Lean Six Sigma for the Office

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

Lean Six Sigma for the Office

James William Martin

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

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

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

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

i  ◾  Contents

2

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

3

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

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

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

.

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

intelligence.actions.systems.the.analyze. business.controlling.IT..and.business.and.specifications. modified... different.intervention..these.collection.show.to.hierarchal.or. analyze.functions.can.systems.span.platforms.Six..analysis.team’s.to.Also.business.a.objectives.IT.essential.This.and. used.methods. are.workflows.system. manufacturing.be. example. (BPM).and.in.globally.information.significant.operational.how.and.(BI).monitor.data. are.process.this.Lean.service.workflow. where.normally. book.impression.a.analyzing. can.As.improvement.by...and.improvement.systems. process.be.charts. business.and..do.environment.made.require.systems.management.refrigerator.may.data.an.include.formats.manufacturing.between.location.a.BMA. those.by. modeling.pull. within.information.identify. a.specify.controls.of.some.set.platforms.other. annoying.hierarchal.from.to.operations..these..modified. cultures.and.relationship.into.or.effort.business.. example. include.system.approach. of.process..is.service. collect.resultant.off.its.should.workflow.is.systems. a.a..taken. because. same.transactions.opportunities.of.management.examples. control.have.embarrassing. Also..been. components. A.and..work.activity.methodologies.a. specifications.other.types.as.to.and..integrate.required.(BAM).applied.business.system.world..A.work.monitoring. manufacturing..for.drinks.in.specific.monitoring.of..data. discussion. process.goal.process. occur.minor.processed. However.(BPM).collection.monitors.monitoring. BPM.improvement. without.across.flip. methods.be. odeling. is.summarized.manufacturing. than. systems.to.As. management.locations.few.discussed.some.operational.structuring.these.is.major.business.have.systems.example.functions.highly.a.are.workflows.be.business.process.applied.are.usually.positioned.goals..the.lower-level.a.to. The.disparate.globally.workflows.complicates.to..xii  ◾  Foreword invoices.marking.very.and.usefulness.platforms. as. even.data..several.degenerate.a.level..operational.resultant. As.several.of.I.transformed. of. assessments.using. In.in.professional.a.across.because..be.to.. methods. tools..environments.data.several.object.opposed.service..As.. summary.organizational.and. IT.situations..an.relevant.resources.in. software.Common. to.dispersed.to. major. In.result.integration. and. business. different.systems.be. .improvements. (WM).IT. manage.an.and. an.(EAI).is. and.and. found. process.the.enterprise.(BAM).when.a.Examples.systems.activities. modifications..and..ability.that.occurs.a.application. and. efficiently.deployed.analyses.. improvements.it..rules.may. hardware.above.tend.However..such.where..a.unwieldy..As.situations.IT. As.there. m .detract.difficult. in..to.similar. situation.applying.dispersed.because.but.seen.. a.analysis.in.within..informational.maintenance.system.platforms. telecommunications.this.for.efforts.example.must..gathered.the. office.and.model.of.improve. similar.systems.disparate.activity..high.and.collected. systems.as.consultants.several. focus.system.when. which.useful. IT.system.The.process. such.an.not. workflow.office.the. this.the.with.systems.inconsequential.across. in.integrate. improvements. the.somewhat. workers. these. to.capture.to.greatly.operational.of.that.when.design..of.will.to. platforms.or..Each.common.process.it.. process. organizational.may. in..Sigma.their.for.mechanisms.flow.(BMAs).across.manual.on.management.of.middleware. these...are. activities.These.benefits. between.part. of.collect.measure.some....varies.. book.

of.book.software.Elaine.in.as.operations.thank. Excel. improvements.are.been. These.needs.identification.discussed.and.and.thank.Minitab®.has..covering.Ozarski.Each.chapters.may.professionals.to.of. of.complimentary.expectations..and.cultural.strategic.who. systems.need.topics.on.my.Kaizen.improvement.range.will.result.150.funds. help.and.my.dynamic..project.these.their.her.and.be. the.Crystal.practical. written.this.. the.organization.observations. process. is. found.owner.Oracle’s.clients.also.students.book..deploying...culture. effective.the.in.improve.for.in.areas.done.for.principles.husband.in.environments.as.tables. improvement.mutual.. As.and. support.industries.Lean.book. and. book.important.and.provided... evaluation. me.cultural.be..are.the. integrated.importance.and. .Jeff.. It.work.writing.their.required.of.as.by.work.heavily.people.this.operational.. and..and.for.product.accomplished.alignment..Minitab™.data.In.insurance.application.emphasizes. a.ensure.the.a. is. form.must.and.a.and. from..I.reference.context.and.Auerbach.more.. my.by.contain.later..Finally.for.team.major.Six.Statistical.the.to. to..the.as.local.Consulting.the.are. ustomer.I.as.Companion.be.that.sustain.the.and.more.as.improvement.aspects..goal.dispersed.The.concise.and...are.applying.written.organization’s.that.banking..well.this.senior.document..a.productivity.family. contain.transitional.Also. tools.learned.elements.write.improvements.to.lessons...the.In. improve.of. that. a.systems.figures. that.improvement.viewpoint.change.of.a.As.to.service.Sigma.used.result.senior.differently..and. execute.this.who.organizational.Providence.comprising.a. opinion.identify.also.nine.source.and.have.also.team..for.than. sustainable.anywhere.tools. simple.the.O’Connell.many. Understanding.marketing.the.software.Lawrence. process.to.the.tools.building.copies. workflows..thank.manufacturing.nine.I.of.service.this.events.Ram.service.of. and. as.elegant.create.book.of.help.well.words.rapidly.Gelrad..operational.projects..this.book.my. of.by.collection.must.of.book. numerous.manager.your. your.of.systems.information. c .the.chapters.other.president.. orkflows.activities. transformation.and.impact. templates.to.IT.key.meet.In.Six.and.systems.Raymond.of.inspiration.of.the.Sigma.checklists.data.that.for.chapters.the.Goldman.Software.have. may.collected.process. Kowansky..proven.to.well.and.hands-on. I.model.can.and.such.College.year.alignment.change. measured. and. such.a.as.Quality.as.opinions.Josyula.of.encouraging.as.process.road..past.well.Foreword  ◾  xiii w .and.of. in..the..retail.methods.editor.considering.topics.other.practical.their.operations.book.. are. provided.world.process..In.people..this.manufacturing.that.identify.these. on.from.Lean.activities.summary.methods.of.practical.globally. as.analyze.maps.service.organizational.methods.context.Ball®.rely. graduate.practical.to.contains.in.of.than.of.virtual.as.of.this.the.

.

ten. government. deployment.trained.has.College.. since.University..resource. Rhode...operations. executives. chain. an.the.. College.economic.articles.. and..corporations.inventory.. of.has.. served.services.controls.insurance. University.. engineering.research. including...(CPIM)...is.commercial.is.As.the.member. south.Integration.more.He..Quality. supply. banking.measurement. of.engineering.(CQE).of.(ASQ). in..management. black.a. related.leading.Sigma.Australia.president.a.a. and..of..(CIRM). Korea..products. belts. APICS.holds.certified.aerospace. holds.Lean.management.organizations. methods.improvement.Northeastern. and.process. champions.forecasting. 1.in. across. Island. from.. Graduate.. Sigma. Society. patents.quality. belts. He.W. written...About the Author James.in.sales.Sigma.is. School...and. courses. for.in.. He.Six.and.management.. the.Sigma..a. Lean Six Sigma for Supply Chain Management: The 10-Step Solution Process.successful.industrial.North.Europe.Martin.a. products..the..Boston.has.and. Six.Operational Excellence: Using Lean Six Sigma to Translate Customer Value through Global Supply Chains.Martin. MBA.quality. manufacturing.and. and.electronic.American. quantitative.of.consulting.books.Six.manufacturing.financial. Singapore. China.and. as. more. at.Mr.and... ailand.industrial. belt..an.work.and. and. counsels.. x .and. than..and.MS.a. This..America.operations.He.certifications.production. black.Six. Japan..500.Sigma.integrated.located.Inc. consumer. Th .author. equipment.Lean. Business. He. and.for.. several..Providence. subjects.led.. green.MBA.of.as.consultant.in. organizations. candidates. teaches..is.. applications. than.included.mechanical. master. and. Lean.component. also. in.engineer.building.of. instructor.service. has.assessments. Providence..member.He...and.and.well.numerous.residential.firm. and.Lean.BS. has..mentored. Malaysia.on. years.. 1988. also.an.retail.systems. as.Six.

.

tools.to.stored..technology.increasingly.to.systems.transaction..challenging.auditors.service.work.. easy.business. a .and. hour.be.in.in.eliminate.information. analyzed.been.these. various.having.cycle.improvement. combined.process..is.uptime.implementation. IT. and.these..the. it.setup.to.on.cycles..high.an.cycle.operational.applications.as.and. their..yield. This.obtain..to.. because.years.accuracy. nalyses.is.assessment.collection. to. great.workflows..times.cost.rely.manual. relatively. several.manner.As.physically.are..of.on.data. of. information.combination.contrast.a.cycle.(BI). As.models.is.. be.contrast..a.to.count.and.assessment.its. difficult.can.is.methods.to. to. work. Also.useful.management.analysis..Lean.are.related.and. and.monitoring.of.their..coordinated.process..manufacturing. to....systems.Also.that. very.confirmatory.workflow.service.information.this.can.operational.a. and.usually.workflows.gathered.a.the.and.an.(BMAs).and.systems. transactions.generally. work.strategies.time.operational.built.machine.time. transactions.without.applications.system.to.that.concepts.information.business.usually. amounts.modified.which.in..in.business.enables. analyzed.process.in.. is.manufacturing.over.to.teams.these.at..across.work. the.recommendations.high. tasks.several. operations. data.and.activities.causes. straightforward.example.low.In.heavily. However.on..it.systems.a.in.inventory.to. of. it.is. content.found. map. In. systems.the.process.actively.workflows.return.materials. have.using.obtain.collection. to. may.advantage. impact.manufacturing.As. and. directly. work.countermeasures.Although. machine.intelligence.time.improve.and.example. dmittedly.environments.data.team.modeling..in.service.the.track.a.metrics.in. result. but.. repeatable. This.and...fact.day.workflows.(BAM).yields.data. observe....a. and..more.manufacturing.quantifiable.to.easily.from..service.manual.of.(IT).cost. operational. to.difficult..more.relative...is.applied. changes..true.is. collected.this.low.in. are.be.an.the.information.support.collect.a.workflow.(WM).analysis.impact. will.extent.having.points.are..within.such.data. operational.of.collection.data.generally.advanced.systems. xii . and.Lean...improvements. track.a..root.introduction Over.especially.. similar. This.process.metrics.it. process. process. large.data.to. a.characterization.In.to.. that. computerized.systems. makes.service.and.to..IT.process.several.hour. estimate. A .service. can.in.dependent.In..yields.fact.activity..manufacturing.day. be.These.past.key.deployed.

found.we. long.This.system.be. (NVA). customers.specialized.. these..process.used.back-office.the. and.value.work..be. modern.analysts.be.term.be. the.activities.e-mail.system. activities.to. considered.capture.demand.that..is.system.a.to.an. book.have.or...inspection.an.call.the. have.call.include..a. how.tasks.team.or. creates.have. wait.internally.a.system. workers.include.agents.service.how.their.center.has..creation.are.are. calls.this.methods.the.true.characterized.work.operational.important.example. discuss.systems.and.calls. collection.used.. valued. by.of.of..using.ahead.. to.of. how.integrated.can.call.example.by.may.assessment.Kaizen.that.improvements.of.activities.resources.that. are.encourages.dynamics.this.back.organization.service..workflows.manufacturing.impact.the.. values.useful.how.inhibit.testing.other..many. activities.analysis.improvement.create. are. into.escalated.reworking.that.This.of.of.proven.service.shift.activities.or.manufacturing. upcoming.needs.an.evaluate.IT.the.and.Highly.improvement..it.systems.events.center.procurement.any.systems.for.and. detail.is.improving.behavior. automatic.of.call.manual.highly.difficult.are.tasks.be.useful. this.human.engineers.actually.value.shorter.to.relationship.in.. the.customers.teams. ystems. been.to.defined.them.that.the.Six.work. customers.of. with..as. answered.a.customers.these. customers.on. non-value-adding.to.and.and.However.in. system.methods.interfacing. context.consist.IT. s .automated.operations. monitor.complicated. statistics.systems. using.information.may.system.tasks. We.usually.This.map.its.as.In..data.office.reports.to.highly.simulation..team.in.such.within.of.operational.or.and.capacity.those.several.information. with.customers.the. call.that..relation.of.As. work.methods. numerous.data..customer.work.This.a.. if.type. Common.numerous.the.by.value.adjust.information.These.has.the.process.efficient.activities. a .expected.professionals..chapters.tasks. not.similar.a.be.their. that. their.a. automatically.center... organization’s.which.related.tools. will.systems.manual.or. that. and.expressed. chapters.consisting.complaints.various.a.is.teams.analyzing. that.value.collect..to.found.the. in.of.integrated.a. much.discussing..that.. of.“shadowing”. those.of.many. in. are.must.brought.an.by.every.systemwide.call.supervisors. . called.on.together.VSMs. in.operational.advanced. center...and. service. (VA).professionals. on..financial.long-term.assessment.. In.transaction. emphasis.location.rapid.product.successfully.such.work.service.value-adding.this.little.features.in.as.especially.making. to.assessment.. of.an.complicated.stream..collecting.which. data.system.perspective. important.attorneys. Lean. standardized. to.associated.from.do. a.to..Sigma. and..as.collection.operational.As. activities..complicating.may.teams.. systems.facing. models.work.other.methods.concept.and.In. to.meet.network. enter. many.accountants.are. IT.to.that.observe.situation. An.within.can..be.with. numerous.is. collection.these.book.either.work.similar. is.they.day.many. ctivities. to.industries.may.and.begins.audits..a.work.organizations.systems. analysis.. whose. centers.to. they. their..the.a.Offline.enable.types.of.if. that.very..(VSM).of.basis.map.the.is.an.as. collected..eliminate.work..data.in.xiii  ◾  Introduction in.personnel.internal.tasks.conducting.are.will..to. an. heavy.to.network.examples.Some.are.similar.to.assessment.customer.must.capture.operational.those. tasks.in.

verify.done.key. plan.an..book.analyze. the. because.analyzed.service. freight.global.work.is.of. been.analysis. well.nine. collection.templates.book.operational.found.an.such. numerous. had. direct. expenses.workflow. will..as.brought. such. workflows. of..is. process”. material.necessary..this.have.classify.the.a.using.describe.a. used. at.be.the.improvement. audits. spent. the. the.various. verify.transactions.time.within.time.was.and. using.the. and. This.summary. plan. interfaces.a.These.major.provide.process.value.a.operational. Data.quantification. global.type. example. capturing. A.and. map.office.showing. office.localized..of.poorly. events.NVA. chain. accounting. concepts.can.analyzed. design..parallel.systems. equipment.I. These. design. and. and. and.or.with.in. process. operations.over..have. produced. practical. how. and.similar.been.measured.book.time.it.of.can.to.smaller.to. to. metrics. manual.taken.using.layout. processes.deployment. marketing.personal. has.use..a.easy-to-follow. several.part.several.to.in. decades. methods.auditing.employees’.in.. their.finance.of.execute. engineering.be.workflows.our.a..capture.of. examples.organizations.. Six.baselines.the. apply.to.work.process.all. Excel.discussion. record. process. the.equipment.can.In.determine. operational. teams.sticky.this.to.demonstrate..audits. past.the.comprising. execute. to.Also. the. information. procurement.checklists. a.to. templates.budgets.meetings.notes.a.is.for. also.manual.focus.or. As.rapid.opportunities.clear.is.using. using. can. to.goal..find.This.of.Financial.can.using.frequency..physical. several.useful.. to.the..to.be.purpose.and.of.assessment. information.. financial.calculate. be.methods.book.examples.several.is.years.because. in. Assessment.Gathering.analysis. as. of. .a.difficult..operational.process..of.third.notes.dramatic. as.create.will.where..The. by. VSM.expenditures.. premium.build.In. is.to.methods. and.to.status..content.on. methodologies.organized.be. of. as.reports.In.These.can..structure.Introduction  ◾  xix In. of. Lean. and...are.collection. labor.service. and.for.has.to.provide.production.identify.the.quantification. “walk.during..that.described. technology.conducted.to.. Sigma.wall. and.accuracy..sticky.workflows.. also. relationships. examples.e-mails. VSM. that.workflow. materials. common. to..interviews..past.. dramatic. Kaizen.metric.tasks.service. and.workflow. related.its. deploy.on.to. Finally. Kaizen..the. show. correct. timing..a.also. successfully. of. operations.. process.to.applications. or...similar.is. to.a. over. in.the.Kaizen..data.are. the.assessment.chapters.for.one.outsourced.shadowed.geographically. events. a. create.to.from.to.their. road.other. in.operational.been.percentage.high.this. is. quantity.regard.templates. globalization.increase.the..can. between.of.gathering.be. examples. A. overtime.content..out”.map. from.this.VSM.improvement.road.system..tasks.a.of.work..performance. necessary.projects.by.or.by..“Lean. how. The.second.be. on. resources. impact.place.used.that.VSM.identify. of. Kaizen.the.particularly.assessment. perspective.to.and.days. human.particularly.be.major. organize.VSM.a.work.and. NVA. the.calendars.of.. conduct.tools. the.the.notes.an. People. events.. performance.demonstrate.also. to.count. to.rates. an. of.to.In. containing. supply.also.impact.objective.needed. common.major.data. requires..conducted. converted.stamps.both.can. the. activities.readers..However. be..team. events.a. environments.and. various.by.together. office. the.information.. operational.hands-on.

to.To.of.and.and.from. service.key. also.team.to. first.require.with.identification.also.process.organization’s.of.should.is.how.activities.book. their. tools.intended.that. and.event.discusses. Six. several..Kaizen.assessment.....your.problem.Sigma.this.a.financial.modular. first.manner. to.communications.and..tools..Six.a.we. This.is.event.show.These.. manufacturing. that..and.our.level.alignment.Chapter.that. alignment.be.a.that.this. As..by.strategy.it.high-priority. tend.and.review..thus.will. Kaizen.. strategic. include.because..begin.to.opportunities..a. modified.objectives.work.of..Six. identification. three. drive.the.a.Also.projects.deployment.systematic.reduce..Sigma. topics.as.of.improvement.of.as.benefits. a.workflows.Sigma.Lean.project.or..this. been.a.deployment.I.plan..a.goals.business.have. These.global.written. a.events.correct. improve.of.show.be.result.use. project.Six.elements.for.and.major..of..the. It.Kaizen.be.events. of.chapter.that.important.process.with.Kaizen.event. discussion.Lean.linked.as.of.. systems. teams. that.enable.necessary..focus.that.benefits.full-scale.major.can. as.manner.strategically.yields.a. and.a. are.to.These.using.it.difficult.other.a.of. book.operational.disconnected. .concept.a. provides.charter.to..include.identified..by.and.Lean.This.implies.and. have.topics.solutions.identify.It.this.A.an. the.problem. The..strategically.aligned.rapid. currently.and.contains.in.are. and.single-process..several. book.are.events.local.over. goals.global.a. used.approach. is.system.and.underlying.these.and. objectives..increase.by.This. organized.level.to.Lean.has.discussion.of.their.areas.in. divided..to.to.fourth.the. objectives.goals.resultant.of.useful. system’s.evaluation. to.align.workflow.events. the. in. been..project.planning.work.templates.Six. is. several.and. of.approach.have.cycle.sections.well. As.improvements. an. alignment.tools.goals.was. enable.methods.characteristic.root.book.a. resources.be.event.also.eliminate.and.types.supply. but. event.align.alignment.that.been.to.benefits.business.across.the. often.of.objectives. opportunities.the. operational.provides.to.improve.forces.analyze. methods.Kaizen.are...Sigma.causes.of.prior.a.to.organizational.process.because.1...requirements.three. into. these. is.brought.deployments.Kaizen.to. chapters. process.to. is.deployment.a.and. system.many.concepts.at.reinforces. the.tools.cost.. and.In..chain.organizational.Kaizen.deployment.during.achieve. this.goal.organizational.Sigma.process.is.. is.important.strategic. related.an.quantified.supply. missing.that.projects.Kaizen.operations.team’s. to.is.book.higher.The.to. mechanics.methods.to. will.a. alignment.business. important.process.the.to.xx  ◾  Introduction turnkey.of.transaction.to.how.a.time.their.coordinated.higher-level..improvement.events.includes.complexity. discussion.team.that.sustained.to.in. A..at. with. an. analyze.the.in.be.strategically. apply. implies. to.minimum.quantify.an..will.Many.Lean. As.ensure..are. strategic. a. organization’s.Prioritizing.these.develop.alignment.implementation. workflows.objectives.concept.reiterate.Kaizen.solutions.of.alignment.their.executed.Six. in.process.its.how. particular.latest.office. section.Strategy.for. result. of. they.conduct. example..Lean.the.discussion. and.major.together.identified.book.projects.reduce.showing. an.must.and.quickly.Sigma.effectively. characterize. to. events..a.to.time.Kaizen.meet.topics.the.chains.Alignment.execute.the. high-level.Kaizen.of.be.improvement.Lean.Also. strategy.execution.However..

Chapter.tools.using. chapter.sizes Deploying.from.be. from.in-depth.perspective.important.the.higher-level.voice.discussion.setup.unnecessary.why.Lean.hoc.with.concepts.topics.Kanban The.but. as.methods.of..charters.continually.quality Reducing.detailed.mixed-model.Chapter.work The.levels.financially. Chapters.supplier.organizational..discusses.methods.how.Kaizen.and.value.maps.and...roles. of.Project.organization’s.operations.highly.goals.similar.configurations Implementing.Lean. should.an.leader. section..activities.the.activities.quantified.productivity.and.Introduction  ◾  xxi and.members.project.and.(VSMs).facilitators The.responsibilities Selecting.tools.of. of.They.to.systems Creating.demand Reducing.planning.transfer.systems.proofing Improving. an.and.work.updating.1. discussion.Kaizen.alignment.justified. layouts.process. chapters.These.to.performance.provide.an.process. through.these.inspection..visual.actionable.increasing.It.workflows Eliminating..with.and.throughout.Specific.pull.reducing.and.supporting.all.5S.deployed.workflows..several..resources The.stream.map.the.project.and.procedures.metrics .deploy. floor. maps.conduct.networks Implementing.including.with.team’s.of.continues.an.(TPM) Leveling.that.systems. to.be.operational.and.objectives.integrated.operations Balancing..than.preventive.1.necessary.just-in-time. Chapter.include: Key.time Deploying.of.projects...Lean.a. such.standardized.total.important.tools. this.linkage. includes.lot.then.waste Reorganizing.of.more.of.workflow.and.a.and.Kaizen. of.technologies The.on.their.relationships.are.management Using. 6.the. These. event.ad..also. 4.is.and.of.scheduling.batches Mistake.discussion.and.aligned.maintenance.eliminate..organization.a.level.spatial.include: Deploying. via.should.controls.Chapter.and.events.team.material.high-level.to.complexity.workflows Implementing.between. book.of.the.Lean.(JIT).road.major.major.provides. rocess. existing.operational..3.logical.an.charters Identifying.Six.goals.shows.rather.of..a. collection. three.major.the. data.4.manner.plan.methods.The.charters.and.rooms.within.objectives.. p .to.discusses.logistics.flows Bottleneck. second.an.sequential.measurements Creating.customer.and.deployment.importance.analysis.concludes. key.meeting. Chapter. at.process.2.and.of.prior.in.begins.(VOC). operational..Sigma.

. topics.schedule.this.estimating. processes.of. improvement.a. and.and.and.conducting.estimating.team.process.include.Pareto.. solutions.implementation..In.include.a.goals.important.root..is.6.a.aligned.objectives.the.. Six.compare.the. pictures.in.include.with.. percentages.shown. and.of.as. shadowing.levels.of.event..hiring..of.local.findings.elements.and.discussions. work).work. in.topics.metrics..project’s.a.6.revealing.to.and.a. tools..event.Sigma. supplier.this.section..project’s.actual.useful.of. project.data.controls.improvements.of..histograms.discussion..activities.team’s.scatter.management.be.an.management.in.In.long-term. process.operational. Related..a.learned. auditing.Kaizen.to.of..by.each.book...five-why..include.the. findings.setups.for.helpful.is.and.did..include.process. Lean.to.for.times.. tools.product.4.ends.process.and.our.area.charts.workflows...activities.secure. reinforcing.systems.to.Kaizen. root.discussion..of.to.).other.analysis. root.new..continued. graphs.Lean.concludes.operations.product..by. new.strategic...did.lessons.topics.similar. necessary.inspection.The.. time.discusses.for.4.include.new.the.Chapter.includes. cause.checklists.improvements.operation.risk.obtaining. event. VSM.this.management.waiting.to. spaghetti.plots.topics.. effective.performance.data..that.the.Chapter.Y. and.times.forecasting.matrices.Chapter.job.goal..(SPM). organizational.cause.a.scrap..presentation.of. analysis.employee.implementation.project. discussion.to..serving.are.standardized.using.implementation.Our.be.work.communicate.setup.. business. that..Other. context.operational.percentages.to.research.training.. standards.cycle.5.related..to.analysis.(C&E). operational.charts.new.downtime.controls..Chapter. can.current..These.These.to.Chapter.accounts. developing.identify.performance.of.. behaviors..taking..and.the.the.the..presentations.team’s.opportunities.owner.xxii  ◾  Introduction These..Chapter.to.focused.series.importance.improvement.an.develop.and.new.organization’s.Sigma. to.include. include....develop.plots. The.. and..financial.etc.issues.from.countermeasures.be.and.and.and.diagrams.management. analysis.analyze.lessons.(what..learned.case.training.Chapter.discussion. Major.This..how.VA.worst.sustainable.collect.4.these. job.recommendations.or.of.are.to.receivable.rates..metrics.areas. and.(mistake.in.work.support.a.build.cause-and-effect.rework.proofing.rapid.best.changes.and..will.new..is..Chapter.versus.In.improvement.use.discusses..these.solutions.discusses..and. tying.development. diagrams.eliminate.presentations.the.transitioning.book.Kaizen.. Important.of.Six.management.Kaizen.a.6.how.production.process.addition.examples.cause.new.control.transport. methods.with.X..how.to.Chapter.second.process.focus.real. developing.the.on.documenting.benefits. methods.to.to.Key.not.the. office.the. include.it.capacity.third.from.analysis. a.is.to.an. processing. product.implementing. team’s.translated.documentation.of.operation..and.section.3.and..a.tools.a.and.box.the.business..for.people.This.process..discussed.6.project’s. improvements. .time.marketing.

Align improvement opportunitieS 1 .

.

have.Lean.voice. find.personal.instruct.to.employees. their.and.employees.geographically.deploying...supply.that.the.work.this.of. supply.and. organizations. accounts.book.an.due.difficult. properly.the.be.significant. consistently. operational.mistake.tools. technologies.may.Chapter 1 Strategy Alignment oeriew Today’s..customers.called.context.other.and.and.in.standardizing.organizational.cultural.be.methods. In.service.and.complex.and.considerations.be.cycle.. translate.the.In..as.a.to.have. applying.Also.time.based.. Lean.as.and.organization. process.application.more.one.sales.include.the.to. a.be.across..performed.levels. methods.of. invoicing.tend..require.process.of.are.concepts.most..well.office. Unfortunately.consultants..direct.straightforward..employees.than.but.but.this.be.. and.department. customers. As.genuine.chains.country.This.functions. global.with.may.dispersed.operational. an.complex. integral.failure..an. many.times.of.demographical.. systems.of.global. chains.to.major.customer.that. workflows. to. 3 .focus.standardize... an. the.lack.lower.Lean.of.itself.These. may.world.systems.tools.several.is.world. shown.customers.. to.are.environments.on.process.is.to.marketing. of.on.their.the.quality. difficulty.language.hard.deployments.way.standardized..been.is.core.Lean.the. example.higher.reside.It. of.Simplifying.functions.receivable. have. shown.processes..Organizations.geographically.the.simple. requirements.is. needs.management.suppliers.and.that.The..tools.Lean.people.over.across..(VOC).general.will.across.located.methods.effective.and. and. parts.designed.or.and.reasons.invoicing. process’s..different.simplify.....of.a..resource.systems. These.of.are. through.modularly.subject.apathy.dispersed.patience.always.its.the.a.Lean. are.will.the...and.of..in.mixture.involvement.allocation.methods. that.countries.cost.translating. myriad.proof.may.

properly.book.the. This.in. compete. maintenance. future. mapping. an.organizational.low. improve. an.failure. advantage. its.their.process.take.and.be..Lean.for.extensive.selected.management.also.learned.know. with.that.not..the.focus. their.be.reason.them.Employee.continuously.over.a. with..of. achieved. several.setting... over. Employees.deployment.important.analyze.that.annual.then. projects. their.another. and. .apart.facilitators. or...”.to.. methods. tools.its.area.is.reason. support.associated. analyze..process.Figure.hands-on.and..resources. many.based. meet. in. plan.In..is. work. there..measure.third. or.consistent.their.because.execution.as. and.employees.Lean.training.focus.then.to. defines. employee.lack.improve.if.and.employee. normally. improve. or.process.and.that. that..However.are..experience..Lean.for.or.projects.suboptimization.is. Resource.is.made.not.time.tools.tools. proper.performance.. a.an. Then.dysfunctional.operational. operational.management.prioritization.for. their. events.workflow.this.sufficient.occur. projects.major.lack.initiative. operating.the.of.planning.improvements.will.employee’s.. an. follow.requires.and.performance.culture. process.and.does.organization.to.into.and.strength. and. improvements. set. tasks.Lean.specifically.The.major. the.that..practical. The.they.events. expanded.strategically.make.the. rapid.4  ◾  Lean Six Sigma for the Office management. process. is.work. be.events. they.or.managers..methods.deployments.is.projects.able. What is Kaizen? The.summary. Also.intensive. issues.is.that.Properly.or.These.Lean. employees.tools.events. and.of.by. only.zen.A.a.are.well.are.require. may.will..simple.methods.issues. must.a.particular.an.can. that. to. they.deployments.Kaizen.“to. a. the.are. Kaizen.contrast..have. the. within.kai +.to.lack.use.if. work.. setups. example.sustained.in. over.by.strategically.“to..through. isolation.will.a.their.to.time.this.rewarded. job. Kaizen..a. initiative.will. usually.priority..analytical.accountability.using.knowledge.Kaizen.occur.apathy. deployed.a.reasons. other.workflows.from.take.management.more.organization.experienced.incorporate.as. a. that.1.good. organization’s. process.of.in. are.have.1.incentives. expectation. can.practical.must. practice. to.do. or. must.deployment.of.and.of.aligned. or.on-the-job.Lean.failure.when.they. good. specific. many.Prioritization.tasks.manner.support.as. deploying. As.apathy.Projects. stakeholders.be.In.. Lean. force.contract.fail.initiatives.that.. will. use..continuous-improvement.aligned. including.. proper. as.has.apart”.support.or. tasks.are.by. operational.this.and.is..changes.it..a.by.that.be. tasks.analyzed. Organizational. complete. that.In. important. be.a.lack.on. subspecialties.an.difficulty. the.teams.culture.Lean.an.workshop.to. from. improvement.within. An.measured.a...aligned. planning.not. key.sequentially. on.and.will.Kaizen.and.need.should. fact. that.that.incentives.require. disciplines.days.many.operational.resources..and.analysis.Lean.a.such. of.on. in.of.training. make. conducting..execution.methodology. to.support.of. would.not.organization..and.projects.selected.and.not.in.an.for.Lean.If.situations. annual..process.power.workshop. projects. are.

.in.an.of.with.its.projects.contributes.that. many.These.metrics.improve. within.Lean.long.in.many.the.be.application.does.Strategy Alignment  ◾  5 “kai” + ”zen” = “to take apart” and “to make good.identified.gaps.completion.very.reason.attention.too. that. tools.in.to. methodologies.mentioned. investigations.time..difficult..integrated..often.1 What is Kaizen? although. begin.. and.example.that.have. an.is.its.cannot...complicated.of.tools.the.using.gaps.using.rapid.been...that. the. training.I.of.in.fact.in.environment.environments.initiatives.but.is.execution.and. the.important.such. strategically.in.projects. office.5.are..tools.identification.Sigma. Six.obtain.tend. complicated.Six.Lean.(DMAIC).it.been.rather.in.that.of.improvement.improvement.correct.projects. require.the.by.due.my. approach. project.place.or.1.project’s..such. are.frustration.other.is.best.have. phased.In. is. the.analyses.operational.process.This.Lean Six Sigma. with..may.improvement.all.have.because.control.and.words.complicated..situations. methodologies.of.As.through. there..project.they. aligning.in..several.to.methods.when. initiatives.This.process.take. the.described.process.Sigma.are.work.to.In..prioritized..characteristics..One... require... environments. and.improvement.office.some. methodology. project. of.. It.are.a.once..business. several.specific.not. in.phases.Six.. Also. The. analysis.. are.using. much. process.is. Six.a.and.tools.to.an.and.that. extensive.methodologies.practice.activities. Table. problem.people. potential.through. to. execution.approach. found.tools.the.executed.opinion.and.However. define.have.tools. to.the.compares.and.slow.greatest. obvious.data. phases.are.its.executed.selected. activities.years.the.employee..DMAIC.an..Sigma.created.and.Kaizen.We.above. create..it.overly.statistical.time. office.is.to. cause..improvement.using.correct.6.it.be. Six.process.organizations.utilized.eliminate.is.infrequently.benefits.the. DMAIC.and.Sigma.analysis.As.improvement.and. between.as.been.its.and..structured.are.project. statistical.mean.Performance.organization. . A. five. is.project.together.at.these.is.this.to.analyze. three.objectives..Kaizen.integrated.service. similarities.emphasize.bring.using.represent.and.improvement..problems.three.have.everyone.analyze.will. a.Chapters.for. may. reasons. improvement.tools.use.Kaizen.has.operational.an.analysis.consulting.pace.identification.depending.the.events.relative.highly.properly.that.analysis..may.1. subsequent.performance.their.methodology.methods.Kaizen.of... Six. processes. accelerated. execution. cycle.intensive.for.powerful.other.to.This.an.which.the..an.diverted.used..recent.many.Many.Lean.to.that.than. by.at.does.opportunities. would.Sigma.by.simple.methods.timely. context.problem-solving.discuss.variety..on.not.process.of..project. financial.term.months.from.methods. root.or..in.data-intensive.my.the. recognized.workflows.methods..deployed.analyses.” Continuous improvement teams analyze process workflows using simple analytical tools and make immediate improvements.. Figure 1.misapplied.measure.executing.due.but. that.process.and. a. is.Sigma–style.or.major.Lean.a.only.

Kaizen projects. TPM to increase adding content. SMED. around project charters. Align process analysis Align process analysis Align process analysis and and improvement with and improvement with improvement with the the voice of the the voice of the voice-of-the-customer customer (VOC) customer (VOC) using a (VOC) using a value using a value stream value stream map (VSM) stream map (VSM) of map (VSM). similar information. the gaps. TPM to increase value inputs (Xs). work area associated warranty. Six Sigma. or quantitative the process workflow or customer information a floor layout of the related to complaints.1 how do lean. . and with the project charter. adding-value content. Six Sigma evaluation. the gaps. value-adding content. and Kaizen Compare? Lean Six Sigma Kaizen Identify performance Identify performance Identify performance gaps and create project gaps and create project gaps and create project charters to close charters to close charters to close the gaps. Standardize and mistake Build models relating the Standardize and mistake proof remaining poor performance proof remaining operations using represented by an operations using several Lean tools output metric (Y) to the several Lean tools including 5S. around a single project charter. Optimize a process Optimize the process Optimize the process workflow to ensure its relative to Y by workflow to ensure it operations meet the changing the levels of operations meet its takt takt time with a high the Xs.6  ◾  Lean Six Sigma for the Office table 1. the root causes for the root causes for poor performance from poor performance from a process a process. time with a high adding-value content. root causes or key including 5S. Use VOC and simple or Use VOC and simple Use VOC and simple process analysis tools to process analysis tools to complex data analysis tools to eliminate the eliminate non-valueeliminate non-valueroot causes for poor adding operations and adding operations and process performance. lost sales. Projects requiring Projects requiring Projects requiring process analysis tools statistical analysis tools process analysis tools and several weeks or and several weeks or and only several days months for execution months for execution for execution are are selected for a full are selected for a full selected as Lean evaluation. Train and deploy Train and deploy Train and deploy improvement team improvement teams improvement teams around project charters. SMED.

or.as.not..step. valued.It.deployment.by.days..layouts.tools.to.chapters.similar.analyze.proofing.approach.constraints.be. (VA).for.Six.of.and.redesign. activities.tools.although.business.classification.analysis.as.operational.from.technology.one.anticipated.eliminate..in..statistical.use.non-valueadding.Lean. or.selected.requirements.or.a.requiring.weeks.and.external.of.eliminate.customer.. that. operations.improve.organization’s.a..tasks..process.necessary. may.from. close. well.require.few..Sigma.simple.in. are.project.VOC.should.months.process.projects. problem.of.poor.a.problems.goes.simple.the.projects.improvement.aligned.This.In. to.discuss.should. incorporated.sales. However.Six.operations.Kaizen.work.to.be.or.the. requiring.due.statistically.process.localized.In.the.deployment.employee..projects. necessary.of.methods.analyzing.a.root.defined.or.methods.building.identification.well.local.process.events.objectives. defined.specific.cannot.customers.methodologies.likely.work. information.root. integral.improvement.mistake..for.because.analysis.be.data. project.methods.Kaizen. different.causes.to.include.most..VOC. expenses.workflows.a.It.and.the.identify.as.use.are.selected.as.to. as. into.quantitative.toolsets.eliminated.improvement.value-adding. by.months.this.the.or. the..that.actionable.this. others.the..customers.three.as. cause. activities.However. are.be.lost.regulatory.opportunities.several. These.eliminated.less.several. (BVA).the.a.an.are.contrast.three. assignment.training.particular.part. may. carefully.will.tools.analysis..methodologies.operational.for.an.valued.and.requiring..Kaizen.incidents.team.of.These.poor..operations.training.simple.perhaps. but..a. warranty.for..major.in.or.of.(NVA). external.tools.execution.Strategy Alignment  ◾  7 for.as.that.process.and.for.have.the.similar.the.Lean.of. include.for..a.the.workflow.from.business.a.methods.work.similar.In.Kaizen.opportunities.process.and. project..a.value-adding.as.analysis.identify.eliminate..and.should.Six.includes.In.are. goals. and. statement.their.candidates.is.events..they..such.more... We. All.remain..charters.also. be..steps.analysis.non-value-adding.causes.some.process.for..selection.floor.operational.business.often.of..immediately. customer.may.events.the. performance. simple. .performance.with.tools..with. satisfy. are.further.already.work.any. charters. one.identifying.stream.to.project.Kaizen. been. (VSMs).the.tools.several..area.will.a.value..root. subset.causes.selected.can.be. customer.analysis.a. as.. an.customer’s. process.require.regard. examples.those.to.as.different..use.projects. in.to. as..example.analytical.words.of.as.will.. complaints..execution.As.. to.causes.VOC.workflows..poor.book. objectives.work.tools.well.types.methods.NVA. must.tools. and.other.and.performance.other.a.quality.Common.process..of.applying. are.then.noted.third.of.prior.tasks.should.and. because. gaps.based.process.. operations.that..identify.teams. operational.analysis.Sigma.complex. to.be.identify.and. to. more.aligned.information. advanced. operations. a.be.projects. without.with. they.with.and.weeks.. are. charter’s.is. often.and.charter.gaps.process.only.use. and.workflow.of.to.and.are.process.an.work.permission. a.execution.mapping.standardization. external. performance.the.are.eliminate. Sigma..projects.required.of.maps. BVA.well.an.first.Lean.aligned.upcoming.project.this.create.tools.data.for.or. process. tools.and. not..operations.independent. structured.for. failure.rapid..operations.area.analysis.to.to.of.performance.. A.and.The. Specific.may.simple.VA.or.contrast.noted.

.changing.not-for-profit.of..A.Six.increase. Sigma.discussion. (TPM).other.an.. if.to.the.minutes.and.Sigma.8  ◾  Lean Six Sigma for the Office improvement. minutes.Lean.root. dies.it. rganization.be. organization.goals.because.value-adding.qualitatively.as.cost.tools.and.work.goals. and. first.for. tools.tools.and.TPM.products..to.standardized. be.levels.concept.Lean. 5S.applicable..and. organizational. efficiency.effectiveness.chapters.Sigma.this.heavily.(Xs).and.of.statistical.and.will. to. (SMED).and.shown.available.because.organizations.analytical.metrics.=.increase.data.tools..1.Lean. include.of. are.content.initiative.and.outputs.as.the. workflows. methods.as.combination. will..methods.a.to. mistake-proofing..of.tools.. right..mentioned. be.takt.takt.collection.and.. process.or.produce.. services.of.is.Figure.value.will. work.discussion.. projects...the.may.controls.with.. its. standardize. preventive.Six. business.process.relative.alignment.customer.and. the.of.implementation. to.. process.sufficient.of.high. in.been.following. integrated.quantitative..sustaining. it.analysis.100. process.causes. to.and.example.. the.. stakeholders.requirements.performance.by.Common.show. Our.objectives. and.projects..process. meet.output.. simplify.This.the. the.Takt.can.100.a. and.tools.is. identified.Xs.build.be.simplified...and.inputs.well.3. key.in.an...will.As.projects.methods.major.work.value-adding.one.Lean. all.process.if.process.the. must.defined.to..time.constituents.lower. and.utilized.methods.well.is. then.against. and.But.shareholder.business. increase. process.for.Six. work.waste.methods.organizational.(Ys).and.Six.its. per.equally.. is.inputs.objective.activities:.are. o .10.measured. 5S..between.Measures. be. improvement. they.These.on.achieve.of.unit.level.alignment.projects. maintenance. minute.In.Sigma.improvement. workflow.these.poor.principal.value-adding.measured. subsequent. standardization.organizations.objectives.relationships.order.that.and.ensure. to.by.Ys.an..required.setting. methods.be.or.calculated. mistake. applied. units.causes.operational. and..models.and. Strategic Alignment Strategic.in. used.methodology. proof.improved.efficiently.per..achieving.or.at.well.goal.process. operations.the. a.data.from. in.the.of.project’s. the. include.require.tools..the.to. meet.process. in.units..key.standardizing. Sigma.complex.critical.efficiency.increase.Kaizen. ensure.use. available. will.will.analysis.is.. of.to.Consistently.of.and.to.pattern.process.the.and.. using. as.is.when. addition.shining.tools. to. commitments.be.performance. and.by.used..will.. regard- .based.predetermined.Chapter. produced.that. day. single.commercial.as.unit.its.is.root. standardization.an.are.a. are.has.discuss. day. this.poor.their.Lean.In.as.time.content.as.reduce. 10.in. productivity. 5S.sorting. effectiveness.value.optimize.the.and. can...eliminate.minutes/10.an..to..resources.methods.2.the. place.a.Another. It. per.and.elementary.context.simpler.are. metrics. productivity..in. SMED.. a.mistake-proofed. enable.and. total.as. their.quality..countermeasures. proofing.time.represented.. increase. the. ones.in.to..content. mistake.need.process.these.time. exchange.for. standardization. Six.there.to. We.content.methods. In.

the.are. organization’s..a.has.to.this. organization..activities.are.ratios.metrics. (EVA).impact..support.stakeholders.to.initiatives.or. with. long-term. less. operations. value-added. positively.aligned.nonaligned.in.income. These.are.objectives.of.improvement.or.. along.adjusted.. financial. high-level. uccessively.execution.economic.2 Strategic alignment.direct.strategically..are.Strategy Alignment  ◾  9 Shareholder Value Productivity Stakeholders Voice of the Customer (VOC) Financial Metrics Operational Metrics Performance Targets Initiative Projects Figure 1. an.shareholders. targets.commercial.and. well-managed.versions.if. associated. translated. an. can.to.defined.that.organizations.several.enterprise. should. including.expenses.made.of.a. through.that.key.material. constituents. other.the.is.lower-level.its.irrelevant.is.metrics. and.sources.an.These. dismiss.calculation. operating.adjusted.running.The.investment.the.stakeholders.other.its.revenues.aligned.of.the.is.. have.employees. inputs. organization. are.organization’s.between. with.is. .on.Outputs.ratios.outputs. impact.These.and.its.understand.shareholder.there.based.relative.targets.managed..resources..be.business.labor. on.organization’s.one.for.operational. targets.. be.it.shareholders.. through.goals.. organization’s..organization.rates.financial. lower-level.and..Although.targets.Some.is.poorly.these.then.to..and..a.are. these.an.metrics.and. its.mistake.EVA. are. stakeholders. Organizational.including.to. because. all.cost.sales.noted.are.the.of.and. an.having.another. out.stakeholder..interest.executives.one.that.initiatives. sorts.organizational. an.regulatory. improvement. activities. productivity.receive..strategy..EVA.income...governmental.Organizations.of.for.shareholders.or.is. agencies.operational.may.that. productivity.used.capital.type.of.It.than..financial. supporting.a.as. trategic.similar.as. s . success..structure. s .include.Inputs.exchange. higher.productivity. EVA.and. Once. negatively.should.Productivity. into.of.. suppliers. communicated.or. supply. chain.easiest. down.profit. or.but.linkage.productivity. and.an.their..complementary.and.

is. the. mistake-proof. Every.future.that. to. characteristics.organization. relative. cause.consistent.show.Other.on.preventive.the.with.success.must.management.been.variables. low. information.strategic.in.tools.senior. time.time.characteristics. to. However..the.accelerate.gaps.into. with. unique.long-term.. vary. As.Lean. equipment.process. is.other.usually. of.for..hand.executed.at. an. may.10  ◾  Lean Six Sigma for the Office and. model. advantage.problem.appropriate..and.deploy.on.strategies. types. These.use.roles. of.or.are.for. VOC.an. In. eliminate.to. if.people. root.some.business. .assimilated.the. and.statistical.the. initiative.clear.will. has.initiative’s. specific.to.deployment.the.using.improvement.Relative.integrate..success. or.an.business.situations.a.as.using.the.across.is.and.used. then..effectiveness.perhaps.both.of.. identify. with.have.On. required.the..date.lead.some.many.based.However. of.an..the.the.form.an.a.analyze.channels.may.the.of. tools.long. an.be.same.out. the.to. of.be.input. systematically.. causes.. ecessary. project.associated.also.the.(VA). example.several.process.an.function.resource..well. organization. organization.at.be.to.strategies. process.these.with.tools..This. if. structure.deploy. will.may.relating.their.. used. needs.from.initiative.help.responsibilities.Six. improvement. implement..strategic. significantly.charters.. longer.an.These.hand.then. alignment.output.key.and.in.benefits.who.. initiative. their.analyses. cycle. its.. remaining.people.on..There.part-time.basis. and.it.On. part-time.other.in.stakeholders. organizational. a. are. include.and. or.successful.the.variables. standardize.. As.communication. a.eventually.organizations.workflow.workflows..ensure. has.organizations. that.to.functional.similar. process. form. success.root.used.of.these. vailability. deployment. analysis.vary.experts.methods.model. and.alignment. a.deployments.depending.specific. a .process.a..These.levels.to.are.successful.and.organizational.may.industry.process.the.close.. operational.. a. The. simplify.. a.organization.methods.methods.not. benefits.be.is.can.assigned.the.take. strategy.(TPM)..full-time. the.of..training. result.its.goals.produce.increase.that.job. to.complex...organizations.projects.(Xs).the. be. root.. deployment.initiative.of. and. be.use.include.even.can.creation. n .and.on. stand-alone.within.improvement. part-time.initiatives.take.concepts.may. organization.improve. use.then.employees.back.well-defined.performance..basis.important.related. These. strategy.usually. if.required.within.their. a...that.a. to. an.Sigma. metrics.may. anticipated.have. maintenance. this.productivity.on. its.as.to. based. in.operations.have.impact. a.organization. xample.. may.which.industries..characteristics..part-time.. to.to.that.within.an.within. specific.As.organizations. its.a. example. to.. methods. yields.them.causes.other.be.benefits.methods. initiative.. problem.. an.people. which.value-adding.tangible. an.too.commitments. analyze. approach.full-time.. an. projects.activities.(Ys).the.created. in. avoids. improve.communications.several. e ..to..an. on..initiative.an.objectives.toolsets.to.and. an.initiative.of. other. uptime. total.an.useful.is.analyze..Although. that. workflow’s.initiatives. general deployment Strategies The.situation.

.not.are.In.projects..financial.or.organizations.internal.of.other. work.deployment’s. As.roles.revenue..if..their.or..on.In.showing.team.resources.second.an.solutions.be. appear.execute.versus.expenditures.in.to.as.expenditures.or..Some. may.hard.the.practice.The.or.day.differentiating.its. a.metric.workflow.select..stakeholder. project.then.. can. works.this.between.workflows.projects.to.within.an. reduce..by.initiative.rework.to...problems.the.Another.process. projects.that.on. activities.group.In.that.the. operations. these.identification.because.deployed.expenses.work.those.analysis.performance.issues.having.are.common.a..prior. been.and.basis..annual.relative.useful.do. project.full-. balanced.characteristics.ensure.business.an.financial.requires.method.organization’s.initiatives.is.common.more.capability.Another.as.to.are.discussion.Important.justified.eliminate.analyze. activities.customer.operational.improve.deciding.organization’s.process. process.a.from.a. types.their.that.a.that. found.to.sense.of..that.and.projects.operational.deployment. best..align. Project. work..is.“walk.through. have. salary.rigorously..day..this.expertise.increase.the.available.per.benefits.is.a.an..being. have.to..of.The.with...to.are.to.schedule.created.discussions.too..will.deploy.requirement. management.the.As.differentiating.operations.as.benefits..customer..full-time.or.process.will.work.deployment. reports. It.initiatives. never.third.initiative. trained.of.that.example.which..these.having.expense.depends.out.owners.consultants.an..Lean.it. (NVA).identifies..external. some.will.initiative.plan. selection. a.of.and.first.”. be.are.that.done.cross-referenced. .to.not.initiatives.projects.of.characteristic.balanced.be.non-value-adding.preclude.benefit.an.are.to.cost. resources..then.others.hire.of.to.assign.over.a.them.long.well.known.projects..organizational.example.Six.analysis.times.example.perspective. characteristic.between.principles..solution. success.deployment.In.are.of.using. identifies.only.it.met.organization’s. may.objective.they.be.Strategy Alignment  ◾  11 Also.necessary.contrast.execute.an.this.various.time.and.problems.NVA.is.deployments.in. known.deployment.study.have.some.make.Lean.there.in.error.this.been. by.justify. strategy.a. to.the.differentiating.performance.while. deployment.operational. selection.on.extent.reports. be.may.actual.of.of.proven.benefits. projects.fact.are..part.well.sales.deploy.many.The.focus.identify.gaps.Others..high.organization.is.be.process.and.context.map. to.the.organizations. improve. As.can.relates.then.to.then...very.once.execute.deployment.Sigma.actually.the.cycle.an.person.stream.A.level.resources.requirement.to..This.person’s.and.of.meet.a.a.follow.well.if.must.performance..have..This. created.them. on.projects.will. In..(VSM).method.not.project.a. quality.to.satisfaction.in.poor.may.to.the.latter. and.as.successful.situation.using. deployment.the. has. that.continue. not.executed. their.will.factor.and.an.poorly.capital. balanced.that.been.to.include.reduce.depend.these.will.initiative.objectives.methods.multiples.internal.basic.A.practice.known.value.net.that. process. the.loops.savings.to.business.tasks. approach.as.a.part-time. benefits.to.an.on.productivity.In.is.as.be.organization’s.high. process.it.Sigma.projects.If.method.we.walking. business.of.initiative.have.several.on.a.deployment.characteristics.of.responsibilities.increasing.projects.and. There.to.required.rates.they.or.poorly.using.of.initial.are.identify.in.great.a.operational.of.Six.process. to.tasks.of.

clear. have..frequently.benefits.an.available.their.and.who. in.deployments.every.that.poor.efficiently.organizational.because. A. and.they. major.support. priority. benefits.project.required..to..to.is.the.most.prioritization.responsibilities. execution. have. for.to.is.usually. forward. names.complete. determines.and.are..aligned.are.In.form.bottom-up. Kaizen.an. deployments.time.their.A.is. to. leader.projects. business.the.have.for.team.important.2.roles. and. A.usually.. understanding.to.assigned.Informal..prioritization.Effective. including.Also.basis.supporting. engaging.helps.and.strategically. look.cannot. communication. creation.resources. also. have. coordinate.improve.as.financial.resources..This.and. by.difficult.formally.are..based.help..organization.be.initiative..will. depends.their.making.have.accountability. projects. effective. initiatives.ensure.resources. move.Project.them.concept.identified.bottom-up...and.increase.organizational. also. responsibilities.charters..to.Informal.usually.project..to.can.is.consistent. their.a.identify.in. in. initiative..be.effective.and.and.to.. how.Table.sustained. to.are. and.usually.with.with.based..that.important. high. lists.resources.deployments. allocation.a.necessary. prioritization.a. their.difficult. Deployment..process. several. a. operational.must. where. its. commonly. found. structure.discuss.organization’s. Table.on.and...hierarchal.an. projects.initiative’s.that.Six.organizational..of.benefits.or.project. may.for. Lean.. facilitates.contrast.several.business.execution..deployment.and. objectives.isolated.resource.to. over.responsibilities. their.1.12  ◾  Lean Six Sigma for the Office goals. people..do.difficult.be.improvements.to.nonoptimum.leading.with.no..allocates.will. deployment’s. that.and.successfully.its. are. deployment. this.roles.plans.usually.roles.example.an.on.of. roles..will. Roles.resourced. positioned.on.and.have. resource.Chapter. . similar.all.allocation. project. selection. and.. structure. Top-down.will.deployment.makes. a. communications.projects.or. aligned. develops.will. The.isolated.is.assessments. implementation.In. defined.not.communication.be.impacted.their.situation..shown.teams.across.8.organization.responsibilities.This. deployment.because.This.employee. and.project.have.a.needs. team. commonly.formal. responsibilities. and.resources. As. highly.roles.and. resources.business. an.approvals.they.roles.available.and. leaders..their..problem.structure.in.approach.that.3.are.professionals.informal.functional.levels.the.a.benefits. The. e .Sigma.not.deployments.contrast.with.workflows.. for.1.of.are. it.goals.responsibilities.over.promoted.resource.all.a. an.directly.at. that.projects.or.deployments.their. successful.communications. resources.well.result.As.we.effectiveness. on.be. relative.In.on.way.with. of. Sigma.and.aligned.form.integrate. on.communications..Roles. based.people.very.project.an.Lean. initiatives..well-defined.as.local.use.technical.in. defined.responsibilities.and.will.responsibilities.simple.deployments.process. result.project. within. xample.time. activities.not.and. responsibilities..deployment.managing.. differing. on.structure. an.priorities.project.minor.projects.depend..deployment.because.areas... projects.participants. organization. Although..allocation. informal.aligned.an.human.the. show.that.as.the. project.their.that.will.of.charters.and.Aligning.facilitate. to.to.other. A. depend. Clearly.advice.are..prioritization.may..strategies.. dependent. is.and. and.leaders. top-down. and.sustain.and.there.identification. hierarchal. a.tend. risks. roles. that.basic. people. Six. is.

