Learn About Lean Six Sigma and Blended e-Learning and Earn ...

20th Anniversary ConferenceSinclair Community College

Dayton, OH Wednesday, October 1, 2008

Learn AboutLean Six Sigma and Blended e-Learning

and Earn Your “White Belt” Certification

in One Easy Lesson!

Diane RitterDirector of Business Excellence

The Quality Group

AgendaAgenda

PART I: Introduction to Lean Six Sigma– What is Lean Six Sigma?– How is Lean Six Sigma Different?– Lean Six Sigma Benefits– Concept of Process– Lean Six Sigma Methodology: DMAIC– Ensuring Success– White Belt Exam

PART II: Introduction to Blended e-Learning– Blended Learning– Q & A

PART I:PART I:Introduction to Introduction to Lean Six SigmaLean Six Sigma

Are You Achieving Your Are You Achieving Your OrganizationOrganization’’s Purpose?s Purpose?

• What’s your organization’s purpose?

• Who are your customers?• What do they want?• Are you delivering what they want?• If not, what is it costing

your organization?• What can we do about it?

In Business TodayIn Business Today

• Technology edges last less than a year

• Global competition exists in all markets

• Quality is a given; the new advantage goes to the swiftest and the lowest cost producer

• There are better ways of conducting business

Business SuccessBusiness Success

CI brings together L & SSCI brings together L & SS

Lean Six Sigma

• Taiichi Ohno of Toyota was the primary architect.

• Developed to attack the eight types of manufacturing waste.

• Tools and methods evolved by trial and error over 40 years resulting in the Toyota Production System or JIT.

• Motorola is credited with the popularization of Six Sigma in 1987.

• Based on Shewhart(20’s), Deming & Juran(50s), plus others

• General Electric put Six Sigma into practice in the mid 1990s. This was a turning point for Six Sigma.

• Data analysis and statistical tools

What is Lean?What is Lean?

Lean is a concept and methodology that focuses on __________________________ _____ _____

__________________ that promotes efficiency by

______________________ __________ and ______--_____ _____

____________ ____________________.

Types of LSS WasteTypes of LSS Waste

D

O

W

N

T

I

M

E

The Many Facets The Many Facets of Six Sigmaof Six Sigma

PhilosophyPhilosophyBusiness Business StrategyStrategyBenchmarkBenchmarkMethodMethodToolsToolsMetricMetric

ValueValueGoalGoal

Part of the Culture: “The way we work”Philosophy

Means to meet organizational goalsBusiness Strategy

Compare to others: apples-to-applesBenchmarkSystematic Process: DMAIC & DMEDVIMethodLean, Statistical, Team Decision MakingTools

We calculate & measure it for any processMetric

Program that delivers $Value3.4 Defects per Million OpportunitiesGoal

66σσ

Lean & Six Sigma GoalsLean & Six Sigma Goals

Lean and Six Sigma have a different focus, but they share the same goals

Lean and Six Sigma Lean and Six Sigma ––Process and ToolsProcess and Tools

Lean Six Sigma is NOTLean Six Sigma is NOT……

• It’s not just STATISTICS

• It is not ONLY a cost-reduction program, although cost-reduction is a benefit

• It is not a rigid approach, but flexible to meet the specific needs and goals of an organization

How is Lean Six Sigma How is Lean Six Sigma Different? Different?

• Management• Training• Measurements• Project Selection• Roadmap

How is Lean Six Sigma How is Lean Six Sigma Different? Different?

• Management• Training• Measurements• Project Selection• Roadmap

How is Lean Six Sigma How is Lean Six Sigma Different? Different?

• Management• Training• Measurements• Project Selection• Roadmap

How is Lean Six Sigma How is Lean Six Sigma Different? Different?

• Management• Training• Measurements• Project Selection• Roadmap

How is Lean Six Sigma How is Lean Six Sigma Different? Different?

• Management• Training• Measurements• Project Selection• Roadmap

Process FocusedProcess Focused

• A process is a sequence of events/steps which lead to a particular end product or service.

Equipment

People

Materials

Policies

Environment

End Product

or Service

End Product

or Service

Product or

Service

Product or

Service

Process Step

Process Step

• • •

Inputs Value Add Output/Input Final Output

Process ConceptsProcess Concepts

•• 94%94% of problems are in the process; 6%6% are with the workers or due to special causes.

• Teams can improve processes to solve problems.

•• WorkersWorkers are responsible for doing the work within the system; ManagersManagers are responsible for improving the system.

• Workers know where to find the problems and the solutions.

Why be so Good?Why be so Good?99% just isn99% just isn’’t good enough!t good enough!

3.8 Sigma(99% Good)

2 short or long landings at most airports each day15 minutes of unsafe drinking water each day750 dropped babies in the US each week200,000 wrong drug prescriptions each year

6 Sigma(99.99966% Good)

1 short or long landing every 5 years1 minute of unsafe drinking water every 7 mo.13 dropped babies a year

68 wrong prescriptions per year

Another ExampleAnother ExampleAnother Example………

Lean Six Sigma: Lean Six Sigma: From Apples & OrangesFrom Apples & Oranges……

• Provides a single measure that can be used to compare the performance of different operations.

Process PerformanceCall Servicing 32+/-5 second average speed of answerBilling 98+/-1% accuracyAccounts Receivable 33+/-2 days average agingCustomer Service 82% Rated 4 or 5 on responsiveness

• Which Process is Performing Best?

