Lean Six Sigma Overview - White Belt Training

Lean Six
Sigma
Lean Six Sigma

White Belt Training
Copyright 2005, AIT Group Inc. All rights reserved. 1

Learning Objectives Lean Six
Sigma
• Know the origin and aims of Lean, Six Sigma, and Lean
Six Sigma
• Understand the roles and responsibilities within a Lean
Six Sigma Deployment
• Learn the Lean Six Sigma terms and definitions
• Understand many of the tools and methods used in a
Lean Six Sigma project and deployment

Lean Six
WIIFM (What’s In It For Me) Sigma
• Get rid of those problems that are taking all of your valuable time!
• Management’s ear
• An effective communication tool and common ‘language’
• A community within the company – your classmates and previous
classes
• Further develop group leadership skills
• Potential career advancement
• Stretch growth – satisfaction!
• Personal growth experience
• Fun!

…yah but how will Lean Six Sigma do Lean Six
that for me??? Sigma
• It is a problem solving methodology to put recurring problems to bed!
• It will facilitates communication between people with different backgrounds and from
different functions
• Allows you to leverage and build on what you already know!
• Can be applied in all areas of your life and career
• It is built on standard tools and a standard methodology – helps simplify your
discussions!
• Helps drive focus and prevents gaps in logic
• Uses data for sound conclusions
• Focuses on fundamentally solving a problem NOT on adding band-aids and
additional complexity
• Requires team involvement and emphasizes sound communication
• Minimizes emotion and conflict and moves to data-driven process-based solutions
• It is visible to higher levels of the company
• It has been proven successful across many industries, solved countless problems
and saved billions of dollars
Focus on creating opportunities vs. resource constraints

What Do Our Clients Want? Lean Six
Sigma

Lean History Lean Six
Sigma

Lean Six
Origins of Lean Sigma
• Lean has been around a long time:

• Pioneered by Ford in the early 1900’s (33 hrs from iron ore to finished Model T,
almost zero inventory but also zero flexibility!)
• Perfected by Toyota post WWII (multiple models/colours/options, rapid setups,
Kanban, mistake-proofing, almost zero inventory with maximum flexibility!)
• Known by many names:

• Toyota Production System
• Just-In-Time (JIT)
• Continuous Flow
• Outwardly focused on being flexible to meet customer

demand, inwardly focused on reducing/eliminating the
waste and cost in all processes
• Highly applicable to transactional businesses!
• Whenever flexibility and speed are key: banks, technology firms and customer
service organizations the most recent to adopt Lean practices

The Mathematical Foundation for Lean Six
Lean is Little’s Law Sigma
• To reduce Lead time, you have 2 choices:

• Invest dollars of capital in people and equipment to increase Avg.
Completion Rate
• Invest Intellectual capital to reduce number of “Things In Process” using
Lean Tools (Pull Systems, Setup Reduction, etc) and Six Sigma tools
(Variation Reduction)
• Little’s Law: Mathematics of Theory of Constraints (TOC) and
Toyota Production System (TPS)
No.of " Things In Process"

Avg Lead Time =
Avg Completion Rate

Sources of Waste Lean Six
Sigma
1. Transportation (moving items from one place to another)
2. Inventory (items/paperwork/information waiting to be processed)
3. Motion (excess movement and/or poor ergonomics)
4. Waiting (delays caused by shortages, approvals, downtime)
5. Overproduction (producing more than is needed)
6. Overprocessing (adding more “value” than the customer is paying

for)
7. Defects (rework, scrap, inspection – Costs of poor quality)
Another waste is: People (untapped and/or misused resources)

Toyota Production System – Waste Lean Six
Elimination (Applies to Every Process) Sigma
“The ability to eliminate waste is developed by

giving up the belief that there is ‘no other way’
to perform a given task. It is useless to say, ‘It
has to be done that way,’ or ‘This can’t be
helped!’
At Toyota, we have found that there is always

another way.”
– Study of the Toyota Production System

Lean Defined Lean Six
Sigma
• What Lean Is:

• An enabler to business strategy
• A way to remove waste from processes and practices
• Focused on process speed and flexibility
• Driven by quick-hit, high-impact team events to solve
problems
• A way to visualize processes through value-stream mapping
• A way to teach people how to “think” about streamlining
• What Lean Is Not:
• A business strategy
• Only for manufacturing companies
• About headcount reductions
• Only about the tools

