Lean Six Sigma

1. Lean Six Sigma Overview

2. Lean Six Sigma Overview Definition Six Sigma is a fact-based, data-driven philosophy of quality improvement that values defect prevention over defect detection (ASQ). Lean The ultimate goal of Lean is to provide perfect value to the customer through a perfect value creation process that has zero waste. The core idea is to maximize customer value while minimizing waste. Simply, lean means creating more value for customers with fewer resources.

3. Lean Six Sigma Overview Lean Efficiency Improvement

4. Lean Six Sigma Overview Six Sigma Quality and Efficiency Improvement

5. Six Sigma Lean Lean Six Sigma Combining Lean and Six Sigma is Best in Class

6. Lean Six Sigma Overview Six Sigma Business Focused Customer Focused Process Focused

7. Views of Lean Six Sigma Business Strategy Benchmark Goal Six Sigma Methodology Philosophy Process Measurement Tools Project

8. Lean Six Sigma Overview Six Sigma as a Business Strategy links the outputs of a company processes to customers requirements. Customer satisfaction can be increased by reducing waste and process variation. This can result in improving operating margins.

9. Lean Six Sigma Overview Benchmark The Sigma value can be used to Benchmark performance.

10. Lean Six Sigma Overview Goal The goal of Six Sigma is have the highest level of performance possible. • At the 6 Sigma level there is 3.4 DPMO • 99.9997 % defect free product or service

11. Lean Six Sigma Overview 6 Sigma 3-5 Sigma 3 Sigma 1-2 Sigma

12. Lean Six Sigma Overview Methodology Six Sigma as a Methodology, provides a structured, step by step process of assessing and resolving variation in processes which is accomplished completing the following stages: • Define • Measure • Analyze • Improve • Control This process focuses on cause and effect, using numerous analytical problem solving tools, supported by a management structure.

13. Lean Six Sigma Overview Define “Identify customer requirements” Control “Monitor new processes” Measure “Measure current performance” DMAIC Analyze “Identify root causes for performance defects” Improve “Identify and implement solutions”

14. DMAIC PHASES Champion/ Process Owner Identify Problem Area

15. DMAIC PHASES Determine Appropriate Project Focus Define Estimate COPQ Charter Project

16. DMAIC PHASES Stability, Capability, and Measurement Systems Measure Identify and Prioritize All X’s

17. DMAIC PHASES Analyze Prove/Disprove Impact X’s Have on the problem

18. DMAIC PHASES Identify, Prioritize, Select Solutions to Control or Eliminate X’s causing Problems Improve Implement Solutions to control or Eliminate X’s Causing Problems

19. DMAIC PHASES Implement Control Plan to control or Eliminate X’s causing Problems Control Verify Financial Impact

20. Lean Six Sigma Overview Philosophy Six Sigma as a Philosophy is based on the premise that a process will yield a greater return if the variation in process output is reduced to stay within limits defined by the customer. The philosophy is one of continuous improvement, using data and various algorithms to reduce process variation Meeting the customer expectations will realize gain in competitive advantage. There is a positive correlation between Six Sigma Program & Process Performance.

21. Lean Six Sigma Overview Process measurement As a Process Measurement system, Six Sigma uses data to analyze process performance and find Root Causes of defects. The following calculations are use when assessing defects and root causes: • Defects • Defects per unit (DPU) • Parts per million (PPM) • Defects per million opportunities (DPMO) • Rolled Throughput Yield (RTY) • First Time Yield (FTY) • Sigma Value

22. Lean Six Sigma Overview Six Sigma as a Project Practical Problem Statistical Solution Results Control Plan Six Sigma Project Statistical Problem Practical Solution

23. Lean Six Sigma Overview Six Sigma as a Project Practical Problem Chronic problem impacting on the success of a process. Six Sigma Project Six Sigma is used to quantify the problem and output expectation. Statistical Problem The quantified problem is evaluated with facts and data analysis

24. Lean Six Sigma Overview Six Sigma as a Project Statistical Solution Results Data driven solution is found Measurable results with quantifiable financial or strategic value. Control Plan Method is developed for long- term sustainability of the solution Practical Solution Develop ready to implement Practical solution

25. Lean Six Sigma Overview Six Sigma uses specific tools to solve business problems. These tools are used to map processes, select projects, analyzed data and identify solutions. These tools include but are not limited to: • Pareto Chart • Fishbone diagram • Prioritization Matrix • Histogram • Control Chart • Failure Mode and Effect Analysis • Root Cause Analysis

26. Lean Six Sigma Overview Process: Sequence of interdependent and linked procedures which, at every stage, consume one or more resources to convert inputs from suppliers into an outputs of value to the customer. Output Input Process Action

27. Lean Six Sigma Overview Work Process Work Process Output Input Process

28. Lean Six Sigma Overview Improvement Process Improvement Process Input Process Output

29. Lean Six Sigma Overview Every process has a dependent variable Y that can be influenced by independent variables Xs. Understanding the relationship between the Xs and Y is the goal of Lean Six Sigma. When this relationship is understood, manipulation of the Xs can be carried out in such a manner so that Y remains within the appropriate range, meeting customer requirements. Y = f(X¹, X², X³ ………….Xⁿ)

30. Lean Six Sigma Overview Y = f(X¹, X², X³ ………….Xⁿ) Y X

31. Lean Six Sigma Overview Variation • Lean sigma focuses on variation • All repetitive activities have a certain amount of variation • Variation is the “Voice of the Process” • Input, Process and Output measures have variation.

