10/17/2017

Six Sigma Green Belt

‫عّا‬١‫ عرح ع‬ٝ‫ اٌؽضاَ االخضش ف‬ٝ‫ث‬٠‫اٌثشٔاِط اٌرذس‬
‫اػذاد‬
Dr. Mohammed Fahmy Aly
‫د دمحم فهمى على‬
‫رئيس قسم الهندسة الصناعية والميكانيكية‬
‫ جامعة الفيوم‬-‫كلية الهندسة‬
Mail : mfa03@[Link].
Mob. 01096970945
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Dr. Mohamed Fahmy

Module One

Content of part one

A. Introduction to Six Sigma

B. Introduction to Lean

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Leaning objectives
 What is six sigma
 Benefits of six sig sigm
 History of Six sigma
 Why it is important
 Factors affecting Project Success
 Roles for six sigma projects
 Six sigma Road Map
 Lean and Six sigma

Dr. Mohamed Fahmy

Introduction to Lean Six Sigma

 Lean Six Sigma Defined
 The 5 Lean Principles
 The 8 Forms of Waste
 Success Stories
 The Sigma Level
 The 99.9% Problem
 Lean Six Sigma Framework
 DMAIC - The Lean Six Sigma Improvement Process
 Lean and DMAIC
 Thought Process Mapping - Toolset
 Organizing for Success
 Working Relationships
 Introduction to Engine Room

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What are Current Leadership Challenges ?

Dr. Mohamed Fahmy

What are Current Leadership Challenges ?

Retaining Reducing Technology Delighting

People cycle times advances Customers

Reducing Responding Flexibility Growing

costs Quickly Overseas
Markets

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What is the permanent role of any manger

in any organization ?

Dr. Mohamed Fahmy

The permanent role of any manger in any

organization is
Showing peoples the
True North

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True North ‫الشمال الحمٌمى‬

 Quality ‫جودة افضل‬

 Productivity ‫انتاجٌة اعلى‬

 Faster (Lead time- On time)‫فى الولت وبسرعة‬

 Cost ‫تكلفة الل‬

 Human Development ‫تطوٌر البشر‬

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What is the Road

Map for this ?

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Coaching Vision &

Skills Mission Strategy
Facilitation High Mapping
Skills
Performance
Work Team
Values &
Hoshin
Culture Catch ball
Planning
Organizationa
l Design

An Operational Strategy
Process Excellence Deployment
Excellence Model

Management
Review Key
Six Risk Performance
Sigma Managemen Indicators
t Performance
Management
8 D Problem
Lean Solving Process
Balanced Managemen
Management Process
Scorecards t
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Dr. Mohamed Fahmy

What is Six-Sigma?

A scientific and practical method to achieve improvements in a company

Scientific:
• Structured approach. ―Show me
• Assuming quantitative data. the data‖
‖Show me
the money‖ Practical:
• Emphasis on financial result.
• Start with the voice of the customer.

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What is Six-Sigma?

―It is the relentless and rigorous pursuit of the reduction of variation in all critical

processes to achieve continuous and breakthrough improvements that impact the

bottom line of the organization and increase customer satisfaction.‖

‫ك أفشاض اٌّغرّش‬١‫اِح ٌرؽم‬ٌٙ‫اخ ا‬١ٍّ‫ وً اٌؼ‬ٟ‫ٓ ف‬٠‫ك ٌٍؽذ ِٓ اٌرثا‬١‫اٌذل‬ٚ ) ٝ‫س (طاسَ لاع‬١‫ اٌؽص‬ٟ‫ اٌغؼ‬ٛ٘

" ‫ادج سضا اٌؼّالء‬٠‫ص‬ٚ ‫ ِٓ إٌّظّح‬ٍٟ‫ اٌخظ اٌغف‬ٍٝ‫ ذؤشش ػ‬ٟ‫ٕاخ اٌر‬١‫اٌرؽغ‬ٚ

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Technical Definition of Six Sigma ‫التعرٌف‬

‫الفنى للستة سٌجما‬
Technical Definition (Motorola) ٌٝٚ‫س‬ٛ‫ذ‬ِٛ ِٓ ٕٝ‫ف اٌف‬٠‫اٌرؼش‬ 75%
LSL ±1.5 s USL

12.5% 12.5%

Cp=2 Cpk=1.5 Cp=2 Cpk=1.5

3.4 DPMO 3.4 DPMO
Cp=Cpk = 2

- 6s -5s -4s -3 s -2s -1s 0 +1s +2s +3s +4s +5s +6s

6s to LSL 6s to USL
Evolution to:

A Management driven, scientific methodology for product and process improvement

which creates breakthroughs in financial performance and Customer satisfaction
. ‫سضاء اٌؼّالء‬ٚ ٌٝ‫ االداء اٌّا‬ٝ‫ ذخٍك طفشج ف‬ٝ‫اٌر‬ٚ ‫إٌّرط‬ٚ ‫اخ‬١ٍّ‫ٓ اٌؼ‬١‫ ذؽغ‬ٌٝ‫ذف ا‬ٙ‫ا ذ‬١ٍ‫ح ذذاس تاالداسج اٌؼ‬١ٍّ‫ح ػ‬١‫ع‬ِٕٙ

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What is Six-Sigma?

• Management mandated and directed improvement program focused on

breakthroughs in financial performance and customer satisfaction
• Uses Champions, Black Belts and Green Belts to facilitate change
• Focused on core business and Customer needs
• A systematic method for process and product improvement
• A Greek symbol for measuring performance variation
• A metric for evaluating performance quality
• A standard of excellence (3.4 defects per million opportunities)

Dr. Mohamed Fahmy

What is Six Sigma

 A Vision and Philosophical commitment to our
consumers to offer the highest quality, lowest cost
products
 A Metric that demonstrates quality levels at
99.9997% performance for products and process
 A Benchmark of our product and process
capability for comparison to „best in class‟
 A practical application of statistical Tools and
Methods to help us measure, analyze, improve, and
control our process
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Further Defined?

• A statistical approach to problem solving

• A management culture
• A way of thinking
• A set of new behaviors
• Synonymous ‫مرادف‬with:
– Improving quality
– Reducing cost
– Improving customer loyalty/customer satisfaction
– Achieving bottom-line results

Dr. Mohamed Fahmy

Six Sigma‟s Modern

Evolution
1980
– Established by Motorola in response to foreign competition
and Baldridge Quality Award goal.
1990’s
– Focus on process improvement using statistical tools.
2005
– Lean Six Sigma” combines the structured management
“

methodology and problem solving tools of Six Sigma with

the business strategy, objectives and goals of “Lean
Enterprise”.

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The Business Experience

• Reduced cycle times, defects and costs

• Reduction/elimination of waste
• Improved productivity and efficiency
• Measurable financial results
• Increased product quality and reliability
• Significant improvement in customer satisfaction!
• Directly supports World Class performance goals.

Dr. Mohamed Fahmy

Management and Project

Support

Executives
Senior Deployment
Process
Champion
Owner
Finance Deployment
Champion Champion

Information Project
Technology Champion
Human
Champion
Resources
Champion
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Management and Project

Support
• Executives
– Create the Six Sigma vision and company environment.
– Define strategic and business goals.
• Senior Deployment Champions
– Day-to-Day management of Six Sigma throughout the business.
– Reports to and updates the executives on the progress of deployment.
– Liaison between the executives and deployment champions.

• Deployment Champions or Sponsors

– Responsible for the deployment of Six Sigma within the division or business unit.
– Facilitates the identification and prioritization of projects assuring alignment with the business
goals.
– Establishes and executes training plans.
– Selects the project champions.
– Removes barriers for the project team.
Dr. Mohamed Fahmy

Management and Project Support

• Project Champion
– Selects and mentors the Black Belts
– Leads in project identification, prioritization, and defining the project scope.
– Removes barriers for Black Belts and aligns resources.
• Process Owner
– Is a team member
– Takes ownership of a project when it is complete
– Responsible for maintaining the project’s gain

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Management and Project Support

• Finance Champion
– Estimates and certifies project savings
– Works with deployment champions to identify potential project opportunities.
– Assigns a finance representative on to each project team.

• Information Technology Champion

• Insures computer and software resourcing.
– Works with project teams to access data from existing databases
• HR Champion
– Works with Black Belts to develop a MBB, BB, and GB selection process.

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Smarter Six Sigma Solution

[S4]

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Improvement Tree Diagram

Long Term Short- Term Measures Target

Reduce Cycle Cycle Time 50 % Reduction

Faster‫اعشع‬ time
Reduce repair Repair Time 50 % Reduction
Vision Time

‫ح‬٠‫اٌشؤ‬ Better ً‫افض‬ Reduce Defects % Defective 50 % Reduction

Reduce Rework % Rework 50 % Reduction

% Waste 50 % Reduction
Cheaper Reduce Cost of
‫اسخض‬ Failure % Rework 50 % Reduction
Reduce cost of
Inspection % Inspection 50 % Reduction

Optimize Cost of % Prevention

Prevention 50 % Reduction
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Elements of Six
Sigma

• The Customer
• The Process
• The Employee

Dr. Mohamed Fahmy

The Customer

• Customers are the center of any company’s

universe: they define quality. They expect
performance, reliability, competitive prices, on-time
delivery, service, clear and correct transaction
processing and more.

Our customers‟ satisfaction is priority number 1. If we don't keep them

happy, someone else will.
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The Process

• Outside-In Thinking
• By understanding the transaction lifecycle from the customer's
needs and processes, we can discover what they are seeing and
feeling. With this knowledge, we can identify areas where we can
add significant value or improvement from their perspective

Dr. Mohamed Fahmy

The Employee
• Employees must focus their talents and energies on satisfying customers.

• Employees are trained in the strategy, statistical tools and techniques of Six Sigma
quality. Training courses are offered at various levels:

• Quality Overview Seminars: basic Six Sigma awareness.

• Team Training: basic tool introduction to equip employees to participate on Six Sigma
teams.

• Master Black Belt, Black Belt and Green Belt Training: in-depth quality training that
includes high-level statistical tools, basic quality control tools, Change Acceleration
Process and Flow technology tools.

• Design for Six Sigma (DFSS) Training: prepares teams for the use of statistical tools to
design it right the first time.

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Where can Six Sigma be applied?

Service Design
Management

Purchase

Administration Six Sigma Methods

Production

Quality IT
Depart. M&S
HRM

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The Six Sigma Initiative integrates these efforts

Knowledge
Management

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Technical terminology of Six

Sigma Management
• Critical-To-Quality (CTQ): Is a measure of what is important to a customer.

