An Overview of “Why” Six An Overview of “Why” Six Sigma Lean Sigma Lean

Oct 2015 Rev 9.2

RAH Consultant Group8478 Winged Foot DriveFrisco, Texas, 75034Tel: 214 766 0059Email: rah1492@gmail.com

Experts in organizational process improvements through education and assistance in problem solving and solutions to improve Profitability and Customer Profitability and Customer Satisfaction.Satisfaction.

Rex Horne, Certified Master Black Belt Six Sigma Lean; Professional Member of the International Society of Six Sigma Professionals

Insanity: doing the same Insanity: doing the same thing over and over again thing over and over again and expecting different and expecting different results.results.

Albert Einstein summed upAlbert Einstein summed upyour issues in two statements:your issues in two statements:

The Thought that got you The Thought that got you into trouble can not be into trouble can not be the thought that gets you the thought that gets you out of troubleout of trouble

ReactiveFocus on Results

Measurements are well established for outputs

Reacts to results

Waste Resources through firefighting

Pro-ActiveFocus on inputs, monitors results

Measurements are established to control and adjust inputs to

manage the corresponding effects on

outputModifies inputs to attain

desired outputsReduce and eliminate

the causes of defects in the processes

TWO DIFFERENT THOUGHTSTWO DIFFERENT THOUGHTS

Six Sigma Lean is not a department or programSix Sigma Lean is owned by all the employees of

the companyThe employees are responsible for the successes

or failures in the improvement processSix Sigma Lean is a proven methodology to

attain and maintain improvementThe only magic formula for improvement is

people and a desire to changeSix Sigma Lean is both a tool and a philosophy.

FIRST THINGS TO FIRST THINGS TO REMEMBERREMEMBER

Always ask what is it that my customer is expecting? “VOC”

Focus on the processChange the output by changing the inputs Y = f(x)Use a systematic approach to process change “DMAIC”Measurements are critical to controlling the inputsGet the process under control by getting it centered – Remove special causes from the processRemove Waste from the System

Work=Results: Not the amount of energy used

OVERVIEW TO CONTINUOUS OVERVIEW TO CONTINUOUS IMPROVEMENTIMPROVEMENT

SIX SIGMA PHILOSOPHIES DIFFERS FROM SIX SIGMA PHILOSOPHIES DIFFERS FROM MANY OTHER EDUCATIONAL ACTIVES IN MANY OTHER EDUCATIONAL ACTIVES IN

THAT:THAT:It recognizes that you are the expert at what you do. Six Sigma Lean is design to give you a set of tools and a methodology to solve problems. It’s purpose is not to tell you how to do your job.

Management must be engaged in the process for it to be successful to: prioritize activities, provide resources, encourage, set expectations, and foster an environment where Six Sigma Lean becomes the behavior of the culture.

The Process Experts are the closest group to the Input Factors that drive the Results. By using their understanding of the Process, they use the scientific method to determine Root Cause, and develop improvements activities.

Six Sigma Lean is a natural problem solving tactic that uses data and not guessing to reach solutions.

Focus: On the Elimination of

Variability in Results and the Centering of

the process on the Customer Target Value

Six SigmaQuality, Cost, +

Process Structure• Focus: on the Elimination

of Waste and Non-Value-Added Efforts. Improvement of Speed

LeanSpeed + Waste +

Overall Infrastructure

Both must be present and working in conjunction to maximize results

Product can be perfect and there still be a lot of waste in how it was produced

LEAN AND SIX SIGMA: THEIR FOCUS

Six Sigma is NOT about putting in more checks and inspections

You would still have mistakes & defectsMore inspections just allows you to catch them earlier

and requires more resources (and more $$$)Six Sigma IS about finding the ROOT CAUSES

of mistakes and eliminating them through process improvement, and putting Controls

in place so that they don’t happen again.

THE BOTTOM LINE…THE BOTTOM LINE…

The only way to change the Results The only way to change the Results is to understand, control, and is to understand, control, and modify the factors that drive the modify the factors that drive the ResultsResults

THE BOTTOM LINE…THE BOTTOM LINE…

.. A 4ð company will spend 10%-30% of revenue on internal and external repair

. A 6ð company will spend <1 % of revenue on internal and external repair

WHY "SIX" SIGMA?

Simply put: Six Sigma Lean is about improving profitability profitability by the reduction of waste in the organization.

SIX SIGMA LEAN IS A SIX SIGMA LEAN IS A “PROGRESSIVE APPROACH TO “PROGRESSIVE APPROACH TO

BETTER RESULTSBETTER RESULTS

It is critical that each task along the way, whether it supplies information, a service, or product is done right the first time to a clearly defined set of requirements.

AA A*BA*B A*B*CA*B*C A*B*C*DA*B*C*D Complete

A A Continuous Improvement Culture Continuous Improvement Culture will create a mindset that will create a mindset that insures insures “Correctness” “Correctness” every step of the way.every step of the way.

