1 Lean Six Sigma Standard Business Roadmap Implementation Manual Issue No. 4: 2009
About Me Arlen Bankston Director, Lean-Agile Consulting Six Sigma Master Black Belt Certified ScrumMaster Trainer and Agile Methodology Coach 30+ Lean Six Sigma and
Collection ii Abstract The following thesis is aimed to research the issue of advantages and disadvantages of privatization of health insurance. The following topic
What are the Key elements of a Skills Matrix? Skills/Tasks •Team/Area: Team Members •Team/Area Leader: •Date: •Skills/Tasks •Name •Dick •Developer •Coach
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How do we narrow in on something meaningful? 1. Define what we mean by LSS and RM Process Lean (L), Six Sigma (SS), LSS, DFSS Risk Management
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62 Advantages and Disadvantages of PowerPoint in Lectures to Science Students two conformations of a molecular is hard to explain using chalk writing, but it could be
Advantages and Disadvantages of Various Lean Six Sigma Deployment Approaches Richard Aldous Rethink Management Consulting
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Agenda • • • • • • •
What is Lean Six Sigma Top Down Bottom Up Lean Six Sigma Awareness and Training External Specialists Governance Structure Success criteria
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What is Lean? • Lean Manufacturing originated in the •
• • • •
1950’s (Toyota Production System) Lean was based on Henry Ford’s philosophy of low cost, fast lead time and high quality and Deming’s 14 Points of Total Quality Management (TQM) Lean was adopted widely by manufacturing companies in the 1990’s as a rapid problem solving approach Increasingly it is being used in financial SIX SIGMA services and transactional environments Focus on Waste Elimination to reduce Time Tools to identify and attack waste QUALITY through simple techniques anyone can apply daily in a relentless pursuit of further improvement
“Anything that does not add value for the customer is waste”
• Cycle Time Efficiency
LEAN
LEAN SPEED • Waste Elimination
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What is Six Sigma? “Anything that does not conform to customer requirements is a defect”
• Made popular in 1986/7 by the Motorola • •
• Defect Elimination
• Six Sigma
SIX SIGMA
• •
Quality • Less Variation
• •
Corporation based on old concepts Expanded to GE where it was adopted as a management philosophy in the 1990’s Recognized as a powerful approach to achieve business • Cycle Time process Efficiency improvements Recently being adopted by financial services and transactional Enables environments Lean Focus on Variation Reduction to Speed improve Quality Results driven approach suitable for all kinds of processes Lean Works for simple and complex problems Speed Dramatically raises problem-solving capability (DMAIC) • Waste with a projectised approach Elimination
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Lean Six Sigma Is The Integration of Two Powerful Business Improvement Approaches “Anything that does not conform to customer requirements is a defect”
“Anything that does not add value for the customer is waste”
• Defect Elimination
• Cycle Time Efficiency
Six Sigma Quality
SIX SIGMA
Enables Lean Speed
LEAN Enables Six Sigma Quality • Less Variation
Lean Speed • Waste Elimination
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Why Implement Lean Six Sigma?
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Why implement Lean Six Sigma? To achieve both Quality (Six Sigma) and Waste Reduction (Lean) benefits that result in: • • • • • •
Shorter customer fulfilment lead times Improved quality Lower costs Improved capacity utilisation Maximise invested capital Customer loyalty and retention
Company wide program/plan Executive Sponsorship High impact and focus Experienced coaches in early phases Multiple dedicated teams – Lead by Black Belts Black Belt experience remains a key to success Extract top performers and allocate 100% to project Large investment made in training and future career Greater chance of realised benefits Greater focus on use of LSS tools Higher impact & breadth of projects Greater empowerment of Black Belts Higher trained team structure Copyright - Rethink Management Consulting
Top Down… Advantages • • • • • •
Aligned to Strategy Will have top support, driven by and accountable – Champion may even be executive level Relative high level of benefit achievable Longer term sustainability Ability to leverage black belts for training of green belts across greater organisation “Career path” – incentive to become BB
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Top Down… Disadvantages • • • • •
Need to lead by example High change management requirements Higher cost and dedication requirements Risk of early inexperience Scarcity of skills
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Bottom Up
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Bottom Up…
Bottom Up (Yellow / Green Belt) Copyright - Rethink Management Consulting
Bottom Up… Characteristics: • • • • • •
Projects are initiated and run within departments Shorter project times Lower impact projects Very hands on and operational approach Experienced coaches in early phases Dedicated/part time staff (perhaps at a lower level of staff), team members are yellow belts or SME’s • Less of a view on LSS methods and tools • Less training requirement (yellow belt, green belt)
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Bottom Up… Advantages • • • • • •
“Easier” access to required staff More skills transfer takes place Moderate level of benefits achievable Organic Buy-In (may be more difficult to achieve?) Less costly, “easier” to implement Less demands on staff
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Bottom Up… Disadvantages • • • • •
No strong link to strategy KPI and rewards must be linked directly to LSS outputs to incentivise Sustainability is a risk Benefits tracking may not be an integral part of the deployment initially Lesser chance of realised benefits
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Lean Six Sigma Awareness and Training Copyright - Rethink Management Consulting
Has top level support Mass training of staff at Green and Yellow belt level Improvement projects are not run as a corporate wide program Initiatives are identified and managed at departmental level Empower people to do it themselves No centralised focused LSS roles Less governance
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LSS Awareness and Training… Advantages • • • •
Build internal knowledge (doesn’t guarantee competence) Potential to become self sufficient Indoctrinate LSS from beginning Career development
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LSS Awareness and Training… Disadvantages • • •
Low level of improvement Knowledge = Competence If personnel not reward or recognised they will leave – as they are in demand • Training alone will not deliver results • Tendency to focus on training and not implementation of benefits • ROI not tracked • No formal adoption or entrenchment of LSS Frustration due to lack of top management support
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External Specialists
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External Specialists Characteristics • • • • •
Project specific High impact High focus on benefit realisation Use of external LSS specialist Should include skills transfer
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External Specialists… Advantages • • • • •
Speed and results Competence and experience Good method of knowledge and skills transfer Frees internal capacity (less dedicated resources required) Does not distract from business as usual
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External Specialists… Disadvantages • • •
Expensive – relative Client will be reliant on consultants to deliver LSS results No retention or development of internal knowledge or skills
Success Criteria • Team members must sever from daily duties – Black Belts / team leaders HAVE to be dedicated – Team members less so, however less focus = less results
• • • •
Do not treat LSS as an academic exercise You must measure and communicate RESULTS You need to use the appropriate tool for the problem Do not underestimate the people component in implementing LSS, Change Management is key • Team members have to get your hands dirty to achieve results • You must have clear goals when deploying LSS (LSS is not a flavour of the month) • Clear link to organisation strategy Copyright - Rethink Management Consulting
So which LSS approach?
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So which LSS approach? Yellow Green High Benefit Process Optimisation and DFSS
Moderate Benefit Process Simplification, Basic Tools & Lean Methods
