Copy of Lean Six Sigma

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    1

    Principles of Lean Six Sigma

    Overview of LeanManufacturing and Six Sigma

    Methodologies

    A

    Lean EnterprisePresented by:

    Oscar Longo

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    Introduction

    Todays manufacturing and business

    environments are reaching a point that

    competition for survival and market share isan obligation.

    Tracking the global economy will show that

    being good is not enough, therefore each

    organization really strive for excellence ifwant to stay in the market.

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    Business Facts

    Every single organization is

    looking for one singleoutcome

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    Business Facts

    PROFIT

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    Business Facts

    PROFIT is not a single concept but comeswith many important implications:

    P- Process excellence

    R- Resources Management

    O- Oriented to a Goal F- Financially Strong

    I- Innovative to stay ahead of competition

    T- Timely deployment of strategies

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    Business Facts

    The most traditional

    definition ofPROFIT..

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    Business Facts

    $$$LETS MAKE

    MONEY

    $$$BUT DO IT

    RIGHT

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    How we make PROFIT

    In order to be a leader, most companies arerealizing that traditional management,

    manufacturing processes, and other historic

    approaches, are not enough.

    More effective methods are needed:

    Six Sigma

    Lean Manufacturing

    With origins in the Toyota ProductionSystem, is a way of living in the business

    environment.

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    History of Manufacturing

    Made to customer spec

    Single piece mfg each product unique

    Variable quality

    Little inventory

    High cost made for the rich

    CraftCraftCraftCraft

    Interchangeable parts Whitney

    Division of labor Taylor

    Assembly lines Ford

    Labor strife

    Mass ProductionMass ProductionMass ProductionMass Production

    High variety

    Small batch sizes

    PPM quality

    Engaged workforce

    The Lean EnterpriseThe Lean EnterpriseThe Lean EnterpriseThe Lean Enterprise

    http://en.wikipedia.org/wiki/File:Ford_assembly_line_-_1913.jpghttp://en.wikipedia.org/wiki/File:Bamun_artisan.jpg
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    Recognize a need to change and beable to do PROFIT.

    Process Analysis is the foundationProcess Analysis is the foundationtoward achieving Process Excellence.toward achieving Process Excellence.

    How we make PROFIT

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    We need to Change to make PROFIT?We need to Change to make PROFIT?

    A need for change is usually characterized by:

    Quality is a Q.A. department responsibility

    Large production lots

    Large centralized stores

    Customer dissatisfaction

    Enormous part and process variation

    Set-up measured in hours instead of minutes

    Order entry times measured other than in minutes

    Product margins eroded by increasing operating costs

    Ever-increasing competitive pressures

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    Why Change ?Why Change ?

    Lean Linking

    is

    Forward Thinking !

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    Why Change ?Why Change ?

    LeanLean

    LinkingLinking

    is is Forward Thinking !Forward Thinking !

    Do not become the dinosaur ofDo not become the dinosaur of

    your industryyour industry

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    Evolutionary vs. Revolutionary ChangeEvolutionary vs. Revolutionary Change

    Having a forward looking perspective on continuous

    improvement is a requirement of the competitive

    marketplace and is the first step in becoming world-

    class.

    DO NOT set incremental improvement goals over previous

    performance, rather -

    Think of where we need to be:

    Continually declining costs

    Zero defects

    Minimal inventories

    Fully satisfied customers

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    What can we expect with Lean Thinking?What can we expect with Lean Thinking?

    (over 5 years)(over 5 years)

    Defects reduced by 20% per yearDelivery Lead Times reduced by more than 75%

    On Time Delivery improved to 99+%

    Productivity (sales per employee) increases of15-25% per year

    Inventory (working capital) reductions of more than

    75%Return on Assets improvement of 100%+

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    Analyzing and Improving ProcessesAnalyzing and Improving Processes

    An integrated approach to utilizing Capital, Materials, andHuman resources to produce just what is needed, when it isneeded. In the amount needed with minimum Materials,Equipment, Labor and Space.

    A Lean DefinitionA Lean DefinitionA Lean DefinitionA Lean Definition

    Identify and eliminate waste(MUDA).

