Posts Tagged ‘six-sigma’

Is Lean Six Sigma for me?

Thursday, May 9th, 2013

If you are like many of us that are looking to improve our personal skills, you may have thought about taking a course or two. Colleges promote their “executive MBA” programs but too often these “MBA” programs are a lot of work, time and money for very little payback. A friend of mine who is a technical recruiter remarked that she was surprised more people had not discovered the value of “Lean Six Sigma” training. It provides productivity skills that the average college graduate does not learn in school.

Lean Six Sigma is a hybrid combination of Lean and Six Sigma methods that has been proven to bring genuine benefit to the employer and the employee. Lean concepts are aimed at eliminating waste from the processes, increasing speed and focusing on what customers consider to be quality, while Six Sigma eliminates the process variations and improves the process according to the customer definitions of quality using specific metrics. If you are trained and certified in this improvement technology you are a valuable asset that is reflected in the higher pay individuals with this training receive.

If you are skeptical, there is no need to initially commit to an expensive training program until you are sure it is for you. You can purchase The Six Sigma Handbook by Thomas Pyzdek and learn what is required to master this technology. Afterwards you can study more and then become certified in a step by step process.

Learning new skills is the best way to pass the time if you are caught between jobs. Rather than watching the news report the high unemployment rates, you can be preparing yourself for a better position than the last. When you scan the want ads next time and see “Lean Six Sigma” as a requirement you could be ready to apply. Employers also like to know they are getting an employee that was willing to invest in their own skill sets too. Learning Lean Six Sigma is a win-win situation for you and your new employer.

For more, please contact us.

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Theory of Constraints and Flexible Processes

Tuesday, May 7th, 2013

I was asked by a student to explain constraint management and flexible processes, with simple examples. Here is my response.

Very briefly, the theory of constraints (TOC) is based on the premise that in any sequence of process steps, or on a larger scale any sequence of processes in a value stream, there is one step or one process that limits the throughput of the entire process or value stream. (For simplicity I will use the term “process” for both multi-step processes and multi-process value streams.) This “bottleneck” requires special treatment. In addition, the way in which constraints are handled has an impact on the choice of Six Sigma projects, as described in this article.

Flexible processes are arrangements of inputs (space, equipment, people and materials) that can be quickly reconfigured to produce a variety of different outputs (products or services) and quantities in response to changing customer demand. Ideally a flexible process will use only a limited amount of specialized equipment and the personnel will possess the skill sets needed to adapt to the different process configurations. Flexible process design is at the heart of Lean production. Compared with mass production processes, flexible processes use less capital, fewer employees and a smaller area to produce a given amount of output.

The coming together of TOC and flexible process design occurs when TOC principles are applied to the management of flexible processes. That is, once a set of inputs is configured to form a given process, the process designer considers the 5 steps of TOC and prepares a process management plan that incorporates this. The 5 steps are:

  1. Identify the system’s constraint(s).
  2. Decide how to exploit the system’s constraint(s).
  3. Subordinate everything else to the decision made in step 2.
  4. Elevate the system’s constraint(s).
  5. If, in the previous steps, a constraint has been broken, go back to step 1.

I.e., each process configuration is a new system and the constraint will likely be different for each configuration. Process improvement and Six Sigma project selection depends on knowing which process step is the constraint and managing the constraint as well as process steps prior to and subsequent to the constraint properly, as discussed here. This article shows a simple example of a process with a constraint and describes how knowing which step is the constraint impacts process management and process improvement activities.

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Lean Six Sigma Skills Still in Demand in 2013

Thursday, April 18th, 2013

new report from executive search firm The Avery Point Group indicates the demand for continuous improvement talent and Lean Six Sigma skills has more than doubled from 2010.

Although there have been three consecutive years of sustained demand for Lean Six Sigma skills, there was also a noticeable improvement in the demand for Six Sigma talent alone.

This marked the first time in the study’s history where demand for pure Six Sigma talent saw a noticeable year-over-year improvement relative to Lean. 