Lean Six
But Lean Alone Has Holes Sigma
• Lacks defined cultural infrastructure

• Top leadership engagement
• Deployment organization (Champions, Black Belts, etc.)
• Sometimes lacks focus on customer
• Lacks a consistent methodology
• Most lean efforts lack focus on variation elimination and
simply “account for” the variability by carrying excess
inventory and resources
• Lean tools do not intrinsically focus on bringing a
process under statistical control and maintaining that
control allowing for unpleasant surprises

Six Sigma History Lean Six
Sigma

Sigma
• Motorola was the first advocate in the 80’s

• Six Sigma Black Belt methodology began in late 80’s/early 90’s
• More recently, other companies have embraced Six Sigma:
• GE
• Allied Signal
• Bombardier
• Sony
• Project implementers names includes “Black Belts”, “Top Guns”, “Change
Agents”, “Trailblazers”, etc.
• Implementers are expected to deliver annual benefits between $500,000
and $1,000,000 through 3-5 projects per year
• Top-down program with Executive and Champion support
• Outwardly focused on Voice of the Customer, inwardly focused on using
statistical tools on projects that yield high return on investment

Sigma
• Nobody at GE gets promoted without Six Sigma training.

• GE annual report examples:
• 10-fold increase in life of 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 “one free plant”

How Complex Are Your Products & Services? Lean Six
(% Shippable without Rework) Sigma
# of Parts ±3σ ±4σ ±5σ ±6σ

or Steps (Cp=1.00)* (Cp=1.33)* (Cp=1.67)* (Cp=2.00)*
1 93.32% 99.38% 99.98% 99.9997%
2 87.08% 98.76% 99.95% 99.9993%
3 81.27% 98.15% 99.93% 99.9990%
4 75.84% 97.54% 99.91% 99.9986%
5 70.77% 96.93% 99.88% 99.9983%
10 50.09% 93.96% 99.77% 99.9966%
30 12.56% 82.96% 99.30% 99.9898%
50 3.15% 73.24% 98.84% 99.9830%
100 0.10% 53.64% 97.70% 99.9660%
300 15.43% 93.26% 99.8980%
500 4.44% 89.02% 99.8301%
1,000 0.20% 79.24% 99.6605%
3,000 49.75% 98.9849%
5,000 31.24% 98.3140%
10,000 9.76% 96.6564%
* Distribution shifted by 1.5σ

Why 99% Is Not Good Enough Lean Six
Sigma
• The “goodness level” of 99% equates to:

• 20,000 lost articles of mail per hour
• 5,000 incorrect surgical operations per week
• 200,000 wrong drug prescriptions each year
• No electricity for almost 7 hours per month

Lean Six
Six Sigma Defined Sigma
• What Six Sigma Is:

• An enabler to business strategy
• Places customers at the center of performance improvements
• Fact-based approach for improving business processes and solving business
problems
• A proven methodology and toolset supported by deep training and mentoring
• Focused on reducing variability of processes
• A way to develop highly skilled business leaders
• A means for creating capacity in organizations
• What Six Sigma Is Not:

• A business strategy
• A way to develop statisticians and engineers
• Only for manufacturing companies
• Only about “cost reductions”
• A “flavor of the month” approach
• An approach that slows decision making and business outcomes

Lean Six
But Six Sigma Alone Has Holes Sigma
• Six Sigma lacks many concepts and tools lean is strong in

• Set-up reduction
• Waste elimination
• Mistake Proofing
• Cycle-time improvement
• Process simplification
• Work in process control and reduction
• Six Sigma has long time-lines for projects (4-18 months)
compared to Lean (1-4 months)
• Six Sigma specialists (Black Belts) are often less productive
than Lean specialists
• Six Sigma Black Belts do 3-5 projects a year
• Dedicated Lean project leaders do 10-20 projects a year
• Six Sigma is often seen as being “too slow”

Lean Six
Sigma
Lean and Six Sigma Integration

Lean Six
Six Sigma & Lean Integration Sigma
Why Integrate?
“We knew we wanted to have Six Sigma Tools, that was clear.
But we also decided that what really makes change in a factory
are some of the Lean tools. Putting in a pull system, reducing
batch sizes, significantly changing setup times, all of a sudden
everything starts to flow.
Those are the types of things we saw over time that really
made a difference in our factories and so we said that has to
be a part of this training.”
– Lou Guiliano, ITT Industries CEO
on integrating lean techniques into
ITT’s Six Sigma Rollout

