Lean Six Sigma

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Lean Six Sigma
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Overview

• What is Lean Six Sigma?
• What can Lean Six Sigma do?
• How to get started

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Paths to Cost Reduction

• Remove roadblocks so your employees can produce
• Assign resources to bottlenecks
• Maximize internal capabilities
• Focus on what the customer wants to buy

• Cut services
• Reduce labor (lay-off)
• Contract work out
• Eliminate product features

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What is Lean Six Sigma?

• Combined 2 industry concepts
• Lean
• Six Sigma
• Combines problem solving tools

Kanban
Visual Mgt.
Value Stream Mapping
DFSS
ANOVA
Kaizen
MSA
5S
DOE
SPC
Setup Reduction
Root Cause Analysis
JIT - Pull
Hypothesis Testing
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Lean

• Focus on what is of VALUE to the customer
• Separate non-value added from value added
• Map the actions required to produce (value
  stream)
• Eliminate activities that do not move the product
  closer to its final form
• Make the remaining value added activities flow
  smoothly
• Produce only what customers need (pull)
• Continuous improvement

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Which is the better airline ticket?
Traveling to Groton, CT

• Ticket A
• 500 round trip
• 6 hours
• 3 layovers
• Arriving in NYC

• Ticket B
• 650 round trip
• 3 hours
• 1 layover
• Arriving in Groton/New London

What does value mean to you?
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Lean Philosophy

• Value
• More to value than just cost
• Defined by the ultimate customer Womack
• Voice of the Customer (VOC)
• Expressed in terms of
• A specific product
• A function or capability
• Questions
• What does the customer want to buy?
• What would they pay extra for?

Focus on what is of VALUE to the customer
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Types of Activities

• Value-Added
• Brings product closer to its final form
• Changes the form, fit or function
• An activity the customer is willing to pay for
• Non-Value-Added
• Does not contribute to bringing the product to
  its final form
• Doesnt improve the form, fit, or function of the
  product or service on the first pass through the
  process.
• An activity the customer is not willing to pay
  for
• Waste

Separate non value added from value added
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8 Types of Waste
Steps are wasteful, people are valuable
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Lean Example

• Valve Manufacturing
• Objective Reduce time to produce valves
• Solution Revise process no temporary
  attachments

Legs
Lifting Blocks
Feet
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Lean Example

• Certification Package

Not Required
Redundant Review
Minimize Rework
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Batch versus Continuous Flow
Batch Queue Processing
Process A
Process B
Process C
10 Minutes
10 Minutes
10 Minutes
Continuous Flow
Process A
Process B
Process C
12 Minutes for order of 10
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Lean Approach
From NAVSEA VSA Training
Batch
Continuous Flow
Dept 1
4
Dept 2
3
OUT
1
2
Dept 3
Dept 4
Batch processing has a direct impact on the total
Work-in-Process
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Lean Approach
From NAVSEA VSA Training
Disassemble
Transport
Wait
Transport
Set-up
Wait
Re-Install
Machine
Machine
Remove From Ship
Start
Finish
Time
Repaired Component
Broken Component
Value-Added time is typically only a small
percentage of the total time
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Lean Approach
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From NAVSEA VSA Training
Overtype with Section Title
Overtype with Section Title
Date / Reference / Classification
Date / Reference / Classification
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Lean Approach
From NAVSEA VSA Training

• Traditional Focus
• Improve Value-Added work steps
• Better tools, machines, instructions
• Result Small time savings

Time
Small
LARGE amount
Amount of Time Eliminated

of time saved

• Time savings have a direct impact on
• Cost Capacity
• Schedule Flexibility
• Resources Etc.

• Lean Focus
• Make all of the Value Stream visible
• Reduce or eliminate Non-Value-Added portions of
  the process
• Result Large time savings

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Continuous Flow
Traditional ThinkingBatch Productionlike a
meanderingstream with many stagnant pools,
waterfalls, and eddies Doubling production rate
means doubling resources
Continuous Flow Thinking Pipeline with
fast-flowing product no stops, piles, or
back-upsDoubling production rate means halving
the time waiting
Flow production was an even more valuable
innovation of Henry Fords than his better-known
mass production model.
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How Does Lean Solve Problems?

• Focuses on what is of VALUE to the customer
• Understand customer expectations and requirements
• In terms of the what the product provides, not
  just the product itself
• Eliminates activities that do not move the
  product closer to its final form
• Reduces the 8 types of waste
• Creates continuous flow

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Six Sigma Philosophy

• Reduce variation
• Yf(X)
• Making decisions based on data

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What is Six Sigma?

