LSSGB - Lesson1 - Overview of Lean Six Sigma

Lean Six Sigma Green Belt
Lesson 1Overview of Lean Six Sigma
Copyright 2014, Simplilearn, All rights reserved.
Objectives
After completing
this lesson, you will
be able to:
Describe the basics of Six Sigma
Explain Lean principles in the organization
Explain Design for Six Sigma (DFSS)
Overview of Lean Six Sigma

Topic 1Six Sigma
Introduction to Six Sigma

Six Sigma is a highly disciplined process that focuses on
developing and delivering near-perfect products and
services consistently.
It is a continuous improvement process, with focus on:
change empowerment;
seamless training of resources; and
consistent top management support.
6
4
Process
A process is a series of steps designed to produce a product and/or service as required by the
customer.
Feedback from output helps in process control by suggesting changes to inputs.
Feedback
Inputs (x)
(Cause)
Input is something put into a process or expended
in its operation to achieve an output or a result.
Examples: Man, Material, Machine, Management
Process f(x)
Output (y)
(Effect)
Output is the final product delivered to an internal
or external customer.
Example: Product Services
Any process has inputs (x) and delivers outputs (y). Any change in the inputs causes change in the output.
Therefore y = f(x).
Process of Six Sigma

Six Sigma follows a process named DMAIC. It stands for Define, Measure, Analyze, Improve, and
Control.
Implement improvement action
plan and set up controls to
monitor the system.
Control
Define
Improve
Identify, prioritize, test, and

finalize the improvement action
plan.
Define the problem statement

and plan for improvement. Six
Sigma project team is formed.
Measure
Analyze
Collect data from the process to

determine current quality or
operational performance levels.
Study the business process to understand

the root causes of the problem.
List of DMAIC Tools

Following is a list of tools corresponding to the phase in which they are used.
Define
Measure
SIPOC
VOC
CTQ Tree
QFD
FMEA
CE Matrix
Project Charter
Analyze
Improve
Control
GAGE R and R
SLR
Brainstorming
Control Charts
Variables
Pareto Charts
Piloting and
Control Plan
Run Charts or Control
Fishbone Diagram
FMEA
MSA Re-
Charts
FMEA
Cp , Cpk , Sigma Level (Z
Multi-Vari
Level) and DPMO
Charts/Hypothesis
Anderson Darling Test
Tests
DOE (If
Analysis
needed)
Some of these tools can be interchangeably used between the phases.
How does Six Sigma Work

Six Sigma is successful because of the following reasons:
Management supports Six Sigma as a business strategy.
It uses DMAIC methodology for solving problems.
Well-defined projects that directly impact the organizations bottom line are selected.
It increases customer satisfaction and quality of product or service.
It requires extensive use of statistical methods.
Six Sigma Terms

The following are the key terms used in Six Sigma.
Term
Description
Sigma
The standard deviation of a process metric
Opportunity
Every chance for a process to deliver an output that is either Right or Wrong, as
per customer specifications
Defect
Every result of an opportunity that does not meet customer specifications and does
not fall within Upper Specification Limit (USL) and Lower Specification Limit (LSL)
Specification Limits
Limits set by a customer representing the range of variation the customer can tolerate
or accept
Rolled Throughput Yield

(RTY)
Measure of process efficiency expressed as percentage
Defects per Million

Opportunity (DPMO)
Also known as Non-Defect per Million Opportunities (NPMO), it is a measure of

process performance
Sigma Level Chart

The Six Sigma quality means 3.4 defects in one million opportunities or a process with 99.99966%
yield.
Sigma Process
Level ()
DPMO
RTY
697,672
30.2328%
308,537
69.1463%
66,807
93.3193%
6,210
99.3790%
233
99.97670%
3.4
99.99966%
10
Benefits of Six Sigma

The organizational benefits of Six Sigma are as follows:
Eliminates the root cause of problems and defects in a process
Creates robust products and services
Reduces process variation and waste
Ensures customer satisfaction
Provides process standardization
Reduces rework by getting it right the first time
Addresses the key business requirement
Helps gain competitive advantage
Achieves the organizational goals
11
Six Sigma and Quality

Taking a process to Six Sigma level ensures
that quality of the product is maintained,
with the primary goal being increased

profits.
Quality is technically defined as the degree

of excellence of a product or service and
conformance to customer requirement.
12
History of Six Sigma

The most important part in the history of Six Sigma is Motorola initiating Six Sigma for process
improvement and thereby reducing defects to negligible levels, and GE using Six Sigma to improve the
entire business system.