• Defect: Is a nonconformance on one of many possible quality characteristics of a unit that causes

customer dissatisfaction

• Defects per Million opportunities (DPMO): A quality metric often used in the Six Sigma

process. It is calculated by the number of defects observed divided by the number of

opportunities for defects compared to 1 million units.

• Yield: Is the proportion of units within specification divided by the total number of units.

• Rolled Throughput Yield (RTY): Is the product of the yields from each step in a process.

Dr. Mohamed Fahmy

Six-Sigma Metrics –
Measuring Defect Rate

• Defects per unit (DPU) = number of defects discovered  number

of units produced

• Defects per million opportunities (DPMO) = number of defects

discovered  opportunities for error  1,000,000

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Six sigma as metric

Estimating Defect Rate – Process Capability Index (Cp)

• USL/LSL : Upper & Lower Specification Limit

• Cp = (USL –LSL) / (6s)

• Example : Time to process a student loan application (Standard = 26 working

days)

• Specification Limits : 20 to 32 working days

• s : 2 working days

• Cp = (32 – 20)/ (6*2) = 1.00 (Three Sigma)

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Six sigma as metric

Cp Index and DPMO

Cp Index DPMO
1 2,700
1.33 63
1.5 6.8
2 0.002

Dr. Mohamed Fahmy

Six sigma as metric

Estimating Process Capability Index from A Sample - Cpk Index

• XBAR : average outcome from a sample

• S : standard deviation from a sample

• Cpk = min { (USL-XBAR) / (3S), (XBAR-LSL) / (3S) }

• Example : XBAR = 25 days, S = 3 days

• Cpk = min { (32-25)/(3*3), (25-20)/(3*3)}

• = min {0.77, 0.55} = 0.55

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Six sigma as metric

Six-Sigma Quality (Cp =2 with Mean Shifting from the Center)

Ensuring that process variation is half the design tolerance

(Cp = 2.0) while allowing the mean to shift as much as 1.5
standard deviations.

Dr. Mohamed Fahmy

Six sigma as metric

k-Sigma Quality Levels

• Six sigma results in at most 3.4 defects per million

opportunities

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Customer Satisfaction + Efficient Systems = Improved Profitability

‫ ٌٍّؤعغح‬ٌٝ‫ ذؽغٓ االداء اٌّا‬ٝ‫ػاخ اٌر‬ٚ‫ٓ ِٓ اٌّشش‬١‫ػ‬ٛٔ ‫ٕ٘ان‬

:)‫ االػّاي‬ٝ‫عغ ف‬ٛ‫ادج اٌؼائذ ( اٌر‬٠‫ص‬

ُ‫ؼع‬ٚ ‫ؼاخ‬١‫ادج اٌّث‬٠‫ ص‬ٌٝ‫ ا‬ٜ‫ؤد‬٠ ٜ‫ادج سضاء اٌؼالء اٌز‬٠‫ص‬
‫ق‬ٛ‫ضغ اٌششوح تاٌغ‬ٚٚ
• Two types of projects to improve financial performance: :‫ف اٌثضائغ اٌّثاػح‬١ٌ‫ً ذىا‬١ٍ‫ ذم‬
Increase Revenue ―Grow the Business‖
‫ب‬ٛ١‫اٌؼ‬ٚ ‫ً االخرالفاخ‬١ٍ‫ ذم‬
Improve Customer satisfaction, sales, capacity and market position
Decrease the Cost of Goods Sold ‫ٓ اٌّخشظاخ‬١‫ ذؽغ‬
 Reduce variation and defects ً‫ِٕغ ِظذس اٌّشاو‬ٚ ً‫ ٌٍّشاو‬ٜ‫ اٌغثة اٌعضس‬ٍٝ‫ اٌرؼشف ػ‬
 Improve yields
) ًّ‫ش اٌؼ‬١‫اخ ( ع‬١ٍّ‫ اذّرد اٌؼ‬
 Understand root cause of issues and eliminate the source of problems
 Automate process ―workflow‖ ‫اخ‬١‫الذ تاعرخذاَ اعاع‬ٛ‫ً اٌف‬١ٍ‫ذم‬ٚ ‫اخ‬١ٍّ‫ٓ اداء اٌؼ‬١‫ ذؽغ‬
 Improve process performance and reduce waste using lean principles ‫ً اٌفالذ‬١ٍ‫غ ل‬١ٕ‫اٌرظ‬

Dr. Mohamed Fahmy

Reduce Process Variation & Defect Rates

Too Much Variation

Off-Target ‫اختالفات عالٌة‬
‫االنحراف عن الهدف‬

Centered
Center On-Target Reduce
Process Spread
‫الرجوع الى المركز‬ ‫تملٌل االنتشار‬

The objective is to understand customer requirements and reduce process

variation and defects
‫ثح‬١‫إٌّرعاخ اٌّؼ‬ٚ ‫اخ‬١ٍّ‫ اٌؼ‬ٝ‫ً االخرالفاخ ف‬١ٍ‫ذم‬ٚ ‫ ِرطٍثاخ اٌؼّالء‬ٍٝ‫ اٌرؼشف ػ‬ٛ٘ ‫ذف‬ٌٙ‫ ا‬
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Breakthrough and Continuous Improvement

‫التمدم المفاجئ والتحسٌن المستمر‬

Breakthrough Strategy

Six Sigma

Breakthrough 70 %

Improvement Continuous improvement 10 %

% 10 ‫ٓ اٌّغرّش‬١‫اٌرؽغ‬
% 70 ٓ١‫ اٌرؽغ‬ٝ‫ش ف‬١‫ذمذَ وث‬

1 2 3 4 5

Dr. Mohamed Fahmy

Three Emphasis Areas for Six Sigma

‫ثالثة مجاالت للتركٌز فى ستة سٌجما‬

 Focused on product design excellence, design for manufacturability, Customer satisfaction and cost
reduction within all components of the development and new product introduction process.
‫ذ‬٠‫ش إٌّرط اٌعذ‬٠ٛ‫اخ ذط‬١ٍّ‫ٔاخ ػ‬ٛ‫ وً ِى‬ٝ‫ف ف‬١ٌ‫ً اٌرىا‬١ٍ‫ذم‬ٚ ‫سضاء اٌؼّالء‬ٚ ‫غ‬١ٕ‫ُ ِٓ اظً اٌرظ‬١ّ‫اٌرظ‬ٚ ‫ض‬١ّ‫ُ ِٕرط ِٕر‬١ّ‫ ذظ‬ٍٝ‫ ذشوض ػ‬

 Focused on operational excellence, Customer satisfaction and cost reduction within all components of
the operation. Areas of focus include Sales, HR, Finance, Materials, etc.
‫اخ‬٠‫اٌّشرش‬ٚ ‫ؼأد‬١‫ا اٌّث‬ٙ١ٍ‫ذشًّ إٌّاطك اٌّشوض ػ‬ٚ .ً١‫ٔاخ اٌرشغ‬ٛ‫ف ٌىً ِى‬١ٌ‫ً اٌرىا‬١ٍ‫ذم‬ٚ ‫سضاء اٌؼّالء‬ٚ ‫اخ‬١ٍّ‫ض اٌؼ‬١ّ‫ ذ‬ٍٝ‫ ذشوض ػ‬
‫اٌخاِاخ‬ٚ ً٠ّٛ‫اٌر‬ٚ

 Focused on product production excellence, variation and defect reduction, lean production techniques,
Customer satisfaction and cost reduction within all components of the production and delivery process.
‫ح‬١ٍّ‫ػ‬ٚ ‫ٔاخ إٌّرط‬ٛ‫ف ٌىً ِى‬١ٌ‫ً اٌرىا‬١ٍ‫ذم‬ٚ ً١ّ‫سضاء اٌؼ‬ٚ ‫الذ‬ٛ‫ً اٌف‬١ٍ‫اخ ذم‬١‫ع‬ِٕٙ ، ‫ إٌّرط‬ٝ‫ة ف‬١‫اٌّؼ‬ٚ ‫ً االخرالفاخ‬١ٍ‫ذم‬ٚ ‫ض‬١ّ‫ ذشوض أراض ِٕرط ِر‬
ُ١ٍ‫اٌرغ‬
Six Sigma touches on all aspects of the Business Enterprise
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Lean and Six Sigma Success stories

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Project Financial Benefits

Example-1: General Electric

• In 1995 GE mandated each employee to work towards achieving 6 sigma
• The average process at GE was 3 sigma in 1995
• In 1997 the average reached 3.5 sigma
• GE’s goal was to reach 6 sigma by 2001
• Investments in 6 sigma training and projects reached 45MUS$ in 1998, profits increased
by 1.2BUS$

“the most important initiative GE has ever undertaken”.

Jack Welch
Chief Executive Officer
General Electric

Dr. Mohamed Fahmy

MOTOROLA
―At Motorola we use statistical methods daily throughout all of our disciplines to synthesize an
abundance of data to derive concrete actions….
How has the use of statistical methods within Motorola Six Sigma initiative, across disciplines,
contributed to our growth? Over the past decade we have reduced in-process defects by over 300
fold, which has resulted in cumulative manufacturing cost savings of over 11 billion dollars‖*.
‫عح‬ٍِّٛ ‫أاخ العرخالص إظشاءاخ‬١‫فشج ِٓ اٌث‬ٚ ‫غ‬١ّ‫ٕا ٌرع‬٠‫غ اٌرخظظاخ ٌذ‬١ّ‫ ظ‬ٟ‫ا ف‬١ِٛ٠ ‫ح‬١‫ة اإلؼظائ‬١ٌ‫ال ٔغرخذَ األعا‬ٚ‫س‬ٛ‫ذ‬ِٛ ٟ‫ف‬
....
ٟ‫ اٌؼمذ اٌّاض‬ٜ‫ ِذ‬ٍٝ‫ٔا؟ ػ‬ٌّٕٛ ،‫ ِخرٍف اٌرخظظاخ‬ٟ‫ ف‬،‫عّا‬١‫ال عرح ع‬ٚ‫س‬ٛ‫ذ‬ِٛ ‫ح ضّٓ ِثادسج‬١‫ة اإلؼظائ‬١ٌ‫ف عاُ٘ اعرخذاَ األعا‬١‫و‬
" ‫الس‬ٚ‫اس د‬١ٍِ 11 ِٓ ‫ح ألوصش‬١ّ‫ح اٌرشاو‬١‫ف اٌظٕاػ‬١ٌ‫ اٌرىا‬ٟ‫ساخ ف‬ٛ‫ف‬ٚ ٌٝ‫ إ‬ٜ‫ ِّا أد‬،‫ أضؼاف‬300 ِٓ ‫ب أوصش‬ٛ١‫ح اٌؼ‬١ٍّ‫ ػ‬ٟ‫خفضٕا ف‬
Robert W. Galvin
Chairman of the Executive Committee
Motorola, Inc.
*From the forward to MODERN INDUSTRIAL STATISTICS by Kenett and Zacks, Duxbury, 1998

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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

Dr. Mohamed Fahmy

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]

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GE Results from 6 Sigma

6 Sigma Cost $3.5B $3.4B

6 Sigma Productivity $500
Delighting Customers $900
$2.5B

$3.0B

$1.2B $2.5B

$700 $600 $600

$380 $450 $500
$200 $170

Cost Benefit Cost Benefit Cost Benefit Cost Benefit Cost Benefit Cost Benefit

1996 1997 1998 1999 2000 2001

$3.4 Billion in 2001 … Customers & Shareholders Love It!