    Overriding PrincipleOverriding PrincipleOverriding PrincipleOverriding Principle

    Whats in a Name . . .Whats in a Name . . .Whats in a Name . . .Whats in a Name . . . Toyota Production System, J.I.T., Lean Manufacturing,

    Demand Flow Technology, Kaizen, is really Process Analysis !

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    How we make PROFIT - TPS

    B ildi Bl k f Th LB ildi Bl k f Th L

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    Building Blocks of The LeanBuilding Blocks of The Lean

    EnterpriseEnterprise

    Continuous Improvement

    Teamwork

    Rewards /Recognition

    Training

    B ildi Bl k f Th LB ildi Bl k f Th L

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    Continuous Improvement

    ValueStreamMapping

    Teamwork

    Rewards /Recognition

    Training

    Building Blocks of The LeanBuilding Blocks of The Lean

    EnterpriseEnterprise

    B ildi Bl k f Th LB ildi Bl k f Th L

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    QuickChangeover

    Standard

    Work

    Batch

    Reduction

    Layou

    t

    MistakeProofing

    5S SystemProjects

    VisualManagement

    POU

    Cellular / FlowPull / Kanban TPM

    Continuous Improvement

    ValueStreamMapping

    Teamwork

    Rewards /Recognition

    Training

    Building Blocks of The LeanBuilding Blocks of The Lean

    EnterpriseEnterprise

    O OH d PROFIT b O ti l

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    How we do PROFIT by an OperationalHow we do PROFIT by an Operational

    Excellence Mission StatementExcellence Mission Statement

    Develop the ability:

    To recognize and identify waste

    To have to courage to call it waste

    To have the desire to eliminate it

    Eliminate the waste

    Truly understand that waste

    Raises costs

    Produces no corresponding benefit

    Threatens all of our jobs

    O ST d PROFIT th L Si

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    To do PROFIT we can use the Lean SixTo do PROFIT we can use the Lean Six

    Sigma Strategy Sigma Strategy

    for turning manufacturing and businessprocesses into competitive weapons.

    Producing what is needed, when it isneeded, with a minimum amount of

    materials, equipment, labor and space.

    Prime Directive - to continually seek out and

    eliminate waste and wasteful practices.

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    The Lean Six Sigma Strategy The Lean Six Sigma Strategy

    with these 4 Main Goals:

    #1) IMPROVE QUALITY#1) IMPROVE QUALITY

    #2) ELIMINATE WASTE#2) ELIMINATE WASTE

    #3) REDUCE LEAD TIME#3) REDUCE LEAD TIME

    #4) REDUCE TOTAL COSTS#4) REDUCE TOTAL COSTS

    With an overriding principle: Safety 1Safety 1stst

    !!to continually seek out and eliminate unsafe operating

    conditions and practices in every aspect of our

    Business.

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    The Lean Enterprise is a Strategy The Lean Enterprise is a Strategy

    with these 4 Main Goals:

    #1) IMPROVE QUALITY#1) IMPROVE QUALITY

    #2) ELIMINATE WASTE#2) ELIMINATE WASTE

    #3) REDUCE LEAD TIME#3) REDUCE LEAD TIME

    #4) REDUCE TOTAL COSTS#4) REDUCE TOTAL COSTS

    With an overriding principle: to continually seek out and eliminate unsafe operating conditions and

    practices in every aspect of our Business and every process within our

    Operations and to constantly, and consistently, enhance Health/Welfare,

    Safety and Environmental concerns and issues.

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    With a well-planned implementation,

    overall expectedRESULTSmay include a (within 12 months)

    35% to 50%reduction in lost time/safety-related incidents and accidents

    15% to 30%decrease in scrap and rework

    25% to 40%reduction in total cycle time

    The Promise of Lean Six SigmaThe Promise of Lean Six Sigma

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    Lean Six Sigma Benefits.

    The Benefits Are There For The Taking

    The Benefits Always Include Increased Market Share, Lowered Cost HigherProfits And Happier Customers (And Shareholders)

    Lean Is The Only Answer Known That Provides These Benefits

    Lean Never Fails If You (R-E-A-L-L-Y) Do It

    Saying Lean Is Not Doing Lean

    Every Successful Business That Competes In An Over-capacity Or Price-sensitive Market Is Doing Lean Whether They Know It Or Not

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    Lean Six Sigma

    Philosophy and Key Concepts The 5 core principles of Lean

    Define value-added and non-valued added

    activity Define the 7 most common types of waste

    and their causes.

