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

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

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

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

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

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

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excess. organization. should.may.Lean.and.system’s.cost.want.one.other.accelerate. be.or.other.recently.system.at. This.well.align.cost. be.can.confused:.an. considerations.on.organization’s.savings.where. successful.the. exist.In.organization. savings..business. Six.ensure.. reduce.select.was. process.is... help. cost.. Lean.eliminated.redundant.complexity. in.projects. attained.have.and. relevant.and.benefits.activities.cost. divorced.. basic. time.that.benefits.become.reduce.within. was.. deployment. projects.to.project.tools.. cycle.message. programs. In.greatest.improvements.a.and.methods. shows.it.goals.One.example.is.1. has. Table.as. These..to. Voice of the Customer (VOC) Product and Service Rationalization Analysis of profitability.basis.focus.4.a.these.convey.consulting.customer. In. actual.have.on.the. would.all.improvements.satisfaction. considerable.in.not.needs.of.other. between.that.benefits.to.an.been. execute.an. difference. which determine if they be should done internally or externally.first.activities. a.organization’s.other. identify.an. application. improvement.savings.. period. a.. organization. similar.people. Sigma. for.some. of.4 reducing System Complexity Understand customer value and ensure products and processes have a high value content.planning.was. and strategic impacts to products or services.operational.complexity.rather.methods.level. very.. productivity... rganizations.been.project.. strategic.Six. its.selection.to.these. improving.would.Lean.customer.a.of.important.that. may. concepts. This.also. these.and.assessment.full-time. new. been. unless.projects. startling.concepts.levels.at.In.be..organizational. table 1.modify. Product or Service Design The elimination of components or optimization of the relationships between remaining components of a system.. been.revenue.to.a. The.Sigma.facilities.As. ..increases.effectively.the.on. several.from.based. benefits.quality..to. reducing System Complexity The. used. strategy.In.of.as.reductions.. create.Assigning.. include. stand-alone.a.processes. that. Six. organizations.I.requirements..make.that.deployment’s.should. opinion.overall. by.most.deployment. my.improvement.to. this. However.objectives.. on.created.with. Most..process. Sigma. the..them.up-front..processes.complexity. the. considerations. improvement. their.to. from. useful.an. words.fact. be.to.no.system. to.of.an. have.corporation.an.selection.by.savings.in.or.will..of. in.combination.words.prior.capacity.tools.and. their.is. deploy.the.increase.the. time. department.also.system.organization.have.with. gains.be. strategy.intent.a..all.sense. not.major. operations.created.or.more.and.I.but. to..from.. reducing. was. may.roles..utilized. volume.Strategy Alignment  ◾  17 o .

course.that.tasks..for.remaining.prior. workflows.their. or.may.and.value.impact.the. other.should.competencies. In.to. of.strategies. and.rationalization. and. way..on..any.process. services.efficient. types. the.and. analytical.eliminates. cost.their.deploying.perspective.services. as.third.advantages..careful.this.an.Why.improvement.are.organization.organizational.that.work. candidates.products. touch.rationalization.is...aligned.In.where.many.well.process.an. services.a.and. a.products..to.will.also. very.be. services. There.to.depend.to.processes.it.complexity.future.are.its. system.services.operational.Six.organization. impact.a.their.process.are.. o .workflows..be. rocess.allocate.profitability. activities.associated.be. to. deployment. These...objectives.way.economy-of-scale.improve. services. low-profit..low. identify. a.a.profitability. of.standardize. . the.as.can.that. activities.organization.for. because.products. heavily..a.have.of.workflows.workflow. can.redesigned.starting.. products.other.will.an. p .waste. impact. production.workflows.optimize.front. reduce.. processes.product.approach.low.will. the.from.18  ◾  Lean Six Sigma for the Office organizational. to. rely.core. to.product.no..associated.A.their.approach.improve. organizations. elimination.products.no.be...aligned.future.that.voice.are. of.the.workflows.starts.work.rationalization.have.process.Service.to.is.the.of.summary.but.that.organization’s.In. through.Sigma.of.product.exist. modifications.a.concept.is. design.rationalization.of.to.of. utsourcing.industry.. activities. complexity. processes..back-office.be.other.operations..important.real.of.In.rationalization. major.of.or.increase.for.workflows.may.relative.its. have.prior.to..up.process..system.add.analyzed. Eliminating. their..for.activities.tasks.eliminate. In..specific.processes.performed. on.having.simplify. eliminate. immediate. work..work.This..rationalization.customer.analyze. a. continue.context. to.major.. external.done. Another. for.operations.process...we. teams.profitability.tasks. as.service.and.an..be. that..also.work. lead.resource.in.In.false.Design. effective. as. outsourced. both.improvement.on. on.and.analogous.processes.Lean..a.is.The.to..goals.should.several.profitable?. of. outsourcing processes Many.prior.sense.as.to.attributes. words.One.products. well. design.similar.to...that.. volume. may.make.within..In.and.and.evaluated.or.an.activity. Another.not.various.(VOC).can.on. VOC.additional.as.services.words.organization. come.volumes.requires.Rationalizing.complexity.concepts...because.the. products.can. strategic. directly.their.project.profitability. internal.simplify. date.profits. low-volume. is.is. or.The.to.to. their.content.components.is.process.also. products. be.workflows. and.and.that.negative.. perspectives..it.underlying.profitability.between.consolidate..would.in. Also. a.(DFSS).is. and..workflow.operations.review.initiating. services.or.. to. to. customers. is.increasingly.at.the. outsource.more.to.it.system.customer..scenario.reducing.from.or.packages. may.or. and.prevent.to.with.addition.and.not.this.value...product..with.eliminated.using.is.resources.well.and. discontinuance..to.work.or.a.relationships.associated.with.eliminated.Effective. system.process. the.or. the.is:.no. to.

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implied. workflow. higher.which.outsourcing.be.workflows.different.an. service.understand. a. methods.the.build.extremely.reasons.is.a.an.decision.Six.Organizations. workflows.a.part.work.service. templates.project’s.processes.several.been.in.example.it. work.totally.a.from.fully..important.a..translated.to.to.Six. transfer.. Sigma.preferences.of.value.a.This.it.. goal.situations.products.process.standardization. create.at.as.relocation.parent.geopolitical.should. and.regulations. initiatives..values.within.their. workflows.communicated.as..translation.These.summary. external.Lean.factors.in..a.in.of.local. in.meet.another.world. for. of.extent. from. will.a.of. Six.The.In.supplier.. creates.the. internal.product. axation.good.highest. because.as.conveys.who.new.will. perspective. simple.desire..well.Lean.and.developed.global.environment. p .customs. are.Sigma.major.then.menus.is.a. another.have.major. can.process. tools.one.and.critical.standards.to.a..these.to.Sigma..the.will.on.also.is.understood. the.and.value.a.its.and.world. rocesses.that. will.service.VOC.major.process.of. locations.of.a.for.for.work. an.efficient.demand.of.local. increase.to.a..been.well..information.the.of.to.sharing.be.process.the.many.enabler.migrate.degree. useful.a.This.level.. designs.as.these.outsourcing.the.design. than.region. processes. with. especially.that.radically..content.team.the.also. throughout.the..do.as.considerations.operational.well.offered.its. the.preferences. translating.is. ensure. of.not. are.deployment. parent.second.increase.outsource.supply.that.is.meet.using. of.political.content.of. perspective.more..best.or.world.anywhere.policies.because. at. .or.may.It.level.my.operational.is. transfer.of.prior.relationships. better.do.to. may.and. assets.their.local. respond.have.confusing.are.objectives.be.In.at.experience..a. This. because.relocation.important.to.often.to.can.facility.standardized.a.laws.the.methods.value.impact.detail.of.customs.they.. be.important.great..increase. an.context.Sigma.has..of.languages.transfer.deployment.the.of.all.be. challenges.as.are.in.through. which.stability. final.Lean.activities.of.to. is.effectively.well-documented.context.to.. first.an.deal.stability.to.has. of.of.a.the. other.efficient.and.country.productivity.the.approach.percentage.but.Strategy Alignment  ◾  21 t ...transfers. meanings.customer.executed..it. activities.as. dynamically. the.usually.understand. are.outsourcing.that.specific.by. process.work.is.instructions. global. Once. the.methods. executed.been.the..VOC. have.location..must.a.transfer.internal.that.inspection..from.voice.McDonald’s.where.and.country. these.a.modified.and.the.and..seek. processes.developing..be. they.augmentation. service.process.considered..people.and. Because..this.Process. in. process.work.customer.intangible..outsourcing.an.process. and.customized. new.schedule..What.content.direct.activities.transfer.mistake.well. to.workflows.well.service.real..within.necessary.across.the...of.those.as.efficient.overall.organization.Also. because.designs.then..will.many.service.A.form. Effectively.include. VOC.project’s. example.appear.specifications.their.outsourcing. directly.chain.changes.organization’s.Admittedly.proofed. is.work. concepts. other.Accounting.having.as.consumer. that.properly..a.with. the..be.the..organizations.goals.In.is.form...simplification.or.and.an.Once.language.different.have.because.workflows. Six.work.tools.and.in.may.are.consideration.engineers.to.required.an.often.accounting.a.Lean.

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

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

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

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

its..take.the.and. modern.it.. shown.discussion.Lean.in.ten.been.the.owner.requirements. are.words. the.use..substitutes.identified.recognition.to.new.a.sales.high.influenced. of.information.But.office.need.engineering..key..change. Kotter.period.elements.expectations. must.2.high. corporate. rganization.organizational.will.also.using. then..a.will.through.Lean. of.Sigma. misunderstood.these.improvements.mass.that..in.will. Kaizen.a. can. behavior. cultures. that.correctly. voice.introduce.incentive.a.new.be.an.voice.. on. powerful..events.20. and..rapid..relative. It.may. and. translated.and.customers.However.time.of.its.will. content.countermeasures.for.summary.and.focus. (VOC).process.performance. internal.behaviors.an. Understand the VOC Understanding. ethodologies.on. important elements of a lean System Figure.willingly. service. P.. and.briefly.3.and. correctly.a.root. VOC.large.system.process.must.as.team.local. way. customer.with.time. This.Because..reinforced.employees..will.gathered.of.a. have.number.priority.26  ◾  Lean Six Sigma for the Office o .and.external.has.Sigma. .context.methods.a.value.. firmly. the..15.3..of.the.implies.has. to.daily.or.an.organization.the.quantifiable.change.its.extended. activities.organizational.Chapters.discussion.Sigma. because.elements.work. processes. is.been.our... (IT).only.for. set.must.tools.VOC.must.team. segment.elements.necessary. information.Our.describing. other. workflows.a.eliminate. its. project.particular.translated. of. is.of. some.. into.if. will.In.employees.between.additional.process.high.has. translation.some.and. by.Six. market.behaviors.provide. research.discussion.Lean.causes.be. through.a..assumed.reward.these. and.information.communications.completely.and. how. discuss.compare.needs.projects.be.have..it.the.In.ten.positively..VOC.of.chapters.is.marketing.highly.current. been.its..around.customer.to.these.organizational.years.critical. in.Kaizen.These. process. of.the.a.behaviors.when.specifications.as.period.and.This.our..create.rewards.processes. we.process.is. rigorous.present..the.can.Kaizen.of.ongoing.to.eliminate.be..is.customer..and.poor.systems.service.that.team.proper.If..in. organizational.. John.of.practice.an.Kaizen.and.in.The.design.tools.basis.and. market.Lean.organization.and.expand.an. by.shows.Over.success.and. on.our.listing.for.a.applied.extended.well.customer.waste. for.may. technology. based.probability.a.has. m . that.of.the.to.positively.true.by.of.Then.organization.Six.and.this.identify.be.automated.1. specifications.that.then.the.analyzing. important. is.improvement..identifying.of.recognitions. requirements. and.long-term. this. a.quantifiable. immediately..deployment.that..execute.methods..new.have.unknown. we..characteristics.organization. discussed.be. Lean..to.an.based.Six. a.later.However.process.as.by.concepts.In.

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

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

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

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annualized.The. area.percent.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 .problem..projects.longer. Facility overtime expense for work area A represented 50% of the total facility operating expense across all four work areas ($500.setup.objective.project’s.50. areas.A.operating. focused. using.operating.. Project Objective: Reduce setup time by 50% within one week using a Kaizen event focused within work area A..charter. by.a.000..fiscal..the.Facility.Six.an.percent.operating.31.percent.for.time.for.percent.as: Operating..Kaizen. Setup time issues represented 50% of the machine availability incidents or 10% of the total XYZ facility operating expense.save. machine. ending.this. work.$50.this.may.December. ($500.XYZ.smaller.total.work.availability. one.for.the.executed.of.facility.point.000).time.period.in.percent.or.XYZ.expense.expense..A.statement. 50.project’s.area.to.42  ◾  Lean Six Sigma for the Office Facility XYZ Reduce Operating Expense $1.000.over.is.Lean.expense. work.several.area.overtime.days. Problems..expenses.1 project identification—breaking down high-leel goals.$200.Setup.represented.time.Sigma.represent. within. Problems with machine available in work area A represented 20% of the total XYZ facility expense or $200..are. and. Figure 2. a.Lean.represents.of.Six.can.are. .50.000.be.issues. availability.facility.all.or.written.expense.10. work.the.that.000 for fiscal year ending December 31. (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.facility. XYZ.for.over.be.000).a.represented.across. with.year. week.machine. roject.. A. within.incidents.of.analysis.the.$1.or.Sigma. event.000.executed.project.total. p .total. this.or.000.a.20. Kaizen.of.reduce. in.opportunity.facility..000.to.the.might.A.project.typically. of.000.four.

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

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

projects. ..for.sales. service. these..created.vary.industry.2.to. human. S .vary.in..as..organizations.types...projects.will..with.by.hospitals.manufacturing..The.of.These.within..improvement.regularity. and.other.there.analyze.major.2.are.and.project.institutions.to..2. ubsequent.detail..2.diverse..examples.In.finance.several.examples.rework.educational..functions.to.an.design.that.Figure.an.organizational. provide.2.2.several.These.industry..benefits.usually.product.Table....calculate.chapters.common..Lean. types.. to.shown.industry...of.shows..these.metrics.organizations. specific.organization.Figure.are.within.Lean.efficiencies.as.industry..include.business.or.be.the.by. organizations.also.metrics.metrics..organizations. disparate.in.These.Chapter. operations..of.in.Lean.routinely.function.may.an.discussed.will.well.have.shown.associated.in.how. resources.process.to.functions.functions. Projects.retail.institutions. within.effectiveness.others..themes.these.even.are. improve.compliance.as.governments.rules.within. functions.provide. typical project examples The..3.marketing. procurement.include.as.specific.well. financial.and.2 project identification—process analysis.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.and.

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

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

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

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

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of.643 $ 5.projects.identified.identifying.obtained.Figure.to.3 project charter example.have.an. is.that. improvements.their.through.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. .are.prioritize.strategic.been.to.common.performance. 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).deployment.close..000 $ 5.above.strategic.that..There. most.prior. also..goals.and.643 $ 61.projects.the.analysis.used. productivity.can.Some. to.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. e average A/R balance is $15 million between 31 and 60 days.643 Comments Team Information Team Leader: Team Members: Name Role Expertise % Time Figure 2.2.in.organization’s..000 $ 56. e result is lost interest expense from money that should be collected no later than 30 days from invoicing.gaps.performance.shown.an.minimum.objectives.resource. over.643 $ 56.4. of.include.and.of.be.6 K ($15 MM) *(15 Days/365 Days)*10% = $61. prioritizing projects Prioritization.These. $10 million between 61 and 90 days and $5 Million over 90 days. projects. To reduce the accounts receivable cycle time by 50% in the 31– 60 (15 days) to save $61. that.to.expenditure.are.gaps.strategies.several. important. ensure.already.with.

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Publishing.for..2006.Wiley.Management...New.2005.and.York:. Practices.P. scheduling.Auerbach. and controlling..Donald. Series. Parviz.1993..ed.Operational excellence—Using Lean Six Sigma to translate customer value through global supply chains.. James. James.J.and.IIL.. York:.and. Joseph.New.York:.8.Wiley.W. Harold....Engineering.1995..Wiley.9th.New.Kent.Project management maturity model.. Martin..Engineering.Martin.Auerbach.Kerzner. New..Management.in..and.Wiley.Project management: A systems approach to planning..56  ◾  Lean Six Sigma for the Office Suggested reading J.Levin... Hans..2008.Business..Ginger...Martino.. New..Series..Vol.Lang. Lean Six Sigma for supply chain management..New.. 2007..York:..Research and development project selection.Rad.N.ed.in.Crawford.The selection process for capital projects..York:..2007.2nd.Technology.York:..Wiley..Series. . W.F.New.Merino.Technology..Project portfolio management tools and techniques..Center.York:. McGraw-Hill.

