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Athena
             Consulting

A short introduction to Lean 6 Sigma
   philosophy and methodology


    Designed for Board members and Executives
          for general knowledge purpose



                                                D.LAPERE - December 2012
Several methods aiming to improve processes continuously



                                      TPS
                                  Toyota Problem
                                     Solving




                TQM                                             Lean
             Total Quality                                   Manufacturing
             Management                                          Toyota

                                 Continuous
                                Improvement
                                  methods



                   Agile                                 Six Sigma
                Manufacturing                            Motorola, GE



                                        …

 Athena
Consulting                                                                   -2-
Why combining Six Sigma and Lean Manufacturing?



    These are   complementary methods and, moreover,
                both are customer focused




 Athena
Consulting                                             -3-
Sigma?



                                                 Firstly used in statistics …   Statistics / probability:
                                                                                How much  deviation
                                                                                   from the average?


                 … Then transposed to industry


                                                  σ Sigma




                Industry / Quality:
               How far a given process
             deviates from perfection?
             But what is perfection ?
 Athena
Consulting                                                                                                  -4-
6 Sigma? As perfect as pratically possible


                                       Defects per Million Opportunities
              Logarithmic
                 Scale



                                                                                                         6σ
 1 000 000
                                308 537,0
   100 000
                                                66 807,0
                                                                                                         6 Sigma
     10 000


      1 000
                                                                 621,0
                                                                                   233,0
        100


             10
                                                                                                   3,4
             1
                            a




                                            a




                                                            a




                                                                               a




                                                                                               a
                       gm




                                         gm




                                                          gm




                                                                             gm




                                                                                             gm
                     Si




                                       Si




                                                        Si




                                                                           Si




                                                                                           Si
                   2




                                      3




                                                       4




                                                                           5




       3.4 defects per 1.000.000 opportunities is considered as acceptable                 6


       and not far from perfection in real life that is to say a 99.9997% quality level
 Athena
Consulting                                                                                                         -5-
Why 6σ and not 5 or 4σ? Example


    4σ: Every hour the postal service would lose 20.000 pieces of mail




                      6σ: Every hour the postal service would lose 7 pieces of mail
 Athena
Consulting                                                                            -6-
Why 6σ and not 4σ? Example




 4σ             2 missed landing daily in main airports!
 6σ             2 missed landing every 5 years
 Athena
Consulting                                                  -7-
Why 6σ and not 4σ? Example




4σ            Poisonous water during 15   min every day
6σ              1 min undrinkable water over several months
 Athena
Consulting                                                -8-
Measure performance level of a process



                        Problem solving approach

             6σ
             6 Sigma
                        Data driven method
                        Continuous improvement




                                      Improve the process then
                                    benchmark performance indicator
 Athena
Consulting                                                                 -9-
DMAIC
             Define processes to be improved and set up the related team and goals

             Measure main key performance indicators


   6σ        Analyse defects and related reasons (Root-cause analysis)

             Improve by tackling all the issues

             Control, monitor and check that goals are achieved

 Athena
Consulting
                            But what defines a process?                          -10-
What is a process?

                       A set of tasks aiming to a common goal




                                                                      Procedures
                                                          Equipment
                                     Material



                                                Energy
                           People
   Requirements                                                                    Products
      Ideas                                                                           &
                                        Work activities
      Time                                                                         Services


                           Composed of tasks linked together
                           Triggered by an event
                           Possibly impacted by external factors
                           Involving actors contributing to these tasks
                           Providing a result meeting a customer expectations


 Athena
Consulting                                                                                    -11-
Outcome only matters




             X                                                                   Process
                                                                                                                                                                        Y
                                                                                                                                                                 Outcome


                              Department performance
                                                       Y = f(X)
                                                        Department performance


                                                                                  Department performance


                                                                                                           Department performance


                                                                                                                                    Department performance




                                                                                                                                                             Customer
                                                       Process performance




                                                       Process performance




      What matters for the customer is not departments performance but the overall
                                 process performance!
 Athena
Consulting                                                                                                                                                                  -12-
6σ phases (DMAIC)



                       Define the project goals, appoint the
             Define    team and agree on customer (internal
                       and external) deliverables

                       Measure and check the current process
             Measure
                       performances to determine the baseline


                       Analyze defects, through a root-cause
             Analyze
                       analysis, in order to determine the very
                       reasons of these defects

 Athena
Consulting                                                        -13-
6σ phases (DMAIC)




             Improve   Improve the process by eliminating defects




             Control   Control future process performance




 Athena
Consulting                                                          -14-
Some of 6σ keywords

   Tools and methods
              Project management
              Business Process Mapping
              Design of Experiment
              Logical flow chart
              Chain of value
              XY Matrix
              Failure mode effect analysis
   Players
              Executive leadership
              Champions
              Master Black Belts
              Black Belts
              Green Belts
              Yellow Belts

 Athena
Consulting                                    -15-
Lean management




 Athena
Consulting          -16-
Identify   flow of value
                          and
                  eliminate   waste

 Athena
Consulting                              -17-
Figure out the flow of value-added                  activities,
             i.e. activities a customer would be willing to pay for




 Athena
Consulting                                                                     -18-
Find out valueless         activities,
   i.e. those that does not add any value in the eyes of the
   customer




 Athena
Consulting                                                     -19-
7 types of waste to be eliminated can be identified (7W’s):


