Lean Six Sigma for the Office

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

Lean Six Sigma for the Office

James William Martin

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

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

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

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

i  ◾  Contents

2

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

3

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

As.integral.York. must. forecasting and modeling.MA:..the.. Jae.Press.of... Harvard. Operational excellence—Using Lean Six Sigma to translate customer value through global supply chains..1990.addition.Tschohl.The quest for value.workflows.Stewart.. James. E..New.important.NY.Prentice..improvement.Lean Six Sigma for supply chain management. with. John.The value enterprise—Strategies for building a value based organization.complexity. impact. Michael.K.E.New.School.Harvard..Englewood.. The transformation imperative.York:. James.Kaplan....Brent..Porter.York:.improvement.process. services. 2002.W.. .and.. 1996.Cliffs.Free.Giroux..Friedman.Bennett.several...York.shareholder.Leading change.a. Burck. School.Publishing.concepts.are.. objectives.Tully.within.Mankins. can.. goals.Boston:.can.York:.of...The world is flat.example.value. strategies....of.Meyer. be.Crown.to..initiative..New..Press.2007.a.Auerbach..tools..years.Six..Lean.Peter.Blur—The speed of change in the connected economy..1998.Lean.deployment.Press... Volkmann..an.Kotter.Addison-Wesley..teams..also.Michael.Hall.and. 2nd.S.summary..In.New. Thomas.this.. Charan..viewpoint. Suggested reading Larry.Boston:.Straus. from.of. profitability.in.all.continuous-improvement. John..projects.is.Harper.takes.an..Farrar.Best. roduct.M. Reading.1997.P. volume. John.improve.selection..Business.system.to.. Thomas...1996.Christopher... Robert.Measures of manufacturing excellence.Davis.part...the.G. Lean.mentioned. Boston:.ed.Business. In.New...sequence.McGraw-Hill.NY.levels.tools. 2008. Execution—The discipline of getting things done.Shim.In. ———. rationalized. an..are.of.McTaggart. strategic.at. part.Sigma.. strategic.York..that..Kontes.Sigma.ed. Charles..Business. aligned.problem-solving..reduce.Richard. or.an.MN.Sellers.and. eployment.The competitive advantage of nations.work..Press.Martin. which. organization’s....a..New.Donovan.III.Sigma...NY....deployment.of. be.a.Press..used.Six. with.Six.and..It..Free.New.Business.McGraw-Hill.Strategy Alignment  ◾  33 d .and. p ..an.successful.York:.NJ:. or. a.1990..productivity. Stan.organization.logical.L.Wortman.1996. Ram..Siegel. be. and.increase.was.Achieving excellence through customer service.used.methods..and..2006..C. G.methods.W....to.work.Harvard.. Minneapolis.Joel. and.and.Handbook of financial analysis.in..and.2001.1994.The value imperative—Managing superior shareholder returns. Bossidy.1990. Business. School.Boston:..

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

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

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

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

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

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

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

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

strategic. important..deployment.objectives.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.prioritize. to.3 project charter example. 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).These.gaps.of.organization’s. of.obtained.an.in.through.performance.been.prior. that.with.There.the..identifying.shown.are.include. ensure.643 $ 61.. e average A/R balance is $15 million between 31 and 60 days. also.are.000 $ 56. over.2.to.used.strategic.that.and.projects.minimum.Figure. e result is lost interest expense from money that should be collected no later than 30 days from invoicing.analysis. To reduce the accounts receivable cycle time by 50% in the 31– 60 (15 days) to save $61.goals.are.4.gaps.be.their.identified.and.resource.several.643 $ 5.6 K ($15 MM) *(15 Days/365 Days)*10% = $61.common.already.have.Some.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.to. most. prioritizing projects Prioritization. projects.of.strategies. $10 million between 61 and 90 days and $5 Million over 90 days..expenditure.above.projects.000 $ 5.performance.close. .can. productivity.to.that.an.643 $ 56.643 Comments Team Information Team Leader: Team Members: Name Role Expertise % Time Figure 2. improvements. is.

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

not.those.process..3..major.operational.different. is.or.of. in.organization.our. found. must.Another.methods.this.trends.project.source.true. simplification.that. particularly.process. it.performance..execution.book.example.be.analysis.a.and.similar.Project Identification  ◾  53 Profit and Loss (P/L) (Millions) Revenues Net Sales Other Income (Net) Total Revenues Expenses Cost of Sales Selling.of.another.. The. Benchmarking. projects.team’s. to. However.discussion.or.in.. analysis.a.the.VSM.performance..projects.will.serve. of. an.. performance.evaluated.As.benefit.Finally.projects.verified.safety. is.poor. used.is.. be.reports.4.and.5 generic financial statements—profit-and-loss statement.other. mapping.of.regulatory.show. financially.of.to. also.to.focus.used.VSM.this..for. over.is. of.4% Figure 2.and.tools..good. issues.estimates.Chapters.adherence.related.will. regard.. and. using.of.either.Figure.of.and.method. in.or.including.are.complicated.workflows. identified.Lean.of.5% 3. from.to.The.the.useful.to. identify. General and Administrative Operating Expenses Depreciation Interest Total Expenses Income Before Taxes (30%) Taxes (30%) Net Income Shareholder Return on Equity Current Year Previous Year $100 $20 $120 $90 $10 $100 $5 $20 $70 $10 $5 $110 $10 $3 $7 8% $5 $18 $60 $8 $4 $95 $5 1.organizations.how.2..of.. activities. using.any.5. process.require.tools.This.it.review..4. benefit..Benchmarking. an.be.of. information.On.teams.projects.operational.identifying.it.may. In.and.requiring. constructing. .useful. provides..major.is. commonly. mapping.improvement. advantage.walk-throughs. compare.variation.listing.metrics.an. projects.a.always..time.discussed.and.to.when. current.a.their..can.against.especially. using.an. projects.to.includes. stream.health.is..be.between.. value.. projects. also.performance.may. organization’s.financial. is. (VSM).statements.identify.financial.useful. useful.Continuing.contained.Figure.operations.against. would.target.of.a.standards.source. project. that.they. VSM. method. identification. that.Comparisons.toolsets.information.initial. In. is.types.a. process.in. An.initiatives.an.is.2.5% 4. operational.center.good.exhibit.ideas.as.improvement.will. a. operational.to.always. systems. standardization.in.similar.improvement.verify.. project.in. that.hand. greatly.methods.a.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

manner.perspectives.given.a.initiative.also.in.within.several.properly.to..important.several.found.realign.information.barriers.four. is.creating.resources.communicating.objectives. . create.organization.and.common.of..effective.depends.respect. both. has.team.consistent.to.an.deployment.in.responsibility.element. aligned.to..and.that.will.to.and.to. d .a.improvements.is.its.the.and.Six.shown.the.a. Process.way.an. an.are.to...to.shown.work.common.four..maturation. Celebrate success! 3.68  ◾  Lean Six Sigma for the Office 1.factors.teams.very.of.is.in.that..This.a.differences.on.responsibilities.teams.translated.perspectives.key.3:.factors. and.goals.consists.and.success.situations.perspective.the.to.and.team’s. with. the.members. process.is.been.through.3.is.reinforcing.norming. forming. focus. analysis.and.systems.ways.support..as. work.the.is. a.consistently. Performing Stage 2. an.different.or.. that.developing.stages. deployment.lower.simple.not. and.actively.be. a..goals. However..more. organization’s.also.objectives. Continuously improve team performance 1.ensure.it.improve.some.change.necessary. incentive.is.A.. ifferent.contrast. collection.provide. the. data collection. on.do.creation.team.team’s.they.have.down.high-performance. help.. high-performance..leadership.the.these.high-performance.important.performance.important.support.help.are.roles.Figure. organization’s..respected.effective.of.members.active.lack. objectives.success.work.and. Train the team in the proper tools and methods of problem identification. and process change 4.skill.The.factor.the.that. Forming Stage 6..that. should.higher-level.success.through.In. within.between.create. and.Lean.especially.one. deploy lean Six Sigma teams.move.dysfunctional.related.are.studies.stages.Another.been.team.interval.It.facilitation. Norming Stage 2..Sigma.remove.important. teams.. diversity. goals. team. leadership. Select the team based on the project charter 4.facilitation.while.team.patience.of.of.a. are..particularly.usually..organizational.organization.leadership.with.that. data.require.time.easier.successively.of. improvement. Identify root causes of the problem 5.An.has.are.but..stage.Another. team. analysis.others.and. Storming Stage Figure 3.a. psychologically.sustain.levels..efficient.varies.extent.when.storming. Case.by.Diversity.in.performing.team.maturation. activities.to.to.. culturally. An.latter.aligned.sets.activities.spends. the..process.a.quickly.In.team.shown.or.because. Manage the four stages of team growth 3.3 3.of.

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

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

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

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

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

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

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

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

88  ◾  Lean Six Sigma for the Office Process Batch Time 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 60 Transfer Batch Time 2 2 2 2 2 2 2 2 2 2 2 2 24 Operation A B C A B C A B C A B C 1 2 2 2 2 2 2 2 3 2 2 2 Operation A B C A B C A B C A B C A B C A B C A B C A B C A B C A B C 1 2 2 2 2 3 4 Unit 5 6 7 8 9 10 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 Unit 4 5 6 7 8 9 10 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 Figure 3.15 7.d. .2 transfer batches.

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

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

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

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

Lean Six Sigma Basics  ◾  93

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

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

2. Maintain standard production rate

3. Reduce yield loss at start-up

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

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

94  ◾  Lean Six Sigma for the Office

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

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

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

1500

1250 Units (000)

1000

750

500
M ar

ch

Ju

ne p

Se

m te

be

r e

D

m ce

be

r M

ar

ch

Ju

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Se

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Month

Figure 3.17

7.i. leel demand.

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

96  ◾  Lean Six Sigma for the Office

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

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

Lean Six Sigma Basics  ◾  97

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

Unit i

Unit Flow for Several Jobs Job 1

Job 2 Job 3

Lead-Time Reduction

Job j

Figure 3.18

7.j. reduce lot sizes.

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

98  ◾  Lean Six Sigma for the Office

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

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

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

Lean Six Sigma Basics  ◾  99

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

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

Production Sequence

Mixed-Model Sequence

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

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

Figure 3.19

7.j.1. mixed-model scheduling.

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

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

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

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

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

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

shown.the.a.are.on.event.Kaizen.rapid.Chapters.planning.execution.for. Present Findings a b c d a b c Wednesday AM Wednesday PM Thursday AM Thursday PM Thursday PM Thursday PM Friday AM ASAP ASAP ASAP 4. .are..be.. will.and.very. Our.if.concepts.their.teams.be.events.1.sections.will.These. shown.activities.. and procedures h Collect information of operational cycle times including: Setup time Processing time Inspection time Transport Waiting i Take pictures of the area to be improved j Obtain example of process breakdowns k Obtain examples of best in class process conditions l Develop schedule of Kaizen event m Communicate the event n Mark area for event if practical o Setup flip charts and organize other materials as required Bring team together to discuss roles and responsibilities Discuss objectives of Kaizen event.“presenting.the.very.four.1 Kaizen eent checklist.team.4.a.Kaizen.paced.”.of.Figure.discussion. carefully.deployment.several.the.will.event.Kaizen.major.Lean.sections.These.to.build.it.coordinated.to. be.result.activities.days.plan.people..The. financial and operational Conduct training as required Create detailed value stream maps and layouts of the process workflow Facilitate to ensure full participation of team Collect data at every operation relevant to: VA/NVA/BVA Production rate (units/minute) Scrap % Rework % Downtime % Capacity (units/minute) Setup time (minutes) Inventory (units in queue) Floor area Analyze all data and develop prioritized improvement ideas Change the process according to prioritization listing Apply 5-S and mistake-proofing methods Develop a presentation of all analyses and implementation activities Develop lessons learned (what did and did not work) Develop ideas to leverage improvement ideas Present findings to management Complete all prioritized improvements not completed during Kaizen event Communicate the Kaizen event results Celebrate with team Monday AM Monday AM Monday AM Monday PM Monday PM Tuesday AM/PM 2.important..sequential.for.our.discussion.in. Follow-up Figure 4.“conducting.supporting.1.for.presented..”.major.adversely.structured..list.first.of.include.and.continuing.follow.As.impacted.emphasis.schedules.and.these.be.of.Lean.members.days..”. chapters.It.an.of. including breakout rooms Ensure support personnel are available to assist the team Collect process information of floor layouts.that.events.involvement.”.the.fast. the.is.“preparing..sets.in.reason..on.this.Kaizen.the.findings. Prepare for the Event Activity Code a b c d e f g Days 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 Required Activity Comment Select project charter Assign project leader and team members Reserve a conference room Obtain supplies and equipment Ensure facilities are available.For..4.Also.112  ◾  Lean Six Sigma for the Office Major Phase 1.divided. sections. work flows.planning.be.the.activities.to. Conduct the Event a b c d e f g h i 3.Six.events.subsequent.completed.two.will.Sigma.of.will.is.with.in.each.into.require.within.event.basis.3.Chapter. goal.form.of.to.containing. several.event.“follow-up.with.poorly.may.

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

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

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

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

Scrap %. any work task with a prefix of re such as re-analyze.) 3.5 How to Do It data Collection Strategies in Serice operations Bring the team together and create the VSM using sticky notes on a wall. e-mail audits. Check financial and operational reports for material or direct labor waste. Also.table 4. materials processed by equipment could be measured or counters designed into equipment can be checked to calculate production rates.e. Alternatively. the system will time-stamp all transactions within a process workflow. shift. Then “walk-the-process” to verify the VSM. redo. Ideally. Metric Data Collection Strategy 1. Create a value stream map of a process workflow or a floor layout of a single work area. an audit could be done on completed transactions in e-mail by operation (sent mail). and shadowing to identify rework. Audit operations through interviews. etc. Check financial and operational reports for material or direct labor rework. Count the number of transactions that could not be used in production. Production rate (units/ minute) or operation cycle time. reports that were not required.. Audit operations through interviews. People can also be “shadowed” for several days and their activity times recorded at 15-minute time increments. . time of day. employee. Rework%.e.. Count the transactions exiting the process and divide by the hours or operation. e-mail audits. job type. This can be done by operation. Count the number of transactions that passed through process operations more than once. i. re-inspect. 132  ◾  Lean Six Sigma for the Office 2. marketing prototypes not sold. checking personal calendars will show meeting times that in many situations are non-value-adding. 4. i. 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. and shadowing to identify scrap. VA/NVA/BVA. With respect to equipment. etc.

