Lean Six Sigma Overview PDF

Lean Six Sigma Overview Lean/ or lean thinking: is a method streamlines processes, eliminating waste to create value for stakeholders, enhance efficiency, increase revenue, cut costs, and boost customer satisfaction. Benefits include shorter cycle times, fewer suppliers, less bureaucracy, and incre...

Lean Six Sigma Overview Lean/ or lean thinking: is a method streamlines processes, eliminating waste to create value for stakeholders, enhance efficiency, increase revenue, cut costs, and boost customer satisfaction. Benefits include shorter cycle times, fewer suppliers, less bureaucracy, and increased productivity. Waste (referred to as "Muda" in Japanese): any activity that consumes time, resources, and space but does not add value to the product or service from the customer's perspective. Types of MUDA: o Muda-1: Actions that don’t add value, but for some other reason are still necessary and cannot be eliminated immediately. o Muda-2: Activities that don’t add value are unnecessary and are the first targets for elimination. Examples of Muda Mistakes that require recertification Production of items no one wants unneeded processing steps. Movement/transport from one place to another without any purpose Downstream activity waiting because the upstream activity is late. Goods and services don't meet the customer's needs Six Sigma Six Sigma reduces defects by minimizing variation. Lean Six Sigma improves processes faster. It focuses on eliminating waste and reducing overall process variation, developed during the Quality Revolution. Benefits of Implementation lean Six Sigma Increased throughput and capacity Better quality from the start Less management time in “the mud” o Allows time for high level activities and identifying value-adding solutions Increased citizen service and satisfaction! Decreased costs Reduced turnaround time Improved employee morale Decreased overtime Better inventory management Improved communication Better utilization of people’s talents Quality: identifying the right things and assuring that they are done right. Lean Thinking Philosophy Lean Thinking Philosophy: Identify and eliminate all activities that are waste (Muda) and focus on optimal flow throughout the process through the following steps: 1. Identify the Current State which is full of Waste, Variation, and Constraints 2. Expose Problems 3. Solve Problems 4. Future State o Customer-focused approach. o "True North" concept: Value Added Time = Lead Time. Different Categories of Waste in Processes (DOWNTIME+A). 1. Defects Errors, poor quality, failure to meet customer requirements 2. Overproduction Providing unnecessary products, services, or features by producing sooner, faster, or in greater quantities than customer demand. 3. Waiting Delays, periods of inactivity as people wait for a work cycle to be completed. 4. Not utilizing people's talent: failure to utilize full people's time and talents. 5. Transporting Unnecessary movement of people or parts between processes. 6. Inventory Excess inventory/supplies, batch processing, queues, or backlogs of work. 7. Motion: Extra steps taken by employees because of inefficient layout, searching, hunting, and gathering. 8. Excess Processing Excess activity and processing steps caused by poor process design, repetition, or correction of a process. 9. Attitude: people's behavior toward wasting resources and time. What is Lean Thinking and its objective or Purpose/ or what is the 5 Principles of Lean /or how to Become Lean/ or Explain how Lean Provides reinforcing concepts, Practices, and Tools Continuous Improvement (Kaizen) involves ongoing systemic and incremental improvement in work standardization, maintenance, root cause analysis, and worker empowerment. Customer needs and expectations shape value in a just-in-time "pull" production approach. Eliminate all types of waste to improve process efficiency. Value stream identified by tracking product flow; focus on growing value for stakeholders. Knowledge-driven: Draws upon knowledge and innovation from everyone - workers, suppliers Striving for perfect quality: Completely defect-free parts must flow to each subsequent process; quality designed-in, not based on inspection, mistake proofing Flexibility and responsiveness: Small processing sizes and quick set-up times; ability to respond to shifts in demand  Trust-based relationships: Mutual commitments and obligations, internally and externally with suppliers 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 It is only a small percentage of total time 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 Batch Processing/ queue processing: Involves multiple departments, each with its own “IN” and “OUT” stages. The workflow involves moving items between these departments in batches. Continuous Flow: Shows a more streamlined process where items move continuously leading directly to a “DONE” state. The key takeaway is that batch processing affects the total Work-in-Process (WIP), while continuous flow aims for a more efficient, uninterrupted workflow.  Evolution of Quality: o Craft Production ▪ Each item is unique ▪ Individual parts made to fit ▪ Quality through craftsmanship o Mass Production ▪ High volume ▪ Interchangeable parts ▪ Quality through inspection o Better Production ▪ Understanding of process variation ▪ Quality through process Explain the stages of the Evolution of Quality from 1700 till Six Sigma? 