1. Lean vs. Six Sigma
Lean vs. Six Sigma

2. Understand DMAIC and Lean Methodologies.
Learning Objectives
Lean vs. Six Sigma
Understand DMAIC and Lean Methodologies.
Where are Six Sigma and Lean Methodologies used?
What are the tools used for Six Sigma and Lean?
What are the differences between Six Sigma and Lean?
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3. Six Sigma Basic Premise
Lean vs. Six Sigma Y f
(X) =
Outputs (CTQ)
Inputs
Do you know what is important to customers?
Do you know what “Xs” are important to
meet customer needs?
How do the “Xs” drive outcomes,
revenue, and cost?
The Equation: “Y= f (X)”
Lean Six Sigma is about improving what is important or “critical to the customer and quality (CTQ).” Y is the measurement of the CTQ that needs to be improved to meet customer needs.
Once you understand what the Ys are, (those things critical to customers and quality), measure them and compare them to the targets. Understand the process characteristics that may cause variation and then reduce this variation by controlling the process variables. These process variables are called the Xs.
There may be many Xs that can affect the Y.
This simple equation is used to help communicate what a project is trying to accomplish. If Y is a function of X, then identify the Xs with enough precision to first improve them and then control them. Once Xs are maintained, the Y will be met.
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Your role is to identify the Xs that cause negative variation and improve on them.

4. Six Sigma DMAIC Methodology
Lean vs. Six Sigma
Control
Improve
Analyze
Measure
Define
Test Hypotheses
List Vital Few Xs
Identify Control Subjects
Develop Feedback Loops
Develop Process Control Plan to Hold the Gains
Implement, Replicate
Select the Solution
Design Solution, Controls, and Design for Culture
Prove Effectiveness
Develop Project Charter
Determine Customers & CTQs Map High-Level Process
Establish and Measure Ys
Plan for Data Collection
Validate Measurement System
Measure Baseline Sigma Identify Possible Xs
Six Sigma DMAIC Methodology
The five phases of DMAIC are summarized here.
In the Define Phase, the problem or Y is defined.
In the Measure Phase, the Y is measured (size and span).
In the Analyze Phase, the Xs are analyzed and are proven or disproven as to whether they belong in Y = f (X).
In the Improve Phase, the levels of Xs are determined to achieve the desired level of Y performance.
In the Control Phase, the Xs are controlled to those determined levels so that the desired Y performance is ensured.
Focus on controlling the Xs, instead of inspecting Y.
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5. Y Xs Goal: Y = f ( x ) Six Sigma Methodology Define Practical Problem
Lean vs. Six Sigma Y Xs
Measure
Analyze
Improve
Control
Characterization
Process
Optimization
Goal: Y = f ( x )
Define
Practical Problem
Statistical Problem
Statistical Solution
Practical Solution
Attacking Problems
This slide summarizes how Six Sigma attacks problems.
Translate a practical problem into a statistical problem so it can be analyzed statistically and come up with a statistical conclusion.
Then translate the statistical conclusion back into the practical world so that you can implement those practical solutions.
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6. Insufficient Process Capability
Sources of Variation
Lean vs. Six Sigma y x
Poor Design
Changing Needs
Measurement System
Insufficient Process Capability
Variation
Skills & Behaviors
All products and services are designed with good intentions but without knowing what variables will cause the product or service to not meet customer needs over time. Over time excess variation from these root causes must be reduced.
List examples of process variation in your system.
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7. Lean Methodology Lean vs. Six Sigma Define Value Measure Value Analyze
Analyze the Value Stream Attribute Map
Analyze the Process Load and Capacity
Perform VA/NA Decomposition Analysis
Apply Lean Problem Solving to Solve for Special Causes
Stabilize and Refine Value Stream
Complete Process and Visual Controls
Identify Mistake-proofing Opportunities
Implement S4-S6
Control Plan, Monitor Results, and Closeout Project
Conduct the Rapid Improvement Event
Design the Process Changes and Flow
Feed, Balance, Load the Process
Standardize Work Tasks
Implement New Processes
Define Stakeholder Value and CTQs
Define Customer Demand
Map High-level Process
Assess for 6S Implementation
Measure Customer Demand
Plan for Data Collection
Validate Measurement System
Create a Value Stream Attribute Map
Determine Pace, Takt-time and Manpower
Identify Replenishment and Capacity Constraints
Implement S1-S3
Control Process
Improve
Process - Pull
Analyze
Process - Flow
Measure Value
Define
Value
Lean Methodology
This slide summarizes the Lean methodology. Lean focuses on value and flow.
