Operational Excellence – Getting Started

Operational Excellence
Getting Started
Lean
4/7/2017 Ronald Morgan Shewchuk 1
• In 1950 The Toyota Motor Company was struggling to avoid bankruptcy
in post World War II Japan under the direction of Eiji Toyoda.
• The company had limited infrastructure and was able to produce only 2,685
vehicles per year.
• This quantity was dwarfed by the Ford Motor Company which produced 7,000
vehicles per day at its Rouge plant in Michigan.
• Eiji Toyoda turned to Engineers Taiichi Ohno and Shigeo Shingo to develop a “Lean”
production system which could manufacture an automobile with less resources
such as machines, people, space, time, energy, etc.
• This was the birth of the Toyota Production System (TPS), which later became
known as Lean Manufacturing or simply, Lean.
• The hallmark of the Toyota Production System is the reduction of waste. Taiichi
Ohno identified seven sources of waste summarized in Figure 1.1.

Getting Started
Figure 1.1 Sources of Waste Targeted by Lean Production
• The systematic identification and elimination of these wastes along the value-
added chain of manufacturing has led Toyota to be the largest, most profitable
automobile manufacturing company in the world.
• History has shown that this improvement has not been a manufacturing
metamorphosis but rather a sustained system of incremental process improvement
which has occurred over the last half-century.
1. Mistakes/ Defects - Errors requiring correction
2. Over Production - Items not immediately needed
3. Over Processing - Steps not actually needed
4. Transportation - Movement of materials not adding value
5. Motion - Unnecessary movement of equipment and/or people
6. Inventory - Work In Process and finished goods excess
7. Waiting - Production delays
Seven Sources of Waste

Getting Started
Six Sigma
• Six Sigma is a systematic method of process improvement which reduces variation
thereby causing quality improvement.
• The methodology of Six Sigma was first formulated by Bill Smith, a Senior Engineer
and Scientist at Motorola in 1986.
• This approach was based upon previous quality improvement systems developed
by Shewhart, Deming, Juran, Ishikawa and Taguchi.
• The goal of Six Sigma is for all processes to produce at quality levels below 3.4
defects per million opportunities (DPMO).
• The hallmark of Six Sigma is the Define, Measure, Analyze, Improve and Control
(DMAIC) process inspired by Deming’s Plan-Do-Check-Act cycle. See Figure 1.2.

Getting Started
Figure 1.2 The DMAIC Process
• At first glance it may appear that the DMAIC process simply states the obvious.
• In practice, however, there is a natural tendency to jump from the problem
definition phase to the improvement phase without identify the underlying cause
and effect relationships.
• This can lead to “poke and hope” or “chasing butterflies in the night” improvement
strategies which will ultimately extend the timeline of the improvement process.
Define Define problem statement, problem scope, project objectives, metrics,
financial benefit, team membership.
Measure Measure current state of process, validate measurement system, establish
reporting and communication system for metrics.
Analyze Analyze data to identify cause & effect relationships, determine process
capability and speed, identify sources of variation and time traps.
Improve Prioritize solution alternatives, conduct experiments to validate solution
alternatives, identify optimum solution through Analyze/Improve iteration.
Control Develop control plan to sustain the gains, new work standard documented
and personnel trained, opportunities for human error reduced.
The DMAIC Process

Getting Started
Integrating Lean and Six Sigma
• We have learned that Lean focuses on waste minimization resulting in reductions
in cycle time, inventory and lead time.
• Six Sigma focuses on process control and variation minimization resulting in defect
reduction.
• If we implement these two improvement methodologies simultaneously we get
the best of both worlds – increased process speed with reduced defects.
• This integration may be visualized as in Figure 1.3 and forms the foundation of
Operational Excellence.
• Now we have a whole host of tools at our disposal to attack problems, a sampling
of which is provided in Figure 1.4. You may recognize some of these tools from
previous experience.
• Most of us have had some exposure to histograms, Pareto charts, fish-bone
diagrams, process maps, Gantt charts, etc.
• The key point is that Lean Six Sigma brings these tools together to systematically
cause improvement by following the DMAIC process.

Getting Started
Figure 1.3 Integration of Lean and Six Sigma
Define Measure Analyze Improve Control
LEAN
6σ
• Project
Charter
• SIPOC
Diagram
• Voice of the
Customer
• QFD
• Project
Prioritization
Matrix
• Financial
Analysis
• KPOV’s
• RACI Chart
• Swim Lane Map
• Value Stream
Map
• Takt Time
• Run Chart
• Spaghetti
Diagram
• Process Flow
Diagram
• Variable/Attribute
Sampling Plan
• Benchmarking
• MSA
• Pareto Chart
• Defect
Characterization
• Lead Time, Cycle
Time, WIP
• C & E Diagram
• 5 Why’s
• RCA
• SPC
• Cp and Cpk
• Affinity Diagram
• Regression Surface
Regression
• FMEA
• ANOVA
• PICK Chart
• Pull System
• Production Leveling
• Changeover
Reduction
• TPM/RCM
• 5S + Safety
• Gantt Chart
• Pert/CPM
• Hypothesis Testing
• Boxplot Validation
• DOE
• DFLSS
• Visual Controls
• Standardized
Work
• Check Sheets
• Cleaning with
Inspection
• Mistake
Proofing
• Control Plan
• SPC
• Response Flow
Checklist
• Long Term
Stability
• Training &
Re-Training

