Department of Defense Lean Six Sigma

Lean 6σ Department of DefenseLean Six Sigma Executive level overview

Lean 6σ There must be a better way! • Agenda: • Lean Six Sigma Overview • The foundation of LSS • Lean / Six Sigma / LSS • DMAIC

Terminal Learning Objective • Task: Apply DMAIC to a Simple Work Process • Condition: You are training to become an ACE with access to ICAM course handouts, readings, and spreadsheet tools and awareness of Operational Environment (OE)/Contemporary Operational Environment (COE) variables and actors • Standard: with at least 80% accuracy: • Describe the foundation of Lean and Six Sigma • Define the underlying theory of Six Sigma • Describe the principles of Lean Six Sigma • Explain the concepts of DMAIC

Lean 6σ Lean Six Sigma overview • Why Lean Six Sigma • Principles and Tools • Deputy Chief of Staff Army G-1 www.armyg1.army.mil/leansixsigma/whatislss.asp • Performance Excellence… A Lean Six Sigma World-Class Methodology • Where to Start…Voice of the Customer

Lean 6σ Foundation to Lean 6 Sigma • Definitions of Insanity: • Doing the same thing over and over and expecting a different outcome! • AND • Using the same logic to get out of the trouble that got you there in the first place! Albert Einstein

Lean 6σ Foundation to Lean 6 Sigma • "To measure is to know.“ • "If you can not measure it, you can not improve it.“ • "…I often say that when you can measure what you are speaking about, and express it in numbers, you know something about it; but when you cannot measure it, when you cannot express it in numbers, your knowledge is of a meager and unsatisfactory kind ” Lord Kelvin

Lean 6σ Right Training. Right Attitude • Lean Six Sigma is not rocket science…you can do this • Lean Six Sigma is not “easy”…it requires dedication and effort • Lean Six Sigma is not the next program…it is a way of thinking…an approach to every task performed, that asks the question…“does this add value?”

Lean 6σ What is Lean? • Identifying improvement opportunities in processes • Utilizes scientific problem solving methods • Focus on reducing non-value added steps in a process • Analyzing and improving process flows • Reducing complexity • Solving many smaller problems

Lean 6σ Value-Added Activities

Lean 6σ The Lean Ladder

Lean 6σ Eight Types of Waste • Wastes-Those Elements of a process that Do Not Increase the Value of a Product or Serviceas perceived by the Customer, butIncreases Cost and Cycle times. • IDENTIFY AND ELIMINATE THESE WASTES: • Types of Waste: • T Transportation • I Inventory (Excess) • M Motion • W Waiting • O Over-producing • O Over-processing • D Defects • U Under utilization of employees

Lean 6σ Learning Check • Why should Lean be considered? • What are Value added Activities? • What are some of the types of waste?

Lean 6σ What Is Sigma σ?

Lean 6σ What is Six Sigma? • A Philosophy for Quality Improvement • Uses a structured approach to problem solving • Utilizes Scientific Problem Solving Methods • A Statistical Measure of Variability • When Achieved, Reduces Defects in an Operation or Process to 3.4 Defects per Million Opportunities DPMO • A Way to Achieve Significant Savings • Breakthrough Improvements in Performance • 6 σis about making money

Lean 6σ Why Use Sigma As a Metric?

Lean 6σ Six Sigma Defined Six Sigma: • Is a systematic methodology utilizing effective data analysis tools and techniques to improve performance by eliminating / preventing defects and inefficiencies’ in processes, to meet and exceed customer needs. • Derives from a 99.99966% error free quality level OR less than 3.4 errors per million opportunities

Lean 6σ Learning Check • What is Sigma σ? • What is Six Sigma? • Why use Sigma as a metric? • Define DPMO

Lean 6σ Integrating Lean and Six Sigma • Natural evolution • Applies the right tools to a project • Leverages tools and methodologies to maximize process improvements • Reducing waste and variability go hand in hand in process improvement

Lean 6σ What Lean Six Sigma is not • A complicated way to manage your organization • Anew way for the “Quality Department” to audit reports and performance • Something that requires you to discard what you learned with TQM, CQI, etc. • A new way to spend money without clear benefit to the organization • Something that requires a complicated computer system • A way to eliminate jobs

Lean 6σ History of Lean, Six Sigma • Frederick W. Taylor: 1880s-early 1900s, systematicstudy of workers’ use of time and motion • Henry Ford: continuous flow production, wasteelimination • TWI: (Training Within Industry), 1940-1945 • W.E. Deming and Joseph Juran: took quality control to Japan in 1953 • Kiichiro Toyoda and Taiichi Ohno: low inventories, flexibility • U.S. supermarkets: pull systems • Shigeo Shingo: mistake proofing, reduced set up times • Toyota Production System NIKE • MIT and James Womack: bring Lean back to U.S. • NBC White Paper: If Japan can, Why can’t we?, 1980s • Eli Goldratt: published book The Goal”, early 1980’s • Motorola: global deployment launched Six Sigma 1987, opportunity for error

