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1
What is Lean Six
Sigma?
Topic’s for Today’s Discussion
2
Why Lean Six Sigma?
3
What is Lean?
4
What is Six Sigma?
5
Types of Waste
© 2020 vogue all rights reserved
6
Measure of process
performance
Topic’s for Today’s Discussion
7
Methodologies in Six Sigma
8
Benefits of Lean
What is Lean Six Sigma?
6𝜎 6𝜎
Reduces waste through
simplification of a process
Reduces defects by
addressing issues quickly
Six Sigma is accelerated by LEAN
Problem Solving + Improving Processes
delivers greater results
LEAN SIX SIGMA LEAN SIX SIGMA
What is Lean Six Sigma?
Basics of Lean Six Sigma
Lean accelerates Six Sigma
✓ Increased revenue, reduced costs, and improved
collaboration
✓ Lean and Six Sigma complement each other
✓ Lean accelerates Six Sigma
Basics
✓ Comprehensive tool set to increase the speed and
effectiveness of any process
Why Lean Six Sigma?
Why Lean Six Sigma?
Helping the organization make more
money by improving customer value
and efficiency
Focusing on improving quality by
helping the organization to produce
products or services better, faster and
cheaper
What is Lean?
What is Lean?
What is Lean?
Activity Process Value Added
✓ Activity must transform the product/service
✓ Customer must be willing to pay for it
✓ It must be done correctly first time
Reduces process cycle time
Eliminates the chance
of defect generation
Improves product or Service
delivery time
Reduces inventory levels
LEAN helps in:
Optimize resources towards key
improvements among others
What is Six Sigma?
What is Six Sigma?
SIX SIGMA helps in:
✓ Reduces the amount of defective products or services
provided
✓ Results in increased revenue
✓ Results in greater customer satisfaction
Set of techniques and tools for Process Improvement
Here is an example to show how it works
Step-1 Step-2 Step-4 Step-1 Step-2
Step-3
Before After
Types of Waste
There are 8 types of waste (DOWNTIME)
Defects Overproduction Waiting
Non-utilized Talent Transportation Inventory
Motion Extra Processing
Measure of process
performance
Six Sigma Table with various
levels of Six Sigma.
Sigma Level DPMO Long Term Yield
2 308,537 69.15%
3 66,807 93.32%
4 6,210 99.38%
5 233 99.98%
6 3.4 99.99966%
How Six Sigma Applies to Business
Performance
−6𝜎 −5𝜎 −4𝜎 −3𝜎 −2𝜎 −1𝜎 1𝜎 2𝜎 3𝜎 4𝜎 5𝜎 6𝜎
6 Standard Deviations = Sigma Level
Mean
Process Average Upper LimitLower Limit
99.7%
95%
68%
Champion
Master Black Belt
Black Belt
Green Belt
Yellow Belt
White Belt
Six Sigma Certification Levels
Methodologies in
Six Sigma
Methodologies in Six Sigma
DMAIC DMADV
Define
Measure
Analyze
Improve
Control
Define
Measure
Analyze
Design
Verify
DMAIC
Define Define the problem statement
Map the current process, gather data, identify and
understands the root cause of the problemMeasure
Analyze Analyze the data & the process to reduce the defect
& wastes of the existing process
Improve Work on the defects by using the improvement ideas
Control Document how the process improvements will be
passed on
DMADV
Define Project goals & deliverables are defined
Measure the factors that are critical to its deliverableMeasure
Analyze Analyze different process options that will best meet
the required deliverables
Design Document the detailed process that meets the
deliverables
Verify Verify that the goals & deliverables are achieved
through the newly designed process
Benefits of Lean
Lean Benefit: Increases Revenue
Loans processed per month Loans processed per month
Before Lean After Lean
Home Loans Revenue Home Loans Revenue
Before processes were improved, 200
loans were successfully funded per month.
Inefficient process = less revenue
After processes were improved, 600 loans
were successfully funded per month.
More funded applications = more revenue
Lean Benefit: Decreases Costs
Computers on Assembly Line Computers on Assembly Line
Before Lean After Lean
Computers
Assembled
Cost due
to defects
Before processes were improved,
2 out of 4 computers had broken screens.
More defects = Increased costs
After processes were improved,
No computers had broken screens.
Less Defects = Decreased costs
Computers
Assembled
Cost due
to defects
Lean Benefit: Increases Efficiency
Patients Seen Per Doctor Patients Seen Per Doctor
Before Lean After Lean
1 Doctor
Satisfied
Patients
After processes were improved.
1 doctor could see 9 patients successfully.
Increased efficiency =
More successful patient visits
1 Doctor
Satisfied
Patients
Before processes were improved.
1 doctor could only see 4 patients successfully.
Decreased efficiency =
less successful patient visits.
Become a Lean IT Foundation
Certified Professional
ENROLL NOW
Visit us here:
https://www.invensislearning.com/

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What is Lean Six Sigma? Lean Six Sigma Explained - Invensis Learning

  • 1.
