INTRODUCTION OF LEAN SIX SIGMA PROGRAM By: Ahmed Mewafi Agenda • What is lean? • Lean principles • Lean Tools • Lean is for everyone • Introduction of 6 Sigma • What is Sigma? • History of 6 Sigma • Main definitions and methodologies • DMAIC overview • DMADV methodology • Examples of 6 Sigma projects WHAT IS LEAN? Introduction • What is Lean? "Lean" is the set of management practices based on the Toyota Production System (TPS). This methodology is deployed in selected processes to identify and eliminate Non-value added activities and hence increase the operational efficiency. Lean is quick and avoids rigorous data analysis. Introduction "Lean" is not • Crowding people and machines • The same amount of work done by fewer people • Not enough resources • Efficiency no matter what • Not enough supplies • Giving the customer the bare minimum History of Lean The History of Lean 6 sigma LEAN PRINCIPALS? Lean Principles Adapted from Lean Thinking, Womack and Jones 1. Specify Value Three types of work: Business Value Activity that does not create value but is still necessary to the business Pure Waste Any activity that uses resources but creates no value Value-added Activities that transform a product or provide a service in a way that the customer is willing to pay for Follow the “Thing” People Process “Thing” Process Machine Process Specify Value by Identifying Waste Seven Types of Waste: • Defects • Overproduction • Waiting • Non-utilization of talent • Transport • Inventory • Motion • Extra processing Define the Value Stream • A Value Stream is all of the actions, both value-creating and non value- creating, required to bring a product from order to delivery including actions to process information from the customer and actions to transform the product on its way to the customer Information Product Flow Material 3. Create Flow Without Waste What is Continuous Flow? • Continuous flow: results when items are produced and moved from one processing step to the next, one-at-atime, without stoppages, scrap, or backflow ◼ Consistent flow rate ◼ Drumbeat: regular, linear, even capacity utilization ◼ Synchronized with the customer Individual vs. System Efficiency How fast should we produce? System Efficiency: everything working at the same rate Point Efficiency: works against system efficiency Takt Time Available Working Time per Day ÷ Customer Demand per day = Takt Time Synchronizes the pace of the process to the pace of customer demand The Customer The Drummer Keeps us in Sync The Band = The Value Stream What are the benefits of Drumbeat? 3. Continuous Flow Processing Batch Processing Batch = 10 pieces, Rate =1 minute per piece A B C Continuous Flow – “Make One, Move One” A B C Create Pull Process A Process B Customer Process C • Pull: a system in which work is done only in response to a signal from the customer or from a downstream process One more please! Okay! Supplier Customer Internal or External Strive For Perfection • Seek perfection through continuous improvement • • • There is no end to the process of reducing effort, time, space, cost, and defects while offering the customer a product they actually want When value flows faster, more waste is exposed in the Value Stream The more the product is pulled, the more impediments to flow are revealed so they can be removed LEAN TOOLS 8 March 2021 Ahmed Mewafi 22 8 March 2021 5S Ahmed Mewafi 23 8 March 2021 ANDON • Visual feedback system for the plant floor that indicates production status. • Acts as a real-time communication tool for the plant floor that brings immediate attention to problems as they occur. Ahmed Mewafi 24 8 March 2021 Bottleneck analysis • Identify which part of the manufacturing process limits the overall throughput and improve the performance of that part of the process. • Improves throughput by strengthening the weakest link in the manufacturing process. Ahmed Mewafi 25 8 March 2021 GEMBA Ahmed Mewafi 26 8 March 2021 Ahmed Mewafi HEIJUNKA (level of scheduling) • A form of production scheduling that purposely manufactures in much smaller batches by sequencing (mixing) product variants within the same process. • Reduces lead times (since each product or variant is manufactured more frequently) and inventory (since batches are smaller). 