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Lean Six Sigma Overview

History of Six Sigma

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1950 1960 1970 1980 1990 2000

W. Edwards Deming introduces quality management to Japanese manufacturing

Motorola startsSix Sigma program

1983

1979GEAllied Signal

1997Philip Crosby introduces concept of zero defects

IBM

Ford adopts quality management

Lockheed-MartinSonyPolaroidJP MorganJ&J

1995

Joseph Juranpublishes Managerial Breakthrough

Manufacturing

Services

• 1984 Bob Galvin of Motorola edicted the first objectives of Six Sigma– 10x levels of improvement in service and quality by 1989– 100x improvement by 1991– Six Sigma capability by 1992– Bill Smith, an engineer from Motorola, is the person credited as the father of Six Sigma

• 1984 Texas Instruments and ABB Work closely with Motorola to further develop Six Sigma• 1994 Application experts leave Motorola• 1995 AlliedSignal begins Six Sigma initiative as directed by Larry Bossidy

– Captured the interest of Wall Street

• 1995 General Electric, led by Jack Welsh, began the most widespread undertaking of Six Sigma even attempted.

• 1997 To present Six Sigma spans industries worldwide

Six Sigma in 30 Seconds…….

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Six Sigma is a process that focuses a team on a specific problem or opportunity.

The team identifies factors that effect the process, gathers evidence, conducts analysis, tests

solutions and produces quantifiable, sustainable improvements that impact the business.

Key Points of our 30 Second Lesson

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Six Sigma is a process that focuses a team on a specific problem or opportunity.

The team identifies factors that effect the process, gathers evidence, conducts analysis, tests

solutions and produces quantifiable, sustainable improvements that impact the

business.

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What is Six Sigma…as a Symbol?σ sigma is a letter of the Greek alphabet.

– Mathematicians use this symbol to signify standard deviation, an important measure of variation.

– Variation designates the distribution or spread about the average of any process.

The variation in a process refers to how tightly all the various outcomes are clustered around the average. No process will produce the EXACT same output each time.

Wide VariationNarrow Variation

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What is Six Sigma…as a Value?

Sigma is a measure of deviation. The mathematical  calculation for the standard deviation of a population  is:

- Sigma can be used interchangeably with the statistical term standard deviation.

- Standard deviation is the average distance of data points away from the mean in a distribution.

By definition, the standard deviation is the distance between the mean and the point of inflection on the normal curve.

Point of Inflection

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The probability of creating a defect can be estimated and translated into a “Sigma” level.

What is Six Sigma…as a Measure?

*LSL – Lower Spec Limit*USL – Upper Spec Limit

The higher the sigma level, the better the performance. Six Sigma refers to a process having 6 standard deviations between the average of the process center and the closest specification limit or service level.

+6-1-3-4-5-6 -2 +4+3+2+1 +5

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“Sigma Level” is– A statistic used to describe the performance of a process relative to the 

specification limits

– The number of standard deviations from the mean to the closest specification limit of the process

The likelihood of failure decreases as the number of standard deviations that can be fit between the mean and the nearest spec limit increases.

USL

6 Sigma

5 Sigma

4 Sigma

3 Sigma

2 Sigma

1 Sigma

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What is Six Sigma…as a Metric?

Each of these metrics serves a different purpose and may be used at different levels in the organization to express the performance of a process in meeting the organization’s (or customer’s) requirements. We will discuss each in detail as we go through the course.

• Defects• Defects per unit (DPU)• Parts per million (PPM)• Defects per million opportunities

(DPMO)• Rolled Throughput yield (RTY)• First Time Yield (FTY)• Sigma (s)

These are certain metrics that we use in Six Sigma. You will learn more about these through the course of your study.

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10

12

14

16

18

20

0 20 40 60 80 100

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What is Six Sigma…as a Benchmark?

Source: Journal for Quality and Participation, Strategy and Planning Analysis

Yield

99.9997%

99.976%

99.4%

93%

65%

50%

PPMO

3.4

233

6,210

66,807

308,537

500,000

World Class Benchmarks

10% GAP

Industry Average

10% GAP

Non Competitive

COPQ

<10%

10-15%

15-20%

20-30%

30- 40%

>40%

Sigma

6

5

4

3

2

1

What does 20 - 40% of Sales represent to your Organization?

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What is Six Sigma…as a Philosophy?