Getting Started
Figure 1.4 Lean Six Sigma Tool Kit
Phase
Define 1. Define Problem Statement Project Prioritization Matrix Quality Function Deployment
2. Define Problem Scope Project Charter Template Voice of the Customer
3. Define Project Objective(s) Financial Analysis Kano Analysis
4. Define Project Metrics SIPOC Diagram Pugh Matrix
5. Calculate Financial Benefit
6. Select Team Members
Measure 7. Measure Current State Process Flow Diagram Variable/Attribute Sampling Plan
8. Validate Measurement System Basic Flow Chart Pareto Chart
9. Establish Reporting and Communication Mechanism for Metrics Swim Lane Map Check Sheet
Spaghetti Chart Run Chart
Current State Value Stream Map Measurement System Analysis
Analyze 10. Analyze Data to Identify Cause & Effect Relationships Scatter Diagram Histogram
11. Determine Process Capability and Speed Process Capability Analysis Hypothesis Testing
12. Determine Sources of Variation and Time Traps Supply Chain Accelerator Time Multiple Regression Analysis
Supply Chain Trap Analysis Analysis of Variance (ANOVA)
Affinity Diagram Cause and Effect Matrix
Cause and Effect Diagram Defect Characterization
Correlation Analysis Multivariate Analysis
Box Plot Failure Mode and Effect Analysis
Marginal Means Plot Statistical Process Control Chart
Interactions Plot Takt Time
Root Cause Analysis Theory of Constraints
Improve 13. Develop Solution Alternatives Based Upon Validated Root Causes Benchmarking Production Leveling
14. Conduct Experiments to Validate Solution Alternatives PICK Chart Work Cell
15. Iterate Analyze/Improve Phases to Identify Optimum Solution Pull Systems/Kanban Fault Tree Diagram
Setup Reduction Gantt Chart
Total Productive Maintenance Pert Chart
Reliability Centered Maintenance Critical Path Management
Single Minute Exchange of Dies Future State Value Stream Map
Design of Experiments 5S+Safety
Evolutionary Operation (EVOP) Design for Lean Six Sigma (DLSS)
Control 16. Sustain the Gains Control Plan Statistical Process Control
17. Develop Control Plan Check Sheet Training
18. Document New Work Standard Refresher Training Process Trouble-Shooting Diagram
19. Train Personnel on New Work Standard Process Trouble-Shooting Guide Poka-yoke
20. Monitor Performance Visual Controls Standardized Work
21. Mistake-proof Process
ToolsActivity

Getting Started
Does Lean Six Sigma Apply to Me?
• You may be wondering at this point … “I am not making automobiles, I am not
making integrated circuits, I am not manufacturing anything.
• How can Lean Six Sigma apply to me?”
• Well it can and it does.
• Whether you are the manager of a call center, the director of an investment
banking firm or the CEO of an insurance entity your company relies on the
successful execution of multiple processes which get work done.
• Since Lean Six Sigma is a process improvement methodology it applies equally well
in the manufacturing and service sectors.

Getting Started
Can I Afford to Implement Lean Six Sigma in my Company?
• You may be also wondering … “My company is small with limited resources, can I
afford to implement Lean Six Sigma within my company?”
• Lean Six Sigma training of key personnel within your company is meant to augment
their formal education and detailed process knowledge acquired through their job.
• This training will allow them to do their job faster, reduce errors and increase
internal and external customer satisfaction.
• They need not be dedicated resources with a change in job description and/or
accountabilities.
• The bottom line is that all companies must have a working system of continuous
improvement to prevent their lunch from being eaten by the competition.
• Remember … Toyota started out as a tiny company in the 1950’s.

Getting Started
Operational Excellence Deployment Plan
• A deployment plan is recommended to keep your Operational Excellence initiative
on track.
• The plan follows the DMAIC process.
• We will step through each section of the deployment plan together to ensure that
your Operational Excellence initiative is a success.
OPEX Deployment Plan - Define
Duration J F M A M J J A S O N D
Executive Committee
Executive Lean Six Sigma Leadership Training 3 days
Steering Team Member Selection 1 day
Steering Team
Charter 5 days
Lean Six Sigma Training Provider Selection 10 days
Select Plant or Business Unit Champions 1 day
Lean Six Sigma Training Provider
Champion Training 5 days
DEFINE

Getting Started
• The first step in operational excellence deployment is executive engagement.
• Lean Six Sigma is a top-down improvement strategy.
• It must be actively supported by management or it will wither and die.
• The tools and techniques of Lean Six Sigma have been tried and proven to work
but the improvements will not be sustained unless the executive leadership rolls
up their sleeves and actively participates in the improvement process as opposed
to tacit endorsement.
• An excellent way to get the executive team engaged is for members of the
executive committee to attend a three day Executive Lean Six Sigma Leadership
training program hosted by a reputable Lean Six Sigma consultant.
• There are many top-notch Lean Six Sigma consultants.
• You will want to conduct interviews with prospective training providers to ensure
that they have an understanding of your business/market and have successfully
conducted leadership training with peer companies.