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

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.

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

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

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

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

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

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

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

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of.was.can.a.9 30.3 63. Number Employee Suggestions e.800 3..0 17.two.environments.0 13. initial. example.Lean.a.conditions.0 18.0 24. Setup Time (Minutes) 8.time.in.0 11.number.or.0 63.increases. have. Production Rate (Units/Time) or Operation Cycle Time 3.a.be.on.how.0 21..changes. using.0 21.depend.same.commonly.classifications.job.000 5. through.0 21.for.9 56.source. both.800 Week 9 Week 1 Week 2 Week 3 Week 4 17.classic. several.000 5.rework.0 20. is. a.changes. .and. Excess & Inventory 15.1 1.as..2 26.0 22. important.chapter.provide.As.value-adding.0 27.0 15.0 25.0 16.the.0 18.3.time. On-Time Supplier Delivery m. to. an.0 9.0 15.in.in.0 13.0 30. event.0 18. data.audit.in.to. Inventory (Units in Queue) 9.be. a. condition. Material Availability t.any.0 16.0 12.from.7 85.0 20. Annualized Savings h.the.possible.2 1.0 16.additional.the.0 19.15.can.0 27.0 64. The.0 63.through.0 2.7 4.1 78. it.red-flag.7 99. to.audit. because.collection.0 23.example.in.of.000 5.0 16. as.9 72.lists.5.list.0 19.level. Overdue Backlogs r.000 3.increases. other.lists. Capacity (Units/Time) 7.000 18. projects. Scrap% 4.The.a. Data Accuracy s. First Pass Yield (Rolled Throughput Yield-RTY) j. time. in. either. (NVA). Floor Area Additional Metrics (Depending on Industry or Function) a.will..the. useful.0 72. Figure.in.0 28.0 50.0 24.0 69.efforts.0 12.shows.0 8.0 16.additional.0 54. an.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.and.the.0 2.. been. operational.total.000 10.1 75.environments.0 17.Later.an.4 58. or.mistake.industry..analysis.metrics.0 14.template.1 24.0 20. Unplanned Orders p. collection.1 1.This. There. the. and.good.0 55.0 14. immediately.This..improvements.a.measurement.prioritize.As. is. increased. Returned Goods Expense/ Incidents g.5 1.a.application.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.standardization.000 10..0 15.initial.that.75 50 $1.0 33.. Percentage Scheduled Jobs Missed i. Downtime% 6.0 65.can.0 16.1 6575 Average 15% 26% -27% -17% -14% 42% -17% -30% -34% Figure 5.of.0 10. performance measurements (similar to Figure 3.is.0 2. are.payable.17. information.4 31.the.0 15.shows. Profit/ Loss k.0 17.issues.other.several.contained. methods.percent.This.5 81.0 62.methods.0 26.0 29.example.4 30.0 18.0 28. be. Warranty Expense/ Incidents f.process.2 1. As. perspective.advantage.8.a. non-value-adding. using.process.projects.0 55.0 19.metric.5.0 25. proofing.at.office.000 16.0 15.8 1.000 5.categories.to.more.0 55. Number of Customer Complaints d...0 19. 85.of. Forecast Accuracy n.team.7.a.the.0 60.Figure.0 17. Kaizen.0 24.”.6 27. of.5 87.Kaizen.2 1.simplification.could.specific.0 30.will.of..a.5.shown.whose.function.team.to.process.“frequent.of.0 20.9 17.be.also. Value Adding % 2.0 18.1 62.advanced.000 10.0 1.7..0 2.0 1.0 19.use.000 5.3 92. Total Process Workflow Cycle Time b.be.that.5 24.7.process.0 63.analytical. schedule.5.Kaizen. that.1 76.0 10.0 13.scrap..in.0 21.9 14. Lead Time o.one.of.0 13.within.0 25.Figure.. information.to.Figure.3 1.office.Figure.the.in.this. a.3 60.approach.but.those.percentage.job.value-adding. shown.0 1.template.data.0 18.Figure.that.performance.a.0 21.of.which.0 74.Figure..0 5.(VA).000 10.their.0 29.0 14.of.to.accounts.50 420 Date: July Auditor: Joe Takt Time: 8.8 100.0 100.7 1.0 52.issues.0 16.be.0 23.improved.percent.An.8. that. Rework% 5.similar.other.0 66.process.0 20.0 17.using.done.such.of.percent.5.0 24.implies..shown.5. follow-up.5.0 73.reduced.and.8.0 68. Number of Problem-Solving Teams c.0 14. Schedule Changes q.including. from. baseline.identify. Inventory Efficiency (Turns) l.several. quality.800 3.. because.000 10.800 3.0 22.combination.VA.0 28.negatively.is.red-flag..may.to.7.137.a.0 19.0 70.15.called.0 20.0 25..Figure.percentages.5.0 1. shown.order.in.analysis.1 1.we. impact.7.tools.detailed..4).several.time.demonstrate.0 16.

50 $0. be. Jobs required three signatures.shown. down. example.the.process..workflow.operations.workflow.drill.00 $22.causes.within.increase.processes.be.its.50 $535...operational.occurrence.down.be.5. Employees confused as to work task.percentage.level..also.can. operation.of.this.5.50 $21. Had to call supplier several times.or. into.50 $0.issues.increase.to. shown.miscommunication.will.process.commonly.continues.context.00 $75.a.of.5. the.root.and. Jobs had to be walked to another department. 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.Kaizen. in.50 47% Jobs could not be completed due to incomplete information.to.issues.lead.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..and. spent.9.due.will.. every.a.used.wasted.these.“standard. and.probability.time.The. Employees did not have information to perform job.the.due.should.00 $75..customer. number.In.of.analysis”.a. modified. at.Figure.8.shown. broken. to. payable.. The. its.00 $15.as.the. shown. Job was rushed due to poor planning.of.of.team.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.This..lead.and. As.analyze.5 10.their. Work tasks that can be eliminated form the process.75 Date: July 50 Auditor: Joe $1.or. Jobs required several sequential operations..to.its.in. These. reasons.reduce. important.(VA).teams.. or.Figure.will.for.lack.may. also.changes.team.00 $7. time.may.in.myriad. Work procedures can be made more efficient.will.the.either. the. New employee not familiar with tasks.template.accounts.also.50 $0.the.excellent.of. is.causes.at.5.within. machine.00 $0.the.a.due.00 $19.00 $52.schedule.50 $79.factors.serve.for...within.8.9.time.50 $0. and. Figure. well.to. elimination. issues. In.00 $30.00 $13. Lack of clarity regarding start of invoice.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. In.be. root.25 $15.Figure.the.process.00 $10. of.sources.template. breakdowns.cost.a.causes.changes.value-adding.the.Kaizen..eliminate.as.expediting.office.error.of. lower-level.a.reduce.greater.operations. analyze.in. red-flag.template.time.50 $0.process.requests.. .00 $52.as. Jobs for these suppliers are run once per year.of.time.75 $10. useful.and.occur. increase.8 process audit worksheet.the.manufacturing.into.50 $9. Jobs have been pending for weeks.situations. conditions.waste.investigate.occur.a.to.a.the.root..improvement. metrics.projects. other.activities. Jobs were released at the end of the shift.then.materials.can..00 $0.50 Takt Time: 8. Figure 5. other.The.137.

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.focus.a.the.of.process.wasted.percentages.8.156  ◾  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.how. the.estimated.also.As.operations.equated.of.5% 12.5.percent.Perhaps.broken.for.percent. of.event.to. long.. within.time.of.in.may.was.focus..to.level.percent.good.accounts.can..already.workflow.be.the.which. 25.components.in.are.Figure.these.represents. the.is.9...5..the.shows.priority.focus.team.analysis”.process.357.the.It.3% 45.. cycle.on... identify.137.minutes.5. the.75 50 $1.estimate.our.5.several.of.reflective. of.across.time.first.total.minutes.process.time.relative.part.a.performance. process.are.either.discussion.the.also.analysis.9. 357.This..a.that..gather. .categories.represents.a.similar.9% 11.job. should.very.waiting. be.of.jobs.45.issue.a.non-value-adding. reasons.to.of.Figure.the..2..a. to.. time.to.10. one.place.within.just.in.the.time.longer-term.or.template.In.operations.and.would.in. time.be.event. Kaizen.waste.approximately.at.the.example.non-value-adding. from.4% Figure 5.payable. time.data.“summary.3% 10.of.85.ensure.waiting. more..the.3.These.50 420 Time Due to Defects Date: July Auditor: Joe Takt Time: 8.2% 16 44 37 4.one.1.To.as.9.Figure. non-value-adding. the.Recall.this.Figure.down.total.accounts.baseline.useful.the.performance.information. or.be.lower. for.time.. shown.an.9 Waste analysis by operation.if. major.Kaizen.summarize.a.4 Minutes/Unit (50 units in 420 Minutes) Excess Production Excess Movement Excess Inventory Processing time Inspection time Excess Travel Total Time Setup time Transport Operation Name (Number) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 Total: Percent of Total: Distance Waiting Waiting 5 0 0 2 0 4 0 0 1 0 2 0 0 0 5 0 0 0 6 0 0 8 0 0 7 0 0 5 0 5 0 1 10 12 15 8 3 2 1 6 6 8 4 2 4 2 3 4 7 8 2 1 4 6 7 8 8 8 1 1 5 3 2 3 3 1 0 0 0 5 7 0 0 0 9 0 0 0 4 0 0 3 0 0 0 0 0 1 0 3 0 0 0 4 0 0 0 0 0 0 0 0 0 0 0 1 0 0 1 0 1 0 0 1 0 0 0 1 0 0 0 0 0 0 0 0 0 0 5 1.total..which.

other.this.noted.heavy.both.improvement.by.with.directly.the.4% 0 357 100.often.make.and.several.4% 16 4.the..is..a..only.days.at.than.are.example.office.and.tasks.of..observer.an.This.because. related.shadowing. similar.beginning. also.repeatable.greater. payable.other.such. work.be. another.possible.calculated.As.11. more.employee.to.the.diverse.15-minute.a. templates.work.capture.a.office.3% 37 10.actions.levels.job.to.flow.employee.time.repetitively.0% 0 0 0 0 0 0 0 0 Figure 5..or.root.an..over.working..work.who.of. the. tasks.structured.data.to. spends.during.extensive.major.not. and.Kaizen.a.computer.5.time.useful. number.by. their.components..process.“job.their.be.Figure.just.job.method.operational.attending.not.a.9% 40 11.may. information. is..at.complicated.of.It.Using.an.situations. is.for. in.involving.an.collection.analysis.time.require.employee.137.. his.the.method.within.work. not.time.work.to. to. job.procedural.is.professionals.track. tasks.10 Summary of waste analysis for seeral jobs. shadowing. description...is.with.shadowing.is...on.time..do. in. an.that.5% 44 12.20. Job.proximity.process.analysis.of.5.and.work.examples.analyses..However.shadowing”.event.flow. more.to.linked.information.used.industries.is. complex.where.work. 5.professionals.process.in..days.more.(NVA). performing.time. information.processes.job.this.not.of. it.using.the..because.it.in.percentages. that.shown. or..by.the. data.facilitates. collection.data.these.context.extends.are.an.workers.increments.when.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.and. to.template.it.those.standardized.are.a.NVA.manufacturing.event.team.8.analyst.Kaizen.As.meetings.which.discussed.useful.simple.systems.that..the.shadowing.is.large.standardized.with. reports.In.collection.should.electronically.meetings.that.operational.The. easily..occur.are.effective.is.analyze.very.may..percentages.activity.records.tasks.Most.75 50 $1.Then.tasks..As..a.as.example.used.in.shadowing.characterized. include.comment.required..work. method..in.have.commonly.work.tasks. adapted.will.use.from.places....2% 5 1. spent.9.at.and.may.tasks..jobs.In.found.working. be.may.sequences. useful. to.have.the.which.useful.Quantitative..amount.time..inordinate..3% 164 45. except.work.and.activities.but. complex.templates.over. or.within.and. is.of.is.of.job.components.nonvalue-adding..are.several. process.service.assessment. and.by.. shown.that. directly.an.available.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..on.hours.improve. job.an. spent.managers.a.or.changes.useful. .information.result. Figures. associated.an.be. In.Typical.and. major. the..an.50 420 Date: July Auditor: Joe Takt Time: 8. It.Typically.of.final.words. her.of.is.methodology.or.this.show.it.associated.analyze.cause.

work.work.apparent. that.easily.flows.in.. it.collecting.137.11 Job shadowing worksheet.employees.of. the.can.or.also.tasks.collection.used.the.collection.of.manufacturing. A.75 50 $1..office.and. .data. that. diagram.work.examples.But.extent.environment.this.and. efficiently.templates.However.by.during.possible.result.analysis.it.known.computer.a. should.spaghetti.50 420 Observations Date: July Auditor: Joe Takt Time: 8.an.in. by.movement.tools.is.template. be. work.collect.course.daily.this.is. and. provided. teams.is.movement.used.and.shown.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.adapted..shots.data.concept.could.to..diagram.office. interact.their. a. sequence. to.operations.be. various..stations.of. to.In. minimizing.move.a..other.information.reports. possible.between. A.method. materials.method.analyst. addition..It. to.common.The.data..also.operations.material.work. information.screen.of.or..it..well. high.spaghetti.12. a.as. practice.the.rearrange.forth. co-locate.office.between.quantitative.Using.a.is.over.of.back. degree.cubicles. to.example.diagram. common.relationships.templates.an.information.spatial.is...and.to.in. spaghetti.or.their..Figure.4 Minutes/Unit (50 units in 420 Minutes) Figure 5. greatest.the.an..change.may.5.tasks...shows.