Honeywell: Six Sigma refers to our overall strategy to improve growth and productivity as well as a measurement of quality. As a strategy, Six Sigma is a way for us to achieve performance breakthroughs. It applies to every function in our company, not just those on the factory floor. That means Marketing, Finance, Product Development, Business Services, Engineering, and all the other functions in our businesses are included.

Lockheed Martin: We’ve just begun to scratch the surface with the cost-saving initiative called Six Sigma and already we’ve generated $64 million in savings with just the first 40 projects. Six Sigma uses data gathering and statistical analysis to pinpoint sources of error in the organization or products and determines precise ways to reduce the error.

General Electric: First, what it is not. It is not a secret society, a slogan or a cliché. Six Sigma is a highly disciplined processthat helps us focus on developing and delivering near-perfect products and services. The central idea behind Six Sigma is that if you can measure how many "defects" you have in a process, you can systematically figure out how to eliminate them and get as close to "zero defects" as possible. Six Sigma has changed the DNA of GE — it is now the way we work — in everything we do and in every product we design.

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Conventional Strategy

Conventional definitions of quality focused on conformance tostandards.  

Conventional strategy was to create a product or service that metcertain specifications. 

– Assumed that if products and services were of good quality, then their performance standards were correct. 

– Rework was required to ensure final quality.– Efforts were overlooked and unquantified (time, money, equipment usage, etc).

Requirementor

LSL

Requirementor

USL

Bad Bad

Target

Good

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Typical Business Process Projects 

• Increase Sales 

• Reduce Lab Cycle Time

• Reduce New Product Development Cycle Time

• Reduce Delivery Time and Delivery Time Variability (to Requested Date)

• Improve Technical Support Response Time and Deployment

• Reduce Purchase Order Cycle Time

• Improve the Pricing, Quotation, and New Business Development Processes

• Improve the Quality and Consistency of Services Provided

• Improve Response Time for Order Confirmation or Other Customer Service Tasks

• Reduce Recruiting Cycle Time

• Reduce Employee Turnover

• Improve ECN Cycle Time

• Improve the Product Sampling Process 

• Ongoing Optimization of the Distribution Network

• Reduce Workers Compensation Incidents

• Provide Customers With Better Information (Availability, Delivery Status, Etc.)

• Back Office Process Improvement – A/R, A/P, Customer Claims

• Improve Management of Price Increases and Contract Changes

• Assess and Improve Customer Satisfaction

• Optimize Distribution System and Transport Equipment Utilization

• Improve Customer or Dealer Network Processes

• Lower Costs of Processing Medical Benefits

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Problem Solving StrategyThe Problem Solving Methodology focuses on:

• Understanding the relationship between independent variables and the dependant variable.

• Identifying the vital few independent variables that effect the dependant variable.

• Optimizing the independent variables so as to control our dependant variable(s).

• Monitoring the optimized independent variable(s).

There are many examples to describe dependant and independent relationships.

• We describe this concept in terms of the equation:• This equation is also commonly referred to as a transfer function

Y=f (Xi)This simply states that Y is a function of the X’s.

In other words Y is dictated by the X’s.

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Which process variables (causes) have critical impact on the output (effect)?

Y=f (Xi)

Crusher Yield

Time to Close

If we are so good at the X’s why are we constantly testing and inspecting the Y?

= f ( )

= f ( )Xn

TrialBalance

CorrectAccountsApplied

Sub Accounts

Credit Memos

Entry Mistakes

FeedMaterial

TypeToolWear Lubricant, , , ,Speed

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Y=f(X) Exercise

Exercise: Consider establishing a Y = f(x) equation for a simple everyday activity such as producing a cup of espresso.  In this case our output or Y is espresso.

Espresso = f ( )X1 , , , ,X2 X3 X4 Xn

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Six Sigma Strategy

(X1)

(X7)

(X6)

(X5)(X3)

(X2)

(X4)

(X8)

(X10)

(X9)

We use a variety of Six Sigma tools to help separate the “vital few” variables effecting our Y from the “trivial many.”

Some processes contain many, many variables. However, our Y is not effected equally by all of them.

By focusing on the vital few we instantly gain leverage.

Archimedes said: “ Give me a lever big enough and fulcrum on which to place it, and I shall move the world.”

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Six Sigma Roles and Responsibilities

There are many roles and responsibilities for successful implementation of Six Sigma.

Eventually there should be a big base of support internal to the organization.

