The Lean Six Sigma System

The Lean Six Sigma System

1. Main Goal

   • Maximize shareholder value
     • How
       • Achieving the fastest rate of improvement in
         • Customer Satisfaction, Cost, Quality, Process Speed, Invested Capital

2. Lean Six Sigma

   • Lean manufacturing tools increase process speed and reduce process waste. Six Sigma quality tools to reduce process variation and eliminate product defects

3. Six Sigma: The Power of a Quality Culture

   • Goal
     • Create a quality management system to measure process capability and to improve it to near-perfection
   • The Quality Culture
     • Customer centric, finanalcial results, management engagement, resource commitment (1-3% staff), excecution infrestructure
       • Metrics
         • Potential Process Capability Index (Cp)
           • Process variation vs. Quality specifications, it must be larger than 1.33
         • Real Process Capability Index (Cpk)
           • Process distribution vs. Quality specifications, it must be larger than 1.00

4. Process and Improvement Tools

   • Step 1: DEFINE
     • Step 2: MEASURE
       • Step 3: ANALYZE
         • Step 4: IMPROVE
           • Step 5: CONTROL
             • Develop control plan, monitor performance, and mistake-proof process
               • TOOLS
                 • Control plan, statistical process control, Poka-Yoke devices, and process documentation
           • Generate ideas for product and process design, conduct experiments, create straw models (prototypes), develop implementation plans, and validate improvements
             • TOOLS
               • Design of experiments, total productive maintenance, SMED, flow manufacturing, and jidoka / autonomation
         • Determine process capability and speed, and determine dources of variation and cycle time bottlenecks
           • TOOLS
             • Statistical process control, process mapping / arrow diagram, standard operations analysis, and DFMEA /PFMEA
       • Define current state, confirm project objectives, and collect and display data
         • TOOLS
           • Lean Six Sigma diagnostic, process mapping, statistical process control (7H / 7M), and MSA
     • Identify black belt and team resources, prepare team charter, and obtain project approval
       • TOOLS
         • Project management, VA / VE, and financial analysis

5. The Speed of Lean Manufacturing

   • Goal
     • Identify the “time traps” injected by fewer than 20% of the workstations that cause 80% of the delays and eliminate them
       • Metrics
         • Process Cycle Efficiency > 25%
           • Value-Added Time, and Total Lead Time
         • Sources of Waste Reduction
           • Shorter lead time, less inventories, less material handling, fewer customer complaints, and less scrap and rework

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