Introduction to Lean

Sigma Quality
Lecture 1 - Part A
Six Sigma and
Variation

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Six Sigma &
Variation

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Process Inputs
Man The person or persons executing a process

Machine The tools and equipment used in executing a process

Materials The parts or materials used in the process

Methods The methods / procedures used to execute a process

Measurements and instructions that guide the process

Measurement
execution
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Measurement Precision
Vs Accuracy

Accurate Accurate
Precise Precise

Accuracy – How Precision is

close a repeatability –
particular how close the
measurement is measured
Accurate Accurate to the correct values are to
Precise Precise
(true)value each other

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Process Inputs and Outputs
Controllable inputs
c1 c2 c3

Measurement
Monitoring
and Control
Inputs
Process
y = Critical to
Quality (CTQ) Output
characteristic(s) Product /
Service

u1 u2 u3
Uncontrollable inputs

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Toaster Process
What are the Key
Process Input
Variables (KPIV’s)?

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Toaster Operator Burnt?

Input – Toaster
Temperature
Process Temperature

- Output Time
Toaster Taste

Process
Bread Age
1 Score 5
Bread Thickness

Bread Type Even Toasting Critical To

Quality (CTQ) for the
Customer!
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Coffee Quantity of Coffee Taste

Input – Water Volume

Temperature
Process Water Temperature

- Output Storage of Coffee Beans

Coffee Taste

Process
Brewing Time
1 Score 5
Coffee Maker

Coffee Type
Taste is a Critical To Quality
(CTQ) item for the Customer!
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Causes of Common Causes:
• Random variation (usual)
Variation • No pattern
• Inherent in process
• Adjusting the process increases its variation

Special Causes:
• Non-random variation (unusual)
• May exhibit a pattern
• Assignable, explainable, controllable
• Adjusting the process decreases its variation
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Introduction to Lean
Sigma Quality
Lecture 1 - Part B
Introduction to
Lean Six Sigma

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Business Challenges
CUSTOMER YOUR
DEMANDS RESPONSE

Lower Prices Lower Costs

Shorter Process Lead

Shorter Delivery Times
/ Cycle Times

Typical Lean Six Sigma Implementations:

10-20% Increase in Output and a 30% Decrease in Cycle Time

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 Where we want to be?
Lean Sigma • Goals / Objectives
• Benchmark
Journey • Voice of the Customer (VOC)

Where we are?
• Current Metrics
• Data Collection

How to get there?

• Lean
• Six Sigma

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What is Lean Six Sigma?

LEAN SIX SIGMA LEAN SIX SIGMA

Reduces waste by Six Sigma is a Problem Solving and
improving process structured problem improving processes is faster
flow solving process and more efficient
(DMAIC)
Improves quality by
reducing variation. 13
Lean & Six Sigma Together
• Lean and Six Sigma are both required
because:

Lean cannot bring a process under statistical control

Six Sigma alone cannot improve process flow and

reduce waste

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 The goal of Six Sigma is to eliminate the
What is variation within the process that leads to
Six Sigma? defects and customer dissatisfaction.
Six Sigma tools are based on data and
statistical analysis
The Six Sigma DMAIC Process (Define -
Measure - Analyse - Improve - Control)
works for both Manufacturing and service
processes.
Six Sigma is based on having the right
metrics – Time – Quality - Cost. 15
 1930’s – Bell Labs – Walter
Origins of Shewart
Six Sigma
1970’s – Toyota Production
System (TPS)

1980’s - Motorola Develops Six

Sigma

1990’s - Other Companies Adopt

Six Sigma – 2/3 of Fortune 500
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Six Sigma Control Define

DMAIC How do we
guarantee
What is important
(CTQ’s)?
Process performance?

Improve
Measure
Quantify potential
solutions Analyse Collect data /
measure our
Analyse data / performance
reasons for
variation
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Six Sigma Roles within your Organisation
Champions Master
Black Belt

Black Belt Black Belt Black Belt

Green Belt Green Belt Green Belt Green Belt Green Belt

Yellow Belt Yellow Belt Yellow Belt Yellow Belt

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Black Belts and Green Belts
Black Belt--Full time person equipped with statistical
tool set and 6 sigma DMAIC process knowledge.
Implement Six Sigma principles and practices and lead Six Sigma projects.
Generally 6 months of training (5 weeks – DMAIC) required and Black Belt
Project completion required for certification.

Green Belt--Process engineers and others trained by

Black Belts.
Support Six Sigma projects in their department and assist with data collection
and analysis. Complete approx. 3 months of training and a Green Belt Project
for certification. Projects must show a financial saving.

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Why Reduces dependency on “Tribal Knowledge”
Organisations - Decisions based on facts and data rather than
opinion
Need Six Sigma? Helps attack the difficult problems
- Eliminates ongoing chronic problems (common
cause variation)
- Improves quality and customer satisfaction
Provides a disciplined approach to problem solving
- DMAIC often changes the company culture
Creates a competitive advantage
Increases sales and profits!

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Introduction to Lean
Sigma Quality
Lecture 1 - Part C
Introduction to
Lean

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What is Lean?
Lean is a philosophy that
recognises WASTE as the
primary driver of cycle time,
cost, and quality. Lean tools
are designed to identify and
eliminate waste in your
processes.

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Why should you implement Lean Six Sigma?
– The Customer always changes their demand
– The Customer may change their mind
– The Customer often wants a price reduction
– The Customer wants their product on time.

