Lean 6 Sigma Toolkit

Overview
Introduction

• This Toolkit was created by ex-McKinsey, Deloitte and BCG Management

Consultants specialized in Lean Six Sigma. It includes all the Frameworks, Best
Practices & Templates required to adopt and implement Lean 6 Sigma within your
organization using the world-class DMAIC approach. Build success stories such
as Motorola who saved over $16 billion in costs and increased customer
satisfaction by 15% using Lean 6 Sigma.
• Join the 200,000+ Executives, Consultants & Entrepreneurs who are already
leveraging our Management Consulting Toolkits to improve the performance of
their organization and boost their own career.
• If you have any questions, send us an email at
support@domontconsulting.com and one of our ex-McKinsey, Deloitte & BCG
Management Consultants will get back to you within 2 business days.

Aurelien Domont
Management Consultant
Domont Consulting Managing Director

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Table of contents

1 What is Lean Six Sigma?

2 What are the key benefits of using Lean Six Sigma?

3 Lean Six Sigma Toolkit - Approach and overview

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Table of contents

1 What is Lean Six Sigma?

2 What are the key benefits of using Lean Six Sigma?

3 Lean Six Sigma Toolkit - Approach and overview

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Lean Six Sigma provides a balanced approach to simultaneously reducing
complexity (Lean) and increasing reliability (Six Sigma)

High
Simple + Low reliability Simple + High reliability

Simplicity
(Lean)

Low
Complex + Low reliability Complex + High reliability

Low High

Reliability
(Six Sigma)
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Lean methodology focuses on simplifying processes

Lean is a structured approach

focusing on simplifying
processes by eliminating the
tasks that don’t bring value to
the end customer.

This approach was mostly

derived from the Toyota
Production System (TPS) in the
beginning of the 20th century
and identified as "lean" only in
the 1990s

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The objective of a Lean project is to eliminate 8 types of waste that can be
easily remembered using the word “Downtime“ (1/2)

Defects

Extra-processing Overproduction

Motion DOWNTIME Waiting

Inventory Non-utilized talent

Transportation

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The objective of a Lean project is to eliminate 8 types of waste that can be
easily remembered using the word “Downtime“ (2/2)

Defects Transportation
Defects Making mistakes that cause products to fail Defects Unnecessary movements of products and
customer requirements materials

Overproduction Inventory
Defects Defects Storing parts, pieces, documentation ahead of
Making more than it is immediately required
requirements

Waiting Motion
Defects Waiting for the previous step in the process to Defects
Unnecessary movements by people
complete

Non-utilized Extra-
talent
Defects processing
Defects
Not recognizing and utilizing human talent and Performing any activity that is not necessary
creativity available within the workforce to produce a functioning product or service

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 Real-life example

The objective of a Lean project is to eliminate 8 types of waste that can be

easily remembered using the word “Downtime“ (2/2)

Defects 1. Wrong-site surgeries Transportation

1. Moving patients from room to room
Defects 2. Medication errors Defects 2. Poor workplace layouts, for patient services
3. Dealing with service complaints
3. Moving equipment in and out of procedure room or
4. Illegible, handwritten information
operating room
5. Collection of incorrect patient information

Overproduction Inventory
1. Multiple signature requirements
Defects Defects 1. Overstocked medications on units/floors or in pharmacy
2. Extra copies of forms
2. Physician orders building up to be entered
3. Multiple information systems entries
3. Unnecessary instruments contained in operating kits
4. Printing hard copy of report when digital is sufficient

Waiting Motion
Defects 1. Early admissions for procedures later in the day Defects 1. Leaving patient rooms to get supplies or record
2. Waiting for internal transport between departments 2. Large reach/walk distance to complete a process step

Non-utilized Extra-
talent 1. Not using people’s mental, creative, and physical processing
Defects Defects 1. Asking the patient the same questions multiple times
abilities
2. Unnecessary carbon copying
2. Staff not involved in redesigning processes in their
3. Batch printing patient labels
workplace

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Six Sigma methodology focuses on improving process reliability

Six Sigma is a structured

approach focusing on
improving process
reliability in order to
eliminate the defects in
products and services.

This approach was

developed in 1986 by
Motorola and popularized
by GE.

