1 7001A 1-02D Identify Lean Six Sigma Opportunities UoC7001A - 91558NSW CLR

Identify Lean Six Sigma Opportunity
Lean Six Sigma

Graduate Program
Accreditation Program
Introduction to Lean Six Sigma
Investigating Dysfunction
Identifying Project Opportunities
LSS e-Learning
Curriculum under License from
Lean Six Sigma Australasia
91558NSW Graduate Certificate in Lean Six Sigma

Unit 7001A Apply Lean Six Sigma Fundamental Skills and Knowledge
Graduate Certificate
in Lean Six Sigma
Accreditation Program
Units of Competency
Project Portfolio Assessment
LSS e-Learning


Unit 7001A Apply Lean Six Sigma Fundamentals
Lean Six Sigma Graduate Program

within the Qualifications Framework
91557NSW Graduate Diploma of Lean Six Sigma
One Recognised Level of

Accreditation in the Australian
Qualifications Framework
8
7
Bachelor Honours Degree

Graduate Diploma
Higher than a Bachelor Degree
Units of Competency for

You must obtain

skills and knowledge
to evidence
competency in these
units
Unit Code
Demonstrate a
holistic
understanding of the
disciplined approach
to problem solving
with a project
portfolio
(a minimum of two
projects is
required)
Required evidence
LSSGB7001A
Apply Lean Six Sigma fundamental

skills and knowledge
Use the DMAIC framework and

demonstrate knowledge of basic concepts
LSSGB7002A
Structure and validate a viable

project
Analyse Customer Segmentation
and Identify Requirements
A comprehensive project charter document
LSSGB7003A
LSSGB7004A
Unit Title
91558NSW Vocational Graduate Certificate in Lean Six Sigma
LSSGB7005A
LSSGB7006A
Segmentation report. Customer Critical

Requirements analysis
Collect and Stratify data for analysis Data stratification matrix. Data Collection
Plan
Perform basic statistics & graphical Show descriptive statistics, and a graphical
analysis
distribution for project data
Calculate simple specification
Show process capability in relation to count
tolerance to process performance
of defects
LSSGB7007A
Determine probable cause using

qualitative techniques
Show documentary use of team generated

C&E Matrix, FMEA or equivalent
LSSGB7008A
Achieve process stability using

work control systems
LSSGB7009A
Use structured lateral thinking

techniques and develop criteria
based solution evaluation
Pilot and evaluate a proposed
solution
Plan and control an improved
process commissioning
Demonstrate use of analytical approach to

work control either from project execution
or work example
Show documentary use of team generated
solution evaluation matrices and
conclusions
Pre-pilot plan, documentation of the pilot
and findings/conclusions
Documentation of the process control plan,
updated SOPs, Process mapping, handover
meeting evidence. Improved process
quantified by gap analysis
LSSGB7010A
LSSGB7011A

Assessment
A range of assessment strategies is employed for this

graduate program and the choice of strategy is dependent
on the nature of the unit of competency. Strategies
include:
demonstrations,
observation,
Advice
projects,
presentations,
1.
knowledge tests,
reports and interviews
2.
3.
Follow the disciplined approach,

listen to your coach and sponsor,
keep good records from the start
and you will naturally be prepared
and become competent from
working your projects
Project Portfolios
As a natural output of executing a Lean Six Sigma project which necessitates

the five phases of official reporting back to the organization of findings and
progress: The Define, Measure, Analyse, Improve and Control phase reviews
make up the major component of the evidence for a project portfolio.
It is important to keep detailed project notes and presentations as you execute

all your projects. If you follow the disciplines of the approach there will be
little need to put together a special evidentiary package for the assessment.
Value Stream
Brainstorming
Map
Affinity Diagrams
Goal
Fault Tree Analysis

Ishikawa Diagram
FMEA
Failure
Mode
Gas will not
shut off
Define
phase
documents
Measure
Check Sheets
phase
Analyse
phase
Pareto Chart
documents
documents
Force-Field
Analysis
Nominal Group
Technique
Improve
phase
documents
C&E Matrix
Specific Cause
Spring broke
preventing valve
from closing
Effect of Failure
Explosion resulting in
property damage
and/ or serious injury
Likeliness
of Failure
3
Detectability Severity of
Risk
of Failure
Failure
Priority
5
10
150
Likeliness of Failure: 1-10 with 10 representing most likely

Detectability of Failure: 1-10 with 10 representing most difficult
Severity of Failure: 1-10 with 10 representing most severe
Risk Priority = (Likeliness of Failure) X (Detectability of Failure) X
Control
phase
documents
(Severity of Failure)
Casing Defect Tracking

Defect Mon. Tue. Wed. Thurs. Fri. Week Total % of Total
Scratch ll
lll
ll
lll
llll
14
67%
Dent l
l
l
3
14%
1 Item Number
Chip l
l
l
3
14%
Card Rating Value 6
Bend
l
1
5%
Total Defects
21
Idea Scores
Idea 1
8,8,6,7,8,2
Idea 2
6,5,4,7,3
Idea N
3,2,2,1
Totals
6/39
5/25
4/8

