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Process Improvement Using Lean Six Sigma Methodology

A presentation to explain the basic concepts in lean and six sigma
by

Pat Thomas

on 23 June 2014

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Transcript of Process Improvement Using Lean Six Sigma Methodology

Lean Six Sigma 101
Philosophy
History
Concepts
Approach
People
Mistake Proofing
so...What is it that you do?
Define
Measure
Analyze
Improve
Control

Lean is eliminating waste.
Six Sigma is eliminating variation.
These techniques can be used together
to improve inefficiencies and lower the cost to do business.
This adds value to the customer.
Customers,
Who are they?
BELTS:
- Yellow
- Green
- Black
- Master Black
What is value?
Value is what the customer is willing to pay for.
It can be in the form of providing a product or service.
Lean is an approach that requires working together
to continuously improve processes. It requires a commitment
from everyone.
Mistake Proofing (Poka Yoke)....
'Quality is everyone's responsibility'
- W Edwards Deming
"It is not the EMPLOYER who pays the wages.
He only handles the money.
It is the PRODUCT that pays the wages."
~Henry Ford
Six Sigma follows the DMAIC approach....
Lean follows the PDCA model...
Tools
Before After
Seek to Identify the 8 Deadly Forms of Waste
WAITING
"Time waste differs from material waste in that there can be no salvage. The easiest of all wastes and the hardest to correct is the waste of time, because wasted time does not litter the floor like wasted material."
- Henry Ford
Transportation
Motion
Over production
Extra Processing
INVENTORY
defects, Inspection
and rework
Underutilized talents
Kaizen Event
Kai - to work together
Zen - to improve
We have a new facility...how should we lay it out?
Thank YOU!!
Your Lean Six Sigma Team:
Pat Thomas
Steve Hammers
Rochelle Schwindt
Extra Processing
Extra Processing
Defects cause rework. Rework can double, if not triple the cost
of performing a task that should have been done right the first time.
Not all defects are caught with inspection, some the customer finds.
Those can damage our reputation, which can lead to damaging our profits.
The most obvious is the external customer:
The person buying the goods or service
for DynCorp, Department of State is our customer.
However, we are all each other's internal customer:
The pilot is a customer of the mechanic
The mechanic is a customer of production control
Production control is the customer of the Buyer...
Lean Six Sigma uses many Tools to document your process including:
SIPOC Diagram - supplier, inputs, process, outputs, customer
Value Stream Map - this is where you look for the waste
Process Map - shows the different departments involved and steps
Spaghetti Diagrams - used to show all of the movement in a layout
Tools to quantify risk:
FMEA: Failure Modes Effect Analysis
Simulations
Rolled Throughput Yield
Gage R& R (Repeatability & Reproducility)
The 5 Why Method
Why?
Why?
Why?
Why?
Why?

Cause and Effect Diagrams
(Fishbone Diagrams)

Questions?
In Summary...
Lean is a way of:
Thinking
Working
Learning
It is a continuous journey
Office Waste
6S
DMAIC Process and Tools
Define:
Develop a Concise Definition of the Problem
Project Contract
- Problem Statement
- Measurable Objective
Team Charter
High Level Process Map
In/Out of Scope
SIPOC
VOC
Stakeholder Analysis
Change Management Tools
- GRPI
- 15 word Document
- Elevator Speech
Measure:
Show me the Data
Detail Process Map (current state)
Cause and Effect
FOV (Families of Variation)
Data Collection Plan
MSA
Stability (SPC)
Capability
Pareto
FMEA
7 Wastes
5S
Review Contract Metrics and Program Alignment
Analyze:
Understanding Causes, Developing Solutions
Graphical Analysis
Hypothesis Testing
Root Cause Analysis
Improve:
Train, Communicate and Implement Solution
Experimentation
Detail Process Map (future state)
FMEA
RACI
Implementation Plan
5S
Mistake Proofing
Cost Benefit Analysis
Communication Plan
Draft Documentation and Procedures
Training
Pilot Testing
Implement Improvements
Control:
Measure and Sustain Results
Control Plan
RACI (update)
Training
Final Documentation
Process Ownership Transfer
Validate Process
- Capability
- Stability
Close the Project
Celebrate!!
Not all tools are required for every project . See project checklist for requirements.
The Define Phase
The most important step in the successful implementation of any Six Sigma initiative is the identification of the true problem
The purpose:
Identify an improvement opportunity that is linked to the business performance metrics
Identify the gaps between current performance and customer expectations
Define the problem, the improvement objectives and the scope of the project
Identify the financial benefits
Ensure that the resources (time, people, money) needed for the project are in place
Define
Measure
Analyze
Improve
Control
Define Phase Tools
High Level Process Map

Helps define the scope of the project
SIPOC

Identifies the inputs from the Suppliers and the outputs to the Customers
5 Why’s

A scoping tool used to refine the problem statement
Risk Cube

A tool used to understand , prioritize and mitigate risks to the completion of the project.
Project Contract

A document that is used to define an improvement project
The Measure Phase
Critical measures that are necessary to evaluate the success of the project are identified and determined
The purpose:
Determine data type and method for data collection
Validate the measurement system
Determine the statistical baseline performance
Evaluate current process stability and capability
Identify and prioritize the areas of opportunity in the process for analyze and improvement phases
Define
Measure
Analyze
Improve
Control
Measure Phase Tools
Current State Process Mapping

A set of tools used to help people see the process
Brainstorming Tools

A set of tools used to identify potential causes driving variation in the “Output”
Stability – Control Charts

A graph that is used to monitor, control and improve processes over time
Capability

A set of tools used to understand process performance
MSA: Measurement System Analysis

A statistical tool used to determine if a measurement system is “capable” of differentiating process variation.
The Analyze Phase
Identification of the critical few factors (X’s) that are driving
the variation in the process
The purpose:
Determine the root causes of the problem that needs improvement
Determine how to eliminate the gap between existing performance and the desired level of performance.
Determine which of various process improvement scenarios will have the best net benefit impact to the company.
Define
Measure
Analyze
Improve
Control
The Improve Phase
Implementing Solutions and Assessing Benefits
The purpose:
Develop an Experimental plan and Test Potential Solutions
Validate Potential Improvement by Pilot Studies
Correct/Re-Evaluate Potential Solution
Select the Best Solution
Mistake Proof Final Solution
Design an Implementation Plan
Define
Measure
Analyze
Improve
Control
Improve Phase Tools
Final State Process Mapping

A set of tools used to help people see the improved process
RACI

A tool used to determine who is responsible and accountable for various aspects of the improved processes.
5S

Organizing the workplace for maximum performance
Action Plan and Documentation

Implementation Action Plan with dates and assignments
Training Material
Processes and Procedures
Communication Plan
The Control Phase
An impeccably designed control system is crucial and the effectiveness of this system must be continually measured, challenged and revisited.
The purpose:
Develop a control plan
Implement new process training
Ensure new procedures are ingrained into normal operations.
Share and institutionalize the knowledge gained
Transfer of ownership and knowledge to process owner
Communicate the success stories
Celebrate the success!
Define
Measure
Analyze
Improve
Control
Lean
Root
Cause
Analysis

Monitor the System

Corrective
Action

Identify the
ROOT CAUSE

Understand the
Problem

Define the
Problem

Identify the
Problem

Root
Cause
Analysis

Monitor the System

Corrective
Action

Identify the
ROOT CAUSE

Understand the
Problem

Define the
Problem

Identify the
Problem

Root
Cause
Analysis
Monitor the
System

Corrective
Action

Identify the
ROOT CAUSE

Understand the
Problem
Define the
Problem

Identify the
Problem
Full transcript