...Juan A. Rodriguez LEAN & SIX SIGMA PROC 5000 May 9, 2013 Outline I. Introduction II. History of Lean and Six Sigma III. Lean Sigma IV. Six Sigma V. How Lean and Six Sigma are applied VI. Summary VII. Recommendation VIII. Conclusion Introduction: As our economic future hinges on the ability for organizations to cut cost and improve the quality of their products and services as well as develop new ideas in order to stay competitive, managers today still rely on concepts that stay constant throughout the years, those concepts are Six and Lean Sigma. These concepts are widely used by many organizations as an approach or a process for investigation to achieve better results and improvement in their daily operations, services and products. Throughout this research paper the focus will be centered on the history of Six and Lean Sigma, how both concepts helped revolutionize the fields of quality control and process management, Lean and Six Sigma’s emphasis on collective efforts and teamwork to the applied steps taken. Furthermore, the research paper will provide tables and examples of how both concepts are applied to organizations. History of Lean and Six Sigma: The origins of Six Sigma can be traced as far back as 1777 when Carl Frederick Gauss first introduced the concept as a measurement tool of the normal curve. In the 1920's the word 'sigma' was used by mathematicians and engineers as a symbol for a unit of measurement in product...
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...1 Lean Six Sigma Experience in Companies Narek Danoyan Contents 1.1 Lean Six Sigma in Xerox . . . . . . . . . . . . . . . . . . . . . 1.2 Lean Six Sigma in Caterpillar . . . . . . . . . . . . . . . . . . 1.3 Lean Six Sigma in General Electric . . . . . . . . . . . . . . . 1.4 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.5 Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 4 5 6 7 1 2 CHAPTER 1. LEAN SIX SIGMA EXPERIENCE IN COMPANIES Abstract: During the recent years the Lean Six Sigma improvement methodology has found its wide usage in different high-profit companies. Among such companies are General Electric, Raytheon, Caterpillar, ITT, Solectron, etc. The following article provides information on the Lean Six Sigma implemtations in three such companies, namely Xerox, Caterpillar and General Electric. 1.1 Lean Six Sigma in Xerox Xerox company profile Industry: document services, digital imaging, computer peripherals Number of employees: 133,200(2010) Total assets: US$ 24 billion Prior improvement methodologies used in Xerox and reasons for switching to LSS. Though the earlier approaches assisted Xerox in improving business processes, Xerox had some deficiencies and the results were limited in scope. In 2002 company decided to adopt the integration of Six Sigma and Lean Manufacturing, which in a short time helped to achieve significant improvements[2]. Figure 1.1: Xerox LSS Framework[2] 1.1. LEAN SIX SIGMA...
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...Introduction In race to be a leader, most companies are realizing that traditional management, manufacturing processes, and other orthodox approaches, are not enough. More effective methods are needed: • Lean Manufacturing • Six Sigma Lean “Lean is a way to specify value, line up value-creating actions in the best sequence, conduct those activities without interruption whenever someone requests them, and perform them more and more effectively. In short, lean thinking is lean because it provides a way to do more and more with less and less – less human effort, less human equipment, less time, and less space – while coming closer and closer to providing customers with exactly what they want.”- Womack and Jones (1996). “Becoming ‘lean’ is a process of eliminating waste with the goal of creating value.” – Womack & Jones There are FIVE overriding principles to Lean. Identify Customers and Specify Value - The starting point is to recognise that only a small fraction of the total time and effort in any organisation actually adds value for the end customer. By clearly defining Value for a specific product or service from the end customer’s perspective, all the non value activities - or waste - can be targeted for removal. Identify and Map the Value Stream – The Value Stream is the entire set of activities across all parts of the organisation involved in jointly delivering the product or service. This represents the end-to-end process that delivers the value to the...