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The objective of a Six Sigma project is to reduce process variation to such
a degree that the sigma’s of variation will fit within the specification limits

Customer lower specification limit Customer higher specification limit

(LSL) (HSL)

Reduce Variations

Defects Defects

4s 3s 2s 1s 1s 2s 3s 4s

Technically, 6s refers to having a process that will result in fewer than 3.4 defects per one million opportunities (DPMO)

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Lean Six Sigma focuses on simplifying processes and improving process
reliability

Lean Six Sigma Lean Six Sigma

A structured approach A performance

focusing on improving improvement
A structured approach
focusing on simplifying + process reliability in
order to eliminate the
= methodology focusing on
simplifying processes
processes
defects in products and and improving process
services reliability

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Lean Six Sigma key principles

Focus on your
Defining the customer’s perception of value is key to improving the process
customer

Measure process The process performance needs to be measured before and after implementing Lean Six
performance Sigma

Identify value Your value stream is “the processes of creating, producing, and delivering a good or service
stream to the market”1

Source: APICS Dictionary

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Lean 6 Sigma background

1950’s – 70’s 1980’s 1990’s 2000’s

• 1950s: • 1980s: • 1990s: • 2000:

Business W. Edward Deming - Motorola initiates ”Six Lean manufacturing Lean Six Sigma adoption
Plan-Do-Check-Act Sigma Quality” application to non- increases
Improvement • 1960s/70s: - TQM automotive industries
Tools/Methods Toyota Lean Production System - Malcom Baldridge Award begins

• Primarily Automotive and Heavy • Expansion across • Beginning of use in • Automotive

Equipment Automotive and Pharmaceutical and • Consumer Business
Industries Manufacturing Financial Services • Pharmaceutical
• Healthcare
• Financial Services

• Japanese car makers • Motorola • GE • Campbells

• Johnson & Johnson • Coors
• Citigroup • Merrill Lynch
Companies • Allied Signal • JP Morgan
• Cargill
• Caterpillar

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Table of contents

1 What is Lean Six Sigma?

2 What are the key benefits of using Lean Six Sigma?

3 Lean Six Sigma Toolkit - Approach and overview

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Lean Six Sigma addresses both tactical and strategic value drivers linked
directly to shareholder value

Shareholder Value

Revenue Growth Operating Margin Asset Efficiency

• On-time delivery • Reduced supply chain costs • Inventory reduction
• Lead time/Cycle time reduction • Reduced factory operating expenses • Improved labor productivity
• Improved product quality • Reduced SG&A costs • Asset consolidation
• Reduced time to market • Reduced quality costs • Increased factory space
• Reduced IT costs • Greater return on IT investment

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 Real-life example

Lean Six Sigma benefit #1: Lean Six Sigma increases asset efficiency

Before After
implementing Lean Six Sigma implementing Lean Six Sigma

One employee was able to process 2 home loans One employee was able to process 4 home loans
a day a day

= =

Other examples: Implementing Lean Six Sigma can also help decrease your stock and optimize your working space

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 Real-life example

Lean Six Sigma benefit #2: Lean Six Sigma decreases cost

Before After
implementing Lean Six Sigma implementing Lean Six Sigma

Number of broken products and related cost to Number of broken products and related cost to
remanufacture them (per month): remanufacture them (per month):

Broken Cost Broken Cost

products products

8 $80k 1 $10k

Other examples: Implementing Lean Six Sigma can also help decrease your IT, supply Chain and SG&A costs

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 Real-life example

Lean Six Sigma benefit #3: Lean Six Sigma increases revenue

Before After
implementing Lean Six Sigma implementing Lean Six Sigma

The process improvement allowed the sales

A sales representative was focusing 20% of his time
representative to focus only 10% of his time on
on administrative tasks and 80% of his time on
administrative tasks and 90% of his time on selling
selling products
products

Other examples: Implementing Lean Six Sigma can also help to improve product quality, on-time delivery and customer satisfaction

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Benchmark savings: Typical improvement ranges in a manufacturing
environment
0% 25% 50% 75% 100
%
Direct Labor

Support Labor

Raw Material

Defects

Inventory

Supplier Cost

Floor Space

Cycle Time

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Benchmark savings: Typical improvement ranges in a white-collar
environment
0% 25% 50% 75% 100
%
Labor

Supplies

Defects/Poor Quality

Value-add per employee

Cycle Time

Revenue Growth

Information Handoffs

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Success stories of companies using Lean Six Sigma
Motorola estimated that its Six Sigma program had saved the company
over $16 billion in costs and increased customer satisfaction by 15%

Motorola is a global telecommunications company that is often credited with the development of the Six
Sigma methodology. In the 1980s, Motorola was struggling with quality control issues in its manufacturing
processes, which led to high costs and low customer satisfaction. To address these issues, Motorola
implemented the Six Sigma methodology to improve its processes and reduce defects.

