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• What is Lean Six Sigma?
• What can Lean Six Sigma do?
• How to get started
Lean Six Sigma
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2

• Cut services
• Reduce labor (lay-off)
• Contract work out
• Eliminate product features
• Remove roadblocks so your employees can produce
• Assign resources to bottlenecks
• Maximize internal capabilities
• Focus on what the customer wants to buy
Lean Six Sigma
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Combined 2 industry concepts:
• Lean
• Six Sigma
Combines problem solving tools:
Kanban
Kaizen
SPC
JIT - Pull
Visual
Mgt.
5S
Setup
Reduction
Value
Stream
Mapping
ANOVA
DOE
Hypothesis
Testing
DFSS
MSA
Root Cause
Analysis
Lean Six Sigma
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• Focus on what is of VALUE to the customer
• Separate non-value added from value added
– Map the actions required to produce (value stream)
– Eliminate activities that do not move the product closer to its final form
• Make the remaining value added activities flow smoothly
• Produce only what customers need (pull)
• Continuous improvement
Lean Six Sigma
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5

Traveling to Groton, CT
Ticket A
• $500 round trip
• 6 hours
• 3 layovers
• Arriving in NYC
Ticket B
• $650 round trip
• 3 hours
• 1 layover
• Arriving in
Groton/New London
What does value mean to you?
Lean Six Sigma
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Value
– More to value than just cost
– “Defined by the ultimate customer” – Womack
• Voice of the Customer (VOC)
– Expressed in terms of
• A specific product
• A function or capability
– Questions
• What does the customer want to buy?
• What would they pay extra for?
Focus on what is of VALUE to the customer
Lean Six Sigma
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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 added
Lean Six Sigma
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UNDER-UTILIZED
SKILLS
Steps are wasteful, people are valuable
Lean Six Sigma
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Valve Manufacturing
• Objective: Reduce time to produce valves
• Solution: Revise process – no temporary attachments
Lifting
Blocks
“Legs”
(2)
Tapped holes for lifting
“Feet”
Lean Six Sigma
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Certification Package
Not Required
Redundant Review
Mill Test Report
Minimize Rework
Lean Six Sigma
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Batch & Queue Processing
Process
A
Process
B
Process
C
10 Minutes
10 Minutes
10 Minutes
30+ Minutes for order of 10
Continuous Flow
Process
A
Process
B
Process
C
Lean Six Sigma
12 Minutes for order of 10
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OUT
IN
Dept 1
OUT
Batch
Dept 2
From: NAVSEA VSA Training
Continuous Flow
DONE
4 3
OUT
IN IN
1 2
Dept 3
IN IN
Dept 4
OUT
DONE
Batch processing has a direct impact on the total Work-in-Process
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From: NAVSEA VSA Training
Transport
Disassemble
Wait
Remove From
Ship
Set-up
Machine
Wait
Transport
Machine Re-Install
Start
Broken
Component
= Value Added Time
Time
Repaired
Component
Finish
= Non-Value-Added Time ( WASTE )
Value-Added time is typically only a small percentage of the total time
Lean Six Sigma
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Approved for Public Release
From: NAVSEA VSA Training
Lean Six Sigma
15

From: NAVSEA VSA Training
Time amount
Small Amount of
Time Eliminated
Traditional Focus
• Improve Value-Added work steps
• Better tools, machines, instructions
• Result: Small time savings of time saved
Lean Focus
• Make all of the Value Stream visible
• Reduce or eliminate Non-Value-
Added portions of the process
• Result: Large time savings
Lean Six Sigma
Time savings have a direct impact on
• Cost
• Schedule
• Capacity
• Flexibility
• Resources • Etc.
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Traditional Thinking:
Batch Production
—like a meandering stream with many stagnant pools, waterfalls, and eddies
Doubling production rate means doubling resources
Continuous Flow Thinking:
Pipeline with fast-flowing product
– no stops, piles, or back-ups
Doubling production rate means halving the time waiting
“’Flow’ production was an even more valuable innovation of Henry Ford’s than his betterknown ‘mass’ production model.”
Lean Six Sigma
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• Focuses on what is of VALUE to the customer
– Understand customer expectations and requirements
– In terms of the what the product provides, not just the product itself
• Eliminates activities that do not move the product closer to it’s final form
– Reduces the 8 types of waste
• Creates continuous flow
Lean Six Sigma
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• Reduce variation
• Y=f(X)
• Making decisions based on data
Lean Six Sigma
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Change in quality philosophies
Traditional “Goalpost” Philosophy
LSL USL
Loss
$$
Loss
$$
OK
Loss
$$
Taguchi Philosophy
LSL USL
Loss
$$
Loss
Anything outside the specification limits represents quality losses
Lean Six Sigma
Any deviation from the target causes losses to society
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Practical Problem
(Define/Measure)
Statistical Problem
(Analyze)
Practical Solution
(Control)
Statistical Solution
(Improve)
Y =f (x)
Lean Six Sigma
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• Practical Problem
– Pass rate for Technicial Exams was declining
• Statistical Problem
– Y=f(X)
– Y – Scores
– X
• Exam section
• Place of training
• How often skills are used (experience)
• Elapsed time since training
• Statistical Solution
– 3 sections of the exam are the highest trouble spots
– Experience is the most significant factor in passing
• Practical Solution
– Focus training on 3 areas for inexperienced technicians
Lean Six Sigma
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99.99966% of values are within specifications m
LSL USL
Approved for Public Release s s
Lean Six Sigma s
Process
23

