six sigma and lean operations
DESCRIPTION
Lean Six SigmaTRANSCRIPT
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Continual Improvement Continual Improvement Methods with Six Sigma, Methods with Six Sigma,
Lean, and Lean Six SigmaLean, and Lean Six Sigma
Lakshmi ChavaSwetha Munagala
Stephen Rich
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Major TopicsMajor Topics Rationale for Continual Improvement Management’s Role in Continual Improvement Essential Improvement Activities Structure for Quality Improvement The Scientific Approach Identification of Improvement Needs Development of Improvement Plans Common Improvement Strategies Additional Improvement Strategies The Kaizen Approach Goldratt’s Theory of Constraints The CEDAC Approach Six Sigma Concept Lean Operations Lean Six Sigma
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Continual ImprovementContinual Improvement
One of the most fundamental elements of total quality.
This concept applies to processes and the people who are operating them as well as to the products resulting from the processes.
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Rationale for Continual Rationale for Continual ImprovementImprovementContinual Improvement is
fundamental to success in the global market place.
Customer needs are not static; they change continually.
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Management’s Role in Management’s Role in Continual ImprovementContinual ImprovementIn his book Juran on Leadership for
Quality, Joseph Juran writes:“ The picture of a company reaping big rewards through
quality improvement is incomplete unless it includes some realities that have been unwelcome to most upper managers. Chief among these realities is the fact that the upper managers must participate personally and extensively in the effort. It is not enough to establish policies, create awareness, and then leave all else to subordinates. That has been tried, over and over again, with disappointing results”.
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Cont’d…Cont’d…Management should play necessary
role in continual improvement by doing the following:
• Establishing an organization-wide quality council.
• Working with the quality council.• Providing the necessary moral and
physical support.• Scheduling periodic progress
reviews.• Building continual quality
improvement in to the regular reward system.
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Essential Improvement Essential Improvement ActivitiesActivitiesMaintain Communication.Correct obvious problems.Look upstream.Document problems and
progress.Monitor changes.
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Customers Needs Change Customers Needs Change ContinuallyContinually
“ Quality improvement is needed for both kinds of quality: product features and freedom from deficiencies”.
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Improvement Must Be Improvement Must Be ContinualContinual
“Improve constantly and forever the system of production and service. Improvement is not a one-time effort. Management is obligated to continually look for ways to reduce waste and improve quality”.
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Improvement Is Not Putting Improvement Is Not Putting Out FiresOut Fires“Putting out fires is not
improvement. Finding a point out of control, finding the special cause and removing it is only putting the process back to where it was in the first place. It is not improvement of process”.
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StructureStructure for Quality for Quality ImprovementImprovementEstablishing a quality council.Develop a statement of
responsibilities. Formulating policy as it relates to quality. Setting the benchmarks and dimensions. Establishing the team and project selection
processes. Providing the necessary resources. Implementing the project. Establishing quality measures for monitoring
progress and undertaking monitoring efforts. Implementing appropriate reward and recognition
program.
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Cont’d…Cont’d…Establish the necessary
infrastructure.
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The Scientific ApproachThe Scientific ApproachCollect Meaningful Data.Identify Root Causes of problems.Develop Appropriate Solutions.Plan and Make Changes.
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Collecting Meaningful DataCollecting Meaningful Data
Before collecting meaningful data, decide exactly
What data are needed How they can be best collected Where the data exists How they will be measured How you will know the data are
accurate
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Identify Root Causes of Identify Root Causes of ProblemsProblemsToo many resources are wasted by
organizations attempting to solve symptoms rather than problems. Total quality tools will help in separating problems from causes.
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Develop Appropriate Develop Appropriate SolutionsSolutions Collect the relevant data Make sure they are accurate Identify root causes Develop a solution that is
appropriate
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Plan and Make ChangesPlan and Make Changes Look a head Anticipate needs What resources will be used to
satisfy them and Anticipate problems and consider
how they should be handled
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Importance of Statistical Importance of Statistical ThinkingThinking
“Statistical thinking is critical to improvement of a system. Only by use of properly interpreted data can intelligent decisions be made”.