  • 2. © 2020 vogue all rights reserved 1 What is Lean Six Sigma? Topic’s for Today’s Discussion 2 Why Lean Six Sigma? 3 What is Lean? 4 What is Six Sigma? 5 Types of Waste
  • 3. © 2020 vogue all rights reserved 6 Measure of process performance Topic’s for Today’s Discussion 7 Methodologies in Six Sigma 8 Benefits of Lean
  • 4. What is Lean Six Sigma?
  • 5. 6𝜎 6𝜎 Reduces waste through simplification of a process Reduces defects by addressing issues quickly Six Sigma is accelerated by LEAN Problem Solving + Improving Processes delivers greater results LEAN SIX SIGMA LEAN SIX SIGMA What is Lean Six Sigma?
  • 6. Basics of Lean Six Sigma Lean accelerates Six Sigma ✓ Increased revenue, reduced costs, and improved collaboration ✓ Lean and Six Sigma complement each other ✓ Lean accelerates Six Sigma Basics ✓ Comprehensive tool set to increase the speed and effectiveness of any process
  • 7. Why Lean Six Sigma?
  • 8. Why Lean Six Sigma? Helping the organization make more money by improving customer value and efficiency Focusing on improving quality by helping the organization to produce products or services better, faster and cheaper
  • 11. What is Lean? Activity Process Value Added ✓ Activity must transform the product/service ✓ Customer must be willing to pay for it ✓ It must be done correctly first time
  • 12. Reduces process cycle time Eliminates the chance of defect generation Improves product or Service delivery time Reduces inventory levels LEAN helps in: Optimize resources towards key improvements among others
  • 13.
  • 14. What is Six Sigma?
  • 15. What is Six Sigma? SIX SIGMA helps in: ✓ Reduces the amount of defective products or services provided ✓ Results in increased revenue ✓ Results in greater customer satisfaction Set of techniques and tools for Process Improvement
  • 16. Here is an example to show how it works Step-1 Step-2 Step-4 Step-1 Step-2 Step-3 Before After
  • 18. There are 8 types of waste (DOWNTIME) Defects Overproduction Waiting Non-utilized Talent Transportation Inventory Motion Extra Processing
  • 20. Six Sigma Table with various levels of Six Sigma. Sigma Level DPMO Long Term Yield 2 308,537 69.15% 3 66,807 93.32% 4 6,210 99.38% 5 233 99.98% 6 3.4 99.99966%
  • 21. How Six Sigma Applies to Business Performance −6𝜎 −5𝜎 −4𝜎 −3𝜎 −2𝜎 −1𝜎 1𝜎 2𝜎 3𝜎 4𝜎 5𝜎 6𝜎 6 Standard Deviations = Sigma Level Mean Process Average Upper LimitLower Limit 99.7% 95% 68%
  • 22. Champion Master Black Belt Black Belt Green Belt Yellow Belt White Belt Six Sigma Certification Levels
  • 24. Methodologies in Six Sigma DMAIC DMADV Define Measure Analyze Improve Control Define Measure Analyze Design Verify
  • 25. DMAIC Define Define the problem statement Map the current process, gather data, identify and understands the root cause of the problemMeasure Analyze Analyze the data & the process to reduce the defect & wastes of the existing process Improve Work on the defects by using the improvement ideas Control Document how the process improvements will be passed on
  • 26. DMADV Define Project goals & deliverables are defined Measure the factors that are critical to its deliverableMeasure Analyze Analyze different process options that will best meet the required deliverables Design Document the detailed process that meets the deliverables Verify Verify that the goals & deliverables are achieved through the newly designed process
  • 28. Lean Benefit: Increases Revenue Loans processed per month Loans processed per month Before Lean After Lean Home Loans Revenue Home Loans Revenue Before processes were improved, 200 loans were successfully funded per month. Inefficient process = less revenue After processes were improved, 600 loans were successfully funded per month. More funded applications = more revenue
  • 29. Lean Benefit: Decreases Costs Computers on Assembly Line Computers on Assembly Line Before Lean After Lean Computers Assembled Cost due to defects Before processes were improved, 2 out of 4 computers had broken screens. More defects = Increased costs After processes were improved, No computers had broken screens. Less Defects = Decreased costs Computers Assembled Cost due to defects
  • 30. Lean Benefit: Increases Efficiency Patients Seen Per Doctor Patients Seen Per Doctor Before Lean After Lean 1 Doctor Satisfied Patients After processes were improved. 1 doctor could see 9 patients successfully. Increased efficiency = More successful patient visits 1 Doctor Satisfied Patients Before processes were improved. 1 doctor could only see 4 patients successfully. Decreased efficiency = less successful patient visits.
  • 31. Become a Lean IT Foundation Certified Professional ENROLL NOW Visit us here: https://www.invensislearning.com/