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

schedule.noted. firm. and information technology.to. third.and. and.1. A person who coordinates the planning.Six. Lean.is. are.other.important.stakeholders.deployment.return. with.is. as.activities. on.Sigma.project. masters..responsible.help.and..income.other. People who support the team in its Kaizen activities. operational. these. the.A.project... business..projects.These. and.to.. Lean.investment. belts.members.team. are.contrast. a. Lean.resources..day-to-day. only. finance..responsibilities. that. at..based. activities.other. project.. requires. other. ensure.of.example..3. redirect. basis. he.a. responsibilities. deployments.to.on.and.of.local. .As. have.projects. will.the. several.as.situation.be. such. a. additional.the. as. successful. associated. vice. or. a. for.of.technology. will. provide.creates.Sigma. Table. be..green.a...Six.net. data. A person who provides resources for the Kaizen event.deployment. subsequently. important.are. teams. subsequent..In.improvements.low. total..are.Sigma..a.drag.a. as well as other professionals. organization. These.. roles.collection.work. by.process. respectively.In.and.well.leader’s.charters.deployment’s.implementation. that.deployment. Sigma.required.role.professionals.Roles.definition.project. responsibilities. activities.are.within.It. may. and follow-up activities related to an event.an. Six. Deployment Leader Process Owner Kaizen Event Sponsor Kaizen Event Facilitator Team Members Green Belts/ Black Belts/ Lean Masters Support Personnel on. support.on.on. that.but. financial. and. because.Six.and.Lean. finance... In. process. or.analyzed.is.work.deployment’s. divided. of. lists.coordinate. well.is.priorities. very.benefits. within. Six.champion. execution.role.business.assessment.critical. an.Lean. level. she. presidential.should.. personnel.be.champions.team.owners..their. important.summary.. based.role. analysis. and.extremely.include..operational..as.information... minor.common. situations.supporting.by.for.key.ROI. various..business. if.and. Lean. roles. a.In.summary.not. Sigma. benefits.Champions.and.realized.to. a.if. executed.work.This. maintenance.Lean.an. are.teams.resources.resources.that.to.analysis. The people who analyze and improve a process.support. prioritization. These include maintenance.its.deployment..serve.on. A person responsible for the process in which improvements are made as well as the team members.process.and. also.keep. of. deployed.14  ◾  Lean Six Sigma for the Office table 1.Six. charters.deployments.advice.a. organization. responsibilities. Experts in Six Sigma or Lean tools. prioritization. and..which..obtain.with.schedule.organization. (ROI).roles.important. director.for.resources.a. an. investment.are.. black.. a.Sigma.the. including.relates.3 deployment roles and responsibilities Role Responsibility A person who develops strategic plans to ensure improvement opportunities and business benefits are aligned with resources.data. project..

the.with.. Lean.degree.an. choice. may.. deployments.Support.a.projects.an.role. a.because.project’s. accrue. and.is.prioritized.only.the..hand.benefits.across.the.which.technical.responsibilities.in. be.have. or.to.deal.that.. leaders.with.goals..if.or.is.facilities.type...its. ssociated.required. through..e-mail. rate.will.maintenance. and.. belt.not.interaction.events.activities..current.project.. of. characteristic.and.statement.types. be. better. significantly.against.all.particular.organization’s.accounting.require.who.organization’s.with.annual.A.productivity. a.or.by.its. in.. to. be. a.that.key.selected.Also. may.Lean-based.in.and.specialized. or..change.bottom-up. deployments.and. to.a..coordination..other.of.schedule. a. with.hours.associated.support. Sigma. team.project.on.of.finance..This...roles. associated.projects.Another. project’s.matter.objective.or.access.an.. deployment.benefit. business.a.Top-down.There. support.is.not. bottom-up.the.driven.quickly.of.event.depending.into. heavily.result.expert. personnel.On. bottom-up.facilitator.based.of.process.. usually. are. that.other.execute.a. cause.local.situation. a.equipment.and.be.executive.project’s. a.follow-up.rooms.selected.reason.organizational.to.assist.Strategy Alignment  ◾  15 may.these.a.training.latter.may.normally..integrated. exceed.also.event.Team.usually.. context.owner.In.sponsor.facilitator. a.. than..deployment. . top-down.include. successful.expected.great.also.and.In.team.or.stakeholder.extent.the.. join. event.ROI.business..business.work. problem.are. deployments. faster.may.logistics.projects. benefits.goals.and.to.are.They. it.person.equipment.personnel.experts.a.if. Kaizen.and.other.are.resources.and.resources.objectives. vary.is. problem.hand.days.process. are.on. and.several.example.a..deployments. business. and..charter’s... resources. important.by.planning.project.leaders.actually.for. Six.members. is. Communication.and..sponsor.is..may.a.fact.. In.major.work.are.that. top-down.be.event.be.As. will.expertise.One. formalized.to..in.sponsor.deployments.providing.activities.to..should.they. a..result.identification.maintenance. expert.several.great.double. and.modified.without.bottom-up.running.cause.deployed.the. analysis. a.and. technology. based.event.and. financial.. improvements. at...an.other.and.are..for.analyze. or.The.or.may.other.a.a.isolated.are. may.quickly.. seldom.include.on.to.up.project. their.of.prioritize.their.be.heavily.seldom.will.solutions.because. an.and. the.bottom-up.at. assessments.if..allocate.As.at.then..required. other. professionals. this. expected.with.of.plan. either.event. responsibilities. deployments. between.team.and. black..team.get.workflow.facilitator. may. is..on.join.the.very.strategic. example.events. important.trainers..example.their.because.be.Resources.a. benefits. required.people.cycle.is.An.root.on.other. information.of. by.project’s.also.contrast.the. to. support. then.information.or. events.projects. a .including.capital.to.an. As.the. is. isolated. The.have...will.completed. higher..provide.people.long.On.a.several.time. who.planned. deployment.expertise... created.a.sponsor.a.level.efficiently. operational.rely. those.last.may. an. materials.. of.vary. payback.isolated.priorities.the. of.Kaizen.an. The.incremental. deployment. analysis..who. also.counting.improve. are.an. to.The.to.running. isolated.completion. a. and..competing.sufficient.objectives.and.. data-based. another.in.conflict. isolated.resources.Lean.phones.project.coordinates.and..impact.functions. from. root.necessary.and.negative.execution. roles.

.from. assessment.Six.an. should. also.regardless..be.communication.been.the.belts.as..was. Sigma.in. services. organization.that.well.of.organization.at. It.black.in.leaders.past.is.hundred.operational. reinforce.$10. be.. to. Lean.organization. their.deployment.isolated.organization. closed. shown..regarding. of.similar..contrast. involved.early.their. its.key. to. and.the. organization.will..levels. consistent.times.the.be.very.Communication. Lean.another.communication.advance.deployment.Lean.to. deployment. than.This. information.created.isolated.to.process.it.stakeholders.several.contrast.with. the.levels.a. Properly.is.organization.even.than.an.deployment.that.executed.it.process. execute.less.Finally.been.formally. training.done.small. training.of.every.in. of.Also.a. higher.prior.a.In.and.well-structured. The.$100.particularly. the.in.with.benefits.driven. its. other. for.saved.only... positive..and.Lean.benefits. were. Six.having.initial.buy-in. after.using..per.low.important.deployment’s.of.resultant.It. a.approved.should.lack.a.organizations.that..bottom-up.large.. communication.of.summary. not.organization.aligned.benefits.very.. more..organizational.deployment. communicated.be.because.will.multiple.the. an.projects.possible.communicate. deployment.in.be.several.. has.in.at.is.an.priorities.is.of.will. training.. initiative..activities.organization.initiatives.The.times.recall.few.Six.very.be.smaller.increase.all. Sigma.and.is.just.difficult.million.why.within.from. .competing. this. ffectively.it.project.larger.year.its.communication.be.an.channels.perhaps.because.insist.well-defined.great.more. the.deployment.in.same.deployments.bottom-up.aligned.channels.$20.and.more.project. across.over.However.a.assignment.to.thousand..standardized.per. Six.benefits.procedures.in.the.a.this..several.a.strategy. directly. projects.of.larger. arrival.of. resources.is.business. been. to.revenue.information.In. projects.largest.models.little.a.multitude. financial. with..than.I.organizations.using. process.organization.and.business.. to.and. helps.. than..from. As.organizational.be.match..areas.is.should. deployment.Sigma.for. audience.that. its.These. poorly. improvement.top-down.charters.belts.not.be.Sigma.Six. and.specific.their.modified.champions. ahead.as.top-down. Negative.15.be.and.using.buy-in.also. sustainability.several.several.large.years.hierarchically.in.that.result.have.possible.This.or.using.result.reaching.large.variety.savings. that.Six.its.project.information.average...noted.billion..from.or. has.had.between.It.is.organization. deployed. To.prevented. of.dollars.of. deployment.job.targeted. impact.business.simple..annual.prioritization. characteristics.dependent.was.context. activities.projects.send. of.Sigma.for.is.in. Lean.an.deployment.large..usually. and.with. long-term..a.improvements.effective.higher..financial.will.quantified.were.deployments.place. improvements.in. Lean. My.communicated. schedule.should.. Sigma.important.20...also.16  ◾  Lean Six Sigma for the Office e ..buy-in.Also.because.. messages.sustain.I..000.bottom-up.a.an.deployment. In.did.channels.projects.organizations.usually.it... its.the.were.intended. successful. ability.deployments.its. Projects.the.its.rest.top-down.a.of. secure.100.usually..average..Lean.the.will.discussion.improvements.faster.will.a.audience.structured.a.including.and.one.Sigma.communication.deployments.expansion..will. Six.done.prior. to. These. organization.In.or.that.black. experience.on.This.nonaligned.evaluated.the.of.disparity.organization.objectives.project..

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

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

or.my. into. subsidiaries. in.to.enabled.years.because.a.a.believe.fact.time.some.assumption.several.Singapore..their.provided. college.countries.this.At.observed.. ago. parent.formed. is...the.that..world.complicating.higher.situations.process.goals..teams.also.ahead. period.local. language.when.spoke...previous.in.that.respecting.to.We.and.are.completely.months.they.organization.anthropology.be. course.several.throughout.several.and.par.organizational.to.these. country.that. of.though.diverse.corporation.current.executive.local.I.to.to.seen. was..international.employees.organization’s.translated.of.setup.international. not.and.may.that.or.work.a.at.in.the..major.have.serious.one. teams.mature.and..subsidiary..whom.key.a. As.the..local.major.the.but.or.who.between. the.In.the.arrogant.at.Strategy Alignment  ◾  19 these.outsourced.it.workforce.equipment.and.engineers..attitude.having. example..the.within.global. l . for.employees. .this. may.teams.they.To.transfer.success.our.be. o . Of.inspection.. high-performance.outsourcing.not. managers.simply.local.teams.cultures.even.similar.not-so-successful..our.in.that.of.key.the.the.customs.noted.when.workflow.I.improvements. uncommon.I.people.past.the.work.environments.information.Hindi.are.speak. not.U..always.work.of.global.of.the. not.this.at.have.in. Key. step.corporation.to.situation..However.same. language.many.an.of.of.managers. environments..of. team’s.is.I.of.when.procedures..would.necessary.had.a.These.execute. fully.to.expanded.I. considerations.they.of. major.cultural. Over.a.interact. having.factor.language.that.not.often.book.are. speak.at.respect. teams.but.outsourcing. work.organization’s.with..fact.that.Southeastern.familiar.plan.discussion..a.be.but.from.for.activities..be.organized.be.majored.the. is..The.occur. of.not.relative.barriers. a.extent. olleagues.they.a.In.and.cultural. years.Six.the.will. an.the.Lean.work.and.deployment.because.language. people.Japanese.language.language.facilitators.is.process.seen.several. correctly...work.do.differences. except.recall.they.information..various.the.met..the.this.inspection.we.and.major.technology.procedures.customs.values.effective. little.listening.In.for.events.a. situations. organization.A.major.reverse.educated.local.work.fact.level.parent.successful.and. and.as.missing.his.teams.language.is.of.the.despite.. review.and.to.English.be.several.parent.by.situations.translating.standards.barriers.goes.parent.from..outsourced.breakdowns.Asia. realize.occur.for.I.maintenance.problem.these.factors.is.work.S.I.which.have.will.be.many.of. work.of.across. current.ignorant. cultural. obvious. local.major.translation.is.to.Korean.considered.are. are.often.with. corporations.global.eight.properly.parent. In.schedule.also.managers..may.anguages.workforce.this.local.well.. the.to.Sigma.impact..Mandarin.organization.sent.Kaizen..with.objectives.the.entities.considerations.to.into.the.discussed. utsourced.the.he.the.outsource.a.when. it.these.These.there.who. that..coordinated.are.that...facilitate.managers.was.over.of.level. language.because. several. another.. c . deployment.other..its.in.other.speak. do.which.subsidiary.local. It. and.work.sub.people. the..speak.I.properly.of.who.information. may.long.summarized.. to.activities..managers.Also.entitled.of. and.a.transfer.few.a. local.level. several.examples.the.improvement..Exacerbating.and.all.done.work.an.relocated.Operational Excellence— Translating Customer Value through Global Supply Chains.or.the.have.work..local.other.transfer.end.activities.impacts.

Along.a. operational.because.preferences. labor.and.minimize.and. going. organizations..factors..relocation..local. other. of.to. to. age. locations.local.ensure. infrastructure. to.that.supply. equipment. size. could.line.I.above. available.sources.legal.retained. a..further. occur.an. customers..values.and. its.to.on..complete. the.direct.its.relocation.the.the.religious..outsourcing. It. considerations. environmental.they.political.their.cost. levels..thinks.independently.at..subject. without..norms. factors. proficiencies. population.Another. such.cultural.from.may.also.a.respects.from. partner.. investigated.As.be.or. for.risk. that.obviously. economic. a.discussed. also. there.would.consultants.well.partnerships.which..according. the.and. may.work.organization.of.. it.be.Organizations. capital. other. I.may.and.their.to. expanding.subsidiary’s.appearance.may.but..their. changed.run.specialized.want. example. constraints..organization. activities.be.by. suppliers. at. controls.. reason.risk.subsidiaries. variety. not.international. am. hiring.tolerance.low-wage.they. may..by.As.there. an.or.of.norms.organization.match. education.focus. are. technology.organization. suppliers.of. situations. well. regional.organization.closer.want.Kaizen. or.events.develop. its. of.McDonald’s. unique.without.Developing.its.economic. of.major..subsidiary.core. these.retains.knowledge. standards. workflows.employees.peripheral.its.the.also.organizations.. There.in..may. location..process.work. organization. . work. be.activities.team. and.distractions.a.to.a. have.should.production.be.also. are..workflow.discuss. local. organizations.include.or. for. the.may. have. perspective.enable.their.customers. types.process.the. sense.this.its.continue.international.are. an.to. population..are.variety.or.financial.to.and. Another. local.customers.to. across. operational.outsourced.develops..own. capacity.a. Organizations.create.stores.country.locate.positions.usually.this. as..develop.discussion. important..that.processes. critical. managers. important. such.be.parent. to.as.example.First. language. if.an. In. backgrounds.partnerships.or. a. by. skills.A.consider. managers.government. new. a.the. parent.expertise. is. stability.outsource. to.a.. and. high.factors. or.markets.style. near. outsource.the.organization.as. rules.its.. and.20  ◾  Lean Six Sigma for the Office influences.will.that.perspective. including. that.Consultants.work. subsidiary’s. to. density.considered. their.has. make.locations.sources. outsource.or.to. but..environmental.at. when..relocation.factors.relative. understands.an.that. process. such.center.location.to.must.process.an. be.new. local. organization.modify. necessary.their.also.patent.It. country’s.levels.obtain.of.. and. few..However. of.. not.cultural.with. a. may. and. situations.level.increase.when.portions. the. as. outsourcing.to.of.government’s.international. include.quickly.values.subsidiary.. locate.workflows. and..to.about.These.considerations..regulatory.well.local.it.of.Finally. outsource. should.call.teams. to.as.information.cultural. and.severe. a.a..or.costly.this. These.. partnerships.thought.deploy. as.outsourcing.was.as..within.as.their.to.outsourcing.enforced.of.reason.cost.need.stop.that. fully. parent.new. mandate. country.a.a..Menus. controls.consider..labor.when.to.cultural. to. and.impossible.more.could. may.is.From.the. reasons.an. workflows.and. move.accountability. availability.there.for.customer’s. be.an.an.cultural.closer.under. of.its. the. work.risk.an.high.would.local..issues. distribution.. Demographic.productivity.door.

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

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

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

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

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

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

Strategy Alignment  ◾  27 1.characteristics. 4. performance.into. Implement JIT 6..quantified. Market segmentation. Customer themes or critical-to-quality (CTQs) characteristics.(CTQ). Create Value Stream Maps Figure 1. stream. from. characteristics. Development of projects to close performance gaps.or.7. Eliminate Unnecessary Operations 5. maps. or. (VSMs). with.cost. 3. directly.being. Comparison to process performance. be. Market research.internal.themes.. using. data.needs. Translation of CTQs into specifications (Ys)..7 translating the voice of the Customer (voC) 1. Implement Visual Controls and Pull Systems 4. Develop Supplier Networks 7.3 ten important elements of a lean system.value. Understand VOC 10.and..how.Kaizen.by. Customer demographics and distribution channel. current. p ..related.1. Continuously Update Process Technologies 2.. comparisons.to. value.. rocess.customer. 8. Reduce Product and Process Complexity 3. These.similar.team. 5.. will.specifications. made.critical-to-quality.or. table 1. the.are. reports. 6.expectations.time. Identification of performance gaps. 2.Table. collected. Deploy Lean Six Sigma Teams 9. 7.major.quality. process.translated.workflow.shows. operational. .Ys.successively.into.analyzed. and.the.then.. Implement Performance Measurements 8.

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

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

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

deployed.average.of.matched.these. have.. by.customers.or.in. such..a.Everyday.Strategy Alignment  ◾  31 ±10.to. low.characteristic.complementary. ensure.pricing.supply. capacity.enterprise.organizations.linked.period.pricing.are.will. interaction.are. standardize. on.few.demand.a.level-loaded.as.could. First.book..respect.well.of.everyday.minimize.it. operational.used.the.complicated.supply.is.supply.loading.to..an.products.retailers.effect. to.system.Six.such.as.proof. several.to.chains. and.example..to.pull.are.be.products.the..demand.is.demand. efficiently. this.eliminates.chapters.contrast.supporting.it.low.is. inventory.them.time.that.services.of.systems.This. across.In..In.avoid.ensure.have.In.system.systems.customers.Lean.platforms. when. rather.when.services. In.work-in-process.participants. meet.financial. suppliers..special. electronic.promotional.workflow.. difficult.systems.provided.global.is.discussed...several.chains.systems.complaints.a.system. (WIP).completely.external.can.all. downstream.it.pull. of.their.products.manage.chain.in.. myriad.situations.incentives.minimize. needed.well.an.demand.be.service...be.that.time.across. systems.purchase.variation.pull.of.period.In..However.capacity.demand. systems. organizations. chain. are.so.systems. to.standardize.operations.complex.external.methods.but.of.that.systems.want.important.their.take.supply.between.demand.mistake.which.chain’s.strategic.retailers.supply.words.and.and.operational.are.This.pull.Lean.important.This..operational.it.operations.major.percent.operations. their.in. as.. is.obvious.there. Develop Supplier Networks Lean.system.numerous.that. variation. cards.this.these.available.an.sales.basic.that.it.suboptimize.and.often. important.its.This.to.as.reason.the.In.and.that.the. later.be. important.simplify.as..through..such..the.context.has. Kanban.will.low.chains.the.monthly.minimize.that.important. operations.is.be.performance.As. can. why.demand.pull.these.Wal-Mart.on. complex.are.supply.products.a.integrate.and.services.only.processes.customer.of.increasing.. they.and.either.from.of.this.example.participants.suppliers.concepts.tends.global.of.the.As.created.to..order...likely.later..to.capacity.and.purchase.is.to.materials... a.probability.However.movement.and.manual.many. to.upstream.as.capacity.aligned.must. the. is...or..discussed. at.that.help.. manual. demand. apply.that.several.with.want.efficiently.time.Sigma. .authorize.in.offer.. than.other. This.to.(IT).to.objectives.and.activities.noted. consist.detailed.organization.several.customer. Level.and.we.external.should.the.be. a. to.together.. is..be.the.rework..In.the..work.to. more.Lean.as.must.understand. actual.operations.A.technology. depend.an.through.impact.to.customers.of.match..internal.a. description. it.on.of. linked.demand. system.actions.demand.their.of.will.in.global.and.to.forecasted.systems. In.system.chain.chapters.scheduling.tactical.to.supply. is..variations.systems.of.process.partnerships. utilized.goals. workflows.its.To.especially..a.information.minimize.the.

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

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

.

Six.These. expected.some. milestones.of.financial.finally.broken.people.activities.types. and.activities.used.should.thought.These.operations.or.be.process..required.should..may.as.project. objective.into.a.improvement.improving.be.reside.collection.execute.. Six.can.. Projects.executed.in.work.to.identified.that.identify.work.resources..how. activity.Work.milestones.aggregated.some.tasks. an.are.of.activities.be.to.focus.resource.other.discussed. classified.data.line.of. context.execute. A.that.relative.discussion. and.be.that.Sigma.resource.tools. should.and.improve..words..have. and.experimentation.sequenced.major.. schedule.of.resources.work.work.be.together.also.their. members..operations.tools. or.consist. intended.the.work. clear.down.objectives.of. tasks.describes. also..workflows.which..are.activities.Sigma.durations.process.activities.to.deployed.rapidly.noted.several.as.statistical.into.effectively. be.objectives. assigned..into.tasks.Chapter 2 project identification oeriew In. organized.In. requirements. In. team.bringing.that.them.useful.Alternatively.primarily.more..terms.to. been.are.lower-level.analysis. forms. to.it.time.the. activities. methods. activities.simpler.be.done.However.. this.project.may. their.projects..Lean..analysis.and. exist.testing.of... an.work..plan.that. 35 .completed. this..require.consists.several.that. outcome.work. several.to.A..business.operations..of.It.on. in-depth.broken.types.more. to.metrics.activities.have.and.turn.using..and.tools.require.and.the.work.also.activities. work.in.well.can.of.a.within.should.and.of. book.into.also.and. be.work.operational.as. when.activities. In.down.build.will.the.types.and.work.and. according.project.work.Work.projects. has. in. completed.requirements.be.to.our.can.requires.are.this.within.needs.projects.we.plan.application..of.also.noted.be..Along. of.and.. can.several.will.projects.components.activities. These.

value.also.asset.customer. is.value-adding.This..In. it.of.types.causes.of.for..work.create. days...discuss.to. At.. service.capacity..levels. financial.metrics.cash.of.. lower.improvement.expense.the.context.characteristics.information.Operational.metrics..This.across.root.project.business.high.maintain.methods.financial.event. increases.an. time.by. uptime.implementation. are.projects.team.Excel.reductions.service.investment. maintenance.this. aligned..it.a.process.warranty.extent.is.meet.example.that. operational.of.execution. way. project. which. a. The.As.against.metrics.types.efficiencies.project..to. cycle.poor.to.high.should..characterized.been. process.using..chapter.and.benefits.reduce.how.expense.of.its.term. should.operational.addition. frame. be..be..to.36  ◾  Lean Six Sigma for the Office of.required.project.to.will.content.Lean. equipment.methodology..the.. expectations.. charters.using.project’s. implies.possible..schedules.and.investment.been.will.basic.activities.a.and.the.external. using.process.require. level. short.a.the.major.addition..work.its.example.investigate.financial.solutions.implies.project. documented.in. very.waste. as.we. usually. a. charters.operations.operations.increases.levels.objectives..is.and.to.and.or.objective.and. a.benefits.important. required. yield.stakeholders.time.through. in.. which.to.In. possible.charter.Later.project’s.this.supply.called..utilization.by. may..project.more. many.systems..However.or.that.capital. be.phased. in.metrics...Typical.As. setup.the. evaluated.. simple.very..should.is. in.implies.then.book.linkage.that.words.content. their.show.operational.a.high-level.operational.their.Kaizen. also.high.projects.Kaizen.requirements.improvement.asset.the. all.template.testing.efficiently.in.to.In.In.charter.on.inventory.a.addition. Project.between.a.its. be.are.and.pilot.this.a.lead. process.to.second. lead-time. ithout.the. measured.of.. well.A.that.value-adding.(VA).having.assessment.. and.have.a. time.done. should.reductions.improvement.an.deployed.operational.expense.them.of.long.warranty.used.the.key.these.Using.flow.formal.caused..processes.times.study. that.to. formally.demand..other.associated.characterized.inventory.or..be. that.of. be.and.rework.from.and.project.resources.improve.high. model..an. other. reduction.revenue. a. operational.or. metrics..customer.well-written.well-defined..eliminate.they.The.of.analysis.that.days.Project..and..provide.having.by.are.financial. financial.benefits.may.is.a.is. job.a.a.metrics.chains. as.purchase. to.high. .their.its..tasks.problem.targets.be.correlated.resource.must.Integral.an. process.an.document. customer. improved.performance.also.a.describe.create.inventory.made. lean Supply Chain Lean.metrics. charters.root.has.work. Projects.conversions.. of.and.will.work.Lean.of.focus.may.objectives.and.should.project. w .eliminate.calculate..implies. in.formal.where.causes.associated. a.toolsets.if.projects.in. create.to. time.be.potential.. workflow.are.a. a.example..include. metrics. over.topic.. other.their.this. and. is.with. relates.operational. and. effectiveness..costs.equipment.are.utilization.. charter. include.organized.types.the.In.to.them.and.net.described.one. charters.will.their.In..percentages.. with.for.other.in.improvements.scrap.a..project.

efficiencies..invested. consist. capacity. operation.unit.time.12.reasons.will.A.proofing..of. to. operation. c ..is.investment.as.using. with. methods.position.time..12.for. an.as.sequentially. and. the.integrated.. maintain. necessary.of..“Lean.method. duration. operational.of.drumbeat.process.“pulled”.an.one.. As.total. non-value-adding.per.of. takt. the. rate.inventory.is.the.should. time.discuss.the.key.system.the.it.all.process.of. time.80.million.first.$100.is.service. base. c ..of.an.a.required.$1.utilization. include.can.down. demand.truly. a.standardization.chain.equipment.that.In.several.is.in. a. takt. can.turns. investment. or. operation.product. hapters.elements.It.competitive. time.of.the.final.an.a.As.calculated.chapters.within.be. with.flow.the. an.subsequent..to. system. process.of.customer.content. Improving.This. the.also.work. example. equipment. if.a. average.a.similar.by.example.time-based.evolution. from.$12.participants.cost.The. an.average.sequenced.system.increases. elements.is.of.customer.It.of. methods. by.tools.using.an.advanced. requires.a.is.of.$1.available.A..an.that.asset.a.call.as. a. be.time. map.and.be.of. the.are. costs.important.either.Chapter.center.to. several. to.process.A.by.efficiency.than.the.makes.takt.be. a.the.utilization.then. are. inventory.include.the.. stream.efficiency. single-unit.to. utilization.fewer.required.shown.to.system..by.cost.its..be.average. pull-based. quantified.the.in. statistics.organization’s.base.resources.. a.Some.Lean. used. investment. (VA).. system’s.through.work.capitalized. though.percentage. As. scheduling. In.sold.turns.resources. having. denominator. of. continuous.each. These.evolve.organization’s.as.to.manufacturing..In.improvements.because. pulled.Project Identification  ◾  37 do.would. within.by.several.in.a. organization.a.materials.and.calculated. external.production.the. visual.sense.competitors.will. system. the.in.of... process.will. control.have.supply.. using.asset. of. COGS.Inventory.and. materials. inventory.mistake. operations. COGS.over..the.an.as. to.called. and.service.very.well.others.is.and. process.that.asset.asset. As.external.200. associated.tasks.if. a.system’s.. people.center.be.one. Lean..effective.calculated.benchmark. to.(NVA).later. predetermined.more..of.goods. a. an.dividing.should.measure.second.. total. example.to.inventory.time.turns.In.its.and.total. one. cycle.as.time.as.teams..signal.build...more.book.year.workflow.system. time..utilization.capability. relative.is. asset.scenario.a. demand.asset.value-adding. important.the.and... concepts.. those.work.total.calculated.can. .produce. starting. necessary. this.”.demand. tools.eliminating.quantity.This.to.. quantities.by. value.In.shown.perspectives.utilization.. operational.these. alculate.the..more.thus.deployment. (VSM).. closest.measure.monthly.required.increase. another.The. the. called.is. are.production. context.in.. maintain. available. through.chain.3.productivity.a.a. to. operational.supply.example. in.ratio.Lean..well. of.then. one.budget. it.be.. value-adding.create.Lean.measure. systems.work.drive.and.on.leanness.deployment.efficiencies. production..to.measured.from. to.50.continuously. value-adding.operational.with..than.(COGS).information.or.and.from.its.divided.production. elements.other.organizational.monthly.its. A.calculate.deployment.asset.divided.across.. stability.and.budget. is. level. may.is.percent.million.ratio.higher.and.workflows. that..building.is.several..costs.deploy.has.this.Lean.We. process. operations.operational.an.of.capital. the.a.system. that.

internal. a.capacity.seasonality..also. used.. objectives.executing.These.share. Lean. which.the.objectives.should.be. be. very.Examples.proofing.variations..in.to. of.airline.key.context.conflicts.supply. Internal.(IT).systems.of.as.financial.mistake. functional.an.of.priorities. system.often.system.Service. or. to..caused.available.organization.financial.friction.at. unique..networks. goals.include.. In.superior.in.and.center.and. design.example.due.performance.planning.which.100. competency.in.within. benefits.consistent.competing. On.creates.The. standardized. directly.their.. lack.is. a.metrics.more.and.other.tasks.increase. products.across.This.. elements. entertainment. use.demand.the.superior.IT.simplification.second.Lean. on. stability.depending. this. and.and.result. anywhere. their. and. strategic.. of. components.market. a.flexibility. other. may..is. low. be.be.information.to.is. process. capacity.systems.objectives.whenever. divergent. procedures. performance.profit.processes.a. and. design.interfunctional.. to.operational.be.. the.variation.As.external.operational. or. is. and.example.. local.misalignment.work.of.requirements.percent.a.more-efficient.is.cannot.These. but.variations.on.poor.and. low. work.easily. work.that.that.an.designed.of.a.meet.operations.. level.high. be. can. common.wherever. In.dysfunctional.As.demand.contrast.be.friction. standardization.to.that. productivity.yields. demand.to.Parcel.and.conflicting. operational. enable.of. development.capacity. advantage.repeatable.within.back-office.Examples.it.operational.of. industries. to.procurement.form. Lean. institutions.will.industries.enable.platforms.due.its. Lean.may.in.in.emulated.reason.require. standardized.NVA. by. flexibility. customer. that.important.and. operational..variation.at.demand..operations..functions. customer.a.which. process.its.well.operational.goals.of.strategic. is.an.A.occur.changing.the. systems.In. does. satisfaction. work. Key.as.remaining. the. depending.to. constant. or.demand.work.obtained. over.because..its. the.operational. an.operational..of.But. a.eliminating.also.waiting.to...meeting. easily.influenced. competitors.and.by. operational.a. minimum.are.. of. an. by. will.low.system.margins.include. But.demand.organization. demand.have. calls. proportional. schedules. highly.more. organization. of.to.heavily.used.customerfacing..as.more. organizations.standardization. the. to..quickly.various.process.satisfy. and.seen. maintained.as.or. not. which. can.major.. critical. gain.and. In.systems.degree. cycle.operations. available..caused. simple.and.effectively.are. in.high. can..customer. competitors.. A..very.high.United. world.accommodate. processes.to... services.due.standardized.is.effective.others.An.enable.industry.dysfunctional. its. cost.equipment.are.systems. in.increase. workflows.very.their.by.plan.organizational.can.system.capacity. an.more. imply.a.platforms..is.VA. time.However.international. are.. to.to.service.an. higher. This. be.increase. at.and.effective.execute.by.systems.the. service.These.opposed.call.simpler.it.the.and.process.back-office.degree.may. demand.performance.of.industry.having.of. organization’s.is.system.technology.workflows.the.or.chains..may.on.often.in.low.higher. invest.customer. contrary.transferring.a.often.and.goals.is.characterized.create.its.or. its. to.levels.to. adapt.manage.by.ability.operations.will.in.noted. standardized.the. products..38  ◾  Lean Six Sigma for the Office The. to.. degree. to.also.external. a.interfaces. productive.the. system.be..characteristic.and. .system.exhibit.an. effective. services.its. may. with.operational.Lean.a. the.

identified.in..all.investment.services.an.In.attributes....demand.utilize.. Conducting a lean Assessment Conducting.capacity.complaints.sequence.or.favor. that.by..regardless.situations.a.other. interviews.calls. productivity.friction.of.service. they. o . “pull”.operations.to.systems.communication. aligned.organization. organization.“functional.pull.managed.systems.organizations.efficient..between.assessment. services.an.incentives. organization. rganization’s.and.customer..In..and..contracts. can. a. and.that. participants.to.return. minimum. efficient.and..benefits. will.initially.production. information..are..accounting. a.or.produce..meetings.more.. an. types..prioritization. these.of.In.examples.a.metrics.the.projects.to.for. be. a .major..customer. connected.should.occur. opportunities.process.services.available.activities.or.that.an.Six. based..provide.organization’s.products.of.finance..and. materials.to.on.key.Sigma..that.produce. meet.will.stabilized.specialized.words.example.used.operational.operations.improvement.strategic. alignment.or.stream.minimum..dysfunctional. Lean.sell.that.equipment.customer.functions.like. of. including.objectives.(ROI).tends.in.context..workflows. an..and.should. operational. To.systems.ensure.accomplished. and. In.an.are.to. identify. important.efficiently.available.. all..include. the.capacity.systems.be.most...workflows.assessment.vehicles.Sigma.operational. have.is.objectives. assessment.degrees.operational.is.areas.on.other.the.an.that. of. and.financial.the.produce.products.overall.as.demand.is.business. .marketing.Project Identification  ◾  39 by. these.deployed...tempted.least. In.people.profitability.goals.of.that.common.using. Six.Lean.sales.on. may.lower.includes.system’s.conflicting.will.reports.. varying.these.from.greatest.(VSM).A.activities. operational..major.services.supplier. as.called.product.service. their.contrast.other.context.deployment.of.using. ssessment.external.success.myriad.but. system.of.In.like.and.to.criteria.require.an.stakeholders. rocess.demand. Periodic.Some. would.and. systems..services.to.These. to.of. usage.possible.highly. problems.that.to.satisfy..operational.production. operations.Lean..noted.may.these.lower. system’s.goals.provide.variation. p . in.been.will.such.In.operational.and.is.would..services.process.common. assessments. operations.analysis. financial..the..for. sales. well...based.through.written.and. a. available.a. are. within. those.operations. This.to.and.silos”.organizations.using.capacity.contribute.e-mails.services. as.to. suppliers.synchronized.be..and. the. customers.elimination..of. investigation.Lean.and.this.mapping..procurement.sell.system. an.focused.and.specified.be.in.system..an.operational.meet.. entire. projects. production.customer.reasons.operational.has.In.of.a. is.customers.internal.products.and.sales.products. to.some. through.aligned.It. complex. that.higher.between. well-designed. to.or..aligned.amount.marketing.products.various.products.. is.financial.analysis.products.workflows.to.be.value.produce.with.daily.operations.This.by.capacity.In.of.a.production. prioritized.materials.at.scheduling..levels.versus.conference. structured.of.Assessment.. Also.this. and.as.be.these. and. the.incentives.. because..with.efficiently.as.sales. avoid.

in.includes.to. preliminary.their. these...metrics. ineffectual..the. exacerbated.charters. are.immediately.conducted..operational.across.operational. in..or. methodology. this.facility.Integral. to. verified.a. isolated.project. quantified.success.operational. charters. project. VSM.is.financial.information.a.of.assessment.change.work.directly.it.operational..operational. and.types. initiative..However.deployed. After.the.to..levels.the.a.of.operational.VSM.a. the. initiative.the.its. resources. workflows.mapped. statement.project. and.all.teams.important..situations.40  ◾  Lean Six Sigma for the Office goals.local.the.local. stakeholders. long. has.if. poor. management’s.been..single.foundation.an.financial.to. is.will. that.VSM. teams. and.defined.owner.Kaizen.project.of.This.or. rigorous.organization. deployment’s.directly.perspective.are.. project.issue.management. charters...assessment.an..leave.at..of.these.of. and.basis.A.An.the. responsibilities.In.of.of.. performance. tactical.Finally. improvement.an. include.teams.events.operations..deployment. project.the. In.team. structures.process”.the.deployment. opportunities.charter. through.which. an.implies. by.top-down. an.team.assessment.electronic.. having. result.. charters.reports.an.of.. deployment. quantification.tied. a .problems.process.deployed.project.lengthen..performance.not.also.When.are. . manner. a.is. commitment.project. selection.execute.. a. it.assist..actually.obtain.case.test.resources.. analyzed.for.projects.should.successful.well. developing.to.let.is.low..an.and.quantify.operational. eventually.financial. develop.high.of. important. and.operational. In. to. leader.financial. also.gaps. process.and. any.is.. process.to. problem. good.created.from. has.lower.potential.also.are.organization.team.gaps.assessments.yields.assessment. a.. enabling.able.VSM.and.assessment.project.assessment.identify.operation.levels.senior. organizational.an. lignment.required.are.. times.and.to.have.to. strategic. project.thoroughly.linkages.or. VSM. is.operations.interviews.will.by. to.teams. benefits.financial.by.Do. improvements. assessment.enables.be.to.operation.your.major.major. capture.by. been.activities.accuracy.a. without.to.identify. charters.In.process.necessary.is.completing.within. a. results.information.can. project.process. using. w .is.These..cost. complete.poor.is.be.deployment.project’s.several. to.productivity. opportunities.analysis. in. anecdotal.local.on.objectives. creation.your.from. create.. a.should.. committee.at.the. charters.charters. a. cycle.verified.of.these.project.team.was. identify. opportunities..their. fully. a. objectives. which.improve.an.team.both.the.metric.a. having.analysis. have. key.and.This.higher. which. clearly.and. charters. through.work.that.help..that.to. quantified.. a.that. with. developed.is.satisfaction.stack.create. These..without. organizational.Assessments.But. to. in.increase.business. create.used. additional. are. financial. executive.an. improvement. conflicts. identify.infrastructure.organization. The.the. local.actionable. should..not. and.a..create. important. created. by.not. project. integrated.deployment. identify.also.cannot. additional.to.operational.In. and. workflows.situation.failure.a.organizational. subjective.failure. and. an.and.addition. create.an. tied. own.not.and.deployment.organization.members.to.schedule. In. ensure.be.addition.This. to. fact. steering.assessment.A.“walking.gain.A. roles. to.projects.with. a..by. project.effectively.and.The. ritten. in. may.. operational. defined. an.are. project. may.and.necessary.methods. their.develop. create. been.or. other. or.A.project. it.. to.

help. how.deployment.project.champion.projects.projects.is.organization.method.designed..used. assessment.the.chapter.of.XYZ. deployment’s.Project Identification  ◾  41 p .executive.Lean.or.shows.executive.and.discussion.is.types.represents.their. Finally..the.are. a. and.this.projects.represent.from.critical-to-quality.percent.overtime..a. as.be. important.within.this.properly.Sigma.is.the.and.workshops. include. of.workshop..these.demonstration.$300.work.Using. also..to.leadership.a.of.into.of.as.of. Project. the.works. A.is.the.percent.This.of.1.and.method.Table. lower.should..expense.$1. be...project.levels. of.and.analysis.that.an..Lean.into.work.percent).operating.would. required.area.each.and. .down.67.and.integrated.A.it.example.identification.is. 20.is.the.broken.represent. expense.workshops.the.a. at. schedule.deployment.to.000.. A.000. how.champion.to.roles.broken.the..the.using.typical. down.objectives. and.lower. expense.use.more.a.in.also.be.flow-down.As. to.makers.their.one. be. next.called.enables.teams. or.and. responsibilities. scope.show. Workshops.flow.Sigma.operating..this. an.1.A.identify...using.with. improvement.in.is. work.that.and.Figure.The.of.shown.uptime. tool.machine.area.that.Case.an.workflows.success.reduce. and.discussed.are.projects...a.These.by.Six.of..characteristics.customized..are.the.of.expense.area. are.Six..million.work. also..Lean..business.this. overtime.organization.can. resources.responsibilities.facility.identified.roles.overtime.of.identified.shown. training. discussions.focused.operating.organization.decision. projects.successively.of.seen.to. an.(100.analysis.hands-on. XYZ.or. b . organization.to. key.the.resources.at.deployment.its. to.team.are.this.an. expense.These...for.or. assessments.and. organization’s. Drilling. area.throughout.In. goals.management.a.and.well. shows.contrast.executive.studies.In.. that.total.that.work.be.of. project.a.organization.In. can..expense. respectively.project.can.and.a.levels.tools. riorities..shown.is.be.expenses.using. the.lower..total.that.is.we. a.of.to.analysis.an.the. training.down..it.of.executive.An.A.In.Sigma.setup. champions.percent. area. of. expenses.deployment.first..to..of. within. level.associated.Lean.changes.1.called.model.within.At. shows. high-level. and.Six.identify.the.to.the.method. champion.level. Six. Breaking down high-leel goals and objecties Figure.middle.percent.to.lower. identify.operating.stakeholders.goals. are.actionable. champion.major.with.is.show.execution.the. key.level.approximately.facility.to.the.to. as.opportunities. leadership.facility. fully.$500. their.10.to.as.deployment.improvement.major. description. the. used.total. provide.operating. work.team.shown. team.is.total. facility.organizations.possible. and.opportunity.due.types.training.expected.output. aligned.this.50.CTQ.1.At. deployed.and.strategic. organizational..30.training.of. expenses.$1.aligned.operational.facility. Continuing.work.2..required.project.of. well.operating.facility. method. on.represent.to.down.down.facility.dollars.this.and. roken. tools. area.benefits.the. of.as.Once.down.A..levels..In.how. total.expense.how.the.responsibilities.some. project.was.guide. their.Sigma.An.actionable. percent.(CTQ). objectives. of.the.through...higher-level..expense.deployment..will.dollar.3.methods.million.and.2.

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

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

and management. also. that. per. of. The motions required to execute a work task such as completing an accounts payable form.motions. a. bottleneck. tracking.in.1 Analytical leels of process Analysis Analytical Level I.an.that. Operation A discrete set of operations designed to provide a product or service. Procurement.related.the. measure.example.. Lean.An.operations.compare.in.related. to.process. of.. measure.not. .at.activities. to.. Examples Sales & Marketing..used.the.work. non-value-adding.2.2.example.applicants. output.eanness..a.. An accounts payable clerk completing one of several forms.shown. rate. a. work. the.value. The most basic motion associated with a work task including manual and equipment operations used in combination to execute a single work task.Finally.of..the. it..similar.tools. various.used.payable. a. quantification.44  ◾  Lean Six Sigma for the Office table 2.necessary.complete..an.equipment. a.including.add. Design Engineering. operations. requisitions. be...are. be.2.available. is..to.job. important. will. Work Element up.example.motions. a. would.a. level.respect.deployments. across. Process Workflow III.broken.a. operational. then. of.to. is. work.the. system’s. metrics.would.of.and. rate.be. time. of.Lean.. System Definition Several process workflows making up an organization or a larger supply chain. a. Logistics. key. by. eliminating. analyze. an.execute. system’s.be.operations. a. system.an. Work Task V. A.metric.value-adding.task.of.for.Work.Figure. if. a.second.2. behind.completion. operational.the.breakdown.elements.into. used.percentage.several. and Customers. to.task. as.combination.. throughput...single.work. However.The. system.Figure.job.and.analytical.As. the. at. The.As.are.mapping.. lean. II.with.to.shows. rate. with. production.Lean.can. the. Finance.work. fully. activities. Accounting workflow provides invoicing. system’s. production.smallest.the. work. In.. Supplier.do. goal.. to. operational.to.an.interview. unit. critical.most.. metrics.motions.performance. A combination of work elements used to execute a single work task.to.a.in. is. A. larger. production.form. resource.of. relative. A set of work tasks within a process workflow that is used to execute a well defined function. rate.accounts.necessary.higher-level.to. deployment.task.single.applicant.basic. to. measured.associated.elements. balanced. become. time. l .levels. system’s.important.manual. IV. Production.types. A single accounts payable clerk checking a few major customers.measures..with.concept. is. addition. all.These. controls.

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

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

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

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

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

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

of. important. also.to.performance.that.with.objectives.. most. e average A/R balance is $15 million between 31 and 60 days.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.projects.and.gaps.strategic. To reduce the accounts receivable cycle time by 50% in the 31– 60 (15 days) to save $61.strategic. to.can.000 $ 5.6 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. projects.expenditure.have. over. productivity. improvements.identified.3 project charter example.goals.projects.the.There.an.close.organization’s.deployment.000 $ 56. prioritizing projects Prioritization.are.identifying.643 $ 5.resource.643 Comments Team Information Team Leader: Team Members: Name Role Expertise % Time Figure 2.of. of.643 $ 56. ensure.through. e result is lost interest expense from money that should be collected no later than 30 days from invoicing. is.several. ..strategies.gaps.used.that.include.. that. $10 million between 61 and 90 days and $5 Million over 90 days.obtained.are.prior.be.to.These.above.in.analysis.and.are.common.4.performance.their.shown.prioritize.Figure.6 K ($15 MM) *(15 Days/365 Days)*10% = $61.minimum.already.to..643 $ 61.Some.an.2.been. 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).

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

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

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

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

and...N. and controlling..Auerbach.and.9th.Wiley.York:.Wiley..Ginger..IIL.New.Rad. York:.Engineering...Martin.Levin.56  ◾  Lean Six Sigma for the Office Suggested reading J.Series..Crawford...Merino.and.2nd.and. 2007.P.Center.Technology.Project management maturity model.Project portfolio management tools and techniques.. Practices.York:.F.W.Operational excellence—Using Lean Six Sigma to translate customer value through global supply chains.Series.York:..New... W..Business.. New.New...New.Kerzner.J..8... Hans.Management. . McGraw-Hill.ed.. James. scheduling. Martin.York:.Wiley.Engineering.2006..Wiley.Publishing.for.Vol..2005.York:. New.Kent.. Parviz.1993.in.New.Donald..Management. Series.Martino.ed. Harold.Lang..The selection process for capital projects.Auerbach.1995...2007..Technology.Research and development project selection..Wiley.in..Project management: A systems approach to planning. Lean Six Sigma for supply chain management.2008.York:.... James. Joseph.

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

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

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

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

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

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

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

make.other.be.in.or. not.be.fail.the.to.situations..of.organization.given.concept.to.3.an.to. are. products.product.and.to.Table. service.and. will...by. to.be.added.features.improvements. c .key. to.of.can.offerings.impact. would. in.these.organization’s. noncore. configured.may. organizations.service. value.manual.In.remain. first.Sigma. and..should.from.workflows.been.profitability.process..profitability.or. Kano.do. a.level.assembly.portfolio.should. .combined.situations. meet.removal.features.strategies.at.organizations.tasks. negative. the..negative.second..will.value.services. was.to.service.to.of.at.and. and.service.use. may.profitable.As.be. or. organization’s.situations..parts.. the. negative. “Lean”.The.for.This.low.... an.applied.for.the. an.or.tools.perspective.minimum.design.an.to.be. complexity.reduced.process.can.complexity.concept. it.as.to.prioritize. process. workflow..In.time.operations..profitability.well.resulted.of.be.product.that. is.eliminated.production.service.another.that. system’s..common.and.they.add.will. complexity.use. that.to.create.and.key.any. facilities.or.product.unique.and.this. rate.operational.be.methods.will.example.or.have.by. no.to.. time.be..a.simplification.example.features.design.design.ways.them.goal.quality.teams.customers.is. cost.if.or. going.in.sales..and.only.problems. without.at.produce.product..In.service.have. that.can.of.processes. presented. these. improve. ontributors. verifying.64  ◾  Lean Six Sigma for the Office Create robust product and process designs to reduce Complexity It.to. may.and.summary. an.services..not.be.is.or.of.eliminate.needs.how.In.nonprofitable. A.good. customer. process.context.generally.them. profitability. be.the.could.In. that.that. because.aid. are. higher. an.even.incremental. sense.a.and.product. its.justify.inefficiencies.not. organizational.from...Also.and. eliminated.that.outsourcing. organization.that.many.or.2.3.that.sufficient. future..services.are.service.level.Misunderstandings.a.product.value. sense.understand.designs.organization.work.An.not.use.produces. As.elimination. margin.products.that. it. out.is.that. its.manufacturing.time.over.products.wrong.may.be.of.part.an.assembly..Lean..major.reduce.a. solution.their..of. It.and. are. margins. example.in.an.increase. surprising. services.may.easy.be.addition. they. how.that.a.requires.to..demand.higher.designs. products. they.Six.customers.As. a. improve. an. or.of.whose.and.those..these.implication. A.a.self-service.. is. and.physical.produce.and.often.cost.also.workflow. workflows.these. customer.part. is. very.is..customer’s.shown.an..Elimination.example. may.components.way. or.accepted.a.this.service.work.products.having.2.core. if.local.their. make.various. Table.design. reduce.deployment..occurred.. impacts.an.a.addition.organization.its. it. be.number. improve.other.levels.. many.by.after.a.from. Also.process. and.reasons. itself. services. cycle.may.product.services.that.decades.been..cost. very..of.adapting..at. to. important. or.the. organization.prior.if.service.lower.in.situation..or.or.a.also.caused. a. profit.its.lower.product. if.may.This. at. Service. gross.encourage.and.to.in.simplified.services.by. and. increase. having.lists. simpler. low.an.of.continued.recommends.concepts.time.products.seven.outsourced.have.to.in. quality.not.to.organization.tasks. an.product.organization.key.A.marketing.nonessential.book. to.as.

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

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

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

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

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

Warranty Expense/Incidents F. Material Availability 12.Six.and.together.created.4.metrics.financial.their. Percentage Scheduled Jobs Missed Additional Metrics (Depending on Industry or Function) 1. Number of Problem Solving Teams C.is.our.. brought.have. Unplanned Orders 8.products.discussions.in.to. graphical.it.include.as.define.be.sequence. Returned Goods Expense/Incidents G.metrics.operation .revenue. Value Adding % 2.as.Allocated.Figure.bring.4.of...quantified.The. . a.operational.4 4. a.important.is. Overdue Backlogs 10. 9.actually.out.over.related.applicable.the.well.at.level.we.75 50 ####### 420 Date: July Auditor: Joe Takt Time: 8. 8..Inventory..4 Minutes/Unit (50 units in 420 Minutes) Operation "Accounts Payable" Improvement % Baseline Week 14 Week 15 Week 10 Week 11 Week 12 Week 16 Week 13 Week 1 Key Metrics 1.also. together..a.day.share.an.process.metrics.a.how..discussed.but.The.these.and.to.that.production.these..will. Floor Area Additional Metrics (Depending on Industry or Function) A.operation.those.and.investment..well.VSM.create.and..similar.operation. Downtime % 6. Create value Stream maps (vSms) A. First Pass Yield (Rolled Throughput Yield-RTY) 2.activities..relevant.4.track.their.and.shown.representation.In.space.they.deployment.correct. Number Employee Suggestions E. Create performance measurements.team.of.required.measurements.other.is.time.repurchase.on. Total Process Workflow Cycle Time B.70  ◾  Lean Six Sigma for the Office Operational Performance Measurements Work Area: Accounting Operation: Accounts Payable Process Owner: Mary Operation Number: 4TD Average Job Cost: Units Per Shift: Shift Cost: Available Time (Minutes): $22.for.Chapter.process.describe.as.expenses..measure.their. VSM. Lead Time 7.they.performance.using.in. as. nine.multitude.of....gaps. Week 4 Week 5 Week 7 Week 2 Week 3 Week 6 Week 9 Week 8 Average . Excess & Inventory Figure 3.market.the.VSM. Annualized Savings H.intent.VSM.as..Figure.creates. close.metrics. Forecast Accuracy 6. that.operational.service.. Number of Customer Complaints D. Scrap% 4. workflow. requires.mentioned..through.will. cash. to.flow.at.any.metrics. identify.to.of.people.After.the.in.focus..floor.team.important.4.to.initiative..services Organizations.least.nine. Inventory (Units in Queue) 9.of.3.and.day. Setup Time (Minutes) 8. shown.and. be. Inventory Efficiency (Turns) 4. create.Lean.such.an.projects.a.are.related.3.a.manufacturing. people.Six. On-Time Supplier Delivery 5. Schedule Changes 9. Profit/Loss 3.we. Data Accuracy 11.process.. Capacity (Units/Shift) 7.a.that.by.improve.in.Sigma.as.Sigma.performance.operations.a.to.customer.Step.a.It. Production Rate (Units/Shift) 3.in.both.analyze.are. Rework % 5.of.above.is.necessary.operates.in.industries.high. understanding.Lean. Creating. initial.reason.metrics.and. to.

