Thursday, September 8, 2022

Modern Industrial Engineering - Lean Six Sigma Approach

 

F.W. Taylor pioneered productivity improvement, engineering and management around 1883 in Midvale Steel. He started a section to specialize in this activity in 1885. He informed his initiative to wider audience in 1895. He explained the modern shop management process proposed by him in a paper (book size) titled "Shop Management" in 1903. He explained his approach in a more focused way in his book "Scientific Management." This book was focused on human effort aspects and the principles were written with application in human effort productivity management. In 1908, the academic discipline of industrial engineering was started. Prof Diemer started in Penn State. In Columbia University also, an attempt was made by C.B. Going to explain the subject content of industrial engineering.

Principles of Industrial Engineering - Taylor - Narayana Rao - IISE 2017 Pittsburgh Conference Paper.

https://www.youtube.com/watch?v=pU8CdWfZZdU

Industrial Engineering is Redesign of Products and Processes in Different Technologies for Productivity Improvement.


Lean Six Sigma is a new approach that combines six six approach to defect reduction and lean thinking approach to reduce waste. Lean can be characterised as a subset of industrial engineering with focus reducing inventory and thereby reducing additional cost of inventory holding and related ordering. In the process of inventory reduction, Toyota identified many more inefficiencies and developed methods and procedures to eliminate them. Modern industrial engineering can be understood and appreciated better by studying the evolution and the current subject content of lean six sigma certification and practice.

Source Book for the Content in the article

The Lean Six Sigma Black Belt Handbook: Tools and Methods for Process Acceleration

Frank Voehl, H. James Harrington, Chuck Mignosa, Rich Charron

CRC Press, 09-Jul-2013 - Business & Economics - 621 pages


Although Lean and Six Sigma appear to be quite different, when used together they have shown to deliver unprecedented improvements to quality and profitability. The Lean Six Sigma Black Belt Handbook: Tools and Methods for Process Acceleration explains how to integrate these seemingly dissimilar approaches to increase production speed while decreasing variations and costs in your organization.

Presenting problem-solving tools you can use to immediately determine the sources of the problems in your organization, the book is based on a recent survey that analyzed Six Sigma tools to determine which are the most beneficial. Although it focuses on the most commonly used tools, it also includes coverage of those used a minimum of two times on every five Six Sigma projects.

Filled with diagrams of the tools you’ll need, the book supplies a comprehensive framework to help you for organize and process the vast amount of information currently available about Lean, quality management, and continuous improvement process applications. It begins with an overview of Six Sigma, followed by little-known tips for using Lean Six Sigma (LSS) effectively. It examines the LSS quality system, its supporting organization, and the different roles involved.

Identifying the theories required to support a contemporary Lean system, the book describes the new skills and technologies that you need to master to be certified at the Lean Six Sigma Black Belt (LSSBB) level. It also covers the advanced non-statistical and statistical tools that are new to the LSSBB body of knowledge.

Presenting time-tested insights of a distinguished group of authors, the book provides the understanding required to select the solutions that best fit your organization's aim and culture. It also includes exercises, worksheets, and templates you can easily customize to create your own handbook for continuous process improvement.

Designed to make the methodologies you choose easy to follow, the book will help Black Belts and Senseis better engage their employees, as well as provide an integrated and visual process management structure for reporting and sustaining continuous improvement breakthroughs and initiatives.

https://books.google.co.in/books?id=EHcVk4K6HcEC


Lean Six Sigma increases the focus on Lean approaches with less emphasis on the statistical rigor included in the Six Sigma methodology alone.

—H. J. Harrington


Lean Six Sigma  creates a value stream map of the process identifying value add and non-value add costs, and captures the Voice of the customer to define the customer Critical To Quality issues. Projects within the process are then prioritized based on the delay time they inject. This prioritization process  pinpoints activities with high defect rates ( to be reduced by Six Sigma tools) or long setups, downtime (to be reduced by Lean tools), with the result often yielding savings of $250,000 and a payback ratio between 4−1 and 20−1.

—Michael George, Lean Six Sigma expert and one of the founding fathers


Often just giving new terms or new names to already established approaches rekindles interest in that approach. This  can revive the executive team’s interest because it is not viewed as the same old thing.


Lean Six Sigma (LSS): The LSS methodology is an organization-wide operational philosophy that combines two of today’s most popular performance improvement methodologies: Lean methods and the Six Sigma approach. The objective of these approaches is to eliminate nine kinds of wastes (classified as defects, overproduction, transportation, waiting, inventory, motion, overprocessing, underutilized employees, and behavior waste) and provide goods and services at a rate of 3.4 defects per million opportunities (DPMO).