$ in Millions Unless Otherwise Stated
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Dr. Mohamed Fahmy

Motorola ROI 1987-1994

• Reduced in-process defect levels by a factor of 200.
• Reduced manufacturing costs by $1.4 billion.
• Increased employee production on a dollar basis by 126%.
• Increased stockholders share value fourfold.

AlliedSignal ROI 1992-1996 • $1.4 Billion cost reduction.

• 14% growth per quarter.
• 520% price/share growth.
• Reduced new product introduction time by 16%.
• 24% bill/cycle reduction.

Dr. Mohamed Fahmy

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General Electric ROI

1995-1998
• Company wide savings of over $1 Billion.
• Estimated annual savings to be $6.6 Billion by the year 2000.

Dr. Mohamed Fahmy

Failure models

55

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Past Improvement Activity Failure Modes

Unsuccessful Projects ‫ش ٔاظؽح‬١‫غ غ‬٠‫ِشاس‬

 No clear Management mandate ‫اضؽح‬ٚ ‫ش‬١‫اِش االداسج غ‬ٚ‫ا‬
 No roadmap for the project… not sure where we are going
‫ش‬١‫ٓ ٔغ‬٠‫ ا‬ٌٝ‫ا‬ٚ ٓ‫ٓ ٔؽ‬٠‫ ا‬- ‫ع‬ٚ‫اضؽح اٌّؼاٌُ ٌٍّشش‬ٚ ‫ظذ خطح‬ٛ٠ ‫ال‬
 No dedicated resources ‫ش ِؽذدج‬١‫اسد غ‬ٌّٛ‫ا‬
 No Management and performance review ‫ ِشاظؼح ٌالداء‬ٚ‫ظذ اداسج ا‬ٛ٠ ‫ال‬
 No ability to measure performance and examine effectiveness… not sure if we accomplished
anything
‫ شئ‬ٜ‫ٓ ارا وٕا ٕٔعض ا‬٠‫ش ِراوذ‬١‫غ‬ٚ ‫ح‬١ٍ‫اخرثاس اٌفاػ‬ٚ ‫اط االداء‬١‫ ل‬ٍٝ‫ ػذَ لذسج ػ‬
 No financial ROI during project definition and measurement at completion
‫ االعرصّاس‬ٍٝ‫ ػ‬ٌٝ‫ظذ ػائذ ِا‬ٛ٠‫ ا‬
 No clear answer as to ―why are we doing this project?‖ ‫ٌّارا ٔفؼً رٌه‬--- ‫اضؽح ٌٍغؤاي‬ٚ ‫ظذ اظاتح‬ٛ٠ ‫ال‬

Dr. Mohamed Fahmy

What Makes Six Sigma Work ?

• Select and work on the most important problems and projects to the business and Customer
ً١ّ‫اٌؼ‬ٚ ًّ‫ح ٔظش اٌؼ‬ٙ‫ظ‬ٚ ِٓ ‫ػاخ‬ٚ‫اٌّشش‬ٚ ً‫ اُ٘ اٌّشاو‬ٍٝ‫اٌؼًّ ػ‬ٚ ‫اس‬١‫• اخر‬
• Assure those projects impact customer satisfaction and financial performance
ٌٝ‫ االداء اٌّا‬ٍٝ‫ػ‬ٚ ‫ اٌؼّالء‬ٍٝ‫د ػ‬ٚ‫ا ِشد‬ٌٙ ‫غ‬٠‫• اٌراوذ ِٓ اْ اٌّشاس‬

• Allocate the time to get the work done ًّ‫غّػ تاداء اٌؼ‬٠ ٜ‫لد اٌز‬ٌٛ‫ش ا‬١‫ف‬ٛ‫ذ‬
• Have your best people work on them ‫غ‬٠‫اس افضً اٌؼٕاطش ٌٍؼًّ ترٍه اٌّشاس‬١‫اخر‬
• Provide those individuals with all the training, tools, and resources they need to make the performance
breakthrough ‫ا ٌعؼً اداؤُ٘ خاسق‬ٙٔٛ‫ؽراظ‬٠ ٝ‫اسد اٌر‬ٌّٛ‫ا‬ٚ ‫اخ‬ٚ‫االد‬ٚ ‫ة‬٠‫اِذاد اٌفشق تاٌرذس‬
• Provide Management direction, support and routine review of performance
‫ِشاظؼح االداء ِٓ االداسج‬ٚ ُ‫دػ‬ٚ ٗ١‫ظ‬ٛ‫ ذ‬ٍٝ‫ي ػ‬ٛ‫• اٌؽظ‬
• Require a well thought out, objective and data driven solution
• Verify the dollar savings of your efforts ‫غ‬٠‫ذ تاٌشاس‬ٙ‫ش إٌاذط ِٓ اٌع‬١‫ف‬ٛ‫اٌراوذ ِٓ اٌر‬
• Sustain the benefits of the solution over time ِٓ‫ي ِغ اٌض‬ٍٛ‫ اٌؽ‬ٍٝ‫ائذ إٌاظّح ػ‬ٛ‫ اٌف‬ٍٝ‫اٌّؽافظح ػ‬
Dr. Mohamed Fahmy

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Six Sigma 3 Critical Elements

Defining and using business objectives and metrics that focus our attention on performance
and defects that are most important to the customer and have the greatest potential for
impacting the bottom line
ٍٝ‫ش ػ‬١‫ا اوثش اٌراش‬ٌٙ ٝ‫اٌر‬ٚ ً١ّ‫ّح ٌٍؼ‬ٌّٙ‫ب ا‬ٛ١‫اٌؼ‬ٚ ‫ االداء‬ٍٝ‫ ذشوض أرثإ٘ا ػ‬ٝ‫اعاخ االػّاي اٌر‬١‫ل‬ٚ ‫اعرخذاَ ا٘ذاف‬ٚ ‫ف‬٠‫ذؼش‬
‫إٌرائط‬
Systematic Approach
to improving performance and
Strategic
reducing defects which are
Business &
Quality
important to the Customer
Metrics ‫اعاخ‬١‫ل‬ (qualitative & statistical)
Dedicated resources and ‫منهجية تهدف الى تحسين االداء وتقليل‬
‫دج‬ٛ‫ح ٌٍع‬١‫ع‬١‫اعرشاذ‬
focused infrastructure, ‫االػّاي‬ٚ $ ‫العيىب المهمة بالنسبة للعميل ( كيفية‬
trained in the use of the 6 ) ‫واحصائيا‬
Structured
Sigma problem solving and Infrastructure, Methodology
process improvement Champion, DMAIC
BB & GB ‫ح‬١ٍ‫ى‬١٘ ‫ح‬١‫ع‬ِٕٙ
methodology

Dr. Mohamed Fahmy

Strategic Business and Quality Metrics

CSI, Sales, delivery times, cost per unit, Yield, DPU,

DPMO, customer response times, Web hit rates,
Rework/scrap rates, etc. (Critical Business Elements)

Strategic Business
& Quality Metrics
‫ح‬١‫ع‬١‫اعاخ اعرشاذ‬١‫ل‬
Management objectives and ‫االػّاي‬ٚ ‫دج‬ٛ‫ٌٍع‬
dashboard forms the core of the
strategic Business & Quality
$
Metrics and is flowed down to Structured
other departments and process Infrastructure, Methodology
Champion, DMAIC
areas to provide leading and ‫ح‬١ٍ‫ى‬١٘ ‫ح‬١‫ع‬ِٕٙ
lagging indicators of performance BB & GB

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Lean and Six Sigma Process excelance

60

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Lean and Six Sigma Road map

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Six Sigma DMAIC Road Map

Define ‫ف‬٠‫ذؼش‬
Identify Project, Champion and Project Owner ‫ع‬ٚ‫ش اٌّشش‬٠‫ِذ‬ٚ ٝ‫اٌشاػ‬ٚ ‫ع‬ٚ‫ذ اٌّشش‬٠‫ذؽذ‬
Determine Customer Requirements and CTQs ‫دج‬ٛ‫اٌؼٕاطش اٌؽشظح ٌٍع‬ٚ ً١ّ‫ذ ِرطٍثاخ اٌؼ‬٠‫ذؽذ‬
Define Problem, Objective, Goals and Benefits ‫ا‬٠‫اٌّضا‬ٚ ‫ذفاخ‬ٙ‫اٌّغر‬ٚ ‫اال٘ذاف‬ٚ ‫ذ اٌّشىٍح‬٠‫ذؽذ‬
Define Stakeholder/Resource Analysis ‫اسد‬ٌّٛ‫ً ا‬١ٍ‫ذؽ‬ٚ ‫ذ اطؽاب اٌّظٍؽح‬٠‫ذؽذ‬
Map the Process ‫ح‬١ٍّ‫سعُ اٌؼ‬ Key Analytical Tools
Develop Project Plan ‫ع‬ٚ‫خطح اٌّشش‬
Process Mapping and Modeling
Measure
Determine Critical Xs and Ys ‫ظذ اٌؼاللاخ‬ٚ‫ا‬
Determine Operational Definitions ‫اخ‬١ٍّ‫ػشف اٌؼ‬ Measurement Systems Analysis
Establish Performance Standards ‫ش ٌالداء‬١٠‫س ِؼا‬ٛ‫ط‬ & Process Capability
Develop Data Collection and Sampling Plan ‫أاخ‬١‫غ اٌث‬١ّ‫اورة خطحٌرع‬
Validate the Measurements ‫ذؽمك ِٓ إٌرائط‬
Measurement Systems Analysis ‫اط‬١‫ً ٔظُ اٌم‬١ٍ‫ذؽ‬
Determine Process Capability and Baseline ‫ح‬١ٍّ‫لذسج اٌؼ‬

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Six Sigma DMAIC Road Map

Analyze
Benchmark the Process or Product
Establish Causal Relationships Using Data
Analysis of the Process Map Key Analytical Tools

