Lean Sigma Catherine Jones

What is Lean (Six) Sigma (LSS) A philosophy of doing business / a business

management strategy Lean Six Sigma combines the two most important improvement trends of our time:

Reducing the variation of the process and making work better (using Six Sigma methodology)

Making work faster and more efficient (using Lean Manufacturing principles).

Six Sigma

A statistical approach developed in Motorola

Increase quality through reduction of variation in manufacturing processes

Application of ‘tools’ PBC, 5Ys, Pareto analysis, DMAIC, PDCA etc

Lean W. Edwards Deming (October 14, 1900 – December

20, 1993) was an American statistician, professor, author, lecturer, and consultant.

JapanFord Motor Company

Deming advocated that all managers need to have what he called a System of Profound Knowledge, consisting of four parts:

Appreciation of a system: understanding the overall processes involving suppliers, producers, and customers (or recipients) of goods and services

Knowledge of variation: the range and causes of variation in quality, and use of statistical sampling in measurements;

Theory of knowledge: the concepts explaining knowledge and the limits of what can be known

Knowledge of psychology: concepts of human

nature.

Go to Gemba!Japanese word In business the value adding activities occur in ‘Gemba’

Gemba is the source of all information!

Benchmarking Deployed flow chartsIdentified common wastesVAFA (Value Added Flow Analysis)

Quality measuresSPC

Deployed Flow ChartCustomer Server Chef

Start Take seat Takes order

Cooked?

Place order

with chef

Pick up order

Cook food

Plate up food

Make and

serve drink

Toast?

Make and

serve toast

Cooked?

Collect and

serve

Enjoy breakfast

Baseline measurements

Product Science (hours)

Cycle time (hours)

Turnaround time (Days)

A 0.5 3.75 16

B 1.25 4.6 17

C 2.0 7 30

D 1.5 7.3 31

Common WastesHandoversQueuingStorage Multiple checksMultiple SAP screens (IT)ReworkingInter site transfersAdministration (MI, time recording etc)

Quality Measures

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Number of Drugs Quality Actions

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SPC

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

Average Daily Imperfections with Control Limits

Average Daily ImperfectionsSample MeanLower Control LimitUpper Control Limit

Developing ‘to be’ scenariosBrainstorming ‘To be’Produced high level DFCPDCA – paper trialsData collection

Voice of the customerWheel sessions QuestionnairesGemba

Data collectionDFC for ‘to be’Test planOperational definitions‘Tag points’AssumptionsRolesTrial lab layoutObservations

Central versus Local analysisPugh Matrix

Key Criteria Rating

As-is Central Local analysis

Calibration standards 4 + sCourier costs 3 _ +Validation 5 + _Equipment 4 s _Sum of positives 2 1

Sum of negatives 1 2Sum of sames s sWeighted sum of positives

9 3

Weighted sum of negatives

3 9

Total sum 6 6

Centralisation v Local Cause and Effect effect – TRTs greater than 24 hours, can not

meet require deadline

Trt exceeds 24 hours

Pareto charts

Time Quality Cost Service Sales Other0

5

10

15

20

25

30

35

40

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

Cause Cumulative

Continuous ImprovementKaizen

Kai = ChangeZen = Good (for the Better)

The Basic Philosophy Is to Involve All Employees in Small, Daily Improvements within their Work Areas.

SummaryMeasurement should be the means

to improve understanding People will do what is counted not

what countsUse customer data to drive changeIf you manage by targets people

cheat!

“Efficiency is doing things right. Effectiveness is doing the right thing.” -Zig Zigglar (Author, salesperson and motivational speaker)

“The point is…you’d better figure out what your Customers

– the Customers you want – value. Because that’s what they’ll buy.

Anything else is a waste of their money, and they’ll figure that out in a hurry.”

– Gordon Bethune (retired US airline executive. He was the CEO of Continental Airlines from 1994 until his retirement at the end of 2004)