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...Six Sigma, Lean, and Kaizen J. Paul Seiberlich Siena Heights University Prof. Anderson February 5, 2015 Kaizen and Six Sigma are associated with the Quality Model for achieving success in business. The term Kaizen has many different uses ranging from referring to a principle of personal conduct to a company wide strategy for achieving business success (Imai, 1986). In the United States, one of its most common uses is as the name of a lean enterprise tool for improving work processes. In this use, it refers to a systematic and specialized application of problem solving to uncover and extract waste from a work process. Kaizen as a company wide strategy for achieving business success is derived from the writings of W. Edwards Deming although the completeness of that connection seems to be unrecognized. It abstracts from Deming’s work the ideas that improvements must benefit customers; that they must occur every day, everywhere, and be implemented by everyone; that management must lead the implementation and that managers must be models and agents of its adoption; and that management and non-management employees must operate cooperatively. (Vitalo, R. 2013) The term “Kaizen” has two uses. One use refers to the principle of continuous improvement and describes a fundamental element in the Quality Model and in Lean thinking. The second use refers to methods that either suggest (e.g., Teian Kaizen) or generate and implement improvement ideas. Of the methods...
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...2249-4596 & Print ISSN: 0975-5861 Investigation of Sigma Level at the Stage of Testing Cement after Packing and Improving it using FMEA Approach By Md. Golam Kibria, Md. Enamul Kabir & S. M. Mahbubul Islam Boby Khulna University of Engineering &Technology (KUET), Bangladesh Abstract- Sophisticated customer demands and advanced technology have changed the way of conducting business. Financial condition of a manufacturing company largely depends on the defect rate of a product. Understanding the key features, obstacles, and shortcomings of the six sigma method allows organizations to better support their strategic directions, and increasing needs for coaching, mentoring, and training. The objectives of this paper are to study and evaluate processes of the case organization, to find out the current sigma level and finally to improve the existing Sigma level through decreasing defects. According to objectives, current sigma level has been calculated, manufacturing process analyzed and suggestions given for improvement. Especially in analyzing phase different analysis tools like Production Layout, Process Block Diagram, Cause and Effect Diagram, Cheek Sheet, Process control chart are used. FMEA is used as improvement tool. By using this it has been possible to improve productivity by reducing defects rate. This research work has been carried out in a cement manufacturing company to show how to implement Six- Sigma in this type of industry. This research related work...
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...Introduction This paper is written for the purposes of testing and exploration of Total Quality Management practices in the Euro area, with the special emphasis on the region of South Eastern Europe. The companies chosen in the report are coming from the various industries, whereas 3 of them are from retailing area, 3 from manufacturing industry and 4 from the servicing industry. Given that the seven of them can be described as multinational companies, it is expected to have results that will support differences in TQM adoption, regarding the transfer of practices and obstacles observed, when compared with the different regions in the world, especially with the early adopters, such as Japan and United States of America. In addition, it is of importance to state that in the testing process the Statistical Package for Social Science, Version 16, was used and that the exploration of the tests are in compliance with the framework proposed. The report starts with the brief introduction, then proceeds to the brief literature review that synthesizes expectations of the tests, that are fully explained and utilized, and concludes with proposals and remarks for the further tests and explorations. Literature review “Characteristic or standard measure of excellence; basic characteristic of something. Quality is a measure of the degree to which something meets a standard” (Jack P. Friedman Barron's Dictionary of Business Terms, 2001.) Total Quality Management (TQM) can be...
