lean six sigma introduction

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Lean Six Sigma - Introductionwww.theapprentiice.com

Hi,Welcome to the Lean Six Sigma Training by the Apprentice. This is the Introductory module of Six Sigma. In this module, you would be presented with the basic concepts of Six Sigma. Go thru the module very attentively as there would be an exam at the end of the course .1

Learning ObjectiveUnderstanding LeanPrinciples of LeanHistory of LeanThe Seven WastesUnderstanding Six SigmaHistory of Six SigmaWhy & how do we do Six Sigma ?Six Sigma Organization

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The learning objectives of the Lean Awareness program are:

{{Pause=0.5}}Understanding Lean{{Pause=0.5}}Principles of Lean{{Pause=0.5}}History of Lean{{Pause=0.5}}The Seven Wastes{{Pause=0.5}}Lean Temple, where in we will understand :{{Pause=0.5}}Stability, 5S, Kaizen, Hejunka, standard work,Talk time, JIT, JidokaAnd, last but not the least Integration of Lean & Six Sigma

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Understanding Leanwww.theapprentiice.com

Lets begin3

What is Lean?

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First of all, lets understand Lean4

How Lean Emerged?www.theapprentiice.com50 years backIn 1991

5Lean manufacturing was developed by the Japanese automotive industry, with a lead from Toyota and utilising the Toyota Production System (TPS), following the challenge to re-build the Japanese economy after World War II. The concept of lean thinking was introduced to the Western world in 1991 by the book The Machine That Changed the World written by Womack, Jones, and Roos. Lean is a philosophy that seeks to eliminate waste in all aspects of a firms production activities: human relations, vendor relations, technology, and the management of materials and inventory.

Principles of Lean are being utilized in all sector now; its not limited to Manufacturing any more

Its not a new phenomenon, Japanese auto manufacturers have been developing Lean for over 50 years

Competing for the Future (with Gary Hamel)

Why Lean ?www.theapprentiice.com

The first question that comes to people mind when they hear about Lean is - why do Lean ? Lets understand the market scenario these days first. Gone are the days where selling price was fixed by the manufacturers. Now-a-days, price is fixed by market forces. There is immense competition in the market. So, there is a pressure to reduce the SP all the time.Now let us look at the cost; this primarily consists of raw material cost, cost of manpower , depreciation,& cost of utilities. We cant do much about the depreciation; but, if we look at the other cost, its basically the cost of resources employed to manufacture any product. So, the more efficiently, we use our resources, the more profitable we become.And, Lean helps us to be more efficient. It has tools that help us find & eliminate waste from the process. Lean changes the approach to work. Lets see further, how .6

Approach to LeanFROMTOManaging resultsManaging the process & results

The 5 WhosThe 5 Whys

Problem-hidingProblem-solving

P-D-P-D tail-chasingP-D-C-A Cycle

Lean helps organizations move from managing results to managing the process & the resultsIt changes the focus from the Whos to the whys or instead of finding fault with the people, it teaches us find fault with the process.Leans approach is towards problem solving & not hiding the problem under the carpet. This is because respect for people in one of the pillar of Lean. People are not criticized for bringing the issues, rather they are encouraged.After adopting lean, organizations dont need to choose between control & flexibility ; they can aim for both.In the traditional way of working, its plan & do tail-chasing, with Lean organization employ the full cycle of Plan, Do , Check , ActIn the next slide, we will look at the 5 principles of Lean

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8The 5 principle of Lean are Value, the Value Stream , Flow , Pull & Perfection. We will look at what each of these imply in the subsequent slides

ValueValue is best defined as what is the customer willing to pay for Value-adding activities transform the product closer to what the customer actually wants. An activity that does not add value is considered to be waste.

