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INTRODUCTION TO
LEAN SIX SIGMA:
A Course Overview
J orge Luis Romeu, Ph.D.
Quanterion Solutions Inc.
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Defining Quality
Quality is in the eyes of the beholder
Fitness for use
Customer satisfaction and loyalty
Customer Focus/Customer Centered
Measuring Quality:
Service speed, accuracy, availability
Courtesy, information, follow-up ...
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Defining Quality:
Big Q versus Little Q
From the Old to the New Quality
The Cost of Poor Quality (COPQ)
Up-Front and Hidden Costs
Delight your Customers:
Improve Quality and Speed
Improve your Processes:
Decrease Variation, Defects and Time
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Two approaches to Quality
Little q
Traditional quality function:
Reactive, finding issues, manufacturing
Control Charts, Acceptance Sampling
Big Q
New approach to Quality:
Proactive, preventing, all services
Product as well as Process
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Two Dimensions of Q
Features
Affects income (sales)
Ease of use, appearance, price, etc.
Refers to Quality of Design
Freedom from Deficiencies
Affects service costs
Defects, failures, waste, etc.
Refers to Quality of Conformance
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Cost of Poor Quality (COPC)
Types: up-front and hidden costs
Difficult to notice and/or recognize
Service defects (unavailability)
Inefficient processes (slow)
Lost opportunities (sales/revenues)
Appraisal and Prevention costs
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Improvement Advantages
Quality Improvement pays!
Increases customer loyalty
Increases your reputation
Increases customer base
Reduces customer complaints
Reduces warranty costs
Reduces service time/costs
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Improve your Process Quality
Optimize Process Flow: Lean
Document how work gets done
Examine and improve work flow
Eliminate waste and non-value added
Minimize Variation: Six Sigma
Variation, variability and variance
Variation defines the Six Sigma level
Identify factors that increase variation
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Lean Manufacturing and Kaisen
Kaisen: Continuous Improvement
Achieved by reducing the three Evil Ms
Muda: waste or non-value added
process activities
Mura: inconsistent use of people
And of processes
Muri: excessive demands on people
And on processes
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Lean Manufactuging and the 5 Ss
The Five Kaisen Principles
Sort: keep only necessary things
Set in Order: arrange efficiently
Shine: maintain cleanliness/avoid clutter
Standardize: proceed consistently
Sustain: cooperative working environment
Use Team Effort to Succeed!
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The Eight Wastes
Overproduction: too much or too early
Waiting: for information, people, materials
Transportation: moving things around
Process Design: too many or too few steps
Inventory: work in progress, electronic files
Motion: poor layout and ergonomics
Defects: errors, scrap, rework, etc.
Under-utilization: of personnel or resources
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The Seven Basic Quality Tools
Flow Charts
Ishikawa Diagrams
Check lists
Pareto Charts
Histograms
Scatter Diagrams
Control Charts
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Some Uses of these Tools
Pareto Charts
Identify the Relevant Few Factors
Ishikawa Charts
Identify Factors Impacting Response
Affinity Diagrams
Groupings of Similar Ideas
Check Lists
Provide Order and Inclusion
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Example of Pareto Chart
O th e rs C ivil M a te ria ls
E E U nk n IE C he m M E Q & R
1 3 4 5 6 1 0 1 1 1 1 1 3
1 . 6 4 . 7 6 . 2 7 . 8 9 . 4 1 5 . 6 1 7 . 2 1 7 . 2 2 0 . 3
1 0 0 . 0 9 8 . 4 9 3 . 7 8 7 . 5 7 9 . 7 7 0 . 3 5 4 . 7 3 7 . 5 2 0 . 3
6 0
5 0
4 0
3 0
2 0
1 0
0
1 0 0
8 0
6 0
4 0
2 0
0
S p e c ia lty
C o un t
P e rc e n t
C um %
P e rc C o u n t
P a re to C h a rt fo r S p e c ia l
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Ishikawa or Fishbone Chart
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Control Chart for Number of Errors
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Value Stream and State Maps
Flowchart of process activities (map)
Include in each node, information on:
Average Time in Node
Up Time (percentage)
Delays and Queues
Activity Yield/Output
Manpower Required
Other Information
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Value-Added work
The contribution to item real value
Is in the eyes of your customer
Non-Value-Added work (waste)
Can be dismissed without loss
Main Goal of Lean (and Six Sigma)
Eliminate all possible waste
Identify waste in the process flow!
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SIPOC Charts for Key Activities
Supplier:
Who provides you with input?
Input:
What input is being provided?
Process:
What do you add to product?
Output:
What is such contribution result?
Customer:
Who do you pass the product to?
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Example of House of Quality
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Six Sigma Philosophy: DMAIC
1. Define: identify areas of variability
2. Measure: data collection
3. Analyze: relevant information
4. Improve: selected areas
5. Control: manage changes
Result: Sustained change.
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Assessing Process Capability
36 34 32 30 28 26 24
LSL USL
Process Data
Sample N 100
StDev(Within) 1.7824
StDev(Overall) 1.84826
LSL 24
Target *
USL 36
Sample Mean 29.9272
Potential (Within) Capability
CCpk 1.12
Overall Capability
Pp 1.08
PPL 1.07
PPU 1.10
Ppk
Cp
1.07
Cpm *
1.12
CPL 1.11
CPU 1.14
Cpk 1.11
Observed Performance
PPM < LSL 0.00
PPM > USL 0.00
PPM Total 0.00
Exp. Within Performance
PPM < LSL 441.45
PPM > USL 328.28
PPM Total 769.73
Exp. Overall Performance
PPM < LSL 670.86
PPM > USL 508.66
PPM Total 1179.53
Within
Overall
Improved Process Capability
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Combining Lean and Six Sigma
Lean: reduces waste; improves flow
Streamlines your operation to a new level
Six Sigma: reduces process variation
Optimizes your current operation
Lean alone: cuts process extra fat
Six Sigma: improves as is system
Their Combination: New and Improved!
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Implementing/Staffing Lean-Six Sigma
Champion: Executive sponsoring Lean
Process Owner: has a vested interest
Black Belt: technically trained in job
Master Black Belt: BB plus experience
Green/Yellow/White Belts: lower levels
Intermediate, introductory, awareness
Green Belts can lead small projects.
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Examples of Lean-Six Sigma
Lean:
Streamlining and organizing
Eliminating superfluous steps
Shortening the processing time
Six Sigma:
Identifying areas of variability
Reducing overall variability
Improving Process Capability
Combined: streamline and optimize!
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Bibliography
What is Lean-Six Sigma?
ASQ; George, Rowlands & Kasle (2004)
Quality Toolkit
RIAC; A. Coppola (2002)
Total Quality Management TQM Toolkit
RIAC; A. Coppola (1993)
A Guide for Implementing TQM
RIAC; Crosier (1990)