lean six

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Lean Six Sigma Overview

R. Scott BonneyEnterprise MBB, US Army Headquarters

Chair, Federal Improvement Team

13 Sep 2012

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Lesson Outline

Part I: LSS Fundamentals

Lean Basics Six Sigma Basics

Theory of Constraints Basics

Part II: LSS Implementation Strategy and SIPOOC

Roles and Responsibilities

Training and Certification


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Part I:

Lean Six Sigma Fundamentals


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Lean Principles

Specify Value from theCustomers Perspective

Map & Analyze the ValueStreams (core processes)

Make the Value Streams

Flow Enable the Customer to

Pull Value from the ValueStreams

Seek Perfection

Lean Thinking, Womack and Jones, 2nd Edition, 2003


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Seven Wastes(plus 1)

Overproduction

Waiting

Transportation

Over-processing

InventoryMotion

Defects

Waste = TIM WOOD (U)


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Value: The Flip-Side of Waste

Any activity must meet three criteria to be

considered Value-Added

The Customer wants it (enough to pay for it)

It changes the form, fit, or function of the product,

process, or service

Its done right the first time

AND

AND


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The Value of Time

TimeBroken

Component

RepairedComponent

WaitTransport

Transport motorto repair shop

Inspect

Set-up

= Value Added Time = Non-Value-Added Time (WASTE)

Machine

MachineDisassembleMotor

Start FinishRe-Install

Customer requestsPolicy review

Value-Added time is only a very small percentage of

the total time

Within the 7 wastes, time is a significant factor

Remove motor

from ship

Transport request toCoC for approval Initial Document

review

Gather TeamGather key documents

Re-writeDocuments

Wait

CoCReviews

Re-re-writeDocuments

Navigate CoCFor final signature

Final signature /Issue policy

Shipyard / Job Shop Transactional Shop


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Time

The Value of Time

Lean Focus

Make all of the Value Stream visible

Reduce or eliminate Non-Value-Added portions of the process

Result: Large time savings

Traditional Focus

Improve Value-Added

work steps

Better tools, machines,

instructions

Result: Small time

savings

Amount of

Time EliminatedLARGE amount

of time saved

Small

Note: The focus is not on the value-

added steps or the peopleperforming them.

Instead, the focus is to removebarriers and better support the

people doing the work!


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Sort

Simplify

Shine

Standardize

Sustain

Workplace Organization (5S)


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Workplace Organization (5S)

Imported from

Japan (1990s)Sort

Simplify

Shine

Standardize

Sustain

Exported from

USA (1950s)Seiri

Seiton

Seiso

Seiketsu

Shitsuke

Origins: Today &

Tomorrow (1927)Clean

Arrange

Neatness

Discipline

Ongoing Improvement

(CAN DO!)

This stuff aint new! (thats how we know it works!)


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Quiz: Lean Basics

In four words or less, Lean Is . . .

A War on WASTE!

Efficiency-Focused


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What is Six Sigma?

According to the founders ofMotorolas Six Sigma program, it is:

First, a statistical measurement (6Second, a business strategy

Third, a philosophy for breakthrough

thinking (revolutionary vs. evolutionary)


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DMAIC Problem-Solving Roadmap

CONTROL

IMPROVE

DEFINE

MEASURE

Document, Communicate and

Identify Replication Opportunities

VERIFY RESULTS

Long Term

Implementation

ANALYZE

DESCRIBE CONDITION

IDENTIFY PROBLEMS

LIST POTENTIAL CAUSES

PROPOSE SOLUTIONS

PREPARE ACTION PLANS,

IMPLEMENT IMPROVEMENTS

Y=f(x)Output is a function of the inputs

Effect is a function of the causes


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What is Six Sigma

performance?

