lean six sigma overview | lassib | // version 1.0 lean six sigma overview

21
Lean Six Sigma Overview | LASSIB | http://www.lassib.org/ Version 1.0 Lean Six Sigma Overview

Upload: virgil-whitehead

Post on 04-Jan-2016

328 views

Category:

Documents


8 download

TRANSCRIPT

Page 1: Lean Six Sigma Overview | LASSIB | // Version 1.0 Lean Six Sigma Overview

Lean Six Sigma Overview | LASSIB | http://www.lassib.org/

Version 1.0

Lean Six Sigma Overview

Page 2: Lean Six Sigma Overview | LASSIB | // Version 1.0 Lean Six Sigma Overview

Lean Six Sigma Overview | LASSIB | http://www.lassib.org/

Version 1.0

'The savings as a percentage of revenue for a company can vary from 1.2% to 4.5%.’

'GE produces annual benefits of over $2.5 billion across the organization from Six Sigma.’

'Lean Six Sigma techniques implemented throughout the Army continue to prove successful, and leaders anticipate reaching a $2 billion-savings mark this year.’

'During the past 10 years Six Sigma has become one of the most widely practiced process improvement methodologies in both service and manufacturing industries.’

'No matter which level of Six Sigma training the respondents completed, their average salaries are higher than the respondents who didn't complete any Six Sigma training.’

*Source: Refer to Bibliography for details

Industry Snippets*

Page 3: Lean Six Sigma Overview | LASSIB | // Version 1.0 Lean Six Sigma Overview

Lean Six Sigma for Indian Govt.| August 2011 | LASSIB | http://www.lassib.org/

Examples of Implementations of Lean Six Sigma in the Government Sector• City of Fort Wayne, Indiana

– Improved repair of potholes within 24 hours from 77% of 99.6%– Reduce missed garbage collected from an average of 92 per week to 46 per week– Cost saving of $3.5 million

• Central Intelligence Agency (CIA)– CIA used Six Sigma to improve measures (e.g. date mining process) against terrorism (USA)

• Minnesota Pollution Control Agency– Reduced time taken to issue permits from 10% of permits issued within 180 days to, 75% of permits issues in 180 days

• Alexandra Hospital, Singapore– With the hospital’s performance standard set at 60 minutes, Total Turnaround Time (TAT) improved by 22%, with over half of our patients leaving the clinic within 1 hour

– Income Tax Department– Uses six sigma data analytic tools for identifying

3

Improving Efficiencies does not equate to job cuts

Page 4: Lean Six Sigma Overview | LASSIB | // Version 1.0 Lean Six Sigma Overview

Lean Six Sigma for Indian Govt.| August 2011 | LASSIB | http://www.lassib.org/

Examples of Areas of Improvements within Governments World over• Number of steps in a process• Number of approvals required• Amount of time required to process a request• Number of errors during work, requiring re-work• Level of user i.e. people satisfaction• Amount of duplication of effort• Number of mail, phone, and fax requests• Number of copies being made• Amount of storage space being used and how much is available

4

Source: Lean Six Sigma in the public sector, Xerox

Page 5: Lean Six Sigma Overview | LASSIB | // Version 1.0 Lean Six Sigma Overview

Lean Six Sigma Overview | LASSIB | http://www.lassib.org/

Version 1.0

Recognize

Recognize

Define

Define

Control

Control

Measure

MeasureAnalyze

Analyze

Improve

Improve

A set of proven tools and techniques

used to achieve business growth and goals

A framework that builds

a customer centric approach

with a focus on delivering

business results

A mechanism to develop

leadership talent

within the organization

A set of proven tools and techniques

used to solve business problems

What is Lean Six Sigma?

Page 6: Lean Six Sigma Overview | LASSIB | // Version 1.0 Lean Six Sigma Overview

Lean Six Sigma Overview | LASSIB | http://www.lassib.org/

Version 1.0

Why is it so successful?

