Introduction to the Quality Introduction to the Quality Philosophy:Philosophy:

Lean Six SigmaLean Six Sigma

Presented by Dr. Joan BurtnerPresented by Dr. Joan Burtner

Certified Quality Engineer Certified Quality Engineer

Associate Professor ofAssociate Professor of

Industrial Engineering and Industrial Industrial Engineering and Industrial ManagementManagement

ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 2

Why Do We Need Why Do We Need Lean Six Sigma? Lean Six Sigma?

““Lean Six Sigma is a methodology Lean Six Sigma is a methodology that maximizes shareholder value that maximizes shareholder value by achieving the fastest rate of by achieving the fastest rate of improvement in customer improvement in customer satisfaction, cost, quality, process satisfaction, cost, quality, process speed, and invested capital”. speed, and invested capital”.

((Lean Six SigmaLean Six Sigma, Michael George, , Michael George, p. 13)p. 13)

ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 3

The Six Sigma Approach The Six Sigma Approach in the Business in the Business

CommunityCommunity

DefinitionDefinition• a comprehensive and flexible system for a comprehensive and flexible system for

achieving, sustaining and maximizing business achieving, sustaining and maximizing business successsuccess

DriversDrivers• a close understanding of customer needs a close understanding of customer needs • disciplined use of facts, data, and statistical disciplined use of facts, data, and statistical

analysisanalysis• diligent attention to managing, improving, and diligent attention to managing, improving, and

reinventing the business processreinventing the business process

ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 4

Six Sigma ApplicabilitySix Sigma Applicability

Six Sigma has been successfully applied in Six Sigma has been successfully applied in manufacturingmanufacturing environments (eg Motorola). environments (eg Motorola).

Six Sigma has been successfully applied in the Six Sigma has been successfully applied in the serviceservice sector (eg GE Capital). sector (eg GE Capital).

More recently, Six Sigma has shown to be More recently, Six Sigma has shown to be exceptionally effective in exceptionally effective in educationaleducational settings. settings. • Eligible for Malcolm Baldrige National Quality Eligible for Malcolm Baldrige National Quality

Award Award • MBNQA awarded to two school districts in 2001MBNQA awarded to two school districts in 2001

ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 5

The Six Sigma PhilosophyThe Six Sigma Philosophy

Designed to foster data-driven Designed to foster data-driven management decisionsmanagement decisions

The Three C’sThe Three C’s• common metricscommon metrics• ““constant” communicationconstant” communication• culture changeculture change

ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 6

Six Sigma MetricsSix Sigma Metrics

cost reduction cost reduction productivity improvement productivity improvement market-share growth market-share growth customer retentioncustomer retention cycle-time reduction cycle-time reduction defect reduction defect reduction culture change culture change product/service development product/service development

ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 7

Six Sigma Management Six Sigma Management ApproachApproach

Genuine Focus on the CustomerGenuine Focus on the Customer Data- and Fact-Driven ManagementData- and Fact-Driven Management Process FocusProcess Focus Proactive ManagementProactive Management ““Boundaryless” CollaborationBoundaryless” Collaboration Pursue Success; Tolerate FailurePursue Success; Tolerate Failure

ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 8

Six Sigma Inputs and Six Sigma Inputs and Techniques Techniques

Voice of the CustomerVoice of the Customer Voice of the Market Voice of the Market Failure Mode and Effect AnalysisFailure Mode and Effect Analysis Cause and Effect DiagramsCause and Effect Diagrams Design of ExperimentsDesign of Experiments BenchmarkingBenchmarking House of QualityHouse of Quality

ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 9

Guidelines for Guidelines for Determining Six Sigma Determining Six Sigma

MetricsMetrics

Consider ways to measure Service as Consider ways to measure Service as well as Output factors.well as Output factors.

Practice continuous improvement of the Practice continuous improvement of the measurements.measurements.

Set measurement priorities that match Set measurement priorities that match resources (Prioritize for maximum resources (Prioritize for maximum potential gain.)potential gain.)

Stop measurements that are not needed Stop measurements that are not needed or useful.or useful.

ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 10

Selection of Six Sigma Selection of Six Sigma Improvement ProjectsImprovement Projects

There is a gap between current and There is a gap between current and desired/needed performance.desired/needed performance.

