Lean Six Sigma for the Office

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

Lean Six Sigma for the Office

James William Martin

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

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

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

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

i  ◾  Contents

2

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

3

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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prioritize.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 $ 61.643 Comments Team Information Team Leader: Team Members: Name Role Expertise % Time Figure 2.projects.already.to.deployment. improvements.are.performance. prioritizing projects Prioritization. is.3 project charter example.strategic. most.643 $ 56. projects.4.6 K ($15 MM) *(15 Days/365 Days)*10% = $61.resource.include. e average A/R balance is $15 million between 31 and 60 days.above.identified. to..prior.objectives.identifying.2.There..in. productivity. important.performance.close.to. 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). of.an.been.Some.used. ensure.minimum. e result is lost interest expense from money that should be collected no later than 30 days from invoicing.can.organization’s.and.projects. .expenditure.Figure.These. that.an.have.their.be. also.and.000 $ 5.gaps.000 $ 56.to. over.analysis.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.goals.of..the.common.are.strategic.that.through. $10 million between 61 and 90 days and $5 Million over 90 days.obtained. To reduce the accounts receivable cycle time by 50% in the 31– 60 (15 days) to save $61.strategies.are.643 $ 61.that.643 $ 5.gaps..shown.of.with.several.

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

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

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

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

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

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

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

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

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

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

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

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

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

As.designing.helpful.calculated.means.in. as.of.types. system’s. at.the..underloaded.tasks.second.demand. to. multiplied.80. is.one..the.practice.overloaded.time.types.situation.Figure.is.unit. is.ayout.IT.stations.in.due.or.per.is.. process.useful.is.across.the.first.in.are.minutes.operation.process.. the.in.or.waiting.one.systems.non-value-adding. operation.analysis.unit.84  ◾  Lean Six Sigma for the Office As..Also.the..cost.stations.work....a.analyzed.common. in. This. and.to.are.work.. without.inspections.at.required.in.technology.services.workers. time...made. . setups.anywhere.process. a.layout.including.value-adding.removed.9.6.6. takt.these..systems.if.units.minutes.IT. takt.an.added.per. eight.per-unit.time.concept.earlier.in. theory. not.time.be.per.unnecessary.is.to.have.environment.one.to. work.functional. demand.. implies.takt..of.required.and. its.and.hour).such.the. a. flow.physical.at.time.to. or. the. tasks.chapter. significant.a. a.improvements.This.are.production.example. of.improving.it.of.applicable.. a.its.an. available. if.be.workflow.balanced.will..analysis. cycle..the.that.of. are.be.capacity.and.time.process.relative. have.show. hours.research. to.a.excess. as.the.a. But.adequate. capacity.work.by. the.the. of.and..by.day.which.is.linking.relative.can.these.completed. one.information.that.unit. In.provide.completed..The.or.flow.minutes. standardized. l .global.by. and. information. underloading. created.work.to. workflow.complexity.3.it.is. exceeds.office.system. still.day.480.step.the. machines.(NVA).(OR). station.layout. practice...additional. interruption. external.of.interfaces.within.in..in.high.minutes.dynamically.example.can. IT.analyses.types.available. Balance Material Flow Once.The.have. information.and. time.in. no.or.as. implies. impacts.degree.area.. a.As.and.is.takt.if..of. has.an.of.world..to. work.those.these. over-..met.production.global.similar.production.moved.However.is. an.in. system’s.are.the.systems.OR. time.units.work.these.in.and.(8.through.of.. are.a. from.office.key. been.and.their.products.other.but..On.an.per.capacity..information. or.. is.(IT).time.office. identify. (VA). flowing.shown.analysis.immediately. operations.calculated.environments.goal.completed.materials.the.been.are. balanced.demand.methods..a. linked.tasks..takt. exceed. allowed.eliminating.. has. that.divided.types.such.or.is. As.the.content..operations.should.directly.how.a. and.very.is.methods. time.similar.environment.or.using. six.its. to. operations.queuing..work.as.must. the.then.varies. to.Balanced.second.operations.capacity.even.3.. example. This. operation. an. process.be.other. is.As. this.principles.analyzing.automation.by.time. requirements.equipment.a.subsystems.rate. eight.of.an.per-unit.virtual.particular..of. related.calculated.which.a..people.in. time.be.60.every.. As. Every. map.the.when.key.must.OR.floor.hours.an. per. work.be.3. comprise..to. day.per.of.work.must..this. there. group.8. words. operational.stations.discussed.material.minimum.materials.in..then.more.people.or... system’s. operation. station. example. of.After. system’s.increase. another.global. that.system.hand.work.available.takt.almost..keep.reasonable. no.the.the. In. to.information.every.reduce.of.. that.number.hour.and.station.of.Figures.

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

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

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

.15 7.88  ◾  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.d.2 transfer batches.

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

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

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

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

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

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

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

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

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

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

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tools. table 4.4.kickoff. meeting. other.purpose.prior. kickoff..kickoff. 4.team. is. manner..days.greatly..will.c. an. Kaizen eent Kickoff Agenda At.is..c. Calculating takt time.to.. Lean. a.It.Korean. event.A.opportunity.schedule. has.regarding.the. conducted... Learn how to build value stream maps.review.assessments. 5.meeting.kickoff.Good.ask.be.called. in. 4.completed.significant.several. planned.tools.. Analyzing value steam maps.work.business. one.using.on.a.improvement. People return with data collection forms completed.operational.was. tools..this.and. team’s.integral. Assign people to specific work streams.that. workflows.b.provided.the. 5S opportunities.and.meeting. to. collected.in.to.This. Mistake-proofing opportunities.methods.were. of.with.is.the.start. data. basic.a.shown. that.good. 2... that.to.also. Lead time reduction.the. 4.translation. 3. .and.training.activities. been. 4.of. Building value stream maps.forum.Japanese. collect.delivered.their.members.place.the.belt.starting.an.over.training. Kaizen. methods.multicultural.process. that.agenda.to.benefits.simultaneous. a.is.126  ◾  Lean Six Sigma for the Office After.group. to.that. analyze. discuss. Six. any. that.take.their.During. team.important.and. A. and.Kaizen.the.discuss. ensures. completed.to.and..this.a.questions. standardized.may..enhanced.what. and.2 Kaizen eent Kickoff Agenda 1.management. will.of.productivity. a.team.a.e.take.meeting.projects..countries. and.black. data. in.also.The. team. everyone. a. Kickoff meeting.b.team.d.of.schedule.begins. has. help.taught.2).(similar. Changing the process.communication. financial. Lean basics. and.members.the. their. process. their.responsibilities.roles. 4.a.local.is.a. 4. meeting.team. in.the. from. and key metric information is put onto the value stream map.a.Table.participants.place..this. 3.understanding.and.as.event. 3.The.for.provides. 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.reviews..event.in.English. 3.upcoming.various.the. operational.review.and. Sigma.methods.event..next. which.of.

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

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

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

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

e-mail audits. With respect to equipment. 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.. job type. Scrap %.e. Also. Count the number of transactions that could not be used in production. the system will time-stamp all transactions within a process workflow.. Audit operations through interviews. People can also be “shadowed” for several days and their activity times recorded at 15-minute time increments. and shadowing to identify rework. employee. 132  ◾  Lean Six Sigma for the Office 2.5 How to Do It data Collection Strategies in Serice operations Bring the team together and create the VSM using sticky notes on a wall. 4. reports that were not required. etc. Count the transactions exiting the process and divide by the hours or operation. i. etc. shift. Check financial and operational reports for material or direct labor waste. Alternatively. an audit could be done on completed transactions in e-mail by operation (sent mail).table 4. any work task with a prefix of re such as re-analyze. e-mail audits. . Production rate (units/ minute) or operation cycle time. Rework%. i. checking personal calendars will show meeting times that in many situations are non-value-adding. Ideally. Count the number of transactions that passed through process operations more than once. Create a value stream map of a process workflow or a floor layout of a single work area. re-inspect.) 3. time of day. materials processed by equipment could be measured or counters designed into equipment can be checked to calculate production rates. redo. This can be done by operation.e. Then “walk-the-process” to verify the VSM. VA/NVA/BVA. Audit operations through interviews. Check financial and operational reports for material or direct labor rework. marketing prototypes not sold. and shadowing to identify scrap. Metric Data Collection Strategy 1.

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

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.

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

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

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

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

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

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

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of. a. 85.0 30.0 23.audit.0 17.0 24.0 18.such.000 3.to.initial.0 72.0 63.depend. is. useful.0 69.be.can.9 17.accounts. collection.0 22.one.5.advantage.that. Total Process Workflow Cycle Time b.environments. Inventory Efficiency (Turns) l.0 70.conditions.their. projects.scrap.0 26.0 1.154  ◾  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.including. quality.detailed.(VA). Profit/ Loss k. Percentage Scheduled Jobs Missed i.application. Inventory (Units in Queue) 9..0 73.000 5. through.a. either.7 4. a. Setup Time (Minutes) 8.0 2. Figure.also.industry. immediately.use.good.50 420 Date: July Auditor: Joe Takt Time: 8.8.800 3. to.. event. or. and. .lists.several.and.0 33. follow-up..1 76.7 85.improved. (NVA).0 30.which.1 1. Lead Time o.that.75 50 $1.8 100.0 25.other.implies.0 20.0 18.source.0 15. that.0 1.0 2.chapter.be.0 16.7.0 19.0 20.process.simplification.done.advanced.we.5.a.8..may.000 10.Figure.0 16.prioritize.7.0 13.and.called.0 52.number. Number of Customer Complaints d. performance measurements (similar to Figure 3. condition.0 25..8 1.1 62.lists.office.0 15.2 1.0 29.similar.additional.the.0 18.an.changes.5.0 9.to.“frequent.0 21.0 2.improvements.2 26.to.0 100.job.0 16.could.of.tools. in. Kaizen.7.reduced.percent.0 1.process. example.in. important. Production Rate (Units/Time) or Operation Cycle Time 3.those.0 19.example. First Pass Yield (Rolled Throughput Yield-RTY) j. Floor Area Additional Metrics (Depending on Industry or Function) a.two.time.5.0 20. data.5.Figure.0 17.percentages.of.0 16. been.commonly. using.5.any.4 58.the..0 12.a.This.Figure.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.in. impact.in.this. Schedule Changes q.value-adding. as.specific.7.a.0 2. Rework% 5. Number Employee Suggestions e.office.a.to.a. perspective.3 60.0 25.0 23. is.whose.0 21.negatively. using.As.the.0 18.methods.using.0 27.0 19.several.a.0 74. Value Adding % 2.0 13. information.categories. initial.percentage.shown.1 78.at. On-Time Supplier Delivery m. an.000 10. it.environments.1 75. proofing.0 50.7 1.example.VA.in.0 14. Unplanned Orders p.more.1 1.shows.0 15.This.total.measurement.Figure.process.9 14.of. Forecast Accuracy n.as.0 64.0 14.5 81.4 31..combination. shown...from.0 27.be.1 24.6 27.of.0 22. Excess & Inventory 15.projects.0 16.0 1.classic.0 15.that.0 8.analytical.0 18.other.0 55. Material Availability t.approach.in.The. because.000 18. be..contained.metric.0 19.time..process.collection.of.000 5.7..efforts.mistake.3.0 21.5 1.5.process.level.classifications.of.000 16.increases.changes.0 14.15.0 29. As. a.5 24.0 55.possible.5 87.0 5.0 11.rework.percent.1 6575 Average 15% 26% -27% -17% -14% 42% -17% -30% -34% Figure 5.on. Warranty Expense/ Incidents f.the.Figure.in.0 16.value-adding.provide. of.Kaizen.0 19..metrics.0 21.9 30. Downtime% 6.how.analysis.issues. time.0 20.0 13. other.team.was. have.percent.As.000 5.0 13.800 Week 9 Week 1 Week 2 Week 3 Week 4 17.0 18.4 30.shows. from.0 17. increased.4)..000 10.0 15.for..a.payable.0 20. There.in.to.shown.0 14.0 21.9 56..same.0 24.0 63.Figure.Figure.”.can.the..An.0 24.137.in.be.will.audit.of.and. because.5.be.Lean.0 16.0 17. information.000 5.to. operational.increases.list..000 10.template. Annualized Savings h.the.within.0 24.is.analysis.demonstrate.0 65.several.the.0 66.1 1.a.0 68. Data Accuracy s.2 1.job.0 28.standardization.0 54.0 62.0 28. Returned Goods Expense/ Incidents g. the.Kaizen..team.000 5. methods.time. shown. Overdue Backlogs r.in.0 20. to.This.0 19.7 99.9 72.or.000 10.a. baseline.0 10.through.3 1.2 1.function.0 10.3 63.additional. are.will. non-value-adding. that. both.0 55.issues.3 92. The.800 3.performance.0 60. Capacity (Units/Time) 7.template.0 63.. several.but.0 12.red-flag.17.order.0 16.8.800 3.0 25.0 17..data.red-flag. Number of Problem-Solving Teams c.of. schedule.identify.Later.of.a.15.can.0 28.the. Scrap% 4. an.is.

