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Page 1: An introduction to lean six sigma

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Page 2: An introduction to lean six sigma

An Introduction to Lean Six Sigma

“We don’t know what we don’t know.We can’t act on what we don’t know.

We won’t know until we search.We won’t search for what we don’t question.We don’t question what we don’t measure.

Hence, we just don’t know.”Dr. Mikel Harry

Page 3: An introduction to lean six sigma

Process Improvement1. Initial Perception of problem

2. Clarify Problem3. Locate Point of Cause4. Root Cause Analysis

5. Design Solutions6. Measure Effectiveness

7. Standard

ize

Page 4: An introduction to lean six sigma

Lean Six Sigma Process Improvement

• Lean Six Sigma Seeks to improve the quality of manufacturing and business process by:– identifying and removing the causes of defects

(errors) and variation.– Identifying and removing sources of waste within

the process– Focusing on outputs that are critical to

customersDefine

Measure

AnalyzeImprove

Control

Page 5: An introduction to lean six sigma

Lean Six Sigma Process Improvement• LSS is a management philosophy that seeks to drive a

quality culture change through a multi-level based program

Level Training

Green Belt LSS Methodology and basic tool set

Black Belt Green Belt content plus advanced data analysis

Master Black Belt Black belt content plus program management, leadership skills, some advanced tools

Page 6: An introduction to lean six sigma

L6s

1930 19501900

L E A N

S i x S i g m a

Ford Assembly Line

Guinness Brewery

Shewhart Introduces SPC

Gilbreth, Inc.•Management Theory•Industrial Engineering

Deming•14 Points•7 Deadly Diseases

Toyota Production System

Lean Six Sigma Timeline

Page 7: An introduction to lean six sigma

L6s

1990 20001980

Motorola Introduces Six Sigma

S i x S i g m a

L E A N

Just – in–Time

SPC

Lean Mfg.

TQMAlliedSIgnalGE Adapt LSS to Business Processes Lean

Six Sigma

Lean Six Sigma Timeline

Page 8: An introduction to lean six sigma

Background on Lean• Lean comes out of the industrial engineering world• Taiichi Ohno – Toyota Production System.

– 1940s-1950s company was on verge of bankruptcy– Dynamics of industry were changing – moving from mass

production to more flexible, shorter, varied batch runs (people wanted more colors, different features, more models, etc).

• Ohno was inspired by 3 observations on a trip to America– Henry Ford’s assembly line inspired the principle of flow (keep

products moving because no value is added while it is sitting still)– The Indy 500 – Rapid Changeover– The American Grocery Store – led to the Pull system – material use

signals when and how stock needs to be replenished

Page 9: An introduction to lean six sigma

Path To LeanTheory Waste is Deadly

Application 1. Define Value – act on what is important to the customer

2. Identify Value Stream – understand what steps in the process add value and which don’t

3. Make it flow – keep the work moving at all times and eliminate waste that creates delay

4. Let customer pull -- Avoid making more or ordering more inputs for customer demand you don’t have

5. Pursue perfection -- there is no optimum level of performance

Focus Flow Focused

Assumptions Non-Value added steps exit

Results Reduced cycle time

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Waste DefinedWastes Healthcare Examples

Transport 1. Moving patients from room to room2. Poor workplace layouts, for patient services3. Moving equipment in and out of procedure room or operating room

Inventory 1. Overstocked medications on units/floors or in pharmacy2. Physician orders building up to be entered 3. Unnecessary instruments contained in operating kits

Motion 1. Leaving patient rooms to:• Get supplies or record• Documents care provided

2. Large reach/walk distance to complete a process step

Waiting 1. Idle equipment/people2. Early admissions for procedures later in the day3. Waiting for internal transport between departments

Over-Production 1. Multiple signature requirements2. Extra copies of forms3. Multiple information systems entries4. Printing hard copy of report when digital is sufficient

Over-Processing 1. Asking the patient the same questions multiple times2. Unnecessary carbon copying3. Batch printing patient labels

Defects 1. Hospital-acquired il lness2. Wrong-site surgeries3. Medication errors4. Dealing with service complaints5. Illegible, handwritten information6. Collection of incorrect patient information

Skills 1. Not using people’s mental, creative, and physical abilities2. Staff not involved in redesigning processes in their workplace3. Nurses and Doctors spending time locating equipment and supplies4. Staff rework due to system failures

Page 11: An introduction to lean six sigma

Lean Foundations• Standardized Work – people should analyze their work and

define the way that best meets the needs of all stakeholders. – “The current one best way to safely complete an activity with the

proper outcome and the highest quality, using the fewest possible resources”

– Standardized not Identical – mindless conformity and the thoughtful setting of standards should not be confused

– Written by those who do the work.• Level loading – smoothing the workflow and patient flow

throughout the hospital.• Kaizen – continuous improvement

Page 12: An introduction to lean six sigma

Lean Methods• Kaizen Events (or SCORE events)

– Planned and structured process that enables a small group of people to improve some aspect of their business in a quick, focused manner.