    Review a systematic approach to discover

    waste within a process.

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    Learn the 5 Core Principles of Lean:1) Specify value in the eyes of the customer

    2) Identify value stream and eliminate waste

    3) Make value flow at pull of the customer

    4) Involve & empower employees

    5) Continuously improve in pursuit of perfection

    Lean Six Sigma

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    Customer perceives valueCustomer perceives valueValue Added Activity

    An activity that changes the size,

    shape, fit, form, or function of material

    or information (for the first time)to satisfy the customer.

    Non-Value Added Activity

    Those activities that consume time or

    resources, but do not add value in the

    eyes of the customer.

    Lean Six Sigma

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    Value Added

    Any activity or operation performed that helps transform a product or servicefrom its raw state into its finished form.

    Completed right the first time.

    Any activity customer is prepared to pay for. Activity required to ensure that a

    product or service is delivered in conformance to specification.

    Non-Value Added

    Any activity that doesnt help to transform a product or service into its final

    form. Activity not performed right. Activity customer not willing to pay for.

    This includes:

    Unnecessary process steps Movement of inventory, paperwork, etc.

    Re-work, corrections, etc.

    Storage between operations, batching inventory

    Wait times, delay times, idle times

    Lean Six Sigma - Definitions

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    Lean Six Sigma - 7 most common wastes

    Identify and reduce: Defects (repair, rework, scrap)

    Overproduction (inventory)

    Transportation (conveyance)

    Waiting (queue time)

    Inspection (reliance on mass inspection/ verification)

    Motion (parts, paper, people) Process, itself (over-processing, long cycles)

    Commonly referred to as the 7WsCommonly referred to as the 7Ws

    *7 common wastes of production*7 common wastes of production

    (Shingo)(Shingo)

    Commonly referred to as the 7WsCommonly referred to as the 7Ws

    *7 common wastes of production*7 common wastes of production

    (Shingo)(Shingo)

    MUDA = non-value added activity (waste)MUDA = non-value added activity (waste)

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    Motion

    Waiting time

    Overproduction

    Processing time

    Defects

    Inspection

    Transportation

    Problems/ Causes

    Incorrect layoutsLack of proximity of machinesOff-line resources

    Waiting workers, machines, materialLong set-ups and lead times

    Large batches, raw material stocksHigh WIP, finished goods stocks

    Making for the sake of itIgnoring customer demands

    Long cycle times- process, itselfReduced efficiency- over processingHigh overall lead times

    Long delays for rectificationCostly reworkDissatisfied customers

    Approvals of approvalsHigh number of verification stepsReliance- Mass inspection technique

    Unnecessary movementExtra handling

    Types of Waste (7Ws)

    ValueAdded

    Non- Value Added,

    but necessary

    Waste

    Focus on

    reduction

    Peop

    le

    Proce

    ss

    Pro

    du

    ct

    The Causes of Waste in most ProcessesThe Causes of Waste in most Processes

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    Product Lead-TimeProduct Lead-Time

    RawMaterials

    FinishedGoods

    Value AddedTime

    Non- ValueAdded Time

    TIME

    Lean Six Sigma

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    Product Lead-TimeProduct Lead-Time

    95% Non- Value Added95% Non- Value Added

    Lean Six Sigma

    Historically,Historically,

    improvement effortsimprovement efforts

    have been focused here.have been focused here.

