creating lean six sigma organizations

CREATING LEAN SIX SIGMA

ORGANIZATIONS

DR. GAIL FERREIRA, DM, PMP, CSPO, LEAN

SIX SIGMA BLACK BELT

Copyright ©2014 – Dr. Gail Ferreira – All rights reserved

Introduction

Dr. Gail Ferreira is an Agilist who

incorporates a variety of lean

practices into organizations using

Lean Six Sigma Black Belt tools

and techniques.


Teaching:

Agile Management

Doctoral Research Methods

Multivariate Research

Systems Analysis

Doctoral Chair / Committee

University Reviewer

Learning Objectives

Discuss: Five Main Principles of Lean Thinking

Overview of Lean Six Sigma

Discuss: Lean Six Sigma tools and practices

Hoshin Kanri

Kaizen events

Discuss: How these practices can be used in

a variety of industries.


Five Main Principles of Lean Thinking

Value

The Value Stream

Flow

Pull

Perfection


Value

Value of the product from the eyes of the

customer.

Also known as the “Voice of the Customer” VOC.

Lean thinking always looks at the customers point

of view.


The Value Stream

In the value stream (process flow), one can easily

determine which areas to add or subtract first by

deciding which items are adding value to the

customer and which are not.


Flow

The next key principle in lean manufacturing is to ensure that all of the remaining steps in the process flow together.

This principle can be interpreted as a recommendation to arrange the process steps in such a way that makes the most sense.

The key to flow is to focus on the product and not on the methods for making the product.


Pull

Do not make a product until a customer orders it.

The customer pulls the product from the

manufacturer when they want it.


Perfection

The process is never entirely complete and that is essential that companies continuously work to improve processes.

Because customer wants and needs are continuously changing, processes, can never be perfect, and companies must continuously improve the process so it is as perfect as possible.


Quiz

What are the five principles of lean thinking?


Overview of Lean Six Sigma

Lean manufacturing originated with the Toyota Production System - developed by Taiichi Ohno in the early 1960’s to reduce waste (muda) at Toyota

Goal was to reduce inventory and improve the quality and cost of Toyota automobiles

Lean practices analyze all aspects of manufacturing cycle and find areas for improvement to reduce waste.

Six Sigma reduces variation of processes.


Key Tenets of Six Sigma

Define

Measure

Analyze

Improve

Control


Key Tenets of Six Sigma

The DMAIC Improvement Process

DMAIC refers to a data-driven improvement cycle used for improving, optimizing and stabilizing business processes and designs.

DMAIC is not exclusive to Six Sigma and can be used as the framework for other improvement applications. In many cases a much simplified DMAIC approach is more productive that a complex long term six sigma project, especially if it going to be used as part of a business leadership plan.


Define

Write down what you currently know. Clarify facts, set objectives and form the project team. Define the following:– A problem statement- The customer(s) involved- Critical to Quality, what are the critical process outputs?- The target process and other related business processes- Project targets- Project boundaries

A project charter or a project plan is often created and agreed during the Define step.


Measure

This is the data collection step. The team decides on what should be measured and how to measure it. This forms a data collection plan. It is usual for teams to invest a lot of effort into assessing the suitability of the proposed measurement systems. Good data is critical to the DMAIC process:- Define the process critical (inputs & outputs)- Define the measurement plan- Test the measurement system- Collect the data

A measurement system is performed at this stage.


Analyze

The data collected in the Measure step is analyzed to determine root causes of defects. Within Six Sigma, often complex tools are used. However, it is acceptable to use basic tools if these are appropriate:- Identify gaps between current performance and goal performance- Identify how the process inputs affect the process outputs- List and prioritize potential opportunities to improve- Identify sources of variation

Data is analyzed to understand the location or distribution of the data collected. Histograms and box plots are often used to do this.


Improve

Identify creative solutions to fix and prevent process problems. Some projects can utilize complex analysis tools like DOE (Design of Experiments), but try to focus on obvious solutions if these are apparent:- Create innovative solutions- Focus on the simplest and easiest solutions- Test solutions using Failure Mode Effects Analysis (FMEA)- Create a detailed implementation plan- Deploy improvements

Fishbone type Diagrams can be used throughout all DMAIC stages. Within the Improve step, we can use these to help brainstorm potential solutions.


Control

Monitor the improvements to ensure continued success.

Create a control plan.

Update documents, business process and training records as

required.

Control charts can be useful during the control stage.


Lean Six Sigma Application for

Software Products and Services

Lean Six Sigma can achieve combined benefits

of cycle time reduction and defects reduction.

Six Sigma focuses on defect reduction by

reducing process variations.

Identifying vision (VOC), problems, defining

goals, and conducting root cause analysis.


Lean Six Sigma Application for

Software Products and Services

Overproduction in manufacturing = development of

additional software features.

Wait in assembly line production = waiting for code

integration from multiple teams.

Non value items in software deployment could be approval

delays, rework efforts, and over engineering of the software

product.

Muda (waste) in software development: Misunderstanding of

software product requirements from the customer can result in

software defects.


Case Study: Global Physician Polling

Application

Define

Draft a project charter

Identify the voice of the customer

Translate voice of the customer into measurable

components



Application

Measure

Create a data collection plan

Construct a current state value stream map

Construct a future state value stream map

Develop a detailed process map



Application

Analyze

Construct data and process analysis

Determine the root cause of non value added steps

Determine the significant root causes



Application

Improve

Eliminate the significant root causes

Develop a pull system



Application

Control

Develop the control plan

Implement the control plan



Application



Application – Value Stream Map


Case Study: Global Physician Billing

System


Defining Value and Vision- Hoshin Kanri


Hoshin Kanri


Hoshin Kanri

Improve Margin by 5% points by 4Q: Increase of $250 k


Hoshin Kanri

Improve Margin by 5% points by 4Q, Increase of $250k.


Hoshin Kanri


Strategic X Matrix Example


Kaizen

Companies move closer to perfection by continuous improvement, also known as Kaizen.

Kaizen is the Japanese idea that great improvement comes from a series of small incremental gains.


Kaizen - Keys to Success

Need commitment from leadership (Chief Executives)

Lean champion and a governing committee

Need Lean SME to lead Kaizen events


Types of Kaizen

Kaizen events (can last for weeks)

Kaizen Blitz (short focused workshop)


Kaizen Blitz – Process to Improve


Conclusion

Lean Six Sigma Tools can be used to optimize software lifecycles.

Creating vision and strategy by using HoshinKanri can be used to start a Kaizen event.

Kaizen events can be modified to provide short bursts of productivity by evaluating current states of value stream maps.


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