Lean Six Sigma for the Office

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

Lean Six Sigma for the Office

James William Martin

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

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

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

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

i  ◾  Contents

2

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

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

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

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

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

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

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

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

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

analyzed. reports. collected. Implement JIT 6.(CTQ).team.major. be. from. Deploy Lean Six Sigma Teams 9.successively. Customer themes or critical-to-quality (CTQs) characteristics. Comparison to process performance.. Eliminate Unnecessary Operations 5. with.the.7. Implement Performance Measurements 8.1. Implement Visual Controls and Pull Systems 4.translated.similar. stream.Ys.quality. operational.3 ten important elements of a lean system. 5. 8..workflow. 2. Customer demographics and distribution channel. Develop Supplier Networks 7. and.into.or. maps.themes.needs. These. (VSMs). Market research.value.then. Reduce Product and Process Complexity 3. 7.cost.specifications.internal. Identification of performance gaps.Table. Understand VOC 10.expectations.are. . table 1.into.and. Continuously Update Process Technologies 2.Strategy Alignment  ◾  27 1. 4.related. using. p ..to.time.. comparisons.7 translating the voice of the Customer (voC) 1. 3. directly. rocess. the.customer..being..by. Development of projects to close performance gaps. Market segmentation. Create Value Stream Maps Figure 1.characteristics.Kaizen. Translation of CTQs into specifications (Ys).critical-to-quality. 6.shows. characteristics.. made. value.or. data. or.how. performance...quantified. current. will. process.

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

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

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

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

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

Press..McGraw-Hill.and.productivity.Christopher.School.of.Donovan.Press. G.also.2006....work.Business. Burck.Sigma.. p .a. be.Sellers. 1996. Harvard.and.improve.It.to.continuous-improvement.Farrar.Mankins..methods.sequence.Straus.. a.Bennett.of. 2002.Giroux.The quest for value..a.Peter...NY.Sigma.organization. profitability.used.K.work. and.to.takes.Business.ed.improvement. volume. Minneapolis.Harvard..Six.summary.1990.2007.York. or.. an..York.deployment.Porter.are.. and.C.Press.an. ———.... be.. Charan...and..are.. strategic.S. be..an. forecasting and modeling.. rationalized.The value imperative—Managing superior shareholder returns.Lean Six Sigma for supply chain management..a..value.New.New.E.the.Englewood...Joel.and.in..projects.and. impact.and.Six.Tully.Harvard..MN..a. John.Auerbach. Reading.all.Prentice.concepts.1994.Michael.L.The world is flat..G..Addison-Wesley..process.Martin.Kotter.is. or.levels.within.. Michael.New. E.New.increase.In. Charles.initiative. objectives.. Robert. Stan. Ram.at.York:.that.New.viewpoint.Blur—The speed of change in the connected economy.and.The competitive advantage of nations...integral.. with.M.. School. Volkmann.example..W.in. The transformation imperative.Boston:.selection. Bossidy.an.Boston:. must. strategic.can.years.Handbook of financial analysis.III.P.Richard..New.In..Meyer...NY....MA:.1990. Operational excellence—Using Lean Six Sigma to translate customer value through global supply chains.Kontes.Tschohl.Press.Boston:.deployment.Six..tools.tools..Stewart..workflows.1998.Business.Hall. with.Achieving excellence through customer service.several.McGraw-Hill.used.Best.. strategies. Lean.the. goals. 2nd.1996.problem-solving.Brent...2001.to..1997.Lean. aligned.Sigma.. which..complexity..York:. Thomas....of..mentioned.logical. part.improvement. John.McTaggart.Strategy Alignment  ◾  33 d .system.was.Business.New. Suggested reading Larry. Business.Friedman..Crown.NY.. James.Siegel..Davis.part.York.As. Jae..NJ:.addition.Shim. 2008.The value enterprise—Strategies for building a value based organization.important. eployment..Kaplan... In.and.. services.of.W.of.Measures of manufacturing excellence...reduce.successful..Lean.York:. organization’s. Thomas.Harper.Wortman. John. ..an. Execution—The discipline of getting things done. James.1990.this. roduct.Free.methods... Boston:..ed.Free.shareholder..Cliffs.York:..Publishing.. can.Leading change.. from.of.. School...teams.Press.1996.

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project.time.setup.$200.000 (100%) Reduce Operating Expense for Work Area A (50%) Reduce Operating Expense for Work Area B (30%) Reduce Operating Expense for Work Area C (15%) Reduce Operating Expense for Work Area D (5%) =100% Reduce Overtime Expense (30%) Increase Machine Uptime % (20%) Reduce Scrap Expense (15%) Other Issues . this. of.machine.as: Operating.or..several.the.project’s.XYZ.availability. (10%) Reduce Rework Expense (5%) =50% =30% Reduce Setup Time (10%) A Kaizen Project for Work Area A =10% Problem Statement: Operating expenses for facility XYZ are $1.area.for.or. and. availability. machine.of..represents..is. work.might.or.operating.The.facility.represent.a.can.over.expense. week.project’s.000.percent.of. roject.$50.expense. in.charter. a.over.. areas.be.issues.Setup.10.total.000.50.analysis.work.to.executed.smaller.total.four.the. Problems with machine available in work area A represented 20% of the total XYZ facility expense or $200.. event. A.opportunity.all.expenses.facility.period. XYZ.time.fiscal.this.Lean.Kaizen.a. 50.XYZ.operating.for.projects.reduce.the. Figure 2. Problems.overtime.percent.000.problem.of.are.incidents.of.area.$1.000 for fiscal year ending December 31.000). using.across..this.percent.the.written.000. Facility overtime expense for work area A represented 50% of the total facility operating expense across all four work areas ($500.31.or.point. within.000.days.facility.executed.typically.. Project Objective: Reduce setup time by 50% within one week using a Kaizen event focused within work area A. by.Sigma.annualized.Six.statement.December.that.000).50.to.Facility.objective.an.for. Kaizen.in.expense. Setup time issues represented 50% of the machine availability incidents or 10% of the total XYZ facility operating expense. focused..42  ◾  Lean Six Sigma for the Office Facility XYZ Reduce Operating Expense $1. area. with.be. ($500. one.percent.represented.project.year. work...may.percent.longer. work.for.a.A. p .A.A.Sigma. .Six.save. within.represented.the.20.Lean.operating.facility.time.are.expense.. ending.000.1 project identification—breaking down high-leel goals.total.000.

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

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

S .provide.product.project.organizations.finance.3..of..in.Lean.Table.are.how..functions.business.rework. types. and.compliance.there.2.educational.organizations.regularity.several.calculate.well.an.to.Lean..even.process.Figure.vary.the. ubsequent.include.these.shows..benefits..shown.These.2.usually.2.are.vary.and. organizations..analyze.for.discussed.include.well.of.as...metrics. procurement. these. operations..shown.and.governments.common...2.organization. .detail.industry.an.by.examples.within.industry.organizations.marketing.others..institutions.Project Identification  ◾  45 Process Input Boundary Process Output Boundary Generic Process Workflow–Current State D1 A B C D2 E F G Business Metric Financial Metric Project Metric Compensating Metric • VA/NVA/BVA • Production rate (units/minute) • Scrap % • Rework % • Downtime % • Capacity (units/minute) • Setup time (minutes) • Inventory (units) • Floor area Figure 2.within.that.themes.routinely..to.organizational.functions.these..effectiveness. specific..specific.with. financial.These.may.an.will.efficiencies.2.function.The.will.several.as.manufacturing.be.chapters.metrics.associated.diverse.sales.of.and.in.are. resources. functions.industry.metrics.improvement.created..major.Figure.institutions.hospitals.projects. within. service. human. typical project examples The.Lean..or.other..In.rules.as.to.industry.in.2.examples..functions.retail..have..These.. improve.to.. to.types.also.in.design.Chapter..by. provide.2 project identification—process analysis.projects. Projects. disparate..within..as.

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

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

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

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

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

that.of. important.can.their. To reduce the accounts receivable cycle time by 50% in the 31– 60 (15 days) to save $61.strategies.identifying.resource.643 $ 61.643 $ 56.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.Figure.deployment.. 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).3 project charter example.that.000 $ 56. over.an.4. to.be.are.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.strategic. improvements. e result is lost interest expense from money that should be collected no later than 30 days from invoicing. also.to. ensure.to.organization’s.643 Comments Team Information Team Leader: Team Members: Name Role Expertise % Time Figure 2.identified.projects. e average A/R balance is $15 million between 31 and 60 days..projects.include.used. is.already.close.gaps.6 K ($15 MM) *(15 Days/365 Days)*10% = $61.gaps.several.above.There.minimum.in.are.have.objectives. productivity.common.prioritize.These.through.performance. most. projects.are.and.Some.the.expenditure.that.performance.to.with..shown.000 $ 5.strategic.and.. $10 million between 61 and 90 days and $5 Million over 90 days.obtained. . of.been.analysis.643 $ 5.an.of.prior.goals. prioritizing projects Prioritization.2.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

d.2 transfer batches. .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.

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

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

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

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

Lean Six Sigma Basics  ◾  93

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

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

2. Maintain standard production rate

3. Reduce yield loss at start-up

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

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

94  ◾  Lean Six Sigma for the Office

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

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

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

1500

1250 Units (000)

1000

750

500
M ar

ch

Ju

ne p

Se

m te

be

r e

D

m ce

be

r M

ar

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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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own.of.bringing.interpret.simple.in. Recall.the.we.meetings.Lean. international.it.few.in.. are. quantitative.have.and.communication. team. to.mutually.of. were.standardized. event.a.2 Kaizen eent communication letter.Throughout.highly. in.difficult.leader.diverse.Sigma..expected. updates.with.elements.and. than.ago.specific. organizations.letter. country.an.and. from. process.the. appear. teams.differences.the. This.had. between.of.make. the. We will need your combined support to make this five-day event a success..support. dispersed.from.could.example.resources.a.may. changes.as.take.held. we were recently trained to identify and eliminate root causes for poor operational performance.where. reporting.the.. Regards.. letter.However.modified.zones. different.Asian. difficult.conference.part.its.weekly.recipients.2.between.who. since it has high levels of scrap and rework that are costing our facility $TBD annually.China. particularly.at.communication.. required.members.your.letter.that..Six.Key.provides.does.were.a.be.the.be.the.Figure.is.great.. more.The.early.team’s. communication.event.needs..and.Communication. important..stages.to.will.a...from..Singapore.the. country. standardized.consulted..can.. multicultural.country.which.. because. have.be.team... .is.event. facilitate.call.any. However.a.the. communication.India.major. letters. qualitative.teams.given. event.a.will.because.teams.to..I.As.of. Kaizen eent Communication letter Kaizen.organization.to. business.an.team.of.. To.reason.enormous.as..not.years..time.for.a. in.together.for.Kaizen Event Planning  ◾  125 Date From: Subject: To: Event Leader Upcoming Kaizen Event in Area TBD Distribution of Impacted People Hello Everyone. approach.deployment.and.suit. several. I will be meeting with each of you over the next several days to discuss how we should prepare for this event.who.across.several. we have identified several areas within our facility that would benefit from application of the Lean Six Sigma tools and methods.the.should. communicating.benefits. Area TBD is the first area we have targeted for improvement.logistical.had.speak.include. teams.well.communication. and..members.if. time.announcement. agreed-upon.deploy.Kaizen.distances.between. Event Leader Figure 4.4.letters..Japan.English. each.the.process.countries.a. the. formats. As you know.Korea.. the.the. geographically. their.

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

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

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

and.and.encouraged.means.to... The Kaizen team should be selected to reflect the project charter’s scope and process boundaries.in.The.team.process.to.a. Keep the event’s schedule and make adjustments based on changing circumstances.reflect.respect.participants.important.events. is.of. .it.coordination..activities.enablers.experienced.should.as.necessary.boundaries.operations.within.event’s. and changing their process.experience.First.business.to.Kaizen. days.the..real.their.in.Kaizen. to. 9.4.and.to.at.. Team members should be trained as necessary in the proper use of tools and methods for problem identification. that. A project charter should reflect a business opportunity and be scoped for execution over several days.and.as.process.the. agenda.facilitation.of.with.styles. An. Second..event.4.be. Celebrate success! for.speak. to.internal.scope.and. to.a.in. responsibilities.minimum.responsibilities.of.lists. event. Team members should fully participate in team activities.an. Kaizen.consist..its.charter’s. analysis.event’s. The team should be balanced relative to its experience and work styles.agenda..roles..that.for.event..is.expectations.to.organization. over. up. Facilitators should obtain team feedback every day and make improvements to the Kaizen event as necessary.a.a.opportunity.suppliers.that.work.Experienced.team.use.. several.their.be.customers.or.methods.dynamics..a.do.data.that.a.everyone.schedule.are.members.an.. the. be.also..the.of.people.everyone.facilitated. 6.facilitators.that.In.the.Once.result.fifth. project. 2.In.proper..facilitation. team.tools.members.scoped.who.event’s.contribute.important.and.should..in.. enable.the..ensuring..should.its...As.of.Also.process.and.of. the. The Kaizen event should have a prepublished agenda with roles.it.team.by.ideas.use.phase.a.the.. is.adheres.the.execution. and.and.method.the. 5.scope. comprising.methods.occur.important.people..is. team.is.it. measure.. 7. event.for. a. quantified.participate..to.4 important eent Facilitation methods 1. an.member’s.the.part.be. an.An. 4.more.their. important.keep. trained..should.example.properly.collection.with.some.communicates.addition.balanced.reflect. process.front.event’s.and.be.scheduled.an. 10.activities.analysis.as. members.several..facilitation.group.and. important. selected.work. The team should be facilitated be people familiar with team activities and dynamics.a. 3.team’s.an.useful.event.planning.project.well.may.the.team.. of.integral. meets. the.team.. be. data collection.to. success.team.managing.to.is.As. activities.prepublished. and activities. Table.This.important.the.problem.changing.charter.is.130  ◾  Lean Six Sigma for the Office table 4.of.external.facilitation.with.addition. 8. it.a.identification.fully.

