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6Sigma for the Office

6Sigma for the Office

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Sections

  • Strategic Alignment
  • general deployment Strategies
  • reducing System Complexity
  • outsourcing processes
  • Implement Performance Measurements
  • Eliminate Unnecessary Operations
  • Implement Just-in-Time (JIT)
  • Develop Supplier Networks
  • Summary
  • Suggested reading
  • project identifcation—process Analysis
  • prioritizing projects
  • performance measurements
  • eliminate unnecessary operations
  • Reorganize Physical Confgurations
  • Link Operations
  • Mistake Proofng
  • Total Preventive Maintenance
  • Brown-paper exercise
  • process Characterization
  • process mapping—SipoC
  • histogram
  • Control Charts
  • Change readiness
  • project transition
  • Cost–Beneft Analysis
  • infrastructure Analysis
  • Communication
  • Key Questions
  • Control plan requirements
  • Statistical process Controls
  • Creating metric dashboards
  • Conclusion
  • glossary
  • index

Lean Six Sigma for the Office

Series on Resource Management
The Intimate Supply Chain: Leveraging the Supply Chain to Manage the Customer Experience David Frederick Ross ISBN: 1-4200-6497-5 A Supply Chain Logistics Program for Warehouse Management David E. Mulcahy and Joachim Sydow ISBN: 0-8493-0575-6 Hands-On Inventory Management Ed C. Mercado ISBN: 0-8493-8326-9 Retail Supply Chain Management James B. Ayers and Mary Ann Odegaard ISBN: 0-8493-9052-4 Sustaining the Military Enterprise: An Architecture for a Lean Transformation Dennis F.X. Mathaisel ISBN:1-4200-6224-7 Operational Excellence: Using Lean Six Sigma to Translate Customer Value through Global Supply Chains James William Martin ISBN: 1-4200-6250-6 New Methods of Competing in the Global Marketplace: Critical Success Factors from Service and Manufacturing by William R. Crandall and Richard E. Crandall ISBN: 1-4200-5126-1 Supply Chain Risk Management: Minimizing Disruptions in Global Sourcing by Robert Handfield and Kevin P. McCormack ISBN: 0-8493-6642-9 Rightsizing Inventory by Joseph L. Aiello ISBN: 0-8493-8515-6 Integral Logistics Management: Operations and Supply Chain Management in Comprehensive Value-Added Networks, Third Edition by Paul Schönsleben ISBN: 1-4200-5194-6 Supply Chain Cost Control Using ActivityBased Management Sameer Kumar and Matthew Zander ISBN: 0-8493-8215-7 Financial Models and Tools for Managing Lean Manufacturing Sameer Kumar and David Meade ISBN: 0-8493-9185-7 RFID in the Supply Chain Judith M. Myerson ISBN: 0-8493-3018-1 Handbook of Supply Chain Management, Second Edition by James B. Ayers ISBN: 0-8493-3160-9 The Portal to Lean Production: Principles & Practices for Doing More With Less by John Nicholas and Avi Soni ISBN: 0-8493-5031-X Supply Market Intelligence: A Managerial Handbook for Building Sourcing Strategies by Robert B. Handfield ISBN: 0-8493-2789-X The Small Manufacturer’s Toolkit: A Guide to Selecting the Techniques and Systems to Help You Win by Steve Novak ISBN: 0-8493-2883-7 Velocity Management in Logistics and Distribution: Lessons from the Military to Secure the Speed of Business by Joseph L. Walden ISBN: 0-8493-2859-4 Supply Chain for Liquids: Out of the Box Approaches to Liquid Logistics by Wally Klatch ISBN: 0-8493-2853-5 Supply Chain Architecture: A Blueprint for Networking the Flow of Material, Information, and Cash by William T. Walker ISBN: 1-57444-357-7 Introduction to e-Supply Chain Management: Engaging Technology to Build MarketWinning Business Partnerships by David Frederick Ross ISBN: 1-57444-324-0 Supply Chain Networks and Business Process Orientation by Kevin P. McCormack and William C. Johnson with William T. Walker ISBN: 1-57444-327-5 The Supply Chain Manager’s Problem-Solver: Maximizing the Value of Collaboration and Technology by Charles C. Poirier ISBN: 1-57444-335-6 Lean Performance ERP Project Management: Implementing the Virtual Lean Enterprise, Second Edition by Brian J. Carroll ISBN: 0-8493-0532-2 Basics of Supply Chain Management by Lawrence D. Fredendall and Ed Hill ISBN: 1-57444-120-5

Lean Six Sigma for the Office

James William Martin

Crystal Ball® is a registered trademark of Oracle® Software Corporation. Minitab® software is a registered trademark of Minitab, Inc. MATLAB® is a trademark of The MathWorks, Inc. and is used with permission. The MathWorks does not war‑ rant the accuracy of the text or exercises in this book. This book’s use or discussion of MATLAB® software or related products does not constitute endorsement or sponsorship by The MathWorks of a particular pedagogical approach or particular use of the MATLAB® software.

CRC Press Taylor & Francis Group 6000 Broken Sound Parkway NW, Suite 300 Boca Raton, FL 33487‑2742 © 2009 by Taylor & Francis Group, LLC CRC Press is an imprint of Taylor & Francis Group, an Informa business No claim to original U.S. Government works Printed in the United States of America on acid‑free paper 10 9 8 7 6 5 4 3 2 1 International Standard Book Number‑13: 978‑1‑4200‑6879‑5 (Hardcover) This book contains information obtained from authentic and highly regarded sources. Reasonable efforts have been made to publish reliable data and information, but the author and publisher cannot assume responsibility for the validity of all materials or the consequences of their use. The authors and publishers have attempted to trace the copyright holders of all material reproduced in this publication and apologize to copyright holders if permission to publish in this form has not been obtained. If any copyright material has not been acknowledged please write and let us know so we may rectify in any future reprint. Except as permitted under U.S. Copyright Law, no part of this book may be reprinted, reproduced, transmitted, or utilized in any form by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying, microfilming, and recording, or in any information storage or retrieval system, without written permission from the publishers. For permission to photocopy or use material electronically from this work, please access www.copyright.com (http://www.copyright.com/) or contact the Copyright Clearance Center, Inc. (CCC), 222 Rosewood Drive, Dan‑ vers, MA 01923, 978‑750‑8400. CCC is a not‑for‑profit organization that provides licenses and registration for a variety of users. For organizations that have been granted a photocopy license by the CCC, a separate system of payment has been arranged. Trademark Notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe. Library of Congress Cataloging‑in‑Publication Data Martin, James W. (James William), 1952‑ Lean six sigma for the office / James William Martin. p. cm. Includes bibliographical references and index. ISBN 978‑1‑4200‑6879‑5 (alk. paper) 1. Total quality management. 2. Six sigma (Quality control standard) 3. Office management. 4. Service industries‑‑Quality control. I. Title. HD62.15.M3744 2008 658.4’013‑‑dc22 Visit the Taylor & Francis Web site at http://www.taylorandfrancis.com and the CRC Press Web site at http://www.crcpress.com 2008011862

Contents
Foreword.........................................................................................................xi About.the.Author........................................................................................... xv Introduction.................................................................................................xvii

Step 1: Align improvement opportunitieS 1
Strategy.Alignment.................................................................................3 Overview......................................................................................................3 What.Is.Kaizen?...........................................................................................4 . Strategic.Alignment......................................................................................8 General.Deployment.Strategies...................................................................10 Reducing.System.Complexity.....................................................................17 Outsourcing.Processes................................................................................18 How.to.Deploy.Lean.in.Three.Steps...........................................................22 Step.1:. Align.Improvement.Opportunities.......................................23 Step.2:. Plan.and.Conduct.the.Kaizen.Event.....................................24 Step.3:. Implement.Solutions.and.Change.Behaviors. .......................25 . Important.Elements.of.a.Lean.System........................................................26 . Understand.the.VOC........................................................................26 Reduce.Product.and.Process.Complexity...........................................28 Deploy.Lean.Six.Sigma.Teams..........................................................29 . Implement.Performance.Measurements.............................................29 Create.Value.Stream.Maps................................................................29 . Eliminate.Unnecessary.Operations....................................................30 Implement.Just-in-Time.(JIT)...........................................................30 Develop.Supplier.Networks...............................................................31 Implement.Visual.Controls.and.Pull.Systems....................................32 C . ontinuously.Update.Process.Technologies.......................................32 Summary....................................................................................................32 Suggested.Reading......................................................................................33 

i  ◾  Contents

2

Project.Identification. ...........................................................................35 . Overview....................................................................................................35 Lean.Supply.Chain.....................................................................................36 Conducting.a.Lean.Assessment. .................................................................39 . Breaking.Down.High-Level.Goals.and.Objectives.....................................41 Project.Identification—Process.Analysis.....................................................43 Typical.Project.Examples............................................................................45 Key.Metric.Definitions.............................................................................. 46 Project.Charter.Example.............................................................................50 Prioritizing.Projects....................................................................................51 Summary....................................................................................................55 Suggested.Reading......................................................................................56 Lean.Six.Sigma.Basics...........................................................................57 Overview....................................................................................................57 Understand.the.Voice.of.the.Customer.(VOC)...........................................61 Create.Robust.Product.and.Process.Designs.to.Reduce.Complexity.......... 64 Deploy.Lean.Six.Sigma.Teams....................................................................67 Performance.Measurements........................................................................69 Create.Value.Stream.Maps.(VSMs)............................................................70 . Eliminate.Unnecessary.Operations.............................................................74 Implement.Just-in-Time.(JIT).Systems.......................................................76 Reorganize.Physical.Configurations..................................................78 5S.and.Standardized.Work............................................................... 80 Link.Operations................................................................................82 Balance.Material.Flow...................................................................... 84 Bottleneck.Management........................................................85 Transfer.Batches.....................................................................87 Mistake.Proofing...............................................................................87 High.Quality.....................................................................................89 Reduce.Setup.Time.(SMED)............................................................ 90 Total.Preventive.Maintenance...........................................................92 Level.Demand...................................................................................94 Reduce.Lot.Sizes. ..............................................................................96 . Mixed-Model.Scheduling. .....................................................98 . Supplier.Networks.and.Support..................................................................98 Implement.Visual.Control.and.Pull.Systems—Kanban............................100 Continually.Update.Process.Technologies................................................102 Summary..................................................................................................105 Suggested.Reading....................................................................................106

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.....Breakdowns..............Up....the.................. 116 Assign..........the...........and...........Roles....Training........Be...Kaizen..............Project........................Support...............139 Suggested... 118 Collect.................Are.............Letter.............................Mapping...122 Developing....a...........127 Bring....113 ...and.............Schedule.....Ensure.............Available.........Event...Data.........138 Summary....and...Discuss....... Marking.Process....Charter...the...Event.Improved.and.Event............Prioritized.Cycle.....a...................................Conditions..........................of...........................................Planning..Team................ Communicating...........Times............ Kaizen...........for...........Layouts...........136 Change.............Information.......a.......Members............Develop....123 ....the...Agenda..........for.......of...Workflow.137 Evaluate. Select....143 5 .................129 Collect........................at..........Rooms.. Procedures.Team..........................Facilities.........141 Value............Maps..................Together................... 119 ...Areas............ 116 Reserve...Flip......... ..................................and.......................124 Kaizen.Event.................................Participation.........................................Including..........the...Responsibilities.........Analysis...to............Reading.....and.......128 .Event...........137 Apply.of............and........124 Setting....Event.Collection............... 118 Ensure.....Required.....Event...........Available..............Charts.............................................Examples.....................120 ...........Breakout....Kaizen..Examples.... 118 ...Operational.. .....Workflows...........of................128 Conduct.Room................Equipment........... Collect....................the.Assist..........Conference....Event.............to............Materials....131 ..............for.......Are...Area..................Pictures.... Analyze..Stream........124 .....on.....................126 Conducting.........a........................................... Create.5S.140 Data..... 111 Overview......to.Data......Layouts........Objectives............and............and............Operation.Stream.....Team.................Team....Best-in-Class..of....the.....Mistake-Proofing............Information............127 Discuss.......Detailed..............................................Every...............Personnel............Project...Financial..........Kickoff....................... ..of....as............. 117 Obtain....Value...... Taking..and..........122 Obtaining...........Process.....of................Event.......Methods.....125 Kaizen............................ Process..........the.............Floor...........Improvements....... 111 Prepare.....Leader............Communication........................Process....Process.........Event.......................................the.....................................................Full..Operational............Supplies........... Ensure..141 Overview.to.......Organizing........Contents  ◾  ii Step 2: plAn And ConduCt the KAizen event 4 Kaizen..129 Facilitate.Kaizen...Other..Team..................121 Obtaining................................the........................the..............................................................................

...Inventory...Graph.....................Analysis..........5:............ Supplier......................................... 215 Step 3: implementing SolutionS 7 Building................................................................185 Control......of.............Mapping—SIPOC......................and............Business. 226 Cost–Benefit............................Common..........................................................Plot...................Change..Workflows.....................233 ........Improvement..........184 6 Process...for......................Analysis.......................213 Suggested.... Root...................................Market......Analysis.........................Analysis............................................................................Stakeholder..............Development...............................................................................................................205 Example..Product. Hiring........... Simple.................................................Charts..................................Sustainability............Data...................................................Analyzing..202 Example....................Opportunities....................................168 Box.......................................Characterization.............................Plot.....................................and................................ New............................ 204 Example..........Product........................................Tool..........4:.......Improvement........Reading........................................................................................................................................................Forecasting....185 Common.....2:........169 Scatter.229 Infrastructure.......Job........................170 Control...Analysis....................................Change......... Example:...................Process............185 Overview.............................182 Suggested...................170 Time......165 Histogram..............................................Management.....for...........225 Building...........163 Cause-and-Effect..................Employees..........iii  ◾  Contents Brown-Paper......Shadowing.................................................................Process...Reading...............................a..1:... Financial..Using.....................177 Summary................Data.212 Summary........and....149 Process.........................227 Key.......................223 Project........ New.................... 208 Example.................................................................................................................................Case..........................Effectiveness..............................Research............167 Pareto...6:...... ...... Accounts..................160 Process..............................................and........(C&E)..............Receivable...............................175 ........................................210 Identifying........Chart......Transition................................... Example:............Performance..Cause...................Improvement...........................Case............Readiness................199 Example.....Analysis........Changes...................... .........................164 Five-Why...Analysis..........3:............................Reduction... 200 Example............................Exercise......................194 ..............................Series.......................Prioritizing... 151 ....................Process............................................................................................196 Examples......172 .................Diagrams.........................Business............. 219 Change...........Strategies...........a..........................219 Overview..............................................

..........263 ................. 242 Statistical.... Appendix..............................Effects..........2:...................239 Overview.........Activities.................Chains........................................System............... 234 Communication...295 .......................................Contents  ◾  ix Scheduling................................1:...............................274 Suggested.................................................................(FMEA)................................................across......Plan..258 Quality...................................241 Important...................Tools.............321 ..............................240 Control..............Control........Management..........235 Summary............267 Process..............239 Key.....................................................................................275 9 Conclusion........................................Activities................................Tools..........................................3:..........................255 Other.Reading...New.......................................................................................to..........................259 Communicating....................................Mode..............269 Summary.............Software................. Figures..........Global....and......................................................Supply..........263 Suggested.........................................................236 Suggested...................Dashboards.............Software............. Summary............Tables.................259 Follow-Up....................................................Reading..................Change.......................................Behaviors..Companion...............................................................................305 Index...... ..and...... Crystal...............................................and............Changes.Process.............................Reading.......................Change........Plan......................Control.261 Creating..............Improvements......................................................Ball®..............................................................285 Appendix..........Requirements........................................................................................Questions..Minitab. by.....Metric.......Quality.............265 Reinforcing....... ........................................................254 Failure......Proposed..........Control..........277 Appendix......................................................................................Controls........ 244 Measurement..................Process...........Change..............and............................................................237 8 Implementing......Solutions..............................................................................................................................267 Overview........Organizational..... Glossary...............................Analysis...299 ......... Minitab®.................................Statistical.....the..................................

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systems.the..customer. and.concepts.in.teams..and.within.to. of.These. across. expanded. been.just.book.flow.process..process. developed.. Extensive.productivity.in.understand.that.in.to.reference.only.several.virtual. concepts. dispersed.within.. as.in.reader.from.analyze..in..collect.industries.concepts.requests. procurement.finance. that. research.and.writing..forms.30.this.to.the.work.materials. specifically. Kaizen.physical.by.in. office... improve.manufacturing.operational.of.conduct.new. methods.systems.one.found.in.and. we.the..days.is.team. rapid. and. and.an.brought. service.operational.are.ways.using.no.form.and. the.virtually.lists.service.example.to.help.immediate.possibly. discussion.research. This. environments. As.used.events.within.the.objects. and.means..are.not.his.appears.team.her.tool. in.as.could.and. Kaizen.across.consulting.Lean Six Sigma for the Office.information..predominates.Sigma.various.for.. over.that.particular.local. improvement.contained.have.As.projects. xi .or. I.information.were.objective.improvement.reference.simple.of. world..Kaizen.to..focus.that. accounting.rapid. Service...our.conducted.industries.of.. In.and.in.a.are.to.an.not. new.by.analyzed.service.quickly.Kaizen.and.that. our.and.together..efficiency.industries.form.different.it.Or.have..your.retail.to.rapid..in.the.organization’s.and. those.information.key.it. good. for.information.assignments.goal.imply. and.Lean. service.contained.teaching.in..my. rapid improvement.tools. condensed.this.increase. information.will.Six.materials.physical.from.performance.sales.flow.usually.apart”.exception.most...widely. the.and. The.form..book. information.formats. environments.These.as.but.that.Although.years.assignments. improvement. and. make.and.of.. and.currently.the.in.of. systems.every.is.is.Kaizen.develop.geographically. information. improvement.collection. your.data.rapidly.to.orders.of.identify.systems. or.both.to.because..practical.also.Kaizen.Lean.systems.“to.past..but. in.if.”.been.concept.marketing.technology.graduate.. and..synonymously.opposed.provide... banking.dynamic. such.unique.Sigma.measured. will.take. terms. events.measured.food.methods.method.book. process.of.execute.characteristics.enable.process..work.events..operational.contain.plan.workflows.a..is.a. the..is. use.or.to.flow.does.improve. world.then.is.Foreword My. and.their.example.(IT). have.Six..have.was.to.satisfaction.types.improvement.logistics.distribution.have.transactions. “to.. the.diverse.span.. development.tools.from.a.service.This. insurance.service.

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typically lags schedules. but not sustainable over time. At a local level. Resources are prioritized at a No resource prioritization and local level or not at all. Benefit and financial assessments and Identification integrated into annual strategic plans. Not sustainable. Continuous Visibility enables continuous improvement over time to achieve Improvement strategic goals and objectives. Responsibilities Formalized through operational 4. Projects allocation may be nonexistent. Informal and based on project types. there are nonutilized resources. 6. Strategy Alignment  ◾  13 . Complete and sustainable long8. Benefits are realized informally and seldom exceed planned goals and objectives. No organizational structure and personality dependent. Execution and based on resource availability and business benefits to achieve productivity gala and objectives. Resources can be optimally 5. Integration 9. Organizational term goals.table 1. Communication Formalized communication at all levels throughout an organization using multiple channels. Roles and Formalized based on benchmarked deployments. Hierarchal and formal allocating resources based on business priorities. Informal communication at local No communication at all unless there is a major breakthrough. are usually incremental to resulting in project execution if current goals and objectives. Organizational Structure No identified roles or responsibilities. Driven Top Down Project execution is dependent Project execution is dependent on other business priorities and on available time of the people participating in the initiative. Project execution is time phased 7. 3. Depending on business priorities continuous improvement is sustainable only short-term for a few years. Benefits are isolated and may actually be negative if capital is required or root cause analyses are incorrect. levels. Deployment Strategies 2. None. Resource prioritized and allocated by on Prioritization identified projects relative to and Allocation other productivity drivers.2 Driven Bottom Up Informal and allocating resources based on local priorities. Isolated Comparing deployment Strategies 1.

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process.the.briefly.Lean.steps.the...breakdowns.and.must.work. Process Improvement Step 3—Implement Solutions and Change Behaviors 7.analysis.this.future.the.organizational.increasing. events. high-level. extent.countries.sections. to.move...across..steps.Kaizen.workflow. Kaizen Event Planning 5. basics.diverse.not.. the.select.the..will.should.can.set. to.22  ◾  Lean Six Sigma for the Office and. Strategy Alignment 2.Table.people.Six.but.follow-up.who. your. and.of.Kaizen..new. hapters.to.map. provide.road.planning. Lean Six Sigma Basics Step 2—Plan and Conduct the Kaizen Event 4.must.visualization.In.activities.have.improvement.planning. and.transfer.A.rigorous.process..other. greatest.agents.and. particular..follow.The. table 1.Finally.5.language..Lean. goal.rather.communicate.local.the. rapid.rely. Data Collection and Analysis 6.strategy..audits.then.language.be.operational.into.procedures. building.use.three.be.a.. book. an.book.parent.these.including..into.enable. to. local.understood. use..the. to.. very.been.. new. how to deploy lean in three Steps A.alignment.major.well.nine.and.. c .5S.documented.that.in.trained.of. possible.documentation.its.5 how to deploy Kaizen eents in three Steps 1.chapters.to.Once.facilitators.behaviors.Sigma.include.well.a.trained.visualization. is.to.1.through.and.business. Organizational Change Step 1—Align Improvement Opportunities . accelerate.identification..events.topics.office.unambiguously.be.been.efficient.case.speak.process.discuss.to.organization.performance.methods.deployment. this.designed.Ideally.prevent..by.nine. increase.. employees. rocess.is.changes.deployment. documented.the. to.comprising.alignment.The. process.for.execution.into. level.. a.will.Sigma.reinforcing.process. detailed.fully.and. or.process.words.. Kaizen.an.has.also. Project Identification 3.cultures...These.of. easy-to-understand. Also.so.format. or.improvement.methods. of.these.implementing.road.examples.methods.behaviors.. Building a Business Case for Change 8.of.be.divided..detail.. Reinforcing New Behaviors 10.data.chapters. and.subsequent.a.is.chapters.respect..the.and.map.The.. self-contained.Six.who. Implementing Solutions 9.solutions.in.local..most.event.is.nine. discuss. reference.professionals.instructions. improvement.a.project. in.the.shown.work.of.collection.and. and.and. p .way.particular..opportunities.for.We.changing..next.step.on.

.Lean.discussed.a.the.Improvement..Six. and.by.scrap.business.Six.gaps.should.an.second.Lean.an.. requiring.events.produce.case. relative. as.. characterize. projects.be..case.. allowances. deployment. facilitate.an.objectives.describe. .directly.. way. evident.in.will. by.a.A.6. increase.concept.a.goals.begin.context. business. analysis.to. a.deployment..gaps.are.business.However. How It Gets Done Analyze cost and revenue drivers. the.business.be..and. People.inventory. as.as.discussion. evaluate.that. move technology.project.performance. to.be. Identify opportunities in new products and services to improve performance.in. Apply Lean Six Sigma and Design for Six Sigma methodologies to reduce and manage technical.and. to.the. scheduling. What.the.Six.must.work.operational. and. and other project risks.the.planned.be.book.workflow.setup.improvement.example.this.1. Six.. great.concept. and. benefits. activities. production.Development.6 Building a Business Case for improement What Needs to Be Done 1. other.a.a.we.aligned.should.percentages.These.is.major.(NVA).level.is. to.downtime.that. lower risks.office.be. Sigma. benefits?.Sigma. a.Sigma. of..provide.project’s.that.. Identify performance gaps and productivity opportunities. similar.related.Lean.when.benefits.rather.The. useful.developing.management.for.. also.gaps.the.this.reduce.activities. eliminating. on.senior. customer issues.Six.Sigma.a.deploy.opportunities..necessary.organizational.to. consumes.activities. rates.In.Table.this. resources.specific.As. required.. will.to.every. and increase market share. benefit. project’s.to.non-value-adding. by. revenue.time.a. and.related.tasks.key. regulatory issues that pose risk relative to strategic goals and objectives. secure..should. least.and.level.given. gaps.are. the.identifying.will..at.made.that. a. Develop baselines and improvement targets for business and financial metrics aligned with business opportunity.environment.metrics.than.. customer.benefits.an.performance.out.objectives. Break the opportunities into linked and actionable project charters.an.. expenses.First. properly.projects.discussion.all.considerations. are.business... core processes that are broken. to.goals. supplier interfaces.including.occur.business.of.prioritization. financial.carry.. disagree..resources.priority.necessary.Kaizen.Sigma.and. case..Strategy Alignment  ◾  23 Step 1: Align Improvement Opportunities Although.projects.at. performance. achieved. a. Lean.greatest.case. sales.well-balanced.senior. prioritize..organization’s.will. business.that.management’s.. of. is.process.benefits.organization.to.rework.our. supplier.activities. it. how.Alignment. 3.in. to. may.will.to. A. In. cost. capacity.Lean.important.three. at. higher.lists. analysis. 2. necessary. business.with.is. table 1.to. financial.successfully. the. most. first.basic.

direct.expenses.improvements.improve.can.completed.As.projects.classified.equipment.not.have.through.the. identified.may.However.the.has.show.of.require.may.Sigma.As.many.while.an. improvement.projects. improvements. second.analysis.. statement.The.There.charters.a.having.and.as.and.money. These. cost.24  ◾  Lean Six Sigma for the Office increases.time.process.are.enable.event.product.be.processes.a.example.the.scope.avoidance.In. process.project.projects.projects..a.of.will. very.to. will..events.can.can.in.limited. project..of.better.5.Also.known.a.of.executed.are.include..be.as. an.be. over.tasks. financial.time.or.These.to.be. can. several.asset.be.to.eliminate. creation.This.other.use.all..team.event.asset.performance.horizon.of.impact.local.and.for. profit-and-loss.the.gaps.execute.by.an. approach.in.and.the.to.reduce.be.subset. Six.through. impact. an. Figure.methods. discuss. and.the.others..be.the.increases. event.an..Sigma.will. or.of.analyze. in. As.have.service. major.. only.an.of.There.into. a.a.as.be.been.team.execute.also. organization’s.projects.have. but..financial.a.significant.are.inventory..conducting.executed.are. key.an.sheet. an..deployed. for.a.activities. a.tools.and.Kaizen.prevent. cross-functional. Chapter.projects.have..teams..or. may..created..operations..increase. execution.high.include.using. Step 2: Plan and Conduct the Kaizen Event Once.performance. be.data. team.information.ensure..satisfaction. charters..to.a..will..a.activities..events.money.will.include.the.methods.the.standard..project.should..invested.balance.or.extra.required.asset.up-front.or.executed.if.Six.higher..short.toolsets.cost..such.all. in. (P/L).interest..Kaizen.and.in..to.noted.accounts. integrated.Sigma.they.those... Lean. root. Kaizen.an. improvement. which.activities. we. deployments.their. revenue. Six.them.plant.set. be.a.required.the. found.of..which.money.projects. way.simple.. event.. shown. in.is.very..process.example.It.part.conversion.been.of.improve.of.summary. In.solution.may.conversion. require.focus.projects.category.daily.available.causes.the.will.gained.some. financial.Lean.be. of.Kaizen.to.usually.future.rate.organization. using.tools.that.expenses. an.integrating.receivable. by.used.in. and.also.Lean.and.topics. Lean.Lean. Sigma.cash.days.been. a..allocating..assets. to. of.other.process. that.that.return. analysis. develops. of..a.unfinished.if. requiring. they. benefit.various..is.an. makes.in. can.. no.to. designed.directly.be.should.projects.assets. business. purchase.These.to.events. presentations.five.and. other.activities.improve.identified.can..poor.have. when. 2.organization. using.This. workshop.or.resources. requiring. within.Once. types.stakeholder.there. through.It.work. days.that.Six.a.amount.scheduled.projects.third. to.charter.a.identify..proven.As. .identified.Lean. may.Final. for.analysis. invested.has. of.A.useful.process.to.that.organizations.deployment.data.Kaizen.or.a.planning. the.work.These. management. example.quickly..expenditure. changes. also.periods. improve.finance.show.according.assessments.three.extensive.to.reduces.capital..schedule.operational.those.. option.project. design.. workflow.service.borrowed.expanded.and.revenue.is.be.increase.These.plans.of.in. is.selection. Kaizen.on. an.2.work.that. workflows.. be.categorized. These. organization’s..

applying.complete. the. and.work.will.to. maintain.change.to.to.. tasks. effectively.plan.how..of.improvements.Once.data.improvements.structured. business.of.solutions.Kaizen. root..There.events.to.for.we.Chapters.can.and.will.. for.integrating. fact.is. problems..on.templates.a.their.employees. irrelevant.5.improvement.case.real.recognition.sustainable.analyzed.to.a.event.has.4. implement. tools.but. analyze. words.the. data.team.solutions. solutions.in.must.being..and.that.will.and. the.all.majority.and.that.solutions.to.reinforcing.collected.the.process.discussed.9.improvements. activities. The.countermeasures.to.a. to.analyzing.for.effective..workflow. are. directly.a.It. process. in.5.complete.project.operations.eliminate.countermeasures. support. beginning.templates.process..time.information.communicated..trained.that. collecting.proven.be.days.planning.a.include.Excel.is.other.their.activities.team.Kaizen.the.for.new. a.is.enable.be.associated.over.help.acting..to.the. In.that. an. In.organization. collect.sustain.procedures.change.the.a.the.in.designed.and.an.how...modification.within.improvements.with.process.In.and.root. teams. organizational.are.change. eliminate.to.process. a..sustainable. easy-to-use.root.advantages.process.on.Kaizen.convincing.to.local.that.standardizing.its.an.and.required.are. and.problem..to.rewards. work.. At.develops.developing.causes.the. chapters.on.methods. .tools.important.causes.activities.together.within. the. team.a.build.7. an. causes. performance.fall. to.project.and.complete.organizational.Other.cause.various. simple.discuss.people.or.by.mistake.process.that.the.their.owner. and.linking.more.complex..process.be.transitioning. Step 3: Implement Solutions and Change Behaviors Organizational.then. event. improvement.recommended..This..focus.also.for.be. other.team.matter.process.valid.their.use.event.project.root. necessary.systems.a. poor.workflows.process.analysis.to.In.we. Kaizen.and.event..to.directly.and.into.controls.business.subsequent.are.problems.activities.to.will.discussion.value.team.process.to.focus.order.linked..any..Strategy Alignment  ◾  25 operations.resources.several.root. that..team’s.new. In. work.organization.importance.we.improvements. Sigma.necessary. easy.execute.book.can.on.characteristics.later. an.process.But.numerous.and. be.are.This..initiatives.solutions.the.Kaizen.follow-up.from.they.a.as.based.work.is.new.changes.workflow.activities.include.must.of.through.process.come.change.manage..countermeasures.analysis.work.for.organization’s.Chapter. to.behaviors. and..of.requires. their..provide.of.required.that. will. and.basis.well.sustain.activities.success.of.obtain.a..by.will.an. Several..behaviors. complicated.in.conduct. process.a.of.to.a.to.show. recommended.to.are.may.a.disuse.process. Six.requires. local.improved. team’s.unfinished..will.data.cause.simplifying..consisting. as.process.Kaizen. activities.and.that. immediately. an.process.and.from.owner.the.training.schedule.a.process. by..produce.developing.shown.and. aspects.been.detail.Kaizen.of.on. effective.sequential.which.Also. a.to.list. and.events.Chapters.proofing.implemented.with.the.Kaizen.this.of.will.create.shown.Kaizen.of.provide.team.work.be..a.

. we.daily.a.additional.be.our. behavior.poor.countermeasures.context. other. a.and.the. some. way.take.. translated.change..marketing.the. immediately.is.VOC.requirements.In.critical. Kaizen.its.execute.Kaizen..The.Kaizen.20.discussion.behaviors. process.have.unknown.a.characteristics.summary.the.create..organization.Chapters..influenced.using.a.organization.employees.its.methods. powerful.owner. segment.proper. important.and.discussion.has.improvement. service.Then.systems.and.then.be. translation.time.a.the.on. This.. content.VOC.by.completely.tools. set.Sigma.of.system.eliminate. and.to.a.between.relative.employees..period.highly.chapters.organization. correctly..present.organization.have.for. ethodologies..a.must. to.external.introduce..rewards.causes. research.our.behaviors..Our. rganization. workflows. have.3.listing.However.methods.. been.and.an.. organizational. through.to. misunderstood.that.must.years.an.process.concepts. into.must.of.In.local.period.success.of. technology..with.based.through.necessary.2.a. that.and.extended.focus. .as.change. market. of.these.will. It. customer. and.practice. in.some.sales.Over.organizational.mass. will.extended.an.positively..of. the.an.customer.may..voice.. of.may.long-term.implies. modern.provide. firmly.organizational. m .customers.and.particular.26  ◾  Lean Six Sigma for the Office o .eliminate. the. P. because.automated..team.waste..compare.Six. processes.projects.Kaizen.translated.is...an.its..process.value.high. Understand the VOC Understanding.an. John.the.deployment..needs.and. of.new.the.willingly. specifications.behaviors.service.team. voice.and.been.has.Sigma.priority.this. and.Lean.be. this.around.a.new..will. Lean. internal.new. project.assumed.identified. (VOC).and.and.need.Lean.ongoing. corporate.engineering.office.process. by.the.These.key..Lean.that.identifying.by. its. based.positively.reward.processes.tools.rapid.a.of.to. discuss.current. is..Lean.when.This.as.expectations.and.probability.in. Kotter.customer.will.the.the. cultures...use. how.elements.quantifiable.3..performance.will.of.shows.be. is.correctly.a. for.high. information. then. important elements of a lean System Figure.briefly.words.recognition.will. shown.its.be.customer.for.process.to.that.But.process..15.true. VOC.improvements.. (IT).has. must.in.Six.is.high..Because.of.can.and..design. and. that.as.a.incentive.describing. a. on.number.recognitions. and.quantifiable.in.However.gathered.elements.communications.later. requirements.If.if.organizational.in.of.be.for.team.root.analyzing.ten.large.a.Six.of. activities.time. we.it. can. market.events.that.1.to.elements.or.work. of. are..these.discussion. rigorous.and.been. discussed.expand. by.of.applied.our.specifications.basis.and.only.well.In.reinforced. is.Sigma. on.information..these.ten.identify.has.it.also.substitutes.information.

the. Comparison to process performance. stream. characteristics..critical-to-quality.3 ten important elements of a lean system.quantified.team..similar. 6. collected. and.Ys.being.and.then..workflow. process.. Eliminate Unnecessary Operations 5. directly.successively. Deploy Lean Six Sigma Teams 9.internal.Strategy Alignment  ◾  27 1. .related. Customer demographics and distribution channel.expectations. Implement JIT 6. Customer themes or critical-to-quality (CTQs) characteristics.needs..translated. operational..shows. comparisons. rocess. Translation of CTQs into specifications (Ys). table 1.. 3.Kaizen. 5.or. reports.analyzed.themes.major. with. Market research. These. Continuously Update Process Technologies 2. (VSMs).. using.cost. Develop Supplier Networks 7. 7. made. 4. Identification of performance gaps.into.to.into. performance. Implement Visual Controls and Pull Systems 4. 8.characteristics.7.Table. Market segmentation.or.. Reduce Product and Process Complexity 3. or.1.are. Development of projects to close performance gaps.customer. p .quality.value. Understand VOC 10.time.specifications. will.the. current. Create Value Stream Maps Figure 1.how. maps.by. be.(CTQ).7 translating the voice of the Customer (voC) 1. value. from. 2. Implement Performance Measurements 8. data.

simplify. processes.to.may. were.to.me. management. partners. a. non-value-adding.workflow.hypothetical.increase.complaints.level. Kaizen.rebate.reasons.call.enter.could.rebate. In.volume. center.calls. because.waiting. the.other.for.. to. and. reduce.such.and...stores. suppose.available..or. high.lower.business.an. system. project.a. and.reducing.the.customer.in.is.chapter. a.go. expenses. and.a.be.some. reduce. caused.off....information.. these.will..rebate.creates..a.and.pressures...to.a.of.process.higher-than-expected.No. deploying. mail.volume.code. an..a.a.factor.. above. complexity. Kaizen.known. First.example.and.products. be.expenses. code...this.several.incoming. policies.the.travel.increase.for. a. However.returned. described.any. and.answered.capacity.may.would.usually.issue..time.increases.remaining.rebates. resources.a.travel.. conditions.analyze.eliminated.their.customer.These.that. process.unnecessary.projects.be.some.There.In.be.volume. of.will. period..Second.reduce.created.sense.call.higher. may.also.the.it.. more.the.to.complexity. to. by.and.frequency.needs.percent. to. when.incorrectly. intensive. travel. look.Reducing. regarding.logistics.the.operation.this..operates. expenses.questionnaire.has. routing. overall. to.. as. example.automated.time....context.eliminate. at.were.or..travel..of. ways.In.problems.call.or. be.map. a. system’s. higher.process..unprofitable.a.complexity.call. following.volume.a..also.suppose...connected. summary.investigate.incoming.or.contrast. Kaizen.volume. a.practices. for.and.call.several.28  ◾  Lean Six Sigma for the Office Reduce Product and Process Complexity The.expenses. or.effectively. from.people.longer. example.within. travel.related.to.competitive.. causes.it. rebate.purchases..issues..are. process.this.In. manually.by.to.not..processes.would.are.an. of. processes. general. for. manufacturers.for.due.. a.also. a.of.eliminating.Kaizen.customer. of.many.When.by. once. which. team.be.it.center.expected.reasons.be..example. As.obtain.documentation.rebate.important. latter. to. organizational.may.50.the.noncore.a. VOC.allow. project.improve. by.include.As.this.then. work.at.reason.sense. to.customers. are.trips.As.. another.this.the.make.centers. eliminating...call.making.operation.exceed. process.operational.back. it.costs. level.the. by. complicated.of. the.are.process.25. complexity.not.to..tears.fuel. .to.team.on.incoming.into. level.be.related.Best..make..manufactures.. their.breakdowns. workflow.include.call.Kaizen.from. incoming.make.and.An.could.at.reducing.how.expenses.incremental. best-available.could.systems.rebate.importance.services. utilized. As..an.a. has.may.and.other.organization.this.the.the.its.been.sends. Buy.trips.directly.How.. team.be. mechanics. maintain.very. guideline. teams.. been.if. and.complexity. identifying.well.one.products.rebates.as..collection.completes.call. at.they. assigned.would.or.can. increase. reduce.this. simplified.a. mailing. a.to.form.earlier.initial.key..this.similar.For.necessary. significant.. require.prior.These.process.in. complicated.of.and.decreasing.attack.online. travel.sent.every.process.software.other.I.arranging.system.this. the.an.UPC. not.myriad.system. conditions.In.center. may.to.customers.lower. the.center.. process.call.call. effectively. using.reverse. business.work.Although.expenses.receiving.by. may.system’s. situations. as. In. teams.mistakes.These.reasons.accomplished?.. discussed.customer.work.agents.to.the.process..

operational.an. assigning. executive.performance. of.. directly.members. a.because.workflows.can.team.system.deployment’s. essage.We. objectives.in..in.in. that.made.by.and.methods.systems.that. organizations.Kaizen.many.as.metrics. However.of.the.regard.need. reason. should. customer.(NVA).organizational.been.enable.using.is.are.work.. create. steering.level. reward.people. requirements. their.subsequent.improvement.be.book.metrics. in.strengths.this.successful.unnecessary.the.resources.Sigma.facilitates. these.. Lean..does.schedule.project. and.time.with.where.has.financial.baseline.We.to.a.their. satisfying.executive.cycle.metrics.In. as.to.deployment. Lean.Six.there. the.consistent.these.improves.In.from.deployment.successful.to..the.engagement. and.process..team.deployment. well. an.Financial.such..key.. very. how.a.during. and. business.to.organizational. analysis..the.quality.organization.show. For.a.from. elimination.a. organization. asked. teams.several. analytical.has.chapters. process.process..work.and.will.are.to.and.steering. develop.tools. this. is.later.process. rocess. they.the..created. Implement Performance Measurements Unless.activities.understand.operations.tasks. chapters. performance.prior. metric..of.process. key.up.metrics. Six.initial.Once. contrary.of. are..their.properly..understand.track.system.attributes.must.teams.tasks.based.workflow.project.trained.non-value-adding.recognition.Lean.on.higher-level.visibility. required. is. deployment. e .metrics.detail.team.important.After. that.organizations.. part.increase.improvement.of.its.process.eliminated.to.to.team.to.is....of. lower-level.fact..by.reinforce.team.to.should...Strategy Alignment  ◾  29 Deploy Lean Six Sigma Teams Problem-solving.it.a.discuss.identify.formation. to. addition.simplification.or. m . projects.of.imply.context. organization.be. Sigma.that.key.charter.will.provides. to. Create Value Stream Maps One.important. .their.be.assessments.key.initiative. to. goals.true.deployment.operational.a.arbitrarily.to.a. Sigma..and. related.simplification.This.an.infrastructure.discuss.designed.Six. an.how.particular.years.an.these.measurement. committees. that.takes.a.throughout. are.of.. important.However.front. concepts. is.its.by. goals.of. system.shown. part.to.concepts.dashboards.cost. important..not.operations. develop. Lean. to. of.a.create.major.Six. specially.be. objectives.drive.several.team.will. In.the.in. Communication. their. Lean. why. A.. Six.Sigma.selected.. integral.and.are.Kaizen. efforts.use.this.within. a.this.productivity.a.Six.On..or.Sigma.topics. to. improvements.. to.form. the.as.an.In.operational.and. p .plan.work.operational.created. prior. more..the.. be. in.committee.related.Lean.and..to. support..Sigma. This.areas. and. prior..related. it.a. and. have. Lean.charters.improvements.of.is.been. been.level.continuous.alignment.Integral.project.

strategic.been.if.work.from. within. to.There.difficult.systems..or.a.full.its..U-shaped. month-to-month.efficiently.demand.work.a.a.It.to.usually.can.time.improvement..every.U-shaped.eliminated.on.have. NVA.easy.layouts.integrates. and. to.was.goal.performed.example.efficient.process. in.reorganize.another.ensures.increase.process.the.operations.area.implementation.be.can.over.a.and.sense.cell.ways. consists. be..work.and.tasks. category..are.process. Implement Just-in-Time (JIT) A.is.standardized.way.work.to.work.Once.are.eliminated...This.30  ◾  Lean Six Sigma for the Office tool. differentiate.costs.can.be.several.system.laid.work.workflows.. other.analyze.lower.as.work.to.as.. using.yield.services.example.result.tasks.in.they.chapters.in. NVA.organization’s.organization.VSM.more.process.operations.Sigma.requires.a. as.also.cells.may..non-value-adding.out. (BVA).cycle.because. from.standardization.the.process.be..later. stream.used.document.a.their.Estimates.simplified..within.when.and..of.can.constraints.cell.However.times.is.business.demand.been.a.Sigma.an.As.non-essential.by.as. and.In.within.a.minimum..be.processes.technology.layouts. has.organized.at.that.time. NVA.The.from.due.workers.materials. Kaizen. value-adding.As.its..demand.third.an.operations.of. . worker.from.staffing.to.lay.these.has.some..operational. of.each.As.to.cell.the. that.spatially.minimize.be. shows. and.value.to.quantified. But.type.within.to..discrete.been. simplified. relationships. operations..BVA.than. work. value.products.earlier. (VA). lower..it. level.maximum...reduces. organizational.the.medium-volume.it.mentioned.station. operations.standardize.. oriented.workflows.may.levels.is.part.of. cannot.considered.make.of. and. Eliminate Unnecessary Operations It.its.an.pattern.facility’s.In.process.efficient.facilities.description.allowable.their.implemented.design.simplifications.to. noncore..cost.linear.tasks.variation.Six.will.any.all.should.environments.make. helps. methodologies.of.a. operational.be.methods.for.and.called.once.operational.either.overall.work.also.. its.than.maximum.switch.process.map.that.because.work.of.requirements. goals. employees.because.are.flow.cell.operational. at.For.operations. operational.manufacturing.be.is.work.to.operations.yields.regulatory.be.process. improvement.must. other.a.approximately.more.cycle.discussed.to. important.organization. This.shown.others.fluctuates.to.eliminate.workflows. and. level.example.This.specific. adding.assign...operations.an. over.time..Lean.value.eliminate.one.of. tasks.process.activities).of.a.(excluding.workflow.a.variation..are.low-volume.a.A.with. Six. other.time. objectives.work.also. a.are.markets...workflow.process...or.a. Lean.design.work..different.which.to.work.teams.same.out.enables.improves.it. the.category.a. such.and. or.Standardization.eliminated..(VSM).process.is..well. contrast.an.for.operations.work.

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in.simple.several.flow.An..often.of.people. supply.environments.integrated.cards.procedures.in.objects.that. mistake-proofing.. improvement. was.a... systems. .and.be. be.materials. methodologies. A.physical.that. from.but.describe.this.drives.prone.to. systems. are.their.move.tools. similarities.perform.important. these. process. global.are.is.discuss.parts.the.will.work..associated.methods.shown.are.to.as.process.improvements.the.workflow.. information.methodology.chains. or.that.this.and. on.of..employed.on.requires. specific.will.information. it.in.are.5.uninterrupted. workflows. results.that.by. technologies. Summary Today’s. the.be. three.or.reside.newly. work.is. from.quality.and. demand. are.Lean. use.highly.concept.automated.in.cards.how.the.the.service.lower.book..chain.a.mixture.created.operations..operations. Continuously Update Process Technologies Information.be. these.this.our.the.of.workflows.3.as.scheduling... the.time. related.to. within.cost. that. systems. be.systems.of. Regardless.balance.IT.of.be. automated.a.is.a.. external.are.and.requires. of.information.will. in. use..remaining.of.trained.major. the.It.and.The.of. tools. shown.process.and.to. the.rapid.system.these.Kanban.1.manual.and.it.the.of.important.application..unison. another.error. highly.a.without.Six.operation.is.discussed.consultants. improvement.from.tasks.between.and.types.will.increase.a. deployed.process.systems.or. three.This.materials.more. of.cycle.tools..rules.should.activities.manual.process.simpler.we. office.in.that..move.or.the.system.complicated.improved.status.they.using.and. that. process.complexity. can.process.are. to.This.an..many.discussion.. collect.32  ◾  Lean Six Sigma for the Office Implement Visual Controls and Pull Systems Controlling.integral. Table.a.of..that. system.breakdowns.This.interruption.updated.systems.supply.Lean.imbedded. chains. eliminated.within.operations.used.of.is. similar.Lean.efficiency. based.Lean.process.to. Another. some.Later.within.designed.The.focus.and.of. and.understand.1.how.. and.developed.flow. environments. in.between.through...or.In.service.to..objects.detail.of.the.combined.electronic.exact. differences.Kaizen. analytical.important.efficiency.discussion.time.that.in. comparison.office.improvement. using. pull.within.operations.employees.IT.combination.process.through.tasks. shown. between.technology.methodologies.and. It.over. of..Sigma.to.book.are.Kaizen.all. implement.situations. At.known.of. The. important.making. signal.in. may.supply.are.deployment.the.this.global.Six.events.mechanics.their. methods.it.workflow.signal.also.point.process. to.book.and. methodologies.one. focus.events.simply.. visual.up. technologies. and.within.information.complex.platforms.and.Sigma. to.. a.of. Pull. Six..that. tools.materials.will.global.Chapters..Sigma.maximize.should. was.the.organization.

Lean Six Sigma for supply chain management.initiative.Brent.In.Harper.K.. which..reduce..Business.. Volkmann..to.. with. Business.Free..improve.Addison-Wesley.all.In.system.New.productivity..deployment.Giroux.the..to. volume. ———.shareholder.Straus.Sigma. E.Blur—The speed of change in the connected economy..Sellers.C. Michael...Press. roduct..Measures of manufacturing excellence...Hall..Cliffs.deployment.Harvard.New..W. Charles.summary. John.in. Jae.Davis..Shim. strategic.Siegel.organization. with. Harvard.Tully.L.Six.Peter.projects.the.work.Press. Thomas.The quest for value.Press. 2002.Boston:.selection.Friedman.and.viewpoint.Farrar.of.Six.an. p .Boston:. 2nd. a.and...School.The value imperative—Managing superior shareholder returns.a. goals.Lean.methods.part.mentioned.Donovan.tools.. and.Business. Lean. objectives.York:. and.E.a...Bennett..New.ed.As..ed. Operational excellence—Using Lean Six Sigma to translate customer value through global supply chains... be. Suggested reading Larry.Stewart.Free.Sigma.Auerbach. part. John.takes..integral..Englewood.2007.Handbook of financial analysis.NY.Crown.successful.1990.Strategy Alignment  ◾  33 d ..York:.McGraw-Hill. Minneapolis....S.an.New.of.. an.Achieving excellence through customer service.example.Kontes..was... .are.Leading change.at..1996.tools.1997..The competitive advantage of nations.levels.is.. or... aligned.. Execution—The discipline of getting things done..1998.Press...teams..NY.that.Business.McGraw-Hill.improvement..2006. Robert.III..NY. be. 1996.within. forecasting and modeling..addition. Reading. Ram..methods.of.in.Joel.. In.. School.Martin.are. rationalized.concepts.a..and.New.Mankins..problem-solving.and.of..of...W. can. services.also.Christopher.sequence.G.Business. John.this. Thomas.an.Best.can. Boston:. strategies.of.New.1990.MA:..1996. James.York.Meyer.logical..York... The transformation imperative. from.several.value.Prentice.years. organization’s. Charan..Sigma.improvement.Tschohl.New. James.a.Porter..Kaplan. impact..1990. be.process. profitability. 2008...Six..2001.important.and.M.Publishing.1994.and..McTaggart..P...Kotter.Press. Burck..and...York.NJ:..It.to.Harvard.Richard. or..workflows.an..and. Stan. eployment. strategic..increase..Lean.continuous-improvement.used. School. must.The world is flat..The value enterprise—Strategies for building a value based organization...York:.complexity.Boston:.used.York:. G.Michael.work.Wortman..MN. Bossidy.

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might.31.000.the.000 (100%) Reduce Operating Expense for Work Area A (50%) Reduce Operating Expense for Work Area B (30%) Reduce Operating Expense for Work Area C (15%) Reduce Operating Expense for Work Area D (5%) =100% Reduce Overtime Expense (30%) Increase Machine Uptime % (20%) Reduce Scrap Expense (15%) Other Issues .this.time.the.projects.Kaizen. this.for.percent.Setup. work.project’s. one. work.$200.opportunity.represent. a.can.000..annualized.over.reduce.of.issues.total.written.Six.year.$50.to..overtime.. Project Objective: Reduce setup time by 50% within one week using a Kaizen event focused within work area A.000).project.December.a. Problems.time.are.machine.represented. roject.000).smaller.incidents. with.typically.50.of.may.executed. ($500.000.Facility.time.42  ◾  Lean Six Sigma for the Office Facility XYZ Reduce Operating Expense $1. within. by.percent.$1.000 for fiscal year ending December 31.the..operating.operating. availability. Problems with machine available in work area A represented 20% of the total XYZ facility expense or $200.000.problem.setup.facility.facility. work.expense.are.1 project identification—breaking down high-leel goals. ending. Kaizen.area.expense. areas.Lean. in.of.percent.all.longer..50... Figure 2.be.for.A.analysis. focused.represented. within.A.10.be.expenses.000.000.a.charter.four.represents.project’s.is. Setup time issues represented 50% of the machine availability incidents or 10% of the total XYZ facility operating expense.or.total.executed.A.as: Operating. Facility overtime expense for work area A represented 50% of the total facility operating expense across all four work areas ($500.percent.or.000. week.save.expense.that.of.facility.across.over.XYZ. event. 50.The.the. area.Sigma.work. XYZ..to. .operating.in.expense. p .20.Sigma.availability.point. and.statement.XYZ. A.days.several.or..the. using.for. of. machine.a.Six.facility.project.for.period.area.objective.this..an. (10%) Reduce Rework Expense (5%) =50% =30% Reduce Setup Time (10%) A Kaizen Project for Work Area A =10% Problem Statement: Operating expenses for facility XYZ are $1..total.fiscal.or.percent.Lean.

logistics.related.only.areas...words. using.improvement. can..total.. suppliers.service.VSM.organization.form.an.making.at..a.areas.of.project.a. and.we.can. operations. set. have.to.level.human. areas.a.. composed. a.process.are.there.because.or.is.of. and. an. of. operational.may.There.good..process.families.gaps.to..system.. a.resources.process.higher.operations.of. of. such.. identify.managers.might.engineering. include.that.shown.and.several. Examples.product. projects.including.is.accounts.waste.it.. conducting.Common. that.applicants.a.system.hires.create.of. aligned. workflow. work.level.workflows.level..all.functions.an. lower-level.resources.between. An.design. some.team.itself.functions.lower-level.operation. process. also.. but.various.an.major.team.that.actual. senior..within.These. down.of.financial.are.sales.analysis.. project.operations.performance.operations.. project.stream.common.workflows.one.available. hire.several.Table.workflows.suppliers. HR.include.as.to.operations.or.applicants.high.are.and.a.can.in.In.additional.paid.Project Identification  ◾  43 The. work.Operations. financial.expense. are.that..Within.actionable. project identification—process Analysis In.projects.provide..to.create.contains..different..projects.have.there.usually.. analyzing.are.but.a. direct.improvement.includes.interviews. which.other.set.it. are..chain.a. and.. setting.such.A.to.process. broken.tasks.to.various. several.discuss.workflows.individual.customers. invoices.of.expense.parallel.expenditure. an.As. metrics.a.workflow. and.large.and.for..describes.process..Chapter.to. objectives.many..hierarchal.us.of.job.at.or.which. up.by. of.operating. to.mapped..process.analyzed..work.conducted.an.mapped.by.. a.process. the.1.organization.to.necessary.hiring.example.required. workflow.a.human.way.be. work.At..word.does.and.In.of..process. s .is. operation.be.external.basis.2.them. paying.that.or.process.. as. to.new. identify.produce.include.for.caution.invoices..offers.a.operations.and. well-defined.3.discrete.at.customers.not. paid. into..show.having. Organizations. functions.internal.the.these..of. is.and.in. network.levels.point. level. tasks.activities. can.process.and.flow-down.entities. operations.organizational. audits.a. a.workflows. major.gathering...between.. operational.finance.. However. several.job.lower. charters.ensure.and.selection.imply.may.improvement. flow.. to. to.methodology. actually.setting. a.their.. management’s. work.at.organizations.can.the.tasks..or. a.not.analyzed..are. CTQ.levels.may. ystem.a.serial.result.(HR). potential.. a. payable.workflows.subsystem.stakeholders.similar.include. addition. be.and.analyses.of. work. accounting.be. workflows.an.people...Also. task.In.a.These.procurement.better. is..waste.value. tasks.A.. and.other. invoices. analysis.portion.a.organizational.will.workflow..application.requisitions. .their. with.smaller. goals.as.necessary. element.This.include.employee.interrelationships.mapping. be.comparing.workflows.as.and.supply..An.CTQ.well.workflows..up.workflows.job.set. a.of.. percentage. as.specific..of.candidate. major. systems.consists. by.integrated.marketing.interconnected.also...functional.to..several.a. analysis.toward.be.services. of.level.hiring.Each.products. process.

necessary..task.the.combination. A set of work tasks within a process workflow that is used to execute a well defined function.an.with.An. Process Workflow III. by.the.task.a.basic.example.smallest. Production. Logistics. also..Figure. is.As.motions..applicants.Lean.a. a.several. fully. rate.broken.shows. that. production.of.are. production.tools. II.the.the.single.an. of. to.Figure.mapping. a.. relative.payable.available. with.the.job. analyze.work. an.Finally.44  ◾  Lean Six Sigma for the Office table 2..be.value. Operation A discrete set of operations designed to provide a product or service..form. system’s..concept. bottleneck. Design Engineering.to. of.2. of.. to. Finance. production. Lean. level. System Definition Several process workflows making up an organization or a larger supply chain.complete.job.and. operations.Work.be.percentage.2. a. is.work. addition. critical.related. Supplier. Examples Sales & Marketing.measures.motions. goal.associated.deployments. the.. measured. per. at.task. a.add.. unit.activities.second.performance. quantification.of. to.interview.respect.The.example.and. lean. rate.used.not.elements. system’s. if.single. l ..similar.compare.. Procurement. controls. used. key.a.eanness.that.an.completion. requisitions.elements.. operational.in.in.necessary. . larger. metrics.accounts.shown.with. operational.an.2. important.at.of. and management. will. system.example..operations. Work Element up. The most basic motion associated with a work task including manual and equipment operations used in combination to execute a single work task.. be.most.higher-level.important.. work.for. of.in.a.breakdown..levels. A.. metrics. system. be. output. measure. across.operations. system’s. to. resource.execute.including.to.to.analytical.to. all. However. The.types.work. the.applicant. operational.do.process.can. A combination of work elements used to execute a single work task.manual.used. IV. various.. to. it. An accounts payable clerk completing one of several forms.of. measure. behind. rate.value-adding. as. activities. work. a.to. system’s. a.As. the.are. is.equipment. a. balanced. non-value-adding. In. Work Task V.would. would. then. become.. time. Accounting workflow provides invoicing. eliminating. The motions required to execute a work task such as completing an accounts payable form. A single accounts payable clerk checking a few major customers.into. and Customers. rate.motions. deployment.related..2. a.the.1 Analytical leels of process Analysis Analytical Level I. tracking.These. work.metric.Lean. throughput. A. is.to. time.

discussed.project.rework.others.how..industry.with.metrics.well.to.business..These.institutions.These.specific. typical project examples The.as.may.vary.major..2.benefits. and.finance.functions.analyze...an.themes.calculate.improvement. organizations.within.shown.2 project identification—process analysis.as.by.. improve. disparate. these.functions.shows.. operations.created.governments.Project Identification  ◾  45 Process Input Boundary Process Output Boundary Generic Process Workflow–Current State D1 A B C D2 E F G Business Metric Financial Metric Project Metric Compensating Metric • VA/NVA/BVA • Production rate (units/minute) • Scrap % • Rework % • Downtime % • Capacity (units/minute) • Setup time (minutes) • Inventory (units) • Floor area Figure 2.of. provide.include.educational.efficiencies.in.within. S .common..2.are.Chapter.also.several.provide.to.associated.as.metrics.types.effectiveness.organizations..marketing..retail.industry.examples.usually.institutions.process.these.even..vary... Projects.2.manufacturing.Table.product.Figure.several.organizational.there.projects.by.an.and.for.metrics.Lean.other.rules.that.hospitals.2.and.in.3...2. ubsequent.or.2.In..the.organizations.will.diverse.Figure. financial..an.routinely.These.Lean.examples.function. to.as.include.to.are. resources. functions. specific..to.of..industry. types..be.well.detail.industry.in.organization. human.design. within. procurement.Lean... service..of..and.will.these. .functions..within.regularity.shown.have.are.The.projects.compliance.organizations..in.chapters.sales..

metric.this..procurement.accuracy.in.46  ◾  Lean Six Sigma for the Office inspection.organizational.levels.as. organization.unique.a.other.management..projects.customer.non-value-adding.design. create..products.by.projects.customers.increasing. warranty.investment.process.rates.on.defined.operational.improvements.of.reducing.into.to..of.may. some.time. sales..it.improving.design.. revenue.reducing.others. of.costs.asset. are.the.there. process. employee.new.times. which.define.service.list. by.to..of.projects.increasing.Operational.improve..systems. and. example.reducing. number.success..(NVA). as..and.errors. or.(HR)..reducing.3.Another..and. increase. comparing.exists..yields..reducing. method. described.Table.at.number.. constant..increasing. rates. common.time.include.quantified..a. improving.engineering.Lean.. reducing. .enables.also.basic.improving.of.to.person.shows..lead...training.function.numbers.. be. An.performance.sales. created. reducing.job..found.facilities.satisfaction.market.reducing.. define.shown.on-time.employee.the.numerous.improvement.within. can. These. an.projects.projects. basis.include.improving. reducing.floor. and. metrics.may.within.channel.margin.improving.required.perspectives.force. a.of.cash.increasing.metric.created.and.particular.. projects.sales. in.improving.schedule.of.controlled..marketing. everal.include.and.product.financial.projects.human.the. improving.and.associated. we.availability.to.utilization. the.returned.may..This.four.Typical.delivery.supplier.. satisfaction..ratios.cash.scrap.the.can.brand. such. organization’s.delivery.This.as.increasing.In.levels.margin. production.data. operational..2.are.work. of. costs.be. improvement. investments.awareness.rates. be.operations.deployments.operations.relative.include.efficiency.financial.retention. Key metric definitions A..within.organization.operations.several.by.increasing.that. a. percentage. productivity.forecasting..the.at. include.force. may..organization’s. compensating. lost-time.Sigma. or..the. costs.reducing.improving.sales.Projects.include.sales..improve.productivity.a.turns.employee.flow.audits.reducing.Specific.book. is.effectiveness.attainment.new. improving.latter.several.simplifying.are. percentages.pricing. in.improving. systems. lower-level..the. and..such.increasing.and.and.. financial.Six. reducing.or..reducing. gross..be.standard. process. be. and.reducing... s .increasing.can.on-time.or.increasing. improving.the.new-employee. potential.rate. adjustment.compare. used.the.performance. are. rate. from..resources.. accident.in.within.a. across. would..markets. metric.from.profitability.and.inventory.include.high-level.This.to. business.category.. equipment. aggregated.hand.standard. as.at... plant. metrics.a.setup. and. Business.. design.rework..warranty.. an.penetration. to..function.design.the..Specific.. time.function.and. an. available..volume-adjusted.error.incident. business.of. yield.sales. to.goods.. across.Financial.expense.hiring. metrics..increasing.effectiveness.a.system.and.a. metrics.. to.their.of.new.cycle. lead.procurement.On.an.facilities.other. project.projects..is.of.we.ratios.with.sales.area.higher-level.inventory.product.finance.gross. Projects.. and..other. specific. usually.per..optimizing.the. measure.the.level.include.metrics.a.but.

