Lean Six

Sigma

Lean Six Sigma

History of Six Sigma

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Six Sigma History Lean Six
Sigma

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

 Six Sigma History Lean Six
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

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 Six Sigma History Lean Six
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”

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 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

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 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

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 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

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 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”

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 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

• The AIT Group, Inc.

Steven Bonacorsi, Vice President
Lean Six Sigma Master Black Belt
3135 South Price Road, Suite 115
Chandler, AZ 85248-3549
Phone: +(1) 888.826.2484
E-mail: info@theaitgroup.com
Web: http://www.theaitgroup.com

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

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 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 satisfaction
individual that recognized extremely early in the through the integrated application of:
industry how well Lean, Six Sigma and Supply
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 AIT Group excels in implementation … not recommendation!

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