32. Lean Six Sigma Overview Critical to Quality (CTQ) A Defects: Service Unacceptable to customer Product or Service Output VARIATION

33. Lean Six Sigma Overview Sigma σ Sigma is a Greek letter that is used to represent a statistical unit of measurement to define the standard deviation of a population. It measures the variability or spread of the data. It indicates how much of the data falls within the customer’s requirement – the higher the sigma, the more the process outputs, products and services, meet customers’ requirement. The higher the process sigma, the fewer the defects.

34. Lean Six Sigma Overview Critical to Quality (CTQ) B A Defects: Service Unacceptable to customer Product or Service Output VARIATION

35. Lean Six Sigma Overview

36. Lean Six Sigma Roles Champions Projects Master Black Belt Process Owners & Project Sponsors Project Team Members and SMEs Black Belts And Green Belts

37. Lean Six Sigma Overview Champions/Executive Leadership • Monitors the external and internal factors affecting the business • Defines business strategy • Communicates the plan for business success • Champions Lean Six Sigma Vision • Involve in establishing improvement priorities and targets. • Provides and aligns resources • Establish accountability for results • Role modeling appropriate behaviors, change leader • Integrates Lean Six Sigma into business direction and plan • Markets Lean Six Sigma program and results.

38. Lean Six Sigma Overview Process Owner • Assist in identifying potential Lean Sigma projects • Approves and supports project • Provides resources to serve as team members and subject matter experts on projects • Approves changes in project scope and removes barriers • Owns the solution delivered by the project team • Responsible for supporting implementation of improvement actions

39. Lean Six Sigma Overview Project Sponsors • Provides and aligns resources (Black Belts/Green Belts, Team Members), ensure cross-functional collaboration • Establishes improvement priorities, targets and accountability for results. • Role modeling appropriate behaviors, change leader. • Ensures project is aligned with department and strategic objectives • Approves all phases of Lean Six Sigma projects • Ensures project deliverables are being maintained and project is on time and on budget. • Approves changes in scope of the projects, removes barriers • Market Lean Six Sigma program and results

40. Lean Six Sigma Overview Master Black Belt • Part time or full-time position • Provides expertise on Lean Six Sigma tools and techniques, including project management and change management. • Strategic direction to leadership and project team • Identifies projects critical to achieving business goals • Is ultimately accountable for project success • Serves as main champion during change implementation • Identifies, trains, coaches and evaluates Black Belts/Green Belts and Team Members • Ensures cross-functional & cross-team collaboration • Acts as Lean Six Sigma advisor to Champions, Sponsors and Process Owners

41. Lean Six Sigma Overview Black Belt • Full-time position • Provides direction and leadership for project team, manages inter-project communications • Delivers results through application of lean Six Sigma methodologies • Provides skill training when needed • Accountable for reporting project progress and coordinating communication to project stakeholders • Maintains all documentation from project, prepares and submits deliverables • Manages implementation of solutions, ensures transition of improved process to the business • Acts as a change catalyst

42. Lean Six Sigma Overview Green Belt • Part-time position • Provides direction and leadership for project team, manages inter-project communications • Delivers results through application of lean Six Sigma methodologies • Provides skill training when needed • Accountable for reporting project progress and coordinating communication to project stakeholders • Maintains all documentation from project, prepares and submits deliverables • Manages implementation of solutions, ensures transition of improved process to the business • Acts as a change catalyst

43. Lean Six Sigma Overview Project Team Members • Part-time position • Team player in application of Lean Six Sigma methodologies • Provides expertise and feedback to the project team • Is responsible for tasks within the team action plan • Delivers regular updates to team on status of action steps • Acts as a change catalyst.

44. Lean Six Sigma Overview Subject Matter Experts • As-needed position • Provides subject matter expertise and feedback to the project team • Acts as a change catalyst.

45. Lean Six Sigma Overview Financial Analyst • Part-time role • Responsible for providing financial support to LSS deployment • Provides standard, consistent guidelines for project valuation • Provides financial savings forecast for potential projects’ • Estimate project savings during the project execution • Track/validate actual project savings after project closure.

46. Phase Define Measure Analyze Improve Control Champion/Sponsor Process Owner Black Belt/Green belt Project Team Master Blackbelt

47. Project Status Potential Active Defined Realization Champion/Sponsor Process Owner Black Belt/Green belt Project Team Master Blackbelt

48. Lean Six Sigma Overview Define Phase Deliverables • Project charter • Project Management • Process Definition • Stakeholder Management • Voice of Customer