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Improvement Can Be Improvement Can Be MeasuredMeasuredImprovement can be measured and
monitored by using performance indicators. Some of the examples are listed below:
Number of errors or defects Number of or level of need for repetitions of work
tasks Efficiency indicators Number of delays Duration of a given procedure or activity Response time or cycle Useability/cost ratio Amount of overtime required Changes in work load Vulnerability of the system Level of criticalness Level of standardization Number of unfinished documents
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Identification of Identification of Improvement NeedsImprovement NeedsApply multi votingIdentify customer needsStudy the use of timeLocalize problems
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Development of Development of improvement plansimprovement plans
Understand the processEliminate errorsRemove slackReduce variationPlan for continual improvement
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Common improvement Common improvement strategiesstrategiesEstablish boundaries for the
processFlowchart the processMake a diagram of how the work
flowsVerify your workCorrect immediately any obvious
problems identified
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Standardize the processStandardize the process• Identify the currently known best
practices and write them down• Test the best practices to determine
whether they are in fact the best, and improve them if there is room for improvement
• Make sure that everyone is using the newly standardized process
• Keep records of process performance, update them continually, and use to identify ways to improve the process even further on a continual basis
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Eliminate errors in the process: Streamline the processReduce sources of variationBring the process under
statistical control
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Improve the design of the Improve the design of the processprocess• Define the objectives of the
experiment• Decide which factors are going to be
measured• Design an experiment that will
measure the critical factors and the answers the relevant questions
• Set up the experiment• Conduct the experiment• Analyze the results• Act on the results
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Total manufacturing Total manufacturing managementmanagement• Reduced lead time• Flow production• Group technology• Level production• Synchronized production• Overlapped/parallel production• Flexible schedules• Pull control
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• Visual control• Stockless production• Jidoka• Reduced setup time• In-process control• Quality improvement• Total cost cycles• Cost curves
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Mushroom conceptSuppliers as comakersTotal industrial engineering Total productive maintenance
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Kaizen approachKaizen approach
Kaizen value systemRole of executive managementRole of middle managersRole of supervisorsRole of employeesKaizen and quality
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Elements of kaizenElements of kaizenCustomer focusTeamworkJust-in-timeQuality circlesAutomationLabor/ management cooperationTotal productive maintenance
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Kaizen Five-step planKaizen Five-step planStraighten up: involves separating
necessary from unnecessary Put things in order: tools and
materials in proper place and in order
Clean up: keeping clean to proceed in efficient manner
Personal cleanliness: employees being neat to appear better
Discipline: careful adherence to standardized work procedures.
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The five W’s and One HThe five W’s and One H
WHOWHATWHERE
HOWWHENWHY
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Five M checklistFive M checklist
MeasurementMethodsMaterialMachineMan
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ActivityActivity
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Goldratt’s Theory of Goldratt’s Theory of ConstraintsConstraintsAn approach to managing that helps
organizations continually improve.It is an intuitive (instinctive)
framework for managing organizations.
Starts with:◦1. clearly defined goals for the
organization.◦2. establishing measurements to
determine the impact of any action on those goals.
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What Is So Different?What Is So Different?
Does not apply the traditional system for measuring results (profits)
Uses throughput, inventory, and operating expense.
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What’s Different?What’s Different?It is based on the assumption
that every organization faces constraints.
Greatest negative impact on performance is policies as opposed to materials and resources.
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Goldratt Defines RestraintGoldratt Defines Restraint
“anything that limits an organization from achieving higher performance vis-à-vis (in comparison with) its goal.
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How Is It Applied?How Is It Applied?Identify: any factor that tends to
constrain.
Exploit: how can the factor be turned into positive factors, eliminated, or circumvented.
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CEDAC ApproachCEDAC ApproachCEDAC = cause-and-effect with
additional cards.3 conditions must exist for continual
improvement to occur.◦A reliable system (standardized and
reliable)◦A favorable environment (favorable to
improvement)◦Practicing as teams (Total Quality is
performed by teams. Teams must practice)
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CEDAC DiagramCEDAC Diagram
http://syque.com/improvement/Cause-Effect%20Diagram.htm
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10-Step Process of 10-Step Process of ImplimentationImplimentationDraw Basic DiagramSelect the focus of improvement effortsName project leaderEstablish measurement methodEstablish improvement goal and dateFormat effect side of the diagramCollect fact cards for the cause side
(each team member fills out cards with their ideas)
Collect improvement cards Implement and test ideasSelect cards for standardization
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Six Sigma ConceptSix Sigma Concepthttp://www.youtube.com/watch?v
=LNtEW4DVRkE&feature=relatedIntroduced by Motorola in the
mid-1980’sPurpose: to improve the
performance process to where defects rate was 3.4 per million or less.
Designed for high volume production settings.
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Six Step ProtocolSix Step Protocol
1. Identify the product characteristics wanted by customers.
2. Classify the characteristics in terms of their criticality.
3. Determine is the classified characteristics are controlled by part and/or process.
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ProtocolProtocol4. Determine the maximum
allowable tolerance for each classified characteristic.