◾ Improve forecasting accuracy. ◾ Reduce lost time accident rates. rework. ◾ Eliminate NVA operations within marketing. ◾ Increase yield. ◾ Reduce floor area required by operations. ◾ Improve on-time delivery.2 typical project examples Sales ◾ Eliminate NVA operations within product design. ◾ Increase sales success rate. ◾ Reduce standard costs associated with operations.table 2. ◾ Increase employee retention. ◾ Reduce standard costs controlled by design.e. ◾ Increase the number of new products. ◾ Optimize pricing. inspection. audits. ◾ Reduce floor area required by inventory. ◾ Increase inventory turns. ◾ Simplify the new employee hiring process. ◾ Increase sales in new markets. ◾ Improve employee satisfaction. ◾ Reduce design cycle time. ◾ Improve sales force productivity. ◾ Improve cash flow. ◾ Reduce warranty expense. ◾ Increase market penetration. ◾ Improve sales force effectiveness. ◾ Increase system availability. and unnecessary reviews. ◾ Reduce inventory investment. ◾ Reduce standard cost controlled by procurement. Finance Marketing Product Design Procurement Human  Resources Operations ◾ Eliminate NVA operations within finance i. ◾ Improve schedule attainment. ◾ Increase the number of new customers. ◾ Improve the efficiency of employee training. ◾ Improve productivity. ◾ Improve brand awareness. ◾ Reduce the incident rate of data errors. ◾ Eliminate NVA operations within human resources. ◾ Eliminate NVA operations within procurement. ◾ Eliminate NVA operations within sales.. ◾ Improve supply on-time delivery. ◾ Improve channel gross margin. ◾ Increase customer profitability. ◾ Eliminate NVA operations within operations. ◾ Improve customer satisfaction. Project Identification  ◾  47 . ◾ Improve net promoter score (NPS). ◾ Reduce job setup time. ◾ Reduce operation lead-time. ◾ Reduce scrap and rework. ◾ Reduce returned goods. ◾ Improve gross margin per customer. ◾ Reduce design errors.

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Inventory investment in dollars is also reduced as turns increase.as.metrics.levels.expenses.reduction.various. dollars.would.and.increase.in.but. etc.example.production. to.as.we.in.each..on.due. represented in monetary units or ratios.want.well.organization.retention.customers.to.the. quality or supplier issues that would change the project metric to one of these lower-level operational metrics.. retention.improvements.a.and.project.3 Key metric definitions Metric Type Business Definition Metrics that can be linearly applied throughout an organization.employee.of.examples.and.schedules. and similar common units of measurement that can be linearly allocated and aggregated throughout an organization such as asset utilization efficiencies.not. turns while maintaining customer line fill rates.with. expenses.used.sales.increased.satisfaction.balanced.external.project’s.compensating.customers. Customer satisfaction and retention.of.operational.profit.a.lose.. revenue.want.a.and. other.ensure. Project Compensating metrics. Metrics that are used to provide insight into the impact of a project on the total system and typically show the impact on internal and external customers.satisfaction.not.are.the.to. Example Percentages.area.would.we.organizational.an.to. customer.to. employee satisfaction and retention..Project Identification  ◾  49 table 2.customer.Additional.of.due.As.including.increasing.. cash flow.maintaining. percentage lost time.not.levels.to... Financial Metrics that have a Dollars.sales.conflicting..another. monetary basis and are revenues.Also. .margin. financial metrics to root The project becomes reducing lead-time to improve inventory causes. increase.area.stakeholders. inventory turns.goals.one.relative.other.cost.an.include.maintaining.second.but.are.objectives. Metrics that are used at a If the business metric is increasing lower operational level inventory turns that are found to to tie the business and be impacted by lead-time.for. Lead-time could also be found to be impacted by large lot sizes.lose.

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.goals.close. most.projects.gaps.performance.. of.through.organization’s.can.643 Comments Team Information Team Leader: Team Members: Name Role Expertise % Time Figure 2. to. is.643 $ 5.identified.an.000 $ 56.resource.the.of. important.shown.prioritize.There.performance. that.with.gaps. productivity.6 K Project Objective Business Metric Project Metric % Invoice Amount per Category Days Late (>30 Days) Financial Metric Other Metrics Lost Interest Expense TBD Financial Summary – Initial Projected Savings P&L One-time cost savings Project Costs Net Benefit Soft Savings Estimated Capital Operation Cost Sales SG & A Expense $ – $ – $ Depreciation – – $ Interest Expense @ 10% Total P & L $ 61.identifying.in.several.000 $ 5.been.analysis. $10 million between 61 and 90 days and $5 Million over 90 days.be. also.are.common.minimum.to. over.6 K ($15 MM) *(15 Days/365 Days)*10% = $61..strategic.to.643 $ 56.Some. improvements.prior.of.3 project charter example.and.Figure.to.objectives. projects.These.include.used. ensure.. Project Duration 5 Days Project Complexity Resources Probability of Success Medium Attached High e average cycle time between provision of services and receipt of payment averages 60 days with a range between 30 and 90 days (30 our payment terms).have.projects.strategies.are.above.expenditure.that. prioritizing projects Prioritization.643 $ 61.4.and.are. e result is lost interest expense from money that should be collected no later than 30 days from invoicing.an.Project Identification  ◾  51 Administrative Information Project Name Chartering Organization Champion Project Start Problem Statement Reduce Cycle Time in Accounts Receivable (A/R) Process Accounting Joe July Est.strategic.their. .2.deployment.that. e average A/R balance is $15 million between 31 and 60 days.obtained.already. To reduce the accounts receivable cycle time by 50% in the 31– 60 (15 days) to save $61.

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performance.deployments.process. operational.accomplished.performance.CTQ.visualize. value..root.into.as.operational.as.ensure.an.will.In.. because. operational..different.of.methods.identified.many.and. Metrics.forms.times.organization’s.there. characterized.assessment.addition. improvement.is.Lean.next.into. toolsets.responsibilities.Project Identification  ◾  55 several.and.Six. a.project.then.financial.process.analysis.a. Sigma.As.metric. of.are.and. was. identify.is.elimination.broken..of.are.how.of.and.an.Sigma.may.well.are.vehicle. Summary Improving.its.operational. communication.quantified.identify.cycle. analysis. Project. of.of..with.and.rapid.low.can.people.as. execution.an.organization. at. well...actionable.be. of. lower. prioritize.organization.workflows. workflows. and. performance. “leaned.a.vary.book.element.using.and.levels.an.continuing..key.a.showed.key.2.These.are.the.to.an.and.be. Figure.than.will.our.charter.prioritized. a.resources.a.context.of.charters.identify.to.additional.project.Sigma.into.Six.incorporated.strategy.out.and.a.higher.organizational.of.function.its.be.that.objectives.of.. content.projects.project. goals.organization.alignment. requires. can.. Assessments.the.converted. describe.that.risks.contrast.a.1.ensure.objectives.deployment.depending.analysis.continuous.”.improvement.this.by.in.projects.that. industry. by.either.problem.. also.Six.important.shows.its.A. and.their.as.prioritization. systems.This.correct.reports. projects. create.down. used.teams. to.projects. that.the.factors.improvement.specific. mentioned. well.Kaizen. of.the.A...selection.Lean. to.projects.down.Lean.to.using.projects.of.this. measure.project.of.and.to.several. are.characterized.useful. also.benefits.the.time.quality.Lean. Lean.be.Figure.the.2.projects.impact. the.anticipated..is.and.execute. be.have.and.considerations.In.charters.various.In.competitive.important.to.eliminate.types.Lean.used. to.the. .improvement.a..discussion.an.and.the.analysis.flow.and.organization’s.and.is.of. several.prioritization.these.of.critical-to-quality.or. expected.deployed.high-level.waste. used.identify.process.been.on.the.charters.other.also. be.gaps.project. and.Sigma.events.. benefits.into.of..important.their.stakeholders.flow. assignment. operational.of.actionable.A. chapters.operational.The.important.systems. used. Lean.higher.business.down.be.Lean. lower.project’s.Six.in.as. related.project.for.teams. process.the. metrics.system.in.of.levels.and. projects..causes. several.to.(CTQ).it.in..organizational.performance.cost. can..charter..projects.requirements.have.. conducted.a.at. and. project.also.as.goals.Sigma. projects. Six.showed.may.that. An. bringing.focus.through.result.can.may.an.not.4. It.was.is.together.4.this.2. from.deployment.by.we.are.the. high.functions.define.to.be..resources.Roles. financial.resource.to.an.or.process.way.are.aligned.can.that.is.financial. process. information.as.aspect.an.to.of..workflows.other. a.shown.by.goals.Figure.Prioritization.that. be. can..is. having.an.within.available.metrics. organizational.

Kent.Business..F.2006.Engineering.Center.Project management: A systems approach to planning...Wiley.New..8.2008.Auerbach..York:.York:.Operational excellence—Using Lean Six Sigma to translate customer value through global supply chains.and. James.P.ed. New.Vol.Management.York:.Wiley.Project portfolio management tools and techniques.The selection process for capital projects.J.Lang.....N..New.Project management maturity model..and.York:..Management.. McGraw-Hill.56  ◾  Lean Six Sigma for the Office Suggested reading J. W..Martino. .Auerbach. Practices.Merino.Wiley.2005....1993.Wiley.and. and controlling.2nd.Levin. York:.New.Series.Ginger.New.Wiley. Harold.. Joseph.York:.New..Crawford.. scheduling.Engineering.Kerzner. Parviz..Technology.ed. New.in. 2007.2007..Martin.W. James.1995. Martin.Publishing..in...9th.Series.Rad.York:.Research and development project selection....IIL.... Lean Six Sigma for supply chain management.and.Technology..for. Series....Donald. Hans.

product..process. performance.strains.minus.basic.. supplier.an. demonstrate. the. As.operation.as. waste.100. successfully.the.as.3.system.produces.in.Other. is. marketing..concepts.due.and.take. and. system’s.workflows.seven. that.discuss... overproduction. been.capacity. an.a. to.discussion. and..we.will.process.prior. is.as.. applied.3. waste.operations.this.is.the. Lean. forms.The.discussion. than.shown.office.utilized.product. of.lack.Chapter 3 lean Six Sigma Basics oeriew In.service.context.new.Figure.In.results.of..unexpected.Actual.within.minus.Table.to. 57 .we.poor. use.but.and. first.follow.as.workflows.Lean.an..other. introduce.in.. Lean.capacity..in.design.orders.per.expected..and.as..include.things. new.available. to. demand.a. process.is.in.capacity.process..shown.purchase.and. a .then.to.analogues.service. shows.1.a.will.we..for.losses.. these.found.breakdowns. concepts..day. if. demand..process. actual..overproduced.of. dditional.These.discussion.waste. management. the.beginning. Our.office.allowances.organizations.losses.lack.most.Overproduction.will. normal..factors.capacity..a.. rate.is.sequence. implement.we.breaks.which.process.. is..occurrence.production.available.variable.it.forms.discuss.capacity.this. to.six.have.orders.. rate.financial. from.is. standardization. development.a.our.operations..per.accounts.process. how.of. research. common. that. manufacturing.receivable.100.procurement. Figure.will.on.chapter.a.But.Lean.purchase. to.tools.poor. have.exacerbate.at.purchase.design..well. the.include.methods. seven.. level.training.These.of.methods.classic.demand.calculated.procedures.the.. higher.employee.capacity.breakdowns. The.common.Sigma.of. classic. goal.to.1.3.Six. in.1.and. the.such.of.orders.process.Available. operations.calculated. the..develop.perspective.forecasting. example.day.when. workflows.

Mistake proofing 7.end. controls.d. Eliminate unnecessary operations within workflows 7.an. material.summary. Create value stream maps (VSMs) of major workflows 6.its.process.g.for. Level demand 7.in.this. Create robust product and process designs—reduce complexity 3.This.to.be.this.idea.changes.resource..in.operation. Mixed-model scheduling 8.show.be.form.h..b.j.capacity. High quality 7. Continually update process technologies To.in.will. will. that.linking.pull.performed.if.a.a.near.job.if. Reduce lot sizes 7. Understand the voice of the customer (VOC) 2.a.. A.an.actually. advance..1.a.the.production.a.d.degrade.external. occurring.available. Implement just-in-time (JIT) systems—eliminate waste 7. Performance measurements 5.reduces.operations.then.require.bad..concepts. Balance material flow 7.f. resource. in.labor.bottleneck.. Reorganize physical configurations 7. Implement visual control and pull systems—Kanban 10.waste.like.chapter.. Reduce setup time 7.not.a.of.may.time.and.will.its.equipment.is.number.to.casual.a.observer. systems.We. Supplier networks and support 9.demand.at.way.. Overproduction.a.higher.called.the. that. Deploy Lean Six Sigma teams 4.that.using. with.created.are.orders.external. In.of.we...waiting.because.turn.level. Also.scheduling.e.people.may.capacity.linked. the. information.This. 5S and standardized work 7.idle.available.takt. through.especially.2.because.prevent.second.process.seem.by.1.is.and.d.setups..may.the. ..purchase.operated.or.i.system.c.discussed. be.find..capacity. Link operations 7.to.customer.costs.58  ◾  Lean Six Sigma for the Office table 3.people.mistakes.if.as.does. Bottleneck management 7.is. flow. a...may.rework.waiting. but.is.is.effective. complicated... Total preventive maintenance 7.available.1 ten Key Steps to implementing a lean System 1.overproduction.bottleneck.demand. bottleneck.system.is.increases.In. or.system’s... Transfer batches 7. require.j.the. of.These. rework.the.. made.be.rate-based.

this. system.movements.as.be..dependent..invested.used..In. lost.because. the.of.because. require.a. hour.materials..then.materials.a.must.for. for.bottleneck. waiting.not.to.bottleneck.into.who.materials.summary.a.starved.folder.is. at.lost.work.from.and.This.of.idle. and.. costly.bottleneck’s.may.. In. environment. meeting.and. or.system.moving.make. the.for. or.in.the. on.words. associated.at.is.be...are.another. idle.waste. search.next.overtime. is.are.or.throughput.any.each.lost.information. movements.waiting.stored.bottleneck..recovered. materials. to. has. for.each.inventory.system’s. unnecessary. permanently.decrease.has.rate.that.loses.path.damaged.time.it.is.unless.of. two.a.time.directly. thought.the.1 Jit philosophy—the seen major types of process waste.high.materials. because.not.system..resource.time.a. must.be. and.other.unnecessary. from.. through.. increase. information.over.there. move.time.can..period. information.production.conversions. another.in.lost. units.lead.either.a. The. are. work.Because.. excessive.is.to.for.. for.on.of.is.or.a.is.work.and.a.process.a.is. capacity.levels. with. this.. 100.up... of.. is. one.waiting.or.that.. resources. to.unnecessary.units.left.form.lost. depositories.of.increased.a.dollars.operation. Another.where.system.system’s. other.is. the. an. production.the. usually.In.material..is.200..to.As. information.operation.other.revenues.of.to.critical.of.are.its.a.at.degree.proportional.and.process.cannot.its.context.become.time. loss.located. hours.overall. materials.people.Lean Six Sigma Basics  ◾  59 Waste from Overproduction Waste from Product Defects Waste of Waiting Time Waste of Motion Transportation Waste Processing Waste Inventory Waste Figure 3.a. people.seen.rooms.if.process. ..and. and.is.productivity. Also.system’s.labor. time.a.is.or. the.negative.Inventory.. with.of.is.information. materials. location. problem.third. of.monetary.impact.they.of. resource.an...waiting.production.transportation.transport.a. per.time.or.This..lost.and.when.increased.direct.other.on. transport. transport. sharepoints.can.information.once.in.be.sales. production..search.it.proportion.lost. If.lead.In.this.when.is. to.manufacturing.over. are. office.rate. other.a.In.one.is.can.people.a.unnecessary. then.This.forms. problematic.within. This.to..continuously.information..interact.of.example.

excess. its.waste.to.is..60  ◾  Lean Six Sigma for the Office later.downstream.should.within.and. a.because.or.to. motion. created.on.be.levels.major. is.in.include.be.standardized. up..needed..is. service. work.information.it. .of. inventory.to.resulting. materialize.products.reasons.to. either.resource.policies..an.excess.location.down.due..an.system’s.process.shipped.from.suitable.when.to.but.is..flow. or.Inventory.requires.can..that.to.motion.cannot.inventory.created.no.break. is.a.procedures.not.the..capacity. excess.products.relative.breakdowns. within.to.show.eventually. demand. situations.that. discovered..preferences. increasing..labor.Processing.map.inventory. or. method.advance.time.the. This. produces.decreases.problem.services. at.movements.are.it..when.relative.when.and.produced.not.that.when.the..in.the.demand.combination.system.can..to.of.and.Operational.service.schedule.waste. result. using.poor.customer.of.fifth.current. these. will.of.are.to.in.using.of.or.demand.upstream. independent.These.and. that.processing.a.one.production.exacerbated.In. from.... a.demand. In.and.the.best.. too. (WIP)..of.inventory.waste.standard. and.when.too.will...the.or. Any.after.occurs.the..are.people.work.inventory.have. or. words.by.a.machine.transportation.method.In.services.that.found.versions. analytical.technology.is.by.be.rate.with.. are.. product.and.their.occurs.for. studies.another.activities.are.linked.transported.for..advance.demand.sale.an. and.excess.identify.operational.work.due. In.how.form.or. operation. The.using.they.the.problems.to.but.work-in-process.when.is.changes.hired. available.may. much. external.breakdowns.external.displaced.or.and.perform.advance.examples.that. that.caused. process. high.disrupt.an. It.having.hides.to.demand..of.office. This.demand.cost. from.waste.inventory.tools.excess. method.type.in.is.machines.is. when.process.caused.used. pull.a..in. an.takt.customer.waste.as. activated.that. motion.method.product.materials.available.time.occur..months.standard.results. months.overproduces. of..printed.including.work. and.and.a.or.process. m .excess.a.waste.service. standard.example.occurs..to.are.the.services.is.. aterials.information.people.in.a.effectively.expected.in.operation.arbitrary.inventory.of..demand..to.we.person..space.the.. is.that. Also.several.rate. deviation.external.is.A.marketing.it.must.procedures..work...its..is.of.external. be.process.materials.customer. inventory..build.inventory.redundant.of. in.The.products. by.Obsolete.higher.based.of.signals.was. production.to.takes. the. will.waste.were.resource.such... change.way.be.performed. problems.to. A. similar.protected. only.chapters.literature. customers.is. obsolete. or.of..variation. little. patterns.previous.it.its.Obsolescence..These.materials.due.only.customer.of.also..not. should.promotional.inventory.targets. a.translated.or.As.years.be.levels. material.production.example..set.Another.discovery..non-value-adding. build.people..and.by.fourth..an.operation. Waste.when.a.design.of.utilized. materials.system’s. too.it. there.. tools.inventory.obsolete..years.is.operational.consists.if.signals.both.high.does.lead.waste. Inventory.of.customers.an.products.without.Processing.because.occur.changes.environment.fact.the. using. studies.inventory..management.unnecessary.operations.in..work.a.process.not. problems.usually.one.technology.also.employee.These.exceeds.This.cause. improvements.work.up.pull.sixth.flow.increases.produced. time.or.expediting.the. other. when.inventoried.or.

scrapped.methods.of. several.several.service. situations.non-value-adding.and.services. in.of.After.occurrence.most.phases..like.standard.remains.found.any.to.to.must.possible.similar.waste. and. occur.the. and.customer.control.more.satisfy. aligned. organizational. information.also.be.of. VOC.reanalyze.remain.a.improve.accessed..to.to.defects.production..methods.have.of..methods. Examples. and. call.or.a.redone... fact. Lean.caused.(NVA).Chapters.Defective.the.may.system.to. the.have.the.computer. The.terminology.work.call.without.situations. and. be. with..from.more.a. Lean...exist.uses. mathematical.will.available.sending. In.of.and.or.Lean Six Sigma Basics  ◾  61 may.motion.from.the..in..Unnecessary.of.Six.to.be. task.later.reworked.that. objectives..combinations.customers. process. flow.questions. should..Value-adding.screens. which. necessary. answer. are.required.in. for.extend.rework.standardized.but.be.well.process.to.phrases.form. information.perspective.6.others.eliminate.be. questions.we.are.product.ensure.situations. methods.root.. required.them. office...throughout. include. or..or.its.did.be.and.the.defects.time.information.standardized.not everyone responded to the e-mail. understanding.customer’s.search. as.rely..have. within.Defects.to.statistical. example. requires. away.as.materials. of.environments..chapters.same.process.of..easily.it. goals.position.a..initiatives.analysis.. proofed.movement.improvement.the.are..will.discuss.for.and.a.environments. improvement. The.common.then. the. which.office.for.(VOC).cause.of.or. are.over.mistakes. I. used.In..the. initiatives. information.types...Lean.called.a.more.the.and.five.scripts. as. provide.both. incoming.analyze.of. an..or.or.reship.set up a meeting twice.capacity.on.stable. some.or.after.analysis..work. work.Six.system’s.in.employee. center.time.tasks. a.These.activities.measure.defective.process.one. environment.components.its.employees.components.and.seven. Sigma.(NVA).defects.20.is.unnecessary.and.a.office..the.also. process.this. to.customer’s. Six.is.up..include.targeted. of.center.using. waste.uses.(VA).types.data.times.waste.job.and. fact.process.focused.minimize.. products.these. .work.process.work.information.it.if. online.identify..i.operations. the.seventh.will.There.eliminate.the.5.more.tools.occurs.of.help. in.to.improvement.necessitates.that.in.bring.cost.e.also. to. basis. major.made.. looking.other.and.and.of.to.to.more.either..reduce.rework.a..phases.common.agents.resend.to.to.when.times..lead. In..Process.mistakes.had.a. people.done.obtain..in. average.twice.or.non-value-adding.must.discussed.Mistakes..thrown.within.and. required. myriad. product.includes.mistake.time. improvement.than.An. understand the voice of the Customer (voC) Process.which. or.The.. analysis.not. call. well.voice. an.a.These.incorrect..also.simple. the.information.to.once.Sigma.as.evaluate.office.. time. on. Lean.fatigue.customer.terms.and.. several.the. these.span.process.do.the. programs.was.call again. activities. recall.Some.one.tools..operations. process.types.it.by.office. two.work. a.data.environments.. answer.in.having.They.answer. to. customer’s.Sigma.workflow..define..context.that. equipment.was.are.than. customer.of. in.

a. On.for.cost.get.be.performance.goes..will.really. are.product. Figure. needs.does.begins...makes.a..purchase.to. differentiate...process. their. expectations..that.Referring.brief.identified... incorporate.are..customer..time.important.good. foods.through.market. from..is.a..of.foods.needs. categorized. market.of. shows. and..enable. services.. into.of.3.of.2. and Others • Translate CTs into Specifications or “Ys” • Create Projects to Close Performance Gaps between the “Ys” and Their Targets • Identify the Toolset Necessary to Identify Root Causes Figure 3. and. and.methodically.He.customers.expected.again. hand.use. their.when.product.2.2 1. the.service.activities.example.to.at. need.As.Figure.Basic.or. voice of the customer (voC).cost. Critical to Cost (CTC).design.to. products.or. service.by.a. competitor.offer.This.the. which. Interviews. and.perhaps. meet.their.expectation.not.as.basic.Needs.Kano.the.special. and Other Methods • Identify Common VOC Themes • Translate VOC Themes into Critical to Delivery (CTD).some.customers.a.organization.are.developed. value. VOC.excited. the.external. Critical to Safety (CTS). by.will. .or. their. performance.she.product.market. and. and.excitement.to.quality. needs. to.cost. example. identify. a.attributes.include.an.if. interviewed.basis.may...lower.or.condition.process.available.bread.average.her.an.needs.an.summarization. As.interview.and.that.beverages. and.structured. person. services. products.attributes. segment.62  ◾  Lean Six Sigma for the Office • Market Research • Market Segmentation • Kano Needs • Value Elements • Collect Information Using Surveys.3.or..to. and.markets. analyze.available. values.or. another. identify.or.attribute.his.are. other. needs.this..food.by. one.an.. Critical to Quality (CTQ).basic.milk.along.to.common.Dr.a.if.are.set. that.in...dimensions.a.

improvements.by.in.industry.Classifying.sales.of.VOC.critical-to-cost.project. surveys.starting.discussing.good.attributes.similar.are. used.are..food.customer. take.to.are.aligned.are.free.how.their.Sigma..flow.databases.complicated.analyze.a.performance.and.the.voice.as.which.maximize..VOC.of.at.anticipated.process.have.before.interviewed.VOB.cash. to. customer.how.information.internal.VOB.customer..encountering..expect.or.quantified.. and..differentiate.customer.of.Six.characteristics. informational.need..by.visiting.who.relative.to.in.after. .close.experts.customer. as.. product.product..complaints.to.from.and.mailings.aligned.each.as.experience.be.by.using.goals.Kaizen. point.customers. have.price.with.collected.(CTD). can.business.well. of.In.did.to.customer. she. objectives. its.has.also.are.do..needs.be. questions.value. expectations.we. Common.products.service.identify.trade..of.Ys.team...observe.this. a.customers.balance.. the.will.customers.customers.the.when.Survey.services.information.a.information. collection.(VOB).Lean Six Sigma Basics  ◾  63 Customers.the.it..production. In...or. warranty..and.how.a..are..a.both. forms.critical-to-quality.customers.employee.during.actively.it.had. customers. Projects.competitor.events.analyze.is.Kano. wait. what.to.service.voice. using. how.in.interviews.created.specifications. approach.from.These.addition.can. service.VOC.groups..between.considering.delivery.performance..new. themes.their.. importance..a.as.the.including.not.. vary..increases..context.Ys.customized.customers.(CTS).metrics. holistic..a. process.five. properly.toolsets.function.expectations.addition.using.But.a.Internal..identified.market’s.purchase.a.internal.the. content.price.will.service.to.histories. well.or.or.reductions..information.its.is.be.into. more.these.market.elements.be.one.In.survey.management.in.services.enable.which.and.such..cost.should.their.improvement.several. in.margins.characteristic.or.requirements. An.themes.segment.performance. interviews.that. should.determine.root..identify. would. customers.to.time.or.value.new. and.well. or. processes.he.Value. many. will.and.to..critical-to-delivery.. These.the.profit.example.their.Kano.returned.as. needs.in..on.and.organizations.product.to.Initiative.set.products.of.value. market.and. improvement.needs.dimensions:. for. are.or. methods..is.critical-to-safety.home. usefulness.analyzed.are.in.by.analysis..in.Different...association.have.type.a. or.that.informational.with.using.analyze. from.but. team. of.with..the..the. take..more.the.performance.segmented.people.realize.can. one.product.is.the.design.meet.(CTC)..require.goods.subsequently. increases. methods. they. expectations.. segment.and.different.or.include.their. utility.VOC.collected.fair.not.VOC.consultation.VOC.personal. a.will.survey. Once.. as.it.be. improvement.aligned.and.practice.An.five..minimum.provide.its.an..been.products. long.Excitement..expenses.with.online.is.to. relative.book.value.been.activities.a. and.its.addition.soliciting.metrics.it. Surveys.can. must.internal.service.market.targets.expectations.focus.workflow.completely.and.value.should.and.very. by. translated. importance.location. considerations.merchandise. will.three.and. related.safety.gathered.and.by. and.as..translation.based.that.and.will..functionality.toolsets.into. a.cause.another.the. (CTQ).Lean.gaps.and.

.from.prior.not.over. improve.will. not.these.be.service.will.cost. profitability. noncore.eliminate.aid. eliminated.features.outsourced.be. time...a..that.them. these. if.having.tools. future.these.product.services.services. they.assembly..removal.to.various.also.their.workflow.a.product.that.even.justify.in. workflow.Also. important.inefficiencies.seven. products. that.products.minimum.that.may.is.continued.have.products. first. negative.many.given.create. complexity. if.context.at.outsourcing.a.profitability. It. services. A.customers.in.adapting.product.may.implication.or.common.part. a. would. process.wrong. .physical. may.time. an.service.service. because.a. gross.higher. are.could.unique.situation. As.to.complexity... very. an.Misunderstandings. organizational.concept.As.work.applied.work.that. to.of.concept.product.be. is.customers. workflows.of.is.process.Six. Service.from. surprising.of.In. was. many.to.can.they.summary.this.organization.service.a.and.to. presented.whose. improve.to. process.easy.improvements...an.or.workflows. or.to.time. to.them.nonessential. it..2.be.or.As.and.a.core. an.should. make.nonprofitable.be.marketing.be. cost.the.features.of.often.requires.an..in.way. customer.or.cost.concepts.The. profit. is.be. be.is.at.64  ◾  Lean Six Sigma for the Office Create robust product and process designs to reduce Complexity It.be.production.process. and.organizations.addition.key. low.second.to. services.simplified.features. its.can.deployment.or.incremental.Elimination.profitability.if..organization’s.impact.to.is.levels.assembly. they.parts.design.been.and.an.demand.sufficient. margins.use.. solution.profitable.to. at... meet.negative. that..if.methods. Table.and.In..produce.elimination.have.and.an.that.another.Lean.tasks.as.recommends.increase. increase.time.simplification.reduce.part..can.add.well. organization.added.strategies.design.caused.by.tasks.and. to.This. and.teams. organization. without. it.shown.will.goal.In..number.products.. quality. having.generally. that.reasons.these.an. rate.lower..an.lower. cycle.its.to.this.and.other. reduce.to.be.needs. system’s. negative.local.3.quality.good.product. and.addition. products.may. in..situations.resulted.be... and.not.been. sense.by.remain..Table.value.accepted.in.level. be.not.situations.product.produces.ways..only.product.processes. the. or.for.after. are..problems.that.book. out.designs. value.to. margin.fail.example.any..self-service.how.design.manual.by.and.of. Also.a.not.manufacturing.service.eliminated..a.product.. sense. complexity..the.the.that.are.also.that.that. its.lists.profitability. or.example.situations.a.components.design. is.or.operational. will.prioritize. and. A.from. no. improve. may. verifying.organization.product.and.service. configured. c .organization. are.or.process.of.services. the.and. “Lean”.or.in.of.sales.and. impacts.key.example. ontributors.use.by.decades.at. Kano.level. a. make. organization’s.products..organization.A.or.2.its. how.This. or. higher..combined. may.to.should.at.of.or. an.service.and.and.other.understand..as.their.may.designs.be.to.operations. a.offerings. to.value.to.services.the.key. very.service.occurred.of. it. facilities.an.of.do. example..portfolio.a.perspective. itself.An.organization.produce. an. service.may.use. simpler.services.3.customer’s.In..those.In.low. customer.reduced.have. an.and. going..encourage.Sigma..for.that. organizations.major.in.of.

such as failure mode and effects analysis (FMEA) and simulations. standardized components. pilots. Ensure it is the right thing to do. need using the correct technology. 4. Create robust product and process designs to reduce Complexity Concept 1. to manufacturing.2 2. Use features that enable snap-fit of components. only simple tools. Example: Self-service systems such as airport check-in.Lean Six Sigma Basics  ◾  65 table 3. Test new service systems under controlled market research conditions. simulations and other methods to understand its performance prior to commercialization. and merging components into composite units. Use asymmetrical 3. Use self-checking logic to prevent service errors or detect them as soon as their occur. prototypes. Use design for Six Sigma (DFSS) and Lean methods to simplify systems and their process workflows. continued . Simplify what is left by using fewer components. Methodically evaluate Fully test new product the product using designs prior to design for Six Sigma releasing them (DFSS). Classic Manufacturing Service Analogy Produce profitable Produce the correct products that services and customers need using information customers the correct technology. 2. 5. Design so the product can only be design features to assembled one way to ensure components avoid errors. Use proven tools and methods. can be assembled in just one way. Create procedures using visual systems so anyone can do the work. Design so the product does not require tools or. Use design for manufacturing (DFM) methods simplify products and their processes. models. if necessary. Example: Only allow certain product configurations. Be effective. Don’t do things that will not add value or be profitable.

. Create robust product and process designs to Classic Manufacturing Use mistake-proofing strategies including eliminating “red flag” conditions.used.book..way.a.methods..a.immediate.eliminating.ensure.configure.by.have.once.effects.design.components.important.use..in.asymmetrical.is.once...is.simplify.These.In.and.be.features.a. (FMEA).failure. simulations.context.assembled.the.prevention.Design. Mistake proof the product’s production process 2. Develop product and Develop product and process control plans process control plans to to ensure the new ensure the new service design meets the VOC. 7.standardization.and.released.environments.only. enable the system to verify data accuracy such as credit card information.facilitated.. strategies.Mistake...components.(DFM).Design.concept.product.manufacturing.is.common.process.. simplify.proofed.example.a.to.production.a.design.this..production. using.for.categorized.of. and immediate defect detection.“red.consolidated.be.services. this.as.of.process. Service Analogy Using information obtained from market research studies.elimination.through.been.and.to.the.is..methods.2 (continued) reduce Complexity Concept 6.services.on-site..These.just.their.flag”.simplified.error. service.chapter.services.testing. Example: If customers order a product pr service.in. obtained.methods.one.to.can. developed.Internet.can.production. prevention of error conditions. by.As.concepts.aggregating.it.can.and.conditions.product.products.and.office.to.strategy.errors.market.or.be.a.additional.be. .way.In.functional.and.just. mistake-proofing.customers. meets the VOC.and.testing.for.of. systems. Manufacturing.production.However.conditions.modular. are.will. assembled.in..and.so. standardized. Dell.computer.they.key.be.will..Lean.of.simulations.products.design.(DFSS).process. assembly. produce.to.will.In...ensure.can.can.it. released.analysis.the..prevent.errors.to.used.employed. to.mistake.and.later.third.simplification.constructed.are.. within.This.to.their. develop mistake-proofing strategies..one.discussed.proofing.. and other evaluation tools and methods.words.and.from.the..be..apply.from.service.avoid. the FMEA.studies.workflows..that.types.or. defect.other.to.In.. design.related.product.In.. the.66  ◾  Lean Six Sigma for the Office table 3.Sigma.Six.service.products.allowed..when.purchasing.the.detection.the..customer.research. information.in.to.mistake-proofing.or.are.used.within.mode..be. Continually evaluate production performance and the VOC.second.and.strategies.to.designs.mistake-proofing.this. A.components. of.

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of.a.found. forming.dysfunctional.are.team’s.3.roles.quickly. an.facilitation.team’s.especially.An.that.to.factors.3:.to.move. work.but.its..high-performance.create.leadership.systems.and.will. with. are. and.to.four.members.respected..is.related.. Case.consistently.shown.sustain. on.respect.of.success.it.performance.Lean.be.factors.and.an.barriers.given. the.improve.translated.or.goals.of.resources.ensure.success.team.a.stages. Continuously improve team performance 1.they.or..have. should. d .has.key.organizational.developing.of.manner. and process change 4.and.more. and. deployment.A.the.the. Storming Stage Figure 3.simple. the.varies. process.time.four.initiative.are.of.depends.Figure..communicating.members.within.team.to.been.a.when. create.. both..change. that.work.latter..is.support.do.that.performing.that.element.interval.In.. . Manage the four stages of team growth 3.In.studies.is.in.in.between.objectives.common.important. focus. Process.norming.of.creation. data collection.Another.and.process.differences. psychologically. Select the team based on the project charter 4. aligned.that.extent.to.that.common.Another. and.usually.shown.require.It.ways..to..goals.one.3 3. team.to. Train the team in the proper tools and methods of problem identification.aligned.also.not.in.team.deployment.through.Diversity.perspective. activities.are.others.and.and. incentive.several.storming.objectives. team.effective.perspectives.a.skill.facilitation. Forming Stage 6.consistent.. An.to.while. culturally.support.because.. Celebrate success! 3. analysis.to.work. a. However.responsibilities. improvement.success.and. Performing Stage 2.help.patience.spends.stages.Sigma.team.several. objectives.is.efficient.levels.a.provide.teams. data. high-performance.successively..properly.of.lack. goals.lower.the.factor.sets.with. analysis. is.some.maturation.responsibility.are.creating.consists.situations. within.realign. help.organization. organization’s.easier..organization. Norming Stage 2.The.a.also...shown..as.by.necessary.remove.perspectives.the.different.higher-level.is.68  ◾  Lean Six Sigma for the Office 1.effective.important.the.. has. collection.reinforcing.in. an.maturation.team.the.This.important.been.through.to.on. a.contrast. Identify root causes of the problem 5..actively. teams.Six..an.teams.activities.high-performance.team.these.active. deploy lean Six Sigma teams.down.. ifferent.leadership..is.very. leadership.information. organization’s. diversity.and. the.a.particularly..important.way.and.stage.improvements.

internal.project’s.be. would.analysis.necessary.to.value-adding.a.Available.Six.steps.impartial.production.facilitators.internal.responsibilities.be.work..percentages 5.its.may. and.skill.production.process.Common.of.to..prepared...success.the.the. acilitation.cycle. to.that.to.Six.cause.people 6.select.In.handful.charter.Setup.their.occurs.satisfaction.necessary..root.celebrate.external..a.noted. over.. a.metrics.different.used.will.in.in.situations..should..of.useful.this. enable.quickly.unique..team.provide..incentive.have.a.members.analysis.organization.process..an.team.it.a.and.resources. of.Downtime.workflow.and.In.conduct.benefits.In.how.over. operations. jobs.usually. process.be.team’s.functions.improve..team’s.selection...improve.units.and.team.through.its.Sigma.improve..in.This.include.time.members.in.to.a.an.process.team.on.maturation.Lean.objectives.to.diversity. within.monitor. an.performance. workflow .that.Six.per.process.good.other.usually.of.will.team.will.and.cause.members.be.system’s.process.a.sets.move. various.deployments.charter.members.(VA).although.solutions. expected.charter.as.percentages.Lean.downstream.3.a.time 2.have.measure.team.its.ensure.should..time.per.relative.the.by..shown. for.workflow.methods.a.diverse.(units.as.charter.the.shows. leader.or.Finally.. these.help.skills.of.and. time.measurements.that.Sigma.formalizes.should.has..level.leader..organized.to.Finally.anticipated.focus.there.to.also.suggestions.move.analysis. selection. issues.types.1.After..be.group.may..of.operations.workflow.the..operational.The.business.factors.is.workflow.when.capacities.Although.the.a..problem-solving.project.manage..than.in.performance.manage. periodically.are.on.Team.on.to.will.the.the.the.facilitators..within. . methods..if.additional.Sigma. to.operational. Figure.its.project.described.performance.include: .of..time 7.key.root.3.charters.project.applied.continuousimprovement.Lean Six Sigma Basics  ◾  69 f .natural..and.enables.root. to.are. at.rate...selected.team.to.a.a.performance.work.and.critical.a.percentages 4. been.a..through.across.upstream.its...are. training.Table.process.performance..process.should.operations.team.or.content.3.should.to.succeeds.cultural..project.starting.that.one.a.and. that.identifying. .that.based.to.deliverables.industries.Continuous.depending..also.team’s.project.step.addition..context.project..also. be.equipment.it.meetings.Percentage.is.measurements.six.team.to. . performance. other.It.team..minute) 3. to.In.team.team.by.of.process.resources.create..at.rather.fully. performance measurements Performance.support.adds.point. cost.training.project’s.either.to..their.eliminate.team. .financial.throughput.measurements. customer.including.or.and.various.and.just.they.and.A.team.A. .success.Scrap..supporting.Rework.its.just. .use.should. team.second.enable.First.to.of.focus.cause..also..team.may.hundreds.its.continue. 1.will.observers. the..problem.implement.improvement.Lean.roles.members.team.around.training.be.available.maturation.

In.actually. graphical.a.in. On-Time Supplier Delivery 5.other.operation. requires.in.be.as. Floor Area Additional Metrics (Depending on Industry or Function) A.at.but. people. Setup Time (Minutes) 8.define.it. Lead Time 7.those. to.a.and.describe.will.include..process.4.an.that.space.nine..to.multitude..Sigma. to.improve.the. brought..day.similar.shown.above.they.metrics. .mentioned. Warranty Expense/Incidents F. that. VSM.4.level.out.together.metrics.also.related.After. Percentage Scheduled Jobs Missed Additional Metrics (Depending on Industry or Function) 1. Create performance measurements. Scrap% 4.necessary.creates.to.metrics..are. Unplanned Orders 8. Week 4 Week 5 Week 7 Week 2 Week 3 Week 6 Week 9 Week 8 Average . be.that.3. Overdue Backlogs 10.create.well.75 50 ####### 420 Date: July Auditor: Joe Takt Time: 8.VSM..high. as. cash.using.related. Creating.Six.performance.financial.VSM.production.Lean.activities.the.is.expenses.4 Minutes/Unit (50 units in 420 Minutes) Operation "Accounts Payable" Improvement % Baseline Week 14 Week 15 Week 10 Week 11 Week 12 Week 16 Week 13 Week 1 Key Metrics 1.70  ◾  Lean Six Sigma for the Office Operational Performance Measurements Work Area: Accounting Operation: Accounts Payable Process Owner: Mary Operation Number: 4TD Average Job Cost: Units Per Shift: Shift Cost: Available Time (Minutes): $22..operates. Number of Customer Complaints D.VSM. Inventory Efficiency (Turns) 4.is.. together.as.in.services Organizations.initiative.are.flow.for..Figure.Sigma.The. Returned Goods Expense/Incidents G. Rework % 5.focus.the.we. Value Adding % 2.floor. Profit/Loss 3.we. Capacity (Units/Shift) 7. Material Availability 12.on.and. Total Process Workflow Cycle Time B. nine..of. a.analyze.projects.and.to.3.any.relevant.as.investment.products.their.correct. 9.such.metrics.discussions.performance.a.important.to.to.through. Create value Stream maps (vSms) A.at.in.Inventory.team.bring.they.is. Production Rate (Units/Shift) 3.time.It.created. Data Accuracy 11.metrics.operations. identify.Step. Annualized Savings H. shown. close.customer.measurements. understanding.Chapter.and.of.operational.. Inventory (Units in Queue) 9.important.these.these.Allocated.of. initial.a..day.of..sequence.reason.operational..their.and.4..well.our. Number of Problem Solving Teams C.gaps.track.a.and.manufacturing.required.repurchase.and.both. workflow...team.market.Figure.representation.Six.process.as.The.metrics. Schedule Changes 9..operation.have.people.by.an.share. a.deployment.of.and.their.in.a..in.least.4.Lean.revenue. Forecast Accuracy 6. Excess & Inventory Figure 3.4 4.a. Number Employee Suggestions E.of.how. create.will.service.as. Downtime % 6.process.applicable.industries.intent..over.operation .quantified.discussed.is.measure.. First Pass Yield (Rolled Throughput Yield-RTY) 2. 8.

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tasks.demand.is.to..contrast. operational.operational. implementation..takt.are.improvement.. a.time.the. Continuous Flow Pull System/ Kanbans 1.similar.process.a.a. Production.is.In..first.of.to.a.categories.10 7.Figure. 3..system. 2. If.percent..time. implies.a.JIT.stability.been.difficult.breakdowns.modify.then. levels.successful. System.or.portions.external. inventory.components.within.inspection.information. High Performance Work Teams Basic Problem Solving Tools Advanced Problem Solving Tools (Six Sigma) 5.using.stable.contrast.this. Stable Demand 1.external.. materials.customer.demand.throughput.large. non-value-added.unnecessary.10.and.for..implemented.and.has.operation.for.block.can.time.through.is.when..most.just-in-time.TPS.and.further.JIT. pattern.every.makes.can.demand. to.increasing. implement Just-in-time (Jit) Systems Many.broken.demand.This.demand.operations.a. hoc.be. 4.demand.a. the. The.a.constant. ad. the.unloading..As.that.its.a. created.stable.operations.organizations.that.operational. JIT.which.to.including.into.issues. Toyota.establish.takt.external.improvement. demand.or.have.value-adding.and.forced.workin-process. approach.process...projects.be. . concept..continuous.external.may.within.original.upstream..presupposes.additional.down.of.by.. a.a.percent..relatively.average.and.operations.material.system.created.Figure.down.unit.identifying.characterized.76  ◾  Lean Six Sigma for the Office which.setup.But.takt. was. (WIP).situation. 2.on.or.rework.scrap.depends.result.often.estimated.predictable.a.most.This.(JIT).tasks.deviation.These. implement just-in-time (Jit) systems—eliminate waste.variation.caused.as.However. part..concepts. by.information.demand.3.extended. exceeds. 3.of.by.time.. This.system..of.work.likely.think.be.by.operations. Operational Stability Robust Designs and Processes Standardized Work Mistake Proofing Single Minute Exchange of Die (SMED) Total Productive Maintenance Supplier Support Continuous Improvement 1.lead.movement.of.implementation..industries..are.stable.a. JIT. process.shown.fluctuations.whose.can.include.reflected..can.late. of.by.been.shown. original.activities.number.level.VSM..synchronized.on.shut. 2.situation.the.key.external. in.be.Lead. Figure 3.In.and. 6.time.Stable.the. This.in.by.±10.people.starved. will.(TPS).building.the.time.demand.in.±10..a. as.3.deliveries.be.work.reducing. monthly..of.waiting.9.is.from...by.a.or.it.also..

tools. include.original.with. dies.total.of.and.supply.will.as.and. work.time.a.building...people. for. to. important.investment.to.a.system.chain.service.result. release..and.achieved.systems.It.office. support.which..and.the.a.to. hence..many.an.materials.the..three.use.competitors.is.and. other.an.of. demand.are. of.activities. time.categorized.Chapter.A.high..deployment. The. JIT.. and.a. should.methods.the.easier.In. Toyota.processes.of.operational.process.methods.the.the.continuous. tasks..is.an.equipment.TPM. A.methods.result. must.be. in..effective.prevent.systems.of.set.that. to..include.directly.a. application.effective.requirements.creating..Other. methods. a.to.reduced.using.from.of.Lean.operational..and.the. synergy.higher-asset. methods.jobs. There. Supplier.needed. operations.of.. by. system’s.increased.its.noted.in.. also.Errors. have.activities. the. of.positioning. of.to.extent.major. cycle. as.and. the.also.range. the. mistake.also. and.initiatives. as.locations.operational. were.second.should.Common.building.cost.to.. s .scheduling.systems..also. operational.takt.but. variation. its.This.the.the.having.JIT.their.is.well. such.tasks.these. time.As. production..them..operational.formalized. that.increase.applies. However.building.(TPM). the.tools. as. deliveries.teams.to.application. and.block.design.and.block. that.and..significant.production..the..supply.are..information.and.tools.asset.of. characteristics.application.ensure.other.errors.It.. is. environment. Toyota.high-performance..designs. few.of.third.basic.of.discusses. to.5.by.used.TPM. quality.maintenance.blocks.. are.productive.There.systems.equipment.and.of. methods.Six.Production.Chapter. include.advanced.a.can. material. necessary. flow.basic.quickly. systems.common.a.to. stable. teams.of.through..service. minute.variety.analysis.stability. of.improvements.operational.be.of.key.minor. environments.production.is.specific.Lean.variation..can.effective.(TPS).a.impact.In..that.or.Sigma. A.deployment. These. manufacturing. use.engineering. more.supply. be.when. availability..facilitate. of.workflows.by.availability.including.work.up. discusses.However.will.be..through..such.organizations.the.System.among.degree. has.into.design. ones.suit.. (SMED).initiative.of. and.broadly. deployment..made.found. on-time.. and.than.. external.the.have.tools.availability. and.and.is.be.the..six. and.ensuring.techniques. Lean.of.system.creation.Lean.be.internal. a.important.high-performance. unique.chain.Sigma.and.created..availability.stability.by. modified.development.6. process.environments.Sigma.problem-solving.continuous.as.utilization. to.Supplier. this.context.in. manufacturing. its.of.training. to.written. prior.over. of.key.supplier.These. facilities. ystems. over. also.pull.have.work..robust.service.of.to.and..Toyota. production.modifications.contracts. they.Lean Six Sigma Basics  ◾  77 TPS.are.logistics.problem-solving.problem-solving.and. single..many..for.support.times...tools.at.its.product.chain.procurement. developed.quality.and. exchange. are. well. assets. course.efficiencies.application. many. factor. increase.front. Production.optimum.quality.industries.they. customer.because.as.stability.should. JIT..systems.maintenance..the.time.of.supplier.. standardized.“Lean”.within.Six.up. complicating.facilitates.processing.workflows. As.occurrence.. and.fact.within. stabilize.improvement.work.improvements.improvement.JIT. .system.operational.its.Six.office.optimize.and.of..procedures.proofed.a. many.they.continuous-improvement..demand..support..

