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8/10/2019 1-8 Lean Six Sigma Training
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Lean Six Sigma
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Lean Six Sigma2
Overview
What is Lean Six Sigma?
What can Lean Six Sigmado?
How to get started
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Lean Six Sigma3
Paths to Cost Reduction
Cut services
Reduce labor (lay-off) Contract work out
Eliminate product features
Remove roadblocks so youremployees can produce
Assign resources tobottlenecks
Maximize internal capabilities
Focus on what the customerwants to buy
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Lean Six Sigma4
What is Lean Six Sigma?
Combined 2 industry concepts:
Lean
Six Sigma
Combines problem solving tools:
JIT - Pull
5S
Value
StreamMapping
VisualMgt.
KanbanANOVA
Kaizen
SetupReduction
DFSS
Root CauseAnalysis
HypothesisTesting
DOE MSASPC
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Lean Six Sigma 6
Which is the better airline ticket?
Ticket A
$500 round trip 6 hours
3 layovers
Arriving in NYC
Ticket B
$650 round trip 3 hours
1 layover
Arriving inGroton/New London
Traveling to Groton, CT
What does value mean to you?
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Lean Six Sigma 7
Lean Philosophy
Value More to value than just cost
Defined by the ultimate customer Womack Voice of the Customer (VOC)
Expressed in terms of A specific product
A function or capability
Questions What does the customer want to buy?
What would they pay extra for?
Focus on what is of VALUE to the customer
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Lean Six Sigma 8
Types of Activities
Value-Added Brings product closer to its final form
Changes the form, fit or function
An activity the customer is willing to pay for
Non-Value-Added Does not contribute to bringing the product to its final form
Doesnt improve the form, fit, or function of the product or serviceon the first pass through the process.
An activity the customer is not willing to pay for
Waste
Separate non value added from value added
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Lean Six Sigma 9
8 Types of Waste
UNDER-UTILIZED
SKILLS
Steps are wasteful, people are valuable
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Lean Six Sigma 10
(2)
Tapped
holes for
lifting
Lean Example
Valve Manufacturing Objective: Reduce time to produce valves
Solution: Revise processno temporary attachments
Feet
LegsLifting
Blocks
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Lean Six Sigma 11
Lean Example
Certification Package
Not Required
Redundant ReviewMill Test Report
Minimize Rework
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Lean Six Sigma 12
Batch versus Continuous Flow
Process
A
Process
B
Process
C
10 Minutes10 Minutes
10 Minutes
30+ Minutes for order of 10
Batch & Queue Processing
Continuous Flow
ProcessA
ProcessB
ProcessC
12 Minutes fororder of 10
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Lean Approach
BatchDept 1
Dept 2
Dept 4
OUT
DONE
OUT
OUT
OUT
IN
IN
IN
IN
DONE
IN
4 3
1 2Dept 3
Continuous Flow
Batch processing has a direct impact
on the total Work-in-Process
From: NAVSEA VSA Training
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Lean Six Sigma 14
Value-Added time is typically only a small
percentage of the total time
Lean Approach
TimeBroken
Component
RepairedComponent
WaitTransport
Transport WaitSet-up
= Value Added Time = Non-Value-Added Time (WASTE)
Machine Machine
Disassemble
Start Finish
Re-Install
Remove FromShip
From: NAVSEA VSA Training
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Lean Six Sigma 15
Lean Approach From: NAVSEA VSA Training
Date / Reference / Classification
Overtype with Section Title
Total Lead-time = 48 days
Value added time = 315 secs!!!!
Date / Reference / Classification
Overtype with Section Title
-Total Leadtime = 48 days
Value added time = 315 secs!!!!
-
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Lean Six Sigma 17
Continuous Flow
Traditional Thinking:
Batch Productionlike a meanderingstream with many stagnant pools,
waterfalls, and eddiesDoubl ing pro duct ion rate means
doubl ing resources
Continuous Flow Thinking:
Pipeline with fast-flowing productno stops, piles, or back-ups
Doubl ing pro duc t ion rate means
halv ing the t ime wait ing
Flow production was an even more valuable innovation of Henry Fords
than his better-known mass production model.
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Lean Six Sigma 18
How Does LeanSolve Problems?
Focuses on what is of VALUE to thecustomer Understand customer expectations and
requirements In terms of the what the product provides,
not just the product itself
Eliminates activities that do not move theproduct closer to its final form Reduces the 8 types of waste
Creates continuous flow
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Lean Six Sigma 19
Six Sigma Philosophy
Reduce variation
Y=f(X)
Making decisions based on data
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Lean Six Sigma 20
What is Six Sigma?
Change in quality philosophiesTraditional Goalpost Philosophy
USLLSL
Loss
$$
Loss
$$
Anything outsidethe specification limits
represents quality losses
OK
Taguchi Philosophy
USLLSL
Any deviation fromthe target causeslosses to society
Loss
$$
Loss
$$
Loss
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Lean Six Sigma 21
How Does Six Sigma SolveProblems?
Practical Problem(Define/Measure)
Statistical Problem(Analyze)
Practical Solution
(Control)
Statistical Solution
(Improve)
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Lean Six Sigma 22
Six Sigma Example
Practical Problem Pass rate for Technicial Exams was declining
Statistical Problem Y=f(X)
YScores
X Exam section
Place of training
How often skills are used (experience)
Elapsed time since training
Statistical Solution
3 sections of the exam are the highest trouble spots Experience is the most significant factor in passing
Practical Solution Focus training on 3 areas for inexperienced technicians
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Lean Six Sigma 23
s
What is Six Sigma?99.99966% of values are within specifications
USLLSL
A 6sProcess
s s s
s
s s
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Lean Six Sigma 24
Is Six Sigma Overkill?
