Lean practice is not a lightweight version of Six Sigma but it cannot exist without it. Understand that Lean Practice is complex in execution if success is to be achieved.
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Formula for success• Meet customer needs• Design and operate flexible processes• Make value flow visibly• Operate to smoothed pull demand• Head to simplicity and perfection• Reap benefits for the business
• Customise Lean Practice• Adopt a flow approach• Use simple methods first• Attempt Six Sigma analysis• See the Big Picture
• Address social system change levers• Apply programme/project controls• Use change methods liberally• Recognise service differences
Actions and feedback loops• Reduce failure demand• Reduce wastes• Spread load• Reduce variation• Use slack capacity to improve efficiency• Price to value ratio impact
CreateCan we produce what the customer wants when it is needed?Can we deliver what the customer wants and prepare for the next according to real demand?
Maintain Organise
Measure
Can we keep the flow going so that it does not stop?Can we maintain a predictable flow rate in order to achieve planned performance?
Are we organised to support flow through the whole process chain?Can we deal with variation?Can we react quickly to resolve problems and recover?
Do we measure to promote actions which support flow?Do we know what it needed at each point in the process chain to achieve the overall goal?Are we developing the right resources and skills?
Those Japanese and other wordsMuda Waste: the one to concentrate on
Muri and mura cause wasteWhere else does it come from? Human systems
Muri Over-burden: near capacity resources do not work optimallyMura Unevenness: fast uninterrupted flow not possible with uneven demand – queues and lead time build upCould the root cause of everything but probably it’s circular
Gemba See for yourself what is happening in the workplace
Heijunka Level to schedule – the secret weaponSMED Single (digit) Minute Exchange of Die – true for service
too
Pokayoke Failsafing and mistake proofing
Genchi Genbutsu Facts for correct decisions and consensus from the source
Levers in the social system• Today’s problems come from yesterday’s solutions• Behaviour grows better before it gets worse• The cure can be worse than the disease• Faster is slower• The areas of highest leverage are often the least obvious
Programme and project management• Business case – link to corporate objectives• Governance – who is in charge?• Plan, agree, monitor and re-plan• Managing issues and risks
Business change• Kotter• Lewin: Unfreeze, Alter, Re-freeze• 4Cs: commitment, communication, co-production, consistency• Nudging behaviour in the direction of Lean• Benefit realisation: need for long-term measurement of progress
Service characteristics• Invisibility • Intangibility• Simultaneous production and consumption • Consumer involvement • Complexity and variability • Measurement difficulty
Lean for better service• Making sure there is a customer• There is no inventory – just inactivity• Services come in types which behave differently• Adapt techniques for the service industry• Do not forget soft areas
Is it possible to have Lean without Six Sigma?• No• Unless the Lean project is light touch
Same infrastructure• Management awareness• Communication• Governance• Skills and resources• Coaching, support and training
Oversight• Unique initiatives• Programme management• Project management• Especially monitoring, control and reportingShared approach and techniques• Use Six Sigma DMAIC or DFSS• Descriptive data analysis• Statistical analysis e.g. hypothesis testing