Six Sigma Books....
Good Six Sigma books to learn at beginning...Can read easily from eBooks - Google
Six Sigma Proverbs
1.Knowledge is power – Francis Bacon
2.The secret of success is constancy of purpose – Benjamin Disraeli
3.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. It may be the beginning of knowledge, but you have scarcely, in your thoughts, advanced to the stage of science. – William Thomson, Lord Kelvin
4.The difference between failure and success is doing a thing nearly right and doing it exactly right – Edward Simmons
2.The secret of success is constancy of purpose – Benjamin Disraeli
3.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. It may be the beginning of knowledge, but you have scarcely, in your thoughts, advanced to the stage of science. – William Thomson, Lord Kelvin
4.The difference between failure and success is doing a thing nearly right and doing it exactly right – Edward Simmons
Six Sigma Guide Part III - to initiate training in any organization
Quick Overview of Six Sigma Tools
- What are three measures of the central tendency of data?
- What is a histogram? When would a project team use a histogram? Why? How could it help in that situation?
- What is a frequency distribution bar chart?
- What is a normal distribution?
- What is bin width? Why does it matter?
- What is dispersion?
Six Sigma Guide Part - II - to initiate Six Sigma training in any organization
Implementing Six Sigma
1. What is the role of an implementation partner?
2. What is the difference between hard dollars and soft dollars?
3. Describe the Six Sigma approach to training. What is the basic principle?
4. What is a Pareto chart? How is it used in Six Sigma projects?
5. What is the role of a master black belt?
Roles and Responsibilities
1. What is the key role of executive leaders in a Six Sigma initiative? What qualities do they need?
2. What is the key role of champions in a Six Sigma initiative?
3. What is the key role of a master black belt in a Six Sigma initiative?
4. What is the key role of black belts in a Six Sigma initiative?
5. What is the key role of green belts in a Six Sigma initiative?
6. What personality traits make a person a more successful black belt?
Six Sigma Guide Part I - to initiate Six Sigma training in any organization
The following discussion questions are intended to facilitate the use of Six Sigma, as a training guide in any organization that is initiating Six Sigma or considering it.
What Is Six Sigma? What is Six Sigma as a methodology?
- What is Six Sigma as a statistical concept? How does it translate into a quality percentage?
- What is a defect? What is the importance of this term in Six Sigma?
- What is DPMO?
- What is variation? What is the importance of this term in Six Sigma?
- What are the vital few factors?
- What is a champion in Six Sigma? What are the responsibilities of a champion?
- What is a black belt in Six Sigma? What are the responsibilities of a black belt? What qualifications are required to be a black belt?
- What is a CTQ? Why is it necessary to identify CTQs?
- What is DMAIC?
Why Do Six Sigma?
- What is the cost of poor quality? In what areas would you suspect that poor quality in your unit is costing your organization the most?
- What qualifies an activity as value-added? What activities in your unit or elsewhere in you organization would you consider non-value-added?
- What are the basic steps in benchmarking a process?
- How does Six Sigma benefit employees?
Setting Business Metrics
Six Sigma Value Stream Mapping
What is Value Stream Mapping?
VSM is a pencil & paper tool that helps to see & understand the flow of material & information as a product or service makes its way through the value stream.
Why VSM?
VSM is a pencil & paper tool that helps to see & understand the flow of material & information as a product or service makes its way through the value stream.
Why VSM?
- It is a Blueprint for improvement.
