Lean Six Sigma

Lean Six Sigma History of Six Sigma

Copyright 2005, AIT Group Inc. All rights reserved.

Six Sigma History

Lean Six Sigma

Copyright 2005, AIT Group Inc. All rights reserved.

Six Sigma History

Motorola was the first advocate in the 80s Six Sigma Black Belt methodology began in late 80s/early 90s More recently, other companies have embraced Six Sigma:

Lean Six Sigma

GE Allied Signal Bombardier Sony

Project implementers names includes Black Belts, Top Guns, Change Agents, Trailblazers, etc. Implementers are expected to deliver annual benefits between $500,000 and $1,000,000 through 3-5 projects per year Top-down program with Executive and Champion support Outwardly focused on Voice of the Customer, inwardly focused on using statistical tools on projects that yield high return on investment

Copyright 2005, AIT Group Inc. All rights reserved.

Six Sigma History

Lean Six Sigma

Nobody at GE gets promoted without Six Sigma training. GE annual report examples:
10-fold increase in life of CT scanner x-ray tubes Improved yields of super-abrasives worth a full decade of increased capacity despite growing demands 62% reduction in turn-around time of railcar leasing repairs Plastics business added 300 million pounds of new capacity equivalent to one free plant

Copyright 2005, AIT Group Inc. All rights reserved.

How Complex Are Your Products & Services? (% Shippable without Rework)
# of Parts or Steps 1 2 3 4 5 10 30 50 100 300 500 1,000 3,000 5,000 10,000 3 (Cp=1.00)* 93.32% 87.08% 81.27% 75.84% 70.77% 50.09% 12.56% 3.15% 0.10% 4 (Cp=1.33)* 99.38% 98.76% 98.15% 97.54% 96.93% 93.96% 82.96% 73.24% 53.64% 15.43% 4.44% 0.20% 5 (Cp=1.67)* 99.98% 99.95% 99.93% 99.91% 99.88% 99.77% 99.30% 98.84% 97.70% 93.26% 89.02% 79.24% 49.75% 31.24% 9.76%

Lean Six Sigma

6 (Cp=2.00)* 99.9997% 99.9993% 99.9990% 99.9986% 99.9983% 99.9966% 99.9898% 99.9830% 99.9660% 99.8980% 99.8301% 99.6605% 98.9849% 98.3140% 96.6564%
5

* Distribution shifted by 1.5

Copyright 2005, AIT Group Inc. All rights reserved.

Why 99% Is Not Good Enough

Lean Six Sigma

The goodness level of 99% equates to:

20,000 lost articles of mail per hour 5,000 incorrect surgical operations per week 200,000 wrong drug prescriptions each year No electricity for almost 7 hours per month

Copyright 2005, AIT Group Inc. All rights reserved.

Six Sigma Defined

What Six Sigma Is:

Lean Six Sigma

An enabler to business strategy Places customers at the center of performance improvements Fact-based approach for improving business processes and solving business problems A proven methodology and toolset supported by deep training and mentoring Focused on reducing variability of processes A way to develop highly skilled business leaders A means for creating capacity in organizations

What Six Sigma Is Not:

A business strategy A way to develop statisticians and engineers Only for manufacturing companies Only about cost reductions A flavor of the month approach An approach that slows decision making and business outcomes
Copyright 2005, AIT Group Inc. All rights reserved.

But Six Sigma Alone Has Holes

Set-up reduction Waste elimination Mistake Proofing Cycle-time improvement Process simplification Work in process control and reduction

Lean Six Sigma

Six Sigma lacks many concepts and tools lean is strong in

Six Sigma has long time-lines for projects (4-18 months) compared to Lean (1-4 months) Six Sigma specialists (Black Belts) are often less productive than Lean specialists
Six Sigma Black Belts do 3-5 projects a year Dedicated Lean project leaders do 10-20 projects a year

Six Sigma is often seen as being too slow

Copyright 2005, AIT Group Inc. All rights reserved.

Author

Lean Six Sigma

Steven Bonacorsi is a Senior Master Black Belt instructor and coach. He has trained hundreds of Master Black Belts, Black Belts, Green Belts, and Project Sponsors and Executive Leaders in Lean Six Sigma DMAIC and Design for Lean Six Sigma process improvement methodologies. Steven is a board member for the Boston Chapter of the Industry of Industrial Engineers. Full Bio: http://www.linkedin.com/in/stevenbonacorsi The AIT Group, Inc. Steven Bonacorsi, Vice President Lean Six Sigma Master Black Belt 3135 South Price Road, Suite 115 Chandler, AZ 85248-3549 Phone: +(1) 888.826.2484 E-mail: info@theaitgroup.com Web: http://www.theaitgroup.com

Copyright 2005, AIT Group Inc. All rights reserved.

Learn More about The AIT Group

http://www.theaitgroup.com

Lean Six Sigma

Copyright 2005, AIT Group Inc. All rights reserved.

10

Who is AIT?
AIT is a premier provider of Lean, Six Sigma and Supply Chain solutions. Solutions are customized to the customer not one size fits all. The company was started in 1998 by three individual that recognized extremely early in the industry how well Lean, Six Sigma and Supply Chain disciplines integrate. Our goal is the complete transfer of knowledge via client specific solutions not training. Your instructors from AIT are Certified Master Black Belts and Lean Experts. We have worked with many different clients and some of the largest companies in the world. We have Offices in the US, Europe, Mexico and China.

Lean Six Sigma

The AIT Group is an international consulting firm that has been specifically designed to help companies increase profitability by improving overall business performance and customer satisfaction through the integrated application of:

Lean

Supply Chain Mgmt. Value $ Six Sigma

www.theAITgroup.com

The TheAIT AITGroup Groupexcels excelsin inimplementation implementation not notrecommendation! recommendation!
Copyright 2005, AIT Group Inc. All rights reserved.

11