Lean Six Sigma PDF

Lean Six Sigma
in Luxembourg
KPMG Advisory Luxembourg
2 | Lean Six Sigma in Luxembourg
Foreword
KPMG Advisory Luxembourg is pleased to provide you with its report
focusing on the current status of the Lean Six Sigma LSS methodology
and practice in Luxembourg.
In this first edition, we offer you an introduction to the fundamentals of the
methodology as well as insights from key decisions makers operating in
different segments of the Luxembourgish market including the financial,
not-for-profit and industrial sectors. Through brief interviews we will learn
about their views and approach to the implementation of the LSS or other
proven methodologies in their organizational management.
We would like to take this opportunity to thank all contributors and
respondents to this report.
We hope you enjoy reading this publication and find it a valuable source
of information for your organization.
KPMG Management Consulting
Lean Six Sigma in Luxembourg | 3
Foreword on Lean Six Sigma

Methodology
In nowadays increasingly competitive environment, organizations are
continuously looking for ways to boost growth opportunities whilst ensuring
that risks and costs are monitored.
The Lean Six Sigma approach enables organizations to:
Optimize their costs
Improve service quality
Deliver significant business benefits
As such, Lean Six Sigma allies the Six Sigma methodology with
flexible tools arising from the Lean philosophy to drive high-impact
business improvements.
However, as we shall see, Lean Six Sigmas ultimate goal is not only
effectiveness but also efficiency in order to drive organizations
to do things better and to do better things.
Reminder from
Our 2008 Survey
In 2008, KPMG Advisory Luxembourg was pleased to publish its
Business Process Management Survey, which aimed at bringing
together the different concepts and practices in order to isolate a
common understanding of the key issues, benefits and main drivers
underlying the Business Process Management and Business Performance
Improvement approachs.
Our survey combined facts, insights and trends from over 80 Luxembourgish
financial institutions. It also provided a clear and up-to-date overview of
the processes, documenting procedures and analysis methods applied in
the Luxembourgish financial sector.
It appeared that good sense was the favorite approach for small companies
while proven methodologies, such as Lean Six Sigma, were preferred by
large companies.
100%
80%
60%
40%
20%
0%
Large
Lean Six Sigma
Lean
Six Sigma
ISO
Medium
Small
External Consultant methodology
Internal methodology
Good sense
A small institution applies to a company that employs

less than 49 employees.
A medium one counts between 50 & 299 employees.
A large one has more than 300 employees.
Results from 2008 KPMG Business Process Management Survey:
Applications of BPM/BPI Methodologies
A Brief Historical
Overview
Lean
During the fifties and the sixties, Toyota Motor Company started to set up a
new manufacturing model that would mainly concentrate on the management
of costs and wastes, which were targeted for elimination. The main areas on
which they focused their attention were safety stock and work in progress.
In the eighties, many US and European product markets came under pressure
from foreign manufacturers. Consumers expectations increased in terms
of price and quality. In response to this new reality of the market,
many manufacturers decided to leave their traditional batch manufacturing
models in favor of Lean manufacturing.
Six Sigma
In the mid-eighties, in their pursuit of quality improvement, Motorola reinforced
the then traditional quality levels in order to obtain refined granularity. To this
end, Motorola decided to measure defects per million opportunities rather than
the usual measures of defects in thousands of opportunities. For a process with
only one specification limit (Upper or Lower), this results in six process standard
deviations between the mean of the process and the customers specification
limit (hence, 6 Sigma).
Motorola therefore used a standard which led to the set up of a new
methodology that combined internal measurements and control strategies
with Total Quality Management approaches. This methodology placed the
customers at the centre of process improvement aiming to ensure their
requirements are satisfied.
DFSS
Design for Six Sigma