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    Product Lead-TimeProduct Lead-Time

    Whereas, Process Analysis activitiesWhereas, Process Analysis activitiesshouldshould

    Focus here - the Elimination of WasteFocus here - the Elimination of Waste

    (MUDA)(MUDA)

    95% Non- Value Added95% Non- Value Added

    Lean Six Sigma

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    Identifying WasteIdentifying WasteWaste can take many forms; some causes of themost common forms of waste include:

    lack of adherence

    unnecessary approvals or signatures

    reviews of reviews

    multiple hand-offs

    transportation

    long setup time

    correction, and

    over-production

    Lean Six Sigma

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    Identifying WasteIdentifying Waste

    Other causes of waste may include:

    poor maintenance

    lack of training

    poor supervisory skills

    ineffective production planning/ scheduling

    lack of workplace organization

    Supplier quality/ reliability

    In most cases, inventory is wasteful; moreimportantly, inventory hides all sorts ofproblems in the company

    Lean Six Sigma

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    Learn to Recognize the Types of Waste

    From Taiichi Ohno, Architect of the Toyota Production System

    PEOPLE

    TYPESOF

    WASTE

    Processing

    Motion

    Waiting

    FixingDefects

    Making Too

    Much

    Moving

    Things

    Inventory

    QUANTIT

    Y

    QUALITY

    Overproduction / Making To Much

    Ties up capital, diverts production fromcustomer requirements, loss of inventories

    Transporting / Moving ThingsUnnecessarily increases production time,

    extra WIP

    Unnecessary Stock / InventoryTies up capital, risk of changes

    WaitingDecreases productivity, wastes personnel

    resources

    Unnecessary MotionIncreases production time, unnecessary

    operator motion

    ProcessingPoorly designed / incapable processes

    DefectsScrap, rework, returns

    Lead time reduction is achieved by identifying and eliminating waste

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    40Inventory Hides ProblemsInventory Hides Problems

    Long

    Set-up

    TimePoor

    5-S

    Quality

    ProblemsLine

    Imbalance

    Down-

    Time

    Vendor Delivery Problems

    Poor

    Scheduling

    Poor

    Communication Absenteeism

    Poor

    Process

    Capability

    Raw Material Finished Goods

    Your CompanyYour Company

    Lean Six Sigma

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    Process Analysis to the RescueProcess Analysis to the Rescue

    we have only begun to deal with issues involved

    in trying to tie everything together for a whole-

    system approach. Some of the problems that

    continue to confound us are the following:The way manufacturing works with Sales makes

    scheduling and running the plants difficult.

    We compound the above problem by the way we order from

    suppliers.

    Labor and management still dont trust each other.

    The way we measure performance doesnt provide information usefulto running a plant and often encourages wrong decisions.

    Lean Six Sigma

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    Look at the 3 Real Things in every operation

    Material Flow

    (or Business Steps i.e. transactional processes)

    Information Flow (data)

    Work-in-process (could be both)

    Lean Six Sigma How to Discover Waste

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    Be on the look-out for these

    3 Major contributors

    Overburden/ Overdoing

    Unevenness

    Process methods

    Lean Six Sigma How to Discover Waste

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    Be on the look-out for these

    3 Major contributors

    Overburden/ Overdoing (muri)

    - waste caused by how work and tasks are designed

    Unevenness (mura)- waste caused by poor quality (process unpredictability)

    Process methods (muda)- waste caused by DOT WIMP

    Lean Six Sigma How to Discover Waste

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    Lean Six Sigma - What actions must we take?

    We must

    design products to match a stable,

    standard production process

    gain Market share

    - and - increase our competitiveness !

    Now how do we get there ??Now how do we get there ??

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    Lean Six Sigma

    Utilize the process DMAIC Utilize the process DMAIC

    (Define, Measure, Analyze, Improve and Control)(Define, Measure, Analyze, Improve and Control)

    Understand the Problem

    Form the Team

    Understand the Process

    Gather Process Data

    Analyze the Process

    Identify possible Corrective Actions

    Screen/ Experiment to select best action

    Implement Action Verify Action

    Sustain Improvement

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    The Lean Six Sigma is a Strategy The Lean Six Sigma is a Strategy for turning manufacturing and business

    processes into competitive weapons.

    Producing what is needed, when it isProducing what is needed, when it is

    needed, with a minimum amount ofneeded, with a minimum amount of

    materials, equipment, labor and space.materials, equipment, labor and space.

    Prime Directive - to continually seek out and

    eliminate waste and wasteful practices.

    Lean Six Sigma

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    SIX SIGMA

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    Six Sigma

    Six Sigma is the term applied to the

    application of the DMAIC methodology.

    It is a structured, disciplined, rigorous

    approach to process improvement.

    The five steps link to each other into a

    logical sequence, creating an infinite

    loop for process improvement.