CHANGE INPUTS TO CHANGE RESULTS

Engine Inputs

•AIR

•FUEL

•SPARK

Engine Output

•Performance

You adjust these To Change This

ProcessProcess

Environment

Measurement

ManWoman

Material

Machine

Methods

ResultsControl of Input Factors is the only way to improve Results

Continuous Improvement Focuses on Continuous Improvement Focuses on the Process Factorsthe Process Factors

Understanding how the Input Factors Input Factors Affect the Results will reduce Surprises and Fire FightingSurprises and Fire Fighting

Environment

ManWoman

Material

Methods

Process Process TaskTask

Process Process TaskTask

Process Process TaskTask

Machine

Measurement

Environment

ManWoman

Material

Methods

Machine

Measurement

Environment

ManWoman

Material

Methods

Machine

Measurement

Results Results

Questionable Product or Service

=

Little or no understanding of how the Input affect the Results: Lack of data to support being under Control / Predictable

Not well understood and is the result of just doing some described action

Results

What a Uncontrolled Process Looks LikeWhat a Uncontrolled Process Looks Like

Unpredictable Results, Reworks, Uncertainty as to how good product is delivered to Customer, Returns,Higher than expected Cost

Uncontrolled and undocumented Rework without Root Cause Action

Uncontrolled and undocumented Rework without Root Cause Action

Final Inspection

Reject Non-Conforming product back to line

Reliance on Inspection to find problems!

Rejects

Variation and Special Causes being introduced without Understanding – What, Where, and How

? ? ? ?

Environment

ManWoman

Material

Methods

Process Process TaskTask

Process Process TaskTask

Process Process TaskTask

Machine

Measurement

Environment

ManWoman

Material

Methods

Machine

Measurement

Environment

ManWoman

Material

Methods

Machine

Measurement

Results Results Completed Product

or Service=

Understanding of how the Input affect the Results: Data to support being under Control / Predictable

Documented Repeatable Results that demonstrate Compliance to Customer Requirements

Results

Characteristic of a Controlled Process Characteristic of a Controlled Process

Documented Repeatable Results that demonstrate Compliance to Customer Requirements

Documented Repeatable Results that demonstrate Compliance to Customer Requirements

Understanding of how the Input affect the Results: Data to support being under Control / Predictable

Understanding of how the Input affect the Results: Data to support being under Control / Predictable

Expected Results that meet the Customer Requirements the First Time; At Expected Cost

Where most organizations are and what they Where most organizations are and what they need to becomeneed to become

Processes

QC - Police

?

?

?

?

??

??

Process Predictability

Uncertain ResultsPredicable Results

QA – Assurance: Verifying Compliance and Capability

Does not mean that the process is capable, but results are predictable

Documented Process and ToolingTrained PeopleMeasured Results with Controls

A Proactive Organization is fixing issues before they become PROBLEMS

The Goal of Lean Six Sigma is to improve the activities conducted by an organization.

•Reduce Waste •Determine what are the Factors that drive Poor results using the Scientific Method•Coming up with Best Solutions to Issues•Controlling the Process so it doesn’t drift•Improving Profitability

What Have We Discussed So Far?

•Six Sigma Lean is a set of tools to help the Process Expert solve problems•It will cause a shift from being Reactive to Proactive, by identifying issue and addressing them before they become a problem.•Everyone is responsible for success •The focus is on how Key Inputs affect the Results.•By understanding and Controlling the Key Input Factors and monitoring the

Results, we will attain the desired Results.•It is critical that every step of the way has clearly defined requirements for

success and each Process Expert is trained to Know “What to do,” “How to

Do,” and “How to know their actions were correct”.•Nothing moves from a task unless it meets the requirements.

Management Leadership Team

Six SigmaImprovement Teams

Six Sigma Steering Team

MembersAssociates

Team LeaderChampion

Technical Champion

MBB/BB

Sponsor

SIX SIGMA LEAN STRUCTURESIX SIGMA LEAN STRUCTURE

Major activities are driven by priorities set to meet the “Company’s Critical Objectives”.“Company’s Critical Objectives”.

The “Best” functioning improvement environment is one where the “Process Owners” using their Six Sigma Lean Tools, under the direction of their manager are solving issues before they become a “PROBLEMPROBLEM”.

Sponsors: Approves and is owner of improvement teams; with functional personnel owns improvements once implemented

• Plant Manager /Senior Functional Manager / President

Steering team: Sets priorities and leads improvement culture

• Senior Management Team

Master Black Belt:

• Trains and Mentors improvement teams; A go to expert in improvement methodology:

Black Belt

• Train Green Belts/ Mentor Teams

Champion

• Team Leader

Green Belt

• Team Member/ Team Leaders

White / White / YellowYellow BeltsBelts

• Team Member

SIX SIGMA LEAN ORGANIZATIONSIX SIGMA LEAN ORGANIZATION

How does my organization get started?How does my organization get started?

• Attain the assistance of a Six Sigma Lean Professional with experience in training, operational improvement, and structure.

• Select a group of “Process Owners” to train as Green Belts. These become the Core of your Improvement Activities.

• Select a “Low Hanging Fruit” Opportunity as the first Six Sigma Lean Activity.

• Allow the trained Process Owners to use their training and tools to gain experience in Problem Solving and implementation of Solutions.

• Have the group report on their solution. Nothing Communicates success better than those who attained the results.

• Communicate, Communicate, Communicate, the importance of Organizational Improvement.

• Select an internal candidate or candidates to become Six Sigma Lean Black Belts.

• Create an environment in which the organization “Owns” its improvements

• Celebrate Successful ResultsCelebrate Successful Results

If you wish more Information If you wish more Information regarding Six Sigma Leanregarding Six Sigma Lean

Please Contact Please Contact

RAH Consultant Group8478 Winged Foot DriveFrisco, Texas, 75034Tel: 214 766 0059Email: rah1492@gmail.com

More than 20 years in Process Improvement Education and Implementation.

Rex Horne, Certified Master Black Belt Six Sigma Lean; Professional Member of the International Society of Six Sigma Professionals