Lean 6σ Why Use Lean Six Sigma • LSS is the CPI industry standard • Increases throughput • Shortens cycle times • Reduces defects • Lowers cost

Lean 6σ Versatility

Lean 6σ When to Use the LSS Process • When to Use: • Driven by the Business Strategy • Problems that “have been around as long as we can remember.” • Solution is not known or is not obvious • You are willing to commit people to identify and resolve the issue • You want a more definitive solution than traditional methods can provide • You want to encourage the upward flow of ideas and build team spirit • You want group ownership of a course of action • When NOT to Use: • You don’t have a specific challenge or clear issue to solve • You already have a solution and course of action • You don’t have a consistent process to improve

Lean 6σ Lean Six Sigma Principles • Identify value in the eyes of the Customer • Learn to see your processes from the perspective of your customer • Identify the value stream and eliminate waste/variation • Make value flow at the pull of the customer • Involve, align, and empower employees • Develop solutions using the people who are currently working in the process • Continuously improve knowledge in pursuit of perfection

Lean 6σ Continuous Improvement • A framework for constantly improving organizational performance • Provides steady, incremental improvement in everything we do to meet/exceed changing expectations: • Better quality • Faster turnaround • Lower costs • More responsive service • A relentless, never-ending process • Requires that we all change the way we think talk work think, talk, work, and act

Lean 6σ A Program of Process Improvement Continuous Process Improvement (CPI) is a deliberate change in Process Performance

Lean 6σ The Importance of Reducing Variation • To increase a process Sigma Level, you have to decrease the variation • Less variation provides: • Greater predictability in the process • Less waste and rework, which lowers cost • Products and services that perform better and last longer • Happier customers

Lean 6σ Foundation to Six Sigma Y = f(X)

Lean 6σ Identify and control the X’s • Y = f(X1,X2,…) • In Improvement • Identify the key X’s to reduce variation in the Y • In Design • Carefully set specifications on the X’s so that we get the desired Y • In Process Management • Monitor and control the X’s to assure we will get the desired Y Process output is A function of Key process and input factors that cause variation in the output

Lean 6σ Why Aim as High as 6 Sigma?

Lean 6σ The Look of 6σ Performance

Lean 6σ Culture of Performance Improvement

Lean 6σ Learning Check • Why combine Lean manufacturing with Six Sigma? • Why aim for 6σ? • How do you improve a sigma level?

Lean 6σ Overview of DMAIC

Lean 6σ The DMAIC Process • Provides a structured approach for addressing problems • Provides a common language • Minimizes the risk of jumping to the wrong conclusion • Provides a checklist to prevent skipping steps • Each step has goals, tools and outputs • Tollgate reviews occur at each phase

Lean 6σ Define • Goal • Define project purpose and scope and obtain background information on the process and its customers • Outputs • Cleat statement of the intended problem and how to measure it • High-level process map • Key quality characteristics • Approach • Develop project charter • Map the process • Understand the voice of the customer

Lean 6σ Measure • Goal • Focus the improvement effort by gathering information about the current situation • Outputs • Baseline performance data • Common understanding of how the process currently operates • More focused problem statement • Approach • Collect data and check special causes • Create detailed process maps

Lean 6σ Analyze • Goal • Identify root cause and confirm with data • Outputs • A tested and confirmed theory • Understanding of the effects of the inputs on the output • Approach • Explore and organize potential causes • Use statistical methods to quantify a cause-and-effect relationship

Lean 6σ Improve • Goal • Develop, try out and implement solutions • Outputs • Planned and tested actions that eliminate or reduce the impact of root causes • Comparison of “before” and “after” data to show effects • Approach • Create possible solutions • Select solutions and develop plans • Implement plans and measure results

Lean 6σ Control • Goal • Maintain the gains by standardizing work methods or processes • Outputs • Documentation of new methods • Train others in the new process • System for monitoring the new process • Approach • Develop and document standard practices • Train teams and monitor performance • Create process for updating procedures • Summarize and communicate learning

Lean 6σ Learning Check • What does DMAIC stand for? • Describe the DMAIC process?

Lean 6σ Lean Six Sigma Simulation • Score for your team • First round will use standard MRP batching process as defined by the instructor • Second round implement the changes suggested by the class using DMAIC • Each round will last 15 minutes • The team with the most point WINS!!

Lean 6σ Questions? The Army OBT has more information on LSS and trainingopportunities. www.armyg1.army.mil/leansixsigma/whatislss.asp Do you have any questions? Thank you for joining our discussion today.

Department of Defense Lean Six Sigma