01 overview of lean six sigma
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Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
Overview to Lean Six Sigma Part 01 of 09
Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
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Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
Enterprise-wide View
History of continuous improvement•The origins of
continuous improvement and its impact on other improvement models.
Value and foundations of six sigma•The value of six
sigma, its philosophy, history, and goals.
Value and foundations of lean•The value of lean, its
philosophy, history, and goals.
Integration of lean and six sigma•The relationship
between lean and six sigma.
Business processes and systems•The relationship among
various business processes (design, production, purchasing, accounting, sales, etc.) and the impact these relationships can have on business systems.
Six sigma and lean applications•How these tools are
applied to processes in all types of enterprises: manufacturing, service, transactional, product and process design, innovation, etc.
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Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
HISTORY OF CONTINUOUS IMPROVEMENT
The origins of continuous improvement and its impact on other improvement models
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Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
History of continuous Improvement
WESTERN MODELS
• W Edwards Deming
• Joseph M Juran• Phil Crosby• Walter Shewhart• Value Engineering• IDEAL Model
EASTERN MODELS
• 7 QC Tools• New 7 Tools• Quality Circles• Kaizen• Poka Yoke• 5 S• TPM• Just-In Time
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Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
W Edwards Deming – The Deming Wheel
Source: http://upload.wikimedia.org/wikipedia/commons/7/7c/PDCA-Cycle.png
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Source: http://www.aacc.org/SiteCollectionDocuments/hall_of_fame/Deming_W_Edwards_200.gif
Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
W Edwards Deming – Deming’s 14 principles
Deming offered fourteen key principles for management for transforming business effectiveness. Thepoints were first presented in his book Out of the Crisis.
1. Create constancy of purpose toward improvement of product and service, with the aim to becomecompetitive and stay in business, and to provide jobs.
2. Adopt the new philosophy. We are in a new economic age. Western management must awaken tothe challenge, must learn their responsibilities, and take on leadership for change.
3. Cease dependence on inspection to achieve quality. Eliminate the need for inspection on a massbasis by building quality into the product in the first place.
4. End the practice of awarding business on the basis of price tag. Instead, minimize total cost. Movetowards a single supplier for any one item, on a long-term relationship of loyalty and trust.
5. Improve constantly and forever the system of production and service, to improve quality andproductivity, and thus constantly decrease cost.
6. Institute training on the job.
7. Institute leadership. The aim of supervision should be to help people and machines and gadgets todo a better job. Supervision of management is in need of overhaul, as well as supervision ofproduction workers.
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Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
W Edwards Deming – Deming’s 14 principles
8. Drive out fear, so that everyone may work effectively for the company.
9. Break down barriers between departments. People in research, design, sales, and production must workas a team, to foresee problems of production and in use that may be encountered with the product orservice.
10. Eliminate slogans, exhortations, and targets for the work force asking for zero defects and new levels ofproductivity. Such exhortations only create adversarial relationships, as the bulk of the causes of lowquality and low productivity belong to the system and thus lie beyond the power of the work force.
11. Eliminate work standards (quotas) on the factory floor. Substitute leadership. Eliminate management byobjective. Eliminate management by numbers, numerical goals. Substitute workmanship.
12. Remove barriers that rob the hourly worker of his right to pride of workmanship. The responsibility ofsupervisors must be changed from sheer numbers to quality. Remove barriers that rob people inmanagement and in engineering of their right to pride of workmanship. This means, interalia, abolishment of the annual or merit rating and of management by objective.
13. Institute a vigorous program of education and self-improvement.
14. Put everyone in the company to work to accomplish the transformation. The transformation is everyone'swork. "Massive training is required to instill the courage to break with tradition. Every activity and everyjob is a part of the process."
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Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
W Edwards Deming – Seven Deadly Diseases
The Seven Deadly Diseases (also known as the "Seven Wastes"):
1. Lack of constancy of purpose
2. Emphasis on short-term profits
3. Evaluation by performance, merit rating, or annual review of performance
4. Mobility of management
5. Running a company on visible figures alone
6. Excessive medical costs
7. Excessive costs of warranty, fueled by lawyers who work for contingency fees
A Lesser Category of Obstacles:
• Neglecting long-range planning
• Relying on technology to solve problems
• Seeking examples to follow rather than developing solutions
• Excuses, such as "Our problems are different”
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Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
Joseph M Juran – The Pareto Principle
• It was in 1941 that Jurandiscovered the work ofVilfredo Pareto
• Juran expanded the Paretoprinciple applying it toquality issues (forexample, 80% of a problemis caused by 20% of thecauses)
• This is also known as "thevital few and the trivialmany". In later years Juranhas preferred "the vital fewand the useful many" tosignal that the remaining80% of the causes should notbe totally ignored
80% of time expended
80% of results
20% of time
20% of results
The Pareto principle of Time vs. Results
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Source: http://img.freebase.com/api/trans/image_thumb/en/joseph_m_juran?pad=1&maxheight=110&mode=fillcropmid&maxwidth=110
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Joseph M Juran – The Management Thoery
• When Juran began his career in the 1920s the principal focus in quality management was on the quality ofthe end, or finished, product
• The tools then used were from the Bell system of acceptance sampling, inspection plans, and controlcharts. The ideas of Frederick Winslow Taylor dominated
• Juran is widely credited for adding the human dimension to quality management. He pushed for theeducation and training of managers
• For Juran, human relations problems were the ones to isolate. Resistance to change—or, in histerms, cultural resistance—was the root cause of quality issues. Juran credits Margaret Mead's bookCultural Patterns and Technical Change for illuminating the core problem in reforming business quality.He wrote Managerial Breakthrough, which was published in 1964, outlining the issue
• Juran's vision of quality management extended well outside the walls of the factory to encompass non-manufacturing processes, especially those that might be thought of as service related. For example, in aninterview published in 1997 he observed:
“The key issues facing managers in sales are no different than those faced by managers in otherdisciplines. Sales managers say they face problems such as "It takes us too long or we need to reducethe error rate." They want to know, "How do customers perceive us?" These issues are no differentthan those facing managers trying to improve in other fields. The systematic approaches toimprovement are identical…There should be no reason our familiar principles of quality and process engineering would not workin the sales process…”
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Joseph M Juran – The Quality Trilogy
0 Time
Cost
of p
oor q
ualit
y(a
s a
% o
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dget
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Original zone of quality control
New zone of quality control
QUALITY PLANNING QUALITY CONTROL (DURING OPERATIONS)
Sporadic zone
20 -
40 -
QUALITY IMPROVEMENT
Chronic waste (an opportunity
for improvement)
Lessons learnt
Savi
ngs
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Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
Philip Crosby
• Philip Crosby started the management consulting company Philip CrosbyAssociation, Inc
• This consulting group provided educational courses in qualitymanagement both at their headquarters in Winter Park, Florida, and ateight foreign locations. In 1979 Crosby published his first business book,Quality Is Free. This book became popular at the time because of the crisisin North American quality
• During the late 1970s and into the 1980s North American manufacturerswere losing market share to Japanese products largely due to thesuperiority of quality of the Japanese products.
