Lean Six Sigma Awareness Handouts

04/10/23 1

Lean Six SigmaHelpful Handouts

04/10/23 2

Lean Thinking Philosophy

Current State

Current State

FutureState

FutureState

Solve Problems

Solve Problems

ExposeProblems

ExposeProblems

Identify and eliminate all activities that are waste (Muda). Focuses on optimal flow throughout the process. Customer focused.

“True North”Value Added Time = Lead Time

Full of Waste, Variation, and Constraints

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Lean Six Sigma Roles

Provide data and voice of customer inputs to VSA, RIE, and ProjectsApply concepts to their own jobs and work areas

Owns vision, direction, business resultsLeads changeAllocates ResourcesRuns Steering Committee

Owns Value StreamsOwns financial resultsRemoves BarriersCoordinates with SteeringCommittee & LSS DeploymentLead

Leads larger projects Coaches Green Belts & Junior BBsFull-time or Part-time positionConducts LSS TrainingDevelops LSS strategic plans

Lead projectsSME on process areaPart time role

Team or Project specific supportPart time

Internal Deployment LeaderOwns Deployment PlanCaptures and Reports Metrics

LSS DeploymentLSS DeploymentLeadLead

Brian GroarkeBrian Groarke

Value StreamValue StreamChampionChampion

TeamTeamMembersMembers

ExecutiveExecutive ChampionChampion

Celia MetzCelia Metz

Green BeltsGreen Belts

MasterMasterBlack BeltBlack BeltDuke SorensenDuke Sorensen

ProcessProcessOwnersOwners

Sponsors LSS projectsResponsible for executionProvides resources for projectReports ROIRemoves Roadblocks

All Employees

Trains Black Belts / Green BeltsLeads Complex Projects Full-time position

Black BeltsBlack Belts

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Future Notional View of SSC SD LSS Hierarchical Structure

SSC-SD

MBB/BBs

Division

Black Belt

Division

Black Belt

Division

Black Belt

Division

Black Belt

Division

Black Belt

Department

Sr. Black Belt

Branch

Green Belt

Branch

Green Belt

Branch

Green Belt

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LSS Green Belt Certification Requirements

• Nominated and selected as a Green Belt Candidate in accordance with the GB selection criteria

• Attend 1 week Green Belt Training• Pass Green Belt written test• Complete two GB DMAIC/DFLSS projects or 4 RIE’s

within 2 years of training• Present project completion brief to Black Belt and

archive project artifacts in the LSS database

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LSS Black Belt Certification Requirements

• Nominated and selected as a Black Belt Candidate in accordance with the BB selection criteria

• Attend 1 week Green Belt Training• Attend 3 weeks Black Belt Training• Attend leadership training (e.g. HPO)• Pass Black Belt written test• Complete two DMAIC/DFLSS projects and 1 RIE • Mentor 2 Green Belts through 1 project each or 3 RIE’s

each• Present a minimum of 10 hours of formal LSS training

course instruction• Present project briefing to the certification board

– Requirements must be completed within 2 years of BB training

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DMAIC Model

DEFINE MEASURE ANALYZE

IMPROVE CONTROL

Define the Problem• Define Scope /

Boundaries• Define the Case for Action• Define the Sponsor• Commit Resources

Define Customer ValueDefine Expected BenefitDefine the Vision

Observe “As Is” Baseline• Describe the Situation

Measure Actual• Obtain Process X’s• Obtain Process Y’s• Determine Process Capability

Develop Process MapDetermine Cause and Effect Relationships

Understand• ID Potential Causes• ID Solutions for Improvement• Summarize & Prioritize Solutions• Plan the Improvements

Reduce WasteReduce ComplexityReduce VariabilityConduct Pilots

• Run Pilots, Gather Data• Design Controls• Plan Implementation• Deploy Improvements

Implement ControlsAssess and AdjustTrain personnel

• Update PrioritiesPlan Next Steps

• Identify Potential Follow-on Projects

Publicize & RecognizeKnowledge Sharing

Tollgates prior to proceeding to Next Phases

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Step 1: DEFINE• Goal

– Define the project’s purpose and scope and get background on the process and customer

• Output– A clear statement of the

intended improvement and how it is to be measured

– A high level map of the process

– A list of what isimportant to thecustomer

IMPROVE

Pro

ject

C

hart

er

VO

CSIP

OC

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Step 2: MEASURE• Goal

– Focus the improvement effort by gathering information on the current situation

• Output– Baseline data on

current process performance

– Data that pinpoints problem location or occurrence

– A more focused problem statement

IMPROVE

Determine Measuresbased on CTQs

Measure

As-Is

Patterns

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Step 3: ANALYZE

• Goal– Identify root causes

and confirm them with data

• Output– A theory that has

been tested and confirmed

Data

Analy

sis

IMPROVEA

nalyze waste

and variation

Identify rootcauses

Process

Analysis

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Step 4: IMPROVE

• Goal– Develop, try out,

and implement solutions that address root causes

• Output– Planned, tested

actions that should eliminate or reduce the impact of the identified root causes

Solutions

FMEA

Pilot

Imple

men-

tatio

n

IMPROVE

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Step 5: CONTROL• Goal

– Use data to evaluate both the solutions and the plans

– Validate that all changes adhere to all operating company change control, and compliance requirements

– Maintain the gains by standardizing processes

– Outline next steps for on-going improvement including opportunities for replication

• Output– Before and After analysis– Monitoring system– Completed documentation of

results, learnings, and recommendations

Co

ntro

l

Stan

dard

ize

Docum

ent

MonitorEvaluate

Closure

IMPROVE

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DesignIdentify Optimize VerifyDefineDefine

1-Description/ Problem Refined

2-Business Case Approved (StartIt Page and Assumptions in Briefing)

3-Schedule Established4-Quad

1-Customers Identified2-Customer Needs

Gathered (VOC)3-CTQs Specified (In

Measurable Terms)

4-Stakeholder Analysis5-Risks Quantified

(Initial Mitigation Approach Identified)

1-Design Concepts Developed (Functional

Analysis, High Level Requirements, Mapping of these to CTQs)

2-Alternative Concepts Evaluated (Trades) and Optimum Solution Selected (with rationale presented)

3-High Level Design Developed (e.g., architecture, next level process steps, etc.)

