Office of the Secretary of Defense Lean Six Sigma Overview

Mr. Wayne LeathersMaster Black Belt

DoD Lean Six Sigma Program Office Office of the Deputy Chief Management Officer

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Agenda

• What is Lean Six Sigma?

• DMAIC Overview

• Continuous Process Improvement

• Selecting The Right Projects

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Foundation of Lean 6 Sigma

-Dr. Mikel HarryMotorola

If you cannot express what you know in numbers,you don’t know much about it;

If you don’t know much about it, then you can’t control it;

If you can’t control it, you are at the mercy of chance.

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Foundation of Lean 6 Sigma

Definitions of Insanity:

Doing the same thing over and over and expecting a different outcome!

AND

Using the same logic to get out of the trouble that got you there in the first place!

-Albert Einstein

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Why Lean Six Sigma?

• It Works

• Proven Track Record

• It is needed

• DepSecDef has mandated that all of DoD begin practicing some form of Continuous Process Improvement (CPI)

• Many different methods of CPI available, but none have a more balanced approach than Lean Six Sigma

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What is Lean?

• Lean is a methodology that evaluates processes with a focus on Speed Efficiency

What you Believe it is... What it Actually is... What you Want it to be..

Cut Waste &Remove Non-Value

Added activities

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What is Lean?

AA BB CC DD EEL1

L2

L3Customer Customer

DA DB DC DD DE

SES Level

Action Officers

Staff Director

Lean breaks a process down to understand the steps and actions as they occur, the time and resources needed to complete, as well as the delay and wait time between process steps

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What is Six Sigma?

• Six Sigma evaluates a process in terms of performance, accuracy, and consistency

• Pain Points in performance are targeted for improvement

Time

s

LSL USL

s6

Standarddeviation

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The Look of 6s Performance

99%Good

99.99966%Good

20,000

5,000

200,000

7 hr per month

Lost articles of mail per hour 7

Incorrect surgeries per wk 1.7

Wrong prescriptions each yr 68

Hours without electricity 1 hrper 34 years

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Even at 99% quality (equivalent to a sigma level of 3.8),there would be:

•Unsafe drinking water almost 10 hours each month

•At least 200,000 wrong drug prescriptions per year

•Two short or long landings at O’Hare airport each day

•Over 90,000 wrong felony convictions per year

•20,000 lost or incorrectly delivered articles of mail per hour

Why Aim as High as 6 Sigma?

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2000

Why Use Lean Six Sigma?

• LSS is the CPI industry standardIncrease throughputShorten cycle timesReduce defectsLower costs

1992 1995 Today

MotorolaABBTIIBMDECKodak AlliedSignalGE

Siebe Foxboro Lockheed Martin BombardierJohn DeereWhirlpoolGenCorpNokiaSony

Siemens Compaq Seagate PACCAR Toshiba DuPont Dow Chemical

MaytagPraxairFordAir ProductsHoneywellJohnson ControlsJohnson & Johnson

Fannie MaeBank Of AmericaIntuitAXA EquitableUnited Health GroupCardinal HealthBlue CrossProvidence HealthHome Depot

US DoDWells FargoRobert HalfFifth Third BankCitiGroup

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Where Are Businesses Today?

Experts think most businesses fall between 3 - 4 sigma

DPMO

0

1

10

100

1000

10000

100000

1000000

0 1 2 3 4 5 6 7

Process Sigma

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A Program of Process Improvement

PracticalProblem

StatisticalProblem

StatisticalSolution

PracticalSolution

• Define project scope• Determine primary metric• Determine secondary metric(s)D

efine

• Validate the Y measurement system• Determine initial capability• Subjective exploration of potential XsM

easu

re• Characterize the XY relationships• Use graphical and quantitative analyses to

separate trivial many from critical few.Anal

yze

• Confirm critical Xs• Reduce variation• Shift the mean• Confirm resultsIm

prov

e

• Assess new process capability• Mistake-proof the process• Place controls on process• Document and share the resultsCo

ntro

l

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What else is Six Sigma?

