Basic Lean Six Sigma Concepts Tutorial

1.1 Basic Lean Six Sigma Concepts

Hello and welcome to the first lesson of the Lean Six Sigma Application in Information Technology course offered by Simplilearn. In this lesson we will cover the basics of lean six sigma , and provide the history of lean six sigma. Let us explore the objectives of this lesson in the next screen.

1.2 Objectives

After completing this lesson, you will be able to: BP1:A State the goals and core principles of Lean Six Sigma BP2: Identify the differences between process improvement (DMAIC) and process design (DMADV) BP3:Define the 5 phases of a Lean Six Sigma improvement process In the next screen, we will define Lean Six Sigma

1.3 Basic Lean Six Sigma Concepts Topic 1 What is Lean Six Sigma

Let us start with our first topic, What is Lean Six Sigma?

1.4 Lean Six Sigma Defined

BP1: Lean Six Sigma incorporates concepts from both Six Sigma and Lean Manufacturing that creates a powerful model for problem solving and continuous improvement. BP2: Lean Six Sigma has been successful in bringing improvement across a variety of industries and different types of work. Manufacturing, transactional, and even creative processes can benefit from applying the concepts of lean six sigma . BP3: Lean Six Sigma starts with gathering the voices of the customer (or VOC) and then using this to define and measure quality. Understanding the voice of the customer enables an organization to identify the value adding features and services. BP4: Once customer requirements are understood Lean Six Sigma utilizes various tools including Value Stream Mapping, Value Analysis, Statistical Process Control, and Process Capability to eliminate waste and reduce variation. This ensures processes to deliver a consistent quality outcome effectively and deliver the customer values with the right amount of effort efficiently. BP5: Finally, Lean Six Sigma is not a single project or time bound activity, it is a foundation for an organization to improve continuously. In the next screen, we will discuss how Six Sigma and Lean compliment each other and deliver powerful results when combined.

1.5 Integration of Lean and Six Sigma

The concepts of Lean and Six Sigma compliment each other, and deliver stronger results when combined than when used separately. The table on the screen provide more detail on how the different methodologies support and integrate with each other. BP1: The goal of Six Sigma is to eliminate variation and reduce defects to a six sigma level of quality, with a set standard of 3.4 defects per million opportunities. BP2: Lean focuses on simplicity and flow in the process. Variation and defects are often driven by process complexity, so eliminating unnecessary process steps and establishing a good process flow reduce process complexity, variation, and defects. BP3: As referenced in the earlier screen, six sigma utilizes customer expectations to define quality. BP4: Lean, also driven by voice of the customer, in turn uses it to identify customer value added features and activities. This understanding is critical to eliminate waste or non value added activities to support simplicity. BP5: Finally, both Six Sigma and lean require an understanding of the current state and uses information and analysis to identify and solve the root cause. Six Sigma relies on data analysis to identify critical defects and statistically test solutions to ensure root cause is addressed. BP6: Lean also relies on process data to understand process performance, and incorporates the practice of in person process observation to ensure the correct cause of problems are identified and eliminated. We will cover the 4 disciplines of Lean Six Sigma in the next screen.

1.6 Four Disciplines of Lean Six Sigma

Lean Six Sigma focuses on delivering the following: BP 1: The right things- delivering what the customer wants, with the features desired, with no defects. BP2: At the right time- delivering what is needed, when it is needed. BP3: At the right cost- minimizing cost to deliver a product or service through elimination of defects and rework, and delivering only what the customer values. BP4: Finally, with the right amount of effort, it manages to eliminate waste and non value added activities. In the next screen, we will discuss the 8 forms of process waste.

1.7 Eight Forms of Waste

As discussed in the previous screen, the elimination of waste or non value added activities is a key element of lean six sigma. There are 8 forms of waste, which can easily be remembered as the acronym DOWNTIME. The 8 forms of waste are: Defects: Anything that does not meet the customer requirement Over Production: Producing more than necessary Waiting: Time spent in the process when nothing is occurring Neglected Talent: Not utilizing employees to their fullest potential Transportation: Moving items in the process Inventory: Having more than what is needed to complete a process or build a product Motion: People moving in the process Excess Processing: Adding more value than what the customer is willing to pay for. In the next screen, we will review the history of Lean Six Sigma.

1.8 Basic Lean Six Sigma Concepts Topic 2 History of Lean Six Sigma

Our second topic covers the history of lean six sigma

1.9 History of Lean Six Sigma

Lean Six Sigma has a long history. Both Lean and Six Sigma were built upon concepts and tools that were already in use in various industries. BP1: 1940’s: Toyota implements the Toyota Production System (TPS) in response to manufacturing challenges in post World War II Japan BP2:1986: Motorola launches improvement methodology and names it Six Sigma BP3:2000’s: Organizations blend the discipline of Six Sigma with the continuous improvement mindset of Lean Manufacturing In the next few screens, we will cover the history of both lean and six sigma in detail.

