Lean 6 Department of Defense Lean Six Sigma

Lean 6σ Department of Defense Lean Six Sigma Executive level overview

There must be a better way! • Agenda: • Lean Six Sigma Overview – The foundation of LSS – Lean / Six Sigma / LSS – DMAIC Lean 6σ

Terminal Learning Objective • Task: Apply DMAIC to a Simple Work Process • Condition: You are training to become an ACE with access to ICAM course handouts, readings, and spreadsheet tools and awareness of Operational Environment (OE)/Contemporary Operational Environment (COE) variables and actors • Standard: with at least 80% accuracy: – Describe the foundation of Lean and Six Sigma – Define the underlying theory of Six Sigma – Describe the principles of Lean Six Sigma – Explain the concepts of DMAIC

Lean Six Sigma overview Lean • Why Lean Six Sigma • Principles and Tools • Deputy Chief of Staff Army G-1 www. armyg 1. army. mil/leansixsigma/whatislss. asp • Performance Excellence… A Lean Six Sigma World. Class Methodology • Where to Start…Voice of the Customer 6σ

Foundation to Lean 6 Sigma • Definitions of Insanity: Lean 6σ – Doing the same thing over and expecting a different outcome! • AND – Using the same logic to get out of the trouble that got you there in the first place! Albert Einstein

Foundation to Lean 6 Sigma Lean 6σ • "To measure is to know. “ • "If you can not measure it, you can not improve it. “ • "…I often say that when you can measure what you are speaking about, and express it in numbers, you know something about it; but when you cannot measure it, when you cannot express it in numbers, your knowledge is of a meager and unsatisfactory kind ” Lord Kelvin

Right Training. Right Attitude Lean 6σ • Lean Six Sigma is not rocket science…you can do this • Lean Six Sigma is not “easy”…it requires dedication and effort • Lean Six Sigma is not the next program…it is a way of thinking…an approach to every task performed, that asks the question…“does this add value? ”

What is Lean? Lean 6σ • Identifying improvement opportunities in processes • Utilizes scientific problem solving methods • Focus on reducing non-value added steps in a process • Analyzing and improving process flows • Reducing complexity • Solving many smaller problems

Value-Added Activities Lean 6σ

The Lean Ladder Lean 6σ

Eight Types of Waste Lean 6σ • Wastes-Those Elements of a process that Do Not Increase the Value of a Product or Service as perceived by the Customer, but Increases Cost and Cycle times. – IDENTIFY AND ELIMINATE THESE WASTES: • Types of Waste: – – – – T Transportation I Inventory (Excess) M Motion W Waiting O Over-producing O Over-processing D Defects U Under utilization of employees

Learning Check • Why should Lean be considered? • What are Value added Activities? • What are some of the types of waste? Lean 6σ

What Is Sigma σ? Lean 6σ

What is Six Sigma? Lean 6σ A Philosophy for Quality Improvement Uses a structured approach to problem solving Utilizes Scientific Problem Solving Methods A Statistical Measure of Variability When Achieved, Reduces Defects in an Operation or Process to 3. 4 Defects per Million Opportunities DPMO • A Way to Achieve Significant Savings • Breakthrough Improvements in Performance • 6 σ is about making money • • •

Why Use Sigma As a Metric? Lean 6σ

Six Sigma Defined Lean 6σ Six Sigma: • Is a systematic methodology utilizing effective data analysis tools and techniques to improve performance by eliminating / preventing defects and inefficiencies’ in processes, to meet and exceed customer needs. • Derives from a 99. 99966% error free quality level OR less than 3. 4 errors per million opportunities

Learning Check • • What is Sigma σ? What is Six Sigma? Why use Sigma as a metric? Define DPMO Lean 6σ

Integrating Lean and Six Sigma • Natural evolution • Applies the right tools to a project • Leverages tools and methodologies to maximize process improvements • Reducing waste and variability go hand in process improvement Lean 6σ

What Lean Six Sigma is not Lean 6σ • A complicated way to manage your organization • Anew way for the “Quality Department” to audit reports and performance • Something that requires you to discard what you learned with TQM, CQI, etc. • A new way to spend money without clear benefit to the organization • Something that requires a complicated computer system • A way to eliminate jobs

History of Lean, Six Sigma Lean 6σ • Frederick W. Taylor: 1880 s-early 1900 s, systematic study of workers’ use of time and motion • Henry Ford: continuous flow production, waste elimination • TWI: (Training Within Industry), 1940 -1945 • W. E. Deming and Joseph Juran: took quality control to Japan in 1953 • Kiichiro Toyoda and Taiichi Ohno: low inventories, flexibility • U. S. supermarkets: pull systems • Shigeo Shingo: mistake proofing, reduced set up times • Toyota Production System NIKE • MIT and James Womack: bring Lean back to U. S. • NBC White Paper: If Japan can, Why can’t we? , 1980 s • Eli Goldratt: published book The Goal”, early 1980’s • Motorola: global deployment launched Six Sigma 1987, opportunity for error