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

performance.maps.a.process.also..context.breakdowns.projects.a.the.process.and.In.a.creating.one.as.breakdowns..reports.frequency.be.These.and.VSM..system’s.visual. As.using.3.unit.information.process.forms.various.improvement.6.to.process.6.are.advantage.operational.forms.produce.of. also.analyze.represents.related.to.Figures.show.material..that.data.metrics.of...to. 2 NVA Generic Process Workflow–Ideal State A 60.In.the..forms.or. 3 VA Operation A B C D2 E F G Total: Expected 60 30 24 16 24 48 6 208 Standard Deviation 5 10 6 4 12 24 2 Variance 25 100 36 16 144 576 4 901 266. 5 VA B 30.that.and.. 24 BVA Process Output Boundary G6.VSM.describing.quantified.other.a.record.shown.of.is.shown.These.process..and.of.of.VSM.average.reports.5.representation..to.VSM.cycle..6 takt time calculation.entry..with.that.the...shown.on.starburst. 4 NVA E 24. 10 VA D1 8.part.the.time.Sigma. similar.workflow. information.estimated.the.several.operational.a.entry. 6 NVA D2 16.72  ◾  Lean Six Sigma for the Office Process Input Boundary Generic Process Workflow–Current State D1 8.83 A B Operation Expected 60 30 8 98 Standard Deviation 5 10 3 Variance 25 100 9 134 120. 5 VA B 30.current.is.this.the.It.takt.workflow.the.seen.clearly.3.be.used.highlighted.in.3.also.of.occurrence. .in.starbursts. information..is.including.Figure...financial.time. their.and.total.to.contributing.the.. reports.information. 3 VA A 60.manner. 12 BVA F 48..in.time. 10 VA C 24.3.Figure.can.starbursts. report.quantification.its. in.and.they.3.in.should.the.69 –53% D1 Total: 95% CI of Cycle Time: Average % Improvement: 95% CI of Cycle Time: Figure 3.factors.An..VSM..as.Six.potential.are.addition.well.data.information. as.Figure. process.a.summarizes.8. Lean. shown.5.complexity.process.

the.demand. hours.0 100. the.reduced.one.. time.as..the..people..is.work.0 800.means.next.work. for.0 4.shift.Lean Six Sigma Basics  ◾  73 All analyses are in seconds: Initial Process Operation A B C D2 E F G Total Demand per shift: Allowed time (breaks): Available time: Takt time = (seconds per unit) Expected Time 60 30 24 16 24 48 6 208. is.or.the. over.and.rounded.only.is.resting.then.work.shift.Dividing.within. which. cycle.map. process.no. the.calculated.produce.system. percent.5.to.step.again.system’s.one.The.seconds.stations.takt.the.31.every.each.cycle.time. Figure.assumption.and.The.were.3.6. take.produce.unit.production.is..unit.0 25.produce.25.0 31.eight.and.31.would.0 3.0 31..and. calculated.words.can.one.to.than. This.that.operations. summing.units.However. is.lost. also.6.of.is. 208. as.7 208.produce.that.other.per.for.0.the.7.98.assemble.to.units.0 36.total.one. is.0 576.5 Standard Deviation 5 10 6 4 12 24 2 Variance 25.in.by.that. cycle.0 eoretical minimum operations or stations: Time to produce one unit: Takt time Number of people: Figure 3. This.shift..0 144.more.leave.6 takt time calculation—original process.the.due.time.allocate.be.. current.to.to.time. times.to.200..takt.must.workflow.shift.is.5 6. by.time.required.seconds.600.seconds.breaks.In.per.0 901.. 53.or.unit.800.current. average.to. the.. reduction.only.unit. each..shows.average.number.0 16. all.seconds.hour.if.there.to. seconds.time.unit.process.. is.The.Referring. per.5.work.time.208.200.work. shows..VA.seconds..remained.800.to.lunch. .calculated.7.this. a.31. in.required.this.the.available.seconds.operational.was..analysis.total.should.to.process.tasks.work.5.. the. operations.be.

but.0 31. to.BVA.and.work.VSM.a.necessary. .result..takt.Six.per.be.process.the.1 takt time calculation—future state.operations.the.analyzed.Lean.be.NVA.reduced.way.a.that.0 9..time.the..0 eoretical minimum operations or stations: Time to produce one unit: Takt time Number of people: Figure 3.remains.would.takt.below.the.work.time.between. time.stations.it.to.those.time.tasks. on.98.been.NVA.stations. simplify.5 3. to.workflow.has. process.components.unit.tasks.because.system’s.0 100. the.seconds. concentrate.production.a.not.the.0 25.be. immediately.a.74  ◾  Lean Six Sigma for the Office All analyses are in seconds: Final Process Operation A B D1 Expected Time 60 30 8 Standard Deviation 5 10 3 Variance 25.non-value-adding.of.200.. VA.at.that..any.noted.can.unit.remain.to.work. the.cycle.the.per.seconds.total.0 800.process. improving.the.This.that.team.in.improvements. workflow.enable.been.then.3.should. its.would.could. value-adding.of.would.1.0 Total Demand per shift: Allowed time (breaks): Available time: Takt time = (seconds per unit) 98.reduced. the. 31.will.work.0 3.of.would.produce.as.However.5 134..unit.differentiate.It.work.600.to.the.resources.created.. have.to.and.eliminated.be.operations.required.Sigma.such. eliminate unnecessary operations Once.operations.reduced. at.0 0..0 31.be..8 98.5.a.operational.are.to. number.if.station.required..Recall.

similar..nefficient.discussed.longer-term. may.summary.contain.characterize. recall.way.how.short-term...work. be. activities.basis..regulatory. that.and. customer. a. immediately.constraints..also.but.eliminated. basis.shows.the.to. adversely.work.Another. stations.or. F . operations. strategy.9 6. and.required.value-adding.of. non-value-adding.Figure. perations.operational. external. or.tasks.9.viewpoint. . an.customers.are.any.. team.as.to.process.operations.a.adverse.are.performed.3.NVA.by. eliminate.workflow.to. the.without. should.workflow.relative.work.within. impacts. operations. inspection.remain.or. operations..operations.to.no.identify. remaining. i . include.adds.from.through. eliminate unnecessary operations within workflows.methods.cost..a.. they.. quality.value..can. be.consider.extends. igure.unnecessary.Many.task.inherent.1.In.a. quickly.them. o .good.those. improvements. rework.Typical.technological.processes.. can.immediate.VA..unnecessary.a.. agreement.operations.at.eliminated.within.external.. by.VA.to.Lean Six Sigma Basics  ◾  75 Waiting Time + Setup Time (Load) + Total Cycle Time Processing Time + Unload Time + Inspection Time + Movement to Next Operation Figure 3.operation.to. or.within.components.time. optimize.process.on. product..customer.technological.another. operations.required.operational.However. NVA..tasks.cycle.activities.time.consequences. Also.that. by. service.such.is.work..unnecessary. and....3.be.be.to.improvement.contained.least.. to.be.On.and.and. to. required..due..operations..BVA. have. BVA.BVA.

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

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

Using. systems. shown.working 16.results.. with. for.Maintenance 10. in.waste 14..can.measurement. and.financial.As.efficiency.empowerment.. done.metrics.keys.elimination.processes.. ..chapters. . physical.extensive.then. . “Lean”.against.baseline.an.sequential.Kobayashi. implemented.just.discuss.reduction 6.initial.manner. expectations.the.tidy 2.continuous.these.developed. continuous-improvement. book. process.metrics.process.Worker.performance..using.continuous. repeatedly..deployment.Management. .examples.fallen..following.Conserving.and.manufacturing 9. be. the.diverse. to. performance.the..in.offices.their.improvement.to. impact. a.Efficiency 18.Some. degrees.in.a.to.. been. varying..Participative.improvement 4.organization.system.found...not.Clean.of. work.but.to.takes.that.of. success.often.have.efficient.most. a.. .short.Teamwork.the. has.across.the.Constant.energy.effort.measurements.the.Supplier.organizations.against.identification.will.of. because.time. .metrics: .most. and. .have.the.on.in. .improvement. . result.synchronized. real. configuration.organizational.measure..will..include.a.and.Technology 19.collection.rhythmic..very.a.an. have. .example. of. .. .enable. .industries.common.successful.and.working 11. been. is. It.subsequent..partnerships 13.on. hard.materials 20.and.In. a..methods We. 1.leading. a. o . .data.establish.78  ◾  Lean Six Sigma for the Office As.and..discuss.some. rganizations. of. .phased.targets. building.templates.over.operational.and.this.example.an. that.and.workflows. that.. . understand. must.using. is.of. Reorganize Physical Configurations It.its.Zero. of.use.approach. patience..in.of.and.key..a. organization.monitor. Lean.process.monitoring 8.the.performance..Continuous.Reduced..Cross-functional.style 3..design.. .workplace 7.years.and.of.more.analysis.Disciplined.As.inventory.training 15.These.time 5.I.these.20.baselines.process.. .do. approach..a.of.Lean..Cellular.common..metrics..improvements. difficult.lead.Scheduling 17.However.and.performance.Changeover.have.management..an.workflow. . 20.defects 12. the. .

e .modified.. station. more.. reorganize physical configurations. straight.depending.variations. demand..on.designs.These.work.cross-trained.shapes. work. cells.context. cell’s. straight-line. been.office.work. takt.a.. information. U-shaped.of.include. L.available. way.different. Also. most. as.and.This. a. time. enable. a. if. However.workers. employees.cube. U-shaped.facilitates. and. to.configurations.software.. such. work. in. than.is.shapes.straight.between.configurations. workflow.more..environment. environment.decreases. as.can. situations. on. . more.work. Figure. found.. the.There..council. the.. materials. manufacturing. equipment. efficient. that.U. of.U-shaped. and.11.physical.. work.3.easily...physical. quipment. has.common.several. people. configuration.because..shapes.11 7.Visio®. one. demand.designs.. often. cells.an.In. be. also. work. physical. to.cell. line.L.shapes.may. discrete..of. on.are. than. efficient.cell.balancing. by.within.move.Lean Six Sigma Basics  ◾  79 Straight Line “L” Shape “Council” Shape “Cube” Shape “Modified L” Shape “U” Shape Figure 3.be.these. local. shows...and. many..example. will. parts.a. are.the. the..lines.this. it.. changes. work.shapes.of..

and.current.because. the.As.off.items.3.just. located.a.in.into.that.clean.is. important. shining.are. every.location.workspace.a.tools. contains. for.when.the.be.work..The.for.areas.chapters.this.for.Table.its. area.the.makes.which.of.will.their.one.is.will.be.help.staging.that..and.that.applied.to.work.review. stands.hand. information..work.be.This. location.use. s ..needed. not.ease.of.is.decrease.book. and.based.work.a. one. sustaining.information.a. accessed. files.may.equipment. is. and.higher. needed.order.that.after.from. information. in. are.a. a.are.their.organized..discuss.marked.your. home.a.to..work.people.to.and.removed.be.hand.storage.easily. process.and.the. a. standardizing.are.production.are.reconfigured. work.sorting. events.or..materials.to.a..materials.concentrate.nonessential. their.will..time. Kaizen.proper.are.a.higher.than. sharepoint..verify.in.to.process.so. the..facilitates.area.has.rather. after.abnormal.either.that.defined.Another.part.fact.in.to.is. Shining.office.by.to.physically.also.only.workflows. of.tool.requires.sharepoint.can.be.it.find.new.. acronym.required.Operational.job. the.work.some. a.and. is.equipment. an.items.retrieval.material.increased. to.requires.of.and. in.a. creating.actually.a.should.and. location.. agging.area. inventory.materials. standardized..placed.useful.red-tagged.nonessential.equipment.In.process.In. or.work.tasks.and.in.within.easier.and. to.words.to.and.a.has. t .orderly. sorting.. 5S.eliminate..and.the.are.time.exercise.short.who.have.is. A.work. lot.of.and. should. work. tool. tasks.distracted.5S. your. example.in.to.the.an.work.on.in. etting.the. desk.area.been.their. when.work.will. for. 5S and Standardized Work Once.also.person.work. in.identify.method.of..80  ◾  Lean Six Sigma for the Office We. extraneous. sharepoints.the. retrieval.few.located.materials.. how.for. employees.or.its.information.storage. used.clean.. to.methods.operations.the.5S. can.easy.tasks.process.places..sorting.or..area.can.. last.of.them. it.remain. find.efficiency.nonessential.This.red.a. order.These.do. Setting. to.and.applied. rules.the.be.from.5S.and.locate. imagine. folders.information.at.other.within.production.makes. information.work.the.to..labeled.In.same.be.directly.lower.the.example.The.a..the.process.cycle.when.required.example.Red. R .period.for.be.for...clean. .requires..it.been.operations.that.been.tagged.again. work.to.process. improvements..always. cleaning.all.3..sorting.extraneous.reconfiguration.. information.materials.period.work...that.A.all. and.information.be. work.optimally.on.be. assigned. relative. cannot. enables. and.find.from.area.a.of. materials.are.in.within.efficiency.at.to.. using. work.cycle.easier.designed.materials.work. electronic.In.materials.The.area.there. that.workers.information.through.storage.analogous.is. Disorganized. numerous.. is.that.Setting.after.work.5S.control.become. predefined..seen..order.orderly. that.sharepoint’s.always.do.materials.materials. waste.and. up.flow.to. that.the.in.well.applications.a.This.and.maintained. area. do.in.production.most.equipment.areas.work. placed. fact. time. later.cleaning.area.area.conditions.enables.materials. eferring.quality.of.locate.them.review.proportion.red-tagging.needed..there.necessary.everything.to.also.be.all.is.have.and.the.materials.find.removed.

availability.items. maintenance. equipment.As.A. miscellaneous. 5.under.examples.and.no.encourage. an. oil.longer.some.example..example.without.that.to. maintenance..b. to. imilar. office. identify.complete. In. environment.work. Ensure products are designed using standardized components and manufacturing processes. and information within easy access of the worker.cause. place all tools. 4. is. Sustain Use control plans and deploy continuous improvement teams.necessary.a.mats. which. then separate operations that can be standardized (back office) and ensure the customized operations are tightly controlled.once-per-month... and that the work is performed the same way every time. visual.work.in.equipment.distractions.office.activity. Shine Ensure all tools.issues...so. equipment. Use control plans and deploy continuous improvement teams.an.other.are.is.Lean Six Sigma Basics  ◾  81 table 3. and the work area are clean.white.keeping. .obsolete. higher.may. This.work. facilitates.cleanup.organized.materials. Abnormal conditions such as oil leaks and rework are easier to see under these circumstances.such. mistakes. if. contributes.placing. This minimizes the time it Example: Dump old files. If the work is complicated. Ensure there is one location to place those items remaining in the work area. 2.any.as.organizations. leaking..to.include. completed. Ensure computer files are properly documented for easy access.and. 5S and Standardized Work 5S Category 1.time.classic.well. to. needed to do the work.to. equipment.can.current. s . check. 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..floor.and.an.discard. used.is.employees.be.Distractions. procedures. Maintain work areas that are clean so abnormal conditions can be easily seen. equipment. Standardize Ensure work tasks are performed in a standardized manner using checklists. and instructions.waste.tasks. Set in order 3.clean.3 7.reports. takes to look for things.

an.and.one.an.takt.used.contributes.best.The..obvious. which. materials.consulting. these.a..process.how.improvements.and.process.contrast. other.the.make.people.time.organizational.are.the...process.Another..information.its.inventory.inhibit.tables.audits.the.task.tools.careful.is.Consistency. throughout.time. improvements. commitment.is.the.same.system.down. summary.the.S. part.instructions. studies.that.variation.a.quality.difficult. idle. Sustaining.However.motions..a.an.an.doing.also.task.should. the.becomes.using. using.But.into.using.the.the.other. of.either. and.has.do.done.activities.cycle.was.. process. ergonomic.performance.As. line.its.a.only.the. .standardized.its.or.this. operations.longer.with.distance.and.between.Six.packaging.be. book.front..complete.who.a. Link Operations It. management..materials.this.work.a.in.bring.under.who.work. work.has.detailed.optimizing.must.cycle.. work.work.either.process.tasks.. sustain. are.will.should..all.found. work.or. It.it..to.tasks.manager.determine.are..to....then..virtually.made. camera.interesting.be.to.done..motions.cost.chapter.must.physical.operations.used. integral.of.mentioned. sustaining. the.decrease.the.industrial..conditions.task.to. busy.reduces...Each.operational.world.to. fifth.work.lines.are.5S.includes.facilitated.of.result.because. process..workflow.or.repeatedly.Sigma.uses.levels.will.tasks.deployment.well-defined.a. can. discussion.Time.to.work. and.the.... this.another.on.will.to.do.available.after.operations. methods.for. and. another. S.work.materials..to.objectives. and.travel.their.are. operational.example.discussion.earlier.task...This.way.the.often.made.packaging.across.up. The. self-discipline.unless.together..increase.and.been. were.of.motion.been. work.a.various. analytical.ways.and. Metrics.with.studies.efficiency. packaging. that. important.. more.operations.be.standardized.impact..to.the. requires.work.across.elemental. to. motion.may.then.several.tasks.that..accessible.time. a.forms. on.should.and.configuration.the. However.the.to.capacity.how.if.or.In.various.best.production.process.the.be.on.be.that.in..the. typical.time.are..analysis.have. or.a.employee.was.shorter.operational.high-performance.implies.shown. maintaining. metrics.improvements.As.time.time.how. each.differently.to.be.work.for.analysts.Lean.This.production.record.an.configurations. an.physically.improvements.worked. In.line. An. improvements. flow.. to.when.physical.82  ◾  Lean Six Sigma for the Office Standardization.and. necessary.example.method.lines.way.motion.study..products..in.I. m . standard.the.One.lower.process.the.resources.reason.As.be.cycle.the.fourth.. ethods.determine.optimally. materials.or.from..a. problem-solving. available.There.help.easily.of.the.work..work.result.down.worked.stable.by.packaged. depending.every.goals. aligned. that.then..into.As.people.is.several.It.In. tools. breaking.job. sustaining.time..is.to.elemental.different.and.was.micro.ago. the. several.production.and.financial.and. is.engineers..measuring.done.. also.years.linked.people.example.within.Standardization.is.operational. either.has. are.done.determine. methods.enhance.important.. information.one. teams.been.tasks.studies. work.ways.motion.break.

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

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

will.the.13.operation.the.non-value-adding. to.a.sequence. having.in. cycle. must.is.constrain.but.controls.cycle.is.in.system.it.the...it.flow.work.flow.It.the. sequence.may.This. (NVA). through.is.capacity.the.. other.discussion.called.the.of. Balance material flow.critical.system’s.concept. system. station.operations.stations. will. compared.. and.a.office..system.and.at.capacity.work.be.times.operational.Figure.Figure. .that..This.information..Alternatively.across.of.that. eliminate. Bottleneck Management In. the.to.system’s.we.than.with.implies.able.exceeding.workflow..system. operations. takt.system.facility.any.has. control.A.levels.single.work. operational.takt.time.also..d..of.one.certain.is.of.process.those.work..methods.Lean.lower.is.our.through.excess.system’s.This.tasks. workflow. point.be.takt.or.system’s.operation.. single.process.a.added.be.because.important.to. time.operation.tools. any.. path.3. become.obvious.or.system’s.with.sequence. that. in. of.is.continue.As.operations.. path.having.. parallel.nonbottleneck.of.operations.supply. the.13 7.cycle.provided.times.a.ensure.through.to.and.shown.a.Lean Six Sigma Basics  ◾  85 Excess Capacity Operation 3 Operation 6 Takt Time Operation 2 Operation 4 Operation 5 Operation 2 Operation 7 External Demand Too Little Capacity Figure 3.3.of.to.the. made.balanced.more.A.be.takt.time.critical. longest.time..may.through.cycle.meet.balance. a.work.elimination.reduce.parallel.that.time.be.through.other. This.having.path.that.bottleneck.path.should.called.a.known.additional..relative.may.resource..materials. time.flow. critical. total.will..flow.a.improvements.system.within.will. on.been.one.at.bottleneck.a.means..its.combined.only. to.to.operations.it.a.chain.times.of.13.operations.of.an.

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

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

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

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

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

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

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

Lean Six Sigma Basics  ◾  93

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

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

2. Maintain standard production rate

3. Reduce yield loss at start-up

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

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

94  ◾  Lean Six Sigma for the Office

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

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

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

1500

1250 Units (000)

1000

750

500
M ar

ch

Ju

ne p

Se

m te

be

r e

D

m ce

be

r M

ar

ch

Ju

ne p

Se

m te

be

r e

D

m ce

be

r M

ar

ch

Ju

ne

Month

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.

utilization. been. In. system.or.needed. is. scheduling.to. has. In.a.systems. position. are. or. implement visual Control and pull Systems—Kanban A.and. external. efficiency. a.has. 50.services.standardized.best. a.upstream. mistake. customer. This.customers.Lean.been.20. customer.because.productivity. positioned.when...investment. that. chain.are. it.be. supply.a.demand.of.in.States. is. using.that.results. capacity.minimum.within.highly.manufacturing.work.require.United. that.Many.capacity.. higher. originally.the..capacity.cards.similarly. electronic. is. to. based.also.of. inventory.highly.on.environments...As. statistically.visual.100  ◾  Lean Six Sigma for the Office supply. of.plants. its. investment.the. extinction.used.measure.inventory. . to.anticipation.if.to. was.. in. and.organizational.supply.. In.automobiles. efficiencies. dominance.. system.work.or. pull.highest. optimum. or..utilization.system.example. Toyota’s.demand.Toyota’s. example..is. ±10.systems.deployment.or.the.scheduled.with. including.Key.assets.in. manufacturing..and.customer.due..way.these. good. shows.dispersed. signals. supply. a.required...system.key. increase. satisfy.of.equipment..component... of.degrees. through. with. K .quantities. organizations.allocated.This.. and.to. competitiveness. Toyota.chain.examples.needed.scheduling.supply.asset.scheduling.production.within.of. utilization.demand.just. A.pull.Also.. cumulative. forecast. through.can. varies. chain.consumer.operational.the. push.control.. of.varies. using. demand.ensures.that.in. initiatives.notify. approximately.a.systems.industry.value-adding. demand..the.system.where. in.originally.content. An. chain.at.and. is.synchronization.wasted.to. forecasts.to.As.organizations. manufacturing. external. Pull.subcomponents. network.of.is.operations.where.depending..contrast.chain’s.dominant. which.to.capacity. suppliers.and. work.capacity. s .and.upstream.it.. have. been. proofed. than.analytical.demand.the. supplier.a.an.fluctuations.to.. using.a.at. deploy.system.is.also.its.especially..to.scheduling. assets.with.manual.industry.Lean. the.at.level. increase.supply.varying.system.actual. or.the.Figure.work. by.is.efficiencies..recently. In.stations.nationally. manufacturing.successful. These. by. supply. lower. visual.investment.tasks.success.This. manufacturing.become.was.customer. upply. called. industries. systems.. external.of.chain. Other. deterioration.an.satisfy. popularized.of.performance.. years.and.situation. scheduling.percent.industries.3. should. However.are.be. anbans.supply. by.the.been.simplified.can.applied.types.organization. of.. the..efficient.shown.to.may. pace.of.the.manufacturing.. asset. is. estimated. to.downstream.pull.be..out.various.methods..chains.a.have.chain.. summary.electronics.High. maintain..true.increase. move..methods.by.example.In. or. chain.pull. demand..are.minimize. improvements.operations.more.is.system.key.include..an.points.internationally.to.actual.points. than.the.work.be..few. chain. allocation..future.a. proven.have. system. a. and. be..in. demand. across. and. more.name.deployed. designed. mixed-model. people.systems.used.overall..is. examples.so. positioned.is.that.in.At.. supply.. to. scheduling.asset.efficiency.all.

are.pulling.an.containers.demand.by.sense.necessary. through.industry.makes.be.in.in.from.pull.center.office.modified.implement..service.external.methods.is..in.some..a.demand.Kanban.materials.in.office.in.to.asked:.the.industries.types.Whereas.it.of.deploy.environments.As.systems.an..to.Lean Six Sigma Basics  ◾  101 Supplier 1 Supplier 2 Publications International Sales Purchasing $$ International Marketing Telecommunications Supplier 3 Personnel Accounting Manufacturing Shipping Packaging ABCDEABCDEABCDEABCDEABCDEABCDE Mixed-Model Scheduling Customer Demand Figure 3.often.highly.to.or.apply.is.to.fluctuates.and.of..variable. one.external.environments.demand.environments.question. in.percent.than.McDonald’s.more.highly.. .systems. However.example.monthly.manufacturing.is.baskets.20 8. Supplier networks and support.demand. Pull.these.an.example.±100.of.to. which.system..machining.As.using..cards.does.move.another.particular?.and.concept.may.in. seasonal.the.its. within.difficult.average.of.also.How.

is.or.pull.of.sequence.the.a. divided. of.. inventories.accounts.in.and. flexible.operate.demand.of.that.product.time. three.scheduling.are. technology.order.medical.more. to. idle. should.There. system.requested.when.in..often.or..based. are.design. meet.in. and.readings. has. patient. Lean..office..3.system.of. hour. then.these.example.this. requests. rather.was. end.a.of.the.to.by. .an.customer.they.use... in. to.methods.on. to. d . In.to.push.work.made.capacity.efficiency.simple.paperwork.customer.using.system.discarded. not.future.the.in. equipment.suggested.the.because. 20.electronic.process.signal. their.appointment.In.In.service.chapter. this.rate. people. work...these.is.in.is.the..made. employers.due.process.fact.anticipation. high.In.by.a.. order.more.are.highly. answer. each.completed. to.hour. ensure.scheduling.102  ◾  Lean Six Sigma for the Office restaurants.work.process.the.job.process.patient.other.been..100.at. Redundant. customer.22.process.food..more.generic.based.of.in. yields. emphasis.should.hour.product.a.calls. flexible.The. tasks. consider.to.operational.customer.and. needs. appointments.system. 36.must.be.a..an.goal.or.forces. s .combination. of.the. left...is. utilized.office.request.receivable.at..Once.this. technology. ervices.materials.restaurant..several.are. time.. be. system.the..the.if.Kanbans. reduce.visit.begin.has.. An.appointments. Lean.customer. on.We. important.. visit.a.per.receivable.of. time.through.process.example.. period. appointment.the. They.an.customization.simple.are.100.through. into.a..in.the. station. also. or.are.800.are. the.realized. technology.people. buffer. a. Each..system..patients. concept. a..manufacturing. job.situations.shows. technology. each.receivable. when.Burger.invoice. be.evaluation.for.when.a.and.Queuing.schedule. of. Continually update process technologies In.in.pull.are.other. orders.21.though.made.which.are.. support.“pulled”.words.(the.invoices. to.the.for.to.appointments.Also.move.their.many.push.In.queuing.heavy.customer.visitors.is.initiate.medical.case.pull.. context.contrast. use..the.be.and.discussed.differentiated. this.phone.orders.can.begins.advance. or.of.same..example.a.information.be. groups. follow-up.the.reworked.accounts. However.noted. initiates.per.In.be. Figure.hours.scheduling.resulting.In.workflows.product.in.to.over.customers.must.when.As.service. would.at.system.in.becomes.. will.systems.signals.accounts. can.appointments.in.Figure.type. are.this. questions...of. made.an.other.to.appointment.3. and.that.an. on.This. but.and.models.. This.in.with..made.work.has.loss.using.a. arrive. is.one. higher.example. This.annual.service.of. a.push. technological.100. the.models.schedule..orders. an.on.or.dental. process.to.of. In.the. example. are..several.sophisticated. is.site.arrive. equipment. but.period. this.provided. However.assumption.seconds.year.scheduling.order.are.customers. employees.to.people. is.prepare.. changing.to.assistants.which.King.moved..fast.This.contrast. or.rescheduled. move.8. person.its.patient. itself.there.a.not.is... most.using.that. a. It.a.this..system.. octor.process. system.example.object). a.shown.advance.in.degree.a.service.systems.been.or. waiting. to. system. by.providing.. a. utilized.with.in.at.fair. at.

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

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

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

This. River.Press.processes.has.. methods. James..all.. be.W. Tapping.which.York:.2008.its..accelerate..A.including.a.the. are.if.resource..Business process change—A manager’s guide to improving. simplify.was.Managing agile projects..MA:.Hall.a.then....a.It.were.economic.(NVA).was.complexity.of.is.information.networks.1986. were.2006. Suggested reading Sanjiv. York:.NVA.bottleneck.useful.identify. can.resources.. workflows..for.system’s..will. eliminated..the.path. in. Dan.York:.path.and. to.A. adding. Don.The. process.Morgan.in.in.Paul. Lamming.also. not.Operational.The goal.. and.In.. and.Liker.constrain.to.in.Hall. chapter. this.is. Paul.Press.Press.cost.their.and.is.20 keys to workplace improvement.York:.2003.improvement.pull.proof..NJ:. first.Rich.. utilized.as.Martin.internal.translated.major. (BVA)..added.used.. m .work.an. James.that.deploying.been..Jeff.improve.process.be.tasks.reduced..this. adding.VSM. The..to.Goldratt.It. istake.Upper. an.2005.system’s...analyzed.Jeffrey. that.value. redesigning. on.process.and.projects.the. identify.non-value-adding. Kobayashi.Harmon.In.These.a.were.possible.was..A. value. were. applied.Publishers.York:.work.Martin.into.created.a. Jones. step..New.sequence.New. Value stream management.Productivity.Productivity.Prentice. to.cycle.waste.chapter. 2006.to. to... high-performance.that.Barrington.mentioned. work. and.the.improvement.Cox.2nd.methods.process.be.system.it..will.through.non-value-adding..and. takt.organization’s..metrics..context..Francisco:. and. Lean.M.through. should.flow.. (VA).process.methods..once.Iwao.major. to.any.certain.critical.of.. Thomas.eliminated.a.(EVA).Hines.North.New.K.NVA.. supplier.work.Richard.to.2007.1995. shareholder.Lean..time.the. James..to.financial.it.Prentice.takt.improvements.McGraw-Hill.value.of.and.Saddle.New..M.Great.projects. Eliyahu.its. activities.also. be.presented.analyzed.to.critical..stream. improvement.to.together.numerous.complexity.and.can.in.New.concepts.prior.workflow.obvious.San. 5S for the office: Organizing the workplace to eliminate waste. business..a.describes.system....Morgan. by.be.New.work.work. recommended.a.reduced. through.process. operational...breakdowns.flow... an.that.W.The.106  ◾  Lean Six Sigma for the Office information.enhance. .tasks..of.to.Operational excellence—Using Lean Six Sigma to translate customer value through global supply chains. focus..productivity. tasks.Lean.system’s.Auerbach.tasks.made. that.eliminated.(VSM).the. assessment.and.time.the..also.creation.key.so.time.Several.will.operational.Lean Six Sigma for supply chain management.decrease..improving.should.. Peter. and.map.provide.. value.be..presented.Kaufman.shown.ed.system’s..workflows.system’s..its.work. Fabrizio. standardize. Cousins.continued.be.the.process.VSM.Nick. and automating processes.2000.and.and.this.tools..their.quality.York:.work. create.and. and.be. stabilize.Productivity.a.River.parties.Press.remaining. organization.discuss.future.The Toyota Product Development System.also. to.operations..discussion..Augustine.

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

.

plAn And ConduCt the KAizen event 2 .

.

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

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

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

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

.layout. office. the.them.usually.productivity.these.similar.time.time.absence.work.can.firsthand.a..electricians..and.addition.the..conduct. include.war.during.Kaizen.which.occur.visible.senior.and.facility..continuous-improvement. the.support.It.activities.activities. a. moving..an.conferencing.environments.of.may.computerized.all.for.so.include. In.Kaizen..event. changes.is.be.breakout.room). enable.may.an.agenda. support.and.continued.be.lack.period.not..not.after..if.an.back.It.In.help. in..an. necessary.analyzed. back-office.various.for.many.its.a.gathered.work.encouraged. been. Kaizen.is. will.a. of. activities.functions.In.reasons.... my.organizations. process.make.map.were.room. comprising.necessary.rooms.much. develop.a.activities.of.design.(VSM).an.so.. to.to. financial.the.In.people.by.operations.accounting. a.lost..near.use. message.equipment.activities.should.team.in.for.fact.work.most..a.activities.manufacturing.of..from.that.and.a.need.manufacturing.information.marketing.made.likely.over.operations.to.help.event. systems.information.reserving. This.rooms.conference.note.war.process. for..rooms.process...collect.The...finance.or.and..to.may.to.. sustained.to.for.team.concept. management..period.process.isolated.is.by.are. event.relevant..despite.also.improvement.complete.of.support.very.to.my.important.In.exist.be.if. . often. reason. to.in.The.and.organizations.completed. reserved.materials.on. team. an.a.traveling..and.or.organizations.. roject.process..experience.people.common. management..interesting.not.applications.are.because..to.be.. Kaizen.to.event.It. balance.need.service.the. by.or..that. charter.read.various.toward.of. their.. professionals.and.within.many.and. for.negative.supplier-facing. These..Kaizen Event Planning  ◾  115 the.minor.software..practice. a.available.sends.a. an.one.in.dominated.result.operations.the.office.analyze. improvement.time.for.other. make.to.required.these.these.may.organization’s.moved.to...stream. Noncompliance.operations.automation..their.product.a.reserving.(also.plumbers.team’s.during. the. and..and. process.include.in.computer.activities.. need. for.during.people.to.contrary.may...event.these.to.is.sales.time.improvements.access. this.a.are.events.is. prepare.In.a.rooms.activities. office. Kaizen.a.Also. equipment.addition.team.been.research.without.In.make. ongoing. and.owner.the.should.people.additional.analysts.and.be.that.to.information.my.in.the..a. chapter.. team.remain.then.necessary.extended.extended.lower.. that.period. obtaining. event. materials.is. event.focus.improvement.place.be.. a.rooms.a.a. experience. an.office.would.work.war. The.value.so.articles.to.many. and.that. are..improvement.local. resources. process. in. has. process. improvement.improvements. and.increased.personnel.general.and. It.of.the.both. information.other. conference.team.called.and.in.organizations.and.management.support.kickoff.rather.enable.may.we.process.apathy.procedures. information.than.. also.of.being.time.has. coding.the.service.environments.making.lack.seldom..held.materials.or.improvement. of.it.equipment.everything.. select.organization’s.information.rampant.available.reflects.area..in. p .location.event.have.will.changes.improvement.programmers.opinion.is.engagement. we. the.also. see. discuss.must.a.seldom.looking. team’s.This.may.the.support. will.activities.team.in.that..to.or.the. communicate.for.a.interesting.client-.improvement.changes.are.upgraded. partitions.human. procurement. and.

are. are. However.also.ensure..objectives.its.completed. team..(EVA).to. that.is.objective.increase.to..process.116  ◾  Lean Six Sigma for the Office Select a Project Charter An.Lean.projects. activities.ways.beginning.leader.separation.team. of.be.process.improvement. time.objectives.on.owner.to.goals.Six.opportunities.of.shareholder.its.leaders. current..a..It.leading.breakdowns.root.remains.goals.not.are.portions.objectives.Recall.creation. achieves.an.objectives.roles.an.the.or.ensure.every.expected.in.event.are. and. use. analysis.if.align.In.uses. project.identifying.activities.help.directs.should..should.which.Sigma..be.project.workflow. leaders. coordinators.to. 2. it.Chapter.leaders..and.good.expenditure.its.not.may. to..Kaizen.with.attack. checklist.. Event.be.root.lead. be.weeks. a.to.these.schedule..is.These.and.then.economic. Figure.that.are. formal.the.of.activities. work. project.their.summary.a.charters.only.its.may.to.for.Kaizen.to.process.last.leaving.to.and.event.properly.or.team. facilitators. in.to.so.In.As.activities.create.on.that.. an.lose.the.their.Kaizen.requires.organizational.a.context.five.considered.internal.root.to.created.should.in.capital.This. The.that.analysis.event.achieve. and.They.of. Assign a Project Leader and Team Members A.be.causes. or.few..across.team’s.elsewhere.. Chapter.deployment.to. improvements.or. root.experienced..process. Kaizen.of. their.prioritize.on.noted. has.components. impact. owner.and. the. an.improvement.done.event’s..after. an.schedule.Also.complicated.would.a.perspectives.that.discussions. as.should.project.a.that.continuously.train.and.to.If.financial.discussed.to.In. plan.project.also. important.a.identification. should.three.of.execute. a.the.organization.miscellaneous.perhaps. cause.a.assigned.project.roles.by.its. and.organization.4.. our.1. consultants.execution.only.This.schedule.charters.increase.overall.should.its.goal..1. process.be.and.However.workflow.this.executed.value.a..Kaizen.to.productivity. local. objective.and.is. assume.the.and.their.Kaizen.deployed.productivity.workflow.its.is.and..added.analysis. discussion.based.and.deployment.opportunities.an.and.forms.workflow.to.should.is.filled.charter’s.extensive.person..charters.objectives.event.that.is.project.added.(EVA). As.in.may.all..results.situations. .and.associated..elsewhere.specific.necessary.just.to.able.The.a.of.charter.planning.the. been.the..a.and. executed. In.take.projects.discussed.complicated. process..a.Identifying.currently. project.major. over..resources.that.the. for.productivity.and.all.assigned.of...very.be.be.portion.to..project.be.that.a..event..team.require.are.ensure.were.value.help.shareholder. leaders.of.the.leader. process. charter.organization.should.may.a.same. will. in.redundant.result.relative.planned.Kaizen. events.the. example.owners.a.days.cause.cause.or.In.productivity.. use. shown.events.were. the.organization.or.the.to.project.charter.project.to.especially.. a.in.be.basis.process.team..clearly.economic.candidates. we..want.analysis.fact.selection.project.show.will.may.event.months. people.of.data.to..activities.execute.

for.are.efforts. the. help.to. on.to.process. of.This.schedule.suppliers.rest.communication.the.proper.performing. improvements. done.success. larger. such.observes..This.on.room.the.move.a.does.the.project.3.the.on.enable.stream.enhance.have. and.and.a.event.a.of.information. an.not.on. Additional.may.team.Kaizen.An.works.Kaizen. posted.Kaizen Event Planning  ◾  117 have.. will.teams.Kaizen.In.includes.sticky.event.be.operation.members.being.to.regarding..is.also. process..similar.This. as.well-equipped. analysis.team. as.on.objectives.The. greatest.her.the.is. have. regarding.work.a.analysis.an.facilitated.separation.a.the.built.event.the.separation..through.and.in...conference.of.to.from.on.workflow.is.evaluate.of.run.of.its.a.four.process..every.ensure.mature.skills.during.led.process.of.person.making..focused.time.impacted.evaluate.and.diverse.be. impact. financial.as.is.leader.on.a.a.facilitators.team.of.brown.of..The. their.paper.the.metrics.display. keep.is.paper. a.materials.but.leaders.the.the.paper. with.a.called.of.this.and.facilitator.and.team.improvement.always.in.management. their.the.for.wall..team.activities.a.metrics. Reserve a Conference Room A.event.process.the.team.. information.Chapter.take. and.reasons.through.their.needs.leader.that.operations.as. are.especially.event.Also.properly.The.the.through.should. the.in.adjacent.cycle.. to.well..conference. the.facilitator.week.used.The.also. well.Another.members.meeting.norming.team.team.minimum.is.day-to-day.must. When. data.for.not.. and.the.the.an.related.single.room.other. space.. by. and.a.of.the.Additional.on. flow..diverse...the.will. organization..be.that.changes.(VSM).brown.Kaizen.their.VSM.facilitator.the.reserved.it.discussed. event..note.impact..map.as.are.Kaizen. activities.must.and.information..owner.held.methods.a.to. event. have.the.which..brown.build.examples.the.the.VSM.summary. also.team.that.focus.the.event’s.is.called.paper.process.necessary.process.a.will.supporting.of.that.one..depending.the. the..graphical.process. information.war.to.or.organization.this.chapter.team.a.is..up.the.keep.the.forming.to.notes.to.event.member.reason. improvement. is.. also.an.chosen.These.operations.team.attached.In.to.storming.or.members.ensure.of.with.charter.is.using.event’s..many.and.information.role..team.Kaizen.3.that.also. the.to. properly.owner.the.should.important.if.recommended. . on. Role.walls.customers.event.tools.his.who.be.team.to.display. notes.their. key.should.in.process.to.event.necessary.contains.of.a.involve.fact.process.represented.and. owner.value.notes.used.operational.the.and.improvement. team’s. is.facilitation.was.A.one..by.recommendations.process.how.uses.instead.. different.stages.Each.to.brown. facilitation.that..local. metrics.team. through.match. collection.activities.be.process.that..organizational.an.Kaizen. whereas.room.and..A.of.leader.placed.schedule.room.mentioned.true..team.operations.. be.using.reports.yields.the.for. flow.materials.team.the.the.project.support.the.process. activities.activities. process.and.active.and.work.the. Team.an.dynamics. operational. perspectives.performance.is.area.

should.If.span.and.brown.charts.participants.team..personnel.plumb- . accommodate. the.by. depending.to.team.several. In.who. parallel.that. which.have.all.manufacturing.a. a.In.the.supplies.close. and. that.must.concept.materials. it.larger. be.geographical.and..In.a.collect.built. and.conference.. should.. ireless.by..size.the. available.the.tape. is.the.items.to.reference.markers.necessary.required. team. accessible.have.and.a. may. breakout.conference.this.include..capability. manufacturing...systems..books. other.activities.process. Including Breakout Rooms In.process.necessary. materials.equipment. Also.activities.templates.may.rooms.being.to. work.to. necessary.clearly.the.is.sticky. operations.using.Chapter.leader.walking.The.photograph..analyze. data.It. required. analyzed.an. directly.information.and.paper.should.pencils.service..access.materials.subject.forms.and.by. around.Internet.cannot. w .There.paper.also...a.VSM..have.applies. notes.team.a.is.when.their.is.answer.be.for.move.camera. c .and.many.we.team.it.flip. local.staplers.activities.look.and.used. to..management..event. also..of.to.validated.projectors.video.a.assist.conferencing. smaller.mentioned.as.they.also..value. which. and. large. conference. working.have.that.when.be. additional.event.previous.event.stated..its.work.the.questions. or.The. omponents.workflow. by. of. lines.118  ◾  Lean Six Sigma for the Office data.used.not.and..same. be.an.is.and.through.Recall.in. collected. Obtain Supplies and Equipment The.team. rooms.conference.and.audio.to.should.the.front.the.that.analyze.printers. of.people.that.equipment.help.will.stream.team.work.Initially.needed. work.its.Kaizen.also.well.time.to. and.attention.different.machines.to. able.the..room. in.section.activities. to..except.. rooms.map. Ensure Facilities Are Available.fast.during.However.get. area.a..pay.initial. air-conditioned.3. several. communication.team. conference.methods.room.true..room.However.a.process.facilitator.are.and.process.be. be. Lean.are.systems.especially..because.distracted. it.to.table.information. is. environments.be.required.phone. comfortable.then.collection. from.to. the.locations..a. each.in. groups.should.in. activities.on.process.made.that.matter.technical.presentation..should. are.activities.up. people. in.provided. lines.its.the.VSM.a. consists.the. important. groups.could.the.be.experts. of.important.as.are..workflow.was. addition. verify. should.discussed.does.and.a. form.after.as..similar.tools.This. through.to.the.team.war. to..there.the.these.if.execute.supplies.paced. by..obvious. team.it...accuracy..information. Ensure Support Personnel Are Available to Assist the Team Support.of.other.rulers. wireless.is.. is.(VSM).reserved. is.Internet. to.comprising..not.and.fax..

relative.elsewhere.that.activities.longer.quite.within.As. to.activities.and.is.layouts.in.time.evaluate. when.depicted.prior.are.the.toward.in.are.office.. eliminate.of.drawing. them.There.within.an.to.up. layouts. workflows.experts.of.on.quantified.to.good.the. information. its.important.are.improvement.support.and.and. Operational.move.use.personnel.through.a. uality.that.workflows.goal.usually.most.of.be..rearrange.than. information.. many.process.the. between.when. members.details. helping.work.flow.ensure. available..process’s. the. useful.depend.would. by.the.is.types.and.that.for.an.cost.similar.location. similar. and.... materials.rather.collection. In.rework.geographically. situations.make.service. and.is.also. rooms. objects.time..activities.and.finance.office.and. charter.The.related.a.a.collection.and.example. addition.equipment.process.work.the.equipment.scheduled.true.is.a.the.of.serve.the. to..work.is. In.area.Kaizen.an.to.within.one.to. analysis.Kaizen.exact.work.5.approach.depending.and.activities. Kaizen.the. skills.may.information.location.are.team’s.in.different.data. be.work. using. The.event.because.lines.knowledge.Finally.be.stations.show.if.moving.materials.. to..time.team..information. are.of.be..should.to..moved..software.floor. usually.cycle.activities.found. Collect Process Information of Floor Layouts.as.of. and Procedures Floor. environments.be.to..diagrams.subject.maps..extent. and. reasons.organization.a.and..to.will.as.people.Ideally. financial. analysis. systems.increase.detailed.As.lines..event.process. related.relative.to.and.work.sponsor.electrical.is.dispersed.pneumatic.needed..to.on. that. a.activities.the. or.In.this.that. showing.location.However.workflow. reports.. total.maps.data.of.an.likely. exchanged.This.materials.the. electrical.layouts.of.contrast.process..been.a.plumbing.set.for.of.work.a..projects.to.traveled.support.as. to.similar..Figure..that..introduction.distance.required.inefficient.. them.in.between.plumbing. changes.workflows. understand..most.for.flow..well. This.It. and.information.systems. will.programmers.is.and.information.is.routed.the.these.data.constructed.well.is.. are.a.prior.to..the..event.to.regard.end.minor.or. a.specialized.are. process..and.as.may. rocess.similar. team.to. overly.have.loops.by.require.time.need.of.front.procedures.the. analyze.stations.these.12.meeting.to.spaghetti.they.a..the.of.completed.require.especially.necessary.as.the.As.It.Kaizen Event Planning  ◾  119 ers. q .guaranteed.as.sources.result.useful.available. for.because.and.who.collection.have.on.collected..be.example.people.. will.was. identify.a.and..a. efficiently.team..their.information.information.. information.the.prior.especially.information.improvement.. also.the.a.be.there.type.this.between.flow.causes.also..In.use.the.Kaizen.are.more.or.diagram. information.team.to.event’s. p .that..wiring.be.electricians.is.matter.an.to.than. floor. could.of.that.improvements.equipment.will... important..process.eliminate.of.similar.accelerated.will.also..physical.changes. how.industries.assembling.historical. project. and. the.In.stations.the. manufacturing. cycle.taken.of.it. Workflows. complicated.breakdowns.extent.an. team.will. .

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

a. most.movement.a. manufacturing.the.to.process.during. integrated. activities.should.be.each. assessment.team.be.completing.of. in. to.specialized.if.VSM.by.describes. is.assistance.at.completed.take..enable.then. area.a. if.and. with.. IT.collection.setup.being.addition.is. Another...used.these.next.within. electronic. electronic.to. rework..Then.operations. Kaizen.at.prior. capacity.available.as.IT. operation.addition.will. inventory. example.sequence.amount. the.operational. are. than..These.a.its.physical. and.constant. an.of.help.of.behavioral.disprove.difficult.it..to.can.Kaizen. be. process. waiting.process.for. is.very...Kaizen. difficult. Data.quantities.by.professionals.the. operations.moves.snapshot.these. pictures..highly.well-defined. operational..overall. input.area.also. IT. operations. downtime. helpful.a.These. required.tasks.shown. in.times.readily.and.well.the..cycle.quickly.the. data.to.templates. information..included.elements.process.operation..run..team.obtain.takes.to.environment. a .manual...also.reliability.activities.of.3. have. is.includes.discuss.For.sequence.and.described.. times.focus.exists.date-stamped.logic.a. available.or.data. collection.an.Figure.it.steps. quantify. to.output.well.methods.if.show.data. in. that. Also.a.But.processing. team.of.team.cycle.They. assessment.a..systems. also..activities.produce. because.manufacturing.pictures.characteristics.not.as. 5.time.and.. easier..its.the. c .as.that.times.it. percentages. and.relatively. carefully.business.Also.days.inordinate..quantify. transactions.it. it..reason.mathematical.be. issue.efforts.extracted.This.collection. floor.operations..data.. will.it.to.to.Kaizen.contrast.process. a. ollection.operation.Kaizen.must.data. unique.improved..of..process..an.the.easy. their.be.evaluation..in. activities. date-stamped.to.into.frequencies.their.this. unless..times.downloaded.an.unloading.logic.consist. is.in.data.calculating.. information. would.into.inspection.also. both.defect.may. in.is.scrap. requires.as.Recall. fact.to. Taking Pictures of the Area to Be Improved In.and. office.transactions.support.production.of.information.Kaizen.operation. how.of.the.and.tasks..physical.taken.In. Chapter. performed. times. not. are.as.in.may. service.will.and.used.be.that.spreadsheets..processing.value-adding.every.an. setup.build.to.service.is. advance..professionals.be.strategies.to.. access.waiting.cycle.available.a.be. equipment.well. more.in.that. are.workflow.assumptions.to.of.team.If.by.work.would.the. operations. Kaizen. information.. between.systems..as. usually. percentages.will. where.event.information.than.machines.a. data. planned.the.a.several.required.are. and. that..Kaizen Event Planning  ◾  121 and..The. In. understanding.are.most.software.VSM.(BVA).if.of.are.Ideally. collection.collecting. In.a.of.elements.usually.Kaizen. does.difficult.sufficient.walkthrough. could.provide.event.work.used. by.collection.and.collection. we.9. . service.service. access.professionals.to.event.. As.logic.rates.need..collect.unless.how.were.verify.This.original.as.and.this.having.to.estimated.review.locations.likely.then.quantitative. total.time.IT. nalyst. its.a.important. the.operations. the.performing.is.metric.with..data.to. In.code.team.time.situations.office..data..work.rather.a..

event.work.to.to..audit.seeing.and.a.engages. a.specific.on.environments..But.attached.Also.In. team’s. as.operations..have.be.communicating.before.This.be.analyze.in.data.than..down. rocess.process. the.VSM.also.associated. However. process. Kaizen.improvements. significant. it. analysis.a.anecdotal.and.in.and.the.is.showing.operational.. areas. work.the.available.work.information.quickly. excess. A..data.they.collection.5S. machines.on. computer.general..process.manufacturing. picture.breaks.area. materials.pictures.well.it.of.team..well.after.Sigma.of.useful.operating. solutions.good.management.firsthand. as.and. when.and. reports..is. a.team.activities.configuration. Obtaining Examples of Best-in-Class Process Conditions Six... this. presence.root. under.very.actually.Kaizen.may.directly. relative..easier.relationships.the.from. complaints.a. equipment.collects.pictures. useful.correlate.summary. information..Kaizen.of.of.are. and.of.other.. supplier.to.problem.its. similar.and.shown.see.causes.of. process. exception. process.as. screen.. and.perform.it.physical.better.after.extensively.information.team’s. p .examples.issues.shots.a..will.pictures. a.showing.the.show. cannot.show.be. reports.typical.If.a.before.clearly.be.may.as.amount. issues..other.Kaizen.useful.walkthrough.cluttered.using.state. they.of. to.spatial.as.These.. the.people.if.information..5S.defective. not.is.a.advantage.work.owner.process.of.improvements. of.improvements.versus.a. create.service.their.could...because.examples.Another.its.as..data.people.process.comments. has.more.Pictures.especially.firsthand.that. Countermeasures.to.products. Obtaining Examples of Process Breakdowns It.certain.consensus..and.can.activities.in.process.that.in.conditions.other.a.have. conveys.how.conditions.that. or.office..understand.stations.a.not.also..defects.both.computer.is.“after”.also.In.been.is.the.a.a.may.team.must.such.examples. examples.their.area..include. problem.collection.are.of.most.methods..materials.rely.A.process.“before”.true. performed.applying.among.important.cleaning.a..areas. But.process. ..team.not.equipment.work..the.as. shots.process.of. of.data.during.cleanliness.the.the. has.verify.provided.the.activities.showing.a.will.examples.pictures.problems.how.work.or.a.required. be.problem.will.of.manufacturing.people.show. eliminate. that.screen.approach.be.project.the.advance.process.and.This. performance.useful.major.to.the.of.has.enable.a. and.reach..breakdowns. information.with.was. In.a.others. and.the.used. physical.processes.Kaizen.of..in.team.in..to.of. a.to.a.Lean.reports.components.substitute.be.seen.collection.pictures.management.a.“good”.possible.that..under. the.Kaizen. well.of.been.to.for.a.team.pictures.area.versus.to.of.activities.process.performance..as.may.122  ◾  Lean Six Sigma for the Office where. management. location.systems.team.goal.process...as.accuracy.various.root. for.issues. customer. up.problem.is.to.cause.quickly.work. of.and.the.quantities. forms.examples.

entitlement.under. and. activities.a.their. focus.the.as. that.4.its.checklist.the. scores.plotting.called..the. an. A. .of..Those.with.a.performance.high..may.performance.“entitled.group.a.work.AHT.certain.it.and.and.some. for.two-dimensional.An..required.time. and.another. performance.than.employees.At.implies.error.be.people.It.investigate.best. Kaizen. dates.poorly.there.accuracy.complete.shifts..operates.that.suppose. This.shows.and.process.types.three.a. identify.the.sense.of..significantly.scores.they.Kaizen.six.process.a.quality.employees.work.over. place. or.quality.their.the.calls. planning.to.Figure.an.are. the.shift. of.representative.would.have.process.should.1. is.standards.the.AHT.measures.similar.the.evaluated. team.method.employees. compared.other.two.of. set. provide.and. predefined.It.their.and.not..design. to.of.portion.to.improvements.the.length.by.prioritization.that.versus.. Developing a Schedule for the Kaizen Event The.variation.noted.rating.entitlement.that.. a.vary.higher.rate-based.having.the.performance.problems.provides.As.quality.a.AHT.who.calls. analysis. normal.well.high.the.when.AHT.employees.is.is.group. Examples. will.very.team.may.of.are. on. in.in.as.will.and.that. this.match. execution. the.from.a.at.quality.point.the.a.to.Knowing.the.having.an.quickly..quality.had.causes.its.Kaizen.to.one. metric.would.more. a.investigate.assumption.sense.conditions.minutes. performed. Figure. took.on. worse.shows.require.work.a.types.of. listed.to.average. quality.measuring.upper...conditions. all.low.work.good..calls.that.example.well.identify. activity.of.scores.meeting.and.quality.of.organization.in.evaluation. of.Six.In.analysis.would.make.of.approach.teams.event.a.summary.the.process. has.remaining.which.an.process.standardized.and.considered.rate.suppose.scores.the.useful.team.accelerate.root.leaders.of.Kaizen.completed. activities. event.AHT.this.investigation.in.This..planning.customers.process.one.minute.using.process.level.process.analysis.and.call. only. is.more.Kaizen Event Planning  ◾  123 enable.poor. create.statistic.be.would. to.their.operating.provide.this.employees.of.employees.for.dates.also.weeks. specific. shift.a. of.to.limit.incoming..event.the.that.the.should.to.begin.while.an.having. provide.collected.minutes. why.calls.is.why.quickly. Kaizen.required.checklist..handling..it.been.1.Kaizen.the.based.for.the..entitlement.the.collected.that.to”.a. example.can.the.. sponsors.comparing.than.Sigma.be.under.AHT.to.employees.enable.causes.summary.objectives.two.others.several. three...average..office.In.but.or..the..ten.facilitators.activities.is.errors.available.of.approach.to.completed.be.graph. An.low.in. the.be.ten.due. book.their.work. to.for.organization.gathered.answered.an.entitlement.that.poor.information.(AHT). schedule.other. lower.root.process.did..of.simple.the..performs.under.to.be.of.would.An.performing.ask.event..scheduled.employees. if.As.However.also.an.make.scores..for.it.on.analysis. their.significantly.one.In.to.The.conditions.the.of.project.quality.best.often.possible.is.a.Employees.two.of.goals.quality..what..is. predefined.4.resources.frequencies.shifts.is.a. that..performance.for.

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

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

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

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

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

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

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

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

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

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

134  ◾  Lean Six Sigma for the Office

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

Kaizen Event Planning  ◾  135

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

136  ◾  Lean Six Sigma for the Office

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

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

Kaizen Event Planning  ◾  137

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

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

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

138  ◾  Lean Six Sigma for the Office

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

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

Person 1

Person 2

Person 3

Person 4

Person 5 Person 6

Person 7

Person 8

Person 9

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

Figure 4.3

ealuation of a lean Kaizen eent.

Average

Total

Kaizen Event Planning  ◾  139

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

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

140  ◾  Lean Six Sigma for the Office

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

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

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

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

a. create.1 Why Create a value Stream map? 1.levels.creating.the. prepare.a. VSM.5.project. be. . to. 5.144  ◾  Lean Six Sigma for the Office table 5. we.by.. project.higher-level. focus. focus.charters. result..VSM. of. described..project.at..VSM. chain.Table.this. iscuss. 6.shown.In.linked.a. workflow.and.defined.chain.several.lower.to.well.breakdowns. 4. 2. was.words.organization’s.a.these. advantages.VSM. 3.5. major..a.used.workflow. have.and.that. will.. been. for. This.of. workshop. Identify rework and non-value-adding (NVA) operations.more. as.Figure.be. Identify areas for operational improvements.. our.maps.other.to.eliminate.in. The. Prepare for the Value Stream Mapping (VSM) Workshop 2. the. first..statement.three. Provide process documentation. specific.1. to.1. As.process.of.it.important. step. Identify process simplification opportunities.project.context.supply. Construct the Value Stream Map (VSM) Figure 5.In.shows. on.charter’s.strategically. In.assumption.our.are. to. Understand key process input variables (KPIVs) and their effect on key process output variables (KPOVs). at..VSMs. Kaizen.of.an.in. of. when.can. a.project. d . discussion.supply.problem.to. Analyze the Value Stream Map for Improvement Opportunities Value Stream Mapping 1.be.In.will. The value stream map is a visual model of the process including all key operational metrics. level. is. a.detailed. a.1 three major steps to creating a alue stream map.be.is.charters. created.sequential. detail. the. charters.a.that.major. process. team.across.objective.will.situations. 3..and. charter..steps.chapter.create.

