Lean Six

Sigma

Lean Six Sigma

Integrated

Copyright 2005, AIT Group Inc. All rights reserved. 1

 Lean Six
Sigma

Lean and Six Sigma Integration

Copyright 2005, AIT Group Inc. All rights reserved. 2

 Lean Six
Six Sigma & Lean Integration Sigma

Why Integrate?
“We knew we wanted to have Six Sigma Tools, that was clear.
But we also decided that what really makes change in a factory
are some of the Lean tools. Putting in a pull system, reducing
batch sizes, significantly changing setup times, all of a sudden
everything starts to flow.
Those are the types of things we saw over time that really
made a difference in our factories and so we said that has to
be a part of this training.”
– Lou Guiliano, ITT Industries CEO
on integrating lean techniques into
ITT’s Six Sigma Rollout

Copyright 2005, AIT Group Inc. All rights reserved. 3

 Lean Six
Lean and Six Sigma Together Sigma

Lean Six Sigma

X +
Speed + Waste Quality, Cost +
Implicit Approach Explicit Approach
• Goal – Reduce waste and • Goal – Improve performance
increase process speed Lean on Critical Customer
• Focus – Bias for action/ Six Requirements
Utilize existing, proven Lean Sigm • Focus – Use repeatable
Tools a DMAIC approach for sustained
• Method – Kaizen events, results
Value Stream Mapping • Method – Intense focus on
projects, performance
improvement a key
leadership activity

Lean Speed Enables Six Sigma Quality Enables

Six Sigma Quality Lean Speed
(Faster Cycles of (Fewer Defects Means
Experimentation/Learning) Less Rework)

Copyright 2005, AIT Group Inc. All rights reserved. 4

 Six Sigma with Lean Is the Integration of Two Lean Six
Powerful Business Improvement Approaches Sigma

Precision + Accuracy + Speed + Low Cost +

VOC Flexibility
• Six Sigma • Lean
• Voice of the Customer (VOC) • Value stream mapping
• Statistical Process Control • Bottleneck identification and
• Design of Experiment removal
• Error-proofing • “Pull” from the Customer
• Measurement Systems Analysis • Setup and queue reduction
• Failure Modes Effect Analysis • Process flow improvement
• Cause and Effect Analysis • Kaizen
• Hypothesis Testing • Supply Chain Strategy
• 5S
• S&OP

Copyright 2005, AIT Group Inc. All rights reserved. 5

 Integrating Lean and Lean Six
Six Sigma Initiatives Sigma

• Lean and Six Sigma can co-exist independently,

but the benefits of integration are tremendous...
• Single channel for employing limited resources
• One improvement strategy for the organization
• Highly productive and profitable synergy
…while the pitfalls of not integrating them are
formidable
• Divided focus of the organization
• Separate and unequal messages for improvement
• Destructive competition for resources and projects

Copyright 2005, AIT Group Inc. All rights reserved. 6

 Lean Six
Six Sigma and Lean Sigma

• Six Sigma is the “Unifying Framework”

• Six Sigma provides the improvement infrastructure
• CEO Engagement
• Deployment Champions
• Green Belts, Black Belts, Master Black Belts
• Over-riding methodology: DMAIC, DMEDI, DMADV
• Lean provides additional tools and approaches to
“turbo-charge” improvement efforts
• Tools: Set-up reduction, 5S, Kanban, Waste Reduction
• Approaches: Kaizen, Mistake-proofing

Copyright 2005, AIT Group Inc. All rights reserved. 7

 Lean Six
Lean Six Sigma Synergy Sigma

Overall Yield vs. Sigma

(Distribution Shifted ±1.5σ)
# of Steps ±3σ ±4σ ±5σ ±6σ

1 93.32% 99.379% 99.9767

Lean Reduces Non-Valued Add Steps

99.99966%
ly
ous
7 61.63 95.733 99.839 ltane 99.9976
m u
i
s tS
C o
10 50.08 93.96 and 99.768 99.9966
d
pee
, S
y
a lit
20 25.08 Qu 88.29 99.536 99.9932
i v es
D r
ma
40 Sig 6.29 77.94 99.074 99.9864
S ix
e an
L
Six Sigma Improves Quality of Value Add Steps

urce: Six Sigma Research Institute, Motorola University, Motorola, Inc.