Getting Started
• Consultants tend to gravitate to industry specialties such as health care, aerospace,
banking, manufacturing, service sector, etc.
• It is important to select a consultant that has prior experience in your type of
business to ensure that objectives are aligned.
• A typical Executive Lean 6σ Leadership training agenda is included in Figure 2.2.
• Notice that there are several exercises built into the training plan.
• This is essential to ensure that participants develop working team harmony and
remain engaged throughout the training period.
• Interruptions such as phone calls, emails, personnel visits, etc. must be strictly
avoided and called out as part of the training ground rules.
• At the conclusion of the training your executive team will have bought-in to the
Lean Six Sigma methodology for continuous improvement and be eager to begin
the implementation within your company.

Getting Started
Figure 2.2 Executive Lean Six Sigma Leadership Training Agenda
1. Introductions
2. Goals of the Training
3. Ground Rules
4. Team Building Exercise
5. Introduction to Lean Principles
6. Lean Case Study
7. Hands-on Lean Exercise
8. Introduction to Six Sigma Principles
9. The DMAIC Process
10. Six Sigma Case Study
11. Hands-on Six Sigma Exercise
12. Strategic Link of LSS to Business Objectives
13. Leadership's Roles and Responsibilities
14. Infrastructure Development
15. Deployment Plan
16. High Performance Team Dynamics
17. Project Selection and Portfolio Management
18. Metrics Selection and Communication Mechanism
19. Critical Factors for Success
20. Failure Modes to Avoid
21. Sustainment Plan
Executive Lean Six Sigma Leadership Training Agenda

Getting Started
• The next step is selection of the Operational Excellence Steering Team.
• Team size should be three to six members.
• Membership selection will depend to a large extent on the type of business your
company is engaged in.
• Typically, manager and director level people are included on the Steering Team
since the authority to allocate resources will be required.
• In the case of a manufacturing company, the Quality Manager, Production
Manager, Maintenance Manager and Human Resources Manager would be good
candidates for Steering Team membership.
• A service-based company might include the Customer Service Manager, Sales
Manager, Information Systems Manager and Human Resources Manager.
• The leadership of the Steering Team should be assigned to one of the members
that has demonstrated a high level of organizational skills, attention to detail,
facilitation skills and program management.

Getting Started
• It is important to select results-oriented people for the Steering Team which have a
proven track record of getting things done since they will be the driving force of
the Operational Excellence initiative within your company.
• The first task of the Steering Team is to define their charter.
• A template for this purpose is included in Figure 2.3, a completed manufacturing
example in Figure 2.4 and a completed service example in Figure 2.5.
• The Steering Team Charter should be a concise summary of the key aspects of your
Operational Excellence initiative.
• Try to limit it to one page and avoid the use of ethereal language.
• In some cases it may be appropriate for the team sponsor to also be a team
member.
• The objectives should be written in SMART format – Specific, Measurable,
Achievable, Relevant and Time-based.

Getting Started
Figure 2.3 Operational Excellence Steering Team Charter Template

Getting Started
Figure 2.4 Operational Excellence Steering Team Charter for Manufacturing

Getting Started
Figure 2.5 Operational Excellence Steering Team Charter for Service

Getting Started
• When you choose your performance metrics to track the progress of your
Operational Excellence initiative try to choose metrics that are timely, relevant and
show the true picture of your business situation without revealing confidential
information.
• Your communication mechanism must be able to show validated improvement
results on a monthly basis.
• The Steering Team will conduct telephone and face to face interviews with
prospective Lean Six Sigma Training Providers in order to select the training
resource for your company.
• The type of training required and the recommended number of trainees is
summarized in Figure 2.6.
• Motorola popularized the use of belt colors similar to that used in Karate to denote
training level.
• Black Belt and Green Belt are the most common levels of Lean Six Sigma training
but there are other colors to denote intermediate levels of training.

Getting Started
Figure 2.6 Lean Six Sigma Training Requirements
Green Belt
• 1 week Lean Training
• 1 week Statistics Training
• Proficient in basic LSS Tool Set
• Leads Process Improvement
Projects
• 4% of Work Force
Black Belt
• 2 weeks Lean Training
• 2 weeks Statistics Training
• Proficient in advanced LSS Tool Set
including Design of Experiments
and Design for Six Sigma
• Leads High $ Value, Strategic
Process Improvement Projects
Champion
• 1 week Champion Training
• Management Team Member
• Authority to Allocate
Resources
• Liaison to Business Unit
• Basic Understanding of LSS
Tool Set
• One Per Plant or Business
Unit
Green Belt
• 1 week Lean Training
• 1 week Statistics Training
• Proficient in basic LSS Tool Set
• Leads Process Improvement
Projects
Black Belt
• 2 weeks Lean Training
• 2 weeks Statistics Training
• Proficient in advanced LSS Tool Set
including Design of Experiments
and Design for Six Sigma
• Leads High $ Value, Strategic
Process Improvement Projects
Champion
• 1 week Champion Training
• Management Team Member
• Authority to Allocate
Resources
• Liaison to Business Unit
• Basic Understanding of LSS
Tool Set
• One Per Plant or Business
Unit

Getting Started
• It is essential that the training provider understand your type of business and be
able to bond with, and relate to, the hands-on working level employee within your
company.
• For this reason the selected training consultant may or may not be the same which
provided your company with Executive Lean Six Sigma Leadership Training.
• Some consultants excel at delivering the strategic business vision of Lean Six Sigma
while others excel at the hands-on factory level or service level deployment of
Lean Six Sigma.
• A key question to ask is the type of software that will be used to support the
training.
• You will find that consultants are passionate about their software selection.
• Some prefer Minitab, while others prefer SPC XL/DOE Pro XL, JMP, Statistica,
StatPlus or a number of others.
• The learning curve of these respective software packages and the cost of
deployment within your organization must be carefully considered.