The report cited that Lean tends to be the dominate skill requirement within job postings. However, Six Sigma came on stronger this year even within Lean job postings.

Several factors in this year’s report include: 

  • Even with Six Sigma’s “resurgence,” Lean still dominates as the desired skill. However, Six Sigma is important to continuous improvement as companies recognize that Lean isn’t necessarily sufficient to meet every continuous improvement need.
  • According to the 7,097 Internet job postings reviewed for the study, 41 percent of the job openings sought pure Lean skills, while 27 percent sought pure Six Sigma skills. This suggests that companies may feel Lean’s focus on waste, flow, and flexibility is more practical.
  • Though demand for Lean talent exceeded Six Sigma by slightly more than 24 percent, this was still a large drop from last year’s record-setting 68 percent.

Overall, the results seem to indicate that even though Lean dominates, Six Sigma plays an important role in corporate continuous improvement.

Ultimately, Lean and Six Sigma are complementary strategies that offer significant benefits when implemented individually. However, used in combination they provide a cohesive approach that increases improvements in quality, efficiency, and productivity.

Lean Six Sigma is a leading management technique that maximizes production efficiency and maintains control over each step in the process. For more information on Lean Six Sigma tools, concepts, training, and certification, contact Thomas Pyzdek, well-known Lean Six Sigma expert and author of The Six Sigma handbook, a standard reference in the field.

The Pyzdek Institute offers Lean training, Six Sigma training, and Lean Six Sigma training.

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The Philosophy of Lean Six Sigma

Thursday, April 4th, 2013

Lean Six Sigma actually combines two great philosophies: Toyota’s lean manufacturing process philosophy and Motorola’s Six Sigma management philosophy. Ultimately, the goal is to produce the greatest possible output using tasks that produce the best results and happiest customers.

Lean as a Continuous Improvement Philosophy

The lean philosophy in two words: eliminate waste. This includes wasted time, human action, inventory, equipment usage, and materials.

The lean methodology focuses on streamlining each process to determine how to eliminate anything that does not add value for the customer. The goal is to “design out” inconsistencies while ensuring the process is as flexible as necessary to eliminate stress or “overburden.”

Ultimately, lean means doing more with less – effort, equipment, time, space, and money – while giving customers exactly what they want.

Six Sigma’s Critical Process Philosophy 

Unlike lean, the Six Sigma philosophy targets the elimination of manufacturing defects  through process knowledge. It focuses on mechanisms designed to compare customer need metrics with operational processes to ensure alignment. By integrating the principles of business, engineering, and statistics you achieve quantifiable results.

Therefore, using a structured statistical analysis approach, we can base decisions on data, while actions focus on customers’ needs.

Lean Six Sigma Philosophy 

While lean techniques focus on speed and increasing the amount of work completed in a process or value stream, Six Sigma focuses on improving the quality of each process to achieve a better result. Combined, they strive to offer the best business approach for satisfying customers.

By utilizing the tools of lean to eliminate waste and the tools of Six Sigma to focus on quality results, LSS offers a powerful method of meeting customer’s needs. The result is:

  • Better execution by linking strategic plans and operational improvements
  • Customer loyalty by focusing on customers’ needs
  • Greater returns by reducing operating costs and delivery times

Ultimately, the customers get what they need, want, and value. Your organization gains recognition, loyalty, and success.

For more information on Lean Six Sigma methodology or LSS training programs, review our website or contact us directly.

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Why Most Companies Fail at Lean Six Sigma

Thursday, March 28th, 2013

Everyone has an opinion on why Lean Six Sigma fails. Who is right and who is wrong doesn’t really matter. The important thing is to figure out what you can do to prevent it from happening to your company.

Keep Lean Six Sigma Alive and Well

A June 2012 Wall Street Journal post, “Where Process-Improvement Projects Go Wrong,” suggests that, similar to weight-loss plans, Lean Six Sigma programs fail because of declining motivation. Ultimately, participants “fall back into old habits.”