The Lean approach was born in the early 1900s with F.W. Taylor and  F.B. Gilbreth’s time and motion studies, wherein the one best way of doing a thing was promoted. This, in conjunction with Henry Ford Sr.’s Assembly-line Production System, gave significant productivity improvement and cost reduction.  Toyota made use of this as a foundation and improved upon it to develop Toyota’s manufacturing system. Today’s approaches to Lean, conceptualized by MIT research team (Womack and Jones) are based upon Toyota’s very successful manufacturing system.

Six Sigma Quality became popular in the United States immediately following Motorola winning the 1988 Malcolm Baldrige National Quality Award. The information package that Motorola distributed to explain its achievements stated: “To accomplish its quality and total customer satisfaction goals, Motorola concentrated on several key operational initiatives. At the top of the list is Six Sigma Quality, a statistical measure of variance from a desired result. In concrete terms, Six Sigma translates into a target of no more than 3.4 defects per million opportunities. At the manufacturing end, this requires robust designs that accommodate reasonable variation in component parts while providing consistently uniform final products. Motorola employees record the defects found in every function of the business and statistical technologies are made part of each and every employee’s job.”

Although Six Sigma was originally designed as an approach to reduce variability, quality professionals and consultants added to the basic statistical approaches a number of additional techniques that focus on process improvement.

By the time GE embraced Six Sigma, it realized that the major gains from a performance improvement initiative would be reached by focusing on streamlining the processes by reducing cost and cycle time. Along with this new emphasis came a new set of measurements focusing on cost reduction, decreased cycle time, inventory turns, etc. The basic Six Sigma approach of Define, Measure, Analyze, Improve, and Control (DMAIC) was modified with the addition of an approach of Define, Measure, Analyze, Design, and Verify (DMADV). Many of the Lean tools became part of the Six Sigma body of knowledge.

News - Information for Industrial Engineering Analysis of Delays in Processes

http://nraoiekc.blogspot.com/2020/07/news-information-for-analysis-of-delays.html


Business Process redesign methodologies roots stem from the poor-quality cost studies that IBM conducted in the indirect (support) areas during the 1970s. This evolved into the business process improvement methodologies that they developed during the early part of the 1980s. These approaches were further defined and developed by Ernst & Young and published in the 1991 book entitled Business Process Improvement—The Breakthrough Strategy for Total Quality Productivity and Competitiveness, published by McGraw-Hill, New York. Additional depth was added to the process improvement focus when Michael Hammer and James Champy published their 1993 book entitled Reengineering the Corporation, published by Harper Business, New York.

Business Process Efficiency Engineering - Industrial Engineering Through Information Technology.

http://nraoiekc.blogspot.com/2013/06/business-process-efficiency-engineering.html

Process design and improvement professionals must first understand their level of process maturity to choose the appropriate blend of Lean and Six Sigma methods and tools. 

Due to the heavy focus on statistical applications and extensive amount of time and training that was required to prepare individuals to use these tools, a unique organizational structure was established that allowed different titles to be used in support of the successful deployment at GE. It created an innovative recognition system called Black Belt Program to support its Six Sigma Quality Program.


 In many cases the Black Belts were expected to save the organization a minimum of $1 million a year or they would be reassigned.

LSS does not ignore measurement where it is required, but does not rely upon it absolutely as Six Sigma does.

One LSSBB for every 100 employees is the standard practice. (Example: A small organization with only 100 employees needs only one LSSBB or two part-time LSSBBs.)


 LSSBBs should generate a minimum of US$1 million in savings per year as a result of their direct  activities.


A typical LSSBB spends his/her time as follows:

35% running projects that he/she is assigned to lead

20% helping LSSGBs who are assigned to lead projects

20% teaching either formally or informally

15% doing analytical work

10% defining additional projects


The American Society for Quality (ASQ) recommends a 4-week class to train LSSBBs. Typical subjects that are covered are:


