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Lean vs.

Six Sigma

Learning Objectives

1. Understand DMAIC and Lean Methodologies. 2. What are the differences between Six Sigma and Lean?

3. What are the tools used for Six Sigma and Lean?
4. Where are Six Sigma and Lean Methodologies used?

Lean vs. Six Sigma 2 .PPT

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Six Sigma Basic Premise

Outputs (CTQ)

Inputs

Do you know what is important to customers? Do you know what Xs are important to meet customer needs? How do the Xs drive outcomes, revenue, and cost?

Lean vs. Six Sigma 3 .PPT

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Six Sigma DMAIC Methodology


Define
Develop Project Charter Determine Customers & CTQs Map High-Level Process Establish and Measure Ys Plan for Data Collection Validate Measurement System Measure Baseline Sigma Identify Possible Xs Test Hypotheses List Vital Few Xs

Measure

Analyze

Improve

Select the Solution Design Solution, Controls, and Design for Culture Prove Effectiveness

Control

Identify Control Subjects Develop Feedback Loops Develop Process Control Plan to Hold the Gains Implement, Replicate

Lean vs. Six Sigma 4 .PPT

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Six Sigma Methodology Practical Problem Statistical Problem Define


Process Characterization

Measure

Y
Analyze Improve

Process Optimization

Statistical Solution

Practical Solution

Xs
Control

Goal: Y = f ( x )
Lean vs. Six Sigma 5 .PPT All Rights Reserved, Juran Institute, Inc.

Sources of Variation

Poor Design
Changing Needs Measurement System Insufficient Process Capability Skills & Behaviors

x
Lean vs. Six Sigma 6 .PPT All Rights Reserved, Juran Institute, Inc.

Lean Methodology
Define Value Measure Value Analyze Process - Flow
Define Stakeholder Value and CTQs Define Customer Demand Map High-level Process Assess for 6S Implementation Measure Customer Demand Plan for Data Collection Validate Measurement System Create a Value Stream Attribute Map Determine Pace, Takt-time and Manpower Identify Replenishment and Capacity Constraints Implement S1-S3 Analyze the Value Stream Attribute Map Analyze the Process Load and Capacity Perform VA/NA Decomposition Analysis Apply Lean Problem Solving to Solve for Special Causes

Improve Process - Pull Control Process

Conduct the Rapid Improvement Event Design the Process Changes and Flow Feed, Balance, Load the Process Standardize Work Tasks Implement New Processes Stabilize and Refine Value Stream Complete Process and Visual Controls Identify Mistake-proofing Opportunities Implement S4-S6 Control Plan, Monitor Results, and Closeout Project
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Lean vs. Six Sigma 7 .PPT

Why Define a Process as a Value Stream?

A Value Stream
Focuses attention on what is important for the customer. Identifies all the necessary components to bring a product or service from conception to commercialization. Identifies waste inherent in processes and works to remove it. Reduces defects in products and deficiencies in processes. Focuses on improving specs and cost.

Lean vs. Six Sigma 8 .PPT

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What Is Typically Found Lean Value Stream Management starts with defining value in terms of products and process capabilities to provide the customer with what they need at the right time and at an appropriate price.

Non-value added/waste Value added

Lean vs. Six Sigma 9 .PPT

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The Eight Wastes


adapted from Taiichi Ohno

1. Overproductionmaking or doing more than is required or earlier than needed. 2. Waitingfor information, materials, people, maintenance, etc. 3. Transportmoving people or goods around or between sites. 4. Poor process designtoo many/too few steps, nonstandardization, inspection rather than prevention, etc. 5. Inventoryraw materials, work-in-progress, finished goods, papers, electronic files, etc. 6. Motioninefficient layouts or poor ergonomics at workstations or in offices. 7. Defectserrors, scrap, rework, non-conformance. 8. Underutilized personnel resources and creativityideas that are not listened to, skills that are not utilized.
Lean vs. Six Sigma 10 .PPT All Rights Reserved, Juran Institute, Inc.

