Lean Six Sigma Green
Belt Training and
Certification
Service Perfection Through Error Elimination
Lead improvement systematically.
Entrench culture of Quality Improvement.
Engage productive and innovative teams.
Make excellence a habit.
1
GETTING TO KNOW YOU…
1. State your name and preferred nick-name
2. Your function/role in the company
3. Tell something unique about yourself
4. Expectation/s on this course
2
COURSE OBJECTIVES
❑ Understand the benefits of Lean Six
Sigma Green Belt Program, its
intended purpose and function to the
organization implementing it
❑ Appreciate every phases defined in
the DMAIC methodology with
additional concepts and application of
lean thinking
❑ Execute the key phases with practical
tools and techniques
3
GREEN BELT TRAINING AGENDA
INTRODUCTION ANALYZE PHASE (CONT.)
Day 1 1. Lean Six Sigma Introduction Day 4 4. Validate Causes – Qualitative
2. History Of Lean Six Sigma 5. Analyze Case Study
3. What Is Lean Six Sigma
IMPROVE PHASE
DEFINE PHASE 1. Identify Solution
1. Identify Customer Needs 2. Prioritize Solution
2. Develop Project Charter 3. Implement Solution
3. Understand Current Process 4. Evaluate Results
4. Define Case Study 5. Improve Case Study
MEASURE PHASE CONTROL PHASE
Day 2 1. Introduction To Statistics Day 5 1. Process Control Systems
2. Identify What To Measure 2. Project Handover And Closure
3. Identify How To Measure 3. Control Phase Case Study
4. Evaluate Measurement System 4. Green Belt Final Exam
5. Summarize Performance
6. Calculate Baseline Capability
7. Measure Case Study
ANALYZE PHASE
Day 3 1. Identify Potential Causes
2. Prioritize Sources Causes
3. Validate Causes – Quantitative
4
MAIN PROBLEM BUSINESS FACE TODAY
Firefighting! Problem re-
Problem
Immediate occurs again
Identified
Containment elsewhere
5
PROBLEM SOLVING APPROACH
Gather
Understand Identify root Fix root Sustain
reliable
the problem cause cause improvement
information
6
THE DMAIC LEAN SIX SIGMA
PROCESS IMPROVEMENT ROADMAP
DEFINE Understand
Sustain
the
Improvement
problem
6σ
CONTROL MEASURE
Gather
reliable
Fix root information
cause
IMPROVE Identify ANALYZE
root
cause
7
HISTORY OF
LEAN SIX SIGMA
8
LEAN SIX SIGMA TIMELINE
SIX SIGMA
Shewhart Deming
Guinness Introduces
❑ 14 Points
❑ 7 Deadly
Brewery SPC Diseases
1900 1930 1950
Toyota
Ford Gilbreth, Inc.
Production
•Management
Assembly Theory System
•Industrial
Line Engineering
LEAN
9
LEAN SIX SIGMA TIMELINE
SIX SIGMA
Motorola AlliedSIgnal
SPC Introduces GE Adapt LSS
to Business
TQM Six Sigma Processes
William B. Smith Mikel Harry
1929 - 1993 1951 - 2017
1980 1990
LEAN
2000
SIX
SIGMA
Just – Lean Mfg.
in–Time
LEAN
10
HONEYWELL & DOW RESULTS
“ We achieved $600 million in Six Sigma cost savings in 1999, but cost
savings are only one part of the story. Delighting customers and
accelerating growth completes the picture. When we are more efficient
and improve work flow throughout every function in the company, we
provide tremendous added value to our customers–through higher quality
”
solutions that are more competitively priced, delivered on time and
invoiced correctly. That makes us a more desirable business partner.
- Honeywell 1999 Annual Report [Link]
“ We expect Six Sigma to elevate our company to an entirely
new level of operational performance, delivering $1.5 billion
in EBIT cumulatively by 2003 from the combined impact of
”
revenue growth, cost reductions and asset utilization.
- Dow 1999 Annual Report [Link]
11
GE & DuPont RESULTS
“ The Six Sigma initiative is in its fifth year — its fifth trip
through the operating system. From a standing start in 1996,
with no financial benefit to the Company, it has flourished to
the point where it produced more than $2 billion in benefits in
”
1999, with much more to come this decade.
- GE 1999 Annual Report [Link]
“ Six Sigma implementation continues to gain momentum. At
the end of the year 2000, there were about 1,100 trained
”
Black Belts and over 3,400 active projects. The potential
pretax benefit from active projects was $700 million.
