History Of Six Sigma

Lean Six Sigma

Lean Six Sigma History of Six Sigma

Copyright 2005, AIT Group Inc. All rights reserved.

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Six Sigma History

Copyright 2005, AIT Group Inc. All rights reserved.

Lean Six Sigma

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Six Sigma History

Lean Six Sigma

• Motorola was the first advocate in the 80’s • Six Sigma Black Belt methodology began in late 80’s/early 90’s • More recently, other companies have embraced Six Sigma:

• GE • Allied Signal • Bombardier • Sony • Project implementers names includes “Black Belts”, “Top Guns”, “Change Agents”, “Trailblazers”, etc. • Implementers are expected to deliver annual benefits between $500,000 and $1,000,000 through 3-5 projects per year • Top-down program with Executive and Champion support • Outwardly focused on Voice of the Customer, inwardly focused on using statistical tools on projects that yield high return on investment

Copyright 2005, AIT Group Inc. All rights reserved.

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Six Sigma History

Lean Six Sigma

• Nobody at GE gets promoted without Six Sigma training. • GE annual report examples: • 10-fold increase in life of CT scanner x-ray tubes • Improved yields of super-abrasives – worth a full decade of increased capacity despite growing demands • 62% reduction in turn-around time of railcar leasing repairs • Plastics business added 300 million pounds of new capacity – equivalent to “one free plant”

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How Complex Are Your Products & Services? (% Shippable without Rework) # of Parts or Steps 1 2 3 4 5 10 30 50 100 300 500 1,000 3,000 5,000 10,000

±3σ (Cp=1.00)* 93.32% 87.08% 81.27% 75.84% 70.77% 50.09% 12.56% 3.15% 0.10%

±4σ (Cp=1.33)* 99.38% 98.76% 98.15% 97.54% 96.93% 93.96% 82.96% 73.24% 53.64% 15.43% 4.44% 0.20%

±5σ (Cp=1.67)* 99.98% 99.95% 99.93% 99.91% 99.88% 99.77% 99.30% 98.84% 97.70% 93.26% 89.02% 79.24% 49.75% 31.24% 9.76%

Lean Six Sigma ±6σ (Cp=2.00)* 99.9997% 99.9993% 99.9990% 99.9986% 99.9983% 99.9966% 99.9898% 99.9830% 99.9660% 99.8980% 99.8301% 99.6605% 98.9849% 98.3140% 96.6564%

* Distribution shifted by 1.5σ Copyright 2005, AIT Group Inc. All rights reserved.

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Why 99% Is Not Good Enough

Lean Six Sigma

• The “goodness level” of 99% equates to: • 20,000 lost articles of mail per hour • 5,000 incorrect surgical operations per week • 200,000 wrong drug prescriptions each year • No electricity for almost 7 hours per month

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Six Sigma Defined

Lean Six Sigma

• What Six Sigma Is: • An enabler to business strategy • Places customers at the center of performance improvements • Fact-based approach for improving business processes and solving business problems • A proven methodology and toolset supported by deep training and mentoring • Focused on reducing variability of processes • A way to develop highly skilled business leaders • A means for creating capacity in organizations

• What Six Sigma Is Not: • • • • • •

A business strategy A way to develop statisticians and engineers Only for manufacturing companies Only about “cost reductions” A “flavor of the month” approach An approach that slows decision making and business outcomes Copyright 2005, AIT Group Inc. All rights reserved.

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But Six Sigma Alone Has Holes

Lean Six Sigma

• Six Sigma lacks many concepts and tools lean is strong in • • • • • •

Set-up reduction Waste elimination Mistake Proofing Cycle-time improvement Process simplification Work in process control and reduction

• Six Sigma has long time-lines for projects (4-18 months) compared to Lean (1-4 months) • Six Sigma specialists (Black Belts) are often less productive than Lean specialists • Six Sigma Black Belts do 3-5 projects a year • Dedicated Lean project leaders do 10-20 projects a year

• Six Sigma is often seen as being “too slow” Copyright 2005, AIT Group Inc. All rights reserved.

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Lean Six Sigma

Author

Steven Bonacorsi is a Senior Master Black Belt instructor and coach. He has trained hundreds of Master Black Belts, Black Belts, Green Belts, and Project Sponsors and Executive Leaders in Lean Six Sigma DMAIC and Design for Lean Six Sigma process improvement methodologies. Steven is a board member for the Boston Chapter of the Industry of Industrial Engineers. Full Bio: http://www.linkedin.com/in/stevenbonacorsi • The AIT Group, Inc. Steven Bonacorsi, Vice President Lean Six Sigma Master Black Belt 3135 South Price Road, Suite 115 Chandler, AZ 85248-3549 Phone: +(1) 888.826.2484 E-mail: [email protected] Web: http://www.theaitgroup.com

Copyright 2005, AIT Group Inc. All rights reserved.

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Learn More about The AIT Group http://www.theaitgroup.com

Copyright 2005, AIT Group Inc. All rights reserved.

Lean Six Sigma

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Lean Six Sigma

Who is AIT? • AIT is a premier provider of Lean, Six Sigma and Supply Chain solutions. • Solutions are customized to the customer – not one size fits all. • The company was started in 1998 by three individual that recognized extremely early in the industry how well Lean, Six Sigma and Supply Chain disciplines integrate. • Our goal is the complete transfer of knowledge via client specific solutions – not training. • Your instructors from AIT are Certified Master Black Belts and Lean Experts. • We have worked with many different clients and some of the largest companies in the world. • We have Offices in the US, Europe, Mexico and China.

The AIT Group is an international consulting firm that has been specifically designed to help companies increase profitability by improving overall business performance and customer satisfaction through the integrated application of:

Lean Value $

Supply Chain Mgmt.

Six Sigma www.theAITgroup.com

The AIT Group excels in implementation … not recommendation! Copyright 2005, AIT Group Inc. All rights reserved.

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