- Clear Focus on the Customer
- Best Tool to document current state
- Clear communication of current state to generate
- Easy to identify wastes
- Avoids Sub-optimizing the process
LEAN Basic Tools Concepts - Part 7
VISUAL PROCESS CONTROLS
Purpose - Displays and visual markers that:
•Establishes and posts work priorities
•Visually displays whether expected daily, weekly, monthly work performance/goals were met or not
•Allows for better understanding of work flow and inputs
•Quickly identifies abnormal conditions
•Displays standardized methods in use
•Communicates performance measures
•Displays the status of elements critical to safe and effective operations
•Provides feedback to/from team members, supervisors, management
•Eliminates or reduces the need for meetings
When to use it - Pretty much always
How to do it -
Production Summary Boards (Takt Boards): Monitors the output of a process step or process in order to judge if it is meeting customer demand. Takt boards should provide this information:
- The specific work being done
- The desired speed or completion rate
- Actual completion rate
Purpose - Displays and visual markers that:
•Establishes and posts work priorities
•Visually displays whether expected daily, weekly, monthly work performance/goals were met or not
•Allows for better understanding of work flow and inputs
•Quickly identifies abnormal conditions
•Displays standardized methods in use
•Communicates performance measures
•Displays the status of elements critical to safe and effective operations
•Provides feedback to/from team members, supervisors, management
•Eliminates or reduces the need for meetings
When to use it - Pretty much always
How to do it -
Production Summary Boards (Takt Boards): Monitors the output of a process step or process in order to judge if it is meeting customer demand. Takt boards should provide this information:
- The specific work being done
- The desired speed or completion rate
- Actual completion rate
LEAN Basic Tools Concepts - Part 6
PROCESS BALANCING
Purpose: To balance work across different sub processes
When to use it : When lead time is a problem
How to do it
•Minimize movement
•Stabilize lead time before trying to minimize it
•Maximize resource efficiency
•Minimize number of process steps
•Balance tasks/labor across process steps
•Maximize space utilization
•Minimize Non-Value Add activities (conveyance, standby and motion wastes)
•Minimize the need to rebalance as demand requirements change
•Minimize volume variability (combine product category demand)
•Maximize flexibility for product introductions and discontinuations
•Use training and continual reinforcement to maintain gains
WORK CELL OPTIMIZATION
Purpose - To reduce the time needed to complete a task or set of tasks and reduce mistakes
When to use it - To reduce inefficient workflow (i.e. too much movement of material and/or people)
How to do it - Will never get the design perfect the first time – get it in place then use operator feedback and continuous improvement
Purpose: To balance work across different sub processes
When to use it : When lead time is a problem
How to do it
•Minimize movement
•Stabilize lead time before trying to minimize it
•Maximize resource efficiency
•Minimize number of process steps
•Balance tasks/labor across process steps
•Maximize space utilization
•Minimize Non-Value Add activities (conveyance, standby and motion wastes)
•Minimize the need to rebalance as demand requirements change
•Minimize volume variability (combine product category demand)
•Maximize flexibility for product introductions and discontinuations
•Use training and continual reinforcement to maintain gains
WORK CELL OPTIMIZATION
Purpose - To reduce the time needed to complete a task or set of tasks and reduce mistakes
When to use it - To reduce inefficient workflow (i.e. too much movement of material and/or people)
How to do it - Will never get the design perfect the first time – get it in place then use operator feedback and continuous improvement
LEAN Basic Tools Concepts - Part 5
TOTAL PRODUCTIVE MAINTENANCEPurpose: To reduce scheduled and unscheduled down time from typical levels of 30% to below 5%
Preventive Maintenance: Maintenance that occurs at regular time or usage intervals
Predictive Maintenance: Maintenance that is performed based on signals or diagnostic techniques
•TPM Metrics
Operation Equipment Effectiveness or OEE = Availability Level X Operating Level
X Quality Level
MTTF: Mean time between failure
MTTR: Mean time to repair
When to use it - When planned and unscheduled downtime are contributing to poor
How to do it -
Rework: Assess current operating conditions
•Evaluate machine/resource utilization, productivity, etc.
•Tally maintenance repair costs (parts and labor, extra training time, etc.)
Phase 1: Return equipment to reliable condition
1.Clean thoroughly
2.Place a defect tag (can be color coded) on all equipment showing categories of what needs to be done. Record in a project notebook.
