Lean vs-six-sigma
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Transcript of Lean vs-six-sigma
Lean vs. Six Sigma
All Rights Reserved, Juran Institute, Inc. Lean vs. Six Sigma 2 .PPT
Learning Objectives
1. Understand DMAIC and Lean Methodologies.1. Understand DMAIC and Lean Methodologies.
4. Where are Six Sigma and Lean Methodologies used?
4. Where are Six Sigma and Lean Methodologies used?
3. What are the tools used for Six Sigma and Lean?3. What are the tools used for Six Sigma and Lean?
2. What are the differences between Six Sigma and Lean?
2. What are the differences between Six Sigma and Lean?
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InputsInputs
Six Sigma Basic Premise
Outputs(CTQ)
Outputs(CTQ)
Do you know what is important to customers?Do you know what “Xs” are important to
meet customer needs?How do the “Xs” drive outcomes,
revenue, and cost?
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ControlControl
ImproveImprove
AnalyzeAnalyze
MeasureMeasure
DefineDefine
Test HypothesesList Vital Few Xs
Identify Control SubjectsDevelop Feedback LoopsDevelop Process Control Plan to Hold the GainsImplement, Replicate
Select the SolutionDesign Solution, Controls, and Design for CultureProve Effectiveness
Develop Project CharterDetermine Customers & CTQsMap High-Level Process
Establish and Measure YsPlan for Data CollectionValidate Measurement SystemMeasure Baseline SigmaIdentify Possible Xs
Six Sigma DMAIC Methodology
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Y
Xs
Measure
Analyze
Improve
Control
Pro
cess
Ch
ara
cter
izat
ion
Pro
cess
O
ptim
iza
tion
Goal: Y = f ( x )
DefinePractical Problem
Statistical Problem
Statistical Solution
Practical Solution
Six Sigma Methodology
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y
x
Poor Design
Changing Needs
Measurement System
Insufficient Process Capability
Skills & Behaviors
Sources of Variation
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Lean Methodology
Analyze the Value Stream Attribute MapAnalyze the Process Load and CapacityPerform VA/NA Decomposition AnalysisApply Lean Problem Solving to Solve for Special Causes
Stabilize and Refine Value StreamComplete Process and Visual ControlsIdentify Mistake-proofing OpportunitiesImplement S4-S6Control Plan, Monitor Results, and Closeout Project
Conduct the Rapid Improvement EventDesign the Process Changes and FlowFeed, Balance, Load the ProcessStandardize Work TasksImplement New Processes
Define Stakeholder Value and CTQs Define Customer Demand Map High-level ProcessAssess for 6S Implementation
Measure Customer DemandPlan for Data CollectionValidate Measurement SystemCreate a Value Stream Attribute MapDetermine Pace, Takt-time and ManpowerIdentify Replenishment and Capacity ConstraintsImplement S1-S3
ControlProcess
Improve Process - Pull
Analyze Process - Flow
Measure Value
Define Value
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Why Define a Process as a Value Stream?
A Value Stream Focuses attention on what is important for the customer. Identifies all the necessary components to bring a product or
service from conception to commercialization. Identifies waste inherent in processes and works to remove
it. Reduces defects in products and deficiencies in processes. Focuses on improving specs and cost.
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What Is Typically Found
Lean Value Stream Management starts with defining value in terms of products and process capabilities to provide the customer with what they need at the
right time and at an appropriate price.
Valueadded
Non-value added/waste
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The Eight Wastes
1. Overproduction—making or doing more than is required orearlier than needed.
2. Waiting—for information, materials, people, maintenance, etc. 3. Transport—moving people or goods around or between sites.4. Poor process design—too many/too few steps, non-
standardization, inspection rather than prevention, etc.5. Inventory—raw materials, work-in-progress, finished goods,
papers, electronic files, etc.6. Motion—inefficient layouts or poor ergonomics at work-
stations or in offices.7. Defects—errors, scrap, rework, non-conformance.8. Underutilized personnel resources and creativity—ideas
that are not listened to, skills that are not utilized.