As the article illustrates, LSS is much like a metal spring. The more it’s pulled, the more it struggles to support the added pressure. In the case of Lean Six Sigma, midway through a project when the expert moves on and other projects grab the attention of top management, a team’s improving performance may stop and even regress.

To prevent this problem, they offer four solutions:

  • The extended involvement of a Six Sigma or other expert
  • Tie the performance management system to each process
  • Limit team size to six to nine members
  • Executives must participate, not just support

This fourth tip leads us to our next reason why Lean Six Sigma fails.

Demand Commitment from the Top

The buck stops here. The success of any change program rests with senior management. They must take an active role in the improvement programs to see and understand firsthand, rather than relying on someone else’s viewpoint.

This requires commitment along with a change in corporate culture. It’s not easy to do and sometimes it can get downright unpleasant. Businesses, after all, are run by people. We can only handle so much change and forcing it can cause pushback and frustration.

However, LSS is a philosophy requiring a paradigm shift. If you think it’s just a process, you’re doomed. Most processes have a finite life.

Make Sure to Make the Right Choices 

Knowing what you want and need out of the LSS process is more than half the battle. Creating a key performance metric from the number of people trained or certified is useless. Applying LSS tools to everything you do is not the answer.

Take time to understand the process and make sure it is appropriate for your company’s current situation. If you’re looking for a hail-Mary solution, you might want to reorganize, recapitalize, or implement a reduction in force.

Like any improvement methodology, for long-term improvements you need to start with a well-run organization and the right people, tools, and metrics for the best results.

The Pyzdek Institute can help by providing quality Lean Six Sigma training. Contact us today for more information.

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The Future of Six Sigma 2013 Update

Tuesday, March 26th, 2013

I am often asked my opinion regarding the future of Six Sigma.

Regarding the future of Six Sigma, it continues on despite rumors of its death which began shortly after its birth in the 1980s. For those doing it right (arguably a minority, but a sizable one,) the Six Sigma approach has evolved into a new way to lead and manage an organization. Many have rebranded the approach to shed the baggage which Six Sigma has accumulated during its 27-year run as a “fad.” The new approach to leadership and management is distinguished from the traditional approach by four characteristics:

  1. a balanced approach to stakeholder demands (versus managing primarily for shareholders,)
  2. a balance of short- and long-term goals (versus a focus on quarterly results,)
  3. emphasis on facts and data, (versus reliance on expert opinion,) and
  4. a “horizontal” value stream perspective (versus a top-down command-and-control hierarchy.)

Any one of these things would be a game-changer. Taken as a whole they would ordinarily be thought of as revolutionary. However, probably due to the fact that the changes happened over nearly three decades, they haven’t been widely recognized as having the impact that they’ve had. Instead, as organizations using this approach have pushed their usage upstream to suppliers and downstream to customers, their adoption has slowly spread from United States manufacturers to all industries globally. As a result it is now commonplace for career guidance counselors to advise people to become Six Sigma certified. Some advise recipients of Bachelors degrees to become Six Sigma certified before pursuing Masters degrees.

The Next Big Thing: Big Data

One thing I’d like to see embraced by Six Sigma is the Big Data Revolution, which is a theory-free approach to using data in corporate data warehouses. Big Data is akin to part of the Measure Phase of a Six Sigma project, except that instead of using information in a data warehouse to test ad hoc theories, Big Data crunches the data warehouse contents to look for correlations. Correlations are then used for planning activities and, usually, the cause of the correlation is not pursued. This is very different than the use of data in a Six Sigma project, where the analysis is focused on achieving a particular goal. I don’t see Big Data as a competitor but as an opportunity for the Six Sigma community to move into another area. After all, analysis is a skill set Six Sigma practitioners have. We need to add a few new tools to our toolkit (e.g., data mining tools,) but these are similar to the statistical tools we already use .

