4/25/17

Evolution to Lean Six Sigma

Business
Quality: Process
Evolution of Six Sigma from Statistical
Reengineering
Six Sigma
Quality Process
Control
Total
Quality
Management LEAN
Six Sigma
Productivity: Toyota
Production
Ford System
Production LEAN
System
Just In Time
©Furterer, 2006 2

Overview of Lean Overview of Lean

• Lean means speed – it applies to ALL
processes
• Slow processes are expensive processes
• Lean metric is cycle efficiency
• 95% of the lead time in most processes is
Lean is a methodology that It originated as the Toyota wait time
focuses on reducing Production System and • To improve speed – identify and eliminate
cycle time and increased in popularity after the largest time traps using Continuous
waste in processes. 1973. Improvement
3 4

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Overview of Lean: 5 Principles of Lean Thinking

Steps outlined to emphasize sources of waste
Overview of Lean Flow
Determining the Map the progresses
LEAN = Eliminating the Wastes Value Stream Create the
customer’s value without
Typically 95% of all lead time is non-value added Flow waste
Value Added Identify barriers
Non-Value Added
5% 95%
Value

Initiate the
Drive for Pull
Perfection Customer demand
triggers pull. We
Activity ¹ Productivity produce only what
Continually improve always customer demands

Overview of Six Sigma

Lean Components Key Components in Six Sigma
Optimize Flow, Value
Enterprise Stream Culture and
Value Customer
Setup Change
Pull/Kanban Proposition Focus
Reduction Management
Continuous Value Mistake
Improvement Engineering
Reduce
Proofing
Eliminate Measurement
Human
Cost Waste (metrics)
Six Sigma Resource
Management
Lean Layout Standard Work5S Visual Control
Foundation Strategic Direction People Engagement
Quality and
Infrastructure
and
Lean tools

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Requires a Change in Thinking Requires a Change in Thinking

IRS – Tax Advice
(Phone-In)
USA
Related From To
Restaurant
PPM
Bills Doctor Prescription Writing Problem-driven Customer-driven
1,000,000
Payroll Processing Reacting to dissatisfaction Preventing dissatisfaction
100,000
Wire Transfers Results at any cost Process oriented thinking
10,000
Airline Baggage Handling oriented thinking
1,000 Purchased
Material How are results, rework,
100 Lot Reject Rate Best-in-Class
Avg.
Domestic Used to waste and rework restarts created and delivered
10 Airline Flight
Company
1
Fatality Rate
(0.43 PPM)
Special cause focus Common cause focus
1 2 3 4 5 6 7
Sigma Scale of Measure = Ability of process to perform
People management System management
without defects
Reward fire-fighting Reward team effort

Overview of Six Sigma

Using Lean and Six Sigma tools

empowers us to eliminate waste and
excess cost, reduce variation and
defects, & improve our processes and
customer experience in our business.

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