Determine Root Cause(s) Using Data

Statistical Tests, Modeling & Root
Improve Cause
Design of Experiments Analysis
Develop Solution Alternatives
Assess Risks and Benefits of Solution Alternatives
Validate Solution using a Pilot
Implement Solution
Brainstorming Design of
Determine Solution Effectiveness using Data Experiments, FMEA, & Validation

Dr. Mohamed Fahmy

Six Sigma DMAIC Road Map

Control
Statistical Process Control
Determine Needed Controls (measurement, design, etc.)
Key Analytical Tools
Implement and Validate Controls
Develop Transfer Plan
Statistical Process Control
Realize Benefits of Implementing Solution
Close Project and Communicate Results

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DMAIC

• Define
• Measure
• Analyze
• Improve
• Control

Dr. Mohamed Fahmy

Define

• Define the Customer, their Critical to Quality (CTQ)

issues, and the Core Business Process involved.
• Define who customers are, what their requirements
are for products and services, and what their
expectations are
• Define project boundaries (scope) the stop and start
of the process
• Define the process to be improved by mapping the
process flow

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Measure
• Measure the performance of the Core Business Process
involved.
• Develop a data collection plan for the process
• Collect data from many sources to determine types of
defects and metrics
• Compare to customer survey results to determine shortfall

Dr. Mohamed Fahmy

Analysis
• Analyze the data collected and process map to determine
root causes of defects and opportunities for improvement.
• Identify gaps between current performance and goal
performance
• Prioritize opportunities to improve
• Identify sources of variation

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Improve

• Improve the target process by designing creative solutions to

fix and prevent problems.
• Create innovate solutions using technology and discipline
• Develop and deploy implementation plan

Dr. Mohamed Fahmy

Control

• Control the improvements to keep the process on the new

course.
• Prevent reverting back to the "old way"
• Require the development, documentation and
implementation of an ongoing monitoring plan
• Institutionalize the improvements through the modification
of systems and structures (staffing, training, incentives)

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74

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Process Flow for achieving 70%+ Improvement

Champion
Select project that is Review
Review and Authorize Communicate
considered critical to performance and
approve solutions process and celebrate
operational success assure results
change results

3 sigma:
Black Belt
Develop alternative
Form team and follow Determine
solutions and complete
DMAIC for project financial benefit
benefit and risk assessment
management

Process or Implement and

Product Understand root cause of Validate
standardize process
problem Solution
changes

For a breakthrough to occur… everything is on the table

Dr. Mohamed Fahmy

Six Sigma Results

Improved Customer satisfaction

• Assure products and services meet customer requirements
Improved quality, efficiency and cost of goods sold
• Waste, defect and variation reduction
• Financial savings (hard and soft)
Self-sustaining infrastructure
• Defined roles and responsibilities
• Empower Champions, Black Belts and all employees to make meaningful
improvements in performance
• Communication
Commonality
• Language, training materials, tools & software
• Methodology
• Expectations
• Solutions
• Financial tracking (establish, maintain metrics)

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Foundation of Lean 6 Sigma

 If you cannot express what you know in numbers,

you don’t know much about it;
‫ه‬٠‫عؼه ِؼشفح ِا ٌذ‬ٛ‫ْ ت‬ٛ‫ى‬٠ ٌٓ َ‫ه تاالسلا‬٠‫غ اْ ذؼثش ػّا ٌذ‬١‫ارا ٌُ ذغرط‬ •

 If you don’t know much about it, then you can’t control it;
‫ه‬٠‫ّا ٌذ‬١‫غ اْ ذرؽىُ ف‬١‫ ٌُ ذؼشف ػّا ذّرٍه – ٌٓ ذغرط‬ٌٛ 

 If you can’t control it,

you are at the mercy of chance.
‫ شئ فأد ذؽد سؼّّح اٌظذفح‬ٝ‫غ اٌرؽُ ف‬١‫ارا ٌُ ذغرط‬ٚ

-Dr. Mikel Harry

Motorola

80

Dr. Mohamed Fahmy

Foundation of Lean 6 Sigma

Definitions of Insanity?

81

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Foundation of Lean 6 Sigma

Definitions of Insanity:

Doing the same thing over and over and expecting a

different outcome!

AND

Using the same logic to get out of the trouble that got you
there in the first place!

-Albert Einstein

82

Dr. Mohamed Fahmy

Why Aim as High as 6 Sigma?

•Even at 99% quality (equivalent to a sigma level of 3.8), there would be:

•At least 200,000 wrong drug prescriptions per year

•Unsafe drinking water almost 10 hours each month

•Two short or long landings at O’Hare airport each day

•Over 90,000 wrong felony convictions per year

•20,000 lost or incorrectly delivered articles of mail per hour

83

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Lean Six Sigma Timeline

Deming
Guinness Brewery Shewhart 14 Points
Introduces SPC 7 Deadly Diseases

1900 1930 1950

Ford Gilbreth, Inc. Toyota Production System
Assembly Line Management
Theory
Industrial
Engineering

Dr. Mohamed Fahmy

Lean Six Sigma Timeline

Motorola Introduces Six AlliedSIgnal

Sigma GE Adapt LSS to Business
SPC TQM Processes

1980 1990 2000

Just – in–Time Lean Mfg.

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86

Dr. Mohamed Fahmy

What Makes a Good Six Sigma Project?

‫ذ ؟‬١‫ع ظ‬ٚ‫عّا ِشش‬١‫ع عرح ع‬ٚ‫عؼً ِشش‬٠ ٜ‫ِا اٌز‬

• There is no known solution

‫ف‬ٚ‫ظذ ؼً ِؼش‬ٛ٠ ‫ ال‬
• The root cause is not known
ٞ‫ؼشف اٌغثة اٌعزس‬٠ ‫ال‬ٚ 
• The problem is complex and needs statistical analysis
ٟ‫ً اإلؼظائ‬١ٍ‫ اٌرؽ‬ٌٝ‫ذؽراض إ‬ٚ ‫ اٌّشىٍح ِؼمذج‬
• The problem is part of a process
‫ح‬١ٍّ‫ ظضء ِٓ ػ‬ٟ٘ ‫ اٌّشىٍح‬
• The process is repeatable
‫ ذىشاس‬ٟ٘ ‫ح‬١ٍّ‫ ٘زٖ اٌؼ‬
• A defect can be defined
‫ة‬١‫ف ػ‬٠‫ّىٓ ذؼش‬٠ 
• Project will take 3-6 months
‫ش‬ٙ‫ أش‬6-3 ‫غرغشق‬١‫ع ع‬ٚ‫اٌّشش‬ٚ 
• There are data available
‫أاخ ِراؼح‬١‫ ٕ٘ان ت‬

Dr. Mohamed Fahmy

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Why Use Lean Six Sigma?

• LSS is the CPI industry standard
‫اخ‬١ٍّ‫ٓ اٌّغرّش ٌٍؼ‬١‫ح ٌٍرؽغ‬١‫ح طٕاػ‬١‫ع‬ِٕٙ ٝ٘ ‫عّا‬١‫ٓ عرح ع‬١ٌ •
:‫ذؽمك‬  US DoD
 Increase throughput ‫ادج إٌاذط‬٠‫ص‬  Fannie Mae  Wells Fargo
 Bank Of America  Robert Half
 Intuit  Fifth Third Bank
 Shorten cycle times ‫اخ‬١ٍّ‫ً صِٓ اٌؼ‬١ٍ‫ذم‬  AXA Equitable  CitiGroup
 Reduce defects ‫ب‬ٛ١‫ً اٌؼ‬١ٍ‫ذم‬  United Health Group
 Cardinal Health
 Lower costs ً‫ف ال‬١ٌ‫ذىا‬  Blue Cross
 Maytag
 Praxair  Providence Health
 Ford  Home Depot
 Air Products
 Siemens  Honeywell
 Siebe Foxboro  Compaq  Johnson Controls
 Lockheed Martin  Seagate  Johnson & Johnson
 Motorola  Bombardier  PACCAR
 ABB  John Deere  Toshiba
 TI  Whirlpool  DuPont
 IBM  GenCorp  Dow Chemical
 DEC  Nokia
 Kodak  Sony
 AlliedSignal
 GE

1992 88
1995 2000 2010
Dr. Mohamed Fahmy

Where Are Businesses Today?

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•Experts think most businesses fall

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between 3 - 4 sigma
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100000
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89

Dr. Mohamed Fahmy

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What else is Six Sigma?

Cultural Change
Organizational Issue Traditional Approach
Problem resolution ً‫ؼً اٌّشاو‬ Six Sigma Approach ‫عّا‬١‫ظٗ عرح ع‬ٛ‫ذ‬
Fixing symptoms ‫د اٌؼشع‬١‫ذصث‬
Preventing causes ‫ز‬ٚ‫ِٕغ ؼذ‬
Behavior ‫ن‬ٍٛ‫ع‬ Reactive ً‫سدج فؼ‬
Proactive ٝ‫اعرثال‬

Decision making ‫اذخار اٌمشاس‬ Experience-based ‫ اٌخثشج‬ٍٝ‫ ػ‬ٕٝ‫ِث‬ Data-based ‫أاخ‬١‫لاػذج ت‬

Process adjustment ‫ح‬١ٍّ‫ً اٌؼ‬٠‫ذؼذ‬ Tweaking

Controlling ُ‫ذؽى‬

If time permits ‫لد‬ٌٛ‫ عّػ ا‬ٌٛ Mandated ٝ‫اعاع‬

Employee training ٓ١ِ‫ة اٌؼا‬٠‫ذذس‬
Empowered teams ‫اخ‬١‫ا طالؼ‬ٌٙٚ ‫ٌح‬ٛ‫فشق ِخ‬
Hierarchy ‫ح‬١ٍ‫ى‬١٘
Chain of Command ‫ادج‬١‫عٍغٍح اٌم‬
Benchmarking & metrics‫ظ‬١٠‫اٌّما‬ٚ ْ‫اط اٌّماس‬١‫اٌم‬
Firefighting ‫ٔظاَ اطفاء اٌؽشائك‬
Direction ‫ اٌرظشفاخ‬ٚ‫االذعا٘اخ ا‬
Dr. Mohamed Fahmy 90

Six Sigma Basic Premise

Outputs Inputs
(CTQ)

Do you know what is important to customers?