• Crosby's response to the quality crisis was the principle of "doing it rightthe first time" (DIRFT). He would also include four major principles:
– the definition of quality is conformance to requirements– the system of quality is prevention– the performance standard is zero defects– the measurement of quality is the price of nonconformance
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Source: http://www.wppl.org/wphistory/philipcrosby/PhilipCrosby.jpg
Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
Philip Crosby’s Quality Improvement Program
1. Management is Committed to Quality2. Create Quality Improvement Teams3. Measure processes to determine
current and potential quality issues4. Calculate Cost of (poor) Quality 5. Raise Quality Awareness of all
Employees6. Take Actions to Correct Quality
Issues7. Monitor progress of quality
improvement – establish a zero defects committee
8. Train supervisors in quality improvement
9. Hold zero defects days10. Encourage employees to create their
own quality improvement goals11. Encourage employee communication
with management about obstacles to quality (Error-Cause Removal)
12. Recognise participants’ effort 13. Create quality councils 14. Do it all over again – quality
improvement does not end
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Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
Philip Crosby’s Stages
Uncertainty
• COPQ : 20%• Blame QD
Awakening
• COPQ : 18%• QM begins
Enlightenment
• COPQ : 12%• CA
Wisdom
• COPQ : 8%• DP is routine
Certainty
• COPQ : 2.5%• QI is normal
COPQ - Cost of Poor Quality
QD – Quality Deployment
QM –Quality Management
CA – Cost Acceptance
DP – Defect Prevention
QI – Quality Improvement
Crosby's name is best known in relation to concepts of “Do it Right, First time” and“Zero Defect”.
Quality is defined as conformance to requirements,
not as “goodness” or “elegance”.
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Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
Walter Shewhart
• Statistical Process Control (SPC) is aneffective method of monitoring a processthrough the use of control charts.
• Control charts enable the use of objectivecriteria for distinguishing backgroundvariation from events of significance basedon statistical techniques. Much of its powerlies in the ability to monitor both processcenter and its variation about that center.
• By collecting data from samples at variouspoints within the process, variations in theprocess that may affect the quality of the endproduct or service can be detected andcorrected, thus reducing waste as well as thelikelihood that problems will be passed on tothe customer.
• Because of its emphasis on early detectionand prevention of problems, SPC has adistinct advantage over qualitymethods, such as inspection, that applyresources to detecting and correctingproblems in the end product or service.
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Source: http://www.firstmetre.co.uk/image.php?w=250&h=334&f=/UserFiles/Image/October+Images/Shewhart-c1926.jpg
Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
Walter Shewhart – Father of Statistical Process Control
Statistical Process Control is the application of statistical techniques in the Control of processes
Define Problem
Define Process
List Possible Reasons
Collect Data
Analyze Data
Implement Solution
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Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
Value EngineeringValue Engineering objective:
To develop the best solution to meet the project objective
Step 1: Information gatheringDefine project objective
Develop terms of referenceIdentify assumptions and facts
Gather information (physical parameters, cost, schedule)
Step 2:Function analysisAnalyze functions required to deliver project objectives
Describe each identified functionsClassify functions: Basic functions
Step 3:Value analysisCreatively identify options and alternatives to perform functions
Research optionsIdentify cost and cost benefits
Identify risks (barriers and uncertainties)
Step 4:Option evaluationEvaluate idea roots developed in Step 3 and identify those for further analysis
Compare solutions and screen out unfeasible / least valuable alternativesIdentify solutions for further analysis (iterate)
Step 5:JudgmentUse judgment to identify the best value solution
Alternative solutions to perform functions
Idea roots identified for further analysis
Screen out unsuitable options
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Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
IDEAL Model
Build sponsorship
Set Content
Stimulus for change
Analyze and validate
Propose future actions
Charter infrastructure
Characterize desired & current
state
Develop recommendations
Set priorities
Develop approach
Plan actions
Create solutions
Pilot / test solution
Refine solution
Implement solution
Initiation
Diagnosis
Establishing
Acting
Learning
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Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
Seven QC toolsCheck sheets
Pareto diagram
Fish bone diagram
Scatter diagramsHistograms
Graphs
Process behavior / Control charts
Source: http://farm3.static.flickr.com/2671/4235318918_15e2a8feaf.jpgSource: http://upload.wikimedia.org/wikipedia/commons/c/c7/Histograma_pisuaktom.JPG
Source: http://media.texample.net/tikz/examples/PNG/pie-chart.png
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Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
New Seven QC ToolsAffinity Diagrams
Relationship Diagrams
Tree Diagrams
Process decision program chartMatrix data analysis
Matrix diagrams
Arrow diagrams
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Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
Quality Circle Concept
S.No. Particulars What they mean?
