1. What is
Lean Six Sigma?
The origins of Lean and Six Sigma,
1.
2. What makes Lean Six Sigma effective,
3. How organizations are implementing it,
Some keys to success.
4.
Tedd Snyder
MAQIN Lean and Six Sigma BB
www.albanyanalytical.com
February 22, 2006
tsnyder@albanyanalytical.com

2. My Background
Education: B.S.I.E.- UW-Madison,
M.B.A.-Rensselaer Polytechnic Institute
More Education: Dr’s Deming, Juran, Kano, Kondo, Wheeler,
Box, Joiner, and Ermer
Experience: Florida Power & Light-Japanese TQC, Deming Prize
American Family - Deming Approach
Wisconsin MEP – Lean
The George Group – Lean Six Sigma
WFA – Performance Excellence
Certifications: ASQ Certified Quality Engineer - 1991
FPL Statistical Application Expert (Black Belt) -1991

3. What is Lean Six Sigma?
History of Lean Production
and Six Sigma
Tedd Snyder
MAQIN Lean and Six Sigma BB
www.albanyanalytical.com
February 22, 2006
tsnyder@albanyanalytical.com

4. Where did Lean Production come
from?
 Which company do many people credit with
mastering Lean Production?
 Where did they learn about Lean Production?

5. Henry Ford
Driven by Return on Capital (ROIC) and Low
Cost
“The time element in manufacturing
stretches from the moment raw
material is separated from the earth
to the moment when finished product
is delivered to the ultimate consumer.
Ordinarily, money put into inventory
is thought of as live money,...but it is
waste – which like every other form
of waste, turns up in high prices. We
“Our production cycle is 33 hoursdo not own or use a single warehouse!
from iron ore to an automobile,
compared to 12 days which we Time waste differs from material
thought record breaking.” waste because there can be no
salvage.”

6. Sakichi Toyoda-The father of Toyota
1894 - Sakichi Toyoda, a tinkerer
and inventor, begins making
manual weaving looms in Japan.
 1926 – Mr. Toyoda opens Toyoda Automatic
Loom Works. He later invents looms that stop
automatically when thread breaks (mistake-
proofing).

7. Kiichiro Toyoda
opens Toyota Motor Company in 1937.
“Unless we establish a
method far superior to Ford’s,
we will never beat Ford.quot;

8. Taiichi Ohno (Toyota, 1950-1990)
Father of the Toyota Production System
 Created Toyota Production System (TPS) in about
1950. TPS is the origin of Just-In-Time and Lean
Production movements in U.S. and around the
world.

9. Basics of Lean (Muda, Mura, Muri)
Focused on eliminating waste (Muda):
1. Transportation (moving material/product/information from one place to
another)
2. Inventory (material/product/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 (making, finding, and correcting mistakes)
 Another waste is: People (untapped, under utilized and/or misused resources)
Also focuses on removing Uneveness (Mura) and
Overexertion (Muri)

10. Lean Tools and Techniques
Standard Work-How, How long, Work flow/layout improvement
 
How much WIP to reduce non-value add
transportation
Value Analysis

Process Balancing to identify time

Value stream mapping for

traps, balance workloads, and
opportunity identification
increase throughput
5S housekeeping to improve

Mistake-Proofing to eliminate

productivity and develop a
rework through mistake-proofing
“disciplined approach”
(defect detection and prevention)
Pull Systems to increase speed

Queue Reduction for productivity

and flexibility
improvement
Rapid Changeover for flexibility

and responsiveness

11. 5S
(Seiri, Seiton, Seiso, Seiketsu, Shitsuke)
Sort
Set in Order
Shine
Standardize
Sustain

12. Where did Six Sigma come from?
 Which company made Six Sigma famous?
 What company created Six Sigma?

13. What Is Six Sigma?
 The term “Sigma” is a Greek letter (σ) used in statistics to describe
variability.
Effects of 1.5 Standard
Centered Normal Distribution +/-6 Sigma Limits
Deviation Shift
LSL Normal Distribution Centered USL
LSL Normal Distribution Shifted USL
-6σ -3σ -2σ -1σ x +1σ +2σ +3σ +6σ -6σ -3σ -2σ -1σ x +1σ +2σ +3σ +6σ
Spec Limit Percent Defect. PPM Spec Limit Percent Defect. PPM
+/-1 sigma 68.27 317,300 +/-1 sigma 30.23 697,700
+/-2 sigma 95.45 45,500 +/-2 sigma 69.13 308,700
+/-3 sigma 99.73 2,700 +/-3 sigma 93.32 66,810
+/-4 sigma 99.9937 63 +/-4 sigma 99.3790 6,210
+/-5 sigma 99.999943 0.57 +/-5 sigma 99.97670 233
+/-6 sigma 99.9999998 0.002 +/-6 sigma 99.9996600 3.4
Sigma Quality Level is an indicator of how often defects are likely to occur (Six Sigma

Quality Level is said to equate to 3.4 PPM defective).