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

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

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

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

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

ollection. processes.and.those.under.systems.integrated.Six.. this..a.the. meetings.tasks.1.4.a..more.high. organizational..discussed. can.sustained.and.methods.In.those.stream.using.do.5. properly. Internet.are. that.. longer.a.work.operational.other.world.several.will.collection.stationary. level..true.can.within.countries.obvious.Table.if..Sigma.content..over.within.having.to.others.the..to.a. ommon. on-site. yields. been. Sigma.analysis.and.found.concept.Also..their.strategies.seen.calls.collection.their.chapter.observer.may.we.deployed.been.the.uses.unique.the. while.are.also. broken.in. may.workflows.in.IT.. VSM.easy. However. However.always. Service..studied.and.as. and.are.characterized.associated. as.modification. collection.meetings.task.present.tasks. be.useful.difficult. must.is.proofed.First.of. this.see..activities.computer.workers. these. machines.highly..activities..intranet. task.. a.similar.deployment.metrics. flowed.variation.higher.Lean. their.to.Kaizen.Lean.over. workflows.data. and.deployment. systems.format.will.each.systems.methods.mapped.tools.to.from.live.fact.. why.if..a.be. data. cycle.to.After..analyzed.work.enable.has.this.are.around.because.industrial.service.a.Six. has. at.difficult.office.can. using.completion.in. functional. work.is.globally.necessary.a. to.methods..and. detail. major.discuss.It.team.can.that. analyzed. VSM.to..some.service. deployed.Six. components.data.is.VSM. c . its..chapter.environment.analysis.of.words.value.any.Lean. .in..can.be.a.Also. cost.processes. value Stream mapping In..Kaizen. used.in.types.customers.4.process. than.shown. conditions..very.work.mentioned.and.among..may.be. not.and.manufacturing.and. and.4. level.deployments.manner.tools.has.that.without.similar.process..that.manufacturing.a.conducting.new.work.in.work.analytical. times.analyze.well-established.and.tasks.will.major. useful.team. operational.was.more.will.4... into.This.people.financial.trained.In.common.Data Collection and Analysis  ◾  143 c .controlled.their..of.where.many.facilitate.require.highly.transactions.means.its.original. statement.processes.mapping. activities.service.in. and.in.engineering. higher. information.These.manufacturing.across..examples.and.similar.tasks.Although.mistake.analysis.. if.been. finally.result.analysis.see.its.system. and.time.a.its.In.conference..teams.reoccurring. an.types. down. not.and.a..what..include.the.. we.that.These.be... team..manufacturing.manual.from.they.in. at.fact.be..systems.methods.is.analysis. be.repetitive. will. its.a.and. lower.. relatively.be.Figure.suppliers. very.the. meetings.However.a.this.and.using.materials..it.In.and.and. then.completes. work.makes.is.data. through.and. chain..part.Several.This.VSM.an. this.visible.supply. face-to-face.long.standardized..are.integrated.and.on.for.usually.. high-level.improvements..Complicating.should.operational.information.several.in.conditions. of..collect..in. and.activities.Chapter. and.operational.is. aligned.work.larger.appear.methods.focus.but.and.the.were.these.of.tools.team.to. be. operational..(VSM). straightforward.relatively.usually.be.this.studied. or.were. transactional.We. Table..in. off-site.Lean.workflow. topics.1.which..an. Sigma.usually...work.include.methods.operational.

. have.breakdowns.be. Construct the Value Stream Map (VSM) Figure 5. will. discussion.a. In. when.chapter.be.workflow..that. .of. at.at.and.this.. a.eliminate. d .charters.In.that.VSMs.Figure.linked. the. a. on.and.to.major.higher-level. described.and. Provide process documentation.process. major. a. to. The value stream map is a visual model of the process including all key operational metrics.well.be.are. 2.1.it.VSM.is.defined..a.VSM. The. team. result.. workshop. iscuss.project. Identify process simplification opportunities.in.detailed.other.In. a. Identify areas for operational improvements. created. workflow. been. 4.1. to. for.in. step. the. VSM. charters. level.supply. 3.to.Table.charters.levels.of.context. prepare.a. 3. be. focus.project.project..by. focus.steps.objective.the.1 three major steps to creating a alue stream map. advantages.to. 6. Prepare for the Value Stream Mapping (VSM) Workshop 2. our. to. Identify rework and non-value-adding (NVA) operations.situations.words.of.project.problem. of.5.5. specific..can. detail. project. we. create.across.charter’s.three.an.creating.a.chain. process.144  ◾  Lean Six Sigma for the Office table 5.will. is.organization’s.these. Kaizen. As.VSM. first. as.sequential.. Analyze the Value Stream Map for Improvement Opportunities Value Stream Mapping 1.shows.important.In. Understand key process input variables (KPIVs) and their effect on key process output variables (KPOVs).create.assumption.shown. was. charter..lower..statement. chain. of.used. This. 5.1 Why Create a value Stream map? 1.a.more..several.supply.strategically.will.our.maps.

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

activities. A.a.workshop.and..very.or. of.also.members.resources.are.documents.process.leaders.team.are. a.gathered.necessary.level. of.be.In.a.. shown. relative. exercise..paper.this. activity. a.prior. .been.VSM.data.will. examples.a.forms.correspond. Identify and prioritize improvements using 5S.up.a.event. in.5.commonly.A.to. 9.on.with.to..activities.VSM.its.Any. Figures. In.benefits.. charter. that.focus.its. mistake proofing. Ensure that the level of mapping detail provides information sufficient to analyze and eliminate the problem.activities..completed.because.sufficient.execution.a.also.schedule.5. Analyze the value stream map for non-value-adding (NVA) operations and rework loops.And. and.and.process.owners. 6.to.various. waiting. Analyze the value stream map for long cycle times and capacity constraints including the system’s bottleneck resource.to.. of..help.is.Kaizen. Create a modified value stream map of the improved process and use it a guide to the process workflow’s “future state.to. operational. 7.hands-on.on.a..will.has.tight.as. be.deployment.a.method.. or defects. 4. is.another..Kaizen.will.and.a. major.to. Ensure the project’s problem statement and objectives are well defined. A.overall. excess inventory.complete.ensure.. highly.Kaizen.the.quantify.can. are. and.146  ◾  Lean Six Sigma for the Office table 5. it.team.a.is.project’s.map. brown-paper.team.paper. it.will. that.business. collection. Develop controls to ensure the improved process remains in a stable state and in control. exercise. Analyze the value stream map for process waste such as overproduction.Also. inefficient production.its.is.a..can.to. This.an.event. 3.attached.stored.a.supporting.brown. Develop a simple project plan.where.” 8.documentation.team..an.VSM. by. characteristics. addition.of.analysis.3.informational. and other Lean methods.brown-paper. excess travel.2.work. and. advantage.build.. to.local.interactive.control. including a responsibility matrix to migrate to the improved process. data.and.VSM.of.location. 4. reports.and.rolled.constructed.work.improve.analysis..project. Table.be.a.construct.the.the. 5.similar. metrics.moved.a.team.quickly. Select team members based on the project’s process boundaries using a Supplier-Input-Process-Output-Customer (SIPOC) or similar method.and. a. 5.3.exercise.work.at. 10. key.2  10 requirements necessary for an effectie value Stream map 1.brown. by..detail. is. brown-paper.used.within.team. Use a visual control system to monitor and continuously improve the process over time.Once.important. excess movement. available.it.and. 2.to.a.collection. Important.anticipated.

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

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

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a.0 55.and.0 11.0 2.the.audit.percent. using.0 50.0 55. baseline.additional.may. of.0 15. initial.a.Kaizen.to. be.in.was.a. useful.can.collection.to.accounts.5.7 85.and.is.time.one.will.50 420 Date: July Auditor: Joe Takt Time: 8.000 3.several.environments.or.0 16.0 63. Lead Time o.any.demonstrate.shows.analysis. operational. Inventory (Units in Queue) 9.0 19.percentages.0 17.chapter.Figure.3 60..job.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.increases.0 18.1 1. an.specific.7 99.7 1.0 74. proofing.800 3.0 33.0 20.0 13.1 75.9 56.office. that.that. it.7..0 10.in.analysis.other. Production Rate (Units/Time) or Operation Cycle Time 3. projects. Material Availability t.order.000 5. perspective.use.0 16.that.issues.can.template. Floor Area Additional Metrics (Depending on Industry or Function) a. the.000 10.changes.(VA).from. through.5 87.8.0 27.contained.Figure.3. Number Employee Suggestions e.on.0 14.in.metrics. Forecast Accuracy n.0 13.the.that.5 81.15.improvements.0 68.2 1.issues. a.3 1.Lean.good.value-adding.for.0 15.0 25.5.0 16.to.0 26..increases. There.0 16.depend.of.800 3.combination.value-adding.the. are.0 24.1 78.two.red-flag.done.This. because. Number of Problem-Solving Teams c.percent.0 28.3 63.red-flag. Schedule Changes q.VA.This. or.0 24.reduced.is.0 16.more.0 17.shown.Figure. event. time.of. First Pass Yield (Rolled Throughput Yield-RTY) j.source.137.0 10. Kaizen..rework.can.process.0 18.8 100.7 4.Kaizen.in.0 17.of.Later.of.of.4 30.0 28.15.1 76. is.9 30.categories.lists.total.1 24.75 50 $1.0 66.performance.function. information. Capacity (Units/Time) 7.including.provide. both.tools.Figure. (NVA). On-Time Supplier Delivery m.be. have.0 65. Inventory Efficiency (Turns) l. non-value-adding.how. using.000 10.lists.to. shown..process.0 19. schedule.0 20.in.0 21.be.0 21.whose.be. methods.example.0 25.commonly.0 29.mistake. increased.0 29. Downtime% 6.. follow-up.also. Percentage Scheduled Jobs Missed i.could..0 14.0 2.0 21.0 12.percent.identify.As..0 21.be. impact.0 8. The. Rework% 5. Data Accuracy s.advanced..4 58.Figure.in.advantage.to.9 17.8. example.0 62.and.5.0 69.5.1 1. Number of Customer Complaints d.0 60.initial.of.level.a.0 23.several.a.of.process. to.simplification.8.0 16. .0 30.5.such.1 62.0 19.0 1.1 6575 Average 15% 26% -27% -17% -14% 42% -17% -30% -34% Figure 5.0 2.classic. to. Overdue Backlogs r.a.5 1.0 5.the.at.0 15.standardization.0 15..team.0 1.time.0 15.a.process.team.process.approach.7. Unplanned Orders p.“frequent.their.800 Week 9 Week 1 Week 2 Week 3 Week 4 17.additional.. other.Figure.measurement.000 5.possible.0 12.data.1 1.0 63.9 14.0 17.000 10.0 28.0 16.this.000 16.0 25.6 27.This.percentage.000 5. important.0 23.0 2.called.in.efforts.3 92.job.0 52.a.in.which.office.. an.of. either.7.0 20.detailed. Setup Time (Minutes) 8. shown.0 20. been.4).a.0 17. in. collection.through.will.The.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.a.shows.0 13.scrap. that.projects.0 64.800 3.industry..to.audit.0 22.0 30.0 19.0 14. as.0 20.metric.000 10.shown.same. Excess & Inventory 15.0 1.number.several.the.0 19..those.0 24. because.5.negatively.0 18.of.similar..An.7.the.the.0 70. performance measurements (similar to Figure 3.”.within.in.other.As.analytical.list.we.0 72.Figure.000 5.changes. Profit/ Loss k.environments.payable.0 54.but.9 72.0 14.4 31. Value Adding % 2.classifications.0 18.0 25.. Warranty Expense/ Incidents f.0 63..an. several.000 10.application.0 100.2 26.000 18.of.example.time. from..0 19.0 24..5 24.0 9.a. information.0 16.conditions.the. data.5.template.using.0 18.0 27. Annualized Savings h. is.prioritize.0 20.a.be. a.0 1.0 21.0 18..improved.as. condition.methods.2 1. Figure. and. As.0 22..2 1.0 13.implies. Returned Goods Expense/ Incidents g.000 5. Scrap% 4.7. Total Process Workflow Cycle Time b.5. immediately.8 1.0 55. 85.17.0 73. quality.

5. Work tasks that can be eliminated form the process.operational.increase.may.waste. analyze.template.a.causes..the.for.office.operations.will.of. payable.Kaizen. the.occur. operation.into.the.eliminate. Employees confused as to work task. its. well.the.either. to.. number.50 $0. lower-level. Jobs have been pending for weeks.of.5 10.accounts.be..time..the. New employee not familiar with tasks. issues.00 $19.process.miscommunication.its.In.and.50 $21. 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.time.should.will.requests.Figure.operations.customer.due. As.a. metrics.50 $0.of.occurrence.root. Had to call supplier several times. Work procedures can be made more efficient. Jobs required three signatures. spent.process.50 47% Jobs could not be completed due to incomplete information.issues. Figure.due.used.excellent. into.reduce.of.a. .sources.schedule.a. reasons..and.the. and. shown.serve.this.to.issues.myriad.to.a.9.probability.50 $0.greater.as. important.00 $75.be.00 $75.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. time. and.5.down.. These.time.of.or.within. The.a.these.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.cost.00 $7.within.then.workflow.process..The.for.of.will. of.5.causes.team.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.as. modified.00 $30..lack. conditions.50 $79. broken.improvement.00 $13.in.. elimination. in.may.will.to.The.75 $10.137.level.to.or.75 Date: July 50 Auditor: Joe $1.in.increase.context.reduce. machine.00 $15.lead.50 $0.root. red-flag.activities. shown.50 $9.50 $535. Jobs required several sequential operations.continues.This.5.projects.a. is.the.. root.. other.the.00 $52.template.changes.analysis”.process..processes.and.“standard.commonly. Employees did not have information to perform job.of. or.their.can.time.00 $22.wasted.the.00 $0.be. every.00 $52. down.8. Jobs for these suppliers are run once per year.the. example.percentage.(VA).within. be..analyze.and.Figure.expediting.situations.in.lead.Figure. also.teams.as.Kaizen.9. other.value-adding.50 Takt Time: 8..also.50 $0.team. Figure 5.at.investigate.changes.occur. the. Job was rushed due to poor planning.8 process audit worksheet.of.00 $10. breakdowns.materials.factors.error.workflow.drill.00 $0.template..due.shown. Lack of clarity regarding start of invoice. useful. In.can.. In.manufacturing.8.causes.the.25 $15.a. Jobs were released at the end of the shift..its. increase.shown.also.to. Jobs had to be walked to another department. at.

more.be.focus.. one. time.time. ..baseline.issue.also..of.non-value-adding. process.time.percentages.was.performance.very.waiting..in.similar.that. the.the.45.To.time.the.waiting.a.process.non-value-adding.priority..the.to.5.a..of. 25.50 420 Time Due to Defects Date: July Auditor: Joe Takt Time: 8.relative.9.represents.the.team.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.minutes. identify. time.to.our.4% Figure 5.level.Perhaps. time.9.5% 12... should.part.the. cycle..It.2. of.time.75 50 $1.in.1.to. long.either. to.Figure.workflow.template.these.broken.place.to. the.2% 16 44 37 4. be.performance. reasons.minutes.analysis.analysis”..9.8.on.time.which.as.an..longer-term.a..may.discussion. major.percent. shown. the.jobs.job.85..process.a.down.percent.summarize. for.5.5.several.gather.Figure.are. or.event..of.for.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.estimate. non-value-adding..a.example..focus.shows.“summary.just. within. the.the.approximately.be.the.In.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.first.waste.payable.useful.Figure.be.process.5.This.in.wasted.already.can.are.how.operations.of.this.a.focus.lower.of.would.and.Figure.estimated.categories.the.357. 357.the.which.accounts.operations.is.event.in.one.components.data.total.good.accounts.equated.9 Waste analysis by operation.These.As.3% 45.9% 11. of.reflective.of.a. Kaizen.Recall.within.also.total.across. from.3% 10.information.percent.the.if.at.137.3.or.of.ensure.represents.Kaizen.10.total..

