Lean Six Sigma methodology

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Ramiro Cid | @ramirocid
Lean Six Sigma Methodology

2
Index
1. Concepts Slide 3
2. Introduction Slide 4
3. DMAIC Slide 7
4. Process Mapping Slide 8
5. Fishbone Diagram Slide 9
6. SIPOC Slide 10
7. CTQ’s Slide 11
8. Metrics Slide 12
9. Risk Analysis Slide 13
10. Graphs Slide 14
11. Business Case Slide 15
12. Certifications Slide 16
13. Sources used and webs to expand knowledge Slide 17

Lean:
Created by Toyota on 1989. (Author: Jim P. Womack)
Focus on speed and best cost (efficiency)
Main concepts of this methodology:
Identify and remove 8 wastes: Transport, Inventory, Motion, Waiting, Over production, Over processing, Defects and Skills
Six Sigma:
Created by Motorola on 1985
Focus on effectivity of processes
Some companies who implemented Six Sigma: GE (implemented and refined it), 3M, Airbus, Phillips
Main concepts of this methodology:
1) Statistical number, 2) Methodology (DMAIC), 3) Philosophy on customer focus and in 0 defects.
4) Data driven decisions
1. Concepts

Lean Six Sigma is a process improvement methodology that relies on a collaborative team effort to improve
performance by systematically removing waste, combining Lean and Six Sigma to eliminate the eight kinds of
waste (muda): Transportation, Inventory, Motion, Waiting, Over production, Over processing, Defects, and Skills
(abbreviated as 'TIMWOODS').
The Lean Six Sigma concepts were first published in a book titled Lean Six Sigma: Combining Six Sigma with Lean
Speed by Michael George and Robert Lawrence Jr. in 2002
Lean Six Sigma utilizes the DMAIC (Define, Measure, Analyze, Improve and Control) phases similar to that of Six
Sigma. Lean Six Sigma projects comprise aspects of Lean's waste elimination and the Six Sigma focus on reducing
defects, based on critical to quality (CTQ) characteristics.
In the next slides we will see some tools used by this methodology. To show all them we will include some
examples to show how to use each of them.
2. Introduction

Lean Six Sigma includes concepts of both methodologies.
Six Sigma use statistics tools for characterization and study of the processes, this is the reason of the name, as
sigma is the standard deviation which gives an idea of the variability in a process and the goal of Six Sigma is to
reduce it so that the process is always within the limits set by customer requirements.
1 sigma = 690,000 DPMO = 32% efficiency
2 sigma = 308,538 DPMO = 69% efficiency
3 sigma = 66,807 DPMO = 93.3% efficiency
4 sigma = 6.210 DPMO = 99.38% efficiency
5 sigma = 233 DPMO = 99.977% efficiency
Note: DPMO means “Defects per million opportunities”
2. Introduction

Regarding the other methodology, Lean manufacturing or lean production, often simply "lean", is a systematic
method for the elimination of waste ("Muda") within a manufacturing system. Lean also takes into account waste
created through overburden ("Muri") and waste created through unevenness in work loads ("Mura"). Working from
the perspective of the client who consumes a product or service, "value" is any action or process that a customer
would be willing to pay for.
Lean principles are derived from the Japanese manufacturing industry.
The eight muda are:
1. Transport (moving products that are not actually required to perform the processing
2. Inventory (all components, work in process, and finished product not being processed
3. Motion (people or equipment moving or walking more than is required to perform the processing
4. Waiting (waiting for the next production step, interruptions of production during shift change
5. Overproduction (production ahead of demand
6. Over Processing (resulting from poor tool or product design creating activity
7. Defects (the effort involved in inspecting for and fixing defects
8. Skills (waste of Skills, referred to as "under-utilizing capabilities and delegating tasks with inadequate training)
2. Introduction

ramirocid.com ramiro@ramirocid.com Twitter: @ramirocid 7
3. DMAIC
DEFINE
CONTROL
IMPROVE ANALYSE
MEASURE
Project Charter ü
Process Mapping ü
Fishbone diagram ü
Process Analysis ü
Create Solutions ü
Select Solutions ü
Validate Solutions ü
Implement Solutions ü
Monitoring ü
Documentation ü
What’s my problem ?
How big is my problem ?
What are the root
causes of my problem ?
What is the best
solution ?
How can we sustain the
improvement ?
“Big impact on business
during IT infrastructure
incidents”
SLA’s vs. Resolution time
average
This lack of visibility of critical
information technology is a
problem
To have a monitoring system
connected to Incident
management application
Doing the maintenance and
update of all IT Assets in the
monitoring system
One practical example:

An example of a Process mapping where an IT Incident management:
4. Process Mapping

An example of a Fishbone Diagram where time to resolve an incident is the target and we have 6
different domains: Man, Method, Materials, Mother Nature, Machine and Measurement
5. Fishbone Diagram