Principle: Process generation in contrast
with process improvement. Applicable
for new product or process designs
Six Sigma
1986
Mikel Harry
Motorola
Principle: Reduce process variations
Tools: Failure mode and effects analysis,
process capability,
Lean
1962
Fordism
1914
Taiichi Ohno
Toyota Production Sytem
Principle: Reduce costs and wastes
and improve quality
Tools: Just in time, kaizen, kanban,
quality circles, first time right,
Henri Ford
Taylorism and Fordism
Principle: Continuous assembly lines
but inflexibility of the system
Lean Six Sigma:

Definitions
Lean Six Sigma is a synergized concept of Lean and Six Sigma that results in the elimination of wastes (classified as Defects, Overproduction,
Transportation, Waiting, Inventory, Motion and overProcessing) and long-term defect levels below 3.4 defects per million opportunities.
It combines Six Sigma Quality with Lean production speed to achieve major cost, inventory, and lead time reductions
This methodology is based on process analysis and improvement
Six Sigma
Lean
Reduce process variation

Continuous quality improvement techniques
Customer satisfaction (Voice of the Customer)
Specify Value - as seen by the Customer

Identify and Create Value Streams
Make the Value flow from raw material to Customer
Pull Production not Push
Strive for Perfection
Six Sigma is a methodology that uses statistical analysis to measure

and improve a companys performance. Customer requirements,
design quality, metrics and measures, employee involvement and
continuous improvement are the main elements of Six Sigma practice.
Lean can be considered as the optimal approach of generating

products and services with perfect quality and no waste.
These principles were once a fundamental shift from traditional
operations practice, but have now become mainstream in promoting
the synchronization of flow through processes, operations and
supply networks.
The DMAIC Method in Lean Six Sigma

The Lean Six Sigma methodology follows the Define, Measure, Analyze, Improve, Control (DMAIC) roadmap for process improvement.
It delivers sustained defect-free performance and highly competitive quality costs over the long run.
Define
Define project goals

Define customers deliverables
Measure
Document and validate the current

measurement tools
Assess the baseline performance
Control
Define
Improve
Analyze
Analyze root causes behind the metrics
Lean Six Sigma
Analyze
Measure
Improve

Improve the process by eliminating defects

Re-design processes
Control
Implement controls of future processes

performance
Sustain the changes made
Lean Six Sigma and Operational Risk Management

Although operational risk management stems from the industrial sector,
it has widely become recognized as a key element of any organizations
sustainability and stability.
In the same way, process diagram analysis and flowcharts can be used to
determine the relevance, effectiveness, efficiency and sustainability of the
controls in the processes and systems across an organization.
It has indeed gained importance under the pressure from the local and
European regulators. This tendency became particularly relevant since its
inclusion in the reviewed version of the Basel II Accord in 2004 where
operational risk was defined as resulting from inadequate or failed internal
processes, people and systems from external events []includ[ing] legal risk,
but exclud[ing] strategic and reputational risk.
However, LSS does not only readjust obsolete processes or processes that
have fell below specifications and ensure that relevant controls are in place,
it also puts the emphasis on the operational users, who are recognized
as key actors.
Furthermore, operational risk management today must combine

quantitative expertise risks, with practical input from day-to-day operations.
This definition therefore encompasses a broad range of possibilities that
can lead to undesirable outcomes.
With its proven statistical analysis and techniques, the LSS methodology can
offer a proactive approach to help mitigate risks and improve a companys
operational performance by identifying and eliminating defects in processes.
To name a few, some LSS tools such as the process mapping can be used
to analyze the processes and identify potential gaps in the processes and its
potential associated risks.
The frequency of different categories of losses and errors occurring at different
points in the process can also be used to identify risks.
These have the opportunity to show their expertise in proposing changed

functionalities in the original design of the processes, much more in
adequacy with their day-to-day reality. This methodology can also enable
them to use simple visual tools to understand and update workflows
that can involve numerous stakeholders from the internal resources to
the final customers.
Also, the methodology helps identify non-added value tasks for which the
client is not willing to spend money and/or time.
At KPMG, we indeed consider that operational risk management tools and
optimization improvement methodologies involving operators skills and
knowledge are not to be considered as antagonistic. Especially in this
post-global financial crisis era that proved that neither mere common sense
nor the most sophisticated risk management systems didnt help prevent
the current economic climate.
Operational Risks
Operational Risk Management Process
People - Stakeholders - Processes - Systems
Monitor and
Review
Assess
Control
Analyze
Take Decision
Speed
Quality
Costs
There is a synergistic relationship between Risk Management and

