LEAN SIX SIGMA OVER VIEW

PowerPoint Presentation LEAN SIX SIGMA OVER VIEW KIEU VAN TON Page 1 of 38 Classroom Logistics • You will get acquainted with fellow class participants • You will get to know who the Instructors are •.

LEAN SIX SIGMA OVER VIEW KIEU VAN TON Page of 38 Classroom Logistics • • • • • • You will get acquainted with fellow class participants You will get to know who the Instructors are We will make sure that you have all the proper training materials and software You will understand what is an adult learning environment We will establish a baseline of statistical knowledge You will begin to develop an understanding of the Lean Six Sigma Improvement Processes • We will present an overview of the Lean Six Sigma material to be covered this course • You will understand the benefits of becoming a Green Belt Page of 38 Classroom Logistics • Name • Business Group/plant/location • Years experience • Hobby/interest • Project problem statement • Expectations (let’s capture these on flipcharts) • Please limit your introduction to less than 60 seconds Page of 38 Classroom Logistics • Expectations are that you: • Have a project and Project Charter • Will actively participate in class • Will follow the Code of Conduct • Will come to class prepared Page of 38 What is six sigma? • A statistical measure for determining process capability (Six Sigma Quality level equates to 3.4 defects per million opportunities) • A proven set of tools and tactics for reducing variation • A successful business strategy (in use by GE, Motorola, Texas Instruments, Eli Lilly, Roche, Bank of America….) • A comprehensive philosophy about operational excellence • A complementary discipline to existing tools • Focus on Customer Satisfaction, Improving Process Capabilities, and Organization-wide Involvement Page of 38 COST OF QUALITY Cost Impact of Quality Level on Cost Optimum Sigma Quality Level Page of 38 Why We Need Six Sigma Defects per Million 1,000,000 Cost of Poor Quality is 25% to 40% of Sales Revenue 100,000 10,000 Average Company 1,000 100 10 Best-in-Class Sigma Quality Level Scale of Measure The Basic Objective Page of 38 What is six sigma? Six Sigma Sigma Value Faults (or event) Per million opportunity Yield % 691462 30.85 308538 69.146 66807 93.319 6210 99.379 233 99.9769 3.4 99.99966 Page of 38 INPUTS ( Sources of Variability) People Material PROCESS ACTIVITY PROCESS ACTIVITY OUTPUTS ( Measures of Performance) Perform a service Equipment Perform a product Policies Procedures Methods A Blending of Inputs to Achieve the Desired Outputs Environment Page of 38 Complete a task Scrap = i/p = 100 Scrap = Scrap = 99 Extrude 97 Press Scrap = 94 Trim o/p = 93 Inspect Rework = Rework = 11 Stage Logistic Yield 99/100 = 99% 97/99 – 98% 94/97= 97% 93/94 = 99% First Time Yield 99/100 = 99% 89/99 = 90% 83/97 = 88% 93/94 = 99% Page 10 of 38 Control CONTROL • Key question - Once defects have been reduced, how we ensure that the improvement is sustained? - What system need to be in place to check that the improved procedures stay implemented? - What we set up to keep it going even when things changes? - How can improvements be shared with other relevant people in the company? Page 24 of 38 Control CONTROL • TOOLS: • • • • PROCESS FLOW DIAGRAM CONTROL CHART CONTROL PLAN CHECK SHEET 78.35 78.3 78.25 78.2 78.15 78.1 78.05 78 77.95 77.9 77.85 77.8 Series4 Series5 Series6 Series7 Series8 Series9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 25 of 38 SIX SIGMA AND GURU Guru Principal Idea/Concep of Relevent to Six Sigma Deming 14 points, PDCA Circle, Obstacles to transformation, deadly sins Juran Quality trilogy, 6-stage planning, 7-stage control, 8-stage improvement Crosby absolutes, C’s of improvement, 14-step improvement process Feigenbaum management commitments, forces Taguchi Design improvement and problem solving using experimentation projects Page 26 of 38 Perfection • Opportunities for improvement are identified • • • • • • 27 Reduction of effort Reduction of time Reduction of space Reduction of cost Reduction of mistakes Increasing customer satisfaction Page 27 of 38 Mission Statement • Develop the Ability: • • • • • To recognize and identify waste To have the courage