Six Sigma and Lean Management PDF

Six Sigma and Lean Management Unit - I Six Sigma is a set of methodologies and tools used to improve business processes by reducing defects and errors, minimizing variation, and increasing quality and efficiency. The goal of Six Sigma is to achieve a l...

Six Sigma and Lean Management Unit - I Six Sigma is a set of methodologies and tools used to improve business processes by reducing defects and errors, minimizing variation, and increasing quality and efficiency. The goal of Six Sigma is to achieve a level of quality that is nearly perfect, with only 3.4 defects per million opportunities. The DMAIC model is a roadmap for Six Sigma, used to improve the quality of results that company processes produce. The letters DMAIC are short for: Define, Measure, Analyse, Improve and Control. These five parts are filled in by following twelve steps, which guide you through the process. DMADV is a framework that stands for Define, Measure, Analyze, Design, and Verify, and is used to design and implement new products or processes that meet customer needs. It's a Six Sigma methodology that focuses on the customer service aspects of a business. DMADV is different from other improvement methodologies, like DMAIC (Define, Measure, Analyze, Improve, and Control), because it's focused on developing new solutions instead of improving existing ones. Here's what each phase of DMADV involves: Define: Project leaders identify the customer's most important needs and wants. They may use information from industry research, historical data, sales departments, or company research to help define customer needs. Measure: Use defined metrics to collect data and record specifications, including any critical quality characteristics, risks, and production capabilities. Analyze: Analyze the data to choose the best design possible. Design: Design and test the product, service, or process. Verify: Make sure the design meets the requirements and performs well under simulated or actual conditions. DMADV can be used to improve product designs and identify and correct problems before a product goes to market. For example, a retailer could use DMADV to develop an inventory management system that reduces waste and optimizes different levels. Critical to Quality (CTQ) is a concept in Six Sigma that helps identify and evaluate the characteristics of a product or service that are most important to customers. CTQs are used to determine what needs to be done to meet or exceed customer expectations. CTQs can include anything from the dimensions of a physical product to the promptness of delivering a service. CTQs are a key part of the Define stage of a Six Sigma project. During this stage, project teams work to identify the impact of a problem on the customer and determine the CTQ customer requirements. A Six Sigma tool called a Critical to Quality Tree (CTQ Tree) can help organizations identify customer needs and translate that information into measurable product and process requirements. This helps organizations understand the characteristics of a product or service that most drive quality for customers. CTQs are a crucial and measurable characteristic of a product or process that are directly linked to customer satisfaction. They act as a bridge between customer requirements and the essential problem targeted for improvement within a project. Value stream mapping (VSM) is a Lean Six Sigma (LSS) technique that uses a flowchart to visualize the steps required to deliver a product or service to a customer. The goal is to analyze Compiled by, Dr. Bini, Assistant Professor, Faculty of Management, SRMIST, Ramapuram  Six Sigma and Lean Management and optimize the process to maximize value, minimize waste, and improve communication and collaboration. VSM involves three steps: 1. Create a current state map: Show the process in its current form, from order to delivery. 2. Analyze the current state map: Identify areas for improvement. 3. Create a future state map: Show the areas for improvement, ideally 6–12 months into the future. VSM uses standardized symbols to represent information flows and work streams. Items are mapped as adding or not adding value from the customer's perspective. This helps teams quickly identify and eliminate waste, spot inefficiencies, and determine opportunities for process improvement. VSM can also help identify key industry and business processes, which can help manage a sector or even an entire company. In Lean Six Sigma, VA stands for value-added, and NVA stands for non-value-added. VA activities directly increase the value of a product or service for customers, while NVA activities do not. VA activities include: Changing the form, fit, or function of a product or service Converting input to output Not being waste NVA activities include: Being unnecessary Providing no value to customers Taking time, resources, or space but not increasing the product's value Some examples of NVA activities include administrative tasks, compliance with regulations, inspections, management approvals, and quality assurance activities. VA/NVA analysis is a technique that uses Lean techniques to break down a process into individual operations to identify waste and redesign the process for optimization. Six Sigma Process Mapping is a technique that uses a flowchart to visualize the steps of a process or activity in a project. The goal is to create a shared understanding of how the process works and how it can be improved. Process mapping can help identify inefficiencies and waste, and streamline the project for maximum efficiency. Here are some steps for creating a Six Sigma process map: 1. Set boundaries: Define the beginning and end of the process. 2. Agree on detail: Decide how much detail the chart should include. 3. Identify steps: List all the major inputs, outputs, and decisions from the beginning to the end of the process. Compiled by, Dr. Bini, Assistant Professor, Faculty of Management, SRMIST, Ramapuram  Six Sigma and Lean Management 4. Arrange steps: Diagram the process as it currently exists, starting with the steps in sequence. 5. Use symbols: Each symbol has a specific meaning. For example, a terminator indicates the beginning and end of the process, a rectangle indicates a task, an oval indicates inputs and outputs, a "D" indicates a delay, an arrow indicates movement, and a diamond indicates a decision point. 6. Involve stakeholders: Get input and feedback from people at different levels of the organization, such as frontline employees, managers, and subject matter experts. This can help ensure that the process map reflects real-world insights and experiences, and it can also help build buy-in when it comes time to implement changes. Some benefits of process mapping include: Identifying problems Visualization can help identify bottlenecks and problems in the process. Making faster decisions Teams and business leaders can quickly see problems and decide how to address them. Simplifying processes Process mapping can help identify steps that add complexity and need to be simplified. Comparing processes Process mapping can help visually compare the current process to a potential new process. Involving others Involving everyone in the process can help them understand how their role fits in, and it can also help build buy-in when changes are implemented. The acronym SIPOC stands for Suppliers, Inputs, Process, Outputs and Customer. Using information from these five areas creates a process map that gives a high-level overview of a Six Sigma project. A SIPOC diagram is a form of Process Mapping. Process mapping is a term used to describe the task of putting a project’s goals and, in some cases, detailed steps on how those goals will be accomplished. It’s a simple but effective method for ensuring every project team member – as well as executive leadership – are on the same page. It also offers an overview of a project at a glance. In the case of SIPOC, the resulting diagram provides a high-level process map, the sort used by leadership to quickly explain a project and provide common reference points for all team members. It also can help identify problems and isolate areas that are not needed or add little value. Supplier – The provider of inputs into a process Input – Materials, information and other resources needed to complete a process Process – Structured steps used to convert inputs into outputs Outputs – Products or services resulting from the process Compiled by, Dr. Bini, Assistant Professor, Faculty of Management, SRMIST, Ramapuram  Six Sigma and Lean Management Customer – Recipient of the outputs Here’s an example of how a SIPOC diagram works. We’ll use a classic of early entrepreneurship, the lemonade stand. Supplier: Grocery store, home store, customer requests Inputs: Lemon juice, water, sugar, ice, cups, stirring spoon, large pitcher, wood from home store, money jar, a busy pedestrian area, people to operate stand Process: Construct lemonade stand, combine ingredients to make lemonade in pitcher, take customer orders, pour lemonade from pitcher to cup Outputs: Chilled glass of lemonade, money placed in jar Customer: Thirsty pedestrians Compiled by, Dr. Bini, Assistant Professor, Faculty of Management, SRMIST, Ramapuram