1 Concept The main objective of Quality Circles is “self” and mutualdevelopment, cohesive team work and to be engaged in continuousimprovement activities, thus improving their quality of work life
2 Identification of problem QC Members with the help of Round Robin Method, try to identifytheir own day to day work related problems
3 Problem selection Identified problems are segregated into three categories based ondifficulty of their solution
4 Meetings QCs have periodic meetings to discuss, analyze and find solutions tothe problems on a pre-fixed schedule
5 Various problem solving steps QCs follow a 12 step methodology, starting from identification ofproblems to solution, implementation, follow up and review.
6 Approval of project Project has to be approved by the Steering Committee or theexecutives nominated by the Steering Committee.
7 Gains The aim of QC is to “develop people”. In other words, self and mutualdevelopment through QC activities. Hence, the focus is not on gains interms of money
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Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
Kaizen
• Japanese term that means continuous improvement, taken from words:– ‘kai' which means continuous– 'zen' which means improvement
• Kaizen, or rapid improvement processes, are the building block of all Leanproduction methods. Kaizen philosophy implies that all, incrementalchanges routinely applied and sustained over a long period result insignificant improvements
• The kaizen strategy aims to involve workers from multiple functions andlevels in the organization in working together to address a problem orimprove a particular process
• The team uses analytical techniques, such as Value Stream Mapping, toquickly identify opportunities to eliminate waste in a targeted process.The team works to rapidly implement chosen improvements
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Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
Kaizen – Continuous improvementDo it again
Document reality
Identify waste
Eliminate waste
Reality check
Make changes
Verify changes
Measure results
Standardize
Celebrate
Starthere
For counter measures
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Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
Poka Yoke / Mistake Proofing - Overview
Elimination– Eliminate the possibility of error
Replacement– Substitute a more reliable process
Facilitation– Make work simpler to perform
Detection– Detect the error at the defect source
Mitigation– Minimize the effect
• A technique for eliminating errors• Making it impossible to make mistakes
Good
Better
Best
It is good to do it right the first time; it is even better to make it impossible to do it wrong the first time.
Use the highest level possible for the
application.
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Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
Poka Yoke / Mistake Proofing - Examples
• While closing a word document, one is askedwhether to save the file or not
• Spelling check option in a word document• In three pin plugs / socket, the earth pin / socket
is larger in length and diameter so that onedoesn’t mistakenly insert it otherwise
• The window in a envelop ensures that rightcontent reaches the right person
• The fuse box in a house is meant to prevent fire inelectrical systems
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Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
5S – A Framework to create and maintain your workplace
•Means SORT -Organization•Distinguish between
what is and is not needed
SEIRI
•Means SET IN ORDER - Orderliness•A place for everything
and everything in its place
SEITON •Means SHINE -Cleanliness•Cleaning and looking
for ways to keep it clean
SEISO
•Means STANDARDIZE – Adherence•Clearly define tasks
and procedures
SEIKETSU •Means SUSTAIN – Self discipline•Stick to the
rules, scrupulously
SHITSUKE
Implementing the 5S is often the first step in Lean Transformation
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TPM - Total Productive Maintenance
• TPM (Total Productive Maintenance) seeks to engage all levels andfunctions in an organization in maximizing the overall effectiveness of theprocess
• TPM's goal is the total elimination of all losses• TPM focuses on preventing:
– Breakdowns (preventive maintenance)– “Mistake-proofing" the equipment (or poka-yoke) to prevent
breakdowns– Make maintenance easier (corrective maintenance)– Designing and installing equipment that needs little or no
maintenance (maintenance prevention)– Quickly repairing equipment after breakdowns occur (breakdown
maintenance).
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Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
TPM - Total Productive Maintenance
8 Pillars of TPM
Auto
nom
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aint
enan
ce
Focu
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emen
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Plan
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Mai
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Qual
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aint
enan
ce
Initi
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low
Con
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Educ
atio
n &
Tra
inin
g
Safe
ty, H
ealth
&En
viro
nmen
t
TPM
in o
ffice
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Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
Just in Time (JIT)
• Just In Time (JIT) is a manufacturing philosophy which leads to"Producing the necessary units, in the necessary quantities at thenecessary time with the required quality”
• It is an approach to achieving excellence in the reduction or totalelimination of waste (Non-Value Added Activities)
• Examples of waste according to JIT:– Overproduction– Unneeded Inventory– Defective Products– Transport and Waiting Time
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Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
VALUE AND FOUNDATION OF SIX SIGMAThe value of six sigma, its philosophy, history, and goals
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Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
Evolution of Quality
SPC
KAIZEN
TQM
TPM
PROBLEM SOLVING
DMAIC
DFSS
DOE
BUSINESS PROCESS MANAGEMENT
LEAN ENTERPRISE
TEAM BUILDING
QFD
FMEA
STRATEGY
ECONOMETRICS
BUSINESS RESULTS
DF(X)
RCM
5S
ZD
CQI
PDCA7 QCT
VE
CONCURRENT ENGINEERING
ROBUST PROCESS DESIGN
BUSINESS INTELLIGENCE
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INDUSTRY SNIPPETS
'The savings as a percentage of revenue for a company can vary from 1.2% to 4.5%.’
'GE produces annual benefits of over $2.5 billion across the organization from Six Sigma.’
'Lean Six Sigma techniques implemented throughout the Army continue to prove successful, and leaders anticipate reaching a $2 billion-savings mark this year.’
'During the past 10 years Six Sigma has become one of the most widely practiced process improvement methodologies in both service and manufacturing industries.’
'No matter which level of Six Sigma training the respondents completed, their average salaries are higher than the respondents who didn't complete any Six Sigma training.’
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Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
What is Lean Six Sigma?
A Set of Proven Tools and Techniques used to achieve Business growth and goals
A set of proven tools and technique used to solve business problems
A framework that buildsa Customer centric approachwith a focus on delivering business results
A mechanics to developleadership talent within
an organization
ControlDefine
Measure
Analyze
Improve
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Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
Lean Six Sigma – Why is it so successful?
