Lean Six Sigma Overview LASSIB http

Lean Six Sigma Overview | LASSIB | http: //www. lassib. org/ Version 1. 0

Industry Snippets* 'No matter which level of Six Sigma training the respondents completed, their average salaries are higher than the respondents who didn't complete any Six Sigma training. ’ 'During the past 10 years Six Sigma has become one of the most widely practiced process improvement methodologies in both service and manufacturing industries. ’ 'GE produces annual benefits of over $2. 5 billion across the organization from Six Sigma. ’ 'The savings as a percentage of revenue for a company can vary from 1. 2% to 4. 5%. ’ 'Lean Six Sigma techniques implemented throughout the Army continue to prove successful, and leaders anticipate reaching a $2 billion-savings mark this year. ’ *Source: Refer to Bibliography for details Lean Six Sigma Overview | LASSIB | http: //www. lassib. org/ Version 1. 0

Examples of Implementations of Lean Six Sigma in the Government Sector • City of Fort Wayne, Indiana – Improved repair of potholes within 24 hours from 77% of 99. 6% – Reduce missed garbage collected from an average of 92 per week to 46 per week – Cost saving of $3. 5 million • Central Intelligence Agency (CIA) – CIA used Six Sigma to improve measures (e. g. date mining process) against terrorism (USA) • Minnesota Pollution Control Agency – Reduced time taken to issue permits from 10% of permits issued within 180 days to, 75% of permits issues in 180 days • Alexandra Hospital, Singapore – With the hospital’s performance standard set at 60 minutes, Total Turnaround Time (TAT) improved by 22%, with over half of our patients leaving the clinic within 1 hour – Income Tax Department – Uses six sigma data analytic tools for identifying Improving Efficiencies does not equate to job cuts Lean Six Sigma for Indian Govt. | August 2011 | LASSIB | http: //www. lassib. org/ 3

Examples of Areas of Improvements within Governments World over • • • Number of steps in a process Number of approvals required Amount of time required to process a request Number of errors during work, requiring re-work Level of user i. e. people satisfaction Amount of duplication of effort Number of mail, phone, and fax requests Number of copies being made Amount of storage space being used and how much is available Source: Lean Six Sigma in the public sector, Xerox Lean Six Sigma for Indian Govt. | August 2011 | LASSIB | http: //www. lassib. org/ 4

What is Lean Six Sigma? A set of proven tools and techniques used to achieve business growth and goals A set of proven tools and techniques used to solve business problems Control Recognize Improve A framework that builds a customer centric approach with a focus on delivering business results Define Analyze Measure Lean Six Sigma Overview | LASSIB | http: //www. lassib. org/ Version 1. 0 A mechanism to develop leadership talent within the organization

Why is it so successful? Lean and Six Sigma (6σ) Skill to deliver business value and customer value A ve si en eh n pr tio m lu Co So Leaders Managers Larger % of Employees in Need of Skills to Deliver Associates % of employees Lean Six Sigma Overview | LASSIB | http: //www. lassib. org/ Version 1. 0 Highest Skill Customer Value and Business Value Medium Skill Lower Skill

Lean vs. Six Sigma LEAN Six Sigma • Eastern Methodology • Started in Japan • Started at Toyota • Western Methodology • Started in U. S. A. • Started at Motorola • Tools and Techniques are • Philosophical • Conceptual • Tools and Techniques are • Methodology Based • Data Based and Objective • Helps identify and capture lowhanging fruit • Helps solve complex problems • Helps deliver quick results • Improvements take 1 week to 3 weeks • Helps deliver long-term results • Improvements take 4 weeks to 6 months • Examples of Techniques • Sort • Standardize • Value Stream Mapping • Examples of Techniques • 7 QC Tools • Design of Experiments • Hypothesis Testing Lean Six Sigma Overview | LASSIB | http: //www. lassib. org/ Version 1. 0

When to use Lean or Six Sigma and When not to use? 4 th Preference 3 rd Preference THUMB RULE 2 nd Preference 1 st Preference Just Do It Lean Six Sigma Overview | LASSIB | http: //www. lassib. org/ Version 1. 0 Ask an Expert Lean Six Sigma

When do Individuals and Organizations fail using Lean and Six Sigma? Lack of focus Projects not business related No focus on change management Why they fail? Lack of mentors Lack of sponsors Under investment INDICATIVE LIST ONLY Lean Six Sigma Overview | LASSIB | http: //www. lassib. org/ Version 1. 0

Historical Perspective 1979: Motorola Starts Six Sigma Initiative 1995: Jack Welch Initiates Six Sigma in GE 1986: Motorola Saves ~$16 Billion 2000: GE Saves ~$2 Billion Annually 1998: Allied Signal Saves ~$1. 2 Billion Lean Six Sigma Overview | LASSIB | http: //www. lassib. org/ Version 1. 0 10

