Lean Six Sigma Introduction

Overview Learning Objectives

• Describe the origins of Six Sigma

• State the Lean Six Sigma core principles
• Be able to explain what is Lean Six Sigma in 30 seconds
• Explain what sigma means
• List and explain the 3 key aspects of Six Sigma

Lean Six Sigma Introduction 2

What is Six Sigma

• What it is… • What it is not…

• A focus on customer needs • An end in itself
• A method for making data-driven • A replacement for engineering or
decision process knowledge
• A focus on reducing variability • Applicable to every problem in its
• A prediction of product quality entirety
during design • A set of tools only
• A common communication
language
• A methodology
• A culture change

Lean Six Sigma Introduction 3

Core Six Sigma Principles

• “Reduce errors and waste in every kind of business endeavor to

please customers and fatten the bottom line” – The Power of Six
Sigma
• At the core of Six Sigma is effectiveness and efficiency – The Six Sigma
Revolution
• For Six Sigma to work, management at all levels of an organization
must be actively involved – The Six Sigma Revolution
• The customer feels the variation – they do not care about your
average

Lean Six Sigma Introduction 4

The “Quick Fix” Quality Initiatives

• U.S. businesses were looking for a quick fix

• Desperate to mimic the results of Japan, U.S. industries responded in panic
• First Statistical Process Control (SPC), Total Quality Management (TQM), Just
in Time (JIT), Kaizen and Hoisin planning
• Each has sound principles but were sold as a silver bullet…
• “Just a few training classes from the right consultant and your organization will be
magically transformed!”
• U.S. industries wanted to hear “quick and easy”

Lean Six Sigma Introduction 5

The Downfall of Many Quality Initiatives

• Downfall of many quality initiatives

• More concept and tools versus how-to
• Over-hyped as a quick fix
• Specialized quality groups/short term consultants versus organizational
culture change
• Those that succeeded had leadership support and organizational change was
achieved

Lean Six Sigma Introduction 6

The Right Idea…

• Quality is a whole organizationʼs pursuit – Baldrige Award

• Baldrige Award created in 1987 by President Reagan
• Recognizes quality is a commitment of the whole corporation
• Xerox was the genuine success story
• Baldrige Award loses momentum
• Work focused on the documentation to win the award and not making the
underlying changes in the organization
• The award implied that quality is a destination and once achieved, you go
back to business as usual
• Tarnished by failed award winners

Lean Six Sigma Introduction 7

Six Sigma Origins

• Motorola, not GE
• Implemented Demingʼs concept of reducing process variation and produced results
• The “sigma” approach became the focal point of Motorolaʼs quality effort
• Motorola CEO became a zealot – he talked of the successes of continuous
improvement everywhere he went!
• Six Sigma spreads
• AlliedSignal/Honeywell adopted Six Sigma in the 1990s due to Motorolaʼs success
• Achieved double digit growth!
• 1995 – GE former-CEO, Jack Welch, saw Honeywell success and launched Six Sigma
at GE
• GE already had innovative approaches to improvement
• Welch - “Practice the rigor and discipline” of Six Sigma and do not just make assumptions

Lean Six Sigma Introduction 8

Approaching Six Sigma

• So where is the magic of Six Sigma?

• Whole organization commitment to culture change
• Statistical based improvements
• Demingʼs concept of reduce process variation
• A how-to methodical approach
• Success stories continue momentum
• Pitfalls to avoid
• #1 risk is doing Quality for Quality's sake
• It must become a religion the organization embraces – like the Japanese did after
WWII
• Not a destination (e.g., Baldridge and CMM pitfalls)
• Doing the steps can NOT be the goal!