Getting Started
• The Steering Team must now decide who will be the people to drive Lean Six
Sigma at the plant or service operations level.
• These will be the Champions of the Operational Excellence initiative.
• You will want to select people that are genuinely excited and enthusiastic about
attacking problems through a methodical system of continuous improvement.
• In a manufacturing plant the Plant Manager is typically the Champion while in the
service sector the Business Unit Manager is typically the Champion.
• The final step of the define phase of the Operational Excellence Deployment Plan
is the training of your Champions.
• A typical Champion training agenda is included in Figure 2.7.

Getting Started
Figure 2.7 Lean Six Sigma Champion Training Agenda
1. Introductions
2. Goals of the Training
3. Ground Rules
4. Team Building Exercise
5. Fundamentals of Lean Principles
6. Lean Case Study
7. Hands-on Lean Exercise
8. Fundamentals of Six Sigma Principles
9. The DMAIC Process
10. Six Sigma Case Study
11. Hands-on Six Sigma Exercise
12. Strategic Link of LSS to Business Objectives
13. The Champion's Role and Responsibilities
14. Questions a Champion Must Answer
15. Project Selection and Prioritization
16. Project Charter Evaluation
17. Decision-Making Tools
18. Resource Allocation
19. High Performance Team Development
20. Infrastructure Development
21. Project Management
22. DMAIC Toll Gate Phase Reviews
23. Lean Six Sigma Communication Mechanisms
24. Critical Factors for Success
25. Failure Modes to Avoid
26. Engendering Lean Six Sigma into Daily Operations
Lean Six Sigma Champion Training Agenda

Getting Started
OPEX Deployment Plan - Measure
• Vince Lombardi once said “If you’re not keeping score, you’re just practicing.”
• As in football, a business must also keep score.
• There are many metrics by which your company may keep score, but are they
sufficiently descriptive to ensure that your company is customer-focused and using
its assets most efficiently?
• Figure 2.8 includes common Lean Six Sigma metrics for manufacturers.
• Figure 2.9 includes common metrics for service-based companies.
Steering Team
Establish Lean Metrics/Key Performance Indicators to be
tracked 1 day
Compile last 12 month's history of Key Performance
Indicators 5 days
MEASURE

Getting Started
Figure 2.8 Lean Six Sigma Metrics for Manufacturing
Number of Inventory Turns per Month First Pass Quality Yield
Days of Inventory on Hand Safety Incident Rate
Defects per Million Opportunities Overall 5S Rating
Total Value Stream Work in Process Average Changeover Time
Total Cycle Time Number of Customer Complaints
Total Lead Time Customer Complaint Severity Rate
Takt Time % Preventive Maintenance Work
Uptime % Emergency Maintenance Work
On-Time Delivery Rate Downtime due to Equipment Failure
Overall Equipment Effectiveness (OEE) Mean Time Between Failures (MTBF)
Lean Six Sigma Metrics - Manufacturing
Figure 2.9 Lean Six Sigma Metrics for Service
Customer Wait Time Total Lead Time
Net Customer Growth Rate On-Time Delivery Rate
Number of Customer Complaints Safety Incident Rate
Customer Complaint Severity Rate Overall 5S Rating
Mistakes/Errors per Million Opportunities Warranty Claim Rate
Total Cycle Time Revenue per Employee
Lean Six Sigma Metrics - Service

Getting Started
OPEX Deployment Plan - Measure
• The type of metrics you select to track will depend largely on the type of business
you are engaged in.
• Avoid analysis paralysis – choose the metrics which are relevant to your business
and watch them like a hawk.
• A common sign of a struggling company is yet another call from the “boys at head
office” asking for the same data presented in a different chart format.
• Now that you have identified the Key Performance Indicators (KPI) which measure
the heartbeat of your business, it is time to compile the last twelve month’s of
benchmark performance for these metrics within your company.
• This completes the measure phase of the Operational Excellence Deployment Plan.

Getting Started
OPEX Deployment Plan - Analyze
• During compilation of the Key Performance Indicators of the measure phase you
probably encountered some disturbing trends which required investigation.
• Thinking in terms of the Lean Wastes which Taiichi Ohno identified and the sources
of variation which result in poor quality, the Steering Team must drill down to the
root causes of these trends. This will lead to a list of potential Lean Six Sigma
Projects. Recognizing that companies have limited resources we need a method to
decide which projects to work on first.
• The Project Prioritization Matrix of Figure 2.10 is a useful tool to accomplish this
task. A completed example is presented in Figure 2.11.
Steering Team
Analyze Key Performance Indicator history for Lean wastes
and process variation 3 days
Develop list of potential projects to reduce wastes and
variation 2 days
Executive Committee
Select Project Priority Aspects and Weighting Factors 1 day
Steering Team
Complete Project Prioritization Matrix to identify highest
impact projects 1 day
Select Black Belt Candidates to Lead Individual Projects 1 day
Select Green Belt Candidates to Lead Individual Projects 1day
ANALYZE