Six Sigma is an optimized performance levelapproaching zero defects in any process -

whether it produces a product, a service, or a

transaction

It means 1st-time perfect quality

This requires having a common focus on (and

definition for) excellence throughout the

organization


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- 6s -5s -4s -3 s -2s -1s 0 +1s +2s +3s +4s +5s +6s

6s to LSL 6s to USL

1.5sLSL

3.4 PPM

Defects3.4 PPMDefects

USL

Statistical Definition of Six Sigma

Stat ist ical Def ini t io n

Evolution to:

A Management-dr iven, scient i f ic methodolog y for prod uct and

process impro vement wh ich creates breakthroug hs in f inancial

per formance and Customer sat isfact ion(The thin king-order matters!)


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Why Six Sigma?

20,000 lost postal mail itemsper hour

15 minutes of unsafe drinking

water per day

2 long/short landings per dayat a major airport

5,000 incorrect surgicaloperations per week

7 hours of lost electricity permonth

20,000 incorrect prescriptionsper month

7 lost postal mail items perhour

1 unsafe minute every seven

months

1 long/short landing everyfive years

1.7 incorrect operations perweek

1 hour without electricityevery 34 years

68 wrong prescriptions peryear

Hey, 99% is good enough right?

99% 99.99966% (6 Sigma)


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Examples of Six Sigma Tools

F-Test p-value: 0.000t-Test p-value: 0.000

Measure the As-is Measure the New Process

Statistically Validate the Impact


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Theory of Constraints

Theory of Constraint (TOC) is..

Minimizing or Managing

bottlenecks


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Constraints and Barriers

A constraint is anything in an organizationthat limits it from moving forward or

achieving its goal

The slowest vehicle in a convoy sets the pace

When the constraint (critical path) isnot progressing, the process is not

progressing!


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WHERE ARE YOUR

RESOURCES FOCUSED?

IF 100 PEOPLE WORKED

TO IMPROVE 100 DIFFERENT

PROCESSES,

THE 1 PERSON WORKING ON THE

CONSTRAINT PROCESS WOULD SAVE

THE ORGANIZATION THOUSANDS MORE

THAN ALL THE OTHER 99 PEOPLE

COMBINED!

Why Care About Constraints?


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To change Effective Utilization for the better

High effective utilization = Process constraint

We can reduce the time required to do the work

Make the process efficient

We can increase the time available to do the work

Find more capacity

=EFFECTIVEUTILIZATION

TIME REQUIRED

FOR ACTIVITY R

ATIME AVAILABLE

FOR ACTIVITY

=

What is our target value?

Rule of thumb: 80-90%WHY?


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TEST

DISASSEMBLY

ORDER

REBUILD

TEST

TUNE

RETEST

SHIP

0

25

50

75

100

PROCESS

EFFECTIVEU

TILIZATION

Goal

125

Constraint Management Chart


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Steps to Constraint Management(From The Goal by Eli Goldratt)

Define the GOAL. Then

1. Identify - Whats the constraint?

2. Exploit - Utilize all resources to balance workloads

3. Subordinate - Focus non-constraints towards

supporting the constraint

4. Elevate - Apply Lean

5. Repeat Step 1 - The constraint has probably

moved

Theres something you should know about Herbie


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Quiz: Theory of Constraints Basics

In four words or less, ToC Is . . .

A War onCONSTRAINTS!

Cost-Driver-Focused


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Value StreamSpeed of Lean

Customer Value ccuracy of Six Sigma

-6 -3 0 +3 +6

LSL USL

Focus of TOC


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Part II:

Lean Six Sigma Implementation


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Putting it All Together

Strategy and SIPOOC

Roles and Responsibilities

Training and Certification Resources


P tti it All T th

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Putting it All Together:Strategy and SIPOOC (Con t.) f rom Process to Projects

Receive

Request

for Info

ReviewRequest

AssignRequest

EstablishTeam

Review

Data

Sources

WriteReport

Review/

Approve

Report

DeliverReport

c/t = 3-5 days c/t = 15-20 days c/t = 10-15 days c/t = 10-30 days Cycle Time

Throughput

Defects

Total Costs

Out of ScopeOut of Scope In Scope

ReviewRequest

AssignRequest

EstablishTeam

Review

Data

Sources

WriteReport

Review/

Approve

Report

Map the process

Determine project scope

Collect process data (time, quality, and/or cost) Assess value for each process step (Value-add, Non-Value-Add, NVA-Required)

Identify system constraints

Plan CPI / LSS projects at the constraints

Break constraints

Type of problem(s) (average or variation? Common cause or special cause? VA

or NVA?)