Lean Six Sigma Introduction 9

3 Key Aspects of Six Sigma

• Measure of Quality
• Six Sigma is a statistically-based quality program
• It is a methodology to improve process capability
• Methodology for Continuous Improvement
• Enabler for Culture Change

Lean Six Sigma Introduction 10

Measure from the Customerʼs Perspective

Customer’s View

Customer
Process A B C

Process
Project
Scope?
Make sure it touches the customer! Your View

Measure of quality must be based on the broader view of the customer, not just your piece

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Definition of “Sigma”

• Sigma
• Literally, the 18th letter of the Greek letter alphabet
• Represented by this symbol: s
• In statistics, sigma represents a measure of the variation of a process
(standard deviation)
• Sigma “level” refers to the ability to consistently perform within the range
(spec limits) of customer expectations
• For given set of limits, less variation -> higher Sigma level
• Why 6 Sigma? See next slide…

Lean Six Sigma Introduction 12

Focus on Reducing Variation
Case resolution cycle time in days
Internal Viewpoint –
Baseline Improved?
Improved avg.
12 27 performance
24 7 by 29% !!!

13 15
7 4
16 18
8 6
20 23
25 6
14 2 11.2 15.8

10 24
11 2 What customers feel
30 6
16 5 • Using mean-based thinking, we improve average performance by 29%, and
break out the champagne ...
Mean 15.8 11.2
• But our customer only feels the variance and cancels the next order!
Std Dev 7.0 9.0

Customers feel variance, not the mean

Lean Six Sigma Introduction 13
Cost of Quality – Six Sigma Perspective

Cost
Old Belief Appraisal
Increased quality means higher cost

Old Methodology 4s
Quality control through Appraisal alone

Quality

Cost Prevention
New Belief and
Increased quality can mean reduced cost Appraisal

New Methodology 4s
Quality control through Appraisal and Prevention 5s
6s
Cost definition broader and more accurate – includes failure

Lean Six Sigma Introduction Quality 14

3 Key Aspects of Six Sigma

• Measure of Quality
• Methodology for Continuous Improvement
• DMAIC – Process improvement methodology
• Acronym for Define, Measure, Analyze, Improve, Control
• DFSS – Design for Six Sigma for products
• A common language and discipline
• Enabler for Culture Change

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The DMAIC Premise

• For any Six Sigma DMAIC project, the following transfer function
applies:
Y = F(X1, X2 ,X3,…..Xn)
Project CTQ Contributing factors
identified in the Define Phase identified in the Analyze Phase

• By controlling the contributing factors, we can impact the Project CTQ in the
desired direction
• This independent variable (Y) will let us know how successful we were in
identifying and controlling the contributing factors

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Converging and Diverging Nature of Phases
Project concept
Converge on project scope, goals,
Define and Critical Y
Project charter

Measured Diverge to all relevant sources of

Measure understanding of current data and learning on the current
state and possible factors situation

Root cause and Converge on Critical Xs and a

Analyze
solution path most promising high-level solution

Diverge and converge both on the

Improve Confirmed, details of the solution and how it’s
detailed solution operationalized

Active Converge on specific leverage/control

Control controls points to ensure changes and gains
are sustained
Lean Six Sigma Introduction 17
DMAIC: Process Improvement
DMAIC

Statistically identify
Customer Measure current How can we fix
why, when and Maintain gains in
expectations of performance where the process the process? performance
the process? or product
breakdown

Define Measure Analyze Improve Control

- Scope - Baseline - Critical Xs validated - Implement solutions - Sustain gains

- Charter performance statistically around critical Xs - Formalize changes
- Critical “Y” - Goals identified -Risk assessment - Measure impact on Y - Control plan and
- Containment actions - Possible Xs measures
- Alternatives
identified evaluated - Ongoing ownership
- Quick Wins
Lean Six Sigma Introduction 18
3 Key Aspects of Six Sigma

• Measure of Quality
• Methodology for Continuous Improvement
• Enabler for Culture Change
• To be successful, Six Sigma requires a dramatic change in the way all levels of
an organization think, act, and interact
• Shift from addressing symptoms to discovering measurable relationships of Xs
and Ys and implementing a control plan

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Six Sigma Enabling Principles
Cultural Item Traditional Approach Six Sigma Approach

