4/23/2007 1

Lean Six Sigma (LSS)

April 2007

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Agenda

Background of Lean Six Sigma (LSS) Brief Tutorial of LSS LSS Program Status

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Lean Six Sigma Program

66σσ

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LSS Background

• New Director – 2005• Used Lean Six Sigma on previous assignments• Investigate use of LSS for process improvement

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Approach for FY06 Program

Option 1:Cultural Paradigm Shift-Entire Organization

Option 2:Targeted Organizations, Processes, &

ProjectsIAD SID ADET

DIRNSA

IAD SID ADET

DIRNSA

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LSS Project StructureTop Leaders

Champion #1 Champion #3Champion #2

Team Lead Team LeadTeam Lead

Blackbelt BlackbeltBlackbelt

Team members/Greenbelts Team members/ GreenbeltsTeam members/Greenbelts

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What is Lean Six Sigma??

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Structured methodology Customer focusedData collection and analysis Proven tools and techniques

Producing: •Reduced cycle time•Optimized resources •Elimination of waste

Simply Put:Lean Six Sigma is a Business Model

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Business Model Evolution

Time

Org

aniz

atio

nal &

Pro

c ess

Mat

urity

TQM – establish culture of process improvement; Learn basis process tools.

ISO 9000– Define & document processes (they don’t have to be good processes… just defined & documented)

CMMI – Determine if the defined processes are the right processes. Compare processes to CMMI business model.Define the missing processes. USE EXISTING CMMI PROGRAM

Lean Six Sigma – Carefully select critical,processes to target for improvement using Lean Six Sigma techniques

-Malcolm Baldridge-Business Process Re-

engineering

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PAST EFFORTS•Not mission driven•Leadership not involved•Customers’ needs not known•Projects focused internally•Teams not focusing on Mission critical problems•Training focused on team building•Seen as “Flavor of the month”

LEAN SIX SIGMA•Leadership selects goals & projects•Leadership is involved & committed•Customer focused: Projects driven from customer needs•Training is analytical & process driven•Decisions are data driven•Statistical software available for number crunching•Build on lessons learned from previous efforts

What’s different this time?

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Lean & Six Sigma TenetsLean

Waste reductionValue streamInternally focusSpeed based analysisOperational metricsSpecialists: Lean MastersContinuous Improvement

Six SigmaVariability reductionCustomer focused Project basedProject metricsSpecialists: Greenbelts, Blackbelts (BB), Master BBBreakthrough improvement

Efficiency

Effectiveness

Combining Lean and Six Sigma optimizes focus on both the process and on the customer.

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Affinity DiagramsCause & Effect DiagramsCharter Control ChartsCritical to Quality Tree (CTQ)Design of Experiments (DOE)FMEAFrequency PlotsGage R&RGantt Charts

Goal TreesPareto ChartsPrioritization MatrixProcess CapabilityRegression SamplingRolled Throughput YieldRun ChartsScatter PlotsSIPOCVoice of the customer

Lean Six Sigma Tools

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Lean Six Sigma –2 Key Points to Remember

1. Lean Six Sigma Model: 5 step process called DMAIC :

Define, Measure, Analyze, Improve, Control

2. Six Sigma Measurement: Your process is so good that errors only occur 3.4 times for every million opportunities

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Charter the Charter the projectproject

Develop the

Charter

Develop the

ProjectPlan

DrawHigh-Level

ProcessMap

DataCollection –Voice of theCustomer

VOC

DataCollection –Performance

Data

Set TargetsAnd

SpecificLimits

CalculateProcess Sigma Level

Analyze Dataand

Process

GenerateHypotheses

AboutCauses

VerifyKey RootCauses

GenerateSolutions

Measure theMeasure theproblem and problem and understand understand requirementsrequirements

AAnalyze IImprove CControlIdentify rootIdentify rootcauses andcauses and

solutionsolutionalternativesalternatives

Identify solutionIdentify solutionalternatives; alternatives;

plan and implementplan and implementsolutionssolutions

Validate results,Validate results,refine solutionrefine solution

and transition toand transition toProcess ownerProcess owner

SelectImprovement

Solution

TestSolution

DevelopPilotPlan

ImplementPilot andAnalyzeResults

CompleteImplemen-

tation

ImplementProcess

Management

Monitorand

ControlProcess

1. DMAIC:1. DMAIC: Foundation of LSS ModelDDefine MMeasure

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2. Sigma Concept

4 sigma:No hot water for 54

hours/year20,000 lost articles of mail

/ hourUnsafe drinking water for

15 minutes / day2 too short or too long

landings at major airports / DAY

5,000 incorrect surgical operations / week

200,000 incorrectly filled prescriptions / year

6 sigma:No hot water for 2

minutes/year7 lost articles of mail / hourUnsafe drinking water for

one-half second / day0.011 too short or too long

landings / day; or 4 too short/long landings per YEAR

3 incorrect surgical operations/ week

68 incorrectly filled Rx’s / year

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.

10 15 20 25 30 35 45 55Y= Y=+-

99.99966%

50%

84%

98%

VALUES (time):

Sigma Example

40

99.9%

50

=2.5σ

=3.5σ

=4.5σ

= 6σ

69% =1.0σ

Drive time to work

Nu

mbe

r of

tri

ps

25 minutes isAvg. time to work

5

500

Ask: How much time do I need to allow to be 50% certain of getting to work, 98% certain, 99.999666% certain?

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Why do Lean Six Sigma?

• Structured approach•….to solving problems

• Customer focused•…find out what is critical to them

• Reduce cycle time•….time, money, manpower, redundancy

• Use facts and data•…to make decisions

• Reduce variation•…to ensure a consistent, dependable service & product

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Lean Six Sigma Program Status

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Identified cycle timecycle time is the main issueTeams were surprised at ‘‘voice of voice of customercustomer’’Data analysisData analysis was eye-opening Significant behavior changesbehavior changesCapitalized on ““low hanging fruitlow hanging fruit””opportunities Identified critical spinspin--off projectsoff projectsInteraction & synergy synergy among the teams

““AhaAha’’ss!!”” from first LSS teams

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LSS Training

“Greenbelt” - team leaders & members, 5 days“Champion” – team champions, 1 day“WhitebeltWhitebelt” – all government personnel – 2 hours, on line