Larger % of Employees

in Need of Skills to

Deliver

Customer Value and

Business Value

Lean and Six Sigma (6σ)Lean and Six Sigma (6σ)

A Comprehensive

Solution

% of employees

Skill to deliver business value and customer value

Page 7: Lean Six Sigma Overview | LASSIB | // Version 1.0 Lean Six Sigma Overview

Lean Six Sigma Overview | LASSIB | http://www.lassib.org/

Version 1.0

Lean vs. Six Sigma

LEAN Six Sigma

• Eastern Methodology• Started in Japan• Started at Toyota

• Western Methodology• Started in U. S. A.• Started at Motorola

• Tools and Techniques are • Philosophical• Conceptual

• Tools and Techniques are • Methodology Based• Data Based and Objective

• Helps identify and capture low-hanging fruit

• Helps solve complex problems

• Helps deliver quick results• Improvements take 1 week to 3

weeks

• Helps deliver long-term results• Improvements take 4 weeks to 6

months

• Examples of Techniques• Sort• Standardize• Value Stream Mapping

• Examples of Techniques• 7 QC Tools• Design of Experiments• Hypothesis Testing

Page 8: Lean Six Sigma Overview | LASSIB | // Version 1.0 Lean Six Sigma Overview

Lean Six Sigma Overview | LASSIB | http://www.lassib.org/

Version 1.0

When to use Lean or Six Sigma and When not to use?

1st Preference

2nd Preference

3rd Preference

4th Preference

Page 9: Lean Six Sigma Overview | LASSIB | // Version 1.0 Lean Six Sigma Overview

Lean Six Sigma Overview | LASSIB | http://www.lassib.org/

Version 1.0

When do Individuals and Organizations fail using Lean and Six Sigma?

Lack offocus

Lack offocus

Projects not

business related

Projects not

business related

Lack of sponsorsLack of

sponsors

Under investment

Under investment

Lack of mentorsLack of mentors

No focus on change

management

No focus on change

management

Why they fail?Why they fail?

Page 10: Lean Six Sigma Overview | LASSIB | // Version 1.0 Lean Six Sigma Overview

Lean Six Sigma Overview | LASSIB | http://www.lassib.org/

Version 1.0

Historical Perspective

10

Page 11: Lean Six Sigma Overview | LASSIB | // Version 1.0 Lean Six Sigma Overview

Lean Six Sigma Overview | LASSIB | http://www.lassib.org/

Version 1.0

Mean vs. Variation

11

Page 12: Lean Six Sigma Overview | LASSIB | // Version 1.0 Lean Six Sigma Overview

Lean Six Sigma Overview | LASSIB | http://www.lassib.org/

Version 1.0

Quantitative Perspective

12

99.99966% Right (6 Sigma)

No electricity for 1 hour every 34 years

1.7 incorrect operations per week

68 wrong prescriptions per year

99% Right (3.8 Sigma)

No electricity for 7 hours per month

5,000 incorrect operations per week

20,000 wrong prescriptions per year

σDefects per Million

Opportunities

1 697,672.15

2 308,770.21

3 66,810.63

4 6,209.70

5 232.67

6 3.40

Page 13: Lean Six Sigma Overview | LASSIB | // Version 1.0 Lean Six Sigma Overview

Lean Six Sigma Overview | LASSIB | http://www.lassib.org/

Version 1.0

Quantitative Perspective

13

Five Sigma 233 PPM

Two Sigma

308,770 PPM

Three Sigma 66,810 PPM

Four Sigma 6,209 PPM

World Class, Six Sigma 3.4 PPM

Airline fatality rate 0.52 PPM

Motorola for some of its processes in1990

Hospital fatality rate due to mistakesRestaurant billsDoctor prescriptionsPayroll processingAirline baggage handling

1:100

1:1,000,000

Sigma ()

Page 14: Lean Six Sigma Overview | LASSIB | // Version 1.0 Lean Six Sigma Overview

Lean Six Sigma Overview | LASSIB | http://www.lassib.org/

Version 1.0

A defect is any value that falls outside Customer Specifications

Statistical Perspective

14

Mean = 20

17

20

23

= 0.5 (Upper

Specification)

(6 )

()

(6 )

(Lower Specification)

Page 15: Lean Six Sigma Overview | LASSIB | // Version 1.0 Lean Six Sigma Overview

Lean Six Sigma Overview | LASSIB | http://www.lassib.org/

Version 1.0

Customers Perspective

15

Six Sigma Starts and Ends with Customers

CUSTOMERS

What do the customers expect out

of the process?

