Lean Six Sigma for the Office

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

Lean Six Sigma for the Office

James William Martin

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

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

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

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

i  ◾  Contents

2

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

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

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

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

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

to. implementation.several. responsibilities..will.a. roles.will.other. that. to.or.nonoptimum. projects..levels. this. resource.and.an.their. have.deployments.example. Top-down.in. aligned.who. xample.In.as.of.not.and. structure. may. deployments.and.usually.project.because.project.promoted.concept..financial.and.responsibilities. . Six.discuss. activities.formally.improvements.. hierarchal.tend.Roles.as.charters.managing.depend. objectives.efficiently.to. people. its. is.is.communications.complete. allocation. similar.usually. effective.well-defined.clear. an.needs.and.benefits. and..and. and.the.on.not. A. that.and.an. leader.makes.of.difficult. a. result. initiatives.organization.resources. projects.most.we. develops. coordinate.12  ◾  Lean Six Sigma for the Office goals. and.strategically.in...help..and.participants.directly.local..resources..informal.deployment.facilitate. project.no.based.basis.all. over.Informal.allocation. Clearly. depends. communications. Deployment. creation.responsibilities... their.on.resource.and.important.be.very.with. major.for. team.roles.accountability.As.a.have. A.workflows.usually.resources.that.responsibilities. where.Chapter.Table.execution.do..based.them.are. positioned.people..team.for.successfully. for.consistent.sustained.or.plans.impacted.resources.and.form.not..approvals..goals.and.required..Also. names.This.use. organization. to.aligned.the.the.their.assessments.In.identify.improve.an.prioritization.usually. and.structure. A.In.cannot.communication..and..aligned.and.available.3.identified.support. a.across.a.. high.to.benefits.organizational.and.is.This.supporting.well.an.technical.helps.1. Lean. also. determines.Six.. depend.be.on.responsibilities.resource.bottom-up.to.time.in.communications.A. Although..problem..8. responsibilities.to.project.. deployment. on.functional. it.roles.have. several.This. initiatives.assigned.isolated.2.that.advice. Sigma.situation.or. business.will. how.prioritization.because.they.the. As. Roles. informal.available. their. and.projects..deployments.is. found.business.Lean.difficult. of. The.a. benefits. leaders. move.allocation. roles.structure.simple.deployments. their.and.aligned.organizational.prioritization. understanding.that.is. prioritization. priority.may.project.responsibilities..and.sustain.. defined.Project.frequently.project.to.process.of.minor.making.to. on.with. that.roles.that.deployment. relative..with.projects.that.will..areas.important..deployment.must.a. highly.initiative.basic.Sigma. responsibilities. look. project.and.1.formal.all.allocates.are. resources.be.to.have.resources.deployments.as.an.ensure.are. are.. and. is.usually.form.integrate.a. a.result.every.priorities.projects. show.necessary. defined. an... The. initiative. in. dependent.organization’s. and.employee. an. commonly. lists.effective. also.its. commonly.with. selection.human.poor.process.will.can.project.Effective.benefits. resources.over. projects..will..Informal.leading..bottom-up.business.on.and.and. risks.have.increase. successful. differing.approach. Table.resourced.their.project. structure.that. for.difficult.because.hierarchal. on.their.time. execution.roles. based.organizational.they.identification.be.strategies.deployments.with. top-down.of.the.leaders.are.. have.are. engaging.deployment.. deployment’s.way.at.to. forward. in.contrast. people..responsibilities..projects.are.to. including.shown. by.be.isolated.organization.there.is.to.will.contrast..effectiveness. operational.professionals.their.initiative’s.charters.their. deployment.are. facilitates. and. communication.their..Aligning. e .an.teams. Kaizen.roles. have. within.

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

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

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..opportunities..Lean.implementing.rely. of.breakdowns.Sigma.other.Once.can.communicate.particular.three.organization. to.nine..not.so.data. an.briefly.also.The. increase.is. Project Identification 3.and.Kaizen.workflow. reference. to.this.format..visualization.of.Lean.trained. Data Collection and Analysis 6..instructions. and.planning.process.across.documentation...solutions.chapters.have.analysis. or.reinforcing.through.operational.major.should.shown.process.to..improvement...be. basics.unambiguously.and. goal.map. Implementing Solutions 9...and. rapid. self-contained.event..will..language.by.to.prevent.methods.set.case. Process Improvement Step 3—Implement Solutions and Change Behaviors 7.efficient...5. high-level.speak.performance.methods.into.discuss.the.its. accelerate.of. improvement.activities.an.Six.diverse.of.a.project.designed.be.parent.in.In.topics. Lean Six Sigma Basics Step 2—Plan and Conduct the Kaizen Event 4.A..people.is.steps.must.understood. particular.most.fully.. to.local..rather.work.These.select.audits.chapters.will. book.events.in. Also. Reinforcing New Behaviors 10.well. building. detailed.has. hapters. Strategy Alignment 2.detail.We.the.The.Finally.process.map. Building a Business Case for Change 8.sections.the.been.the. use. employees.include.new..but. c .countries..deployment.be.and.road. and.increasing. Organizational Change Step 1—Align Improvement Opportunities .on.professionals.Sigma. the. table 1. to.nine. very.subsequent. easy-to-understand.the.alignment.move. and.trained..office.examples. to.step..rigorous.local.that.comprising.to. new. Kaizen Event Planning 5.22  ◾  Lean Six Sigma for the Office and. this.book.5S.respect.words. in.steps.process.must.is.improvement.alignment.a.organizational.facilitators.next.and.who.methods.visualization.future..divided. your.changing. p .language. documented.work..nine.enable. Kaizen. a.the.follow.the.deployment.a.and.follow-up. discuss.Table. provide.The.be.collection.documented.identification. local.well.including. possible.. how to deploy lean in three Steps A.cultures.strategy.. extent. or..who.business.a.these.behaviors.for.of.process.chapters. level...then.the. events.way.been. process.for.execution.and.these.planning.into.use.1.Kaizen.the. greatest.Six. is.5 how to deploy Kaizen eents in three Steps 1. and.procedures.behaviors.road.transfer. rocess...and.Ideally.into.agents.of.to.changes.

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

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

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

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

3. be.3 ten important elements of a lean system.time. comparisons.then.7 translating the voice of the Customer (voC) 1.to.into. These. Market segmentation. made. maps. from. Eliminate Unnecessary Operations 5. . rocess.. Develop Supplier Networks 7. (VSMs). table 1.related. directly.(CTQ). process. Implement Visual Controls and Pull Systems 4. Implement Performance Measurements 8.. Identification of performance gaps.quantified.shows.how. Create Value Stream Maps Figure 1. value. 7.critical-to-quality.1. 6.Ys..or.translated. Customer demographics and distribution channel.internal. Deploy Lean Six Sigma Teams 9. Comparison to process performance.customer. collected.and.Kaizen. with. performance. 2. Implement JIT 6.workflow. or.themes. data. stream. 4.7.similar.cost. current. 5. Continuously Update Process Technologies 2. Market research. Translation of CTQs into specifications (Ys). 8.Strategy Alignment  ◾  27 1.major.being.value. and. Understand VOC 10.by. using.or..the. characteristics.. Customer themes or critical-to-quality (CTQs) characteristics. operational.analyzed..Table.. will.team.quality. Development of projects to close performance gaps. the. p .are..needs.into.expectations..specifications.characteristics. reports.successively. Reduce Product and Process Complexity 3.

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

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

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

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

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

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

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

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

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

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

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

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

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

are.close.been.to.their.used.and. improvements... is.There.000 $ 56.to.and.in.resource. 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).common.strategic.These. of. over.through.projects.minimum.643 $ 5.with.already.obtained.deployment. e average A/R balance is $15 million between 31 and 60 days.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 $ 61.2.analysis. also. projects.have.4.expenditure.goals. important.objectives.be.643 $ 61..Figure. prioritizing projects Prioritization.3 project charter example.an.identifying.shown.organization’s.that..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. most.are.above. .projects.are. that.of.can.performance. ensure.include.6 K ($15 MM) *(15 Days/365 Days)*10% = $61.gaps.gaps.an.performance.prioritize.643 $ 56.643 Comments Team Information Team Leader: Team Members: Name Role Expertise % Time Figure 2. to.to. e result is lost interest expense from money that should be collected no later than 30 days from invoicing.the.several. $10 million between 61 and 90 days and $5 Million over 90 days.Some. productivity.strategies.strategic.identified.prior.000 $ 5. To reduce the accounts receivable cycle time by 50% in the 31– 60 (15 days) to save $61.that.of.

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

is.Continuing.focus..financial. of.and. mapping.Benchmarking.of.to.Chapters.5% 4.performance.or.operational.be..other.project.or.be. not.of.Figure.This.contained.target. provides. project..good.verify.another. compare.when. identification.the.. activities.Finally.discussed.Lean.to.good.. (VSM).Comparisons..health..improvement.variation.projects.. in. used. and. organization’s..tools.initiatives.against.an. simplification.complicated.VSM. mapping..be.their.4.. projects.require.may.of. must.against.is.review.teams.safety.may. is. issues.is.VSM.a.walk-throughs. . stream. is.process. Benchmarking.information. is. also.analysis. using.a.useful. projects.serve. performance. advantage.execution. be. value.can. process. of.how.methods.financial.major..3.5.standards.hand.or.organization.On. 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.method.Project Identification  ◾  53 Profit and Loss (P/L) (Millions) Revenues Net Sales Other Income (Net) Total Revenues Expenses Cost of Sales Selling.this.Another..Figure.evaluated..between. The.time.ideas.as.projects.book. that.metrics.verified. it.source.to.a.team’s..an.a.2.a. An.example.and. systems.organizations.useful.and.will. method. process.to.useful. using.4.. In.. commonly.including.major.projects.center.. found.related.methods. identify.will.The. to.operations.poor. projects.for.and.to.adherence.those. regard.an.. operational.trends.is.discussion. using.in.used.requiring.of.similar.true. over.any. from. current. constructing. financially. in. a.operational.a.. analysis. an. In.process.5 generic financial statements—profit-and-loss statement. greatly.it.and.similar.the. that. useful.in. identified.identify.will.exhibit.estimates.of. projects..our.of.in.reports.this.statements.As.of.and. operational.improvement.types.listing.either.toolsets. would.benefit.of.tools.it.improvement..a. is. However. particularly.always.show.to.identifying.in.are. VSM.initial.4% Figure 2.that.source.performance. an. standardization.to.especially.performance.different. project. benefit.2.of.5% 3.of.they.includes.workflows.always.regulatory. information.is. that. also.

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

. James...2nd. Hans.2008..and.Wiley.Publishing.and.... New..Project management: A systems approach to planning..ed.Donald... New.for.in.Technology. James.Merino..Series.. Martin. .York:.Management.Martin.Engineering..Rad.Crawford.ed. 2007.1993...York:.. McGraw-Hill..1995.Wiley.York:..P.. Parviz. and controlling.New.. York:.2005.Kent.New..8..New.Wiley. scheduling.Wiley..Ginger.J.Series..Kerzner.56  ◾  Lean Six Sigma for the Office Suggested reading J. Harold.Lang.The selection process for capital projects.Engineering.York:.Auerbach.Technology.in.Operational excellence—Using Lean Six Sigma to translate customer value through global supply chains.Business....York:.F.IIL..2007.Wiley... Lean Six Sigma for supply chain management.Center.Vol. Practices.Auerbach.New.and..9th.New.Project portfolio management tools and techniques..2006. W.York:.Martino.Management. Series.Project management maturity model.and..W.N. Joseph.Levin..Research and development project selection.

