PUTTINGLEAN SIXSIGMATO WORK

LEAN SIXSIGMA FROMSGS IMPROVESTHE QUALITYOF YOURPRODUCTSAND SERVICESANDCUTSCOSTS.

Lean Six Sigma from SGS is a tool that works.Used to leverage your investment in standards,such as ISO 9001:2000 or TS 16949:2002Lean Six Sigma turns your quality managementinvestment into a business-building tool.

WHAT IS LEAN SIX SIGMA?Lean Six Sigma from SGS is a comprehensive framework and methodology forcontinuous improvement based on the Six Sigma approach. It complements andimproves upon the well-recognized ISO 9001, ISO 9004, and TS 16949 standards.Lean Six Sigma quantifies the ‘Cost of Poor Quality’ and can provide a specific,quantifiable return on investment.

HOW IT WORKS?Lean Six Sigma from SGS makes your Quality Management System (QMS)more dynamic. It integrates a more rigorous method of addressing continuousimprovement and incorporating important financial factors directly linking QMSto business performance. A Lean Six Sigma-based continuous improvement programresults in a certification which imbeds the defined Lean Six Sigma continuousimprovement process within the existing third-party Quality Management Systemscertification framework to ensure it is maintained and driven forward.

SPECIFIC BENEFITS OF LEAN SIX SIGMA

INTERNAL

Ensures that critical customer requirements and the voice of the business aresimultaneously reviewed and met

Ensures business and process/product improvement are within the samedefined framework

Drives continuous improvement at every level of the company through the thirdparty certification scheme > 3rd party independent audits

Integrated with existing certification hence one audit covers both TS 16949 and/orISO 9001:2000 and Lean Six Sigma quality system

Links your Quality Management System directly to financial business performance

EXTERNAL

Enhances your ISO 9001 and TS 16949 certifications by differentiating you fromother certified companies

Gives credibility to your Quality Management System by continuously improvingproducts and processes

Signifies your ability to be able to deliver what you promise and to sustainthe benefits

A MANAGEMENT APPROACH

ORGANISATIONS THAT GET THE MOST FROM LEAN SIX SIGMA HAVE

Business managed around its core processes

Decisions based upon fact and data

Performance measured from the customer point of view

The gap between current performance & customer expectations clearly understoodand proactively managed

Quality integrated into daily work

Improvements made in a structured, methodical manner

Benefits of all improvement activities consistently delivered and realisedVV

VV

VV

VV

VV

VV

VV

V

CREATE THE ENVIRONMENT FOR SUCCESS

SGS can help you assess to what degree your QMS accommodates the specificpractices and critical success factors required for successful Lean Six Sigma. Armedwith the analysis of the strengths and weaknesses of your QMS, you will have a clearview of how far you need to go and the obstacles that you need to overcome.

FOCUSING ON WHAT’S IMPORTANT

Balancing the priority between business-as-usual and strategic improvementoften creates internal tension and conflict that in turn can jeopardise the successof any quality improvement programme. Our project selection programme helpsyou identify and prioritise the opportunities that improve your day-to-day operationswhile simultaneously closing strategic gaps and providing a logical frameworkfor improvement.

PUTTINGLEAN SIXSIGMA TO WORK

BUSINESS DRIVERS

Improvement objectivesdefined with customerSpecific business targetsGlobal business strategy

SUPPORT TOOLS

ARMING PEOPLE TO MAKE IT HAPPEN - BLACK BELT TRAINING

Once you have identified projects to run, the next step is arming the right people,with the right tools to deliver against your improvement goals. That’s why training andsupport is indispensable. When it comes to making it happen, we offer stand-alonetraining from Lean Six Sigma awareness through to a full Black Belt syllabus. Or forthose of you looking for the total package, we offer a full deployment support thatcovers your entire organisation - from the CEO to the shop floor.

CERTIFICATION – RECOGNISING YOUR PROGRESS

Quality Management and Six Sigma is a powerful combination. Through certification inkey milestones, SGS can help you to get your progress recognised both internally andexternally. We can audit and certify the following areas:

Creating the environment - alignment of your Quality Management System withLean Six Sigma principles

Your Lean Six Sigma deployment - Project Selection, Resources & Capability,Programme Governance

Your Lean Six Sigma resultsVV

V

TS 1

6949

requirem

ents

Core

tools

SPC, F

MEA

,

APQ

P, P

PAP

OEM

spec

ific

requirem

ents

ISO

900

1:20

00

CONTROL

IMPR

OVE

ANALYSE M

EASUREDEFIN

E

THE DMAIC METHODOLOGY DMAIC (Duh-May-Ick) is a data-driven quality strategy for improving processes, and isan integral part of Lean Six Sigma. Each step in the cyclical DMAIC Process is requiredto ensure the best possible results.