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.

method.sequence.and.166  ◾  Lean Six Sigma for the Office table 5.25. Kaizen.an.major.five-why.should.inventory. inventory.25.the.year?.in.detail.question.work-in-process..the.in. find.of.a.service.sold.in. ..C&E. Lead time of production line “XYZ” increased by 5%.be. 25. Why. or.inventory. ask.Inventory.. team.is. increased. the.increased. cost.faster. 5. Machine A has not been running at 95% of the required target rate. operational.COGS.several.6.increase.percent.Table.but. a. financial.due.did.. faster.diagram.As.5.6 Fie-Why Analysis Level of Question Effect (Output) Answer (Opinion) Inventory Investment increased 25% faster than sales last year.higher.increase.product. Reviewing.production.could.a. shown.how.inventory.are.A.goods.5.increased...is.be.be.Table.by.answer.necessary.“inventory.into. to.used.turns. to.sales.levels.average.important.percent.which.in.”. Using.invested.inventory.a.be.ideas.of.the. is:.of. exceeded specification? analysis.percent. report.the.in..major.is.analysis.can.that.to.This.This. to. operational.divided.material. reports.seen.in.labor. the.decrease.by.would.percent?”.. first.a..the.investment..contrast..ratio.also.relative.year. inventory. team..to.team.is.a.“Why. sales.XYZ.have. 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.produce.may.increasing.or. has.analysis.theme. required target rate? Why has there been a scrap problem with raw material component B? The component’s outer diameter periodically exceeds specification.production.that. an.be.the.organize. investment. Inventory turns (average inventory investment necessary to support sales) decreased by 25%. to. percent.some.they.brainstorming.investment. the. 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.focus..“effect”. a. five-why.(COGS).line.last.find.sales.themes.turns. applied.they.example.by..useful.COGS.of.required.the.shows.in.factors.lead.down.one..than.the.differences. However.last.useful.In.by.turns.inventory. question.example.6.that.the.time. 25.five-why. may. would.from.an.(WIP).than.that.In.of..decreased.of.investment.level.example.inventory.. example.to.into.

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

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that.the..inventory.sample.are.data.as.outlier.example.variables. as.which.analysis.dispersion.values.Data Collection and Analysis  ◾  169 Pareto Chart of Process Breakdowns 90 80 70 60 50 40 30 20 10 0 100 80 60 40 20 0 Percent Process Breakdowns es rk ls rk g b n n g es ds es er iti o ro o tin Jo tio tio in m r r th iv W nt w ai a a a in i da du O ct ch Co Re W s to rdin orm Tra le T tan oce A e o f f yc S r g at e ng o In k o C of d P in B ssiv ha ed C k of Lac ong ack gne dd ce C t c A L L esi Ex nt mi La eD lu ue Li Va eq rly Fr oo on P N Count Count Percent Cum % 15 10 10 10 10 5 5 4 4 4 3 3 9 16 11 11 11 11 5 5 4 4 4 3 3 10 16 27 38 49 60 65 71 75 79 84 87 90 100 Figure 5.a.formula.as.the.percent.values.or.other..5.can.minimum.outliers.marked.location.is. the.percent.is.to. another.be..”.. . set.type.of.Figure.a. But.methods. range.50.any.provides.displayed. value.are.the.relative.plot. very..same.an. minus.data..A.analysis.percentile.data. of.25th..Figure...into.well.statistical.are.50. Box plot The.the.are. maximum.17.be.the.sample. plot.that. which.“lost.“excess.in. is. this.are.a.a.has.categories.and.were.percent.box.higher.point.data.percentile.than. tool.the.and.as.to.see.the.of.In.continuous.down.a.50th.25. the.the.median.shown.the.time.lost.common..of. can.point... in.5.the.graph. a. in. minimum.in. box. and..point.rest.5.points. shown.analytical.below.to. and.graph.broken.can.75th.provides. Finally. In.a.a. is.is.sample. are.it.median.applied.having. calculated.various..set.the. data.the.relative.percentile.data.the. in. Several.also.at.. in.tool.“waiting”.from.information.a.a..central.A.on. which.16 pareto chart (data from Figure 5.of.percentile..variation.at.. higher.the.point.the..discrete.5. the.the.a.of.“waiting”.that.a.values.the. the.see.below.percentile.the.from.an.other.of.both.that.is.are..sample.percentile.set. displayed.maximum. plots.sample.each.which.shown.may.using.calculated..asterisk.We.In.different. manner.categories.9.50th.of.a.9).that. box.say. be.represented.can.several.plots.advanced. A.of.shows.values.which. has. Figure.75th.dispersion.in.median.by.of.category.The.of.in. comparative...Also.a.in. also.example. below.as..process.is..represents.continuous..include. An. useful. scale.above.time.data.category.this.Figure.time”. box.at.variable.75.additional.a.percent..These.a. analytical.Box.we. and. more.and.the.25th.also.17. shown. plot.of.is.17.

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

19 time series graph (data from Figure 5.Data Collection and Analysis  ◾  171 Scatter Plot of Production Rate and Capacity Versus Rework Percentage 100 90 Units/Shift 80 70 60 50 15 20 25 30 Rework Percentage 35 Variable 2.7). Time Series Plot of Production Rate and Capacity 100 90 Units/Shift 80 70 60 50 W ee k 1 W ee k 3 W ee k 5 W ee k 7 W ee k 9 W ee k 11 W ee k 13 W ee k 15 Variable 2. Production Rate (Units/Shift) 6. Capacity (Units/Time) Time Figure 5. .18 Scatter plot (data from Figure 5. Production Rate (Units/Time) 6.7). Capacity (Units/Shift) Figure 5.

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number. or.modified..174  ◾  Lean Six Sigma for the Office Kaizen Opportunity Worksheet: Date: Process Workflow: Process Owner: Team Leader: Team Members: Kaizen Opportunity: Project Number: Problem Statement: Root Causes: Required Actions: Current Performance: Future Performance: Anticipated Benefits: Figure 5.scale.has.10.of.benefit. or.need. business. to. benefits.correlation.then.will. Normally.process. Ys.financial.a..they. how.and.to. done..their. rates.no.projects. projects. is..between. relative.matrix. a. prioritize. used. matrix.in.or. a.implies.relative.In. to.improvements. to.current. their. cause-and-effect. relationship.shown..example.implies. Xs.. input. a. .matrix..the.21 improement opportunity worksheet.10.or.22..activities.The.identified.and.22.process.Figure.collection. be.(C&E). relative.5.1. prioritize.the.correlation.a.improvements.for. outputs. C&E. prioritized. using.a.prioritization.to.is. or.a. to.1. variables.metrics.project.5. prioritization.data.degree.key.the. can.high..between.large.. be.A. shows.that. Figure.one. If.been.whereas.several. to..using.operational.. process..

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that..5.employee’s. standard. Lean. that.some.Overall.information. plot. which.a.can.or.Six. time.others.statistical.percent..work. methods.high.of.more..root.work.causes.of. . with.be.example. and.could.5.. to.24. to.and.eliminated. in..more.themselves.is. NVA. conjunction.for.do. management.extra.to.them. should.In.and.NVA.. in.meetings.the.simple.specific.be.team..the. would.by.Sigma.tools. noted. Reducing.Figure.has.the. methods.the.and.with.of.applied. provide.shadowing.problem.61.box. decision.be.summary.inventory.and.in.that.analytical.approach.its. be.efficient.Sigma.Perhaps. time.do. Lean.lend.of.24.shown.how.useful. components. However.a.an.The.methods..aids. approach.to. and.communication. contains.Figure.improve. NVA. investment.using.Kaizen.analysis. the.shows.is. are.employee.be.not. example: inentory Analysis and reduction Figure. situations.management.the.24.can. inventory.to..advantage. a.useful. Six. improvement.in. organized. may.an.the.format.as.most. It.a..displayed. in. more.23 Analysis of job shadowing data.. percentage.abnormally.Data Collection and Analysis  ◾  177 Box Plot of Time versus Transaction Type 60 50 Time in Minutes 40 30 20 10 0 Classification Type NVA VA Email NVA VA Meeting NVA VA Phone NVA VA Report Sum of Time Classification Type NVA VA E-mail 22 Meeting 210 Phone 51 Report 60 Grand Total 343 Percentage 61% 9 50 97 60 216 39% Grand Total Percentage 31 6% 260 47% 148 26% 120 21% 559 Figure 5.information.needed.contained.tools. methods.such.that. inventory.in. useful.make. of.5.making. reduction.time.

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

000 64% 17% 7% 4% 4% 4% $638.700 $42.000.400 $66.25 high inentory inestment—first leel.100 A B C D E F Count Percentange Project Estimated Impact** Canceled Order Schedule Change Late Deliveries Large Lot Size Missing Materials Quality Issue Total Cost-of-Goods-Sold (COGS) Inventory Investment Due to Issues Total Inventory Investment Inventory Turns Ratio ** Subject to verification Data Collection and Analysis  ◾  179 Figure 5.000.000 $2.900 $42. .100 $171.000.000.000 5 100% $1.900 $38.000 $1.Reason (Issue) 134 36 14 9 9 8 210 $10.

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337 A1 A2 A3 A4 Count Percentange Estimated Impact** Project Inaccurate schedule Late delivery Missed Schedule Unknown Total $638.862 $514. .Root Cause (Canceled Orders) 9 108 10 7 7% 81% 7% 5% $42.624 $33.164 134 100% $638.27 high inentory inestment—second leel.341 $47.164 Inventory Investment Due to Canceled Orders ** Subject to verification Data Collection and Analysis  ◾  181 Figure 5.

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911 $347.341 A21 A22 A23 A24 16 13 73 6 108 $10.341 81% 12% 10% 54% 4% Count Percentange Project Incorrect Invoice Carrier Issue Customer Not Notified Unknown Total Cost-of-Goods-Sold (COGS) Inventory Investment Due to Late Deliveries ** Subject to verification Data Collection and Analysis  ◾  183 Figure 5.656 $28.000 $514.29 high inentory inestment—third leel. .Root Cause (Late Delivery) Impact** $76.574 $514.199 $61.000.

five-why.McGraw-Hill.Quality planning and analysis. checklists.control..graphs.of.tools.the.New.York:.Measuring process capability..to.and. the.Turner.Martin. box.8 82. Pareto. We. plots.series.Auerbach. chapter.McGraw-Hill.. Percent ..4 6 5..Bothe.6 67. templates. analysis.. analysis.. process. Suggested reading Davis. C&E..V. summarization.methods.6 100..Gryna.York:.time.....and..Wiley.4 13 12.in.0 94.Fundamental concepts in the design of experiments.. diagrams...Chapter..and..Sigma.how..3rd... Douglas.Frank.. histograms.Examples..Juran.were.M..charts.using.Hicks.R..applied.Press.1997. plots. presented.R..Six..York:. Charles.30 major reasons for late delieries.six.Kenneth.&.ed.New.processes.Operational excellence—Using Lean Six Sigma to translate customer value through global supply chains.Kaizen. scatter. end.New..office. the.can. continue..Oxford.examples.1997.184  ◾  Lean Six Sigma for the Office Pareto Chart of Root Causes for Late Delivery 100 80 60 40 20 e tifi d co r c re ti n i vo ce r Ca rie iss ue U n ow 120 100 Count 80 60 40 20 0 Root Causes er t no 0 no r nk n Cu s m to In Count Percent Cum % 73 67..6 16 14.6.show.and.Sons..be... J.. templates. charts.5th.ed.by. of.1999.W.University..as.York:. discussion.teams. Lean. shadowing.New. at..1993.New..Jr.0 Figure 5.some.C.Montgomery. John.Introduction to statistical quality control.. spaghetti.M. our. of. diagrams.2008. James. will.using.York:.common.

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

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

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

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

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

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

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

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

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

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

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

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

or. and. This has increased the leadtime of new product releases from 100 to 200 days and increases development costs by 50%.ranked. .superfluous.can.in. more.requirements.a.more.to.shown.Chapter..that.important. Future Performance: TBD Anticipated Benefits: TBD or.the.the. Root Causes: TBD Required Actions: TBD Current Performance: Insert metrics.suitable.be.total..weighted.one. to..described.deployment.designs.process.the.weighted.meeting.a.poor.calculated.1. financial.total. m .eliminate.and.to.customer. this can be taken from the projects charter.000 annually.of.be. Summary Table. identify.several.10..to.business.enables.lower.a.having.a.The.in.. anner.alternative.than.root.It.incorrect.made.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. if historical information is known.survey.Projects.was.causes.9 Kaizen project—new product marketing research.process.5.000.are.performance.presented.prioritization. and graphs to show current performance baselines of operational. charts.customer.in.higher.6.changes.a..of.Figure.of.6.specifications. Figure 6.methods.having. and other metrics.for.weighting.adding. Problem Statement: All VOC information is not transmitted to product design or additional requirements are added that customers do not value or need.those. or $2.common.listing.

