Page Under Construction Based on its sixth annual study of Internet job postings, The Avery Point Group found that demand for Lean talent has surpassed Six Sigma by a substantial margin as the more desired skill set, accelerating an already growing shift in talent demand toward Lean. This year’s study showed that Lean talent demand exceeded Six Sigma by almost 35 percent, significantly widening its lead over last year’s results that only showed an 11 percent edge for Lean over Six Sigma. This is a dramatic shift from The Avery Point Group’s 2005 inaugural Lean and Six Sigma talent demand study that showed Six Sigma talent demand exceeding Lean by more than 50 percent. Lean Six Sigma (LSS) Services - LSS education workshops
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The Incredibile Story of Lean at the Thedacare Health System Six Sigma Videos |
Lean Lean is a well-defined set of tools that increase customer value by eliminating waste (muda) and creating flow throughout the value stream. The following bullets describe lean improvements: Inexpensive to implement Focus on improving the process, not the people Address the batch and queue mentality of silos by following process flow Promote simple, error proof systems
Therefore, a Lean process is better (no defects, it is what the customer wants), cheaper (non-value added work is removed, there is no re-work or scrap), and faster (eliminates batch and queue, introduces flow, gets it right the first time). The Lean Steps | Specify Value – from the customer’s perspective Map the Process – Process Map or Value Stream Map Identify Value Added and Non-Value Added Steps Examine Flow – continuous, minimally interrupted flow; single piece vs. batching Create Pull – do not produce until the next step downstream is ready for you Pursue Perfection – sustain improvement; change culture |
Six Sigma Six Sigma is a statistical model that measures a process in terms of defects. Six Sigma enables an organization to achieve quality by using a set of strategies, tools, and methods designed to improve processes so that less than 3.4 defects (errors) exist per million opportunities and processes are as near to perfect as possible. Sigma, or the Greek letter d, is the symbol for standard deviation in statistics. Standard deviation levels help us understand how much the process deviates from perfection. 
Six Sigma is also a philosophy of management that emphasizes: The importance of understanding factors critical to quality and customer expectations The measurement and analysis of data The implementation of solutions designed to improve processes to affect the most statistically significant sources of variation Sustaining these solutions
In short, Six Sigma is several things: A statistical basis of measurement that strives for reduction of defects to 3.4 defects per million opportunities (DPMO) A philosophy or method of management A management goal: to perform as perfect as practically possible A symbol of quality
Motorola started using Six Sigma in the 1980s to improve its manufacturing processes. General Electric and others expanded its applicability to service processes with great success. Other users and innovators in the late 90s include DuPont, Dow Chemical, 3M, Ford, Amex, Bank of America, JP Morgan Chase, and United Health Care.
From Six Sigma For Managers, G. Brue, (2002) Lean Six Sigma Both Lean and Six Sigma have their weaknesses and their strengths. For example, Six Sigma will eliminate defects but will not address speed or optimize flow. Lean does not include the advanced statistical tools required to identify the sources of variation necessary to craft an intervention that is as simple and as focused as possible. Recognizing the complementary nature of the two methodologies, many companies have used Lean and Six Sigma concurrently, utilizing different pieces of the tool kit to address specific improvement problems along a value stream. This practice of combining different tool sets and playing to strengths is sometimes called the “blended approach.” _______________________________________________________________________________________________________Additional Lean Thinking Lean is based on the collective learning of many “gurus" and many thousands of companies over the last 50+ years. Toyota is credited with originating it, and it is known as the Toyota Production System. It has successfully made the transition to services. The essence is eliminate waste by creating flow. All else is the detail on “how”. Key principles: 1. Specify value – what it is and what it is not - it is something: - the customer is willing to pay for - that changes the process object - that is done right the first time 2. Map and identify the value stream for each product/service 3. Institute one-piece flow – make the work flow so that there are no interruptions, wasted time, or materials: - builds in quality - creates flexibility - increases productivity - frees flow and space - improves safety - improves morale - reduces inventory 4. Level out the workload to the rate of customer demand or pull. 5. Stop and fix problems immediately to get quality right the first time. 6. Standardize to support improvement. 7. Use visual controls so that no problems remain hidden. 8. Use only reliable technology that supports people and process. 9. Compete against perfection. Waste Waste takes up to 95-98% of all lead time. Defects Any part or service NOT made or rendered to the customer’s specifications the first time Creates rework, repair or scrap Usual causes:
