1. “Safety is a Measure of Success”
Lean Six Sigma
An Overview
The Objective of this Presentation is to provide update on
“Safety is a Measure of Success”

2. “Safety is a Measure of Success”
Agenda
What is Six Sigma
What is Lean Thinking
Lean Six Sigma and Change
Lean Six Sigma Methodology
Lean Six Sigma Organization
Developing a Charter for Lean Six Sigma Project
Lean Six Sigma Financial Benefits
“Safety is a Measure of Success”

3. “Safety is a Measure of Success”
What is Six Sigma ?
Sigma (σ), a Greek letter, denotes standard deviation.
Six Sigma is a metric that measures the performance of a process.
Six Sigma as a metric
A process running at Six Sigma quality level produces no more than 3.4 defective parts per million opportunities (DPMO).
The variation in the process is reduced so that it does not produce defects % of the time.
“Safety is a Measure of Success”

4. Understanding and reducing variation
Lower Specification Limit (LSL)
Upper Specification Limit (USL)
# of Goals
“Safety is a Measure of Success”

5. N Why to raise the quality standard ? . 3.8-Sigma 99% Good 6-Sigma
3.4 defects per million opportunities .
• 20,000 lost articles of mail per hour.
• 5,000 incorrect surgical operations per week.
• Two short or long landings at most major airports each day.
• 200,000 wrong drug prescriptions each year.
• Seven articles lost per hour.
• 1.7 incorrect operations per week.
• One short or long landing every five years.
• 68 wrong drug prescriptions per year. N
Based on U.S. statistics in the 1990s
“Safety is a Measure of Success”

6. “Safety is a Measure of Success”
What is Lean Thinking ?
Lean ideas originally developed in the United States (Ford Motors, 1914) and than widely used by Japanese (Toyota, 1950).
Lean Thinking is also known as lean, lean production, lean manufacturing, Toyota production system (TPS), Just-in-time (JIT) etc.
It is a common sense approach.
Lean is focused at eliminating the waste in the processes that in return increases the speed, improves the quality, and reduces the cost.
Machine that changed the world
Lean manufacturing.
“Safety is a Measure of Success”

7. “Safety is a Measure of Success”
Understanding Wastes
Overproduction
Unwanted Transportation
Waiting
Unwanted Movement
Over Inventory
8 Wastes
Over processing
There are generally 8 types of waste in organizations
Overproduction of goods…..building too much inventory
Unnecessary transports of goods
Waiting by employees for an activity to complete….i.e. waiting for approvals
Inventory of goods to compensate for long lead time
Defects in products…….. wrong or damaged material
Over processing……doing more than required
Unused Employee creativity
Unnecessary movement of people…..from one side of the building to the other
Unused Employee Creativity
Defects
“Safety is a Measure of Success”

8. Lean Six Sigma Definition
Lean Six Sigma is a rigorous, disciplined, and data driven business process optimization and problem solving methodology which aims to reduce variability, eliminate non-value added activities (waste), and reduce cost.
Lean Six Sigma is applicable to any process/activity and it is well-proven methodology worldwide.
Lean eliminates process wastes.
Six Sigma reduces process variability and defects.
“Safety is a Measure of Success”

9. Lean Six Sigma and Change
In order to develop, sustain, and become competitive, we have to make changes.
Lean Six Sigma is all about:
Changing the culture of an organization
Changing the processes to meet new customer requirements and to remove constraints.
Lean Six Sigma is a physical transformation of the processes, and it is a transformation of the organizational cultural
“Safety is a Measure of Success”

10. Lean Six Sigma Methodology
Practical
Problem
Lean Six Sigma Methodology
Phase 2
Measure
Characterization
Analytical
Problem
Phase 3
Analyze
Phase 1
Define
Analytical
Solution
Phase 4
Improve
Optimization
Practical
Solution
Lean Six Sigma uses the DMAIC (Define, Measure, Analyze, Improve, Control) process as a disciplined and methodological approach for problem solving and process improvement
Phase 5
Control
DMAIC
Define
Measure
Analyze
Improve
Control
“Safety is a Measure of Success”

11. “Safety is a Measure of Success”
Define Phase
Define the problem.
Identify the customer(s).
Organize the team and define its roles and responsibilities.
Establish goals and milestones.
Establish the scope of the LSS project.
Define the metrics.
Map the process.
Develop data collection plan.
What is important to customers OR business goals?
The main goal of the define phase is to define the problem and agree on the objective.
In the define phase, we answer the question: What is the scope of the problem
COMMUNICATION
“Safety is a Measure of Success”

