This slide contains History of Lean Six Sigma with introduction of Six Sigma Tools in a brief.

1. Introduction to Lean Six Sigma
Sir Bill Smith
“ The Father of six sigma”
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2. How To Get Started
“We all tend to concentrate on taking
corrective actions that we know how to
take, not necessarily concentrating on
the problems we should correct and
the actions needed to correct (them).”
- Eliyahu Goldratt
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3. Agenda
 History of Lean Six Sigma (LSS)
 Lean Vs. Six Sigma
 Evolution of Quality
 Expanding Application of LSS & Examples of Companies using
LSS
 Levels of Six Sigma
 LSS Methodology
 DMAIC Process
 Key Concepts of Lean Six Sigma
 Types of Activities
 COPQ
 Success Factors
 Change Management
 Effective Lean Six Sigma Applications in Manufacturing
 Case Study 1 - Samsung
 Case Study 2 – LGE3

4. The History of Lean Six Sigma
A New Approach to Quality
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5. History of Lean Six Sigma
 What is in a name?
 Lean -- Focuses on removing waste (muda) from
processes
 Six Sigma – Focuses on understanding and
reducing variation in processes
 Lean Six Sigma (LSS) – Combines both
approaches
 What is the Concept behind LSS?
 As wasteful activities are removed overall process
variation is reduced
 Lean Six Sigma is one of many methodologies
developed through the Quality Revolution
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6. Lean practitioners believe that waste comes from unnecessary
steps in the production process that do not add value to the
finished product, while Six Sigma proponents assert that waste
results from variation within the process.
Lean focuses on efficiency whereas six sigma emphasizes on
Effectiveness of the process.
Lean vs Six Sigma : Efficiency vs Effectiveness
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7. Lean vs Six Sigma : Efficiency vs Effectiveness
Efficiency : Doing Things Right
Effectiveness : Doing Right Things
Now combining efficiency and effectiveness Lean Sigma was
borne. Where lean has more methodological approach.
When We apply DMAIC or DMADV approach to Lean it’s called
Lean Sigma.7

8. History—Evolution of Quality
 Craft Production
 Each item is unique
 Individual parts made to fit
 Quality through craftsmanship
 Mass Production
 High volume
 Interchangeable parts
 Quality through inspection
 Better Production
 Understanding of process variation
 Quality through process
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9. Evolution of Quality--Timeline
Interchangeable
Parts
Statistical
Process
Control
Reconstructi
on of Japan
Toyota
Production
System
Six Sigma
Eli
Whitney
Walter
Shewhart
Deming &
Juran
Eiji
Toyoda
Motorola
1798 1920s 1950 1960 1980
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10. Expanding Application of LSS
 Initially applied in production environments
 Manufacturing
 Supply Chain
 Maintenance Repair and Overhaul (MRO)
 Rapidly grew into transactional applications
 Financial Institutions
 Insurers
 Continued to expand to services
 Hospitals and Health Care
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11. Examples of Companies who have used LSS:
Manufacturing/Production:
 Allied Signal/Honeywell
 General Electric
 Motorola
 Delta Air Lines
 U.S. Military
 Samsung
 LGE
 Honeywell
 Sony
Transactional Industries
 Bank of America
 American Express
Service Applications
 T.S.A (Airport Security)
There are 1000s of organizations. These are just a few well know
entities.
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12. Mumbai Dabbawala
That's too with limited resources12

