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Accenture Lean Six Sigma
Accenture Lean Six Sigma
This Lean Six Sigma book will help you analyze your operational needs, identify high-impact
Sigma Guide
opportunities, design and rapidly implement solutions, and create a system that will build
efficiency and strong performance in every area of your business.
to Doing More
Praise for The Lean Six Sigma Guide to Doing More with Less
“As a large multinational financial services corporation, Unum has been driving for simplicity,
continual improvement and lasting productivity gains throughout our entire company. We have
consistently adopted and deployed the strategy of Lean Six Sigma across the enterprise, as Mark
George has described it in this book. This holistic approach to Lean Six Sigma is providing
with Less
remarkable returns for Unum.”
-Bob Best—Chief Operating Officer, Unum
“Lean Six Sigma builds capabilities in our people at all levels. It gives them tools and a framework
in which to solve problems and address complicated issues. In the end, individuals feel they can
make a difference and are empowered to take on new challenges; teamwork and problem solving
become part of our culture and the company benefits financially and organizationally.”
-Al Stroucken—CEO, Owens-Illinois
Executive Summary
Mark O. George
Executive Summary
Mark O. George
This excerpt from the full book, The Lean Six Sigma
Guide to Doing More with Less, is printed with
permission from John Wiley and Sons.
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A note to readers
Don’t just take my word for it. Here’s what a few of our
clients say:
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Executive Summary
Sincerely,
Mark George
Dallas, Texas
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Chapter 11: Look Outside Your Four Walls to Lower page 199
Costs Inside
What Is an Extended Enterprise?
Working on the Supplier End of the Extended Enterprise
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• Speed to results
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Part One:
Reducing Process Cost by
Eliminating Waste
Part One of the book speaks to managers or P&L owners
looking for cost reduction alternatives to improve financial
performance within a functional area, department or single
facility. It provides an overview of the tools of cost
reduction.
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86%
85%
Expected
84%
83%
82%
81%
80% Observed
79%
15 14 13 12 11 10 9 8 7 6 5 4 3 2
Lead time (days)
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10.0
(10 = very; 1 = not at all)
9.0
Importance ratings
8.0
7.0
6.0
5.0
4.0
ry rde
r ns s e ice e nt nt ge dth er
li ve O tur Tu
rn v oic Pr Ti m e me me ma rea um
De ete yR
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d ag elo
p dI B o ns
me pl nt nto rec rL an ev ran ing oC
-ti Co
m rra Inv
e
Co
r de M tD B fer yT
On Wa l Or s hip uc t Of it
%
cia ion rod uc ox
im
Sp
e la t P od Pr
Re N ew Pr
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S C
U
I O U
P U S
P N
P PROCESS T T
L P O
I U
T U M
E T E
R R
Requirements, specifications,
information, feedback
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Step 1
Warehouse
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Storage 1 Storage 1
Demand 49 Demand 49
Time Avail 1440 Time Avail 1440
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Process
Exit rate
Process Lead Time # completed
in a given time period
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Part Two:
Reducing Costs at the Enterprise
Level
Part Two of the book explores the characteristics of
companies that have built true competitive advantage from
Lean Six Sigma. These firms focus on enterprise speed,
the hidden costs of complexity, the enterprise costs of
capital, and extending Lean Six Sigma to suppliers,
distributors and retailers.
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+90%
High margins
+70% and low capital base Evaluate
links to
Large capitalconsumers shareholder
+50%
Economic Profit
-10% 1 2 3 4 5 6 7 8
Invested capital
-30%
Acquisitions (M&A)
Capital Prudently use capital
Expansion
employed on both tangible plant
Improvement efficiencies and profitable
reserve expansion
Invested capital
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WTT Z
Setup A Process A Setup B Process B Setup C Process C Setup A Process A Setup B Process B Setup C Process C
CTI A
CTI B
CTI C
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Distributor/
Supplier Base Enterprise Dealer Base
Disruptors/ Disruptors/
Issues Benefits Issues Benefits
• Supplier failures • Lower probability • Market shifts • Flexibility to
• Quality issues of failure • Economic address changing
• Transportation • Flexibility from downturns demand
disruptions multiple suppliers • Transportation • Responsive to
• Shipping/delivery • Individual supplier disruptions product changes
errors increased agility and • Staff changes • Robust processes
• Weather and flexibility • Dealer failures less affected by
labor issues • Higher quality • Poor customer staffing changes
• Long lead times and flexibility service • Optimum dealer
• Insufficient • Analytically • Product network design to
capacity determine safety misrepresentation deal with individual
buffers w/o excess • Low growth dealer disruptions
inventory and its or failures
associated costs • Increased sales
• Maximum effectiveness
capacity • Critical link to
• Fast lead times understanding
“heart of the
customer” and
feeding into
supply chain
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Part Three:
Getting More, Faster
Part Three of the book addresses a common complaint
about legacy Lean Six Sigma programs: The projects take
too long, the returns are too small for the effort required,
and projects are under-resourced. This part of the book
explains how to inject rigor and discipline to enterprise
project portfolio management. Flexible, scalable, rapid
deployment models can drive high returns for a relatively
low commitment of resources.
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Score
√ Project 7 10 5
√ Charter 1 1 1 17
2 9 9 108
3 3 3 9 96
√
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Consolidated
• LSS resources are centrally located and fall under a central
Center of Excellence P&L
• More command and control to the central organization
• Central authority makes decisions related to standards,
functionality, funding, and change management
• Information flows from the central body to business units
• Centralization of resources allows for timely investment,
resource decisions
Representative
• Resources reside primarily within the business units, with
Continuum
Distributed
• Resources reside within the individual business units
• Central body responsible only for overseeing the most
top-level of decisions
• Each business unit responsible for its own process
strategy and improvement approach
• There is little or no information flow between business
units
• Each has awarenessof LSS Center of Excellence: rationale
for adopting its methodology; how CoE supports
organizational goals and objectives; scope and deploy-
ment timeline; how BUs can leverage the CoE
• Maximizes individual business unit autonomy
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Client-led
Pre- Lean Six Sigma follow-on
event Training projects
work
2-6 2–4
1 week 1 week weeks 1 week weeks
Prework
Prework VSA VSA …
on key Prework Kaizen
process Training Training
areas Kaizen
Kaizen Kaizen
1&2 Prework
…
Kaizen
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Monthly deliverables
NO
for Executives
• Target vs. actual Discuss:
• Variance analysis Create
Target vs. actual,
• Countermeasure countermeasures
action plan, and
to close gap
proposals continuous impv’t
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Get your copy of the full book, The Lean Six Sigma
Guide to Doing More with Less
The Lean Six Sigma Guide to Doing More with Less,
published by John Wiley and Sons, will be available
February, 2010.
Books are available at leading retail stores, such as Barnes
& Noble and Borders, and online through amazon.com,
barnesandnoble.com, books-a-million.com, borders.com,
and 800ceoread.com.
To learn more about Lean Six Sigma, author Mark George
or Accenture’s Process & Innovation Performance work,
please visit www.accenture.com/leansixsigmabook.
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About Accenture
Accenture is a global management consulting, technology
services and outsourcing company. Combining
unparalleled experience, comprehensive capabilities
across all industries and business functions, and extensive
research on the world’s most successful companies.
Accenture collaborates with clients to help them become
high-performance businesses and governments. With
approximately 177,000 people serving clients in more than
120 countries, the company generated net revenues of
US$21.58 billion for the fiscal year ended Aug. 31, 2009. Its
home page is www.accenture.com.
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