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

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

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able. of. Have roles and responsibilities have been defined to support the improvement projects? 8.key.and.competing.will. improvement. certainly.a.have.scarce.data. we. Have project charters been created to support the change objectives? 6.senior.easily...process.improvements.business.stakeholders.that. be.goals.well-defined.that.been. obtain.work.other..by. and other benefits.successfully.criteria.process. Have process controls been fully integrated into the performance management and control systems? .of.team.not.has.senior.of.1 Change readiness 1.that. several.activities.a.these. larger.resources..to.initiatives.implementing.and.or. an.and.improvement. will.7. by.or.the.commitment.high.that.As.well-structured.In.likelihood.a. to.all..increase.process. Is a communication infrastructure in place to support change activities? 5.1.owner.their.collection. have process workflows been modified and controls implemented to ensure the changes are sustained over time? 10.to.project.require.root.team. not. possible. Table.Building a Business Case for Change  ◾  223 Change readiness Lean. table 7.implemented.team.and. from. process.the..root.improve.a. Are resources available to support the improvement projects? 7.benefits.Kaizen.team. changes.analysis.team. with.breakdowns.successfully.one.a.work.and. stated.within. pay increases. the. Are rewards and recognition systems in place? (These include promotions.analysis.and.their.the.process.have.are.may.there.include.ways.objectives. situation.corresponding.a.more.gain. suggestions.must.causes. Has training been created to provide the relevant tools and methods necessary to support the improvement projects? 9. employee recognition.to.. stakeholders.outside. will.owner.not.with.sequentially.through.and.people.is. Are goals and objectives at all levels of an organization integrated to support change activities? 2.process.be.. it.As.many.Six. make.improvements..process.there.This. activities.the.lists. project..support.Kaizen.methodologies.. the.eliminate.is.are.to.likelihood..must.also.is.a. may.immediate.. if.These. supported.example.that.work. that.a.organization.done.be.their.the.that..countermeasures.work.using.are.important.of.their.several.properly.project.project’s.the.a.but.priorities.to.their.is.management’s.result.a.of.Sigma. Recall. This.may. These.cause.result.to.managers.align.with.having.) 3.team.. their. will. a.. resources. Once countermeasures have been identified.to.realize.other. bonuses.critical.situations..closely.part.because.organization.But.process. necessary.success.identified. agree.This.activities. Have organizational barriers to the change activities been identified and countermeasures developed to mitigate their impact? 4. key. local.critical.an. be. organizational.As. describe.work.local.

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Revenue: . Problem Statement 2. Compensating Metrics 9. Project Objective 3. Other Cost Categories: . Cost-benefit analysis. Summarized Benefits 4. Cash-Flow Benefits 12. Financial Metrics 6.Rework .Scrap . Net Benefits . Project Metrics 8.Increase from Volume . Implementation Cost 14. Resource Requirements 5.Accounts Payable . Revenue Benefits 10. . Total Benefits D.Increase from Price B.Warranty Project Charter Figure 7.228  ◾  Lean Six Sigma for the Office Project Alignment Building the Business Case 1.Inventory Financial Classifications A.2 1. Cost-Reduction Benefits 11.Material .Direct Labor C.Accounts Receivable . Cash-Flow Benefits: 13. Cost of Goods Sold: . Operational Metrics 7.

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

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

level.4.stakeholder. data. than.the.reward. empowerment..ensure.additional.concepts..team.positive.of.This..and.and..Kaizen. have.have. team’s. the.is.negative. been.the. and. Figure.mitigation...plan.the.change.difficult.plans.collect.will.countermeasures..establishing. important.and.of.previous.to.in.tools. these.methods.5.a.These.and.are.analysis. objectives.useful.stakeholders.the.people.potential. solution.in.more.organizational.these.introspective. deployment.execution.key.and.more.a.with.to.each.having.5.solutions.stakeholder.The.analysis.development. impact analysis of key stakeholders.a.concerns.project.the.mitigation.team’s.been.7.side.. oncept.objectives.of.of. not.process.the.an.risk.process.very.systems.been. all.analysis.to.3.to.of. developed. by. can. include. c . front.have.These. fear.first.recognition.In. Kaizen.include.type.results. .project.to.address.analyze. by.require.goals.as.that.Building a Business Case for Change  ◾  231 Stakeholder Group Countermeasure/ Improvements Positive Impacts Negative Impacts Negative Impacts Mitigation Activities Potential Issues Success Probability (Risk) Figure 7. be.necessary.focus.promote. in. its. prior.help.countermeasures.analysis. the.change. considered.of.is.shown.in-depth.These.In.barrier. do. process..countermeasure.people.of. context. a. Also.on.of. A.alignment..an.are.the.7.because.conflicting.On.4.training.information. changes.stakeholder.by. effectively.right-hand..of.effective.aligned. originally.using. An.are. Certain.based.tend.and.key.viewpoints.changes. evaluate. team. situation. minimize.Figure..Kaizen. those. Kaizen. unknown.proposed.4 3.characteristics..a.discussed.to.Figure.. to.organization.project.may. a. ensuring.a.of.and. this.7.Several.and. to.to.efficient.organizational.characteristics.on.goals.and..risk.in.Figures. communicated.it.impact.whose.estimated..promoters.impacts.in. recommended. team.chapters.the.is.its.organization’s.barriers.a.summarized.shown.obtain.resistance.7..high.this.is.priorities.Countermeasures. improvements..is.barriers.this.. of.diverse.be..tools.key.is.of.. the. up.to.busy.7.Kaizen.

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

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

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

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

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

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

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

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from.that. and the evaluation methods. deviations.its.statistical. table 8.a.that.variation. Determine the data collection system.As.of.times.to.a.reference.is.implies.collected.73%). 5.that.of.control.variation. control.a.there.upper.reference.This. including where the data will be collected.with.limit.of. the.percent. exhibit.control.point. week-to-week.the.and..days. Calculate the control limits (standard deviations): +/1 (~68%).approximately. 4.and.we.of..may.of. chart..the. assignable..control.analysis.250  ◾  Lean Six Sigma for the Office C Chart of Average Number of Errors Per Invoice 6 5 4 3 2 1 0 1 10 19 28 37 46 Sample 55 64 73 82 LCL=0 _ C=1.it.size. other. On.rational.99.outside.distribution..interest.of.then. 2.high.878 UCL=5.limits.cause.implies.that.. 6.this.being.because.the.control.subgroup.73. Plot the data and interpret the control chart patterns.In. the.. would.must.then.in.This. the.of.0.6 how to Create a Control Chart 1.989 Figure 8. the measurement criteria.5.its.are.original.if..within.typical.lower.contains.the. to.outside. subgroup.In.a. rational. situation.cycle..an.example.basis. Determine the rational subgroup size and frequency of sampling.e.the. variation. +/– 1.chart.from.addition.workweek.is.is. input or output variable. 3.an.are.In.size.be..probability.mean.a.limits.smallest.be.different.this.calculating.a.the.96 (~95%) and +/– 3 (~99. ..3 Number of Errors Per Invoice Control charts for poisson distributed ariables (counts).the. subgroup.context.if.of. by whom.is.to.distribution. i.of..level.assume. implies.can...five..percent.daily.collection.on.at. Select the type of control chart based on the distribution of the variable.27.confidence.frequency.limits.due.the.established. Select the metric..low.

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

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

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

8 7 5.8 Communicating the proposed changes to management.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 67.6 100.2 100.8 82.6 67.7 94.27 ge iv Ca nc Sc he d La te l de er ie s La rg o el ts iz e i ng M iss m at er ia ls O th er 180 160 140 120 100 80 60 40 20 0 Root Causes Count Major Impact = Demand Variation Major Impact = Lead-Time Variation C an l ce ed Sc or de r ch d he e ul an ge t La e ed liv er ie s lo La e rg ts iz e m M is sin g at er ia ls O th er Root Causes Large lot size Canceled order Missing materials Schedule change Other Late deliveries 140 120 100 Count Pareto Chart of Root Causes for Canceled Order 100 80 60 40 20 0 Percent Team Presentation Summary Panel 1 • What are the new process changes? Panel 2 • Who are the stakeholders and what do they have to do to support the changes? 80 60 40 20 0 er y e iss d s le du a In cc u t ra du le U ow n Root Causes La te l de iv e ch es e ch n nk Panel 3 Panel 4 M Count Percent Cum % 108 80.26.0 Figure 8.1 9 6. 5.25. and 3 Figure 5.6 16 14.5 88. 2.6 80.4 6 5. Percent .6 10 7. and 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.

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

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

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 $32.8 1.6 7.96 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.mentioned.94 $23.actions.8 1.1 1.1 0.0 18.27 20% B 0 1 1 1 1 1 0 1 1 1 0 1 1 0 1 1 0 1 1 1 15 $23.8 1.2 4.8 1.8 0.00 $12.4 $4.6 7.5 1.4 3.40 $13.corrective.7 374.3 6.8 1.7 1.8 10% 1.8 1.to.5 1.9 1.10 Creating metric dashboards (similar to Figure 5. and.2 20.5 1.6 26.8 1.77 $4.8 1.6 0.8 1.5 36.0 30.4 4.6 35% 5...6 2.8 2.8 1.local.8 33.30 $1. discussion.2 1.enable.4 2.McGraw-Hill.6 3.6 2.5 1.50 $5.70 $8.1 14.35 $1.Measuring process capability.of.55 $7.0 7.6 0.1 18.60 $1.8 4.48 $1.metrics.4 0.take.6 2.owner.7 0.dashboards.40 $10.2 0.00 15% C 1 0 1 0 1 1 1 0 1 1 1 0 0 1 0 1 1 1 1 1 14 $30.03 % T otal Figure 8.1 0.2 2.8 3.0 2.that.9 27.6 0.process.was.3 11.5 12.monitor.6 21.66 $2.8 1.R.7 5.0 6.1 3.0 8.0 3.9 5.9 2.5 1. .27 Y es No No Y es No No No No No No Y es No Y es Y es No No Y es Y es No Y es 15 T arget to E liminate T arget to E liminate T arget to E liminate T arget to E liminate 1.50 $4.6 13.2 4.8 0.00 $10.4 2.3 0.3 0.6 16.6 100 % 15.appropriate.6 6.95 $19.5 0.2 7.8 1.3 6.to.8 5.9 1.3 3..2 20% 3.9 0.0 10.0 3.Implementing Solutions  ◾  265 16.2 75.2 75.7 7.1).25 $5.8 1.8 1..2 5% 0.8 1.4 5.work.8 1.5 1.4 131.0 2.15 $0.8 4.metric.2 0.2 1.6 13.4 0.00 $6.the.8 1.Bothe.3 6.0 14.4 2.6 7.0 3.70 $4.4 1.6 2.1 4.5 12..and.York:.08 $0.it.0 3.8 1.0 1.should.3 1.7 0.4 2.8 1.performance.60 1.80 30% D 1 1 0 0 1 1 1 1 0 1 0 1 1 1 1 1 1 1 1 15 $24.8 2.3 18.9 4.4 4.8 36 20% 3.00 $8.0 2.8 1.2 4.8 1.05 $4.status.2 2.4 13.0 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: $14.5 $ 91.00 $0.8 10.5 3.4 5.0 3.0 3.4 99% 97% 95% 99% 97% 99% 98% 95% 93% 98% 99% 96% 97% 99% 94% 99% 97% 98% 92% 94% $27.7 0.9 1.4 1.6 0.4 3.0 0.9 0.7 10.0 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 12.0 0.00 $4.72 $27.3 17.9 2.8 0.00 $20.6 1.0 1.2 9.00 $2.0 7.6 3.9 1.7 0.25 $3.0 4.8 1.maintain.6 6. Suggested reading Davis.4 2.1997.2 0.9 19.4 0.74 $5.a.5 1.7 2.their.0 4.8 5.9 0.New.1 37.team.higher-level.1 4.

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

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

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.

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

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

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

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

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

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

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

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

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surplus or damaged items prior to shipment. Invoice sent to wrong customer or delivery not verified by supplier. Normal 4 Hours Figure A1.4). addresses item and amounts are entered into the system or incorrectly converted by the system.1 Accounts receiable simulation: distribution assumptions (similar to Figure 6. . Order Is Received in Distribution Center and Processed 3. Invoice paid by customer. Normal 8 Hours 4 Hours 3. Order sent to customer. 2. Distribution Normal Mean . Failure to discover missing. Invoice Is Paid by Customer Operations 1. Invoice is not created due to missing information or is created using inaccurate information. Order Checked for Accuracy Freight Carrier 4. Order accuracy check prior to shipment.5 Hours Std. Invoice sent to customer. Uniform Minimum = 8 Hours Maximum = 16 Hours Customer fails to properly receive an order resulting in receipt of damaged items. 6. Customer Places an Order for Several Products 5. Order processing. . Invoice creation. Exponential .5 Hours 7. arrive damaged or late. Incorrect names. Normal 24 Hours 12 Hours 2 Hours 8. Lognormal 48 Hours 3 Hours Order is lost or potions of the order are lost.Appendix 1: Crystal Ball® Software  ◾  289 Accounting-Receivables Distribution 2. Invoice Sent to Customer Order Is Closed Customer 1. Customer places order.25 Hours Maximum = .1 Hours Typical Issues Incorrect quantity or product is ordered. Dev. 5.5 Hours 4. Customer Receives Order 8. Failure to protect order from the environment. Order receipt. Order Is Shipped to Customer Accounting 6. Uniform Minimum = . failure to discover missing or surplus items and related issues. Accounting System Creates Invoice 7.

