lean six sigma integrated

Lean Six Sigma

Copyright 2005, AIT Group Inc. All rights reserved. 1

Lean Six Sigma Lean Six Sigma IntegratedIntegrated

Lean Six Sigma


Lean and Six Sigma 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 CEOon integrating lean techniques intoITT’s Six Sigma Rollout

Six Sigma & Lean Integration


Lean Six Sigma Lean and Six Sigma Together

• Goal – Reduce waste and increase process speed

• Focus – Bias for action/ Utilize existing, proven Lean Tools

• Method – Kaizen events, Value Stream Mapping

• 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

Six SigmaQuality, Cost +

Explicit Approach

LeanSpeed + Waste + Implicit Approach

X

Lean Six

Sigma

Six Sigma Quality Enables Six Sigma Quality Enables Lean SpeedLean Speed

(Fewer Defects Means(Fewer Defects Means Less Rework)Less Rework)

Lean Speed Enables Lean Speed Enables Six Sigma Quality Six Sigma Quality

(Faster Cycles of (Faster Cycles of Experimentation/Learning)Experimentation/Learning)


Lean Six Sigma

Six Sigma with Lean Is the Integration of Two Powerful Business Improvement Approaches

• Lean• 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

• Six Sigma• 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

Precision + Accuracy + VOC

Speed + Low Cost + Flexibility


Lean Six Sigma

Integrating Lean and Six Sigma Initiatives

• 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


Lean Six Sigma Six Sigma and Lean

• 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


Lean Six Sigma

Six Sigma Improves Quality of Value Add StepsSix Sigma Improves Quality of Value Add Steps

Lean Six Sigma Synergy

# of Steps ±3 ±4 ±5 ±6

1 93.32% 99.379% 99.976799.99966%

7 61.63 95.733 99.839 99.9976

10 50.08 93.96 99.768 99.9966

20 25.08 88.29 99.536 99.9932

40 6.29 77.94 99.074 99.9864

Overall Yield vs. Sigma(Distribution Shifted ±1.5)

Source: Six Sigma Research Institute, Motorola University, Motorola, Inc.

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Lean Six Sigma Drives Quality

, Speed and Cost S

imulta

neously

Lean Six Sigma Drives Quality

, Speed and Cost S

imulta

neously


Lean Six Sigma

ImproveImprove

Lean Six Sigma

Improvement Process Road Map

• Review Project Charter • Validate Problem Statement 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 Potential Root Causes

• Reduce List of Potential Root Causes

• Confirm Root Cause to Output Relationship

• Estimate Impact of Root Causes on Key Outputs

• Prioritize Root Causes• Complete Analyze Gate

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

• Develop ‘To-Be’ Value Stream Map(s)

• Develop and Implement Pilot Solution

• Confirm Attainment of Project Goals

• Develop Full Scale Implementation Plan

• Complete Improve Gate

• Implement Mistake Proofing• Develop SOP’s, Training Plan & Process Controls

• Implement Solution and Ongoing Process Measurements

• Identify Project Replication Opportunities

• Complete Control Gate• Transition Project to Process Owner

• Project Charter• Voice of the Customer and 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

• Value Stream Mapping• Value of Speed (Process Cycle 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

• 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

• 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

• Value Stream Map for Deeper Understanding and Focus

• Identify Key Input, Process and Output Metrics

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

Tools

Activities

AnalyzeAnalyze ControlControlMeasureMeasureDefineDefine

Kaizen, 5S, NVA Analysis,Generic Pull Systems,

Four Step Rapid Setup Method

Kaizen, 5S, NVA Analysis,Generic Pull Systems,

Four Step Rapid Setup Method

Identify and Implement Quick ImprovementsIdentify and Implement Quick Improvements


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


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


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


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


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


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.


Lean Six Sigma

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


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.

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Six Sigma

Supply Chain

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The AIT Group excels in implementation … not recommendation!The AIT Group excels in implementation … not recommendation!

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:

www.theAITgroup.com

lean six sigma integrated

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