PURPOSETo establish the improvement opportunity and the business case for addressing it

To develop a project charter

To define and map the business process to be improved

To identify the customer and their Critical Customer Requirements (CCR’s)

CRITICAL CHECKPOINTS Project charter completed and agreed with sponsor and key stakeholders

Preliminary estimate of the project prize established

Completed and validated high-level process map

Customers identified and segmented as appropriate. Data gathered tovalidate customer requirements

KEY QUESTIONS

QUESTIONS FOR DEFINE PHASE TOLLGATE REVIEW:

How does project link to organisational strategy? Is this the highest priority projectat this moment?

What are the project objectives? Are objectives SMART and related to bottom-lineperformance and/or customer satisfaction?

What key output measures will the project impact?

What is the estimated Cost of Poor Quality? (COPQ)

Is the scope appropriate to project objectives?

Do we have the right team resources? Have the key stakeholders been identified?

Are roles and responsibilities agreed?

Is there a high level project plan with key milestones and deliverables established?

Is the Project Charter confirmed and signed off?

Has a project launch been conducted?VV

VV

VV

VV

VV

VV

VV

VV

VV

DEFIN E

DEFINE ELEMENT

PROJECT CHARTERING 5.4.1- Identify the business case • • - - Opportunity and goal statements • • • • 8.4, 8.5 (all) - Scoping improvement projects • - - Improvement resources, R&R • • • • 6.1 - Estimate COPQ • -

PROCESS MAPPING 0.2- Process definition • • • • 4.1a, 7.1b - Levels of process • • 4.1b- SIPOC model • • -

VOICE OF THE CUSTOMER 5.2- Identify types of customer • • • -- Understand customer needs • • • • 5.2, 7.2.1, 7.2.2 - Collecting customer input • • • • 7.2.3, 7.3.2 - Voice of the customer analysis • • • 8.2.1, 8.4a/b- Translation of VOC into CCR’s • 7.3.3- Prioritising customer requirements • • -

ISO

9001

REQ

UIRE

MEN

TIS

O 90

01 R

ELAT

ED

ISO

9001

BES

T PR

ACTI

CE

ISO

9001

+ LE

AN S

IX S

IGM

A

EXAM

PLES

OF

REFE

REN

CETO

ISO

9001

/ISO

9004

PURPOSE To establish the baseline performance for the current process

To develop the measures necessary to enable you to identify the root causes ofvariation to improve the performance of the process

To refine the improvement target for the project

CRITICAL CHECKPOINTS Agreement about what should be the project primary and secondary metrics andhow they are to be collected

Definition of critical customer requirements in terms of defects and defect opportunities

Preliminary identification of potential root causes, and definition of the datarequired to validate them

Baseline measures of process capability and performance

Revised estimate of Cost of Poor Quality

KEY QUESTIONS

QUESTIONS FOR MEASURE PHASE TOLLGATE REVIEW:

What is the project primary metric (Big Y)? What are the secondary metrics?

How do the project metrics link to Critical Customer Requirements and keybusiness metrics?

Has the current performance baseline for these metrics been determined?

What potential X’s have been identified? What data has been collected for analysis?

Are the operational definitions appropriate? Are your measurements accurate andrepresentative? What proportion of observed variation is due to your measurementsystem? How did you ensure measurement quality?

What is current process Sigma performance? What are definitions of defect, unitand opportunity in the calculation? What data distribution was used?

Are the process boundaries still appropriate (project scope)?

Are the project opportunity and objective still valid? Will it be necessary to refine them?What is your revised estimate of COPQ? How much of this should the project address?

VV

VV

VV

VV

VV

VV

VV

VV

MEASU RE

MEASURE ELEMENT

MEASURMENT 4.1e

- Determining output measures * • • • 8.1a, 8.2.4, 8.4b- Determining process measures * • • • 8.2.3, 8.4c- Determining input measures * • • • 7.4, 8.4d**

DATA COLLECTION- Data collection planning • • • 8.4- Sampling • • • 8.1- Measurement systems analysis *** • • • 7.6***

UNDERSTANDING VARIATION- Identify common & special cause • -- Charting variation • -

BASELINE CAPABILITY- Assessing process capability • • 8.2.3, 8.4b (implied)- Calculating baseline Sigma • -- Lean metrics • -

* The ISO 9001 Standard refers to measurement for monitoring purposes but not for validating and baselining process performance

** The ISO 9001 Standard only refers to input measures relating to purchased goods and services

** The ISO 9001 Standard only requires control and calibration of monitoring and measuring devices

ISO

9001

REQ

UIRE

MEN

TIS

O 90

01 R

ELAT

ED

ISO

9001

BES

T PR

ACTI

CE

ISO

9001

+ LE

AN S

IX S

IGM

A

EXAM

PLES

OF

REFE

REN

CETO

ISO

9001

/ISO

9004

PURPOSE To identify and validate the key sources of variation

To quantify the improvement objective

CRITICAL CHECKPOINTS Identify and prioritise possible sources of variation in the process

