Lean Six Sigma

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Overview
What is Lean Six Sigma?
What can Lean Six Sigma do?
How to get started

Lean Six Sigma

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Paths to Cost Reduction

Cut services
Reduce labor (lay-off)
Contract work out
Eliminate product features

Remove roadblocks so your

employees can produce
Assign resources to
bottlenecks
Maximize internal capabilities
Focus on what the customer
wants to buy
Lean Six Sigma

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What is Lean Six Sigma?

Combined 2 industry concepts:
Lean
Six Sigma
Combines problem solving tools:
Kanban

Visual
Mgt.

Kaizen
SPC

JIT - Pull

5S

Setup
Reduction

Value
Stream
Mapping

ANOVA
DOE

Hypothesis
Testing

DFSS
MSA
Root Cause
Analysis

Lean Six Sigma

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Lean
Focus on what is of VALUE to the customer
Separate non-value added from value added
Map the actions required to produce (value stream)
Eliminate activities that do not move the product
closer to its final form

Make the remaining value added activities flow

smoothly
Produce only what customers need (pull)
Continuous improvement
Lean Six Sigma

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Which is the better airline ticket?

Traveling to Groton, CT

Ticket A
$500 round trip
6 hours
3 layovers
Arriving in NYC

Ticket B
$650 round trip
3 hours
1 layover
Arriving in
Groton/New London

What does value mean to you?

Lean Six Sigma

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Lean Philosophy
Value
More to value than just cost
Defined by the ultimate customer Womack
Voice of the Customer (VOC)

Expressed in terms of
A specific product
A function or capability

Questions
What does the customer want to buy?
What would they pay extra for?

Focus on what is of VALUE to the customer

Lean Six Sigma

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Types of Activities
Value-Added
Brings product closer to its final form
Changes the form, fit or function
An activity the customer is willing to pay for

Non-Value-Added
Does not contribute to bringing the product to its final form
Doesnt improve the form, fit, or function of the product or service
on the first pass through the process.
An activity the customer is not willing to pay for
Waste

Separate non value added from value added

Lean Six Sigma

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8 Types of Waste

UNDER-UTILIZED
SKILLS

Steps are wasteful, people are valuable

Lean Six Sigma

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Lean Example
Valve Manufacturing
Objective: Reduce time to produce valves
Solution: Revise process no temporary attachments
Legs
Lifting
Blocks

(2)
Tapped
holes for
lifting

Feet

Lean Six Sigma

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Lean Example
Certification Package
Not Required

Redundant Review

Mill Test Report

Minimize Rework
Lean Six Sigma

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Batch versus Continuous Flow

Batch & Queue Processing
Process
A

Process
C

Process
B

10 Minutes

10 Minutes
10 Minutes
30+ Minutes for order of 10

Continuous Flow
Process Process Process
C
B
A
12 Minutes for
order of 10
Lean Six Sigma

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Lean Approach
Batch

Dept 1

Continuous Flow
Dept 2

IN

From: NAVSEA VSA Training

DONE

OUT
OUT
IN

Dept 3

IN

Dept 4
OUT

IN

IN
OUT

DONE

Batch processing has a direct impact

on the total Work-in-Process
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Lean Approach
Transport

Disassemble
Wait

Remove From
Ship

Start

Broken
Component
= Value Added Time

Set-up

Wait
Machine

Time

From: NAVSEA VSA Training

Transport
Re-Install
Machine

Repaired
Component

Finish

= Non-Value-Added Time (WASTE)

Value-Added time is typically only a small

percentage of the total time
Lean Six Sigma

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Approved for Public Release

Lean Approach

From: NAVSEA VSA Training

Total Lead-time = 48 days

Value added time = 315 secs !!!!
Overtype with Section Title

Lean Six Sigma

Date / Reference / Classification

15

Lean Approach
From: NAVSEA VSA Training

Time

LARGE amount

Small Amount of
Time Eliminated

Traditional Focus
Improve Value-Added
work steps
Better tools, machines,
instructions
Result: Small time
savings

of time saved
Lean Focus
Make all of the Value Stream visible
Reduce or eliminate Non-ValueAdded portions of the process
Result: Large time savings

Time savings have a direct

impact on
Cost
Capacity
Schedule
Flexibility
Resources
Etc.