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...Lean Six Sigma Notes Lean cuts down on waste, reduce cycle times Six sigma reduces variation in a process DMAIC: define, measure, analyze, improve, and control define identify project, capture VOC and VOB measure baseline data metric is critical analyze find the root cause of your problem (may be many but find the significant 1, 2, and 3 root causes affecting this project), validate critical Xs, what really affects the output of the process value added vs non value added improve develop solution and test solution (pilot/pilot plan) control implement policies and procedures (SOPs) to sustain improvements Process: activity that produces something (information, items, ideas, or notions) for a customer concerned with quality, cost, or speed value stream = process value stream map = a process map with raw data on it Project Charter contract between you and the sponsor update this during every phase in DMAIC 1) Draft Problem Statement = Pain of Customer 2) Drafting Goal Statement 3) Complete project scope 4) Draft business impact 5) Project plan 6) Team Selection 7) Signatures (optional) RACI chart (Responsible Commanders, Accountable Staff, Consulted SEM, Informed) Project sponsors typically the process owners Opportunity or problem statement what pain are we feeling? what are they complaining about? what is not working? Problem should never have the solution in it? Project scope what authorities do you have? (defines what is in scope and out of ...
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...Lean six sigma is a methodology that is used to improve performance by systematically removing waste from what ever problem you are facing. It relies on a collaborative team effort to implement and be properly utilized on a corporate level to be effective and that is what Xerox intended to accomplish when they decided to help Medtronic with their unwanted mail problem. Medtronic who is a global leader in medical technology, had a problem that I’m sure many companies have. They were receiving an excessive amount of unwanted mail at their Tempe campus. This of course snowballed into a bigger problem when it started to result in wasting time retrieving, sorting and delivering the junk mail. Although at first sight it seems like a simple problem, companies worldwide let similar problems occur causing them sometimes hundreds of thousands of dollars. During the Measure phase, Xerox gathered quantitative and qualitative data to get a clear picture of what the current state of Medtronic was. The reason they would do this process is because it makes it easier to evaluate potential solutions. There were numerous locations to find information that would be valuable and help in the process of moving forward in the DMAIC process. Some of the measures that were collected were as follows: The amount of storage space being used and how much is available, number of mail, phone, and fax requests, number of steps in a process, and number of errors requiring a redo. In the analyze phase...
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...Capitulo 0 Breve Introducción a Lean Seis Sigma 1 ¿Qué es Lean Seis Sigma Lean Six Sigma es una Metodología que Maximiza el valor de la empresa logrando una rapidez en la mejora de la satisfacción del cliente, el costo la calidad, la velocidad de los procesos y la inversión de capital. La fusión de Lean y Seis Sigma es necesaria porque: Lean no puede poner un proceso bajo control estadístico. Seis Sigma por si solo no puede mejorar de manera dramática la velocidad del proceso ó reducir la inversión de capital. 2 La Rapidez de Lean Seis Sigma Lean Seis Sigma entrega resultados mas rápido que Lean ó Seis Sigma por si solos. “Es difícil ser agresivo cuando no sabes a que pegarle”. (Vince Lombardi) A que pegarle significa ¿Qué mejoras especificas deben ser ejecutadas y en que orden? Esta pregunta no puede ser entendida ó contestada por aquellos enfocados de manera separada en Lean ó en Seis Sigma. 3 El Principio de Lean Seis Sigma Las actividades que causan los problemas en los CTQ’s (Critical to Quality) de los clientes y crean los tiempos de retraso mas largos en cualquier proceso ofrecen la mayor oportunidad de mejora en costo, calidad, capital y Lead Time. 4 Lean Seis Sigma Lean significa velocidad; esta se aplica a todos los procesos. Los procesos lentos son procesos caros. El métrico de lean es la eficiencia del ciclo de proceso. Los tamaños de lote deben calcularse utilizando variables de flujo. 95% de los Lead...
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...The Emergence 1 The Emergence of Lean Six Sigma Carl E. Pierce MBA 5101-06F – Strategic Management and Business Policy Professor Larry R. Williams October 15, 2006 The Emergence 2 Introduction Every organization has problems that get solved over and over again, only to reappear. Organizations work hard for months, generating solutions that people know will work, but don’t. To have any chance of success, implementation of Lean Six Sigma must be accompanied by new positions, new training, and new ways for different layers of the organization to communicate. By delivering products and services with speed, customer satisfaction and lower cost through operational excellence is essential to achieve and sustain superior shareholder returns in businesses and government enterprises. Operating excellence is becoming a priority in services like banking, insurance, retail, and government, because so much of the cost is tied into operations. Lean Six Sigma and Six Sigma are all about change and managing change. We all want improved results; it is just the challenge of making the changes and managing change necessary for the improved results that present the challenges. For some managers, the changes brought by Lean Six Sigma can present a challenge to their normal management approach. Decisions...