Six Sigma. It improves an organizations ability to accept the right
amount of risk to capture strategic opportunities.
At KPMG, we indeed consider that operational risk management tools
and Six Sigma methodologies involved operators skills and knowledge
are not to be considered as antagonistic.
Lean Six Sigma Methodology
Identify
How KPMG Advisory

can help:
Successful organizations, whether they are commercial, industrial, financial or
public sector entities, continually examine their performance, costs and policy
drivers, seeking out possibilities to enhance their effectiveness and efficiency,
and take advantage of opportunities arising from technological innovation
and changes in regulation, consumer behaviors, demographic trends and
economic conditions
Lean Six Sigma results are significant and measurable. The methodology
enables businesses to clearly identify and meet customer needs by
emphasizing creative problem solving and teamwork.
At KPMG Advisory, our experienced Business Performance consultants,
IT Advisory professionals and LSS Black Belt practitioners offer practical
solutions to enhance your processes but also to improve your operational
and financial performance.
We value continuous improvement, where performance is constantly
evaluated. Our commitment is the development of sustainable and
measurable results.
Luxembourg Market:
Based on interviews,
Trends in Organization Structure
EFA

Processes Analysis Approach
Process Improvement Department applies an approach based on several

methodologies such as Lean, Six Sigma, TOC and System Thinking.
The approach is adapted to the context. EFA doesnt codify the method.
Use of Key Risk Indicator (KRI)
Indicators as first time right or one stop are followed.

Presently, there is no direct link between the analysis of the Company
Risk Department, the failure modes and rescue controls identified by
the collaborators.
Use of Key Performance Indicator (KPI)
Yes
Identification of losses
No
Use of processes modeling tool
Not yet. Nevertheless, the mapping of processes via a dedicated tool might
become a possibility in the future.
Use any quality tool

(Minitab, Business Intelligence tool.)
to monitor the
Company effectiveness
Company efficiency
Winchart
WinChart

Most companies agree to define efficiency as doing things the right way
and effectiveness as doing the right things. If a company works towards
effectiveness by eliminating activities which have no added-value, it will
consequently improve its efficiency, in terms of productivity and costs.
The contrary is not true. For us, it is relevant to initially start improving
effectiveness and subsequently improving efficiency. Effectiveness could
only be measured against value defined by end-customers. Within EFA,
there is not a single customer demand but a variety of them. If we stand
far of our customer demands we waste valuable time and increase costs.
Eric Belleflamme - Ren Brisbois
Company sector: Fund Administration

Company size: 550 employees
Department of the Interviewee/function:
Process Improvement
In line with EFAs priorities, the Process Improvement department is

involved in supporting the operations to solve performance issues.
During our PI interventions, we work to create continuous enhancement
by supporting collaborators to improve their processes. In this context,
the role of Management has to evolve by allowing collaborators to
experiment the identified opportunities. To this end, in each intervention,
we select the collaborators who adopt the most constructive behaviour
in order to constitute a team whose aim is to discover the root causes of
inefficiencies and to consequently improve the processes.
As a consequence, our team is developing and teaching employees
an approach that claim to be systemic, statistical and cognitive. In our
approach, people are not the cause of low performance to be investigated.
It has indeed been demonstrated that 95% of organizational problems are
caused by the companys operational systems and merely 5% caused by its
people. Changing system conditions and thinking behind, it is the best way
to achieve sustainable improvements.
RBC Dexia

Approach based on LSS methodology
Yes
Yes
In the context of NAVs production:

Log of detected errors or omissions;
Identification of their root causes;
Implementation of the defined solution in order to improve the
quality of the services provided.
This approach has enabled RBC Dexia to run processes at 3 Sigma,
which means that their processes, Voice of Process, Voice of Customer,
according to current measures of basic KPIs, satisfy at 99,7% their
clients needs. Although RBC Dexia delivers 99,7% of their NAVs on
time, they would like to improve this result.
The next step will be the inclusion of Performance KPIs and later of
Delighter KPIs.
The company models its processes via the Brown Paper technique.
Process modeling is not systematic. Processes modeling is used as a
support tool at the operational level.
Visio is also used to model some processes.

to monitor the Company effectiveness
Minichart

An organization performs well if it works
towards providing the best quality to its clients.
At RBC Dexia, we work every day on the
improvement of processes, their accuracy,
responsiveness and timeliness.
Yves Lahaye
Company sector:
Fund industry
Company size:
1600 employees
in Luxembourg
Department of the
Interviewee/function:
Operation Control & Quality
To meet our objective, RBC Dexia is committed

to develop and implement two distinct but
linked subjects: the continuous improvement
of operational quality and the mitigation of risks.
Our focus on quality has been formalized as the
Quality+ programme and global objectives
have been set to standardize the approach to
quality across our Enterprise.
Each function is tasked with establishing
consistent metrics globally and each country is
tasked with establishing a consistent approach
to improve the quality of their local service
delivery. Performance metrics and improvement
action plans are reviewed regularly. Central to
this process is the Quality+ Meeting. Open to all
staff, the meeting allows the business to capture,
understand and communicate the Voice of the
Customer requirements and presents an
end-to-end value chain view, prompting discussion
and cross-collaboration. Furthermore, assessing
and discussing quality in this way enables us to
better identify areas of operational risk. To facilitate
the Quality+ Programme, a specific team has
been created: the ABC Team is composed of
collaborators from 3 different areas, all of them
working on the improvement of quality:
A: the Architects, who work on the direction,

definition and standardization of the Enterprise
approach aimed at achieving quality service
excellence against client requirements;
B: the Builders, who are responsible for diffusing
and following-up the implementation of the
quality approach in their local entity;
C: the Champions, who monitor the performance
(quality, time and cost) of processes by
measuring KPIs.
By creating the ABC team, we are developing a
quality-oriented responsibility/sensibility across all
operational levels. The Champions continuously
analyze the quality metrics of processes to look
for areas of risk and improvement solutions to
make processes run at 3 Sigma or more to meet
our clients requirements.
Moreover, RBC Dexia has a Quality+ Online
Academy whose training sessions focus on
two aspects: the Hard Skill which is related to
technical competences and the Soft Skill which is
linked to the relationships with costumers.
In order to increase the quality of our services,
we also use a visual management methodology.
Therefore, all RBC Dexia employees are actively
involved in the improvement of the quality of
the service delivered through a campaign of
communication with a bottom-up approach.
UniCredit
Luxembourg
s.a.

Project Management defines the approach that has to be implemented.

No specific methodology is used, however some tools of proven
methodologies (LSS, Total Quality Management) are used to
restructure the organization.
Yes
Yes
Claims from customers and failures arise from 3 sources:

Email;
Post;
Via the relationship managers.
Regularly statistical tests (random based tests) are used as early bird
indicators in several areas.
Aris, Aneis
Use any quality tool (Minitab, Business

Intelligence tool.) to monitor the
Company effectiveness/efficiency
No specific tool

Performance at UniCredit is mainly embedded in financial indicators
such as gross operating profit, profit before tax and cost/income ratio.
Our Management Committee defines the required level of quality/
performance taking into account our business, where the relationship with
the client is of the upmost importance: especially in Private Banking the Client
Relationship Managers will do everything possible to satisfy their clients.
To this end, UniCredits approach is the following:
P
rovide tailor-made products at the very high end of Private Banking
business;
P
rovide high quality industrialized services in the lending business and in
B2B business.
Dr Joachim Beckert
Company sector: Banking Industry

Organization
Depending on the business area, high quality is mandatory in the banking

industry. Therefore all departments in the bank work towards three directions:
time, cost and quality. Managers shall not only deliver their financial targets,
but they also need to maintain the banks sustainability and reputational risk.
UniCredit has a very strict definition and handling of operational risk within
the Basel II advanced approach. The objectives of risk management are
established according to a common approach defined by the group. Therefore
the bank defines its risk appetite on a regular basis that has a strong link to
the service quality.
The implementation of a project management philosophy is one of the
success factors for the future development of the Bank. Also, a new
product process is established to keep economical figures and quality
aspects under control for new business initiatives.
CERATIZIT
Luxembourg
S. r.l.