13. A Couple of Questions
1. What does “Six Sigma” mean?
a) A process that has a six sigma level of quality
experiences only three defects per one million
opportunities.
2. Is it Important to have a six sigma level of quality?
a) It depends on the customers perception of quality. If you
are landing airplanes, it is critical to obtain at least a six
sigma level of quality. If you are manufacturing coffee
stirrers, lower levels of quality may be completely
acceptable. Sigma Level DPMO
6 Sigma 3.4
5 Sigma 233
4 Sigma 6210
3 Sigma 66,810
2 Sigma 308,770
1 Sigma 697,672
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14. Levels of Six Sigma
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15. How Good is Good
Enough?
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Sigma Level Improvements
3 Sigma
93.3193% Accurate
• 133,600 lost letters per hour
• 33,400 incorrect surgical operations per
week
• 13 short or long landings at most major
airports each day
• 1,336,000 wrong prescriptions each year
4 Sigma
99.379% Accurate
• 12,420 lost letters per hour
• 3,100 incorrect surgical operations per
week
• 1 short or long landing at most major
airports each day
• 124,200 wrong prescriptions each year
5 Sigma
99.9767% Accurate
• 466 lost letters per hour
• 117 incorrect surgical operations per week
• 17 short or long landings every year at
most major airports
• 4,660 wrong prescriptions each year
6 Sigma
99.99966% Accurate
• 6.8 lost letters per hour
• 1.7 incorrect surgical operations per week
• 1 short or long landing every 5 years at
most major airports
• 68 wrong prescriptions each year
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16. Lean Six Sigma Methodology
What is Lean Six Sigma?
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17. LSS Methodology
 DMAIC Process
 DMADV Product (To be Covered in Black Belt)
 Key Concepts
 Understanding Variation
 Voice of the Customer
 Voice of the Process
 LSS Organizational Roles
 Champion
 Master Black Belt
 Black Belt
 Green Belt
 Yellow Belt
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18. DMAIC Process
Define
• What is the problem?
• What is the goal?
Measure
• What is the current performance?
• What is the defect rate?
Analyze
• What are the sources of process variation?
• What are the root causes of defects?
Improve
• How do we change the process?
• How do we verify our changes will improve the
process?
Contro
l
• Are the improvements to the process consistent over
time?
• How do we maintain the improvement into the future?
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19. Key Concepts of LSS
 Understanding of Variation
 Two types of variation
 Controlled variation (Common
Causes)
 Uncontrolled variation
(Assignable/Special Causes)
 Improvement strategy based on
type of variation
 Controlled variation = Change the
process
 Uncontrolled variation = Deal with the
special events
 Voice of the Customer (VOC)
 How does the customer describe
quality
 What is the customers tolerance
for defects
 VOC is often expressed as
specification limits
 Goals should align with the voice
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20. Key Concepts of LSS
 Voice of the Process (VOP)
 What is the current process capability
 How much variation is in the process
 How many defects does it produce
 What is the process average
 What process inputs are important to final quality
Y=ƒ(x)
Conceptual Summary of Lean Six Sigma
The Output (Y) is a function (ƒ) of the inputs
(x)
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21. 21

22. Types of Activities
 Value-Added
 Brings product closer to it’s final form
 Changes the form, fit or function
 An activity the customer is willing to pay for
 Non-Value-Added
 Does not contribute to bringing the product to it’s final
form
 Doesn’t improve the form, fit, or function of the product
or service on the first pass through the process.
 An activity the customer is not willing to pay for
 Waste
Separate non value added from value
added22