1. Define and measure phase tools

2. Introduction to Minitab

3. Introduction to iGrafx

4. Lean overview

5. Probability concepts

6. Basic statistics

7. Documenting the process

8. Measurement systems evaluation (gauge R&R)

9. Basic statistics and introduction to process capability

10. Advanced process capability concepts

11. Process simulation

12. Graphical analysis

13. Project management

14. Program and training expectations

15. Analysis phase tools

16. Failure modes and effects analysis

17. Central limit theorem

18. Confidence intervals

19. Introduction to hypothesis testing

20. T-tests

21. Hypothesis testing with discrete data

22. Power and sample size

23. Correlation and regression

24. Logistic regression

25. Testing for equal variances

26. Analysis of variance (ANOVA)

27. Nonparametric statistics

28. Analyze phase deliverables

29. Design of experiments

30. Full factorial designs

31. Fractional factorial experiments

32. Simulating designed experiments

33. Creating future state maps

34. Center points in two-level designs

35. Response surface designs (supplement)

36. Analyzing standard deviation

37. Statistical process control

38. Husky bracket exercise (Lean/flow and work-in-process (WIP))

39. Design for Six Sigma

40. Creating acceptance sampling plans

41. Standard work

42. Statistical tolerancing

43. Mistake proofing

44. Developing control plans





Lean Six Sigma Green Belt (LSSGB)

One Lean Six Sigma Green Belt (LSSGB) for every 20 employees and 5 LSSGBs per every LSSBB is the standard practice. (Example: A small organization with 100 employees needs 1 LSSBB and 5 LSSGBs.)


ASQ conducts a 2-week course on LSS for Green Belts. Typical subjects 

that are covered during this class include:

1. Process mapping

2. Introduction to Minitab

3. Probability and basic statistics

4. Rolled throughput yield

5. Process capability

6. Failure mode and effects analysis

7. Basic tools

8. Confidence intervals

9. Measurement system analysis (gauge R&R)

10. Hypothesis testing

11. Project management

12. Correlation and regression

13. Analysis of variance

14. Randomized blocks

15. Design of experiments

16. Full factorial experiments

17. Acceptance sampling plans

18. Statistical process control

19. Control planning and application

20. Mistake proofing



Lean Six Sigma Yellow Belt (LSSYB)

One Lean Six Sigma Yellow Belt (LSSYB) for every five employees and four LSSYBs for every LSSGB is the standard practice. (Example: A small organization with 100 employees needs only 1 LSSBB, 5 LSSGBs, and 20 LSSYBs.)


Lean Six Sigma Blue Belt


All employees should be trained as LSS Blue Belts as a standard practice. 

LSS Blue Belts are the normal workforce and may never be assigned to a 

LSST. However, they need to be part of the LSS culture and know how to 

apply LSS concepts to their day-to-day activities. They will receive 2 to 3 

days of training covering the following subjects:

How teams function

What the Six Sigma processes are about

How Six Sigma applies to them

How to define who their customers are

The seven basic problem-solving tools

How to flowchart their process

Area activity analysis

How to participate in the suggestion program

How to participate in “quick and easy Kaizen”


LSS Blue Belt activities drive continuous improvement throughout the organization. Their efforts should result in a 5 to 15% improvement in all the organization’s measurements.

More articles on various other chapters of the book will be published in due course of time.

Next article

Process Improvement  -  Lean Six Sigma Approach - Modern Industrial Engineering

-----------------------

Lean Six Sigma: Combining Six Sigma Quality with Lean Production Speed

Michael L. George

McGraw Hill Professional, 16-May-2002 - Business & Economics - 300 pages

The Breakthrough Program for Increasing Quality, Shortening Cycle Times, and Creating Shareholder Value In Every Area of Your Organization


Time and quality are the two most important metrics in improving any company's production and profit performance. Lean Six Sigma explains how to impact your company's performance in each, by combining the strength of today's two most important initiativesLean Production and Six Sigmainto one integrated program.


The first book to provide a step-by-step roadmap for profiting from the best elements of Lean and Six Sigma, this breakthrough volume will show you how to:


Achieve major cost and lead time reductions this year

Compress order-to-delivery cycle times

Battle process variation and waste throughout your organization

Separately, Lean Production and Six Sigma have changed the face of the manufacturing business. Together, they become an unprecedented tool for improving product and process quality, production efficiency, and across-the-board profitability. Lean Six Sigma introduces you to today's most dynamic program for streamlining the performance of both your production department and your back office, and providing you with the cost reduction and quality improvements you need to stay one step ahead of your competitors.


"Lean Six Sigma shows how Lean and Six Sigma methods complement and reinforce each other. If also provides a detailed roadmap of implementation so you can start seeing significant returns in less than a year."--From the Preface


Businesses fundamentally exist to provide returns to their stakeholders. Lean Six Sigma outlines a program for combining the synergies of these two initiatives to provide your organization with greater speed, less process variation, and more bottom-line impact than ever before.


