Title: Continual Improvement Methods with Six Sigma, Lean, and Lean Six Sigma
1Continual
Improvement Methods with Six Sigma, Lean, and
Lean Six Sigma
- Lakshmi Chava
- Swetha Munagala
- Stephen Rich
2Major Topics
- Rationale for Continual Improvement
- Managements Role in Continual Improvement
- Essential Improvement Activities
- Structure for Quality Improvement
- The Scientific Approach
- Identification of Improvement Needs
- Development of Improvement Plans
- Common Improvement Strategies
- Additional Improvement Strategies
- The Kaizen Approach
- Goldratts Theory of Constraints
- The CEDAC Approach
- Six Sigma Concept
- Lean Operations
- Lean Six Sigma
3Continual Improvement
- One of the most fundamental elements of total
quality. - This concept applies to processes and the people
who are operating them as well as to the products
resulting from the processes.
4Rationale for Continual Improvement
- Continual Improvement is fundamental to success
in the global market place. - Customer needs are not static they change
continually.
5Managements Role in Continual Improvement
- In his book Juran on Leadership for Quality,
Joseph Juran writes - The picture of a company reaping big rewards
through quality improvement is incomplete unless
it includes some realities that have been
unwelcome to most upper managers. Chief among
these realities is the fact that the upper
managers must participate personally and
extensively in the effort. It is not enough to
establish policies, create awareness, and then
leave all else to subordinates. That has been
tried, over and over again, with disappointing
results.
6 Contd
- Management should play necessary role in
continual improvement by doing the following - Establishing an organization-wide quality
council. - Working with the quality council.
- Providing the necessary moral and physical
support. - Scheduling periodic progress reviews.
- Building continual quality improvement in to the
regular reward system.
7Essential Improvement Activities
- Maintain Communication.
- Correct obvious problems.
- Look upstream.
- Document problems and progress.
- Monitor changes.
8Customers Needs Change Continually
-
- Quality improvement is needed for both kinds of
quality product features and freedom from
deficiencies.
9Improvement Must Be Continual
- Improve constantly and forever the system of
production and service. Improvement is not a
one-time effort. Management is obligated to
continually look for ways to reduce waste and
improve quality.
10Improvement Is Not Putting Out Fires
- Putting out fires is not improvement. Finding a
point out of control, finding the special cause
and removing it is only putting the process back
to where it was in the first place. It is not
improvement of process.
11Structure for Quality Improvement
- Establishing a quality council.
- Develop a statement of responsibilities.
- Formulating policy as it relates to quality.
- Setting the benchmarks and dimensions.
- Establishing the team and project selection
processes. - Providing the necessary resources.
- Implementing the project.
- Establishing quality measures for monitoring
progress and undertaking monitoring efforts. - Implementing appropriate reward and recognition
program.
12Contd
- Establish the necessary infrastructure.
13The Scientific Approach
- Collect Meaningful Data.
- Identify Root Causes of problems.
- Develop Appropriate Solutions.
- Plan and Make Changes.
-
14Collecting Meaningful Data
- Before collecting meaningful data, decide exactly
- What data are needed
- How they can be best collected
- Where the data exists
- How they will be measured
- How you will know the data are accurate
15Identify Root Causes of Problems
- Too many resources are wasted by organizations
attempting to solve symptoms rather than
problems. Total quality tools will help in
separating problems from causes.
16Develop Appropriate Solutions
- Collect the relevant data
- Make sure they are accurate
- Identify root causes
- Develop a solution that is appropriate
17Plan and Make Changes
- Look a head
- Anticipate needs
- What resources will be used to satisfy them and
- Anticipate problems and consider how they should
be handled
18Importance of Statistical Thinking
- Statistical thinking is critical to improvement
of a system. Only by use of properly interpreted
data can intelligent decisions be made.