Yellow Belts

Green Belts

Black Belts

MBB • Executive Leadership• Champion/Process Owner• Master Black Belt• Black Belt• Green Belt• Yellow Belt

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Executive Leadership

• Makes decision to implement the Six Sigma initiative and develop accountability method

• Sets meaningful goals and objectives for the corporation

• Sets performance expectations for the corporation

• Ensures continuous improvement in the process

• Eliminates barriers

Not all Six Sigma deployments are driven from the top by executive leadership. The data is clear, however, that those deployments that are driven by executive

management are much more successful than those that aren’t.

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Champion

• Owns project selection, execution control, implementation and realization of gains

• Owns Project selection

• Obtains needed project resources and eliminates roadblocks

• Participates in all project reviews

• Asks good questions…

• One to three hours per week

Champions identify and select the most meaningful projects to work on, they provide guidance to the Six Sigma Belt and open the doors for the belts to apply the process improvement technologies.

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Master Black Belt

• Provide advice and counsel to Executive Staff

• Provide training and support– In class training 

– On site mentoring

• Develop sustainability for the business

• Facilitate cultural change

MBB should be well versed with all aspects of Six Sigma, from technical applications to Project Management. MBBs need to have the ability to influence change and motivate others.

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What Are the Roles of a Lean Six Sigma Black Belt?

Black Belts:• Are contributors from various disciplines

• Are Change Agents for the company

• Should stimulate management thinking by posing new ways of doing things

• Challenge conventional wisdom by demonstrating the successful application of new methodologies

• Carry a very high level of peer respect and are clearly seen as leaders

• Manage risks, help set direction, and lead the way to breakthrough improvement

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Black Belts “Attack” Variation

To increase a process performance, you have to decrease variation.

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Analyze

-Jack Welch, GE

“Customers do not experience the average or the specifications of a process, they experience the variation”

Center Process on TargetReduce Variation

Customer Target

Meet Customer Target and Specifications

Customer Target

Eliminate DefectsReduce Variation

Customer Target

Defects Defects

GOAL

USLLSL

LSLLSL USL USL

Center Process on TargetReduce Variation

Customer Target

Meet Customer Target and Specifications

Customer Target

Meet Customer Target and Specifications

Customer Target

Eliminate DefectsReduce Variation

Customer Target

Defects Defects

GOAL

USLLSL

LSLLSL USL USL

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Green Belt

• Well versed in the definition & measurement of critical processes– Creating Process Control Systems

• Typically works project in existing functional area

• Involved in identifying improvement opportunities

• Involved in continuous improvement efforts– Applying basic tools and PDCA

• Team members on DMAIC teams  – Supporting projects with process knowledge & data collection

Green Belts are practitioners of Six Sigma Methodology and typically work within their functional areas or support larger BB Projects

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Yellow Belt

• Provide support to Black Belts and Green Belts as needed

• May be team members on DMAIC teams– Supporting projects with process knowledge and data collection

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The Life of a Six Sigma Belt

Training as a Six Sigma Belt can be one of the most rewarding undertakings of your career, and one 

of the most difficult.• You can expect to:

– Hard work (becoming a Six Sigma Belt is not easy)

– Long hours of training

– Be a change agent for your organization 

– Work effectively as a team leader

– Prepare and present reports on progress

– Receive mentoring from your Master Black Belt

– Perform mentoring for your team members

– ACHIEVE RESULTS!

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Black & Green Belt Certification

To achieve certification, Belts must:

• Complete all course work:– Be familiar with tools and their application– Practice using tools in theoretical situations– Discuss how tools will apply to actual projects

• Demonstrate application of learning to training project:– Use the tools to effect a financially measurable and significant business impact 

through their projects– Show ability to use tools beyond the training environment

• Must complete two projects within one year from beginning of training

• Achieve results and make a difference

• Submit a final report which documents tool understanding and application as well as process changes and financial impact for each project

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Organizational Behaviors

All players in the Six Sigma process must be willing to step up and act according to the Six Sigma set of behaviors.

