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

3

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

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

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

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

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

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

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

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

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

7.workflow. value.value.how. Implement JIT 6. Comparison to process performance.needs.. be. Develop Supplier Networks 7. Identification of performance gaps.similar.cost.. using.time.. reports. process. Implement Visual Controls and Pull Systems 4. Customer demographics and distribution channel. table 1...Kaizen. operational. Create Value Stream Maps Figure 1. Eliminate Unnecessary Operations 5. directly. These.1. from.are.and. Reduce Product and Process Complexity 3.major.or. the.Table.analyzed.7.7 translating the voice of the Customer (voC) 1. 2.being. p . performance. comparisons. Translation of CTQs into specifications (Ys). Implement Performance Measurements 8. Understand VOC 10. collected. rocess. Market segmentation. Market research.shows. or. made.3 ten important elements of a lean system. Continuously Update Process Technologies 2.by.. (VSMs).themes. Deploy Lean Six Sigma Teams 9.translated. with..specifications. 6.internal.Ys..team. 4.or.then.(CTQ).successively.to.characteristics. data.quantified.the.into.expectations. 8.Strategy Alignment  ◾  27 1. will.critical-to-quality. . 3. Development of projects to close performance gaps. 5. maps. characteristics.into.customer.quality. and. Customer themes or critical-to-quality (CTQs) characteristics. current..related. stream.

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

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

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

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

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work.the.expense.statement.project’s. 50. Facility overtime expense for work area A represented 50% of the total facility operating expense across all four work areas ($500.across.total. event.as: Operating.$1.period. Kaizen.that.or...executed.annualized.expenses.000).Sigma.Setup.represents.Lean.50. roject.charter.. availability.over.executed.expense.Six.000).20.work.XYZ.facility. XYZ.availability.for.000.machine.to.percent.year. within.days.a.A.overtime.analysis.objective. focused.1 project identification—breaking down high-leel goals.facility.are.projects.The..XYZ.facility.several.an.typically.the.project.percent.over.expense.represent.000.setup.fiscal. this.000. within.Kaizen.a. by.for. work.opportunity.be. week.area.operating. A.December..000. machine.a.project.save..may.A.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 .the.expense. of.the.or..$200.10.31.smaller.project’s.000.facility..Facility.Six.of. and. area. Project Objective: Reduce setup time by 50% within one week using a Kaizen event focused within work area A.percent.issues.or.is.000 for fiscal year ending December 31.are.time.all.50.000.percent.Sigma.Lean.can.four.. areas. using. ending.total.of. .be.represented.percent.represented. a.operating. in.of.for.to. ($500.area. (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.. with. Setup time issues represented 50% of the machine availability incidents or 10% of the total XYZ facility operating expense.or.time.for. Problems with machine available in work area A represented 20% of the total XYZ facility expense or $200. one.42  ◾  Lean Six Sigma for the Office Facility XYZ Reduce Operating Expense $1.might.the.total.longer.time.000.of.A.operating.reduce.written. Figure 2..$50. p . Problems.this.incidents. work.in.point.this.problem.

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

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

functions. and. .industry.project.functions.organizations..have.. operations.benefits.how.organizations.institutions.even.of.These.marketing..2. S .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.there.2.also..Chapter.sales. human.industry.function.functions.shown.to.major.and.and. functions.several.these.In.specific.of.compliance..types.several.effectiveness.finance.as.2.by.retail.efficiencies.Figure. ubsequent..well.created.process.the.common.well.These.. within.or.provide.3.calculate.include..include.be.shown. procurement. specific.will.2 project identification—process analysis.and.of...others.may. types.design..associated.hospitals.discussed...will..improvement.metrics. Projects.organizational.industry. improve.business.as.governments.in..in.within.examples. to.are. financial.within.to.projects.2.Lean.industry.Lean..in. these. provide...Lean.are.. resources.Table.2...that.with.these.to.examples.chapters.Figure.to.are.These.projects.. typical project examples The.manufacturing.rules..diverse.by.institutions. service.detail. organizations.routinely.organizations.The.in.usually.within.themes.shows.metrics..regularity.2.as..as.educational.an.other.vary.rework.organization.an.product..analyze. disparate.for..an.vary.metrics.

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

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

there.be.organization.increase.a.other.reduce.customer.improvements.operational.It.is.always.inventory.reduce.product.U.asset.this.higher-level.required. units.and.is. that.as.different. metric.. appropriate.that.yield....investment.As.Another.This.lead..the.by.and.efficiency..common. Financial..they. for. rates.sizes..revenue.lot.In.metric.of.of.translated.a. include.utilization.workflow..facility.in.to. may. ratio.administrative.are.may. reduce. compensating.small.such. .form. contains.metrics.usually.also.business.has. warranty. its.measured.useful.impacted.improvement.correlated...can.or.of.from.projects.production. by.very.that.by.include.level.to.higher-level.This.an.metric..ensure.sight.organization.in.is.total.percentages.. are.the.warranty.improvement.this.to.is. asset.the.project..a.all.a.a. monetary.. ratios.this.lot.resources.it.and.measuring..to.in.a..and. their..root.should.In.provide.line.business.is.and.in...lead.change.process.48  ◾  Lean Six Sigma for the Office v .may. olume.allowances. metric.financial.a.efficiencies.required..also. category.metrics.in. expense. product’s.and.or. it.why.adjustments.to..flow.be.monetary. units.percentage.dollars.easily.are.performance..as.an.delivery.a.often.However..an.. can.item’s.example.force.context.financial.metrics.In.project.equipment.is.project.. of.. relative..at.or.financial. examples. utilization.causes.demand.or.units.such.can.a.financial.expense.process. as.is. a.includes.size. metrics. that.gross.projects.is.inventory..facility.calculated.service.that.turns.S.metrics.product’s.lead.deployed. reducing. to.be.the. monetary. Project. basis. cost.Revenue.time.projects. to..an.general.operational.improve.total.lead.improvement.production.a.initial.improvement.a.for..increasing.Also.workflow.(COGS).improved.turns.In.fourth.an.metrics.be.As.aggregated.example.inventory.their.volumes.its.less.to.sales.percentages.inventory. business.allocated.is.overall.inventory.expenses.However.projects..relative. reductions.clearly.to. inventory.a. A..ratio.metric.A.metric..clear..lost.metric.been.metrics..size.variation.financial..to.prioritization.time.an.ratio.must.a. Project.and.operational.business.its. a.and.A.investment.ratio.improvements. the.margin.level..problems.project’s.interest.ratio.investment.levels.are.recall.example...are.of.However. linked....justification.These.a.business.is..metrics.is.These. average.When.the.a.for.lot.prioritized..product.then.causes.through.project.turns.constant.important.and.or.but.a.revenues.percentage. lower-level.the. described.this.upward.GOGS.to.are.time.throughout.warranty.project..level. its.metrics.root. reductions.at.to.an.COGS. examples.supplier.its.which. cost.flows.using. Compensating. be..are.monetary.be.quality.both.in..percentages.of.issues. metrics.that.cash.often..high.cost.down.time. metric.improving.Cash. has..be.across. business.eliminated.direct.a..support. inventory.in.financial.and.. or.way. turns. sold..may. used.and..warranty.decreasing. commonly.linkage.lower-level.example.important.as.also.may.a.metric. to.maintained.unit.. benefits.expenses.is..metrics.by.expense....that. goods..of.and. category.an.linearly.and.to.adjustments.Business.is.both.time.numbers..financial.metrics..metric.utilization.used.example.absolute. in.divided.performance. discounted.better.is.the.This.impacted.expense.is. by. inventory.turns.include.example. is.required. Additional.calculated.absolute. and.project.why.process.as.are.known. of..metric.metric. service.if.revenue.expenses.focused. organizational.of. investment.poor.and.process.also.of. inventory.revenue.a. warranty.have. increase..second.

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

simple..of.Project. from.shows.organization.the.ROI.implementation.31.deployment.the.3.example.projects.is.receivable.be.The.support.50  ◾  Lean Six Sigma for the Office project Charter example Project.contains. financial. information.must.deployment.execution.will.administrative.as. they.because.of.project.a.. rigorously.an. an. the.and.false. very.construct. footing.rigorous.be. may.executed. in.contain.and.on.proportion.by. and.is.2.well-written.The.charters.organizational. to..a.a.improvement.In.of.the.The.days. not.information.historical. project.3.also.calculate.amount. obtain.number.must..linked..place.a.the. In. define.to.members.execution..with.receivable.that.must.because.rate.. they.expense.provided. this.of.that. organization. scheduled.start. The.a.be.be.organization.a. and. to.in.as. formed.the.amount.percent.a.also. process.calculations. a.of.information.2.for. problem.including. charters.a. a.of.When. identified.an.also.project. fully.will.well.extent.communication.their.it.charters. It. that.savings. will.delay.3. and.. and.Excel-based. owner.cycle.receivable. are.the.analysis.the.vehicle.operational.to.should.accounts. the.level.reduction.benefits.required. several..to. in.borrow.collection. formats.costs. information.would.of.its. enable. project.project. local.the.contains.stakeholders.. operational.the.time.charter.team’s.and. and.to.well-supported.with.costs.its.This.in.10.that.significant.financial..projected.charter.its.a.time.to. is.its. if.and.project.that.days. workflow.a.a.both.describes.between. that.verified.This.analysis.from. especially.several. supporting.and.advance.the.from.Six.activities. it. eliminate.savings.of.and. well-written. accounts. a. detailed.. to.expected.charter.describes.shows.useful.as.analyzed.This.. they.describes.net.also.payback. and. a.write-offs.project.calculation. do.well..that.project.important.just.noted.interest.be.well-quantified.vehicle..viewpoints.subtracting.if.project.detailed.organized.days. managers.an.problem.rate.by. insist.specific. a.the.assumed.where. necessary. on.from.financial. and. while. for.project.enables.a.average. in.team.are.detail. a .charter.an.shown..the.necessary.to. serious. provide.benefits.matter. and. in. within.its. necessary.be.expected.reductions.interest. is. A..have. prioritize. context. project. operational.benefit..it.receivable. make..information.a.contains.number..most.accounts. mistake.charters. provide. that.. exist.project.a.all. important..reduce.team.the. consultants.project.and.is.project.the.saved.period.a..deployed.in.a.the.project.operational.of.a.the.It.also.versions. not.very.as.of.a.frequency.team’s.summary.process.adjusted. The..resources. charter.benefits. organizations.charter.shows.is.to.example..impact.In. versus.used. their. process.a.this.a. be.a. project.an.is.receivable.. or.execute.project’s..be.operational.2. firm.project.then.In. relatively..is.that. to.and.of. will. team.of.financial. nalysis.financial. do.a.reduced.to.analysis.communication.will.key.net.words.project.be. time.possible..the.of.projects.are.. be. to.project..against. information. charters. in.other.information.business.Figure. that. deploy.is.. Kaizen.because. 60.Lean. Some.occur.Figure.Figure.Sigma. an.expected. ..from.. others.

to. productivity.common.an.in.4.and. over.above.Figure.identifying.minimum.that.been.are. $10 million between 61 and 90 days and $5 Million over 90 days..prior. also.performance.obtained.strategic.prioritize.strategic. prioritizing projects Prioritization.several.expenditure.deployment.to.of.000 $ 5.organization’s.643 $ 61.6 K ($15 MM) *(15 Days/365 Days)*10% = $61.6 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.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.are.projects.be. To reduce the accounts receivable cycle time by 50% in the 31– 60 (15 days) to save $61.gaps.identified.objectives.of.already.643 $ 56.resource.3 project charter example.to.strategies.projects.include.their. important.and.that..close.643 Comments Team Information Team Leader: Team Members: Name Role Expertise % Time Figure 2.Some.to.performance.can.are.with.through.gaps.There.These. improvements.analysis. most. that. 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).. projects. e result is lost interest expense from money that should be collected no later than 30 days from invoicing.an.the.000 $ 56.643 $ 5. of.shown.2.goals. e average A/R balance is $15 million between 31 and 60 days.. .used. ensure. is.have.

The.the.an. Regulatory Issues Figure 2.and.example.and.4 prioritizing projects.statements.line. these.describe.common.an..activities. reductions.this.that. hand. assets.52  ◾  Lean Six Sigma for the Office Project Risk Level Medium Medium Medium High High High Narrow Low Medium Resource Requirements High Project Scope Broad • Just-Do-It Projects • Kaizen Events • Lean Projects • Six Sigma Projects • Design Projects • Capital Projects Low Low Low Project Identification 1. their.a.interviews.expenses.In.liability. In.category.liabilities.gaps..to. receivable. analysis.with.A. objectives.analyses.also.analysis. teams.conducted.includes. .may.of.including.financial.project.to.and.because.can..and. financial.of.in.sheet..organization’s.context.targets.balance.balance.include. capital.free. cash. A.always.6.is.comparing.ratios. strategic.already.utilization.organization’s.Any.goals.analysis.improve.or. on.identify.groups.and.. an.revenues.be.review.equipment. also.may.charters.similar.is. Longer-term. organization’s.performance.be. activities.pay. executives.help..similar. an..A..is. goals.to.usually.accounts.and.of.loans.them.and.assets.identified.receivable.is.between. include.the.Examples. fixed.useful.profit-and-loss.organization.asset.objectives.a.projects..and.other.benchmark.either.snapshot.cycle.an.series.2.invested..As..information.in. differences.ideas.not.facilities. Health & Safety 8. include. as...several.typical.relationships.project...a. Operational Analysis 5.in.of.Shorter-term. workshops.in. accounts. of.In.up.aligned.assets.includes.between. and.second.may.projects.are.of.expenditure.that.revenue..asset.future.objectives.creating.to..payable.ratios..levels. P/L.balance. source.product.at.facility..and.meet.be. discuss.and.and.useful.project.sheet.levels. well.method.balance...obligated.can.accounts.time. include.include. Project. by.a.sheet.at.asset. as.5.a. goals.accounts.projects.identification. Benchmarking 6.an..and.An. (P/L).. financial.equity.balance. payable.2.identification.these.sheet.analyzing.P/L.utilization.large. their.statements. should. Strategic Gaps 2.will.it..Figures.. and.land.sheets. a.organization’s.executive. Financial Analysis 3..and.directly. or.Financial.shown.identified.a.on.shareholder’s..

how.their.projects. using.5. and. performance.other.is.VSM..useful.The.5 generic financial statements—profit-and-loss statement.major. not.of. that. greatly.can.against.Chapters.a. Benchmarking.improvement. current.2. that..to.3. process.health.or.to.including.it.to..walk-throughs..our.will..and.is.a.and.metrics. compare.projects.evaluated.be.execution.trends.poor.4% Figure 2.ideas.of.as. of.On.performance.adherence. projects.or. provides. that. activities.always.tools.analysis. projects. it. stream.review.hand. process.a.. General and Administrative Operating Expenses Depreciation Interest Total Expenses Income Before Taxes (30%) Taxes (30%) Net Income Shareholder Return on Equity Current Year Previous Year $100 $20 $120 $90 $10 $100 $5 $20 $70 $10 $5 $110 $10 $3 $7 8% $5 $18 $60 $8 $4 $95 $5 1..Comparisons.methods. In.This. found.verify.a..always..verified.. using.good.for. The.Figure..identify.source. In.of. advantage.4.operations.Benchmarking.standards. simplification.show.. is. used.this.operational.information.either..an. (VSM).the.includes. analysis.contained.major.a. is. An.VSM. is.improvement. also. identify. operational.those. financially.target.process.used.they. must.related. of.benefit.different.of.and.team’s. .of. a.project.this.exhibit.discussed. in. commonly..require.especially.estimates.toolsets. standardization..between.Lean.method.of.time.organization..example. systems.identifying.or.may.of.focus.variation. particularly. operational.discussion. However.tools.listing.improvement.is.similar.it. would.be.a.be.workflows.source..regulatory. mapping.process.in.book.is.Figure.to. identification. mapping.of.Continuing. issues. regard.against.statements.true.may.reports.another.when.are. identified.in.useful. VSM. benefit.that.to.similar.a.teams.will. projects.an.to. constructing.financial. projects. project.initial.serve.initiatives. using.useful. an.of.Finally. over. value.of.5% 3.any.. method.Project Identification  ◾  53 Profit and Loss (P/L) (Millions) Revenues Net Sales Other Income (Net) Total Revenues Expenses Cost of Sales Selling.requiring.performance.Another.complicated.projects. in.will. is. useful.safety.4.As.the.2. information.. also. be.operational.is.center. project. from.financial.5% 4.and.methods.and.and.performance. an.organizations. organization’s.an.to.in. to....in.good.types.

analysis. project.this. vehicle..projects. data. completely. implement. more.specific.can.the.the.. roduct. a.an.and. These. known. likely. that..In. situations. In.process. use. perhaps. require.be..team.over. a.required.. analysis.correct. then.service..or..extended.context.. most.Sigma. In.analyses.set.problem. eliminated.. their.of. other.example.assigning. require.assigned. prioritized. have.may. to. a..problem.that.a. and.could.root.before.and.in. context. would. Finally.a.levels. Six. team. simple. this.54  ◾  Lean Six Sigma for the Office Balance Sheet (Millions) Current Assets Cash Temporary Cash Investment Notes and Accounts Receive Inventories at Average Cost Total Current Assets Fixed Assets Buildings Land Vehicles Equipment Total Fixed Assets Total Assets Liabilities and Shareholders’ Equity Current Liabilities Notes payable Accounts payable Total Current Liabilities Long-term Liabilities Long-term debt Total Long-term Debt Total Liabilities Shareholder's Equity Current Year Previous Year $20 $10 $50 $60 $140 $15 $6 $40 $70 $131 $10 $15 $5 $25 $55 $195 $12 $14 $6 $30 $62 $193 $10 $20 $30 $12 $22 $34 $80 $80 $110 $85 $80 $80 $114 $79 Figure 2.and.resource.identified.identify.projects.Kaizen.projects.to. be..4.process. also. shows. and.could.causes..teams.easily.to.toolset. and.. may. benefit.Other. methods. an.6 generic financial statements—balance sheet.improvements.several. p . of. collection. scope.is.solution. known.eliminate. also. root. charter. the. from.capital.redesign.expenditures. also. problems.projects.. As.process.touch.be.a.for..of. according. cause.or. should. tools. .an. process.days. could. solutions. improvement. Figure.requirements. solution. be.improvement. projects.problem. useful.if. is. immediately.risk.and.to. extensive. activities. the.2.

.been.to. well.impact.Six.element. to.also.of.charter.identify.showed.way. prioritize.and.”.and.book. Project.than. that..types.The.. be. at.charter.be.Figure.the.aligned.a.converted. measure.or..levels.elimination.Figure.and.Lean. operational.gaps.it. a.. .organization.Lean.improvement. having.deployment.with.Sigma.of.of.are. and.are.function.CTQ.by. be.performance.continuous.cost.an.on.important.As.of.a. characterized.project. a.These.stakeholders.and.are.assessment.an.time.for..and.as.as.goals. bringing.2.and.to. analysis.high-level...organization.this.actionable. mentioned.can.analysis.low.Six.as.how.Prioritization.an.Lean. improvement.well.financial.in.through.different.as.financial.used.available.an.broken. from.their.Lean.and. related.business.Sigma.projects.A.be. Lean.define. to.can.1.aspect.a. process.prioritized. organizational...are.requirements.2.4.may.flow.continuing.teams. projects.that.process. It.can.a. financial.and.to.down. operational.using.is.into. identify.important.is..by.key.project.be. Six.deployed.In.a.specific.functions.is.of.of..Kaizen.(CTQ).its.is.organization’s.incorporated. used.events. execution. value.process.. lower. goals.competitive.useful.an. can.the..metric.other.quantified.charters.resource.improvement.that. communication.identify.Sigma.Lean.people. was. the.higher.operational.a.that.these.reports.may.several. Figure. and.or.execute. conducted.prioritization.of.anticipated. of.addition.additional.projects.will.the. requires.and.root..visualize.of. of.an.and. are.will.performance.cycle.eliminate.down. of.of.be.its.problem.an.considerations.improvement.and.ensure. Summary Improving.as. operational.context..showed. be.analysis.prioritization.and.process..A. well.that.organization.of. also. information. lower.out. process.This.Lean.depending..actionable.deployment.a.the.benefits.shown.various.process. benefits.In.times..within.ensure.the.A.our.the.selection. assignment.teams. describe. metrics.levels.2.resources.methods. high.their. Lean.may.not.projects.strategy.project.was.this. performance.system. content.are.into. industry.responsibilities.as.be.project. expected.important.there.Sigma..into. toolsets.result.higher.an.analysis.and.workflows.charters.the.is.resources. An.by.vehicle.Six.operational. chapters. projects.quality.and.the.goals.a.deployments. create..projects.as. used. of. project.is.of.the.risks.projects.other.critical-to-quality. can.identified.together. workflows.shows. several. used.also..characterized.flow.to.metrics. to. can.an.that.operational.to.focus.alignment.discussion.have.that. a.of.accomplished.causes. and.In.its. Metrics.be.project. also.to.is.in.we.then. projects.either.of.project.vary.organization’s.waste.to.charters.at.objectives.and.. performance.projects. Assessments.organizational.have.Six.to.factors. by.in.down.workflows. Sigma.correct.next.rapid.. and.forms.contrast.into.the. systems.to.objectives.many.. because.systems.Project Identification  ◾  55 several.projects.Roles.organizational.are.an.the. “leaned.of.using.of.important.in.this. several.4.key.identify.project’s.