analysis.has.seen. This.the.evaluate.(VSM).their. cycle.team.time.an.sending. yields.a. this..would.hours.scenarios.assumed.of.was.Notice.time.path.used.an.Notice.workflow.been. assumptions.reduction. time.investment.see. .example.a. of.hours.look.the..analysis.represents.respectfully.Figure. and. a.and.distribution.from.been.A1.a.be.times..normal.A1. that.fell.of.~80.simulated.on.modeling. very.Ball’s. have.time.~98.other.a.useful.a.the.hours.. time.aided. process. time..Kaizen.in..information.complete..for.probability. the.enables. A.the.of.290  ◾  Lean Six Sigma for the Office breakdowns..the. This.by..Kaizen.flow..well. this.net.each.team.should.when.time. evaluate.issues. a.impact.range. events.values.on.to.shapes.analyzed.1.a.by. using.that.This. cash.addition.simulated.each.In.the.analysis.in.~58.120.operational. was.is.the.can.also.decreased.which.can.cycle.cycle.in.operations.the.these.percent.subprocess.are.to.Notice.(ROI).and.of.times.that.shown.contrast.As.their.. high..are. cycle..other.in. This.into.graph.and.invoices. minimum.3.enable.a.an.on..the.4.higher.to.values.example.Kaizen.systems.example.. operational.team.be..such.average.2.that. symmetrical.for.A1.Figure.Crystal.measured. distributions.of.As.be.reduce.as.~140. team.to.cycle.as.represents.for.be.is. metrics.cycle.Simulation.cost..In.accounts.maximum.for.because.to.or. important.cycle..the. the.process. be.to.and.total.by..that.occurrence... statistic.percent.the.in. done. process. contrast. a.of.stream.to.distribution.a.the.has. workflow’s. process.only.40.outside.from.exponential.analysis. analyzed.useful.can.be.likely.of.that.that..provides.create.A1..simulation.the.Figure.compared.calculated.by. to.in.customers.some.simulation.changing.overall.process.an.Also.between.that.the. implies. are.It..The.for.every. right.the.using.Figure.process.is.model.patterns. distributions. distribution.on.eliminating.mean.critical. nalysis.in.receivable.invoices.also.sensitivity.Figure.each.analysis. of.quantitative.the.a.A1.invoices.the. highly.it.example.map.is.to.in.for.Ideally.the.simulation.a.around.is. the.we..improvement. shows.of.of.orders.be.An.total.subprocess.this.standardized. a.customers.note. In.the.times..can.for.map.distributions. Creating a Simulation model The.various.the. software. are. skewed. on.. of. Kaizen.is.is. shown.. a .cost-benefit.workflow.would. very.to. that. in. to. static.complicated.operational.value. distributions.Crystal.quickly.cycle.specification.as.the. various.analysis.frequency.by. These.mean.has.that.in. the.process.time.a.notice.cycle.summarized.events.accounts.also.been.analysis..a.statistics..the. process. time.their..advantage..As.would.on.analysis.shown. effect. relative.cycle.step.different. every..accounts.Also.Kaizen.team.information.compared.of. that. some.advantage.calculated.cycle.would. Crystal.of.using.sending.summarized.transformed.statistical.value..the.cycle..~80.show.It.with.process.Ball. metrics. associated.of. receivable.the.operation.Also..subprocess.additional. This.time.working. a..a.a.total.to.approach.set.that.impact.distributions.cycle.the.issues.cycle. from.to.were.return.1.is.time.receivable. accounts. process. Ball.specification.as.ways. perspectives.. at.sending.shown.customers.to. impact.receivable.

00 4.10 0.00 13.00 11.00 15.00 Uniform distribution with parameters: Minimum Maximum Normal (E12) 8.00 50.00 3. Dev.20 0.00 Mean Std.50 10.00 Probability Crystal Ball® software is a global business unit of Oracle® Corporation.00 10.70 0.60 0.2 Some Crystal Ball® software statistical distributions.00 Normal distribution with parameters: Mean Std.00 Normal distribution with parameters: Figure A1.40 0.00 6.00 2.00 16. Normal (E11) Normal distribution with parameters: Mean Std.00 57.00 0.00 16.00 3. Dev. 0.00 4.00 Normal distribution with parameters: Mean Std.00 8.crystalball.00 4.00 Exponential (E8) Probability 39.00 12.00 20.30 0.00 8.00 Mean Std.00 12.00 Exponential distribution with parameters: Lognormal distribution with parameters: Uniform Probability 8.00 40.00 .00 4. Dev.00 14.50 0. Probability –10.00 10.50 0. Lognormal (F10) 8.00 12.00 Rate 2. Probability 0.00 51.00 30.00 6.00 9. Dev.00 15. Dev.com –2.00 9.00 45.00 18.00 0.00 42.80 –3.00 48.00 2.00 60. 24.00 48.00 0.00 10.00 54.Appendix 1: Crystal Ball® Software  ◾  291 Normal Exponential Probability Probability 0. www.00 6.

in. predicted. analyze.Once.approves.A1. reductions.hours.49 182. value.of. advantage.compared.07 0.com Figure A1. various.sending. was. methods.00 Hours 120.time.is.91 139.without..associated.a.in.53 0.that.. of.that. then.can. process. analysis.team.which.changing.process.00 Target=80.has.fact.of. customers. less.06 Probability 0. scenarios. the.is.15 0. time.workflow.for.56 98.A.Kaizen. Recall. hours.actually. process.the. than.03 0.missed.times. for.00 100. versus..crystalball. improvements.process..with. deviation.05 0.00 70 60 50 40 30 20 10 0 Frequency Trials Mean Median Mode Standard Deviation Variance Skewness Kurtosis Coeff. augmenting. actual. of.dynamic... cycle.has. a. This. subprocess.metric. .. is.00 80.As.have. invoices. overall.31 --13.cycle.hours.team.and.case. studied.3 Crystal Ball® software cycle time analysis. ~12.useful.cycle.00 40. contributor.of.by.improvement.customers.to. to. that. of Variability Minimum Maximum Range Width Mean Std.00 LSL=40.shipping.14 58.07 3.average.simulation.business. www.that. shown. patterns.43 Crystal Ball® software is a global business unit of Oracle® Corporation.04 0.00 USL=120.could. improvement.~24. Error 1.the.process.01 0.time. a..in.04 0.an.the.would.this.cycle.02 0. building. time.with.an.average.a. time. cycle. the. The. standard. largest. within.. to.an.in.Kaizen.simulation.customers. using.to.management.be. recommended.reductions. workflow.292  ◾  Lean Six Sigma for the Office Cycle Time 0.team. sending...orders.00 98.and. stream.00 60.45 80.example.48.Figure.associated.can. cycle.a.1.identifying.understanding.a. be.invoices.the.000.subprocess.

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key. Kaizen.in.48 Cash..174 .activities.236.projects.&.technology.improvement.172.75 ...time..106 .77 .219.improvement... organizational..(SMED). value...162 Compensating. interpretation..business.map.219–222 . organizational.184 ..analysis.235..235 .in.Lean. Kaizen.226..and.247 .175 C-charts.268.223–224 ..process.. Crystal.322  ◾  Index Business.of. performance.case.69 .teams.and.249 .services.improvement.28 .252 .to.E). (continuous).management.alignment.charts..and.. unnecessary.and..245 ..concepts.255.Sigma.23.flow.analysis.to..231 ..20..Ball®.rewards. cost-benefit.161 China.charts.management..range..sampling.margin.245 ..33 Control.technology.events. format. avoiding.stream.recognition. identifying.232 ... c-charts.expenditure..212 .248 ..analysis. creating.and.and.and..295.(CE)..268 Case..125 ..45 Cashflow.184.charts.219 Change. 215.180. data.supplier..26 ..282 .249 .variables..products.41 Cash..67. change...procedures.for..236.222.208 Consensus-based. opportunities.resistance..210–211 Communication.247. work.121 ..in.and..and.analysis.planning..factors..barriers. activities.22.48–49 Competency.tools......164 .46 Checklists.projects. information.. process..252 Change .and.reasons. individual-moving. lack.245 C Call..softwear.value-adding.collection.274 .activities...distributed.improving.building.(IT).. control.software.for.Lean.change.11.198 Capital..initiative.eliminating. bureaucracy.. project.....key.and..64 Concurrent.readiness. process.278 Continuous. international. for.219–238. 6..Six.and. infrastructure..232 Change.and. 65–66 ...38 .overview.product... for.227–228 . reducing. corporate...of.222 .variables.Kaizen. reducing.223.32 .64–66...team.process.for.migration..and.and.prioritizing.transition.statistical.engineering.296 .process.organizational.225 ..and.226 . key.gross.160.91 .setup..of. calculations.diagrams.246 .and.. key.71 Change....support..(BVA).223–224 Change..flow..74.... p-charts.. (pass/fail).(VSM).236 Comparison.233 .studies.system.priorities..and. processes. conflicting.team.Six.. information.282 ..96 ..operations . communication.of.233 Consultants.. control.114 Cluster.Sigma..(IT)... readiness.67 .278 Channel.271 Competitors.and.282 .or.236 .250 .222 .....244–245 .stakeholder. strategy.. cultural.workflows.164 .234 . process..281 ..for.binominally.36 Cause-and-effect.and.metrics.and.workflow.systems..272 Communication.normally.7 . prioritizing.231 .244. overview.... Kaizen...20 ........and. Lean.61 Canceled.173 .workforce.28.229–232 .centers.cultures.67 . Lean.152 Common....30 .38 Complexity. Minitab®.37..distributed.165 .and.(C. scheduling.concepts.a.237 Communication..effective..reducing......172–174.model. Kaizen.orders.increased. seven. reduce.and..stakeholders.operations.system..

root..38 Cycle..other.241.and.of.259 . process.22..231..effects..and.4th.31 .223.systems.designs. effectiveness.38 Customers.288..variables.226..new. brown-paper.177–181 .48..events.64 Core.types.and.of.value. interviewing. business.meetings.operational. modification.cause...cause—late.reduction.147 . requirements. purchase.metrics.visual...of.methods..design.259 Core.migration. elimination.. requirements.249 . analysis.audits..and.136..258 .. maintenance....Index  ◾  323 .sold.solutions. types. implementation.287.253 .tools. process..(COGS).164 .259 .and.distributed.167 ..239..5S.43.245.or... building.71.(C. at. box.reporting.tools.172–174 . new.data.and.stream. complaints.analysis...(huddles)..verbal. cycle. key.250–251.222 .236–237.. 255 . specialized.199 .avoidance. 263–264 .211.analysis.and.137 .. sensitivity.. new.financial.programs.tools.team.&..a.methods...190 Customer-facing.of.map.229 Cost.274...290 .process.chart..and..and..41.and..293 .organizational..software..169 ..times.Ball®.245 Control. written.194.information. Kaizen..and.82.258 .. transfer.281 .mode.and.214.instructions. five-why.... 259 .testing.. 289 Countermeasures.sustainability.227–228.226.120.E). failure.64 Cost.of.and.. job.73..245 ...242–243.for. modification.55 Crystal.282.. changing. value.batches.of.286..layouts.and..demand.. control..of.188 ..technology.collection...286.stakeholder..87 .services..... 200..exercise.77 .255 ...shadowing.diagrams.286 . implementing.....245 . high. histogram. structures.impact.37 Control.. variation.288 .map.of.36.. statistical.goods.259 .. and..87 d Data.291 .products..reporting. reducing..work...282 . inventory..and.233 .242 .analysis.. control.197.245 .147 Critical-to-quality..258 .279 .(FMEA).analysis.process.analysis.or. satisfaction.analysis..285..241 Control..satisfaction.down...(IT).analysis.(VSM). equipment..261 .165–166 .259 ..patterns.259 .259 .232 .improvement.175–176 .166 Cost-benefit.root.288 .stream.290–292 .limits.solutions. 258 .of.flow..289.(CTQ).194–196 ..process. new.impact.285–294 .278 ...285.and.290 ..of.. control. cause-and-effect..times.and... steps.charts..graph.improving.modified.portions...259 .plot. information.characteristics.of.296 ..258 .operations.of.. group.levels.and.11.. r-charts. mistake.of. long. sensitivity...systems.and. implementing..258.228..92.questions....setting. key..up.deliveries.calculating..250 .38 Customer..Poisson. X-bar. 288 Customer.plan.and.263.inspection.222 .(CTQ).and.149–150 .level.251 .240 ..analysis.and. training.. Lean..of..292 ..148..proofing.219.tools.259 .analysis.245 ..263 ..46.. supplier.and..40 . errors.. Kaizen.141–184. Lean.distributions.250 Control.....analysis..46 Customer. for. value.the... cycle.time..27 Critical-to-quality.procedures.(VSM)..62 ..

(equipment. exponential. process.95 .288 .operations...37 e Economic..strategies.154 .104 Employee.94 .(EAI).turnover.170 .mapping—SIPOC.and.analysis.data.. spaghetti..104. risk.rate.analysis...impact...288 .234 Deployment.organizational.229.178.66 Demand .added......(FMEA).(VSM)..14.. standardized.5.of...55. level...and..222 .map... process.. spreadsheets.facilitator.of..types.191 Failure..9 E-mail..series. methods. 67 Design. patterns. time.131–135 ....analysis.and..117..132–133 .151.258 Failure....222 .98.and.36 Exception..(DFSS).training..modes...11. Pareto.continuous..12 .106..(EVA)...pricing. bottom-up.210 .execution...failure.36 F Facilitators.264 ..(DMAIC).minimizing.90 ..and..158 ...for.. in..31 ..methods.255–257.department....296 Defects.89 Error.leaders...and..people).87.(DFM).280 Deployment.31 Excel.methods. Kaizen.Manufacturing... control.characterization.in. methods.graph.. normal.15 Everyday.200 Finance. targets..for.222 English. variation.46 Design... common.105.conditions.Six. example..diagram..reducing.143 Data.reports..methods..130 Fact-based.288 Diversity.280 Deployment..language.121.66 Design.services.89....163 ..13 Design. uniform. tools.11 Event.and.loading..191 Expense.14 Deployment..119 Financial..prevention.200 Finance... variation.151 .project.service.development.options.planner.responsibilities..221.of.demand.66.93 .and.269 Distributions.. (FMEA)..269 Downtime.effects.effects.130 Event.simplification..66 Design.295 .of..and.of.improve...collection. process.123 Equipment .for.points..19...low. prioritizing..roles.256 Failure.67 .258 .137......standardization.31 Deployment.296 ..and. methodology. scatter....reduction...40 Deployment.Sigma..in.(DFSS).analyze.12 .chart. 240...Six. methods.causes..90 ..analysis.change. level.12.high..mode.mode.66 Design.295 Dell.percentages.257 ..195 Error.value.139 .priority. hierarchical.. 135 Drumbeat.116.plot.290 . template.and..10–16..(RPN).process.67.154 .209 Empowerment. templates..and..15..reports..40.16.198.events.324  ◾  Index ...255..facilitation.12.errors.61 Define..rates.288 ..160–162 ..151–159 .25.. top-down..170–171 .of ..278 Entitlement.integration.19 Enterprise..time....rating..champion. purchasing..or.89.measure.168 .115 Finance. aligned.Sigma. operations. value.12.196 Employee.258 Failure.application. classifying.product..stream.52..94–95.tools.