CERATIZIT Luxembourg S. r.l. applies an internal methodology based

on LSS, Total Quality Management, the Theory of Constraints, to monitor
wastes, identify their causes and fix them. All those investigations are
done to reach a 100% just in time flow. No specific methodology is used
to improve the performance.
The KRIs are only used by the Board of Directors in case of incidents.
Yes
CERATIZIT uses operational KPIs, defined to monitor the deadlines

and the quality of the weekly production required by the customers.
Each production line manager has to daily monitor these indicators in
order to weekly update the related dashboard.
Visio (not systematically performed)

In most cases, the machines used for production automatically generate

control charts to statistically monitor the processes.
Moreover, the machines indicate their performance thanks to a process
capability (Cpk) indicator.
In some other cases, if required by the client, they check 100% of
the production.

We measure the performance of an organization through its cash and
working capital. The three major parameters which lead to lower working
capital are the optimal usage of raw material, machines and human
resources. We mainly focus on the optimization of the stock level which
is the cornerstone of our organization. High stocks hide processes which
are not under control. The Senior Management controls daily production
measured in tons as a macro indicator. Its a good raw indicator for the
profitability of the production.
Efficiency is doing the Things Right while effectiveness is doing the
Right Things: in our organization we focus more on effectiveness than
on efficiency. Our first goal is to meet our costumers needs. Efficiency
is mainly influenced by usage of machine, raw material and labor force.
More or less 10 persons work on the daily monitoring of effectiveness and
efficiency. It is a decentralized team of production line managers in charge
of the production lines who have been trained in Total Quality Management
and Lean Six Sigma and dispose of standardized reports.
David Barth - Jacques Lanners
Company sector: Industry

Company size: 6000

people worldwide
1400 people in Luxembourg
Chairman of the Executive Board and Managing Director
We work in a Top-Down approach to fix the financial objectives. It means

that macro improvements from a financial point of view are defined by the
Top Management. On the other hand, a participative management is in
place: the operational management disposes of a huge degree of freedom
to define the way to achieve operational objectives.
The Quality Manager is in charge of defining and documenting internal
procedures. In order to monitor and ensure the quality of production in
real-time, Ceratizit has also defined the Quality Controller role. Each person
from Operations covers this role by checking their own products and by
filling in a control card.
We ensure the success of our quality and process improvement with the
help of Project Management. This approach consists on a planning phase
based on Pareto, 5 Why, AMDEC and ROI analysis and on standard project
milestones to pass the gates necessary to productive implementation.
The project status is reviewed on a monthly basis by the Management
and the Project Manager.
Flix
Giorgetti
s. r.l.

No
No
Yes, there is only one KPI: the number of remarks (imperfections)

detected by the client at the reception of the asset.
Each construction project is unique. Due to this, Flix Giorgetti s. r.l.

does not work with standardized procedures. The company customized
the basic processes and procedures used in the building sector in order
to meet the specific needs of their clients.
At the end of the construction, Flix Giorgetti s. r.l. will be the first to
take possession of the new construction. Indeed, they will check the work
that has been realised by the suppliers and by their own teams as well.
To this end, they will first check and fix the potential default(s).
Afterwards, the final customer will take possession of the asset.
If the client points out more than six defaults, the information will be
escaladed to the Direction of the company. From that moment on, they
will investigate in order to understand/identify the origin of these defaults.
Losses in the construction industry can be monitored either by the
company itself or by a watchdog. A watchdog can have different
functions such as the checking of the planning, checking the bills and
performing quality controls.
No