– Leadership by example: “walk the talk”

– Encourage and reward individual initiative

– Align incentive systems to support desired behaviors

– Eliminate functional barriers

– Embrace “systems” thinking

– Balance standardization with flexibility

Six Sigma‐ Process

• Six Sigma comes in many forms;– Projects

• Using a “process” to improve an existing process– DMAIC (Define, Measure, Analyze, Improve, Control)

• Using a “process” to create a new process– DMADV (Define, Measure, Analyze, Design, Validate)

– Management Philosophy• Outputs (Results) are a function of Inputs and processing• “Process” vs. Silo perspective• Fact based decision making (Rigor)• Belief in importance of Variation, Common and Special Causes

– Tool Application• The “process” a project uses is made up of tools that can be applied independently or as a “process”

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Six Sigma‐ Process

• Projects• Using a “process” to improve an existing process

– DMAIC (Define, Measure, Analyze, Improve, Control)

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AnalyzeMeasureDefine Improve ControlProject Selection

Project Selection• Two primary methods:

– Top DownProjects are linked to strategic plans or initiativesProjects are focused on “pain” areas as perceived by MgmtHigh level business metrics drive project selection

– Bottom UpProjects are identified through process owners and customersClear understanding of process dynamics reveal sources of “pain”

• Projects must have a quantifiable “Output” or result.– “Specific problem or Opportunity”

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Project Selection

Process vs. Silo

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Marketing Sales MFR Tech

Classical Organization

Process

Define• Identify and Document;

– Stakeholders                                    Create TEAM– Problem or Opportunity                Metrics– Scope and Goals                              Focus– Barriers                                             Champion– Link to Business Create Support

• Project has a “Charter” that documents and maintains team focus on these issues

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Define

A g e n t W e lc o m e s

G u e s t

P a y A c c e p te d

A g t. R Q S T S F o rm o f P a y

A g t S h o w s K e y P a c k e t to

G u e s t

A g t. C o n f irm s R a te /S ig n .

C u s to m e r G o e s to

R o o m

C u s to m e r L e a v e s

C u s to m e r W a lk s to

D e s k

A g e n t A g t. c o n firm s In fo

o n R e s e rv a tio n

B e ll S ta t io n A s s is t

S e a rc h e s fo r R o o m

G u e s t N e e d s L u g g a g e A s s its

A g e n t F in d s R e s e rv a t io n

A g e n t C re a te s R e s e rv a t io n

C u s to m e r G o e s to

R o o m

C u s to m e r L e a v e s

S I Process O C

Friendly

Response

Speed

CTQ

Voice of the Customer

Project Charter

Reduce cycle time and variability of Product

Six Sigma‐ Team

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Define

1 Project Leader- Expert in Tools, Process (Called a Black Belt)1 Process Owner- (Could be BB also)2-6 Cross Functional Team Members- Stakeholders

Core Team

1 Champion- Executive or person with business responsibility1 Mentor- Assist in project direction, provide advice and assistance (Called a Master Black Belt)

Support Team1 Green Belt- Assist project leader in utilization of project tools (could be Process Owner)1 (or more) Subject Matter Experts- Project specific, i.e. IT or Accounting

Optional Team Members

Measure

• Identify and gather data around;– Process Inputs     Identify Factors– Process Measures    Identify Factors– Voice of the Customer                        Evidence– Measurement Systems   Sources of Error– Process “view” Process Mapping

• Evidence collected through our data will identify sources of variation as well as defects and lead us to our solutions.

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Measure

0.00 0.01 0.02

0

10

20

30

40

Total Cy

Freq

uenc

y

Histogram of Total Cy, with Normal Curve

Sigma2 4 6

Process Baseline

Y

X Factor

X Factor

X Factor

7 06 05 04 03 02 01 00

0 .0 0 7 5

0 .0 0 5 0

0 .0 0 2 5

0 .0 0 0 0

O b s e rv a tio n N u m b e r

Indi

vidu

al V

alue

I C h a r t f o r T o ta l C y

1

X = 0 .0 0 1 4 0 5

3 .0 S L = 0 .0 0 3 8 8 2

- 3 .0 S L = -1 . 1 E - 0 3

Analyze

Y= f(x)An Output is a function of one or more Inputs or Processing Steps

• We use Statistics, and Data Visualization techniques to establish and test Hypothesis about the above statement. 

• Understanding the impact or relationship of variables (x’s) on a process outcome (Y) and how to positively influence them is the overall mission of the project.