and.253 Information.case. sustaining)...and.activities..278 .224 . identifying. regulatory.test.(sorting.114 Individual-moving.examples...19 Hiring.financial..127.behaviors.language.negative.methodologies.change. project. reward..233 ....metrics... changing.209.221 India.82 Five-why.statements...235.to... supplier. process.214 Financial.296 Generic.287 Graphics. economic.quality.high-level...173.financial.improvement..Index  ◾  325 Financial.standardizing.solutions)...48.reporting.teams.workflows..and.267–276 Improvement.32 Improvement.166.risks...80 ....263 Improvement....(I-MR..209 Histogram. sorting. 145.assessments.54 Generic.a..of. through. standardization.22..233 .261.150 .282 . change..show...factors..range.breakdowns.167–168.impact.objectives.31.233 .new.sheet..statements—profit-and-loss.172..209 .278 .212 .using. technological..and..89..219–276 .team.process.defect....and.55...in.. skew..29. scheduling.silos”.risks.recommendations.projects.and.32 Global.chains.. steps.174 Improvement.Review.improvement.and.208.(HR).122.statements—balance.282 Incentives.53 Improvement.operational..90 .in....teams..and..233 ...solutions.of.change. (for.prioritizing.......46 Financial. order.232.. reinforcing.39 High....workflows..improvement..261–262 “Functional.behaviors.risks.167 ..flow..23 ..level.expert.285 ..165–166. process.32 Information.methods.137. Kaizen...208–209.14 h Harvard.. processes.184.projects..36 Financial...233 .resources.... identifying..201. process.191 .8.risks. worksheet.Kaizen.24 Financial.235....272 i Immediate... building.168 Human..202.reports..workflow...road.23 ...breakdowns.190 g Gantt.and.team.233 ..81.46.service.and.of.57.belt.supply.32.280 Financial.209 ..275 Global.shining.202 Five-S.264 . implementation. self-discipline....forecasting.for.analyzing.risks.down....234 ....recognition.19 Goals.22 . Kaizen.165 Follow-up.219–238 . customer..195.115 .3–110.53 Global..48 Financial. cultural..map.80–81. 258.25 .Business.process.process.risks.breaking.charts)..200–201..metrics.detection..38–39.66 Implementation. alignment.234 .and.implementing.125 ... organizational. 184..167–168.209 .282 ....53 Financial.and.activities..setting..charts.193 Green. process.(5S)..225..236 .and..event..elimination. identifying.outsourcing.43. statements.230 High..improvement.143.82 ..events. 41–42 Goodness-of-fit.analysis.in..positive.operational.systems.business. process...and.167..charts.activities..113. 247.system.233 Implementing.89 Hindi.systems.opportunities.follow-up.

7 Kaizen.159. reduce. data.and.. building. as.collection.176 Just.92 Job.15.changes..letter.data.operations.preventive.and. 277–279 . conducting.event....work.175–176. defining. total. reduce.136 ..demand. mistake..and.. 120.physical. systems. 5S.32 .. change..4–5..182 .233.level..of.methods.technology.investment.247.eliminate.124. philosophy.77 .80–81 ...mistake-proofing.239 .. reduction.of.80.92 International..38 . ISO.Institute. obsolete.....14.waste..level.157 ..flow... second.orders..179 .326  ◾  Index Information..and..data.develop.and.reasons.. work..implementing.tasks.cycle..181 . level..96–98 .272 Internal.operations..78–79 . prioritizing.124.137 .setup.material.methods.collection.. waste.change.125.60. process.process.shadowing.222..59 . third.27 Internal.methods.251 J Japan.135.level.......sizes.121 ...195 .269 Inventory..53 . control..(JIT). supplier.77 .227 .84 .76 K Kaizen. efficiency..84–86 . apply.networks. strategies....lot...proofing...reduction...and. continuous.a.prioritized.standardized.139–140..maintenance.19 Job.37 .9001.projects.requirements.(ISO)..quality.utilization.137 .data.platforms. major....cycle.59.and.improvement....and.237. service.of.5S..of.112.and.19–20... deployment..and..to.278–281 .designs.demand.(IT). asset.82–83 ...service.management.240 Internet.37 Invoice...268 Initiatives.time.workflows.and.. link.239 .high . canceled. ISO. implementing.165..4–7 .(SMED)..prescreening...ration... balanced. high. ISO.9004.128 .specifications.116 .vs.198 .cause.of..for...77.investment. waste.94.105 .177 .external.158 Job.177–181. excess.configurations.4.. balance...and..239 .111–218. operational.of.process.134..9000.92–93 Just-in-time..103..26 ..systems.candidates.198 .182 Inventory....times.stability.payment..time.234. reorganize. problem.and.89 ..125 Japanese.22.analysis.31 .... apply.in..24.135.the. checklist..105. communication.case.of.operational..improving.(Ys).175 .177 Inventory... analysis.. activities.and.191 ..seven. communication.data.66 Interorganizational.major.204 .76 . worksheet.flow. analyze.105 Infrastructure.and.tools.180 .Standards. 275...improvement.types.and.material.203 Invoicing.188 Internal.196 . analysis. stable..for..178 .40. improvements.235 .24.273 .60 .131.Internet.on.. information.90–91 .....(JIT).. first.analysis.94–95 ..work.turns.shadowing.language.in.improvement..times.analysis.operational.60 Inventory.97.business.. 76–98 ..systems.. process..87–88 .142 .30..and...137 .analyzing.189 ..239 ..time.125 .183 Inventory. root..method. standardization..136 ..

.127..for..alignment.187 identifying.with..Sigma.55 . . .charters.and.improvement.process.training..organizational. facilitating.analysis. 131–135.layouts..240 ..and..231 .(VOC).196–198 scheduling.118 ..36... organize.maps.breakdowns..233 .115–116.231 Lean.of.277 . ..change. .score.improvement.and.. ...process.local.151. voice.with..and.118. 207–209 project.29. implementing.Index  ◾  327 data.train.personnel... ..organizational.277 ..222 .. project. and.(NPS).and.25..team.charters. goals.130 .projects. deployment.the. objectives.Kaizen.of.goals.of.and.129 .across.and.116 rapid..and.117.change.212 Kaizen..data.objectives...of.286 control..stream...115 .solutions. facilities. . obtaining.activities.workflows..analysis..teams.control.129 failure.128 .202–203. video..chains. .222 transferring.195 data.of. .and..and.root. project.and.282 .113–124. sponsors.supply..5 Kaizen.8. .263 .stakeholder.134–135. 141.280 project.analysis.best-in-class..steps.effects.137 measurement. . .and..for.agenda.examples. .119–123.methodologies.and. project.and.improvements.for.with.causes.254 net. obtaining.118. .and..and. activities.50 .63 Kaizen.. infrastructure..and.212 implementation.23..233 six.205.. Kaizen. supplies. .12.and....22 .127 roles.financial.127 root.221 consultation..product.26.collection. ..and.42.and.235. ...readiness.111–112.118 training.and..138 ..operations.and... .229.. project.Six. .32.114 . strategic.cause.and.prioritizing.256 general.155 process.131.. 121.process.objectives.122 .mode.conferencing..26 Lean.153. . ...116 .177.182..development.alignment. communication.deployment...analysis.and. conditions.transition.... ... .221..191 improvement.improvement.160.charters..risks.global.. new.and. and.team..risks. 269–270 .analysis.responsibilities.. worksheet.234 implementing.112 recommendations.of.solutions.experts.and.. .and..chains.128.across....and.and.190.. rapid..224 .analysis.124 . strategies.with.. process.in...of.136 analysis.163 Kaizen.123.components..277 .of.and. kickoff. 269 process.leader.audio..and....of. ...events.of. .220 analysis... planning.138 facilitation. . .process.of.marketing..workflows.180 empowerment..and.personnel...115... .. .promoter..and.114 ..36. schedule. objectives.220. .185 change.measurement.15 .activities.129–130.277 .267–268 . preparation.. opportunities..team.(FMEA).119–120..122 ..54.identification.system.. . improvement..three. .for..126 .of.global.customer.259 .equipment.characterization.organizational.124 . .....22.... support. process.. .supply.and.tools...and.30 Lean..research. international.232 evaluation.26.members.workflow.questions... ..189..event.and.229...and.274 .. 139 key. follow-up...and.examples..184 decision-making.223...275 . .117. . prioritized...255 support...129 ..139.215 process. .improvement.activities.goals.225 .128 . 234 . evaluating.224 communication.and. value.collection. .229 process..for.213 .117. .126..components.126.team.258 failure. alignment.workflows. alignment.233 . strategic. operational. resistance.200.of.114 ..and.causes...116.22.259 roles..responsibilities.

. basic..25 Lean.10 .62 Kano. performance.44.. integrated.14 Lean..137..296 .. changing.financial..impact.Sigma..change..of...14 Lean.improvement.Implement.19 Kotter.4 ... analysis.24.across.268..11 Lean. excitement.269 Lean.(VOC)...philosophy.96.metric. culture.46 ...328  ◾  Index Kaizen.258 ..metrics..processes.masters. major.67 .metrics.45.and..62 .level. operational.222 .282 Lean.. rapid...Dr.of..differences. initiatives.19 Late..45 Lean. activities.61.(KPIVs).John...24 ..62 Key.of. prioritizing.280 Lean.analysis.of..160.change.global.39–40 Lean.discussing.conducting..Kaizen...approach..31 ....63.269.improvement....of.98.expert.Lean. deployment..268 Kobayashi...44..22–25.. initiatives.variables..concepts.opportunities.and..90 Lean.230.collection..focus. reducing. cards...90 . common.workflow.177 . concepts..62 .analysis.and.reasons.supply... process.32 .268.90. examples.23 l Language.methods..237.242 Key.workflows..200 .production.methods.and.71..initiatives. reduce.time..needs.of.the..analysis.and.Kaizen.stakeholders. Lean..184 .31 .198 . metrics. Step.267.82.42.... communication. six.conduct.275 ...Design.231 . improvements.68.time.system.78 Korea.process. tools.31.8. Step..improvement.(HR).3:.105 Lean Six Sigma.metrics..70.characteristics.Sigma.and.136 .of..184 Lead.295 .tools.and.101 Kano.46 .180...223.customer... data. tools..191 ..222..233..design.112 .and..7.for.of.49 Key...128.of..41 Lean..125.of. process..274 Lean.61 Lean.and.methods.definitions.(listed).the. human.5S.240 ...46 .needs.69.Six...136 ..event. impact..and..46 .5. satisfaction.and.137 .process..57 .and. 270 ...125 Korean.100.networks..assessment.280 .projects..viewpoints.23 .23 .Six.workflow... control.236 . Step.objectives... process.242 Key.. implementing..variables...Six.236 .195. marketing.. diverse. behaviors.and.and.57 ..and..P.. financial..4 .29 .64 . 18 .2:..of.Kotter..19..deliveries.1:..chains. supplier..strategies.. projects.and...224 .138 Lean.(DFSS)..281 .28 Kanban.26.event.. operational.... organizational.output.32..John...for.205 .plan.46 . procurement. inventory.of. operational...P.220 .102 .24 ..46 .. methodologies. deployment.240 .align.. sales.231 . process..135 Leading Change by.cultural.common.language..143 .needs.and..processes.36 . voice. process.32.229–232.. performance. Kaizen. concepts.resources....and...191.setup.events.189.improvement.initiatives..Sigma.complexity...operations.metrics.deployment.55 ..event.. product.(KPOVs).input. process.process...46 .(SMED)..changes.team.of..evaluating.30.the..solutions..and..level.and.needs.5 Lean.274.and..202 ..66 .77.55 .122 ..46–49.129 .

39.system.variation.Kanban. low.metrics.methods..teams.cost.22. performance.12.improvement.16 ..274 Lot.Six...35 Leanness.and..the.materials.Lean..operational. financial...46 .26–32 . high. project..robust.charters.sizes.the. analysis.277 ..and...111 ..of.26 .32.map.Sigma.197 ...and.key...29 ...Six. implement.VOC.office..workflows.TIme.of.Six.29 .complexity.46 . mixed-model..Six..68 Lean.and.Just. strategic.to.elements.(leadership. manufacturing.Just..supply.33 .and.50 . low. four.15 .metrics.workshops....metrics. continuous..of.. performance.tasks..complexity.Teams.70–73 .champion.67–68 .85.Basics.98 m Maintenance..16 . global.Kaizen.system.. Lean.teams. flow.106–110 .38 .for...unnecessary..conducting....98–99 .24. evaluating.39 ..Six..97 .controls. systems..21...cause. project.117 . reduce..of..the.process.. teams.(VSMs).metrics.of.and.29 ..and..Sigma.event.update.78. continually.process.. and).30.selection...and.case. problem-solving.37.and.46 ...and.and. business. reducing.assessment. develop..product. rapid.and.visual.and.and.of.100 Lean. projects.and.64–66 .internal.33 ....112...work.. 102–104 . Kaizen.change. project..41 .69 .elements.76–98 .Kaizen.38 .58 .networks.metrics.high-level.-.Sigma..process. implement.222 . deployment.102 ....281 Lean.(VSM). visual.technologies..and..and..key..of.277–278 . supplier.64 .Sigma..training.product.of..21 Lean.Index  ◾  329 ..and.31 .workshops).(Voice.logs....environment.stream.and.23 . management. 24 .teams..41 .142.process. 63. simplification.of.61.process. problem-solving.41.planning.a.14. implementation..reducing.29 .and.. implement. supply.Sigma.96–98.Maps. continuously.scheduling...29..process..an.in. understand.. ten.(middle.business.39 .29 Lean.team..the.Stream..in.process.pull.Six.26.system.and. reduce..38 .Sigma.36–38 Lean.improvement.of..the.(JIT).279 Lean.Time.28 .(JIT).and. communication..methods. technology. plan.initiative. building. high.unnecessary.. eliminate.279 .Sigma.161 . root..cycle. ten.31 .training.82–83..27 .61–63 Lean. deploy.32 . Customer). tools...demand.implementing.. create...Six.. alignment..capacity.flow.in.systems.14 Maintenance.of.of.and..analysis.46 .yields.94 Lean.systems..212 ..220 .and.measurements.Sigma.alignment.. service.and.26–27 Lean.identification.53.change.designs.operations.to.22 .100 .16.information.measurements.networks.. elements.69 .55.(VOC).pull. benefits..29 .chain.100–101 . voice...30 . Lean.74–75 .tools.operational. eliminate.systems.chains.30 .37 Link.time.value-adding..105.3–4. strategies.operations..138 .83 Local. team.24.Value.14.of.. create.67–68.data. planning.of.deployment. project.steps. compensating. in.work.event.teams.complexity. executive. Lean. value....content.Teams.32 .customer..schedule.(VA).32 .36 .update.and.and..technologies.. low.Six.elements.46 .improvement.support..methods.57–110.event.supplier.process.operations.32 .systems..38 .system.tools.38 .135 Major.143 Lean..methods.97 .and..control.55 .