Traditional ApproachFixing symptomsReactiveExperience-basedTweakingIf time permitsHierarchyFirefighting

Organizational IssueProblem resolution

Behavior

Decision making

Process adjustmentEmployee trainingChain of CommandDirection

Cultural Change

Six Sigma ApproachPreventing causesProactiveData-basedControlling

MandatedEmpowered teamsBenchmarking & metrics

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Fundamental Principle of LSS

We know we must change Xs to create a change in Y…

But how do we know which Xs to change and how to change them?

y = f (x1, x2, …)

process output is key process and input factorsthat cause variation in the outputa function of

That’s the purpose of Six

Sigma!

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What is our Mission?

Y (x)= f (x)(x)

Y (x)= f (x)(x)

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Who is the Customer?

How do we know if we are meeting our customer’s expectations?

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Who is the Customer?

• What is the mission of your organization?

• Who is the customer for your organization? Are they internal, external, or both Military, civilian, political, taxpayers?

• Do you know when you are succeeding or failing your mission?

• Are your customers satisfied with your organization’s performance?

?

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Determining Customer Expectations

• How are expectations communicated?

• Are the mission objectives measurable?

• Are customer expectations clearly understood throughout the entire organization?

• Have specifications been confirmed?

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Target USLLSL

Performing to Expectations

• The specification limits represent the parameters of performance desired by the customer.

• The Upper Spec Limit (USL) & Lower Spec Limit (LSL) represent the level of tolerance around this desired target.

• Together, they represent what the customer wants! Not what the process does.

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Benefits of Continuous Improvement

• Project benefits can come in many forms: Improved Mission Success Improved Quality Performance Improved Customer Satisfaction Improved Budget Execution Improved Financial Investment Productivity Improvements Throughput improvement On Time Delivery Reduced contractor dependency Accuracy Improvement Error Reduction Financial savings Cost Avoidance

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The Lean Six Sigma Cadre

• Green Belt Researcher, Data Analyzer, Team leader

• Champion Executive-level Sponsor/Supporter

• Senior Steering Committee OSD, Service, Agency, Activities Reps

• Master Black Belt Manages deployment of several Black Belts and

mentors Black Belts/ Green Belts

• Black Belt Full-time Practitioner

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Critical to SuccessQUALITY / COST / DELIVERY

Process Improvement Projects

Strategic Objectives

Key Processes

Metrics

Must be able to tell us if we are

meeting objectives

Strategy/Tactics

Prioritize initiatives according to their impact on the Mission Objectives that are most important to the achievement of our Strategic Objectives.

Mission Vision

Performance Management

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• Poor Project Selection Projects are too large in scope Projects are insignificant in value

• Allowing projects to drift from connection to Mission Strategy

• Undertaking more than staffed to handle

• Little or no sharing of results and best practices

• Forgetting about the people not directly involved in the deployment

• Forgetting human nature People are resistant to change and …”What’s in it for Me?” Not changing the culture of the organization

• Inadequate tracking and reporting of Key Process Indicators (KPIs) at the senior leadership level

Why CPI Initiatives Fail

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The Lean Six Sigma Tollgate

Project CharterProblem StatementDefined BenefitsBusiness Case

Process Map Potential Xs “To Be” Process Map Transition Plan

Measurable YCustomer Specs/VOC

Data Collection PlanData Collected

Critical Xs Improvement StrategyImprovement Model“X” Improvement Target

QC Chart

Cross Functional Team Data PresentationRun Chart; Histogram;

Mean/Stand. Dev.

Required Data Display: Pareto Charts; Fish

Bone / C&E; Histograms;

Mistake-Proofing Communication to Impacted Areas

Timeline Updated CTQs/CTPs Optional Data Display: Descriptive Stats.; Time

Series Plots; Control Charts; Box Plots

FMEA Project Documentation

SIPOC “Y” Performance Target XY Matrix Risk Analysis & Risk Mitigation Plan

I accept the Define Tollgate. Signed:

I accept the MeasureTollgate. Signed:

I accept the Analyze Tollgate. Signed:

I accept the Improve Tollgate. Signed:

I accept the ControlTollgate. Signed:

(Sponsor) (Sponsor) (Sponsor) (Sponsor) (Sponsor)

(Process Owner) (Process Owner) (Process Owner) (Process Owner) (Process Owner)

(MBB ) (MBB ) (MBB ) (MBB ) (MBB )

(Finance Owner) (Finance Owner) (Finance Owner)

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Involve, Align and Empower

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Lean Six Sigma

Time for Questions