lean six sigma methodology

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Ramiro Cid | @ramirocid

Lean Six Sigma Methodology

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Index 1. Concepts Slide 3

2. Introduction Slide 4

3. DMAIC Slide 7

4. Process Mapping Slide 8

5. Fishbone Diagram Slide 9

6. SIPOC Slide 10

7. CTQ’s Slide 11

8. Metrics Slide 12

9. Risk Analysis Slide 13

10. Graphs Slide 14

11. Business Case Slide 15

12. Certifications Slide 16

13. Sources used and webs to expand knowledge Slide 17


Lean: Created by Toyota on 1989. (Author: Jim P. Womack)

Focus on speed and best cost (efficiency)

Main concepts of this methodology:

Identify and remove 8 wastes: Transport, Inventory, Motion, Waiting, Over production, Over processing, Defects and Skills

Six Sigma: Created by Motorola on 1985

Focus on effectivity of processes

Some companies who implemented Six Sigma: GE (implemented and refined it), 3M, Airbus, Phillips

Main concepts of this methodology:

1) Statistical number, 2) Methodology (DMAIC), 3) Philosophy on customer focus and in 0 defects.

4) Data driven decisions

1. Concepts


Lean Six Sigma is a process improvement methodology that relies on a collaborative team effort to improve

performance by systematically removing waste, combining Lean and Six Sigma to eliminate the eight kinds of

waste (muda): Transportation, Inventory, Motion, Waiting, Over production, Over processing, Defects, and Skills

(abbreviated as 'TIMWOODS').

The Lean Six Sigma concepts were first published in a book titled Lean Six Sigma: Combining Six Sigma with Lean

Speed by Michael George and Robert Lawrence Jr. in 2002

Lean Six Sigma utilizes the DMAIC (Define, Measure, Analyze, Improve and Control) phases similar to that of Six

Sigma. Lean Six Sigma projects comprise aspects of Lean's waste elimination and the Six Sigma focus on reducing

defects, based on critical to quality (CTQ) characteristics.

In the next slides we will see some tools used by this methodology. To show all them we will include some examples to show how to use each of them.

2. Introduction


Lean Six Sigma includes concepts of both methodologies.

Six Sigma use statistics tools for characterization and study of the processes, this is the reason of the name, as

sigma is the standard deviation which gives an idea of the variability in a process and the goal of Six Sigma is to

reduce it so that the process is always within the limits set by customer requirements.

1 sigma = 690,000 DPMO = 32% efficiency

2 sigma = 308,538 DPMO = 69% efficiency

3 sigma = 66,807 DPMO = 93.3% efficiency

4 sigma = 6.210 DPMO = 99.38% efficiency

5 sigma = 233 DPMO = 99.977% efficiency



Note: DPMO means “Defects per million opportunities”

2. Introduction


Regarding the other methodology, Lean manufacturing or lean production, often simply "lean", is a systematic

method for the elimination of waste ("Muda") within a manufacturing system. Lean also takes into account waste

created through overburden ("Muri") and waste created through unevenness in work loads ("Mura"). Working from

the perspective of the client who consumes a product or service, "value" is any action or process that a customer

would be willing to pay for.

Lean principles are derived from the Japanese manufacturing industry.

The eight muda are:

1. Transport (moving products that are not actually required to perform the processing 2. Inventory (all components, work in process, and finished product not being processed 3. Motion (people or equipment moving or walking more than is required to perform the processing 4. Waiting (waiting for the next production step, interruptions of production during shift change 5. Overproduction (production ahead of demand 6. Over Processing (resulting from poor tool or product design creating activity 7. Defects (the effort involved in inspecting for and fixing defects 8. Skills (waste of Skills, referred to as "under-utilizing capabilities and delegating tasks with inadequate training)

2. Introduction

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3. DMAIC

DEFINE

CONTROL

IMPROVE ANALYSE

MEASURE

Project Charter ü

Process Mapping ü

Fishbone diagram ü

Process Analysis üCreate Solutions üSelect Solutionsü

Validate Solutions üImplement Solutions ü

Monitoring üDocumentation ü

What’s my problem ?

How big is my problem ?

What are the root

causes of my problem ?

What is the best

solution ?

How can we sustain the

improvement ?

“Big impact on business during IT infrastructure

incidents”

SLA’s vs. Resolution time average

This lack of visibility of critical information technology is a

problemTo have a monitoring system

connected to Incident management application

Doing the maintenance and update of all IT Assets in the

monitoring system

One practical example:


An example of a Process mapping where an IT Incident management:

4. Process Mapping


An example of a Fishbone Diagram where time to resolve an incident is the target and we have 6

different domains: Man, Method, Materials, Mother Nature, Machine and Measurement

5. Fishbone Diagram


An example of a SIPOC table where the different steps we have on Process Mapping are showed

as a table:

6. SIPOC

Supplier Input Process Output Customer

CustomerCall / Email /

Monitoring toolNotificationDetection

Record in Incident Management tool

Monitory tool Alarms NotificationDetection


Infrastructure System logs Analyze Record in Incident Management tool

IT AreaKnowledge / Experience /

DocumentationCorrective action


IT Area Solution found Quality check Notification

Customer Feedback Close incident Record in Incident Management tool

IS


An example of a CTQ’s where we could see 3 different aspects of a problem: a) VOC (‘Voice of

Client’) where we include what our customer (internal or external) wants, b) Statements which are

close to the true (possible to get) and finally c) CTQ which is like the SLA of the target we want to

reach.