No

The keyword to define performance is quality. The quality of a company
depends on the quality of its people. Human capital is essential.
People applying for a position in our company must pass several interviews
with different Heads of Department. The newcomers will be followed
during one year by their more senior colleagues. After this first year,
they might also follow further external trainings.
In a highly competitive market such as Luxembourg, quality makes the
difference with our competitors. Therefore, the quality of our work is monitored
on a day-to-day basis, but no quality-oriented statistical methodology is used
in our company. However, in 2008, in order to improve our efficiency, we
launched the Avanti project. This project consisted of having interviews with
each collaborator in order to identify what they consider as good or needed
improvements from a micro-processes point of view, up to the organizational
model of the company. As a result, we selected some highlighted points to
simplify and/or increase the coherence of processes. Thanks to this survey,
we increased our quality and profitability.
Paul Feider
Company sector: Real estate developer and contractor

Director
Additionally, to maintain our standards of quality, we have set up a

cross-departmental team composed of collaborators from the technical
support, HR, machinery & material and commercial departments, to better
address our customers requests.
In our business, risk is everywhere, but thanks to our long experience in
Luxembourg (the company was been founded in 1937), we know most of the
prospects/clients and suppliers for a long time. Furthermore, Luxembourg
is a small country and we pay a particular attention to the identification of
geological risks. We are obviously also concerned about the risks related to
the profitability of a project; in this respect, we establish financial forecasts in
order to evaluate them.
Caritas

Within the QMS as certified ISO 9001 since 2006, processes are defined in
their key functions and objectives. Their effectiveness are evaluated at least
twice a year within formal management reviews.
Currently limited to risk assessment within project management of the

international cooperation department.
Yes
Surveys are selectively organized among donors to gather feedback on

the perceived quality of the services: these surveys allow Caritas to know
their satisfaction rate and their opinion regarding priorities set, or to be
set, by Caritas in its humanitarian and social work.
Internal audits are also used to identify losses. Employees are encouraged
to identify problems and potential solutions to improve the processes.
The monitoring of KPI is another way to identify losses. The Logical
Framework Approach (LFA) used for international cooperation includes
the monitoring of Objectively Verifiable Indicators.
Usually losses are discussed during steering committees organized by
department. To remedy the causes of losses, Caritas has established
plans for improvement within each department, documenting problems
that occur, internal or external feedback as well as audit recommendations.
Corrective or preventive actions are identified by the Management and
a dedicated person is identified to solve them. The approach includes
operational risk analysis on a case to case basis.
Microsoft Visio

The International Cooperation Department uses Caproma

(Caritas Project Management), an in-house developed project management
tool following the basic steps of Project Cycle Management.

We define the effectiveness of an organisation as its capacity to focus on
the defined strategic results, while efficiency also focuses on the means
deployed to reach them.
During our yearly Management planning session, objectives and
corresponding actions are set for each Department, following Caritas vision
and strategy as defined over a 5-year period. The objectives are associated
to the 4 dimensions of a Balanced Scorecard and set up with dedicated
indicators, chosen to assess the performance of our organisation.
The Management monitors these indicators once to twice a year.
The objectives are broken down to each employee during appraisal meetings.
Donors are involved through surveys and discussion meetings. In-house
suppliers evaluations are performed as well. Concerning the cost indicators,
since we are an NGO, we dont monitor the ROI. As our funds come from
donors (both private and institutional), we aim at keeping administration costs
to a strict minimum without compromising on quality and sustainability.
Elisabeth Werner - Philippe Streff
Company sector: Non-Governmental Organisation

General Secretary / organizational Development
Employees can trigger improvement initiatives through internal audit

or during year-end-reviews.
We do not have a Risk department neither any responsible appointed
for Operational R&C identification and follow-up. In our organization,
the Head of Organisational Development has the responsibility to monitor
quality according to the ISO-9001 certification. She is also responsible to
verify whether the procedures are followed. Operational risks are identified
on a case to case basis.
BIL

