Are You Lean ?

and, if so, are you ready for 6σ?

For starters, let’s consider the sometimes tortured relationship between Lean and Six Sigma…

“The typical approach to lean six sigma fits Western thinking about simple cause-effect relationships and the overall perspective that the business is a technical system that needs clever manipulation with the right tool kit to achieve financial returns.

This type of thinking is totally alien to the human systems underpinnings of Lean.”

- Jeffrey Liker

Professor of Industrial and Operations EngineeringUniversity of Michigan

What is Six Sigma ?

Achieve 3.4 defects per million opportunities

Lead by Six Sigma Belts

Strong emphasis on statistical analysis

What is Lean?

Employee engagement philosophy

Collection of process improvement tools

Eliminate waste

Are they mutually exclusive ?

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LeanCulture

6σExpert

What they share

LeanCulture

6σExpert

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• Customer Focus

• Leadership• Discipline• Data driven• Teamwork• Process

Improvement• Training

How they coexist

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Engage Senior Leadership & Recognize Value Stream to

Customer

Identify Gaps in Process Performance as leading indicators

to achieve prosperity

Engage Employees to Stabilize Process and Reduce Waste

Identify Six Sigma Projects to Reduce Process Variation

Sustain and Continuously Improve Process

Lean Leaders

Lean Employees

Six Sigma Belts

Blended

TrainingTrainingTrainingTraining

Lean

6σ

How they achieve change through projects

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Continuous Improvement

Six Sigma Black Belt

DMAIC

Six Sigma Green Belt DMAIC

Kaizen

PDCA

Questions to ask any site about their ability to operate Lean

Manufacturing

Healthcare

Service

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How do you address this question

Do you compromise safety for your own comfort or to save time?

• Manufacturing• Not wearing eye protection

• Healthcare• Not using gloves

• Service

• Defying policy

Never is the time saving worth the additional risk.

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Do you clean up the place for a special or ‘presidential’ visit?

• Manufacturing• The CEO is coming

• Healthcare• Joint Commission is coming

• Service

• Government Inspectors are coming

There should be no need since 5S is be sustained.

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Do you know if you are meeting your daily production expectations?

• Manufacturing• Meeting delivery schedules

• Healthcare• Completing patient rounds

• Service

• Information exit rateDuring work day there must be periodic oversight by the operating supervisor to review performance to target. Gaps and issues inhibiting attainment should be immediately recognized and planned to be addressed. 13

How are issues escalated for higher management involvement as time increases to solve those issues?

• Manufacturing• Key equipment down

• Healthcare• Patient condition

• Service

• Customer complaints

Severity of the issue and the lapsed response time to solve the issue must have a matrix to identify the level of management involvement and posted for all staff to view. 14

Can you identify the input and output locations for the process? How is non-conforming product segregated from good?

• Manufacturing• Quality rejects

• Healthcare• Contaminated equipment

• Service

• Paperwork errorsStaged items to be processed and work completed can be visually identified. Use separate area quarantined/segregated from acceptable output that is clearly designated by RED. Use RED sparingly throughout the worksite so it signifies the need for action or attention. 15

Which processes are your least reliable and how do those compare to your most reliable?

• Manufacturing• Machine operation

• Healthcare• Lab / Nutrition / Housekeeping

• Service

• Call center response time

‘Bottlenecks’ to processing work have been identified by the reliability of the resource and improvement planning has been started. 16

Do you know your quality performance in terms of customer reported defects?

• Manufacturing• PPM and scrap

• Healthcare• Staph infection rate and readmissions

• Service

• Satisfaction survey and loyalty rate

Metrics for quality performance are developed with gap reduction targets and restoration plans.

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How much of your work effort produces output from your process that does not require additional effort to correct, rework, or re-inspect?

• Manufacturing• Know your First Pass Yield

• Healthcare• Know your First Pass Yield

• Service

• Know your First Pass YieldUsing additional resources the customer will not pay for impairs financial performance. This is referred to as ‘quality at the source’. Do it right the first time and do not consume resources that could be used to produce or deliver new output. 18

Who are the mentors for new hires and how are they qualified?

• Manufacturing• Skill Matrix, Apprentice - Journeyman

• Healthcare• Certifications, Floor Nurse

• Service

• Shadow, Audit and Monitor

Get new hires to effectively contribute sooner. Select mentors who are willing and capable of training others using consistent, repeatable methods. 19

How do you compensate for long change-over times on key processes? What impact would shorter times have?

• Manufacturing• Increase production lot size

• Healthcare• More operating theaters

• Service

• Not a big issueLong change-over time (typically hours or days) drive large lots to justify the lost production time. Immediately, more capacity results. Shorter time (preferably under 15 minutes) reduce lot size and WIP. Pull systems demand quick changeover (referred to as SMED) to improve response of fluctuating customer demand. 20

How long would it take a key product or information item to wind its way through the entire process if it were ‘walked’ past any In/Out basket, WIP, or inventory storage?

• Manufacturing• Hot or expedited order build

• Healthcare• Heart catherization response

• Service

• High value irate customer resolution

This is the PROCESS TIME with all waste removed. Typically, this is about 10% of the total LEAD TIME to deliver the ‘product/information’ to the customer that includes waste.21

Rather than looking at inventory in terms of monetary value, ask how much time is invested to deplete the inventory in terms of customer demand?

• Manufacturing• Raw materials and WIP

• Healthcare• Consumable supplies

• Service

• In-basket accumulation This reveals our confidence to deliver the process output. Unreliable process or material sourcing is buffered by response time accumulated as ‘just-in-case’ inventory. 22

How much information about operating the process is endowed to key staff (tribal knowledge) versus documentation?

• Manufacturing• Knack to do work

• Healthcare• Legacy practices

• Service

• Fiefdom of knowledgeStandardized processes require an identifiable documented ‘baseline’ to improve. Sharing this information permits those involved to recognize its effect both downstream and upstream of the process and engage to improve. 23

When do you believe Six Sigma (6σ) would be appropriate for your process?

• Manufacturing• A stable process - then reduce variation

• Healthcare• A stable process - then reduce variation

• Service

• A stable process - then reduce variation

First, have a lean culture in place that will sustain change.

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Thank you for your attention!

Q & A

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