learn about lean six sigma and blended e-learning and earn
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20th Anniversary ConferenceSinclair Community College
Dayton, OH Wednesday, October 1, 2008
Learn AboutLean Six Sigma and Blended e-Learning
and Earn Your “White Belt” Certification
in One Easy Lesson!
Diane RitterDirector of Business Excellence
The Quality Group
AgendaAgenda
PART I: Introduction to Lean Six Sigma– What is Lean Six Sigma?– How is Lean Six Sigma Different?– Lean Six Sigma Benefits– Concept of Process– Lean Six Sigma Methodology: DMAIC– Ensuring Success– White Belt Exam
PART II: Introduction to Blended e-Learning– Blended Learning– Q & A
PART I:PART I:Introduction to Introduction to Lean Six SigmaLean Six Sigma
Are You Achieving Your Are You Achieving Your OrganizationOrganization’’s Purpose?s Purpose?
• What’s your organization’s purpose?
• Who are your customers?• What do they want?• Are you delivering what they want?• If not, what is it costing
your organization?• What can we do about it?
In Business TodayIn Business Today
• Technology edges last less than a year
• Global competition exists in all markets
• Quality is a given; the new advantage goes to the swiftest and the lowest cost producer
• There are better ways of conducting business
Business SuccessBusiness Success
CI brings together L & SSCI brings together L & SS
Lean Six Sigma
• Taiichi Ohno of Toyota was the primary architect.
• Developed to attack the eight types of manufacturing waste.
• Tools and methods evolved by trial and error over 40 years resulting in the Toyota Production System or JIT.
• Motorola is credited with the popularization of Six Sigma in 1987.
• Based on Shewhart(20’s), Deming & Juran(50s), plus others
• General Electric put Six Sigma into practice in the mid 1990s. This was a turning point for Six Sigma.
• Data analysis and statistical tools
What is Lean?What is Lean?
Lean is a concept and methodology that focuses on __________________________ _____ _____
__________________ that promotes efficiency by
______________________ __________ and ______--_____ _____
____________ ____________________.
Types of LSS WasteTypes of LSS Waste
D
O
W
N
T
I
M
E
The Many Facets The Many Facets of Six Sigmaof Six Sigma
PhilosophyPhilosophyBusiness Business StrategyStrategyBenchmarkBenchmarkMethodMethodToolsToolsMetricMetric
ValueValueGoalGoal
Part of the Culture: “The way we work”Philosophy
Means to meet organizational goalsBusiness Strategy
Compare to others: apples-to-applesBenchmarkSystematic Process: DMAIC & DMEDVIMethodLean, Statistical, Team Decision MakingTools
We calculate & measure it for any processMetric
Program that delivers $Value3.4 Defects per Million OpportunitiesGoal
66σσ
Lean & Six Sigma GoalsLean & Six Sigma Goals
Lean and Six Sigma have a different focus, but they share the same goals
Lean and Six Sigma Lean and Six Sigma ––Process and ToolsProcess and Tools
Lean Six Sigma is NOTLean Six Sigma is NOT……
• It’s not just STATISTICS
• It is not ONLY a cost-reduction program, although cost-reduction is a benefit
• It is not a rigid approach, but flexible to meet the specific needs and goals of an organization
How is Lean Six Sigma How is Lean Six Sigma Different? Different?
• Management• Training• Measurements• Project Selection• Roadmap
How is Lean Six Sigma How is Lean Six Sigma Different? Different?
• Management• Training• Measurements• Project Selection• Roadmap
How is Lean Six Sigma How is Lean Six Sigma Different? Different?
• Management• Training• Measurements• Project Selection• Roadmap
How is Lean Six Sigma How is Lean Six Sigma Different? Different?
• Management• Training• Measurements• Project Selection• Roadmap
How is Lean Six Sigma How is Lean Six Sigma Different? Different?
• Management• Training• Measurements• Project Selection• Roadmap
Process FocusedProcess Focused
• A process is a sequence of events/steps which lead to a particular end product or service.
Equipment
People
Materials
Policies
Environment
End Product
or Service
End Product
or Service
Product or
Service
Product or
Service
Process Step
Process Step
• • •
Inputs Value Add Output/Input Final Output
Process ConceptsProcess Concepts
•• 94%94% of problems are in the process; 6%6% are with the workers or due to special causes.
• Teams can improve processes to solve problems.
•• WorkersWorkers are responsible for doing the work within the system; ManagersManagers are responsible for improving the system.
• Workers know where to find the problems and the solutions.
Why be so Good?Why be so Good?99% just isn99% just isn’’t good enough!t good enough!
3.8 Sigma(99% Good)
2 short or long landings at most airports each day15 minutes of unsafe drinking water each day750 dropped babies in the US each week200,000 wrong drug prescriptions each year
6 Sigma(99.99966% Good)
1 short or long landing every 5 years1 minute of unsafe drinking water every 7 mo.13 dropped babies a year
68 wrong prescriptions per year
Another ExampleAnother ExampleAnother Example………
Lean Six Sigma: Lean Six Sigma: From Apples & OrangesFrom Apples & Oranges……
• Provides a single measure that can be used to compare the performance of different operations.
Process PerformanceCall Servicing 32+/-5 second average speed of answerBilling 98+/-1% accuracyAccounts Receivable 33+/-2 days average agingCustomer Service 82% Rated 4 or 5 on responsiveness
• Which Process is Performing Best?