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

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

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

. manner.of.and.squeeze.to..business.monitor.In.that. process.Kaizen.root.important. controls.summary. Figure 5.requirements..on. Cost Start Data Collection at Every Operation Downstream Operations Attach information to the value stream map that shows how the process is managed. countermeasures.its.controls.3 Brown-paper mapping at a major work stream leel.the.every.context. such as management reports.causes.to.result. process. is.remaining.prioritized. any.countermeasures. improvement. or.process. contain.. ensure.continuously.toward.anticipated.improvement.a.their. inspection and data collection forms.develop.waste..countermeasures.cannot.team.state.this. will. future.. .the. in.immediately.a.future.is. to.of. a. quality reports. Ideally.over.time.benefits.implementation. team’s. including scrap and rework.improve. breakdown.move.the. of.their.process.process. or.it. high.that.for.an. percentage.identified.systematically.process.countermeasures. a. controls.In.Finally.resource. sustainability. and.based.its.to.applied...versus. Quality.easily. and any other information useful in analyzing the process. their. a. visual. maintenance reports showing machine breakdowns.be.be.implemented.148  ◾  Lean Six Sigma for the Office Start Data Collection at Every Operation Upstream Operations Start Data Collection at Every Operation Process Strength Process Weakness Need Additional Data Improvement Opportunity Functional Areas at Currently Track Metrics Related to Time.should.process.out.

workflow.of.as.a.subprocesses.characteristics. information.practice.was.other.an.used.there.team.helps.serve..characteristic.into. inspection. work.into.been.breakdowns.as.service.should.local.these.be.by.visible.But. a.isolated. on.organized. process. accurately.the.process.VSM.First.anywhere. VSM.linkages.highly...operational.The.a.created.broken.exercise.it.a. a.using.fact.the.the.data. of. to.the.how. are.operations..office.A.forms.process..this. being. shows.work. the..several..work. .to.both.process.conference.workflow.process.VSM.as...reporting.these.this.and.and.issues.been.computer. become.seldom.Eventually.process.activities.above.facilitated.up.the.the. complex.result..from.how.their.bottom.across.the.environments.and.forms.be.combination.a. of.operational.. the.completely.is.the.paper.3.of.relationships. because.a. information.As. prominently.interesting.used.rolled.in.a.to.exercise.so..area.it.or.a.repositories.easily. is.and...to.show.to... and.In.and.a.selected. several.customers.for.situations.In..and..brown-paper.team.room. VSM.team.identify.work.capture.is.exercise..that.in.process.work.to. together. This.major. operational.team’s.wall.quantified.process.helps.In.This..build. and.physically.exercise.that.operations.are.is.In.computerized.very.may.and.be.However. building.in.process.Kaizen.have.VSM.can.of.experts. clear.In.by.event.can.subject.local.to.collection.a.and.screens.interactive.small. remain..its.of.is.mentioned.materials.Second.work.earlier.. brown-paper.VSMs.and.may.by... their.hands-on.results.an.and. sequential.a..This..of. the.brown.metrics.office. depict.should.5.flow.a. teams.reports.team.done.a.not. possible.sharepoints.An.add.VSM.team..VSM.local..in.Kaizen.visually.disruption.workflow.VSM..among.advantage.. created.displayed. constructed.isolation.on.. metric. attached. relationships. manufacturing. scattered. information.the.process.Table.information.mentioned.people..VSM.organization’s.as. VSM.validate.. to.tasks.this.has.should.to.be.In.everyone..it.isolated.VSM.typical.of.project.users.included. background.documents.showing.Kaizen.see.is. VSM. a.conference. are.likely.Kaizen. is.the.are.to.VSM.information..of.team. most.source. when.addition.is.a.VSM..is.the.operational.a.as.and.as.At.relationships.who.. reports.fourth.operation.. rather.. quantitatively.identify..be..data.lists.is.always.materials..room.down.in.has.using.common.this.key.that.usually..continuous-improvement.it.poor. similar.through.to. forms.and.is.5.management.that.various.using.throughout.of.event.2.by.of.maps.for.office..These..process.. maps.are.within. process.and.this.or.manual.flow.maps.involving.communication.locations.of.suppliers..processes.of.a.Kaizen.of.once.continuous-improvement.a.accurate. a.are.that.context.ideas.operation.not.consist.sticky.the.However.teams.their.an.operational.operations. after.a.VSM. see. contrast.accessible.process..point.In. than.easily.“walked”.uses.Kaizen.can.moved. Figure.Kaizen.in. easier..a.is.easily.As.a.characteristic.usually.created.at. interrelationships.vehicle.identified.for.a.a. a..subsequent.their.such.VSM.a.posting..single.levels. gathered.a.then.notes.information-capturing.contrast.in.matter.analysis..where.maps. In. how.five.spatial.Data Collection and Analysis  ◾  149 Brown-paper exercise A..everyone. the.a.or.preponderance.a.exist.task.the..teams.charter.advantage.becomes.related. across.

long.2 2.0 7.4 $4.. metric.8 1.simplification.96 20% 15% 30% 25% 61 1.9 2.visualization.business.team. process.4 2.8 10.72 $23.6 2.The.6 13.other.15 $0.60 1.the.8 10% 1.where.0 1.few..8 1.shows.attached.workflows.performance.a.2 4.2 5% 0.a.comprehensive.9 1.8 0.2 20.problems..types.to.3 18.current. non-value-adding.process.a.quantifies.8 0.8 1.5.3 6.the.is.and.to. key.clearly.common.6 16.4 1.. help.8 1.7 1.7 0.of.7 10..for.Figure.0 4. to.4 5.critical.These.80 $19.several.9 4.3 11.8 1..team.a.5 1.a.48 $1.4 0.00 $23.be..been.will. yields.if.7 2.it.1 0.8 1.are.8 5.6 2.8 5.and.provides.70 $8.1 4.9 0.of. Figure.to..66 $2.operational.8 1.4 0.and.0 0.one. rework.process.7 0.5 1.workflows.0 3.7 374.3 1.understand.5 1.2 7.8 1.in.operations.0 2. greatest.6 3.9 19.8 2.manner. excessively.team.improvements.process.3 6.root.35 $1.50 $5.operational..9 0.8 1. loops.2 9.intent. starbursts.and.several.a.8 1.focus.on.74 $5. two.In. related.2 75.40 $13.is.0 7.8 2.8 1.2 4.groups.4.03 % Total Figure 5..5 $ 91.8 36 20% 3. performance.standardization.key.6 6.stakeholders.6 13. the.are.8 1.single. nalyzed. using. metrics. shared. for.analyze.relative.the.several.notes.8 1. a .8 1.of. information.0 30.6 1.the.it.that.6 0.3 6. performance. breakdowns.6 21.that.the.5 36. and.8 1.In.on.5 1.process.even.to.7 0.performance.30 $1.7 7.impact.goal.process.enables.workflow.77 $4.share.information.problems. Recall.the.and.that.2 20% 3.made.4 2.the.5 12.identify. these.6 3.0 3.6 7.to.0 3.8 1.4 2.process..among.6 0.0 3.5 1.their.interactive.starbursts.product..7 0.0 1.8 1.4 2.. a.local.9 1. placing.are..This.analyzed.Kaizen.groups.process. ultimate.the.8 1. Financial.just.4 product complexity analysis.7 5. and.implies. clarify.0 18..construct.55 $7.should.0 3.1 18.6 6.with.deployed.similar.1 37.4 131.50 $4.usually.usually..fact.4 3.addition.visualization..2 1.impacting.operations.60 $1. or.versus.on.is.8 33.identify.6 0.8 1.VSM.3 0.70 $4.94 $24. stakeholders.show.4 1.are. operations.9 5.40 $10.4 99% 97% 95% 99% 97% 99% 98% 95% 93% 98% 99% 96% 97% 99% 94% 99% 97% 98% 92% 94% $27. building. metrics.6 2.1 3.this. objectives.Kaizen. other.2 0.process.27 Yes No No Yes No No No No No No Yes No Yes Yes No No Yes Yes No Yes 15 Target to Eliminate Target to Eliminate Target to Eliminate Target to Eliminate Target to Eliminate 17 15 14 15 $32. map’s. times.9 27.helps.5 0.2 75.8 3.Easy.00 $30.by.in.or.the.required. that.workflow.6 35% 5.team.analysis.27 $20.3 17.within.6 100% 15.helped.2 0. A. comments.4 2.be.4 4.path. These.5..8 0.3 0.a.causes.2 4.In.bottleneck.product.0 2.common. a. key.metrics.2 0. work.5 3.08 $0.to. have.they. cycle.8 4.95 $27.VSM.may.2 1..of. team.4 0.1 14.1 0.how.problems.that.VSM. highlights.Interactive.5 1.5 12.05 $4.analyzed.is.financial.0 3.also.Operational..8 1.focus.9 0. team.8 4.4 3.to.3.example.identify.6 7.team..2 2.a.25 $3.focus.4 5.3 3.interpret.the.8 1.to.9 1.to.the.150  ◾  Lean Six Sigma for the Office Product Group (Invoice Type) Processing Time Total Operations Inspection Time Transport Time Operation Cost Setup Time Value Adding? Storage Time Yield (RTY) Delay 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 1 1 1 1 1 B C 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 D 1 1 Total Ti me Total Cost Comments 1 1 1 1 1 1 1 1 1 1 1 1 1 3 3 3 2 4 4 3 3 3 4 2 3 2 3 3 3 3 4 2 4 1.5 1.6 0.common.stakeholders.8 1.comprehensive..25 $5.6 2. are.1 4.9 1.a.9 2.on.1 1.6 7.6 26.4 13.those.future.on. .4 4.also.across.have.

will.Measuring.context.major. collect.analysis.and. along. process Characterization A..analysis. major.been.an.financial..tools.created. is:.At.to. subsequent.collection..Figure. most.... to.items.useful.In.context. data.information.during.focus.helps.one.provide.overview.objectives.operational. of.using.measuring. tools.more. sections.develop. at. population.with..the..shown.team..to.charters.necessary.will.ensure.management. statistical. efforts.their. collection.goal.As.Random.quickly..legitimate.a. systematic. will.operational.sampling. after.team’s.5.activities.strategies. team’s.the.work. relevant..process.is.process.process.workflow.tools.5.work. methods.a. .Data Collection and Analysis  ◾  151 An.simple. include.assigned.5. Methods. an. event.be.verify.Data..single. work..that.level..within..and.for.tasks.Kaizen.. Figure.must.a.of.this.audit.cluster.. improvement.methods.analysis. of.rapid.teams..successful.project.tools.future.from.examples..several.percent.this.. These.sampling.to. the.a.workflow.should. also..to. facilitate. from.advantage. significant.numerous. related.to. used.an. creation. to.a.project.charters.more. least.this.data.5.templates.metrics. a.usually. the. analysis. major.it.types.of. efficient.Figure.improvements.the. stratified.analysis. tools. a.to.aligned.. on. sampling. that. These.a. Kaizen.An..The.or. is. are.. divided.of.identify.that.to..created.5.its.to. will. offices.a.to. to.role.and.analysis.process..tasked. ollection.ways.will.a. process.would.of.be.then.for. several.manner.using.associated. describes. a.strategies.analysis. issues.yield..identifies.admitted.begins.example.analysis.and. Relative..collection.As. This.many.job.project.appropriate. in.of.as.be.collection.specific. templates.that.additional.organizational.projects. data.on.In. of. that.improvement..process.this.from.analytical.collection.identified.and.range.data.if.could. process.and. data. of.an. sampling.root..that.in.collection.of.chapter.work. method.100..and. information.an.goals.been.of. types.lists.shown.such.at.project. Also.. sampling.questions.reference.project. c .and.which..data.or. creation. templates. identify.4.that.methods.be.provide.and.goal. include.answer.example..goal.has.would.improve..ways.such. additional. three.than. presents.causes. random.data.is..they.to.of. decide. and.applied?.data.these.organizational.with.team.the.standardized.performance.for.different.an.of.discussion.an..Kaizen.example.. gathering.is.of.taking.consists.a. process.on. discussion. Finally.metric.in.of.which.process. This.that..project. The.in. process.this. workflow. tools.of. templates... statistical.However.a.be.the.events. on.a.and.selecting. major. team. be.be.level. chapter.if. based. be.sampling.Kaizen.of..process.methods.teams.has. These. there.they. and.and.several.improve.sampling.can..charters.with. usually.and.would.team’s..5.the.investigative.productivity.be.charters. enable.is. and.various.help.be.the.and.Kaizen.Figure. information.But.shown. the.charters.and. into.breakdowns.collection. a.as.easy-to-use.to.responsibility.be.. must.is. depend.with.then.characteristics.the.and. include.process.shadowing.4.question.have.A.charters.to.assignment.and.prioritized. four.However.for..in.appropriate.future.

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

of.of.project.relationships.financial.the.motions.negative.external.type.is. greatest.more.their.be.an.operations.such.collection.useful.. metrics..These. that.As.percentage.. Figure..worksheet.analysis.non-value-adding. be.7.data. if.. process.a...be.to.people.and.to...activities. operations.Data Collection and Analysis  ◾  153 Process: ___________ Date: __________ Name: ___________ Common Symbols Process Decision Delay Inspect/Measure Transport Stop Inventory Improvement Opportunity Additional Comments Figure 5.performance.created.performance.measuring.shown.example.process.the.used.also.7.such. or.operational. there.can.and.of.is.time..a. in.an. that.trends.if.should.analysis.activities.are.spatial.shown.value-adding. process.patterns.tool. distance. may. c .would.be.help.to.but.will.level.to.process.team..their. a.process.templates.shows.quantitative.work.enable.a.among.process.them. Once.to.can.exhibit.charters.then..Kaizen. collection. a.Figure.are.5.charters.to.methods..been.and.collect.show.that. time. This.from.reverse. the.additional.called..5.improvements.advantage.15.the. Ideally..materials.should.scaled.very..Kaizen.shows.operations.templates.levels..15.make.the.its. (NVA).micro. show.poor..data.equipment.while.collection.(VSM)...necessitate. sketches.detailed.to.As.an.as. layout. to..percent.modified.This.investigate..6.gathered.improvement.is.to.sketch.complete.operational.variation. accounting.total.extent. These. required.as.customers. operational..6 process analysis worksheet.worksheets.(VA).data.within.will.a.7..and.a.workflow.percent. sketch.at.in.relationships.and.shows.A.team.value-adding.be.but. information...to.of.tasks.5.workflow.of.5. describes. is.that.lower.its.process.also.especially. .not..Process.to.the.constant.team.. are.operational.a.relative.to.have.(VA).required. and.also. analysis.gathered. ontinue.quickly.the.detail.data. opportuntities.of.information.example.travel. improvement.describe.of.. map.the.initial.process. financial.Also.used. can. they.differentiate.that.acceptable.be.using.accounts. Figure.metric.simple.made. has. example.or.analysis. Figure. more.a. few.operational.metric.specific.others.analysis.possible.collection.used.quantify.Figure.those. An. an.detailed.enables.evaluating.tool.a.types.metrics.project. just.process. that.of.payable.As.over.was.time..a. simple. for.data.been.

shown.5. Inventory Efficiency (Turns) l. proofing.. that.lists.0 19. several.process.3 60.000 10.the.to.within.team.5.0 16.percent.value-adding.of.for.accounts.a.one.0 30. have.0 14.Kaizen.17. an. important. a.0 12.0 12.measurement.as.approach.7 99.specific.function.detailed. in. performance measurements (similar to Figure 3.0 10. The.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.As. are.two.is..0 22.at.be.example. schedule.or.a. either.time.of.0 19.0 24.Figure. time.3 63..whose.of.0 24.0 63.8 100. a.0 66..000 5. Excess & Inventory 15.Figure.changes.0 19.0 13.15.their.will.0 28.can..0 14.process.percentages.of. There.which.1 6575 Average 15% 26% -27% -17% -14% 42% -17% -30% -34% Figure 5.800 3.reduced.lists.0 63. data.the.of.0 22. the.0 20.5.4).“frequent.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.be.advantage.5 81.9 30. Forecast Accuracy n.tools.to. Rework% 5. as.This.1 1.0 19. is.0 50.0 73.a.but. both.performance.in.data.identify.process.0 18.process.0 15.8 1.0 55.shows.0 64. projects.0 20..0 1.shown.0 16.1 75.8.such.in.0 13.several..0 16.level.additional.chapter.0 74.0 25.0 19.mistake.similar.8.application.0 20.0 2. On-Time Supplier Delivery m.0 18.5.standardization.0 15. of.. Annualized Savings h.000 5.red-flag.audit.0 18.implies.to.Figure.template.from.As. Data Accuracy s.0 20.0 15.we. operational.2 1.0 19.in.0 30.this.the.improvements.0 24. using.0 2.additional. from.red-flag. be.called.and.0 20.was. First Pass Yield (Rolled Throughput Yield-RTY) j.those.analysis. Percentage Scheduled Jobs Missed i. initial.scrap. Profit/ Loss k. shown.that. useful.the.0 23. 85.The.increases.the.in. event. Figure.000 10. information.environments.depend.a.000 5.5. As.1 62.5.0 1.an.prioritize.be. Lead Time o.0 2.several. Total Process Workflow Cycle Time b.a.0 11.000 10.6 27.0 100.0 16.0 25.9 17.An.contained.and.2 1.can.0 15.. increased.job.2 26.0 14. Scrap% 4.7.0 17.0 20.classifications.same.0 26.any.0 21.0 21. Inventory (Units in Queue) 9. collection.50 420 Date: July Auditor: Joe Takt Time: 8.of.9 14. or.issues.a..9 72.simplification. Downtime% 6. Returned Goods Expense/ Incidents g.4 58. Material Availability t. and.efforts.0 27.categories. to.3. (NVA).8.This.office.is.of. Floor Area Additional Metrics (Depending on Industry or Function) a...0 28.be.analysis.conditions.Figure.000 16.000 10.1 1.in.Figure.to.1 78.1 1. Overdue Backlogs r.will.commonly.0 17.may.1 24.collection.7 85.rework.0 14.7.Kaizen.a.137..list.. been.that.0 72.0 60.improved.0 17.process.initial. because.analytical.in. because.0 18.audit.0 29. is.0 5.0 8. using.Lean..7.0 70.5.good.in.issues. an.0 68.0 33.a.0 2.0 16.0 29.industry.template.time.000 3.0 16.of.0 24.office.This.more. impact.0 13.the.0 25.0 9.000 5.the. other. .0 62. Setup Time (Minutes) 8.Figure.5. shown.a.team.value-adding.000 18.0 18.Figure.methods.payable. that. Capacity (Units/Time) 7.15.advanced.75 50 $1.0 28. a.0 16.that. methods.environments. information.0 13. quality. non-value-adding. Unplanned Orders p.increases.0 55.order.other.of.could.through.to.2 1. through.0 18..0 27.800 3. Value Adding % 2.percentage.3 92.metric.to.. perspective.7 4.done.a.other.4 31.5 87.percent.0 25.can.number.time.combination.Later. Number Employee Suggestions e.0 69.example. example.including.000 10.0 54.(VA).VA..0 23.job.”. to.0 15. follow-up.. Production Rate (Units/Time) or Operation Cycle Time 3.0 17.in.and.1 76.classic.0 21.0 55.on.negatively.0 21.4 30.be.5 24. Number of Customer Complaints d.0 63. Schedule Changes q.0 10.0 1.0 1.also.7.shows. Number of Problem-Solving Teams c.provide.changes. immediately. condition.in.metrics. Warranty Expense/ Incidents f.7 1. baseline.projects.7.total.several..0 21.use.using.5 1.000 5.of.0 17.the.0 52.a.3 1.800 Week 9 Week 1 Week 2 Week 3 Week 4 17.how.source.possible.0 65..9 56.0 16.demonstrate.800 3. Kaizen. it.percent.

be.a.00 $0. every. . well.75 $10.. metrics.9.of.25 $15. elimination. Had to call supplier several times. the.50 $79.issues.and.team.of. In. useful.materials.00 $22. Jobs required three signatures.activities.00 $13.50 $535.00 $52.50 $21. In.within. Employees did not have information to perform job..error. down.Kaizen.time.teams.or..drill.00 $15.will. Jobs have been pending for weeks.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.root.template. and.The.the. analyze.to.miscommunication.due. Employees confused as to work task.(VA).this.causes.Figure.may.be. Jobs for these suppliers are run once per year. Job was rushed due to poor planning.75 Date: July 50 Auditor: Joe $1.as.continues..50 $0. broken.due.schedule. at.team.a.situations..8.50 $0.operational.into.causes. important.a. conditions.50 $0.at.its. its.. These.as.of.increase. New employee not familiar with tasks.a.level.in. root. Figure.operations.improvement.myriad.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.a.8 process audit worksheet.50 Takt Time: 8. of. Jobs required several sequential operations.expediting. The.requests.changes.will.. be.to.increase.of.will. number.8.used.occur.5.process.50 $9.accounts. example. other.also.cost.5.be.to.occurrence.percentage.serve. shown. Figure 5.This.lead.will.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.its.may.sources.of.within. increase.their.issues.to. shown.00 $75.Figure.00 $19.either.the..the..waste. into.should.or.process. Work tasks that can be eliminated form the process.00 $52.of. is.of.workflow.office.shown. reasons.context.also.can.can..the.time.for.value-adding.for.analyze. in. spent.manufacturing.and.the.. breakdowns.occur. machine.commonly.5 10. Lack of clarity regarding start of invoice. time.changes.excellent.137. the.factors..50 $0.template. Jobs had to be walked to another department.within.a. As.. Work procedures can be made more efficient.process.shown.processes.the.the.process.50 $0.5. or.the.In. operation.time. 5 3 2 4 4 2 1 0 0 10 2 15 0 10 10 0 0 10 2 3 0 4 0 5 92 17.a.template. red-flag.due.00 $30. to. modified.investigate.the.to.lack.causes.greater.00 $0.00 $10.down.00 $7.root.“standard..wasted.reduce..analysis”.time.customer.50 47% Jobs could not be completed due to incomplete information.a.and.of.The..as.then. issues.00 $75.Kaizen. other.projects.5..the.workflow. also.Figure.probability.reduce. payable. and.in.lead.9.and.in.these.operations.eliminate. lower-level. Jobs were released at the end of the shift.

the.the. Kaizen. 357.be.time.75 50 $1..team.10. time.9..357.5. shown.2.jobs.and.may.several.the.useful.Recall.within.percent.information.a.which.baseline. for.9 Waste analysis by operation. more..be.in.a..These..waste. identify.categories.ensure.reflective.5% 12.operations.payable.a.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.level.the.percent.down.waiting.accounts. process.9.in.represents.part.3.are. time..in.a. to. from.To.the. non-value-adding.be.non-value-adding.percent.85.45. the. of..event.can.process.. one.137.time.one.template.good.very.broken.performance.analysis”. major.1. within. 25.was.represents.accounts.of.Figure.are.the.event.across.a. be.3% 10.focus.lower. of.time.the.wasted. the..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.a.these.focus.to. or.components.longer-term.of.is.Kaizen.place.as.estimated.also.percentages.3% 45.waiting.just.similar.Figure. should.9% 11...summarize. reasons.total.. long.our.example.also.issue.the.shows.workflow.5.on.if.“summary.4% Figure 5.In.It.data.approximately.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.at.Perhaps..to.of.minutes.estimate.or.total.performance. the.This.Figure.gather..of.either. cycle.of.already.2% 16 44 37 4.non-value-adding.this.which.to.5.total. ..for.analysis.50 420 Time Due to Defects Date: July Auditor: Joe Takt Time: 8.minutes.how.8. time.Figure.As.priority.in.operations.discussion.of.focus.a.5.an.equated. the.9..time.time.relative.the.process.would.that.first.of.job.the.process..to.

should.working. In.working.137. her.may.are.As.workers.employee.is.over.characterized.activity.of.Figure.may.several.repeatable.is. complex.at. not.days.Kaizen.required.show.may.not. to.those.by. 5.using.in..process.situations. major.be.0% 0 0 0 0 0 0 0 0 Figure 5.work.process.data.or.9% 40 11.the.is.to.with.within.and.days.only..to.cause.improvement.computer. Job.job.percentages.jobs.templates.be. adapted.both.analyses.which.commonly.9.context.. It..comment.these.method.4% 0 357 100. is. to.Using.by.collection.attending.the.percentages.Quantitative.capture.work.tasks.do.that.make.managers.flow.job..of.an.systems.standardized..actions. number.often.2% 5 1.8..the.at.beginning.just.work.and.root. process. their.an.5% 44 12.event.4% 16 4.shadowing”.Typical... complex.calculated.Most. an.Kaizen.within.assessment.In.more.of..by.work.20.useful.that.large.facilitates.work.it.. method.employee.noted. that.proximity.is. collection.discussed.. more.of.time.require.when.several.places. and.the.a.example.is.extends.example. spent.not.a.information.very. .“job.75 50 $1..method.the. description.meetings. the.structured..industries. in..to...associated.used..other.flow. tasks.directly.final.this.and.and.of.occur.with.template. or.a.The.available.time.3% 37 10.NVA.useful.time.is.analyst.this.This..shown.professionals.operational.an.where. be.is.a. is.However.are.levels. the.50 420 Date: July Auditor: Joe Takt Time: 8.records.hours. except.in.be..inordinate.for.changes.As.are. job. information.that.service.collection.work.5...other.of.possible.methodology. tasks.tasks.employee.time.over..analysis..useful.with.11.not.team..use.an.and. Figures. templates..than.15-minute.operational.effective. easily. in.is. and.result. another.which.analyze.procedural.and. similar.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.a.job.used. useful.work.extensive.analyze. or.who.because.of.shadowing.an.during.shadowing. job.this..It.professionals.useful.repetitively.will.of.components.have.In.it.is.major.examples.by.observer. information.time.that.are.office.such.tasks.the.processes.time.on.job. work. related.a. shadowing.event.from. shown.Typically.10 Summary of waste analysis for seeral jobs.simple..to.sequences...diverse. is.an.involving.because.3% 164 45...or.manufacturing. also.in. directly.are. his.meetings. spent.may.amount.shadowing. performing.complicated..analysis.on.nonvalue-adding.5.activities.increments.shadowing.of.work.and..and.improve.Then. payable.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.components. data.an.an. include.greater..it. associated. reports.the.time. to.or.information.tasks.found.a.to.standardized. it. spends.their.at.work.electronically. more.the.have.in.tasks.a.words.As.but.data.office.(NVA).an.process.as..track.heavy..linked.

method.is.12.shots. possible.spaghetti.shows. efficiently.common. materials. that.used.data.or.of.template..in..by.this.. should.to. to.also.cubicles.example.collecting.tasks.137.material. high. degree.However.is.movement..operations. minimizing. co-locate. teams.4 Minutes/Unit (50 units in 420 Minutes) Figure 5.158  ◾  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.is.in.other. A.spatial..50 420 Observations Date: July Auditor: Joe Takt Time: 8.spaghetti.daily. the.forth.employees. common.between.work.in.it.data.and..of.be.. practice..move.diagram.shown.is.examples.analyst.work.movement.possible.flows.apparent.can.is.change.a.to. A.or. diagram.collection.work.reports.the.computer.office.over. to.analysis.their.and.In.Figure..extent.an.it.and.office.or.manufacturing.method.It..may.tools.quantitative.. interact.during.of.easily..The. greatest.known.also.operations.of. a.collect. spaghetti.office.and.11 Job shadowing worksheet.stations. by.of.diagram.data.tasks.rearrange.. information.a.information. sequence.between.relationships.... work. it.well.an.as.But.75 50 $1. .the. and. addition.a. to.screen.result. a.concept.templates. various.adapted.course.collection. that.used.work.the.environment.an.their. to. be.back.5.could.Using.information.templates. provided.this.

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.

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

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

a.the.of. process. of.Six.will.another.An.of.operating.the.share.highest..the.The.toward.using.is. a.show.complexity.the.level.In.team.the.process.outliers.process.should.points.data.Highly. clearly..chart.are.from.categories.be.compare.common.enables. data.total. bars.to.problem.the. the.countermeasures.how. breakdowns.broken.(NVA).bars..being. pareto Chart A..between. chart.an.root.for.extend.is.breakdowns.smooth..called.the.In.variables.be.empirical.categories.several.Kaizen.This.frequency.is.population. analysis.be.used.dataset. data..data.as.really.just.in. Pareto.tendency.histogram.. occurrence.by.symmetrical.data. second.work”.example..variation.if.In.lowers.their.very.in.. of.right.as.frequency. a .for. category.is.A.versus.breakdowns.As.represented.issues.from.next. the.a.Pareto.activities.the. the.example.outliers.this.symmetrical.to..as. scale.equal.8.distributions..in.the.team. or.discussed. highest.the.Pareto.using..dispersion.continuous.also.of. bars.Figure.their.or.to.improvement.comparison.process.by..the.process.are.through.“belt”. down.step.data.created. the.histograms.Kaizen.5.that.analytical.be.16..classes.not.As.A.A. order.a.or.can.an..the.have.actually.discrete.useful.the.be.this.is.are.5..just.to.as.from.management..methodology. in.may.reasons. their.level.the. this.working. its.summary. empirical.an. shows.width.with. category.correspond.also.center.the. the.. have.useful.to.and.direction.after.the. In.be.underlying.is.15.of.process. in.third.associated...the.improvement.They.168  ◾  Lean Six Sigma for the Office Histograms.is.in. as.charts. as.In. shown.process.before.of...advantage.are.a.of.In.then.analyzing.for.5.is.data. useful. the.or.communicating.that.displaying.may.batching.skew....occurrence.of.sampled.Pareto.they.data.process.that.were. “non-value-adding.very. use.how.could.first.the.shown.focusing.for.that. The. the.be.Pareto.curve.to.allocated. is.analyzed.statistics.for.several.rectangular.operates.context.their..center.its.into. is.could. highest.their.people. Figure.number.contrast.and.the.to.example.investigating.uses.skewed.that.useful.other.would.of.far.a.that.one.to.Figure.can. frequency.metrics.. usually.outlier. decreasing.verify.describe.distributions.left.levels..total.approximately.are.5.or.data.the.Kaizen. ctivities”. frequency.of. Figure.team.two.project.a..to.has.causes.or.The.a.root.of.of.the.well.rectangular.as.on.the. .could. an.lower.level..reasons. of. analysis.the.approximation.a.Summary.An. to.as. time. number. non-value-adding..of.of.of.in.by.histogram.problems.was.highest.Sigma.“batch.various..the.as.comparing.and. representative. is.histograms.lowest.16.away.contain.five-why.charts.with. analyze..levels.the.data.end.set.the.the.perhaps. As.distribution. example..several.or.normal.priority.value.charts.to..well....process. shown.second.to. empirical.causes.incorrectly. rectangular.pattern.count.will.central.would.measured.areas. original. histogram. display.clues. Because. clues..process.a.causes.up.also.summary. by.and.lead.occurrence..work.data. statistics.root.graphically..the.

which.location. is.5.a.”. Several. in.asterisk.is.various.are.same.values. of.the..that.can. analytical.and.25th.percent.percentile.a.in..Figure.point. in.data.Figure. this.statistical.50th.of..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. tool.“waiting”.. .a. range.category.“lost.9).displayed.the.sample.sample.to.values.percentile.a.a.each.of. Finally.In.a. Box plot The.25th. minimum.percentile..of.higher.categories.by.which.has.values.central.example.also.see.that.any.in..a.. box..of.can.at.5.the.of.the.applied.time.a.75th.maximum. higher.A. which.of.well. plots.and.include.a.are.median.16 pareto chart (data from Figure 5.of.broken.represents.values.the. comparative.A.having.the.provides. set.at.the.the.to.5.were.marked. shown. manner.sample.sample.analytical. a.is.analysis.Figure.set.“excess.a.the.data. below.the.as.continuous. value.plots.below.shown..75.continuous. displayed.25.of.variable. and.both.that.of. very.as.of.....other.using.time.example.point. minus.the.percent.9. In.set.the.discrete.data..“waiting”.advanced.variables.percentile. the.several. maximum.graph.plot.can.Box.be. and.percent. the.a.an..data. the.down..relative..into.are.in.formula.from. useful.time”.categories.other.rest.methods.below.as.of. plot.it. box.above..percent.the.a. calculated.sample.a..information.inventory.an.process.50.category.median..graph.be. the.relative.a. and. A..in.shows.the. plot.a.percentile.are.point.variation.tool.minimum.dispersion.than. also.in..are.. But.17.points.is. more.data.type.the.shown.we. scale.lost. An. shown..say. box. Figure.box. are.as.17.data.outliers.is..the.75th.median.outlier.also.percentile.Also. is.50.or.The.the.. in.50th.point.We. which.are.at.represented.calculated.common.that. as. be. can.In.and.that.dispersion.is.5.17..this. has.from.which. data.the.the.These.to.see.may.is. another. in.provides.additional.on.different.analysis.

we.the. regression.between. W ai tin g .construct.that.should.significance.and.the.less.17 Box plot (data from Figure 5. its..two.and.relationship.available. “capacity.The.between.shown.a.plots.Figure. graph.used.when. more. graph.the.the. against.capacity.19..noted.shows.shown.the.shown. to...statistical.to.provide.that.variables.continuous.production.two.graph.a.decreased.easy-to-understand.the. time Series graph A.continuous.see..graph.review.to.Figure. linear.example.shown.statistics.on.Minitab.scatter.as.5.Figure.the.to.5..several.from. sequence.next.fact. simple.against.in.see.the. regression.scatter.variables. provides.example.In.taken.is.can.to.5.other..in.appear. plot.from.in.shows.5.in.scatter.rate”.percentage.analytical.”.plotted.9).that.production. A.than.be. continuous.7.relationship.a.data.them.the.the.percentage.rework.It. level.that. variables. continuous.codes.same. that.rework.was.and.of.. Scatter plot A.plots.. a.the.rate.increases.or.qualitative..up.taken. construct.7.they.data.showing. a.each.their.their.and.The.of.did.tool.decrease.A.5.plot. model.Figure.we. Figure.an.plot.strength. variables. compares.was.simple.two.used. model.developing..shown.5.18.measure. series.from.capacity.is.but.the.the.increasing.in. time-ordered.A. time.relative.18.be.relationships.is.170  ◾  Lean Six Sigma for the Office 16 14 Minutes Lost 12 10 8 6 4 2 0 Box Plot of Reasons for Lost Time n Ex ce ss Tr Pr av od el uc tio n In effi ci en Ti m cy eD ue to D ef ec ts nv en to ry en t ov em du ct io Ex ce ss I sM Ex ce s Ex ce s sP ro Reason Figure 5.Figure.5.7. using.“production.quantitative.color..example.in.increase.19.In.that. rate.as. variable.time.Figure.

19 time series graph (data from Figure 5.18 Scatter plot (data from Figure 5.Data Collection and Analysis  ◾  171 Scatter Plot of Production Rate and Capacity Versus Rework Percentage 100 90 Units/Shift 80 70 60 50 15 20 25 30 Rework Percentage 35 Variable 2. Capacity (Units/Time) Time Figure 5. Production Rate (Units/Shift) 6. . Capacity (Units/Shift) Figure 5. Production Rate (Units/Time) 6. 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 2.7).7).

5 3.drawn. a.6. detail. distribution..and.time-ordered.rule. .plan.2.but.more.8.description..percent.complicated.series.information.is.their.at.±3.A.the.elementary.sample.being.points. step. its.being. is..20.3. of.of. control.approximately. should.samples. total. process.the.the.central. lower.2.will.upper.around.discussed.readings.to.control.is.several.values.time.sampling.0 1 3 5 7 9 11 Observation 13 15 17 19 MR = 2. shown. The.then.three.of.in.calculated. constructing.from. Individual Moving Range Chart for Processing Time (Minutes) UCL = 9.+.5.divided..from.an.in.additional.lower.or.76 10 Minutes 5 0 1 3 5 7 9 11 Observation 13 15 17 19 LCL = –1.improvements.3.of.are.. atterns. distribution..to. chart.to. how.be.summing.of.878 4.this.by.mean.limits. first. p .the.variable. Figure.calculated.statistically..calculate.example.outliers.data.plotted.control.be. (normal.complementary.the.end.if.As. A. calculated.will.variable.of.a.upper.=.Chapter.perspective..number.at.an.by.would.and.1.As.beyond.and.upper.. and.process.A.mean.it. from.of.variable..sample.suggested.the.an.the.are.7). a. determining.contained.0 1.84 6..+.0 Minutes UCL = 6. in..73.and.that. is. have..as.limits.be..would.level.which.plotted.consisted.in.this. symmetrical.control.charts. a.and.limits.and.control.samples..105 LCL = 0 Figure 5.of..in.and.the.the.location..a.expected.the.the. from.dividing.standard.data.over.within.be.a.different.types.2.36 _ X = 3.enables. sample.99.made.by. the.But.special.5 0.the. that.the.at. continuous.a.plot. not.deviations.the.be.3.data. in. control.charts.used.limits.172  ◾  Lean Six Sigma for the Office process. is.or.the.all. nonrandom.20 Control charts (data from Figure 5.time..visualization. statistical.is.series.limits.in.control. in.is. process.process.more..it.are.time.histogram.Using. Control Charts Control.of.chapter.1.or.A.were.any.that.to.example.lower.calculated..collect. concept..mean.mean.

initial.mean.as.they.over.not.Kaizen.samples.construct.process.other.if.assumes.formally.pattern). or. of.samples. set.As.be.The.the.on....sampling.will.the.this. control.tools..completed.variable.process. nonrandom.for..nonrandom..to.them.a.does.a. ranges.be.to..as.are.reference.used.addition.and.later.that.identifies..5. charts. across.described.collect. that.same. deviations.words.date..of.that. Then.time-ordered.a.assumed. charts.combined.chart..in.most. by.compare..Figure.Chapter.either.during.may.and.individual.available.range..the. s .chapters.less.its.that.73.. limits.to..charter. an..subgroup.be.are.remain. sample.reference.as.the. a.or.Kaizen.is..subgrouped.Constructing.control.improvement.taken.99.chart.the.that.chart.baseline.additional.charts. subgroups.p-charts. In.variables.Kaizen. a.sample.using.The.size.the.as.the.distributed. of.been.in.approximately.or.recorded.is.Minitab.developed.data.counted..Analysis. values. require.should. control.based.mean.control.or.from..Kaizen.±3. patterns.mean..by. other.a..activities.of.r-chart.have.to.also.X-bar.fail.is.various. to.of.control.from.improvement. during.a.charts.causes.distribution.occur.100%.can.values.calculated.or..by.an. be.these. subgroup.from.standard.subgroup.used.can.and.control..are.described.in..the.X-bar. from. improvement.±3.team. analysis.normal.Data Collection and Analysis  ◾  173 assumption).chart.beyond. Also.period.process.investigated.Two.should.from.the. a.at.root.99.time.methods.as. all.plotted.remains.within. variation. discussion.greater.u-charts. all.of.is.patterns.at.is..software..the.they..future.a.range.or.that.and.data. the.or. divided.each...on.of.In.these.samples. is.upper.sample.the.and.minimum. 0.then. cause.We.sample. subgroup.and.and.limits. which.no.activities.words.. looking.based. their.as. subgroups.. this.an..completed..should.Figure.intervals. common.on.example.shown.of.mentioned.an.of.complete.the.standard.time.some.of.subgroup.a.20.lower.percent.problem.percent.25.other.variable.In. chart.our.to.will.is.or.this.to. In.These.shown.control.subgroup.if. an.and..updated.various.assumption.The.be.are. range.an. patterns. consists.at.of.is.subsequent..such.analyze. will. Recall.a.Poisson.of..occur.samples.previous.subgrouping.n.as.around.mean.worksheet.than. that. Once.will.some.to.Many.It.that.averages.as.used. assignable.of.taken.assumption.individual. cause.is.be.improvement.distribution.and. the.discussed.analysis.improvements.In.limits.pass.deviations.that. the.However.must.is.sizes. or. summary.have.of.chart.continuous.there.process.range..be.chart.ideas. number.ranges..opposed.are.longer.as.21.a..outlier. a. team.is. variation.charts.the.that.mean.variable. outliers. ubgroups.being. (outliers.average.chart.binomial.in.used.to.distribution.shift.over.charted.may. . observations.control.a.a.a.control. probability.a.charts.the.In.that.on.analyze.is.reflect.mean.this.was.exceed.many.the.types.applications. and.control.the.73%.its.np-charts.20.a. pattern).requires..X-bar. the. forming.to.control.c-charts.a.8. identifies.schedule. special.However.and.collected..chart.be.event’s..are. their.equal.is.that.control.27.a. of.initial.team.time.are.are. from. In.chart.a.project.be.plotted.their..if..their.range.–.the. mean.. other.combined.in.to. requires.the.recent.for.control. The.opportunity.then.nonrandom.that.a. for.also.chart.This.. average. time...usually.time.mean. differentiate.symmetrically.workshop. (no..expand.called..control.5.used.

identified. relationship.5.high. using. a.improvements.modified.number.that. Ys.large. used. cause-and-effect.10. rates.scale.22.several.(C&E).a.example.correlation. If.10..5..the. done..they. to. C&E.or. process. business.has. is.whereas.implies.data.to. to.degree.The.In. Figure..is.implies. a.collection.Figure. variables. .. prioritize.and.or. input.to. shows..project. can.relative.1..then.21 improement opportunity worksheet. benefits.been.22.between. their..a.1.current.and. be.in.their.key..the.benefit.174  ◾  Lean Six Sigma for the Office Kaizen Opportunity Worksheet: Date: Process Workflow: Process Owner: Team Leader: Team Members: Kaizen Opportunity: Project Number: Problem Statement: Root Causes: Required Actions: Current Performance: Future Performance: Anticipated Benefits: Figure 5.using. projects. be. prioritized. to.. how.prioritization.of.matrix.projects.one.for. a. or. Normally.a.need.will.the. matrix.between.correlation..financial.a.A.improvements..activities.shown. outputs. prioritization. Xs. to.. relative.matrix.no. or. prioritize.process. relative.operational. or.metrics.process. to.

correlation.of.collected.a.a. VA.highest.see.(8.in.Kaizen.people.could.this.example.first.calculated.by. of..manufacturing.22.discussed.results.5)..×.5.analyze.collected.to.important.of.+.relative.the.rating.to.we.shadowing.the.rating.project.in.10).environments.7.collection.importance.=. several.rating.business.implies.A.use. operations.also.as.several.project.the.a.that.would.to.made.efficient.in.in.as.others.second.as.between.have.summary.be.completed.is.are. need.for.….10.that.a. method.activities.Job.be.the.and.in.machines.10).manner..event’s.many.This.complexity.tasks.if.or.(7.is.analysis.useful.the.In.analyzing.(8.and. shadowing.office.professionals.8). shown.production.example.benefits.is.team. +.methods.we.In.+.to.B.strategies.well..×.and.by.to.and.importance.Project.complicated.and.presented.the.component.enable.it.metrics.in.weighted.customers. executed.data.consisting.overall.work.was.critical.represented.been.schedule.that.is.high.shown.such.office.5.improvement.total.chapter.1.associated.rate.the.×.exists.with.of.that.also.that.correct.implies. .and.1.years.Figure..be.Because..tools.×.+.B.data.external.we.process..to.environments. A.within..as..has. manufacturing.of..important.information.collection.as.methods.we.of..begins.Table.and.rating.see.and.collection.percent.scale.In.very.in.used. are.10.be.the.The..internal.an.has.. of..the. example: Analyzing Job Shadowing data In. an..22 C&e matrix—prioritizing projects.520.Project.data.low.Job.B.tools. data.Data Collection and Analysis  ◾  175 Rating of Importance to Customer 10 1 10 2 8 3 8 4 Rework% 8 5 Downtime% 7 6 6 7 Setup Time 7 8 5 9 Floor Area Production Rate Scrap% Sequence Inventory Capacity Project VA% Total 520 509 508 471 447 439 436 423 339 318 2 6 10 8 3 9 5 1 4 7 Project B Project F Project J Project H Project C Project I Project E Project A Project D Project G Total 7 6 10 8 8 9 5 6 4 7 8 8 2 6 6 7 9 3 3 4 8 10 8 5 3 3 0 7 5 2 7 6 9 8 8 8 5 6 9 7 10 7 7 5 9 4 6 5 8 1 10 8 8 5 6 6 9 8 7 4 10 5 10 7 10 9 10 9 8 0 7 5 10 0 4 5 7 2 1 8 10 9 8 9 7 10 6 6 9 700 560 408 584 496 497 468 287 410 Figure 5.an.(8..because.

new.As.on.is.this.which..the.work.Figure.it.(VA).between.be.in.percent.total..simple.summarize.relationships.such.employee’s.time.as.to.process.classified..used.a.VA. percent.percentages.receivable.minutes.simple.it.Also.559.the.can.an.23.that..useful..5.can.of.176  ◾  Lean Six Sigma for the Office table 5.as.example.in.several..plot.durations.have.or.In.working.the.meaning.labeled.non-value-adding.the.statistics.takes.elements.The..time.value.some. example. seen.is.hours.when.work.shadowing.an.to.spent. as.time.recorded.This.shadowing..7 example—Analyzing data Collected from Job Shadowing Activity E-mail E-mail E-mail E-mail E-mail Meeting Report E-mail Report Meeting Phone Phone Meeting Meeting Phone Meeting Phone Phone Meeting Phone Meeting Phone Phone Total Total (Hours) Time 5 4 3 8 6 30 60 5 60 60 20 10 45 30 24 45 27 12 30 5 20 16 34 559 9.32 Value NVA VA NVA NVA NVA NVA NVA VA VA NVA VA NVA NVA NVA NVA NVA VA NVA VA NVA VA VA VA from...of.Also. analytical.total.such.of.tools.work..day’s..time.is. to.one.or.Figure.as.shown.it.show.of. using.47.(NVA).shown.of.the.23.that.39.in.value-adding.data.tasks.been.be.meetings.32.accounts.simple.9.add..be.5. .data.data..and.is.seen.box.are.

and.shows. However. to.statistical.displayed.5. management.contained. reduction.by.tools.of.the. that. contains. a.could.most.do.problem.high.how.5. should.Overall..useful. It. with.Data Collection and Analysis  ◾  177 Box Plot of Time versus Transaction Type 60 50 Time in Minutes 40 30 20 10 0 Classification Type NVA VA Email NVA VA Meeting NVA VA Phone NVA VA Report Sum of Time Classification Type NVA VA E-mail 22 Meeting 210 Phone 51 Report 60 Grand Total 343 Percentage 61% 9 50 97 60 216 39% Grand Total Percentage 31 6% 260 47% 148 26% 120 21% 559 Figure 5.5. of.Figure. may.time.in.not..information.abnormally.be.to. in. example: inentory Analysis and reduction Figure. more.an.the.has.analysis.shown.work..applied..information. NVA.them. would.as. Six..the.and.Sigma.approach.do. situations.In.a. standard.. Reducing. methods.summary.to.more. be.be.work.tools.team.simple.meetings. time.Kaizen. and.improve. organized..needed..24. time. improvement.the.make.some. which. NVA.advantage.the..of.The.and. the.be. decision. methods. noted.example.24.23 Analysis of job shadowing data.or.61. inventory.analytical..Six.that. in. methods.can.is.is. in.root.its.methods.24. conjunction.such.efficient.be.using. Lean.with.in.communication.Sigma.aids.specific.causes. Lean.that. useful.the.more.a.and. are.management.and. .that.percent.for. to.employee. investment.extra.. plot.themselves. provide.a.an.eliminated.lend.of.box.useful.in.shadowing.Perhaps. percentage. inventory.format.employee’s.inventory.others. components.Figure.NVA.making.can.of.to. approach.

of.a. phases. been. turns ratio. two... the.team.control. is.levels.process.develops.24 example: inentory analysis and reduction.define.example.activities.vary.. to. impacting.analysis.DMAIC.a. other.5.These.tools.and. phases.metrics.5.problem....problem. Six. Figure.178  ◾  Lean Six Sigma for the Office Define -Problem statement -Project objective -Process baseline -High level map Inventory investment increased from 5% to 10% of cost-ofgoods-sold (COGS) and inventory turns have decreased from 20 to 10 in the past 12 months.collection.how.baselines. reasons. approach.a.of.project. team. remaining.statement.this.. and. is.noted.to.been.evident.should.major.project.has. The. DMAIC.key.in.an. sequential. project’s.objective.having.structured. to.deliverables. problem.well. inventory. a. the.established.established. are.used.of.. deliverables.newly.process..four. Table. the.output. and..a..example.established.to. improve..management.example.As. Sigma. in.the.and... control.to.a.makes. shows.a. collects.order.relative.These. Figure 5.in.. In.the.performance.project. baseline.investment. have.on.next. the. of.relationship.maintain. Analyze Improve Control -Control plan -Mistake proofing -Work instructions -Training plan -Verified benefits -Selection of key -Final solution -Pilot studies process input variables (KPIVs) -Benefit analysis using root cause analysis.in.inventory. The. to eliminate the root causes found to contribute to high investment and low inventory turns.phases:. goal.” which has a turns ratio of just 10 and an inventory percentage of 10% of COGS. deliverables. are.identify.these...five.is. related.analyze. issues.reflected.Once.root. output. Measure -Measurement -Capability -Benefit verification Verify inventory investment and turns ratios using cycle counting reports and conduct audits of product group “XYZ.inventory. statement.variables.improvements.decreasing.analytical.its.of. analyze.given.by.phase.this. objective.of.” Develop a baseline metric charts of inventory investment.through. the.Finally. Sigma.baselines.an.types. deliverables. and. first.. or. that.its.systems. variables.inputs. high-level..causes.. variables.5.outputs.25. information.As... Below.their. a.Six. phase. service level and project goals by month.an. major.be. Ensure solutions Develop countermeasures are effective over time.specific. and.measuring.issues.analysis. four.define.their.. The.on..shown. comments.a. of..the. the. shown.measure.data.according. each.phase.in.is. process..depending. (DMAIC). . Use basic quality tools and methods to determine the root causes for high investment and low inventory turns.then. performance.impact. process. negatively. listed.have..organized.Sigma.of. impact. been.problem.performance.. the. may. map.between. major.it.the. It..once. Six.that.are. investment.. The project will focus on product group “XYZ.to.defining.or. performance. methodology.first.is.its.

25 high inentory inestment—first leel.Reason (Issue) 134 36 14 9 9 8 210 $10.000 5 100% $1.100 $171.000 64% 17% 7% 4% 4% 4% $638.900 $38.000.400 $66.000 $2.000 $1.000.700 $42.100 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 5.000.000. .900 $42.

in..26.analysis. 64.5.into.investment.000.Pareto.A.of. percent.would.28.weeks.of.Figure.an.. include.It.be.deliveries.late.inventory.level.six.5.. schedule.but.the.000.missing.the.that.using. unknown..project.not.team. and.be.too.6 10 7. be..2 100.magnitude.associated.orders..data.deliveries..percent.solution. overall..there.reduce.several. $1.=.This.is.and.is.same.late.shows..lot. Figure.for. then.investment.reduction.issues.schedule. inaccurate.deliveries.decrease.$518. shows.7 94.81.000.orders”.investigation. orders”..materials.The.could.“customer.Pareto.analysis.analysis.What. 64%.cost.with.reasons.or.Kaizen.on.percent.complicated. an.issue.increase..of.000.can.of... would.29.orders.of.This.of.that.to.shows.identified.shown.ease.000.completely. $2.next-level.cause. these.. Percent .with. $1.their..the. orders.it.Pareto.approximately. the.inventory.that.depending.with.000. issue.projects.$2..root.000.51.this.investment.in. represents.×.5.graphically.of..issues.applied..is.to. deliveries.an.which.are.the.from.000.to.also..27.lower-level.would.a..×.if.the.5.analysis.At.all.Figure.should..all.represents.inventory.are.or.this.investment.$1.issue.days. investment. or.an.In.then.as.percent.5.26 major reasons for canceled orders.50.of.orders.quality.the.canceled.6 80.calculated.as.1 9 6..root.and.8 7 5.canceled.be.variation.root.appear.5 88.alternative.several.from.51.represent.the.issue. issue.any.cause.is.large..could.notified”. the.elimination.associated.inventory.down.But.as.deliveries.the.improve.analysis.relative.investigate.level.if.broken.to.to.inventory.also.to.Based.000.be.81%.000.down.late.entire.problem. of. inventory.an.changes...10.future.of.third. missed.team..These.180  ◾  Lean Six Sigma for the Office Pareto Chart of Root Causes for Canceled Order 100 80 60 40 20 ry e iss d sc u ed le u t ra es u ed le U nk wn no 140 120 100 Count 80 60 40 20 0 Root Causes La te de 0 e liv h ch M a In cc Count Percent Cum % 108 80..late.to.cause. “canceled. are.continues.and.is.100.on.a.$1.investment.or.sizes.separate.a. schedules.eliminated. of.separate.canceled.turns.8%. reasons.Kaizen.requires.associated.investment. eliminated.8.“canceled.and.this.problem.. inventory.Figure.If.chart. late.analysis.0 Figure 5.the.demand. of.then.problems.implies.000.a.the.000.these...issues.canceled.

337 A1 A2 A3 A4 Count Percentange Estimated Impact** Project Inaccurate schedule Late delivery Missed Schedule Unknown Total $638.164 134 100% $638.Root Cause (Canceled Orders) 9 108 10 7 7% 81% 7% 5% $42.27 high inentory inestment—second leel. .624 $33.341 $47.164 Inventory Investment Due to Canceled Orders ** Subject to verification Data Collection and Analysis  ◾  181 Figure 5.862 $514.

.globally.were. Kaizen.work.contributor.shown.more. expanded.used.analysis. an.SIPOC. the.29.easy-to-use.high.exercise.5. 64%.be. of. was. in.were.methods.we. mapping.the.this. a.to.inventory.an.included.a.×.process. p ..activities.the. of.improvements.templates. but.that. from. calculation. workflows.project’s.be.many. of. Figure.earlier. relates. Figures. ervice. value.major.inventory.81%.degree.difficult.context.or. was.useful.investment.In. Kaizen.hands-on.methods.would.28%.These.poor. new. between.advantages.metric.. analysis.brown-paper.late.a.related.discussed.5.$280. root.provided.communicate.methods. percentages.eliminate. percentage.the.discussed. several.issue.of.in.manufacturing.of.182  ◾  Lean Six Sigma for the Office Pareto Chart of Causes for High Inventory Investment C 180 160 140 120 100 80 60 40 20 0 c an el ed S or de r le e ch du a ch e at ng e liv L L de ie er s ot g ar el siz e in g M iss m at er ia ls O th er Root Causes Canceled order Schedule change Late deliveries Large lot size Missing materials Other Major Impact = Demand Variation Major Impact = Lead-Time Variation Count Ca nc el ed or de r h ec h Sc ed ul an ge d La te iv el er ie s o el La rg ts iz g e m at er ia ls O th er M iss in Root Causes Figure 5.information.to.chapter.using.in.to.reduction.the.for.5.to.data.stakeholders.analysis. s .tools.in. using.$1.to.the.If.30.28 major reasons for high inentory inestment. The.tools. cause.and.causes..notified”.. use.collection.process.chapter.29.the.manufacturing.benefits. 5.several.ways. fact.and.in.and.the.presented.5. chart. the. and.of.information. c .In.event. operational.shown.analyze.in. percentages.also....using.30.chapters. It.counts.the..be.to.and..data..investment. are.. type.simple. to.. erspectives. stream. the.in. concept. Pareto.then.using. shown. that. that.of.29. could.30. “customer.deliveries. exercise.because.000. and.5.000..workflows. .. view.not.root.of.gathering. this. the. in. alculated.×.all.is. is.the.also.this.are.classical.a.could.Figure.The.and.tasks.whereas. in.This.business.. of.their.a.=..performance. (VSM). applications. of.by.several.are.discussion. difference.54%.×.this.is.. A.discussion.000. Figure. team.than.alternative.dispersed. Summary In. analysis.Figure.collection.we.automated. office.often.involving.

Root Cause (Late Delivery) Impact** $76.574 $514. .000 $514.199 $61.911 $347.656 $28.341 81% 12% 10% 54% 4% Count Percentange Project Incorrect Invoice Carrier Issue Customer Not Notified Unknown Total Cost-of-Goods-Sold (COGS) Inventory Investment Due to Late Deliveries ** Subject to verification Data Collection and Analysis  ◾  183 Figure 5.000.29 high inentory inestment—third leel.341 A21 A22 A23 A24 16 13 73 6 108 $10.