The cause of the problem is not clearly The cause of the problem is not clearly understood.understood.

The solution isn’t predetermined, nor is The solution isn’t predetermined, nor is the optimal solution apparent.the optimal solution apparent.

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Implementation of Six Implementation of Six Sigma Improvement Sigma Improvement

ProjectsProjects

Start small; don’t go for large scale Start small; don’t go for large scale changes at firstchanges at first

Select several well-defined projectsSelect several well-defined projects Expand projects after early Expand projects after early

successes are accomplishedsuccesses are accomplished

ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 12

Lean Enterprise Lean Enterprise

General term for the application of General term for the application of lean principles lean principles

Widespread success in Widespread success in manufacturing during past 15 years manufacturing during past 15 years

More recently - applied to More recently - applied to transactional endeavors - billing, transactional endeavors - billing, customer service, etc.customer service, etc.

Represents a culture change Represents a culture change

ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 13

Evolution of Lean Evolution of Lean ManufacturingManufacturing

Total Quality ManagementTotal Quality Management Toyota Production System Toyota Production System Six Sigma Process ImprovementSix Sigma Process Improvement Theory of ConstraintsTheory of Constraints Value Stream MappingValue Stream Mapping Womack and Jones - Womack and Jones - Lean ThinkingLean Thinking Rother and Shook - Rother and Shook - Learning to SeeLearning to See

ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 14

Wasteful PracticesWasteful Practices

WaitingWaiting TransportationTransportation OverproductionOverproduction ProcessingProcessing InventoryInventory MotionMotion Defective ProductsDefective Products

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Lean PrinciplesLean Principles

Pull instead of push scheduling Smaller batch sizes Shorter process times Value-added vs. non value-added Standard work

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Lean TechniquesLean Techniques

Line balancing One-piece flow Cellular layouts Value-added vs. non value-added Value stream mapping 5S Kaizen

ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 17

Introduction to the 5S’s - 1Introduction to the 5S’s - 1

SEIRI

(SIMPLIFY)

DISTINGUISH BETWEEN WHAT IS NEEDED AND KEPT AND WHAT IS UNNEEDED AND THROWN OUT

SEITON

(STRAIGHTEN)

ORGANIZE THE WAY WE KEEP NECESSARY THINGS, MAKING IT EASIER TO FIND AND USE THEM

ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 18

Introduction to the 5S’s - 2Introduction to the 5S’s - 2

SEISCO

(SCRUB)

KEEP FLOORS SWEPT, MACHINES CLEAN, AND ALL AREAS NEAT AND TIDY

SEIKETSU

(STABILIZE)

MAINTAIN AND IMPROVE THE STANDARDS OF THE FIRST THREE S’S

SHITSUKE

(SUSTAIN)

ACHIEVE THE HABIT OF PROPERLY MAINTAINING THE CORRECT 5S PROCEDURES

ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 19

Kaizen of an Assembly Kaizen of an Assembly Line 1Line 1

Before After

ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 20

Standard Work Flow Standard Work Flow DiagramDiagram

Used to help identify the flow of Used to help identify the flow of the operation(s) the operation(s)

Used as a layout for developing Used as a layout for developing an improved processan improved process

An excellent tool to use to An excellent tool to use to develop standard work develop standard work proceduresprocedures

ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 21

Cellular Layout ConceptCellular Layout Concept

The arrangement of manufacturing work The arrangement of manufacturing work cells to allow for a flowing processcells to allow for a flowing process

Eliminates the need for large inventory Eliminates the need for large inventory batchesbatches

In theory, the parts enter the beginning In theory, the parts enter the beginning of the cell as raw materials and exit the of the cell as raw materials and exit the cell as completed unitscell as completed units

ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 22

Value Stream MappingValue Stream Mapping

Learning to SeeLearning to See Hand-drawings preferredHand-drawings preferred Current state mapCurrent state map Future state mapFuture state map Man, machines, inventory,times, flow Man, machines, inventory,times, flow

combined into one graphiccombined into one graphic See example from ISE Capstone Design See example from ISE Capstone Design

CourseCourse

ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 23

Mapping the Current Mapping the Current StateState

ISE Project for a Local ManufacturerISE Project for a Local Manufacturer

ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 24

Lean Metrics (Quantitative)Lean Metrics (Quantitative)

