Lean Six Sigma Tools and Techniques Green Belt Certification

Session One(Best Practices Improvement Tools and Approaches)

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Session 1: Agenda Session 1: Agenda

– Introduction to Quality

Management Systems

and Lean Six Sigma

– Overview of DMAIC

– Lean Six Sigma Roles

– Lean Sigma Team

Exercises

Program DesignProgram Design

• The Lean Six Sigma Green Belt workshop is designed to help you learn how to make fact-based decisions as you create the Lean Quality Management System

• [It will enable you]To be data driven in your approach to improving processes and the outcomes for your customers.

• Lean Six Sigma is a strategy, a measurement and process that creates tremendous value

• Certification exams will be given at the conclusion of the workshop sessions.

Program Expectations:Program Expectations:At the completion of the Program,

you will clearly see:

1. Your role as a Lean Six Sigma Green Belt and Project Team Member in a Lean Sigma Quality Management system

2. How this will begin to help you eliminate the nagging and ongoing problems we face day-in-day-out, and the value of working on Lean improvement projects

3. Team-building skills and problem-solving tools that will allow you to measure and improve your processes

4. The value of the Lean Sigma model and consistent language across the organization

5. How the Lean Sigma Quality Tools can be used to .improve process cycle time and efficiency, eliminate waste and improve effectiveness.

6. How to look, learn and listen

Sigma ( ) – a Greek letter that indicates variation about the average of any process

It is a measure of process output consistency (standard deviation)

6 Sigma ( ) = 3.4 defects/per million opportunities

Lean Six Sigma eliminates waste and reduces cycle time

Lower Cycle Time = Higher process sigma = better process output

fewer errors

lower operating costs

lower risks

improved mission performance

better use of resources

What is Lean Six Sigma?What is Lean Six Sigma?

A Lean OrganizationA Lean Organization

• Features programs and products [that] are delivered in the right amounts, at the right time, to the right location, and in the right condition (see Lean Enterprise pg. #1)

• Programs and products are produced only for a specific customer rather than being added to inventory

• Allows production of a wide variety of programs and services, efficient and rapid changeover as needed, rapid response to fluctuating demand, and increased quality

• Fosters a company culture in which all employees continually improve their skill levels and production processes

Goals of the Lean OrganizationGoals of the Lean Organization((

1. Improve Quality

2. Eliminate Waste

3. Reduce Lead Time

4. Reduce Total Costs

Mental Models of QualityThere are six mental models of quality:

• Status Quo: Quality is not an issue at our organization . . . We hire only the best people and our quality is as good as [anyone’s] . . . We keep up to our usual standards.

• Quality Control: Quality is the process of inspecting and catching mistakes before they get shipped . . . We hold people accountable for their actions

• Customer Service: Quality is listening to our customers and fixing their problems as quickly as possible at no extra charge . . . We have an 800 number to deal with bugs and complaints

• Process Improvement: Quality is using SPC, re-engineering and other process management techniques [are used] to eliminate unacceptable variation . . . People in teams are a resource for fixing process variation

• Total Quality: Quality is a transformation in the way we work, think, and measure success . . . we operate a seamless value-adding system with all aspects optimizing for a common purpose

• Lean Six Sigma: Lean Management and Six Sigma working together

Lean Six Sigma at Noven

• Improve Quality: What is the mental model of quality that currently exists?

• Eliminate Waste: What do we know about the current areas of waste?

• Reduce Lead Time: What is our current lead time for key products?

• Reduce Total Costs: Where does the opportunity exist for the maximum cost reduction?