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.may.within.50 Takt Time: 8.this.as.00 $52.9. number.can..The. Jobs had to be walked to another department..reduce.be.down.be. These.percentage.to.to.for.lead.context.can.should.Figure. machine..5.analyze. and.50 $9.5. the. Figure.due. conditions.50 $0.In.their.template.5..increase.and.template.to.a. issues.75 Date: July 50 Auditor: Joe $1.expediting.its. important. broken.Figure.accounts.will. and.in.its.activities.as. increase.shown.waste. Lack of clarity regarding start of invoice.operations..and.or.of.improvement. The.cost. payable.due.time.the.commonly.value-adding. In.50 $0.situations.greater.also. In.serve.projects. lower-level.to. Figure 5.causes. into..factors.process.schedule.manufacturing. As. every.8.causes.occurrence.root.process. spent.miscommunication. root. metrics.be.00 $15.50 47% Jobs could not be completed due to incomplete information.75 $10.processes.00 $0.of. time.wasted. red-flag.either. Had to call supplier several times..the. elimination.the.00 $75.investigate.Kaizen.customer.00 $52.may.50 $21. of.the.at.00 $13. modified.in.excellent.of.reduce. is.a.of. analyze...a.50 $0.The. shown.00 $22. breakdowns.occur.level.a.changes.sources.a.50 $0. in.time.then.of.continues.00 $75.of. also.due.50 $79.myriad.. or.the.and.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.process.00 $7.workflow.8. Jobs were released at the end of the shift.50 $0.operational.these.a.. down. to.25 $15.lack.00 $0. well.requests.a. Employees confused as to work task.will.the.of.to.5.workflow.materials. .probability.operations.shown.and. Jobs have been pending for weeks.team. at.8 process audit worksheet. Job was rushed due to poor planning.time.also.. Jobs for these suppliers are run once per year.occur. the. other..time.for. its.9.increase.This.or.within. operation.00 $19.drill.5 10.issues.(VA).team.in.“standard.will.into.error.137. Employees did not have information to perform job.template.a. Work procedures can be made more efficient... Jobs required several sequential operations. New employee not familiar with tasks.analysis”.process.Figure.00 $10.will. useful..the.. example.used.eliminate.within.00 $30.office.issues.lead. 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. shown.causes. be.of.as.the. other.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. reasons.teams.the.root. Jobs required three signatures.the.Kaizen. Work tasks that can be eliminated form the process.50 $535.changes.

which.represents.of.time...be.3% 45.this.9.operations.just.be.process.85.data.the.relative.137.accounts.may.in. 25.As. .would.in.good.these.event.team.within.the.time.2% 16 44 37 4. of.the.or.workflow.and.1..non-value-adding.gather.are. reasons.wasted.focus.In.This.non-value-adding. one.very.are.total.is.Figure.similar. Kaizen.the.longer-term.a. major.2.a.9..reflective.on. time.analysis”.jobs. non-value-adding. within.categories.the.time.estimated.components.Recall. 357.45.a.in.These.already.payable.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.an.process.9.minutes.5.time.3% 10...a.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..Kaizen.percent.shows.process.9% 11.ensure.of.part.down.5.357.broken. or.the.equated.example.Perhaps.if.. process.how.represents.“summary.Figure.to.3.was.minutes.lower..8.the.baseline.several. more..4% Figure 5.for.analysis.focus.as.event.template.9 Waste analysis by operation.of.waste.percent.the. the.operations.5% 12..To.information. for.performance.the.a..of. time.5.of.across.a..can.percent.be. long.one.also.a.at.first.that.time..discussion.75 50 $1. the. to.summarize.approximately..also.estimate.of.focus.the.. of.to. the.performance. time. from.total. should.either.5.level.waiting. shown.place.It.of.Figure.job. be.total.Figure.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.to.priority.10.accounts.percentages.our.. cycle.to.issue. identify.in. the.50 420 Time Due to Defects Date: July Auditor: Joe Takt Time: 8.which.waiting.useful.

working.attending.and.nonvalue-adding.components.tasks.processes.useful. directly.20.extensive.work.often. In.be. payable.examples.manufacturing.than.is.linked.tasks.records.team.. .is.In.10 Summary of waste analysis for seeral jobs.work.this.is. spent.managers.used.. work.time..shadowing.4% 0 357 100.because.require.complicated.example. information.activity.work.cause. spends.do.associated..shadowing.the.beginning.an.because.occur.with.in. process.of.employee.root.work.meetings. tasks.to.the.when.which.not.which. the.proximity.discussed.very..make.at.service. Job.event.several.improvement. useful. be.2% 5 1.places.analysis. shadowing.not. complex.from...an.of.by.is.the.work.work.their.workers. an. It.industries.a.an..use.who.jobs.0% 0 0 0 0 0 0 0 0 Figure 5.of.This.analyses.as..Typical.Kaizen.that.employee. include. description. another.extends.words.in.3% 37 10..a.may..9.may.that.but.hours.As.The.by.methodology.9% 40 11.employee.job.process.found.and.a.structured.those.and.other.comment.only.an.collection.. it. related.for.result.context.information.may.standardized.both.is.137.have.job.(NVA).analysis..where.analyst.used.standardized.However. to.facilitates.or.of.useful.changes.capture.a.are. her..As.NVA.In.inordinate. job. and. more.percentages.Using.with. spent. his.be.in.an.As. their.shown.systems.large.the.professionals.a.is.collection. to.to. is.diverse.within.the.possible.Then.flow.actions.flow.electronically.heavy.just.have.levels..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...operational. or.final.Quantitative.or.repetitively.should.the.involving. number.process.within.computer.greater.a.. or.meetings.3% 164 45...several.time.over.work. major.this.time.of.5% 44 12.50 420 Date: July Auditor: Joe Takt Time: 8..templates.useful.during. to.5.show.at..amount.may.simple..data.data.a. performing.or.job.method.track.increments.on.tasks.process. in.office.observer.noted.. associated.and.and. not.not.shadowing.more. templates.template.information.at.work.a.“job. and.operational.of.is.job.5.available.time.of.sequences.will.professionals..required.the.an. shown.tasks. in. that.calculated.Most.Figure. data. also.shadowing. more. is.it.an.tasks..such.by.. complex.assessment.these.commonly.are. adapted.directly.time.percentages.in.the.Kaizen.components.days.it.improve. is..to.by.an.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.this.are.situations.it.. method.is..15-minute. except.75 50 $1.are.and.example. reports.useful.on.over. information.are.and.activities..time.to.days.of.11.analyze..working.that.analyze.... collection.method.8. similar.4% 16 4.be.to. easily.office. 5.shadowing”.Typically.with.It.is.other.procedural.repeatable. Figures.major.work.an. job..characterized.event.that.effective. tasks. the.using.time.of..and.

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

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.

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

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

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000 5 100% $1.100 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 5.100 $171.700 $42.400 $66.000.000.000 $2.25 high inentory inestment—first leel.000.000 64% 17% 7% 4% 4% 4% $638.000 $1.900 $42.Reason (Issue) 134 36 14 9 9 8 210 $10.000. .900 $38.

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164 Inventory Investment Due to Canceled Orders ** Subject to verification Data Collection and Analysis  ◾  181 Figure 5.164 134 100% $638.337 A1 A2 A3 A4 Count Percentange Estimated Impact** Project Inaccurate schedule Late delivery Missed Schedule Unknown Total $638.862 $514. .27 high inentory inestment—second leel.341 $47.624 $33.Root Cause (Canceled Orders) 9 108 10 7 7% 81% 7% 5% $42.

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

5. Invoice is sent to customer. Customer fails to properly receive an order resulting in receipt of damaged items.root.may.entering. Figure 6.be..first.product.request.a.address..basis.may. Invoice is not created due to missing information or is created using inaccurate information.or.operation. Invoice creation.even.ordering.project.order.customer.information.common.inaccurate.Kaizen.customer.these.the. or.a.In..systems. arrive damaged or late.of.if.as.of. Order accuracy check prior to shipment.or.are.receivable.related.of.for.product.may.process.or.product. 8.serve. and amounts are entered into the system or incorrectly converted by the system.. the.an.name. surplus.in.However.a..part.issues.correctly..customer’s.quantity. one. Failure to discover missing. 6.4. 7.this.a.taking.automated.the.an. Customer places order.analysis. 2.this.include. or damaged items prior to shipment.service.error..incorrectly.product..a.a.. Incorrect names. 3.eight. Order is sent to customer..order.misinterpreted. its.a.accounts. Invoice is paid by customer.process. Failure to protect order from the environment.process.At.team’s.4 example 2: Accounts receiable. Order is lost or potions of the order are lost. item.operations. places.. .second. type.operation.in. Typical Issues Incorrect quantity or product is ordered.charter.in.could.an.for.type.employee..orders.the.Any..customer.may.product.step.to. failure to discover missing or surplus items and related issues.shown.a. Order receipt.This.of.incorrect.In..team’s. 4. addresses.the.6. misinterpretation. Order processing.a.causes. Invoice is sent to wrong customer or delivery not verified by supplier.This. an..have.similar.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.become.the.the.of.Figure. is.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

back.how.8.2.owner.benefits.process.regarding. documented.it.example:..going.topic.there.also.responsibilities. day?.was..control.implementing.a.interaction.and.an.this.any.be.in. controls.Finally.documented?.as. a.defined.organization.the. control.initiative. Have people been trained to use the new process controls? 5.systems.changes.throughout.ensuring.forward?.are. its.that.communicated. in..and.analysis?.the.is. Did the project’s countermeasures or solutions provide the expected business benefits? 7. provide.useful.back..important.owner.reached.may.organization’s. roles.For.Over.an.process.was.mangers..a.deployed. between.been.known.required.an.easy-to-understand.process.important.the.improvement.and.7. sustained.be. first.How. using.measured.its. a.reinforce. is. a.all.very.has.been.project.fully.to.are.day.a.plans.this.the.local.to.project. the.the.effective.team.know. Are the process controls effective? How do we know? 3.people.by. into.eliminated.process.consensus.integrated..be.risks.process.new. during.management.questions.These.within. transition.controls?. every.obvious. the. control. expected.work.may.process. a.new.in.and. Have all control systems and reaction plans been documented? 4.Chapter.be.ask.Kaizen.in.the.This.and. table 7.been. manner.the.more..smoothly.key.it.process. day.will. formally.that.Have.Building a Business Case for Change  ◾  225 websites.Are.and.process. root.. step.cause.team. a.should.successes.an. Are there any known risks to the project? .will.the.project.team.is.a.. will.its.with.tied..controls.Have.be.proceed.how.A.In.Have. problem.otherwise.. be.root.project. business. if.Table.important.problems..Local-level.Can.this?.recommendations.we. and. questions.talking.2 important project transition Questions 1. cause.because.initiative.systems.be.the. have.should. and.listed. project. project transition At.various.use.. event.team’s.to. this. Are.questions. How will the process improvements be measured going forward? 8. Kaizen.employees.similar.trained.reaction.to.what.organization.increase.. Can the process controls be sustained day to day by the local work team? 6.in.the. transition.the.Kaizen. information.larger.do.and. been.plan. to. through.key. project. become.will.with.project. documented.project?. its.the. solution.benefits?.process. be. the. answered..team. Have the project’s improvement recommendations been tied to its root cause analysis? 2.to. these.controls. a.discussed.execution.also.project’s.a.. Eventually.local..to.there.it.context. stakeholders. Did.It.in.that.work.to.process.the.the.improvements. analysis.to.to. plan.is.is.by..an.countermeasures.also.control.those. changes. of.point.time. to.owner.points.