A hands-on guidebook for integrating the production efficiencies of the Lean Enterprise with the cost and quality tools of Six Sigma, this breakthrough book features detailed insights on:


The Lean Six Sigma Value Proposition How combining Lean and Six Sigma provides unmatched potential for improving shareholder value

The Lean Six Sigma Implementation Process How to prepare your organization for a seamless incorporation of Lean Six Sigma tools and techniques

Leveraging Lean Six Sigma Strategies for extending Lean Six Sigma's reach within and beyond your corporate walls

"Variation is evil."--Jack Welch


Six Sigma was the zero-variation quality lynchpin around which Jack Welch transformed GE into one of the world's most efficient and valuable corporations. Lean Production helped Toyota cut waste, slash costs, and substantially improve resource utilization and cycle times.

Yet, as both would admit, there was still room for improvement.

Lean Six Sigma takes you to the next level of improvement, one that for the first time unites product and process excellence with the goal of enhancing shareholder value creation. Providing insights into the application of Lean Six Sigma to both the manufacturing processes and the less-data-rich service and transactional processes, it promises to revolutionize the performance efficiencies in virtually every area of your organization as it positively and dramatically impacts your shareholder value.

https://books.google.co.in/books?id=PIFzgiznTp8C


The Ten Commandments of Lean Six Sigma: A Guide for Practitioners

Jiju Antony, Vijaya Sunder M, Chad Laux, Elizabeth Cudney

Emerald Group Publishing, 29-Nov-2019 - Business & Economics - 160 pages

Lean Six Sigma is a powerful methodology that reduces waste and variation in an organization and ultimately minimizes operating costs, optimizes productivity, and maximizes customer satisfaction. The success stories speak for themselves, but not all LSS stories have a happy ending, and a large body of scholarly research shows why. What is needed now is a set of accessible general guidelines for organizations seeking to implement and sustain such a powerful, but at times perilous, continuous improvement strategy.

The Ten Commandments of Lean Six Sigma provides just that, offering guidance from the perspective of practitioners, researchers and academics who have been involved in training, teaching, researching and consulting on various topics of quality and continuous improvement such as Lean, Six Sigma and LSS. Delving into the cutting edge of business process enhancement, this book is an essential and practical guide for senior managers and executives who want to achieve operational and service excellence in manufacturing, service and public sector organizations of any size.

https://books.google.co.in/books?id=2NC-DwAAQBAJ


The Lean Six Sigma Black Belt Handbook: Tools and Methods for Process Acceleration

Frank Voehl, H. James Harrington, Chuck Mignosa, Rich Charron

CRC Press, 09-Jul-2013 - Business & Economics - 621 pages


Although Lean and Six Sigma appear to be quite different, when used together they have shown to deliver unprecedented improvements to quality and profitability. The Lean Six Sigma Black Belt Handbook: Tools and Methods for Process Acceleration explains how to integrate these seemingly dissimilar approaches to increase production speed while decreasing variations and costs in your organization.


Presenting problem-solving tools you can use to immediately determine the sources of the problems in your organization, the book is based on a recent survey that analyzed Six Sigma tools to determine which are the most beneficial. Although it focuses on the most commonly used tools, it also includes coverage of those used a minimum of two times on every five Six Sigma projects.


Filled with diagrams of the tools you’ll need, the book supplies a comprehensive framework to help you for organize and process the vast amount of information currently available about Lean, quality management, and continuous improvement process applications. It begins with an overview of Six Sigma, followed by little-known tips for using Lean Six Sigma (LSS) effectively. It examines the LSS quality system, its supporting organization, and the different roles involved.


Identifying the theories required to support a contemporary Lean system, the book describes the new skills and technologies that you need to master to be certified at the Lean Six Sigma Black Belt (LSSBB) level. It also covers the advanced non-statistical and statistical tools that are new to the LSSBB body of knowledge.


Presenting time-tested insights of a distinguished group of authors, the book provides the understanding required to select the solutions that best fit your organization's aim and culture. It also includes exercises, worksheets, and templates you can easily customize to create your own handbook for continuous process improvement.


Designed to make the methodologies you choose easy to follow, the book will help Black Belts and Senseis better engage their employees, as well as provide an integrated and visual process management structure for reporting and sustaining continuous improvement breakthroughs and initiatives.

https://books.google.co.in/books?id=EHcVk4K6HcEC


The Lean Management Systems Handbook


Rich Charron, H. James Harrington, Frank Voehl, Hal Wiggin

CRC Press, 11-Jul-2014 - Business & Economics - 549 pages


Performance management, the primary focus of a Lean organization, occurs through continuous improvement programs that focus on education, belief systems development, and effective change management. Presenting a first-of-its-kind approach, The Lean Management Systems Handbook details the critical components required for sustainable Lean management.

https://books.google.co.in/books?id=cYHOBQAAQBAJ


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