Scope projects Assign team leads/sponsors

Train (as required)

Execute projects

Monitor project execution

Validate metrics impact

c/t = N/A c/t = 3-5 days c/t = 1 day

Performance

Metrics

Strategic Planning Session


Lean Six Sigma Projects in Theater

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As of 1 May 10 1620 (Z) 3232

Lean Six Sigma Projects in Theater

Status Projects

Complete 11

Active 18

Proposed 4

Green Belt 6

Total 33

Refurbishment , Retrograde, Redistribution2

Project Location StatusCompletion

date (est.)

Material Recovery & Accountability Process Kuwait Completed 1-Jan-10

Paperwork Generation Associated w/Equipment Issue/Turn-in Kuwait Completed 1-Jan-10

Air Lift Process Delays at KCIA Kuwait Completed 4-Jan-10

SPOD Processing - AK302 Customs Form Procedure Kuwait Completed 9-Jan-10

2/401st AFSB Transportation to SPOD and APOD Kuwait Completed 10-Jan-10

Sea Lift to OEF Kuwait Completed 17-Jan-10

Disposition non-standard equipment (DRMO Project) Kuwait/Iraq Completed 6-Feb-10TPER Kuwait Completed 1-Nov-09

TMR Processing Kuwait Completed 9-Nov-09

Theater Retrograde Wash Rack Kuwait Completed 23-Jan-10

Reducing No-Shows at APOD Kuwait Completed 1-Feb-10

Core Value Stream Example


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Putting it All Together:Roles and Respons ibi l i t ies

Executive Champion = SES / GO-level support. Senior top-cover.

Sponsor= Lowest-ranking person with decision-authority over the entire processbeing improved. Rank is a function of project scope. Some BB projects and nearly

all MBB projects may require multiple Sponsors due to projects crossing silos.

Ranking person usually defaults to role of Project Sponsor, although not always.

Deployment Di rector = Chief of the LSS Office. Responsible for effective use of

GB and BB resources. Should hold appropriate rank to stand toe-to-toe with seniorleaders to ensure they select appropriate projects and support belts and teams

appropriately

Master Black Belt = Full-time performance improvement specialist. Years of

experience and training in enterprise-level project execution.

Black Belt = Full or part-time process improvement professional. Usually 2 year

full-time position executing 3-6 month CPI projects.

Green Belt = Full or part-time process improvement person. Primary focus is

lean / waste-elimination projects within the scope of their own office.

Leadership is KEY to success!


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Putting it All Together:Training and Cert i f icat ion

GB Certification:

80 hours training to Body of Knowledge Successful completion of comprehensive exam

Successful completion of a LSS GB project

BB Certification:

160 hours training to the BB Body of Knowledge Successful completion of comprehensive exam

Successful completion of a LSS projects

MBB Certification:

BB Certification complete, plus 120 hours additional CPI training Successful completion of comprehensive exam

Successful involvement in four LSS projects


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Discussion

Tools Strategic Deployment

Project Selection

Y=f(x)

Bodies of Knowledge

Career Paths Teams

Sponsoring projects

Training

Points of contact

The 8th Waste

Strategic Deployment Roles and Responsibilities

Certification

Tools

How do YOU get involved? Strategic Planning Session /

Project Identification &

Selection Workshop (PISW)

Teams Green Belt Training

Sponsorship


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