LEAN SIX SIGMA

Dr Simmy Marwa
 Six Sigma
• Degree of variation;
• Level of performance in terms of defects;
• Statistical measurement of process capability;
• Benchmark for comparison;
• Process improvement methodology;
• It is a Goal;
• Strategy for change;
• A commitment to customers to achieve an
acceptable level of performance
 Definition

• Business Definition
A break through strategy to significantly
improve customer satisfaction and shareholder
value by reducing variability in every aspect of
business.
• Technical Definition
A statistical term signifying 3.4 defects per
million opportunities.
 Cont.
Sigma Defects Per Million Rate of
Level Opportunities Improvement

1 690,000
2 308,000 2 times
3 66,800 5 times
4 6,210 11 times
5 230 27 times
6 3.4 68 times
 Facets of Six Sigma
• Metric
• Benchmark
• Vision
• Philosophy
• Method
• Tool
• Symbol
• Goal
• Value
 History
• Six Sigma Was Developed at Motorola in the
1980’s As a Method to Improve Process
Quality.
• It Was First Used to Improve Manufacturing
Process Capability and Then Migrated to
Business Processes Capability
• Companies That Have Deployed Six Sigma:
Bank of America, Motorola, GE, IBM, Kodak
and Many More
 Focus of Six Sigma
 Know What’s Important
to the Customer (CTQ)

 Reduce Defects (DPMO)

 Center Around Target (Mean)

 Reduce Variation (Standard Deviation)

 DMAIC
DMAIC is an acronym for five interconnected phases:
* Define the project goals and deliverables for both
internal and external customers
* Measure the process to determine current performance
* Analyze and determine the root cause(s) of the defects
* Improve the process by eliminating defects
* Control future process performance
Cont.
 Define
• Six Sigma is about "solving a problem with an
unknown solution."
• To unearth the solution, the problem needs to first be
defined in concrete measurable terms.
• The team identifies critical-to-quality (CTQ)
characteristics that have the most impact on quality–
separating the "vital few" from the "trivial many."
• With the CTQs identified the team can create a map
of the process to be improved with defined and
measurable, deliverables, and goals.
 Measure
• The team begins with the proper metrics.
• Critical measures that are necessary to evaluate the success of the project are
identified and determined.
• Valid and reliable metrics to monitor the progress of the project are established during
the Measure phase; input, process, and output indicators are identified.
• Once the project has a clear definition with a clear measurable set of indicators, the
process is studied to determine the Key Process Steps and an operational plan defined
to measure the indicators.
• Potential impacts on CTQs from each input are considered with respect to the defects
currently generated in the process.
• Key Inputs are prioritized to establish a short list to study in more detail and to
determine the potential ways the process could go wrong.
• Once the reasons for input failure are determined, preventative action plans are put
into place.
 Analyze
• The team determines the causes of the problem that needs improvement and
how to eliminate the gap between existing performance and the desired level
of performance.
• This involves discovering why defects are generated by identifying the key
variables that are most likely to create process variation.
• As the Six Sigma team moves through the Analyze stage and subsequent
Improve stage of the process they will discover various process improvement
scenarios and determine which has the best net benefit impact to the
company.
• If the team has not already identified major improvements, then the
breakthrough often results from careful process analysis with data. Six Sigma
analysis techniques are valuable tools to uncover more difficult solutions.
 Improvement
• Here the process transitions into solutions.
• Critical inputs have been verified and optimized toward nailing down the
problem causes.
• Once problem causes are determined in the Analyze phase, the team finds,
evaluates through testing, and selects creative new improvement solutions.
• The team identifies and quantifies what will happen if needed
improvements are not made and what will happen if the improvements take
too long. This develops a cost/benefit analysis.
• More often than not simple process experimentation and simulation bring
the team big gains in this step.
• Also at the Improve stage, the team develops an implementation plan with
a change management approach that will assist the organization in
implementing and adapting to the solutions and the changes that will
result from them.
 Control
• Success in the Control phase depends upon how well the team did in the previous
four phases.
• The keys are a solid monitoring plan with proper change management methods that
identify key stakeholders.
• Lessons learned are now implemented and tools are put in place to ensure that the key
variables remain within the acceptable ranges over time so that process improvement
gains are maintained.
• The team develops a project hand off process, reaction plans, and training materials
to guarantee performance and long-term project savings.
• Documenting the project is very important so that the new procedures and lessons
learned are maintained and provide concrete examples for the organization. At the
close of the Control phase, ownership and knowledge is transferred to the process
owner and process team tasked with the responsibilities.
• Finally, the team identifies what the next steps are for future Six Sigma process
improvement opportunities by identifying replication and standardizations
opportunities and plans.
LEAN SIX SIGMA
 Lean
• Lean Sigma is a combination of two powerful
and proven process improvement methods
Lean and Six Sigma, that builds on existing
organization capability.
 What is Lean?
• Lean, pioneered by Toyota, focuses on the efficient
operation of the entire value chain.
• Focus areas:
– Remove non-value added steps to:
• Reduce cycle time
• Improve quality
– Align production with demand.
– Reduce inventory.
– Improve process safety and efficiency.
 Cont.
• Six Sigma, developed by Motorola, made famous by
GE, it can be defined as a:
– Measure of process capability
– Set of tools
– Disciplined methodology
– Vision for quality
– Philosophy
– Strategy
Cont.
Cont
 Principles of Lean
 Specify value in the eyes of the customer