Lean Six Sigma: Lean Six Sigma: ……to Apples to Applesto Apples to Apples

Six Sigma translation!

Six Sigma translation!

• Now which process is the best?

Process Sigma PerformanceCall Servicing 3.1 SigmaBilling 3.8 SigmaAccounts Receivable 4.2 SigmaCustomer Service 2.6 Sigma

• Now, where would you invest?

Radio Station WIIFMRadio Station WIIFM

• Participate in decision making

• Work as a team to improve your processes

• Increase pride and satisfaction in job performance

• Create a more interesting and challenging job

• Apply practical education directly to the job

• Expand potential for career opportunities and advancement. WIIFMWIIFM

Lean Six Sigma SuccessLean Six Sigma Success

Lean Six Sigma

Success

Lean Six Sigma

Success

What are the driving and restraining forces to implementing Six Sigma at your organization?

DMAIC PrinciplesDMAIC Principles

• D______ opportunities

• M_______ current performance

• A_______ root cause of problems

• I_______ the process

• C_______ process performance to ensure process quality

DMAIC: The DMAIC: The MediMedi--Lift Lift Helicopter Co.Helicopter Co.

• Manufacturer of single and twin-engine helicopters, known for:– reduced maintenance– higher safety– lower noise

• Their customers provide search & rescue services

• Company commitment to offering the best-quality, best-value helicopters withstate-of-the-art technology

DEFINEDEFINE

Tools:– Project/Team

Charters– SIPOC– VOC– ID CTQ’s/Y’s– Pareto Chart– Process Map/Value

Stream Map (current)

Deliverables:– Problem Statement– Verified Project– Initial Financial

Validation– Initial Team Meeting

MeasureMeasure

Deliverables:– Detailed process

description– Process

performance– Process baseline

capability

Tools:– Identify Process

Paramters/X’s– Pareto Chart– Run Chart– Histogram– Baseline Capability– Cost of Poor Quality– Measurement

System Analysis

DMAIC Simulation: Paper DMAIC Simulation: Paper HelicoptersHelicopters

Using paper helicopter #1 (longer rotors ) collect 5 data points.

Fold

AnalyzeAnalyze

Deliverables:– Understand data

relationships– Validate input and

output process variables

– Prioritize input variables as sources of variation

– Validate Root Cause

Tools:– Y=f(X)– Scatter

Diagram/Correlation Analysis

– Cause & Effect Diagram/ Matrix

– Histogram– FMEA– Box Plot– Multi-vari Charts– Basic Statistics– Hypothesis Testing– Analysis of Variance

(ANOVA)– Update Process Map/Value

Stream Map (Future)

ImproveImprove

Deliverables:–Confirmed

correlations between process input and output variables

–Defined process improvement and capability

–Plan for improvement implementation

Tools:– Solution Design Matrix– DOE– Kaizen Event– Standard Work– Visual Management– Error Proofing– Changeover Reduction– TPM– Workplace Design &

Layout– Flow & Pull Systems– Gantt Chart– Force Field Analysis

DMAIC Simulation: Paper DMAIC Simulation: Paper HelicoptersHelicopters

Using paper helicopter #2 (shorter rotors ) collect 5 data points.

Fold

ControlControl

Deliverables:– Formal Control Plan– Detailed

documentation of process improvements

– Confirm new process capability

– Communication of results

– Final financial review of results

– Final project report

Tools:– Control Plan– Control Chart– Training– Work Standards

(SOPs)– Leverage ideas

Active Lean Six Sigma Active Lean Six Sigma Programs:Programs:

Manufacturing• AlliedSignal/

Honeywell• Motorola• Black & Decker• Whirlpool• Bombardier• Seagate• Texas Instruments• Raytheon• Ford Motor Co.• Owens Corning• Caterpillar• Toshiba• Lockheed Martin• Sun Microsystems• Nokia• And many others

Conglomerates• AT&T• GE• TRW• ABB (Asea Brown

Bovari)Pharmaceuticals• Johnson & Johnson• Wyeth Ayerst LabsE-Commerce• AmazonRetail• Circuit City• Home DepotHealthcare• Mount Carmel

Health Systems• Virtua Health

Financial/Services• American Express• Bank of America• Citibank• GE Asset Mgmt.• GE Capitol Services• GE Global Property

& Casualty• J.P. Morgan Chase

& Co.• Mellen Bank• Merrill Lynch• American Red

Cross• United AirlinesHospitality• Starwood Hotels• Ritz Carlton

The Benefits of Lean Six The Benefits of Lean Six SigmaSigma

• Improved bottom line for the business

• Factually driven solution, rather than emotion and “gut feel”

• Supports implementation of the strategic business plan

• Systematic elimination of waste and poor quality issues

• Helps develop leaders

• Increased customer satisfaction

Key Actions for Success in Key Actions for Success in Lean Six SigmaLean Six Sigma

Management commitment and staff support

Greatest impact when linked to effective, cyclical strategic planning

Identify high impact, revenue generating projects that align with strategic plans

Invest in training for key roles

Design and implement a metric system for tracking progress

Consistently conduct business reviews to maintain focus and direct activities

Final ExerciseFinal Exercise

• 26 questions/answers• 1 sheet of paper

© 2008 The Quality Group LEAN SIX SIGMA OVERVIEW - 39

Lean Six Sigma Lean Six Sigma -- SummarySummary

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© 2008 The Quality Group LEAN SIX SIGMA OVERVIEW - 40

NotesNotes