27 8 March 2021 Ahmed Mewafi 28 Hoshin Kanri (Policy Deployment) • Align the goals of the company with Strategy of the company. • Ensures that progress towards strategic goals is consistent and thorough – eliminating the waste that comes from poor communication and inconsistent direction. 8 March 2021 Ahmed Mewafi 29 8 March 2021 Ahmed Mewafi JIDOKA (Automation) • Design equipment to partially automate the manufacturing process (partial automation is typically much less expensive than full automation) and to automatically stop when defects are detected. • After JIDOKA improving of quality must be observed 30 8 March 2021 JIT (Just In Time) • Pull parts through production based on customer demand instead of pushing parts through production based on projected demand. • Highly effective in reducing inventory levels. • Improves cash flow and reduces space requirements. Ahmed Mewafi 31 8 March 2021 Ahmed Mewafi 32 KPIs (Key Performance Indicators) 8 March 2021 Ahmed Mewafi 33 KPIs (Key Performance Indicators) 8 March 2021 Ahmed Mewafi 34 OEE (Overall Equipment Effectiveness) • Framework for measuring productivity loss for a given manufacturing process. Three categories of loss are tracked: • Availability • Performance • Quality 8 March 2021 Ahmed Mewafi 35 POKA-YOKE (Error Proofing) • Design error detection and prevention into production processes with the goal of achieving zero defects. (QAQC Team) • It is difficult (and expensive) to find all defects through inspection, and correcting defects typically gets significantly more expensive at each stage of production 8 March 2021 Ahmed Mewafi 36 Root Cause Analysis • A problem solving methodology that focuses on resolving the underlying problem instead of applying quick fixes that only treat immediate symptoms of the problem. 8 March 2021 Ahmed Mewafi Single-Minute Exchange of Dies (SMED) 37 8 March 2021 Six Big Losses Ahmed Mewafi 38 8 March 2021 Ahmed Mewafi 39 TPM(Total Productivity Maintenance) 8 March 2021 Ahmed Mewafi 40 TPM(Total Productivity Maintenance) 8 March 2021 Ahmed Mewafi 41 TPM(Total Productivity Maintenance) 8 March 2021 Standardized Work • Documented procedures for manufacturing that capture best practices (including the time to complete each task). Must be “living” documentation that is easy to change. Ahmed Mewafi 42 8 March 2021 Ahmed Mewafi 43 KAZIN (Continuous Improvement) • A strategy where employees work together proactively to achieve regular, incremental improvements in the manufacturing process. APPLICATION OF LEAN Lean is For Everyone • Lean can be applied in every industry and setting • • • • • • Automotive (high volume, repetitive manufacturing) Aerospace (relatively low volume manufacturing) Construction (unique, one-off products) Healthcare (the patient is the product) Financial/Insurance (service industries) Oil & Gas (production and support functions) 6 SIGMA Introduction • What is Six Sigma? Six Sigma is a defined and disciplined business methodology to increase customer satisfaction and profitability by streamlining operations, improving quality and eliminating defects in every organization wide process. (six sigma institute) Six Sigma is a process-based methodology for pursuing continuous improvement. Companies use this methodology to reduce defects in their processes. 6σ Introduction • Business Strategy: Using Six Sigma Methodology, a business can strategize its plan of action and drive revenue increase, cost reduction and process improvements in all parts of the organization. 6σ Introduction • Vision: Six Sigma Methodology helps the Senior Management create a vision to provide defect free, positive environment to the organization. 6σ Introduction • Benchmark: Six Sigma Methodology helps in improving process metrics. Once the improved process metrics achieve stability; we can use Six Sigma methodology again to improve the newly stabilized process metrics. 6σ Introduction • Goal: Using Six Sigma methodology, organizations can keep a stringent goal for themselves and work towards achieving them during the course of the year. Right use of the methodology often leads these organizations to achieve these goals. 