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Lean Six Sigma Program

Develop Both Value Stream Leaders and Six Sigma Green Belts While Transforming Your Organization

Executive Overview - Lean, Lean Sigma, Lean Six Sigma - How Do They Work Together?

One of the common questions we have been asked by leadership from the hundreds of companies/organization we work with is:

"How do we integrate Six Sigma and Lean?" or "We have implemented Six Sigma, how will lean fit in or vice versa?"

The first thing we must establish is what is Lean and what is Six Sigma and of course depending on who you talk to the definitions may vary. So, let's look at the purest definitions and then try to establish the best way to approach both of these concepts.

What is Lean?

Lean is a way of thinking about how you should run your business - it is not a tool. The lean perspective focuses on the customer and what the customer feels is 'value' (not what the company supplying the service or product feels is value). Once this is done and the value and non-value have been identified throughout the entire 'system' then the next step is to understand how to remove the non-value properly to make your service or production activities flow to the client or customer. Properly is the key. You need a detailed implementation plan which will move you toward a future state and identifies the tools required, where they are required, when they are required and who is responsible to applying these tools and making the transformation from current state to future state. Without this plan, companies will end up making 'point' improvements and likely creating what we call 'exciting chaos'. The ultimate goal is to improve your bottom line and customer satisfaction by increasing responsiveness to the client/customer, while at the same time, reducing cost and increasing quality.

What is Six Sigma?

Six Sigma is a very effective analytical tool for eliminating or reducing variation throughout the value stream. And without reducing variation, it is impossible to have flow. In order to effectively utilize this skill and tool, there must be a well-defined future state implementation plan. Without this plan, the six sigma experts will not have a clear idea what the overall plan or direction is for their organization and they won't know what impact their efforts will have on the 'system' - they will only be limited to knowing they reduced the variation in that 'point' which someone identified needed to be fixed.

Keep in mind that most activities, within a value stream (both service, administration and production environments), can be classified as 'non-value'. So chances are, that when you assign a Six Sigma expert to 'fix' a problem and reduce the variation, you are putting them onto a problem area that is either going to be replaced or altered in order to establish the new Future State with more flow and less 'waste'.

The ideal way to optimize the efforts of your experts in both the Lean field and the Six Sigma field, and to not 'waste' time, energy and money, is to have them work together for the improvement of the flow of the entire 'system'.

Here is the simple solution

Use the thinking of Lean and the primary tools of Lean such as Enterprise Value Stream Mapping ™ to establish the future state implementation plan. Once you have this plan and have determined the tools you need to utilize throughout the plan and where you need to utilize them, then you can focus the Six Sigma experts in the right places.

The result is, the Six Sigma pros now are part of the strategy and direction of your company. They will naturally gain a sense of pride from the fact they are part of the overall transformation and that they are a contributor to the overall success of the organization. The results to the bottom line and to customer satisfaction indicators from their efforts are now maximized for organization. No longer are the Six Sigma professionals working in isolation or in areas that can only demonstrate 'point' improvements - they are an integral part of the future success of the company.

Introduction

Lean is simply about creating more value for customers by eliminating activities that are considered waste. Any activity or process that consumes resources, adds cost or time without creating value becomes the target for elimination. Lean, when implemented properly, will determine what tools you need, where you need them and when you need them (sequence of application). Six Sigma is a critical analytical tool used to reduce variation and is a prime tool invariably necessary in order to make the process 'flow' from end to end.

One of the important aspects of Lean is the focus on 'system-level' improvements (as opposed to 'point improvements'). It's this system-level work that dramatically improves your bottom line results.

Lean Advisors Inc. LEAD® currently trains and works with a wide range of organizations across North America, including healthcare (hospitals, laboratories), aerospace, automotive, food processing, job shops, equipment refurbishing, mining, medical, high technology, distribution, both in production and office or administrative processes. Lean principles plus Six Sigma can be successfully applied in any industry or business situation.

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The Lean Six Sigma Program

By following our Lean Six Sigma Program, you can expect to realize immediate positive results from implementing Lean the 'right way' and applying Six Sigma effectively.

