MBA - 601

Total Quality
Management
Module 17:
Lean SIX Sigma

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 Objectives
• Introduce the Lean Concept
• Recognize the Eight Wastes
• Present the SIX Sigma Definitions and Concept
• Identify the DMAIC Methodology
• Detect tools used in Define Phase
• Determine tools used in Measure Phase
• Recognize tools used in Analyze Phase
• Recognize tools used in Improve Phase
• Recognize tools used in Control Phase
• Pinpoint Quantitative and Qualitative Methods used in
Six Sigma

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 LEAN SIX SIGMA Video

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 Lean Six Sigma

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 LEAN
• Lean is a systematic method for the
elimination of waste from a process with the
goal of providing what is of value to the
customer.

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 LEAN
• Much of what constitutes Lean stems from tools
developed at Toyota while creating the Toyota
Production System.
• Although the Lean roots are in manufacturing
and production environments, it is widely
applied to transactional processes as well.

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 The 8 Wastes: “DOWNTIME”

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 Bahama Bistro

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 SIX SIGMA

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 SIGMA

• Sigma is the is the 18th letter of the Greek

alphabet:
– Upper-case is written as Σ

– Lower-case is written as σ
– lower-case in word-final position is written as ς

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 SIGMA
• A Greek Symbol used in statistics refers to
Statistical Deviation which is a measure of
Variation

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 Mean, Median, Mode and Range
• Mean: the average of all numbers and is
sometimes called the arithmetic mean. To
calculate mean, add together all of the
numbers in a set and then divide the sum by
the total count of numbers.
• Median: The statistical median is the middle
number in a sequence of numbers. In the
data center, means and medians are often
tracked over time to spot trends.

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 Mean, Median, Mode and Range
• Mode: The mode is the number that occurs
most often within a set of numbers. It is
possible to have two modes (bimodal), three
modes (trimodal) or more modes within larger
sets of numbers.
• Range: The range is the difference between
the highest and lowest values within a set of
numbers.

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 Six Sigma Foundation
• Six Sigma is a management philosophy
developed by engineer Bill Smith at Motorola
in 1986 that utilizes a set of tools and
techniques to improve business processes.

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 Six Sigma
• A six sigma process is one in which 99.99966%
of all opportunities to produce some feature
of a part are statistically expected to be free of
defects (3.4 defective features per million
opportunities).

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 Six Sigma Performance

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 Definition: Six Sigma
• Six Sigma is a disciplined, data-driven approach and methodology for
eliminating defects in any process:
– from manufacturing to transactional
– and from product to service.
• Six Sigma is driving toward six standard deviations between the mean and
the nearest specification limit.

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 Six Sigma Definition

• Six Sigma seeks to improve the quality of the output of a

process by:
– Identifying and removing the causes of defects
– Minimizing variability in manufacturing and business
processes.

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 Six Sigma Timeline

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 Example of Six Sigma Projects

• Each Six Sigma project carried out within an

organization follows a defined sequence of
steps and has specific value targets, for
example:

Reduce
Reduce Process Reduce Costs
Cycle Time Pollution

Increase
Customer Increase Profits
Satisfaction

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 Six Sigma
• Motorola set a goal of "six sigma" for all of its
manufacturing operations, and this goal
became a by-word for the management and
engineering practices used to achieve it.

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 Benefits of Six Sigma

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General Electrics Six Sigma Benefits 5 Times
of Investment

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Six Sigma Quality Management Methods
• It uses a set of quality management methods
and creates a special infrastructure of people
within the organization, who are experts in
these methods.

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 LSS Infrastructure Experts

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 Infrastructure People experts LSS

Champions:
Translate the company’s vision, mission, goals and metrics to create
an organizational deployment plan and identify individual projects.
Identify resources and remove roadblocks.

Master Black Belt:

Trains and coaches Black Belts and Green Belts.
Functions more at the Six Sigma program level by developing key metrics and the
strategic direction.
Acts as an organization’s Six Sigma technologist and internal consultant.

Black Belt:
Leads problem-solving projects. Trains and coaches project teams.

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 Infrastructure People experts LSS

Green Belt:
Assists with data collection and analysis for Black Belt projects.
Leads Green Belt projects or teams.

Yellow Belt:
Participates as a project team member.
Reviews process improvements that support the project.

White Belt:
Can work on local problem-solving teams that support overall projects,
but may not be part of a Six Sigma project team.
Understands basic Six Sigma concepts from an awareness perspective.

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 Six Sigma Methodologies
Six Sigma projects follow two project
methodologies inspired by Deming's Plan-Do-
Check-Act Cycle. These methodologies, composed
of five phases each, bear the acronyms DMAIC and
DMADV.
• DMAIC "duh-may-ick" is used for projects aimed
at improving an existing business process.
• DMADV "duh-mad-vee" is used for projects
aimed at creating new product or process
designs.

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 Tools for Definition

IPO Diagram SIPOC Flow Diagram CTQ Tree Project

(Input, Diagram (Critical To Charter
Process, (Supply, Input, Quality)
Output) Process,
Output,
Customer)

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 Tools for Measurement

Check Histograms Scatter Pareto Run Charts

Sheets Diagrams Charts

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 Tools for Measurement

Cause and Control Charts Flow Process Process

Effect Charts Capability
Diagrams Measurement
(Ishikawa
Fishbone)

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 Tools for Analysis

Process Mapping Regression Analysis SWOT Analysis PESTLE Analysis

The Five Whys TRIZ: Innovative Overall Equipment

Problem Solving Effectiveness

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 Tools for Improvement

Brainstorming Nominal Affinity Five S

Group Diagram
Technique

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 Tools for Improvement

SMED Mistake Value Force Mind

(Single Proofing Stream Field Mapping
Minute Mapping Analysis
Exchange Diagram
of Die)

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 Mind Map

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 Tools for Control

Gantt Chart Activity PDCA Cycle Earned Value Milestone

Network Management Tracker
Diagram Diagram

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 Quantitative Techniques
• DMAIC: Define, Measure, Analyse, Improve,
Control
• DFSS: Design for Six Sigma; OR; DMADV: Define,
Measure, Analyse, Design, Verify

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 Quantitative Techniques
• Failure Mode and Effects Analysis

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 Quantitative Techniques
• Statistical Process Control
• Quality Function Deployment
• Design of Experiments
• Monte Carlo technique

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 Qualitative Techniques
• Benchmarking
• The Balanced Scorecard
• Quality Management Systems
• Lean Thinking

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 Any Question

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