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

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

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

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

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

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

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

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

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

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

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

should.actively.success.responsibility. with.performance.and. that. Identify root causes of the problem 5.especially.realign.information.deployment.organization.studies. are.been.is.contrast.a.high-performance.performing.to. Performing Stage 2.a.that.do.between. forming.leadership.leadership. Forming Stage 6.common.improvements.team. within.improve.spends.goals.four.teams. .In.situations..This.not.in.factor..resources.necessary.. data collection.shown.process.support.successively.norming.several.to. the.of. culturally.A.very..down. the.success. aligned.change.shown.68  ◾  Lean Six Sigma for the Office 1..also.remove.team.differences.aligned.its.barriers.of.creation. analysis..or. team.move.is.a.in.work. organization’s.simple..and.and. has.important.goals.to.in.the.perspectives.that.Another.consistent.organization.the. However.on. analysis. an.team.ensure.An.effective..high-performance.respect.respected.these.and.teams.is.manner.facilitation.translated.higher-level.stages.perspectives. Celebrate success! 3. activities..that. organization’s.to.one.communicating. focus..Figure.some.several. team.facilitation. and. improvement.. both.with. Case.and.help.that.the.is.four. deployment.is.members.interval.related. on. and.responsibilities.It.team’s.. create.creating. goals. d . Process.stage.but.team’s. deploy lean Six Sigma teams.be.depends. the.efficient.create.ways. diversity.and. Norming Stage 2.because.work..Sigma.while.stages.perspective. objectives. a.of. incentive.In.a. help..shown.to. leadership.that..3:. an.they.element.the.of.to.an.more.an... high-performance.of.team. psychologically. data. work.a.in.extent. An.the.skill.Another.are.roles.consistently.are.members.as. Manage the four stages of team growth 3.will. Continuously improve team performance 1.The.of.time.support.to.to.objectives. process..of.lower.factors.has..given.it. ifferent.quickly. Storming Stage Figure 3.have. collection.reinforcing.lack. and process change 4.patience.and.latter.organizational.levels.factors.common. Train the team in the proper tools and methods of problem identification.systems.provide.a.important. teams.important.active.team.to.team.are.3.3 3. Select the team based on the project charter 4.activities.are.storming.properly.through..been.success..Lean.and.Diversity.a.easier..or.initiative.found.different.by.to.the.way.sustain.particularly.through.varies.key.sets..dysfunctional. is.consists.when.effective.usually. and.objectives.within.maturation.also.require.maturation.and.is.important.developing.others.Six.. a.

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

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organizations.once-per-month.discard. used. visual. 4. This minimizes the time it Example: Dump old files.3 7.cleanup. Set in order 3. Standardize Ensure work tasks are performed in a standardized manner using checklists. equipment.is. equipment.issues.example. equipment.encourage.work.items. . to. and instructions. This.. an.be.Distractions.may. maintenance. Ensure computer files are properly documented for easy access.obsolete.some. Ensure there is one location to place those items remaining in the work area.Lean Six Sigma Basics  ◾  81 table 3.organized.so.can.classic.placing.to.in.without. takes to look for things.is..floor. Abnormal conditions such as oil leaks and rework are easier to see under these circumstances.a.are.and.b. s . and information within easy access of the worker.and. maintenance.keeping. procedures.reports.time.an. then separate operations that can be standardized (back office) and ensure the customized operations are tightly controlled. contributes.an.under. mistakes.no.necessary. If the work is complicated.mats.tasks. needed to do the work. higher.well. Maintain work areas that are clean so abnormal conditions can be easily seen.equipment. 2..work. 5. oil..other.that. Use control plans and deploy continuous improvement teams.As.work.to.and. completed. place all tools. Sorting Classic  Manufacturing Application Service Application Separate materials and tools Maintain clean work areas that are needed in a work and eliminate materials or area from those that are not information that is not needed using a red tag.activity. and the work area are clean. identify.longer. Sustain Use control plans and deploy continuous improvement teams.distractions. Shine Ensure all tools. 5S and Standardized Work 5S Category 1. which.examples.. office.waste. equipment. if.to.current.include. facilitates.clean. and that the work is performed the same way every time. availability.materials. Ensure products are designed using standardized components and manufacturing processes. environment.cause.as. to. imilar.such. In.office. miscellaneous. leaking.employees. check.A. is.white...example.complete.any..

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

of.workflow. and.work.applicable.other..is.information. balanced.takt.work.are.particular.made..capacity.have. tasks.global.capacity.stations.480.second.. identify. demand.minutes..anywhere.step.key.when.adequate.global.helpful.the. that.that.in. to.(IT).should.added.in.to.8. time.On. eight.. operation..is.an. the. takt.interfaces. machines.to.in..be. of.dynamically.increase. IT.process. time.IT.analysis.analyzed.at.stations.one.to.per.balanced..or.flow. requirements.then..Balanced.divided.per. not..the.of.a. if.other. in.the.and.global.of.takt.as.to. setups.(NVA).common.of.in.84  ◾  Lean Six Sigma for the Office As.eliminating.been..non-value-adding.very.process.moved.in.completed.discussed.then. This.functional. no.or. has.information. cycle.calculated. that.the.linking.(OR).similar.units.overloaded.relative.. practice.be..the. process.production.through.content.a.demand..completed..or.how.day. available.must.be.queuing. Balance Material Flow Once.an.. system’s.it. a.products. takt.a.degree.material...their. are.and.minutes.types.the.or.OR.provide.situation.an.and.office. its.keep.services.time.the.systems.is.analysis.waiting.first.show.be.these.the.reduce. no.virtual.materials..work.work.automation.work.to.by.its. l .in.Also. map.of.unit. at.time.available. linked. have.time. or.the.ayout.removed. to.. In..have.it.After.units. per.analyses.area.is. But.will..environment.improving.excess.As.capacity.if. operational.time.or. is.a.one.time.of.the.are.which. operation. to..these.using.(8.60.directly.and.The.across.of.in. an.hours. this.second. over-.of. time.but.one.earlier.which. information.equipment.inspections. interruption.office.including. to..demand.floor..in. the.more.an.per-unit. is.information...complexity.process. there.completed. as. created.the.relative.methods.9.. standardized.systems.available.a.a.cost. (VA).layout.minutes. eight.. In. a.hand.3.these.required.people.per.similar.rate.environment.or.must.in.the.its. or.per.value-adding.stations. an..useful.almost. As.production.environments. process.Figure.day. example.layout. operations.IT.the.can.of. time. flow.met.are. and.time.is. another. example..these.hour). is..due.concept.system.are..example.and.technology. group.systems.must.those.and.As.underloaded. comprise.tasks. workflow.operations. of.by.of. Every.in.office.. flowing. to.even.system.people.in. implies. is.methods.hour.types.in.world. without.an.a.number.of..means.minutes. the.research.such. hours.to. work.goal. As.. one. external. information.principles. of.required. day.production. allowed..tasks.this.As..80.reasonable..unit. words.a.materials.if.is.is.chapter. the. system’s.improvements.such.immediately.per-unit..work.every. capacity. been.. theory. work.work.is.the.time.an. multiplied.subsystems.station.at.varies. a.unnecessary.6.takt.operations.analyzing. . work.that. impacts.is.analysis..takt.is.the.additional.3. station.in.by. a.work.practice. station.This.. system’s.OR.key.shown. that.minimum.or.be.types.can.calculated. system’s. time.workers.operation.and. has. operations. significant. operation.Figures.per..physical. six. implies.and.types..designing..example. a.are.of.every.be.unit..within.of. as.calculated.However. exceed.6.to. are.3. and. from.and. still. related.high.by. exceeds.as.The. This.a. underloading.

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

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

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

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

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

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

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

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

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

Daniel.York:. Microsoft. Agile project management with scrum.Productivity.Schuster.New.Lean Six Sigma Basics  ◾  107 Ken. Lean thinking—Banish waste and create wealth in your organization.New. Professional. 1996. T.... WA:. James.Simon. P... Rajan..York:. and... 2003.Press..Suri. Womack.. Jones. Redmond. Schwaber. ...Quick response manufacturing—A companywide approach to reducing lead times.&.1998.

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

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

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announcements.In.. tape.that.charts.each.off...other.activities.aids.event.have.on.not.. events.its. area.subteams.content.forms.may.their.help. materials.In. have. process.work.off.is..discussing.complete.support.aware.5S. materials. which.is. an.team. must.remain.the.utilities.Flip.the.support.will.communications.when.associated.drawing.conference.breakout.other.is.be.must.face-to-face.that.communicate.other. in.for.the. be.should. held...information. situations.in.be.from.tools. making. team.On.as.useful.the.area. meeting. a.to.the.example. materials.earlier.communicated.its.copiers.hand.partitions.as. and. work.Kaizen.up. environments.should.routine.and.work.fact.messages...work.reside. or.each.. by.people.in.and. Kaizen.to. office.and. work.will.be.is.those.is. manufacturing.support.well.. and.been.in..and. usually.in.This.enable..among.an.notes. separate.of.people.of..or...be..impact..or.Kaizen. Setting Up Flip Charts and Organizing Other Materials It.a.as..reports.the. the..support.These.relationships.and..may. because.(IT).as.It.be.by.person..activities.similar. e-mails.should.group.of.methods.will.in.message.. formally. communicating..organizational.equipment. and.activities..set. are.printers. areas.to. presentations. required.work..simpler.this.systems.This.However. in.. may..old.marked.on.be.others.communication..it.flip.Regardless.the.and.consistent. environments.that.because. complexity..in.logistics.with.newsletters..and.tools.other..a.areas.As.in.removed. using.in..others.is.and.local.As.identify.when.of.mentioned.must.well.owner. used.important.set. off.as.off.process.rope. marked. will. also.these. teams. can.members.to.124  ◾  Lean Six Sigma for the Office Communicating the Event Communication.may. to.of.the. include. sticky. particular.formats.area. that. in.well..be. messages.communicate..easily. event. organizational. marked. resources. will.methods. in.be. off. Highly. complicated.supporting.a. that..other.personnel. area.not.pictures.each...reasons.intended.layout.organization.and.an.several. will..Kaizen.activities.has.situations. work.example.in. may. which. be.best.Other.format.Event.and.equipment.workflows.their. Marking Areas for the Event In..an...it.other..calls. equipment.example. a.to..activities. require.order.require.its. significant..the.materials.there.work.noted.or.this.isolated. be. management.area.team.various.communication.area.emotional..as.the.charts.the.for.to.a.safety.on.of.useful.However. and....breakout.need.visible.improves. notes.easily...the.through.a.from.moved. Kaizen. .for.and.understand.rooms.team.to..as.be.work.communication.may..be.to.the.similar.. equipment.be.. the. seldom.E-mails.simple. and. messages. office.planning.Internet. should..that. These. sorting.marked.occur...within.planned.. which.larger. their.materials.team. newsletters.information. areas.and.was.chapter.be.a.vary.what.events. include.carefully.depending.marked.service..As.work.discussion.will. is.important.that.meetings.works.

the. important.take..an.meetings. organizations.not. communicating.modified. between.Lean.in. particularly.deployment.. communication.simple. changes.recipients.teams. the. approach.letter.the.of. As you know..However.be.a. multicultural.the.Key.team’s. than.enormous. event..country.Kaizen Event Planning  ◾  125 Date From: Subject: To: Event Leader Upcoming Kaizen Event in Area TBD Distribution of Impacted People Hello Everyone..to.communication.a.had.could.at.consulted.years.the.few.I.the.Kaizen.time.leader. difficult.major. Kaizen eent Communication letter Kaizen.highly.process.logistical.deploy.of.the.communication. since it has high levels of scrap and rework that are costing our facility $TBD annually. Recall.resources.India.organization.differences.make.the.from.had. we have identified several areas within our facility that would benefit from application of the Lean Six Sigma tools and methods.and.Sigma.where.is.will..to. Area TBD is the first area we have targeted for improvement.a..benefits.of.Six.any. were.teams.Korea.given.who.speak.reason...suit...because.of.event..difficult.letters. and.team. standardized. required. letters.needs.well.will.distances.be.communication. qualitative.does. updates. quantitative.were.for.Singapore.specific.which. letter.part.. each.and.2 Kaizen eent communication letter.held.together..and.provides.As.the.Figure.a.across.China.a. We will need your combined support to make this five-day event a success.weekly.zones. formats.the.be..may.in.. teams. are.team. To.countries.mutually.and..2. . country.a.who.several.bringing.as. agreed-upon.the.is.standardized.your. have.Throughout..ago. in.the. I will be meeting with each of you over the next several days to discuss how we should prepare for this event.stages.include.it.example.if.Communication. appear..expected.from. event.announcement. from. the.4.The. teams. team. dispersed.the.conference.members.elements.we.a.for..letter.and...should.early. because. geographically. their.diverse.interpret. to. communication.of.between.a.its.. country.. several. Regards.with.event.that..members. business. Event Leader Figure 4.Japan. more. international. process.between.support.Asian.great. we were recently trained to identify and eliminate root causes for poor operational performance.an. facilitate.English. own. This.can. time.as. However. reporting.have.call.to. different. in.

was..event..take.to.126  ◾  Lean Six Sigma for the Office After..schedule.team.methods. and.meeting. 3.delivered.an.the.schedule.and.(similar. Assign people to specific work streams. analyze. People return with data collection forms completed. and. and.in.completed. basic.integral. A. 3.management.place. 5S opportunities. 5.agenda.for.provides.their.English. 4.on.as. meeting. 3. data.forum. operational.b.of.of.is.that. completed.reviews.shown..a.is.and. to. Mistake-proofing opportunities.review. workflows.start.meeting.the. and. team. Building value stream maps.discuss. a. conducted.members.the.2 Kaizen eent Kickoff Agenda 1.this.upcoming. that.benefits.take. Kickoff meeting.regarding..called.a. .to. which.were.may.prior.. Lean basics. has.members. an. ensures.work. will.methods.kickoff.is.to.and.2). a.4..projects.black. team’s. Analyzing value steam maps.be. of. 4. collected.. 3.c. from. that.During.a.of. Sigma.various. in.The.ask. Kaizen.starting.also. and key metric information is put onto the value stream map.what.the.training. 4. collect. to.multicultural.opportunity..business. financial.enhanced.improvement. a.team. everyone.to.communication.the.a.this.Kaizen. 2.Korean.process.assessments. is. People go out into the process to collect information on key metrics and the management reports and daily forms that are used in the process.begins.belt. team.Japanese. 4.simultaneous. their.c.the.using.local. Changing the process.of.a.. planned.Good.roles.taught. data. a..and. Lead time reduction.event. process.kickoff.meeting.kickoff. other.will.e. event. Learn how to build value stream maps.countries. in.group.operational. that.a. that.A.review.event..tools.is.their. manner. Calculating takt time. one.in. Lean.and.purpose.The.to. discuss.training. any. meeting. 4.over.also.questions.This.understanding. their.that.participants.team..translation.days. methods. table 4.important.tools.a. tools.responsibilities.. 4. been.greatly. has.It..this..next.provided. Kaizen eent Kickoff Agenda At.several.the.the.d. Six. kickoff. standardized.with. in.activities..and.good.place.productivity.b.and.team.significant.Table. help.the.

information.operational.is.to.as.Kaizen.is.Also.poor..include.good.the.responsibilities.the.advance.workflow.work.by.also.from..information.prefer.especially.time.fast.well..be...a.reports.be. then.needs.to.there.roles..a.As.and.them.. a.assigned.they.takt. is. team.Roles.. and. discussed..information-tracking. time.but. advance.tools.to.a. by.skills.data.This.this. create. and.subteams.simple.as.if.this.example.or.transferred..either.performance. in.. days.be.were.VSM.In. the.be..scheduled.However.than.in.addition. particularly.in. team.as.acceptable.videoconference.to.if. metrics.team’s.these.. through.be. and.event.team.Important.curve.conducting.methods.of.and.value.and.This.a.specific.subteam.of. when.a.gathered.information.include.subject.true.or.duplicated.one.team.take.procedures..a.discussed.stream.process..may. Advance..inspection.the..Roles..defined. locations.This.4.in.floor.expert.and.management.created.responsibilities.minimum.. This.between.in.their.nine..to. were.several.responsibilities.f.responsibilities.long. their. workflows.different.in.layout.then.essential.floor. includes.layout. process.a..used.a..people. if.information.team.through.activities.duplicate. leader.maps.floor.of.map.process. area.map.and..is.meeting.is.at.5S.has...3.but. roles.some. tools. members.facilitator.and.2.and. operations.a.the.show. at.complex. place.during.roles.involved..1.team.puts.1.equipment.of. taking.the.focused.Chapter.a.process.been.in.should.process..a.have. few.be. relationships.on.Kaizen. on.also.the.Also.layouts..kickoff. having.should.within.team. role.then.be.may.event..and.learning.a.members.highly.materials.a.build.people.VSM.event.(VSM). functional.listed.systems.of.begins. members..the.roles.to.also. several..map.a. focused.spoken..varies.clearly. key.a.flow.translators.are..on. often. event.mistake.process. facilitators.is. process.the.calculation.similar.in. important.leader. information..an.depending.may.prerequisite.matter. automated.a.. videoconferencing. team’s.key.in.the.an.Some.event’s. .is. from.process.databases.spatial. is.subteams.across.Kaizen Event Planning  ◾  127 in.to.process. used.may. meeting.operations.and.have. only.collection.3.been. an.it..3.summary. interrelated.the.. a.forms.requires. However..process. advance.team.such.activities.accessed.over.Section.a.data..that.originally.chapter.it.proofing.roles.will. Conducting the eent Bring Team Together to Discuss Roles and Responsibilities Table.rotated. and.be..and.show.them..organization.major. Having. Once.languages.flexible.if. a..reports.a..assigned.if.local.preliminary.Table.discussed.may. and.There..which.should.determined..collect.a.was. team.key.executing.and.obtain.responsibilities.construct.In.operational.to.during..Once.and.A.a. responsibilities.to.if.and.if.on.to. remote.information.of.type. and. important. to.has..may.establish.information.are.must.assignment.listed.an.workflow.prior.to.on.of.place. Chapter.the. defined.it. work.examples.that.models.should.a...created. the.take.financial. different.are.

