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1、Synergy of Six Sigma and Lean,Lean 6 sigma introduction,Learning Objectives,Understand the synergy of lean and six sigma as a powerful business performance improvement program Understand how lean and six sigma complement each other,Why Is Every Firm Driven to Both Quality and Lead Time Reduction Goa

2、ls?,Customer loyalty and retention Shorter customer lead time Downward price pressure: lower costs Lower invested capital Capacity expansion,Lean Applied in the DMAIC Methodology Provides a Powerful Structure,Six Sigma has given Lean additional focus: Effect of Variability DMAIC (Define-Measure-Anal

3、yze-Improve-Control) structure Improvement infrastructure Voice of the Customer Focus on Quality Lean has given Six Sigma additional tools: Analyze/Measure Phase: Value Stream Mapping, Time Trap Analysis Improve Phase: Kaizen, Pull Systems, Setup Reductions, Work-Cells, Process Balancing, etc. Contr

4、ol Phase: Takt Boards, Standard Work, Metrics & Dashboards, 5S,DMAIC Methodology and Lean,DMAIC DefineMeasureAnalyzeImproveControl,% Applicability of Lean Tool Set,Lean tools applicable in all phases of DMAIC, but peak in Analyze and Improve phases,Lean tools applicable in all phases of DMAIC:,Six S

5、igma and Lean,Six Sigma provides a “Unifying Framework” Six Sigma provides the over-riding methodology (DMAIC) Six Sigma provides the improvement infrastructure Six Sigma provides the burning platform for improvement Lean provides improvement tools and fast-attack approach to “turbo-charge” improvem

6、ent efforts,LEAN 6 SIGMA,What needs and requirements?,Quality,Level of service,Eco Performance,Customer requirements,Why Integrate? “We knew we wanted to have Six Sigma Tools, that was clear. But we also decided that what really makes change in a factory are some of the Lean tools. Putting in a pull

7、 system, reducing batch sizes, significantly changing setup times, all of a sudden everything starts to flow. Those are the types of things we saw over time that real made a difference in our factories and so we said that has to be a part of this training.” Lou Guiliano, ITT Industries CEO on integr

8、ating lean techniques into ITTs Six Sigma Rollout,Six Sigma and Lean Integration,The Answer,In the 2000 Annual Report, Welch announced a new goal for GE: reducing the variation in lead-time which he refers to as “span”.,“Today, we have a Company doing its very best to fix its face on customers by fo

9、cusing Six Sigma on their needs. Key to this focus is a concept called span, which is a measurement of operational reliability for meeting a customer request. It is the time window around the Customer Requested Delivery Date in which delivery will happen.”,Lean + Six Sigma,Lean Six SigmaDMAIC Improv

10、ement Process Road Map,Review Project Charter Validate Problem Statement and Goals Validate Voice of the Customer and Voice of the Business Validate Financial Benefits Validate High-Level Value Stream Map and Scope Create Communication Plan Select and Launch Team Develop Project Schedule Complete De

11、fine Gate,Identify Potential Root Causes Reduce List of Potential Root Causes Confirm Root Cause to Output Relationship Estimate Impact of Root Causes on Key Outputs Prioritize Root Causes Complete Analyze Gate,Develop Potential Solutions Evaluate, Select, and Optimize Best Solutions Develop To-Be V

12、alue Stream Map(s) Develop and Implement Pilot Solution Confirm Attainment of Project Goals Develop Full Scale Implementation Plan Complete Improve Gate,Implement Mistake Proofing Develop SOPs, Training Plan and Process Controls Implement Solution and Ongoing Process Measurements Identify Project Re

13、plication Opportunities Complete Control Gate Transition Project to Process Owner,Project Charter Voice of the Customer and Kano Analysis SIPOC Map Project Valuation / ROIC Analysis Tools RACI and Quad Charts Stakeholder Analysis Communication Plan Effective Meeting Tools Inquiry and Advocacy Skills

14、 Time Lines, Milestones, and Gantt Charting Pareto Analysis Belbin Analysis,Value Stream Mapping Value of Speed (Process Cycle Efficiency / Littles Law) Operational Definitions Data Collection Plan Statistical Sampling Measurement System Analysis (MSA) Gage R&R Kappa Studies Control Charts Histogram

15、s Normality Test Process Capability Analysis,Process Constraint ID and Takt Time Analysis Cause and Effect Analysis FMEA Hypothesis Tests/Conf. Intervals Simple and Multiple Regression ANOVA Components of Variation Conquering Product and Process Complexity Queuing Theory,Replenishment Pull/Kanban St

16、ocking Strategy Process Flow Improvement Process Balancing Analytical Batch Sizing Total Productive Maintenance Design of Experiments (DOE) Solution Selection Matrix Piloting and Simulation,Mistake-Proofing/Zero Defects Standard Operating Procedures (SOPs) Process Control Plans Visual Process Contro

17、l Tools Statistical Process Controls (SPC) Solution Replication Project Transition Model Team Feedback Session,Value Stream Map for Deeper Understanding and Focus Identify Key Input, Process and Output Metrics Develop Operational Definitions Develop Data Collection Plan Validate Measurement System C

18、ollect Baseline Data Determine Process Capability Complete Measure Gate,Tools,Activities,Applying the Tools for Results,Distribution,Reduce Variation Shift the Mean,Lean Six Sigma Is the Integration of Two Powerful Business Improvement Approaches.,Lean Value stream mapping to identify Non Value Add

