Lean vs Six Sigma

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<p>Lean vs. Six Sigma</p> <p>Learning Objectives</p> <p>1. Understand DMAIC and Lean Methodologies. 2. What are the differences between Six Sigma and Lean?</p> <p>3. What are the tools used for Six Sigma and Lean?4. Where are Six Sigma and Lean Methodologies used?</p> <p>Lean vs. Six Sigma 2 .PPT</p> <p>All Rights Reserved, Juran Institute, Inc.</p> <p>Six Sigma Basic Premise</p> <p>Outputs (CTQ)</p> <p>Inputs</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 3 .PPT</p> <p>All Rights Reserved, Juran Institute, Inc.</p> <p>Six Sigma DMAIC MethodologyDefineDevelop Project Charter Determine Customers &amp; CTQs Map High-Level Process Establish and Measure Ys Plan for Data Collection Validate Measurement System Measure Baseline Sigma Identify Possible Xs Test Hypotheses List Vital Few Xs</p> <p>Measure</p> <p>Analyze</p> <p>Improve</p> <p>Select the Solution Design Solution, Controls, and Design for Culture Prove Effectiveness</p> <p>Control</p> <p>Identify Control Subjects Develop Feedback Loops Develop Process Control Plan to Hold the Gains Implement, Replicate</p> <p>Lean vs. Six Sigma 4 .PPT</p> <p>All Rights Reserved, Juran Institute, Inc.</p> <p>Six Sigma Methodology Practical Problem Statistical Problem DefineProcess Characterization</p> <p>Measure</p> <p>YAnalyze Improve</p> <p>Process Optimization</p> <p>Statistical Solution</p> <p>Practical Solution</p> <p>XsControl</p> <p>Goal: Y = f ( x )Lean vs. Six Sigma 5 .PPT All Rights Reserved, Juran Institute, Inc.</p> <p>Sources of Variation</p> <p>y</p> <p>Poor DesignChanging Needs Measurement System Insufficient Process Capability Skills &amp; Behaviors</p> <p>xLean vs. Six Sigma 6 .PPT All Rights Reserved, Juran Institute, Inc.</p> <p>Lean MethodologyDefine Value Measure Value Analyze Process - FlowDefine Stakeholder Value and CTQs Define Customer Demand Map High-level Process Assess for 6S Implementation Measure Customer Demand Plan for Data Collection Validate Measurement System Create a Value Stream Attribute Map Determine Pace, Takt-time and Manpower Identify Replenishment and Capacity Constraints Implement S1-S3 Analyze the Value Stream Attribute Map Analyze the Process Load and Capacity Perform VA/NA Decomposition Analysis Apply Lean Problem Solving to Solve for Special Causes</p> <p>Improve Process - Pull Control Process</p> <p>Conduct the Rapid Improvement Event Design the Process Changes and Flow Feed, Balance, Load the Process Standardize Work Tasks Implement New Processes Stabilize and Refine Value Stream Complete Process and Visual Controls Identify Mistake-proofing Opportunities Implement S4-S6 Control Plan, Monitor Results, and Closeout ProjectAll Rights Reserved, Juran Institute, Inc.</p> <p>Lean vs. Six Sigma 7 .PPT</p> <p>Why Define a Process as a Value Stream?</p> <p>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.</p> <p>Lean vs. Six Sigma 8 .PPT</p> <p>All Rights Reserved, Juran Institute, Inc.</p> <p>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.</p> <p>Non-value added/waste Value added</p> <p>Lean vs. Six Sigma 9 .PPT</p> <p>All Rights Reserved, Juran Institute, Inc.</p> <p>The Eight Wastesadapted from Taiichi Ohno</p> <p>1. Overproductionmaking or doing more than is required or earlier than needed. 2. Waitingfor information, materials, people, maintenance, etc. 3. Transportmoving people or goods around or between sites. 4. Poor process designtoo many/too few steps, nonstandardization, inspection rather than prevention, etc. 5. Inventoryraw materials, work-in-progress, finished goods, papers, electronic files, etc. 6. Motioninefficient layouts or poor ergonomics at workstations or in offices. 7. Defectserrors, scrap, rework, non-conformance. 8. Underutilized personnel resources and creativityideas that are not listened to, skills that are not utilized.Lean vs. Six Sigma 10 .PPT All Rights Reserved, Juran Institute, Inc.