1. Lean Six Sigma Tools and Techniques Green Belt Certification Session One (Best Practices Improvement Tools and Approaches) This product was funded by a grant awarded under the President’s High Growth Job Training Initiative as implemented by the U.S. Department of Labor’s Employment & Training Administration. The information contained in this product was created by a grantee organization and does not necessarily reflect the official position of the U.S. Department of Labor. All references to non-governmental companies or organizations, their services, products, or resources are offered for informational purposes and should not be construed as an endorsement by the Department of Labor. This product is copyrighted by the institution that created it and is intended for individual organizational, non-commercial use only.

2. Session 1: Agenda –Introduction to Quality Management Systems and Lean Six Sigma –Overview of DMAIC –Lean Six Sigma Roles –Lean Sigma Team Exercises

3. Program Design The Lean Six Sigma Green Belt workshop is designed to help you learn how to make fact- based decisions as you create the Lean Quality Management System [It will enable you]To be data driven in your approach to improving processes and the outcomes for your customers. Lean Six Sigma is a strategy, a measurement and process that creates tremendous value Certification exams will be given at the conclusion of the workshop sessions.

4. Program Expectations: At the completion of the Program, you will clearly see: 1.Your role as a Lean Six Sigma Green Belt and Project Team Member in a Lean Sigma Quality Management system 2.How this will begin to help you eliminate the nagging and ongoing problems we face day-in-day-out, and the value of working on Lean improvement projects 3.Team-building skills and problem-solving tools that will allow you to measure and improve your processes 4.The value of the Lean Sigma model and consistent language across the organization 5.How the Lean Sigma Quality Tools can be used to.improve process cycle time and efficiency, eliminate waste and improve effectiveness. 6.How to look, learn and listen

5.  Sigma (  ) – a Greek letter that indicates variation about the average of any process  It is a measure of process output consistency (standard deviation)  6 Sigma (  ) = 3.4 defects/per million opportunities  Lean Six Sigma eliminates waste and reduces cycle time  Lower Cycle Time = Higher process sigma = better process output fewer errors lower operating costs lower risks improved mission performance better use of resources What is Lean Six Sigma?

6. A Lean Organization Features programs and products [that] are delivered in the right amounts, at the right time, to the right location, and in the right condition (see Lean Enterprise pg. #1) Programs and products are produced only for a specific customer rather than being added to inventory Allows production of a wide variety of programs and services, efficient and rapid changeover as needed, rapid response to fluctuating demand, and increased quality Fosters a company culture in which all employees continually improve their skill levels and production processes

7. Goals of the Lean Organization ( 1.Improve Quality 2.Eliminate Waste 3.Reduce Lead Time 4.Reduce Total Costs

8. Mental Models of Quality There are six mental models of quality: Status Quo: Quality is not an issue at our organization... We hire only the best people and our quality is as good as [anyone’s]... We keep up to our usual standards. Quality Control: Quality is the process of inspecting and catching mistakes before they get shipped... We hold people accountable for their actions Customer Service: Quality is listening to our customers and fixing their problems as quickly as possible at no extra charge... We have an 800 number to deal with bugs and complaints Process Improvement: Quality is using SPC, re-engineering and other process management techniques [are used] to eliminate unacceptable variation... People in teams are a resource for fixing process variation Total Quality: Quality is a transformation in the way we work, think, and measure success... we operate a seamless value-adding system with all aspects optimizing for a common purpose Lean Six Sigma: Lean Management and Six Sigma working together

9. Lean Six Sigma at Noven Improve Quality: What is the mental model of quality that currently exists? Eliminate Waste: What do we know about the current areas of waste? Reduce Lead Time: What is our current lead time for key products? Reduce Total Costs: Where does the opportunity exist for the maximum cost reduction?

10. Lean Management System Defined “A systematic approach to identifying and eliminating waste (non-value-added activities) through continuous improvement by flowing the product at the pull of the customer in pursuit of perfection” A Lean Management Control System consists of 42 control points grouped into 9 major key areas Lean Management is:

11. Lean Six Sigma: In A Nutshell “Lean Six Sigma (LSS) is a quality program that, when all is said and done: improves your customer’s experience, lowers your costs and builds better leaders LSS accomplishes this by reducing waste and inefficiency and by designing a company’s programs, products and internal processes so that customers get what they want, when they want it, and when you promised it”…. Jack Welch

12. Evolution of Quality Management Lean Six Sigma Product Quality – 1920s-1950s Projects Quality – 1980s Process Quality - 1990s 6 Sigma Performance Excellence: New Millennium A Historical Perspective

13. Typical Performance Average Company Purchased Material Lot reject Rate Best in Class Domestic Airline Flight Fatality Rate IRS - Tax Advice (phone-in) Restaurant Bills Doctor Prescription Writing Payroll Processing Order Write-up Journal Vouchers Air Line Baggage Handling (with ± 1.5 Sigma Shift) Preventable hospitable deaths Defects per million opportunities

14. Yield Process Sigma Defects per 1,000,000 Defects per 100,000 Defects per 10,000 Defects per 1,000 Defects per 100 99.99966%6.03.40.340.0340.00340.00034 99.9770%5.0230232.30.230.023 99.3790%4.06,21062162.16.210.621 93.320%3.066,8006,68066866.86.68 69.20%2.0308,00030,8003,08030830.8 31%1.0690,00069,0006,90069069 Process Sigma Conversion Table

15. Practical Example Airline Baggage Handling Assume 10 years ago Baggage Handling was a 2 Sigma process and 5 years ago it was at 3 Sigma What percentage of the bags were lost at these levels? Assume 5 years ago the Airlines installed Bar Code tracking of baggage and improved the system to a 4 Sigma process. What changed? What’s the percentage of lost bags today? How much improvement is this over the 2 and 3 Sigma levels? How has that affected customers and the airlines?

