNN Cleaned Day tank Raw materials Day tank 1 then 2 to 3 weeks later Day tank 2 1.

Ways To Get To Six Sigma • Identify critical inputs & control them • Quantifiable management – Measure performance – Decisions based on data Y=f(x) Lean Six Sigma Approved for Public Release28 .

Ways To Get To Six Sigma Control Methods Best • Type 1 Corrective Action – Countermeasure • Type 2 Corrective Action – Flag • SPC/SPM – Empowered Operators • Type 3 Corrective Action – Inspection • SPC/SPM – Operators Not Empowered • Standard Operating Procedure • Warning Signal – Used to Detect Defects • SPC/SPM .Wallpaper Lean Six Sigma Approved for Public Release29 .

“But we aren‟t mass production” Look for repetition: • Valve manufacturing • Certification package review • Pipe welding • Effluent discharge Lean Six Sigma Approved for Public Release30 .

then there is a process.“But we aren‟t mass production” • Product Families – Different products that follow the same steps • Processes – Repetitive tasks • For a product • For a service • For just normal day to day activities – “If it‟s not the first time.” Lean Six Sigma Approved for Public Release31 .

Supplier Lean Outreach Approved for Public Release .

Why Supplier Lean Outreach? • Extend Lean and Six Sigma to suppliers 30% 31% Purchased Government Material Material Shipyard Labor 39% Block III (SSN787) Costs Lean Six Sigma Approved for Public Release33 .

and cycle time via the application of Lean Six Sigma tools and techniques. • Create a win-win between supplier and EB – Tangible improvement – Benefits both companies • Funded for 2 projects/year Lean Six Sigma Approved for Public Release34 .Goal Conduct joint process improvement projects with VIRGINIA Class vendors to reduce defects.

roadblocks 3. Value Stream Analysis & Development of Improvement Plan 4.Methodology 1. Voice of the Customer – All customers not just purchasing 2. Kick-off with Vendor – Identify problems. Improvement Plan Execution and Follow-on Onsites Lean Six Sigma Approved for Public Release35 . issues.

” .Eliyahu Goldratt Approved for Public Release .How To Get Started “We all tend to concentrate on taking corrective actions that we know how to take. not necessarily concentrating on the problems we should correct and the actions needed to correct (them).

etc.How To Get Started Involve the employees • Examine the detailed process with them • Empower them to make process changes to: – Eliminate non-value-added steps – Keep adding value continuously without interruptions • Ask the right questions – What can we do to save time? – Not: What can we do to save money? • Get to the root causes – 5-Whys. Lean Six Sigma Approved for Public Release37 .

Comple tion Rate 20 Lean Six Sigma Approved for Public Release38 .LeadTi me  Jobs In WIP 200   10 days Avg.How To Get Started Reduce work in process (WIP): WIP = Waiting = Longer lead times Delayed sales Increased expenses = Less Profit! Completions 3 4 1 1 5 3 2 1 2 5 1 6 1 1 1 2 6 1 4 1 1 1 1 1 3 2 5 1 1 1 200 Units of Work In Process 20 Units/Day Avg.

Goldratt • The Goal. Womack & Jones • Lean Six Sigma: Combining Six Sigma Quality With Lean Speed. L.How To Get Started Books to read: • Lean Thinking. George • Theory of Constraints. Goldratt Lean Six Sigma Approved for Public Release39 . M.

How To Get Started Communicate with Electric Boat • Things you are doing • Ask for clarification on our needs – Voice of the Customer Lean Six Sigma Approved for Public Release40 .

Wrap .Up • What is Lean Six Sigma? • What can Lean Six Sigma do? • How to get started Lean Six Sigma Approved for Public Release41 .

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