In Your Organisation?
– Do you spend extra on Overtime?
– Are you constantly struggling to make
commitments on time?
– Do you buy extra equipment to meet unknown
demand?
– Is it a challenge to meet product development
times?
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Lean Foundation and Building Blocks (Tools)

Kaizen (Continuous Improvement)

Pull/Kanban Takt Time Flow

SMED Error Proofing Point of Use

Standard Work Visual Management TPM

Batch Size Reduction 5S Metrics

Value Stream Map (VSM)

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 Batch Size Reduction
Change Management How can you
Lean Toolbox Value Stream Mapping improve the
Set-up Reduction equipment
Error Proofing effectiveness?
Shop Floor Management
Total Productive Maintenance

LEAN Layout Optimisation

Pull Systems
Rapid Assessment
The Lean Master Lean Diagnostics
How do you improve
toolbox is divided the flow of your
Lean Business Case
into two parts product or service?
IT Tools
Performance Metrics
Theory of Constraints
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 100%
Cycle Time Vs Lead Time 90%
80%
70%
1 Typical lead time compared to 60%
the process cycle time(s)
50%
2 Ratio can often be >100:1 40%
How do we bring the ratio 30%
3
closer to 1:1? 20%
4 World Class can be <10:1 10%
0%
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 Before Lean
Lead time
Reduction CUSTOMER
Waste
PRODUCT
ORDER DELIVERY

Long Lead Times

Lean Organisation
Using Lean Tools Quality & Cost
CUSTOMER PRODUCT
ORDER Waste DELIVERY

Shorter Lead Times 27

Value Added Activity

Value is added to a product when it changes the

fundamental nature of the product / service.
Examples:
• Grinding coffee beans into a cup of coffee
• Analysing a Blood sample and producing a report

All other activities are non-value added or waste

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Two Approaches to Reducing Lead Time
Percent of Overall Lead Time
5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100

VA Non Value-Add Time

VA Non Value-Add Time

VA Non Value-Add Time

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 A continuous flow throughout your operations with minimal
inventories at each stage of the production process.
How do you Production capability that is synchronised to customer demand.
recognise Defect prevention rather than inspection and rework. Quality is
built into the process and real time quality feedback is in place.
Lean? Operations that are driven by customer demand or “pull”, not
on forecasts or “push”.
Close integration of the whole value stream from raw material
to finished product through partnerships with suppliers,
logistics, distributors and customers.
Team based work organisations with multi-skilled operators
empowered to make decisions and improve processes.
Active involvement by workers in trouble shooting and problem
solving to improve quality and eliminate waste.

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Lean, DMAIC and DFSS
DFSS Lean DMAIC
DESIGN PREDICTIVE ELIMINATE WASTE, ELIMINATE DEFECTS,
QUALITY INTO PRODUCTS IMPROVE CYCLE TIME REDUCE VARIABILITY

Robust Lead-time Capable

Design for Six Sigma LEAN Variation Reduction

•Voice of the Customer •Value Stream Mapping •Predictability
•Capability assessment •Waste Elimination •Repeatability
•Robust Design •Cycle Time reduction •Capability
•Predictable Product Quality •WIP Reduction •Precision
•Lead Time Reduction •Accuracy

From Design to Manufacturing

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Introduction to Lean
Sigma Quality
Lecture 1 - Part D
Lean Tools &
7 Wastes

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 Defects / Unused
Quality Creativity

Over Transport
Production ation
Waste
(Muda)
Over Inventory
Processing

Waiting Motion

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Transportation
Transportation waste is moving the
material / product more than is necessary

Examples:
• Having three storage locations for the same
material
• Moving raw materials from an offsite
warehouse

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Inventory

Excess raw material, work-in process or

finished goods is waste.

Examples:
• More material than needed to keep
production flowing
• Excess work-in-process

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Motion
The waste of motion refers to any extra
movement of the operator which is more
than required for that process step.
Examples:
• Walking 3 metres to retrieve a part or tool
• Poor workstation layout requiring un-
necessary motion

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Waiting
Delays due to waiting for parts or material
is defined as waste

Examples:
• Waiting for material
• Waiting for a machine to be fixed
• Unbalanced assembly sequence
• Waiting for an earlier process step to be
completed

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Overprocessing
Over processing is doing more to the
product than the customer requested

Examples:
• Additional packaging which is not required
• Testing a product three times when the
specification calls for one test

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Overproduction
Overproduction is making more product
than there are customer orders.

Examples:
• Running a machine for 16 hours when only
10 are required to increase utilisation
• Making additional product ahead of demand

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Defects Correction/Rework
Anything that is not “done right the first time” and
requires rework, inspection or touchup
Examples:
• Final inspection
• Sorting incoming materials
• Checking a key dimension
• Quality personnel ‘inspecting’
quality into the product

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Eight Service Industry Wastes
1 2 3 4 5

Errors in Transport Doing Waiting for the Process of

documents of unnecessary next process getting
documents work not step approvals
requested

6 7 8
Unnecessary Backlog in Under utilised
motions work queues employees

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Summary - How Lean Six Sigma work together
• Six Sigma reduces variation, whereas Lean is focused on waste
elimination (reducing inventory / work in process (WIP)
• By focusing on process improvement, as well as eliminating waste /
inventory, your organisation receives double the benefit

LEAN
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