Lean Six Sigma: Lean Six Sigma: ……to Apples to Applesto Apples to Apples
Six Sigma translation!
Six Sigma translation!
• Now which process is the best?
Process Sigma PerformanceCall Servicing 3.1 SigmaBilling 3.8 SigmaAccounts Receivable 4.2 SigmaCustomer Service 2.6 Sigma
• Now, where would you invest?
Radio Station WIIFMRadio Station WIIFM
• Participate in decision making
• Work as a team to improve your processes
• Increase pride and satisfaction in job performance
• Create a more interesting and challenging job
• Apply practical education directly to the job
• Expand potential for career opportunities and advancement. WIIFMWIIFM
Lean Six Sigma SuccessLean Six Sigma Success
Lean Six Sigma
Success
Lean Six Sigma
Success
What are the driving and restraining forces to implementing Six Sigma at your organization?
DMAIC PrinciplesDMAIC Principles
• D______ opportunities
• M_______ current performance
• A_______ root cause of problems
• I_______ the process
• C_______ process performance to ensure process quality
DMAIC: The DMAIC: The MediMedi--Lift Lift Helicopter Co.Helicopter Co.
• Manufacturer of single and twin-engine helicopters, known for:– reduced maintenance– higher safety– lower noise
• Their customers provide search & rescue services
• Company commitment to offering the best-quality, best-value helicopters withstate-of-the-art technology
DEFINEDEFINE
Tools:– Project/Team
Charters– SIPOC– VOC– ID CTQ’s/Y’s– Pareto Chart– Process Map/Value
Stream Map (current)
Deliverables:– Problem Statement– Verified Project– Initial Financial
Validation– Initial Team Meeting
MeasureMeasure
Deliverables:– Detailed process
description– Process
performance– Process baseline
capability
Tools:– Identify Process
Paramters/X’s– Pareto Chart– Run Chart– Histogram– Baseline Capability– Cost of Poor Quality– Measurement
System Analysis
DMAIC Simulation: Paper DMAIC Simulation: Paper HelicoptersHelicopters
Using paper helicopter #1 (longer rotors ) collect 5 data points.
Fold
AnalyzeAnalyze
Deliverables:– Understand data
relationships– Validate input and
output process variables
– Prioritize input variables as sources of variation
– Validate Root Cause
Tools:– Y=f(X)– Scatter
Diagram/Correlation Analysis
– Cause & Effect Diagram/ Matrix
– Histogram– FMEA– Box Plot– Multi-vari Charts– Basic Statistics– Hypothesis Testing– Analysis of Variance
(ANOVA)– Update Process Map/Value
Stream Map (Future)
ImproveImprove
Deliverables:–Confirmed
correlations between process input and output variables
–Defined process improvement and capability
–Plan for improvement implementation
Tools:– Solution Design Matrix– DOE– Kaizen Event– Standard Work– Visual Management– Error Proofing– Changeover Reduction– TPM– Workplace Design &
Layout– Flow & Pull Systems– Gantt Chart– Force Field Analysis
DMAIC Simulation: Paper DMAIC Simulation: Paper HelicoptersHelicopters
Using paper helicopter #2 (shorter rotors ) collect 5 data points.
Fold
ControlControl
Deliverables:– Formal Control Plan– Detailed
documentation of process improvements
– Confirm new process capability
– Communication of results
– Final financial review of results
– Final project report
Tools:– Control Plan– Control Chart– Training– Work Standards
(SOPs)– Leverage ideas
Active Lean Six Sigma Active Lean Six Sigma Programs:Programs:
Manufacturing• AlliedSignal/
Honeywell• Motorola• Black & Decker• Whirlpool• Bombardier• Seagate• Texas Instruments• Raytheon• Ford Motor Co.• Owens Corning• Caterpillar• Toshiba• Lockheed Martin• Sun Microsystems• Nokia• And many others
Conglomerates• AT&T• GE• TRW• ABB (Asea Brown
Bovari)Pharmaceuticals• Johnson & Johnson• Wyeth Ayerst LabsE-Commerce• AmazonRetail• Circuit City• Home DepotHealthcare• Mount Carmel
Health Systems• Virtua Health
Financial/Services• American Express• Bank of America• Citibank• GE Asset Mgmt.• GE Capitol Services• GE Global Property
& Casualty• J.P. Morgan Chase
& Co.• Mellen Bank• Merrill Lynch• American Red
Cross• United AirlinesHospitality• Starwood Hotels• Ritz Carlton
The Benefits of Lean Six The Benefits of Lean Six SigmaSigma
• Improved bottom line for the business
• Factually driven solution, rather than emotion and “gut feel”
• Supports implementation of the strategic business plan
• Systematic elimination of waste and poor quality issues
• Helps develop leaders
• Increased customer satisfaction
Key Actions for Success in Key Actions for Success in Lean Six SigmaLean Six Sigma
Management commitment and staff support
Greatest impact when linked to effective, cyclical strategic planning
Identify high impact, revenue generating projects that align with strategic plans
Invest in training for key roles
Design and implement a metric system for tracking progress
Consistently conduct business reviews to maintain focus and direct activities
Final ExerciseFinal Exercise
• 26 questions/answers• 1 sheet of paper
© 2008 The Quality Group LEAN SIX SIGMA OVERVIEW - 39
Lean Six Sigma Lean Six Sigma -- SummarySummary
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© 2008 The Quality Group LEAN SIX SIGMA OVERVIEW - 40
NotesNotes