Lean Six Sigma Integrated

Lean Six Sigma

Lean Six Sigma Integrated

Copyright 2005, AIT Group Inc. All rights reserved.

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Lean Six Sigma

Lean and Six Sigma Integration

Copyright 2005, AIT Group Inc. All rights reserved.

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Six Sigma & Lean Integration

Lean Six Sigma

Why Integrate? “We knew we wanted to have Six Sigma Tools, that was clear. But we also decided that what really makes change in a factory are some of the Lean tools. Putting in a pull system, reducing batch sizes, significantly changing setup times, all of a sudden everything starts to flow. Those are the types of things we saw over time that really made a difference in our factories and so we said that has to be a part of this training.” – Lou Guiliano, ITT Industries CEO on integrating lean techniques into ITT’s Six Sigma Rollout

Copyright 2005, AIT Group Inc. All rights reserved.

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Lean Six Sigma

Lean and Six Sigma Together Lean Speed + Waste X +

Six Sigma

Quality, Cost + Explicit Approach

Implicit Approach

• Goal – Reduce waste and increase process speed • Focus – Bias for action/ Utilize existing, proven Lean Tools • Method – Kaizen events, Value Stream Mapping

Lean Six Sigma

• Goal – Improve performance on Critical Customer Requirements • Focus – Use repeatable DMAIC approach for sustained results • Method – Intense focus on projects, performance improvement a key leadership activity

Lean Speed Enables Six Sigma Quality

Six Sigma Quality Enables Lean Speed

(Faster Cycles of Experimentation/Learning)

(Fewer Defects Means Less Rework) Copyright 2005, AIT Group Inc. All rights reserved.

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Six Sigma with Lean Is the Integration of Two Powerful Business Improvement Approaches Precision + Accuracy + VOC

• Six Sigma • • • • • • • •

Lean Six Sigma

Speed + Low Cost + Flexibility

• Lean

Voice of the Customer (VOC) Statistical Process Control Design of Experiment Error-proofing Measurement Systems Analysis Failure Modes Effect Analysis Cause and Effect Analysis Hypothesis Testing

• Value stream mapping • Bottleneck identification and removal • “Pull” from the Customer • Setup and queue reduction • Process flow improvement • Kaizen • Supply Chain Strategy • 5S • S&OP

Copyright 2005, AIT Group Inc. All rights reserved.

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Integrating Lean and Six Sigma Initiatives

Lean Six Sigma

• Lean and Six Sigma can co-exist independently, but the benefits of integration are tremendous... • Single channel for employing limited resources • One improvement strategy for the organization • Highly productive and profitable synergy

…while the pitfalls of not integrating them are formidable • Divided focus of the organization • Separate and unequal messages for improvement • Destructive competition for resources and projects

Copyright 2005, AIT Group Inc. All rights reserved.

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Six Sigma and Lean

Lean Six Sigma

• Six Sigma is the “Unifying Framework” • Six Sigma provides the improvement infrastructure • CEO Engagement • Deployment Champions • Green Belts, Black Belts, Master Black Belts

• Over-riding methodology: DMAIC, DMEDI, DMADV

• Lean provides additional tools and approaches to “turbo-charge” improvement efforts • Tools: Set-up reduction, 5S, Kanban, Waste Reduction • Approaches: Kaizen, Mistake-proofing

Copyright 2005, AIT Group Inc. All rights reserved.

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Lean Six Sigma

Lean Six Sigma Synergy Overall Yield vs. Sigma (Distribution Shifted ±1.5σ)

±3σ

1

93.32%

Lean Reduces Non-Valued Add Steps

# of Steps

±4σ

99.379%

7

61.63

95.733

10

50.08

93.96

20 40

ix S an Le

±5σ

ed e Sp

sly u 99.839 neo lta u Sim t os C d 99.768 an

ty, i l 25.08 s Qua 88.29 ive r D a m Sig

6.29

99.9767

77.94

±6σ

99.99966% 99.9976 99.9966

99.536

99.9932

99.074

99.9864

Six Sigma Improves Quality of Value Add Steps

Source: Six Sigma Research Institute, Motorola University, Motorola, Inc. Copyright 2005, AIT Group Inc. All rights reserved.

