LSS Genera Lpresentation 92316 GGarcia

DALLAS Center for Performance Excellence
• Understand and apply recently issued GASB pronouncements

• Identify and discuss governmental accounting best practices and other
relevant topics to local governments
• Explain and discuss changes to the Single Audit and Uniform Grant
Guidance
• Explain Ethics and Diversity as it relates to governmental entities
• Define and interpret the Public Funds Investment Act
• Understand how to impact risk management with data
• Discuss the state of the economy
• Understand concepts of occupational fraud and internal controls
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Agenda:
• What is Lean Six Sigma?
• The Lean Six Sigma Organization
• The Methodology for Improvement
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A strategic problem solving and process improvement strategy that

combines two powerful methodologies that focus on reducing waste
and variation.
• Lean Manufacturing Principles = Waste reduction
• Six Sigma Methodology = Variation reduction
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• Helping the organization make more money by improving

customer value and efficiency
• Focusing on improving quality (i.e., reducing waste and variation)
by helping the organization to produce products or services
better, faster and cheaper
• Focusing on customer requirements, defect prevention, cycle
time reduction and cost savings
• Identifies and eliminates costs which provide no value to
customers
“Six Sigma is about the quality of business, not the business of quality.” Dr. Mikel Harry
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Lean Six Sigma creates:

• An environment for improving productivity and efficiency
• An opportunity to make improvements to traditional processes
• A disciplined, knowledge based approach designed to enhance
customer satisfaction
• An environment which fosters innovation
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• A structured business
management philosophy
• A driver for breakthrough
performance
• A way of thinking and making
decisions
• A systematic and focused
approach to solving problems
• A set of tools and concepts
that change the culture of an
organization for the better
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• A measure that describes how spread out or scattered s a set of

data is
• It is also known as measures of dispersion or measure of spread
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Six Sigma can be converted to relatable terms:
Sigma DPMO Long Term Yield

Level
2 308,537 69.15%
3 66,807 93.32%
4 6,210 99.38%
5 233 99.98%
6 3.4 99.99966%
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Goal
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• Lean Manufacturing is Toyota Production System

• A set of principles, concepts, and techniques
• A relentless pursuit in the elimination of waste.
• A just-in-time system that delivers:
• Exactly what customers need
• When customers need it
• In the quantity customers need
• In the right sequence
• Without defects
• And at the lowest possible cost
Henry Ford Taiichi Ohno Shigeo Shingo
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Lean focuses on eliminating waste:

• Found in the process
• Identify the non-value added steps in a process
Transportation to
Waiting Inventory Area Final
Inventory Area
26 Days Inventory
29 Days 15 Days
70 day Lead
time
77 second
Cycle Time
Prep File Process File Sign Off

42 seconds 20 seconds 15 Seconds
= Non-Value Added
Raw Finished
Material Goods
= Value Added
Taiichi Ohno: “Reduce the time line by removing non-value added wastes”
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• Value added: work elements that actually transform the product

or service in a way that the customer is willing to pay for it
• Business value added: work elements that transform the product
that are necessary but do not add value to the product or service
• Non-value added: work elements that transform the product that
are not necessary or add value to the product or service
Reduce Eliminate
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Waste is defined as:

Transportation
• Anything that does not

contribute to a product or Motion Inventory
service
• If it does not add value, it 7
adds WASTE! Wastes Over-
Waiting Production
Over-
Defects Processing
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Types of Waste
• Over-production – Production that is more than needed or
before it is needed.
• Inventory – Excess projects and material not being processed.
• Over-processing – More work or higher quality than is
required by the customer
• Defects – Efforts caused by rework, scrap, and incorrect
information
• Motion – Unnecessary movements
• Transportation – Unnecessary movements of products &
materials
• Waiting – Wasted time waiting for the next step in a process
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The Belts
In Lean Six Sigma there are different levels of experience
and curriculum that are taught
• Master Black Belt
• Black Belt
• Green Belt
• Yellow Belt
• Blue (White) Belt
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Master Black Belt

