# Presentation: 934048

## Implementing a Successful Lean Six Sigma Program

- Leon Spackman
- LSS MBB, PMP
- PMC Solutions
*A Business Process Management Company*

**Notes:**
Welcome  Business Process Management  Denise
Training Materials – 
Sticky Notes
PMC Pens
Presentation Printouts
Flip Charts
Markers
Process Dev. Worksheet
LCD Projector
Laptop
USB Key
Evaluation forms, both sessions.

## Overview			

- Training Requirements
- Resources and Timeline
- Pitfalls and Lessons Learned
- Summary

**Notes:**
How to tie to documentation – Relationship between documentation and mapping.  
#1 – Understanding ..... In relation to the documentation.  
Business Quality Tools

## What is Lean?

- Process improvement methodology developed in manufacturing (Toyota Production System has led the way)
- Focuses on value to the customer by eliminating waste in the process
- Increases speed in our processes
- Effective in both service and manufacturing

## What is Six Sigma?

**A Philosophy**
- Customer Critical To Quality (CTQ) criteria
- Fact-driven, measurement-based, statistically analyzed prioritization
- Controlling the input & process variations-- yields a predictable product
- Relentless pursuit to drastically reduce variation and manage whatever variation is left over
- Critical and analytical thinking to solve problems
**A Quality Standard and Level**
- 6 = “Z”value of 6 = 3.4 DPM (DPMO) = 1.5 Cpk = 2.0 Cp = 99.99966 FPY

## What is Six Sigma?

**A Structured Problem-Solving Tool/System/Approach**
- Phased project:  Define, Measure, Analyze, Improve, Control (DMAIC)
- Common language & definitions for verifying and solving problems
**A Program**
- Dedicated, trained Black Belts, Green Belts, Champions, Master BB’s
- Prioritized projects with teams - Process participants & owners
- Program reviews, Steering Committee

## Six Sigma Methodology

| Steps | Tools |
| --- | --- |
| Define | SIPOC/Process Maps |
| Measure | Process Capability/ Pareto/Histogram |
| Analyze | Fishbone/Statistical Tools |
| Improve | Decision Matrix |
| Control | SPC/Mistake Proofing |

## Lean Six Sigma Combined

- Combination of thought and tools of both methodologies to improve process cycle time, reduce waste, minimize variation, and improve customer satisfaction.

**Lean**

**Six Sigma**

**Lean Six Sigma **
**    ****Application**

## Training Requirements

- Orientation for Steering Group and others—One day
- Six Sigma Green Belt Certificate:  40-80 hours of classroom + completion of project (40-60 hrs)
- Six Sigma Black Belt Certificate:  160 hours of classroom + completion of project (60-100 hrs)
- Lean certification:  40-60 hours of classroom + completion of project (40-60 hrs)
- Combine Lean certification with Green and Black Belt
- Specialty focus available:  Manufacturing, Supply, Healthcare, Finance, etc.

## Resources for a LSS Program

- Steering Group
- LSS Training
- Ongoing commitment for project management and teams
- Continued Training

## Resources

- Steering Group
-  Comprised of senior leaders
-  General knowledge of LSS
-  Oversee LSS program
- Provide overall guidance and policy
- Select projects
- Select personnel to participate in program
- Review and monitor projects
- Act as champions if needed

## Resources

- Training
- Green Belt  $2000-$3000 (per person)
- Black Belt $5000-$10,000 (per person)
- Lean $2000-$3000 (per person)
- Add project time of 40-100 hours (per person)

## Resources

- Project Management
- How many projects per year?
- How much time will be allotted per individual?
- Teams are critical (3-5 per team)
- Green Belts 20-30% of time on projects
- Black Belts 100% on projects

## Resources

- Ongoing Training
- Does everyone get trained and at what level?
- Do trained personnel get further training?
- New personnel
- Training must be ongoing if the program is to be viable and effective

## Resources

**Is the investment worth it?**
- Motorola from 1987 to 1997:
- Five-fold growth in sales, with profits climbing nearly 20 percent per year
- Cumulative Six Sigma savings estimated at $20 Billion
- Motorola stock annual gains of 21.3 percent