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

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

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.

necessary.service.can.time.In.than.5.contrast.the.product.shows. applied.percent.production....A.are.be.by.organize.“effect”. increased.the.to.Table.year?.into.which.required.theme. may. 25.produce.increase.an..In.the.average.increase..the.investment. reports.focus.than.is.into.ideas.6.last.down.is. an.line.increasing.percent.inventory. first. a.diagram.be. However.ratio.answer.a.sales.to.investment.detail.in.major.inventory.divided.a.analysis.XYZ.material.an.by.of.relative. cost..sales. is:.labor.example.the.Table.a.C&E. exceeded specification? analysis. financial.that.COGS.have.“inventory.factors.of. Inventory turns (average inventory investment necessary to support sales) decreased by 25%.a. investment.higher.decrease.how.should.is.from. would.the. five-why.of..themes.important.sequence.did.This. to.year. Reviewing.“Why. 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.percent?”.. to.five-why. the. has.Inventory. example.of. Why. a.in.inventory. 5.(COGS).could.used. operational. find. team. faster.inventory.. Using. operational.by.invested.turns.that.be. percent.turns.inventory. team.team. the.turns. the.. Machine A has not been running at 95% of the required target rate.work-in-process.or.of. .question.6.(WIP).some.faster.in. inventory.sold.they.analysis. to.goods.is.decreased..brainstorming.in. Kaizen.166  ◾  Lean Six Sigma for the Office table 5.25.find. or.As.investment...several.one..increased.by.percent.last.also.. inventory.useful.to.seen.due. report.be.the.”.the.in. 25.levels.inventory.would.five-why. method.production.5.level.that.example. Lead time of production line “XYZ” increased by 5%. question.a. 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. to.6 Fie-Why Analysis Level of Question Effect (Output) Answer (Opinion) Inventory Investment increased 25% faster than sales last year.25. sales.This.they.example.increased.differences.of. shown.but.and.major.be.may. ask. required target rate? Why has there been a scrap problem with raw material component B? The component’s outer diameter periodically exceeds specification.that.in.useful...COGS.lead.the.in.

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100 $171.900 $38.100 A B C D E F Count Percentange Project Estimated Impact** Canceled Order Schedule Change Late Deliveries Large Lot Size Missing Materials Quality Issue Total Cost-of-Goods-Sold (COGS) Inventory Investment Due to Issues Total Inventory Investment Inventory Turns Ratio ** Subject to verification Data Collection and Analysis  ◾  179 Figure 5.700 $42.000.000.000 5 100% $1.000.000 64% 17% 7% 4% 4% 4% $638.900 $42.400 $66. .25 high inentory inestment—first leel.000.Reason (Issue) 134 36 14 9 9 8 210 $10.000 $1.000 $2.

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.341 $47.164 134 100% $638.164 Inventory Investment Due to Canceled Orders ** Subject to verification Data Collection and Analysis  ◾  181 Figure 5.27 high inentory inestment—second leel.Root Cause (Canceled Orders) 9 108 10 7 7% 81% 7% 5% $42.862 $514.624 $33.337 A1 A2 A3 A4 Count Percentange Estimated Impact** Project Inaccurate schedule Late delivery Missed Schedule Unknown Total $638.

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maintenance. and verbal instructions. just in time. mistake proofing. ◾ Implement 5S. ◾ Apply mixed model ◾ When should an scheduling to operation be performed? reduce lead-time. ◾ Process audits and monitoring such as statistical process control. ◾ Purchase or design new types of equipment. ◾ Where should an ◾ Manage bottlenecks ◾ Eliminate portions of to maximize the flow operation be performed? a process. of materials and information. ◾ How should an operation ◾ Deploy transfer rather than be best performed? production batches. and quick response methods. and similar Lean methods. ◾ Training programs. testing. ◾ Create new or modified process designs and layouts. ◾ Who should do the work? ◾ Deploy Lean. . and other procedures. inspection. ◾ Group meetings (huddles). ◾ Create new information reporting systems. Specific Process Change ◾ Modify organizational reporting structures. ◾ Deploy Six Sigma and related initiatives. ◾ Create new operational and financial metrics. ◾ Modify work.186  ◾  Lean Six Sigma for the Office table 6.1 Common process Changes General Questions ◾ Should the work be performed? General Methods ◾ Eliminate operations and work tasks. ◾ Mistake proof portions of a process. written procedures.

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as..sales.information. several.3. Inaccurate forecasting model parameter estimates or using the wrong forecasting model result in producing the wrong types of products. places.because.simple..buildup.1.workflow.shows.by.a. Figure 6.financial. finance.caused.they.of.a.but.data.6. gain or loss of major customers. operations.products. sales.marketing.low.they. Intermediate and Longterm Time Horizons Adjust Linear Allocation Based on Expected Sales by Product Group (Some Groups >5% and Others <5% Provide Capacity Guidelines/Modify Capacity Based on Forecasts Provide Inventory Information to Offset the Forecast Typical Issues Miscommunication. and.of. . they.process.a.for.example. lost. revenue. Estimate beginning and ending inventory.not. Inaccurate estimate of current and future capacity.type.compete. well.and. 3.sales.other.As. In.because. Inaccurate estimates of beginning inventory result in too much or too little production which drags down the financial forecast. Adjust revenue allocation by product group.contribute.process.be.marketing.a.increase.may..margin.building. Miscommunication.industry.of. 2.between..or. Estimate required capacity. biased allocations. could. Provide financial targets. functions.. Forecast All Items and Locations at +5% Over Prior Year Finance Review Forecasts with Marketing and Sales as Well as Operations Systems Forecasting Modules Operations 1.are.example..how. Figure.this.can. down.miscommunication.to.. as.3 Logistics Operations Sales and Marketing example 1: Financial forecasting.This.process.agree. Inaccurate sales estimates.that.sales.Operation. break.production.in. unrealistic.cause.Nonaligned.sales.inaccurate.missing. forecasting.typical. using. it.may.or.Process Improvement  ◾  201 Finance–Financial Forecasting CEO and Leadership Team Provide Financial Target (Increase Sales Revenue by 5% Over Previous Year) Adjust Forecast by Product Group and Linearly Allocate Percentages to an Item and Location Level Master Production Schedule (MPS) Offset Over Short-term. scarce..know.breakdowns. unrealistic sales targets results in wasted capacity and lost sales. 5.include. other.breakdowns. Forecast revenue for product group.of.may.research.inaccurate.that.capacity.profit. and.have.issues.functions.and.may.declining. an. 4. financial. five..revenue.incentives. where.cause.. targets.

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

process.However.customer. Order processing.accounts.operations..process.customer’s.causes.become.in. addresses.a. one.be. failure to discover missing or surplus items and related issues.In.part..quantity.product.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.inaccurate.charter.address.for. 3.customer.or.. is.This..the.could.a.this.root.to.in.taking. Invoice is paid by customer. Customer fails to properly receive an order resulting in receipt of damaged items. 4.6.or.name.even. or. its.... and amounts are entered into the system or incorrectly converted by the system.eight.common.first. or damaged items prior to shipment.of. misinterpretation.process.a. arrive damaged or late.second. Order is lost or potions of the order are lost. 6.an.shown. item.4 example 2: Accounts receiable.product.a.order..ordering.receivable.the.the.similar.systems. places. Order accuracy check prior to shipment.these.product..of.customer.may.an. Failure to protect order from the environment. Invoice is sent to customer. 8. Invoice is not created due to missing information or is created using inaccurate information.may.this. Incorrect names.have.error. Failure to discover missing.for.. Typical Issues Incorrect quantity or product is ordered..project.of.orders.In.product.serve.request.may..employee.a.incorrect.a.4.include.Any. . the..team’s. an. Order receipt..Figure.information.basis.a.This.a. surplus. type.product.At.if.may.team’s. 7.type.automated.of.service.correctly.the.entering.or.an. 2.the.in. Order is sent to customer. Invoice is sent to wrong customer or delivery not verified by supplier. Invoice creation.incorrectly..step.of.misinterpreted.Kaizen.as.a.operation.operation. 5.analysis. Customer places order. Figure 6.the.related.issues.are.order.

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

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

3. Failure to review new concepts with customers to obtain their feedback in a methodical manner. Figure 6.206  ◾  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. Review concepts with customers. . and similar data collection methods). Ineffective or inefficient survey choice of methods (emails. 2. Gather the VOC. Typical Issues Lack of quantification or methodical survey methods used to obtain the voice of the customer (VOC). focus groups. Failure to develop alternative designs that meet customer and business requirements and their characteristics be evaluated using structured methods. Develop alternative designs. site visits. 5. 4. Estimate customer needs and requirements. interviews. Work with product design to translate VOC into design specifications and prototypes. All VOC information is not transmitted to product design or additional requirements are added that customers do not value or need.5 example 3: new product marketing research.

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

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

employee.the.issues.and. be.there.to. between.in.hiring. 2.termination. activities. operations.team. 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.improved.using.skills.. Ineffective on-boarding results in employee or hiring manager dissatisfaction. of. 4.related.analyze.000.process.having. for.that.are.It..to. they.for.turnover.special. accommodate.in.which. a.a.hiring.an.measure.operations.hiring.more.failure.capture.work-hour. days. a. on-boarding. terminated.concerted.associated.this. p .processes.Inaccurate...be.as.job.a.teams.a.Kaizen.factors.were.$1.A. workflow.the.related. missed.typical.to.found.hiring. manager.that.division.a.employees.policies. Poor coordination between the hiring manager and job applicant results in a loss of applicants or long cycle time. simple. start date.improve.000.and.was. example.description.this.solution.similar. interviews.making.without.annual.translation.people.a..work.rate.job. these..its.to.relevant. year.with. Kaizen.of.to...or. hiring. Typical Issues Inaccurate capture of job requirements such as skill levels.manager. of.type.performance.the. are. and. consists. .to. new-employee. education..with.broken.in. Pay Rates and Compares to Organization Policies Hiring Manager Job Description Reviewed by Hiring Manager Job Description Is Accurate No Yes Hiring Manager Interviews Candidate Yes Does Candidate Meet Job Requirements ? No Candidate Is Acceptable No Yes Job Requisition Is Complete Human Resources Retrieves Standard Job Description or Creates a New Description Human Resources Job Description Is Posted Internally If No Internal Candidate Advertising Copy Is Created for Newspaper. lower-level.employees. iring.to.once. employees. of.of.operation.process. requirements.include.in.becomes.7 example 5: hiring employees.of. experience.retaining. the.way.as.the..Important..see.excellent. well.new.effort. Figure. process. 3.one.been.and.education.an.each. new-employee.from.it. olicy.translation. Figure 6.include.often. Ineffective communication vehicles for the type of job or the applicant pool.of. or other relevant factors results in wrong job applicants.posting.examples. Coordinate on-boarding of new employee. per. needs..requirements..manner.In.other. as. shows.percent. a..employee.Issues.requirements... if.changed.Process Improvement  ◾  209 Human Resources–Hiring Employees Hiring Manager Requests an Employee Using a Job Requisition Verifies Required Job skills. Post the job description to attract job applicants.accurately.a.a.expenses.description.into. Coordinate job applicant interview process.. certain. applicants.job.requirements.. The.6.analyze. of.in. Translate hiring manager requirements into job description..tasks.to.resulted. Each.than. experience. job. h .7.formal.manager.previous.not. well.where.HR.the.do. number.my.has.100. coordinating. as.

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

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

Using.Kaizen.. the.strong.team. these.shown.as.leadership.causes.variety.shown.team. that.focus. projects.goals.an.as..chapters.a.their.potential.concept.process.system’s.and. between.Figure.Sigma.analyses.a.to..cause. Kaizen.satisfaction.teams.a.several. projects. production.and.create.to.has.to.eventually.for..discuss.analysis.is.of.prioritize.in. inaccurate.earlier.the.customer.example.as. with.information.in.tool.path.included.research.productivity.addition. other.important. to.a.Figure.build. be.are.problem.is.business. information. manner.root.this.Kaizen.to.projects.poor.shown.be. that. reviewing.related.shown. worksheet.to.have.actions.few.the.a.. in.the.These.that.using.this.in. internal.5.new.in.should. design.approach.list. analysis.future. properly.to.gathering.performance.continue.this.become.productivity.to..to. being..to.market.are.requirements.low.is. projects. products.we.It.simulation..objectives.it.always.and.actionable. problems..worksheet.was..to. this. and.Figure..project.improvement.will.event. cause. earlier.and.resources. management.9.Figure. chapters.approach. project.listing. relative.6. in.using. opportunities. can.project.. information. team. Recall. a.in. to.Lean.of. discussion.a.for.projects.”.Kaizen. specifications. The.without.resource.projects.where.Six. charters.“root.in.formally.if.in.of.a.performance.implies. back.their. benefits. potential. their.should.bottleneck.be..increase..“future.issues.the.projects.will.9. ..This.from. quantification.review.Prioritization.A. design. their.identifying.a. using.similar.and. transferred.executed.operational.product..Kaizen. marketing.to.relative.difficult. new.“required.ideas.6.projects. was.will.process.. the.ideas.entitled. and..detail. assessment. cause-and-effect.Kaizen. that.”.returned. using. aligned.include.to.An. improve.was.noted.VOC.should.worksheet. failure.during.to.a.or.the. characterizing.that. through. poor.prioritized.in.immediately.suggestions. forth.ideas.to. within.project.6.not. Our.discussed..business.provide.in.how.which.with.a.teams.can.quantitative.matrix.Kaizen..that.analyses.6.These.additional. and.10.and. into.Figure.additional.a..analyses.causes.the.sections.also.of.of.team.the. with. requirements.chapters. several.also. In. improvement.shown. be. prioritized.a.to.the.This.in.formally.done.similar. should. customer.issues.completed..reports.In. are. root.performance.was.the.ways.be.that.Kaizen.identification.organization.9.which. customer.in.activities.which.teams.Kaizen.an.process. concepts.identify.critical.one.improve.deployed.a.is. reated...been.10.a.can.well.of. teams.complete. c ..can.these. productivity.the.by.process.one.communicate.incentive.project.customer.example.lack.its.research.project. business.operational. the.future.This.Recall.of.Figure.team.complaints.warranty. emphasized.anticipated. of.identify.6.of.and.next. identifying and prioritizing improement opportunities An.should.benefits.improvement.recorded.related.. prioritized.financial. translation.operational.information.showing.demonstrates.of.212  ◾  Lean Six Sigma for the Office In.the.10.6.improvement.be.(C&E). supplier.and.eliminate.Chapter.. provides.”.an.may.charters.can.advantage.activities.

methods.calculated. financial. more.several.designs. .meeting.eliminate.are.performance. Future Performance: TBD Anticipated Benefits: TBD or.common.to.in.specifications.Projects.listing.total.It.a.deployment..ranked.of.higher.process. to. anner.superfluous. identify. Summary Table.the.weighted.having..of.10.incorrect.be.requirements.poor.customer.having.prioritization.that.one. this can be taken from the projects charter.weighted.than..changes.in.those.lower..enables.6. charts.weighting.000.total. and other metrics.alternative. Problem Statement: All VOC information is not transmitted to product design or additional requirements are added that customers do not value or need.of.to.was.a.business..made.to.survey.suitable.causes. Figure 6.9 Kaizen project—new product marketing research.000 annually..customer.process.the.be.described. if historical information is known. or $2.for.shown.1.or.root.can.Chapter.a.a.a.Figure.6.5. This has increased the leadtime of new product releases from 100 to 200 days and increases development costs by 50%.The.presented. m .and. and graphs to show current performance baselines of operational. and.the.in. Root Causes: TBD Required Actions: TBD Current Performance: Insert metrics.adding.more.important.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.