Do you know what ―Xs‖ are important to
meet customer needs?
How do the ―Xs‖ drive outcomes,
revenue, and cost?
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Six Sigma Basic Premise

Outputs Inputs
(CTQ)

 Six Sigma is about improving what is important or ―critical to the customer and quality )CTQ(.‖ Y is the
measurement of the CTQ that needs to be improved to meet customer needs.
 Once you understand what the Ys are, (those things critical to customers and quality), measure them and
compare them to the targets. Understand the process characteristics that may cause variation and then
reduce this variation by controlling the process variables. These process variables are called the Xs.
 There may be many Xs that can affect the Y.
 This simple equation is used to help communicate what a project is trying to accomplish. If Y is a function
of X, then identify the Xs with enough precision to first improve them and then control them. Once Xs are
maintained, the Y will be met.
Dr. Mohamed Fahmy

Fundamental Principle of LSS

We know we must change Xs to create a change in Y… ‫نحن نعلم اننا يجب ان نغير اكس‬
‫اليحداث تغيير فى واى‬
•  But how do we know which Xs to change and how to change them?
• ‫لكن من يدرينا اى اكس يمكن تغييرها وكيف يتم تغييرها‬

key process and input factors

process output is a function of that cause variation in the output
‫مخرجات العملية‬ x ‫دالة فى‬

y = f (x1, x2, …(

93

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Methods of Six Sigma

Six Sigma uses 2 phase models
for improvements:
• DMAIC
• DMADV (= DfSS)

Dr. Mohamed Fahmy

Lean Six Sigma: A Powerful Methodology (DMAIC)

Define Measure Analyze Improve Control

• what is important the process:

to the customer: the process gains:
Analyze Data
• Project Selection Ensure Solution is
Identify Root Sustained
• Team Formation Causes
• Establish Goal
the process performance measures:
how well we are doing: Prioritize root causes
Collect Data Innovate pilot solutions
Construct Process Flow Validate the improvement
Validate Measurement System 95

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The Tools and Techniques

Define Measure Analyze Improve Control

 Affinity Diagram  DFSS

 Benchmarking  Confidence Intervals
 FMEA  Brainstorming  DOE
 Measurement System  Control
 IPO Diagram Analysis  Cause & Effect Diagram Kanban Charts
 Kano’s Model  Nominal Group Technique T-test F-test  Mistake Proofing
 Control Plan
 Knowledge Based Mgt  Standard Work
 Pairwise Ranking  Fault Tree Analysis
 Project Charter  Reaction Plan
 Physical Process Flow  FMEA  Takt Time
 SIPOC Model  Run Charts
 CP-Analysis  Histogram  Theory of Constraints
 Quality Function
 Standard
 Historical Data Analysis  TPM
Deployment
 VSM
 Voice of Customer Operating
 Waste Analysis  Pareto Chart  Visual Management
 Task Appraisal / Task
Procedures
Summary  Regression Analysis  Work Cell Design
 Value Stream Mapping  Scatter Diagram  5S
 Workplace 96

Organization
Dr. Mohamed Fahmy

The DMAIC Road Map...

Control
Analyse • Quality Control Chart
• Process Analysis • Documentation
• Stratification • Monitoring
• Regression
• ANOVA
• Hypothesis-tests
Not just an assortment of tools, but • Design of Experiment
what to do at each step of the
improvement process. Innovative
Improvement
• Select Solutions
• Risk Analysis
• Piloting
Measure • Planning
• Data Collection Plan
Define • Gage Repeatability &
• Benefits Reproducibility
• Project Charter • Display data Imagine the synergy that can occur when
• Voice Of Customer • Process Capability Analysis
everyone follows the same approach!
• Process Description

Six Sigma EUROPE - 97

[Link] October
2003 Dr. Mohamed Fahmy

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Six Sigma Team

There are a total of five levels in the six sigma team:

 They lead change and provide direction

Top Executives  They own the Six Sigma initiatives

 They identify and scope projects, and develop strategy

Champions
 They also identify and coach master black belt

Master Black Belt  They train and coach black belts, green belt, and
 Various functional leaders of the organization

Black Belt  They apply strategies to specific projects, and lead and
direct teams to execute projects.

Green Belt  They support the black belt employees by working on the

98
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From Six Sigma to Lean Six Sigma

History

Total Quality Management

Lean Manufacturing / Management

Six Sigma (Motorola, GE)
(Toyota)
Striving for dramatic revolutions by Striving for continuous improvement.
means of projects.
Focus on improving output precision. Focus on reduction of product stocks
and process waste.
Goal: Reducing cost of bad quality. Goal: Short cycle times and just in
time production and service.

Lean Six Sigma

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Methods of Six Sigma

Six Sigma uses a special role model with
popular certifications:

Six Sigma Champions: Six Sigma Master Black

Project sponsors Belts:
and mentors Full-time program managers,
PMO heads and educators
Six Sigma Black Belts: Six Sigma Green Belts:
Full-time project Part time project
managers coordinators and
assistants
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Roles and responsibilities in Six

Sigma Management
• Senior Executive
– Provides the impetus, direction & alignment necessary for Six Sigma ultimate
success. Senior Executive should:
1. Study Six Sigma management
2. Link company’s objectives to Six Sigma projects
3. Champion Six Sigma projects
4. Constantly review Six Sigma projects progress

• Executive Committee Member

– They are the top management of an organization. Executive Committee Members
should:
1. Deploy Six Sigma throughout the organization
2. Prioritize and manage Six Sigma portfolio
3. Assign champion, BB and GB to Six Sigma projects
4. Remove barriers to Six Sigma management
5. Provide resources for Six Sigma management
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Roles and responsibilities in Six

Sigma Management
• Champion
• Take a very active sponsorship and leadership role in conducting and implementing
Six Sigma projects. Champions should:
1. Identify the project on the organizational dashboard
2. Provide an ongoing communication link between the project team and Executive committee
3. Keep the team focused on the project by providing direction and guidance
4. Assure that Six Sigma methods and tools are being used in the project

• Master Black Belt

– Takes a leadership role as keeper of the Six Sigma process and advisor to
executives or business unit managers. Master Black Belt should:
1. Counsel senior executives and business unit managers on Six Sigma management
2. Continually improve and innovate the organization’s Six Sigma process
3. Apply Six Sigma across across both operations and transactions-based process
4. Mentor Green Belts and Black Belts

•
Dr. Mohamed Fahmy

Roles and responsibilities in Six Sigma Management

• Black Belt
– Is a full time change agent and improvement leader. Black Belts should have the
following characteristics:
1. Technical and managerial process improvement/innovation skills
2. Understand the psychology of individuals and teams
3. Not intimidated by upper management
4. Has a customer focus

– The responsibilities of a Black Belt include:

1. Communicate with the champion and process owner about progress of the
project
2. Help team members design and analyze experiments
3. Provide training in tools and team functions to project team members
4. Coach Green belts leading projects limited in scope

•
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Roles and responsibilities in Six Sigma Management

• Green Belt
– Is an individual who works on projects part time, either as a team member for
complex projects or as a project leader for simpler projects. Green Belts have the
following responsibilities:
1. Define & review project objective with project’s champion
2. Facilitate the team through all phases of the project
3. Analyze data through all phases of the project
4. Train team members in the use of Six Sigma tools and methods through all phases
of the project
• Process Owner
– Is the manager of a process. The process owner should be identified and involved
in all Six Sigma projects relating to the process owner area. A process owner has
the following responsibilities:
1. Empower employees to follow and improve best practice methods
2. Accept and manage the improved process after completion of the Six Sigma project
3. Understand how the process works, the capability of the process, and the
relationship of the process to other processes in the organization

Dr. Mohamed Fahmy

•

Gains From six sigma projects applications:

: ٝ٘ ‫عّا‬١‫غ عرح ع‬٠‫ك ِشاس‬١‫عح ذطث‬١‫ائذ ٔر‬ٛ‫اُ٘ اٌؼ‬

Increased Revenue: ‫ادج اٌؼائذ‬٠‫ص‬

Avoided Costs: ‫ف‬١ٌ‫ذعٕة ذىا‬

Reduced Costs: ‫ف‬١ٌ‫ً اٌرىا‬١ٍ‫ذم‬

Non-Monetary Benefits: Common examples of such benefits are as follows: ‫ح‬١ٌ‫ش ِا‬١‫ا غ‬٠‫ِضا‬

 Increased customer satisfaction ‫ادج سضاء اٌؼّالء‬٠‫ص‬

 Increased employee satisfaction ‫ادج سضاء ايعاملٌن‬٠‫ص‬

 Improvement in the reputation of the firm etc ‫ اٌششوح‬ٍٝ‫ اٌطٍة ػ‬ٝ‫ٓ ف‬١‫ذؽغ‬

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6 Sigma vs Cost of Poor Quality

30% 2σ

25%
3σ
20%
4σ
Cost of Poor 15%
Quality 5σ
10%

5%
6σ
0%

68% 93% 99.4% 99.99% 99.9997%

Percent Defect Free
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Module One Section Two

Lean overview

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Leaning objectives

Why lean ?

What lean is and is not

History of lean

Tools of lean

Philosophies of lean

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What is lean ?
Lean is an Operational Excellence strategy that enables you to change for better

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Why Toyota Production system TPS

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Overview on the Toyota Performance

Toyota profit 8.3 times higher than the industry average

‫ح‬١‫عظ اٌظٕاػ‬ٛ‫ ِٓ ِر‬ٍٝ‫ اػ‬8.3 ‫ذا‬ٛ٠ٛ‫ استاغ ذ‬
Their profit is larger than the combined Chrysler, GM, and Ford.
‫سد ِؼا‬ٛ‫ف‬ٚ ُ‫ ظ‬ٚ ‫ضالس‬٠‫ع استاغ وش‬ّٛ‫ ِٓ ِع‬ٍٝ‫ا اػ‬ٙ‫ استاؼ‬
The return on asset is 8 times higher than the industry average.
‫عظ اٌظٕاػح‬ٛ‫ اضؼاف ِر‬8 ‫ي‬ٛ‫ االط‬ٍٝ‫اٌؼائذ ػ‬
The company has made a profit every year over the last 25 years and
has 20$-30$ billion in its cash war chest on a consistent basis.
4

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Toyota has for decades been the number one automaker in Japan and distance fourth
behind the big 3 automakers in North America.
 But in AUG 2003, for the first time, Toyota sold in North America more than one of the 3
big automakers (Chrysler).

 In 2003, Toyota sell more vehicles in the US than either of the two brand names that have
led US in the last 100 years—Ford and Chevrolet.

 Camry was top-selling US passenger car in 2003.