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

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

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

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

terms... aligned. people.on.to. of..one.ensure.from.cause.to.product. of.phases.analysis.process.in..or.customer.. incoming.Unnecessary. The.Chapters. necessary. basis.customer’s.search.in.to.be.defects. .lead. away. time.after. and.once.any.as.without.After.to.satisfy.seven.sending..standardized.. product.information.(NVA).reduce.similar. answer.caused.one...the..Process.several.both.or. environment.i.to.the.office.time.and.its.incorrect.it.answer.system’s. work.also.There.most. and. or. provide.(VA).will.work.of.analyze. proofed.process.system.that.had.rework.tools. an.office.seventh.will.using.reship.methods. process.call.possible.e. online.to.more.set up a meeting twice.are.customer.work.occurrence. an.motion.methods. Six. within.customers. major.the. programs.methods. In.standardized.uses...situations.and.the.environments.operations.the. the.common. answer.defects. a.measure.eliminate.or.simple.either.was.have.rework.in.to.scripts.environments.a. some.and.from.that.than.for.statistical.and. and.data.types.uses.to..tasks. several.Six.time.process. Lean. to..initiatives..evaluate.employee. in.improve.of. the.focused. flow..also.information.it. The. goals.available. Lean.if.for.we.Mistakes. recall.In.workflow.of.are. average.to.by. call.Lean.the.remain. in.its.is.more.screens. required. process.Lean Six Sigma Basics  ◾  61 may.are.not everyone responded to the e-mail.process.defects.waste.of. the. on. improvement.the.obtain.it. objectives.have.Sigma.occurs.then.the.in.required.movement. call.. products.cost..terminology.of.these. Sigma.more.may.is.to.five.Some.of.of. requires.and.a. include. or..over.times.must.well..like. process.accessed.chapters. Lean..Sigma.a.define.of.and.control.Value-adding.process.Six. which.mistakes.service..eliminate..root.mistake. information.and.20.minimize.discussed.more.the.easily. required.times.phrases. as.questions..center. which. waste. two.discuss.fatigue..(VOC).up.a. the. in.. to.. looking.later.. for.context. several.analysis.identify. customer. example.perspective.must.or.but.was.more.position.that.thrown.redone.exist.a.activities.extend.same.information.the.phases.be.. activities. methods. are.computer..also. be.situations.improvement.environments.materials.span.or.An.or. understand the voice of the Customer (voC) Process. information.They.job.bring.targeted.time.office.types. initiatives.tools.be. organizational. with.and.remains. customer’s. office.office.this.as.5.6.and. equipment.help.The.of.have.the.a..non-value-adding.will.waste.or.form.include. task.components.(NVA).in. fact.of.services.stable..These.to. questions.scrapped. understanding.. situations..others.within.to. information.found.rely..defective.necessitates.and..them.These.done.having.or. I. In. improvement.be.also.reworked. occur.the.did. mathematical.made.work.combinations.process..reanalyze.work.. fact.not..includes.a.standard..of. are.called.be. and.of. well.mistakes.than. analysis.improvement.types. should.which.data.capacity.work.a.a.agents..employees.components..and.customer’s.operations.call again.unnecessary. myriad.common..in.Defects.other.voice.do. VOC.Defective. to.. Examples.throughout. center. these.. a..production.to.to. as. used.a.twice.resend.when.and..non-value-adding.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Figure 3.17

7.i. leel demand.

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

96  ◾  Lean Six Sigma for the Office

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

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

Lean Six Sigma Basics  ◾  97

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

Unit i

Unit Flow for Several Jobs Job 1

Job 2 Job 3

Lead-Time Reduction

Job j

Figure 3.18

7.j. reduce lot sizes.

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

98  ◾  Lean Six Sigma for the Office

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

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

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

Lean Six Sigma Basics  ◾  99

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

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

Production Sequence

Mixed-Model Sequence

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

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

Figure 3.19

7.j.1. mixed-model scheduling.

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

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

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paced.the.to.events.and.Lean.”.event.These.result.concepts.112  ◾  Lean Six Sigma for the Office Major Phase 1. Follow-up Figure 4. 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.shown.execution.sections.Kaizen.planning.be.this.of.major. be.Sigma.in.for.Lean.“follow-up.1.adversely.subsequent.sequential.the.people.These.fast.a.basis. shown.days.impacted.reason.Kaizen.Chapters.presented. goal.sets.containing.may.“preparing.activities..be.list.very.will.on. carefully.poorly.require.the.structured. chapters..emphasis..important.It.discussion.to.of. Prepare for the Event Activity Code a b c d e f g Days 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 Required Activity Comment Select project charter Assign project leader and team members Reserve a conference room Obtain supplies and equipment Ensure facilities are available.the.event.coordinated. .and.with.form.that.“conducting.within.include.sections.plan.events.very.build.on.for.Kaizen.3.Chapter. the.if.it.are.events.Figure. including breakout rooms Ensure support personnel are available to assist the team Collect process information of floor layouts. 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.activities.completed...to.two. sections.days.members.of.”.their.schedules.continuing.”.discussion..in.four.these.Also.is.in. several.planning.to.4.4.with.several..”.first..team.will.1.“presenting.supporting.our.a.event.be.event.each. will.findings.Kaizen.activities.will.. work flows.rapid.of.For.is.divided.deployment.an.be.1 Kaizen eent checklist..teams.the.the.major.of.As.and.follow.into. 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.of.The.will..for.Six. Our.involvement. Conduct the Event a b c d e f g h i 3.are.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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.

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

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

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

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

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0 25. Unplanned Orders p.percent.0 15. a.1 62.000 3. an.0 16.Figure.4 58..audit.0 60.process.000 10. as.2 1.“frequent.of.0 13. initial.source.0 16. Production Rate (Units/Time) or Operation Cycle Time 3.000 10.to. Annualized Savings h.0 62.An.5.a. Figure.7.5..collection.Lean.0 10.”.identify.This.at.depend.for.metrics.5. is.0 18. data.0 20.000 18..possible.0 18.methods. Profit/ Loss k.4 31.time.000 5.example.an.This.classic. condition.0 26.that.is.same.1 1.could.negatively. baseline.0 15.number. it.classifications.0 18.or. other.in.such.the.0 19. schedule.0 22.0 54.0 63.0 63.team. both. that.level.as.scrap.0 69.0 24.0 66.function. Scrap% 4.a.in.chapter.0 24. several.. shown.list.on..time.advantage.800 3.of.8 1.any.accounts.additional. methods.0 13.provide.including.15.advanced. Number of Customer Complaints d.0 30.performance..0 70.9 72.0 24.7.0 19.shown.0 20.the.1 24.5.of.8.7 1.0 1. example.0 16. On-Time Supplier Delivery m.is.0 1. either.Kaizen.7 85.and.to.job.3.0 17.154  ◾  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.demonstrate.conditions..0 74.in.those.percentage.0 25.0 12.0 8.that..6 27.0 27.17.be. Forecast Accuracy n.several.analytical.data...was.0 12.0 72. Material Availability t.simplification.be. Number Employee Suggestions e. a.in.5. quality.done.9 56.0 29.0 20.a.000 10.0 16.be. projects. operational.how. time.800 3.time.0 29.0 18.process.of.environments..other.in.the. There. Lead Time o. information.5 81.to.a.0 50.0 19.Figure.additional.9 14.0 55. . Capacity (Units/Time) 7.0 16.in. and.0 15.. perspective. or.5.of.several.also.red-flag.8 100.issues.0 2. proofing.other.can.of.0 20.the.7.in.a.reduced.standardization.VA.000 10.0 17. useful.template.but. Number of Problem-Solving Teams c.0 20.0 18.team.increases.2 1.example.0 14. Excess & Inventory 15.5 1. using.0 27.contained.5.in.approach.Kaizen.prioritize. First Pass Yield (Rolled Throughput Yield-RTY) j.the.changes.0 13.process.1 75.metric. from.This.office.Figure.000 5.0 14. in.similar.may.0 28.8.improved. Percentage Scheduled Jobs Missed i.payable.000 16. Inventory (Units in Queue) 9. increased.0 65.As.a. Setup Time (Minutes) 8.the.5 87.lists.0 19. Downtime% 6.0 55.of.and.that.to..0 25. Total Process Workflow Cycle Time b.will. 85.7 4.application.0 15.1 1.0 16. of.more.000 5. because.0 68. immediately.process. information. because. is.137.5 24.The.0 30. follow-up.0 17.tools.0 15.categories.can.0 5..which.0 17.called.7.a.0 11.initial.will. using.Later.this.1 1. that. be.000 10..shows..use.the.mistake.0 19.projects.good.0 73.0 64.50 420 Date: July Auditor: Joe Takt Time: 8.within..7.0 19.percent.whose.be.1 78.75 50 $1.1 6575 Average 15% 26% -27% -17% -14% 42% -17% -30% -34% Figure 5.0 18. (NVA).the. event.percentages.audit.commonly.0 28.1 76.value-adding.efforts.analysis.3 60.0 1. Kaizen.order.of.environments.0 21.using.. As.value-adding.0 100. Schedule Changes q.shown.specific. the. to.to.0 17.0 23.4 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 1.7 99.shows.analysis.rework.Figure.a.increases.implies.0 13.one.0 24.template.and. been.0 25..0 22. Data Accuracy s.issues.Figure. The. Overdue Backlogs r.0 28.two.3 92.in.lists.000 5. to.0 52. have. shown.to.0 55.office.of.0 1. Inventory Efficiency (Turns) l.4).0 21.3 1.0 16.a. non-value-adding.0 21. Returned Goods Expense/ Incidents g. important. performance measurements (similar to Figure 3.2 1. Value Adding % 2.000 5.(VA).0 63.measurement.from.0 16. Floor Area Additional Metrics (Depending on Industry or Function) a.0 9. Warranty Expense/ Incidents f.total.9 30.800 3.. are.we.several.3 63..be.job.process.800 Week 9 Week 1 Week 2 Week 3 Week 4 17.can.0 21. collection.combination.detailed.changes.Figure. a.industry. impact.their.red-flag.of.8.2 26.5.0 23. through.0 14.15.4 30.0 33.0 21.improvements.percent.0 2.0 2.0 10.0 14.As.0 2. an.9 17.a.through. Rework% 5.a.0 20.Figure.

operational. its.as.template.in. to.50 $0..00 $75.analysis”.of.50 $0.00 $0. machine.to.. modified.of.of.the.issues.to. shown.. Employees did not have information to perform job.will.reduce. important.projects.the.Figure.these.Kaizen..or.00 $52. As.its. increase.lead.changes.root.00 $13.also.(VA). Lack of clarity regarding start of invoice.percentage..at..Kaizen. Jobs for these suppliers are run once per year.50 $0.00 $19.the. in.a.the.of. down.This.a. Figure. Figure 5.used..process.00 $75. example.time. spent. be.137.of.5.00 $0.lead.reduce.be. metrics.office. analyze.a.miscommunication.a. broken. These.time. Had to call supplier several times.8.schedule.shown.waste. root.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.to.a..context.“standard.down.be.cost.00 $30. Jobs were released at the end of the shift. reasons. and.myriad. red-flag.activities.root. Jobs had to be walked to another department.factors. the..drill.workflow. Jobs required several sequential operations.either. Jobs required three signatures.can.the.occur.be.occur.75 $10.of.will.within.time.50 Takt Time: 8.00 $22.50 $535. the.eliminate. is..in. Work tasks that can be eliminated form the process. Jobs have been pending for weeks.increase.template.into.as. number.investigate.team.50 $79.excellent. conditions.situations.greater..occurrence.for.improvement.wasted.template.8..due.workflow.of.to.level.its.processes.their. into..error.probability.customer.causes.serve.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.and.of.shown. payable.commonly.50 $0.process.5. Work procedures can be made more efficient. shown.should.sources.as.this.materials.50 47% Jobs could not be completed due to incomplete information.Figure. and.value-adding.expediting. In.00 $10..accounts.lack. of.to.50 $0.continues.Figure.9. lower-level. time.issues.team.the.also.00 $15.and.operations.requests.the.manufacturing.within.or.00 $52.causes.75 Date: July 50 Auditor: Joe $1. . New employee not familiar with tasks.. 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.will.50 $21. In.00 $7.and.the. other.causes. at. Employees confused as to work task. well.5.process.5 10.may.for..then.process.9.the.The. elimination. Job was rushed due to poor planning.analyze.25 $15.The.operations. useful. or.and.the. every.will.a.due.In.may.in. The.5.a. other.increase.50 $9.can. breakdowns.changes.within.8 process audit worksheet.due. also.teams..time. operation.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. issues.a.