5. Determine the process variation for each classified characteristic.
6. Change the design of the product, process, or both to achieve Six Sigma performance.
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Six Sigma: The NameSix Sigma: The NameFrom the concept of standard
deviation signified by lowercase Greek letter sigma: σ
Processes and outputs typically measure in their standard deviations from the mean (ideal point).
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What Does That Mean?What Does That Mean?Most good companies operate
between 3 and 4 sigma.Or: 99.73% of process output will
fall between± 3 standard deviation at 3 sigma or 99.9937% at 4 sigma.
3 sigma operation will yield 2700 defective parts for every 1 million produced.
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Six Sigma and Total Six Sigma and Total QualityQualitySix Sigma is an extension of Total
Quality.Six Sigma is a total quality
strategy, like all others, to achieve: superior performance, that is continually improved, forever.
Six Sigma is achieved by improving process performance.
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Lean OperationsLean OperationsLean=Lean Manufacturing=Lean
OperationsLean: originally a manufacturing
concept thus lean manufacturing.Lean Operations: because it is
found to produce good results in both manufacturing AND service sectors.
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Purpose of AdoptingPurpose of AdoptingTo produce better products or
deliver better services using less resources.
Doing more with less and doing it better.
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Defining LeanDefining Lean
Based on the Toyota Production System (TPS).
Lean Operation: a better product is developed or a better service is delivered by using less of everything required.
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DefinitionDefinitionLean is: being flexible enough to
get the right things, to the right place, at the right time, in the right amounts.
The Heart: reduction of waste and the improvement of workflow.
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Lean Focuses on WasteLean Focuses on WasteOverproduction WasteInventory WasteMotion WasteTransportation WasteOver-processing WasteDefects WasteWaiting WasteUnderutilization Waste
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Tools and Techniques of Tools and Techniques of LeanLeanFive-S workplace organizationVisual workplace systemsLayoutStandardized work (SW)Point of usage storage (POUS)Batch size reductionQuick changeover(QCO)Poka-yoke
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More Tools:More Tools:Self-inspectionAutonomationPull systems/kanbanCellular and flowJust-in-time (JIT)Total productive maintenance
(TPM)Value stream mapping (VSM)Change managementTeamwork
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Lean Six SigmaLean Six SigmaCombining Lean and Six Sigma
Key Concepts:◦Green Belts◦Black Belts◦Master Black Belts◦Champions◦DMAIC Roadmap (or lean Six Sigma)
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Where to Use?Where to Use? In Manufacturing: In Manufacturing: Especially effective for the
following types of continual improvement projects:◦Accuracy in invoicing◦Capacity of line and product◦Lead time on delivery◦Production◦Replenish downtime on equipment
and lines
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Where to Use?Where to Use? In Service Sector: In Service Sector: Accuracy in invoicing, delivery,
and productCapacity of service area, call
center, and productLead time on delivery and call
hold timeDowntime on equipment,
servers, and lines
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DMAIC RoadmapDMAIC RoadmapThe Nucleus of Six Sigma: Define,
Measure, Analyze, Improve, and Control.
Five Phases are constantSteps, tools and outputs of each
phase may vary somewhat.
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DefineDefine1. initiate the project2. Define the process3. Determine Customer
requirements4. define key process output
variables
Possible tools: value stream maps, affinity diagrams, brainstorming, surveys
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MeasureMeasure1. Understand the process2. Evaluate risks on process inputs3. Develop and evaluate
measurements systems4. measure current performanceResults: Knowing your starting
point, verification of measurement systems, current capabilities
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AnalyzeAnalyze1. Analyze data to prioritize key
input variables2. Identify wasteResults: root causes reduced.
Prioritize potential key inputs, and list specific wastes.
Tools: Five-S (sort, store, shine, standardize, & sustain)
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ImproveImprove1. verify critical outputs2. Design Improvements3. Pilot the new processResults: an action plan for
improvement, future state process maps, control maps, new process design/documentation
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ControlControl1. Finalize the control system2. Verify long-term capabilityResults: a control system,
improvement validated for long term, identified continual improvement opportunities, team recognition
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BibliographyBibliographyAll information obtained from:
Goetsch, D.L., Davis, S.B. Quality Management for organizational excellence: introduction to total quality. 2006. 5th edition
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Why Do We Ned Six Why Do We Ned Six Sigma?Sigma?
Interview:
http://www.youtube.com/watch?v=7rUQbTsc_ms