1. An Overview of “Why” Six Sigma Lean Oct 2015 Rev 9.2 RAH Consultant Group 8478 Winged Foot Drive Frisco, Texas, 75034 Tel: 214 766 0059 Email: rah1492@gmail.comrah1492@gmail.com Web Site: www.rahconsultantgroup.com Profitability and Customer Satisfaction. Experts in organizational process improvements through education and assistance in problem solving and solutions to improve Profitability and Customer Satisfaction. Rex Horne, Certified Master Black Belt Six Sigma Lean; Professional Member of the International Society of Six Sigma Professionals

2. Insanity: doing the same thing over and over again and expecting different results. Albert Einstein summed up your issues in two statements: The Thought that got you into trouble can not be the thought that gets you out of trouble

3. Reactive Focus on Results Measurements are well established for outputs Reacts to results Waste Resources through firefighting Pro-Active Focus on inputs, monitors results Measurements are established to control and adjust inputs to manage the corresponding effects on output Modifies inputs to attain desired outputs Reduce and eliminate the causes of defects in the processes TWO DIFFERENT THOUGHTS

4. Six Sigma Lean is not a department or program Six Sigma Lean is owned by all the employees of the company The employees are responsible for the successes or failures in the improvement process Six Sigma Lean is a proven methodology to attain and maintain improvement The only magic formula for improvement is people and a desire to change Six Sigma Lean is both a tool and a philosophy. FIRST THINGS TO REMEMBER

5. Always ask what is it that my customer is expecting? “VOC” Focus on the process Change the output by changing the inputs Y = f(x) Use a systematic approach to process change “DMAIC” Measurements are critical to controlling the inputs Get the process under control by getting it centered – Remove special causes from the process Remove Waste from the System Work=Results: Not the amount of energy used OVERVIEW TO CONTINUOUS IMPROVEMENT

6. SIX SIGMA PHILOSOPHIES DIFFERS FROM MANY OTHER EDUCATIONAL ACTIVES IN THAT: It recognizes that you are the expert at what you do. Six Sigma Lean is design to give you a set of tools and a methodology to solve problems. It’s purpose is not to tell you how to do your job. Management must be engaged in the process for it to be successful to: prioritize activities, provide resources, encourage, set expectations, and foster an environment where Six Sigma Lean becomes the behavior of the culture. The Process Experts are the closest group to the Input Factors that drive the Results. By using their understanding of the Process, they use the scientific method to determine Root Cause, and develop improvements activities. Six Sigma Lean is a natural problem solving tactic that uses data and not guessing to reach solutions.

7. Focus: On the Elimination of Variability in Results and the Centering of the process on the Customer Target Value Six Sigma Quality, Cost, + Process Structure Focus: on the Elimination of Waste and Non-Value- Added Efforts. Improvement of Speed Lean Speed + Waste + Overall Infrastructure Both must be present and working in conjunction to maximize results Product can be perfect and there still be a lot of waste in how it was produced LEAN AND SIX SIGMA: THEIR FOCUS

8. Six Sigma is NOT about putting in more checks and inspections You would still have mistakes & defects More inspections just allows you to catch them earlier and requires more resources (and more $$$) Six Sigma IS about finding the ROOT CAUSES of mistakes and eliminating them through process improvement, and putting Controls in place so that they don’t happen again. THE BOTTOM LINE…

9. The only way to change the Results is to understand, control, and modify the factors that drive the Results THE BOTTOM LINE…

10. .. A 4ð company will spend 10%-30% of revenue on internal and external repair. A 6ð company will spend <1 % of revenue on internal and external repair WHY "SIX" SIGMA? profitability Simply put: Six Sigma Lean is about improving profitability by the reduction of waste in the organization.

11. SIX SIGMA LEAN IS A “PROGRESSIVE APPROACH TO BETTER RESULTS It is critical that each task along the way, whether it supplies information, a service, or product is done right the first time to a clearly defined set of requirements. AA*BA*B*CA*B*C*D Complete A Continuous Improvement Culture will create a mindset that insures “Correctness” every step of the way.