Lean Six
Lean and Six Sigma Together Sigma
Lean Six Sigma

X +
Speed + Waste Quality, Cost +
Implicit Approach Explicit Approach
• Goal – Reduce waste and • Goal – Improve performance
increase process speed Lean on Critical Customer
• Focus – Bias for action/ Six Requirements
Utilize existing, proven Lean Sigma • Focus – Use repeatable
Tools DMAIC approach for sustained
• Method – Kaizen events, results
Value Stream Mapping • Method – Intense focus on
projects, performance
improvement a key
leadership activity
Lean Speed Enables Six Sigma Quality Enables

Six Sigma Quality Lean Speed
(Faster Cycles of (Fewer Defects Means
Experimentation/Learning) Less Rework)

Six Sigma with Lean Is the Integration of Two Lean Six
Powerful Business Improvement Approaches Sigma
Precision + Accuracy + VOC Speed + Low Cost + Flexibility
• Six Sigma • Lean

• Voice of the Customer (VOC) • Value stream mapping
• Statistical Process Control • Bottleneck identification and
• Design of Experiment removal
• Error-proofing • “Pull” from the Customer
• Measurement Systems Analysis • Setup and queue reduction
• Failure Modes Effect Analysis • Process flow improvement
• Cause and Effect Analysis • Kaizen
• Hypothesis Testing • Supply Chain Strategy
• 5S
• S&OP

Integrating Lean and Lean Six
Six Sigma Initiatives Sigma
• Lean and Six Sigma can co-exist independently,

but the benefits of integration are tremendous...
• Single channel for employing limited resources
• One improvement strategy for the organization
• Highly productive and profitable synergy
…while the pitfalls of not integrating them are
formidable
• Divided focus of the organization
• Separate and unequal messages for improvement
• Destructive competition for resources and projects

Lean Six
Six Sigma and Lean Sigma
• Six Sigma is the “Unifying Framework”

• Six Sigma provides the improvement infrastructure
• CEO Engagement
• Deployment Champions
• Green Belts, Black Belts, Master Black Belts
• Over-riding methodology: DMAIC, DMEDI, DMADV
• Lean provides additional tools and approaches to
“turbo-charge” improvement efforts
• Tools: Set-up reduction, 5S, Kanban, Waste Reduction
• Approaches: Kaizen, Mistake-proofing

Lean Six
Lean Six Sigma Synergy Sigma
Overall Yield vs. Sigma

(Distribution Shifted ±1.5σ)
# of Steps ±3σ ±4σ ±5σ ±6σ
1 93.32% 99.379% 99.9767 99.99966%

Lean Reduces Non-Valued Add Steps
u sly
7 61.63 95.733 99.839 neo 99.9976
ulta
t Sim
Cos
10 50.08 93.96 d 99.768 99.9966
an
e ed
Sp
lity,
20 25.08 s Qua 88.29 99.536 99.9932
rive
a D
m
Sig
40 Six 6.29 77.94 99.074 99.9864
an
Le
Six Sigma Improves Quality of Value Add Steps
Source: Six Sigma Research Institute, Motorola University, Motorola, Inc.

Lean Six Sigma Lean Six
Improvement Process Road Map Sigma
Define Measure Analyze Improve Control
Activities
• Review Project Charter • Value Stream Map for Deeper • Identify Potential Root • Develop Potential Solutions • Implement Mistake Proofing
• Validate Problem Statement Understanding and Focus Causes • Evaluate, Select, and Optimize • Develop SOP’s, Training Plan
and Goals • Identify Key Input, Process and • Reduce List of Potential Best Solutions & Process Controls
• Validate Voice of the Customer Output Metrics Root Causes • Develop ‘To-Be’ Value Stream • Implement Solution and
& Voice of the Business • Develop Operational Definitions • Confirm Root Cause to Map(s) Ongoing Process
• Validate Financial Benefits • Develop Data Collection Plan Output Relationship • Develop and Implement Pilot Measurements
• Validate High-Level Value • Validate Measurement System • Estimate Impact of Root Solution • Identify Project Replication
Stream Map and Scope • Collect Baseline Data Causes on Key Outputs • Confirm Attainment of Project Opportunities
• Create Communication Plan • Determine Process Capability • Prioritize Root Causes Goals • Complete Control Gate
• Select and Launch Team • Complete Measure Gate • Complete Analyze Gate • Develop Full Scale • Transition Project to Process
• Develop Project Schedule Implementation Plan Owner
• Complete Define Gate • Complete Improve Gate
Identify and Implement Quick Improvements