3 2. be.suppliers.although.and.128  ◾  Lean Six Sigma for the Office table 4. Change the process according to a prioritization listing. i.its.a. example.to. event. Collect data at every operation relevant to: 1.in.goals.no.a.. Capacity (units/minute).impact. This.type.discussion. activities. e.sensitive. use.may.uncommon.team.aside.of. . h.had.workflows. not. Conduct the Kaizen eent a. Facilitate to ensure full participation of the team.and..training.have.not.is.set. b. impact.have.usually.or. Conduct training as required.information..is.an.information. formal.relative. an.be.require..may.or.not.objectives.to. Analyze all data and develop prioritized improvement ideas.audience-specific. Apply 5S and mistake-proofing methods.and. office. improvements.should. and.Kaizen.may.usually. Discuss financial and operational objectives of Kaizen event.because..process.resource.a.hours.people..information.Kaizen.they.Lean.have.methods.has.first.customers. g.or. Scrap %.if.goals.major.differ. and.of.Also. the. 5. Kaizen..know.presentations. As.the. requirements. events. d .and. tools.is. that. Bring team together to discuss roles and responsibilities.and.provided.be. 7..then.of. d.a.of. iscussion. Discuss Operational and Financial Objectives of the Kaizen Event The.participants.of.Sigma. 2.objectives.of...also.operational.the. Rework%.benefits. true.financial.As.event. c. 9.is. VA/NVA/BVA.. a. methods.expected. Create detailed value stream maps and layouts of the process workflow.on.events. simple.few.organization.in. significantly..an.result.management.event.Six.objectives.an. Setup time (minutes). common. Production rate (units/minute) or cycle time.in.training.important..similar.If..a. 8.this.key. f.will. Downtime %. Conduct Team Training as Required Team.major.day. for. 3. Floor area. 6.train. Inventory (units in queue). 4. those. However.some.touch.Kaizen.financial. this.This.to.be.in-depth.may.on.risks. will.

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

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

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

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

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

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.

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

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

a.work.Data Collection and Analysis  ◾  143 c .activities.mistake.some.highly.over.may.in.Six.obvious.systems.mapping.tasks.means.their.that.of. using.discuss.and.similar.standardized.data.been.deployment.Lean.conference. ommon.necessary.will.workflows.that.of.mentioned.very. collection.methods.fact.environment.for.is.We.types.. as.materials.studied.intranet.a. processes. that. if..concept.many.strategies.. be.a.and.data. work. into.part.is.methods.will.chapter. task..should.system.high.from.industrial.conducting.people.4..work.work. systems.was.engineering.team.collect. flowed.However.service.focus.a.IT. conditions.be..a. functional.in. operational.analysis. at.service. Internet.similar. ollection. high-level.tools.and.be.Chapter.can.will. higher. of..completion.suppliers. an.this.is.VSM.and.After.in.calls.around. through. down.will.collection. why. machines.common.4.5.and.if.in.systems.without.their.include.useful.process.(VSM). its.work.This.4.those.and.Several.time. However.manufacturing.live. may.information. not.any. c .4. transactional. meetings.format.a. Sigma. this.methods.within.these...that.processes.in. and.more.across... this.task.Lean.operational.more.those.Also.work. meetings.and. been.and.manner.relatively.to.always.value.usually. Service. their.what.In.words.higher..in.see.improvements.unique..workflow.These.usually. and.a.this...the.are.activities.and.is. operational.the.present. activities.can.Six. chain. used..metrics.meetings..sustained.usually. major.in. has.manufacturing.has.of.. face-to-face.chapter.that.has.on...examples.is.controlled.reoccurring.associated..we. we..be. cycle.discussed.and.data. organizational. aligned...Complicating.analysis. work.several.In. then.. statement.do.of.similar.also.true.its... and..easy.larger. yields.operational.manual.completes.deployment.Figure.a. longer..a.seen.visible.team. components.content.a.analyze. be.they.appear.several.It.Kaizen. team.the.but.tools.using.analysis.in.this. topics.an.having.be.countries.In.shown..to..if..were.office..customers.may.to..variation.were.trained. detail.to.include.Although.see.difficult.major. at.highly.integrated.to.First.teams. can.are. broken.its. useful..analysis. and. workflows.in.the.others. this.original. level.to.and.process.and..Kaizen.and..a.Six.manufacturing.fact.team.the.the. while....stationary.in. these.VSM.processes.. information.and..an.1. its.deployed..deployments.mapped.a.in.result. value Stream mapping In. properly. and.using. a. Sigma..makes.be.from. Table..a.work.be.each.tools.studied.new..modification.be.tasks.supply.as. will.and.are..it.facilitate.operational. off-site.Table. deployed.enable.types.to.observer.over.workers.integrated.where.This.These.found.are.methods.the.. straightforward. However. analyzed.methods.analytical.which.analysis. must.long.their.its.other.analyzed.activities.can. relatively. cost. level.. VSM.within..because. times.systems.can. and. very. to.1.financial.in.methods.been. than.service. not.require.collection. .operational.computer.and.conditions..Sigma.repetitive.well-established.globally. on-site.work. finally..world. lower.In. be.is.under.uses. data.among. and.Lean.Lean. or. VSM.difficult.manufacturing.tasks.are.proofed.Also.tasks.and..stream.and.transactions.characterized.

This. of.supply.VSM.charters.chapter.a.Figure. Analyze the Value Stream Map for Improvement Opportunities Value Stream Mapping 1.1.this. the.that.chain.shows. to.a.of.organization’s.and. of. The value stream map is a visual model of the process including all key operational metrics.be..of.. will. detail.create.in.objective.5. specific. Prepare for the Value Stream Mapping (VSM) Workshop 2.workflow.will. workshop.to.. result.three. 6.a. process.is. our.across. Identify areas for operational improvements. to..In. iscuss. 4. The.to. a. charter.major. be. we.breakdowns.used.creating.by. was.words. 3. team.Table.project. VSM. In.charters. step..our.. Kaizen. a.and.context. .important. create.other.process.it. 5. level. focus.a.defined.situations. 3. advantages.VSMs. discussion.In.In.linked.will. been. 2. for. d .statement. Understand key process input variables (KPIVs) and their effect on key process output variables (KPOVs). project. charters. chain. prepare. the.project.strategically. Identify rework and non-value-adding (NVA) operations.VSM.these.problem. to. Identify process simplification opportunities..VSM.in.higher-level.be. first.detailed. as.are. major.1. focus.the. when.shown.at.a.that. a. a.1 three major steps to creating a alue stream map..several.to. at.well.an.of.can.. created.more.. As.. Construct the Value Stream Map (VSM) Figure 5.be. described.5.assumption. have.charter’s.maps.steps.144  ◾  Lean Six Sigma for the Office table 5. workflow.sequential.supply.lower.project.eliminate.levels.project. Provide process documentation.and. is. on.1 Why Create a value Stream map? 1.

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

advantage.local..brown.team. Figures.benefits. relative.team.and.correspond.and.and. or defects.to.it.be.event.project’s.to.to.a.5. addition. and.constructed. that.3. is. in.are.and.owners.a.. 4.important.informational.its.complete.anticipated. excess travel.VSM...a.event.ensure.data. mistake proofing. by. it.activities. by.can.method. reports.and.work.collection.control. and. including a responsibility matrix to migrate to the improved process.In.to.will.VSM.an.and. excess movement.A. it..also. brown-paper.a.a.to. A.within.prior.will. Analyze the value stream map for process waste such as overproduction.has. 5.very.to.map.will..help..another.stored.Also..paper. Identify and prioritize improvements using 5S. and. key. Develop controls to ensure the improved process remains in a stable state and in control.a.also.its.a.construct. A.schedule.team.with.of.used.moved. and other Lean methods.the. of.overall.is.quickly. are.detail.an.can.at. available.its.business.completed. 3.Any.work.members. brown-paper. Important.forms..” 8.be. excess inventory. Use a visual control system to monitor and continuously improve the process over time.work.a. is. of.is. of.build.resources.. charter.a.5.necessary.the.brown. Ensure the project’s problem statement and objectives are well defined.documentation.Kaizen.interactive. Ensure that the level of mapping detail provides information sufficient to analyze and eliminate the problem.of..attached. exercise..various.analysis.execution. 7.supporting.team.on. Analyze the value stream map for non-value-adding (NVA) operations and rework loops. .VSM. major.to.rolled.VSM. This.sufficient. collection. Select team members based on the project’s process boundaries using a Supplier-Input-Process-Output-Customer (SIPOC) or similar method.activities. Create a modified value stream map of the improved process and use it a guide to the process workflow’s “future state.documents.a.is.2.analysis. that.process. 10.146  ◾  Lean Six Sigma for the Office table 5.location.project.gathered. Develop a simple project plan.a..Kaizen.been. 5. Analyze the value stream map for long cycle times and capacity constraints including the system’s bottleneck resource. 4.exercise. waiting. a.because.team.a.deployment. examples. 6.level.improve.team. a.3. metrics.commonly.on.Once. inefficient production.And. 2.or.up.brown-paper. highly. to. operational.focus.and.where.will.as.activities... a.similar.a.a..workshop.hands-on.to.paper. In. data. Table..process.leaders.the. activity.this. 9.2  10 requirements necessary for an effectie value Stream map 1.tight.are.quantify. characteristics.Kaizen. shown. exercise. be.

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

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changes.0 21.in.0 100. baseline.to.of.000 5.0 20.0 8.000 3.several.including.mistake.2 26.0 25.job.0 24.0 25.000 18.0 52..5.15.increases.0 30.such. Profit/ Loss k. the. are.collection. . and. information. Returned Goods Expense/ Incidents g.0 28.0 2.rework.example.0 18.and. The. Inventory Efficiency (Turns) l.5 87.0 63.3 63.0 12. that.0 50.Figure.was.0 10.0 1.0 16.also.0 24.1 78. Schedule Changes q.office.0 19.8.a.1 75.. a. First Pass Yield (Rolled Throughput Yield-RTY) j.000 10.0 14.we.simplification.to.0 13.a.issues.0 17.0 18.0 33.0 18..Figure.0 25.0 20.0 74.called.same.good..classifications.5 1.0 27.0 5.in.3.that..be. in.application.000 5.specific.percentage.Figure.0 69.a.0 20.0 19. impact.An..0 28.As. been.of. an.000 10.“frequent. collection.approach.percent.9 56.5.be.as.VA.15.0 27.0 15.0 15.changes.0 68. because. is.0 65. information.environments.0 19.0 16.process. time.process. schedule.9 17. Value Adding % 2.”.0 29.of. Overdue Backlogs r.5.lists. either.a. an.projects.the.source.0 13. using.and.in.example.Figure.000 10. both. Production Rate (Units/Time) or Operation Cycle Time 3.several.provide. Lead Time o.percent.audit. initial.0 70.classic.0 62.7. a.within. condition.0 15.0 2.shown. Forecast Accuracy n..their. performance measurements (similar to Figure 3.from.a.implies. perspective.7 85.will.137.0 20. several.additional.000 10.at. On-Time Supplier Delivery m.will.using.team..in. immediately.0 1.0 23.0 17.0 16.be.1 62. non-value-adding.0 21. Data Accuracy s.0 23.0 64.9 14. Scrap% 4.Figure.of.1 1.time. Number of Problem-Solving Teams c.0 55.As.0 1.shown.0 30.measurement.0 22.accounts.issues.methods.this.8 1.increases. Total Process Workflow Cycle Time b. There.000 5.total.other.one.000 5.of.. Figure.0 29.0 14.possible.metric. quality.0 18.but.5.a.process.the.for. have.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.. from.0 18.5. through.metrics.5.additional..two.0 19.improvements..template.process. operational.800 3.reduced.0 24.done.8.0 16.standardization.performance.be.scrap.use.can.how.800 3.the.7 1.50 420 Date: July Auditor: Joe Takt Time: 8.number.whose.0 54.0 25.0 12.a. to.0 63. Downtime% 6..Figure.advanced.7. is.time.function.0 15. to.conditions. Annualized Savings h. Warranty Expense/ Incidents f. Number Employee Suggestions e.level. data.8.4 58.0 18.0 26.template.0 2.0 55.0 16.0 17.3 92.environments.(VA).time. using.in.The.0 21.0 17.000 16.7.0 16.. a.0 72.that.is. shown.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 1.0 73. methods.0 2. because. Setup Time (Minutes) 8.lists.of.to.0 16.1 76. other.is.tools..chapter. Kaizen.0 55. useful.several.percent.demonstrate.advantage.800 3.0 63.negatively. projects.8 100.5.an.may. event.in.of.0 11.improved.000 5.the.1 1.other.office.analysis.0 21.a.on.0 66.3 60.7.2 1.0 9.0 16.can.percentages.of.those.list.prioritize.4 30.a.payable.that..identify. Capacity (Units/Time) 7.3 1.0 60.0 13.to.to.5 24.7.depend.2 1.in.analysis.the. As.0 19.any.800 Week 9 Week 1 Week 2 Week 3 Week 4 17.Kaizen.industry..be.0 14.0 19.4).contained.could.team.000 10.of. increased. proofing.of.efforts.or.1 24.1 1.categories. Excess & Inventory 15.This.initial.detailed.in. Inventory (Units in Queue) 9. important..more.red-flag.0 21.0 20.in. Floor Area Additional Metrics (Depending on Industry or Function) a.order. Material Availability t..7 4.analytical. follow-up.Later.the. example.and.0 13.This.a.0 24.audit.red-flag. Rework% 5.can. 85.through.0 15.6 27.5.Kaizen.9 72.commonly.value-adding.which.a.combination.0 1.0 20. shown.0 28.data.job. it.4 31.to.. (NVA).the.shows. of.0 14. Percentage Scheduled Jobs Missed i.5 81.0 17.Figure.shows. be.2 1..0 10.75 50 $1.0 22.similar. that.9 30.value-adding. as.7 99. or.This.17. Number of Customer Complaints d.Lean.process. Unplanned Orders p.1 6575 Average 15% 26% -27% -17% -14% 42% -17% -30% -34% Figure 5.the.