6σ Introduction • Statistical Measure: Six Sigma is a data driven methodology. Statistical Analysis is used to identify root-causes of the problem. Additionally, Six Sigma methodology calculates the process performance using its own unit known as Sigma unit 6σ Introduction • Robust Methodology: Six Sigma is the only methodology available in the market today which is a documented methodology for problem solving. If used in the right manner, Six Sigma improvements are bullet-proof and they give high yielding returns 6σ What is Quality? • Simply stated, quality comes from meeting customer expectations. This occurs as a result of four activities: a) Understanding b) Designing c) Developing d) Controlling HISTORY OF 6 SIGMA History of Six Sigma • Carl Frederick Gauss (1777-1855) : He is said to have introduced the concept of the normal curve • Walter Shewhart in 1920s : showed that a process needed correction whenever it reached a point where three sigma were produced from the mean • Edward Deming, the 'Godfather' of quality brought: change in the approaches and attitude towards quality in the early 1950s. • Mikel Harry and Bill Smith (1980s): Developed Deming's concept of process variation as a way to improve performance on Motorola WHAT IS SIGMA AND MAIN DEFINATIONS Introduction • What is Sigma? Sigma, σ, is the Greek letter used to measure the variability in the process. Six Sigma stands for Six Standard Deviations from mean Standard Deviation is a statistical method to define how much variation exists in a set of data or a process. companies accepted three or four performance levels as the standard. These processes created 6210 to 66,800 defects /per million opportunities The sigma level of 3.4 defects per million opportunities is a reaction to increasing customer expectation and the fact that business processes and products are becoming increasingly complex and competitive Introduction Common Six Sigma Defect Rate: The complimentary measurement of yields is defects. If the yield is 90 percent, naturally there must be 10 percent defects Sigma Level: From a quality perspective, Six Sigma is defined as 3.4 defects per million opportunities. This is called a sigma level of quality. Process Capability Indices: Another set of measures exist to quantify the capability of a process or characteristics to meet its specifications. These indices directly compare the voice of the process to the voice of the customer. Defects Per Unit: DPU provides a measurement of the average number of defects on a single unit. Yield: Traditionally, yield is the proportion of correct items you get out of a process compared to the number of raw items you put into it. Sigma: A Measure of Process Capability Sigma is a measure… …that focuses on the variation of the process output Measuring Defects CTQ: critical to quality characteristic - performance requirement for a product or service Example: correct items and quantities delivered to the customer on-time Defect: an event that does not meet at least one of the specified CTQs Example: shipment was on-time and included the correct items, but quantities were incorrect Opportunity: a significant and measurable process parameter that could result in a customer requirement not being met Examples: product availability, order entry, packing, shipping CTQ Examples • • • • • • Timely response to customer inquiries Courteous and helpful customer service associates Correct advice on application of business products Orders delivered on-time Correct and complete order fulfillment Simple returns process CTQs must be specific and measurable First Pass Yield 800 Units Process Front-End 1000 Units 130 Units Rework 125 Units 5 Units 70 Units 925 Units Finished Product Scrap • First Pass Yield = 80% • Reported (Final) Yield = 92.5% Measuring final yield hides process rework (“hidden factory”) Rolled Throughput Yield Calculating Yield in Multiple Step Processes…. Process Steps 1 2 3 4 5 Step Yield 99% 99% 99% 99% 99% RTY 99% 98% 97% 96% 95% Rolled Throughput Yield (RTY) = (0.99) (0.99) (0.99) (0.99) (0.99) = 95% Final yield is a product of the yield of the individual steps within the process and represents the “true” process yield Understanding Cause & Effect Inputs (X) Independent