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

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 Paths to Cost Reduction

• Cut services • Remove roadblocks so your

employees can produce
• Reduce labor (lay-off)
• Assign resources to
• Contract work out bottlenecks
• Eliminate product features • Maximize internal capabilities
• Focus on what the customer
wants to buy
Lean Six Sigma
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 What is Lean Six Sigma?
Combined 2 industry concepts:
• Lean
• Six Sigma

Combines problem solving tools:

Kanban Visual Value ANOVA DFSS

Kaizen Mgt.
Stream
5S Mapping DOE MSA
SPC
Setup Root Cause
JIT - Pull Reduction Hypothesis
Testing Analysis

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 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

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 Which is the better airline ticket?
Traveling to Groton, CT

Ticket A Ticket B
• $500 round trip • $650 round trip
• 6 hours • 3 hours
• 3 layovers • 1 layover
• Arriving in NYC • Arriving in
Groton/New London
What does value mean to you?
Lean Six Sigma
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 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
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 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, 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
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 8 Types of Waste

UNDER-UTILIZED
SKILLS

Steps are wasteful, people are valuable

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

“Feet”

Lean Six Sigma

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 Lean Example
Certification Package

Not Required

Mill Test Report

Redundant Review

Minimize Rework

Lean Six Sigma

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 Batch versus Continuous Flow
Batch & Queue Processing

Process Process Process

A B C

10 Minutes
10 Minutes
10 Minutes
30+ Minutes for order of 10

Continuous Flow
Process Process Process
A B C

12 Minutes for
order of 10
Lean Six Sigma
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 Lean Approach From: NAVSEA VSA Training

Dept 1
Batch Continuous Flow
Dept 2 DONE 4 3
IN OUT
OUT

IN IN

Dept 3
1 2

Dept 4

OUT IN IN

OUT

DONE

Batch processing has a direct impact

on the total Work-in-Process
Approved for Public Release
 Lean Approach From: NAVSEA VSA Training

Disassemble
Wait Transport
Transport Wait Set-up
Machine Machine Re-Install
Remove From
Ship

Start Time
Finish
Broken Repaired
Component Component

= Value Added Time = Non-Value-Added Time (WASTE)

Value-Added time is typically only a small

percentage of the total time
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 Approved for Public Release

Lean Approach From: NAVSEA VSA Training

Total Lead
Lead-time
-time = 48 days
Value added time = 315 secs !!!!
Overtype with Section Title

Lean Six Sigma Date / Reference / Classification

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 Lean Approach From: NAVSEA VSA Training

Traditional Focus
• Improve Value-Added
work steps
• Better tools, machines,
Time
instructions
Small Amount of
LARGE amount Time Eliminated
• Result: Small time
savings

of time saved
Lean Focus Time savings have a direct
• Make all of the Value Stream visible impact on
• Reduce or eliminate Non-Value-Added portions of
the process • Cost • Capacity
• Result: Large time savings • Schedule • Flexibility
• Resources • Etc.
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 Continuous Flow

Traditional Thinking: Continuous Flow Thinking:

Batch Production—like a meandering
stream with many stagnant pools,
waterfalls, and eddies
Doubling production rate means
doubling resources
Pipeline with fast-flowing product –
no stops, piles, 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.”

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 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, 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
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 Six Sigma Philosophy
• Reduce variation
• Y=f(X)
• Making decisions based on data

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 What is “Six Sigma”?
Change in quality philosophies
Traditional “Goalpost” Philosophy Taguchi Philosophy
LSL USL LSL USL

Loss Loss Loss Loss

$$ $$ $$ $$
OK Loss

Anything outside Any deviation from

the specification limits the target causes
represents quality losses losses to society
Lean Six Sigma
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How Does Six Sigma Solve
Problems?

Practical Problem Statistical Problem

(Define/Measure) (Analyze)

Practical Solution Statistical Solution

(Control) (Improve)

Y=f(x)
Lean Six Sigma
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 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

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 What is “Six Sigma”?
99.99966% of values are within specifications

LSL USL

     
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 Is “Six Sigma” Overkill?
99% (≈3.8)
• 20,000 lost articles of
mail per hour
• 15 minutes of unsafe
drinking water each day
• 5,000 incorrect surgical
operations per week
• 2 short or long landings at
most major airports each
day
• 11 hours of no electricity
per month
Lean Six Sigma
99.99966% (6)
• 7 lost articles of mail per
hour
• 1 minute of unsafe drinking
water per 7 months
• 1.7 incorrect surgical
operations per week
• 1 short or long landing
every 5 years
• 1 hour of no electricity
every 34 years
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 Pipe Welding Quality
Reduce concave & convex defects in pipe
butt welds

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