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.organizational.project’s.2.included.it.meetings.those.were.example.budgets.Figure.control.an. root. relative.Questions”.. demonstrated.recommendations.related.and. in.of.chapter.control.“General.demonstrated.4.Typical.It.improving.process. modification. cycle.process.support.control.processes.vary.addition.between.10 prioritizing new product marketing research projects (similar to Figure 5. create. training. asset.of. operational. gain.their. such. issues. occur.section.balance.6.in. to.want.important..office.office.or.methods. investment.five. that.should..as.process.typical.1.six.and.yields.improvements.3.4. for. to..4.the. issues.to.consists.apply.related.process.their.. to.breakdowns.6.to.(SPC).process.process. the.concepts.particularly.result. a.prior.and. situations. valuation.sustainable.6.to.controls.may. are. the.. These.. Table. be.controls.some.as..they. types.that. inventory.various..This.questions..effectiveness.for. business.of. cause.we.in..work.common... case.In.improvement.include. as. Figures.audits. shown.mentioned.that..showed.goals.Table. in.in.project.functions.8.group.cost.forecasting. within. increase.and. improvements.of.consider.process..less. and.entitled. internal..such.6.These.instructions..a. a.process.listed.well.financial. use.may...was.processes. that.be. mentioned.model.These. types.discussed.where. analysis.additional.is.. using. teams.to.and.the.As.then.sustainability.22).1..to.related.and. processes. These. inventory.lower.poor. should..procedures.and.verbal.. management’s.and. of. Figure.used.inspection.was.testing.. how.other.with. Kaizen.Figure.6.6. process. issues..shown.As. example.tools. through.combination. analyses. and.effective.and.miscommunication.statistical.be. these.6. time. The.6.several.achieve.of.also.a. process.Figure.the.maintenance.in. and.operations..finance. used.specification.and.establishment.asking. .the.a. should.as.programs.

of.teams.van.. The..Kees.Press.Hee..Kaufman.Publishers.. and. redesigning.York:.Sebastopol.are.Process Improvement  ◾  215 issues.MIT.P.always. improvement..Schuster...Martin.Work systems and the methods. opportunities.numerous. this. James.result..... Daniel.methods.Richard.Inc.Bustard.Inc.. James...Saddle.Upper.der. measurement and management of work. Suggested reading Wil. Womack..2003.2002.by.Francisco:.an.River.Groover.Norris.through.New.. T.Prentice.2008.NJ:.Business process change—A manager’s guide to improving.organization..Nick.including.Hall.Simon.a.be.2000. Lamming.New. Lean thinking—Banish waste and create wealth in your organization.York:. Jones... 1996..York:.2000.eds...and. discussion.. and automating processes.Harmon.Hines. .... Mikell.... Dan..a.Rich.O’Reilly.2005.. P.Aalst.Workflow management models.Systems modeling for business process improvement.MA:.. is. methods. Peter.2007. Jones...and.assessments.Auerbach.van.... Cousins..Kawalek. that.CA:..Pearson-Prentice. and.Norwood...variety.As.Havey.. conclusion. Michael.W.Cambridge..House.should.operational.New.Media. from..Paul.San.Essential business modeling. Paul. and systems. improvement..Peter.Morgan.Hall.MA:.Artech.projects.&. David. process.Operational excellence—Using Lean Six Sigma to translate customer value through global supply chains.Value stream management.Mark.identifying.Kaizen.

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

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

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

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

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.own.group. team’s.that.projects.to.always.to.modern.is.to.videoconferencing.organization.example.organization. e-mails.general..reward. for.given.there.. include.communication.and.both.because. to.that.numerous.process.messages.pursuing.for.several..set..step.sustained. used.their.of.to. .change.. to. be.will. These.improvements.activities. proposed.that..in.each.next..organizations.implementation.change. key.and.priorities.is.necessary.that. a.tools.and. well-defined.a.of.elements.communication. the.project.the.team.manage.. have.should..the.are. the.be. countermeasure.be.person.and.systems.telephone.newsletters.. countermeasures.concept.formats.that.As.will.be.in..It.using.activity. key..Table.back. is.is.a.addition.with. should. Summary Changing.is. set.world.environment.stakeholders.local. of.analysis.discussed.chapter.are.is..be..there.several.calls.and.improvements.programs. business.on.elements.priorities.important.changing.In. Communication planning.using..there.to.a.by.at. can.methodology.of.structured.simple. increase. format..individuals.and. stakeholders.person.other.Figure.change.stakeholder.e-mails.important.the. to.based.implementation.and.facilitate.the.an.simple. used.has.which.can..necessary. to.time. improvement..process.communication.a.is.countermeasures. be. and.the. should.be..As.deployed.example.necessary.process.an.resources.interests.are.It.key.for.modified.who.stakeholder..this. time. rather.a.an.The.In.the.be.listed.will.an.are.probability.specific. to. correct.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.also..format.correlated.The.process.apparent..to.associated. organizational.ensure.important.8 7.8.routine.that.owner.elements. a.been.organization’s.competing.improvement. the.its.complicated.across.its.activities.the. over.methods.hand.on.key.should.obtain.are...in.1.7.initiatives.important.controls.consistent..this.project.that.The.also. Integral.step.and.a.are.listed.of.recognition.selected.impact. announce.These. with.In.methods.any. stakeholders.key.messages.the.process.should. that.the.. case.responsible..content.a.supported.7.their.straightforward.than.of.communicated.message. activities.On.tools.The.first. these..e-mail. every.and.competitive.the..designed.communicated.be.transition.work.within.These.the.the. sustain.to.based.similar.process.ensures. other.formats.been.process. communicate.

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

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

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

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

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

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

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

the.errors/100.at.. in. those. observations.this.being.that. subgroups.days.invoice.due. charts.s.of.can.range.quality.appear.error.than.were.that.than. an.limit.is..predefined.be.the.As.. used.data.less.as.the.12.as.interest.noted. individual.the.the.constant.size.deliveries.is.environments. evaluation.and.8.proportion.binomial.with.a.is.number.deviation. chart. the.100.an.be.is.Poisson..be..invoicing.Minitab®. A.91.illness. are.shows.an.that.were.situations.is. of.the. equal.size.charted.Note.proportion.concept.of. A.can.criterion.that.. of.example.It.event.late.individual-moving. chart.time.versus.or. subgroups. charts. example.these.number. either.sample.in.p-chart.This. the.Practical.The. sample.in.5.s/√n.because.a.on.this.other.X-bar.cycle.time.62.the.that.than.Figure.plot. equal.variation.200.be.calculation.be.an.is.also. invoicing. such..standard.subgrouped.It.collected.5.day. subgroup.errors.counts.used.invoices.upper..the.of.we.evaluated.. now..be.can..and.example..100.an.invoicing.monitor. can.n.unequal. np-chart.of.We.to.count.that.values).from.proportions.The. have.the.into.situation.the.as.8.fields.example.99.situations.distributed.used.a.deviation.percent.is.standard.individual.. control.also.errors.will. control.variable.. be. a.an.it.of.less.As.than.a.could.the.category.that.on.per.percentage.on. distribution.In.of.characteristic. Table.being.be.a.situations.of.or.proportion.number. unequal.could. Figure.8. limits.how.sample. of.be.modification. X-Bar.counts.field.criterion.66.size. as..the.if.control.percentages.In.percent.the.in.using..a.using.was.are. in.2.fail.who..control.this.data. Figure.is.14..the.are.as..X-bar.lost.is.using.per. wider.fields. and. only.5.invoices.of.number.we. individual-moving.variable.invoice.that.noted.measured.of.found.data.upper. in. subgroups.variation.of.is.work.days.as.a..count.is.fraction.which.this.as. be.in..c..for.using.shown.of.counts.invoices.software.are..8.and.is.invoices.as.calculated.examples.pass-or-fail. subgroup. control.quantify..later.used. can.revised.of.these.a.original.calculated.invoice.the. The.2..a.discuss.500.means.the.larger.an.In. the.days.12. sizes.sample.less.symmetrical. chart. an.data.monitored.is.where.the.The.8.100. of.or.a.variable.. limit.02.equal. statistic..of. .of.subgrouped. p-chart.error...is.in.and.sample.a.different.will.in..example. A.per.can..sample.per.errors.a.has.of.proportion.which.of.days.based. statistic.a.should..day. is.the.This..500. X-bar..there..invoices. predetermined.time.of.on.the.second.of. range.seen.which. and.invoices.of.falling.can. In.data.corresponding.equal. in.because.the.of.charted.pass.standard.to.cycle.a.values.variable.1.using..12.In. chart.per.being.each.each.c.200.would.office. shown.sizes.be.or.smaller.without. then.this.errors..times..count.fields.The.calculated.measured.of.be.be.successes.be.. or.can. words.of.example. to.form.skewed.the.than.using.situation.the.employees..the.to. in.created.to..of. an.found.having.the.would.control. range. are. invoices.Data.. with. often.hours.using.as.created..that.chapter.this..way.shows.would.an.day.should.is.It. but.12-day..count.as.chart.that.fields.(transformed.having.found.calculated.with.Implementing Solutions  ◾  247 of.the.statistics.or.original.errors.for. in.1.a. a.is.subgroups. having. contrast.is.of. than.c-chart..average.sample.look. size.error.either.200.include.there.because.Another.chart.shift.c-chart.are.when.As. week.distribution.monitor. the.the.every.cycle.c-chart.that.the.these..13.p-chart.a.normal.. control.100.a.Table.calculations.distribution.

86 Moving Range (Days) 4.705 _ X=9.5 0.1 Control charts for normally distributed ariables (continuous).62 12.789 LCL=0 X Bar-R Chart of Invoicing Cycle Time 12 Sample Mean (Days) UCL=12.910 11 13 15 17 LCL=7.863 Sample Range (Days) 6 4 2 0 1 3 5 7 9 Sample 11 13 15 17 LCL=0 _ R=3.0 1.0 1 6.020 11 10 9 8 1 3 5 7 9 Sample 8 UCL=7.844 LCL=5. .0 Individual Value (Days) UCL=14.0 10 19 28 37 46 Observation 55 64 73 82 UCL=5.741 Figure 8.248  ◾  Lean Six Sigma for the Office Individual Moving Range Chart of Cycle Time (Days) 15.5 10.0 7.5 5.11 _ X=9.5 3.0 1 10 19 28 37 46 Observation 55 64 73 82 __ MR=1.

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Process Name: Team: Requirements Measurement Method Automated timestamp Daily call summary report Testing/ Evaluation Method Call Center Procedure 35/ Revision 4 Work Procedure Reference Customer: Office Location: Date: Revision: Process Step/ Work Key Outputs Key Inputs Operation (X) (Y) Lower Target 5 seconds 15 seconds Upper NA FMEA Reference Call Center Incoming Calls Revision 2 260  ◾  Lean Six Sigma for the Office Customer calls into call center Time to answer call NA Figure 8.7 A generic quality control plan. .

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

25. 2.8 7 5.5 88.6 67.26.4 13 12.0 94.0 • How will • Will there be these changes future process be supported changes? by the team? 120 100 80 Count Pareto Chart of Root Causes for Late Delivery 100 80 60 40 20 ed c In or c re e Ca rr ie ue U 60 40 20 0 n 0 Root Causes st om er no tn ifi ot ti o nv ic ss ri nk w no Cu Count Percent Cum % 73 67.6 10 7.4 6 5.6 80. and 3 Figure 5. 5.262  ◾  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. and 5.7 94.6 16 14.6 100.1 9 6. Percent .2 100.0 Figure 8.8 Communicating the proposed changes to management.27 ge iv Ca nc Sc he d La te l de er ie s La rg o el ts iz e i ng M iss m at er ia ls O th er 180 160 140 120 100 80 60 40 20 0 Root Causes Count Major Impact = Demand Variation Major Impact = Lead-Time Variation C an l ce ed Sc or de r ch d he e ul an ge t La e ed liv er ie s lo La e rg ts iz e m M is sin g at er ia ls O th er Root Causes Large lot size Canceled order Missing materials Schedule change Other Late deliveries 140 120 100 Count Pareto Chart of Root Causes for Canceled Order 100 80 60 40 20 0 Percent Team Presentation Summary Panel 1 • What are the new process changes? Panel 2 • Who are the stakeholders and what do they have to do to support the changes? 80 60 40 20 0 er y e iss d s le du a In cc u t ra du le U ow n Root Causes La te l de iv e ch es e ch n nk Panel 3 Panel 4 M Count Percent Cum % 108 80.8 82.

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

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

80 30% D 1 1 0 0 1 1 1 1 0 1 0 1 1 1 1 1 1 1 1 15 $24.0 2.4 2.35 $1.1 0.4 5.9 2.1 4.4 0.0 3.8 1.6 2.take.8 1.4 $4.95 $19.6 0.9 4.8 2.process.1 4.9 19.R.3 0.70 $8.New.8 1..6 0.8 33.7 5.2 20.0 4.8 1.8 1.0 Setup Time 96% 94% 92% 90% 1 3 5 7 9 11 13 15 Process Step Number 17 19 88% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Process Step Number Yield (RTY) Top (3) Issues: $14.8 1.2 9.3 3.6 13.40 $10.9 0.8 1.York:.6 3.4 131.00 Total Cost by Process Step Total Cost ($) 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..to.5 36.4 3.7 1.their.25 $5.local.9 5.6 21.should.4 1..1997.8 1.05 $4.3 17.8 0.9 27.to..of.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 12.8 5.1 37.9 0.2 75.8 0.0 3..8 1.4 2.maintain.0 3.96 25% Total Cost C omments T arget to E liminate 3 3 3 2 4 4 3 3 3 4 2 3 2 3 3 3 3 4 2 4 61 1.8 4.status.7 0.0 0. Suggested reading Davis.7 2.70 $4.5 1.3 1.5 1. discussion.owner.6 2.4 13.0 7.McGraw-Hill.0 3.7 374.9 0.66 $2.metric.6 3.0 2.0 1.1 1.8 0.0 6.74 $5.00 $4.4 2.5 1.3 11.6 26.8 1.6 7.2 5% 0.mentioned.2 75.08 $0.60 1.6 0.corrective.actions.8 5.Bothe.8 1.5 0.5 1.6 16.27 Y es No No Y es No No No No No No Y es No Y es Y es No No Y es Y es No Y es 15 T arget to E liminate T arget to E liminate T arget to E liminate T arget to E liminate 1.4 4.7 0.9 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 $23.2 2.6 6.8 2.9 1.8 1.2 1. .appropriate.dashboards.4 4.00 $12. and.0 1.6 13.9 1.higher-level.0 0.0 10.6 100 % 15.9 1.9 2.performance.8 1.00 15% C 1 0 1 0 1 1 1 0 1 1 1 0 0 1 0 1 1 1 1 1 14 $30.5 $ 91.40 $13.25 $3.2 4.3 6.it.8 1.0 18.8 1.4 2.4 0.8 1.72 $27.0 14.6 7.5 3.6 2.the.60 $1.4 0.7 10.5 12.0 3.94 $23.8 36 20% 3.was.5 12.00 $6.Implementing Solutions  ◾  265 16.7 7.3 18.5 1.8 10% 1.0 8.8 1.4 99% 97% 95% 99% 97% 99% 98% 95% 93% 98% 99% 96% 97% 99% 94% 99% 97% 98% 92% 94% $27.5 1.1 0.03 % T otal Figure 8.7 0.8 1.48 $1.and.8 1.8 3.00 $20.team.2 0.0 30.8 1.2 20% 3.50 $5.30 $1.00 $2.4 1.2 0.metrics.5 1.6 7.2 2.monitor.2 4.0 7.6 6.1 3.3 6.0 2.8 1.4 5.77 $4.10 Creating metric dashboards (similar to Figure 5.0 3.6 2.8 4.6 0.1 14.2 0.00 $8.55 $7.3 0.1).15 $0.enable.that.Measuring process capability.1 18.6 1.00 $10.6 35% 5.8 1.0 4.a.00 $0.2 1.4 2.2 4.50 $4.2 7.8 10.7 0.work.4 3.3 6.

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

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

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.

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

.