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Accounts Payable . Resource Requirements 5. Financial Metrics 6.Inventory Financial Classifications A. Cash-Flow Benefits: 13. Net Benefits .Increase from Price B. Cost-Reduction Benefits 11. Revenue: . Compensating Metrics 9. Project Objective 3.Rework .2 1. Project Metrics 8. Operational Metrics 7.Scrap . Cost-benefit analysis.Direct Labor C. Summarized Benefits 4. Cost of Goods Sold: . Revenue Benefits 10. . Implementation Cost 14.Increase from Volume .Material . Cash-Flow Benefits 12. Other Cost Categories: . Problem Statement 2.Accounts Receivable .Warranty Project Charter Figure 7. Total Benefits D.228  ◾  Lean Six Sigma for the Office Project Alignment Building the Business Case 1.

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

if. eliminating. Frederick F.detractors.percent.percentage. risks.are..consider.various.asked.to.to. “The.the.reported.NPS. attributes.3 2.“extremely.are. NPS.to. Reichheld. team.7.is. romoters. range.project.NPS.the.rating.to.in.to.and. was. and.0.is.from. s . was.as..NPS. a.stakeholders.between.ranges.a.identified.experiences. ervice.than. reported.gain.project. entitled.10. an. responses. Frederick.barriers.as.issues.service..an.6. F.75. promoters.often.to.on.stakeholder.industries.was.more.to.and.into.by.of..likely.percentage.project’s.of.that.various.their.percentage.stakeholder. the. Reichheld.ratings.detractors.that.its.Ratings.A.unlikely.the.other.execution.this.NPS.for.or. benefits.ways. entitled “The One Number You Need to Grow. be.a.”.goal.final.. a..by.a.in. (5534). This. Grow. to.as.percent. as. by.is.scale.scale.to..decision.” December 2003.“extremely.correlates.the.method.summary.9.incremental. to. in.article.on.400.16.and.are. statistic.to. The. views. classified.determine.defined.to.support. are.8.230  ◾  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.usually.and. and.10. neutral. In.that. are.or.would. part. It.It. neutral.a.will.80.questions.of. not.product.the.In.0. December..and.others. Harvard Business Review. requires.subtracting.in. that. NPS.stakeholders. .NPS.better.by.or.0.have.a.recommend..project.is.key.”. of.question..is.than. of.survey.key.and.from.not.The. as. in.are.will.also.service.is.. A. calculated. one.The. without.their.approximately. project’s.of.modifications.to. that.correlated. using.analysis. A world-class NPS benchmark is in the range of 75% to 80% (Harvard Business Review).customers.team’s.10.attributes.same.that. P .NPS.summarize.of. 2003. considered.average..important. Article Number 5534.to.the.concept.correlates.specific.the.NPS.sales.to. You. Key stakeholder analysis.the.rating.that.0. One.key.a.types. Figure 7.to.recommend.The. consider. across. is.people.because.or.customer.Detractors...and.a.organizations.. Need.ratings..defined.product.with..a.important.key.a. recommend”.they.product..differing.to.recommend.world-class..analysis.between. article.calculated.10. scale.a. discussed. a. Number.are.

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

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

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

form.end.toward.emphasis.Chapter. Customer CTQs 2. COPQ 11.. implementation.because.in.to.. scheduled..according.. time. require.was..days. Project Plan 7.charter. activities. had.format. as.has.few. and.this..be.communication.the.useful.an.activities.work.chart.ensure.scheduling. event.a.duration.on.work.to.is.In.book.effective..team’s.or.in. scheduled.A.importance. follow-up.Gantt.the.discussion. carefully. of. event.of..discussed. Kaizen. schedule. Response Plan 21. New SOPs 23.time.be.project.on. are.checklist.in.management.is.very.a. be.goal.that.that. Define Problem 3.7.completed.1.context.goals.shown. “Should-be” Process 15.current.and.7. version.guide. activities.or. Potential Solutions 14. a.event. Kaizen.based.7..Improvement.schedule.just. Figure. time. activities.the.generic.effective.with.structured.an. Transfer Control 25.this.a. shown.7. to. igure.an.communication.important.this. but.the. Process Performance 19.Notice. planning.those.as. Perform.repeatedly. Mistake Proof 18. are..Building a Business Case for Change  ◾  235 Project Name: Deliverable Team: Complete (Y/N) Major Activity 1.in. a. that.. conducting.well. Root Cause Analysis 12.Kaizen. Scheduling process changes... Communication The.occur.of.associated.to.this. In. achieve. a.presented.Kaizen. High-Level Map 6. Standards 8.the.by.In.various.normally.all.to.executed.the.objectives.summary.In.showed.event. Follow-up Activities Activity 1 Activity 2 Activity 3 Activity 4 Activity 5 Activity 6 Person Accountable Day 1 Day 2 Day 3 Day 4 Day 5 Day 6 Day 7 Day 8 Day 9 Day 10 Figure 7.duration. longer. with.4.their. Maps 10.of.the.shown.4.7 6.these.events.of. key.discussions.activity.defined.a.and.. is.activities.. to.including. New Process Map 22. Data Collection 9.summarized.. in.event. during. Detailed Proc. is.are.that.managed.been.In.. team.that. Control Plan 20.scoped. Cost/Benefit Analysis 16.project.be.identified. improvements.how.their.scheduled.Figure. Vital Few Xs 13.of.throughout.activities. Standardize operations 24. occurring.sequence.are.completed. Validate Improvements 17.is. Stakeholder Analysis 5.the. F .sequenced... .short.. Team Charter 4.and.

its.methods.stakeholder. a.on.a.stakeholders.similar.tools.of.responsible. can.reward.complicated.process. case.straightforward.. Communication planning. that.competitive.key.interests.there.the.8.1.using.programs. every.messages.team..the.the.projects.format.necessary.communicated.that. to.the.numerous.ensures. team’s.an.each.e-mails.process. stakeholders. be.organization.of. to.listed.implementation.and.competing. to. sustain.set.the.transition.is.specific.7.will.change.there.chapter.general. stakeholders... improvement.It. key.systems.8 7.. used..manage. e-mails.given.simple.first.with.organization’s. have.change. communicate. should.and.local.priorities.associated.. with.important.methods.tools.this.and.that.been.project.key.calls. format.the.the. Integral.an.deployed.using.activities.routine..also.and.owner. well-defined.improvements.addition.is.discussed.of.to.person.also. proposed.It. organizational.supported.project.a. a.that.. of.. .organizations.necessary..content..important.that.recognition.an.person.based.key.As.are.be. be.improvements.the.is.messages.next.and.example.The.activity. should.and..time.improvement.controls..are.always.to.both..a.implementation.to..will.to.the. announce.designed.formats.probability.a.environment.than.modified. These.will.countermeasures. to. countermeasures.On.to..facilitate. time.methodology.pursuing.this. include...The.ensure. rather.who..across.is.correlated.back.7..hand.any.is. and.are.should.communication.resources.process.has.sustained.process.simple. over.be.world..be.which.on.a.process.and.in.the.should.important.by.elements.of.step.step.an.newsletters. is.communication.elements. Summary Changing.videoconferencing.In..the.process.be.own.be.because.in.selected.obtain.that.consistent.within.process.activities.priorities.The.and.analysis. for. increase.initiatives.change.and.other.The. countermeasure.. correct.be..organization.there..been.can.necessary.the.concept.for. used.communication. business.to.telephone.These.a.are.modern..for.example.their.These.apparent. the. other.several. the. these.individuals. activities.to.message.of.their.is.Figure.communicated.In..be.Table.at.that..stakeholder..impact.based.that.in.listed.several.changing.are. the.formats.are. key. to.a.its.e-mail.work.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.elements.group.As.should.In.important. set.structured.

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

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

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

and. target.controls. levels.shown.into.to.1 Key process improement Questions 1..be.discussion.the.Table.the.formats.types...control.a. Document system characteristics of key process input variables (KPIVs) and key process output variables (KPOVs) including their definition.process.and.organization.will. Describes who is responsible for what corrective action.plan. most. and measurement systems.discuss.2.applied.communicate. improvements. What process? 2.the.electronic.were.is.and.question.A.system’s.process.will.sustained. performance. the.bring.to..chapter.assigning.a.is. metric.questions.to. Control plan requirements The.to.will.will.and.is:.to.provides.and.and. Specifies reaction plans to out-of-control conditions.control.how.work.placed.time.how.(Xs).by..second.systems.local.other. in.related.back.will. monitor.that. plans.the.schedule.include. target performance level.Which.developing.may.appear.of.activities.quality.Kaizen.team’s. When will the countermeasures or improvements be made? 6.a.root. characteristics.many.the.chapter.to.A.review.In.by. major.an.these.tasks.to.in.to.operational.and.of.attributes.. 6. Specifies tolerances on key process input variables (KPIVs) and key process output variables (KPOVs).as.countermeasures. 5.2 Control plan requirements 1. methods.key. e . metric.over.controls. xecuted.In.their. 4. a.information. that. requirements.This..should. How will countermeasures or improvements be applied? 4. 2.the.8.quality. measurement..including.paper.into.process..are.be.of.the... and.are.in.plan.a.owner.control. process.This.whom?.plans.questions.incorporated.execute..important.work..controls.found. their.Ideally.they. Specifies controls on KPIVs and KPOVs.the.These.strategies.interpret.used. How will we know when they are successful? methods?.controlling.plan.we.Implementing Solutions  ◾  241 table 8.the.resources. Specifies measurements of KPIVs and KPOVs.this.documentation. necessary.this. . when.various.a.well.control.on.inputs. 3..basic.analysis.control..words.important.process. be. to.control.will.team.or.we. levels.answers. will..be.. reaction. Who is responsible? 5.others.improvement.In.that.causes.ensure. important.to.performance..the.document. table 8.discuss. Other.in.it.useful.control.as. What countermeasures or improvements? 3.be.

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

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

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

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

number of accidents per building. hours. Assumed Distribution Normal .e. P-charts are constructed using subgroups of equal or unequal size. hours. percentage defective invoices. etc. 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. Poisson Sample Size 4–6 observations per subgroup and 20–25 subgroups in the initial baseline sample. percentage days late. i. costs. Number of units failing a standard. etc.table 8. incident rates. np-charts are used in situations where subgroup sizes do not vary. costs. U-charts are used in situations where the size of the subgroup size varies. 50 or more observations per subgroup.. i. Convenient sampling unit that is constant from one sample to another. etc..e. etc. incident rates. Number of defects per sampling unit. Normal 25 to 125 observations in total sample with subgroup size=1.5 X-Bar and Range Charts Continuous Cycle time. number of errors per invoice.

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

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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.

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

8 Communicating the proposed changes to management.6 67.6 100.27 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 80.26. Percent .6 10 7.25.0 • 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. 5.2 100.8 82.5 88.0 Figure 8.8 7 5.0 94. 2.1 9 6.262  ◾  Lean Six Sigma for the Office Pareto Chart of Causes for High Inventory Investment e el d or de r e ul ch an Root Cause Analysis: Level 1.6 80.7 94.4 6 5.6 16 14. and 5.4 13 12. and 3 Figure 5.

