Variance Reduction International, Inc. Lean Six Sigma - Download Now PowerPoint by kmw98023

VIEWS: 4 PAGES: 18

									Variance Reduction International, Inc.
          Lean Six Sigma
      VarianceReduction.com
           (909) 484-2950
       Lean Six Sigma Principles

 Specify value in the eyes of the customer

 Identify value stream; eliminate waste and
   variation

 Make value flow at pull of the customer

 Involve, Align & Empower Employees

 Continuously improve knowledge in pursuit
 of perfection
Lean Sigma Process Improvement Cycle

   VOICE OF       STRATEGIC
  CUSTOMER          PLAN
                                                     Better
 Gap Identified
                                        BUSINESS
                   BUSINESS               UNIT       Faster
      UCL         OBJECTIVES           SCORECARD
            Avg

      LCL                                          Financials
                  BUSINESS
                  MEASURES

                                             VALUE STREAM




                                                                SCORECARD
                                            PROCESS FLOW




                                                                 PROCESS
  Tools &
Methodology
                               UCL

                                              PROCESS
                                     Avg
                                              MEASURES
                               LCL
                                             X's     Y's
                     Deployment IPO
    Executive Ownership

   Champion Involvement                        Projects Completed (%)
                                PROCESS
Expert/ Specialist Selection                   Cycle Time (months)
        Project Selection      Lean Sigma
                               Deployment       ROI ($MM/year)
 Training / Mentoring

         Accountability                     Customer Satisfaction (1-5)

     Motivation / Reward                       Recognition (copied)
        Leadership Team
             Supplier
                                              Better
             Material Type
                                                 S     y      Yield
             Amount of A

             Temperature

             Design Type          Six Sigma

             SOPs
                                                           In-
             CODN (Finance)                                Process
                                                       Storag
  Results    Communication
                                              Cost     e
Driven IPO
             Team Dynamics
 Diagram
             Turnover Rate

             Cell Layout Design

             Piece Flow

             Manpower               Lean

             Setup SOPs
                                              Time
             Maintenance SOPs

             Cell Cleanliness
What is Lean and Six Sigma?
•   Lean, pioneered by Toyota,         •   Six Sigma, developed by
    focuses on the efficient               Motorola, made famous by GE,
    operation of the entire value          it can be defined as a:
    chain.                                   – Measure of process
•    Focus areas:                               capability
     – Remove non-value added                – Set of tools
       steps to:                             – Disciplined methodology
         • Reduce cycle time                 – Vision for quality
         • Improve quality                   – Philosophy
     – Align production with                 – Strategy
       demand.
     – Reduce inventory.
     – Improve process safety and
       efficiency.


    Lean Sigma is a combination of two powerful and proven process
        improvement methods Lean and Six Sigma, that builds on
     existing organization capability in quality, statistics, and project
                                execution.
            Lean Sigma: A Set of Tools
                                                                                                          Measurement System Analysis
                                                                                                                     Glass Inspection Test
                                                                                               Operator 1                 Operator 2                  Operator 3
                                                                                 Item        Test 1       Test 2       Test 1       Test 2                  Test 2
                                                                                                                                                   Test 1
                                                   Use control charts to             1

                                                   understand & identify             2
                                                                                     3
                                                   common & special                  4
   Map the process to                              causes                            5
   determine where                                                                   6
                                                                                     7
   defects are being                                                                            Verify assessment/
                                                                                     8
   created                                                                           9          measurement systems
                                                                                     1
                                                                                     0



           RISK PRIORITY NUMBER (RPN) =
    SEVERITY X 0CCURRENCEX ESCAPED DETECTION
        Score                                                          Run       A       B       AB          y         y        y           ...       y     s
Category           5         4        3        2        1                                                        1         2        3
                                                                           1     -       -        +
 Severity       Severe      High   Moderate   Minor   Negligible
 (SEV)                                                                     2     -       +            -

 Occurrence     Very High   High   Moderate   Low     Very Low             3     +       -            -
 (OCC)
                                                                           4     +       +        +

       Document failure modes                                                  Designed experiments to
                                                                                 ˆ                       
       for products andModerate Low Very Low
 Escaped
 Detection
            Very High High processes                                             y = y +
                                                                               make process robust 2to A • B
                                                                                          2
                                                                                            A A +
                                                                                                   2
                                                                                                     B B +    AB

 (DET) to identify defects' root cause
                                                                               variation
                                                                                 ˆ                                                
                                                                                 s = s +
                                                                                     ¯              A A +              B B +            AB A • B
                                                                                                   2                  2                 2
How is Lean Sigma different and similar to
past quality and statistical efforts?