Define the logical path that shows steps and tools used to narrow the list

Statistically validate the extent to which the identified root causes influencethe output

Develop a refined opportunity statement reflecting the increased understandingof the problem gained from the analysis

Validate the COPQ calculation (estimate the opportunity in financial terms)and finalise the project charter opportunity statement

KEY QUESTIONS

QUESTIONS FOR ANALYSE PHASE TOLLGATE REVIEW:

What factors drive variation in the process? How was data stratified?

What do detailed process maps indicate? What are key leverage points?Which are non-value added steps? How long does the process take?

How was cause and effect analysis conducted? How were key factors identified?How were potential causes validated?

What key learnings have been extracted from the data?

How much of the observed output variation can you now explain?

How much non-value added activity exists? What is the financial opportunity ofaddressing it?

What is the total Cost of Poor Quality?

Have targets for critical customer requirement metrics been established?

Is it necessary to refine the project objective and/or scope?VV

VV

VV

VV

VV

VV

VV

VV

ANALYSE

ANALYSE ELEMENT

IDENTIFY AND FORMULATEROOT CAUSES- Potential root cause identification ISO 9004 • • 8.1, 8.4 (ISO 9004)- Stratification and segmentation ISO 9004 • • 8.4 (ISO 9004)- Root cause analysis tools ISO 9004 • • 8.1, 8.4 (ISO 9004)

QUANTIFY AND VERIFY ROOT CAUSES 0.2

- Statistical validation of root causes ISO 9004 • • 8.4, 8.5.2 (ISO 9004)

FINANCIALLY QUANTIFYTHE OPPORTUNITY- Finalise the COPQ • -

ISO

9001

REQ

UIRE

MEN

T

ISO

9001

REL

ATED

ISO

9001

BES

T PR

ACTI

CE

ISO

9001

+ LE

AN S

IX S

IGM

A

EXAM

PLES

OF

REFE

REN

CETO

ISO

9001

/ISO

9004

PURPOSE To generate, develop and test potential solutions

To select the most appropriate solution(s) to meet the project objectives

To identify and develop the implementation plan for the solutions

CRITICAL CHECKPOINTS Root causes of variation to be addressed/clarified

Long list of potential solutions developed

List of solutions narrowed and screened against selection criteria

Potential solution developed and validated

Solution piloted on a small scale

Full implementation plan developed including project, change management andcommunications planning

Contingency plans developed

KEY QUESTIONS (PRE-PILOT)

QUESTIONS FOR IMPROVE PHASE TOLLGATE REVIEW

What is the future state design for the process?

How were critical customer requirements considered in developing high-level design,targets, and specification limits?

How were solution ideas generated and selected?

How does the new design address the root causes identified in Analyse?

Has appropriate technology been identified and incorporated into newhigh-level design?

How were customers, key managers and staff stakeholders involved in designevaluation? How broad is buy-in for the design?

What assumptions have been made in the cost-benefit analysis?When will results be seen?

VV

VV

VV

VV

VV

VV

VV

VV

V

IM

PRO VEKEY QUESTIONS (POST-PILOT)

QUESTIONS FOR IMPROVE PHASE TOLLGATE REVIEW

Has a high-level implementation plan been developed for the solutions?Who owns the implementation?

Has piloting been conducted? How was the pilot evaluated and how representativewas it?

What potential problems are envisaged with the implementation plan?What contingency plans exist?

Do you have the correct resources for implementation to meet the target date?

What are the costs of the implementation (one off and ongoing)?

How will cultural change be managed? Commitment mobilised? OrganisationStructure? Measurements? Communication? etc.

What impact will the solution have on non-value added activity and COPQ?

When will the benefits of the improvement be realised?VV

VV

VV

VV

IMPROVE ELEMENT

GENERATE SOLUTIONS 4.1c

- Generate multiple potential solutions • • • 8.5.1, 8.5.2, 8.5.3

SELECT SOLUTIONS- Screen solutions against key criteria • • -- Validate solutions prior to implementing • • *- Cost benefit analysis • • -

IMPLEMENT SOLUTIONS 4.1f

- Implementation planning • • • 8.5.1- Change management • • -- Potential problem analysis • • • 8.5.3

* The ISO 9001 Standard refers validating corrective and preventative actions post-implementation

ISO

9001

REQ

UIRE

MEN

TIS

O 90

01 R

ELAT

ED

ISO

9001

BES

T PR

ACTI

CE

ISO

9001

+ LE

AN S

IX S

IGM

A

EXAM

PLES

OF

REFE

REN

CETO

ISO

9001

/ISO

9004

PURPOSE To standardise the process and ensure that the improvement gainsare realised, maintained and replicated

CRITICAL CHECKPOINTS The new process is documented and integrated into standard qualityoperating procedures

The process is standardised; variation between individuals and operating units is removed

An ongoing process monitoring plan has been developed, documentedand implemented

The impact of the implemented solution has been measured and compared againstthe baseline measurements

The project benefits have been independently validated

Opportunities for replication across the organisation or with the group havebeen identified

KEY QUESTIONS

QUESTIONS FOR CONTROL PHASE TOLLGATE REVIEW:

What control plans have been implemented?Have operational procedures been developed?