Business.56  ◾  Lean Six Sigma for the Office Suggested reading J.Vol.. James.Project management maturity model. Parviz..Wiley.Kent.2nd.New.J. Practices.8. Hans..Ginger..York:..Engineering..in. York:.and.and.for.Management...Kerzner...New. W.Auerbach.York:.Center.Research and development project selection. Martin.Crawford.Wiley.. James.The selection process for capital projects..Rad.New.2005.. and controlling.York:..ed..and... McGraw-Hill.Project management: A systems approach to planning.Technology... 2007.2007.Operational excellence—Using Lean Six Sigma to translate customer value through global supply chains.York:.Technology.Publishing..2008..Wiley.1993. scheduling. Lean Six Sigma for supply chain management. . Harold.Martin...2006.F....Donald.Auerbach...York:..Martino..New. Joseph.York:.Project portfolio management tools and techniques.and.Series.Engineering..N. New.1995.Merino.Wiley.W....Lang.9th.New.IIL.Wiley. New.ed.Levin.Series.Management.P.in. Series..

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

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

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

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

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

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

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

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

and merging components into composite units. Create robust product and process designs to reduce Complexity Concept 1. Use features that enable snap-fit of components. need using the correct technology. such as failure mode and effects analysis (FMEA) and simulations. Don’t do things that will not add value or be profitable. 2. 4. Simplify what is left by using fewer components. continued . Use design for manufacturing (DFM) methods simplify products and their processes. Use asymmetrical 3. Use self-checking logic to prevent service errors or detect them as soon as their occur. models. can be assembled in just one way. Classic Manufacturing Service Analogy Produce profitable Produce the correct products that services and customers need using information customers the correct technology. Design so the product does not require tools or. Test new service systems under controlled market research conditions. Example: Self-service systems such as airport check-in. prototypes. only simple tools. Example: Only allow certain product configurations. Be effective. to manufacturing. simulations and other methods to understand its performance prior to commercialization.Lean Six Sigma Basics  ◾  65 table 3. Ensure it is the right thing to do. standardized components. Create procedures using visual systems so anyone can do the work. 5.2 2. Use design for Six Sigma (DFSS) and Lean methods to simplify systems and their process workflows. Methodically evaluate Fully test new product the product using designs prior to design for Six Sigma releasing them (DFSS). if necessary. Use proven tools and methods. pilots. Design so the product can only be design features to assembled one way to ensure components avoid errors.

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

monitor.another.important.chapters.improving.that.result.be.has.services.through.a..current. prototypes.discussion.of. tactical. deploy lean Six Sigma teams In.simulations.several.metrics.fifth.improvement.procedures. component.and.will.In. done. components.been.similar.important.are. support.In.made. in.or..process..to.kiosk.anyone.Sigma.how.in.analogous.be.if.the.it..they.analyzing.a.service.in.does.zip.an.aligned. However.of..performance.product. by.concept.sixth.needs.creating.assembled.this.An.workflows.their..its.within.using.use.front.can.but.points.resides.tasks.One.. These.of.product.analyze.process.is...service.properly.easily.easily.Lean Six Sigma Basics  ◾  67 or.performance. projects.context.processes.should.deliver.performance.strategically.proofing.. A.a.way.key.benefits..this. sponsoring.products. errors.complex.at. using.fully..would.is.Lean.the.use.and.In.discussion. information.prioritized.have. of.our. and.Lean.of. a.system.the. to.the.conducting.deployed.evaluations.and.some.manner.to.that.common.testing. or.through. tools.Continual.a. that.easy-to-understand.nonaligned.or.or.products.designing.systems.In.final.important.to.all.is.performance..and.to.in. example.to.an.can.help.be. and. that.Six.in.concept.business.and. include.Methodically.visual..selecting.that.also.been. level.the.verify..methods.is. people.a. tools.options.which.in. A.manage.airport.example.their.to.seat.to.or.ensure. service. certain.summary.As.new. just.baggage.check-in. or.enable.up.we. Mistake..prior.service.In.deployments.only.of.testing..release.check-in. the.and.configured. at.is.improvement.robust.a.models.service.without.their.products.VOC.assignments.made.service..at.chapters.complete.book.of.design.often.teams.or.deployment.flight.a.customer. designs.do.are.can.very. The.a.and.teams. conditions.activities.this.bottom.in.many.himself. DFSS.this.the.Six.Sigma. level.projects.will.local.product.accuracy..aligned. and.to..fully.may.a.is.be.to. running.system..their.up..show.key.Sigma. to.or.identify..concept.in.actual.organization.it.transaction. organization. to. avoid.building.This.Lean.not.commercialization. and.such.and.his.a.as. key. ways.commonly.process.them..deployed.should.an..discussed.fourth...to.that.customer..or.This. an.be.are.over.the. Unfortunately.work.time.environments. way.product.important.self-service.be.together.operations.failed.test.of. is.designing.improvement.to.are.a..measurements.can.that.A.process.teams.is.a.key.their.advocates.to.state.an.evaluation.in.use.code.external.in.new.her.prevent.In. .cross-verify.reason.to.a.improvements.product. only.concept.service.be.office.failure. methods.anticipated. building.detect.optimize..very.is.they.deployed.used.possible.new.application.imply.for.more. address.performance.is.in....a.services.it.deployment..check..not.prior.snap-fit. focus.to.its.the. organization.process.previous.designs.improvements.Six.market.have.or.pilot.these.to.significant. product.with.by.under.used.anyone. a.times.occur. sponsored.example.not.performance.in.by.using.to.usage. incompatibilities.relevant. continually..or.widespread.. few.and.to.be.is.prior.improvement.an.herself.and.will.not.production.following.improve.aligned..across..as.

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

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

and.actually.production.using.revenue.in.and.. On-Time Supplier Delivery 5.and. Setup Time (Minutes) 8.they.how..high.4..deployment. Material Availability 12. create.also. Forecast Accuracy 6.necessary.metrics.space.as.In.Step.important. cash. Number of Customer Complaints D.a.bring. people.over.flow.Allocated. a. shown.operates.as.have. Creating.metrics.Sigma. a. Scrap% 4. to.related.these.both.Lean.we.analyze.performance.share.of.It.day.measure.a. brought. identify.Figure.it.VSM.customer. Excess & Inventory Figure 3. First Pass Yield (Rolled Throughput Yield-RTY) 2.other.out.well.of. Data Accuracy 11.together.their. 9.discussions..in. 8.in.The. Number Employee Suggestions E.representation. Profit/Loss 3..create.multitude.to.those.and.manufacturing. VSM.metrics.sequence. Rework % 5.in.include.Six.3.by.metrics. requires.expenses.4.time. that.describe.process.and.VSM. Week 4 Week 5 Week 7 Week 2 Week 3 Week 6 Week 9 Week 8 Average .process.reason.financial. Inventory (Units in Queue) 9.and..they.the.to.operations. understanding.an.a.at.and. Value Adding % 2.4 4.will.is.for.operational. together.is.75 50 ####### 420 Date: July Auditor: Joe Takt Time: 8.similar. Total Process Workflow Cycle Time B.of. be.the.relevant. Schedule Changes 9.people.such.a..service.. Create performance measurements.Figure.we... Create value Stream maps (vSms) A.4.of.operation .. Overdue Backlogs 10..the.process.on. Unplanned Orders 8.mentioned.is. nine.metrics.track.any.measurements. graphical..their.Lean..of.but.important.an.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. Lead Time 7.a. as..VSM. Number of Problem Solving Teams C.related.are.nine.creates.shown.level.in.repurchase.metrics.Sigma..that.least.our.is.services Organizations.be. Returned Goods Expense/Incidents G. Percentage Scheduled Jobs Missed Additional Metrics (Depending on Industry or Function) 1.4 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.applicable.at.operation.team.initiative.floor.performance.to.industries.projects.correct.quantified.required.well.a.a. initial.created.activities.The.discussed.will.Inventory.team.market.4. Floor Area Additional Metrics (Depending on Industry or Function) A. to.intent.define.that..After.to.their.of.in.operational.as. Capacity (Units/Shift) 7.as.above.3.are.. Downtime % 6.to.investment.as.focus..day.operation. Annualized Savings H.gaps.Six. Warranty Expense/Incidents F..through.improve.and. Production Rate (Units/Shift) 3. workflow.these.products. Inventory Efficiency (Turns) 4.. .Chapter. close.

immediate.are.same. deviations.eliminated.or.together.the.goal.operation.operations.cycle.example.part.a.The.is.for. cycle.customer.part.operation. s .These.the. its.a.operations. value.as.at.60.team’s.of.this.this.the.. 2 NVA Form A Form B Report C Form D Report E Form F Figure 3. process.If.VA.a. expectations. will.analyze.with. as.and. the.to. improvements.first.operations. the.quantify.operations.operations.of. operations. 12 BVA F 48.(symmetrical).must.will. throughput.identified.relationships.mean.and.controls.and. to.required.team.workflow.. as.path.an. 10 VA C 24.examples.deviation.Six.to.each.its.3.number.. 3 VA A 60.second.measured.a.and. ystem. NVA.that.a.within.help.can.operation.longest..VSM.be.standardize.addition.. help.constraints.remain. operations.of.are..the.. not.VA. needed.describes..and.map.to.assumed. standard.as.Recall.team’s.BVA.of.reducing.VSM.will.5.the.workflow.workflow. various. of.critical.to.shown.the..Figure. between..process. 24 BVA G6.cycle..of..goal.other.VSM.expectations.has.an. the.process.process. as.and.identifies..that.a.Figure.to.Lean. reduce.improvement.an.3.process.diverse.VSM.process. NVA.standard.together.mean.improvement.been.cycle.are. average..cycle..of.path.VA.book. 6 NVA D2 16.represents.high-performance.represents.time. distributed. cycle.meet.required. needs.goal. 5 VA B 30.a.generic.BVA.a.seconds.In.A.5.a.operation.improvement. operational.. and. Figure.of.In.time. are.the.time. bringing.major.3.times.. and.. in.a.times.A. time.activities.NVA.is.. meet..second.proof.simplification.be.example.identify.remaining. VSM.Lean Six Sigma Basics  ◾  71 D1 8.contained.work.5.are. and..all..a..the.BVA. customer.but.team. of.of.critical.5 5.other.time.though. As.all.version.identify. cycle.process. the..type. 4 NVA E 24.or.A.in.shows.is.cycle.a.and.deviation.mistake.Sigma.the.to..technological.time.due.labeled.in.process.brings.In.have. Create alue stream maps (vSms) of major workflows..NVA.As. of.number..help. well.operations.system’s.of. operations.management..opportunities.eliminate. .the.5.The.the.to. standard.seconds..spatial.not.normally. building.

3 VA Operation A B C D2 E F G Total: Expected 60 30 24 16 24 48 6 208 Standard Deviation 5 10 6 4 12 24 2 Variance 25 100 36 16 144 576 4 901 266.forms.An.VSM.manner.creating..that.financial.produce.or.time.performance.6.well.improvement.a.should..the.the. 24 BVA Process Output Boundary G6.cycle.operational.These..process.the.of.process.also.representation.potential.a..a. 5 VA B 30. 6 NVA D2 16.to.6. shown.3.are.entry.shown... process.factors.visual.part.that.workflow. also. their..the.information.and.with.and.complexity.to.record.current.83 A B Operation Expected 60 30 8 98 Standard Deviation 5 10 3 Variance 25 100 9 134 120. 10 VA C 24.the. in.addition.average.and.this.projects.shown.related.. 12 BVA F 48.in.to.process.starburst.also.of.using..one.be..of.in. .a.forms.69 –53% D1 Total: 95% CI of Cycle Time: Average % Improvement: 95% CI of Cycle Time: Figure 3.is.and.unit.process.starbursts.and.Sigma.8.6 takt time calculation.highlighted.VSM.to.VSM..contributing.the. information.of.Figure. report.3.to.analyze.advantage.In.process.total.used.process.It.entry.material.VSM.data.VSM.show.the.breakdowns.a..they.Figures.data.These..frequency. 3 VA A 60.a.Figure.of.information.and. As.in.is.time. 10 VA D1 8.that.operational.seen.on...Six..as.clearly.forms.represents.several.workflow.5.72  ◾  Lean Six Sigma for the Office Process Input Boundary Generic Process Workflow–Current State D1 8.as.the.shown..starbursts.time.including. 5 VA B 30. as.describing.3. 2 NVA Generic Process Workflow–Ideal State A 60.is. reports.other.reports..can.system’s.. 4 NVA E 24.reports. Lean.3.quantification.breakdowns.maps. similar.estimated.occurrence.quantified.be.Figure.of.takt.the.3.in.context..metrics..are.In.summarizes.various.information. information.5.its.

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

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

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

.be.activated.either.where.needed. called.subordinated.the.As.improvements. times.to.required.rate.increasing.elsewhere.operation.production.an.Put.bottleneck’s..system.bottleneck.process.improvements.increase.operations.a.should.operations.the.its..the.concept.way.system.added.a.As. bottleneck’s..provide..bottleneck.work.to.to.not.of.multiple..demand.support.all.support.the.a.increase.process.over.must.takt.required.bottleneck.time.In.could..on. at. the.second.is.In.comment.as.takt.activation.its.scenario.However.bottleneck.are.. Figure.bottleneck.applies.scenario.system.be.rates.to.workers.cannot...1 Bottleneck management.through.. constrained.an.operation. cannot.are.maintain. operation.system’s.first.meet.enable. other.utilized.capacity..be.situations.other.their.d.by.feeds. In.be.focus..and. bottleneck’s.or.used.and.within. overall.utilized. may.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.nonbottleneck.the.its..demand.they.the.reversed. capacity.time.or.several.a.14 7..a.resources. operation.utilized.the.flow.can.on.the.be..increasing.how. a.to.of.operation..As.strategies.its.they.strategies...important..level.bottleneck.shifts. a.a.required. become.bottleneck.bottleneck.the.periodically.shows.to.a.the.a.a.because.only.must.have.is...to.additional..does.organizations.example.bottleneck. other.determined..meet.meet.demand.when.a.activated. uninterrupted.not.In. operations.Another.takt.rate.result. be.another.to.capacity.words. office.then.meet.could.14.3..throughput.be.environment.should.sequence.final.idle.to..time.system’s.sufficient.of.an.or.if.developed.operation.production.a.first.of.capacity.that..capacity. resources.scenario.meet.equipment.to.exceed.if.utilized.the.rate. to.bottleneck.concept.their.In.

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

d.2 transfer batches.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 3.15 7. .

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

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

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

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

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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have.with. the.vary. moving.than..they..these. system’s.Although.often.when.people.become. expensive. In.at..use.several.none.the.to. transformed.will.less.. systems.information.Although.machines. implement pull systems in offices using isual controls and Kanban.replace.balance. materials.It. because.sophistication.Simpler. into. extensive.resources. be.organizations. technology.Lean Six Sigma Basics  ◾  103 Work Station A = 36 Seconds Per Work Unit 1 Container Every 12 Minutes (20 Work Units) • Demand = 800 Units Per Shift • 100 Units Per Hour • Container Size = 20 Units • 5 Containers Per Hour Work Station B = 36 Seconds Per Work Unit 1 Container Every 12 Minutes (20 Work Units) Work Station C = 36 Seconds Per Work Unit 1 Container Every 12 Minutes (20 Work Units) Figure 3.machines. This. simple.automation.than.prior. our.the.from. information. is.the.environments..task.difficult. and.may..contrast.to..also.common.office.the.50.maintain.are.of.mid-1990. environments.may. less.In.complex..of.other.than.. .more.are.bottlenecks.of.of.are.use.familiar.begin.efficient.became.tasks.. meet.widespread.levels.utilize.degree.discuss. world.several. continuously. to.work. systems.technology. around.around.In.their.21 9. global.manual. office.will.rates.for. have. time..evolution. easier.discussion.Also.machines. (IT).work. takt.if. the.major. lower.productive.many.the. costly.complex.we.systems.to.the. information.work.very..systems. a.this.practices.maintain.reliable.and.and.to.not.exist. are.around..may. machines.more.more.been.throughput.chapter. of.e-mail.IT.years.we.. that.for. and.

the.recent.and.trickle. very.have.review.demand.these.to.be.to. that.words.sent.match.spreadsheets.versions.higher.changes.systems. of.manage..using.systems.approval..and.can.pushed.process.lead.The.to. Workflow.documents.in.hardware.advanced. the. world.development. with. at. shown.transfer.than.manual.in.These.evolution..diverse.reconfigured.and.(WM).that. was. to. characterized.formal.Excel.22 10.in.. IT..large.management.enabled.the.has.increasingly.other..to.This.integrate. of. sequences..resulted. rapidly.reductions.be..platforms..bureaucracies.hardware. Continually update process technologies.More.electronic.organizational.began.technologies.that.higher. .of.IT.improve.usually.rather.the.wanted.systems. step.applications.create. and.the..approvals.and.systems.can.development. time.systems. that.sophisticated.. versions.an. the.be.customized. was.is.work. e-mail.has. global.that.software.geographically. information..without.included..rule.in.reconfigured.versions..sets.of.reflect.advances.to.minutes.e-mail.Also.levels.office.systems.104  ◾  Lean Six Sigma for the Office • Business Process Management Suite (BPMS) • Business Process Management (BPM) • Business Process Modeling and Analysis (BMA) • Business Intelligence (BI) • Business Activity Monitoring (BAM) • Enterprise Application Integration (EAI) • Workflow Management (WM) • E-Mail Figure 3.and. can.in.including.in.systems.when.of.process.workflow.to.for..a.to.and.tasks.also..modified..acceleration.Earlier. batching.match. segments.time.are.work.to.structure.down.written.adaptive.dynamically.slowed.dramatic.simple.A.software.specialized.written.users. understand.been. there.by.process.. business.next. as.using.In.to.work.e-mails.capacity.WM.that.of.include.software.of.from.because. of.extensive. and.workflows. to.systems.workflows.Internet-based. workforce. exchange.the.productivity.evolved.

A.and.maintain.and.into.outgoing.in. activities.Initially.modeling.with.BMA..is.parallel.eliminate.call.other..common.provide.on.. are. of. and.. to.across.of.evaluate. workflows. Summary In.began.based.enabled.It.integrated. process. data.offline.developed.and.this.software. changing.(BAM).a.call. the.in.chains.analyze.and..are.In.the.increases..the.sets.workflow..systems.have. workflows.and.customer.monitoring.are.the. automation.These. all.to.proofs. Process. ontext. work.that.in.changes. IT. intermediaries. as. execute.flow. also.integration.work.which. VOC. process.staffing.call.volumes.being.information.are. (BPMS).sophistication.on.to.of.analyze.local. to.the. as. IT.metrics.process.service.manage.first.discussion. across. such. the.and.that...at.create.offices. In. with.a.similar. information.using.were.these.but. used. across.. a.center’s.users.flow.workflows.a.information.time..of.now. reconfigured.their. objectives. most. integrate. waste.also.production.EAI.tasks.call. capacity.(BMA). BAM.it.variables.system. the.reports.These.sets.capacity.from.control. of.the.through.systems. lower-level. proportion.(EAI).system.. tasks. aligned.. (VOC)..information.. simulations... are.office. should. the.the. workflow.Sigma. and.systems.Lean Six Sigma Basics  ◾  105 dispersed.simulate.customers. diverse. Lean..of.were.projects.At.combined.drill-down.These. together.enterprise. used.systems.global.support. be.making.and. customer.simplifies..integration. .conduct.center.inputs. chain. addition.chapter..This. is.applications. level.Kaizen.hardware.improvement.work.that.information.WM..platforms.provide. process.called.review. important. optimum.IT. Lean.systems.activity.in. by.transactions. management.customer.volumes.In.to.level.and. business.tools.rapid.systems.configurations..is.network. automation.to.on.the. to.can.concepts.modern.to.A.measured.of.the. bring.we. system.IT.center. is. to. well.supply.to..across.depending.is.application.Six.software.dynamically.that.and..activities.. goals.Internet-based.routing..A.relevant. voice.changes.and.to... are.to.target.environments.levels.a. are. to.and.IT.enable.Business.been. types.and. the. global.seven. subject.higher. software.system.their. be.work. reduction. process.from.This.BAM. supply.status.employee.a.service.and.quality.identify. and. maintain. c .the. system.example.to.predetermined..or.and.a.systems.to.a.users.enable. experts. a. by.Lean..analysis.necessary. these.basic.process. across.in.Lean. manual.Sigma.must.mistake.At.to.. These. diverse. the.modify. materials.information. to. from.capability.enable. as. that.team.deployed. they.was.levels.extensive.of.natural. based.higher.rule.the. benefits.process.extension..this. useful.of. transaction.discussed.the.waiting.methods.rule.or..tasks. from. of.still.including.incoming. process.level. example..standardizes.in. determine.to.of.that.is. to.decisions.. organizational. levels.status.that. matter.monitors. to. essential.models.systems.provided. various. improvement.business.the.of..its.information. technologies.. deployment.systems. Six.systems.of.are.a.levels.and. its. in..the. on.next. a.Kaizen... suite. system.forms.and.modern.both.Automation.of.basic.impact.monitor. in. shown.collect.events. topics.designed.of. location. activities.At. eliminated..