</p> <p>History of Lean</p> <p>US war production Large quantities Rapid pace High training</p> <p>TPS Toyota Ohno and Just-in-Time Shingo Schonberger Flow of work Japanese Small batch Womack Mach. Mfg sizes Changed World Techniques New philosophy Eliminate Waste Takes TPS Added to 6s tool and imports Improve performance kit to US Flexibility</p> <p>JIT</p> <p>Lean</p> <p>Lean 6s</p> <p>1940</p> <p>1952</p> <p>1964</p> <p>1980</p> <p>1990</p> <p>2000</p> <p>2008</p> <p>Lean vs. Six Sigma 11 .PPT</p> <p>All Rights Reserved, Juran Institute, Inc.</p> <p>The Methods</p> <p>Methods</p> <p>ResultsImprove SpeedHigher Quality Lower Costs</p> <p>Lean &amp; Six Sigma</p> <p>Sustain PerformanceCulture Change</p> <p>Achieve Breakthrough</p> <p>Dashboard Results</p> <p>Lean vs. Six Sigma 12 .PPT</p> <p>All Rights Reserved, Juran Institute, Inc.</p> <p>How to Think About ImprovementThe Juran Trilogy PlanDFSS</p> <p>Control</p> <p>Improve</p> <p>RCCA Lessons LearnedSporadic Spike</p> <p>Lean Six Sigma</p> <p>Breakthrough</p> <p>Chronic Waste</p> <p>Six Sigma &amp; BeyondTime</p> <p>COPQAccelerated Change Management SupportLean vs. Six Sigma 13 .PPT All Rights Reserved, Juran Institute, Inc.</p> <p>Matching Improvement Process to Need</p> <p>Small Gains or Clear Solution</p> <p>Medium Gains</p> <p>Large Gains</p> <p>Launch New Product, Service, or Process</p> <p>Change Management</p> <p>Plan, Do, Study, Act (PDSA)</p> <p>Lean &amp; Six Sigma DMAIC</p> <p>Design for Lean Six Sigma</p> <p>Lean vs. Six Sigma 14 .PPT</p> <p>All Rights Reserved, Juran Institute, Inc.</p> <p>Lean and Six SigmaAnalyze ProcessFlow Improve ProcessPull</p> <p>Define Value</p> <p>Measure Value</p> <p>Control Process</p> <p>LEAN = Improvement principles focused ondramatically improving process speed and eliminating the eight deadly wastes.</p> <p>Define</p> <p>Measure</p> <p>Analyze</p> <p>Improve</p> <p>Control</p> <p>SIX SIGMA = Breakthrough Process, Design, orImprovement Teams focused on eliminating chronic problems and reducing variation in processes.Lean vs. Six Sigma 15 .PPT All Rights Reserved, Juran Institute, Inc.</p> <p>Lean Project Attributes</p> <p>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.</p> <p>ImprovementLean vs. Six Sigma 16 .PPT All Rights Reserved, Juran Institute, Inc.</p> <p>Six Sigma Attributes</p> <p>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</p> <p>ImprovementLean vs. Six Sigma 17 .PPT All Rights Reserved, Juran Institute, Inc.</p> <p>Lean and Six Sigma Lean = Rapid Improvement Teams focused on dramatically improvingprocess speed, and the elimination of the eight deadly wastes.</p> <p>Define Value</p> <p>Measure Value</p> <p>Analyze ProcessFlow</p> <p>Improve ProcessPull</p> <p>Control Process</p> <p>IMPROVED EFFICIENCY</p> <p>Six Sigma = Breakthrough Process Improvement Teams focused oneliminating chronic problems and reducing variation in processes.</p> <p>Define</p> <p>Measure</p> <p>Analyze</p> <p>Improve</p> <p>Control</p> <p>IMPROVED EFFECTIVENESS</p> <p>Lean vs. Six Sigma 18 .PPT</p> <p>All Rights Reserved, Juran Institute, Inc.</p> <p>Lean Six Sigma</p> <p>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.</p> <p>Define Value</p> <p>Measure Value</p> <p>Analyze ProcessFlow</p> <p>Improve ProcessPull</p> <p>Control Process</p> <p>Define</p> <p>Measure</p> <p>Analyze</p> <p>Improve</p> <p>Control</p> <p>Lean vs. Six Sigma 19 .PPT</p> <p>All Rights Reserved, Juran Institute, Inc.</p> <p>Which Technique to Begin With?</p> <p> 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 Other Reasons to Begin Lean?</p> <p>Lean vs. Six Sigma 20 .PPT</p> <p>All Rights Reserved, Juran Institute, Inc.</p> <p>Lean Projects</p> <p>Use Lean when you are trying to streamline any process and reduce process waste.</p> <p> Improve assembly line throughput Reduction in Finished Goods Inventory Reduce the time to process new proposals Reduce machine setup time Improve order processing time</p> <p>Lean vs. Six Sigma 21 .PPT</p> <p>All Rights Reserved, Juran Institute, Inc.</p> <p>Six Sigma Projects</p> <p>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</p> <p>Lean vs. Six Sigma 22 .PPT</p> <p>All Rights Reserved, Juran Institute, Inc.</p> <p>Mixed Projects</p> <p>What happens when you start a Six Sigma Project and it turns into a Lean project?</p> <p> 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 23 .PPT</p> <p>All Rights Reserved, Juran Institute, Inc.</p>