Allied Signal saves
$0.5 billion with the
use of Six Sigma
Motorolas Bill Smith

and Mikel Harry
start the Six Sigma
initiative
1986
1995
Jack Welch initiates
Six Sigma at GE to
improve the entire
business system
1998
Motorola saves $16

billion cumulatively
with the use of Six
Sigma
2000
2001
GE saves $2 billion
annually with the
use of Six Sigma
13
Six Sigma Team

There are a total of five levels in the Six Sigma Team.
Top Executives
They lead change and provide direction.

The top executives own the Six Sigma initiatives.
Six Sigma
Champions
They identify and scope projects, and develop strategy.

They also identify and coach Master Black Belts
Six Sigma Master

Black Belts
They train and coach Black Belts, Green Belts, and various
Functional Leaders of the organization.
Six Sigma Black

Belts
They apply strategies to specific projects, and lead and

direct teams to execute projects.
Six Sigma Green

Belts
They support the Black Belt employees by working on

the project and performing day-to-day jobs.
14

Topic 2Lean Principles
Overview of Lean
Lean refers to creating more value for customers with fewer resources.
It means reducing unwanted activities or process or anything that does not add value to the
product or service for the customer.
The Lean philosophy is To provide perfect value to the customer through a perfect value creation
process that has zero waste.
16
Benefits of Lean
Following are the benefits of Lean:
Lean reduces cost
It improves quality
Lean speeds the delivery by eliminating NVA
Lean is not restricted to manufacturing, it applies to every business and every process.
Lean is not a cost reduction program, but an approach to optimize end to end processes.
17
History of Lean
Some of the Lean principles were implemented a long time ago. The major implementations were
noticed in the following years:
Mostly in manufacturing industry, in various forms
like flow, interchangeable parts, automatic
assembly line, automatic defect detection, etc.
1450s
Toyota Production System, based on Fords original

thinking, was adopted at Toyota. It aimed at
improving end-to-end production system and
providing more value to customers.
1913
1930
Integration of Entire Production Process for the

Ford car Model T by Henry Ford. It was limited to
one color and one specification.
TPS shifted the focus from individual machines and their utilization, to the flow of the product through
the total end-to-end process.
It results in low cost, high variety, high quality, and rapid throughput times to meet customer desires.
18
Lean Six Sigma

Lean Six Sigma is the methodology that combines the best of both the Lean concepts and the Six
Sigma methodology and tools.
Lean and Six Sigma have some overlapping goals, to create the most efficient system.
Both take different approaches to achieve improvements and complement each others
methodology.
Lean Six Sigma is an approach to integrate the power of Six Sigma Methodology, its tools along with
the Lean concepts that can be applied within an organization.
For any Lean Six Sigma improvement project, it is often advantageous to begin with Lean to
streamline the processes and Rapid Improvement Events.
19
Lean vs. Six Sigma

Lean and Six Sigma methodologies are compared here.
Lean
Six Sigma
Focus is on Efficiency.
Focus is on Effectiveness.
Improvement principles focus on identifying

value, eliminating unnecessary steps and
wastes, and dramatically improving process
speed.
Encourages breakthrough in processes, designs,

while improvement teams focus on identifying
root cause, eliminating chronic problems, and
reducing variation in processes.
Lean is about moving mean, reducing cycle

time, reducing excess inventory, and improving
response time.
Six Sigma is about reducing variation, decreasing

