Lean Six Sigma

LEAN SIX SIGMA Phan Quốc Khải - 080834 Nguyễn Anh Khoa - 080835 Lương Ngoc Lan - 080838 Presentattion Group: Agenda  Lean Six Sigma Overview – Lean – Six Sigma – Lean & Six Sigma  Lean Six Sigma in Software Development (Combining Agile – Lean & Six Sigma)  Transactional Six Sigma 8/29/2011 Seminar Software Quality Management 2 Lean Overview 8/29/2011 Seminar Software Quality Management 3 What is Lean  Lean is a strategy that focuses on the elimination of waste so each step in a process creates value for the customer.  Lean enhances efficiencies, reduces waste, and improves profit margins. It is a continuous. (Source: “What is lean?” from http://www.prosolve.ca/lean1) 8/29/2011 Seminar Software Quality Management 4 The Lean Principles [1] 1. Determine value – what does the customer want? 2. Use the pull system – to avoid overproduction. 3. Institute one-piece flow – make the work flow. 4. Level out the workload – to the rate of customer demand. 5. Stop and fix problems – immediately to get quality. 6. Standardize – to support improvement. 7. Use visual controls – so that no problems remain hidden. 8. Use only reliable technology – that support the people and the process. 9. Compete against perfection – not competitors. (Lean Six Sigma – Chap 2 – page 31) 8/29/2011 Seminar Software Quality Management 5 Lean Production V.S. Mass Production From: If you build it, they will come (Mass Production) To: When they come, build it fast (Lean Production) 8/29/2011 Seminar Software Quality Management 6 7 Kinds of Waste  Inventory - unneeded stock or supplies  Motion - movement of staff and information  Overproduction - unnecessary tests  Overprocessing - filling out extra paperwork  Transportation -movement of patients or equipment  Rework/Correction - paperwork, med errors  Waiting - delays in diagnosis and treatment 8/29/2011 Seminar Software Quality Management 7 Lean Process 8/29/2011 Seminar Software Quality Management 8 5S 5S Sort Sort Straig- hten Straig- hten Shine Shine Standa- rdize Standa- rdize Sustain Sustain The Five S’s 8/29/2011 Seminar Software Quality Management 9 Improved material handling Improved material handling Inventory reduction Inventory reduction Lower unit costs Lower unit costs Efficient scheduling Efficient scheduling Reduction in lead time to the customer Reduction in lead time to the customer Personnel and customer satisfaction Personnel and customer satisfaction Benefits of Lean 8/29/2011 Seminar Software Quality Management 10 [...]... Software Quality Management 15 What is Lean Six Sigma  Lean Six Sigma is a methodology that maximizes shareholder value by achieving the fastest rate of improvement in customer satisfaction, cost, quality, process speed and invested capital  The fusion of Lean and Six Sigma are required because: – – 8/29/2011 Lean cannot bring a process under statistical control Six Sigma alone cannot dramatically improve... Business Function Needs Lean Six Sigma? SERVICE DESIGN PURCH ADMIN 6 Sigma Marketing Methods QA MFG MAINT As long as there is a process that produces an output, whether it is a manufactured product, data, an invoice, etc…, we can apply the Lean Six Sigma Breakthrough Strategy!!!! 8/29/2011 Seminar Software Quality Management 19 Lean Six Sigma – Two Complementary Approaches  Six Sigma • Emphasizes need... Quality Management 21 Lean Six Sigma Objective Lean Objectives Six Sigma Objectives • • • Shift Process Average Reduce: Reduce Process Variation Robust Products and Processes • • • Waste • • Improve Process Flow Reduce Process Non-Value Added Work Complexity Cycle Time Lean Six Sigma Improves Quality, Cost, and Delivery 8/29/2011 Seminar Software Quality Management 22 Benefits of Lean Six Sigma  Achieve... Software Quality Management 12 Six Sigma DMAIC Model Define Six Sigma Charter Control Measure Improve 8/29/2011 Seminar Software Quality Management Analyze 13 Benefits of Six Sigma Reduction in defects Decrease in costs Improvement in customer satisfaction Reduction in process variation Improvement in process capability 8/29/2011 Seminar Software Quality Management 14 Lean Six Sigma Overview 8/29/2011 Seminar.. .Six Sigma Overview 8/29/2011 Seminar Software Quality Management 11 What is Six Sigma  In statistic, 6 sigma simply means 3.4 defects over one million opportunities  Nowadays, Six Sigma is considered as a systematic method of eliminating defects (anything that does not conform to customer expectations) from a product or process (Source: 8/29/2011 “What is lean? ” from http://www.prosolve.ca /lean1 )... to meet stretch goals of producing better products and services delivered faster and at lower cost 8/29/2011 Seminar Software Quality Management 23 Lean Six Sigma in Software Development Combining Lean Six Sigma and Agile Reference: Combining Lean, Six Sigma and Agile: Why, and How? www.ccpace.com 8/29/2011 Seminar Software Quality Management 24 Why is Agile? [1] Agile is an iterative and incremental... unnecessary code Lead to repair, rework, or scrap Lean Six Sigma Demystified – Jay Arthur (Page 58) 8/29/2011 Seminar Software Quality Management 28 Demonstrated Successes Agile & Lean Six Sigma have both proven their mettle in the respective domains:  Agile Project Execution: Improved time-to-market, collaboration and customer satisfaction  Lean Six Sigma Process Improvement: Better process controls,... dramatically improve process speed or reduce invested capital Seminar Software Quality Management 16 Why Lean Six Sigma  2 sources of cash flow – – 8/29/2011 External Customer: give money for products Internal Processes: save money by cutting unnecessary works or wastes Seminar Software Quality Management 17 Lean Six Sigma Principles      8/29/2011 Specify value in the eyes of the customer Identify the value... process needs Within Lean Six Sigma projects:  No incremental delivery of business value  Limited scope of analysis and opportunity for measurement  Insufficient linkage to execution of improvement recommendations An explicit linkage from Customer to Process to Execution ??? 8/29/2011 Seminar Software Quality Management 31 Problem Definition vs Solution Execution  Lean and Six Sigma  defining the... Quality Management 32 Contributions of Agile & LSS Lean Six Sigma Agile Encourages continuous improvement Encouraging constant inspecting and adapting Looks to minimize risk Brings risk to light faster through iterative development and prioritization Looks to minimize inventory and storage Minimizes work in process Agile is the way to implementing Lean Six Sigma principals 8/29/2011 Seminar Software Quality . LEAN SIX SIGMA Phan Quốc Khải - 080834 Nguyễn Anh Khoa - 080835 Lương Ngoc Lan - 080838 Presentattion Group: Agenda  Lean Six Sigma Overview – Lean – Six Sigma – Lean & Six Sigma  Lean. capability Benefits of Six Sigma 8/29/2011 Seminar Software Quality Management 14 Lean Six Sigma Overview 8/29/2011 Seminar Software Quality Management 15 What is Lean Six Sigma  Lean Six Sigma is a methodology. & Six Sigma  Lean Six Sigma in Software Development (Combining Agile – Lean & Six Sigma)  Transactional Six Sigma 8/29/2011 Seminar Software Quality Management 2 Lean Overview 8/29/2011 Seminar