• Sponsored and directed by     • Uses many tools already
  leadership                      familiar to many people –
• Aligned with business           fishbone, process flow,
  objectives and tactics          SPC, brainstorming
• Focused on delivering         • Aligned with quality efforts
  business results
                                • Uses a logical problem
• Track record for delivering
                                  solving approach that will
  business results
                                  not be new to some
• Disciplined and systematic
  execution process             • Aligned with past quality
• Brings in new tools to most     and reliability efforts –
  companies – DOE,                TQM, Baldrige, Deming
  hypothesis testing, FMEA,
  Kanbans, PokaYoke
Focus Area of Lean and Six Sigma

Lean:
• Reduction of the “7 hidden wastes” or
  non-value added activities to reduce cycle
  time.
Six Sigma:
• Reduction of variability to improve
  quality.
  Both Lean and Six Sigma Tie
  Improvements to $$$
  Overlap of Lean and Six Sigma Tools

Cycle Time Reduction Variance Reduction
          Mapping
                                 IPO
          Logical
                                 CE
 JIT      Physical • PF
                                 CNX
          Time     • Scorecard       Testing
 Quick
                   • SOP             Correlations
 Changeovers
                   • Mistake         Hypothesis
 Single Piece
                     Proofing        DOE
 Flow       5Ss    • $$$
            Visual               FMEA
Lean        Controls             MSA
                                          Six Sigma
  Combining Lean and Six Sigma
  Maximizes the Potential Benefits
                   Six Sigma – Improve Quality
Overall Yield as a Function of Sigma Level & Process Steps
                               Sigma Level
 No. of Parts or
 Process Steps       +/- 3    +/- 4     +/- 5       +/- 6
             1       93.32%   99.379%   99.9767%   99.99966%
             5        70.8%   96.9%     99.884%    99.998%
            10        50.1%   94.0%     99.767%    99.997%
            50        3.2%    73.2%     98.84%     99.983%
           100        0.1%    53.6%     97.70%     99.966%
           500        0.0%     4.4%      89.0%      99.8%
         1,000                 0.2%      79.2%      99.7%
         5,000                 0.0%      31.2%      98.3%
        10,000                           9.7%       96.7%
        50,000                           0.0%       84.4%
       100,000                                      71.2%
       500,000                                      18.3%
     1,000,000                                       3.3%
                                  Sigma Capability
         The number of Sigmas between the center of a process and the nearest
                                   specification limit
                                                               3  Process Centered
                                3  Process                    • We make more than
                     Lower                         Upper         customer needs because
                  Specification                 Specification    some of what we make
                      Limit                         Limit        is waste
                                                               • Process is WIDER than
                                                                 the specifications
         Determined by                                                     Determined by
         the customer                                                      the customer

                                           WASTE
          -6   -5   -4   -3   -2   -1      0    +1 +2 +3 +4 +5 +6

                                        6  Process
3  Process has 66,807                                                                6  Process Centered
dpm vs 3.4 from a 6                                                                  • We make as much as
      process                                                                           the customer needs
                                                                                        and have very little
                                                                                         waste
                                                                                      • Process FITS within
                                                                                        the specifications
                            -6 -5 -4 -3 -2 -1 0 +1+2+3+4+5+6
      The First Step is Process Knowledge



                Long Term Success
            Return on Investment

         Process Improvement
The 1st Step is Process Knowledge
         80 Percent of the Gain with
        20 Percent of the Complexity



  Most of the 80%
improvement is
 possible with  Improvement
   the basic
  quality and
statistical tools.
                                  20%
                              Tool Complexity
     Sustained Improvements without
             Capital Dollars

•Sustainable Results
•Process improvements from Lean Sigma Projects
are sustained.
•Typically, results are audited at 4 and 12 months
after implementing changes.

•Not Capital Driven
•Lean Sigma projects are NOT Capital driven.
•Most improvements are made by changes in the
SOP.
           Lean Six Sigma Roadmap
               DMAIC Strategy

• Define
   – Identify and Prioritize Opportunities
   – Select Your Project
   – Define the Goals and Objectives
   – Form Cross functional Team
   – Understand Customer Requirements
• Measure
   – Define and Analyze the Current Process
   – Assess the Capability of the Measurement
     Process
   – Assess the Current Capability of the Process
   – Variance Reduction
                 DMAIC Cont.
• Analyze
   – Identify the Key Input Variables
   – Discover the Relationship between the Inputs and
     Outputs
   – Identify the Root Causes of the Problems
• Improve
   – Identify and Test the Proposed Solutions
   – Re-assess Capability
   – Implement Solution
• Control
   – Document Results and Return on Investment
   – Take Actions to Hold the Gains
   – Celebrate and Communicate
           Variance Reduction International, Inc.
                  President, Sally Ulman




Mary Ann “Sally” Ulman teaches and consults on the subject of applications of statistical methods. She is an experienced facilitator in the
areas of team building, problem solving, metric development, and implementation of process improvement strategies. Ms. Ulman left
Chevron, USA after sixteen years where she worked as a Quality Facilitator, Corrosion Engineer, and Industrial Water Treatment
Technologist throughout Central California and Sumatra, Indonesia. She has taught and consulted for Chevron, Caltex Pacific Indonesia,
GlaxoWellcome in Pakistan, GlaxoSmithKline in Bangkok, Kuala Lumpur, London, Jakarta and India, Texaco, Baker Petrolite, Aera
Energy, National Association of Corrosion Engineers, Farwest Corrosion, Mazda USA, Teac America, American Business Communications,
California Training Cooperative, Auto Meter, PLCs Plus, United Way Agencies and various public seminars. Her extensive consulting
background involves industrial and service applications of DOE, SPC, LeanSigma, reliability, management and team building techniques.
She received her B.A. in Physical Education from California State University, Northridge. She attained Six Sigma Black Belt certification
from University of Texas and Master Black Belt certification from Air Academy Associates. In addition she also holds a California Junior
College Teaching Credential, Corrosion Technologist and Coating Inspection Certification from the National Association of Corrosion
Engineers. She is now President of Variance Reduction International Inc. and works as an instructor and consultant for Air Academy
Associates and is the Six Sigma instructor at San Diego State University.

								
To top