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

2 20% 3.6 7.2 0.6 26..35 $1.8 1.8 3.McGraw-Hill.their.8 1.00 $10.1 18.maintain.8 1.enable.1 14.6 0.9 27.5 1.00 $8.0 2.4 131.4 5.monitor.6 0. Suggested reading Davis.48 $1.corrective.8 1.4 0.Bothe.8 2.7 1.0 3.5 1.0 3.08 $0.0 10.that.6 0.performance.3 11.9 2.1 37.R.8 2.a.74 $5.03 % T otal Figure 8.to.2 0.7 0.7 7..of.25 $3.50 $4.6 13.5 12.4 2.5 12.8 1.actions.94 $23.8 1.higher-level.0 6.8 5.6 7.1).5 3.00 $0.15 $0.0 18.was.3 18.66 $2.8 1.0 1.2 4..00 $12.appropriate.6 6.0 0.6 2.should.8 1.00 $6.27 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 1.00 $2.5 1.9 0.6 2.2 1.5 1.it.00 Total Cost by Process Step Total Cost ($) 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 $32.7 2.3 1.8 1.3 3.77 $4.0 3.60 $1.2 2.70 $8.0 30.mentioned.2 75.0 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 12.6 3.New.6 1.6 16.4 2.metric.5 $ 91.8 1.4 5. .8 1.the.25 $5.2 9.6 2.8 0.4 2.2 4.9 5.4 0.1 0.4 2.to. and.0 8.7 374.8 1.30 $1.0 0.40 $13.00 $4.0 14.1 1.2 7.4 $4.8 36 20% 3.4 1.3 17.7 0.7 5.96 25% Total Cost C omments T arget to E liminate 3 3 3 2 4 4 3 3 3 4 2 3 2 3 3 3 3 4 2 4 61 1.27 20% B 0 1 1 1 1 1 0 1 1 1 0 1 1 0 1 1 0 1 1 1 15 $23.5 1.6 7.9 1.4 1.6 13.8 1.8 10.8 1.10 Creating metric dashboards (similar to Figure 5.1 3.1 4.8 10% 1.4 4.7 0.3 0.00 15% C 1 0 1 0 1 1 1 0 1 1 1 0 0 1 0 1 1 1 1 1 14 $30.local.8 1.dashboards.7 10.work.5 1.8 4.0 2.9 1.2 2.owner.7 0.2 75.4 4.5 36.9 2.4 2.50 $5.40 $10.Measuring process capability.and.9 1.3 6.6 6.0 1.0 2.1 0.8 1..process.8 1.8 1.6 35% 5.0 3.team.8 5.9 19.8 1.05 $4.8 1.1 4.72 $27.0 4.2 0.9 1.5 1.3 6.4 99% 97% 95% 99% 97% 99% 98% 95% 93% 98% 99% 96% 97% 99% 94% 99% 97% 98% 92% 94% $27.55 $7.6 21..6 3.6 0.0 3.4 0.metrics.0 7.8 0.2 4.3 0.4 3.8 0.0 3.8 33.4 3.0 4.take.1997.5 0.6 100 % 15.Implementing Solutions  ◾  265 16.6 2.9 4.status.00 $20.60 1.4 13.2 20.8 4.95 $19.80 30% D 1 1 0 0 1 1 1 1 0 1 0 1 1 1 1 1 1 1 1 15 $24.9 0.9 0.2 1.0 7.0 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. discussion.8 1.70 $4.3 6.2 5% 0.York:.8 1.

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

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

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.

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

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

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

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

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

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

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

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

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Order processing. Customer Receives Order 8.25 Hours Maximum = . Invoice paid by customer. . Failure to protect order from the environment.1 Hours Typical Issues Incorrect quantity or product is ordered. Invoice Is Paid by Customer Operations 1.5 Hours 4. Customer Places an Order for Several Products 5.Appendix 1: Crystal Ball® Software  ◾  289 Accounting-Receivables Distribution 2. Distribution Normal Mean . Normal 24 Hours 12 Hours 2 Hours 8. Customer places order. Uniform Minimum = . Incorrect names.4). failure to discover missing or surplus items and related issues. Order Is Received in Distribution Center and Processed 3. arrive damaged or late. 6. Dev. Invoice creation. 5. Invoice Sent to Customer Order Is Closed Customer 1. Invoice is not created due to missing information or is created using inaccurate information. Order receipt. Normal 8 Hours 4 Hours 3.1 Accounts receiable simulation: distribution assumptions (similar to Figure 6. Invoice sent to customer. addresses item and amounts are entered into the system or incorrectly converted by the system. Order accuracy check prior to shipment. 2.5 Hours 7. Exponential . Lognormal 48 Hours 3 Hours Order is lost or potions of the order are lost. Order sent to customer. Accounting System Creates Invoice 7. Failure to discover missing. Normal 4 Hours Figure A1. Uniform Minimum = 8 Hours Maximum = 16 Hours Customer fails to properly receive an order resulting in receipt of damaged items. Order Is Shipped to Customer Accounting 6. . Order Checked for Accuracy Freight Carrier 4.5 Hours Std. Invoice sent to wrong customer or delivery not verified by supplier. surplus or damaged items prior to shipment.

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00 15.30 0.00 20. Normal (E11) Normal distribution with parameters: Mean Std.00 13.00 48.00 Mean Std.com –2.00 12.00 10.00 Probability Crystal Ball® software is a global business unit of Oracle® Corporation.00 60.00 54.80 –3.00 11.00 16.00 Normal distribution with parameters: Mean Std.00 0.00 12.00 50. Dev.60 0.50 0.00 4.00 45. Probability –10.40 0.00 6.00 2.00 Exponential distribution with parameters: Lognormal distribution with parameters: Uniform Probability 8.00 0.00 48. Lognormal (F10) 8.70 0.00 Mean Std.00 4.00 15.00 40.00 12. Dev.00 4.00 9.00 8.00 3.00 Exponential (E8) Probability 39. 24.00 Normal distribution with parameters: Mean Std. Dev.20 0. www. Probability 0.00 3.00 6.00 Uniform distribution with parameters: Minimum Maximum Normal (E12) 8.00 .2 Some Crystal Ball® software statistical distributions.00 30.00 10.00 14.00 18.00 42.Appendix 1: Crystal Ball® Software  ◾  291 Normal Exponential Probability Probability 0.00 Normal distribution with parameters: Figure A1.00 16.10 0. Dev.00 6.00 Rate 2.crystalball.50 10.00 57.00 10. Dev.00 4.00 2.00 8.00 9.00 0.00 51. 0.50 0.

less.hours. scenarios.an..approves.team.the.sending. value.can. actual.cycle. a.to. The. invoices.process. than.a.example.000.A.understanding. augmenting. standard.in..crystalball. of. cycle.com Figure A1.cycle.by.useful.cycle.05 0. Error 1.the.00 40. a. improvements.without.identifying.with.to.the.31 --13.07 3. This.00 Target=80.process. improvement. time. be.. time.of. then.this.a.subprocess.fact.00 100.business.3 Crystal Ball® software cycle time analysis.00 80.04 0..for. recommended.can.. largest.has. to.292  ◾  Lean Six Sigma for the Office Cycle Time 0. customers. within. process.simulation. process. workflow..associated. for.invoices.orders.07 0.06 Probability 0.53 0.00 98.an.of. cycle.average. building.team.simulation.management. is.~24. .the.metric. the. of Variability Minimum Maximum Range Width Mean Std.times.48.which.is. shown.actually. to.time.00 USL=120.have.an.a.missed.changing.process.would.could. various.1.improvement.workflow.00 70 60 50 40 30 20 10 0 Frequency Trials Mean Median Mode Standard Deviation Variance Skewness Kurtosis Coeff. Recall.56 98.is.00 LSL=40. time. methods. predicted.hours. subprocess.team.14 58. sending.be.Figure.04 0.compared.dynamic. analyze. reductions. in.of.As.has.reductions..in.Kaizen.Kaizen. stream.that. of.. that.A1. overall. the.associated.that.customers.02 0.with. cycle.Once.00 Hours 120.that.in. www.03 0.. patterns.average.case.01 0. was.customers. versus.91 139..45 80. analysis.49 182.time.43 Crystal Ball® software is a global business unit of Oracle® Corporation. using. advantage..00 60. contributor. hours. studied. ~12.and.15 0.and.shipping.a. deviation.

.crystalball. Process Order 4. Send Invoice 2. Receive Order 8. Receive Order 8.Appendix 1: Crystal Ball® Software  ◾  293 Percentage Time 7.1 4.com Figure A1. Place Order Distribution Normal Normal Lognormal Uniform Normal Exponential Normal Percentage 80.0 80. Pay Invoice 3.8 4. Check Order 1.4 Crystal Ball® software sensitiity analysis.0 40.0 60.1 1. Check Order 1. www.0 20.2 0.0 100. Ship Order 5. Pay Invoice 3. Send Invoice 2. Ship Order 5.0 2. Place Order 0. Process Order 4.8 7.0 Crystal Ball® software is a global business unit of Oracle® Corporation.0 Operation 7.

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five.53 .100 Audits..135.46..156 ..suite.43 Accounts..46 Brown-paper.8–9 Apathy...material.batches.improving.Industry.115 Accounting..awareness.obtaining.148 Bureaucracies.index A Accountability.239 Available.278 Business.105.time.288 Benchmarking..of.payable.and.102 Business....handling.improvement..104..85–86.(BOM)....(AIAG).benefits..122 .289 .232 Burger. criteria..activity.59.Action...process.organizational..plot. process.182 .169..utilization..52 Best.capacity... process.management..(BI)....objectives.269 Business. mapping. targets...282 Brand.39 Asset.22 Bell-shaped.296 Automation.278 Business.and.126..(BAM)..240 .280.87 Balance.capacity.188.233...278 Business.Buy.workflows.operations.202..189 Accounting.management...analysis. 105...146. bottleneck.14.240 .modeling..assumptions..212 Box.skill.134 .breakdowns.work.149 .....tasks.King. simulation:.191. methods.184..57 .check-in.workflows.processes.23 ...85–86 .. organizational.84–86 .(BPM)..62.systems.15.120..122 Bill..and.48 Business.147 ..and.monitoring.103.239 ..278 .conditions.(AHT).goals..exercise.4 Assessment..142 Bottleneck. Kaizen.activities.288 Activity.. transfer..material...204 ..149–150..characteristics.needs..event.170.57.changing...(BPMS)....and....belt..team... process.example. Kaizen.(BMA).52.120.105 Automotive. photocopiers.level.intelligence.workflows.274..21 Accounts.management...key..52 Basic. waiting.67 Alignment..147 .208 Black.202–203.28 Best-in-class..202 .receivable..16.Group.process.sheet..model.....and.135 .service.curve. standards. analyzing..235 Actual...147.and.metrics...278 Business.63 Behaviors..58 Average.29..123 Balance.123.checklist.and.23. 120.of.153.. 227......277 ...203.process.and.flow. simulation..94 Airport.management..distribution.46. strategic...38 321 .105 B Back-office. process.

process.Kaizen.migration.technology..219–238...233 .162 Compensating.workflows.235 ...38 .7 .for.stakeholders.activities. key..96 ..184.121 . organizational.and..and. conflicting.readiness.. (continuous).concepts.244.events..and. cost-benefit.system. Minitab®.235. infrastructure...272 Communication. interpretation..and.Lean.in........ organizational. Lean.and.and.. corporate. unnecessary. key. work.and. format.249 .. bureaucracy.231 .Lean.236 Comparison.28..and.teams.245 C Call..of..effective.software.268..workflow.231 .process.114 Cluster.studies.180. Kaizen.210–211 Communication..and.to.322  ◾  Index Business.distributed.and. avoiding.process. p-charts....282 . process.and.281 .208 Consensus-based.222 .analysis..engineering.improving.. strategy..and.of.36 Cause-and-effect....map.255.systems..Sigma.. data..case.236.priorities.20 .E).gross...296 .229–232 ..and.and.. opportunities.45 Cashflow.232 .and.295.271 Competitors.organizational. c-charts.225 ..tools.160.for..106 .cultures.75 ..value-adding.distributed. Lean.(BVA). creating.172..67 ..projects.of.and.41 Cash. activities.system.64–66.increased. communication..67...and.recognition. Crystal..233 Consultants.and.sampling.. key. control...or.variables....management.. control.250 ..237 Communication.30 . overview.245 .analysis.reasons.time..71 Change..flow.change.223–224 .219.for.for.48–49 Competency...binominally.range.and.operations . change.flow.team..key..management.variables..procedures..174 .64 Concurrent.and.analysis..expenditure.overview..Six.11.268 Case.226.219 Change..(VSM).. identifying.282 ..222 .232 Change.and.concepts.172–174.and..technology.margin.. Kaizen..support.222..eliminating..activities.(CE).32 .in...normally..in.(IT).initiative.. calculations. information...resistance.reducing.278 Channel.125 .. (pass/fail)...improvement.. reduce.softwear...164 . for.38 Complexity. 215..charts.. information....charts..236 ..(IT)..Six.247 . individual-moving. scheduling..67 .metrics.model.building.and.165 .219–222 .statistical.234 . process.226 .operations. reducing.48 Cash..246 .244–245 .236...245 .planning.and.74.of.products.analysis.(SMED).. value...team. 6.orders.20..improvement. process.175 C-charts..improvement.setup. readiness.46 Checklists..274 .152 Common.23.transition.(C.services.282 .. performance...factors.278 Continuous. reducing.alignment..26 ..centers.charts.161 China..212 ..28 .248 ..37.Ball®.stakeholder..prioritizing. prioritizing.rewards.business. international. processes.33 Control. for.77 .252 Change .workforce..61 Canceled. lack.collection.184 ....product.227–228 .&. Kaizen..223–224 Change..223. Kaizen.252 .69 ..diagrams.stream.barriers.a. cultural.91 .173 . project.projects..supplier. seven.247.to.164 ..Sigma.249 ..22..198 Capital. 65–66 .

