Lean Six Sigma

BENEFITS STRATEGIC VALUE METHOD ORGANIZATION • Process improvement and • Superior cost structure • Professional and scientific • Improvement projects are led by Green redesign (manufacturing, • Competitive advantages based problem solving and Black Belts, who are familiar with the construction, financial services, on customer satisfaction • Working with precise and process and Lean Six Sigma healthcare, public sector, quantitative problem descriptions • Improvement projects follow the DMAIC high-tech industry) • Competence development in operations management, project • Starting with a data-based approach • Resulting in superior quality management and continuous diagnosis • Lean Six Sigma program management and efficiency levels improvement • Designing evidence-based coordinates projects by strategically • Structural financial impact improvement actions choosing projects and making sure that benefits are realized

0. DEFINE THE PROJECT Stakeholder analysis Lets initiative happen

Legend: M oderately agains Strongly against 0: Current situation Makes initiative S I P O C X: Preferred situation Helps initiative happe

Influence n Stakeholder Stake t Person 1 Person 2 Person 3 SIPOC Person 4

- Project charter - SIPOC and process flow chart - Benefit analysis - Organization (time and review board) DEFINE - Stakeholder analysis Project charter Stakeholder analysis

1. DEFINE THE CTQS 2. VALIDATE THE MEASUREMENT

Operational PROCEDURES Revenue cost Pareto Chart of Problems Throughput time Processing time (min) 200 Customer 100 Personnel cost satisfaction 150 80

Throughput time First time right Man hours 1 2 60 . 100 40

50 Start dat a End dat e Archivation Account manager Archivation Credit dept Waiting Internal External Processing 20 times iterations iterations time 0 0 Check definitions Face validity

Other and calculations CTQ flowdown Problem 5 ProblemProblem 1 4Problem 7 ProblemProblem 49Problem 12Problem 25Problem 15 19ProblemProblem 33 16 Problem 19ProblemProblem 44 22 - Validity of the measurements: before, during - CTQ flowdown and after data collection - Operational definitions Pareto analysis Data collection form - Precision: gage R&R or agreement study (kappa) - Measurement plan and forms - Pilot measurement - Start measuring MEASURE MEASURE

3. DIAGNOSE THE CURRENT PROCESS 4. IDENTIFY POTENTIAL INFLUENCE FACTORS

15 Man Machine Material 14 * 1 13 12

5 6 6 11 6 Descriptive Statistics: Total time 6 6 6 6 10 6 6 9 Variable N N* Mean SE Mean StDev Total time 8 Total time 521 0 9.422 0.555 2.661 7 Maximum 6 Variable 59.800 Brainstorming session Total time 6 6 6 A B C 6 6 6 6 Method Measurement Mother nature 5 5 Failure mode O S D RPN 6 5 6 Failure 1 3 2 4 24 Exploratory data analysis 1 Ishikawa diagram Failure 2 8 5 9 360 with 6Ms 10 Value stream map Process statistics Control chart 8 6 and histogram - Brainstorm sessions FMEA 4 - Expert interviews - Process behavior over time 2 - BOB vs. WOW and autopsies - Process capability analysis 0 - FMEA 1 2 3 - Value stream map - Process inefficiencies in value stream map BOB vs. WOW study

ANALYZE - Redefine project objectives - Process matrix and autopsies

5. ESTABLISH THE EFFECT OF INFLUENCE FACTORS 6. DESIGN IMPROVEMENT ACTIONS

Control variables 15 FINO DMAIC 4: possible influence factors DMAIC 5: effect 14 rkloa d Average workload Influence factor CTQ1 CTQ2 Impact Changeability Wo Sales person X X + – 13 Using a sales script X + ++ Coaching X ++ + 12 Incentives sales persons X ++ ++ FIFO Incentives advisors X ++ ++ Y 11 Timing of the call X – ++ Time Product knowledge X X – ++ 10 Department X X + – Call duration X – – 9 Courteousness X X – + Capacity vs. workload LIFO 8 Process matrix 7 Rush jobs 5.0 5.5 6.0 6.5 7.0 7.5 8.0 X - Improvement actions Third party - Select the most important influence factors - Operations management - Determine impact and changeability of Statistical data analysis - Description of the new process Rationalizing, routing, influence factors - Impact on the CTQs - Summarize evidence streamlining and line balancing IMPROVE -

7. IMPROVE PROCESS CONTROL 8. CLOSE THE PROJECT Technical Organizational Political

Plan Senior management Initiate Implement Monitor Line management Supplier Input Process Output Customer Close

Line personnel Implementation roadmap Intervention Compare with Inspection (OCAP) the norm Automatic controls Benefit Project tracking documentation Control pyramid Control loops Poka-yoke 5S and visual management - Process description and operating procedures - Benefit realization - Control plan and control loops (feedback and feedforward) - Implementation plan - Roles and responsibilities - Project documentation - Logs, dashboards and quarterly reports - Follow-ups - Mistake proofing (poka-yoke) Discharge form CONTROL

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