• “Variation in a process is our greatest enemy”

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Analyze

3002001000

100806040200

B A D C E F

r=.7Cause B

B

A

r=.5Cause A

0.1130.1120.1110.1100.1090.1080.1070.1060.1050.104

10

5

0

Freq

uenc

y

Response Time

Process Analysis

Improve

• Hypothesis Tested                       Facts• Facts + Creativity = Solutions• Solutions must be Proven(Test Solutions)– Pilot

• One Factor (level) at a time

– Design of Experiments

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Improve

C u s t o m e r G o e s t o

R o o m

C u s t o m e r G o e s t o

R o o m

C u s t o m e r W a l k s I n Process Redesign

Choice 3

Choice 2

Choice 1

Solutions

Decision Matrix Criteria

Implementation

Act

iviti

es

Step RPN

Potential Problem Analysis

Improve

• Quantifiable Improvement

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Improve

Transactional Example: Lean Six Sigma Reduces Delivery Time and Time Variation

• Average Delivery Time Reduced from 14 Days to 2 Days, Variance from 2 Days to 4 Hours

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

0 2 4 6 8 10 12 14 16 18 20

Time

% D

istr

ibut

ion

Mean Delivery Time Reduced

Time Variation Reduced

Before Lean Six Sigma

After Lean Six Sigma

Control

• Sustain the Gains                 Control Plan

• Document and Error Proof

• Transfer and Replicate!

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Control

Sustainable Improvements

7 06 05 04 03 02 01 00

0 . 0 0 7 5

0 . 0 0 5 0

0 . 0 0 2 5

0 . 0 0 0 0

O b s e r v a tio n N u m b e r

Indi

vidu

al V

alue

I C h a r t f o r T o ta l C y

1

X = 0 . 0 0 1 4 0 5

3 . 0 S L = 0 .0 0 3 8 8 2

-3 .0 S L = -1 .1 E - 0 3

Sigma2 4 6

Process Entitlement

DeploymentMap

Monitor Response

Customer Goes to Room

Customer Goes to Room

Customer Walks In

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Lean Overview

What is Lean?

• Lean production focuses on eliminating waste in processes (i.e. the waste of work in progress and finished good inventories) 

• Lean production is not about eliminating people 

• Lean production is about expanding capacity by reducing costs and shortening cycle times between order and ship date 

• Lean is about understanding what is important to the customer 

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The 5 Interdependent Lean Principles

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After Womack and Jones,Lean Thinking, BanishWaste and Create Wealth in Your Corporation, Simon andShuster, 1996

A Few Tools We Should USE

• Spaghetti Diagram

• Time Study

• Cause and Effect diagram

• Brainstorming

• 5 Why’s

• Error proofing (Poke‐Yoke)

• Identify and Eliminate Waste

• Process Flow/Map

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Definitions

• Value ‐ A capability provided to a customer at the right time at an appropriate price, as defined in each case by the customer. Features of the product or service, availability, cost and performance are dimensions of value.

• Waste ‐ Any activity that consumes resources but creates no value (waste).

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Benefits• Lean provides tangible benefits• Reduces costs not just selling price 

– Reduces delivery time, cycle time, set‐up time – Eliminates waste – Seeks continuous improvement 

• Improves quality • Improves customer ratings and perceptions • Increases overall customer satisfaction • Improves employee involvement, morale, and company culture 

• Helps “transform” manufacturers 

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Toyota Production System (TPS)

• Quality, Cost, Delivery– Shorten Production Flow by Eliminating Waste

• Just In Time– The Right Part at the Right Time in the Right Amount– Continuous Flow

• Built‐In Quality– Error Proofing – Poka Yoke– Visual Controls

• Operational Stability – Standardized Work – Robust Products & Processes – Total Productive Maintenance – Supplier Involvement 

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Lean Questions

• Focus on the customer– Who are the external customers?– Who is an internal customer?– What is the value to the customer?

• Eliminate the 8 wastes of production– What are the 8 wastes?– What causes waste?– How do we eliminate waste?

• Do more with less.– How can we increase value?– How to waste less resources?– How can we do both?

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Batch vs. Continuous Flow

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Batch Processing10 minutes

10 minutes10 minutes

Total Batch A processing time : 30 minutes

Continuous Flow Processing

Total Batch A processing time : 12 minutesOnly 3 minutes for 1st part

•Product requires three processes that take one minute each•Processing first batch in batches of 10 requires 30 minutes•Processing first “batch” one-at-a-time requires only 12 minutes

7 Forms of Waste

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Typesof

Waste

CORRECTION

WAITING

PROCESSING

MOTION

INVENTORYCONVEYANCE

OVERPRODUCTION

Repair orRework Any wasted motion

to pick up parts or stack parts. Also wasted walking

Wasted effort to transportmaterials, parts, or finished goods into or out of storage, or between processes.