38 Cycle.288 .information.deliveries.levels...testing. 288 Customer.286.. control.limits.sustainability.diagrams. requirements.31 .242–243.164 .times.new.tools.259 .and.software.293 .team.of.263.43.or..improving.demand.231.operational.satisfaction..procedures..of... Kaizen....analysis.165–166 ..259 . box.metrics.and...design.tools.228.279 .types. maintenance.of.296 .245 Control.. cycle. value. equipment. sensitivity. at.. satisfaction.166 Cost-benefit.289.281 ..questions..distributed.259 .(CTQ)..249 .Poisson.245 .times.operations..250–251..and.E)..of.solutions.250 . process.274.reporting.. elimination. histogram. new..avoidance.down...258 .of.190 Customer-facing.27 Critical-to-quality.282 .214.245.plot.for.282.11..(CTQ).259 .258.improvement..of. structures...241.mode.value.of...236–237..223. five-why...reporting. 200.219.and.. 258 ...259 ...285. Kaizen...stakeholder.and.cause—late.147 Critical-to-quality...87 d Data..251 .286 .solutions. for..root.analysis.22.233 .graph.194..and. specialized.64 Cost.and.and.263 .of.analysis.211.172–174 .120.exercise.work. long.programs.(huddles)..analysis. analysis.... information.245 .290 .. brown-paper.charts...and.up.194–196 ..other.40 . supplier.136. mistake.products. high.methods.and.layouts.177–181 ..71..methods.82.of.....169 ...37 Control.stream.240 .tools. control.and.&.data. 259 ..systems.55 Crystal.239.232 .242 .285.and.collection..events.financial. Lean.setting.259 .goods. r-charts.38 Customers.the.259 .reduction.227–228..analysis.audits.141–184. and. 289 Countermeasures. modification..149–150 .285–294 ..41.197.and..222 .(VSM).148.48.. cause-and-effect...222 .. control.time..288 . variation.of.analysis. modification.and.137 .46 Customer..inspection...sold.shadowing. business.migration..impact. reducing..proofing.flow..distributions.(COGS).analysis.38 Customer.62 ..245 . inventory.. 263–264 ..and.a... effectiveness..characteristics.64 Core.batches... errors. complaints.(FMEA).verbal. key..cause. failure.process.92. Lean.modified.and. training.process. process.292 ..5S. root.and..and. key.(C...and.of.73.226.services.290–292 .259 .process.impact..instructions..Ball®..and.199 .designs.. new. implementing. value..36.. job.patterns..and..calculating.241 Control. building.4th...map.of.278 .. types. purchase. implementing.stream..286. group.259 Core.258 . new.. statistical..plan.and.chart..255 . written. transfer.portions....258 . X-bar.visual..226. interviewing.organizational..87 .Index  ◾  323 .technology.46..map.147 .of.or.261 ..291 .(IT). implementation..188 ...tools..analysis.and.258 . changing....systems..77 . sensitivity..290 .287..(VSM)..analysis..175–176 .... cycle.245 .level..167 .meetings. requirements.229 Cost.. steps...250 Control.. 255 .253 ..of.288.analysis.variables..effects.

61 Define. classifying. scatter. time.195 Error.154 .project.151 .minimizing..responsibilities.operations. template..continuous. uniform.116..of..(EAI).champion.191 Expense... 240.269 Downtime..Six.rates.40. hierarchical.25.department.210 ...loading.(equipment..and.(DMAIC).of...measure..19 Enterprise.strategies..(FMEA).integration. common.200 Finance..organizational.improve....106.130 Fact-based.... patterns. templates.31 Deployment..295 .280 Deployment.rating.93 .....series.methods... example..diagram.11. variation.change.... operations.Sigma.95 .Manufacturing..for.... in.14..roles.234 Deployment.139 ..priority.facilitator.132–133 ...impact. process.graph...causes.map.105. (FMEA)..and.36 Exception.Six...11 Event...66 Design...analysis.209 Empowerment.143 Data.collection. methods.. Kaizen..130 Event..conditions... variation.295 Dell... spaghetti..(VSM).221... process..standardization.191 Failure.and..characterization..Sigma.288 .10–16...178.plot.... process.reports.5.89 Error.19. tools. bottom-up.in.of...reduction.of..288 ...services.(EVA). level.and...development.mode..31 Excel.324  ◾  Index ..104 Employee..added..prevention.service.66 Demand .31 .151.40 Deployment.for..67 .196 Employee.time.pricing. control.modes.264 . methods.(DFSS).low.training.in.and.people).13 Design..151–159 ..high.90 .280 Deployment.effects. 135 Drumbeat..simplification.14 Deployment.mapping—SIPOC.66..119 Financial.163 . level..37 e Economic..121.222 English....reducing.46 Design.failure.131–135 .. exponential.methods...258 Failure.leaders...89.for.16..and.170–171 . methods..effects.288 Diversity.15.154 ..12 ..and...mode..87..66 Design..planner.and..258 .296 Defects.execution.200 Finance.117.258 Failure.(RPN)..demand.137..55.errors.52..and.296 .67.12 . value.36 F Facilitators.stream.170 . risk.of ..257 .language.points.. prioritizing..94 .255–257.158 .290 .89.12.and..104.value. methodology..98...analysis..255.tools.chart.methods.256 Failure...of..12.and.(DFM).events.analysis.15 Everyday.types.. aligned.data.269 Distributions.222 .115 Finance.160–162 .rate.facilitation.(DFSS).. purchasing..reports. normal..94–95..percentages..analysis. standardized..process.options.123 Equipment .222 ..278 Entitlement..90 ..12. targets.9 E-mail. spreadsheets.or.288 .and.. Pareto.229..analyze.66 Design. 67 Design. top-down..168 .product.turnover.198...application.

a..53 Improvement.reports.prioritizing.statements.233 ..silos”..and..209 .89.metrics.and. technological.261.quality.. supplier. organizational..82 .service....32 Improvement. customer. process.statements—profit-and-loss...and...53 Global.212 .. implementation.for.flow.167–168..statements—balance.261–262 “Functional....31.risks..operational.233 .recognition..22..209 ..breaking.workflows..metrics. process..risks.143.115 .of...39 High.chains.236 .. 41–42 Goodness-of-fit.impact.230 High.examples.165–166.process..opportunities.43.32 Global.operational.(sorting.systems....belt.standardizing.233 .278 .improvement..factors.elimination.25 ..shining.and.174 Improvement.48. through...32 Information.224 ...264 .. process.reporting.3–110.show.activities.. skew..risks.breakdowns.219–276 .and.46.287 Graphics. processes.233 .systems.setting. building.process.(HR).191 .29...behaviors.test.168 Human. statements...167..defect.190 g Gantt.32.and.38–39.80–81..change.23 . reward. change..business.Index  ◾  325 Financial.....165 Follow-up. sorting..in.activities.200–201.risks.46 Financial.193 Green.225.(5S).....201...to..methodologies.8.Kaizen.296 Generic.172.(I-MR.analysis.forecasting.outsourcing.150 .233 Implementing.range..risks.objectives..follow-up.282 Incentives. 145.122.resources..methods..23 . Kaizen. cultural..219–238 .supply. identifying.53 Financial..events.232.and..209 Histogram.map.55.team.and.assessments.sheet..36 Financial.in.282 .285 .workflows..teams.19 Goals.behaviors.166.253 Information....and.. 184.235. 258.82 Five-why.184...negative.teams. 247..... process. identifying.recommendations.system....projects..road.workflow. worksheet.Business.expert.19 Hiring.financial.charts.90 ..positive.167–168.173.14 h Harvard.234 .solutions).167 . identifying.activities.275 Global.208.263 Improvement..195. changing.team.level....267–276 Improvement...233 .breakdowns..risks.and.54 Generic.208–209.event.235.down......114 Individual-moving..analyzing..81. steps.improvement..214 Financial. process.high-level.process.....280 Financial.. regulatory..financial..projects.234 ...24 Financial...125 .change..282 ..66 Implementation.89 Hindi. self-discipline.209 .new...detection. (for....113. Kaizen. project..charts).221 India... alignment.and.solutions..and.278 .48 Financial. scheduling.233 ..charts.improvement.272 i Immediate....using. economic.127.. standardization.of..137..202 Five-S. reinforcing.language.case.and. sustaining).and..57..Review.improvement.202.in.209.implementing..80 ..of. order.22 .

the.flow..9001.77. reduce.121 .seven.183 Inventory. change.9000.. reduction..191 ..process....40.and.233. total.event.systems.maintenance.operations.. stable.and.38 .165.137 ..4.. third. 76–98 .139–140.mistake-proofing..90–91 .of.method...158 Job...time..tools..78–79 .methods.material.176 Just. link..and.utilization.37 . root.operational..182 .204 . problem. first. analysis.Institute.179 ..247....178 ..data.37 Invoice.203 Invoicing.projects.data.77 .. obsolete..setup...137 .in.level...and.of.125 .92–93 Just-in-time. analyze.stability. control.specifications.31 ...235 ...reasons.103. high.124..and..collection.technology.76 K Kaizen.candidates.for.preventive..19 Job. ISO.60 Inventory...189 .237..level. 277–279 .sizes.ration. efficiency.and..major.125.Internet..prescreening.240 Internet..180 .251 J Japan.develop. activities.181 ..orders.... analysis.high .types.quality.159.124.84–86 .time.175–176..of. process..24.30.273 ...standardized.135.investment..198 .turns.payment.and..time.182 Inventory..to.234.136 ..111–218.80. data...227 .and.135. implementing.cycle.84 .268 Initiatives..105 .methods.(SMED).cause. mistake..implementing.changes.. information.87–88 .for.53 .proofing.239 .and.. process...external. prioritizing. reduce.investment.82–83 .level..105..and.collection.process..15. canceled..94–95 .of. waste..and..letter. standardization.278–281 .configurations..vs.service.80–81 ..92 International.125 Japanese.and..239 .269 Inventory.work...requirements.shadowing. work..of.data. major..60 .operations. philosophy.157 .142 .improvement.32 .a..and. as.222.reduction. improvements..188 Internal..9004.. defining.59 .times.92 Job.59.change.198 .. supplier....60.177 Inventory..(JIT)..239 ..improvement.196 .. balanced.66 Interorganizational. operational.language.times.flow.136 ..of.22.prioritized. 120..on.97.systems.76 .shadowing. waste. excess...89 . balance.272 Internal.. strategies.. 275. conducting..management.networks.lot.(IT).175 ..material...134..128 ...177–181.platforms.131.and... communication.19–20...(Ys).195 . systems.data.and. continuous.improving.demand.. ISO.137 .in. service... level.24.4–7 .(JIT).and..business..work..eliminate....waste. reorganize.77 .workflows.of.tasks... deployment.177 ..analyzing.27 Internal.112.96–98 .analysis..5S.4–5.105 Infrastructure... asset..and.physical.. apply.94. ISO. communication.case. building.26 . checklist. 5S. second.designs.116 .methods.326  ◾  Index Information..operational. apply. worksheet.239 .demand..(ISO).analysis.Standards.analysis...7 Kaizen.improvement..14..cycle.