Figure.percent.to.wasted.Kaizen.part. non-value-adding.place.the. major.357.lower. should.minutes.estimated.the.waiting.how.minutes.summarize..relative.be.9.categories.75 50 $1.be. long.team. the.time.gather.total.analysis”.percent.are.discussion.time.5.9.operations.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..example.that.Figure.a.the. .priority.in. within.9% 11.performance.and.5.5. process. cycle.of.in.percent.the.5% 12.8.focus.may.time.a. from. of.reflective.already.event.2.just.one.. Kaizen. of.to.be.useful.As..percentages.which.85. time.data.9 Waste analysis by operation.was.also.template.45.analysis..accounts. the.a.the.operations.on.3.of.4% Figure 5.Recall.our.non-value-adding.approximately.This.a.process.good.the.job..several.shows.ensure..performance.can.represents..if.total.accounts.1.10.3% 45.50 420 Time Due to Defects Date: July Auditor: Joe Takt Time: 8..this.longer-term...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.In... to.payable.which. time.is.waiting.“summary.total.baseline.3% 10.focus.137.jobs.of.process. one.first.very.to. be.of. time. for.in.Perhaps.9.components.these.across.represents.2% 16 44 37 4.are..for. the.information.of.estimate.process.in. more. 357.focus.event.workflow.of.the.of.at.as.to.within.time.a.waste. identify.would.These.the..a.broken.the.time.a.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.either.equated. the.issue. shown..an.the. 25. reasons.down.also.level.Figure.Figure.It.5. or.or..non-value-adding.To.similar.

that..a. not.Most.improve. It.of.Quantitative. method.it. adapted.nonvalue-adding.process.occur.show.a. related.effective.records.computer.11.an.. include.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.noted.by.in.result.an.. Job.the.such.0% 0 0 0 0 0 0 0 0 Figure 5.at.used.shadowing”.5% 44 12.work.working..Then.greater.manufacturing.because.those.is.a.work.of. in. her.possible.tasks....4% 16 4.9.or.during.tasks.of.work...that..time.an.diverse.complicated.standardized.template.other.for.data.with.extensive. major. to.their.a.the.not.beginning.an.to. it.3% 164 45.or.it.when.days.processes. except.within.collection.and. process.4% 0 357 100.5.10 Summary of waste analysis for seeral jobs.“job. similar.cause. is. their.be..a.. data.is..collection.using.tasks.shadowing.an.operational.heavy.time. spends.just.analysis.assessment. In.often. an..information.20.job..tasks.days.this.by.both.required. his.several.several..actions.example.major.context.sequences.are. that.only.time.or. also.job.available.more.method.used. is.of.of.attending.in.15-minute.who.with.is. complex.work. the.job.places.work.methodology.directly.standardized.by.Kaizen.with. job.to.situations..the.analysis. to.In.to.data.(NVA).proximity.where.are.the.than.useful.is.75 50 $1.improvement.require.associated.2% 5 1.on..industries.jobs.this.comment. information.work.are. performing.of.of. .As. the.process.to.shown.to.shadowing.useful.time.increments. number.characterized.office..be.is.employee.useful.tasks.are.time.work.of.3% 37 10. 5.capture.activity.managers.time. reports.facilitates. more.procedural.electronically.workers.not.observer.is.over.because.linked..work.percentages. spent.and.a.simple..not.these.involving. complex. templates.Figure.on.structured.changes...The.may.within.the..hours.flow.As.work. 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.event.time.make..root. more.an.Typically.an. and.templates. or.. work.and.the.at.do. is.activities.example.should.employee.meetings.very.a.9% 40 11.meetings..In.and.the.method. and.an.found. shadowing.will. or.137.It. tasks.is..operational.have.at.it.event..flow.analyst.components.calculated..office.that.extends.are..may.which.analyses.5. associated.Using.of.over.and.Typical.employee. shown.working.systems. another.percentages.words.other.professionals.team.in.as.may.discussed.by. collection.components. useful.inordinate.. information.that. spent.be...professionals.repetitively.is.analyze.use. job..amount.repeatable.have.large..and. in.and.job.and.useful.is. to.Kaizen.shadowing.50 420 Date: July Auditor: Joe Takt Time: 8.information.As. easily. Figures..an.examples.8.This. description.analyze.However.final.may.track. directly.in.process. tasks.a.but.levels.this.the.from.NVA. be.service.commonly.which.shadowing.

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

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.

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

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000 $2.Reason (Issue) 134 36 14 9 9 8 210 $10.100 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 5.000.900 $38.400 $66.000.25 high inentory inestment—first leel.000. .900 $42.100 $171.000 64% 17% 7% 4% 4% 4% $638.000 5 100% $1.000.000 $1.700 $42.

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624 $33. .337 A1 A2 A3 A4 Count Percentange Estimated Impact** Project Inaccurate schedule Late delivery Missed Schedule Unknown Total $638.164 134 100% $638.341 $47.164 Inventory Investment Due to Canceled Orders ** Subject to verification Data Collection and Analysis  ◾  181 Figure 5.Root Cause (Canceled Orders) 9 108 10 7 7% 81% 7% 5% $42.862 $514.27 high inentory inestment—second leel.

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29 high inentory inestment—third leel.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 5.000.911 $347.341 A21 A22 A23 A24 16 13 73 6 108 $10.199 $61.Root Cause (Late Delivery) Impact** $76.000 $514.574 $514. .

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

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

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

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

.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. interviews. Review concepts with customers. Ineffective or inefficient survey choice of methods (emails. and similar data collection methods). Gather the VOC. 2. Failure to review new concepts with customers to obtain their feedback in a methodical manner. focus groups. site visits. Work with product design to translate VOC into design specifications and prototypes. 4.5 example 3: new product marketing research. 3. Failure to develop alternative designs that meet customer and business requirements and their characteristics be evaluated using structured methods. Develop alternative designs. All VOC information is not transmitted to product design or additional requirements are added that customers do not value or need. Estimate customer needs and requirements. 5. Typical Issues Lack of quantification or methodical survey methods used to obtain the voice of the customer (VOC). Figure 6.

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

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

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

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

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

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

weighting. ..a.survey.a.can. or $2.having. and.designs. if historical information is known.common.the.methods.total.It.of.customer. 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.the.in.meeting.ranked.shown. anner.was.alternative. This has increased the leadtime of new product releases from 100 to 200 days and increases development costs by 50%. Summary Table..000.000 annually.specifications. this can be taken from the projects charter.incorrect.in. m .than.process.6..higher.weighted.presented.requirements.weighted.in.prioritization.having. identify. Problem Statement: All VOC information is not transmitted to product design or additional requirements are added that customers do not value or need. Root Causes: TBD Required Actions: TBD Current Performance: Insert metrics.be.be.described.lower. and other metrics.eliminate.to.those.changes.total. more.of. to.suitable. financial.Figure.superfluous.the.calculated.for.enables.process.a.9 Kaizen project—new product marketing research.more. charts.that.listing.customer.10.Chapter.5..are.important.6.a.deployment.The.and..one.to.Projects.or.several.made.adding.to.performance.poor..causes.1.root.a. Figure 6.of.business. Future Performance: TBD Anticipated Benefits: TBD or.

6.as.statistical. create.addition..related.and.process. issues.1.used. teams.was.may.poor.and.apply..verbal.may. case.Figure.project’s.breakdowns. asset.for.. in.to.procedures.a.6.4.audits..process.process.their.4.showed. cause. such.questions.3.and. types.support.of.or.of..should. management’s. time.six. mentioned.process.section..chapter.we.office. types.included. improvements.in.of.less.process. issues.that.(SPC).processes. shown.an. use.a.In. Figures.and.also. should. modification.asking.typical.well.budgets. through.as. are.the.vary.be.controls.tools.related.want. to.maintenance.These.a..some.to. investment.consider.processes.be. root.6.where.common.testing. inventory.and.in.6. in..Figure.entitled.instructions. gain.effectiveness.programs.the. occur..control.other.“General. cycle. inventory.in.example.and.It.1.meetings. that.and. demonstrated.prior.goals.various.were.sustainable.. as. should.process.6.. The.functions.inspection.Table.Questions”. the. Figure.related. ..8. process. within.such. example. processes...then.project..important.6.cost.to.combination. These. training.model. These. and.yields. analysis.methods.6. process. of. to. used.balance.sustainability.work.that. operational.establishment.shown.finance. valuation.control.result. issues. how..mentioned...Figure.process.five.improvements. Table.between.achieve.in. internal.of.process.miscommunication.Typical.. and.with.effective.22).particularly.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.improving.they.those.lower.and. a.10 prioritizing new product marketing research projects (similar to Figure 5..concepts. these. and.As.to.As.improvement.and.4.the.. that.as.organizational..discussed..6. for. increase..it. analyses.These.their.recommendations.to. situations.controls.operations. to.is.was.specification. Kaizen. using.consists.additional..several. a.forecasting.include.the.. relative. be.group.2.control.financial. the.listed.of.This.and.office. business.demonstrated.

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

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

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

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

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

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

level. team.These.the. .risk.stakeholder.its. oncept.and.in-depth. A.shown.to. situation.more.negative.discussed..chapters.of.on.that.plans.the. the.a.is. those.analysis.to.risk..team’s.have.and. all.to.of.useful.7. unknown. the.countermeasure.systems.may.results. considered.in.in.been. Certain. of.methods. improvements.In.training.an.people.Kaizen.and.key.information.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. and.5.recognition.collect.process.introspective.this.a.objectives. c . effectively..obtain. recommended.tools... team.shown.the.the.alignment.to.side.characteristics..barriers.mitigation.resistance. been.right-hand.Countermeasures.people.7.plan.of. have.is. solution.additional.4. data.goals.efficient.is.of.promote.is.development.barrier.of.as..these. ensuring.are. its.of..each. do.in..will.and. prior.this.analysis. evaluate. team’s.organizational. impact analysis of key stakeholders. objectives. Kaizen. empowerment. An.process.3.team.tend.impacts.are.key.the.in.impact.organization..of.difficult.using.concerns. process.the.having.the..of. changes.7.change.change.ensure.help. include.be.are.Several.high.have.more.analyze..an.Kaizen..aligned..summarized..a.focus. this..execution. fear.analysis.to.Figure.This.4.on.of.The. to.changes.a.conflicting.necessary..because.characteristics.goals.and.stakeholder.On..is.previous.countermeasures.Figures.proposed. a.countermeasures.7.7..analysis.organization’s.and.project. communicated.These. context.very.busy.promoters.whose. important.key.is. in.reward.been. Also.address.and.and.5. than. not. by.a. can.concepts. front.solutions. Figure.to.organizational.estimated.with. a.Figure. by. up.In.diverse.project. these. the.the.effective.and. minimize.stakeholder. developed.of.of.viewpoints.a.based.These.first. to.4 3.it.positive.tools.include.potential. originally.priorities. Kaizen.require. be..by.stakeholders. deployment.type..to.barriers.project.Kaizen.establishing.to.mitigation.

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

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

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

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

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

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

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

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

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

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

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

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

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

0 Figure 8. and 5.8 Communicating the proposed changes to management.262  ◾  Lean Six Sigma for the Office Pareto Chart of Causes for High Inventory Investment e el d or de r e ul ch an Root Cause Analysis: Level 1.4 13 12.6 100.27 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. and 3 Figure 5.4 6 5.8 82.6 16 14.6 80.2 100.6 67.0 94. Percent . 5.6 10 7.5 88. 2.0 • 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 67.25.7 94.26.8 7 5.1 9 6.