19Improvement Can Be Measured
- Improvement can be measured and monitored by
using performance indicators. Some of the
examples are listed below - Number of errors or defects
- Number of or level of need for repetitions of
work tasks - Efficiency indicators
- Number of delays
- Duration of a given procedure or activity
- Response time or cycle
- Useability/cost ratio
- Amount of overtime required
- Changes in work load
- Vulnerability of the system
- Level of criticalness
- Level of standardization
- Number of unfinished documents
20Identification of Improvement Needs
- Apply multi voting
- Identify customer needs
- Study the use of time
- Localize problems
21Development of improvement plans
- Understand the process
- Eliminate errors
- Remove slack
- Reduce variation
- Plan for continual improvement
22Common improvement strategies
- Establish boundaries for the process
- Flowchart the process
- Make a diagram of how the work flows
- Verify your work
- Correct immediately any obvious problems
identified
23Standardize the process
- Identify the currently known best practices and
write them down - Test the best practices to determine whether they
are in fact the best, and improve them if there
is room for improvement - Make sure that everyone is using the newly
standardized process - Keep records of process performance, update them
continually, and use to identify ways to improve
the process even further on a continual basis
24- Eliminate errors in the process
- Streamline the process
- Reduce sources of variation
- Bring the process under statistical control
25Improve the design of the process
- Define the objectives of the experiment
- Decide which factors are going to be measured
- Design an experiment that will measure the
critical factors and the answers the relevant
questions - Set up the experiment
- Conduct the experiment
- Analyze the results
- Act on the results
26Total manufacturing management
- Reduced lead time
- Flow production
- Group technology
- Level production
- Synchronized production
- Overlapped/parallel production
- Flexible schedules
- Pull control
27- Visual control
- Stockless production
- Jidoka
- Reduced setup time
- In-process control
- Quality improvement
- Total cost cycles
- Cost curves
28- Mushroom concept
- Suppliers as comakers
- Total industrial engineering
- Total productive maintenance
29Kaizen approach
- Kaizen value system
- Role of executive management
- Role of middle managers
- Role of supervisors
- Role of employees
- Kaizen and quality
30Elements of kaizen
- Customer focus
- Teamwork
- Just-in-time
- Quality circles
- Automation
- Labor/ management cooperation
- Total productive maintenance
31Kaizen Five-step plan
- Straighten up involves separating necessary from
unnecessary - Put things in order tools and materials in
proper place and in order - Clean up keeping clean to proceed in efficient
manner - Personal cleanliness employees being neat to
appear better - Discipline careful adherence to standardized
work procedures.
32The five Ws and One H
- WHO
- WHAT
- WHERE
HOW - WHEN
- WHY
33Five M checklist
- Measurement
- Methods
- Material
- Machine
- Man
34Activity
35Goldratts Theory of Constraints
- An approach to managing that helps organizations
continually improve. - It is an intuitive (instinctive) framework for
managing organizations. - Starts with
- 1. clearly defined goals for the organization.
- 2. establishing measurements to determine the
impact of any action on those goals.
36What Is So Different?
- Does not apply the traditional system for
measuring results (profits) - Uses throughput, inventory, and operating expense.
37Whats Different?
- It is based on the assumption that every
organization faces constraints. - Greatest negative impact on performance is
policies as opposed to materials and resources.
38Goldratt Defines Restraint
- anything that limits an organization from
achieving higher performance vis-à-vis (in
comparison with) its goal.
39How Is It Applied?
- Identify any factor that tends to constrain.
- Exploit how can the factor be turned into
positive factors, eliminated, or circumvented.
40CEDAC Approach
- CEDAC cause-and-effect with additional cards.
- 3 conditions must exist for continual improvement
to occur. - A reliable system (standardized and reliable)
- A favorable environment (favorable to
improvement) - Practicing as teams (Total Quality is performed
by teams. Teams must practice)
41CEDAC Diagram
http//syque.com/improvement/Cause-Effect20Diagra
m.htm
4210-Step Process of Implimentation
- Draw Basic Diagram
- Select the focus of improvement efforts
- Name project leader
- Establish measurement method
- Establish improvement goal and date
- Format effect side of the diagram
- Collect fact cards for the cause side (each team
member fills out cards with their ideas) - Collect improvement cards
- Implement and test ideas
- Select cards for standardization
43Six Sigma Concept
- http//www.youtube.com/watch?vLNtEW4DVRkEfeature
related - Introduced by Motorola in the mid-1980s
- Purpose to improve the performance process to
where defects rate was 3.4 per million or less. - Designed for high volume production settings.
44Six Step Protocol
- Identify the product characteristics wanted by
customers. - Classify the characteristics in terms of their
criticality. - Determine is the classified characteristics are
controlled by part and/or process.