                                                        Motion




                                                                          People
                                                        Waiting time

                                                        Overproduction




                                              Process
                                                        Processing time

                                                        Defects




                                                                          Product
                                                        Inspection

                                                        Transportation




 Athena
Consulting                                                                          -20-
Lean focuses on flow




              flows and intends to stretch the flow towards
    Lean focuses on

    the customer in order to make it as lean, smooth

    and seamless as possible




 Athena
Consulting                                                    -21-
Lean + 6σ

              A combination of both Lean
                 and Six Sigma aiming to:
                             Improve
                             quality
                             Eliminate
                             waste
                             Reduce lead
                             time
                             Reduce total
                             cost




 Athena
Consulting                                  -22-
Lean Six Sigma


Lean speeds up fulfilment by eliminating waste sources, and
                   thus, improves   efficiency

Six Sigma focuses on deviations management, solving defects
      and, as a result, reduces costs and enhances quality




Profitability, quality, competitive advantage
 Athena
Consulting                                               -23-
Athena
     Consulting


Thanks for your attention

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Introduction to Lean 6 sigma

  • 1. Athena Consulting A short introduction to Lean 6 Sigma philosophy and methodology Designed for Board members and Executives for general knowledge purpose D.LAPERE - December 2012
  • 2. Several methods aiming to improve processes continuously TPS Toyota Problem Solving TQM Lean Total Quality Manufacturing Management Toyota Continuous Improvement methods Agile Six Sigma Manufacturing Motorola, GE … Athena Consulting -2-
  • 3. Why combining Six Sigma and Lean Manufacturing? These are complementary methods and, moreover, both are customer focused Athena Consulting -3-
  • 4. Sigma? Firstly used in statistics … Statistics / probability: How much deviation from the average? … Then transposed to industry σ Sigma Industry / Quality: How far a given process deviates from perfection? But what is perfection ? Athena Consulting -4-
  • 5. 6 Sigma? As perfect as pratically possible Defects per Million Opportunities Logarithmic Scale 6σ 1 000 000 308 537,0 100 000 66 807,0 6 Sigma 10 000 1 000 621,0 233,0 100 10 3,4 1 a a a a a gm gm gm gm gm Si Si Si Si Si 2 3 4 5 3.4 defects per 1.000.000 opportunities is considered as acceptable 6 and not far from perfection in real life that is to say a 99.9997% quality level Athena Consulting -5-
  • 6. Why 6σ and not 5 or 4σ? Example 4σ: Every hour the postal service would lose 20.000 pieces of mail 6σ: Every hour the postal service would lose 7 pieces of mail Athena Consulting -6-
  • 7. Why 6σ and not 4σ? Example 4σ  2 missed landing daily in main airports! 6σ  2 missed landing every 5 years Athena Consulting -7-
  • 8. Why 6σ and not 4σ? Example 4σ  Poisonous water during 15 min every day 6σ  1 min undrinkable water over several months Athena Consulting -8-
  • 9. Measure performance level of a process  Problem solving approach 6σ 6 Sigma  Data driven method  Continuous improvement Improve the process then benchmark performance indicator Athena Consulting -9-
  • 10. DMAIC Define processes to be improved and set up the related team and goals Measure main key performance indicators 6σ Analyse defects and related reasons (Root-cause analysis) Improve by tackling all the issues Control, monitor and check that goals are achieved Athena Consulting But what defines a process? -10-
  • 11. What is a process? A set of tasks aiming to a common goal Procedures Equipment Material Energy People Requirements Products Ideas & Work activities Time Services  Composed of tasks linked together  Triggered by an event  Possibly impacted by external factors  Involving actors contributing to these tasks  Providing a result meeting a customer expectations Athena Consulting -11-
  • 12. Outcome only matters X Process Y Outcome Department performance Y = f(X) Department performance Department performance Department performance Department performance Customer Process performance Process performance What matters for the customer is not departments performance but the overall process performance! Athena Consulting -12-
  • 13. 6σ phases (DMAIC) Define the project goals, appoint the Define team and agree on customer (internal and external) deliverables Measure and check the current process Measure performances to determine the baseline Analyze defects, through a root-cause Analyze analysis, in order to determine the very reasons of these defects Athena Consulting -13-
  • 14. 6σ phases (DMAIC) Improve Improve the process by eliminating defects Control Control future process performance Athena Consulting -14-
  • 15. Some of 6σ keywords  Tools and methods  Project management  Business Process Mapping  Design of Experiment  Logical flow chart  Chain of value  XY Matrix  Failure mode effect analysis  Players  Executive leadership  Champions  Master Black Belts  Black Belts  Green Belts  Yellow Belts Athena Consulting -15-
  • 17. Identify flow of value and eliminate waste Athena Consulting -17-
  • 18. Figure out the flow of value-added activities, i.e. activities a customer would be willing to pay for Athena Consulting -18-
  • 19. Find out valueless activities, i.e. those that does not add any value in the eyes of the customer Athena Consulting -19-
  • 20. 7 types of waste to be eliminated can be identified (7W’s): Motion People Waiting time Overproduction Process Processing time Defects Product Inspection Transportation Athena Consulting -20-
  • 21. Lean focuses on flow flows and intends to stretch the flow towards Lean focuses on the customer in order to make it as lean, smooth and seamless as possible Athena Consulting -21-
  • 22. Lean + 6σ A combination of both Lean and Six Sigma aiming to: Improve quality Eliminate waste Reduce lead time Reduce total cost Athena Consulting -22-
  • 23. Lean Six Sigma Lean speeds up fulfilment by eliminating waste sources, and thus, improves efficiency Six Sigma focuses on deviations management, solving defects and, as a result, reduces costs and enhances quality Profitability, quality, competitive advantage Athena Consulting -23-
  • 24. Athena Consulting Thanks for your attention