00 $30.(VA).analyze. The.. the.for.situations.increase.will.excellent.or.Figure.value-adding.and. is.. 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 17.00 $52..Figure.This.. well.for.9.due.In.00 $52. .shown.occur.the.a.50 $0... Figure 5. reasons.accounts.investigate.to.be. Figure.greater.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. and. New employee not familiar with tasks.improvement. important.and.workflow.operations..into.continues.causes.lead.or.Figure.lack.projects.to.cost.time.its.due. metrics..of.00 $7.activities. broken.lead.00 $19.137.root.can.50 $0.00 $0. Employees did not have information to perform job.00 $10.5.be.50 $0.may.8.25 $15.occurrence.also.then.error.a.reduce.the.the. Job was rushed due to poor planning..expediting.50 $21.50 47% Jobs could not be completed due to incomplete information.changes. useful.as. breakdowns.requests.00 $0. As.used.reduce. time.its.to.the.50 $0.time.team.and. lower-level. Had to call supplier several times.also. Employees confused as to work task. of.causes. shown. example..changes.shown. conditions.down.Kaizen.occur.miscommunication.a. into.manufacturing. issues. operation. Jobs have been pending for weeks. be.00 $75.of.percentage.wasted.in. Jobs required three signatures.a.template.8 process audit worksheet.waste.The. Jobs for these suppliers are run once per year.issues. other.should.within. spent.be..of.to. and.time.75 $10. to.their.the.75 Date: July 50 Auditor: Joe $1. Jobs required several sequential operations. payable. analyze.within.serve.within. root.increase. red-flag.template.of.9. elimination.The.this.will.level.5 10.Kaizen.sources..in.a. shown.a.materials.the.8. increase.00 $15.. Jobs were released at the end of the shift.50 $0.in.these.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. Work tasks that can be eliminated form the process.office. or.00 $22.issues.schedule. in. the.time.00 $75.and.the.a. modified.causes.of...operations.process.probability.the.. every.of. its.00 $13.5. These.of. down.to.50 $9.drill.of.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. other.50 $79.at.process.process.may.as.customer.factors. at.“standard.5.can.50 Takt Time: 8.the. Work procedures can be made more efficient.5.myriad.processes. Jobs had to be walked to another department. Lack of clarity regarding start of invoice. also.workflow.will..due.context.the.commonly. machine.analysis”.teams.process.eliminate.a.either.team.root.50 $535. In. number.operational.template.will. In.as.

long..an.good..payable.non-value-adding. major. 357.the.waiting..event.This.5.Figure.down.the.issue.of.are. from.a.place.total. more.9% 11.analysis”.estimated.several.as.9.Kaizen.percentages.broken.priority.would. of.the.are.within.operations.performance. .Perhaps. reasons.a.time.similar.2.either.357. 25.It.of.of.percent.10.75 50 $1.focus..was.can. non-value-adding.one. for.3% 45. process..be.time..discussion.in.across.a..4% Figure 5.information.already.that.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.accounts.is.a.these.data.8.or.of.first. Kaizen.time.template.be.minutes.Figure.categories..of. cycle..represents.longer-term.and.which... to. the.These.waiting.to.focus.time.9.the.estimate.percent.3% 10.represents.analysis. shown.process.“summary.accounts.in..just.jobs.a.percent..useful.minutes.In.2% 16 44 37 4.shows.summarize. or. be.event. time.to.As.a.may.level.our.5. the..45.at.how.be.team. time.a.total.Recall.time.workflow.of.for. of.in.ensure.to.waste.relative.very.also.the.the.85.9 Waste analysis by operation. should.To..job.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.process.operations.50 420 Time Due to Defects Date: July Auditor: Joe Takt Time: 8.in.1.5% 12.5.focus. within.137. the.lower.baseline.gather.3.of.to.also.9..the.the.performance.process.the.on..if. time.equated.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.reflective.this.5.which.Figure. one.wasted.example.approximately.Figure.the. the. identify.non-value-adding.total.part.components.

to.systems.structured..an.diverse.Kaizen.managers. major.data.or.associated.actions.Using.0% 0 0 0 0 0 0 0 0 Figure 5.5.just..standardized.information.commonly. their. an.are.manufacturing. 5.percentages.flow.shadowing.137.and. or.is. and.on.shadowing.as.this.an. associated.office.is.the..hours.analysis. spent.tasks.useful.within.As..an.10 Summary of waste analysis for seeral jobs.by.only.for.job. more..characterized..levels. adapted.several. work.will.work.As. is.example.this. information.have.activities.the. .the.words. his.do.analyst.. it.and.the.places.over. that.of. easily.The. is.time.2% 5 1.of...NVA.proximity.time.examples.event. method.at.improvement.an...employee.an.a. directly.used.professionals.operational.improve.is.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..are.and.extends.attending.analysis.situations.of.be. similar.with.their.information.8.example.work. or.jobs.a.days.work.major..Quantitative.nonvalue-adding.procedural.the.noted.beginning..work.. performing.Figure. also.increments.tasks.Typically.cause.during.process.facilitates.other.In.because.and.shadowing.analyses.standardized.by.require.it..make.assessment.useful.data. It..to. tasks.is.. number. collection.sequences.complicated.templates.operational.greater.which.3% 164 45...may..these.20.event.over. process..required.shadowing.. to. reports.4% 0 357 100.time.methodology. complex.process.or..use.directly.tasks.linked.effective.amount.involving.50 420 Date: July Auditor: Joe Takt Time: 8.collection.industries.workers. job. include.meetings.collection.job..time.of.very.by.is. In..large.4% 16 4. in.(NVA). Job.by.observer.5% 44 12.it.employee..where. in.a.the.result.working.or.in..method.to.at.template. be.may.than.occur.such.changes.root.. shown.Typical.be. to.a.days.may.but.“job.useful.time..used.of. job. shadowing.show.job.job.from.within.repeatable.are. except.of.and.work.because.team.working..and.possible..often.This. information.final.should. templates. spent.in.at.track. to.who.15-minute.not. tasks.Most.both.with..processes.method. not. payable.with.comment. the. is.However.when.Then. spends.Kaizen.capture.office.of.the.in.are.. more.records.service.is. complex..3% 37 10.of.tasks.work.on. Figures.heavy.extensive.a.that.a..the. related.a.time.inordinate.may.a.several.computer.to.which.are.that.that.of. useful.9% 40 11.9.is.this.an.be.an.work.process.more.and.. her.in.it.activity.not.75 50 $1.As.simple.11.shown.repetitively.professionals.is.not.context. the.5.an.an.components.calculated.work.tasks.It.electronically.have. data.that.and.discussed.available.meetings.other.In.flow.time.shadowing”.those. description.employee.to.components.found.using.is.useful.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.work.percentages.analyze.analyze. another. and.

shots. and..it. materials.environment.course.this.is.11 Job shadowing worksheet.over.diagram.used. to.extent.adapted.of.and.5.is.shows..collection.and.50 420 Observations Date: July Auditor: Joe Takt Time: 8.work.rearrange.137.the. provided.and.information.method.is.and.to.result.in.. that.move.work.templates..examples.a.templates. to.operations.also.tasks.this.is.flows.concept.their.stations.operations.forth. practice.It. co-locate. .But..back.an.screen.shown.during.reports. work.possible.or.method.spaghetti. that. by.work..tools..the.office.collect.material.a.by.analyst.data.used.apparent.also.an.or.in.office.movement.. common.4 Minutes/Unit (50 units in 420 Minutes) Figure 5. spaghetti.common. the.12.or. sequence.template.an.. greatest. degree.may.can.as. efficiently.known.Figure.Using. teams.spaghetti.analysis.information.is.of.in. A. to. addition. interact.However. possible.. information.change.collection.to.quantitative.between. should.well.it. be..data.The.employees. minimizing..collecting..example. a.tasks.the.work.easily.between.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.a..data.diagram.. high.could. various.their.of..other.of.75 50 $1.computer.of.spatial. A.relationships.daily.In. to.movement.cubicles.be.manufacturing. diagram. a. it.

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.

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

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and.outlier.process..below. shown.data.75th.dispersion.sample.are.information.“lost.the. minimum.75. box. is.asterisk.of.into.the. the.of.variables. are. also.percent.represents. maximum.of.is.the.each.down.location.analysis.rest.the.be. in.50.17..be. data.relative.a. minus. and.data.the.sample.shown.categories.9.of.applied.the.at.has.advanced.by. plot. calculated.data.a.see.We. box. But..a.that. Figure.values.formula.category..calculated.below.. useful.central.In.of..higher.in.percent.are.These.5.the.5.any..of. a.17..a. manner.as. plot. .Data Collection and Analysis  ◾  169 Pareto Chart of Process Breakdowns 90 80 70 60 50 40 30 20 10 0 100 80 60 40 20 0 Percent Process Breakdowns es rk ls rk g b n n g es ds es er iti o ro o tin Jo tio tio in m r r th iv W nt w ai a a a in i da du O ct ch Co Re W s to rdin orm Tra le T tan oce A e o f f yc S r g at e ng o In k o C of d P in B ssiv ha ed C k of Lac ong ack gne dd ce C t c A L L esi Ex nt mi La eD lu ue Li Va eq rly Fr oo on P N Count Count Percent Cum % 15 10 10 10 10 5 5 4 4 4 3 3 9 16 11 11 11 11 5 5 4 4 4 3 3 10 16 27 38 49 60 65 71 75 79 84 87 90 100 Figure 5.and.well. this. and. An.percentile.category.different.time. is.17. which.time.In.50th..see.say..point.the.the. in.common.the.a.broken..dispersion.50. range.at.is. below.in.of.it.a.this.. very.percent.which.represented.several.inventory.lost.continuous.were.can.outliers. set. box.using.of.to.variation.above. tool. the.maximum.“excess.point.graph.percentile.variable.75th.at.Box.”.analysis..than..as.in.the.that.that.tool. In.. another.is.other. of.25th. Box plot The.9).categories..of.that.of.percentile.in.percent. the. in.relative.shown.is.the.“waiting”. as. the.sample.25th.The.an.provides.type..other.that.graph. has.also.median.in.having. shown.is.a.as.the.5.are.percentile.statistical.plot. which.box.are.. analytical.median.marked.analytical. Finally. more.a.percentile.may. scale.on.example.the. in.Figure.a.set.discrete.sample.the.to.data.methods.5.values.can.16 pareto chart (data from Figure 5.can...from.an. displayed.is. be.from.are.“waiting”.data.sample.of.a.minimum..median..Figure.various.also..the.are.which. A.which. comparative.A.additional.a.the.include. plots.25.data.a..a.Also.50th.a.same. can. value.points. Several.shows.A. higher.point..displayed.values..we.plots.a.example.and.to.or.set.continuous.as.both.percentile.Figure.point.provides.the.values..time”.the. and.

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Data Collection and Analysis  ◾  171 Scatter Plot of Production Rate and Capacity Versus Rework Percentage 100 90 Units/Shift 80 70 60 50 15 20 25 30 Rework Percentage 35 Variable 2. .19 time series graph (data from Figure 5. Production Rate (Units/Time) 6. Capacity (Units/Time) Time Figure 5. Time Series Plot of Production Rate and Capacity 100 90 Units/Shift 80 70 60 50 W ee k 1 W ee k 3 W ee k 5 W ee k 7 W ee k 9 W ee k 11 W ee k 13 W ee k 15 Variable 2.18 Scatter plot (data from Figure 5.7). Production Rate (Units/Shift) 6. Capacity (Units/Shift) Figure 5.7).

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700 $42.900 $38.100 A B C D E F Count Percentange Project Estimated Impact** Canceled Order Schedule Change Late Deliveries Large Lot Size Missing Materials Quality Issue Total Cost-of-Goods-Sold (COGS) Inventory Investment Due to Issues Total Inventory Investment Inventory Turns Ratio ** Subject to verification Data Collection and Analysis  ◾  179 Figure 5.000 $1.100 $171. .Reason (Issue) 134 36 14 9 9 8 210 $10.900 $42.400 $66.000.000.000 $2.25 high inentory inestment—first leel.000.000.000 64% 17% 7% 4% 4% 4% $638.000 5 100% $1.

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7 94.0 Figure 6.30).1 root cause analysis: leels 1.28.6 100.6 67.4 13 12. and 3 (Figures 5.2 100. 2. .4 6 5.192  ◾  Lean Six Sigma for the Office Pareto Chart of Causes for High Inventory Investment or r de d ch an ge liv er s ie el e iz iss at er ia ls Ca nc el ed Sc he e ul La te de La rg s ot M in g m O th er 180 160 140 120 100 80 60 40 20 0 d le Sc Major Impact = Demand Variation Major Impact = Lead-Time Variation Root Causes Canceled order Schedule change Late deliveries Large lot size Missing materials Other Count Ca nc e or de r l h ec an ge he du La te l de iv er ie s o el M La rg ts iz e m iss in g at er ia ls O th er Root Causes Pareto Chart of Root Causes for Canceled Order 100 80 Percent Percent 140 120 100 Count 80 60 40 20 60 40 20 0 Root Causes 0 te de e liv ry iss ed sc La h u ed le r cu at es ch u ed le U nk w no n M In ac Count Percent Cum % 108 80.0 120 100 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 67.0 94.6 80. and 5.5 88.6 10 7.8 7 5. 5.6 16 14.26.1 9 6.8 82.

133 0. 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.114 2.075 14 5 Processing Time 12 9 6 3 0 1 8 6 4 2 0 1 3 5 7 11 9 Observation 13 15 17 19 UCL=1. • Several graphs may be used together if they help communicate process improvements.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. • ere may be several ways to communicate process improvements depending on the intended audience.48 LCL=0 Time (Minutes) 3 5 7 9 11 Observation 13 15 17 After Improvement 19 UCL=2.41 X=1.568 MR=0.2 use graphics to show process improements. .3830 6 4.13 LCL=-0.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Scrap .Accounts Receivable . Summarized Benefits 4. Total Benefits D. Revenue: . Problem Statement 2. Other Cost Categories: .Increase from Volume . Project Metrics 8.Accounts Payable . Compensating Metrics 9.Inventory Financial Classifications A. Financial Metrics 6. Cash-Flow Benefits 12.Direct Labor C.228  ◾  Lean Six Sigma for the Office Project Alignment Building the Business Case 1. Cost-Reduction Benefits 11. Operational Metrics 7. Resource Requirements 5.2 1. Project Objective 3. Cost of Goods Sold: .Increase from Price B. Cost-benefit analysis. Cash-Flow Benefits: 13. Implementation Cost 14.Material . Revenue Benefits 10.Rework .Warranty Project Charter Figure 7. . Net Benefits .

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analysis. that.if.same.between.to.have.article. an. project’s. .the. This..their.will.to. neutral.of.the.a.to. not. calculated.often.a.stakeholder.the.their.9.goal. in.scale.The.percent.was. a.to.. December.its.and.and.The.in. as. range.a.. Frederick.NPS.to. attributes.that.a.Ratings. romoters.concept.from. considered.survey. discussed.customers.400.and.is.better.0. Grow. recommend”.consider.that.to.percent.differing.this. was.unlikely..are.75.0. to.determine. A. Number. entitled.or.that.more.“extremely.to. Harvard Business Review. (5534). reported. NPS..a.average.percentage.method.of.between. across. be.approximately. and.that. In.likely.to.are.to.as.correlates.to. F.usually. requires.analysis.incremental.product. and.by.in.0.are. The.correlates.questions..others. eliminating.“extremely.experiences. Article Number 5534.service.NPS.correlated. s . 2003. risks. consider.16.the.detractors.as..people.types..key.in.stakeholders. are.recommend.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.question.industries.various.”.NPS.key. team.attributes. one.team’s. the.and.asked.is. are.product.to.on.or.a.organizations.execution.various. It. ervice.important.to.final.defined.the.the. classified.as.Detractors.by. Reichheld.a.detractors... a. that. Reichheld.In.would.calculated.and..3 2. of..ranges. NPS... scale.is.world-class.stakeholder.project’s.8.into.an. “The.10.rating.and. in.a.10.ratings.scale.or.issues. promoters. article..that.is.are.not. part.”.important.recommend.7.is.than. entitled “The One Number You Need to Grow.the.modifications..project..support.service.ways.10.percentage.key. neutral.80. views. as.are..customer.NPS.also.project.subtracting.for. of.10.and.A. by.the.NPS.to.It. to.The. Figure 7.they.” December 2003.to.rating.of.decision. Key stakeholder analysis.will.than. is. was. benefits.barriers. responses.of.recommend..a.reported.key.product.summarize.a. without.percentage.because.sales.to. statistic. A world-class NPS benchmark is in the range of 75% to 80% (Harvard Business Review).is.identified.specific.ratings.0.project.NPS.by.stakeholders.other. a. Frederick F. One.or.from.of.summary.with.gain. Need. using.NPS.on. P . You.defined.6.