Cause Control Output (Y) Dependent Effect Monitor Y = F(X1 , X2 , X3 , ... Xn ) Output is maximized by controlling the key process inputs What are some examples of inputs & outputs for your business processes? • • • • Cost of Quality PROACTIVE REACTIVE Internal Cost (Scrap/Rework) Prevention Cost (Process Control) Appraisal Cost (Inspection) External Cost (Returns) Six sigma focuses on defect prevention, resulting in lower internal, appraisal, and external costs LEAN 6 SIGMA Process Improvement Methodologies SIX SIGMA ISSUES LEAN ISSUES Variation Waste and Flow Process varies too much Too much rework Poor quality Process not in control ISSUES THAT MAY REQUIRE BOTH LEAN and SIX SIGMA Long internal lead times Poor delivery Changeover time too long Long customer lead times Capacity problems Unexplainable shifts Ineffective inspection Too much downtime Inventories too high Frequent bottlenecks Process doesn’t add value Process Improvement Methodologies SIX SIGMA TOOLS Frequency Plot Run Charts & Signals Pareto LEAN TOOLS TOOLS THAT WORK WITH BOTH LEAN and SIX SIGMA Voice of the Customer Normality ANOVA Process Sigma FMEA Etc. Takt Time Leveled Schedule Quick Changeover 5S Value Stream Analysis Error-proofing Kanban FIFO Lanes Kaizen Etc. Linking Lean and Six Sigma Deployment: “Just do it!” Changes 6 w k. Forecast John’s Home Center Daily Orders MRP Weekly FAX 11,400 Flat 500 lb box 3,500 phillips 14,900 / mo. y Weekl ekly 2X We Value Stream selection and goal-setting 3 mo. Forecast Production Control Bruce’s 1500 lb coils Weekly Schedule Box = 20 Daily Daily Ship Schedule SHIPPING Press I Material Stores Area Coils 10 days Handles 6 day s Sub Assy 1 I 1 10,000 flat 8,000 phillips Sub Assy 2 I 1 3,200 flat 1,100 phillips Mark I 1 2,200 flat 1,000 phillips Assembly I 1 1,200 flat 4,000 phillips 1.5 sec CT 40 sec CT 71 sec CT 54 sec CT 59 sec CT 90 min c/o 5 min c/o 5 min c/o 10 min c/o 5 min c/o 80% U/T 100% U/T 100% U/T 90% U/T 100% U/T 2 shif ts 2 shif ts 2 shif ts 2 shif ts 2 shif ts Staging Lean Projects I 4,400 flat 800 phillips Production Lead Time 10 day s 24.1 day s 5.8 day s 4.3 day s 7 day s 7 day s 58.2 day s Value Added Time 1.5 sec 40 sec 71 sec 54 sec 59 sec 225.5 sec CURRENT STATE MAP Value Stream Mapping and other analyses • Lean and Six Sigma integration through: • Common Value Stream analysis and objectives • Orchestration of projects Six Sigma Projects Lean Six Sigma Methodology •Project Charter •SIPOC Analysis •Voice of the Customer •Data Collection & Operational Def. •Data Measurement Tools: Process Mapping, FMEA, Sampling, Minitab, Gage R & R, Patterns, Process Capability •Data Analysis Tools: Cause & Effect Diagrams, Pareto Charts, Hypothesis Testing, Regression Analysis, Design of Experiments •Generating, Evaluating, & Selecting Solutions •Control Charts Define Measure •Product Family •Current State Value Stream Map •Future State Value Stream Map Analyze Improve Control •Creating Flow: 1. Select the Loop 2. Time and Work Analysis 3. Evaluate Equipment 4. 5. 6. 7. 8. Design Cell Layout Determine Staffing Plan the Operation Plan the Implementation Implement and Debug 9. Continuous Improvement 10. Project Closure ◼ Kaizen Workshop ◼ Standardized Work ◼ 5S & Visual Workplace ◼ Ergonomics ◼ MistakeProofing 7 Design Practices of Lean • Segregating complexity • • Cluster tasks of similar difficulty Set different performance goals for clusters with different degrees of difficulty • Eliminating loop-backs • • Eliminate confusion about what to do when Reduce delays and waste 7 Design Practices of Lean (cont.) • Setting a Common Tempo • • • Determine customer demand Time each step Determine minimum number of employees needed to meet customer demand • Placing linked processes near one another • • • Eliminate wasted movement Employees understand entire process Employees see their impact on customer 7 Design Practices of Lean (cont.) • Balancing loads • • Balance work evenly among employees Eliminate unnecessary delays by changing how work is allocated • Standardizing procedures • • • Improve employee productivity Enable cross-training Make workload visible to Process Owners 7 Design Practices of Lean (cont.) • Posting performance results • • • Display