Lean Six Sigma 2 - Pan Learn

1. What is a Lean? Lean principles are derived from the Japanese manufacturing industry. It is the set of "tools" that assist in the identification and steady elimination of waste. As waste is eliminated quality improves while time and cost are reduced.  Lean implementation emphasizes the importance of optimizing workflow through strategic operational procedures while minimizing waste and being adaptable.  The cultural and managerial aspects of lean are arguably more important than the actual tools or methodologies itself. It aims to enhance productivity by simplifying the operational structure enough to understand, perform and manage the work environment.  www.panlearn.com

2. Why Lean? Maximize Customer Value While Minimizing Waste www.panlearn.com

3. Why Lean Six Sigma? Lean Six Sigma is a methodology that relies on a collaborative team effort to improve performance by systematically removing waste and reducing variation. It combines lean manufacturing/lean enterprise and Six Sigma to eliminate the wastes. It is a synergized managerial concept of Lean and Six Sigma. Lean traditionally focuses on the elimination of the eight kinds of waste classified as defects, over-production, waiting, non-utilized talent, transportation, inventory, motion and extra-processing. Six Sigma seeks to improve the quality of process outputs by identifying and removing the causes of defects (errors) and minimizing variability in (manufacturing and business) processes.  Lean six sigma not only reduces process defects and waste, but also provides a framework for overall organizational culture change www.panlearn.com

4. Purpose of a Lean Six Sigma Project Increase business-related productivity processes & Generate new markets Manage and deliver sustainable and measurable improvement in an organization. Generate better revenues and margins Enhance customer satisfaction & Achieve significant cost savings www.panlearn.com

5. Isn’t Lean 6σ Just For Manufacturing? No, Lean Six Sigma is good for ANY business. • Has been successful in industries such as banking, retail, software, and medical • Has been successful in improving processes throughout operations, sales, marketing, information technology, finance, customer services, and human resources Why? • Because every business suffers from the two key problems that Six Sigma can solve: defects and delay • Lean helps in significantly reducing wastes www.panlearn.com

6. Benefits of Lean Six Sigma Certification LEAN Help Your Organization Eliminate Errors Improve Business Processes & Sustain Quality Improvement Applicability Across Industries Nurtures Managerial & Leadership Ability Earning Excellent Salary and Perks www.panlearn.com

7. Six Sigma Tools • 5 Whys • Analysis of variance • ANOVA Gauge R&R • Axiomatic design • Business Process Mapping • Catapult exercise on variability • Cause & effects diagram (also known as fishbone or Ishikawa diagram) • Chi-square test of independence and fits • Control chart • Correlation • Cost-benefit analysis • CTQ tree • Quantitative marketing research through use of Enterprise Feedback Management (EFM) systems • Design of experiments • Failure mode and effects analysis(FMEA) • General linearmodel • Histograms • Homoscedasticity • Quality Function Deployment(QFD) • Paretochart • Pick chart • Processcapability • Regressionanalysis • Root causeanalysis • Runcharts • SIPOC analysis (Suppliers, Inputs, Process, Outputs,Customers) • Stratification • Taguchimethods • Taguchi LossFunction • TRIZ www.panlearn.com

8. 8 Wastes in Lean Lean thinking aims to remove wastes from work processes. Before diving into the 8 wastes, it is important to understand what waste is. Waste is any action or step in a process that does not add value to the customer. In other words, waste is any process that the customer does not want to pay for. The original seven wastes (Muda) was developed by Taiichi Ohno, the Chief Engineer at Toyota, as part of the Toyota Production System (TPS). The seven wastes are Talent, Inventory, Motion, Waiting, Overproduction, Over processing and Defects. They are often referred to by the acronym ‘TIMWOOD’. The 8th waste of non-utilized talent or ‘Skills’ of workers was later introduced in the 1990s when the Toyota Production System was adopted in the Western world. As a result, the 8 wastes are commonly referred to as ‘TIMWOODS’. www.panlearn.com

9. 8 Wastes of Lean Six Sigma www.panlearn.com

10. Lean Principles The five-step thought process for guiding the implementation of lean techniques is easy to remember, but not always easy to achieve: www.panlearn.com

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