Results by Industry:

_Aerospace And Defense

_Lead-Time

_Product Development

_28 to 16 months

_340 to 160 days

_23 to 11 days

_Production

_12 to 8 weeks

_On Time Delivery

_30% to 100%

_Inventory

_Turns

_2.7 to 4.1

_Travel

_Distance

_45% Improvement

_Changeover

_80% Improvement

_240 to 9 minutes

_Direct Labor

_31% reduction

_22-17 people (23% reduction)

_Space

_40% reduction

_WIP

_$6 Million - $2.9 Million

_Defects

_455 to 150

_Custom Manufacturing

_Inventory

_On Hand Inventory

_50% reduction in 18 months

_Percent of Sales

_20% to 5% (Goal is 2%)

_Electronics

_Lead-Time

_8 weeks to 1 day

_338 to 108 days

_23 to 12 days

_Productivity

_100% Improvement

_Processing

_69 to 46 hours

_1180 to 778 hours

_WIP

_260 to 7 units

_1100 to 700 units

_Defects

_455 to 122 units

_Direct Labor

_23-17 people (23% reduction)

_Space

_41% reduction

_Food Processing

_Inventory

_On Hand Inventory

_40-50% Reduction

_Inventory Turns

_Doubled

_Finance Charges

_Reduced

_Space

_Storage Costs

_Reduced

_Transportation

_Transportation Costs

_Reduced

_Lead-Time

_114 to 5 days

_Healthcare

_Productivity

_MRI Processing

_20% increase in patients / day

_Wait Time

_X-Ray

X-Ray techs waiting for up to 30% of the time, now they can use their time more efficiently and service patients faster.

_Lab

Reduced lead-time for test results from 8 hours to between 2-3 hours by decreasing batches and eliminating waste activities.

_Motion

_Delivery Time

Delivery personnel were spending most of their time walking (up to 50%) to deliver specimens. A new schedule significantly reduced motion waste.

_Reliability

_Equipment

Improved equipment uptime - On average 3 pieces of equipment down per week. Now through the use of TPM, they haven't had any down time in 8 weeks.

_Space

Using 5S, one lab freed up enough space to add three more needed stations without increasing existing floor space.

_Processing

One area doubled their processing volume with marginal increase in staff and has sustained it for the last 6 months.

_Rework

Originally 66% rework - Now virtually none.

_Job Shop

_Space

_Floor Space

_40% reduction

_Lead-Time

_28 to 16 weeks

_Productivity

_Last 3 Years

_10%, 20% and 12% Increase

_Medical Equipment Manufacturer

_Process Time

_27% reduction

_Lead-Time

_50% reduction

_Travel

_56% reduction

_Space

_25% reduction

_Processing

_39% reduction

_Direct Labor

_31% reduction

_Capacity

_52% reduction

_Metals And Mining

_Lead-Time

_Assembly

_209 to 30 days

_Product Design

_134 to 83 days

_Production

_222 to 65 days

_Travel

_Distance

_2000 to 500 ft

_Repair

_Ontime

_56% to 76%

_Office And Administration

_Lead-Time

_Budget Process

_30% reduction

_Change Notices

_Paper Flow

_28 to 7 days

_Repair And Overhaul

_Lead-Time

_40% reduction in 3 Months

Program Overview

Our goal will be to complete your Future State within six months of initiating the process while certifying some select participants as Six Sigma Green Belts and some others as Value Stream Leaders.

Phase 1 - Lean Six Sigma Assessment

One of the most obvious questions a company can ask when thinking about using Lean to transform their organization is - "Where do we start?" The second question should be - "How do we do it the 'right' way?" The key to success is to have an effective plan specifically for their situation and environment. Without an effective strategy/plan to guide them, they know they will either fail totally or at least not maximize their potential.