As a result of its Six Sigma efforts, Motorola was able to significantly reduce defects in its products, which
led to increased customer satisfaction and reduced costs. In fact, by the early 1990s, Motorola estimated
that its Six Sigma program had saved the company over $16 billion in costs and increased customer
satisfaction by 15%.

Motorola's success with Six Sigma has inspired many other companies to adopt the methodology and has
helped to establish Six Sigma as a leading approach to process improvement. Today, Six Sigma is used by
companies around the world to improve their processes and increase efficiency.

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Success stories of companies using Lean Six Sigma
Toyota is widely regarded as one of the most efficient and effective
automotive manufacturers in the world

Toyota is a Japanese automotive manufacturer that is known for its use of Lean manufacturing principles.
In the early 2000s, Toyota was struggling with quality control issues in its manufacturing processes, which
led to a series of high-profile recalls and damaged the company's reputation.

To address these issues, Toyota implemented a Six Sigma program to improve its processes and reduce
defects. The company also introduced a quality control initiative called "Total Quality Management" (TQM)
that emphasized the importance of continuous improvement and employee involvement.

As a result of its Six Sigma and TQM efforts, Toyota was able to significantly improve its product quality
and reduce defects. In fact, the company's quality control improvements were so successful that they
became known as the "Toyota Way" and have been emulated by many other companies around the world.

Today, Toyota is known for its commitment to quality and continuous improvement, and is widely regarded
as one of the most efficient and effective automotive manufacturers in the world.

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Success stories of companies using Lean Six Sigma
GE has credited Lean Six Sigma with saving the company billions of dollars and
improving customer satisfaction

General Electric (GE) is a multinational conglomerate that has been using Lean Six Sigma since the 1990s
to improve its manufacturing and business processes. GE has credited Lean Six Sigma with saving the
company billions of dollars and improving customer satisfaction.

One of the most famous success stories from GE's Six Sigma program is its efforts to improve the quality
of its aircraft engines. In the 1990s, GE's aircraft engines were experiencing high levels of defects and
failures, which were leading to costly repairs and replacements.

To address these issues, GE implemented the Six Sigma methodology to improve its manufacturing
processes and reduce defects. The company also introduced a quality control initiative called "Design for
Six Sigma" (DFSS) that emphasized the importance of designing products that were less likely to fail.

As a result of its Six Sigma and DFSS efforts, GE was able to significantly improve the quality of its aircraft
engines and reduce the number of defects and failures. In fact, by the early 2000s, GE's aircraft engines
had become so reliable that they were considered the most reliable engines in the world.

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Table of contents

1 What is Lean Six Sigma?

2 What are the key benefits of using Lean Six Sigma?

3 Lean Six Sigma Toolkit - Approach and overview

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Our ex-McKinsey, Deloitte & BCG consultants created a Lean 6 Sigma
Toolkit to help you achieve your organization’s strategic objectives

What’s inside the Toolkit? Who created the Toolkit?

The Toolkit was created by former McKinsey, Deloitte &
BCG management consultants.

Best Practices Frameworks

Advice from
Number of professionals leveraging our Toolkits
tier-1
Management Tools There are 200,000+ Executives, Consultants &
Consultants Entrepreneurs leveraging our Toolkits to improve the
performance of their organization.

Real-life Templates
Examples
Trusted by small and large organizations
Video Training
Step-by-step
Tutorials

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Our Toolkit will help you fulfill multiple objectives

The Lean 6 Sigma Toolkit includes frameworks, tools, templates, tutorials, real-life examples, video training, and
best practices to help you:
• Adopt and implement a Lean 6 Sigma methodology within your organization using the 5 phases of the world-class
DMAIC approach: (I) Define, (II) Measure, (III) Analyze, (IV) Improve, (V) Control
• (I) Define: (1) Define the problem to solve, (2) Define clear and measurable project goals aligned with the corporate and
business strategy, (3) Define the high-level current process and the scope with the SIPOC tool, (4) Establish the timeline and
budget for the project, (5) Conduct a stakeholder analysis, (6) Define the project team, (7) Define the customer requirements
using the VOC technique and Critical-to-Quality tree, (8) Review and select data analytics tools and techniques, (9) Define the
data collection plan
• (II) Measure: (1) Measure the current process performance, (2) Create assumptions for what might be causing problems, (3)
Collect data and ensure data reliability
• (III) Analyze: (1) Analyze the data in detail, (2) Verify your assumptions in terms of what might be causing problems using the
“Five Whys” problem solving tool, the “Fishbone Diagram” tool, and the Pareto Analysis tool, (3) Identify, assess, and prioritize
potential failure modes in a system or process using the FMEA approach
• (IV) Improve: (1) Define ideation constraints, (2) Generate potential solutions using “How might we” questions, ideation
workshop, brainstorming, the Crazy 8S tool and the 5 S framework, (3) Categorize the solutions using mind mapping, (4) Create
a business case & financial model for the most promising solutions, (5) Select the best solution, (6) Test the solution using a
testing sheet and a feedback capture grid, (7) Create a standard operating procedure (SOP), (8) Implement the solution(s), (9)
Assess commitment with the commitment curve tool, (10) Measure improvement
• (V) Control: (1) Monitor and continuously improve the process with the Kaizen approach, (2) Create and implement a control
plan, (3) Share and celebrate your success, (4) Apply new knowledge to other processes in your organization
• Build success stories such as Motorola who saved over $16 billion in costs and increased customer satisfaction by 15% by
applying Lean 6 Sigma
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The Lean 6 Sigma DMAIC methodology is an iterative process which
includes 5 phases