What is the new process Sigma? Does this meet target? Is it sustainable?

Are there metrics now being used to manage the business?Are they embedded in reporting structures?

How will changes in customer requirements be identified?

Is the improved process stable?

How are control charts being used? Is there a control plan when out of control?

Is accountability for maintaining and improving process performance established?

Are there opportunities to share best practices or to replicate the solutions?

What went well/could have gone better? (Project pluses/deltas)VV

VV

VV

VV

VV

VV

VV

VV

CONTR OL

CONTROL ELEMENT

MONITORING/RESPONSE PLAN 4.1e

- Determining what to measure • • • • 8.1, 8.2.3, 8.2.4- Standard definitions for control metrics • • -- Statistical process control • • -- Process control plan • • • 8.5.2, 8.5.3- Contingency planning • • -

STANDARDISING/DOCUMENTING 4.1d

- Documentation/written procedures • • • • 4.2- Training • • • • 6.2- Mistake proofing • • • • 8.5.3

BENEFITS VALIDATION 4.1e, 5.6

- Verification of quality improvement • • • • 8.5.2f, 8.5.3f, 8.5.1- Verification of financial impact • • -

PROJECT CLOSURE- Identification of replication

opportunities • • -- Knowledge capture • • -- Project evaluation • • • 8.5.1, 8.5.2f, 8.5.3f- Celebrate success • • -

ISO

9001

REQ

UIRE

MEN

TIS

O 90

01 R

ELAT

ED

ISO

9001

BES

T PR

ACTI

CE

ISO

9001

+ LE

AN S

IX S

IGM

A

EXAM

PLES

OF

REFE

REN

CETO

ISO

9001

/ISO

9004

A LEAN SIX SIGMA-BASED CONTINUOUSIMPROVEMENTPROGRAM RESULTSIN A CERTIFICATIONWHICH IMBEDSTHE IMPROVEMENTPROCESS WITHINTHE CERTIFICATIONFRAMEWORK TOENSURE IT ISMAINTAINED ANDDRIVEN FORWARD.

SGS LEAN SIX SIGMA FOR ISO 9001 AND TS 16949

Continuous organisational improvementfor competitive advantage

Customerand market

requirements

Managerialstrategy

Organisationalcapability

Customersatisfactionand marketpenetration

Strategydelivery

Organisationalefficiency andeffectiveness

Identify keyrequirements

Product/servicedelivery

Measureand understand

variation torequirements

Product/servicerealisationprocesses

Capability enhanced

Benef

its re

alise

d,

valid

ated

and re

plicat

edSelect and

executeimprovementprojects that

addressvariation to

requirements

SGS Lean Six Sigma is a defined set of requirements which incorporate ISO 9001and TS 16949 and which contain a complete framework for business continuousimprovement. Lean Six Sigma is a proactive approach and it integrates the Voiceof the Business (VOB) and the Voice of the Customer (VOC) in the center of theimprovement target.

Global businessstrategy

Performancetargets

Improvementgoals

Potentialimprovementprojects

SGS LEAN SIX SIGMA IMPROVEMENT APPROACH

Performance gapsExternal quality

Potentialprojects

Businesscase & Cost ofPoorQuality

Efficiency gapsExternal quality

SIGsGlobal strategy

Businecase&COPQ

Projectselection

Selectmethods

Run LSSproject

Integratewith ISO 9001 &TS 16949 QMS

CertificationLean SixSigma training& projects

METHODSDMAICDFSSJust Do ItLeanKaizen

Prioritisedprojects

Lean Six Sigma continuous improvement which addresses the Critical CustomerRequirements and the link between continuous improvement and the businessprocesses, builds upon the present QMS and leverages the investment made inestablishing the present system and in the audit and certification process. Themethod ensures that organisations strategy and the gaps in quality performance andefficiency defines the priority in selecting the right continuous improvement projects.Certification of results is done within the existing QMS certification framework.

ess

TO FIND OUT MORE VISIT WWW.LEANSIXSIGMA.SGS.COM

WWW.LEANSIXSIGMA.SGS.COM