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LEAN MANUFACTURING & SIX SIGMA Guide to Business Improvement Tools.

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Presentation on theme: "LEAN MANUFACTURING & SIX SIGMA Guide to Business Improvement Tools."— Presentation transcript:

1 LEAN MANUFACTURING & SIX SIGMA Guide to Business Improvement Tools

2 Contents  Overview of LEAN Manufacturing  Overview of Six Sigma  PDCA Wheel  Six Sigma Roadmap  Tool selection guide

3 LEAN Manufacturing Henry Ford production line to Toyota Production System Methodology spread across industries and countries Production activity that is not important to the customer is seen as waste, and to be reduced / eliminated. Focuses on optimising ‘production flow’. Converts ‘push through to sell’ production to ‘pull through by customer demand’ production.

4 PDCA Wheel A foundation tool of LEAN to explain to teams how to make process improvements. Plan the improvement Do the trial Check the results Action the new standard Once the new standard is locked in, further improvement activity can occur

5 Six Sigma ( 6 σ ) Created by Motorola in the 1970’s in response to quality criticisms Heavy on Statistical Process Control and Hypothesis testing Focus is to reduce defects by reducing process variability Quality side tools Acceptance side tools A 6σ process is % accurate (Between three and four defects per million opportunities) Excellence = Quality x Acceptance

6 Page 6 Six Sigma DMAIC Roadmap A nalyse I mprove M easure C ontrol M Stakeholder check-in  M Stakeholder check-in  13 Identify & Select Potential Solutions 8 Develop data collection plan around key x’s; 12 Practically validate root causes 11 Graphically & Statistically validate root causes Rev v10 A $$ Required Financial review (BCS entry)$$ D Stakeholder check-in  Charter Confirmed D Stakeholder check-in  Charter Confirmed 6 Confirm Current Process Performance 5 Validate Measurement System 7 Identify key x’s & Quick wins 2 Project Selected and Project Leadership Team Selected D efine I -1 Stakeholder check-in  Q-A Solutions Approved I -1 Stakeholder check-in  Q-A Solutions Approved 16 Demonstrate final capability and control plan effectiveness 18 Share Learnings; Replication, Report, Poster$$ 19 Celebrate Improvements and Recognise Team Start Project Cycle time 4 Align Team & confirm Project Charter BeltPO PL or Mgmt Primary Responsibility of Check and Learn from previous work 17 Final sign off by Process Owner 15 Implement Approved Solution(s) and Control Plans 14 Develop Implementation Plan, Control Plans and process control system I -2 Stakeholder check-in  Implementation Approved I -2 Stakeholder check-in  Implementation Approved End Project Cycle time 10 Collect data around key x’s A Stakeholder check-in  A Stakeholder check-in $$ A. Project Blitzed added to BCS Pipeline$$ 9 Implement & Control Quick Wins 1 Business Case and draft Charter into Project Pipeline in BCS C. End Investigation Cycle time Cycle time 1 B. Project Kickoff Move to Investigation Phase Project Completed

7 Aligning Commitment towards Excellence (ACtE) supports all stages of the process! Control Improve Analyse Measure Define Six Sigma / Lean ACtE, VOC, CTQ, SIPOC, In/Out, Project Charters Project Chartering, Value Stream, Theory Of Constraints, Yield, Rolled Throughput Yield ACtE, MSA,XY, FMEA, Process Map, Data Collection Plan Interview & Observation, 5S, Time & Motion, VSM VA / NVA, Flow Charting, Base Line Analysis, Spaghetti Diagrams. ACtE, Hypotheses testing, Multi Vari, Control Charts, FMEA ACtE, DOE, BOA, Training, Change Mgmt ACtE, Control Plans, SOP, SPC, Control Charts, Action Plans Takt Time, Multi Cycle Analysis, Root Cause ID, Defect Analysis SMED, Quick Changeover, Load Balancing, Kanbans, Simulation Multiskilling, Mistake Proofing 5 S Discipline, Standard Work, On time delivery, Perform to Takt Time Lean Tools to Use Confirmed Charter Mobilised Team Engaged Stakeholders Process Characterised Data Validated Capability Analysis on Y output Uncover Root Causes Solutions Selected Implementation Plan Committed Stakeholders Transition to Owner Process Control System Knowledge Sharing Desired Outcomes Six Sigma Tools to Use

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