Presented By:HAKEEM-UR-REHMANPhD (Candidate) – Management Science & Engineering(Logistics & Operations Management)Antai College of Economics & Management,Shanghai Jiao Tong University, Shanghai, China

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Webinar on

LEAN SIX SIGMA: AN OVERVIEW

http://www.acem.sjtu.edu.cn/en/ http://en.sjtu.edu.cn/

CONTENTS

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Lean Six Sigma – An Overview

oEvolution of Quality Field

oWhat is Lean & Six Sigma?

oLean Manufacturing: Types of Waste

oWhat is Six Sigma? (Y = f(x))

oComparison of Lean & Six Sigma

oLean & Six Sigma Performance Metrics

oLean Six Sigma / Six Sigma Methodologies & Frameworks

oDMAIC Methodology

oLSS & SS Team Structure

oLean Six Sigma Tools

EVOLUTION OF QUALITY FIELD

Product Insp. to Process to System to Culture to Performance Control (Opr Mgt ) Change

TQM+ – Wave II Lean Six

Sigma

Six Sigma

KnowledgeMgt.

IT

TQM – Wave IHRM

GROUPDYNAMICS

Teams

Efficiency

BPR

TPM

JIT/MRP

QAISO9000

OPR MGT.

QCSPC

QualityCircles

Inspection/Testing

Metrology

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WHAT IS LEAN & SIX SIGMA?

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LEAN: “A systematic approach to identify and eliminate waste (and non value-added activities) through continuous improvement by flowing the product at the pull of the customer in pursuit of perfection.”

SIX SIGMA: “A methodology that provides businesses with the tools to improve the capability of their business processes. This increase in performance and decrease in process variation lead to defect reduction and improvement in profits, employee morale and quality of product.“

LEAN MANUFACTURING: ELIMINATING THE WASTE

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TOTAL LEAD TIME THROUGH THE VALUE CHAIN

1. Are they equal or not?2. If not; Which is the most significant source of

waste?

TYPES OF WASTE (MUDA)

Which is the most significant source of waste?

Producing TOO much

ADDITIONALtransportation

cost

Producing TOO much

to sort, handle and store.

Processes busy

producing

the WRONG things

Longer queue

LONGER wait

Overproduction is the disease, Defects are the cause?

TYPES OF WASTE (MUDA)

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WHAT IS SIX SIGMA?

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INPUTS OUTPUTS

“A blending of inputs to achieve the

desired outputs”

PROCESS

People

Material

Equipment

Policies

Procedures

Methods

Environment

Perform a Service

Produce a Product

Complete a Task

Six Sigma is a PHILOSOPHY: This is generally expressed as y = f(x)

YDependent

OutputEffect

SymptomMonitor

X1 . . . XN

IndependentInputCause

ProblemControl

SIX SIGMA?...

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MANUFACTURING INJECTION

MOLDED PARTS PROCESS

Type of Raw MaterialMold

TemperatureHolding Pressure

Holding Time

Gate Size

Screw Speed

Moisture Content

Thickness of Molded Part

% Shrinkage from Mold Size

Number of Defective

Parts

Y=F(x)

ASSEMBLY PROCESS

Method

Tool Type

Team Structure

Cycle Time

# of Defects

Sequencing of Steps

SIX SIGMA?...

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1.5 Sigma Shift

Theory

COMPARISON OF LEAN & SIX SIGMA

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SIX SIGMA LEAN

Objective Deliver value to customer Deliver value to customer

Theory

Reduce variation Remove waste

Focus Problem focused Flow focused

Assumptions

A problem exists Figures and numbers are

valued System output improves

if variation in all processes inputs is reduced

Waste removal will improve business performance

Many small improvements are better than system analysis

LEAN PROCESS PERFORMANCE

METRICS Bottleneck is the process step with the lowest capacity Cycle time is the time interval between the completion of two consecutive units (or

batches) Takt Time: “the frequency at which a product or service must be competed in order to meet

customer needs” = (Available Time) / Demand

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Example: Sasha and Andy have opened a hot dog stand at their local park. They offer a hot dog with choice of fresh fruit and beverage to walk up customers between 10 AM and 2 PM. Customers put on their own condiments. Customers say their hot dogs are good, but the wait is a little long. On average 50 customers per day enters into the system.Suppose:

Calculate the Takt time; Analysis the situation.

Cycle Time (Seconds)

ANDY 224SASHA 159Total Cycle Time (Sec.) 446

Takt time = (Available time / Customer Demand) = (4 hrs X 60 min./hr) / 50 Customers = 4.8 Minutes = 288 Seconds

ANDY SASHA

Series1 224 159

25

75

125

175

225

275

Cycle Vs Takt Time

Cycl

e T

ime (

Seco

nds)

WHAT IS SIGMA LEVEL?A metric that indicate how well a process is performing. A higher sigma level means higher performance . A Statistical measure of the capability of a process.

