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Lean Six Sigma Implementation




  Copyright © 2005-2008 EMS Consulting Group Inc. All Rights Reserved
Agenda

• Combining Lean and Six Sigma
• The Laws of Lean Six Sigma
• Deploying Lean Six Sigma




     Copyright © 2005-2008 EMS Consulting Group Inc. All Rights Reserved
Combining Lean and Six Sigma
•   The Lean Six
    Sigma Approach
    combines
    –   The DMAIC
        Methodology
        (from Six Sigma)
    –   Quality Tools
        (used in both Six
        Sigma and TPS)
    –   Lean Tools (from
        TPS)

           Copyright © 2005-2008 EMS Consulting Group Inc. All Rights Reserved
Lean and Six Sigma Tools
System                   Lean / Toyota                            Six Sigma
                          Production
                            System
Philosophy          •Elimination of                      •Reduction of
                    waste                                defects/variation

Improvement •PDCA                                        •DMAIC
Process/Cycle

Tools               VSM, 5S,                             Process Mapping,
                    Standardized Work,                   SIPOC, Hypothesis
                    Leveling, SMED,                      Testing, DOE,
                    TPM, One Piece                       Control Charts, etc.
                    Flow, Kanban, etc.

         Copyright © 2005-2008 EMS Consulting Group Inc. All Rights Reserved
The Laws of Lean Six Sigma
                       Lean Six Sigma, George, 2002




•   Lean means speed; it applies to all processes.
•   Slow processes are expensive processes.
•   The Lean metric is process cycle efficiency
    (Value-added Time/Total Lead Time)
•   Batch sizes must be calculated using flow
    variables
•   95% of the lead times in most processes is
    wait time.
•   To improve speed, you need to identify and
    eliminate the biggest time traps using the
    Laws of Six Sigma
         Copyright © 2005-2008 EMS Consulting Group Inc. All Rights Reserved
The Laws of Lean Six Sigma
                           Lean Six Sigma, George, 2002
•    Laws of Six Sigma
    – The Law of the Market:
       Customer CTQ (critical-to-
       quality) issues must be
       addressed first.
    – The Law of Flexibility: Process
       Velocity is directly proportional
       to flexibility.
    – The Law of Focus: 80% of the
       delay in any process is caused
       by 20% of the activities
    – The Law of Velocity: The
       average velocity of flow through
       any process is inversely
       proportional to both the number
       of “things” in the process and
       the average variation in supply
       and demand.
            Copyright © 2005-2008 EMS Consulting Group Inc. All Rights Reserved
Execution of Lean Six Sigma
1. Initiation – Top Management
   becomes engaged in supporting the
   initiative.
2. Resource and Project Selection
  •   Linked to Customer CTQ
  •   Focus on creating value (high NPV
      projects)
3. Implementation / Sustainability /
   Evolution

       Copyright © 2005-2008 EMS Consulting Group Inc. All Rights Reserved
Deployment Plan
•   Process
•   Organization
•   Measures
•   Rewards
•   Tools


      Copyright © 2005-2008 EMS Consulting Group Inc. All Rights Reserved
Deployment Plan
• Process

Org                                                               Results
                    VSM                  Projects
Goals                                                               ($)
 Select            Identify                                         Quality
Products /        Opportun-                  DMAIC                Productivity
 Value               ities                   Kaizen                Inventory
Streams           (Projects)                                      Lead-Time
                                                                     Sales
             Copyright © 2005-2008 EMS Consulting Group Inc. All Rights Reserved
Deployment Plan
 • Organization
                    Executive
                   Leadership
      Resources               Accountability

               Project
              Champions

             Resources             Accountability

 Master                                      Process
                     Black Belt
Black Belt                                   Owners
                      Team
                     Members
              Copyright © 2005-2008 EMS Consulting Group Inc. All Rights Reserved
Deployment Plan: Organization



                                MBB
                          Black Belts
                         Green Belts
                         Yellow Belts



  Copyright © 2005-2008 EMS Consulting Group Inc. All Rights Reserved
Deployment Plan
•       Measures
    –        Leading Indicators
         •      # of champions
                identified
         •      # of BB/GB identified
                and trained
         •      Size and value of
                project queue
    –        Financial
             Improvements linked
             to each initiative
         •      Quality
         •      Productivity
         •      Inventory
         •      Lead-Time
         •      Sales