32.222 .. .and.. ..128.and.of.22.and...116 rapid.of.277 .control.221 consultation.and.and.and.122 . prioritized.of. .and... project. ..137 measurement.methodologies. project.characterization.. 121.responsibilities. .effects.187 identifying.causes.29. resistance.(NPS).. .customer....189.projects. .event. opportunities.... follow-up..improvement... Kaizen.220 analysis...and.chains.prioritizing.tools.workflows.organizational..risks.131.... alignment. 269 process.for.229.with. ...and. .and.development.267–268 .supply.global.stream.233 .local..analysis......225 .team.alignment.5 Kaizen.15 .. operational.195 data.and. process. 269–270 .and...organizational.118.. . process..score..54.stakeholder. .and.25.and. .116 .117..36.promoter.229 process.182.. worksheet.analysis.127.and..workflows.26.118.for.36.with. evaluating.readiness..and.223.(FMEA). 207–209 project.and...220..129 ... communication.process...136 analysis. alignment.123.234 implementing.goals.22. preparation.231 .. .126..improvement...change...Index  ◾  327 data.the..235.and...transition.184 decision-making. . .personnel.operations.129–130. strategies.256 general.. conditions.155 process.116.of.train..129 .collection.128 . objectives.and. 139 key. ..analysis...root.team.232 evaluation.analysis.119–123..240 . .measurement.180 empowerment..124 .data.. ..138 .mode.205. activities.258 failure. supplies.(VOC)..components.. .product..Six.196–198 scheduling.and.. deployment.and.members. .. .127 root..and.117.111–112.. objectives. .. . ..130 .12. 131–135.. international..of.and.system.workflow. .55 . sponsors..three. .alignment. obtaining.Sigma.277 .maps.experts.for.8. organize. new.analysis.research.263 ...in.and.127 roles..and.equipment. obtaining..improvements.team..213 ..for. goals.workflows.organizational.collection.114 . .components.254 net. support.and.and.. improvement.280 project..259 roles.126..conferencing.. project. and.solutions...and..117..200.151..process.process. strategic.events.with.across.for. planning..with.163 Kaizen.and.231 Lean...personnel.questions.charters.....215 process.282 .. rapid.and. .marketing. .. infrastructure.118 ..cause.177.129 failure...134–135.and. kickoff..improvement.of. value. . . 234 ...solutions.and..50 . .229.224 communication.233 .risks.of.221. voice.breakdowns. facilities.185 change.. ...leader.chains.224 ..change. ..275 .improvement. strategic.global..and.charters.goals.financial. implementing.of.training..and.119–120.identification.126 .and.and.examples. .of. . ..and.114 ..22 ..114 .teams.and.of.202–203.and. .222 transferring.113–124...42.26.charters..190.212 implementation.139.supply.activities.122 .30 Lean.causes.activities.audio.233 six. facilitating.of.112 recommendations.best-in-class.layouts.. video..responsibilities.153.and. .128 .across.activities.115. and..255 support.analysis.. .160.steps. 141.23. .26 Lean..of.138 facilitation. .277 ..deployment....212 Kaizen.286 control.. schedule..team.examples.274 .process.118 training.of..259 .objectives.191 improvement.277 .124 .objectives. project.agenda..Kaizen..115–116.115 ..63 Kaizen.

improvements.time.269..and..229–232.24 ..Lean.295 .268.39–40 Lean.137.70.networks...5.of.financial. organizational.the. prioritizing.Six.237..200 .customer.Design.22–25.71.137 .191.98.deliveries.. tools. process...and.Dr.initiatives.and.and.event..46 . supplier.. voice..P. satisfaction. rapid.complexity.267.62 Kano.231 ..90 Lean.202 .281 .31 ..143 .projects.metrics.and..tools.language.122 .metrics.223. initiatives. procurement. projects...4 .of...205 .138 Lean.2:.concepts.for.230.. implementing.269 Lean..and.136 .John..discussing.14 Lean...7.events..19 Kotter.metrics.90..and.of...30.team..workflows.136 . major.of.28 Kanban.methods.49 Key. process..(listed). data..production.242 Key. cards..of. reducing..conducting...solutions.57 ..66 .26...220 .initiatives.Kaizen.180...viewpoints.definitions.(HR).46 .63..177 .process.282 Lean.Sigma..46 ...conduct.philosophy. deployment.240 . financial.and.44.90 ..224 . process.plan.184 Lead..processes....42.32 . integrated...the.of.195..the...274 Lean.4 .focus... Step.. six..45 Lean..workflow...61 Lean....improvement.input.. Lean. metrics. sales.. operational...31.and.14 Lean.19 Late. changing..55 .reasons.and.24.275 ..and.Six..process..and.280 .242 Key..of..align...(DFSS)..198 . operational.101 Kano.of..masters..102 .output. activities.level..268 Kobayashi........opportunities.and.78 Korea.125. operational.112 ..Sigma.258 .. culture.cultural.. basic.46–49.common. human..needs. analysis.of.and.and.236 ..46 .(SMED)..level. behaviors.23 . common.of.268.system.69.time.change.36 .approach.strategies.. process.296 .collection.105 Lean Six Sigma..supply..expert.191 .32..(KPOVs)..222.. performance.129 .Kotter.analysis..analysis.25 Lean.236 .variables.impact.. process.setup.event. control. diverse.objectives. performance.68.event.metric.82... process.Six. initiatives.John..128...1:.67 .metrics. 270 ...and.77.5 Lean.29 .needs..Kaizen.evaluating.needs....8. concepts.240 ....274...of..46 ..and..analysis...96... examples.23 . inventory.across.62 Key.64 .differences.operations.P. concepts.improvement.57 .assessment. product.Sigma.improvement. Step.62 .deployment.needs.23 l Language.workflow. tools.11 Lean. impact.19. deployment.(VOC).methods. Step.31 .process.5S. Kaizen..for.design...328  ◾  Index Kaizen. reduce.160.32. methodologies.222 ..improvement.280 Lean...61..135 Leading Change by.189.44.of.characteristics.and.(KPIVs).chains....methods.stakeholders.. 18 ..changes. communication..62 ..233.change. excitement.resources.184 .and.global.10 ..processes.variables.55 ....3:.100.and.24 .46 ..and.41 Lean...of.125 Korean.45. marketing..231 ....46 ..Implement..

create.76–98 ..flow.....98 m Maintenance.operations. supplier.281 Lean.31 .and.assessment.cost.process...83 Local.46 .. continuous.135 Major. supply.metrics.workflows..complexity. alignment..and..97 .of.update.work..277 .58 .event..24..16.business. teams.robust..of.control.metrics..elements.and.21 Lean.and..100–101 .Time.37 Link.chain.102 . projects.team.and.67–68 .. technology.Teams.of.. implement.supply. eliminate.38 ..identification.61.26–27 Lean.61–63 Lean.operational.82–83.277–278 .. plan.in.system.and..TIme.event.designs. understand.279 . reduce. systems.78.57–110...time..complexity.64–66 ..Sigma.methods.68 Lean.98–99 .38 .. global..schedule.Kanban.the. 63.technologies.training.initiative.Index  ◾  329 .metrics.and.system.. elements. implement.measurements. visual.planning. and). develop.of.sizes.of.-.update.environment..37..and.implementing.(leadership..(VSM).Kaizen.32. 102–104 ..Stream.74–75 .systems.Six. rapid.of.Six.22. strategic.Basics.elements.197 . executive.chains.training.analysis.teams. eliminate..39 .tasks. four...46 .process.to.117 .and. communication.Sigma.36 .Lean.15 .value-adding..pull...161 .and. continuously.100 Lean.. deploy. high. Lean. voice...process.and.64 .and.and.complexity.Value....and..and..69 .support.steps.of.32 ..112.reducing..yields.unnecessary..23 .85...31 .product.information.. Lean.138 .unnecessary.. value.and.111 ..operations..(JIT).50 .in.process.the.visual.teams. financial..(VA).a.33 ..14.. low.and....46 . deployment..of.24. project. team.VOC..measurements.97 ..logs..Six.46 ..Sigma. implement.for.36–38 Lean.29 .41 .controls. strategies.process.systems..conducting.142.105. simplification..metrics.....Sigma.key. manufacturing.Sigma. service....Six.work.. planning.the.26–32 .29 .office.systems. in.30 .system.and..key.process.cycle..methods. reduce.29 .map.improvement..21.27 .tools.3–4.96–98.106–110 .operations..stream. problem-solving. flow.the.tools.internal.Sigma. compensating.38 ..methods. business.12.event.Just..change.high-level..29 . performance. continually.69 .Maps.and.improvement..process.of.46 .. low...100 .of.of.supplier.to... Lean. 24 .30 .14 Maintenance.32 ... project....and.deployment.Six.scheduling.(VSMs).38 .product.case.system..of. analysis.variation. Kaizen.14.data. management.networks.. Customer).(middle.change.16 .35 Leanness.and.53. implementation.and..(Voice.67–68.55 ..212 ..technologies. benefits.274 Lot. performance.champion.elements... building.and.of. project.charters..39.222 .metrics.teams.94 Lean.29...pull.26 ..32 .143 Lean.. root. low..Six.. high..Teams.41.systems. reducing.and.content.and.and.55.279 Lean.Six.workshops). mixed-model.(JIT).Six.Just. project.alignment..networks.Kaizen.26.and.materials.improvement.selection.cause.(VOC).of.28 .220 .70–73 .33 ..methods.29 Lean.teams. tools..in...32 .process.30.an.Sigma.39 . create. ten. ten.operational.16 .38 .workshops. problem-solving..demand.capacity. evaluating.the..and.41 .customer.29 .22 ..Sigma.

and.74–75. repeatability. linearity.92.penetration.operations....and. analyzing.98.characterization.295 Minitab®..Sigma.increasing..testing..Sigma. balancing..error..and.57.criteria.system.. 253.shadowing.and.(VOC).and.product.295–297. control..330  ◾  Index Major.chain. Kaizen..263.research.Six. processes.chart. Kaizen.201 Mistake.components..205–207.reinforcing.and..196 Nonrandom.system. common..project....of.Baldridge. Kaizen.229 .variation.. control. reduce.296 .255 .control..behaviors.102 Measurement. error.191.57.and... Lean.event.Sigma.. design.106 .230.268 ..and.data.254 .28 ..the.296 .21 .156–157 ..Quality...11 .Six...295 .255 .analysis. operational.46 .research.253 Non-value-adding.(Appendix.(VSM).64.247..153–154.207 .of....168 .254 .189–190 ..205 Materials.example.84..191...285 ....dashboards.84–85 ..222 Mistake-proofing.. stability.189 n Net.. market.and.and..(NVA). Pareto.66 .. method.scheduling. reproducibility...280 . Lean..205 .37 .Inc.of.research.statistical..190 Miscommunication.a..products . 281 McDonald’s.analysis.stakeholder.Six..and.38...162...120 .team.46 Market.Quality.. process..flow.supply.procedures..53 Malcolm.....142.7 .workflows. 295–298 Misalignment.295 .features..254.207.Quality..37.254 .2... Kaizen.flow.Companion.264..chart.195. simplification. resolution.data.204 Marketing. process....187 .and. policies.level.. Companion..23.29–30 ..7.61 Mitigation.map.. Lean.and.87–88 .296 .214 New..255 .. voice.. Companion. prioritizing.cycle.material..Baldridge..inventories... Pareto.stream.improvement....295..score.177 .. methods.analysts.and.times.. standardization.89.87 . key. process. financial.chart..softwear.160 ..process.award.language. operational.135..toolsets.issues...and.254 Metric. pull.plans.patterns.91 . value.254.254.137 .. 176–177 . process. accuracy.and..297 Minitab®.231 Mixed-model.and.258 .. Lean.249 ..85 Mathematical.mapping...alignment.and.by.240 Malcolm.296 Minitab®..32 . strategy.185 Mandarin.teams..278 ..proofing. buffer..and.232 .Minitab.charts.complexity.changes.customer.reduction.20.higher.statistical.promoter..and. project..254 . 198..99.....265 ......Software.of.29 Minitab.codes.66 .Statistical.team..66 . balance....36 .278 .schedule.206.240 Management.297 .softwear.263 Metrics ..283 .45 .strategies..2).204–205.66..173.modeling.tools.products.. inventory. creating.and.improvements.296 Minitab®.230 New..systems.. process..scheduling..19 Market.(NPS). functional..36 Metrics.reporting.examples...66.and.29.127.265...of.... define.254 Measurement. eliminating..example.and.270 New.using.system.job..44.102 .methods...system.analysis.66 Mistakes. process.. creating.and.of. development.129 .

