Lean and 6 Sigma Management

Lean and 6 Sigma ManagementPeople Management

Mari-Cel Tena Llobera

Table of content

What is Lean?

What is Six Sigma?

Lean Six Sigma Management.

The role of HR in Lean 6 Sigma management.

Examples.

Conclusions.

What is Lean? The term "lean" was coined to describe Toyota's business during the late

1980s.

Lean means creating more value for customers with fewer resources. Provide perfect value to the customer through a perfect value creation process that has zero waste.

The Lean principles:

Value: Determine what steps are required (are of “Value”) to the customer.

Flow: Remove waste in the system to optimize the process to achieve a smoother pace.

Pull: Ensure the process responds to customer demand (“Pull” = want).

Perfection: Continuously pursue “Perfection” within the process.

To achieve that we have to apply learn transformation. Means change our old thinking to lean thinking. We have to change the focus of management from optimizing separate technologies, assets and vertical departments to optimizing the flow of products and services through entire value streams that flow horizontally across technologies, assets and departments to customers.

What is Lean?

A popular misconception is that lean is suited only for

manufacturing.

Lean can be apply in every

business and every

process.

Not true

What is Lean?

Customer Needs

Need Fulfillment

WASTE

Time

Customer Needs

Need Fulfillment

WASTE

Time (shorter)

What is Six Sigma? It was developed by Motorola at the end of 70´s.

Six Sigma is a disciplined that uses data and statistical analysis to enable

fact-based decisions. Set of techniques and tools for process improvement.

Is based in 6 principles that are:

Authentic customer orientation.

Data-driven and fact.

Process orientation, process management and process improvement.

Proactive management.

Collaboration without borders.

Search of perfection.

Define: The problem, improvement activity, the project goals

and costumer (internal and external) requirements.

Measure: Process performance

Analyze: The process to determine root causes of variation,

poor performance (defects).

Improve: Process performance by

addressing and eliminating the root causes.

Control: The improved process and

future process performance.

What is Six Sigma?

Leader: Senior-level executive who is responsible for

implementing Six Sigma within the

business.

Champions: Middle- or senior-level

executive who sponsors a specific Six Sigma

project, ensuring that resources are available

and cross-functional issues are resolved.

Master Black belt: Highly experienced

and successful BB who has managed several

projects and is an expert in Six Sigma

methods/tools.

Black belt: Full-time

professional who acts as a team leader on Six

Sigma projects.

Green belt: Part-time

professional who participates on a

BB project team or leads smaller

projects.

What is Six Sigma?

Lean Six Sigma Management

LEAN

Guiding principles based operating system.

Relentless elimination of all waste.

Creation of process flow and demand pull.

Resource optimization.

Simple and visual.

SIX SIGMA

Focus on voice of the customer.

Data and fact based decision making.

Variation reduction to near perfection levels.

Analytical and statistical rigor.

Strength: Efficiency Strength: Efectiveness

Lean Six Sigma Management

The role of HR in Lean 6 Sigma

The HR professional should know how the decision-making process for a

lean initiative is typically established.

The research demonstrated that success with lean depends upon how

HR changes and adapts it approaches along with the rest of the

organization.

There are 5 areas where HR can add the most value:

Building the transformation team.

Designing a new organizational structure.

Communications and monitoring the people pulse.

Integrating lean management into the talent system.

Integrating lean management into the leadership mode.

The role of HR in Lean 6 Sigma

There are 5 areas where HR can add the most value:

Building the transformation team: The teams will need top talent, both to meet the many managerial demands inherent in a transformation and to underscore the priority that leaders are giving to the transformation. HR will also need to work with senior leaders to craft a career path for people who join the team.

Designing a new organizational structure: HR’s support in identifying and staffing a stable management core at every level will be crucial to reinforce the changes. HR department worked with senior leaders to understand all of the factors in the new organization design that needed to be balanced, such as constraints in specialized skills, compensation questions, and aspirations for diversity and equal-opportunity policies.

The role of HR in Lean 6 Sigma

Communications and monitoring the people pulse: At the earliest stages of a transformation, one of he basic tasks for the leadership team is the development of a communications plan. HR will contribute helping build the communications capabilities of leaders and managers charged with persuading the organization, monitoring employee reactions and addressing concerns that arise.

Integrating lean management into the talent system: maintaining the lean-management knowledge base and transmitting the mind-sets to current and future workers will depend to a great degree on HR´s core talent systems for recruiting, training, people development and compensation.

Integrating lean management into the leadership mode: As current and future leaders learn the new behaviors—and learn to exhibit them— they will need comprehensive support.

The role of HR in Lean 6 Sigma

Examples

Conclusions

Organizations that successfully engage HR throughout their application of lean management see significant long-term advantages.

HR function will be instrumental to sustaining that new culture for the benefit of the organization, its people, and its customers.

HR Professionals with Six Sigma knowledge are absolutely an added advantage and a starting point for any organization embarking on achieving a strategic HR role.