Introduction to Lean Six Sigma

A Human Resources Perspective

The History of Lean Six
Sigma
A New Approach to Quality
Why 6 Sigma?
History of Lean Six Sigma
What is in a name?
Lean -- Focuses on removing waste (muda)
from processes
Six Sigma – Focuses on understanding and
reducing variation in processes
Lean Six Sigma (LSS) – Combines both
approaches
What is the Concept behind LSS?
As wasteful activities are removed overall
process variation is reduced
Lean Six Sigma is one of many
methodologies developed through the
Quality Revolution
Expanding Application of LSS
Initially applied in production environments
Manufacturing
Supply Chain
Maintenance Repair and Overhaul (MRO)
Rapidly grew into transactional applications
Financial Institutions
Insurers
Continued to expand to services
Hospitals and Health Care
A Couple of Questions
1. What does “Six Sigma” mean?
a. A process that has a six sigma level of
quality experiences only three defects per
one million opportunities.
2. Is it Important to have a six sigma level of
quality?
a) It depends on the customers perception of
quality. If you are landing airplanes, it is
critical to obtain at least a six sigma level of
quality. If you are manufacturing coffee
stirrers, lower levels of quality may be
completely acceptable.
How Good is Good Enough?
Lean Six Sigma Methodology
What is Lean Six Sigma?
LSS Methodology
DMAIC Process
Key Concepts
Understanding Variation
Voice of the Customer
Voice of the Process
Key Concepts of LSS
Understanding of Variation
Two types of variation
 Controlled variation (Common Causes)
 Uncontrolled variation (Assignable/Special Causes)
Improvement strategy based on type of
variation
 Controlled variation = Change the process
 Uncontrolled variation = Deal with the special
events
Voice of the Customer (VOC)
How does the customer describe quality
What is the customers tolerance for defects
VOC is often expressed as specification limits
Goals should align with the voice of the
 DMAIC Process
• What is the problem?
Defin
e
• What is the goal?
• What is the current performance?
Meas
ure
• What is the defect rate?
• What are the sources of process variation?
Analy
ze
• What are the root causes of defects?
• How do we change the process?
Impro • How do we verify our changes will improve the
ve process?
• Are the improvements to the process consistent
over time?
Contr
ol
• How do we maintain the improvement into the
future?
 Key Concepts of LSS
Voice of the Process (VOP)
What is the current process capability?
 How much variation is in the process?
 How many defects does it produce?
 What is the process average?
What process inputs are important to final
quality?

Y=ƒ(x)
The Output (Y) is a function (ƒ) of the
inputs (x)
Lean Six Sigma Success
Factors
What are the building blocks for successful LSS
programs?
Considerations for LSS
Success
Organizational Factors
Commitment of Senior Management
Clear organizational vision and goals
Effective LSS training strategy
LSS Team Factors
Flexibility
Practicality
Focus on Customers (Internal and external)
Strengths of LSS Methodology
Data Based
Scalable
Structured
Considerations for LSS
Success
LSS Challenges
It is not a quick win approach to continuous
improvement
It requires an investment
It requires a degree of organizational
humility
Questions for Consideration
1. You have mentioned that LSS is an
organizational approach. Can I learn LSS
concepts and apply them to my area of
expertise?
2. What are the challenges faced when
trying to apply LSS to HR processes when
the larger organization hasn’t embraced
the methodology?
3. What are the unique challenges for HR in
the application of LSS?
4. What types of process are idea for LSS
application?
Appendix
Supplemental Material
 Improvement Process Road Map

Define Measure Analyze Improve Control

Define Measure Analyze Improve Control

Activity Activity Activity Activity Activity
• Identify Problem • Develop Operational • Propose Critical X’s • Develop Potential • Develop SOP’s, Training
• Complete Charter Definitions • Prioritize Critical X’s Solutions Plan & Process Control
• Develop SIPOC Map • Develop Data Collection • Conduct Root • Develop Evaluation System
• Finalize Project Focus Plan Cause Criteria & Select Best • Implement Process
• Collect Baseline Data Analysis on Critical Solutions Changes and Controls
Tools • Determine Process X’s • Work with EBPM&C to • Monitor & Stabilize
• Charter Form Performance/Capability • Validate Critical X’s create Develop ‘To-Be’ Process
• Multi-Generational • Validate Business • Prioritize Root Process Map(s) • Transition Project to
Plan Opportunity Causes • Develop High-Level Process Owner
• Stakeholder Analysis • Review EBPM&C process Implementation Plan
• Communication Plan maps to create ‘As-Is’ Tools • Develop Pilot Plan & Tools
• SIPOC Map Process Map • Pareto Charts Pilot Solution • Control Charts
• Voice of Customer • Fishbone Diagrams • Standard Operating
(VOC) Tools • Brainstorming Tools Procedures (SOP’s)
• Defect • Operational Definitions • 5 Why’s • Brainstorming • Communication Plan
definition • Data Collection Plan • Non Value-Added • Solution Selection • Implementation Plan
• Goal definition • Graphical Analysis Analysis Matrix • Training Plan
• Pareto Chart • ‘To-Be’ Process Maps • Process Control Plans
• Histogram • Piloting and Simulation
• Box Plot
From: NYISO Green Belt Training Module—Intro to LSS
• Run Chart
• Detailed ‘As-Is’ Process
Maps
Sources of Information
 The New Economics: W. Edwards Deming
 Lean Thinking: James P. Womack and
Daniel T. Jones
 Understanding Statistical Process Control:
Donald J. Wheeler and David S. Chambers
 Lean Production Simplified: Pascal Dennis
 Knowledge gained producing training
material and supporting LSS training for
the following organizations:
 Delta Air Lines, Inc.
 New York Independent System Operator