23. 8 Types of Waste
UNDER-UTILIZED
SKILLS
Steps are wasteful, people are valuable
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24. Traditional Cost of Poor Quality
(4-5% of
Sales)
When quality costs are initially determined, the
categories included are the visible ones as
depicted in the iceberg below.
Waste
Testing Costs
Rework
Customer Returns
Inspection Costs
Rejects
Recalls
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25. Cost of Poor Quality
As an organization gains a broader definition of poor
quality,
the hidden portion of the iceberg becomes apparent.
Late Paperwork High CostsPricing or
Billing Errors
Excessive Field
Services Expenses
Incorrectly Completed
Sales OrderLack of Follow-up
on Current ProgramsExcessive
Employee Turnover Planning Delays Excess Inventory
Excessive
System CostsOverdue Receivables
Complaint
Handling
Unused Capacity
Time with
Dissatisfied Customer
Excessive Overtime
Waste
Testing Costs
Rework
Customer Returns
Inspection Costs
Rejects
Recalls
Development Cost of Failed Product
Hidden COPQ: The
costs incurred to
deal with these
chronic problems
Premium Freight Costs
Customer Allowances
COPQ ranges
from 15-25%
of Sales
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26. ROLE OF SIX SIGMA
 OBJECTIVES OF 6σ :
 Improve customer satisfaction
 Improve quality of product and service
 Reduce process cycle time
 Overall cost saving
 Development of Staff Skill
 Eliminating Waste or Defects
 WHERE 6σ IS USED
 Manufacturing and service industries
 Sales and marketing
 Accounting and financing
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27.  Deming believed that 85% of all defects are caused
by process failures, not people failures. For that
reason, he believed that it was unwise to badger
workers over poor quality. Instead, he favored
collecting data from the process to understand
which of the inputs to that process were critical to
quality.
 Final quality is achieved through controlling the
variation in process inputs. Final inspection of the
finished product does not prevent quality defects,
it just prevents a portion of defected products from
reaching the customer.
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28. LSS Organizational Roles
Champions
Master Black
Belts
Black Belts
Green Belts
Yellow Belts
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29. Lean Six Sigma Success Factors
What are the building blocks for successful LSS
programs?
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30. Considerations for LSS Success
 Organizational Factors
 Commitment of Senior Management
 Clear organizational vision and goals
 Effective LSS training strategy
 LSS Team Factors
 Flexibility
 Practicality
 Focus on Customers (Internal and external)
 Strengths of LSS Methodology
 Data Based
 Scalable
 Structured30

31. Managing Change
 Force Field analysis
 Stakeholder analysis
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32. 32

33. 33

34. Stakeholder Analysis
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35. Here are some factors that make can created
obstacles to continuous improvement.
This list was compiled by Dr. Kaoru Ishikawa. Dr. Ishikawa
traveled to many different companies, across diverse
cultural backgrounds and products. He found these 10
obstacles to improvement were consistently exhibited in all
companies to some extent and that success in
improvement was directly proportional to how well the
organizations dealt with these behaviors.
1. Passivity among top executives and managers; their
avoidance of responsibility.
2. People who feel that everything is fine and that there
are no problems at all. These people are satisfied with the
status quo and do not understand the significant issues.
3. People who think that their own company is by far the
best.
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36. 4. People who think that the easiest and best ways for
doing things are those which are familiar to them. They rely
only on their own shallow experience.
5. People who think only of themselves or their own
division.
6. People who have no regard for other people’s opinions.
7. People who scramble for distinction, always thinking
about themselves.
8. Despair, jealousy and envy.
9. People who are oblivious to what is happening beyond
their immediate surroundings. People who do not know
anything about other divisions, other industries, or the
outside world.
10. People who continue to live in the feudalistic past.
They include “people who are engaged merely in36

37. Considerations for LSS Success
 LSS Challenges
 It is not a quick win approach to continuous
improvement
 It requires an investment
 It requires a degree of organizational humility
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38. Effective LSS Application
In
Manufacturing
Case Studies: 1 - Samsung
2 - LGE
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39. STRATEGY FOR TOTAL CHANGEWHY?
Direction
of
problem-
solving
Problems
Scientific &
statistical
approachesare
necessary
Elimination of
waste elements
Continuous
learning
1.Big quality
variation
2. Occurrence of
same defects
1. High quality cost
2. Not enough
provision of unified
information
1. High quality cost
2.Not enough
provision of
unified
information
PRODUCT PROCESS PEOPLE
The necessity of Six Sigma in Samsung

40. The problems were in the large quality variations in many
products, repeated occurrences of the same defects, high
quality costs(in particular, high failure costs), insufficient
unified information for quality and
productivity, manufacturing-oriented small group
activities, and
infrequent use of advanced scientific methods.
The company concluded that the directions for solving
these problems lay in scientific and statistical approaches for
product quality, elimination of waste elements for process
innovation, and continuous learning system for people. These
directions in turn demanded a firm strategy for a complete
overhauling a new paradigm fit to Six Sigma..
Samsung Made a contract with SBTI (Six Sigma Break-
through Inc.) for Six Sigma consultation in 1999. It was a one-
year, $3.4 million contract in which SBTI was supposed to
help the company in every aspect of Six Sigma.
Case Study 1