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

Productivity. Womack.. Redmond.Suri. James. Daniel. P..Quick response manufacturing—A companywide approach to reducing lead times.. WA:.York:.York:. Lean thinking—Banish waste and create wealth in your organization..&.. 2003.1998...Simon. Schwaber. Rajan.. Agile project management with scrum. Jones.Schuster. ..New.. Microsoft.New.. and.Press. 1996..Lean Six Sigma Basics  ◾  107 Ken. T. Professional.

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

Six.As.Lean.members.result.our.events.1.”. several.“follow-up.deployment.follow.events..it.days.will.fast.be.sets.people.to.activities.days.planning.teams.paced.sequential.this.important.be.two.team.build. goal.in. the.1 Kaizen eent checklist.may.if.with.structured..Chapters. carefully. 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.include. 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.major.for.be.to.the.the.an.first.continuing.Figure.events.their.basis.the.The.Kaizen.activities..list.event.four.a.presented..1.of..very.3. be.“presenting.Kaizen. Conduct the Event a b c d e f g h i 3.plan. sections.Chapter.“preparing.for.each..For.reason.is.on.rapid.Sigma.within.112  ◾  Lean Six Sigma for the Office Major Phase 1.of.“conducting.and..on..adversely.impacted. work flows.that.emphasis.sections.It.these.in.involvement.into.completed..containing.shown.”.of.event..discussion.a.schedules.are.planning.concepts.event.and.subsequent. 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.activities.of. chapters.Kaizen.with.These.coordinated.and.Also.in.the. will.of..execution.divided. shown.”.is.several.be.Kaizen.will.form.poorly. 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.the.are.4.to.of.supporting.will.the.to.discussion.4. Our.require.major. Follow-up Figure 4.will.These.Lean. including breakout rooms Ensure support personnel are available to assist the team Collect process information of floor layouts.for.findings.sections.event. .”.very.

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

Celebrate success! for.enablers.and.of.to.suppliers. be..facilitation.with. 9.of.fully.First.with. the.in.reflect.necessary.operations. Facilitators should obtain team feedback every day and make improvements to the Kaizen event as necessary.more.encouraged.an.planning.experience.the. to..customers.team’s.data.it.a.and.means.facilitators. that.to.for.scope.As.an.and. quantified.its. over.the.within.team.opportunity.organization. The Kaizen team should be selected to reflect the project charter’s scope and process boundaries.project.front.activities.or.should.work.methods. enable.contribute.a.speak.the.be.of..event.member’s.agenda.people.ensuring. days.to.reflect. up.. an. is.the.facilitation.boundaries.group.a.a. is.problem.and.dynamics.execution. and activities.. 2..process.everyone. project. 7.the.for.keep.a.An.also.their.be.. An.the. data collection.it.is. 5.4.Kaizen.method.charter.minimum. Keep the event’s schedule and make adjustments based on changing circumstances.. a.facilitation.in. the. to.an.respect.the..team.to.managing. Kaizen. activities.charter’s.in. an.event’s.balanced.Kaizen. meets.are.Also.4. analysis. Table.and.team.internal.consist..may.scheduled.by.prepublished.as..event.members..This..of.and.events.the.team.business.some. and changing their process. event. 3.Experienced..identification.the. team.event’s. important.activities.is. comprising.experienced.ideas. . Team members should be trained as necessary in the proper use of tools and methods for problem identification.occur.team.should.communicates.collection.. Team members should fully participate in team activities.of.of.to.and.methods.be. The team should be facilitated be people familiar with team activities and dynamics.to. success.integral. 4.is.As.several.fifth.adheres.that.analysis.of.roles.process. trained.addition.expectations.facilitation. The Kaizen event should have a prepublished agenda with roles.participants.proper.event’s.properly.everyone. The team should be balanced relative to its experience and work styles.their. agenda..is.that. 8. it.at.example. the.be.responsibilities.should.styles.with.their.changing.Once.tools.who. and.people.important.and.scope. responsibilities..and.130  ◾  Lean Six Sigma for the Office table 4.In.part. 10.a.as.In. important.that.use.a.do.useful.well.the. A project charter should reflect a business opportunity and be scoped for execution over several days. measure..should..team.the.phase.4 important eent Facilitation methods 1.real.lists.use..to.it.as.scoped..result.is..schedule.work..participate.The.a.that. be.process.important.addition.event.an.its.a.and.external..coordination.important.facilitated. of. process..important. event. team.in.to.members.. selected. several.. Second. to. members. 6.event’s...

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

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

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

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.

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

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

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

focus.breakdowns.and.1.strategically. advantages.to. Identify process simplification opportunities..In.lower.is. level. a. described.it.of. workflow.problem. Understand key process input variables (KPIVs) and their effect on key process output variables (KPOVs). workshop.defined. 2. prepare..VSMs. Identify rework and non-value-adding (NVA) operations. to. of.and.VSM.our. focus.will. Construct the Value Stream Map (VSM) Figure 5.a.sequential.across. Provide process documentation. Identify areas for operational improvements. 3.In. Analyze the Value Stream Map for Improvement Opportunities Value Stream Mapping 1. to.project. we. Prepare for the Value Stream Mapping (VSM) Workshop 2.organization’s. Kaizen.higher-level. for. at. discussion.creating. major.a.create.supply. charter.words.. the.that. iscuss.project. when. This.charters.at.in. step.by.chain. create.be.workflow.charters.a. a. will. 6. to..process.. 5. As. .chapter.to. a.context.project.assumption.other.in. chain.and.of.used. charters.In.maps.of.linked.that. team. 3..important. specific. VSM.more.supply..statement.be.5. be..the.major.to.charter’s. was.situations. our.shows.a.are.objective. result. The.1. process.VSM.1 three major steps to creating a alue stream map.. In. 4.shown. a. project.detailed.will. on. detail.this.an. been.a. The value stream map is a visual model of the process including all key operational metrics.5.project. d .well.these.steps. first.levels.eliminate.three.144  ◾  Lean Six Sigma for the Office table 5.1 Why Create a value Stream map? 1.Table.can.Figure. created.VSM.be.. of. have. as. is.several. the..

on. (NVA).This.advantage.simpler. and. financial.overlooked.addition.a. in. as. work.performance.a.a.4.fully.Figure.a.support.is.and.discussed.a.workshop. of.process.performance.be.an.or.data.describing.process.exists.it.standardization.section.to.. objective.lists..a. poor..Chapter. A.and.outside.information.basic. An. defined. steps.Kaizen.of. that.is.. tatement.major.standardization.facilitate.Although.with.of.costs. discussed. owner. operational. time.workflow.will. the. against.event.VSM. such. is. team.that.offline.providing.on. projects.available. cycle.can.dynamic. shown.can. enable.and.team..work.7.direct.its.example.process. modified.using. a. analysis.ones.once.process..building.process. such. be.be.times.team. gaps. process.improvements.has.based.built. provides.if.workflow.1.a.templates.VSM.be.problem. in.The.conditions. in.examples.various.to.. VSMs.effective. perspectives.team.its.model. finance. in.an.In. to..simulation..a. names.audits.single. .VSM.required.. to.a.simulated.these. earlier.source. rework.process. to.necessary.show.to.its.bottleneck.2.to.process.. be.is.methods. from.be.the.. information..transaction.its. that.within.types. will.have.be.the. Figure. as.. is.and.and.constructed.project’s. understanding.“walking”. process. have. simulation.under.project’s..six.model. metric.to.are. their.specific.processes.VSM.once.boundaries.accounting. to. in.complicated.creates. earlier.will.a..various.of.such. show.will.. resources. performance.first..a. rule.tools. where. process. performance..situations..various.visual.requirements.team.helps.workflows.may.or.possible.opportunities.is..ten.A.of..discuss.major.Data Collection and Analysis  ◾  145 C . well. how.a. VSM.a.it.increases. simplification.workflow.benefit.disadvantage.In.key.single. these..a. performance.in.metrics.simulation.process.VSM.These.good.VSM.of.capacity-constrained.project.workflow. and.complicated. used.as.standardized. Obvious.future.creation.as.often.charter.activities.project.in.members.are.local.a.be. as.is. to.expert.for. chapters.5.in..and.those.require.than.always..applied..focus.expertise. as. several.the.a.. analysis.well. can. breakdowns.times.well-written.to.help. non-value-adding..key.facilitated.conditions. levels.concepts.requirements.a.several.one.As.VSM.we. materials. metrics.operations.examples..6.mistake-proofing.this.may.. in...process.process.of.ensure. s .verified.in.work.useful.office.requires. can.5.2. improve.useful.using.on.However.how.yields.office.organizations.analysis.a.a.is.process. and.because. of. operations..Recall..However.identify.listed. chapters.process.a.its.others. select.simulation.as..As. the.Kaizen.discussion.that.charter.process.5.will. close.that.a.it.VSM.measure.process.identify.these.been.major.and..to.just.that. evident..a.prepare.to. information.major.There. a. hours.the.cycle.in.the..system’s.low.its.or. This.requirement. target.and. as. useful.also.Table. relationship. be.a..for.Kaizen.under.bringing.. well.enable. identify.Another.operations.high.a.general.services. can.in.a.higher.that. those.information.to. be.lower.a.Table.of.advantage.has. depending. the.portion..the.more.A. and.cost.a.up-front.will. over.flow.of. become.as.This.it.is. know.from.team.. such.a. we.may.. Although. can.of..may..procurement. operational. they.operational.is...and. examples... discussed.their. in.that.process.analyze..useful.But.workflows. hapter.context.a.needs.an.to.listed.quantified.quality.not.documentation. of. clearly.This.In.model.in..model.the. of. and.long.other..been.by..of.model.that.simulation.where.of.may.. available.are.of. will.perhaps.4.

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

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

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an.are.to.a.later.or. 5. Workflow (Accounts Receivable). 100% Audit Analytical Level Data Gathering Strategy A.improvements..at. Figure 5.review. data.they. 5. 5.to. from.or.control. other.An.. s .over. help.some.. be. 5..methods.well. based.will...of.process.control.10). Work Sampling Using Job Shadowing and Other Methods (Figures 5. on.7.into. random..every.chapters.measured.into.within. such.various.are. ampling. B.will.variation. analysis.time. sampling.would.discuss. Financial and Operational Analysis to Develop Project Charters (Figures 5.be.6.estimate. Micro-Motions (How Person Manipulates Specific Tools and Materials to Complete Each Work Task). from.common.specific. require. sample.of.example.the.of.charts. Cluster Sampling 5. statistical.are. groups.remembered. particular. is. We. naturally.152  ◾  Lean Six Sigma for the Office Sampling 1. 2.book. Work Tasks (Steps to Prepare and Send Invoice to Customer)..divide. stratum.to. customer. a.methods. 4. Random Sampling 2.6 and 5.be.a.to. taken.5 process analysis.unit. sampling.gather. Systematic. which.process.data. more..the.an.damaged.be.example.customers. the.as. that.tool..be. than. are. of. from.draw. a. occurring.each..the.time.visualization.chart.are. templates. 20. a..tools.a.within. analysts. groups. 6.they.each.stream. each. that.used.should.is. to.and.that.goal. as.In.random.to.population. 1.collection. complicated.characteristic.how. process.provides.sampling.improvement.4. and.for.In. Stratified Sampling 3. methods.8.Our.valuation.equal.sustain.Stratified. variable. divides.and.discussion.dividing.example.But. segment. 3.be.help.analysis.satisfaction.would..stratum.group.if. a.a.from.and. then.or. characteristic.samples.accounts.an.nth.market. into.our..drawn.inventory.it.they.cluster. into.items.of.see. at.groups.total. . random.this. important..because.then. sampling.value. measure.in. samples.stratification.An.quantify.then. population.and.A.intervals.to.can. Systematic Sampling 4. a.30. 5.segments. System (Business Unit).a.11)..used.9.population.. inventory. and 5.as.to.of. divided.to.tools. requires. Operation (Send Invoice). stratification.population.sampling. Major Process (Accounting).show. and.inventory.

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to.0 17..Figure.2 1.0 28. that. time.0 18.0 74. Capacity (Units/Time) 7.This. important.the.shows. Forecast Accuracy n.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.classifications.we.7.process. collection.or.several.9 56.8.000 5.one. Returned Goods Expense/ Incidents g.As..a.000 10.how.0 16.done.0 15.000 10.0 70.a.5 24. shown.same.increases. non-value-adding.0 16.team. Unplanned Orders p.0 18.0 21.efforts.0 30.be. using.0 26.Figure.lists.shows. Floor Area Additional Metrics (Depending on Industry or Function) a.audit. Total Process Workflow Cycle Time b.9 30. On-Time Supplier Delivery m.2 26.. Schedule Changes q.3 60.measurement.total.0 14.Later.within.a. Percentage Scheduled Jobs Missed i. both.0 72.as.0 16.0 14. Setup Time (Minutes) 8. initial..0 12. Excess & Inventory 15.4 30. increased. Production Rate (Units/Time) or Operation Cycle Time 3.0 63.0 21.0 52. Number Employee Suggestions e.and. Material Availability t.of.0 2. (NVA).0 21. Downtime% 6.9 14.and.metric.was.0 69. Inventory Efficiency (Turns) l.is.0 19.of.0 66.commonly.1 62.. 85.for. because. either.An.0 22.contained.7 99.in. Inventory (Units in Queue) 9.additional.800 3.8.two. other.0 21.mistake.prioritize.0 100.can.0 1.15.0 29.and.application. several. it.3 92.a. be..8 1.5.is.0 10.list.0 29.0 20.initial.0 28.0 20.demonstrate.000 10.an.000 10. operational.0 15.4).tools. the.0 63.using.7 4.0 13.combination.000 18.performance.0 62.the.0 16.3 1.6 27.5 81.. or.800 3.other.1 75.5.0 17.5.be.0 14.additional.0 20.As.data..good.0 2.7.0 24.on.0 20.shown.issues.will.value-adding.changes.time.0 63.0 24.identify.function.0 25.process.a.800 Week 9 Week 1 Week 2 Week 3 Week 4 17.0 65.0 15. quality.similar.any.several.a.0 17.(VA).5.0 11.will.value-adding.from.5.the.percent.analytical.to.be.0 17.to.source.a.other.0 64. Kaizen.possible. Warranty Expense/ Incidents f.5. condition. perspective.Figure. example.depend.example.0 30.percent.0 9.methods.4 31.5.0 28. and.at.Kaizen.1 24.15.0 20.0 1. Overdue Backlogs r.000 5.of.7.4 58.in.8 100.in.implies.in.that.0 5.Figure. follow-up.negatively. of.office. First Pass Yield (Rolled Throughput Yield-RTY) j..whose.0 25.percentages.job. through.0 19.VA.job.7 85. is.0 1.in. There. schedule.scrap.of.0 12.the. Data Accuracy s.0 19.example..1 1.Figure.0 14.0 17. Rework% 5.0 1.a.of.use.50 420 Date: July Auditor: Joe Takt Time: 8.137. information.of.000 5.industry.to.0 73. shown.environments.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. useful.This..process.provide.0 19.. Scrap% 4.0 27. that.percent. an.percentage. event.in.0 25.of.template.0 55. Figure.1 1.0 21.to. been.The.chapter.5 87.0 50.number. methods.5 1.can. are.“frequent..metrics.increases.0 18.0 16.of.5.0 16. data.3 63..0 27.3.0 2.the.rework.standardization.7.the. a. because. Annualized Savings h.analysis. The. is.such.template.000 5.000 3.office.be.to.advantage. information.collection. impact.environments.0 33.specific.detailed.also.may.800 3.reduced.0 20.0 23.audit.time.17.0 24.. Value Adding % 2.categories.0 60.0 13. to.lists. a.the. Lead Time o.1 6575 Average 15% 26% -27% -17% -14% 42% -17% -30% -34% Figure 5.the.0 68.which.in.time.could. ..0 13.000 10.2 1.2 1. from.a.Figure.0 18.this.process.7..be.more. proofing.0 22.0 18.9 72.0 16.a.that.improved.0 18. Profit/ Loss k.process.level.can.000 5.1 76.0 10.of.conditions.Figure.in.shown.their. As. Number of Problem-Solving Teams c.0 2. performance measurements (similar to Figure 3. baseline.1 1.in.Kaizen.This.0 8.changes.Lean.through.classic.0 15.several.75 50 $1.order..7 1.that.improvements.0 25.approach..projects.0 24. immediately.1 78.including.0 19.0 15.0 19.of.”.000 16.. using.0 55.0 54. Number of Customer Complaints d. in.payable.team.0 23.8.accounts.a.0 13.9 17.advanced.those.red-flag.red-flag.0 16.analysis.issues. a.but. to. as. projects..0 55. an.called.simplification. have.

be.. . is.The.may.5. at.serve.occur.myriad.lead.8..00 $0.causes.teams.root. be.the.00 $52.4 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.00 $13. root.Figure.the.down.for.miscommunication.requests..shown.their. down.be. important.causes.00 $7.sources.causes.template.50 $0.may.within.lead..the. In.changes..00 $15. machine.will.commonly..This.reduce.drill.of.expediting. The. Lack of clarity regarding start of invoice.occur.processes. analyze.as. reasons.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.template.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% $26.50 $535. Jobs required three signatures.continues. conditions.materials. As.customer.will.the. lower-level. useful.8 process audit worksheet.00 $75.can.of.to.a. New employee not familiar with tasks. and.factors.and.75 Date: July 50 Auditor: Joe $1.lack.. Figure 5.issues.increase.5. Jobs have been pending for weeks.also.changes.due.in.team.office.within.process.time. 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. spent.a. number.shown.137.to..of.a. Had to call supplier several times. breakdowns.00 $22.the.either.within. issues.improvement.the. Figure.increase.its.and..50 $0.excellent.also.and.to. the.analyze.wasted. shown..5 10. In.in. These. Job was rushed due to poor planning.as.workflow. Jobs required several sequential operations.or.00 $0. example.and.projects.workflow.to.50 $0.of.waste.00 $19.as.operations.a.50 47% Jobs could not be completed due to incomplete information.value-adding.at.team.the.. the.these.the.used.In.of.to.probability.a.8.25 $15.a. other.schedule..process.00 $30. Jobs for these suppliers are run once per year. every.9. modified.the.50 Takt Time: 8.. time.50 $9.time. Employees did not have information to perform job.operations.(VA). elimination.then.eliminate.percentage.75 $10..Figure.5.50 $79.50 $0. Jobs had to be walked to another department. Work tasks that can be eliminated form the process. to.in. shown.will.context.investigate..of. or.cost. increase.template.due.issues.analysis”. its.operational.Figure.00 $10. also. red-flag.this. broken.reduce.should. Jobs were released at the end of the shift.accounts.for. payable.occurrence.or. well.error. into.level.be.a.its.can.The.root.activities.time.process.situations.9.5.time.manufacturing. metrics..greater.a.of. of.50 $21.00 $52. Work procedures can be made more efficient. Employees confused as to work task.“standard. operation.due.process.Kaizen.Kaizen.of.the. and. in. other.into..00 $75.will.50 $0.

a.of.2..relative.357.It.event.total. time.performance.either.equated. from. cycle.are.analysis”.the.represents.focus.similar.good.of.focus.at.shows.a.how.waste.be.in.operations.to. or.in. Kaizen.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 14.3% 10.example..the.to..gather.can.jobs.9% 11.team.very.job.Recall. within.of. major.already.of..first.a.which.issue.also.time.137.analysis.5% 12.To.the.the.or. the..these.be..reflective.2% 16 44 37 4.data.. the.longer-term. .components. more.place.5.These.represents.. the.categories.our.down.wasted.operations. the. should.workflow..minutes.this.discussion. long.which.3.payable.in.non-value-adding. for.9.Figure.non-value-adding.process.1.of.be.Kaizen..10. identify.5.a.percent.3% 45.waiting.In.to. non-value-adding.5. of.time.“summary.9.percent.also.Figure.estimated.is.several.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 $22.75 50 $1. reasons.part. 357..within.level.an. to.total.of. process.a.waiting.percentages.accounts. 25.of.9.and..the.approximately.accounts.the.performance.. time..50 420 Time Due to Defects Date: July Auditor: Joe Takt Time: 8.process.summarize.minutes.ensure.template.85. of. be.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.the.Perhaps.time. shown.percent.Figure.This.5.8.across.was.are.a.lower.4% Figure 5.time.the. time.45.on.time.broken.useful.process.information.As.for..event.may.9 Waste analysis by operation..that.to.would.just.baseline.focus. one.estimate.total.a.the.as..in.if.one.Figure.the.

to..because.a.of.5.work.of.use.discussed. description.and.structured.the..commonly. It..Typical.the.this.those.this.It.in. another.than.work.and. more.to.activities.computer..10 Summary of waste analysis for seeral jobs.methodology.event.As.Typically..professionals.greater..cause.may.8. associated.analysis.hours.a.the.standardized.4% 16 4.example. or. in.very.templates. to.of.diverse.The.nonvalue-adding..within. an.0% 0 0 0 0 0 0 0 0 Figure 5.employee.50 420 Date: July Auditor: Joe Takt Time: 8.the.As.improve.event.operational.places.75 50 $1.may.Using.not.changes.of.that.characterized.percentages.analyst. related.to.have.root.tasks.an.work.workers.are.of..it. her. also.employee.by. his.is. be.working.beginning.In.assessment. information.percentages.137.jobs.both.and.other.shadowing”.shadowing.systems.on.occur.who.at.meetings. spent.tasks.(NVA).the.as.meetings. number.tasks.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.the.and.only. to. or.time.work..large. tasks. collection..other.proximity.a. their.job.repetitively.at.activity.components.required.be.days.are.time. performing.. is.work.4% 0 357 100.noted.in.Kaizen.template. reports.Most. the.service.11. spent.do. and.on..the.in. In.capture. except.an.of.is.of..process.. work.and.and. information.9.make.shadowing.available. 5.this..or.a.more. payable.of.. job.flow.examples.. more.where.that. the.are.an.process.attending.of.3% 164 45.9% 40 11.team.process.should. to.several.that. process.manufacturing.is.analyses.not.may. spends..by. Figures. major.at.tasks.to.be.such.their.useful.that.. include.Then.collection..or.several.used. is.job.time. shown.5% 44 12.used.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.associated.managers.be.time.just.comment.As.an.levels.and.time.shadowing.is.standardized.final.found.Kaizen. useful. Job.an.20.3% 37 10. and.context.work.in.when.it. complex.useful..useful.However..is.information.components.an. job..amount.work.job. tasks.NVA.is.In.directly.show.require. is.within.time..Quantitative.situations.electronically.office.it.analyze.a.shadowing..not.may.collection.words. complex.example. that.calculated..2% 5 1.job..employee.is.sequences.15-minute.often.will.time. directly.an.shown..major. similar.data.working.simple.processes.observer.linked.method. method.“job..records.by.operational.flow...because.Figure.useful.information.work.is.industries. adapted.inordinate.is.involving.during.data.work.improvement.possible.for.effective.complicated.facilitates.a.analysis.which.track.to.with. easily.an.or. in.extends.from.heavy.method.and.increments.This.by.a.tasks..result. templates.. not.over.over..extensive.repeatable.these.professionals. .with.using.days..procedural.but.which.office.the. shadowing.an.are. data.are.with...actions.have.5. it.analyze.a.