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discussed.smooth.of.the.in.direct.adjacent.locating.could.be.flow.packaging.this.other. by.in.example.cell.. U-shaped.walk.within.or.around.materials.work.It. the.flows.be.cell.and.solution.enables.the.words.isolated.or.result.around.operational.initially.adjacent.material.the.above.. process. can.or.linkage.decreased.enters.assign.in. that.The. both.through..a.conveyors.adjust.contributed.person. work. workers. to.line. cell.in. at. unit..In.inside.traversing.shows.to. moves.of. link operations.of.packaging.the..the..to.the.a.to.it.people.environment.the.adjust..machines..a. cell.packaging.had. machines.. advantage.unit.area.the. The.is.or.one.exits.flexibility.machines.work.buildup.one.packaging.simply. a.cell.and.that.to.as.labor.work. same.Figure.reason.operational.A.also.that.manner.face. work.In.example.c.the.one.lines.. using.either.line.employees.information.to.lines.12 7.how. increased.to.Lean Six Sigma Basics  ◾  83 Figure 3..applied. of.work. work. entered.U-shaped.inventory. single.around.the.lines.lines.or.size.it..was.and.can.its.operation. be.each.12.within.load.through.both.and.the.work.physical. that.other. .could.cell.employees.within.point.As..so.that.turning.a. an.lot.found.to.load.the.office.assigned. is.similar..effectively.or.unique.physical.was.form.A.configuration.U-shaped.two.these.packaging.prevents.office.more.configuration.a.were.concepts.using.work.operations.the.3.

operations.an. system’s.takt. operation.and. a.3.and. there.in.by. are..across.workers.a. system’s.its.of.chapter.improving.80. from. in.or.by.a.non-value-adding.eliminating.key. is.is. map.can.the.an.This.number.environments.are.is.added.9. linked.of..must.Also. a. (VA).provide.capacity.queuing. process.are.ayout. station.at..analysis.unit.or.takt. allowed.research.8. information.stations.value-adding.improvements.useful. one..On.if.almost..in. time.completed.relative.removed. exceed. operation.work..key.As. work..these.. words.OR. process. six. as. and.concept.people.be.6.completed.. created.the.subsystems.required.system.and.minimum.helpful.similar. of.how. no.methods.Figures.an. a.calculated.day.increase.divided.operations. operation.an.materials.of.3. eight. .analyzing.services..very. time. flowing...first.second.means.required.these.the. a.of. operations.hour).by.every.as. Every.of.types.then. tasks.capacity.content.time.. As.excess.of. the.tasks.materials.example.process..in. to. implies. if.directly.. implies.that.is.is.systems.must..information.and. This.layout.situation..discussed. multiplied..common.the. an.the.analyses.example.designing.area.made... identify.day.the. As. example.minutes.must.moved. are.within. system’s.be.calculated.global.office.work.interfaces. without. work.flow.per.and.environment.anywhere.immediately.time.per.demand.to.time. example.. over-. that.or..goal. no.production. to.should.waiting.dynamically.reduce. balanced. IT.workflow.stations.one. requirements.earlier.analyzed. operational.second.its.every.to.in.underloaded..high.of.a.work. related.As.process.As.the.and.shown.similar...in.inspections. has...the.met.information. as.keep.equipment.unit.work.480.been.the.. takt. theory. time.complexity.demand.office.is.people.as.Balanced. is.(OR).is. This.in.. per.are.per-unit. But.particular.it.have.the.The. demand..including.overloaded.of.a.of.3.such.per-unit..is.an.unit.calculated. available. capacity.automation.. cycle.a. its.in.will.the.adequate.process.. of.then. standardized.to.takt.minutes.to.when.IT. takt.these.functional.is.degree.in. of.more.rate.analysis.methods..IT.work.types.time. to.virtual.are. or.completed.in..varies..units. at.to. interruption. information.and.available.The. to.a.operation.linking.this.and.such.show. practice.unnecessary..due. work.work.stations..principles. the. machines.other.or. setups. group.the.types.OR. significant. exceeds.or.per..practice.a.or.but.60. workflow.global.time.(8.additional.. day.using. time.if.through.84  ◾  Lean Six Sigma for the Office As.is. has. or..cost.of.the. In.. station.systems.the. a. impacts.minutes. and. been. another.and.station.world.office.analysis.global.of. and.hour.a.hand.to. operations. system’s. an.work.by.tasks.products.to.balanced.those.which.After. this.are.of.step.relative.system.Figure. the.these. that.in..in. is.be. l .per. to. underloading.environment. is. have.other.time. In.one... flow.material.6.per.types.available.at.be. Balance Material Flow Once. the.technology.(NVA).that. external. not.minutes.(IT).a.takt.an..is.be.have.of.even.production.in.floor.be. hours.or.work.hours.production.capacity.which..reasonable. still.the.information. that.time.layout.one.systems.However.applicable. time.in.their. comprise. eight.physical.it.can.units.

work.meet.This.and. made..time. cycle. (NVA).3. any...of.path.a.within.means.other. to.non-value-adding. Balance material flow.is.system.the.a.also..is..flow.reduce.discussion. a.stations.having. to.bottleneck.of.resource.operational.been..parallel.system’s.able.A.those.may.system.system’s.in. operational.Lean.13.our.be.Figure.critical..through.takt.called.chain.cycle. that.the..has.of.should.provided.with.the.through.additional.added.operation.13.more. takt..only. become.system’s.nonbottleneck.it.office.lower.a.be.supply..through.it.of.combined.cycle.elimination.controls.obvious.work. on.known. control.through.shown. workflow.system.is..sequence.operation. system.takt.be.3.capacity.flow.work. compared.or. having.exceeding.ensure. station.operation. of.constrain.the. sequence.flow.workflow.a. will.time.to.to. the.capacity..improvements.system’s.work. eliminate. path. path.that.facility.bottleneck.in...A.Alternatively. time.materials.the.times.may.across.is.or.concept.to.process.may. and.excess.information.cycle.than.be.. other. longest.system. critical.system. Bottleneck Management In. must.operations. parallel. total.times. operations.d.takt.balanced.continue. through.but..a.balance.tools.levels.It.one.that.an. time.relative.operations.process.operations.methods. point.important.As.its..flow. in.time.times.13 7.it.the.will..a.called.This.a.operations.we.at.a.with..path.operations.This. single.any.be.that.one. This.sequence. the.is. .will.that.a.Lean Six Sigma Basics  ◾  85 Excess Capacity Operation 3 Operation 6 Takt Time Operation 2 Operation 4 Operation 5 Operation 2 Operation 7 External Demand Too Little Capacity Figure 3.to.will.is.having..of.of.work.Figure.of.to.implies.and.certain.of.single.time.tasks.critical.system’s.because.at.the.

. to. cannot.either.meet.takt.maintain.utilized...an.shifts.when. office.bottleneck.1 Bottleneck management.scenario.operation.applies.feeds.to.example.system.on.a.concept.d.bottleneck’s.. resources.words.meet.rate.of.Another.another.to.of.bottleneck. a.increase.to.a.the.should.meet.a..elsewhere.bottleneck.determined.operations.bottleneck..a.In.is..through.bottleneck.situations.In.then.scenario.should. times.work.by.not.utilized..production.flow.throughput.increasing. overall.increase.multiple. at.several.strategies.an.that.must.a.the.demand.if.In.bottleneck.not.meet. other.or..needed.utilized.86  ◾  Lean Six Sigma for the Office Bottleneck Feeding a Nonbottleneck Nonbottleneck Feeding a Bottleneck Capacity: 100 Units Per day Capacity: 50 Units Per Day Capacity: 100 Units Per day Capacity: 50 Units Per Day Figure 3..be.on.activated..a.operation.or.rate. the.required.support.nonbottleneck.capacity.. In.14 7.comment.to. other.bottleneck.be. may. operations.developed.the.sequence.subordinated. operation.time. be.the.resources.are.to.first.capacity.exceed..to.its.utilized.way.As.bottleneck.final.3..bottleneck.must.production.could. bottleneck’s.over.if.level.an.their.sufficient.improvements.periodically.first.environment.reversed.to.. operation.provide.how.important. called.are.the.a..the.and.organizations.the.idle.its.required.used.be.operations.In.because..shows.other.process.its.meet.of.cannot.system’s.added.activated.system’s.14.second..additional. uninterrupted.increasing.enable..takt.a.or.required.only.takt..to.the..improvements.as.have.be.workers.concept..a..activation.a.the.could. become.they.process. .capacity.bottleneck.where.As.of.the.the.demand.demand.its.within.time.all.As.capacity.system.time.result. a.support.can. constrained.to.their.system.However.strategies.focus.they. Figure.Put..and. bottleneck’s.to. capacity.is.equipment.rates.be.operation.operation.be.a.does.rate.scenario...

batches. to..the.be. obtained.usually.been. environmental. creation.sequence.ten.and.several.sent.a.batch.rather.areas. when.produced. completed. Transfer Batches Using. noisy.a. completed. three.15.. units. and.approximately..conditions.unexpected.cycle.other.to.the.frequent.Because.work.are. a.through.be. reports.Red-flag.concept.are.and. a.a. the.its.accounting.The.job..system.supervisor. office.within.also..is.moved.maintaining.jobs. As.several.using.material.next.is.with.occurring.to.in.identified.or.of.release.a.time.takt.strategy.or.by...to.are. to.As.a.cannot.a. dirty.to.lot. lit. time.using.time. significantly.employees. very.This.As.work..transfer.by.to.transfer.of. process.operation.production.transfer.units.department.conditions. has.that. from.design.error. a..red-flag. several.. time.flow.when.may.reviewed.produce.customers. changes.having.proofing.prevented..infrequently..helps.red-flag.to.prevented.3. Mistake Proofing Mistake.system.teams.a.operations.system.from..a.a.the.faster.interruptions.of.than.It.production.conditions. batch. total. operation. Ten. batches.or.of.turnaround. at. its.the.lead. strategies.has.that.time.a.an.rule.red-flag.systems.techniques.balance.mapping.to. used.after. downstream. strategies.cycle.operations.batched.include. to.batch.percent.produced.applicable. to..24.time. a.long.time.have.a.effective.contribute. soon. operational. to. lead.times..lack.just.of.so..process.as.and.the.batches..idea.C.the.protection.the.maintain. preceeding. understand. contrast. one.service.of.been.process.work.in.because.used.process. production.immediately. helps.. a.an.its. such.The.conditions. a.work.are.the.an... conditions.batching.eliminated.minutes.production.was..most. within..procedures.either.all.quickly.minutes.flow. useful. mistake.to.batched..using.(VSM). system’s. as.and.. as.improvement. units.also.conditions. and.. common.defects.or. Figure.when.see.mistake.60.levels.workflow.will.has.operations.to..than.move..batch.process.system.mistake-proofing.include.or.Figure.training.and.using.At..of.is.those. every. detected. sends.the.and.system. a.one.certain.the....a. another.frequency.from.level. can.only.or.concept.batch.defects..through. as.are.including.system.A.are. shows.conditions.and.contribute.The.total.example. reduce.together.In.used.the.directly.jobs.operations.B.lack..16.process.a.of.information.Transfer.It.because.units.operation..versus. fully.Lean Six Sigma Basics  ◾  87 bottleneck.changing. work.that.well.from.of. .to.production.proof.are. occur.proofing.are.a.transfer.easy..under.expense. work.been.. poor.their.errors. operation.it.immediately.effective.simply.reduction.Value.the.through.when..of.flow.measurement.cycle. to.shown. cycle.in.documented. In.creation. they.transfer.tasks.system.Mistake-proofing.stream.can.another..can. poorly...reduced.to. eliminate.error.result.first...is.for.is.conditions. or.60.good..turn.bottleneck.a. capacity.3.rather.key.by.it. example.compares. through.complete.travel.product.is.of. operation.fail.

.15 7.d.88  ◾  Lean Six Sigma for the Office Process Batch Time 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 60 Transfer Batch Time 2 2 2 2 2 2 2 2 2 2 2 2 24 Operation A B C A B C A B C A B C 1 2 2 2 2 2 2 2 3 2 2 2 Operation A B C A B C A B C A B C A B C A B C A B C A B C A B C A B C 1 2 2 2 2 3 4 Unit 5 6 7 8 9 10 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 Unit 4 5 6 7 8 9 10 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 Figure 3.2 transfer batches.

of.prevent.to.is.an. designed. generous. service. organization.maintenance.of.workflows.the.defects. through.systematically.prevent.because.Lean Six Sigma Basics  ◾  89 Red Flag Conditions Error Conditions Defect Detection Figure 3.process.methods.the.cause. eliminate.services.process.prevent.down. DFSS. complexity.analysis.eliminated..next.and.reduction.. use.by.through.an.copying.tools..them.and.proper. and. alarm. conditions. are.of..of.of.includes.typically.that. of.activating.of. to.example. Six.jams.to.structured. products. an.been.they.usage.and.additional.identified. customized.16 7.(DFM). .translate.from. Standardization. and.level.components. standardization. methods.detect. services..defects. and.quality.requesting.the. on.An. a. High Quality Table.and.would.process. impact.shutting.procedures. q ..defect.of..systematically.A. higher. several.complexity. off-the-shelf.status.. uality. are. identify.that.ensure..from.lowest.be.detect..process.automatically. improvement..and.Design. product.(VOC).eliminated. activities.a.mistake. the.prioritize.proofing. within.follow.the.and.organization. and.lower. These.of. red-flag.machine.a.design. have.equipment.correct.to. set.is.the.Effectively.additional.shutting.of.It..have.the.causes.translating. than.been. tolerances. of.an.easy. design.the..Manufacturing.a..effective.to.work. rather.to.of.for.of..3..or. activities.as.activities.the.is.resultant.contribute.services.paper.breakdowns.as.cutting-edge.list.levels.known. effectively.This.Mistake.occurrence.(DFSS).for.e.a..organization.equipment.design.and.correct.design.as.the.by.root.using.copying.soon.the.the.mistake-proofing.4.improvement.. and.error.process.products.trained.The.Design.down.it.to.occurs.are.The.important.its. mistake proofing. common. levels.a. and. components.voice.their.prior. through. materials. that.done.higher.have.conditions. cumulative.. system.is.Sigma.warn.. can.creation.or.customer..into. and.of.of.inspection. reduce. lists. to.other. assuming.VOC.activities.to.to.also.operators.the.work. process.level. were. achieved. that. proofing. contribute.prior.monitoring. tools.to.strategy. failure.cause. to.the. be.various.and.products.people..in.using.

detect error conditions.a.service. for.Six. integral. Design for Manufacturing (DFM).chapters.but.DFM. concepts. Eliminate red-flag conditions. the.and.the.and.in.an.by.subsequent. our.Sigma..programs.tools.is. of.of. Root.discussed. successfully. are.methodology.Chapters. they..of.6. which.and.reduce.It. ways.the. Lean. Sigma.design. will.. customer.and.to.a.be..in. Use common materials.to.minute.methods.be.stand-alone.contain.developed. are. Design for Six Sigma (DFSS).originally.otherwise.will.stand-alone.improve.subset.applied. Lean.their.workflows.or. manufacturing.tools.to. Ensure work and inspection procedures are easy to follow and people have been trained in their usage. philosophy. tools.designed.up.and.and.DFSS.utilized. In. operational.single. simplify..workflows. requirements.have. and prevent defects from occurring.required.considered.developed..methods. the.described. basis.set.value-adding. .original.tools. Simplify and standardize product and service designs and their production processes to eliminate non-valueadding work tasks that only contributes defects to the ultimate product or service..f. activities.of.a.The.an.improvement.methods. that. simplify. industries. work.set. Lean.been.job.. cause. Another.a.DFSS.was.important.of. Six.5. production.in.3. and off-the-shelf rather than customized components. of. and. standardize.the.for.added.heavily.other.Although.environments.methods. the.DFM. make. of. and.However.as.methods.of.effective.services. application.is.than. these.and.were....context.process.in.of. integrated.the. by.can.of. basic.Standardization.office.VOC. now. Reduce Setup Time (SMED) SMED. their. 5S.of.. a.advantage.to. Analyze the final product or service design to make it impossible to fail during assembly or customer usage.as.and. the. into.set. to.is.acronym..We.products.but.Table.dies... reflect.improvements. many.exchange.of.modification. and other cutting-edge tools and methods.products.is.that.major.methods.DFM.will. Also.90  ◾  Lean Six Sigma for the Office table 3. service.a. generous design tolerances.originally.that..that.design.the.of. tasks.4 7.in.example.and.methods. high Quality “zero defects” Product design Design products using the voice of the customer (VOC).translation..tools.the.content..to.because.to.higher. Reduce complexity Standardize Mistake proofing Effective root cause analysis ensures..are. It is important to use problem-solving tools and methods to identify the reasons or root causes for higher-level problems or process breakdowns.process.. concepts.time.Lean. enabled.its. discussion. analysis.DFSS. continue.4. office.concepts. methods.are.

Move elements to external setup Offline work tasks can be scheduled independent of the job setup.the.These.to.individual.identification.are..value-adding. Simplify and standardize these work tasks using Lean and information technology (IT) methods.described. Example: Information could be collected prior to a meeting as opposed to during a meeting.processes.of.and.The.are.integral.of.similar.5 7.setup. and mistake proof remaining elements Study those work tasks that remain part of the internal or online setup of a job. jobs.tasks.business.5.which.to.was.and. i.work.effective. value-adding.with.example. then. .first.NVA.work.analogous.SMED.methods.g.activities..would...of.requires.the. Simply.a.of.origin.eliminate. work tasks required to set up a job.an. Service Operation  Applications Break the setup of a job down into its smallest work tasks.goal.or.to.program.Table.is..(NVA).activities.required.e. Identify work tasks that can be completed prior to the job setup.work.consist. other.key.a.are. Example: Use process maps and develop a sequential list of work tasks.an..SMED.3.setting.SMED.of.as.As.creating.SMED.job.is. 2.and.lists.The.set.up.activities. Design mating dies so they fit together only one way and can be mated and adjusted without tools.key.to.immediately.. and BVA.work.operations.analysis.(BVA). 4.in.is.the. Study internal setup work tasks and make design modifications to the process to convert them to external work tasks.tasks.several.SMED.The.office.non-value-adding.analysis...the.Lean Six Sigma Basics  ◾  91 table 3.Lean.tasks. mapping. Characterize them as VA.in.job. Eliminate NVA work tasks from the setup process.tasks. Separate internal from external setup 3. Identify setup elements Key Improvement Tasks Map out in sequence all the elements.from.associated.activity. but with lower priority than online tasks.to. Study the internal or inline setup work tasks and eliminate or standardize them.. reduce Setup time (Smed) “Single minute exchange of die” Improvement  Opportunity 1.manufacturing.There.them.. Identity those work tasks that can be done offline and do not directly impact production.a.up.classifying. NVA.sequential.of. But these tasks should also be studied using SMED methods and simplified offline.in.. office..tools.creating.(VA). standardize... its.

.activity.analysis.external. manufacturing.relationships.availability.example.save.A..This. extracted.that.ways.or.an.the.the..efficiency.Internet..job. be. remaining.design.the. designed.technology.insert. set. that. extract.be.more.other. information.modifications.will.to. called.to.to.a. fit.or.activity..an.the.the.for.separation.will.manufacturing. developed. include.directly.of.can.to..mistakes.In. of.reliability.. this.conversion.the.strategies.done.to.. environments.or.A.job.each.to. SMED.yes.and. a.an.reduce.system. tasks.tasks.of.key. and. together.into.and.SMED.information.92  ◾  Lean Six Sigma for the Office a.situations.the..reduce.strategy. preventive.mistakes.a.relative.and.of.equipment.to.enabling.identification..reduce.internal.be. prior. maintenance. tooling.a.evaluation.a.a.online.a.level..a.help.work.invoicing.discussion. type.work.key..invoicing..only.be.and.key.up.SMED.ways.up.are.from.typical.tasks.A.avoid.tools.would. which.people.quality.or.prior.environment.assembled. dies.to. using.. p .cycle.As.external.categories.invoicing.to.by.analysis.that. ensure.them.available.would.such.completed.tooling.to.related.would.credit. total.job-specific.at. value.example.setups.. is.process.without.predetermined.with.analysis.one.6.excluded...internal.at. analysis..and.required.schedules.these.proofing. .(IT).In.in. may.production.the.work.is.information.necessary.a.process.A.relative.tasks..Another.needed.consideration.associated..way.do.and.an.tasks.in.overall.environment.speed.. work.when.prescreening.the.requires.not.and.requires.type.reduce.first. asymmetrically.major.example.from.cycle.a. SMED.have.number.to.from..in.common. their.time.External. be.can.an.this.external.remaining. work.fourth..map.words. would.design.office.asking. mating. maintenance.of.of.a.of.a.standardization. is. addresses.to. Total Preventive Maintenance Total. to.job.simplification.categories. analyzed.setup..increases. using.tasks.time.lists.disparate. reduce.equipment.. is.that.meetings.to.environments.features.history.third.. of.customer’s.is.and.hand..system’s.time.a.an. names. job.databases.through.its.be. are..continuous. of.at.this.convenient. of.portions.further.is. the.reducing.into.dies.adjusted.improve.If.fourth.a. would.tools. work.cycle.setup.up.tooling.team.setting. amounts.times.cost.Also. methods. time.enable.the.and.the.the.automate.of.Lean.cycle.equipment.to.usually.. tools. of. that.time.is.be. so.key..begins. to..reduces.this.as.to.a. robability.sign-offs.In.required.and.office.tasks.key. for.. overall..the..3.mistake.questions.internal.activities. to. product. also.this.classification.TPM.job.relative.the. a. productive.of..look.operational.to.designs.important.In.These.for.not..the.use.impact.activity.to.they.set. transaction.cycle.modification.The.activity.an.to. In.and..concept.answer. (TPM).content.information.at.and.Table.identifying.process.is.for.candidate.tasks.work.manufacturing.bring.up.or.In.job.production.paid.second. ensure.examples..special.collecting. then.be.other..information.set.an.examples.the.manufacturing.Integral..three.the.to.job.complicated. The.work.methods.include.with. customer.to.environment.to.level.offline..setup. using.may.avoid..of.other.is..the.candidates. of.time..of.are. invoice.internal..them. philosophies.time.to..

Lean Six Sigma Basics  ◾  93

table 3.6 7.h. total preentie maintenance (tpm) “preentie…Autonomous…predictie”
Improvement  Opportunity 1. Eliminate breakdowns Key Improvement Tasks Service Operation  Applications

Analyze operational Analyze equipment and equipment by major people to determine their category, i.e., pumps, availability. Develop vehicles, compressors, etc., strategies to increase and for their required sustain system availability. maintenance frequencies, and integrate their required maintenance into a TPM program. Analyze maintenance failures and develop strategies to eliminate their root causes. Do not run equipment at rates exceeding their design. Analyze equipment production rates below standard and eliminate their root causes. Do not run equipment or work people at their capacity for extended periods of time. Identify the root causes of worker sickness, lateness, terminations, and resignations. Ensure work conditions are ergonomically designed and maintained for workers. Identify, analyze, and eliminate worker and equipment errors due to fatigue or ergonomic issues.

2. Maintain standard production rate

3. Reduce yield loss at start-up

Analyze the types of start-up scrap related to maintenance issues. Identify and eliminate their root causes.

pumps,.vehicles,.compressors,.and.others..The.reason.for.the.classification.of.equipment.into.categories.is.that.common.maintenance.policies.can.be.applied.to.equipment.having.a.common.design.because.they.may.use.similar.replacement.parts.and. service.technologies..As.part.of.the.classification.of.equipment,.an.ongoing.analysis. of.maintenance.failures.is.also.used.to.identify.projects.to.eliminate.their.failures.. The. overall. production. capacity. will. be. increased. to. the. extent. that. the. incident. rates.of.process.breakdowns.are.reduced..In.an.office.environment,.system.availability.depends.on.several.interacting.components..These.include.information.technology.(IT).databases,.analytical.algorithms,.input/output.devices.and.their.associated. systems.and.platforms,.the.professionals.doing.the.work.of.moving.materials.and.

94  ◾  Lean Six Sigma for the Office

information.through.process.workflows.as.well.as.other.peripheral.equipment,.and. information.that.is.necessary.to.ensure.service.systems.are.available.for.use. A. second. key. strategy. is. to. use. equipment. only. at. its. standard. production. rate.. In. other. words,. equipment. should. not. be. operated. at. rates. exceeding. its. design.specifications..If.additional.capacity.is.needed.to.maintain.a.system’s.takt. time,.then.additional.pieces.of.equipment.should.be.employed.to.meet.production.requirements,.or.equivalently,.could.be.operated.for.longer.periods.of.time.. This. means. additional. work. shifts. should. be. used. to. meet. production. requirements..In.other.words,.equipment.should.not.be.operated.or.people.worked.at.or. beyond.their.available.capacity.for.extended.periods.of.time..Available.capacity. is. defined,. for. our. purposes,. as. a. system’s. design. capacity. minus. adjustments. due. to. expected. losses. of. capacity.. On. the. other. hand,. if. equipment. performs. below.its.rated.standard.production.rate,.then.an.analysis.is.required.to.identify. and.eliminate.the.root.causes.for.these.lower-than-anticipated.production.rates.. In.this.context,.it.is.important.to.measure.the.actual.capacity.that.is.available.to. do.work..It.is.less.than.a.system’s.available.capacity.due.to.unexpected.process. problems..These.problems.include.rework,.scrap,.and.schedule.disruptions.that. degrade.a.system’s.available.capacity..To.avoid.degradation.of.actual.capacity.or. even.to.expand.it.back.to.the.expected.level.of.availability,.an.organization.should. identify.the.root.causes.of.its.process.breakdowns..In.office.environments,.these. may.include.worker.sickness,.employee.lateness,.terminations,.and.resignations.. Ergonomic. considerations. are. also. important. to. ensure. people. remain. healthy. and.their.working.activities.are.efficient. A. third. key. strategy. is. to. reduce. yield. loss. at. job. start-up. to. increase. actual. capacity..This.requires.an.operational.analysis.of.process.breakdowns.using.Lean. and. Six. Sigma. methods.. Many. systems. have. issues. associated. with. wasted. time. and.resources,.i.e.,.the.seven.basic.process.wastes.shown.in.Figure.3.1..These.seven. wastes.directly.impact.a.system’s.maintenance.efforts.as.they.relate.to.the.maintenance.of.equipment,.IT.system,.and.employee.capacities..In.summary,.in.office. environments,.it.is.important.to.use.Lean.Six.Sigma.methods.to.identify,.analyze,. and.eliminate.process.wastes.that.contribute.to.longer.cycle.times,.lower.quality,. and.higher.transaction.costs.

Level Demand
In.addition.to.basic.process.improvements.that.increase.system.performance,.the. more. advanced. JIT. systems. also. require. level. external. demand. to. establish. and. maintain. a. stable. takt. time.. Figure.3.17. shows. five. common. demand. patterns:. level,.normal,.erratic,.seasonal,.and.demand.impacted.by.sales.promotions..There. are. many. other. types. of. demand. patterns,. but. these. five. common. patterns. will. illustrate.the.relevant.concepts..In.our.discussion,.level.implies.unit.demand.variations.in.the.range.of.±10.percent,.normal.implies.that.unit.demand.fluctuations.

Lean Six Sigma Basics  ◾  95
7.i. Level Demand Time Series Plot of Common Demand Patterns Variable Normal Demand Erratic Demand Level Demand Seasonal Demand Sales Promotions

1500

1250 Units (000)

1000

750

500
M ar

ch

Ju

ne p

Se

m te

be

r e

D

m ce

be

r M

ar

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Figure 3.17

7.i. leel demand.

are.±25.percent,.and.erratic.could.imply.fluctuations.of.more.than.±100.percent. of. average. unit. demand.. In. addition,. demand. patterns. could. exhibit. seasonal. fluctuations,.promotional.spikes,.and.other.patterns.specific.to.certain.industries.. H . owever,.level.does.not.imply.that.there.is.no.variation.in.external.demand,.but. only.that.variation.of.demand.should.not.exceed.a.system’s.available.capacity.and. disrupt.its.takt.time. The.ability.of.a.supply.chain.to.stabilize.the.external.demand.that.is.placed.on. its. participants. varies. by. industry. as. well. as. by. the. organizations. within. a. given. industry.. However,. some. supply. chains. may. have. options. that. will. help. reduce. their.variation.of.demand..The.most.important.option.is.not.to.engage.in.marketing.and.sales.promotional.activities.or.otherwise.manipulate.their.external.demand. patterns..This.is.because.these.types.of.activities.tend.to.increase.demand.variation. and.are.often.major.contributors.to.the.deterioration.of.a.supply.chain’s.ability.to. match. its. capacity. to. fluctuating. demand.. These. conditions. will. lower. a. supply. chain’s.productivity..A.simple.example.of.this.concept.is.the.demand.that.is.placed. on. Wal-Mart’s. numerous. retail.stores. versus. that. which. is.placed.on. some.of. its. direct.competitors..Wal-Mart’s.products.exhibit.relatively.stable.demand.patterns. precisely.because.Wal-Mart.does.not.overpromote.its.products..In.contrast,.many. of. its. competitors. routinely. promote. their. products.. The. result. is. higher. inventory. investment.. In. summary,. product. or. service. promotions. have. the. effect. of. artificially. manipulating. external. demand. patterns. throughout. a. supply. chain’s. participating.organizations..These.situations.may.adversely.impact.a.system’s.asset. utilization.efficiency.and.capacity.

96  ◾  Lean Six Sigma for the Office

Not.accurately.matching.supply.and.demand.across.a.supply.chain.will.result.in. excess.capacity.when.production.schedules.are.empty.due.to.nonutilized.resources.. On.the.other.hand,.when.capacity.is.constrained.due.to.overloading.of.production. schedules,.customer.service.levels.deteriorate..Unfortunately,.an.efficient.matching. of.supply.or.capacity.to.demand.may.not.be.possible,.due.to.inefficient.resource. utilization..As.an.example,.it.is.very.common.to.enter.a.service.operation.such.as. a.bank,.hospital,.store,.or.restaurant.and.wait.for.an.inordinate.period.of.time.due. to.a.lack.of.available.agents..This.situation.is.usually.caused.by.poor.operational. planning.. Alternatively,. demand. on. a. system. may. be. higher. than. expected. due. to.abnormal.causes,.which.may.preclude.efficient.operational.planning.regardless. of.staffing.efficiency..However,.even.in.these.situations.some.service.systems.have. been.designed.to.immediately.expand.their.capacity.as.demand.fluctuates.over.a. large.range..A.common.example.is.capacity.planning.within.a.global.call.center. network..In.these.highly.integrated.systems,.calls.from.anywhere.in.the.world.are. automatically.rerouted.to.other.call.centers.within.the.network.if.a.customer’s.waiting.time.exceeds.a.predetermined.target..In.other.words,.there.may.be.cost-effective. strategies. that. an. organization. can. develop. to. match. its. capacity. to. demand. to. effectively.level.the.capacity.of.the.system..These.strategies.may.range.from.developing.common.product.or.service.designs,.to.increasing.operational.flexibility,.to. forming.partnerships.with.other.organizations,.including.the.outsourcing.of.work. to.reliably.increase.available.capacity.at.low.cost.

Reduce Lot Sizes
The.concept.of.lot.size.is.common.in.manufacturing.systems..But.it.is.also.analogous.to.service.system.operations..As.an.example,.the.larger.a.lot.or.batch.or.work,. the.longer.the.lead.time.before.the.next.operation.will.receive.the.batch.of.work.. A. lot. or. batch. of. work. could. include. several. invoices,. expense. reports,. résumés,. or. similar. types. of. work. that. require. analysis. by. an. office. worker.. The. concept. of.a.lot.or.batch.is.also.similar.to.our.previous.discussion.of.transfer.versus.process.batching,.which.was.described.in.Figure.3.15..Recall.in.transfer.batching.that. units.of.work.are.immediately.transferred.to.the.next.operation.rather.than.batched. together..However,.a.reduction.in.the.size.of.a.production.lot.implies.that.it.has. fewer.units.or.work.to.begin.with..This.difference.is.apparent.in.situations.in.which. lot.sizes.are.larger.than.required.because.of.contractual.or.technology.constraints.. In. other. words,. our. goal. should. be. to. create. small. lot. sizes. to. enable. a. flexible. capacity.response.to.external.demand,.and.to.produce.them.using.a.transfer.batch. methodology.to.further.reduce.their.production.lead.time..In.this.context,.minimizing.the.size.of.a.production.lot.is.a.concept.that.is.slightly.different.than.transfer. batching..It.should.also.be.noted.that.many.of.the.Lean.concepts.we.have.discussed. in. this. chapter. will. also. help. reduce. lot. size.. As. an. example,. the. application. of. SMED.principles.will.enable.more.frequent.job.setups,.which.can.be.subsequently.

Lean Six Sigma Basics  ◾  97

Unit 1 Process Batch for Job j Unit 2 Unit 3 Unit 4

Unit i

Unit Flow for Several Jobs Job 1

Job 2 Job 3

Lead-Time Reduction

Job j

Figure 3.18

7.j. reduce lot sizes.

translated.into.reductions.in.lot.size,.and.yield.improvements.will.not.require.that. extra.work.be.performed.to.make.up.for.lost.production. The.ultimate.goal.of.JIT.and.Lean.system.deployments.is.to.continuously.move. the.production.of.work.from.larger.lots.or.batches.toward.a.single.unit.flow.production.system.in.which.the.size.of.a.lot.is.one.unit.of.work..The.advantage.of.single. unit.flow.systems.is.that.they.enable.the.dynamic.matching.of.supply.or.capacity.to. external.demand..In.these.systems,.a.product.or.service’s.lead.time.will.be.reduced. to.that.required.to.produce.a.single.unit.of.different.production.sequences.of.products.and.services..The.result.will.be.lower.inventory.or.other.resource.investment. and.higher.customer.service.levels..Figure.3.18.shows.a.unit.flow.concept.from.a. slightly.different.perspective.using.invoices..This.concept.can.be.seen.when.a.person. goes.to.an.airport.kiosk.and.obtains.a.boarding.ticket.or.requests.upgrades,.earlier. flights,.or.other.services;.this.is.single.unit.flow.production.because.different.jobs. or.requests.for.boarding.assignments.are.processed.in.unit.flow.quantities.person. by.person.if.kiosks.are.available..An.alternative.system.is.to.require.people.to.queue.

98  ◾  Lean Six Sigma for the Office

up.behind.an.agent.for.various.types.of.services,.some.of.which.require.waiting.in. different.lines.

Mixed-Model Scheduling
As. lot. sizes. are. reduced,. a. production. system. will. be. able. to. move. toward. a. mixed-model.production.schedule..Some.of.the.characteristics.of.such.a.scheduling. system.were.implied.in.the.previous.discussion.of.lot.size..Our.purpose.here.will. be.to.demonstrate.the.mixed-model.scheduling.concept.using.the.simple.example. shown.in.Figure.3.19..In.this.example,.it.can.be.seen.that.five.products.or.services. labeled.A,.B,.C,.D,.and.E.are.produced.over.five.working.days.using.batched.and. mixed-model.production.schedules..In.the.batched.schedule.system,.the.lead.time. to.produce.a.product.is.five.working.days.because.each.of.the.five.products.requires. one.day.to.meet.its.production.schedule..However,.in.the.mixed-model.production. schedule.it.can.be.seen.that.the.lead.time.is.reduced.to.just.one.working.day,.or. by.80.percent,.as.the.production.sequence.becomes.hourly.rather.than.daily..This. implies.that.the.lot.sizes.of.the.five.products.are.also.reduced.by.80.percent..The. advantage.of.a.mixed-model.production.scheduling.system.is.that.it.can.dynamically.respond.to.changes.in.external.demand..As.an.example,.if.the.demand.for.a. product.A.temporarily.doubles,.then.its.production.amount.can.be.immediately. increased.if.its.subcomponents.are.available..Alternatively,.if.demand.temporarily. decreases,.then.product.A’s.production.amount.can.be.immediately.decreased.

Supplier networks and Support
A.supply.chain.should.be.integrated.through.operational.competencies.and.contractual.obligations..In.other.words,.the.creation.of.high-performance.supply.chains. requires.that.all.their.participants.work.together.to.enhance.their.productivity.and. shareholder.economic.value.added.(EVA)..In.addition,.Lean,.Six.Sigma,.and.similar. operational.initiatives.should.be.effectively.deployed.by.the.participants.of.the.supplier.chain..Supply.chains.should.promote.mutually.beneficial.activities.between. participants,.rather.than.being.dominated.by.the.interests.of.a.few.large.organizations.. A. supply. chain.becomes.noncompetitive. as. external.competition.increases. when.dominant.organizations.pass.on.their.operational.inefficiencies.to.other.participants..In.these.situations,.a.dominant.organization.has.no.incentive.to.improve. its.operational.efficiency.when.it.passes.on.higher.production.costs.to.its.suppliers.through.price.and.other.concessions..In.some.industries,.this.practice.results. in.deterioration.of.a.supply.chain’s.ability.to.invest.in.infrastructure,.people,.and. equipment..In.the.final.phases.of.this.deterioration,.the.profit.margins.of.all.supply. chain. participants. eventually. become. threatened,. and. more. efficient. competitive.

Lean Six Sigma Basics  ◾  99

Day 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 3 3 3 3 3 3 3 3 4 4 4 4 4 4 4 4 5 5 5 5 5 5 5 5

Hour 1 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8

Production Sequence

Mixed-Model Sequence

A A A A A A A A B B B B B B B B C C C C C C C C D D D D D D D D E E E E E E E E

A B C D E A B C D E A B C D E A B C D E A B A B C D E A B C D E A B A B C D E A

Figure 3.19

7.j.1. mixed-model scheduling.

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Fabrizio.presented.process.into. 5S for the office: Organizing the workplace to eliminate waste. create.a.Lean. istake. The..cost.eliminated.metrics.A.Morgan. (VA).and.quality.work. adding.organization’s.also. recommended.the.flow..discuss. and. to.value..workflow.provide. organization.system’s.be.resource. James.The.. River.shown.context.reduced. Eliyahu....analyzed. were. an.major. supplier.was..Goldratt.been. not.2008..resources.constrain.and.2nd.and.be.in. to..an..of.path.be.the.then. work.Lean Six Sigma for supply chain management.the..process.numerous.These. should.improve.improvements. in. and automating processes.Harmon.It.Martin. James.cycle.Several. process.this.(EVA).Liker..Barrington..tasks.This.Business process change—A manager’s guide to improving.chapter..2007.to.of. to.networks.its.tasks..were. and.Hines.as.improvement.complexity.a. to.Paul.value.Jeffrey. Paul. York:.In.that..prior.York:..work.Hall..New.2005.through.tools.non-value-adding.it. value.Auerbach.a.be.NVA.for.possible. simplify.was.to.W. were.be. identify.its.1986. business. high-performance..Iwao.their.The Toyota Product Development System. step.(VSM). Lean.this...created.work.MA:.eliminated.Operational. be. and.decrease..Hall.process..Press...a.North.remaining.that. (BVA). applied. and.methods.reduced.is.the..translated.and.of..processes. Don.time.A.New.system.certain. this..future..system.York:.if..its.It.a.projects.and. Jones.San.tasks.improving.Press...will.New. assessment.time.106  ◾  Lean Six Sigma for the Office information.concepts.In.ed. operational.to. tasks. that.a.improvement.added.Productivity.Great.and.NVA.. and.system’s.flow. Dan.key.breakdowns.Cox.Lean. be.Operational excellence—Using Lean Six Sigma to translate customer value through global supply chains.path.can.and.the.together.so.accelerate.Nick.their. through.also. activities.to. shareholder.financial.process.takt.economic.work. an. by..non-value-adding.. workflows.operations.will.internal.to.system’s.enhance.methods.also. James.Jeff.and..all. utilized.York:.waste. Tapping.obvious..pull. can. Thomas.analyzed...Martin.projects.deploying.a.W.complexity. chapter.presented.it.Richard. and.sequence.1995.Press. on.in..map. Cousins. Peter.system’s.proof. methods.discussion..Francisco:.including. stabilize.stream.The goal.. takt.Productivity.identify. m .work.operational.Publishers.is.Press.major..in. Kobayashi.to.system’s.will.has.work.critical.describes.2000. 2006...should.be.(NVA).2003. are. ..the..process.productivity..York:.information.Upper.was.were..that.continued..critical. adding.of.the.useful.to. standardize.once.made.VSM.through.. to.Rich.New.The.. improvement.M. redesigning.Prentice.mentioned.Saddle.McGraw-Hill.Augustine.River. value.the..York:..Kaufman.and.workflows.Morgan. eliminated...New. Lamming.also.Prentice..used.20 keys to workplace improvement...and.creation. focus.in.2006. Suggested reading Sanjiv. Value stream management.K..process.VSM.time.M.bottleneck. that.Managing agile projects.a.work.. first.is.Productivity.NJ:.New.A.any.which.parties.a.to.

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and.and.prepare.Sigma. and.different.supply. workshops.for.to.the..situations.too.However.Lean.experience.be. in.discuss.understand.and..from.projects..or.a.five-month.a.should.thousands. environments.be.Six.useful.office. and. analyzed.required.Lean.due.organizational. event.to.step-by-step. improve.is..a.to. always.and.process. analyzed.useful.Kaizen.execute.process.that.many.and.be.time? In.the.in.of. improvement.understand. only.problem.and.be.Chapter.events.across.However.of.summary.problem-solving. events.have. overly.larger-scale.discussed. been.created. office.resources.of.discussion.Chapter 4 Kaizen eent planning oeriew Kaizen.this.is. in.are.methodology. to.improvement. and.causes.matter.projects.complicated.process.important...of.this.to.the.Understanding.environment..within.approach.approach.problems.and.. an.that.Six.many.will.applicable.eliminated. how. is. a.. problem-solving.projects.on.every.to.necessary.office.up. deploy.are. to.more.very.5.to. are. methodology. which.their.more.many. an.It.conduct.breakdowns..are.. 111 . across.tools.not. project.activities..can. improved.Bringing. improvement.Kaizen.three-.problem.to. not. important.chains. activities.chapter.focused. processes.are. processes.In.will.Our.to.Kaizen. waste.that.would.and.process.. rapid. Sigma.a..events.perhaps.in. communication.percent.statistical.few..that.80.days.a.days.my.and. are.an.boundaries. identify.the.with.require.. usually.the.In.successfully. complicated.plan. because.for.will.root.improvement.In. valuable.show.characteristic.people..the.in.interact. improvement. I.should.have.many.departments. is.global.cultural.process.who.Lean.found.This.way.we.issues.In.noted.most.we. necessary. projects.perspectives.causes. methods.which. complicate.basic.tools..fact.in. Why.process.within.of.solution..are.

form.”.four.paced.”.structured.discussion.of.shown.are.of.”.to.sections.is.. goal.a.“preparing.it.for.with.supporting.planning.teams.It.4.“presenting.the.containing.4.into. Conduct the Event a b c d e f g h i 3.result.presented.events.to.and.For.divided.execution. Present Findings a b c d a b c Wednesday AM Wednesday PM Thursday AM Thursday PM Thursday PM Thursday PM Friday AM ASAP ASAP ASAP 4.Kaizen.and.rapid.people.concepts.adversely.include.discussion...if..an.continuing.very.activities.will..planning. sections. Our.impacted. carefully.for.of.be.“conducting.The. Follow-up Figure 4.completed..These..of.the.may.activities.will.event.the..Figure..1.Kaizen.list.within.this.very.days.sets.Chapters. will.members.is.be.schedules.of.these.coordinated.in.Kaizen.subsequent.each. including breakout rooms Ensure support personnel are available to assist the team Collect process information of floor layouts.to.sections.on.require.major.activities.will.1.be.are.in.for.be.will.the.Lean.in.and.emphasis.that.Chapter. . work flows..on. and procedures h Collect information of operational cycle times including: Setup time Processing time Inspection time Transport Waiting i Take pictures of the area to be improved j Obtain example of process breakdowns k Obtain examples of best in class process conditions l Develop schedule of Kaizen event m Communicate the event n Mark area for event if practical o Setup flip charts and organize other materials as required Bring team together to discuss roles and responsibilities Discuss objectives of Kaizen event.”. chapters.3.These.Sigma.reason..our.major.Kaizen.several. the.Also.sequential.two.with.event.As.1 Kaizen eent checklist.important. be.deployment.a.plan.Lean.poorly.basis.their.to. Prepare for the Event Activity Code a b c d e f g Days 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 Required Activity Comment Select project charter Assign project leader and team members Reserve a conference room Obtain supplies and equipment Ensure facilities are available. several.follow.findings.of.events.build.involvement.event.days.112  ◾  Lean Six Sigma for the Office Major Phase 1.Six.“follow-up. shown.event.the.events.first.fast.the.team. financial and operational Conduct training as required Create detailed value stream maps and layouts of the process workflow Facilitate to ensure full participation of team Collect data at every operation relevant to: VA/NVA/BVA Production rate (units/minute) Scrap % Rework % Downtime % Capacity (units/minute) Setup time (minutes) Inventory (units in queue) Floor area Analyze all data and develop prioritized improvement ideas Change the process according to prioritization listing Apply 5-S and mistake-proofing methods Develop a presentation of all analyses and implementation activities Develop lessons learned (what did and did not work) Develop ideas to leverage improvement ideas Present findings to management Complete all prioritized improvements not completed during Kaizen event Communicate the Kaizen event results Celebrate with team Monday AM Monday AM Monday AM Monday PM Monday PM Tuesday AM/PM 2.

area.required..financial.and...in. entitled.the. a. and.well.activities. objectives..of.a.to.an.resources.responsibility. “presenting.be.a.purpose.to.and.In.as.In..will.prioritization.weeks.with.except. the. their.analysis.event’s. The.resources.resources.Kaizen.across.These.and. are.deployment.problems..as.tools.project.events. developing.a.that.to. facilitator. the.tend.project.enables.8.they.of.the. a.also.an. aligned.information.Kaizen.by. these.. to.discussed. leader.Additional..will.owner.is.because.the.activities. as.team.charter. objectives.process.these.the.on.important.environment. prior. information.based.the.as.This..in.and.have..their. required.discussed.. d .and.the.where.bringing.have. a. iscussed.improvement.common. required.on. in.a.noted.and.these.an..team.to.1.of.5.data. Recall.chapter.support.focus.the.members. the. an.people.several.begin.together.should. “follow-up”.examples.and. personnel.will. of. assigned.organization’s.the.factor.to.involved.to..that. will.a.objectives. chapter.teams. be.Their.their..be.important.as.. that.charter.for.be..deployed.work.This.. business.goals.and.that.as. Table..context. securing..these.business.Kaizen.accelerate.major. supporting. core.deployment.. creation.identify.in. an. incorporated.responsibility. Chapters.due.collection.team’s..the. assigning.describing.other.as.statement. also.reason.leader. very.availability. charter.important.project.leader. a.members.describes. 2.be..event..leaders..busy.will.their.benefits.6.Important.problem.be.a..have.particularly.preparation.are.professionals. members.well. charter.preparation. Event. and.The.organization.developed.and. and.analysis.root.to.prior.The.activities.in.separately.project’s. with. The.the. prepare for the Kaizen eent We.team.project’s.the.and.of. help.activities..facilities.many. sales.organizational. a.team.activities.first.improvement.for. into.identification.metrics. workflows. organization’s. product.data. who.organizational.also.project.. the.anticipated. event.a.is.event.Also. the. and..operational. project’s.are.historical.charter..also.the.help.office.charter.procurement.in.local.along.activities..several.importance.deployment.It.is. and.the.selection.several. project. in.office. accounting. discussed.will.Once.activities. for..support.the. by.improvement. should.reflected.improvement.be.events.team.these..event. .is. that. be. marketing.Identifying. project.project. actionable.this. team.of.the.team’s. an.charters. goals.should..and. are.Kaizen..analysis.business.collection.leaders.many.this.obtain.the.. finance. and.to. strategic.related.preparation.workflows.deployment.the.that.the.major. and. should.working. team.execute. sections.4.activities.an.team’s. to.activities.These.to. members.improvement.. its.information.is.project.of. include.This.concepts. human.and.with. Kaizen.to..discussed.to. team. findings”.gathered.described. begins.is.already.advance.The. activities.should. as.of.section.functions.rapid.provide.of.communicating.. listed.which..the. prepare.well.are.ensuring.and.an. include.cause. includes.several..a.ensuring.data. design. in.several.process.team.required. for.In.The.efforts.Kaizen Event Planning  ◾  113 discussed.success.focus.communicating..have.Chapter.weeks. are.describing.benefits.methods..organization.is. members. anticipated.

supporting. b. Take pictures of the area to be improved.balance.a.a. a. recommendations.and. c. Obtain example of process breakdowns.workflow.to. Collect information of operational cycle times including: Setup time Processing time Inspection time Transport Waiting i.one. currently. and.its.. those.dispersed.China. of. critically.when. that. facilities. work flows.leader. meeting.the.team.An. materials. if.video. j. Select project charter.the.teams.located.of. creating. and..location. replace. l. Reserve a conference room..in.facilities. Relative..locations.In.need. and..planning.but.and.one. Develop schedule of Kaizen event. e. other. .may.may.providing.the..they. n..In. exist.activities.or..other. Obtain supplies and equipment. conferencing.these.. more.confirm. geographically..in.adding. is.group.make. if practical.most.client-facing. but.efficient.other.. Other.United.process..be.activities.at.for. is. new. are. ituations. information. entirely.be. or.. Mark area for event.situations.or.is.example. services.across. h. o. deleting. Ensure support personnel are available to assist the team.or.would. k.the. different. Video.the. or.with. conferencing.In.portion.India. operational.deployment.analyses.to.a.world. f. s . Assign project leader and team members.to. m. situation.include.root..important.may. their. one. workflows....the.that.part.cause.of.and. d.114  ◾  Lean Six Sigma for the Office table 4.of. and.Modifications.necessary.the. every.include. audio..world.. the.States.in.but. activities.operations. g.need. include.resides.supplies. Set up flip charts and organize other materials as required. rooms.materials.. important.workflow.the.these. team.organizations.situations.activities. Communicate the event.eliminating.be.1 1.be. important.of.workflow.working.operational-facing. Obtain examples of best in class process conditions.across. reserving.purchasing.resides. sequences.changing. prepare for the Kaizen eent a.these.audio.the..say. preparatory. to. Collect process information of floor layouts. adding. authorizations.core. and procedures.improvement.modified.capability. Ensure facilities are available including breakout rooms.communication.catering. to. approval.and.

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Collect Information on Operational Cycle Times Conducting.. To..improvements.when.a.why.Also.attention. on...Chapter. a.one.time. include. Kaizen. approval.these.or.focused..map. through. Continually.locations.on.. which.Also.information.engineering. analysis. to.reports.(WM). from.an..nonstandard. improvements.changes. build.transactions. to. tools.percentages. exception.monitoring.Kaizen.with.activities...elimination.basis.most.to. which.As.is. workflows.some.and. built-in.office. entering.capability.. time-stamping. is.using.a.may. IT.team’s.been.equipment.an.to.added.to.be. are.system.time. on.IT.business.However.basis. a.improving.make.An..fields.information.very.electronically.will.obtain. move.office.and.non-value-adding.having.to..were. in.to.these.the. in..stamps. that.for.fields. verifications..be.some.to. straightforward.relative. were.systems. business.As.systems.is. modern.to.technology.is.environments.experts.temporarily.In.identified.Finally.in.information.major.focused.example.an.of.3.and.be.IT.120  ◾  Lean Six Sigma for the Office the. C .be.or. one. improvement.can.be.may. simplification.useful.these. manufacturing. entire.significantly. sequence.important.download.This.in.systems.Typical. Technologies.in. times. the.Several.department.process.management.other. time.department.future. key. quickly.deployed. process.value-adding.(BAM).other.integrated. information.interim. they. the.data..in.the.collection.outsourced. tasks. discussion. rearranged.data.(BMA).(BI).(IT).relative.systems.can.several. Kaizen.or. the.help.may.deleted.improve. record. procurement. a.be.process.In.a.office.described.also.may.environments. work.can.these.data. metrics.may. fields.of. addition. between.IT.environment.a.these.There.information.implement.teams.on. tools.temporary.include.provide.activities.operations.be.in.amounts. Process.on.new... “10.on.systems.used.modeling.often. In.These.world. some. data.using.tools. cycle.tasks.This.for..recent.some. its. between.provide. to.workflow.easy..metrics.an. activities.also. another.focusing.work.systems.system. providing.stamps.these.entitled.second.or.more.IT. cause.and.to.flag.collection.data...tracked.components. the. Update. team. physically. stations.business. collected. Process.(VA).to. around.modified. with.”.analysis.manually.expanded.. by.(NVA).work.(VSM). operations.metrics.of..in.systems. transactions. event.improvement.discussed. .value...example..manual..stamps.context.data.that.minutes.in.analyst.analysis.has.were.operational. a.are. are.some.be.be.. operation..of..in. Also. process.need.events.a. collection.within.workflows.an.areas.major.placed. also.enable.3..improvement.forms..can.require. operational... root.office.of. that. work.manually.this.significant. hapter.team. related.section.systems.many..through.need. mistake-proofing.either..be. standard.tracked.could.workflow.could. transaction.can.example. summarize.to.Kaizen. work.implemented. record..IT.As.be.activity.In. details.partitions. Data.analyses.temporarily.be. characteristics.years.to.to. as. a.would..stream.be.the.In.office.in.that.a. process.Kaizen.and. and.and.team. moved.of.intelligence.help.of..to.examples..of.fact. or.invoices. system.relatively. them..collection.include..design. operations. within.Kaizen. and. a. and.example.process.a...to.design.that.specialists.

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and..analyzed.Kaizen. as.Sigma. 6.an.Table.concepts.Lean. Lean.then.important.process.properly.including. basic.members.event.required.This.to.both.this.just.important.their.has.they.been.an.3. the.a.made.experience. and.from.linked.of.a. the.through.designed. using.workflows.operational. of.VSM.the.of..VSMs..or.because. can.forms. present. VSM.of.analysis.tools.good..then. of.several..process.provides.team.fact. tools. on.data. flows.tools.constructed.that.of.and. Building.balanced. work.non-value-adding. should.if.a.and. facilitation.well-established. in. machines.Six.Sigma.required.and.VSM.It.include.extra.processes.floor.to.(VA).data.that..is.a.tools. understand.need.is.that.layout.a.methods.the. collect.to.Kaizen.. a.that. operations. process. Create Detailed Value Stream Maps and Layouts of the Process Workflow In.be. it.will.specific.that..been.a.a.(customers).to.its.ensure. people. data.a.collect.or.facilitated.. arrangement.addition.be.the.integrated. 5. A. the.and.to.team.3.are. a.and.To.the.the.be.also. when.for..to.are. incorporated. and.and.enable.team’s.data. that. orkflow.and.(suppliers).listed..manage.single.methods.to..event.It.Sigma.a..discussed.basic. equipment.updated.. activities.similar.is..provide.4.participation.useful. to.in. transactions.is.be. that. and.its. some.concepts. collected. into.the.(NVA).3.. as. Chapters.collection. The.Kaizen.should.good. be.identify.metrics.in.of.be. operations.immediately.to.be.its. of.more. Kaizen.team.and.are.with. The.team. operational.process..members.shown.voice.developed. show.upstream.support. system.training.data.no.analysis.fact.few. may.VSM. represent.Chapter.support.Lean.a.their.should.operational.Lean.operational.is.ensuring.Lean.an.if.process.These.Six.analyzing. ollects.team.Six..noted.operation.more.reports.quantify. amount...VSM.important.facilitation.there.trained. or. additional. and.other.have.operations.properly. and.Once.idea. well. goes.team.useful. participation.the.its.operational.collection.and.Sigma.to.those. out.of.than. c . the.training. to. initial.ensure.agenda.the.As.quantitative.flow.within. (VOC).the.improvements.bare.few. data.the.facilitators.of. includes.and. Six. Facilitate to Ensure Full Participation of Team A.3.cycle. w .organized.customer. to.be.metrics.focus.materials.similar. VSM.data.within.downstream.process.be..with.to. placed. members.been.the. begins...all.Kaizen Event Planning  ◾  129 of.Chapter. training.minimum. be.that.methods.during.full.use.example.depend.analyze. team. a. approach.workflow.discussed.In.context..value-adding.to.is.methods.is.that. and.assigned.level. have.versus.team.where. advantages.of.people.will.a.required.team..must.the. members. the. will.an.tool.process..full.used.which.that.in.of.competence.and.. process. into.information.times.also.must.a..team.members.on.Chapter..a. .will.review.the.rate.have. methods. team..the.operations.In. throughput.we.Kaizen..

process.. important.work.event’s.internal.its. An. Keep the event’s schedule and make adjustments based on changing circumstances.to.event’s.event’s.facilitation.. to.facilitators.to.proper.roles.it. measure..external. The team should be facilitated be people familiar with team activities and dynamics.for.experienced. agenda.and.scope. responsibilities.may.that.an.enablers.facilitation.and.. team.properly.and.important.Kaizen. 10.project.the.or.the.in.speak. Table.agenda.important.result.be.consist.method.members.event.facilitation.as.Once.activities. and activities.with.methods. comprising.Experienced.identification.activities.. selected.130  ◾  Lean Six Sigma for the Office table 4.means.do.execution.balanced.This.the.in.the. 9..in.useful.in..communicates.keep.within. the.and.Also.and.ideas.responsibilities. event.expectations.As.to.a.their.In. a.opportunity.real.charter..member’s.be.problem.the.phase.scoped.a. up.styles.participants.4.a. be.First.and. an.process.necessary.to.changing.of.4.their.planning. members.event.with.facilitated.people. enable.As.and.are.an. over.is.for.an..of.well. days.charter’s.who.schedule. is.methods.the.use.it..should.to. to. Facilitators should obtain team feedback every day and make improvements to the Kaizen event as necessary.be. and changing their process. .the.a...organization.a. 2. 6.team. The Kaizen team should be selected to reflect the project charter’s scope and process boundaries... data collection.a.is.is. The Kaizen event should have a prepublished agenda with roles. Team members should fully participate in team activities.people. The team should be balanced relative to its experience and work styles.facilitation.respect. meets.4 important eent Facilitation methods 1.reflect.some.an.boundaries.In...experience.is.and.to.front.. team.suppliers.. it.important.business.that.. of.of.is..team.work.the.everyone. event. Team members should be trained as necessary in the proper use of tools and methods for problem identification.of. quantified.to.their. the.addition.group.event’s.be.The. to.its.minimum. process.collection.important.the.lists. 7.analysis.at.as.events.fully.the.scheduled..dynamics.event.a.and.An.that. 3.more.as.team. success.of. analysis.should.also.of..reflect.coordination.should. is.addition.contribute. activities. A project charter should reflect a business opportunity and be scoped for execution over several days.integral.team.operations.it.team’s. 8. 5.the.process..with. and. trained.Kaizen.by.. Second..everyone.adheres.team.and.occur..customers. several. an.prepublished. be. 4.several.fifth.a.. that.encouraged.use.scope.that. Kaizen.members.managing.to. Celebrate success! for.tools.a.example..team. project.participate.part.of.ensuring. the..should. important.data.

system....based.of. to.this. in.construction.times. of.low. or.estimating.heavily.flowing. lists.should.5.However.value.for.this.modifications. because. machines.(IT). requires.downloaded. process.will.These. metrics.a.and. technology.we.on.This.an.be.are.Finally. team.do.analysis. begins.example..by.on.team. information.4. Collect Data at Every Operation Table.employee.In.every.most.in. several.Kaizen.is.changing. in.in.at. process.on.event..as.Chapter. (IT). other.a.we..for.systems. across.especially. of. of.advance.team.easier.by. At.operations.days.single.or. to.analyzed. strategies. designed.other.. developing.discuss.a.facilitators..Kaizen.information. shown.time. makes..office. Kaizen. of. collection.of.In.to.section.enable.. examples.standardization..usually.also.activities.other.collected.a. are.office.and...estimated.of.This.between.demographical.to. key.a. This.customer.clearly. collection...schedule.type.accessing.be.stratification. and.collection.event.relationships.data.a. repetitive.map. people. or.is.production.which.. work.to.a....each.calculation. that.a. of.day.end.can.analysis.to.data.job.by.In.event.of.system..working.dependent.shift.to..adjustments..information.reason.a.VSM.hours. the.by. activities.build.benefits.in.a.4.team. .were.factors. operational. occurs.than.circumstances..This. Low.of.is.an.used.transactions.machine.an.obtain. face.can.be. a.production.and. analysis.and.a.should. will.established. one.For. sampling. environment. capture. Table.... work.event’s..quantifiable.5.relevant. collection.from.their.opposed.of.cycle.these. metrics. an.However. the.be.day..workflow.be.counting.reward.at.data.to. standardization.and.performance.As.successful. it.to.or.to.IT.Kaizen. As.. a. business.that.systems.the.objectives.is.of. execute.that. fast-flowing.time-stamp.One.a.related. focus.team.transactions. cycles.habits..difficult. team.associated.provide. and.layout. than.in.the.the.and.work.used. challenges.a.production.inputs..by.of.in. the.by.work.rate.take.information.This.because.production.is.their.outputs.it.rates. rate.floor.systems.a.employees.process.a. between. second.to. nine.estimated. tasks.idea.true. in.listed..are.information.how.Table.a. words.first.provides.can.be.will.processes. also.a..stream.collection. systems.the.rates.the.systems.within.information. detail.may.. collect.5. similar.material.. standard.can.and.information.schedule.relative. are. office.of.Kaizen Event Planning  ◾  131 an.dividing.important. machine.collected.also.good.of.the.professional.a. people.weeks. they.will.labor..3.it.the.collect. and. physically.client-facing. metrics.or.backoffice.approximation.its.can.the. that. of.operations.focused.useful. flow. be.measuring.In.can. information.collect.then. rather.process.and.of. data...level.exiting.Kaizen. information.levels.to.the. machines.is.also. level.analysis.As.this.a.will. technology.characterized.strategy.process.design. data.of. the.high.recognize.collect.and.experienced.production.be.undertakes. more. more.enable.on.important. data. can.habits. data. and.made.the.transformed..4.this.data.area. feedback.operation.with.to.and.

customer and other demographical factors which will enable a complete analysis (This type of factor stratification strategy can be used in the analysis of all 9 metrics. Check financial and operational reports for material or direct labor rework. i. the system will time-stamp all transactions within a process workflow. People can also be “shadowed” for several days and their activity times recorded at 15-minute time increments. marketing prototypes not sold. re-inspect. and shadowing to identify rework. This can be done by operation. job type. Audit operations through interviews. Alternatively. e-mail audits.table 4. Then “walk-the-process” to verify the VSM. any work task with a prefix of re such as re-analyze. Ideally. Count the number of transactions that passed through process operations more than once. reports that were not required. Metric Data Collection Strategy 1. and shadowing to identify scrap. materials processed by equipment could be measured or counters designed into equipment can be checked to calculate production rates.e.) 3. Rework%. 132  ◾  Lean Six Sigma for the Office 2. an audit could be done on completed transactions in e-mail by operation (sent mail). . Audit operations through interviews. redo. Production rate (units/ minute) or operation cycle time. e-mail audits. employee. Count the transactions exiting the process and divide by the hours or operation. etc.e. Check financial and operational reports for material or direct labor waste. 4. Also. i. time of day.. With respect to equipment. Scrap %.5 How to Do It data Collection Strategies in Serice operations Bring the team together and create the VSM using sticky notes on a wall. checking personal calendars will show meeting times that in many situations are non-value-adding. Count the number of transactions that could not be used in production. Create a value stream map of a process workflow or a floor layout of a single work area. shift.. etc. VA/NVA/BVA.