Copyright 2005, AIT Group Inc. All rights reserved. 8
 Lean Six Sigma Lean Six
Improvement Process Road Map Sigma

Define Measure Analyze Improve Control

Activities
•Review Project Charter •Value Stream Map for •Identify Potential •Develop Potential •Implement Mistake
•Validate Problem Deeper Understanding and Root Causes Solutions Proofing
Statement Focus •Reduce List of •Evaluate, Select, and •DevelopSOP’s,
and Goals •Identify Key Input, Process Potential Root Optimize Best Solutions Training Plan &
•Validate Voice of the and Output Metrics Causes •Develop ‘To-Be’ Value Process Controls
Customer •Develop Operational •Confirm Root Stream Map(s) •Implement Solution
& Voice of the Business Definitions Cause to Output •Develop and Implement and Ongoing Process
•Validate Financial •Develop Data Collection Relationship Pilot Solution Measurements
Benefits Plan •Estimate Impact of •Confirm Attainment of •Identify Project
•Validate High-Level •Validate Measurement Root Causes on Project Goals Replication
Value Stream Map and System Key Outputs •Develop Full Scale Opportunities
Scope •Collect Baseline Data •Prioritize Root Implementation Plan •Complete Control
•Create Communication •Determine Process Causes •Complete Improve Gate Gate
Plan Capability Identify and Implement
•Complete Analyze
Quick Improvements •Transition Project to
Tools
•Select and Launch •Complete Measure Gate Gate Process Owner
•Project
Team Charter •Value Stream Mapping •Process Constraint ID Kaizen, 5S, NVA Analysis, •Mistake-Proofing/
•Voice
Developof the
Project •Value of Speed (Process and Takt Time Analysis Generic Pull Systems, Zero Defects
Customer
Schedule and Kano Cycle Efficiency / Little’s •Cause & Effect Four Step Rapid Setup Method •Standard Operating
•Analysis
Complete Define Gate Law) Analysis Procedures (SOP’s)
•Replenishment
•SIPOC Map •Operational Definitions •FMEA •Process Control Plans
•Project Valuation / •Data Collection Plan •Hypothesis Tests/Conf. Pull/Kanban •Visual Process Control
•Stocking Strategy
ROIC Analysis Tools •Statistical Sampling Intervals Tools
•Process Flow
•RACI and Quad •Measurement System •Simple & Multiple •Statistical Process
Improvement
Charts Analysis (MSA) Regression Controls (SPC)
•Process Balancing
•Stakeholder •Gage R&R •ANOVA •Solution Replication
•Analytical Batch Sizing
Analysis •Kappa Studies •Components of •Project Transition
•Total Productive
•Communication Plan •Control Charts Variation Model
•Effective Meeting •Histograms •Conquering Product Maintenance •Team Feedback
•Design of Experiments
Tools •Normality Test and Process Session
•Inquiry and •Process Capability (DOE)
Complexity
•Solution Selection Matrix
Advocacy Skills Analysis •Queuing Theory
•Piloting and Simulation
•Time Lines,
Milestones, Copyright 2005, AIT Group Inc. All rights reserved. 9
 Lean Six
Define Sigma

• Develop a Project Charter with the Project Focus, Key Metrics,

and Project Scope
• Select Team Members and Launch Project
• Identify Stakeholders and develop a communication plan
• Identify the Customers and Capture the “Voice of the
Customer” Requirements (typically Quality and/or Speed)
• Identify the Process Owner and Capture the “Voice of the
Business” Requirements (typically Cost and/or Speed)
• Develop Critical Customer Requirements (CCR’s) and Critical
Business Requirements (CBR’s)
• Finalize Project Focus and Modify Project Charter
• Define Gate Review

