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Introduction to Lean Six Sigma

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Jaime Devine

on 26 January 2015

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Transcript of Introduction to Lean Six Sigma

Introduction to Lean Six Sigma
Why Process
Improvement?

Introduction to Lean Principles
Lean Six Sigma
Better. Faster. Cheaper.
Focus on optimizing process performance to meet customer needs and quality demands.

Conclusion
Lean is a systematic approach to efficiently identifying and eliminating waste and non-value added activities from all process related services.
The History of Lean

Efficiency vs. Effectiveness
Henry Ford - 1910
Hallmark contribution was the design of his factory and its continuous flow assembly line. Standardizing work methods as well as product created unprecedented production efficiencies.

"They can have any color they want as long as it's black." - Henry Ford

He was able to avoid huge challenges and downtime by never changing from one mode of operation to another but what about the customer's choice?


Early days of mass production
Toyota Production System
Forward thinking assembly manager at Toyota. Developed practices that became the Toyota Production System (TPS) in order to balance the necessity of assembly line efficiency with the demands of the marketplace.
People wanted variety in colors and features.
Rapid changeover
Kanban

Make what the customer is buying.
Taiichi Ohno - 1940s-1950s
Lean Manufacturing
Brought all the principles and practices of TPS together into a deployable system. Along with co-author David Jones wrote:
"The Machine that Changed the World" (1990)
"Lean Thinking" (1996)

Helped companies adopt Lean practices into the entire enterprise rather than just manufacturing functions. This opened the door for the business world to see the value of Lean for all kinds of organizations, not just manufacturing.
James Womack
The Principles of Lean
Lean Lingo
Cost of Poor Quality
Visible Costs of Poor Quality
Hidden Costs of Poor Quality
WASTE
RETURNS
RECALLS
TESTING COSTS
INSPECTION COSTS
REWORK
WASTE
INSPECTION COSTS
REWORK
RECALLS
RETURNS
TESTING COSTS
EXCESSIVE OVERTIME
LATE PAPERWORK
PRICING OR
BILLING ERRORS
HIGH COSTS
EXCESS INVENTORY
PREMIUM FREIGHT COSTS
INCORRECTLY FULFILLED ORDERS
LACK OF FOLLOW UP ON
CURRENT INITIATIVES
EXCESSIVE FIELD
SERVICE EXPENSES
PAST DUE RECEIVABLES
PLANNING DELAYS
UNUSED CAPACITY
COMPLAINT HANDLING
EXCESSIVE
SYSTEM COSTS
Lean Tools and Techniques
PDCA / ADTP
Process mapping
Rapid Changeover
Waste walks
5S
Mistake proofing / Poke-yoke
Standardized work
Identifies problem areas and bottlenecks
Creates capacity by making sure that staff spends time on only value-added activities
Reduces overhead by cutting back on unnecessary paperwork
Simplifies and standardizes processes
Training requirements are minimal
Can be applied across entire organization
Improvements impact all areas of an organization including the bottom line
Why go Lean?
Fundamental Principles
Continuous Improvement
Respect for people
PDCA Cycle
Plan
Do
Check
Act
Six Sigma
Fundamental Principles
DMAIC
Mutual Respect
Management
acknowledges
they need the help of employees
because they aren't close
enough to the problem. They show a
true respect for the knowledge of
the employee and their dedication
to doing the best job they can.
Employees
recognize they can't solve
the problem alone because they are
too close to the problem and might not take a critical enough look at
their own work.
PDCA/ADTP CYCLE
ASSESS
DIAGNOSE
TREAT
PREVENT
\
Assess - all available information is used to evaluate how the current process is running
Diagnose - conclusion is drawn about the nature or cause of the process requiring attention
Treat - Lean tools are applied to attain a state of process "wellness" that meets needs of the customer
Prevent - improvements are sustained and controlled over time
Thanksgiving Process
A customer-focused, statistically based improvement methodology for reducing defects based on process improvements.
Y = f(x)
Y -> observed effect (desired or not)
x -> root cause
Good vs. Great
The Difference
Quality
No more than 3.4 defects per million opportunities
Step by step guide to solving a performance problem or improving a process
Define - problem and objectives are clearly defined
Measure - identify performance requirements, collect data, validate problem exists
Analyze - data is analyzed to identify root causes of variations
Improve - develop and implement solutions to remove causes of variations
Control - establish standards to sustain improvements

Quality
Customers
: Every organization exists to provide value to their customers. Customers define quality.