7. CTQ’s

VOC True need CTQ

"Alarm notification at the time it happens"

Time [< 5 Minutes] 1 minute to receive the alert on Incident management from monitoring tool

"I would not need to report the incident"

0 Incidents reported by users

All IT assets monitored

"No delays on my process because IT infrastructure reason"

Resolution time following SLAs in

Incident management tool

Resolution time following SLAs in Incident management tool


An example of metrics we want to reach using an Incident management tool:

8. Metric

Reference: SLA Interactions or incidents SLA (Resolution time objective)

Days

SLA (Resolution time objective)

Hours1 - Critical 0,25 6

2 - High 0,25 6

3 - Average 1 24

4 - Low 4 32


An example of Risk Analysis. In spite of is not mandatory to use it on Lean Six Sigma, it is ever

recommended to do it to get the risks of a new project, environment, change, etc. with the target of

reduce as much as possible the residual risk (the risk after apply controls):

9. Risk Analysis

C I Afactor value

No dual power source in routersIn case some electric

phase is down the router will be down

2 routers: Main and backup. Backup router give service in less than 10 seconds in case of the main crash. Both are

connected in different electric phases

x 1 4 1 4

No dual power source in Colt fibber convertes in front of routers

In case some electric phase is down the router

will be down

2 routers: Main and backup. Backup router give service in less than 10 seconds in case of the main crash. Both are

connected in different electric phases

x 1 4 1 4

Router not accessible by in case WAN connection crashes

In case WAN connection is down will not be able to

access to manage the router

have a management modem connected by an

analogic line to manage the router by console port

x 1 1 2 2

Router Buenos Aires John Smith Michael Johnson

Location/s Power user Vulnerability description Threat description Existing Controls/practicesAsset Risk Owner ProbabilityImpactRisk

Value

Assets criticality


In spite of is not mandatory to use them on Lean Six Sigma, it is ever

recommended to do because help us to show data in an easy way so giving us

support to our statements.

We can use MS Excel or similar tools, but we have an specific tool for statistical

data management and graphs called ‘Minitab’ very useful for Lean Six Sigma

projects

10. Graphs


An example of summary of a Business Case (after do all the calculations needed to get the final

figures):

A Business Case is ever needed to justify our investments (CAPEX and/or OPEX) in a project so

for Lean Six Sigma it is important too to do it.

11. Business Case

Gross ProfitTopic Total Cost

Gross Profit 1st year:Cost of monitoring - Cost of incidents - 10% of saving because monitoring rollout)

5.530,00 € No profit

Gross Profit next years:Cost of monitoring - Cost of incidents - 10% of saving because monitoring rollout)

730,00 € No profit


There are 4 steps to be certificated on Lean Six Sigma:

12. Certifications


What is Lean Six Sigma | goleansixsigma.com

URL: https://goleansixsigma.com/what-is-lean-six-sigma/

‘Lean Six Sigma’ | Wikipedia

URL: https://en.wikipedia.org/wiki/Lean_Six_Sigma

What is Six Sigma? | AU: T. M. Kubiak and Donald W. Benbow

URL: http://asq.org/learn-about-quality/six-sigma/overview/overview.html

Six Sigma vs. Lean Six Sigma | Villanova University

URL: http://www.villanovau.com/resources/six-sigma/six-sigma-vs-lean-six-sigma/#.V87e7UYqSJ8

LSSI – Lean Six Sigma Institute

URL: http://www.leansixsigmainstitute.org/

13. Sources used to expand knowledge

https://goleansixsigma.com/what-is-lean-six-sigma/

https://en.wikipedia.org/wiki/Lean_Six_Sigma

http://asq.org/learn-about-quality/six-sigma/overview/overview.html

http://www.villanovau.com/resources/six-sigma/six-sigma-vs-lean-six-sigma/.V87e7UYqSJ8

http://www.leansixsigmainstitute.org/


Questions?

Many thanks ! Ramiro Cid

CISM, CGEIT, ISO 27001 LA, ISO 22301 LA, ITIL

[email protected]

@ramirocid

http://www.linkedin.com/in/ramirocid

http://ramirocid.com http://es.slideshare.net/ramirocid

http://www.youtube.com/user/cidramiro

lean six sigma methodology

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