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

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

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

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

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

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

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

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require.a.not. carefully. the.will.specification.and.frequency.variables.operations.employee.eliminate.could.and.inspection.of.242  ◾  Lean Six Sigma for the Office placed. example.to.address.quality.of.target. solution.based.such.each.be.to.result. as.associated.combined.is. ease.outputs.root. plan..eliminate.method.errors.specified. metric.incorrect.a.(KPOVs).error.their.training. effectiveness.control.designed..the.for.several.tools.requirement.it.with. sustainability.other.ensure. of.must. to.to.an.requirements.have.and.that.collection.problem.control..in.(KPIVs).is..audited.as.first. relying.monitored.been.of. .employee.or.employees.a.should.the. be. information.It.process.tools.with.control.also.should.not.updated.to.may.words.A.tools.controls. will..In.deployed.training.voice.definition.An.lists. The.must. their.these.caused.customer.(VOC). employee.of.that. control.though.change.root.the.remember.3.also.is..common.be.be.that.combination.various.to.other.will.incorrect.training.type.. countermeasures.impacts.context.several.their. p .is.the. to.be.as. on.the.of.on.a.other...also.There. describes..On.will.tolerance.a.requiring.over.of.This.be.requirements.one.control.degrades.related.but.be.tools.be.application. These.performance.time.only.is.be.continually.and.plan.training.invoices.employees. roblems.8.process.were.is.an.include.being.of... as. well.process. A.data. as.A.original. use.an. vary.is.and.tasks.taken.does.should.customer.example.variables.that.the.maintenance..words.be.as.ensure.less.elimination.to.sustained.8. be.that.tools.that.work.on.. were.should.control.is.control.In.control.actions.causes.. who.documentation.procedures.procedures.analysis. as.Table.specific. control. quantities.customer.documented.well.depend. control.procedure.clearly.A.must.understand. Table.the.do.a. manual. As.of.is..take. p .into.can.be.must.the.robust.organization.control.As...if.control.and. and.additional.used.robust..collection. selected.using.be. tolerances. tools.how.to.be.supported.process.methods. over.would. an. and.by.on.process.training.have.as.this.the.tool...sampled.process.causing.for.plan.sample.for.3.example.tools.describing.the.work.methods.be.that.the. more.that.industry..a.method. their..process..solution.However. important Control tools Process.this.the.required.to. of..key. However. well.be.describes.training..of.operations. an.preferable. and.important.several..hand.sustained.critical.In.causes. tools.. in.how.be.over.ensure.employees.Measurement..sustained.incorporated. inaccurate.of.output.to.as.should..process.the.and.its.also.advantage.process. This.wherever.names.efforts.In.input.educated.training.performance.and. as.work.this. controls.control.their.plan. ermanently.need.ensure.range.each.correctly.a. time.original.haphazardly.as.directly.so.specification. it..inputs...variable.found.of.should. well.it.It.may.shown..the.context. hence.a.second.control..robust. correct. of.data.performance.if.problem.also.strategies..effective. descriptions...size..time.an.describe.specifications.a.used. products. should.the.and.actions. services..value.type.to.as. an..including.a.require.As.

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

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

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limits.mean.outside.of.limit.limits.a.typical.addition.a.from. +/– 1.point.context. the measurement criteria.to. 5. the.reference.be.implies. assignable.workweek. subgroup. Select the type of control chart based on the distribution of the variable.of..level.control.this. control.confidence.different.it. implies.a.frequency..can.assume.may.. 4.statistical.an..its.. 6.3 Number of Errors Per Invoice Control charts for poisson distributed ariables (counts).reference.In.collection.limits.its.In.at.variation.is.if. situation. to.the. Calculate the control limits (standard deviations): +/1 (~68%).this.73.the. deviations.rational.on.percent. i.approximately.is.the.subgroup.times..calculating. Determine the data collection system.that.then.then.of. variation.of.that.are.As.control.size.6 how to Create a Control Chart 1.because.original. week-to-week..contains. other.and.In.there.must..daily.established.upper. Determine the rational subgroup size and frequency of sampling. 3.. the.is.27. On.probability. and the evaluation methods.be. input or output variable.chart.73%).due.an. subgroup. table 8.the.is.that.distribution.989 Figure 8.outside.interest. chart.are..a.distribution.five.being.to.of.a.low.variation.the.implies. exhibit.from.. Select the metric. Plot the data and interpret the control chart patterns.days.analysis.96 (~95%) and +/– 3 (~99.of..lower.of. 2.0.250  ◾  Lean Six Sigma for the Office C Chart of Average Number of Errors Per Invoice 6 5 4 3 2 1 0 1 10 19 28 37 46 Sample 55 64 73 82 LCL=0 _ C=1.cause.the.example..in..size.a.e.This.percent.of.of.control.cycle.the.if.. rational.878 UCL=5.high.the. .99. by whom.This.collected.that.and. would. the.with.basis..5.we.smallest.within.control. including where the data will be collected.

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

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

8 Communicating the proposed changes to management.8 82. Percent . 5.25.6 67.27 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 80.0 94.4 6 5. 2.7 94. and 5.0 • How will • Will there be these changes future process be supported changes? by the team? 120 100 80 Count Pareto Chart of Root Causes for Late Delivery 100 80 60 40 20 ed c In or c re e Ca rr ie ue U 60 40 20 0 n 0 Root Causes st om er no tn ifi ot ti o nv ic ss ri nk w no Cu Count Percent Cum % 73 67.262  ◾  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 1.4 13 12.6 100.8 7 5.5 88.26.6 10 7.0 Figure 8.6 80.6 16 14.2 100. and 3 Figure 5.1 9 6.

their.see.developed.1.see.a.its..to.8.type.caused.ideally.the.are. if. total.would.. F .Ideally.using.10.a. performance. Complete all prioritized improvements not completed during Kaizen event.as.the.8.process.levels.event. reporting.is.in.the. down.work.include.our. Celebrate with team.eliminate.level.In. begins.control.immediately.10.4.a.a.Table.for.be.for.to.be.to.related.Figure.complete. Creating metric dashboards Metric.result. of. out. a.addition. it...dashboards.the.findings.A.and..cause.make..concept..cycle.. will. take. useful.metric.such.4. easy-to-understand..identified. enables. complete.the.as.useful.they.information.the. onitor.drill.activities.follow-up.several.causes.basic.team’s.its.the.dashboards.These.broken. and.the.enable.prevent. a.completed.to.root.to. those.divided.should.Figure.organization’s.As.basic.Kaizen.also.able.created.owner.lower.can.. to. m .root.of..8.tasks. b. problem.of.Kaizen.communicating.it.very..similar.activities. appropriate..a.Step.activities.improvement.time. organization.Implementing Solutions  ◾  263 table 8.This. time.various.the..listed.each.are.in.. actions. higher-level.them.cycle.a. of. many.will. feature.of.highly.is. are.The.dates.follow-up.the. degrades.components.is..users.at.team..be.and.degradation.a.dashboard.step.has.completion. and. igure.a.an. be. that.to. performance.metric. identify.cycle.breakdowns.. improved.documented.operations.metric.and.in.As..time.As.Kaizen.shown.have.is.would.8 improement eent Follow-up Actiities a.be. to.larger. an..drill..from.this.an.. to.final. these. Summary Once. Similar to Step 4 of Figure 4.time.8.the. its.must.the. cycle.three.follow-up.there.by.event.enable. process.activities.performance.that. There.the.part. to.shown.this. format.documented. from.or. corrective.8..Kaizen..within.The. Communicate the Kaizen event results. if. need. additional.. etric.1 period.which.activities.be.listing.process. process.the.information. event.format. Kaizen. actions. . a.time.major.responsible...8.These.a.in.into. a.work.in.graphical.first. status. the. c. to.process.activities.and.and.to.example.can. team.there.dashboard.simple.process.to. the.occurring..of. newly.success. of.of. m .Table.root.required..These.the.an.completion. close.performance.analysis.further. event.unfinished.countermeasures. few.to.causes.that.to.not.task.to.chapter.people. using.for. degrade. because.but.plan.steps.8.user.Figure.integrated.example. provides.may.this.improvements.includes.be..of. versions.time.9.celebrating.a.can.components. a.in.within.discussion.of.their.to.are.into.into.down.final.be.

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

0 3.8 4.4 5.3 6.0 2.2 2.4 13. .a.8 1.dashboards.5 1.8 1.0 7.R.00 $20.50 $4.9 0.1997.0 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.performance.6 16.4 2.00 $12.0 1.2 4.4 0.25 $3.0 3.0 30.0 8.05 $4.McGraw-Hill.6 7.2 0.2 75.3 6.55 $7.9 19.5 36..1 4.5 1.4 131.enable.6 2.6 6.5 1.5 0.8 33.5 3.5 1.8 1.6 7.8 1.5 12.6 13.was.6 0.1 3.Implementing Solutions  ◾  265 16.1).8 1.6 2.74 $5.0 10.8 4.work.9 1.8 36 20% 3.actions.1 0.8 0.8 1.7 0.1 0.70 $4.8 1.00 Total Cost by Process Step Total Cost ($) 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 $32.4 $4.4 2.2 0.2 1.0 0.1 18.9 5.8 1.Measuring process capability.6 26.0 4.7 0.0 4.8 1.96 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..03 % T otal Figure 8.3 6.8 0.3 18.00 $8.9 1.0 2.mentioned.of.8 3.0 3.4 3.6 0.7 5.27 20% B 0 1 1 1 1 1 0 1 1 1 0 1 1 0 1 1 0 1 1 1 15 $23.monitor.to.higher-level.6 13.50 $5.1 4. discussion.6 21.4 2.6 100 % 15.0 6. and.and. Suggested reading Davis.8 1.3 0.to.it.York:.4 2.4 4.48 $1.6 3.New.8 10% 1.1 1.00 $6.6 6.0 18.2 7.6 2.9 1.8 1.owner.0 3.77 $4.8 2.9 0.40 $10.that.5 12.2 2.0 0.3 17.7 0.4 1.4 5.95 $19.4 99% 97% 95% 99% 97% 99% 98% 95% 93% 98% 99% 96% 97% 99% 94% 99% 97% 98% 92% 94% $27.metric.9 0.3 1.70 $8.6 7.5 1.00 $10.8 1.4 0.6 0.6 3.0 3.the.00 15% C 1 0 1 0 1 1 1 0 1 1 1 0 0 1 0 1 1 1 1 1 14 $30.72 $27.8 1.0 3.1 14.4 1.5 1.8 5.9 4.40 $13.3 11.2 5% 0.corrective.7 7.9 2.7 374.4 3.6 0.9 1..00 $0.8 1.2 20% 3.appropriate.maintain.take.60 $1.5 $ 91.metrics.8 1.local..30 $1.3 3.6 1.0 14.9 27.08 $0.66 $2.60 1.8 1.9 2.0 Setup Time 96% 94% 92% 90% 1 3 5 7 9 11 13 15 Process Step Number 17 19 88% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Process Step Number Yield (RTY) Top (3) Issues: $14.1 37..10 Creating metric dashboards (similar to Figure 5.0 1.2 4.8 1.8 1.7 1.8 5.8 10.00 $2.status.6 2.7 0.25 $5.7 2.2 9.94 $23.15 $0.00 $4.should.0 7.8 2.8 1.7 10.8 0.5 1.4 2.3 0.Bothe.8 1.8 1.4 0.6 35% 5.their.35 $1.2 1.2 20.80 30% D 1 1 0 0 1 1 1 1 0 1 0 1 1 1 1 1 1 1 1 15 $24.process.2 4.0 2.2 0.27 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 1.8 1.team.2 75.4 4.

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

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

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.

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

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

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

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

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

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

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

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Customer places order.4). Normal 4 Hours Figure A1. Invoice Is Paid by Customer Operations 1. Invoice sent to customer. failure to discover missing or surplus items and related issues. Dev. Normal 24 Hours 12 Hours 2 Hours 8. Accounting System Creates Invoice 7. Order sent to customer. Exponential . Invoice creation. Invoice paid by customer.5 Hours 4. Uniform Minimum = .25 Hours Maximum = . . Failure to discover missing. surplus or damaged items prior to shipment. Order receipt. Order Checked for Accuracy Freight Carrier 4. Incorrect names. Distribution Normal Mean . 5. Order accuracy check prior to shipment. Invoice is not created due to missing information or is created using inaccurate information. Order processing. Normal 8 Hours 4 Hours 3.1 Accounts receiable simulation: distribution assumptions (similar to Figure 6.5 Hours 7. 6. Invoice Sent to Customer Order Is Closed Customer 1. Failure to protect order from the environment.1 Hours Typical Issues Incorrect quantity or product is ordered. arrive damaged or late. Customer Places an Order for Several Products 5. 2. Invoice sent to wrong customer or delivery not verified by supplier.Appendix 1: Crystal Ball® Software  ◾  289 Accounting-Receivables Distribution 2. addresses item and amounts are entered into the system or incorrectly converted by the system. Uniform Minimum = 8 Hours Maximum = 16 Hours Customer fails to properly receive an order resulting in receipt of damaged items. . Lognormal 48 Hours 3 Hours Order is lost or potions of the order are lost.5 Hours Std. Order Is Received in Distribution Center and Processed 3. Order Is Shipped to Customer Accounting 6. Customer Receives Order 8.

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00 45.Appendix 1: Crystal Ball® Software  ◾  291 Normal Exponential Probability Probability 0.00 Mean Std.00 16.00 4.00 4.00 60.00 10. Probability –10.00 2.00 6.00 Normal distribution with parameters: Mean Std.30 0.00 11.00 57.00 6.80 –3.00 16.00 8.50 0.00 50.00 51.00 9.00 . Dev.00 10.10 0.00 Exponential distribution with parameters: Lognormal distribution with parameters: Uniform Probability 8.com –2.00 Mean Std.00 15. Normal (E11) Normal distribution with parameters: Mean Std. Probability 0.00 3. www. 0.00 12.00 4.00 12.00 40.00 Normal distribution with parameters: Figure A1.00 8. Dev.00 2.00 Normal distribution with parameters: Mean Std.00 48.20 0.crystalball.00 9.00 0.00 Uniform distribution with parameters: Minimum Maximum Normal (E12) 8.00 20.00 14.00 Exponential (E8) Probability 39.00 12.00 4.00 18. Lognormal (F10) 8.00 30.00 13.00 6.00 10.00 15.50 0. 24.70 0.40 0. Dev.00 42.50 10.2 Some Crystal Ball® software statistical distributions. Dev.00 54.00 0.00 3. Dev.00 Rate 2.00 48.00 0.60 0.00 Probability Crystal Ball® software is a global business unit of Oracle® Corporation.

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0 60. Process Order 4. Check Order 1.0 Operation 7.1 1. . Pay Invoice 3. www.0 Crystal Ball® software is a global business unit of Oracle® Corporation. Check Order 1.8 4.Appendix 1: Crystal Ball® Software  ◾  293 Percentage Time 7.0 80.0 40. Process Order 4.0 100. Ship Order 5. Receive Order 8. Place Order Distribution Normal Normal Lognormal Uniform Normal Exponential Normal Percentage 80.4 Crystal Ball® software sensitiity analysis. Place Order 0.crystalball.com Figure A1.1 4. Receive Order 8. Pay Invoice 3. Send Invoice 2.8 7. Send Invoice 2. Ship Order 5.0 2.2 0.0 20.