                Copyright © 2005-2008 EMS Consulting Group Inc. All Rights Reserved
Deployment Plan
•   Rewards
    – Bonuses tied to
      project performance
      (savings generated)
      for team
      leaders/participants.
    – Recognition –
      visible support from
      executives


         Copyright © 2005-2008 EMS Consulting Group Inc. All Rights Reserved

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Lean Six Sigma Implementation

  • 1. Lean Six Sigma Implementation Copyright © 2005-2008 EMS Consulting Group Inc. All Rights Reserved
  • 2. Agenda • Combining Lean and Six Sigma • The Laws of Lean Six Sigma • Deploying Lean Six Sigma Copyright © 2005-2008 EMS Consulting Group Inc. All Rights Reserved
  • 3. Combining Lean and Six Sigma • The Lean Six Sigma Approach combines – The DMAIC Methodology (from Six Sigma) – Quality Tools (used in both Six Sigma and TPS) – Lean Tools (from TPS) Copyright © 2005-2008 EMS Consulting Group Inc. All Rights Reserved
  • 4. Lean and Six Sigma Tools System Lean / Toyota Six Sigma Production System Philosophy •Elimination of •Reduction of waste defects/variation Improvement •PDCA •DMAIC Process/Cycle Tools VSM, 5S, Process Mapping, Standardized Work, SIPOC, Hypothesis Leveling, SMED, Testing, DOE, TPM, One Piece Control Charts, etc. Flow, Kanban, etc. Copyright © 2005-2008 EMS Consulting Group Inc. All Rights Reserved
  • 5. The Laws of Lean Six Sigma Lean Six Sigma, George, 2002 • Lean means speed; it applies to all processes. • Slow processes are expensive processes. • The Lean metric is process cycle efficiency (Value-added Time/Total Lead Time) • Batch sizes must be calculated using flow variables • 95% of the lead times in most processes is wait time. • To improve speed, you need to identify and eliminate the biggest time traps using the Laws of Six Sigma Copyright © 2005-2008 EMS Consulting Group Inc. All Rights Reserved
  • 6. The Laws of Lean Six Sigma Lean Six Sigma, George, 2002 • Laws of Six Sigma – The Law of the Market: Customer CTQ (critical-to- quality) issues must be addressed first. – The Law of Flexibility: Process Velocity is directly proportional to flexibility. – The Law of Focus: 80% of the delay in any process is caused by 20% of the activities – The Law of Velocity: The average velocity of flow through any process is inversely proportional to both the number of “things” in the process and the average variation in supply and demand. Copyright © 2005-2008 EMS Consulting Group Inc. All Rights Reserved
  • 7. Execution of Lean Six Sigma 1. Initiation – Top Management becomes engaged in supporting the initiative. 2. Resource and Project Selection • Linked to Customer CTQ • Focus on creating value (high NPV projects) 3. Implementation / Sustainability / Evolution Copyright © 2005-2008 EMS Consulting Group Inc. All Rights Reserved
  • 8. Deployment Plan • Process • Organization • Measures • Rewards • Tools Copyright © 2005-2008 EMS Consulting Group Inc. All Rights Reserved
  • 9. Deployment Plan • Process Org Results VSM Projects Goals ($) Select Identify Quality Products / Opportun- DMAIC Productivity Value ities Kaizen Inventory Streams (Projects) Lead-Time Sales Copyright © 2005-2008 EMS Consulting Group Inc. All Rights Reserved
  • 10. Deployment Plan • Organization Executive Leadership Resources Accountability Project Champions Resources Accountability Master Process Black Belt Black Belt Owners Team Members Copyright © 2005-2008 EMS Consulting Group Inc. All Rights Reserved
  • 11. Deployment Plan: Organization MBB Black Belts Green Belts Yellow Belts Copyright © 2005-2008 EMS Consulting Group Inc. All Rights Reserved
  • 12. Deployment Plan • Measures – Leading Indicators • # of champions identified • # of BB/GB identified and trained • Size and value of project queue – Financial Improvements linked to each initiative • Quality • Productivity • Inventory • Lead-Time • Sales Copyright © 2005-2008 EMS Consulting Group Inc. All Rights Reserved
  • 13. Deployment Plan • Rewards – Bonuses tied to project performance (savings generated) for team leaders/participants. – Recognition – visible support from executives Copyright © 2005-2008 EMS Consulting Group Inc. All Rights Reserved