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Overview of Lean Six Sigma

Upon completion of this course, the participant will be able to: • Define Lean Six Sigma• Compare Lean with Six Sigma to process improvement• Select appropriate phases to apply Six Sigma DMAIC     Methodology• Outline the integration of Lean and Six Sigma to process improvement

Learning Objectives

How Will Lean Six Sigma Affect You?

Enables each of us to lead change by challenging what we do and how we work

Why am I doing what I am doing?  Is it adding value to my client and Fannie Mae?

Gives us practical metrics to evaluate success  Involves you and your team members in creating solutions

How does my work affect my customer? How does my work affect other teams (up and down stream)? How can I do it better?

Provides new skills for life!

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The Lean Six Sigma methodology will lead to more meaningful jobs (that bring value to our patients) in a better team environment!

What is Lean Six Sigma?

Lean Six Sigma is A common improvement methodology to impact the overall 

business Fact-based decision making Focused on minimizing waste and variation

Focused on strategic business priorities, including the voice of the customer 

Works best for narrowly scoped projects Dedicated resources with clear accountability

Quantified project benefits  Emphasis on sustaining the gains! Demonstrated track record of success across industries

Lean Defined… Six Sigma Defined…

Lean optimizes the process design

Came from process efficiency practices at Toyota

Addresses the fundamental flow of a process

Is a philosophy of continuous improvement that finds and reduces Wasteful or unnecessary activities Illogical or inefficient process

sequencing Rework Excessive cycle times

Lean improvements are typically logical and easy to understand

Lean addresses problems that are a “mile wide and an inch deep”

Six Sigma is a process improvement methodology addressing defects which arise due to variability in process execution

A defect can be any missed target or nonconformance to standard Six Sigma seeks the causes of variability Six Sigma projects often apply deep analysis Solutions are not readily apparent

Lean VS. Six Sigma to process improvement

VS

 Lean= efficient process design  Six Sigma= defect-free process execution “Six Sigma” is a metric used to evaluate the process

Example:  A “defect” is the failure of any process to deliver the intended 

result 3.4 defects per million opportunities for defects (99.9997% 

good)

“Lean Six Sigma” Defined

Identifying waste and making it visible is the first step

Elimination of waste . . . Including unnecessary process steps

1. Specifying the value of the process

2. Identifying the value stream for each process

3. Allowing value to flow without interruptions

4. Letting the customer pull value from the process

5. Continuously pursuing perfection

The 5 Principles Of Lean

Lean techniques are used to reduce unnecessary steps, eliminate rework, save time, save cost and extend capacity of valuable resources by:

Process Focus Of Lean Six Sigma

Inputs (X1, X2 . . Xn)Independent

CauseControl

OutputDependent on inputEffectMonitor

Lean focuses on optimizing process design

X YProcessY = f(x)

Dynamics Of Execution Strategy

Define Phase

Measure Phase

Analyze Phase

Improve Phase

Control Phase

Optimized Process

10 – 15 Xs

8 – 10 Critical Xs

4 – 8 Critical Xs

3 – 6 Critical Xs

30 – 50 Xs (or more!)

KPIV = Key Process Input Variable

Business Need

Y

X

Y = f(X)

Sustain!The

Funn

el E

ffect

DMAIC Process

DefineBusiness

Need

Measure Y

Analyze X

Improve Y = f(X)

Control Sustain!

The DMAIC Process Improvement Model

1DEFINEWho are the customersAnd what are their priorities?

2MEASUREHow is the process performing and how is it measured?

3IMPROVEHow do we remove the causesof the defect?

4ANALYZEWhat are the important causes of the defect?

5CONTROL

1. Define Phase

• Confirm Process Requirements (voice of customer)• Validate the definition of a “defect”• High level process mapping• Charter the project using metrics aligned with business 

objectives• Execute “quick wins” when possible

Confirm the business case for working the project

2. Measure Phase

• Collect baseline data on project metrics (from the Define phase)

• Verify integrity of baseline data for project metrics• Look for patterns in the data• Quantify the historical performance• Begin detailed process mapping

Before trying to “fix” the problem, confirm that you can measure the process

3. Analyze Phase

• Apply non-statistical techniques to brainstorm potentially critical Xs which may be driving variability in the project metrics (again from the Define phase)

• Apply statistical techniques to investigate the potentially critical Xs

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Only after completing Define and Measure do you begin the detailed investigation into Critical Xs

4. Improve Phase

• Develop potential solutions based on Critical Xs from the Analyze phase

• Pilot the “best fit” solution• Plan for full-scale implementation

Solutions are based on findings from the Analyze phase

5. Control Phase

• Develop Control Plan• Implement full-scale improvement• Implement controls• Train personnel and hand-off control plan to Management

Final solution is robust and becomes ingrained in the operation.

Define

Measure

Analyze

Improve

Control

1&2PHASETools:• Voice of Customer (VOC) Analysis• Process Mapping• Value Stream Mapping

The DMAIC Process with Tools

DAY 1

Define

Measure

Analyze

Improve

Control

3&4PHASETools:• FMEA• Quick Wins 5S• The 8 Wastes

The DMAIC Process with Tools

DAY 2

Define

Measure

Analyze

Improve

Control

5PHASETools:• Controls Plans• Lean Visual Controls• Mistake Proofing (Poke Yoke)

The DMAIC Process with Tools

DAY 3

Integrating Lean And Six Sigma

No matter the nature of a project, value and objectives must be understood

No matter the nature of a project, the process must be measurable

Depending on the nature of a project, Lean tools, Six Sigma tools, or a combination may be best to solve the problem

No matter the nature of a project, the final solution must be controlled.

Define

Improve

Control

Measure

AnalyzeLean Tools

SIX SIGMA TOOLS

Summary

• Lean Six Sigma gives you practical metrics to evaluate success in the context of corporate objectives.

• Lean Six Sigma is used to reduce unnecessary steps, eliminate rework, save time, save cost and extend capacity of valuable resources. 

• Five phases of DMAIC process is define, measure, improve, analyze, and control. 

Thank You