.be.shown. co-locate.data. A.work. by.their.quantitative. a.their. interact.work..stations.and.rearrange. the.of.between.an.tools. diagram. possible..can.In. teams.this.4 Minutes/Unit (50 units in 420 Minutes) Figure 5. minimizing.operations.tasks.possible.information.also..by.cubicles.However. to. and.. materials.a.relationships.is.the.manufacturing..data.5.12.templates. degree.spatial.and.employees.But.the.diagram.Figure.a.diagram.easily.course. high.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.office.or.used.75 50 $1.used. sequence.to..could.is.movement..office.137.movement.the.concept.of. common.it.move.in.analysis.of.collecting.shows.work.result.It.an. greatest.analyst.Using. . that. that. spaghetti.over. information.extent.templates.information.environment.of..a.as.tasks.The.other.also.and.template. A.in.apparent.back..collection. various.collect.method. to.50 420 Observations Date: July Auditor: Joe Takt Time: 8.. should. addition.is.is.data.method.an.or.work.operations. practice.shots.or..computer.material.in.may.daily.this.between.office.flows.to..known.screen.common. work.change..is..examples. to..of.it. to. efficiently. a.example. it.collection.adapted.and.during.spaghetti. be.forth.reports.well.11 Job shadowing worksheet.spaghetti. provided.

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.

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

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28.8 82.6 80.6 67.30).1 root cause analysis: leels 1.1 9 6.4 13 12.0 Figure 6.4 6 5.6 10 7.192  ◾  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 80.5 88. 2.0 94. and 3 (Figures 5.7 94.0 120 100 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 67.2 100. and 5.6 16 14.8 7 5.6 100.26. 5. .

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=1.3830 6 4. • ere may be several ways to communicate process improvements depending on the intended audience.2 use graphics to show process improements.568 MR=0.41 X=1. Process Improvement  ◾  193 Figure 6.14 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.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. • Several graphs may be used together if they help communicate process improvements.13 LCL=-0.133 0.114 2. .48 LCL=0 Time (Minutes) 3 5 7 9 11 Observation 13 15 17 After Improvement 19 UCL=2.

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of. Estimate beginning and ending inventory.type.Nonaligned..not. operations.how. gain or loss of major customers.between. five.marketing. 5.cause.because.this.information. 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.of.may.industry. finance.research.a..As. it.have. and.may..other.of.may. using.by. forecasting. as.data.profit.revenue.example.but. Forecast revenue for product group.workflow.agree.process.caused..products. they. other.because. Provide financial targets.may.low. . financial..of. sales. Adjust revenue allocation by product group. Inaccurate forecasting model parameter estimates or using the wrong forecasting model result in producing the wrong types of products.typical.3.increase.compete. Estimate required capacity.sales. targets. scarce.miscommunication. 4.and.sales. down.capacity.buildup. as.can.process.shows. In.know. an.marketing.missing.include. biased allocations. unrealistic sales targets results in wasted capacity and lost sales. Inaccurate estimate of current and future capacity.process.that.for.to. well. where.a. Miscommunication.1.and.. Figure 6. could. several.. revenue.sales.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.breakdowns. Figure. lost. places.3 Logistics Operations Sales and Marketing example 1: Financial forecasting.. functions.are.example.inaccurate. and.Operation. break. 3.6.functions. 2.margin.breakdowns.declining.financial.simple.production.a.sales. unrealistic.or.they. Inaccurate estimates of beginning inventory result in too much or too little production which drags down the financial forecast.inaccurate.a.be.in.contribute. 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. Inaccurate sales estimates.issues.that.incentives.or..This.cause.building..they.

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

include.or.the.an.order. the.customer.shown. addresses. or damaged items prior to shipment. 3.a.a.orders.product. Order is sent to customer.type.may.4. failure to discover missing or surplus items and related issues.may...incorrectly.accounts.a.customer’s.In..entering.serve.this. one.a. Failure to protect order from the environment.receivable.process.operation.similar.root.in.the.However. Invoice is paid by customer.ordering.operation.taking.product.error..the.request. or.related.At. Incorrect names.eight. arrive damaged or late.of.these.This.be.could.inaccurate.customer. Customer fails to properly receive an order resulting in receipt of damaged items.or. is.become.address.causes. 8. Order receipt.may.customer. an.an.issues.an.. Invoice is sent to customer.of.are. 4.for.second.automated. Invoice creation..have.. and amounts are entered into the system or incorrectly converted by the system. item. Figure 6.a.part.even. surplus.team’s.step.the.service..in..product.Figure.charter. Order is lost or potions of the order are lost.6.employee.analysis.for.team’s.a.operations. 2.a.information.product.this.name.of.. 6.process.as.systems. Invoice is sent to wrong customer or delivery not verified by supplier.basis.a.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 1.4 example 2: Accounts receiable.project.Kaizen.quantity.the.first. 5. Order processing..may.incorrect.of.of. Failure to discover missing.or. Customer places order... type. Order accuracy check prior to shipment.product.if.in. misinterpretation.. Typical Issues Incorrect quantity or product is ordered. .Any. its..In. Invoice is not created due to missing information or is created using inaccurate information.to.This.common. places.the. 7.a.misinterpreted.order.process.correctly.

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

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

3. 5.206  ◾  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). Failure to develop alternative designs that meet customer and business requirements and their characteristics be evaluated using structured methods. Figure 6. Review concepts with customers. Estimate customer needs and requirements. 4. Failure to review new concepts with customers to obtain their feedback in a methodical manner. . site visits. Develop alternative designs. Typical Issues Lack of quantification or methodical survey methods used to obtain the voice of the customer (VOC). focus groups. 2. All VOC information is not transmitted to product design or additional requirements are added that customers do not value or need.5 example 3: new product marketing research. Ineffective or inefficient survey choice of methods (emails. interviews. Gather the VOC. Work with product design to translate VOC into design specifications and prototypes.

a. in. by. standardize design features. errors.Kaizen.Alternatively. process.and. not. probability. issues. can..design. test.statistically. 3. part. Because. information. that. several. 4. of.failure.made. can.rates. products.building.in.true.cycle. of..Also.especially. or. as. 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.that.deployed..methods. As.be.will... to..to.error. it. rework an low operational efficiencies.6 Systems Operations 1. consisting. Also a failure to consider production capability.or. assessment. many.to.result.when.. is.of.A. alternative. s .the.testing.design.may.deployed.designs. an.This. Build.and. complicated.products.may. process. and evaluate prototypes. Create a bill-of-material (BOM) and detailed specifications for production. and.been. example. everal.identify. break.design. a. . process. Inaccurate BOMs.is..issues. this. activities.or. development.process. of. new. miscommunication. production. a.. and production scrap.modern.time.. to. design.product.services.new.and. during.these. product. teams. are. Failure to track design issues such as warranty.of.activities. will. Kaizen.efficiently.longer.and. with..during.proof.operations. design.more.analytical. Figure 6. obtain.development. down. stakeholders.one.project.or. their.. the. activities.use.and. there. major. to. very. other. Translate customer needs and requirements in design specification as well as aesthetic characteristics. the.based.proper. returned goods. key.Process Improvement  ◾  207 Product Design–New Product Development Customer Requirements Received Prototype Designs Created Including Specifications.prototypes.are.valid. workflows.eliminate. consult. or.cost. cause. which.on. failure.mistake.higher. customer complaints.to. 2.these..be.. ways. example 4: new product deelopment.features. Coordinate issues related to design changes. Failure to use statistically based analytical methods or design testing that correlates to actual customer product usage.management. But. of. caused. be. the. VOC.simplify.have. to. will.standardize.practices.mistakes.evaluation. teams.many.

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

rate.requirements.from. the.or. iring.work..factors.include.typical.of.. applicants.becomes. Coordinate job applicant interview process.. on-boarding.formal.work-hour.expenses.analyze.retaining. h . Kaizen.annual.into. start date.an. certain. job. operations.in. 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.manager.people.measure.relevant.000.Process Improvement  ◾  209 Human Resources–Hiring Employees Hiring Manager Requests an Employee Using a Job Requisition Verifies Required Job skills.capture. .the.In.previous.as.where.in. education.that. year.be. be.description. workflow.improve.Important. 3. well.$1..6.excellent.job. well.requirements.termination.there.. shows.concerted.other. Typical Issues Inaccurate capture of job requirements such as skill levels.to.effort. per.a. new-employee.accurately. are.of.using.A.hiring.. of.resulted.employee.to.been.way.new.my.education.. these.similar. olicy.hiring.a. Translate hiring manager requirements into job description.employees.policies. number.failure.posting.this.to. needs.. 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. Each.requirements. days.making.was. requirements. experience. interviews.which. and. of. of. as..It.special. or other relevant factors results in wrong job applicants. as. example.to.and.000. of.and.as.job.a.this. a.translation.it.to. terminated.Kaizen. consists.examples. Poor coordination between the hiring manager and job applicant results in a loss of applicants or long cycle time. a..each.are.once.include.without..skills.100. for. coordinating.processes.employee.in.type. Figure 6.related.that.with. Ineffective communication vehicles for the type of job or the applicant pool. accommodate. between.performance.a.hiring.to.see.of.do..the.process..its.related. experience.job.with.turnover.Inaccurate.than.operation..not. hiring.issues. 4.solution.teams.tasks.process. they. new-employee. 2.and..the.manager.a.having..employees.. activities. manager.changed..were.to. process.more.found. The.HR.associated. p .the.operations.the.one.division.hiring.in.a.has. if.percent. employees.to.translation.for.7.team.improved.. Post the job description to attract job applicants.description. lower-level.analyze. simple.broken. Ineffective on-boarding results in employee or hiring manager dissatisfaction.in.a.an.7 example 5: hiring employees.manner. a. Coordinate on-boarding of new employee.of.often. missed. Figure.Issues.

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

relative.having.process. Typical Issues Failure to develop a system to rate and approve suppliers results in higher procurement cost as well as delivery issues.will. discuss.create.As. value. Develop approved supplier listing.inefficient. to.to.process. outputs.it. evaluate.of. workflows.or. be. is.. Ineffective or inefficient supplier rating systems fail to provide suppliers with information necessary to improve their performance.and.models. An.suppliers.software.operations. stream. design. especially.system. finance. erspectives.cost. of.their..loops. a.processes..to.rework. i . on. finance.approach. customers.simulation. process.those.rating.that.in. and.with.complicated. using.8 example 6: Supplier performance management (Spm)..time.various..over.result. logistics.. 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. Figure 6. and customers.approach. been.such.. it.simulate.to. built.. this. operational.a. has. Although.a. 2. book. interactive.yield.workflow. . versions. creation.performance. highly.not.of. external. Evaluate supplier performance.process.advantage. (VSM).may.supplier.this.necessary.. information. Poor communication to suppliers results in inaccurate information conveyed to suppliers or cycle times may be extended unnecessarily. possible. in.will.Ball®.is.of. in.1.office..as.provide.parallel. map. will..to. some.. logistics.improve. including.to. of. be. 3... Contract Labor. p .Process Improvement  ◾  211 Procurement–Supplier Performance Management (SPM) Supplier Receives Order for Information.an.useful.we.neffective. Poor coordination results in a failure to evaluate a supplier from several organizational perspectives including design.the. Source to suppliers.as. emphasis.quantified. model.inputs.simulation.once.and. changes. systems.a.time.Appendix. Coordinate suppliers across the organization. the.An. manual.. and.Crystal. 4.

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

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

create.well.should.mentioned.a. management’s.budgets.and. cause.project.and...Typical.as.as.Questions”. processes.1.in. for.that.improvement.6.to.asking.miscommunication.and.is. to. and. mentioned.4.showed.goals.and. analysis.controls. internal.model. issues.for. improvements.a. increase. the. time.consists.Figure.process.was.“General. process. a.controls.those.apply. to.of.1.breakdowns. These. inventory.included.example.be.effective. asset.It.in.as.6.to. and.related.consider. through. should.some.process.specification.less. within.want.combination.of.Figure.6.group.of.inspection.effectiveness.6.and.statistical. issues.maintenance.22).addition.6.were.These.prior..in.control.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.audits. demonstrated..related. use.particularly. shown. training.a. of.finance... Kaizen.process. are.of. The..six. using.lower.their.office.be.improving. in.2.project’s. occur.8. Figure.4.their.the.in. as.shown.to.and.entitled.common.concepts.methods.listed.it.procedures.of.such. root.and.yields.sustainable.result.Figure. types.questions..the..was. issues.with.6.This.and. These.recommendations.then.also..section. case. operational.an. how.. modification.3. to. process. investment.forecasting.achieve. gain.. situations.process. relative.6.additional.These.demonstrated...meetings.work.used.tools.the. that.we.processes. such.establishment.testing..where.organizational.process.As.related.balance. and.. be.control..In. example. these.As.process.Table.office. .financial.and.to.typical. in.operations.they.sustainability.various. valuation.improvements. types..may.programs..other.(SPC).process.the.chapter.five. should. used.. a.process.functions.discussed..cost. teams.instructions.4.verbal.include..may.control.between..10 prioritizing new product marketing research projects (similar to Figure 5.to.several. Table.. the.6. cycle.support.that.poor. business. that. Figures. inventory..or.vary.. analyses.processes.and.important.

through.2008.York:.Havey.Mark.should. Michael. opportunities. from.Operational excellence—Using Lean Six Sigma to translate customer value through global supply chains... redesigning. James. Suggested reading Wil..Workflow management models.Work systems and the methods.&... . this.and.Systems modeling for business process improvement..MIT. discussion.MA:..Kaizen.Morgan. Peter.van. Jones... Dan..Martin.Saddle.York:.numerous. Daniel.Rich. and automating processes..Process Improvement  ◾  215 issues.. is.be..Prentice.Schuster. Paul.der.projects..MA:...Media. The.Norwood..including.by.Hines. and..of.organization..methods.. measurement and management of work.variety..Richard.Francisco:.. Jones..Norris.Hee. that.a.Kees..Aalst..teams.Business process change—A manager’s guide to improving.Nick.assessments.Essential business modeling. 1996.2005..Artech. Womack.San.Sebastopol.and.2000..Bustard. David..Auerbach.Press.. and.. T.Paul. P..Hall.2002.Harmon. conclusion.Inc.2003..O’Reilly.Kaufman..Publishers.CA:.are.Hall...eds.New. process..result.van. Mikell.a. improvement.W..Simon.2000..As.2007.an. methods.Pearson-Prentice.always.. Lean thinking—Banish waste and create wealth in your organization.River.Cambridge. Lamming.Groover.. and systems.Peter.identifying.Inc. improvement.operational. Cousins. James.New..P.York:.Kawalek.Value stream management.House.Upper....NJ:..New.

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are. that..relationship.concept.Figure. which.business. influence.1.in.balance.naturally.The.that.time. an. or.be.project.example.done..causes. description.Chapter 7 Building a Business Case for Change oeriew If.analysis. one.versions.team’s.the. ensure. discussed.of. process.change.in.improvements.this.been.a.activities.But.analysis. to.=..more.will..others.diluted.combinations.effective.correct. known.for.sequence.the.which.require.important.and.effectiveness. such. example. initiative.relationship. effectiveness.making.was.its. become.prerequisite. major..following.or. in.There.of. improvement.in. As.effectiveness.for.1.this.problem. organization’s. causes.alignment.that. earlier.this.root.express. several.training.change:.are.in.the.shows.be.effective.As. acceptance. these.to.root.different.and.also. Several.changes. they.the. 219 ..strategy..follow.of.these.. that.or.describe. in.is..a.done.Figure.not.subsequent.in.an.Also. chapters.are.things. been.of.the.and.when.change. other. are. an..basic.×.used.follow. reinforce. order.. each.key.this.multiplied.combination.elements.to.should. a. fail..key.many.sustained. shows.book.These. important. There.to.ways..naturally.7.the.tools.set.1.activities.7.because.of.changed.elements.with. variables.the.different.straightforward.being.Process.be.7.an.tool.have.causes.elements. sequential.shown.of. lements.are.would.elements.efficiently. have. to.simpler.of.analysis. of.according.countermeasures.Kaizen.one. were. change.root..correctly. shown. in.. project’s.projects. several.the.cultural.elements.activities.discussed.of.uses. of.addition. e .of.missing. indicate. over.statement.some. one. organization.of.will.associated.then..chapters.methods..hides. Figure.to.an.must.

.higher-level.many.1.context. activity. events. that.2.A. justification.their.deployment..to. the..this.with.face. In.recognition. objectives.given. they.often. for. Rewards & Recognition Systems 7. a. aizen.occurs.projects..with.Six.quite. result.organizational. for.will.organization.of. Kaizen. anticipated.support.change. The. benefits.In.and. their. activities.achieved. that..is.in.stakeholders. Countermeasures 3.. it. Creation. objectives.any. business. organizational.if. these.will. allocated. have.to.goals. be.project. when. in. Effective. improvement. prioritization.alignment.not.critical. already.systems.their.Lean.. Kaizen.in.are..goals. is.objectives.challenges.. alignment.and.to.necessary. . Empowerment Figure 7. management.reward. important.the. according.a..particular. Control Plan 2.be.and.Sigma.in.and.Chapters.organizational.situation.execution.goals.execution. Communication Planning 6.organizations.organizational.and. synergy.is.year. importance.the.In. prioritized. Project Alignment 8.execution. especially. K . Tool Training 4.an. become.any.that.significant. little. business.Unfortunately..and. initiative. But.and.their.some.their.objectives.of.and. create. isolated.obtain..analyzed. We. and. and.the.are.important.with.these.1 major change elements.management’s. new..projects.aligned.of. resources.resources.the.goals. is..be.in.this.leaders.ensures.the. project. to.key. is.by. important.events.that.alignment.begins.This.verified. discussed.220  ◾  Lean Six Sigma for the Office 1.must.initiative. of. its.has.and.higher-level.of. success.goals.project’s.objectives.. to.teams. Root Cause Analysis 5. or.change.

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

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

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

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

tools.changes.project.obtain.priorities. by.methods.busy.difficult.of.reward. in.right-hand.mitigation.this...These.the.execution.7. Certain..establishing.countermeasures.of. the.viewpoints.to.with. be.analysis.additional.key.address.using. have.These.concerns.barriers. and.negative. these.characteristics.. Also..is. Figure. A.stakeholders.shown.that.on.focus. c .These.. originally.barriers. include.. minimize..an.7.discussed..to.Countermeasures. been.team. of.Kaizen.to.more. recommended.potential.goals.process.shown.to. process.of. empowerment.high.the.4. evaluate. effectively.In.stakeholder.systems.ensure.concepts.are. deployment. . Kaizen.analysis.a.In.summarized. considered.level.may.a. front.barrier.project.countermeasure.diverse.solutions.promoters. ensuring.5.4.the. solution.been.these.have.include. the.is.necessary.organizational.organization’s.previous. fear.organization.efficient.is.change. communicated.and.of.are.Several. data. impact analysis of key stakeholders. team.. changes.impact..promote.countermeasures.positive.project.of.side.stakeholder. a.have.plans.and.results. not.process.Figure. all..introspective. team.help. can.be.mitigation.as.on.and.in.goals.each. those. do. prior.. Kaizen.to.in.the.this.of.characteristics. than.in-depth.key.the.of.in..5. by.an.key.first.analysis.of..4 3.team’s.and..the.will..is.of.and..Figure..are. its.conflicting.development.On.Kaizen.tend.a. improvements.objectives. objectives.of.recognition.useful.require.7.Kaizen.and.is. context. An.aligned.a.7.very.resistance.and.plan.in.information.alignment.7.estimated.is.change.whose.tools.analyze.The.chapters. to.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.effective.collect.stakeholder.to.because.to.training.type.. the.risk.been.impacts.organizational. developed. important.based.the.analysis.by. up.Figures.people. oncept. a.proposed.and.having.it. situation.a.3.of. to.its..the.and.people.a.This. this.more. unknown.risk. team’s.to.

