Overview of Lean Six Sigma

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 Lean Six Sigma methodology will lead to more meaningful jobs (that bring
value to our patients) in a better team 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 waste and making it visible is the first step
Process Focus Of Lean Six Sigma
X
Process
Y = f(x)
Inputs (X1, X2 . . Xn)
Independent
Cause
Control
Y
Output
Dependent on input
Effect
Monitor
Lean focuses on optimizing process design
The Funnel Effect
Dynamics Of Execution Strategy
30 – 50 Xs (or more!)
Define Phase
Business
Need
Measure Phase
10 – 15 Xs
Analyze Phase
8 – 10 Critical Xs
X
Improve Phase
4 – 8 Critical Xs
Y = f(X)
Control Phase
3 – 6 Critical Xs
KPIV = Key Process Input Variable
Optimized Process
Y
Sustain!
DMAIC Process
Define
Business
Need
Measure
Y
Analyze
X
Improve
Y = f(X)
Control
Sustain!
The DMAIC Process Improvement Model
Who are the customers
And what are their priorities?
How do we remove the causes
of the defect?
How is the process performing
and how is it measured?
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 the business case for working the 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 trying to “fix” the problem, confirm that you can
measure the 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 after completing Define and Measure do you begin
the detailed investigation into Critical Xs
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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 are based on findings from the Analyze phase
5. Control Phase
•
•
•
•
Develop Control Plan
Implement full-scale improvement
Implement controls
Train personnel and hand-off control plan to Management
Final solution is robust and becomes ingrained in the operation.
The DMAIC Process with Tools
DAY 1
Define
Measure
Analyze
Improve
Control
Tools:
•Voice of Customer (VOC) Analysis
•Process Mapping
•Value Stream Mapping
The DMAIC Process with Tools
DAY 2
Define
Measure
Analyze
Improve
Control
Tools:
•FMEA
•Quick Wins 5S
•The 8 Wastes
The DMAIC Process with Tools
DAY 3
Define
Measure
Analyze
Improve
Control
Tools:
•Controls Plans
•Lean Visual Controls
•Mistake Proofing (Poke Yoke)
Integrating Lean And Six Sigma
 No matter the nature of a project,
value and objectives must be
understood
 No matter the nature of a project, the
process must be measurable
 Depending on the nature of a project,
Lean tools, Six Sigma tools, or a
combination may be best to solve the
problem
 No matter the nature of a project, the
final solution must be controlled.
Define
Measure
Analyze
Improve
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