defect rate, and increasing product yield.
20
Lean Concepts
Lean is a continuous process to eliminate or reduce non-value added activities (NVA) and waste from
a process. By doing so, Lean:
increases continuous flow in the process; and
minimizes stop-flow and unbalanced production.
Before applying Six Sigma to a process, it is important to:
check the waste status of the process; and
eliminate or reduce waste and NVAs, if present.
21
Lean ConceptsExample
The following example shows how Lean can be applied to a process to reduce waste.
Problem
A welding technician observes
that sometimes he has to
work with rusty components.
Traditional Solution
Use an oil coating, followed by a
cleaning process to prevent
problems during welding.
Lean Solution
Identify how to reduce inventory to
minimize waiting time for the steel
components and ensure rusting
does not occur.
22
Lean ConceptsProcess Issues

Lean focuses on the following three major issues in a process.
Non-value adding work
Muda
Three
issues in
Lean
Unevenness
Mura
Muri
Overburden
23
Seven Types of Waste

The following table lists the types of waste or Muda.
Type of Waste
Description
Overproduction
Producing more than what is required. Ex: Customer needed 10 products and you delivered 12.
Inventory
Also referred to as stock. Ex: Test scripts waiting to be executed by the testing team.
Defects/Repairs/Rejects
Any product or service deemed unusable by the customer or any effort to make it usable to the
original customer or a new customer. Ex: Errors found in the source code of a payroll module
by quality control team.
Motion
Waste generated due to poor workplace ergonomics. Ex: Finance and accounts team sit on the
first floor, but invoices to customers get printed on the ground floor causing unnecessary
personnel movement.
Over-processing
Additional process on a product or service to remove an unnecessary attribute or feature. Ex:

Customer needed a bottle and you delivered a bottle with extra plastic casing.
Waiting
Parts or people waiting for the next process or task. Ex: Improper scheduling of staff members.
Transport
Unnecessary movement of the product in the process, without adding value. Ex: A product is
finished, yet it travels 10 kilometers to warehouse before it gets shipped to the customer.
24
Other Lean Wastes

There are other areas of waste Lean experts may discuss:
Underutilized skills:
o
Below optimum use of workforce capabilities
Not assigning the right people for the right task
Underperforming processes:
o
Automation of a poorly performing process
Improving a process that should be eliminated
Asymmetry in processes that should be eliminated
25
Identifying the Waste TypeExamples

Some examples are given below for few types of wastes:
Inventory
Materials are airfreighted into a company
for the Materials
Requirement Planning
(MRP) deadline on the
first day of the month.
The materials then sit in
the warehouse for three
weeks before they are
used.
Defect or Reject
Payments from the
customer are not
received on time
because the customer
claims that the
information on the billof-lading, invoice, and
order do not match.
Over-processing
An inspector rejects
blemished parts
observed under a
microscope when the
specification allows for
blemishes not visible
from three feet away.
Overproduction
By the time the work-inprocess piles on the
shelves and carts reduce,
some assemblies, done
to a previous revision,
become unusable.
26
Lean Process
There are five steps in the process of lean implementation.
Value Stream
Mapping
Identify Value
Identify value from
customers
perspective
Perform value
stream mapping
Create Flow
Make the value
stream steps flow
Pull
Let the customer
pull products
Perfection
Seek perfection
27
Lean ProcessIdentify Value

To implement Lean to a process, it is necessary to:
Identify what the customer wants.
Understand what the process should have to meet customer requirements.
28
Lean ProcessValue Stream Mapping

Value stream mapping is a visualization tool to map the path and identify all activities involved in the
product or service. It helps to identify and eliminate or reduce non-value added activities (NVAs).
Any organizational activity can be classified into three types.
Value Added
Activities (VA)
Activities that add value to the process and for which customers are willing to
pay
Example: Printing
Non-Value Added
Activities (NVA)
Necessary, but
Non-Value Added
Activities
Activities which do not add value to the process and for which customers are
not willing to pay
Example: Delay in raw material procurement
Activities required for the process but which add no value to the customers
perceived value
Example: Quality check
29
Lean ProcessFlow, Pull, and Perfection