In.cannot.teams.to. to.resource.known.activities. barrier.reward. properly. these.critical.next..impacts.objectives.manage.5 4.two. These.obvious. organizations.execution.Chapter. change.employees.should.have. procedures.required. to. be.to.responsibilities.negative.Limited. systems.a.take.the. conflicts.designed. lack..their.One. that.impacts.it.be.of..the.is.organization. shown.and.Developing. change. of.this.complicated. an.these. .training.this. organized.to. process. As.fact.then.reduce.cause.do.In.professionals..the. assumes.project.countermeasures.of.In. responsibilities.with. be.5..always.barrier.eliminate. importance. important.excessively.issue.(HR).5.and.and.shown.in. were.role.a.if.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. complicated.barriers.be.root..reason.a.barrier. example.reinforce.ensure.understand.effective.this.are. mentioned.and.issues. concepts.deployment.consulted.and. to.issues.of.not.training.develop.and. their. causes.plans.of..aligned..significant.. develop. activities. and.the.reinforce...is.change. due.that.7. is.to. and.situation.Table. process.summary.factor. training.Figure.controls.goals. resistance analysis of proposed changes. in.1..be.that. ensure.in. of. roles.an.the. policies.discussed.types. is.shown..roles..deployment. final.shown.attack.a.work. slow. managed.Bureaucracy.communication.and.causes.is..teams..of.3..discussion.not. is. recognition.fact.for.down.then..or..designed. to.defined.organizational.improvement.aligned. help.rewards. avoids. part.bureaucracy.positively.leader.. a. promoting. in. responsibilities. place.should..proven.been.help..the.are. misunderstandings.-coordinated.Well-designed. that. The.recognition. are.one. non-value-adding.1.problem.a.deployment.Empowering.the.bureaucracy..way..in.but.Human. Clearly..if.a.to.process.was.training.for. deployment. The.Recall. Properly. managers.processes.employee. well. leaders.them.not. and. barriers.In.project. change.is.lower-level. creating. complicated.is. Figure.and.change.the.and.very.. defined.to.that.a.people.correct.this.Kaizen.that. and.the.common.is.significant.assistance.to.also. in. may.7. of. their.to.recognition.is.a.are.in. rewards.required..are.often.resources. (NVA).will. roles.cannot. organizational.empowered.process.employee. and. This. This. the.lack..and.common.how.manner..developed.

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

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

activity. “Should-be” Process 15.all.. version.activities. conducting.summary.goals.just.of.in. Response Plan 21. implementation..effective.shown.because. follow-up. Scheduling process changes.few.current.defined... Standardize operations 24. Perform. Control Plan 20. as. activities. Data Collection 9.discussed..discussion..guide.the. Figure.In.In.that.completed.and.toward. Stakeholder Analysis 5. shown.schedule. event.short.or. Mistake Proof 18. scheduled. Maps 10.important.sequence.Notice.objectives.according.effective.this..completed. Process Performance 19. that. and.that.management.shown. Cost/Benefit Analysis 16...those..format. Standards 8.events. a.Kaizen. but.of.scheduled.to.to.this. improvements. be.activities.7.an.time. in.to. scheduled. Customer CTQs 2.ensure. Kaizen.4.well. are.work..executed.7.communication.7.discussions.importance.occur. is..activities.of.charter.7. is.Improvement. . of.identified.that..as. Transfer Control 25. longer.Gantt. are.sequenced. Potential Solutions 14.is. Detailed Proc.project.of.work. a. to.Building a Business Case for Change  ◾  235 Project Name: Deliverable Team: Complete (Y/N) Major Activity 1.useful. Communication The.an.generic. require.goal.event.scheduling.presented.structured.and.form.checklist.managed.a. igure.A..was. event. In.the.including.be.an.book.be.context. team.with.Chapter.the.duration. COPQ 11.emphasis.In.team’s.summarized.this.this.how.the.be.the.communication.scoped. F . Vital Few Xs 13.a..event.the. 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.in. key.duration.on.various. time. achieve. had.been. carefully. to.their.normally.and.based.Figure. activities.is.or. with.are.end.event. Team Charter 4.chart. time.these... schedule. New Process Map 22.very.their. a.days.1.7 6..a. Validate Improvements 17. occurring.In.is.throughout. Kaizen. Root Cause Analysis 12.Kaizen. activities. Project Plan 7.by.associated.are.has.of. planning. Define Problem 3.that.4.project. New SOPs 23.the.showed. during.in.a.the.repeatedly.. High-Level Map 6..in.on.to.

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

Kanter.The change masters.Prentice.certain.Vintage.risks.well.Business..NY.Building a Business Case for Change  ◾  237 because. Heskett.of. Rosabeth..or. should.projects. as.is.Schuster.Boston:. John.team.School.change. then.Finally.that..New.Operational excellence—Using Lean Six Sigma to translate customer value through global supply chains.promote.. James.1996.the.context.has.to... analysis.may.managed.time.another.activities.have.2008. and..Also.The. 1992.Cliffs.planned. conducted.Innovation.W..a.New.. factors. also. the.their. American.Harvard.York.stakeholders.process.Englewood.and.York.characteristics..process.the.the.that.benefits.obtain.as..promote.communication.project. P.The circle of innovation. are. Tom.2005.and... New.Managing Agile projects.Kotter.NJ:.cost. an. should.in.discussed. the.Peters..relative.the.also.NY. support.key.inhibit.of.tend.consideration.1999.1983.project. Suggested reading Sanjiv.be.to. activities..recommended...in. be..Corporation..to..improvements. .to. Corporate culture and performance..causes.scheduling.countermeasures.project’s.for. Kotter.Once. identify.Simon.improvements.necessary...Augustine..Entrepreneurship.Moss.quality..the.of..that..stakeholders...necessary.New.Auerbach.York:.key.a..inhibit. Press. Free.P.was..root.views. L..York:.Press.breakdown.will.developed. infrastructure.well.Leading change.process.and.differing.eliminate.Martin..or. John..Press. James. to.importance..important.Hall.and...organizational.may.

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

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

is:.to.quality.is.key. Specifies reaction plans to out-of-control conditions..that.be. that.the. major.questions.Table.local.sustained.over.A.the.the.controls.process.In.second.paper. How will we know when they are successful? methods?..plan.control.execute.and. .Implementing Solutions  ◾  241 table 8. table 8.resources.were. levels.These.in. important.useful.causes.various.including.control..questions.the. when.other.. requirements.they.. process.plan.in.the.discuss.or.a.assigning. in.system’s.we.analysis.documentation..should.include. xecuted.work.control.as.into.In.a.A. How will countermeasures or improvements be applied? 4.schedule.to.communicate.incorporated.formats. metric.Ideally. the.bring.developing.well.of.This.placed. What process? 2.will.interpret.of. target..the.controls.root.others. characteristics.electronic. target performance level.process.found..a.related. levels.as.to.activities. plans.process. metric.whom?.control.and.may.the.are. Other.types.how.team’s. Control plan requirements The..will..control.of.review.the..we.these.2.that.time. What countermeasures or improvements? 3.by.. Specifies measurements of KPIVs and KPOVs.will. be. to.used.plans.control.applied.are. Specifies controls on KPIVs and KPOVs.1 Key process improement Questions 1.strategies.on..This. improvements. Specifies tolerances on key process input variables (KPIVs) and key process output variables (KPOVs).tasks. 3.to. Describes who is responsible for what corrective action.this. When will the countermeasures or improvements be made? 6.many.ensure. 4.In. 5.an..8.(Xs).words.controlling.will.to.and.team. performance.to.plan.control.is. 2..the.process.document. and measurement systems.answers. Who is responsible? 5.work.and.important. reaction.discussion.Kaizen.systems.owner.to.shown.and.be. a.be.operational.by.question. monitor.basic.provides.inputs..how.a.organization.. their.. necessary. measurement.discuss.performance.appear.attributes.countermeasures.this. methods.Which.be. and.will.controls.their.and.into.important.back.a.chapter. Document system characteristics of key process input variables (KPIVs) and key process output variables (KPOVs) including their definition.it. 6.in.and. most.to.will.quality.chapter. e .to.the.information.2 Control plan requirements 1.improvement. will.

important Control tools Process.an. be.with. This.documentation.an.that.by.strategies. should.(KPIVs).to.into.as.employees.value. in.the.as.In.haphazardly.been.process.sample.include.documented.and.related.collection. descriptions.causes.ensure.other.time.preferable. selected.tools.frequency.based..be.employee. relying.be. their.An.context.be.training. control. who. tolerances..describe.plan.be.control.ensure.tools.degrades.control.could.the.problem.original.It.hand..original.process.of.a.is.the.be.the.efforts.these.a.. services.to. effectiveness..work.a. ermanently.of.robust. As.a.plan.found.a.sustained.industry.and.quality.actions..incorrect.that.for.control.However. solution.remember.a. products. inaccurate.one.root.second.training.. tools. p .training.used. However. an.audited.training.maintenance. carefully.only.that.of.need.such...a. employee.must...several.tolerance.the..its.variable.outputs.effective.to..would.methods.result.to..method.to.In. .describing.designed.shown. tools.take. more.of.how. were.to.the.it.and.an.if.understand.with.A.process.solution.ensure..is.clearly..performance..not.type.their. as.a. to.This..have.caused. A.deployed.control.critical.how.directly.(KPOVs).ensure.work.so.of.employee. their.robust.eliminate.several.several. and.plan.Table. to.3.taken.control. as.employees..associated.performance.. Table.As.tools. of.control.should. The. example.is.training.target.describes.. controls.be.less..also.a.analysis.incorrect.that.or.on.of.procedures..advantage.an. of.tools.over.procedures...for.elimination.various. ease.of. control.and. will.eliminate.tool. vary.variables.and.process.over..be.including.key.of.is. describes.can.In.combined.this.causing. These.be. as.require.In.error.example.it.sustained.process.be.performance.sampled..as.Measurement.must.customer.specified.process.is.each. p .depend.be. of.not.the.wherever.words.words.sustained.incorporated.tools. sustainability.have.should.8.data. well.as.data.the.well..As.procedure.to.this.that.though.address.on.updated.methods.that.supported.errors.will... time.training.their.for.and.may.used.the..the.be.do.as.that. an. as.important.definition.is.additional.in.should. metric.specific.requirements.to.that..but.the.training. as.common.process..may. and.application.require.change. over.this.8.242  ◾  Lean Six Sigma for the Office placed.as.will.be.. correct.and.lists. and. on.organization.robust. quantities.specifications. well.work.should.and.is.a.using..(VOC).is.also.be.requiring.causes.and.control.root.must.customer.output.method.does. the.actions.a.A.process. control.other. an.control.is.other. hence.should.inspection.process.collection.correctly.specification.as.3.input.customer.control.must.the.employees.to.will. information..be.requirement.the.control.voice.problem.should.specification.There.. manual.names.invoices.size.of. it.on.combination.the.first..controls.inputs. be.to.On.also.A.It.tasks..their.range. countermeasures.required. plan. roblems.being.educated..also. well.requirements.continually.tools..monitored.were.variables.the.operations.impacts.also.time.operations.of.type.example.be.context.of.control. use.if.each.

to.distracted.this. to. modularized.analysis. levels..periodically.will. a.process.this.collected.owner.chapters.. Audits. instruction.periodic. include.or. designed.that.are. to.department.procedures.next.tools.assigned.standardized.(SPC). Also.a.discussed.several.does.and..help.a.procedures. Failure mode and effects analysis (FMEA) 7.developed..elimination.(FMEA).the.from..to..procedures. of. Typical.most.3 important Control tools 1. may.and.that.incorporated..should.integral.be.Implementing Solutions  ◾  243 table 8.procedures.them. of.the.created.training.This. Audits 4.excellent.training.similar. take.gather.of.are..others. very.be. depend..to.standards. similar. inspection. effective. types. Mistake proofing 9.evaluated.control.improvements.plan.work. controls..As.process.there. maintaining.be.updated.highly.the. make..but. in.information. be.forget.expected.the.them.according.to. work.Others. Some.over.effective.they.when.tasks. .or. ections. are. in.information.be. addition.training. another.levels.operations.process. work.process.are. format.not.several.to.evaluation.been.work.sustain.5S. procedures.of.ensure.training.the.In.required.of.discussed. activities.and.addition.well.documents.an.the...should.inspection.the..work.assist. performance. and.the.sustained. work. Updating procedures 3.as.mistake..work.documentation. control.when. 5S (simplification and standardization) 8. are.training.mentioned.responsibility.departments.to. such.part. Eliminating operations and work tasks 10.on..people.team..to.comprising..at.relevant.and.of.into.and.methodologies.a.process.delivery.be.and..operations.time.above. Audits.mode. and.not. Measurement system improvements 6. need.activities.will..manual..will.. these.process.skill.that.of.testing...People..earlier.to..poor.should.Ideally..and. easy. understand.a.and.local. performance. them.is.provide.to.In.proofing.fatigued.However.as.the. many.examples.operations. and. Training 2.instructions.usually. Statistical process controls 5. and.should.control.audit..quality.manual.several..contains.chapter.system.of.one.training.because.process.from.result.especially.controls. effective.control.meticulously..become. forms.other.as.in.information.performance. process..statistical.effects.and. Process modification and redesign written.to.failure.to.process.standardized.and.process. and.that.in.and.has. s . maintaining.their.of.using.periodic.. maintenance.strategy.is.and.to.This.summary.information.a.their.its.for..as.and..imply. tools. were.judgment.with.sustain.a. In.such.is.ensure..control.

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

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i. Number of units failing a standard. i. hours. P-charts are constructed using subgroups of equal or unequal size.5 X-Bar and Range Charts Continuous Cycle time. Number of defects per sampling unit. Assumed Distribution Normal . etc. Normal 25 to 125 observations in total sample with subgroup size=1.e.. incident rates. np-charts are used in situations where subgroup sizes do not vary. 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. hours. Poisson Sample Size 4–6 observations per subgroup and 20–25 subgroups in the initial baseline sample. etc.. costs. U-charts are used in situations where the size of the subgroup size varies. Convenient sampling unit that is constant from one sample to another. etc. incident rates.table 8. 50 or more observations per subgroup. number of errors per invoice. percentage defective invoices. costs. percentage days late. etc.e. number of accidents per building.

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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. .7 A generic quality control plan.

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

4 13 12.6 100.8 Communicating the proposed changes to management.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 80.2 100.7 94. and 3 Figure 5.0 Figure 8. 5.6 10 7.0 94.25.8 7 5. Percent .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 67.8 82.6 16 14. 2.262  ◾  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 1.6 67.26.1 9 6.4 6 5.5 88. and 5.6 80.

see..As.cycle.documented.a.components. event.they.As. a.degradation.enable.of.levels.example.in.8.listing.can. Celebrate with team.a.information. these.event. team. time.dashboard.the.In.Kaizen.time. higher-level. enables..of.graphical.as.organization’s. Communicate the Kaizen event results.4.Figure.listed.lower.chapter.in..highly.can. process.an.simple.addition..complete.cycle.to.root. provides.each.immediately.to. identify..root.activities.dashboards.prevent.breakdowns.root.work.activities.are.dates.the.the.required.step.the.their. to. to.discussion.The.that. using.work.first.type.of.causes.our. . actions.this.larger.there.Table.10.8.completion.that.broken. c.a..A.These...metric..performance.to.be. from.an.steps.tasks.level.completed.These.created.improvement.8.would. easy-to-understand.caused. of.include.in.three.not.occurring.to.Step. performance.time.its. cycle.are.team’s.1 period. corrective. it.would. because.which.The. useful.of..process.to.follow-up.the.the.9..plan.a.be.useful.result.Kaizen.Kaizen.into.users.to.drill.follow-up.similar. down.developed.be. total.analysis.a.8.within. if. of.Implementing Solutions  ◾  263 table 8.process. b.its.this. degrades..in.a. There.owner.control. feature..for.8.a.the. need.part..divided.the.major.be.must. those.celebrating.may.the.Figure. its. versions. m . igure.team. actions.findings.can.and..This. complete. newly.final.for.activities. additional.8. begins.by.be.the.is..countermeasures.down.8 improement eent Follow-up Actiities a. Summary Once.be. onitor.eliminate.for..there. reporting.the. to.the.As.operations.identified.is.enable. problem. many.final. will. event.this. and.10.4.includes.user. appropriate.as.has.a.a.it.success.process.further..from.time..basic.see.should.several. a. F .8...into.time.in.activities..time.of.performance.using.concept.but.metric. take.to.. status.are.to.unfinished.metric.improvements. m ..documented.in. Kaizen.components.responsible.the.process.an. be.able. improved.and. a. organization. that.into.Kaizen.Ideally. their. if.and.be.very.the.shown.them.ideally.task.cause.1.the..communicating.will.Table.have.dashboards. etric.information.These. performance.is.to. to.at. out.dashboard. are. few. degrade.a. a. to.Figure.make. Similar to Step 4 of Figure 4.completion.to.event.basic.format.various. an. process.within.follow-up.of.example. close.and. format.activities..of.activities.related.or. and. a. the.and..drill. Complete all prioritized improvements not completed during Kaizen event. of.is.to..to.also.causes.people.shown.such. the..cycle.integrated. Creating metric dashboards Metric..

.Metric.and.measurement.improvement. Floor Area Rework % Inventory Capacity Scrap % .our.that.of.reaction.. current.require.system.and.dashboards.characteristics.final.necessary.organization.presented.target.A.their.to.as.process.control.by.Effective.eliminate.this.root.monitor.an.combination..control.activated...resources.in.for.countermeasures.chapters.previous.. of.were. normal.this.a..quality.discussion.plan.Although.levels.for.performance.breakdowns..important.failure. usually.presentation.several.important.in.discussed..control.process.to.analysis.is.their.degrades.9 Follow-up actiity list.Another.projects.several.findings.(SPC).chapter.new.others..project. well.effects.team’s.discussed. communicate.tools.in..both.topic.strategies.when.were.control.activities.plans.as.and..the.was.control.and.this. methods.control.causes.the.process.chapter.performance.In..of.future.will.are.(FMEA).included. statistical.These.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.to.concepts.quality.process.mode. process.to.used.a.types.obtain.

0 3.15 $0.corrective.9 2.80 30% D 1 1 0 0 1 1 1 1 0 1 0 1 1 1 1 1 1 1 1 15 $24.0 7.was.5 36.4 99% 97% 95% 99% 97% 99% 98% 95% 93% 98% 99% 96% 97% 99% 94% 99% 97% 98% 92% 94% $27.8 4.40 $10.10 Creating metric dashboards (similar to Figure 5.status.8 5.2 75.1997.8 0.5 $ 91.00 $2.6 100 % 15.0 2.8 1.6 2. .4 2.1 0.70 $8.7 5.3 11.1 4.the.27 20% B 0 1 1 1 1 1 0 1 1 1 0 1 1 0 1 1 0 1 1 1 15 $23.00 $4.4 2.2 1.8 1.8 1.4 1.4 0.9 1.3 0.5 1.3 0.4 131.8 1.8 5.6 21. discussion.95 $19.50 $4.actions.monitor.8 2.40 $13.08 $0.9 1..4 2.1 37.96 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 1.6 1.7 0.9 19.03 % T otal Figure 8.6 6.to.4 0.9 2.7 7. Suggested reading Davis..0 3.6 2.0 7.8 1.1).6 13.5 12.4 13.2 9.1 4.7 1.that.5 1.0 0.60 1.6 16.Bothe.2 1.72 $27.7 2.6 13.9 0..0 3.process.2 7.it.8 10.8 1.8 10% 1.0 3.50 $5.9 27.5 1.8 1.8 1.3 1.0 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 12.05 $4.9 1.8 1.00 15% C 1 0 1 0 1 1 1 0 1 1 1 0 0 1 0 1 1 1 1 1 14 $30.0 1.9 5.74 $5.6 0.8 1.3 6.8 1.00 Total Cost by Process Step Total Cost ($) 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.work.2 0.8 1.0 4.enable.Implementing Solutions  ◾  265 16.metric.0 30.maintain.2 20.5 1.0 8.48 $1.8 4.0 18.8 1.5 3.8 1.0 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: $14.8 1.higher-level.3 3.2 4.1 3.0 1.6 0.2 0.9 1. and.6 7.55 $7.5 1.5 12.appropriate.8 3.local.8 0.and.0 3.their.8 1.McGraw-Hill.4 2.25 $3.2 2.9 4.6 2.0 14.7 0.60 $1.7 0.York:.1 0.mentioned.6 2.6 35% 5.77 $4.4 0.7 0.R.6 26.6 3.00 $8.4 5.0 4.2 4.take.5 1.0 3.6 7.8 1.performance.4 5.8 33.00 $20.00 $12.30 $1.0 10.8 2.5 0.4 4.8 1.a.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 1.4 1.6 7.4 4.1 14.6 3.1 1.00 $6.35 $1.3 17.9 0.4 3.0 2.8 1.3 6.metrics.9 0.team.7 374.owner.70 $4.3 18.8 1.2 5% 0.2 0.New.6 0.0 6.4 3.5 1.2 4.6 0.00 $10.7 10.1 18.25 $5.8 1.8 0.2 2.3 6.to.4 2.6 6..8 1.8 36 20% 3.Measuring process capability.4 $4..should.2 20% 3.of.00 $0.0 0.66 $2.2 75.dashboards.0 2.94 $23.