What is my customers view of the process?

What is my customers

definition of a defect?

How do my customers

measure the process?

Are my customers

referring and buying again?

Is my customer

satisfaction increasing?

Page 16: Lean Six Sigma Overview | LASSIB | // Version 1.0 Lean Six Sigma Overview

Lean Six Sigma Overview | LASSIB | http://www.lassib.org/

Version 1.0

Operational Perspective

16

Recognize

Recognize

Define

Define

Control

Control

Measure

MeasureAnalyze

Analyze

Improve

Improve

1.To finalize the prioritized list of initiatives that can be taken up as Six Sigma Projects, to enable delivery of the maximum value to your customers1.To finalize the prioritized list of initiatives that can be taken up as Six Sigma Projects, to enable delivery of the maximum value to your customers

Page 17: Lean Six Sigma Overview | LASSIB | // Version 1.0 Lean Six Sigma Overview

Lean Six Sigma Overview | LASSIB | http://www.lassib.org/

Version 1.0

Lean Six Sigma vs. ISO 9001

ISO 9001

Primary focus for organizations is certification

Primary focus is on process standardization

Is not prescriptive, i.e. does not tell you how to achieve it

Lean Six Sigma

Primary focus for organizations is delivering customer value & results

Process standardization is one part of Lean Six Sigma

Is prescriptive, i.e. teaches you best practice tools to achieve results

17

Page 18: Lean Six Sigma Overview | LASSIB | // Version 1.0 Lean Six Sigma Overview

Lean Six Sigma Overview | LASSIB | http://www.lassib.org/

Version 1.0

Lean Six Sigma vs. Total Quality Management (TQM)

Total Quality Management

Consists of tools and techniques to achieve quality e.g. 5S, Kaizen

Lacked focus of delivering organizational and customer value, resulting in fading out of management commitment

Lean Six Sigma

Structures these tools and techniques, and when to use effectively which one

Focuses on delivering organizational and customer value, resulting in sustaining management commitment

Includes all principles of TQM among others

18

Page 19: Lean Six Sigma Overview | LASSIB | // Version 1.0 Lean Six Sigma Overview

Lean Six Sigma Overview | LASSIB | http://www.lassib.org/

Version 1.0

Contact

WEBSITE

http://www.lassib.org/

EMAIL

[email protected]

SOCIETY HEADQUARTERS

#5-70, V. V. Nagar, Street No. 8, Habsiguda, Hyderabad, Andhra Pradesh, India - 500007

PHONE

India Landline: +91-40-40045614

India Fax:+91-40-40045615

India Toll-Free: 1-800-425-1388

Page 20: Lean Six Sigma Overview | LASSIB | // Version 1.0 Lean Six Sigma Overview

Lean Six Sigma for Indian Govt.| August 2011 | LASSIB | http://www.lassib.org/

Shilpa Kota, Secretary, Lean and Six Sigma International Board (LASSIB),A non-profit organization build on the principles of Gandhian Engineering

About the Lean and Six Sigma International Board (LASSIB Society)

20

Page 21: Lean Six Sigma Overview | LASSIB | // Version 1.0 Lean Six Sigma Overview

Lean Six Sigma for Indian Govt.| August 2011 | LASSIB | http://www.lassib.org/

About LASSIBWhat?

• Lean And Six Sigma International Board• A not-for-profit Society• In area of Lean Six Sigma and Business ExcellenceWhen? • Conceptualized in 2009• Came into existence in 2010• Registered in 2011

Why?• Lean Six Sigma concepts are here to stay• Spread the awareness of Lean and Six Sigma concepts• Share learning’s for the community at large

http://ww

w.lassib.o

rg/index.p

hp/about

-lassib