cell’s hourly productivity Hold impromptu meetings to solve performance problems as they arise Rewards come from objective results employees can track themselves, rather than subjective observations of bosses OVERVIEW DMAIC—The Process Improvement Method DMAIC: A Universal Problem-Solving Methodology Control Define Measure Improve Analyze Introduction The Three key terms of Six Sigma • Process Baseline • Process Entitlement • Process Benchmark Six Sigma Roles and Responsibilities DEFINE: Define the Project • Goal • Define the project’s purpose and scope and get background on the process and customer 5 1 CONTROL DEFINE IMPROVE MEASURE 4 2 • Output ANALYZE • A clear statement of the 3 intended improvement and how it is to be measured • A high-level map of the process • A translation of the “Voice of the Customer” into “Critical to Quality Characteristics” DEFINE, cont. • Approach Develop charter Map the process Understand the Voice of the Customer DEFINE, cont. • Tools Charter Purpose: Scope: Importance: Schedule: • Charter ____ ____ Resources: • SIPOC analysis depicting the major components of your process ____ DEFINE, cont. • Tools • Customer research such as interviews, focus groups, surveys • Pareto chart(s) depicting 150 why this project is important to the customer 140 Pa re to Cha rt of Custome r Prioritie s 130 120 # of problems 110 100 90 80 70 60 50 40 30 20 10 C orrec t Timely inf ormation R es ponse Price Friendly staf f Other MEASURE: Measure the Current Situation • Goal • Focus the improvement effort by gathering information on the current situation 5 1 CONTROL DEFINE IMPROVE MEASURE 4 2 ANALYZE 3 MEASURE, cont. • Output • Data that pinpoints problem location or occurrence • Baseline data on how well the process meets customer needs (to determine current process sigma) • Understanding of how current process operates • A more focused problem statement MEASURE, cont. Approach Collect baseline data on defects and possible causal factors Plot defect data over time and analyze for special causes Create and stratify frequency plots and do Pareto analysis (if appropriate) Calculate process sigma Create detailed process maps MEASURE, cont. • Tools • Control charts or time plots help you look for patterns over time in the variation • Stratified frequency plots reveal differences in how often a problem occurs in different settings M anufacturing Service Government MEASURE, cont. • Tools • Pareto charts are used to stratify the indicator into its major contributors Components of the problem Subcomponents of Problem A A B C D A1 A2 A3 A4 Problem Statement “We’ve pinpointed where a specific problem occurs most often. Biggest payback will come from focusing our attention here.” MEASURE, cont. • Tools • Process sigma calculations describe current process capability 1. Determine number of defect opportunities per unit O = 1 2. Determine number of units processed N= 5000 3. Determine total number of defects made (include defects made and later fixed) D= 250 4. Calculate Defects Per Opportunity 5. Calculate Yield DPO= D Nx O = Yie ld = (1-DPO) x 100 = 6. Look up Sigma in the Process Sigma Table Process Sigma = • Flowcharts depict process problems (such as steps that don’t add value) V alue -Added Cost-Added Only .05 95% 3.2 ANALYZE: Analyze to Identify Causes • Goal • Identify root causes and confirm them with data • Output • A theory that has been tested and confirmed 5 1 CONTROL DEFINE IMPROVE MEASURE 4 2 ANALYZE 3 ANALYZE, cont. Approach Develop a focused problem statement Brainstorm potential causes Organize potential causes Collect data Statistical methods to quantify causeeffect relationship ANALYZE, cont. • Tools • Causeandeffect diagrams or other tools that show potential causes • Tree diagram ANALYZE, cont. • Tools • Scatter plots that show the relationship between two variables can help verify causal relationships Y • Stratified frequency plots can X also confirm patterns Made the Sale Made the sale 5 10 15 20 25 30 35 40 45 50 55 60 >60 Did Not Mak e the make Sale Did not the sale 5 10 15 20 25 30 35 40 45 50 55 60 >60 Time With Customer (in minutes) IMPROVE: Implement Solutions and Evaluate Results • Goal • Develop, try out, and implement