Lean Six Sigma overview training for front line workers

1. Introduction to Lean Six Sigma for
Black Belt Candidates
Master Black Belt
Julian Kalac, P.Eng.
1

2. 2
1) Understand and learn how to use Lean Six Sigma
tools and methods at the Black Belt level
1) Be able to apply the process improvement tools and
methods learned to solve problems, improve
performance and achieve desired goals
2) Think more objectively, critically and analytically
using data to make key decisions

4. 4
MEASURE
•Map/measure the process
•Collect lots of data
ANALYZE
•Organize and analyze the data and
information to Identify failure
modes, problems, root causes
CONTROL
•Maintain, monitor and
control variation
•Preventively fix root causes
IMPROVE
•Plan, apply, deploy Improvement Tools
•Correctively fix failure modes
DEFINE
•Identify standards, metrics, objectives, CUSTOMER PROBLEMS
Define
Measure
AnalyzeImprove
Control
Results
Define
Measure
AnalyzeImprove
Control
Results
Applied projects
following the
DMAIC Model

5. Define
Measure
AnalyzeImprove
Control
Results
Define
Measure
AnalyzeImprove
Control
Results
Applied Learning
Theory Practice
Coached Projects
 Training typically
occurs over a 4-6
month period
using a Learn 
Apply; Learn
Apply; … format.
 Projects that solve
real performance
problems in your
organization are
part of the
certification and
learning process
Recognize:
•Find problems
•Link to organization's needs
•Form teams, define resources
•Understand program req’ts
Deploy:
•Validate
improved
performance
that stays in
place

6. 6
2) Clearly Define your Problem and the Impact
Example:
Too many mistakes in purchase request specifications are causing
rework rates of 34%, high costs and late deliveries (less than 50% on
time) to our customers
1) Find
• Customer Issues
• Performance
Reviews
• Meetings
• New Projects
• Failures, Re-work
• Projects
• Continuous
improvement
activities
• Champions
• Stakeholders
• Employees
• SCOR Maps
• Research
• Brainstorm
• Wait until the
crisis hits you
• Value Stream
Maps
3) Clearly State the Initial Scope for your project
(Set targets and timelines!)
Example:
This first phase of this project – by 3Q 2004 - will identify problems
and root causes in the purchase request process, increase first pass
yield rates to 95%, reduce the cost of poor quality by 50% and
increase on-time deliveries to our customers to greater than 90%
4) Link improvement targets to customer needs and
organizational objectives
5) Project Plan – Charter, Resources, Milestones

7. 7
Process Flow
for Measure Phase
Data
Storage
and
Archiving
What data do we need?
Can we use “old” historical data?
Is old data (still) usable?
How was it collected?
Wisdom
Knowledge
Data
Information
Wisdom
Knowledge
Data
Information
Wisdom
Knowledge
Data
Information
Data Selection
Data Integrity Analysis
Data Collection
Measurement System Analysis
Process Mapping

8.  Use Statistical tools to analyze data
 Look for significant factors
 Plot your analysis in charts
 Transform the results into action plans
8
86420
Median
Mean
2.502.252.001.751.501.251.00
Anderson-Darling Normality Test
Variance 2.5808
Skewness 1.75512
Kurtosis 3.79022
N 47
Minimum 0.0000
A-Squared
1st Quartile 0.7500
Median 1.5000
3rd Quartile 2.2500
Maximum 7.7500
95% Confidence Interval for Mean
1.3847
1.98
2.3281
95% Confidence Interval for Median
1.0948 2.0000
95% Confidence Interval for StDev
1.3350 2.0177
P-Value < 0.005
Mean 1.8564
StDev 1.6065
95% Confidence Intervals
Summary for 2005 downtime

9. 9
PROBLEM
FINDING
FACT
FINDING
PROBLEM
DEFINITION
IDEA
FINDING
EVAL. &
SELECT
PLAN
ACCEPT
-ANCE
ACTION
1
2
3
4
6
7
8
5
Select
Tool
Analyze Data & Information Apply tools & Make Changes
Six
Sigma
Projects
5S PM/TPM TQM
Rapid Improve-
ment Event
Integrated
Process
Team (IPT)
Establish Baselines/Metrics
Other CI
Tools
Kanban DFSS
ApplytheTool
(1)
(2)
(3)Implement / Deploy Fixes
(0) Identify failure points, bottlenecks and improvement
opportunities from Define-Measure-Analyze Phases
PM = Preventive Maintenance
TPM = Total Productive Maintenance
CI = Continuous Improvement
DFSS = Design for Six Sigma
TQM = Total Quality Management