 Corolla was the top-selling small car in the world.
 Toyota became the leader in producing luxury cars when they
introduced the Lexus firstly in 1989.
 Toyota invented the lean production, known inside Toyota as TPS

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Toyota Production System: ‫ذا‬ٛ٠ٛ‫ٔظاَ أراض ذ‬

•Toyota Production System: ‫ذا‬ٛ٠ٛ‫ٔظاَ أراض ذ‬

•Operations Management System to: ‫اخ‬١ٍّ‫ٔظاَ اداسج ػ‬
•achieve goals ‫ؽمك اال٘ذاف‬٠
•highest quality ‫ح‬١ٌ‫دج ػا‬ٛ‫تع‬
•lowest cost ‫الً ذىٍفح‬
•shortest lead time ‫الً صِٓ أرظاس‬
•engaging people toward goals. ‫ك اال٘ذاف‬١‫ ذؽم‬ٝ‫ف‬ ٓ١ٍِ‫اششان اٌؼا‬

6
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Toyota Production System: ‫ذا‬ٛ٠ٛ‫ٔظاَ أراض ذ‬

People Management ‫االدارة‬
 True North‫الشمال الحمٌمى‬
TECNICAL
 Tools to focus
 JIT management attention
 Go and See ‫اذهب الى المكان‬
 Jidoka ‫التشغٌل االلى‬
 Problem solving‫حل المشكالت‬
 Kaizen ‫التحسٌن‬  Presentation skills ‫مهارات‬
 Long-term asset Learned Skills ‫العرض‬
 Heijunka ( Production
 Project management ‫ادارة‬
leveling or smoothing )  Machinery depreciates Loses Values ‫المشروعات‬
 Supportive culture ‫ثمافة الدعم‬
 Stability ‫استمرار‬
 People appreciate Continue to grow
‫بمعنى المدرة على انتاج منتج مع الزمن‬

PHILOSOPHICAL ‫فٍغفاخ‬
‫تحسس االلة للمشكلة والتولف‬  Philosophy/Basic Thinking
‫الفورى‬  Customer First ‫العمٌل اوال‬
 People are the most important asset
‫تولف االلة بعد التنفٌذ للعملٌة‬   Kaizen ‫التحسٌن‬
‫بشكل الى‬  Go and See Focus on Floor ‫اذهب وشوف‬
 Give feedback to team members and earn respect
 ‫اعطاء تغذٌة راجعة لالعضاء ٌكسب احترامهم‬
 Efficiency Thinking ‫كفاءة التفكٌر‬ 6
 True (vs. apparent ) condition ‫الحمٌمة والمظهر‬
 Total (vs. individual) team involvement ‫اشران االفراد‬
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History of lean manufacturing‫تارٌخ التصنٌع الرشٌك‬

• First comprehensive implementation:
– 63% annual growth in stock value (not counting dividends)
‫ زيادة فى قيمة الشركة دون احتساب االرباح‬% 63 –
– 7.2% annual wage growth
% 7.2 ‫زيادة فى المرتبات‬ –

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Toyota Production System = Operations

Management System to achieve goals with:
1- highest quality, 2- lowest cost
3- shortest lead time 4- engaging people
toward goals.
‫نظام انتاج توٌوتا = هو نظام ادارة العملٌات الذى ٌهدف الى تحمٌك‬
‫الل تكلفة‬-2 ‫ باعلى جودة‬-1 :‫االهداف‬
‫ اشران الناس فى تحمٌك االهداف‬-4 ‫ الل ولت انتظار‬-3 6

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Hare ‫ارنب‬
Doze ‫ٌنام ٌنعس‬

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Overview
• Lean removes all forms of waste from the value stream.
• ‫ٌزٌل التصنٌع الرشٌك كل اشكال الفوالد من مسار خرٌطة تدفك المٌم‬
• The chief obstacle is the fact that waste often hides in plain
sight, or is built into activities.
• ‫العمبة الرئٌسٌة هى حمٌمة ان الفوالد غالبا تختفى من مرائ الجمٌع او انها مبنٌة داخل االنشطة‬
‫نفسها‬

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Benefits of Lean Manufacturing

• Lean manufacturing delivers an insurmountable competitive

advantage over competitors.
• ‫التصنٌع الرشٌك ٌنشئ مٌزة تنافسٌة ال ٌمكن التغلب علٌها من المنافسٌن‬

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The Origin of Lean Manufacturing

Who created the Toyota Production

System?

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Lean: Made in the USA

• Scientific management (Taylor) and motion efficiency

(Gilbreth)
• Explicit purpose (1911): make the high-wage American
worker competitive with cheap labor.
• First systematic large-scale deployment…

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What Is lean ?

 Way of working ‫طرٌمة للعمل‬  Production system ‫نظام انتاجى‬

 Philosophy ‫فلسفة‬  Strategy ‫استراتٌجٌة‬
 Approach to improvement  Eliminating waste ‫منع الفوالد‬
 ‫منهجٌة للتحسٌن‬  System for understanding
 Systems thinking ‫نظام للتفكٌر‬  Mind-set
 Culture ‫ثمافة‬  Values ‫لٌم‬
 Quality system ‫نظام للجودة‬  Management system ‫نظام‬
 Way of life ‫طرٌمة للحٌاة‬ ‫لالدارة‬
 Method  Tool box ‫صندوق لالدوات‬
 Whiteboards ‫سبورات بٌضاء‬

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…at the Ford Motor Company

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Origin of the TPS ‫بداٌة نظام انتاج توٌوتا‬

• Taiichi Ohno said openly that he got the idea from Henry Ford's
books and the American supermarket.
‫• لال اوهنو انه استمى الفكرة من كتاب فوررد والسوبرماركت االمرٌكى‬
– Ford's My Life and Work (1922) describes just-in-time (JIT),
DFM, and other lean concepts explicitly.
‫– شرح فورد فى كتابه حٌاتى والعمل التصنٌع فى الولت والتصمٌم من اجل االنتاج‬
– Results depend on organizational behavior as well as
technology.
‫– النتائج تعتمد على طبٌعة سلون المؤسسة والتكنولوجٌا المستخدمة‬

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Labor Relations and Lean ‫عاللات العمال‬

‫والتصنٌع الرشٌك‬
• Ford (1922): "It ought to be the employer's ambition, as leader,
to pay better wages than any similar line of business, and it
ought to be the workman's ambition to make this possible.«
• ‫ ٌجب ان ٌكون طموح اى صاحب عمل كمائد هو ان ٌدفع لعماله مرتبات‬:‫ لال‬1922 ‫فورد عام‬
‫اعلى من مثٌالتها فى نفس طبٌعة االعمال الماثلة كما ٌجب ان ٌكون العمال عندهم نفس‬
.‫الطموح لجعل ذلن ممكنا‬
– Everything you need to know about ILR in one sentence.
– ‫كل ما علٌن معرفته حول العاللات الصناعٌة فى جملة واحد ة‬

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Ford on Labor Relations

(1) Labor must recognize that no job can pay more in
wages and benefits than it creates in value.
‫• ٌجب ان ٌالحظ العمال انه الٌوجد عمل ممكن ان ٌدفع مرتبات ومزاٌا اكثر من المٌم‬
‫التى ٌنتجها‬
(1) Managers who seek to pay less than the job is worth
lose the commitment of their workforce.
‫ المدٌرون الذٌن ٌسعون لدفع مرتبات الل من لٌمة العمل ٌفتمدون التزام الموى‬
‫العاملة‬
– F.W. Taylor as well as Ford said this.
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Make the Job Worth More ‫جعل العمل ذات لٌمة‬

‫اعلى‬
• Labor ‫العمال‬
– Look for improvement opportunities ‫ٌبحثون عن فرص احسن‬
– No restrictive union work rules ‫ال توجد لواعد ممٌدة للعمل النمابى‬
• Management ‫المدٌرون‬
– Pay more when the job is worth more. ‫ادفع اعلى عندما ٌكون العمل لٌمته اعلى‬
– No layoffs when productivity improves!
– ‫ال تسرٌح للعمالة عندما تتحسن االنتاجٌة‬

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What is Lean Manufacturing?

• Learning to see waste

• ‫تعلم رؤٌة الفوالد‬

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What is Lean Manufacturing?

• A systematic approach to the identification and elimination all

forms of waste from the value stream.
• ‫منهجٌة منظمة لتحدٌد وازالة كل اشكال الفوالد من مسار تدفك المٌم‬

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Concept of Friction, Waste

• Understanding of friction, waste, or muda is the

foundation of Lean Manufacturing.
• ‫فهم (المماومة) او الفوالد هو االساس لمنهجٌة التصنٌع الرشٌك‬

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JIT/lean streamlines production

Traditional Flow Production Process

‫التدفك النمطى‬ ‫ح‬١ّ١ٍ‫ح اٌرؼ‬١ٍّ‫اٌؼ‬
(stream of water)

Suppliers
Customers
‫المورد‬
Flow with JIT
Inventory (stagnant ponds)
‫اٌرذفك‬
Material
(becomes like
Suppliers water in stream)

‫الموردٌٌن‬ Customers
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‫اٌؼّالء‬
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Waste Often Hides in Plain View

‫النفاٌات تختفى فى كثٌر من االحٌان مع كونها واضحة‬

• We cannot eliminate the waste of material, labor, or other

resources until we recognize it as waste.
• ‫ال ٌمكننا التخلص من الفوالد من الخامات او العمالة او الموارد الخرى اال لو الحظناها انها‬
‫فوالد‬
– A job can consist of 75 percent waste (or even more).
– ‫ فالد او اكثر‬% 75 ‫العمل ممكن ان ٌتكون من‬
• Classic example: brick laying in the late 19th century
• ‫مثال رص الطوب فى عملٌة البناء فى نهاٌة المرن التاسع عشر‬

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Waste is Often Built Into Jobs

‫فى الغالب الفوالد مبنٌة داخل الوظائف‬

Pre-Gilbreth Bricklaying
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Another Example: Fabric Folding

‫عملٌة تصنٌع الملف‬

Redesign of this job to eliminate the need to

walk doubled its productivity. We will see that
material waste also hides in plain sight.
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Material Waste Hides in Plain Sight

‫فوالد خامات مختفٌة مع انها على مرائ الجمٌع‬
Clean parts
Dirty parts ‫اجزاء نظٌفة‬
‫اجزاء متسخة‬

Clean Clean
Water Water
‫مٌاه نظٌفة‬ Cleaning Cleaning ‫مٌاه نظٌفة‬
Tank 1 ‫تانن‬ Tank 2
1 ‫تنظٌف رلم‬ Discard water 2 ‫تانن رلم‬
‫مٌاه خارجة‬
The parts get clean, so no one questions this. What is
wrong with this picture?
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Spin Coating of Semiconductor Wafers

‫عملٌة الطالء بالرش لرلائك من اشباه الموصالت‬

The product is the coated wafer, and "the job has always been done this way" in the
semiconductor industry. Shigeo Shingo: "Paint parts, not air.«
‫طالخ‬ٌّٛ‫ طٕاػح اشثٗ ا‬ٝ‫مح ف‬٠‫زٖ اٌطش‬ٙ‫رُ ت‬٠ ‫ح – اٌؼًّ دائّا‬١ٍ‫ اٌششائػ اٌّط‬ٛ٘ ‫إٌّرط‬
‫اء‬ٌٛٙ‫ إٌّرط اَ ا‬ٍٝ‫ ً٘ ٔؽٓ ٔط‬: ٛ‫ٕع‬١‫ا ش‬ٛ‫ع‬١‫لاي ش‬
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Lessons so far ‫الدروس‬