3.Perform repairs
Phase 2: Eliminate breakdowns
1.Review defect tags from Phase 1
2.Eliminate factors leading to failure
3.Improve accessibility to machines/parts
Phase 3: Develop TPM database
1.Document all preventive and predictive maintenance activities
Phase 4: Eliminate defects
1.Provide for early detection of problems by training all relevant personnel in preventive and predictive maintenance techniques
2.Install visual controls (see slides 46-48)
3.Implement 5S housekeeping techniques (see slides 26–31)
4.Regularly review and improve machine performance Improve safety
MISTAKE PROOFING AND PREVENTION (POKA-YOKE)
Purpose : To prevent mistakes from occurring or making it impossible to pass mistakes on to the next step in the process
Examples: Mistake Prevention
•Machine operations that make it impossible or very difficult to produce a defective product. Does not require human assistance
•Electronic checklist built into a product or process/procedure
Mistake Proofing
•Devices or systems that either prevent the defects or inexpensively inspect each item to determine if it is defective
•Software programming that makes it impossible to move onto the next step without accurately completing prior steps
When to use it - When rework to correct errors or process delays downstream are hurting Process
How to do it - There are two basic Poka-yoke approaches
A.Control/Warning Approach
•Shuts down the process or signals personnel when an error occurs
•Dials, lights and sounds bring attention to the error
•Prevents the suspect work from moving on until the process step is complete
•Process stops when irregularity is detected (may be necessary if too costly to implement mistake proofing)
•High capability of achieving zero defects
B.Prevention Approach
•Employs methods that DO NOT ALLOW an error to occur or be produced
•Gives 100% elimination of mistakes (100% zero defects)
7 Steps to Mistake Proofing
1.Describe the mistake and its impact to customers
2.Identify the process step where the defect is discovered and the step where it is created
3.Detail the standard procedures where the defect is created
4.Identify errors in or deviations from standard procedure
5.Investigate and determine the root cause of deviations
6.Brainstorm methods to eliminate or detect the deviation early
7.Create, test, validate, and implement mistake proofing devices/procedures
Preventive Maintenance: Maintenance that occurs at regular time or usage intervals
Predictive Maintenance: Maintenance that is performed based on signals or diagnostic techniques
•TPM Metrics
Operation Equipment Effectiveness or OEE = Availability Level X Operating Level
X Quality Level
MTTF: Mean time between failure
MTTR: Mean time to repair
When to use it - When planned and unscheduled downtime are contributing to poor
How to do it -
Rework: Assess current operating conditions
•Evaluate machine/resource utilization, productivity, etc.
•Tally maintenance repair costs (parts and labor, extra training time, etc.)
Phase 1: Return equipment to reliable condition
1.Clean thoroughly
2.Place a defect tag (can be color coded) on all equipment showing categories of what needs to be done. Record in a project notebook.
3.Perform repairs
Phase 2: Eliminate breakdowns
1.Review defect tags from Phase 1
2.Eliminate factors leading to failure
3.Improve accessibility to machines/parts
Phase 3: Develop TPM database
1.Document all preventive and predictive maintenance activities
Phase 4: Eliminate defects
1.Provide for early detection of problems by training all relevant personnel in preventive and predictive maintenance techniques
2.Install visual controls (see slides 46-48)
3.Implement 5S housekeeping techniques (see slides 26–31)
4.Regularly review and improve machine performance Improve safety
MISTAKE PROOFING AND PREVENTION (POKA-YOKE)
Purpose : To prevent mistakes from occurring or making it impossible to pass mistakes on to the next step in the process
Examples: Mistake Prevention
•Machine operations that make it impossible or very difficult to produce a defective product. Does not require human assistance
•Electronic checklist built into a product or process/procedure
Mistake Proofing
•Devices or systems that either prevent the defects or inexpensively inspect each item to determine if it is defective
•Software programming that makes it impossible to move onto the next step without accurately completing prior steps
When to use it - When rework to correct errors or process delays downstream are hurting Process
How to do it - There are two basic Poka-yoke approaches
A.Control/Warning Approach
•Shuts down the process or signals personnel when an error occurs
•Dials, lights and sounds bring attention to the error
•Prevents the suspect work from moving on until the process step is complete
•Process stops when irregularity is detected (may be necessary if too costly to implement mistake proofing)
•High capability of achieving zero defects
B.Prevention Approach
•Employs methods that DO NOT ALLOW an error to occur or be produced
•Gives 100% elimination of mistakes (100% zero defects)
7 Steps to Mistake Proofing
1.Describe the mistake and its impact to customers
2.Identify the process step where the defect is discovered and the step where it is created
