4 Why is Lean / Six Sigma Important to You Trend for many employers to implement process improvement techniques in the workplaceNeed to understand concepts in order to properly hire appropriate talentBuild appropriate competency models for trained professionals in your organizationHR’s role in implementing / enforcing the company’s culture (change management and communication)Toolkit to run your department more efficientlyLean / Six Sigma is not just for the shop floor!Best used for repetitive processes
5 So What? I am in HR! Hiring Cycle Time: The hiring cycle time is too long causing work-arounds, misclassifications, rework, and organizational frustrationAnalysis revealed that batch processing and undefined critical fields were causing most of the delaysData IntegrityThe employee information contained in the HR System of record (e.g. personal and personal and job related information) differs from Payroll informationResults in the inability to properly account for department headcount and the associated employee costs causing excessive rework to both Payroll and HR systems
6 So What? I am in HR! Employee turnover rate Job satisfaction issues (surveys)Management satisfactionPolicy deploymentHealth care costsSafety and compliance issuesEmployee exit analysisUniversity relations
7 What is Lean / Six Sigma? Lean Six Sigma Originally created at Toyota in the 1950’s (as Lean manufacturing)Focus is the elimination of waste in every area of production including customer relations, product design, supplier networks and factory management. Its goal is to incorporate less human effort, less inventory, less time to develop products, and less space to become highly responsive to customer demand while producing top quality products in the most efficient and economical manner possibleUse of quality improvement tools to solve difficult problemsA rigorous and a systematic methodology that utilizes information (management by facts) and statistical analysis to measure and improve a company’s operational performance, practices and systems by identifying and preventing defects and service-related processes in order to anticipate and exceed expectations of all stakeholders to accomplish effectiveness
8 When to use Lean vs. Six Sigma Lean tends to be used for shorter, less complex problems. Often time driven. Focus is on eliminating wasteful steps and practices.Six Sigma is a bigger more analytical approach – often quality driven – it tends to have a statistical approach. Focus on optimizing the important steps – reducing defects.Some argue Lean moves the mean, Six Sigma moves the variance. But they are often used together and should not be viewed as having different objectives.Waste elimination eliminates an opportunity to make a defectLess rework means faster cycle timesSix Sigma training might be specialized to the “quality” department, but everyone in the organization should be trained in Lean
10 In any process: Define value and everything else becomes waste! Principles of LeanFocus on effectively delivering value to your customerRespect and engage the peopleEliminating all types of wasteMaintain flowPull through the systemStrive for perfectionIn any process: Define value and everything else becomes waste!
12 Sample Tools Using Lean Thinking Sort, Set in Order, Shine, Standardize, and SustainJust-In-Time (JIT)Pull through based on customer demand instead of pushing parts through production based on projected demandKaizenA strategy where employees work together proactively to achieve regular, incremental improvements in the manufacturing processKanbanA method of regulating the flow of goods both within the company and with outside suppliers and customersValue Stream MappingA tool used to visually map the flow of production. Shows the current and future state of processes in a way that highlights opportunities for improvement
13 Sample Tools Using Lean Thinking Bottleneck AnalysisIdentify which part of the process limits the overall throughput and improve the performance of that part of the processKPIs: Key Performance IndicatorsMetrics designed to track and encourage progress towards critical goals of the organizationRoot Cause Analysis (5 Whys)A problem solving methodology that focuses on resolving the underlying problem instead of applying quick fixes that only treat immediate symptoms of the problem.
14 Lean Thinking Customer is 1st Empower people to “think” Create a workplace that are more human, and encourage people to thinkThis is the ultimate forum for “team building”Thoughts to consider:Every time work stops we use resources that add costs and generate no valueOverproduction is the worst form of wasteThe real benchmark is zero waste, not just better than your competition
15 Benefits to Involving the Team Improves moraleFinds barriers that thwart creativityClearly defines objectives and goals for allImproves processes and proceduresImproves productivityIdentifies teams strengths and weaknessesImproves ability to problem solve
17 Reactive Quality: Taking defects out of what is produced What is Six SigmaReactive Quality: Taking defects out of what is producedProactive Quality: Create a process that will create less or no defects
18 History of Six Sigma Coined by Bill Smith of Motorola Motorola started using problem solving through statistical analysis in the 1970sMotorola officially started a six sigma program in 1987GE launched a six sigma program in 19961998/1999 Green Belt certifications became the criteria for management promotions
20 Defects Per Million Opportunities What is Six SigmaSigma LevelDefects Per Million Opportunities1690,0002308,537366,80746,210523363.4
21 What is Good Enough? 99% Good (3.8 Sigma) 99.99966% Good (6 Sigma) 20,000 lost articles of mail per hour (based on 2,000,000/hr)7 articles lost per hourUnsafe drinking water for almost 15 minutes each day1 unsafe minute every 7 months5,000 incorrect surgical operations per week1.7 incorrect operations per week2 short or long landings daily at an airport with 200 flights/day1 short or long landing every 5 years2,000,000 wrong drug prescriptions each year680 wrong prescriptions per yearNo electricity for almost 7 hours each month1 hour without electricity every 34 years
22 What Makes a Good Six Sigma Project? There is no known solutionThe root cause is not knownThe problem is complex and needs statistical analysisThe problem is part of a processThe process is repeatableA defect can be definedThere is data available
23 DMAIC Define who the customers are and what are their expectations Define project boundaries Define the process to be improved by mapping the process flowMeasureDevelop a data collection plan for the processCollect data from many sources to determine types of defects and metricsCompare to customer survey results to determine shortfallAnalyzeIdentify gaps between current performance and goal performancePrioritize opportunities to improveIdentify sources of variationImproveCreate innovate solutions using technology and disciplineDevelop and deploy implementation planControlPrevent reverting back to the “old way”Require the development, documentation and implementation of an monitoring planInstitutionalize the improvements
24 Six Sigma Phases: Define Define Customers and Requirements (CTQs)Develop Problem Statement, Goals and BenefitsIdentify Champion, Process Owner and TeamDefine ResourcesEvaluate Key Organizational SupportDevelop Project Plan and MilestonesDevelop High Level Process MapDefine
25 Define Define Measure Analyze Improve Control Deliverables Fully trained team is formed, supported, and committed to work on improvement project.Team charter developed, customers identified and high impact characteristics (CTQs) defined, business process mapped.
