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  • An Introduction to

    Lean Six Sigma

  • What is Six Sigma?

    Six Sigma - The Initiative

    Process

    Systematic Approach to Reducing Defects which

    Affect What is Important to the Customer

    Tools

    Qualitative, Statistical and Instructional Devices for

    Observing Process Variables & Their Relationships as

    well as Managing their Character

  • Vision

    Goal

    Philosophy

    Metric

    Method

    Tool

    Symbol

    Benchmark

    Value

    s A level of performance that reflects significantly reduced defects in our products

    A statistical measurement of our

    process capability, as well as a

    benchmark for comparison

    A set of statistical tools to help

    us measure, analyze, improve,

    and control our processes

    A commitment to our customers

    to achieve an acceptable level

    of performance

    .... A means to stretch our

    thinking with respect to quality

    Sigma is a letter

    in the Greek Alphabet

    What is Six Sigma?

  • Define Measure Analyze Improve Control

    Six Sigma-DMAIC Methodology

  • 99% Good (3.8s) 99.9997% Good (6s)

    5,000 incorrect surgical operationsper week

    1.7 incorrect operations per week

    Two short or long landings at mostmajor airports each day

    One short or long landing everyfive years

    200,000 wrong drug prescriptionseach year

    68 wrong prescriptions per year

    General Rating Sigma Score % Accuracy DPMO(Defects per Million Opportunity)

    Virtual Perfection

    6 99.9997% 3.8

    Good

    5 99.98% 233

    4 99.40% 6210

    3.5 97.70% 22700

    ImprovementNeeded

    3 93.30% 66807

    2 69.10% 308537

    Six Sigma Literally Speaking

  • Sigma Scores Against Defects (per Million)-

    For Your Reference

    % Achievement Defects Sigma Score

    Defects per Million

    Opportunities

    (DPMO)

    100.00% 0.00% 6.01 3.30

    99.99% 0.01% 5.35 60

    99.98% 0.02% 5.04 200

    99.95% 0.05% 4.79 500

    99.90% 0.10% 4.59 1000

    99.80% 0.20% 4.38 2000

    99.70% 0.30% 4.25 3000

    99.50% 0.50% 4.08 5000

    99.00% 1.00% 3.83 10000

    98.50% 1.50% 3.67 15000

    98.00% 2.00% 3.55 20000

    97.50% 2.50% 3.46 25000

    97.00% 3.00% 3.38 30000

    96.50% 3.50% 3.31 35000

    96.00% 4.00% 3.25 40000

    95.50% 4.50% 3.20 45000

    95.00% 5.00% 3.14 50000

    94.50% 5.50% 3.10 55000

    94.00% 6.00% 3.05 60000

    93.50% 6.50% 3.01 65000

    93.00% 7.00% 2.98 70000

    92.50% 7.50% 2.94 75000

    92.00% 8.00% 2.91 80000

    91.50% 8.50% 2.87 85000

    91.00% 9.00% 2.84 90000

    90.50% 9.50% 2.81 95000

    90.00% 10.00% 2.78 100000

  • Whats it Based On ?

    Customer .....Anyone Who Receives

    Product, Service, or Information

    Opportunity .....Every Chance to Do Something

    Either Right or Wrong

    Successes Vs. Defects .....Every Result of an Opportunity Either Meets

    the Customer Specification or it Doesnt

  • Lean is a documentation of the key attributes

    of the Toyota Production System

    Set of principles for efficient operations

    having focus on

    -- Process improvement by

    reducing waste and cycle time

    -- Improving process flow

    Lean

  • IWEIGHING

    468Kg

    BLENDING COMPRESSION COATINGI I I

    3

    days

    MBR REVIEW

    I

    4 hours65 hours

    11.5 hrs4 hrs 40 mins44 hours

    13 hours6 hours 15 hours

    10 hours

    email

    2-3 day lead time 18 month

    rolling forecast

    Average # of Lots per

    month= 200

    ManufacturingDaily Schedules

    4-5 days

    Daily ShipSchedule

    BPX

    300mg

    Building 5 PHILI

    Yield = 99%Setup = 150 mins

    VA = 9 hrs1 Shift

    2 operators

    Yield = 98%Setup = 290 mins

    VA = 8 hrs 10 mins1 Shift

    2 operators

    Yield = 99%Setup = 195 mins

    VA = 705 mins2 Shifts

    2 operators

    464.7Kg 454.4Kg457.74 Kg

    Building 2Planning

    Provide 3 week projections to Mfg

    WAREHOUSE

    Time spent in Bldg 2 warehouse = 4hrs 40

    mins

    Yield = 100%Setup = 60 mins

    Wghing = 180 min1 Shift

    2 operators

    Number of reviews = 5

    Average Days = 5-11

    68 hours

    I I I468Kg

    PlanningSetup Batch

    RecordReview

    Cycle Time

    Total = 289 hrs

    VA = 29 hours

    Value Stream Map Can Help Identify

    Key Areas to Target for Improvement

  • Specify value by specific product

    Identify the value stream for each product

    Make value flow without interruptions

    Let the customer pull value from the product

    Pursue perfection

    Lean Principle

  • Overproduction-- More than is needed and higher quality than is needed

    Waiting (hang time) for machines, operators, raw materials,

    etc.