Getting Started
Figure 2.10 Project Prioritization Matrix Template
Instructions:
1) Executive Committee decides the aspects which are important to the company.
2) Executive Committee rates the importance of each aspect in accomplishing business objectives.
10 = Very Important, 5 = Moderately Important, 0 = Not Important
3) Individual projects are rated for their impact on the aspects identified in (1) above.
Ask yourself this question ... If the objectives of this project are accomplished, how would the
improvement affect Aspect 1?, Aspect 2?, etc.
10 = High Impact, 5 = Moderate Impact, 0 = No Impact
4) Project impact is multiplied by the aspect rating and summed across the aspects yielding the
Overall Project Value Rating
5) The Overall Project Value Rating can be used to prioritize projects which compete for scarce
resources. Projects with the highest value rating offer the most potential benefit to the company.
Aspect1
Aspect2
Aspect3
Aspect4
Aspect5
Aspect6
Aspect7
Aspect8
Project
No. Project Description
1 0
2 0
3 0
4 0
5 0
Rating of Aspect Importance to
Business Objectives
OverallProjectValueRating
Project Prioritization Matrix

Getting Started
Figure 2.11 Project Prioritization Matrix Example
4) Project impact is multiplied by the aspect rating and summed across the aspects yielding the
Overall Project Value Rating
5) The Overall Project Value Rating can be used to prioritize projects which compete for scarce
resources. Projects with the highest value rating offer the most potential benefit to the company.
7 5 8 6 3 9 7 4
Revenue
Growth
CustomerSatisfaction
RiskManagement
CycleTimeReduction
CostSavings
CashFlow
EaseofImplementation
Project
No. Project Description
1 Reduce Defects on Line 3 by 50% 4 6 9 4 5 7 8 4 304
2
Increase Preventive/Emergency
Maintenance ratio from 0.33 to 1.00
3 5 7 8 5 6 4 5 267
3
Reduce Finished Goods Inventory by
40%
5 6 4 6 7 6 9 6 295
4
Centralize Purchasing & Production
Planning Departments
5 6 4 5 4 6 6 3 247
5
Build On-Line Customer Order Entry
Website
7 8 9 5 6 5 7 4 319
Rating of Aspect Importance to
Business Objectives
OverallProjectValueRating

Getting Started
• The Executive Committee decides which project aspects are important to the
operational business strategy of the company and the relative importance of each
aspect is assigned as a weighting factor.
• The Steering Team then rates individual projects on a scale from zero to ten for the
impact the successfully completed project will have on that aspect.
• Project impact is multiplied by the aspect rating and summed across the aspects
yielding the Overall Project Value Rating.
• The higher the Overall Project Value Rating the more attractive the project is to
meeting the strategic business objectives of the company.
• Upon closer inspection of the example in Figure 2.11 you might be asking “Why
would the Executive Committee select Ease of Implementation as an aspect?”
• This is a qualifying aspect which allows the Executive Committee to discriminate
between low hanging fruit and more difficult projects.
• If the Executive Committee wants to focus on projects which can be rapidly
completed they would assign a high weighting factor to this aspect.

Getting Started
• In this case, the Executive Committee has decided that low hanging fruit projects
would already have been completed by the more traditional methods of
continuous improvement thus diminishing the importance of this aspect.
• Now we have a prioritized set of projects which will lead us to select the resources
to drive these projects to completion.
• Think about the most important project identified through the project
prioritization matrix.
• Who should be on the team? Who should be the project lead?
• Since this is the most important project to the company the project lead should be
a trained Lean Six Sigma Black Belt.
• The team should consist of four to seven members (including the project lead)
who have intimate knowledge of the process in question and are a stake-holder in
the benefits of the improvement actions.
• The team should include one or two trained Lean Six Sigma Green Belts. Thus, you
can see that Lean Six Sigma training candidates are identified by the priorities of
the business.

Getting Started
• This is the difference between a Lean 6σ revolution versus a Lean 6σ evolution.
• In the former case a company decides to jump feet first into the Lean Six Sigma
improvement methodology and begins training multiple belt candidates
simultaneously. The latter case represents targeted training provided first to the
company associates who can have the biggest impact on business objectives.
• For most companies the Lean Six Sigma evolution route is more pragmatic and cost
effective since a portion of the benefits derived from completed projects can be
applied to future Lean Six Sigma training costs.
• Figure 2.12 compares the roles and pre-requisites of Lean Six Sigma belt
candidates. This will aid you in selecting Black Belt and Green Belt candidates.
• Training class sizes are typically from twenty to twenty-four people. You will want
to maximize the class size to dilute the fixed costs of the consultant.
• It is also a good idea to have a waiting list of two to four candidates in case there
are last minute conflicts which reduce the class size.
• This completes the analyze phase of the Operational Excellence Deployment Plan.