Paul.New.McGraw-Hill.Juran.Introduction to statistical quality control.&..1993. 1988...Montgomery.2007. and automating processes..Publishers.M.Harmon.Gryna.Francisco:. ed.266  ◾  Lean Six Sigma for the Office Eugene.Auerbach.3rd.York:.. S.New. redesigning..M....ed..Business process change—A manager’s guide to improving.and.2003.New. L.York:.... J. Leavenworth..Martin.. ..Operational excellence—Using Lean Six Sigma to translate customer value through global supply chains.Frank..York:. Statistical quality control.Morgan. John.San... 6th..McGraw-Hill..Quality planning and analysis..Sons. and.C. New. James.. Douglas.1997. Richard.Kaufman.York:.Wiley.W. Grant..

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

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

Publications Publication

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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.

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

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

application. accounts.expert. on. heavily.is.characteristic.this.and.that.278  ◾  Lean Six Sigma for the Office (IT).common.to.include.gathering.that.approach. together.activities. those.across. few.nature..the.(BPM). result.countries.an.the. systems.systems. several.schedule.system..manufacturing.In. are.activity.business..improvement.. IT.such.in..chapters.environments.the.the.is.the.to.as.and.other.event.and.three.collection.cultural. types.are. project.related.plan.but.that. globally. IT.functions. that..employees.once.road.required.of.Update..without..a.or..globally.similar.(EAI).“10.a.and.unsatisfactory.was.that. book.new.days.dispersed.Lean..must.several.a..environments.to.of. As.components.an.service.of.dispersed. this..a.of.office.the.process.overly..work. dependent.office. .degree. Kaizen.were.workflow.Continually.event.their.(BMA)...culturally.organizational. hiring.is. integration.cultures.team.relative.easily..perspective.data.five.as..data.workflows.as.to.written.been.implement.their.information.the..and.entitled.methods.of.work.then.just. a. in. on.The.integration.complicated.are.tools. helped.weeks. workflows.business.high.name.has.accomplish.has. in..fact..them.1.of..This.of.and.people.heavily.processes.and.this.cultures. tends.brought.language.different.between.methods.analysis.major. highly.is.important.example.marketing.between..map..management.five. Process.to.forecasting.in.different.found.words..basis.as.Technologies..collect. systems.shown.office.work.different.product.are.Chapter.Lean.Figure.activities.systems.management.overly. hierarchal. the.systems.in.systems.elements.and..and.to. work.earlier.business.sufficient.discussed.enterprise.schedule.because.Modern.manufacturing.has.result.by.in.methods.because.that.activities.in.major. event.not.global.conduct.improvement.characterized. Kaizen.planning.work. efficient.and. use.are... improvements.mentioned.road.is.3..product.local.application.Kaizen.collection. It.. However.chapters.differentiating.and.a.improvements.three.tools.to.40.is.also. automated.identify. technology.reached....manufacturing.is.create. such. problem.depending.modeling.mentioned.normally..activities.information.templates.are.to.are.section.functionally.process.of.the..and. up...application..to. several. an.was.up-front.people..an.This.rely.geographically..4.past.prescribed.these.(SPM).simplistic.development.differences. example.. although.the.those.completed.directly.and.could. A.change.and.” In.This.environments.But.on.aspects..in.. representation.of. process.environments.on.business.organize.it. the.hierarchal.in..analysis..transitional...modifications.teams.map.process.. examples.the.management.as. intelligence.system. of.potential.methods..information.context. a.apply.in. process.to. are.tools.from.in. As.As.(WM).receivable..are. in.new.people.Kaizen.necessary.full.Also.(BAM).have.and.years.in.its.disparate.service.sequential.and. not.a.financial.not.related.the.days.within.than. all.a.with. types.of.to.are.data. a.book..and.successful.analytical. that..of.if.disconnected.this.data.of. useful. and. Consultants.team.(BI).reports.sharing. used.that.within. situation.and.earlier.I.a.owner.resources.well.book.a.service..manufacturing.monitoring..as.As.supplier.events. across.activities. office. is.and.the.exceed.discussed. have. event.in.and. these.to.In. process. The. approach.performance.event. to.research.a.and.complexity.highly. dispersed. follow.is.office. comprise.This.been.model.

performance. fact.Preliminary.is.the.transactions.related.the. operations.a...based. and.are. In.analysis.currently.systems.placed.is.operations..data.over.determine.process.will.an..and. recommendation.activities.of.of.related.of.because.calendars. events..combination.great. count.because. and.example. difficult.were.workflows.than.As.especially.systems. automatically. created.usually.part. VSM. Kaizen.and.operational. of.tasks.past.characterize.was. of.code.modified. Lean.process.specific.low. service. and.hour. collect.workflows. prior.for.in.a.operational.this.collection.that. particular.discussion.. are.detailed.of.completed. These.information.. data..this.to. is.quantification.methods.operational. systems.shown.. the. and.contrast.and.causes.workers.required.on.or.a.(VSM).service.complicate.part.the.collect.and.. by. result.a.useful. of. systems.transaction.high.map.together. process.can..activities.In.eliminate. context. audits.was.To.and.analyze.these.as.is.that. goal. office.several.difficult.to.a.root.spends.of.cycle.assessment.were.these.physically. key..among. characterization.to. in.and.be. gather.an.the.of.is.machine.to.VSM.in.of. usually. well.yields.tasks.yield.collection.or.in.obtain.that.tasks..which.a.requirements.shadowing.situation.rather.. processes.IT.uptime.operational..hour.relevant.there.analysis.materials. system.of.subsequent..employee. comprised.analyzing.used.on.the..activities.time. Kaizen.including.is.in.making.and.methods.shadowing. caused.related.shown.a.notes.are. a.this..office.manufacturing.it. improvements.. efficient.analyzing. the.work.dependent.manufacturing.machines.presented.setup.repeatable.written.does.not.facility.time. that.its. issues.materials. materials.manufacturing.e-mails. on.service..This.data.percentage.workflow..inventory.a.As.Recall.data.not.a. information.as.meetings.However. and.Sigma.those. time-stamp.personal.and. standardized. time-stamp.to.contrast.implementation.supporting.systems.are. book.. A. is.brought. to.operational..service.The.and..Kaizen. and.team.workflows.which.to.data.of.This.VSM. a.20.assessment.event.integral.similar.their. is.to. collecting. IT.software. this.that. work.represent..in.activities.causes.automatically.constructed.. to. collection.schedule.several.type.hands-on. major.time..to.similar. applications.may.a.of. . lack. more.include. difficult. of.should. in. A. this..up..transaction.across. also..tools.to.information.touch.was.purpose.a.Conclusion  ◾  279 But.and.to.as..of.an.the.that.be.assessment.metrics.chapters. were.are. activities.approaches. versions. was.operational.time.is. situations.service. goal.office..wall. in. more.heavily.reports.manual.degree.on.using. book.to.to..book.to.data.employees. from.that.that.deployed. that.to.years.hours. to. information.The.systems.of. collection. by.and.Other.a. the.I.within. typically..found. is.the.high. service.information.collection.and. modified. service. management.a.eventually..systems. of.operations.job.stream. transactions.an....value.this.service. process. a. to.days.rely.in.These. However.quantified.their.is.an.on.cycle.Six.from.team.It.moving.operations.process.better..identify.is..IT. service.data.the.To.earlier.process.people.to...and.to. the. develop.materials. collection.identify. of. process.be.manufacturing. this.description.metrics.environments.not.imply.done.systems.process.noted.data. Another.on. and.and.to.systems.be.organization’s. systems.notes.provide.costs.. included. a.large. enabling.computerized.over.various..in.work.sticky.assessment.in. in.collect.extent.create. major. analysis.of.

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

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

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

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

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methods.methods.of.a.statistical.black. simulation.we. the.may. or.if.another..would.loops.customer. Real-world.among.simulation.methods.process.is.only.consist.and.outputs.a.organization’s.simple. on.important. well.relating..can.service.a. of.of.process.value.is.for.waiting..enable.team.relationships.eliminating.be.to. levels.simulation.well.the.a.analyze.drive.These.when.because.factors.or.the.rework.levels.information.a.simple.drawing.process.maps. may.if.would.do.at.if.waits.simulation. You.lower.manual. expected.dynamic.process.Think.analyses.variables.week.difficult.the. by.model.these. answer.useful.As.completed.of.a.system.knows.workflows.realistically..more.be.a.to.Kaizen.in.levels.his.of.as. As.operations.they. other.a.using.improvements.a.model.and.to.days.that.then.to.analyzing. estimate.usually.very.yield.workflow. that.cycle.system’s. loops.quality..could.simulation. may.provide..model.quickly.of.minimum.and.its.interrelationships.clear.manner.can.change.5S. as. and.are.understanding.staffing.need. to.This.parallel.customer. as.other.mistake.new..this. levels.analyses?”.its.model.process. time.minimum.stream..its.is.that.time.and.“Why.a.a.its. changing.the..understand.factors.be.computerized. of.similar. an.process.operations.which.Kaizen.use. request.waiting.provide.day. or.simulation.example..useful. call.contains.several.Lean..cycle.Appendix 1: Crystal Ball® Software Most.components..do.these.time.unknown. key..tend..variables.rework. change.a.A.required.maps.input.long. to.words. staffing.example.then.to..such.necessary. depend.the.few.time.contains. her.their.a.to.how.in.. 285 .systems.workflows.how.of.loops.also.as...and.and.cost.and.model.rework.methods.analyses.graphical.a.boxes.a.of.that.a.system. the. employee.analyst. process..In.time.context.team.But.an.many. consist.characterize.process.how.(VSMs). rework.in.the.process.complicated.ask.will.of.loop.In.complicated.volume. numerous.process.how.type.is.incoming.contains.what.using. consist..variables.customer... be. answered.calls.improve..process.either.not.of.customer.each.variables.reduce.simulation. agent. and.when.increase.The..process.complicated. as.of.level.an.as.proofing.evaluating.system’s.among..

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5 Hours 4.5 Hours Std. Uniform Minimum = . . Order Checked for Accuracy Freight Carrier 4. Accounting System Creates Invoice 7. failure to discover missing or surplus items and related issues. 6. Failure to protect order from the environment. Order receipt. Customer places order. Failure to discover missing. Invoice sent to customer. arrive damaged or late. Normal 24 Hours 12 Hours 2 Hours 8. Invoice Is Paid by Customer Operations 1.Appendix 1: Crystal Ball® Software  ◾  289 Accounting-Receivables Distribution 2. Order processing. Invoice Sent to Customer Order Is Closed Customer 1. 2.4). Invoice is not created due to missing information or is created using inaccurate information. 5.1 Accounts receiable simulation: distribution assumptions (similar to Figure 6. Normal 4 Hours Figure A1. Customer Receives Order 8. Dev. Exponential . Incorrect names. Lognormal 48 Hours 3 Hours Order is lost or potions of the order are lost. Uniform Minimum = 8 Hours Maximum = 16 Hours Customer fails to properly receive an order resulting in receipt of damaged items.1 Hours Typical Issues Incorrect quantity or product is ordered. . Customer Places an Order for Several Products 5. Order accuracy check prior to shipment. addresses item and amounts are entered into the system or incorrectly converted by the system. Invoice sent to wrong customer or delivery not verified by supplier.25 Hours Maximum = . surplus or damaged items prior to shipment. Normal 8 Hours 4 Hours 3. Invoice creation. Order sent to customer.5 Hours 7. Distribution Normal Mean . Invoice paid by customer. Order Is Received in Distribution Center and Processed 3. Order Is Shipped to Customer Accounting 6.

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00 2.00 0.00 16.30 0. 0.80 –3. Normal (E11) Normal distribution with parameters: Mean Std. Dev.00 12. 24.00 9.00 57.00 16.00 10.50 0.00 45.00 Mean Std.00 0.40 0.00 Mean Std.crystalball. Dev.00 4.00 12.00 15.00 11.00 60. www. Dev.Appendix 1: Crystal Ball® Software  ◾  291 Normal Exponential Probability Probability 0.00 4.00 50.00 51.60 0.00 6.00 6.00 3.00 40.00 Exponential distribution with parameters: Lognormal distribution with parameters: Uniform Probability 8.00 Exponential (E8) Probability 39.00 Uniform distribution with parameters: Minimum Maximum Normal (E12) 8.00 15.10 0.00 48.00 9.00 6. Lognormal (F10) 8.00 Probability Crystal Ball® software is a global business unit of Oracle® Corporation.2 Some Crystal Ball® software statistical distributions.00 Normal distribution with parameters: Mean Std.00 42.com –2.50 10.00 4. Dev. Probability –10.00 3.00 48.00 30.00 54.00 8.00 0. Probability 0.00 8.00 2.00 12.20 0.00 Rate 2. Dev.00 18.00 10.00 10.00 Normal distribution with parameters: Figure A1.00 20.00 4.00 Normal distribution with parameters: Mean Std.50 0.00 14.70 0.00 .00 13.

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com Figure A1. Process Order 4.2 0. Pay Invoice 3.1 4.0 100. www. Receive Order 8. Process Order 4. Pay Invoice 3.0 Crystal Ball® software is a global business unit of Oracle® Corporation.0 20. Send Invoice 2.0 2.8 7. Check Order 1.0 40.4 Crystal Ball® software sensitiity analysis. Receive Order 8.0 60. Place Order 0. Place Order Distribution Normal Normal Lognormal Uniform Normal Exponential Normal Percentage 80. Send Invoice 2.1 1.0 80. Ship Order 5. . Check Order 1.Appendix 1: Crystal Ball® Software  ◾  293 Percentage Time 7.8 4.0 Operation 7. Ship Order 5.crystalball.

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.overview..33 Control.statistical. unnecessary. creating.282 . infrastructure..Lean.161 China.64–66.events.268 Case..233 .172.charts.distributed...28 .....reducing.of... data..tools.teams.distributed. information.E)..268.management.resistance.analysis.106 .sampling. key..37.255...244–245 ..planning.system.centers. 6.factors..in. overview. c-charts.Six.... Kaizen.for.245 C Call.time.projects.orders..245 ....and.236.20 ..252 . control..38 ...11.operations. work.and.282 ..... key..expenditure.migration..of..Sigma. value.stream..systems.operations .activities.208 Consensus-based.software.projects..stakeholders..184 ..range. change..team..for...247 ..gross..flow.67 .(CE).(C. interpretation. lack.and.normally.charts.and.222.219.236 .(BVA).7 .analysis. avoiding.products.125 ..322  ◾  Index Business.procedures... Lean.setup.reasons.198 Capital.and.172–174..effective. prioritizing.and.(IT)...234 ..227–228 .management.152 Common.eliminating.28.concepts....(IT). opportunities. format.226 .process. Crystal.278 Channel...219–222 .250 .22.and....232 Change.175 C-charts. Kaizen..(VSM).prioritizing.249 ..workflows.. calculations... for..organizational. processes.recognition. project.184.key. (pass/fail). cost-benefit.process.Six.41 Cash.237 Communication. process.cultures..support.282 ..alignment.and.231 .product.in..studies.30 ..value-adding.transition.. bureaucracy.and.67. p-charts. process.and. (continuous).247.Kaizen..charts... seven.165 .164 .priorities.(SMED).162 Compensating.233 Consultants..improvement.and. for. corporate.. cultural. reduce.226..74.improvement.223–224 Change.and. international.26 .and. reducing.114 Cluster..diagrams.building.....235 .activities. 215...235.223.223–224 ..278 Continuous.barriers.. information.and.improvement.121 ...281 .and..rewards.222 .model..20.244.to.69 .technology. scheduling.232 .and..91 .219 Change.272 Communication. key.36 Cause-and-effect.or. 65–66 ..services. strategy. control...and. organizational.map.and. communication.229–232 .173 .supplier.initiative.Ball®.business.binominally.and..team.296 .. conflicting.164 .252 Change .and.workforce.. Lean.margin.in.236 Comparison.change.case.67 ...to.improving.readiness...and.48–49 Competency..245 .Sigma. reducing..75 .248 .collection.61 Canceled.process.variables.for..64 Concurrent.222 ..a.23. readiness..274 .180.metrics.32 .219–238...174 .225 .workflow. process.softwear.38 Complexity.for.212 ...&.246 .and. Minitab®..of.249 ...236.46 Checklists.system.. identifying.160.271 Competitors..71 Change.295.variables.45 Cashflow.and. Kaizen.of...77 .concepts..analysis.96 ...48 Cash.Lean. activities. organizational.flow. performance..analysis.stakeholder.and. individual-moving..engineering.. Kaizen..231 ...increased.210–211 Communication.technology.

.136.233 ...(VSM)..259 Core.metrics..286 .253 .259 ..chart. Kaizen.288.operations.new.274.analysis. structures. interviewing.137 .reduction.impact..of.245 .mode. variation. control.291 ..analysis.stream..of. X-bar..and. transfer.designs.variables.258 .effects.up.cause—late.92.73... types..of...259 .194–196 ..operational..259 ..avoidance.(C..patterns.46 Customer.37 Control...226. new.charts.goods.calculating.demand.and. control..visual..282 .proofing.and...232 ..4th.and...236–237.46..process. changing.(IT)..258 .services...41.of..tools.and..of.. implementing.map.245.deliveries.240 .migration.288 .. sensitivity. modification. analysis.layouts...149–150 .instructions..and. implementation.cause. building.219.process..231..259 .time.222 .241 Control.portions.38 Customers.255 .82.242–243. value.of.graph. cycle..194....questions. 263–264 .and..290 .of.296 .222 .147 Critical-to-quality.278 . key.of.286..229 Cost.stakeholder..value.250 Control.211.258 . 258 .map... for. and.times..and..258..times.limits.analysis...71. 289 Countermeasures..tools..289..sold.120.164 ..40 .audits. elimination.. steps. inventory. histogram.analysis.and.analysis.tools.38 Customer.or. key.251 .and. training.solutions.. business.48. value..down.55 Crystal.plan.. group.. r-charts.stream..testing.258 .188 .. written.....287.. root.259 .226. 259 .types. control.software...exercise.systems.flow..and.293 .285–294 .. high...and..... 200.31 .organizational.systems.36..Index  ◾  323 ..solutions.242 .263 .169 .and.products.290–292 . equipment.satisfaction..analysis. Lean.and.and..batches..87 .190 Customer-facing.modified..245 Control. maintenance.root.. job.methods. 288 Customer.inspection.177–181 .(FMEA). long.events.(COGS).228.a.and. specialized. errors. 255 ..diagrams.. implementing.characteristics. complaints.263.levels...meetings.249 .285..175–176 ... requirements. satisfaction... Lean.procedures.. effectiveness.distributed.and.programs..design.improvement.shadowing...250 ..work.64 Cost.77 .281 .(huddles).166 Cost-benefit. supplier.279 .. cycle. information. Kaizen. reducing.the. process.64 Core. requirements.223. statistical.197.(VSM).. at. modification.setting...288 ..collection..259 .250–251.sustainability.172–174 ...data. cause-and-effect.141–184.distributions..of..285.financial.(CTQ)..245 ..286.and. new.22.reporting.Poisson..reporting.other.87 d Data.239. brown-paper.methods...(CTQ)..and.analysis.process.214. process..227–228..plot.of.and.of.and.38 Cycle.245 .259 . five-why. sensitivity.analysis.impact.27 Critical-to-quality.and.11...148.62 .tools.290 .&. new.43.Ball®.259 .team...for..282.or.292 .level..and..of.technology..analysis. failure...analysis.of.of..verbal.E)...245 .improving.165–166 .information... purchase.261 . box.147 .167 .5S. mistake..199 ..241.

risk..11......and.154 . process.130 Event.36 F Facilitators.(VSM)..132–133 .effects..288 .288 Diversity.demand.facilitator.52.191 Expense.events. methods..40 Deployment.66 Design.89. (FMEA).278 Entitlement. standardized.turnover..116.280 Deployment.31 Excel..and..222 .facilitation.66 Demand .tools.178.analysis.66 Design.strategies.added.(DFM).16...222 English.rating.organizational..163 ....37 e Economic. bottom-up.Sigma.in.and.12.and...pricing.map...for...40.people).project.10–16.12.or. variation..19 Enterprise.296 Defects.....105.(RPN).champion..31 .time.high.55.leaders. tools.195 Error.257 .93 .value.264 .of..290 .....(DFSS)..failure.and.and.analyze.137.Six.of.operations...methods.256 Failure.errors..11 Event...responsibilities. process. scatter...minimizing.standardization.104.data. targets..258 Failure. spreadsheets.of.services. methods.and..methods..200 Finance.priority.191 Failure.170–171 .process.106.229. spaghetti.rates.development.prevention...154 ....reducing.209 Empowerment.221..143 Data.90 ...66 Design.methods..reports.application.139 .123 Equipment .151 ..reports.(equipment.151–159 .198.product.and.of.improve.mode.in.(DMAIC)...... operations.stream.of.continuous.of .(EAI). hierarchical. aligned..change.15 Everyday.36 Exception..12.200 Finance.5..measure. methodology..121...13 Design..131–135 .analysis.(FMEA)..effects..execution..(DFSS)..151..and...14 Deployment.for.graph.12 . level.low.integration....89.115 Finance.analysis. 67 Design..67 ...percentages..collection....and.impact.Manufacturing.9 E-mail.Sigma.... patterns. level..characterization.234 Deployment.94–95.types.training..258 .14..158 .19.269 Downtime..conditions. purchasing..295 .94 .loading..98.diagram.25..points.simplification.series.....planner.. value.12 ..222 .(EVA).language.Six. process.and.269 Distributions...and.46 Design. methods. normal. Pareto.rate.for. classifying...mapping—SIPOC.255–257.modes.15. templates...104 Employee..roles...reduction..288 .options. example.210 .... uniform.95 . template.. top-down.295 Dell.324  ◾  Index .170 . exponential.61 Define.117..258 Failure.87... in.. 135 Drumbeat.196 Employee. common...... prioritizing.168 .288 .66.analysis.160–162 . Kaizen.department..296 ..280 Deployment. control.67.90 .89 Error. time..causes..255...service.plot.119 Financial..chart. 240.130 Fact-based. variation.mode..31 Deployment.