The Lean concepts of flow, pull, and perfection are described here.
Flow
There should be a
continuous flow of
products or services
through the business
system.
Any stop or reduction
in flow is a non-value
adding activity and
hence a waste.
Perfection
Pull
Products and services

are made as and
when there is
customer demand
and not based on an
estimated forecast.
This refers to the

complete elimination
of Muda or waste so
that all activities add
value.
30
Pull vs. Push

An organization can adopt either of these processes depending on the requirement:
Push
Pull
1. Forecast demand
2. Build stock
3. Wait for customers to buy
1. Get customer demand

2. Start production
3. Deliver to customer
Example: A garment company decides to

manufacture 200 shirts based on past forecasts. The
company makes 200 shirts and waits for the
customer to place the order.
Example: A garment company receives an order for

200 shirts, and then starts producing the shirts to
deliver to the customer.
Pull processes do not apply universally, with some situations being more suitable for Push.
Example: A pharmacy is more suited to a Push approach.
31
Theory of Constraints
Every process has a limiting constraint or bottleneck. The theory of constraints (TOC) is a tool to
remove or improve the constraint. The steps to apply the TOC methodology are as follows:
Identify the system's constraint. A
constraint limits the process from
achieving its goals.
Step 1
If a constraint has been resolved in Step
4, return to Step 1. Repeat the steps to
find the next constraint.
Step 2
Step 5
Step 3
Step 4
Decide how to exploit the system's

constraint. Decide how to improve the
constraint so that it works to its full
potential.
Subordinate the rest to the decisions of

Step 2. Align the whole process to
support the decisions made in the
previous step.
Elevate the system's constraint. Consider

further actions to resolve the constraint.
32
Theory of ConstraintsExample
Q
A
The three sub-processes in the packing process are coding or printing, filling, and sealing. The data for the 3
sub-processes are observed and collected as number of units produced in an hour.
Coding/Printing: 900 units/hr. Filling: 720 units/hr. Sealing: 780 units/hr.
How to implement TOC methodology?
Filling is the system

constraint
Assign repair and

maintenance labor
Step 1
Go back to Step 1 and
repeat the process
Step 2
Step 5
Step 3
Carry out maintenance

of the machine
Step 4
Remove the damages
33
Theory of ConstraintsExample (contd.)

Data (units/hour) before implementation:
Coding/Printing
Filling
Sealing
900
720
780
Coding/Printing
Filling
Sealing
900
840
780
Data (units/hour) after implementation:
34

Topic 3Design for Six Sigma
Design for Six Sigma

Design for Six Sigma (DFSS) ensures that a new product or service meets customer requirements and
a process is at Six Sigma level using tools such as QFD and FMEA. DFSS is used to:
introduce a new product or service or a new category of product or service;
improve a product or service; or
add to existing product or service lines.
Design new
Product/Service
Redesign existing
DFSS
Process for
Product/Service
Design new
Redesign existing
36
DFSS ToolsQuality Function Deployment

Quality Function Deployment (QFD) is a systematic process to understand customer needs and
convert them to a set of design and manufacturing requirements. QFD helps an organization to:
Prioritize
customer
needs
Which customer needs are most important?
Set targets
to meet
them
What are the strengths and weaknesses of the system and where should
efforts be focused?
In QFD, it is necessary to:
ask customers relevant questions and tabulate the data; and
identify the set of parameters critical to product design.
37
DFSS ToolsFailure Modes and Effects Analysis

Failure Modes and Effects Analysis (FMEA) is a preemptive tool that helps identify potential pitfalls at
all levels of a business system. FMEA helps to identify:
failure modes of a product or service and prioritize them;
possible effects of the failure on the customers; and
critical areas in a system.
A drawback of FMEA is that although it helps focus attention on critical areas in a system, it does not give
solutions to the identified problem.
38
PFMEA and DFMEA

PFMEA stands for Process Failure Mode Effects Analysis and DFMEA stands for Design Failure Mode
Effects Analysis.
PFMEA
Used on new or existing processes to uncover

potential failures
Is done in the quality planning phase to act as an
aid during production
Involves fabrication, assembly, transactions, or
services
DFMEA
Used in the design of a new product to uncover

potential failures
Aimed at identifying failure modes effects and
reducing them
Is done before product is sent to manufacturing
All significant design deficiencies would be
resolved at the end of this process
39
FMEA Risk Priority Number