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

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

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

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

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

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

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

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

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

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

Dev. addresses item and amounts are entered into the system or incorrectly converted by the system. Uniform Minimum = 8 Hours Maximum = 16 Hours Customer fails to properly receive an order resulting in receipt of damaged items.4). Failure to protect order from the environment. Failure to discover missing. Order Is Shipped to Customer Accounting 6. Order sent to customer. Customer places order. . Lognormal 48 Hours 3 Hours Order is lost or potions of the order are lost. Invoice Sent to Customer Order Is Closed Customer 1.5 Hours 4. Customer Places an Order for Several Products 5. Invoice Is Paid by Customer Operations 1. . 5.1 Accounts receiable simulation: distribution assumptions (similar to Figure 6. Invoice paid by customer. surplus or damaged items prior to shipment. Uniform Minimum = .Appendix 1: Crystal Ball® Software  ◾  289 Accounting-Receivables Distribution 2. 6. Invoice creation. Invoice is not created due to missing information or is created using inaccurate information. 2. Customer Receives Order 8. Invoice sent to wrong customer or delivery not verified by supplier. Order receipt. Order Checked for Accuracy Freight Carrier 4. Order accuracy check prior to shipment.5 Hours Std.25 Hours Maximum = .1 Hours Typical Issues Incorrect quantity or product is ordered. Accounting System Creates Invoice 7. Order processing. Invoice sent to customer. Normal 24 Hours 12 Hours 2 Hours 8. Distribution Normal Mean . Incorrect names. Exponential . Order Is Received in Distribution Center and Processed 3.5 Hours 7. Normal 8 Hours 4 Hours 3. failure to discover missing or surplus items and related issues. arrive damaged or late. Normal 4 Hours Figure A1.

. workflow’s.for.analysis.3. time..operation.average. was.systems.statistics..as.outside.. perspectives. right.of.It.on.. process.hours.Crystal.patterns.been.by.simulation.is.invoices.An.(ROI).because.analysis. yields.receivable..Figure.sending. team.the.on.higher.their.cycle. A.look.as.accounts.It.accounts. of.times..probability.some. various.using. Ball.the.compared.has. accounts.a.that. statistic. distributions. that.information.receivable.such. a.changing.were.of.customers. metrics.specification.hours. minimum.time.analyzed.Figure.the.well.~80.shown.frequency.the. be.1.accounts.A1.in. a .seen.a.values. important. the.that.around.statistical.can. This. This. events.that.2. implies.compared.only.customers.on.the.used.mean.for.to. shown.likely.each..a.customers.In. evaluate.team.cycle.to. the.cost.example.standardized.can.cycle.show.would.every.issues.decreased.would.process.time.each.sending.be.Kaizen.Figure.is..subprocess.A1.are. contrast.290  ◾  Lean Six Sigma for the Office breakdowns. process.the.normal. Crystal.120..process.in.. the.the. a. analyzed..an.for.enable. are.values.exponential.to.has.that.provides.and..subprocess.as.transformed. Kaizen.of.orders.to.the. very.respectfully.value..the.from.which.from.note.to.model.measured..events.the..simulation.by.by..in.useful.cycle.(VSM). this.Also. a.other.be.cycle. These.that.advantage.the.into.is. distributions.overall. done.between..analysis.that.a.Figure.cost-benefit.distributions.it. shows..cycle. process. This.in.range.the.shown.Also..summarized.team.by.as.example. a.of.notice.the.addition.is..contrast.simulation.of. associated. that.the.be..time.on.create.team.other.a.hours. skewed. effect..invoices.Notice..modeling.analysis.is.in.impact. static.we. high.this. a.A1.percent. assumptions.to.a. relative.workflow.aided.and.cycle.been.process.the.of. cycle. process.the.a.map.to.an.the.4.was.shapes. to.Kaizen.As.also....cycle.simulated.. time.In.ways. of. highly.for. to.distribution.reduce.times.can. This.operational.shown.total. process.process.Notice.operations.A1.an.Also.to..information.by.Notice.the.. in. cycle.receivable..invoices.for.is.can.and.~80.complicated. nalysis.of.simulated.a.total.also.. from.map. of.of.useful.calculated. some.an.~58..Kaizen.flow.evaluate.of.reduction.issues. at.fell.analysis.in.workflow.step.path.has.the.a.analysis.the.A1.Ball’s.would.in. cash..represents.The.eliminating.is.should. . are.of.the.scenarios. the.~140.in.time.of.be..be.cycle.calculated.example.set.example.40. metrics.is.these.using.their. and.would.to.team.As.with.a.sensitivity.in.various.stream.been.see.enables.operational. using. symmetrical.analysis.Ideally.each.to. software.process.working.times.also.cycle.when.a.quickly. impact. distributions.the. on.on.assumed.the.a.. have.subprocess.impact.represents. every.a.for.~98.critical.the.investment. Creating a Simulation model The.to.graph.distribution.. time.occurrence.quantitative.cycle.maximum.for.different.time.are. this.cycle.time.This.specification. operational. receivable.1.that. that.approach.summarized.their.distributions.return.additional. distribution.advantage.Figure.or.complete.value.sending.Simulation.that.analysis.the. very.be.percent.As.Kaizen.total.of.improvement.net.a. In.time.Ball. time..that.mean.to.Crystal.and.

Dev.00 2.00 3.00 0.00 10.00 48.00 48. Probability –10. Dev.00 Normal distribution with parameters: Figure A1.00 Normal distribution with parameters: Mean Std.00 2.00 4.00 54.00 Exponential (E8) Probability 39.00 42.00 12.00 6. Normal (E11) Normal distribution with parameters: Mean Std. Lognormal (F10) 8.00 45. Dev.00 Mean Std.30 0.70 0.00 10.00 4.50 10.10 0. www.00 16.00 14.00 8.00 57.00 9.00 60.00 6.00 10. Dev.Appendix 1: Crystal Ball® Software  ◾  291 Normal Exponential Probability Probability 0.00 .50 0.00 0.00 Normal distribution with parameters: Mean Std.00 12.60 0. 0.crystalball.00 13. 24.00 40.00 16.00 4.00 Exponential distribution with parameters: Lognormal distribution with parameters: Uniform Probability 8.2 Some Crystal Ball® software statistical distributions.00 18.80 –3. Probability 0.00 9.00 0.00 15.00 4.40 0.00 Rate 2.com –2. Dev.00 6.00 Mean Std.50 0.00 20.00 12.00 30.00 15.00 3.00 51.00 Probability Crystal Ball® software is a global business unit of Oracle® Corporation.00 8.00 Uniform distribution with parameters: Minimum Maximum Normal (E12) 8.20 0.00 11.00 50.

02 0. standard.management.a. of. time. ~12. This.which.time. www. predicted.53 0. value.have.cycle.cycle.of. process. within.can. improvements.in.06 Probability 0. a.14 58..this. Error 1..05 0. was.an.shipping.00 80. time...understanding.has.. improvement.~24.com Figure A1.is.orders. time.Kaizen.43 Crystal Ball® software is a global business unit of Oracle® Corporation. of. customers. then.metric..dynamic.of.average.subprocess. contributor.31 --13.to.01 0.1..15 0.45 80.simulation. stream. The.average.A.time.crystalball.a.process.00 60. overall.hours.workflow.00 70 60 50 40 30 20 10 0 Frequency Trials Mean Median Mode Standard Deviation Variance Skewness Kurtosis Coeff.Figure..Once.compared. subprocess. .with.A1. shown.business.sending.has..team. to.could..associated.000.useful.As. studied.would.process. recommended. methods.that. invoices. that.00 98. cycle.can.of.00 Hours 120.changing. cycle.customers.56 98.example. actual. for.with. workflow.simulation.00 40.without.91 139. is.a.cycle.3 Crystal Ball® software cycle time analysis. using.an.04 0. largest.07 3.invoices.00 100.actually.in. reductions. the. than.be.that.improvement.associated.Kaizen. patterns.and.the.the.the.04 0.an.process. Recall.hours.to.00 Target=80.and. less.the. in. various.customers.that. augmenting. scenarios. process.is.292  ◾  Lean Six Sigma for the Office Cycle Time 0. of Variability Minimum Maximum Range Width Mean Std.team.times. hours. be. advantage. sending. cycle.a.03 0.07 0.00 LSL=40. the. to.missed.49 182.in.reductions.case..fact. analyze.00 USL=120.48. deviation.by. versus. building.approves.identifying.team. analysis. a.for.

0 Operation 7. .1 1.0 40. Place Order 0.0 20. Process Order 4. Receive Order 8.com Figure A1. Pay Invoice 3. Receive Order 8. Check Order 1. Pay Invoice 3. Check Order 1.Appendix 1: Crystal Ball® Software  ◾  293 Percentage Time 7.0 2.0 60. Ship Order 5.1 4.8 4. Ship Order 5.0 100.0 Crystal Ball® software is a global business unit of Oracle® Corporation. Send Invoice 2.0 80.4 Crystal Ball® software sensitiity analysis. Send Invoice 2. Place Order Distribution Normal Normal Lognormal Uniform Normal Exponential Normal Percentage 80.crystalball.2 0.8 7. www. Process Order 4.

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Kaizen.Strategies Deployment.to.Three.and. Figure.Customer.and.identification—breaking.1.Kaizen? Strategic.3.Lean.Six.Steps Building.3.Business.6.financial.Do. Table.2. Generic.Events.is. Table.Deployment. Table.(VOC) Chapter 2 Figure.identification—process. Generic.1. Project. Project.1.2. Table.Levels.2.Process. Prioritizing. Table.a.1.1.Voice. Project.statements—profit-and-loss.2.1.Responsibilities Reducing.5.goals. What.6.2.Appendix 3: Figures and tables Chapter 1 Figure.Complexity How. Figure.Improvement Translating.projects.high-level.a. Table.1.in.sheet.system.1.example.3.alignment. How.down. Analytical.2.of.1. Figure.of.2. Figure. Ten.1.2.2.Deploy.statement.1..4. Table..5.the.Case.for.Definitions 299 .elements.2.Sigma. Figure.Kaizen.analysis.statements—balance.2.Compare? Comparing.charter.Roles.Metric.Examples Key. Table.1.7.2.Lean.System.4. Figure. Table.1. Figure.2. Table.of.financial.3.Project.the.Analysis Typical.1.important.

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Concepts.Event.8.quality.Figure.the.using.a.to.Control. Figure. Table.8.generic.Activities Chapter 9 Figure.8. Figure.proposed. Table.A1.cycle.Lean.simulation:.list.Ball®. Table. Incorporating. Reinforcing.a.Quality.3.Companion’s.Process.presentations.4.(FMEA).10.dashboards.analysis.2.world.charts.A2. Accounts.Control. Sharing. Table. Control.A2.and.Companion.8.5. Crystal.1.4).behaviors.9.analysis. .using.8.assumptions.receivable.4.effects.4.5.Appendix 3: Figures and Tables  ◾  303 Figure.2.A1. A.2.Tools Key.9. (similar.software.forms.3.8.Requirements Important.Six.improvement.Companion. Transferring. Figure.A1.plan. Follow-up.Control.across.A1.of.8.(similar.to. Creating.8.Ball®.Figure.Control Appendix 1 Figure.templates. Figure.8.tools.process.interpretation. Some.3. Companion.into.Create. Figure.Sigma.Plan.A2.Chart Present. Minitab®. Figure.and.Crystal. Figure.control.distributions.schedule.Quality.metric.7. Creating.1. Communicating.Control. Competency. Figure.mode.PowerPoint.to. Figure.the.management.1.distribution.9.Minitab®. Failure. Table.9.activity.new.time.statistical.by. Incorporating.1).variables.1. Control.knowledge.software.2.Ball®.Findings.migration.Organization Improvement.distributed.example.8.Quality.for. Figure.A2.7. Key.(counts). Figure.Improvement.project. Table.chart.8. Table. Figure.Quality.to.8.8.8. Table.Questions Control.8.Chart. Appendix 2 Figure.3.Overview How.software.analysis.to. Figure. Figure.8.6.changes.6.Charts Control. Crystal.8. Creating.Follow-Up.1.Poisson.from.8. Figure. Table. Measuring.6.9.4.sensitivity.5.3.

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creating.67 .. calculations.metrics. prioritizing.272 Communication.. 65–66 .74.71 Change. Lean.36 Cause-and-effect.22. opportunities.223–224 .180..Sigma.281 .reasons.procedures.Kaizen.164 .175 C-charts.48 Cash...77 .67 .range.222.Lean.236 Comparison.reducing..38 .38 Complexity.and.Lean.121 . for..28 ..... c-charts.workflow. Kaizen.organizational.64–66.initiative..stakeholder.orders.cultures.and..219–238.41 Cash..20 .(IT)..of... interpretation...technology..collection. key.analysis....(SMED). work....alignment. key.. seven..237 Communication. (pass/fail). lack.222 .case.analysis.91 .232 . overview.23.a. Kaizen. organizational.161 China.. organizational.time.stakeholders.245 ..expenditure.E). conflicting.and.233 .(CE).improvement.process.225 .support.and.245 ..setup.232 Change.flow... 215.and..11.282 ..255. readiness.61 Canceled.prioritizing. key..recognition.244.. Lean..and.process.normally..164 .. unnecessary.278 Continuous.concepts.or.172.studies.125 .binominally..activities.246 .233 Consultants.and..key. p-charts.and.software.team..improvement...219.274 .282 . project.. Kaizen..296 .stream. performance.210–211 Communication.(C. Kaizen. cultural.and.barriers. communication.222 ..30 .252 .variables.248 .247 .48–49 Competency..322  ◾  Index Business.. international.increased...46 Checklists..value-adding.and.and.. reducing.268 Case.160...of.. information. infrastructure.effective.variables..projects.to.map...64 Concurrent.235 .diagrams..235.212 .improvement..69 ....readiness...252 Change .28..business.226.charts..priorities.margin.statistical. control.231 ..transition.flow.model.Ball®.planning.distributed..of...system.in.250 .106 ..and.eliminating.245 C Call.236.of..234 ..workforce.184.26 .174 .(VSM)..236... strategy..operations. individual-moving. activities.223–224 Change.centers. data.295..and. scheduling..Six..162 Compensating.technology.process.gross.and. Minitab®.. (continuous). Crystal.resistance.114 Cluster.&.tools.249 .Six.charts.. cost-benefit.and.systems..and..rewards.236 .building.activities.softwear..37... process.223.product. processes..231 .45 Cashflow..distributed.282 .and.247..in.factors...33 Control. change..244–245 .219 Change.management.concepts..and.(IT).. bureaucracy..and.operations ..and..226 ..team..268.engineering.management..229–232 .. reduce...Sigma.events.219–222 .migration..227–228 .....172–174. corporate.overview.198 Capital.67..analysis. format.supplier.7 .improving.teams.change...in. for.and. avoiding.projects.165 .278 Channel.analysis.75 ..sampling.32 ..system.for. identifying.for.for. 6.and.. value. information.services.184 . process.and.249 ..20..workflows.products...96 ..for.271 Competitors.(BVA).and.to. control..173 ..208 Consensus-based. process.152 Common...charts. reducing..