Introduction to Lean
Six Sigma
LSS e-Learning

Learning Objectives
Realize the benefits of the synergy built into Lean Six Sigma
Understand a brief History of Six Sigma and Lean
Realize the importance of each of the five Phases of the

D.M.A.I.C. process and their sub-phases
Understand the Lean Six Sigma problem solving approach
Introduce the Basic and Advanced toolkits

Six Sigma
The Lean Six Sigma Concept
A Brief History
Structured Discipline
LSS e-Learning

The Modern Market Drivers of

Organizational Improvement
Quality is driven by customer expectation, it is a must in the

modern marketplace
Quality is also demanded to better the competition
Customer loyalty and retention is critical
Lowering costs generates greater opportunity to realize

economic profit
The need for lower invested capital still means getting more
output with less without effecting quality
Customers are demanding shorter and more predictable lead

times
Lean Six Sigma optimizes capacity, reduces process lead
time performance and eliminates variability in all processes

Lean Six Sigma is the Integration of Two

Powerful Business Improvement Approaches...
Lean Six Sigma combines; Lean Enterprise and Six Sigma into a common
disciplined framework
Establishes a common methodology and language across the whole

organization
Common terminology enables more rapid replication of successes as

commonly understood best practices across the organization
Establishes a single framework for solving process problems in all areas of

organization e.g. Sales, Marketing, Customer Services, IT and Manufacturing
can interact seamlessly with other services solving end to end improvement
opportunities,
Stream-lines project prioritization and selection into one funnel of

opportunities
Equips project leaders a greater opportunity to select the right approach

from a vast range of tried and tested tools and techniques at the right
time, regardless if the need is for a rapid lean event or a rigorous six-sigma
investigation
Best of Both Worlds

LEAN Speed
enables SIX SIGMA Quality
Reduces complexity
meaning less variation
LEAN SIX SIGMA

productivity
SIX SIGMA Quality
enables LEAN Speed
Fewer defects
meaning less time and rework

Benefits of Integrating
Lean and Six Sigma Initiatives
Lean and Six Sigma can co-exist independently, but the

benefits of integration are tremendous. For instance, Lean
Six Sigma:
Provides a single channel for employing limited resources to
continuous improvement efforts
Provides one integrated improvement strategy for the whole
organization
Is a highly productive and profitable synergy of two proven
disciplines
As a single integrated approach avoids the pitfalls of wasting
time re-inventing tools that already exist in either the Lean
or Six Sigma toolsets.
Disadvantages of NOT Integrating

Lean and Six Sigma Initiatives
The pitfalls of not combining Lean and Six Sigma include
Limiting the potential to resolve problems by limiting

available toolsets
Limiting effective probing investigation into root causes of
dysfunction
Limit essential business skills, knowledge and practices that
would otherwise greatly advantage development of future
leaders
Adding unnecessary complexity to process improvement
initiatives
Limits assigned resources, teams and organizations from
thinking more laterally about potential ways of developing
improvement solutions

Six Sigma
A Brief History
LSS e-Learning

Learning Objectives
Gain appreciation for the evolution of Lean Six Sigma
Understand a brief history of Six Sigma
Understand a brief history of Lean
Be more familiar with some terms, tools and methods of

Lean Six Sigma
Realize the synergies that naturally led to the development

of Lean Six Sigma

Industrial Evolution
Lean Six Sigma is a culmination of generations of evolutionary

DNA from the industrial revolution in a quest for greater
efficiency and effectiveness in processing
At the roots of continuous improvement we can find the

beginnings of
Taylors Time studies,
Eli Whitney Product Standards and
Craft Production
Henry Fords vision for low cost automobile production was

rivalled by GMs and later Chryslers variety of choices models.
Industrial Evolution (cont)
Toyota created Lean to achieve and also surpass both Fords,

GMs and Chryslers production models.
Which in the mix was heavily influenced by:

Shewharts Statistical methods,
Taguchis Customer focus,
Demings Systems Thinking,
Baldridge and Shingos standards
Then we have the development of postmodern systems in

TQM; Total Quality Management,
TPM; Total Productive Maintenance,
Zero Defects

Industrial Evolution (cont)
Mid 1980s saw the commencement of John Smiths

acclaimed Motorola evolution Six Sigma to counter
superior cost and quality of Japanese electronics
manufacturer competitors
In the late 1990s:
Jack Welch and Bossidys work on organizational

infrastructure and
The George Groups brilliant fusion of these converging

evolutionary strands finally merged into the universally
adopted culmination of worlds best practice that
resides within the Lean Six Sigma framework.
A Brief History of
Six Sigma
Commenced as a rigorous transformation effort to deliver high quality goods to

meet customer satisfaction with lower invested capital
Motorola is acclaimed as the first advocate in the 80s; which gathered

momentum in late 80s and early 90s
Six Sigma involves the use of statistical and graphical tools and
structured problem-solving disciplines to solve high payback projects
Historically early project implementers were called Top Guns, Change