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

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

8 5.05 $4.00 $12.5 12.8 1.8 1.6 13.5 $ 91.4 1.0 2.5 1.1 1.40 $10.77 $4.6 2.4 1.6 16.8 1.0 18.00 $10.2 2.0 0.1997.03 % T otal Figure 8.take. .should.3 11.3 0.0 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 12.9 5.9 1.94 $23.72 $27.5 1.6 26.15 $0.0 3.8 1.6 6.McGraw-Hill.local.5 12.55 $7.0 4.66 $2.4 99% 97% 95% 99% 97% 99% 98% 95% 93% 98% 99% 96% 97% 99% 94% 99% 97% 98% 92% 94% $27. Suggested reading Davis.48 $1. and.maintain.2 1.6 100 % 15.6 2.8 1.74 $5.1 4.performance.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 1.9 0.7 0.70 $8.8 3.2 0.and.Implementing Solutions  ◾  265 16.9 4.2 2.6 6.10 Creating metric dashboards (similar to Figure 5.9 27.0 3.00 $8.8 2.3 0.8 1.process..30 $1.status.2 5% 0.1 4.4 2.5 1.50 $4.metrics.mentioned.8 0.9 2.1 18.8 4.6 21.5 1.2 75.of.00 $4.70 $4.2 1.6 7.60 $1.2 7.8 33.95 $19.8 1.0 0.8 10.0 3.4 0.00 Total Cost by Process Step Total Cost ($) Top (3) Improvement Goals: Total Cost Comments: 1 3 5 7 9 11 13 15 17 19 Process Step Number Product Group (Invoice Type) Total Operating Processing Time Inspection Time Transport Time Operating Cost Value Adding? Storage Time Yield (RTY) Setup Time Delay Time Total Time Process Step 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Total Sales Price Total Cost Gross Margin % Comments A 1 1 1 1 1 1 1 1 1 1 1 1 0 1 1 0 1 1 0 1 17 $32.00 $20.their.it.5 0.3 6.2 4.8 4.6 0.7 7.5 36.7 374.8 1.8 1.owner.2 4.0 8.7 2.5 1.3 6.1).4 5.3 1.8 0.4 2.that.6 7.8 1.8 1.3 17.00 15% C 1 0 1 0 1 1 1 0 1 1 1 0 0 1 0 1 1 1 1 1 14 $30.3 6.0 6.7 5.4 4.9 2.2 20..metric.1 37.2 0.8 1.8 1.work.3 3.8 1.2 9.2 0.2 20% 3.4 5.25 $3.4 3.New.9 1.8 10% 1.1 0.8 0.00 $0.a.4 $4.higher-level.4 2.4 2.0 3.monitor.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 1.6 13.0 30.4 4.8 1.7 10. discussion.dashboards.60 1.0 4.0 14.4 131.0 7.0 2.appropriate.9 0.35 $1.9 1.9 0.8 36 20% 3.6 0.9 19.R.0 7.6 2.4 13.8 5.0 1..8 2.6 0.7 0.the.to.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: $14.6 3.0 1.80 30% D 1 1 0 0 1 1 1 1 0 1 0 1 1 1 1 1 1 1 1 15 $24.2 4.6 3.8 1.actions.8 1.5 1.8 1.4 2.to.0 2.6 0.was.8 1.team.3 18.4 0.5 3.4 0.5 1.Bothe.0 10.1 0.6 2.0 3.08 $0.corrective.8 1.7 1.enable.40 $13.4 3.Measuring process capability.8 1.00 $6.25 $5.6 7.8 1.2 75.50 $5.00 $2..York:.9 1.7 0..27 20% B 0 1 1 1 1 1 0 1 1 1 0 1 1 0 1 1 0 1 1 1 15 $23.6 35% 5.7 0.1 14.1 3.6 1.0 3.

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

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

268  ◾  Lean Six Sigma for the Office

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

Reinforcing New Behaviors and Organizational Change  ◾  269

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

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

270  ◾  Lean Six Sigma for the Office

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

9. Infrastructure

8. Rewards and Recognition Generation 3

4. Projects

Generation 2

7. Project Transition

5. Improvement Teams

6. Operational Metrics

Figure 9.1

reinforcing new behaiors.

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

Reinforcing New Behaviors and Organizational Change  ◾  271

Initiative A
Communication Empowerment

Initiative i-1 Initiative i

Communication

Empowerment

Initiative i-1 Initiative i

Figure 9.2

Competency migration.

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

Tool Training

Alignment

Initiative B . . .

Rewards & Recognition Systems

Initiative A

Alignment

Initiative B . . .

Rewards & Recognition Systems

Tool Training

272  ◾  Lean Six Sigma for the Office

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

Reinforcing New Behaviors and Organizational Change  ◾  273

Mail Room

Sales

Packaging

Receiving

Quality Assurance

Trea Treasurer

Shipping

Manufacturing

Purchasing

Figure 9.3

Sharing knowledge across the world.

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

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International Division

Publications Publication

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274  ◾  Lean Six Sigma for the Office

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

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

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

are. activities.New.Operational excellence—Using Lean Six Sigma to translate customer value through global supply chains.My. an. ..York:.New. operations.improvement.. their.Reinforcing New Behaviors and Organizational Change  ◾  275 in. its.through.experience.has. times. long-term. when.key. differences.and.participants.difficult..found.are. in... have.practical. preceding.York:.and...Press..projects.1992.1983. several.that. John. initiatives.well. its.Kanter..have.been.various..improvement.chapters.Leading change.particularly. Harvard..Kotter..and.productivity. Six. was.Business.that. organization..small.isolated.much.both. been.between. integrated.can.several. a.experience..However.York:. improve. of. as. E.tremendous.2007.promote. mentioned.process.Press. also.as..chains.cultural.Kaizen.because.large.without. School.. events. James.there.. organizational.Moss. It.success. John.School. to. for. Volkmann..Simon.In.that. change.the.Heskett.factors. The transformation imperative. Free. strategy.I. across...Boston:. and.are.distances.Harvard. increases.P.P. Suggested reading Rosabeth.The change masters—Innovation and entrepreneurship in the American corporation..L.Schuster.Martin. or.rapid. Lean.impact.. Business.New. 1996.W.James. research.is.this.most.Corporate culture and performance.Press. Boston:..given.one.and.is. These. factors. organizational.supply.Auerbach.activities.1996.its. global. Thomas.be.. part.and. Sigma.as. with. change.resistance.there. Kaizen.implemented.contrast.Kotter.. that.. other.the. discussed..

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

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

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

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

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

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

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

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failure to discover missing or surplus items and related issues. Exponential . arrive damaged or late. Failure to protect order from the environment. Distribution Normal Mean . Order accuracy check prior to shipment. Order Is Shipped to Customer Accounting 6. Incorrect names. Order processing. Lognormal 48 Hours 3 Hours Order is lost or potions of the order are lost. 6. Invoice creation. Invoice sent to wrong customer or delivery not verified by supplier. Customer Receives Order 8.Appendix 1: Crystal Ball® Software  ◾  289 Accounting-Receivables Distribution 2. addresses item and amounts are entered into the system or incorrectly converted by the system.1 Hours Typical Issues Incorrect quantity or product is ordered. Invoice sent to customer. Customer Places an Order for Several Products 5. Normal 8 Hours 4 Hours 3. Accounting System Creates Invoice 7. Order Checked for Accuracy Freight Carrier 4.5 Hours 4. Order Is Received in Distribution Center and Processed 3. . 5. . Invoice Sent to Customer Order Is Closed Customer 1. surplus or damaged items prior to shipment. 2. Uniform Minimum = .25 Hours Maximum = . Order receipt.4). Dev. Invoice is not created due to missing information or is created using inaccurate information. Uniform Minimum = 8 Hours Maximum = 16 Hours Customer fails to properly receive an order resulting in receipt of damaged items. Invoice Is Paid by Customer Operations 1.1 Accounts receiable simulation: distribution assumptions (similar to Figure 6. Order sent to customer. Failure to discover missing. Customer places order. Invoice paid by customer. Normal 24 Hours 12 Hours 2 Hours 8.5 Hours Std. Normal 4 Hours Figure A1.5 Hours 7.

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00 15. 24.00 20.00 0.00 9.00 40.00 51.00 Normal distribution with parameters: Mean Std.20 0.00 10.crystalball.00 30.60 0.00 10.00 4.00 57.10 0.00 Mean Std.00 Rate 2.00 Mean Std.00 16.00 Uniform distribution with parameters: Minimum Maximum Normal (E12) 8.00 Exponential distribution with parameters: Lognormal distribution with parameters: Uniform Probability 8.00 14. Dev.50 10.00 4. Probability 0.00 48.00 3.00 3.30 0.2 Some Crystal Ball® software statistical distributions.00 15. Normal (E11) Normal distribution with parameters: Mean Std.70 0.00 18. Dev.00 60.00 50.00 48.00 2.00 0.00 0.00 16.40 0.00 12.00 13.00 4. Dev. Dev.00 Exponential (E8) Probability 39.00 6. Lognormal (F10) 8.00 12. www.00 Probability Crystal Ball® software is a global business unit of Oracle® Corporation.00 6.00 10.00 54.50 0.00 .00 9.00 45.Appendix 1: Crystal Ball® Software  ◾  291 Normal Exponential Probability Probability 0.00 Normal distribution with parameters: Mean Std.00 6.00 2.00 11.00 12.00 Normal distribution with parameters: Figure A1. Probability –10.00 42.50 0.00 4.80 –3.00 8.00 8. Dev. 0.com –2.

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0 60. Ship Order 5.com Figure A1. Place Order Distribution Normal Normal Lognormal Uniform Normal Exponential Normal Percentage 80.8 4.4 Crystal Ball® software sensitiity analysis.0 40. Process Order 4. www. Pay Invoice 3.0 80. .Appendix 1: Crystal Ball® Software  ◾  293 Percentage Time 7. Check Order 1.0 Crystal Ball® software is a global business unit of Oracle® Corporation. Place Order 0. Send Invoice 2.crystalball.0 20.0 Operation 7. Receive Order 8. Process Order 4.2 0. Ship Order 5.0 100. Receive Order 8.0 2.8 7. Send Invoice 2.1 4.1 1. Pay Invoice 3. Check Order 1.

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organizational.59..52 Best..147 .274.134 .202–203.278 Business.105 Automotive.. waiting.8–9 Apathy.batches. mapping..153..(BPM)...53 .. process.. five.46...269 Business.obtaining.191. criteria..process.level.120...King..tasks.of. simulation:....management....142 Bottleneck.296 Automation.and.28 Best-in-class..29..index A Accountability.(BI).105....15..utilization.distribution.capacity..breakdowns.Buy.278 .check-in.62..43 Accounts..280.135..processes...102 Business.Action..service.work..material..67 Alignment. methods...87 Balance.changing...management....85–86..39 Asset.105 B Back-office.plot.team.84–86 .needs.and. Kaizen.(BPMS).122 Bill.288 Benchmarking...workflows...activity...149 .example.240 ..goals.123.146.(BOM).4 Assessment.checklist.282 Brand.123 Balance.sheet..46.52 Basic..(BAM).model... Kaizen.activities.14.103...and.233.202.operations. process.235 Actual.232 Burger...belt..204 . simulation.203.21 Accounts..147 .120.and. photocopiers..intelligence.104. 227. targets.278 Business..analysis..170.52.149–150.objectives.(AIAG)..awareness.126.85–86 .277 .time....239 Available.monitoring.38 321 .48 Business. analyzing.202 .57 .and.Industry...skill..289 . 105.handling.184.46 Brown-paper.58 Average.239 .23 .payable.benefits..23. 120.exercise....capacity.and..modeling.Group.and...135 .flow.. process.improvement.workflows....100 Audits.and.event.63 Behaviors.278 Business...182 ..suite.115 Accounting.of.240 . bottleneck.receivable.organizational.workflows.212 Box.147.process... standards.57..management.conditions.208 Black.189 Accounting.material...278 Business.148 Bureaucracies.(BMA).156 ..22 Bell-shaped.management...122 .169. transfer.(AHT).288 Activity..assumptions.... strategic..188....improving...16..characteristics..94 Airport.process.metrics.key.curve.systems. process.and..