The Assessment by one of our Lean Experts is done on-site. We meet with your leadership, discuss the current situation, the current strategy/direction, and then we tour your Value Streams. We assess your present state including leadership, staff and operations (both office and floor, if applicable). From the information gathered throughout the day, we then work out a Future Plan/Strategy on how to effectively implement Lean and Six Sigma.

Agenda

» Introduction - with management representatives from your company
» Overview of clients' business
» Discuss any critical issues such as crisis or upcoming industry changes that may impact them
» Lean Advisors Overview: Methods and Style, Expertise, and Examples of previous results
» Review expectations of the day, the agenda and goals for the end of the day
» Tour - with a small group of management
» Walk the entire Value Stream(s) - 'see' the flow
» Discuss activities with appropriate reps from each area as we move along
» Continuous dialogue with supervisors, leads and where possible line staff

Evaluation of Current State - with the management reps

» Discuss - actual Value and Waste
» What you 'saw' - technically and culturally
» What we 'saw' - technically and culturally
» Summarize current state

Lean Six Sigma Implementation Plan - with the management reps

» What tools are required
» What sequence the tools should be applied
» Where the tools need to be applied
» Who needs to be involved and when
» Tentative schedule for roll out of the Plan/Strategy

Phase 2 - Introduction, Enterprise Value Stream Mapping ®, Future State Implementation Plan

Introduction To Lean provides participants with the basic Lean concepts and principles. This session also incorporates a hands-on waste-finding exercise for the shop or office floor as well as a simulation that demonstrates the power of one-piece flow (as opposed to batch production). These exercises show your team how the tangible benefits of Lean practice can leverage your organization's future success. Throughout the day, discussions will take place around topics that focus on the participants' situation to demonstrate how Lean works in their environment and how the thinking and tools adapt to their situation.

Enterprise Value Stream Mapping ® takes place immediately after the Introduction To Lean and teaches your team how to identify and map Value Streams in both the Current and Future State (includes the information/communication flows as well as the material flows). This is the most powerful tool in the Lean toolbox for starting your implementation 'The Right Way'. You will learn about Enterprise Value Stream Mapping ® by combining two approaches - the case study method and a real time shop or office floor mapping. Your team will be actively involved in applying what they are taught as they learn it. Using the knowledge and techniques directly on an actual process during the workshop is incredibly motivating. It gives team members the confidence and ability to continue working with Lean long after a workshop is completed.

After finishing the Enterprise Value Stream Mapping ® workshop, you will have created a Future State Map that looks 6 months down the road at what the organization can achieve. It is this Future State that highlights the waste in the 'system' that can be eliminated or reduced. You will also learn to calculate lead-times and compare them to actual processing times. In most cases, the actual processing time is less than 10% of your present lead-time.

By 'seeing' that the amount of 'waste' is actually 90%, the team is then convinced that they have an opportunity to improve. The next step is to develop the 'Future State Implementation Plan', which establishes the correct and most effective tools to remove the 'waste' in your system. It is the complete strategy for your organization to move forward with the transformation.

During this exercise, the participants who have been selected to become Six Sigma Green Belts will identify the projects they will be working on throughout their training. These projects will have a direct impact on the Lean transformation and the end result of attaining a Future State for the entire process - 'system'. In this way the Green Belts are an integral part of the Value Stream and their efforts are integral part of the success of the team - this is called 'focused' Six Sigma implementation.

The Value Stream Leaders will be responsible (and accountable) for the entire transformation of the system or end-to-end process from a Current State to a Future State as outlined in the Implementation Plan in this phase.

**Phase 3a - Implementation - Value Stream Leader

The Future State Implementation Plan lays out what the tasks are, when the tasks need to be completed, which tools to use and when to use them as well as who is going to be responsible for them. Without this step, companies will fall into the trap of 'grabbing low hanging fruit' or completing 'point improvements'. Not having a properly executed Future State Implementation Plan has been one of the major reasons for companies failing or at least not reaching their potential.

This phase includes a number of follow-up days to properly structure the Implementation Plan and ensure the Plan is completed.