• Waste often hides in plain view. ‫الفوالد غالبا تختفى مع انها امامنا‬
– People become used to "living with it" or "working around
it.«
– ‫الناس تعودوا على الحٌاة مع وجودها او العمل معها‬

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TPS Definitions of Waste

‫تعرٌف نظام توٌوتا للفوالد‬

• Overproduction ‫االنتاج الزائد‬

– Over-ordering  50-75% off after Christmas. Automobile
incentives.
• Waiting ‫االنتظار‬, including time in queue
• ‫بما فى ذلن الولوف فى الطابور‬
• Transportation ‫( النمل‬between workstations, or between supplier
and customer)
• ‫مابٌن محطات العمل او بٌن المورد والعمٌل‬

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TPS Waste, Continued

• Non-value-adding activities ‫انشطة لٌس لها لٌمة مضافة‬

• Inventory ‫التخزٌن الزائد‬
• Waste motion ‫الحركة‬
• Cost of poor quality ‫تكلفة الجودة السٌئة‬
– 30 to 60 cents of every health care dollar

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Waiting as a Form of Waste

• Of the total cycle time or lead time, how much involves value-
adding work and how much involves waiting?
• ‫من دورة االنتاج ما نسبة االنشطة ذات المٌم المضافة‬

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Jidoka ‫التشغٌل االلى مع لمسة بشرٌة‬

• initially Jidoka began its life with the invention by Sakichi Toyoda in 1896 of a
simple device that could stop the shuttle on an automatic loom if the thread broke.
This meant that it prevented the machine from not only creating defects but also
alerted the operator to a problem which meant that one operator could now operate
several looms rather than have to stand there watching just one in case something
went wrong. This principle became known as Autonomation or automation with a
human touch.
• ‫ي البداٌة بدأت‬Jidoka ‫ من جهاز بسٌط ٌمكن أن تولف المكون على‬1896 ‫مع اختراع من لبل ساكٌشً توٌودا فً عام‬
.‫النول اآللً إذا حدثت مشكلة‬
• ‫وهذا ٌعنً أنه منع الجهاز من خلك لٌس فمط العٌوب ولكن أٌضا نبهت المشغل لمشكلة مما ٌعنً أن مشغل واحد ٌمكن أن‬
.‫تعمل اآلن عدة ٌلوح بدال من أن تمف هنان ٌرالب واحدة فمط فً حال حدث خطأ ما‬
• .‫أصبح هذا المبدأ المعروف باسم جٌدوكا أو التشغٌل اآللً مع لمسة انسانٌة‬

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Difference between traditional and lean systems

‫الفروق بٌن التصنٌع النمطى والرشٌك‬
Factors Traditional system lean manufacturing system

1 Inventory ْٚ‫اٌّخض‬ An asset ‫ي‬ٛ‫اط‬ A liability ‫ح‬١ٔٛ٠‫ِذ‬

2 Lot ‫ ٌالٔراض‬ٌٝ‫ؼعُ ػا‬ Formulas ‫العادى‬ Immediate ‫ فمظ‬ٝٔ‫اض ا‬١‫اؼر‬
size needs only
3 Setups Low priority issue Highest priority issue
4 Queues ‫ش‬١‫ات‬ٛ‫اٌط‬ Necessary investments for Eliminate them ‫ِٕغ‬
operations to continue

5 Quality Tolerate some scrap Zero defects

6 Vendors Multiple sources Coworkers, part of team
7 Maintenance As required , not critical Constant and effective
8 Lead times The longer the better The shorter the better
9 workers A part
Dr. Mohamed of the
Fahmy system An asset , the most
important

Lean

Produce more with less

 Shorter cycle time
• Less Time
 Higher Quality
• Less Inventory
 Excellent Customer Service
• Less Capital
 Lower Production Cost
• And Fewer resorses

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Benefits of lean manufacturing system ( JIT) ‫مزاٌا‬

‫التصنٌع الرشٌك‬
►reduced inventory level ْٚ‫ اٌّخض‬ٜٛ‫مًٍ ِغر‬٠ 
►high quality ٍٝ‫دج اػ‬ٛ‫ظ‬ 
►flexibility ‫ٔح‬ٚ‫ِش‬ 
►reduced lead times ‫لد االٔرظاس‬ٚ ً١ٍ‫ذم‬ 
►increased productivity ‫ح‬١‫ادج االٔراظ‬٠‫ص‬ 
►increased equipment utilization ‫ادج اعرخذاَ اٌّؼذاخ‬٠‫ص‬ 
►reduced scrap and rework ‫غ‬١ٕ‫اػادج اٌرظ‬ٚ ‫ذس‬ٌٙ‫ً ا‬١ٍ‫ذم‬ 
►reduced space requirements ‫ح‬١ٔ‫ً ِرطٍثاخ ِىا‬١ٍ‫ذم‬ 
►pressure for good vendor relationships ‫ذج ِغ‬١‫ضغظ ِٓ اظً ػاللاخ ظ‬٠ 
► reduced need for indirect labor ٓ٠‫سد‬ٌّٛ‫ا‬
►smoother production flow ‫ش ِثاششج‬١‫ اٌؼّاٌح اٌغ‬ٌٝ‫مًٍ اٌؽاظح ا‬٠ 
► Worker participation in problem solving ‫ ؼشوح إٌّرط‬ٝ‫عالعح ف‬ 
‫ ؼً اٌّشىالخ‬ٝ‫ِشاسوح اٌؼّاي ف‬ 

Dr. Mohamed Fahmy

Benefits of lean manufacturing system ( JIT) ‫مزاٌا‬

‫التصنٌع الرشٌك‬

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Lean Manufacturing ‫التصنٌع الرشٌك‬

Waste Reduction
‫الذ‬ٛ‫ً اٌف‬١ٍ‫ذم‬

Enhanced Customer Value

Integrated Supply Chain

Lean Design

ً١ّ‫ُ اٌؼ‬١‫ض ل‬٠‫ذؼض‬

‫ذىاًِ عٍغٍح االِذاد‬

Flow ‫ذذفك‬ Process Design ‫تصمٌم العملٌة‬

Synchronize

Value- creating Organization

ُ١‫ خٍك اٌم‬ٍٝ‫ِٕظّح لائّح ػ‬

Dr. Mohamed Fahmy

Lean manufacturing (JIT) in service ‫التصنٌع‬

‫الرشٌك فى الخدمة‬
The basic goal of the demand flow technology in the service organization is to
provide optimum response to the customer with the highest quality service
and lowest possible cost.
‫الهدف األساسي لتكنولوجيا تدفق الطلب في تنظيم الخدمة هو توفير استجابة المثلى للعميل مع خدمات عالية‬
.‫الجودة وبأقل تكلفة ممكنة‬
▪ Eliminate disruptions
▪ Make system flexible ‫ االضطشاتاخ‬ٍٝ‫ اٌمضاء ػ‬
▪ Reduce setup and lead times ‫▪ ٔظاَ ِشْ اٌظٕغ‬
▪ Eliminate waste ‫ح‬١ِٕ‫ً اٌض‬ٌّٙ‫ا‬ٚ ‫ً اإلػذاد‬١ٍ‫▪ ذم‬
▪ Minimize WIP ‫اخ‬٠‫ إٌفا‬ٍٝ‫▪ اٌمضاء ػ‬
▪ Simplify the process
WIP ‫ش‬١‫▪ ذظغ‬
‫ح‬١ٍّ‫ظ ػ‬١‫▪ذثغ‬

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Lean Thinking versus Muda

Dr. Mohamed Fahmy

Background and Purpose

• Value is a key attribute of the technical professional is his/her

emphasis on and interest in professional values and goals rather than
those of an organization.
• Lean thinking principles are emerging as a method to improve the
flexibility, reliability, and profitability of enterprises worldwide.
• Lean thinking is being used to reduce setup times, lot sizes, and
inventories.
• Lean is all about removing waste in the enterprise.
– In time as well as cost. As enterprises have reduced costs and
improved quality, the primary competitive measure is the ability to
respond to the customer

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Muda

• Muda means “waste”

• Any human activity which absorbs resources but creates no value
• Mistakes which require rectification
• Production of items no one wants so inventories and remaindered
goods pile up
• Processing steps which aren‟t actually needed
• Movement of employees and transport of goods from one place to
another without any purpose
• Groups of people in a downstream activity standing around waiting
because an upstream activity has not delivered on time
• Goods and services which don‟t meet the needs of the customer

Dr. Mohamed Fahmy

The 5 Principles for achieving “Leanness”

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Lean Thinking
• Powerful antidote to muda
• Provides a way to specify value
• Line up value-creating actions in the best sequence
• Conduct these activities without interruption whenever someone
requests them
• Perform them more and more effectively
• Lean thinking is lean because it provides a way to do more and more
with less and less
– Less human effort
– Less equipment
– Less time
– Less space
• Coming closer and closer to providing customers with exactly what
they want
Dr. Mohamed Fahmy

Lean Thinking
• Make work more satisfying by providing immediate feedback on efforts
to convert muda into value
• Create new work rather than simply destroying jobs in the name of
efficiency
• Lean thinking steps:
– Precisely specify value
– Fully map the value stream for a specific product, and eliminate wasteful
steps
– Make the remaining, value-creating steps flow continuously
• Require complete rearrangement of your mental furniture…
– Let the customer Pull the product from you as needed
– Continuously improve to reach perfection

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5 principles of Lean ‫اساسٌات التصنٌع الرشٌك الخمس‬

• Value ‫ المٌمة‬- specify what creates value from the customer‟s perspective.

• The value stream ‫ – مسار المٌم‬identify all the steps along the process chain.

• Flow ‫ التدفك‬- make the value process flow.

• Pull ‫ السحب‬- make only what is needed by the customer (short term response to
the customer‟s rate of demand(.

• Perfection ‫ االحترافٌة‬- strive for perfection by continually attempting to produce

exactly what the customer wants.

