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Lean Six Sigma Approved for Public Release
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Lean Six Sigma Approved for Public Release. Lean Six Sigma 2 Overview What is Lean Six Sigma? What can Lean Six Sigma do? How to get started Approved.

Dec 22, 2015

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Page 1: Lean Six Sigma Approved for Public Release. Lean Six Sigma 2 Overview What is Lean Six Sigma? What can Lean Six Sigma do? How to get started Approved.

Lean Six Sigma

Approved for Public Release

Page 2: Lean Six Sigma Approved for Public Release. Lean Six Sigma 2 Overview What is Lean Six Sigma? What can Lean Six Sigma do? How to get started Approved.

Lean Six Sigma2

Overview

• What is Lean Six Sigma?

• What can Lean Six Sigma do?

• How to get started

Approved for Public Release

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Lean Six Sigma3

Paths to Cost Reduction

• Cut services• Reduce labor (lay-off)• Contract work out • Eliminate product features

• Remove roadblocks so your employees can produce

• Assign resources to bottlenecks

• Maximize internal capabilities• Focus on what the customer

wants to buy

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What is Lean Six Sigma?Combined 2 industry concepts:• Lean• Six Sigma

Combines problem solving tools:

JIT - PullJIT - Pull

5S5S

Value Value Stream Stream

MappingMapping

VisualVisualMgt.Mgt.

KanbanKanbanANOVAANOVA

KaizenKaizen

Setup Setup ReductionReduction

DFSSDFSS

Root Cause Root Cause AnalysisAnalysis

Hypothesis Hypothesis TestingTesting

DOEDOE MSAMSASPCSPC

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Lean

• Focus on what is of VALUE to the customer• Separate non-value added from value added

– Map the actions required to produce (value stream)– Eliminate activities that do not move the product

closer to its final form

• Make the remaining value added activities flow smoothly

• Produce only what customers need (pull)• Continuous improvement

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Which is the better airline ticket?

Ticket A• $500 round trip• 6 hours• 3 layovers• Arriving in NYC

Ticket B• $650 round trip• 3 hours• 1 layover• Arriving in

Groton/New London

Traveling to Groton, CT

What does What does valuevalue mean to you? mean to you?What does What does valuevalue mean to you? mean to you?

Approved for Public Release

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Lean Philosophy

Value– More to value than just cost– “Defined by the ultimate customer” – Womack

• Voice of the Customer (VOC)

– Expressed in terms of • A specific product• A function or capability

– Questions• What does the customer want to buy?• What would they pay extra for?

Focus on what is of VALUE to the customerFocus on what is of VALUE to the customerFocus on what is of VALUE to the customerFocus on what is of VALUE to the customer

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Types of ActivitiesValue-Added

– Brings product closer to it’s final form– Changes the form, fit or function – An activity the customer is willing to pay for

Non-Value-Added– Does not contribute to bringing the product to it’s final form– Doesn’t improve the form, fit, or function of the product or service

on the first pass through the process.– An activity the customer is not willing to pay for– Waste

Separate non value added from value addedSeparate non value added from value addedSeparate non value added from value addedSeparate non value added from value added

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8 Types of Waste

UNDER-UTILIZED SKILLS

Steps are wasteful, people are valuableSteps are wasteful, people are valuableSteps are wasteful, people are valuableSteps are wasteful, people are valuable

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(2) Tapped holes for lifting

Lean Example

Valve Manufacturing• Objective: Reduce time to produce valves• Solution: Revise process – no temporary attachments

“Feet”

“Legs”Lifting Blocks

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Lean Example

Certification Package

Not Required

Redundant ReviewMill Test Report

Minimize Rework

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Batch versus Continuous Flow

ProcessA

ProcessB

ProcessC

10 Minutes10 Minutes

10 Minutes

30+ Minutes for order of 10

Batch & Queue Processing

Continuous Flow

ProcessA

ProcessB

ProcessC

12 Minutes for order of 10

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Lean ApproachBatch

Dept 1

Dept 2

Dept 4

OUT

DONE

OUT

OUT

OUT

IN

IN

IN

IN

DONE

IN

4 3

1 2Dept 3

Continuous Flow

Batch processing has a direct impact on the total Work-in-Process

From: NAVSEA VSA Training

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Value-Added time is typically only a small Value-Added time is typically only a small percentage of the total timepercentage of the total time

