Department of Defense
Lean Six Sigma
Executive level overview
There must be a better way!
• Agenda:
• Lean Six Sigma Overview
– The foundation of LSS
– Lean / Six Sigma / LSS
– DMAIC
Terminal Learning Objective
• Task: Apply DMAIC to a Simple Work Process
• Condition: You are training to become an ACE
with access to ICAM course handouts, readings,
and spreadsheet tools and awareness of
Operational Environment (OE)/Contemporary
Operational Environment (COE) variables and
actors
• Standard: with at least 80% accuracy:
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Describe the foundation of Lean and Six Sigma
Define the underlying theory of Six Sigma
Describe the principles of Lean Six Sigma
Explain the concepts of DMAIC
Lean Six Sigma overview
• Why Lean Six Sigma
• Principles and Tools
• Deputy Chief of Staff Army G-1
www.armyg1.army.mil/leansixsigma/whatislss.asp
• Performance Excellence… A Lean Six Sigma WorldClass Methodology
• Where to Start…Voice of the Customer
Foundation to Lean 6 Sigma
• Definitions of Insanity:
– Doing the same thing over and over and expecting
a different outcome!
• AND
– Using the same logic to get out of the trouble that
got you there in the first place!
Albert Einstein
Foundation to Lean 6 Sigma
• "To measure is to know.“
• "If you can not measure it, you can not improve it.“
• "…I often say that when you can measure what you
are speaking about, and express it in numbers, you
know something about it; but when you cannot
measure it, when you cannot express it in numbers,
your knowledge is of a meager and unsatisfactory
kind ”
Lord Kelvin
Right Training. Right Attitude
• Lean Six Sigma is not rocket science…you can do this
• Lean Six Sigma is not “easy”…it requires dedication
and effort
• Lean Six Sigma is not the next program…it is a way of
thinking…an approach to every task performed, that
asks the question…“does this add value?”
What is Lean?
• Identifying improvement opportunities in processes
• Utilizes scientific problem solving methods
• Focus on reducing non-value added steps in a
process
• Analyzing and improving process flows
• Reducing complexity
• Solving many smaller problems
Value-Added Activities
The Lean Ladder
Eight Types of Waste
• Wastes-Those Elements of a process that Do Not
Increase the Value of a Product or Service as perceived
by the Customer, but Increases Cost and Cycle times.
– IDENTIFY AND ELIMINATE THESE WASTES:
• Types of Waste:
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T Transportation
I Inventory (Excess)
M Motion
W Waiting
O Over-producing
O Over-processing
D Defects
U Under utilization of employees
Learning Check
• Why should Lean be considered?
• What are Value added Activities?
• What are some of the types of waste?
What Is Sigma σ?
What is Six Sigma?
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A Philosophy for Quality Improvement
Uses a structured approach to problem solving
Utilizes Scientific Problem Solving Methods
A Statistical Measure of Variability
When Achieved, Reduces Defects in an Operation or
Process to 3.4 Defects per Million Opportunities
DPMO
• A Way to Achieve Significant Savings
• Breakthrough Improvements in Performance
• 6 σ is about making money
Why Use Sigma As a Metric?
Six Sigma Defined
Six Sigma:
• Is a systematic methodology utilizing effective data analysis
tools and techniques to improve performance by eliminating /
preventing defects and inefficiencies’ in processes, to meet
and exceed customer needs.
• Derives from a 99.99966% error free quality level OR less than
3.4 errors per million opportunities
Learning Check
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What is Sigma σ?
What is Six Sigma?
Why use Sigma as a metric?
Define DPMO
Integrating Lean and Six Sigma
• Natural evolution
• Applies the right tools to a project
• Leverages tools and methodologies to
maximize process improvements
• Reducing waste and variability go hand in
hand in process improvement
What Lean Six Sigma is not
• A complicated way to manage your organization
• Anew way for the “Quality Department” to audit
reports and performance
• Something that requires you to discard what you
learned with TQM, CQI, etc.
• A new way to spend money without clear benefit to
the organization
• Something that requires a complicated computer
system
• A way to eliminate jobs
History of Lean, Six Sigma
• Frederick W. Taylor: 1880s-early 1900s, systematic study of workers’ use
of time and motion
• Henry Ford: continuous flow production, waste elimination
• TWI: (Training Within Industry), 1940-1945
• W.E. Deming and Joseph Juran: took quality control to Japan in 1953
• Kiichiro Toyoda and Taiichi Ohno: low inventories, flexibility
• U.S. supermarkets: pull systems
• Shigeo Shingo: mistake proofing, reduced set up times
• Toyota Production System NIKE
• MIT and James Womack: bring Lean back to U.S.