Lean Management System DefinedLean Management System Defined

“A systematic approach to identifying and eliminating waste

(non-value-added activities) through continuous improvement

by flowing the product at the pull of the customer in pursuit of

perfection”

A Lean Management Control System consists of 42 control points

grouped into 9 major key areas

Lean Management Lean Management is:is:

Lean Six Sigma: In A NutshellLean Six Sigma: In A Nutshell

“Lean Six Sigma (LSS) is a quality program that,

when all is said and done: • improves your customer’s experience,• lowers your costs • and builds better leadersLSS accomplishes this by reducing waste

and inefficiency and by designing a company’s programs, products and internal processes so that customers get what they want, when they want it, and when you promised it”…. Jack Welch

Evolution of Quality ManagementEvolution of Quality Management

Lean Six Sigma

Product Quality – 1920s-1950s

Projects Quality – 1980s

Process Quality - 1990s

6 Sigma Performance Excellence: New Millennium

A Historical Perspective

Typical PerformanceTypical Performance

AverageCompany

Purchased MaterialLot reject Rate

Best in Class

Domestic AirlineFlight Fatality Rate

IRS - Tax Advice (phone-in)

Restaurant Bills

Doctor Prescription Writing

Payroll Processing

Order Write-up

Journal Vouchers

Air Line Baggage Handling

(with ± 1.5 Sigma Shift)

Preventable hospitable

deaths

De

fect

s p

er m

illio

n o

ppo

rtu

nitie

s

YieldProcess Sigma

Defects per 1,000,000

Defects

per

100,000

Defects

per

10,000

Defects per

1,000

Defects per

100

99.99966% 6.0 3.4 0.34 0.034 0.0034 0.00034

99.9770% 5.0 230 23 2.3 0.23 0.023

99.3790% 4.0 6,210 621 62.1 6.21 0.621

93.320% 3.0 66,800 6,680 668 66.8 6.68

69.20% 2.0 308,000 30,800 3,080 308 30.8

31% 1.0 690,000 69,000 6,900 690 69

Process Sigma Conversion TableProcess Sigma Conversion Table

Practical ExamplePractical Example

Airline Baggage Handling• Assume 10 years ago Baggage Handling was a 2 Sigma

process and 5 years ago it was at 3 Sigma

• What percentage of the bags were lost at these levels?

• Assume 5 years ago the Airlines installed Bar Code tracking of baggage and improved the system to a 4 Sigma process.

• What changed? What’s the percentage of lost bags today?

• How much improvement is this over the 2 and 3 Sigma levels?

• How has that affected customers and the airlines?

20,000 lost articles of mail per hour

Unsafe drinking water almost 5500 seconds per year.

200,000 wrong drug prescriptions each year

No electricity for almost 7 hours each month

Practical Meaning of “99% Good” in USAPractical Meaning of “99% Good” in USA

6

Is 99% Good Enough?

At Six Sigma:At Six Sigma: 1.1 lost articles of mail each hour

180 seconds of unsafe drinking water per year

11 wrong drug prescriptions a year

No electricity for 3 minutes per year

The Lean Six Sigma SystemsThe Lean Six Sigma SystemsThe Lean Six Sigma SystemsThe Lean Six Sigma Systems

Technical

System

Management

System

(DMAIC)

Social System

TacticsTools

People

Project Management

LEAN SIGMA Lifecycle TollgatesLEAN SIGMA Lifecycle TollgatesLEAN SIGMA Lifecycle TollgatesLEAN SIGMA Lifecycle TollgatesDEFINE MEASURE ANALYZE IMPROVE CONTROL

Define Problem,

Team Charter,

& Project Plan

Develop the

SIPOC

Diagram

Develop the

CTQs &

SIFOC

Create

Measurement

Scorecards

Implement

Project Data

Collection Plans

Analyze

The

Data

Analyze

The

Process

Analyze

The Root

Causes

Generate

Solutions

Select/

Test

Solutions

Determine

Lean

Control Points

Implement

The Lean

Management

Response Plan

1

2

3

4 6 9 11

57

8

10 12

FactorsThe project…

RatingsSD D N A SA1-2 3-4 5-6 7-8 9-10

Weight

Total

A. addresses a legal or funder mandateB. addresses a strategic challenge (opportunity or threat)C. addresses an urgent need or KPID. will positively impact the dashboard or other measure on the Balanced ScorecardE. has data available to aid in development of measurements and indicatorsF. will positively impact customers (internal/external)G. will not require additional fundingH. will not require much additional staff timeI. can be completed in less than 6 monthsJ. can be controlled locally by team Grand Totals