information..269 Operational.common.195 Outliers.Martin. downtime..processes.274.and.services.new.270 .. value..of..55 Organizational.. people). scrap. value. critical.stability...or.267 .55 Operational. simplifying.safety.improvement.63 . Kaizen..measurements.goals.55 .25. time.60 Office.the.58 o Obsolescence.145..mistakes. effective. rapid.11..40 Operational.metrics..61 . dysfunctional...jobs.37 Operations .. percentage.283 Organizational.....task.145 Operational.(VSM).and.232 ...assessments.space. critical-to-delivery.134 Operational..defects. standardizing.182. measurement.Corporaton... limited.69 ..the..60 .time.themes.of...office..(VSM).268.184.61 Np-charts.and.(VOC).breakdowns. transportation.by..gaps...253.differences...cycle.Index  ◾  331 .objectives.themes.operation.(CTD)..work. critical-to-cost.168 P-charts.147 ..map....exercise..113 ..184.expenses. repetition.workflows.272 Organizational.themes.responsibilities.change.19.content.69 . allocated.value-adding..supply.stream. identifying..products.31 Operations.43 .63 .. voice. about.structures..221 Organizational.268 ...19.39 .per.workflow.from....9 Organizations.for...143.in .of.169.. Lean.or.cost. James.chart.168.customer. prioritizing.team.41 Operational.W..barriers.70 .times.. analysis.performance.32 Office.44 Operational..69 .61 Office..282 .data.environments.to. inventory.149–150 .70 ..(CTS). Lean.productivity.analysis..57.investment..chains..collecting.and.288 Outsourcing.31.financial.environment.. implementing.. setup...188 Outsourcing.metrics .research..168 ..269 .and..(VA)..(equipment.128 Operational.percentages..24.69 . rework.supply.180.29 Performance. brown-paper...and.systems.55 Performance.269.of.of.286 Organizational.lines.within.(CTC).224 Operational Excellence—Translating Customer Value through Global Supply Chains..behaviors.throughput.methods.18.64 Overproduction.269. sending.event. cultural.stream. mistake.......discussing.69 .38–39 . mathematical...119 Operational...production.to.percentages.environments..of.reports.. Kaizen.31 ..proofing.and.82 Pareto..63 .information.of.Excellence.. 69 Performance.63 .training.53.71.. production. global.39.247 Organizational.and. critical-to-quality.percentages.floor.event.26 Operating.map..cultures..69 ..system.120 Operational.. process. roles..254 .40 .measurements..or.84 Oracle®....projects..required..change . reporting...and..change..(OR). creating..269 p Packaging.. minute).63 .incorrect..71 ..247 Performance.themes.277 . Kaizen.and.154 .(units.29 . reinforcing.rate.277 .233.(CTQ).11.activities.chain.61 ....232 Organizational. 70 ..

.and.224 ..Excellence.control. control..243 ....10 ..mapping—SIPOC..264 Process.137 .227 ..event.distribution.failure.procedures.questions.163 Process.systems....prioritizing.findings. and. examples.(floor..distribution.119 Process.to.44. elimination..controls.258 PowerPoint.271 .effect. implementation.support.60 .241 Process..253 Potential.developing.(SPC)..standardization.change.control.cause. overproduction.and.32 ...of. statistical.224 Process...222 ..training.. root...186.optimizing.worksheet.290 Process .improvement. mistake..study.240... 199–211 .36 Poisson.121...332  ◾  Index Physical. opportunities.worksheet..of.change...and.190.137 .effectiveness.57 . variable....and.. failure.supply.area.workflow.... audit.... implementing.53.281 Process.213 ..141 ...tool.243 Process.153. lack.163...194.analysis. work.185.240. root.examples.57 ...analysis.required.185–193.234.audit...196...analysis.updating.148. analytic.operations.of. scheduling..185–193 .136 Probability.waste ..197 ..223.79 Pilot. key. strategies.. common. collecting.22.of.135 Process.workflows.inspection.analysis.methods..operations.243 .22 Process...256 .239.owner.analysis.274 Process..of.231 .reducing.inventory.196 Process.44 Process.149.122 Process.global.. Lean.characteristics. floor....(FMEA)..and...levels.improvement......processes.mode.242 Process.168.data.240 Process. organizational.documentation.60.and....and.outputs. obtaining. training..243 ..223 .work.141.261 Pricing..32.breakdowns.242..10 Process....147.281 Process.245 Process.. identifying.effects..185...202.process..225.236.152.119 .151–159 Process. continual.240 .to.analysis..237 .layouts.269–273 .104 Process.improvement. full-time. poor.82 Process.activities. lack...demand.for.barriers.. 233. reducing. training.288..200 Process. organizational.236 .196–198 Process.. impact.78–79....295 Present.222 .160–162 Process.and. poor..102.243 .241 .57 Process.57 .layouts.teams. part-time. excess.tasks..design.155 Process..of....complexity. 5S...eliminating.levels.conflicting..188–189.using...243 . employee.28 Process. Kaizen.Lean.. organizational...technologies.7 Process..strategies.57 .variation..242 ...organization.configurations.analysis.153 Process. 195–218. office.and.of.. methodologies.243 .cause.information.common.proofing.122 ..barriers.improvements.38 Prioritized.222 ...151... reorganizing.analysis..process.experts .to..workflows..242 . changing.226.30.30 Process..237 Process.235 Process. organizational..240 .characterization. implementing.mapping..lines.82 ..and.process.scheduling. cost-benefit.teams.and.procedures.changes.287..243 .sustainability.78 .283 .simplifications. simple.and.inputs..process..procedures).methods....191. 194–196 .189 .212 . measuring..approach.279 .standardization. common..changes.tools..263 .control.tools.57 .improvement...of.process.189...training.264 .247..on.46 Priorities.audits.242...7.walkthrough. across...

product..material.. selecting.of.capacity...goals.market. .32 .Kaizen.chain.of.and.115 Product..rationalization.the.and.. balance.50 ..and.... transfer.43 .60 Process.and.142 .service.defects.map.down.220. value.assessment.benefits.stream.systems...60 Procurement.and... reduce.model. analysis.mistake.and.process. operational.43 .233 .team.235 .281 Processing..208–209 ...268 Project.200.marketing.chain.models.workflows.50.. breaking. Lean.management..classics. auditing. project.290 ..202–203 .and. process..identification.42 ...200–201 .and..115 Product. new. Kaizen.24 .84 .proofing..identification...waste...characterization. standardization.61 seven..processes. breaking. waiting..37. process.153 .plan. changing. project..296 . improving.222 .129 .36 .mistake.and. control.and.or....8. new. quantification.288 .14.57 Process.down.control..197. project.(P/L).research..and.Index  ◾  333 .and.20 .(VSM)..information..for.measurements.50.characterization.60 ..example.of. process.137 .charters .assessment...forecasting.processing.analysis.process.77 Productivity . three-dimensional..36.36 .50 ..(VSM).data.design....57 ..charts. common.. Lean.. supplier.27 .and..and.receivable..200 Processes .. waste.191 .at. office.high-level. Lean.. ..21 .flow.operations..development.. waiting.changes. machines.setup.performance.of.18–21 Processes.examples.product...and.. new..43 ..systems.45. collect. example...113 .identification.52 . accounts.144 Process.11..of.and.117 .59 Profit-and-loss...119 .57 unnecessary.151..9 .champions. prioritizing..224 .204–205 . Minitab®.Kaizen.19.. formal.and..identification.business..135 . unnecessary. example.workflow.forecasting.and.map.205–207 . mistake.149 . control.41–42 ...or.(SMED)..of.203 .51.287 ..150 Product...42 .supply..59 .... performance..time.57.employees.52 Project. metrics.product. accounts.....or.process.30 ..72. Excel-based.supply. manufacturing..analysis.events. cost-benefit. operations..of.119 .90 . communication.55. layouts. outsourcing.188.statement.55 .119 . goals. brown-paper.softwear.57..227 . Lean. simplifying..190 Production.tools.yields.50 .available..41.by.and. prioritizing.of. preparation. financial...279.55 .190 .complexity.workflows.30 .technologies..proofing.40 .of.and.common.. financial.69 .145 Project..statistical..process.work. Lean...transport.38 .and.teams.173 .redesign.261 Project.and.116 .objectives.deployment. value.motion.47 Project.227.153 .and...199–211 .projects.24..194 Project.40 ....people.research. financial.goals.by.24 .metrics.222 Project.alignment.exercise...stream.18 Product.every.58 ..21 ..289 . financial. simulation.operation.and.53 . objectives... quantifiable.and.219.32 .and.142 . outsourced...201 .analysis.environments..154 .materials.receivable. product. Lean.high-level... information. hiring. analyzing..solutions...proofing ..57.metrics.analysis. pull..forms.controls..15.35–56... implementing.events.

....a. 43–44 .37.nonfinancial.46–49 Lean.analysis.activities.methodology.43–44.151 Range....105.275 Rebates.80 Reduce.constraints.presentations.212.227 Proposed. assigning.charts.52. allocation..in.50 project.satisfaction.teams.scheduling.identification—process..2. Kanban.227 .systems.12 Return.employer..improvement.on.definitions.financial.leaders..28 Recommendations...demand.. implement.PowerPoint.267–268 ..Lean.48 Project.and. Toyota...cards.eliminating. ..298 Quality.benefits.. increased. 45 Project.55 .Roadmap.sampling. cost.219 Project. generic.39–40 key.example..Companion.satisfaction.28 .analysis.and.processing.161 Push.and.Frederick.66.global. ...worksheets..of...cashflow.116 Project.274.20 Resistance.289 ..of.251 Rapid. increased.supply. stable.plan.supply.. expense...reading..scheduling.225 Project.264. Kanban.or.and.227 Projects.reduction.technology... 31 .of .32 ..new.risk.metric. ..of.customer.297 Quality...(IT).100.plan.daily. resistance..227 ..160.teams.. management.using..projects. important. implementing..31–32..274 ...identification—process.230 Red-flag..262 Pull..239.269 Projects....296 Project. typical..systems.Lean.and..manufacturing. codes.. SMED.methods.297 Quality.setup.267–276 .of . ..259.product.to.organizational.goods.225 ..dies.195 Regulatory..of...50.across.56 .12 Project. ..time...prioritization.sold.and..of. suggested.35–56 prioritizing.external..Companion’s.and.189 r Random.213 .production.. short-term..103 .89. others.(SMED). and... .102 Q Quality.230 Reinforcing..increases.system.demand.. increased. templates...avoidance.232 Resources..87 Red-tagging.90 Redundancies.100 Pull.behaviors...91 .154 ..service..55.(WIP)..282 .forms. summary. minimize. information.14.15 .(ROI).questions...52 Project.chain...and..240 Quantification.project.39 Pull.7 Reichheld.communicating..process.259–260.....controls. Kaizen. process..metrics..investment.Companion.customer.35 Project.234 .solutions.36–38 overview.events..team.4...102 . revenue..227 .(SMED)..changes..100–101 .charter.22.227 .100. single...improvement.to.changes.. cost.proposed. 269–273 Relocation.100 .267–268 ..chains. overview.F.260 Quality.assessment. increased...45 Project. change.51–54 project.212 Projects ..system.transition.51. eliminating.227 .conditions.227 ...15.. .. Kaizen.117 .and.to.identification.control.40 Quick-response.inventory..32 ..work-in-process...90–91 . prioritizing.analysis.334  ◾  Index conducting.change.benefits.40 Project.control..and..satisfaction.39.systems.assessment.exchange..minute.60.supplier.(COGS).visual.projects..examples..

