1. LESSON 4 Process Improvement – Lean
29 August 2014

2. Lesson Objectives
Upon completion of this lesson, you should be able to:
Contrast the roles and techniques of the Lean and Six Sigma methodologies
Evaluate a given scenario for opportunities for improving Quality, Productivity, and Cost

3. Lesson Topics This lesson will cover the following topics:
Lean Manufacturing and Six Sigma
Lean Manufacturing
Six Sigma

4. What’s In It For Me?
Your understanding of Lean Manufacturing and Six Sigma will enable you to support your suppliers’ efforts toward continuous improvement

5. Lesson Introduction
How does Lean Manufacturing and Six Sigma improve quality, increase productivity, and reduce cost?

6. Lean Manufacturing and Six Sigma
Lesson Topics:
Lean Manufacturing and Six Sigma
Lean Manufacturing
Six Sigma

7. Lean Manufacturing and Six Sigma
Standards for:
Quality
Cost reduction
Production
Improves customer satisfaction and builds customer loyalty through improved quality

8. Lean and Six Sigma Similarities
Scientific, disciplined approach
Both Lean and Six Sigma adhere to the principles of scientific investigation
Consistent practices and large process capability driven
Data-driven methodologies
Change a process when data necessitate it
Perform processes the same way every time

9. Lean Manufacturing and Six Sigma
Lesson Topics:
Lean Manufacturing and Six Sigma
Lean Manufacturing
Six Sigma

10. Lean Manufacturing
Value Stream Maps
Lean Toolkit
Lead-time Reduction
Use visual cues, identify and eliminate waste, reduce lead times, simplify, standardize.

11. Lean Tools Lean tools include: Value stream maps
Improved process layouts
5S (Sort, Straighten, Shine, Standardize, Sustain)
Visual processes
Mistake-proofing (Poka Yoke) techniques
Work cells

12. Lean Tools (cont.)
Lean tools improve a process and eliminate waste by:
Simplifying a process
Standardizing the process
Making the process visually apparent
Synchronizing process steps
Mistake-proofing process steps
Reducing changeover time
Using technology and automation effectively

13. Value Stream Map A value stream map:
Identifies the value-added and non-value added steps
Enables you to identify waste in the process
Visually identifies steps in a process
Identifies lead time required for each step
Identifies process time for each process step

14. Waste
Waste is anything that increases process lead time or adds cost without benefitting the customer
Waste will not:
Compel the customer to pay more
Raise customer satisfaction

15. Seven Deadly Types of Waste
Waiting
Overproduction
Inventory
Defects
Transportation
Overprocessing
Motion

16. Example: Value Stream Map
Pilot Pulls Plane to Gate
Gate Attendant Moves Jetway
Flight Attendant Opens Door
Lead
Time
360 sec LT
1000 sec
Lead
Time
60 sec LT
10 sec
Lead
Time
15 sec
VA1
VA2
VA3
NVA1
NVA2
1010 sec
435 sec
Lead time = 360 sec sec + 60 sec + 10 sec +15 sec = 1,445 sec

17. Process Layouts
Sample Process Layout

18. 5S 5S is a visual tool used to: See also: 5S Visual
Simplify
Reduce wasted time
Improve safety
Clean and remove clutter
See also: 5S Visual 5S
Sort
Straighten
Shine
Standardize
Sustain

19. Benefits of Lean Methodology
Inventory, productivity, and responsiveness improvements
Quality improvement
Reduction in waste
Improved customer satisfaction

20. Example: Custom Cables, Inc. (1 of 3)
Class Activity
Refer to Module 5, Lesson 4, Scenario 1 CMM100_M5_L4_S1_Scenario_FINAL.docx
Read directions on the Custom Cables, Inc.
Complete the activity as a class

21. Example: Custom Cables, Inc. (2 of 3)
What examples of Lean Manufacturing were implemented?

22. Example: Custom Cables, Inc. (3 of 3)
What were some of the results from implementing Lean Manufacturing?

23. Lean Manufacturing and Six Sigma
Lesson Topics:
Lean Manufacturing and Six Sigma
Lean Manufacturing
Six Sigma

24. Six Sigma Six Sigma (6σ):
Reduces quality defects through graphical data analysis and statistical tools
Identifies critical causes of quality problems
Eliminates causes of quality defects
Standardizes and trains processes

25. Process Capability Index (CPK)
Six Sigma (cont.)
Six Sigma is a statistical level of quality close to zero defects
Specification Limits
Amount Defective
Outside Sigma Limit
Process Capability Index (CPK)
Category %
PPM*
𝐱 ± 1σ 69
691,462 PPM
0.33
Noncompetitive
𝐱 ± 2σ 31
310,000 PPM
0.67
𝐱 ± 3σ
6.7
67,000 PPM
1.00
Industry Average
𝐱 ± 4σ
0.62
6,200 PPM
1.33
𝐱 ± 5σ
0.023
230 PPM
1.67
𝐱 ± 6σ
3.4 PPM
2.00
World Class
* A 1% defective = 10,000 parts per million (ppm) defective

26. Six Sigma Language Six Sigma: Y = f(X)
Ys are outputs (quality dimensions)
Defects
First-Pass Yield
Warranty claims
Other specific measures
Xs are inputs:
Raw materials
Capacity and capability

27. Six Sigma (cont.) Use Six Sigma for: Quality improvement:
Improve process inputs
Identify relationships between inputs and outputs
Reduce defects, errors, and variation
Identify critical inputs and ensure they are fixed first

28. Summary of Six Sigma Methodology
Reduce quality defects
Eliminate causes of defects
Improve inputs to improve the outputs
Apply graphical data analysis and statistical tools to processes

29. Six Sigma Tools Reduce variation: X-Bar Chart Sigma X-Bar Chart
X-Bar Control Limits
P-Chart
Statistical Process Control (SPC) and Acceptance Sampling

30. Exercise: Explaining Lean and Six Sigma
Small Group Exercise
Find a partner or work in a trio
Refer to Module 5 Lesson 4, Exercise 1 CMM100_M5_L4_E1_Exercise_FINAL.docx
Read the directions in the exercise
Complete the activity; be prepared to share your responses
Time allowed: 15 minutes

31. Summary Having completed this lesson, you should now be able to:
Contrast the roles and techniques of the Lean and Six Sigma methodologies
Evaluate a given scenario for opportunities for improving Quality, Productivity, and Cost

32. Summary (cont.)
Your understanding of Lean Manufacturing and Six Sigma will support your suppliers’ efforts toward continuous performance improvement.

33. Module 5 Wrap Up Activity
Refer to the Module 5 Wrap up Activity
As a team, answer the questions in the Module 5 Wrap Up Activity File
Each team must answer all the questions.
Each Team must be prepared to present their answers.
You have the remaining time as directed by the instructor to complete this activity.