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9Value is best defined as what is the customer willing to pay for . Value-adding activities transform the product closer to what the customer actually wants. An activity that does not add value is considered to be waste. We will look at the term waste in more detail in the subsequent slides.There are three more definitions that we must make ourselves familiar with, while learning Lean. The first one is value adding Process. A value adding process step is the one that transforms or shapes a product or service which is eventually sold to a customer. Those process steps that take time, resources, or space, but do not d value to the product or service are termed as non-value adding.Lastly , A Non-Value ding process that is required by law, regulation, or customer request to operate the business is known as Business Value adding Process

Tasks can only be defined as Value-ding by the Customer

RegistrationWaitingPre-screenDiagnosisHow long will you spend at the hospital?

What is the value?How long will you be at the park?

Ride the ridesWait in lineEat the foodPlay the games

What is the value?Tasks can only be defined as Value-adding by the Customer ELS CORE CONCEPTSValuewww.theapprentiice.com

10Lets understand the concept of value a little more deeply.

In the examples shown here, what is the value? (Little pause required here)In case of the Emergency room, diagnosis is the value & in case of the Amusement park , the rides)

When we start to look at what we do from the lens of the what the customer values, we view our work activities in a new light. We want to spend less time on what the customer does not value and look for ways to reduce the time spent on these activities or try to eliminate them all together.The next slides has a exercise that will further strengthen the concept of Value.

Distinguish VA from NVA ActivitiesActivitySelecting candidates to interview for hireCompleting expense reportMachining partAssembling product partsWalking to printer to pick up documentsTransporting parts from one machining process to the nextWaiting for a response from a supplier

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11Distinguish VA from NVA Activities. Note that non-value added activities are also termed as Waste. Lets understand Waste in more details in the subsequent slides.

What is waste?

MudaMuraMuriAny activity that consumes resources without creating value for the customerUnevenness in a process; for example an uneven work pace causing people to hurry and waitOverburdening of resources (such as people or equipment)Types of Waste Descriptions123ELS CORE CONCEPTSwww.theapprentiice.com

12We have already learnt that non-value adding activities are called Waste. In Japanese language, its called Muda . There are two other wastes that Lean talks about. These are Mura & Muri.

Mura is defined as Unevenness in a process; for example an uneven work pace causing people to hurry and wait

Muri is strain or Overburdening of resources (such as people or equipment)Lets understand Muda in detail in subsequent slides.

The Seven WastesWaste is called muda in Japanese

Waste is strain on an organization's time & resources

Waste does not add value to the customers

The more an organization can reduce waste, the better T - I M W O O - DValue Added (VA)Non Value Added (NVA)www.theapprentiice.com

Recall that Value is best defined as what is the customer willing to pay for . Value-adding activities transform the product closer to what the customer actually wants. An activity that does not add value is considered to be wasteWaste is called muda in Japanese

Waste is strain on an organization's time & resources

Waste does not add value to the customers

The more an organization can reduce waste, the better

Activities can be broadly classified as Value-Added or Non-Value Added & the Seven Wastes can be remembered using the Acronym TIMWOODT is for TransporationI is for InventoryM is for motionW is for WaitingO is for Over-ProcessingNext O stands for OverproductionD is for Defects

Lets understand this with some examples in subsequent slides

The Seven Wastes

Transportation is the unnecessary movement of materials or information. Movement of materials between Warehouses & PlantsMoving materials, Files, documents & mailsInventory is any material or supplies in excess of the appropriate quantity, at appropriate time. Excess Raw material, In-process (WIP) and finished goodsLong Cycle times, carrying costRisk of obsolescence, damageMotion is any movement of people that does not add value to the product or service. In-efficient placement of frequently used supplies/toolsPeople spend more time moving around than adding value to customer

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Transportation is the unnecessary movement of materials or information. For example :Movement of materials between Warehouses & PlantsMoving materials, Files, documents & mails

Inventory is any material or supplies in excess of the appropriate quantity, at appropriate time. For example:Excess Raw material, In-process (WIP) and finished goodsLong Cycle times, carrying costRisk of obsolescence, damage

Motion is any movement of people that does not add value to the product or service. For example:In-efficient placement of frequently used supplie

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