Why Use Lean Six Sigma • LSS is the CPI industry standard – Increases throughput – Shortens cycle times – Reduces defects – Lowers cost Lean 6σ

Versatility Lean 6σ

When to Use the LSS Process • When to Use: Lean 6σ Driven by the Business Strategy Problems that “have been around as long as we can remember. ” Solution is not known or is not obvious You are willing to commit people to identify and resolve the issue You want a more definitive solution than traditional methods can provide – You want to encourage the upward flow of ideas and build team spirit – You want group ownership of a course of action – – – • When NOT to Use: – You don’t have a specific challenge or clear issue to solve – You already have a solution and course of action – You don’t have a consistent process to improve

Lean Six Sigma Principles Lean 6σ • Identify value in the eyes of the Customer – Learn to see your processes from the perspective of your customer • Identify the value stream and eliminate waste/variation • Make value flow at the pull of the customer • Involve, align, and empower employees – Develop solutions using the people who are currently working in the process • Continuously improve knowledge in pursuit of perfection

Continuous Improvement Lean 6σ • A framework for constantly improving organizational performance • Provides steady, incremental improvement in everything we do to meet/exceed changing expectations: – – Better quality Faster turnaround Lower costs More responsive service • A relentless, never-ending process • Requires that we all change the way we think talk work think, talk, work, and act

A Program of Process Improvement Lean 6σ Continuous Process Improvement (CPI) is a deliberate change in Process Performance

The Importance of Reducing Lean Variation 6σ • To increase a process Sigma Level, you have to decrease the variation • Less variation provides: – Greater predictability in the process – Less waste and rework, which lowers cost – Products and services that perform better and last longer – Happier customers

Foundation to Six Sigma Y = f(X) Y is: Xs are: Output Inputs Dependent Independent Observed Controlled Effect Causes Result Reason Lean 6σ

Identify and control the X’s Process output is A function of Lean Key process and input factors that cause variation in the output • Y = f(X 1, X 2, …) • In Improvement – Identify the key X’s to reduce variation in the Y • In Design – Carefully set specifications on the X’s so that we get the desired Y • In Process Management – Monitor and control the X’s to assure we will get the desired Y 6σ

Why Aim as High as 6 Sigma? Lean 6σ

The Look of 6σ Performance 3σ - 99% not defective 6σ – 99. 99966% not defective Lost articles of mail per hour 20, 000 7 Incorrect surgeries per wk 5, 000 1. 7 Wrong prescriptions each yr 200, 000 68 Hours without electricity 7 hr per month 1 hr per 34 years Lean 6σ

Culture of Performance Improvement Lean 6σ

Learning Check • Why combine Lean manufacturing with Six Sigma? • Why aim for 6σ? • How do you improve a sigma level? Lean 6σ

Overview of DMAIC Lean 6σ

The DMAIC Process Lean 6σ • Provides a structured approach for addressing problems • Provides a common language • Minimizes the risk of jumping to the wrong conclusion • Provides a checklist to prevent skipping steps • Each step has goals, tools and outputs • Tollgate reviews occur at each phase

Define • Goal Lean 6σ – Define project purpose and scope and obtain background information on the process and its customers • Outputs – Cleat statement of the intended problem and how to measure it – High-level process map – Key quality characteristics • Approach – Develop project charter – Map the process – Understand the voice of the customer

Measure • Goal Lean 6σ – Focus the improvement effort by gathering information about the current situation • Outputs – Baseline performance data – Common understanding of how the process currently operates – More focused problem statement • Approach – Collect data and check special causes – Create detailed process maps

Analyze • Goal – Identify root cause and confirm with data • Outputs – A tested and confirmed theory – Understanding of the effects of the inputs on the output • Approach – Explore and organize potential causes – Use statistical methods to quantify a cause-and-effect relationship Lean 6σ

Improve Lean 6σ • Goal – Develop, try out and implement solutions • Outputs – Planned and tested actions that eliminate or reduce the impact of root causes – Comparison of “before” and “after” data to show effects • Approach – Create possible solutions – Select solutions and develop plans – Implement plans and measure results

Control • Goal – Maintain the gains by standardizing work methods or processes • Outputs – Documentation of new methods – Train others in the new process – System for monitoring the new process • Approach – – Develop and document standard practices Train teams and monitor performance Create process for updating procedures Summarize and communicate learning Lean 6σ

Learning Check • What does DMAIC stand for? • Describe the DMAIC process? Lean 6σ

Lean Six Sigma Simulation • Score for your team • First round will use standard MRP batching process as defined by the instructor • Second round implement the changes suggested by the class using DMAIC • Each round will last 15 minutes • The team with the most point WINS!! Lean 6σ

Questions? Lean 6σ The Army OBT has more information on LSS and training opportunities. www. armyg 1. army. mil/leansixsigma/whatislss. asp Do you have any questions? Thank you for joining our discussion today.