Lean Six Sigma - Lesson 1-4 PDF

LEAN SIX SIGMA Here starts the lesson!  LEAN MANAGEMENT Lean management is an approach to managing an organization that supports the concept of continuous improvement, a long-term approach to work that systematically seeks to achieve small, incremental changes in process...

LEAN SIX SIGMA Here starts the lesson!  LEAN MANAGEMENT Lean management is an approach to managing an organization that supports the concept of continuous improvement, a long-term approach to work that systematically seeks to achieve small, incremental changes in processes in order to improve efficiency and quality.... Eliminating all waste in the business processes.  SIX SIGMA a set of management techniques intended to improve business processes by greatly reducing the probability that an error or defect will occur.  Lean vs Six Sigma Lean manufacturing Six Sigma is a set of is a systematic way of techniques that strive eliminating waste and to greatly reduce the creating flow in the rate of defects. production process. What Is Lean Six Sigma? Lean Six Sigma is a team-focused managerial approach that seeks to improve performance by eliminating waste and defects. It combines Six Sigma methods and tools and the lean manufacturing/lean enterprise philosophy, striving to eliminate waste of physical resources, time, effort and talent while assuring quality in production and organizational processes. Simply put, under the tenets of Lean Six Sigma any use of resources that doesn't create value for the end customer is considered a waste and should be eliminated.  Understanding Lean Six Sigma Lean Six Sigma can see its origins in the United States in the 1980s as a combination of management principles and processes that originated in Japan. In an effort to compete with Japan's better products, U.S. managers adopted some Japanese manufacturing principles that focused on reducing waste in the form of non-value-adding actions. In the 1990s, such principles were adopted by large U.S. manufacturers. Lean Six Sigma was introduced by Michael George and Robert Lawrence Jr. in their 2002 book Lean Six Sigma: Combining Six Sigma with Lean Speed as a combination and refinement of lean enterprise and Six Sigma tenets. Lean Six Sigma Tenets The "lean" concept of management lends its focus on the reduction and elimination of eight kinds of waste known as "DOWNTIME," which is an abbreviation of defects, overproduction, waiting, non-utilized talent, transportation, inventory, motion, and extra-processing. "Lean" refers to any method, measure or tool that helps in the identification and elimination of waste. The term Six Sigma refers to tools and techniques that are used to improve manufacturing processes. It was introduced by an engineer at Motorola in 1986 and inspired by Japan's Kaizen model. It was trademarked by the company in 1993. Its intent is to improve processes by identifying and eliminating the causes of defects and variations in business and manufacturing processes. Six Sigma's DMAIC phases are utilized in Lean Six Sigma. The acronym stands for define, measure, analyze, improve and control and refers to a data-driven method for improving, optimizing and stabilizing business and manufacturing processes. The combination of lean management concepts and Six Sigma's tools and techniques makes clear what processes are prone to variation and then reduces those variations as a way to ensure continued improvement.  Yellow Belt: Awareness of Lean Six Sigma Lean Six Sigma Levels Green Belt: A focus on the use of tools and the application of DMAIC and Lean Six Sigma training uses lean principles "Belt" levels to denote Black Belt: Full-time project expertise similar to Six Sigma. leader Master Black Belt: A Black Belt with a minimum of two years of experience. Able to teach Lean Six Sigma.  LEAN METHODOLOGY  LEAN MANAGEMENT Lean management is an approach to managing an organization that supports the concept of continuous improvement, a long-term approach to work that systematically seeks to achieve small, incremental changes in processes in order to improve efficiency and quality.... Eliminating all waste in the business processes.  SIX SIGMA a set of management techniques intended to improve business processes by greatly reducing the probability that an error or defect will occur.  What is Lean? Lean is a systematic approach to reduce or eliminate activities that don't add value to the process. It emphasizes removing wasteful steps in a process and taking the only value-added steps. The Lean method ensures high quality and customer satisfaction. It helps in reducing process cycle time, improving product or service delivery time, reducing or eliminating the chance of defect generation, reducing the inventory levels and optimizing resources for key improvements among others. It is a never-ending approach to waste removal, thus promotes a continuous chain of improvements.  What is “Value”? Let’s understand what is "Value” in the above definition of Lean: Depending on the type of business process & industry context, the customer defines “value”. “Value” is related to the customer’s perception of the product(s) or service(s), which he or she is willing to pay for. A process is a set of activities, which converts inputs into outputs using resources. In a process, these activities can be classified into three types. They are: ⮚ Non-Value-added Activity: These activities do not add any value to the processor products. They form the wasteful steps. A customer doesn’t pay for the costs associated with these activities willingly. Rather, if present excessively they result in customer dissatisfaction. ⮚ Value-added Activity: These activities add value to the process and are essential. They improve processes for productivity and quality. ⮚ Enabling value-added Activity: These activities do not add value to a customer. They are necessary for the continuity of a process. In any process, almost 80 – 85% of activities are non-value adding activities. The aim of the LEAN approach is to identify them in the process. And use specific lean tools to eliminate or reduce them. Thus, Lean improves process efficiency.  