    The goal of the method is to achieve 3.4

    defects per million parts (or

    opportunities of doing it wrong), mostcommonly known as 6 Sigma.

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    Six Sigma

    If the organization you work for has a Six SigmaProgram in place, not necessarily guarantee the

    success of the organization. It depends on good

    teams, good steering committee and champions

    as well as management support.

    In any Six Sigma program, keeping the right people

    engaged towards success is the key.

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    Six Sigma DEFINE Stage:

    The objective in this area is to create a clear

    statement, a Team Charter, that depicts the

    success story to be created.

    Shows a high level description of the

    processes being improved and the expectedachievements.

    Show how your customers will be impacted

    The most critical stage to catch the supportfrom your organization.

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    Six Sigma MEASURE Stage:

    The whole objective here is to gather data and

    information that will help you in pin pointing the realcauses of the problem being resolved.

    Here you will know your current situation and the

    expectation on how much can be improved.

    Information here, helps to refine your define stage ifneeded.

    Set up the basis for the next stage:

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    Six Sigma ANALYZE Stage:

    The objective here is to get the data and

    use statistical tools to identify the root

    cause(s), create a hypothesis (orseveral ones) and prove them out.

    The ones that prove to be the real

    causes, are the ones needed to beaddressed on the next stage.

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    Six Sigma IMPROVE Stage:

    The target id to implement actions to

    correct the problems identified on the

    previous stage.These actions need to be tested and

    measured to verify that are effective.

    The effective methods set the basis forthe next stage.

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    Six Sigma CONTROL Stage:

    The target in here is to turn the solutions found into a rentable

    change in the processes.

    These changes are to monitor the performance, maintain the

    benefits from the solution implemented and set the ground for

    new improvement opportunities as the new data being

    collected feeds the DMAIC cycle for another project.In the regulated industry, theses changes might require, new

    procedures (SOP) and Validations to ensure compliance to

    ISO and FDA regulations as applicable.

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    Six Sigma Summary

    Each single stage relies on the previous one for

    a comprehensive effect.

    Cutting corners is prohibited in Six Sigma.

    All data generated and used must be kept in an

    organized fashion, might be helpful when theDMAIC cycle gets you to a problem where

    that particular information was already

    gathered.

    Si Si T l B

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    Six Sigma Tool BoxTOOL NAME D M A I C TOOL NAME D M A I C

    Affinity Diagram X X Frequency Plots X X X XBrainstorming X X FMEA (Failure Mode & Effect Analysis) X

    Business Case X Gage R & R X

    Cause-and- Effect Diagrams X Hypotesis Tests X

    Charter X t-test

    Consensus X paired t-test

    Control Charts X X X X ANOVA

    Continuous data Chi Square

    Individuals Kano Model X

    X-Bar, R Planning Tools X

    EWMA Gantt Charts

    Discrete data Planning Gridp,np Pareto Charts X X X

    c,u Prioritization Matrix X X

    Critical to Quality Tree X Process Capability X X

    Data Collection Forms X X X X Process Sigma X X

    Check Sheet Quality Control Process Chart X

    Pfrequency Plot Check Sheet Regression X

    Confirmation Check Sheet Rolled Throughput Yield X

    Concentration Diagram Sampling X X X X

    Data Collection Plan X X X X Scatter Plots X

    Design of Experiment X X SIPOC (Suppliers, Inputs,Process,Outputs,Customers) X

    Full Factorial Stakeholder Analysis X XReduced Fractions Standardization X

    Screening Designs Stratification X X X X

    Placket-Burnham Designs Stratified Frequency Plots X

    More than Two Levels Time Series Plots (Run Charts) X

    Flow Diagrams X X X X X VOC (Voice of the customer) X

    CYCLE STAGE CYCLE STAGE

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    Six Sigma -Summary

    After each stage is completed,demand a meeting a with thepeople that must know, theprogress is your best selling tool tokeep getting the support.

    Dont be shy your champion isthere to assist you, the Black Beltis there to help you; no one is anexpert on all the statistical tools,

    so ask for help before assumingincorrectly.

    L Si Si

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    Lean Six Sigma

    Six Sigma alone is not LeanManufacturing, is just one tool,that combined with statistics cangive you solutions.