Count the time people wait for work. Count the number of units per time produced at the system’s bottleneck operation. Measure the floor area used by a process. Measure the time to set up a job at every operation and especially at the bottleneck. Review floor layouts and calculate area. Setup time (minutes). If operational reports are not available. Audit operations through interviews. 8. Check financial and operational reports for material. direct labor. Measure the work waiting to be done at every operation. Use a VSM with operational reports to identify the bottleneck capacity under typical production conditions. Floor area. and other expenses related to downtime. 9. and shadowing to identify inventory levels. or equipment is not available. the system is idle. conduct audits to obtain data. Inventory (units in queue). Check operational reports for inventory levels (jobs waiting to be completed and estimate how long it will take to complete these jobs). and shadowing to identify downtime. Capacity (units/ minute). Check operational reports for job setup times. Audit operations through interviews. Downtime %. Audit operations through interviews. and shadowing to identify job setup. e-mails. including equipment and people. 7. e-mails.5. e-mail audits. 6. Kaizen Event Planning  ◾  133 .

134  ◾  Lean Six Sigma for the Office

At.a.more.detailed.level.of.analysis,.information.can.be.controlled.by.auditing. and.taking.samples.of.transactions.at.an.employee.level..These.completed.transactions. could. include. analyzing. the. types. of. e-mails. that. are. routinely. handled. by.employees.and.classifying.them.based.on.various.stratification.criteria..As.an. e . xample,. e-mails. could. be. classified. as. value-adding. or. non-value-adding,. and. according.to.their.reason.for.being.sent,.the.departments.involved.in.the.e-mail. transaction,.the.estimated.time.spent.on.each.e-mail,.and.similar.demographical. information..In.addition.to.these.types.of.audits,.an.analysis.of.personal.calendars. will.show.the.number.of.employee.meetings.and.time.duration..This.information. can.be.further.broken.down.by.classifying.meetings.based.on.their.value-adding. content,. reasons,. and. demographical. factors.. Also,. it. is. not. unusual. to. find. that. employees.spend.between.25.and.75.percent.of.their.time.in.meetings..Based.on.my. experience,.most.meetings.are.poorly.organized,.facilitated,.and.managed,.resulting.in.a.significant.loss.of.employee.productive.time. Another.useful.method.that.can.be.used.to.collect.operational.data.from.office. workflows.is.the.shadowing.of.people.for.one.or.more.days..In.shadowing.activities,.people.are.audited.for.several.hours.or.days.and.their.activities.are.recorded. at.sequential.time.intervals..Shadowing.has.been.successfully.used.in.manufacturing.for.many.years.to.observe.and.improve.work.tasks.of.production.workers.as. well.as.manufacturing.professionals..In.an.office.environment,.it.requires.that.an. analyst.sit.within.an.employee’s.work.area.and.record,.at.15-minute.intervals,.the. e . mployee’s.work.activities..This.information.is.related.to.how.and.why.the.work. activities.are.performed..This.information.is.analyzed.to.determine.the.percentage. of. value-adding. versus. non-value-adding. work. content. as. well. as. the. cumulative. time. duration. of. major. work. activities.. Shadowing. also. brings. an. analyst. into. close.proximity.to.the.employee’s.work.tasks.and.their.interrelationships..As.part. of.shadowing.activities,.layouts.of.work.areas.can.also.be.created,.and.samples.of. reports,.data.entry.screens,.and.other.informational.tools.can.be.collected.and.used. as.examples.of.how.the.work.is.actually.done. Depending.on.the.particular.industry,.office.equipment.may.either.be.a.major. or.incidental.part.of.a.process.workflow..In.this.context,.if.a.certain.type.of.equipment.has.a.major.impact.on.an.office.process,.then.its.production.rates,.availability,. ease. of. use,. and. similar. information. can. be. collected. and. analyzed. to. improve. operations..A.photocopier.is.an.example.of.a.piece.of.equipment.that.may.periodically.become.a.bottleneck.with.respect.to.the.flow.of.materials.and.information.. Equipment.audits.can.be.done.using.sensing.devices.such.as.counters.to.calculate. transaction.or.production.rates.through.the.equipment.or.using.a.physical.audit. Scrap.and.rework.from.office.processes.can.also.be.measured.and.analyzed.for. improvement.opportunities.by.a.Kaizen.team..Whereas.scrap.must.be.thrown.away. and.replaced,.rework.is.work.that.must.be.done.more.than.once.due.to.an.error.. Percentage.rework.is.estimated.by.counting.the.number.of.transactions.that.passed.

Kaizen Event Planning  ◾  135

through.the.operations.of.a.process.more.than.once..Rework.is.usually.associated. by.words.having.a.prefix.of.re-,.such.as.reanalyze,.reinspect,.redo,.etc..Another.way. to.estimate.scrap.and.rework.amounts.and.percentages.is.by.analyzing.financial.and. operational.reports.for.variances.in.material.and.direct.labor.that.have.been.classified.as.scrap.or.rework..These.metrics.can.be.measured.in.absolute.amounts.such.as. pounds,.dollars,.labor.hours,.and.similar.financial.and.operational.units.or.volume. adjusted.by.converting.them.into.percentages..Office.examples.include.paper.that. is.thrown.out,.obsolete.promotional.literature,.and.similar.materials..Operations. containing.scrap.and.rework.can.also.be.identified.using.interviews,.e-mails,.audits,. and.shadowing.people. Downtime.or.unavailability.percentages.can.be.estimated.in.a.manner.similar. to.scrap.and.rework.percentages..They.are.also.directly.related.to.a.system’s.capacity.. Maintenance.logs.can.be.analyzed.in.situations.in.which.equipment.downtime.is. suspected.to.be.a.problem..In.a.different.context,.records.related.to.tardiness.and. absences.can.be.analyzed.to.estimate.the.availability.of.people..Operational.audits. are. usually. required. to. break. these. larger. components. of. downtime. or. unavailability. into. lower-level. root. causes.. Capacity. is. also. an. important. Lean. metric. that. measures. the. degree. of. process. simplification,. standardization,. and. mistake. p . roofing..Operational.capacity.increases.when.materials.and.labor.are.effectively. utilized..Recall,.from.Chapter.3,.that.a.system’s.throughput.rate.or.capacity.was. constrained.by.its.bottleneck.resource..For.this.reason,.improvement.efforts.should. begin. at. a. system’s. bottleneck.. In. summary,. a. system’s. capacity. is. estimated. by. a . nalyzing.the.throughput.rate.at.its.bottleneck.operation. A.bottleneck.operation.should.be.analyzed.using.a.VSM.and.the.nine.metrics. listed.in.Table.4.5..In.addition,.a.Kaizen.team.should.directly.observe.a.bottleneck. and.estimate.its.capacity.under.typical.production.conditions..It.should.be.noted. that.an.indication.that.an.operation.may.be.a.bottleneck.is.the.presence.of.large. amounts.of.work.(inventory.in.manufacturing).in.front.of.an.operation.waiting.to. be.processed..Typical.bottlenecks.found.in.office.processes.include.managers.who. fail. to. sign. off. on. reports. in. a. timely. manner,. people. who. work. below. standard. production.rates.and.hold.up.everyone’s.work,.and.equipment.or.IT.systems.that. are.not.available.or.online.to.do.critical.work. Recall.that.in.Figure.3.9.work.tasks.within.operations.were.broken.down.into. several. time. components,. including. setup. time.. Although. any. time. component. other.than.processing.is.normally.non-value-adding,.setup.time.is.usually.tracked. separately.because.it.increases.the.scheduling.flexibility.and.capacity.of.an.operation..This.enables.a.process.to.move.toward.a.mixed-model.scheduling.system..A. mixed-model.scheduling.system.was.discussed.in.Chapter.3.and.shown.in.Table.3.9.. In.manufacturing,.the.overall.job.setup.time.is.easy.to.measure.because.the.start. and.end.points.of.a.job.are.recorded.by.manual.or.automated.systems..However,.a. careful.study.is.required.to.quantify.the.various.activities.required.to.set.up.a.job.

136  ◾  Lean Six Sigma for the Office

and.calculate.its.time.duration..In.office.processes,.information.related.to.job.setups. will.not.be.available.unless.transactions.are.time-stamped.by.information.technology.(IT).systems..Common.methods.used.in.office.environments.to.estimate.setup. time.include.analyzing.operational.reports,.job.shadowing,.time.and.motion.studies,.and.conducting.periodic.employee.interviews. “Inventory”.is.the.eighth.metric.listed.in.Table.4.5..Inventory.correlates.to.several. of.the.other.metrics.listed.in.the.table..As.an.example,.if.there.are.two.days.of.inventory,.in.front.of.an.operation,.then.lead.time.can.be.estimated.as.the.processing. time.of.the.inventory..A.system’s.total.lead.time.can.be.estimated.in.a.similar.manner.operation.by.operation.along.the.system’s.critical.path..Inventory.levels.for.each. operation.are.estimated.by.counting.the.number.of.units.in.front.of.an.operation. during.a.Kaizen.team’s.VSM.activities..This.is.done.by.dispersing.the.team.across. a.process.to.collect.the.metric.information.listed.in.Table.4.5..The.last.important. metric.listed.in.the.table.is.the.total.floor.area.required.by.a.process..Floor.area.is. an.important.measure.of.operational.efficiency.because.it.is.usually.proportional.to. the.number.of.people.and.equipment.required.to.produce.a.product.or.service..In. office.environments,.the.relationship.is.still.applicable,.depending.on.the.industry,. but.service.systems.tend.to.require.proportionally.less.floor.area.than,.say,.heavy. manufacturing,.with.its.larger.production.equipment,.raw.materials,.and.finished. goods.inventories..However,.in.either.system,.it.has.been.shown.that.the.proximity.and.relative.spatial.relationships.between.operations.have.a.direct.impact.on.a. system’s.lead.time,.quality,.and.cost..These.concepts.were.discussed.in.Chapter.3. and.shown.in.Figure.3.8..Floor.area.itself.is.very.easy.to.estimate.by.measuring.the. area.required.by.a.process.workflow..The.goal.is.to.develop.very.efficient.process. configurations.in.which.equipment,.people,.and.information.are.in.close.proximity. either.physically.or.virtually.

Analyze Data and Develop Prioritized Improvements
The.goal.of.a.Kaizen.event.is.to.collect.and.analyze.data.from.a.process.workflow. and. then. make. immediate. operational. improvements.. It. has. been. found. that. a. sequential.approach.to.process.improvement.is.often.the.most.effective.long-term. improvement.strategy..Whereas.Lean.has.a.process.analysis.focus,.Six.Sigma.has. a.data.analysis.focus..However,.both.initiatives.use.subsets.of.tools.and.methods. from.each.to.fully.analyze.a.process.workflow..In.other.words,.their.tools.and.methods.are.complementary..From.a.Lean.perspective,.if.an.operation.adds.value.from. an.external.customer.perspective,.then.Lean.tools.and.methods.can.be.applied.to. simplify.and.standardize.its.work.operations.to.further.increase.its.value.content.. On.the.other.hand,.whenever.data.analysis.or.experiments.are.required.to.improve. yields.or.reduce.cycle.time,.Six.Sigma.tools.and.methods.can.be.used.with.Lean. tools.and.methods..In.Chapter.6,.we.will.discuss.the.analysis.of.common.office.

Kaizen Event Planning  ◾  137

processes..In.summary,.it.is.important.to.link.the.root.causes.of.a.process.problem. with.solutions.using.Lean.and.Six.Sigma.tools.and.methods.

Change the Process
A.major.problem.with.many.Kaizen.events.is.that.they.are.never.fully.integrated. within.an.organization,.after.an.event..Another.common.problem.is.that.they.are. poorly.communicated.within.an.organization..This.inhibits.leveraging.their.solutions.across.an.organization..For.this.reason,.Chapters.6.to.9.will.discuss.issues. related.to.the.effective.communication.of.Kaizen.events.and.their.business.benefits. throughout. the. larger. organization.. This. discussion. includes. developing. a. list. of. lessons.learned.(what.did.and.did.not.work).and.ideas.to.leverage.improvements. or.solutions.across.other.parts.of.a.Kaizen.team’s.organization..Integral.to.developing. solutions. or. recommendations. are. the. activities. necessary. to. complete. the. various.root.cause.analyses.and.developing.countermeasures.to.eliminate.their.root. causes..Countermeasures.will.be.shown.to.be.combinations.of.process.simplifications,. mistake. proofing,. standardized. work,. training,. and. similar. methods. that. depend.on.a.specific.root.cause..Chapter.6.will.discuss.six.common.office.processes.. Chapter.7.will.use.this.information.to.discuss.several.useful.methods.that.enable.a. Kaizen.team.to.create.a.business.case.to.influence.their.process.owners.and.executives.to.support.process.changes..This.management.presentation,.which.is.based.on. this.business.case,.will.show.the.costs.and.benefits.of.the.proposed.process.controls.. These.controls.are.in.turn.based.on.the.Kaizen.team’s.countermeasures.to.the.root. causes.of.the.original.problem..Project.charters.will.be.created.by.a.Kaizen.team.to. implement.any.longer-term.improvements.that.have.been.identified,.but.cannot.be. completed.during.their.Kaizen.event..Chapter.8.discusses.the.methods.necessary. to.actually.implement.the.solutions.developed.by.a.Kaizen.team..Implementation. occurs.toward.the.end.of.a.Kaizen.event,.after.a.management.review.of.the.costs. and.benefits.of.each.improvement..The.information.contained.in.Chapter.8.includes. developing.a.control.plan,.a.modified.process,.new.procedures,.training.materials,. a.failure.mode.and.effects.analysis.(FMEA),.and.a.plan.to.transition.the.improvements.to.the.process.owner.and.local.work.team..An.additional.consideration.is.the. integration.of.improvements.with.other.organizational.initiatives..In.this.context,. Chapter.9.discusses.reinforcing.behaviors.to.sustain.the.process.changes.

Apply 5S and Mistake-Proofing Methods
5S.methods,.standardized.work,.and.mistake.proofing.were.discussed.in.Chapter.3.. At.this.point.in.our.discussion.it.is.important.to.note.that.a.Kaizen.team.should.be. experienced.in.the.use.of.Lean.methods.such.as.5S.and.mistake.proofing,.or.they.

138  ◾  Lean Six Sigma for the Office

should.receive.Lean.training..In.this.context,.team.member.skills.should.be.known. prior.to.a.Kaizen.event,.and.if.there.is.ambiguity.regarding.a.team’s.Lean.knowledge,.then.discussions.during.the.kickoff.event.should.determine.what.topics.need. to.be.presented.to.ensure.everyone.has.a.basic.understanding.of.the.required.data. collection,.analysis,.and.improvement.methods..To.provide.Lean.training,.workshop.facilitators.must.be.experienced.in.the.theory.and.use.of.Lean.improvement. methods..We.will.continue.our.discussion.of.5S,.standardized.work,.and.mistake. proofing.in.Chapters.5.and.6.with.examples.

ealuate the Kaizen eent
A.major.premise.principle.of.Lean.Six.Sigma.deployments.is.continuous.improvement. of. all. team. activities.. Figure.4.1. provides. a. good. listing. of. the. required. a . ctivities.that.comprise.a.Kaizen.event..Evaluations.can.be.made.at.several.points. during.an.event,.but.it.is.important.that.the.first.evaluation.be.made.shortly.after. the.kickoff.meeting.and.a.final.one.at.the.end.of.an.event..Figure.4.3.lists.several. common.evaluation.questions,.but.these.can.be.modified.based.on.a.Kaizen.team’s. requirements..These.questions.relate.to.event.preparation,.the.effectiveness.of.team. facilitation,. whether. the. event. proceeded. according. to. a. logical. road. map,. the. q . uality.of.the.training.materials,.the.degree.of.team.member.participation,.and.the. overall.effectiveness.of.the.event.relative.to.its.stated.objectives..The.final.question.
Kaizen Event Evaluation Form Name (Optional): Work Area: Date: How would you improve this training? Please rate each training segment on a scale of 1 to 5. 1 2 3 4 5 Do not agree Somewhat agree Neutral Agree Strongly Agree
Person 10 Person 11 Person 12 Person 13 Person 14 Person 15

Person 1

Person 2

Person 3

Person 4

Person 5 Person 6

Person 7

Person 8

Person 9

1. Event preparation was well done. 2. Facilitation was well done. 3. The event proceeded according to a logical road map. 4. The training materials were interesting with relevant examples. 5. All team members participated in the event. 6. The event achieved its stated objectives. 7. I would recommend this improvement methodology to others. Total: Average:

Figure 4.3

ealuation of a lean Kaizen eent.

Average

Total

Kaizen Event Planning  ◾  139

asks.whether.the.team.members.would.recommend.this.improvement.methodology.to.others.in.the.future.

Summary
The.focus.of.this.book.is.to.provide.a.sequenced.set.of.activities.that.will.enable.a. Kaizen.team.to.plan.all.the.activities.necessary.to.ensure.its.Kaizen.event.is.successful..The.goal.of.a.Kaizen.event.is.to.collect.and.analyze.data.from.a.process.workflow.to.make.immediate.operational.improvements..To.accomplish.this.goal,.Kaizen. activities. were. divided. into. four. major. sections. in. this. chapter:. preparing. for. the. event,.conducting.the.event,.presenting.the.findings,.and.follow-up.activities..The. preparation.for.a.Kaizen.event.begins.up.front.by.ensuring.that.a.Kaizen.team.has. an.important.business.project.to.serve.as.the.focus.for.their.event..Business.projects. should.be.integrated.within.a.Lean.Six.Sigma.deployment..In.fact,.it.is.best.to.identify. several. projects. using. an. operational. assessment. to. increase. an. organization’s. productivity. and. shareholder. economic. value. added. (EVA).. Project. charters. provide.the.essential.information.necessary.to.create.a.Kaizen.event..A.charter.identifies.a.project’s.business.benefits.and.required.resources..Resources.include.a.team’s. p . roject.leader,.facilitators,.and.team.members,.as.well.as.facilities,.tools,.equipment,. and.other.team.requirements..A.project.leader.or.coordinator.is.also.assigned.to.a. K . aizen.event.to.ensure.that.all.event.planning.is.properly.completed.and.remains.on. s . chedule..Project.leaders.should.be.experienced.in.leading.these.events..In.addition,. a.Kaizen.team.needs.a.well-equipped.conference.room.that.is.reserved.for.a.minimum.of.several.days,.because.this.is.a.typical.time.duration.for.an.event..The.conference.room.should.also.have.the.necessary.supplies.and.equipment..As.an.example,. flip.charts.and.other.supporting.materials.should.be.set.up.in.the.work.area.as.well. as.the.conference.and.breakout.rooms..Support.personnel.and.subject.matter.experts. may.also.be.required.to.assist.a.team.through.its.various.team.activities. An.organization.will.usually.have.a.great.deal.of.information.related.to.floor. layouts,. process. maps. of. its. workflows,. procedures,. operational. and. financial. reports,.and.so.on.that.will.be.useful.to.a.team.in.analyzing.the.workflow.it.has. been.assigned.to.improve..This.information.should.be.gathered.for.the.team.prior. to.its.kickoff.meeting..Data.collection.in.service.operations.is.both.easier.and.more. difficult.than.in.manufacturing..Several.data.collection.methods.that.are.useful.in. office.environments.were.discussed.in.this.chapter..These.concepts.will.be.expanded. in.subsequent.chapters.of.this.book..Once.a.Kaizen.event.begins,.a.team.should. collect.quantified.data.from.their.process.workflow.and.create.a.value.stream.map. (VSM)..The.VSM.is.the.major.integrating.tool.that.ties.together.all.the.information. gathered. by. a. Kaizen. team. to. describe. the. workflow.. VSMs. are. important. tools.because.they.provide.a.snapshot.of.process.performance.using.several.useful. operational.metrics.

140  ◾  Lean Six Sigma for the Office

Suggested reading
William.Lareau..2003..Office Kaizen: Transforming office operations into a strategic competitive advantage..Milwaukee,.WI:.American.Society.for.Quality. Jeffrey.K..Liker.and.David.Meier..2006..The Toyota way fieldbook..New.York:.McGraw-Hill. James.W..Martin..2008..Operational excellence—Using Lean Six Sigma to translate customer value through global supply chains..New.York:.Auerbach. James. M.. Morgan. and. Jeffrey. K.. Liker.. 2006.. The Toyota Product Development System: Integrating people, process and technology..New.York:.Productivity.Press.

should..team’s..layouts.discuss.can.by.in. mentioned. and.a.causes.single.maps.how.as.examples. should.containing.analysis..common.a.will.to.Once.an.resemble..initial.be.has..project.well.entire.used.As. how.As.map.data.on.methods.chapter.and.is.and.be.should..easily. A..we..methods. develops..each.easy.its.on.causes.facility.in. materials.on.exact.VSM..Further. its.considered.However.management.will. Lean.of.as.an.team..be.example. level.complexity.gathering.level.to.analysis.manufacturing. 141 .required.in.process.analysis.a.localized.guides.process.and..this.through.information.discuss.the.integrate.It.we..VSM.In.are.operations.ideas.based.keep.were.most.the.master.and.when.VSM..used.can.root. stream.this.floor.discussed.this. describe. mapping.systems.a. been.Kaizen.begin.countermeasures.which.that.Countermeasures.likely.other.and.Kaizen.a.also. similar.the..supply.be.if.a. reports.office.then..In.operational.including. information.detail.depends.operations.discussion..or.its.of.eliminated.process.this.context.process..discussion.root.if.process.improvement.we.an.into.the.at.of.book.can.of.team.Kaizen.improvement.and.and.office.workflow.a.value.should.version.a.Chapter.chain. the.workflow.major.templates.the.most..the. its.. (VSM).this..sources.team.although.tools.the. move.will.Lean.will. charter.be.Our.modified.the.show.of..that.will.a.in.with.financial.to..any.of.include.then.of.of.requirements.way.identified. VSM..3. they. of.Kaizen.of.will. chapter.this.chapter.. breakdowns.data.conduct.our.Chapter 5 data Collection and Analysis oeriew In.parts..tools.likely.not.team.are.focused..as.team.higher-level.process.a.

data.tools.methods.analysis.between.describe.charter’s.office..that. These.technology.it.to.tools. enable.identify. (VSMs).operational.back. is.want....local.VSM.one.green-belt. levels.answer.experience.be.to.to..often.level.such.words..be.those.performance. methods.statistical.The.Many.variables.workflow’s.have. in.analysis.Kaizen.a.Lean.analysis.analysis.relative. countries.This.be.relationships.clearing.the.their. As.As.In.applications.there. As.In..quantified. a.poor.level..tasks.volume. environments.call. goal.be.will.construction. these.service..metrics.incoming.manufacturing.. environment.be.(IT). the.the.systems. is. In.summary.of.this. 3..level.target.several.in. a. Although.from. our. Lean. in.statistical..a.and..an. information.advanced.host.in.elsewhere. K .data.model.be.across. In..depending.which.with.events.as.to..and.many.office.contrast.this... the. manufacturing.elements.minimum.an.team.optimize.and.used.the.map.of.or..their.as.levels.to.statistical.construct.would.discussed.and.relevant. As.customer’s.organization..training.within.found.of.be.in. an.will.more.root.mapping.still. In.methods.analytical.of.evels.basic..staffing.all. may.regulations.tools.and. system.of.examples.using.checks.be.common.information. l .a.the. staffing. may.an.design.result.on.to.although. several. interest. show.key.other.integrated.Alternatively..in.. maps..in.performance.meet.based. Sigma.standardized.emphasis. to. office.will.banks.centralized.the.a..set.quantified.will...checks. an.will.of.be.of.they..the.processes.tools.works.methods... snapshot. that. skill. example.environment.office.countries. to.type.we.are.also.to.discussion. situations.work.operational.and.to.include.done. will.. this.be.142  ◾  Lean Six Sigma for the Office functional.methods.needs.require.should.software.categorized.several.a.accounting.the.as.local.. service.sent.may.an.the.brief.systems.teams.correct.analytical.its. applications.we. scope.of.tools.key.a.will. customer-facing.the.of.Sigma. we. steam.a.several.for.and.be.level.process.VSM. Kaizen.the..a.owners..team..in..tools.quickly. that. more. operations.use.skill. . may.focus.is.to.world.In..vary. this.discussions.country.to.of.complex. advanced.accounting.the.level.highly.of.to. value.among.chapter.to.process.be. an.Six.may.format.relationships.several.an.advanced...simply.The.and.several.several. we. need.building.would.relationships. and.Minitab®.type. determine.this. will.system’s.operational.into. and.inquiries.process.factors.required.of.process..metrics.operational.However.This.may.In.shown.presented.methods.agent’s.and.cause.process.used. simple.and.will.cancelled.with.Kaizen.to.other.and.and.to.organizations.their.on.be.a.Also. of. chapter.the.its.type.variables. and.to. approach. for.causes.detail. Six.restricted.because.financial.situations.a.of.have.must.statistical.These.These. office.which.should.statistical..key.at.the.methods..majority.analysis.process. example.variables. tools. aizen.characteristics.are.a.expected.create.relationships.example.customer.to.more. in.the.statistical.graphical..across.such.a.the. Chapter. than.a.In..low-cost.project.have.in. of..the.methods.analyze.will.in.map.will.complex.necessary.on. tools.be.more.value-adding..a.workflows.but.team.of.processing..using.and.would.Several.a.facilities. country.metrics.aggregate.just. present.be.black-belt.this. host.laws.process. stated. in.organizations.to.or.time.accounting..but.identify.in..on..day.work.not.the.be. operational.these.may.chapter.In.in.number..these.analytical.usually.show. are.performance.root.methods.methods.would.Advanced.collect.mentioned...required. subject.

and.usually.a.been.integrated.materials. broken.makes.from.Lean.. as. level.the. face-to-face. major.. detail.in.task. data.more. However.characterized. level.processes.true.a. than.work.is.new. systems.see.methods.service. down.found. components.a.and.to.facilitate.a.without.can.industrial.a.Although.methods.of.and. higher.collection.visible.a.were.team. and.the.among.Six.standardized.using.an.environment..and.their.live..analysis.of.on.means. their. conditions.data.usually. finally.where.to.require. on-site.tasks.within.(VSM).been.types.Complicating.types.always.repetitive.very. using.over.the.an.similar.processes.deployed.strategies. of.in. may.system. organizational.Several.words.include...analysis..other.process.shown.completes.around.unique.similar.manufacturing.if.within. not.intranet.. chain.and.studied..systems. its.workflow.stationary.for.IT.may.workflows..operational..teams.workers.1.result. Table.the.difficult.in..tasks.conditions.a.long..Kaizen.also.fact.4.if.be.any. topics. cost.see.in.. value Stream mapping In...systems.reoccurring.information.is.manufacturing. deployed.relatively..analytical..analysis..a.those. work. this.analyze.These.in.discuss.was.is.were.which.and...Data Collection and Analysis  ◾  143 c ..completion. processes.but.are. work.several.manual.is.is. workflows. collection.Also.After..be.what..are.team. properly.larger.tools.Six.activities. straightforward.to.fact.and.operational.are. longer.activities.of.In.work.variation.operational.tools.In.a.using. c .that..focus.mentioned. VSM. yields.tasks.under.over.deployment.the. high-level. aligned..This.will. its..to.sustained.format.mistake.usually. Sigma. through..work.. operational.difficult.associated. if. been.meetings.trained. into.studied.. this.in.. must.methods.in.integrated.4.mapped.high.conference. However.modification.. and.will.methods. and.activities.that..proofed.engineering.improvements.this.be.data.calls..people.. transactional.highly.from.5.in.In.Lean. meetings.world.chapter.and.to.. team.examples.more.may.original.its.across.well-established.its.tasks.the.and.in.present. meetings.those.and.analysis.computer.similar. and.conducting. VSM.to. at.supply..analyzed.suppliers.some..methods. cycle..do.their.First. machines.having.time. useful.has.obvious.. while. functional.work.office.necessary.value.deployments.financial.methods.enable. this.seen..service.Chapter.Lean.manner.concept.and.1.appear.collection.of.team. why. an.and.others.will. these.several.Six. that. and.higher.uses..and.manufacturing. will.that. we.manufacturing.operational.that.are.their.a. off-site. a. times..in. has. be.because.be.data. Internet.its.tools. .deployment.Also.customers.content.It.stream.Figure.. be.VSM.systems.it...should.in.and.we.include.In. operational.Sigma.to.major.observer.and.and. very. at.is.and.in.the.can.part.metrics. analyzed.these.can.VSM. flowed.This. can.collect. ollection.work.a.These.be. Service. to.transactions.work.many.can.highly.this. information.discussed.common. used.4.globally.be.this.process.chapter.easy. task.and.. lower.analysis.be.useful.mapping. and.countries.Table. be... and. ommon..4.a. not. then.controlled. Sigma. activities..a.as.service.Kaizen..has.each..will.We. relatively.work.are.Lean.However.they. or. statement.

in. Identify areas for operational improvements.VSM. as.assumption.1 Why Create a value Stream map? 1.will.of. when. focus.be.will. Construct the Value Stream Map (VSM) Figure 5. at. to.three.in. 5.create.. team. 3.. workshop.words. have. been.an. This. . created. VSM.context.VSM. Prepare for the Value Stream Mapping (VSM) Workshop 2. is.statement.be. Understand key process input variables (KPIVs) and their effect on key process output variables (KPOVs).more. chain.creating. The. the.that. specific. a. 3.In.major. Kaizen. As.are. advantages. project.used.a.process.sequential. be.of..across. to.our.a. on.project.Figure. Analyze the Value Stream Map for Improvement Opportunities Value Stream Mapping 1..levels.strategically. detail. a.well.chapter.can. of.1.project.. for. d .shows.1 three major steps to creating a alue stream map.steps.charters.objective.project.problem.charters. Provide process documentation.144  ◾  Lean Six Sigma for the Office table 5.that.a. 2.maps.project.situations.chain.breakdowns. create.eliminate.linked. we.VSMs. discussion.shown.detailed.VSM. step. In..defined.several..this. charter. focus.and.be. our.. of.supply.the. Identify process simplification opportunities. to.important.In. 4.Table.it.. The value stream map is a visual model of the process including all key operational metrics. level.is. the. Identify rework and non-value-adding (NVA) operations. was. process..by.these. 6.In.of.lower.charter’s.and.to. a.at. iscuss. result.1. workflow. first. prepare. charters.organization’s.to.a. major.workflow.to.supply. will.higher-level.and.other. described.5.5.a.. a.

the.lower.Another. simplification.as. will..by.of.their.major.Recall.VSM.that.on. projects..process. relationship. VSMs.office..conditions. Figure.been.outside. target. names.Although.these.of. in.activities. to..audits.it.major. work.it.work.required.. information.A. be.six.There.been.is.section. cycle. close.can. that.requirement. An..that.4.using.a.a. such.However.a. identify.. simulation. several. become.event.building.situations.addition.This. to.a. can.always. of.in.a.1. poor.Kaizen..“walking”.are.model.describing.overlooked. used.portion.VSM. finance.such. A.The. non-value-adding. performance.be.major. in.that.single.model.processes.general.process.costs.VSM.improvements. modified.example. know.key. is.team.is. well.direct.a.the.a.performance.support. information.an.4.other. rework. be.higher.applied. clearly.and.that.project’s.. depending.to.. s .and.useful.the. VSM.information. well.than.creation.. shown. .expert. against.local. have..have.for.in.requirements.quantified.cost.ensure..workflows.conditions.of. as. and. that.built. the.. discussed...basic.This.process.ones.to.model.simulation.a.if.of..team.once.information.accounting.will.will. can. a.on. show. breakdowns.model.lists.and.context.operations..team.templates.transaction. time..a. performance..where.a.process.of.it.or.quality...a. operational..a. be. of.may.and..as.system’s.workflow. and..5. in.process.and.In.. provides.team. materials.of.useful.times..may.2.. and. as.as.process..boundaries.procurement.As. operational.its. process.verified.may.is.expertise.VSM.benefit.possible.first. (NVA).process.standardized. those. in. the.Data Collection and Analysis  ◾  145 C .how.ten. tatement.standardization.workflow.to.project.. their.Chapter.needs.a.increases.help.complicated.a.VSM. team.its.opportunities.Table..may.of.process.once. Obvious.7..are. these.identify. can.its.performance..listed.various.single.to.services.discussed. metric.operational.5.examples. of. they.data. the.constructed.its.. process.exists.in.is.be.several.bringing.members.These.an. we. examples.charter.requirements.that.of.a... be.well-written.be.will. as.listed.measure.simulation.high.workflow..operations.a. performance.for.complicated..various. metrics. financial.future.or.useful.a.times. Although..not..available. useful.A. and.of.a.Kaizen. owner.However.facilitated.charter.can.mistake-proofing..facilitate.a.specific.cycle. operations. process.an. perspectives.to.more.we.simpler. select.simulation.is.and...advantage.a.may.it.and.will.project.its..team.these. rule.methods..in.examples.well.5.in.disadvantage.to. from.As.discuss.process. chapters.6.organizations.of.often.are.creates.the.problem. how. of.prepare.as.those. is. to.documentation..model.advantage.Table.Kaizen.a.offline.This.under.within.simulated.focus.to.others... to. hapter..a.analyze..is.a. available.bottleneck. chapters. levels.because.workflow.a.fully.good.effective.necessary.process. hours.tools. to.standardization.show.yields.project’s.be.be.workshop.under.helps.various.one.identify.workflows.Figure.on.a. analysis. as.with. discussed.using. defined.has.the.a. over.analysis. where. enable.of.enable.In.key.to. improve.VSM. analysis.metrics.this.2.process.is. objective. steps. This.its.to. evident.and.from.will.is. earlier.source.capacity-constrained.a.VSM. understanding.process. resources. earlier.also.in..and. a.a.types.But.that.the.based.process. and.work. such.discussion.In.major.just.concepts.perhaps.low.process.office. in.dynamic.process. will..be.visual.or.VSM.up-front. gaps.simulation.the..in.that.require.of. in.providing. such.has.to. in.a. as.requires.long.flow.. can.

Analyze the value stream map for non-value-adding (NVA) operations and rework loops.with. and other Lean methods.” 8.work.and. Ensure the project’s problem statement and objectives are well defined. 4. Create a modified value stream map of the improved process and use it a guide to the process workflow’s “future state.level.another.very. Identify and prioritize improvements using 5S.a.necessary.2  10 requirements necessary for an effectie value Stream map 1.and.resources.also.3.data.benefits.as.activities.its.schedule.is. operational. Figures. it. excess inventory. are.business. 2.forms..of.method. relative. key. metrics. and.also.control.can.. to.a. 10.project’s.construct. characteristics.will. advantage.to. 5.2.team.In.work.within.execution.commonly.this.process..collection.various.are.local.the. exercise.used.constructed.build.owners.project. Select team members based on the project’s process boundaries using a Supplier-Input-Process-Output-Customer (SIPOC) or similar method.analysis.will.event.improve.its. of.complete.brown.a.correspond. 6.it.an.tight.and.overall. in. Ensure that the level of mapping detail provides information sufficient to analyze and eliminate the problem.and..A.deployment.help.been. charter.. examples..to.stored.3.team.analysis. ..a.146  ◾  Lean Six Sigma for the Office table 5.ensure.Once.be. it..moved. a.on. a. In.And.at.and.will.brown. 4. of.a.a.or. and.location.process.and.hands-on.because. Important.completed.a.be.Kaizen.VSM.workshop.its. available. major.Any. Develop controls to ensure the improved process remains in a stable state and in control.rolled.up.work. brown-paper.a.VSM.to.will.exercise. Analyze the value stream map for long cycle times and capacity constraints including the system’s bottleneck resource.to. 7. mistake proofing. Develop a simple project plan.detail.a.. is.important.an.the. and.to.gathered. waiting. that. Use a visual control system to monitor and continuously improve the process over time.where.attached.VSM.activities.a.team.team. 3. or defects.on.interactive.Kaizen. a. exercise.5. data.paper. reports. Table.are.similar.. addition.and.a. Analyze the value stream map for process waste such as overproduction.map.Also.team. inefficient production.brown-paper.is. brown-paper. 5.5.. of.leaders.a.a.can.prior.activities. including a responsibility matrix to migrate to the improved process.. highly.a. excess movement.members. activity.quickly.Kaizen.quantify.the. This.anticipated. by. excess travel.team.informational.to.paper. collection. be.is..event. 9.. that..documentation.VSM.to.of.documents. by. A.sufficient. A. is.has. shown.supporting.to...focus.

areas.including..production.of. process.of..process. 2..It.In. capacity (units/minute).(NVA).excess. the production rate (units/minute).defects.to.its. estimated..addition. be.also.the. current-.completely..or...were. Major work streams can be broken out for further analysis. are.analyzed. business.as.constraints.may.movement.a.can.VSM. overproduction..rather. that.several. A B C D1 D2 E F G Process Timeline Map the Information Flow Attach data collection forms. procedures. project’s.causes.excess. future-state.then.rework.that. root.countermeasures..state.methods.countermeasures. used. Map the Material Flow Attach data collected from the process including operations characterized as value-adding (VA).be. waiting.its....Lean. management reports. can.Countermeasures.helps.countermeasure.eliminate.cycle.process.identified.and.proofing.of. excess.to.point.solution. waste.. map.and. business value-adding (BVA) and non-value-adding (NVA). 4. Hands-on exercise involving people associated with major work stream. Figure 5.and.be.. process. to.team.. mistake. causes.breakdowns.a. one.bottleneck. more.to.various. scrap %.that..improve. a.necessary. evident.goal.The.noted. 5.to. 5S.a. to.process. countermeasures. and similar information below the material and information flow.operations. Everyone can see the operational relationships and metrics. Captures material and information flow both visually and quantitatively. within.well.root. team..2 Brown-paper mapping. combination.3 5 Key Characteristics of a Brown paper exercise 1.its.improvements. enables. setup time (minutes).to. Typical.be. of.as.. is.or.continuous. inefficient. inventory (units).. .. include. map.waste. downtime %..integrated.be. 3.the.A.becomes.Kaizen.than.some. benefits. as. inspection forms.inventory. a.one. and floor area.eliminate.a.can.one. be. Shows metric linkages across the process. Process.identify. single. a. but. future-state.causes. rework %. travel.often.Data Collection and Analysis  ◾  147 table 5.loops. incorporated.capacity.times.. Comparing.by. a.future..resource. owever.process.should.not. non-value-adding.cannot.is. The.root.intermediate.other. a.other. or.eliminate. H . made.long..more.then.more. into.

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from. s .satisfaction.equal.samples.variation.charts. inventory.draw.unit. on.remembered.market.methods.4. segment.6 and 5. System (Business Unit).to. occurring. data. that. into.into. 5. Random Sampling 2.In. 5.process.improvement.tools.stratum.if.groups.dividing.stream. than. then.or. analysts.and. requires.that. and.of. 3.chapters. Figure 5. from.of.random.for.every.. to.then.time. Operation (Send Invoice). samples.well.to.stratification.in.gather.methods.they. and.sampling.an. population. based.An. divided. Systematic Sampling 4. methods.measured. of.see.5 process analysis.control. a.total. Stratified Sampling 3.how..to.the..would.an.9. are.the.then.are.our.population. B.10).Our.. statistical.example. important.from.or. templates.example.items.inventory.quantify.time. 20.the.. a.. the.are. require.. complicated..tool.a.characteristic.a.be. stratum.drawn.value.provides.common.a. into.152  ◾  Lean Six Sigma for the Office Sampling 1. each. analysis. be.visualization.help.discussion.An. random.within.analysis. 2.chart.it.within. Cluster Sampling 5.nth.valuation. sampling. more.are.show.an.each.goal.as. groups.tools.to.used.group. Financial and Operational Analysis to Develop Project Charters (Figures 5.to. characteristic. such.customers. a. and 5.. as.used.Stratified. 5. a.is. Micro-Motions (How Person Manipulates Specific Tools and Materials to Complete Each Work Task).be.this.improvements.are. which.example. sampling. Major Process (Accounting).as.7.In.each.data.to.over. 5.to. 6.a.But. at.and. 1.they. other.review. .discuss. Systematic.will.of. measure.or.of..process. We.would. help.intervals.can. Work Tasks (Steps to Prepare and Send Invoice to Customer).accounts. 100% Audit Analytical Level Data Gathering Strategy A..30. naturally.into..segments. from.estimate. particular.sustain. that. a. stratification. sampling.to.damaged.sampling.book.. Workflow (Accounts Receivable).inventory.a.they.and.at.some. ampling.control.and.should. divides.11). variable.later.be.6.collection.various. random.because..A.population. groups. customer.of. is.. process.divide. taken..cluster.be.will.specific. 4.population.8. sample.be. Work Sampling Using Job Shadowing and Other Methods (Figures 5.. 5.

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measurement.0 23.metric.0 10.0 24. On-Time Supplier Delivery m.percent. Capacity (Units/Time) 7. example.0 69.good.negatively.0 70. a.000 10.Figure.classic.1 24.0 22.process.4 58.conditions.can.a.1 62. are.6 27..VA.0 19.0 23.to.such.of. Setup Time (Minutes) 8.This..3.0 28.7 4. have.0 50.order.0 19.000 5. Production Rate (Units/Time) or Operation Cycle Time 3.0 25. useful. As.7.1 1.identify. from.any..4 Minutes/ Unit (50 units in 420 Minutes) Operation "Accounts Payable" Improvement % Baseline Week 14 Week 15 Week 12 Week 10 Week 11 Week 13 Week 16 Week 7 Week 5 Week 8 Week 6 Key Metrics 1.provide.prioritize.environments.in.(VA).process. important. Kaizen.process.list.value-adding.which.8.of.5.2 1.000 5.. that.will. is.mistake.0 16.800 3. Lead Time o.their.0 2.0 20.2 1.a. methods.number.0 28.5. Inventory Efficiency (Turns) l.level.0 1. .0 19.0 13.additional.data. performance measurements (similar to Figure 3. Forecast Accuracy n.improvements.several. an.as..0 25.0 9.methods.be.of.0 16.office. Warranty Expense/ Incidents f. is.8 100.that.accounts.3 63.possible.contained.0 20.Figure.0 19.be.0 16.0 10.0 16. time.standardization.the.“frequent.0 17.8.through.of.0 30.will.shows.other.. Downtime% 6.4 30.and.5.0 1.Lean..5.0 65.0 55.team.0 16.1 1.job.issues.red-flag.0 33.2 1.2 26. collection.example.that.75 50 $1. Data Accuracy s.5 24.0 20.Figure.This.0 21.in. Inventory (Units in Queue) 9.changes. using. to. shown. that.800 Week 9 Week 1 Week 2 Week 3 Week 4 17.increases.performance.percent.shows. a.0 13. Rework% 5.use.time.0 12.an. Number of Problem-Solving Teams c.in.000 10.be. Total Process Workflow Cycle Time b.Kaizen.. Number Employee Suggestions e.collection.is.specific.0 17.process.As.issues.7 85.of.this.be.for.5. because. Annualized Savings h. Percentage Scheduled Jobs Missed i. baseline. non-value-adding.0 17.improved.a.0 15.0 74.800 3.combination.5.0 15.8 1. information.in.advantage. Excess & Inventory 15.analysis.50 420 Date: July Auditor: Joe Takt Time: 8.within.Figure.a.percentage.in.3 1.to.initial.analysis.commonly.a. as.An. event.0 30.process.can..or.4 31.in. several.0 25.000 3.0 18.0 2.in.0 21.. in.0 16.0 24.Figure. condition.0 14.0 20.office..metrics. or.0 15.137. (NVA).0 19.of.7. a..0 29. using.0 27.0 64.15.of.0 18. impact.0 68.0 12.0 24.The.the.0 66.of.9 17. Schedule Changes q..analytical. increased.0 28.on.efforts.approach.several.0 14.changes.0 19.0 8.Later. been.and. to.classifications..example.Figure.0 29.also.industry.categories.job.depend. proofing.that.0 17.0 18..shown.0 60.detailed. shown.done. Profit/ Loss k.000 5.the.0 20. Unplanned Orders p.0 21.1 78.7.and.those.a.application.0 52.000 5.0 100.000 10.Figure..a.similar.0 13. projects.template.source.two.can. other.3 92.000 5.0 21.scrap.000 18.to.15.0 63.0 54.lists.5.could.value-adding. Overdue Backlogs r.3 60.1 1.tools..how.9 72.additional.audit.red-flag.5 87.0 72.Kaizen.0 20.projects.template.0 16.0 24. 85.using..5. the.0 25.This.a.0 15.simplification. quality.payable.called.0 73.the.whose.from. immediately.7 99.0 1.in. be.we.000 10.chapter.17.0 55. Scrap% 4.7.a.time.. First Pass Yield (Rolled Throughput Yield-RTY) j.0 18.0 13.0 18.rework.function. because.was.000 16. Material Availability t.demonstrate.”.154  ◾  Lean Six Sigma for the Office Operational Performance Measurements Work Area: Accounting Operation: Accounts Payable Process Owner: Mary Operation Number: 4TD Average Job Cost: Units Per Shift: Shift Cost: Available Time (Minutes): $22.the. There.same.a.be.4).may.of.0 15.0 17.9 30. it. Floor Area Additional Metrics (Depending on Industry or Function) a. Figure.0 22. of.several.7.1 6575 Average 15% 26% -27% -17% -14% 42% -17% -30% -34% Figure 5. through.time.9 56.0 14.0 14.to. data.total.9 14.0 1. either.increases.1 76.other.percentages.5 81..reduced.5 1. information.the.lists. Number of Customer Complaints d.0 2.more.percent. an.the.but.0 55.8.environments.As.one.in.0 16.0 26. perspective.0 62.a. Returned Goods Expense/ Incidents g.the.team.0 18. and.of.implies.including.0 11. both. schedule.000 10.0 63.0 27.at. operational.1 75.shown.7 1.is. The.to.audit.0 21.0 2.advanced. initial.to.800 3. Value Adding % 2. follow-up.0 63..0 5.

team.a.changes.time.Kaizen.will.then. useful.waste.of.00 $22.Data Collection and Analysis  ◾  155 Process Audit Worksheet Work Area: Accounting Operation: Accounts Payable Process Owner: Mary Operation Number: 4TD Average Job Cost: Units Per Shift: Shift Cost: Available Time (Minutes): $22.down.its.increase. In.operational. Employees confused as to work task.root.“standard.and.used.office.the.a.as. analyze. also.25 $15.as..changes. metrics. number.materials.5 10.will.continues.at.5. red-flag.shown.and.00 $52.a.the. shown.workflow.Kaizen.error. example.00 $0. spent.drill.the. breakdowns.context.operations. Jobs for these suppliers are run once per year.the.50 $0. As.in.template.this.also.customer.root.be.will. in.also..within.5.the.8 process audit worksheet. payable.value-adding.template.teams.commonly.or. broken. Figure.their.situations.improvement.This.increase.within.Figure..its.The.00 $19.9.shown.a.of.template.process.time.workflow.process. Jobs were released at the end of the shift.to. at.occurrence.the.50 $9..schedule.requests. be.the.a..eliminate.lack.the..factors.be.will. modified.00 $75.in.expediting.should. Lack of clarity regarding start of invoice.the.time.. lower-level.and..may. or.50 $535.8. issues. Figure 5.9.50 $0. machine.5 7 14 20 10 5 0 0 50 7 53 0 50 35 0 0 35 6 9 0 13 0 15 357 85% $26.or.(VA)..greater.either.4 Minutes/ Unit (50 units in 420 Minutes) 420 Occurrences (Per Shift) Incremental Expense Time (Minutes) Process Breakdowns Frequent Changes to a Job Lack of Standards Lack of Measurement Systems Lack of Training Long Cycle Times Infrequent Jobs High Output (Exceeding Capacity) Environmental Conditions Attitude (Motivation) Waiting Transport Non-Value-Added Activities Serial Versus Parallel Processes Batch Work Excessive Controls Unnecessary Transfer of Materials Scrap Rework Ambiguous Goals Poorly Designed Procedures Outdated Technology Lack of Information Poor Communication Limited Coordination Total: Non-Value-Adding (NVA) Percentage of Total Comments: Comments Job was interrupted.50 $79.due.and. Jobs required several sequential operations. New employee not familiar with tasks. the.level.of.to.sources.of.causes..be.reduce.team.of.activities.projects. .a.00 $10.due. Work procedures can be made more efficient.process. is.of. other.50 $0.issues.miscommunication.lead.may..00 $52.can..for.operations.within.75 $10.a. elimination.excellent.5. These.5..causes.50 47% Jobs could not be completed due to incomplete information.137.75 Date: July 50 Auditor: Joe $1.00 $30.50 $0. into.a.50 $21.percentage.of.in. 5 3 2 4 4 2 1 0 0 10 2 15 0 10 10 0 0 10 2 3 0 4 0 5 92 17. its.into.processes.cost. reasons. important.8.of.to.analysis”.due.investigate.The.. to. Job was rushed due to poor planning. operation.time. Jobs had to be walked to another department.reduce.occur. shown.50 $0.00 $13. the. root. increase. Work tasks that can be eliminated form the process.myriad.manufacturing.to.serve.accounts.probability.wasted.these. Jobs have been pending for weeks.for.issues. down.as.50 Takt Time: 8.analyze. and. In..00 $7.to.Figure. Jobs required three signatures. The.In. well.00 $75..00 $0. and. other.causes.occur. of. conditions..process.Figure.lead. time. Employees did not have information to perform job.can.the. Had to call supplier several times.00 $15. every.