Problem solving approach Reactive Proactive

Problem resolution Fix Preventative
Decision making Experience based Data-based

Process adjustment Tweaking Controlling

Planning cycle Short-term Long-term

Design practice Ad-hoc Requirements-based

Structure Hierarchy Empowered teams

Improvement Somebody else’s job All play a role

Manpower Cost Asset

Lean Six Sigma Introduction 20

Six Sigma Mind Set

• Strive for…
• Simple but fully adequate processes
• 100% compliance with the processes
• Reduce opportunity for mistakes
• Elimination of bureaucracy
• Six Sigma emphasizes the “Control” phase of the project to ensure the
changes are…
• Accepted and utilized, long lasting
• Make it so it canʼt be done wrong – mistake proof!
• Visibility into projects and processes
• Project plans, project scorecards
• Escalation path
Things do not “just work” – they naturally degrade to a state of chaos if left unattended
Lean Six Sigma Introduction 21
Predictable Outcomes to Enable Growth

• “Predictable outcomes to enable growth”

• If the process/product is different every time it is hard to know what the
outcome will be
• Leaders’ responses to the question, “Why do you want Six Sigma?”
• “We’ve outgrown our processes.”
• “To get to the next level, we need a higher level of consistency.”
• High “downstream” cost structure

Lean Six Sigma Introduction 22

Making Change Last

• Observations
• Most organizations have undergone many improvement efforts
• Varying levels of success?
• Some skepticism on new “improvement” initiatives?

How would you summarize the key difference with Six

Sigma as presented today?

Lean Six Sigma Introduction 23

Green Belt and Black Belt Responsibilities

• Energy: Toward your projects and Six Sigma

• Energize: Create energy within your teams and organizations you work
with
• The right level of “edge”
• Edge is the balance between acting without thinking and “analysis paralysis”
• Drive for the right level of rigor/practical application
• The ability to say “No”
• Execution… results
• When will the customer feel change?
• When will the first “work unit” be done differently?
• When is your project sponsor counting on results?
• Target a “Real world event” milestone for your project

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Roles – Additional Reference

• Green Belts
• Part-time Six Sigma project leaders
• Leveraging ownership of processes and/or products “where they work” to produce results
• Operationalizing Six Sigma into their organizations
• 10-50% time commitment, depending
• If one of your major goals for year is Green Belt work, youʼll be closer to 50%
• Black Belts
• Full-time role working projects and leading change in organizations
• Mentored by a Master Black Belt and Quality Leader (QL)
• Provide training and mentoring to Green Belts
• Master Black Belt, Quality Leader, Six Sigma Champion
• Six Sigma methodology expert
• Provide mentoring, consulting, and training to Black Belts and Green Belts
• Overall responsibility for Six Sigma vision and strategy
• More varying organizational implementations of these roles

Lean Six Sigma Introduction 25

Roles – Additional Reference

• Project Sponsor/Champion
• Ultimately responsible for business results related to your project
• Cares the most about the project
• Provides strategic direction and scoping
• Process Owner
• Functional owner responsible for process/product being worked on
• Assumes ongoing responsibility for the process/product after project is
complete and the Green Belt/Black Belt is no longer involved
• Stakeholders
• People affected by your project whose support and involvement you need to
be successful

Lean Six Sigma Introduction 26

Project Sponsor Involvement

• Green Belt sets business impact milestones with Sponsor, Black Belt
mentor can help facilitate
• Sponsor holds Green Belt accountable for tollgate and business impact
milestones dates
• Sponsor holds you accountable for results
• Principle tollgate reviewer
• Weekly status updates as appropriate
• “10-5” updates 10 minutes to write, 5 to read
• Weekly sponsor review meetings if deemed necessary
• Use your Project Sponsor to…
• Bust through barriers
• Prioritize time for project
• Find balance between speed to action and rigor