Getting Started
Green Belt Black Belt Champion
Profile Technical background Technical degree Technical degree
Respected by peers Respected by peers and management Respected leader and mentor of
business issues
Proficient in basic Lean Six Sigma
(LSS) tools
Master of basic and advanced LSS tools Strong proponent of Operational
Excellence who asks the right questions
Role Leads important process improvement
teams
Leads strategic, high impact process
improvement projects
Secures resources to support
Operational Excellence projects
Conducts process experiments Creates experimental design (DOE) Responsible for plant-wide deployment
of Operational Excellence
Implements improvement actions Analyzes DOE to derive conclusions
and recommendations
Window person to Business Unit
Facilitates team deliverables Teaches and mentors cross-functional
team members
Window person to Operational
Excellence Steering Team
Agent of change
Converts gains into $
Training Two 1-week sessions with three weeks
in between to apply training in plant
Four 1-week sessions with three weeks
in between to apply training in plant
One week Champion Training
Project review in 2nd week Project review in 2nd, 3rd and 4th
weeks
Training
Pre-requisites
2 yr Associate's Degree or relevant
work experience
4 yr Bachelor's Degree in a technical
discipline
Same as Black Belt
Basic understanding of statistics Previous course work in statistics Understanding of Business Unit
Certification
Requirements
Complete classroom training with
minimum score of 80% on exams.
Sucessfully complete one LSS project.
Complete classroom training with
minimum score of 80% on exams.
Sucessfully complete two LSS projects.
N/A
Recommended
Numbers 4% of Work Force 2% of Work Force One Per Plant or Business Unit
Figure 2.12 Comparison of Lean Six Sigma Roles

Getting Started
OPEX Deployment Plan - Improve
• The first step of the improve phase is to provide hands-on classroom training to
the Black Belt and Green Belt candidates identified during the analyze phase.
• Lean Six Sigma Black Belt Training is provided first since these candidates will lead
the high impact projects.
• They will also serve as mentors and coaches to the Green Belts within your
organization.
• This is an essential part of the Learning Based Management System.
Lean Six Sigma Training Provider
LSS Black Belt Training 20 days
LSS Green Belt Training 10 days
LSS Black Belt Candidates
Apply DMAIC process to Black Belt Projects 3 - 6 months
LSS Green Belt Candidates
Apply DMAIC process to Green Belt Projects 1 - 3 months
Steering Team
Establish and Maintain Master Project List Including Status 1 day
Establish Operational Excellence Communication Mechanism
within Company 3 days
IMPROVE

Getting Started
• A typical Black Belt training agenda is included in Figure 2.13 and a Green Belt
training agenda in Figure 2.14.
• The first week of training will cover project selection, definition, project charter
and project management.
• Black Belt candidates will have already had their project selected as part of the
project prioritization step of the Operational Excellence Deployment Plan.
• Green Belt candidates may or may not have been assigned a project prior to
beginning their training.
• Lean Six Sigma is a find a fix methodology.
• It can be used to solve any problem.
• You do not have to invent projects which you perceive to neatly fit into Lean or
neatly fit into Six Sigma.
• Projects, however, which have an identified root cause and an identified solution
are typically not good choices for Lean Six Sigma projects.

Getting Started
Figure 2.13 Lean Six Sigma Black Belt Training Agenda
Lean Six Sigma Black Belt Training Agenda
1. Introductions 20. Analyzing Data using Graphical Tools
2. Goals of the Training 21. Statistical Process Control (SPC)
3. Ground Rules 22. Measurement System Analysis
4. Team Building Exercise 23. Root Cause Analysis
5. Lean Six Sigma Fundamentals 24. Theory of Constraints
6. The DMAIC Process 25. Data Types and Distributions
7. Project Selection and Definition 26. Variable/Attribute Sampling Plans
8. Voice of the Customer 27. Hypothesis Testing
9. Project Charter 28. Confidence Intervals
10. Project Management 29. Analysis of Variance (ANOVA)
11. High Performance Team Dynamics 30. Multiple Regression Analysis
12. Lean Six Sigma Communication Mechanisms 31. Design of Experiments (DOE)
13. Process Definition 32. Design for Six Sigma (DFSS)
14. SIPOC Diagram 33. Failure Mode Effects Analysis (FMEA)
15. Process Mapping 34. Reliability Centered Maintenance
16. 5S + Safety 35. Mistake-Proofing
17. Value Stream Mapping 36. Control Plan
18. Cause & Effect Matrices and Diagrams 37. Engendering Lean Six Sigma into Daily Operations
19. PICK Chart

Getting Started
Figure 2.14 Lean Six Sigma Green Belt Training Agenda
Lean Six Sigma Green Belt Training Agenda
1. Introductions 16. Value Stream Mapping
2. Goals of the Training 17. Cause & Effect Matrices and Diagrams
3. Ground Rules 18. PICK Chart
4. Team Building Exercise 19. Analyzing Data using Graphical Tools
5. Lean Six Sigma Fundamentals 20. Statistical Process Control (SPC)
6. The DMAIC Process 21. Measurement System Analysis
7. Project Selection and Definition 22. Root Cause Analysis
8. Voice of the Customer 23. Data Types and Distributions
9. Project Charter 24. Variable/Attribute Sampling Plans
10. High Performance Team Dynamics 25. Hypothesis Testing
11. Lean Six Sigma Communication Mechanisms 26. Confidence Intervals
12. Process Definition 27. Analysis of Variance (ANOVA)
13. SIPOC Diagram 28. Regression Analysis
14. Process Mapping 29. Mistake-Proofing
15. 5S + Safety 30. Control Plan

Getting Started
• For example, the project “Replace worn out mold on Extrusion Press Number 12
with new mold” would not be a good Lean Six Sigma project candidate.
• The root cause of the failure is known – it is routine end of life equipment
maintenance.
• The solution is known – replace the mold.
• There is nothing to measure or analyze.
• This is a “Just Do It” project.
• Now, if the expected mold life is 3 years and the Mean Time Between Failures
(MTBF) is 6 months there is an underlying set of cause(s) which have implications
to your Reliability Centered Maintenance Program.
• Finding and correcting the causes of premature tool failure would be a good Lean
Six Sigma project.