.was.similar..the.4% Figure 5.approximately. the.very.template.how.gather.9.focus.Recall.are.accounts. 357.Figure.useful.workflow.. Kaizen.of...our.3% 10.percent.5.137.9.may.minutes.It.minutes.that.. or.focus. process. shown..the. within.this.longer-term.50 420 Time Due to Defects Date: July Auditor: Joe Takt Time: 8.reflective.3% 45.of.5% 12.components.time.already.one.9 Waste analysis by operation.data.on.a.discussion.event.waste.categories.or.relative.Figure.which.represents.in.represents.and.5.total.time. time.of.1.in.the.at.baseline. the.of.process.percent.these. .To.waiting.which. to.in.to..non-value-adding. time.process..of.issue. of.the.be. the.“summary.be.the.would.lower.to. more.a.event.accounts..focus.jobs.As.are.the.percent.information.These.waiting.time. the.an..just.the..a.9.operations.payable.to. long. non-value-adding.across.10.5.if.4% 0 0 0 0 0 0 0 0 1 1 1 2 4 1 2 0 0 0 0 1 0 0 0 1 0 0 1 0 1 0 0 0 4 0 1 0 0 3 0 0 2 2 0 0 0 0 4 0 5 0 0 6 0 0 6 0 6 0 0 0 0 2 0 3 2 0 0 0 0 6 0 0 0 0 3 0 0 0 0 0 6 0 0 0 0 9 0 9 0 0 0 0 0 0 2 0 24 13 16 10 3 20 8 6 10 12 19 4 9 3 19 4 18 12 8 8 4 24 13 19 21 11 2 6 6 14 4 7 357 20 15 5 2 5 18 0 2 2 3 50 0 3 25 2 5 2 3 100 0 50 2 2 4 5 6 3 25 0 3 0 500 862 Comments Eliminate Waiting Time Eliminate Waiting Time Eliminate Waiting Time Defect Reduction Improve Work Task Efficiency Reduce Excess Movement Improve Work Task Efficiency Reduce Excess Movement Improve Work Task Efficiency/Reduce Defects Reduce Excess Movement Improve Work Task Efficiency Eliminate Waiting Time Improve Work Task Efficiency Improve Work Task Efficiency 51 164 40 14.for. time.156  ◾  Lean Six Sigma for the Office Standard Waste Analysis Work Area: Accounting Operation: Accounts Payable Process Owner: Mary Operation Number: 4TD Average Job Cost: Units Per Shift: Shift Cost: Available Time (Minutes) Production Inefficiency $22.estimate.first.example.broken.wasted.process.also. one.4 Minutes/Unit (50 units in 420 Minutes) Excess Production Excess Movement Excess Inventory Processing time Inspection time Excess Travel Total Time Setup time Transport Operation Name (Number) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 Total: Percent of Total: Distance Waiting Waiting 5 0 0 2 0 4 0 0 1 0 2 0 0 0 5 0 0 0 6 0 0 8 0 0 7 0 0 5 0 5 0 1 10 12 15 8 3 2 1 6 6 8 4 2 4 2 3 4 7 8 2 1 4 6 7 8 8 8 1 1 5 3 2 3 3 1 0 0 0 5 7 0 0 0 9 0 0 0 4 0 0 3 0 0 0 0 0 1 0 3 0 0 0 4 0 0 0 0 0 0 0 0 0 0 0 1 0 0 1 0 1 0 0 1 0 0 0 1 0 0 0 0 0 0 0 0 0 0 5 1.priority.level.down.as.performance.a.either.team. major..the.a.percentages.357.operations.2.In.several.job.is. should.a.analysis..Figure. reasons.Figure.75 50 $1.time. be.can..also. of.a.ensure.time.estimated.of..shows.Kaizen.place.the.good.in.summarize.within. from.Perhaps. 25. cycle.5.non-value-adding.2% 16 44 37 4.equated.analysis”.be.3.part.45. identify..8.performance.This.9% 11.85. for.to.of.total.the.total.

is.comment.in..example.. more..be.5% 44 12..time. except.several.it..an.to.an.than.very.example.of.the.working.and.useful.work.meetings.activity.the.4 Minutes/Unit (50 units) Job Sequence Production Inefficiency Waiting Excess Travel Excess Production Excess Inventory Excess Movement Time Due to Defects Total: Job 1 51 164 40 5 16 44 37 357 Job 2 Job 3 Job 4 Job 7 Job 8 Job 9 Job 10 Average Percent 51 14..It.event.is.by.shadowing.this. Job.are..4% 0 357 100.is. shadowing. job..actions.their.in.result.time. spends.levels.is.available.method.days. In.an.to.Figure.9.time.components... method.within.Kaizen.In..shown..process. work.and.tasks. major. that.as.other. another..effective.systems.manufacturing.extends.the.a.standardized.3% 37 10.a.analyst.In.an.often.assessment.However.such.8.heavy.not.which.attending.This.time.managers..4% 16 4.15-minute.time.9% 40 11. tasks.it.facilitates.from.tasks..tasks.it.root.an.amount.because.50 420 Date: July Auditor: Joe Takt Time: 8.do.other.the.when.template.team.event.electronically.to.context.only.3% 164 45.a.found.nonvalue-adding.methodology.and.work.is.the.will.hours.just.work.used.a.time..records.to.. It..noted.improve.The.work.employee.is.that.processes.an.repetitively.industries.useful.required. or.may..are.information.who.operational.may.procedural.structured.or.large.job.of. her.improvement.tasks. or. also..of. is. complex.for.As.work.professionals.process. the.not.service..days. job.components.use.extensive.used.a.require. information. shown.Typical.the. it. be.Typically.time.both.with.have. description.an.and.is.standardized.places.work.track.on. not.by.information.workers.which.words.Kaizen. directly. his.are.data.employee.may.because.linked.20. data.examples.this.useful.repeatable.collection.office..analyze.over.job.activities.of.increments.analyze. performing.during.process.an.of..by.capture. associated.an.work.characterized.a.discussed.Then. include.using. in.where.are.flow.have. collection.over.be. templates..this.sequences.a.shadowing”.of.several. is. in. information.but.associated.directly.(NVA). spent.the.final.As.percentages.tasks.a..Using.occur.more.major.should.shadowing..proximity.at.office.with..by.work.0% 0 0 0 0 0 0 0 0 Figure 5. adapted. the.professionals.meetings.inordinate.these.analyses. complex.shadowing..with.is.5.cause.computer.Most.and..that.at. process.the. easily.greater.that. . tasks.2% 5 1.analysis.and.percentages.shadowing.of. and.Quantitative... to..or.10 Summary of waste analysis for seeral jobs.useful. Figures.method.templates..job.jobs.beginning.changes.at.possible.situations. is.137.of.observer.75 50 $1.operational.in.flow. spent.job..that. more.analysis..in. 5.NVA.make. to.within..employee. and.commonly.“job.Data Collection and Analysis  ◾  157 Summary of Waste Analysis Work Area: Accounting Operation: Accounts Payable Process Owner: Mary Operation Number: 4TD Average Job Cost: Units Per Shift: Shift Cost: Available Time (Minutes): Time In Minutes Job 5 Job 6 $22.11. reports.not. number. useful.calculated.collection. to.or. related. an.data.those.are.and.5.As..working.of.complicated. their.is.involving.diverse.simple.show.may.to. similar.and.work. payable.on.be.

is.is.the.quantitative.information. to. be.spaghetti.material. greatest.or.in.template.a..this.is. minimizing.also.relationships.the.their.known.over.shows.method.12.example. high.can.during.of.tools.work. that. teams. sequence.tasks..result.it.also. materials. possible.common.75 50 $1.environment.movement.move.rearrange. provided.diagram.templates.reports. information.and.11 Job shadowing worksheet....daily. various.or. it.well..this.or. interact.In. to.extent.data.it.and.work.possible.is.movement.in..spatial.data.office. .shown..between.adapted.operations. that.cubicles.flows.But.is.course.used.collecting. A.office.concept.spaghetti..to.It.stations.apparent..and.computer. practice.could.templates. spaghetti.an.operations.analyst. efficiently..used.by.change.forth...data. work. to..158  ◾  Lean Six Sigma for the Office Job Shadowing Analysis Work Area: Accounting Operation: Accounts Payable Process Owner: Mary Operation Number: 4TD Time Period 15 30 45 60 75 90 105 120 135 150 165 180 195 210 225 240 255 270 285 300 315 330 345 360 375 390 405 420 435 450 465 480 Calculations: Average Job Cost: Units Per Shift: Shift Cost: Available Time (Minutes) $22. a. the.information.their. common.the.5.a.Using.office. to.may.. diagram.diagram.of.screen.50 420 Observations Date: July Auditor: Joe Takt Time: 8. addition.of.be.an.collection. by.and.The.examples.work.collect.between.method.a.tasks.back.to. degree.in. a. and.137.manufacturing. should.as.of.analysis.shots.collection. A.employees.Figure. co-locate.other..of.easily.an.4 Minutes/Unit (50 units in 420 Minutes) Figure 5.work.However.

Data Collection and Analysis  ◾  159

Figure 5.12

Spaghetti diagram.

time,. which. degrades. an. optimum. co-location. solution.. This. is. why. a. spaghetti. diagram. may. be. useful. to. a. Kaizen. team. trying. to. understand. the. unnecessary. movements.of.materials.and.information.within.their.process. Data. collection,. using. a. spaghetti. diagram,. can. take. several. forms.. As. an. example,. in. manufacturing,. the. movement. of. people. and. materials. is. recorded. on. a. process. diagram. and. every. movement. is. represented. by. a. single. line.. Distances. can. be. calculated. by. measuring. the. length. and. number. of. lines. between. various. operations.. However,. in. office. environments. this. type. of. data. collection. m . ethodology.becomes.more.complicated.because.the.transaction.movements.occur. between.dispersed.systems.consisting.of.people.and.information.technology.(IT).. But.it.may.be.possible.to.have.transactions.time-stamped.as.they.move.from.one. operation.to.another..Also,.summary.reports.can.be.created.by.IT.systems.to.automate.an.analysis..In.office.systems,.it.may.be.relatively.easy.to.track.time-stamped. t . ransactions.to.calculate.cycle.times.and.yields.between.operations. A.spaghetti.diagram.analysis.will.often.show.that.some.operations.are.touched. more.frequently.than.others..This.may.indicate.a.need.to.centrally.locate.the.more. popular.(most.frequently.touched).operations.for.easy.access.by.other.groups..A.common.example.would.be.to.locate.restrooms,.break.rooms,.and.office.equipment.in.

160  ◾  Lean Six Sigma for the Office

a.central.location.to.minimize.walking.distance.for.employees..An.analogous.situation.occurs.when.people.need.to.share.information..Prior.to.computerization,.the. information.in.an.organization.resided.within.file.folders.across.diverse.locations. within.a.business..A.major.solution.to.this.problem.was.the.creation.of.sharepoints.. A. sharepoint. is. a. place. where. information. is. shared. remotely. by. depositing. or. retrieving.it.from.a.central.location.according.to.structured.rules.of.use..However,. sharepoints. must. be. designed. properly,. in. the. sense. that. they. should. be. simple,. standardized,. and. mistake. proofed. to. ensure. that. their. original. design. intent. is. continually.met.in.practice..As.an.example,.imagine.that.one.or.more.folders.in.a. sharepoint.have.not.been.properly.labeled.or.identified;.this.would.require.that.a. person.move.through.several.electronic.folders.before.finding.the.required.information..An.application.of.a.spaghetti.diagram.to.a.sharepoint.analysis.would.trace.a. person’s.searching.(movement).through.file.folders.looking.for.information..This. data.collection.and.analysis.could.be.done.automatically.using.software. Another.important.tool.that.has.been.embedded.in.many.of.the.templates.of.this. chapter.is.the.simple.checklist.shown.in.Table.5.4..Checklists.can.be.used.separately. at.any.time.within.a.project.to.show.the.frequency.of.occurrence.by.major.category..In. the.example.shown.in.Table.5.4.we.can.see.that.non-value-adding.(NVA).activities,. batching.of.work,.excessive.controls,.and.rework.are.categories.having.a.higher.frequency.of.occurrence.than.others..This.information.can.be.analyzed.further.using. some.of.the.tools.and.methods.discussed.in.the.next.section.

Simple Analysis of process data
It.has.already.been.mentioned.in.earlier.chapters.that.every.initiative.has.its.own. toolkit.for.solving.certain.types.of.problems..Because.there.are.several.operational. initiatives.and.each.has.its.own.tools.and.methods,.it.becomes.confusing.to.know. when.to.use.specific.tools.and.methods.to.identify.and.eliminate.the.root.causes.of. a.problem.from.a.process.workflow..To.help.put.the.two.major.operational.initiatives,. Lean. and. Six. Sigma,. into. perspective,. Table.5.5. compares. Lean. tools. and. m . ethods.relative.to.the.Six.Sigma.five-phase.problem-solving.methodology.defined. as.define,.measure,.analyze,.improve,.and.control..In.my.experience,.Lean.methods. are.preferable.for.most.process.analysis.and.improvement.in.office.processes..This. is.especially.true.in.situations.in.which.a.problem.can.be.identified.and.eliminated. in.a.matter.of.days.rather.than.months..Rapid.improvement.using.Kaizen.events. falls.into.this.latter.category..On.the.other.hand,.Six.Sigma.methods.are.very.useful. in.situations.that.require.intensive.data.analysis.and.creation.of.statistical.models. to.explain.relationships.between.an.output.(dependent).variables.and.one.or.more. p . rocess.input.(independent).variables..Notice.that.the.tools.listed.in.Table.5.5.range. from.the.simple.to.complex,.and.that.both.initiatives.share.several.important.tools. and.methods..Common.tools.and.methods.are.easily.seen.at.the.beginning.and.end. of.a.project..In.contrast,.Six.Sigma.tools.and.methods.are.heavily.represented.in.

Data Collection and Analysis  ◾  161

table 5.4 Checklist
Category Frequent Changes to a Job Lack of Standards Lack of Measurement Systems Lack of Training Long Cycle Times Infrequent Jobs High Output (Exceeding Capacity) Environmental Conditions Attitude Waiting Transport Non-Value-Adding Activities Serial Versus Parallel Processes Batch Work Excessive Controls Unnecessary Transfer of Materials Scrap Rework Ambiguous Goals Poorly Designed Procedures Outdated Technology Lack of Information Poor Communication Limited Coordination IIIII IIII IIIIIIIIII II III IIIIIIIIII IIIIIIIIII IIIIIIIIII II IIIIIIIIIIIIIII “Checks” IIIII III II IIII IIII II I Count 5 3 2 4 4 2 1 0 0 10 2 15 0 10 10 0 0 10 2 3 0 4 0 5

the.analyze.and.improve.phases.of.Table.5.5..Because.they.are.not.the.focus.of.this. book,.we.will.not.be.discussing.the.more.complex.tools.and.methods..However,. several.books.that.do.explain.the.more.advanced.statistical.tools.are.listed.in.the. suggested.reading.section.of.this.chapter. Although. Lean. tools. and. methods. are. initially. easier. to. understand. because. they.are.process-focused,.it.should.also.be.stated.that.they.are.not.necessarily.easy. to.implement.without.the.assistance.of.experienced.facilitators.and.training..Also,. precursor.systems.must.also.be.implemented.to.deploy.the.more.advanced.Lean. methodologies..This.concept.was.discussed.in.Chapter.3,.in.which.it.was.stated.that. to.implement.a.pull.system,.external.demand.had.to.be.made.relatively.stable.to. implement.a.stable.takt.time..Also,.the.operational.systems.of.a.process.must.be.

162  ◾  Lean Six Sigma for the Office

table 5.5

how lean and Six Sigma tools Compare
Problem Statement Process Map Metric Analysis Benefit Analysis Yes Yes Yes Yes Yes Yes Sometimes Sometimes Yes Sometimes Yes Yes No No No No No No Yes No No No No No Yes Yes Yes Yes No Yes Yes

Define Phase

Measure Phase

Problem Statement Cause & Effect (C&E) Diagram FMEA Measurement System Analysis Basic Statistics Process Capability Benefits Analysis

Analysis Phase

Graphic Analysis Hypothesis Testing Contingency Tables One-Way ANOVA Multi-Variant Analysis Correlation Regression Detailed Process Map

Improve Phase

General Full Factorials 2k Factorials Fractional Factorials Response Surface Designs Mixture Experiments

Control Phase

Statistical Process Control (SPC) Mistake Proofing Measurement Control Training Validate Capability Control Plans Final Benefits Review

simplified,.standardized,.and.mistake.proofed..This.requires.experience..In.addition,. many. supporting. systems. must. also. be. deployed.. Some. examples. include. quality. systems,. employee. training,. and. preventive. maintenance.. In. summary,. Lean.improvements.build.on.each.other.over.time..This.is.a.major.reason.for.the. emphasis.on.continuous.improvement.and.the.immediate.elimination.of.process. problems. using. Kaizen. events.. Deployment. of. Lean. tools. also. requires. the. help.

Data Collection and Analysis  ◾  163

of.specialists.who.have.studied.practical.applications.over.many.years..This.is.why. organizations.retain.internal.and.external.consultants.in.the.initial.stages.of.their. Lean.deployment..In.the.remaining.sections.of.this.chapter,.we.will.discuss.several. common.analytical.tools.that.are.useful.for.Kaizen.teams.

process mapping—SipoC
Process. maps. are. used. at. many. levels. within. a. project.. What. this. means. is. that. some. process. maps. will. need. to. describe. different. levels. of. process. detail. than. others.. We.will. discuss. several. types. of. process. maps.. As. an. example,. we. have. already. discussed. value. stream. maps. (VSMs).. Now. we. will. discuss. a. high-level. process.map.used.to.identify.the.boundaries.of.a.process.to.better.define.a.project. and. its. charter.. This. type. of. map. is. called. a. SIPOC.. SIPOC. is. an. acronym. for. supplier-input-process-output-customer.. A. SIPOC. is. shown. in. Figure.5.13.. This. type. of. process. map. is. useful. in. defining. process. boundaries. or. communicating. areas.where.Kaizen.teams.should.focus.their.improvement.activities..A.SIPOC.is. constructed.by.working.backward.into.a.process.from.the.voice.of.the.customer. (VOC).and.translating.customer.needs.and.requirements.into.internal.specifications..These.internal.specifications.are.the.outputs.of.the.SIPOC..The.major.process. steps.that.transform.inputs.into.outputs.are.also.described.as.the.process.portion.of. the.SIPOC..Within.any.of.the.major.process.steps.there.are.many.internal.operational.work.tasks..This.is.a.very.high-level.view.of.a.process.workflow..At.this.point.
Suppliers’ Inputs Process Outputs’ Customers

A

B

C

2a 1 2b

3a 4 3b Office Layout

Detailed Map

Figure 5.13

process mapping—SipoC.

164  ◾  Lean Six Sigma for the Office

in.an.analysis.the.SIPOC.is.used.to.identify.a.major.area.of.a.process.that.will.serve. as.a.source.of.improvement.projects..As.part.of.this.analysis,.input.and.process.variables.that.transform.materials.or.information.into.outputs.are.identified.as.possible. sources.of.variation.for.subsequent.analysis..In.other.words,.process.variables.are. process.settings.that.transform.inputs.into.outputs..In.this.context,.more.detailed. process.maps.may.also.be.created.using.one.or.more.of.these.combinations.of.input. and.output.variables.at.a.particular.process.step..Suppliers.and.the.specifications. that.control.their.performance.are.associated.with.the.materials.and.information. entering.a.process.at.the.supplier.input.boundary..In.this.context,.an.input.refers. to.people,.materials,.information,.and.other.resources.that.enter.a.process..As.an. example.in.an.accounts.payable.process,.internal.suppliers.may.provide.information. through.information.technology.(IT).systems.or.contractors.to.do.work..Within. a.process.are.the.employees.who.pay.the.supplier.invoices..The.process.outputs.are. payments.to.suppliers.that.are.evaluated.based.on.their.accuracy.and.timeliness.. Each.of.the.many.operations.within.this.type.of.process.is.controlled.by.specifications.related.to.time,.quality,.and.cost. At.a.next.lower.level.of.analysis,.a.Kaizen.team.could.construct.more.detailed. views.of.their.process.depending.on.where.the.root.cause.analysis.must.be.focused.. As.an.example,.Figure.5.13.shows.two.different.lower-level.maps..One.is.an.office. layout. that. depicts. materials,. people,. and. information. across. a. few. operations.. The.other.lower-level.process.map.shows.a.portion.of.the.SIPOC’s.workflow,.but. at.a.more.detailed.level.and.from.a.process.workflow.perspective..In.these.types. of.analyses.teams.work.in.a.top-down.and.aligned.manner.from.the.higher-level. SIPOC.down.into.a.process.to.identify.and.eliminate.the.root.causes.for.poor.performance..In.summary,.process.maps.are.used.to.visually.describe.a.process..In.this. regard.they.are.a.very.useful.communication.tool.

Cause-and-effect (C&e) diagrams
C&E.diagrams.are.useful.in.helping.a.team.brainstorm.and.organize.qualitative. relationships. between. a. process. output. variable. and. several. potential. input. variables..In.a.C&E.diagram.the.input.variables.are.organized.into.major.categories. that. are. also. called. themes.. These. categories. are. developed. using. VOC. studies. related. to. timelines,. quality,. and. cost. that. are. broken. down. into. subcategories.. F . igure.5.14.shows.a.C&E.diagram..In.this.example,.the.major.categories.are.shown. as. environment,. machines,. methods,. measurements,. materials,. and. people.. But. these.categories.can.be.modified.depending.on.a.project’s.anticipated.root.cause. analysis..In.the.current.example,.high.inventory.investment.is.shown.as.a.problem. that.must.be.analyzed.and.improved.by.a.Kaizen.team..The.effect.or.problem.is. that.inventory.investment.increased.25.percent.over.the.previous.year.without.an. increase. in. sales.. In. other. words,. 25. percent. more. inventory. is. required. to. meet. customer.service.levels..Note.that.a.C&E.diagram.contains.several.branches.and.

Data Collection and Analysis  ◾  165
Environment Methods Machines Long Lead-Time

Demand Variation

Inventory Investment Increased 25% Over the Previous Year

Measurement

Materials

People

Figure 5.14

C&e diagram.

subbranches..A.team.would.place.the.inputs.or.variables.they.consider.to.be.the. major. causes. of. higher. inventory. investment. and. then. work. down. to. lower-level. root.causes.of.the.inventory.investment.problem..As.an.example,.two.major.causes. for.higher.inventory.investment.are.known.to.be.excessive.demand.variation.and. long.lead.times..At.a.next.lower.level,.we.may.find.that.lead.time.has.increased.due. to.missed.supplier.deliveries..Then,.if.we.drilled.down.to.still.a.next.lower.level.of. detail,.the.missed.deliveries.may.be.found.to.be.associated.with.a.few.suppliers.. In.this.way,.a.team.identifies.what.may.be.the.important.variables.or.root.causes.of. their.process.problem..It.should.be.noted.that.a.C&E.diagram.is.based.on.opinion. and.is.not.a.substitute.for.data.collection.and.analysis.or.factual.information..However,.it.is.a.first.step.that.enables.a.Kaizen.team.to.create.a.data.collection.plan.to. either.validate.or.disprove.the.team’s.opinion.of.what.may.be.causing.the.process. problem.as.represented.by.the.variables.placed.on.the.C&E.diagram.

Fie-Why Analysis
Like.a.C&E.diagram,.a.five-why.analysis.is.simple.analytical.tool.that.may.be.very. useful.in.identifying.the.possible.root.causes.of.a.process.problem..Table.5.6.shows. how.a.five-why.analysis.is.applied.to.the.same.inventory.investment.problem.shown. in.Figure.5.15,.but.with.different.root.causes.by.way.of.further.example..In.this. type.of.analysis,.a.team.will.ask.why.at.least.five.times.to.drill.down.to.lower.levels. of.detail.to.uncover.the.roots.causes.of.a.process.problem..When.using.this.methodology,.it.is.important.that.supporting.information.be.gathered.to.aid.in.the.fivewhy.discussion..There.are.commonalities.between.a.C&E.diagram.and.a.five-why.

. .is. Reviewing.production.analysis.the.inventory.important. to. to. ask.in..one.than. report.by. Kaizen.should. shown.the.required.the.”.goods.invested.inventory.may.could.25. inventory.in.labor.example.of..contrast.themes.level.COGS.the. inventory. investment..they.166  ◾  Lean Six Sigma for the Office table 5.decreased.an.a.a.to.year.“inventory.sales.“effect”. would.6.turns.organize. five-why.some.or.brainstorming.increase.can.(WIP).decrease..line.This.6 Fie-Why Analysis Level of Question Effect (Output) Answer (Opinion) Inventory Investment increased 25% faster than sales last year..COGS.are. Lead time of production line “XYZ” increased by 5%. may.higher.find.major.C&E.down.This.the. the. Using.they.be.sales.percent.also.. is:. operational.turns.turns.in.“Why.be.in.As.6.in.be.to.did. 25.necessary. applied.lead.shows.In.of.by.used. However.5.of. exceeded specification? analysis.inventory.last.increase.team.faster. Supporting  Information Accounting report Why has inventory investment increased 25% faster than sales last year? Why did inventory turns decrease by 25%? Why did lead time of production line “XYZ” increase by 5%? Operational report Operational report Operational report There has been a scrap Why has machine A not been running at 95% of the problem with raw material component B. increased. a.last.inventory.diagram. an.to.from.how.material. Why.of.inventory. cost.than. Inventory turns (average inventory investment necessary to support sales) decreased by 25%.increasing. find. financial.in.Table.sequence.. to. the.five-why. faster. reports.Inventory.XYZ.(COGS).that. operational. 25.factors.sold.investment.question.percent.that.levels.example.the.have.product.example. has. required target rate? Why has there been a scrap problem with raw material component B? The component’s outer diameter periodically exceeds specification.relative.and...increased.. sales... Machine A has not been running at 95% of the required target rate.theme.is.would.useful. first.answer. percent..that. question. a.percent?”. method.in.seen.is.time.but.ratio.be.by.work-in-process.inventory.production.that.increased.percent.the.investment.analysis.A.year?.a..average.by.a. or. the.of.be..produce. Quality report Quality report Project Charter Team must investigate the Why has the component’s outer diameter periodically root causes for the diameter variation problem.focus. 5.a.ideas.In.the.several.useful.into.an.25.5. team.which. team. example.is.differences. to.of.Table.due.the.five-why.detail.into.divided.major..service.investment.

this.five-why.with.a.on.has.that.range.to.556 N 32 Figure 5.a.and.millimeters.directly. required.course.might.it.current. location.be.between.lead-time.find.its. Histogram of Time Across All Operations Normal 7 6 Frequency 5 4 3 2 1 0 0 6 12 Time in Minutes 18 24 Mean 11.can. meter.team. quality.information...a.a.analysis. found.and..high. 26..the. a.a.baseline.the.that.through. inventory. “component’s.The. summary.a.scenario..root.necessary.process.minutes.4).of.continuous..investment.must.Of.divided.time.broken.to.walking.the.continuous.analytical.making.. to.minutes”.a.15.needs.percent. lead-time.the.information..a.A. scrap.Data Collection and Analysis  ◾  167 maintained.centimeters.obtained.of.operational.gained.that.useful.prior.central..the.tool.to.rate.specification.flowing.In.very.from.of.be.level.This.that.11.In.intervals.periodically. to.lead.measured.actual.the.It.Finally.been.level.to.to.outer.financial.target.information. on.data.in.of.this..team. five-why..process. be.variable.shows.is.as.quickly.an.information.But.15 histogram (data from Figure 5..approximately.component.that.one.minutes.to.and.smaller.a.machine.problems.into..operational.materials.observe.be. along.has.variable.to.B.would.5.continuous.can.a.verified.can.tool.can.another. be.diameter. related.minutes.Kaizen.the.histogram.useful..would. enables.that.and.be. d .extent. ..is.raw.the.also.which. supported.the..report.be. a.As.central.its. by.be.example.is.11.that.location. ispersion.this.Figure.useful.exceeds.analytical.investigate.approximately.“time.”. may.be.team.when.an.from.A..from.be.scrap.would..process.to.into.the.Continuing.shows.a.in.by.a.be.process.the.running.the.average.improvements.analysis.problem.broken.based..scale. problem.keep.at.fact.by.to.can.lower.eventually.their.methodology.Kaizen.of.2.so. problem.is.material.causes.95. the..of. problem.reduced.not.16 StDev 6..of.through.and.due.variable. caused. histogram The.cause. current.

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the.75.on.each.of. Box plot The.A.shows.point.to.process..data.a.the.analysis.additional.is.same. and. are.shown.graph.methods.a.were.points. manner.the.the.the. box. which.analysis.In.variation. But. and.which..a.variables. range.relative.see.say.sample..of.that.and.data.Data Collection and Analysis  ◾  169 Pareto Chart of Process Breakdowns 90 80 70 60 50 40 30 20 10 0 100 80 60 40 20 0 Percent Process Breakdowns es rk ls rk g b n n g es ds es er iti o ro o tin Jo tio tio in m r r th iv W nt w ai a a a in i da du O ct ch Co Re W s to rdin orm Tra le T tan oce A e o f f yc S r g at e ng o In k o C of d P in B ssiv ha ed C k of Lac ong ack gne dd ce C t c A L L esi Ex nt mi La eD lu ue Li Va eq rly Fr oo on P N Count Count Percent Cum % 15 10 10 10 10 5 5 4 4 4 3 3 9 16 11 11 11 11 5 5 4 4 4 3 3 10 16 27 38 49 60 65 71 75 79 84 87 90 100 Figure 5.location.“waiting”.represented.and.plot.minimum.in. and.. the.information.box..a.dispersion.of.data.the. another.it.plots.has.of.which.several.17. in. in.the.an.as.also.the.of.are.50. comparative.of.median.other.calculated.well.higher.time”. minimum.percent.values.a.any.percentile.of.. set.above.data.maximum.These..that.of.categories.time. in.5.set.outliers.. value. calculated.17.having. this.“excess.is.variable. box.the.9.50. below. as.the.17.categories.50th..of.Also.sample. of.at.asterisk. the.the.Figure.to. In.“lost. shown.is.point.percentile.. An..time.common..are.the.Figure.a.Figure. the.are. plot.is.. more.shown.lost..sample.75th.advanced.percentile.a.marked. maximum.25th.example.rest.25.graph. the.in. in.median.central.provides.from.“waiting”.5. is.We..are.a.in.sample.5..type.A.formula.the.percentile.analytical.percent.include.represents.can.are.9).a.category.a. which.using.is.tool. plot.that. displayed..below.into.a.point..percentile.percent.from. be.and.inventory.which.values. higher.in.to.statistical.or.we. scale.75th..as.displayed.percentile.outlier. useful. A.the.data. can.values.percent. tool. has.can.set.. minus..Box.than.In. analytical.discrete.data.50th.at.a.below.the.provides. Finally.a.”.continuous..may.applied.of. shown.also. data.as.the..of.median.both.dispersion.this.5.values.sample. a..the.16 pareto chart (data from Figure 5.by.are.different.at.can.broken. .continuous.is.in.point.25th..category. box.the.various. Several. also.be.that. is.down..an.other.a. plots.. very. Figure.a.as.example.the.that.The.relative.see.be.

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18 Scatter plot (data from Figure 5.Data Collection and Analysis  ◾  171 Scatter Plot of Production Rate and Capacity Versus Rework Percentage 100 90 Units/Shift 80 70 60 50 15 20 25 30 Rework Percentage 35 Variable 2.19 time series graph (data from Figure 5.7). Capacity (Units/Time) Time Figure 5. . Time Series Plot of Production Rate and Capacity 100 90 Units/Shift 80 70 60 50 W ee k 1 W ee k 3 W ee k 5 W ee k 7 W ee k 9 W ee k 11 W ee k 13 W ee k 15 Variable 2. Capacity (Units/Shift) Figure 5. Production Rate (Units/Time) 6. Production Rate (Units/Shift) 6.7).

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25 high inentory inestment—first leel.000.000.000 $2.700 $42.Reason (Issue) 134 36 14 9 9 8 210 $10.000 64% 17% 7% 4% 4% 4% $638.100 $171.100 A B C D E F Count Percentange Project Estimated Impact** Canceled Order Schedule Change Late Deliveries Large Lot Size Missing Materials Quality Issue Total Cost-of-Goods-Sold (COGS) Inventory Investment Due to Issues Total Inventory Investment Inventory Turns Ratio ** Subject to verification Data Collection and Analysis  ◾  179 Figure 5.000.400 $66. .000 $1.900 $42.000 5 100% $1.900 $38.000.

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624 $33.164 Inventory Investment Due to Canceled Orders ** Subject to verification Data Collection and Analysis  ◾  181 Figure 5.27 high inentory inestment—second leel.341 $47.Root Cause (Canceled Orders) 9 108 10 7 7% 81% 7% 5% $42. .337 A1 A2 A3 A4 Count Percentange Estimated Impact** Project Inaccurate schedule Late delivery Missed Schedule Unknown Total $638.862 $514.164 134 100% $638.

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29 high inentory inestment—third leel. .656 $28.911 $347.000 $514.000.574 $514.341 81% 12% 10% 54% 4% Count Percentange Project Incorrect Invoice Carrier Issue Customer Not Notified Unknown Total Cost-of-Goods-Sold (COGS) Inventory Investment Due to Late Deliveries ** Subject to verification Data Collection and Analysis  ◾  183 Figure 5.Root Cause (Late Delivery) Impact** $76.341 A21 A22 A23 A24 16 13 73 6 108 $10.199 $61.

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of materials and information. Specific Process Change ◾ Modify organizational reporting structures. ◾ Create new or modified process designs and layouts. and other procedures. . ◾ Training programs. ◾ How should an operation ◾ Deploy transfer rather than be best performed? production batches. ◾ Apply mixed model ◾ When should an scheduling to operation be performed? reduce lead-time. ◾ Implement 5S. ◾ Mistake proof portions of a process. ◾ Where should an ◾ Manage bottlenecks ◾ Eliminate portions of to maximize the flow operation be performed? a process. ◾ Who should do the work? ◾ Deploy Lean. written procedures.1 Common process Changes General Questions ◾ Should the work be performed? General Methods ◾ Eliminate operations and work tasks. ◾ Create new operational and financial metrics.186  ◾  Lean Six Sigma for the Office table 6. ◾ Process audits and monitoring such as statistical process control. inspection. ◾ Group meetings (huddles). and quick response methods. just in time. maintenance. ◾ Deploy Six Sigma and related initiatives. ◾ Modify work. testing. and verbal instructions. ◾ Create new information reporting systems. ◾ Purchase or design new types of equipment. and similar Lean methods. mistake proofing.

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was.. that. measured.a. for.capability.and.cause. account.process.6.Six..problem.procedures.their.of.other.events.cost.lower.down. monitor.also.level.a.that. been.6.. verbal..metric.all.Also.monitoring.customer.based.those.segment.any.also.that.and.inspection. to..be.of.can.of.that.a.amount.should. manger.there.that.words. for.Lean.system.already. analytical.that.segment. equipment..improvements.invoiced..work.changes.and. aging.. instructions.amounts. As.Figures.myriad.5S..but.level.equipment. to.cycle. this.Six. Along. be.metrics. training. The.Lean.Using.Sigma. over.addition.analytical.related. in.on.maintenance. to.. its. example....are. any. enable.should.in.necessary.these.because.noted..will.. new. by. degraded.has.methods. supporting. deployed.exception.an.ensure.in.highlight.implement..metrics.performance.well.of..have.can.analysis.1.environments.methods.supporting.reporting.such.common.tasks.If.within.which.customer.will.. lower-level.by. analyze.an.broken.In. increase.listed.methods.These.using.modifications.... have.improvements.and.will.organization. enable.However...being.higher.advantage.be.. higher-level.industry. are. type.as.and.efficiency.systems. reasons.when.enormous.can.decisions.invoice. or. group.of.be.. charters. variations. using. be.An. to.and.demonstrate.modification. and.to.in.the.process.. work.new. an.2.maintenance. just.lower.help..performance.They.be. procedures.implemented.“percentage.discussed.by. of..and.Exception.turn. process.reporting. take.issues.daily.performance. thought..analysis.major. train. Kaizen.Lean.into.automatically.work.at.measured.Six.work.and..higher-level.improvements.process.providing. improve.of.a..reports.discussed.Sigma.8.Sigma.to.created. invoice.similar.an.to. three.a.occurs.using. clues.accuracy.probability.related.. can. can.invoice..modify. of.in.because.. performance.proposed.Process Improvement  ◾  191 display. and.a.as.fact-based. organization.the.down.testing. and.It.quality..is. a. be.an. already.should.quality. a.an. the.would.also.improvements.include.operational. improve..testing. should.modified.to. after.found. down.Six..a.balance.countermeasures. be.data.Sigma.time.captured. of.processes.effective. to.accuracy”. operational.methods..perhaps.should. down.6. be.easily.thorough.time.In.In. into.metrics. customer.analytical.an.that. metrics. small. project. (huddles). be.are..Also.of..to..or.basis.place.successful.concepts..mentioned.more..program.that.reporting. of.. could.of.infrastructure.purchase.new.information. This.an.be. mistake.on. the.equipment.employee.amount. improve.time.inspection.method...a.a.are.next.In.to. capability. amount. metrics. Finally.has.are.deployed. an. broken. drill. higher-level. can. meetings. example.to.reinforced.invoice. and. performance.include.the.of.country.at.are. in. time. will.technology.the.region.the.made..Lean. .broken.as.are. teams.summary.over.tied.and.. root...detail. process. to.improvements.this.to. aging.equipment.(IT).customers. proofing.the.Lean.process.these.reporting.or.. accounts. types.employees.systems.as.these.Table. created. successively.of.organization’s. 5S. line.Chapter.Alternatively.the.only.directly.purchase.operational. sustained.in.process. Kaizen..useful. receivable.as.and..been.It.well. and. process.analysis.improvement.deteriorate. of.myriad.concept.other.of..to.metrics.be.performance.1.have.percentage.. design..process.to. implementation. these.as.specific.

26. 5.2 100. and 3 (Figures 5.6 80.5 88.6 67.1 root cause analysis: leels 1. .4 13 12.4 6 5.0 Figure 6.0 120 100 80 Count Pareto Chart of Root Causes for Late Delivery 100 80 60 40 20 e Ca rr ie ue U 60 40 20 Root Causes 0 tn ifi ot ed o nc rr ec Cu st om er no ti o nv ic ss ri nk wn no 0 I Count Percent Cum % 73 67.7 94.6 10 7.6 16 14.6 100.8 7 5.8 82.192  ◾  Lean Six Sigma for the Office Pareto Chart of Causes for High Inventory Investment or r de d ch an ge liv er s ie el e iz iss at er ia ls Ca nc el ed Sc he e ul La te de La rg s ot M in g m O th er 180 160 140 120 100 80 60 40 20 0 d le Sc Major Impact = Demand Variation Major Impact = Lead-Time Variation Root Causes Canceled order Schedule change Late deliveries Large lot size Missing materials Other Count Ca nc e or de r l h ec an ge he du La te l de iv er ie s o el M La rg ts iz e m iss in g at er ia ls O th er Root Causes Pareto Chart of Root Causes for Canceled Order 100 80 Percent Percent 140 120 100 Count 80 60 40 20 60 40 20 0 Root Causes 0 te de e liv ry iss ed sc La h u ed le r cu at es ch u ed le U nk w no n M In ac Count Percent Cum % 108 80.0 94. and 5.28.1 9 6.30). 2.

133 0.14 Time (Minutes) Before Improvement I-MR Chart of Processing Time After Process Improvements Before Improvement After Improvement Frequency 4 3 2 1 0 0 2 4 Processing Time 6 • ese graphs show that the average processing time and its variation decreased after a process improvement.13 LCL=-0.2 use graphics to show process improements.3830 6 4.114 2.075 14 5 Processing Time 12 9 6 3 0 1 8 6 4 2 0 1 3 5 7 11 9 Observation 13 15 17 19 UCL=1.41 X=1. .48 LCL=0 Time (Minutes) 3 5 7 9 11 Observation 13 15 17 After Improvement 19 UCL=2. • Several graphs may be used together if they help communicate process improvements.568 MR=0. • ere may be several ways to communicate process improvements depending on the intended audience.Histogram of Processing Time After Process Improvement Normal 8 Period After Before Box Plot of Processing Time After Process Improvement 7 7 6 5 4 3 2 1 0 8 Period After Before 6 Mean StDev N 1. Process Improvement  ◾  193 Figure 6.

owner.to.Effectiveness. changes. specific.avoid.2 Control tool effectieness and Sustainability Specific Process Changes ◾ Modify organizational reporting structures ◾ Eliminate portions of a process ◾ Create new or modified process designs and layouts ◾ Mistake proof portions of a process ◾ Purchase or design of new types of equipment ◾ Implement 5S.sustainability.cultural. countermeasures.compares.. vary. to.or.. relative.time. root. and.aspects.this.to. rocess.the. sustain.to.tools.tools. their.into.to. In.it.is.necessary.impacted.7.of.the. will.effectiveness. process.processes. These... table 6.local.over.. process. We.discuss. is. necessary. change.useful. the.they. causes.a.and.. the. testing.process. tools.change. source.in. problem.will.next. eliminate.modified.control. discuss.change.means. the.and.chapters..office.and.6.the.this.Chapter. the.cons. are.the.integrate.For. controls. to.the. ability.difficult. the.a.to.causes.common. Sustainability.process.process. mistake proofing.project’s. application.lists.very.several.control.in.In. to. process. a.include. of. p .also.work.. combination. of. of.process. that. to.these.control.controls. changes.root.to. context..several.of. changes.eliminates.. discussions. and..change.the. written procedures.194  ◾  Lean Six Sigma for the Office In.pros. breakdowns.often. project. implies. or.their. inspection. continue.2.of.achieve.objectives. the. process. are.back.reason..methods.. discuss.. and verbal instructions Effectiveness ◾ High ◾ High ◾ High ◾ High ◾ Medium ◾ High ◾ Medium ◾ Medium ◾ Medium ◾ Medium ◾ Medium ◾ Low Ability to  Sustain ◾ High ◾ High ◾ High ◾ High ◾ High ◾ Medium ◾ Medium ◾ Medium ◾ Low ◾ Low ◾ Low ◾ Low .will.the.these. of. and other procedures ◾ Process audits and monitoring such as statistical process control ◾ Training programs ◾ Group meetings (huddles).9.we.an.cause. summary.to.Chapter.eliminate.control.organization.transferring.are. C .problem.process.In.combination. Control tool effectieness and Sustainability Table.root.the.then.by.process.various.by..will. the. process.Chapter. and similar Lean methods ◾ Create new operational and financial metrics ◾ Create new information reporting systems ◾ Modify work.employees.tools. ontrol.eliminate.the. process.of. effectiveness.used. maintenance.discuss.original.8.team.

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present.was. financial.time.contained.a.showing.200  ◾  Lean Six Sigma for the Office section.discussed.Also.or.production.be. and.analysis.in.revenue. revenue. rework.are.and.in.earlier.decrease.to.. for.a. industry.In.industries..discussion.up.location. 3.process.them.how.Figure.for. made.4.the.several..through..3.takt.as. This.financial..financial.prioritized.the.can.manufacturing. a.processes. map. as. any.yields. macroeconomic.to. quantitative.information.have. by. process. these.stakeholders.process.are.several.a.and.6.be.long.percentage.Kaizen.3.for.to..targets. for.and.or.such.and.financial. process.to.provide.4.can.of.workflows. an...reporting.revenue.is.production.analytical. if. and..discussed.3.an. and.. office.finance.calculations.operational.. the..products.be. demonstrated.adjusting..addition.broken.As.In.control.6..how.or. year.a. .scrap.budgets.as.forecasts..team. throughput.we. show.budgeting.very.Sigma..be. Example 1: Financial Forecasting A.process. include.are. Kaizen.six..manufacturing.there.annual.sales.analyzed. forecasting.will.service.targets.Communication.In.the. how.these. process.is.goals.logistics.context. to.to.points.facility. and.Chapters. other.list. These.forecasts.and.opportunities.aids.provide. product. of.3.. itself.wherever.. how.in.set.to.of.and.Kaizen.increase. setting.procurement. and.general. concepts. reports. information. reasons.to. goals.sales.5.a.in. through.statement.and.3.necessary.a. no.workflow.functional.using.. mark. strategy.forecast.failure.. an.to.information.its.forecasting.satisfy.achieved.group.by...example.team.with. previous.of. financial.Chapter.done. materials.. is.an.of. Figures. analysis.. These.data.. functions.revenue.As.or. levels.and.5.and.show. in.are.revenue.organization’s. In. there.process. by.product.provide.to. analytical. and..general.provided.the.Lean. always. on.the.is.and.is. marketing. a.well.. forms. with. is.to. to.budgeting.we.that.are.is. key.review. percentages.a.in.process.in. a. is.that.groups.targets.include.year’s. increase.very.using.ideas. important.will. or.should.and.as.collection.they. similar.examples.These. flow. showing.combined.describing. issues.map.several.organizations.quantification. maintenance.been.information.an.will.percentage.determine. to.. are.Using. for. map.goals. and. information.several.includes.in.process.a. Figures. process..budgeting.office.both.the. to.sales.reviewing. and.. organization. common.improvement.3. over.implication.addition.and.the.. symbols..and.provide.budget.This.the. and.discussions.shown.in. metric.product.7.simplified. Six.using. a.down.be. process.organization’s..useful.these.of.This.Chapters. team.chapters.be.. that.these.used.methods.capacity. the.fact.and.discussed.examples.this. allocated.starbursts..and.In. a. information.measure.of.resources.for.year’s.previous.a. service. rates.also.The.sales.mapping. every. placed. to.identified..an.services.approach. it..In.by.quantifying.meet. lower.approaches..organization’s.department.. directly.by.approach.next.tools.goal.The. at.including.attaching..planning.sales.a. mean.the..similar. improve.8.made.as.developing.both. and.Relative.also. breakdowns.basis. up.context.quantification.there.will.common. operational.and.products.forecast.required.of. other. by.process.. is.useful..will.discussion. they.this.services.

they. scarce.declining.that. functions.inaccurate. down.low. lost.Nonaligned.1. 5. revenue.financial.products. unrealistic sales targets results in wasted capacity and lost sales.margin.may.breakdowns.may.workflow.this.they.building.functions.to.are.miscommunication.process. Miscommunication.or..a. targets. well.typical. sales.or. Inaccurate estimate of current and future capacity. other.they.process. could. Inaccurate sales estimates.other.information.because.capacity.type.a. Estimate beginning and ending inventory. five.Process Improvement  ◾  201 Finance–Financial Forecasting CEO and Leadership Team Provide Financial Target (Increase Sales Revenue by 5% Over Previous Year) Adjust Forecast by Product Group and Linearly Allocate Percentages to an Item and Location Level Master Production Schedule (MPS) Offset Over Short-term. as.breakdowns.revenue.a.and. .and.. finance. Estimate required capacity. financial.of.a.This. forecasting.simple. gain or loss of major customers.sales.because. Figure..data.between.know.Operation.in.have.3.marketing.sales.6.issues.sales.but.of.agree. where. places.contribute.. 2.not.include.can.how. and.shows.incentives. Adjust revenue allocation by product group.be..As. In. using. an..increase.industry.compete. and.buildup. operations.research.inaccurate..caused.missing.of.may.by.cause.production. unrealistic.profit. Inaccurate estimates of beginning inventory result in too much or too little production which drags down the financial forecast.sales.example.process. Provide financial targets..cause.of. Forecast revenue for product group.that. it.may.example.3 Logistics Operations Sales and Marketing example 1: Financial forecasting. several.. break. biased allocations. Figure 6. Forecast All Items and Locations at +5% Over Prior Year Finance Review Forecasts with Marketing and Sales as Well as Operations Systems Forecasting Modules Operations 1. 4.. 3. as. Intermediate and Longterm Time Horizons Adjust Linear Allocation Based on Expected Sales by Product Group (Some Groups >5% and Others <5% Provide Capacity Guidelines/Modify Capacity Based on Forecasts Provide Inventory Information to Offset the Forecast Typical Issues Miscommunication. Inaccurate forecasting model parameter estimates or using the wrong forecasting model result in producing the wrong types of products.for.marketing.

a. the.laws.requirements. to.places..a.Additional.too..include.language..lost.projects.. process.of.resources.the.identify.used.templates..Process.inventory.requirements.tools. in. mitigated.activities.workflows.but.impact.these.basis.customer.more.to.that.the.breakdowns.its. inventory.financial.may.will.accounting.As. types.in.in.is.a. mean.operations..a.abruptly.important.consists.then.Figure.processes.similar.and. customers.little.simple. organization’s.accounting.shown. functions. show.given. .shown.of. build...eight.or.similar.Figure.failure.issues.are.202  ◾  Lean Six Sigma for the Office inventory. of.workflow. office.reports.operational. beginning. major.in.breakdown..to. process. communicating.error.process.planning.As..of.of.can.operations. very.one.these.of.operational.see.way.geographically.are.not.beginning.work.the. available.specifications..products.issues.or.depending.meeting. organization’s.days.to.also.also.services.within.products.breakdown.process. financial..this.with.the.they.perspective. easy.such.to.within.if.workflows.parallel.major.through.has.modes.result.is. by.governmental.and.forecast.their.adjust.4.when. estimates. workflows.and.team. a.meet.of.are.in.models.multiple.an.the.work.tasks.a.payment.Other.an.financial.manage.value.process.unit.issues. associated..a.is. inaccurate.for..Financial.one.sales.breakdowns.analyses.analysis.may.major.receivable.eliminate.process..These. formal.financial.Accounting. formally..drags.the.differences.of.Board.and.to.using.others.of.example.team.Kaizen.other.produced.series.of.regulations.of.wrong. an..and. financial.parameters.of.when.beginning.few.best.or.loss. even.if. example.the.causes.gain..root.owner.several..a. produce.other.process.forms.would.process. too.be.changes.financial..dispersed. Example 2: Accounts Receivable An.through..occur. simple.forecast.a.a. issues.identify..these.that..on.for.and.many.types. types.to.occur.Lean.and.. quickly.much.we.team.be. them.include.best.Kaizen.6.an.The.In.process.Sarbanes–Oxley.(FASB). control.able.may.an..failure.related.team..basis. other.6.increasingly.and.Six...contain. products.inaccurate.of..down.the.(S&OP).and.and.include.and.of.types..States.Kaizen. or.This.The.cycle. The..each.Any.team. causes. time.as.gather.adversely..a. be.serve. is. breakdowns.and.cost.other.Sigma.some.products.a.United. working.model.payable.and.financial.could. compliant.operations. standards.deploying.as.of. an.sales.that.the. to.forecasting.to.of.process.should.where.probability.Services.to.stream.various.stakeholders.words.organization’s.operational.anticipated.4.In.per..accuracy.quantities.and.for.production.From.operations.several.can.transaction.be.a.functions.Another.higher.But. situations. and.key.... invoice. analyze.time.them.of.failure.eliminate.to.of.an. are.and.or..estimates.process.more. ending.have...in.map.accounts.accounts.may.culture.done.with.complicated.to.root. ensure.(VSM).become.to.require.due. These. that. controls.In.and.complexity.reason. and.the.. are. fail.places.In.events.a.that.local. misapplication.inaccurate.services..forecasting.formal.Kaizen.which..historical. can.auditing.order.improve. These.the.of. and..A.

customer.name. 6.of.analysis. 8.in.in.order.of.a. 4. places.as. .product.. the.this.Figure.ordering.employee..may..become.entering.or.for.this.At. misinterpretation.an.or.a.a.of.4 example 2: Accounts receiable.request. Failure to discover missing. surplus.However.of. one. 3. Failure to protect order from the environment.process.may... addresses.may.operation.type.process.step. type. Order accuracy check prior to shipment. Invoice is sent to customer.4.root.for.customer. Invoice is sent to wrong customer or delivery not verified by supplier..This. 7. or.correctly.project.receivable.product. failure to discover missing or surplus items and related issues.issues.part.address.misinterpreted..taking.a.may.related.team’s. its.process.orders..could.operations.a.in.Any..common. Typical Issues Incorrect quantity or product is ordered. 5.these. and amounts are entered into the system or incorrectly converted by the system.first.customer’s.are. Invoice is paid by customer.. Customer fails to properly receive an order resulting in receipt of damaged items. an.a.eight.systems.error.if. 2.the.the.to.accounts.6.customer.the..inaccurate. Customer places order.have.operation.a. Order is sent to customer.charter.Process Improvement  ◾  203 Accounting–Receivables Distribution Order Is Received in Distribution Center and Processed Order Checked for Accuracy Freight Carrier Order Is Shipped to Customer Accounting Accounting System Creates Invoice Invoice Is Sent to Customer Order Is Closed Customer Customer Places an Order for Several Products Customer Receives Order Invoice Is Paid by Customer Operations 1.include.similar. Figure 6.the.basis.incorrectly.Kaizen. Invoice is not created due to missing information or is created using inaccurate information.service...product.the.an. Order is lost or potions of the order are lost.the.. or damaged items prior to shipment.even. Invoice creation.team’s.be. arrive damaged or late. Order processing. Order receipt..an.incorrect.In.product.or.second.information.of.product.This. is.quantity.a.automated. item. Incorrect names.causes.shown.a.In.serve.order.

result.Once.this.well.forecast.situation.the.capacity.providing.negative.almost..in.receivable...be. system.a.A.been.that.exposed.sales. accounting.or.and.customer.manufactured.handling.shipment..build.received.other.operational.resulting.Standards.and.warehousing. significantly.because. marketing.deployed.not.of..has.goods.can.services.to.a. having.by.customer.simply.accounts. will.products.This. .inventory.otherwise.order.store.its.orders.and.by.part.type.an.materials.occur.on.may.are.the.important.depends.of.labor.to.a.Kaizen.are.impact.a. as.delayed.Marketing.be.expense.the.result..As.the.payment. receiving.and.excess.will. more..when.of.reasons.labor. disposal.up..if.This.without.manufacturing.information.an.a.then.issues.cost.processes.their. be.and.important.manufacturing.order.received.shipment.system.because..an.necessitate.a... Example 3: New Product Market Research A.higher.may.This.. collected.completed.at. accounts.hiring.never..information.receive.for.Financial.This.in.process.an.Accounting.be.customer.various.staged.In.may.order.activities.an. and.to.processes.in.complete.outgoing.processed.be.refers... provided.a.some.necessary.employees.common.marketing. carrier.and. levels.the.customers. Accounts.customer.are.this. result.second.process.surplus..significant.receivable.is..future.Product.by. arbanes–Oxley.or.sales.inventory..missing.anticipation.lower.of.of.order.at.an.investment.is.for.related.In.an.through.significant.worst-case. products..be. S ..operational.invoice. that.(FASB).expenses. or.demand.Operation.either.conditions.form.order.also.increases.has.inaccurate.on.customers.associated..sold..product.if.by.can.poor.the. to.an. order..In.wrong..this.and. regulations.invoice.as..successfully.a.in.204  ◾  Lean Six Sigma for the Office not.placed..the.As.may.filling.may.situation.service. scenario. processes.to.organization.workflow.in.An.error.invoice.appears.is..a.being..within.loss.and.to.and.The. 90.context.will.damaged.a.arrive..may.for.research.In.result.function.if.missing.teams..is.systems.sold.customers.may.the.sales. such.of..in.in.analogous.damaged.customers.that.warehousing.been.either. are.shipped.of.systems.incorrect.situation.finally.financial.The.In.have.within.issue.is. laws..is.for.fact.for.performed.created. these.their.first.or.loss.or..a.is.products.include.dock. customer. receivable.records.to..lost.shortages.forecasts.though.sold.or..result.a.situation.has. than.new. to.In.all.the.Board.invested.. are.payment.a.it.due.eliminate.occur. days. or. at.major.inventory.be. cannot.will.that.is.or.a.defects.sixth..be.organization.audits.be. of.product. organization. transported.that.late.environmental.is..in.operations.identify.Once.breakdowns.would.into.it. operation.sent. subject.very.logistic.Invoice. an. inventory.the.the..Also.on.actual.organizations..by.the.every.for...excess.the.supplier.items..be. with.to. old.even.be.major.research.a.organization.because.than.estimates.orders..part. as.inventory.order.information.a.These.it.to.poor.the.of.customer.new. governmental.may.been.to.set.2.employees.or.and.orders.result.materials. of.damaged.in.problems.issues.service.but.customer’s.that..adverse.service.is.and.time.sales.At.prepared.the..a.to.conditions.is.to..

..e-mails.view.every. amount.and.new..A.methods.product..to.new. useful. focus.these. estimated. and. also. environments. a.in. collection.needs.that.the.more.. translate..specifications.include. tools.aesthetic. other.may.is. on-site.survey. error-prone.are.simple.A.will. and.myriad.go. for.. shown. interfaces.process.marketing.features.may. customer. among.a.goal.product...to.may.accurately.prototypes.product. of.In.requirements.is.need. process.the.Figure.the.to. information.determining.and.used.review. often. and.other. group.is..The. function. analysts..A.identifying.are...which. is.requirements.organization.accurately.of.in.new.specialized. translated.one. Sigma.design. the.necessary.is. the. marketing.if.or.requirements.by.failure.new. as.tools.specifications.concepts.breakdown.Process Improvement  ◾  205 Although. methods. of.has.In.value.they.costly.of.working.to. market.process. well.first. of.show.breakdowns.with.as.. requires.procurement.problem.development. important. data. voice. in.tasks..within.are.survey. team.not.in.displayed.customer.external. these.not.and.a.added. process.This.research.needs.and.increases. work.can.properly.capture.new.. under. their.related. or.These. and.performance.their. a.result. process.coordinates.logistics.methods.product’s.obtain.adequately.and.key.customers.a. in.product.around.to.if.how. of. Lean.. and. interviews.also.occur. reliable.customer.and.alternatively.external..discover. new.to. service.lost..customers.or.a.use.of..feel. as.could.suboptimal.specifications.a.the. relationships. functional.of. its. marketing.obtain. with.mixture. product.and. customers.shows. the.version. by. a.by.consist.analyze. that.. quantifiable.any.concepts.important.to.methods.VOC.that. best.organization. analysis.The.5..to.or. Six. the.sales.this. Finally.efficient. works. very.to. with.Kaizen.efficiently.sales.is. designs.needs. methods. product.they. or. products..the. with.process.development.alternatives.activities.of.several. and..are.of.teams.and.process.this.. operational.. product. and.In. at.occur.process..it.simplified.functional.will.these..new.. groups. research. to.customers.with..right.process.in.marketing. design.analyze.and.marketing.do. is..are.a.is..into.segments.the.issues.the.prototypes.segment. This. experience.product.functions.or.are.(VOC). data-intensive.of.be.and. feedback.increase. services.is..activities. are.important.specifications... Even..product.using. of. alternative.with. But..translate.information.issues..less.marketing. include. Example 4: New Product Development Almost..will.values.into..customer. a. the.breakdowns.This.complicated.high.back. customers.a.Common. understanding.product.failure.of. will. This.information.more.production. of.meet.These. significant. very.a.. that. and.than.an.requirements.operation. designer’s.Survey.market.issues.expectations.VOC.the. relevant.formed.and.inventory.6..a.product. team.development. new.customer.A.look.. creation.may.6.design.a. visits.complex. research. . lack. very.be..new.process.does.probability. product. work.Figure. education.to.that.to.a..customer.translation.to. review.result.words.6. this.methods.work.result.caused.VOC.very.group. complicated. circumstances. methods.different.new. cost..not.identify.service.expense. a.. focus. also.that.are.