solutions that address root causes • Use data to evaluate both the solutions and the plans used to carry them out • Output • Planned, tested actions that eliminate or reduce the impact of the identified root causes • Before and after data analysis that shows how much of the initial gap was closed • A comparison of the plan to actual implementation 5 1 CONTROL DEFINE IMPROVE MEASURE 4 2 ANALYZE 3 IMPROVE, cont. Approach Brainstorm many possible solutions to identified root causes Select solution(s) Implement plan(s) Develop plan(s) Quantify results Pilot plan(s) Evaluate the benefits of the improvement • Tools • Prioritization matrix • Responsibility chart Problem Root Cause Countermeasure nt me ent e ov m pr pl e m l I Im tia e to n te as Po E Pr ob To abi li tal ty o s f Ac core Suc ti o ce n ss IMPROVE, cont. IMPROVE, cont. • Tools • Gantt chart Reduce Call Transfers ID Task Name MAY 5/31 JUNE 6/7 6/14 6/21 6/28 1 Update extension lists 2 Dept supv. update job responsibility lists Calvin, Max, Sheryl 3 Update names and extension numbers Maria 4 Mark responsibilities on phone ext. list 5 Maria Revise autoattendant 6 Assemble team 7 Examine data 8 Decide what options should be given 9 Pilot and test new language Calvin Team, TBD Team, TBD IMPROVE, cont. Before • Tools • Control charts or time plots showing both past and present performance of the indicator After Good } Improvement } Remaining Gap Changes implemented Target Time • Revised Pareto chart from MEASURE that confirms reduction of the root causes After Before } A1 A2 A3 A4 A2 A1 A3 Improvement A4 IMPROVE, cont. • Tools • Revised process sigma calculations showing new process capability Old New 1. Determine number of defect opportunities per unit O= 1 1 2. Determine number of units processed N= 5000 5500 3. Determine total number of defects made (include defects made and later fixed) D= 250 103 = .05 .02 95% 98% 3.2 3.6 4. Calculate defects per opportunity 5. Calculate yield DPO= D NxO Yield = (1DPO) x 100 = 6. Look up sigma in the process sigma table Process sigma = CONTROL: Standardize and Make Future Plans • Goal • Maintain the gains by standardizing work methods or processes • Anticipate future improvements and preserve the lessons from this effort 5 1 CONTROL DEFINE IMPROVE MEASURE 4 2 • Output ANALYZE • Documentation of the new method 3 • Training in the new method • A system for monitoring its consistent use and for checking the results • Completed documentation and communication of results, learnings, and recommendations CONTROL, cont. Approach Develop and document standard practices Train Ongoing monitoring Build process for updating procedures Summarize and communicate learnings Make recommen dations for future plans CONTROL, cont. •Tools • Training • Process management Act Standardize Check Do • “Conspicuous standards” that Warning System make new methods obvious Fill to here CONTROL, cont. Date of Issue: Issued by: Revision Date • Tools • Process management chart Approved by: Signature Reason Product Name Process Name Process Code # Work Instruc tions Flow chart Control/Check Points Code # Charac- Control terist ics Limits Method Who Response to Abnormality Immediate Fix Permanent Fix 1 2 • Selfaudit 12 Question: Knowledge/Understanding 1. Have the performers seen the written procedure? 2. Are the performers literate in the language of the procedure? 3. Do the performers have a common understanding of the words in the procedure? No (Never) Mostly No Some times Mostly Yes Yes (Always) Who Notes CONTROL, cont. •Tools • Report • PDCA Results Learnings • • • Recommendations next • Storyboard Example of 6 sigma project DMADV Overview of DMADV • The DMADV/ DFSS methodology is used when a new process or a product has to be developed. DFSS is an acronym for Design For Six Sigma • DFSS describes how to implement the method of using tools, training, measurements, and verification so that products and processes that are designed, meet with the demands of Six Sigma. • A more specific version of DFSS is DMADV, i.e., Define, Measure, Analyse, Design, and Verify. DMADV uses Six Sigma principles in product/process design in a new business process. 5 1 VERIFY DEFINE DESIGN MEASURE 4 2 ANALYZE 3 THANK YOU