The Master Black Belt is:
• Certified professional well versed in the Lean Six Sigma
methodology
• Completes 200 hours of accumulated training
• Trains and mentors different level Belts
• Participates in strategic assessment of Lean Six Sigma
program
• Leads and completes improvement projects
• Full understanding of DMAIC
• Understand and interprets Lean Six Sigma tools and
principals
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Black Belt
The Black Belt is:
• Certified professional well versed in the Lean Six Sigma
methodology
• Completes 160 hours of training
• Leads and completes improvement projects
• Full understanding of DMAIC
• Understand and interprets Lean Six Sigma tools and
principals
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Green Belt
The Green Belt is:
• Certified professional who is versed in Lean Six Sigma
methodology
• Typically a part-time role who leads improvement
projects
• Understands The aspects within DMAIC
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Yellow Belt
The Yellow Belt is:
• Is a professional who is versed in the basics of Lean Six
Sigma
• Typically a part-time role who aids in identification or
participation in projects
• Understand the aspects of Define, Measure, and
Improve
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Blue (White) Belt

The Blue (White) Belt is:
• Receives basic introduction to Lean Six Sigma concepts
and tools
• Complete two hour training
• Participates and identifies projects
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Methodology
The methodology for all continuous improvement is
DMAIC
• Define – identify the opportunity for improvement
• Measure – measure the capability of the process and
identify factors
• Analyze – evaluate the factors to identify the root cause
of waste and variation
• Improve – identify and implement improvements
• Control – implement controls for sustainment
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Define
The Define phase objective is to:
• Understand the customer’s needs and requirements
• Understand the product, service or process to be
improved
• Understand the scope of the improvement effort
• Identify and select a project for improvement
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Measure
The Measure phase objective is to:
• Evaluate the measurement system of the process
• Evaluate the baseline capability of the process
• Identify the variables that have the greatest opportunity
to impact the output
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Analyze
The Analyze phase objective is to:
• Evaluate the relationship of variables on the output of
the process
• Eliminate the insignificant factors
• Isolate the variables that have significant effect on
output of the process
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Improve
The Improve phase is about:
• Develop the improvement ideas for process
improvement
• Implement the process improvement (Kaizen)
• Validate the new process capability
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Control
The Control phase objective is to:
• Design and implement a control plan for the process
• Ensure standardization of the process through
procedures, work instructions, and forms
• Implement mistake proofing ideas (Poka-Yoke)
• Hand off project to process owners
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Blue Belt Training Agenda:

• What is Lean Six Sigma?
• The Lean Six Sigma Organization
• The Methodology for Improvement
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Kaplan, Robert S. and Norton, David P. (1996). Translating Strategy into Action: The Balanced
Scorecard. Harvard Business School Press.
Eckes, George. (2001). The Six Sigma Revolution: How General Electric and Others Turned Process
Into Profits. John Wiley & Sons.
George, Mike; Rowlands, Dave and Kastle, Bill. (2004). What is Lean Six Sigma?. McGraw-Hill.
George, Michael L. (2003). Lean Six Sigma For Service. McGraw-Hill.
Pyzdek, Thomas. (2003). The Six Sigma Handbook, Revised and Expanded: A Complete Guide for
Green Belts, Black Belts, and Managers at All Levels. McGraw-Hill Books
Six Sigma Academy. (2004). Six Sigma Training Manual [PowerPoint slides]. Retrieved from Six Sigma
Academy.
Six Sigma Consultants. (2002). Six Sigma Training Manual [PowerPoint slides]. Retrieved from Six
Sigma Consultants.
Tapping, Don. (2003). The Lean Pocket Guide. MCS Media, Inc.
Womack, James and Jones, Dan. (1999). Learning to See: Value Stream Mapping To Create Value
and Eliminate Muda. Lean Enterprise Institute.
OpenSourceSixSigma.com, (2009). Project Selection Process [PowerPoint slides]. Retrieved from
Open Source Six Sigma.
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DALLAS Center for Performance Excellence

• Understand and apply recently issued GASB pronouncements

A strategic problem solving and process improvement strategy that

• Helping the organization make more money by improving

Lean Six Sigma creates:

• A measure that describes how spread out or scattered s a set of

Six Sigma can be converted to relatable terms:

Sigma DPMO Long Term Yield

• Lean Manufacturing is Toyota Production System

Henry Ford Taiichi Ohno Shigeo Shingo

Lean focuses on eliminating waste:

Prep File Process File Sign Off

• Value added: work elements that actually transform the product

Waste is defined as:

• Anything that does not

Master Black Belt

Blue (White) Belt

Blue Belt Training Agenda:

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