Agents, and Trailblazers, and now a more common term of Black Belts
Black Belts were expected to deliver annual financial benefits through 3-6
projects per year
Companies who popularized Six Sigma include GE, Allied Signal, Sony,
ITT, Caterpillar, and Bombardier
Today most medium to large organizations internationally have a type of

continuous improvement framework
10

Six Sigma Terminology
Sigma is a Greek symbol () used in statistics to denote Standard

Deviation
A key measure of variability in a dataset
Sigma commercially also alludes to the need to control both the

variability in performance as well as the average activity within
processes
Six Sigma Quality

Sigma Quality Level is a traditional measure used to indicate and
highlight how often defects are likely to occur.
A reminder that 99% Yield is not good enough:
Unsafe drinking water almost 15 minutes each day.
2 short or long landings at most major airports each day.
No electricity for almost 7 hours per month.
Also referred to as 3.4DPMO (Defects per Million Opportunities).
Why Six Sigma Is the Goal

Rolled Throughput Yield (RTY) is the probability that a product will pass
through the entire process without rework and without any defects.
For complex products

and systems
requiring 1,000s of
process steps, 6
is necessary to
produce or perform
defect-free more
than 90% of the time
Rolled Throughput Yield
Impact of Complexity on Rolled Throughput Yield

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
5
4
0
1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000
Number of Parts/Process Steps
RTY= Y1 x Y2 . . . Yn
11
(n = number of process steps)

Historic Results that Popularized Six Sigma:

General Electric in the 1990s
General Electric GE annual reports state that Six Sigma delivered:

1997| $300 million to its operating income.
1998| $750 million to the bottom line.
Additional inspiring GE annual report examples:

10-fold increase in life of medical CT scanner x-ray tubes.
Improved yields of super-abrasives worth a full decade of
increased capacity despite growing demands.
62% reduction in turn-around time of railcar leasing repairs.
Plastics business added 300 million pounds of new capacity
equivalent to capitalizing one free plant.
Competitors of GE and other Trailblazing
companies saw huge benefits of a Six
Sigma culture and started to adopt
A Brief History of
Lean Enterprise
Commenced with innovative production techniques started as early as Henry

Ford and the Ford Motor Company
The main concept was mass developed by Toyota
Their was early adoption by other Japanese manufacturers
Forced into discovery much later by Western manufacturers needing to

compete against new generation of low cost high quality Japanese goods
Popular terms that refer to Lean techniques are:

Toyota Production System (TPS)
Just-In-Time
Lean or Lean Enterprise
Originally focused on reducing waste in manufacturing
Now a global phenomenon delivering transformational gains across markets in

most segments including transactional, service and most traditional business
environments
12

Lean Focuses on Eliminating

the Seven Deadly Wastes (TIMWOOD)
The seven deadly wastes inherent in every process

excess travel distance due to poor
layout or part design
Transportation
MUDA
Inventory
TIMWOOD
Unnecessary Motion
Waiting
Over-production
Build more parts than are required,

exceed customers tolerance/requirements
Over-Processing
Doing more than customer needs. Long

time to changeover between products
Defects & Spoilage
Benefits
of elimination
Increased Quality
Increased Flexibility
Increased Innovation
Increased Responsiveness
Increased Employee Enthusiasm
Less Indirect Labor Requirements
Less Direct Labor Requirements
Less Space Requirements
Storage/Warehousing; excess inventory

and/or movement of materials
Trunk movements. Poor
ergonomics of workstation.
Idle Time/Search Time; looking for and
waiting for parts or instructions to be
delivered
Rework and scrap doing the

same job more than once
Historic Lean Results in

Western Manufacturing during the 1990s
Porsche
1991
1997
Concept to Launch
7 Yr
3 Yr
Welding to Finished Car
6 Wk
3 Days
Inventory (Days on Hand)
17 Days
3 Days
Defects Per Million Parts

Supplied Parts
Off the Line
10,000
100
100
25
13

Historic Lean Results

as the West catches-Up Dell versus HP
HP
Order To Ship Cycle Time
Strategy
5Min
11 Days
Make to Order Build to Inventory
Working Capital
($9M)
$12B
Op Margin
8%
(2%)
Inventory Turns
121
10
ROI
34%
3%
Historic Lean Results

Boeing
Boeing is the first to build large commercial jets on a

moving assembly line (Boeing 737)
Before Lean:
By adopting lean and reorganising the factory workflow,

they achieved big savings, four keys advances, were:
200+ Days
Standardised parts and procedures
Use of uniform parts and consistent assembly processes

speeds output
Visual Management Signals
Point of Use Carts
Lead Time =
Traffic light like indicators quickly gauge production status
After Lean:
Trolleys deliver information, tools and equipment to

workers where and when they need them
Feeder Supermarket Lines
Pre-assembling components on these lines speeds

installation
14
Lead Time =
20 Days

Lean Tools and Terminology
Value Stream Mapping
Setup Time Reduction
Time Trap Analysis
Total Productive Maintenance
Generic Pull Systems
Process Balancing
Replenishment Pull
Process Flow Improvement
Analytical Batch Sizing
Mistake Proofing
Stocking Strategy
Visual Control Tools
5S
Sales and Operations Planning
Lean Goals: Highest Quality, Lowest Cost, Shortest Lead Time
The historic innovations of the