20,000 lost articles ofmail per hour
15 minutes of unsafe
drinking water each day 5,000 incorrect surgical
operations per week
2 short or long landings at
most major airports eachday
11 hours of no electricityper month
7 lost articles of mail perhour
1 minute of unsafe drinking
water per 7 months 1.7 incorrect surgical
operations per week
1 short or long landing
every 5 years
1 hour of no electricityevery 34 years
99.99966% (6s
)99% (3.8s
)
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Lean Six Sigma 25
Pipe Welding Quality
Reduce concave & convex defects in pipebutt welds
Convex
Concave
Experimented on the effects of: Purge pressure Starting point Weld segment overlap Intersegment temperature Welder technique
Identified key factors to control and ones that had no effect
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Lean Six Sigma 26
Effluent Discharge
Before After
Notice Required Months Days
Time to assemble Weeks Days
Cost Overhead Direct/Defined
Frustration High Low
SUBASESUBASE Test
Orgs
Test
Orgs
Main
Stores
Main
StoresHardware
Stores
Hardware
Stores
Controlled
Industrial
Facility
SUBASESUBASE Test
Orgs
Test
Orgs
Main
Stores
Main
StoresHardware
Stores
Hardware
Stores
Controlled
Industrial
Facility
Main StoresMain Stores
ControlledIndustrial
Facility
KIT 1
KIT 2
KIT 3
Main StoresMain Stores
ControlledIndustrial
Facility
KIT 1
KIT 2
KIT 3
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Lean Six Sigma 27
Value Stream Mapping
Tile Material Manufacturer Mapped the value stream
Identified key constraints
Implementing just go do its Identified specific resources needed to support 2 ships
per yearSub
vendor
Cleaned Day
tank
EB / NGNN
Raw
materials
Receive raw
materialsOven Agitate & oven
Combine, mix
& oven
Combine
mixture in large
tank
Make samples
and test themBlend/mix
Take sample,
cure and testFill Day tank
Sub
vendor
Inspect Day
tank
Day tank 1 then 2 to 3
weeks later Day tank
2
C/T= 1 day2 person
2 days2 people
5 days0 people
1 day1 person
1 day1.5 people
1 day1 person
1 day2 people
1 day1.5 people
10 days1 person
1 day2 people
EB places
PO with SII
Order raw
materials and
Day tank
3 mixer
batches to fill
1 Day tank
1.5 weeks
Sub
vendor
Cleaned Day
tank
EB / NGNN
Raw
materials
Receive raw
materialsOven Agitate & oven
Combine, mix
& oven
Combine
mixture in large
tank
Make samples
and test themBlend/mix
Take sample,
cure and testFill Day tank
Sub
vendor
Inspect Day
tank
Day tank 1 then 2 to 3
weeks later Day tank
2
C/T= 1 day2 person
2 days2 people
5 days0 people
1 day1 person
1 day1.5 people
1 day1 person
1 day2 people
1 day1.5 people
10 days1 person
1 day2 people
EB places
PO with SII
Order raw
materials and
Day tank
3 mixer
batches to fill
1 Day tank
1.5 weeks
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Lean Six Sigma 28
Ways To Get To Six Sigma
Identify critical inputs & control them
Quantifiable management
Measure performance
Decisions based on data
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Lean Six Sigma 29
Ways To Get To Six Sigma
Type 1 Corrective ActionCountermeasure
Type 2 Corrective ActionFlag
SPC/SPMEmpowered Operators
Type 3 Corrective ActionInspection
SPC/SPMOperators Not Empowered
Standard Operating Procedure
Warning SignalUsed to Detect Defects
SPC/SPM - Wallpaper
Best
Control Methods
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Lean Six Sigma 31
But we arent mass production
Product Families
Different products that follow the same steps
Processes
Repetitive tasks
For a product
For a service
For just normal day to day activities If its not the first time, then there is a
process.
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Supplier Lean Outreach
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Lean Six Sigma 33
Why Supplier Lean Outreach?
Extend Lean and Six Sigmato suppliers
ShipyardLabor
39%
30%
PurchasedMaterial
31%
GovernmentMaterial
Block III (SSN787) Costs
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Lean Six Sigma 34
Goal
Conduct joint process improvement projects
with VIRGINIA Class vendors to reducedefects, and cycle timevia the application
of Lean Six Sigmatools and techniques.
Create a win-winbetween supplier and EB
Tangible improvement
Benefits both companies
Funded for 2 projects/year
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Lean Six Sigma 35
Methodology
1. Voice of the Customer
All customers not just purchasing
2. Kick-off with Vendor
Identify problems, issues, roadblocks
3. Value Stream Analysis & Development ofImprovement Plan
4. Improvement Plan Execution andFollow-on Onsites
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How To Get Started
We all tend to concentrate on taking correctiveactions that we know how to take, not necessarily
concentrating on the problems we should correct
and the actions needed to correct (them).
- Eliyahu Goldratt
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Lean Six Sigma 37
How To Get Started
Involve the employees
Examine the detailed process with them
Empower them to make process changes to:
Eliminate non-value-added steps Keep adding value continuously without interruptions
Ask the right questions What can we do to save time?
Not: What can we do to savemoney?
Get to the root causes 5-Whys, etc.
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Lean Six Sigma 39
How To Get Started
Books to read:
Lean Thinking. Womack & Jones
Lean Six Sigma: Combining Six SigmaQuality With Lean Speed. M. L. George
Theory of Constraints. Goldratt
The Goal. Goldratt
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Lean Six Sigma 40
How To Get Started
Communicate with Electric Boat
Things you are doing
Ask for clarification on our needs
Voice of the Customer
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Wrap - Up
What is Lean Six Sigma?
What can Lean Six Sigmado?
How to get started