LEAN SIX SIGMA YELLOW BELT HANDBOOK POWERED BY THE GREEN DOT ACADEMY Shining light on new thinking. 2 TABLE OF CONTENTS Yellow Belt Learning Objectives ............................................................. 4 History and Background of Lean Six Sigma ........................................... 5 Origins of Lean Six Sigma ............................................................................ 5 Six Sigma Gurus ........................................................................................... 6 Lean Gurus ................................................................................................... 7 Benefits of Lean Six Sigma ........................................................................... 8 Revisiting DMAIC ......................................................................................... 9 Applying 5s ................................................................................................. 11 Yellow Belt Toolset, Skillset, and Mindset ........................................... 13 A3 Problem-Solving .................................................................................... 13 Importance of Data .................................................................................... 15 Voice of the Customer ................................................................................ 16 Cost of Quality ............................................................................................ 17 Going to the Gemba ................................................................................... 18 Exploring Root Cause ................................................................................. 19 Barriers Analysis (aka Murphy’s Analysis) .................................................................... 19 Process Mapping and Waste Flow Analysis .................................................................. 20 5 Why’s .................................................................................................................... 22 Fishbone .................................................................................................................. 23 Revisiting Waste ........................................................................................ 24 Prioritizing Ideas for Improvement ........................................................... 25 Dot Voting ................................................................................................................ 25 PICK Chart ............................................................................................................... 26 PDCA .......................................................................................................... 27 Collecting Lessons Learned ........................................................................ 28 Yellow Belt Summary ........................................................................... 30 3 YELLOW BELT LEARNING OBJECTIVES The Yellow Belt is someone who is well-versed in the basic Lean Six Sigma improvement tools. The Yellow Belt’s primary focus is to facilitate local-level improvement that targets reducing waste. We are super pumped that you are nerding out with us and selected us to be your mentor and advisor as you embark on your learning journey. Many of the topics we discuss in this learning experience are publicly available. If you don’t find what you are looking for in our training, check out some of the other resources that exist out there. Just to level set, this is an overview course. It is a starting point. If you want to grow your understanding of Lean Six Sigma you are going to have to be resourceful and do research and learning outside of this curriculum. If this stuff wets your whistle, then we'd encourage you to participate in our more advanced learning experiences. Lean Six Sigma is a huge Body of Knowledge and we are just scratchy the surface of the nerdy things that exist within the expansive improvement world. 4 HISTORY AND BACKGROUND OF LEAN SIX SIGMA ORIGINS OF LEAN SIX SIGMA The origins of Lean thinking and Six Sigma can be traced back over a century as industry tried to move from craft production to mass production, and later to automation. The term “Six Sigma” was coined at Motorola Corporation in 1980 as they embarked on their quality improvement journey. The term “Lean” was coined by John Krafcik in 1988 in his article “Triumph of the Lean Production System”. An article written about Toyota. 5 SIX SIGMA GURUS Walter A. The Father of Statistical Quality Control. Shewhart Economic Control of Quality of Manufactured Product (1931) Proposed the use of control charts for monitoring processes, bringing together the functionality of statistics, engineering, and economics. Pioneers the Plan-Do-Check-Act (PDCA) cycle. W. Edwards In the 1950’s, Deming worked closely with Japanese businesses during the Deming post WWII rebuilding efforts. During that time, Deming introduced statistical control methods to Japanese manufacturing. Creates “Deming’s 14 Points of Management” to help highlight how to lead continuous improvement. Joseph M. Introduced the concept of cost of poor quality through “Juran’s Trilogy” - an Juran approach to cross-functional management that is composed of three managerial processes: quality planning, quality control, and quality improvement. Armand V. Introduced the concept of Total Quality Control (TQC), which later became Feigenbaum known as Total Quality Management (TQM), which is an effective system for integrating the quality development, quality maintenance, and quality improvement efforts of the various groups in an organiZation so as to enable production and service at the most economical levels which allow full customer satisfaction. Kauro Introduced cause and effect (also known as the fishbone diagram) to Ishikawa quality management. Introduced the concept of quality circles, which is a volunteer team of workers who are trained to identify, analyze, and solve work-related problems. The objective of the team is to communicate problem areas to management so that quality can be improved. Genichi Taguchi’s Loss Function – stated that loss in value increases as Taguchi variation increases. Used statistical methods to control manufacturing quality, understood that variation caused loss in product value. Bill Smith “Father of Six Sigma”. Combined years of quality improvement efforts to create the practice of Six Sigma. In 1988, leveraged Six Sigma methodology to turn around Motorola’s operations and quality, helping the organization win the coveted Malcolm Baldrige National Quality Award. Mikel Harry SummariZed Motorola’s approach to improvement and packaged as a training curriculum for managers. Founded the Six Sigma Academy in 1994. Key contributor and author of current day Six Sigma practices 6 LEAN GURUS Henry Ford In 1901, founded the Ford Motor Company. Leveraged mass production to bring the Model T to market at an affordable price, which decreased over time. Vehicle price was $825 in 1908, by 1916 the Model T sold for $360. Frederick American mechanical engineer who was one of the intellectual leaders of Taylor the Efficiency Movement. Created the Principles of Scientific Management which highlighted how to divide work equally between managers and workers. This laid the foundation for science behind time motion studies. Sakichi Founder of Toyota and Father of the Japanese Industrial Revolution. Toyoda Developed the concept of “jidoka” (smart automation). Also developed the concept of 5 Why. Kiichiro Son of Sakichi Toyoda. Installed waste reduction principles and Just-In Toyoda Time approaches to help the Toyota Motor Company reduce costs and improve efficiency during its post-WWII rebuilding efforts. Eiji Toyoda Created the “Toyota Way” as a lean culture based on the concept of “Kaizen” and continuous improvement. Taiichi Ohno Japanese businessman who contributed to the creation of Toyota Production Systems (TPS). PopulariZed the concept of Just-In Time (JIT). Created the “Seven Wastes” model to help companies reduce wasteful activities in their operations. Shigeo Considered the world’s leading expert on manufacturing practices and the Shingo Toyota Production System. Collaborated with Norman Bodek to translate Japanese lean training principles into the English language. PopulariZed the concepts of “pull” and poka yoke. James P. The founder and senior advisor to the Lean Enterprise Institute, Inc. which Womack seeks to advance a set of ideas known as lean production and lean thinking, based initially on Toyota’s business system and now being extended to an entire lean management system. John Krafcik Will working at the Lean Enterprise Institute, Inc. John Krafcik coined the term “Lean”. Michael After traveling to Japan to learn Lean, Michael Gorge returned to the USA to Gorge create a successful consulting group, The Gorge Group, providing Lean consulting services. Michael George has authored various Lean Six Sigma books and training resources. 7 BENEFITS OF LEAN SIX SIGMA Lean Six Sigma has multiple benefits. Almost too many to list. Lean Six Sigma is about creating a culture of continuous improvement. A culture in which everyone within the organization is striving for excellence in order to better serve the customer. Lean Six Sigma is about consistently delivering value to the customer, without defects. A process that is performing at Six Sigma will yield a defect-free rate of 99.99966%. This means that per million opportunities, only 3.4 defects would be observed.