Lean Six Sigma Concept
Combine the strategy and solution sets inherent in Lean with the
cultural, organizational process and analytical tools of Six Sigma
With the result that we
SIX SIGMA
LEAN
Respond to our Customers
Better, Faster and with Less Waste
15

Six Sigma and Lean Contributions
Six Sigma is the Unifying Framework
Six Sigma provides the over-riding methodology
D.M.A.I.C.: Define, Measure, Analyse, Improve and Control

D.M.E.D.I.: Define, Measure, Explore, Develop and Implement
The Design for Lean Six Sigma (DFLSS) project discipline
Six Sigma provides the improvement infrastructure

Six Sigma provides the burning platform for improvement
Lean provides
Practical point of execution methods
Key Lean analytical tools to visualize problems and pin-point where
to focus efforts
Powerful improvement tools to rapidly effect operations by
reducing waste and increasing process speed
A base platform for workforce to get involved with improvements
Key Learning
Understand the historic roots of modern Lean Six Sigma
Explain how Six Sigma and Lean have examples of great

success globally
Recognise the unification synergies of past methodologies

into modern Lean Six Sigma
16

Six Sigma
A Brief History
LSS e-Learning

Laws of Lean Six Sigma
Base Law of Lean Six Sigma: The Law of the Market
First Law of Lean Six Sigma: The Law of Flexibility
Process velocity is directly proportional to the flexibility of a given

process
Second Law of Lean Six Sigma: The Law of Focus
Critical Customer Requirements are always the highest priority
20% of activities cause 80% of delays in a given process
Third Law of Lean Six Sigma: The Law of Velocity
Velocity of any given process is inversely proportional to variation

in supply and demand, and the number of things in process
17
Adapted from the book Lean Six Sigma

Michael George, publisher McGraw-Hill

Key Perspective to
Succeeding at Lean Six Sigma
The three most important things in a Lean Six Sigma implementation

are
Focus
Focus
Focus
Some Lean Six Sigma Project
Focus Questions
Who are our customers?
What are their most important requirements?
What are our business priorities?
What is our current process lead time?
Where is the Time Trap operation in our process?
What projects should we work on first?
What improvement tools and techniques should we use?
18

DMAIC Funnel Concept and the

Project Discipline
Many prioritized projects in hopper
Next Project Selected
Define
Charter prepared and validated

What is happening?
Project Baseline Measured

Y = f(x)
Measure
Find Potential Root

Causes
Root Causes
Identified
and Verified
Analyse
Generate the
solution?
Improve
Improvements
Piloted
and Measured
Sustain the gains
Control
Self-sustaining
Institutionalize
Process
Lean Six Sigma DMAIC Milestone Map

15 Focus Steps
Develop Project
Charter
2
Collect &
Translate Voice
of the
Customer
3
13
10
Narrow
Potential
Causes (Xs)
Value Stream
Mapping
Data Collection
and Integrity
Validate Critical
Causes (Xs)
Develop Potential
Solutions
Plan & Execute

Full Scale
Implementation
14
11
Optimise
Best
Solution
Monitor, Control
& Transition
Process
15
12
Create High
Level Process
Map (SIPOC)
Compare
Process
Performance
Capture
Quick-Win
Opportunities
Plan &
Execute
Pilot
Validate
Benefits &
Close Project
Define
Milestone
Review
Measure
Milestone
Review
Analyse
Milestone
Review
Improve
Milestone
Review
Control
Milestone
Review
19

Problem Solving Approach

a Practical Guide
Our customers feel we
take too long on quotes.
1. Practical Problem
Create an as-is
Value Stream Map
2. Graphical Problem
Why do our quotes spend

63% of their time waiting?
3. Analytical Problem
Pareto of wait time in each

step of the process
4. Analytical Solution
Create a future state Value Stream

Map with improved lead time
5. Graphical Solution
Co-locate, implement a Work

Control System and Mistake-Proof
6. Practical Solution
The Statistical/ Analytical Thinking Approach
Y = f (X1, X2, X3, Xn)
Y= Output (Key Process Output)
f = function equation
X = Input (Key Process Input)
X1, X2, Xn = number of inputs that add up to equate to Y
Building the Transfer Function
20

Define Phase
Define
Focus Areas
Quality
Time
Cost
Project Charter:
1. Determine
VOC
VOB
3. Determine Focus Areas
4. Develop Project Charter
a. Problem Statement
b. Scope
c. Goals
d. Key metrics
e. Team roles
5. Map the process
a. High level charts
b. As-is mapping
2. Determine
Voice of the
Business
(VOB)
Growth
Scope, Goals, Metrics
VALUE STREAM MAP

Forecast, 6 Month, Fax
PURCHASING
MACHINING
& ASSEMBLY
CUSTOMER
SERVICE
MRP
MRP
MRP
Forecast, 90/60/30 Day, Fax

Customer
SUPPLIER
1/Week
Order, Weekly (5-day), Fax
20,000 pcs/mo
Order, Daily, Fax
Module=100
Work Orders, Daily Release, Paper

