INTRODUCTION TO
LEAN SIX SIGMA:
A Course Overview
Jorge Luis Romeu, Ph.D.
Quanterion Solutions Inc.
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Defining Quality
Quality is in the eyes of the beholder
• Fitness for use …
• Customer satisfaction and loyalty …
Customer Focus/Customer Centered
Measuring Quality:
• Service speed, accuracy, availability
• Courtesy, information, follow-up ...
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Defining Quality:
Big “Q” versus Little “Q”
• From the Old to the New Quality
The Cost of Poor Quality (COPQ)
• Up-Front and Hidden Costs
Delight your Customers:
• Improve Quality and Speed
Improve your Processes:
• Decrease Variation, Defects and Time
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Two approaches to Quality
Little “q”
• Traditional quality function:
• Reactive, finding issues, manufacturing
• Control Charts, Acceptance Sampling
Big “Q”
• New approach to Quality:
• Proactive, preventing, all services
• Product as well as Process
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Two Dimensions of Q
Features
• Affects income (sales)
• Ease of use, appearance, price, etc.
• Refers to Quality of Design
Freedom from Deficiencies
• Affects service costs
• Defects, failures, waste, etc.
• Refers to Quality of Conformance
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Cost of Poor Quality (COPC)
Types: up-front and hidden costs
Difficult to notice and/or recognize
Service defects (unavailability)
Inefficient processes (slow)
Lost opportunities (sales/revenues)
Appraisal and Prevention costs
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Improvement Advantages
Quality Improvement pays!
• Increases customer loyalty
• Increases your reputation
• Increases customer base
• Reduces customer complaints
• Reduces warranty costs
• Reduces service time/costs
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Improve your Process Quality
Optimize Process Flow: Lean
• Document how work gets done
• Examine and improve work flow
• Eliminate waste and non-value added
Minimize Variation: Six Sigma
• Variation, variability and variance
• Variation defines the Six Sigma level
• Identify factors that increase variation
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Lean Manufacturing and Kaisen
Kaisen: Continuous Improvement
• Achieved by reducing the three Evil M’s
• Muda: waste or non-value added
process activities
• Mura: inconsistent use of people
And of processes
• Muri: excessive demands on people
And on processes
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Lean Manufactuging and the 5 S’s
The Five Kaisen Principles
• Sort: keep only necessary things
• Set in Order: arrange efficiently
• Shine: maintain cleanliness/avoid clutter
• Standardize: proceed consistently
• Sustain: cooperative working environment
Use Team Effort to Succeed!
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The Eight Wastes
Overproduction: too much or too early
Waiting: for information, people, materials
Transportation: moving things around
Process Design: too many or too few steps
Inventory: work in progress, electronic files
Motion: poor layout and ergonomics
Defects: errors, scrap, rework, etc.
Under-utilization: of personnel or resources
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The Seven Basic Quality Tools
Flow Charts
Ishikawa Diagrams
Check lists
Pareto Charts
Histograms
Scatter Diagrams
Control Charts
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Some Uses of these Tools
Pareto Charts
• Identify the Relevant Few Factors
Ishikawa Charts
• Identify Factors Impacting Response
Affinity Diagrams
• Groupings of Similar Ideas
Check Lists
• Provide Order and Inclusion
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Example of Pareto Chart
P a r e to C h a r t fo r S p e c ia l
100
60
50 80
C ount 40 P e rc
60
30
40
20
20
10
0 0
Q&R M E C hem IE U nkn EE M a t e r ia l s C iv il O th e r s
S p e c ia lt y
C ount 13 11 11 10 6 5 4 3 1
P e rc e n t 2 0 .3 1 7 .2 1 7 .2 1 5 .6 9 .4 7 .8 6 .2 4 .7 1 .6
C um % 2 0 .3 3 7 .5 5 4 .7 7 0 .3 7 9 .7 8 7 .5 9 3 .7 9 8 .4 1 0 0 .0
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Ishikawa or Fishbone Chart
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Control Chart for Number of Errors
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Value Stream and State Maps
Flowchart of process activities (map)
Include in each node, information on:
• Average Time in Node
• Up Time (percentage)
• Delays and Queues
• Activity Yield/Output
• Manpower Required
• Other Information
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Value-Added work
The contribution to item real value
• Is in the eyes of your customer
Non-Value-Added work (waste)
• Can be dismissed without loss
Main Goal of Lean (and Six Sigma)
• Eliminate all possible waste
Identify waste in the process flow!
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SIPOC Charts for Key Activities
Supplier:
Who provides you with input?
Input:
What input is being provided?
Process:
What do you add to product?
Output:
What is such contribution result?
Customer:
Who do you pass the product to?
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Example of House of Quality
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Six Sigma Philosophy: DMAIC
1. Define: identify areas of variability
2. Measure: data collection
3. Analyze: relevant information
4. Improve: selected areas
5. Control: manage changes
• Result: Sustained change.
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Assessing Process Capability
Improved Process Capability
LSL USL
P rocess Data Within
LS L 24 Ov erall
Target *
USL 36 P otential (Within) C apability
S ample M ean 29.9272 Cp 1.12
S ample N 100 C PL 1.11
S tD ev (Within) 1.7824 C PU 1.14
S tD ev (O v erall) 1.84826 C pk 1.11
C C pk 1.12
O v erall C apability
Pp 1.08
PPL 1.07
PPU 1.10
P pk 1.07
C pm *
24 26 28 30 32 34 36
O bserv ed P erformance E xp. Within P erformance E xp. O v erall P erformance
P P M U S L 0.00 P P M > U S L 328.28 PPM > USL 508.66
P P M Total 0.00 P P M Total 769.73 P P M Total 1179.53
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Combining Lean and Six Sigma
Lean: reduces waste; improves flow
• Streamlines your operation to a new level
Six Sigma: reduces process variation
• Optimizes your current operation
Lean alone: cuts process extra fat
Six Sigma: improves “as is” system
Their Combination: New and Improved!
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Implementing/Staffing Lean-Six Sigma
Champion: Executive sponsoring Lean
Process Owner: has a vested interest
Black Belt: technically trained in job
Master Black Belt: BB plus experience
Green/Yellow/White Belts: lower levels
• Intermediate, introductory, awareness
• Green Belts can lead small projects.
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Examples of Lean-Six Sigma
Lean:
• Streamlining and organizing
• Eliminating superfluous steps
• Shortening the processing time
Six Sigma:
• Identifying areas of variability
• Reducing overall variability
• Improving Process Capability
Combined: streamline and optimize!
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Bibliography
What is Lean-Six Sigma?
• ASQ; George, Rowlands & Kasle (2004)
Quality Toolkit
• RIAC; A. Coppola (2002)
Total Quality Management TQM Toolkit
• RIAC; A. Coppola (1993)
A Guide for Implementing TQM
• RIAC; Crosier (1990)
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