Tools
• Project Charter • Value Stream Mapping • Process Constraint ID and Takt Kaizen, 5S, NVA Analysis, • Mistake-Proofing/
• Voice of the Customer and • Value of Speed (Process Cycle Time Analysis Generic Pull Systems, Zero Defects
Kano Analysis Efficiency / Little’s Law) • Cause & Effect Analysis Four Step Rapid Setup Method • Standard Operating
• SIPOC Map • Operational Definitions • FMEA Procedures (SOP’s)
• Replenishment Pull/Kanban
• Project Valuation / ROIC • Data Collection Plan • Hypothesis Tests/Conf. • Process Control Plans
• Stocking Strategy
Analysis Tools • Statistical Sampling Intervals • Visual Process Control Tools
• Process Flow Improvement
• RACI and Quad Charts • Measurement System Analysis • Simple & Multiple Regression • Statistical Process Controls
• Process Balancing
• Stakeholder Analysis (MSA) • ANOVA (SPC)
• Analytical Batch Sizing
• Communication Plan • Gage R&R • Components of Variation • Solution Replication
• Total Productive Maintenance
• Effective Meeting Tools • Kappa Studies • Conquering Product and • Project Transition Model
• Design of Experiments (DOE)
• Inquiry and Advocacy Skills • Control Charts Process Complexity • Team Feedback Session
• Solution Selection Matrix
• Time Lines, Milestones, • Histograms • Queuing Theory
• Piloting and Simulation
and Gantt Charting • Normality Test
• Pareto Analysis • Process Capability Analysis

Lean Six
Define Sigma
• Develop a Project Charter with the Project Focus, Key Metrics,

and Project Scope
• Select Team Members and Launch Project
• Identify Stakeholders and develop a communication plan
• Identify the Customers and Capture the “Voice of the
Customer” Requirements (typically Quality and/or Speed)
• Identify the Process Owner and Capture the “Voice of the
Business” Requirements (typically Cost and/or Speed)
• Develop Critical Customer Requirements (CCR’s) and Critical
Business Requirements (CBR’s)
• Finalize Project Focus and Modify Project Charter
• Define Gate Review
= key deliverable
Measure Lean Six
Sigma
• Identify Key Input, Process and Output Metrics

• Clearly define Operational Definitions
• Develop a Data Collection Plan
• Validate the Measurement Systems
• Collect Baseline Data
• Determine Process Performance / Capability
• Validate the Business Opportunity
• Identify “Quick Win” Opportunities
• Measure Gate Review
= key deliverable
Lean Six
Analyze Sigma
• Brainstorm Key Process Input Variables & Key Process

Variables (KPIVs & KPV’s, I.e. Potential Root Causes)
• Prioritize Root Causes
• Conduct Root Cause Analysis
• Validate the Root Causes
• Estimate the Impact of Each Root Cause on the Project’s
Performance Output
• Quantify the Opportunity
• Prioritize Root Causes
• Analyze Gate Review
= key deliverable
Improve Lean Six
Sigma
• Develop Potential Solutions

• Develop Evaluation Criteria & Select Best Solutions
• Evaluate the Solutions for Risk
• Optimize the Solution
• Develop ‘To-Be’ Process Map(s) and High-Level
Implementation Plan
• Develop Pilot Plan and Pilot the Solution
• Improve Gate Review
= key deliverable
Lean Six
Control Sigma
• Institutionalize Process Changes and Controls

• Finalize SOP’s, Training Plan & Process Control System
• Implement Process Changes and Controls
• Stabilize and Begin Monitoring the Process
• Transition Project to Process Owner
• Identify Project Replication Opportunities
• Prove Changes Resulted In Improvement
• Calculate Financial Benefits
• Control Gate Review
= key deliverable
Author Lean Six
Sigma
Steven Bonacorsi is a Senior Master Black Belt instructor and

coach. He has trained hundreds of Master Black Belts, Black Belts,
Green Belts, and Project Sponsors and Executive Leaders in Lean
Six Sigma DMAIC and Design for Lean Six Sigma process
improvement methodologies. Steven is a board member for the
Boston Chapter of the Industry of Industrial Engineers.
Full Bio: http://www.linkedin.com/in/stevenbonacorsi
Lean Six Sigma White Belt Certification:

• Add Lean Six Sigma White Belt (Basic Awareness) Training and Certification to
your Resume or Job Skills.
• Learn topics from one of the original Master Black Belts and world experts on
Value Stream Mapping, 5s, Process Capability, Deployment Planning, Roles and
Responsibilities, FMEA Risk Analysis, Control Plans and more.
• Certificates will be signed for all who complete the 2 hour training session.

