Introduction to the Quality Philosophy Lean Six Sigma

Introduction to the Quality Philosophy: Lean Six Sigma Presented by Dr. Joan Burtner Certified Quality Engineer Associate Professor of Industrial Engineering and Industrial Management

Why Do We Need Lean Six Sigma? b “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”. b (Lean Six Sigma, Michael George, p. 13) ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering 2

The Six Sigma Approach in the Business Community b Definition • a comprehensive and flexible system for achieving, sustaining and maximizing business success b Drivers • • • a close understanding of customer needs disciplined use of facts, data, and statistical analysis diligent attention to managing, improving, and reinventing the business process ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering 3

Six Sigma Applicability b Six Sigma has been successfully applied in manufacturing environments (eg Motorola). b Six Sigma has been successfully applied in the service sector (eg GE Capital). b More recently, Six Sigma has shown to be exceptionally effective in educational settings. • Eligible for Malcolm Baldrige National Quality Award • MBNQA awarded to two school districts in 2001 ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering 4

The Six Sigma Philosophy b Designed to foster data-driven management decisions b The Three C’s • common metrics • “constant” communication • culture change ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering 5

Six Sigma Metrics b cost reduction b productivity improvement b market-share growth b customer retention b cycle-time reduction b defect reduction b culture change b product/service development ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering 6

Six Sigma Management Approach b Genuine Focus on the Customer b Data- and Fact-Driven Management b Process Focus b Proactive Management b “Boundaryless” Collaboration b Pursue Success; Tolerate Failure ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering 7

Six Sigma Inputs and Techniques b Voice of the Customer b Voice of the Market b Failure Mode and Effect Analysis b Cause and Effect Diagrams b Design of Experiments b Benchmarking b House of Quality ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering 8

Guidelines for Determining Six Sigma Metrics b Consider ways to measure Service as well as Output factors. b Practice continuous improvement of the measurements. b Set measurement priorities that match resources (Prioritize for maximum potential gain. ) b Stop measurements that are not needed or useful. ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering 9

Selection of Six Sigma Improvement Projects b There is a gap between current and desired/needed performance. b The cause of the problem is not clearly understood. b The solution isn’t predetermined, nor is the optimal solution apparent. ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering 10

Implementation of Six Sigma Improvement Projects b Start small; don’t go for large scale changes at first b Select several well-defined projects b Expand projects after early successes are accomplished ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering 11

Lean Enterprise b General term for the application of lean principles b Widespread success in manufacturing during past 15 years b More recently - applied to transactional endeavors - billing, customer service, etc. b Represents a culture change ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering 12

Evolution of Lean Manufacturing b Total Quality Management b Toyota Production System b Six Sigma Process Improvement b Theory of Constraints b Value Stream Mapping b Womack and Jones - Lean Thinking b Rother and Shook - Learning to See ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering 13

Wasteful Practices Waiting X Transportation X Overproduction X Processing X Inventory X Motion X Defective Products X ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering 14

Lean Principles b Pull instead of push scheduling b Smaller batch sizes b Shorter process times b Value-added vs. non value-added b Standard work ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering 15

Lean Techniques b Line balancing b One-piece flow b Cellular layouts b Value-added vs. non value-added b Value stream mapping b 5 S b Kaizen ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering 16

Introduction to the 5 S’s - 1 SEIRI (SIMPLIFY) SEITON (STRAIGHTEN) ETM 627 Fall 2008 DISTINGUISH BETWEEN WHAT IS NEEDED AND KEPT AND WHAT IS UNNEEDED AND THROWN OUT ORGANIZE THE WAY WE KEEP NECESSARY THINGS, MAKING IT EASIER TO FIND AND USE THEM Dr. Joan Burtner, Associate Professor of Industrial Engineering 17

Introduction to the 5 S’s - 2 SEISCO (SCRUB) SEIKETSU (STABILIZE) SHITSUKE (SUSTAIN) ETM 627 Fall 2008 KEEP FLOORS SWEPT, MACHINES CLEAN, AND ALL AREAS NEAT AND TIDY MAINTAIN AND IMPROVE THE STANDARDS OF THE FIRST THREE S’S ACHIEVE THE HABIT OF PROPERLY MAINTAINING THE CORRECT 5 S PROCEDURES Dr. Joan Burtner, Associate Professor of Industrial Engineering 18