The Five Principles of Lean These Lean principles can be applied to any process to reduce wastes. They are:  Define Value The customer defines the value of a product or service. Hence, the first step is to identify customers. Ask yourself, what does the customer value? Figure out customer’s expectations from your products or services. Classify the process activities into Non-Value added, Value-added, and Enabling value- added.  Map the Value Stream The value stream mapping shows the workflow process steps for a product or service. The value stream mapping helps to identify & eliminate NVA activities. This eventually helps you to reduce the process delays and thereby improves the quality of product/service.  Create Flow Create a flow to the customer by ensuring a continuous flow system in producing products or services. The flow will optimize the process to maximize process efficiency.  Establish Pull establish a pull approach by meeting system beat time. The beat time is the rate at which a product must be ready to meet customer demand. JIT (Just in time) is a tool promoting the Pull system. This ensures the smooth workflow of the process without any disruptions. It also helps to diminish inventory levels.  Seek Continuous Improvement Finally, you must put consistent efforts to improve the existing business processes to cater to ever- changing customer needs. This ensures the elimination of waste and defects of free products & quality service to customers.  Introduction to Some Important Lean Tools VSM (Value Stream Mapping): As already discussed, VSM helps to identify process wastes and causes of these wastes. Kaizen: It’s a continuous improvement approach focusing on small – small improvements. It involves the commitment of down level people in the organization towards process improvements, facilitated by subordinates and supported by management. Just in Time: It’s a pull approach to meet customer demands as & when it flows from a customer.  SMED (Single minute exchange of dies): It improves equipment changeover time. It works on the principle of reducing changeover time to within ten minutes. Poka Yoke: It’s a mistake-proofing device used in assembly to alert operators on defects or failures. Jidoka (Automation): Also known as intelligent automation. It stops the assembly or production line if a defect occurs.  Heijunka: It’s the concept of Line Balancing. The aim is to evenly distribute the load by balancing production lines. Gemba (Go & See): The aim is to go to the actual place of work. Observe the process and executions in real-time with care. Record the observations. It’s another way to find process pitfalls. Kanban: It’s a signal system to manage inventory levels. Kanban boards can be displayed and managed to see the current inventory level on a real-time basis. It also alerts the management to bring attention to excessive inventory. Excessive inventory ties up the working capital and blocks it from productive usage.  Note: For a kanban system to work, we NEED CONSISTENT demand across the work centers How do we ensure this? 73  Mixed Model Sequencing Product Monthly Demand Daily Requirement A 800 40 B 800 40 C 200 10 Largest integer that divides evenly into daily requirement is 10: A: 40 / 10 = 4 B: 40 / 10 = 4 C: 10 / 10 = 1 Mixed model sequence: A-B-A-B-A-B-A-B-C 74 5S In any factory, office or retail environment, 5S can play such a big part towards improving your company. It is an absolute necessity in any lean manufacturing facility. You should gain improvements in quality, productivity, safety, efficiency and morale once you implement. It has been referred to by different names in North America, however it holds the same basic concept; a place for everything and everything in it's place. It is a system designed to make your job easier, through organization, when done correctly.  English Tagalog Japanese Term Translation Translation S-1 seiri sort suriin S-2 seiton set in order sinupin S-3 seiso shine simutin siguruhin ang S-4 seiketsu standardize kalinisan S-5 shitsuke sustain sariling disiplina  HOW TO SORT Identify the holding area Use the red tag technique Break the “ JUST IN CASE “ mentality Use the 30 day rule IMMEDIATELY DISPOSE USELESS ITEMS! GENERAL STRATEGIES If it is often used, keep close at hand “30 seconds” rule The fewer the better Focus on improving flow Use “recoil” getting items back to where they belong Do not make drawers and shelves to store empty space Avoid storing items in piles Tips In Implementing Shine LOOK for signs of wear,damage,leak,dirt and grime LISTEN for unusual or inconsistent equipment sounds FEEL areas that might be subject to excessive wear,abrasion and sharp edges. Pay attention to what you SMELL- ink,glue, gas in kitchens While you should never take a TASTE of anything you are unsure of in the workplace, some chemicals may leave a taste in your mouth if thay are accidentally ingested in very small amounts.  SAFETY AND SECURITY  The basic idea of both is protecting assets from hazards/threats creating safe/secure conditions. The condition safety is about being protected, while the condition security is about being free from danger. The differences between being protected and being free from danger or threat are not easily seen.  SAFE AND SECURE THE SAME?  In many languages, there is only one word for safety and security.... According to Merriam-Webster, the primary definition of safety is "the condition of being free from harm or risk," which is essentially the same as the primary definition of security, which is "the quality or state of being free from danger."  Score>3 P D 5S Audit A C Score Setting CAPA Do Seiketsu Auditors Training Do Seiso Audit Forms/ Checklist Do Seiri Do Shitsuke 5S Launching Do Seiton Form 5S Org. Score