41. In early 1990s, for business reasons the company concentrated on
cooperation of capital and labor, since there were numerous labor
strikes in the late 1980s. After they overcame the labor problems, the
price reduction movement became the major business issue for
competitiveness in the international market.
LGE-DA adopted the Six Sigma concept
from 1996.
From 2000 Six Sigma and e-business strategies
became the major innovation activities for this
company. As far as quality management is
concerned, the AQL was approximately at the
3σ level until 1991. Owing to the 100PPM
movement since 1992, the company became
successful in enhancing its quality level to 4σ.
In 1996 it adopted Six Sigma, challenging itself
to achieving the goal of 6σ quality level in a 41
Case Study 2

42. GE Six Sigma Economics
$0
$500
$1,000
$1,500
$2,000
$2,500
1996 1998 2000 2002
6 Sigma Projest Success
Cost
Benefit
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43. Appendix
Supplemental Material
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44. How Does Six Sigma Solve
Problems?
Practical Problem
(Define/Measure)
Statistical Problem
(Analyze)
Practical Solution
(Control)
Statistical Solution
(Improve)
Y=f(x)
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45. Improvement Process Road Map
Analyze ControlImprove
Define
Activity
• Main Focus –Y
• Identify Problem
• Complete Charter
• Develop SIPOC Map
• Finalize Project
Focus
Tools
• Charter Form
• Multi-Generational
Plan
• Stakeholder Analysis
• Communication Plan
• SIPOC Map
• Voice of Customer
(VOC)
•Defect
definition
•Goal definition
Analyze
Activity
• Main Focus – X
• Propose Critical X’s
• Prioritize Critical X’s
• Conduct Root
Cause
Analysis on Critical
X’s
• Validate Critical X’s
• Prioritize Root
Causes
Tools
• Pareto Charts
• Fishbone Diagrams
• Brainstorming
•5 Why’s
• Non Value-Added
Analysis
• Scatter Diagram
• FMEA,PFMEA,DFM
EA
• 2 Proportion
• Chi-square
• 2 Sample t
• ANOVA
Improve
Activity
• Main Focus – X
• Develop Potential
Solutions
• Develop Evaluation
Criteria & Select Best
Solutions
• Work with EBPM&C to
create Develop ‘To-Be’
Process Map(s)
• Develop High-Level
Implementation Plan
• Develop Pilot Plan &
Pilot Solution
Tools
• Brainstorming
• Creative Thinking
• Pugh Matrix
• NGT
• Delphi
• Multivoting
• FMEA
• 6 Thinking Hat
• Solution Selection Matrix
• ‘To-Be’ Process Maps
Control
Activity
• Control X & Monitor Y
• Develop SOP’s, Training
Plan & Process Control
System
• Implement Process
Changes and Controls
• Monitor & Stabilize
Process
• Transition Project to
Process Owner
Tools
• Control Charts
(Np,P,C,U,I-
mr,XbarR,XbarS)
• Pokayoke
• Standard Operating
Procedures (SOP’s)
• Communication Plan
• Implementation Plan
•Training Plan
• Process Control Plans
MeasureDefine
Measure
Activity
• Main Focus – Y
• Develop Operational
Definitions
• Develop Data Collection
Plan
• Collect Baseline Data
• Determine Process
Performance/Capability
• Validate Business
Opportunity
• Review EBPM&C process
maps to create ‘As-Is’
Process Map
• Main Focus - X
Tools
• Operational Definitions
• Data Collection Plan
• Attribute Agreement
Analysis
• Z,Cp,Cpk,DPU,DPMO,Yiel
d
• Graphical Analysis
•Pareto Chart
•Histogram
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46. Thank You
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