Lean Six Sigma

LEAN SIX SIGMA
Phan Quốc Khải - 080834
Nguyễn Anh Khoa - 080835
Lương Ngoc Lan - 080838
Presentattion Group:
Agenda

Lean Six Sigma Overview
–
Lean
–
Six Sigma
–
Lean & Six Sigma

Lean Six Sigma in Software Development
(Combining Agile – Lean & Six Sigma)

Transactional Six Sigma
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Seminar Software Quality Management
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Lean Overview
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What is Lean

Lean is a strategy that focuses on the
elimination of waste so each step in a
process creates value for the customer.


Lean enhances efficiencies, reduces
waste, and improves profit margins. It
is a continuous.
(Source: “What is lean?” from />8/29/2011
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The Lean Principles [1]
1. Determine value – what does the customer want?
2. Use the pull system – to avoid overproduction.
3. Institute one-piece flow – make the work flow.
4. Level out the workload – to the rate of customer demand.
5. Stop and fix problems – immediately to get quality.
6. Standardize – to support improvement.
7. Use visual controls – so that no problems remain hidden.
8. Use only reliable technology – that support the people and the process.
9. Compete against perfection – not competitors.
(Lean Six Sigma – Chap 2 – page 31)
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Lean Production V.S. Mass Production
From: If you build it, they will come (Mass Production)
To: When they come, build it fast (Lean Production)
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7 Kinds of Waste

Inventory - unneeded stock or supplies


Motion - movement of staff and information

Overproduction - unnecessary tests

Overprocessing - filling out extra paperwork

Transportation -movement of patients or equipment

Rework/Correction - paperwork, med errors

Waiting - delays in diagnosis and treatment
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Lean Process
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5S
5S
Sort
Sort
Straig-
hten
Straig-
hten
Shine
Shine
Standa-

rdize
Standa-
rdize
Sustain
Sustain
The Five S’s
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Improved material handling
Improved material handling
Inventory reduction
Inventory reduction
Lower unit costs
Lower unit costs
Efficient scheduling
Efficient scheduling
Reduction in lead time to the customer
Reduction in lead time to the customer
Personnel and customer satisfaction
Personnel and customer satisfaction
Benefits of Lean
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Six Sigma Overview
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What is Six Sigma


Nowadays, Six Sigma is considered as a systematic method of eliminating defects (anything that does not
conform to customer expectations) from a product or process.
(Source: “What is lean?” from />
In statistic, 6 sigma simply
means 3.4 defects over one
million opportunities.
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Define Six
Sigma
Charter
Define Six
Sigma
Charter
Measure
Measure
Analyze
Analyze
Improve
Improve
Control
Control
Six Sigma DMAIC Model
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Reduction in defects
Reduction in defects

Decrease in costs
Decrease in costs
Improvement in customer satisfaction
Improvement in customer satisfaction
Reduction in process variation
Reduction in process variation
Improvement in process capability
Improvement in process capability
Benefits of Six Sigma
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Lean Six Sigma Overview
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What is Lean Six Sigma

Lean Six Sigma is a methodology that maximizes shareholder value by achieving the fastest rate of
improvement in customer satisfaction, cost, quality, process speed and invested capital

The fusion of Lean and Six Sigma are required because:
–
Lean cannot bring a process under statistical control
–
Six Sigma alone cannot dramatically improve process speed or reduce invested capital
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Why Lean Six Sigma


2 sources of cash flow
–
External Customer: give money for products.
–
Internal Processes: save money by cutting unnecessary works or wastes.
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Lean Six Sigma Principles

Specify value in the eyes of the customer.

Identify the value stream and eliminate waste / variation.

Make value flow smoothly at the pull of the customer.

Involve, align and empower employees.

Continuously improve knowledge in pursuit of perfection
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Which Business Function Needs Lean Six Sigma?
As long as there is a process that produces an output, whether it is a manufactured product, data, an invoice,
etc…, we can apply the Lean Six Sigma Breakthrough Strategy!!!!
6 Sigma
Methods
MFG.
DESIGNSERVICE

PURCH.
MAINT.
ADMIN.
QA
Marketing
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Lean Six Sigma –
Two Complementary Approaches

Six Sigma…
•
Emphasizes need to recognize opportunities and eliminate defects
•
Recognizes that variation hinders ability to reliably deliver high-quality services
•
Requires data-driven decisions and incorporates a comprehensive set of standard tools for effective problem solving
•
Provides a highly prescriptive cultural infrastructure effective in obtaining sustainable results (continuous improvement through an empowered
workforce)

Lean…
•
Focuses on maximizing process velocity
•
Provides tools for analyzing process flow and delay times at each activity in process
•
Removes non-value added steps in process
•

Provides a means for quantifying and eliminating the cost of complexity
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Opportunities Both
Within and Between Process Steps
Step A
Step B
Step C
Customer
Lean
Lean
Six Sigma
Six Sigma
A Three Step Process
Value-Adding
Transformations
Occur WITHIN
Process Steps
Value-Adding
Transformations
Occur WITHIN
Process Steps
Material and
Information
Flow BETWEEN
Process Steps
Material and
Information
Flow BETWEEN

Process Steps
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Lean Six Sigma Objective
•
Shift Process Average
•
Reduce Process Variation
•
Robust Products and Processes
Six Sigma Objectives
Lean Objectives
•
Improve Process Flow
•
Reduce Process
Complexity
Reduce:
•
Waste
•
Non-Value Added Work
•
Cycle Time
Lean Six Sigma Improves Quality, Cost, and Delivery
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Benefits of Lean Six Sigma


Achieve total customer satisfaction and improved operational effectiveness and efficiency
–
Remove wasteful/non-value added activities
–
Decrease defects and cycle time, and increase first pass yields

Improve communication and teamwork through a common set of tools and techniques (a
disciplined, repeatable methodology)

Develop leaders in breakthrough technologies to meet stretch goals of producing better
products and services delivered faster and at lower cost
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Reference:
Combining Lean, Six Sigma and Agile: Why, and How?
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