Producing morethan is needed before it is needed

Maintaining excessinventory of raw mat’ls,parts in process, orfinished goods.

Doing more work thanis necessary

Any non-work timewaiting for tools, supplies, parts, etc..

Types of Waste

1. Overproduction ‐ Are we making more than the next process can use? Why?

2. Waiting ‐ Do we wait for any of the 5Ms:  Materials, information or decisions?  Manpower?  Machines? Methods? Measures? Why?

3. Unnecessary Motion ‐When and how far do we have to walk to do our job?  Is there much lifting, bending or reaching? Why?

4. Unnecessary Transportation ‐ How do we move materials through the area:  Lift trucks?  Racks? Carts? Why?

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Types of Waste Continued…

5. Over Processing ‐ Do we do anything to the WIP that the next process doesn’t want or has to undo?  Why?

6. Unnecessary Inventory ‐ Do we have more than 1 day of raw materials, work in process or finished goods? Why?

7. Defects or Correction  ‐ Do we have to inspect, repair or scrap incoming material?  Does the next process have to inspect, repair or scrap what we give to them?  Why? 

8. Unused Employee Creativity ‐What ideas do our people have to make this situation better?  What changes have been stated before but not heard?

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Barriers to Lean

• Implementing Lean Can Be Difficult Because it is Counterintuitive from a Traditional Paradigm:– Buying multiple small machines rather than one big machine that offers economies of scale. 

– Shutting down equipment when maximum inventory levels are reached rather than running flat out. 

– Using standards to continuously improve.

• There is no step‐by‐step cook book – There are some basic steps but the how‐to varies from organization to organization 

– Requires an assessment of the company in order to map out the strategy 

• Company culture plays a big part in the how‐to54

Progress Toward Lean• Smaller lot sizes 

• Increased capacity / throughput 

• Higher inventory turns 

• More available floor space 

• Improved workplace organization 

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Progress Toward Lean• Improved quality : reduced scrap / re‐work 

• Reduced inventories : raw, WIP, FG 

• Reduced lead times 

• Greater gross margin 

• Improved participation & morale 

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Lean Is A Journey…

• …a Journey that never ends…

• Toyota estimates it is only 50% waste‐free

• Where can we begin?  Where can we improve?

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5S and Visual Control– What is 5S?– 5 Elements of 5S

• Sort• Straighten• Shine• Standardize• Sustain

– Why 5S?– Waste– Workplace observation– Visual Factory

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What is 5S?

• 5S is a method to improve and sustain workplace organization

• 5S represents 5 disciplines for maintaining a visual workplace(visual controls and information systems).

• These are foundational to continual improvement and a manufacturing strategy based on "Lean Manufacturing" (waste removing) concepts. Reduces clutter

• “A place for everything and everything in its place”

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After 5S

• Clear, shiny aisles

• Color‐coded areas

• No work in process

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Kaizen

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Kaizen was created in Japan following World War II. The word Kaizen comes from the Japanese words “Kai” meaning school and “Zen” meaning wisdom. The English translation is “continuous improvement”.

What is Kaizen?

• Kaizen (Ky’zen)

• “Kai” means “change”

• “zen” means “good” “or for the better”

• Gradual, orderly, and continuous improvement

• Ongoing improvement involving everyone

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Kaizen typically involves improvements made without spending much money, involving everyone from managers to entry level workers, and using much common sense.

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At Japanese companies, such as Toyota and Canon, 60 to 70 suggestions per employee, per year are written down,

shared and implemented.

Western philosophy can be summarized as, “if it ain’t broke, don’t fix it”. The Kaizen

philosophy is that everything, even it ain’tbroke, can be improved.

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Kaizen focuses on the principle of “concentration”, it focuses all resources towards a narrow and specific objective. The intensity and urgency overcomes the intellectual resistance to a new paradigm. People have little time to think of reasons

for delay. It forces solutions.

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The execution is dramatic. The results are significant, clear and quick. This generates

enthusiasm and satisfaction.

What is a Kaizen Event?

• Kaizen Event 

• A cross functional team who has total focus on a defined process to create radical improvements in a short period of time

• Dramatic improvements in productivity, quality, delivery, lead‐time, set‐up time, space utilization, work in process, workplace organization

• Typically three to five day event

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• Kaizen Event are based on the principles of the Toyota Production System (TPS).