Lean Six Sigma Introduction 27

Deployment Infrastructure -Typical Roles for Lean Six Sigma
Deployment
• Leads strategic direction in org.
• Owns vision, direction, integration, business results
• Manages Project Portfolio
Organizational • Leads change, provide strategic direction; should have minimum
• Prioritizes projects Yellow Belt
Leadership
• Advises Black Belts / process
managers • Operations, process owners, key
Master Deployment
Black Belts
functional areas
Champions

• Leads Lean Six Sigma projects • Process Manager

• Trains and coaches Project Teams • Works with LSSBB to facilitate process
• Full-time position
Black Belts Process Managers improvement
• Should have minimum greenbelt

• Helps Lead projects on behalf Process Improvement Team 1 Process Improvement Team 2
of the Black Belt– usually All Associates trained to LSSYB:
Kaizens Green Belts Green Belts • Understands goals / objectives; may or may not be
• Part time on projects; reports on a team
directly to the process manager • Applies improvement concepts to their job and
Yellow Belts work area
Team members Yellow Belts
• Continuous Improvement teams
• Provide project-specific support Team members
• LSS Aware or YB trained
• Typically, front-line associates
• Part time on projects, Yellow
Belts

Lean Six Sigma Introduction 28

Purpose of This Course

• Provide a competency level in Six Sigma to make you self-sufficient

and able to run a Lean Six Sigma project
• Regarding your projects, provide an opportunity…
• To work on your projects during the week
• See other projects as well
• Set specific business impact goals – when will things be different?

Lean Six Sigma Introduction 29

Review of the Overview Learning Objectives

• Describe the origins of Six Sigma

• State the core Six Sigma principles
• Be able to explain what is Six Sigma in 30 seconds
• Explain what sigma means
• List and explain the 3 key aspects of Six Sigma
• Explain the Green Belt process

Lean Six Sigma Introduction 30

Lean Introduction

Lean Six Sigma Introduction 31

Learning Objectives

• Learn the definition of Lean

• Understand a brief history of Lean
• Be able to describe ‘The House of Lean’ as a Foundational Concept
• Learn the names of basic Lean tools

Lean Six Sigma Introduction 32

What is Lean?

• At a macro (high) level, Lean is a philosophy that can be applied to

virtually any organization…doing more and more with less and less
• At a micro (implementation) level, Lean is the application of the lean
philosophy to continuously improve by removing “waste” in the
pursuit of excellence.

• Note: we will learn about Waste in detail in a subsequent

presentation in this course.

Lean Six Sigma Introduction 33

What is Lean?

• Lean, in the modern era, has many additions / variations:

• Six Sigma
• Theory of Constraints
• Lean Six Sigma
• And as applied to specific industries: Lean for Healthcare, Lean for
government, Lean finance, Lean Manufacturing

Lean Six Sigma Introduction 34

History of Lean

• 1910 – Henry Ford --- Continuous flow manufacturing

• 1926 – Sakichi Toyoda formed the Toyota Automatic Loom Works;
1937 – Sakichi Toyoda asked his son Kiichiro to contribute to
society…this was beginning of Toyota automobiles; Kiichiro applied
just in time approach to the company
• Taiichi Ohno, a Toyota Automatic Loom Works manager was assigned
the task to develop a manufacturing system that became the Toyota
Production System

Lean Six Sigma Introduction 35

History of Lean

• Taiichi Ohno, developed the concept of “Kaizen,” a Japanese word

that literally means “change for the better” and today is often
described as continuous improvement
• NOW – lean has been developed into a system with a systematic
approach that includes respect for people, a set of “flushed out” tools
and the pursuit to do more with less.

Lean Six Sigma Introduction 36

Lean Now / Lean Today

• Lean has the “bugs” out:

• Foundationally: trained people and well-maintained equipment
• Has two pillars:
• Right part/service at the right time
• Fix issues and problems now, not later
• Work to achieve excellence in:
• Quality, cost, on-time-delivery, morale, safety

Lean Six Sigma Introduction 37

Group/Individual questions

• How does this “Lean” philosophy compare with your current

organization’s approach to business?
• Does your current organization understand lean or has it been used
and then dropped?