45Protocol
- 4. Determine the maximum allowable tolerance for
each classified characteristic. - 5. Determine the process variation for each
classified characteristic. - 6. Change the design of the product, process, or
both to achieve Six Sigma performance.
46Six Sigma The Name
- From the concept of standard deviation signified
by lowercase Greek letter sigma s - Processes and outputs typically measure in their
standard deviations from the mean (ideal point).
47What Does That Mean?
- Most good companies operate between 3 and 4
sigma. - Or 99.73 of process output will fall between
- 3 standard deviation at 3 sigma or 99.9937 at
4 sigma. - 3 sigma operation will yield 2700 defective parts
for every 1 million produced.
48Six Sigma and Total Quality
- Six Sigma is an extension of Total Quality.
- Six Sigma is a total quality strategy, like all
others, to achieve superior performance, that is
continually improved, forever. - Six Sigma is achieved by improving process
performance.
49Lean Operations
- LeanLean ManufacturingLean Operations
- Lean originally a manufacturing concept thus
lean manufacturing. - Lean Operations because it is found to produce
good results in both manufacturing AND service
sectors.
50Purpose of Adopting
- To produce better products or deliver better
services using less resources. - Doing more with less and doing it better.
51Defining Lean
- Based on the Toyota Production System (TPS).
- Lean Operation a better product is developed or
a better service is delivered by using less of
everything required.
52Definition
- Lean is being flexible enough to get the right
things, to the right place, at the right time, in
the right amounts. - The Heart reduction of waste and the improvement
of workflow.
53Lean Focuses on Waste
- Overproduction Waste
- Inventory Waste
- Motion Waste
- Transportation Waste
- Over-processing Waste
- Defects Waste
- Waiting Waste
- Underutilization Waste
54Tools and Techniques of Lean
- Five-S workplace organization
- Visual workplace systems
- Layout
- Standardized work (SW)
- Point of usage storage (POUS)
- Batch size reduction
- Quick changeover(QCO)
- Poka-yoke
55More Tools
- Self-inspection
- Autonomation
- Pull systems/kanban
- Cellular and flow
- Just-in-time (JIT)
- Total productive maintenance (TPM)
- Value stream mapping (VSM)
- Change management
- Teamwork
56Lean Six Sigma
- Combining Lean and Six Sigma
- Key Concepts
- Green Belts
- Black Belts
- Master Black Belts
- Champions
- DMAIC Roadmap (or lean Six Sigma)
57Where to Use? In Manufacturing
- Especially effective for the following types of
continual improvement projects - Accuracy in invoicing
- Capacity of line and product
- Lead time on delivery
- Production
- Replenish downtime on equipment and lines
58Where to Use? In Service Sector
- Accuracy in invoicing, delivery, and product
- Capacity of service area, call center, and
product - Lead time on delivery and call hold time
- Downtime on equipment, servers, and lines
59DMAIC Roadmap
- The Nucleus of Six Sigma Define, Measure,
Analyze, Improve, and Control. - Five Phases are constant
- Steps, tools and outputs of each phase may vary
somewhat.
60Define
- 1. initiate the project
- 2. Define the process
- 3. Determine Customer requirements
- 4. define key process output variables
- Possible tools value stream maps, affinity
diagrams, brainstorming, surveys
61Measure
- 1. Understand the process
- 2. Evaluate risks on process inputs
- 3. Develop and evaluate measurements systems
- 4. measure current performance
- Results Knowing your starting point,
verification of measurement systems, current
capabilities
62Analyze
- 1. Analyze data to prioritize key input variables
- 2. Identify waste
- Results root causes reduced. Prioritize
potential key inputs, and list specific wastes. - Tools Five-S (sort, store, shine, standardize,
sustain)
63Improve
- 1. verify critical outputs
- 2. Design Improvements
- 3. Pilot the new process
- Results an action plan for improvement, future
state process maps, control maps, new process
design/documentation
64Control
- 1. Finalize the control system
- 2. Verify long-term capability
- Results a control system, improvement validated
for long term, identified continual improvement
opportunities, team recognition
65Bibliography
- All information obtained from
- Goetsch, D.L., Davis, S.B. Quality Management for
organizational excellence introduction to total
quality. 2006. 5th edition
66Why Do We Ned Six Sigma?
- Interview
- http//www.youtube.com/watch?v7rUQbTsc_ms