10. Maintaining and Improving Control:
 Managing Change
 Quality Management Systems
 What’s Left? What’s Next?
10
Control Tools:
• POKA YOKE
• Statistical Process Control
(SPC)
• “Spec” Control
Document
Procedures and
Best Practices
Create Visual
Controls and
“Dashboards”
Update
Deployment
Plan
Complete
Control
Plan FMEA
Update and Deploy
Communication
Plan
Execute
Deployment Plan
Document Other
Opportunities
Prepare and
Implement
Control Plan
Report out,
Hand-off and
Closure
Prepare and
Implement Training
Plan
Process Flow Diagram for Control Phase:

11. 11
Deploy:
•Validate improved
performance that stays in
place
•Spread improvements
across the enterprise
•Harvest the performance
improvements
•Change the culture
•Where else can you tale the improvements
•Look further upstream
•Look further downstream
•What about other customers
•What about “re-fixing” processes you
already fixed

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13.  “Lean” is a Japanese methodology that focuses
on producing high quality products
faster, better and at lowest cost.
 Lean is about eliminating waste (scrap, rework)
and doing things right the 1st time.
 Lean is NOT ELIMINATING JOBS!
 The goal is that “you don’t work harder, but
rather smarter”

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 Customers demand shorter lead
times, improved quality & reduced prices
 Increase through-put and quality and reduce
time wasted and frustration by working on non-
value add activities.
 Gain new business

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INSANITY “Doing the
same thing over and
over again and expecting
different results”
Albert Einstein

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Change cycle
How people feel
Keep momentum
moving
MOST CRITICAL
TIME IN CHANGES
After results from
changes are seen

17. 17
Single Piece Flow Just-In-Time Eliminate Waste
•Process parts one-at-a-
time or in small lots
instead of in large
batches or economies of
scale
•Quick changeovers
•Balanced and
continuous flows instead
of stop and start
processing
•Have just the right
amount of inventory you
need, when you need
it, where you need it
•Optimize the amount of
inventory required
•Ensure that your
resources are ready to
support the flow
•Never knowingly pass
on a defect
•Improve the capability
of your processes
•Fix failure modes when
they occur
•Determine and resolve
the deeper root causes
= =
The Toyota Production System
Model by Michael Kukhta Reference: Senji Niwa, from the Shingijutsu Organization. Niwa-san also worked directly for Toyota’s Taiichi Ohno (TPS creator) for 18 years.
“Classic Lean”
Strength
“Supply Chain
Management” Strength
“Classic Six
Sigma” Strength

18.  The systematic elimination of waste and re-
alignment of resources to deliver value to the
customer faster, better, & more consistently
 Lean is:
◦ Focus: Eliminate waste, non-value add steps, process
constraints and bottle necks that cause problems in work
throughput
18
Leading to Leading toEliminate
Waste
Reduced
Cycle Times
Increased
Capacity

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1. Lean training to understand why? and how?
2. Value Stream Mapping -Current & Future State
3. Eliminate waste and non-value add work
4. Identify process bottlenecks and improve
them
5. Cross Functional Training

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1. Defects-creating wasted (scrap)
2. Reworking fixing mistakes
3. OVERPRODUCING to make up for lost time
4. WAITING for material, people, instructions
5. WALKING looking for tools, material, people,
6. MOVEMENT handling of material, paperwork
7. INVENTORY Inventories of parts more than
needed (WIP)

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Not utilizing the full capabilities of
employees
Inadequately trained people
Over relying on a select few
High overtime increasing pressure and
stress

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 High-Level Process Map
 Suppliers, Departments, Custo
mers
 Mid-Level Process Map
 Specific Area ex Production
 Detail-Level Process Map
 Specific process/operation
 (most commonly used)
Stop
Start
Stop
Start
Start
Stop
Stop