    Using the DMAIC cycle and using

    other Lean Manufacturing toolsinstead of Statistics can alsoproduce results.

    L Si Si A h d T h i

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    TYPE OFWASTE

    WASTEREDUCTIONAPPROACH

    METHOD DESIREDRESULT

    Standard Work

    Workplace

    Organization

    Kaizen

    WorkplaceManagement

    Just-in-time

    Error

    Proofing

    Processing

    Motion

    Waiting

    WhatYouNeed,WhenYou

    NeedIt

    HighlyEfficient,

    SafeWorkAreasWithHigh

    Output

    GoodQuality

    Inventory

    Moving

    Things

    Making Too

    Much

    FixingDefects

    Leveling

    Kanban

    Quick Setup

    Preventive

    Maintenance

    Detection

    Warning

    Prediction

    Prevention

    CATEGORYOF WASTE

    PEOPLE

    QUANTITY

    QUALITY

    FOCUSPOINTS

    Work Balance

    WIPLocation/Amount

    Kanban Location

    Kanban Types

    Lot Sizes

    Changeover Analysis

    PM Analysis

    Layout

    Labeling

    Tools/PartsArrangement

    Work Instructions

    Efficiency

    Takt Time

    Skills Training

    Shift Meetings

    Cell/Area Teams

    Visual Displays

    Appropriate AutomatedAssistance

    Fixture Modifications

    Successive Checks

    Limit Switches

    Check Sheets

    Photocells, Templates,Etc.

    Cross Training

    PRINCIPALWORKSHEETS

    Standard WorkSheet (SWS)

    Time ObservationForm (TOF)

    Standard WorkCombination

    Sheet (SWCS)Work Load

    Balancing Sheet(WLBS)

    Kaizen TargetSheet (KTS)

    Kaizen ActionSheet (KAS)

    SWSSWCSWLBSKanbansTable of

    ProductionCapacity ByProcess (TPCP)

    PM SchedulingSheet (PMSS)

    SWCS

    Error ProofingAction Sheet(EPAS)

    Error Proofing ToDo List (EPL)

    Skill VersatilityVisual Display

    JidokaAutonomation

    20 Keys

    Kaizen - one

    effective

    method among

    many that

    engages PEOPLE

    and recruits

    the other tools

    Lean Six Sigma- Approaches and Techniques

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    KA

    IZ

    EN

    Kaizen = Continuous Improvement

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    Kaizen = Continuous Improvement

    Kai = Small, Continuous ChangeZen = Ongoing Change For The

    Better

    Structured, Focused, Coached,Mandated & Required Activity ToCompel Every Employee To

    Participate In Improving The QualityAnd Efficiency Of Their Day-to-dayMicro-processes

    Not A Suggestion Box Program

    Building Blocks of Lean Production

    Just-in-time

    Standard operations

    Mistake-proof processing

    Pull production & single pieceflow

    Cellular manufacturing

    Visual workplace

    Kaizen is the transport vehicle

    to import these building blocks

    of lean production

    These concepts are equally applicable to the factory floor and within the office

    Lean Six Sigma Guides for Kaizen

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    Reject the current situation

    Keep an open mind to change

    Maintain a positive attitude

    Make problems visible; make

    the workplace visual

    Never leave in silentdisagreement

    Practice mutual respect every

    day

    One person, one voice - noposition or rank

    Theres no such thing as a dumb

    question

    Take action over excuses and

    make actual improvements now

    Get on base rather than go for the

    long ball (small progress vs. all)

    Use your head rather than your

    money

    Destroy myths of fixed production

    Its a never ending task

    HAVE FUN andJUST DO IT!

    Lean Six Sigma Guides for Kaizen

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    VALUEVALUE

    STREAMSTREAM

    MAPPINGMAPPING

    L Si Si Sh t Hi t

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    Origins in Toyota, circa1955 The way of doing business

    Also called Material and Information Flow Mapping

    Used by Toyota Motors to show both current and ideal states

    as part of the lean implementation process

    Discussed in Lean ThinkingFurther developed and

    documented by the Lean

    Enterprise Institute of

    Brookline, Mass.