3.Detail the standard procedures where the defect is created
4.Identify errors in or deviations from standard procedure
5.Investigate and determine the root cause of deviations
6.Brainstorm methods to eliminate or detect the deviation early
7.Create, test, validate, and implement mistake proofing devices/procedures
LEAN Basic Tools Concepts - Part 4
5S
Purpose - To create and maintain a clean, safe and high performing workplace. 5S:
•Enables anyone to distinguish between normal and abnormal conditions at a glance
•Is the foundation for continuous improvement, zero defects, cost reduction and a safe work area
•Is a systematic way to improve the workplace, processes and products through employee involvement
5S Definitions
Sort: Clearly distinguish between needed and unneeded items and eliminate the latter
Set in Order (also known as Simplify): Keep needed items in their correct place to allow for easy and immediate retrieval
Shine (also known as Sweep): Keep the work area swept and clean
Standardize: Standardize clean up (the first three S’s)
Sustain (also known as Self-Discipline): Make a habit of sustaining established procedures
REDUCE BATCH SIZE
Purpose: Create minimum safe batch sizes
•Batch sizes often set by management based on industrial engineering formulas or demand for a fixed time period
•Both typically result in lead times and inventory generally 30% to 80% larger than process requires
When to Use It: To create a lean system operating at peak efficiency with lowest cost
Purpose - To create and maintain a clean, safe and high performing workplace. 5S:
•Enables anyone to distinguish between normal and abnormal conditions at a glance
•Is the foundation for continuous improvement, zero defects, cost reduction and a safe work area
•Is a systematic way to improve the workplace, processes and products through employee involvement
5S Definitions
Sort: Clearly distinguish between needed and unneeded items and eliminate the latter
Set in Order (also known as Simplify): Keep needed items in their correct place to allow for easy and immediate retrieval
Shine (also known as Sweep): Keep the work area swept and clean
Standardize: Standardize clean up (the first three S’s)
Sustain (also known as Self-Discipline): Make a habit of sustaining established procedures
REDUCE BATCH SIZE
Purpose: Create minimum safe batch sizes
•Batch sizes often set by management based on industrial engineering formulas or demand for a fixed time period
•Both typically result in lead times and inventory generally 30% to 80% larger than process requires
When to Use It: To create a lean system operating at peak efficiency with lowest cost
LEAN Basic Tools Concepts - Part 3
Lean Tools: Generic Pull System
Purpose - To place a limit or cap on the maximum number of things or work in process (TIP or
WIP), so that lead times are known and predictable (see Little's Law, slide 14). Then
apply improvement tools to reduce WIP/TIP by eliminating the effects of variation
(traditional Six Sigma) and batch size.
When to Use It - Whenever lead times are critical to satisfy customers and when NVA cost is significant
compared to VA cost.
How to do it -
Part 1: Determine WIP Cap (Maximum amount of work or things that should be in process at any one time)
Step 1: Determine Current Total Lead Time (TLT)
•Option 1: Track individual items through the process, measure lead time
•Option 2: Use Little’s Law to get an average lead time
Step 2: Determine current Process Cycle Efficiency (PCE, see slide 13)
Step 3: Identify Target PCE
* Level at which the process should be operating based on “world class”
(high end efficiency
* If current PCE is:
<< low end, multiply current PCE by 10 to get target PCE
< low end, use low end figure as target PCE
= or > low end, use high end as target PCE
>> high end, move toward one step flow
Step 4: Calculate target lead time for the process.
* Lowest process cycle time with the current process
Target Lead Time = VA time for critical path/Target PCE
Step 5: Calculate WIP Cap
* Maximum WIP allowed within the process at any given time
WIP CAP = Target Lead Time x Exits
Purpose - To place a limit or cap on the maximum number of things or work in process (TIP or
WIP), so that lead times are known and predictable (see Little's Law, slide 14). Then
apply improvement tools to reduce WIP/TIP by eliminating the effects of variation
(traditional Six Sigma) and batch size.
When to Use It - Whenever lead times are critical to satisfy customers and when NVA cost is significant
compared to VA cost.
How to do it -
Part 1: Determine WIP Cap (Maximum amount of work or things that should be in process at any one time)
Step 1: Determine Current Total Lead Time (TLT)
•Option 1: Track individual items through the process, measure lead time
•Option 2: Use Little’s Law to get an average lead time
Step 2: Determine current Process Cycle Efficiency (PCE, see slide 13)
Step 3: Identify Target PCE
* Level at which the process should be operating based on “world class”
(high end efficiency
* If current PCE is:
<< low end, multiply current PCE by 10 to get target PCE
< low end, use low end figure as target PCE
= or > low end, use high end as target PCE
>> high end, move toward one step flow
Step 4: Calculate target lead time for the process.