16. 20,000 lost articles of mail per hour Unsafe drinking water almost 5500 seconds per year. 200,000 wrong drug prescriptions each year No electricity for almost 7 hours each month     Practical Meaning of “99% Good” in USA 6 Is 99% Good Enough? At Six Sigma:  1.1 lost articles of mail each hour  180 seconds of unsafe drinking water per year  11 wrong drug prescriptions a year  No electricity for 3 minutes per year

17. The Lean Six Sigma Systems Technical System Management System (DMAIC) Social System Tactics Tools People Project Management

18. LEAN SIGMA Lifecycle Tollgates DEFINE MEASURE ANALYZE IMPROVE CONTROL Define Problem, Team Charter, & Project Plan Develop the SIPOC Diagram Develop the CTQs & SIFOC Create Measurement Scorecards Implement Project Data Collection Plans Analyze The Data Analyze The Process Analyze The Root Causes Generate Solutions Select/ Test Solutions Determine Lean Control Points Implement The Lean Management Response Plan 1 2 3 4 6 9 11 5 7 8 10 12

19. Factors The project… Ratings SD D N A SA 1-2 3-4 5-6 7-8 9-10 Weig ht Tota l A. addresses a legal or funder mandate B. addresses a strategic challenge (opportunity or threat) C. addresses an urgent need or KPI D. will positively impact the dashboard or other measure on the Balanced Scorecard E. has data available to aid in development of measurements and indicators F. will positively impact customers (internal/external) G. will not require additional funding H. will not require much additional staff time I. can be completed in less than 6 months J. can be controlled locally by team Grand Totals Project Selection Matrix

20. Define Stage Cycle Define the Problem SIPOC Map Define Customer CTQs

21. Six Steps to Defining the Problem Step 1: Identify the Project Theme and its Key Drivers Step 2: Identify the Customers and Processes involved Step 3: Identify the Team Members and Project Champion Step 4: Develop the Project Charter framework Step 5: Define the Problem Statement Step 6: Identify the ‘Desired State’ or Vision/Goal(s)

22. Step 1: Identify Project & Drivers Each project has a unique Theme and [D]rivers associated with it The Theme is usually a paragraph in length The Drivers consist of between 3 and 6 items that are the driving force behind the project

23. Step 3: Identify Team members The project team consists of a Champion, Team Leader, and Team Members There are usually 6-7 people on a typical Lean Six Sigma project, with a maximum number usually at 10

24. Step 4: Project Charter Framework The Project Charter Framework has the following components: Business Case Project Scope Goals And Objectives Problem Statement Expected benefits Milestones Team members & Champion The Charter is the contract between the team, its champion, and senior management/steering committee See Six Sigma for Everyone (pg. 33) for a Charter Framework example

25. Step 5: Create Problem Statement Poorly WrittenWell WrittenComment The new database is to hard to use Only 50% of users are using the database because based on interviews the new system is difficult to use and understand Pain must be observable and measurable Hotel occupancy is down because of poor service Hotel occupancy is down Occupancy may be down because of other causes: rates, parking, time of year, advertising. We should set up a web site to increase sales of our product The web site is a solution, but what is the problem? A Problem Statement consists of 1-2 sentences describing the symptoms arising from the problem being addressed.

26. Problem Statement Guidelines 1.Develop a statement that accurately and clearly describes the current condition that you want to change 2.Use a simple statement of fact 3.Describe the ‘pain’ clearly and in measurable terms 4.Avoid implied causes or solutions 5.Pass the ‘So What’ test 6.Make it short and sweet = 25-30 words

27. Step 6: Identify the Desired Future State The ‘desired state’ is where you want to be when the problem is solved Defining the desired state, or vision, provides a focus and direction A measurable goal makes it possible to track progress It also helps to evaluate the quality of the solution It describes the outcome you hope to reach by solving the problem

28. Confirm Customer Requirements Define The Measurement Scorecards Create Process Maps & Value Stream Maps Gather Initial Data and Determine Current Performance Stratify Data Establish Cost Benefit Measure Define Problem Theme Create Charter Develop Change Management Roles Develop [Master plan] Create SIPOC Map Define potential waste Measure CTQs Define Analyze the Measurement System Analyze the Process Develop Areas of Waste Hypotheses Gather Causal Data Determine & Validate Root Causes Analyze Areas of Waste Analyze Identify Breakthroughs Identify / Select Practical Approaches Perform Cost/ Benefit Analysis Design Future State: FMEA Establish Performance Targets Poke-Yoke Quick-and-easy Kaizens Improve/ Innovate Improve/ Innovate Implement Solutions Measure Results P-D-C-A Process Lean Management Scorecards Control DMAIC Management Planning System The above elements are the 30 common building blocks of a LSS Project Plan

29. Key Questions for Each Project