Six Sigma and the quality profession can add a dimension to Big Data by filling in the gap between correlation and causation. By employing our ability to assemble interdisciplinary teams and utilizing the tools of experimental design, we can go beyond Big Data’s casual acceptance of correlation and answer the all-important question: why does this correlation exist? This is essential if we are to avoid the many traps that result from blindly acting on correlation without a deeper understanding of cause-and-effect. For example, a call center using Big Data discovered that callers who were kept on hold for as long as 1-hour were no less satisfied with their experience than callers whose calls were answered immediately, providing their issue was resolved. Further research into the cause of this unexpected result led to the determination that the missing variable was that many callers hung up rather than wait an hour for their calls to be answered. The customers who abandoned the call were not asked to complete the after-call survey. When these callers were contacted and their satisfaction scores added to the data, the  correlation not only disappeared, it was reversed. I.e., customer satisfaction declined as hold time increased.

Big Data also misses the boat in a number of other ways that Six Sigma and quality professionals can address. There are inherent problems with relying solely on data in data warehouses. These data are generally operational data, not data from planned experiments. Thus, they are often missing important variables. When variables are not manipulated in a planned way, statisticians are often not able to disentangle their interrelationships. They are also not able to properly explore important interactions between the variables. Operational processes are carefully controlled, so the variables involved don’t vary by much, leading to the “range restriction effect” that hides underlying relationships. These and other shortcomings of “happenstance data” analysis are well-known to Black Belts and Quality Engineers.

Speaking of skilled professionals, the obvious preferred group for addressing Big Data issues is Statisticians. However, Statisticians are in notoriously short supply and have been for decades (if not always.) Six Sigma “belts,” quality engineers, and reliability engineers are trained in a significant subset of useful statistical techniques. This pool of skilled workers can be leveraged to greatly expand the reach of the few statisticians available in most organizations.

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Lean Six Sigma Requires a Flexible, Motivated Workforce

Monday, March 18th, 2013

Lean Six Sigma increases workforce flexibility and agility as it helps businesses improve their bottom line. In fact, according to the white paper, “The Lean Workforce: Applying Lean principles to improve workforce management,” a critical component of a successful program is having a “flexible, motivated workforce.” This requires you to understand what motivates your workforce and then to accurately measure those drivers.

In the Quality Digest article, “Creating a Six Sigma Workplace,” Tej Mariyappa writes about the CREATE principle for “driving a successful Six Sigma deployment.” The six factors he chooses – Commit, Reward, Evangelize, Aspire, Train, and Empower – clearly play a critical role in motivating employees.

Mariyappa’s recommendations include:

  • Commitment in terms of time, resources, and upper-management focused over a sustained period
  • A well-thought-out structure for rewards and incentives
  • Developing a concerted communication strategy and reinforcing key messages
  • Declaring to become the best in the industry
  • Developing strong training capabilities
  • Empowering employees to do what it takes to root out inefficiency and waste

The question then becomes how to measure these drivers accurately and efficiently to further employee motivation. The most time-honored method is by developing measurable objectives. 

The goal is where we want to be. The objectives are the steps needed to get there. – Unknown

Measurable objectives are the specific measures used to determine whether you’re successful in achieving your goal. In other words, the objectives are your instructions on what you want to be able to do.

The best measurable objectives contain action verbs and specific conditions, such as how many, as well as criteria for measuring success. A complementary tool that many people use is the SMART goal – specific, measurable, attainable, realistic, timely.

For instance, if your goal is to develop rewards and incentives, your objectives may include the definition, development, approval, and introduction of new reward and incentive programs. Naturally, your goals and objectives will contain more detail.

The whole idea is that to achieve Lean Six Sigma improvements it’s important to develop a flexible, motivated workforce. Without them there is no Lean Six Sigma program.

For further information on LLS, what it can bring to your business, and our training programs, contact us.

