Overview of Lean Six Sigma

PRESENTED BY THE UNIVERSITY OF TEXAS-SCHOOL OF PUBLIC HEALTH

This material was produced under grant number SH-22316-SH-1 from the Occupational Safety and Health
Administration, U.S. Department of Labor. It does not necessarily reflect the views or policies of the U.S.
Department of Labor, nor does mention of trade names, commercial products, or organizations imply
endorsement by the U.S. Government.
 Learning Objectives

Upon completion of this course, the participant will be able to: 

• Define Lean Six Sigma
• Compare Lean with Six Sigma to process improvement
• Select appropriate phases to apply Six Sigma DMAIC
Methodology
• Outline the integration of Lean and Six Sigma to process
improvement
 How Will Lean Six Sigma Affect You?

 Enables each of us to lead change by challenging what we do and how

we work
 Why am I doing what I am doing?
 Is it adding value to my client and Fannie Mae?
 Gives us practical metrics to evaluate success
 Involves you and your team members in creating solutions
 How does my work affect my customer?
 How does my work affect other teams (up and down stream)?
 How can I do it better?
 Provides new skills for life!

The
The Lean
Lean Six
Six Sigma
Sigma methodology
methodology will
will lead
lead to
to more
more meaningful
meaningful jobs
jobs (that
(that bring
bring
value
value to
to our
our patients)
patients) in
in aa better
better team
team environment!
environment!
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What is Lean Six Sigma?

Lean Six Sigma is

 A common improvement methodology to impact the overall
business
 Fact-based decision making
 Focused on minimizing waste and variation
 Focused on strategic business priorities, including the voice of the
customer
 Works best for narrowly scoped projects
 Dedicated resources with clear accountability
 Quantified project benefits
 Emphasis on sustaining the gains!
 Demonstrated track record of success across industries
Lean VS. Six Sigma to process improvement
Lean Defined…
 Lean optimizes the process design
 Came from process efficiency practices
at Toyota
 Addresses the fundamental flow of a
process
 Is a philosophy of continuous
improvement that finds and reduces
 Wasteful or unnecessary activities
 Illogical or inefficient process
sequencing
 Rework
 Excessive cycle times
 Lean improvements are typically logical
and easy to understand
 Lean addresses problems that are
a “mile wide and an inch deep”
VS Six Sigma Defined…
 Six Sigma is a process improvement
methodology addressing defects which
arise due to variability in process
execution
 A defect can be any missed target or
nonconformance to standard
 Six Sigma seeks the causes of
variability
 Six Sigma projects often apply deep
analysis
 Solutions are not readily apparent
“Lean Six Sigma” Defined

 Lean= efficient process design

 Six Sigma= defect-free process execution
 “Six Sigma” is a metric used to evaluate the process
 Example:
 A “defect” is the failure of any process to deliver the intended
result
 3.4 defects per million opportunities for defects (99.9997%
good)
 The 5 Principles Of Lean

Elimination of waste . . . Including unnecessary process steps

Lean techniques are used to reduce unnecessary steps, eliminate
rework, save time, save cost and extend capacity of valuable
resources by:
1. Specifying the value of the process
2. Identifying the value stream for each process
3. Allowing value to flow without interruptions
4. Letting the customer pull value from the process
5. Continuously pursuing perfection

Identifying
Identifying waste
waste and
and making
making itit visible
visible is
is the
the first
first step
step
Process Focus Of Lean Six Sigma

Process
X Y = f(x)
Y

Inputs (X1, X2 . . Xn) Output

Independent Dependent on input
Cause Effect
Control Monitor

Lean
Lean focuses
focuses on
on optimizing
optimizing process
process design
design
 Dynamics Of Execution Strategy
The Funnel Effect

30 – 50 Xs (or more!) Business

Need
Define Phase
10 – 15 Xs
Measure Phase Y

8 – 10 Critical Xs X
Analyze Phase

4 – 8 Critical Xs Y = f(X)
Improve Phase

3 – 6 Critical Xs
Control Phase Sustain!

KPIV = Key Process Input Variable Optimized Process

DMAIC Process

Business
Define Need

Measure Y

Analyze X

Improve Y = f(X)

Control Sustain!
The DMAIC Process Improvement Model

1 DEFINE
Who are the customers
2 MEASURE
How is the process performing

5
And what are their priorities?
and how is it measured?

CONTROL

3 IMPROVE
How do we remove the causes
of the defect?
4 ANALYZE
What are the important causes
of the defect?
1. Define Phase

• Confirm Process Requirements (voice of customer)

• Validate the definition of a “defect”
• High level process mapping
• Charter the project using metrics aligned with business
objectives
• Execute “quick wins” when possible

Confirm
Confirm the
the business
business case
case for
for working
working the
the project
project
 2. Measure Phase

• Collect baseline data on project metrics (from the Define

phase)
• Verify integrity of baseline data for project metrics
• Look for patterns in the data
• Quantify the historical performance
• Begin detailed process mapping

Before
Before trying
trying to
to “fix”
“fix” the
the problem,
problem, confirm
confirm that
that you
you can
can
measure
measure the the process
process
 3. Analyze Phase

• Apply non-statistical techniques to brainstorm potentially

critical Xs which may be driving variability in the project
metrics (again from the Define phase)
• Apply statistical techniques to investigate the potentially
critical Xs

Only
Only after
after completing
completing Define
Define and
and Measure
Measure do do you
you begin
begin
the
the detailed
detailed investigation
investigation into
into Critical
Critical Xs
Xs

14
 4. Improve Phase

• Develop potential solutions based on Critical Xs from

the Analyze phase
• Pilot the “best fit” solution
• Plan for full-scale implementation

Solutions
Solutions are
are based
based on
on findings
findings from
from the
theAnalyze
Analyze phase
phase
 5. Control Phase

• Develop Control Plan

• Implement full-scale improvement
• Implement controls
• Train personnel and hand-off control plan to Management

Final
Final solution
solution is
is robust
robust and
and becomes
becomes ingrained
ingrained in
in the
the operation.
operation.
The DMAIC Process with Tools
DAY 1
Define
PHASE 1&2
Measure Tools:
• Voice of Customer (VOC) Analysis
• Process Mapping
Analyze • Value Stream Mapping

Improve

Control
The DMAIC Process with Tools
DAY 2
Define
PHASE 3&4
Measure Tools:
• FMEA
• Quick Wins 5S
Analyze • The 8 Wastes

Improve

Control
The DMAIC Process with Tools
DAY 3
Define
PHASE 5
Measure Tools:
• Controls Plans
• Lean Visual Controls
Analyze • Mistake Proofing (Poke Yoke)

Improve

Control
 Integrating Lean And Six Sigma

Define
 No matter the nature of a project,
value and objectives must be
understood
Measure
 No matter the nature of a project, the
process must be measurable
 Depending on the nature of a project,
Analyze
Lean tools, Six Sigma tools, or a Lean
combination may be best to solve the SIX SIGMA
problem Tools TOOLS
Improve
 No matter the nature of a project, the
final solution must be controlled.

Control
Summary
• Lean Six Sigma gives you practical metrics to evaluate
success in the context of corporate objectives.
• Lean Six Sigma is used to reduce unnecessary steps,
eliminate rework, save time, save cost and extend capacity
of valuable resources.
• Five phases of DMAIC process is define, measure,
improve, analyze, and control.
Thank You