Chapter 1

Enterprise Wide View

Objectives

• History of continuous improvement• Values and foundations of Six Sigma• Value and foundations of Lean• Integration of Lean and Six Sigma• Business Processes and Systems• Six Sigma and Lean Applications

History of Continuous Improvement

• 1. Walter Shewhart worked at Western Electric where he developed and used Control Charts.

• He is referred to as the father of statistical control because he brought together the disciplines of statistics, engineering, and economics.

• 2. Edward Deming developed a list of 14 points in which he emphasized the need for change in management structure and attitudes. Some of the points are:

• 1. Continuously improve products and services.• 2. Achieve quality without inspection.• 3. Minimize total cost by working with a single supplier.• 4. Train on the job.• 5. Eliminate slogans and targets.• 6. Institute pride in workmanship.• 7. Institute education and self improvement for everyone.

History of Continuous Improvement

• 3. Joseph Juran developed the managerial processes of quality planning, quality control, and quality improvement. Some of his approaches are:

• 1. Mandate quality improvement.• 2. Provide training on improving quality.• 3. Recognize and publicize winning teams.• 4. Philip Crosby originated the zero defects concept. His 14 steps to

quality improvement include:• 1. Form quality improvement teams.• 2. Establish a committee for zero defects program.• 3. Train all employees. • 5. Kaoru Ishikawa developed the cause and effect diagram. His

philosophy:• 1. Quality first, not profit.• 2. Consumer oriented, and respect for employees.

Some approaches to quality over the years (Table 1.1, page 5)

• Quality Circles (1979-1981): Small # of employees (10 or fewer) and their supervisor to form self improvement study groups.

• Statistical process control (Mid 1980’s): The application of statistics to control quality.

• ISO 9000 (1987 – present): International standards to document quality system.

• Baldrige Award (1987 – present): U.S award for quality.

• Lean Six Sigma (2002 – present): Both are necessary to drive sustained quality improvement.

Value and Foundations of Six Sigma

• Six Sigma philosophy:• 1. Use of teams that are assigned well defined

projects, that have a direct impact on the organization’s bottom line.

• 2. Training in advanced statistics and project management (black belts).

• 3. Emphasis on DMAIC approach to problem solving (Define, measure, analyze, improve, and control).

• 4. Management that supports these initiatives as a business strategy.

Value and Foundations of Six Sigma

• Definitions of Six Sigma:• 1. Six sigma quality means 3.4 defects per million

opportunities.• 2. Six sigma is a fact based, data driven

philosophy of improvement that values defect prevention over defect detection.

• 3. Six sigma is a set of tools including SPC (statistical process control), control charts, failure mode and effect analysis, and process mapping to drive quality improvement.

Value and foundations of Lean

• Definition: A systematic approach to identifying and eliminating waste through continuous improvement.

• Methods:• 1. Teamwork: Well informed cross trained employees

who participate in decisions that impact their work.• 2. Clean: Organized and well marked spaces.• 3. Pull systems: Instead of push systems.• 4. Reduced lead times: Through more efficient

processing, setups, and scheduling.

Integration of Lean and Six Sigma

• Lean focuses on waste reduction, whereas Six Sigma emphasizes variation reduction.

• Lean Six Sigma values defect prevention over defect detection.

• It reduces waste, variation, and cycle time and promotes work standardization and flow.

• Every employee should be involved.

Business Processes and Sytems

• A process is a series of steps designed to produce products and/or services (fig 1.1, page 10).

• A business system is designed to implement a process or a set of processes.

Six Sigma and Lean Applications• A team has been formed to reduce cycle times on an

appliance assembly line.• The team consists of 12 workers (6 from each of the two

shifts) as well as the 2 shift coaches and the line supervisor.• The team decides to start a job rotation process in which

each assembler will work one station for a month and then move on to the next station.

• The rotation system helped improve standard work, because now each person better understands what the next person needs.

• They are also better equipped to accommodate absences and the training of new people.

• The resulting reduction in cycle time surprises everyone.

Summary• Walter Shewhart was the father of statistical control.• Edward Deming developed the famous 14 Toyota quality

principles.• ISO 9000 is the international standard to document quality

system.• Baldrige award is the U.S. award for quality.• Six sigma quality means 3.4 defects per million

opportunities.• Lean is a systematic approach to identifying and eliminating

waste through continuous improvement.• Lean Six Sigma values defect prevention over defect

detection.

Home Work• 1. Why is Walter Shewhart called the father of statistical

control?• 2. What is Edward Deming famous for?• 3. What did Joseph Juran develop?• 4.What did Philip Crosby originate?• 5. What did Kaoru Ishikawa develop?• 6. What is ISO 9000?• 7. What is the Baldrige award?• 8. What does Six Sigma quality mean in terms of numbers?• 9. What is the definition of lean systems?• 10. What are the values of Lean Six Sigma?