14. How Complex Are Your Products and Services?
(% Shippable without Rework)
# 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

15. In Six Sigma, Costs Are Always
Kept in Mind
 There is an optimum quality level beyond which
the costs of quality improvement exceed the
expected cost savings from a reduced number of
defects. Impact of Quality Level on Cost
Cost
Optimum
Sigma Quality Level

16. Six Sigma History
 Nobody at GE gets promoted without Six Sigma
training.
 GE annual reports states that Six Sigma delivered:
$300 million to its operating income in 1997

$750 million to the bottom line in 1998

 Additional 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”

17. What is Lean Six Sigma
What makes Lean Six Sigma so
effective?
Tedd Snyder
MAQIN Lean and Six Sigma BB
www.albanyanalytical.com
February 22, 2006
tsnyder@albanyanalytical.com

18. The marriage of Lean and 6 Sigma
One lens to look for waste and another to look for
variation allows us to increase speed and reduce
“defects.” These improvements interact to further
increase customer satisfaction.

19. D-M-A-I-C - a structured approach to
problem solving/process analysis
 Define the Problem and its impact on the
Organization
 Measure the Current Performance
 Analyze the Performance to identify Causes
of this Performance
 Improve the Problem by attacking its Causes
 Control the Improved Process to Maintain the
Gains.

20. Infrastructure- Belts, Sponsors,
Champions
 A Black Belt is:  A Sponsor is:
Project Manager the owner of the project
 
Team Leader supportive of the team’s
 
needs
Problem Solver

the decision maker at

Statistical Whiz

Gate Reviews
regularly updated by the

 Like a martial arts black belt
Belt
they are elegant. They use
a coach

the minimum force to
achieve their objective.
 Green Belts are part time.  A Champion
They use the many of the Leads department

same skills but have a performance
smaller toolbox than Black improvement
Belts and thus smaller Prioritizes projects

projects.

21. Kaizen Events or “Blitzes” effect rapid
impact/changes and create “a bias for action”
Mon, Sep 9 Tue, Sep 10 Wed, Sep 11 Thu, Sep 12 Fri, Sep 13
7:00 AM Review plan for the day Review plan for the day Review plan for the day Review plan for the day
7:30 AM
8:00 AM
Area Observations
8:30 AM
Continue
9:00 AM
Continue
Brainsorm Solutions implementation
9:30 AM
implementation
Prepare presentation
10:00 AM Guest Speaker, Intro &
10:30 AM Training
Area Observations
11:00 AM
11:30 AM
12:00 PM Lunch Lunch & status review Lunch & status review Lunch & status review Lunch & status review
12:30 PM
1:00 PM Problems seen Affinitize list of possible Presentation &
Define & assign roles
1:30 PM Fishbone diagram solutions Questions
Area Discovery
2:00 PM Complete Effort / Impact
Continue
2:30 PM Matrix
implementation
3:00 PM Assign Action Items
Cause & effect Prepare presentation
3:30 PM
Area Discovery
4:00 PM
Begin Implementation
4:30 PM
5:00 PM Capture observations &
ideas Status review & updates Status review & updates Status review & updates
5:30 PM
6:00 PM Time to go home Time to go home Time to go home Time to go home

22. Following the process…
 Project Identification and prioritization
 Creating a project hopper
 Project Scoping
 Four months seems to be key
 Don’t have to fix entire problem, but make it better
 Focused, disciplined execution of DMAIC
 Little’s Law says to use full time BB’s so you can get to
the money faster (kaizen events vs traditional projects)
 Trust the process but only use tools as needed
 Gate Reviews
 Keeps the team on track
 Keeps the stakeholders committed
 Control and Replication

23. But its not just the process, it’s the
people.
 Like Sakichi Toyoda, be a tinkerer and
inventor:
Passion for improvement