Receiving/Warehouse
2/Day
Voice of the
Customer
(VOC)
100 pcs
Daily schedule
Forge
Daily schedule
I
1000 pcs
C/T = 30 Sec
P/T = 20 Sec
C/O = 30 Min
Uptime 95%
Batch Size 100
1.8 hours
100 pcs
Forged material
Raw castings
Machine
C/T = 45 Sec
P/T = 35 Sec
C/O = 60 Min
Uptime 80%
Batch Size 100
23.7 hours
20 sec
100 pcs
Forgings, bolts, nuts, washers
Assy 1, o-ring, bearing, snap ring
Assy 2
Daily schedule
Daily schedule
Daily schedule
Assembly 1
C/T = 60 Sec
P/T = 50 Sec
C/O = 5 Min
Uptime 95%
Batch Size 100
92.1 hours
1.6 hours
50 sec
35 sec
Assembly 2
Distribution
1
100 pcs
5000 pcs
C/T = 50 Sec
P/T = 40 Sec
C/O = 10 Min
Uptime 95%
Batch Size 100
200 pcs
Production lead time

= 122.3 hrs
3 hours
Processing time
= 145 seconds
40 sec
Measure Phase
Measure
1. Identify the key process output variable - Y
2. Calculate total Process Lead Time
3. Develop Data Collection Plan
4. Perform Measurement System Analysis
5. Develop Control Charts
6. Determine Process Capability
7. Establish Measurement Baseline
8. Identify Quick Improvement opportunities
Value Stream Map

PURCHASING
MACHINING
& ASSEMBLY
CUSTOMER
SERVICE
MRP
MRP
MRP

Customer
SUPPLIER
1/Week
20,000 pcs/mo
Order, Daily, Fax
Module=100
Work Orders, Daily Release, Paper

Receiving/Warehouse
2/Day
100 pcs
100 pcs
Forged material
Raw castings
Daily schedule
Daily schedule
Forge
Machine
1000 pcs
23.7 hours
100 pcs
Forgings, bolts, nuts, washers
Assy 1, o-ring, bearing, snap ring
Assy 2
Daily schedule
Daily schedule
Daily schedule
Assembly 1
Assembly 2
100 pcs
C/T = 60 Sec
P/T = 50 Sec
C/O = 5 Min
Uptime 95%
Batch Size 100
92.1 hours
20 sec
Quick
Improvement
I
5000 pcs
C/T = 45 Sec
P/T = 35 Sec
C/O = 60 Min
Uptime 80%
Batch Size 100
C/T = 30 Sec
P/T = 20 Sec
C/O = 30 Min
Uptime 95%
Batch Size 100
1.8 hours
1.6 hours
C/T = 50 Sec
P/T = 40 Sec
C/O = 10 Min
Uptime 95%
Batch Size 100
3 hours

= 122.3 hrs
Processing time
= 145 seconds
40 sec
50 sec
35 sec
Distribution
1
200 pcs
Total Process Lead Time

Measurement
System Analysis
Process Capability
Control Charts
Xbar/R Chart for bore
Sample Mean
6.5
Process Capability Analysis for Baseline
UCL=6.435
LSL
Process Data
6.0
Mean=5.965
5.5
Subgroup
Sample Range
Data Collection Plan
LCL=5.494
1
700.000
Target
LSL
*
600.000
Mean
603.158
Sample N
UCL=3.039
R=1.770
17.9494
StDev (Overall)
17.3738
Within
Overall
Potential (Within) Capability

0.93
CPU
1.80
CPL
0.06
Cpk
0.06
Cpm
*
Overall Capability
21
USL
19
StDev (Within)
Cp
LCL=0.5012
USL
550
570
590
610
630
650
670
690
710
Pp
0.96
Observed Performance
PPM < LSL
368421.05
Exp. "Within" Performance

PPM < LSL
430173.27
Exp. "Overall" Performance

PPM < LSL
427884.92
PPU
1.86
PPM > USL
PPM > USL
PPM > USL
PPL
0.06
PPM Total
Ppk
0.06
0.00
368421.05
PPM Total
0.03
430173.30
PPM Total
0.01
427884.93

Analyse Phase
Y = f (x1, x2, x3, xn)
Analyse
1. Identify the key process
input variables x
2. Use Lean Six Sigma tools to
perform root cause analysis
to identify critical xs
Cause and Effect Matrix

Process Steps
a. Cause
and Effect matrix

b. Failure Modes and Effect
Analysis (FMEA)
c. Analysis of Variance ANOVA
d. Main Effects charts
e. Regression analysis
Arrive at
scheduled
time
Arrive with
proper
equipment
Dressed
properly
Process Inputs
Delivered via Take back to

correct
room
mode
promptly
2
FMEA
Process Step/ Potential
Potential S Potential
Input Failure Mode Failure Effects E Causes
V
What is the In what ways What is the impact E What causes
process step does the Key on the Key Output the Key Input
R
and input Input go
Variables
to go wrong?
I
under
wrong?
(Customer
T
investigaRequirements)? Y
tion?
Process Outputs
Importance
Correlation of Input to Output
Total
Patient Scheduled
63
Attendant Assigned
45
Attendant Arrives
45
Obtains Equipment
27
Transport Patient
45
Provide Therapy
Notifies of Return
45
Attendant Assigned
45
Attendant Arrives
45
Patient Returned
45
O
C
C
U
R
A
N
C
E
Current Controls D R Actions