Getting Started
• The culmination of the project selection and definition process is the Project
Charter.
• A template is provided in Figure 2.15, a completed manufacturing example in
Figure 2.16 and a completed service example in Figure 2.17.
• This is the Project Leader’s promise of what will be accomplished by when, and
how the improvement will be validated.
• Black Belts will present their project progress to the class at the beginning of
weeks two, three and four.
• Green Belts will present their project progress at the beginning of week two.
• It is a good idea for the Steering Team to be present during these project reviews.
• This demonstrates management’s sustained commitment to the Operational
Excellence Initiative.

Getting Started
Figure 2.15 Operational Excellence Project Charter Template

Getting Started
Figure 2.16 Operational Excellence Project Charter Example for Manufacturing

Getting Started
Figure 2.17 Operational Excellence Project Charter Example for Service

Getting Started
• Operational Excellence projects are successfully implemented by following the
DMAIC process as indicated in Figure 2.18.
• A key aspect of successful project implementation is the project review which
occurs between DMAIC phases.
• This is the opportunity for management to provide input to the project to remove
obstacles, provide additional information or resources and ensure that the project
is on track to achieving the objectives defined in the project charter.
• The Steering Team must keep track of the status of open Lean Six Sigma Projects
within the organization.
• This can be accomplished by a stand-alone database, a database connected to
your company’s intranet, or by a simple spreadsheet such as the template included
in Figure 2.19 and the example included in Figure 2.20.
• Including a picture of the project lead personalizes the project ownership and
promotes individual accountability within your organization. Now you have a living
and breathing document which summarizes the open and closed Operational
Excellence projects within your company.

Getting Started
Figure 2.18 Operational Excellence Project Implementation
PR PR PR PRDefine
• Define Problem
Statement
• Define Problem Scope
• Define Project
Objective(s)
• Define Project Metrics
• Define Financial Benefit
of Project
• Select Team Members
Measure
• Measure Current State
• Validate Measurement
System
• Establish Reporting and
Communication
Mechanism for Metrics
Analyze
• Analyze Data to Identify
Cause & Effect
Relationships
• Determine Process
Capability and Speed
• Determine Sources of
Variation and Time Traps
Improve
• Develop Solution
Alternatives Based Upon
Validated Causes
• Conduct Experiments to
Validate Solution
Alternatives
• Iterate Analyze/Improve
Phases to Identify
Optimum Solution
Control
• Sustain the Gains
• Develop Control Plan
• Document and Train
New Work Standard
• Monitor Performance
• Mistake-proof Process
PR Project Review
• Project Team presents to Plant/Business Unit Leadership Team current
status of project between DMAIC phases
• Ensures that phase deliverables are provided before proceeding to the
next phase of DMAIC
• Ensures that project remains on track to achieving targeted goals
• Allows Plant/Business Unit Leadership Team input to suggest tools,
techniques and information sources to facilitate project completion

Getting Started
Figure 2.19 Operational Excellence Project Tracking Template
Operational Excellence Project Portfolio Open Projects
Completed Projects
Project
Number
Project Owner
Project
Summary
Problem
Description
Objectives
Project
Start
Date
TCD
Actual
Completion
Date
Forecast
Benefit
($/yr)
Actual
Benefit
($/yr)
Project Status Location Cert
Project
Cycle
Time
(days)
Last
Name
First
Name Picture

Getting Started
Figure 2.20 Operational Excellence Project Tracking Example
Operational Excellence Project Portfolio Open Projects
Completed Projects
Last
Name
First
Name Picture
TOP0001 Blackburn Tom Increase heart catheter
coextrusion yield from
85% to 96% on Line 3
in Topeka.
Heart Catheter
Coextrusion Yield on
Line 3 has historically
been below 85%.
Primary defects
resulting in rejected
parts are bubbles,
contaminants and out-
of-specification
dimensions. Process
capability index Cpk of
dimensional control is
only 1.06.
1) Increase Heart
Catheter Coextrusion
Yield average from
85% to 96% by
September 30th. 2)
Increase dimensional
control Cpk from 1.06
to 1.33 by October
30th.
June 29 Oct 30 $205,000 July 15 Update: Had
1st team meeting on July
6th. Reviewed project
charter. Established
metrics chart and
communication board.
Generated Cause &
Effect Matrix and
Fishbone Diagram. Will
prioritize solution ideas
via PICK chart at next
meeting scheduled for
August 6th.
Topeka, KS BBIT
DUS0001 Hendricks Kristin Decrease order
fulfillment time and
increase inventory
turns at distribution
sites in Germany,
South Africa and Hong
Kong.
Order fulfillment cycle
times to European and
Asian customers are
averaging 12 business
days. We do not have
the required material in
inventory when the
customer places their
order even though our
monthly inventory
turnover rate is 0.33.
Consequently,
customers withdraw
their order and place it
with one of our
competitors.
1) Decrease order
fulfillment time from 12
to 2 business days by
September 30th. 2)
Increase monthly
inventory turnover rate
from 0.33 to 1.0 by
October 30th.
June 29 Oct 30 $450,000 July 15 Update: Had
1st team meeting on July
3rd. Reviewed project
charter. Created current
state Value Stream Map.
Identified time traps and
accumulation of
inventory. Generated list
of slow moving stock.
Will prioritize solution
ideas to eliminate time
traps and reduce
inventory via PICK chart
at next meeting scheduled
for August 3rd.
Dusseldorf,
Germany
BBIT
Project
Cycle
Time
(days)
Project Summary Problem Description
Actual
Completion
Date
Project Status
Project Owner
Objectives
Project
Start Date
TCD
Forecast
Benefit
($/yr)
Actual
Benefit
($/yr)
Project
Number
CertLocation