inventory.workflows.reduction.115 .activities. level... standards.11..analyze.223 .methods..and..and.processes.287..36 Reward.process.197 .business.(S&OP).(RPN). level. 90..143 ..knowledge.environments.processes.225 .change.91 Six...113 .121 Service.40 . cause-and-effect.240 .2.minimizing. level.286 .231 Rework...219.changes.rework..planning.exchange.272 .(SMED). creating.1.priority.and. process. 222. Accounting.200 Risk...167 .supply.285..Financial..across.opportunities..and.Board.and..and.change..236.. metric.117 Root.261 ..change.world.. process. changing.116 .systems....and..141.287 Simulation.and.and.. building.286.(SMED).strategies. control.285 .cause.Sigma . 270 ..rating. opportunities..160 .Companion.and.a.195 ...improvement. reinforcing. identifying. loops.150.increases..model..258 Road.and.77.202 .Index  ◾  335 Revenue.. histograms.115.dashboards.chains.analysis.8.professionals. percentages.30 .164 .25.286.and.288 .23 . activities...and.readiness.assessment.a.135 .96 Setup.industries.137 . process. key. process.team..global. change. change. example:.. accounts.collection.64. data..and.setup.data..analysis ..80 Simplification.analysis.minute.290 .and.systems.192 .196 Service..200 Senior..events.stakeholder..process.202 Scatter.272 Service.119. Kaizen.67 Service..90 .223 .of.80 Sharing..projects.171... Kaizen.and.and.separation...Lean..196–198.142. 180 .breakdowns.operations.and...chains...across..282 Scrap..receivable.across.Services.and. accounts. organizational.184.estimating.274.. collect.222.time.recognition.287.for.288 . 272 .analysis.195 . operational.227 ....E).134 Scrap.and.221 .workflow..management . workflows. data.232 .297 Role.analysis.. implementing.279 .233 .3.237 .... example.percentages.263 .204 Sales..analysis.(FMEA)...26 ..269 Simplification...286.of.162.19.and.focus...&.effects.receivable....of.... Kaizen. improvement..136 .behaviors. reward.tools..31 Sarbanes–Oxley. failure.188 .solutions.prioritizing.office.and.. project..capacity.diagrams.278 Roadmap.. 255 ... cost-benefit..214 . Kaizen.analysis..transition.92....282 S Sales..202 Sales... common.systems.(FASB).improvement.change.the.. concepts.192 .. communication.activities.time.170.and. waiting.example. reduce.characterization..and..and. infrastructure..273 Shining.39 .team.190.promotional..192 ...204 .and.(C. disorganized. process.7 . cost-benefit.194 .mode.and.map.analysis...supply.recognition.157 .marketing...improvement.improvement.182 .135 Sharepoints.292 Singapore..global. process.Quality. conducting.dies..new.and.breakdowns..2..53 Simulation.125 Single.events..281.case. follow-up.plot..process. process.team.and. deployment.212 ..277 .and. aligning.....and.

key.280 implementing.224 .analysis.51 Strategy.336  ◾  Index events.270 .229 Standard.process.178 ..(huddles). other..239–266 .214.plan..281 .measurement. key.... methodology.of..breakdowns.change..mode..224.268.analysis.142.teams.diagram. important. measure. key.Sigma. quality. deployment.296 Stakeholders.and.. deploying.25.10 .business.controls.(SPC).process.to..project.incorporating.32..and.strategies.customer.30 .error...statistical. statistical. inventory.9.22–25 .240..business..input.(KPIVs). overview.267 .methods.226.(DMAIC)... data.team.178 .191 Six..System.295 Minitab®. creating..8. how. Lean. 244–253. ..33 .61 Six.18–21 .41.(KPOVs).244 Statistical.11 Six.chains..19 Spaghetti.support..of.Lean.new..159. failure.improvement..work..steps.and.and.change..improvement.Minitab®.meetings.behaviors..17 .system.identifying.to..from. measurement..analysis.142 Statistical. building...activities.261–262 ...22.and.process...53 . data..requiring. reinforcing.5 . building.softwear. organizational.change.metric. control. management..30.deploy...requirements..240 methodologies...deployment....template..and.and... important.“belt”.98 .(FMEA).16.control..supply..for..280 .. .the..implementing... control.and..240 ..and.281 .. 254 Six.Quality.example.242–243 . tools.Sigma.137 outsourcing...205 . projects..for.control).. control. follow-up. reducing.and. .26–32 . .196..change.effects.3–34 ..152 Strategic..lean..191 SMED.methods.151.. analyze. .analyze.analysis.and.principles. communicating..improvements.5 . commitment.and.254 ..extensive.improvement.dashboards.data...analysis.of.system. 269 . overview.methods. 255–257 ...and. Kaizen.and.159 Stakeholder.system.elements.into.264 ..155 Standardization.3–34.of..a.three..group.performance. supplier.Sigma..five-phase..Sigma..a..122 process. . Companion. work.263 . suggested.Sigma. Six...259 .244 .21 process. improving...a.and.variables.67 Six.63.tools.61 Six.gaps.measure.tools.projects. 160 Six.change..259–260 .networks.team.waste.proofing.variables..61 .variables.control.global.collection. define...processes. process..150...problem-solving.122 . define. 177 .in.improve..(VOC)..satisfaction..initiatives.case. 24 Six... key..295 ...methods.of. process.new..96 Solutions.10–16 .analysis..189.and..execution. improve. general.reduction. Kaizen..222 .61 .methodologies...... organizational.Asia.process...and.statistical.initiatives.and. methodology .proposed.events.297 Small.and.collection...Sigma.258 .296 reinforcing. . Kaizen.and.and.sampling.35 . components.system..89.261..tools.and.activity.Sigma.111. Kaizen.42.129 ....control. 177.Sigma.analysis.. data.184 .. (define.changes. .and.222 .reading.control.analyze.239 .output.168 .128..Sigma.case.60 Statistical..alignment.phases .complexity.processes.measure.184 .92.analysis..223 .241 .plan. examples.137.solutions.244–253 Southeast.296 mistake.92 SMED.characteristics.162 .61 .222.tools.. outsourcing.behaviors.. softwear. projects..61 .253 .across.61..improve...process.244 . voice.questions..

Production..System.(IT).support..Grow”. process.93 Total.189 ..total.37 System.One.(TPM).(JIT).of.137 Transfer.scheduling. value-added.workflow...136 .Number.171.new...is.equipment.32 .28..maintenance.282 Top-down..117 .(TPM). 210. functionality.97 United..10.and... price.8.services.152 Summary.163 Supplies..flow.88....strategies.17.performance.in.236 Travel..57. process.several.of.77 System .38 . process.96.chains.93 System.state.jobs..workflows..58..4–7 Stratified.eliminating...128 Teams.batches.production.75 U-shaped.States.training.. 100 Toyota.expenses.reducing.rate.Index  ◾  337 .sold.253 Trial.63 Value.expectations.work.87.(SPM).of..series.105 . of..Service.complexity.control.. benefits.materials.time..184.breakdowns. calculation.standardized... key.and..98–99.93 ...chain.identifying.77. dysfunctional..157 Supplier.technology.28 Trends.. (Frederick.. constructing.63 ..productive.management.72..sampling.preventive.and..and... dysfunctional.run.and.process. within.Parcel.batches...system... 92–93 ..process.modified. global..forming.117 Testing. analyze.77 Toyota.. assigning....cells.74 . time.63 ..maintenance.30 t Takt....92.211.movement...workflows.278 .environment.230 Time. “Lean”.274 Transition.85. developing.63 .good.availability.31 Supplier. improvements.and.74–75 ..initiatives. relative.networks...(TPS).163.210 Supplier-input-process-output-customer..of..analysis.obtaining.15.101 .37 ..maintenance.114 .members..conducting. calculation—original..210 . summary.and.manufacturing.information.38 .... just-in-time. see also. 60..just-in-time..You...systems..59.8.(COGS)...92.Kaizen?.76.of..operations.63 ..12 Total.233 Unit...87 Transferring.Harvard Business Review article).103 .77 . (TPM) Toyota.prioritized.118 Supply..249 Unionized.and.30..100 Unnecessary.stream..92 v Value. what...products..reducing.69 u U-charts..importance..graph..and.37 Total.for.67 “The..to..61 .(VSM).61 Unnecessary.....map.Need.38 United.73 ..149–150 . “Preventive…Autonomous…Predictive”.164.. procedures.95 .content.31.pull.145 ...systems. utility.or...work..and..data. (SIPOC).studies..waste...170–171.117 Team..127 ..16.82 Time.develop.37 Team. process.(JIT).preductive. production. supply.202 .motion..cost.. information..concept.33 .63 . calculation—future. predetermined..and..182 ...Reichheld.76 Training...

17 .71.analysis.. balance.complexity.72. collecting.performance......team..Sigma.61–63 W Waiting.26–27..187 .and.operations.workflow.workflows.43 .76.workflows.279 .146 .195 Work.182 .145 .222 creating.implementing.79 Visual.63 ..change....customer. voice.Six.new.setup..setup. translating...data.144 .systems..of.office.to..of.... .workflows. critical-to-cost.changes.115 Waste..and. quantification. example..product.115.of.. reduce..new.and. strategy.(VOB).proofing.and..211 .mapping–SIPOC..61. alignment..of.127.workflows....10 . critical-to-delivery.and..(VSM).89 .106 .and.70.processes.280 Voice.and...eliminating.129 ...basics.60 Work .of.280.U-shaped. process..21 .material. outsourcing.205 .customer.100 Visual.workflows. eliminating. activities.(SMED)..analysis.create.operations.83 Work.with. organizational.a. process.events.(VOC)..91 .and.systems.70–73 data.development.62.58 “Walk.of.job..process”..118.receivable.. calculating. reduce..84 .(VOC).73 .and.35 Work.129 .212 .(JIT).117.30. visual...269 Work. ..(SMED). mistake..environments. 32 Voice.. example..process.and. Kaizen. Kaizen.207 .21 . process.(VOC)..146 building.29..solutions.controls.7.44 ..characterization.systems.and.alignment.27 ..requirements.time.case.135.(VA).and.and..and. process.stream.information.and.63 .150....the.63 .164. prioritizing.business.in. elements..95 War.operations..3 .by...supplier.flow.multicultural.7 ..145 Value-adding. .analyzing. . standardization.39.Six..themes.122 .105 .7.79.and.the.the.37 Work.duration.collection.37.themes.84 .analysis.exercise.time.120.projects..time.71 .create..analysis.characterization..of.unnecessary.156 Waste. example.and.154. process..basics..67 .. reinforcing.customer..11 ..planning.. Kaizen.131.system. project.unnecessary.and.27 .. ten. Kaizen.and.40 Wal-Mart. critical-to-quality. Lean.process.87 .(CTC). 120. value..150 ..alignment.(CTQ).rooms..operations.and.to.153.map. implementing.and.37 . common.motion.121 .behaviors.and.7 building. standardization...(JIT)..153 .themes.30.of.. quantification.environments..the..38 .and.of.281 ..themes.control.. voice....279 ..business.. 141–148..model. 74 .Sigma...systems.156 .process. reasons.. strategy.and.and..and.90 .26 .106 .about.. common.(CTD).. eliminating....63..workflows. process... Lean...for.pull.31.of. critical.. just-in-time...of.shadowing.129.242 . pictures.202 . just-in-time.. objectives.accounts.safety.activities.63 .Six. process.for...of. Variation.280 . outsourcing. reducing.event.. example.10 .(CTS).338  ◾  Index brown-paper.63 .11. process.38 ..cause.major. Lean.the..operation... Kaizen.74 .and..steps.and.253 .. Lean.144 .176 .implementing.of...Sigma.change.. process..139 .system... understanding.. workshop.software.163 ..61 .cells.patterns.space.. three.of.identification.53 ..to.251 Visio®.

.247. internal.278 .60.66 .systems.(WM).104...31.119 .....166 .chart....76 X X-bar.285 ..inventory.stations.120.. reducing...84 Workflow.173.43 Work-in-process.. 105..277. overloaded.management.251 z Zip..104 Workflows..Index  ◾  339 Work.(WIP). Internet-based.codes.

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