E P Recommended
T N
What are the
E
actions for
C
reducing the
T
occurrence of the
I
cause, or
O
improving
N
detection?
Fil carafe with Wrong amount Coffee too strong or 8 Faded level 4 Visual inspection
water
of water
too weak
marks on
carafe
Water too
warm
Resp.
What are the existing

controls and
procedures
(inspection and test)
that prevent either the
cause or the Failure
Mode?
Actions
S O
Taken
E C
V C
What are the E U
completed actions
R R
taken with the
I A
recalculated RPN?
T N
Y C
E
D R
E P
T N
E
C
T
I
O
N
4 128 Replace carafe
Mel
Carafe replaced 8 1 3 24
8 Water spil ed 5
from carafe
None
9 360 Train employees
Flo
Employees trained 8 2 7 112
Coffee too strong 8 Faucet not 8

allowed to run
and cool
Finger
4 256 Train employees
Flo
Employees trained 8 2 6 96
ANOVA
Analysis of Variance for production

Source
DF
SS
MS
F
P
plan
4
105530
26382
24.14
0.000
Error
35
38244
1093
Total
39
143774
Individual 95% CIs For Mean
Based on Pooled StDev
Level
N
Mean
StDev ---+---------+---------+---------+--A
8
1104.4
46.2
(----*----)
B
8
1162.6
33.4
(----*---)
C
8
1059.0
33.7 (----*----)
D
8
1073.9
25.7
(----*----)
E
8
1192.8
20.2
(----*---)
---+---------+---------+---------+--Pooled StDev =
33.1
1050
1100
1150
1200
Main Effects Plot - Data Means for Impurity
Trivial many
Main Effects Charts

Day
Shift
Regression Analysis
R egres s ion P lot
Time
Y = de m an d = -4 08 .0 7 2 + 6.6 0 80 1 X =te m pe ra tu
0.038
S = 1 0 .4 1 6 3
R -S q = 9 3.6 %
R -S q(a d j) = 9 2.9 %
190
0.033
0.028
150
Y = demand
Impurity
170
0.023
Critical few
0.018
130
110
90
70
50
70
80
90
X =te m p e ra tu
Improve Phase
MACHINING
PURCHASING
& ASSEMBLY
Improve
Critical xs confirmed
1. Develop potential
solutions
2. Select solution
3. Optimize solution
4. Pilot solution
5. Develop new process
capability
Production
Control
SUPPLIER
700.00
Target
LSL
*
600.00
Mean
646.85
Sample N
StDev (Within)
20
6.14290
StDev (Overall)
6.84277
2.71
CPU
CPL
2.88
2.54
Cpk
2.54
Cpm
*
Overall Capability
Module=100
Daily
Kanban
Receiving
2/Day
Kanban
Kanban
Kanban
Machine
TPM
1
C/T = 30 Sec
Kanban
1
Set-up Reduction
200 pcs
1
DOE
C/T = 45 Sec
500 pcs
20 sec
Max 100
pcs
50 sec
FIFO
C/T = 50 Sec
Distribution
Max 200
pcs
C/O = 10 Min
Uptime 95%
Module Size 100
3.0 hours
1.6 hours
9.2 hours
35 sec
Within
Module Size100
Assembly
FIFO
C/T = 60 Sec
C/O = 5 Min
Uptime 95%
C/O = 10 Min
Uptime 95%
Batch Size 100
3.0 hours
USL
Assembly
Machine
50 sec

= 16.9 hours
Processing time
= 145 seconds
Overall
Solutions:
Setup Reduction
Maintenance Excellence
Replenishment Pull System
Design of Experiment
Potential (Within) Capability

Cp
20,000 pcs/mo
Order, Daily, Fax
er
rd r
O pe
ly a
ai p
D Via
USL
MRP
Warehouse
Process Capability Analysis for New Process

LSL

Customer
MRP
C/O = 30 Min
Uptime 95%
Batch Size 100
Process Data
CUSTOMER
SERVICE
600
620
640
Observed Performance
PPM < LSL
0.00
660
680
Exp. "Within" Performance

PPM < LSL
0.00
700
Exp. "Overall" Performance

PPM < LSL
0.00
Pp
2.44
PPU
2.59
PPM > USL
0.00
PPM > USL
0.00
PPM > USL
0.00
PPL
Ppk
2.28
2.28
PPM Total
0.00
PPM Total
0.00
PPM Total
0.00
22

Control Phase
Control
Eliminate defects
1. Write a Control Plan
2. Calculate final
financial/process metrics
3. Document project for
future implementation
4. Transition project to process
owners
PURCHASING
MACHINING
& ASSEMBLY
Production
Control
SUPPLIER
CUSTOMER
SERVICE

