Lean Six Sigma Tools and Techniques
Green Belt Certification
Session One
(Best Practices Improvement Tools and Approaches)
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Session 1: Agenda
– Introduction to Quality
Management Systems and
Lean Six Sigma
– Overview of DMAIC
– Lean Six Sigma Roles
– Lean Sigma Team Exercises
Program Design
• The Lean Six Sigma Green Belt workshop is
designed to help you learn how to make factbased decisions as you create the Lean Quality
Management System
• [It will enable you]To be data driven in your
approach to improving processes and the
outcomes for your customers.
• Lean Six Sigma is a strategy, a measurement and
process that creates tremendous value
• Certification exams will be given at the conclusion
of the workshop sessions.
Program Expectations:
At the completion of the Program,
you will clearly see:
1.
Your role as a Lean Six Sigma Green Belt and Project Team Member in
a Lean Sigma Quality Management system
2.
How this will begin to help you eliminate the nagging and ongoing
problems we face day-in-day-out, and the value of working on Lean
improvement projects
3.
Team-building skills and problem-solving tools that will allow you to
measure and improve your processes
4.
The value of the Lean Sigma model and consistent language across the
organization
5.
How the Lean Sigma Quality Tools can be used to .improve process cycle
time and efficiency, eliminate waste and improve effectiveness.
6.
How to look, learn and listen
What is Lean Six Sigma?

Sigma (  ) – a Greek letter that indicates variation about the average of any
process

It is a measure of process output consistency (standard deviation)