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8. Why Define a Process as a Value Stream?
Lean vs. Six Sigma
A Value Stream
Focuses attention on what is important for the customer.
Identifies all the necessary components to bring a product or service from conception to commercialization.
Identifies waste inherent in processes and works to remove it.
Reduces defects in products and deficiencies in processes.
Focuses on improving specs and cost.
Value Streams
As part of the focus, processes are viewed as value streams. What value Is provided through each step of the process and what can be done to improve value-add. Waste and non-value add is removed or reduced.
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9. What Is Typically Found
Lean vs. Six Sigma
Lean Value Stream Management starts with defining value in terms of products and process capabilities to provide the customer with what they need at the right time and at an appropriate price.
Value added
Non-value added/waste
Value-Added Activity
An activity that transforms or shapes material or information to meet customer requirements.
Those activities that require time or resources, but do not add value to the customer’s requirement (but may meet company requirements).
Non-Value Added Activity (COPQ)
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10. The Eight Wastes Lean vs. Six Sigma
Overproduction—making or doing more than is required or earlier than needed.
Waiting—for information, materials, people, maintenance, etc.
Transport—moving people or goods around or between sites.
Poor process design—too many/too few steps, non- standardization, inspection rather than prevention, etc.
Inventory—raw materials, work-in-progress, finished goods, papers, electronic files, etc.
Motion—inefficient layouts or poor ergonomics at work-stations or in offices.
Defects—errors, scrap, rework, non-conformance.
Underutilized personnel resources and creativity—ideas that are not listened to, skills that are not utilized.
adapted from Taiichi Ohno
How to Identify the Eight Wastes
Overproduction—making or doing more than is required or earlier than needed
What is the minimum quantity the customer needs?
What is the minimum order quantity or lot size?
Waiting—for information, materials, people, maintenance, etc.
Any wait-time is waste.
Look to eliminate or minimize by ensuring that items arrive only when they are truly needed.
Transport—moving people or goods around or between sites
Although some is necessary, this is also pure waste.
Calculate the amount of travel distance and number of times items, materials, and WIP are moved per day (Spaghetti Diagram).
Look to minimize distance or number of daily moves.
Poor process design—too many/too few steps, non-standardization, inspection rather than prevention, etc.
This is attacked through VA/NVA analysis.
U-shaped cells and moving areas in close proximity.
Standardize on a size (i.e. using same screw size for all assemblies).
Design to eliminate inspection.
Inventory—work-in-progress, papers, electronic files, etc.
Calculate days of supply for all goods.
Understand how long it takes to replenish each item (more frequent supplies means less inventory).
Develop strategy for the amount of supply to keep.
Monitor and measure.
Motion—inefficient layouts at workstations; poor ergonomics in offices
Motion requires detailed analysis of movements.
Defects—errors, scrap, rework, non-conformance
Any defect is waste.
Use Pareto Analysis to identify key defect reasons.
Need to understand causes of the errors—use cause-effect diagram.
Look to eliminate all causes through mistake proofing.
Underutilized personnel resources and creativity—ideas that are not listened to, skills that are not utilized
Remember, that everyone can contribute.
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11. US war production TPS Lean JIT Lean 6s
History of Lean
Lean vs. Six Sigma
Toyota
Ohno and Shingo
Flow of work
Small batch sizes
New philosophy
Womack “Mach. Changed World”
Eliminate Waste
Improve performance
Flexibility
Just-in-Time
Schonberger “Japanese Mfg Techniques”
Takes TPS and imports to US
Added to 6s tool kit
Large quantities
Rapid pace
High training
US war production
TPS
Lean
JIT
Lean 6s
History of Lean
The historical development that led to Lean and to Lean Six Sigma is summarized here.