Overproduction – faster, sooner or more than needed Waiting - time lost when people, material or machines are waiting - ususal causes: - Unbalanced workload
Equipment breakdowns Long set-up times Poor material handling practices Waiting for decisions, authorizations or information Unanswered emails or phone calls
Non-utilized talent Transportation - of parts or material - usual causes: Poor layout Large batch sizes Large storage areas
Inventory - any material in excess of the one piece required for the next step in production Motion - movement of people or machines that does not add value Extra processing - doing more than minimum required to transform material into an acceptable product - usual causes: Accommodate perceived customer needs Redundant approvals/inspections Unnecessary reports produced Examples: duplication, rework, engineering changes
Some Six Sigma Components - DMAIC | Define | Measure | | Analyze Histograms Sub Process Mapping Quincunx Demonstration Histograms Six Sigma Math Primer Scales and Probability Central Limit Theorem Standard Deviation Applying Normal Binomial, Hypergeometric and F Distributions Bivariate, Exponential and Lognormal Distribution Poisson, Student's t - and paired t - Distribution Economic Considerations Six Sigma Teams Introduction to Lean Cellular Systems Kaizen - The 5S's Value Stream Mapping and Manufacturing Poka-Yoke Quick Changeovers for Manufacturing Quick Changeovers for the Service Industry Theory of Constraints Kaizen Events Barriers to Lean Implementation Root Cause Analysis TRIZ Hypothesis Testing Concept F Distribution of Variances Analysis of Variance (ANOVA) Chi-Square Linear Regression
| Improve Determining Solutions 7M Tools 7M - Activity Network Diagram 7M - Prioritization Matrix Point and Interval Estimation Reliability Design for Six Sigma Design of Experiments Planning and Organizing Designed Experiments Full Factorial Designs Analyzing Full Factorial Designs Fraction Factorial Designs Taguchi Design Taguchi Robustness Response Surface Multi-vari Study, Scatter Plots and Check Sheets Failure Modes and Effect Analysis (FMEA) QxA=E Maintaining Solutions
| Control Control Charts XmR Charts Moving Average and S Chart Pre-control Chart Attribute Charts Evaluating the Measurement Systems(EMP Studies) Process Capability Studies (Cp,Cpk) Capability Studies (Ppk, Pp) Process Characterization
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Some Six Sigma History Regarding It's Roots at Motorola “Myth #2: Motorola won the 1988 Baldrige award because of its Six Sigma program. Motorola won the Baldrige Award not because of its formal Six Sigma program that kicked off in 1987 but because it had made truly awesome improvements in both quality and cycle time over the preceding 8 years. Those achievements were a result of all the TQM and BPI efforts going on, and they weren’t viewed as a single comprehensive program called “Six Sigma” or anything else…except in hindsight. The Six Sigma goal was announced in 1987, and the methodology was packaged and rolled out in 1987-88. As a formal program, Six Sigma was barely in place when the Baldrige Award was obtained. Six Sigma was a repackaging of tools and techniques already in place, and the program was rolled out because Motorola had essentially stalled in its improvement efforts. What does any of this history matter now? Here are a few lessons to consider: Organizational transformations don’t happen quickly. Motorola’s journey from duck to swan took the better part of 10 years, propelled by a series of business crises and a lot of fumbling around. Most of the ideas came from outside. Motorola deserves the credit for recognizing the importance of concepts in quality, process, and performance, and for opening its doors to new ideas, but virtually all the tools and how-to knowledge came from a large cadre of outsiders. Juran, Deming, Dorian Shainin, Richard Schonberger, and Rummler were the true sources of Motorola’s approach. And the drumbeat of customer demand, from Ford and others, was also a source for both ideas and inspiration. There was no grand plan. Only in hindsight can a path be dimly seen."
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