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...The Impact of ‘Lean’ The purpose of this module: This module will look at how to manage within a lean environment and what considerations need to be taken account of when making management decisions. We will then look at the impact of lean across several industry sectors and conclude my looking at the way Lean and Six Sigma have become closely integrated. Timing: 60 – 90 minutes Lean Process Management When you start to undertake Lean reviews within an organization you have the opportunity to integrate it into the corporate strategy and long term vision for the business. Agreeing to review all production areas within a business to ensure they are efficient using lean methodology can make a big difference to the way you perform and deliver. Lean Process Management Many organizations use the balanced scorecard to report on their performance. The balanced scorecard reports on performance by four quadrants or areas to demonstrate how the business is moving towards its vision or corporate strategy. These areas are Financial, Customer, internal business processes and learning and growth. Lean has significant overlap with these areas to help develop and achieve the corporate goals. Lean Process Management It focuses on the customer and their values, it measures structured improvements, often with financial values, it puts quality and internal process improvement as a continual cycle and it engages with all employees offering ...
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...It is not a rocket science and everybody can do it. All you need is to follow our step by step training and you are good to go. EBA International Pvt. Ltd. is pleased to welcome you as a participant in her 2nd upcoming training on Six Sigma Green Belt. EBA International is a strategic partner of Harrington Institute America and now partnered with Horizon Group. We are sure you will find, as have many of others that EBA gives its participants the knowledge and the tools they need to compete in today's organizational challenges while reforming them to be tomorrow's rejection free, effective and efficient organization. Learning Outcomes This training course shall deliver time-tested insights and flawless techniques as developed by the Harrington Institute, imparting understanding required to select solutions that would best fit your organization's objectives and culture. It also includes exercises, worksheets and templates that you can easily customize to create your own framework for continuous process improvement. Contents Introduction to Six Sigma Quality System Green Belt Methodologies DMAIC Statistics Tools for Six Sigma Green Belt Six-Sigma basic tools Process Improvement Team Building SSGB Certification via exam Six sigma Implementation Project A lot of experienced and...
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...IMPLEMENTASI LEAN SIX SIGMA DI BANK MANDIRI Division May 31, 2011 Tentang Bank Mandiri 2 Presentation title in footer © PT Bank Mandiri (Persero) Tbk. Division May 31, 2011 Visi & Misi VISI To be most Indonesia’s admired & progressive financial institution MISI • • • • • Berorientasi pada pemenuhan kebutuhan pasar. Mengembangkan sumber daya manusia profesional. Memberi keuntungan yang maksimal bagi stakeholder. Melaksanakan Manajemen terbuka. Peduli terhadap kepentingan masyarakat dan lingkungan. Sumber: www.bankmandiri.co.id 3 Presentation title in footer © PT Bank Mandiri (Persero) Tbk. Division May 31, 2011 Posisi Bank Mandiri Sumber: Bank Mandiri, Buku Tahunan 2009 500 400 300 200 100 0 05 06 07 08 Assets (Rp tn) 09 10 8,000 6,000 1,500 1,000 500 0 05 06 07 08 09 ATM, LS Cabang, RS 10 4,000 2,000 0 300.0 200.0 100.0 0.0 05 06 07 Dana 4 15.0 10.0 5.0 0.0 08 Kredit 09 10 05 06 07 08 09 10 Rekening DPK (juta) Presentation title in footer © PT Bank Mandiri (Persero) Tbk. Division May 31, 2011 Perkembangan Bisnis Semakin pesat, memerlukan CAT dan efisien 30% 20% Pertumbuhan bisnis (Cabang, Rekening DPK) lebih cepat dibandingkan dengan infratrukturnya (pegawai). Infrastruktur harus dapat mengimbangi perkembangan bisnis. Infrastruktur harus Cepat, Akurat, Tepat, dan Efisien. LEAN SIX SIGMA merupakan inisiatif yang dapat menjawab tantangan ini. 05 Pegawai 06 07 08 ATM 09 10 Cabang...
