What is Lean?
⚫
⚫
⚫
⚫
Lean production focuses on eliminating waste in processes (i.e.
the waste of work in progress and finished good inventories)
Lean production is not about eliminating people
Lean production is about expanding capacity by reducing costs
and shortening cycle times between order and ship date
Lean is about understanding what is important to the customer
1
“go and see for yourself”
WASTAGE: Muda , Mura , Muri
Muda
Muda means wastefulness, uselessness
Two types of Muda
Type 1 Non-value-added activities in the processes necessary for the end customer. (Inspection and safety
testing)
Type 2 Non-value added activities - unnecessary for the
customer.
Mura
Mura means unevenness, non-uniformity, and irregularity.
Mura is the reason for the existence of any of the 7 wastes.
Mura drives and leads to Muda.
Solution:
Level out the workload so that there is no unevenness or
waste accumulation.
Just-In-Time
Muri
Muri means overburden, beyond one’s power,
excessiveness
Muri leads to absenteeism, illness, and breakdowns of
machines.
Standardize work and evenly distribute the workload
Lean Is A Journey
⚫
⚫
⚫
⚫
The Journey never ends
Toyota estimates it is only 50% wastefree
Where can we begin? Where can we
improve?
5S
16
What is Six Sigma?
A Vision and Philosophical commitment to our
consumers to offer the highest quality, lowest cost
products
A Metric that demonstrates quality levels at
99.9997% performance for products and processs
A Benchmark of our product and process capability
for comparison to ‘best in class’
A practical application of statistical Tools and Methods
to help us measure, analyze, improve, and control our
process
17
How good is good enough?
99.9% is already VERY GOOD
But what could happen at a quality level of 99.9% (i.e., 1000 ppm),
in our everyday lives (about 4.6)?
•
4000 wrong medical prescriptions each year
•
More than 3000 newborns accidentally falling
from the hands of nurses or doctors each year
•
Two long or short landings at American airports each day
• 400 letters per hour which never arrive at their destination
18
How can we get these
results?
⚫
13 wrong drug prescriptions per year
⚫
10 newborn babies dropped by doctors/nurses per year
⚫
Two short or long landings per year in all the airports in the U.S.
⚫
One lost article of mail per hour
19
Six Sigma ROI
Motorola ROI
1987-1994
• Reduced in-process defect levels by a factor of 200.
• Reduced manufacturing costs by $1.4 billion.
• Increased employee production on a dollar basis by 126%.
• Increased stockholders share value fourfold.
AlliedSignal ROI
1992-1996
• $1.4 Billion cost reduction.
• 14% growth per quarter.
• 520% price/share growth.
• Reduced new product introduction time by 16%.
• 24% bill/cycle reduction.
22
Definitions
⚫
 – Standard Deviation, a measure of
variability
⚫
Six Sigma – A quality improvement philosophy
that focuses on eliminating defects through
reduction of variation in a process
⚫
Defect – A measurable outcome that is not
within acceptable (specification) limits
TQM Versus Six Sigma
TQM
Six Sigma
A management
philosophy of quality
improvement
Encourages involvement
of all employees
A philosophy that focuses
on defect reduction and
cost reduction
Relies on a selected group
of highly-trained employees
Senior management
provides direct support
Senior management is held
accountable for results
Key Success Factors for
Six Sigma
⚫
⚫
⚫
⚫
⚫
⚫
Committed leadership from top management
Integration with existing initiatives, business
strategy, and performance measurement
Process thinking
Disciplined customer and market intelligence
gathering
A bottom-line orientation and continuous
reinforcement and rewards
Training
GE’s Six-Sigma
Problem Solving Approach
1.
Define
2.
Measure
3.
Analyze
4.
Improve
5.
Control
DMAIC - Define
⚫
Identify customers and their priorities
⚫
Identify business objectives
⚫
Select a six sigma project team
⚫
Define the Critical-to-Quality (CTQ’s)
characteristics that the customers consider
to have the most impact on quality
DMAIC - Measure
⚫
Determine how to measure the processes
• Identify key internal processes that
influence CTQ’s
• Measure the defect rates currently
generated relative to those processes
DMAIC - Analyze
⚫
Determine the most likely causes of
defects.