Lean Six Sigma Introduction 38

The House of Lean

Achieving Excellence Through

Continuous Improvement

Quality, Cost, On-time-delivery, Morale, Safety

Continuously Improving Through

People working Collaboratively
The Part / Service
at the right time, in
Fix issues /
the correct
problems as they
amount (do not do
occur; do not
less than is
delay it increases
needed, do not do
waste
more than is
needed)

A Stable and Essential Foundation

Continuously trained and retrained people
Well maintained infrastructure (IT, computer systems, facilities, equipment)

Lean Six Sigma Introduction 39

The House of Lean

• All the parts of lean need to fit together like a well-developed house.
The system fails if there is:
• A weak foundation – untrained people, lax infrastructure
• Weak pillars – parts/services not delivered correctly or on-time in full;
problems linger and reappear in the current process or same problem in a
different process
• The roof is unstable: organization is undisciplined and not driving and striving
for excellence.

Lean Six Sigma Introduction 40

Brief Overview of a few Tools of Lean

• Just a few common tools of Lean

• 5S
• Value Stream Mapping
• Push vs. Pull System
• Kanban
• TPM

Lean Six Sigma Introduction 41

5S – Sort, Straighten, Shine, Standardize, and Sustain

5S is used to maintain an orderly

workplace; everything has a
place…take it down put it back

Lean Six Sigma Introduction 42

Traditional Mapping vs. Value Stream Mapping

Macro View Micro View

Flow Only Flow or Flow & Key Measures
Diagnose Performance

Lean Six Sigma Introduction 43

Push vs. Pull

Customer
Customer Driven

Process
Driven

Products and Services are Process Pulled vs. Pushed

With Lean we want a Pull Process

Lean Six Sigma Introduction 44

Push vs. Pull

Push: Pull:
Make all we can just in case Make what’s needed when we need it

• Production Approximation • Production Precision

• Anticipated Usage’s • Actual Consumption
• Large Lots • Small Lots
• High Inventories • Low Inventories
• Waste • Waste Reduction
• Management by Firefighting • Management by Sight
• Poor Communication • Better Communication
Lean Six Sigma Introduction 45
Kanban

Kanban refers to the visual control

system that signals replenishment
through the use of cards, visual
queues, etc. Easy to see in
manufacturing; for service it can be
used to replenish supplies. Most
often used at the point of use.

Lean Six Sigma Introduction 46

Total Productive Maintenance (TPM)

TPM would traditionally apply to

manufacturing. Now it can also be applied to,
for example, computer maintenance since
computer uptime and upgrades are
fundamental to operating many businesses. It
is important that all equipment be running in a
reliable manner. Breakdowns must be avoided.
Lean organizations have a TPM in place with
scheduled maintenance and robust IT
departments.

Lean Six Sigma Introduction 47

Other Tools of Lean

Andon Lamps

Error Proofing

90

80

70

60

Visual Controls
50

40 Time to complete operation

30

20

10

LeanStep
Six1SigmaStep
Introduction
2 Step 3 Step 4

Supermarkets

48
Key Points

• Lean is a philosophy – a way of thinking with a system of interconnected

processes with people who are practicing continuous improvement to
better deliver value to the customer
• A lean organization needs to have well-trained people with a passion for
problem solving and continuous improvement
• A lean organization must have a respect for people and develop people
professionally through challenge.
• Lean – there is no one way fits all, no recipe; however, the implementation
of lean can follow a set of principles, use a set of tools, to help understand
the gaps in your processes and help and organization strive toward
perfection…delivering the services / products that the customer wants and
needs.
Lean Six Sigma Introduction 49
Group/Individual questions

• Do you currently utilize lean tools for problem solving?

• Does leadership currently understand and embrace lean as a
philosophy?

Lean Six Sigma Introduction 50

Wrap-up

• Insights
• What new insight(s) did you gain?
• Actions
• What action(s) will you take to apply what you have learned?

Lean Six Sigma Introduction 51