Customer
MRP
MRP
20,000 pcs/mo
Order, Daily, Fax
Daily
Module=100
Kanban
Receiving
er
rd r
O pe
ly a
ai p
D Via
1) Set-up reduction
2) Pull Systems
2/Day
3) TPM
Warehouse
Kanban
Kanban
Kanban
Machine
C/T = 30 Sec
200 pcs
C/O = 30 Min
Uptime 95%
Batch Size 100
Control Plan
Assembly
Machine
Kanban
C/T = 45 Sec
1
500 pcs
C/O = 5 Min
Uptime 95%
C/O = 10 Min
Uptime 95%
Batch Size 100
3.0 hours
20 sec
Module Size100
Assembly
FIFO
C/T = 60 Sec
Max 100
pcs
50 sec
35 sec
Control Plan
Distribution
Max 200
pcs
C/O = 10 Min
Uptime 95%
Module Size 100
3.0 hours
1.6 hours
9.2 hours
FIFO
C/T = 50 Sec
50 sec

= 16.9 hours
Processing time
= 145 seconds
Quality Checklist
Xbar/R Chart for bore

First/Last Piece
Sample Mean
6.5
UCL=6.435
6.0
Mean=5.965
5.5
Subgroup
Mistake-Proofing
100% Defect Prevention
LCL=5.494
1
Yearly Layout
Mistake Proofing
Sample Range
P/M Checklist
Visual Tools for

Fast feedback
UCL=3.039
R=1.770
1
LCL=0.5012
0
23

Six Sigma
Disciplined Approach
Tools & Toolsets
LSS e-Learning

Lean Six Sigma DMAIC Milestone Map

15 Focus Steps
Develop Project
Charter
2
Collect &
Translate Voice
of the
Customer
3
13
10
Narrow
Potential
Causes (Xs)
Value Stream
Mapping
Data Collection
and Integrity
Validate Critical
Causes (Xs)
Develop Potential
Solutions
Plan & Execute

Full Scale
Implementation
14
11
Optimise
Best
Solution
Monitor, Control
& Transition
Process
15
12
Create High
Level Process
Map (SIPOC)
Compare
Process
Performance
Capture
Quick-Win
Opportunities
Plan &
Execute
Pilot
Validate
Benefits &
Close Project
Define
Milestone
Review
Measure
Milestone
Review
Analyse
Milestone
Review
Improve
Milestone
Review
Control
Milestone
Review
24

Lean Six Sigma
Lean Thinking Concept Map
Use Kaizen techniques with Lean tools for specific solutions

5S, Rapid Change-over, NVA elimination, Work control, balance & flow, pull systems
Queue
Integration Skills
Tools
Process
Buffer
Fundamentals
Kaizen Method + Tribal Knowledge + Current State Mapping + Brainstorming techniques
Pull Systems
Supplier
1 & 2 Bin
Kanban
Queuing Theory
Vendor Certification
Understanding Speed
Constraint Identification
Time Trap Strategy
Process Cycle Efficiency
TAKT-Time Analysis
NVA elimination
5S Safe, Orderly & Clean

Value Stream Mapping
Work Stability Systems
Process Flow Techniques
Process Balancing
Visual Workplace
TPM
Poke Yoke
Batch Size Control

Rapid Changeover
Lean Layout Design
Visual Management
Pull Systems
Replenishment
Strategic Stocking
Supplier
1 & 2 Bin
Kanban
Part Stratification
What Are the Basic

Lean Six Sigma Tools?
Primarily involve brainstorming, idea generation, and

decision making
Intuitive in nature; easily taught, understood, and applied
Ideal for use with teams and user groups
Essential skills are developed by applying these

fundamental toolsets within a focused project environment
25

Basic Lean Six Sigma Tool Examples
Process Mapping
C&E Matrices
Constraint Management
Mistake-Proofing
Process Flow
Affinity
Line Balancing
Interrelationship Digraphs
Value Analysis
Force Field Analysis
Brainstorming
Nominal Group Technique
Check Sheets
Multi-voting
Materials Management
Shop Floor Controls
Kaizen
Vendor Certification/
Scorecards/Lead-Time Reduction
Run Charts
Histograms
Scatter Diagrams
Control Charts
Pareto Analysis
Supplier Communication
C&E/Fishbone Diagrams
Order Management/Case Teams
What Are the Advanced

Lean Six Sigma Tools?
Statistical tools requiring more in-depth knowledge of

statistical principles, graphical and analytical techniques
Lean analytical tools may involve multi-company, multifunctional, or senior management participation to
formulate enterprise strategies and implementation
pathways
26

Advanced Lean Six Sigma Tool Examples

Gauge
R&R
Capability
Modes and Effects

Analysis (FMEA)
Studies: Cp & Cpk
Multivariate
Main
Failure
Design
Charts
Hypothesis
Effects Plots
Response
Interaction
Plots
Regression
Analysis
Analysis
proportions
Quality
(QFD)
Make
of Variance (ANOVA)
Non-parametric
of Experiments (DOE)
and
Testing
Surface Methodology
vs. Buy
Replenishment
Plant
Systems
consolidation
Strategic
sourcing
Function Deployment
Are you Fixing or Designing a Process?