Leaders
Managers
Associates
Highest Skill
Medium Skill
Lower Skill
Larger % of employees in need of skills to deliver customer value and Business Value
Lean and Six Sigma (6σ)
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Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
Historical Perspective
1979: Motorola Starts Six
Sigma Initiative
1986: Motorola
Saves ~$16 Billion
1995: Jack Welch
Initiates Six Sigma in GE
1998: Allied Signal Saves
~$1.2 Billion
2000: GE Saves ~$2
Billion Annually
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Mean vs. Variation
Archer A Archer B
Mean of Archer A is zero and that of Archer B is significantly higher. But which one would you choose?One that had inconsistent performance (Archer A, high variation) or one that was very consistent (Archer B, very low variation)
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Statistical Perspective
Mean = 2017 20 23
= 0.5(Upper Specification)
σ
σ
σ
(Lower Specification)
A defect is any value that falls outside Customer Specifications
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Quantitative Perspective99.99966% Right (6 Sigma)
No electricity for 1 hour every 34 years
1.7 incorrect operations per week
68 wrong prescriptions per year
99% Right (3.8 Sigma)
No electricity for 7 hours per month
5,000 incorrect operations per week
20,000 wrong prescriptions per year
σ Defects per Million Opportunities
1 697,672.15
2 308,770.21
3 66,810.63
4 6,209.70
5 232.67
6 3.40
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Quantitative Perspective
Two Sigma308,770 PPM
Three Sigma 66,810 PPM
Four Sigma 6,209 PPM
Five Sigma 233 PPM
World Class, Six Sigma 3.4 PPM
Airline fatality rate 0.52 PPM
Motorola 1990
Hospital fatality rate due to mistakesRestaurant billsDoctor prescriptionsPayroll processingAirline baggage handling
1:100
1:1,000,000
Sigma (σ)
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Customers Perspective
Six Sigma Starts and Ends with Customers
CUSTOMERS
What do the customers expect
out of the process?
What is my customers view of the process?
What is my customers
definition of a defect?
How do my customers
measure the process?
Are my customers
referring and buying again?
Is my customer satisfaction increasing?
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Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
Operational Perspective
Measure
ControlDefine
Analyze
Improve
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Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
VALUE AND FOUNDATION OF LEANThe value of lean, its philosophy, history, and goals
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Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
LEAN History
Some Key Lean Concepts developed at Toyota
• Single Piece Flow
• Pull Production
• TAKT Time Production
• Automation
• Built-In Quality
• Stopping at Abnormalities
• Level Loading
• Sequencing
• Stability
Jidok
a
Just
-in-T
ime
Heijunka
ToyotaProduction System
PeoplePeoplePeople
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Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
LEAN Thinking
A principle driven, tool based philosophy that focuses on eliminating waste so that all activities/steps add value from the customers perspective.
Imagine Office Processes with:
Lean Thinking is all about continuous waste elimination !
• Higher Customer Satisfaction• Shorter Lead Time• Higher Flexibility• Higher Quality• Lower Costs• Higher Employee Satisfaction
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Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
LEAN Explained
• A strategy, philosophy, process and leadership approach for operating in a superior way. Results include:
– Reduced cycle times (product development and production)
– Increased quality
– Reduced costs and inventory
– Increased capacity potential
– Improved customer service
– High levels of worker involvement, ownership and commitment
– Improved financial returns
Lean concepts apply across all processes and industries
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Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
LEAN Explained
Earlier: Price = Cost + Profit Now: Profit = Price - Cost
0
0.5
1
1.5
Cost of production
0
0.5
1
1.5
Price to sell
Price to sell
Cost of productionSome profit
Bigger profitSome profit Bigger profit
Increase Profit by Price increase Increase Profit by cost reduction
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Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
Where are We going?
Issues• Inventory• Waiting• Defects• …
No flow in the value stream.
Processes full of waste
Old situation
Tool• Value Stream
Mapping, other lean tools, etc.
Results• Reduction of waste• Learned to ‘see the flow’• Couple of improvements
Remaining Issues• No real continuous flow• Still significant amount of
waste.
Basic tools
Tool• Creating Continuous Flow• Pull production
Challenge• More waste reduction
• Real continuous flow• Flexible workforce• Less variance• Less waste
Advanced tools
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Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
Lean Toolkit
• Value Stream Mapping• Standardized Work• Intro to Continuous Flow• Intro to Pull Production• 5S
• MUDA• Mistake proofing• Intro to Value Stream Mapping• Visual Management
Tool
Sop
hist
icat
ion
Time / Cultural Maturity
Applying the right tools at the right stage
Expose the Waste
Reduce Variability, Control the Process
Level 1 Level 2
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Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
Lean Tools Overview
Appropriate Tools and Techniques are to be used depending on the need
A number of Lean Tools and Techniques are available
Tool
s and
Tec
hniq
ues
Actio
n
Bring Organization & Cleanliness to work area
5S Framework
Understand Value Value Stream Mapping
Institute continuous improvement philosophy Kaizen Events
Implement pull-based flow Kanban, Just-in Time
Reconfigure work areas U-Shaped Cells
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Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
INTEGRATION OF LEAN AND SIX SIGMAThe relationship between LEAN and Six Sigma
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Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
LEAN vs. Six Sigma
Apply Any Tool from your Quality Tool Box
• Communicative
• Centered on Stable, Repeatable Process
• Automation
• Many Tools for Driving Change
• Mixed Model Plan, Kan Ban, Visual Management
• Observation and Intuition Based Analysis . . . PQ, PR, TAKT Time
• Standard Work & Target Sheets . . . Assumes Data is Good
• Value Stream Mapping . . . Boundary less & Multi-Generational
• Few Tools or Direction
• Few Tools to Create Change in Critical X’s
• Data Driven Analysis
• Confirms Data Quality
• VOC is PowerfulSix Sigma
Lean
Define Measure Analyze Improve ControlLean Six Sigma
MethodologyStrengths
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Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
When do I use LEAN?
Lean For Quick Fixes….Six Sigma For Complex Processes !!