.. will.and.in.6 67.4 13 12.Quality planning and analysis.. shadowing. box. the.Chapter... of.. spaghetti. Suggested reading Davis...can.how.applied.New. the.York:. diagrams.6 16 14..University.using. histograms..methods..30 major reasons for late delieries. Lean..and.Hicks.. John. continue. templates.V. charts..the.Operational excellence—Using Lean Six Sigma to translate customer value through global supply chains.1997. plots.ed.Montgomery.and. Douglas. our.. at. analysis.Bothe.show.and.4 6 5.&.. We.Wiley. discussion.charts..0 94.processes.Auerbach.office.Oxford. summarization. diagrams.using. templates...5th.were.... checklists....R.time..York:..Fundamental concepts in the design of experiments.Kaizen.Gryna. Charles.184  ◾  Lean Six Sigma for the Office Pareto Chart of Root Causes for Late Delivery 100 80 60 40 20 e tifi d co r c re ti n i vo ce r Ca rie iss ue U n ow 120 100 Count 80 60 40 20 0 Root Causes er t no 0 no r nk n Cu s m to In Count Percent Cum % 73 67.common.tools.Frank.to. presented.some.Introduction to statistical quality control. J..2008. chapter.0 Figure 5. plots.York:.be. process.. analysis.Sigma.examples..Jr.by.. scatter. five-why.series.Turner.6 100.Juran. Pareto.McGraw-Hill.New.New..M.New.Six.1999.Sons. James.ed. end.R...1997.New.as.8 82.of.York:.Press.3rd.six.McGraw-Hill. of.Measuring process capability..teams.Martin..York:.W.C. Percent .graphs..6.. C&E.Examples.M.control..1993.Kenneth.

variations.. recommendations.of.and.“think. ways. consensus.for.discuss. general.of. questions.procurement. of.implement.performance.changes.this. where.exhaustive. Kaizen. implemented.office. focuses.sales.changes.and.design.root. examples.improvements.reviewing.analysis.and.section. general..demonstrate.data.as.is.and.section.their. ends.office. in.to. its.which.Our. divided.These.been.because.presents.. a.6. management.second.to..is.using.into. will.as.to. there. discussion.how.a.are.and..human.box”.Table. This.not.that.process.linkage. The.of.6. related..listing.have.demonstrate.a.a.Kaizen.we.be.goal. to.process.finance.process.to.improvements. why.well.process.These. 185 .prior.is.Kaizen.to.concepts. present.provided.Chapter 6 process improement oeriew The.methods.the. be.owner..sections.chapter. asking..causes.collection.making..process.using.marketing. Common process Changes Table.process.office.team.tools.necessary.tools.first. with.also. which.can..using..countermeasures.methods. to.tools.to. team.specific..and.demonstrated..jumping.these. discussion.to. a.methods. can. a.discussion.have.the. includes.several.encourages. called..between.1.process..analysis.accounting.team’s.six.improvements.of.routinely.This.the..who.several.product.will. several..workflows:.common..improve.of. obtain. the. and.The.purpose.several.improvement.list. and.common.into.and.on.be.The.common.of.improvements. examples..1. outside.three. chapter.to.process.the.higher-level.solution..resources.general. from. methods.

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

value.then.standardization. Should..the. needs. be.during.processes.elsewhere.improving.last.allocated.current.it.this.(NVA).is. reduce.is.the. expenditures.Kaizen.improve.and.words.ask.using.recommendations.Who.It.types.analysis.implied.wanted.well. without.in..whom?.level. or..products.designed.Kaizen.appropriate.based.other.balance.perhaps. team. the.value.be.teams.not.this.make... that.within.It.should.section.requires..by.first. work. and.of.a.was.important.event. to.Table.and.should.degree.always.is.eliminated.Table.countermeasures.extension.be.“General. questions. In.to.ensure..resources.6.implies.follow.to.specialized. in. and.will.team.tasks.will.implementing.knowledge. the.it.their. these.the.In. productivity..1.and.work. experts.should.ask.that.have.to.given.were.value. by.applications.their.also. and. should.of. their. gains. produced.complexity. be.. of.to.is.activities.potential. These. value.is. behind. rapid. a.content. achieve.concept.a.other.low.to.having.related.a.6.that. to.high.on. augmented.were.This.non-value-adding.first.team...that. products.the..Table.questions.In.in.. process.organization.team. may.of..highest.1.4.to.automated?.collected.The. questions.normally. its.discussed.that.a.process.a.it..simplest.to.1. this.to.work.project’s.team.In. The. others.any. w . facility.value.them.work.process. of. and.that. types. In. based.discussion.is.the. this. from.improvements.Kaizen.improvement.behind.the. well.Chapter.to.the. relevant.After. logic.a..and..voice. a. enable.of..increases.quickly.methods.value.customer.logic.in. work. first.if.result. organization?. Chapter.and. or.tools.of. describes.question.where.use.improvement.these.Table.the.to.the.should.be.scope. services.be.process. major. training.first..have.services. the.facilitate. process.prior. its.why.discussions.a.but.the.well.expensive.of. a.should.context. .Kaizen.As. be.members.information. modified.be.deployed.team. increase.required. if.entitled.migrate. to.6.process. Table.has. team.as.a.design.work.the. rationalization. a.of. the. shown.This. as. Should.process. this.1.to..requirements:. possible.a.first.in.This.new.on.make.should. discussions.empowered. an.and. simpler. questions.specific.changes.and.have. processes.question.this.of. orkflows. in. assumed.summary.how.a.but.that.value.customer.our. content?.that. emphasis.which..be.their.the.of.the. content.be. organization’s.that.this.. done.content.team. are:.can. this.. work..help.ancillary..Kaizen.focus.Process Improvement  ◾  187 methods.understand.goal.these. complexity. be. simplify.understand. a.an. to. Should.the...Questions”.they.The.the.high.should.the. was.type.their.(VOC).team. as.we. to.3.the.any.has.listed. Where.a. Our.as.column.producing.profitable.The. 1.necessary?.been.stated.the.estimate.its.words. should.that.most.from.the.team.work.of.is.section.an. outsourced?... In..content. The.process. be.these.were.can.should.current.of. our. performed. on.of.. create..the.leadership.of.on..noted.question. context.6.is.1. resource.customer.should..in.Should.in.doing.efficiently.that.in.rationalization.listed.work?. workflow...of.be.concepts.to. work.prior.their..and.Is. Prior.content.discussed.

This.area. process. with.1. work.determine.book.the.systems. workers.the.a.make. economies.In.should.the.are. because.performed?.example.modified.increase.of.improved.When.different.in.are.operational.or.specialized. done.are.and.is.work.to.errors..of.an.improvement.have.analyzing.difficult..an.job..frequently. will.within.In.a. cause. an.and.very.organization.other.be.would.a.question.job..comments.will.. the.As.setup.do. be..As.is:.by.certain. intellectual.on...make.is..batch.Also.these.result.organization. this.In. Answering.dangerous..the. the. into.may.question.may.and.. also.a.in.perhaps.sense.shown.related. of. Kaizen.directly.require.equipment.sense.topic.in. process.of.task..absence.1.or. more.effective.. is.answer.can.easier.of.through..the.improvement..an.and. to. broken.to.should.best..process.if.production.should.be.outsourced.perhaps.the.it.computer.activities.one.in.the.book..setup...or.. done.best.where.it.Or.were.type.some.work.tasks.a.based.work.can. more.discusses.in.in. can.another. efficiently.analysis.ways.the.cycle.to.be.of.a. organization. make.done.it. using.an.other.workflow.defects.times.impacting..are.as.very.operations. analysis. efficiently. In.situation.be.better.for.Chapter.will.the. across.times.an.work.discuss..should.expertise.be.which...types.has.except.causes.but.within.located. more.is.to.several.question.may..job.a.of.. if. job...188  ◾  Lean Six Sigma for the Office The.to..As.environment.methods.is.switch.can.that.to.maintenance. it.and.to.the.an. operational.Table.a.another. to.be.process.system.considerations.operation.root.process.refreshing.or.reducing..been.from.process. personal. The.fact.to.second.to. should.should.Where. way.in.system.tend.we.facility.perhaps. to.week.process.of.discuss.organization. several..The.cycle. As.expensive.further.also.which.a.of. them.control.number.to..within. of.times. root.be.may.created.another.inexpensive..be.perhaps.also.to.work? The.it.workflow.not.elsewhere.management.to.may.at.to. customers..necessary.the.been.1.operation.frequently.In.times.basis..or.well.are.at.setup.to.very.the.batch. Column..The.be.in. questions.. resources.have.has. day.former.within.do. These.Quality.it.skilled.various.office. do.simplified.economic.example.expertise.its.In.as.Also.it.long.due.a.portions.an.second.many.For.online. answer.earlier. efficiencies.work.rate.not. operation.within. question.also. a.useful..resources.a.areas.can..or..context.more.would.during.performed?.the..balancing. type.this.Who.or.per.management.cost.long.an.from.be.make. first.very.. of. that. best. no.that.to. work.been.internal..backups.situations.the.reductions.we. up. the.a.be.probability. thorough.to.because. moved. a.few.changes.suppliers.and.question:.easily.if.is.In.performed?.tasks.These.be.office.based.elimination.operations. of.is.other.certain.eliminated.be.work.is.from.habit.an.and.do.part.workforce.control.cost..an.or.or.discussed.improvement.abrupt.jobs.How.example.training.of...locations. tasks.balanced..shared..property.tax.chapters.time.occurring.required.additional.of.should.detail.tend.work.the..should.is.we.eliminate.experts. unit.example..organization.or.a. of.facility.the.compensation.to.will.system. Work. outsourcing. through.of.Table.across.improvement.the. to.may.they.proportional.to.a.another..3. four.less.longer.of.situations.be.books. event.section. in.an.when..bottleneck’s.one.and.work.6.very.the.done.on. .it.they.this.work.in.way.be.relative.their.time.on.Relative.expert.discussed. scale.have.major.noted.6.outsourced.the.minimize.work.this.database.too.

root.processes.politics. As.is. to. been..failure.problems.changes. third. These. period. to. employee.or.process.to. improvements. improve.the. system’s. management.method.improvement.number. performance.5. for.operational.to.process..a. noted. of..operations. production. way. discuss. by. significant.to.. This.Chapters.balancing.align.departments.their. full.of. be.can.organization’s.period. extent.discussed.inability. eliminate. achieve. extended.objectives.. methods. shown.be.an.requires.It.process.type.rather.subordinate. and.their. fully.mixed-model.information. when. very.associated. implemented.overly. process. teams. time.are.to.through.inspection.include. Later. and.as..addition.. analysis.a.creates.rapid.job.were. increases.a.more.such..change.scheduling. lists. resources. a.This.complicated... will.tasks.just-in-time.size. errors. specific.analysis. of.redesign. of. lower. root.. to. usually.and. is.methods. of.and.source.Six.economic. due.confusion.third. because. this.to. operational.and. accountability. causes.the. able.the. their..complicated.processing. situations.products..competition.processes.to.operational...many.understand. reduce. than. contrast. cycle.depends. significant.accountability.that.and. rather. Typical..in.for. batches..and. complexity.procedures. be.of.to.financial.It.methods. setups.are.an.operational. However.or.system. examples.infrastructure. organizational..immediately..moved. process.using. causes. requirement.operational. process.product.been.of.discussed.deployment.single. of.of.. to..due. time. it. sign-offs.teams.outside.is.methods. routinely. take.effectively.made.and.as. to.chronic. is.also.of.also.generally.issues.1. reporting. a. example.. process. eliminates.general.the.However. cost.. it. of...new.silos.. to.process. combination.result.As. procedures... changes.these. directly. of.has.metrics.process.of. because.materials.not.result.identify..As.include.commitments.3.across.office.improvement. will.the.method.extended. a. cost.eliminate. we. and. these.redesign. integrate. their. office.working.and.. how.to.performance.scheduling.layouts.implement. should.share.1.However.of.an. to.on.requires. design. teamwork.and. the. modification.time.other.The.quick-response.this. example. sometimes.reinforces.in.operations.extensive.conflicts. many.type.between. However..organizational.six.activities.are. for. in.mentioned. Kaizen. be. to.of. common. an.NVA. lead. in.on. to.was.3.solution.their.as.benefits.. a.reduce.from. general.then.and. .resource. Chapters.listed.to.systems. require.operational. effective. will.an.a.reduce.well.scheduling.and.goals. time.more.Sigma.toward.application.a.not. their.. structures. of. improve. Common.a.handoffs.to.. chapter.in.changes..and.Process Improvement  ◾  189 easier. also.6. identify. the.of.However.of. than.conflicting.workflow.it.current.creating.a.5. increased.into. that.than.an.units.time. on. an.improvement. these.situations.of.which. in.requires.of.downstream. improvements. a. depend. section.improve.scope.general. The. rather. include.work.an.the.. may. operational.has. workflows. a.This..the.batched.designs.existence. lead.6. and.issues.mixed-model. Table. also.the.services.effective.bureaucracy...because..Lean.organization’s.improve.and. of.is.employees. based.Finally. are.cost. changes.to. an.modifying. and.lead. amount.lot.which.implementation. operations. mixed-model. an. to. most. to. But.discovered.These. system’s..time.Table. reinforcing..examples.and.common. organization.or.improvement.flows.do..functional.absence.information.These.create.in.office.The.because. the.for.process.to.transfer. which. several. time.performance. an.already.

implementation. This.One..the.require.products. older.objectives..team.their. higher. a. work. enable.a. the. value. tend. customer.new. or.a.that.Kaizen.products.100. and.6. value-adding.or.higher.a.to.more.to.to.office. effective.should.and. is.changes.that. their..still.usefulness. an. be.some. Also. systems.for.people.adversely. This.also.tasks.result.but. workflows.190  ◾  Lean Six Sigma for the Office of. nonavailability..balancing.goals.direct. common.scarce.in.of.there.has.occur. start-up. problem.again. from. .than. distracts.management.designed. that.may.if.resources.incentives.be. for.increase.rates.reinforced.graphical.the. will.work.and. practice. organizational....products.process. too.their.available.overly.competing.reason. production. In.would..by.As..resource.design.aligned. capacity.long.innovation.workflows. if. drives.expensive.implementation.poorly..on. will.work.standards.a.should. in. or. in..on. productivity.purchase.and.satisfy. reduces. it.third.valueadding.production.to.create.misalignment.process.more.work. enormous.seldom.days. ituation.shown.exceeds. reporting.As.the. of. that. situations..example. with.time. that..bottleneck. inventory. doing. It.will.wrong. they. of.their. when.not.be.modified.to. of. process.between.on.is.an.the.to.require.variety.schedule.use. higher.their. in. change. have. provide...busy.their.the.on.more.production. useful.context. their.services.utilization..products.working.cause.financial..poor.profits.In.requirements. information.technology.of. wrong.. that. This.impacted. everal. but. may. products.may..saleable.These.may.example. requirements.because.near.to.Kaizen. Another.methods. information.than.practice. creation.an.or.teams.insisting.NVA..carefully.tend.situations. require.However. customers.to. process.organization.focused.result.to.misalignment.managers.result. services.the.services.different. to.design. low-margin..the.are.and.habits. reporting.people.of.they.organizational.example. to.context..sales.new.supervisors.an.a.with.trained.people..As..of.time.their.a.nonaligned.become.is. often.change. rather.must.rather.utilize.may.that. reasons.As. process.require.. rather.. reworked.an.create. information.lower.time. a.encourage. products..than.overtime. resulting.a. far.rates.the.related.direct.to.Table.inefficiencies.in.organizational. s .including.1.to.work.for. these.regardless. rather. co-workers.behavior. Referring..This.Revenue.expense.be..efficiently. rework.work.and. These.incorrect.be. As.due. providing.that. goal.and.those.Busy..within.emphasize.been.business. levels.be.of.a.of. advance. more. productivity. work. of. than. a.extended..salespeople.schedule.imply. the. This.work. amount.to.require. due.involved. idle.percentage. formats.for. migration.level. ineffective.operational. systems.. nonvalue-adding.One.important.a.throughput.kept. Useful. types. co-workers. occur. will..materials.few.of.completed.be.an.why. products.organizational.simplification..efficient.resulting.column.well. information.is... breakdowns. tasks. need.and.event. data.conflict.and. job. in.provide.groups.effective. may.and.may. working.time.also.percent. of.of.not.as.work.efficiency.lead..process.be.also. s .significant.higher. information. work.that. work. contrasting.can.Metric.in.this.caused.is.that.current.This.a.in.a.metrics.tasks.. is.and..and.system’s.customer.may..(NVA).resources. from.efficient.higher.tend.to. different.be..operational.be. to.or.being.extent.tasks.customer.contain.because.only.sell.. schedules.organization. and..done.equipment...does.during.activities.example.local.may.part.resources. facilitates.environments.toward.will.

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

5.8 7 5.7 94.4 13 12.0 120 100 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 67.1 root cause analysis: leels 1.6 80.6 100. .26.1 9 6.30). and 3 (Figures 5.4 6 5.6 10 7.8 82.2 100. and 5. 2.6 16 14.0 94.28.192  ◾  Lean Six Sigma for the Office Pareto Chart of Causes for High Inventory Investment or r de d ch an ge liv er s ie el e iz iss at er ia ls Ca nc el ed Sc he e ul La te de La rg s ot M in g m O th er 180 160 140 120 100 80 60 40 20 0 d le Sc Major Impact = Demand Variation Major Impact = Lead-Time Variation Root Causes Canceled order Schedule change Late deliveries Large lot size Missing materials Other Count Ca nc e or de r l h ec an ge he du La te l de iv er ie s o el M La rg ts iz e m iss in g at er ia ls O th er Root Causes Pareto Chart of Root Causes for Canceled Order 100 80 Percent Percent 140 120 100 Count 80 60 40 20 60 40 20 0 Root Causes 0 te de e liv ry iss ed sc La h u ed le r cu at es ch u ed le U nk w no n M In ac Count Percent Cum % 108 80.5 88.6 67.0 Figure 6.

41 X=1. • ere may be several ways to communicate process improvements depending on the intended audience.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. .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=1.568 MR=0.3830 6 4.2 use graphics to show process improements.13 LCL=-0.114 2.133 0.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 1.48 LCL=0 Time (Minutes) 3 5 7 9 11 Observation 13 15 17 After Improvement 19 UCL=2. • Several graphs may be used together if they help communicate process improvements. Process Improvement  ◾  193 Figure 6.

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

goal.. Different.implemented.a..types.also.operational.a.may.of..work.very.result.an.and.results.objectives. the.within. and. medium.from.issues. similar. structure.medium.of. organization.will. is. control.and.eliminated..an.improvements. medium.with.process. modifying. a. reporting.The.to.the.if..objectives.this.statement.and..mistake.place.process.carefully. as.be..This.areas.are.of. improvements.control.described.is.these.effectiveness.goals.. that. and. conducted. other. effectiveness.work.of.process.teams. a.through.operational.of. Kaizen.and.modification.controls.structure. methods.As.and. p .process.a. of.of. 5S. ortions.they..or. can.different..have.On. type..type. combinations.operations.sustain. effective.significantly.sustainable.changes.are.but. Implementation.and.situations..have.of.make. purchased.is. cause.. and.cycle.the.effectiveness.executives. these.lower.is.increase.not.possible..do.complexity.reduce.restructuring. very. because.a.due. methods.as. always. and.throughout.process.less.miscommunication.effectiveness.optimum. method.will. is.high.period.of..an. new. analysis. classified. elimination.time.Kaizen.manner. work.countermeasure.using.In. Lean. an.at.a.. level.communication.of.at...deviate..then. e . deployed.may.they.the. is..metrics.in. if. tasks..changes. This. of.is.and.remain. root.reporting.be. functions.or. high. on. not. reduced. a.having.in.. sustainable. work. process.6.evaluated.be.when.typically.process. in.difficult.to.senior-level.effective.to. a.cause.standardized. In..cost.similar.organizational.operational. eliminate.other.of.its.improvement. However. situations.organizational.similar.a.consistently.This.time.this.ensure.the. process.to.to.However.to.an. change.errors.instructions.of.somewhat.eliminates. team. information..prescribed..metrics.. authorized.important.interpersonal.eliminated.various..of.may.as.modifications.work. changing.degree.The.performance. purchase..increase.will.over. very.these.resultant.be.within.classified. remain.of.then.improve.must.deployed.is..The.be..standard.as.an.and..behind.some. a.time.structure.easy.organization.level.efficiency. of.determine.the.lead.of.or.a.then.eliminated.. tasks.of.directly..associated.these.follow.well. of. proofing.usually.effectiveness.is..to.organizational.analyzed. having. they. of.sustainability.sustainability. is.because. frequently.between. but. and.and.. sustainability..organizational. quipment. Table.be.a.to.in.will. sustainability.properly. the.. which.the.this.types. focused.have. over. consist.of. consist.will. of.structures.are.For. a..communication.lower.result.the. Whereas.next.analyzed. properly.ensure. was. and.functional. words.redundancies.errors.who. But.a.it.and. in.not...its.hand.(IT). achieve.to. audited.levels.. ..the.structured.and.decrease. of.or.short.these.several.. not... has.lieu.operations.organizational. effective.type.measures.very.organizational.functions. mistake..from.impacted.authority. this.time.but. a.time. does. Another. result. technology.Process Improvement  ◾  195 If.to. As. has.tasks.changes. effectiveness.because. issues. of.. must. level.and.most.2.divergent. equipment. a.system. level. problem..of.other.may.will.that. effectively.if.This.availability.interfaces.operations.operational.work. once.financial.several.employees.systems.redesign.can.will.above. organization’s.be.are.proofed.a.of.in.to. be.because.as.sustain. are.be. is.it. an.As.and.high.the.goals.modifications.prior.efficiency.because. manual.breakdowns. high.reason.example.In.complex.high.an.types.root.reasoning.usually.this.work..

process.performance.very.mentioned.forget.difficult.costly. the.most.a.(IT).these.in.automated.fully..situations.. communication. process.a.training.jobs.employees.or.change. The.(SPC).result.may.a..possible. turnover.. on.and.as..also.of.metrics.information.to.lack.manually.due.has.process.frequency.Employee.must.5.. some.very.changes.may.to...to.of.identified.and..metric.of.process.collection.is. significant.a.and.employees.or.through. cost.having..confidence.employee.systems.perhaps..sustainability.many. modification.6.the.Table.is. it.data.up.of.it.there.as.result.changes.effectiveness.employee.useful.often.but.to.at.listed. last.in. programs.occur.training.process..a.verbal.to.a. meeting.provide.prompt.of.in.and..is.is.or.In.effective.In..service.well. .are..may.with.not.a. other.choices. testing..available.to.variables.common.. by.their.service.These. control. job. verbal.standardized. as.statistical.for.are.be.training...same.the.of. The.information.as.done.methods.maintaining.2.difficult.ensure.be. s .to.in.tools.unless.degradation.the.manually.aligned.technology.on.operational.The...effective.6.provided.process..impact. with.a.employees.over...although.control..new. few.intensive. a. The. group.As.in.train.should.process. systems..sustain. robust.with.well-trained.Unfortunately.the. inspection. also.one.a. rates.ways.sustain.date. in.more.very. procedures.several.timely. statistical.the. training. exceeding.because.cause. tool. maintenance.very.may.. work..critical. process.in.sustain.organizations..heavily.a.keep. an.to.team.process.tools. the.or.to.Audits.it.is.time-consuming.impartment.maintain.It.industries.reporting.seldom..training.way.sustainability.apply.a. percent.are.meetings.have.offer.identified.issues. in.frequently.and.we.to.also.balance.and. poor.process.incidental.reasons.component.and.An.sustainability.been.these.that.the.over..simple.these.menu.and.difficult.Employees.involved.situation.and.a.system.employee.less.higher-priority.not.they..one.. reporting.be.variables.countermeasures.changes.should.methods. process. creation.of.control. is..explanations.updated.Kaizen. listed. instructions. and.. having..useful.the.this. important. These.and. situation.action. new.monitoring.then.a.importance.root.196  ◾  Lean Six Sigma for the Office effectiveness.they.comply.As.other.but.In.process..when.periodically.controlling.by..in.discussed.to.clearly.programs.been.are. root Cause Analysis and improement Strategies In.at.to.are..for.of. work.to.analysis.more.may..to.to. system.be. annualized.because.important. is..simply.and..that.dependent.used. of.be.employees.time.sustainable..training.be.their.been.to. 25.situations.problems.also..be.for.In.is. of. ervice..of.should.a.lack.very.they.the.include.intensive.that. routinely.and.predictable.occurs. situations..level.exacerbating. audits.continuous.This.necessitates.of.Chapter.for.service.reasons.type..of.of.people.analytical.or.These.reasons. itself.This.the.key.measurement.low.be..However..sustain. employee.delaying.several.Although. include.a. and..a.major.there.control.If.and.development. when. changes.be.SPC.that.employees.2.component.office.. new.leave.data.tasks.required.are. Table.are..increase.can.can.management.of.useful.reporting.having.in.of. However.instructions.also.gathering.providing.must.understanding.industries.controls.obstacle.only.they.manner.process.analysis. include.the..training.is. classified.are.medium..employee.time.are.. their.

modified.to.is.the.was.project. true.has.in.the.prove.discussions.team’s.a. very. particularly.be.an. Detailed control plan and audits.and.or. Project selection aligned with business goals.is.elimination. in.these.the. Kaizen. team.metrics.operational.3. deployment.and.a.selection.it.goals.It.a.vetted.this. charter.with.must.quantified. 4.using.well-defined.words.with.analysis.analysis.as.should.drive.that.to.or.her. discuss. that.that. 3.relationships. project.be.causal.need.. Root cause analysis drives all improvements.problem.to. stakeholders. may. p . 2. 7. Standardize procedures and implement training.relevant.their. that. This.Kaizen.is.reviewed.for.methodology.project.step. Process controls must be tied to root cause analysis.that.as.. be.information. .our.objectives. in.it.Step.business..charters.financial. should.cause. concept.of.of. created.based.a.. root. of.get.Recall.advance.cause.ensure.with. This.assigned.ensure.well-facilitated.successful.3 root Cause Analysis and improement Strategy 1.variables. be.selected.a.heavily.his.process. team’s.deployment.. that.Lean.in.project’s.is.of.and.statement.book..section.data.earlier.very.more. discussed.in.This.the..a.preliminary.improvement.application.between.other.process.this. 8. we.. a. a.in.success.can.champion.be.A.of.example. project’s.discussion..root.of. project.to.problems.can.charters. deployment. is.team.been.its.have. review.relevance.discussed. Kaizen.a.to.begins. discussed.tools. the.general. not.manner. finance.improved. This.that.in.useful.6..event.As. The.of.analysis. changed.we.earlier.Kaizen.champion. requires.5. was.analysis.modified.easy.investigated.. a.well.step.problem..shown.process.different.finance. a.be.one. Obtain approval from process owner.for.be.process.methodology.be. 6..the.working.an.discuss.Countermeasures.a. Table. Recall.Kaizen..methods..at. if.process.Ideally.that.related. process. 5.project.Process Improvement  ◾  197 table 6.countermeasures.of.has..all.must.objective.several.to.the. charter.dependent..must..Six.root.team.sequential.in.through.and.A.project. 10.usually.if.fit.prior. Measurement systems improvement.and.chapters.process.causes. will.on.Also.wrong.aligned.effective.process.in..analysis.a.is.assumption.goals.alignment.Once.. important.to.perspectives.diverse..been.from.in.in. aspects.must.statistically.first. the..stated. Mistake proof the process or change process design.to. the.is.and.problem.analysis.improvements. and key stakeholders.root..team.and.team.on. advance. Communicate project results to key stakeholders. roject.reviewing.cause.prior. owner.an. be.its..other.point. approved.project.its.must.fully.gathered.all. and.improvement. a.will.this.the. of. chapters. and.charter.it.team.process.a. 9.a. earlier.fully. A.in.business.team’s. In.project. the..not. this. a..this.chapters.charter.cause.root. all. Prove causal effect Y = f(x) using tools. because. by.Sigma.gathering.

materials.percent.to...its.diverse.“customer..extended..control.656.investment.not.4. as. the.by.notified”.late.The.process.audit.is.assignment.overall.these.orders.problem. anticipated.should.can..financial..benefits. severe. ollected.usually.the. if.project.see.balancing.or.project’s. reporting.6..mistake. and. of. late.examined.an.down.that.business.30.eliminate. discussed.to.focuses.is.and.related.in.6..This.be.Figure.example.preliminary.programs.have.or.inventory.process.the. was.of.an. be.that.easier.if.costs. p . Kaizen. detailed.moved.office.calculate.project. root.reduce.higher-level. will. some. 5.and..extent..required.fix.activities.be. that. having. metric.future.1.the.a. how.to.issues.the. as.4.delivery.we.of.issues.When.investment.can.on.standardization.that..business.focus. the.000..begins.26...the..discussion. not.the.is. thorough.or.should.others.will.$1.to.Finally. team.able. team.improvements. a.management.eliminating.to.5.teams. total.of. process.analysis.they.$347. and.late. net.which.shown. financial. team.its.permits.training.. shown.from.for.their. of.inventory.process. inventory.materials.workflows.As.and.been.resources. impact.require. analysis.an.countermeasures.implementation.for.analyzed.been.4..“customer.to.also.charter. a.not. the.are.charters.team.was. organization.for.costs.all.numbers. At. well. is.business.17.benefits..problem.when.implementation.to.Kaizen.deliveries.inventory.percentage.29.. investment.showing.using.complete.would.a. may.problem.format. A.inventory.intervention.reduction.5.investment.the.turning.to.high. Prior.to.cause.will. as.issues.of.root.. process.causes.benefits.that.such.procedures.be. enhanced.to.original.been.causing.associated.proposed.discussion.addition.As.000.the.. of.analysis.several.process. in.Kaizen.It.section.measurement.the.“customer.complete.198  ◾  Lean Six Sigma for the Office must.the.financial.Kaizen.easy.6.the.poor.net.for.. total. to.electronic.major.concept.lower. process.a. project’s. point.then.easily.associated.this.the.aggregate.manual.. system. also.in.in.describing.according.of.that.canceled.have. F .degree.investment.have.with.a.the.common.how.successively. the.schedule.the.000..using.inventory.than.this.addition. Kaizen. most.evaluate.the.each.the.up. the. cause. because. rescope.issue..be.root.identifying.of.countermeasures.noted.previous. end.as.project.for. The.for.to.levels.language.to.improved.5.000.1.that. Recall.and.root.used.project.. status. delivery.The.link.plan.the.for.reasons.are.the.In.cumulative.obtain.already.into.a.information.the. is.improvements. benefits..found.to..of. divided.represented.at.point.of.investment.Also.impact.to. causes..Figures.inventory. Also.should. schedule.other.notified”.8.to.a.investment.physical.sustained.notified”.root. countermeasures. Table.high. igure.canceled.. In. . ercentage.on.reasons. toward.to.either.analysis.major.high.percent..root.Table.be.the.a.is..put.concepts.28.data. example.it. c . on.communicate.mentioned.It.5.with.it.three.be..analysis.the..is...useful. the.sustain..of.highest.will.uses.to.to.the.example. investigation.together...its. the.create.the.teams.eliminate.performance.in.be. a.investment.of.implementation.6. systems.by. in.a.to. investment..should.problem.the.investment.. realized.has. in.to..problem. the.the.that.new.charters.concepts.a.a.causes.executed.process.ensure.inventory.cause.after.. $2.shown. of.clear.inventory.problem.Kaizen.will.orders. Chapter.to. 34. analyze.elimination.possible.an. this.separate..Thus.to..is.creation.It.contributor.hand.proofed. require.the.applied.against. business.was.to.must.be.a.Recall.issue.Figure.those.

the.improvement.6.2.shows.000 $ 322.numerous.be.context.owner.team.000 $ 55.clear.investment.major. organizational..hypothetical.were. of.to.communicated.is.associated.the.of.that.important.6.plot. occurred.after.through.management.of.. to. expand.tied.Chapter.ways..be.back.time.reduction.process.box.types..6.Any.in.be.656.analyzed. countermeasures. it.work.with.performance.Then.eliminate...of.which.part.a. detail.people.methods. our. .consisting.in.how. elements.Also.describes..with.199 Team 1 February $ 6..control.to.be.and.Figure.turn.chapter.in.system.improved. several.to. examine.one.the.in.to.assistance. examples using Common process Workflows An.from.is. notified”.a.also.problem.that.rigorous.and.Kaizen.it.to.of...discussed.workflows..8..be.between.2..can.2.also.the.more.perspectives.statistical.will.the.clear.Process Improvement  ◾  199 table 6.the.we.of.Finally.demonstrate. the. in.control.an.In. transferring.level.analysis.a.of. context.can.3.a.shown.Figure. applied.will.specific.operational.656 Team 3 System match Assign a specific and load/unload to customer time for zip code each carrier.to.The.000 $ 66.in..Chapter.three.using.5..modified. processing.permanently. change. the.it.In.a.a.199 January $ 10.4 Countermeasures at 4th-leel root Cause—late delieries Root Cause Countermeasure Incorrect  Invoice Carrier Issue Customer  Not Notified Send an automatic e-mail to customer when order is shipped.that.and.several.these. Figure.this. The.be.linkage.Figure.to.histogram.“customer.shown.cycle.this.Chapters..In.(or.in.used.briefly.This.will.discussed.will.reviewed.. $ 76.through.cause..financial.methods.to.can.of.can.process.in..inventory. information.29 improvements.clearly.The.methods.and..work.6.be.the.$347.with.root.improvements.operations.organization.and.is.same.presentations.and. organization.and.also.office.6.familiar.relative.process..common.Chapter.advanced.The.9.improvement. include.is.process.not.example.of.because.are.tasks.remainder.of.process. of.911 Team 4 Business Impact Implementation Date Implementation Costs Net Business Benefits People Responsible Data from Figure 5.process.them.is.discussed.from.process.the.in.estimates.processes.discussed.a. process. March $ 25.in.events.such.baseline. An.workflows.example.. shown.a.was.and.several...lower-level.problem.team.the.2.this.local.are.more.should.that.with.7.improvements.5. discussion.graphs.eliminated.should.prior.time).note.Chapters.improvement.its.six.showing.Also.process.in..aggregates.the.of.chart.

and. analytical.of.showing.financial.failure. other.to.of.and.broken. information.present. maintenance.discussed.and.using.is.stakeholders. These.analyzed.chapters. allocated.process. increase..resources.information.aids..sales.as.a. year.workflows.organization’s..shown. materials.year’s.addition.and.5.the. how.takt.six.4.improvement.for.sales.general.The.are. itself.finance. important.examples.by. setting.forecast.made. that. levels.how.or.be.next.the.organization’s..will. an.done. by. issues.of.through.to.organization’s..are.team.useful. In. goals.a.3.decrease.we..of.. rates. a.as.4.6.3.combined. a.of.very.similar.forecasts. any... Example 1: Financial Forecasting A.manufacturing.describing.office.planning.product.6.5.was.location.and.several. to.using. process.In.will.. showing.is.financial..provide.or.budgeting.groups. always.earlier..them..services.facility.percentage.methods.capacity.are. through.several. and. over.will.... service. to. other.as.a.will.been..the. marketing.increase. map. throughput.and.collection.. demonstrated.Lean. a.and.measure..In.team.production.for.quantifying. there.up.to.they.addition. is.to.we.list.services.the..This.revenue. information.common. up.in. Kaizen.including..general. these.several.starbursts. or.200  ◾  Lean Six Sigma for the Office section.there..and.for.to. team. process. mark.goal. and. if.a.that.provide.and..processes. percentages. information.useful.with.both.data.review.used. process. financial.basis. no. how. forecasting.these... financial.process.context.the.provide. made.process. operational. are.7.approaches..information.an.budgeting.In.its.be. and.be.Figure.Chapter.the.example.financial. in. for. it.Using.this.forecast.have.Also.using.statement. previous.the. macroeconomic. is.revenue.These.functional.process.discussion.control. show..The.the.to. reasons.both. quantitative.sales.also.and. Figures. map.is. an.percentage.implication. flow.an...and. process.prioritized.in. This.contained.how. by.budgets.manufacturing.goals.these.these.service.and.there. Six.and.by.the.year’s.forecasting.industries.organizations.also..an. functions.to.approach. .sales.Communication.Kaizen. mean. revenue.3. the. at.targets.discussion. is.process.quantification.and.meet.quantification. reports.to.can.in.discussed.provided.products.in. analysis..goals. These. lower.a.targets.calculations.and.be.forecasts.show. breakdowns.discussions.analysis.context.In. key. a.process.well.ideas.and.wherever..a..budget. for. of.Sigma.opportunities.in.As.revenue.This.a. and.to. as.should.budgeting.of. concepts.developing.fact.very.adjusting.products.. is.points. common.down. and.necessary.sales.revenue.simplified.Chapters.in. office.3.3. forms. and.a.be. process.approach..annual. a. they.and.group. with.. symbols.as.8. similar.or.includes. organization.attaching.In. the. by..time.workflow.will. directly.required..procurement.map. for.such..operational. to. to. every.several.is.is.3.of.or. strategy...can.identified. include.long.examples.scrap.achieved.satisfy. to. industry.in.by.. rework.product.production.are.yields.. placed.reviewing.analytical.this.reporting.mapping.set.that.process.previous. Figures. and.provide.Relative.to. metric.As.department. and.in.targets.an.discussed. on. improve. 3.. and.information.Kaizen.are.determine.be.a.include. product.tools.Chapters.logistics.a.

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

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

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

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

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

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

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

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

expenses.that.the.factors. experience. terminated.excellent. well.to...hiring. Coordinate on-boarding of new employee. coordinating.measure. and.each..and.were.Important. iring. per.requirements.related.processes.100.often.associated. lower-level.people. activities. Poor coordination between the hiring manager and job applicant results in a loss of applicants or long cycle time.policies.of.$1.6.in. well. a.a.capture.way. a.for.in. between.description. needs.was.do.type.without. accommodate. be.translation. h . a.HR.operation. The.previous.found.accurately.to.the.new...once.operations. days. Ineffective on-boarding results in employee or hiring manager dissatisfaction.to.to.examples.an.process..typical..description.Inaccurate.employees.formal..Kaizen. example. interviews.changed. new-employee. Translate hiring manager requirements into job description. process.the. Ineffective communication vehicles for the type of job or the applicant pool.A.issues.. are.work.than. Each.in. Coordinate job applicant interview process.not. olicy.or.000.having. as.and.. of.as. new-employee.requirements.a.with.of.percent.failure.process. Post the job description to attract job applicants.team. requirements.analyze.requirements.see.job.tasks.include.Process Improvement  ◾  209 Human Resources–Hiring Employees Hiring Manager Requests an Employee Using a Job Requisition Verifies Required Job skills.its. shows.the.turnover.rate. these.the.one.hiring. .a. simple.that.into.It.7.are. year.retaining.translation.broken.teams.. Figure 6. as.to.analyze.making.similar.posting.7 example 5: hiring employees. applicants.a.effort.in.which. 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.where.this. start date. 3.employee. of.include.using.manager. or other relevant factors results in wrong job applicants. experience.In. certain.relevant. Typical Issues Inaccurate capture of job requirements such as skill levels.education. 4. they.job.in. consists.related.it.to.more. number. workflow.of.a.concerted.. 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. job. p .division.performance..there.has.to.be. Figure.000.job...annual.hiring.solution. 2. if.been.work-hour. for.skills.from.with.becomes.improved.to.special. of.employee. hiring. Kaizen. employees.and.a. of. on-boarding.manager.manner. manager..a..improve. education.resulted.other.this. missed..termination.as.of.an.Issues. the..employees.hiring.my. operations.

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

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

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

financial. This has increased the leadtime of new product releases from 100 to 200 days and increases development costs by 50%.incorrect.of.the.000.6.changes.. and.common.causes.enables.the.or.having.process. m . Figure 6.superfluous.Projects.customer.to.a. anner.a.listing.and.lower.specifications.methods.one.alternative.Chapter.Figure. if historical information is known.meeting. Problem Statement: All VOC information is not transmitted to product design or additional requirements are added that customers do not value or need. Summary Table.10.several.customer. this can be taken from the projects charter.It.a.9 Kaizen project—new product marketing research.process.can.a.higher.described. and other metrics. Root Causes: TBD Required Actions: TBD Current Performance: Insert metrics.weighted.deployment.poor.6.total.be.be.made.prioritization. . and graphs to show current performance baselines of operational.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.than.The.total.of.to..calculated.of. identify.for.presented.ranked.in.survey. more.suitable.000 annually.designs.that. charts. or $2.are.. Future Performance: TBD Anticipated Benefits: TBD or.having.weighted.important.shown..eliminate.5. to.business..1.those.in.weighting.the.was..more.to.performance.adding.root.a.requirements.in.

types.operations.may.less..verbal. investment.organizational.. how.six.be.and.several.improvement..procedures.a.process. that. These. in. The. internal.group.combination.and. management’s. inventory.improvements..and.project.6.model.6.sustainable. to.section.process.include.Figure..support.various. processes. are.then.to.work. should.example. root.In.to.they.between.22).improving. use.breakdowns. these.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. valuation.6... and.addition. relative.of. teams.8.“General..6.was.result. time.chapter. for..vary.control. These.in.that..and.may.controls. process. example.6.with.6.audits.process.lower.Questions”. be.those.to.project’s.to.typical.we.used.their. issues.and. asset. a.is. the.common.poor.functions..questions.2.prior. a. used.consider.of.an. cause.methods.the.shown.goals.specification.miscommunication.entitled. within.maintenance.in..included..budgets.office..As. cycle. analysis.and. Kaizen.were.to.meetings.yields.apply.process. the.of. improvements.where. gain. and.a. to.control.Figure.as. Figures.related..of. analyses.also.This. inventory. to.that.as.1.4.process. occur..and.additional. business.achieve...Table.in.It.4.listed.the.in. of.3.Typical.office.asking.processes. .mentioned. issues.recommendations. types. operational. using.it.demonstrated. through.their.important.other.be.such. and.should. that. as. increase.and.particularly.was.and.inspection.some..as.a. process.(SPC).the. modification. mentioned.As.or.process.effectiveness.for.concepts.10 prioritizing new product marketing research projects (similar to Figure 5.6.want.programs.related.showed.financial.finance.tools.These. such.cost.instructions. Figure.4. should.. create.control.of.sustainability...controls.These.and. demonstrated.1.6.consists.statistical... training. shown.process.five..balance.related. in.discussed.establishment. issues.forecasting.the.well.effective.Figure. situations.processes. Table. case.testing..process.

.Pearson-Prentice.Inc.. Peter.an. and automating processes. Dan. Cousins..New.Process Improvement  ◾  215 issues.... and.Hall.New. David.. improvement.Morgan..New.2007.result.York:...Mark.....&.Upper..be.Cambridge.York:.San. Daniel.Aalst...Hall.operational.Kaufman..Bustard.Business process change—A manager’s guide to improving.W. Michael..Press.Media.P.der.Groover.should.Norris.Value stream management.variety.MIT.identifying.Prentice.. Jones. Mikell.. that.organization.Havey.always. . opportunities.MA:.Kees. T. this.Simon.numerous.. The.Publishers.. Womack.a.Essential business modeling...2008. is.through.... James.Operational excellence—Using Lean Six Sigma to translate customer value through global supply chains. Paul.2002. process. conclusion..van.NJ:. James.Auerbach.Systems modeling for business process improvement. Jones...Harmon.. Lamming.assessments.methods.River.are.. improvement.Kaizen.Rich.Artech.Inc. and.projects.Hee.York:.....by. Suggested reading Wil.. methods.teams.House.2000.Martin.. from. and systems.including.van. Lean thinking—Banish waste and create wealth in your organization. redesigning.Work systems and the methods.Saddle.and.Schuster..2005.2000.and. P.As.. discussion.Workflow management models.Francisco:.Hines.a..2003..Peter..eds.Richard.of.O’Reilly.Paul.Norwood.MA:.Sebastopol. 1996..Kawalek.Nick.CA:. measurement and management of work.

.

implementing SolutionS 3 .

.

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

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

deploying. a.team.. project.awards..of.analysis.Positive. within. simple.be.and. and.coordination.can.communicate.teamwork. less.improvements.deployed. rewarded.goals.be.told.to.message.the.an..holders.message.also.culture.charter.reward.within.target. importance.objectives. whereas.include.audience.began.vehicle.resources.environment.format.and. communicated.a. problem.simple.these.in.have.communication.their.organizational.is. is. of.formats. change.are.of.increases.to.as.the. teams. breakdowns. when.This.empowered. assumption.Implicit.and.deliverables.an.positive.which.work.team’s.As.its.an. higher.degree. This..and.project. employees.work.actions.because. there..depend.should.are. Empowerment.pay.require.levels. a.As. through. event. in.using.especially. done.individuals. an.teams.incentive.and.organization. In.activity. teams.relative. some.their.be.Extrapolating. employee.fail.there.tied.support.. that.This..important.minimum. on.either.reinforcements.cooperation.sending.that.with.that.project’s.Kaizen.of.studies..the.the.It.be.its.At.to.reduction.an. varies.organizational.. organizational.organization.and..level.be..exact. empowered.and..can.a. messages..their. accomplish.to..can.project.and.. these.consensus.. there..the.incentives.Kaizen.a.charter.is.to.incentives..management.organization..include.an.a.In.should.across. concept.other..Negative.the. always.. statement.context.where.be.all. this. higher. recipients.example.are.a.at.the.this..team.also.the..These.termination..Building a Business Case for Change  ◾  221 being. type. and.at.very.. .senior.activities.. assumption. form.budget.root.perhaps.similar.of.. an..systems.a.of.organization.execution.types.execute. many.needs.organization’s. level.communication.of. interesting.have.. have.specific.been. depending.after.discretion.necessary.or.to.business.vehicles.objectives. result.its.to.people.even.to.. be.recognition.and.busy.. improvement.forms.formation. meetings.take...a..to.many.scope.e-mails.is.having. an.complicated.Kaizen. is.prior.Kaizen.degree.action. simplest. What.an. through.but. teams.and.its.. circumstances.change..must.organization.well.its. one-on-one.will. management..consistent. that.the.and. gets.promotes. team.decreases.from.any.on.activities. In. should.the.and.process.of.is.their.review.very..regard.event.disciplinary.and.of.issues.performance.to. However.deploying.sensitive. content.a. organization.of.that.forming.during.impact. that. empowerment. should.promote.obtain.their.case.them.pay.politically. are.should.an.and. their.help. to.until..examples.under.or. be.used.be.information.conditions.on.incentives. its..expend.negative.an.for.communication. in.including.This.employees.it.change.the.of.bonus.at. As. their.have.initiative. an.and.process.team. implies.high.of.for. with.process. is.in.organization. the.the.and.to.implementation.permission. bonuses.for..within..its.message.Communication. project.true..ensure. cultures.of..and.have...employee’s.. aware.only.managers.their.an.noted.importance.important..many.the.both. organization..the.because.Kaizen.properly.of.goals.planning.an.defined.changes.or. strengthened.improvement. gets. Communication. intervention.example.is.promotions.and...status.systems.appropriate.investigate.and.a.The..that.important. rapid.of.on.both. a.eliminate...and.the.organization..executives. is.Also..delivered.the.their.Kaizen. when.as.shown.level.causes. it.changed. in.message..types.different. concept.a.incentives.all. employees.similar. positive.organizational.training..For.their.and.within.work.should.reasons.energy. depending.communicated.other.

require.developing.process.is.topics.of.methods.for.use. causes. process.project.situations.and.or.activities.case.process.improvement. process.methods.This. phrase.is..presentation.execute.are.training.this.and. these.training..may.be.Kaizen.others.discussed.breakdowns.objectives.related. we.should.necessary.discretion.team.control.an. countermeasures..the.accomplish.a. methods.. the.. a.also.analyses.process.proof.that. or. Lean.more.. Countermeasures..and.Kaizen.be. a.their.assigned. be..goals.classical.stream. characteristics..or.infrastructure.important. the.planning.of.types.to.to.In.team..from.the.how.objectives.process. collecting.to.root.costs.a.experts.Lean.more.must.in. ability.project’s. discussed.and.forms.sustain.the.elimination. Six.our.advanced.in.proposed.In.information.change.required.a.technology.analyzed.execute.most.building..chapter.work.process.In.which.will.focus.a.problem.require.discuss.and. expected.that.transition.plan.characteristic. and.the.this. advanced.. projects.more.elimination.analysis. summary.analysis.team.process.communication. use..root.a.are.should.must.of.for.and. stakeholders.statement. organizing.technical.team. However. more.the.In.developed.team’s.As.may. improved. and. advanced.team.tools. . well.hand. many.analytical.that.team.their.these.of. would.as.analysis.charter.However.if.these.. elements.of...also. important.In.prerequisite.resistance.causes.business. Sigma.different.changes.countermeasures.It..mistake.to. methods—hence.to.data.for.selecting.will.to.summary. requires.project. be...will. arlier.this.methods.simplify.an.benefits. These..now.management.Additional. have.will.and. methods.made..of.should. and..a.occur.different.of. members.its.countermeasures.workflow. methods. in.a.analysis. team.(VSM).owner.building.improvements.a. trained.this.. a.Chapter.local.the.change. countermeasures.and.to.of.then. event.data-intensive.and.are.with. tools. focus.required.of.and.However.of.help.then.of.reoccurring. in. standardize.on.is.necessary..execute.be.tools. On.its. the..chapters. Kaizen.ensure.in.or.project’s.prior.Sigma.tools.the..example.review.mathematical.the..to.eliminate.other..analysis.to..incorporate.its.regarding. a.experts.5.in.organizational.. projects.their.balance. may..and.tools.implement.be.. aligned.they.a. root.circumstances.a.implementing.causes.project’s.to.place.changes. as.communications.control.that.transitioning..(IT).noted..the.combination.a.require.”.and.in.providing. these.process.. of.Empowerment.require.Six.tools.be..data.chapter. We.to.root.proper..we.and.control. team.. and.are.analysis. their. retention.key.nonrandom.causes.one.and.specific.methods.use... a.change. included. Six.to.root.assist.a. Sigma. “Lean.versus. are. of.eliminate.be.project’s..222  ◾  Lean Six Sigma for the Office greater. from.facilitators. patterns. more.back.and. should.technical. In.project.a. have.conducting. combination..analysis.situations.and. initiatives.by. of. of. the.of. Six.to.and.an.. In.objective.to.training.and.teams.map.process.a.readiness.to.and. e .implementation. creating.will. discussed..in.of.degree.team’s.goals.a.concepts.Lean.a.into.plan. context.. Kaizen..and.and.on. of.information.to.a.information. creation. of. an.must.causes.value.resources.to. if.on.downloaded. activities..discussion. tools.systems.or. In. from.the.organizational..complex.support. Teams.trained.basic.. several.level.of. decision.verification.. from. projects. Sigma.and. analyzing.a.Usually.our.

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

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

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

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

higher.are. cost. priority.this. ensure.volume. business.project’s.for. analysis.recommend.per. problem. analyses. net. cost-benefit.. highly..integrated. calculates. and.differ.projects.this.. Ideally.of. align.project. In.strategy.by. it.goods.clear.and.will.This.However.identification.are. events.However. expected.process.. of.expenses.senior.project.types.analysis.reviewed.activities. a..benefits.pricing.support.deployment..related.completes. avoidances.and.This. in.classifications..project.. an.to.properly.increases.a.subtracted..they.has.we.alignment. their.Building a Business Case for Change  ◾  227 Cost–Benefit Analysis In. the.Project.benefits.charter.include.the.an.is. on.These..project. Kaizen.activities.These. increases.unit..and. case. the.costs.costs.dramatically.collection.. it.initial.in. in.much.been.directly.reinforce. both. cost-benefit.development. warranty.organization’s. project. expenses.ultimately. increases.nonfinancial.made.shows.local... process.classifications.balance.charter’s. the. process.top-down.project.financial..sales.research.management. favorable.. broken..increases.key.process. changes.in.are.discuss.chapter.has..the.a.requirements.that..Ideally. usually. These.a..can..after.a.expense. implementation.their. increase. important.process.the.freight.. process.to. and.flow.There. that.Figure. related.based. is.are.analysis.Pricing.a.This.of.necessary.process. and.raise..benefits.and.cost-benefit.with. of. indirect.it. pricing.also.the. building.of.. technology.be.cost-benefit..it. organization..project. employee..and.are. changes.be..deployment.into.to...periodically. supplier.that.7.the.will.eliminating.help. business.other.is.be.of.benefits. for... to.and. to.been. financial. that.benefits.the..cost-benefit..will.for.cash. also.in. Projects.where. analysis.have.important.the.and..be.transitioned.analysis... improvements. benefits.. premium. and.labor.implementation.charters.promote. satisfaction.expense.be. related.should.well.of..7.Figure.when.reductions. the.project.financial.or.improvements..similar.gain.impact.organization. financial.in. be.done. financially. and. data.work.easier.always.metrics.of.example.(COGS). goods.created. and.problem.will.from. the.four.A.projects.include.representatives. organization.. to.ensure..transitioning. and.an.revenue. administrative.process.are.increase.other.down. process. context. cost-benefit.local.an.its. project.up.cost.aligned.its. are.front. In.as.when. basis.and.which.to.separate.other.In. returned.2...from.productivity.strategy.require.revenue-enhancing.sales.prices. A..sales.will.will.original.a. the.that. through.nonfinancial.shown.larger.through.a.In.a.various.circumstances. fact. labor.importance.the. will.seen.organization. overtime.project’s. relating.updated.volume.benefits.it.project.an.is..the.and.2. form.units..owner. has.produce.. an.work.organization.also.benefits.to.new.to.increases.to. a.begins.and.managers. .problem.they.a. operationally.for. improvement. customer.produce.other..to.organizational.a.prior.An.benefits.by.or. boundaries.of.the.project.analysis.financial.costs.team. other.types.process.expenses.are. in.are.the.analysis. improvements.financial. and. throughout. laws.the.on. context.a.are..manner.this..created.per.expenses.overall.can. leaders.and.to.process..scope.is.owner.help.unit.into.resource.team.sales.decrease.team.improvements.to..materials.As.as. activities.a.concept..revenue.as.This. this. to.will.increase.and.implementation.may.with.Volume. a. regulations.the.description.

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

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

to.product.scale.8.as.important.defined. Frederick F.a.NPS. considered.rating. that. eliminating. Figure 7.10.project.ratings.percentage.types.of..or.to.various. to. NPS.NPS. Reichheld.between.to.NPS.various.6. was.. neutral.correlates. attributes.In.the..analysis.their. in. A.”.other. romoters.project.400.final.a.people.0. NPS. views.for.in.A.by. promoters. in.. 2003. article.stakeholder.ways.detractors.the. entitled.by.or.ratings. a.NPS.stakeholders.industries.to.0.percentage. part.to.Ratings..customer.to.on.the. In.between.detractors.a..unlikely.in. neutral.if. calculated.customers.question.an.“extremely.recommend.world-class.percent. s .survey.scale.16.issues. statistic.recommend. be.The.to.are.0.“extremely.stakeholder.have.in.will.as.is.from.the.identified. project’s.0.often..from. as.that.to.not.It.that. was.that. A world-class NPS benchmark is in the range of 75% to 80% (Harvard Business Review).a.is.or.7. are.of. scale.service.defined.Detractors.this.to.gain.as. are.article.specific..incremental.same..rating.barriers. a.and.than.likely.of.NPS. Need.summarize. one. consider.80...subtracting.project. December. risks. using.to.and. “The.differing. You. F.product.is.a.to.by.NPS.to.questions. benefits. (5534).”.product. Harvard Business Review. as.on.average. of. across.10.also.they..and. not.key. that. without.better..correlates.are.organizations.more.and. Grow. ervice.modifications. Frederick.into.a.percent.would.75.service. discussed.that. requires. reported. It.experiences.stakeholders.summary.is.decision.of.execution.a. Key stakeholder analysis.others.10.The.the.9.230  ◾  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.key.and.because.” December 2003.. P .their. responses.asked.ranges.a..goal.recommend.concept.support.important. a.3 2.analysis. Reichheld.are.key.team’s.The.that.project’s.percentage..is. the. .of. Article Number 5534.are.calculated.the.a.approximately. and. is.to.usually.and.or.. The. entitled “The One Number You Need to Grow.10.and.reported.the.with. One.to. and.determine.attributes.sales.. of. This. team.a..consider.the. range. by.was.method.will.to.its. classified.key.to.than.correlated.are. Number. an.NPS.is. recommend”.

high.5.useful.on. objectives.the. the. fear.of.in.systems.training.having.recognition. have.the.stakeholder.of.In.characteristics.These.. changes. in.priorities.more. been.impact.These.on.proposed. by. deployment.countermeasures.This.4.organizational.using.Several.to.project.introspective.is.in. its.7.and.Kaizen... the.stakeholders. to.and.negative.7.7.Figure.a.resistance. prior.collect.analysis.are.4 3.7..to.countermeasures.. developed.of. a..impacts.solutions.changes. than.right-hand.to.have.that. process.first.more.address.organization’s.promoters.tend.to.of. data.barrier. empowerment.require..necessary.process. up.alignment.objectives. all.estimated.people.an.results.of.mitigation.by.a.of.and.the.been.each.with.additional.promote. those.obtain.Countermeasures. include..project.Figure.and.positive.Kaizen.is.process. A.concepts.a.reward. considered.level.goals.change.of.an. recommended..its.this.key.based. improvements.organization.the.viewpoints.countermeasure.key.busy.7.3. situation.On.change.analysis.concerns.potential.help.the.analyze.include.to. ensuring. and.and.and.establishing. Also. can.analysis.a..information. originally.chapters.shown. context.tools.the.project. this. solution. .efficient. effectively.analysis. Kaizen. important. communicated. team’s. oncept. unknown.plan. team.may...been. evaluate..team’s.execution.characteristics.plans.previous. a. by.focus.team.These.development.The.stakeholder.of.and.because.risk.the. do.4. not.and. the. An.Figures..barriers. Figure.Building a Business Case for Change  ◾  231 Stakeholder Group Countermeasure/ Improvements Positive Impacts Negative Impacts Negative Impacts Mitigation Activities Potential Issues Success Probability (Risk) Figure 7.type.of.a.diverse.and. Kaizen. these.side.Kaizen..In.this.stakeholder. c .are.... impact analysis of key stakeholders..methods.shown. Certain.is.the.very.will.to.risk.in.whose.of.conflicting.organizational.in-depth.have.5.is.barriers.is.to.goals.a.mitigation.discussed.aligned.it. front. team.as.tools. to.key.is.difficult. minimize.are.ensure.in.of..to.be. be..people.these.summarized.effective. of.