• NBC White Paper: If Japan can, Why can’t we?, 1980s
• Eli Goldratt: published book The Goal”, early 1980’s
• Motorola: global deployment launched Six Sigma 1987, opportunity for
error
Why Use Lean Six Sigma
• LSS is the CPI industry standard
– Increases throughput
– Shortens cycle times
– Reduces defects
– Lowers cost
Versatility
When to Use the LSS Process
• When to Use:
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Driven by the Business Strategy
Problems that “have been around as long as we can remember.”
Solution is not known or is not obvious
You are willing to commit people to identify and resolve the issue
You want a more definitive solution than traditional methods can
provide
– You want to encourage the upward flow of ideas and build team spirit
– You want group ownership of a course of action
• When NOT to Use:
– You don’t have a specific challenge or clear issue to solve
– You already have a solution and course of action
– You don’t have a consistent process to improve
Lean Six Sigma Principles
• Identify value in the eyes of the Customer
– Learn to see your processes from the perspective of
your customer
• Identify the value stream and eliminate waste/variation
• Make value flow at the pull of the customer
• Involve, align, and empower employees
– Develop solutions using the people who are currently
working in the process
• Continuously improve knowledge in pursuit of perfection
Continuous Improvement
• A framework for constantly improving organizational
performance
• Provides steady, incremental improvement in
everything we do to meet/exceed changing
expectations:
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Better quality
Faster turnaround
Lower costs
More responsive service
• A relentless, never-ending process
• Requires that we all change the way we think talk work
think, talk, work, and act
A Program of Process Improvement
Continuous Process Improvement (CPI) is a deliberate
change in Process Performance
The Importance of Reducing
Variation
• To increase a process Sigma Level, you have to
decrease the variation
• Less variation provides:
– Greater predictability in the process
– Less waste and rework, which lowers cost
– Products and services that perform better and last
longer
– Happier customers
Foundation to Six Sigma
Y = f(X)
Y is:
Xs are:
Output
Inputs
Dependent
Independent
Observed
Controlled
Effect
Causes
Result
Reason
Identify and control the X’s
Process output
is
A function of
Key process and input factors that cause
variation in the output
• Y = f(X1,X2,…)
• In Improvement
– Identify the key X’s to reduce variation in the Y
• In Design
– Carefully set specifications on the X’s so that we get the
desired Y
• In Process Management
– Monitor and control the X’s to assure we will get the
desired Y
Why Aim as High as 6 Sigma?
The Look of 6σ Performance
3σ - 99% not
defective
6σ – 99.99966% not
defective
Lost articles of mail
per hour
20,000
7
Incorrect surgeries
per wk
5,000
1.7
Wrong prescriptions
each yr
200,000
68
Hours without
electricity
7 hr
per month
1 hr
per 34 years
Culture of Performance
Improvement
Learning Check
• Why combine Lean manufacturing with Six
Sigma?
• Why aim for 6σ?
• How do you improve a sigma level?
Overview of DMAIC
The DMAIC Process
• Provides a structured approach for addressing
problems
• Provides a common language
• Minimizes the risk of jumping to the wrong
conclusion
• Provides a checklist to prevent skipping steps
• Each step has goals, tools and outputs
• Tollgate reviews occur at each phase
Define
• Goal
– Define project purpose and scope and obtain background
information on the process and its customers
• Outputs
– Cleat statement of the intended problem and how to
measure it
– High-level process map
– Key quality characteristics
• Approach
– Develop project charter
– Map the process
– Understand the voice of the customer
Measure
• Goal
– Focus the improvement effort by gathering
information about the current situation
• Outputs
– Baseline performance data
– Common understanding of how the process currently
operates
– More focused problem statement
• Approach
– Collect data and check special causes
– Create detailed process maps
Analyze
• Goal
– Identify root cause and confirm with data
• Outputs
– A tested and confirmed theory
– Understanding of the effects of the inputs on the
output
• Approach
– Explore and organize potential causes
– Use statistical methods to quantify a
cause-and-effect relationship
Improve
• Goal
– Develop, try out and implement solutions
• Outputs
– Planned and tested actions that eliminate or reduce
the impact of root causes
– Comparison of “before” and “after” data to show
effects
• Approach
– Create possible solutions
– Select solutions and develop plans
– Implement plans and measure results
Control
• Goal
– Maintain the gains by standardizing work methods or
processes
• Outputs
– Documentation of new methods
– Train others in the new process
– System for monitoring the new process
• Approach
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Develop and document standard practices
Train teams and monitor performance
Create process for updating procedures
Summarize and communicate learning
Learning Check
• What does DMAIC stand for?
• Describe the DMAIC process?
Lean Six Sigma Simulation
• Score for your team
• First round will use standard MRP batching
process as defined by the instructor
• Second round implement the changes
suggested by the class using DMAIC
• Each round will last 15 minutes
• The team with the most point WINS!!
Questions?
The Army OBT has more information on LSS and
training opportunities.
www.armyg1.army.mil/leansixsigma/whatislss.asp
Do you have any questions?
Thank you for joining our discussion today.