Design for Innovation
Define
The Lean Six Sigma new

Design discipline
No
DMEDI
Steps to
design a new
product or
process
The Lean Six Sigma

Improvement discipline
Does
Process
Exist?
Yes
Measure
Measure
Analyze
Explore
Develop
No
Is
Incremental
Improvement
Enough?
DMAIC
Steps to
improve an
existing
process
Yes
Improve
Implement
Control
27

Identify When to Use the

Lean Six Sigma Process?
You have a challenging goal to reach or issue to solve
You have a group of people with the necessary

background to be able to contribute intelligently to identify
and/or solve the issue
You want a more creative and/or robust solution than you

can develop on your own
You want to encourage the empowered flow of ideas and

build team unity
You want group ownership of a course of action
When NOT to Use the

Lean Six Sigma Process?
You only want to disseminate information
You just want a progress check.
You dont have a specific challenge or clear issue to solve
You already have a solution and course of action, and are

not interested in group input or determining if your
solution addresses the root cause
28

Key Learning
Market forces are driving improvement
The power of the unified Lean Six Sigma approach
The importance of each of the five Phases of D.M.A.I.C.
The Lean Six Sigma problem solving sequence
Basic and Advanced Lean Six Sigma Tools & Toolsets
D.M.A.I.C Roadmap
Lean Thinking Concept Map
Design for Innovation (D.M.E.D.I.)
LSS e-Learning
This Training Manual and all materials, procedures and systems herein contained or depicted (the
"Manual") are the sole and exclusive property of Kirtland Leadership Pty Ltd/ Lean Six Sigma
Australasia (LSSA).
The contents hereof contain proprietary trade secrets that remain the private and confidential property
of LSSA. Unauthorized use, disclosure, or reproduction of any kind of any material contained in this
Manual is expressly prohibited. The contents hereof are to be returned immediately upon termination
of any relationship or agreement giving user authorisation to possess or use such information or
materials. Any unauthorised or illegal use shall subject the user to all remedies, both legal and
equitable, available to LSSA. This Manual may be altered, amended or supplemented by LSSA from
time to time. In the event of any inconsistency or conflict between a provision in this Manual and any
federal, provincial, state or local statute, regulation, order or other law, such law will supersede the
conflicting or inconsistent provision(s) of this Manual in all properties subject to that law.
2012 by Kirtland Leadership Pty Ltd
All Rights Reserved.
Lean Six Sigma Australasia is a registered name of

Kirtland Leadership Pty Ltd
LSS e-Learning

29


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Identify Lean Six Sigma Opportunity

Lean Six Sigma

91558NSW Graduate Certificate in Lean Six Sigma

91558NSW Graduate Certificate in Lean Six Sigma

91558NSW Graduate Certificate in Lean Six Sigma

Identify Lean Six Sigma Opportunity

Lean Six Sigma Graduate Program

91557NSW Graduate Diploma of Lean Six Sigma

91558NSW Graduate Certificate in Lean Six Sigma

One Recognised Level of

Bachelor Honours Degree

Higher than a Bachelor Degree

Units of Competency for

You must obtain

Apply Lean Six Sigma fundamental

Use the DMAIC framework and

Structure and validate a viable

A comprehensive project charter document

91558NSW Vocational Graduate Certificate in Lean Six Sigma

Segmentation report. Customer Critical

Determine probable cause using

Show documentary use of team generated

Achieve process stability using

Use structured lateral thinking

Demonstrate use of analytical approach to

91558NSW Graduate Certificate in Lean Six Sigma

Identify Lean Six Sigma Opportunity

A range of assessment strategies is employed for this

reports and interviews

Follow the disciplined approach,

As a natural output of executing a Lean Six Sigma project which necessitates

It is important to keep detailed project notes and presentations as you execute

Fault Tree Analysis

Likeliness of Failure: 1-10 with 10 representing most likely

Casing Defect Tracking

91558NSW Graduate Certificate in Lean Six Sigma

Identify Lean Six Sigma Opportunity

91558NSW Graduate Certificate in Lean Six Sigma

Understand a brief History of Six Sigma and Lean

Realize the importance of each of the five Phases of the

Understand the Lean Six Sigma problem solving approach

Introduce the Basic and Advanced toolkits

91558NSW Graduate Certificate in Lean Six Sigma

Identify Lean Six Sigma Opportunity

91558NSW Graduate Certificate in Lean Six Sigma

The Modern Market Drivers of

Quality is driven by customer expectation, it is a must in the

Quality is also demanded to better the competition

Customer loyalty and retention is critical

Lowering costs generates greater opportunity to realize

Customers are demanding shorter and more predictable lead

91558NSW Graduate Certificate in Lean Six Sigma

Identify Lean Six Sigma Opportunity

Lean Six Sigma is the Integration of Two

Establishes a common methodology and language across the whole

Common terminology enables more rapid replication of successes as

Establishes a single framework for solving process problems in all areas of

Stream-lines project prioritization and selection into one funnel of

Equips project leaders a greater opportunity to select the right approach

Best of Both Worlds

LEAN SIX SIGMA

91558NSW Graduate Certificate in Lean Six Sigma

Identify Lean Six Sigma Opportunity