Six Sigma Project Hybrid Action
Workout
Average ~ 4 Months Average ~ 4 Months
TimeEf
fort
Time
Effo
rt
Time
Effo
rt
Average ~ 1½ Months
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Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
LEAN vs. Six SigmaLe
an: S
tren
gthe
ns jo
urne
y to
Exc
elle
nce
X X
Lean Six SigmaIdentifies problems in the flow
Improves the capability of steps that do add value
Helps identify steps thatdo not add value andprovides tools toeliminate them
LeanImproving the capability can eliminate additional steps
Six Sigma/Lean
•Energizing•Empowering•Team work, •Boundary less / Open mindset•Passion for improvement•Intuition / Action•Customer focus
Lean success factors / Impact
Six Sigma Values
LEAN Simple / Wing to Wing Spans breadth Spans
depthSix SigmaComplex and
focused
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Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
LEAN or Six Sigma – When to use?
Just Do it Lean
Ask an Expert Six Sigma
55
Preference I
Preference II
Preference III
Preference IV
Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
BUSINESS PROCESSES AND SYSTEMS
The relationship among various business processes (design, production, purchasing, accounting, sales, etc.) and the impact these relationships can have on business systems
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Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
KINDUZ Business Excellence
57
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Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
Baldrige Excellence Framework
Source: http://farm3.static.flickr.com/2082/2531423852_895e11268d.jpg
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Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
European Foundation for Quality – EFQM Excellence model
Lead
ersh
ip
Proc
esse
s
Key
Perf
orm
ance
Res
ultsPeople
Policy & Strategy
Partnerships & resources
People results
Customer results
Society results
Enablers Results
Innovation and Learning
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Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
SIX SIGMA AND LEAN APPLICATIONS
How these tools are applied to processes in all types of enterprises: manufacturing, service, transactional, product and process design, innovation, etc.
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Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
Value Stream Mapping – A Petrol Station / Gas Station Example
Customers Enters Petrol Station
Customer Finds Pump with
smallest Cue
Customer Waits in a Cue
Customer Makes Payment
Customer Stops Vehicle
Helpers / Customer Fills
TankCustomer Starts
Vehicle
Customer Carefully Exits, avoiding other Standing
Traffic
Customer Exits
Goal is to eliminate or make non-value added activities more efficient
Non value added service
Value added service
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Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
Value Stream Mapping – Original layout
62
Lay down area #1
Lay down area #2
Lay down area #3
Lay down area #4
Lay down area #5
Lay down area #6
Lay down area #7
Existing Dock
Stock room
Stor
age
Receiving
Receiving inspection
Material Lay down areas:• Deliver to receiving dock• Queue for receipt• Waiting to move to inspection• Delivered to inspection• Queue for inspection• Waiting to move to stock room• Queue for put away
Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
Value Stream mapping – proposed layout
63
Receiving
New InspectionStock room
Roller belt
Bulk incoming material (hold for inspection)
Existing Dock
New Deck
Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
Case Study: Reduction in the cycle time of issuance of corporate loans
About the Organization Serviced:• The Company Serviced is one of the Largest Banking
Organizations in the Kingdom of Saudi Arabia with annual turnover of 3 Billion $
• The Bank is catering to the needs of Individuals, Corporate’sand Trade Finance activities across the country with extensive branch network
Results Delivered:• Our Consultant helped reduce the average time consumed
from 73 days to 27days considering all regions and types of credit applications processed involving 14 Departments in 6 months
• Helped streamline various sub processes to be aligned with the core process
• Held extensive training/ mentoring for all the team members to achieve the desired results
Objective of the Initiative / Business Case:• The process of issuing/ rejecting Corporate Loan application
process was consuming an average of 73 days considering all the regions and types of credit applications which was leading to customer dissatisfaction and loss of revenue
Issue: Getting buy-in for validating data from all the managers was a big challenge as it would directly impact their role & reputation of that particular department
Resolution: The key was to get the Buy – in from the Senior most manager and ask him to communicate to the whole team about the importance and gravity of issue. This involved extensive people management and Perception Management
Issue: Getting the required data from various systems being used and generating reports on a weekly basis and validating the reports of each department with the respective Manger
Resolution: This was achieved with couple of software analysts collating the data with the Black belt, then the reports were circulated to the respective managers for them to audit and get their acceptance after which they were circulated to the EVP
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Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
Reduction in the Cycle time of Account Opening process
About the Organization Serviced:• The Company Serviced is one of the Largest Banking
Organizations in the Kingdom of Saudi Arabia with annual turnover of 3 Billion $
• The Bank is catering to the needs of Individuals, Corporate’sand Trade Finance activities across the country with extensive branch network
Results Delivered:• Our Consultant helped reduce the average time consumed
from 7 days to 1 day considering applications from all regions
• Helped optimize various back office processes to be aligned with the core process
• Held extensive training/ mentoring for all the team members to achieve the desired results
Objective of the Initiative / Business Case:• The process of opening an account was consuming an
average of 7 days for the customer signature to be uploaded into the master database only after which customer will be able to use all the services. This was leading to customer dissatisfaction
Issue: Getting buy-in for changing the systems and work scheduling from batch processing to lean processing to optimize load balancing across the back office
Resolution: The issue was solved by conducting a pilot with the authorization of the concerned manager and validating the results after which Lean cells were created as an intermediate step to reduce the cycle time until new systems are stabilized
Issue: Making a business case to change the systems in sync with the information architecture of the bank which would result in investment s and results in significant productivity improvement
Resolution: The process was taken up with the IT team and a strong
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Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
ENTERPRISE LEADERSHIP RESPONSIBILITIES
The responsibilities of executive leaders and how they affect the deployment of six sigma in terms of providing resources, managing change, communicating ideas, etc.
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Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
Leadership
Enterprise leadership responsibilities•The responsibilities of
executive leaders and how they affect the deployment of six sigma in terms of providing resources, managing change, communicating ideas, etc.
Organizational roadblocks•The impact an organization’s
culture and inherent structure can have on the success of six sigma, and how deployment failure can result from the lack of resources, management support, etc.; identify and apply various techniques to overcome these barriers.