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

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

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

7. achieve.is.activity.activities. schedule.summary. longer. Root Cause Analysis 12. Customer CTQs 2. during. event.a. Cost/Benefit Analysis 16.. Response Plan 21.duration.discussions.well. Scheduling process changes.be.are.charter..a. of.an.management. key. in. planning.in. Transfer Control 25. Vital Few Xs 13.. Standards 8.Figure.in. to.various. are.days.context..is.summarized.according..scoped.or.an. is.objectives.shown. New SOPs 23.useful.. Follow-up Activities Activity 1 Activity 2 Activity 3 Activity 4 Activity 5 Activity 6 Person Accountable Day 1 Day 2 Day 3 Day 4 Day 5 Day 6 Day 7 Day 8 Day 9 Day 10 Figure 7.. and.the.Notice.and.. follow-up. In. time. occurring. Maps 10.current.just.time. as. improvements.by.goals.these.identified. time.showed.occur.1.to.this. igure.completed.short.of.completed.scheduling.how.effective. Stakeholder Analysis 5.In. Potential Solutions 14.7.the.4.because. Communication The.as.work. require. scheduled.to.project.format.been. with..are. implementation...of.. Figure.important.Building a Business Case for Change  ◾  235 Project Name: Deliverable Team: Complete (Y/N) Major Activity 1.of.or.Chapter..guide.Gantt.4. Perform. scheduled.the. that. COPQ 11..the.communication.7.defined.of. High-Level Map 6.to.associated.normally. had. Control Plan 20.was. a.activities.a.end.In.Kaizen.in..Kaizen. a.events.including. carefully. Validate Improvements 17.that.duration..throughout.those.and. Process Performance 19.Improvement.their. version. . New Process Map 22.work.with. a.shown. Standardize operations 24.checklist.managed.few. team.goal. activities. to.a.In.. be..an. but. “Should-be” Process 15. Mistake Proof 18. F .schedule. Project Plan 7.of.effective.repeatedly.form.sequenced. event. Kaizen.team’s.importance.be.7 6. conducting.discussion.chart.that..presented.this.A. activities.structured.based.the.very. are.their. activities. Team Charter 4. Kaizen.to.that.generic.that. Define Problem 3.event.be.event.all.the.communication.the. Detailed Proc. is.is.and.the.on.book.toward.emphasis.this.scheduled.executed.activities.in.has.7.project.ensure. shown.event.discussed..this.In.on. Data Collection 9.sequence.

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

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

.

organization’s.causes.requirements.continuously..The.every. to. ISO.advanced. requirements. onconforming.. a.must.supplier..to.three. International. customer.are.problems.to.of.. standard. Group..audits.in. includes. recognized. corrective.quality. customer. to.documents. and.. supplier.of.improvement.to.system.. These. importance.understanding.of.is. Industry. from..AIAG.that.9000. systems. to. the.a.manufacture.maps.a.9001.should.products.requirements.for.of. Automotive.and.supplier. meet. process.quality. can. systems.difference. prevent. At.9000.a.tools.many.team.breakdowns.the.a. most.is.It..meet.a. actions. The.quality. have.ISO..level. countermeasures.describes.control.specify.used.9000.more. d . have.management. emonstrates.improve.has. Action. normal.. demonstrate.its. materials.mutual. and. It. for. to. regulatory.templates.between.and. quality.is.organizations.requirements.basic.the.customer.standards.ISO..system. basic.suppliers.the.Although.of. n . designed.has.there. that.of.standards. developed.within.but.ISO. related..an.supplier.. such. internationally.management. basic.a. 9000.9004.and.. those.also. and.must. design.measurement.can.quality.systems.using.elements. the.that. is..process.the. quality.a. activities.integrated. consistently. them.level.9001. and. This.a. range. or. occurring.road.detailed.an. and.records.is.ISO.... standards. Institute.develop.. control. system. by.of.. promoted.basic. (AIAG).that. control.that. as.system.set.a.and...the.standard.ISO.and. from.internal.only.system. meet. similar. requirements.certify.that. eliminate.used.are. quality.that.information. ISO.between. prevent.be. Standards..consistently.control.customers.root. this.formal.is. (ISO).will.documented. 239 .plan.a. control.identified. the.quality.next-higher.Chapter 8 implementing Solutions oeriew Once. procedures.not.particular.quality.

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

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

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

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

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

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

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

is.subgroups.8.of.binomial.and.quality.will..late.can.days.100.Implementing Solutions  ◾  247 of.this.of. subgroups.percent.per.In. those.it. the.using.proportions.criterion.be.which.counts.a..less.as.c.number.collected.the.used.be.either.standard.there. are. individual.13.the.is..example.original.the.the.can..count.be.proportion. range.as.the.control.these.falling..each.size.Note.12.that. of.cycle.created.is.62. in.to.different.sample.work.field.. evaluation.that.were.5..day.Practical.cycle. Figure.calculated.should.event.As..an.measured.this.quantify.is.as.count. either.look.in.100.monitor.larger.p-chart.second.the.a.on.into.error.or. such...calculations.a.100.to.proportion.the. chart.is.interest.of. an..be.situation.limit.invoices.to.. subgroup.days.variable.calculated. now.that. in.an.in. shown.with.office.successes.or.is.12.a.a.that.example... charts. than. contrast.In.using.c-chart.size.in. is.with.of.as.This.of. in.be.of.illness.the.that.can.situation.errors...cycle.in.constant. having.sample.individual-moving..invoices.software.invoices.Table.smaller. example.a.is. control.without.size.distributed.as. range.errors.We.12.of.of.that. words.100.situations.on.being.14.number.or.noted.can.range.the.an. invoices. sizes.hours.error.It.as.be.counts.of.values.skewed. X-bar.than.has.these.variation.means. only. subgroups.the.data..that.if.how.variable.less.that.was. control.also.is.other. control.are.the.is. to.symmetrical.there.that. the.distribution. can.sample.5.5.and. used.this.using.of.environments.each.found.we. .fraction.control.the..standard.c-chart.of. limits.is.pass.. unequal.2.Figure.evaluated.used.It.plot.values).be.an.equal..for..8.8.chapter..would..this. subgroup. week.a.employees.s.deviation.be.calculated.deliveries.the.day. Figure.characteristic. be.charted.As.statistics. of.than..1. A. in.subgrouped.variable.are.concept.or.are.a.2.The.invoice.500..the.percentage.monitor.equal.in.500.8.this.an..invoices.percent. equal. chart.The.being.noted. and.the.of.sizes. of.include.upper.the.shows.is.Minitab®..X-bar.this.or.sample.example.that.chart.where.of.of. a.time.time. have.appear.the.predefined.errors. an.the.per. observations.less.way. p-chart.used.and. A.be.is.average. be.In. The.as.of.using.As..being..percentages.example.Poisson. equal.X-bar.data. with.the. of.calculated.on.66.from..original. can.could.which.situations. the.in.based.errors. the.(transformed.shows.is.of.measured.than. as..fail. predetermined.a.an.a.lost.form.The.200.91.This.fields..than.errors.invoicing.a.found.charted. wider.a. in.subgrouped.that.normal.the.of.every. sample. Table.of.of. subgroups.created.due.time.data..count.errors/100.per.is.a.Data...fields.days.these.at.c.of.is.modification. limit.chart.could.we.. np-chart.a.1. but.invoices.will..invoice.fields.on.are.having.pass-or-fail.a. chart.invoices.sample.the.because.the.upper.for. often.12-day.criterion.revised.of.shift.day.of.be..were. a.count. A..using. distribution..example.unequal.data..the.having.data. and.the.would.. size.per.counts.is..later.It.versus. are. control.days. statistic.be..should.200.a.when. statistic.invoice.an.fields. individual-moving.using.situations.control.is.of.n.which.monitored..and.sample..per.can.discuss.times.s/√n.99.individual.also.can.calculation.deviation.would.distribution.02.number.corresponding. then.invoicing.The.Another.examples.proportion.the.seen. X-Bar.category. charts.p-chart. invoicing.using.of.who.standard.to.found.as.number.shown.because. or.variation.be.as.200. chart.the.proportion.In.error.c-chart. an.a. in.the. In.variable.than.8.because..

844 LCL=5.0 1 6.86 Moving Range (Days) 4. .0 7.0 Individual Value (Days) UCL=14.705 _ X=9.5 5.0 1.5 3.62 12.248  ◾  Lean Six Sigma for the Office Individual Moving Range Chart of Cycle Time (Days) 15.1 Control charts for normally distributed ariables (continuous).5 10.741 Figure 8.020 11 10 9 8 1 3 5 7 9 Sample 8 UCL=7.910 11 13 15 17 LCL=7.863 Sample Range (Days) 6 4 2 0 1 3 5 7 9 Sample 11 13 15 17 LCL=0 _ R=3.789 LCL=0 X Bar-R Chart of Invoicing Cycle Time 12 Sample Mean (Days) UCL=12.11 _ X=9.0 1 10 19 28 37 46 Observation 55 64 73 82 __ MR=1.0 10 19 28 37 46 Observation 55 64 73 82 UCL=5.5 0.

l . can..upper.lower..is..several. done. that.construct.necessary.a. calculations..lists.example..A.if.a.of.control.control. we.is.percentage.would.In.this. control.standard.the.in. The.metric.create.sample’s..of.a.the.example.control.are.detailed.the.fields.set.team.Kaizen.subject.event.default. calculations.(~99.control. upper.9966 Proportion Less Than 12 Days 0.numbers.with.errors. other.counts.±1.imits.a.a.invoicing.of.can.example.at.chart’s.being.be.variable.used. at.85 LCL=0.to.be.contained.the.As.this.average.. their.invoices.distribution.It. software. Minitab.in. .may..necessary.subgroup. limits.shown.first. from.the.steps.chart.and.0.period.. create.interpret.is.parentheses..Implementing Solutions  ◾  249 P Chart of Proportion of Invoices Less Than 12 Days 1..In.each.been. patterns.should.u-chart.could.c-chart.of.96.found. and.select.. charts.manually.type. based.noted.noted.of. its.setting.example.percent).of.±3..control. mean.. in.±3.matter.200. deviations.used.It.the.control.90 0.revised. book.imits. the.common.the..and.be. Also.based. also. However. be.(~95.plotted. Table.4. automatically.interpret.Figure.the.73.the.of. value.. from.will.calculation.the.and.data.u-chart.8261 1 10 19 28 37 46 Sample 55 64 73 82 Figure 8.help.chart.just.if.lower.A.and. this. automatically.provided. set. mean.00 UCL=0.the.the.chart.percent). shown.. their.collected.3.in.that.complicated.is.. be.control.to. In.control.limits..the..u-chart.a.a.suggested.. control.different.chapter.the. control. were.on. l . with.control. example.2 Control charts for binomially distributed ariables (pass/fail).when.second. ±3.±1.proportion.within.expert. As.every. However.varies.9113 0.95 _ P=0.end. using. these. distances. can.consistent.on.to.charts..readings. be.is. the.be. interpret.counts. used.errors/500.provide.time.limits. is.chart.be. an.a.6.have..and.percent).control. that.an.set. charts.(~68.of.distribution.to.is..for.size.should.its.to.creating.into.in.and.A.limits.calculation.up. to. with.that.steps.. standard.8.reference.at..set.subgroup.8.of.need...the.monitored..brought. is.

of.73%).of.frequency. Determine the data collection system.a.In.of. subgroup. control.limits..of.99. Determine the rational subgroup size and frequency of sampling.on. to.control. 4.is. assignable.outside.calculating.lower.be.73.27. table 8.we..control.the.a.confidence.that. variation.is. .then...limits.due.of. the measurement criteria.the.are.of.percent.the. deviations.times..its.5.that. chart. Calculate the control limits (standard deviations): +/1 (~68%).implies. including where the data will be collected.a. 2.at. i. On.reference.and.3 Number of Errors Per Invoice Control charts for poisson distributed ariables (counts)..within.is.As. 5.limit.five.that.be.in.to.chart.with..workweek.low.can.989 Figure 8.an. and the evaluation methods. input or output variable.6 how to Create a Control Chart 1.approximately.statistical.from.point..that.variation..and. 6.interest.this.the.this.control.collection.being.must.cause.days.to.assume.of.original. the.smallest.may.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. +/– 1.In.This.a. rational..e..percent. 3.of.variation.if. the. week-to-week.the.In.the. would.it.analysis. subgroup.distribution.limits.upper.because. other.an. the.contains..the.878 UCL=5.0.level.probability. Select the metric..rational.high.context.mean.cycle.then.different.from.reference.implies.distribution. Select the type of control chart based on the distribution of the variable.outside.a.control. implies.. exhibit.subgroup. situation.This.if.the.. by whom.typical.there.of.96 (~95%) and +/– 3 (~99.its.are.a.example.established.basis.daily.collected.addition.. Plot the data and interpret the control chart patterns.size.size.is.

daily.12..the.and. are.invoicing.consideration.days.X-bar.23.cycle.statistical.their.of..the.or.100.proportion.is.are.a.its.the..To. This.cycle.In.indicates. to.individual-moving.also.12.8. cycle..that.charts.a.they.proportion.five. change...will. Figure.expected.times.the.occur.11. noted.less.patterns.will.local. to.the...that..be. be.a.percent.averaged. be.100.8.rational..statistical. The.the.charts.invoices. collection.control.an.variation. with.to.the.individual.subgroup.to.days. 5.standard.615.within.formula.The.shown.having.be.subgroup.the.range.73%. calculated. created. the.chart.arranged.modification.pattern.variation.probability.criteria.percent..important.together.means. that.are.in.Figure. this.less. an.an..includes.at.66..to.and.in.73.methodologies.4.that.values.the.where.variation.It.variation.than.information.is.control.in.had. of.all.this.. had.1.which.9.shown.of. discussion.the.that.Implementing Solutions  ◾  251 hand. subgroups.A.would.then.time.exists.assume.13. will.variation.range.less. may. to.the.a..variation.shown.cycle.plotted.in.is.23%.of.a.that.common.redesign.0.percent.99.weekly..will.0. invoices.process.of.successive.control..limit..be.these.shows.outlier.that.necessary.could.82. interval.range.be...distribution.control.must.final.invoicing.whom.of.cycle.process. day.that. chart.observation.be.61.measurement.by.subgroup.a. current.days.may.time.a..we.the. to.several.members.lower.the.but.The.discussion.on.50.by.Otherwise.data.days.remain. would.control.a.by..occur.specific.to.each.of.moving.As.that.closer.collected.implies.times.observations.limits.in.limits.if.the.s/√n.cause.of.than. implies.limit.individual.99.between.that.between..a.be.percent.week.subgroup.9.will.is.time.the.variation.interpretation.to. is.control.0.patterns.than.should.related.deviation.calculated.to.means.important.current.days.its.the.chart.per...days. will.shows. organization.process.to.calculated.statistical.basis.invoices...1.set.stable.example.8.of.percent. data.an.that.91. .14.than.and.cause. that.percent. patterns.average. X-Bar.percent.assignable. associated. be.than.the.that.we..point.cycle.control.greater.cycle.average.control.as.a. as.of.as.average.X-bar. need.86.with.limits.cycle.need.fluctuate..This.the.a.shown.These.of.in.and. Our. both..level.cycle.data.performance.the.are.Figures.2.the.only.At..the.100%.our.in.previous.note..mean. level.9. Data.Recall.the.limits.in. charts..1.a.classify. within.within. individual.due.99.would..less..show.is.or.the.62...are.time.than.example.cycle.control.data.Figure.a.step. projects. improvement.This.control.This.sequence.is.This.the.in..same. should.time.it.this.66..other. acceptable.greater.evaluation.example.chart.the.cycle.Another.process.less.a.size.moving.However.days.only.shown.to.. is.average.charts.is..a.reduce.an. another.of.This..work.is.the.daily. In.show.the.control.on.99.then.percent.daily.the.less.82.of.the.if.of. sample.next.implies... these..the..proportion. this.The.8.range.now.month..percent.in.second.are.time. s .that.review.reclassified.values.to.expected.this.be.of.range.73.is.cycle.team.chart.In.data.and.=. control.time.is. monitors.As. It. be.the.collected.99.than.interpreted.likely. ituations.of..example.example.a.have.or.that.In.on.the. times.the. be..or. used.that.constructing.than..for. most.variation.86. interesting.because. not.focus.is.noted.exceeds.8.as.be.are.sample.of. words.collected.control..86.to.and.times. performance..23.. expected. the.control.of.times.of.by.However.common.significant.process.rather..upper. observed.Also.invoice.–.probability. when.

control.99.chart.483 2 2 13 25 37 49 61 73 Observation 85 97 109 121 __ MR=1. p .limit. 5. or..0 7. zero.create.similar..control. in. error.metric.. addresses.descriptions.control.0. names.0 12. that..0 1 8 6 4 2 0 1 11 5 5 I-MR Chart of Cycle Time (Days) with Nonrandom Patterns 33 33 5 6 1 1 2 UCL=15. a. 9 points in a row on same side of mean.the.and.noted.implies.or..In.. defects.0.the.assumptions.contained.that.of.989.3.subgroup...were. this.chart.is.from.this.the.invoice.in.Figure.data.observations. of. performance.is.73.subgroup.number. pattern. variable. has..not. 6 points in a row all decreasing or increasing.it.is.the.The.number.several.c-chart.that. per.this.subgroups.field.for.and. more.was..88 13 25 5 15 15 37 1 5 55 55 5 51 1 1 1 49 61 73 85 Observation 1 5 97 6 LCL=4.monitored. sampling.to. observed.item.a.example.1.shown.In.limit.control.8.data.even.these. Figure 8.lower.of.size.data.252  ◾  Lean Six Sigma for the Office Individual Value (Days) 15. level.3.expected. contain.Note. rocess. types..5 5.count. been.that.be.a. 100.limit.. of. fields. its. the. may.to.lower.monitor. one.the. unit.defective.the.to.being.c-chart.of.in..each. .to. control.constant. include.a.zero.day.five.that.p-chart. control.limit.be. 4 out of 5 points > 1 standard deviation from mean.when. examples.and.The.is.fields.is. In. The.subgroup.per.4 Control chart interpretation. lower.to.amounts.each.5 10. chart.its.invoice.a. data.control.and. It.error.or. of.errors.. sampling.by. customer.area..on.Figure.is.was.one.counts.the. data. could.unit..should..as.collected.a.upper.unusual.used.average. charts.or.stable..60 109 121 5 11 Moving Range (Days) UCL=6.have.984 LCL=0 Error Codes 1 2 3 5 6 Interpretation 1 point > 3 standard deviation form mean.another.invoices.used.percent.fields.878.8.are.fields.of..defects.Recall. context.This.control.that. 2 out of 3 points > 2 standard deviations from mean. shown.15 5 2 5 5 5 22 2 6 _ X=9.were.elements..

of.example.data. the.greater.perspective.when. several.its.missed. nonrandom. indicates..indicate.sources.there..patterns.code.occurred.Poisson. third.time.and.is...the.8.There.4.caused.cycle.limits.from.to.due.correlate.extremes.a.maintenance.In. or. to. I-MR.identified.However.sequential.user.within.that.the.that. by.of.trend.process.people.occur.that.control.or.adherence.the.a.Implementing Solutions  ◾  253 to.in.this.in. flags.the.±2.standard.as.cycles. occur.or.an.actions.have.the.I-MR.distribution.on.second.Finally.a.I-MR.created.. the.useful.process.containing.chart.using.to.outliers.root.causes.range.distributed.change.assignable. and.may. process. chart.due.subgroups.a.may. nonrandom.Kaizen. into.3.such.back..clustering.to..usually.points.shown. will.the.data.when.of. is..Subgroups.the.increasing..statistical.performance.many.a. places.six.advantage..This.to.former.machine. shift.unusual..standard. some.patterns.to. evident.and.stable.process.normally.an.beyond.will. underlying.detected.adjustments.by.is.would.to.also...assignable.detecting.they.and.bring. be.the. variation.shows.or.distributed.be. c .signal.the.team.to.the.is.trend.0.factors.if.control.of. error. mean.to.of. a.control.a. data..observed.force.as.long.is.with.be.action.outliers.decreasing.indicate.outlier.underlying.to.a.recorded.Other.such. However.variation.5.of.error..identified.charted.that. situation.situations.would.the.by.nonrandom..immediate.nonrandom.basic. variation.errors...variation.operating.outliers..are.nonrandom.assumed.process.mean.a..code.the..either.three. latter.outliers..the.stable. charts..between.six. the.they.to.8.to.another. evaluates..contain. potential.of.that..errors. A.This. a.four.be.. process.a.8.variation.is.to.Figure.these. may. pattern...schedule.a.the.An. As.may.and..process.or. one.also.context.than.a.pattern. causes.label.will.and.We. Recall.1.conditions. improve.chart. schedule.that.than.more..at.not.deviations.A.that.situation.may.take. and.problem.code..process.that.when.indicate.is.cycle.variation.contrast.the.of.However.nine.is.correction.a.deviations.necessary.patterns. patterns.to.of.associated..binomially.the.work.As.such.Figure.because.be. nonrandom.control.variation.allows.shown.the.chart.are.the.in.process.being.As.variation.4..charts.high...process.for.indicate.low.889.same.easier. Minitab.outlier.if.can.code.from.extreme.result.distribution. a.of. mean.to. the. software.conditions. at.patterns.detect. of. This.a.the.software. on.others.include.its. an.time.may.reasons.different..will.side. outliers.of.are.procedures.there.issues. p .methods. Minitab.sources..cycle. ondition.time.from.be. are.4.or.points.as.nonrandom.that.variation.an..the.this.a.within.identify.of.existence. eight.be.observed.major.be.are.occurrence.time.it. root.limits.settings. variation. sustained.is.may.use. a.2. in.steady-state.continuous..of. process.state. .makes..process.are.in.a.of.moving.conditions.understand.improved.control..sources..control.their. attern.sequential. example.causes.information. an.materials.these. mean.variable.the.return. opportunity. and.causes.discuss.control.or.may.team.as. level.Figure. that. in.a..Kaizen.the.value.charts. possible...use.8.if.all..caused.and. are.Figure.variation. A. the. example.has.types.process.Some.patterns.environmental.within..that...it.A.using.at.4.an.the.error.to. toward..favorable.In..to. the.an. patterns.the.actually.patterns.to.chart. existed.underlying.several.In.is.control.identify.two.process.level.more.process.individual.something.discrete.Minitab.in.may.set.shown.measurement.easy.In.the.machine.in.long. the.

it..common.are.or.evaluation.ensure. that.and.“fudge.the.to.measurement..or.detect. accuracy.a.in.one.values.impact.codes..six.be. used.is. measurement.resolution.or.an.resolution.data..The..in.the.six.regarding.dependent.These. millimeters.environmental. codes.in.recognized.stamp..shown.patterns.of.based. of..accuracy. s .components.to.and.codes.the.offset.its..may. or.called.down.how..explain.to.metric.factors.or.change.changes.variable.Accuracy.detect. components.meter.example. “belt”. parts.form. seen.to. Six.measurement.error.has.greater. two.detect. issues..have.reports..may.are.might.six.would.a.true.easiest.error.8.mean.necessary. value. A. The.measurement.manual.changes.an.environments.the. needs.information.its. ystems.in.of.the.materials. . process.to.to. more. greater. there.a.error. errors.team. added.do.of.make.others.situation.correct.process.measurement.of.not.resolution.words.component.days. importance.In.average.value.problem.the. average. systems. show.is.itself.or..to. components.from.measurement.work.in.types.management..quantity. can.on.standard..measurement...system.and. to.within.Figure..gathered. or.measurement. standard..the..hours.If.a.and..two.nonrandom.a.system..reduce.because.this.cycle.invoicing.from.changes.team. measured..adequate.activities. in.other.measured.of.must.is.the.a.measurement.or..scale.variable..measurement.related. measurement System improements Every.systems.system. that.with..system.will. office.that.. the.impacted.when.As.be.factor”.these...up.In.system.. a.collection.on.work. in.its.measured.is.and.if..not..acquired. classes. points.measured.then.. error.increase.. of.. the. two.control.by. employee. time.distance.portion.Minitab.by.Resolution.information.centimeters.created.to. three.decisions.It.value. are.when.in. classes.is.skills.been.in.manage.minutes.reproducibility..fact..process. Stability.then.focus.management.there.information.by.status.differs.error.there.control.their. the.accurately..automated.a.monitor.procedures.four. understand.time.of.of.. a.resolution. also. indicate. system..process.eliminate.ability.procedures.example. these.system.to.has.need.system.this.example.higher.mean.training.least.is.would. has.the.team.5. adequate.from..to.dashboards. of.chart.are.error.In.error.components..deterioration.Our.is.bias.performance. variable’s.An.moving. be.resolution.accuracy. these.to. measurement. occur.time. over.a.and.other..the.manufacturing-centric. Sigma.process.system.6. These.components. within.is.also.measures.because.a.measure.the.five. also. one.and.This.in.measurement.An..variation.would.skills.of. integral..of.measurement.often.used.measurement. to.codes.measured.precisely.depending. people.once. team.out.computer..through.. deviations.points.in.time..measured.process..stability.usually.error.equipment.Referring.linearity.4:.the.but.of.system. report.and. the.stamp.A.by.than.several. are.rounds...respectively.second.environment.being. Kaizen.again.. the.These.example.be.of.repeatability.identifies.its.a.is.provide.office.other.be.an.an.is. out.a.deviation.on.from..that.are.it. true. changes. than. But.is.variable.a.at.These. when.the...being.The.distance.254  ◾  Lean Six Sigma for the Office additional. office. discussions.

on.the.many.they.of.established.in..under. poor. on. that.you.impact.this.between.problem.example.know.weighted.the.show.are. based.toward.in.on.which.survey.may.understand. same.do.to.show.of.an. also.process.end.periodically..As.ongoing..which.to.graphs.variation.or..they.±10.first.time.each. the.Implementing Solutions  ◾  255 must. and.customer.obtain.same. positive.relative.a..data...used.same.evaluation.rate.be.designed.5.its.projects..measure.good.fact.to.average.improvements.both. the.As.excellent.levels.Examples.true.to..or.the.tasks.of.differ. It.variation.measuring.is.their. escalate.average.important.Linearity.final.dominate.impact.causes.measurement.activities.to.caused.their.machines.are. project.measurement. around.two. their.ability.of.repeatability.accurate?” Failure mode and effects Analysis (FmeA) The..versus. in.collection.its.In. agents.that. identifying..graph.a. example.in. same.times.another. an.project. is. . and.surveys. center.through.measurements.In... to.people.of. is.identical.of. criteria. template.percent.time.is.your.measurement.a.in.error.percent.a.fail.components.when. reduced. potential.two.In..actually.outstanding.management.responses.8.graph.when. a.and.a. more.data?”.the.survey.full.include.look.a.are.the. a.However..for.tend.conditions.value.components.. several.component..analysis.As.of.. similar.6.that..refers.using. every.project’s.or.when.this.managers. obtain..the.the.possible.differ.six.measuring.good. in.very.heavily.problem..questions. call.important.training. FMEA.scale.error.show. implies.when. type.variation.did.scales.lower. to.either. Identical. device.time.may. this.extent.if.sixth.cycle.be.measurement.Skew.successive.is.responses.system.an.original.is.evaluation.occur.fair.thing.project’s.. used.standard. differentially..higher.there.on..be.neutral.show. conditions.In.plot. the... systematically. customer.to.appear.cycle. under.second.system.their.range. several.to..a.“How.but.are.support.countermeasures.by.skewed.was.of.and.measurement.typical.an.following.the. of.type. causes. complaints. baseline.when.the.root.Reproducibility.decreased.the.some.small.scale.is.who.evaluations.variable..issues.on.side.that. An.and. review.has.its.if.a.In.is. to..or.it.different.rating.satisfaction.team’s. operational.with.may.of.same.the. used.refers.or.you.would.and.by.measurement..differ.something.metric.for..measurement. more...employees..situation.error.two.result.measurement. analysis.activities..surveys.measurement.that.control.information. example. procedure.been.process. measurement.data.task.process.key.. be..feedback.eliminate.may...±50.have. identical.in.from.people.Kaizen.the.cycle.in.the.organized. failure.more.will.trained.“How.is.chart.a.its. of.over.work.. final.example.these..other.presentations.able.improvements.are.to.. is.. problem.Up-front.the.team.In. The. shown. the. is.but.one. to.the.a.example.may..a.. Figure..ways.over.in. useful.the. to.of.a.the.8.levels:.repeatability.work. linearity. reproducibility.a.only.Kaizen.An.been.if.than.format.of.reinforced.or.reproducibility.evaluate.to.Figure. The. in. measurement.which.average.initial.box.several.the.controls.some.a.used.team.your.may.that.it. project’s.include.is.the.of.measurements.fact.

its.33 _ X=7.modes.30 LCL=1. At... a .5 measuring process improement.example.0 7. the. project. of.prevent.specific. bility. an.5 15. could.the.FMEA.to.make. investigate.called.is.As. would.a.0 Improved Process (Days) 12.an. and. the. end. a.and.. analysis.6.in.not.of.are. collection.calling. activities.to.27 51 5 13 Before 1 25 1 37 51 1 55 49 Moving Range (Days) 8 6 4 2 0 1 1 UCL=7.407 2 2 13 25 37 49 61 73 Observation 85 2 2 __ MR=2. mode..a. a.call.associated. Kaizen.8.countermeasures. . also. team.with. data. to.customer.256  ◾  Lean Six Sigma for the Office Cycle Time (Days) 16 12 8 4 0 1 Before 11 15 1 Individual Moving Range Chart of Cycle Time Reduction (Days) After 33 5 531 56 6 2 6 22 5 522 1 1 1 1 61 73 Observation 1 85 97 After 109 121 UCL=13. use.potential.5 10.267 LCL=0 97 109 121 Reduction of Invoicing Cycle Time 17. Kaizen..0 Before Time Period After Figure 8. failures.a.failure. team. FMEA.an.In.process.failures.5 5. evaluate.process.reservation. during.failure.Figure..

Implement a real-time service analysis system that will dynamically display average customer wait times and customers leaving the queue. Customer call not answered according to standard cycle time. 4 Have agent read back itinerary prior to accepting flight reservation. . 8 8 1 1 8 Make airline reservation. 2 7 112 Actions Recommended Potential Failure Effects S E V O C C D E T R P N Actions Taken Complete S E V O C C D E T R P N Process Step/Part Number Customer calls into call center. Responsible Staffing level not correct. Joe Have agent read back itinerary and send the itinerary by e-mail prior to accepting flight reservation. 1 5 20 Select incorrect times.Process or Product Name: Call Center–Making an Airline Reservation Prepared by: Page 1 of 1 Responsible: FMEA Date (Orig) ______________ (Rev) _____________ Potential Failure Mode Potential Causes Current Controls Joe and IT team. Arrive too early/late. Customer leaves queue. Not confirming departure/ arrival times.6 Failure mode and effects analysis (FmeA) example. Modified software algorithm to automatically send itinerary to customer for review. Analyze staffing levels versus customer average waiting time every week. 4 1 2 8 Implementing Solutions  ◾  257 Figure 8.

causes.to.causes.RPN.causes.a. is.detecting.of.that.workflow..8.seriousness.The.proofing. causes.effective.in.current. standard.a.timely.very.column.example.FMEA.improvement. In. from.verbal.a.columns.The. 1. may.within.effectiveness.process.effect.of. controls.the.related..Figure.call.based.and.reporting.one.scale.improvement. tools.lists.for. A.is.6.of.for.new.causes.6.over.within.the.of.in.skip.column).is.Each. In..or.rating.causes.a.are.whereas. team. As. the.of.a.tools.to.be.calculate.multiplied.agents.incident.information..and.a.help.8.and.waiting.designs.tend.mentioned.this. very.If.also.level.tool.the..of.of.to.1.was.severity.implies.methods.failure.failure.provided.to. 1. a.three.the. this.to.to.or...probability.the.data.Each.higher.rated.1.listed.be.of.call.their.of. the.causes.is.written.as.FMEA.up-front.10.reduce.severity.causes..(we.a. the.in.a.and.preventing.A..leave. answered..failure.were.in.in.risk.customer. RPN.there.having.very.customers.10.FMEA.included: Modifications.for.a.that.process Creation.example. rating...failure.number.such.staffing. range. the.are.scale.properly. failure.seconds.it.a.priority.ensure.minor.lists. information.in.failure.and.effect.layouts Mistake.eliminate.to..in.a.in.10.in.10.the.a.then.and.has.The.Tables.end.eliminate.to.seconds.Some.detecting. cycle.rating..1. within.a. Kaizen.failure.remain.60.. and.the.is.analysis.to.agents.weaker.ineffective.depending.instructions.a.and.or.controls.have.an.earlier. between.of.control.rated.a. relatively. column.travel. other Control tools Other.. The. These..project.is.that.000.These. column.Once.5S.organizational.manner:..both.or. service.would.mistake..failure.prioritization.calls.of.be.not.a.controls.three.failure.answer.implies.adequate.one.collection.are. a.been..modified. (RPN).the.trained.of.6.a.the.for.than.proofing.of.capture. and.process.As.preventing.cause.detection.that.be.team. Figure.effective.and.10.a.of.their. number. of.which.portions.discussed.the. and.impact.structures Elimination.2.and... time.the.shown..others.time.numbers.to..and. failure.258  ◾  Lean Six Sigma for the Office being.mode.1.from.not.in..occurrence. answered.portions.a. actions.are.corrective. level. between.process.potential.a..the.Lean.would.scale.were.relative. result.to.failure.controls.impact. to.6. standard.probabilities.are.the..in.context. The. are. can.answered.on.process.a.cause. a.are.is. effect.could.template.. next.an.may.the..over.on.with.a.and..customer.are.their.prioritized.application. that.its. the.. to.on.call.scales.more.. potential.are.their. project.failure.reduce.template. have.not.queue.methods.serious.is.60. customer.answered.next. than.1. example.inverse.failure.1.the.developed.effect.at.of.occurrence.a.Chapter.column. failure.high.promised.balance.on.detecting.countermeasures. variables.an.effective.potential.a.in. a. not. of.time. Higher.column.In.wait.to. analysis.activities. is.process .The.is.is..controls.and. a. the.and.In.6.useful.current.the.infrequent..RPN.summary.is.evaluated..occurrence.

verify.could..process.and. are.point.be.process.team’s.training.answering. has.in.an.a.metrics Creation.other..once.Kaizen...in.for.the.control Deployment.for.project.be.would.information. control.a. champion.. can. their.could. forward.verbal.the..audits.testing.7.final.sustain. is.Figure.of.new.the.available.agreed-upon.important.project.(Xs). of.identified. quality.variables. This.inputs. We.activities.because.which.process.instructions Quality Control plan Figure.work.presenting. in.of.8.lists.a.. know. shows.to.(huddles) Creation.created.improvement. process.communication.of..design.also.recommendations.to.of.advance..referenced. xample.are. control.and.1.all.example.an. plans.templates.performance.control.owner.into.operational. that.have.Kaizen.described. actions.within.However. Communicating the proposed Changes to management Table.variables.be.necessary.with.being. formats..team.such. owner.process.is.programs Holding.the.a.the.critical. that.controlled.customer.monitoring. Step. been.A.for.input.team’s.to. management.the.Kaizen. the.at.calls.links.4.be.this.and.at.5S Mistake. the.levels..that.team.may.regarding.procedures.event.projects.a.other.output.their. at. Process.. project.other.to.they.recommendations. exist.of. the.performance.Once..equipment Implementation.form..complete.Corrective.new.the. but.information.secure..template.their.bring.methods.reached.of.this.variables. improvements.a.at.customer.be.of. to.paper.the.or. more. detail.has.reporting.step. to. key.invoices.other. improvement.review.of.Kaizen. information. As. move. team.Kaizen.of.necessary.has. in. to.recommendations.the.improvements.in.or. dynamic.inspection.which.a.group. or. issuing.provides.resources. in.measure.written.Implementing Solutions  ◾  259 Purchase.four.and.functions.Lean..time.. by.Kaizen.and.impact.updated.These.plan.and.be. plan.output.methods Creation. a.be..there.of..variables..variables.team’s..of.they.information.statistical.new..step.a.can.control.should..plan. uality.and.that.types.must.the.event.create.to.presented. Quality. .organizational. different.most.team..Also. and.and.exist.7.systems Modifications.root.8.similar.to.describes. and.leaders..quality.the..3.Kaizen.control.cycle.electronic. needs. an.include.found.degrades.or.of. its.both.1.these.in.maintenance. are.of.financial.maintained.information.and.variables.and.time.process.electronic. if..Examples.document.Table.by.to. portion.(Ys).that.are.the. q .project. time.project.meetings.back.causes. e . Figure.should.in.schedule.will.procedures Development. incorporated..it.current.the.to.control. currently.future.as.within.their.output.is.8.up-to-date.If.a.specified.deliverables.point.as.4.proofing.should.7.This.types.findings.their..

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. .

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

0 Figure 8.25.262  ◾  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. 5.5 88.0 94. and 3 Figure 5. 2.8 Communicating the proposed changes to management.8 7 5. Percent .6 10 7.26.1 9 6.27 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 80.6 80. and 5.8 82.6 16 14.7 94.6 100.0 • 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 67.6 67.2 100.4 13 12.4 6 5.

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

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

40 $10.8 10% 1.6 0.8 0.00 $2.9 0.0 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: $14.4 13.80 30% D 1 1 0 0 1 1 1 1 0 1 0 1 1 1 1 1 1 1 1 15 $24.8 2.1 0.0 3.1 4.5 $ 91.performance.50 $4.4 5.8 1.1 1.8 0.5 1.1).8 1.0 10.95 $19.10 Creating metric dashboards (similar to Figure 5.8 4.35 $1.0 2.00 $0.maintain.6 7.to.8 2.7 1.00 Total Cost by Process Step Total Cost ($) 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 0.00 $10.6 13.8 1.1 0.00 $4.team.4 4.8 1.2 20.9 0.0 6.2 5% 0.9 27.70 $8.3 6.8 1.3 18.8 1.it.work.4 99% 97% 95% 99% 97% 99% 98% 95% 93% 98% 99% 96% 97% 99% 94% 99% 97% 98% 92% 94% $27.to.2 9.40 $13.2 4.9 5.1 3.9 19.8 4.enable.6 26.5 1.McGraw-Hill.3 0.status.3 11.mentioned.2 75.0 0.00 $12.3 0.8 0.0 3.6 2.7 0.8 1. and.should.4 3.6 3.3 1.9 4.2 0.9 2.9 1.1 18.appropriate.3 6.their.2 7. Suggested reading Davis.25 $3.New.6 21.15 $0.6 0.0 3. discussion.0 3.5 12.2 4.4 0..4 131.8 1.8 1.6 2.higher-level.55 $7.00 $8.2 1.2 0.3 17.0 18.6 100 % 15.0 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 12.2 2.of.4 0.4 2.03 % T otal Figure 8.6 2.2 2.0 14..4 1.60 $1.Measuring process capability.dashboards.2 0.7 0.Implementing Solutions  ◾  265 16.2 20% 3..4 2.9 0.9 1.8 1.metric.0 2.0 7.0 3.0 3. .96 25% Total Cost C omments T arget to E liminate 3 3 3 2 4 4 3 3 3 4 2 3 2 3 3 3 3 4 2 4 61 1.8 1.5 1.77 $4.0 7.8 5.25 $5.1 14..4 4.9 1.York:.4 1.2 1.72 $27.5 1.3 3.8 5.0 0.74 $5.05 $4.local.8 1.Bothe..60 1.4 3.8 33.5 0.7 10.7 2.and.process.8 1.00 15% C 1 0 1 0 1 1 1 0 1 1 1 0 0 1 0 1 1 1 1 1 14 $30.30 $1.R.1 4.8 1.0 4.8 1.was.corrective.0 30.8 1.0 1.0 8.8 1.the.6 7.6 13.4 2.metrics.5 1.1997.5 1.27 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 1.9 1.1 37.4 $4.2 75.8 1.3 6.0 1.7 5.8 1.0 2.5 12.monitor.actions.5 36.4 2.4 2.8 1.08 $0.8 36 20% 3.a.7 0.5 3.8 1.6 2.27 20% B 0 1 1 1 1 1 0 1 1 1 0 1 1 0 1 1 0 1 1 1 15 $23.9 2.48 $1.50 $5.8 1.6 6.70 $4.6 16.7 374.take.8 10.that.8 3.2 4.4 5.6 0.6 7.5 1.66 $2.7 0.7 7.6 1.6 6.owner.6 35% 5.94 $23.00 $20.6 3.00 $6.6 0.0 4.

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

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

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.

$

International Division

Publications Publication

$

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.

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

.

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

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

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

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

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

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

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

.

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

. c .must.hire.is..case.its.also. to.simulation.particularly.All.have.good.analysis. can.. In.be.to.to.with.work.quantified. requires.readily. finally. to. in.as. a. organizational.engineers. real-world.operational..that. quantification.are. the.the.availability.rules.useful.Simulation. performance.this. next.an..the.system.systems.consult.way. However.and. mapping..it.few. used.mentioned. above.this. dynamic.people.could.days.. occurs..analysts.be..simulation.enable.parameters. lower.on.educational.between.operational. models.models.a.suppliers.simulations.variables. be.between. as.how. is.that.of.would.business.and.in.understand.decision.already. the.Crystal.in.input.to..Kaizen.and. has.simulation.lack. to.output.But.estimating.of. has. This.attained.variables. and.relationships.The.through.process.training..very.work.justification..a. Simulation.also.have.A.or. reation.seminars. model. educational.a.applications.real.complex. simulation. hand. poor. a.the.output. parameters.can.multiple.model.familiar.corporate.industry. a.global. of.individuals.training.methods.the.interrelationships. of.improve.have.its.local.significant..system.is.it.Oracle®.may.received.relationships.and. level.its.simulation.value.exits.to.and.such.need. applied.are.(VSM). software.would.quick.or.but.create.. to.a.in.team.who.including..many. when... of.building.events.knowledge.type.used.as.learn.a..build.are. response.to. .exactly.are.numerous. results.map. work.models.cycle. most.scenarios.In. process.But.may.team’s.engineers.review. relationships.such.available.providing.be..how. a.time.have.it.stream.However.organize.that.into. in.the.model.of.a. observer.reason.known. The.For.develop.models.to. been.virtual. understand..and.system.interrelationships.other.delays.methods.advance.use.clarify.institutions.step.an.unit..create.gain.simulation.be.team.between.basic..several.process. by.that.received. variables. of.a.of.to.of..time..who. changing.rapidly.scenarios. it..simulation.the. at.this.training.a.list.from.in.system’s.methods. type.a.compress.enable.benefit. should.for. delays. between.cost-benefit.an.ways.a.to.training..develop.methodology. into.is.training.a. that.. methodology.first.develop. actual.workflows? A.given. event.team. dynamic.statistical.reason.important..system. ambiguity.organization.to.studies.inputs.a.a.a.This.who.Of.course. But.a.in.experts.of.available.capability.to.using.time.training.create..input.of.the.process.yields.to. to. time.outputs.are.analytical.easy.with.few.organization.also.is.for.Kaizen.seminars.understand.a.operations. levels.quickly.not.the.dynamic. existence.information.of.can.understand.known.and.system’s. an.is.be.VSM. an. resolution.from.industrial.simulation.simulation.would.and.at.simulation.can.Kaizen.286  ◾  Lean Six Sigma for the Office enters.capability..that..among..Kaizen.help. when.. a .transformed.methodology.a.of.been.not.easy. Corporation..admitted.process. measured.As.to. of..that. effect.a.its. organization.this.and. well.known.Ball®.result.. functions.components.evaluate.team.performance.Analysts.Kaizen.for.those.be.a.world.to.group. and.the.to.combination.this. as.of.a.Lean.develop.industrial.model.will.context.this.used.improvement.trained.develop.would. characterize.. As. of.that.. system’s. nalyzing.immediately.performance.to.methods.

two.estimate...model.can.of.only.software.. this.that.building.an.by.not. three-dimensional. process.also. has.that.because.variance.of.may.packages.every.analyst.employees. a.distribution. consists..there.of.times.logistics.of.the.simulation.business.times. In.for.at..applications. operational.using. team. of.as..critical.from. system.a.using.functions. operational..not.simulation.versatile.parameters.may.with. the.operational. inexpensive. can..modeling.duration.times.next.that. of.operation. distribution.been.day.to.as.minimum.is.model. enable.the.and.This.in.. to. has.expense. or...type.a.analyst.also.typical.Also.likely.a.have. the.It. at.both..can.path.estimate.it.workflow.exact.other.model.all..data.critical. any.very.reflect.operation.a. A.applications. .can.an.software..to. can.operational.This. an. Once. context.are.estimated.as.be..duration. for..total. of.initial. specification.is.analytical.an.needed.be. system’s.analytical.models.time.goodness-of-fit.be.workflows.relatively.an.and.distribution.A.as. metrics. functions.the.for.most. initial.been.for.be.is.are.these. easily.distributions. been..work.and.known.needs.of.to.overall.and.manufacturing.this. developed.probability.operation. operation.as. network.rules. maximum. operations.are.cycle. maximum. Kaizen.could.cycle. Once..different.develops.one.the.the.be. manufacturing..days.be.a.certain.team.cycle.if.cycle.estimating.that.off-the-shelf.is.cycle. one-day. time.in.. an.both.to.advantage.estimate.starting. indicate.customized.manufacturing.be.example. distribution.time.organization.adapted. a.applications.used..develop..still.and.an.is.in.simulation.the.to.how. having. that.methods.Ball.this.test.of.by. final.to.new.select.its. team.a. the. These.an.your.models.warehousing.distribution.applied. would.type.an.because. Others.then..has.levels.which.is.. particular.could.for.parallel.the.decision. time.time. a..on.includes. of..capability.operation..As.and. states.relevant.of.significantly.estimate.to. other.comparison. a.nine.the.service.a....requires. models..will. total.will.library.capability.approximate.time. Building. approximation.. can. VSM.some. of. the.operational.a.rule..example.office.distributions.one.similar..a.the.used.operations. library. time.average.the.cycle. relative.well.time.create.fits. workflow. training. through. every.the. the.and.and.experienced.Kaizen. off-the-shelf.The.Appendix 1: Crystal Ball® Software  ◾  287 in.average.research.methodologies.such.simulation.step. series.analyst. path.such. expected.adding.process.approximate.and.used. other..triangular. a.time. cycle.course. with.any. Kaizen.analytical. while.This.an.has. the.by. or.that.one. one.workflows.a.applications.as.of.process.have. can.logistics.systems.highly.functions.system’s..the.a.days. and.build.vary.ten.of. to.Developing.initial.every.for.. cycle. example. every.Crystal.completion. duration.cycle.next.organization. of.probability. of. day. more.an.a.facilitate.quantified. probability.operational..late.and. sequential.An.. of.of. analyst.methods. ten-day.However.capability. rules.estimate. path. software.a. a. include.when.analyst.to.requires.mean. simulation. of.A. process.standard.difficult.started.be.match.of.the.that.step.has.easily.As.process.a.save. As. work.date.by.model.are. of.Also.impact..to.that.created. a.to..in.. development.be.process. metric.operation.system’s.Prices.the.but.of.operation’s. if..time.tasks.pattern. a.a.an.decision. model.to.

recommendations.when.throughput.schedule.a.Lean.to.time.also.from.Figure. common.having.as.pays. reflects.an.system.slack.Kaizen.is. Kaizen.would.example.solutions.few.4.the.to.the.outliers.recall.to. standard. software.team.data. bell-shaped.be.1..of.identify. historical.also.to..a.show.of. Accounts receiable example In.a.000.at.example.cycle.data.against.to.numbers.methods.analyses.simple.be.for.this. have. .shown.also.plans.4.and.team.is.shown.a.point.exponential. and.Crystal. performance.up. An.she. builds.every..distribution..of.relative.that.one.calculate.second..of.simulated.. Chapter.this. after.analysts.a.flow.6. in.the.commonly. A.use.final.process.process.work.how.6.example. its.normal. an.metric’s.discussed. executes.shown.cycle.Ball.distributions.be.shows.another.to.A1..in.eight.is..A1.distribution.to.completed.VSM.Ball.are.operations.analysis.receivable.the..can..triangular. for.1.constant.could.A.ends.the.distributions..create.how.basic.coffee.its.an.that..and. the.a.customer.team’s.common.that.such.distribution.as.process.time.in.quantifies.also.as. curve.to. book. in.be. the. is.customer. well. highly. discussed.as.or. The.improve.Figure.maximum.fitting.which. team’s. a.distribution.the... metrics.is.activities.minimum.of.uniform.areas.be. and.must. summarized.key.Crystal.such.an.Figure.is.a.develops.the.This.occurs.Although.the. exhibits.be..times.shape.an.can.is.1.vending.type.to... components.workflow.A. rework. six.made..cycle. reflecting.is.may. it.the.called.will.uniform. cycle.used.its.a. context. mean.or.A1.Figure.the.In.of.operational.above.be.A1.should. collect. deviation.a.in.We.minimum.relatively. would.level.distribution. .when.analysis.to.maximum.typical.10.its.reworked.in.a.create.button.help.simulations.Ball.distribution.rework.may.machine.better.within..of.probability. the.. lowering.time.288  ◾  Lean Six Sigma for the Office nine. or.rule. the.when..skew.outliers.statistics.accounts. However.distribution. processes.interval.fills. A1.of... istory.the.obtained.rectangular.shown.distributions.use.machine’s.actual.places.order. were. a.receivable.can..described. analyst.common.It. 6. when.This.a. distributions.and. receding.to.create.of.described.interval..its.quantification.cash. presented..a. using.accurately.estimate. a. As.interact.time.there.1.operational. simulation.model. effect.larger.must.at...use.A.of.analytical. Figure.around... cycle.could.use.operations.probability.methods.described.simulation.using..part.been.quantification.completion. Once.As.have.start.quantified.Kaizen.the.within..beyond. exponential.cycle.a. simulation.nine.or.run.customer.operation’s.implement.as. the.VSM.a.and.once.noted.rate. accounts.cup.require.or. and. As.system.of. its.the.show.in..there. the. operation.distributions.decision..are.the.issues.or.that.a.accuracy.rules..distribution. distribution.mean.cycle.estimation.This.compared.all. of.probability..values.using.in.to.improvement. h .scope. a. and. p .it..a.vending. skewed.. that.total. data.of.an.described.pushes.simulation.documents. After.he.set.process.team. metric’s..VSM.functionality.days’.a.a.have.final. office.because.perform.a. model.Figure.known.several.1.been.Kaizen.of. an.performance.empirical.Crystal.more.Decision. Also.example.Figure..symmetrical.approximate.

Accounting System Creates Invoice 7. Invoice creation. Incorrect names. Invoice sent to customer.5 Hours 4. Dev. Invoice is not created due to missing information or is created using inaccurate information.5 Hours Std. Order Is Received in Distribution Center and Processed 3. surplus or damaged items prior to shipment. Failure to discover missing. Customer Places an Order for Several Products 5.1 Hours Typical Issues Incorrect quantity or product is ordered. Invoice sent to wrong customer or delivery not verified by supplier.25 Hours Maximum = .5 Hours 7. Customer Receives Order 8. Order accuracy check prior to shipment. 6.4).1 Accounts receiable simulation: distribution assumptions (similar to Figure 6. Invoice Sent to Customer Order Is Closed Customer 1. Order processing. Uniform Minimum = 8 Hours Maximum = 16 Hours Customer fails to properly receive an order resulting in receipt of damaged items. Order receipt. Distribution Normal Mean . Normal 24 Hours 12 Hours 2 Hours 8. Normal 4 Hours Figure A1. Order sent to customer. addresses item and amounts are entered into the system or incorrectly converted by the system. Order Checked for Accuracy Freight Carrier 4. Normal 8 Hours 4 Hours 3. . Uniform Minimum = . Customer places order. 5. Lognormal 48 Hours 3 Hours Order is lost or potions of the order are lost. Invoice paid by customer. arrive damaged or late. . Order Is Shipped to Customer Accounting 6. Failure to protect order from the environment. Exponential . failure to discover missing or surplus items and related issues.Appendix 1: Crystal Ball® Software  ◾  289 Accounting-Receivables Distribution 2. Invoice Is Paid by Customer Operations 1. 2.

..which.is.40. on.would.would.a.operational.using.of.analysis. cash.of.It.workflow.As.simulation.a.around.Figure.advantage. workflow’s.complicated.be.process. This.by.sending.specification...cycle.calculated.and. impact.a.Kaizen. the.in.working.and.is.The.other.flow.1.analysis.respectfully.simulated.complete.eliminating.an.of.map.by. of.for..statistics.receivable. a. the.analysis.modeling.look.Kaizen.1.example.been..or.Figure.as.that.time.between. shows.hours..In.represents.issues.using.occurrence.of. and.invoices.in.these.. A.A1.in.frequency. high.sensitivity. Crystal.overall. symmetrical.standardized..in.the. shown...represents. are.simulation. analyzed.. from.systems.likely.summarized.only.the.analyzed.maximum.shown.is.cycle.a.of.some. to. that.contrast.to.and.Notice.cycle.Also.customers.from.. relative.the.time.team.Figure.2.were. a..the.Ideally.are.critical..a.the.well.quantitative.a.the.also.the.the.cycle.has..on.that.time.been. receivable.~80. cycle.to.average.to.the.has. some.This.subprocess.of.a.As.shapes.can. metrics.analysis.a.that.summarized. process.information.to.exponential.~80...can. at.that.~98.useful.can.the.as.that.times. distributions.is.for.because.specification. This.cycle. a.Ball’s. metrics.issues.improvement. process.mean. minimum.hours.shown.that.hours.create.for. this.the.enables.show.Kaizen.to.for.to.customers.a.an.of.values.by. the.be.the.cycle.to.decreased.normal.cycle.has.Crystal.would.events.model. time.In.It.this.also.total.values.invoices.for.higher.it. assumptions.on.cost-benefit.compared. effect.investment.fell.of.analysis.operational.a.set..accounts.evaluate.the..as.distributions. skewed.map.of. of. accounts..A1.information.useful.the.sending. associated.on.their.subprocess.various.a. Creating a Simulation model The.customers. very. time.team.also. time.distributions.can..analysis.distribution.path.reduce. be.A1. important. this.be..in.times.that. software. very.of.mean.is.been.the.Ball.that.patterns.each.invoices.note.to.assumed.a. In.probability.the.such.an.As. various.sending.team.simulated.was.A1.reduction. are.by.to.is.as.into.scenarios.4.3.the.Also.that.Figure.total. the..cycle. process.to.statistical.and.Simulation.A1. time. events..every.other.addition.notice.be.cycle.the.value. was. distributions.additional.their. highly.each.their.of.total.. statistic.transformed..impact.percent. perspectives. process.quickly.with. in. process.time. that.shown.receivable.changing.operation.calculated.(VSM).be.receivable.time.accounts.range.in.value.290  ◾  Lean Six Sigma for the Office breakdowns. done.outside.measured.analysis.percent.compared.when..step.the..the.process. team.team.in.used..An.to.process.from.the.the..~58. right.in.aided.cycle.the.is.graph. that.time.. .approach. have.impact.different..process.provides. nalysis.. of. distributions. to.~140.see.on.on.Notice. Kaizen.net.analysis.subprocess.is.by. contrast.for.accounts...(ROI).Figure. using.the.the.example.advantage.of. a. This.cost. a .ways.distribution.Notice. Ball.stream.should. implies.to.each.operations.for.a.workflow.be.Crystal.an.Also.a..cycle.example.cycle. every.in. static.time.we.process.are. evaluate. This.example.120. distribution.would.seen.enable. a.return. yields. These. operational. cycle.times.simulation..orders.Kaizen.

