Lean vs Six Sigma

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This presentation explains Lean management and Kaizen

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<ul><li><p>Lean vs. Six Sigma</p><p>Lean vs. Six Sigma * .PPT</p><p>All Rights Reserved, Juran Institute, Inc. </p><p>Lean vs. Six Sigma * .PPTLearning Objectives</p><p>Lean vs. Six Sigma * .PPT</p><p>All Rights Reserved, Juran Institute, Inc. </p><p>Lean vs. Six Sigma * .PPTSix Sigma Basic Premise</p><p>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?</p><p>Lean vs. Six Sigma * .PPT</p><p>All Rights Reserved, Juran Institute, Inc. </p><p>Lean vs. Six Sigma * .PPTSix Sigma DMAIC Methodology</p><p>Lean vs. Six Sigma * .PPT</p><p>All Rights Reserved, Juran Institute, Inc. </p><p>Lean vs. Six Sigma * .PPT Six Sigma Methodology</p><p>Lean vs. Six Sigma * .PPT</p><p>All Rights Reserved, Juran Institute, Inc. </p><p>Lean vs. Six Sigma * .PPTPoor DesignChanging NeedsMeasurement SystemInsufficient Process CapabilitySkills &amp; Behaviors Sources of Variation</p><p>Lean vs. Six Sigma * .PPT</p><p>All Rights Reserved, Juran Institute, Inc. </p><p>Lean vs. Six Sigma * .PPTLean Methodology</p><p>Lean vs. Six Sigma * .PPT</p><p>All Rights Reserved, Juran Institute, Inc. </p><p>Lean vs. Six Sigma * .PPTWhy Define a Process as a Value Stream?A Value StreamFocuses 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.</p><p>Lean vs. Six Sigma * .PPT</p><p>All Rights Reserved, Juran Institute, Inc. </p><p>Lean vs. Six Sigma * .PPTWhat Is Typically Found</p><p>Lean vs. Six Sigma * .PPT</p><p>All Rights Reserved, Juran Institute, Inc. </p><p>Lean vs. Six Sigma * .PPTThe Eight Wastes</p><p>Lean vs. Six Sigma * .PPT</p><p>All Rights Reserved, Juran Institute, Inc. </p><p>Lean vs. Six Sigma * .PPTHistory of Lean</p><p>Lean vs. Six Sigma * .PPT</p><p>All Rights Reserved, Juran Institute, Inc. </p><p>Lean vs. Six Sigma * .PPTThe MethodsLean &amp; Six SigmaImprove SpeedAchieve Breakthrough Dashboard Results Lower CostsCulture ChangeSustain PerformanceHigher Quality</p><p>Lean vs. Six Sigma * .PPT</p><p>All Rights Reserved, Juran Institute, Inc. </p><p>Lean vs. Six Sigma * .PPTChronic WasteCOPQ Six Sigma &amp; BeyondAccelerated Change Management SupportHow to Think About ImprovementRCCADFSSLean Six SigmaLessons Learned</p><p>Lean vs. Six Sigma * .PPT</p><p>All Rights Reserved, Juran Institute, Inc. </p><p>Lean vs. Six Sigma * .PPTMatching Improvement Process to Need</p><p>Lean vs. Six Sigma * .PPT</p><p>All Rights Reserved, Juran Institute, Inc. </p><p>Lean vs. Six Sigma * .PPTLean and Six Sigma</p><p>Lean vs. Six Sigma * .PPT</p><p>All Rights Reserved, Juran Institute, Inc. </p><p>Lean vs. Six Sigma * .PPTLean Project AttributesSimply 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.</p><p>Lean vs. Six Sigma * .PPT</p><p>All Rights Reserved, Juran Institute, Inc. </p><p>Lean vs. Six Sigma * .PPTSix Sigma AttributesSimply stated: Six Sigma is about Reducing Variation. It focuses on Effectiveness. The mean will most likely also be improved.Decrease defect rateIncrease Process Yield</p><p>Lean vs. Six Sigma * .PPT</p><p>All Rights Reserved, Juran Institute, Inc. </p><p>Lean vs. Six Sigma * .PPTLean and Six Sigma</p><p>Lean vs. Six Sigma * .PPT</p><p>All Rights Reserved, Juran Institute, Inc. </p><p>Lean vs. Six Sigma * .PPTLean Six SigmaLean 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.</p><p>Lean vs. Six Sigma * .PPT</p><p>All Rights Reserved, Juran Institute, Inc. </p><p>Lean vs. Six Sigma * .PPTWhich Technique to Begin With?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</p><p>Lean vs. Six Sigma * .PPT</p><p>All Rights Reserved, Juran Institute, Inc. </p><p>Lean vs. Six Sigma * .PPTLean ProjectsUse Lean when you are trying to streamline any process and reduce process waste.Improve assembly line throughputReduction in Finished Goods InventoryReduce the time to process new proposalsReduce machine setup timeImprove order processing time</p><p>Lean vs. Six Sigma * .PPT</p><p>All Rights Reserved, Juran Institute, Inc. </p><p>Lean vs. Six Sigma * .PPTSix Sigma ProjectsUse 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 machineReduce defects on a machine with multiple inputs and machine settingsReduce the amount of wait time for a call centerImprove the number of quality new hires</p><p>Lean vs. Six Sigma * .PPT</p><p>All Rights Reserved, Juran Institute, Inc. </p><p>Lean vs. Six Sigma * .PPTMixed ProjectsWhat 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.</p><p>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.