Running head: LEAN/SIX SIGMA 1 Lean Six Sigma Andrew Bessette Business Quality Management/Southwestern College Gary Brewer September 28, 2014 LEAN SIX/SIGMA 2 Table of Contents Title Page .............................................................................................................................1 Table of Contents .................................................................................................................2 Section 1: Introduction to Lean Six Sigma and Green/Black Belt ......................................3 Section 2: Lean Six Sigma Explained ..................................................................................4 Section 3: Lean ....................................................................................................................6 Section 4: Six Sigma ............................................................................................................8 Section 5: Belt Construct and Requirements .....................................................................10 Section 6: Conclusion ........................................................................................................12 Section 7: References…..………………………………………………………………...14 LEAN SIX/SIGMA 3 Lean/Six Sigma Continuous improvement processes by utilizing the Lean/Six Sigma Green Belt and Black Belt Applications is nothing new. It has been widely used and followed since its beginnings after World War II. However, even with as widely used as it is, a large amount of the population displays confusion when told about Lean/Six Sigma. In fact, when I talk about these subjects with my leadership, I get an awkward and confused look. This makes me question why the movement towards continuous process improvement is so important if my leadership is not familiar with its details and applications of Lean/Six Sigma and like programs. I question why if they are in charge of the day-to-day operations of the worlds most advanced and powerful Air Force, how can they still not see the waste in a simple process? I decided that I had to find a way to explain the processes, and the benefits of having an expert in their organization in a clear and concise manner. Once I could do this, I could explain the benefits of using these processes and get buy-in to the movement towards continuous improvement. After all, continuous improvement is not only the responsibility of the leadership in an organization; it is the responsibility of everyone. My research was supposed to include an actual certification and the running of an improvement event. However, due to scheduling constraints and the availability of the course, I was unable to attend before this writing this paper. Currently, I scheduling has permitted me to attend the course in the near future. In fact I will be a certified “Green Belt” when I complete the course and the other associated prerequisites. We will get into what it takes to get that certification later. The research that I have completed building up to the course will help me gain my certification into the Lean Six Sigma “belt” system, and be able to be the expert that my organization needs. For the purposes of this paper, I will be explaining Lean/Six Sigma, Breaking the two down into their individual parts, the belt construct and requirements, and the LEAN SIX/SIGMA 4 benefits of using the process in a typical organizational structure. Finally, during the course of the paper I will give some real life examples of when an event needed completion, and how it competed. Once I detail all of these items, I (as well as the reader) will be able to explain why continuous improvement processes like Lean Six Sigma are so important to any organizations. What is the Lean/Six Sigma buzzword that we have heard about but may know nothing of its application? Lean/Six Sigma Explained Lean/Six Sigma is an improvement methodology that maximizes value by improving cost, speed, quality, and customer satisfaction. According to Laureani and Antony of the International Journal of Productivity and Performance Management, Lean/Six Sigma has been widely adopted by the manufacturing and service industries. Some of these very successful integrations have been in companies like GE and Motorola. Because of its success in these large companies, it has become popular and this popularity has perpetuated its use. (Laureani and Antony, 2012). Lean/Six Sigma began as part of the continuous process improvement revolution. Lean/Six Sigma is not a single process improvement entity, but two separate methodologies that lead to the same end. This end is the continuous improvement of the organization. The two separate entities are Lean and Six Sigma. In fact, all of my sources call this Lean Six Sigma or LSS. I chose to use the “/” symbol in between them to show the separation between the two parts of the improvement process. According to Goetsch and Davis (2013), this continuous improvement revolution began with W. Edwards Deming’s Lean approach shortly after World War II. The US emerged as the victor after the war, and had the world’s best and intact manufacturing abilities. Rivals like Japan and Germany had most of their production facilities LEAN SIX/SIGMA 5 carpet-bombed and leveled during the Great War leaving their infrastructure destroyed. Deming was already in the process of his ideas on continuous improvement. He attempted to sell the idea to the US manufacturers, however, due to the current (US) success after the war, and the fact that there was no competition left in the global market, the US rejected Deming’s’ total quality approach. (Goetsch and Davis, 2013). However, when Deming approached the Toyota Company in Japan with their ideas, they saw an opportunity to get back into the global market. You see, Japan had to start from scratch. The war destroyed their entire manufacturing infrastructure, along with the processes. The only