10 0.40 0. www.com –2.00 Normal distribution with parameters: Figure A1.00 40. Dev.00 4.00 12.00 2.00 42.00 . Dev.2 Some Crystal Ball® software statistical distributions.80 –3.00 3.30 0.00 13.00 50.Appendix 1: Crystal Ball® Software  ◾  291 Normal Exponential Probability Probability 0.50 10.00 4.00 6.00 4.00 Exponential (E8) Probability 39.00 20.00 8.00 16.50 0.00 Rate 2.00 54.00 Uniform distribution with parameters: Minimum Maximum Normal (E12) 8.00 0.00 10.crystalball.00 6.70 0.00 11.00 14.20 0. 24. Dev.00 16. Probability –10. Probability 0.00 48.00 10.00 45.00 Normal distribution with parameters: Mean Std.00 57.60 0.50 0.00 30.00 60. Dev.00 6.00 Exponential distribution with parameters: Lognormal distribution with parameters: Uniform Probability 8.00 9.00 51.00 0.00 Mean Std.00 10.00 4.00 48. Normal (E11) Normal distribution with parameters: Mean Std.00 8.00 18. 0.00 Probability Crystal Ball® software is a global business unit of Oracle® Corporation.00 15. Lognormal (F10) 8.00 15.00 2.00 Mean Std.00 0.00 12.00 3. Dev.00 12.00 9.00 Normal distribution with parameters: Mean Std.

of Variability Minimum Maximum Range Width Mean Std. time. then. predicted. of. improvement.07 0.would. than. less. be.process.a.metric.01 0.simulation.45 80.time.of.15 0.the.the. a.understanding.of. studied.team.00 80. This.cycle.that.00 70 60 50 40 30 20 10 0 Frequency Trials Mean Median Mode Standard Deviation Variance Skewness Kurtosis Coeff. to.a.be.~24.process. standard.and. augmenting. workflow.fact.As.05 0..without.00 98.subprocess. time.00 100. contributor.by. invoices..48. analyze.team.14 58. scenarios.to.has.associated.to.example. is. for.crystalball.workflow. Recall. using.identifying.could. subprocess.customers.changing.1.91 139.shipping.the.00 Hours 120.. recommended. within.reductions.292  ◾  Lean Six Sigma for the Office Cycle Time 0.invoices. the.that.times.case.02 0.Kaizen.31 --13.in. deviation. ~12. cycle. cycle.that.orders.00 USL=120.time. stream..43 Crystal Ball® software is a global business unit of Oracle® Corporation.49 182. value.00 60.53 0.of. analysis.simulation.associated. actual.a.average.cycle. reductions.A1.this. Error 1.an.the.can.03 0.an.which.. the.improvement. cycle. various. overall. improvements.com Figure A1.is.56 98.in.sending.Once.cycle.compared. advantage.3 Crystal Ball® software cycle time analysis. was.06 Probability 0.04 0.has...hours.dynamic.with.hours.Figure. sending.04 0.customers.for..07 3.management.business. patterns. customers. time.team. process. shown. that. methods..000.00 LSL=40. .process.Kaizen.missed.and. to.with.an.have.00 Target=80.is. The. in. largest.actually. www. building.a.. a.in.can. hours. versus. process.average. of.00 40.useful.approves..A.

Receive Order 8.0 60. Place Order Distribution Normal Normal Lognormal Uniform Normal Exponential Normal Percentage 80. www. Ship Order 5.0 Operation 7.crystalball.0 20. Process Order 4. Place Order 0.Appendix 1: Crystal Ball® Software  ◾  293 Percentage Time 7. .2 0.1 1. Send Invoice 2. Check Order 1.8 4. Check Order 1.4 Crystal Ball® software sensitiity analysis. Pay Invoice 3.0 Crystal Ball® software is a global business unit of Oracle® Corporation. Ship Order 5. Receive Order 8.0 100.1 4.0 40. Send Invoice 2.0 2.com Figure A1. Process Order 4. Pay Invoice 3.8 7.0 80.

.

project. and.Software.Appendix 2: minitab® Statistical Software and Quality Companion by minitab There. also. similar.brainstorming.the.they.information.it.in.a.However. those.software.and.and.captured.a.information. schedule.collect. by.Sigma.. help.the.using.define. one.creating.but. using.packages..specialized.a.associated. A2.cause-and-effect.mind.1.measure.using.the.and. diagram.capabilities. The.this. project..using..sequential.team.analyze..diagrams.importing.an.Sigma.and.a.building.Specific.such. tools. other.charts.of.words.with.the.managing..activities. ompanion.that. A2.form.Excel. created.and.. shows. information. and.project.a. a.be. 2.report.software. activities.improve.way.be. Figure.in.well..as..of.other.encourages..new..project. be. shown. (DMAIC). can.Minitab..(C&E).numerous.any. to..and.include.include.solution..analysis.1.that.and.does.. project.data.initiative.collection. 295 . and.presentations.in.data. are.the. accumulated.as.analysis.this.include.users.scheduling.forms. example.tools.events.are.problem-solving.the.Sigma’s.and.and.exporting.Other. The.tools.software.templates..force. Quality...from.graphs.Kaizen. These.include. various.provide.book.flexible.many. include.software..come.also.Six.maps. the. from...analyze.. sequential.package.PowerPoint.of.is.project.Six. templates.Kaizen.creating.Minitab™.to..this.the.phases.related..packages.In.C&E.” Figure.a.very.Examples.methodology.collection.that.and.can.“coach.its. Pareto.information.Quality.advantage.or.control..can.use.discussed.all.could..Companion..common.creating. in.particular. C ..methods.The.software.not.reported.reporting.PowerPoint.on.Lean.as. activities.to.data.and.and.project. similar...such.Minitab®.that.most.of.include.As.process.the.activities.structured.a.Six.of.Statistical.is.to.capabilities.It.Lean.tools.or.. methodology.. software.their.as. how.as.an.

.its.statistical.the.analysis.(VSMs).required.In.templates.be.a.improvements.tools.road. a.tools.stakeholder.new.easily.needs. Roadmap®.to.file.phase.A.be. data.required.as.phases.2. activities.should.of.another.can.is.second.charters.in.A2.1.the.as.beyond..some.other.Minitab.infrequently.stream.conduct.shown.and. shown.into.project’s.to.process.audit.charts.similar.of.analyses.specific..integrated.In.map. Kaizen.2..included..these.planner.listing.shown.and.team. shown.and.and.and.many.1 Creating a project schedule using Quality Companion by minitab®.of..The. collection.options. The.analysis.and.of.From.basic.2.tools.Companion.because.collection.. teams.ones.they.Quality.can.of.and.4. Kaizen..the.process. collection.these.project..selecting. and.extensive.using.be.analyses.from.into.“new.results.methods.report.a.Also.includes.templates.plan.advanced.tools.templates.as.and.templates.create.or.If.Sigma. most..Kaizen.by..analysis.Six.book.Companion.A2.This.maps.and.A2.a.Figure. completes.more. a.Software.control.such.to..of.the.Statistical.menu.activities.Another.within.user..project.Software.used.maps.”.from. improvement.enables.and..three..as..discussion.can.a.extensive.the.and.activities.also. ethods.this.are..to.and..appears.follow-up.then. other. phase.quality.the.Statistical.so..be.insert.Figure.and.section.built.PowerPoint.Figure.over.management..list.phases.project’s.is.basic...into..as.list. enables.very.been.Quality.to.in.these.major. information..a.over.1.of.basic.experts.team.tools.in.types.tools.import. analysis.create.Figure.range...addition.event.in.scope.presentation.incorporated.templates. team.value.and.of. m .the.label.data.This.are.financial.incorporated.this.plans.tools.can. various.shown.management.to.list.be..shots.user.from.tools.plans.a.such.the. imported.3.diagrams.map. quality. pull-down..from.prioritized.another.are.Kaizen.“new. and.in.. this.A.Six.Lean.list. Once.assessment.this..and.has. statistical.create. The.screen.a.are.to.pull-down.initiatives.C&E.These.available...project’s.”.in. in.methods.and..Sigma.296  ◾  Lean Six Sigma for the Office Figure A2.list.used.Figure.activities.data.are. by.and.or. its.which.brought.menu.These. . a.Minitab.one.Gantt.well.develops..road.These.are.are.risk.

. local..Companion.this.Portions...management.in. .the.the.be.phased. C . slides.Statistical. integrated.Minitab.presentation.property..printed.edited. this.respective.. within.products.expected. process. ompanion.trademarks. Quality.Minitab..various.and.logos..taken.2 incorporating Quality Companion’s lean forms and templates. has.reserved.their.on.contained. 2.are.Inc. book.Quality.In.rights.of. team.levels.remains.. exclusive. marks. Presentation.at.with. are.Quality.Software. Minitab.All. of.of..can.Minitab.in. easily.2’s. developed. be.because.audience.the.See.created. present.output.. work. and.input.Minitab.Roadmap.All.presentation. recommendations.for.other.and.are.exclusive.. its.is. software.all. team’s. .Inc.this.develop. reated.from. function.the.very.and. can.and.other.property.more.slides.The.2. is.services.minutes.to.useful. to.information. the.for.All.depending. owner.detail.the. the.Appendix 2: Minitab® Statistical Software  ◾  297 Figure A2..and.remain. to.property. resentation.the.context.referenced.of.of.Inc. fact-based.com. Companion.and. completely.a. p .a.owners.company’s.permission. c .material.copyright.of.

.298  ◾  Lean Six Sigma for the Office Figure A2. Figure A2.4 Creating powerpoint presentations using Quality Companion.3 incorporating Six Sigma tools from minitab® into Quality Companion.

Table.the.1.is.and.3.1.Six.1.1. Table. Figure.Business.projects.and.Analysis Typical.alignment.1.Customer.2. Generic. Figure.Process. Prioritizing.Metric.system. Project.Do.2.1. What. Analytical.1.analysis.high-level.sheet.Three.2.Deploy.goals.of.Strategies Deployment. Table.2.a. Table.to.financial.Responsibilities Reducing. Table.Kaizen. Project.6.Compare? Comparing.3..2.a. Table.Definitions 299 .Kaizen. Figure.4.identification—breaking.1.statements—profit-and-loss.the.charter. Figure.elements.1.Complexity How.2. Figure. Project.for.1.Sigma.Project.6.(VOC) Chapter 2 Figure.statements—balance. Figure. Table.Appendix 3: Figures and tables Chapter 1 Figure.2.Kaizen? Strategic.Voice.2.1.2.Lean. Table.System.4.of.2..important.2.statement.5.Lean.5.Improvement Translating.identification—process.Steps Building.example. Ten.3.1. Table.financial. Figure. Table.Levels.Deployment.2.7.Roles.Events. Generic.down. How.2.Case.1.in.Examples Key.3.of.1.

Kaizen.measurements.of. Figure.workflows.batches.1.j.14.major. Figure.2.Designs.15.2.3.5S.3. 7.customer.Bottleneck.12.18.Lean. 7.major.13.1.b.Reduce.the. Figure.22.j.6. and.7... 7.unnecessary. 9.2.Product.3. Figure.state.3.time.3. Figure.networks. Figure.Robust.performance.Voice.“Single.4.Six.3.management.3.lot.types. 4.300  ◾  Lean Six Sigma for the Office Chapter 3 Figure.3. Figure.“Zero.(VOC).3. 3. Reduce..3.stream.g. Figure..philosophy—the..High.configurations. 7.Create.3.20.maps..Total.3.d.operations.communication.using.sizes.d.Event.Kickoff.3.Steps.checklist.a.d.time. 7.Work 7.4.System 2. Figure. 10.Sigma.3. JIT.19.Quality.Continually.visual.(JIT).the.3.2.. 5. Figure.workflows. 8.calculation..6. Table.controls.(TPM).5.Prepare.c.Lean.5.calculation—future.8.within.update. Figure.9.Setup.in.h.waste. Table.Event Kaizen.process.3. Chapter 4 Figure.Link. Figure.to. Figure.Eliminate..Exchange. Takt.Create.Kaizen.Implement.Kanban.1.4. 6.Reorganize.support.Balance..and. 7.waste. Table.10.material.3.(SMED).Defects” 7.a.of. Takt.3.time..3. 1.letter.technologies.3.21. 7. Kaizen.3.Reduce.4.Level. Figure.scheduling. Figure.to.Standardized.Implement.event..Process..f. Figure.1.Preventive.and. Evaluation.systems. 7.Supplier.11..pull. 7.Demand. 7. Ten. Kaizen...3.3.process.4.Mixed-model.of.17.3.Create.16.3.calculation—original.3.of..value. Table.Die” 7.Lean.Agenda .just-in-time.3.systems—eliminate. Figure.3.3.event.3. Table. Table.e. Figure.Implementing.Complexity 7. 1.4.4.Mistake.3. Table. Figure.i.seven.event.. “Preventive…Autonomous…Predictive” Table. Figure.flow. Figure.a..1.(VSMs)..Deploy.offices.Key. Figure.proofing.operations.1. Figure.for.and. Takt.Transfer.teams..Maintenance.Time.process.2..physical.Minute.of.

stream.5.Sigma.22. Why.25. Product.(data. Figure. Figure. Figure.Conduct.stream. Summary.28.late.9).for.data.4)..analysis.29.5.a.12.Key. High.Tools.5.5.and.5.5.for. Figure.5.Inventory.level. Figure.worksheet.Service.5.complexity.Kaizen.5.5.inventory. Figure.5.5.level.5.4.Event Important.4.analysis. Figure.5.Figure.series.of.5.5.24.(data.mapping.Strategies.9. Figure.from.Event.worksheet.16.reasons.Exercise Checklist How. Histogram. Figure.high.Necessary.26.Map 5.level. Figure. Table.steps.23.Stream.5.5.investment—third.5. C&E.Effective.inventory.from.Collection. Table.analysis.(data.Map? 10.of.from.11.3.reduction.5. Box.to.of.5.Figure.Figure.Brown-Paper.(data.4). High.21.7). Table.1. Figure.Appendix 3: Figures and Tables  ◾  301 Table.investment.3.value.Create.4.Value.investment—first.worksheet.an.graph.5.10. Control.Figure.diagram.shadowing.chart.13.6.diagram.Performance. Major.projects.map.charts. Figure.Operations Chapter 5 Figure.2.(data.inventory. Figure. Table. Process.5.8.5.level.. C&E.analysis.14. Figure.a. Analysis.at. Brown-paper.deliveries. Figure.worksheet.Methods Data.(similar.from.Figure.creating.Six. Pareto.canceled.5.5.mapping.for.investment—second.measurements. Process.5.5.for.15.Compare . Figure. Three.30.and.5.a. Figure.major. Job.Figure.7). 4.5. 2. Figure.from. Table.17. Improvement.in.9).job.7.Lean.Facilitation.Stream.for.5.shadowing. Figure.mapping—SIPOC.reasons.18.major.work.to.5. Brown-paper.5.audit.5.from. Example:.7). Table. Figure.4. Scatter.4.opportunity.3.5.a.5.analysis. Figure.waste. Process.several.5.Value. Figure.5.inventory. Major. Figure.5. Figure.matrix—prioritizing. High.5.2. Figure.4.5.Figure.5.19. Table.5.Characteristics. Figure.operation. Figure. Major. Figure. Waste.plot.analysis.(data.27.reasons. Spaghetti.1.Requirements.5.by.3. Time.jobs.orders.20. Figure.plot.the. Process.

Figure.8.Strategy Countermeasures.product.analysis.proposed.and.4.Job.analysis. Figure.to.and.2:.6.7.product.distributed.6.1.performance.5.Improvement.5. Example.Project.6.3.7. Table. Figure. Example. Figure.8.1.Cost-benefit. 5.Deliveries Chapter 7 Figure.Financial..stakeholders. Table.6.for.2.variables.2.variables. Figure.normally.binomially.5.5..Case.9.Impact.26.charts.analysis. Figure.Supplier.302  ◾  Lean Six Sigma for the Office Table. Table.6.6.show.projects.research.. Table.product. Figure.stakeholder. Common.product.Effectiveness.1. Major.7.7.1:.2. Figure.forecasting.1.5.analysis:.changes. Control.to. 2.Accounts.improvements.(continuous).5..elements.Root.Resistance..8.analysis.6. Figure.planning. Root.4:.Communication.receivable.Tool.of.7.Analysis.Changes Control.process. Kaizen.change. Table. Example.7..Change Chapter 8 Figure.graphics.Process.3.Collected. Prioritizing.analysis.30).7. Figure.research.Cause—Late.1.Readiness Important.marketing.5.marketing.6.Transition.7.3.6. Table.key.from.1.management.28.5.3.Shadowing Chapter 6 Figure.3:.process.marketing. Figure.2.6.8. Change. Figure.research.charts. Example. Figure. Use.7. Example.for. Figure.Business.(pass/fail).4. Figure.Scheduling.Data. 4.and.7.4th-Level.Cause.7.2. Figure.7.7.New.. 7.employees.10.4.Analysis Example:.6.(Figures.a.New.distributed.6.6. Figure.Analyzing. 1..of.(similar.7.at.6.6. 6. Table.6:.. Example.and.22).cause.changes. Five-Why.2.6.for. .(SPM). Table.project—new.3.new.Levels.development.Questions Building. Figure.Key.Sustainability Root.6. 3. Control.Infrastructure..Hiring..5:.

tools.Charts Control.cycle.Lean. Crystal.management.distributed. Incorporating. Figure.charts.a.and. Control.8.Chart Present.9.schedule.time.Companion’s.A1.Ball®. Figure.behaviors. Table.8.analysis.receivable.Control.(counts).across. Key.9. Figure.Control.9.3.software. Companion. Failure.Minitab®.software.into.3.mode.3.sensitivity. Table. Table. Creating.(similar.generic.PowerPoint.Follow-Up.distribution.A1.interpretation.and.8.8.Tools Key.to.7.variables. Figure. Figure.improvement. Sharing.A2. Table.5.6.presentations.Questions Control.from.Quality. Figure. Control.plan.8. Figure.using.metric.8.1).10.4).6.2. Figure.4.3.to. Figure.migration.Poisson.software.8.4.8.8.Create.for. Table.knowledge.Sigma.quality.5.Event.2.7.(FMEA).assumptions.8. Figure.the.4. Competency. Appendix 2 Figure.to.simulation:.8.A2.8. Table. Incorporating.2.example.1. Minitab®.Crystal.9.Figure.8.A2.list.using.6. Some.8.3. Figure. Communicating.5.Six.Quality.1.Control. Creating.statistical. Figure.Findings.A2.Overview How. Creating.analysis.Ball®.a.to. Measuring.Activities Chapter 9 Figure.changes.new. Figure.1. Accounts.Requirements Important.Chart. Figure. Crystal.Organization Improvement.4.activity.8.Control Appendix 1 Figure.project.Quality.Quality. Transferring.9.chart.forms.8.analysis.A1. Reinforcing.dashboards. Table.proposed. Follow-up.Plan.Control.2.Ball®. Table.Companion.templates.Figure.by.Concepts. A.the.effects.world. .distributions.8. Table.1.of. Figure.8.Process.process.to. (similar.Appendix 3: Figures and Tables  ◾  303 Figure.1.A1.control.Companion.Improvement.

.

.analytical.a.information.common.A.variable. concepts.basic. and. compare.a.by.chart.is. due. sort.sustain.needed.factors.three.chart:.understand. Analysis.(APIs):.collected. tools.system:.data.capacity:.and.used.assets.the. A.based.of.Kano.to.capacity.develop.need.transformation. to. amounts.between.system. between.work. to. Activation:.of.A. by.created. 305 .causal. Benchmarking:..to.to.in.programming.methodology.phase:.on.inefficiencies. that.discrete.phase.methodology. Batch-and-queue.is.all.of.different.monitors.its..products.data. capacity.Six.. than.Using. Arrow.A.usually.sheet:.factors.only.that.process.is.in.transfer. p .to.theme. Affinity. Lean.that.pass/fail.Used.management.of. data.the.local.systems. techniques.glossary 5S.e.identify.software.A.it.third.process.used. methods.The. As-is. organize. Basic. Agile.show. encourage.breakdowns. the.a. should.software.production. which.graphical.standardize. groups. based. large.techniques:.process.for.when.needs.resource..project.control.tools.control.process.(APM):.“walking.than.interfaces.to.map:.teams.factored.obtain. to. system. into.a. of.or.project.liabilities.evaluation.to.discrete.. less.manufacturing. relationships. be. natural.with.applying.statement.depiction. Attribute.DMAIC.less.of.data:.shine.into.that.One.system.moved. techniques.the. diagram:.and.suppliers.Capacity. nexpected.A.design. using.to.management. order.types.records. be. that.expect.that.and. A..need:..is. of.of. Analyze. Used.calculation. capacity:.and. available. Actual.. set.normal.” Assessment:.Lean.The. erformance. qualitatively.attributes.The. i.counts. Balance.to.another.of.one.which.many. that.on.relationships.quantified. Available..financial. Application.diagram:.performance.Sigma.met.the.process.lots.spatial. u .A.system.in.the.Customers.

are.customer. system.or.monitors.software. A.a. workflow. Cause-and-effect. several.be.process. in. Business. other.to. of.storage.the.services. can..offline.a. intelligence.analysis:.paying. resource:.process.that.modeling. a.set.that.between.and.system.financial.(C&E).that.a.necessary.utilization:.of. Breakthrough.flow. that. that.statement:. .material. Capacity.software.a. A.tool..receipt.for. of.whether. requirements.the.the.amount. produce.amount..without.shows.amount.. external.standard.variance:.capacity.i.process.voice.meet.variation. matrix.diagrams:. Planning. Capacity-constrained.and. Cause-and-effect.e. The.matrix:.system. operations:.takt.performance.a. equipment.ensuring. the.monitoring..relationships. A.sample.Changing.system.the.utilized.process. rocess. and.disruption.payment..provide.workflows.integrates.of. Business.material.process.The.voice. fourth. Capacity. to.is.a. plot:.and.information.software.change. and.be.their.management.or.in.to.and.or.required. graphical.time.for. planning.difference.amount. tool.that.The..using.put.ratio.management.system. analyzes.useful.(BMA):.and.and.improvement. data.A. expenses.free. provides.. bottleneck. and.deviations.that.of. information.process.workflow.between.causes.conditions. Cash.the. requirements:.suite.A.it.process.facilities. in.A..labor.not.graphical.information. required. data.meet.several.cash.system.time.among.software.metrics:. Capacity.time.of.. Business.for.A.cycle.A.of.or.budgeted.other.ratio:.Ys.control. customer. p .many.process.process.through.process.of. quartiles.of. a.between.their.and. Business. available.simulated.(VOP). process.The. second.analyses.or.performance.operational. Capability.(BPM):.A. Capability. first. material.to. prioritize.from. unit.cycle:. (CRP):.process.compare.the. valued. data.IT.statement.necessary.change..that.The.A.manage.(BPMS):. Budget.data.unit.to.time.management:.step.period.concepts.qualitative. to. and.specification.requirements. material.of.or.control.customer.by.produce.effect. amount.changes.a.across. if. value-added.by. used.software.tools.system.Xs.methods.and.of.discontinuous.of.of. Capacity:.to.platforms. Business.integrates.measured.estimates.(VOC). Box. amount.allows. Operations.306  ◾  Lean Six Sigma for the Office Bottleneck. to.can. capacity.measure. inputs. A.and.limits. Cash-to-cash.that. analysis. (BI):.activity.the.that. labor.products..and.. third.of.(BAM):.(Y).to. of. Business.customer.used.(Xs).several. showing. by.the.bottlenecks..median.workflow. collection.systems. resource. Business.optimizes. the.The.A.A.actual.status.the.information.improvement:.the.outputs. software.range. become.and.

process.or. back.equipment.to. not.a. metric.A.quality.process. time. Cluster. between. occur. estimated.in.e.which..count.organization.sustained.that.create.variation.graphical.maintenance:.geography.process.random.the.that.such.key. pecial. time.variables.and.phase.(CTQ):. Control.attempt.as. external.input. other. Compensating.from.Poisson..map:.analysis:.barriers. prevented..service.no. Continuous-flow. if..from.transitioned. or. Customer.monitors. importance.customer. value:. common.by.The.in. questions. cost.sampling. process.on.prevent.can. used.not. ensure.natural. service. chart.project.be..are. and.estimated.sample.The.environment:.. Data. product. used.are.or.time. method.unexpected.set.A.on.requirement.of.based.the. units.tools.drawn.systems.time.it.over.extended.process.a. to.practice.phase:. be.A.person. .project.population. Cost.situation. process. chart:.population. their. Cpk:.control.its.currently.The.owner.perceived.which.to. will.and.strategies:.to.. A.A. and. with. off-target.workflow. do.activities.over.fifth. capability.exists. distinguish. Cost.which. Control.various. function.feature.Combining. Cultural.oil. Common. weaknesses.equal.process.from. potential.improvements.to. avoidance:. survey:.A..one.sample.average.the. (KPIVs).controlled.a.basic.information.methods.distribution.of.removes.cause. to. Champion:. metrics. Data.is.control.Six.that. an.and. s .which.to. series.The.methods:.using. utility.process.. Corrective.ways. A. short-term. A. when.an.variation.tools.Various.sample.Drawing.are. Current. using.tools.process.a. asks.to. employees.true.representation. Continuous.new.A.in.. organization.threats.sampling:. to.capability.when. that.target. strengths.level.The.fifth.data.a. more.subgroup.the.are. is.collection:.four. Control.data.by.a. Data.improvements.together.people.size.opportunities.important.discrete. not.an.grouping.obtain.refining.as.A.methods.and.product.are.as. adversely. Cp:.process. of.on.a.chart.to. Critical. its.a..failures. the.from.of.external. A.to.is. of.The.Sigma.begins.impact. that.Glossary  ◾  307 c-Chart:. a.of. The.variation..designed..improvement:. an.based.ensure.process.improvement.and.phase.that.there.bringing. Cultural.process.data.to. i. opinion.customer.Process. metric:. project.in.change:.answer. and.who.accuracy:. Control:. information.deployed.that.DMAIC.where.biased.shortterm.behaviors.

for.to.failure.Six. a.performance.minimum.customer.cost. and.and. capacity.fail.based.308  ◾  Lean Six Sigma for the Office Decision.An.(DFMEA):.000.and. Design.future.can.a.how. Demand.function. of.defects.unit.several.non-salary. for. of.The.requirement.which. and. scheduling. the.pull:. ensure.and.DMAIC.time.to.defined.is.specific.estimating.customer.and.alternative. forecasted.expected.ensure.upstream.labor:..other.time.combination.opportunity. system.payoffs.total.demand.this.The.by.unit.a.process.demand. schedule.A.in.analysis. standards. concepts.design. business.component.period.first.and..and.scheduling. maximum.The.one.future.design’s.per.calculated. statistics:.demand.month).more. process.several.in. which.designs.and.modularize.per.to.its.capability. Demand. to.dividing.or. attain.A.probabilities.components.aggregation:.of. Design.standards:. Demand.total.meet.process.of.to.A. relative.the.that.scorecard:.(BOM).to. Define.all.The.project.ratio.process.of.is.mathematical. Direct.demand.through.multiplying. count.to.tree:.method.labor.for.at.methods. used.attempts.actual.Demand.assign.requirements. efficiency.form.demand.methodology.on.a.information.The.locations.the.a. methods. information.is.one. Demand. set.related.used.demand:.benefits. A.mode.to.on.a.explained.and.operations.a.identify. Defects. the.representing.process.Information.meet.The. Sigma. 100.quality. percent.of. .by. The.to. schedule.causes.to.of. Defect.services.tool. Summarized.summarization.normalized.management:.period.metric.to.(DFM):.mathematical.by. Dependent.forecast:.one.is.design.requirements. used.decisions. Design.rules. to..(DPU):.(DPMO):.sample. bill.related.failure.The. central. location.and. at. used. Design.the.1.phase. is. Six.Manufacturing.A.(usually. level.dispersion.accepted.expense.A.relative.sample.of.materials.and.of.variables.using.in.and. demand.profit-and-loss. tools. techniques.customer.a.related. and.used..statement. Descriptive. (independent).of.units.relative.related.real-time.relative.million.models.meet. in.a. Design. to. (usually.opportunities. capacity:.variable:.Sigma.DPU.000.requirements. can.that.operations.designs.effects.several.nonconformance. DFSS.items.combining.a.fit.by.that.the. Dependent.designs.. sampled.customer. push:.A.variable.by.of.to.month). Defect:.to.simplify.demand.estimating.by.phase:.in.which.independent. to. The. (DFSS):. Demand.

risk.increases. . Effectiveness:.and.consideration.supply. Failure.variable.in.income.to.(EVA):.analyze.quantity.viewpoints.to.metrics.quantity.built.work.customer.that.placed.organizations.process. controls.Glossary  ◾  309 Disaggregating:.analysis.holding.processes. and.. the.team:.together.Kano.brought.for.decreases.which.The.by.of.design.A.work.between.its.larger. measure.a.insourcing.things.or.versus.ship. Economic.organization.that.scale:.The.metric:.information.protons.e.workflow.calculated.of. relationship.valuation:.An.systems.performance.electronic.order. diverse.of.An.system.that.used. Electronic.metric.demographics.several. Financial.order:.failure.products.are.board:.the.for.per.cost. mode.shows. Finite. delighted. FIFO. Six.unique.a.of. cash.control.situation.loading:.improvement.execute.to.in.supplier.manages.opportunities.other.between. five-phase.ready.or.the.the.software.inventory.with.need:.of.people.One. effects.modes.customers.value.showing.and. problem-solving.has.balances.which.a.increases. Excess.A.shareholders.in.system.or.evaluates.product. the..the.improvement.optimally.is. Excitement..(available. E-supply:..and.Inventory..added.An.their. Inventory. DMAIC:..(EOQ):.receive.the.control. Enterprise. useful.supply.causes.savings.a.legacy.an. i.in.as.the.First-in-first-out.which.cost.built.chain.revenue. DPMO:..developing.and. its.process.that.analysis:. inventory:.customer. Economic.(EIS):.demand.Separate.their.increases. Financial.an.into.variation. Diverse.external.packaged. on-target.processes.A.and.successful.board. quantities.outsourcing. Entitlement.a. inventory.good.that.to. Engineer.information.to.to.services.breaking..benefits.initiative.manage. tool.of.for. exceeding. Economy.to.are..on.types.estimates.software.a.system. expected. and.and.designed.An.completely.million.. Display.e...capacity). order.Electronic. demand.(EDI):. specific.flow.Information.show.(EAI):.IT.inventory.projects.A.cost.right.group.information. analytical. analysis.components..needs.ordering.allows.to.project.key.short-term. An.product. during.exchange.to.being.sales..and.which. between. Finished.levels.interchange.a.process.Systems. that.The.and.customers.of.done. and.data.and.Scheduling. center. define. (FMEA):.best.that.systems.justification:.chain.cost. Enabler.skills.financial. The.A.investment. shows.management. Sigma.are.improve.improve..in.if.A.inventory.been.of.integration.A. Enterprise. methodology.situation.having.systems.project.areas.characteristic.inventory:.of.in.application.system.having.of.i.process.Defects.three.initiative:.volume.for.project.cycle.

objectives.a. quantitative.its.that.A. through. first.The.the.before. Functional. time.external. First.to. has. work.that.process.by.chart.products:.on. team:.used.future. maturation. High-performance.barriers.even. members.calculated.The.the.system:.work.its.summarizes.The.for. time. Forecast:. Gross.horizon:.The.received.minus.of.percent. work.belt:.countermeasures. in.A.system.maturation.new.based.period.a. Force.one.models.within.Sigma..and. and.first.number.detailed.product.profit.products. an.The.25.who. of.Six.a. team.method.How..of. team.forecast.of.their.of.operation.reconciliation:.if.necessary.estimate.people.adjustments.in. used.that.of.come. with.uses.or.observations. Globalization:.root. Forecasting.of.process. A.into. used. or.all.decision.serve.current.to.of. future. are. out. First-pass.continuous.stage.revenue.demand.used.A.to.dispersion. Forecasting. works.The. Forecasting.to.and.the.queuing.as.rework. to.statistical.(one.and.quartile:.month).team.process.system. valuation.world. show. each. A.at. areas.showing.and.month).work.stage:.field. across. within. factors.functions.products:.historical. in.the.(one. A.analyze. Functionality:.period.eliminate.to. diverse.method. Functional.achieves.products.organization.function.that.by.below.other. Green.first. situation. Forming.process.a.by.stages. predict.to.A.which.sold.location.a.demand.handoff.which. four. which.based.they. events.breakdowns.process. s .forecasting.graphically.different.the.sequence.program.estimating.is.and.organizations. set. inventory. ystems.causes.manufacture. Gantt.times. operations.tasks. .scheduling:.cost. A.shows. from. system. Different.time.specialist.in.out.materials.analysis:.310  ◾  Lean Six Sigma for the Office First. organization.map:.model.values.responsibilities.compete. map.requirements.process.to.economic. in.subtracting.time.goods.estimating. that. Forecasting.scheduling. Histogram:.The.process..margin:.from.(FCFS):.by.A.A. process. prioritization.interface:.and. Functional.function.central. been.a.single. Forecasting. departments.yield:.consistently.point.patterns.method.taxes. agree.of.smoothing.schedule.at. qualitative.a.demand.finish.on.the.units.forecast.sample. project.chart:. excluding.tasks.The. Groupthink:.of.the. workflow.for.in.A.evolutionary.data. Forward.prioritization. aving. silos:.used.product. First.improvement.tools.new.start.are.of.functions.in.a. other.number.The. h .period.meeting. methods.to.within. consistently.demand.service. (FIFO):. future.software.time.process.process.ensure. all.An.incorrect.between.A.

separates. system. Interrelationship.demand. bringing. special.identify.cost.or.basic.of.for. Inventory.chain:.that.Used. A. JIT.to.average.phase.divided.goods.output. work.amount. (KPIVs).cycle.calculated. function.requirements.input.factors.decentralization:. disaggregating:.that.X. Standards. Integrated. Information.is.a. system.by.(available.to.supply.chart:.turns:. describing.calculates. International.a.to.at.show.on.to.make-to-stock.variables.key. method.requirements.supply.system:.to. Inventory. system.locates.dividing.age:.or.Standards.customer.investment. graphical. ISO.that.in. records.money. of. lements.goods.changed. average. A.meet. a.levels.it. process. inventory.cause.finished. Income.chain.technology.sold.locations.many. improve.qualitatively. information.inventory.from.linked.product.or.providing.center.Glossary  ◾  311 Historical.quantities.on-hand.by.provide.time. e .quality. describing. to. Indirect.a.different. high. quality.dependent. statement.input. shop:. its. used.control.needed.inventory.Cost. underlying.required.potential..continuous.demand:.diversity. associated.cost.relationships. .to.A.demand:.system.period.in.consideration.product. House.service. Organization.A.common.turnover:.The. improvement. low. factors.target.information. Insourcing:.investment:. and. and.relative.spatial.diagram:.time.and. production. of.data.capacity). time.Y. ISO. volumes.optimize.making.of.Actual.products.turnover.actually.demand.work.that.series. A.demand.services.of. Taking.materials.for.A. Infinite. to. lower.it.matrices:. productivity. (HOQ):.customer.loading:.to.maintain. that.inventory.for. Inventory.cause.goods.describing.to.performed.9000:. by.model:. income.of.International.which.variation.processing. Job. work. International. organization.and.A. 9001:. Independent.required. type.divided. Hybrid.system.information.the.sold.real-time.or.by.the.ratio. show.and. into.where. ISO.nonsubgrouped.Six. deployment. Improve. variables. by.inventory.The.on. anticipation.between.(COGS).or.higher.Scheduling.service. Individual. product.variables. with. 9004:.are.correlate.status.success. standard.quality. A. producing. statement:.sending.365. Input/output.demand.by.Matrices.the.that.in.process.to. quality.and. characterized.best. Standards.supply. standard. Organization. product. Inventory.fourth. of.information.service.model.labor:.several.days.Labor.for.chart. financial.levels.investment.is.phase:.without.of.for.standard.by.item.Customer.customer. Inventory. practice. to.Organization. expenses. an.by.time.systems.Just-in-time.Sigma.meet.a.over.A.location.causal.

time.and. Kanban.setup.of.correlated.of.and.to.analysis:.A.based. schedule.classifies.production.(LSL):..material.. create.(KPOV):. for.Baldrige.period.time. in.services.exhibits.input. replacement.Last-in-first-out.of.can. Lean:.. Lead-time.to.enterprise:.that.to.limit..organization.. of.that.financial.demand.decomposing.broken.organizations.award.cell:.variation.customer.of.valuation:. satisfy.to. of. (MPS):. Lead-time.that.Lower.variables. to. for. Master.supply.312  ◾  Lean Six Sigma for the Office Just. MRPII.components:. designed.process.be. Mass.specification.that. needed.variation:.elements.signal.process. components.Dependent. Lead-time.as. impact. for.best-inclass. A. production. Lead.specification. aggregates. Lean.inventory.customer.time.other.time. to.A.inspection.performance.a.dispersion.having.order. makes.but.. Long-term.when. simple. service. inventory.within.calculation:.time.can.minimum. transport.work.The.needs.Sets. Make.a.in.systems.performance.attached.lead.idle.status. reducing.system.Kanbans.a.are.measurements:.(KPIV):.based.in.key.and.commonality.(JIT):..layout.that...evaluate.Lean.quantity. process.variables.process.output.effectiveness.system.orders.quality.The. Lower.have.level. Make. Lead-time.variable.diversity.produces.A..or.process.process.lead. together. process. standardized. products.into.production.long.chain.time:.times.A.Independent.parts. manufacturing. Kitting:.Lead.time.product.principles.used.work.output.the. p .variables..valuation..order:. of.(KPOVs).variation:. customization:. System.and.The.higher-level. system. that.A.or.amount.Kanban. .process.the.to.demand.task.system.A.over. the. Lean.of. rocesses.to. a.a.basic.Award:.excitement.presented.be. use..an.resources.on.of.processing.process.sign. that.and.time.variable.show.value.WIP.deployment. system.directly. Kanban:. The..series.into.information.An.operational. A.inventory.level.uses.customer. bringing. time. that. kits. stock:.on.L..complete. recommending.to.that. Malcolm.chain:.customer.to.significant.supply.a.transportation. A.customer. LIFO..time. demand. and.The.that. Key.tasks. and. Kano:.the.and.voice.on.products.There. process. mistake-proofed.waiting.on.its. firm.the.are.system. storage.A..work. within.all.of.Lean. Key. The.into.in.which.required.and.applications.cell.Lean.(VOC).completion.of.based.inventory. production.customer.is. reduction:.a.a.A. system.impacts. Lean. lower-level.metrics. service. design.needs. non-value-adding.arrives.a. L-shaped.arranged.inventory.

The.and.when.a.its.statistic. that.them.setups.variation.useful.more.generated.characteristic.of.phase. used. between.system.by. from. all.set.MRPII. central.item’s. calculated.to.scheduling:.range.collect.allows.be.based.(error).suppliers.discriminate.more.over.or.verify. A.to.established.randomly.on.or.are.on.methods. Variation.machines).and.it.of.Kanban.or. track.series.prevent. each.distribution. that.type. supply.location. Measurement.capability.second.in.of. between.on. measured.same.percentage.co-located.series.the.delivery. when.are.methods.run:. by.to. using. the.tool. with.based.to.number.low-cost.over.A.sources.A.(1/10.The.of.status.used.person.information. record.an.measurement.reorders. Mistake. variation.analysis.measure.Sigma. Milk.inventory.error.and.the.a.measurement. to.in. A. is.work.as. the.characteristic.samples. Metric. repeatability:.time.statistic.on.equal. work.in.standards.its.several.forecasting.be. Monte.dashboard:.process. Mixed-model.systems. that. by. changes. a. Measure.phase:. measure. mallest.thing. reorder.motions.several.measure.measured.two. Measurement. process.Carlo.discrete. Mean.The.which. person. Median:.error. (machine). s . metrics. its.measured.same. Measurement..ability.The. variable.on. Min/max. made.system.obtain.their. Measurement.resolution:.proofing:.system.information. by.the.on.accuracy.the. (MRPII):.through.the. MPS.defects.a.absolute. planning.scheduling.of.error.tools.linearity:.in.of.A. Mean:.ability.detect.the. metric.and.can.that. and.side.a.customers.scheduling.which.ability. to. same.correct.identify.system.to.related.and.in.the.is.system.errors.machine).times.transformed.ability. demand.metrics. matrix.different.A.system.observations.of.accuracy:.value.characteristic.number.into. characteristic.rule).over. Metric.a.that.reference. location.being.calculated.A. break.to.ability.by. into.people.services. summing. and.frequent.or.explodes. and.to.(or.separating. . requirements.The. provide.time.continuous.to.the. Analysis.percent.which.and. with. statistic.Six.An.inventory.technique.near. comparing. low. studies:. average. System.to.that.products. taking.stability:.A.either.A.(MAPE):.A.many.of.on.system.reproducibility:.simulation:.that. Measurement. Micromotion. 50.each.(MSA):.quantities. metric.time. uses. their. down.measure.point.(or. cameras.variation. measurements.used.forecasting. observations.measurement.measured.of. numbers.ability.system:.to.A. scorecard:.central.entire. Measurement.The. Metric:.mathematical.characteristic. Measurement. dividing.Glossary  ◾  313 Master.the.

are.Firm. product.lead.used.system. between. linkage:.containing.has. or. and.which.planning.map. status.inputs. fail.in. compares. service.quantity. achieved. Operations.outputs.dependent.that.The.and.team.consequences.be. Ensuring. incoming. initiative.to.impact.decisions. Norming. logistic.goals.the. a.. dependent. Order.(TPM).of. umbrella.begin.to.without.operational.products.within. 100. Non-value-adding. metrics:. consistent.supply. A. target.a.received.binomially.dependent. functions.into.work. regression. services.variable.be.data.high-level.that.maintain.percent. Opportunity:. r . model. customers. that.objectives...method.is.distribution.system.necessary.material. Normality.stage:.which.process. goodness-of-fit.its. Operational.team.explain. Optimum.analyze.state.value-adding. information. a. of. assumed.independent.of. Operational. pass.chart.its.of.not.demand. indicate. A.a.do.members.boundaries.management:.suppliers. determine.group.are.or.meet. to.necessary.goals.and.balancing:. to. Order. a.variation. operational. system.Every.from. How. .changing.maturation.people.tools.meet.of.overview:.that.or.contributes. Open.must. a. Operational.quality. np-Chart:. to.used. sequential.constant. n .levels.Inventory. Operational. The.a.produce.A.use.the. Nominal. Six.a.A. Metrics. relative.supplier’s. either. other.the.distributed.linear.customer.Operations.the.agreedupon.workflow. process.subgroups.at.maintenance. that.on.methods. quantities.314  ◾  Lean Six Sigma for the Office Multivari.and. An.agree. ormal.in.process.to. test:.several. across.regression:.productive.meet.system:.provide.demand. tasks.operation. Operational.method.variables.only. time-to-time.to.to.not.strategy:. or. efficiency:. functional.chart:. which.be.stage.process.the.necessarily.study.or.includes. the. an. excellence:.shipment. in. transform.to. well.who.based. characteristic.that.discrete.team.orders.cross-functional.takt.defects.map:. (T):. Operational. Obsolete.The.performance. relevant.objectives.financial.that.not.in. regression:. financial.coefficients.the.time.to.A.the.actions.operational.(NVA).A.a.does.want.A.that.A. Sigma.When. On-time. a.process.of. be. Lean. logistic.field. sample. of. A.on.to. elative.time.for.of..labels.on.delivery:. variable.which.used.A.operations:.variable.in. interval. that.graphical.flow.cannot. cycle.book:.best. test.to. Nonlinear.control. must.is. metrics. can.of..mix. including.inventory:. than.third. Operational. order.objectives.to.time. total.

gap:. Plan-do-check-act:.capacity.target.methods.and. long-term.occurs. by.stage.between.of.objectives. divided.equal. continually..000.at.backlog:.business.performance.variation.be.evaluation..for. Preventive. found. Periodic. A.a. capability.fourth.description. when.toward.solution:. specific. sample.project.up. and.Deming. is.due.a. Kano.various.for. schemes.that.controlled. supplier.the. is.that.collected.not.per.it. to.project. review.constraints.successful.conditions.=.A.customer.to.metric. is.equal. i.(POS):.or.concepts.which.chart:.operational.their.team. need:..used.a.that.investment. works.000.in.system.systems.data:.×.to.a. improved.process. process.point. An.chart. PPM:.production.quantities. total.Program.e. ensure..inventory.by.Metrics.to. model. another. from. Performance.must.multiplied.monitored. Pilot.is.an.that..could.initial. in. Problem. process.A. under. checking.A.1.The. error:.control.for.changes.in. to.number. in. number.A. when.metric.to. The.orders. p-Chart:..problem.provides.for. inventory.in. Performance.000.of.ordering. Percent. estimated.organization.order.(PPM):. productivity.actual.The.designed.which..variation.the.it.common. the.Data. capability.difference. differentiate. inventory.of.analysis. Pp:.of.manufactured. Proactive.weighting.to.proposed.demand.within. A.fraction. Ppk:. (PIM):.actual.product.solving.and. the.plan. . helps. using.process. sending.are.data. that.problem. system:.required. to.and.counts.A. defects. the.verbal.be.terms. the.A.1.recover.of.test.the. estimated.tool.as.adjusts.The.Glossary  ◾  315 Outsourcing:. organizations. PERT:. of.to. suppliers.are. Payback:.a.that.years. work. descending.of. The.financial. increase.not. at.by.goals.either. other.maintenance:.level.sale.and.of.that.subgroups.million. model.target.the.A.million.categories.measurements:. using.an. of.be. model.are.review. An.versus.distributed.collects.to.stage:.team. Pareto.metric:.100.in.matrices:. process.maturation.Quantity.discrete.and. and.and.process.on.per.which.process.arranged.system.Used. Prioritization. sample. Parts. process. Performance. one. Primary. inventory.tools.to.in. solved.technique.a.reorder.be.prioritize.cycle.10%. Perpetual. Point. process.change.to.binomially.used. Performing. long-term.must.a.100.by.by.but..of.to.statement:.PPM..or.Parts.graphical. inventory. which. are.sales.decisions.actively. on-target.project.based. Overdue.available. off-target. The.use.released..in.including.measure.A.times. inventory. need. inventory.data..and.according.million.bring.

effects.metrics.to. or. duration.ratio.A.performance.monitor. budgets.process. usually. Project.major.system.proliferation:.made. operations.show. Project.a.to.that.a.The.and.activity.all.to.(P/L):. Product.the.in.A. provides.of.to.work. by. either.used.operation.information.starting.to.metric.organizations.against.work.product. and.the. Production. to.Many.mapping:.been.phases. Project. technique:.correlates. or.measure.path.of.shows.compare.failure.products.that.group:. combination.key.quantity. resources.having.by.critical.outflows.A. A.specifications.another. and.statement.in.schedule.demand.material. to.used. Productivity:. A.movement.to. document.find. electronic. Project.and.A.of. to. charter:.section. plan:. in.centers. Project.used. inputs. of.over.completion.or.Kanban.business.that.quantity.if.including. transfers. Process.used.milestone:. system.contribution.close. that..:.A.and.income.the. used.project..growth.used.an. materials.. brought.has.the.of.margin.service. and.through.success.that.materials.A.of.ending.cash... Product.the.A. justification.metric:.demand.major.performance. divided.capability:.of.financial.systems. tools.and.financial. project. scheduling.active.its.their.assigned. Project.value.on. of.operational.profit.been.activities.identification:..to. set.control.can.Kanban:.for.time.of. Product. information.set.information.life. . Project.through.build. methodology.(PAC):. Profit.index:.together.and.correctly. schedules..process.satisfaction.316  ◾  Lean Six Sigma for the Office Process.increase..units.or. of.method.to.complete.a.to. to.how. work.a.of. cash.costs.set. evaluation.manufacturing.project.gaps. batch:.products.and.dates.floor. techniques.to. format.used.time. project. outputs.analyzes.organization.customer.of. management:.shop.states. deployment.in. Project.to.mode. show. review. Profitability.The.A. Production.operations.projects:.product.project. Process.cycle:.schedule.a.and.and.maturity.present.business.when.of.organizational. A.a.decline.project.value. productivity.A.to.objective:.Projects.specific.financial. Process.stakeholder.to. Project. probabilistic.have.used.method.through.little. that.the.a.project. A.improvement.remain.goes. benefit.work.A.activity:.collection.the.projects.terms. expressed.identifying. Process. year-over-year.or..been.present.process.allow.loss. subsequent.network’s.A.function.processed.method. A.charter.similar. paper. measure.An.project.the. used. or.project.characteristics.having.have.tasks.to.fail. manage.of.provide.a.process. tasks. A.inflows.introduction.project. signal.

Calculated.that.the.money.of.receive.system:. to.provides.goals.mean. tools.point.deviation.into..returns. from. the.complete.subgroup.versus.done.objectives.fitted.(RTY):.information.must.every.sample.a.that. alternatives. A.uses.Materials.scheduling.A.assets.according. warranty.schedule.mean.The.A.no.drawn. material.as.over. necessary. process.that.be.time. Push. which.the.data. deployment. Reactive.scenario.must. of.and. order.has. Root.that.necessary..which.scheduling.inventory. to. (QFD):.the.occurring.(ROP):.defects.available.actual.calculated.A.scheduling:.Net.to.resources:.bias. benefit.as.work.elements. Random.system.volunteer.development.product.a. been. documentation.in.from.square.and.an.form. the.samples.in.with.root. indicating.based. Return.investment.to.phase:.the. plan:.customer.a.on.various. predict. methods. future. of. resource.of.scheduling.total.values. produces.tasks.error.operation. work.the.the. enables. rely. ranges. external. translate.returned.by. business.square. in. to.the. chart. the. and. are.analyzed.VOC.that.sampling:.without.quantity.visual.(ROI):.once.a.A. important.charges.than.work. minus.must.logistics:. Pugh. inventory:. control. Rational.demand.expected.be.of.summed.the.of..of.and.scheduling.and. The.each.local.production.times. and.created.an.throughput. Forecasts.sampling:.which. forecasts:.or.to.situation.environment. of.value.system..according. upplier. at.customers.at.external.process.features. a.it.project.system. s .the.had.of.prototypes. matrix:.controlled. Quantitative.more.usage.Operations.in.response.of.evaluation.collects. A.master.planning:.divided.(RMSD):. Quality. several.differences.to.to.something. used. A. Prototype.complaints.to.in. against.forecasting.demand. received.(QRM):.manufacturing.the.forecast.minimum.lead.that. chart:. to. Project. that. an.A. the.the.the.subgroup.forecast. models. selection:. Inventory.when. A.on.A.phase.Glossary  ◾  317 Project. a. on.manufacturing. identifying.A. combination.intervals. Reorder.be. that.between.The.test.income.for. equals.to.in. Pull. range.manufacturing.time.yield. of.receipt..project.process.MRPII.than. to. control.Information. Rework:.associated. that.done. Range.on.and. c .strategic.first-pass.smaller. system.from. compared. tool.daily. Project. through.schedule.of. maximum.the. mathematical.and. yields.model’s.statistic.due.time.which.complete.A. baseline.multiplicand. . has.control.lead. product.difference.customer.specifications.population.system. Quality.scheduling. Raw.goods. Reverse. Quick.method.sampling. Residual:. Rolled.of.labor. be.orders.data:.A.actual. ustomer. function.internal.

exchange.or. Sample.around.process.procedures. A.root.for. metric..in.for.primary.time. chart.variation:.units.Acronym.the.Useful. time.decrease.of.of. changes.The.improvement.a.amount.Acronym.capacity.the.needed.planning:.work..318  ◾  Lean Six Sigma for the Office Rough-cut.below.schedule. standard. Second.capability.continuous.algorithms:.of.due.on.orders.by..increase.the.supplier-input-process-output-customer..index:. or.stock:.of. Scheduling.Mathematical.time.a.square..cell:.level:. Safety-stock.a.from.patterns.map:..system.of. changeovers.for. are.workflow.on.a.analysis.or.A.time.with. Sample. Short-term.requirements.for. exchange.do.times. measure.of. dependent.analyze.(SOPs):.the.and. quantity. series.of.metric.against.units.customer.a. Inventory.observations.units.way.The. to.process.A.constraints.depiction. calculated.a.of.accuracy.variation.graphical.The..Variation. negative. Seasonal. reduce.Sigma:.of.larger.demand.samples. based.of.define. prevent.operating. Single.quartile:. set.operations.arranged.for. in.governmentally.data. factor.a.The.future. of. S-shaped. Sample.two.that.short-term.estimate.variation.level.project’s.his.time.financial.deviation:. calculation:.that.to.sample. based.Act:.is. to.minute.in.A. Seasonal.of.of. consequences.50. used. Sarbane–Oxley. A.A.and.that.and. job.expressed.process.Calculated.patterns.obtaining.the.lead.variables.standard. observations. A.the.quantity.variation.number.kept. to.The.characterized. Six.supply.are.process.to. of..from. SMED:.process.and. SIPOC:.estimate.acting.removed. to. time.by.point.disclosure. as. analyze. Service.tool.her.series.An.plot:.orders. period.graphical.level:.used.metric. used.models.S. (SMED):.operational.at.to. metric:.mean.models. .lead-time. techniques.inventory.improve. Sampling:.levels.control.series. Sigma.at.phases:.A.component:.and.of.around.determine.the.root. expressed.single.observations.or.mean:.arranged.which.A.population.non-value-adding.capacity.in. data.work.order.a. chart:. Should-be.to. Scatter.percent.percentage.planning:. Safety.time.the.their.by. of.die.other. Secondary.A.the.that.periodic.demand.a.on.limited.process.A.safety-stock.as.the. project.best.five.divided.identify.the.of.as.seasonal..mean.receive.time.demand.plots.Procedures. Standard.job.An.variance:.sum.The. times.cell. service. variation. dies.component.layout.of.constant.help.will. Run. Sales.mandated. each.program.series. which.that.square.deviation.an. minute.coordinating.a.resources.

maturation.of.in.a.at. are.Used.component:.that.manufacture.down:. metrics.to.project’s.system.minimal.strategic. objectives. that.on.used.service.other.operations.to. output.selected. can.Strengths. Tree. drawn.The.that.the.lower-level.time. of.from.management’s. Throughput:.second.subgroup. model. time:.organization.where. map. Systematic.item.for.of.price.threats.method.arranged.stage. showing.that.shows.population.profit.55. subtracting.time. sampling. Stocking. b .within.A.more.Determining.lead.available.work.determines.to.opportunities.the. are.time.flow. Transfer.cumulative.build.sample.solving.unit.cycle. sampling:. schedules.and.goals. sampling:. The. and.senior.U.is. A.it.of.series.at.observations.selection:. to.receipt.many. and..A.time.machines.a.at. in.and. must.method.variable.external. in. of.A.methods.team.A.align.showing.labor.by.the.organizations. A.A.sell.product. quantified.data. Takt.and.maintenance.changes.The.a.a.The.which. Trend.and.predetermined.objectives. the. series.graph:.an.problems. input. population.stored. customer.vary.series:.observation.order.every. Third-party.moves. unit..cell.. Strategic. type.throughout.how.product.taken.between.series.out.the.as.one.project.margin.calculation.The.process.and.A.one.a.of.costing:.goals.relationships.into.a.Outsourcing.solutions. .sampling:.ensure. SWOT.analysis:.for. produced.The. of.logistics:.to.specific.stage:..new. process.Poisson.layout.to.chart.or.is.sampling.to.and.which..problem. map:. from.(TPM):.higher-.(TRIZ):.A.a. with.the.quartile:.which.cell:.time. technique.time.a.map.units. observations.Glossary  ◾  319 Statistical.set.diagram:. which.downstream. time.which.which.are.analogous.sample.time.percent.time.the.inventive.time.location:.and.an.subgroups. one.how.variable.to.percentage.discovered.team.series. which.of.expenses. Time. a.average.production. Storming.or.customer.a.in.below.of.from.from.previously.A.that.organization.a.objectives.work.distributed. Time.payment.variation. methods.A.an.A. specify. are. Stratified.of. is. used.processes.paying. Third.alignment.control.desired.graphical.tool. Strategic.A.productive.component.of. to.will. Time.having.functions.projects..point. meet. Target. U-shaped.units.A. be.time.takes.in.of.batch:. disagrees.each. how.to.goals.subgroup. set.structured.nth.over. be.brainstorming. to. Total. Takt. roken.change.ensuring. Theory.size.arranged.to. over.place.to.apply.calculation:.the.material.immediately.analysis. A. System.maintained.a.sequentially.and.ensure.weaknesses. u-Chart:.of.technique.fence:.

that.the.seen.improvements.customer. Sigma. h .Operations.mapping.ensure.inflation.A. Value. that.elements:.Dependent. level.current.utility. A.customer.calculates.and.currently. design. translated.goals.disruptions. product. when..mapping. a.in.process. into.Graphics.projects.assets.A.that.independent.and.system.location.workplace.in.describing.to.usefulness.of. Voice. not. the.minus.of.material.into.the.the.the.status.its.status.collinearity.the.Financial.existence.a.material.be.and. customer.. to.continuously. Value.immediately.or.schedule. must. evaluate.have.in.considered.the. used.task:. Inventory.at.value.variables.a.be.customer.relative. a.(variation). to. Ys:.Goals.are.metric.objectives.(VA):. output. owning. acts.assigned.320  ◾  Lean Six Sigma for the Office Unidentified.process.used.displays.product’s.A.price.of. within.do.degree.glance. distributed.customer.a.which.information. process.specifications’. Working. but. or.(KPOVs).and. Virtual.capability.of.importance. specification.fence.capital:.used. (DFSS).of.a.to.control. (VOC):.variables.objectives.statistic.system. dispersion.in. Customer. variables. and.to.at.stream. Xs:.be.convey. impact.of.put.process.of.time.voice.factor.can.in.(VIF):.Characteristic-by-characteristic.correlated.process.status.process.central. the.a. Visual.orders:.function. to.that. aving. (USL):. for.(VOP):.for. Voice.system.regard.to. flows.the.directly. Variable.Current. b . Value-adding. Work-in-process.consist. customer’s.a. phase.visual.controls:. uffer.easily.displays:. process. capacity. Six.These.operational.control.operations. fourth.and..process.A.measured. Voice.pay. requirements. phase:.A. have.variables. needed. variables.and.solution. upper.looking.element. or. specifications. is. Design.customer. Visual.group.desires.in.against. Having.feature.levels.that. Variance.the.charts.evaluate.for. inventory:. key.chart:.product.that. significant.service.flow. Unplanned. for.time. on.between. Visual.can.(VSM):.by. capacity:.time.within.through.without.liabilities.(VOB):.not.their.workplace. limit.A.to.business. (VOC).. Independent. available. the. characteristic. Upper.. Utility:.determined.workplace:.that.the. . Validate.of.a.Orders. The. lead.product.which.a. as. of. that. are.

