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Operations Overview: Lean Six Sigma Green Belt Insights

Understand the principles of Operations Management, Lean, Six Sigma, and Green Belt, including Demand Characteristics, Operations Goals, Decision Areas, and Lean and Six Sigma methodologies.

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Operations Overview: Lean Six Sigma Green Belt Insights

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  1. Operations Overview Lean Six Sigma Green Belt

  2. Overview: Demand Characteristics • What is Ops? • Managing resources efficiently/effectively to create products/services to meet demand. • Demand Characteristics • Volume – repeatability – affects standardization • Variety – range of products – affects inputs, setup cost • Variation – predictability – affects inventory, lead time • Visibility – customer contact – needs interpersonal skills

  3. Operations Goals • Quality – Meet specs, Low variation • Speed – Lead times for order taking, delivery • Dependability – Keep promises, keep them informed • Flexibility – Customization, ability to change midstream • Cost - minimization

  4. Operations Decision Areas • Capacity Planning • Match capacity to demand • Supply Networks • Vertical integration – how much to own? How many suppliers? Types of Relationships • Process Technology • Converting resources to product/service efficiently • Organization/Process Improvement • Reporting structure, LSS, Change Management

  5. Operations Strategy Matrix Assignment: How does your organization manage the four decision areas to achieve its operational objectives?

  6. Introduction to Lean • Toyota Motor Corp. • Elimination of waste • Smooth flow • Quick Implementation • 5S Philosophy • Seiri- Sort/Separate – Get rid of the unnecessary • Seiton - Straighten – Put things where most needed • Seiso - Sweep/Shine – Clean, paint • Seiketsu – Standardize – Create agreed upon procedures • Shitsuke – Sustain – Discipline – Make it a habit Practice being this, not just doing it once. https://www.pinterest.com/pin/423971752400603921/

  7. Introduction to Six Sigma Started by Motorola, GE • Improve Quality • Data/Analysis focus • Reduction of variation • Ideal: Six standard deviations (Sigmas) on either side of mean must fit within the customer specs. • Can take a few months to implement

  8. Standard Deviation (Sigma) Exercise 1

  9. Standard Deviation (Sigma) Exercise 2

  10. Interpretation • What do the two sigma values we computed tell us about the respective datasets?

  11. Excel Exercise in Computing Sigma • See dataset provided.

  12. Interpretation • How many data points fall within +/- One Sigma from the Mean? • How many fall within • +/- 2 sigma? • +/- 3 sigma? • …. • +/- 6 sigma?

  13. What is 6 sigma Quality? • Roughly 3.4 defects per million opportunities.

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