## Resources

**Is the investment worth it?**
- General Electric
- Launched Six Sigma in 1995
- Operating margins above 15 percent
- Estimated savings of over $15 Billion
- City of Fort Wayne, Indiana
- Reduced city lighting inventory by 50%  ($500,000 savings)
- Reduced pothole response from 5 days to 3 hours

## How to Deploy LSS with Baldrige

- Map processes related to all MB categories
- Manage using process thinking
- Establish a culture of improvement
- Encourage suggestions from employees and customers
- Listen to those who run the process
- Assign a quality manager (part or full time)
- Train in basics of LSS culture of improvement

## Process Mapping

- Before we can manage processes, we must identify, define, and centralize them
- Provides a clear, visual way to examine processes
- Helps identify redundancies, waste, and weaknesses
- Assists in managing across functions

**Notes:**
This brings me back to the whole point of my discussion today, process mapping for continuous improvement

## Why Map Processes?

**The way it **_**really**_** functions.**

**What the customer expects, and is willing to pay for.**

**The way you **_**think**_** it is.**

**Notes:**
Because in our organizations, we have these three dynamics going on...
Question  How many of you have had to take the lead on a problem solving project?
Which version of the process flow for that problem did you use?
Denise

Denise

## Mapping Tips

- Keep it simple but include all necessary detail
- Start every task with an action verb
- Ensure every decision leads to ‘yes’ and ‘no’ outputs
- Use only the simplest standard flowcharting symbols
- Walk the line—verify the process

## How to Deploy LSS with Baldrige

- Identify biggest problem (Pain)—Link to Strategic Initiatives
- Run LSS project--focus on solving that issue (outside facilitator to help)
- Tell the success story
- Provide In-depth LSS training for a few employees
- Pick next two projects...etc.

## Timeline

- Plan on two years to implement a program
- Culture must change
- Training and understanding takes time
- Resources are limited
- Projects take between 2-6 months

## Timeline

- Decision -Write Guidelines

- Establish
- Steering
- Group

- Select
- First Project

- Select
- and
- Train

- Complete
- Project

- Tell
- Success

- Start
- Next Project

- Select
- and
- Train

- Review

**First Year**

- Tell
- Success

## Timeline

- Strengthen
- Steering
- Group

- Select
- Next Projects

- Select
- and
- Train

- Complete
- Project

- Tell
- Success

- Start
- Next Projects

- Select
- and
- Train

- Review

**Second Year**

- Tell
- Success

- Select
- Org
- Lead

## Pitfalls and Suggestions

- Identify maturity level
- Link process improvement to strategic plan and establish criteria for success
- Allocate appropriate resources
- Provide appropriate training
- Be reasonable about expectations
- Coordinate throughout your organization
- Tell the successes
- Reward success
- Be patient

## Summary

- Lean Six Sigma—Process improvement methodology to reduce waste and variation
- Extensive training requirements
- Requires resources and time
- Avoid pitfalls and plan for the long term

## Challenge

-   “*We are what we repeatedly do.  Excellence, therefore, is not an act but a habit.”*
- 				-- Aristotle

## Additional Resources

- _[www.lean.org](http://www.lean.org/)_
- Lean Certification Body of Knowledge—Defense Acquisition University
- _[www.acc.dau.mil](http://www.acc.dau.mil/)_
- _[www.asq.org](http://www.asq.org/)__  American Society for Quality_
- Northwestern Wisconsin Manufacturing Outreach program
- www.uwstout.edu/outreach/conf/lcp/index.htm

## Questions

- Leon Spackman
- PMC Solutions
- _[lspackman@pmcsolutions.com](mailto:lspackman@pmcsolutions.com)_
- (505) 462-3184 (Work)
- (505) 401-8850 (Cell)
- _[www.pmcsolutions.com](http://www.pmcsolutions.com/)_
- _www.inprocess.com_

**Notes:**
Denise