12. CHANGE INPUTS TO CHANGE RESULTS Engine Inputs AIR FUEL SPARK Engine Output Performance You adjust these To Change This

13. Process Environment Measurement Man Woman Materia l Machine Methods Results Control of Input Factors is the only way to improve Results Continuous Improvement Focuses on the Process Factors Input Factors Understanding how the Input Factors Affect the Results will reduce Surprises and Fire Fighting

14. Environment Man Woman Material Methods Process Task Machine Measurement Environment Man Woman Material Methods Machine Measurement Environment Man Woman Material Methods Machine Measurement Results Questionable Product or Service = Little or no understanding of how the Input affect the Results: Lack of data to support being under Control / Predictable Not well understood and is the result of just doing some described action Results What a Uncontrolled Process Looks Like Unpredictable Results, Reworks, Uncertainty as to how good product is delivered to Customer, Returns, Higher than expected Cost Uncontrolled and undocumented Rework without Root Cause Action Final Inspection Reject Non- Conforming product back to line Reliance on Inspection to find problems! Rejects Variation and Special Causes being introduced without Understanding – What, Where, and How ?? ? ?

15. Environment Man Woman Material Methods Process Task Machine Measurement Environment Man Woman Material Methods Machine Measurement Environment Man Woman Material Methods Machine Measurement Results Completed Product or Service = Understanding of how the Input affect the Results: Data to support being under Control / Predictable Documented Repeatable Results that demonstrate Compliance to Customer Requirements Results Characteristic of a Controlled Process Documented Repeatable Results that demonstrate Compliance to Customer Requirements Understanding of how the Input affect the Results: Data to support being under Control / Predictable Expected Results that meet the Customer Requirements the First Time; At Expected Cost

16. Where most organizations are and what they need to become Processes QC - Police ? ? ? ? ?? ? ? Process Predictability Uncertain ResultsPredicable Results QA – Assurance: Verifying Compliance and Capability Does not mean that the process is capable, but results are predictable Documented Process and Tooling Trained People Measured Results with Controls A Proactive Organization is fixing issues before they become PROBLEMS

17. The Goal of Lean Six Sigma is to improve the activities conducted by an organization. Reduce Waste Determine what are the Factors that drive Poor results using the Scientific Method Coming up with Best Solutions to Issues Controlling the Process so it doesn’t drift Improving Profitability

18. What Have We Discussed So Far? Six Sigma Lean is a set of tools to help the Process Expert solve problems It will cause a shift from being Reactive to Proactive, by identifying issue and addressing them before they become a problem. Everyone is responsible for success The focus is on how Key Inputs affect the Results. By understanding and Controlling the Key Input Factors and monitoring the Results, we will attain the desired Results. It is critical that every step of the way has clearly defined requirements for success and each Process Expert is trained to Know “What to do,” “How to Do,” and “How to know their actions were correct”. Nothing moves from a task unless it meets the requirements.

19. Management Leadership Team Six Sigma Improvement Teams Six Sigma Steering Team Members Associates Team Leader Champion Technical Champion MBB/BB Sponsor SIX SIGMA LEAN STRUCTURE “Company’s Critical Objectives”. Major activities are driven by priorities set to meet the “Company’s Critical Objectives”. PROBLEM The “Best” functioning improvement environment is one where the “Process Owners” using their Six Sigma Lean Tools, under the direction of their manager are solving issues before they become a “PROBLEM”.

20. Sponsors: Approves and is owner of improvement teams; with functional personnel owns improvements once implemented Plant Manager /Senior Functional Manager / President Steering team: Sets priorities and leads improvement culture Senior Management Team Master Black Belt: Trains and Mentors improvement teams; A go to expert in improvement methodology: Black Belt Train Green Belts/ Mentor Teams Champion Team Leader Green Belt Team Member/ Team Leaders White / Yellow Belts Team Member SIX SIGMA LEAN ORGANIZATION

21. How does my organization get started? Attain the assistance of a Six Sigma Lean Professional with experience in training, operational improvement, and structure. Select a group of “Process Owners” to train as Green Belts. These become the Core of your Improvement Activities. Select a “Low Hanging Fruit” Opportunity as the first Six Sigma Lean Activity. Allow the trained Process Owners to use their training and tools to gain experience in Problem Solving and implementation of Solutions. Have the group report on their solution. Nothing Communicates success better than those who attained the results. Communicate, Communicate, Communicate, the importance of Organizational Improvement. Select an internal candidate or candidates to become Six Sigma Lean Black Belts. Create an environment in which the organization “Owns” its improvements Celebrate Successful ResultsCelebrate Successful Results

22. If you wish more Information regarding Six Sigma Lean Please Contact RAH Consultant Group 8478 Winged Foot Drive Frisco, Texas, 75034 Tel: 214 766 0059 Email: rah1492@gmail.com More than 20 years in Process Improvement Education and Implementation. Rex Horne, Certified Master Black Belt Six Sigma Lean; Professional Member of the International Society of Six Sigma Professionals