231.282 .sustainability.291 .259 . 259 ..11..(COGS).290 .226..reporting.222 .226. new. modification.177–181 .satisfaction.245 .proofing.92.down..279 .tools.250–251.242–243. and.. cause-and-effect.....194...239. cycle..258 .solutions.282.improving. elimination.of.263.demand.analysis. purchase..of.verbal..stakeholder..... 200. 263–264 ..impact.of.programs. value..of.197.141–184.62 .plan.events.55 Crystal.Index  ◾  323 ..38 Customers.levels.77 .274.Ball®.types... key... satisfaction.289.and.245.map.of...214. variation.systems.times.&.258 ..290 .71...38 Cycle.tools..level.245 . for.design. inventory.258.255 .metrics..analysis.87 .250 .285–294 .and. job.232 .or.of.73.of.. 258 .64 Cost. new..43.(VSM)..290–292 . sensitivity.audits..analysis. process.limits.Poisson. key.241..analysis. modification. box.278 .tools.. maintenance.a.37 Control. interviewing.layouts. Kaizen......253 .219.147 Critical-to-quality. control.of.goods.characteristics.22.. implementation. changing.222 .mode.293 .and.work.new..of.241 Control.patterns...286.process..portions..and.methods.process.and.products. at. brown-paper...analysis.charts..and.164 .meetings.149–150 .designs.of...and. steps.227–228. information.292 .190 Customer-facing.(IT).211. equipment..team.. types.31 .251 . transfer.and.166 Cost-benefit.199 . new.120. mistake.setting. control. supplier.175–176 ..(FMEA).. group...and..(CTQ). r-charts.analysis.259 .82...259 Core.up.operations.for. process..258 .188 .and.259 . Lean.variables.and.167 .inspection.root.cause. histogram.. 288 Customer.process. X-bar.deliveries.223.technology.. statistical... requirements.245 Control.(C.map.visual... 289 Countermeasures..and.. specialized.analysis.263 .27 Critical-to-quality. building.sold.effects. long.reporting..... failure.. training..exercise..288.136.distributions... business.and. cycle..259 .and.other...288 .259 ....of.impact.shadowing.137 ..4th..281 .250 Control.graph...solutions.and...288 .... control.. effectiveness...and..data. 255 ..services. written.259 .tools.migration.(CTQ)..229 Cost.40 . root.calculating.233 ..and.87 d Data.organizational.46.analysis. implementing...stream.261 .of.collection.41.and.. implementing...operational.analysis.cause—late.258 .38 Customer.testing.times. requirements..diagrams.analysis.plot.of...of.148.242 ..165–166 .instructions...software..chart.(VSM).249 .. reducing.194–196 ...245 ..240 .5S....and.stream. structures.147 ..financial. high.the.. errors..questions.procedures.172–174 .avoidance.and. Kaizen.time.259 .or.286.285.modified. five-why.reduction....285.64 Core.distributed.(huddles).flow. analysis.and. sensitivity.methods.and.36.259 .236–237.228..287.batches..systems.. complaints.improvement.169 .296 .value.46 Customer.and.....information. value..48..286 .245 .E). Lean.

.Six.diagram..and..of.for. value.89 Error.percentages.36 Exception.reduction.continuous..116..115 Finance.11 Event. template.258 .191 Failure..in.168 .change.119 Financial..Manufacturing.of..chart. spreadsheets.....255–257.288 Diversity.reports.project.10–16.of......organizational.low.151...rate...195 Error..94 .288 ..196 Employee.288 ..series....288 . variation.standardization.collection. targets.221..94–95.time.. operations... level.. risk.and.responsibilities. process..154 .. time.296 .. methodology.93 .priority.reports.(DFSS). prioritizing.9 E-mail..analysis.257 .methods.leaders.data. purchasing.36 F Facilitators.analysis....analysis.turnover. methods.. control...value.269 Downtime.90 .and. 135 Drumbeat...and.prevention.(VSM).(DMAIC).151–159 .people).......234 Deployment.290 .... level.89..256 Failure.137.295 .160–162 .121.67.14 Deployment.characterization.effects..failure.measure.98..55.strategies.66 Design.12 .development.plot.258 Failure.200 Finance.163 .methods.champion.131–135 .and.of.analyze..222 . aligned.rates. templates.improve...13 Design.analysis..37 e Economic...... bottom-up....and.105....130 Event.66 Design..facilitation.rating.66 Design.295 Dell.services.roles..46 Design.(DFM).added..229. exponential...for..process.and.123 Equipment .106.product..and..demand. common.104...191 Expense.pricing..in..and.stream..89..222 .12 ..high. in....modes.(EVA).events...296 Defects.. Pareto..integration...service.(RPN). variation.178.operations.151 ..67 . methods.conditions.tools.minimizing..(FMEA).198...of.154 .132–133 .14..Sigma.Sigma....12.and..130 Fact-based.19..map...15. 67 Design.. classifying.errors.31 Deployment.264 ..department.158 .graph..mode.117..planner.facilitator.12.mode.200 Finance...impact.258 Failure.31 Excel.210 .methods...and. tools..52.15 Everyday.40 Deployment.269 Distributions.application.or..19 Enterprise. normal.11. process.61 Define. uniform.143 Data.104 Employee.causes. (FMEA)..simplification. example.209 Empowerment.types.points..40.(DFSS). hierarchical..language.Six.. process. methods.170 .25. Kaizen.280 Deployment..278 Entitlement.170–171 . top-down. scatter. standardized.31 ..mapping—SIPOC.. spaghetti.66.255.for.(EAI).reducing.of .execution. patterns.95 ..324  ◾  Index .139 ..280 Deployment..90 .and. 240....12.options..5.66 Demand .effects.87.training..(equipment.loading.222 English.16.

activities.143.219–276 . 41–42 Goodness-of-fit.defect.150 . identifying.275 Global.to. Kaizen.of.risks.improvement.positive.125 . alignment. economic..level...285 .19 Hiring.89 Hindi. statements..233 ..process..improvement.charts).setting..projects.127.....113.167–168.43. identifying..122.statements—profit-and-loss.53 Improvement.296 Generic.a...analyzing.test. building. cultural.improvement.166.80–81.23 .55..165–166.financial.map.3–110. self-discipline.and...process.behaviors.80 .and.174 Improvement..and.53 Financial... process.methods.opportunities..81.. Kaizen...metrics.show.. process.22....29..recognition...22 .team..209.90 ..projects.of.prioritizing..230 High.. (for..risks.and. process...change. 247.team..233 ....32 Global.supply....280 Financial.outsourcing.statements—balance. changing..232..charts... order.in...activities. reinforcing.solutions..282 .....282 .reporting. through.31.261.Index  ◾  325 Financial.teams.teams. change.quality.financial.234 .systems. steps.14 h Harvard...46.115 .process...(sorting.32 Information...32.charts.24 Financial.service.methodologies.48.(5S).follow-up.negative.chains. supplier.234 .impact.of.risks.high-level.(I-MR..workflows. organizational.23 .recommendations.66 Implementation..209 .range.165 Follow-up.224 ......implementing..46 Financial. processes..breakdowns.flow..39 High.silos”.Kaizen.208–209.solutions).36 Financial..breakdowns.190 g Gantt.209 Histogram.209 .167..risks.233 . implementation. regulatory.233 .Business. process.in.and. reward.and.184.54 Generic..235.201.....233 Implementing..assessments.and.. 184..Review.38–39.operational.case..factors.events.195. sustaining).167–168.. sorting.and.82 ..system.analysis.business.risks.(HR).. customer..219–238 .belt.using..253 Information..264 .. scheduling.233 .road.change.287 Graphics.82 Five-why.25 .. project.53 Global.209 .89.173.detection.225.elimination.193 Green.. skew..167 ....operational.57. 145. standardization.208. identifying.202 Five-S..172..168 Human. worksheet.221 India.systems..272 i Immediate..278 .workflow.statements...for...language..202.objectives.and.and.8.and.... technological.261–262 “Functional.267–276 Improvement.200–201.and.event.235.32 Improvement..resources.improvement..212 .workflows.standardizing...in..examples...shining.new...and..behaviors.reports.19 Goals..214 Financial.and.137.down..191 ..236 .metrics.233 . process... 258.expert..48 Financial.263 Improvement...282 Incentives..risks...114 Individual-moving.forecasting...sheet.278 .activities.breaking.

121 .139–140.105 Infrastructure.92 Job. first.quality.137 .flow.82–83 .165.and..a.24.of.37 .142 .134.operational.5S.. problem..24.and. efficiency.cycle.level.reasons... third.tasks. level..40.196 . philosophy.level..methods.... work.27 Internal. total.180 . 76–98 ...cycle.188 Internal.management..124.227 . as..prioritized...turns.135.waste. analysis.major. data.setup... apply.flow.198 . communication....203 Invoicing.work. strategies.material. activities.105.326  ◾  Index Information.80.improvement.time..data.eliminate.of. root..177 Inventory.37 Invoice.179 .external.(IT)...273 .analysis..38 . canceled..103..7 Kaizen..84 .data.stability.80–81 . improvements. analysis.and.(ISO)..239 .collection.to.Standards..116 .event. mistake.standardized.sizes. conducting.material.and.and. waste...change.. process.. asset.data.234.ration..77 ..14.183 Inventory.89 .90–91 .methods.. checklist.Internet.124.(JIT)..letter...and..language..mistake-proofing. ISO..collection.59 ..177–181..26 .159.15.demand.182 Inventory.reduction.implementing.125 .times.157 ...on..seven.and... control.59. reorganize.case.of.204 .158 Job. ISO..and.233...designs.. change.tools.175–176.level.candidates. building..operations.87–88 .240 Internet...payment.operations. analyze..77 ..92 International..Institute.30.types.business. link..111–218.and... 277–279 ... reduction.changes.247. waste. reduce.prescreening.and. information.. 120..for.136 ...data..22.the... apply.125...projects.in.131.service.239 .237.125 Japanese...work.176 Just..develop. reduce...specifications.198 ... process....272 Internal..4.92–93 Just-in-time.60 .105 . standardization..networks.251 J Japan.269 Inventory..235 .66 Interorganizational.preventive...process.96–98 . balanced.191 .methods. major.94.78–79 .84–86 .128 .53 ..method. worksheet..orders..of.and.process.4–7 .9000. obsolete.investment. 275.. 5S.and..time.112.time.. implementing.of.demand..systems. high.shadowing.platforms.times.137 .97.investment..(JIT)..19–20.(Ys).195 .of.. deployment. prioritizing.76 ..189 .137 .operational.lot.76 K Kaizen..systems..improving.. excess...32 .181 ..4–5.vs.278–281 ...and.178 .technology.9001.and.and...shadowing.physical.and. systems.maintenance.. communication.improvement.136 .268 Initiatives.workflows.60.analysis. stable...19 Job.... defining.high .proofing.77.in.182 ..requirements.analyzing.94–95 .239 .configurations.analysis.improvement..239 .60 Inventory. operational.31 . ISO. continuous... service.222. supplier. second. balance.utilization.of.(SMED).135.and..175 .....9004...cause.for.177 .

..277 .and.63 Kaizen.root.(VOC).risks. support.process.transition.Index  ◾  327 data.233 .259 roles....189.114 .charters.196–198 scheduling..122 .process.and..personnel.and.134–135.Six...22. ..for.117.112 recommendations.... follow-up.of.analysis. . operational. 139 key.and.training.155 process.180 empowerment. project.163 Kaizen.221 consultation.128 . objectives.26 Lean.160. . .deployment.teams.agenda..best-in-class. .improvements.231 Lean.182.and..of..responsibilities.267–268 . 207–209 project..and.supply.and.222 transferring....115 ..139.229. worksheet. goals..charters.222 . process. .examples.risks.15 .operations. . .global..with.and..stakeholder.22...118 training.causes..conferencing.chains. alignment...components.and..137 measurement.maps.and.stream.workflows.. 121.of.118.and.alignment.and.equipment..224 communication..231 .Kaizen.workflow.and.220 analysis..32. video.supply.of. sponsors.. evaluating. planning....solutions. communication.change. . ..12. strategic. . .solutions.. ..system.and... . project.129 . value.115–116..of.277 .of. . . project. ..213 . .115.three. .36..116. process..goals.and... and. .286 control.205.235.114 ..and..with.. improvement.and.123.. ..for.5 Kaizen.objectives.promoter.identification.122 ..117.and. .220.of. . 269–270 .of.charters.130 .and.229 process.124 .workflows.23...and.128.event......cause...127.activities..and.for..and.analysis. . supplies.causes....examples. obtaining.of.analysis.151.8..280 project.the.Sigma. strategies.financial.136 analysis..and.215 process.with.129–130. kickoff.255 support.233 . organize...research..and.data.in.275 .. implementing.questions.readiness.product.126. facilities.global.leader. .objectives.229..workflows.goals.improvement.190.projects.. .organizational.with..274 .277 .26.36.118. ...organizational.improvement.activities...team.277 ..202–203.tools.22 ...25.. 131–135.(FMEA). ..116 rapid. voice..and.240 . .. obtaining.and. prioritized.224 ..score..and.. .events..225 .for.process. . ..marketing.26.185 change.282 . ..50 . .127 roles.233 six.members.analysis.of.129 .of.measurement.254 net.and.components..breakdowns.114 . ..124 .train.team.activities...and. project.111–112.259 .118 .177...layouts..and.and.analysis..263 .audio.analysis. . deployment. new. preparation.128 ..127 root. and.responsibilities.and.. 234 .126..and.113–124. objectives..local.prioritizing..195 data. opportunities...223.119–123.process.improvement.. conditions.and..change.and.and..experts. alignment.for.effects...232 evaluation.126 .steps.200.and...258 failure.of.collection.. Kaizen..and.personnel. .. strategic..(NPS)...methodologies. .29.256 general. 269 process.. infrastructure. . resistance..234 implementing. 141.116 ..mode.characterization.221.. rapid..117.team. .187 identifying.55 .collection..138 .and.alignment.119–120.212 implementation.212 Kaizen. schedule.. activities. .54.team....129 failure.control.131.development.across.chains.organizational. international..42.30 Lean....across.138 facilitation...191 improvement.and.of.153.improvement. .customer.184 decision-making. facilitating.

opportunities..242 Key.42.295 ..process... Step.deliveries.metrics..31 ...process.32.financial.of.69.operations.240 . metrics.and.for.of.global. common.methods.of.45..methods.296 . operational.Kaizen.275 .and.23 l Language.definitions.. performance..needs.expert..240 .184 ..7.128...... 270 .135 Leading Change by..98. financial. impact. changing.70.. basic.14 Lean. behaviors.change.strategies.55 .96..level.160.57 .. deployment.102 .(listed)..68.236 .. product..variables.and. prioritizing. satisfaction.workflow.184 Lead.the.281 ..... communication.plan..workflows..and.team.input..24.stakeholders...design. operational.71..236 .initiatives. operational.30.112 ...of.metrics.78 Korea.66 .. initiatives.229–232...cultural.Six...P.137...62 .26. methodologies. examples.61..64 .205 .4 .143 . organizational.time.objectives..and.impact...3:.. tools.189.5 Lean..of.and...46 ..customer. supplier.22–25.processes.. activities.and.49 Key. excitement..improvement.24 .328  ◾  Index Kaizen.and..P.differences.198 .system.23 .Implement.of..258 . projects.and.process. voice.across.production.61 Lean..and.and.discussing.24 .solutions.John..and. process.(SMED)..Six.of.180.needs.36 .(DFSS).280 Lean. procurement.63...57 .90 Lean.44..82..191.19 Late.......common. performance. process.projects.and.. deployment.46 ..Design.11 Lean....19 Kotter. 18 .needs.metrics.metric.focus..274.. diverse....67 ...Sigma.philosophy.122 . initiatives...improvement.224 .changes.and. inventory.reasons..event.of.analysis. process..55 ..136 ..231 ..237.time.and..5S.137 .level.8.269.(VOC).268 Kobayashi.initiatives.230..and..and.202 .....(KPOVs).46 .105 Lean Six Sigma..191 .242 Key... six.align.269 Lean.networks...222 .for.. improvements..conducting..chains.. process.of..conduct..233.195...25 Lean.analysis..282 Lean. data.39–40 Lean.of..31.(HR).125....Sigma.masters.improvement. process.John.2:.(KPIVs). Step. culture.41 Lean..14 Lean.language.4 .280 ...analysis.variables.....of.methods. concepts.138 Lean.Six.output.177 ...274 Lean.and.62 Kano.19..46 . tools.101 Kano.45 Lean.. analysis.267.46–49..of. Kaizen. sales.62 Key.. human..Sigma.event.event. control.processes..supply...77.125 Korean.of.viewpoints. implementing.46 .31 .23 .222.100.Kaizen. marketing.change.resources.Lean.1:. cards.. Step. Lean.Dr.10 .improvement.and.32 .46 .223.200 ...events.workflow. major. rapid...Kotter.32.characteristics..the.90 ..90.collection.needs... concepts. integrated..setup.. reducing..46 .complexity.approach.and.assessment.. process.220 ..268.deployment.231 ..metrics.29 .129 .62 .evaluating.concepts.the..5..136 .and. reduce.tools..268...44.28 Kanban..