5. Typical Issues Lack of quantification or methodical survey methods used to obtain the voice of the customer (VOC). 2.5 example 3: new product marketing research.206  ◾  Lean Six Sigma for the Office Sales and Marketing–New Product Market Research Customer Customer Needs and Requirements New Concept Acceptable? Yes No Marketing Gather the Voiceof-the-Customer (VOC) by Market Segment No New Concept Acceptable? Yes Develop Alternative Design Concepts Product Design Develop Concepts to Review with Customer and Marketing Product Design Develop Prototypes Yes New Concept Acceptable? Finalize New Design Review New Designs with Operations to Ensure They Can be Produced No Operations Operations 1. . and similar data collection methods). Review concepts with customers. Figure 6. Work with product design to translate VOC into design specifications and prototypes. All VOC information is not transmitted to product design or additional requirements are added that customers do not value or need. focus groups. interviews. 3. Failure to develop alternative designs that meet customer and business requirements and their characteristics be evaluated using structured methods. Failure to review new concepts with customers to obtain their feedback in a methodical manner. Estimate customer needs and requirements. Ineffective or inefficient survey choice of methods (emails. 4. site visits. Gather the VOC. Develop alternative designs.

.Alternatively.to.Process Improvement  ◾  207 Product Design–New Product Development Customer Requirements Received Prototype Designs Created Including Specifications. As. 3. or.issues. very.evaluation. Kaizen. process.will. activities.designs.especially.and.products. Failure to use statistically based analytical methods or design testing that correlates to actual customer product usage.these. teams.design. that.and.mistakes.. there. cause.in.eliminate. development.result. process. standardize design features. and production scrap.one.. Build.features.services. everal.use.a.higher.analytical. VOC.that. of. of.longer.is.true. of. part. process. consisting. Inaccurate BOMs.and.. Because. example 4: new product deelopment. and. to. to. during. ways. information.process. products. But. .management. several. their.efficiently. an. test.of.design. returned goods.or.. will. alternative.. it. in. the.based... caused.development.to.time.activities.Kaizen.6 Systems Operations 1.proper.more.proof.failure. the. production. a.. 4. many.the.when.deployed. example.or. errors. issues. will.or.methods. the.valid. product. be. Performance and Aesthetic Requirements Prototypes Tested Against Performance Requirements Modify Design Based on Evaluation Criteria No Performance Requirements Yes Met? Finalize Design Requirements Bill-ofMaterials (BOM) and Associated Specifications Procurement Test and Evaluation Product Design Coordinate Material or Information Flow Including Direct Contract labor Supplier Issues Operations New Design Released to Operations Production Efficiencies and Quality Customer Demand Management System (or Master Production Schedule MPS in Manufacturing) Components Supplies and Ordering Systems (or Master Requirements Planning (MRP) in Manufacturing) Standard Cost and Bill-ofMaterials Files Typical Issues Failure to use proper design practices to simplify..mistake.project. design. probability.of. consult.on. and evaluate prototypes. not. design.simplify. to.and. are.to.be.This. complicated. can.modern. can. key. which. a. 2. activities.have. stakeholders. workflows. break. major. Failure to track design issues such as warranty. miscommunication. Translate customer needs and requirements in design specification as well as aesthetic characteristics.standardize.product. failure.many. by.practices.statistically..these.deployed.prototypes. new.error.cycle. of. s .been. Create a bill-of-material (BOM) and detailed specifications for production.are. teams. Coordinate issues related to design changes. assessment.identify..may. Figure 6.rates. Also a failure to consider production capability. rework an low operational efficiencies.design.may. obtain.. with.made. down.new.building.cost. is. or.Also.. this.operations.during. other. to.be.and.testing. customer complaints.A. as.

example.effectively. skills. is. process. be. our.functions. Kaizen.potential.organization. were.while.it.that.also.we.hiring. a..common.there.is. turned. related.to. human. low.set. material.employees.because.methods.pool.qualified. e .employees.in.will. may.line. show. a.policy.hiring.relative. improve.organization.. that.have.to.a.expense. its. that. teams..field.this.a. earlier.development. located...is. must.problems. that.that.and.corporate.it.some. quick.tools..that..industries.become. broken. there.workforce.operational.employees.in. resources. had.It.the.six.resource..an. and.and.correlate. areas.workflows.to. organizations.warranty.To.This. efficiencies.employment.of.. one. way.many.as.process. this.deploying.it.to. In.these.applicants. issues..under.or.impact.is.is.of. process.has.use. that.a.conditions.as.includes.note.or. available. and.several.agencies. are.summary.among.in. A. work.services.interviewing. an.limited. discussion. chapters.well-functioning. very. As.improve. issues..In.. in.rates.working. communication.of.When..pool. candidates. worked...an. fact.communication. several... was. Example 5: Hiring Employees Recall. issues.employment. .time.a. these.CE.new. (HR). implement.third-party.to.but.production.regard.the.of.is.concurrent. 25. product. typical.that. any. all.reducing.products.this. process.a.such.Along.difficult.the. review..specific.relative.actual..hiring.laboratory.also.issues.208  ◾  Lean Six Sigma for the Office methods.key.more.others. several.organization.. listed. tasks..of.Kaizen.local.seen. actually..take.thought.. of.product.years.process..excellent.when.. very.organizational.employees.for. away.its. set.manager. service’s.recruited.As.instead.our. issues. occur.. expected.their.a.and. and. will. employees. high. The.purpose.the.and.rural.In.all.This.office.the. critical.small. the.employees. organizational. available. several. are.These.. related. continue.agency.original.organizational. if. result. of. bill.exhausted.be. to.production. where.released.stakeholders.broken. that.the. conditions.scrap.prevention.and.. retaining. (BOM). to. human. with. example....usually... to.be.resources..difficult.engineering. In.had. functions.But. a..of.the.as.low.trained.testing.leave. potential.product.provide.mandated.example. several.of.In.and.turnover. new.more.available.are.organizations. of.includes. are. expenses.exceeding. of.communication.is.the.organization.yields..policies.. and.to. after.as.perhaps.in.(CE).been.principally.and. these. it.well.potential.employment.of.Over.deploying.trying. to.for. scripts. hiring. very.types.as. into. excellent. complicated.6. complicated.customer.these.with.important.service.. hiring.. I.. also..availability.issues.interesting.contributing. was.because.as. consists. increases. whereas.other.cycle.place.and.an.attract.ways. across.service.retaining.customer. related.employee.or.because.of.improving.product.. organizations.discussing.that.a. of.percent.process..returned. a.the. can.consisted. were.mothers. process.of. improvements.. identify. mployees.promote. are.the.new. other. Process.6. occur.a.when.well.to.teams. or.in.a.goods. to.complaints. product. Figure.this.are.of. a.children.quality. shows.a..and. of. may.context.Hiring. an. be.cost.associated.process.new.market. also.new.rework.is.advertising. the. with.areas. mentioned.to.to. As..

work-hour. activities. between.it. Pay Rates and Compares to Organization Policies Hiring Manager Job Description Reviewed by Hiring Manager Job Description Is Accurate No Yes Hiring Manager Interviews Candidate Yes Does Candidate Meet Job Requirements ? No Candidate Is Acceptable No Yes Job Requisition Is Complete Human Resources Retrieves Standard Job Description or Creates a New Description Human Resources Job Description Is Posted Internally If No Internal Candidate Advertising Copy Is Created for Newspaper.that.requirements.posting.having.examples. Ineffective on-boarding results in employee or hiring manager dissatisfaction. applicants..failure.job.000.in. experience.was..hiring. job. new-employee. number.effort. hiring.type.translation.do.with. requirements.to.Inaccurate..this.each.there. experience.accurately.process.7 example 5: hiring employees.requirements. The.where. Ineffective communication vehicles for the type of job or the applicant pool.using.the. these.broken.tasks. a.. workflow.the. Coordinate job applicant interview process.and. 3. Translate hiring manager requirements into job description.concerted.. on-boarding.Important. for.see.other.my. needs. Typical Issues Inaccurate capture of job requirements such as skill levels..Process Improvement  ◾  209 Human Resources–Hiring Employees Hiring Manager Requests an Employee Using a Job Requisition Verifies Required Job skills.In.issues.include.team.percent.hiring.to.. simple. be.in. of.policies..of.new.a.similar.in.special. they.Kaizen.operations..employee.that. process. of. per.to.than.to.a. p . or other relevant factors results in wrong job applicants.not.. shows.an.job.processes. education.related.improved. of.way. of.were.into.related.retaining.relevant.with. Kaizen.to. the. 2.factors. consists.description.to.the.7.of.Issues.improve.and.are.from.in.a. example.in. interviews..a.been.It. Figure 6.be..employees.$1. start date.education..expenses.work. coordinating.which. 4. well.an. if. as.to.manner.this.hiring.becomes.capture.analyze.. well.analyze. days.to.000.once..typical. are.formal.found.division.excellent.a.of. Coordinate on-boarding of new employee.more.process. and. certain.performance.HR.people. . Web or Other Means Human Resources Notifies Candidate Advertising Job Is Advertised Internal Candidate Responds to Advertisement External Candidate Responds to Advertisement Potential Employee Candidate Accepts Job No Yes Operations 1. Each. lower-level.turnover.teams..without.description..associated.making.operation. missed..manager. manager.employees.include.has. new-employee. Figure.requirements.rate.skills.its.a.translation.as. accommodate. iring.100.resulted.hiring.solution. a.one.for.annual.changed.job. employees.termination.of. Post the job description to attract job applicants.the.often. h .and.a. a.6. as.manager.as. Poor coordination between the hiring manager and job applicant results in a loss of applicants or long cycle time.A. olicy.. operations.previous.measure. terminated.the. year.employee.or.

increase.important.is.. sourcing. to.may. systems.are. The.errors.time.the...several.lower.may.Kaizen. interviewing.fully.a. specific.professionalism.that.SPM.(SPM). these. informal.consisting.the.. The.impact.information.Issues.their. suppliers.. services.are.been.result.complex. developing..also.events. with.other.be.there.cross-functional.Web-based.issues.which.one..at. cost. an.organizations.onger. supplier. p . may.in.very.process.supplier.processes.but.in.from.final. supplier. The. on.and.may.suppliers.evaluates. supplier.simple.may.a.procurement.result.An.in. sourced. In. resulting.the.of.on-board..job..focus.with.varies..evaluated. process.shown. to.. who. upplier.collected.engineering. timeliness.Typical. system.production. requirements. Example 6: Supplier Performance Management The.systems.associated.and.evaluations.This. this.are.their.information.cost. types.may.it.supply. procurement.6.situation. added.delivery.also.when.a.The.SPM...be.in.more.evaluate.coordination. a. build. conducting.create.performance. rating..to. or.workflow. and.conditions. a. approved.of.Larger. audits.can.the.their.tends. SPM.an.from.the.. are. there. improperly. year-over-year.performance.range.evaluates.processes.also.8. orders... process.in.benefit. only. activities.and.the.also.higher.in. or. supplier.the.Excel-based.be..providing. second.among. most. begins.description.poor.of. their.very.a. may. the.over.jobs.of..which. likely. relative.new.contribute.simple.organizational. few.other.on. have. the.process.a.of.and.to. the. delivery..the.exist.organizations. to.the.need.problems. team.of. of.relatively.relate.to.also. s . organization. are.process. turn.quality.which. in. costs..SPM.a...complicated. listing.operations.varies. quality.. been. applicants..process.handoffs.competition.and.to.these.pricing.of. of.accuracy.time.tend.activities.performance.complexity.SPM.some.within.process.within.improve.performance. conditions..Miscommunication.suppliers.new. whereas.suppliers. In.as.different.with.ones. activities. of.root.with. operation.or. l .suppliers.between.material.functions.spreadsheets.of.critical..suppliers.breakdowns. characterized.timely. miscommunications.evaluation.point.varying. systems.between.on-time. posting. providing. time..these.service.. products.based.employees..report.many.systems.evaluates. coordination.level.probability.and.chain.organizations.performance.several.breakdowns. suppliers.is.manner.to.As.there.properly.of.systems..on.These.Finally. .often. of.failure..deployed.internal.organizational.causes.the.in. with.management.add.several..labor.they.increase. erformance.based. approved.span.of.by. a.degrees.in.based.coordination.organizational.innovation.in.industries.factors.point.relevancy..SPM.issues. smaller.design..to.. In. order.process..because.occur.in. an.has. use. ones. be. unacceptable.an.hire.. time.will..210  ◾  Lean Six Sigma for the Office requirements.supplier’s.cycle.on. cost.and.additional. result.a.can.quality.this.identify.At.may.is.supplier.customers. operations.procurement..to. listing.of.simple.information.sensitive.the. in. The.and.This.to..their.functions.larger.eliminate.professional.best.any.to. these.Figure.across. reductions. example.to. an. and.supplier. interviewing.as.

An. highly.Appendix.is.. has.a.. discuss.of.a. is.and.parallel.. Typical Issues Failure to develop a system to rate and approve suppliers results in higher procurement cost as well as delivery issues. using. in. changes. information.. been.provide.. Figure 6.system. possible. value. Evaluate supplier performance. logistics. operational. and.to.approach. this.result.software.time. customers. Poor coordination results in a failure to evaluate a supplier from several organizational perspectives including design.an.suppliers.having.rework.processes.rating. built.. especially.in. Contract Labor.those.performance. Coordinate suppliers across the organization. emphasis.of.a. some.office.time.as.to.advantage.we.over.quantified. will. Although. Ineffective or inefficient supplier rating systems fail to provide suppliers with information necessary to improve their performance. process. it.this. finance.inefficient. in. An. model. be. i . on.necessary.supplier. book.simulation.process. systems.will. Source to suppliers. outputs. and customers..loops..useful.relative.Process Improvement  ◾  211 Procurement–Supplier Performance Management (SPM) Supplier Receives Order for Information. manual. of.. workflows.process.Ball®.simulation.inputs. Poor communication to suppliers results in inaccurate information conveyed to suppliers or cycle times may be extended unnecessarily.the. including. (VSM).not.may.simulate. a.8 example 6: Supplier performance management (Spm)..it. of.such.that.cost. logistics. stream. 4.workflow..improve. evaluate.with.to.their.Crystal.as.and. .As. p . interactive.yield.. finance. external. 3.process. and.various. to. be. map.approach.or.operations. creation. versions.of. erspectives..complicated. 2. the.will.to.neffective. Develop approved supplier listing.create..1.to. design. or Materials Supplier Supplier Makes Improvements Procurement Coordinate Material or Information Flow Including Direct Contract Labor Yes Operation Produces Product Designs Finalize Product Design or Make Changes to Current Designs and Update the Requirements Bill-ofMaterials (BOM) and Associated Specifications Component Suppliers and Ordering Systems (or Master Requirements Planning [MRP] in Manufacturing) Supplier Issue? No Operations Product Design Customer Requirements Received Customer Demand Management System (or Master Production Schedule [MPS] in Manufacturing) Standard Cost and Bill-ofMaterials Files Systems Operations 1.once.models..

list..benefits.will.a.Figure.project.ways. failure.simulation. production.a.anticipated.and.6. internal.where. prioritized.not.Kaizen. projects.a.Figure.shown.A. customer.VOC. earlier. several.causes.This.without..recorded. was.of.the.An.the.several.for.entitled.to.related. information.improvement.additional.and.teams.product.matrix.eliminate..10.to.a. benefits.”.similar.using.projects..to.in.with.identifying. products. discussion.10.charters.market.analyses. specifications.Kaizen.their.in.a.performance.212  ◾  Lean Six Sigma for the Office In.Six.can.will.prioritized.analyses.and.noted. transferred.teams.Figure. new.improve.become. using.these.should.returned.This. productivity.a.an.Figure.was.this.in.for.in.root. the.quantitative.These.complaints.also..this. using.discussed. that.productivity. poor. a.detail.strong.Kaizen.Sigma.as. charters.research.this.as.are..It. cause-and-effect.activities.that.next. and. c .of. .using.projects.to.approach.be.productivity. requirements.in. information.critical..to.and.organization.to. other.shown.projects.path.that.activities.important.in.and.financial.Kaizen.a. through.should. inaccurate. and.continue.(C&E).team. The. translation. their.is..deployed. in.lack.been.6.or. opportunities. prioritized.. quantification.6.to.. their. Our.that.to. of.performance.Figure.chapters.future.5.the.”..the.operational. potential.Using.can.Kaizen. design. be. are.. design. root..and.discuss.addition.done. characterizing.should.by.actionable.a.was.Kaizen.is.always.ideas.prioritize.to.of.a.actions.improvement.shown.goals. business.approach. teams.event. these. improvement. should.business.how.resources.information. in.additional.poor. chapters.the.research..focus. be.from.and. that. being.ideas.teams.issues.the.new.is.few.of.6.it.build.operational.is. the..gathering.business. into.process.that.Figure.projects. reviewing. back.increase.Chapter. properly.be.the.review.These.identify.formally. In. Recall.tool. analysis. project.in. to.issues. provides.project.problem.Kaizen. supplier.6. team.system’s.can.a.information.variety..team.the.included.the.related. between.process.a.identify.sections.create.of.incentive.can.if..showing.their.of.will.also. concepts. assessment.formally.shown.“root.provide.In.Lean.worksheet.demonstrates.we..operational.one.low.9. aligned.may.shown.team.complete.. with.example.cause. to. reated. the. marketing.resource. emphasized.has. problems.example.should. identifying and prioritizing improement opportunities An.a.as.in. and.advantage. relative.a.project.chapters.Recall.worksheet.which.analysis.project.identification.future..of.process.satisfaction.which. this.customer.. manner. can. projects.to.implies.performance.reports.to.an.potential.immediately.ideas.leadership.Prioritization.during.projects.9.”.its.completed.earlier. improve. projects.causes.9.concept.of. that. within.a.include.This. forth.in.warranty.. customer.well.one.relative.to. with.are.similar.analyses. worksheet.process.10.to. management.listing.was.suggestions.of.objectives. cause.project.be.in.be.in.requirements.have.to.bottleneck.“required..eventually.to.executed...communicate.customer. Kaizen.Kaizen..“future.the.difficult.improvement.and.6.team.the..an.which.

total.of.are.adding.a. or $2..of.changes.weighting.than.The.1.having.survey. Future Performance: TBD Anticipated Benefits: TBD or.causes.suitable..meeting.6.one.enables.shown.made. and other metrics. This has increased the leadtime of new product releases from 100 to 200 days and increases development costs by 50%.000 annually. more.5.important.alternative.lower.Chapter.Process Improvement  ◾  213 Kaizen Project Worksheet: Date: Project Number: Process Workflow: New Product Marketing Research Process Owner: Team Leader: Team Members: Kaizen Opportunity: Improve the process for translating sales information to design engineering.presented.. Figure 6.customer.poor.Projects.those.that.incorrect.to.to. Summary Table.superfluous.in..a.requirements. this can be taken from the projects charter. to.10.more.6.performance. financial.prioritization.common.designs.eliminate.weighted.Figure. m .of.customer. and graphs to show current performance baselines of operational.weighted.the. Root Causes: TBD Required Actions: TBD Current Performance: Insert metrics.deployment.listing. and.business.to.total.root.methods.described.be.the.It. identify.can. anner.several.a.higher. Problem Statement: All VOC information is not transmitted to product design or additional requirements are added that customers do not value or need.specifications.be.the.or.000..a.process.for.9 Kaizen project—new product marketing research. if historical information is known.calculated.process. ..having.ranked.was.and.in. charts.in.a.

various.with. using..as. improvements.processes. gain..mentioned.This. and.process.a. issues.process.process.process.Figure.and.lower.programs.Typical.should.. are.combination.demonstrated.to.chapter.effectiveness.related.particularly. as. and. for.cost.section.concepts.common.organizational..8.they..group.6.. These.shown. inventory. of. types.model.6.result. that.vary.Figure.statistical.it.1.process.and.testing.In.As.to.specification.budgets.verbal.may.establishment. relative. create.prior.that.want.their.or. shown.control. training.apply.the.showed.be.such. increase.It.As.These.and.were. These.listed. modification.office.balance.in. these.was.include.meetings.less.tools. that.miscommunication.achieve.sustainable.be.6..and..entitled..work. management’s.related.of. cause.typical.used.may.to.to.effective.6.2.controls..consider.some.and.goals.well.and.breakdowns. demonstrated.and. through.was.to. Figures.1. inventory.audits.an.for.is.their. occur. valuation.4.recommendations.project’s.the.important.a.procedures. be..4.where.forecasting.poor. internal.processes.control..five.included.related.addition..6. to. issues.discussed.process. time. should. to.project.as.that.as. Figure..control.in.3.six. situations.consists.. in.of.in. mentioned.of..(SPC). the. analysis. types. example. cycle.Table.inspection..between. ..functions.other. how.methods.“General.improvement. to.questions. analyses.Figure. such.finance. root. issues. a. business.of. use. Table.10 prioritizing new product marketing research projects (similar to Figure 5.office.support.the.we. investment. process. process.6.4.and.6. should. the. The.214  ◾  Lean Six Sigma for the Office Rating of Importance to Customer 10 1 9 2 7 3 Cycle Time 9 4 Warranty Cost 9 5 10 6 9 7 9 8 Rework Costs 9 9 Design Labor Costs 9 5 8 6 5 7 Customer Satisfaction Standard Cost Returned Goods Customer Complaints Scrap Cost Sequence Project Lack of VOC quantification Reviewing concepts with customers VOC information not given to design Lack of alternatie designs Incorrect survey methods Nonessential information added Total 573 562 556 428 368 336 6 4 1 5 2 3 6 9 6 8 4 3 7 7 6 6 3 7 8 7 7 5 5 6 7 8 8 4 5 3 6 8 7 4 6 4 7 9 6 7 5 3 8 4 7 4 5 3 6 5 7 3 3 2 Total 360 324 266 315 315 370 279 234 360 Figure 6.instructions.sustainability. operational.controls..in..... in. and.example.6. asset. within..financial. case.Questions”.and.several.improving.additional.process. used.operations. Kaizen.the. teams.also.improvements.and.a.process.those.These.maintenance..asking. a.22).then.. processes.of.yields.

.through.. 1996. Jones..Peter.result.Work systems and the methods.Schuster.Media.. Lamming.a..Auerbach.Nick.of..Systems modeling for business process improvement.Groover.and..Hines.Prentice. Suggested reading Wil.Rich. P.Kaizen.2008.Inc.van. ....Operational excellence—Using Lean Six Sigma to translate customer value through global supply chains..Press.Essential business modeling. measurement and management of work..W..numerous.Kawalek.Cambridge..Aalst. James..2005.Process Improvement  ◾  215 issues.Martin. discussion.Saddle.. Cousins...MA:..eds. Womack.New.2000... The.Mark.... conclusion.Value stream management.San.New.teams. and..2003..Artech.&. David.Workflow management models.Upper... is.Business process change—A manager’s guide to improving.New.a. and.Morgan. Lean thinking—Banish waste and create wealth in your organization.Kees. and automating processes.York:. Dan. improvement..including.be.P.Richard..always.Bustard..O’Reilly...methods.Norris.Kaufman. Jones..der.. redesigning.Havey.. Mikell.are.. this..assessments.Pearson-Prentice.Francisco:.York:. Paul. Michael.River.should. from. James. improvement. and systems..and.As. process.organization.van.Norwood.Hall..Hee.operational.projects.Inc.Sebastopol.2007. Peter.York:.Paul..MIT. opportunities.by.Simon. that.Publishers.CA:.2000..NJ:.identifying.MA:. Daniel.an..House. methods. T.variety.Harmon.Hall..2002..

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will.As.. situation.But. Have organizational barriers to the change activities been identified and countermeasures developed to mitigate their impact? 4. improvement. to.Six.and.people. of. we..be.1 Change readiness 1.closely.owner. that.the.scarce.their.well-structured.are.to. Is a communication infrastructure in place to support change activities? 5.of.As.and.objectives.countermeasures. organizational. be.improvement.sequentially.their.situations..done.support. Are goals and objectives at all levels of an organization integrated to support change activities? 2.activities. make.priorities. have process workflows been modified and controls implemented to ensure the changes are sustained over time? 10.must.by.collection. resources.likelihood.work. their.all. a..of.the.1.senior.process.work.important.not. table 7. process.one. Table.team. These. stakeholders.is.process.and.stakeholders.is.include.root.a.senior..may.increase.high..other. may.local.immediate. bonuses. with. local.their.organization.to. will.improvements.) 3.there. Have process controls been fully integrated into the performance management and control systems? . several.but.also.is. Are resources available to support the improvement projects? 7.methodologies.that.the.project’s.their.In.analysis...work..other.their.through.gain.These.able.a. stated.. larger.result.realize.business. certainly.that.process. obtain.many.team.outside.improve.ways.align. Are rewards and recognition systems in place? (These include promotions. agree.critical.identified.with.more.having.of.the.not. suggestions.of. Have project charters been created to support the change objectives? 6.these. not.the.to..resources.work.criteria. Once countermeasures have been identified.process.have..with.to.a. key.a.Sigma.implementing.that.are..This.result.Kaizen.a. supported.analysis.cause.there.that.successfully.successfully.and.to.team. the.or. Recall.require.within.As.success.process.commitment.Building a Business Case for Change  ◾  223 Change readiness Lean.have.a.is. necessary.causes.because.root.team.the.easily.properly.initiatives.or. from.Kaizen. and other benefits. project.breakdowns.key. it.implemented.work.managers..to.must.and.. This.are. an.that.This..and.project. changes.project.example.be.may.well-defined.corresponding.7.organization. Has training been created to provide the relevant tools and methods necessary to support the improvement projects? 9.a.to. describe.process.data.activities.several.an.a.team.has.competing.lists.a.a.critical.improvements. will. be.. activities. possible.using.eliminate.management’s.will. Have roles and responsibilities have been defined to support the improvement projects? 8.and.goals.likelihood.been.part.benefits.that. the. employee recognition.process. if. pay increases. by.owner.team.

that.activities.and.with.Communication.improvement.it. be.context.executives.the. that.the. objectives. an.competing.organizational.projects. by.consistent.umbrella.process.that. interests. their. properly..improvement.overall. required. a. be.Six. to.into.result.organizations. correct.to. newsletters.agree.changes. project’s.well. increases.of.other.will.there. individuals. of..context. This.by. bonuses.it.There.stakeholders.characteristic.their.to.other.that.be.are.will.higher.improvements.especially.be. time.senior. than. creating. may. project.Lean.announcement. stand-alone. However. are. performance.despite.the. drive.key.analysis. a.This. or.is.many.are.fully.economic. and.their. a. of.degrees.on..as. later.contrary.priorities.its.within. organization.the.are. types. organization’s.another.programs.competing.if. Kaizen.implement. the.. employee. and. sometimes.that. this.process. to.these. implies. goals. different.there.this.performance.individual.describing.benefits. recognition.224  ◾  Lean Six Sigma for the Office many.strategy.required..charters.an.eliminate. may.Process... to.must. many..senior.true. monthly.loss.barriers. at.impact.be.larger. so.management’s.is. cultural.that.major.process.always.annual. Follow-up.be.who.called.impacted.quantifiable. changes. work. other.its.the. or.to. In. Still.well.. provide.that. of. similar. behavior.integrated. the.their. do.busy.should.organizations. as.as.important.Excellence.that.but.larger. In. continued..improvement...to....benefits..an.with. Incentives.the.that.an.extent.initiative.across.prioritized. individuals.people.and. in. activities..to. their. their.making. changes..premise.Kaizen.be.in.. how.proven. is. formal.as.several. Kaizen. management. of. can.benefits. power..for. prioritization. and. may. organization.an.As. and.integrated.the.. support.In. will.have.projects..organizational.integrated.just.a. and.characteristics. competing. .an.employees.been.earlier. objectives.resources.initiative. to.as.a.statements. will.expected..do.will.. within. assigned..plans.countermeasures.business.this.already.its. should..Sigma. may.which. the. detriment.consideration.types.a..chapter. chapter.the. localized.benefits..are.reason.professionals. the. formally. stakeholder.assignment.an. include.also.will. essential.activities. pursuing. individuals.with.team.are.example. proper. deploying. these. include.impede. pay.employment. team.benefits..for..message.organizational.into.various. discuss.in. those.be...of. the. which.. organization.key.structural.and. other. senior.requires. even.. a. Communication.a. individuals. who..provides.the. We.working.day-to-day.personal.negatively.. any.deployment. of.given. the.proposed. It.that.their. This. an.employees.an.should. than. execution.. given.any.to.levels.should.Excellence.changes. is.projects.and.Another.recommendations. that. own.technological.stated.may.barriers.organization.barriers.As.of. when.there. according. deployed. their. But.planned.by.through. information.the.a.an. also.. incentives. their.has.rather.understand.environment.have. is. goals.been.not.the.projects.initiative.In.major. In.business. and.on.to.was.This.working.important.there. promotions. rewards.or.of.this.having.simple. Operational.process. be.process.. be. situation.of.be. for. is. especially.their.it. communications.initial.by.business.than. improvement.process.projects..an.of. evaluate.be...of.but.or. events.communication.projects. project.way. pursue. analysis.a.initiative’s..mentioned.made. projects. obtain. to..improvements.or. require. initiative.support.a.to. support.describing.

been.is.will. to.process.reinforce.Finally.controls.various.it. in.be.new.the.. Are there any known risks to the project? .an. plan.process.may. if.an. controls.points.process.an.ensuring..also.. sustained.the. between.more.its.the.the.that.will.forward?.improvement.owner.measured.integrated.larger. the.reached. manner. and.employees..documented?. its.implementing.useful. have. cause.communicated.will.plan.known.to.Have.and.be.to..initiative. Did the project’s countermeasures or solutions provide the expected business benefits? 7.important. transition.cause. is.the.systems.plans.Chapter.also. project. expected.the.and.root.there.example:.time.to.the. solution.process. business.effective.and.and. event.those..countermeasures..to.process. become.are. Did. documented.listed.been.benefits.this.easy-to-understand.discussed. day.point.may.local.a.context.systems. a.a. first..going.Over.important.back.that.owner. during.key.there.should.topic. information. How will the process improvements be measured going forward? 8.in.team. to. stakeholders. the.it.the.project.with.work.a.and. control..by.problems.be.use.team.Have.2.management.the. Have all control systems and reaction plans been documented? 4.was.process.what.questions.to.ask.A.should.controls. a.tied.trained.. and.required.Kaizen.Kaizen.mangers.reaction.local.control.day. a.project.it..in.project. Have the project’s improvement recommendations been tied to its root cause analysis? 2. documented. be.people..increase.as.fully.process.the.It.has. problem.questions.is..8. these.a.in.In.a. this. answered.team.project’s.Can.similar.the.be.this?.key. step.in.by..work.2 important project transition Questions 1.very. control. Eventually.7. a. of.the. project.the.talking. day?. its.to.owner.successes.be. Are.This.is.also.Table.team’s.Are. a.how. every.control. transition.obvious.process. Are the process controls effective? How do we know? 3.to. through.in.project.and.know.throughout.recommendations. roles. analysis. the.organization. Have people been trained to use the new process controls? 5.an.defined.back.an.regarding.was.been.analysis?.These.smoothly.Have.to.interaction.organization’s.otherwise.consensus. table 7.with.is.within.proceed.eliminated.changes.Local-level.improvements. root.are.do.execution.to.team. using.controls?. provide..that. project transition At. into.organization. formally.For.process.process..any. Kaizen.responsibilities. a..this.be.project?.and.deployed.we.its..How.risks.the.benefits?.how. be. changes.because. will.all.Building a Business Case for Change  ◾  225 websites.initiative.new. Can the process controls be sustained day to day by the local work team? 6. been.important. questions.project.

order..with. An analysis of the infrastructure factors and risks that facilitate or inhibit the proposed changes. are.understand. that.organization’s.project’s. an. will. Development of a communication plan of the changes in an easy-tounderstand format for the organizational stakeholders. made.1. organizational. process.the.improvements.of.implementation. describes.elements. characteristic. 3.of. business.organizational. A stakeholder analysis to identify key stakeholders and their positions regarding the countermeasures or process changes as well as the impact of the changes on key stakeholders.addition. factors...and. activities.impact.also. analysis.Integral. analysis..countermeasures.An. process.this.has.the. political. and.the.organizational.done...barriers. Identification of countermeasures including their benefits and resource requirements as represented in the form of a cost-benefit analysis.a.by..their.4.. related.of.characteristic.analysis.business.is.a. change. this.these..This. of.is. benefits. root...can.creation. and.discussed.7. incentives.team. includes. of. In. inhibit.analysis.the. necessary.Chapter.change.process. poor. the. ability.of. performance.on.type.must.of. rewards.change.of.deployment.activities.. countermeasures. is.A.is. the.was.comprising.detailed.process. or.successful. 4. key. A stakeholder impact analysis to evaluate the impact of the changes on key stakeholders.a.to. example.understanding.associated..infrastructure. factors..case.a.second. identify. may. This.the. regarding.this.of.that.an.stakeholder.of.3 Building a Business Case for Change 1..of. 2. promote.the. their. analysis. the. proposed.in. case.Figure.cost-benefit. to.be.. to...a. activities. in.understanding.organizational. and other organization factors that may impede the deployment of process changes.In.may.a. elements.stakeholder. culture. impact. relative. their.A. the.business.been. causes. several.Table. eliminate. including.6.and. be.important. customer.negative.countermeasures. must.example. expected. in. 6.plan.of.of. creation of procedures.an. stakeholder.requirements.a.key. to. a.full. a.deployment.stakeholders.is.supporting. for.important. and.shown. 7. characteristics.case. evaluated.stakeholder. business. aligned. type. to.An.and. These.analysis.include. infrastructure.positions.and. analysis. A resistance analysis of the cultural.creation. of.scheduling. infrastructure.plan. that.of. to.3.related. technology. it.resource. lists.226  ◾  Lean Six Sigma for the Office table 7.component..developed. 5.positive.training. . Scheduling of countermeasures or improvements as well as related activities such as training.documentation.to.to.major.prevent.to.changes.how. for.important. benefits. In.a. recognition.stakeholders.high-level.. and similar supporting activities.communication. other.a. and. changes. for.6.6.their..conducting.Once.the..directly. change.includes.changes. As. specific.impacts. Building a Business Case for Change Table. is.

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Increase from Volume . Cost of Goods Sold: . Problem Statement 2. Implementation Cost 14. Total Benefits D. Revenue Benefits 10. Other Cost Categories: .Scrap .Direct Labor C. Compensating Metrics 9. Cash-Flow Benefits 12.Warranty Project Charter Figure 7. Summarized Benefits 4. Cost-Reduction Benefits 11. Revenue: . Project Metrics 8.Accounts Receivable . Cash-Flow Benefits: 13. Project Objective 3. Financial Metrics 6. Cost-benefit analysis.Material . Operational Metrics 7.228  ◾  Lean Six Sigma for the Office Project Alignment Building the Business Case 1.Accounts Payable . Resource Requirements 5.Inventory Financial Classifications A.2 1.Rework .Increase from Price B. . Net Benefits .

the.stakeholder. Kaizen.are.process. a.reduce.the.to. a .helps.of.must. for. improvement. project’s.increase.analysis.other.avoid.organization.described.to.or. In.a. future.be.projects.including. but.communication.project.in. designed.stakeholders.should.analysis.are.benefits. Kaizen..or.version..may.suggest. its.organizational.. improve. identifies. are.shown.a.in. a.are. team.stakeholders.noncompetitive.the.to.local.a. been. ctivities. team’s.project.to.analysis.problems..to.identified.7.by.net.Kaizen.will..be.avoidance.cost-benefit. collection. It.support.many.The.are.key..analysis. have.supported. team.that..root. analysis. team. quickly.the. because. or.its. be.year.benefits. analysis.the.costs.benefits. to.modifications. the..way.stakeholder.executed. periods.planned.projects. be.The.approach.problem.the.there. potential.communicated. identified.provided.and.implementation. or. the.cost.But.causes. identify. different. project.financial.(NPS).of.information.a.benefits.. and. identifying. to. methodologically.the. by. an.NPS.hazardous.stakeholder.with.identifying.and.usually..of.owner.to. in..shows. analysis.ways.long.of.process. .Also.ensure.to. project.the.is.process. would.in.Figure. stakeholders.the.cost-benefit. need..projects.. analysis.to.to..An.of. where. example.it. concerns. its. key. in.of. impacted. stakeholder. would.of. intervention.using. as..elements.be. either.cost.can. useful.of. project’s.or.Building a Business Case for Change  ◾  229 to.project.addition.. today. are.financial. score.useful.. create. be.analysis.they.review.alternative.improvements.benefits.of. support. expense.A.analysts.quality.of. the.types.a. improvements.revenues. in.several.project.countermeasures.root.summary.governmental. perspective.its. a.including. analysis.to...that.3.to..projects.key.related.the. a.approach. a.delivery.analysts.ensure. Key Stakeholder Analysis Figure. according.analysis. a. useful.must.added. ecommendations.detractors.3.management. A. is.process. by.team..long. labor.in. organizational. and.this.that. analyses.type.. whenever.and. lower.is.process. resources. Once.key.a. key..costs.a. well.improvements.take. include. providing.that. a. Cost. to. material. team.increase.a. during. key.solve. and.to.strategy. time..promoters. An. to. example. data.These. to.assumptions.analysis. Kaizen.key.delivery.trained. noted.several.that. Another. should.other.modified.or.its. after. that.by.eliminate.time.and.ensure.that.project’s. enables.team.actions. stakeholders. projects.benefits.An.stakeholder.result.identify.This.to.advantage. improvement.groups.that.a. reducing.reinforce.. is. or.times.schedule. improvements.a. engages.begins.includes.a. include. a. stakeholder.documentation.preliminary.there.work.satisfaction.material. eliminating.is.clearly.key. designed.issues.quality. future..have. both.. eventual. be.7..to.modified. receiving.a.to. analyze.or. supplier.is..stakeholder.In. productivity.required.promoter.causes.types.customers.this. of. likely.future.Financial.and. r .poor.the.analysis.a.larger..stakeholder.various. as.to.key.Kaizen. key.must.be.is. key.the. its. Projects. team. in. to. the. expenses.expense. satisfaction.From.original...for. stakeholder. fines.The.Additional. through. avoidance.of. it.expenses. stakeholder.key. would. its.created.

or.NPS. The.of.was.the..to.project.10.others. as.service.and.organizations. scale. team.ratings..NPS.to.because.”.world-class.the.asked.with.other.survey.are.stakeholder. attributes.on.a.would.percentage.likely..sales.8.to. Key stakeholder analysis..9. is.NPS.. be.issues.are.ranges.10.0..NPS.service..percent. consider.in. benefits. F.and.project’s. It. reported. .that. eliminating.approximately.In. range. in. Harvard Business Review.0.subtracting.is.identified.unlikely.goal. recommend”.is.for.to.to.the. neutral.are.differing.or.correlates.ratings.the.It.support. calculated.. an. Reichheld.The.to. as. Reichheld..ways.have. December.as.a.than.summarize.between. to.their.barriers.recommend. A world-class NPS benchmark is in the range of 75% to 80% (Harvard Business Review).analysis. P .NPS. without.into.incremental.usually.and.Ratings.by.on. a.7. that.will.method.to. a.to. A. In.”. part.an.a.as.consider.specific.in. risks.10. of.this.stakeholder.better. the.project. Article Number 5534. and. NPS.product.to.detractors.that.A.or.a.various. NPS.to. You. statistic.a. using. “The. of.industries..0..3 2..team’s. s . neutral.and. by.detractors.correlates.230  ◾  Lean Six Sigma for the Office Stakeholder Group What are their concerns? How do we need their support? What actions should we take? Stakeholder Group Baseline Promoter Revised Promoter Follow-up Actions Promoter Question: Would you support this project by recommending it to others? 0=Unlikely 1 2 3 4 5 6 7 8 9 10=Highly Likely • An average NPS of 16% was calculated over 400 companies in 28 industries. Frederick.NPS.key.are.not.questions.key.16.by.or. was. responses.NPS. entitled..a.scale. Need.types.by. to..in. classified.important.are.question.will.“extremely..defined.from. in.more.75. Number.The.important.” December 2003.that. promoters.of.various. entitled “The One Number You Need to Grow. discussed. are.the.to. was.concept..“extremely.article.they.project.gain.its.percentage.a.of.key. romoters.6.a.80.summary.if.their. considered.and.defined. are. one.percentage.is.customer. not.key.execution.is.the.to.correlated.is.of.that.a.to.also.scale.to. Frederick F. a. (5534).percent.rating. 2003.recommend.stakeholders. This.the.final..average.400. article. requires.attributes.experiences.0. Figure 7. and.analysis.than. ervice.stakeholders.often..determine.as.The.decision.between.the.to. One. project’s.calculated.modifications.Detractors.product. across.and. views.is..and.from.product. Grow.a. that.10.same.people.of.recommend.that.rating.reported.customers.

of.is.shown.is. team..execution.chapters. Certain. all. situation.team’s.conflicting.of. minimize. data.to.that..and.a.project.stakeholder.. than.discussed.efficient.help..recognition.methods. have.establishing.tools.barrier.These.On. the. process.collect..the.and. changes.7.negative.Kaizen.tend.stakeholder.is.by.as. impact analysis of key stakeholders. by.will.busy.necessary. oncept.and.and.the..a.is.each.This.been.it. effectively. Figure. its. c .are.systems..and..training.is.people.risk.of.impacts.plan.have.impact.plans.level.additional.more.are.an.in. solution. these. originally.information.of..Figures.4.reward.. ensuring.organization’s.concepts.diverse.the.results.of.useful.development.these. team’s.change.in.its.of.be.resistance. developed.and.Countermeasures.project.These.the.of.Several.proposed.priorities.. considered.Building a Business Case for Change  ◾  231 Stakeholder Group Countermeasure/ Improvements Positive Impacts Negative Impacts Negative Impacts Mitigation Activities Potential Issues Success Probability (Risk) Figure 7.the.and..stakeholder.in. this.risk.a.of.this.shown. evaluate. Kaizen.Figure. important. improvements.because.a.alignment.project.of.of..require.and.to.difficult..4 3.key.The. in.concerns. the. prior.team.based.7. team.mitigation.is. be.high.mitigation.3.goals. not.Figure.an.key.summarized. the.objectives..this. to.potential.In. a. and.ensure. Also.and.positive. front.a.are.very.characteristics.5.effective.5.in.Kaizen.more. up.countermeasures.7.barriers.viewpoints.analyze.on.countermeasure.address.stakeholders..analysis.organizational.to.with. do.change.may.process.people..have. of.to.to.obtain. by.to.promoters.7.been. objectives.estimated.analysis.process. been.on..include. .7. include. those..Kaizen. An.analysis.to.organizational. A. Kaizen.In. context.right-hand.analysis. deployment.first.to.of.the. to.previous.goals.countermeasures.organization.promote.. a. recommended.side.key.4.type.aligned.using. fear.These.introspective.characteristics.solutions.changes. communicated.in-depth.focus.a..the.having.the.whose.barriers. empowerment. can. unknown.tools.

final.required.the.it....to. in.1. responsibilities.-coordinated..then. an. .bureaucracy. The.is.this. roles.execution.Kaizen. organized.the.the.common. activities. assumes.the.do. leaders.be. is.of.1. develop. their. and...Figure.and. The.issues.this..eliminate. to. part.one. is. is.have.professionals.Table..One.obvious.barrier. and.causes..roles.down.232  ◾  Lean Six Sigma for the Office Promoters of Change • Alignment • Communication • Empowerment • Tool training • Rewards & recognition systems • Clearly defined roles and responsibilities Barriers to Change • Conflicting priorities • Fear of the unknown • Bureaucracy • Limited training • No rewards & recognition • Poorly defined roles and responsibilities Balance Point (No Change) Figure 7. non-value-adding.training.that. barriers. complicated.cannot. shown.a.correct.a.recognition.reward.teams.this.complicated.manage.role.controls.how.root.next.manner.are.should.these.is.of. change.negative.organizational.is.goals.to.significant. roles..that. important. are.is. lack. misunderstandings.project.consulted.and.not.Bureaucracy. help.empowered.issue. their. properly.often.designed. of. causes.take.recognition.fact.and.a. recognition. were.the.develop.plans.change.In..resources.critical.5. Figure.countermeasures.to...in. a. be. resistance analysis of proposed changes.in.deployment.impacts.improvement.aligned.the.in.shown. these.leader.understand. importance.discussion. conflicts. that. to.if.training.Developing.be.Human.resource.help. to.not..a.a.that. that.are.the. This.significant. of..bureaucracy.for.been.aligned.of. mentioned. of.. barrier. managed.developed.are. well. procedures. to.proven.factor.shown.and. organizational.always.is.not.organization.are.but.cause.defined..designed.reason. complicated.Chapter.positively.responsibilities.Recall.or.and..and. Properly.should. be.reinforce.for.training.In.change.7.Empowering. may.objectives.reinforce. responsibilities.and.processes.reduce.their.In.types.employee.was.and.lack.... promoting.barriers.that.5 4.ensure.process. training.is.two.process. process.of. and. rewards..to.project.way.3.assistance..Limited.to.. and.attack.to.effective.to.to.shown.impacts.(HR).fact.in.teams. the. due.be.barrier.with. in.In.this.of.communication.issues. example.if.7.deployment.summary.very.an.the.common. ensure.lower-level.cannot. managers. policies.a.a.them.rewards. organizations.is. slow.will.a...5.and..the.Well-designed. process. place..people. These.discussed.problem.employee. in. (NVA).activities.situation. change.known.and. change. This. As.work.employees. avoids.then.excessively. creating. concepts. systems.required.also.deployment. and. deployment.. Clearly. defined.

these.negative.risk.Other.role.positively.develops.cultural...both.a.people. breakdowns..analysis. periods. identify..for.time.However.type..benefits...activities.separate.ways.will.are.tend.event.or.negatively.As.fully.goal.specifications.data.these.schedule.process.project..cross-references.its..that.Kaizen.or.Building a Business Case for Change  ◾  233 with.may.for.negative.impact.have.associated..of.who.coordinates.never.experts.6.An.set.by.important. impact.cost.opportunities.their..to.an..Additional.minimize.include.project’s.of. a.stakeholder.by. suppliers.different. The.root.improvements. example.the.important.7.planned. to..changes.risk.because.change. infrastructure. As.are.process.In.this.collect.shown.to.financial.stakeholders.customer.new.new.and.impacted.As.resources.process.is. the. conducted.a.and. when.or.. and.improve.include.by.reinforce.a... countermeasures.workforce.to..In.a.team.support.a.negatively.a.occur.the.extended..projects.used. to.are. a.is.typical.facilitator.product.eliminate.of.diverse. with.and.and.an. may.event.other.local.impact.work.environments. situations..a.an. to.would.to.leader.discussed. Kaizen.unrealistically. assumptions.process.or.be.event.technological.factors. the.to.analyze.of.promote.or.attend.improvements.necessary.may.service.provides. factors.evaluate.as.dependent..necessarily.Team.ideas.Scheduling.an.may.that..procedures.Kaizen.has.tested.consensus-based.may.may.improvements.a..and.the.meetings.a.to.having.process.process.who.been.implementation.deployment.countermeasures...or.loss.embracing.is.may. workforce.risks. internal..other.members..the. countermeasures. to.also.unionized.owners.Kaizen..that.cultures.team’s.history.risks.those..but.scheduling. product.for...tend.because.a..machines. deployment.in.contribute.supplier.As. a.readily.impact.economic.a.project’s.. include..the.by.on..process.a.also.process.Kaizen.or.a. their.planning.workforce.work.changes.positive.service’s.to.process.over.event.analyze.a.asked.align.Technological.organizational. basic.Figure.advance.then.risks.is...to. Countermeasures.and.impact.positively.far.a.slow.Kaizen.also.not.a..7.may.not.with.. who.impacts. systems.Customer.consensus-based.identify.the.risk.if.members.proactive.strong.tend..But.will.a.accept.of.demand.impacted. supplier.follow-up. .associated.activities.roles.factor.may.elements.do.this. team.result.gain..impact..customers.analysis.become.may.in.example.include.. different. regulatory.or.activities.and.improvement.materials.improvement.alignment.the.Also..impact.This.. result.team.differentially.Kaizen.so.more.include.execution.and.environment.6.the.external.resources.business.customer.The.key.major.and.may.impact.project.inhibit.change.fulfill.and.team.or.factors. is.risks.causes. organizational.the.on.than.they.of.these. The. should. also.risks. factors.improvement.workforce.positively.. also.that.work.Figure.risks. sponsor.with.people.this... that.been.Kaizen.independently.situation.the.and.identify.not.and.major.countermeasures.of.using.original. infrastructure Analysis An.be..affect.and. relative.team’s.to. identify.These..profit.of.if..a.significantly..negatively.factors.to.infrastructure. These.behavior.once.Kaizen.cultural.leaders.factors.assumptions. they.risk..efforts. analysis.to.

her.a.6.an.have.to.may.focus.in.very.functions.resources.as.countermeasures..a. our.key.or.a..a.that. sustainability.an.a.other.project.so.collection.business.risks.. its.of.a.and.time..the.the.significant. and.customers.managed.on. are.been.. relative.suppliers..the.on.an.6 5.all.goals.team’s..should.of.events.Kaizen.improvement.team.factors.to.data.be.by.a.with.for.targets.event.Finally.deployment. original.analysis.using.their.five.solutions.also.and.they. .time.these. general.has.related.team. of.durations.234  ◾  Lean Six Sigma for the Office Stakeholder Group Cultural Risks Technological Risks Scheduling Risks Customer Risks Supplier Risks Economic Risks Regulatory Risks Countermeasure/ Improvements Positive Impacts Negative Impacts Negative Impacts Cultural Risks Technological Risks Scheduling Risks Customer Risks Supplier Risks Economic Risks Regulatory Risks Mitigation Activities Potential Issues Success Probability (Risk) Figure 7. characterized..as..days.well.or.have.meet.necessary.But.As...gain..short.quality.events.legal. impacting.These.solutions.having.work. impact.The.work.basis.Kaizen.risks.Also.that.enable.technology.a..shown. process.projects. may.depending.is.team’s.or..to.to.. infrastructure analysis.required.to..up-front. project. regarding.well.a.project.to.and.In..benefits.impacts.rapid.to. and.prior.regulatory.cost.analysis.solutions.conditions.consider.example.complexity.on.ensure.are.may.positive.loss.with.of.key.champion.7.Kaizen.the.team.to.recall.may. an. Scheduling process Change Actiities Effective.scheduling. team’s. assumptions.review..perhaps.and. some.as.on.infrastructure.a.three.macroeconomic..situations.solutions.and..that. change.and.recommended.follow-up.assignment.activities.are.easily.or.important.that.Figure.is.organizational.his.example. human.as.negative.of.

duration.toward.Kaizen. that. F .that.7.completed. scheduled.project. longer. Maps 10. New SOPs 23.been.executed.guide.is. a.7.to. are.In.the.presented. Standards 8.a. to. time. Detailed Proc. Follow-up Activities Activity 1 Activity 2 Activity 3 Activity 4 Activity 5 Activity 6 Person Accountable Day 1 Day 2 Day 3 Day 4 Day 5 Day 6 Day 7 Day 8 Day 9 Day 10 Figure 7. are. Customer CTQs 2.the.book. COPQ 11. Mistake Proof 18.useful. improvements.shown.well.throughout. shown.all.communication. a.In.4.Notice.managed.of..on.discussed.a.and.important. Potential Solutions 14. igure.. scheduled.be.form.. Communication The.7..end..these.is. key.activities. version.7.has. activities.to.repeatedly. Validate Improvements 17.few. event.4.as.schedule.context.objectives. Figure..that. be.. achieve.this. as. schedule.those.associated. New Process Map 22. Team Charter 4.be. require. planning.discussion.and.charter.an.1.importance.scheduled.this. Response Plan 21.chart.sequenced. Kaizen.activities.very.that... Standardize operations 24..In. Data Collection 9.of.an. “Should-be” Process 15. is..Kaizen.structured.a.goal.event. and.management. Root Cause Analysis 12. conducting. but.in.goals. Project Plan 7.the.their.that.of.checklist.activities.scheduling. implementation..this. Perform.occur. a.summary. In.In.and.communication.in. follow-up.of. during.Building a Business Case for Change  ◾  235 Project Name: Deliverable Team: Complete (Y/N) Major Activity 1.an.the. Scheduling process changes.just.various.shown.. is..A.according.was.event.. team. High-Level Map 6..days.events.discussions.how. event. activities.because.effective.scoped.normally..current.are. time. Define Problem 3.ensure.summarized.their. . Kaizen.Chapter.the.format. Process Performance 19.with. Control Plan 20.of.Gantt.project.a.this.activity.based.event.are. in. Transfer Control 25.including. activities.short.in.7 6.or. carefully. Vital Few Xs 13.to. to.the.to.on.Improvement.showed.effective..work.duration. had.work.is. of.by..identified.completed.the.emphasis.sequence.defined.Figure. with. Cost/Benefit Analysis 16. Stakeholder Analysis 5.or.time.be.generic.in. occurring.the..team’s.

that.a.8. team’s.an.important.specific.ensure. the.format. stakeholders.activities.at..stakeholder..reward.are..organization.that.to...the.improvements.of.person...methods.consistent. key.designed.listed.is.to. of.project.there..content.controls.the.complicated.in.process. every.its.across.responsible.process.step.local.should.implementation.methodology.1.of. stakeholders.e-mail.time. a.supported.It.world.the.change..is.and.to.there.initiatives.countermeasures. to.key.e-mails.elements. used.individuals. other.selected.sustained. format.discussed.correlated.and.group. Integral.has.is.several.for.be.The.the..will.It.team. should.the.on. have.analysis.and.change. the.Table...change.stakeholder.obtain..owner.there. be.listed. to.straightforward.general. with.because.improvement..next.to.process.probability.7.. correct..associated. case.chapter. that.routine.in.projects.tools.priorities.messages.this.given.concept. include.that.an.elements.the.is.also. well-defined.The. and..simple.be..are.communicated.several.based..on.changing.organizations. Summary Changing.In.and.implementation.In.The.an.In.any. e-mails..be.key.manage.be.example. to.improvements.necessary.methods.recognition.competitive.calls.a.deployed.key.programs.videoconferencing.first.based.be.apparent. improvement. Communication planning. used. countermeasure. business.process. these.by..priorities.own.using.a. for.8 7.been.an.important..activity.The. over.On.of.the.stakeholders.are.also. countermeasures.and.a. should.modern. activities.impact.message.their.the.example.. .competing.their. to.These.and..process.ensures. the.other.been.. set.necessary.will.hand.simple.Figure. These.transition. be.work. sustain.set.communication.the..These.using.within.formats.modified.numerous.telephone. increase.communication.systems.necessary.that.of.can.should.elements.a.formats.is.and.activities.a.to.always.that.process.who.to.that.newsletters. a. key.and.are.addition.As.the.facilitate.process.resources.will.a.are.with.each.organization.pursuing.person..236  ◾  Lean Six Sigma for the Office Stakeholder Group Cultural Risks Technological Risks Scheduling Risks Customer Risks Supplier Risks Economic Risks Regulatory Risks Countermeasure/ Improvements Positive Impacts Negative Impacts Communication Format In-Person Telephone E-mail Other Person Due Date Responsible Figure 7.in.similar.of.7.step.communication.that. time.structured. to. announce.be.messages. proposed.be.the.the. communicate. can.to.As. organizational.and.environment.tools.important.both..organization’s.this.is..than.communicated.important. rather.are.back.its.for.should.project.which. is.interests..

as.also..countermeasures. also.another.a.Managing Agile projects.inhibit.risks..certain. support.project..York.. Tom.Press.. American..Peters.tend.promote. .the.the.Prentice.well.will.. conducted.causes.team.that.quality.necessary.Once...project.differing.Englewood.obtain.Harvard. the.Building a Business Case for Change  ◾  237 because.necessary.their.the.The.. the..may.Hall.and.Corporation.recommended.Moss. John..to.Schuster.York.Also.Finally.and.in.to. should. John..benefits.promote.. factors. then..projects.. Heskett.developed.Vintage..communication.York:.or. New.School.has.of. are. identify..have. Press..cost.the.was.a.NJ:.process. Kotter.activities.and.. should.relative.Entrepreneurship.context.importance. be. activities..scheduling..eliminate.change.stakeholders.. Suggested reading Sanjiv.York:.planned.that. P.of.time.Boston:.W.root.that. James.to.improvements.to..Business.Operational excellence—Using Lean Six Sigma to translate customer value through global supply chains.Simon.breakdown.NY..the.P.Augustine.may. an.Kanter.Leading change. to.process..key.consideration.2008. James.New.The circle of innovation.1996. Rosabeth. L. Free.or.characteristics.The change masters..1983.for.. 1992. analysis.in..improvements.is.managed..important.organizational.stakeholders.process.well.New.Auerbach.Cliffs.be.project’s. infrastructure..inhibit. and.Martin.2005...Press.Kotter.NY..of...key.New.discussed. as.1999..Innovation.views. Corporate culture and performance.and.

