Lean Six Sigma Overview | LASSIB | http://www.lassib.org/
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Lean Six Sigma Overview
Lean Six Sigma Overview | LASSIB | http://www.lassib.org/
Version 1.0
'The savings as a percentage of revenue for a company can vary from 1.2% to 4.5%.’
'GE produces annual benefits of over $2.5 billion across the organization from Six Sigma.’
'Lean Six Sigma techniques implemented throughout the Army continue to prove successful, and leaders anticipate reaching a $2 billion-savings mark this year.’
'During the past 10 years Six Sigma has become one of the most widely practiced process improvement methodologies in both service and manufacturing industries.’
'No matter which level of Six Sigma training the respondents completed, their average salaries are higher than the respondents who didn't complete any Six Sigma training.’
*Source: Refer to Bibliography for details
Industry Snippets*
Lean Six Sigma for Indian Govt.| August 2011 | LASSIB | http://www.lassib.org/
Examples of Implementations of Lean Six Sigma in the Government Sector• City of Fort Wayne, Indiana
– Improved repair of potholes within 24 hours from 77% of 99.6%– Reduce missed garbage collected from an average of 92 per week to 46 per week– Cost saving of $3.5 million
• Central Intelligence Agency (CIA)– CIA used Six Sigma to improve measures (e.g. date mining process) against terrorism (USA)
• Minnesota Pollution Control Agency– Reduced time taken to issue permits from 10% of permits issued within 180 days to, 75% of permits issues in 180 days
• Alexandra Hospital, Singapore– With the hospital’s performance standard set at 60 minutes, Total Turnaround Time (TAT) improved by 22%, with over half of our patients leaving the clinic within 1 hour
– Income Tax Department– Uses six sigma data analytic tools for identifying
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Improving Efficiencies does not equate to job cuts
Lean Six Sigma for Indian Govt.| August 2011 | LASSIB | http://www.lassib.org/
Examples of Areas of Improvements within Governments World over• Number of steps in a process• Number of approvals required• Amount of time required to process a request• Number of errors during work, requiring re-work• Level of user i.e. people satisfaction• Amount of duplication of effort• Number of mail, phone, and fax requests• Number of copies being made• Amount of storage space being used and how much is available
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Source: Lean Six Sigma in the public sector, Xerox
Lean Six Sigma Overview | LASSIB | http://www.lassib.org/
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Recognize
Recognize
Define
Define
Control
Control
Measure
MeasureAnalyze
Analyze
Improve
Improve
A set of proven tools and techniques
used to achieve business growth and goals
A framework that builds
a customer centric approach
with a focus on delivering
business results
A mechanism to develop
leadership talent
within the organization
A set of proven tools and techniques
used to solve business problems
What is Lean Six Sigma?
Lean Six Sigma Overview | LASSIB | http://www.lassib.org/
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Why is it so successful?
Larger % of Employees
in Need of Skills to
Deliver
Customer Value and
Business Value
Lean and Six Sigma (6σ)Lean and Six Sigma (6σ)
A Comprehensive
Solution
% of employees
Skill to deliver business value and customer value
Lean Six Sigma Overview | LASSIB | http://www.lassib.org/
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Lean vs. Six Sigma
LEAN Six Sigma
• Eastern Methodology• Started in Japan• Started at Toyota
• Western Methodology• Started in U. S. A.• Started at Motorola
• Tools and Techniques are • Philosophical• Conceptual
• Tools and Techniques are • Methodology Based• Data Based and Objective
• Helps identify and capture low-hanging fruit
• Helps solve complex problems
• Helps deliver quick results• Improvements take 1 week to 3
weeks
• Helps deliver long-term results• Improvements take 4 weeks to 6
months
• Examples of Techniques• Sort• Standardize• Value Stream Mapping
• Examples of Techniques• 7 QC Tools• Design of Experiments• Hypothesis Testing
Lean Six Sigma Overview | LASSIB | http://www.lassib.org/
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When to use Lean or Six Sigma and When not to use?
1st Preference
2nd Preference
3rd Preference
4th Preference
Lean Six Sigma Overview | LASSIB | http://www.lassib.org/
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When do Individuals and Organizations fail using Lean and Six Sigma?
Lack offocus
Lack offocus
Projects not
business related
Projects not
business related
Lack of sponsorsLack of
sponsors
Under investment
Under investment
Lack of mentorsLack of mentors
No focus on change
management
No focus on change
management
Why they fail?Why they fail?