 Identify value stream; eliminate waste and

 variation

 Make value flow at pull of the customer

 Involve, Align & Empower Employees

 Continuously improve knowledge in pursuit

 of perfection
 Lean Sigma Tools

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 RISK PRIORITY NUMBER (RPN) =
SEVERITY X 0CCURRENCEX ESCAPED DETECTION
Score
Cont
Category 5 4 3 2 1
Severity Severe High Moderate Minor Negligible Measurement System Analysis
(SEV) Glass Inspection Test
Operator 1 Operator 2 Operator 3
Occurrence Very High High Moderate Low Very Low Item Test 1 Test 2 Test 2
Test 1 Test 1 Test 2
(OCC)
1
Document failure modes 2

for products
Escaped
Detection
Very High andModerate
High processes
Low Very Low 3
4
to identify defects' root cause
(DET)
5
6
7
8 Verify
Verifyassessment/
assessment/
9 measurement
measurementsystems
systems
1
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1 2 3
1 - - +

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3 + - -

4 + + +

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Designed experiments
experimentsto to
ˆy = y +  A A +  B B +  AB A • B
make process robust
make process robust to
2 2 to 2

variation
variation   
ŝ = s̄ + A A + B B + AB A • B
2 2 2
 Differences/Similarity with other Quality
Tools
Difference
• Sponsored and directed by leadership
• Aligned with business objectives and
tactics
• Focused on delivering business
results
• Track record for delivering business
results
• Disciplined and systematic
execution process
• Brings in new tools to most
companies – DOE, hypothesis
testing, FMEA, Kanbans, PokaYoke
Similarity
• Uses many tools already
familiar to many people –
fishbone, process flow, SPC,
brainstorming
• Aligned with quality efforts
• Uses a logical problem solving
approach that will not be new to
some
• Aligned with past quality and
reliability efforts – TQM,
Baldrige, Deming
 Focus - Lean/Sigma
Lean:
• Reduction of the “7 hidden wastes” or non-value
added activities to reduce cycle time.
Six Sigma:
• Reduction of variability to improve quality.
Both Lean and Six Sigma Tie Improvements to ££
 Lean Sigma – DMAIC Strategy
• Define
– Identify and Prioritize Opportunities
– Select Your Project
– Define the Goals and Objectives
– Form Cross functional Team
– Understand Customer Requirements
• Measure
– Define and Analyze the Current Process
– Assess the Capability of the Measurement Process
– Assess the Current Capability of the Process
– Variance Reduction
 Cont.
• Analyze
– Identify the Key Input Variables
– Discover the Relationship between the Inputs and Outputs
– Identify the Root Causes of the Problems
• Improve
– Identify and Test the Proposed Solutions
– Re-assess Capability
– Implement Solution
• Control
– Document Results and Return on Investment
– Take Actions to Hold the Gains
– Celebrate and Communicate