Six Sigma and Kaizen

1. Profit thru Quality
6σ & Ka iz en

3. KAIZEN-The Concept
 Kaizen….means improvement


Ongoing improvement
Involves everyone
 Both Managers & Workers
 Kaizen Philosophy
 Our way of life need to be constantly improved
 Working life, social life, home life
 Kaizen embodies





Productivity Improvement
Total Quality Culture
QC Circles
Zero Defects
…..etc.

4. KAIZEN-The Concept
Masaki Imai

5. KAIZEN-The Concept

6. KAIZEN
INNOVATION
KAIZEN-The Concept

7. 
KAIZEN-The Concept
Process OrientedApproach
 Leads to Improved Results
 Focus on the process improvement without loosing sight of the
expected results.
People Oriented Approach

 Focus on ….






Discipline
Time Management
Skill Development
Participation and Involvement
Morale
Communication

8. KAIZEN-The Practice
Management Group Individual
Tools Seven QC Tools
New Seven Tools
Professional Skills
Seven QC Tools
New Seven Tools
Common Sense
Seven QC Tools
Involves Managers and
Professionals
QC Circles Everyone
Target Systems and Process Group Work area Individual work area
Implementation
Cost
Small investment Mostly inexpensive Inexpensive
Results New System and
Facility improvement
Improved work
procedures
On the spot
improvement

9. 
KAIZEN-The Practice
Just In Time- Management Oriented Kaizen

 Exact number of required units brought to each successive stage
of production at the appropriate time
The advantage of JIT





Shortened Lead Time
Reduced time spent on non-process work
Reduced inventory
Better balance between processes
Problem clarification

10. 
KAIZEN-The Practice
Group Oriented Kaizen- SMALL GROUPACTIVTIES
 Informal, voluntary small groups, organized within the company
 Carry out specific improvement activities
 Many forms:-
 QC circles, Suggestion Groups, Workers group………
 QC Circles…the most famous


Emphasis on problem solving in the work area
Advantages of QCC





Sense of teamwork
Improved communication
Improved morale
Acquire new skills
Labor-Management relationship improved

11. 
KAIZEN-The Practice
Individual Oriented Kaizen- SUGGESTION SYSTEM



Individual provides suggestion on how to improve his work area.
Helps the individual to be Kaizen conscious.
Also helps in….



Workers to speak out.
Opportunity for management to help workers.
An valuable opportunity for two way communication
 Suggestions normally covers:-




Savings in energy, material and other resources
Improvement in working environment
Improvements in machines, processes, jigs and tools
Improvements in customer services

12. KAIZEN- Implementation
 Seven Conditions for Successful Implementation of
Kaizen Strategy





Top management commitment
Top management commitment
Top management commitment
Setting up an organization dedicated to promote Kaizen
Appointing the best available personnel to manage the Kaizen
process
Conducting training and education
Establishing a step-by-step process for Kaizen introduction.



14. Figure 2.2 Ideal pattern from innovation
Time
Figure 2.3 Actual pattern from innovation
Time

15. INNOVATION plus KAIZEN
KAIZEN
KAIZEN
INNOVATION
INNOVATION

16. KAIZEN and INNOVATION
KAIZEN INNOVATION
1. Effect Long-term and business as
usual
Short term and dramtic
2. Pace Small Steps Big Steps
3. Time frame Continuous and Incremental Intermittent and non-
4. Change Gradual and constant
incremental
Abrupt and volatile
5. Involvement Every-one Selected champions
6. Approach Collective group efforts,
systems approach
Individual ideas and efforts
7. Mode Maintenance and Improvement Scrap and Rebuild
8. Effort Orientation People Technology
9. Practical Requirements Little investment but great
efforts to maintain
Large investment but little effort
to maintain
10. Advantage Works well in slow growth
economy
Better suited in fast growth
economy

17. Another comparison of Innovation and KAIZEN
Innovation KAIZEN
Creativity
Individualism
Specialist-oriented
Attention to great leaps
Technology-oriented
Information: closed, proprietary
Functional (specialist) orientation
Seek new technology
Line + staff
Limited feedback
Adaptability
Teamwork (systems approach)
Generalist-oriented
Attention to details
people-oriented
Information: open, shared
Cross-functional orientation
Build on existing technology
Cross-functional organization
Comprehensive feedback

19. 
About Six Sigma
Six Sigma Was Developed at Motorola in the 1980’s As a
Method to Improve Process Quality.
It Was First Used to Improve Manufacturing Process
Capability and Then Migrated to Business Processes
Capability
Companies That Have Deployed Six Sigma: Bank of
America, Motorola, GE, IBM, Kodak and Many More
The Basic Premise Is, All Processes Have Variation.
Variation Is the Enemy.




20. profit thru quality
Six Sigma Philosophy
 Know What’s Important to the Customer (CTQ)
 Reduce Defects (DPMO)
 Center Around Target (Mean)
 Reduce Variation (Standard Deviation)
?
GE Company Proprietary
November 1998

21. •
SIX SIGMA-Definitions
Business Definition
 A break through strategy to significantly improve customer
satisfaction and shareholder value by reducing variability in every
aspect of business.
•
Technical Definition
 A statistical term signifying 3.4 defects per million opportunities.

