lean vs-six-sigma

Lean vs. Six Sigma

All Rights Reserved, Juran Institute, Inc. Lean vs. Six Sigma 2 .PPT

Learning Objectives

1. Understand DMAIC and Lean Methodologies.1. Understand DMAIC and Lean Methodologies.

4. Where are Six Sigma and Lean Methodologies used?

4. Where are Six Sigma and Lean Methodologies used?

3. What are the tools used for Six Sigma and Lean?3. What are the tools used for Six Sigma and Lean?

2. What are the differences between Six Sigma and Lean?

2. What are the differences between Six Sigma and Lean?


InputsInputs

Six Sigma Basic Premise

Outputs(CTQ)

Outputs(CTQ)

Do you know what is important to customers?Do you know what “Xs” are important to

meet customer needs?How do the “Xs” drive outcomes,

revenue, and cost?


ControlControl

ImproveImprove

AnalyzeAnalyze

MeasureMeasure

DefineDefine

Test HypothesesList Vital Few Xs

Identify Control SubjectsDevelop Feedback LoopsDevelop Process Control Plan to Hold the GainsImplement, Replicate

Select the SolutionDesign Solution, Controls, and Design for CultureProve Effectiveness

Develop Project CharterDetermine Customers & CTQsMap High-Level Process

Establish and Measure YsPlan for Data CollectionValidate Measurement SystemMeasure Baseline SigmaIdentify Possible Xs

Six Sigma DMAIC Methodology


Y

Xs

Measure

Analyze

Improve

Control

Pro

cess

Ch

ara

cter

izat

ion

Pro

cess

O

ptim

iza

tion

Goal: Y = f ( x )

DefinePractical Problem

Statistical Problem

Statistical Solution

Practical Solution

Six Sigma Methodology


y

x

Poor Design

Changing Needs

Measurement System

Insufficient Process Capability

Skills & Behaviors

Sources of Variation


Lean Methodology

Analyze the Value Stream Attribute MapAnalyze the Process Load and CapacityPerform VA/NA Decomposition AnalysisApply Lean Problem Solving to Solve for Special Causes

Stabilize and Refine Value StreamComplete Process and Visual ControlsIdentify Mistake-proofing OpportunitiesImplement S4-S6Control Plan, Monitor Results, and Closeout Project

Conduct the Rapid Improvement EventDesign the Process Changes and FlowFeed, Balance, Load the ProcessStandardize Work TasksImplement New Processes

Define Stakeholder Value and CTQs Define Customer Demand Map High-level ProcessAssess for 6S Implementation

Measure Customer DemandPlan for Data CollectionValidate Measurement SystemCreate a Value Stream Attribute MapDetermine Pace, Takt-time and ManpowerIdentify Replenishment and Capacity ConstraintsImplement S1-S3

ControlProcess

Improve Process - Pull

Analyze Process - Flow

Measure Value

Define Value


Why Define a Process as a Value Stream?

A Value Stream Focuses attention on what is important for the customer. Identifies all the necessary components to bring a product or

service from conception to commercialization. Identifies waste inherent in processes and works to remove

it. Reduces defects in products and deficiencies in processes. Focuses on improving specs and cost.


What Is Typically Found

Lean Value Stream Management starts with defining value in terms of products and process capabilities to provide the customer with what they need at the

right time and at an appropriate price.

Valueadded

Non-value added/waste


The Eight Wastes

1. Overproduction—making or doing more than is required orearlier than needed.

2. Waiting—for information, materials, people, maintenance, etc. 3. Transport—moving people or goods around or between sites.4. Poor process design—too many/too few steps, non-

standardization, inspection rather than prevention, etc.5. Inventory—raw materials, work-in-progress, finished goods,

papers, electronic files, etc.6. Motion—inefficient layouts or poor ergonomics at work-

stations or in offices.7. Defects—errors, scrap, rework, non-conformance.8. Underutilized personnel resources and creativity—ideas

that are not listened to, skills that are not utilized.

adapted from Taiichi Ohno


History of Lean

Toyota Ohno and

Shingo Flow of work Small batch

sizes New philosophy

Womack “Mach. Changed World”

Eliminate Waste Improve

performance Flexibility

1940 1952 1964 1980 1990 2000 2008

Just-in-Time Schonberger

“Japanese Mfg Techniques”