Value-Added time is typically only a small Value-Added time is typically only a small percentage of the total timepercentage of the total time

Lean Approach

TimeBroken

ComponentRepaired

Component

WaitTransport

Transport WaitSet-up

= Value Added Time = Non-Value-Added Time (WASTE)

Machine Machine

Disassemble

Start Finish

Re-InstallRemove From

Ship

From: NAVSEA VSA Training

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Lean Approach From: NAVSEA VSA Training

Date / Reference / Classification

Overtype with Section Title

Total Lead-time = 48 daysValue added time = 315 secs !!!!

Date / Reference / Classification

Overtype with Section Title

-Total Lead time = 48 daysValue added time = 315 secs !!!!

-

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Lean Approach

Time

Lean Focus• Make all of the Value Stream visible• Reduce or eliminate Non-Value-Added portions

of the process• Result: Large time savings

Traditional Focus

• Improve Value-Added work steps

• Better tools, machines, instructions

• Result: Small time savings

Amount ofTime Eliminated

Time savings have a direct impact on

• Cost • Capacity• Schedule • Flexibility• Resources • Etc.

LARGE amountSmall

of time saved

From: NAVSEA VSA Training

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Continuous Flow

Traditional Thinking:Batch Production—like a meandering

stream with many stagnant pools, waterfalls, and eddies

Doubling production rate means doubling resources

Continuous Flow Thinking:Pipeline with fast-flowing product –

no stops, piles, or back-upsDoubling production rate means

halving the time waiting

“’“’Flow’ production was an even more valuable innovation of Henry Flow’ production was an even more valuable innovation of Henry Ford’s than his better-known ‘mass’ production model.”Ford’s than his better-known ‘mass’ production model.”

“’“’Flow’ production was an even more valuable innovation of Henry Flow’ production was an even more valuable innovation of Henry Ford’s than his better-known ‘mass’ production model.”Ford’s than his better-known ‘mass’ production model.”

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How Does Lean Solve Problems?

• Focuses on what is of VALUE to the customer– Understand customer expectations and

requirements– In terms of the what the product provides, not

just the product itself

• Eliminates activities that do not move the product closer to it’s final form– Reduces the 8 types of waste

• Creates continuous flow

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Six Sigma Philosophy

• Reduce variation

• Y=f(X)

• Making decisions based on data

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What is “Six Sigma”?Change in quality philosophies

Traditional “Goalpost” Philosophy

USLLSL

LossLoss

$$$$LossLoss

$$$$

Anything outsidethe specification limits

represents quality losses

OK

Taguchi PhilosophyUSLLSL

Any deviation fromthe target causeslosses to society

LossLoss

$$$$LossLoss

$$$$Loss

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How Does Six Sigma Solve Problems?

Practical ProblemPractical Problem(Define/Measure)(Define/Measure)

Statistical Problem Statistical Problem (Analyze)(Analyze)

Practical SolutionPractical Solution(Control)(Control)

Statistical SolutionStatistical Solution(Improve)(Improve)

Y=f(x) Approved for Public Release

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Six Sigma Example

• Practical Problem– Pass rate for Technicial Exams was declining

• Statistical Problem– Y=f(X)– Y – Scores– X

• Exam section• Place of training• How often skills are used (experience)• Elapsed time since training

• Statistical Solution– 3 sections of the exam are the highest trouble spots– Experience is the most significant factor in passing

• Practical Solution– Focus training on 3 areas for inexperienced technicians

Approved for Public Release

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What is “Six Sigma”?99.99966% of values are within specifications

USLLSL

A 6 Process

A 3 ProcessApproved for Public Release

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Is “Six Sigma” Overkill?

• 20,000 lost articles of mail per hour

• 15 minutes of unsafe drinking water each day

• 5,000 incorrect surgical operations per week

• 2 short or long landings at most major airports each day

• 11 hours of no electricity per month

• 7 lost articles of mail per hour

• 1 minute of unsafe drinking water per 7 months

• 1.7 incorrect surgical operations per week

• 1 short or long landing every 5 years

• 1 hour of no electricity every 34 years

99.99966% (6)99% (≈3.8)

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Pipe Welding Quality

Reduce concave & convex defects in pipe butt welds

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