Change management•Use of various techniques for
facilitating and managing organizational change.
Six sigma projects and kaizen events•How projects and kaizen
events are selected, when to use six sigma instead of other problem-solving approaches, and the importance of aligning their objectives with organizational goals.
Six sigma roles and responsibilities•Describe the roles and
responsibilities of six sigma participants: black belt, master black belt, green belt, champion, process owners, and project sponsors.
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Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
Candidate Selection• Drive
• Willing to APPLY what was covered in class
• Drive the solution
• Is able to have a focused schedule and keepproject on time
• Resolves barriers or gets help resolvingbarriers quickly
• Does not let ‘artificial’ organizationalboundaries get in the way
• Mindset
• Open and flexible mindset
• For both class and project work wants tostay focused on the process and not onblaming people! “Blame the process notthe people”
• Communication• High team involvement, collaborative
• Able to communicate progress frequently
• Able to lead a group effort (flip charts & post-its)
• Mentoring time taken seriously
• Readiness• Open to constructive criticism• Able to ask the fundamental or tough
questions• Candidate prepared for class and
completes tools per schedule• Basic MS Office Computer Skills• Basic statistics knowledge
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Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
LEAN Six Sigma drive benefits
• Financial• Companies embracing Lean
Six Sigma report payback (inclusive of all costs) within 12 months
• Ultimate ROI (Return on Investment) in range of 25-50 months or over 2-4 years
• Cultural:• Deliberate and proven-
approach to work• Returns dependent on:
• Selecting and engaging the right people
• Providing the right Resources
• Executing the right projects
• Fully engaging company leadership
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Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
Responsibilities of Leadership
• Schedule training • Select projects and experts • Determine certification requirements and certify experts • Provide Resources• Develop an expert network to enhance communication • Review and improve the Six Sigma process• Articulate a vision, and spark others to execute it• Don’t manage every excruciating detail• Involve everyone and welcome great ideas from everywhere
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Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
Two Dimensions of Employee Satisfaction
Hygiene factors(Dissatisfaction)
• Company policies• Supervision• Salaries• Interpersonal relations• Working conditions
Motivators (Satisfaction)
• Work itself• Achievement• Recognition• Responsibility• Advancement
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Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
ORGANIZATIONAL ROADBLOCKS
The impact an organization’s culture and inherent structure can have on the success of six sigma, and how deployment failure can result from the lack of resources, management support, etc.; identify and apply various techniques to overcome these barriers
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Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
Six Sigma failure factors
• Lack of visible senior leader sponsorship• Lack of alignment to a clear organization strategy• Lack of performance tracking and accountability• Failure to link projects to bottom-line impact• Insufficient or ineffective allocation of human resources• Over-emphasis on rigid approach and technical (statistical) tools
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Why does implementation of LEAN and Six Sigma fail?
Lack ofFocus
Projects not Business Related
Improper Focus
Under Investment
Lack of Mentors
Associate Competence & Attrition
Why they Fail?
Appl
icab
le to
bot
h In
divi
dual
s and
Org
aniz
atio
n
Indi
cativ
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y
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Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
Six Sigma Success Factors
• Must be driven by Senior Management (Top Management)– Executive Training required up front
• Project Selection is key– Focus on high priority projects with tangible benefits– Focus within each project
• People selection is key– Choose high potential staff from multiple disciplines– Ensure mix of quantitative versus qualitative skills in trainees
• Resource commitment required up front for effective roll-out– Infrastructure– Champions/MBBs/BBs/GBs/YBs/Team Members
• SS methods and tools beneficial and can be applied to strategic business level (Level One/Top Management), operational process level (Level Two/Process Owners and Project Sponsors), and project level (Level Three/Black Belts, Green Belts, Yellow Belts and Team Leaders)
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Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
A Six Sigma organization
•Continuous Improvement Processes•Self-regulatory Processes•Delivery, Reporting Feedback
•Shared Values•Alignment•Accountability and
Responsibility•Six Sigma Organizational
Structure
•Six Sigma Process Capability•Six Sigma Product Capability•Knowledge and Skills•Best-practice know how•Resources•Measurement & Monitoring•Information Systems
•Mission and Shared Vision•Needs Identification•Policy•Objectives•Six Sigma Management
System
Purpose Capability
LearningCommitment
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Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
Six Sigma organizational structure
Yellow belts
Yellow belts
Yellow belts
Yellow belts
Yellow belts
Yellow belts
Six Sigma project team members
Green belts Green beltsGreen beltsGreen belts
Black belts Black beltsBlack belts
Six Sigma Management
Six Sigma MBBs
Six Sigma Champions
Each level drives the team to Breakthrough Six Sigma Project performance
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CHANGE MANAGEMENTUse of various techniques for facilitating and managing organizational change
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Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
Change
• “It is not the strongest that survive, nor the fittest, but those most able to adapt to change.”