Lean Six Sigma

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Continuous Flow

Traditional Thinking:
Batch Productionlike a meandering
stream with many stagnant pools,
waterfalls, and eddies
Doubling production rate means
doubling resources

Continuous Flow Thinking:

Pipeline with fast-flowing product
no stops, piles, or back-ups
Doubling production rate means
halving the time waiting

Flow production was an even more valuable innovation of Henry Fords

than his better-known mass production model.
Lean Six Sigma

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How Does Lean

Solve Problems?
Focuses on what is of VALUE to the
customer
Understand customer expectations and
requirements
In terms of the what the product provides,
not just the product itself

Eliminates activities that do not move the

product closer to its final form
Reduces the 8 types of waste

Creates continuous flow

Lean Six Sigma

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Six Sigma Philosophy

Reduce variation
Y=f(X)
Making decisions based on data

Lean Six Sigma

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What is Six Sigma?

Change in quality philosophies
Traditional Goalpost Philosophy
LSL

Taguchi Philosophy
LSL

USL

Loss

Loss

$$

$$

USL

Loss

Loss

$$

$$
Loss

OK

Anything outside
the specification limits
represents quality losses

Any deviation from

the target causes
losses to society
Lean Six Sigma

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How Does Six Sigma Solve

Problems?
Practical Problem
(Define/Measure)

Statistical Problem
(Analyze)

Practical Solution
(Control)

Statistical Solution
(Improve)

Y=f(x)
Lean Six Sigma

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Six Sigma Example

Practical Problem
Pass rate for Technicial Exams was declining

Statistical Problem
Y=f(X)
Y Scores
X

Exam section
Place of training
How often skills are used (experience)
Elapsed time since training

Statistical Solution
3 sections of the exam are the highest trouble spots
Experience is the most significant factor in passing

Practical Solution
Focus training on 3 areas for inexperienced technicians
Lean Six Sigma

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What is Six Sigma?

99.99966% of values are within specifications
m
LSL

USL

ss s

ss s

ss s

Lean Six Sigma

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A6
3s Process

23

Is Six Sigma Overkill?

99.99966% (6s)

99% (3.8s)

20,000 lost articles of

mail per hour
15 minutes of unsafe
drinking water each day
5,000 incorrect surgical
operations per week
2 short or long landings at
most major airports each
day
11 hours of no electricity
per month

7 lost articles of mail per

hour
1 minute of unsafe drinking
water per 7 months
1.7 incorrect surgical
operations per week
1 short or long landing
every 5 years
1 hour of no electricity
every 34 years

Lean Six Sigma

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Pipe Welding Quality

Reduce concave & convex defects in pipe
butt welds
Experimented on the effects of:
Purge pressure
Starting point
Weld segment overlap
Intersegment temperature
Welder technique

Convex

Concave

Identified key factors to control and ones that had no effect

Lean Six Sigma

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Effluent Discharge
Test
Test
Orgs
Orgs

SUBASE
SUBASE

Main
MainStores
Stores
KIT 1

KIT 3
KIT 2

Controlled
Industrial
Facility

Main
Main
Stores
Stores

Controlled
Industrial
Facility

Hardware
Hardware
Stores
Stores

Before

After

Notice Required

Months

Days

Time to assemble

Weeks

Days

Overhead

Direct/Defined

High

Low

Cost
Frustration

Lean Six Sigma

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Value Stream Mapping

Tile Material Manufacturer

Mapped the value stream

Identified key constraints
Implementing just go do its
Identified specific resources needed to support 2 ships
per year
Sub
vendor