FMEA Risk Priority Number (RPN) is a measure used to quantify or assess risk associated with a design
or process.
Assessing risk helps identify critical failure modes.
Higher the RPN, higher the priority the product or process receives.
RPN is calculated using Severity, Occurrence, and Detection (SOD), with each given a value on a
scale of 1 to 10.
RPN = Occurrence X Severity X Detectability
40
FMEA Table
The FMEA table helps in planning improvement initiatives by underlining why and how failure modes
occur and plan for their prevention.
Key
Potential
Process
Potential
Process Failure
Step
Failure Effects
Input
Mode
What is What is
the
the Key
process Process
step?
Input?
In what
ways
does the
Key Input
go
wrong?
What is the
impact on the
Key Output
Variables
(Customer
Requirements)
or internal
requirements?
SEV
Potential
Causes
How
severe is
the effect
to the
customer?
What
causes the
Key Input
to go
wrong?
OCC
Current Controls
DET
How often
does
cause or
FM occur?
What are the existing controls

and procedures (inspection
and test) that prevent the
cause or the Failure Mode?
Should include an SOP number.
How
well
can
you
detect
cause
or
FM?
RPN
0
0
41
RPN and Scale CriteriaSeverity

Severity is a measure of how critical the failure mode is to the customer or to the process. A high
severity rating indicates a mode is critical to operational safety. The rating can never be changed.
Effect
Hazardous without
warning
Severity of Effect
Very high severity ranking when a potential failure mode affects safe system operation without
warning
Rating
10
Hazardous with warning Very high severity ranking when a potential failure mode affects safe system operation with
warning
Very High
System inoperable with destructive failure without compromising safety
High
System inoperable with equipment damage
Moderate
System inoperable with minor damage
Low
System inoperable without damage
Very Low
System operable with significant degradation of performance
Minor
System operable with some degradation of performance
Very Minor
System operable with minimal interference
None
No effect
42
RPN and Scale CriteriaOccurrence

Occurrence is the probability that a specific cause will result in the particular failure mode. Higher the
occurrence of a failure, higher its rating.
Effect
Very High: Failure is almost inevitable due to
this cause
High: Repeated failures due to this cause
Moderate: Occasional failures due to this cause
Low: Relatively few failures due to this cause

Remote: Failure is unlikely due to this cause
Failure Probability
Rating
>1 in 2
10
1 in 3
1 in 8
1 in 20
1 in 80
1 in 400
1 in 2,000
1 in 15,000
1 in 150,000
<1 in 1,500,000
1
43
RPN and Scale CriteriaDetection

Detection is the probability that a particular failure will be found. If detection is impossible, the failure
is given a rating of 10. At the start of a Six Sigma project, the failure mode is given a relatively high
detection rating.
Detection
Likelihood of detection by Design or Process Control
Ranking
Absolute Uncertainty
Design /Process control cannot detect potential cause/mechanism and subsequent failure mode
10
Very Remote
Very remote chance the Design/Process control will detect potential cause/mechanism and subsequent failure mode
Remote
Remote chance the Design/Process control will detect potential cause/mechanism and subsequent failure mode
Very Low
Very low chance the Design/Process control will detect potential cause/mechanism and subsequent failure mode
Low
Low chance the Design/Process control will detect potential cause/mechanism and subsequent failure mode
Moderate
Moderate chance the Design/Process control will detect potential cause/mechanism and subsequent failure mode
Moderately High
Moderately high chance the Design/Process control will detect potential cause/mechanism and subsequent failure mode
High
High chance the Design/Process control will detect potential cause/mechanism and subsequent failure mode
Very High
Very high chance the Design/Process control will detect potential cause/mechanism and subsequent failure mode
Almost Certain
Design/Process control will detect potential cause/mechanism and subsequent failure mode
44
Example of FMEA and RPN

