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Title: Continual Improvement Methods with Six Sigma, Lean, and Lean Six Sigma Lakshmi Chava Swetha Munagala Stephen Rich Author: ammulu Created Date – PowerPoint PPT presentation

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Title: Continual Improvement Methods with Six Sigma, Lean, and Lean Six Sigma


1
Continual
Improvement Methods with Six Sigma, Lean, and
Lean Six Sigma
  • Lakshmi Chava
  • Swetha Munagala
  • Stephen Rich

2
Major 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

3
Continual 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.

4
Rationale for Continual Improvement
  • Continual Improvement is fundamental to success
    in the global market place.
  • Customer needs are not static they change
    continually.

5
Managements 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.

7
Essential Improvement Activities
  • Maintain Communication.
  • Correct obvious problems.
  • Look upstream.
  • Document problems and progress.
  • Monitor changes.

8
Customers Needs Change Continually
  • Quality improvement is needed for both kinds of
    quality product features and freedom from
    deficiencies.

9
Improvement 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.

10
Improvement 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.

11
Structure 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.

12
Contd
  • Establish the necessary infrastructure.

13
The Scientific Approach
  • Collect Meaningful Data.
  • Identify Root Causes of problems.
  • Develop Appropriate Solutions.
  • Plan and Make Changes.

14
Collecting 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

15
Identify 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.

16
Develop Appropriate Solutions
  • Collect the relevant data
  • Make sure they are accurate
  • Identify root causes
  • Develop a solution that is appropriate

17
Plan 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

18
Importance of Statistical Thinking
  • Statistical thinking is critical to improvement
    of a system. Only by use of properly interpreted
    data can intelligent decisions be made.

19
Improvement 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

20
Identification of Improvement Needs
  • Apply multi voting
  • Identify customer needs
  • Study the use of time
  • Localize problems

21
Development of improvement plans
  • Understand the process
  • Eliminate errors
  • Remove slack
  • Reduce variation
  • Plan for continual improvement

22
Common 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

23
Standardize 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

25
Improve 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

26
Total 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

29
Kaizen approach
  • Kaizen value system
  • Role of executive management
  • Role of middle managers
  • Role of supervisors
  • Role of employees
  • Kaizen and quality

30
Elements of kaizen
  • Customer focus
  • Teamwork
  • Just-in-time
  • Quality circles
  • Automation
  • Labor/ management cooperation
  • Total productive maintenance

31
Kaizen 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.

32
The five Ws and One H
  • WHO
  • WHAT
  • WHERE
    HOW
  • WHEN
  • WHY

33
Five M checklist
  • Measurement
  • Methods
  • Material
  • Machine
  • Man

34
Activity
35
Goldratts 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.

36
What Is So Different?
  • Does not apply the traditional system for
    measuring results (profits)
  • Uses throughput, inventory, and operating expense.

37
Whats 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.

38
Goldratt Defines Restraint
  • anything that limits an organization from
    achieving higher performance vis-à-vis (in
    comparison with) its goal.

39
How Is It Applied?
  • Identify any factor that tends to constrain.
  • Exploit how can the factor be turned into
    positive factors, eliminated, or circumvented.

40
CEDAC 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)

41
CEDAC Diagram
http//syque.com/improvement/Cause-Effect20Diagra
m.htm
42
10-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

43
Six 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.

44
Six Step Protocol
  1. Identify the product characteristics wanted by
    customers.
  2. Classify the characteristics in terms of their
    criticality.
  3. Determine is the classified characteristics are
    controlled by part and/or process.

45
Protocol
  • 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.

46
Six 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).

47
What 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.

48
Six 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.

49
Lean 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.

50
Purpose of Adopting
  • To produce better products or deliver better
    services using less resources.
  • Doing more with less and doing it better.

51
Defining 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.

52
Definition
  • 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.

53
Lean Focuses on Waste
  • Overproduction Waste
  • Inventory Waste
  • Motion Waste
  • Transportation Waste
  • Over-processing Waste
  • Defects Waste
  • Waiting Waste
  • Underutilization Waste

54
Tools 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

55
More 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

56
Lean Six Sigma
  • Combining Lean and Six Sigma
  • Key Concepts
  • Green Belts
  • Black Belts
  • Master Black Belts
  • Champions
  • DMAIC Roadmap (or lean Six Sigma)

57
Where 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

58
Where 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

59
DMAIC 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.

60
Define
  • 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

61
Measure
  • 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

62
Analyze
  • 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)

63
Improve
  • 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

64
Control
  • 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

65
Bibliography
  • All information obtained from
  • Goetsch, D.L., Davis, S.B. Quality Management for
    organizational excellence introduction to total
    quality. 2006. 5th edition

66
Why Do We Ned Six Sigma?
  • Interview
  • http//www.youtube.com/watch?v7rUQbTsc_ms
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