Project Selection Matrix

Define Stage Cycle

Define the Problem

SIPOC

Map

Define

Customer

CTQs

Six Steps to Defining the Problem• Step 1: Identify the Project Theme and its Key

Drivers• Step 2: Identify the Customers and

Processes involved• Step 3: Identify the Team Members and

Project Champion• Step 4: Develop the Project Charter framework• Step 5: Define the Problem Statement• Step 6: Identify the ‘Desired State’ or

Vision/Goal(s)

Step 1: Identify Project & Drivers • Each project has a unique

Theme and [D]rivers associated with it

• The Theme is usually a paragraph in length

• The Drivers consist of between 3 and 6 items that are the driving force behind the project

Step 3: Identify Team members

• The project team consists of a Champion, Team Leader, and Team Members

• There are usually 6-7 people on a typical Lean Six Sigma project, with a maximum number usually at 10

Step 4: Project Charter Framework

The Project Charter Framework has the following components:• Business Case• Project Scope• Goals And Objectives• Problem Statement• Expected benefits• Milestones• Team members & Champion

The Charter is the contract between the team, its champion, and senior management/steering committee

• See Six Sigma for Everyone (pg. 33) for a Charter Framework example

Step 5: Create Problem Statement

Poorly Written Well Written Comment

The new database is to hard to use

Only 50% of users are using the database because based on interviews the new system is difficult to use and understand

Pain must be observable and measurable

Hotel occupancy is down because of poor service

Hotel occupancy is down

Occupancy may be down because of other causes: rates, parking, time of year, advertising.

We should set up a web site to increase sales of our product

The web site is a solution, but what is the problem?

A Problem Statement consists of 1-2 sentences describing the symptoms arising from the problem being addressed.

Problem Statement Guidelines

1. Develop a statement that accurately and clearly describes the current condition that you want to change

2. Use a simple statement of fact

3. Describe the ‘pain’ clearly and in measurable terms

4. Avoid implied causes or solutions

5. Pass the ‘So What’ test

6. Make it short and sweet = 25-30 words

Step 6: Identify the Desired Future State

• The ‘desired state’ is where you want to be when the problem is solved

• Defining the desired state, or vision, provides a focus and direction

• A measurable goal makes it possible to track progress

• It also helps to evaluate the quality of the solution• It describes the outcome you hope to reach by

solving the problem

•Confirm Customer Requirements

•Define The Measurement Scorecards

•Create Process Maps & Value Stream Maps

•Gather Initial Data and Determine Current

Performance

•Stratify Data

•Establish Cost Benefit

Measure Measure

•Define Problem Theme

•Create Charter

•Develop Change Management Roles

•Develop [Master plan]

•Create SIPOC Map

•Define potential waste

•Measure CTQs

DefineDefine

•Analyze the Measurement System

•Analyze the Process

•Develop Areas of Waste Hypotheses

•Gather Causal Data

•Determine & Validate Root Causes

•Analyze Areas of Waste

Analyze Analyze

•Identify Breakthroughs

•Identify / Select Practical Approaches

•Perform Cost/ Benefit Analysis

•Design Future State: FMEA

•Establish Performance Targets

•Poke-Yoke

•Quick-and-easy Kaizens

Improve/

Innovate

Improve/

Innovate

•Implement Solutions

•Measure Results

•P-D-C-A Process

•Lean Management Scorecards

Control Control

DMAIC Management Planning SystemDMAIC Management Planning System

The above elements are the 30 common building blocks of a LSS

Project Plan

The above elements are the 30 common building blocks of a LSS

Project Plan

Key Questions for Each ProjectKey Questions for Each ProjectKey Questions for Each ProjectKey Questions for Each Project