lean six sigma
TRANSCRIPT
Lean Six Sigma BasicTo ensure customer success and enhance productivity
To drive performance and shareholder value
© Rajan Kanwar (647 406 6885)
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What is Lean in the context of improvement?
• A quality improvement methodology for making substantial, lasting changes in performance
• Focuses on maximizing value defined by the customer while minimizing waste
Lean Definition
Five Principles Value Value
Stream Flow Pull Perfection Six Sigma Types of Variability
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The Five Principles of Lean Thinking are:
Value
Value Stream
Flow
Pull
Perfection
Defined by the customer
Sequence of steps taken to create value
Developed so that the products or services move effectively
through the value stream
Make / process only what and when the
customer needs
Constantly seek out ways to perfect the system
Lean Definition
Five Principles Value Value
Stream Flow Pull Perfection Six Sigma Types of Variability
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Principle 1
Value
Value Stream
Flow
Pull
Perfection
Lean Definition
Five Principles Value Value
Stream Flow Pull Perfection Six Sigma Types of Variability
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Activities in a process are…
Value Add (VA)
Necessary Non-Value
Add (NNVA)
Waste (WS)
Lean Definition
Five Principles Value Value
Stream Flow Pull Perfection Six Sigma Types of Variability
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Value add are…
Add value defined by the customer Transform the product / service Be performed correctly the first
time
• Activities that change the material or information being worked on and increases it’s value
• To be classified as value add, process must:
Lean Definition
Five Principles Value Value
Stream Flow Pull Perfection Six Sigma Types of Variability
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Necessary Non-Value Add are…
• Activities that are essential to create value – such as legal or regulatory - but do not add value to the customer
Lean Definition
Five Principles Value Value
Stream Flow Pull Perfection Six Sigma Types of Variability
© Rajan Kanwar (647 406 6885)Slide #: 8
Waste activities are…
• Meaningless, and non-essential• Eight types are: (TIM WOODS)
•Physically moving papers, reports, equipment, and/or material from one area to another
Transport
•Files awaiting signature / approval; excessive office materials; files awaiting completion by others; servers storing data; unprocessed emails
Inventory
•Searching for digital and/or paper files, pens, staplers; carrying paper work to another process / department
Motion
•In a queue; for approval; to receive a document; for IT systems to refresh
Waiting
•Producing things too early; making unnecessary / too many copies; emailing / faxing documents which people already have
Over-Production
•Duplicating reports / info; constantly reviewing documents
Over-Processing
•Incorrect data entry / results; lost files / records
Defects
•Not recognizing peoples’ talents and abilities, capabilities or contribution towards being able to make improvements
Skills
Lean Definition
Five Principles Value Value
Stream Flow Pull Perfection Six Sigma Types of Variability
© Rajan Kanwar (647 406 6885)Slide #: 9
Key to Lean Improvement is…
VA
NNVA
WS
VA
NNVA
WS
VA
NNVA
WS
Lean Definition
Five Principles Value Value
Stream Flow Pull Perfection Six Sigma Types of Variability
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Principle 2
Value
Value Stream
Flow
Pull
Perfection
Lean Definition
Five Principles Value Value
Stream Flow Pull Perfection Six Sigma Types of Variability
© Rajan Kanwar (647 406 6885)Slide #: 11
Value Stream Mapping
• Lean introduces Value Stream Mapping as a tool to focus on lead time-related waste, such as: set-ups, queuing, and inventories
• Is the central tool for understanding how value is delivered
• Identifies VA / NVA steps and the information flow
Step 1 Step 2 Output
Lean Definition
Five Principles Value Value
Stream Flow Pull Perfection Six Sigma Types of Variability
© Rajan Kanwar (647 406 6885)Slide #: 12
An example of Value Steam Mapping
Customer wants to change wireless plan
Customer (cx) Requirement
CX calls provider
Input
Call is answered
Provider (Rep) asks CX to state
account info
Rep verifies and asks how s/he can help
CX asks Rep details about
existing plan
Rep states existing
plan details
CX confirms and asks for other plans
Rep retrieves
and discusses
other plans
CX analyzes and selects a new plan
Rep confirms
and processed the order
New plan activated
Value-add time:Non value add time:
New Plan
Output
CT CT CT CT CT CT CT CT CT CT
NVA VANNVA NNVANVA NVA NVA NVA NVA NVA
Opportunities: Potential Areas to focus on
NVA NVA NVA NVA NVA NVA NVA NVA NVA NVA
Customer experience?
Lean Definition
Five Principles Value Value
Stream Flow Pull Perfection Six Sigma Types of Variability
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Principle 3
Value
Value Stream
Flow
Pull
Perfection
Lean Definition
Five Principles Value Value
Stream Flow Pull Perfection Six Sigma Types of Variability
© Rajan Kanwar (647 406 6885)Slide #: 14
Flow …
• Is continuous• Has minimum movement
Lean Definition
Five Principles Value Value
Stream Flow Pull Perfection Six Sigma Types of Variability
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Principle 4
Value
Value Stream
Flow
Pull
Perfection
Lean Definition
Five Principles Value Value
Stream Flow Pull Perfection Six Sigma Types of Variability
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Pull system produces once demand is triggered
Downstream
• Customer pulls when needed
Trigger
• Informs production (what, when, where, how many)
Upstream
• Output is produced
Service
• Delivered to customer
Lean Definition
Five Principles Value Value
Stream Flow Pull Perfection Six Sigma Types of Variability
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Principle 5
Value
Value Stream
Flow
Pull
Perfection
Lean Definition
Five Principles Value Value
Stream Flow Pull Perfection Six Sigma Types of Variability
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Challenge status quo
• Constantly seek new ways to improve the process
Lean Definition
Five Principles Value Value
Stream Flow Pull Perfection Six Sigma Types of Variability
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Six Sigma improves quality and repeatability through the reduction in variation
Target
Reduce Variability
&
Center process
Lean Definition
Five Principles Value Value
Stream Flow Pull Perfection Six Sigma Types of Variability
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Types of variability to address
Arrival Request Capability Effort Subjective Preference
Lean Definition
Five Principles Value Value
Stream Flow Pull Perfection Six Sigma Types of Variability
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