Mean vs. Variation Lean Six Sigma Overview | LASSIB | http: //www. lassib. org/ Version 1. 0 11

Quantitative Perspective 99. 99966% Right (6 Sigma) 99% Right (3. 8 Sigma) No electricity for 7 hours per month No electricity for 1 hour every 34 years 5, 000 incorrect operations per week 1. 7 incorrect operations per week 20, 000 wrong prescriptions per year 68 wrong prescriptions per year σ Defects per Million Opportunities 1 697, 672. 15 2 308, 770. 21 3 66, 810. 63 4 6, 209. 70 5 232. 67 6 3. 40 Lean Six Sigma Overview | LASSIB | http: //www. lassib. org/ Version 1. 0 12

Quantitative Perspective Sigma ( ) Airline fatality rate 0. 52 PPM World Class, Six Sigma 3. 4 PPM 1: 1, 000 Five Sigma 233 PPM Motorola for some of its processes in 1990 Four Sigma 6, 209 PPM 1: 100 Hospital fatality rate due to mistakes Restaurant bills Doctor prescriptions Payroll processing Airline baggage handling Three Sigma 66, 810 PPM Two Sigma 308, 770 PPM Lean Six Sigma Overview | LASSIB | http: //www. lassib. org/ Version 1. 0 13

Statistical Perspective Mean = 20 )s(= 0. 5 6)s( 20 17 6)s( (Upper Specification) 23 (Lower Specification) A defect is any value that falls outside Customer Specifications Lean Six Sigma Overview | LASSIB | http: //www. lassib. org/ Version 1. 0 14

Customers Perspective Six Sigma Starts and Ends with Customers What is my customers view of the process? Are my customers referring and buying again? What do the customers expect out of the process? CUSTOMERS Is my customer satisfaction increasing? What is my customers definition of a defect? How do my customers measure the process? Lean Six Sigma Overview | LASSIB | http: //www. lassib. org/ Version 1. 0 15

Operational Perspective Control Recognize 1. To finalize the prioritized list of initiatives that can be taken up as Six Sigma Projects, to enable delivery of the maximum value to your customers Improve Define Analyze 1. To finalize the prioritized list of initiatives that can be taken up as Six Sigma Projects, to enable delivery of the maximum value to your customers Measure Lean Six Sigma Overview | LASSIB | http: //www. lassib. org/ Version 1. 0 16

Lean Six Sigma vs. ISO 9001 § Primary focus for organizations is certification § Primary focus is on process standardization § Is not prescriptive, i. e. does not tell you how to achieve it Lean Six Sigma § Primary focus for organizations is delivering customer value & results § Process standardization is one part of Lean Six Sigma § Is prescriptive, i. e. teaches you best practice tools to achieve results Lean Six Sigma Overview | LASSIB | http: //www. lassib. org/ Version 1. 0 17

Lean Six Sigma vs. Total Quality Management (TQM) Total Quality Management § Consists of tools and techniques to achieve quality e. g. 5 S, Kaizen § Lacked focus of delivering organizational and customer value, resulting in fading out of management commitment Lean Six Sigma § Structures these tools and techniques, and when to use effectively which one § Focuses on delivering organizational and customer value, resulting in sustaining management commitment § Includes all principles of TQM among others Lean Six Sigma Overview | LASSIB | http: //www. lassib. org/ Version 1. 0 18

Contact WEBSITE http: //www. lassib. org/ EMAIL contact@lassib. org SOCIETY HEADQUARTERS #5 -70, V. V. Nagar, Street No. 8, Habsiguda, Hyderabad, Andhra Pradesh, India - 500007 PHONE India Landline: +91 -40 -40045614 India Fax: +91 -40 -40045615 India Toll-Free: 1 -800 -425 -1388 Lean Six Sigma Overview | LASSIB | http: //www. lassib. org/ Version 1. 0

About the Lean and Six Sigma International Board (LASSIB Society) Shilpa Kota, Secretary, Lean and Six Sigma International Board (LASSIB), A non-profit organization build on the principles of Gandhian Engineering Lean Six Sigma for Indian Govt. | August 2011 | LASSIB | http: //www. lassib. org/ 20

About LASSIB When? Why? Lean Six Sigma for Indian Govt. | August 2011 | LASSIB | http: //www. lassib. org/ • Conceptualized in 2009 • Came into existence in 2010 • Registered in 2011 • Lean Six Sigma concepts are here to stay • Spread the awareness of Lean and Six Sigma concepts • Share learning’s for the community at large http: //www. lassib. org/index. php/about-lassib What? • Lean And Six Sigma International Board • A not-for-profit Society • In area of Lean Six Sigma and Business Excellence