= key deliverable
Copyright 2005, AIT Group Inc. All rights reserved. 10
 Measure Lean Six
Sigma

• Identify Key Input, Process and Output Metrics

• Clearly define Operational Definitions
• Develop a Data Collection Plan
• Validate the Measurement Systems
• Collect Baseline Data
• Determine Process Performance / Capability
• Validate the Business Opportunity
• Identify “Quick Win” Opportunities
• Measure Gate Review

= key deliverable
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 Lean Six
Analyze Sigma

• Brainstorm Key Process Input Variables & Key Process

Variables (KPIVs & KPV’s, I.e. Potential Root Causes)
• Prioritize Root Causes
• Conduct Root Cause Analysis
• Validate the Root Causes
• Estimate the Impact of Each Root Cause on the Project’s
Performance Output
• Quantify the Opportunity
• Prioritize Root Causes
• Analyze Gate Review

= key deliverable
Copyright 2005, AIT Group Inc. All rights reserved. 12
 Improve Lean Six
Sigma

• Develop Potential Solutions

• Develop Evaluation Criteria & Select Best Solutions
• Evaluate the Solutions for Risk
• Optimize the Solution
• Develop ‘To-Be’ Process Map(s) and High-Level
Implementation Plan
• Develop Pilot Plan and Pilot the Solution
• Improve Gate Review

= key deliverable
Copyright 2005, AIT Group Inc. All rights reserved. 13
 Lean Six
Control Sigma

• Institutionalize Process Changes and Controls

• Finalize SOP’s, Training Plan & Process Control System
• Implement Process Changes and Controls
• Stabilize and Begin Monitoring the Process
• Transition Project to Process Owner
• Identify Project Replication Opportunities
• Prove Changes Resulted In Improvement
• Calculate Financial Benefits
• Control Gate Review

= key deliverable
Copyright 2005, AIT Group Inc. All rights reserved. 14
 Author Lean Six
Sigma

Steven Bonacorsi is a Senior Master Black Belt instructor and

coach. He has trained hundreds of Master Black Belts, Black Belts,
Green Belts, and Project Sponsors and Executive Leaders in Lean
Six Sigma DMAIC and Design for Lean Six Sigma process
improvement methodologies. Steven is a board member for the
Boston Chapter of the Industry of Industrial Engineers.
Full Bio: http://www.linkedin.com/in/stevenbonacorsi

Lean Six Sigma White Belt Certification:

• Add Lean Six Sigma White Belt (Basic Awareness) Training and Certification to
your Resume or Job Skills.
• Learn topics from one of the original Master Black Belts and world experts on
Value Stream Mapping, 5s, Process Capability, Deployment Planning, Roles and
Responsibilities, FMEA Risk Analysis, Control Plans and more.
• Certificates will be signed for all who complete the 2 hour training session.

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Learn More about The AIT Group Lean Six
http://www.theaitgroup.com Sigma

Copyright 2005, AIT Group Inc. All rights reserved. 16

 Lean Six
Who is AIT? Sigma
• AIT is a premier provider of Lean, Six Sigma and The AIT Group is an international
Supply Chain solutions. consulting firm that has been
specifically designed to help
• Solutions are customized to the customer – not
companies increase profitability by
one size fits all.
improving overall business
• The company was started in 1998 by three performance and customer satisfaction
individual that recognized extremely early in the through the integrated application of:
industry how well Lean, Six Sigma and Supply
Chain disciplines integrate.
• Our goal is the complete transfer of knowledge
via client specific solutions – not training.
Lean Supply
• Your instructors from AIT are Certified Master
Chain
Black Belts and Lean Experts.
Mgmt.
• We have worked with many different clients and Value
some of the largest companies in the world. $
• We have Offices in the US, Europe, Mexico and
China.
Six Sigma

www.theAITgroup.com

The AIT Group excels in implementation … not recommendation!

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