99% ( ≈3.8
s
)
• 20,000 lost articles of mail per hour
• 15 minutes of unsafe drinking water each day
• 5,000 incorrect surgical operations per week
• 2 short or long landings at most major airports each day
• 11 hours of no electricity per month
Lean Six Sigma
99.99966% (6 s
)
• 7 lost articles of mail per hour
• 1 minute of unsafe drinking water per 7 months
• 1.7 incorrect surgical operations per week
• 1 short or long landing every 5 years
• 1 hour of no electricity every 34 years
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Reduce concave & convex defects in pipe butt welds
Experimented on the effects of:
• Purge pressure
• Starting point
• Weld segment overlap
• Intersegment temperature
• Welder technique
Convex
Concave
Identified key factors to control and ones that had no effect
Lean Six Sigma
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Test
Org ’s
Main
Stores
Notice Required
Time to assemble
Cost
Frustration
Hardware
Stores
Before
Months
Weeks
Overhead
High
Lean Six Sigma
After
Days
Days
Direct/Defined
Low
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Tile Material Manufacturer
• Mapped the “value stream”
• Identified key constraints
• Implementing “just go do its”
• Identified specific resources needed to support 2 ships per year
Lean Six Sigma
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• Identify critical inputs & control them
• Quantifiable management
– Measure performance
– Decisions based on data
Y =f (x)
Lean Six Sigma
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Control Methods
Best
•
Type 1 Corrective Action – Countermeasure
•
Type 2 Corrective Action – Flag
•
SPC/SPM – Empowered Operators
•
Type 3 Corrective Action – Inspection
•
SPC/SPM – Operators Not Empowered
•
Standard Operating Procedure
•
Warning Signal – Used to Detect Defects
•
SPC/SPM - Wallpaper
Lean Six Sigma
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Look for repetition:
• Valve manufacturing
• Certification package review
• Pipe welding
• Effluent discharge
Lean Six Sigma
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• Product Families
– Different products that follow the same steps
• Processes
– Repetitive tasks
• For a product
• For a service
• For just normal day to day activities
– “If it’s not the first time, then there is a process.”
Lean Six Sigma
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Approved for Public Release

• Extend Lean and Six Sigma to suppliers
31%
Government
Material
Shipyard
Labor
39%
30%
Purchased
Material
Block III (SSN787) Costs
Lean Six Sigma
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Conduct joint process improvement projects with VIRGINIA Class vendors to reduce defects, and cycle time via the application of Lean Six Sigma tools and techniques.
• Create a win-win between supplier and EB
– Tangible improvement
– Benefits both companies
• Funded for 2 projects/year
Lean Six Sigma
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1. Voice of the Customer
– All customers not just purchasing
2. Kick-off with Vendor
– Identify problems, issues, roadblocks
3. Value Stream Analysis & Development of
Improvement Plan
4. Improvement Plan Execution and
Follow-on Onsites
Lean Six Sigma
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“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
Approved for Public Release

Involve the employees
• Examine the detailed process with them
• Empower them to make process changes to:
– Eliminate non-value-added steps
– Keep adding value continuously without interruptions
• Ask the right questions
– What can we do to save time?
– Not: What can we do to save money?
• Get to the root causes
– 5-Whys, etc.
Lean Six Sigma
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Reduce work in process (WIP):
Longer lead times
Delayed sales
Increased expenses
= Less Profit!
Jobs In WIP
Avg.Comple
tion
Lean Six Sigma
10 days
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Books to read:
• Lean Thinking . Womack & Jones
• Lean Six Sigma: Combining Six Sigma
Quality With Lean Speed. M. L. George
• Theory of Constraints.
Goldratt
• The Goal.
Goldratt
Lean Six Sigma
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Communicate with Electric Boat
• Things you are doing
• Ask for clarification on our needs
– Voice of the Customer
Lean Six Sigma
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• What is Lean Six Sigma?
• What can Lean Six Sigma do?
• How to get started
Lean Six Sigma
Approved for Public Release
41