23. SCOR (Supply Chain Operations Reference) Model:
Structured around Five CORE Process Types
SCOR Model
Customer’s
Customer
Supplier’s
Supplier
Supplier
Internal or
External
Customer
Internal or
External
Your Company
Plan
Make DeliverSource Make /
Repair
DeliverMakeSourceDeliver SourceDeliverSource
Return Return Return
Return Return Return Return Return
Plan Plan
Provides Framework for your Transformation / Improvement Projects.
• Defining the boundaries / scope of the supply chain .
• Evaluate the supply chain’s strengths and weaknesses.
• Industry benchmarks, standardized terms, metrics,
Enables a total enterprise view of a supply chain

24. Customer
Batch
WIP 1
Test
failures
Batch
WIP 2
Production
Defects
detected
Customer
Defects
Late
Orders
QC
I
Rework
Test
Rejects
QC
I2REWORK1
Sub-Assy
Riveting
Shipping
Supplier
Sub-Assy2
WIP2
Final-Assy
Test 2
Hurry Need
To ship!!!
NVA = 38%
Cost = 32%
DLV+Scrap
VA= 62%

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15 coils/shift 8 20 26 39 31 10 20
4
13
19
20 8 40 20 20 20
20 20 20 20
Start Loop coils
180 deg
twist & prep
Skin Electric
Press
Coil form
Model
check
M/C tapePre-tape
Final Tape
Apply
Mylar
Micalast
Load
Micalastic
Impregnation
Final
Press &
Cure
Remove
Mylar
Final
gauge
ECP
Tape
ECP
oven
cure
Strand &
Final testPack &
Ship
Stop
Rotation schedule:
Based on the cycle times above every 2Hrs, Rotate Final Taping operators
with operators from “Skinning”, Electric Pressing. Coil forming & Model-
checking.
This will increase productivity from 28 Coils/Day to 40 Coils/Day and
ensure max exposure to F/T not more then 2hrs/day.
Needed: Cross-functional training and ~ 1 week
learning curve to achieve 85% operator efficiency

26.  Increased Coil Productivity by 30% from 28 to 40
Coils/day = $420K/Year
 Increased direct labour utilization by 26%
=$240K/Year
 Reduced in-process scrap from 20% to under 4%
 OEE improvement of 24% (from 62% to 84%)
 Flexible work Cells & cross functionally trained
workers able to help manage bottleneck efficiently
 MOL order on Final Tape exposure complied with
 Total Operational Savings = $ 800K

27.  Workers can do each others work, help out
when someone is sick, on holidays, quit
 Workers help improve bottleneck
operations by helping out each other
 Variety in work making it more full-filling
 Training new workers
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 Setup Time
◦ Starts when last piece of previous job is complete; ends when
first good piece of next job is complete
 Internal set-up: While machine is shut-down
◦ Strive to minimize this as process is not producing parts
 External set-up: While machine is working
◦ Prepare for set-up, get all tools/parts needed ready and
beside the press before starting set-up

29.  Level 1 (Workstation Achievements)
◦ Data and reports (hard & soft) are sorted into
piles, sections, drawers and multiple file locations:
Cluttered
 Level 2 (Workstation Achievements)
◦ Data & reports are sorted into files, binders and single
locations
◦ Metrics, basic labelling, some visual controls
◦ Appearance is cleaner and more organized
 Level 3 (Workstation Achievements)
◦ All files, data and reports are organize and labelled
◦ Metrics, information and 5S maps are available and
posted
◦ Maintenance of 5S activities, audits of 5S performance
 Level 4 (Work Group Achievements)
◦ Common standards for metrics, filing, labelling, file
naming
◦ Simple, clear and effective Visual Controls & Driver
Measure Boards
◦ Maintenance of Work Group 5S activities, audits of 5S
performance
 Level 5 (Site and Business Unit (BU) Achievements)
◦ Common standards for metrics, filing, labelling, file
naming
◦ Simple, clear and effective Visual Controls
◦ Maintenance of 5S activities, 5S audits
Can usually find
things
Can find things in
a reasonable
amount of time
Can find any file
or doc. In 30
seconds
Close colleagues
can find any file
or doc. In 30
seconds
Any colleague
can find any file
or doc. In 30
seconds

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