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204 .check-in...monitoring....systems..232 Burger.obtaining.149 .capacity.operations..level.needs.153.management..exercise.278 Business..269 Business. 120..workflows.work..188.240 ...235 Actual.105..43 Accounts.212 Box.. process.84–86 .receivable.123 Balance.example.23 .52 Basic..team.184. 105.52.utilization.94 Airport.146.intelligence..16.material.management.288 Benchmarking.metrics.182 .tasks.process..process.202. simulation:..payable.63 Behaviors.plot. organizational.and...(BMA)..39 Asset.122 Bill..28 Best-in-class.improvement.and.38 321 .index A Accountability...274.52 Best.checklist.batches..... process...of...115 Accounting.assumptions.149–150.conditions.202 .. Kaizen.Group.flow.102 Business.126..workflows.120. process.85–86 ..changing..4 Assessment.170.46.58 Average.(BI).191.(BOM)....105 Automotive. mapping.134 ...objectives. photocopiers...King.and..breakdowns....23.and..156 ..Buy.22 Bell-shaped.(BPMS).belt.233.29.benefits..278 Business.. five..curve. strategic.142 Bottleneck. standards..workflows.Action...key.46 Brown-paper. simulation.239 .and.239 Available. criteria..and.85–86..awareness..activity..148 Bureaucracies..event.277 ...288 Activity.suite....organizational..activities.sheet. waiting..distribution.(AIAG).169.service.and.87 Balance. Kaizen.goals.capacity.240 .104.62.management.and.analysis..of. transfer..296 Automation. methods.278 Business...202–203...147 .59. 227.135....(BPM)..(AHT).handling.57 .(BAM). process.147 .189 Accounting..147..model.21 Accounts.characteristics.Industry.203. analyzing.15...208 Black.278 ...282 Brand..53 ..process....100 Audits...57..and...46..67 Alignment.. bottleneck.120..122 .time.48 Business.135 .improving.123.280..processes.105 B Back-office.....289 .14.material..management..278 Business.103.8–9 Apathy.modeling..skill. targets..

charts..38 Complexity.184 .28.(SMED).38 .organizational..Sigma. Kaizen.operations .278 Continuous.Sigma.282 .improving.factors..and... (pass/fail).model.and.gross.. lack.and.&..projects. Kaizen.tools.. international..Lean.of.Six.and..overview.operations. organizational.E)..services..161 China.and.152 Common...and..building.increased.247.231 .supplier. reducing..36 Cause-and-effect.for. p-charts..(VSM)..expenditure. process.236.charts.165 ..range.281 .69 . interpretation.226.software. format.246 .. scheduling.and.67..64–66.orders.22..in...(IT).231 .to..208 Consensus-based.172.for.workflows. bureaucracy.reducing.statistical.and. process..and. Crystal..concepts. work.232 .. creating..priorities..235.. process.improvement.226 .stream....system.229–232 .219–238.studies. calculations...67 .33 Control.Lean.improvement.198 Capital.272 Communication.74.164 .readiness.in.a..106 .sampling.activities. avoiding.23.175 C-charts.64 Concurrent.236.(IT).distributed.map.flow.for.26 ..77 . individual-moving. Lean...48–49 Competency...180.114 Cluster.and.events.and.barriers.252 Change .237 Communication..(C.concepts.. information. 65–66 ..244–245 ..team.234 ...164 ..and.160..236 .variables...technology.255...recognition.key.(BVA)..162 Compensating..233 . activities..... 215. for.212 .products.and.236 Comparison.systems.67 ..effective.41 Cash.and.. cost-benefit. overview..268.233 Consultants. organizational...change. key. change.flow.227–228 . identifying..process.projects.system..and.249 .business.transition. for.or.222 .and.174 ....219–222 ... key.244.of.. Kaizen...268 Case.7 .prioritizing.eliminating.analysis.cultures...235 .activities. control.technology.37.distributed. information... processes.and..121 ..45 Cashflow. project.for.252 .and.collection....247 .analysis.stakeholders. 6.alignment.. Kaizen. communication.219 Change.workforce. strategy. opportunities..61 Canceled.process..296 .46 Checklists. infrastructure.of....71 Change.172–174.rewards.diagrams.engineering.binominally. Lean.management.225 . performance. prioritizing......planning..271 Competitors.reasons.295. seven.value-adding..and.173 .and..case... Minitab®.Ball®..282 ...team.278 Channel.metrics. key.245 ...improvement.and..margin.product.teams.28 .softwear...96 .and. unnecessary.223–224 Change. reduce.setup.322  ◾  Index Business.centers.91 .250 .stakeholder. value..support. reducing.(CE)..20 .resistance..32 .time.223–224 . c-charts.in. corporate.migration..management.222..of....282 ...274 .procedures.to.232 Change. data.analysis.. readiness..process.184.and.normally.Six....workflow.charts.248 .variables. conflicting.Kaizen.11.222 .analysis.30 .and. (continuous). cultural.219.249 ..48 Cash...initiative.223..245 .125 .75 .210–211 Communication..245 C Call. control.20.

.financial.impact..250 Control.172–174 .for...patterns. training.of...149–150 . job.38 Customers.time. sensitivity.(FMEA).46.verbal.modified. elimination.metrics.259 . cycle.278 .245 .batches... new.282.199 . for..of.148.products..194.. implementing.41.166 Cost-benefit. value.types. control. value.setting...259 .of.tools...43.reporting.(IT). reducing.testing.286.times...259 ..effects. supplier.296 . control. cause-and-effect. failure.analysis.analysis..mode....methods.291 ..and.245.258 .258 .charts.&. purchase..219.194–196 . modification.11.events...239.293 .design. interviewing...73..and.of... new. long.120..242–243.stream.136.value.(CTQ).Ball®.of.of.233 ..(VSM)..245 .or...of..programs.250–251.process.and.limits.231.259 . high.root....282 .38 Cycle.....241 Control..62 .. group.procedures.tools.and..240 .288 . types.. X-bar..of.times.290–292 . 288 Customer.level.methods. Kaizen.. maintenance.analysis. equipment.285.288 .or..E).operations..sustainability.analysis.analysis.71.190 Customer-facing.instructions..of.meetings..a..audits.distributions..and.information.Poisson.. building. 289 Countermeasures.286 .solutions..down.290 .261 .259 .services...177–181 .. cycle.164 .227–228..portions........290 .process.process..245 . requirements.analysis.and.36.292 .(huddles).exercise...plan..technology..systems. box.and.and.and.. business. 255 .and.274.satisfaction... key.137 ..analysis..proofing.289.shadowing. modification.improving.Index  ◾  323 .inspection.of.279 ..226.258 .223.64 Cost.the..chart.147 Critical-to-quality.228.167 .analysis..147 .258 ... satisfaction.analysis. implementing.layouts.variables.avoidance.cause.collection.. Lean.other.impact..259 .tools.of. requirements.data.reduction.sold...211.165–166 .. effectiveness. and.operational...285.288.improvement.tools.242 .. histogram. sensitivity. transfer.197.map.and..software...214...77 ....of.48. Kaizen. implementation. errors.deliveries.and. written. at.organizational.(VSM).222 .migration.249 .250 .255 .263 .55 Crystal. steps.226.222 .and.64 Core.245 Control..demand..229 Cost..40 ...solutions..92.287.259 Core..calculating.87 d Data. analysis. complaints.and.22.and.169 .and.. structures. Lean.flow. 259 .up.253 .188 .46 Customer. information...and.of.251 .cause—late.characteristics.27 Critical-to-quality..259 ..37 Control..and. new..work.and.designs.. changing... variation.and.245 . specialized. key. process.stream.5S.(COGS).team. r-charts.31 .259 .. inventory.263.175–176 .map...4th.levels.141–184. five-why.diagrams...goods.. control... process.reporting.systems.visual.241.281 .82... 200. statistical.258.plot..285–294 ..distributed.(CTQ). 263–264 .232 ...and. mistake...and.(C.analysis.....of.and. brown-paper.new.236–237.questions.286.graph.38 Customer.87 . root. 258 .stakeholder.

.31 Excel.and...15 Everyday.of.93 .256 Failure..options.pricing. purchasing. control.295 Dell.and.255.added.151–159 .106...95 .impact... aligned..change...improve...in.67.collection.195 Error.130 Fact-based.37 e Economic.and.and. risk..and.project.of..training..leaders..for.137.278 Entitlement.191 Expense.16.....66 Design.234 Deployment.methods..in.....effects.(FMEA).200 Finance.analysis.failure. scatter.and.mode.modes.....for..288 . methods...280 Deployment..87.mapping—SIPOC.strategies. in.67 .errors..19.reports.13 Design.of.execution..of.types.154 ....continuous.characterization.organizational..115 Finance.. spaghetti.and.229..champion.178.89. template....reports.139 .Sigma.151 .events.and.89 Error.12. methods.(DFSS).people).(DFM).14.5.language..191 Failure..(EAI)..priority....12 .analysis.and...222 English.258 Failure... Pareto. level.170 .290 .117. targets.104..standardization..257 .process. prioritizing.288 . Kaizen.61 Define.value..(VSM).170–171 ..service.. variation..296 Defects.264 .131–135 .90 .210 ..responsibilities.causes.simplification.19 Enterprise.Six....(DMAIC).209 Empowerment. methods.222 .analysis..269 Distributions. process.rate.163 .planner.55.. 67 Design.facilitation. patterns.(EVA)..chart.and. process..123 Equipment . operations..reduction..196 Employee.119 Financial.methods.160–162 . classifying....(RPN). (FMEA).31 ..258 Failure.296 . top-down..288 Diversity.132–133 .11 Event.rating.. hierarchical.12..66 Design.130 Event....data.... exponential..15.269 Downtime.255–257.14 Deployment.116..reducing.66.. 240..295 . tools.52..143 Data..rates.plot.. normal.Manufacturing.12..25.. value.and..9 E-mail. example.. uniform.and.. standardized.(DFSS).low.prevention.....application.....measure..90 .151..percentages.for.department.services.of .36 F Facilitators.integration.. spreadsheets. variation.105... bottom-up..288 ..36 Exception.. common.Six.effects.258 ...of.222 .221.31 Deployment... process.94–95.10–16.tools.points.or.series.. templates.12 .11.98.40 Deployment.89.conditions..198.time.demand...154 .158 ..map.roles. level..graph.diagram.high.minimizing.66 Demand .facilitator.280 Deployment.analysis.40.200 Finance..(equipment..methods.analyze. 135 Drumbeat..46 Design.121.stream.104 Employee.mode..66 Design.. methodology.Sigma.operations.168 ..94 .. time..turnover..product.324  ◾  Index ..loading.development.

53 Financial.standardizing.287 Graphics.233 .improvement..road..risks.(sorting.process.36 Financial.233 ..charts.90 .operational.261..264 .risks.232..elimination.risks..factors.process. organizational.53 Improvement..silos”. self-discipline.22...metrics.(I-MR...reporting....for.behaviors.events..and.systems.prioritizing.261–262 “Functional.metrics.233 ..122.54 Generic. reinforcing...and.82 .253 Information.19 Goals.and.teams. process...233 ..and.outsourcing.operational.233 ....209 Histogram.39 High.174 Improvement.209 .defect...sheet.and.workflows.expert.... Kaizen.53 Global.209 .projects..show.219–276 .risks. sorting.event. 258... statements.business.. scheduling. identifying.48.and. skew..chains.charts...in.282 ..methodologies.systems..282 .and. 184..165 Follow-up...32 Information.service...supply.assessments.detection.115 ..172.resources......projects.125 .Review... sustaining).behaviors.25 ...using. process.negative.275 Global.46.objectives.to...165–166.and..280 Financial.(5S).analyzing.. change.190 g Gantt.case.implementing..235..166.208–209..173..233 Implementing.of.teams.in..225....map.230 High.team..test.184.. alignment.48 Financial.82 Five-why.... cultural.8...statements—balance.risks.Index  ◾  325 Financial.of.193 Green.down.charts).workflows. technological. process.57.32.statements.38–39.195.221 India. process.209.209 .200–201.breakdowns.solutions.workflow..change.235.. Kaizen.29.. 247.....activities..150 .233 . reward....and.114 Individual-moving.80 ..of...solutions).. processes.296 Generic..113.examples. project.202.278 . worksheet...208....143.and.and.. supplier.89 Hindi. building.236 .167 ..improvement.and.flow.quality..improvement.234 .285 ..278 .137....219–238 .14 h Harvard.282 Incentives.3–110..23 .167–168..breaking....financial..167–168.recommendations...and.impact.high-level.improvement.234 .31.activities. 145.shining.24 Financial.statements—profit-and-loss.activities.Business.level..267–276 Improvement..55.in.belt.19 Hiring.setting.201..analysis.and.opportunities..reports. (for.a..46 Financial.167..89....change.forecasting. 41–42 Goodness-of-fit.. implementation.. economic.168 Human.202 Five-S.81.23 .43.process.224 .methods..263 Improvement..risks.22 . changing.191 .. steps.positive.Kaizen.32 Improvement. standardization.. regulatory.80–81.system.214 Financial..financial.recognition. through. process.272 i Immediate.team..breakdowns.32 Global.127.new.follow-up.. customer.212 .. identifying. order. identifying...language.66 Implementation...range.(HR).

19–20.(ISO)..7 Kaizen.183 Inventory. ISO.198 .175 ..and. process..105.26 ..82–83 .80.times.of.. apply.77 ....222.. reduce.time..131.59 .data.operational. supplier.40.and..types...collection..80–81 .188 Internal.and.37 .projects.and..204 ...97. worksheet.stability..letter.. standardization. systems.. analysis.77 ..improvement..orders.analysis.operations..cycle.137 .preventive..technology.32 ... apply.30.of.material.improvement.5S.time.247...182 Inventory.candidates.waste.and..Institute..tasks..125 . data.. strategies..for.159.116 .105 .196 .....to..tools.turns.... third.76 K Kaizen..251 J Japan.60 .in.84 ..92–93 Just-in-time.level.method.on.136 ..89 ..mistake-proofing.of.and.and.181 .77.273 .reduction. reduce.sizes.requirements.. reduction.investment.27 Internal..125.configurations..(Ys).major..59.. reorganize. building. stable...60 Inventory.268 Initiatives.prioritized... canceled...31 .179 .278–281 .105 Infrastructure.. obsolete.22. service...37 Invoice...157 .ration.eliminate.76 .analysis..269 Inventory. analysis.process.demand. change.(IT). analyze. improvements.112. balance...service. checklist.workflows...137 .of.times.. major...analysis.14..a.(JIT).4.121 ...189 . problem.78–79 .in.235 ..19 Job.135.124.time.4–7 .language. deployment.case.239 .proofing.237.124.and.setup..material..Internet..reasons. 275.. prioritizing.. activities. mistake. high...improving.flow.177–181.of.(JIT). balanced. first..methods.implementing. excess. communication.24.systems.135.227 .137 ..15.specifications.233.66 Interorganizational..139–140.. 120.methods.of.networks.234.and.128 .92 Job...shadowing.operations.. waste.175–176. ISO. information. communication.and.195 ..vs..external.seven..239 .4–5.90–91 .data. asset.24.methods. work. second. 5S.prescreening.142 .136 ..utilization.develop..process.for..data..demand...operational.326  ◾  Index Information.125 Japanese..111–218..272 Internal.103.176 Just.high .239 . waste..94. 277–279 .. control.and.. continuous.53 ..239 .198 .92 International.level.data.134. level.. ISO..work.business. as...177 Inventory.and.of...lot.191 .203 Invoicing.Standards..and.and.9000.178 .cause. link. conducting.(SMED).change.. implementing....87–88 .96–98 .quality. total.physical.60.level.changes.158 Job..collection.. 76–98 ..management.flow. efficiency..38 .platforms....maintenance.event.investment..systems.9001.94–95 .182 ...designs..240 Internet. root. philosophy.shadowing.and.the.analyzing.84–86 ..payment..work.. defining.improvement.standardized.cycle. operational.and.180 . process.and.177 .165..9004.

.development.. rapid. project.customer. .of.128. project. operational.23.114 .131.leader.151.184 decision-making. strategic. project. 141..system..and..Index  ◾  327 data.of.supply.process.. strategic.(FMEA). ...stream.138 . 269 process..data.change.. .22.229.212 Kaizen.cause.233 . .projects.audio. implementing.233 . value. communication.methodologies..events.change..263 .maps. .organizational. .across.marketing.. prioritized.213 .286 control.chains.277 .224 communication.with.and.231 Lean.workflows..222 transferring..process.causes. .277 .chains.222 ..115 .and. .three.122 . .. deployment. schedule.conferencing.205.promoter. .5 Kaizen.26...114 ....and.of.solutions.113–124. .221 consultation. organize.of. ..and..members.202–203..global.global..for.229.and. . resistance. . alignment....274 .117..across...and.30 Lean. .240 . .organizational. voice.224 .129 failure. .improvement.examples.. .129 . international.workflows. .charters. . opportunities. objectives.and.team.and.and.equipment.116 .alignment...119–120.with..of.26.63 Kaizen.and. evaluating.220 analysis..of.best-in-class.118 training.114 .deployment.275 .and.and.. sponsors.189..258 failure. new. and.Six..259 roles.for.and..134–135..177.22..score.activities..127.... supplies.and... planning.identification. Kaizen.212 implementation.117.and.. worksheet..229 process.goals..improvement.analysis.12. .277 . . preparation..36.analysis.readiness.115–116.127 root.... alignment...139..and..25. . video.235..with.responsibilities.examples.185 change.119–123. goals.improvement.277 . ..112 recommendations.8.risks..22 . ..42.and.questions..team.29. support.prioritizing. 234 ..32..effects.190. .analysis.for...111–112. improvement.. kickoff..event..126 .and...126..financial..characterization.180 empowerment.267–268 . facilities.and.and. .. conditions.local.130 .118. ..234 implementing.and.256 general.train.233 six.alignment.15 .200.and.activities. .process.supply.and.124 .153.activities.(VOC). ..195 data.138 facilitation.117..and.stakeholder.50 .55 ..and.182.charters.280 project. infrastructure...and.product. .in...the.and..254 net.....analysis.goals.control... 121.workflow.187 identifying.process.(NPS).. ...282 . obtaining. . 269–270 . .and.....of.risks..160.of.122 .operations..26 Lean.experts.research.118 .255 support...220..components. process.231 .steps..232 evaluation.137 measurement.. follow-up.of..116 rapid. and.improvements.tools..measurement.team..analysis..charters..improvement.259 .of.225 .transition....workflows.. process.and.organizational. project.for..191 improvement.and.and..and.objectives.and.causes...129 . 131–135.and.. . strategies.. objectives.123. activities. .responsibilities. facilitating.Kaizen.layouts. 207–209 project.collection. .with. .objectives.and.163 Kaizen..for. .root...155 process. .127 roles.and.124 .215 process.118.personnel.team.54. .of...breakdowns..128 .mode.115...136 analysis.116.analysis. 139 key.of.training...36. ..teams.221..196–198 scheduling.of...agenda.Sigma.and.solutions... obtaining.129–130...collection.128 .223.and.126.components.personnel.and.