Lead-times Lead-times Inventory Inventory Inventory TurnsInventory Turns Work In Process Work In Process Workable Floor Space Workable Floor Space Efficiency Efficiency Cycle TimeCycle Time

ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 25

Selection of Lean ProjectsSelection of Lean Projects

Use potential increase in net present Use potential increase in net present value to select which value stream to value to select which value stream to investigate firstinvestigate first

Analyze value stream map for Analyze value stream map for customers’ critical to quality issuescustomers’ critical to quality issues

Analyze value stream map for time Analyze value stream map for time trapstraps

Choose specific projects on the basis Choose specific projects on the basis of highest rate of returnof highest rate of return

ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 26

Proposition 1Proposition 1

Reducing process lead times and Reducing process lead times and variation in the time it takes to variation in the time it takes to complete a process has just as complete a process has just as much potential for improving a much potential for improving a company’s performance as company’s performance as reducing variation in quality. reducing variation in quality. (Lean Six Sigma, Michael George)(Lean Six Sigma, Michael George)

ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 27

Propositions 2 and 3Propositions 2 and 3

Lean and Six Sigma are Lean and Six Sigma are inextricably linked as partners in inextricably linked as partners in cost reduction, lead time, and cost reduction, lead time, and quality improvement.quality improvement.

Lean produces remarkable Lean produces remarkable successes -- but only in small successes -- but only in small pockets of activitypockets of activity

(Lean Six Sigma, Michael George)(Lean Six Sigma, Michael George)

ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 28

Proposition 4Proposition 4

Lean and Six Sigma should be Lean and Six Sigma should be applied together becauseapplied together because• A stand-alone Six Sigma program A stand-alone Six Sigma program

cannot dramatically increase process cannot dramatically increase process speed or decrease invested capitalspeed or decrease invested capital

• A lean enterprise that focuses on A lean enterprise that focuses on eliminating waste will not bring a eliminating waste will not bring a process under statistical controlprocess under statistical control

ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 29

Proposition 5Proposition 5

Some people believe lean enterprise methodologies must be completed before Six Sigma gains can be maximized.

James Bossert , July 2003 “Lean and Six Sigma--Synergy Made in Heaven” Quality Progress.

ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 30

Discussion of PropositionsDiscussion of Propositions

Audience members who support Six Sigma

Audience members who support Lean

Audience members who support neither philosophy

ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 31

AcknowledgementsAcknowledgements

Clyde Ingram, Rheem Manufacturing Clyde Ingram, Rheem Manufacturing Lean Training MaterialsLean Training Materials

Laura Brown, Industrial Engineering Laura Brown, Industrial Engineering Co-op StudentCo-op Student

Students enrolled in ISE 482 Senior Students enrolled in ISE 482 Senior Industrial Engineering Capstone Industrial Engineering Capstone DesignDesign

Mike Dunn, Bassett Furniture Lean Mike Dunn, Bassett Furniture Lean Project MaterialsProject Materials

ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 32

References and References and Recommended ReadingsRecommended Readings

George, Michael. (2002). Lean Six Sigma: Combining Six Sigma Quality with Lean Speed, New York: McGraw-Hill.

Rother, M. and Shook, J. (2003). Learning to See: Value Stream Mapping to Create Value and Eliminate Muda, Brrookline, MA: The Lean Institute.

Pande, P, Neuman,R.P., and Cavanagh,R.R. (2000). The Six Sigma Way, New York:McGraw Hill.

Bossert , James. ( July 2003) “Lean and Six Sigma--Synergy Made in Heaven” Quality Progress.

Goldratt, Eliyahu M., (1994). The Goal: A Process of Ongoing Improvement, second edition. Great Barrington, MA: North River Press.

Womack, James P. and Daniel T. Jones. (2003). Lean Thinking: Banish Waste and Create Wealth in Your Corporation. New York: Simon & Schuster.

ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 33

Contact InformationContact Information

Burtner_J@Mercer.eduBurtner_J@Mercer.edu Mercer University Mercer University

School of Engineering School of Engineering Macon, GA Macon, GA

Phone (478) 301- 4127Phone (478) 301- 4127 Fax (478) 301- 2331Fax (478) 301- 2331