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Office of the Secretary of Defense Lean Six Sigma Overview

Office of the Secretary of Defense Lean Six Sigma Overview. Mr. Wayne Leathers Master Black Belt DoD Lean Six Sigma Program Office Office of the Deputy Chief Management Officer. Unclassified. Agenda. What is Lean Six Sigma? DMAIC Overview Continuous Process Improvement

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Office of the Secretary of Defense Lean Six Sigma Overview

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  1. Office of the Secretary of Defense Lean Six Sigma Overview Mr. Wayne Leathers Master Black Belt DoD Lean Six Sigma Program Office Office of the Deputy Chief Management Officer Unclassified

  2. Agenda • What is Lean Six Sigma? • DMAIC Overview • Continuous Process Improvement • Selecting The Right Projects

  3. Foundation of Lean 6 Sigma If you cannot express what you know in numbers, you don’t know much about it; If you don’t know much about it, then you can’t control it; If you can’t control it, you are at the mercy of chance. -Dr. Mikel Harry Motorola

  4. Foundation of 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

  5. Why Lean Six Sigma? • It Works • Proven Track Record • It is needed • DepSecDef has mandated that all of DoD begin practicing some form of Continuous Process Improvement (CPI) • Many different methods of CPI available, but none have a more balanced approach than Lean Six Sigma

  6. What is Lean? What you Want it to be.. What you Believe it is... What it Actuallyis... • Lean is a methodology that evaluates processes with a focus on • Speed • Efficiency Cut Waste & Remove Non-Value Added activities

  7. What is Lean? SES Level Staff Director Action Officers Lean breaks a process down to understand the steps and actions as they occur, the time and resources needed to complete, as well as the delay and wait time between process steps

  8. What is Six Sigma? • Six Sigma evaluates a process in terms of performance, accuracy, and consistency • Pain Points in performance are targeted for improvement

  9. The Look of 6s Performance 99% Good 99.99966% Good Lost articles of mail per hour 20,000 7 Incorrect surgeries per wk 5,000 1.7 Wrong prescriptions each yr 200,000 68 Hours without electricity 7 hr per month 1 hr per 34 years

  10. Why Aim as High as 6 Sigma? Even at 99% quality (equivalent to a sigma level of 3.8), there would be: • At least 200,000 wrong drug prescriptions per year • Unsafe drinking water almost 10 hours each month • Two short or long landings at O’Hare airport each day • Over 90,000 wrong felony convictions per year • 20,000 lost or incorrectly delivered articles of mail per hour

  11. Why Use Lean Six Sigma? US DoD Wells Fargo Robert Half Fifth Third Bank CitiGroup • LSS is the CPI industry standard • Increase throughput • Shorten cycle times • Reduce defects • Lower costs Fannie Mae Bank Of America Intuit AXA Equitable United Health Group Cardinal Health Blue Cross Providence Health Home Depot Maytag Praxair Ford Air Products Honeywell Johnson Controls Johnson & Johnson Siemens Compaq Seagate PACCAR Toshiba DuPont Dow Chemical Siebe Foxboro Lockheed Martin Bombardier John Deere Whirlpool GenCorp Nokia Sony Motorola ABB TI IBM DEC Kodak AlliedSignal GE 1992 1995 2000 Today

  12. Where Are Businesses Today? Experts think most businesses fall between 3 - 4 sigma

  13. A Program of Process Improvement • Define project scope • Determine primary metric • Determine secondary metric(s) Define • Validate the Y measurement system • Determine initial capability • Subjective exploration of potential Xs Measure • Characterize the XY relationships • Use graphical and quantitative analyses to separate trivial many from critical few. Analyze • Confirm critical Xs • Reduce variation • Shift the mean • Confirm results Improve • Assess new process capability • Mistake-proof the process • Place controls on process • Document and share the results Control Practical Problem Statistical Problem Statistical Solution Practical Solution

  14. What else is Six Sigma? Cultural Change

  15. Fundamental Principle of LSS key process and input factors that cause variation in the output process output is a function of We know we must change Xs to create a change in Y…  But how do we know which Xs to change and how to change them? y = f (x1, x2, …) That’s the purpose of Six Sigma!

  16. What is our Mission? (x) (x) Y (x) = f (x) (x) Y (x) = f

  17. Who is the Customer? How do we know if we are meeting our customer’s expectations?

  18. Who is the Customer? • What is the mission of your organization? • Who is the customer for your organization? • Are they internal, external, or both • Military, civilian, political, taxpayers? • Do you know when you are succeeding or failing your mission? • Are your customers satisfied with your organization’s performance? ?

  19. Determining Customer Expectations • How are expectations communicated? • Are the mission objectives measurable? • Are customer expectations clearly understood throughout the entire organization? • Have specifications been confirmed?

  20. Performing to Expectations • The specification limits represent the parameters of performance desired by the customer. • The Upper Spec Limit (USL) & Lower Spec Limit (LSL) represent the level of tolerance around this desired target. • Together, they represent what the customer wants! Not what the process does. Target LSL USL

  21. Benefits of Continuous Improvement • Project benefits can come in many forms: • Improved Mission Success • Improved Quality Performance • Improved Customer Satisfaction • Improved Budget Execution • Improved Financial Investment • Productivity Improvements • Throughput improvement • On Time Delivery • Reduced contractor dependency • Accuracy Improvement • Error Reduction • Financial savings • Cost Avoidance

  22. The Lean Six Sigma Cadre • Green Belt • Researcher, Data Analyzer, Team leader • Black Belt • Full-time Practitioner • Master Black Belt • Manages deployment of several Black Belts and mentors Black Belts/ Green Belts • Champion • Executive-level Sponsor/Supporter • Senior Steering Committee • OSD, Service, Agency, Activities Reps

  23. Strategic Objectives Strategy/Tactics Key Processes Performance Management Mission Vision Critical to Success QUALITY / COST / DELIVERY Metrics Must be able to tell us if we are meeting objectives Prioritize initiatives according to their impact on the Mission Objectives that are most important to the achievement of our Strategic Objectives. Process Improvement Projects

  24. Why CPI Initiatives Fail • Poor Project Selection • Projects are too large in scope • Projects are insignificant in value • Allowing projects to drift from connection to Mission Strategy • Undertaking more than staffed to handle • Little or no sharing of results and best practices • Forgetting about the people not directly involved in the deployment • Forgetting human nature • People are resistant to change and …”What’s in it for Me?” • Not changing the culture of the organization • Inadequate tracking and reporting of Key Process Indicators (KPIs) at the senior leadership level

  25. The Lean Six Sigma Tollgate Define Measure Analyze Improve Control Involve, Align and Empower

  26. Lean Six Sigma Time for Questions

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