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Introduction to Lean Six Sigma
Tamsin Freemantle, Justin Jacobs and
Lydia Oliver
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Introductions
► Demystifying the P word
► A brief history of process
► Process improvement gold dust
– Variation
– Waste
► Sticky fixes
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Let’s play with Lego – Round One
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Work Place Rules & Regulations
1. Follow your job specifications exactly. Do not change or
get out of your seats.
2. Completed work can only be moved between ‘work
stations’ (Operators and Quality Manager) by the
Transportation Manager.
3. Work can only be shipped when a complete batch has
been made. A batch for this round consists of 6 Units.
Each team needs to produce a minimum of 12
completed products.
4. Broken units must not be repaired and should be put
into a waste pile.
5. If you run out of Lego stock or have nothing to do,
either tell the Production Manager or don’t!
6. On completion of the round and when instructed,
dismantle parts and return to starting positions.
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Let’s play with Lego – Round One
Now turn over and read
your role profiles….
Gather a handful
of the Lego you
need….
Round One: 7.5 minutes – GO!
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Round One
► Let’s gather the results……..
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Your observations on the process …..
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An Industrious Evolution
Eli Whitney
Interchangeable Parts
1765
Frederick Taylor
Frank Bunker Gilbreth
Scientific Management Motion Studies &“One Best Way”
1868
1856
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An Industrious Evolution
Henry Ford
Mass Production
1908
W. Edwards Deming
Statistical Process Control
1950
Taiichi Ohno
Toyota Production System
1950-60’s
“If you can’t describe what you are doing as a process, then you
don’t know what you are doing.” Edwards Deming
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An Industrious Evolution
Womack & Jones
Lean Thinking
1990
Bill Smith
Amalgamation Of Approaches
Six Sigma
1986
1990-2000’s
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What is a process?
“A process adds value by producing goods or providing a service that a
customer will pay for. A process consumes resources & waste occurs
when more resources are consumed than necessary”
Suppliers
Inputs
Process
Outputs
Customers
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Lean Vs Six Sigma
Lean
• Process simplification
• Eliminating Waste
• Creating Value
Six Sigma
• Process perfection
• Eliminating Variation
• Creating Consistency
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Lean – 5 Principles Of Lean
Improving
process
performance is
central to all
employees’ roles
1
Specify
Value
Use voice of customer to
determine customers’ value
requirements
2
Identify
Value
Stream
5
Attain
Perfection
Value is created
when customer
requires it, not
before
4
Create
Pull
3
Create
Flow
Understand
how value
flows
through your
processes
Allow value
to flow
unimpeded
through your
processes
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Elimination of waste
► Value added activities (VA)
– Tasks performed during the production of the
product or service that increase value to the
customer
► Non value added activities (NVA)
– Is everything else (waiting, moving etc.)
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Process Analysis – types of waste
Transportation
Defects
Unnecessary movement of
materials, parts or information between
processes.
Non right
first time.
Repetition
or correction
of a process.
Inventory
1
7
Over Processing
Processing beyond
the standard
required by the
customer.
6
Overproduction
Raw material, work
in progress
or finished goods
which is not having
value added to it.
2
The 7
Wastes
5
To produce sooner , faster
or in greater quantities
than customer demand.
Motion
3
Unnecessary movement
of people within
a process.
4
Waiting
People or parts
that wait for
a work cycle to
be completed.
Remember: TIMWOOD!
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Process Analysis – types of waste
Two Additional Wastes
There are two other wastes that are frequently talked about:
1. Intellect: the under-utilisation of our people and their
knowledge and experience
2. Capital: the investment in new systems rather than fixing
the original
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What waste exists in your business
processes?
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Let’s play more – Round Two
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Work Place Rules & Regulations
1. Follow your job specifications exactly. Do not change or
get out of your seats.
2. Completed work can only be moved between work
stations by the Transportation Manager.
3. Work can only be shipped when a complete batch has
been made. A batch for this round consists of 3 Units.
Each team needs to produce a minimum of 12
completed products.
4. Broken units must not be repaired and should be put
into a waste pile.
5. If you run out of Lego stock or have nothing to do,
either tell the Production Manager or don’t!
6. On completion of the round and when instructed,
dismantle parts and return to starting positions.
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Round Two
► Let’s gather the results……..
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Your observations on the process …..
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Six Sigma & Variation
Why Care about Variation?
Imagine you’re the manager of
the England rugby team. You’re
going to buy a new player and
have two choices. Each player
has a 93% track record of
scoring a conversion.
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The rugby example
Imagine you’re the manager of
the England rugby team. You’re
going to buy a new player and
have two choices. Each player
has a 93% track record of
scoring a conversion.
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The rugby example
93% within customer target
Player 1
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The rugby example
93% within customer target
Player 2
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The rugby example
Player 1 = 93%
Player 2 = 93%
Which player would you choose?
Why?
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The rugby example
What happens if customer
demand (targets) shift over time?
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The rugby example
OR
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Which
The
rugbyPlayer
exampleWould
? % within customer target
Player 1
You Choose?
93% within customer target
Player 2
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Two Types Of Variation
Common Versus Special Causes
Type of Variation
Common Cause
Special Cause
Characteristics
Characteristics
Always Present
Expected
Predictable
Normal
Not Always Present
Unexpected
Unpredictable
Not Normal
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The Process Sigma Scale Explained
Which Process is performing best?
Process
Y Performance
Call Servicing
32 +/- 5 Second average speed of answer
Billing
98 +/-1% Accuracy
Accounts Receivable
33 +/- 2 Days average aging
Customer Service
82% Rated 4 or 5 on responsiveness
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The Process Sigma Scale
Process Sigma
Defects Per Million
Opportunities
(DPMO)
6
3.4
5
230
4
6,210
3
66,800
2
308,000
Process
capability
Process defects with
respect to performance
standards
Increases In Sigma Require
Exponential Defect Reduction
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The road to process excellence
Use technology to
get improvements
to stick through
automation
1
Simplify
4
Automate
Reduce/eliminate
the 7 wastes &
variation. Find one
best way
Complexity drives
waste and variation
2
Standardise
3
Optimise
Non-standard work
is also waste &
reduces the impact
of improvement
efforts
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Making improvements that stick
► Have we simplified and standardised before we
optimise the solution?
► Has the solution been verified and validated with a
broad range of people?
► Has the improvement been fully and clearly
documented so that users know exactly what to do?
► What Poke Yoke (error proofing) techniques have
been used to maximise the improvements effects?
► Does everyone know what to do if things go wrong?
► Can everyone recognise the difference between
common cause and special cause variation?
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Work Place Rules & Regulations
Break The Rules!
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How can you improve the process?
► In your teams, you have 5 minutes to decide
on how you can improve your process before
we launch Round 3.
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Let’s Improve – Final Round
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Round Three
► Let’s gather the results……..
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Your observations on the process …..
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In Summary
► Process and process theory are here to stay, it’s
been around for a long time!
► Identifying and eliminating waste is key to
ensuring effective and efficient use of resources
► Understanding the difference between special
cause and common cause variation will help
ensure effective solutions are found to problems
► Looking for process solutions before technology
solutions will significantly drive up effectiveness
and efficiency whilst keeping technology costs
down
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And next….
► Any questions?
► The future:
► Launching a Community of Practice for Process Excellence. If
you are interested in this please contact:
– Tamsin Freemantle (Process Excellence Leader) -
[email protected]
– Chris Dalby (Head of Process and Change) –
[email protected]
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