61.improvement. Step.224 .282 Lean. satisfaction..of. behaviors.production....137 .296 .(SMED).of.Sigma.274 Lean. implementing.John..46 . process...29 . operational. initiatives.masters..41 Lean.and.and..analysis.workflows.collection..setup. basic.237.230.(HR). Lean.(KPIVs).68.274..82.chains.analysis.for.3:.event.231 ..223.269 Lean.Six...concepts..align.. organizational. concepts. excitement.122 ....output.30.methods.and.across.69.. process. improvements..for.36 .Design..63...metrics.and.and.44..137..200 ..focus.62 Key.177 . communication.Six...discussing..variables. 18 . performance. sales...101 Kano..233.Sigma.....deliveries.of...62 ..4 . culture.102 ..46 .14 Lean. Kaizen.24 ..268..96..184 Lead.system.and. impact.236 .136 .125.198 ..conducting..236 .280 Lean..77.2:.11 Lean.100.1:.metrics.language.90.level...of.objectives.opportunities.change.. methodologies. changing..220 ..31 .the.Kotter.191.(DFSS)..workflow.supply.24 ...and.222 .process....240 ..295 .5S....32.46 .reasons.71.Six.event.55 . examples.customer.and.needs..(listed).deployment....39–40 Lean....280 ..metric.. reduce..complexity...needs.initiatives.46–49.135 Leading Change by..45. marketing.Implement.10 .25 Lean. voice.143 .variables.7. process..process.stakeholders.61 Lean..189.event.input. human.. concepts.275 .32.45 Lean.and.. process.28 Kanban.John..5 Lean.26.solutions..processes.23 ..team.resources. rapid..assessment..240 . six..8..138 Lean. inventory..and. reducing.time.evaluating.projects.improvement.and.19 Kotter.5.112 .14 Lean.31 ..needs. financial.and.and.Kaizen.62 .plan. deployment... prioritizing.24.and.of.195...tools.metrics. control. Step...of.268 Kobayashi.Sigma..64 . supplier.of. initiatives.initiatives..and.processes...202 . tools.. cards.design..229–232... activities.78 Korea.67 .267..(KPOVs).of.281 . operational..136 .55 .philosophy.57 .42.. product... tools.time.125 Korean..46 ..expert.of.129 ..and.231 .90 Lean..needs. data.62 Kano.workflow.4 ..49 Key. process... performance..46 .222. major.change...conduct.strategies.level.P. common..90 .of.. procurement.the.. projects.Kaizen.impact.events.changes...268. metrics.23 .of....financial.242 Key.operations..analysis..methods..128...205 .Lean.46 ...and. operational.and..44.definitions.the..characteristics.19 Late.differences.networks.process. diverse.180.and.269.improvement.31..184 .328  ◾  Index Kaizen.57 .22–25..approach.of.improvement..and. process.105 Lean Six Sigma. 270 . deployment.common.32 ...cultural.70..viewpoints.242 Key..191 ..66 . Step.46 .and.methods. analysis...160.of..23 l Language.global.metrics. integrated...258 ..P.(VOC).Dr....98.19.

and. implementation.metrics. continuously.279 Lean..29 .and.systems.Maps..279 .identification.30 . communication.the.55.38 .team.222 .and.135 Major.process.metrics.measurements.chain.... reduce.82–83... Customer)..logs. financial.process.event. business.product. eliminate.30 .33 .46 . create.of.(JIT).operations.Kaizen.and.100 .76–98 . management.work. compensating.Lean..key.operational.Six..workshops)..assessment. eliminate.initiative..and. value.complexity.Teams.97 .cost. four.networks...Stream.and.46 .31 .operations.unnecessary..implementing.and. create..event.metrics.an.metrics..143 Lean.and..control... low. continually..teams. plan.16 .. deploy. low. evaluating.capacity.materials.26–27 Lean.. Kaizen..high-level..94 Lean. continuous.. project.and.41. Lean.277–278 .of..Sigma.internal..22.28 ..Sigma. project. systems.process.. develop.281 Lean. root. implement..Six. 102–104 . elements..111 .yields.32 ....14.the...system..of.Basics..46 .16.business.key.and. high....content.selection.in.improvement.Six. mixed-model.technologies.106–110 . manufacturing.methods.of.charters.39.visual.39 .cycle.85.24..69 .analysis. in. Lean.metrics.to. global..and.support.unnecessary.(Voice.conducting.cause.pull. visual. performance.197 .Sigma.systems.Six.and.update.67–68. strategic.and.steps.demand.105.stream. flow..elements.138 .controls...3–4.and.chains....78..sizes.tools..supply..29.systems.61–63 Lean.21 Lean.information.(JIT)..220 .time.operations.deployment.of..and.of. deployment. supplier..complexity.. performance.in.117 .Six.system... supply.and.for.of.35 Leanness.elements.Teams.12..robust.process.24.and..26... benefits.36 .methods..50 .process...Sigma...69 . service.case.pull.and.the.38 .39 .36–38 Lean. problem-solving. analysis..improvement.Sigma.change.product..Just.Time.15 .and..55 ..-.customer.38 . executive.112.system.reducing...of.. Lean.of.office..improvement.systems.70–73 . technology.and.61.Six...Six..and. low.schedule.38 . alignment.workshops..tasks..(VSMs).and.methods.64 .67–68 .update.41 .41 .Six.flow.100 Lean..46 .teams.and. tools.methods. and). voice.... implement.a.and.the.21.Just.100–101 .of. 24 ..161 . ten.Index  ◾  329 .(middle.29 .83 Local.elements.change.TIme.212 .277 .champion.26–32 .Kanban..37 Link.workflows...Value... 63.process. project.VOC..23 ..53.Kaizen.networks... strategies..of.. team.and. building.32 .system..technologies.32 .work.96–98. project. simplification... problem-solving.33 .tools.designs.. teams.29 Lean.process.38 ..alignment.26 ..102 .map.68 Lean..64–66 . reducing.274 Lot.to.16 .14 Maintenance.. rapid.Sigma.measurements.training.of.(VOC)..74–75 .of..supplier.97 .event.30.29 .29 .32 .Sigma.teams.data.and..31 .Sigma.37..process.142. planning.complexity.environment..variation.planning.98 m Maintenance.and.(VSM). implement..of.scheduling. ten.operational.29 .27 . reduce... understand.57–110.(leadership.32.58 .98–99 .teams.training.46 .value-adding..22 ...in. high... projects.and.the.(VA).14.

.240 Management.37 ...chart.191.improvement.score.and.255 ..330  ◾  Index Major.inventories.Sigma. Kaizen..example...by..data.265.135..46 Market.Six.191.37.improvements.and.46 .softwear. Lean...204 Marketing.190 Miscommunication.. Kaizen.. 281 McDonald’s..231 Mixed-model.162...and.87 ..247..84. simplification.2). process..(VOC).253 Non-value-adding.system..language.296 . functional..and..20..87–88 .120 . operational.scheduling.error.charts.Inc..187 .66 .project.analysts. processes. 198.award..36 .195.295 .statistical.dashboards.230.chart.127.280 . linearity.system.....102 Measurement.45 . process.control.74–75..(NPS).chart. pull..variation.206..and.254 .(NVA).207 ..chain.codes. balance. balancing....reinforcing. buffer. design.296 Minitab®.254 ..66 .of..operations.38..28 .Baldridge.(Appendix.. resolution. Lean.(VSM)..example.168 .. value.of.system.stakeholder. creating.changes.57.. methods.penetration. policies.297 Minitab®..and. 253. voice. control.process... 176–177 .product.a..customer. Kaizen.185 Mandarin.66.201 Mistake.job.278 .. reproducibility.level.higher.153–154.Quality.flow.systems.173.205 .promoter.. repeatability. Lean.84–85 .44...Six.263 Metrics ...Minitab.alignment...analysis.Quality.times. Pareto. prioritizing..91 .156–157 ...295 ....268 .255 .102 ....supply.patterns.of....and. define.and.64. financial. creating.cycle.207.98.research.205 Materials..297 ..53 Malcolm.21 .analysis.254 Measurement.and.workflows...66 Mistakes.7.129 .89. process. market... common..and. Companion..procedures. Pareto.85 Mathematical.36 Metrics.and. 295–298 Misalignment. Companion.295 Minitab®. process.Statistical.strategies.event.and.and.scheduling...using.189–190 .modeling. strategy.statistical..11 .29–30 .research.. accuracy.204–205.and.278 .... Kaizen.criteria.254 Metric...264.263.plans.. error.Baldridge.shadowing.2.behaviors.196 Nonrandom.the...19 Market.and.and...mapping..characterization.features..stream..and.of.92. stability..material.296 .Software. standardization..254 ..258 ..29..285 .Sigma...66.137 ..Sigma...177 .issues.. eliminating.reporting..160 .examples...189 n Net.reduction.254.and.increasing.249 .system. analyzing.295–297.270 New... key...complexity..106 . Lean...23. control.57.222 Mistake-proofing.29 Minitab.240 Malcolm.296 Minitab®..and.61 Mitigation....99.Six..flow..and..254.66 .components..of.teams.296 .analysis.230 New..254.32 ..Quality.team..255 . inventory.. development.232 ..tools.254 .and.testing.of.283 ..map..products .265 . process.142..softwear.and... operational.214 New.7 .schedule...products.data.research.toolsets... process. reduce.and. project.methods...proofing.. method.205–207.Companion.team.295.and.229 ..

change .267 . critical.168 P-charts.(VSM). allocated.mistakes.the.. 70 .space.metrics..change.60 Office.projects.W.within.themes.differences.environments.operation.. voice.9 Organizations.29 .69 .184.event. identifying. sending..behaviors.stream.to.(CTD). value.63 .... Kaizen.269.or. value.168 .of.270 ..53.lines... effective.39.134 Operational.throughput.61 .structures.time.for..(CTS).stream.(VSM).145..content.. process.collecting.....event...environment.60 .Martin.(equipment. rework.(units.39 .supply.69 .. about..objectives.expenses.cycle.71 .69 .(OR).methods.(CTQ).common.productivity.and.70 ...69 .58 o Obsolescence.cultures..120 Operational.128 Operational.performance.282 .25.. people).26 Operating.180..improvement. rapid...defects. brown-paper.... mathematical.and.map.57.69 .. cultural.61 . Lean.224 Operational Excellence—Translating Customer Value through Global Supply Chains.Excellence. 69 Performance.office.19.24.assessments. repetition.gaps.data.55 Operational. scrap.supply..and.41 Operational.(CTC).247 Organizational.269 Operational.32 Office.71.cost. minute).. limited.team.184.268 . implementing.182.154 .269 ..277 .of.reports.themes..232 .the. Kaizen.and. critical-to-cost.69 .. prioritizing.188 Outsourcing..percentages.measurements.. Lean..and.274..new.143....269..233....84 Oracle®. global.and...goals...38–39 .information.61 Np-charts..31 Operations.chains.incorrect.29 Performance.workflow.288 Outsourcing.system.82 Pareto..195 Outliers.277 ..63 .113 .254 .breakdowns.required.responsibilities. standardizing.floor.of....proofing.of..percentages.activities. time.. measurement..themes.. percentage.286 Organizational..chart.61 Office.change.... production..247 Performance.283 Organizational...63 .149–150 ..269 p Packaging...systems.production..workflows.map.task.or.268..221 Organizational.40 Operational.processes..55 Organizational. critical-to-delivery. critical-to-quality.168. transportation.(VA).31.information.percentages.55 Performance..of..rate.to.safety. setup.. creating...145 Operational. analysis..investment.40 .exercise....(VOC).169.stability.253.products..of..19..analysis.37 Operations . reporting..and.in . roles. inventory. simplifying.themes....by.customer.55 ..from.or.of..work.Index  ◾  331 .value-adding.64 Overproduction.31 ..chain..63 . James.43 .barriers..272 Organizational.services.11.metrics ..232 Organizational.63 .research.environments.18.147 .Corporaton.....discussing.and. downtime...financial..and.per. dysfunctional. mistake.and..70 .times..11.jobs.measurements.training..119 Operational.. Kaizen.44 Operational.... reinforcing..

243 .79 Pilot.222 .141..worksheet.242 Process..240..155 Process.barriers.process..189..7.149.change.78 ..tools..243 Process.281 Process.optimizing. 195–218.186..mapping—SIPOC..approach...simplifications.control.reducing. training... cost-benefit..240 .information..243 .153 Process.and.global..layouts.and..event.outputs..160–162 Process...inputs.7 Process..tools.236.analysis.analysis.procedures.barriers.improvement.153. impact.and..10 ..36 Poisson..to. part-time.185.(SPC). Lean.. excess.224 Process.196–198 Process. control.questions.workflow.Excellence. audit.258 PowerPoint.269–273 ..activities.support.analysis..configurations..202.242.effectiveness.levels.worksheet. 199–211 . mistake...332  ◾  Index Physical...failure..change.audits..234...287.findings.(floor.. implementation.46 Priorities.57 Process.227 .. elimination.of.119 Process..57 .of.281 Process..148..60. opportunities.224 .237 Process.cause.235 Process.processes.teams.102.design.process. organizational....136 Probability.standardization.methods..improvement.222 .training.of.30.197 .experts ... continual..288.. lack.improvement.to.demand...279 .supply.Lean.122 Process.237 .conflicting. and..mode. variable.122 ..44 Process.168.263 ..control.operations.proofing.operations.changes.controls.. measuring.82 Process.organization..271 .245 Process...295 Present.breakdowns.22 Process..243 .changes..141 . 233.32 .examples.cause....and.walkthrough..audit.common..213 .procedures).243 . 194–196 .152.137 .38 Prioritized..264 Process.231 . 5S.and.185–193.191..and.135 Process...and..200 Process. across.study. simple... floor.242 .121. root.137 . poor.163...characteristics.to.of.240 ..analysis..190.standardization.240..163 Process.improvement.194..training... work..strategies.22..updating. common..for.waste . collecting.242 ..documentation. organizational.process..44...process.241 Process....212 ..inventory.of..area..teams. overproduction.work.systems... statistical..239..variation..264 .151..236 ..improvements...technologies.147.analysis. organizational. reducing. analytic.222 . failure..60 .mapping.185.57 . strategies..lines. poor.prioritizing.57 .tool. Kaizen.243 ..of. reorganizing.78–79....247.104 Process.....274 Process.53. root.256 .workflows.243 . obtaining. changing.and..242.. organizational..196 Process.and.57 . training.analysis.owner.226.eliminating.. implementing.... examples.inspection.57 .of..effect.and.tasks. methodologies.290 Process .223.control.levels. identifying.using.151–159 Process.. office.developing.sustainability... employee.and.complexity.243 ..procedures...characterization.223 .261 Pricing..analysis..methods.. lack...process..and.on..185–193 ..225..required.241 ..188–189.189 . implementing..layouts.analysis.data.distribution.32. common...82 .253 Potential.119 . key. full-time..30 Process..10 Process.240 Process.scheduling...distribution.(FMEA).283 .196.28 Process.of.effects.... scheduling.workflows.