A structured approach has been put in place 2011. Based on the BIL
Process Model, Process Owners and Process Operators have been
nominated for the operational end-to-end processes. The tools at their
disposal are the cartography of their processes, KPIs and an action plan
based on AMDEC (Lean Six Sigma approach). There are monthly followed
by the Organization Department.
15 people are Green Belt certified and 6 persons are preparing their Black
Belt certification.
Yes
Yes (A specified project has been put in place to automatically deliver to

Process Owners quality and lead-time end-to-end KPIs)
Losses are identified and fixed in 3 ways:

According to incidents logged in an in-house system, the Risk
Department determines the cause of the error and implements an
action plan, not a process improvement project but most of the time,
the implementation of new controls
Customers claims are handled through a Contact Centre
An internal contact center (BSC) also handles with process
dysfunctions detected by Front or Back Office teams
Those three entities can also escalate to BIL Quality Committee.
Mega

Minitab

We define performance as the actions set up to provide services with high
quality to clients in respect of time constraints and cost objectives.
Until 2010 BIL has been more reactive to time and cost matters.
In order to be more clients quality satisfaction oriented, we tend to be
more and more proactive by including an assessment process phase at the
beginning of the projects.
The improvement initiatives start from the Process Owners and the
Process Management team based on the analysis of the process & KPIs.
Nevertheless, everybody at BIL is expected to propose improvement
actions. Moreover, since 2010, issues that have direct impact on our
customers are reported to our Quality Committee, which is in charge of
improvements. Operational risks, front office, back office and contact
centres report to it. Every three months, an Excellence Committee takes
place (the anteroom of the Executive Committee) in order to move
forward some improvement projects. Arbitration is then realised,
between expected results and costs.
Emilie Hoel
Company sector: Banking Industry

Organization & Program Management
Risk identification is made by our risk department which seeks

out potential risks and determines the cause of past errors.
Upon identification, risks are immediately reported to the Management
with supporting indicators of threat and global roadmaps indicating their
potential impact on the company. The next step is to better integrate risks
and controls within our processes.
We are applying the LSS approach to our major projects (IT and non-IT),
hoping that changes will be handled more easily.
P&T
Luxembourg

No
No
Yes
P&T uses four main tools to identify losses:

Bottom line of financial statements (the essential one)
Complaints from customers, which reflect the quality of the services
Surveys addressed to the clients in order to know their perception
of P&T
Cost accounting data
P&T is also informed of the level satisfaction of their customers
through hot lines from their subdivisions such as telecom services,
post services, financial division,...
Yes, sometimes with Visio

No

Performance is embedded to our financial results. The data sums up many
variables from our company such as our operations efficiency, our quality of
service, our employees performance, etc...
The performance improvement initiatives come from internal and external
inputs. Internal improvements derive from financial statements, from
cost accounting or from internal efficiency assessments, while external
improvements take their roots from market trends and customers needs.
Occasionally, operational improvements are suggested by operators.
The monitoring of implemented improvements depends on the activities:
labor intensive operations are more difficult to monitor improvements than
IT-based operations. Post is a very labor intensive business whereas our
telecom or banking activities are more IT supported. In general, we monitor
improvements through their impact on the bottom line, the improved use
of resources (time, energy, etc...) and also a decrease in complaints and
technical issues.
Paul Peckels
All KPIs in P&T Luxembourg are assessed based on Kaplan and

Nortons Balanced Scorecard and include four main axes: Sales, Finance,
Human Resources, and Operations.
Company size: P&T Group: 3300 employees
We do have neither centralized nor decentralized Risk Scorecards or

Departments, as it is quite difficult to monitor and collect continuously
information due to the diversification of the company. However, IT-related
risks are identified and addressed. IT-risk mitigation is one of our main
concerns, due to our core service offer for disaster recovery and
business continuity.