– Charles Darwin, The Origin of species• “Planned change is not the cumulative development of a comprehensive
strategy. Rather it is one damned thing after another.”– Michael Fullan
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Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
Failure of Change initiatives
• Two thirds of TQM projects grind to a halt because of lack of results• Seventy percent of re-engineering efforts fail• More than 50% of corporate transformation efforts fail
Why do most change initiatives fail?• “People do not resist change, people resist being changed.” -
Beckhard• “Nothing changes without personal transformation.” - Demin• “Ideas acquired with ease are discarded with ease.” - Pascal
Chan
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a jo
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y, no
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ords
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Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
Complex Change Lessons
• Lesson # 1– Be inspired by moral purpose, but not naïve– Top down change doesn’t work, but we need the force of top
down mandates– The more complex the change the less you can force it
• Lesson # 2– Gain support for program and innovation– Balance needs of individuals and organization– Provide direction and allow for individual freedom
Moral purpose is complex and problematic
Theories of improvement and theories of change need each other
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Complex Change Lessons
• Lesson # 3– Problems are inevitable, but the good news is that you can’t learn or be
successful without them– Smoothness in the early stages of a change effort is a sure sign that
superficial or trivial change is being substituted for substantial change attempts
– Long lived companies were tolerant of activities on the margin• Lesson # 4
• Really chaotic systems have– no direction– random communication– limited purposeful experimentation
• Edge of chaos has– structure and openness
Conflict and diversity are our friends
Understand the meaning of operating on the edge of chaos
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Complex Change Lessons
• Lesson # 5– Anxiety is necessary, and can be valuable– A tight knit shared culture is not a desired end point
• Lesson # 6– With anxiety firmly contained by bureaucracy, the level of stress
drops but the ability to solve complex problems diminishes– Need to provide a “holding environment”
Emotional intelligence is anxiety provoking and anxiety containing
Collaborative culture is anxiety provoking and anxiety containing
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Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
Complex Change Lessons
• Lesson # 7– Easy to experience
overload, fragmentation, incoherence– Neither top down nor bottom up strategies can achieve
coherence
• Lesson # 8– There is no silver bullet of change– You will not know exactly how to apply a new program– Shortcuts lead to superficiality and dependency
Connectedness and knowledge creation are critical
There is no single solution: craft your own theories and actions by being a critical consumer
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Difficulties of Transferability
• Products of other people’s change efforts hide subtleties of change
• Successful application is both the program and understanding the context the application took place in
• Change depends on building local capability
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Black Belts as change agent
• As a Black Belt, what are you going to do on Monday morning
– To help promote change– To not be a road block– To breakdown resistance and road blocks– To promote the company’s initiative and team success
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Accelerating Change
Quality
Acceleration
Excellence
Technical attack
Team / Organization / Cultural attack
Business results
Acceleration implies• Change acceleration process• i.e. Change management for LEAN Six Sigma
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Change Acceleration Process : CAP
• What CAP is:– A systematic process to manage change– A set of tools and checklists used to analyze the elements of change– An active learning process– A team-based process
• What CAP does:– Ensures that all aspects of change management are considered– Encourages discipline and rigor throughout the process– Accelerates reaction to change initiative– Creates a network of change agents
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Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
CAP-o-Gram
Leading change
Changing systems and structures
Current state Transition state Improved state
Creating a shared need
Shaping a vision
Mobilizing Commitment
Monitoring progress
Making change last
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Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
CAP-o-Gram• Leading change:
– Having a champion who sponsors the change
• Creating a shared need– The reason to change, whether driven by threat or opportunity, is instilled within the organization
and widely shared through data, demonstration, demand or diagnosis. The need for change must exceed its resistance
• Shaping a vision– The desired outcome of change is clear, legitimate, widely understood and shared
• Mobilizing commitment– There is a strong commitment from key constituents to invest in the change, make it work and
demand and receive management attention• Making change last:
– Once change is started, it endures, flourishes and learning’s are transferred throughout the organization
• Monitoring progress:– Progress is real; benchmarks set and realized; indicators established to guarantee accountability
• Changing systems and structures– Making sure that the management practices are used to complement and reinforce change
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Creating a shared need
1 2
3 4
Short term
Long term
Opportunities Threats The questions you need to ask are:
• Which combination does your business usually use?
• Which combination fits your project?
• Which combination is the best practice in successful organization
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Project & Team Startup: GRPI Project Resource Roles
92
• List, on the left-hand side of the page, all the individuals or groups who are theKey Stakeholders whose commitment is essential for the project success.
• Use the following Code to define their potential role in the project:
• A : Approval of team decisions outside their charterauthorities, i.e., sponsor, business leader.
• R : Resource to the team, one whose expertise, skills, “clout” may beneeded on an ad hoc basis.
• M : Member of team, with the authorities and boundaries of thecharter.
• I : Interested party, one who will need to be kept informed ondirection, findings, if later support is to be forthcoming.
Stakeholder Identification and Involvement (Building an ARMI)
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Project & Team Startup: Example
93
STAKEHOLDERS
KEY PROJECT PHASES
DEFINE MEASURE ANALYZE IMPROVE CONTROL
Person A A A R R R
Person B I I M M R
Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
Project Definition Tools
• Draw a large square "picture frame" on a flip chart (or use tape on a wall) and use this metaphor to help the team identify what falls inside the picture of their project and what falls out.
• This may be in terms of type and extent of end results, people impacted, time frame, product lines, sites, etc.
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In the Frame / Out of the Frame Flip Charts
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Change Acceleration Process: GRPI Model of Team Work
95
G• GOALS• Are the mission and goals of the team clear and accepted by all members?• Are they in tune with the team's environment?
R• ROLES AND RESPONSIBILITIES• Are the roles and responsibilities clearly described and understood?• Do the defined roles support the team goals fully?• Do the team members have the right competence and resources to fulfill their responsibilities?
P
• PROCESS AND PROCEDURES• Are there processes and procedures operating in the group (such as problem solving methods, communication procedures, decision making processes, resource
allocations) that are: • understood and acceptable?• supportive to the group goals and roles?
I• INTERPERSONNEL RELATIONSHIPS• Are the relationships among the team members healthy and support of good team work?• Is there a healthy level of trust, openness and acceptance in the group?
A model of successful team work elementsDESCRIPTION :
1. When initiating a team and planning the first steps2. When the team isn't working well and you're not sure what's wrong.
USES :
PROCESS :
REVIEW : 1. Review the GRPI model and identify the most important area to improve for greater team effectiveness. Often it is most productive to take the model in order: effective goals first, then roles, then process and then interpersonal relationships.
2. Review the GRPI model periodically to monitor team performance.
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Stakeholder Analysis
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Names Strongly Against
Moderately Against Neutral Moderately
SupportiveStrongly
SupportivePerson W ×Person Y ×
Steps: 1. Plot where individuals currently are with regard to desired change ( = current)
2. Plot where individuals need to be (× = desired). In order to successfully accomplish desired change identify gaps between current and desired
3. Indicate how individuals are linked to each other, draw lines to indicate an influence link using an arrow (Ù) to indicate who influences whom.