Curious

Patient

Practical

Analytical

Creative

Bias for action

Learns from the world around him/her


24. What is Lean Six Sigma
How to Implement
Tedd Snyder
MAQIN Lean and Six Sigma BB
www.albanyanalytical.com
February 22, 2006
tsnyder@albanyanalytical.com

25. Broad Based Program
 Create Burning Platform
 Leadership work
Commit, Communicate, Care for

 Project identification and Prioritization
Train Black Belts and Sponsors

Coach Black Belts and Sponsors

Show me the money

More training and coaching (Black, Green, others)


26. Project Based Implementation
Leadership education and commitment

Project Selection

Project Initiation Workshops (Define/Measure)

BB Coaching and Mentoring

Show me the money

Replicate and Grow


27. What is Lean Six Sigma?
Some Keys to Success
Tedd Snyder
MAQIN Lean and Six Sigma BB
www.albanyanalytical.com
February 22, 2006
tsnyder@albanyanalytical.com

28. Lesson Learned #1
 Inventor Charles Kettering said “A problem
well defined is a problem half solved.”
 It helps to think of the Belt as a well paid
consultant brought in to solve a problem.
Would you bring the consultant in before you
had clearly defined the problem you wanted
them to solve?

29. Lesson Learned #2
 You may not be able to eat the elephant in one bite.
 One of the keys to scoping a project is to make it
executable. It’s often better to scope a project to look
at one location and then replicate what is applicable
rather than seeking a global solution.
 The whole gap in performance may not be closeable
with just one project. Americans are bad at this. We
see problems to be “fixed” not processes to be made
better.

30. Lesson Learned #3
 There is an improvement hierarchy:
Just Do it

Workout (Just Do It in a group)

Kaizen Event

Green Belt Project

Black Belt DMAIC Project

Black Belt DMEDI Project


31. Lesson Learned #4
Not every “Project” is a DMAIC/DMEDI project.
Cause
Known Unknown
Unknown
Complex Issues DMAIC Issues
Do “I” and “C” Use DMAIC
Solution
Simple Issues Be Careful Issues
Known
Ask “What cause
does this solution
“Just do it”
address?”
But make sure that your REALLY know.

32. Lesson Learned #5
You don’t need to be a statistician to be a
successful Black or Green Belt.
First think practically, then graphically, then
statistically.
Over 90% of problems can be solved without
advanced statistical methods.

33. Lesson Learned # 6
 The best question a Sponsor can ask is…
“How do you know?”
 The best answer that a Belt can give is…
“The data shows…”

34. Lesson Learned #7
The soft stuff is the hard stuff
 Well more than half a Black Belt’s time is
spent dealing with the people/organizational
issues, and not learning about DMAIC or
problem solving tools.

35. In Closing…
“We place the highest value on actual
implementation and taking action.”
Fujio Cho
President,
Toyota Motor
Corporation
2002

36. Questions
????

37. Practice
 Treat TIM WOOD like Waldo. Find him!
 Try 5S on your office, work area, or computer
(desktop or email).
Try the Ohno Circle. Observe something deeply.

Translate an idea into action.

Find something needing improvement and improve it.

Try using DMAIC (with data) on a simple problem.

Ask yourself “How do you know?”

Plan a simple project (hours/days), and execute it as

planned, learn from the experience.
Learn or remember basic statistics…..OR


38. For Further Learning
 The Toyota Way by Jeffrey K. Liker
 The Toyota Way Fieldbook by Jeffery K. Liker and
David Meier
What Is Lean Six Sigma by Michael George, David

Rowlands, Bill Kastle
Lean Six Sigma by Michael George

Lean Six Sigma for Service: How to Use Lean

Speed and Six Sigma Quality to Improve Services
and Transactions by Michael George
The Lean Six Sigma Pocket Toolbook: A Quick

Reference Guide to 70 Tools
for Improving Quality and Speed by Michael
George, John Maxey, David Rowlands, Mark Price

39. For more in depth learning
 Join the MAQIN Lean Six Sigma Special Interest
Group. We meet every other month on the third
Wednesday.
Topic: Project Management
Presenter: Dennis Verstegen
Verstegen and Associates
When: Wednesday, March 15th, 3:30-5:30
Where: MAQIN Training Room
 Join the Best Practices Network of SE Wisconsin.
Contact Dave Prins (dprins@execpc.com) for
information on their next meeting.