INTRODUCTION TO

LEAN SIX SIGMA:

A Course Overview
Jorge Luis Romeu, Ph.D.
Quanterion Solutions Inc.

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Defining Quality

Quality is in the eyes of the beholder

Fitness for use
Customer satisfaction and loyalty

Customer Focus/Customer Centered

Measuring Quality:
Service speed, accuracy, availability
Courtesy, information, follow-up ...
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Defining Quality:

Big Q versus Little Q

From the Old to the New Quality

The Cost of Poor Quality (COPQ)

Up-Front and Hidden Costs

Delight your Customers:

Improve Quality and Speed

Improve your Processes:

Decrease Variation, Defects and Time
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Two approaches to Quality

Little q
Traditional quality function:
Reactive, finding issues, manufacturing
Control Charts, Acceptance Sampling

Big Q
New approach to Quality:
Proactive, preventing, all services
Product as well as Process
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Two Dimensions of Q

Features
Affects income (sales)
Ease of use, appearance, price, etc.
Refers to Quality of Design

Freedom from Deficiencies

Affects service costs
Defects, failures, waste, etc.
Refers to Quality of Conformance
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Cost of Poor Quality (COPC)

Types: up-front and hidden costs

Difficult to notice and/or recognize
Service defects (unavailability)
Inefficient processes (slow)
Lost opportunities (sales/revenues)
Appraisal and Prevention costs
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Improvement Advantages

Quality Improvement pays!

Increases customer loyalty
Increases your reputation
Increases customer base
Reduces customer complaints
Reduces warranty costs
Reduces service time/costs
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Improve your Process Quality

Optimize Process Flow: Lean
Document how work gets done
Examine and improve work flow
Eliminate waste and non-value added

Minimize Variation: Six Sigma

Variation, variability and variance
Variation defines the Six Sigma level
Identify factors that increase variation
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Lean Manufacturing and Kaisen

Kaisen: Continuous Improvement
Achieved by reducing the three Evil Ms
Muda: waste or non-value added
process activities
Mura: inconsistent use of people
And of processes
Muri: excessive demands on people
And on processes
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Lean Manufactuging and the 5 Ss

The Five Kaisen Principles
Sort: keep only necessary things
Set in Order: arrange efficiently
Shine: maintain cleanliness/avoid clutter
Standardize: proceed consistently
Sustain: cooperative working environment
Use Team Effort to Succeed!

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The Eight Wastes

Overproduction: too much or too early

Waiting: for information, people, materials
Transportation: moving things around
Process Design: too many or too few steps
Inventory: work in progress, electronic files
Motion: poor layout and ergonomics
Defects: errors, scrap, rework, etc.
Under-utilization: of personnel or resources
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The Seven Basic Quality Tools

Flow Charts
Ishikawa Diagrams
Check lists
Pareto Charts
Histograms
Scatter Diagrams
Control Charts
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Some Uses of these Tools

Pareto Charts
Identify the Relevant Few Factors

Ishikawa Charts
Identify Factors Impacting Response

Affinity Diagrams
Groupings of Similar Ideas

Check Lists
Provide Order and Inclusion
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Example of Pareto Chart

P a r e to C h a r t fo r S p e c ia l
100

60
50

80

C ount 40

60

P e rc

30
40
20
20

10

S p e c ia lt y
C ount
P e rc e n t
C um %

Q&R

13
2 0 .3
2 0 .3

M E

11
1 7 .2
3 7 .5

C hem

11
1 7 .2
5 4 .7

IE

10
1 5 .6
7 0 .3

U nkn

6
9 .4
7 9 .7

EE

5
7 .8
8 7 .5

M a t e r ia l s

4
6 .2
9 3 .7

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C iv il

3
4 .7
9 8 .4

O th e r s

1
1 .6
1 0 0 .0

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Ishikawa or Fishbone Chart

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Control Chart for Number of Errors

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Value Stream and State Maps

Flowchart of process activities (map)
Include in each node, information on:

Average Time in Node

Up Time (percentage)
Delays and Queues
Activity Yield/Output
Manpower Required
Other Information
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Value-Added work
The contribution to item real value
Is in the eyes of your customer

Non-Value-Added work (waste)

Can be dismissed without loss

Main Goal of Lean (and Six Sigma)

Eliminate all possible waste

Identify waste in the process flow!

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SIPOC Charts for Key Activities

Supplier:

Who provides you with input?

Input:
What input is being provided?
Process:
What do you add to product?
Output:
What is such contribution result?
Customer:
Who do you pass the product to?
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Example of House of Quality

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Six Sigma Philosophy: DMAIC

1.
2.
3.
4.
5.

Define: identify areas of variability

Measure: data collection
Analyze: relevant information
Improve: selected areas
Control: manage changes

Result: Sustained change.

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Assessing Process Capability

Improved Process Capability
LSL

USL
Within
Ov erall

P rocess Data
LS L
24
Target
*
USL
36
S ample M ean
29.9272
S ample N
100
S tD ev (Within)
1.7824
S tD ev (O v erall) 1.84826

P otential (Within) C apability

1.12
Cp
C PL
1.11
C PU
1.14
C pk
1.11
C C pk 1.12
O v erall C apability
Pp
PPL
PPU
P pk
C pm

24
O bserv ed P erformance
P P M < LS L 0.00
P P M > U S L 0.00
P P M Total
0.00

26

28

E xp. Within P erformance

P P M < LS L 441.45
P P M > U S L 328.28
P P M Total
769.73

30

32

34

1.08
1.07
1.10
1.07
*

36

E xp. O v erall P erformance

P P M < LS L
670.86
PPM > USL
508.66
P P M Total
1179.53

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Combining Lean and Six Sigma

Lean: reduces waste; improves flow
Streamlines your operation to a new level

Six Sigma: reduces process variation

Optimizes your current operation

Lean alone: cuts process extra fat

Six Sigma: improves as is system
Their Combination: New and Improved!
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Implementing/Staffing Lean-Six Sigma

Champion: Executive sponsoring Lean

Process Owner: has a vested interest
Black Belt: technically trained in job
Master Black Belt: BB plus experience
Green/Yellow/White Belts: lower levels
Intermediate, introductory, awareness
Green Belts can lead small projects.
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Examples of Lean-Six Sigma

Lean:
Streamlining and organizing
Eliminating superfluous steps
Shortening the processing time

Six Sigma:
Identifying areas of variability
Reducing overall variability
Improving Process Capability

Combined: streamline and optimize!

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Bibliography
What is Lean-Six Sigma?
ASQ; George, Rowlands & Kasle (2004)

Quality Toolkit
RIAC; A. Coppola (2002)

Total Quality Management TQM Toolkit

RIAC; A. Coppola (1993)

A Guide for Implementing TQM

RIAC; Crosier (1990)
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