4. Plan action steps for closing gaps.
Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
Making Change Last – CAP O GRAM
97
0
25
50
75
100
LeadingChange
Creatinga SharedNeed
Shapinga Vision
MobilizingCommitment
MakingChangeLast
MonitoringProgress
ChangingSystems &Structures
Overview to Lean Six Sigma | LASSIB | http://www.lassib.org/Version: 1.0Release date: 8th Feb, 2011
SIX SIGMA PROJECTS AND KAIZEN EVENTS
How projects and kaizen events are selected, when to use six sigma instead of other problem-solving approaches, and the importance of aligning their objectives with organizational goals
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Kaizen vs. Lean vs. Six Sigma
•Quick Strike•1-6 days•Process mapping•Cause & effect•Basic “Blocking and tackling” tools
•Simple tactical focus•Obvious quick fixes•Containment•Plug holes in dikes
•One piece flow•Cells•Visual control•Pull systems•Kanban•Setup production•TPM
•Waste, non-value added•Speed, cycle time•Standardization•Inventory performance•Logistics cost reduction•Variance reduction
•DMAIC tools•Statistical process•Value stream mapping•PFMEA•Cp and Cpk•Gage R & R•ANOVA, Hypothesis test, DOE, Optimization
•Complex problems•Variation reduction•Process capability•Defect prevention•Stability, predictability•Design excellence
Leadership, creativity, innovation
Teaming and employee involvement
Knowledge of tools
Focus on improvement
Closed loop performance
Kaizen LEAN Six Sigma
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SIX SIGMA ROLES AND RESPONSIBILITIES
Describe the roles and responsibilities of six sigma participants: black belt, master black belt, green belt, champion, process owners, and project sponsors
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• Owns vision, direction, integration, results
• Leads change
Executive • Supports Black Belts by participating on project teams
• Apply Breakthrough Strategy to specific projects, lead and direct teams to execute projects
Green Belts
Black Belts
Master Black Belt
Project Champion
Deployment Champion
Senior Champion
All Employees
• Trains and coaches Black Belts, Green Belts and leaders
• Identify and scope projects• Identify, coach and develop
Black Belts
• Develops deployment and Strategy
• Supports cultural change
• Provides day-to-daymanagement and direction
of Six Sigma Program
• Understand vision• Apply concepts to their
job and work area
Roles and responsibilities
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Champion
• Champions are the Senior executives and managers, such as Vice President or Director of Manufacturing or Marketing.
• Champions should be familiar with basic and advanced statistical tools.
• Create the Vision of Six Sigma for the Company.
• Define the path to implement six sigma across the organization
• Carefully select high-impact project.
• Develop a comprehensive training plan for implementing the breakthrough strategy
• Support development of “statistical thinking”
• Ask black belts many questions to ensure that they are properly focused• Hold the ground by implementing black belt recommendations.• Make sure that project opportunities are acted upon by the organizations leadership and the
finance department.• Realize the gain by supporting the six sigma projects through allocation of resources and
removal of road blocks
• Recognize people for their efforts.
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The Champion’s Responsibilities before team is formed
• Select the team• Create the business case for the project• Formulate the preliminary problem statement• Identify the preliminary scope of the project• Identify the preliminary goals of the project• Allocate the resources for the team to complete its work• Identify the team leader (Black Belt Or Green Belt)• Communicate the business case to each team member• Establish the timeline for the project team to complete its work• Establish the milestones along the way for input from the Champion • Distinguish decisions requiring Champion input from independent team
decisions
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The Champion’s Responsibilities during the Project Team’s existence
• Validate and finalize the Charter.• Monitor and approve all project team tollgate work.• Meet regularly with the team leader/facilitator.• Remove barriers or roadblocks to the team’s success.• Maintain momentum of the team and keep them on task.• Deal with resistance among the team.• Communicate progress to upper management.• Continuing education.• Recognize efforts.• Re-evaluate Scope during the project.
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The Champion’s Responsibilities after the project team existence
• Communication of the new process (and results) to the business Quality Council
• Capture lessons learned• Monitor performance of the new process• Recognize, reward, and celebrate both success and effort
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Master Black Belt – The Prime Movers
• Master Black Belt might be a Chief Engineer or head of customer service.• It requires mastery of basic and advanced statistical tools.
Acts as in house experts for disseminating the breakthrough strategy knowledge throughout the organization
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Master Black Belt - Roles
• Partner with the Champions.• Understand the big business picture• Take on leadership of major programs• Develop and deliver training to various levels of the organization.• Assist in the identification of projects• Help train and certify black belts• Coach and support Black Belts in project work.• Participate in project reviews to offer technical expertise• Facilitate sharing of best practices across the corporation.
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Black Belts – Showing the Way
• Black Belt might be an engineer or billing administrator with five years or more of experience.
Black Belts, apply the Six Sigma breakthrough strategy tool and knowledge to specific projects
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Black Belts - Roles• Determine the most effective tools to apply• Get input from knowledgeable operators, first-line supervisors, and team leaders• Report progress to appropriate leadership levels• Acts as Breakthrough Strategy experts and be Breakthrough Strategy enthusiasts• Simulate Champion Thinking• Identify the barriers• Lead and direct teams in project execution• Report progress to appropriate leadership levels• Solicit help from champions from needed• Influence without direct authority• Determine the most effective tools to apply• Prepare a detailed project assessment during the measurement phase.• Teach and coach breakthrough strategy methods and tools• Manage project risk• Ensure that the results are sustained
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Green Belt
• Their current positions are associated with the problem that needs to be solved.
• Familiarity with basic statistical tools is required.
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Green Belt – Roles
• Function as Green Belts on a part-time basis, while performing theirregular duties.
• Participate on Black Belt project teams in the context of their existingresponsibilities.
• Learn the Six Sigma methodology as it applies to a particular project
• Continue to learn and practice the six sigma methods and tools afterproject completion
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Contact
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EMAILcoordinator@lassib.org
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