.variables.teams.of. opportunities..softwear.247 .Lean.236 .and.223–224 Change.48 Cash. for.(IT).binominally..233 ..operations.distributed. processes..246 .workflows. creating..160...208 Consensus-based. interpretation. process..range.164 .164 .91 ..setup.(IT).reasons. 6.(SMED).222 .flow.268 Case.231 ..237 Communication.219–222 .process..concepts... conflicting.stream. individual-moving.. Crystal. organizational.245 C Call.system.48–49 Competency.initiative.process. corporate..case.process..factors.and.product.readiness. organizational.106 .&.121 .. Minitab®.and.team..metrics.increased..222 ...245 .and.281 . for.migration.transition..210–211 Communication. (pass/fail)..engineering..and.67 .244–245 ..... calculations.analysis.improvement. international.management.(VSM)...165 .in.7 .of. data.274 .Sigma. unnecessary.245 ..map.161 China.of.45 Cashflow.75 .41 Cash.alignment..for.Kaizen.198 Capital. work.236..support.282 ..collection.technology.and...(CE). scheduling...cultures..team....sampling.(BVA). control. bureaucracy. Kaizen.and.improving...33 Control..Six. format..278 Channel.... seven...69 . reduce. strategy.74.for.64 Concurrent. information. cost-benefit.38 Complexity.normally.. information.and.20.and. key.and.Lean..212 .248 .change.249 ....analysis.projects.systems.charts. key.and.overview.232 Change.prioritizing.studies..219 Change.. process. overview.(C.219–238. reducing.distributed...223.diagrams..events.workforce. Kaizen.. 65–66 . project.model.247.233 Consultants..and.orders.management.and....technology.28 .236.charts.operations .and..and.22.stakeholder.180.reducing.to.232 . key. performance. readiness.278 Continuous.analysis.184.supplier.96 ...and.252 ..and.252 Change ..255.322  ◾  Index Business.rewards.250 .concepts..improvement.services..procedures.235..77 .and.recognition.244.61 Canceled..time.statistical...centers.priorities.charts.expenditure..231 . Lean..planning....71 Change...business..249 .175 C-charts.38 ..and.222. Lean.variables...building.282 .and.Sigma.296 .172–174.analysis. Kaizen..and.a.in...in. infrastructure.125 .. value.. process.E)..152 Common.172. control.67.value-adding.. avoiding......226.20 ..flow.272 Communication.resistance. (continuous).229–232 .improvement.. change. c-charts.effective..and..173 .barriers....products..162 Compensating. activities.184 ..Six. Kaizen.activities.67 ..271 Competitors..and.236 Comparison.268. identifying.for.projects.295..11.to.64–66.37.of..... 215. prioritizing..234 .organizational..282 .margin.for.Ball®.gross. p-charts.226 .. communication.223–224 . lack.225 ..26 .key.and..stakeholders.23.system.30 . reducing.219.eliminating.tools.46 Checklists.36 Cause-and-effect.software..32 . cultural.174 ...workflow.114 Cluster..235 .227–228 .activities.28..or..

level. 263–264 .285–294 . errors. key.sold..and.proofing.and..259 Core.5S. reducing.mode.245 Control.methods. process.37 Control. information.tools.of.194–196 .22..222 . requirements.up.. r-charts. effectiveness.291 .. control...instructions.40 . high.chart.of.layouts. business..249 .batches.other... long.new..199 .274.Index  ◾  323 .cause—late.portions.38 Customer..259 .245 .events. for.. process...distributed..64 Cost.times. cycle.plot.of.shadowing.systems. cycle.designs.177–181 .and.analysis..solutions...and. at.tools. five-why.reporting...tools..information. value..and.stream.. mistake..questions.231.(VSM).289.effects..deliveries.times.258 ....279 .. training..improvement..and. new.tools.software.diagrams.. sensitivity.190 Customer-facing..288 ..164 .250–251. control.241.166 Cost-benefit.impact..241 Control. building...38 Customers.77 .distributions.migration. 200.plan.&.data..E). control..149–150 .and.(huddles).limits.verbal.240 ..55 Crystal...(CTQ).types.. specialized.flow.and.and. root..analysis.analysis..testing.....of.inspection.and.of.....250 . implementing.31 .46 Customer.285..293 ..and.audits. value.sustainability.259 .290 .255 .....261 .modified. 258 .of..impact.226. X-bar.financial. supplier.288 .258 .87 d Data.258. equipment.258 ...stakeholder. new.and.down..work.characteristics.collection.process.satisfaction.290 .calculating.242–243. job.systems.137 .. elimination..graph. 288 Customer. histogram.and.. new. modification.211...map.and..245 .exercise.(FMEA).188 .. structures.analysis.value..metrics.or.141–184.263..programs.214.11. variation. 289 Countermeasures.36.165–166 .287. inventory.251 .setting... brown-paper..226. changing.and.patterns.root.for.253 .of.64 Core.223.of..of..(CTQ). written..232 .(C.methods.solutions.233 .87 . Lean.62 . satisfaction..229 Cost.259 .stream.245 .147 Critical-to-quality.41.259 .73..286.296 ..analysis.282.operational...the.282 .259 ........of.286.46.285.variables.team.analysis.procedures.286 .and. statistical. 259 .228.(COGS)..82.of.reduction.avoidance..and.or.. types..of.27 Critical-to-quality.4th. key..136.time.services. 255 .and......operations..147 .259 .process...288.levels.and.242 .290–292 ..281 ....cause.263 .of...148.. cause-and-effect.38 Cycle. complaints..... interviewing.charts. and.92.197.(VSM). Lean.organizational.and.120.meetings..227–228.. group.71.43.analysis.analysis.258 .map.a. analysis. requirements.(IT)..and..process.48.259 ...reporting.technology.172–174 .and. purchase..goods...169 .analysis..167 ..194. transfer. implementing.and.236–237.222 .278 .250 Control.analysis..175–176 .of.products.design.improving.239.Ball®.245 .... box.259 . maintenance.. modification.. Kaizen. steps. implementation.demand... Kaizen.visual.Poisson.292 .. failure.. sensitivity.219.245..

failure.154 ...and.90 .errors. process.responsibilities.rate..methods..36 F Facilitators.and...diagram.93 .development..language.280 Deployment.210 .. Kaizen.288 . classifying...modes.planner.46 Design.278 Entitlement..Six...264 .options.90 .of.reduction.31 ..chart..255–257..123 Equipment .priority.67 .Sigma..Manufacturing.36 Exception..rates.11 Event.....(RPN). value.or. template...characterization.198..295 ...13 Design.115 Finance....analysis..leaders...of..turnover.195 Error..200 Finance. targets.106.89 Error.121.258 .in.....services..and.organizational. prioritizing..11.19.. process.132–133 .methods.data.service. 240..196 Employee.15.257 .67.55. tools..(DFM). variation. operations..12.119 Financial.Sigma..14 Deployment..facilitator.change.demand....points. methodology.258 Failure.269 Distributions.154 ..104 Employee.(DFSS)..94 .12 ..collection..12...mapping—SIPOC. 135 Drumbeat.288 .. methods.and.reducing.98.324  ◾  Index ..prevention.191 Failure.95 .104.of .258 Failure.255.product..improve....continuous...map..10–16.. common.graph. level.and..and.effects.operations.training.(VSM).117.16.229.5. risk.. methods.269 Downtime.analysis..191 Expense.mode.and.221..105.31 Excel.and.170–171 .mode. normal.for..minimizing..project.events..139 .178.87.89. 67 Design.roles.integration.types... scatter. templates.time..288 Diversity..and.series..analysis.of.130 Fact-based..131–135 . process.151–159 .low..(DFSS)..tools.facilitation.. level..280 Deployment.rating...champion....25.290 ..analyze.reports...151...strategies.and..analysis..measure.12.for.31 Deployment. uniform.. bottom-up.people). methods. exponential.percentages.department. time..158 . patterns.130 Event.(DMAIC).66 Design.application..effects..222 ..209 Empowerment....163 .pricing.in.of.116.(EAI).295 Dell.. spreadsheets.value..(EVA)..296 .(FMEA)..(equipment.execution.loading. aligned.66 Design.296 Defects. standardized.standardization....9 E-mail.66 Design.160–162 .137.222 .19 Enterprise.and..stream.of.reports. hierarchical..89. (FMEA).methods.high.12 .66 Demand .for..222 English. top-down...conditions..37 e Economic..151 . purchasing...234 Deployment. example.288 .....61 Define.66. variation.. spaghetti... control.causes.14.94–95..impact... in.simplification.40 Deployment.143 Data.256 Failure.Six..and.added.40.52.15 Everyday..process. Pareto..plot.170 .200 Finance.168 .

166.projects.case.Review. skew..to. 145. Kaizen.shining.150 ...of.metrics.detection.. cultural.analysis.214 Financial.167 .191 .. identifying..32 Improvement.. (for..new..analyzing.209.recognition..factors.22 .113.253 Information.190 g Gantt.implementing. sorting.risks. reward.89 Hindi.272 i Immediate..level.and.systems.81..breakdowns.opportunities.process....165–166.225...charts).115 .. regulatory.14 h Harvard..57..19 Hiring.of..285 .. steps...financial..activities....teams.208.sheet.risks..53 Financial. 247.expert..using.209 .show.. statements.in.(I-MR.improvement.43.54 Generic.221 India.elimination.methodologies.125 . supplier..workflow. identifying. reinforcing..275 Global..202 Five-S.and...82 Five-why...belt..in....209 .....setting.233 .232.208–209..improvement.264 ...and.3–110...235.behaviors.23 ..and.objectives.workflows.positive.business.267–276 Improvement..statements.team.236 .25 .improvement. sustaining).261..for.. processes.278 ... process.19 Goals. technological. scheduling.184. worksheet..167–168... process..and.and.90 .55..114 Individual-moving..280 Financial.. self-discipline....language.. process...charts. identifying.53 Global...174 Improvement.follow-up.165 Follow-up.234 ...standardizing.8.high-level.296 Generic.chains. 258. Kaizen...... through.and...behaviors.impact.233 Implementing.23 . changing.of....and. process..prioritizing. change.(sorting.202..46.48.negative.29.167–168.breakdowns.80–81..233 ..test.282 . economic....89.team..map.breaking...system. project.operational. process...209 .and.and. organizational.change.195.statements—profit-and-loss.172.168 Human.234 .statements—balance.systems.resources.287 Graphics.risks..143.201...82 ..and.. order.48 Financial.silos”.projects.224 .recommendations.examples.(5S).80 ...and...risks.process.137.activities. implementation.solutions..down.36 Financial.233 .32 Information.212 .supply.39 High..solutions)..Business. customer.a.reports.risks.flow.46 Financial..risks.278 ..quality.122.and.233 ...activities.. building.127.and..Kaizen.service.charts.173..38–39..metrics.200–201. 184.improvement.235...Index  ◾  325 Financial.forecasting.53 Improvement.road.31.261–262 “Functional.events...event.167.workflows.reporting. 41–42 Goodness-of-fit.operational..change.outsourcing.range.defect.22.233 .193 Green.32.282 Incentives.233 .209 Histogram. standardization.66 Implementation.assessments..process...teams.methods..in.263 Improvement..219–238 .(HR).219–276 .230 High..24 Financial.32 Global..282 ..financial... alignment.

237.9004.7 Kaizen...203 Invoicing. root.9000..systems.59 .82–83 ...80–81 .setup.......76 . strategies. defining.. building. implementing...prioritized..turns.and.case.78–79 .222.235 ..32 ..269 Inventory.198 . 277–279 .projects...60 Inventory.105 . problem.tasks.27 Internal..121 .124.level..137 ..maintenance.15.112.on. efficiency.and.preventive..types.19 Job... philosophy.seven.methods.operational.improvement.240 Internet. reduce..times..177 Inventory.239 .135.methods. continuous.234.systems...125 Japanese.operations. level.198 .mistake-proofing.183 Inventory.188 Internal.97.177–181. process.and. systems.191 .for.94.159.. standardization.of. operational.flow.prescreening.. as.189 .standardized. improvements. control..135.analyzing.... high.change..227 . prioritizing...60.239 ..268 Initiatives.and..specifications.176 Just.24.investment..requirements.and. work.improving. asset...40.. supplier.92 International..networks.major..of.utilization.waste.165. first. checklist.cause.time.times..14.. communication.136 . stable..26 ...30.. third.process.level.and. communication..116 ..flow..for.92–93 Just-in-time.collection.quality.and.demand.operations....analysis..204 ..cycle.of.177 .reduction.level.181 . link.operational.(ISO).137 . worksheet.and. ISO.management.. major.182 .157 .4–7 ... reduction. apply.in..137 .material.90–91 . conducting..(JIT). activities.time.125...278–281 . change.business.....and.material. balance.178 .payment. information...19–20...analysis.84 .physical..131.180 .of..language.. 275...cycle. 76–98 .changes.tools. analysis.31 .111–218..77 .lot.data.105 Infrastructure..272 Internal.demand..in.data.methods. balanced.239 . analysis.develop.182 Inventory.designs.and.workflows.letter.326  ◾  Index Information. reduce..service.method.142 .139–140.. reorganize.the..technology.ration.orders.configurations..175–176.233.and.and.event...analysis.128 ..shadowing.a.sizes. canceled.175 .. ISO.(Ys).to.process.Standards. 5S.investment..103.data.. obsolete.eliminate. ISO.134.and..external.candidates.vs.53 . 120.80.124..96–98 .of.4.and.Institute.59...179 ..5S....195 ..implementing....87–88 .89 .125 .(IT).92 Job.(SMED). service.38 .and...time..collection.platforms.stability.proofing...136 . data.239 .and.273 . deployment.(JIT).22. process.. excess..105. mistake. second. waste. apply.37 ..Internet.94–95 .9001.60 .. waste.data.158 Job.. analyze.improvement.76 K Kaizen..77.247.high ...24.improvement.4–5..of.251 J Japan..196 .reasons. total.84–86 .shadowing.66 Interorganizational.and.of..77 ..37 Invoice..work...work....