    Learning to See

    19961998

    Lean Six Sigma Short History

    L Si Si Wh t i V l St ?

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    Total Value Stream

    SUPPLIERS YOUR PLANT OR BUSINESS CUSTOMER TO END USER

    All the actions, both value added and non-value added, currently

    required to bring a product from raw materials to the customer.

    All the actions, both value added and non-value added, currently

    required to bring a product from raw materials to the customer.

    Lean Six Sigma What is Value Stream?

    Lean Six Sigma Value Stream Perspective

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    A value stream is all the actions (both value added and non-value

    added) currently required to bring a product (or transaction) though themain flows essential for every product/ service: from raw material/

    (customer need), through all the required steps, then back to the

    arms of the customer.

    Taking a value stream perspective means working on thebig picture, not just individual processes, and improving

    the whole, not just optimizing the parts.

    TOTAL VALUE STREAM

    SUPPLY

    PARTNERS

    YOUR PLANT OF COMPANY CUSTOMER TO END USER

    Lean Six Sigma Value Stream Perspective

    Lean Six Sigma Value Stream Map

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    WIP 870

    QTIME

    72H

    MELT

    903M

    INSP

    CHEM

    Hold

    Furnace

    Cast

    903

    INSP

    PROFILE

    WIP 696

    QTIME

    P/T 6N

    LOT 75K

    P/T 8H

    WIP 8 COILS

    120K

    P/T 3 HR

    15K

    WIP

    STORE STAGEBREAKDOWN

    911

    REC STAGE

    LEAD 2231.1

    VA 210.17%SCRAP

    WIP

    746K

    QTIME

    8 1OK

    LOT 1 COILTIME .1

    WIP 15K

    WIP

    108K

    8HR

    Q/T

    8

    DOWNTIME 15%

    DOWNTIME 15.5%

    8 6 8 3

    OperationalOperationalexampleexample

    Map major process steps

    I.D. Value (green/ yellow) / Non-value (red)

    Capture all times, quantities

    Prioritize areas to improve

    X SHIPPED PER DAY

    850K

    1.870 WIP BEING WORKED

    4.276 WIP BEING STORED

    Lean Six Sigma Value Stream Map

    Lean Six Sigma Value Stream Map

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    Customer

    MACHINING

    C/T=1568 m

    C/O=50 min.

    2 SHIFTS

    OPER. 48

    Daily

    FIFO

    Prodn Cont.

    Supplier OrdersOrders

    IRREGULAR

    ASSEMBLY

    C/T=936 m

    C/O=0 min.

    1 SHIFT

    OPER. 24

    TEST

    C/T=60 m

    C/O=30 min.

    1 SHIFTS

    OPER. 5

    FINISH

    C/T=210 m

    C/O=0 min.

    1 SHIFTS

    OPER. 6

    DISPATCH

    C/T=30 m

    C/O=0 min.

    1 SHIFTS

    OPER. 2

    FIFOFIFO

    OXOX

    1 DAY

    2 DAYS 2 DAYS

    900 MINS 900 MINS 240 MINS 150 MINS 120 MINS

    1568 MINS 936 MINS 60 MINS 210 MINS 30 MINS

    4 WEEKS

    OUT

    12 WEEK FORECAST

    < 1/2 DAY

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    To understand the current situation - Thebig picture point of view (To use as a tool to

    improve the whole vs. optimizing the parts)

    Exposes sources of waste - not just the waste

    Shows linkage between information flow and

    material flow

    Forms the blueprint to identify areas ofimprovement

    Lean Six Sigma Why do Value Stream Mapping?

    Lean Six Sigma Why do Value Stream Map do for us?

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    It helps visualize more than just the single-process level, i.e.assembly, welding, etc., in production. You can see the whole

    flow.

    It helps to see more than waste. Mapping helps to see the sources

    of waste in your value stream.

    It provides a common language for talking about manufacturing

    (and transactional) processes.

    It makes decisions about the flow apparent, so you can discuss

    them. Otherwise, many details and decisions in your area just

    happen by default. By adding data, it ties together lean concepts and six sigma

    techniques, which helps you avoid pet projects.

    Lean Six Sigma Why do Value Stream Map do for us?