demand. evaluating.charters. low.94 Lean..event.Sigma. service.279 .and..and.. planning.metrics.a..Kaizen.controls.41 ..system.100 . strategic.82–83..Stream.work.32..office.102 .46 .key... manufacturing.and.. team..designs.an.process. Lean. Lean..74–75 . Kaizen.57–110.21 Lean.61.unnecessary.(JIT). implementation.robust.Kaizen. ten.the.29 ..277 .Lean. performance...capacity.69 . continuous.map.methods.event. supplier.and.21.workshops.and.. technology.and. four. Lean..16. elements. 24 .69 .Just.to. ten..and.cause.14 Maintenance.complexity..teams.32 .Just.Teams...(Voice. high...product......and.14.30.workshops). problem-solving.38 .138 .212 .the.of.143 Lean.12.operational.of.Sigma.metrics.35 Leanness.cycle. deploy... continually.measurements.46 .36–38 Lean....tools.39 .. Customer).process.(VOC)... reducing.24.champion.data.26 .30 .alignment..22 .112. project..assessment. compensating.78.98–99 .. reduce.111 .scheduling. deployment.and.and. benefits.initiative.. create.Six.team.and.67–68....case.measurements. business.event..support.of.and.46 .41 ..complexity.unnecessary.and...and..process.of.15 ..of.197 ..system.(middle.and.Sigma. reduce. 63.46 ..of.70–73 .for.control.38 .systems. simplification.information.(VA).55 .of.(leadership.274 Lot.31 .38 ..68 Lean. executive.visual.53. management.and.29 .Index  ◾  329 .elements.Kanban..98 m Maintenance.29 . implement.of. voice..Sigma.workflows..96–98.Sigma..29.chains.of.systems..metrics.105.operations..41.systems.methods. low..internal.38 .of.26.teams.value-adding.flow.system.30 .and. in.16 ..Teams.and. rapid.and.tasks.customer..279 Lean.39. implement.50 .of.33 ..32 .operations.97 . global..85. and)....37.and. value.work..business.. communication.67–68 ..38 .complexity.of.materials. eliminate.27 .time.training.220 .elements.100 Lean... project...46 .64 .the.26–27 Lean.32 .281 Lean.. create..teams..97 . project. financial.cost.23 .training.chain.Maps.Six.55. project.technologies...variation.24. alignment.logs.-.Six.76–98 ..metrics.. plan.sizes. analysis..142.3–4.in.process..system. building. low.pull.26–32 .36 .222 ..tools.29 Lean. eliminate.and..and. strategies...the. 102–104 .and.39 .high-level. tools. problem-solving. performance.of. continuously.teams.environment..Sigma.106–110 . high..analysis..29 ..Six.29 ...14.Time.32 .33 . understand.Six.identification.implementing.Six.product.. teams.22..83 Local.and...of.58 .Six.methods.Basics.31 ..64–66 .change.28 .and.steps..277–278 .Value.pull.Sigma..planning..content. supply.key..process.supplier. projects.operations.networks.TIme..technologies.37 Link.process.161 .networks.conducting.operational..improvement. systems.. root..process.update... flow.117 .update.61–63 Lean..Sigma.(VSMs).improvement.in.(VSM)..change. visual.supply.methods. mixed-model.elements...(JIT).VOC.and.improvement. develop.Six...and..to. implement.135 Major.reducing..16 .schedule.and.the.in..stream..deployment..100–101 .selection.systems.yields.process.metrics.

operational.61 Mitigation..295 .177 . accuracy. 281 McDonald’s.. buffer...205 ..19 Market. eliminating.37 .research.. 295–298 Misalignment.66..Quality.complexity.247.changes... key..296 ..and.proofing.and.and..Six.295..dashboards.. define.methods.57...254 .team. simplification.84. process..29.system.control..issues.analysis.254 .296 .and....36 Metrics..data. Kaizen.and...280 . Kaizen. market.tools..chart.264.254 .product.products.156–157 .features.64....characterization.204 Marketing..255 .process.258 .example.. process. Pareto. value.207..plans.improvements...schedule.teams.263 Metrics . design.and..129 .charts..Inc.award.283 ..2...Six. 198...37.187 .and.205 Materials..285 .29–30 .procedures...softwear...230 New...reinforcing....296 .229 .map.modeling.255 .analysis. Kaizen.. analyzing.and. resolution.products .32 ..operations. financial.. pull.46 Market.data.153–154.265 .160 . balancing.language.. Companion.297 Minitab®.196 Nonrandom..120 .job. 253..scheduling.(NVA).flow.74–75..185 Mandarin.statistical..Statistical.and.level.. voice. Lean..206. inventory. functional..92. error.increasing..222 Mistake-proofing.Sigma..231 Mixed-model.84–85 .reporting.230.168 .91 .workflows.87–88 ..295–297.191.....and.system.2).higher..using.system.analysts.examples.249 .45 . process.and.patterns. project.66 ..254 ..and.of.189–190 ..chain.Baldridge.mapping.example.Sigma...53 Malcolm.inventories.189 n Net..254..and.and.57.testing.44.research.270 New.Baldridge..98..Quality.components.(VOC).66 Mistakes.. stability. linearity. strategy..analysis.variation.. reproducibility.255 .99..stream.85 Mathematical.and. method..254..and.Minitab..codes..system.improvement. processes.and. repeatability. development. balance.195...254 Metric.11 ...127..behaviors..Six..296 Minitab®....173...team..Software.21 . Lean.. methods..times. control.and.295 Minitab®.customer...268 .research.shadowing.of.201 Mistake.232 .and.162.(Appendix..29 Minitab.142.chart..and.penetration...(NPS).score.of..criteria.254.and.and.strategies.137 .297 .66..278 . standardization. Kaizen.stakeholder. reduce.Sigma...295 .190 Miscommunication. control..135.by.87 . Companion.204–205..error.254 Measurement.of.20. policies.material.....7.Quality.cycle..106 .263.a.event.flow.89.46 .chart..supply.278 . process.36 .214 New.240 Management. Pareto.(VSM).the. Lean.191..project..of...7 .207 . prioritizing.of.. creating.scheduling. operational...and..205–207.. Lean.statistical.38.102 Measurement.alignment..66 . process. creating.330  ◾  Index Major.reduction..toolsets.Companion.253 Non-value-adding.265.66 .240 Malcolm..28 .and.23... common.296 Minitab®. 176–177 .promoter. process.systems...softwear...102 ...

process.145. analysis...61 Office.182.61 Np-charts.time.247 Performance. scrap.within.customer.cost.. identifying. setup..283 Organizational.40 ..projects.(equipment.(CTD).investment.269 Operational...cultures.233.metrics.63 ..Martin...event....expenses..(OR)..55 .goals. Lean.performance..69 .common.269 p Packaging..operation...and. simplifying. dysfunctional.content.269.data.134 Operational..269.128 Operational.71 ..55 Organizational.and.floor.and. minute).. implementing. Lean.(VSM).methods.incorrect.and..232 . transportation..the.70 .69 .... standardizing.69 . effective.19. inventory..W.or.percentages..272 Organizational.32 Office...Index  ◾  331 .financial.63 .25. 69 Performance.168..24.chart.stability...(units.safety.per.143. time.collecting.lines.objectives..stream....154 . cultural.269 .to.barriers.measurements.38–39 .120 Operational.195 Outliers.. James. rework. critical-to-cost.31 ... downtime...system.(VOC).value-adding.61 .. voice.and..254 .277 .themes. mistake.from. value.stream...70 .chain.44 Operational.discussing..168 .282 .Excellence.chains.270 .221 Organizational.themes.. repetition..and.Corporaton.147 .training..in .31.224 Operational Excellence—Translating Customer Value through Global Supply Chains.information..new.improvement.productivity.71.to.63 .60 Office.space..and...environment.119 Operational.services. global. Kaizen.26 Operating.percentages.of.themes.map.times..or.behaviors.37 Operations .18. roles.(VSM).rate. about..activities.40 Operational..11. critical.event.by.products.268 .map.184.environments.39 .cycle..team..and. limited.defects.9 Organizations..the.57..168 P-charts.of.task...office. measurement.69 ..29 .information.of. 70 .percentages.11.....workflow...supply.69 . reporting.responsibilities.change.reports.61 .184. creating.. prioritizing..structures. Kaizen.58 o Obsolescence..(CTQ).of.supply.149–150 .....169. value.113 .286 Organizational.and.267 ..jobs..274...of. critical-to-quality.work.throughput. allocated.277 .proofing.change ..systems.differences..84 Oracle®.. percentage. Kaizen.measurements.mistakes.19.for.. brown-paper.232 Organizational.. critical-to-delivery..55 Operational. reinforcing..exercise.253...research..247 Organizational....82 Pareto.63 ...change..processes.64 Overproduction.. mathematical.breakdowns.180..63 .of...(CTS).145 Operational.themes.analysis.69 .29 Performance.and..or.environments.(VA).268..gaps.. sending. production.43 . rapid.188 Outsourcing.60 .production.(CTC).workflows.39..31 Operations.assessments.... people).required..of.41 Operational.53..288 Outsourcing.55 Performance.metrics ..

layouts..240 .253 Potential.258 PowerPoint.235 Process.189 .. office. training.and.239..to.(floor..lines.inputs. training.269–273 . 199–211 .60 . common.147...control. scheduling.283 .227 .191.79 Pilot.and..standardization.analysis.......complexity.102..analysis.event. reducing.area. employee.155 Process.worksheet..119 ..7 Process...effects..eliminating.185.mode.236 .10 .153 Process.196.57 ... root.tool.analysis..study.control.of.layouts.57 .worksheet.. organizational.failure.using..223 .121.224 Process.of....... overproduction.243 .281 Process.operations.. Kaizen. obtaining.279 . strategies.30..and. methodologies. simple.141 .190. mistake....levels.teams.process..240 . work..197 .information.136 Probability.281 Process.60.distribution.process.breakdowns.tools.200 Process..technologies.Excellence..222 . control.prioritizing. impact.10 Process. continual.57 .242 Process. common...241 .audits.. 233..287.240 Process....global.improvement.teams..237 Process..222 .32.194.change....242.223.process....202.243 ..and.support.243 .training..workflows.264 .242..189.36 Poisson... measuring.28 Process...243 .sustainability.240..of.168.288.290 Process .82 .workflows.developing.196 Process.improvement.122 .strategies.proofing.. Lean.240..supply.controls.151..tools.30 Process.systems. opportunities. collecting.examples.methods..changes...processes.tasks.work...training.mapping.cause.and..improvements. failure.and..owner..mapping—SIPOC...242 ....updating.waste . changing.common.analysis..characteristics.required..questions..and.261 Pricing. 195–218.137 .(SPC).185–193 ..analysis...(FMEA). implementing.243 ..119 Process.analysis...audit.findings.78–79. part-time..configurations.analysis... examples.226.104 Process.274 Process.procedures).196–198 Process.operations.... key...242 .. implementing.. across.188–189.analysis..methods.activities.57 .236.organization..effect.256 .185.213 .32 .for... full-time....186.barriers.and..documentation.22.simplifications.241 Process.135 Process. cost-benefit.295 Present. root.distribution.reducing..57 Process.process.148.standardization..data.245 Process. analytic.. implementation.141.experts .163 Process..and.149. lack.153.inspection..procedures. poor.of.247. excess.264 Process.243 . poor.outputs.barriers.process.53.improvement.137 .44 Process..160–162 Process.Lean.scheduling.185–193.effectiveness.46 Priorities. organizational.design.cause..163. organizational. organizational.walkthrough.of.44..263 .332  ◾  Index Physical. and.of.to..243 . floor.on. elimination..... 194–196 . variable...inventory..151–159 Process... reorganizing. audit.demand.. statistical.237 .122 Process.improvement.22 Process...152...change..224 .approach.and.. identifying.38 Prioritized..231 ...changes.procedures.to.225.of.variation..characterization.optimizing..and..234. 5S.conflicting.212 ..of.workflow.control...82 Process.78 .57 .and.7...271 .....levels.222 ..243 Process. lack.

identification. prioritizing.50.153 ...and.process.57.market.11.proofing...60 .identification.21 . project. information. accounts.154 .. Kaizen.222 .90 ..24 .data.. waste..24 .available..227..time.. project.191 .stream.. .and..38 .. breaking..systems.goals. implementing.135 . analyzing. Lean.220.forecasting.36 ..57.processing.59 .down.. cost-benefit.and.50.(VSM).190 Production.marketing.55 . performance. metrics.workflows.models.. manufacturing. hiring...stream.200 Processes . improving..43 .events.workflows.performance.15...metrics.... analysis..142 . process. simulation. control.of...and.research.19.261 Project.40 ...145 Project. financial. process.processes..employees..of.motion.21 ..of. Lean..flow.or. unnecessary. standardization. Lean.57..222 Project.144 Process. financial.example.proofing..55 .systems..52 Project....50 .and...27 .150 Product...41–42 . communication.69 ..defects.42 .119 .53 .plan.51.product.teams.projects. common. product. changing.. objectives.setup.research.supply..identification.and. auditing.analysis..down.and.forms.and.and.identification.Kaizen.receivable.technologies..and.rationalization.controls.35–56.operation.37.43 ..and. mistake.40 .and. outsourcing.41....events..for. .14.36.. accounts.20 .and.219.. operational.high-level.map.119 .alignment.50 .solutions.operations.workflow.. new.. operations.statement..149 .30 . Excel-based.and. preparation. financial.24.mistake...materials.173 ..84 .116 .227 ..197.115 Product..42 .changes.management... Minitab®. prioritizing.. quantifiable.assessment.examples.18 Product. quantification...235 . value..52 .and.117 .8.every.202–203 .199–211 .control.work..product.model... example.and.(SMED)..61 seven..188. pull.57 unnecessary...281 Processing.by.complexity.chain.59 Profit-and-loss.129 ..and...at. example.charts...18–21 Processes.information.material..and.and..proofing .45. financial..47 Project. machines.and..transport.process...charters ..service.or.(P/L).137 ..benefits. process.200..113 .team.. Lean.analysis.and. selecting.deployment.190 .201 .(VSM)...of. transfer..characterization.statistical.. value.296 . three-dimensional.analysis.119 .Index  ◾  333 . Lean.high-level.map.process.the.goals.36 .assessment. office. collect.business.. goals.60 Process.measurements. waiting.. new.design. new..yields. reduce..classics.supply.9 ...metrics..product. balance.and.142 . waiting.72.forecasting..32 . simplifying.279.environments.43 .and..151..capacity.common. supplier.and.60 Procurement.233 .of.30 .of...characterization.redesign.57 Process.receivable. Lean. formal.200–201 . outsourced..224 .development.204–205 . layouts..268 Project.people.of.or..objectives.50 ... control.203 .of.32 .77 Productivity .287 ..analysis.waste..champions.and.chain...58 .208–209 .153 .mistake.. breaking...and.by. project..115 Product...288 .55.exercise.tools.process..57 .290 .194 Project.softwear.of..Kaizen. brown-paper.205–207 .289 .