For the process of withdrawing cash from the ATM, the bank wants to recognize and prioritize the
risks involved.
FMEA Table
Process/
Potential
Product
Failure
Characteristi
Mode(s)
cs
Potential
Potential
Sev
Occ Current Design Det
Recommended
Effect(s) of
cause(s) of
RPN
(S)
(O)
Control
(D)
Action(s)
failure
failure
Customer
Cash
Extremely
account
withdrawal
unhappy 9
debited but
from ATM
customer
cash not paid
Nonavailability
7
of cash in
the ATM
Set minimum
limit warning
112
Increase the
set limit for
regularly or
often used
ATM
Responsibility
& Target
Completion
Date
Action Taken
Management
Minimum limit
increased
New
New
New New Det
Sev.
RPN
Occ (On) (Dn)
(Sn)
(RPNn)
32
54
9
Network
issue
None
405
Increase
network limit
Increased the
Technical and
limit and have
Management
load balancing
45
Quiz
QUIZ
1
An opportunity that does not meet customer specifications is called ____________.
a.
defect
b. non-specified object
c.
opportunity
d.
performance
47
QUIZ
1
An opportunity that does not meet customer specifications is called ____________.
a.
defect
b. non-specified object
c.
opportunity
d.
performance
Answer: a.
Explanation: Each unit has number of opportunities as per customer requirements. If an
opportunity does not meet customer specifications, it is called a defect.
Copyright 2012-2014,Simplilearn,All rights reserved
48
QUIZ
2
Quality Function Deployment (QFD) is a methodology for ______________.
a.
removing bugs from code
b. identifying and defining key customer requirements

c.
measuring the reliability of a software product
d.
training employees in quality issues
49
QUIZ
2
Quality Function Deployment (QFD) is a methodology for ______________.
a.
removing bugs from code
b. identifying and defining key customer requirements

c.
measuring the reliability of a software product
d.
training employees in quality issues
Answer: b.
Explanation: QFD is also called Voice of Customer and is used to identify customer
requirements.
50
QUIZ
3
For a process at five sigma level, how many opportunities lie outside the specification
limits?
a.
3.4
b. 99.9767
c.
233
d.
51
QUIZ
3
For a process at five sigma level, how many opportunities lie outside the specification
limits?
a.
3.4
b. 99.9767
c.
233
d.
Answer: c.
Explanation: A process at five sigma level is at 99.9767% yield. Out of 1 million
opportunities, the process has no defects 999767 times. Therefore, the number of defects =
1000000 999767 = 233 defects.
52
QUIZ
4
Defects, over-production, inventory, and motion are all examples of ___________.
a.
waste
b. limiting constraints
c.
noise
d.
value-added activities
53
QUIZ
4
Defects, over-production, inventory, and motion are all examples of ___________.
a.
waste
b. limiting constraints
c.
noise
d.
value-added activities
Answer: a.
Explanation: Defects, over-production, inventory, and motion are four of the seven wastes
mentioned in Lean.
54
QUIZ
5
The primary factor in the successful implementation of Six Sigma is to have

_____________.
a.
the necessary resources
b. the support or leadership of top management

c.
explicit customer requirements
d.
a comprehensive training program
55
QUIZ
5
The primary factor in the successful implementation of Six Sigma is to have

_____________.
a.
the necessary resources
b. the support or leadership of top management

c.
explicit customer requirements
d.
a comprehensive training program
Answer: b.
Explanation: Implementing Six Sigma requires change in the whole organization, and hence
support of top management is essential.
56
QUIZ
6
RPN is calculated by:
a.
Adding severity, occurrence, and detection
b. Adding severity and occurrence

c.
Multiplying severity and occurrence
d.
Product of severity, occurrence, and detection
57
QUIZ
6
RPN is calculated by:
a.
Adding severity, occurrence, and detection
b. Adding severity and occurrence