I. Define II. Measure III. Analyze IV. Improve V. Control

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 Each phase includes multiple key activities

I. Define II. Measure III. Analyze IV. Improve V. Control

Define the problem and set up Measure current performance Analyze the data and Develop solutions to address Monitor and continuously
Objective project goals & brainstorm potential identify the root causes of the root causes improve
cause(s) of the problem waste
1. Define the problem to solve 1. Measure the current 1. Analyze the data in detail 1. Define ideation constraints 1. Monitor and continuously
2. Define clear and measurable process performance 2. Verify your assumptions 2. Generate potential solutions improve the process with
project goals aligned with the 2. Create assumptions for in terms of what might be using “How might we” the Kaizen approach
corporate and business what might be causing causing problems using questions, ideation workshop, 2. Create and implement a
strategy problems the “Five Whys” problem brainstorming, the Crazy 8S control plan
3. Define the high-level current 3. Collect data and ensure solving tool, the tool and the 5 S framework 3. Share and celebrate your
process and the scope with data reliability “Fishbone Diagram” tool, 3. Categorize the solutions using success
the SIPOC tool and the Pareto Analysis mind mapping
4. Apply new knowledge to
4. Establish the timeline and tool 4. Create a business case &
other processes in your
budget for the project 3. Identify, assess, and financial model for the most
Activities organization
prioritize potential failure promising solutions
5. Conduct a stakeholder
modes in a system or 5. Select the best solution
analysis
process using the FMEA 6. Test the solution using a
6. Define the project team testing sheet and a feedback
approach
7. Define the customer capture grid
requirements using the VOC 7. Create a standard operating
technique and Critical-to- procedure (SOP)
Quality tree 8. Implement the solution(s)
8. Review and select data 9. Assess commitment with the
analytics tools and commitment curve tool
techniques 10.Measure improvement
9. Define the data collection Domont Consulting 29
Small preview of the Phase I

I. Define II. Measure III. Analyze IV. Improve V. Control

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Small preview of the Phase II

I. Define II. Measure III. Analyze IV. Improve V. Control

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Small preview of the Phase III

I. Define II. Measure III. Analyze IV. Improve V. Control

REF Process / Process Potential Failure Risk Priority Recommended

Potential Failure Mode Severity (S) Occurrence (O) Detection (D) Responsible
# Step Effects Number (RPN) Actions

1 Step 1 Equipment failure Production downtime 1 2 2 4 Schedule maintenance John Doe

2 Step 2 Human error Incorrect assembly 9 2 2 36 Implement training John Doe

3 Step 3 Material defect Product failure 10 1 3 30 Improve supplier quality John Doe

4 0

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Small preview of the Phase IV (1/2)

I. Define II. Measure III. Analyze IV. Improve V. Control

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Small preview of the Phase IV (2/2)

I. Define II. Measure III. Analyze IV. Improve V. Control

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Small preview of the Phase V

I. Define II. Measure III. Analyze IV. Improve V. Control

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The Toolkit includes multiple PowerPoint slides, Excel sheets and Video
training that you can download on your device immediately after purchase

330 editable PowerPoint slides*

21 Excel sheets*

52 minutes of Video training

1. Overview and Approach 5. Improve

2. Define 6. Control
3. Measure
4. Analyze

*Please note that the number of Powerpoint slides and Excel sheets listed is the number of unique slides and sheets. For example, a Powerpoint slide
that has been duplicated to facilitate our clients’ understanding only counts for one slide

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