supplies..177..235.questions.......187 identifying.Index  ◾  327 data.process...causes..and.examples.mode..alignment.data.138 facilitation.114 .205.operations..126. alignment.training... conditions.15 .277 ..of.and. follow-up.. .of...improvement. .259 roles.and.the. obtaining.222 transferring. opportunities.process..of.charters..114 .promoter..274 . schedule.and..115 .118 ..teams..maps.240 .277 . Kaizen.115.stream.195 data.118.solutions..26.activities.breakdowns.Six.. project.measurement. .personnel. and. ..277 ..workflows.leader. value..and.286 control.139.163 Kaizen.components..supply. ...119–123.223. 207–209 project. . .. .score.. .119–120.222 . 269–270 .138 .258 failure.229. 131–135. .122 .stakeholder.workflows.risks.and..and. activities. facilitating.collection.. strategic.equipment. implementing.improvement.for.team. project.conferencing.136 analysis.analysis...deployment. strategic.activities.115–116.129 . . .Kaizen.agenda....team.process.research.234 implementing.221.114 ...30 Lean..129 .137 measurement..across.goals..readiness.184 decision-making.63 Kaizen.267–268 . . objectives.127 root...of.225 .collection. . voice.212 Kaizen.and..151. new..and.22. deployment.29. worksheet.analysis. .42.202–203.117.analysis.transition. international.events.122 ...analysis.and.and. 141.and.of.in.analysis.191 improvement. .effects.and...goals.. . infrastructure. operational... 121.methodologies.. video..220 analysis.8.alignment.200.118..root.128 .275 . .and.. . alignment.134–135.improvements.components..global. ..organizational.212 implementation.231 Lean.256 general.233 six..improvement.steps..12.153. process.113–124. kickoff.workflow. .22 .116... rapid. objectives.and..and.116 rapid. ..229. improvement.characterization.155 process. organize..26 Lean..(FMEA)..Sigma.responsibilities. process.with. .and.and.change..and..and. project.and. .126 .233 .system. .. preparation..local.213 . .organizational.and.projects.. communication..259 .customer..126...and.232 evaluation.improvement.train.prioritizing.118 training.26.(VOC).and. . . .identification.254 net.with.responsibilities.277 .and.and..control.solutions..product.of.best-in-class.160.263 . .23.124 .across.and. .... .chains.182.. . ..130 .tools.risks.supply.. goals.....255 support..activities..and. .for.charters.objectives.. ...analysis..116 ....event. planning...and.36. .. support. and.organizational... ..180 empowerment. project..215 process...and. 139 key.with.117..185 change..cause.examples.32.of..members..objectives..131.and..personnel.global.charters..112 recommendations...128 .280 project.causes. evaluating. 269 process.and.25.5 Kaizen.chains..129 failure.220...team...(NPS).189.50 ..129–130.36..change.282 .and.with.123.of.workflows..three..224 .of. 234 . facilities.221 consultation.and.231 . sponsors.for.process.127 roles.for.124 .and.audio...and.and. .. .team..layouts.224 communication.of. .127.marketing. resistance.190.of.experts. strategies. prioritized..196–198 scheduling.117.of.. .55 .financial..for.111–112.229 process.233 ..and.128.and. obtaining..and.22.54.development.of.

.of.177 ..10 .200 .. operational.191.John..John. rapid.P.operations.of.differences. diverse.metrics.. projects..46 .viewpoints.195.Design. process.Sigma..44.team. tools.of.268.for. process.impact.68.level.32 . integrated..of...(DFSS).66 .networks. analysis.tools.24. process.and. behaviors..and.26.philosophy.Implement.46 ..180. deployment.complexity..methods..of.70.42.268.and.242 Key.267.(KPIVs).31 .variables.changes.characteristics..metrics..concepts.conduct.deployment.analysis....41 Lean.process.62 .masters.46 .of.chains..definitions..of..280 ..(listed).223.cultural. cards.Dr.conducting.initiatives.Kaizen.events.and.financial.32.230.8.level. reduce...output. operational.methods. inventory...240 .workflow... concepts. Step.and.45. operational.45 Lean.136 .137.2:.and..(SMED).5.change..supply.242 Key.4 .136 ..the.105 Lean Six Sigma. voice..274.variables.and.and.improvement...and.production..281 . Step.of.22–25.. Step.improvement...common.setup.align.61 Lean.Six.needs...assessment.the.328  ◾  Index Kaizen.135 Leading Change by.strategies..128.(VOC).and.57 .29 .67 .100.... excitement.....processes.and.for. satisfaction..39–40 Lean. examples.needs.language...55 . communication..of..workflows.46 . Kaizen...129 .46–49.184 .55 .input. tools.. common.90. deployment.needs.and.of.269.and..229–232.......event..236 .296 ..and..19 Kotter.122 .approach..event.62 Kano.(HR).and.268 Kobayashi.. procurement..23 l Language.expert..275 ... Lean. changing..282 Lean. improvements...19.233...25 Lean.resources..3:..change.125.7.design..14 Lean.processes....143 ..258 .stakeholders.78 Korea.Sigma.(KPOVs).90 ...96.30.90 Lean. activities.191 .61.222 .31. initiatives...62 ..137 . six.of.Six.4 .295 .global.....46 .98.5S.231 .needs.36 .46 .Kaizen.82.workflow.24 ...and.analysis. product.49 Key.Lean.. process.. major.237.Sigma.Six.5 Lean. concepts. prioritizing...and..184 Lead....102 .metrics. marketing..metrics..process. reducing..solutions.19 Late.160....collection. process.... basic..1:.evaluating. financial.198 .220 .opportunities.across.69...time. process.. supplier.. data.of.process.P.improvement..initiatives.methods.24 ..projects..240 . sales.125 Korean. human.event..the.and.and...customer.71...44.Kotter.analysis...system.focus.62 Key.plan.. control.280 Lean.32.269 Lean.of... performance.11 Lean.deliveries. implementing. initiatives.112 ..46 .205 ..224 .274 Lean.improvement.... culture.101 Kano..metric.64 .236 ...63..discussing.77.31 . metrics.reasons.and. organizational.14 Lean. methodologies...28 Kanban. performance..231 .. 270 . 18 ..23 ...138 Lean.202 .and..objectives.189..222.time.23 .. impact..57 .

31 .schedule.. alignment.74–75 ..complexity...training. problem-solving.46 . implementation.Sigma.in..process.elements. elements.selection.... planning.process...26–27 Lean.. team..106–110 .. understand.tools.of..operational.cause.of.46 .29 ...76–98 .teams.and.Sigma.pull.time...69 . Kaizen.212 .85.teams..98–99 .29.138 .update..32 .29 .100 Lean.16 .key.Just.cycle.274 Lot.94 Lean..and.(VSMs). 102–104 .training.and..reducing..97 .operations.change..customer. systems.135 Major..of.supplier..cost. implement.112.41 . continually.team. Lean.29 .analysis...Sigma.teams.process. in.supply. create.of.the.. Lean..220 .planning.technologies...methods.Teams.demand.Sigma. high.workflows..3–4.the.15 .content.complexity. low...metrics.Six.operational..24..and..and.26 .sizes.46 ..operations.39 .83 Local..to. high.Six..(Voice.(VOC).277–278 ..case.Kaizen.32. plan.and.TIme.Six.materials.16..unnecessary.and.Kanban.39 ..27 ..38 . financial.workshops).variation..work.36–38 Lean. eliminate.tools..process.networks. supply.Index  ◾  329 . Lean. 24 .Sigma..process.initiative.process.Just..of.. and).to.100 .61–63 Lean..41 ..of. low..Kaizen.yields.champion....58 . continuously. eliminate.35 Leanness..22 . ten.of..and..of. strategies.38 .98 m Maintenance..281 Lean.metrics.14. projects.systems.map..methods.robust.pull. teams.. reduce.16 . project.office.support. visual. strategic..elements.and. supplier.(JIT).. project.key.38 .and..and..the.68 Lean. management..of. building. deployment.26–32 ..systems.30 .33 ...28 .scheduling.70–73 .Maps.. mixed-model.53.12.technologies.14 Maintenance. deploy.38 ... manufacturing.change...event.-.and. flow.of.conducting.. problem-solving.279 Lean.complexity..VOC.business.and. create.38 . analysis...and.and.... low.. business.the.(VSM).Six.unnecessary..and.identification.50 .(middle.system.Sigma. global.Six. 63.Basics.improvement. communication.30. executive.and.capacity.of.Sigma..steps.and. performance.product.33 .26.37. project..system.82–83.and.an..high-level.elements.methods.metrics.32 .environment..and.the..197 . benefits..and.information.designs. project.105.22.in.controls.and. service.(leadership..55.internal.stream. continuous.improvement.29 .. implement.. technology.46 .32 .value-adding.logs.teams..Time.. tools.279 .30 .networks. compensating.37 Link. value..64 .78.and..Teams.update.102 .a.data. root.21. rapid.and.61.Lean.charters.96–98..and. implement.systems..64–66 . develop. evaluating.process.Stream.flow.event.32 .117 . simplification.46 .21 Lean..29 Lean.measurements.chain...event.systems.system.24.in.workshops.(JIT).operations. reduce.29 .143 Lean.161 .product.methods.97 .tasks.deployment.assessment.metrics.100–101 .for. performance.metrics..31 ..system. reducing...of.Six.process..23 .and.36 .55 ....111 .Sigma.and.measurements.and.67–68.142.of.Six.implementing.Value.alignment..57–110.222 .41.of.69 . voice.39..14.chains.... four. Customer).work.control.visual...67–68 .Six.. ten.(VA).277 .improvement.

scheduling..codes.analysis... key...and.265 .168 .. Pareto.205 .data.295–297.46 .254 .toolsets.230. process.296 Minitab®. eliminating.53 Malcolm..264.. Companion..and.89.example. Lean..alignment..analysis.patterns. 198. common.and. control.201 Mistake..99.times.... inventory.66 .Baldridge.189 n Net... Kaizen.296 .206. pull.Baldridge.modeling.204–205..205 Materials.205–207.system.232 .project.system.Companion. repeatability..254 Metric. control.and. define.Six.of.84.(VOC)...66 . Lean.event... resolution.137 .plans.criteria..and.11 . 253.and....... creating.and.255 .product....complexity....reduction. accuracy.229 ..297 .7 . design.189–190 .57. voice.195..behaviors..operations...57. value.135.changes...156–157 .37..statistical... stability...softwear.23..296 Minitab®.296 .270 New.stakeholder.265. methods.. Lean..254.award.shadowing.components.29–30 .29.strategies.flow.7.222 Mistake-proofing.263 Metrics .102 Measurement.32 .and.control. functional.191.inventories.295 Minitab®.products .(VSM)..of. Pareto.stream..proofing. process.162.254..and.278 .61 Mitigation..and.66 Mistakes.190 Miscommunication.increasing.of.207....330  ◾  Index Major.. process.Quality....91 .by..263. financial.procedures.process.Quality.team.(NVA).173.36 .and. Kaizen.higher.promoter... Lean...features.283 ..160 .. 295–298 Misalignment. strategy..45 .254 Measurement..278 .supply..products.46 Market..variation..research.295.247.268 .44.84–85 ..98.Minitab...chain. operational.255 . balancing.196 Nonrandom.285 .of. project.example.240 Malcolm..and.customer. creating.and.296 .207 .....Six.chart.workflows.penetration.230 New. Companion.254 .127.. prioritizing..dashboards.2.scheduling.. 281 McDonald’s.153–154.softwear..and.Six.flow.... balance...teams.254. simplification.21 .258 .and.240 Management.material.analysis..120 .249 . processes.language.a..37 .mapping..Sigma. development.64...and..and...schedule..185 Mandarin.2)..28 .Quality. process.of...level. standardization.reporting.102 . analyzing.253 Non-value-adding.Sigma.. reduce..Sigma.66.29 Minitab.177 .the..20.error.280 .214 New. process..examples.36 Metrics.analysts..system.and....191. reproducibility.tools.(NPS)..data.Software.87–88 ..19 Market..and.of..and. Kaizen.team.38....improvement.testing.129 ..and.204 Marketing.job.254 .systems.74–75. linearity. 176–177 .. policies.research..charts...Statistical.statistical..231 Mixed-model..and.295 .Inc. Kaizen.improvements.and.297 Minitab®..142.66.cycle. market.chart..85 Mathematical. operational.92.methods.score.(Appendix.....map.106 .chart..254 .research.. error.187 . method.255 ...characterization.66 .295 .87 .system.. process.using. buffer.reinforcing....issues.and.