Learn More about The AIT Group Lean Six
http://www.theaitgroup.com Sigma

Lean Six
Who is AIT? Sigma
• AIT is a premier provider of Lean, Six Sigma and The AIT Group is an international
Supply Chain solutions. consulting firm that has been
specifically designed to help
• Solutions are customized to the customer – not
companies increase profitability by
one size fits all.
improving overall business
• The company was started in 1998 by three performance and customer
individual that recognized extremely early in the satisfaction through the integrated
industry how well Lean, Six Sigma and Supply application of:
Chain disciplines integrate.
• Our goal is the complete transfer of knowledge
via client specific solutions – not training.
Lean Supply
• Your instructors from AIT are Certified Master
Chain
Black Belts and Lean Experts.
Mgmt.
• We have worked with many different clients and Value
some of the largest companies in the world.
$
• We have Offices in the US, Europe, Mexico and
China.
Six Sigma
www.theAITgroup.com
The
TheAIT
AITGroup
Groupexcels
excelsin
inimplementation
implementation…
… not
notrecommendation!
recommendation!

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Lean Six

Lean Six Sigma

Copyright 2005, AIT Group Inc. All rights reserved. 1

Copyright 2005, AIT Group Inc. All rights reserved. 2

Copyright 2005, AIT Group Inc. All rights reserved. 3

Focus on creating opportunities vs. resource constraints

Copyright 2005, AIT Group Inc. All rights reserved. 5

Copyright 2005, AIT Group Inc. All rights reserved. 6

• Lean has been around a long time:

• Known by many names:

• Outwardly focused on being flexible to meet customer

Copyright 2005, AIT Group Inc. All rights reserved. 7

• To reduce Lead time, you have 2 choices:

No.of " Things In Process"

Copyright 2005, AIT Group Inc. All rights reserved. 8

1. Transportation (moving items from one place to another)

2. Inventory (items/paperwork/information waiting to be processed)

3. Motion (excess movement and/or poor ergonomics)

4. Waiting (delays caused by shortages, approvals, downtime)

5. Overproduction (producing more than is needed)

6. Overprocessing (adding more “value” than the customer is paying

7. Defects (rework, scrap, inspection – Costs of poor quality)

Another waste is: People (untapped and/or misused resources)

Copyright 2005, AIT Group Inc. All rights reserved. 9

“The ability to eliminate waste is developed by

At Toyota, we have found that there is always

Copyright 2005, AIT Group Inc. All rights reserved. 10

• What Lean Is:

Copyright 2005, AIT Group Inc. All rights reserved. 11

• Lacks defined cultural infrastructure

Copyright 2005, AIT Group Inc. All rights reserved. 12

Copyright 2005, AIT Group Inc. All rights reserved. 13

• Motorola was the first advocate in the 80’s

Copyright 2005, AIT Group Inc. All rights reserved. 14

• Nobody at GE gets promoted without Six Sigma training.

Copyright 2005, AIT Group Inc. All rights reserved. 15

# of Parts ±3σ ±4σ ±5σ ±6σ

* Distribution shifted by 1.5σ

• The “goodness level” of 99% equates to:

Copyright 2005, AIT Group Inc. All rights reserved. 17

• What Six Sigma Is:

• What Six Sigma Is Not:

Copyright 2005, AIT Group Inc. All rights reserved. 18

• Six Sigma lacks many concepts and tools lean is strong in

Copyright 2005, AIT Group Inc. All rights reserved. 19

Lean and Six Sigma Integration

Copyright 2005, AIT Group Inc. All rights reserved. 20

Copyright 2005, AIT Group Inc. All rights reserved. 21

Lean Six Sigma

Lean Speed Enables Six Sigma Quality Enables

Copyright 2005, AIT Group Inc. All rights reserved. 22

Precision + Accuracy + VOC Speed + Low Cost + Flexibility

• Six Sigma • Lean

Copyright 2005, AIT Group Inc. All rights reserved. 23

• Lean and Six Sigma can co-exist independently,

Copyright 2005, AIT Group Inc. All rights reserved. 24

• Six Sigma is the “Unifying Framework”

Copyright 2005, AIT Group Inc. All rights reserved. 25

Overall Yield vs. Sigma

1 93.32% 99.379% 99.9767 99.99966%

Six Sigma Improves Quality of Value Add Steps

Source: Six Sigma Research Institute, Motorola University, Motorola, Inc.

Define Measure Analyze Improve Control

Identify and Implement Quick Improvements