Kaizen of an Assembly Line 1 Before ETM 627 Fall 2008 After Dr. Joan Burtner, Associate Professor of Industrial Engineering 19

Standard Work Flow Diagram b Used to help identify the flow of the operation(s) b Used as a layout for developing an improved process b An excellent tool to use to develop standard work procedures ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering 20

Cellular Layout Concept b The arrangement of manufacturing work cells to allow for a flowing process b Eliminates the need for large inventory batches b In theory, the parts enter the beginning of the cell as raw materials and exit the cell as completed units ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering 21

Value Stream Mapping b Learning to See b Hand-drawings preferred b Current state map b Future state map b Man, machines, inventory, times, flow combined into one graphic b See example from ISE Capstone Design Course ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering 22

Mapping the Current State b ETM 627 Fall 2008 ISE Project for a Local Manufacturer Dr. Joan Burtner, Associate Professor of Industrial Engineering 23

Lean Metrics (Quantitative) b Lead-times b Inventory Turns b Work In Process b Workable Floor Space b Efficiency b Cycle Time ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering 24

Selection of Lean Projects b Use potential increase in net present value to select which value stream to investigate first b Analyze value stream map for customers’ critical to quality issues b Analyze value stream map for time traps b Choose specific projects on the basis of highest rate of return ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering 25

Proposition 1 b Reducing process lead times and variation in the time it takes to complete a process has just as much potential for improving a company’s performance as reducing variation in quality. (Lean Six Sigma, Michael George) ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering 26

Propositions 2 and 3 b Lean and Six Sigma are inextricably linked as partners in cost reduction, lead time, and quality improvement. b Lean produces remarkable successes -but only in small pockets of activity b (Lean Six Sigma, Michael George) ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering 27

Proposition 4 b Lean and Six Sigma should be applied together because • A stand-alone Six Sigma program cannot dramatically increase process speed or decrease invested capital • A lean enterprise that focuses on eliminating waste will not bring a process under statistical control ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering 28

Proposition 5 Some people believe lean enterprise methodologies must be completed before Six Sigma gains can be maximized. b James Bossert , July 2003 “Lean and Six Sigma--Synergy Made in Heaven” Quality Progress. b ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering 29

Discussion of Propositions b Audience members who support Six Sigma b Audience members who support Lean b Audience members who support neither philosophy ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering 30

Acknowledgements b Clyde Ingram, Rheem Manufacturing Lean Training Materials b Laura Brown, Industrial Engineering Co-op Student b Students enrolled in ISE 482 Senior Industrial Engineering Capstone Design b Mike Dunn, Bassett Furniture Lean Project Materials ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering 31

References and Recommended Readings b b b George, Michael. (2002). Lean Six Sigma: Combining Six Sigma Quality with Lean Speed, New York: Mc. Graw-Hill. Rother, M. and Shook, J. (2003). Learning to See: Value Stream Mapping to Create Value and Eliminate Muda, Brrookline, MA: The Lean Institute. Pande, P, Neuman, R. P. , and Cavanagh, R. R. (2000). The Six Sigma Way, New York: Mc. Graw Hill. Bossert , James. ( July 2003) “Lean and Six Sigma--Synergy Made in Heaven” Quality Progress. Goldratt, Eliyahu M. , (1994). The Goal: A Process of Ongoing Improvement, second edition. Great Barrington, MA: North River Press. Womack, James P. and Daniel T. Jones. (2003). Lean Thinking: Banish Waste and Create Wealth in Your Corporation. New York: Simon & Schuster. ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering 32

Contact Information b Burtner_J@Mercer. edu b Mercer University School of Engineering Macon, GA b Phone (478) 301 - 4127 b Fax (478) 301 - 2331 ETM 627 Fall 2008 Dr. Joan Burtner, Associate Professor of Industrial Engineering 33