.48..172.46 Financial.233 Implementing.23 .recommendations.case..breakdowns. process..54 Generic.in.high-level.activities.80 .. identifying.275 Global..of.90 .financial.209 .89.positive.assessments.55.recognition...events..reporting. economic.(sorting... process.....32 Improvement... identifying.165 Follow-up. implementation.metrics. 184.233 . organizational.173.process..and..122.Kaizen.analysis.using.language....(5S).3–110.. steps.and. (for.range.statements—balance.to.statements.209 . processes..and.272 i Immediate.systems.82 Five-why.charts).risks.improvement.activities.detection...statements—profit-and-loss. building.silos”.and.. technological...opportunities.improvement. 41–42 Goodness-of-fit..200–201..190 g Gantt.. Kaizen.follow-up.and.negative..implementing.80–81..show.32 Information.(I-MR.projects.workflows.232.risks..service.charts.137....143.. sorting.in.53 Financial..prioritizing.32. alignment.230 High.impact.process.166.outsourcing.224 . through.8...263 Improvement.81...32 Global.chains.and.282 ..solutions).219–238 .236 ..212 .teams..193 Green.43.233 ...22. process.113.235..165–166..24 Financial. 247.89 Hindi.184...for.114 Individual-moving..53 Improvement.improvement. sustaining).reports.behaviors.125 .19 Hiring.risks. 145.resources..234 ..and.business..of....285 ..financial.209..new. process...82 ..and.team.261–262 “Functional.53 Global. self-discipline.expert.278 .174 Improvement..examples.48 Financial.workflow..Index  ◾  325 Financial.solutions..road... change.. process.forecasting.standardizing..38–39.57. regulatory..167–168.115 .objectives.shining..of.and....(HR).235...behaviors.19 Goals..46.and.setting.191 .... Kaizen..36 Financial.Business.down.and.233 ...253 Information..... supplier.233 .supply..280 Financial. reward. worksheet.167–168.208.209 Histogram. 258.282 .202 Five-S.projects.127.209 .234 .in.167 ..and. statements.201.methods.233 .and. project...267–276 Improvement. customer.168 Human.event.14 h Harvard....activities..sheet... identifying...elimination.improvement.process..operational.analyzing. order... standardization...risks.219–276 ...31.flow.150 . changing...23 ..risks.breakdowns.defect..quality.22 .214 Financial..breaking....225..map.change.systems.system.202....test.teams.. skew.factors.167..charts..195..264 .39 High..risks.296 Generic.operational..belt.208–209.a.Review.methodologies.and. reinforcing.287 Graphics.level.221 India.278 ..29. scheduling..25 .workflows.team..66 Implementation.metrics.233 . cultural.282 Incentives.change..261.

.networks... analysis..time.analysis.external..175 . analyze.and.and.103..flow..5S.investment. problem.candidates.4.125 .128 .sizes.9001.178 . continuous.177 .demand...... 5S.137 .operational. total.management....121 .method.. excess.182 .level.37 .data. deployment.payment.times... waste..level.. apply..tasks.business.reasons...180 .14.. obsolete..(JIT)..event.22.177–181.204 ..196 ...reduction..124. balanced.and..methods....27 Internal.24..technology..platforms.prioritized.84 .and.. communication..92 International.letter.times.4–5.improvement.77..and.material.to.work..94–95 .278–281 .139–140.157 .77 .tools.cycle.15.125. as..and.case.projects. link. process..time...60 .. communication.227 .process. change.. supplier.process.. second.quality.. root. 277–279 .195 .137 .for.188 Internal.and.182 Inventory.... reduction. apply..94. balance...60 Inventory.37 Invoice. work..96–98 .collection.data.92 Job.251 J Japan.9004.142 .turns.31 .level...268 Initiatives..major.105. major..and... philosophy..analysis..systems. prioritizing.and. efficiency..on.changes.19–20.183 Inventory.203 Invoicing...105 Infrastructure.the.eliminate..111–218.service.176 Just. ISO.and. checklist.181 ..159.cycle.191 ..material. third.. service.systems.32 . operational. mistake. standardization.9000.language. high.76 .66 Interorganizational.utilization. analysis... conducting.workflows.. control.233..269 Inventory.operations.analyzing.of..data..flow. 76–98 .a.shadowing.116 .134..time..40... reorganize.improvement.179 .. strategies...239 .of.... defining.26 ...30.234.(IT)..4–7 .. reduce..implementing... activities.59 .. 120.for.. ISO.77 .ration. reduce..80.90–91 .59..136 ..operations.maintenance...in.requirements..(Ys).improving..235 .24. first. information.222.165.shadowing..methods.types. 275..cause.272 Internal.in.demand. level. asset....collection.80–81 .7 Kaizen. canceled.vs.. improvements.configurations.prescreening.84–86 .78–79 ..247.preventive.158 Job.97.improvement.waste.physical.136 . data..112..seven.investment. building.124.specifications.87–88 .137 .239 .develop..work.Institute.82–83 .high .273 .of.(SMED).189 .. ISO.setup.change.53 . systems.177 Inventory.of.60.and.92–93 Just-in-time.of. waste.198 .131..Standards. implementing.and..76 K Kaizen..(ISO)..operational. worksheet.and.and..38 .105 .125 Japanese..data. stable. process.and..198 .19 Job.of..135.237.proofing..239 .Internet.standardized.of.and.mistake-proofing..analysis.(JIT).lot..designs...239 .89 .stability...326  ◾  Index Information.175–176.orders.and.methods.240 Internet.135.

analysis. and.of..of..122 .data.improvement..138 .for. project.127.members..charters. preparation. new.across. goals.128.and.. 234 .control.prioritizing.. resistance.240 ...and.233 six...277 . . strategies..product.184 decision-making.229... ..Kaizen.267–268 .163 Kaizen.agenda.supply..126. video.(NPS). project..274 .. supplies.and.system.123...global..138 facilitation..114 . .organizational..change.and.. . . .119–120. .139.128 .for..126 ..and.and.leader.. ..and. improvement. .117.202–203.score.12. ..191 improvement..and.22 ..275 .112 recommendations...and..229.across..111–112. 207–209 project.124 .development.25.117.258 failure.and.analysis.operations. ..212 implementation.and.55 .improvement.and..chains..team.stakeholder.supply.26.workflows.breakdowns. .equipment.... .222 transferring.with. .277 .32. kickoff. 139 key.124 .causes.29.readiness.process.114 .196–198 scheduling. .128 . .for.activities.root.277 .. implementing.. . deployment. .and.117. communication.responsibilities....and.231 Lean.. 141. project.235.129–130..114 ..causes.improvement.153. alignment.118 training..and...risks.for.26.127 root..analysis.personnel.alignment.of..151.155 process...of.. obtaining.116.Sigma.characterization.. international.layouts. infrastructure. facilities..115.... .and.analysis... 131–135.stream. objectives..with..263 .of.115–116..15 .130 .212 Kaizen.255 support.122 .256 general..audio..131.129 .chains.local.233 .responsibilities..in..and.activities..identification.185 change..221.231 .63 Kaizen.195 data.22..examples.(VOC). . prioritized. process.teams.transition. .best-in-class.and.methodologies.187 identifying. objectives..risks.5 Kaizen.experts. worksheet.182..marketing.with. operational. planning.224 .Index  ◾  327 data.organizational.objectives.119–123.23.259 roles.global.analysis..189. support.analysis.collection... .254 net..205... evaluating..promoter. .259 .127 roles.234 implementing.research. ..team.118 . .conferencing. and..measurement...118.213 . .and.. .collection.projects.of..events..solutions. schedule.train.workflows.objectives.deployment. obtaining.process.team.maps..and.233 .8. strategic...components. .tools.and. .and. conditions.and.126. project.. sponsors. . 121..examples.Six.. follow-up.54.and.improvements.of.workflows..177.225 .116 . ..229 process.220 analysis.30 Lean.and. value..components. .solutions. alignment.129 .113–124.event.232 evaluation..115 .and.and.of.220. .goals. Kaizen. .process.286 control. .of..and...financial......50 .and.... opportunities. . activities.steps.training.180 empowerment.and... facilitating.224 communication.process.190.the. voice.36.. .activities.customer.for.215 process. .cause.improvement.and..and.. 269 process.and.22. ..137 measurement.of....workflow.organizational.team..and.280 project.and.effects.and.alignment..and.of..with.277 .. ..223.222 . 269–270 . .160..and.36.136 analysis..of.(FMEA).. organize.. rapid..and.goals.questions.116 rapid. strategic....mode..three.129 failure.134–135.118..charters. . process..42....200.of.charters.26 Lean.change.221 consultation.and.personnel.282 ..

satisfaction.... performance.274 Lean.280 Lean.90 Lean.and.and.1:...281 .viewpoints.242 Key.. six.deployment.90.events...strategies..46 ..(VOC).26.268.of.136 .236 . supplier. Kaizen.projects...Kaizen.7.5 Lean.96..global.125 Korean... Step.220 . financial..time.19 Kotter.analysis.philosophy.198 .....3:.Lean.25 Lean.metrics..46 .275 .methods. reduce..205 .19....cultural.46 .and.operations.tools.for.. process.level.136 ...229–232.. deployment.62 Kano..and.and..input.90 ..conduct..36 .. operational.82.of.of.needs.initiatives.24.23 . process.69.268.122 .needs.45. performance.differences. projects.. rapid.. product.. excitement.processes. Step.of..workflow. tools.analysis.and...41 Lean.Sigma.metrics.and.55 . metrics.24 .language.46 ..and.195.metric..180..222.and.stakeholders.approach. deployment.Six.of.time.282 Lean.. activities.production..and.the..128..269 Lean.66 .78 Korea...of.184 ..112 . sales.event.....P..258 ..129 .objectives.62 ...57 .42..32.and.for.24 ... prioritizing.49 Key..231 .change.initiatives...of.. Lean.and.. reducing..supply.common.. process.62 Key. diverse.changes.customer. data.14 Lean. process.improvement.team....align..workflow.and.(KPIVs)..5.44...complexity..focus..236 .189.191..269.64 . concepts.61 Lean..61..Six..5S.68.222 ....4 .output.223..change.and.. concepts. basic.44..23 l Language.295 ..230.definitions.(DFSS)..14 Lean.(KPOVs)...characteristics.....184 Lead.of.expert...and. common.and.8.4 .event.32 .P..metrics.280 .networks.242 Key.concepts. process.28 Kanban..46 .32..collection. analysis.and.improvement... impact. voice..31.23 ..2:.reasons.process.needs.125...200 .workflows.67 .138 Lean.variables.19 Late.10 .224 .discussing.46 .and.of..31 .improvement.improvement. organizational..Dr. initiatives.233.financial..296 . marketing.variables..202 .240 .137 ..system..resources. human..102 ..46–49.and... implementing. integrated.268 Kobayashi.. culture..solutions.101 Kano.137. improvements..Implement.63. communication.143 ..the.Six.240 .31 .processes.237.process.masters. cards. control.177 .assessment. operational..methods.of..46 .. changing.231 .30.(HR).29 ..Sigma.191 .of. methodologies.the.level..45 Lean.70..100...Design. procurement.Sigma.process.evaluating.. tools.deliveries.(SMED).160.needs.and.57 .105 Lean Six Sigma.98.55 .267.77..design...plan. examples. behaviors..across. inventory...62 .71...135 Leading Change by..chains.39–40 Lean. process.. Step..... initiatives.328  ◾  Index Kaizen.conducting.setup..(listed). major.event..impact.Kaizen.metrics. 18 .of.274.of.22–25..methods...analysis. 270 ..opportunities.11 Lean..Kotter. operational..John.John.and.

and. continually.100–101 . continuous.85.teams. reduce.and.32 .94 Lean.process.21 Lean.....Teams..26.and.designs.Six.-....36–38 Lean.50 .64–66 .improvement. elements. low.event.24.technologies.update.complexity. problem-solving.and.information.and.process.event. tools.and.metrics..tasks.57–110.97 .35 Leanness..Kaizen.Lean.demand..measurements.controls..64 .38 .and.83 Local. global.. low..systems..measurements.of.Six.for.methods.(Voice..106–110 . technology.elements. visual.of.the.capacity.process.of.control.70–73 .cost.charters.Sigma.and. team.96–98.(JIT). Lean.Time.30. project.implementing.105..135 Major.tools..Just...pull.system.event.Just.logs.277–278 .. evaluating.76–98 .team.Sigma. strategic.31 .46 ..environment. project.selection.pull.Stream.117 .process..flow. management.steps. plan..analysis. implement.training.an. implement.30 . deployment.in.30 .methods...time.39.. flow.21.alignment.process.elements...38 .process..Maps.and.the.cycle.. manufacturing..work.of.69 ..37 Link. high. Kaizen..training. simplification.279 Lean..(VA).. supply.. in.58 ..workflows.cause.robust.Six...39 .product.high-level.process. financial.16 . ten..key.workshops..supplier.29.46 .. and).Sigma...Value.12.26 .Sigma. ten.product.. planning.33 .unnecessary..value-adding.(VSM). implementation.identification..methods. project.29 .(VSMs).and.the.complexity.planning. strategies..and. root. implement.29 .the.Sigma.61. rapid.. Customer).. create..of...sizes.to.24..yields.67–68. deploy.schedule..systems.. high. reducing..methods.teams.business.(middle.case.work...74–75 ..32 ..to..46 . continuously.of.100 Lean.the.Six.14.28 .unnecessary.and...112...33 .and.98–99 .chain.and.Six.networks.teams.274 Lot..VOC.41 . develop.operational.38 .Six.and.Kanban.32 . project.customer.14 Maintenance.of.system.26–27 Lean.key.142.operations.and.operational.29 . systems.23 .111 .improvement.and.scheduling.change.in. reduce.elements. 24 .systems..55.. voice.29 .and.222 .system.22. performance.TIme..visual.content.220 .98 m Maintenance.277 .of.of.of..138 .(leadership.26–32 .support.of.55 .networks.27 .37.143 Lean. four.and. analysis.system.technologies.materials.and. mixed-model...assessment.update...data.(JIT).in. projects. performance..of.complexity.office.82–83.32.Basics. problem-solving.39 ...initiative.36 . benefits...variation..deployment.of.14.supply...100 .29 Lean. Lean.and.16 .of. 63.97 .tools.and.Sigma.67–68 .champion.and..Sigma.. business.61–63 Lean.32 .and. alignment.Kaizen.279 ..Sigma.and..and. communication..metrics.. eliminate. eliminate. building.Index  ◾  329 .Six.. Lean.....systems.38 .46 .......53..metrics.a.31 .38 . service. executive.41..Six.....Teams.process... compensating.operations..22 ..15 .internal.operations.46 .68 Lean.29 ..197 .chains.41 .metrics.281 Lean.reducing. 102–104 .improvement.161 .. create..conducting..3–4.16.metrics.212 .teams.69 .and. low. teams.(VOC). understand.78.102 . value.map..workshops). supplier..and.stream.change..

..102 Measurement.285 . eliminating. value.level...265.240 Malcolm...84–85 .criteria.231 Mixed-model. processes.207......job.254.chart.times.(VOC).and. Lean.21 . financial.award.91 .team.142.61 Mitigation.280 .characterization.and.and.and... prioritizing.....methods..and. repeatability. Kaizen.. control.components.120 ..map. operational.reporting.264.84.improvements...254.46 Market.. balance.chain..296 ..297 Minitab®.teams..procedures..66 . Lean... method.. project.analysis...reinforcing.and. resolution.complexity.85 Mathematical.using...Sigma..185 Mandarin.102 ..softwear.variation..254 .Statistical. Kaizen.254 .. process. Lean.29 Minitab..258 .. creating..dashboards.increasing.softwear.workflows..plans...7...of.129 .of.the.improvement. voice.Software. strategy.205 Materials.230.analysis..177 .. market.11 .analysis.296 Minitab®.and.295 .127.example.penetration.and.product.89.research..chart..tools... 198.57.strategies.168 .....189 n Net.255 .score...chart.255 .249 .project.Quality.36 Metrics..scheduling.232 .230 New..66 Mistakes.changes.270 New..scheduling.. simplification.278 ..higher..98. stability.46 .data.295.and. reduce.. reproducibility.shadowing.191.(NPS).. Pareto. inventory.of.inventories. pull.Baldridge.customer.of.issues. error.control.187 .153–154...reduction.statistical..19 Market. accuracy.Sigma.. Kaizen.testing.. Pareto.Minitab.201 Mistake.330  ◾  Index Major..92.Quality.alignment.statistical.data..codes.. linearity.flow.37 . development.and. key.system.162..205 . control... define.173.7 .schedule.156–157 .29..proofing.278 . process....296 .material.and.247.and.87–88 .207 . creating.296 ..cycle.. buffer.system. 281 McDonald’s.190 Miscommunication.error.. 176–177 ..57.28 .253 Non-value-adding.. methods..Sigma. process..by..and.(Appendix.23.. Companion.system..flow.examples.2...137 .Baldridge.promoter.mapping.265 .charts.. balancing.and.features.66.204–205.99.206.160 ..296 Minitab®.191.analysts.system.behaviors.team.254 ..and.. Lean.32 .254 .example.toolsets.research.2).295 .and..products.29–30 ...event... process.240 Management... analyzing.295–297...20..stakeholder.204 Marketing..44.36 .66 .and..222 Mistake-proofing. standardization...295 Minitab®.and... design...and.. 253. operational.Companion....Quality.products . process.196 Nonrandom.283 .64. Kaizen.and..297 .214 New... Companion.modeling.patterns.a..Six.of..supply.263 Metrics .Six.research. functional...37.and..74–75..(NVA)...Six.254 Metric.language.254 Measurement.stream..process.Inc..263.(VSM).106 .254.. process.operations.205–207.189–190 .systems. policies.255 ... common.66.195.and..87 .38.of.and.66 ...268 .135.229 ..45 . 295–298 Misalignment.and.53 Malcolm.

to. value.61 ..or.267 .measurements.269 p Packaging.71.57.169.the.projects. reinforcing. Lean.19.. Kaizen.chains..analysis.55 Operational. value.270 .145....of.of..to.....38–39 ... identifying..60 . critical-to-cost. Lean.143.283 Organizational.common.supply.value-adding.269..lines.investment.operation...and. time.128 Operational. prioritizing.. scrap.69 .reports.and.24..and.60 Office.120 Operational. critical-to-delivery...from.. simplifying...incorrect.methods. allocated. critical-to-quality.25.training..149–150 .254 .information.and.(CTQ).(equipment.and... sending...63 .61 . 70 .task...184.per.proofing.throughput.70 .113 .mistakes.277 .55 . minute).154 ...180..of.in .11..themes.. roles..61 Office.69 .Index  ◾  331 .breakdowns...268.(VA).(units.286 Organizational.(CTC)..new.253...objectives.Excellence.(VSM).53..37 Operations . analysis.277 ..82 Pareto.change. downtime.performance. repetition.behaviors...and.structures.event. global. rework. implementing.products..environments.39 .272 Organizational.168.(VOC)..233.268 .W..29 .. creating..themes..activities.(CTD). standardizing.145 Operational.31..Corporaton.69 .office.. James.of. voice. critical..environment.space....stream.event.44 Operational.themes.119 Operational.assessments..55 Performance.stability.58 o Obsolescence.61 Np-charts.metrics. limited.29 Performance.288 Outsourcing.69 .....safety..map..40 Operational..data...71 .43 .work.. Kaizen.production..cycle.84 Oracle®.and.metrics ..content..31 Operations.282 .the..map.productivity. measurement..of..exercise.41 Operational.collecting.11.jobs.workflow.within.269.. inventory..232 .Martin.responsibilities.percentages.224 Operational Excellence—Translating Customer Value through Global Supply Chains.63 . mathematical..customer.measurements.change..26 Operating.percentages... mistake.change .274.of...cultures.by.floor.182.for..time.improvement..systems.financial.70 .stream.system.required.39.percentages.themes.supply.workflows.168 .64 Overproduction. percentage.or..19. rapid.expenses..or..232 Organizational.269 Operational.69 ..and.(VSM).40 . people).... process..differences.188 Outsourcing.information.147 . dysfunctional..chart.63 . production.18..221 Organizational.defects...barriers.times.chain. transportation..134 Operational..(CTS).69 .gaps.. cultural.63 ..32 Office.and.195 Outliers.184.168 P-charts.goals.research.rate.cost.processes. Kaizen.247 Organizational.environments.55 Organizational...and.9 Organizations..of.team. reporting....discussing.. effective.269 . about. setup.63 .. 69 Performance.31 . brown-paper..(OR)..services..247 Performance.

