This document discusses principles of Lean Six Sigma and continuous improvement. It discusses that there is always more waste to eliminate and problems should be solved permanently through root cause analysis. People should learn and exercise creativity, while making objectives visible. Toyota continuously improves by eliminating waste and receives over 100 improvement ideas per employee each year. The document defines what makes a perfect process in terms of being valuable, capable, available, adequate and flexible. It discusses the concepts of value-added vs. non-value added work and the eight types of waste: overproduction, excess inventory, unnecessary processing, unnecessary motion, defects, waiting, transportation and unutilized skills.

1. 1
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Lean Six Sigma Training
Part 6

2. 2
Perfection
Principle 5
 There is always more waste, you are never completely lean.
 Use root cause analysis to solve problems promptly and
permanently.
 People learn and exercise more creativity
 Make objectives visible
Continuous improvement never stops
Toyota
…is eliminating wastes for more than 50 years.
Still it gets several million improvement ideas each year.
That’s more than a hundred improvement ideas from
each employee.
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3. 3
 Is the step Valuable…Would customer be equally happy if the step could be
left out?
 Is the step Capable…Can it be conducted with the exact same result every
time? (Six Sigma Focus)
 Is the step Available…Can it be performed whenever it is needed?
 Is the step Adequate…Is there capacity to perform it exactly when the value
stream requires it?
 Is the step Flexible…Can it shift quickly between different products or
service requirement?
 Does the product Flow from one step to the next with no delay?
The Perfect Process
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4. 4
Observe that 2 Things are ALWAYS Happening. . .
Things that should be done
Things that should not be done WASTE
WORK
Understanding & Eliminating Waste
“It” either adds value or it does not
Time
After
Before
Value Added Work
Non Value Added Work
Time
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5. 5
Typical Operation: 1-10% of the activities are value adding
• Any activity that absorbs resources but adds no value is a Waste
• MUDA is a Japanese word, which stands for “Waste”
• Activities that add no value, add cost and time
• Waste is a Symptom; need to find root causes and eliminate them
• Waste points to problems within the system
MUDA Overview
•Value( Designing a part / Assembling anEngine)
• PureWaste
( Rework, Missing Information)
• Incidental work
( Export Control)
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6. 6
3 Ms
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7. 7
8 Wastes
WASTE
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8. 8
Classification: GE Internal
Add NO value - Only serve to raise costs
Eight Types
1. Over-production
2. Excess Inventory
3. Unnecessary Processing
4. Unnecessary Motion
5. Defects
6. Waiting
7. Transportation & Conveyance
8. Unutilized Skills [New]/Intellect
Muda = Waste
Waste Exists In Every Process…Eliminate It
PEOPLE
TYPES
OF
WASTE
Unnecessary
Processing
Unnecessary
Motion
Waiting
Defects
Over-
ProductionTransportation
Excess
Inventory
QUALITY
QUANTITY
Unutilized
Skills (New)

9. 9
1. Over-Production
• Consumes valuable resources not immediately needed.
• Hides other process problems (bad quality, poor scheduling, poor
delivery).
• Builds inventory not needed.
• Examples:
– Takes up floor space
– Working on the wrong priority work
– Generating more information (reports,
paper) than can be processed
– Post processing more data than required
– Generating more documentation than needed
Produce or order only what, when and in the quantity needed
Extra
Slides
Definition:
Producing more than needed (batch processing)
Producing faster than needed
Duplication of effort
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10. 10
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