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...ANALISA EFEKTIVITAS ATAS PEMANFAATAN SOFTWARE PROSES BISNIS “ARIS 9.8” DENGAN PENDEKATAN LEAN SIX SIGMA DI BPJS KETENAGAKERJAAN UNTUK PENINGKATAN KINERJA PERUSAHAAN Oleh : Yulia Nevi Artati Program : Eksekutif B – Kelas 28 C Magister Manajemen Fakultas Ekonomika dan Bisnis Universitas Gajah Mada 2015 DAFTAR ISI Daftar Isi ……………………………………………………………………... i Daftar Gambar ……………………………………………………………….. iii Daftar Tabel ………………………………………………………………….. iv Daftar Lampiran ……………………………………………………………… v BAB I PENDAHULUAN …………………………………………………… 1 1.1 Latar Belakang ………………………………………………… 1 1.2 Rumusan Masalah ……………………………………………... 6 1.3 Tujuan Penelitian ……………………………………………… 6 1.4 Manfaat Penelitian …………………………………………….. 7 BAB II KAJIAN LITERATUR …………………………………………… 8 2.1 Kerangka Teoritis ……………………………………………… 8 2.1.1 Sistem Informasi ………………………………………………. 8 2.1.2 Software ……………………………………………………….. 9 2.1.3 Pemanfaatan Teknologi Informasi …………………………….. 9 2.1.4 Proses Bisnis …………………………………………………... 9 2.1.5 Enterprise Resource Planning (ERP) System …………………. 10 2.1.6 Lean Six Sigma ………………………………………………... 10 2.1.7 Kinerja Perusahaan ……………………………………………. 11 i 2.1.8 Skala Likert 11 2.1.9 Metode Penelitian : Analisa Kuantitatif 12 2.2 Kerangka Pemikiran …………………………………………… 14 2.3 Kerangka Konsep ……………………………………………… 16 2.4 Hipotesis ……………………………………………………… 17 BAB III METODOLOGI PENELITIAN …………………………………. 19 3.1 Rancangan Penelitian …………………………………………...
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...Armor School Research Library TDCD Fort Knox KY Bibliography March 2006 Lean Six Sigma Lean: Identifying 'waste' or ‘non-value-added activities’ from the customer perspective and then determining how to eliminate it the 'right' way. [Lean Six Sigma Institute] Lean Six Sigma: A business improvement methodology that maximizes shareholder value by achieving the fastest rate of improvement in customer satisfaction, cost, quality, process speed, and invested capital. [Lean Six Sigma Institute] http://www.army.mil/aeioo/rc/terms.htm Army rallies troops behind Lean Six Sigma program (Author: RP news wires – February 11, 2006) The Army’s growing Lean Six Sigma program has its roots in a corporate method of eliminating wasted time, money and material. Lean Six Sigma integrates two independently developed improvement tools: Lean and Six Sigma. Lean is an outgrowth of the Toyota production system, and focuses on increasing efficiency and reducing cycle time by the elimination of waste. Six Sigma was developed by Motorola beginning in the 1970s as an approach to improving quality and effectiveness through statistical control. Its roots go back more than 150 years to a Prussian mathematician who introduced the concept of the normal curve. Together, Lean and Six Sigma are powerful tools in transforming organizations, Army Materiel Command officials said. They said Lean Six Sigma enables a culture of innovation that continuously listens to customers, questions...
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