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  • Copyright 2002 Consensus Strategies, LLC. All Rights Reserved.

    2002 Genesis Group LLC 1

    6 Copy right 2002 Consensus Strategies, LLC. All Rights Reserv ed. 2002 Genesis Group LLCCopyright 2002 Consensus Strategies, LLC. All Rights

    Reserved.2002 Genesis Group LLC

    6

    Driving Customer Satisfaction with Lean Six Sigma

    Bob BrooksGenesis Group

  • Copyright 2002 Consensus Strategies, LLC. All Rights Reserved.

    2002 Genesis Group LLC 2

    6

    What is Six Sigma?What is Lean?

  • Copyright 2002 Consensus Strategies, LLC. All Rights Reserved.

    2002 Genesis Group LLC 3

    6Copyright 2002 Consensus Strategies, LLC. All Rights

    Reserved.2002 Genesis Group LLC

    6

    The Two Sides of Six Sigma

    Six Sigma

    Measure Philosophy

  • Copyright 2002 Consensus Strategies, LLC. All Rights Reserved.

    2002 Genesis Group LLC 4

    6Copyright 2002 Consensus Strategies, LLC. All Rights

    Reserved.2002 Genesis Group LLC

    6

    Six Sigma Philosophy

    Customer Focus

    EmployeeEmpowerment

    DataDriven

    Decisions

    ProcessOrientation

  • Copyright 2002 Consensus Strategies, LLC. All Rights Reserved.

    2002 Genesis Group LLC 5

    6Copyright 2002 Consensus Strategies, LLC. All Rights

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    6

    The Six Sigma Stairway

    Customer Requirements

    Measurement

    Employee Participation/Empowerment

    Exploiting Technologies

    Supplier Partnerships

    CustomerSurvey

    Total Cycle Time ReductionDefect Elimination

    1

    10

    100

    1000

    10000

    100000

    1000000

    2 3 4 5 6 7

    100,000

    10,000

    1,000

    100

    10

    0

    Baseline

    Entitlement

    Benchmark

  • Copyright 2002 Consensus Strategies, LLC. All Rights Reserved.

    2002 Genesis Group LLC 6

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    6

    enable dives

    Strategy and Process

    Processes

    enables drives

    Strategy

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    The Process Perspective is:

    A disciplined method and approach to focus on business processes.

    A horizontal view of the business. A means of improving customer satisfaction

    Process Improvement

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    6

    Customers Drive Process

    Input

    Defects Timeliness Cost

    Processfor each step: Defects Cycle Time Costs

    Output

    Defects Timeliness Cost

    CustomerSatisfaction

    5-Ups

    MeasureAct

  • Copyright 2002 Consensus Strategies, LLC. All Rights Reserved.

    2002 Genesis Group LLC 9

    6Copyright 2002 Consensus Strategies, LLC. All Rights

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    6

    Saving Big Blue

    I dont know what platform support is, but let me answer your question very simply. If there is a key customer requirement, do it. Whatever this thing is - platform whatever - get it out of the way.

    Lou Gerstner

  • Copyright 2002 Consensus Strategies, LLC. All Rights Reserved.

    2002 Genesis Group LLC 10

    6Copyright 2002 Consensus Strategies, LLC. All Rights

    Reserved.2002 Genesis Group LLC

    6

    Six Sigma as a Measure

    3 Sigma 6 Sigma 3 SigmaProcess Process Process

    X

    LowerSpecification

    Limit

    Upper Specification

    Limit

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    2002 Genesis Group LLC 11

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    Reserved.2002 Genesis Group LLC

    6

    Sigma as a Measurement of Defects

    100K

    10K

    1K

    100

    10

    1

    2 3 4 5 6 7

    (66,810 DPMO)

    AverageCompany

    Best inClass

    Restaurant BillsDoctor Prescription WritingPayroll ProcessingOrder Write-upJournal VouchersWire TransfersAirline Baggage Handling

    Domestic AirlineFlight Fatality

    Rate

    IRS Tax Advice (Phone In)

    Sigma

    Poor

    (66,810 DPMO)

    (233 DPMO)

    (.43 DPMO)

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    6

    Six Sigma Improvement Model

    The DMAIC PROCESS

    Define Scope the problem

    Measure Gather Data

    Analyze Root Cause Data Analysis

    Improve Develop Solutions

    Control Maintain the Gain

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    6

    Improvement DisciplineImprovement Discipline

    Six sigma provides a systematic, logical approach to project management.

    -Document-Response plan-Control Charts- Institution-alize

    -Develop solutions-Select best solution-Pilot & Measure-Implement full scale

    -Analyze data & process-Use graphical & statistics to verify root cause(s)

    -ID key measures-Collect baseline data-Validate scope

    -Charter-ID 5-Ups- Stake-holders-Map the process

    ControlImproveAnalyzeMeasureDefine

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    6

    Six Sigma Steps and ToolsSix Sigma Steps and Tools

    Planning matrices Fishbone Pareto chart Histogram Run chart Scatter diagram Process capability measures Sampling plan Operational definition data collection plan Defect concentration diagram Check sheet Traveler sheets

    Process mapping Decision matrices Pughs method Requirements analysis How-how fishbones FMEA Error-proofing Cellular design Single piece flow systems Pull systems Process balancing Process piloting Force field analysis Gantt charts

    Define Measure Analyze Improve Control

    5-ups Molecule map Stakeholder matrix Communication plan Flow charts Process maps Value stream mapping Activity analysis

    Qualitative analysis Graphical analysis Data stratification Estimation Hypothesis testing Analysis of variance Regression analysis Datatransformations Multi-vari charts Box plotsCost/benefit analysis

    Statistical process control Corrective action planning Documented Procedures Training

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    6

    What is Lean?What is Lean?

    A process improvement methodology Based on principles developed at Toyota in the

    50s Focuses on reducing cycle time by:

    Reducing the seven wastes Using the lean toolbox

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    6

    Six Sigma and Lean Six Sigma and Lean

    How Theyre SimilarHow Theyre Similar

    Both methodologies: Emphasize focusing on the

    customer Involve empowering

    employees Stress continuous

    improvement Use basic quality tools

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    6

    Six Sigma and Lean Six Sigma and Lean

    How Theyre DifferentHow Theyre Different

    Six Sigma: Focuses on defect

    reduction Emphasizes analysis Is process focused Relies

    heavily on statistics Emphasizes

    implementation infrastructure

    Is more client-centric

    Lean: Focuses on cycle time

    reduction Emphasizes solutions Is value stream focused Is more consultant

    driven Tends to be

    implemented in phases by tool

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    6

    Lean ConceptsLean Concepts

    Pull Systems Single Piece Flow Continuous

    Improvement Muda Value Stream

    Customers and Outputs

    Sales

    Design

    Ship

    Prod

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    6

    The Seven WastesThe Seven Wastes

    Over-production

    Waiting

    Moving objects

    Moving people

    Inventory

    Over-processing

    DefectsProduction

    Inspection

    Repair

    Womack and Jones, Lean Thinking

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    6

    Value - Add ActivitiesValue - Add Activities

    The answer to all 4 questions must be yes for a step to be value-add.

    Does the customer care?

    Does it change the thing?

    Is it done right the first time? Is it required by law or regulation

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    6

    Common Lean ToolsCommon Lean Tools

    Seiri (Organization) Seiton (Orderliness) Seiso (Cleanliness) Seiketsu (Standardized

    cleanup) Shitsuke (Discipline)

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    28%17%

    12%0%6%37%

    100%% Total241510053286Total

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