Getting Started
• The next step is to decide the methods of communication for your company’s
Operational Excellence efforts.
• There are several ways to do this such as monthly newsletters, bulletin boards
placed in strategic locations, intranet website postings, emailing monthly progress
reports, etc.
• The Steering Team should also plan to present once per quarter to the Executive
Committee face to face.
• This concludes the improve phase of the Operational Excellence Deployment Plan.

Getting Started
OPEX Deployment Plan - Control
• The final phase of the deployment plan is to sustain the continuous improvement
inertia which has been developed, and engender the Lean Six Sigma methodology
within your company’s operating culture.
• It is necessary for the Steering Team to participate in Lean Six Sigma Project
Reviews to ensure that projects remain on track and the deliverables are provided
by the project team for each of the DMAIC phases.
• The project review checklist of Figure 2.21 summarizes the typical set of
deliverables from each of the DMAIC phases and the questions to ask to ensure
that the project is ready to proceed to the next phase.
Steering Team
Participate in LSS Project Reviews 3 - 6 months
Integrate Reliability Centered Maintenance into Continuous
Improvement Plans 1 - 3 months
Validate Effectiveness of Improvement Actions 1 - 3 months
Participate in Black Belt/Green Belt Certification Process 1 - 3 months
Integrate LSS Training Function within Company 3 - 6 months
Conduct New Hire Training as req'd
Conduct Refresher Training annually
Identify Next Set of Project Priorities 1 day
CONTROL

Getting Started
Figure 2.21 Operational Excellence Project Review Checklist

Getting Started
• Periodic visits to the plants/service centers will allow the Steering Team to validate
the effectiveness of the improvement actions implemented by the project teams.
• The Japanese call this Genchi Genbutsu which means “go and see with your own
eyes”.
• It is obvious that control will be jeopardized if plant equipment is not being
operated or maintained correctly.
• Thus, it is natural for the improvement efforts of your organization’s Total
Productive Maintenance/Reliability Centered Maintenance program to be
incorporated into your Operational Excellence program.
• This integration will spawn a number of maintenance-based Lean Six Sigma
projects which will increase the operational reliability of your plant(s).
• Since the Steering Team has been involved in the project review process
throughout the DMAIC phases, it is logical that they participate in the final project
outbrief which will lead to candidate certification as a Lean Six Sigma Black Belt or
Green Belt.

Getting Started
• Typically, the consultant who provided Lean Six Sigma training will be present at
the final project outbrief as they must validate that training tools have been
correctly applied.
• Use the certification milestone to recognize the achievement of the project
lead/team in accomplishing their goals.
• Take advantage of this public relations opportunity to update the achievements of
the Operational Excellence initiative within your organization.
• During the Lean Six Sigma training which has occurred during the improve phase
you may have noticed that the training provider puts a “spin” on the training by
using anecdotal examples from their past.
• This is human nature. We are all a product of our past experiences.
• You may, however, desire the training examples and case studies to be specific to
your type of industry or service, or perhaps even generated within your company.
• In this case you may want to integrate the Lean Six Sigma training function within
your organization.

Getting Started
• This is best accomplished by identifying a certified Black Belt within your company
which has demonstrated aptitude and enthusiasm in using the tools of Lean Six
Sigma and would like to expand their role to that of teacher.
• An additional week of “Train the Trainer” classroom education provided by your
Lean Six Sigma Training consultant will elevate the candidate to the level of Master
Black Belt and provide the new teacher with the foundation to assume this role.
• The next step is for the Master Black Belt to build the training curriculum and
support materials necessary for integrated training within your company.
• This can take from three to six months.
• As with any technical training, the subject matter is constantly evolving.
• The Master Black Belt must keep their curriculum current with the best available
improvement tools of Lean Six Sigma to ensure that your in-house training
program remains cutting-edge.
• Lean Six Sigma refresher training for Black Belts and Green Belts should be
conducted once per year.

Getting Started
• New hire training should be conducted as required to support the next set of
project priorities identified by the Steering Team.
• The DMAIC process of project management is then applied to this next set of
priorities which may utilize certified Black Belts and Green Belts and/or Black Belts
and Green Belts in Training (BBIT and GBIT respectively).
• This concludes the control phase of the Operational Excellence Deployment Plan.
• Throughout the deployment, it is expected that the language, acronyms, and most
importantly, the improvement methodology rub off on other company associates.
• Consequently, associates take a more systematic approach to solving problems in
their functional areas.
• The tools of Lean Six Sigma need not be applied solely to projects.
• In fact, the gains are an order of magnitude higher if these tools are built into the
daily operating DNA of the company.

Operational Excellence – Getting Started

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