way the country would survive and thrive was to get their products improved to the point of competing on a global scale. This is the exact reason that Toyota adopted Deming’s Lean construct, and became a very strong competitor in the world manufacturing market. (Goetsch and Davis, 2013) Lean is the reduction of waste by doing the same or improved work while using fewer resources. According to Goetsch and Davis, these resources at things like human, financial, technological and physical in nature. This was the start of the total quality revolution. Six Sigma is a similar methodology as Lean, however, according to Oliver Wyman; Six Sigma is a project management framework as well as a set of statistical tools that is very successful when properly applied to applications in order to solve business problems. (Wyman, 2012). Six Sigma began with the Motorola Corporation when the company was discovering that the market was becoming a much more difficult place to compete. They had to step up their quality and competitiveness, and the best way was to adopt the continuous improvement framework of Six Sigma. Their approach to improvement stemmed off from a statistical principal that I will cover later. The question to answer is why is it Lean/Six Sigma, and not two separate processes? The answer is simple. Lean and Six Sigma work very well as a continuous improvement culture change with a framework that is easily adopted when used as a LEAN SIX/SIGMA 6 single construct. When separate, an organization may have the most lean and easily made products, but they will not improve past that point when all of the waste is out of the process. On the other hand, if the company only uses the Six Sigma portion, they may be constantly improving on a rigid scale, but there will be a considerable amount of waste still present in their processes. This is why the best way for an organization to proceed is to do a Lean/Six Sigma combination. For example, Joseph Basala tells us that there are a high percentage of people with lean skills and training wanting to learn about the Six Sigma tools. Additionally, there are those that rely heavily on the methods that started with Six Sigma now wanting to know more about the lean concept. Basala also tells us that Lean/Six Sigma is not a perfect 50-50 split between lean and Six Sigma tools. The use will always depend on the situation rather than the availability or ease of tool use. For example, if you have a very complex project that requires variationreduction tools you may favor traditional Six Sigma tools. However, if a project is not as complex and you are concerned with flow of operations and waste reduction then you would use more of the traditional lean methodologies (Joseph Basala, 2014). I have explained much of the history of Lean/Six Sigma and have explained that Lean Six Sigma is not one entity; I will explain what they both actually consist of. I will start with Lean. Lean Lean is a reduction of waste in any organization. This “waste” can be in the form of many things. You can find waste present in people, processes, financial, technological, and resources to name a few. According to Goetsch and Davis, much of the lean processes focus on reducing and eventually eliminating the waste. These come in the form of overproduction waste, which is making more of an item than is necessary for the production at that moment. An example of this is making one thousand nut and washer combinations for only 500 bolts. Inventory waste, is LEAN SIX/SIGMA 7 carrying too much inventory than is needed at any time. An example of inventory waste is present in the food industry. Why make more food than the customers will eat in a day? Motion waste is unnecessary movement in a process. What this means is instead of turning around 3 or 4 times to complete an assembly operation, move the operation so the turning is reduced, reducing the amount of injury’s from a repetitive motion. Transportation waste is the wasted movement of parts or people in order to complete the processing of the product. Over processing waste is when the amount of product available far exceeds the customer draw. Defect waste is the amount of unacceptable defects in a product. Waiting waste, (always present in the military), is the excess of idle time of a person or machine. Finally, underutilization waste is not using all of the company’s assets to the correct level. (Goetsch and Davis, 2013) There are many Lean tools available to combat these wastes. A few of the more popular and more utilized tools in my organization are as follows: Standardized work, Self-inspection, Total Productive Maintenance, Value Stream Mapping (VSM), Change Management, and Teamwork. We use the Standardized work tool when we are completing a weapons maintenance operation. The weapon is the same at any location, so the process to maintain it should also be the same. We ensure the standardized work, by keeping the tools and handling equipment the same for the system, and make detailed technical orders that our maintainers are required to follow. This has standardized the work to the point where an inspection team can watch any team complete the maintenance operation, and the only difference during the task will be the people doing the operation. We use self-inspection throughout the Air Force. Our newest self-inspection methodology is the Commanders Inspection Program, or CCIP. The CCIP has a database of checklists for each unit to complete to ensure their everyday processes are being completed to a satisfactory level. We use Total Productive Maintenance every day in the maintenance career fields. We are all required to ensure LEAN SIX/SIGMA 8 all equipment is available and serviceable prior to starting any maintenance task. It is very frustrating to get half way through a procedure and discover you can go no further due to an equipment shortage or shortfall. Value Stream Mapping