LEAN SIX SIGMA OVER VIEW

LEAN SIX SIGMA OVER VIEW

KIEU VAN TON

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Classroom Logistics
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You will get acquainted with fellow class participants
You will get to know who the Instructors are
We will make sure that you have all the proper training materials and software
You will understand what is an adult learning environment
We will establish a baseline of statistical knowledge
You will begin to develop an understanding of the Lean Six Sigma Improvement
Processes
• We will present an overview of the Lean Six Sigma material to be covered this
course
• You will understand the benefits of becoming a Green Belt
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Classroom Logistics
• Name
• Business Group/plant/location

• Years experience
• Hobby/interest
• Project problem statement
• Expectations (let’s capture these on flipcharts)
• Please limit your introduction to less than 60 seconds

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Classroom Logistics
• Expectations are that you:
• Have a project and Project Charter
• Will actively participate in class
• Will follow the Code of Conduct

• Will come to class prepared

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What is six sigma?
• A statistical measure for determining process capability (Six Sigma
Quality level equates to 3.4 defects per million opportunities)
• A proven set of tools and tactics for reducing variation
• A successful business strategy (in use by GE, Motorola, Texas
Instruments, Eli Lilly, Roche, Bank of America….)
• A comprehensive philosophy about operational excellence
• A complementary discipline to existing tools
• Focus on Customer Satisfaction, Improving Process Capabilities, and
Organization-wide Involvement

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COST OF QUALITY

Cost

Impact of Quality Level on Cost

Optimum

Sigma Quality Level

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Why We Need Six Sigma
Defects per Million
1,000,000

Cost of Poor Quality is
25% to 40% of Sales
Revenue

100,000
10,000

Average
Company

1,000
100
10

Best-in-Class
1

2

3

4

5

6

Sigma Quality Level Scale of Measure
The Basic Objective
7

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7


What is six sigma?
Six Sigma
Sigma Value

Faults (or event)
Per million opportunity

Yield
%

1

691462 30.85

2

308538 69.146

3

66807 93.319

4

6210 99.379

5

233 99.9769

6

3.4 99.99966
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INPUTS
( Sources of Variability)
People
Material

PROCESS
ACTIVITY
PROCESS
ACTIVITY

OUTPUTS
( Measures of Performance)
Perform a service

Equipment
Perform a product

Policies
Procedures
Methods

A Blending of
Inputs to
Achieve the
Desired Outputs

Environment

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Complete a task


Scrap = 1
i/p = 100

Scrap = 2

Scrap = 3

99
Extrude

97
Press

Scrap = 1
94

Trim

o/p = 93
Inspect

Rework = 8

Rework = 11

2

3

Stage

1

Logistic
Yield

99/100 = 99%

97/99 – 98%

94/97= 97%

93/94 = 99%

First
Time
Yield

99/100 = 99%

89/99 = 90%

83/97 = 88%

93/94 = 99%

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4


THE IMPROVEMENT PROCESS
Logistic yields compared with first-time quality
capabilities of a multi-stage stage.
Logistic Yield = ( good output/input) x 100
First Yield = [(N – W) / N] x 100
• Overrall logistic yiled = apparent yield = 93/100
= 93% ( nearly 3 Sigma process)
• Overall first time yield = real yield = (100 -1 -10 -14 – 1) / 100
= 74% (just over 2 Sigma process)

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Defect opportunities

Below is an example of counting the number of
defect opportunities in the production of wooden
chairs:
Company A is producing 5 orders for customer, each
order has one wooden chair item (5 units).
Opportunity per wooden chair item is clarified as
follows:

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Defect opportunities
• The chair was made by correct material?
(1 opportunity)
• Moisture content of wood is within the standard (1
opportunity)
• The chair was made in correct size?
(1 opportunity)
• The chair has no damage? (1 opportunity)
• Correct finishing is applied (1 opportunity)
• Correct packaging method is applied
(1 opportunity)
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Defect opportunities

Total number of defect opportunities
= Units x Opportunities
= 5 x 6 = 30 opportunities

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Problem solving & Process Improvement
Problem solving

Process Improvement

Identify the problem

Identify the process

Clarify the problem and
approach

Define flow of activities

Measure of the extend of
problem

Establish ownership measure

Analyze and determine causes

Probe the process

Develop Preventive action
plan

Develop process improvement

Implement to prevent
recurrence

Implement improvemennt

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Process Sigma
Value

Expectation of
Time without electricity
Per month

Aircraft landing/takeoff incidents in
each direct return flight

2

207 h

8 per 10 flights

3

45 h

24 per 100 flights

4

4h

25 per 1000 flights

5

9 min

9 per 10000 flights

6

8 sec

12 per million flights

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Why Six Sigma? – Dr. Deming on Process
“Eighty-five percent of the reasons
for failure to meet customer
expectations are related to
deficiencies in systems and
process… rather than the employee.
The role of management is to
change the process rather than
badgering individuals to do better.”
17

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DMAIC
D – DEFINE – XÁC ĐỊNH

M – MEASURE – ĐO LƯỜNG
A – ANALYZE – PHÂN TÍCH
I – IMPROVE – CẢI TIẾN
C- CONTROL – KIỂM TRA

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DEFINE

Define

• Key questions:
- what matters to customers?
- what defect are we trying to reduce?
- by how much?
- by when?
- what is the current cost of defects?
- who will be in the project team?
- who will support us to implement this project?
• TOOLS:
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PROJECT CHARTER
PARETO CHART
QFD

KANO ANALYSIS
PROCESS FLOW DIAGRAM

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Measure

MEASURE
• Key question
-

What is the process? How does it function?
Which Output affect CTQ’ s most?
Which Input affect Output CTQ’ s most?
Is our ability to measure/detect sufficient?
How is our current process performing?
What is the best that the process was designed
to do?
• TOOLS:
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FISH BONE
HISTOGRAM
NORMAL DISTRIBUTION

PROCESS FLOW DIAGRAM
CONTROL CHART
MSA
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Analyze

ANALYZE

• Key question
Which Input actually affect our CTQ’ s most?
By how much?
Do combination of variables affect outputs?
If an Input is changed does the output really change in
the desired way?
- How many observations are required to draw
conclusion?
- What is the level of confidence?
-

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Analyze

ANALYZE

• TOOLS:
- FIVE WHY

- TEST FOR NORMALITY (DESCRIPTIVE
STATISTICS, HISTOGRAMS)
- ANALYSIS OF VARIANCES (ANOVA) FMEA
(FAILURE MODE & EFFECT ANALYSIS)
HYPOTHESIS TESTING METHODS –

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Improve

IMPROVE

• Key question
- Once we know for sure which Inputs most effect our
Outputs, How do we control them?
- How many trials do we need to run to find and confirm
the optimal setting/procedure of these key Input?
- Who should the old process be improved and What is
the new process?
- How much have Defect Per Million Opportunities
(DPMO) decreased?

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Control

CONTROL

• Key question
- Once defects have been reduced, how do we ensure
that the improvement is sustained?
- What system need to be in place to check that the
improved procedures stay implemented?
- What do we set up to keep it going even when things
changes?
- How can improvements be shared with other relevant
people in the company?

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Control

CONTROL
• TOOLS:
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PROCESS FLOW DIAGRAM
CONTROL CHART
CONTROL PLAN
CHECK SHEET

78.35
78.3
78.25

78.2
78.15
78.1
78.05
78
77.95
77.9
77.85
77.8

Series4
Series5
Series6
Series7
Series8
Series9

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