Alex Teoh
Principal Consultant
Lean Sigma Institute
[e-mail]
Lean or Six Sigma?
Which One First?
Two most recognized productivity
improvement platforms&
by world class companies around
the world&
LEAN SIX SIGMA
LEAN SIX SIGMA
Billions Dollars Club
LEAN SIX SIGMA
LEAN SIX SIGMA
TOYOTA MOTOROLA
TOYOTA MOTOROLA
Wiremold GE
Lantech DuPont
Boeing Honeywell
Solectron Kodak
more to the lists&
Key Points Summary
1 23
Lean Six Sigma Lean Sigma
Lean Benefits 6 Sigma Benefits LeanSigma
Key Tools Key Tools LSS X-plan
Success Factors Success Factors LSS Speed Loop
Challenges Challenges Benefits
LEAN BENEFITS:
Deploying effective ways to eliminate WASTE
WASTE
(Non Value Added) with the goal of
- reducing process cycle times
process cycle times
- improving delivery performance
delivery performance
- reducing cost of operation
cost of operation
LEAN BENEFITS:
Space Saving 2004 Shingo Prize Winners
Productivity Improved
DELNASA 5&6 - DELPHI
WIP Reduction
- 41% productivity improvement
Lead Time Reduction
- 70% inventory turn improvement
Quality Improvement
- 40% improvement on 1st time quality
- 200% participation in employee suggestion
- 22 million work-hour without a lost day
Cost Reduction
Shorten Delivery
LEAN TOOLS
5S Workplace One Piece Flow
Value Stream Mapping Cellular Production
Kaizen Pull Production
Work Standardization Poka-Yoke
Demand/Load Leveling Quick Changeover
Visual Management Total Productive Maintenance
Employee Involvement Supply Chain Management
not complete list
LEAN SUCCESS
lies in
finding the Effective Ways
to eliminate wastes
5Q that influence success
5S Workplace
Cellular Production
Which one to use?
Value Stream Mapping
How to use?
Pull Production
Poka-Yoke
How often?
Quick Changeover
Demand/Load Leveling
Partial or full impact?
Visual Management
Employee Involvement
Who is leading?
Total Productive Maintenance
LEAN CHALLENGES
Process Incapability and Instability
Demand Fluctuation
People Issues
SIX SIGMA BENEFITS
Using statistical techniques to understand,
measure and reduce process VARIATION
VARIATION
with primary goal of
- reducing process variation
process variation
- reducing defects
defects
- reducing cost of poor quality
cost of poor quality
SIX SIGMA BENEFITS:
Critical Process Stability
Bank Of America
Simplified Process
report at ISSP Conference 2003
Reliability & Stability
- Reduction in DPMO from 4500 to 1000
Defect Reduction
- 25% reduction in check sorter
Yield Improvement
Raytheon Aircraft s IT Department
reported in CIO magazine
Cost Saving
improvement in claims processing
Customer Satisfaction
resulting USD13million savings
SIX SIGMA Tools
Process Mapping
Cost of Quality
SIPOC
ANOVA
Multi-Variance
CTQ
Hypothesis Testing
SPC
Regression
FMEA
Statistical Tools
DOE
MSA Gauge RR
QFD
Root Cause Analysis
DFSS
Not complete list
SIX SIGMA SUCCESS
lies in
Expert application of
Statistical Tools
to eliminate process variation
5Q that determine success
Process Mapping
SIPOC
Which one to use?
SPC
How to use?
FMEA
DOE
How often?
QFD
Partial or full impact?
MSA Gauge RR
Who is leading?
ANOVA
Multi-Var and Hypothesis
Regression
SIX SIGMA CHALLENGES
Dedicated Black Belt Program
Long Project Duration
Candidate Issues
LEAN SIX SIGMA
or
Which one is for you?
Which one is for you?
COMPARISON
Lean Six Sigma
Lean Six Sigma
Theme of Reduction Waste Variation
Theme of Reduction Waste Variation
Key Justification Speed 3.4 DPMO
Key Justification Speed 3.4 DPMO
Saving from OpCost CoPQ
Saving from OpCost CoPQ
Enhance Value Delivery Quality
Enhance Value Delivery Quality
Phase 1 Learning Curve Short Long
Phase 1 Learning Curve Short Long
Technicality Moderate High
Technicality Moderate High
Project Leadership Kaizen Black Belt
Project Leadership Kaizen Black Belt
Seeking a suitable
IMPROVEMENT
PLATFORM
Integrating Lean and Six Sigma
Lean Sigma
Lean
6 Sigma
combine
Speed
Quality
D I F F E R E N C E
LEAN SIGMA via Pareto Principle
80% of problems come from 20% of the causes
By employing the Pareto s 80/20 rules
80% of benefits can be derived via
application of 20% of the tools at one time
LEAN SIGMA Speed Loop
Search & Select
LeanSigma X-Plan©
Opportunity Analysis Tools Selection
DMAIC
Roll-Out Plan
Improvement Execution
LeanSigma X-Plan©
IT
Level Load/ Pull/
System
TPM Six Sigma
Balanced Flow
Kanban
Quick Batch Cellular/
Poka-Yoke
Technology
Changeover Reduction Layout
Standardized Visual 5S Employee
People
Work Controls Workplace Involvement
Value Analysis
MTS VSM ABC VoC
LEAN SIGMA unique features
Rapid Deployment
Clear Targets
Higher Improvement Yield
Higher Improvement Pace
Benchmark Result
84 companies across 23 industries
40%
35%
30%
38% Preferred Lean Sigma
25%
20%
29% Pursuing Six Sigma
15%
10%
5%
33% Other Approaches
0%
Lean Sigma
Six Sigma
Others
Source : Best Practice llc
 Insights for implementing Lean and Six Sigma and
other productivity platform Survey authorized by
Global Benchmarking Council. August 2003
www3.best-in-class.com/dr97.htm
WHO IS PURSUING
LEAN SIGMA ?
The End
Thank You
Lean Sigma Institute
Penang KL
Tel:[phone] Tel:[phone]
Fax:[phone] Fax:[phone]
Q U E S T I O N S
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A N S W E R S
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