During the WWII war production years, the focus was on large quantities.
The Toyota Production System (TPS) focused on streamlining flexible production flow through reduced batch sizes, improved quality, and producing to the pull of customer demand.
JIT or Just-In-Time production expanded the application, philosophy, tools, and techniques of TPS to the U.S. and other parts of the world. JIT is synonymous with TPS.
Lean took it one step further. Womack in his seminal book expanded TPS/JIT to include all industries—services and other non-manufacturing industries.
Lean focuses on flow, flexibility and speed, and the minimizing of waste. The waste or obstacles are obvious after some simple analysis.
Six Sigma focuses on reducing variation and ensures that the Xs in Y = f (X) are determined and controlled to solve chronic problems. The Xs are usually not obvious. High consistent quality is the result.
Lean Six Sigma deployment marries the two to enable companies to address a larger variety of problems. Depending on the type of problem, Lean or Six Sigma or a combination of both will be used.
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12. Lean & Six Sigma Methods Results The Methods Lean vs. Six Sigma
Improve Speed
Higher Quality
Lower Costs
Sustain Performance
Culture Change
Achieve Breakthrough
Dashboard Results
The Methods
Lean and Six Sigma enable and provide the right tools, the right projects, and the right processes to drive sustainable breakthrough improvements resulting in improved quality, lower costs, improved dashboard metrics, and culture change.
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13. How to Think About Improvement
Lean vs. Six Sigma
The Juran Trilogy ®
Plan
Control
Improve
DFSS
RCCA
Lean Six Sigma
Time
Lessons Learned
Breakthrough
Sporadic Spike
Six Sigma & Beyond
Chronic Waste
COPQ
Key Word Is “Breakthrough”
Breakthroughs achieve substantially higher levels of performance quickly. Breakthroughs do not just happen. They require a systematic change process, one that can be achieved with the “project-by-project” approach.
Costs of Poor Quality (COPQ) are those costs that would disappear if every task were done perfectly the first time, every time. It can also be defined as the difference between the theoretical minimum cost and the actual cost.
Improving products, processes, and services is a never-ending pursuit. Achieving breakthroughs may require a tenfold improvement, or even better than 3.4 ppm, which is a Six Sigma level.
Lean and Six Sigma are methodologies and toolsets that can enable an organization to improve performance systematically.
For an organization to continue making breakthroughs and meet the needs of their stakeholders, they must master the skills to plan, control, and improve quality.
Accelerated Change Management Support
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14. Matching Improvement Process to Need
Lean vs. Six Sigma
Change
Management
Plan, Do,
Study, Act
(PDSA)
Lean &
Six Sigma
DMAIC
Design for
Lean
Unclear
Solution
Clear Solution
Radical
Moderate
Small Gains or Clear Solution
Launch New Product, Service, or Process
Large
Gains
Medium
Definitions
Change Management is about anticipating and planning for human reaction to improvements, in addition to the technical and business components of the change. It begins with understanding the values and habits of the population that must change. It develops the means to promote that change among the target population members, including communication, changes in reward and recognition, and adaptation of details of the change in ways that are consistent with the population values.
Root Cause Corrective Action (RCCA): Provides a means to attack sporadic spikes or special causes that occur daily.
Lean and Six Sigma (DMAIC): Lean is a set of methods used to eliminate non-value added tasks and increase speed. The Six Sigma method of Define-Measure-Analyze-Improve-Control (DMAIC) is a business improvement approach that drives dramatic breakthroughs in performance. Lean Six Sigma is not watered down Six Sigma, it means Six Sigma combined with the Lean methods to remove waste and speed up processes. The combination is more powerful than either alone.
Design for Six Sigma (DMADV): This method of Define-Measure-Analyze-Design-Verify (DMADV) is used to design or redesign processes, services, and products at high sigma levels so that they are almost flawless from the beginning.
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15. Lean and Six Sigma
Lean vs. Six Sigma
LEAN = Improvement principles focused on dramatically improving process speed and eliminating the eight deadly wastes.