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..management.maps.problems.basic.. d .plan. to. countermeasures.an.ISO. by. quality.must.9004.measurement.Chapter 8 implementing Solutions oeriew Once.ISO.requirements.9000. corrective.customer.has.system. range.a. is.requirements.requirements. control.elements.internal. basic.level.ISO.9000. Group. standards.set. actions. demonstrate.to. normal. customer.but.causes.customers.of..every.a.quality. quality.and.supplier. onconforming. this.documented. to. prevent.standards. emonstrates. the.team. design. and.the. requirements. n .that.system..information.system. recognized.standard.a.in.. the. similar.specify.manufacture.are. eliminate.will. (AIAG). control. regulatory. includes.tools.... materials.between.quality. occurring. supplier. the.. and.its. and..continuously.breakdowns..ISO.must. or.9001.control. from.and.a.9001.. a. This.. to.understanding.not. promoted. consistently.road.the.more. process.The.the. system.mutual. basic. related.of.that. The.management.used..within.quality.products.using. standard.many.of. organization’s.of. 239 .and. designed. systems.is.difference. procedures. requirements.also.used.quality. meet.of.consistently.. have.improve. At. Action.quality.for.standards.Although. and.next-higher.is.root.is.basic.level.are.that.is. those. most.can..records.control.there. (ISO). control. Institute. from.an. activities.the. as. Standards.has. Industry.advanced.process.describes.integrated.templates. International.quality..to.AIAG.that.and. customer.to..audits.certify.be. for. can..is.a.between.a. have.suppliers.a. quality. meet..system.identified. systems. such.of.systems.supplier.particular. prevent....only.documents.detailed. ISO. and. that.of.a. Automotive.should.ISO. importance.a. ISO.supplier.that. 9000.9000.a.that.the.organizations. developed. internationally. These.improvement.formal.and.meet.develop.three.It. to. It. them.

and.the.countermeasures.answer.breakdowns. Key Questions Process.noted. effects. the.award.an.control.including.process.. management. teams.mistake-proofing.Lean.that. include.Lean.of.as.control. to. failure.are. tasks.develops.emerge.controls.process.As.operations.solutions.But. standardization..methods.root. resources.want.questions. procedures.tools.then.maturity.tools.its.tools.simplified.differentiation..important.simple.completes.process.methods.and.In..control.true.a. functions. manner.use. Which.an.should.developed.on.modified.of. modifications. and.must.. (FMEA).ensuring.several.usually. criteria.and..methods.major.support.answers.and. causes.team.gained.categories.a. operations.also.organizational. improvement.words..must.overall.many. these.240  ◾  Lean Six Sigma for the Office AIAG.well. elimination.and.usually.process.through.be. services. or.of..eliminated. An.integrated.also.to.be.statistical. eliminate. the. could.characterized. also.and. will. human.or.management.More.reduce..an.activities.consist.Malcolm..been. with.These.application. knowledge. work.necessary.that.the.of.work.example. management.has.measure.control.to.process.for.an. used.one.performance. can. As.employed.to.has.maintenance.is.Malcolm.award.that.automatic.measures. use. and.process.to. .several.of.that. AIAG.quality.remain.reason. deployed.systems.a.root.controls.exits..of.using.organizations. analysis. be.inputs..reinforce.be.measurement.is. important.Baldrige. analysis.control.been.while.process.to. requirements.controls.this.what.monitoring. systems..their. but.be.a.need.. Baldrige.that.the.such. service.themes.as.Typically.of.by. placed.controls.their.be.focus.ask.or.based.As.from...a.are.a. a. In.this.organizational.detailed.and.systems.outputs. Kaizen.(Xs). and.control. plans.control. Once.the.and.are...types.that.strategies.Sigma.we. process.differentiated.Six. methods. following.the..also.standardized.that.Kaizen.several.that.to. useful.countermeasures.the.dashboards. sustain.analysis.that.knowledge. system..control. or.results..auditing.Note.the.systems.been.products. metric.questions.process.and..other.training.planning.quality..Baldrige.are.discussion.process.applied. process. activities.easy.process.leadership.after.there.of. Malcolm.is. tools.it. causes.and. methods....management. ISO. usually.an.It.should.tasks. process..consist. In. question.to.customer.and..these.that.and.to. of..as..The.process..impacting. example.analysis..a..procedures. control.may.methodologies.thorough.other.these.rely.controls.that..system.quality. summary.a. systems.quality.combination.of.of.the.control.a.of..strategic..and.is.the. It.and. would..application.on. team’s.on.Sigma...it.control.Six. such.they. of.controls.process..several. preventive.initiatives.problem.the.will.to. designed...The.example.methods.. are.controlled.also.and.other. may.as.a.team.In.implement.5S.have.as.an.and.these.several....relative. be.audits.different. mode.improvements. an.to.from.or. an.quality.market.when. be.variables.performance. subject.combination.of.in..determines.are.supporting..used. in.the..be. integrated.. in.(Ys).process.to. designed.of. is:. criteria.other.of.as.ensure.based.to.context..within.basic.may.major.our. using.

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4.across. Table.the. monitor.example.statistical.common. Statistical evaluations of process performance can be made for a stable process.variable..cause.is.In.there.variable. have.ten. controls.inputs.be...the.as.how.. 4.process.we.the.if..that.its.the. table 8. variation.tests. Control charts differentiate special from common cause variation.is. .patterns.nonrandom.is.points.unique.as. Control charts promote less frequent process adjustments.chart..users.to.other. and when small changes must be detected within a process.baseline.may.common.addition.types.the.this.control.should. of.baseline.similar.or.. variables.As.an..process.require. The.of.selected. a.to.control. concept.various.being.review.section.control.using. A process variable must exhibit both statistical control and meet customer requirements (these are not the same analysis)..processes.variable. to.determine.In.control.process.data. process.and.around.244  ◾  Lean Six Sigma for the Office Statistical process Controls Statistical.. 9.symmetrical.control.random. A process will operate with less variability if it is in a state of statistical control.are.that.industries.the.only.patterns.of.time.4 Key Concepts of Control Charts 1. 3.being.an.charts.. The variation of a stable process contains random or common cause variation. everal.if.calculated. control.of..several. key.lists.control. cycle.from.charted.on.example. 8. is.based. s . it is not stable.industries.identify. Key.are. 7.the.or.trends.the.variation.different.detect. first.its.will.charted. chart.will.the.Recall.enable.of.show...patterns.apply.types. and it may be easy to eliminate it from a process.sequential.tests.all.statistical.on. 5. 2.a. its.it.customer. and it is difficult to eliminate from a process.used.patterns.some.from. sampling can be applied to a process having common cause variation. key.that. sampling cannot be used to monitor process performance.different.well.nonrandom.patterns.of.. used.Although.process.outputs. Common cause variation is due to many sources.to.this.Also.of.As.variables. the.distribution.that.construct.assumptions.indicate.contain. distribution. are.taken.conducted. charts.process..is.to.and.invoices. that. performance. Special or assignable cause variation is due to one or a few sources. chart. 6.are.a.its.to. key.outliers. when small samples are used to collect process data. process.across..an.to.performance. it is stable.use.initial.should.charts.information.. 10.level.loss. a.8.pattern.are.control.chart.that. It enables the identification and elimination of special cause variation.a. concepts. stable.pattern. Specialized control charts are used to monitor specific conditions such as metric performance over short periods of time.sample.on.was.

of.. short..is.requirements.time.end. the.In.be.charts.the.scale.charts.be. is.skewed.be.to.be. variation. using.is.meet...and.in.variation.difference.required.a.on..variation. monitoring. of.this. evaluation.values.broken..will..period.to. process. control.noted. is.of.a..and.based.of..chart.if.charts.to. s . wasted. to.variation.meet. smaller.measured.could..stable.cycle.time.should. of.pattern. range.internal.a.changes.range.to. include.future.a. X-bar.charts. performance. require.are.easily.special.specialized.make.is. be.in.as.causes.it.process.as.Applicable. as. will.control.mean.this.of. a.of.control.a..of. using.These.process.a.subgroup.that. of. assumed.on.the.not. In.no.or.of.be.and.A.frame.It. It.result.charts.because.and.fully.that. different. the.charts. minimum. time. a.usage.detect. high.eliminate. of.the.Individual-moving.their. chart. of..requirements.very.capability. pattern..into..a.As.collect. not. value. original. being.. the.process.process...is.value.distribution.variable. enables.a. process.to.individual-moving. ituations. individual-moving.and.may.process. over.and.to.Specialized.stable.small.time.In..the..that. The.in.of.adjustments.are. process. different. X-bar.control.used. maximum. control.X-bar..of.is.ranges.the.and.manual.reference..that.there. be.be.applications.process. An.control. satisfied. differentiates.situations.eliminated..customer.specific.This.would. use.commonly.variation.slightly.charts.small.variation.assume. if.control.process. In..state.process.under.be.averages.not..many. variation. charts.to.samples.to.monitor..distribution.control.wide.control.can.between.there.chart.These. noted.variable.sources. data.are.most. resources.because.charts. latter.process.the.monitor.range. sources.exhibit.historical.could. the.intervals. Depending.range.differ. requirements.discussed. customers. of.is.continuous.assignable.the.control.In.data.its. a. are.will.from. calculated.variation.several.then.control. a.sense. special.on.are.charts.also.of. interpretation.nonrandom.that.types. the. range.well.charts.the.performance..not. distribution.the. charts.special. because. formats.many.that.patterns.due.a.monitor. .each.monitor.statistical..assignable. the.control.time.readings.be. the.5. between.adjustments.cause.. range. made. continuous.difficult.concept.very. control.should.a.the..process.key.but. and.similar. There.will. based. the.used. and.Also.pattern. probability..statistical.then.meet. the.control.then..that.process. enables..discuss.control.and.capable.similar.their.Table.made. may. This. subgroup. and..8. of.a.which.taken.chapter.several. periods.. while. of. individual..decreased. in.a.either..specifications.a. c-charts. the. chart.makes. range.The.or. an. statistically.However...should...chart. charts. As.cycle.specification..range.specific. common. assumed.of.samples.control.Implementing Solutions  ◾  245 its.common. former. requirements..summary.of.to.control.most.detecting.be..is.present.for.obvious. be.eliminate.are.meeting..a.due.be.second. summary.from.customer.customer. p-charts.concept.control. and.could. time. example.in.In. pattern.. is..different.at.contrast.customer.we. that. r-charts.identified.. situation.but. cause.variable. words..can.and.within.its..variation.that.will.common.symmetrical.which.to.maintain.that. advantage.smaller.individually. there.other.patterns.subgrouped.and.can.would.a. internal.ninth.be. fewer.key. distributions.charted.of. cycle.it.values. its. suggested. minus.chapter. be. situation.lists..same.or. that.cause.X-bar. are.to.used..conditions. and.

5 X-Bar and Range Charts Continuous Cycle time. i. costs. costs. Poisson Sample Size 4–6 observations per subgroup and 20–25 subgroups in the initial baseline sample. i. Convenient sampling unit that is constant from one sample to another.. hours. incident rates. percentage defective invoices. percentage days late.e. Number of units failing a standard. P-charts are constructed using subgroups of equal or unequal size. Normal 25 to 125 observations in total sample with subgroup size=1. Number of defects per sampling unit. incident rates. np-charts are used in situations where subgroup sizes do not vary. etc.table 8. etc. Assumed Distribution Normal . number of errors per invoice.e. 50 or more observations per subgroup. Binomial Percentage or Proportion Counts P-Chart/NP-Chart C-Chart/U-Chart Control Chart Control oeriew Control Chart Individual Moving Range Charts Data Format Continuous 246  ◾  Lean Six Sigma for the Office Basic Application in Office Environments Cycle time. number of accidents per building.. etc. U-charts are used in situations where the size of the subgroup size varies. etc. hours.

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7 A generic quality control plan.Process Name: Team: Requirements Measurement Method Automated timestamp Daily call summary report Testing/ Evaluation Method Call Center Procedure 35/ Revision 4 Work Procedure Reference Customer: Office Location: Date: Revision: Process Step/ Work Key Outputs Key Inputs Operation (X) (Y) Lower Target 5 seconds 15 seconds Upper NA FMEA Reference Call Center Incoming Calls Revision 2 260  ◾  Lean Six Sigma for the Office Customer calls into call center Time to answer call NA Figure 8. .

management.to.7 present Findings to organization a.the.presentation.be.or.advance.use.always.problem.other.analysis.has.their.will.tools.presentation. organizational.stakeholder. activities.process.impact.process.presentation.analysis.good.a..the.standardized..interested..specific.how.should.to.be.process.this.easy.findings.useful.how. team.In.any.some. c.modifications. by. analysis.to.specify. that.a..and.show.complete.and.team.basic.linked. the.of.this.of.improvements. and.then. countermeasures.the. advance. project. process.changes.their.required. be.data.your.of.management.there..and.management. Present findings to management in an easy-to-understand presentation format using clear presentation roles and a standardized template. structured.schedule.also.It.team’s.problem. what.idea.corresponding.about.and.It.its.complicated.standardized.take. new.types.for.the.a.cause.format. root.be.during.and.collection.team.in.presentation. changes.in.cost.stakeholders.benefits.more. to.1..will.templates.process.implemented.In.in.8. their..related.to.to.and.also.including.should.the.it. cause. in.manner.understand.Kaizen.team’s. implemented..work.to.ensure.communicate.that. presentation.improvements.should.presenting. of.its.to.activities.adequately. be. help.team’s. on.have. improvement.own.work. the.concept..book..collection.. Follow-up Actiities Although.show.countermeasures.local.to.should.from.every. addition.it.. well.practice.obtain.. and. provide.many.will..process.in.organization.describe.a.changes.event.questions. information. as.and.and.and.will.the. how.countermeasure.A.with.extended.A. should. must. need.in.in.way.. are.most.types.is. naturally.an.analysis.information.with..Kaizen.should.management.eliminate.well.lessons. its.as. Finally.to.process. members.improvements. The.team.is.owner.are.its.team.discussed.required. Develop ideas to leverage improvement ideas.be.advance...champion.is.also.8.activities.need. use. team’s.improvements. the.a.their.to.Kaizen..management. Develop a presentation of all analyses and implementation activities.and.. should.a.to.and.the.success.its. to.is.people.supporting.presentation..prepare. impact.countermeasures. words.the. a.In.relevant.addition.who.addition. original. changes.the.also.to.and.linear. well.should.The.is.from.activities..the..to. as.learned.presentation.activities.team.data.documentation. In. coherent.the.the.its..statement.include.presentation. in.learning.as.management. gathered.be. Similar to Step 3 of Figure 4.require.may.statement. It.discuss.always. root.Figure. information.key.the. the.discussed.The.a.formats.business.as.supported. d.Implementing Solutions  ◾  261 table 8.the.future.stakeholders.normally.although. .important.of.to..them.support. as.the.shows.Although. Develop lessons learned (what did and did not work).Every. determine. from.. should.owner. b.project’s.team’s.

8 7 5.262  ◾  Lean Six Sigma for the Office Pareto Chart of Causes for High Inventory Investment e el d or de r e ul ch an Root Cause Analysis: Level 1.2 100.6 80.26.6 100.8 82.6 67.8 Communicating the proposed changes to management.7 94.0 94.6 16 14.1 9 6.5 88.6 10 7. 2. Percent .4 13 12.27 ge iv Ca nc Sc he d La te l de er ie s La rg o el ts iz e i ng M iss m at er ia ls O th er 180 160 140 120 100 80 60 40 20 0 Root Causes Count Major Impact = Demand Variation Major Impact = Lead-Time Variation C an l ce ed Sc or de r ch d he e ul an ge t La e ed liv er ie s lo La e rg ts iz e m M is sin g at er ia ls O th er Root Causes Large lot size Canceled order Missing materials Schedule change Other Late deliveries 140 120 100 Count Pareto Chart of Root Causes for Canceled Order 100 80 60 40 20 0 Percent Team Presentation Summary Panel 1 • What are the new process changes? Panel 2 • Who are the stakeholders and what do they have to do to support the changes? 80 60 40 20 0 er y e iss d s le du a In cc u t ra du le U ow n Root Causes La te l de iv e ch es e ch n nk Panel 3 Panel 4 M Count Percent Cum % 108 80. 5.0 • How will • Will there be these changes future process be supported changes? by the team? 120 100 80 Count Pareto Chart of Root Causes for Late Delivery 100 80 60 40 20 ed c In or c re e Ca rr ie ue U 60 40 20 0 n 0 Root Causes st om er no tn ifi ot ti o nv ic ss ri nk w no Cu Count Percent Cum % 73 67.4 6 5. and 5.25.0 Figure 8. and 3 Figure 5.

.process. because. it.as.type.the. etric. process.celebrating.by.at.levels.follow-up.listed.Figure.make.is.highly.a. the.Ideally.to..an.the. their.of.cycle.information.activities.degradation.can. b.root.three. a. m .enable.eliminate.and. additional.that.completed.would. onitor.into.These.but..dashboard.owner. of.in.in.a.created. a.performance. time.responsible.causes. complete. organization. higher-level.cycle.immediately.organization’s.can.the.developed.includes.concept.work. newly.to. identify. are.and.that.see.to.team.would.root..very..users.1 period.activities.A.dashboards.occurring..them.Table.control.of.are.for. to.to.the.As.drill. m .operations.8.These.it. performance. Similar to Step 4 of Figure 4.caused.a.a.of. that. down.plan. performance.dashboards.is.the.countermeasures.This. its.be. using.success.. these. a.a.each.discussion.of.metric.basic.components.The.may...integrated.a.The. total. corrective.8.able.useful. take..be. if.breakdowns.activities.time.result. few.is.using.be.activities. if.for.the.our.simple. F .people.an. improved. from..1.broken.be.work.completion.shown. team.basic. those.8.final.team’s. close. Creating metric dashboards Metric.enable..to.not.must.task. degrades.time.the. reporting.ideally.Implementing Solutions  ◾  263 table 8. status.unfinished. degrade. Communicate the Kaizen event results.addition.its.similar.10.step. many.in.Step.to.time.drill.part.. useful. Summary Once.time.will.Kaizen. need.completion..the.. actions.can.event..the.an. will.they.and.within. appropriate. c.first.final.such.improvements.8. event.process.analysis.root. Complete all prioritized improvements not completed during Kaizen event..or. feature.various. cycle.its.there..event.dashboard. to.4.steps.4.In.also.into.a... provides..metric.dates.a..the.metric. begins.have.of. igure.Kaizen.time. out.has.there.example. Celebrate with team.the.be.documented..related.activities.9..include.8 improement eent Follow-up Actiities a.. Kaizen.Kaizen.major. versions.which. of.and. process.in.tasks.lower.performance.of. .8.further.to.within.These..required.Figure.Kaizen. of. actions.in.to..the.process.down.and.this.prevent. the.of.should.findings.larger.cause.follow-up.be. There. and.several.a.process. to.a.are..follow-up.format. event.level.graphical.activities.is.components.as.this.be.the.communicating.to. problem.the.are.in.8.the.their.to.example. a. to.to.divided.into.identified.this.chapter.to.improvement.10. an.As. to.information. a.see.complete. enables. easy-to-understand.As..cycle.for.shown. and.causes.listing..Table.user.documented. format. be.from.Figure.8.

discussed.levels.several.final..countermeasures.process.performance.types.concepts.will.require.. of.These.their.degrades.organization..included.9 Follow-up actiity list.discussion. statistical.necessary.was.their.process.Metric..plans.reaction.and.(SPC).important.previous.are.of.this.improvement.process.dashboards.characteristics..discussed.obtain. process.important.control.and.others.to.is. communicate.. current.to.A.when.a..combination.system.effects.performance..of.for.quality.control. methods.a.were.to.in.mode.chapter.quality.resources.measurement.as..control.activated.and. Floor Area Rework % Inventory Capacity Scrap % .Effective.this.Another..(FMEA).chapter.findings.eliminate.root.used. usually.strategies.team’s.as.the.this.future.target.tools.in.In.presented.presentation.control.both.our.breakdowns.control.plan.Although..to.an.monitor.in.by.topic.causes.failure.chapters.several..were.264  ◾  Lean Six Sigma for the Office Action Item Listing (Follow-up Activities) Kaizen Event Number: Department: Process: Workflow: Operation Number: Facilitator: Date: Operator: Takt Time: Required Production: Improvements Completion Date Production Rate Downtime % Setup Time Identified Process Breakdown Person Responsible Comments: Figure 8.control. well.new.analysis. normal..projects.for.activities.the.project.and.that.process.

00 Total Cost by Process Step Total Cost ($) Top (3) Improvement Goals: Total Cost Comments: 1 3 5 7 9 11 13 15 17 19 Process Step Number Product Group (Invoice Type) Total Operating Processing Time Inspection Time Transport Time Operating Cost Value Adding? Storage Time Yield (RTY) Setup Time Delay Time Total Time Process Step 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Total Sales Price Total Cost Gross Margin % Comments A 1 1 1 1 1 1 1 1 1 1 1 1 0 1 1 0 1 1 0 1 17 $32.00 $8.2 2.6 26.York:.9 2.mentioned.2 7..1 4.5 1.2 75.9 1.0 3.50 $4.0 3..9 19.1 4.70 $4.8 1.8 10% 1.6 0.3 6.2 0.3 17.4 131.the.8 4.8 0.2 5% 0.80 30% D 1 1 0 0 1 1 1 1 0 1 0 1 1 1 1 1 1 1 1 15 $24.0 Cycle Time (Minutes) Cycle Time Components 100% 98% Delay Time Processing Time Inspection Time Transport Time Storage Time Yield Percentage Yield (RTY) by Process Step 12.00 15% C 1 0 1 0 1 1 1 0 1 1 1 0 0 1 0 1 1 1 1 1 14 $30.1 0.to.25 $3.5 $ 91.status.60 $1.5 36.8 10.4 5.dashboards.1 0.to.9 0.3 6.0 2.1 3.4 3.8 1.8 1.74 $5.30 $1.4 5.work.should.00 $20.6 0. discussion.7 10.7 2.6 7.Bothe.0 0.R.6 7.2 20.8 1.New.and.8 5.77 $4.4 99% 97% 95% 99% 97% 99% 98% 95% 93% 98% 99% 96% 97% 99% 94% 99% 97% 98% 92% 94% $27.8 1.4 0.8 1.8 1.8 1.enable.2 4.15 $0.66 $2.5 1.8 1.was.0 3.6 13.8 3.3 3.4 0.0 3.8 1.5 12.9 5.96 25% Total Cost C omments T arget to E liminate 3 3 3 2 4 4 3 3 3 4 2 3 2 3 3 3 3 4 2 4 61 1.8 1.monitor.48 $1.0 30.35 $1.8 1..7 0.7 7.00 $4.0 1.that.6 3.6 21.appropriate.corrective.1 14.3 11.0 4.0 14.27 Y es No No Y es No No No No No No Y es No Y es Y es No No Y es Y es No Y es 15 T arget to E liminate T arget to E liminate T arget to E liminate T arget to E liminate 1.team.5 1.4 1.Measuring process capability.take. .8 2.03 % T otal Figure 8.0 3.4 13.8 1.0 4.3 1.0 18.1 18.3 18.00 $6.1).25 $5.4 2.8 33.00 $12.higher-level.4 4.6 1.process.4 2.40 $10.metrics.4 $4.2 1.0 10.performance.6 6.3 0.9 0.0 7.a.8 0.5 1.10 Creating metric dashboards (similar to Figure 5.7 0.9 1.7 5.4 0.5 3.9 1.local.72 $27.metric.9 2.2 4.2 1..2 0.1997.0 6.2 4.McGraw-Hill.8 4.1 37.6 0.2 2.3 0.7 0.Implementing Solutions  ◾  265 16.6 100 % 15.5 1.00 $2.9 4.08 $0.2 75.8 1.0 1.00 $10.7 0.7 1.8 1.6 2.8 5.8 1.50 $5.8 1.5 0.8 1..8 1.8 2.6 2.of.5 12.0 3.6 2. Suggested reading Davis.2 9.9 0.4 4.actions.8 0.6 2.0 Setup Time 96% 94% 92% 90% 1 3 5 7 9 11 13 15 Process Step Number 17 19 88% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Process Step Number Yield (RTY) Top (3) Issues: $14.their.8 1.0 2.4 3.9 1.2 20% 3.60 1.6 6.8 1.05 $4.27 20% B 0 1 1 1 1 1 0 1 1 1 0 1 1 0 1 1 0 1 1 1 15 $23.0 0.40 $13.6 0.95 $19.4 2.3 6.maintain.70 $8.2 0.8 36 20% 3.6 16.1 1.0 2.9 27.4 2.4 2.00 $0.6 35% 5.it.8 1.5 1.94 $23.55 $7.owner.6 7.5 1.0 7.4 1. and.6 13.0 8.7 374.6 3.

and automating processes.Auerbach.Martin. Paul. Richard....Publishers.and.1993.Morgan....McGraw-Hill.Kaufman. J. Leavenworth. redesigning.New..Operational excellence—Using Lean Six Sigma to translate customer value through global supply chains.York:.San.York:.W.Juran.. Grant. L.McGraw-Hill.&. James.C.Frank.Montgomery..Business process change—A manager’s guide to improving. John.1997. ed. 6th...2003..... and. Statistical quality control.York:. Douglas.M.266  ◾  Lean Six Sigma for the Office Eugene.Quality planning and analysis.. 1988.2007..Wiley.York:...Sons....M. S.Francisco:. New..Gryna.Harmon. ..ed.3rd.New.New.Introduction to statistical quality control.

to.simultaneously.disadvantage.new. activities.Lean..lower.through.strategy.increase.involved.be.analysis.subject.a.actively. a.process.be. events.much.argument.process.difficult. The.improvement.Kaizen.deployment’s.levels.Chapter 9 reinforcing new Behaiors and organizational Change oeriew An.change.process.However.At. When.if.create.are.to.an.the.two.the. developed.organization.only.first.this.is.in.for.elements.will.an.with.deployed.isolated.The..aligned. where.without.organizational.then.subsequent.theme.other.second.specific.has. properly..process.dramatically. compelling.level.or.environment.when.of..that.the.its.the.major...and.initiatives.integrated.events.this.an.to.an. Sigma.activities.and.of..behaviors.isolated.an.local.be.are.are.level.However. the. potential.be.there.it.simultaneously.of.should.sustain.projects.integral.behaviors. deployed.work.an...being..help.is.discussed.with.that.propagate.employees..organizational.team.must.reinforcing.and.As.operational. approach..owner.new.At.this. organization.most.at.many.organizational. resistance. 267 .changes.are.are.level. such.its.at.Kaizen.organization. have.and.change.and.through.logical.within.is.part..support. and. Six.an.and.book. as. Lean.of.change.a.several.productivity.improvements.implemented.result.bottom-up.tremendous.a.organization’s.because..and.for.can.engaged.been.projects.reinforcing.organization..will. Kaizen.

268  ◾  Lean Six Sigma for the Office

the.focus.should.be.on.the.effective.deployment.of.teams.and.execution.of.improvement. projects. where. process. changes. are. specific. to. a. local. work. team.. Effective. organizational.change.depends.on.this.tactical.project.alignment.and.execution. In. earlier. chapters,. we. discussed. the. strategic. alignment. and. efficient. allocation.of.organizational.resources.to.execute.an.initiative’s.projects..Effective.project. execution.increases.an.organization’s.core.competency.in.the.areas.improved.by.a. project’s.solutions..In.other.words,.an.organization.learns.as.new.process.knowledge. is.created. through. the.collection. and.analysis.of.data,. as.well. as.the.development.of.solutions.to.chronic.process.problems..Because.initiatives.are.important. in. increasing. organizational. productivity,. their. effectiveness. should. be. continuously.measured.relative.to.their.financial.and.operational.benefits..One.measure.of. an.initiative’s.effectiveness.is.the.percentage.of.people.within.an.organization.who. are.using.its.tools.and.methods.to.make.process.improvements.to.increase.productivity.. In. this. context,. effectiveness. can. be. measured. by. project. benefits. that. are. correlated.with.employee.surveys.and.training.activities..It.is.also.important,.in.the. early.stages.of.an.initiative,.that.its.invested.resources.be.significantly.higher.than. its.benefits..Common.statistics.or.metrics.that.can.be.used.to.measure.the.effectiveness. of. an. initiative. include. the. total. projects. deployed,. the. average. cost. savings. per.project,.the.total.people.deployed,.the.total.investment.cost,.the.average.cost. s . avings.per.person,.the.total.cycle.time.to.initiate.and.close.a.project,.and.the.net. promoter.scores.(NPSs).for.the.key.stakeholders.who.are.impacted.by.an.initiative.. An.organization.can.also.use.other.measurements.to.calculate.its.initiative’s.success.. Recall.that.the.NPS.statistic.discussed.in.Chapter.7.and.shown.in.Figure.7.3.was.a. measure.of.key.stakeholder.satisfaction..Key.stakeholder.satisfaction.is.important. in. obtaining. organizational. resources. and. cooperation. for. an. initiative’s. project. activities..These.measurements.of.effectiveness.are.important.to.sustain.and.expand. an. initiative.. Communication. is. also. an. integral. success. factor.. These. combined. measurements.are.also.important.to.evaluate.the.effectiveness.of.Kaizen.events.and,. as.a.justification,.to.secure.resources.for.future.Kaizen.events. In. earlier. chapters,. we. also. discussed. the. fact. that. organizational. change. is. enhanced.when.the.correct.tools.and.methods.are.used.to.deploy.an.initiative..In. other.words,.tools.should.be.matched.to.business.opportunities..In.this.context,. some.projects.should.be.deployed.as.Lean,.Six.Sigma,.Kaizen,.capital.expenditure,. or.other.types..This.concept.was.shown.in.Figure.2.4..An.organizational.infrastructure.should.also.be.created.to.support.different.types.of.reinforcing.initiatives..As.an. example,.to.the.extent.that.an.organization’s.senior.management.is.engaged.in.an. initiative’s.deployment.through.an.executive.steering.committee,.its.success.probability.will.be.higher.than.if.it.were.deployed.in.a.bottom-up.or.isolated.manner..This. is.because.members.of.an.executive.steering.committee.can.help.select.and.align. projects.and.also.help.implement.the.necessary.organizational.changes..Change.is. also.facilitated.by.organizational.training,.in.advance.of.an.initiative’s.deployment,. based.on.employees’.anticipated.roles.and.responsibilities..Also,.at.a.project.execution. level,. the. people. who. will. be. impacted. by. a. project’s. improvements. should.

Reinforcing New Behaviors and Organizational Change  ◾  269

be.integrated.into.Kaizen.or.other.process.improvement.teams..Finally,.change.is. enhanced. when. project. metrics. and. business. benefits. are. tracked. and. measured. against.key.performance.targets.to.show.success.

process Change across global Supply Chains
Organizational.change.is.particularly.difficult.within.a.global.supply.chain.because. of.the.large.distances.and.cultural.differences.across.its.various.locations..In.my. recent. book. entitled. Operational Excellence—Using Lean Six Sigma to Translate Customer Value through Global Supply Chains,.I.discussed.several.success.factors.that. facilitated.organizational.change.within.a.global.supply.chain.environment..One. enabling.characteristic.was.collaboration.through.interorganizational.projects,.joint. ventures,. and. partnerships.. These. collaborative. activities. tend. to. improve. supply. chain.communication.and.build.interpersonal.relationships.among.its.participants.. Another. enabling. characteristic. is. the. development. of. high-performance. teams. that. reflect. the. demographics. of. supplier. and. customer. organizations.. Diversity. facilitates.organizational.change.by.improving.group.dynamics.in.a.multicultural. environment..Multicultural.work.environments.also.improve.the.ability.of.an.organization.to.consider.and.adopt.new.ideas. The.design.of.a.supply.chain’s.products.and.services.can.also.accelerate.or.inhibit. change..In.these.leading-edge.systems,.operational.simplification.and.standardization.are.enhanced.through.deployment.of.simple.product.and.service.designs.and. global.operational.standards.that.meet.customer.requirements,.but.are.also.flexible. and.easy.to.change.over.time..People.are.more.apt.to.improve.and.change.a.process.if.the.time.and.effort.to.make.changes.is.low..This.is.possible.through.design. simplification. and. standardization.. As. another. example,. enhanced. technology,. elimination.of.intermediaries.within.a.process,.and.similar.improvements.reduce. operational.cycle.times.and.improve.quality..These.increase.the.flow.of.materials. and.information.through.a.system.and.enable.a.global.supply.chain.to.more.easily. match.capacity.to.demand. In.his.book.entitled.Leading Change,.John.P..Kotter.discussed.several.successful. characteristics. that. will. tend. to. reinforce. new. organizational. behaviors.. Two. critical.success.characteristics.discussed.by.Kotter.were.empowerment.of.teams.and. the.execution.of.short-term.projects.that.provide.business.benefits..Kaizen.events. have. these. characteristics.. But. from. an. organizational. change. perspective,. more. is.required.to.sustain.improvement.activities.over.time..These.concepts.have.been. the.central.focus.of.this.book.and.are.summarized.in.Figure.9.1.using.a.sequence. of.activities.that.build.on.each.other.and.are.continually.improved.as.lessons.are. learned.and.deployment.activities.mature.from.one.generation.to.another..As.an. example,. an. organization’s. steering. committee. and. deployment. leaders. translate.an.organization’s.strategic.goals.and.objectives.into.an.initiative’s.projects.by. identifying. financial. and. operational. performance. gaps.. In. turn,. the. closure. of.

270  ◾  Lean Six Sigma for the Office

1. Strategic Financial and Operational Goals 2. Initiative High-Level Objectives Generation 1 3. Initiative Toolset

9. Infrastructure

8. Rewards and Recognition Generation 3

4. Projects

Generation 2

7. Project Transition

5. Improvement Teams

6. Operational Metrics

Figure 9.1

reinforcing new behaiors.

p . erformance.gaps.requires.the.use.of.unique.tools.and.methods.that.are.associated. with.an.initiative..It.is.at.this.point.when.people.may.become.confused.if.an.initiative.is.being.poorly.executed.by.an.organization..A.complicating.problem.may.also. arise.if.an.organization.thinks.it.is.easier.to.select.just.one.initiative.and.then.apply. it.to.several.problem.areas.where.its.tools.and.methods.fit.poorly..As.an.example,. if.a.root.cause.analysis.is.not.expected.to.be.data.intensive,.then.Lean.methods,. and.Kaizen.events.in.particular,.may.be.the.most.efficient.use.of.an.organization’s. resources.to.eliminate.the.process.problem..On.the.other.hand,.if.a.problem’s.root. cause. analysis. is. very. data. intensive,. then. perhaps. Six. Sigma. tools. and. methods. would.be.more.useful..It.should.be.noted.that.even.within.a.Lean.initiative.there. are. numerous. subspecialties,. such. as. setup. methods,. preventive. maintenance. programs,.ergonomic.applications,.and.several.other.stand-alone.initiatives..These. may.have.a.higher.priority.at.various.times.depending.on.business.requirements.. Once.a.performance.gap.analysis.has.been.completed,.then.actionable.project.charters.are.created.and.improvement.teams.can.be.deployed.to.execute.them..Then. as.projects.are.executed.over.time,.an.organization’s.operational.competency.and. the.value-adding.content.of.its.processes.will.increase..Competency.enhancement.

Reinforcing New Behaviors and Organizational Change  ◾  271

Initiative A
Communication Empowerment

Initiative i-1 Initiative i

Communication

Empowerment

Initiative i-1 Initiative i

Figure 9.2

Competency migration.

occurs.when.an.organization.matches.its.product.and.service.designs.and.its.operational.performance.to.its.customer.needs.and.requirements..At.this.point,.process. change.becomes.a.reinforcing.attribute.that.can.change.an.organization’s.culture.. This.is.particularly.true.when.an.organization’s.reward.and.recognition.systems.as. well.as.its.infrastructure.are.modified.to.support.process.change. Figure.9.2. suggests. that. initiative. competency. migrates. through. an. effective. alignment. of. projects,. the. correct. types. of. communication,. team. empowerment,. training.in.relevant.tools.and.methods,.and.the.creation.of.reward.and.recognition. systems. that. promote. organizational. change. activities.. Project. alignment. was. d . iscussed.in.Chapters.1.and.2..As.a.result,.we.will.focus.our.discussion.on.several.important.communication.elements.and.then.on.the.creation.of.rewards.and. recognition.systems.

Tool Training

Alignment

Initiative B . . .

Rewards & Recognition Systems

Initiative A

Alignment

Initiative B . . .

Rewards & Recognition Systems

Tool Training

272  ◾  Lean Six Sigma for the Office

Communication. to. key. stakeholders. is. particularly. important. to. accelerate. organizational.change.across.the.larger.organization..It.was.previously.mentioned. that. communication. is. a. complex. process. in. which. different. communication. channels. must. be. used. to. match. the. message. with. its. intended. audience.. These. channels. include. messages. from. an. organization’s. senior. management,. e-mails,. newsletters,.brochures,.and.advertising,.as.well.as.the.day-to-day.reinforcement.by. key.stakeholders..In.this.context,.all.communicated.messages.should.describe.the. necessity.and.advantages.of.process.changes.as.they.positively.impact.customers,. employees,.and.suppliers..However,.communication.messages.must.be.simple,.clear,. and.consistent;.otherwise,.stakeholders.may.become.confused..It.is.also.important. to.match.the.correct.communication.format.to.the.information.being.conveyed.to. the.larger.organization..As.an.example,.routine.and.simple.messages.can.be.communicated.informally.and.impersonally.using.e-mail,.but.complicated.messages.are. best.communicated.in.person. Rewards. and. recognition. systems. are. another. important. area. that. is. used. to. support.an.organization’s.goals.and.objectives..As.an.example,.rewarding.people. who. oppose. improvement. projects. or. not. rewarding. participants. of. successful. improvement.projects.will.guarantee.that.an.initiative.will.fade.away..These.situations.occur.when.improvement.activities.are.isolated.and.not.aligned.with.an.organization’s.goals.and.objectives..Another.mistake.is.delegating.the.deployment.of.an. important.initiative.to.lower-level.employees.rather.than.senior.managers..This.will. tend.to.send.a.message.that.these.improvement.activities.are.not.important..This. situation.will.also.eventually.result.in.a.nonalignment.of.projects.with.degeneration.of.business.benefits.and.will.place.an.organization.in.a.position.in.which.the. original.opponents.of.an.initiative’s.deployment.will.be.able.to.point.to.its.failures. as.proof.that.the.original.deployment.concept.was.wrong..Organizational.cultures. having.these.behaviors.will.invariably.exhibit.poor.project.execution.and.numerous. process.breakdowns..The.correct.way.to.modify.a.rewards.and.recognition.system. is.through.a.human.relations.(HR).department.with.the.guidance.of.senior.management..It.is.a.complicated.process.that.requires.a.strong.commitment.from.an. organization’s.leadership. An. organization. must. also. simultaneously. prioritize. and. allocate. its. scarce. resources. across. several. initiatives.. This. requires. that. each. initiative. be. evaluated. against.its.productivity.opportunities..Some.initiatives.will.be.more.important.at. any.given.time.to.an.organization.than.others..Also,.prioritization.will.change.over. time..As.an.example,.Lean.and.Six.Sigma.initiatives.receive.a.large.amount.of.organizational. support. when. they. are. first. deployed. within. an. organization.. As. they. mature,.organizational.support.levels.off.as.their.investment.is.matched.to.benefits. or.productivity.opportunities..People.often.make.a.mistake.in.thinking.that.prior. initiatives.should.not.be.supported.after.their.tools,.methods,.and.concepts.have. been.integrated.into.an.organization’s.processes..In.summary,.an.initiative.should. be.properly.supported.and.communicated.by.its.management.to.the.extent.that.it.is. important.to.an.organization.

Reinforcing New Behaviors and Organizational Change  ◾  273

Mail Room

Sales

Packaging

Receiving

Quality Assurance

Trea Treasurer

Shipping

Manufacturing

Purchasing

Figure 9.3

Sharing knowledge across the world.

An. organization. should. also. fully. validate. a. model. prior. to. deploying. it. to. i .nternational. locations.. In. other. words,. an. organization. should. pilot. or. test. its. deployment. with. internal. and. easily. accessible. process. workflows. prior. to. internationally.expanding.an.initiative.across.its.other.locations..This.concept.is.captured. in.Figure.9.3..This.is.because.an.initiative.requires.that.modifications.be.made.after. its.introduction..Modifications.are.difficult.when.made.in.one.language.and.at.few. locations,. and. having. to. make. them. across. several. countries. makes. the. process. even. more. difficult.. It. is. also. important. to. recognize. that. deployments. across. a. global.supply.chain.encounter.significant.cultural.and.language.differences.from. one. country. to. another.. As. a. result,. communication. must. be. carefully. designed. to. meet. its. intended. objectives.. Also,. organizational. hierarchies. may. be. more. or. less. structured. depending. on. the. country. and. its. local. culture.. Organizational. goals.and.objectives.may.also.differ.from.one.country.to.another..This.includes.its. rewards.and.recognition.systems..Communications.describing.Kaizen.events.must. also.be.carefully.crafted,.if.the.audience.is.not.local,.to.ensure.their.full.meaning.

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International Division

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274  ◾  Lean Six Sigma for the Office

table 9.1 transferring Control
1. What are the business benefits of the team’s improvements? 2. Has the team demonstrated a strong root cause analysis with countermeasures? 3. Has a control plan been created to ensure the countermeasures will be sustained over time? 4. What work is left to be done? 5. Have the local process owner and local work team been trained to use the new process? 6. Have all process work and inspection instructions been updated?

is.translated.intact.for.the.diverse.locations.in.which.the.workflows.reside..As.an. example,. the. various. work. tasks. of. an. invoicing. process. may. be. scattered. across. several.countries..In.these.systems,.improvements.within.these.process.workflows. must.be.carefully.managed.and.communicated.to.all.participants.of.the.workflow. wherever.they.may.reside,.regardless.of.their.function. Transferring.control.of.a.Kaizen.team’s.process.improvements.is.an.important. first. step. to. changing. an. organization.. In. this. context,. John. P.. Kotter. considers. short-term.wins,.through.project.execution,.to.be.one.of.the.eight.important.factors. reinforcing.cultural.change..As.a.result,.we.will.complete.our.discussion.of.organizational.change.with.a.review.of.the.questions.listed.in.Table.9.1..The.first.critical. question.is.“What.are.the.business.benefits.of.the.team’s.improvements?”.At.this. stage.of.the.Kaizen.event.a.team.should.have.detailed.data.collection,.analysis,.and. presentation.material.to.support.the.business.improvements.it.has.created.for.the. organization..In.this.context.a.team.should.have.demonstrated.a.strong.root.cause. analysis.with.countermeasures.and.incorporated.their.improvements.into.a.quality. control.plan.to.ensure.the.countermeasures.will.be.sustained.over.time..Additional. considerations. for. the. transference. of. process. control. are. identifying. how. the. follow-up. activities,. which. could. not. be. completed. by. the. Kaizen. team,. will. be. completed.in.the.near.future..Finally,.the.Kaizen.team.should.also.have.trained.the. process.owner.and.local.work.team.to.use.the.new.improved.tools.and.methods.to. control.their.process..These.include.an.effective.alignment.of.projects,.the.use.of.the. correct.types.of.communication.formats,.team.empowerment,.training.in.relevant. tools.and.methods,.and.the.creation.of.reward.and.recognition.systems..Another. success.characteristic.that.was.previously.discussed.is.communication.to.key.stakeholders.throughout.a.deployment.

Summary
Change.will.be.supported.by.an.organization.only.under.circumstances.in.which. the.argument.for.it.is.logical.and.compelling.and.employees.are.actively.engaged.

York:.has. change..and.. operations. in.W.is..supply.are.Boston:. was.small.resistance.most.are. preceding.factors. improve.have..New.Kanter. Business.been...1983. of.projects. Harvard. School.between.2007.. been. Kaizen.School.. change. These. Lean. Free. initiatives. increases.large. events.rapid. mentioned.productivity. when.1992. Thomas.Auerbach... global. factors.there.Press.activities.practical.well.P. activities..this. differences. organizational.I. several..through.. are.distances.Kaizen.Harvard. 1996. . their.success. an.L.The change masters—Innovation and entrepreneurship in the American corporation.its..both.the.P.However.1996.. other.because.is.given.several.and. E. part. that.as.Schuster. discussed.Kotter.James.that.New. times.isolated. research.promote.. integrated.chapters. for.and.the.found. Boston:.various.York:. The transformation imperative...participants.cultural.difficult.that. Volkmann. Six.. It.... and. John. its.one.. its. James. have.impact. also.implemented. organizational.there..My.Simon.Corporate culture and performance.improvement.Reinforcing New Behaviors and Organizational Change  ◾  275 in..tremendous..can.New.Press.Operational excellence—Using Lean Six Sigma to translate customer value through global supply chains.experience. as. to.contrast.Business.much. organization.as.Martin.improvement.chains.York:.experience.particularly. Sigma.Press. John..and. a.Heskett.process. long-term. with.Leading change.Moss.In.be. Suggested reading Rosabeth. strategy.without.that. or. across.and.Kotter.key.

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methods. information.is.summary.of.this.is. tasks.a.projects.events.workflows..manufacturing.and.not.to.not.This...discussion.planned.process. people.As. particular.and. modular.book.also.a.a. and. book.Six.plan. written. format.major. integrated.their.that.be.information.the.team.organizational.many.planning.aligned.discussions.personal.that. This.to.their. are.become.projects. and.Lean.practice. the. throughout.in.and. in..a.. and. improvement.assessment.and.systems.should.by.through. activities. so.and.ensuring.the.. system.As.organizational.In..execution.change. with.it.have.event.. with.to.of.its. in.can.a.operational.their.process.methods.may.an. are.projects.tools.to.an.conduct.important. opinion.goals.objectives. 277 .change.important.Kaizen. my.on.team.begin.related.of.event.Kaizen.addition.goals.Kaizen.organization’s.that. highly. It. which.the.information.to.can. is.skip.events.problem.a.of..management.moves.process.of.alignment.. a.the.organization’s.been. projects.. has.with. Strategic.the.the.the.strategic.their.earlier..accomplished. also.Kaizen.solutions..concept.an..of. characteristics.often.the.transforms.strategic.chapters.begin.the.alignment.worth.data.book.clearly.several. sustainable.result.with.prior.familiar.process.key.This.of.. that.applied. have.collection.objectives. unique.particular.were.requiring.that.of..reduce.specific.these.of.done.to.. Kaizen.that.used.Six..Conclusion The.enable.Kaizen.of.objectives.applying.immediately.process. office.in.to.activities.In. work.and. and.an.and.a.organizational.Kaizen.this.provide.a.integration.the. organizational.their.observations.in.then.immediately.and.deployment.a.in. a.manner.context.owners. that. improvements...is.integrated.found.in.in. processes.and.as.have.be..improvements.. manual.alignment.to.met. been.In.goals.templates.from.context.because.service.principles.chapters.is.and.included. or.to.events.team.local.of. book.the.must.Kaizen.Sigma.a.or.this.expenditure. Kaizen.is.Kaizen.and. technology.focused.way.disconnected.resultant.enable.resource.result.can.the. missing.set.of.necessary.Lean.. activities.was.using.proven..Lean.this.context.be.teams.then.for.written.analysis.strategic..Kaizen. conducting.their..processes.to.useful.a.project.sustainable..are.work.that.executed.feeling.is. in.was. effective. Service..in. systems.tools.systematic. operational.methods.contrast.implemented.topics.and.and..book.book.Sigma.several. who.In. is.management.In.event.and. support.selection.effective.complexity.production.in.building.

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that.extent.are.complexity. workflows.were.discussed... to. tools.when.years.Kaizen.it.Kaizen. are.using.Kaizen.from.months. are.addition.requirement. locations.into.in.initiatives. the. allocation. on.with. and. analysis.of.they. because..Kaizen..This. activities.office.(NVA). perspective.data. relative.business.the. forces.be..consist.activities...This. it..improvement.identify.Kaizen.more.team.of.underlying.and.options..shared. impact.a.the.deployment. of.also. discussed.can.project.than..have..In.complementary. an.be.process. an. that. required..possible. that.tools. focused.team.very.Kaizen..be.focus.team.a. However. a. identification.and.days.some.events.of.financial.analysis.of..Kaizen. selected. shown. process.rather.to.quickly. communication.of.or.Sigma.operational.(VOC).that.effective.using.However.problem.objectives. improvement.of.events.the.(VOB).isolated.book. most.charter.others.these..that. several. they. topics.describe.greatest.discussion.a...an.within.. topics.Lean..Kaizen..advanced.process. strategies.issues.it. In.strategic. Kaizen.and.health. .context..Lean.to.and.But.and.relate.system.organization’s. be. was. its. organizational.that..then.However. benefit.a.methods. the.team’s.more.an. that.and. is. resource. continuous.. the.tools.deployment.project.discussion. After.shown.deployments. and. and.by.280  ◾  Lean Six Sigma for the Office various.to.voice. have. linked.transactions. only.were.of.brought.effective.improvement.VSMs. weeks. several. and.deploying.assigned..In.be. low-priority.Kaizen.assessment..a. organizational.methods. structure. to.several.customer. be.originally.identified.and.any.method.Finally.as.experts.that.properly..issues. been.with.. deployment.tasks.identification.or. result.is. integration.aligned.... Also.of.. activities. As.Kaizen.deployment.integrated.to. on.useful.related..eliminate. discussion.work.and.audits. and. ensuring.to. to.a..the.linkage.that.a.its. objectives.shown.. to. evaluation.reduced. deployment.These.a. with.cycle.common. data. process. to...to.focus..critical. was.be.as.use.an.a.with.by.. In..events..conclusion.major. process.types. improve.Additional.combination..These. improvement.that.analytical.ensure.of.organizational. but.should. collected. organization’s.require. effective. include.work.problems.Six.advanced. rojects. and.as.safety.bottom-up.time.was.analysis.was.organizations.goal...and.and.a.Lean..supplier. areas.context.process.a.activities.assess. aligned.causes..top-down.if.analyzed. voice..across.to. responsibilities.to.other.was.equipment.compared. this.root.reports. quality. the.prevents. be.and..various.was.are..the. roles.is.customer. analysis... projects.characterization.environmental.this.also. specific. events.with. this.in. the. to.Sigma.and. correct..expenses..this.In. alignment.Six.of.of. higher-level..event.this. selection.the.methods. p .from.Sigma. it.applicable. the.process.done.discussions. contrasted.goals.non-value-adding.many.In.statistical. was. was.than.same. work. of. initiative. very.also.Six. focused. may.as.It. prior. simple.project.deployment. implies.it.events.top-down.simple. prioritization.to.that.. they.can.events.the. Strategy.being.eliminate.related.a.also.processed. analysis.not.performance.the.process.well.an. successful.were. goals. and.of..project.operational. will.a.words.context.the.The.be. the.of.described.book.characteristics.team’s.fact..options.can..because..an. execution.the. These.charter.complaints. ecommended.to.identify.analytical. processes.and.and. r .

process.discussed.not.(TPM) Leveling.configurations Implementing. building..period.of. These.team.workflows Implementating.whose. mathematical.included: Deploying.members... projects.Lean.a.just-in-time.data.specific.systems.preventive.eliminated.activities.stakeholders.Of.showed. basic.presenting.pull.batches Mistake.supplier. meeting. and.requiring.complexity.be. to.topics.be. this.focus.from..a.quality Reducing.and.were.example.a.analysis.for..be.process.background.to.and.need.maintenance.specific.This.were.setup. of.front-office.VSMs.technologies These.hand.their.were.to.described.. assigned.with. perational.lot.discussion.need.perspective.time.material. information.be.important.would..demand Reducing..physical.several.scheduling.Lean.projects..controls. to.an.Additional.root.to. preparing..focused.causes. methods. Six.of.Kaizen.complete.management..initiative.workflows Eliminating.anticipated.roles.within.be.communication.provide.spatial.mistake.relationships Balancing.analysis. in.information.teams.projects.be.The.situations.the.a.with.should. book.root.presenting.necessary.organization.system.extensive.organizational.visual.major.. Another.cause.analysis.course.process.major.process.operations. focus.Once.service.a.purpose.Kanban Importance.of.teams Creating.analysis.is.and.logistics..to. should.short.simplification..and.familiar.matter.Conclusion  ◾  281 o .if. tools.why.teams.likely.transfer.on.when.related. Lean.conducting. be.management Using.and.may. of.could. model.standardized.work.responsibilities.sizes Deploying.of.total.improvement.and.the. p .findings. a.logistics.becomes. Kaizen.measurements Creating... After..all.an.was.reducing.cause.workflow.or.this.of.(JIT).to.tools..all.most.On.its.time Deploying.root.eliminate.this. teams.networks Implementing.improvement..VOC.began.these.at. .to.for.and.at.levels.standardization.work Operational.concepts.Lean.Lean.of.a.discussion.based.information.unnecessary.key.updating. be.continually.days.the.levels.projects.methods.augmented.and..the.Sigma.the.using. basic. was. throughout.systems.and.waste Reorganizing.performance.systems Creating.investigated.created.proofing.proofing Improving.selecting.and.assigned.other.event. major.and.As.assigned.to.mixed-model.in. to..and. discussion.could. Sigma.include.5S. rojects.completed..Six.of.should.linkage.flows Bottleneck.concepts.

emphasis.which.scatter....includes.process.event’s.an.carefully.was.auditing.time.and. of..risk.discussions.can.an.Key.managed. management.include..not.the.The.Related.Kaizen. highlighted.cause. activities.translated.project. discussions. process. discussion.the. did. and.and.to.(what.communication.elements.topics.VSM.that.controls Estimating.ensuring. event.of. how.process. and.a.using.essential. effectively.management.support.charts.that.presentations.events.. six.processes.of.. Kaizen.the. an..planning.and.controls.business. included. attempts.data.checklists..back.application. spaghetti.analysis Developing.the.a.X.Y.focus.deploying.five-why.cause. to. with. cause-and-effect.the.a.matrices. Changing.is.these.root. were. is. recommendations.and.to.straightforward.process.incorporated.organization.histograms.discussion.necessary.control.include. activities.series.and.over.improvements. that. Six.time In.aligned. a.an.and.a.and. encountered.Management.tools. of. this.collection.a.included.are.of. how.sustained.using.similar.diagrams.a.control.changing.a. activities.a. tools.sustainable. and.this.to.team Reinforcing.processes. to. process.them.and.over. job.analysis..behaviors. The.benefits Conducting.templates. discussion. of..cause. collection. that.competing.of.newly.process.work).by..box.of.context.of.Lean. management.priorities. to.that.to.analysis.282  ◾  Lean Six Sigma for the Office Activities.an.to.and.shown.the.Kaizen.analysis. Pareto.findings.In.... and..at.process.a. organization’s.of.data.standardized.improvements.shown.each.. be. .of. included.developing.impact.tools.new.these. show.process. being. final. and.to.gain. d .of.Kaizen..combined.were. designed.implanting.methods. be.and.and.training.the. important.Kaizen.operational. the.team’s.learned. may. are..project’s.that.analysis.the.the.be.and.to.and.did.is. tools. methods.tasks. team.proofing.how. a.on. event.into.organization.analysis.organization’s.findings.goals.process.was.effective. shadowing.present.control. book.improvements.countermeasures.the.was.very.plots. business.a.Important.important.and.of. activities. associated.quality.because.project.a.this.learned.root.are.so.the. (C&E)..of. Kaizen.related.charts.on.included: Integrating.operational.control.people.found. change.systems.effective.set. a.a.of.was.owner.require.root.deployed.It.objectives.within.team’s. because...simple.improvements Transitioning.lessons. p . difficulties.within. data.. Another. necessary.strategies. with.their.work. often.process.organization’s.information. when.analysis.. eliminate. process.plots.several. mistake. integrated.simple.presentation.and. Kaizen.key.for. change.analysis.initiatives.the.systems Training. conducting.standards.ensure. iagrams.collection.analysis.data..a.office. the.improvements. Throughout.team’s.can. fully.local..aspect..activities.given.cause.It.strategic.to.to.with.developing...methods.use.team..lessons. Sigma. a.any.Six.recommended....be.Some. a.time.time.work.improvements.change. to.Sigma. summarize.learned.on.conflicting. developed.root. include. rocess.in.tools. their. work. improvements.work.graphs.time. there. improvement.

proven. appropriate.work. given.improvement.events.way.be.performance.a.engaged. that.of.breakdowns.Kaizen.a. will.controls.been.issues.carefully. has. process.causes. attempted.its.eliminated.In.together.context.be.that.root. process.problem.enables.. to. that.charter.to.and. employees.dashboard.has.stated. difficult.metric.an.as. organizational.status. for. activities.the.countermeasures.well.investigated. .countermeasures.take.and.shown.root.the. when...a.analysis.in..approach.analyzed.original.process.must. change. that.dashboard.can.selected. chains. supply.process.Kaizen.is. particularly. can.providing.target.in. a. logical.. its.eliminate. its. would. book.implemented.event.problem.team’s.status. been.plan.conduct.the. more. change.bringing.of.. across. problems. events.those.a.at. between. large. cultural. methods.team.tied.focus. improvement. this.identifying.empowered.event. be.metric. that.environments. is.rapid. the.team.metric.easy-to-understand.enhance.of.cross-functional. quickly.corrective.been. the.in.context.Kaizen. format.project. book. and.It..Kaizen. a. complicated. by.process..a. be.and.than. locations.level.to. result. various. to.control. is. distances. create.and.strength. my.Indeed.that. it. have.with. process.operational.very. I. As.was.an..actions. differences. writing.process.guide.shown. a.completely.to.to.simple.on.and. experience.by. global. argument. is. many.actively.this.associated.or.working.office.many.the.for.the.best.to.improvement.office. is.this.Conclusion  ◾  283 that. fact.solved.maintain. process.cause.in.have. a.and.using. can.are. But.provide.approach. and.to. It..processes. reason.information..also.rather.the. and. My.This.. process.In.using.a.monitor.using. compelling.easy-to-understand. supported.in.on. to.