- DuPont Fourth Quarter and Full Year 2000 Earnings Report [Link]
new/releases/01/[Link]
12
WHAT IS SIX SIGMA?
❑ MANAGEMENT SYSTEM - Six Sigma drives strategy execution
❑ METHODOLOGY - Consistent use of DMAIC model
❑ METRIC - Measure process variation
Management System
Methodology
Metric
13
SIX SIGMA AS A METRIC
14
SIX SIGMA AS A METRIC
σ
❑ The term “SIGMA” is used to designate the distribution or
spread around the average of any process
❑ The “SIGMA LEVEL” is a metric that indicates how well a
process is performing
❑ A defect is anything that results in customer dissatisfaction
❑ The higher the Sigma Level, the better
AS DEFECTS
σ REDUCE,
SIGMA LEVEL D
INCREASES
B
15
SIX SIGMA - A MEASURE OF VARIATION
SIGMA (σ) represents standard deviation - a measure of variability
USL
6 Sigma
5 Sigma
4 Sigma
3 Sigma
2 Sigma
1 Sigma
16
SIGMA LEVEL
DEFECTS PER MILLION
σ OPPORTUNITY (DPMO)
% GOOD
6 3.4 99.99966
5 232.6 99.97674
4 6,209.7 99.37903
3 66,807.2 93.31928
2 308,537.5 69.14625
1 691,462.5 30.85375
17
SIX SIGMA CAN BE A PERFORMANCE
GOAL
SIGMA LEVEL
2 Sigma = 95.46% error-free
3 Sigma = 99.7% error-free
4 Sigma = 99.994% error-free
6 Sigma = 99.9997% error-free
EXAMPLES
100,000 invoices Phone out/month Lights out/week
2σ = 4,540 wrong 2σ = 30.5 hours 2σ = 7.6 hours
3σ = 300 wrong 3σ = 2 hours 3σ = 30 minutes
4σ = 6 wrong 4σ = 2.42 minutes 4σ = 36 seconds
6σ = 0.3 wrong 6σ = 7.3 seconds 6σ = 2 seconds
18
WHY SIX SIGMA?
99% GOOD 99.99966% GOOD
(3.8σ) (6σ)
❑ 20,000 lost articles of mail per hour ❑ 7 articles lost per hour
❑ Unsafe drinking water for almost 15 ❑ Unsafe drinking water for almost 1
minutes each day minute in 7 months
❑ 5,000 incorrect surgical operations
❑ 1.7 incorrect operations per week
per week
❑ Two short or long landings at most ❑ One short or long landing every five
major airports each day years
❑ 200,000 wrong drug prescriptions
❑ 68 wrong prescriptions per year
each year
19
SIX SIGMA PROCESS IMPROVEMENT
LSL USL LSL USL
Defects Defects Defects
CUSTOMER TARGET CUSTOMER TARGET
PREVENT DEFECTS BY PREVENT DEFECTS BY
REDUCING VARIATION CENTERING PROCESS
LSL USL
CUSTOMER TARGET
MEET CUSTOMER
REQUIREMENTS 20
SIX SIGMA EQUATION
Y = f(x)
Dependent Output Is a Function/Process of the Independent Input
In order to improve the “output” (Y), we need to understand
how the process works (F) and identify how the change in the
inputs (X’s) affects the output
21
THE SIX SIGMA VIEW
To get results, should we focus our behavior on the Y or X’s?
Y X’s
Dependent / Lagging Independent / Leading
Output Input / Process
Effect Cause
Symptom Problem
Monitor Control
Focus on Y is the old school of thought
In Lean Six Sigma, the Focus needs to be on X’s rather than Y
22
EXERCISE
Consider establishing a Y = f(X) equation for a
simple everyday activity such as producing a
cup of espresso. In this case our output, or Y,
is espresso.