An example of a SIPOC table where the different steps we have on Process Mapping are showed
as a table:
6. SIPOC
Supplier Input Process Output Customer
Customer
Call / Email /
Monitoring tool
Notification
Detection
Record in Incident
Management tool
Monitory tool Alarms
Notification
Detection
Record in Incident
Management tool
Infrastructure System logs Analyze
Record in Incident
Management tool
IT Area
Knowledge /
Experience /
Documentation
Corrective action
Record in Incident
Management tool
IT Area Solution found Quality check Notification
Customer Feedback Close incident
Record in Incident
Management tool
IS

An example of a CTQ’s where we could see 3 different aspects of a problem: a) VOC (‘Voice of
Client’) where we include what our customer (internal or external) wants, b) Statements which are
close to the true (possible to get) and finally c) CTQ which is like the SLA of the target we want to
reach.
7. CTQ’s
VOC True need CTQ
"Alarm notification at the
time it happens"
Time [< 5 Minutes]
1 minute to receive the alert on Incident
management from monitoring tool
"I would not need to report
the incident"
0 Incidents
reported by users
All IT assets monitored
"No delays on my process
because IT infrastructure
reason"
Resolution time
following SLAs in
Incident
management tool
Resolution time following SLAs in Incident
management tool

An example of metrics we want to reach using an Incident management tool:
8. Metric
Reference: SLA Interactions or incidents
SLA (Resolution
time objective)
Days
SLA (Resolution
time objective)
Hours
1 - Critical 0,25 6
2 - High 0,25 6
3 - Average 1 24
4 - Low 4 32

An example of Risk Analysis. In spite of is not mandatory to use it on Lean Six Sigma, it is ever
recommended to do it to get the risks of a new project, environment, change, etc. with the target of
reduce as much as possible the residual risk (the risk after apply controls):
9. Risk Analysis
C I A
factor
value
No dual power source in routers
In case some electric
phase is down the router
will be down
2 routers: Main and backup.
Backup router give service in
less than 10 seconds in case
of the main crash. Both are
connected in different
electric phases
x 1 4 1 4
No dual power source in Colt
fibber convertes in front of routers
In case some electric
phase is down the router
will be down
2 routers: Main and backup.
Backup router give service in
less than 10 seconds in case
of the main crash. Both are
connected in different
electric phases
x 1 4 1 4
Router not accessible by in case
WAN connection crashes
In case WAN connection is
down will not be able to
access to manage the
router
have a management
modem connected by an
analogic line to manage the
router by console port
x 1 1 2 2
Router Buenos Aires John Smith Michael Johnson
Location/s Power user Vulnerability description Threat description Existing Controls/practicesAsset Risk Owner ProbabilityImpact
Risk
Value
Assets criticality

In spite of is not mandatory to use them on Lean Six Sigma, it is ever
recommended to do because help us to show data in an easy way so giving us
support to our statements.
We can use MS Excel or similar tools, but we have an specific tool for statistical
data management and graphs called ‘Minitab’ very useful for Lean Six Sigma
projects
10. Graphs

An example of summary of a Business Case (after do all the calculations needed to get the final
figures):
A Business Case is ever needed to justify our investments (CAPEX and/or OPEX) in a project so
for Lean Six Sigma it is important too to do it.
11. Business Case
Gross Profit
Topic Total Cost
Gross Profit 1st year:
Cost of monitoring - Cost of incidents - 10% of saving
because monitoring rollout)
5.530,00 € No profit
Gross Profit next years:
Cost of monitoring - Cost of incidents - 10% of saving
because monitoring rollout)
730,00 € No profit

There are 4 steps to be certificated on Lean Six Sigma:
12. Certifications

 What is Lean Six Sigma | goleansixsigma.com
URL: https://goleansixsigma.com/what-is-lean-six-sigma/
 ‘Lean Six Sigma’ | Wikipedia
URL: https://en.wikipedia.org/wiki/Lean_Six_Sigma
 What is Six Sigma? | AU: T. M. Kubiak and Donald W. Benbow
URL: http://asq.org/learn-about-quality/six-sigma/overview/overview.html
 Six Sigma vs. Lean Six Sigma | Villanova University
URL: http://www.villanovau.com/resources/six-sigma/six-sigma-vs-lean-six-sigma/#.V87e7UYqSJ8
 LSSI – Lean Six Sigma Institute
URL: http://www.leansixsigmainstitute.org/
13. Sources used to expand knowledge

Questions?
Many thanks !
Ramiro Cid
CISM, CGEIT, ISO 27001 LA, ISO 22301 LA, ITIL
ramiro@ramirocid.com
@ramirocid
http://www.linkedin.com/in/ramirocid
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Lean Six Sigma methodology

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Lean Six Sigma methodology