6 Sigma (  ) = 3.4 defects/per million opportunities

Lean Six Sigma eliminates waste and reduces cycle time

Lower Cycle Time = Higher process sigma = better process output
 fewer errors
 lower operating costs
 lower risks
 improved mission performance
 better use of resources
A Lean Organization
• Features programs and products [that] are delivered in
the right amounts, at the right time, to the right
location, and in the right condition (see Lean
Enterprise pg. #1)
• Programs and products are produced only for a
specific customer rather than being added to
inventory
• Allows production of a wide variety of programs and
services, efficient and rapid changeover as needed,
rapid response to fluctuating demand, and increased
quality
• Fosters a company culture in which all employees
continually improve their skill levels and production
processes
Goals of the Lean Organization
(
1. Improve Quality
2. Eliminate Waste
3. Reduce Lead Time
4. Reduce Total Costs
Mental Models of Quality
There are six mental models of quality:
• Status Quo: Quality is not an issue at our organization . . . We hire only
the best people and our quality is as good as [anyone’s] . . . We keep up
to our usual standards.
• Quality Control: Quality is the process of inspecting and catching
mistakes before they get shipped . . . We hold people accountable for
their actions
• Customer Service: Quality is listening to our customers and fixing their
problems as quickly as possible at no extra charge . . . We have an 800
number to deal with bugs and complaints
• Process Improvement: Quality is using SPC, re-engineering and other
process management techniques [are used] to eliminate unacceptable
variation . . . People in teams are a resource for fixing process variation
• Total Quality: Quality is a transformation in the way we work, think, and
measure success . . . we operate a seamless value-adding system with
all aspects optimizing for a common purpose
• Lean Six Sigma: Lean Management and Six Sigma working together
Lean Six Sigma at Noven
• Improve Quality: What is the mental model
of quality that currently exists?
• Eliminate Waste: What do we know about
the current areas of waste?
• Reduce Lead Time: What is our current
lead time for key products?
• Reduce Total Costs: Where does the
opportunity exist for the maximum cost
reduction?
Lean Management System Defined
Lean Management is:
“A systematic approach to identifying
and eliminating waste (non-value-added
activities) through continuous
improvement by flowing the product at
the pull of the customer in pursuit of
perfection”
A Lean Management Control System
consists of 42 control points grouped
into 9 major key areas
Lean Six Sigma: In A Nutshell
“Lean Six Sigma (LSS) is a quality program that,
when all is said and done:
• improves your customer’s experience,
• lowers your costs
• and builds better leaders
LSS accomplishes this by reducing waste and
inefficiency and by designing a company’s
programs, products and internal processes so
that customers get what they want, when
they want it, and when you promised it”….
Jack Welch
Evolution of Quality Management
Lean Six Sigma
6 Sigma Performance Excellence:
New Millennium
Process Quality - 1990s
Projects Quality – 1980s
Product Quality – 1920s-1950s
A Historical Perspective
Typical Performance
Defects per million opportunities
IRS - Tax Advice (phone-in)
Restaurant Bills
Doctor Prescription Writing
Payroll Processing
Order Write-up
Preventable
hospitable
deaths
Purchased Material
Lot reject Rate
Journal Vouchers
Average
Company
Air Line Baggage Handling
Best in Class
(with ± 1.5 Sigma Shift)
Domestic Airline
Flight Fatality Rate
Process Sigma Conversion Table
Defects per
1,000,000
Defects
per
100,000
Defects
per
10,000
Defects
per
1,000
Defects
per
100
Yield
Process
Sigma
99.99966%
6.0
3.4
0.34
0.034
0.0034
0.00034
99.9770%
5.0
230
23
2.3
0.23
0.023
99.3790%
4.0
6,210
621
62.1
6.21
0.621
93.320%
3.0
66,800
6,680
668
66.8
6.68
69.20%
2.0
308,000
30,800
3,080
308
30.8
31%
1.0
690,000
69,000
6,900
690
69
Practical Example
Airline Baggage Handling
• Assume 10 years ago Baggage Handling was a 2 Sigma
process and 5 years ago it was at 3 Sigma
• What percentage of the bags were lost at these levels?
• Assume 5 years ago the Airlines installed Bar Code
tracking of baggage and improved the system to a 4
Sigma process.
• What changed? What’s the percentage of lost bags
today?
• How much improvement is this over the 2 and 3 Sigma
levels?
• How has that affected customers and the airlines?
Is 99% Good Enough?
Practical Meaning of “99% Good” in USA
 20,000 lost articles of mail per hour
 Unsafe drinking water almost 5500 seconds per year.
 200,000 wrong drug prescriptions each year
 No electricity for almost 7 hours each month
6
At Six Sigma:
 1.1 lost articles of mail each hour
 180 seconds of unsafe drinking water per year
 11 wrong drug prescriptions a year
 No electricity for 3 minutes per year
The Lean Six Sigma Systems
People
Social System
Project Management
Technical
System
Tools
Management
System
(DMAIC)
Tactics
LEAN SIGMA Lifecycle Tollgates
MEASURE
DEFINE
1
2
Define
Problem,
Create
IMPROVE
6
9
Analyze
Team Charter,
Measurement
The
& Project Plan
Scorecards
Data
5
Develop the
Implement
SIPOC
Project Data
Collection Plans
Diagram
3
4
ANALYZE
Develop the
CTQs &
SIFOC
7 Analyze
8
CONTROL
11
Determine
Generate
Lean
Solutions
Control Points
10
12
Select/
Implement
The
Test
The Lean
Process
Solutions
Analyze
The Root
Causes
Management
Response Plan
Project Selection Matrix
Factors
The project…
A. addresses a legal or funder mandate
B. addresses a strategic challenge
(opportunity or threat)
C. addresses an urgent need or KPI
D. will positively impact the dashboard or
other measure on the Balanced
Scorecard
E. has data available to aid in
development of measurements and
indicators
F. will positively impact customers
(internal/external)
G. will not require additional funding
H. will not require much additional staff
time
I. can be completed in less than 6 months
J. can be controlled locally by team
Grand Totals
Ratings
D N A
SD
SA
1-2 3-4 5-6 7-8
9-10
Weig Tota
ht
l
Define Stage Cycle
Define the Problem
Define
Customer
CTQs
SIPOC
Map
Six Steps to Defining the Problem
• Step 1: Identify the Project Theme and its Key
Drivers
• Step 2: Identify the Customers and
Processes involved
• Step 3: Identify the Team Members and
Project Champion
• Step 4: Develop the Project Charter
framework
• Step 5: Define the Problem Statement
• Step 6: Identify the ‘Desired State’ or
Vision/Goal(s)
Step 1: Identify Project & Drivers
• Each project has a unique
Theme and [D]rivers
associated with it
• The Theme is usually a
paragraph in length
• The Drivers consist of between
3 and 6 items that are the
driving force behind the project
Step 3: Identify Team members
• The project team consists of a Champion,
Team Leader, and Team Members
• There are usually 6-7 people on a typical
Lean Six Sigma project, with a maximum
number usually at 10
Step 4: Project Charter
Framework
The Project Charter Framework has the following components:
• Business Case
• Project Scope
• Goals And Objectives
• Problem Statement
• Expected benefits
• Milestones
• Team members & Champion
The Charter is the contract between the team, its champion, and
senior management/steering committee
• See Six Sigma for Everyone (pg. 33) for a Charter Framework
example
Step 5: Create Problem Statement
A Problem Statement consists of 1-2 sentences describing the
symptoms arising from the problem being addressed.
Poorly Written
Well Written
Comment
The new database is
to hard to use
Only 50% of users
are using the
database because
based on interviews
the new system is
difficult to use and
understand
Pain must be
observable and
measurable
Hotel occupancy is
down because of
poor service
Hotel occupancy is
down
Occupancy may be
down because of
other causes: rates,
parking, time of year,
advertising.
We should set up a
web site to increase
sales of our product
The web site is a
solution, but what is
the problem?
Problem Statement Guidelines
1. Develop a statement that accurately and clearly
describes the current condition that you want to
change
2. Use a simple statement of fact
3. Describe the ‘pain’ clearly and in measurable terms
4. Avoid implied causes or solutions
5. Pass the ‘So What’ test
6. Make it short and sweet = 25-30 words
Step 6: Identify the Desired Future State
• The ‘desired state’ is where you want to be when
the problem is solved
• Defining the desired state, or vision, provides a
focus and direction
• A measurable goal makes it possible to track
progress
• It also helps to evaluate the quality of the solution
• It describes the outcome you hope to reach by
solving the problem
DMAIC Management Planning System
Define
•Define
Problem
Theme
Measure
•Confirm Customer
Requirements
Analyze
•Analyze the
Measurement
System
•Create
Charter
•Define The
Measurement
Scorecards
•Develop
Change
Management
Roles
•Create Process
Maps & Value
Stream Maps
•Develop Areas
of Waste
Hypotheses
•Gather Initial Data
and Determine
Current
•Gather Causal
Data
•Develop
[Master plan]
•Create
SIPOC Map
•Define
potential
waste
•Measure
CTQs
Performance
•Stratify Data
•Establish Cost
Benefit
•Analyze the
Process
•Determine &
Validate Root
Causes
•Analyze Areas
of Waste
Improve/
Innovate
Control
•Identify
Breakthroughs
•Implement
Solutions
•Identify / Select
Practical
Approaches
•Measure
Results
•Perform Cost/
Benefit Analysis
•Design Future
State: FMEA
•Establish
Performance
Targets
•Poke-Yoke
•Quick-and-easy
Kaizens
The above elements are the 30 common
building blocks of a LSS Project Plan
•P-D-C-A
Process
•Lean
Management
Scorecards
Key Questions for Each Project