Lean Sigma Catherine Jones
May 13, 2015
Lean Sigma Catherine Jones
What is Lean (Six) Sigma (LSS) A philosophy of doing business / a business
management strategy Lean Six Sigma combines the two most important improvement trends of our time:
Reducing the variation of the process and making work better (using Six Sigma methodology)
Making work faster and more efficient (using Lean Manufacturing principles).
Six Sigma
A statistical approach developed in Motorola
Increase quality through reduction of variation in manufacturing processes
Application of ‘tools’ PBC, 5Ys, Pareto analysis, DMAIC, PDCA etc
Lean W. Edwards Deming (October 14, 1900 – December
20, 1993) was an American statistician, professor, author, lecturer, and consultant.
JapanFord Motor Company
Deming advocated that all managers need to have what he called a System of Profound Knowledge, consisting of four parts:
Appreciation of a system: understanding the overall processes involving suppliers, producers, and customers (or recipients) of goods and services
Knowledge of variation: the range and causes of variation in quality, and use of statistical sampling in measurements;
Theory of knowledge: the concepts explaining knowledge and the limits of what can be known
Knowledge of psychology: concepts of human
nature.
Go to Gemba!Japanese word In business the value adding activities occur in ‘Gemba’
Gemba is the source of all information!
Benchmarking Deployed flow chartsIdentified common wastesVAFA (Value Added Flow Analysis)
Quality measuresSPC
Deployed Flow ChartCustomer Server Chef
Start Take seat Takes order
Cooked?
Place order
with chef
Pick up order
Cook food
Plate up food
Make and
serve drink
Toast?
Make and
serve toast
Cooked?
Collect and
serve
Enjoy breakfast
Baseline measurements
Product Science (hours)
Cycle time (hours)
Turnaround time (Days)
A 0.5 3.75 16
B 1.25 4.6 17
C 2.0 7 30
D 1.5 7.3 31
Common WastesHandoversQueuingStorage Multiple checksMultiple SAP screens (IT)ReworkingInter site transfersAdministration (MI, time recording etc)
Quality Measures
02468
101214161820
Rec
ord
s
Met
ho
d
An
ti C
on
tam
iona
tion
Tri
anin
g &
C
om
ps
Eq
uip
men
t
Exh
ibit
Man
agem
ent
Val
idat
ion
Sec
urity
Rep
ort
s /
Sta
tem
ents
Tim
lines
s
Ref
mat
eria
ls
Number of Drugs Quality Actions
timel
ines
sCos
t
Comm
unicat
ion
Respo
nse
048
SPC
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
Average Daily Imperfections with Control Limits
Average Daily ImperfectionsSample MeanLower Control LimitUpper Control Limit
Developing ‘to be’ scenariosBrainstorming ‘To be’Produced high level DFCPDCA – paper trialsData collection
Voice of the customerWheel sessions QuestionnairesGemba
Data collectionDFC for ‘to be’Test planOperational definitions‘Tag points’AssumptionsRolesTrial lab layoutObservations
Central versus Local analysisPugh Matrix
Key Criteria Rating
As-is Central Local analysis
Calibration standards 4 + sCourier costs 3 _ +Validation 5 + _Equipment 4 s _Sum of positives 2 1
Sum of negatives 1 2Sum of sames s sWeighted sum of positives
9 3
Weighted sum of negatives
3 9
Total sum 6 6
Centralisation v Local Cause and Effect effect – TRTs greater than 24 hours, can not
meet require deadline
Trt exceeds 24 hours
Pareto charts
Time Quality Cost Service Sales Other0
5
10
15
20
25
30
35
40
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
100.00%
Cause Cumulative
Continuous ImprovementKaizen
Kai = ChangeZen = Good (for the Better)
The Basic Philosophy Is to Involve All Employees in Small, Daily Improvements within their Work Areas.
SummaryMeasurement should be the means
to improve understanding People will do what is counted not
what countsUse customer data to drive changeIf you manage by targets people
cheat!
“Efficiency is doing things right. Effectiveness is doing the right thing.” -Zig Zigglar (Author, salesperson and motivational speaker)
“The point is…you’d better figure out what your Customers
– the Customers you want – value. Because that’s what they’ll buy.
Anything else is a waste of their money, and they’ll figure that out in a hurry.”
– Gordon Bethune (retired US airline executive. He was the CEO of Continental Airlines from 1994 until his retirement at the end of 2004)