Post Division, Director, Member of the executive committee
We assessed our business continuity capabilities in the postal area and identified
ways to mitigate the risks. The risk analysis was performed by an external
company and is foreseen to be repeated on a regularly basis.
Company sector:
Post and telecommunication services operator
For any question or additional information, please do not hesitate to contact:

Vincent Kller
Partner, Financial Services
T: +352 22 51 51 7922
E: vincent.koller@kpmg.lu
Jean-Pascal Nepper
Partner, Financial Services
T: +352 22 51 51 7973
E: jean-pascal.nepper@kpmg.lu
Tchien-Wey Banh
Assistant Manager
T: +352 22 51 51 7247
E: tchien-wey.banh@kpmg.lu
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or
entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate
as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate
professional advice after a thorough examination of the particular situation.
2012 KPMG Luxembourg S. r.l., a Luxembourg private limited company, is a subsidiary of KPMG Europe LLP and a member of the
KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity.
All rights reserved. Printed in Luxembourg.
Patrick Wies
Partner,
Public Sector and National Market
T: +352 22 51 51 6305
E: patrick.wies@kpmg.lu

Lean Six Sigma PDF

Enviado por

Dados do documento

Descrição original:

Título original

Direitos autorais

Formatos disponíveis

Compartilhar este documento

Compartilhar ou incorporar documento

Opções de compartilhamento

Você considera este documento útil?

Este conteúdo é inapropriado?

Direitos autorais:

Formatos disponíveis

Lean Six Sigma PDF

Enviado por

Direitos autorais:

Formatos disponíveis

Lean Six Sigma

KPMG Advisory Luxembourg

2 | Lean Six Sigma in Luxembourg

KPMG Management Consulting

Lean Six Sigma in Luxembourg | 3

Foreword on Lean Six Sigma

4 | Lean Six Sigma in Luxembourg

A small institution applies to a company that employs

Lean Six Sigma in Luxembourg | 5

Design for Six Sigma

6 | Lean Six Sigma in Luxembourg

Lean Six Sigma:

This methodology is based on process analysis and improvement

Reduce process variation

Specify Value - as seen by the Customer

Six Sigma is a methodology that uses statistical analysis to measure

Lean can be considered as the optimal approach of generating

Lean Six Sigma in Luxembourg | 7

The DMAIC Method in Lean Six Sigma

 Define project goals

 Document and validate the current

Lean Six Sigma

 Improve the process by eliminating defects

 Implement controls of future processes

8 | Lean Six Sigma in Luxembourg

Lean Six Sigma and Operational Risk Management

Furthermore, operational risk management today must combine

These have the opportunity to show their expertise in proposing changed

Lean Six Sigma in Luxembourg | 9

Operational Risk Management Process

People - Stakeholders - Processes - Systems

There is a synergistic relationship between Risk Management and

Lean Six Sigma Methodology

10 | Lean Six Sigma in Luxembourg

How KPMG Advisory

Trends in Organization Structure

Process Improvement Department applies an approach based on several

Use of Key Risk Indicator (KRI)

Indicators as first time right or one stop are followed.

Use of Key Performance Indicator (KPI)

Use of processes modeling tool

Use any quality tool

Lean Six Sigma in Luxembourg | 13

Eric Belleflamme - Ren Brisbois

Company sector: Fund Administration

In line with EFAs priorities, the Process Improvement department is

Trends in Organization Structure

Approach based on LSS methodology

Use of Key Risk Indicator (KRI)

Use of Key Performance Indicator (KPI)

In the context of NAVs production:

Use of processes modeling tool

Use any quality tool

Lean Six Sigma in Luxembourg | 15

To meet our objective, RBC Dexia is committed

A: the Architects, who work on the direction,

Trends in Organization Structure

Project Management defines the approach that has to be implemented.

Use of Key Risk Indicator (KRI)

Use of Key Performance Indicator (KPI)

Claims from customers and failures arise from 3 sources:

Use of processes modeling tool

Define project goals

Document and validate the current

Improve the process by eliminating defects

Implement controls of future processes

A: the Architects, who work on the direction,