</p><p>Lean vs. Six Sigma * .PPT</p><p>Lean vs. Six SigmaLean vs. Six SigmaLean Six Sigma is about improving what is important or critical to the customer and quality (CTQ). Y is the measurement of the CTQ that needs to be improved to meet customer needs.Once you understand what the Ys are, (those things critical to customers and quality), measure them and compare them to the targets. Understand the process characteristics that may cause variation and then reduce this variation by controlling the process variables. These process variables are called the Xs.There may be many Xs that can affect the Y.This simple equation is used to help communicate what a project is trying to accomplish. If Y is a function of X, then identify the Xs with enough precision to first improve them and then control them. Once Xs are maintained, the Y will be met.</p><p>Your role is to identify the Xs that cause negative variation and improve on them.Lean vs. Six SigmaThe five phases of DMAIC are summarized here. In the Define Phase, the problem or Y is defined.In the Measure Phase, the Y is measured (size and span).In the Analyze Phase, the Xs are analyzed and are proven or disproven as to whether they belong in Y = f (X).In the Improve Phase, the levels of Xs are determined to achieve the desired level of Y performance.In the Control Phase, the Xs are controlled to those determined levels so that the desired Y performance is ensured. Focus on controlling the Xs, instead of inspecting Y.Lean vs. Six SigmaThis slide summarizes how Six Sigma attacks problems. Translate a practical problem into a statistical problem so it can be analyzed statistically and come up with a statistical conclusion. Then translate the statistical conclusion back into the practical world so that you can implement those practical solutions.</p><p>Lean vs. Six SigmaAll products and services are designed with good intentions but without knowing what variables will cause the product or service to not meet customer needs over time. Over time excess variation from these root causes must be reduced.List examples of process variation in your system.Lean vs. Six SigmaThis slide summarizes the Lean methodology. Lean focuses on value and flow.Lean vs. Six SigmaAs part of the focus, processes are viewed as value streams. What value Is provided through each step of the process and what can be done to improve value-add. Waste and non-value add is removed or reduced.</p><p>Lean vs. Six Sigma</p><p>An activity that transforms or shapes material or information to meet customer requirements.</p><p>Those activities that require time or resources, but do not add value to the customers requirement (but may meet company requirements).Lean vs. Six SigmaOverproductionmaking or doing more than is required or earlier than neededWhat is the minimum quantity the customer needs? What is the minimum order quantity or lot size?Waitingfor information, materials, people, maintenance, etc.Any wait-time is waste.Look to eliminate or minimize by ensuring that items arrive only when they are truly needed.Transportmoving people or goods around or between sitesAlthough some is necessary, this is also pure waste.Calculate the amount of travel distance and number of times items, materials, and WIP are moved per day (Spaghetti Diagram).Look to minimize distance or number of daily moves.Poor process designtoo many/too few steps, non-standardization, inspection rather than prevention, etc. This is attacked through VA/NVA analysis.U-shaped cells and moving areas in close proximity.Standardize on a size (i.e. using same screw size for all assemblies).Design to eliminate inspection.Inventorywork-in-progress, papers, electronic files, etc.Calculate days of supply for all goods.Understand how long it takes to replenish each item (more frequent supplies means less inventory).Develop strategy for the amount of supply to keep. Monitor and measure.Motioninefficient layouts at workstations; poor ergonomics in officesMotion requires detailed analysis of movements.Defectserrors, scrap, rework, non-conformanceAny defect is waste.Use Pareto Analysis to identify key defect reasons.Need to understand causes of the errorsuse cause-effect diagram.Look to eliminate all causes through mistake proofing.Underutilized personnel resources and creativityideas that are not listened to, skills that are not utilizedRemember, that everyone can contribute.Lean vs. Six SigmaThe historical development that led to Lean and to Lean Six Sigma is summarized here.During the WWII war production years, the focus was on large quantities.The Toyota Production System (TPS) focused on streamlining flexible production flow through reduced batch sizes, improved quality, and producing to the pull of customer demand.JIT or Just-In-Time