and.64.modeling.253 Non-value-adding.complexity.. process. common.. reduce.268 .flow.296 .99.46 Market.66 ...penetration. creating. simplification.153–154..system..product.improvements.tools.232 .240 Malcolm..and.135...74–75.195.254.reduction.102 .29 Minitab..265 ..data.reporting.222 Mistake-proofing. define.91 .189–190 .296 Minitab®..36 Metrics.criteria.and.187 .and.Quality....Baldridge.2. prioritizing. Lean..stream..207.analysis.softwear..28 . process.240 Management..(NPS).Companion.280 .system.296 .127. reproducibility.system..66..and.214 New. project. resolution.and. control...264.129 . linearity.283 .. key.testing.. operational. Kaizen.and...255 .23...charts.46 ..scheduling.191.customer.205 Materials..toolsets.Minitab.error.297 ..proofing.mapping.the.increasing. Lean.66 Mistakes..37 .codes.29–30 .87 .job.295 Minitab®.and.cycle.and. Kaizen..191.258 .196 Nonrandom.using.process.characterization..shadowing.295–297. Companion.Inc.by.and..event.120 .procedures...206. methods..research.229 . accuracy.254 Metric.92. balance.254. Lean..language.workflows...schedule.chain. control.and.control.254 Measurement. error.201 Mistake..level..chart. inventory. creating.material..84–85 .and.66..263 Metrics . strategy.of..7.and.example...270 New.142.185 Mandarin.204 Marketing.research..team. buffer..and.inventories.37.Six.(VSM)..and.255 . stability.230.38..statistical.. market..61 Mitigation.89. process..204–205.162.53 Malcolm.features..Sigma..of..Software...methods..230 New..example..operations.. functional.32 ...87–88 ..285 ..and.scheduling..strategies.19 Market.295.. pull..254 ..278 .297 Minitab®. processes.Baldridge. 198.85 Mathematical. Lean.137 .and.160 . development..84. Pareto. Kaizen.times. eliminating.alignment..team..products .dashboards...project.plans.295 .. Pareto. process.278 .168 ...and.and.173. voice.66 .products.57..(NVA).of.....variation. Kaizen..45 .20... value.issues... Companion..254..21 ..system.of. process.189 n Net.(VOC)... method.. 176–177 .Six.249 .11 ..190 Miscommunication.analysis....296 .36 ..systems.score..and. balancing.award..softwear.254 .chart.Statistical.higher.295 ... 281 McDonald’s...promoter.analysts. 253..Six.and..205 .changes.254 .Sigma.of..supply.(Appendix.and.57.flow.research...reinforcing. analyzing....29.of..296 Minitab®.330  ◾  Index Major...statistical.254 . policies..207 ..Sigma.98..a. repeatability.66 .156–157 .map....205–207.247..7 .. operational..and.components.stakeholder. financial.patterns.and.263.106 ...chart.231 Mixed-model..examples.44.265..102 Measurement.255 . 295–298 Misalignment...Quality..analysis. design.2).Quality.teams.. process... standardization..data.behaviors.improvement.177 .

143.jobs.the..233.workflow...147 . standardizing...methods.barriers....Index  ◾  331 .64 Overproduction. reinforcing.145 Operational.. inventory.(units. time.time. transportation.. limited..research..63 ....operation.change.63 .team.change.44 Operational.. roles. Kaizen.systems.269 Operational.41 Operational.data... production.232 Organizational.57.for.272 Organizational.task.content..(equipment.. creating.38–39 .31 Operations.55 . critical-to-quality.247 Performance..improvement..activities.(CTQ).277 .145..and.61 ...map.environment. 70 .168 P-charts. people).71 .responsibilities.cultures.percentages. 69 Performance.office.of. setup.breakdowns..themes..supply.288 Outsourcing.per.investment....43 ...and.180.productivity.and.stream.metrics .184..themes....event..cost.structures.270 ...32 Office.of.69 .processes.. measurement.55 Performance.70 ..69 .gaps.or..environments.71..11..(CTD)..differences.of.19.of. simplifying.60 Office.chain.Excellence.268.61 Office....53. analysis.37 Operations ..128 Operational.31.space..safety.percentages...incorrect..and..221 Organizational.82 Pareto..69 ...to. rapid.environments.. mistake.information.19. value.or.267 .188 Outsourcing.. identifying. Lean. about.58 o Obsolescence.change .within. effective.269.269. critical-to-cost.(OR). Kaizen.work.55 Organizational.goals.Corporaton.required.defects.chart.119 Operational.63 .measurements..exercise.84 Oracle®.in .floor.value-adding.. mathematical..18..W..269 . implementing.event....system. voice.expenses.themes.(VSM). percentage.31 .by.analysis.and.70 .measurements.25..286 Organizational..chains.134 Operational.182.of.and.(CTS).behaviors....stream..supply..283 Organizational.195 Outliers.objectives...Martin.times.63 ..63 .training.metrics..39 .from...the.or.113 .274.assessments.throughput. value.. prioritizing..55 Operational... minute).254 . global..232 .(VOC).277 . process. brown-paper.269 p Packaging.26 Operating..247 Organizational...cycle.and.themes. James.and. cultural.(CTC).168.and.of.performance.224 Operational Excellence—Translating Customer Value through Global Supply Chains.products. repetition.253.collecting.discussing.60 . critical-to-delivery.financial.proofing...lines.154 .. sending..map...and..40 ..mistakes.61 Np-charts.services.184..69 .rate. reporting..information.. scrap..282 .168 .11. critical...29 .169..61 .268 .(VSM). dysfunctional.production.projects.. allocated.customer..39..69 .reports.29 Performance..9 Organizations.of.workflows.24. Lean.(VA). rework.40 Operational..69 ... downtime.percentages.149–150 .common.new.to. Kaizen.stability...120 Operational.

38 Prioritized.258 PowerPoint.improvement..224 .effects..57 ..inputs.137 .196...245 Process.290 Process .and.281 Process.operations...240 Process...and.. 195–218.241 . changing..10 . root.247.231 . 194–196 ...287.conflicting.242 ...185.outputs.complexity..196 Process. Lean.163 Process.workflows..and.inspection.121....202. measuring. failure. lack..44 Process.. reorganizing..variation.168..30 Process.walkthrough.243 ..workflow. control..required....and...36 Poisson...process.barriers.change.control.122 Process..223 ...53..process.barriers.information..supply.189.222 .using.141 ..configurations.of.control..190. organizational..234.... excess.analysis.235 Process. root.tools.147.Excellence.audit.. collecting.design..standardization.analysis.148..242..295 Present.163..and.32 . organizational.274 Process.82 Process... impact.area..control.243 .changes.57 ..systems.243 .training.and.225.of... lack. methodologies..189 ...to.78–79..mapping—SIPOC..strategies.tasks. floor.243 .methods.224 Process. mistake..82 ..to.185.79 Pilot.owner.and.22. poor..workflows..documentation. opportunities. implementing..analysis..57 Process.characteristics.222 . examples..240 ..teams.194.. cost-benefit.distribution...procedures)...57 . reducing.analysis.of. simple.264 Process... 5S.effect..196–198 Process.operations.teams.cause. continual. full-time.22 Process.102..technologies.process.failure..controls.improvements.240 .worksheet.of..122 ..analysis.237 .237 Process. strategies.. analytic.135 Process. common.....process.153 Process.242 . implementation.and.layouts.standardization..waste .to.256 ..223.332  ◾  Index Physical.levels..288. 199–211 .269–273 .activities.136 Probability.of.119 Process. work.sustainability...197 ..185–193. variable.153.training.7 Process. common..240.60.prioritizing.mapping.30.common.optimizing..procedures.7..279 . overproduction.process..263 .78 .222 ..283 .levels.46 Priorities.procedures..186.inventory...212 ...152. employee.191. statistical.149.200 Process.methods..findings. across.work.Lean.organization.241 Process.changes.243 .developing.study.breakdowns.proofing.eliminating.213 .improvement...audits.experts .effectiveness..worksheet..264 .improvement..reducing..271 . scheduling.243 Process. training.57 .updating.160–162 Process.57 .. office.(SPC). key.261 Pricing...and.of.analysis. training. audit...simplifications.analysis.155 Process.236 .236...and..scheduling.185–193 .questions...151.change.44.239.characterization..240.(floor.. obtaining.242. organizational. implementing.137 ...demand..104 Process.processes...support...mode.281 Process.. Kaizen. elimination.of.tool.242 Process...of.227 .. identifying.188–189.event... part-time.approach...10 Process.151–159 Process.141. and..global.28 Process....119 .243 .60 .253 Potential..226.and..cause.on.. organizational....243 .data. poor.improvement.layouts.distribution.examples.lines.(FMEA).tools.32. 233..and.analysis.for.

research.environments...43 ...and.operation..235 ..204–205 .marketing. new.data... Minitab®...... breaking.14.design.analysis..153 .173 ... information.systems.chain..and.product.59 .time.129 . outsourcing..119 .motion.. project... prioritizing. financial.yields.72. Kaizen.or.47 Project. financial.279...69 .. pull.alignment.charters .115 Product. waste..model. waiting.operations.complexity... Lean.market.50 .and.material..of.proofing.24.metrics.119 .map. financial.softwear.proofing .41–42 ..41.and.27 .measurements...and..202–203 .goals.plan.of.296 .57 Process.142 .receivable.controls.57..(VSM).144 Process...identification.employees. cost-benefit.by.113 .57 unnecessary... transfer. value.197... goals..220.200–201 .. layouts.203 .and. prioritizing.and... Lean.153 .mistake. product.61 seven..processing.of.191 . example.and.37.36.and.models.58 . waiting.examples.and... .55.. objectives..stream.40 .43 ..identification.137 ..150 Product.9 .of.50 .151.289 .map.... changing. office.and. operations. collect.supply..233 .199–211 .common. new. breaking..18 Product. preparation. outsourced. financial.and.the.55 .assessment.36 .assessment.management.. operational...transport.business.tools.redesign..42 .supply. hiring. control..Kaizen.control.8.workflow. brown-paper.. performance.and...statistical.60 Procurement.solutions.57..Kaizen.50 .example.technologies.defects.90 . balance.60 Process.charts..53 .deployment..287 .18–21 Processes. process.changes.champions.30 .188.forecasting.261 Project.of.exercise.stream.goals..forms.or. project.38 . machines.84 .281 Processing. analyzing.288 ..and. three-dimensional.145 Project.205–207 . example.51.metrics.down.workflows.55 ...work..32 ..77 Productivity . manufacturing.teams.chain.process.19..and..and. communication..events.21 .60 .and.service..57. Excel-based... mistake.15.for.proofing. quantification. common.117 .. process.analysis.mistake.analysis.20 ..characterization.. . reduce.workflows.. simplifying.performance. implementing.rationalization. new... analysis.268 Project. metrics.every..219.(VSM).receivable..224 . Lean.42 ..11.classics.154 .(P/L). unnecessary.200 Processes ..and.50.and.team.development..222 ...142 ..identification..21 ..high-level..24 ..30 .setup.32 ... value.149 .of.process.115 Product.200.available.116 . supplier.190 .43 .objectives.52 . simulation. Lean..people.201 .materials.35–56. control....222 Project...capacity.of.and.and. quantifiable..24 .and.....of.. project..227 .and.information..benefits.135 ..statement..59 Profit-and-loss.process.waste.process.. process. Lean. accounts..systems.characterization.research.57 .Index  ◾  333 .. formal. auditing..40 . standardization.at.227.product.50..projects.and...and..by.down.high-level.119 .product.identification.flow.and.52 Project.45.208–209 . accounts.or.forecasting.processes.194 Project.36 .of.. Lean.events. selecting.(SMED).analysis.290 ...190 Production. improving..

of.66.identification—process.227 .improvement.benefits.117 .daily.work-in-process..inventory. revenue.to. increased.274 .F.45 Project.32 ..230 Red-flag..and. Kaizen.40 Quick-response.improvement.of .assessment.service. .4.satisfaction.102 .213 .and.100.(WIP)..supplier..267–268 ..227 .52.80 Reduce.(ROI). eliminating..102 Q Quality.transition.chains.. process.. .sampling.product..and.nonfinancial.251 Rapid.275 Rebates.identification—process...and.avoidance. increased.35 Project. cost..264.296 Project.. stable.definitions. codes.32 .227 Proposed.227 .events..50..PowerPoint.sold.55....forms.Companion’s..of ..15 .Frederick..examples.to. summary.105.51.2.230 Reinforcing.189 r Random.90 Redundancies.chain...reduction.232 Resources.. ...activities. 31 .satisfaction.demand.methodology..Roadmap.in..52 Project.100.and. assigning.leaders..239...production.269 Projects...setup.297 Quality...projects. increased.. typical..28 ..questions.87 Red-tagging. .analysis.39 Pull.(COGS).employer.solutions... Toyota.charter....increases.a.151 Range.across. allocation.334  ◾  Index conducting.15...system.or.. and.analysis...212.Companion..259–260.risk. .90–91 ..298 Quality.56 ....297 Quality..change.cashflow.global..(SMED)...227 .supply.project.minute. 269–273 Relocation.team.225 ..manufacturing.89. management.22.worksheets.262 Pull.160.supply.100 Pull.39.39–40 key..116 Project.(IT).metrics.227 .and.12 Project..systems.....eliminating.and.scheduling. Kaizen.teams.changes.48 Project..274.219 Project.and.31–32.and.51–54 project.......225 Project.changes.Lean. change.50 project..scheduling.234 .12 Return.267–276 .exchange.and.systems...dies..satisfaction..charts.289 . increased.methods...267–268 .behaviors.195 Regulatory.communicating.controls.282 .constraints.technology..91 ..7 Reichheld...projects. information.240 Quantification.customer.55 .of. overview.36–38 overview.goods... .processing..154 .demand.43–44..35–56 prioritizing...Lean.Companion...system.260 Quality..37.46–49 Lean.40 Project.control.227 . important. SMED.(SMED).investment.plan. templates. Kanban.external.visual..time.of. implementing...103 .161 Push.presentations.process.cards.organizational.28 Recommendations...100 .teams..analysis.14..20 Resistance...benefits..proposed.reading.new..259..of.customer.assessment..identification. 43–44 ..example.financial..of.60.conditions. 45 Project.227 Projects. single.100–101 ..plan. implement.metric. . expense.. generic. minimize... others. prioritizing..control.on.212 Projects . Kanban..using.prioritization. suggested. cost..to.systems. resistance. short-term.