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Lean Six Sigma Yellow Belt Course Outline

Sunday, April 15th, 2012
  1. Introduction
    1. What is Six Sigma
    2. Lean Six Sigma overview (3 modules)
  2. Define
    1. Recognize an opportunity
    2. Choose a project
      1. Pareto analysis
      2. Project assessment
    3. Develop the project plan
      1. Charter
      2. Identify and overcome obstacles
    4. Map the process
      1. L-Maps
      2. SIPOC maps
      3. Product family matrix
    5. Voice of the Customer (VOC)
      1. Kano analysis
      2. Tree diagrams
    6. Define phase tollgate review
  3. Measure
    1. Principles of variation
      1. Measurement concepts
      2. Measurement studies, statistical process control (SPC)
    2. Establish the baseline
      1. Descriptive statistics
      2. Individuals control charts
      3. Control chart interpretation
      4. Normal distribution
      5. Process capability analysis
      6. Process yields
      7. Activity maps
      8. Spaghetti charts
      9. Value stream maps
    3. Stratify data
      1. Data collection and sampling
      2. Matrix diagrams and other tools
      3. Histograms and frequency plots
    4. Set goals for outputs
      1. Benchmarking
      2. Failure mode and effects analysis (FMEA)
    5. Measure phase tollgate review
  4. Improve/Control
    1. Focus the problem statement
      1. Opportunity maps
    2. Develop theories of cause and effect
      1. Fishbone diagrams
    3. Model cause and effect
      1. Scatter plots
    4. Analyze phase tollgate review
    5. Maintaining a clean and efficient workplace
      1. Lean 5S
    6. Measurement system analysis
    7. Develop the improvement strategy
      1. Planning, pilot study
      2. Risk assessment and mitigation
    8. Implement the improvements
      1. New standard operating procedures
      2. Implementing full-scale changes; mistake-proofing
      3. Transfer ownership
      4. Continuous improvement; Kaizen
  5. Project Tollgate Review
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Where Do Those Six Sigma Statistics Come From?

Friday, January 13th, 2012

A student of mine had numerous questions about the various statistics used in Six Sigma. Here is my response to him in an open email:

The questions you are asking regarding “Where do these statistics come from?” require entire courses in statistics to answer. In Lean Six Sigma we take information from a dozen or so statistics courses, project management courses, psychology courses, business courses, mathematics courses, etc. and put it into an action framework that can be used to make fast improvements. We probably present less than 10% of the information you would receive if you sat through all of these courses, but we do so in less than 5% of the time it would take to complete all of these courses. It’s a tradeoff. We make the greatest compromises in the field of statistics. We discuss the use and interpretation of a select subset of statistics, and answer the question “where do these statistics come from?” by saying “they come from computer software.” While most are satisfied with this answer, some find the answer to be most unsatisfying. Judging from your questions, I suspect you are in the latter group.

anova-table-calculations-e-handbook-of-statistics

Two-Way ANOVA Calculations from E-Handbook of Statistics

Assuming you don’t have the time or the desire to take all of the courses relating to the Lean Six Sigma body of knowledge, but still seek answers to the specific statistics you asked about, I recommend the E-Handbook of Statistical Methods. This reference source is free and very comprehensive. It’s easy to search and will give you the answers you seek. For example, I searched on the term sum of squares, which you asked about, and the search returned pages on the half-normal probability plot (your question about fig. 10.26,) 1-way ANOVA (several of your question were about these calculations,) and several other related topics. A search on ss interaction provides answers to your question about the calculation of this intermediate statistic.

Sorry I can’t address all of your questions via email, but perhaps the reference above will start you on your way to answers. I had the same questions when I started learning about quality improvement nearly 45 years ago, and I am still looking for answers to questions today. Have fun!

Tom Pyzdek

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Free Webinar on Innovating With Lean Six Sigma

Thursday, January 12th, 2012

ArtworkCEOs report that their innovation efforts are hampered by unsupportive cultures, rigid organizational mindsets, and lack of processes and discipline. Lean Six Sigma addresses all of these issues. When done properly, Lean Six Sigma can be used to supercharge innovation. Find out more by attending this free webinar delivered by Thomas Pyzdek.

Click the link below to reserve your seat for this webinar.

Wednesday, January 18, 11:00AM EST. Click here to register.

Click here to view a recording of the webinar.

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