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4/23/2007 1
Lean Six Sigma (LSS)
April 2007
2
Agenda
Background of Lean Six Sigma (LSS) Brief Tutorial of LSS LSS Program Status
3
Lean Six Sigma Program
66σσ
4
LSS Background
• New Director – 2005• Used Lean Six Sigma on previous assignments• Investigate use of LSS for process improvement
5
Approach for FY06 Program
Option 1:Cultural Paradigm Shift-Entire Organization
Option 2:Targeted Organizations, Processes, &
ProjectsIAD SID ADET
DIRNSA
IAD SID ADET
DIRNSA
6
LSS Project StructureTop Leaders
Champion #1 Champion #3Champion #2
Team Lead Team LeadTeam Lead
Blackbelt BlackbeltBlackbelt
Team members/Greenbelts Team members/ GreenbeltsTeam members/Greenbelts
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What is Lean Six Sigma??
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Structured methodology Customer focusedData collection and analysis Proven tools and techniques
Producing: •Reduced cycle time•Optimized resources •Elimination of waste
Simply Put:Lean Six Sigma is a Business Model
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Business Model Evolution
Time
Org
aniz
atio
nal &
Pro
c ess
Mat
urity
TQM – establish culture of process improvement; Learn basis process tools.
ISO 9000– Define & document processes (they don’t have to be good processes… just defined & documented)
CMMI – Determine if the defined processes are the right processes. Compare processes to CMMI business model.Define the missing processes. USE EXISTING CMMI PROGRAM
Lean Six Sigma – Carefully select critical,processes to target for improvement using Lean Six Sigma techniques
-Malcolm Baldridge-Business Process Re-
engineering
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PAST EFFORTS•Not mission driven•Leadership not involved•Customers’ needs not known•Projects focused internally•Teams not focusing on Mission critical problems•Training focused on team building•Seen as “Flavor of the month”
LEAN SIX SIGMA•Leadership selects goals & projects•Leadership is involved & committed•Customer focused: Projects driven from customer needs•Training is analytical & process driven•Decisions are data driven•Statistical software available for number crunching•Build on lessons learned from previous efforts
What’s different this time?
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Lean & Six Sigma TenetsLean
Waste reductionValue streamInternally focusSpeed based analysisOperational metricsSpecialists: Lean MastersContinuous Improvement
Six SigmaVariability reductionCustomer focused Project basedProject metricsSpecialists: Greenbelts, Blackbelts (BB), Master BBBreakthrough improvement
Efficiency
Effectiveness
Combining Lean and Six Sigma optimizes focus on both the process and on the customer.
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Affinity DiagramsCause & Effect DiagramsCharter Control ChartsCritical to Quality Tree (CTQ)Design of Experiments (DOE)FMEAFrequency PlotsGage R&RGantt Charts
Goal TreesPareto ChartsPrioritization MatrixProcess CapabilityRegression SamplingRolled Throughput YieldRun ChartsScatter PlotsSIPOCVoice of the customer
Lean Six Sigma Tools
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Lean Six Sigma –2 Key Points to Remember
1. Lean Six Sigma Model: 5 step process called DMAIC :
Define, Measure, Analyze, Improve, Control
2. Six Sigma Measurement: Your process is so good that errors only occur 3.4 times for every million opportunities
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Charter the Charter the projectproject
Develop the
Charter
Develop the
ProjectPlan
DrawHigh-Level
ProcessMap
DataCollection –Voice of theCustomer
VOC
DataCollection –Performance
Data
Set TargetsAnd
SpecificLimits
CalculateProcess Sigma Level
Analyze Dataand
Process
GenerateHypotheses
AboutCauses
VerifyKey RootCauses
GenerateSolutions
Measure theMeasure theproblem and problem and understand understand requirementsrequirements
AAnalyze IImprove CControlIdentify rootIdentify rootcauses andcauses and
solutionsolutionalternativesalternatives
Identify solutionIdentify solutionalternatives; alternatives;
plan and implementplan and implementsolutionssolutions
Validate results,Validate results,refine solutionrefine solution
and transition toand transition toProcess ownerProcess owner
SelectImprovement
Solution
TestSolution
DevelopPilotPlan
ImplementPilot andAnalyzeResults
CompleteImplemen-
tation
ImplementProcess
Management
Monitorand
ControlProcess
1. DMAIC:1. DMAIC: Foundation of LSS ModelDDefine MMeasure
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2. Sigma Concept
4 sigma:No hot water for 54
hours/year20,000 lost articles of mail
/ hourUnsafe drinking water for
15 minutes / day2 too short or too long
landings at major airports / DAY
5,000 incorrect surgical operations / week
200,000 incorrectly filled prescriptions / year
6 sigma:No hot water for 2
minutes/year7 lost articles of mail / hourUnsafe drinking water for
one-half second / day0.011 too short or too long
landings / day; or 4 too short/long landings per YEAR
3 incorrect surgical operations/ week
68 incorrectly filled Rx’s / year
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.
10 15 20 25 30 35 45 55Y= Y=+-
99.99966%
50%
84%
98%
VALUES (time):
Sigma Example
40
99.9%
50
=2.5σ
=3.5σ
=4.5σ
= 6σ
69% =1.0σ
Drive time to work
Nu
mbe
r of
tri
ps
25 minutes isAvg. time to work
5
500
Ask: How much time do I need to allow to be 50% certain of getting to work, 98% certain, 99.999666% certain?
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Why do Lean Six Sigma?
• Structured approach•….to solving problems
• Customer focused•…find out what is critical to them
• Reduce cycle time•….time, money, manpower, redundancy
• Use facts and data•…to make decisions
• Reduce variation•…to ensure a consistent, dependable service & product
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Lean Six Sigma Program Status
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Identified cycle timecycle time is the main issueTeams were surprised at ‘‘voice of voice of customercustomer’’Data analysisData analysis was eye-opening Significant behavior changesbehavior changesCapitalized on ““low hanging fruitlow hanging fruit””opportunities Identified critical spinspin--off projectsoff projectsInteraction & synergy synergy among the teams
““AhaAha’’ss!!”” from first LSS teams
20
LSS Training
“Greenbelt” - team leaders & members, 5 days“Champion” – team champions, 1 day“WhitebeltWhitebelt” – all government personnel – 2 hours, on line