26 Six Sigma Phases: Measure Define Defect, Opportunity, Unit and MetricsDetailed Process Map of Appropriate AreasDevelop Data Collection PlanValidate the Measurement SystemCollect the DataBegin Developing Y=f(x) RelationshipDetermine Process Capability and Sigma BaselineMeasure
27 Measure Define Measure Analyze Improve Control Deliverables Key measures identified, data collection planned and executed, process variation displayed and communicated, performance baselined, sigma level calculated
28 Six Sigma Phases: Analyze Define Performance ObjectivesIdentify Value/Non-Value Added Process StepsIdentify Sources of VariationDetermine Root Cause(s)Determine Vital Few x's, Y=f(x) RelationshipAnalyze
29 Analyze Define Measure Analyze Improve Control Deliverables Data and process analysis, root cause analysis, quantifying the gap/opportunity
30 Six Sigma Phases: Improve Perform Design of ExperimentsDevelop Potential SolutionsDefine Operating Tolerances of Potential SystemAssess Failure Modes of Potential SolutionsValidate Potential Improvement by Pilot StudiesCorrect/Re-Evaluate Potential SolutionImprove
31 Improve Define Measure Analyze Improve Control Deliverables Generate (and test) possible solutions, select the best solutions, design implementation plan
32 Six Sigma Phases: Control Define and Validate Monitoring and Control SystemDevelop Standards and ProceduresImplement Statistical Process ControlDetermine Process CapabilityDevelop Transfer Plan, Handoff to Process OwnerVerify Benefits, Cost Savings/Avoidance, Profit GrowthClose Project, Finalize DocumentationCommunicate to Business, CelebrateControl
33 Improve Define Measure Analyze Improve Control Deliverables Documented and implemented monitoring plan, standardized process, documented procedures, response plan established and deployed, transfer of ownership (project closure)
34 Sample Tools Using Six Sigma Process MappingCreating flowcharts of the step in a process – operations, decision points, delays, movements, handoffs, rework, loops, and controls or inspectionsHypothesis TestingInvestigating a theory about the suspected cause (s) of a particular effect in a process to determine if it is correct. It’s a compass that points you directly to the vital few factors that are most affecting your process.Failure Mode Effect AnalysisThe manner in which a part or process can fail to meet a specification, creating a defect or non-conformance, and the impact on the customer if that failure mode is not prevented or correctedControl PlanA detailed assessment and guide for maintaining all the positive changes you have made. It ensures that all your analysis and efforts stay in effect and that you have information at your disposal to prevent backsliding or a return to less than optimal performance standard.Process Capability ToolProcess capability tool is the measure of a process being able to meet specification requirements and fulfill customer CTQ needs on a long term basis.
35 Key Roles for Six SigmaIncludes CEO and other key top management team members. They are responsible for setting up a vision for Six Sigma implementation.Executive LeadershipAre responsible for the Six Sigma implementation across the organization in an integrated manner. Champions also act as mentor to Black Belts.Champions
36 Key Roles for Six SigmaIdentified by champions, act as in-house expert coach for the organization on Six Sigma. They devote 100% of their time to Six Sigma.Master Black BeltsOperate under Master Black Belts to apply Six Sigma methodology to specific projects. They primarily focus on Six Sigma project execution.Black Belts
37 Key Roles for Six SigmaAre the employees who take up Six Sigma implementation along with their other job responsibilities. They operate under the guidance of Black Belts and support them in achieving the overall results.Green Belts