History of Lean

US war production
Large quantities Rapid pace High training

TPS
Toyota Ohno and Just-in-Time Shingo Schonberger Flow of work Japanese Small batch Womack Mach. Mfg sizes Changed World Techniques New philosophy Eliminate Waste Takes TPS Added to 6s tool and imports Improve performance kit to US Flexibility

JIT

Lean

Lean 6s

1940

1952

1964

1980

1990

2000

2008

Lean vs. Six Sigma 11 .PPT

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The Methods

Methods

Results
Improve Speed
Higher Quality Lower Costs

Lean & Six Sigma

Sustain Performance
Culture Change

Achieve Breakthrough

Dashboard Results

Lean vs. Six Sigma 12 .PPT

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How to Think About Improvement


The Juran Trilogy
Plan
DFSS

Control

Improve

RCCA Lessons Learned


Sporadic Spike

Lean Six Sigma

Breakthrough

Chronic Waste

Six Sigma & Beyond


Time

COPQ
Accelerated Change Management Support
Lean vs. Six Sigma 13 .PPT All Rights Reserved, Juran Institute, Inc.

Matching Improvement Process to Need

Small Gains or Clear Solution

Medium Gains

Large Gains

Launch New Product, Service, or Process

Change Management

Plan, Do, Study, Act (PDSA)

Lean & Six Sigma DMAIC

Design for Lean Six Sigma

Lean vs. Six Sigma 14 .PPT

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Lean and Six Sigma


Analyze ProcessFlow Improve ProcessPull

Define Value

Measure Value

Control Process

LEAN = Improvement principles focused on


dramatically improving process speed and eliminating the eight deadly wastes.

Define

Measure

Analyze

Improve

Control

SIX SIGMA = Breakthrough Process, Design, or


Improvement Teams focused on eliminating chronic problems and reducing variation in processes.
Lean vs. Six Sigma 15 .PPT All Rights Reserved, Juran Institute, Inc.

Lean Project Attributes

Simply stated: Lean is about moving the Mean. It focuses on efficiency.


Lean reduces average cycle time. Lean reduces excess inventory. Lean improves average response time.

Improvement
Lean vs. Six Sigma 16 .PPT All Rights Reserved, Juran Institute, Inc.

Six Sigma Attributes

Simply stated: Six Sigma is about Reducing Variation. It focuses on Effectiveness. The mean will most likely also be improved. Decrease defect rate Increase Process Yield

Improvement
Lean vs. Six Sigma 17 .PPT All Rights Reserved, Juran Institute, Inc.

Lean and Six Sigma Lean = Rapid Improvement Teams focused on dramatically improving
process speed, and the elimination of the eight deadly wastes.

Define Value

Measure Value

Analyze ProcessFlow

Improve ProcessPull

Control Process

IMPROVED EFFICIENCY

Six Sigma = Breakthrough Process Improvement Teams focused on


eliminating chronic problems and reducing variation in processes.

Define

Measure

Analyze

Improve

Control

IMPROVED EFFECTIVENESS

Lean vs. Six Sigma 18 .PPT

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Lean Six Sigma

Lean Six Sigma is an approach to integrating the power of Six Sigma Tools and Lean Enterprise Tools which can be applied within an organization to create the fastest rate of improvement, maximize shareholder value, and increase customer delight.

Define Value

Measure Value

Analyze ProcessFlow

Improve ProcessPull

Control Process

Define

Measure

Analyze

Improve

Control

Lean vs. Six Sigma 19 .PPT

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Which Technique to Begin With?

It is often advantageous to begin with Lean projects. These are easier to understand and implement. Begin with streamlining processes and Rapid Improvement Events. This gets the operation in good order. Chronic problems are now easier to deal with. Low Hanging Fruit is eaten. Next, select Six Sigma projects Other Reasons to Begin Lean?

Lean vs. Six Sigma 20 .PPT

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Lean Projects

Use Lean when you are trying to streamline any process and reduce process waste.

Improve assembly line throughput


Reduction in Finished Goods Inventory Reduce the time to process new proposals Reduce machine setup time Improve order processing time

Lean vs. Six Sigma 21 .PPT

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Six Sigma Projects

Use Six Sigma where process metrics are more difficult to collect or understand, and project success requires analysis of multiple input factors (Xs). These are often chronic problems. Improve yield on a continuously running machine Reduce defects on a machine with multiple inputs and machine settings Reduce the amount of wait time for a call center Improve the number of quality new hires

Lean vs. Six Sigma 22 .PPT

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Mixed Projects

What happens when you start a Six Sigma Project and it turns into a Lean project?

It is all about the correct tools.


Use the Lean tools for project success.

What happens if a Lean project turns into Six Sigma?


Depending when this is discovered, it may mean going back to utilize some Six Sigma tools before proceeding.

Lean vs. Six Sigma 23 .PPT

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