A philosophy of leadership teamwork and problem solving Focus: needs of the customer, empowering employees, and optimizing existing

ting activities in the process. Result: Continuous Improvement throughout the organization.

LEAN SIX SIGMA LEAN SIX SIGMA

CONTINIOUS IMPROVEMENT

The Key to Excellence in Execution Improvement Can be achieved by operational excellence methodologies like Lean, Six Sigma, Lean Six Sigma. It focuses on process improvement and behavioural improvement of people and organization Lean focuses on reducing non-value Six Sigma focuses on reducing process add time variation

LEAN
Core Idea: Eliminate waste Tools:VSM, 5s. Focus:- Low hanging fruits Impact:- Quick results.

Lean Six Sigma

Combination of Lean & Six Sigma brings radical change and increased value

SIX SIGMA
Core Idea: Reduce variation or defect. Tools:- Advanced tools like FMEA, Control charts. Focus:- Root cause of the problem Results:- Long term but Dramatic results.

Lean is a philosophy that seeks to eliminate waste in all aspects of a firms activities.

How does Lean work?

Considers an end to end value stream that delivers competitive advantage. Eliminates/prevents waste (Muda). Seeks fast flexible flow.

Who is Lean applicable to?

Lean is principally associated with manufacturing industries but can be equally applicable to both service and administration processes.

1) Value - specify what creates value from the customers

perspective. 2) The value stream identify all the steps along the process

chain.
3) Flow - make the value process flow. 4) Pull - make only what is needed by the customer (short

term response to the customers rate of demand).

5) Perfection - strive for perfection by continually attempting to produce exactly what the customer wants.

Six Sigma is a Quality improvement methodology 30 years old process. It is a management driven process. Customers is the corner stone - addressing VOC is important.

Why Six Sigma ?

To reduce the cost of doing the business and take project continuously. Project by project reducing the cost and improving the efficiency. Mainly for business improvement Eliminate Increased Customer satisfaction Increased profitability and competitiveness

SIGMA rating Per Million Defects 2 3,08,537 3 66,807 4 6,210 5 233 6 3.4
DFSS (Define for Six Sigma) DMAIC (Existing process improvements) LEAN Waste elimination and optimizing subset of DMAIC

At its core, Six Sigma revolves around a few key concepts. Critical to Quality: Attributes most important to the customer Defect: Failing to deliver what the customer wants Process Capability: What your process can deliver Variation: What the customer sees and feels Stable Operations: Ensuring consistent, predictable processes to improve what the customer sees and feels Design for Six Sigma (DFSS): Designing to meet customer needs and process capability

SL NO 1

Type of waste Was te of Overproduction

What is it?

Examples

Inform ation s ent autom atically even when not Proces s ing too m uch than required Printing docum ents before they are Required required Rejections in s ourcing applications Incorrect data entry Incorrect nam e printed on a credit card Typo errors

Errors , m is takes and Was te of Defects Rework

Was te of Inventory

Files and docum ents awaiting to be proces s ed Holding inventory (m aterial Exces s prom otional m aterial s ent to the m arket and inform ation) m ore Overs tocked m edicines in a hos pital More s ervers than required than required

Was te of OverProces s ing

Was te of Trans portation

Proces s ing m ore than required wherein a s im ple approach would have done Movem ent of item s m ore than required res ulting in was ted efforts and energy and adding to cos t

Too m uch paperwork for a m ortgage loan Sam e data required in num ber of places in an application form Follow-ups and cos ts as s ociated with coordination Too m any approvals Multiple MIS reports Movem ent of files and docum ents from one location to another Exces s ive e-m ail attachm ents Multiple hand-offs Cus tom ers waiting to be s erved by a contact center Queue in a grocery s tore Patients waiting for a doctor at a clinic Sys tem downtim e Looking for data and inform ation Looking for s urgical ins trum ents Movem ent of people to and fro from filing, fax and Xerox m achines

Em ployees and Was te of Waiting cus tom ers waiting

Was te of Motion

Movem ent of people that does not add value

Was te of Unutilized People

Employees not leveraged Lim ited authority and res pons ibility Managers to their own potential com m on Pers on put on a wrong job

Especially effective for the following types of continual improvement projects:

Accuracy in invoicing Capacity of line and product Lead time on delivery Production

Replenish downtime on equipment and lines

Accuracy in invoicing, delivery, and product Capacity of service area, call center, and product Lead time on delivery and call hold time Downtime on equipment, servers, and lines

An upfront diagnostic X-ray to help them identify the most critical opportunities. It consists of three steps:-

1)

Enterprise Value Stream Mapping

Scans the enterprise and maps its primary processes to identify the biggest opportunities to reduce cost by reducing wasted time and materials.

2) Benchmarking

Performance of processes is measured against internal and external benchmarks to measure shortcomings and establish performance-improvement targets.

3) Prioritizing
Team determines which process improvements will yield the greatest results when the Lean Six Sigma teams are deployed.