22. SIX SIGMA-Definitions
 In brief, Six Sigma is a process control method
to improve the quality of products or services
in a continuous manner.
 This method uses six standard deviations of a normal
distribution as the limits of customers’ acceptance of
the system’s products.
 This method is applicable to manufacturing as well
as service industries.
 With six sigmas, only 3.4 defects per million are
allowed, or an acceptable level of 99.9997% is required





23. Six Sigma Performance
With 99 % Quality With Six Sigma
Quality
For every 300000 letters
delivered
3,000 misdeliveries 1 misdelivery
For every week of TV
broadcasting per channel
1.68 hours of dead air 1.8 seconds of dead air
Out of every 500,000
computer restarts
4100 crashes Less than 2 crashes
Source: The Six Sigma Way by Peter Pande and Others

24. Who is Implementing Six Sigma
 At least 25% of the fortune 200 claim to have a serious
six sigma program - Michael Hammer.
Financial - Bank of America, GE Capital, Electronics -
Allied Signal, Samsung, Sony

 Chemicals - Dupont, Dow Chemicals
 Manufacturing - GE Plastics, Johnson and Johnson,
Motorola, Nokia, Microsoft, Ford.
 Airline - Singapore, Lufthansa, Bombardier
 And hundreds of others in Americas, Europe, Sub
Continent.

25. Six Sigma Results
Company Annual Savings
General Electric $2.0+ billion
JP Morgan Chase *$1.5 billion (*since inception in 1998)
Motorola $ 16 billion (*since inception in 1980s)
Johnson & Johnson $500 million
Honeywell $600 million
Six Sigma Savings as % of revenue vary from 1.2 to 4.5 %
For $ 30 million/yr sales – Savings potential $ 360,000 to $ 1.35
million.
Investment: salary of in house experts, training, process redesign.

26. Key Concepts of Six Sigma
 At its core, Six Sigma revolves around a few key
concepts.





Critical to Quality: Attributes most important to the customer
Defect: Failing to deliver what the customer wants
Process Capability: What your process can deliver
Variation: What the customer sees and feels
Stable Operations: Ensuring consistent, predictable processes to
improve what the customer sees and feels
Design for Six Sigma: Designing to meet customer needs and
process capability


27. Dissecting Process Capability
Defects
Process Capability
Inadequate
Design
Margin
Inadequate
Process
Capability
Unstable Parts &
Materials
Defects Acceptable
 Premise of 6 Sources of variation can be:



Identified
Quantified
Eliminated or Controlled
LSL USL

28. Define
Control
Improve Analyze
Measure
Define the problem and customer
requirements.
Six Sigma Methodology
Measure defect rates and document
the process in its current incarnation.
Analyze process data and determine
the capability of the process.
Improve the process and remove
defect causes.
Control process performance and
ensure that defects do not recur.
“Common sense” doesn’t mean “commonly done” or when done, done well.

29. project
Six Sigma Methodology
characteristi
c.
hypothesis Final
solutions
Project Phases
Define Measure Analyze Improve Control
Identify,
evaluate and
select
projects for
improveme
nt
Set goals
Form teams.
Collect data
on size of
the selected
problem,
identify key
customer
requirement
s
,
Determine
key product
and process
Analyze
data,
establish
and confirm
the “vital few
“
determinant
s of the
performance
.
Validate
Improveme
nt strategy
Develop
ideas to
remove root
causes
Design and
carry out
experiment
s,
Optimize the
process.
Establish
standards to
maintain
process;
Design the
controls,
implement
and monitor.
Evaluate f
inancial
impact of the

30. 
What Makes Six Sigma Different?
Versatile
Breakthrough improvements
Financial results focus
Process focus
Structured & disciplined problem solving methodology using
scientific tools and techniques
Customer centered
Involvement of leadership is mandatory.
Training is mandatory;
Action learning (25% class room, 75 % application)
Creating a dedicated organisation for problem solving (85/50
Rule).










31. Benefits of Six Sigma






Generates sustained success
Sets performance goal for everyone
Enhances value for customers;
Accelerates rate of improvement;
Promotes learning across boundaries;
Executes strategic change

33. Six Sigma & Kaizen- The Difference
KAIZEN SIX SIGMA
Quality Improvement YES YES
Continuous Improvement YES YES
Approach Improve Existing System
Human Based
Improve Existing System
Statistical Method
Improvement Framework-
DMAIC
Implementation Simpler and Low cost Difficult and High Cost
RELIES UPON GROUP
DYNAMICS
FIXED PLAN OF
IMPLEMENTATION

34. 
S ix S ig m a
Western Origin Methodology (or Culture) Road Maps
K a i z en





Japanese Origin
Culture
Kaizen Umbrella
Continuous Improvement
Mistakes as Possibility for Improvement
Immediate Perfection
Reducing Variation and
Defects
Short-term Results
Possible
Prioritising Projects
Ensuring Profitability
Creation of Project
Teams
 Long-term Results



Every Possible Improvement
Providing Quality
Participation of Every Single Employee

35. Profit thru Quality