c.
Multiplying severity and occurrence
d.
Product of severity, occurrence, and detection
Answer: d.
Explanation: RPN is calculated by multiplying Severity, Occurrence, and Detection (SOD),
with each given a value on a scale of 1 to 10. RPN = Occurrence X Severity X Detectability.
58
QUIZ
7
The Toyota Production System was first implemented in:
a.
1450
b. 1913
c.
1930
d.
1998
59
QUIZ
7
The Toyota Production System was first implemented in:
a.
1450
b. 1913
c.
1930
d.
1998
Answer: c.
Explanation: The Toyota Production System was first implemented in the year 1930.
60
QUIZ
8
The primary focus of Lean is on:
a.
Efficiency
b. Effectiveness
c.
Production
d.
Quality
61
QUIZ
8
The primary focus of Lean is on:
a.
Efficiency
b. Effectiveness
c.
Production
d.
Quality
Answer: a.
Explanation: The primary focus of Lean is on Efficiency whereas Six Sigma focuses on
effectiveness.
62
Which of the following encourages breakthrough process, design, or improvement

teams focused on identifying root cause, eliminating chronic problems, and reducing
variation in processes?
QUIZ
9
a.
Lean Concepts
b. Six Sigma
c.
Lean Six Sigma
d.
Toyota Production System
63
Which of the following encourages breakthrough process, design, or improvement

teams focused on identifying root cause, eliminating chronic problems, and reducing
variation in processes?
QUIZ
9
a.
Lean Concepts
b. Six Sigma
c.
Lean Six Sigma
d.
Toyota Production System
Answer: b.
Explanation: Six Sigma encourages breakthrough process, design, or improvement teams
focused on identifying root cause, eliminating chronic problems, and reducing variation in
processes.
64
Summary
Here is a quick
recap of what we
have learned in this
lesson:
Six Sigma is a highly disciplined process that focuses on developing and

delivering near-perfect products and services consistently.
Lean refers to creating more value for customers with fewer resources.
Lean Six Sigma is the methodology that combines the best of both lean
concepts and Six Sigma methodology and tools.
DFSS ensures that a new product or service meets customer requirements

and that a process is at Six Sigma level using tools such as QFD and FMEA.
The FMEA table helps in planning improvement initiatives by underlining
why and how failure modes occur and planning for their prevention.
65
THANK YOU

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LSSGB - Lesson1 - Overview of Lean Six Sigma

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Lean Six Sigma Green Belt

Lesson 1Overview of Lean Six Sigma

Copyright 2014, Simplilearn, All rights reserved.

Copyright 2014, Simplilearn, All rights reserved.

Describe the basics of Six Sigma

Explain Lean principles in the organization

Explain Design for Six Sigma (DFSS)

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Overview of Lean Six Sigma

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Introduction to Six Sigma

seamless training of resources; and

consistent top management support.

Copyright 2014, Simplilearn, All rights reserved.

Copyright 2014, Simplilearn, All rights reserved.

Process of Six Sigma

Identify, prioritize, test, and

Define the problem statement

Collect data from the process to

Study the business process to understand

List of DMAIC Tools

Run Charts or Control

Cp , Cpk , Sigma Level (Z

Level) and DPMO

Anderson Darling Test

Some of these tools can be interchangeably used between the phases.

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How does Six Sigma Work

Management supports Six Sigma as a business strategy.

It uses DMAIC methodology for solving problems.

It increases customer satisfaction and quality of product or service.

It requires extensive use of statistical methods.

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Six Sigma Terms

The standard deviation of a process metric

Rolled Throughput Yield

Measure of process efficiency expressed as percentage

Defects per Million

Also known as Non-Defect per Million Opportunities (NPMO), it is a measure of

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Sigma Level Chart

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Benefits of Six Sigma

Eliminates the root cause of problems and defects in a process

Creates robust products and services

Reduces process variation and waste

Ensures customer satisfaction

Provides process standardization

Reduces rework by getting it right the first time

Addresses the key business requirement

Helps gain competitive advantage

Achieves the organizational goals

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Six Sigma and Quality

with the primary goal being increased

Quality is technically defined as the degree

conformance to customer requirement.

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History of Six Sigma

entire business system.

Motorolas Bill Smith

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Motorola saves $16