• Select• Clarify• Organize• Run• Evaluate

• 5S – this methodology reduces waste through improved workplace organization and visual management– Sort, Store, Shine, Standardize and Sustain

• Kanban – a Japanese term that can be translated as “signal,” “card,” or “sign.”– Most often a physical signal (paper card of plastic bin), that indicates when it is

time to order more, from whom, and in what quantity.

Page 13: An introduction to lean six sigma

Lean vs. Six Sigma• Lean tends to be used for shorter, less complex problems. Often

time driven. Focus is on eliminating wasteful steps and practices.• Six Sigma is a bigger more analytical approach – often quality driven

– it tends to have a statistical approach. Focus on optimizing the important steps – reducing defects.

• Some argue Lean moves the mean, SixSigma moves the variance. But they are often used together and should not be viewed as having different objectives.– Waste elimination eliminates an opportunity to make a defect– Less rework means faster cycle times

• Six Sigma training might be specialized to the “quality” department, but everyone in the organization should be trained in Lean

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L6sVOC vs. VOP

Voice of Customer

Voice of Process

The Voice of the Process is independent of the Voice of the Customer

SigmaCapability

Defects per Million Opportunities

% Yield

2 308,537 69.15%

3 66,807 93.32%

4 6,210 99.38%

5 233 99.98%

6 3.4 99.99966%

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L6sWhat’s good enough?

99% Good (3.8 Sigma) 99.99966% Good (6 Sigma)

20,000 lost articles of mail per hour (based on 2,000,000/hr)

7 articles lost per hour

Unsafe drinking water for almost 15 minutes each day

1 unsafe minute every 7 months

5,000 incorrect surgical operations per week

1.7 incorrect operations per week

2 short or long landings daily at an airport with 200 flights/day

1 short or long landing every 5 years

2,000,000 wrong drug prescriptions each year

680 wrong prescriptions per year

No electricity for almost 7 hours each month

1 hour without electricity every 34 years

Page 16: An introduction to lean six sigma

L6sGoals of Lean Six SigmaLSL USL

Customer Target

DefectsDefects

Prevent Defects byReducing Variation

LSL USL

Customer Target

Defects

Prevent Defects byCentering ProcessLSL USL

Customer Target

Meet Customer Requirements

Page 17: An introduction to lean six sigma

What Makes a Good Lean Six Sigma Project?

• There is no known solution• The root cause is not known• The problem is complex and needs statistical

analysis• The problem is part of a process• The process is repeatable• A defect can be defined • Project will take 3-6 months• There are data available

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The DMAIC Methodology• Define – describe the problem quantifiably and the

underlying process to determine how performance will be measured.

• Measure – use measures or metrics to understand performance and the improvement opportunity.

• Analyze – identify the true root cause(s) of the underlying problem.

• Improve – identify and test the best improvements that address the root causes.

• Control – identify sustainment strategies that ensure process performance maintains the improved state.

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Define

• Define Scope of the Problem– Document the Process– Collect and Translate the Voice of the Customer

• Determine Project Objective and Benefits– Define Metrics and Defects– Establish Preliminary Baseline– Develop Problem & Objective Statements– Estimate Financial Benefit

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Define (continued)

• Create Project Charter– Confirm Improvement Methodology– Define Project Roles and Responsibilities– Identify Risks– Establish Timeline– Managerial Buy-in

• Focus here is on the problem

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Measure Measure what is measurable, and make measurable what is not so” – Galileo

• Define “As Is” process– Value stream map/process flow diagram

• Validate Measurement System for Outputs– Don’t assume your measurements are accurate –

measuring system must accurately tell what is happening

• Quantify Process Performance– Collect data (Y’s)– Examine process stability/capability analysis

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Analyze• Identify Potential Causes (X’s)• Investigate Significance of X’s

– Collect data on x’s– Graphical/Quantitative analysis

• Pareto Chart• Fishbone Diagram (cause and effect)• Chi Square Test• Regression Analysis• Failure Mode Effects Analysis

• Identify Significant Causes to focus on (y=f(X))– Evaluate the impact of x’s on y

• Here you identify the critical factors of a “good” output and the root causes of defects or “bad” output.

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Improve

• Generate Potential Solutions• Select & Test Solution• Develop Implementation Plan

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Control

• Create Control & Monitoring Plan– Mistake proof the process– Determine the x’s to control and methods– Determine Y’s to monitor

• Implement Full Scale Solution– Revise/develop process– Implement and evaluate solution

• Finalize Transition– Develop transition plan– Handoff process to owner


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