* Lowest process cycle time with the current process
Target Lead Time = VA time for critical path/Target PCE
Step 5: Calculate WIP Cap
* Maximum WIP allowed within the process at any given time
WIP CAP = Target Lead Time x Exits
LEAN Basic Tools Concepts - Part 2
Time Efficiency Metrics: Used to Identify the Sources and Impact of Inefficiency
PROCESS CYCLE EFFICIENCY (PCE)
•Best measure of overall process health
•Percentage of VA time in the process: PCE = VA Time/Total Lead Time
•Total Lead Time can either be measured by measuring the total time it takes “things in process” to transit the process or use Little's Law (next slide) to determine the average PCE.
•PCE tells how efficiently the process is converting work-in-process into exits/completions
•Low PCE processes have large NVA work and costs and therefore great opportunities for improvement. Crate a Value Stream Map to indicate these opportunities. PCE values of 10% or so are common pre-improvement.
•The only way to improve PCE is to reduce NVA work and costs.
Little’s LAW
•On prior slide, defined PCE = VA Time/Total Lead Time
•Little's Law is: Total Lead Time = # Things in Process/Av. Completion Rate
Number of things in process = TIP or WIP
• Little's Law shows the relationship between TIP or WIP and the completion (exit) rate of the process.
•To improve Total Lead Time and, in turn, PCE, either increase capacity (average completion rate) and/or reduce TIP or WIP.
PROCESS CYCLE EFFICIENCY (PCE)
•Best measure of overall process health
•Percentage of VA time in the process: PCE = VA Time/Total Lead Time
•Total Lead Time can either be measured by measuring the total time it takes “things in process” to transit the process or use Little's Law (next slide) to determine the average PCE.
•PCE tells how efficiently the process is converting work-in-process into exits/completions
•Low PCE processes have large NVA work and costs and therefore great opportunities for improvement. Crate a Value Stream Map to indicate these opportunities. PCE values of 10% or so are common pre-improvement.
•The only way to improve PCE is to reduce NVA work and costs.
Little’s LAW
•On prior slide, defined PCE = VA Time/Total Lead Time
•Little's Law is: Total Lead Time = # Things in Process/Av. Completion Rate
Number of things in process = TIP or WIP
• Little's Law shows the relationship between TIP or WIP and the completion (exit) rate of the process.
•To improve Total Lead Time and, in turn, PCE, either increase capacity (average completion rate) and/or reduce TIP or WIP.
LEAN Basic Tools Concepts - Part 1
Things to know before we start -
TOTAL LEAD TIME
(also called total cycle time, process lead time, or total cycle time): The time from when
a work item enters a process until it exits.
EXAMPLE: Total Lead Time of a mortgage process could be measured as the elapsed
time from when an applicant calls until the mortgage closes (average = 33 days).
THINGS IN PROCESS (TIP) or WORK IN PROCESS (WIP):
Any work item that has entered the process and not yet exited. Can be anything:
materials, orders, applications, emails, etc.
EXAMPLE: There were 3300 refinance applications in process at the end of the month.
TOTAL LEAD TIME
(also called total cycle time, process lead time, or total cycle time): The time from when
a work item enters a process until it exits.
EXAMPLE: Total Lead Time of a mortgage process could be measured as the elapsed
time from when an applicant calls until the mortgage closes (average = 33 days).
THINGS IN PROCESS (TIP) or WORK IN PROCESS (WIP):
Any work item that has entered the process and not yet exited. Can be anything:
materials, orders, applications, emails, etc.
EXAMPLE: There were 3300 refinance applications in process at the end of the month.
LEAN is for Every Process!!!
Lean is... A principle driven, tool based philosophy that focuses on eliminating waste so that all activities/steps add value from the customers perspective.
Imagine Office Processes with:
•Shorter Lead Time
•Higher Flexibility
•Higher Quality
•Lower Costs
•Higher Employee Satisfaction
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