to call it waste To have the desire to eliminate it To eliminate waste Understand that waste simply: • Raises cost • Produces no corresponding benefit • Threatens all of our jobs 28 Page 28 of 38 Seven Wastes • Waste in Transportation • Waste of Inventory • Waste of Motion • Waste of Waiting (Idle Time) • Waste of Over Production • Waste of Over Processing • Waste of Defects/Rework 29 Page 29 of 38 What Are Your Goals? The New Approach Synchronized One-Piece Flow, Pull Maintenance Excellence Defect-free, Whys Waste-free, Std Work Teamwork, Cells, Visual Philosophy Machines Quality Processes People Batch, Push Man Per Machine, Run to Failure Detection, % Defective Non-Value Added, Complex Individual, Piecework The Old Approach 30 Page 30 of 38 The Lean and Six Sigma The Lean Enterprise Goals Six Sigma Goals • Are Absolute • Are Relative • Single piece flow • Give the customer what they want • Zero WIP • High Sigma Quality Levels • 100% VA time, no wait time • Minimize variability • Zero downtime • Run every product, every day 31 Page 31 of 38 The Synergy of Lean and Six Sigma Today’s Environment… 32 Where We Need to Be • Too Many Hand-Offs • Reduced Complexity • Not Enough Information • Timely Information • Too Much Rework • Doing It Right the First Time • Manually Intensive • Improved Systems • Missing Customer CTQs • Satisfied Customers • Long Cycle Times • Shorter Cycle Times Page 32 of 38 Why Every Firm Is Driven to Both Lead Time Reductions and Quality? • Customer loyalty and retention • Shorter Customer Lead Time demands • Downward price pressure: lower costs not lower margins • Lower invested capital • Capacity Expansion with existing assets 33 Page 33 of 38 Why Do These Goals Require Both Lean and Six Sigma? • Inconsistent product delivery and quality reduce sales • In a value stream, material spends 95% of its time waiting • Poor quality increases manufacturing lead time • 10% scrap can increase lead time by 40% and reduces available capacity • Slow lead time reduces the rate of quality improvement • Designed experiments (DOE): fewer trials per month • Capacity problems masked by slow cycle times • Lean Tools accelerate lead time reduction compared to Six Sigma • Six Sigma brings a process under control Lean Six Sigma optimizes capacity, reduces cycle time performance and eliminates variability in all processes Page 34 of 38 Lean Six Sigma Combines the strategy and solution sets inherent in Lean with the cultural, organizational process and analytical tools of Six Sigma With the result that we … respond to our customers better, faster with less waste Page 35 of 38 Green Belt Qualities • • • • Project Management Skills Team Leadership Skills Technical aptitude “Can-do” attitude • Process expertise • Potential Black Belt candidate Page 36 of 38 What Are the Roles of a Green Belt ? Green Belts: • Can lead project teams or participate on Black Belt teams • Are contributors from various disciplines • Are Change Agents for the organization • Should stimulate management thinking by posing new ways of doing things • Carry a very high level of peer respect and are clearly seen as leaders • Manage risks, help set direction, and lead the way to breakthrough improvement Page 37 of 38 Let’s See… • You are going to work on one of highest management priorities • You will have upper management support and commitment • Your value will be measured by the savings from this highly visible project • You will build the teams to help the business grow with a high level of empowerment • Data and facts will be your guide • Reward and recognition will be available for success Page 38 of 38 ... will begin to develop an understanding of the Lean Six Sigma Improvement Processes • We will present an overview of the Lean Six Sigma material to be covered this course • You will understand the... problems masked by slow cycle times • Lean Tools accelerate lead time reduction compared to Six Sigma • Six Sigma brings a process under control Lean Six Sigma optimizes capacity, reduces cycle... 30 of 38 The Lean and Six Sigma The Lean Enterprise Goals Six Sigma Goals • Are Absolute • Are Relative • Single piece flow • Give the customer what they want • Zero WIP • High Sigma Quality