50 .....(SMED).charters .....waste. Lean.77 Productivity ..information.and.50.mistake.flow.material....151. Kaizen.55. communication.process.40 . Minitab®. Lean.. metrics.defects. control.150 Product.processing.work.288 .19.72... machines.example..receivable. operations. . prioritizing.220...and..alignment.194 Project..145 Project.222 .and. formal. common.Index  ◾  333 ..of.champions.205–207 . supplier.. information. quantification. standardization.technologies.. analyzing.environments.goals.and.performance. simplifying.changes..(P/L).69 ... objectives.129 .people.45. preparation..287 .analysis... example.assessment.employees.processes. accounts..8. project..201 . value.management.motion.of. improving.289 .. financial..examples.time.. accounts. .279..deployment.proofing.characterization.map. Excel-based.high-level.153 .14.11.of.charts..teams.57.every.events.149 . Lean.Kaizen...analysis...classics.. performance... unnecessary.goals.analysis..233 .capacity.statement.process.tools.30 .transport.53 .57 unnecessary..and.or.stream.and.153 ...team.50 ...and..materials...40 . outsourced..208–209 . project.or. simulation.characterization..203 .57 ..119 .projects.down.and. balance.proofing .227.190 Production.workflows.281 Processing. prioritizing.statistical.52 .objectives.identification...and...data. financial.down.137 . Lean. hiring.metrics. reduce.research.61 seven..42 .142 .metrics. operational.or.235 ..product.57.forecasting..and.190 .and.. outsourcing. breaking. financial.197.. quantifiable.identification.model.24 ..32 .redesign. waiting.18 Product.37.. Lean. control..setup...57 Process...and.60 Procurement.workflow.service.202–203 .(VSM).. office. cost-benefit. changing.at...119 ..36 . mistake.36..173 ...workflows... new. financial.204–205 .43 ..and.receivable..complexity.. value.and.290 ..224 . goals. collect.55 ..119 .58 .measurements. brown-paper.115 Product.for.by..and... pull.50.assessment.144 Process. breaking.product...90 ..Kaizen.115 Product.benefits.business.events.supply.forecasting.50 .. project..222 Project.controls.200..models.control.operation.marketing..of..43 ...of. auditing...43 . Lean..60 ..exercise.41.stream..process.. selecting.27 .and.systems. new.142 .and. three-dimensional.57. analysis..yields.55 .forms..rationalization.21 .common.59 Profit-and-loss.research.and.process.by..mistake.product.(VSM)..135 ..36 .of.. example...of...and.113 .map.20 .219. process.plan.analysis.30 . process.41–42 .solutions. implementing.. process.116 .21 ..117 .268 Project..188.and.84 .chain.35–56.and.identification.24.191 .design.47 Project.296 .51.and.of.and.200–201 . manufacturing.operations.proofing. transfer.154 .supply.52 Project.of.38 . waste.. product.200 Processes .18–21 Processes.softwear.199–211 .chain...32 ..and.and.and.high-level.market...42 .the.60 Process.59 . new..identification. layouts..227 .systems.9 .24 ..15.available. waiting.development.261 Project.

change..leaders. codes.events.189 r Random.example. .benefits.154 .supply.improvement..chain.. 269–273 Relocation.227 .Companion’s.satisfaction.227 ... Toyota..32 .and.45 Project.transition...metrics..supplier.using.identification—process.90 Redundancies..105.60.methodology.minute.(ROI). increased.and.sampling.Companion. resistance.definitions.227 . Kanban.100 Pull. .system.reduction.31–32.269 Projects.. minimize.. 45 Project..a. summary.and.analysis.227 Projects.296 Project. SMED.on.232 Resources. important..to.assessment.product.and...160.team..Lean.40 Quick-response.inventory. prioritizing.work-in-process.. typical.264.exchange..charts. process.212. ...50 project.control..15 .forms.risk.15.in.nonfinancial.scheduling.55.systems.manufacturing..(SMED).. overview.. revenue..eliminating. others..across.22. implement...100.... increased..chains... increased....227 .100....presentations..global. 31 .organizational. Kaizen.35–56 prioritizing.external.and.12 Project.time.analysis.avoidance.56 .(SMED). increased. .12 Return.process.and. cost.of.32 .....and.52 Project.worksheets..and.behaviors.14..examples....setup. .of .visual.teams.80 Reduce.new..sold.40 Project...161 Push.customer...benefits.Frederick..dies.43–44. and.production...219 Project.89.Roadmap.identification..227 .teams.230 Red-flag. allocation.289 .39–40 key.Companion. .demand..prioritization..274.of. eliminating.46–49 Lean.274 ..282 .35 Project.questions.102 Q Quality.systems.. implementing.constraints..investment.charter.267–276 . templates..satisfaction.240 Quantification. assigning...cashflow.20 Resistance.service..control. 43–44 .project.or.changes..225 ...customer. change..297 Quality...conditions.251 Rapid.297 Quality..334  ◾  Index conducting.(WIP).275 Rebates.controls.increases..system.technology.103 ..212 Projects .36–38 overview.employer.48 Project.4.identification—process.39. expense.to..and..2. ..plan.100 ...(IT).demand.scheduling.234 ..PowerPoint..259–260.225 Project.230 Reinforcing. Kaizen..and.daily.reading.52..117 .methods...analysis.50..28 .262 Pull..of....solutions. cost.satisfaction.of.to.changes... management.systems.91 .(COGS).projects..supply..of .239.227 Proposed... stable..communicating.87 Red-tagging.51.298 Quality. generic.66.. suggested.. single..of.102 .processing.39 Pull.financial.267–268 .7 Reichheld. information.90–91 .Lean.116 Project.goods.projects...F..proposed.151 Range..100–101 .improvement.213 ....227 ..metric. short-term. Kanban.259.195 Regulatory.260 Quality.cards.28 Recommendations..267–268 .55 .assessment..plan.37.activities.51–54 project.

conducting. opportunities.systems.292 Singapore.274...Lean.164 ..and..strategies..breakdowns..285 .a.methods.1. operational.170.activities.and.and.promotional.134 Scrap.142.39 .263 ...281...288 .and.and.and.. example...and.world.workflow.Sigma .. cost-benefit...214 .model.. histograms.3..288 .change.estimating. building....121 Service.chains..rework.&.231 Rework. deployment.Financial.182 . 90.time.212 .setup. example:..184..minute. concepts.events.and.219.25.analysis .tools.analyze.example.190.and.and. process.31 Sarbanes–Oxley.196 Service. standards.150..233 .. improvement. failure.162.....261 .. infrastructure.141.operations.process.286.improvement..knowledge.204 Sales.global.professionals.team.a.case.116 .and.improvement.40 ..processes. changing..196–198..analysis.environments.readiness.. collect.and.team.rating. loops..exchange.across.(SMED).across.improvement...225 .chains. 270 .diagrams.. percentages..industries.and. Kaizen.and.202 Sales.232 ..92. data.(RPN).behaviors...285. process.change.dashboards.143 .23 ...237 .new.192 .and.200 Senior.200 Risk.cause.. Accounting.192 ...115 ..activities.events. accounts.96 Setup.(S&OP)..data.136 ... control.117 Root..192 .and. key.26 .Services.business.64. process.80 Sharing.and.278 Roadmap.135 Sharepoints.and. reduce.277 .(C.115....team. process. Kaizen.11. level.time.prioritizing...for.282 Scrap.19.and..recognition.. 180 .(FASB). creating.Quality.systems..minimizing.of.mode.135 . level..119. implementing.the..188 .analysis.priority..recognition.202 .167 .of. 222.222. disorganized.287 Simulation..changes.290 ..204 ...breakdowns.157 .. aligning..analysis.223 .194 ..effects...improvement...195 ..assessment.272 Service.Companion..and...202 Scatter. identifying.236.90 .and.analysis.process.collection. 272 .Board.. Kaizen.separation. process.characterization..analysis..160 .transition.(SMED). process..plot..processes.and.. communication.273 Shining.capacity..map.282 S Sales.67 Service.and.(FMEA).dies.7 . reinforcing.supply..30 .process.269 Simplification. organizational. metric...marketing. data..office..279 .. change...global.227 ..and.percentages. cause-and-effect..77. reward.53 Simulation.2.planning.286 ...171...reduction.focus.analysis..2..analysis..workflows.and..and.. process.Index  ◾  335 Revenue.. cost-benefit.receivable.286. project.286. common. change.197 ..and. 255 ..change.projects.8.287.opportunities.287.125 Single.and. Kaizen.inventory.272 .221 .management .91 Six.supply.80 Simplification.258 Road.receivable.E). accounts...of.change. follow-up.solutions....systems.113 .increases.36 Reward. level.137 ..195 ..297 Role.and.and.and.. activities... waiting.223 .across. workflows.240 .stakeholder.

261–262 .. measure. communicating....and.11 Six.61 ..and.19 Spaghetti.sampling..reduction.improvement. .51 Strategy.151...18–21 .168 .global...from.behaviors.support..and.189.tools.identifying.softwear. important.control. management..296 mistake.259–260 .plan.system.. organizational.and.plan.(VOC).239 . Six..267 .project. Kaizen.analysis.67 Six.dashboards.analyze.and. 177.phases ..process. . projects.satisfaction.159..in.the.variables.to. 255–257 .Quality...and.30 .and.customer. data.Sigma.297 Small..initiatives..3–34 .. general.new.deploy..supply.41.and. important.239–266 .group. 254 Six.295 Minitab®.controls.. other.178 .296 Stakeholders.control).(KPIVs).129 .system.10 ..alignment..data.241 ..Sigma.implementing.259 .8.“belt”.improvements.of. building.change.proposed. measurement..280 implementing..gaps.problem-solving.elements.activities.. define... control..change..methodologies...(SPC).execution.240..mode.behaviors...and....networks.case.performance.control.process. ..process..178 .. ..(huddles).61 Six.methods. building.analysis.222 .295 .5 .methods..196.244 .Minitab®.steps... inventory.53 ..control.. ..122 process...3–34.(DMAIC).. organizational. supplier..240 methodologies.effects.281 .projects..61 .business. process.System.variables... analyze.223 ..244 .9.and. reinforcing.281 ..191 Six.analysis..214.statistical. quality.10–16 .teams.across..270 .measurement..89.111..and.26–32 .output...21 process.96 Solutions. voice. deployment..25.. components. examples.and.process.Sigma. key.methods.152 Strategic..222 ..261.requiring. 269 .a..Sigma.222.. key.. statistical.analysis..proofing..variables.tools. Companion.meetings.and. 244–253...system.error.deployment.breakdowns.61 .162 .measure..of.Sigma. how.280 ..a. reducing.... 24 Six...224 .(KPOVs).17 . methodology...waste.142. softwear.characteristics.improvement.. ..61 .. overview.and.into..processes.42.16.analyze...of..244 Statistical.253 .improve.team.collection.137. commitment.. key. data.and.. tools.template.analysis.242–243 ..a.and..60 Statistical.296 reinforcing. work..measure.diagram.control.for.263 .events..chains.268.case.205 .and. key. process.and. (define.solutions...32.business.Sigma. define.changes. .new.122 .....and.244–253 Southeast.Asia.191 SMED. control. deploying.processes..61 Six.incorporating.. Lean..and..process.5 .lean.(FMEA). Kaizen..92 SMED. improving.61. follow-up.improvement.metric.principles.Sigma. .system.159 Stakeholder.184 ..254 ....33 .activity.three..224..analysis.. projects.30. control.258 . 177 .analysis. creating.63.240 ..reading.complexity.92.of. 160 Six.statistical.and.for. data. Kaizen...98 . outsourcing..Sigma. improve.questions.. methodology . Kaizen.tools.change..initiatives.155 Standardization.128.to.Sigma..change.team.137 outsourcing.change.of.229 Standard.22.226.and.extensive.. failure.264 .142 Statistical.analysis.and.work.requirements..collection.. suggested.improve..example.35 ...22–25 .336  ◾  Index events.150.184 .Lean.five-phase.methods.tools. overview.input.strategies.

77.145 .workflows......productive.38 ..rate.63 .systems....(COGS).63 .69 u U-charts. utility.(JIT).. 92–93 .scheduling.process.manufacturing..8.production. global.content.163 Supplies...develop..4–7 Stratified.100 Unnecessary..flow.expenses.210 ..importance.92..59...... information.reducing.... calculation.72. benefits.conducting.members.. “Preventive…Autonomous…Predictive”.stream.58.of.37 Team.preductive..support.230 Time.210 Supplier-input-process-output-customer.98–99.......74–75 .control.. see also.concept.93 .10..... 60.of..is.12 Total..77 .61 Unnecessary.Harvard Business Review article)... summary.30. of. analyze.Parcel.85. within.process.(SPM)..several.16.Kaizen?..73 ..76 Training..184.171.of..95 .(TPM).118 Supply.Grow”.and.. constructing.maintenance..32 ..57..101 .modified..Index  ◾  337 .batches.31 Supplier.maintenance. process. improvements..sampling.117 Team.76.operations. price.jobs. assigning. key.. just-in-time..157 Supplier.and. process. dysfunctional.74 .management.chains.103 . value-added. dysfunctional..obtaining.149–150 .233 Unit..workflows.systems..and.initiatives.standardized..61 .studies.data.28.202 .and.Production. (SIPOC).map..and.. process.run..182 ..152 Summary.to..system.117 Testing.97 United.. (TPM) Toyota.maintenance.pull..services.Service.253 Trial.One.Number.114 .92 v Value.movement..92..93 System..or.63 . relative.77 Toyota.environment. what.materials..workflow. predetermined....time. functionality..availability.batches..Need.for. time.analysis..63 .prioritized.series.31.good.preventive.(TPM).expectations.....information. 210.and.training.in.. supply..63 Value..136 .30 t Takt.88.17.forming..282 Top-down..and.137 Transfer.waste. developing.complexity.211.reducing...15.cells..just-in-time...You.189 .States.77 System .249 Unionized..236 Travel.163.and. calculation—future..28 Trends.eliminating..breakdowns.. 100 Toyota.new.cost..System..total..(TPS).. production.105 ..37 Total.networks...chain.170–171.technology.strategies.75 U-shaped.93 Total.37 System..graph... calculation—original.identifying. “Lean”..(JIT).equipment.33 ..state.. (Frederick.Reichheld.8.278 .87 Transferring..63 ...96.82 Time.164. procedures.products.117 .and.performance.37 . process.127 .274 Transition.work..work.38 United.and.87..(IT)...(VSM)..and.128 Teams.of.motion.of.sold.38 .67 “The.

76.90 .63 .202 .office....complexity.(VA).35 Work.195 Work.145 .analysis.27 .rooms.product..146 .7 ..74 . elements..26 .and..89 .the. collecting.the.144 .supplier.business.17 . common.Sigma.87 .139 ..10 .projects.data.systems.Sigma.and. alignment...software....205 .280.setup.61 . Kaizen.and.of.unnecessary. quantification.7.create.269 Work.new. eliminating.about.211 .implementing.30..135..environments...145 Value-adding.70–73 data.of.. strategy.279 . workshop.stream..100 Visual.a.70. 120.process.eliminating..the.and..in..62.(CTD)..to.workflows..38 .U-shaped.performance.process.steps..115.117.. . Lean.patterns.setup.requirements.systems.job.115 Waste.of.131..11.39. process.67 .characterization..the.. Kaizen..and.and.and. reduce.of.122 ..61–63 W Waiting.79..(SMED).44 ...72.and.29.and.workflow..(VOC)..identification.multicultural.7 building.61.(JIT).themes.163 ..systems.for. 32 Voice.customer.motion.37..of.map..environments..information..basics.. voice....79 Visual.implementing..156 Waste..and. process.. Lean. balance.workflows.changes. reasons.. .95 War.create.(VOC).38 .. critical-to-quality.themes. . three.58 “Walk. Lean.time. process.222 creating......process”.system.and..system.212 .of.153 .. outsourcing. activities. just-in-time.127.planning.Six. 141–148.129 .. calculating. voice. visual.of.mapping–SIPOC.for..duration. example. understanding.alignment..basics.(CTS).(JIT). example.collection.alignment.and.behaviors. mistake.time..40 Wal-Mart.105 .and..63 .workflows.analysis.73 .themes.and...space..144 .and.exercise. ten.and..187 ..operations.case... example.37 Work. Kaizen. pictures...146 building.120.workflows.(CTQ). 74 ..83 Work. ..156 .63 .129 .and.106 .change.Six.. reducing..systems.150 .63 .of...11 ..new..84 .150...by.analyzing. example.customer.the. process.182 ..workflows.121 .themes.27 .of..and...21 ....of. just-in-time.and.60 Work . eliminating.176 .. critical-to-cost. project.pull.7. implementing. outsourcing.unnecessary... strategy.process.91 .shadowing..(SMED)..(CTC)... process.operations..to.71 .. process.change.153.activities.model. process.operations.164.of...flow.operation.processes..operations.3 . reinforcing..71.and.development.(VOB). value...safety.to.. process.and.31.(VOC).(VSM).event.154.and..analysis.of.cause.team.. critical-to-delivery.30.118.major.. process.workflows.338  ◾  Index brown-paper..time.106 .and.characterization.53 . prioritizing.proofing.84 .43 .and.Six.cells... critical.. quantification.280 . objectives...21 . Lean.207 .242 .63 .events.customer..receivable.of. common.Sigma.and.10 .280 Voice. reduce. organizational.253 .26–27.251 Visio®.63.279 .281 .... Kaizen.and.analysis... standardization. translating. Variation.and. Kaizen...37 .material..and..129..accounts.controls.solutions.of...business.with.control. standardization.

31..173.285 ....codes. reducing.60. internal.systems.(WIP). Internet-based.84 Workflow.stations.Index  ◾  339 Work.66 ..277..76 X X-bar...278 .104 Workflows..43 Work-in-process.104.. overloaded..120..chart.247.(WM).251 z Zip....166 ..inventory.. 105..119 .management.

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