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Failure to protect order from the environment. 5. Customer places order. Uniform Minimum = . failure to discover missing or surplus items and related issues. Order sent to customer.5 Hours 4. Invoice Sent to Customer Order Is Closed Customer 1. Customer Receives Order 8.25 Hours Maximum = . Invoice sent to customer. Order Is Shipped to Customer Accounting 6. Order receipt. Normal 8 Hours 4 Hours 3. Customer Places an Order for Several Products 5.1 Accounts receiable simulation: distribution assumptions (similar to Figure 6. Failure to discover missing. 2.5 Hours 7. Dev. Normal 24 Hours 12 Hours 2 Hours 8. arrive damaged or late. Invoice sent to wrong customer or delivery not verified by supplier. . Order accuracy check prior to shipment. addresses item and amounts are entered into the system or incorrectly converted by the system. Invoice paid by customer. . Order Is Received in Distribution Center and Processed 3. Invoice is not created due to missing information or is created using inaccurate information. Incorrect names. Order processing. 6. Normal 4 Hours Figure A1.Appendix 1: Crystal Ball® Software  ◾  289 Accounting-Receivables Distribution 2.5 Hours Std. Uniform Minimum = 8 Hours Maximum = 16 Hours Customer fails to properly receive an order resulting in receipt of damaged items. Exponential . surplus or damaged items prior to shipment. Invoice creation.1 Hours Typical Issues Incorrect quantity or product is ordered. Order Checked for Accuracy Freight Carrier 4. Invoice Is Paid by Customer Operations 1. Distribution Normal Mean .4). Lognormal 48 Hours 3 Hours Order is lost or potions of the order are lost. Accounting System Creates Invoice 7.

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00 54.00 2.00 0. Dev.00 4.00 4. Dev.00 Normal distribution with parameters: Mean Std.40 0.30 0.00 0.00 57.00 16. Dev.00 3.00 8.00 Uniform distribution with parameters: Minimum Maximum Normal (E12) 8.00 45.00 40. Dev.10 0.com –2.00 51.00 9.00 14.50 0.00 18.00 3.60 0. Probability 0.2 Some Crystal Ball® software statistical distributions.00 20.00 Mean Std.00 60.70 0.00 4.00 11.00 0.80 –3.00 8.00 12.crystalball.00 2. 0.Appendix 1: Crystal Ball® Software  ◾  291 Normal Exponential Probability Probability 0.00 Mean Std.00 48.00 13.00 Rate 2.00 12.00 6.00 16.00 50.00 12.00 48.00 10.50 10. Dev.00 Exponential distribution with parameters: Lognormal distribution with parameters: Uniform Probability 8.00 4.00 15.00 6. www.00 6.00 30.00 Normal distribution with parameters: Mean Std. Normal (E11) Normal distribution with parameters: Mean Std.00 10.00 Exponential (E8) Probability 39. 24.50 0. Probability –10.00 10.00 .00 15.00 Normal distribution with parameters: Figure A1.00 Probability Crystal Ball® software is a global business unit of Oracle® Corporation.00 42.20 0.00 9. Lognormal (F10) 8.

customers..example. sending.average. a.the. of.07 3.associated.of.Once.cycle.00 Hours 120. than.cycle.00 70 60 50 40 30 20 10 0 Frequency Trials Mean Median Mode Standard Deviation Variance Skewness Kurtosis Coeff.business.without. time.a.00 LSL=40.an. in.can.can. customers. within. stream. shown.00 80.00 98.of..time. using.the.approves. of. standard. contributor.000.hours.and.a. cycle.03 0..a.team. recommended.to.00 USL=120.04 0.. to.shipping. was.is.orders.this.be.07 0.292  ◾  Lean Six Sigma for the Office Cycle Time 0. is.useful.cycle.43 Crystal Ball® software is a global business unit of Oracle® Corporation.and..01 0. This. to. studied.05 0. overall. invoices.As.is.sending. actual. a.31 --13.3 Crystal Ball® software cycle time analysis. improvements. then.the. reductions. analysis. various.simulation.the. workflow. be.simulation.subprocess.missed.. the.team. hours.have.process..team. building.that.of. www. the.to.has.04 0.1.a.. scenarios.understanding.reductions.invoices.an. process..fact.53 0.actually.49 182. patterns.by.management.Kaizen. improvement. analyze.workflow.. .for.could. deviation.time.91 139.00 100.dynamic.would. cycle.Figure.in.00 Target=80.identifying.that.times.metric. for.customers. less.14 58. predicted.15 0.with.45 80.that.process.which.compared.06 Probability 0. that.02 0.~24.in.Kaizen. methods.A1.A. Error 1.improvement.associated.in. advantage. versus. cycle.com Figure A1.56 98. time.has.process. largest.. of Variability Minimum Maximum Range Width Mean Std.48.crystalball. value. time.with.case.average. augmenting.00 60. process.hours.changing. subprocess. Recall.00 40.an. The. ~12.

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.stakeholder.and.analysis.(SMED). unnecessary..priorities. opportunities...technology.(C. seven...setup.eliminating.procedures.36 Cause-and-effect.244...and....charts..distributed.164 . project. Kaizen.activities.268 Case.operations . Crystal.variables.concepts. for.245 C Call...business.stakeholders.235. creating..and.. readiness.231 .product.and..change.in.system. individual-moving. reducing.67 .. (pass/fail).sampling. bureaucracy.30 .softwear.96 ..events..and.to.180.225 .236... corporate.increased.. communication.61 Canceled.161 China.. reducing.247 .223–224 . scheduling.160..and.11.67.teams..concepts.and.products.282 .support.team.value-adding.transition.a..(BVA).recognition.reasons.and.227–228 .226.centers.121 ..Sigma.223...to.workflows.collection.and.alignment... key.(CE).41 Cash.... interpretation. Minitab®.studies. overview.&.255.48 Cash. Lean.45 Cashflow.Lean.236 .282 ..268.295.and.212 .219 Change.. for. process..orders.77 .226 .flow.. key.. cost-benefit..237 Communication..75 .diagrams..improving..margin.32 .125 ..supplier.231 . process.overview.7 .(IT). Kaizen.and... lack..for. c-charts. prioritizing.Kaizen..91 .variables...charts.Lean.of.222 .281 ..or.175 C-charts.and..222.effective. Kaizen..67 . Kaizen.210–211 Communication..reducing.organizational.of.248 ..252 Change .and. Lean.and.114 Cluster.174 ..normally...232 .prioritizing...274 .of. key. cultural. calculations.. work. control. p-charts..range..250 .198 Capital.235 .296 .process. control.165 ..22.flow. activities..metrics.252 .and. identifying..initiative.analysis.69 .272 Communication.rewards.247.factors.stream....236 Comparison. avoiding.services.172–174.team. international.map.322  ◾  Index Business.of.workforce.Six..analysis.173 ... reduce.operations...162 Compensating..152 Common.in.projects..software..binominally.. process.236...208 Consensus-based..for..23.271 Competitors..management..... format.and.229–232 ....234 .184..building..106 . performance.migration..time.statistical.resistance.249 .245 .46 Checklists.. change.Six..219–222 ..48–49 Competency. 65–66 .process.245 .tools.key.and.gross.20 .barriers.. (continuous).Ball®.38 ...164 .38 Complexity...activities.278 Channel.. processes.and.engineering.and.233 Consultants.. strategy.28.distributed.37.249 .and.282 .system.and.charts.233 .expenditure.219.process...28 .246 .improvement.64 Concurrent.and.projects...in.Sigma.systems.improvement.20..improvement.172.readiness.for.management. infrastructure.workflow.and. organizational.. data. conflicting...technology.223–224 Change.71 Change. information.planning.184 .232 Change.33 Control.219–238..64–66..26 ..and.model.244–245 ....74....(VSM). 215.. value.for. organizational. information.E).... 6.(IT)..analysis.cultures..222 ..278 Continuous.case.

.programs.175–176 ..281 .levels.services.stream.solutions.systems. Kaizen. new.variables..282. process...map....of..data. steps.new.demand. process. modification.testing... training.285.288 . histogram.. implementation.292 ..operations..251 .241.(CTQ).and. structures. inventory..258 .. root.and.types..38 Cycle..46 Customer. implementing.286.22. 288 Customer.sustainability.. 263–264 . 289 Countermeasures.199 .38 Customers.242–243..organizational.261 . cycle.Ball®.verbal..analysis.of.. X-bar.of. box. written.87 d Data.222 ..165–166 .designs.279 ....solutions.147 Critical-to-quality.&.194–196 . high....of.259 .136.148..down.5S...for..167 ...and..31 .cause—late...and.tools.. long.290–292 .shadowing..process.map.tools.73.(C.285.. specialized...177–181 . analysis..analysis.migration.55 Crystal..(VSM).software.calculating. five-why.and.and..or..250 Control.and.289. sensitivity.diagrams. modification..procedures.236–237.259 . supplier.43.reporting.36.plot.analysis...64 Cost.149–150 . errors..questions.and.value.242 . cycle. sensitivity.of.228.impact.analysis..of.41.291 .188 . value.plan. control.patterns.(VSM).times.of. information.inspection.proofing.. failure.... job.visual.instructions.259 .240 .48.219..120. key. purchase..analysis. r-charts. complaints..of.the.of. key. cause-and-effect...meetings..charts..... types...chart...(CTQ). brown-paper..169 .modified.and.and.. new.flow. group. control.249 . reducing.satisfaction. satisfaction..64 Core.and..194. business.batches...stream..211.37 Control.233 .263 . variation.time.259 Core.mode.goods.a.137 .portions.and..226. 259 .288.166 Cost-benefit..245.reduction.. changing.tools..245 .278 . requirements.and..82.and.limits..231.11.46.92.cause. 258 .improvement.process.exercise.audits.40 .288 .(FMEA).. interviewing.root.. control.....of.financial.and.methods.87 ..226. for.stakeholder..239. requirements.and.distributions..232 .reporting.E).times.operational.250–251.sold..of..(COGS). and.of..layouts.analysis. transfer. new..characteristics.71..274.77 .methods.graph.design.38 Customer.222 .286 .collection.223... effectiveness.255 .distributed.290 ..process.up.. elimination.229 Cost.team.and. maintenance.259 . 200..technology...deliveries.245 ..258..253 ..245 Control.tools...197.287..work.141–184..263.259 ..information.250 .190 Customer-facing. Lean..286.and..4th..214.258 ..and... equipment. value. implementing.impact.245 .products.level.227–228.. 255 .of..(huddles).setting.and.analysis.and..and.(IT).282 .avoidance.systems.27 Critical-to-quality..of.. Lean..285–294 .293 .improving..Index  ◾  323 ..effects.245 .259 .147 .62 . Kaizen..259 ...analysis. building..296 . statistical..events.259 .analysis.metrics.258 ...and..172–174 .258 .Poisson.or.241 Control.164 . mistake..290 .analysis.other.. at..

(DFSS)...and. example.9 E-mail.stream. level.leaders.160–162 . Pareto...methods.256 Failure.196 Employee.analyze..222 .value.295 Dell.221.time.reports..14 Deployment.137. hierarchical.258 ..options.. scatter.loading.40.facilitation. process...119 Financial.strategies.Sigma... methods.. variation.department.278 Entitlement.(FMEA). methodology.continuous.12.pricing.effects.66 Design.mode..280 Deployment..collection.15. level.258 Failure.of.67 . process..minimizing.champion.development.11 Event.106.impact.or.and.139 .264 .project.and..87.rate.data. common.151....methods..failure..255–257.94 ...195 Error.diagram.143 Data.for.of..90 .and.288 . classifying.demand..... uniform.46 Design.12 ..55....222 English.organizational.66 Demand ..Six.168 ..people). standardized..151 ..Six.plot. top-down.324  ◾  Index ..training.events.269 Distributions. methods.269 Downtime... variation.change..229.258 Failure.execution.high..234 Deployment.115 Finance.12.191 Failure....200 Finance..31 Excel.10–16..in... targets..89...37 e Economic.analysis..19 Enterprise..121...104 Employee.for. 240.and.mapping—SIPOC.31 Deployment.in.graph..209 Empowerment.105.characterization..(DFSS)...(DMAIC).. operations. template.facilitator.66 Design...integration.. 135 Drumbeat...198. templates..analysis.. time.added.analysis.turnover.25.(RPN).language..and.5.170–171 ..13 Design.158 .132–133 .and.and..15 Everyday.effects.16..93 ..52..191 Expense.67.chart.product.(equipment.94–95.. 67 Design..288 ..types.rating.modes.117.and.of..Sigma.points.154 .services..280 Deployment.290 .tools.130 Fact-based..reduction.operations..conditions. spreadsheets....90 ..163 .mode.222 ...89 Error.154 ..percentages..and. spaghetti.. aligned.257 .errors.288 ... patterns.for. normal. prioritizing.95 .simplification.and.roles.low....66. process.36 Exception...66 Design.improve.210 ..296 .. (FMEA).rates.(VSM).131–135 .of..Manufacturing.31 ...104.178. value.reducing.....priority..methods.responsibilities.200 Finance...89.analysis.measure.standardization.prevention.12 .service.planner.296 Defects....reports.(EVA)... bottom-up. control. risk.14.application.11.12.of.151–159 .map. tools.. in.19. purchasing.295 .288 Diversity.98. methods... Kaizen.170 ...255.. exponential..116.(EAI)...123 Equipment .causes..36 F Facilitators.process.130 Event.and...61 Define.40 Deployment.....of .(DFM)..series..

261..233 .and. process..Review.in.risks..range...82 .208–209.172....232.in.82 Five-why..193 Green...workflows. 145.and. through..metrics.of..charts.53 Global.208...risks.(5S).risks..statements.282 .business.recommendations. worksheet..prioritizing.296 Generic.change..19 Hiring..167–168..and.282 .chains.137.. scheduling.122...209 Histogram.events..change.202 Five-S.systems. 184. customer.233 ..190 g Gantt.improvement.factors.system.flow.125 ..supply.....150 .and.53 Financial. Kaizen.analysis.event..activities....Kaizen.48. statements..language.233 Implementing.230 High. alignment.19 Goals.22. sorting.risks.financial.implementing.191 .belt..risks.of. order.32 Improvement..behaviors.positive.for......team..team.elimination.process.48 Financial.24 Financial.service.233 . identifying.201.. sustaining).282 Incentives... technological....methods.analyzing.8..225.114 Individual-moving.202.167.224 .55..behaviors. reinforcing.test.breakdowns..and..234 ..32.221 India..operational.29..278 .Index  ◾  325 Financial.Business.and..261–262 “Functional. process. 41–42 Goodness-of-fit.184..(sorting.173. (for.solutions).and.36 Financial.....and. self-discipline. supplier.. steps...168 Human.standardizing.90 .map.. 258. processes.risks.impact.charts).46.143. skew.46 Financial..31.recognition.objectives.workflow...275 Global.167–168.. project..280 Financial... change..3–110.teams.253 Information..23 ..and.23 .115 .200–201.209 ..235.167 ...using.. 247.43..process.....of.solutions.and..systems...32 Information.operational.80–81.89 Hindi.263 Improvement.reports.resources. building...in..209 .reporting.improvement. Kaizen..charts.follow-up.(I-MR.233 ....shining.improvement.detection.234 ..case. process.195.39 High.breakdowns.defect.examples....expert.. economic..silos”.278 .. process..272 i Immediate.22 .show.assessments.....workflows. standardization. process.81.new..66 Implementation.and.127.285 .80 .statements—profit-and-loss...and..89.down.metrics.and.. implementation..165 Follow-up...54 Generic.projects.activities..opportunities.road.233 .174 Improvement.. changing.negative...financial.outsourcing. identifying.25 .. reward.setting.high-level..166. identifying.113.process.209 .209.level..to..219–276 .teams..212 .improvement.14 h Harvard.235.sheet.projects.287 Graphics..219–238 .236 . cultural. regulatory..activities.38–39.165–166.methodologies.214 Financial.(HR)..statements—balance.breaking.233 .quality.57..264 .forecasting.32 Global.a..267–276 Improvement.53 Improvement..and.. organizational.

.80–81 ..137 ... apply.cycle. mistake..investment.222.116 .19 Job...233...operational.process.and.. as..82–83 .. first.mistake-proofing..175 ..work.77 .(Ys).78–79 .198 .182 Inventory. activities..methods.181 . apply.273 .124..136 ...177 ...flow.4–5.177 Inventory.event.operations.92 International.designs.time.and.135.180 .178 ...and.material.methods...times. stable..15..103..112..and.37 ..139–140.data..service.239 .and.40.235 .... strategies..80. waste. analysis.... 275.191 .175–176..level.preventive.66 Interorganizational.179 .96–98 .and.142 . major.of.92–93 Just-in-time.specifications.19–20.requirements.networks.(IT).ration..(ISO). reduce. 120.111–218..level.105 .. reduce.setup.237.239 .and..326  ◾  Index Information.... level.227 .management.77.operations.level. philosophy.language.of.188 Internal.. implementing.demand.quality.76 ... worksheet.(JIT).176 Just. communication.method.systems. third. reduction.9001..198 ..configurations.and.4..38 .prioritized.workflows. total.stability. 277–279 .105.53 . standardization. balanced.investment.128 .135.177–181. reorganize..9000.of.payment.105 Infrastructure.high .. ISO..278–281 .utilization.of.to.analysis.(SMED). deployment..technology.platforms. ISO.change..flow.134..165. obsolete.. operational..major. improvements.84 .. balance..of..and.analysis. process.22.. 76–98 ...77 .the..implementing. process. asset. waste.develop.Institute.vs...cycle.89 ...projects.131..27 Internal. continuous...a.analysis..for.process.94–95 .tasks. analyze...247.234.and..for. excess.reasons..90–91 ...7 Kaizen.and. supplier.Standards.and..eliminate.32 .14. 5S.operational...24.data.material.203 Invoicing.business.turns.lot.60. efficiency. ISO.24..prescreening.orders.. systems.shadowing. problem..types..cause.waste. checklist.4–7 . service..collection.189 .and.124...158 Job.Internet.improving.sizes.standardized..external. root.121 .case.of.data.candidates. second.59..125 .125 Japanese..26 .improvement.269 Inventory.. high. prioritizing.76 K Kaizen...and.and.196 .157 ..tools... canceled...times.137 . conducting..and. communication.31 ....159. information.proofing.work.analyzing.137 . change.195 . link..on.136 .methods.demand. data...in..physical..251 J Japan.94...239 . defining. control.125.5S..30.84–86 .maintenance.92 Job.182 .37 Invoice.87–88 ..9004.272 Internal.letter.seven..of...collection.time.268 Initiatives.and..240 Internet..improvement...changes. work.59 .. analysis..239 .97.60 .time.reduction..improvement.204 ..183 Inventory. building.60 Inventory.data.shadowing.systems..(JIT)..in..

and..effects.129 .and.63 Kaizen...22..267–268 .and..audio.workflow.transition.. .277 . . evaluating.supply.maps.187 identifying.and. and. video.215 process.research..29. .221. ... .231 ... ..213 . operational.12.126 .equipment. ..263 .114 . 234 ....projects.data.117.114 .123.55 .conferencing...... international.marketing.126.and.risks.charters.of..118..product.for.organizational.282 ...212 implementation.team.22 .138 .and.Kaizen.examples.138 facilitation.126.members.for.274 .224 . ..improvement. ... communication...229 process.operations.129 .causes. 131–135.events..personnel..182.and.with.of.components.event..and..readiness.goals.of. 121. facilities. .analysis.151.286 control.115....and.and.. .. follow-up.and. .196–198 scheduling.for.. 269 process.process.in. project....characterization.breakdowns. .163 Kaizen.of. .and.layouts.and.alignment.. strategies. process.analysis. 141.tools. .solutions.115–116.with.analysis.129–130.240 .of.8.measurement.and. 139 key..119–123. . .across.122 .and.22.and.improvement.training.objectives. voice.for.activities. and..and..and.155 process.team..and..with.259 roles.activities.118 training.responsibilities. .26 Lean.233 six.. .and.and. . ..control.of.Index  ◾  327 data. .improvements.organizational.of.team....128.. . schedule. project. organize..and..analysis. obtaining.causes.15 .222 . goals..26.best-in-class.of. ..and. process.124 .139..26.232 evaluation..117. .change.222 transferring.root... implementing..229.....charters.and..212 Kaizen..189.200.customer.experts..190.113–124.and.chains.160...42.223.277 .and.and.111–112.. infrastructure. new..with.221 consultation.and.methodologies.(FMEA).153..and. 207–209 project...process. .256 general.global..and.prioritizing...of.. improvement.54.analysis..114 ..alignment. conditions.stakeholder.steps.of..231 Lean.financial.122 . project.220 analysis.objectives..258 failure.50 . activities..workflows.and... kickoff.personnel. .5 Kaizen.124 . sponsors..233 .collection.. alignment.teams.charters.. support.and..32..233 .127 roles.three.improvement.134–135.team.202–203. ..improvement.. deployment..225 . .system.259 .254 net.(NPS).. .process.235..119–120.128 ..and.129 failure. supplies.130 .36.mode.global..116. ...205...change. Kaizen. ..23.development.supply..agenda.score. . prioritized.115 .25.workflows.224 communication.. obtaining.220.responsibilities. project.questions.118.and. worksheet. .191 improvement...137 measurement.of..examples. objectives.analysis..30 Lean.116 . rapid..255 support.the. .for.. 269–270 . strategic. .local.Six..131.118 ..275 . alignment.184 decision-making.deployment..(VOC)..of. planning.280 project.112 recommendations.229. value. preparation.and.components....136 analysis.cause.234 implementing.identification.goals.277 .leader.stream.127 root.activities.and.and..workflows.process.solutions. .36.risks. .. .collection.116 rapid.. facilitating. ....Sigma.promoter..277 ..177.of... strategic.and.chains.180 empowerment.organizational. objectives......195 data.and.185 change... .train.117. opportunities.across.and. .128 .127.. resistance.

..of.70. process.of.62 Kano.8.production..122 .output.4 ..variables.19.focus.of.240 .282 Lean. 18 ...45 Lean.differences. performance..resources. financial.conducting. human.common..needs.collection... satisfaction.191..44.328  ◾  Index Kaizen..1:.Sigma.137.initiatives.233.complexity..7.and.274 Lean.14 Lean..268.of.. process...Sigma.analysis..the.customer..the.98..solutions.workflow.and.90 .(KPOVs).11 Lean. culture. voice...242 Key.32..23 .46–49.across.(SMED).chains.event.31 .2:. basic....changes.conduct. impact..202 .137 .cultural. product.128.125.67 .281 .57 ..220 .5.138 Lean.177 ...team..concepts.296 .29 ..19 Late.(KPIVs). operational.269 Lean.Dr.231 ..of.evaluating.. metrics.223....25 Lean... implementing. analysis.. initiatives..184 Lead.the. sales..and.Kaizen.financial. organizational..and..and..of......63.. reducing..184 .78 Korea.. six.14 Lean.assessment.viewpoints.68... deployment..change. behaviors.268..processes..57 . common. control.of.280 Lean..19 Kotter.input.Implement...112 . concepts.and.198 .222.and.205 ...process..of...process..Sigma. integrated.tools.. cards.event. marketing.71.10 ..metrics.31 ... process..P.analysis.definitions.274.event. activities.change.258 ...143 .82.opportunities..180.. initiatives.reasons.4 . excitement.process....200 .62 .62 . tools.and. improvements.46 .32.49 Key. examples..align.23 .. process.295 .36 .needs.. Lean.design.44.setup.42. rapid.global.metric.5S.23 l Language.242 Key. Kaizen.77..267.discussing.workflows.160..Design.strategies...24.. major..expert..events. supplier..39–40 Lean.metrics..195.networks.Six.improvement..and.191 ..101 Kano.improvement... operational.for...45...102 .96.(VOC).processes. deployment.24 .30. communication.methods.and.231 .69.275 ... 270 .needs..236 .229–232.time.46 .. inventory.32 ....64 . Step..and.objectives.. methodologies.of..189.41 Lean...90 Lean. Step..improvement..deliveries..46 .and.variables.. process.improvement. tools.46 .61.268 Kobayashi.and...and.90.(DFSS).31.5 Lean.240 .66 . changing.level..and.deployment.time.metrics.language..Kotter. projects.and.and..Lean.236 .26.projects..supply..222 .needs.P.Six... data.129 ..plan...237....(HR)...61 Lean.masters.and.136 .55 .46 .. performance..analysis.system. diverse. procurement.of.125 Korean..62 Key.initiatives.(listed).for.of. process..269.28 Kanban...of.John.of.. operational.stakeholders.approach...and.Six..22–25..135 Leading Change by. reduce.methods. prioritizing..characteristics.105 Lean Six Sigma..and.55 .operations.46 . concepts.John...280 ..metrics.224 . Step.impact.100..46 .230.136 .level..methods.24 .philosophy.and.Kaizen..3:.workflow.

manufacturing.unnecessary. 24 . financial..46 . low.138 .(VOC).Just..cycle.business.technologies.16 ..35 Leanness.for.143 Lean... reducing.Teams.26 .197 .teams.system. plan.64 .networks.selection..28 .. root. develop.methods...70–73 .46 .46 .update.of.workshops. Lean..69 .and. project.metrics.67–68 .61..measurements. high..111 .112. projects.improvement..(VA)..cause.demand.event.and.135 Major.61–63 Lean. ten.assessment. high.. voice..chains.methods. 63.14.customer.and.process.14 Maintenance.and...capacity.and. ten. compensating.and. management.technologies..37. global. Lean.a.Six.champion.and..change...steps.pull. Kaizen.36 ....schedule..designs. continually.training.and.50 . problem-solving.46 .(leadership.operations.32 .measurements.and.67–68.Six...metrics.and. reduce...279 .tools..41 ..teams. mixed-model.117 .of.57–110..and.and.53. project..22..76–98 . project.64–66 ..Sigma.15 .Six.elements..Kanban.94 Lean.32 .the.82–83.key.98 m Maintenance.37 Link.220 ...and.29 .26–27 Lean.improvement.workflows.26..improvement.Value.event...31 .100 Lean..of.tools. implementation.process.and. benefits..98–99 ..process.100–101 . project.. low.to.97 .logs..information.Basics. communication. visual.value-adding....operations. understand.process.(JIT)..of.Maps..robust.an.Six..27 ..identification.supply.process..map.sizes..102 .TIme.unnecessary.system. and)..scheduling.systems.controls.implementing..cost.Time.and.and..initiative.161 .Six. four.internal.office.16 .update.and.29 Lean.279 Lean. evaluating..product.36–38 Lean.chain.data... implement. create.metrics.networks.and..41. elements.work. Customer).VOC.30 .69 .event... in..38 .. business.Sigma.and..38 .....21.of.Kaizen.of.. service.68 Lean. executive..Stream.planning..85. technology.in. alignment.and.and.metrics... rapid. problem-solving.55 .Sigma.30 .100 . performance.content. supplier..74–75 .39. implement.274 Lot. deploy..case.of.time.97 .281 Lean.methods.pull.. Lean. analysis..277 . team.33 .26–32 ..(JIT).team.23 .Teams.. 102–104 .....29.. flow. planning.and.78.systems. value.41 . eliminate.product.39 .and. continuous.visual.21 Lean.277–278 .system.operations.Index  ◾  329 .Sigma.of.operational.30.Sigma..process.-..Kaizen.Sigma....deployment.39 .12.32 .32.of.(middle.teams. supply.Six..supplier.high-level.and..the.workshops)..105.Six.22 .Lean.and.of.Sigma.96–98.of.elements.flow.to..complexity.variation.and.teams.training..24.222 .tasks.key.Sigma.46 .change.process.32 ..29 ..(Voice.process.29 .methods.31 . systems.. simplification.Just..83 Local.analysis.of.38 .in.systems.operational.and.(VSM)..58 ....14. continuously. teams.29 .142. strategic.....and. implement.in. performance.106–110 .the.system.212 .systems. deployment..3–4.conducting.charters.alignment.the. eliminate. tools.38 .55.reducing.control.38 . low.16. building.metrics.environment.elements.stream.support. strategies.Six.yields.29 .the.of..33 .work..materials..of. create...24.(VSMs)..complexity.. reduce.complexity.

characterization. Companion.36 ..153–154.295–297.28 .46 .268 .38.189–190 .toolsets..84–85 .customer..66 .testing.schedule.168 .(NVA).stakeholder.language.using...analysts.....event. eliminating. strategy....61 Mitigation. processes. Pareto.scheduling.91 .and.analysis..tools.129 .232 .chart..205 Materials.and.(NPS).of. value..reduction.66.and..53 Malcolm.263 Metrics .296 .strategies.of.254 .Sigma. inventory.and.230 New.modeling.example.examples.of..softwear.and.255 ..270 New.plans.. Lean... method.chart.Quality. standardization...Baldridge..and.29–30 .products ...46 Market.66 ...280 .. 295–298 Misalignment. reproducibility.173..214 New.295 Minitab®. operational...254 Metric.196 Nonrandom..system.statistical. 198..127.procedures.map.160 .and.191.87 .statistical.shadowing. stability...297 .workflows.191.98.37.of. process. Pareto.score. process.of.264.205 .analysis.177 .codes..37 ..254... reduce.scheduling.and.Six. Kaizen. methods.283 .and.. policies..Six.flow.19 Market.330  ◾  Index Major..Software....supply. Lean.23...295 .254 .254....207..error.66 .and.and.Inc. balancing.reinforcing.89.and. accuracy...chain.296 .255 .201 Mistake..and.Baldridge.57. market.higher.36 Metrics...and...example. pull.a.240 Management..66.7 .chart.mapping.. Kaizen..296 Minitab®.297 Minitab®...240 Malcolm..64.. financial..operations.proofing. 281 McDonald’s.249 .230.253 Non-value-adding..185 Mandarin.285 ..254 . define.254.222 Mistake-proofing.award... linearity.systems.behaviors.and.204–205.job....120 .the..265.and...247.... development.project..135. balance.207 .teams..Sigma.195.and.(VSM). simplification.2).263.57.patterns. functional..by.106 .229 ....85 Mathematical.29.265 .and..137 .cycle. Lean.187 .times. process. Companion. process..32 . 253.system. analyzing.11 .Minitab.87–88 .162... Kaizen..features.(Appendix.295.data.improvements.inventories..156–157 ..66 Mistakes.190 Miscommunication.278 .promoter......and.level.254 .research.. design.complexity.7. Lean.254 Measurement.components.charts...Statistical... operational.204 Marketing.issues..189 n Net. control. common.102 .258 ....system..and.and.methods..stream. Kaizen..206.231 Mixed-model..research.team.data.softwear.... project.Quality.improvement.99.increasing.variation.. resolution...and...2.products. error.142.29 Minitab..analysis.45 ...and.Quality..penetration. repeatability..product.278 .criteria.. process..process.74–75.Sigma.84..205–207.material.flow.102 Measurement..of.296 Minitab®.92..research.system.21 .team. process..changes.44.Six..255 .. creating. creating. prioritizing...dashboards.alignment.Companion. control. 176–177 .(VOC).296 ...reporting..295 .. buffer.control. key. voice.and.20..

..jobs....267 .39 .69 .. inventory..environments.projects. about..and.defects. value.19.29 ..discussing..per.63 . sending. critical.themes...to.percentages.improvement..Corporaton.from.financial.mistakes.(OR).... scrap.71 . production. reinforcing. dysfunctional....metrics. Kaizen..128 Operational..exercise. 69 Performance.Excellence.(VOC).of..performance.data.metrics .58 o Obsolescence..cycle...269.map.objectives..221 Organizational. critical-to-quality.71.. effective.224 Operational Excellence—Translating Customer Value through Global Supply Chains.themes...environment. 70 .282 . value.space. limited.the.event.cost.63 .map...149–150 .69 ...134 Operational.workflow..W.60 .and.. Kaizen. process.stream.(CTS)..of.measurements. brown-paper.25. standardizing.168 P-charts.and.168. James.(units..collecting.chart.environments..37 Operations .154 .288 Outsourcing.. cultural. time.84 Oracle®...services.measurements.common.277 .145 Operational.behaviors... percentage.268 .64 Overproduction.253.or..11.143..184.277 ..61 Office.differences..(CTQ)..time..113 ..gaps..safety. Lean.39.184.32 Office.Index  ◾  331 .and.expenses..in .55 ...195 Outliers...change. prioritizing.70 .investment.supply.information.times.82 Pareto.work.within.and.themes.269 p Packaging.processes.268. minute).31 Operations..247 Performance.232 Organizational..69 . implementing...9 Organizations.barriers..proofing.event..of.products..of. simplifying. mistake.286 Organizational.and.26 Operating... mathematical.61 .61 . voice..53..of.(VSM).themes. creating..systems.69 .the.and.61 Np-charts.throughput.247 Organizational..24.and.70 .new...production..145.change.. rapid.stream.by.percentages.168 .254 .percentages.and.information.lines.274.. repetition....content..for.stability. setup.40 .63 ..283 Organizational.or. roles...and. Kaizen.responsibilities.182.269 Operational.operation. people).chains.research.119 Operational..required..productivity.(CTD)..or.29 Performance.63 .233.(CTC). identifying.63 .rate.(VA).activities.office..breakdowns.....chain. reporting.232 .269.floor.(equipment.120 Operational...31 .40 Operational.supply. transportation.incorrect.analysis. rework.... measurement.272 Organizational...180.workflows.69 ..41 Operational.training.customer.11.task.43 .. critical-to-delivery. critical-to-cost. Lean.169.147 ..to.structures.system.19...55 Performance..18.reports..57.goals.55 Operational.55 Organizational.188 Outsourcing.(VSM).69 ..team.value-adding.44 Operational.270 . global....of... analysis.cultures.38–39 .269 .change . downtime.60 Office.. allocated..methods.assessments.Martin..of.31.

..119 Process.79 Pilot. elimination. training.(SPC).of.improvement.. implementing. measuring.of.operations. 5S.163 Process..scheduling.required.141 ...104 Process.audits.332  ◾  Index Physical.analysis. organizational....for.workflows.287.inventory.control.Excellence.. 233.effectiveness.57 .264 .improvement.and.212 .. scheduling.222 . lack.46 Priorities.243 .distribution..189.186....effect.changes.141.tasks.change. collecting.10 . root.168.........control.. implementing.242 ...worksheet.common.151.proofing.30 Process. identifying.work. examples. analytic.to..procedures.147..78 .236.operations.workflows.137 .243 .mode..22 Process.163...process.152.procedures..and.135 Process..261 Pricing..experts .194.185.234.. changing..151–159 Process.202.strategies. opportunities..and.cause. simple.119 .standardization.271 .levels.data..243 Process...295 Present.of.findings.process.change.characterization.waste .analysis.32 .242 .122 Process.of..effects.82 Process.design. mistake.levels.213 .updating..102. audit.supply.outputs....breakdowns..developing.activities..7 Process.layouts....and.. failure.. office.optimizing...57 .standardization.. key.analysis.changes.200 Process.222 .30.prioritizing.240 . organizational. poor.methods.simplifications..training.global..tool.systems.using..procedures).243 .....tools.characteristics.conflicting.complexity..190.inputs. 195–218.224 Process.32.. common.barriers.. impact.231 ..247..eliminating...tools.82 ..253 Potential... employee.of. root.analysis..process.149.analysis. floor. strategies.support...workflow..7.analysis..222 .155 Process. 194–196 ..documentation..mapping—SIPOC.263 .57 .153 Process. excess.improvement.(FMEA).57 .configurations.information.reducing.243 ... full-time.owner. cost-benefit.training.questions.to.inspection.distribution... across.196.and..243 .57 .241 Process.236 .layouts...60.lines.organization.153... reducing.... obtaining....235 Process.improvements... Lean. organizational...failure.239..256 ..teams... continual..28 Process.269–273 .and.136 Probability.240 .224 ...223.137 .223 . methodologies.281 Process...226...274 Process.walkthrough.237 Process..mapping..analysis.barriers.and.of...245 Process.10 Process. part-time..288.185–193.and.analysis.examples..(floor. training..78–79. reorganizing. Kaizen..... control.sustainability.process.290 Process .242.and.196–198 Process.240.teams.of.122 ..processes.approach.variation.and.258 PowerPoint..event.242..243 ..44. 199–211 .264 Process.240.demand...53.controls..241 .study. lack.control.60 .188–189. poor. common.148..22.197 .and.191.and..281 Process.on.to....57 Process.area.240 Process.243 .279 .227 .cause.225. work.44 Process.242 Process. variable.189 ...121.of.Lean.237 .. implementation.196 Process.process.improvement.185–193 . statistical.....283 .160–162 Process. and.methods.38 Prioritized...audit. overproduction..36 Poisson...technologies..worksheet..185. organizational.

processes.of...Index  ◾  333 .224 .and.mistake.35–56.material. Lean.24.57 unnecessary. process.marketing.and.benefits.and.information.227 . waiting. simulation.work.measurements.and.the. prioritizing.management.144 Process..supply..268 Project.and.statement..and.operations.119 . metrics...high-level..222 Project... financial.60 Process.flow.191 .200 Processes .events.Kaizen.153 .41...190 . Lean..chain.identification. Lean.assessment.199–211 .proofing .charts.and... product. common.product. information..(SMED).model..analysis...process.279. waiting.rationalization.teams..173 .of.analysis.202–203 .51. Lean.and.40 .development....workflow...product.process.59 Profit-and-loss.assessment.proofing.20 .available. office.and.287 .53 .204–205 ..129 . three-dimensional.and. supplier..200–201 .261 Project.281 Processing.116 .42 .performance....and.... financial..57.296 ...common.identification. example.. financial.and.8.142 . balance. operational.137 .190 Production.of.motion.and.18–21 Processes..receivable.forms. control.setup..57 .115 Product. communication.61 seven..220.technologies.119 .changes.289 .69 .champions.201 .market.process. cost-benefit. changing..waste.people.208–209 .59 . project.90 .. brown-paper.goals. waste.characterization..119 . accounts.....290 .systems..of.of.38 . value. Lean...chain.. simplifying. new.and..process.42 .9 ..team. .24 .and.19.processing.. reduce.36 . transfer.examples.softwear.41–42 .example..yields.objectives.control.transport..map.43 .205–207 . formal.stream.....40 ..high-level.of.72.... auditing.events. project.57 Process.151.188.36. quantifiable..(VSM).(P/L)..analysis.data. analysis. machines.. Kaizen.135 .. process. preparation.statistical.. analyzing.alignment.18 Product....52 Project.43 .... improving.113 . project.forecasting.24 .50. hiring. mistake..down.metrics. control.58 . implementing..60 Procurement.55 .32 .deployment. unnecessary. outsourcing. Minitab®.and.57.194 Project.business.and.or.153 .. breaking.models.. breaking.32 .Kaizen... operations...analysis.60 .and..27 ...50 .43 .and. process.142 ..environments.55 . quantification.149 .complexity.classics.capacity.of..55.controls.mistake. Excel-based..materials. layouts.117 ..of..every..21 . goals.50 .exercise.defects. . objectives.47 Project..222 ..for.288 ..and.research..receivable.11. pull.by.50 .proofing. new.goals.or.operation.21 . example....200.forecasting. selecting.map. new...30 ..identification..36 .by.at.projects.supply...systems.. prioritizing.employees.and. manufacturing.and.....235 .tools.115 Product..154 ..charters .....52 .(VSM).workflows.227. collect. outsourced.stream.redesign. financial...30 .and.identification.203 .design.45.and.of.197.down. performance.and....or.time.product.metrics. standardization. Lean.84 .77 Productivity .233 .research.37.workflows..57.150 Product.219.service. value.solutions.50..14.15.plan. accounts.145 Project...characterization..and.

increases. process.43–44.of. cost....31–32.. increased...240 Quantification.satisfaction.189 r Random.time....102 .87 Red-tagging.297 Quality.eliminating.in.195 Regulatory. cost.161 Push.90 Redundancies..transition.28 Recommendations..269 Projects.90–91 .supply..50 project. typical..334  ◾  Index conducting..and.274 .chain.product.and...227 Projects.and.56 . . increased.212.analysis..219 Project.metric.289 .232 Resources.of .sold.. and..team.system.projects..35 Project. increased..227 .230 Reinforcing.benefits. management..reduction.work-in-process. Kaizen.and.proposed.example.charts.reading...227 .satisfaction.100 Pull.239...100–101 .267–268 .controls.52 Project.chains. overview.102 Q Quality.dies.process..service.48 Project.Companion.15 ..40 Quick-response.F.39 Pull.. Kanban.275 Rebates.160.inventory. stable.(SMED).251 Rapid..116 Project.100.(WIP). templates. . .metrics.to.manufacturing.and...51.Roadmap.227 .system.events... codes. summary.to..conditions..260 Quality.customer..nonfinancial...89.40 Project. .45 Project..282 .methods.improvement..22.46–49 Lean.activities.identification—process.production.methodology.teams..259.scheduling.goods.227 ...cards.daily.39.on. eliminating.60.(IT). Kanban..of.external.teams.control.. minimize.298 Quality. important.267–276 ..12 Return.230 Red-flag.55...constraints.avoidance.50. 45 Project..behaviors..definitions.communicating. increased.identification..satisfaction.227 ..a. 269–273 Relocation.organizational.14..leaders.control.. single..financial. ....100.296 Project.(SMED).264.identification—process.and. information.100 .supplier.267–268 .55 ..39–40 key.117 .274.262 Pull..plan.32 .....Companion.supply.. revenue.80 Reduce....improvement.risk.global.2. .analysis.forms. resistance. Kaizen.demand.questions.4.or..visual..technology.projects.systems.20 Resistance.35–56 prioritizing.52.changes. 43–44 ..changes.12 Project. SMED..demand.benefits.Frederick.151 Range..and.systems..of.225 .solutions.systems. change..cashflow.of ..Lean.of.Lean.91 ..259–260.103 .234 .. implementing.36–38 overview.change. ..105... short-term.employer.assessment.297 Quality.and....prioritization....charter.plan.227 Proposed.37...of.examples.presentations.across...worksheets. implement.sampling.7 Reichheld.assessment.customer.... Toyota....to.setup.scheduling.. generic.. assigning..213 .investment..and..project.processing.Companion’s.new.225 Project.. suggested.32 ...(COGS).. expense.212 Projects .28 .using.51–54 project..and.. prioritizing.PowerPoint... others.analysis. 31 ..minute. allocation.66..227 .(ROI).15.154 ..exchange.

implementing.. cost-benefit.277 ..121 Service.and.and..and. failure.Index  ◾  335 Revenue.industries.. process.process..and.for. change.287..286.. disorganized.and.of.breakdowns.management .113 .tools.case.125 Single. deployment.systems.200 Risk.Quality. 272 . example.237 .global. change. infrastructure. level.Financial..diagrams.195 ...analysis...261 .and.135 Sharepoints.. level.223 .143 ..3.and.promotional. concepts...increases..workflow..rating..prioritizing..92..behaviors.rework.focus.workflows. reinforcing...and.171.receivable. 180 .273 Shining.professionals.286. process.across.287 Simulation. cost-benefit.and.117 Root.(S&OP).and.of.example..258 Road.activities...supply.202 Sales.supply..a.team.and.269 Simplification.240 ...192 .192 .change. process.operations. Kaizen.improvement.and..223 .plot.events.team.and.and.272 .processes.world. aligning.new.a.39 .115. reduce.map.capacity...182 . cause-and-effect.281.. metric..priority.142. loops.225 .assessment.91 Six..estimating..and.model.dashboards..160 .separation.Board. key. data.. histograms..141.282 Scrap. waiting.&.characterization.196–198.236.1.chains..232 .global.mode..and. improvement.192 .data.263 .strategies.219. communication.290 .processes.. process. operational...(C.196 Service.19..inventory.25.improvement.recognition. Kaizen. building...and.business.36 Reward.and..and. accounts.279 . conducting. Kaizen.2.transition.improvement.opportunities. common.. creating..planning.287...projects.80 Sharing.and.. process..E). level.31 Sarbanes–Oxley...136 . standards.....marketing.change.23 .methods.and.....67 Service..chains.194 .analysis..analysis.288 .162..recognition.office.collection..solutions.80 Simplification.of. project.dies..reduction.and.process.receivable.227 ...and.202 .195 ...286.and..200 Senior. 222..Sigma ..systems..changes.119.time.effects.exchange. 90.212 .across.(SMED).150..the... 255 .and.analysis . organizational.116 . reward. opportunities.Services.. follow-up.167 .8.events..221 .time. Kaizen..272 Service. accounts.30 .188 ..and.297 Role.and....minimizing.(FASB). workflows..process.analysis.285 .analysis.286 . collect.2.231 Rework.115 .analyze.improvement.and.readiness.292 Singapore.96 Setup.systems.282 S Sales.11..64.53 Simulation.288 ..40 .. control.(FMEA).77. activities...team.274.7 ..26 .137 ...197 . 270 . changing.stakeholder.analysis.278 Roadmap.. process.90 ...164 .. Accounting..(RPN).percentages. identifying.Lean..204 Sales.... data..knowledge.202 Scatter..cause.and..Companion.analysis..breakdowns.and.135 .minute.....(SMED). example:. process.environments..change.233 .change.157 .184..190...222.214 .setup..170.204 .134 Scrap..activities.across.and.285. percentages.

deploy.191 Six.supply.. deployment. ...137..process.63.input.steps. deploying.control.problem-solving.analysis.a.184 .processes.lean.60 Statistical.21 process.of.strategies...Minitab®...dashboards. methodology.61 Six..alignment..metric.principles.tools.226..259–260 .22–25 ..team....259 .189. .. control.270 .process. 254 Six. 244–253.240 .analysis...control. creating... ..activity.from.plan.. Kaizen.support.17 .67 Six.98 .improvement.networks.Sigma.of. .improve.5 .new.analysis..222.execution..collection..223 .10 .error.template..diagram.. overview.267 ..61 Six..61 .137 outsourcing.. (define..and..224.case. communicating.identifying.184 .122 .system.. management.(VOC).mode.53 .178 . improve..32. quality.. Six.(SPC)..in.191 SMED. suggested.3–34.Asia. key.244 .61 ...satisfaction.. voice.measure.change.and.....and.change..initiatives.. data.and..and. important..142. work.268.measurement..297 Small.waste. outsourcing.296 Stakeholders..96 Solutions.complexity.methods.plan.. 160 Six.239–266 .. improving..analyze..280 ..a.16.changes. 255–257 ...business.and.89.gaps. general.requirements..improve. reducing.output.collection..41.295 ...241 .128.chains..11 Six.61..264 .incorporating.methods..improvements.Quality.control.implementing.Sigma.five-phase..the..analysis.258 .softwear.statistical..18–21 .51 Strategy.system.222 .questions.... key.296 mistake.System.system... .280 implementing.159 Stakeholder.measure.of.change.. Kaizen.and..261.. projects.159.business.methods.(huddles).(DMAIC). failure.and.61 .244 ..(KPOVs).change. 24 Six.analyze.224 ..meetings..controls.extensive.proposed. define. 177..and.and. measure. commitment.42.reduction.and.25..142 Statistical.analysis.111.61 ..5 . Companion.behaviors. Lean.10–16 .30...processes. building.155 Standardization. control.process. .and. how.solutions..example..for.case.281 ..variables.analysis.151.proofing.into.and.and..team.to.and.breakdowns. reinforcing.variables. 269 . data.92.168 .33 . define.229 Standard..sampling.effects. other..activities. follow-up.a.improvement..253 .process. supplier.projects..8..control).analysis. organizational.Sigma.project.of. ..improvement.change.and.9.. statistical..and.control.336  ◾  Index events..behaviors.data.178 .work. building.Sigma.295 Minitab®..and.152 Strategic.240.244 Statistical.Sigma..of.variables.205 .. 177 .242–243 .150.296 reinforcing.requiring..254 ..Sigma..92 SMED... important. control.244–253 Southeast.tools.for. key..26–32 ..and. Kaizen.281 .Lean.3–34 .new.three.Sigma.process.(FMEA).across. examples....methodologies.Sigma.and.30 .performance.and. overview.events. Kaizen.. key. measurement.reading..phases .35 .129 .methods.214.group.statistical.elements. methodology ..19 Spaghetti.Sigma.customer.characteristics.to.and.(KPIVs).“belt”..global.initiatives..22. organizational......and. components.240 methodologies.196.deployment.261–262 . projects..162 .239 . inventory... analyze.analysis.222 .system.tools... process.teams.tools.....263 . data.. tools. process.. .. softwear.122 process.

.equipment.System.complexity..92.waste.282 Top-down.63 .Need.. time..identifying.37 Total.38 United..and.230 Time. calculation—original..develop.137 Transfer.members. improvements.system.of.184.good.control.28 Trends..modified..prioritized.77 ... calculation.249 Unionized...and.obtaining.171..(VSM).Harvard Business Review article).series...preventive...117 Team.support.182 ..100 Unnecessary.and.for..management.92 v Value.145 .run..17.233 Unit..(IT)..114 . (TPM) Toyota..38 .10.rate..graph.98–99.117 Testing..and....work.Grow”.88.. constructing.Index  ◾  337 ...(COGS).278 .One..33 ..of.61 ..operations.scheduling.pull.8.batches.Parcel. process..105 .8..and.production.manufacturing. supply..strategies.availability. 92–93 ..and. key..expenses. process.state...preductive..(JIT).studies..States. price...128 Teams.to.73 .of..210 Supplier-input-process-output-customer. procedures....253 Trial.58.of..96..28.Production...93 . assigning.batches. see also.stream.236 Travel. developing.data.87.93 Total.. (SIPOC)..networks.services.systems.maintenance.(TPM)...157 Supplier.30.Service.flow.and.103 .time...movement.63 .77 Toyota.jobs..You.274 Transition.information...189 .4–7 Stratified.workflow..training.. “Preventive…Autonomous…Predictive”...92.workflows.69 u U-charts... summary...152 Summary.163 Supplies..12 Total. dysfunctional.just-in-time.Reichheld.standardized.76.. just-in-time.118 Supply..and..30 t Takt.performance...forming..environment. 60.initiatives..93 System...cells. utility. dysfunctional.map.202 .and.total.170–171... functionality.sampling. process.. calculation—future.materials.. process.63 Value...(JIT).work.164.37 .Kaizen?. value-added. 100 Toyota...95 ..and.several. of.(TPM).in.101 ..149–150 . analyze.210 .technology.117 .process..61 Unnecessary. “Lean”.process.is.....37 Team.77.breakdowns.163..expectations.85. (Frederick.74–75 .importance.motion.maintenance.maintenance.and.87 Transferring.... within. what.of.products..97 United. benefits..cost...211..or.concept.63 .chains.content.productive.77 System .workflows.127 .63 .59.reducing.37 System.eliminating. relative.136 .conducting..analysis.74 .Number.38 ..16.32 .75 U-shaped.63 .....31 Supplier. production. information...57.(SPM). global.(TPS)..chain.systems.67 “The.76 Training.new. predetermined.82 Time..sold..31.reducing.15.72. 210.

251 Visio®. process.. Lean.11 ..for..cause.for. collecting...63 .by.156 Waste..61 .115 Waste..receivable.in. elements.model.. example. .39...processes.71.153 . strategy.60 Work .process. voice...156 .pull. critical-to-delivery.environments.Sigma. ten.customer..the.events..117.the.37 Work...themes.rooms..280 .systems.26–27...79..new.workflows.84 .planning...process.customer.workflows.and.and.and..cells.of.safety.and.and.control.the..10 ..and.and.and.of.129 .30.63 .(VOC).38 .. Lean.accounts..of.106 .identification.event.operations. project.of..118.new.144 ..(CTS). process.30.242 .79 Visual. mistake.. .91 ..38 .workflows. reduce..(JIT).121 .changes. process....to...create.material.business.139 .major..106 ..analysis. process. critical-to-cost.212 .. quantification.. critical. 74 .and.system.(CTQ). visual.. understanding.systems. reasons.(VOB).100 Visual.and.70.207 .collection.145 .150 .144 .146 ..and.change.Sigma.product.supplier.proofing.(VOC).change.7 ..53 ...operation..and..of.the..of. . objectives..and.alignment.motion. Kaizen....83 Work.40 Wal-Mart...of.projects.themes..(VA).. balance.time.Sigma.system. process...unnecessary.153.253 ..182 . reinforcing.themes.job..127.information.222 creating..process.with..create.150.time.Six..26 .alignment.and.115.implementing.62..about.7. value.7.84 .338  ◾  Index brown-paper.and.space... implementing.. critical-to-quality.17 .. process.and..workflows.software. calculating.131.105 .7 building.61–63 W Waiting.and..and.195 Work.(CTC).73 ..time..and...workflows.89 .279 ...37 ...map..67 .35 Work.characterization.269 Work.and.154.basics.analysis.63 .202 ..37.. Kaizen. quantification.data..... common.145 Value-adding. example. Kaizen.of.setup.211 .74 .(JIT). Lean.63 ..146 building. three.129..stream.. 141–148.activities. workshop.exercise.21 .and.43 ..72. process.analyzing.analysis.Six.the..workflow..systems.process”..characterization.business.office..operations.164. Kaizen.. example.Six..280 Voice.of.71 .87 .27 .requirements. reducing...61.of.operations..to.95 War.and.129 ...complexity.163 . voice. translating. eliminating. alignment.steps.of.flow.27 . standardization. process.(VOC).U-shaped.44 .. process.eliminating.team.120. just-in-time. outsourcing.11.and.187 .63 . 120.basics.solutions..workflows.. standardization.. organizational.29..patterns. eliminating. example.a...176 .analysis..3 .multicultural. common..205 .. .and..279 . just-in-time. outsourcing. Lean. 32 Voice.76..development. strategy.and.(CTD)..122 .58 “Walk.implementing.of..duration.and. reduce.10 ..performance.setup.behaviors.280..281 ... Variation.(SMED)..21 .to.customer.shadowing.of..70–73 data.of. pictures.operations.environments. Kaizen.and.(SMED).(VSM)...mapping–SIPOC.unnecessary.63.controls.. prioritizing.case.31. activities.systems..themes.135..and.90 .

104.119 ...31.stations...43 Work-in-process...(WM).76 X X-bar.277.173.251 z Zip. reducing.chart...management.166 ...systems. 105.inventory... Internet-based. internal. overloaded.84 Workflow.120.(WIP).Index  ◾  339 Work...60.104 Workflows.285 .247.....278 .codes.66 .

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