    Transportation of materials

    -- Wasted time due to unneeded product and material movement

    Process inefficiencies and waste:

    -- Inspection, NVA Work, duplication of effort

    (Inventory):

    -- Work in progress and finished product used to cover for process problems

    Motion

    -- Unnecessary movement, multiple handoffs, continually searching for materials, tools, supplies, etc

    Defects:

    -- Rework, missing information, not meeting specs

    Waste in Lean Principle

  • Key Lean Tools

    Process Mapping

    Value Stream

    Spaghetti

    Kaizen Event

    5S (Sort, Store, Shine,

    Standardize, Sustain)

    Mistake Proofing

    Standard Work

    Work Cell Design

    Line Balancing

    Videotaping

    Rapid Changeover:

    Single Minute

    Exchange of Dies

    (SMED)

    Kanban (just in time)

  • Shift Process Average

    Reduce Process

    Variation

    Robust Products and

    Processes

    Six Sigma Objectives Lean Objectives

    Improve

    Process Flow

    Reduce Process

    Complexity

    Reduce:

    Waste

    Non-Value

    Added Work

    Cycle Time

    Lean Six Sigma Improves Quality, Cost, and Delivery

    Improvement Objectives

  • Strategy

    Know Whats Important to the

    Customer

    Reduce Defects

    Center Around Target

    Reduce Variation

    Breakthrough Improvement Not Incremental!

  • Six Sigma . . . the Practical Sense

    A Different approach for the Business

  • THE GOALS OF SIX SIGMA

    Defect Reduction

    Yield Improvement

    Improved Customer Satisfaction

    Higher Net Income

  • Leadership Commitment, Competence & Involvement

    Methodology & Tools

    Data Driven

    Statistically Validated

    Best People 100% Dedicated to Defect Reduction

    Project Focused

    What Makes Six Sigma Different?

  • Old Philosophy of Quality New Philosophy of Quality

    LSL USL LSL USL

    Area outside the specification

    limits represent

    quality losses.

    Conformance to Specifications

    Goal Post Mentality

    Deviation from the target

    represents quality losses.

    Variation is Evil

    -Some Production Guy

    No Losses @ the Target

    The Changing Quality Philosophy

    LSL-Lower Specification Limit

    USL- Upper Specification Limit

  • The Cost of Poor Quality (COPQ) Iceberg

    Engineering change orders

    Traditional Quality Costs

    Lost Opportunity

    Hidden Factory

    Lost sales

    Late delivery

    Long cycle times

    Expediting costs

    Excess inventory

    Additional Costs of Poor Quality

    (intangible)

    (tangible)

    (Difficult or impossible to measure)Lost Customer Loyalty

    More Setups

    Scrap

    Rework

    Inspection

    Warranty

    Rejects

    Administration /

    Disposition

    Concessions

    Average COPQ approximately 15% of Sales

  • Getting to Six Sigma

    How far can inspection get us ?

    (Distribution Shifted 1.5s)

    s PPM

    2 308,5373 66,8074 6,2105 2336 3.4

    PPM Parts per

    million(normally for defects)

  • 1

    10

    100

    1000

    10000

    100000

    1000000

    1 2 3 4 5 6 7 8 9 10 11

    The Impact of Added Inspection

    Escaping

    PPM

    Number of Consecutive

    The Y axis represents the undetected defects-per-million defects. Each curve represents the inspection efficiency per inspector.

    99% 90% 80% 70%

    Note: All sigma values reflect a 1.5s shift

    Example: If the likelihood of detecting the defect is

    80% and we have 8 consecutive inspectors with this

    level of capability, we would expect about 4

    escaping defects out of every 1,000,000 defects

    produced.

    0.0

    1.0

    2.0

    3.0

    4.0

    5.0

    6.0

    7.0

    1 2 3 4 5 6 7 8 9 10

    Sigma

    Number of Consecutive

    The Y axis represents the inspection efficiency sigma. Each curve represents the inspection efficiency per inspector.

    99% 90% 80% 70%

    Example: If the likelihood of

    detecting a defect is 80%, it

    would require about 8

    consecutive inspectors to have

    a Six Sigma level of

    confidence that the defect will

    be detected.

  • BreakthroughStrategy

    Characterization Define

    Phase 1:

    MeasurePhase 2:

    Optimization

    Analyze

    Phase 3:

    Control

    Phase 5:

    1

    10

    100

    1000

    10000

    100000

    1000000

    3 4 5 6 7

    1,000,000

    100,000

    10,000

    1,000

    100

    10

    1

    2

    Sigma Scale of Measure

    P