Dr. Mohamed Fahmy

Step 1 - Specify Value

• The critical starting point for lean thinking

• Value can only be defined by the ultimate customer
• Only meaningful when expressed in terms of a specific product (a good or
a service, and often both( which meets the customer‟s needs at a specific
price at a specific time.
• Value is created by the producer
• From the customer‟s standpoint, this is why the producers exist
• Lean thinking must start with an attempt to precisely define value in terms
of specific products with specific capabilities offered at specific prices
through a dialog with specific customers
• Providing the wrong good or service the right way is muda

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Step 2 - Identify the Value Stream

• The value stream is the set of all specific actions required to bring a
specific product (goods, services, or both)
• Through the three critical management tasks of any business:
– Problem solving task – from concept through detailed design and
engineering to production launch
– Information management task – from order taking through detailed
scheduling to delivery
– Physical transformation task – from raw materials to a finished
product in the hands of the customer
• Identifying the entire value stream for each product (or product family)
is the next step in lean thinking

Dr. Mohamed Fahmy

Step 2 - Identify the Value Stream (cont.)

• Value stream analysis will almost always show the three types of
actions are occurring along the value stream:

– Unambiguously create value

– Create no value but necessary with current technologies and

assets (type One muda)
– Create no value and could be removed (type Two muda)

• Lean enterprise – a continuing conference of all concerned parties to

create a channel for the entire value stream, removing all the muda

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The value stream ‫تدفك المٌم‬

• The value stream is the sequence of processes from raw material to the customer
that create value.

‫• تدفك المٌم هو سلسلة من العملٌات المتتابعة من المواد الخام الى العمٌل وتضٌف لٌمة‬

• The value stream can include the complete supply chain.

‫• تدفك المٌم ممكن ان تحتوى سلسلة التورٌد كاملة‬

• Value stream mapping is an integral aspect of Lean.

‫• خرٌطة تدفك المٌم هى جزء ال ٌتجزء من التصنٌع الرشٌك‬

Dr. Mohamed Fahmy

Flow

• Make the remaining, value-creating steps of the process flow

• Redefine the work of functions, departments, and firms

• Create single piece flow instead of batch processing

• Ensure positive contribution to value creation

• Speak to the real needs of employees at every point along the stream
so it is actually in their interest to make value flow

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Pull

• Let the customer pull the product from you as needed rather than
pushing products, often unwanted, onto the customer

• The demands of the customer become more stable when they know
then can get what they want right away

• Pull system is more responsive to changes then push systems

Dr. Mohamed Fahmy

Perfection

• There is no end to the process of reducing effort, time, space, cost,

and mistakes while offering a product which is ever more nearly

what the customer wants

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Lean Manufacturing Cycle

SPECIFY
VALUE
1 IDENTIFY THE VALUE
STREAM
2

CONVERT PUSH TO 4
PULL
3
FLOW
Step 5 – CONTINUOUSLY IMPROVE
•Getting value to flow faster always exposes hidden muda in the value stream.
•The harder you pull, the more the impediments to flow are revealed so they can
be removed.
Dr. Mohamed Fahmy

Lean Methodology DMAIC

Define  Define Stakeholder Value and CTQs
 Define Customer Demand
Value  Map High-level Process
 Assess for 6S Implementation
 Measure Customer Demand
 Plan for Data Collection
Measure  Validate Measurement System
 Create a Value Stream Attribute Map
Value  Determine Pace, Takt-time and Manpower
 Identify Replenishment and Capacity Constraints
 Implement S1-S3

 Analyze the Value Stream Attribute Map

Analyze  Analyze the Process Load and Capacity
Process - Flow  Perform VA/NA Decomposition Analysis
 Apply Lean Problem Solving to Solve for Special Causes

 Conduct the Rapid Improvement Event

 Design the Process Changes and Flow
 Feed, Balance, Load the Process
Improve  Standardize Work Tasks
Process - Pull  Implement New Processes

Control  Stabilize and Refine Value Stream

 Complete Process and Visual Controls
Process  Identify Mistake-proofing Opportunities
 Implement S4-S6
 Control Plan, Monitor Results, and Closeout Project Lean vs. Six Sigma 169
.PPT

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The Cornerstone of Lean – The Toyota Production System

‫حجر الزاوٌة بٌن نظام التصنٌع الرشٌك ونظام انتاج توٌوتا‬

• Based on two philosophies: ‫تعتمد على فلسفتٌن اساسٌتٌن‬

• 1. Elimination of waste ‫منع الفوالد‬

• 2. Respect for people ‫احترام البشر‬

Dr. Mohamed Fahmy

Toyota Production System‟s Four Rules

1. All work shall be highly specified as to content, sequence, timing, and outcome.

2. Every customer-supplier connection must be direct, and there must be an

unambiguous yes-or-no way to send requests and receive responses.

3. The pathway for every product and service must be simple and direct.

4. Any improvement must be made in accordance with the scientific method,

under the guidance of a teacher, at the lowest possible level in the organization.

.‫ والنتٌجة‬،‫ والتولٌت‬،‫ وتسلسل‬،‫المحتوى‬: ‫ٌحدد لكل عامل ومعروف بدلة‬

‫ وٌجب أن ال ٌكون هنان لبس ان تكون هنان وسٌلة إلرسال الطلبات‬،‫ٌجب أن ٌكون اتصال العمالء المورد مباشرة‬ •
.‫واستمبال الردود‬

.‫ٌجب أن ٌكون مسارا لكل منتج وخدمة بسٌطة ومباشرة‬ •

.‫ فً أدنى مستوى ممكن فً المنظمة‬،‫ بتوجٌه من المعلم‬،ً‫ٌجب أن ٌتم أي تحسن وفك المنهج العلم‬ •

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Lean Six Sigma Integration

172

Dr. Mohamed Fahmy

What Is Typically Found

Lean Value Stream Management starts with defining value in
terms of products and process capabilities to provide the
customer with what they need at the right time and at an
appropriate price.

Non-value
added/waste
Value
added

Lean vs. Six Sigma

173 .PPT
Dr. Mohamed Fahmy

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The Methods

Methods Results

Improve Speed Higher Quality

Lean
& Lower Costs
Sustain Performance
Six Culture Change

Sigma Achieve Breakthrough Dashboard Results

Lean vs. Six Sigma

174 .PPT
Dr. Mohamed Fahmy

Lean and Six Sigma

Analyze Improve
Define Measure Process-Flow Control
Process-
Value Value Process
Pull

LEAN = Improvement principles focused on dramatically

improving process speed and eliminating the eight deadly
wastes.

Define Measure Analyze Improve Control

SIX SIGMA = Breakthrough Process, Design, or

Improvement Teams focused on eliminating chronic problems
and reducing variation in processes.
Lean vs. Six Sigma
175 .PPT
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Lean and Six Sigma

Lean = Rapid Improvement Teams focused on dramatically improving process
speed, and the elimination of the eight deadly wastes.

Define Measure Analyze Improve Control

Value Value Process-Flow Process- Process IMPROVED
Pull EFFICIENCY

Six Sigma = Breakthrough Process Improvement Teams focused on eliminating

chronic problems and reducing variation in processes.

IMPROVED
Define Measure Analyze Improve Control
EFFECTIVENESS

Lean vs. Six Sigma

176 .PPT
Dr. Mohamed Fahmy

Lean Six Sigma

• Lean Six Sigma is an approach to integrating the
power of Six Sigma Tools and Lean Enterprise
Tools which can be applied within an organization
to create the fastest rate of improvement,
maximize shareholder value, and increase
customer delight.

Analyze Improve
Define Measure Control
Process-Flow Process-
Value Value Process
Pull

Define Measure Analyze Improve Control

Lean vs. Six Sigma 177 .PPT

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Which Technique to Begin With?

 It is often advantageous to begin with Lean

projects.
– These are easier to understand and implement.
 Begin with streamlining processes and Rapid
Improvement Events.
– This gets the operation in good order.
– Chronic problems are now easier to deal with.
– “Low Hanging Fruit” is eaten.
 Next, select Six Sigma projects

Other Reasons to Begin Lean?

Lean vs. Six Sigma

178 .PPT
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Lean Projects

• Use Lean when you are trying to streamline any process and reduce
process waste.
– Improve assembly line throughput

– Reduction in Finished Goods Inventory

– Reduce the time to process new proposals

– Reduce machine setup time

– Improve order processing time

Lean vs. Six Sigma 179 .PPT

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Six Sigma Projects

• Use Six Sigma where process metrics are more difficult to collect
or understand, and project success requires analysis of multiple
input factors (Xs). These are often chronic problems.
– Improve yield on a continuously running machine

– Reduce defects on a machine with multiple inputs and machine settings

– Reduce the amount of wait time for a call center

– Improve the number of quality new hires

Lean vs. Six Sigma 180 .PPT

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Mixed Projects

•What happens when you start a Six Sigma Project and it turns into
a Lean project?
– It is all about the correct tools.
– Use the Lean tools for project success.

•What happens if a Lean project turns into Six Sigma?

– Depending when this is discovered, it may mean going back to utilize
some Six Sigma tools before proceeding.

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Input

Output
Process Six Sigma
Lean

Facts about Lean :

 Emphasis : Efficiency ( speed \ flow )
 Goal : Remove waste ; improve flow Facts about Six Sigma:
 Focus : primarily on the process  Focus : Effectiveness ( quality )
 History :  Goal : Remove defects; improve perf .
 1913 – Ford Motor Company  History :
 1930s – Toyota Production Sys  1800s – statistical Analysis begins
 1990s – “ Lean Thinking “  1980s – Motorola formalizes it
182
 1990s – GE popularizes it
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Input

Output
Process Six Sigma
Lean

Facts about Lean :

 Emphasis : Efficiency ( speed \
Facts about Six Sigma:
 Focus : Effectiveness ( quality )
flow )
 Goal : Remove defects; improve perf
 Goal : Remove waste ; improve
.
flow
 History :
 Focus : primarily on the process
 1800s – statistical Analysis begins
 History :
 1980s – Motorola formalizes it
 1913 – Ford Motor Company
 1990s – GE popularizes it
 1930s 184– Toyota Production Sys
 1990s – “ Lean ThinkingDr.“Mohamed Fahmy

Balancing Efficiency and effectiveness

Which is more important between efficiency & effectiveness ?
Neither! It depends on your goal.
• For example، suppose you had a car and a truck. Which
Vehicle is better ? It depends on your purpose for each.
• Purpose A: transports a couple people across town
Both vehicle are equally effective but the car is more efficient
(consumes less fuel to achieve same purpose)
Purpose B: Haul a large quantity of furniture and appliances across town
Only the truck would be effective

How does this compare to learn and six sigma ?

Effectiveness (i.e; quality or accuracy) should always be considered first
For example- who cares how efficient the car is if it‟s incapable of achieving purpose B ? Most of
the six sigma tools are designed to improve process efficiency
Efficiency can improve time / cost but shouldn‟t compromise effectiveness
When targeting Efficiency the output should always be measured to ensure Quality isn‟t
compromised . Lean tools are designed to improve process efficiency

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Introduction to engine room

186

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187

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