• Parts of TPS that are used– Go and see to thoroughly understand the problem– Use of pull systems to level out flow of materials– Use visual control so no problems are hidden– The right process will produce the right results– Make decisions slowly by consensus, thoroughly considering all options

– Implement decisions RAPIDLY

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Fishbone Diagram

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CauseCategory

CauseCategory

Material

Man

Method

Machine

Effect/ProblemSummary

The 5 Why’s, Fault Tree Analysis

• Why

• Why

• Why

• Why

• Why

• Get to the “Root” cause!

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Ask why five times

5 Why’s

• Ask “Why” five times until you get to the true root cause of the issue at hand.

• Do not stop asking until you can come to the problem for which you can implement a sustainable corrective action.

• Do we have anyone with kids 2‐5 years old? 

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Example: The 5 Why’s, Fault Tree Analysis

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Engine Sputtersand/or Dies

Out of Gas Fuel FlowFailure

Fuel InjectorFailure

Son failedto fill tank

GaugeFailure

PoorCommunication Bad

Genes

CloggedJet

FaultyJet

BlockedFuel

IcedLines

Fuel PumpFailure

OR

OR OROR

AND

Poke‐Yoke

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Poka-yoke is a Japanese word meaning "fail-safe" or "mistake-proofing" — A poka-yoke device is any mechanism that either prevents a mistake from being made or makes the mistake obvious at a glance.

Example: A microwave oven cannot be started without the door being shut.

Example: The ignition key cannot be removed without the car being in park.

Contrast: Traditional vs. Lean

• Traditional– Functional layout

– Batch‐and‐queue

– Product routing

– Reduce setup frequency

• Lean– Process layout

– One‐piece‐flow

– Sequential routing

– Reduce setup duration

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Contrast: Traditional vs. Lean(cont.)

• Traditional

– Specialized workers

– Managed workers

– Arms and legs

– Attain stability through buffering

• Lean

– Flexible workers

– Empowered workers

– Intellectuals

– Attain stability through synchronized, reliable processes

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Contrast: Traditional vs. Lean(cont.)

• Traditional– Statistical quality control

– Schedule production, push

– Make‐to‐forecast

– EOQ, Inventory models

• Lean– Quality at the source

– Authorize production, pull

– Make‐to‐order

– Frequent, small‐lot, sequenced delivery

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Lean & Six Sigma Synergy

Lean & Six Sigma

• The most powerful application of Lean includes Six Sigma

• The Most Powerful application of Six Sigma includes Lean & Lean Concepts

• The challenge is to know when to apply the appropriate tools from each toolbox to gain the maximum result in the minimum time.

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Synergy Between Six Sigma and Lean

• Six Sigma Strengths– Attacks Variation

– Driven by Voice of the Customer

– Provides Clear “Roadmap”

– “Rigor” vets answers

– Fact based decisions

– Cross functional teams

– Quantifiable Improvements (Measures)

– Considers entire “systems” or processes

• Six Sigma Weakness– Long cycle times for projects

– Data intensive

– Resource intensive

– May create “analysis paralysis”

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Synergy Between Six Sigma and Lean

• Lean Strengths– Attacks Waste

– Centers on “Flow”

– Short project cycle time

– “Hands On”

– More “doing” than analyzing

– Does not require extensive training to be effective

• Lean Weakness– Solutions may be “sub‐

optimized”

– Solutions may not be vetted or proven

– Solutions can be incremental

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Lean Compliments Six Sigma

• Six Sigma Strengths– Attacks Variation

– Considers entire “systems” or processes

– Driven by Voice of the Customer

– Provides Clear “Roadmap”

– “Rigor” vets answers

– Fact based decisions

– Cross functional teams

– Quantifiable Improvements (Measures)

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• Lean Weakness– Solutions may be “sub-

optimized”– Solutions may not be vetted

or proven– Solutions can be incremental

Lean Compliments Six Sigma

• Lean Strengths– Attacks Waste

– Centers on “Flow”

– Short project cycle time

– “Hands On”

– More “doing” than analyzing

– Does not require extensive training to be effective

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• Six Sigma Weakness– Long cycle times for projects– Data intensive– Resource intensive– May create “analysis

paralysis”

“If we want to make significant, quantum change, we need to work on our basic paradigms.”

– Stephen Covey, The 7 Habits of Highly Successful People, 1990

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