Cleaned Day
tank

Order raw
materials and
Day tank

Sub
vendor

EB places
PO with SII

EB / NGNN

Raw
materials

Day tank 1 then 2 to 3

weeks later Day tank
2

3 mixer
batches to fill
1 Day tank

1.5 weeks
Inspect Day
tank

C/T= 1 day
2 person

Receive raw
materials

2 days
2 people

Oven

5 days
0 people

Agitate & oven

1 day
1 person

Combine, mix
& oven

1 day
1.5 people

Combine
mixture in large
tank

1 day
1 person

Make samples
and test them

1 day
2 people

Blend/mix

1 day
1.5 people

Take sample,
cure and test

10 days
1 person

Fill Day tank

1 day
2 people

Lean Six Sigma

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Ways To Get To Six Sigma

Identify critical inputs & control them
Quantifiable management
Measure performance
Decisions based on data

Y=f(x)
Lean Six Sigma

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Ways To Get To Six Sigma

Control Methods
Best Type 1 Corrective Action Countermeasure
Type 2 Corrective Action Flag
SPC/SPM Empowered Operators
Type 3 Corrective Action Inspection
SPC/SPM Operators Not Empowered
Standard Operating Procedure
Warning Signal Used to Detect Defects
SPC/SPM - Wallpaper
Lean Six Sigma

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But we arent mass production

Look for repetition:
Valve manufacturing
Certification package review
Pipe welding
Effluent discharge

Lean Six Sigma

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But we arent mass production

Product Families
Different products that follow the same steps

Processes
Repetitive tasks
For a product
For a service
For just normal day to day activities

If its not the first time, then there is a

process.
Lean Six Sigma

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Supplier Lean Outreach

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Why Supplier Lean Outreach?

Extend Lean and Six Sigma to suppliers
30%
31%
Purchased
Government
Material
Material
Shipyard
Labor
39%

Block III (SSN787) Costs

Lean Six Sigma

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Goal
Conduct joint process improvement projects
with VIRGINIA Class vendors to reduce
defects, and cycle time via the application
of Lean Six Sigma tools and techniques.
Create a win-win between supplier and EB
Tangible improvement
Benefits both companies

Funded for 2 projects/year

Lean Six Sigma

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Methodology
1. Voice of the Customer
All customers not just purchasing

2. Kick-off with Vendor

Identify problems, issues, roadblocks

3. Value Stream Analysis & Development of

Improvement Plan
4. Improvement Plan Execution and
Follow-on Onsites
Lean Six Sigma

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How To Get Started

We all tend to concentrate on taking corrective

actions that we know how to take, not necessarily
concentrating on the problems we should correct
and the actions needed to correct (them).
- Eliyahu Goldratt

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How To Get Started

Involve the employees
Examine the detailed process with them
Empower them to make process changes to:
Eliminate non-value-added steps
Keep adding value continuously without interruptions

Ask the right questions

What can we do to save time?
Not: What can we do to save
money?

Get to the root causes

5-Whys, etc.
Lean Six Sigma

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How To Get Started

Reduce work in process (WIP):

WIP = Waiting = Longer lead times

Delayed sales
Increased expenses
= Less Profit!
Completions

1
6

1
4

1
1

200 Units of Work In Process

Avg.LeadTi me

1
2

1
4

20 Units/Day

Jobs In WIP
200

10 days
Avg.Comple tion Rate 20
Lean Six Sigma

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How To Get Started

Books to read:
Lean Thinking. Womack & Jones
Lean Six Sigma: Combining Six Sigma
Quality With Lean Speed. M. L. George
Theory of Constraints. Goldratt
The Goal. Goldratt

Lean Six Sigma

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How To Get Started

Communicate with Electric Boat
Things you are doing
Ask for clarification on our needs
Voice of the Customer

Lean Six Sigma

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Wrap - Up
What is Lean Six Sigma?
What can Lean Six Sigma do?
How to get started

Lean Six Sigma

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