12. “Safety is a Measure of Success”
Measure Phase
Collect data on current process.
Confirm the customer’s needs, and expectation.
Validate measurement system.
Determine input variables (X’s) that may impact output (Y’s).
Establish baseline measurement of current process.
How is the process performing?
How does it look / feel like to the customer?
How good is the data?
In the measure phase, we answer the question: What is the frequency of defects
COMMUNICATION
“Safety is a Measure of Success”

13. “Safety is a Measure of Success”
Analyze Phase
Narrow the focus to specific issues.
Develop a mechanism to analyze data.
Identify what is causing defects, waste and variation. Characterize the variables (X’s).
Find improvement opportunities.
Based on data analysis, revisit problem statement and assess the need to further scope the issues.
What are the most important causes of process waste, defects & variation?
COMMUNICATION
In the analyze phase we identify the few key factors which are directly influencing the problem
In the analyze phase, we answer the question: Where and why do defects occur?
“Safety is a Measure of Success”

14. “Safety is a Measure of Success”
Improve Phase
Validate hypothesis about the root cause of the problem
Identify critical variables (X’s)
Identify alternate solutions
Determine optimal solution
Perform cost/benefit analysis
Design improvements
Pilot improvements
Implement and validate improvements
Move the mean.
Shrink the variance.
Eliminate the waste.
In the improve phase, we answer the question: How can we fix the problem
COMMUNICATION
“Safety is a Measure of Success”

15. “Safety is a Measure of Success”
Control Phase
Ensure corrective actions are taken.
Mistake-proof the process.
Transition the control of the new process to the process owner.
Provide techniques to sustain the improvements.
Measure the final capability.
Monitor performance.
How can we maintain the process improvements?
COMMUNICATION
In the control phase we Determine long term control measures which will ensure that improvements are sustained.
In the control phase, we answer the question: How can we make the process stay fixed
“Safety is a Measure of Success”

16. Lean Six Sigma Organization
Roles & Responsibilities
Champions
Own the vision, direction, integration, and results.
Identify Black Belts/Green Belts, and help in project identification.
Process Owners
Identify and assist in scoping projects.
Own the process.
Ensure changes are sustained.
Black Belts
Green Belts
Apply Lean Six Sigma to specific projects
Lead and direct teams to execute projects
“Safety is a Measure of Success”

17. 5 W and 2 H problem identification approach
Developing the project charter
5 W and 2 H problem identification approach
Example
Who? Identify customers complaining about the problem
What? Define the problem accurately
When? Timing - When did the problem start?
Where? Location - Where is it occurring?
Why? Identify the causes (5 WHYs)
How? In what mode the problem occur
How many? Magnitude or frequency of the problem
Problem Statement:
On-time delivery performance of all ABC units is only 60%. This results in customer complaints and shipment rejections that in turn increases the inventory levels.
Goal:
Improve on-time delivery to 95% by the end of June 2009.
“Safety is a Measure of Success”

18. Lean Six Sigma Practitioner Qualities
Customer focus, self-motivated and positive personality
Leadership skills
Excellent communication and presentation skills
Project management skills
Process and product knowledge is preferred
Team player
Result oriented
Data mining
Passionate
Patience
Learner
“Safety is a Measure of Success”

19. Common Causes of Project Failures
Inadequate management support.
Inadequate time for Green Belts/ Black Belts and other team members .
Project Scope Is Too large
“Boiling the ocean”
Project Scope Is Too small
Projects with little business impact.
Solution-in-Mind
“Just Do It” projects do not require the rigors of the LSS DMAIC process.
Data not available or not valid.
Lack of “soft skills” (communication, leadership, team building, and change management).
“Safety is a Measure of Success”

20. Example: Work Order Process
Process Mean
Improved Process
Existing Process 1 50
100
Output Variation in weeks
Customers Remember the Extremes (Variation), not the Average
Average tells little about customer experience.
To drive dramatic improvements in performance, the variance in a process must first be minimized
Customers Remember the Extremes (Variation), not the Average
“Safety is a Measure of Success”

21. Lean Six Sigma and Financial Benefits
From 1986 – 2001, Motorola saved $16 billions.
From 1996 – 1999, GE saved $4.4 billions.
From 1998 – 2000, Honeywell saved $ 1.8 billions.
From Ford saved $1 billion.
Over the past 20 years Six Sigma saved Fortune 500 companies an estimated $427 billion.
“Safety is a Measure of Success”

22. Safety is a Measure of Success
“We are what we repeatedly do. Excellence then, is not an act, but a habit.” ~ Aristotle, 4th century BC Greek philosopher
Thank You
Reliability is Everyone's Business and its Improvement is a Continuous Journey
Safety is a Measure of Success