Processes
: Outside-In perspective allows an organization to see and feel what the customer does.

Employees
: People create results. Every employee must be involved, motivated, and knowledgeable.


Efficiency =
Time / Effort
Quality / Accuracy
Effectiveness =
Decreases
Stays the same
Stays the same
Increases
non-value added
: activities or actions that add no real value to the product or service and are therefore a form of waste
value stream
: the actions, both value added and non-value added that are necessary to deliver a product or service to a customer
flow
: the progressive achievement of tasks and/or information as they proceed down the value stream; the goal is non-stop flow
Kaizen
- Japanese for "take apart and make better"; Kaizen events are structured 2-4 day events in which a specific issue in the value stream is addressed and improved
The 8 Wastes (Muda)
D
efects / Rework
O
verproduction
W
aiting
N
ot clear (confusion)
T
ransportation
I
nventory
M
otion
E
mployees talents not utilized
Defects / Rework
data entry errors
inaccurate reports
credits and rebills
Overproduction / Overprocessing
preparing reports that are not used
ordering products just in case you need them
too many approvals required for action
Waiting
system downtime
approval from others
meetings starting late
waiting for doctor's orders
Confusion
meetings without agendas for action
no clear process outlined
poor filing system
unclear care plans
Transportation
shuttling residents to doctor's appts.
filing papers that will never be used again
multiple hand-offs
excessive email attachments
delivering meals and medicines to residents
Inventory
excess office supplies
files and documents awaiting processing
overstocked medicines and disposables
Motion
copy machine too far away from users
looking for misplaced items/ equipment
digging through stacks of paper
supplies kept far from point of use
movement of residents from point A to B
Employees Talents
restricting or not offering training
people put on the wrong jobs where they cannot utilize their strengths
limiting employee responsibility and authority on tasks
Sort - Do you use it?

Set in order - Location

Shine - Clean & replace

Standardize - Map and rules

Sustain - Visual controls
History of Six Sigma
Key Concepts
Early 1900s - Statistical analysis and focus on quality begin

1980s - Motorola formalizes the use of statistics to drive quality improvement

1990s - GE masters and popularizes
Six Sigma
Measure, Measure, Measure
You cannot improve what you do not measure, Valid data is a required element of Six Sigma.
Critical to quality
- attributes most important to the customer
Defect
- failing to deliver what the customer wants
Process capability
- What your process can deliver
Variation
- what the customer sees and feels
Stable operations
- ensuring consistent, predictable processes to improve what the customer sees and feels
DFSS
- Design for Six Sigma - designing to meet customer needs and process capability
Root Cause Analysis
"the evil at the bottom" that sets off the whole cause and effect chain
5 Whys - Ask "why?" until the root of the problem reveals itself

Fishbone diagrams - cause and effect diagram
When to use Lean vs. Six Sigma
Lean
Six Sigma
Process is broken and can't be fixed
Complex problem that can't be solved with reason and experience
Process generates measurable output
Data is obtainable on process output
The problem is process
flow, inventory or time
Causes are evident
There is no standard
process
Employees can be
empowered

Project Roles
Black Belt - trains and coaches project teams; leads problem-solving projects
Green Belt
- leads Green belt projects and teams; assists with data collection and analysis on Black Belt projects
Master Black Belt
- acts as internal consultant; develops strategic initiatives, trains Green and Black Belts
Yellow Belt
- participates in team projects
White Belt - understands basic Six Sigma concepts from an awareness perspective
Champion - Create organizational plan and identify projects using company's vision, mission, and goals; identify resources and remove roadblocks
Full transcript