is not as widely used in my organization unless a new section or area of expertise is about to be added. Normally we use this process when we are still in the planning stages of a new project. I find that value stream mapping is a great tool to use when trying to improve on an organization. Change Management is a tool that we use every day. The Air Force is in a perpetual state of change. With increased terror threats and the face of traditional war changing, we have to adapt to the situations. Change management helps us all adapt with very little conflict. The last of the tools that we most utilize is teamwork. This tool is in my opinion the most important of the Lean tools in an organization. There is not a single person who can do everything perfect all the time. However, with a strong team around you, the goods and services that your organization provides will be perfect. We use teams on most every task in the maintenance realm. Without teams, mistakes would go unchecked and could cause massive mission failures. So far, I have explained the Lean process, its tools, and how we use them. Now let us look into Six Sigma, and how it is different from the Lean construct. Six Sigma In modern organizations (and the first one that used Six Sigma), the term Six Sigma refers to the calculation and estimation of the quality that helps the organization to reach perfection. According to Goetsch and Davis, Six Sigma gets its name from a statistically determined value. The value Six Sigma means that if all deviations remain constant, a Six Sigma process will yield 99.9999998 percent perfection. This means that out of one million products, a miniscule 0.002 will have defects. (Goetsch and Davis, 2013) This approach shows that a Six LEAN SIX/SIGMA 9 Sigma level of production is nearly perfect, and should be the goal of most organizations who not only want to have superior performance, but a continued improvement of that performance. The approach of ‘Six Sigma’ is not as much a process as it is a data-driven and disciplined methodology designed to eliminate all the deficiencies within an organization. The removal of these deficiencies increases the performance of the organizations that practice the Six Sigma operations. Thus, driving the organization towards the quality level desired in the organizational goal, and closer to that Six Sigma level of production. Goetsch and Davis tell us that the idea of Six Sigma levels of production began in the Motorola Company. Their goal was to have a tenfold improvement in each sector of the company in just over ten years. After their ten-year effort, the company did not achieve the goals, but still saved billions and increased profits by 20%. (Goetsch and Davis, 2013) This is an amazing amount of improvement, and word of their success spread to many other organizations, including my organization, the US Air Force. Six Sigma is more of an approach than it is a list of tools and processes to complete. The basics of Six Sigma is to eliminate waste, and continuously improve your organization towards the final goal of perfection. In my career field specifically, (when politics of the US Government does not intervene) we have taken drastic steps to reach a Six Sigma level. For example, we have taken a “whole person” approach to training and mentoring our people in order to produce strong, smart, and enthusiastic leadership. For example, my career field and many others will place an individual into a set of “buckets” to increase the experience potential in places that they are weak. Each bucket represents a different experience set, based on location, weapon system type, and leadership level. One bucket will be in an Intercontinental Ballistic Missile leadership position, while another will deal with Strategic and Tactical Bombs. There are 9 buckets that each individual is placed in thorough their career. This starts very early in a supervisors career, LEAN SIX/SIGMA 10 and continues until either they make Chief Master Sergeant, or get out of the military. What this has done is groomed our future leadership before they are expected to lead. They are able to get the experience working with a system at a young age before they are required to run the shop that maintains that system. This approach has decreased the amount of critical errors on the system substantially. Another Six Sigma approach that we have taken in our career field is how we conduct inspections. In fact, in the interest of continuous improvement, we have taken the Air Force Inspection System model and the CCIP and are currently retooling it for the nuclear career field. Not only will this ensure an easy transition from one program to another, (by using a familiar system) but also it will provide continuity to those who have to complete the inspections in an unfamiliar career field. As you can see, Six Sigma is a great methodology to improve an organization. Now that I have covered both Lean and Six Sigma, let us look at putting them back together in the Green and Black belt certification programs and how they benefit organizations. Belt Construct and Requirements Belt certification is becoming a very common occurrence in the Lean/Six Sigma world. In fact, the dilution of the certification is because of hundreds of companies claiming to have the best and most accredited certifications available. Due to this dilution, the “belt” certification standards are difficult to narrow down, or even comprehend. However, Alessandro Laureani, and Antony Juju has narrowed down the basic requirements. Laureani and Juju explain that the belts available are; white, yellow, green, black, and master black, with a varying level of master black belts. They go on to explain each belt in detail. A white belt is simply a basic introduction to the system. White belts require about 40 hours of training and can only focus on a specific work area instead of large cross-functional