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Flashcards in Introduction Deck (23):
1

Overall Equipment Effectiveness (OEE)?

Rate (% of max) x Availability (% of time) x Quality (% right first time)

2

Operational Excellence is absolute or relative?

Absolute

3

What is lean thinking?

Lean thinking is about accelerating the velocity of any process by doing only the things that add customer value and eliminating other activities that don't (waste)

4

Origins of Lean

Autonomy/ no errors forward
Forms of waste
Production Levelling
Continuous Improvement

5

Lean Principles

Identify Value
Map Value Stream
Create Flow
Establish Pull
Pursue Perfection

6

Focus of traditional improvement programs

Work Longer
Work Harder
Add People
Add Equipment

7

Lean is not about eliminating people...

It is about continuous process improvement, NOT cost reduction through headcount cutbacks

8

What is Six Sigma

Vision
Business Strategy
Goal
Metric
Benchmark
Philosophy
Vehicle for Business Excellence
(Continuous Improvement methodology aimed at reducing and eliminating variation in processes, resulting in financial savings and improved customer satisfaction.)

9

Goal of Six Sigma

Reduce and Control variation in processes

Reduce defects
Increase Yield
Improve Customer Satisfaction
Higher Profit

10

Six Sigma Approach

Practical Problem
Statistical Problem
Statistical Solution
Practical Solution

11

Achieving Six Sigma Performance

Understanding Customer Needs
Simplifying Processes
Reducing Variation

12

DMAIC

Define, Measure, Analyse, Improve, Control

13

What makes Six Sigma successful?

1) Focus on Customers (VoC)
2) Integrates human and process aspects
3) Uses a disciplined approach to problem solving (DMAIC)
4) Organisational Project Infrastructure
5) Active Senior Management leadership and Commitment
6) Significant bottom line financial returns
7) Effective use of statistics
8) Data driven methodology
9) Focuses of solution unknown problems

14

Six Sigma Ranks

Champion
Master Black Belts
Black Belts
Green Belts
Yellow Belts

15

Lean vs Six Sigma

Lean - High Value High cost
Six Sigma - Low Value Low Cost
LSS - COMBO

16

Lean focuses on ...

Dramatically improving flow in the value stream and eliminating waste

17

Lean aims

Elimination of waste
Identification of value stream
Achievement of flow
Pacing by pull
Pursuit of perfection

18

Lean outcome

improved speed

19

Six Sigma focuses on...

eliminating defects and reducing variation in processes

20

Six Sigma aims

DMAIC

21

Six Sigma Outcomes

Reduced Variation

22

Lean and Six Sigma Similarities

Same Objective: continuous and sustainable business process improvement
Focus on business needs defined by the customer
Customer focus
Requires active involvement of all interested
Practical methods, proven to work
Both include a comprehensive tool box improve any business process

23

Lean vs Six Sigma differences

Lean
Focused on flow
Removal of waste
Technically simple
Low investment
Typically non statistical tools
Appropriate for first round of improvements

Six Sigma
Focused on problems with unknown solution
Reduction of defects often through reduction of variation
Technically more difficult
More significant investment
Statistical tools typically used
Appropriate for more complex problems