Lean Six Sigma Overview | LASSIB | http://www.lassib.org/
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Historical Perspective
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Lean Six Sigma Overview | LASSIB | http://www.lassib.org/
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Mean vs. Variation
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Quantitative Perspective
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99.99966% Right (6 Sigma)
No electricity for 1 hour every 34 years
1.7 incorrect operations per week
68 wrong prescriptions per year
99% Right (3.8 Sigma)
No electricity for 7 hours per month
5,000 incorrect operations per week
20,000 wrong prescriptions per year
σDefects per Million
Opportunities
1 697,672.15
2 308,770.21
3 66,810.63
4 6,209.70
5 232.67
6 3.40
Lean Six Sigma Overview | LASSIB | http://www.lassib.org/
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Quantitative Perspective
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Five Sigma 233 PPM
Two Sigma
308,770 PPM
Three Sigma 66,810 PPM
Four Sigma 6,209 PPM
World Class, Six Sigma 3.4 PPM
Airline fatality rate 0.52 PPM
Motorola for some of its processes in1990
Hospital fatality rate due to mistakesRestaurant billsDoctor prescriptionsPayroll processingAirline baggage handling
1:100
1:1,000,000
Sigma ()
Lean Six Sigma Overview | LASSIB | http://www.lassib.org/
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A defect is any value that falls outside Customer Specifications
Statistical Perspective
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Mean = 20
17
20
23
= 0.5 (Upper
Specification)
(6 )
()
(6 )
(Lower Specification)
Lean Six Sigma Overview | LASSIB | http://www.lassib.org/
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Customers Perspective
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Six Sigma Starts and Ends with Customers
CUSTOMERS
What do the customers expect out
of the process?
What is my customers view of the process?
What is my customers
definition of a defect?
How do my customers
measure the process?
Are my customers
referring and buying again?
Is my customer
satisfaction increasing?
Lean Six Sigma Overview | LASSIB | http://www.lassib.org/
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Operational Perspective
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Recognize
Recognize
Define
Define
Control
Control
Measure
MeasureAnalyze
Analyze
Improve
Improve
1.To finalize the prioritized list of initiatives that can be taken up as Six Sigma Projects, to enable delivery of the maximum value to your customers1.To finalize the prioritized list of initiatives that can be taken up as Six Sigma Projects, to enable delivery of the maximum value to your customers
Lean Six Sigma Overview | LASSIB | http://www.lassib.org/
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Lean Six Sigma vs. ISO 9001
ISO 9001
Primary focus for organizations is certification
Primary focus is on process standardization
Is not prescriptive, i.e. does not tell you how to achieve it
Lean Six Sigma
Primary focus for organizations is delivering customer value & results
Process standardization is one part of Lean Six Sigma
Is prescriptive, i.e. teaches you best practice tools to achieve results
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Lean Six Sigma Overview | LASSIB | http://www.lassib.org/
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Lean Six Sigma vs. Total Quality Management (TQM)
Total Quality Management
Consists of tools and techniques to achieve quality e.g. 5S, Kaizen
Lacked focus of delivering organizational and customer value, resulting in fading out of management commitment
Lean Six Sigma
Structures these tools and techniques, and when to use effectively which one
Focuses on delivering organizational and customer value, resulting in sustaining management commitment
Includes all principles of TQM among others
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Lean Six Sigma Overview | LASSIB | http://www.lassib.org/
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Contact
WEBSITE
http://www.lassib.org/
SOCIETY HEADQUARTERS
#5-70, V. V. Nagar, Street No. 8, Habsiguda, Hyderabad, Andhra Pradesh, India - 500007
PHONE
India Landline: +91-40-40045614
India Fax:+91-40-40045615
India Toll-Free: 1-800-425-1388
Lean Six Sigma for Indian Govt.| August 2011 | LASSIB | http://www.lassib.org/
Shilpa Kota, Secretary, Lean and Six Sigma International Board (LASSIB),A non-profit organization build on the principles of Gandhian Engineering
About the Lean and Six Sigma International Board (LASSIB Society)
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Lean Six Sigma for Indian Govt.| August 2011 | LASSIB | http://www.lassib.org/
About LASSIBWhat?
• Lean And Six Sigma International Board• A not-for-profit Society• In area of Lean Six Sigma and Business ExcellenceWhen? • Conceptualized in 2009• Came into existence in 2010• Registered in 2011
Why?• Lean Six Sigma concepts are here to stay• Spread the awareness of Lean and Six Sigma concepts• Share learning’s for the community at large
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w.lassib.o
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hp/about
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