Expresso = f(x1, x2, x3, x4,..xn)
23
SIX SIGMA AS A
METHODOLOGY
24
SIX SIGMA CYCLE
DEFINE Understand
Sustain
the problem
Improvement
6σ
CONTROL MEASURE
Gather reliable
information
Fix root cause
IMPROVE Identify ANALYZE
root cause
25
THE DMAIC METHODOLOGY
Step-by-step problem solving approach to reducing defects
D DEFINE PROJECT ALIGNMENT
M MEASURE ESTABLISH A BASELINE
A ANALYZE DETERMINE Y=f(x)
I IMPROVE OPTIMIZE Y=f(x)
IMPLEMENT LONG
C CONTROL
TERM
26
THE SIX SIGMA PROCESS
DEFINE/MEASURE ANALYZE
Practical Statistical
Problem Problem
Practical Statistical
Solution Solution
CONTROL IMPROVE
The practical solution is the goal
27
SIX SIGMA AS A
MANAGEMENT SYSTEM
28
SIX SIGMA ORGANIZATION
CHAMPION MASTER
BLACK BELT
BLACK BELT BLACK BELT BLACK BELT
GREEN GREEN GREEN GREEN GREEN
BELT BELT BELT BELT BELT
TEAM TEAM
MEMBER MEMBER
TEAM TEAM
MEMBER MEMBER
29
SPONSOR/CHAMPION
❑ Communicates leadership vision
❑ Identifies and removes organizational and cultural barriers to Six Sigma
success
❑ Holds regular project reviews in accordance with project charters
❑ Validates Six Sigma project results
❑ Rewards and recognizes team and individual accomplishments (formally
and informally)
❑ Nominates highly qualified Black Belt and/or Green Belt candidates
30
MASTER BLACK BELT
❑ Highly proficient in using Six Sigma methodology to achieve tangible
business results
❑ Technical expert beyond Black Belt level on one or more aspects of process
improvement (e.g., advanced statistical analysis, project management,
communications, program administration, teaching, project coaching)
❑ Identifies high-leverage opportunities for applying the Six Sigma approach
across the enterprise
❑ Coach / Mentor Black Belt projects
❑ Additional specialized skills especially useful in deployment of Six Sigma
across the Function/Location
31
BLACK BELT
❑ Leads business process improvement projects where Six Sigma approach is
indicated
❑ Successfully completes high-impact projects that result in tangible benefits to
the enterprise
❑ Demonstrated mastery of Black Belt body of knowledge
❑ Demonstrated proficiency at achieving results through the application of the
Six Sigma approach
❑ Coach / Mentor Green Belts
❑ Recommends Green Belts for Certification
32
GREEN BELTS & PROJECT TEAM
MEMBERS
❑ Participates in Six Sigma Black Belt project teams
❑ Part-time Six Sigma change agent. Continue to perform normal duties while
participating on Six Sigma project teams
33
LEAN
34
WHAT IS LEAN?
❑ LEAN THINKING is a mindset
❑ Lean is about REMOVING WASTE and increasing customer value
❑ Lean is about SMOOTH PROCESS FLOWS, doing only those activities that
add customer value and eliminating all other activities that don’t
❑ "Lean" comes from the ability to achieve more with less resource, by the
CONTINUOUS ELIMINATION OF WASTE
35
A BRIEF HISTORY OF LEAN
❑ The modern concept of Lean can be traced back to Benjamin Franklin’s writing
about waste, efficiency and cost savings.
❑ HENRY FORD credited Benjamin Franklin as a major influence in his business
practices and is credited himself for early adoption of lean principles and
proving their value in the manufacturing ASSEMBLY LINE.
❑ TOYOTA PRODUCTION SYSTEM (TPS) extended the concepts of Lean by
drawing more attention to the flow of smoothness of work.
❑ The term “LEAN” was first coined by John Krafcik in his 1988 article, "Triumph
of the Lean Production System", based on his master's thesis at the MIT Sloan
School of Management.
❑ Which influenced the production of the book “THE MACHINE THAT
CHANGED THE WORLD” co-authored by James P. Womack, Daniel Jones,
and Daniel Roos.
36
THE 5 PRINCIPLES OF LEAN
VALUE
▪ Defined from the customer’s perspective
MAP THE STREAM
▪ Understand the process flow in detail
▪ Understand the information flow in detail
CREATE FLOW
▪ Reduce all forms of Waste (Wait Time, NVA)
▪ The objective is continuous flow
ESTABLISH CUSTOMER PULL
▪ Provide only when needed
STRIVE FOR PERFECTION
▪ Continuously pursue improvement
37
LEAN: MORE VALUE TO THE CUSTOMER FOR
LESS RESOURCE BY ELIMINATING WASTE AND
REDUCING END TO END LEAD TIME
BEFORE Lean Project
A service process: e.g. processing a claim
Customer lead time (LT)
Requirement day 1 day 40
‘as fast as
possible’
‘no mistakes’ After
AFTER Lean project
Lean project
‘easy
transaction’
processing a claim
Value demand better handled
day11
day lead time
LT (LT) day
day 12
12 Failure demand removed
38
IDENTIFYING WASTE
VALUE ADDING
Any process that changes the
nature, shape or characteristics
of the product, in line with
MAXIMIZE
customer requirements
NON-VALUE ADDING, but
unavoidable with current technology or
methods.