.Buy. 105.278 Business.modeling..service.278 Business. standards.management.278 .120.104.(BOM).58 Average.188..and. criteria..index A Accountability.... transfer. mapping.intelligence..improving.(AIAG)...and.212 Box.and.. waiting.King.Group.278 Business.and.workflows.282 Brand..benefits. process.process.metrics. bottleneck....receivable.239 .146.....87 Balance.workflows.126.288 Benchmarking.123.21 Accounts.awareness.204 .....monitoring.38 321 .and.202.203..235 Actual..model.134 .46.plot.tasks.assumptions.processes.management.105.53 .15.208 Black.....systems.suite...23...296 Automation.16... 120.. simulation:.169.Action.14.utilization.153..distribution.147.(AHT).23 .. photocopiers.work.85–86 ..149–150. methods...184...43 Accounts.85–86.202 .39 Asset..52. analyzing.level...handling..example.48 Business..and.52 Best.management.103...improvement.material.event. 227..changing. process.52 Basic.process..flow. simulation.8–9 Apathy..156 ..of.and.123 Balance.280..key.and...233...59..135....147 ..goals..(BMA).122 Bill.capacity. Kaizen.operations.148 Bureaucracies.191.22 Bell-shaped..240 ..of.202–203.67 Alignment.process.170. organizational.capacity.activities.142 Bottleneck..curve...115 Accounting.269 Business.57 ..material..4 Assessment.94 Airport.(BPM)..checklist.46....239 Available.(BPMS).28 Best-in-class. targets..149 .122 ...288 Activity..belt.workflows.(BAM).105 B Back-office.batches.payable.organizational..289 .. Kaizen.time..team.. five.and. strategic.management..189 Accounting.obtaining.sheet.105 Automotive..57.84–86 .240 .274.277 .breakdowns..46 Brown-paper.. process.147 ..135 .objectives..62.182 ....63 Behaviors.Industry.278 Business..characteristics..120.100 Audits..analysis.needs.conditions..activity.. process..102 Business...check-in.29...(BI)...exercise.skill.232 Burger..

services. organizational.variables.process..charts.23.28.and... Kaizen.for..222 .175 C-charts..studies..charts.and. unnecessary.165 ..procedures..234 .and.33 Control...236.sampling.migration..or.172. infrastructure.30 .282 . key.recognition...process..Lean..219 Change. process.250 .softwear.244–245 .225 .activities..in.212 .. for. communication..20 .model. key...and.planning...change.building..flow.organizational.274 .workflows.232 .184 .67. Minitab®..engineering. control.operations. 65–66 ... individual-moving.workforce.support...factors. Kaizen.teams.. readiness..of.(BVA).. Kaizen.and.295.Six.208 Consensus-based.67 ..for.223... interpretation.296 ..and. Crystal..of.orders.to. c-charts.198 Capital.effective.stakeholders..time.a. (continuous).252 Change .236.75 . process..management.and.(SMED). (pass/fail).. project..37.(CE).collection.(IT).statistical.overview..prioritizing.&.workflow.Kaizen.46 Checklists.71 Change.245 .distributed.174 ..cultures.222 .247 .233 Consultants..114 Cluster.and.246 .....322  ◾  Index Business.38 Complexity....and.metrics..resistance.tools. prioritizing.219–222 .32 .268.system.and.227–228 ..252 ..events.reducing.249 .38 . calculations.and.22.stream.235..centers..248 .rewards....61 Canceled...125 ...key.value-adding.45 Cashflow. creating.69 .distributed.of. Lean. organizational..software.Six.Sigma. reduce.232 Change.173 . opportunities..and.improvement.164 . information.41 Cash..255..... seven.technology..team.237 Communication.management..233 .(C.diagrams...system..... conflicting.alignment....of. reducing....charts.249 .229–232 .64–66.analysis.161 China. cultural.and.272 Communication.278 Continuous. for...282 .technology.readiness..236 .and.152 Common.. Lean. value.and.... Kaizen.223–224 .67 .eliminating. performance..products.245 C Call..48–49 Competency.20.245 .. overview. 6.analysis.222..282 .and.improvement..271 Competitors.systems. reducing.map.transition. identifying.and...in.concepts.process.91 ..reasons.flow.184.and.223–224 Change.235 .barriers.analysis.210–211 Communication.product..business...activities..case. change. 215.projects.244..supplier.and. corporate...for.162 Compensating.231 .28 .in..180. activities.stakeholder.281 .106 .219–238..projects.36 Cause-and-effect.range.Ball®.operations .(IT).Sigma.. scheduling.expenditure.96 .236 Comparison.164 .219. processes...278 Channel.and.team. process..to.and. bureaucracy.for.margin....268 Case..Lean..and. avoiding. key..172–174.231 . data.226 .74.247.setup. p-charts..and.binominally.initiative.(VSM). cost-benefit.. international.increased.64 Concurrent.48 Cash..E)..121 .. strategy. information.226.gross...26 .160.. format.concepts.. work.analysis..11.priorities.improving. control.normally. lack.7 .variables..and.improvement.77 .

259 .graph..or..satisfaction. failure.241.82.products.questions.stakeholder...data.242–243...259 . r-charts..sold.plan.. long.239.and.253 ...operational.71....288 . transfer. satisfaction..distributed.methods.281 .effects.73.and. implementing.diagrams.of.258 .46.286.times.263 ..of..259 ..290 .plot.232 .. cause-and-effect..259 Core.245 .impact.meetings.avoidance..289...reduction.87 .249 .of.and.292 .258.level.shadowing.. 258 .tools.172–174 ..233 .219. equipment.259 .241 Control. implementation..chart.of.250 ..improvement...38 Customers.227–228.process.of.64 Cost..improving.software...190 Customer-facing.distributions.and..designs.characteristics..137 .287.tools...147 .batches.and. training. mistake.inspection.up.Index  ◾  323 .and...events. elimination..testing..259 ..deliveries.analysis.variables.team. purchase.work.metrics.40 ..calculating. group...214. 288 Customer...222 .organizational.. root.285.cause.(VSM).55 Crystal.methods.and.cause—late..reporting.map. high.245 . structures..226..(CTQ).11.37 Control. implementing.211. inventory.of.stream..245 Control...148.&. supplier.a.136.27 Critical-to-quality.migration.. process.layouts.245. variation.patterns.259 .197...38 Cycle....value.77 ..of.290–292 .financial.analysis.down. value.147 Critical-to-quality..systems. errors.and..164 .. building..250–251..and.43.285–294 . control.process.verbal.reporting.258 . specialized..(FMEA)..map..278 ..245 .48..261 .time.of.41.analysis.root.solutions..technology.new.E). modification.and..process.the. sensitivity.or..259 .263.... analysis..36.of..274.limits.120. key....(C.audits.. X-bar.collection...systems.of.instructions.293 . types.mode.. steps.and.solutions.175–176 .242 .(CTQ)...5S..38 Customer.166 Cost-benefit.and.290 .236–237.165–166 .231.229 Cost..87 d Data. new. written...(IT).. Lean.procedures.flow. 263–264 .analysis.exercise.and...258 . process.222 .and. five-why. new. Kaizen..visual..analysis..288. and.(COGS).Ball®..of.sustainability. 289 Countermeasures. histogram.. new.of.demand. value.245 . for.analysis. control.. cycle..285..258 .and.and..282..167 .226..and.149–150 . key...4th..analysis.design.services.(VSM). Kaizen. 259 . requirements.. requirements..modified. maintenance.tools..194.charts.279 .286.proofing..22..programs.255 .analysis.of.information.. statistical.other.analysis.251 ... modification.. complaints.141–184..92.46 Customer.and.analysis.and.for.291 .tools.setting..portions. control. cycle. changing.31 ..and...operations.64 Core.250 Control. box.of.times. effectiveness.impact.and.199 ..levels.223. at.types.188 ...296 .228. job.240 .169 . interviewing.286 ..goods.. business. 255 ..259 .177–181 ... sensitivity..194–196 ..(huddles)...and. brown-paper. information.282 ....and. reducing.Poisson. 200. Lean..288 .62 .stream.

events..170 .change.200 Finance.service.151 .facilitation.points.11 Event.143 Data.low.priority.178.12 ..minimizing.analysis..(FMEA)..and..296 .. exponential..191 Expense.rate..for.causes.10–16..and..296 Defects..turnover.. risk.analysis..characterization.reports. targets.258 Failure..269 Downtime...roles.chart...Sigma.104.93 . templates. level..plot....130 Event.210 .151..prevention.department.40. template.series.89 Error.execution.language. level.for.. bottom-up. spreadsheets..12...(DFM).map.121.52.data.15..analyze.31 Excel...percentages.89.191 Failure.255.and.of.. methods.. methods..responsibilities.demand.154 .methods..66 Design...90 .operations. top-down.14.36 F Facilitators.66 Design...rates. standardized.continuous.31 .13 Design.and.and...295 Dell. methods.organizational.221.288 Diversity.160–162 ..facilitator.123 Equipment .reduction.....simplification.mode. variation..analysis.132–133 .288 .Sigma.229.258 .163 ..66.209 Empowerment.... process.195 Error.graph. variation.154 .67.....264 ...and.product.222 . patterns.tools..loading.....in.137..36 Exception. process..(equipment.of. example.95 . hierarchical..Six.options..19 Enterprise..255–257.methods..planner.288 ..integration. spaghetti.reports.. 240. value.158 .modes...37 e Economic.effects. tools.development.mapping—SIPOC..diagram.168 .of. Kaizen.pricing.(VSM).90 .measure..94 .mode....standardization.(EAI)..131–135 .training.(EVA).value.impact.reducing.. control.of..and.(DFSS).analysis.19.170–171 .....application..methods..31 Deployment.or.269 Distributions...257 ..280 Deployment. 67 Design.87..people).rating..types. classifying.94–95. purchasing.improve.11. Pareto. scatter.117..46 Design.106. normal.105.added.198..5.55.. aligned..119 Financial.324  ◾  Index ..61 Define..116.strategies.115 Finance..high..Manufacturing.of.for..9 E-mail..and.256 Failure.66 Demand .(DMAIC).258 Failure.process.40 Deployment...89.conditions. uniform..12 .67 .234 Deployment.in..services.104 Employee.stream. 135 Drumbeat..139 . time..of ..and.15 Everyday. in.effects.time.130 Fact-based.98...200 Finance.151–159 ...failure.champion..leaders..and.collection. methodology. common..Six.16...278 Entitlement.. operations.and.14 Deployment.288 ..12..project.. prioritizing.280 Deployment..222 English..295 .(RPN)...and.12.. (FMEA).25..196 Employee...222 . process.(DFSS).290 .errors.....66 Design.

168 Human.82 .89..charts).change..show.280 Financial..14 h Harvard..209 .financial..in.metrics. Kaizen.191 .167 ..map. standardization.and.. through.193 Green.examples..81.66 Implementation.282 .opportunities.285 .and...234 ..36 Financial....and..202..objectives...quality..Kaizen..risks.improvement..225.165 Follow-up..232.. 145.resources.standardizing.breaking...54 Generic. technological.....using..implementing.new.22. building..53 Financial..level.19 Hiring..31.and.risks.80 ..236 ... 247....process.219–276 . reward. Kaizen..negative..201.137.(I-MR......233 ...261–262 “Functional. reinforcing..operational.53 Global..outsourcing. scheduling..233 ..261. worksheet. organizational.32 Information.improvement.235. alignment..metrics.of..and. statements.43.8.282 .and..team.supply..80–81.113.and.282 Incentives..and.methodologies.224 ..process.risks. process.32 Improvement.road..risks.in.48..46.positive.89 Hindi.296 Generic.operational.assessments...150 ... cultural.and. skew.. identifying.23 . identifying.267–276 Improvement.. customer.3–110.167–168. process.Business.(5S). identifying..46 Financial.19 Goals.278 ..202 Five-S....221 India..82 Five-why.shining.172.sheet.233 . self-discipline....39 High......of.32.....financial... processes.208.events.143..test.233 . project.. process.and.212 .workflow.risks. supplier.detection.. changing.24 Financial...272 i Immediate..Review. (for.233 .. economic..setting...195.behaviors. 258..214 Financial.and.down.improvement.behaviors.business.and..risks.55.253 Information.teams.factors.127.statements—profit-and-loss. 41–42 Goodness-of-fit.team.a.to..25 . process..statements—balance.233 ..29.recommendations.for.workflows..in...32 Global..233 Implementing..... regulatory..264 .prioritizing.174 Improvement.234 .improvement. implementation.Index  ◾  325 Financial.recognition.57.115 .209 ..defect.114 Individual-moving..of... sorting.275 Global.silos”.charts.range..209 .(sorting.analysis.184.chains.activities.219–238 ...230 High.173.(HR).follow-up.167–168.analyzing. sustaining).activities.125 .200–201.122.teams.process.90 .22 . change.forecasting..23 .209.elimination..event..reporting.change..breakdowns.190 g Gantt..167.breakdowns.high-level... 184.235..165–166.methods.charts. process.solutions.expert.48 Financial.flow.belt.workflows.208–209.projects.systems.53 Improvement.263 Improvement. steps.solutions).278 .language.service.projects.case.systems.287 Graphics.activities. order..statements.and..166.impact...and.209 Histogram.system.reports..38–39..

.239 .designs.sizes.data. communication...82–83 ..time. as.and.and.analysis.. analysis.process.eliminate..182 Inventory.. building.78–79 .. apply.87–88 .configurations.major.. major.Internet.demand..247..systems. work. obsolete.92 International.59 .proofing.analyzing.137 .cycle.53 . excess..134.77. implementing.105.14.105 .standardized.97..80–81 .175–176. stable. efficiency.135.tools.157 .work.networks..flow..level.(IT).level.analysis.60 Inventory.and.candidates.prioritized. reduce.128 . apply.59.80.(JIT)..76 .94.preventive.and.84–86 .external... root.operations. high. mistake.and..improvement. change. deployment.326  ◾  Index Information.....of..turns.26 ..165.60 .239 .84 .235 .9004.27 Internal.of.of.shadowing.operations.112.for.105 Infrastructure... third.and....268 Initiatives.... 120. defining..payment...116 .methods.. level.272 Internal. data.improving.188 Internal. communication. problem.of. operational.quality.collection.. conducting.and. first..technology.physical.tasks.136 . balanced.stability..requirements..15.time.92 Job.of. philosophy.and. waste.in.and.4.136 .collection.198 .investment..24.and.19–20. canceled. service.38 . continuous..data.251 J Japan.utilization.method.on.. reduction.9000.30. link.high .234.... ISO...90–91 .management..(ISO).77 .waste.investment......time. ISO.reasons.124.222.198 .103.Standards.material.237.137 .to.improvement.179 .implementing. 275.180 .7 Kaizen.methods..change.and.vs. analyze.and..77 .operational...177 .for..service.227 .. supplier...189 .of..letter.specifications..37 .workflows.137 .142 .analysis..135.191 .111–218.22.level. process..and.182 .shadowing.seven..76 K Kaizen.setup.cause..a.the.(SMED).9001.prescreening.Institute...systems. control.37 Invoice.demand... worksheet.and.times.reduction. 5S.data.times...92–93 Just-in-time.204 ..278–281 .158 Job.233..case.. improvements. prioritizing.178 ..event.240 Internet...31 ....24..4–5.125.projects. analysis...203 Invoicing...changes.66 Interorganizational.ration.mistake-proofing.196 .... reduce... second.. asset.96–98 ..60.of.269 Inventory...cycle.. balance.183 Inventory.131.maintenance..125 . standardization...types.process..121 .195 .and....176 Just.orders. checklist.business.124.and.(Ys).5S.32 ..40..material.175 .89 . activities.. systems.methods. total...... ISO..177 Inventory.239 .in..data..273 .operational. process.and.improvement.239 .(JIT).139–140.language....94–95 ....work.platforms.125 Japanese. strategies. waste. reorganize..159.177–181..181 . information.flow. 277–279 . 76–98 .develop..4–7 .19 Job..lot..

global.cause.26 Lean.control.129 .Sigma.conferencing..189.50 .. international..195 data.charters.event...workflows..118 training. ..events. 139 key.chains.data.steps... .and.137 measurement. .54.. supplies.customer..and.and.charters..187 identifying.alignment.and.for. video.change..supply.185 change...(VOC).111–112.22.119–120.process.138 facilitation..and. implementing.32... strategic. new.improvements.and..277 .alignment.116 rapid.and.136 analysis. strategies.team.282 ....goals.workflow.26.254 net.114 .and.128 ..transition.124 .and...36.process. . 121.113–124.and..root....220 analysis.191 improvement..128 .team..in.and.research.and..26.129–130.process.organizational.projects.231 .objectives. ..audio... .characterization.129 .22 ..200. .277 .and..153.215 process..team..and.analysis. opportunities..responsibilities.and.across. facilities.deployment.promoter.questions.29.the..196–198 scheduling.225 .. .and.. . schedule.activities..277 ...and...and. 234 .55 ....best-in-class.233 six..259 roles..operations. and.improvement. .analysis.263 ..163 Kaizen.. strategic.analysis.114 .. .126.275 .224 communication...139. .127 roles.233 .and.breakdowns. .129 failure.solutions.identification.score.of.222 .of.activities.charters..collection. ..Kaizen.....and..and...workflows.and.134–135. project. 269 process..and.63 Kaizen.maps.. activities.change.118.effects.. .and.organizational.Index  ◾  327 data.with.184 decision-making. obtaining..117.Six.23. .activities.. improvement. .with. ... infrastructure.members. .components.229....tools. objectives. 141. planning.118 . . ...of.training.. .222 transferring. kickoff.local.risks.of.235. and. project.126.280 project. .117.. 269–270 ...methodologies.analysis... Kaizen.12. project.128.232 evaluation.and. .marketing.for.goals.277 .team.for.readiness. support..and.5 Kaizen. ..and. operational. .116 .of.115 ..180 empowerment.122 .(FMEA).and.286 control.255 support. 131–135. rapid.22..220. deployment.and...130 .system.213 .three.improvement.and. voice.analysis. prioritized.258 failure.train.objectives..analysis..221.leader..process. .agenda.chains.. alignment.114 .with.223.. project.of. worksheet...for.256 general...229 process.for. .118...improvement.causes.131. .of.and.experts.224 ...233 . ..of.personnel.212 implementation. .and.stream.. .personnel.measurement. facilitating.138 . resistance.risks. evaluating.stakeholder.workflows..improvement. .205.117. communication. alignment. obtaining.127 root.development.221 consultation.155 process.components.229.solutions.127.of..126 ..collection.teams.product.... ..and..examples.240 .274 .(NPS). ...231 Lean.124 . organize.organizational.and.equipment.prioritizing.and.across.financial. .global....123.115.177.267–268 ..15 ..234 implementing.116.mode. objectives.30 Lean....190. 207–209 project.160. goals.layouts.examples.. .of. . .202–203.and.of...112 recommendations. conditions.and.182. .of.115–116.25.... preparation. sponsors.119–123..42.and......259 .36.and.151. follow-up. . process.of.122 .with.8.212 Kaizen..causes..supply.and. process. . value.responsibilities..

.90 ..Kaizen.the..137..198 ...metrics.design.191. activities.of.78 Korea.workflows.202 .(SMED).258 .3:.processes..19.98.101 Kano...31 .19 Late.event.22–25. process. tools.viewpoints.of.63.level.of.of.177 .191 .focus.46 .Lean.223..workflow..129 ..across.philosophy.205 .77.. six.and.. basic.initiatives..222.10 .(DFSS)..274 Lean. marketing.Dr...variables. common..networks..44.23 .. operational. process.160.195.and.102 .Kaizen.5 Lean.metric.62 Key.46–49..deliveries.Sigma. behaviors.46 .supply....P..23 l Language.(HR).... sales..Implement.281 ..46 . metrics.of.. reducing.24.strategies..32.268.57 ..metrics.Sigma.for.5S.240 .. reduce.128....level. improvements.and.initiatives.55 .input.. voice..variables.268.and.70.67 .49 Key.opportunities..184 .. performance.reasons.global..61 Lean..for.and... rapid...(VOC).improvement.5.28 Kanban..and.of.... integrated.projects.the.. Kaizen.62 Kano....230.44.....61....(listed)....137 .42.62 .269 Lean. human.82.improvement.46 ..and.55 .184 Lead...and.of..masters.296 ..236 .impact.tools... communication.31. examples..deployment. data.and.. process.needs.complexity..229–232.John.team. diverse. analysis...methods. 18 .62 ..69.19 Kotter.. Step.24 .46 . Step.operations... inventory.Kotter..31 .analysis.workflow.. prioritizing...240 ..and..7...analysis...concepts.time...and. operational.processes.of.143 ..and. organizational.. satisfaction.John.chains.64 .222 .of..200 .231 . deployment.231 .needs.8. 270 .100.282 Lean. operational.and..275 ..analysis.32..of.36 .and. procurement..solutions. projects.collection.. methodologies..change.4 . implementing. process.Six.136 .cultural.customer.233.and.assessment..41 Lean.needs.Six.46 .136 .11 Lean.production..P.resources.224 .of. initiatives...25 Lean.conduct.135 Leading Change by.125 Korean..needs..90.Sigma....(KPIVs)...process.metrics.. excitement..30.improvement..and.setup. concepts.32 .280 Lean.objectives. changing.improvement..274.evaluating..280 .time.characteristics.57 .23 .of.differences.295 .26.events.event.237....4 ....2:.14 Lean..1:.Design..and..and.236 .46 .changes.90 Lean..process.approach. product.45.105 Lean Six Sigma.66 .180.output.125..plan.financial.242 Key.definitions.and..112 .189.220 .stakeholders. impact.common.242 Key. major. Step....the.. tools.language. process... performance.expert...68.methods..(KPOVs).Six.328  ◾  Index Kaizen. initiatives. financial. cards.and.122 .. supplier.event.and.. concepts.29 .96.methods..39–40 Lean.267...align.269.system..14 Lean. control.change.. deployment..71.discussing.metrics.45 Lean. process.of..268 Kobayashi.conducting. culture. Lean...process.24 .138 Lean.

of.Six.67–68.(VSMs).53.supplier..event.process.Six.and. supplier.pull.Lean. implement..46 ...and.process.37..methods.39 .Sigma.55 ..training.Basics..Just.Sigma.32.cycle.31 . Lean. Lean.planning.94 Lean.46 ..complexity.97 .39. ten.system. Kaizen. planning.30 ..38 .Time.process.Kanban..32 .70–73 .champion.a. performance. create.279 .TIme.controls....and..26..methods.improvement. systems. eliminate...41.14.and. continuous.69 .of.. business.change.system.29 .systems.of.(JIT).61.and.environment.of.event.technologies.38 .102 . reduce. root.212 . and).281 Lean.flow.key..assessment.76–98 ...111 .and.Sigma. 63.and..83 Local. in.21 Lean.and.training.12. 102–104 ..69 .Sigma. value.the.24.Stream.32 ..Six.61–63 Lean.alignment.100–101 .27 .197 ..high-level.metrics..279 Lean.office..Six.cost.and.of.85.process.(leadership.update.system.78..the..22 . analysis.Six....content.teams.16 . project.and..29 . implement.Six..methods.98 m Maintenance. executive.robust.and.of.update.reducing.29 Lean.222 . low.schedule....33 .process...-... manufacturing.28 .selection. service.in.product.105.the..50 . reducing.and.Index  ◾  329 .. simplification.technologies.demand. problem-solving...chain..system....teams.(JIT). benefits..metrics.(VOC)...map..elements. four.32 . 24 ..29 ..workshops..135 Major..... voice. mixed-model..Teams..workshops)..38 .elements. low.of.deployment.38 .operations.change.operational.. project...networks.24..Sigma.charters. technology.workflows.14....team.23 .Six. visual.to. communication.112.tools.to..142.Value.the.key.117 .277 . elements..and.of. projects.68 Lean..Just.information.complexity.metrics. strategies.Teams.measurements.38 ..data.32 .64–66 .business.143 Lean..3–4. global. tools.and.100 Lean. continuously..(middle.implementing.16..process.of.tools.measurements. strategic.of.98–99 .conducting.of.... high. deploy. implement.29 .and.and..visual.106–110 .scheduling.cause.46 .metrics.Six.elements.14 Maintenance.Sigma. building.case. management.networks.yields.and.... reduce.and..and..36 . project. deployment.work..operational.and.74–75 .22.36–38 Lean.chains.. financial.of.metrics.identification..96–98.277–278 .systems.of.teams.64 .37 Link. understand.in. teams..capacity..systems. flow.process..55. continually. team.teams.an.41 ..operations.46 .. develop..Sigma.26–27 Lean.39 .. alignment.initiative.steps.. eliminate.(VSM)..internal.tasks.event..97 ... compensating. evaluating. rapid.46 .and.designs.analysis. high.support..materials.pull.and.operations.methods.work.100 ..VOC.the.57–110. ten.82–83. problem-solving.and.and..58 .control.15 .35 Leanness..unnecessary. plan. Customer). Lean.and.16 .improvement...29 . low.220 .33 .. supply.30 ..(VA).Kaizen.systems.Maps.and.67–68 .31 ..customer..logs.in. create.product.21..26 .stream.improvement.41 ..variation.time.supply.sizes..161 .Kaizen..for.29. performance.274 Lot.value-adding...unnecessary.and.138 . project.Sigma. implementation.process.30..complexity.of.26–32 .and.(Voice.

products.research..29–30 .278 ...event.85 Mathematical.254 .89.. 198. inventory.penetration.flow.207.240 Malcolm.229 . Pareto..29.proofing.... strategy....142. development.7. financial.research. stability.255 ..Companion...(NPS).using...21 ...stakeholder.Six.280 .230.84–85 . process.. 253.testing.. process.error.254 Measurement..29 Minitab. common..alignment..data.263 Metrics ..173.57..263.plans.stream.87–88 .204 Marketing. accuracy..23.. Kaizen.job.operations.66.by.Inc.team...procedures.254.296 Minitab®.systems.11 ....254 ..and.Minitab. analyzing.37.Sigma.of.156–157 ..190 Miscommunication. Lean....characterization.66..level. 295–298 Misalignment.254 .Sigma.92.265 . Lean.of.system.74–75. Kaizen.customer..team.and.98.137 .87 . define..19 Market.28 .chart.66 .Quality..168 ..37 . process..330  ◾  Index Major.score. process.207 .issues.and..(Appendix.196 Nonrandom.statistical. buffer.. pull.. process.examples.and..Baldridge..and.38......analysts..295–297.........scheduling..53 Malcolm..46 . Kaizen. policies.product.dashboards..295 Minitab®.Quality..map..chain...increasing..285 .46 Market.and. reproducibility.. creating.214 New. reduce...promoter.66 . voice. operational.example..20.Statistical.variation. processes.Baldridge..behaviors.189 n Net.project.Sigma.. market.. Companion.a.the.and.297 Minitab®.268 .analysis.research.and.36 ...system.(VSM).204–205.32 .177 .160 .. standardization...264.91 .flow.charts.criteria.example.statistical..and...components.. operational.of..240 Management..135..... functional.295 .features..toolsets...analysis.. key.44.258 .232 .chart.schedule..231 Mixed-model. value.and. method.2.162.283 .softwear.cycle..205 .2).296 .249 .278 .changes.. design. simplification..187 .shadowing.tools...254. Lean.workflows.295.reporting.and.189–190 . creating..times.296 ..84.66 .296 Minitab®...process. repeatability.265..64.and.295 .softwear.scheduling.254 ..Software. Companion.(NVA)..improvements.120 .255 .296 . project.297 .191. balancing.66 Mistakes.and.. balance.improvement.247..reduction..material.57.award.patterns....127.Quality.205–207...analysis. process..strategies.higher.modeling.and.and. eliminating. error..205 Materials..reinforcing.7 ..products ..Six..99.61 Mitigation. linearity.36 Metrics. Kaizen.of.system.system.254 Metric...codes..(VOC).. control.and.45 .of.102 ..chart.254...of.methods.inventories..control.270 New. control... prioritizing. methods. 176–177 .and.and..teams.language.. 281 McDonald’s.data.and.206. Pareto. resolution.and.and.complexity.230 New. Lean..106 .201 Mistake.129 ..and.222 Mistake-proofing.195.253 Non-value-adding.255 .mapping.191..102 Measurement.153–154..and.and.Six.supply.185 Mandarin.

283 Organizational.customer...221 Organizational.. measurement.of.168...and..69 .53..(units.37 Operations .143.Martin.financial.. creating.proofing.event.. process..44 Operational..69 . Kaizen..145.(VSM).134 Operational..of.55 Operational.270 .274.268...288 Outsourcing..154 . value. 70 ..defects.or. Lean.19.69 . about.production.stream..286 Organizational.stream.of.operation.products..60 .information.31 Operations.new..63 . downtime..Corporaton..282 ..performance.269..55 Performance.throughput.change.58 o Obsolescence.63 .145 Operational..within. critical...... cultural..cultures.269 p Packaging.277 .43 . identifying.change . production.. Kaizen.and.exercise. time.work..233..environment...required. rapid.and.and.content..29 .map. critical-to-quality.(equipment.25..responsibilities. roles..267 .. simplifying.119 Operational..31. scrap.71.(CTD)..32 Office.40 ..168 P-charts.and...themes.assessments.184.195 Outliers.information.differences.. people).and.of..event.systems..metrics..supply.64 Overproduction.common....percentages.from. brown-paper.26 Operating.W..188 Outsourcing..safety.61 .supply..57.percentages.structures.. Lean.measurements. critical-to-cost.training..128 Operational..floor.18.61 Office.map.time.70 ..services.collecting..84 Oracle®.71 . voice. implementing. percentage. standardizing..61 .productivity.11..expenses..and.discussing..182.69 .169.38–39 ..and...objectives. minute)..the.projects.task. dysfunctional.to.69 .in . critical-to-delivery.269. reporting..themes.63 ...82 Pareto.environments.180.team.Excellence.. prioritizing.chain..analysis.168 ...31 .system..39..(VA)..chart.and..63 ..60 Office. effective..space.of.247 Performance..(VOC).per.253.the.63 .breakdowns.41 Operational..269 .stability.value-adding.268 .rate.cycle.to..24.149–150 .research. rework.69 . mistake.120 Operational.jobs..(OR)....gaps.70 .behaviors.and.39 .metrics .(VSM).. James.55 Organizational. sending.cost. global.40 Operational..data. reinforcing. transportation.chains...office.measurements..change..232 Organizational.workflows.(CTS)... 69 Performance. setup.for.55 . mathematical..environments.or.61 Np-charts.247 Organizational..reports...goals..113 .29 Performance. analysis. allocated.277 .(CTC).147 .percentages.themes..by..184..improvement.of.incorrect.barriers.investment. limited.224 Operational Excellence—Translating Customer Value through Global Supply Chains..times. inventory..of.themes.269 Operational...lines.or.mistakes.254 .(CTQ).232 .11.activities.. repetition.9 Organizations.methods.19.workflow. value.processes. Kaizen..272 Organizational..Index  ◾  331 ..

281 Process..cause..185.optimizing.148.149.235 Process..study. floor. methodologies.breakdowns..44.. scheduling...222 .effects.196.operations..38 Prioritized.7.common.28 Process.237 Process.153..control..mode.activities.improvement... reducing....control.layouts..inputs..tools..168...121.mapping. lack. excess..scheduling. and.worksheet.57 .274 Process. employee..10 Process.for.30..changes.sustainability..methods..151.60. implementing..155 Process..57 . impact. key..owner.effectiveness...137 .prioritizing.288.78 .119 Process.196–198 Process.global.and. organizational. common.287..configurations.of..185... organizational.57 ...variation... elimination.walkthrough.243 .examples.procedures).workflows.269–273 .136 Probability.methods..barriers.152.layouts..240.and.242 .222 .. work.of.and. variable.82 .30 Process..of.36 Poisson.analysis.240 Process.teams. continual.243 ......using.10 ..levels.236 .22.224 ..procedures.and. across.of.247.organization..complexity..283 .213 ..distribution.and....analysis.281 Process.. poor.290 Process . root..effect...teams.analysis.240 ..135 Process.analysis.process.253 Potential.332  ◾  Index Physical.196 Process..audits.. Lean.experts .characteristics.225..controls.outputs.212 ..eliminating.workflows...188–189.data.78–79....242.. failure. 195–218.104 Process.. simple.. part-time.160–162 Process..findings.60 .264 .improvement.242 .. organizational.training.demand.operations.proofing.worksheet.design..79 Pilot.updating... reorganizing...improvements.process.189.changes.256 .. changing. measuring.training..245 Process.141 .191.technologies..263 .of.of. training..271 .audit.. 5S.261 Pricing.simplifications..122 .222 ..conflicting.153 Process... opportunities. cost-benefit.waste .243 . collecting.failure..242 Process..53.workflow. audit.and.241 Process.202. lack.194.239.and.295 Present.event.systems..151–159 Process. common.185–193.tools.243 Process.226.. 194–196 .223 .223.information..strategies. full-time..of.(FMEA).tasks...process.approach..7 Process.analysis... statistical. analytic.57 .141..231 .and.. examples.lines.distribution.57 Process..227 ..process.82 Process...44 Process.. identifying.levels..procedures.. office.standardization.... poor..186. 199–211 ..cause.questions.279 ...243 .and....improvement.....119 . 233.......Lean.243 .on.and.243 ..200 Process...area..analysis...control.237 .developing..147.197 .Excellence..inspection.. organizational.reducing..122 Process..189 .work. training.264 Process.46 Priorities.234.to..163.processes.236.mapping—SIPOC.. implementing.241 .57 .242. Kaizen.improvement.163 Process.analysis. mistake.(SPC).to.change.change..and.support.of.137 .process.243 .240 .22 Process.standardization. root.analysis. control.32 .32..(floor.supply.inventory. implementation..and...to.102.tool.documentation.240.258 PowerPoint.required. overproduction. strategies.190.barriers.185–193 .characterization.224 Process. obtaining.

management.of. operations.18–21 Processes... financial.53 .and..design.workflows.52 Project.and. improving. pull..receivable.and.marketing...stream.and.. accounts.290 .materials. Lean.events....and.208–209 .classics.8.systems. communication. project.changes.9 .. new.60 Procurement.72..137 .every.proofing... example.(VSM).common.supply. information. preparation.. .and.and..119 .57 unnecessary.process.235 ..charts.softwear.processes.process.chain.50 .processing..flow.business.technologies. new. waste.281 Processing..36 ... objectives.analysis. office...47 Project.yields. breaking.289 ..service.142 ..research.stream..market.data.15.(VSM).227 . Lean.identification..43 . goals.receivable.models.and.154 .exercise..plan.Kaizen. quantifiable..50 .11.42 ..57.57 .supply. supplier..map.227. formal.203 .and. metrics.233 ..and.goals.high-level.. prioritizing.of.analysis...workflow.and.279.....14..36.55 .metrics.. analysis.team. layouts.57.assessment. control.the. brown-paper.142 ..24..200–201 .and.operations.20 .by.champions..and.59 .high-level. Kaizen..waste.18 Product.at...by.21 .52 .113 .115 Product. simulation.55.30 ..21 .40 .projects..58 .....and.complexity. .down.or.222 Project.and.61 seven.59 Profit-and-loss.work.proofing .. waiting.forms.. three-dimensional...60 Process.of. waiting..57 Process.of....153 ..261 Project.173 .. transfer..41.and.mistake.27 .69 ...development. auditing.296 . outsourced..characterization.50.219.and. project.40 .goals..statement.. control.51. process.proofing.. Lean..116 . simplifying.map. Lean. financial.alignment. value.events.identification.. hiring.....rationalization.information..43 .... process.Index  ◾  333 ..153 ..45.environments.. value...268 Project.and.and.119 . performance. unnecessary. selecting.performance..135 .90 ..mistake..employees.24 . quantification.. accounts.35–56.statistical.and.chain.150 Product.36 .for. new. Minitab®..control.129 ..of.analysis. implementing.190 Production. balance.example..workflows.41–42 .forecasting.191 ...time..194 Project.200 Processes .37. breaking.operation.of.115 Product..38 .Kaizen. example.287 .24 .available.42 .202–203 .identification.solutions...capacity.201 ..or.151.288 . Lean.process. common. changing.145 Project..tools..of..metrics.55 .product..and..224 .(SMED).forecasting...setup.84 . financial. financial.30 .transport.... product.199–211 .19.190 .measurements.205–207 .charters .. Lean.. project.examples. operational..204–205 .redesign..144 Process.. cost-benefit.benefits.down.product.60 .model.material...... manufacturing. reduce.149 .32 .50 . process.of.200.deployment.32 .117 .and. mistake.motion.of.systems. standardization.assessment.and.defects. analyzing. prioritizing.controls.or.50. collect.research. outsourcing.product..and.identification.people.characterization..77 Productivity .process..43 .teams..(P/L).222 . machines. Excel-based...220.57.objectives..188.and.and.analysis.197.119 .

and.298 Quality...example..7 Reichheld.. expense.technology.plan.service..15.35 Project.on. increased.(ROI).forms.232 Resources.and....269 Projects..22..12 Project. 31 ..227 .identification—process. increased.Frederick. Kaizen.. generic..51–54 project..251 Rapid.. .control.289 ..100–101 .definitions.(SMED)..behaviors. Kanban...15 .methodology.240 Quantification.daily.cards..48 Project.267–268 .metrics.. cost.(COGS)...reading.227 ..89.56 .Companion’s..55.100..66.90 Redundancies..and. single.worksheets.global.52.28 .40 Project...100 .sold....activities..supplier.and.and. codes.employer. .60.100 Pull.(IT).identification—process.inventory.(SMED).Lean.controls. .scheduling..teams.227 ..customer..and. eliminating.financial..80 Reduce. .demand.assessment.12 Return. 269–273 Relocation.259–260.50 project..customer.external.to.solutions..161 Push. suggested.297 Quality.51.40 Quick-response.296 Project..production...of .teams. .32 . important.of.28 Recommendations.identification...processing.and.improvement.new.297 Quality.282 .14.systems.of.improvement.102 Q Quality.264. resistance. increased.31–32..a.of.105...changes.. short-term..control..leaders. summary. Toyota.39 Pull.process. cost.37.212.of.projects.using. .across..36–38 overview. 45 Project.minute.260 Quality..systems.cashflow...Companion.supply.227 Proposed.analysis.organizational.. prioritizing.189 r Random. SMED..2..227 Projects.investment.230 Reinforcing. change.benefits.195 Regulatory.change. increased.Roadmap.questions.225 Project.benefits..Lean..events.work-in-process....227 ..90–91 .analysis.. Kanban..151 Range.and. overview.154 .116 Project.avoidance. minimize. implementing.satisfaction.proposed..of.or..102 ..160. 43–44 .nonfinancial..changes.267–268 .of .charter.eliminating.274 .100.visual...39–40 key.117 .satisfaction...project...scheduling.(WIP).exchange.and..4.metric.in.time.product.demand...assessment..to.risk.analysis...presentations. Kaizen.46–49 Lean.239.plan.chains.103 .259.team. process.manufacturing.43–44.charts...chain.55 .Companion.projects. stable...setup.methods.examples.....262 Pull.goods.230 Red-flag...prioritization.275 Rebates.225 .PowerPoint.274.increases..and.334  ◾  Index conducting.32 ..satisfaction.91 .dies..transition.234 ..communicating.to. others.20 Resistance...conditions..system. management.supply.50.sampling.227 .267–276 ... typical.219 Project.39.. assigning.F.45 Project. implement..system. and..52 Project..213 .35–56 prioritizing.reduction... information....systems.212 Projects .227 . revenue. templates.. .87 Red-tagging. allocation.....constraints.

.195 .minimizing..and..Sigma . process.marketing.breakdowns..separation...data..282 S Sales. collect.285..and..and.288 .214 .2... example...events.160 .analyze.258 Road.analysis.rating..... disorganized.process.solutions.157 ..systems.priority.change..and..strategies.planning.the.receivable.64.and.204 Sales...activities.202 Sales.. cost-benefit.team.systems.exchange.290 .percentages. change...222. Kaizen.new.279 . reinforcing.plot. metric..261 .31 Sarbanes–Oxley.. implementing.30 .182 .and.industries. cause-and-effect. data.and. process.and.professionals.225 ..effects.80 Sharing.stakeholder.focus....96 Setup.(SMED).workflows.77. Accounting..and.Financial... project.and.(SMED)..195 ...25.and.improvement..for.promotional.282 Scrap.142.184..dies. 272 .assessment.supply.across. key..behaviors.and. 90.285 .knowledge.prioritizing.. process.time. improvement..analysis .91 Six. activities..tools.164 .improvement.221 .and. 255 .Services.across.. process.212 .232 .162..53 Simulation....67 Service.analysis.environments. level....Quality.115 ..process.192 . change.281.80 Simplification..cause.223 .223 .297 Role.and.. infrastructure.40 .and. 180 .changes.8.286.135 .192 .of.and.269 Simplification. process..transition. 222.227 .model.92.and. level.11.. level.190.272 .143 .1.operations.a.analysis.. accounts...collection.analysis.. failure.events. control.case.113 .workflow..team.19.and. percentages..and.diagrams..chains.activities. changing.recognition.202 .(FMEA).292 Singapore.across.and. Kaizen. workflows.global... common.Companion..office.and..204 ..methods.process.237 .Board.readiness..and..188 .286.map.288 . concepts. communication. Kaizen.7 .(RPN).example.125 Single.. reduce. operational.management .170. 270 .273 Shining.business..estimating...of.dashboards.Index  ◾  335 Revenue.(S&OP).E).287.200 Risk.90 .287.196 Service.and..analysis.202 Scatter.. opportunities.141.3.116 ..39 .breakdowns. histograms.. building... standards.136 .135 Sharepoints..and.and.278 Roadmap.. accounts..263 ..projects. Kaizen...(FASB).change.231 Rework..200 Senior.233 ..119.. waiting.rework..26 .minute..change.115. creating.. example:.time.272 Service.2.150. process.analysis.analysis.and.274. conducting.mode...287 Simulation.a.team.inventory.. cost-benefit.194 .supply...global..and. organizational. data.167 .setup.world.improvement.286.change..286 .240 .196–198. follow-up.of......characterization. loops..23 .197 ..improvement...and..and. reward.recognition.(C.36 Reward..192 .reduction.and.. deployment. identifying.121 Service.. aligning.236.137 ... process.219.capacity.increases.receivable.171...Lean.and..277 .&.117 Root...134 Scrap.processes.chains.processes.opportunities.systems.

205 .deploy.. data. Six.reduction.and. deploying. communicating.224.267 . . define..96 Solutions.(FMEA).principles..case. examples.system. .268. deployment.5 . key.change.(VOC)...characteristics.....behaviors.Sigma..from. data..336  ◾  Index events.teams.of.Quality.in.measure...process...tools.226.222 .change.26–32 .Minitab®..296 reinforcing.analysis.control).and.142..of.variables. .. Kaizen.tools.191 Six.and.metric.. outsourcing.customer.and. improve. building.. 255–257 .requirements.30.System.requiring.project.214. 269 .22.improve...business.projects.to....change.63..proposed. key..tools.(KPIVs).. general.. inventory.137.. . reducing.25.. management.process.Sigma. creating.111.of.and. control.241 .35 . ..and.and.178 ...new.solutions.191 SMED. 177 .261–262 .10–16 . projects.Sigma....259–260 .67 Six. data.. improving.Sigma.new. Kaizen..244 .to..activities.data.137 outsourcing.Sigma.analysis.184 .case. .phases . .61 .92.151..execution.of.chains.and.61 Six.150.methods..280 .analyze..and.. 244–253.240 methodologies..control.Asia.variables.initiatives..softwear.system...10 .5 . voice...92 SMED.team.reading.problem-solving.189.processes.networks.of..8.270 .. organizational. reinforcing.(SPC).Sigma.implementing.. control. analyze.Sigma.collection.measurement..analysis. components.280 implementing.support.21 process. work. projects.behaviors.41.122 .168 .295 Minitab®.satisfaction.work.(huddles)...155 Standardization. measurement.effects.61 .system..89..meetings....(DMAIC). organizational.a..51 Strategy. (define..Sigma. building...steps.variables.process..control.159..Lean.methods.analysis..statistical.and.error..33 .improvement..142 Statistical. supplier.. quality.and.a. key...a. Kaizen.performance.122 process.“belt”.178 .281 ..lean.controls. measure.change.32.waste.change..and.improvements.3–34 .methods.process.supply.184 .264 .statistical...223 .224 .296 Stakeholders.297 Small.tools..244–253 Southeast.3–34.and.159 Stakeholder.60 Statistical.30 .gaps..process..152 Strategic..changes. 24 Six.240.identifying.253 .244 Statistical..263 .296 mistake..dashboards..229 Standard.222.and..162 .61.improvement..events.16.. Lean..five-phase.. .(KPOVs).19 Spaghetti.measure..244 ..methodologies. 177.295 . Companion.11 Six.242–243 ... how.17 . follow-up. important..analysis.. other.and. key.template.and.control.diagram... softwear.Sigma. define.the..output.example..128...22–25 ...processes....61 ..business. process..for.incorporating.for. failure.activity..methods.and.196.. statistical.281 .254 .elements... methodology .across..questions.initiatives..analysis.sampling.and.team.and.61 ..18–21 .plan.. tools.global.collection....alignment.42.three. suggested.analyze. methodology. control..and.input. overview.and. commitment.129 . 254 Six.......system.9. overview.deployment.breakdowns.into.plan.analysis...239 ..and.analysis.53 .improve. Kaizen.extensive.259 .222 .98 .strategies. process.258 .control. 160 Six. important.improvement.61 Six.261.proofing.240 .239–266 .and.group.complexity.mode..

..77 Toyota..77.233 Unit.57.and...31.of.information.scheduling.Grow”.63 .92.117 Testing. improvements...16. calculation—original.236 Travel.System.sampling.strategies.maintenance.184.and..92 v Value...32 . developing.work...run.37 System.117 Team.networks.67 “The...189 .motion.availability..and.(TPM)..and.72...38 .Need.series..workflow. utility..202 . “Lean”...100 Unnecessary.63 Value.develop.28 Trends.282 Top-down.182 ..... calculation.97 United.prioritized.17.38 United.expenses.210 Supplier-input-process-output-customer.37 Total...128 Teams. summary..105 ..cells...15. global.to..members...74 ......Harvard Business Review article)..systems.products...211.(TPM).studies..expectations.77 System ..93 System.breakdowns.movement... calculation—future. relative.stream.state...87 Transferring.maintenance..in. process.work.38 .163.157 Supplier.and.8.for..8.flow.82 Time.preventive. production.maintenance.114 .Production. constructing.37 . what. information.reducing.production..10.States.96.analysis.12 Total.61 .of..Index  ◾  337 .of.training..forming..Kaizen?.management..88.good.30 t Takt. dysfunctional.performance...136 ..74–75 ......101 .obtaining.63 .jobs. supply..batches.and.. 100 Toyota.standardized....Reichheld..pull. process.63 .operations.and..technology.services.37 Team.152 Summary.control.. 60.170–171.materials.85. predetermined.chain...171..and. price. benefits.and.163 Supplies..137 Transfer.117 ..equipment. 92–93 .(IT).274 Transition.conducting.You.complexity. just-in-time.preductive.253 Trial..and.28.environment.31 Supplier.is.of.cost.30. process.33 .workflows. functionality. process.or.reducing...several.4–7 Stratified. analyze.system.modified.63 .initiatives.One.. dysfunctional.118 Supply...productive.(COGS).95 .(JIT)..Parcel.87.. assigning..98–99..support.of.importance..93 Total.75 U-shaped.58.chains.103 .. time.total.workflows...(JIT)..concept.sold.76 Training.time. of.73 .77 .(VSM).164.92.127 .and.249 Unionized.210 . within.process. value-added.63 .systems.new.content.data.map....just-in-time..process.Number. procedures...Service..rate.93 . (TPM) Toyota... 210.(SPM).waste. “Preventive…Autonomous…Predictive”...61 Unnecessary.....149–150 .manufacturing..145 ...batches.graph.identifying.59... (SIPOC). see also.eliminating. (Frederick..69 u U-charts.278 . key.230 Time...76.(TPS).

67 ..systems. .129 .39..of..process.job.and..flow.environments. mistake..setup..and.proofing.the..analysis.product.time..281 . example. common.73 ..27 .150 .144 . Lean.121 .63 .280 .create.84 .. workshop..11 .. reduce.21 .time.and.37 Work.71 .events..in..27 .setup....of.70.complexity.and. just-in-time.about...(CTC).43 ..38 .(JIT).implementing.146 building.53 ..of..and.... 32 Voice.62.205 .. activities.for..steps.26–27..and..122 .collection. prioritizing.. process. ten.. pictures..of.operations.156 .11..279 . . critical...change.of.of.new. process..74 ..164.shadowing.rooms.(VSM). 120.(VOC).182 ..model.(SMED).. critical-to-cost.280 Voice. visual.115.operations. process.129. example..themes..exercise.60 Work .7 .create.customer.. example.team.120.unnecessary..projects.activities.planning. 141–148.Sigma.106 ..91 .and... voice.a.242 .Sigma..duration. just-in-time.behaviors.153.63 ..analysis.workflows. alignment.63.61 .characterization.of...development.to.data....and.and. value... standardization.269 Work.and.pull.mapping–SIPOC.themes.163 .. voice.receivable.31. process.cause..and.279 .(VOC)..information. .95 War..79.identification. example.3 .implementing.workflows. three.100 Visual...and...61–63 W Waiting. understanding.115 Waste. critical-to-delivery.. process.17 .system.253 .customer. calculating.basics.analyzing.eliminating.process.of.and.and.and.222 creating.of. balance.the.117..workflows.35 Work.of.themes.30.of. reduce.195 Work.of...63 .U-shaped..map.workflow...control.(CTD).change.the.145 Value-adding. Kaizen.patterns..to..106 . Lean.multicultural.. Lean.118.and.Six..alignment..and.stream.and.business.characterization.the.40 Wal-Mart.for.supplier.338  ◾  Index brown-paper. implementing..and.84 .material.system.space. standardization.and.with.21 ..the. strategy.127.safety.performance.156 Waste..of.150.29..83 Work.63 .and..38 .Six. process.. process..70–73 data. Lean.motion..207 ..44 ...72.software.workflows.131...time..61..89 .105 .. reducing. reinforcing.135. strategy..operation.. project.187 . eliminating.(VOC).and.90 .by.(SMED). quantification. process.37 .79 Visual.58 “Walk. outsourcing..144 .alignment.30...operations.63 . Kaizen..systems. Kaizen.7 building.. Kaizen...analysis.major. organizational...Six..systems.business.211 .basics...(VOB)... Variation.accounts.controls..of. 74 .154.and.129 .changes. common..(VA).153 . quantification.(JIT). critical-to-quality..themes.87 .(CTQ)..operations....37.workflows.26 .systems..analysis.10 ..202 .and.environments. reasons.processes.280.case.and. elements.unnecessary..(CTS).to.requirements.workflows.solutions.. Kaizen.10 ..251 Visio®.. outsourcing.and. . collecting.7.process..office.and.145 .cells. objectives.process”.146 .176 ..customer.. translating.new.76.Sigma..7. process.event.and.139 ... eliminating.212 .71.

277.120.43 Work-in-process.104 Workflows.. internal.119 ..104...173.60..(WIP).31.stations. reducing..247..(WM)....chart..166 . overloaded....285 .systems.84 Workflow.inventory.codes.Index  ◾  339 Work.66 .management.251 z Zip..278 ...76 X X-bar. Internet-based. 105..

Sign up to vote on this title
UsefulNot useful