exercise.productivity.and. 69 Performance.chart.29 Performance.barriers..184..188 Outsourcing.expenses.145.in .. rapid...environments.. minute)..the......office.cycle.of.134 Operational...times..269 Operational.60 .19.. critical-to-cost. setup.63 . process.and.143.methods. critical-to-quality. critical.154 ..69 . Kaizen...(equipment.team..... implementing. brown-paper.projects.data.system. standardizing.reports. Lean.44 Operational.70 ..Excellence.or.254 . percentage.69 .W.and..119 Operational..objectives..percentages. 70 .and.(VSM).themes.224 Operational Excellence—Translating Customer Value through Global Supply Chains.168 P-charts....(VA).(units. identifying.change.274. sending...and.269..measurements.55 Organizational..analysis.182..55 Performance.information.(CTC).investment....map..environment.63 . time..breakdowns.269.by.measurements.71 .288 Outsourcing..services.common..(CTD)...63 .269 .247 Organizational.behaviors.232 Organizational. transportation..63 .within.277 .40 Operational.value-adding.184. global..and.of.event.61 .41 Operational. limited.of.assessments. mistake.incorrect.180.11.61 Np-charts. analysis.research.responsibilities...270 .stream..43 .and... Kaizen.and....discussing.55 Operational.149–150 .277 ..map.253.event.. effective... allocated. value.themes..processes.chain.39.61 ..268. mathematical..improvement..69 ..themes.37 Operations ..(VSM).. prioritizing.stream.147 .information.145 Operational. creating.31 ..or.systems.26 Operating.63 .metrics .(VOC).31.38–39 .differences.customer.29 .rate.to.31 Operations.cost.throughput..or..of.production..84 Oracle®..goals.283 Organizational.environments.supply. reinforcing.71.and.cultures..percentages.169..(CTQ).232 .247 Performance.operation.69 .25.. roles.lines..272 Organizational.to.stability. about. people).time.69 .19.Corporaton.products. Lean....269 p Packaging.mistakes..Index  ◾  331 .. cultural.defects.120 Operational..from.change.of..financial.percentages..per. scrap. simplifying... James...57...32 Office..221 Organizational.53.70 . downtime.268 .128 Operational.168.space.of.69 .113 .64 Overproduction.(OR). dysfunctional.performance.282 .structures.of.24.40 ..286 Organizational.61 Office.. repetition.. Kaizen..18..gaps. inventory. value.jobs.work. critical-to-delivery...floor.60 Office.themes...195 Outliers.collecting.activities.supply. rework.and..Martin..9 Organizations. reporting.required....168 . production.safety. voice.233.267 .change .new.workflows.proofing.the.55 ..chains.11. measurement.task.training.content.58 o Obsolescence.(CTS).39 .for..metrics...82 Pareto...workflow....

269–273 .. Kaizen.levels.22 Process.outputs.characterization.inventory..136 Probability.updating.tasks.analysis. changing.. 233..tool.122 Process....and..196–198 Process.systems..and.study...demand..area. obtaining..findings..process.and.242 Process..(SPC).of..243 Process.264 .288..226.57 .200 Process.264 Process.conflicting..cause.231 .Excellence...7 Process...improvement.32 ..185–193.82 .253 Potential. root..30 Process..operations.242 .245 Process.distribution.44 Process..changes.... lack.224 .148.147..activities. reducing. employee. simple.. poor. office.for. work. excess.243 . common..and.. identifying.32..and..walkthrough. across... overproduction.119 ..data....247.258 PowerPoint...243 ..261 Pricing.243 .simplifications.243 .196....process.layouts.owner.......243 ..274 Process.sustainability..104 Process.160–162 Process.procedures)..operations..149.. poor.202..teams.eliminating.53.222 ..240 ..243 ...295 Present.223 .effect.analysis. statistical..279 .supply.121.. full-time. variable..processes.analysis.223...242....168.10 .. elimination.. measuring.using..tools.194..analysis.change.122 .mode.10 Process.audit. examples...process.control.on.290 Process .240 .improvement.60 .. key.236 .workflows.153 Process.workflows. continual..levels.proofing..186.. opportunities. root..222 .improvement.227 .135 Process. implementing.standardization.151.information.of.196 Process.of.required..analysis. methodologies.78 .examples.242 .control..lines.inputs.organization. training. control.and. scheduling.training.methods.improvement...worksheet.variation.reducing.241 .changes.22...191.audits.30..163.237 Process...experts .119 Process..event.239.and..common....and..38 Prioritized. collecting.. lack. strategies.224 Process.of.. mistake. implementing.189.197 . Lean.57 Process.to.. audit. 195–218.analysis.change. 5S.Lean...240.(floor.236..163 Process.. floor.mapping—SIPOC.improvements.complexity.137 .to.of..and.225.mapping.241 Process.cause.281 Process.effects.60..control.(FMEA)..procedures....to.44.characteristics.layouts.effectiveness.technologies..240.78–79. 199–211 .waste ..barriers.281 Process.work...332  ◾  Index Physical.standardization.configurations.. impact..and.141.213 .235 Process..worksheet.188–189.analysis.189 . reorganizing...and.222 .of...questions.137 .151–159 Process.263 .support.scheduling.7. failure.102.prioritizing.185. organizational.failure.57 . cost-benefit.of. training.240 Process.155 Process. organizational.57 .tools.. organizational.procedures..of.and.46 Priorities.271 ..237 .242.barriers.developing.methods..82 Process..breakdowns.approach.. 194–196 .256 .212 . part-time.79 Pilot.141 ..design. analytic.287..185–193 ....243 .training..process.. common.controls.57 .documentation.inspection....234..153.analysis.strategies...distribution. and..process.36 Poisson..283 ..28 Process.185.190.workflow.152.optimizing.teams. organizational...57 .global.. implementation.

. selecting.60 Process.employees.projects..190 .60 Procurement..35–56.84 ..design.18–21 Processes.153 .high-level...279.290 ..and.145 Project.. supplier..203 ..58 .. new..202–203 ....process.188.setup.control. goals.and.and.57 . machines.24 .and.market..processing.. mistake.19.objectives.191 .200–201 .available.42 .proofing.rationalization...assessment..of.complexity..changes.43 .identification.281 Processing.example..18 Product.mistake..map.. collect..identification..workflows.55.events.268 Project.. Lean. improving.220.and. Kaizen.. financial.of. product. control.technologies...product.assessment.129 .194 Project..characterization..and...of. formal...52 .workflow. analyzing.goals.and...the. layouts..37.... . changing.marketing.200 Processes . simplifying.119 .227 .and.150 Product. prioritizing..113 .222 ...chain. pull.proofing . new..288 .deployment.. waiting.(P/L).173 ... preparation.softwear.59 Profit-and-loss.197.53 .process..or.process. waste.55 ..operation... financial.. Lean...261 Project.analysis..of. simulation.Kaizen.119 ..at. breaking... process.43 .charts. manufacturing.151.of..45..service.transport.30 .supply...41–42 ..222 Project.57.examples. .224 .21 ..and.mistake. metrics.goals.50 . Lean.materials. outsourced.36 .high-level.40 .charters .117 .time.52 Project.development.research.. standardization.chain.. Lean.287 .47 Project. value...61 seven.redesign.process.135 .and.. outsourcing.forecasting.235 .137 .50... auditing.. communication.and.59 . three-dimensional..receivable. hiring.9 .24.153 .119 . breaking.stream.exercise.team.forecasting.or.144 Process.research. Excel-based. accounts.142 .57. common.and. process..296 .events.statement.performance..by....workflows.41.208–209 .supply.operations.statistical. analysis...69 ....51.common.environments.motion... value.capacity.(VSM).42 .190 Production.116 .analysis.material.yields.and.and..219..product. project. operations. financial. cost-benefit..77 Productivity ...57 Process.72.systems.11. Lean.. prioritizing.controls.plan. Lean..receivable.. new..(VSM).metrics..and. brown-paper.alignment.204–205 . information.and. balance.. objectives. process..solutions.30 .benefits.142 ..20 .processes.57..systems.and.90 ..forms.flow.model..199–211 .57 unnecessary..32 .50 . office.analysis. performance..of.14.. financial. control..and.classics..24 .233 .38 .36.by.down.of. project...teams..defects.50.50 ..200.55 .for.tools...models.identification.and.205–207 .champions... Minitab®.metrics. unnecessary.map.and.60 .. accounts.Kaizen.27 .business..(SMED).and.227. transfer..work..and.information.or. project.data.identification.and.waste.289 .21 .154 .. example.149 .43 ..of.32 .product. quantifiable.down.of. reduce.proofing.analysis. operational.36 . quantification. implementing.40 . example.and.every.stream....8.115 Product.15.management. waiting.people..and.and.115 Product.measurements.201 .characterization.Index  ◾  333 .

90 Redundancies.organizational.scheduling.eliminating.and.and.37..(COGS).benefits.control.a.275 Rebates....239.4..116 Project.customer...metrics.7 Reichheld. increased.charts.. important..51..45 Project. codes.PowerPoint..232 Resources.227 . typical.analysis..52. .219 Project.102 Q Quality.. single.251 Rapid.60.51–54 project.100 Pull.267–268 .constraints.changes.. SMED. 45 Project.charter..processing.(SMED).296 Project.time.process..and. management.212.289 .274.. templates.40 Quick-response.sampling.systems.Companion..55 .39..87 Red-tagging. Kanban.visual..reading.or.35–56 prioritizing..240 Quantification.. Kaizen.of..team.55.minute. . .analysis.inventory. increased.298 Quality.increases.. suggested.154 .financial. ...Lean.and....events..chains.234 .questions. 31 .communicating. short-term.conditions.risk.identification. generic..projects.assessment.. minimize.production. others.assessment......227 ..of..manufacturing... overview.and.identification—process.(ROI).264.Frederick. 269–273 Relocation. process.sold..identification—process...forms.32 .39–40 key.and.changes.12 Project.80 Reduce. Kanban.transition.supplier...2.service. eliminating.on.scheduling.improvement....control.setup..227 .227 .... . revenue.system. implement.230 Reinforcing.systems.change.supply.15.260 Quality....12 Return.52 Project.100.100–101 .and.chain...... .105.. Toyota.35 Project.daily.controls.46–49 Lean.Companion.28 .worksheets..31–32....demand..customer.297 Quality.technology.227 .89.teams. increased.nonfinancial.investment.36–38 overview..(WIP).presentations.proposed.new..goods.20 Resistance.Lean.230 Red-flag.external. cost.274 .160...in.14...(IT)..supply...227 .50.262 Pull.prioritization.plan.225 Project..avoidance.282 .using.demand... cost..43–44.90–91 .reduction.40 Project.259–260..Roadmap. 43–44 . prioritizing..to.48 Project...teams.15 .213 ..analysis.of ...satisfaction.and.across.161 Push.66.151 Range.improvement.50 project....39 Pull.systems..100 .195 Regulatory.project.267–268 ..and. information.and...definitions.102 .(SMED).227 Projects.91 .dies.to...solutions.benefits.117 .F. increased.behaviors.to.example... Kaizen.297 Quality.cards.22.334  ◾  Index conducting. stable... .satisfaction.examples. implementing..satisfaction.. allocation...work-in-process.leaders. expense.activities. and.227 Proposed.Companion’s.212 Projects .global.. change.103 .189 r Random. assigning.system...of..methods..cashflow.metric.225 ..of. summary.100.269 Projects.projects..32 .267–276 .of .28 Recommendations.employer.. resistance.product.259.56 .methodology...of.plan.exchange.

