Lean Six Sigma 1 - Pan Learn (1)

1
Lean Six Sigma

www.panlearn.com
2
Before we begin

• Quality is a state in which value entitlement is
  realized for the customer and provider in every
  aspect of the business relationship.
• Business Quality is highest when the costs are at
  the absolute lowest for both the producer
  consumer.
• Defect is any process output that does not meet
  customer specifications, or that could lead to
  creating an output that does not meet customer
  specifications.
• Cost of Poor Quality (COPQ) is the cost that
  would disappear if systems, processes, and
  products were perfect.

www.panlearn.com
3
Introduction to Lean Six Sigma
Table of Contents

1. Brief on Six Sigma Lean
2. What is Lean?
3. What is Six Sigma?
4. Combining Lean and Six Sigma
5. DMAIC

www.panlearn.com
4
What is Sigma?
Sigma (upper case S, lower case s) is the
eighteenth letter of the Greek alphabet. In the
system of Greek numerals it has a value of
200 Sigma is used to show standard variation In
probability theory and statistics, the standard
deviation of a statistical population, a data
set, or a probability distribution is the square
root of its variance. It shows how much variation
there is from the "average" (mean) A low
standard deviation indicates that the data points
tend to be very close to the mean, whereas high
standard deviation indicates that the data are
spread out over a large range of values

www.panlearn.com
5
History of Lean Six Sigma
1980s-2000s What was today to become Lean Six
Sigma can be traced to Motorola in the United
States in 1986 to compete with the Kaizen business
model in Japan. In the 1990s Motorola introduced
Six Sigma in heavy manufacturing. Jack
Welch consulted and began Six Sigma at General
Electric. During the 2000s Lean Six Sigma forked
from Six Sigma. 2000s-2010s The first concept
of Lean Six Sigma was created in 2001 by a book
titled Leaning into Six Sigma The Path to
integration of Lean Enterprise and Six Sigma by
Barbara Wheat, Chuck Mills, Mike Carnell. In the
early 2000s Six Sigma principles expanded into
other sectors of the economy, such
as Healthcare, Finance, Supply Chain, etc.
www.panlearn.com
6
What is a Six Sigma?
Six Sigma (6s) is a set of techniques and tools
for process improvement in which 99.9999998027
of all opportunities to produce some feature of a
part are statistically expected to be free of
defects. Six Sigma, a process must not produce
more than 3.4 defects per million opportunities
(DPMO). Six Sigma strategies seek to improve the
quality of the output of a process by identifying
and removing the causes of defects and minimizing
variability in business processes. It uses a set
of quality management methods, mainly empirical,
statistical methods, and creates a special
infrastructure of people within the organization
who are experts in these methods. Each Six Sigma
project carried out within an organization
follows a defined sequence of steps and has
specific value targets, for example reduce
process cycle time, reduce pollution, reduce
costs, increase customer satisfaction, and
increase profits.
www.msystraining.com
7
Six Sigma Table
Sigma level DPMO Percent defective Percentage yield Cpk
1 691,462 69 31 0.33
2 308,538 31 69 0.67
3 66,807 6.7 93.3 1.00
4 6,210 0.62 99.38 1.33
5 233 0.023 99.977 1.67
6 3.4 0.00034 99.99966 2.00

Six Sigma capability corresponds to an efficiency
of 99.9996.
www.panlearn.com
8
The Standard Deviation
www.panlearn.com
9
Why Six Sigma?

A 3 ? process because 3 standard deviations fit
between target and spec
www.panlearn.com
10
Paradigm Shift - Comparing 6 with 3 Sigma
The 3 Sigma Company The 6 Sigma Company
Spends 1525of sales dollars on cost of failure Spends 5of sales dollars on cost of failure
Produces 66,807 ppm opportunities Produces 3.4 ppm opportunities
Relies on inspection to find defects Relies on capable processes that dont produce defects
Believes high quality is expensive Knows that the high quality producer is the low cost producer
Does not have a disciplined approach to gather and analyze data Use Measure, Analyze, Improve, Control and Measure, Analyze, Design
Benchmarks themselves against their competition Benchmarks themselves against the best in the world
Believes 99 is good enough Believes 99 is unacceptable
Define CTQs internally Define CTQs externally
www.panlearn.com
11
About Us
Pan Learn is the markets-leading learning
services company. Our customized training
solutions are efficiently tailored to meet
organization and individual goals.With various
training formats, technologies, and approaches,
we recognize the need for custom solutions that
fit your companys systems.Pan Learn is highly
recognized for its global expertise on trainings
to co-create significant business value.If you
are looking to touch new career heights in 2021,
Pan Learn can help you to achieve your dream.
www.panlearn.com
12
Thank You !
www.panlearn.com 1408 878 3094