1.10 History of Lean

Let us now discuss the history of Lean. BP1: Taichi Ohno, a Toyota executive who started with the company in the 1930’s is considered the primary architect of the Toyota Production System. BP2: In his quest to change the manufacturing DNA of Toyota, he visited the United States to understand the processes that they follow in various industries. Ohno was inspired by what he observed during his several visits to the United States. Principally, he borrowed heavily from what he learned from three very different American institutions. During his travels, Ohno spent time at the Ford River Rouge Plant. From these visits came the core lean idea of process flow. Ohno also observed the pit crews at the Indianapolis 500, which informed his concept of quick changeovers. Finally, Ohno saw the concept of a pull system from the time spent in American Supermarkets. All of these observations were instrumental in what later would become the Toyota Production System. BP3: Western companies were largely unaware of the Toyota Production System before 1990. This changed with the publication of The Machine that Changed the World by Womak, Jones, and Roos BP4: After the publication of “The Machine that changed the world,” there were many well publicized early adopters of what came to be known as Lean Manufacturing., The success of lean was initially seen in the manufacturing arena, however over time corporations began to see the benefits of applying lean principles in transactional environments as well. In the next screen, we will cover the history of six sigma.

1.11 History of Six Sigma

BP1: Six Sigma was built upon a variety of long standing quality management tools, including the works of Deming and Shewhart. In 1986 a group of Motorola engineers formed the disparate tools and concepts into the DMAIC framework and named it Six Sigma. The name Six Sigma denoted the level of quality Motorola desired to achieve. It was so successful, the CEO of the company declared a year goal to get all Motorola processes to a six sigma level of quality. This led to the consideration of Six Sigma as a breakthrough improvement methodology. BP2: In 1995, Six Sigma was brought to General Electric by Jack Welch who made it a core component of the company’s strategy BP3: By the late 1990’s Six Sigma was being deployed by all types of organizations. This was driven by the high visibility and publicized results seen at GE under Jack Welch. Some efforts were very successful, however many deployments failed to deliver expected results and were quickly disbanded. In the next screen, we will discuss how Lean and Six Sigma came together.

1.12 Rise of Lean Six Sigma

BP1: Throughout the 80’s and much of the 90’s Lean and Six Sigma were separate disciplines, with much debate as to which one was superior. BP2:In the late 90’s companies began to see the benefits of melding them together, leading to the development of Lean Six Sigma. We will now move on to the final topic in this lesson in the next screen.

1.13 Basic Lean Six Sigma Concepts Topic 3 Process Improvement (DMAIC) and Process Design (DMADV)

Our final topic is Process Improvement and Process Design, which we will discuss in the next screen.

1.14 Process Improvement and Process Design

Traditionally, lean six sigma has been thought of as a way to improve processes. Many of the same concepts that apply to improving existing processes can also be leveraged to design processes, products, or services to deliver 6 sigma quality at launch. There are many acronyms used to define the phases of a lean six sigma project. In this course we will use DMAIC for Process Improvement efforts and DMADV for Process Design, also known as Design for Six Sigma. Box 1: Process improvement projects follow a 5 steps DMAIC process. DMAIC stand for: Define Measure Analyze Improve Control Box 2:Design projects also follow a 5 steps process called DMADV which stands for: Define Measure Analyze Design Verify While these methodologies are often taught separately, there are tools used in design projects that can be leveraged when working to improve current processes. We will cover some of these tools in a later module In the next screen, we will review the major activities in each phase of a DMAIC project.

1.15 DMAIC

Each phase of a Lean Six Sigma improvement project has key deliverables. BP1: The define phase is focused on defining the project, including problem statement and project goal. The SIPOC document, defines the process at a high level and documents the suppliers, inputs, process, output and customer of high level step in the process. Finally, the voice of the customer is collected in the define phase. BP2: In the measure phase, a detailed process map is created, and data is collected to be used in the analyze phase. Once data is collected, analysis of the stability and accuracy of the data is completed along with the process capability to deliver to customer specification. BP3: The analyze phase focuses on running various statistical tests and graphs to determine where variation is occurring and uncover root cause of the defects. BP4: The improve phase is where the critical inputs are finalized, and possible solutions identified to eliminate the defects. Once a pilot is completed to verify the effectiveness of the proposed solutions, the full implementation occurs. BP5: In the control phase a final test for improvement happens, a control plan is put in place, and the project is transitioned to the project sponsor. The next screen will define the key deliverables of a process design project.

1.16 DMADV

Each phase of a Lean Six Sigma design project has key deliverables. BP1: The define phase focuses on defining the opportunity, including business risk. An analysis of customer and/or market needs is also completed in this phase BP2: In the measure phase, the voice of the current or potential customers is gathered and used to define the initial critical to quality characteristics. Detailed risk analysis is also a key deliverable in the measure phase BP3: The analyze phase focuses on developing and evaluating various design concepts. Once a concept is chosen, a detailed critical to quality characteristic assessment is completed BP4: In the design phase the chosen design is optimized and tested to verify all design elements. After testing, the final design is finalized BP5: Finally, the verify phase includes control plan development, and the launch of the product or process. Outcomes are validated and the project is closed.

1.17 Quiz

Following is the quiz section to check your understanding of the lesson.

1.18 Summary

Here is a quick recap of what we have learned in this lesson: BP1:Lean Six Sigma is a proven methodology that incorporates the tools and concepts of both Six Sigma and Lean BP2:Lean Six Sigma focuses on 4 core disciplines: Right Thing, Right Time, Right Cost, and Right Effort BP3:Lean Six Sigma can be used to improve existing processes and design new services and products BP4:The roadmap for improving processes is using DMAIC and DMADV for process design. DMAIC methodology is used for traditional process improvement projects, while DMADV is used for process design projects.

1.19 Conclusion

This concludes lesson one, Basic Lean Six Sigma Concepts In the next lesson, we will discuss the application of Lean Six Sigma in IT

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  • PMP, PMI, PMBOK, CAPM, PgMP, PfMP, ACP, PBA, RMP, SP, and OPM3 are registered marks of the Project Management Institute, Inc.

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