Implementing a Successful Lean Six Sigma Program

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Implementing a Successful Lean Six Sigma Program

• Leon Spackman
• LSS MBB, PMP
• PMC Solutions
• A Business Process Management Company

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Overview

• Training Requirements
• Resources and Timeline
• Pitfalls and Lessons Learned
• Summary

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What is Lean?

• Process improvement methodology developed in
  manufacturing (Toyota Production System has led
  the way)
• Focuses on value to the customer by eliminating
  waste in the process
• Increases speed in our processes
• Effective in both service and manufacturing

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What is Six Sigma?

• A Philosophy
• Customer Critical To Quality (CTQ) criteria
• Fact-driven, measurement-based, statistically
  analyzed prioritization
• Controlling the input process variations--
  yields a predictable product
• Relentless pursuit to drastically reduce
  variation and manage whatever variation is left
  over
• Critical and analytical thinking to solve
  problems
• A Quality Standard and Level
• 6s Zvalue of 6 3.4 DPM (DPMO) 1.5 Cpk
  2.0 Cp 99.99966 FPY

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What is Six Sigma?

• A Structured Problem-Solving Tool/System/Approach
• Phased project Define, Measure, Analyze,
  Improve, Control (DMAIC)
• Common language definitions for verifying and
  solving problems
• A Program
• Dedicated, trained Black Belts, Green Belts,
  Champions, Master BBs
• Prioritized projects with teams - Process
  participants owners
• Program reviews, Steering Committee

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Six Sigma Methodology
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Lean Six Sigma Combined

• Combination of thought and tools of both
  methodologies to improve process cycle time,
  reduce waste, minimize variation, and improve
  customer satisfaction.

Lean
Six Sigma

Lean Six Sigma Application
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Training Requirements

• Orientation for Steering Group and othersOne day
• Six Sigma Green Belt Certificate 40-80 hours of
  classroom completion of project (40-60 hrs)
• Six Sigma Black Belt Certificate 160 hours of
  classroom completion of project (60-100 hrs)
• Lean certification 40-60 hours of classroom
  completion of project (40-60 hrs)
• Combine Lean certification with Green and Black
  Belt
• Specialty focus available Manufacturing,
  Supply, Healthcare, Finance, etc.

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Resources for a LSS Program

• Steering Group
• LSS Training
• Ongoing commitment for project management and
  teams
• Continued Training

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Resources

• Steering Group
• Comprised of senior leaders
• General knowledge of LSS
• Oversee LSS program
• Provide overall guidance and policy
• Select projects
• Select personnel to participate in program
• Review and monitor projects
• Act as champions if needed

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Resources

• Training
• Green Belt 2000-3000 (per person)
• Black Belt 5000-10,000 (per person)
• Lean 2000-3000 (per person)
• Add project time of 40-100 hours (per person)

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Resources

• Project Management
• How many projects per year?
• How much time will be allotted per individual?
• Teams are critical (3-5 per team)
• Green Belts 20-30 of time on projects
• Black Belts 100 on projects

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Resources

• Ongoing Training
• Does everyone get trained and at what level?
• Do trained personnel get further training?
• New personnel
• Training must be ongoing if the program is to be
  viable and effective

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Resources

• Is the investment worth it?
• Motorola from 1987 to 1997
• Five-fold growth in sales, with profits climbing
  nearly 20 percent per year
• Cumulative Six Sigma savings estimated at 20
  Billion
• Motorola stock annual gains of 21.3 percent

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Resources

• Is the investment worth it?
• General Electric
• Launched Six Sigma in 1995
• Operating margins above 15 percent
• Estimated savings of over 15 Billion
• City of Fort Wayne, Indiana
• Reduced city lighting inventory by 50 (500,000
  savings)
• Reduced pothole response from 5 days to 3 hours

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How to Deploy LSS with Baldrige

• Map processes related to all MB categories
• Manage using process thinking
• Establish a culture of improvement
• Encourage suggestions from employees and
  customers
• Listen to those who run the process
• Assign a quality manager (part or full time)
• Train in basics of LSS culture of improvement

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Process Mapping

• Before we can manage processes, we must identify,
  define, and centralize them
• Provides a clear, visual way to examine processes
  
• Helps identify redundancies, waste, and
  weaknesses
• Assists in managing across functions

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Why Map Processes?
The way you think it is.
What the customer expects, and is willing to pay
for.
The way it really functions.
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Mapping Tips

• Keep it simple but include all necessary detail
• Start every task with an action verb
• Ensure every decision leads to yes and no
  outputs
• Use only the simplest standard flowcharting
  symbols
• Walk the lineverify the process

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How to Deploy LSS with Baldrige

• Identify biggest problem (Pain)Link to Strategic
  Initiatives
• Run LSS project--focus on solving that issue
  (outside facilitator to help)
• Tell the success story
• Provide In-depth LSS training for a few employees
• Pick next two projects...etc.

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Timeline

• Plan on two years to implement a program
• Culture must change
• Training and understanding takes time
• Resources are limited
• Projects take between 2-6 months

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Timeline
First Year
Decision -Write Guidelines
Select First Project
Complete Project
Start Next Project
Tell Success
Establish Steering Group
Select and Train
Tell Success
Select and Train
Review
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Timeline
Second Year
Select Org Lead
Select Next Projects
Complete Project
Start Next Projects
Tell Success
Strengthen Steering Group
Select and Train
Tell Success
Select and Train
Review
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Pitfalls and Suggestions

• Identify maturity level
• Link process improvement to strategic plan and
  establish criteria for success
• Allocate appropriate resources
• Provide appropriate training
• Be reasonable about expectations
• Coordinate throughout your organization
• Tell the successes
• Reward success
• Be patient

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Summary

• Lean Six SigmaProcess improvement methodology to
  reduce waste and variation
• Extensive training requirements
• Requires resources and time
• Avoid pitfalls and plan for the long term

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Challenge

• We are what we repeatedly do. Excellence,
  therefore, is not an act but a habit.
• -- Aristotle

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Additional Resources

• www.lean.org
• Lean Certification Body of KnowledgeDefense
  Acquisition University
• www.acc.dau.mil
• www.asq.org American Society for Quality
• Northwestern Wisconsin Manufacturing Outreach
  program
• www.uwstout.edu/outreach/conf/lcp/index.htm

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Questions
Leon Spackman PMC Solutions lspackman_at_pmcsolutions
.com [phone] (Work) [phone]
(Cell) www.pmcsolutions.com www.inprocess.com