Takes TPS and imports to US

Added to 6s tool kit

Large quantities Rapid pace High training

US war production

TPS

Lean

JIT

Lean 6s


The Methods

LeanLean&&

Six Six SigmaSigma

LeanLean&&

Six Six SigmaSigma

Improve SpeedImprove Speed

Achieve BreakthroughAchieve Breakthrough Dashboard Results Dashboard Results

Lower CostsLower Costs

Culture ChangeCulture ChangeSustain PerformanceSustain Performance

Higher QualityHigher Quality

Methods Results


Chronic Waste

COPQ

Chronic Waste

COPQ

Six Sigma& Beyond Six Sigma& Beyond

Time

BreakthroughBreakthrough

Accelerated Change Management SupportAccelerated Change Management Support

How to Think About Improvement

Sporadic Spike

RCCARCCADFSSDFSS Lean Six SigmaLean Six Sigma

The Juran Trilogy ®The Juran Trilogy ®

Plan Control Improve

Lessons LearnedLessons Learned


ChangeManagement

ChangeManagement

Plan, Do, Study, Act

(PDSA)

Plan, Do, Study, Act

(PDSA)

Lean &Six Sigma

DMAIC

Lean &Six Sigma

DMAIC

Design forLean

Six Sigma

Design forLean

Six Sigma

Unclear

SolutionC

lear

S

olut

ion R

adical

Mod

erat

e

Small Gains or Clear Solution

Launch New Product,

Service, or Process

LargeGains

MediumGains

Matching Improvement Process to Need


Lean and Six Sigma

LEAN = Improvement principles focused on dramatically improving process speed and eliminating the eight deadly wastes.

Improve Process-

Pull

ControlProcess

AnalyzeProcess-

Flow

Measure Value

DefineValue

SIX SIGMA = Breakthrough Process, Design, or Improvement Teams focused on eliminating chronic problems and reducing variation in processes.

Improve ControlAnalyzeMeasureDefine


Lean Project Attributes

Improvement

Simply stated: “Lean is about moving the Mean.” It focuses on efficiency.

Lean reduces average cycle time. Lean reduces excess inventory. Lean improves average response time.


Six Sigma Attributes

Improvement

Simply stated: “Six Sigma is about Reducing Variation.” It focuses on Effectiveness. The mean will most likely also be improved.

Decrease defect rate Increase Process Yield


Lean and Six Sigma

Six Sigma = Breakthrough Process Improvement Teams focused on eliminating chronic problems and reducing variation in processes.

Lean = Rapid Improvement Teams focused on dramatically improving process speed, and the elimination of the eight deadly wastes.

IMPROVEDEFFICIENCY

Improve Process-

Pull

ControlProcess

AnalyzeProcess-

Flow

Measure Value

DefineValue

IMPROVEDEFFECTIVENESSImprove ControlAnalyzeMeasureDefine


Lean Six Sigma

Lean Six Sigma is an approach to integrating the power of Six Sigma Tools and Lean Enterprise Tools which can be applied within an organization to create the fastest rate of improvement, maximize shareholder value, and increase customer delight.

Improve Process-

Pull

ControlProcess

AnalyzeProcess-

Flow

Measure Value

DefineValue

Improve ControlAnalyzeMeasureDefine


Which Technique to Begin With?

Other Reasons to Begin Lean?

It is often advantageous to begin with Lean projects.– These are easier to understand and implement.

Begin with streamlining processes and Rapid Improvement Events.

– This gets the operation in good order.– Chronic problems are now easier to deal with.– “Low Hanging Fruit” is eaten.

Next, select Six Sigma projects


Lean Projects

Use Lean when you are trying to streamline any process and reduce process waste.

Improve assembly line throughput

Reduction in Finished Goods Inventory

Reduce the time to process new proposals

Reduce machine setup time

Improve order processing time


Six Sigma Projects

Use Six Sigma where process metrics are more difficult to collect or understand, and project success requires analysis of multiple input factors (Xs). These are often chronic problems.

Improve yield on a continuously running machine

Reduce defects on a machine with multiple inputs and machine settings

Reduce the amount of wait time for a call center

Improve the number of quality new hires


Mixed Projects

What happens when you start a Six Sigma Project and it turns into a Lean project?

It is all about the correct tools.

Use the Lean tools for project success.

What happens if a Lean project turns into Six Sigma?

Depending when this is discovered, it may mean going back to utilize some Six Sigma tools before proceeding.

lean vs-six-sigma

Engineering

juran institute

lean methodologies

process flow measure

process load

lean problem

lean value stream management

lean methodology

value stream complete