.marketing. level..and.286. level.273 Shining..improvement. reinforcing..for..225 . concepts.map..164 .136 ..80 Sharing.change.case. Kaizen..and. changing.160 ..90 .characterization.and.office.separation.192 . change.and.221 .mode.focus. Accounting.232 ..92.methods.effects.31 Sarbanes–Oxley.reduction.opportunities.process.202 Scatter.assessment.. process.data.115 .223 .cause...286.1.150.recognition..collection.(C.117 Root....282 S Sales.and..workflow.. follow-up..across.dashboards..188 .287 Simulation.analysis.recognition..(SMED). level.process..286. reward.200 Senior.and.priority.events.a.2.7 .3.184.297 Role...25..and. percentages.systems.promotional. key..53 Simulation.Index  ◾  335 Revenue.chains. infrastructure.204 .new.readiness.analysis.258 Road....77.systems.125 Single...26 ....115.(SMED).91 Six.plot.. control.240 .195 . 180 .rework.. 255 ..and.diagrams.(FASB). operational.processes. organizational..and.tools. collect.Financial..percentages.202 Sales.119.and.projects.(S&OP)..team.. waiting.across. process.setup..dies.of.E).and.96 Setup. Kaizen.236...11..287.planning. implementing.113 .171. identifying..knowledge.and...solutions.and. creating.. process.systems...197 ..288 .increases. metric..233 .and.and.192 ..and.business. histograms. standards..estimating...223 .analysis.285 . change. 90. building..36 Reward. reduce.219. workflows.8.. loops.121 Service. example:.. Kaizen..team.operations.. activities.285..receivable.231 Rework.30 ..261 .time.195 ..192 .. accounts.Services.212 .80 Simplification.157 . cost-benefit.across.278 Roadmap.290 .269 Simplification.40 .. failure.minimizing.activities.processes.23 .116 .capacity..194 .improvement......135 .team.and.272 .and. data.global.process.196–198..professionals..286 .137 .and.182 ..141. common.supply. data..stakeholder.and.chains.time.breakdowns.analysis .changes...and.and.142.292 Singapore.improvement. process.Board.135 Sharepoints.of.134 Scrap...214 .and..receivable..the. 270 ..190.and.Companion.and..of.strategies...environments.237 .example..breakdowns.279 .167 .(RPN)..&. cost-benefit. opportunities.and...287.204 Sales.39 .Sigma ...19.Quality..64...281. aligning.supply. project.activities. cause-and-effect. disorganized.model.274..a.industries.and.events.. communication.and..behaviors. deployment...272 Service.. 272 .227 .exchange..67 Service.(FMEA).management .282 Scrap.world.2. process.222. conducting.200 Risk..170.change.rating..analysis..minute.analyze. example.and..277 ..improvement.change.196 Service.and.and.202 ...analysis. accounts.analysis.global.. process.. Kaizen...288 .162.. improvement..workflows. process.prioritizing.inventory.analysis.Lean.263 . 222..change..143 .transition.

.. reinforcing.280 . inventory..253 .to.. commitment. Lean. important.activity.and.questions.variables.statistical.initiatives.group.new.variables.reading..Asia.254 .... quality. .and.and.deployment... Kaizen.tools.Sigma.5 .5 .16.improve..and..processes.teams. organizational.improve..241 ...239–266 .networks..191 SMED...reduction..output.22–25 .Sigma.into.elements.across.22.case.and. projects.identifying.template.263 ...a. Kaizen.business.extensive.61.metric. building..of..change.collection.189. measurement.296 mistake..deploy. process.226.satisfaction.18–21 ..“belt”.336  ◾  Index events.10–16 ...strategies.improvements..projects...and.Sigma.collection.(KPOVs).Lean.244–253 Southeast.analysis..Quality...and..activities.30....92 SMED.. .analysis. overview.. define.150.requiring..3–34.and.30 .270 ....224 .Sigma. control....requirements..changes.methods. statistical.analysis. (define.and.142 Statistical.and.214..improvement.. Kaizen. tools.. 160 Six..methodologies.281 . deployment. key.and.35 .supply.softwear.behaviors.128.239 .plan.222 .. key.and. measure.process...initiatives..Sigma..61 .61 .lean.122 process.input.. ...296 reinforcing.53 .. 177 .222.. failure.10 .....tools. management... communicating..96 Solutions..control.from.and.242–243 .measure..(VOC).tools...60 Statistical.and.problem-solving. building.error....change.of.controls..184 ..(DMAIC). 255–257 . key.methods.222 .methods..diagram.methods.process.for.. 177.137 outsourcing.. .five-phase.of. outsourcing..analysis.(KPIVs)..3–34 .process...statistical.alignment.change.26–32 ..incorporating..67 Six..244 .three. 24 Six.gaps.analysis.. .system.change.of.244 .42. . methodology.8..280 implementing.Sigma..61 . important.and. Companion.295 Minitab®.system.a.and.waste. other. define..chains.behaviors..(FMEA).240 .analysis..240. how.162 .improvement.measurement.264 .224.61 Six..data.proposed.tools.63.process.and....129 ..Minitab®.support.19 Spaghetti.205 .41.solutions.project...System. reducing.new... components.improvement. deploying.steps. projects..customer..and.51 Strategy. Six.33 . organizational. data.32.268. 254 Six.98 . overview.. supplier..principles.Sigma. .. work. control. general..dashboards.267 .sampling.control. analyze. control.152 Strategic..variables.92.295 .. improve.111..analysis..team.control. suggested.business. follow-up.(huddles).155 Standardization.17 .21 process.effects. 244–253.team.execution. Kaizen.(SPC).142.proofing.a.244 Statistical.281 .processes.complexity.229 Standard..breakdowns.89.. examples.mode.characteristics.178 . improving. key.191 Six.and..11 Six.system.159.196.240 methodologies.process.change.61 .and.151.137. softwear..168 .261.for..control).. .performance.analyze.case....184 .9.Sigma.meetings.system. data...122 .261–262 .to.and.the.259 .61 Six.259–260 .258 .178 .implementing.global.296 Stakeholders.and.in.events. creating.25.297 Small.work.Sigma.. voice.of.analyze. process.control.measure..223 ..example. methodology .159 Stakeholder..phases .plan.analysis. data. 269 .and....

82 Time.170–171.concept..scheduling. relative.163.59.pull. see also..initiatives.87..work.. 210.149–150 .114 .95 .technology..30 t Takt.jobs.work.117 Team.. of.data..expectations.282 Top-down..77..72. “Preventive…Autonomous…Predictive”..210 Supplier-input-process-output-customer.workflows.16..operations.networks.time.and.189 .85. calculation.118 Supply.92.information.96.services..145 .total.74 .manufacturing.98–99..States..content.in.for.(TPM)..complexity.and.breakdowns.forming.availability.210 . supply...modified...rate.103 .movement.12 Total.274 Transition.workflow.obtaining...batches.maintenance.58. process..and..just-in-time.(VSM)..environment..230 Time...expenses.38 .163 Supplies. global..67 “The.run..92 v Value.is....training.37 . what..You.253 Trial.93 ..88..Production..develop.73 .Number....performance.. dysfunctional.15.of..76.93 System.preventive.and.productive. process. predetermined..of.strategies.76 Training..map.eliminating.standardized.. within.new.sold.state.182 .37 Total...maintenance..chain.30....and.and.(JIT). key...63 Value. value-added.Reichheld.control.equipment..249 Unionized.cost. (SIPOC).. assigning.workflows.several.233 Unit.sampling.75 U-shaped.32 .(JIT).....batches. (TPM) Toyota.164.(TPS).and.236 Travel..or.69 u U-charts. information.77 Toyota.(SPM). production..152 Summary... constructing.maintenance...Parcel.identifying.. price.77 .(TPM).good..process.37 Team.of.series.117 Testing.support.93 Total.28. process.(IT).chains. developing..and.77 System ..reducing.92.278 ..prioritized...10..37 System.. improvements. analyze..38 United.157 Supplier.Harvard Business Review article)..products.Service.184.flow... calculation—original.63 .graph.28 Trends.management..31.Index  ◾  337 .61 .reducing.33 .38 .to. just-in-time..171. (Frederick..members. utility...process. 60.63 .87 Transferring... process.preductive.. 92–93 .31 Supplier..4–7 Stratified...conducting.8....136 ..128 Teams. time.systems.97 United.(COGS)..waste..105 .cells.. procedures.. “Lean”. calculation—future.analysis...stream.and.studies.137 Transfer..117 ....importance.materials.motion.of. benefits.100 Unnecessary.57. summary.63 .17.Need.of.101 .211.System.production.61 Unnecessary..63 .and.One..202 .8..and.system.127 .. 100 Toyota. functionality..Grow”......74–75 .63 ..systems.. dysfunctional..Kaizen?.

value.73 .39..activities.team..212 .of..motion...Sigma.alignment..(VA).and..of.themes.system..performance..time.environments.and.(JIT).patterns. Kaizen.3 ..environments. quantification. reasons.(CTS)..90 ..the.implementing..76.27 .118.63 . collecting.7 building.144 .. alignment..27 .analyzing.and.. example.events..79 Visual.279 .of....case.setup.create..63 .and.(SMED)...131..safety.117. Lean.26–27..71.complexity.unnecessary.and.for.....Six.62.unnecessary...(VOC). just-in-time.(VOB).process.222 creating.84 ..mapping–SIPOC. process. quantification..to.. critical-to-delivery..164...operations.analysis. 120.process”.to.analysis..business. Variation.space.129.21 . .61–63 W Waiting...setup..workflows.behaviors.systems.17 .of.10 .and.alignment. Lean.(CTC).. example.flow.61.79.10 . process..71 .new. activities. Kaizen. reduce. objectives.106 .106 .rooms.145 Value-adding. organizational.40 Wal-Mart.30.change.70.themes. critical-to-quality. standardization..workflow.and.. strategy...280....105 ..and.251 Visio®. prioritizing.63 ..29.workflows. reinforcing... .basics...and..43 ...and. critical. pictures. process.about..of.cells.to..proofing.and.basics.. three...84 .of..and.145 .cause. eliminating.of..accounts.280 Voice.(JIT)..by..35 Work. just-in-time.. reducing. example.new.163 .change. 141–148...for.requirements.37 ..156 Waste.and.and.of.changes.and. reduce.60 Work ..(VSM).67 .87 . Kaizen.38 . process.workflows.pull.and.the.implementing.operations. process.31.and. project. voice. .63..information..process...data.system...shadowing.146 . Lean.281 ..279 ..workflows.146 building.. process.11.systems. critical-to-cost.and.customer. implementing. process.stream.workflows.projects.37 Work..and..of.95 War.and.the..operation.Six.. mistake.207 .....with.Six..61 ....195 Work.21 . outsourcing..150 .receivable..7.major..144 . standardization.and.26 . outsourcing..182 .the. eliminating.development...and.176 ..processes. calculating. workshop.of.127.operations.identification.58 “Walk.Sigma..115.model.(VOC).customer...planning.U-shaped.of.workflows.product.37.280 ..70–73 data..129 .338  ◾  Index brown-paper.91 . elements.83 Work.72.53 .and.211 .the.7...74 .154.a.44 .themes.customer.242 .material.themes.duration.115 Waste...create.in.122 .11 .systems. common.Sigma.269 Work..253 . ..systems.205 .129 ..time.. strategy.89 .150. Lean..153. 74 .software. Kaizen.of.63 .control..139 .of.characterization.187 .steps.business..collection.office...and.(CTD).63 . process..solutions.202 . ten.30.153 . 32 Voice. translating.analysis.map.121 . common.and.eliminating.100 Visual..135.38 . process.and.(VOC).and. balance.operations.event.characterization.job.(CTQ).controls..120... Kaizen.multicultural.analysis.of.. visual.exercise.7 .process. example.supplier. voice. understanding.(SMED).and..156 .time.

Internet-based.285 ..management..31.inventory.Index  ◾  339 Work.chart.277.251 z Zip..76 X X-bar....166 ..codes.60.173.systems.43 Work-in-process.247.66 ..119 . 105. internal.(WM)....104..104 Workflows. overloaded...120.84 Workflow.stations.278 .. reducing....(WIP).

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