**Phase 3b - Six Sigma Green Belt Certification

From the Implementation Plan the areas requiring Six Sigma analysis are identified. The candidates selected for Green Belt Certification (chosen from the Value Stream group and have completed Phase 2 with the group) will then be given the responsibility to tackle these projects and report back to the Value Stream Leader and Value Stream group on their progress. It is critical that these projects be an integral part of the Future State so everyone involved understand the direction and goal of completing the Future State. It gives the Six Sigma Green Belts a solid purpose and a role in transforming the organization - sense of pride and pressure to perform.

Six Sigma Green Belt

1st Session - Overview of Six Sigma Phase

» DMAIC Methodology Overview
» The Impact of Six Sigma to The Organization
» The Six Sigma Language
» Project Definition
» Project Charter
» Developing a Business Case
» Chartering a Team
» Defining Roles and Responsibilities
» Gathering Voice of the Customer, Support for Project
» Translating Customer Needs into Specific Requirements (CTQs)

2nd Session - Define Phase

» Process Mapping (use value stream map)
» Data Attributes (Continuous Versus Discrete)
» Measurement System Analysis
» Data Collection Techniques
» Data Collection Plan

3rd Session - Measurement Phase

» Statistical Process Control (SPC) Overview
» Understanding Variation
» Measuring Process Capability
» Calculating Process Sigma Level
» Visually Displaying Baseline Performance
» Visually Displaying Data (Histogram, Run Chart, Pareto Chart, Scatter Diagram)
» Value-Added Analysis
» Cause and Effect Analysis (a.k.a. Fishbone, Ishikawa)
» Affinity Diagram
» Data Segmentation and Stratification
» Verification of Root Causes
» Determining Opportunity (Defects and Financial) for Improvement

4th Session - Analyze Phase

» Brainstorming
» Multi-Voting
» Quality Function Deployment (House of Quality)
» Selecting a Solution
» Failure Modes and Effects Analysis (FMEA)
» Mistake Proofing Your New Process
» Piloting Your Solution
» Implementation Planning
» Developing a Process Control Plan
» Documenting the Process
» Control Phase Review

** Optional Strategy - Phase 3a and 3b

1) While the Six Sigma Green Belts were working on their projects, we have the option of having the Value Stream Leaders continue with the Implementation Plan and applying other necessary Lean tools. Much of the decision to have the group work on other tools while the Green Belts are working on their projects depends on the organizations resource availability - the client and Lean Advisors will determine this between them.

2) The Value Stream Leader and the Green Belt person could be the same individual and hence will receive their Six Sigma Green Belt Certificate upon completion of the Green Belt program and also receive their Value Stream Leader Certificate upon completion of the Future State Implementation.

Either way the LEAD® advisor will work closely with your team (both the Value Stream projects and the Six Sigma tools) on specific issues or roadblocks, enabling success at each step of the way. Your specific Future State Implementation Plan, outlining the activities and the other Lean tools you need to apply in this phase, will determine the actual times for our involvement.

Goals of the Program

» To transform the organization's thinking and to bring the company into a more competitive, more profitable position. When we change the 'thinking' and create end-to-end 'system' changes, then, and only then, will a company see the expected results to their bottom line, flexibility and client satisfaction.
» To have completed the transformation of at least one Value Stream from Current State to Future State.
» To develop the Value Stream Leaders so they will be confident and knowledgeable to lead the transformation in other areas. They have learned as well as applied their learning - they are practitioners.
» To develop and certify Six Sigma Green Belts that will be able to use their knowledge and expertise throughout the organization.

They have had to deal with all the challenges both technical and cultural and this will allow them to successfully lead the other value stream improvements.

» To transfer the knowledge by teaching, applying and adapting the concepts simultaneously
» Demonstrate and apply the correct strategy and proper implementation of the tools to maximize success and meet expectations

At the end of this program, the Value Stream Leaders and Six Sigma Green Belts will be confident and knowledgeable to lead the transformation in other areas. They have learned as well as applied their learning - they are practitioners. They have had to deal with all the challenges both technical and cultural and this will allow them to successfully lead the other value stream improvements.

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