295 Present.287.104 Process.design.outputs. reducing....developing.and. lack...improvement.methods.worksheet.22 Process.281 Process.243 ... variable.271 .281 Process.cause.224 Process.32 .226.10 .analysis.of...waste . overproduction..28 Process.teams..inventory.on..inspection.82 Process.243 ...operations.168.supply.procedures.243 Process.. audit...78–79.213 . cost-benefit. impact.212 .243 .operations..and.(floor. lack. 5S.walkthrough. strategies. identifying.change...breakdowns.. obtaining.data.78 ..and..258 PowerPoint.control.263 ..135 Process.(FMEA)..levels.configurations..... 194–196 .demand.methods.....7 Process..191..failure..247.findings. root.155 Process..38 Prioritized.experts .barriers.185.prioritizing..243 . organizational. elimination. and....30.....change.. collecting. common...distribution..area. failure.of.243 .202..using.79 Pilot.102.to.222 .optimizing.190.10 Process. employee.196.290 Process ..required. key.240. examples.and.222 .effectiveness. 199–211 . implementing...264 Process..137 . simple..procedures).241 Process..264 .and.analysis.57 Process.analysis.procedures.185–193.variation..analysis.196–198 Process. changing...process. training.tools.. work.characterization..effect.documentation.improvement.60 .7.122 .30 Process....mapping—SIPOC.240 ....242 .barriers.245 Process.and..189.process.technologies.189 . common.inputs.control.57 ..57 .systems.Lean....153.process..53.changes..151–159 Process.36 Poisson. measuring.119 .conflicting. statistical..149.163.event..223. full-time..288...137 .256 . floor.227 .worksheet.and..distribution. reorganizing.152.242. methodologies. mistake.complexity..225.standardization.153 Process..analysis..teams.processes.57 . poor.of.and.(SPC)..for..and.. organizational.examples..... implementation.cause. excess. organizational..32.279 ..analysis.235 Process. Lean.of...188–189.of.269–273 .of.122 Process.. training.82 ...237 Process.242..44 Process.. scheduling..147.243 .analysis.to..improvement.243 ..layouts..194.improvement.activities.Excellence.process. 233.57 .study.improvements.160–162 Process.effects..controls.22.240 .241 .workflows...121...163 Process. part-time.simplifications..200 Process..owner..scheduling.141. opportunities.253 Potential..237 .46 Priorities.274 Process.. poor..training..organization.characteristics.185.148..239..186..updating.151.global.workflows.sustainability.of.141 ..and.analysis.control.332  ◾  Index Physical..242 Process. across.119 Process.information.... 195–218. organizational.questions..136 Probability.. root..283 .and..mode.234.261 Pricing..57 .197 .training.. implementing. continual.60.layouts.audits..224 .and.work. analytic.240 Process. Kaizen.44.levels.eliminating.approach. office..common.of.. control.to....tool.tools.proofing...231 .mapping.process.236 .196 Process.standardization.240.223 .tasks.236..changes..workflow.audit.strategies.242 .lines.....support.reducing.185–193 .222 ....

32 .200 Processes .. common. information.190 Production.map. financial...and.design. new.material..characterization. control.materials...for.. . improving.events. operations. waiting.at.173 .goals.high-level.metrics.45.systems.market.and.281 Processing.50 . value...process..of. prioritizing.redesign. objectives.43 .. performance.process.194 Project.of.60 Process.Kaizen.transport. collect. .150 Product. metrics.40 .workflows.and.measurements..yields..stream.Kaizen..benefits. supplier.36 .57 Process. analyzing. office..identification.forms. product. new.. formal. waste..and.24.the..chain.113 .model.....32 .projects.37.forecasting.27 ..mistake.. example..(P/L).and. simplifying.waste.227.261 Project..goals.30 ..and.and.289 .60 . pull. standardization.workflows.operation. quantification.and.teams.proofing.43 .60 Procurement.characterization.systems..24 .service.145 Project...process.workflow. new.and...40 .tools. outsourcing.(VSM).analysis.or.18–21 Processes.57 ..201 .product.. financial.proofing .90 ..59 Profit-and-loss.290 .59 ..operations.42 ... goals.190 ..or.processing.72.200.204–205 .55.202–203 .24 .and.and.and..19.assessment.153 ..233 .objectives..metrics.50 .of.154 . transfer.controls.57 unnecessary.. operational.50 . changing.events.receivable.process.time.11.(SMED)..53 . process...examples. Lean.high-level..119 .84 .chain..and. quantifiable..supply..work..119 .119 . unnecessary.common.50. financial.Index  ◾  333 ..identification.or..by.222 Project.example.employees.135 .21 . Lean.203 .287 .environments.208–209 ..50.14.solutions.57.and. prioritizing.69 ...35–56. Lean. manufacturing. project.identification.55 .motion...plan.52 .receivable.115 Product.forecasting.224 .220.statistical.rationalization..149 .capacity.9 .and.stream. Lean. cost-benefit.product.235 .and. Lean..279.and.191 ...analysis.control.200–201 .188. auditing. Minitab®. Lean....and.36 ...every...296 .58 ...and.of....of.38 . value..8.. selecting.of..142 . layouts..51. project.197...charters ... control. breaking.mistake. machines....analysis.42 .research.199–211 .. example.and. reduce.of..classics.57.exercise...changes.of.charts... Excel-based...people.complexity...30 .43 .117 .219.57.alignment.41–42 .and.and.288 .41..flow. accounts.processes..52 Project.management..analysis.supply..116 .137 ...models.47 Project... Kaizen..assessment.61 seven.268 Project.77 Productivity .information.proofing.115 Product.statement.performance. mistake.205–207 .(VSM)..data.15..144 Process.technologies.142 .identification. implementing.softwear.of. communication.down.129 .. process. project.20 . three-dimensional.. hiring.. simulation.and. outsourced.by.team...deployment.36. balance. analysis.research.55 .and.setup...champions..product.business. process..18 Product..marketing.and.151.. accounts. breaking... financial.153 .. brown-paper.21 .available..down..227 .. waiting.and.. preparation.defects.development.map...222 .

.91 .32 .a.and.100.sampling..105.56 ...230 Reinforcing.90–91 .exchange...(SMED).methodology.117 ..and.dies.. cost..234 ..F..PowerPoint.102 Q Quality.267–268 .213 ..259–260.events.227 Projects.external.production.analysis.teams.37.system..satisfaction..systems.212 Projects .15.control.227 Proposed..297 Quality.and..274.(COGS)...(IT). typical.297 Quality.charter..269 Projects. templates.55 .time.102 .avoidance.employer.customer.Companion’s.controls.reading.assessment..161 Push.demand.identification—process.. Kaizen.of.of .60. Kanban.nonfinancial. suggested.proposed.225 .2.on.and.benefits.12 Project.39.increases. .teams. .Lean.35–56 prioritizing.298 Quality..definitions..examples...100 Pull.investment..processing. SMED..plan.43–44. change.new.296 Project.satisfaction.227 .supply..behaviors. ..example. prioritizing.to.financial..and..4.87 Red-tagging....151 Range..organizational.improvement..identification..project.40 Project..metric.daily.visual.40 Quick-response. summary..and.48 Project. assigning.227 .transition.66.. ..35 Project...22.questions.....of. resistance.154 .of.274 ....activities.230 Red-flag..212.51.52.chain...supplier.. allocation.116 Project. Kanban.31–32...55..225 Project.334  ◾  Index conducting. single.sold.(ROI)....team.51–54 project...assessment. Kaizen.262 Pull... overview.264.103 .setup.systems. increased.80 Reduce...analysis. others.260 Quality....supply.solutions...14. generic.chains.39 Pull. 269–273 Relocation.using. implement.. Toyota.36–38 overview.technology.100–101 .Frederick.227 .customer.methods.across. .20 Resistance.or.160.leaders.control.(WIP).227 ..scheduling.minute.50.cards.product.. expense.of .system.45 Project. process.. increased.changes. 45 Project....28 ..change. increased. management.improvement.. increased. implementing. minimize.90 Redundancies.reduction..of.changes.cashflow.267–276 ..prioritization..presentations..conditions.in.projects.100. revenue..289 ..inventory.Roadmap..232 Resources.worksheets..... cost.239.251 Rapid..projects.100 .global.195 Regulatory...52 Project.systems.communicating.189 r Random. 31 .7 Reichheld.constraints.and.227 ..Companion.12 Return.satisfaction.metrics...scheduling.to.227 .of.282 .forms.15 ....process.50 project.46–49 Lean.charts.work-in-process. eliminating.and. information.28 Recommendations.39–40 key.benefits.manufacturing.(SMED).219 Project.and.. and..275 Rebates.analysis.....identification—process...plan.259.. important..89.eliminating.. .and...demand..service.risk. short-term.to.goods. stable. 43–44 .Lean. codes.32 . .Companion.267–268 .240 Quantification.

196 Service.167 . workflows.priority.261 .204 Sales.methods. Kaizen.19.and.across.focus.workflows.breakdowns.285.. process.increases.288 . histograms. data... 270 .data..and..197 . 90..77.and..dashboards.systems.125 Single.change.for..and. implementing.3.change.. data.297 Role.analysis. process...157 .operations.200 Risk..model. control.263 . standards. key.64.environments..team.. infrastructure.115 ..workflow.. reward..minimizing. Kaizen.the.processes....change..190.and....170..2. 255 .analysis.119.195 ...23 ..286.. follow-up.212 .dies..274.11.process. cost-benefit.reduction.(FMEA).global.rework. process.minute..195 .estimating.. 180 .. 272 . metric.changes.204 .Financial.and.. reinforcing..improvement.160 .202 .290 .36 Reward.improvement.effects.transition. activities.supply.events.202 Sales.. concepts....of.269 Simplification. Kaizen.events. reduce. waiting.a.1..opportunities. cost-benefit. deployment.(C..285 . project...162.recognition.223 ..227 ..221 .characterization. percentages.25.(RPN).. example:..236. example.process. process.analysis..92.Quality..systems.141. common.assessment.mode.and.39 .and. process.&...272 Service.and..inventory.134 Scrap.279 .world...287. organizational.time.150.of. improvement.stakeholder....analysis .marketing..chains.219.96 Setup.192 ..194 . building.31 Sarbanes–Oxley.. Kaizen.Companion. opportunities.237 .plot.planning.and.282 Scrap. accounts.137 ..113 .systems.135 Sharepoints.287.142.80 Sharing.knowledge.30 ...analysis.. cause-and-effect.and.projects. Accounting..cause.and..and. operational.example.office.activities.273 Shining.Index  ◾  335 Revenue..and.171.91 Six. creating.and.286 . communication.and...182 .prioritizing..a.exchange.management .287 Simulation.192 .promotional..professionals.281..90 .and...164 .233 .80 Simplification.analysis.team.258 Road. changing..and.Services.time..135 .activities. 222..288 .industries.117 Root....setup.change.7 .2.and.analysis. aligning.202 Scatter.(S&OP)...across..receivable.53 Simulation.process.116 .222..192 .and.286.team.26 .and.. disorganized...8.business..Lean..67 Service.272 .and.225 .readiness.and.breakdowns. conducting.(SMED)..214 ..and.across. change.diagrams.and.. failure..chains.supply.. process..global.improvement.recognition.231 Rework.tools.188 .278 Roadmap.improvement.receivable.new..232 .solutions.. identifying.223 ..E).case.collection..Board. change.. level.and..282 S Sales...40 .286.. loops.and.. process.and.map...(FASB).115.240 .separation. collect.196–198.121 Service... accounts.of.strategies....processes.and.and..292 Singapore. level.rating..behaviors.percentages. level...136 .277 .143 .analysis...and.(SMED).184..Sigma .analyze.capacity.200 Senior.

33 .into.and.alignment.team..for...satisfaction.in.five-phase.61.295 . key.extensive.222 .across.and. Kaizen.. . reinforcing.280 implementing.waste.metric.support.and.variables.239 .analysis..10 .162 .229 Standard..statistical.input.(SPC). other.characteristics....10–16 .phases .Sigma. building.analysis.224. creating.150.methods.improvement.. . methodology.241 .168 ..178 ...process.steps..execution. ..reading.analyze..control.the.questions..61 . control.customer..5 ..3–34.. ..business.. .implementing.61 Six.. (define.tools.deploy.collection.“belt”.for...and.process.and.and.methods. communicating.263 .control. key.297 Small. Kaizen..networks... deployment. how..statistical.Sigma. improving.solutions.of.98 . 244–253.measurement.258 .processes.261–262 .. general.analysis.a.example. statistical.initiatives. 269 .variables....System..projects. work. supplier.of.159.and.activities. 24 Six.. quality.191 SMED.240 .270 ..elements.dashboards..teams..(VOC).96 Solutions.improve. process.191 Six.methods. improve.and.. data.analysis....281 . control.of.case.22. building. key.244 Statistical..Sigma.Sigma. key..Sigma.296 Stakeholders.and..of..complexity..tools.142 Statistical.business..system.224 . measurement.process..tools.and.three.152 Strategic.mode. important.strategies.189.analysis. softwear..Lean.and.behaviors. . examples.Asia.of..a.incorporating.collection.268.Minitab®.. reducing.performance.change.and.analyze.. Kaizen. organizational.261.. Kaizen.296 reinforcing.. measure. failure.5 .239–266 .change..111. analyze..sampling.analysis. data..Quality.22–25 . suggested.242–243 .behaviors....41.159 Stakeholder.61 .system. Companion. commitment.9.11 Six.case.and..35 . tools.155 Standardization.Sigma.change.53 .to..effects.51 Strategy..214.system.(KPIVs).226.. control...60 Statistical.global.122 process.Sigma.process..32.(FMEA)..events.output. components.work. overview. follow-up.processes.. 254 Six.improvement.and.142.17 ..184 .system. management. projects.137. define..8.21 process.Sigma.lean.and. overview..129 .requirements.. Lean.proofing.137 outsourcing.analysis..team..error.change. 160 Six.activity.new.process.3–34 .identifying.proposed.336  ◾  Index events.151.to..and. define. deploying.89..initiatives........variables..tools.128.improvement.new. methodology .30.and. important.267 .controls..control).supply....244 .diagram.92.requiring..and.244 ...259 .295 Minitab®.61 .deployment..223 .Sigma.(KPOVs).meetings..gaps. 177.and.63.... outsourcing.253 ..25. 177 .280 .and.205 .. .data.improve.18–21 .296 mistake..254 .from.a.methodologies.breakdowns.61 Six.....improvements.244–253 Southeast.control.methods.281 .template.240 methodologies.178 .240.30 ..plan.softwear..(huddles). Six...122 ..19 Spaghetti.reduction.16.control...group.26–32 .chains.222.plan.and.changes.and. inventory.measure..and... organizational.. voice. 255–257 ..measure....264 ...222 . process..problem-solving....92 SMED.analysis..196...67 Six.principles.project.61 . data.. .42.change.184 .259–260 .(DMAIC). projects.

of.. what.63 .93 System.211. improvements.31...conducting.236 Travel.productive.preductive.identifying.process.or.37 System.chains.expenses.38 . process. relative..total.eliminating.in.good..support.149–150 .run.materials...Kaizen?.......and.and.obtaining.batches. constructing..Need.Service.101 ..preventive..state....scheduling.One.171..15.motion. see also.164.61 ....118 Supply..38 .. functionality.(TPS).pull.....maintenance..flow.waste. (TPM) Toyota.282 Top-down.Reichheld.. dysfunctional.analysis..88.77 Toyota.. 60.environment.cost. developing..Production...develop.37 Total.stream..... time..31 Supplier.92..work.performance.32 .117 Team.93 Total.complexity.management.Parcel..data.(JIT)...28.8. key....76.cells..233 Unit.59.batches..127 ..expectations.....73 .Grow”...just-in-time..117 Testing..274 Transition.72.rate. global.37 ..63 .95 .163 Supplies.system. dysfunctional...movement....10. utility.210 Supplier-input-process-output-customer.87 Transferring.30 t Takt..workflows.information.145 ..System.and.Harvard Business Review article).96.230 Time. “Lean”.maintenance. “Preventive…Autonomous…Predictive”..of. price.systems.to..and.and. (SIPOC).278 .series.studies.of...253 Trial.control. 92–93 .152 Summary.38 United.(TPM).(SPM).(TPM)...33 .sold.concept.sampling.63 Value...57.63 ...services.12 Total.93 .and.initiatives. value-added.modified.67 “The.and..(IT).for..several. production.manufacturing. (Frederick.182 .operations. summary..content. information..and.63 .systems....of. calculation—original.of.85. process..37 Team.8.(JIT).97 United.maintenance.92 v Value.74–75 ..importance.workflow.30.States.process.100 Unnecessary..28 Trends.workflows.75 U-shaped...production.189 . just-in-time.new.strategies.equipment. calculation—future...standardized.networks..and....Index  ◾  337 .58.4–7 Stratified.69 u U-charts.chain.98–99. assigning. 210.17.Number.210 . procedures.. supply.reducing.work. process.You..prioritized.16.202 .87...jobs.77 .products.(COGS).114 ..time.74 ..technology..is..136 .training.77. of.61 Unnecessary.137 Transfer.breakdowns. within.. benefits.105 .availability. 100 Toyota.76 Training. analyze...graph.reducing.82 Time.92.map... predetermined...and.128 Teams. calculation...(VSM).184..163.170–171.117 .63 .members.and.77 System .249 Unionized. process...103 .157 Supplier.forming.

just-in-time.222 creating.event. 32 Voice..26–27....duration...63 .30.71 . value.workflows.of.(VA)..17 ..and.U-shaped..time.alignment.. just-in-time.. implementing. Kaizen. .95 War.280 .workflow.of.operations..mapping–SIPOC.(SMED).61 .systems.. process..and. Kaizen. process. balance. example...39. process. critical-to-quality.unnecessary.118.alignment.Six. standardization. translating..control.office..63.135.requirements...to.and.(SMED).performance...and..analysis..and..61–63 W Waiting.and. Kaizen.proofing.characterization..117. Kaizen.53 .and..70...multicultural.of.software. calculating.systems....setup.. Lean. alignment.26 . reducing... objectives. pictures...21 .model. reinforcing.43 . .and.150 ...90 .7 .279 .workflows.create...patterns.31.implementing.analysis.7.11 . process. 74 .and. three. visual.338  ◾  Index brown-paper.process.systems.rooms.279 ...62..38 .in.analysis.. outsourcing.and.controls.customer..72.7. process.and..79 Visual.job.and.customer.280...supplier.84 .211 .eliminating.planning.basics.115 Waste. process..144 .to...for.and.changes.71.269 Work..145 .. workshop.process.29. example. organizational. Lean.change.120...motion.activities.. Variation.. critical-to-cost.behaviors..safety.(VOC).the.156 Waste.and.team.operations.case. quantification..of.time.63 ..of.the. understanding...collection.cells.122 ..37 Work.10 .91 ...73 .27 . reduce. voice.83 Work.176 .Sigma.10 .(CTC). .63 .pull.material.. example.(CTS)....and..analysis...150.21 . strategy.242 .map.63 .89 ..major.of. reduce.156 .Sigma.shadowing.new..106 .flow. Lean.solutions. common.product. elements.steps. 141–148.setup.(CTD).. critical.system. project.79.environments.of..281 .253 .and..153.themes..implementing..129.with. . eliminating.stream. quantification..and.115.the.44 ..76.of..11.280 Voice.37.195 Work.146 building.workflows.operation.the.receivable.121 ..106 .projects. mistake.workflows.30.and.of.212 .129 .40 Wal-Mart.(JIT).38 . eliminating.operations. Kaizen..accounts..and.3 ..of...100 Visual..characterization..the.205 ....complexity. prioritizing...information...customer...of.time. example...Sigma.a..Six. reasons...187 . outsourcing.(CTQ).business. activities...60 Work .67 .new.environments.process.of.system..and..Six.development.58 “Walk.. process.and.154.and.87 .and.182 .and.153 ..(VOC).127.analyzing.and.35 Work.74 .to.129 .space.164.operations.84 . Lean.of.... standardization.(VOB).cause.themes.. process.131.and.for.(VOC).workflows.146 .basics..systems.(VSM). common. 120.identification.events.145 Value-adding.207 ..themes..(JIT).61.business. ten.and..105 .163 . strategy. critical-to-delivery.of.7 building.themes. process..workflows.37 .70–73 data.unnecessary.144 .data....process”..about.63 ..change. collecting.139 .251 Visio®.exercise. voice.27 .and..by.create.202 .processes.

120.166 ..76 X X-bar.systems.management.(WIP).43 Work-in-process...66 . overloaded..31...chart. Internet-based.84 Workflow.119 .104.247.....codes.Index  ◾  339 Work. reducing..104 Workflows..251 z Zip..173.(WM). internal...stations.60..285 ..277.inventory.278 . 105..

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