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Lean Six Sigma

Lean Six Sigma

Improvement Process Road Map Define Activities

Measure

Analyze

• Review Project Charter • Validate Problem Statement

• Value Stream Map for Deeper

and Goals • Validate Voice of the Customer & Voice of the Business • Validate Financial Benefits • Validate High-Level Value Stream Map and Scope • Create Communication Plan • Select and Launch Team • Develop Project Schedule • Complete Define Gate

• Identify Key Input, Process and

• Reduce List of Potential

Output Metrics • Develop Operational Definitions • Develop Data Collection Plan • Validate Measurement System • Collect Baseline Data • Determine Process Capability • Complete Measure Gate

Root Causes • Confirm Root Cause to Output Relationship • Estimate Impact of Root Causes on Key Outputs • Prioritize Root Causes • Complete Analyze Gate

Tools

Understanding and Focus

• Identify Potential Root

Causes

Improve • Develop Potential Solutions • Evaluate, Select, and Optimize

Best Solutions

Control • Implement Mistake Proofing • Develop SOP’s, Training Plan

& Process Controls

• Develop ‘To-Be’ Value Stream

• Implement Solution and

Map(s) • Develop and Implement Pilot Solution • Confirm Attainment of Project Goals • Develop Full Scale Implementation Plan • Complete Improve Gate

Ongoing Process Measurements • Identify Project Replication Opportunities • Complete Control Gate • Transition Project to Process Owner

Identify and Implement Quick Improvements

• Project Charter • Voice of the Customer and

• Value Stream Mapping • Value of Speed (Process Cycle

Kano Analysis • SIPOC Map • Project Valuation / ROIC Analysis Tools • RACI and Quad Charts • Stakeholder Analysis • Communication Plan • Effective Meeting Tools • Inquiry and Advocacy Skills • Time Lines, Milestones, and Gantt Charting • Pareto Analysis

Efficiency / Little’s Law) • Operational Definitions • Data Collection Plan • Statistical Sampling • Measurement System Analysis (MSA) • Gage R&R • Kappa Studies • Control Charts • Histograms • Normality Test • Process Capability Analysis

• Process Constraint ID and Takt Time Analysis • Cause & Effect Analysis • FMEA • Hypothesis Tests/Conf. Intervals • Simple & Multiple Regression • ANOVA • Components of Variation • Conquering Product and Process Complexity • Queuing Theory

Kaizen, 5S, NVA Analysis, Generic Pull Systems, Four Step Rapid Setup Method • Replenishment Pull/Kanban • Stocking Strategy • Process Flow Improvement • Process Balancing • Analytical Batch Sizing • Total Productive Maintenance • Design of Experiments (DOE) • Solution Selection Matrix • Piloting and Simulation

Copyright 2005, AIT Group Inc. All rights reserved.

• Mistake-Proofing/

Zero Defects • Standard Operating

Procedures (SOP’s) • Process Control Plans • Visual Process Control Tools • Statistical Process Controls (SPC) • Solution Replication • Project Transition Model • Team Feedback Session

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Lean Six Sigma

Define

• Develop a Project Charter with the Project Focus, Key Metrics, and Project Scope • Select Team Members and Launch Project • Identify Stakeholders and develop a communication plan • Identify the Customers and Capture the “Voice of the Customer” Requirements (typically Quality and/or Speed) • Identify the Process Owner and Capture the “Voice of the Business” Requirements (typically Cost and/or Speed) • Develop Critical Customer Requirements (CCR’s) and Critical Business Requirements (CBR’s) • Finalize Project Focus and Modify Project Charter • Define Gate Review = key deliverable Copyright 2005, AIT Group Inc. All rights reserved.