4-High Level Design Evaluated Against CTQs/ Requirements

1-Detailed Design Developed (Design captured How, Process Work Instruction Steps Developed, etc.)

2-End Product* implemented then piloted or simulated (Describe this)

3-End Product Optimized (Describe how)

4-Identify Specific post-institutionalization control measures to be monitored (What to Measure)

1-End product Verified that it does satisfy CTQs (and all requirements identified during earlier phases)

2-End Product “Roll-Out” Plan Established and “Bought Into” (By Process Owner, When? How Trained?, etc.)

3-Control Plan Defined/ Established (What Metrics, Who, How Often, etc.)

4-Financial Validation Plan Established (How, Who, How Often, etc.)\

5-Replication Opportunities Identified

6-Lessons Learned Summarized

DFLSS Model

Tollgates prior to proceeding to Next Phases

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SSC SD Balanced Scorecard

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Measuring an Organization’sLean Six Sigma Maturity

• In a Lean Six Sigma culture:

– The leadership team drives Quality

– Quality is embedded in our strategy

– Lean Six Sigma is built into project planning

– Targets are set in Six Sigma terms

– Everyone is Lean Six Sigma trained

– Lean Six Sigma tools are widely used

– Quality is a core theme in communications

– Everyone is engaged

– Lean Six Sigma defines the way we work

Mat

uri

ng

Lea

n S

ix S

igm

a C

ult

ure

Key Performance Indicators (KPI):

• Utilization of Trained Personnel

• Participation of Workforce in Projects

• Training of Workforce

• Certification of Green and Black Belts

• Contribution to Business KPI

Level 5• Utilization of Trained Personnel = 100%• More than 40% Participation in Projects• 80% or more of Workforce Trained• >70% of Trained Belts Certified• LSS Contribution to Business KPI > 20%

Level 5• Utilization of Trained Personnel = 100%• More than 40% Participation in Projects• 80% or more of Workforce Trained• >70% of Trained Belts Certified• LSS Contribution to Business KPI > 20%

Level 4• Utilization of Trained Personnel = 100%• 30 to 40% Participation in Projects• 60 to 79% of Workforce Trained• 55 to 70% of Trained Belts Certified• LSS Contribution to Business KPI 16-20%

Level 4• Utilization of Trained Personnel = 100%• 30 to 40% Participation in Projects• 60 to 79% of Workforce Trained• 55 to 70% of Trained Belts Certified• LSS Contribution to Business KPI 16-20%

Level 3• Utilization of Trained Personnel >75%• 20 to 29% Participation in Projects• 40 to 59% of Workforce Trained• 40 to 54% of Trained Belts Certified• LSS Contribution to Business KPI 11-15%

Level 3• Utilization of Trained Personnel >75%• 20 to 29% Participation in Projects• 40 to 59% of Workforce Trained• 40 to 54% of Trained Belts Certified• LSS Contribution to Business KPI 11-15%

Level 2• Utilization of Trained Personnel > 50%• 10 to 19% Participation in Projects• 20 to 39% of Workforce Trained• 25 to 39% of Trained Belts Certified• LSS Contribution to Business KPI 5-10%

Level 2• Utilization of Trained Personnel > 50%• 10 to 19% Participation in Projects• 20 to 39% of Workforce Trained• 25 to 39% of Trained Belts Certified• LSS Contribution to Business KPI 5-10%

Level 1• Utilization of Trained Personnel <50%• < 10% Participation in Projects• Less than 19% of Workforce Trained• Less than 25% of Trained Belts Certified• LSS Contribution to Business KPI ≤ 5%1

Level 1• Utilization of Trained Personnel <50%• < 10% Participation in Projects• Less than 19% of Workforce Trained• Less than 25% of Trained Belts Certified• LSS Contribution to Business KPI ≤ 5%1

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LSS and CMMI are Complementary Improvement Initiatives

Lean Six Sigma

CMMI

Lean Six Sigma focuses on designing the best processes to reach the

desired end state

Integration of these two organizational

improvement initiatives is powerful!

CMMI provides guidance for measuring,

monitoring and managing processes

Both are business strategies to deliver value to the customerand develop a sustainable competitive advantage

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Examples of LSS Tools for Project Management Guide Implementation

PMG Function

Activity LSS Tool

Initiation Determining customer needs Project Description/Team

responsibilities/SOW Determine needed mgt and engineering

processes

Voice of the Customer Project and Team Charters Value Stream Analysis

Planning

Identify Risks Conduct Peer Reviews

Failure Modes and Effects Analysis DMAIC – Improve existing peer review

process Execution

Design the product or service solution Review for Defects Implement QA methods

DFLSS – Design it right the first time Root Cause Analysis Control Plans – Plan/Do/Check/Act

Control Measure Project Performance Statistics tool bag