Improve
Process- Pull
Control
Process
Analyze
Process-Flow
Measure
Value
Define
SIX SIGMA = Breakthrough Process, Design, or Improvement Teams focused on eliminating chronic problems and reducing variation in processes.
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16. Lean Project Attributes
Lean vs. Six Sigma
Simply stated: “Lean is about moving the Mean.” It focuses on efficiency.
Lean reduces average cycle time.
Lean reduces excess inventory.
Lean improves average response time.
Improvement
Lean Project Attributes
Note the shift in the mean. For example, the mean cycle time is reduced.
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17. Increase Process Yield
Six Sigma Attributes
Lean vs. Six Sigma
Simply stated: “Six Sigma is about Reducing Variation.” It focuses on Effectiveness. The mean will most likely also be improved.
Decrease defect rate
Increase Process Yield
Improvement
Six Sigma Attributes
Note the shift in the mean and the reduced variation.
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18. Lean and Six Sigma
Lean vs. Six Sigma
Six Sigma = Breakthrough Process Improvement Teams focused on eliminating chronic problems and reducing variation in processes.
Lean = Rapid Improvement Teams focused on dramatically improving process speed, and the elimination of the eight deadly wastes.
IMPROVED
EFFICIENCY
Improve
Process- Pull
Control
Process
Analyze
Process-Flow
Measure
Value
Define
EFFECTIVENESS
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19. Lean Six Sigma
Lean vs. Six Sigma
Lean Six Sigma is an approach to integrating the power of Six Sigma Tools and Lean Enterprise Tools which can be applied within an organization to create the fastest rate of improvement, maximize shareholder value, and increase customer delight.
Improve
Process- Pull
Control
Process
Analyze
Process-Flow
Measure
Value
Define
Lean Six Sigma
As needed, a project can be a Lean project, a Six Sigma project, or a Lean Six Sigma project which uses the tools of both Lean and Six Sigma, as appropriate.
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20. Which Technique to Begin With?
Lean vs. Six Sigma
It is often advantageous to begin with Lean projects.
These are easier to understand and implement.
Begin with streamlining processes and Rapid Improvement Events.
This gets the operation in good order.
Chronic problems are now easier to deal with.
“Low Hanging Fruit” is eaten.
Next, select Six Sigma projects
Other Reasons to Begin Lean?
Lean attacks obvious waste.
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21. Improve assembly line throughput Reduction in Finished Goods Inventory
Lean Projects
Lean vs. Six Sigma
Use Lean when you are trying to streamline any process and reduce process waste.
Improve assembly line throughput
Reduction in Finished Goods Inventory
Reduce the time to process new proposals
Reduce machine setup time
Improve order processing time
Lean Projects
Examples of Lean projects are listed here. Note the emphasis on flow, speed, and time.
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22. Improve yield on a continuously running machine
Six Sigma Projects
Lean vs. Six Sigma
Use Six Sigma where process metrics are more difficult to collect or understand, and project success requires analysis of multiple input factors (Xs). These are often chronic problems.
Improve yield on a continuously running machine
Reduce defects on a machine with multiple inputs and machine settings
Reduce the amount of wait time for a call center
Improve the number of quality new hires
Six Sigma Projects
Note the emphasis on determining the root causes (that we do not know or are not obvious) and determining the best levels of Xs in Y=f (X).
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23. It is all about the correct tools.
Mixed Projects
Lean vs. Six Sigma
What happens when you start a Six Sigma Project and it turns into a Lean project?
It is all about the correct tools.
Use the Lean tools for project success.
What happens if a Lean project turns into Six Sigma?
Depending when this is discovered, it may mean going back to utilize some Six Sigma tools before proceeding.
Mixed Projects
As indicated earlier, both sets of tools may be needed.
For example, a Six Sigma project may determine in the Analyze Phase that there is no standard process or there is no process in place. In the Improve Phase, the team will want to conduct a Lean event to develop the best standard work process.
Alternatively, a Value Stream project may find that certain portions of the Value Stream have too much variation. Six Sigma tools will be used to determine the Xs that drive the variation in Y = f(X) and thus, improve process capability. If it is a big effort, then a Six Sigma sub-project is launched as part of that Value Stream Management project.
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