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Lean Six Sigma

Measure • • • • • • • • •

Identify Key Input, Process and Output Metrics Clearly define Operational Definitions Develop a Data Collection Plan Validate the Measurement Systems Collect Baseline Data Determine Process Performance / Capability Validate the Business Opportunity Identify “Quick Win” Opportunities Measure Gate Review

= key deliverable Copyright 2005, AIT Group Inc. All rights reserved.

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Lean Six Sigma

Analyze

• Brainstorm Key Process Input Variables & Key Process Variables (KPIVs & KPV’s, I.e. Potential Root Causes) • Prioritize Root Causes • Conduct Root Cause Analysis • Validate the Root Causes • Estimate the Impact of Each Root Cause on the Project’s Performance Output • Quantify the Opportunity • Prioritize Root Causes • Analyze Gate Review

= key deliverable Copyright 2005, AIT Group Inc. All rights reserved.

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Lean Six Sigma

Improve • Develop Potential Solutions • Develop Evaluation Criteria & Select Best Solutions • Evaluate the Solutions for Risk • Optimize the Solution • Develop ‘To-Be’ Process Map(s) and High-Level Implementation Plan • Develop Pilot Plan and Pilot the Solution • Improve Gate Review

= key deliverable Copyright 2005, AIT Group Inc. All rights reserved.

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Lean Six Sigma

Control • • • • • • • • •

Institutionalize Process Changes and Controls Finalize SOP’s, Training Plan & Process Control System Implement Process Changes and Controls Stabilize and Begin Monitoring the Process Transition Project to Process Owner Identify Project Replication Opportunities Prove Changes Resulted In Improvement Calculate Financial Benefits Control Gate Review

= key deliverable Copyright 2005, AIT Group Inc. All rights reserved.

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Lean Six Sigma

Author

Steven Bonacorsi is a Senior Master Black Belt instructor and coach. He has trained hundreds of Master Black Belts, Black Belts, Green Belts, and Project Sponsors and Executive Leaders in Lean Six Sigma DMAIC and Design for Lean Six Sigma process improvement methodologies. Steven is a board member for the Boston Chapter of the Industry of Industrial Engineers. Full Bio: http://www.linkedin.com/in/stevenbonacorsi Lean Six Sigma White Belt Certification: • Add Lean Six Sigma White Belt (Basic Awareness) Training and Certification to your Resume or Job Skills. • Learn topics from one of the original Master Black Belts and world experts on Value Stream Mapping, 5s, Process Capability, Deployment Planning, Roles and Responsibilities, FMEA Risk Analysis, Control Plans and more. • Certificates will be signed for all who complete the 2 hour training session.

Copyright 2005, AIT Group Inc. All rights reserved.

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Learn More about The AIT Group http://www.theaitgroup.com

Copyright 2005, AIT Group Inc. All rights reserved.

Lean Six Sigma

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Lean Six Sigma

Who is AIT? • AIT is a premier provider of Lean, Six Sigma and Supply Chain solutions. • Solutions are customized to the customer – not one size fits all. • The company was started in 1998 by three individual that recognized extremely early in the industry how well Lean, Six Sigma and Supply Chain disciplines integrate. • Our goal is the complete transfer of knowledge via client specific solutions – not training. • Your instructors from AIT are Certified Master Black Belts and Lean Experts. • We have worked with many different clients and some of the largest companies in the world. • We have Offices in the US, Europe, Mexico and China.

The AIT Group is an international consulting firm that has been specifically designed to help companies increase profitability by improving overall business performance and customer satisfaction through the integrated application of:

Lean

Supply Chain Mgmt. Value $ Six Sigma

www.theAITgroup.com

The TheAIT AITGroup Groupexcels excelsin inimplementation implementation… … not notrecommendation! recommendation! Copyright 2005, AIT Group Inc. All rights reserved.

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