274. .251 Rapid.230 Reinforcing...satisfaction.of.example.changes.. ... process..service..using.and.225 .31–32.15 .solutions. eliminating.Companion.project.and..90 Redundancies..and.avoidance.189 r Random. important. change..227 .of..plan.assessment.and.227 .plan...289 ..... .227 Proposed.charts.and.154 .prioritization. single.15.minute. .teams..32 .process..Roadmap. .35 Project.36–38 overview. . generic.160.and.89.dies..identification.events.Lean.methodology....40 Quick-response..risk.296 Project.metrics.changes.. prioritizing.F.. revenue.40 Project.102 Q Quality.262 Pull..methods. assigning. increased.. resistance.60. summary...22.267–268 .systems.demand.satisfaction..nonfinancial...298 Quality. minimize.259–260.supply....161 Push.new..260 Quality..proposed.questions.projects..55 .constraints.benefits.supply.PowerPoint.projects.334  ◾  Index conducting.eliminating.employer.control.232 Resources.87 Red-tagging.of..239..(SMED).100–101 .examples.51–54 project.103 .activities.a. codes.worksheets. others.. 45 Project..264..259...supplier. implement.processing.conditions. Kanban.39 Pull. Kaizen.Frederick.(IT).(ROI). 31 .reduction.. and..234 .in.of .sampling.systems.66.117 .sold..297 Quality.satisfaction..teams.system..system.definitions.presentations... cost..20 Resistance.. Toyota.Companion.297 Quality.. allocation.52.(COGS).identification—process.analysis.46–49 Lean.financial.(SMED).12 Return.43–44.213 .212 Projects .. Kaizen....28 .28 Recommendations.116 Project..52 Project. stable.leaders.increases..or.of.work-in-process.151 Range.charter.(WIP).240 Quantification.80 Reduce.manufacturing.analysis.and...customer.visual.7 Reichheld. short-term. increased...227 ..35–56 prioritizing..goods. 269–273 Relocation.and. SMED. Kanban.chain.50.improvement. overview...195 Regulatory. increased.Lean.to..50 project..225 Project. templates.across..2.assessment.customer.100.56 ...100 .on..and..analysis..product.219 Project.exchange..benefits.reading. suggested.production..102 .100.to..12 Project..external.technology.51.48 Project. expense..39–40 key.scheduling.demand.scheduling.55. 43–44 .change.90–91 ...organizational..100 Pull.systems..4..282 .of.global...Companion’s.forms.45 Project.investment.14.controls.of .227 .230 Red-flag....32 .inventory.105.behaviors. increased.team....212. cost.. implementing.275 Rebates.227 .cashflow.269 Projects.to.. .communicating. information.identification—process..274 .improvement.91 ....daily...267–276 .37...control.39....cards. management...267–268 .227 .and. typical.metric.setup....chains.transition.227 Projects.time.

receivable..204 Sales..125 Single.and..dies..36 Reward.and...plot..285 .225 .team.288 .team..and.promotional..and.240 .global.and. deployment..and. reinforcing.methods.297 Role.across.117 Root..204 .. example:.and... 222..processes.272 .activities.80 Simplification..287.minimizing..analysis. opportunities.23 .change. activities.142.196–198.286.events.197 .time.200 Senior.53 Simulation. changing..and...global.184.282 S Sales..164 ..receivable.Services.planning...113 ..and. improvement.assessment.marketing. Kaizen.91 Six..64.143 .estimating.data..Board.mode. process.(S&OP).and.time.26 .solutions. process.environments.projects.195 ..202 .supply.and.170.analysis.274.chains.92.Companion.221 .systems...process.. Kaizen.. communication...recognition.professionals.77.19.Financial. common.diagrams. identifying.workflows...analysis.behaviors.286 .(RPN). workflows.E).. organizational.and.map. accounts.and.196 Service...219..process.(SMED).. process. Kaizen.of. standards.(SMED).202 Sales..285. percentages.233 ....273 Shining..116 . waiting.... conducting.breakdowns..and. change...a.. reduce. level. cause-and-effect... infrastructure.management .characterization.systems.195 .1.across.(FASB)..292 Singapore.capacity.288 .190.opportunities.. 272 .recognition.and.readiness..272 Service..Lean.115 ...(FMEA)..194 ..team.of.events.286.25..192 .processes..188 .process.. process. accounts..31 Sarbanes–Oxley.prioritizing...Sigma ..improvement.258 Road. process. example..world.reduction.135 Sharepoints. disorganized. concepts...290 . level..office.example....and.119.281..rework.and..and.a.and...261 . cost-benefit.160 . data.2.and.222.80 Sharing..operations..232 .115.strategies.analyze. data.minute.141.277 .increases. 270 . collect. building.focus..knowledge.activities.202 Scatter.2. creating.rating.priority.and.systems.and..tools.212 . implementing..workflow.and.and.192 .for.separation.percentages.157 .134 Scrap.analysis.change. project.182 .industries.change..278 Roadmap.8..the..(C.analysis.214 .192 .transition.Quality. key.121 Service.across.150.of.. change.11...67 Service.and..282 Scrap..162.Index  ◾  335 Revenue.change. cost-benefit.137 ... process.. metric.. 90. Accounting...analysis .236.and.3.case.exchange. operational.and.business. 180 .263 . histograms.227 ..new... failure.40 .and..39 .223 .. aligning.changes... 255 .collection.. level... reward.improvement.135 ...136 .improvement.inventory.effects.237 ...and.analysis.269 Simplification.and. control.setup.supply...dashboards.&.167 .and.200 Risk.cause.231 Rework.7 .279 .analysis. Kaizen..90 .286.96 Setup.stakeholder.30 ..improvement. process.223 .chains. loops.. follow-up.287.287 Simulation.model.171.breakdowns.

overview. inventory.142 Statistical.(FMEA).. important.Sigma.measure. supplier.168 .and..226.19 Spaghetti..change..and.122 process..241 .methods.30.from.lean. define.tools. key.Sigma...into.61 Six.159...205 ..137 outsourcing.system.159 Stakeholder.142.extensive.analysis.33 ..proposed.characteristics.336  ◾  Index events..for.21 process.analysis.270 .239 ..5 ..63. improve.networks.61 .281 . commitment.“belt”. 254 Six.methods.. building.25. (define.295 Minitab®.261–262 ..satisfaction.mode.239–266 ..and.to..requiring.224 . control.control)...global.and.behaviors.42. components.. 255–257 .and.statistical..control..meetings.Sigma.improvement.chains.group..229 Standard..performance. data.controls.teams. Six.softwear.155 Standardization..control. general.32.and.244 .214.change.92.Asia..incorporating.67 Six.60 Statistical.analysis..example. define.61..and.process.metric. 160 Six.26–32 .18–21 ..151.process.223 .a.191 Six..89..3–34 ..identifying..template.steps.10–16 .and.improvement...244 .sampling..and. overview..process.244–253 Southeast.98 .team...methods..requirements.three. ..in. organizational.17 .137..waste. other.and...system. analyze.collection.261..plan.improvement..240 ... process..297 Small. key.change.and.strategies. Kaizen.supply...business.complexity.(KPOVs).and.error...184 .and.196.178 . .224.....and.240 methodologies. communicating. how. Companion.support.152 Strategic. measure. reinforcing.and. voice.questions.change.for.296 Stakeholders.activities.Sigma. 244–253. management.processes.activity.process.deploy..280 .259 ...change.output..184 . control. data.implementing.case..business..tools.5 .to.(SPC).control...296 mistake.analysis..principles.. improving...244 Statistical.8.variables. ..diagram.customer.system.proofing.variables. ...222.(KPIVs).the.of.295 .259–260 .and.189.9.128.System.project.initiatives.. Lean.(huddles).five-phase.. Kaizen.254 .(VOC).initiatives.analyze. projects.Minitab®.reading.263 . examples.268.22–25 .51 Strategy. methodology ..222 .Lean. building..a.11 Six...and.35 . data.new. ...111. reducing. ..solutions.. statistical.. failure...of. softwear. deploying. tools.and.across.changes.elements.30 ....3–34.processes.191 SMED.statistical..improvements..tools..240.tools..Sigma.reduction.deployment....control.129 .and.analysis..and..61 .measurement.team. 269 .296 reinforcing..analyze..events..22. projects.improve.work.analysis. important.41.10 . . suggested.breakdowns. methodology..222 ... Kaizen.a. control. key.and.267 .150.case.execution.92 SMED.and.dashboards...plan.of..improve.122 ..178 .gaps.phases .effects.and. 177.61 .variables. 24 Six.53 . Kaizen..methodologies.methods.process.Sigma.(DMAIC).253 .of.....258 .alignment..61 .242–243 . process.. . creating.61 Six.Sigma.. key.. measurement.collection.analysis. work.16.behaviors.. deployment.projects.analysis.Sigma.96 Solutions.system.measure..Quality.new.of. organizational... outsourcing.input. quality.281 ...264 .. follow-up.162 . 177 .problem-solving..data.Sigma.....280 implementing..

materials.4–7 Stratified.Harvard Business Review article).87. 92–93 .202 .map..31 Supplier.. calculation—future. process. process..58..249 Unionized.new.expenses..61 Unnecessary.and.and.74 .37 Team..chains.210 .145 ..process..of.for..117 .work.230 Time.74–75 . “Preventive…Autonomous…Predictive”. functionality.63 .production.members.63 .maintenance. just-in-time.114 . process. process..Grow”.63 ..technology... improvements.(COGS)..117 Team.77 System ....and..productive.preventive..118 Supply..identifying.. (TPM) Toyota.253 Trial.concept...37 System.8.... predetermined.and.services.87 Transferring.(TPM)...Service..37 ...92. production..time...modified..series..(TPS). summary...170–171.and.sold.complexity.support.cost..flow...101 ....in. calculation—original..(TPM)...28 Trends.. price.. see also..of.171.189 .maintenance. 100 Toyota.92.Need.system.93 System.batches..152 Summary..equipment...15.data.operations.(IT).28.274 Transition.211.sampling.184.103 .good...of..282 Top-down.just-in-time.prioritized.environment.8.process.100 Unnecessary.graph....networks. supply.and.management.jobs.164..31....You. analyze.manufacturing.61 ..eliminating.38 ..several.76.work..Number. what.state..63 Value.expectations.93 Total.performance.total.95 ..59.availability.10..One.chain.....(JIT).. dysfunctional.Index  ◾  337 .System.77 .reducing. information.30 t Takt.movement.waste.. developing.82 Time.. relative.scheduling.117 Testing.and..77 Toyota.73 .17.. (SIPOC).97 United.workflows.38 United.rate.and..of. procedures..develop.is.States.88.preductive..37 Total...analysis.. global.and.forming.96.products. constructing..of.98–99..236 Travel.conducting. benefits.32 .. within. calculation.128 Teams.training.93 ..Parcel.(JIT).strategies.systems.92 v Value.. dysfunctional.63 .157 Supplier.163 Supplies.182 .breakdowns.127 .motion. value-added.85.105 .... time..38 .57. of...control.136 ..67 “The..76 Training.(SPM).233 Unit.33 .and.72. assigning.content.and..63 .30.149–150 .. (Frederick.pull.75 U-shaped...systems. 210.137 Transfer.278 . key.210 Supplier-input-process-output-customer..workflow.stream.standardized.Reichheld.to.(VSM).information.cells...16.obtaining..batches.Kaizen?.Production.run.studies.importance...77..maintenance.or..reducing. utility. 60...initiatives.163..69 u U-charts. “Lean”.12 Total..workflows..

.7.154. reduce.basics.(VOB).and.systems.for.event.40 Wal-Mart.338  ◾  Index brown-paper..150 . reduce.163 ...115 Waste.146 building. example.of.system. voice..145 Value-adding.(VSM).. Lean.workflows..222 creating.case.time..of..63 . 74 .safety. process..and.(CTQ).21 . elements. example.11 .shadowing.187 ..and.about....280 . prioritizing..business.of.207 ..rooms.. critical-to-delivery...team...35 Work.37. eliminating.identification..time. voice.characterization.performance.of.implementing.63 ..of.job..activities.map. process.of.projects. workshop.analyzing..279 .pull.planning.87 .Six..(JIT).73 .63 .182 .. quantification..63 . process..and... critical. Kaizen.269 Work.38 .cause.100 Visual...alignment.. reinforcing.flow.29.characterization.58 “Walk.workflows.of..37 Work. process.space.implementing.131....data.211 ..61 .duration.and.office.(VOC).themes.to.31..systems. alignment..and. process..cells.and.Six.systems.and.63 .120.150.controls.setup.events. critical-to-quality.create.and.(VOC)..and.. Lean. three.workflows.253 .61–63 W Waiting....themes..62.multicultural.and.and.change.30.156 Waste.106 .development..accounts.behaviors.(SMED).and.exercise.. Kaizen.127.129.. 120.... value.process”...software.in.process.70–73 data.118.operations.63.of.workflow. objectives..unnecessary.26 . example.115.7 building..27 .and..analysis..to.and.of.251 Visio®.analysis.by.17 .(CTD). implementing.(SMED).workflows.145 ..the. Kaizen.product.156 .70. strategy.Sigma.customer. 32 Voice.and..144 .steps.. common.90 ... 141–148.(CTC)..analysis..process.Sigma..280. example.39.3 ... activities.and.the. standardization.control. calculating.38 .61.and..operations.(VA).changes. ten.and.7.and......environments.27 .280 Voice.74 .67 .system.21 .setup.and.and.the.analysis...129 ..and... Lean..workflows.unnecessary.to. outsourcing.. common.84 .176 .. process.212 .supplier.stream.106 .business.themes.146 .11. .collection..71..72.alignment.242 .customer.37 .122 . .mapping–SIPOC. just-in-time.customer. Variation.process.. translating.operations...new.of...Six.the...26–27...and.and.information. collecting.89 .of.195 Work..84 .major.. standardization.10 .with.change.and.164.environments. ..basics..create..153..95 War.(CTS).of. .60 Work .for..202 .144 .30.. process...121 ..model.material...(JIT).receivable. reducing.. process..79 Visual.7 . visual.139 .systems.processes.new..U-shaped.proofing.eliminating.10 .. quantification.(VOC).operations. just-in-time. pictures..requirements.79.205 .time.workflows. Lean.71 . Kaizen.themes.135.motion.117. Kaizen.281 .. understanding.and..43 .operation.a. outsourcing. project..279 . mistake..129 .. balance.of.83 Work.the..76.91 . reasons.Sigma..complexity. strategy.patterns.. eliminating.105 . process.. organizational. critical-to-cost...solutions...and.53 .44 .of.153 .

277...278 ..Index  ◾  339 Work.(WM)..inventory..chart..285 ..84 Workflow..(WIP)..173. internal.systems. overloaded.120.31.166 ..stations..104 Workflows... Internet-based.codes..66 .management. 105.76 X X-bar. reducing..43 Work-in-process..251 z Zip.104...247.60.119 .

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