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DPU (Defects / Unit)

(# of Defects / # of Units)

Say: 10 Defects, 100 PairsDPU = 10/100 = 0.1 (10%)

DPO (Defects / Opportunity)

(# of Defects) / (# of Units X # of Defect Opportunities /

Unit)

10 Defects, 100 Pairs,2 Opportunities / CartonDPO = 10/(100 X 2) = 0.05 or 5% for each type

DPMO(Defects / M. Opportunities)

DPO X 106

DPMO = 0.05 X 106 = 50,000

SIGMAConsult Z–Table or Excel

Sigma Level

Yield =1–DPO =1–0.05 = 95 %

From M.S. Excel:=Normsinv(%Yield)

+1.5

50,000 DPMO = 3.145σ

Exercise: Calculate Sigma Level

1. Calculate the Sigma Level and DPMO of a telecom network had 500 minutes of downtime in 2005.

Product: Network (Connectivity) CTQ: Up time / Down time CTQ Measure: Minutes CTQ Specs: no downtime Defect measure: One minute of Network down Opportunity/Unit: 1 Total Defects in 2005: 500 minutes Total Time (Minutes): 365days X 24hours X 60min. =

525,600

DPU = 500/525,600 = 0.000951 DPO = 500 / (525600 X 1) = 0.000951 DPMO= 0.000951 X 106 = 951 Yield = 1 – DPO = 1 – 0.000951 = 0.999049 SIGMA LEVEL = Normsinv(%Yield)+1.5 = 4.6σ

WHAT IS SIGMA LEVEL?

2. If you have a total of 500 delivery orders and you find out that 41 of those were delivered late, and 17 were incorrect orders.

Lean Six Sigma / Six Sigma METHODOLOGIES

DMAICAn improvement system for existing processes falling below specification and looking for incremental improvement  Define Measure Analyze Improve Control 

DMADV

An improvement system used to develop new processes or products at Six Sigma quality levels  Define

Measure

Analyze

Design

Verify 

FRAMEWORKS

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Six Sigma

Lean Six Sigma DFSS

VARIATIONDefects

Cost of Poor Quality

WASTE / SPEED

Cycle Time, DeliveryCost of

Operation

RELIABILITY & ROBUSTNESSDesign Features

DMAIC DMAIC DMADVSIPOC,

CTQ, SPC, FMEA,

DOE, QFD, CoQ,

ANOVA, Hypothesis

, Regression, MSA (R &

R)

5S, Value Mapping,

Time Study, TPM,

Cellular Prod.,

Takt Time,Poke Yoke

VOC, QFD, FMEA, CTQ, Gage R & R,

DOE, Reliability Analysis,

SPC, Systems Engineering

PROGRAM

FOCUS / THEME

METHODOLOGY

TOOLS

DMAIC METHODOLOGY

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DEFINE: "What is important to the business?" The problem is defined, including who the customers are and what they

want, to determine what needs to improve. Expected benefits for the project sponsor & Time line

MEASURE: "How are we doing with the current process?" The process is measured, data are collected, and compared to the desired

state.

ANALYZE: "What is wrong with the current process?" The data are analyzed in order to determine the cause of the problem.

IMPROVE: "What needs to be done to improve the process?" The team brainstorms to develop solutions to problems; changes are

made to the process, and the results are measured to see if the problems have been eliminated. If not, more changes may be necessary.

CONTROL: "How do we guarantee performance so that the improvements are sustained over time?" If the process is operating at the desired level of performance, it is

monitored to make sure the improvement is sustained and no unexpected and undesirable changes occur.

Team STRUCTURE

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Quality Council / Steering Committee

Champions

Master Black Belt

Black Belt

Black Belt

Green Belt

Green Belt

Green Belt

Green Belt

HOD’S / Owners

SponsorsProcess Owner

CoachTrainers

Team Leaders

Team Members

Project Managers

Lean Six Sigma Tools

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Quality Function Deployment

Kano Model

Process Flow Diagram

SIPOC Diagram

Cause & Effect Diagram

Pareto Chart

Scatter Plot

Graphs

Histograms

Box & Whisker's Plot

Control Charts

Process Capability Analysis

Testing of Hypothesis

Regression & Correlation

Analysis

Measurement System Analysis

Value Stream Mapping

KaiZen

TPM

SMED (Single Minute Exchange Device)

Takt Time

Poka Yoke

Bottleneck Analysis

Design of Experiment

5 S

Kanban

Andon

Theory of Constraint

Failure Mode & Effect Analysis

7 New Management Tools

OEE

QUESTIONS

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