1. Interchangeable Parts was in 1798 by Eli Whitney 2. Statistical Process Control was in the 1920s by Walter Shewhart 3. Reconstruction of Japan was in 1950 by Deming & Juran 4. Toyoda Production System was in 1960 by Eiji Toyoda 5. Six Sigma was in 1980 by Motorola DPMO: Defects Per Million Opportunities. What does “Six Sigma” mean? A process with a six sigma level experiences only three defects per million opportunities. Is it Important to have a six sigma level of quality? Varies based on customer perception of quality.  Increasing Sigma level leads to improved quality and fewer errors, especially at 6 Sigma level. What are the three major Key Concepts of Lean Six Sigma Methodology and Explain them? 1. Understanding of Variation ▪ Two types of variation ▪ Controlled variation (Common Causes) ▪ Uncontrolled variation (Assignable/Special Causes) ▪ Improvement strategy based on type of variation ▪ Controlled variation = Change the process ▪ Uncontrolled variation = Deal with the special events 2. Voice of the Customer (VOC) ▪ How does the customer describe quality ▪ What is the customers tolerance for defects ▪ VOC is often expressed as specification limits ▪ Goals should align with the voice of the customer 3. Voice of the Process (VOP) ▪ What is the current process capability ▪ How much variation is in the process ▪ How many defects does it produce ▪ What is the process average ▪ What process inputs are important to final quality What’s the Conceptual Summary of Lean Six Sigma? Y=ƒ(x) The Output (Y) is a function (ƒ) of the inputs (x) Explain the DMAIC Process of Six Sigma with one tool used in each phase? Explain 2 activities for each phase? Explain the meaning of each phase? 1. Define begin with the end in mind, organize the project scope, and develop the project charter. Define Activities Identify Problem Complete Charter Develop SIPOC Map Finalize Project Focus Define Tools Charter Form Multi-Generational Plan Stakeholder Analysis Communication Plan SIPOC Map Voice of Customer (VOC) Defect definition Goal definition Simply the define stage answers the following: What is the problem? What is the goal? 2. Measure determines the "Current State" process using the experts' opinions Measure Activities Develop Operational Definitions Develop Data Collection Plan Collect Baseline Data Determine Process Performance/Capability  Validate Business Opportunity Review EBPM&C process maps to create ‘As-Is’ Process Map Measure Tools Operational Definitions Data Collection Plan Graphical Analysis Pareto Chart Histogram Box Plot Run Chart Detailed ‘As-Is’ Process Maps Simply the measure stage answers the following What is the current performance? What is the defect rate? 3. Analyze put the process under the microscope and beat it up! Collect data to confirm/deny opinions Analyze Activities Propose Critical X’s Prioritize Critical X’s Conduct Root Cause Analysis of Critical X’s Validate Critical X’s Prioritize Root Causes Analyze Tools Pareto Charts Fishbone Diagrams Brainstorming 5 Why’s Non-Value-Added Analysis  Simply the analysis stage answers the following What are the sources of process variation? What are the root causes of defects? 4. Improve Manipulate process to improve and create desired "Future State" Improve Activities Develop Potential Solutions Develop Evaluation Criteria & Select Best Solutions Work with EBPM&C to create Develop ‘To-Be’ Process Map(s) Develop High-Level Implementation Plan Develop Pilot Plan & Pilot Solution Improve Tools Brainstorming Solution Selection Matrix ‘To-Be’ Process Maps Piloting and Simulation Simply the improve stage answers the following How do we change the process? How do we verify our changes will improve the process? 5. Control develops procedures and controls and sustains the gains Control Activities Develop SOPs, Training Plans & Process Control Systems Implement Process Changes and Controls Monitor & Stabilize Process Transition Project to Process Owner Control Tools Control Charts Standard Operating Procedures (SOP’s) Communication Plan  Implementation Plan Training Plan Process Control Plans Simply the control stage answers the following Are the improvements to the process consistent over time? Are we maintaining future improvement? Six Sigma – three dimensions: 1. Organization 2. Methodology 3. Tools. What are Lean Six Sigma Certification Options? Yellow Belts(lowest) Green Belts Black Belts Master Black Belts Champions (the highest) What is the Difference between Goal Post Philosophy and Taguchi Philosophy of Quality? Traditional "Goalpost" Philosophy Taguchi Philosophy Anything outside the specification limits Any deviation from the target causes losses represents quality losses to society List at all Tools used in Lean Six Sigma? / List the Problem-Solving tools of LSS 1. Value Stream Mapping 2. Root cause analysis 3. Fishbone Analysis 4. Pareto chart 5. The 5 Whys 6. Kanban 7. Kaizen 8. 5S Non-value added Business Value Added tasks (BVA), like recording data, do not directly contribute to the final product/service. Quality functions are needed due to low quality levels, but customers may not pay if quality is guaranteed by other suppliers. BVA tasks can be reduced through process improvement and redesign.