19、Cost Time Trap id and removal “Pull” from the Customer Setup and queue reduction Process flow improvement Total Productive Maintenance 5S Foundations Kaizen for rapid improvement.,Six Sigma Management Engagement Dedicated Infrastructure/People Voice of the Customer Statistical process control Design

20、 of Experiment Poka-Yoke Gage R&R Failure Modes Effect Analysis Cause and Effect Analysis.,Culture+Quality+Customer,Speed+Low Cost+Flexibility,Six Sigma Improves Quality of Value Add Steps,Six Sigma Improves Quality, Lean Eliminates Non-Value-Add Steps in the Value Stream Both Are Required to Reduce

21、 the Cost of Process Complexity,Overall Yield vs. Sigma (Distribution Shifted 1.5s),Source: Six Sigma Research Institute, Motorola University, Motorola, Inc.,Lean Reduces Non-Valued Add Steps,Lean Six Sigma Drives Quality, Speed and Cost Simultaneously,The Lean Six Sigma Secret,The principal Lean Si

22、x Sigma insight is that: Material spends 95% of its time waiting, creating overhead cost 80% of the wait time is due to Time Traps caused by 20% of the activities They can be found using Time Trap analysis. Time Traps can be eliminated using Lean and Six Sigma tools. Lead time and WIP+ Finished Good

23、s inventory can be reduced 50-80% Overhead+Quality Cost can be reduced by 20% These insights hold true for all processes,Raw Materials,Production Process,8 Week Total Cycle Time,Product,Order,Before Improvements,40 Days,10 Days,Cycle Time Reduction,75% Reduction,After,Project Selection Reduces Numbe

24、r of Projects and Provides Focus,Lean Six Sigma Kaizen Projects Best for low complexity projects where known solution(s) can be applied High bias for action and implementation 5 day High Speed “Mini” DMAIC,Lean Six Sigma Projects Best for complex projects where root cause of problem is not understoo

25、d Thorough measurement and analysis prior to implementation Typical 1 to 4 month project duration,Littles Law,EP = Economic Profit ROIC = Return on Invested Capital WACC = Weighted Average Cost of Capital PP&E = Plant, Property & Equipment A/R = Accounts Receivable,ROIC = Profit After Tax/Invested C

26、apital: Drive Cost and Invested Capital down, Revenue up Invested Capital Inventory + PP&E + A/R,Voice of the Shareholder: Prioritize Projects Based on Potential Increases in ROIC,Six Sigma and Lean,Are not mutually exclusiveNot only are they not mutually exclusive, they Are compatibleNot only are t

27、hey compatible, they Are complementaryNot only are they complementary, they Are enablers of each otherNot only are they enablers of each other, they Are in many cases necessary conditions of each other,Lean Six Sigma,Combines the strategy, solution sets, cultural and organizational processes, and an

28、alytical tools of Lean and Six Sigma. With the result that we respond to our customers better, faster with less waste,Exercise Card Drop Simulation,APPENDIX A,The History of Six Sigma,Six Sigma History,Motorola was the first advocate in the 80s Six Sigma Black Belt methodology began in late 80s/earl

29、y 90s More recently, other companies have embraced Six Sigma: GE Allied Signal Bombardier Sony Involves use of statistical tools on projects that yield high ROI Project implementers names includes “Black Belts”, “Top Guns”, “Change Agents”, and “Trailblazers” Implementers are expected to deliver ann

30、ual benefits between $500,000 and $1,000,000 through 3-5 projects per year Top-down program with Executive and Champion support,Six Sigma History,Nobody at GE gets promoted without Six Sigma training. GE annual reports states that Six Sigma delivered: $300 million to its operating income in 1997 $75

31、0 million to the bottom line in 1998 Additional annual report examples: 10-fold increase in life of CT scanner x-ray tubes Improved yields of super-abrasives worth a full decade of increased capacity despite growing demands 62% reduction in turn-around time of railcar leasing repairs Plastics busine

32、ss added 300 million pounds of new capacity equivalent to “one free plant”,Six Sigma History,“Sigma” ( ) is a letter in the Greek alphabet Describes variability Sigma Quality Level Indicator of how often defects are likely to occur Six Sigma Quality Level is said to equate to 3.4 PPM defective,What

33、Is Six Sigma?,The term “Sigma” is a Greek letter (s) used to describe variability and is an indicator of how likely errors are to occur,Costs Are Always Kept in Mind,There is an optimum quality level beyond which the costs of quality improvement exceed the expected cost savings from a reduced number

34、 of defects,Frameworks of Six Sigma,Six Sigma Improvements Aligning processes to the customer and optimizing process performance by solving problems. Design for Six Sigma Develop new processes/products that are capable. Business Process Management Maintain performance improvement, while Highlighting

35、 new opportunities for making further improvements,Rolled Throughput Yield (RTY) is the probability that a product will pass through the entire process without rework and without any defects.,RTY= Y1 x Y2 . . . Yn (n = number of process steps),Why Six Sigma Is the Goal,For complex products and syste

36、ms, 6s is necessary to produce or perform defect-free more than 90% of the time,How Complex Are Your Products?(% Shippable without Rework),Why 99% Is Not Good Enough,The “goodness level” of 99% equates to: 20,000 lost articles of mail per hour Unsafe drinking water almost 15 minutes each day 5,000 i

37、ncorrect surgical operations per week 2 short or long landings at most major airports each day 200,000 wrong drug prescriptions each year No electricity for almost 7 hours per month,This Training Manual and all materials, procedures and systems herein contained or depicted (the Manual) are the sole and exclusive pr

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