    Lean Six Sigma V l St M i E ti l T l

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    It forms the basis of an implementation plan. Byhelping you design how the whole door-to-door flow

    should operate - a missing piece in so many lean

    efforts - value stream maps become a blueprint for

    improvement. Imagine trying to build a house withouta blueprint!

    It shows the linkage between the information flow

    and the material flow. No other tool does this.

    Lean Six Sigma Value Stream Map is an Essential Tool

    Lean Six Sigma Value Stream Map is an Essential Tool

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    It enhances the quantitative tools and layout diagrams

    that produce a tally of non-value added steps, leadtime, distance traveled, the amount of inventory,

    and so on.

    Value stream mapping is a qualitative tool by whichyou describe in detail how your facility should

    operate in order to create flow. Numbers are good

    for creating a sense of urgency or as before/ after

    measures. Value stream mapping is good for

    describing what you are actually going to do to

    affect those numbers.

    Lean Six Sigma Value Stream Map is an Essential Tool

    Lean Six Sigma Process Map Analysis

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    SteelRecd

    PartsStocked

    Componentsmachined

    Plate Steelburned

    StructuralSteel Sawed

    Steelstocked

    Weld Shop Paint Shop

    Elect/Mech PartsRecd

    Blasting BoothSand Bast

    Mech parts toMech Assembly

    Staging

    Partsstocked

    Inspection

    MechAssembly

    Elect parts toElect Assembly

    Staging

    ElectAssembly

    InspectionRun TestCratingShippingWarehouseShip to

    Customer

    Steel Fabrication Process (Current State)

    Can you identify areas for improvement?

    Lean Six Sigma Process Map Analysis

    Lean Six Sigma Process Map Analysis

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    SteelRecd

    Componentsmachined

    Plate Steelburned

    StructuralSteel Sawed

    Weld Shop Paint Shop

    Elect/Mech PartsRecd

    Blasting BoothSand Bast

    All parts toAssemblyStaging

    Inspection

    Mech/ElectAssembly

    Inspection &Run Test

    Ship toCustomer

    Steel Fabrication Process (Future State)

    Shipping &Crating

    Lean Six Sigma Process Map Analysis

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    The Benefits of Implementing 5SThe Benefits of Implementing 5S

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    The Benefits of Implementing 5SThe Benefits of Implementing 5S

    5S provides a basis for being a world-class competitor and

    the foundation for a disciplined approach to theworkplace.

    Safer working conditions

    A cleaner and more organized work area

    Reduction in non-value added time

    Effective work practices

    Efficient work processes

    Facilitating a change: Safer, Better, Faster !Facilitating a change: Safer, Better, Faster !

    And The 5-Ss areAnd The 5-Ss are

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    And The 5 S s areAnd The 5 S s are

    Seiri (Separate) or Sort

    Seiton (Straighten) Store, or Put-in Place

    Seiso (Clean) or ShineSeiketsu (Standardize)

    Shitsuke (Discipline) or Sustain

    + Safety !+ Safety !

    Sometimes called 5S + 1 or 6SSometimes called 5S + 1 or 6S

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    Sometimes called 5S + 1 or 6SSometimes called 5S 1 or 6S

    Safety 1Safety 1stst !!(in everything we do!)

    Seiri (Separate) or Sort

    Seiton (Straighten) Store, or Put-in Place

    Seiso (Clean) or Shine

    Seiketsu (Standardize)

    Shitsuke (Discipline) or Sustain

    Lean Six Sigma - Other Lean Tools

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    Lean Six Sigma - Other Lean Tools

    Root Cause Analysis and CorrectiveAction (RCCA) 5 Why Technique

    Spaghetti Charts

    Pareto Analysis Visual Displays

    Visual Controls

    Total Predictive Maintenance

    SMED Single Minute Exchange of Dies.

    Lean Six Sigma

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    Lean Six Sigma

    LEAN SIX SIGMA

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    LEAN SIX SIGMA

    REFERENCES:

    The Lean Enterprise http://www.freeleansite.com/

    Six Sigma Green Belt and Champion Training BD Training

    The Kaufman Consulting Group, LLC (KCG) BD Training

    Six Sigma Pocket Guide, Rath & Strongs (ISBN: 0-9705079-0-9)