Any work carried out that does not increase MINIMIZE
product value
WASTE
All other meaningless, non-essential
activities that do not add value to the ELIMINATE
product you can eliminate immediately
39
WASTES IN PROCESS (NVA)
Overproduction
QUANTITY
Inventory
Transporting
OVERPRODUCTION Processing
INVENTORY
Waiting
PEOPLE
Motion
Underutilization of Talent
Defects QUALITY
WAITING
MOTION TRANSPORTATION
40
8 DEADLY WASTE
TRANSPORTATION Movement of the products to an area that doesn’t add value
Raw materials, work-in-process or finished goods that aren’t
INVENTORY creating income
Unnecessary movement of equipment or operator to work on the
MOTION product
WAITING Time that products sits and waits to be processed or transported
OVER-
When product is produced than what the customer requires
PRODUCTION
OVER- Doing more work to a product than what is required by the
PROCESSING customer
Any product not meeting customer requirements will cause re-
DEFECTS work, rescheduling, delays etc.
SKILLS Unused human talent
41
ACRONYM
TIMWOODS
42
LEAN VS SIX SIGMA
43
LEAN VS. SIX SIGMA
SIX
LEAN
SIGMA
❑ Focus on PROCESS - Reduce non- ❑ Focus on OUTPUT - meet process
value added activities deliverables
❑ A Strategy for maximizing value to ❑ An approach to problem solving by
Customers through WASTE focusing on DEFECT PREVENTION
ELIMINATION / REDUCTION
❑ Emphasis on EFFICIENCY ❑ Emphasis on EFFECTIVENESS
(SPEED/FLOW) (QUALITY/ACCURACY)
❑ Provides tools for analyzing process ❑ Requires data-driven analytics &
flow and delay times at each activity decision making
in a process
44
HOW IS IT THAT LEAN AND SIX SIGMA
ARE COMPLIMENTARY?
LEAN LEAN SIX SIGMA SIX SIGMA/LEAN
Helps identify steps that don’t add value Identifies problems in the Improves the capability of Improves the capability that
and provides tools to eliminate them flow steps that add value can eliminate additional steps
X X
45
LEAN AND SIX SIGMA
COMBINED
46
LEAN AND SIX SIGMA COMBINED
SPEED/FLOW QUALITY/ACCURACY PROCESS IMPROVEMENT
Identify and Close understanding Sustainable
eliminate non- of customer needs improvement based on
essential and non- effective analysis of
value added steps Disciplined way of facts and voice of the
in order to using facts, data and customer
streamline statistical analysis
production
47
SELECTING AND
PRIORITIZING PROJECTS
48
IDENTIFYING PROJECT SOURCES
BUSINESS STRATEGY VOICE OF THE
OR LONG TERM PLAN CUSTOMER (VOC)
KEY PERFORMANCE PROCESS GAPS
INDICATORS / METRICS
49
TYPES OF LEAN SIX SIGMA PROJECT
50
HOW TO PRIORITIZE PROJECTS
PROJECT STRATEGIC EASE OF FINANCIAL RESOURCE OVERALL
NAME VALUE IMPLEMENTATION BENEFIT IMPACT PRIORITY
5 – Highly Important 5 – Very Easy 5 – Highly Likely 5 – Low Impact
4 - Important 4 – Easy 4 – Likely 4 – Minimal Impact
3 – Somewhat 3 – Neutral 3 – Somewhat 3 – Some Impact
Important 2 – Difficult Likely 2 – Considerable
2 – Of Little 1 – Very Difficult 2 – Unlikely Impact
Importance 1 – Highly Unlikely 1 – High Impact
1 – Not Important
PROJECT A
PROJECT B
PROJECT C
Used during brainstorming to evaluate several projects based upon certain
criteria. This helps determine which projects need to be done first in order to
meet business objectives
51
PROJECT BENEFITS
52
HARD AND SOFT BENEFITS
HARD BENEFITS are tangible, measurable benefits
measured in dollars/money either through cost
reduction or increase revenue/sales/profit
SOFT BENEFITS are intangible benefits that are
hard to measure and can’t easily be translated into
dollars/money
53
TYPES OF SAVINGS
COMMON HARD SAVINGS COMMON SOFT SAVINGS
❑ Reduction in unit cost of ❑ Increased safety in the workplace
operations
❑ Increased employee satisfaction
❑ Reduction in unit cost of
❑ Increased customer satisfaction
production
❑ Reduce compliance issues
❑ Reduction in transaction cost
❑ Reduction in overhead cost
❑ Reduction in transportation cost
❑ Reduction in manpower
❑ Increased throughput, resulting in
increased sales or revenue
54