adapted from Taiichi Ohno
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History of Lean
Toyota Ohno and
Shingo Flow of work Small batch
sizes New philosophy
Womack “Mach. Changed World”
Eliminate Waste Improve
performance Flexibility
1940 1952 1964 1980 1990 2000 2008
Just-in-Time Schonberger
“Japanese Mfg Techniques”
Takes TPS and imports to US
Added to 6s tool kit
Large quantities Rapid pace High training
US war production
TPS
Lean
JIT
Lean 6s
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The Methods
LeanLean&&
Six Six SigmaSigma
LeanLean&&
Six Six SigmaSigma
Improve SpeedImprove Speed
Achieve BreakthroughAchieve Breakthrough Dashboard Results Dashboard Results
Lower CostsLower Costs
Culture ChangeCulture ChangeSustain PerformanceSustain Performance
Higher QualityHigher Quality
Methods Results
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Chronic Waste
COPQ
Chronic Waste
COPQ
Six Sigma& Beyond Six Sigma& Beyond
Time
BreakthroughBreakthrough
Accelerated Change Management SupportAccelerated Change Management Support
How to Think About Improvement
Sporadic Spike
RCCARCCADFSSDFSS Lean Six SigmaLean Six Sigma
The Juran Trilogy ®The Juran Trilogy ®
Plan Control Improve
Lessons LearnedLessons Learned
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ChangeManagement
ChangeManagement
Plan, Do, Study, Act
(PDSA)
Plan, Do, Study, Act
(PDSA)
Lean &Six Sigma
DMAIC
Lean &Six Sigma
DMAIC
Design forLean
Six Sigma
Design forLean
Six Sigma
Unclear
SolutionC
lear
S
olut
ion R
adical
Mod
erat
e
Small Gains or Clear Solution
Launch New Product,
Service, or Process
LargeGains
MediumGains
Matching Improvement Process to Need
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Lean and Six Sigma
LEAN = Improvement principles focused on dramatically improving process speed and eliminating the eight deadly wastes.
Improve Process-
Pull
ControlProcess
AnalyzeProcess-
Flow
Measure Value
DefineValue
SIX SIGMA = Breakthrough Process, Design, or Improvement Teams focused on eliminating chronic problems and reducing variation in processes.
Improve ControlAnalyzeMeasureDefine
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Lean Project Attributes
Improvement
Simply stated: “Lean is about moving the Mean.” It focuses on efficiency.
Lean reduces average cycle time. Lean reduces excess inventory. Lean improves average response time.
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Six Sigma Attributes
Improvement
Simply stated: “Six Sigma is about Reducing Variation.” It focuses on Effectiveness. The mean will most likely also be improved.
Decrease defect rate Increase Process Yield
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Lean and Six Sigma
Six Sigma = Breakthrough Process Improvement Teams focused on eliminating chronic problems and reducing variation in processes.
Lean = Rapid Improvement Teams focused on dramatically improving process speed, and the elimination of the eight deadly wastes.
IMPROVEDEFFICIENCY
Improve Process-
Pull
ControlProcess
AnalyzeProcess-
Flow
Measure Value
DefineValue
IMPROVEDEFFECTIVENESSImprove ControlAnalyzeMeasureDefine
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Lean Six Sigma
Lean Six Sigma is an approach to integrating the power of Six Sigma Tools and Lean Enterprise Tools which can be applied within an organization to create the fastest rate of improvement, maximize shareholder value, and increase customer delight.
Improve Process-
Pull
ControlProcess
AnalyzeProcess-
Flow
Measure Value
DefineValue
Improve ControlAnalyzeMeasureDefine
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Which Technique to Begin With?
Other Reasons to Begin Lean?
It is often advantageous to begin with Lean projects.– These are easier to understand and implement.
Begin with streamlining processes and Rapid Improvement Events.
– This gets the operation in good order.– Chronic problems are now easier to deal with.– “Low Hanging Fruit” is eaten.
Next, select Six Sigma projects
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Lean Projects
Use Lean when you are trying to streamline any process and reduce process waste.
Improve assembly line throughput
Reduction in Finished Goods Inventory
Reduce the time to process new proposals
Reduce machine setup time
Improve order processing time
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Six Sigma Projects
Use Six Sigma where process metrics are more difficult to collect or understand, and project success requires analysis of multiple input factors (Xs). These are often chronic problems.
Improve yield on a continuously running machine
Reduce defects on a machine with multiple inputs and machine settings
Reduce the amount of wait time for a call center
Improve the number of quality new hires
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Mixed Projects
What happens when you start a Six Sigma Project and it turns into a Lean project?
It is all about the correct tools.
Use the Lean tools for project success.
What happens if a Lean project turns into Six Sigma?
Depending when this is discovered, it may mean going back to utilize some Six Sigma tools before proceeding.