production expanded the application, philosophy, tools, and techniques of TPS to the U.S. and other parts of the world. JIT is synonymous with TPS.Lean took it one step further. Womack in his seminal book expanded TPS/JIT to include all industriesservices and other non-manufacturing industries. Lean focuses on flow, flexibility and speed, and the minimizing of waste. The waste or obstacles are obvious after some simple analysis.Six Sigma focuses on reducing variation and ensures that the Xs in Y = f (X) are determined and controlled to solve chronic problems. The Xs are usually not obvious. High consistent quality is the result.Lean Six Sigma deployment marries the two to enable companies to address a larger variety of problems. Depending on the type of problem, Lean or Six Sigma or a combination of both will be used.Lean vs. Six SigmaLean and Six Sigma enable and provide the right tools, the right projects, and the right processes to drive sustainable breakthrough improvements resulting in improved quality, lower costs, improved dashboard metrics, and culture change. Lean vs. Six Sigma</p><p>Breakthroughs achieve substantially higher levels of performance quickly. Breakthroughs do not just happen. They require a systematic change process, one that can be achieved with the project-by-project approach.Costs of Poor Quality (COPQ) are those costs that would disappear if every task were done perfectly the first time, every time. It can also be defined as the difference between the theoretical minimum cost and the actual cost.Improving products, processes, and services is a never-ending pursuit. Achieving breakthroughs may require a tenfold improvement, or even better than 3.4 ppm, which is a Six Sigma level.Lean and Six Sigma are methodologies and toolsets that can enable an organization to improve performance systematically.For an organization to continue making breakthroughs and meet the needs of their stakeholders, they must master the skills to plan, control, and improve quality. Lean vs. Six SigmaChange Management is about anticipating and planning for human reaction to improvements, in addition to the technical and business components of the change. It begins with understanding the values and habits of the population that must change. It develops the means to promote that change among the target population members, including communication, changes in reward and recognition, and adaptation of details of the change in ways that are consistent with the population values.Root Cause Corrective Action (RCCA): Provides a means to attack sporadic spikes or special causes that occur daily. Lean and Six Sigma (DMAIC): Lean is a set of methods used to eliminate non-value added tasks and increase speed. The Six Sigma method of Define-Measure-Analyze-Improve-Control (DMAIC) is a business improvement approach that drives dramatic breakthroughs in performance. Lean Six Sigma is not watered down Six Sigma, it means Six Sigma combined with the Lean methods to remove waste and speed up processes. The combination is more powerful than either alone.Design for Six Sigma (DMADV): This method of Define-Measure-Analyze-Design-Verify (DMADV) is used to design or redesign processes, services, and products at high sigma levels so that they are almost flawless from the beginning.Lean vs. Six SigmaLean vs. Six SigmaNote the shift in the mean. For example, the mean cycle time is reduced.Lean vs. Six SigmaNote the shift in the mean and the reduced variation. Lean vs. Six SigmaLean vs. Six SigmaAs needed, a project can be a Lean project, a Six Sigma project, or a Lean Six Sigma project which uses the tools of both Lean and Six Sigma, as appropriate.Lean vs. Six SigmaLean attacks obvious waste.Lean vs. Six SigmaExamples of Lean projects are listed here. Note the emphasis on flow, speed, and time.Lean vs. Six SigmaNote the emphasis on determining the root causes (that we do not know or are not obvious) and determining the best levels of Xs in Y=f (X).Lean vs. Six SigmaAs indicated earlier, both sets of tools may be needed.For example, a Six Sigma project may determine in the Analyze Phase that there is no standard process or there is no process in place. In the Improve Phase, the team will want to conduct a Lean event to develop the best standard work process.Alternatively, a Value Stream project may find that certain portions of the Value Stream have too much variation. Six Sigma tools will be used to determine the Xs that drive the variation in Y = f(X) and thus, improve process capability. If it is a big effort, then a Six Sigma sub-project is launched as part of that Value Stream Management project.Lean vs. Six Sigma</p></li></ul>