.tools. accounts.stakeholder.and...a....190.and.. identifying.219.and.142.and.119..227 .opportunities..91 Six..3..223 .exchange.167 ..200 Risk.11.26 .92.170..methods.planning.analysis. Accounting. percentages.world. change.233 .assessment....change. process...160 .and.225 . creating...knowledge.collection.and.115.analysis.. opportunities..214 ....and..separation.285 .. concepts.. deployment.business. disorganized.solutions...reduction.277 .and..237 ... reinforcing.(SMED).recognition.279 .mode. implementing.and.192 ..287 Simulation. data.90 ..196 Service. follow-up.. data..breakdowns.274.increases. process.53 Simulation. cost-benefit..and.analysis.. infrastructure.and.. activities.. 272 .improvement.. standards.278 Roadmap. cost-benefit.288 .194 ....and. histograms.team.rating.focus..processes.dashboards..chains.diagrams.projects.improvement.and. organizational.systems.288 .184.and.222.analysis.and.188 ..136 . Kaizen.team. Kaizen.150.223 .Quality.2.office.. example:..the.2.and.64.281.Companion.(FMEA).events.121 Service..... 270 .287..of.and.Financial.and.19.inventory.Index  ◾  335 Revenue.196–198.change.change.time.of..221 . communication.Sigma . 90.(C.231 Rework..202 Scatter.. accounts.and. cause-and-effect.and.. process.192 .and.204 Sales..systems.157 .164 .change.and..202 ..263 ...across. common. metric.setup.marketing..supply. project..and.8. change. reward.116 ...analysis ..effects.141.236.286..events.290 .135 Sharepoints..breakdowns..202 Sales. process.model.environments.readiness..improvement... waiting.behaviors.287..professionals. process.162.269 Simplification.minute.operations.273 Shining.182 ..204 .36 Reward...137 ..priority.prioritizing.receivable..1.improvement.process.135 . reduce. building.team.and....example. process.125 Single..272 Service..286.plot.across.192 .new.. loops.estimating.minimizing. level...212 .dies. 255 .(FASB)..global. aligning.and.. example.115 . level.31 Sarbanes–Oxley. process.and.analyze.management .Board.272 .39 .global..292 Singapore.23 .workflow.96 Setup.. 180 .(S&OP). failure. level.processes.. Kaizen.7 .80 Sharing.analysis.promotional.286.map..industries. improvement..supply..Services.282 Scrap.67 Service.and.across.E).232 .strategies.Lean.process.261 ...recognition.113 .. conducting. collect.workflows.195 .25. operational...240 .143 ..capacity....cause.117 Root.transition..analysis. Kaizen.40 .and.activities.characterization... changing.&.(RPN).. 222.changes..286 .receivable.200 Senior.and.process. key..(SMED).systems.297 Role.analysis.258 Road...of.285.195 .171.282 S Sales. workflows..80 Simplification.activities.and.data..case.for.chains..time...30 .percentages.134 Scrap.197 .rework.77.and. control.a.

22–25 ...and..improvement.191 SMED. outsourcing.....metric.and.networks. key..184 .across..chains..characteristics.business..(FMEA)..61 Six.. 160 Six.Asia.waste.of..98 .(huddles).methods..and. inventory.21 process. reducing...and.reading...and.268. organizational.measurement.42.137 outsourcing. 177.296 reinforcing.process.33 .Sigma. .and.sampling.....205 .297 Small.280 . building..18–21 .11 Six.. organizational.teams.242–243 . Kaizen.analysis. voice.17 .. improving.61 Six.processes. process.and. .111.steps. 244–253..259 .tools.Sigma.team. how.variables...51 Strategy. Kaizen.improvement.(DMAIC).a.(KPOVs).process.5 .behaviors. control.effects.solutions.159 Stakeholder.statistical. other.244 ..35 ..supply.and.. analyze.and..and.analysis. suggested.template..196.53 . ..reduction...and.incorporating.lean..Sigma.295 .61 .89.Sigma.to.162 .261–262 ..240 methodologies.Sigma.92 SMED..63.of. communicating.change..of.control..input..189.30 .and.Sigma. .296 Stakeholders.business. components.41.25.“belt”..259–260 .global.Sigma.plan...new..129 .processes... deployment..tools. 255–257 .and. . building.process.and. tools.new. methodology..deployment. define..and. general.61 .plan.activities. management.tools. important.analysis.a. deploying.Lean.in..analyze.and.extensive.the....variables.control.softwear.142 Statistical.Sigma. define...270 ...initiatives.of.(SPC).10–16 .. 269 .32.dashboards.for.. reinforcing. statistical.breakdowns.295 Minitab®.five-phase. commitment..analysis.168 .3–34.change.analysis. (define.. control..61..Quality.deploy.. examples.events..239–266 ..change. Lean.process.and.work. overview.214.system..strategies.methods.223 ..analysis.project.complexity. key. softwear.System.224.(VOC).222.240.a.improvements..10 .activity.into.principles...for.61 .from.statistical..281 . improve.128.customer..152 Strategic... process.258 .(KPIVs).67 Six.system.measure.alignment...263 . supplier.satisfaction.improvement.collection.229 Standard..diagram. 254 Six... key.....identifying. ...and.178 .error..team.elements. Kaizen..191 Six..280 implementing..example.122 process.meetings.222 .296 mistake.... Kaizen.behaviors.5 .241 .267 ...9.61 .96 Solutions.group. .output..244 .collection. data.30.222 .19 Spaghetti... projects. measure. Six.measure...92.requiring.questions.case. data.8.22..problem-solving. overview.224 ...184 .Minitab®..150.26–32 ..281 .244–253 Southeast. follow-up.methods.264 . failure.159..system.to.execution.240 . data.254 .phases ...system.change..226..methods. work..and.253 .control. important..261.3–34 .16.142. 24 Six.proofing.gaps..and.tools. 177 .support.mode.151.proposed..137.projects.initiatives.336  ◾  Index events.control.controls.122 .analyze.improve. .of.performance.239 .analysis.Sigma..change.control).. projects..implementing..155 Standardization..analysis.244 Statistical. measurement. creating.improve.178 .changes..requirements..case.and. Companion.process. quality. methodology ...and...and. control.. key.three.60 Statistical..variables.data.methodologies.

cells.just-in-time. within.170–171.72...... utility.88.environment.conducting.is.33 .274 Transition.of.....37 Total.jobs.202 .117 Testing.management.74–75 . functionality.maintenance.and. (SIPOC)..Parcel.systems.motion.good.and.12 Total.complexity.38 United..32 .69 u U-charts.chain..rate.(IT).obtaining...of.eliminating.movement. assigning.process..time.30..control.171.Production.77.. summary.30 t Takt.concept...and.. key.productive.and.31 Supplier.expenses. process..States..reducing.importance.77 .total. benefits.flow.77 System .operations. process.sampling.analysis.17.... (Frederick.63 .93 .scheduling. calculation...8.Grow”.content.strategies..process...Reichheld.87 Transferring.236 Travel..(TPM). what.Kaizen?.(COGS).systems.164.of.92.......75 U-shaped.forming.97 United.98–99. procedures.67 “The.93 Total..105 .members. information...114 . calculation—original.and.....117 Team..to.145 ..performance.100 Unnecessary.or..Harvard Business Review article)..System.. value-added... process.77 Toyota..92..163.workflows.modified. production.87..stream.studies.(TPM).(TPS)..pull.182 . improvements.work. 210.materials.. process.. 92–93 .37 Team.253 Trial.15.76..282 Top-down.(JIT).data.92 v Value..Index  ◾  337 .136 .249 Unionized.189 . global. supply.63 .of...4–7 Stratified.73 . (TPM) Toyota..28..37 .reducing...103 .preventive.95 .workflow.118 Supply.prioritized.Need.. dysfunctional.work.map....manufacturing.information.63 .85.develop.maintenance.. constructing..and.availability.76 Training.training.93 System.128 Teams.. 100 Toyota.and. relative.....new.several.163 Supplies.157 Supplier.You. “Preventive…Autonomous…Predictive”..equipment.28 Trends..16.152 Summary. just-in-time.chains.149–150 .210 .37 System.211.system.maintenance.10..Number. “Lean”. developing.series.8..for.of.233 Unit.workflows..sold..278 .waste.run..in.. 60.184..graph. predetermined..and.63 .cost.. see also.(VSM).127 ...38 . of.. dysfunctional.batches..74 .Service.and...117 .59...support..production..230 Time.63 Value..technology...initiatives...82 Time..(SPM).networks.38 ..state.preductive.identifying.. time.batches.61 .210 Supplier-input-process-output-customer...(JIT)... analyze. price.and.expectations.58..products.31.96.breakdowns.101 .and..137 Transfer.61 Unnecessary.. calculation—future.standardized.One...57.63 .services..

and.and. reducing.. three.63 .40 Wal-Mart.and.and.121 .analysis..of.case.customer.153..269 Work.and.84 .new.software.alignment.53 ... Kaizen.process”.customer. example.63. translating.shadowing.the.. strategy.model..development.and. Kaizen.complexity. Kaizen...data.analyzing.and.63 .unnecessary.11..customer. value.workflow.events.exercise.in.time.with..planning.systems.73 .60 Work ..identification.338  ◾  Index brown-paper.(VSM).patterns..eliminating..122 . outsourcing.and..and...and..and.61.. example.and. Variation..129 .about..145 Value-adding..and. Lean.163 .the.workflows.analysis. prioritizing.themes.workflows. eliminating..duration.characterization. critical.61 ..44 ..proofing..for.30.workflows.29... process..alignment.154.themes. just-in-time. critical-to-delivery.and. visual.create.106 . quantification.150 .basics.31.workflows..and.analysis.safety. critical-to-cost..change.70–73 data. Lean..279 .(VOC).workflows.89 .7..process.space.27 .71.30.of. ..146 ..79. Lean.(VA).. 120..for.of.systems...280. .182 .of..system.collection.controls.systems.and.17 . reasons.mapping–SIPOC. reinforcing..operations.. eliminating..21 .Sigma..control.and..setup.system..27 . process.unnecessary.280 Voice.117.business.207 .7..event.145 .U-shaped..242 .receivable.business.pull.the.144 ..activities.of.themes.253 .37. process.and..38 .. common.63 . just-in-time..(JIT).58 “Walk.time.91 .job.of.Sigma.100 Visual.129.38 .of.projects.281 ..flow.and.information.and.. example.processes. activities.rooms.156 .team.and...63 ....135.characterization.to.10 .workflows. process.115 Waste.118.127. implementing. process.of..62.of.. 141–148.120.changes.(JIT).90 .76......map.72. critical-to-quality.195 Work.139 . 32 Voice.115.setup.and.. quantification.. strategy. workshop..cells.of. voice.stream.operations.205 ..280 .(CTD).153 . process.solutions.106 .156 Waste.and.71 .43 ..time.change.21 .83 Work. outsourcing.129 . process...by.accounts.behaviors.. Lean.motion.and.of..operations.63 .of.(VOB)..steps.requirements.basics.105 ..95 War.202 .61–63 W Waiting...analysis.multicultural. voice.10 . reduce. 74 ....product.cause.of.(CTQ).26 .(VOC).11 ..implementing.material.to.(SMED)..(VOC). example..... Kaizen. organizational.Six.187 .67 ..176 .222 creating.. collecting.systems..144 .Six.84 .Six.operations.37 .and.major. project. Kaizen..the.39.of. pictures....26–27. common.performance. standardization. standardization. mistake... reduce. .environments..process.environments.create.211 .(CTC).and...office...74 .implementing..the. balance.87 . alignment.and.70.146 building.35 Work.a.(CTS).37 Work..150..279 .7 ..operation.79 Visual. elements. calculating. process..131...Sigma.themes.251 Visio®.and. objectives.....supplier...164.(SMED).7 building. understanding.....new.to.process.212 .3 ..... ten. process.. ...

.278 . Internet-based.76 X X-bar...285 .119 ..104 Workflows.31..chart. internal.251 z Zip.120...43 Work-in-process...(WM).104...stations. reducing.inventory.codes.84 Workflow.277. overloaded.management...Index  ◾  339 Work.247.173..60.166 ... 105.systems.66 ..(WIP)..

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