• Change in quality philosophies

Traditional Goalpost Philosophy
LSL
USL
Loss
Loss
OK
Anything outside the specification
limits represents quality losses
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How Does Six Sigma Solve Problems?
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Six Sigma Example

• Practical Problem
• Pass rate for Technicial Exams was declining
• Statistical Problem
• Yf(X)
• Y Scores
• X
• Exam section
• Place of training
• How often skills are used (experience)
• Elapsed time since training
• Statistical Solution
• 3 sections of the exam are the highest trouble
  spots
• Experience is the most significant factor in
  passing
• Practical Solution
• Focus training on 3 areas for inexperienced
  technicians

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What is Six Sigma?

• 99.99966 of values are within specifications

m
USL
LSL
s
s
s
s
s
s
s
s
s
A 6s Process
A 3s Process
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Is Six Sigma Overkill?
99.99966 (6s)
99 (3.8s)

• 20,000 lost articles of mail per hour
• 15 minutes of unsafe drinking water each day
• 5,000 incorrect surgical operations per week
• 2 short or long landings at most major airports
  each day
• 11 hours of no electricity per month

• 7 lost articles of mail per hour
• 1 minute of unsafe drinking water per 7 months
• 1.7 incorrect surgical operations per week
• 1 short or long landing every 5 years
• 1 hour of no electricity every 34 years

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Pipe Welding Quality

• Reduce concave convex defects in pipe butt welds

• Experimented on the effects of
• Purge pressure
• Starting point
• Weld segment overlap
• Intersegment temperature
• Welder technique

Identified key factors to control and ones that
had no effect
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Effluent Discharge
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Value Stream Mapping

• Tile Material Manufacturer
• Mapped the value stream
• Identified key constraints
• Implementing just go do its
• Identified specific resources needed to support 2
  ships per year

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Ways To Get To Six Sigma

• Identify critical inputs control them
• Quantifiable management
• Measure performance
• Decisions based on data

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Ways To Get To Six Sigma
Control Methods

• Type 1 Corrective Action Countermeasure
• Type 2 Corrective Action Flag
• SPC/SPM Empowered Operators
• Type 3 Corrective Action Inspection
• SPC/SPM Operators Not Empowered
• Standard Operating Procedure
• Warning Signal Used to Detect Defects
• SPC/SPM - Wallpaper

Best
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But we arent mass production

• Look for repetition
• Valve manufacturing
• Certification package review
• Pipe welding
• Effluent discharge

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But we arent mass production

• Product Families
• Different products that follow the same steps
• Processes
• Repetitive tasks
• For a product
• For a service
• For just normal day to day activities
• If its not the first time, then there is a
  process.

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Supplier Lean Outreach
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Why Supplier Lean Outreach?

• Extend Lean and Six Sigma to suppliers

30 Purchased Material
31 Government Material
Shipyard Labor 39
Block III (SSN787) Costs
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Goal

• Conduct joint process improvement projects with
  VIRGINIA Class vendors to reduce defects, and
  cycle time via the application of Lean Six Sigma
  tools and techniques.
• Create a win-win between supplier and EB
• Tangible improvement
• Benefits both companies
• Funded for 2 projects/year

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Methodology

• Voice of the Customer
• All customers not just purchasing
• Kick-off with Vendor
• Identify problems, issues, roadblocks
• Value Stream Analysis Development of
  Improvement Plan
• Improvement Plan Execution and Follow-on Onsites

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How To Get Started
We all tend to concentrate on taking corrective
actions that we know how to take, not necessarily
concentrating on the problems we should correct
and the actions needed to correct (them). -
Eliyahu Goldratt
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How To Get Started

• Involve the employees
• Examine the detailed process with them
• Empower them to make process changes to
• Eliminate non-value-added steps
• Keep adding value continuously without
  interruptions
• Ask the right questions
• What can we do to save time?
• Not What can we do to save money?
• Get to the root causes
• 5-Whys, etc.

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How To Get Started

• Reduce work in process (WIP)

WIP Waiting Longer lead timesDelayed
salesIncreased expenses Less Profit!
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How To Get Started

• Books to read
• Lean Thinking. Womack Jones
• Lean Six Sigma Combining Six Sigma Quality With
  Lean Speed. M. L. George
• Theory of Constraints. Goldratt
• The Goal. Goldratt

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How To Get Started

• Communicate with Electric Boat
• Things you are doing
• Ask for clarification on our needs
• Voice of the Customer

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Wrap - Up

• What is Lean Six Sigma?
• What can Lean Six Sigma do?
• How to get started

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