projects. They can complete about 12 projects a year with a potential income of 25K per project. Not a bad income for only 40 hours of training! After white LEAN SIX/SIGMA 11 belts, there is the yellow belt. This belt according to Laureani and Juju is similar to the white belt, except they can focus on more Six Sigma type of projects while they work their normal duty responsibilities. The next belt that Laureani and Juju explained was the Green Belt. This belt is what I am working towards a certification in. As soon as the next opportunity for the class arises, I will be taking the course. A green belt receives about 80 hours of training, and like the yellow belts, take roles in Six Sigma projects as well as their normal duty responsibilities. The big difference is that they use many of the same tools that a black belted individual would use, but focus on a single project in one location. Additionally, they work under a black belt at all times. A benefit of becoming a green belt is that holding the certification alone can net you an income of over 100 thousand dollars a year, plus your take on the project. The last belt that Laureani and Juju explained was the black belt. These individuals have at least 160 hours of training, and they have mastered many sophisticated tools and statistical techniques. They run long-term projects and very large projects that take three or more months to complete. The next level of the black belt as described by Laureani and Juju is the Master Black Belt. These individuals have mastered the tools of the black belt, and have been successfully completed many sophisticated projects utilizing very complex tools and statistical techniques. They have earned the master level due to their success as a black belt and a savings of over 180 thousand dollars average per project. These are the basic requirements for certification in the belt system. (Laureani and Juju, 2012) During my research, I found that many of the companies required completion of extra activities before awarding a certification in the belt system. For example, according to Cudney and Fargher, DuPont has specific criteria for the specific target savings per project on each of the belt levels. Additionally, companies like Motorola and Microsoft require an examination prior to awarding a certification. (Cudney and Fargher, 2005) As you can see, the certification LEAN SIX/SIGMA 12 requirements for the belt system can be a bit confusing and intense. I find it very ironic that the standards for certifications are so subjective on who gives it to you. You would think that the process for continuous improvement and removing waste would have a single set of standards for the certification. I think the next improvement event in the Lean/Six Sigma world should focus on their certification standards and authority. Unfortunately, while there is a process, there will be room for improvement. I hope that in the future, all governing bodies of the Lean/Six Sigma combined belt system will adopt a standard certification requirement. This will end the waste of time spent researching your belt qualifications and the subsequent re-certifications upon transfer to another organization. Conclusion Lean/Six Sigma is a wonderful tool set designed to eliminate waste and improve your organizational effectiveness to a near perfect level. It began after Deming proposed improvements to the US manufacturers was dismissed due to the lack of competition in the world market. This denial spurred Deming’s move to Japan where his ideas were put to good use. Six Sigma began in the Motorola Company where by a statistical calculation, near perfection was the goal of the organization, in addition to a continuous improvement movement. By combining to form Lean/Six Sigma, a company can continually strive to be the best. Organizations can not only eliminate waste, and improve processes, bit they can continue to improve past their leaderships expectations. According to Sony and Naik, “The integration of Lean and SS aims to expand the scope of improvement within an organization and therefore the potential of the organization to improve business processes.” (Sony and Naik, 2012) By following the Belt led events in your organization, one will find that a properly certified individual can make a significant difference in the amount of waste that is eliminated. I hope that LEAN SIX/SIGMA 13 when I am a certified Lean/Six Sigma Green Belt, I can help the Air Force as well as any company that I have the opportunity to work with. I am committed to the process of Lean/Six Sigma, and I truly believe that anyone in an organization can be a vehicle to continuous process improvement. I also believe that their efforts will make a significant impact on the success of the organization. LEAN SIX/SIGMA 14 References Goetsch, David L., Stanley Davis, Quality Management for Organizational Excellence: Introduction to Total Quality. Upper Saddle River, NJ: Pearson, 2013. 138. Print. Basala, J. (2014). Lean six sigma revisited. ASQ Six Sigma Forum Magazine, 13(2), 33-34. Retrieved from http://ezproxy.sckans.edu/login?url=http://search.proquest.com/docview/1505315116?accountid =13979 Cudney, E. A., & Fargher, John S W,Jr, PhD. (2005). Lean and six sigma: Integrating lean and six sigma in a systematic approach (presentation supporting paper). IIE Annual Conference.Proceedings, , 1-7. Retrieved from http://ezproxy.sckans.edu/login?url=http://search.proquest.com/docview/192457203?accountid= 13979 Laureani, A., & Antony, J. (2012). Standards for lean six sigma certification. International Journal of Productivity and Performance Management, 61(1), 110-120. doi:http://dx.doi.org/10.1108/17410401211188560 Sony, M., & Naik, S. (2012). Six sigma, organizational learning and innovation. The International Journal of Quality & Reliability Management, 29(8), 915-936. doi:http://dx.doi.org/10.1108/02656711211258535