• Identify key factors that are most
likely to create process variation.
DMAIC - Improve
⚫
Identify means to remove causes of the
defects.
• Confirm the key variables and quantify the
effects on CTQ’s
• Identify maximum acceptable ranges for the
key variables and a system to measure
deviations of the variable
• Modify the process to stay within the
acceptable ranges
DMAIC - Control
⚫
Determine how to maintain the
improvement
• Put tools in place to ensure that the key
variables remain within the maximum
acceptable ranges under the modified
process
Outcomes
Hospital-acquired infections are a big concern. In fact, in 2003, “each
year roughly 80,000 patients become infected and 30,000 to 60,000 die
at a cost of $3 billion nationally.” Observing the process and using Lean
principles in a DMAIC framework can drive improvements.
DEFINE: What are the specific infections concerned? In what hospitals
over what time frame will improvement efforts happen? For example,
there were central line-associated infections in 100 intensive care units
(ICUs) in Michigan hospitals during 2007.
MEASURE: Measure the current state (three infections per 1,000
catheter-hours).
ANALYZE: Determine the root cause (specific process steps and
procedures introducing contamination).
IMPROVE: Implement a standardized checklist (basic steps related to
hygiene, disinfectant, sterile barriers, and avoidance of susceptible
areas). Enhance equipment (catheter-insertion cart).
CONTROL: Incorporate training and reinforcement to change the culture
and internalize the process. Empower the nursing staff to ensure
enforcement.
Fishbone (Ishikawa) Diagram
Problem: Wrong/Delayed/Damaged Delivery
Problem: Bad Burgers
Problem: Increased Invoice Error
What is Kaizen?
⚫
⚫
⚫
⚫
⚫
Kaizen (Ky’zen)
“Kai” means “change”
“zen” means “good (for the better)”
Gradual, orderly, and continuous
improvement
Ongoing improvement involving everyone
Kaizen isn’t a prescription for improvement;
instead, it is a way of seeing the world.
37
Core Principles of Kaizen
•The most essential principles of Kaizen are:
•Every process can be improved
•Continuous improvement is necessary to be
competitive
•Defects and failures are most often the fault of
imperfect processes, not people
•Every member of the organization must have a role in
improvement
•Small changes can have an enormous impact
Kaizen
The starting point for improvement is to recognize the need.
This comes from the recognition of a problem.
If no problem is recognized, there is no recognition of the need for
improvement.
Complacency is the arch enemy of Kaizen.
Five instructions of Kaizen:
• Know your customer – Identify their interests so that you can
enhance their experience.
• Let it flow – Everyone in the organization should aim to create
value and eliminate waste.
• Go to the Gemba – Value is created in the places where work is
done. Leaders should go there.
• Be transparent – Performance improvements should be tangible
and visible.
• Empower people – Set goals for teams and give them the tools to
achieve them.
Gemba Walk
The original meaning of Jidoka was "Automation" just as in English.
It was written in Kanji as shown. The Kamigo Engine Plant
developed many stoppage devices to halt automated machines. This
became the word "Autonomation". It was pronounced as Jidoka but
the Kanji had a subtle difference-- the addition of a few strokes
representing humans or people.
Automation is focused on labor reduction. Autonomation (Jidoka) is
focused on quality improvement, and the independence of the man
from the process. Automation increases technicality, Autonomation
reduces technicality. This allows skill levels to be lower in similar
processes when comparing East to West. Another cost reducer!
Tools for Six-Sigma
and Quality Improvement
⚫
Elementary and advanced statistics
⚫
Product design and reliability analysis
⚫
Measurement
⚫
Process control & Process improvement
⚫
Implementation and teamwork
⚫
Customer survey and feedback
⚫
Lean thinking
Organization for Six Sigma
⚫
⚫
⚫
⚫
Project Champions – project selection
and management, knowledge sharing
Master Black Belts – instructors, coaches,
technical leaders
Black Belts – project team leaders and
team members
Green Belts – project team members,
temporary team members