Escolar Documentos
Profissional Documentos
Cultura Documentos
_________________________________
Developing
Developing aa Lean
Lean Six
Six Sigma
Sigma Mindset
Mindset
_________________________________
What
What isis Lean?
Lean?
_________________________________
What
What is
is Six
Six Sigma?
Sigma?
_________________________________
The
The Power
Power Laws
Laws of
of Speed
Speed
_________________________________
The
The Power
Power Laws
Laws of
of Quality
Quality
________________________________
Page 1
The Journal of Profits through Process Innovation0
Have you ever sat down to figure out how much money painful. Still is. Studies have shown that downsizing
you're losing because of misses, mistakes, errors, will cost you 25% of all employee productivity. So
omissions, defects and delay? If downsizing better save more than 25% or you'll have a
your business is like 99% of all net loss.
businesses, you're blowing 25-
40% of your profit margin to deal Let me ask you this question: “If you had 25% more
with, remedy, resolve and mitigate staff, what new and interesting customer serving projects
these kinds of problems. Now, would you undertake? What new products or services
maybe your people are perfect and would you create? What possibilities would you
never make mistakes, maybe your embrace?” That’s the power of Lean Six Sigma: more
processes are so mistake-proof profit from streamlining your existing processes which
that nothing ever goes wrong, but will free up resources to do things you just don't have
be honest: Isn’t there some level time to do.
Jay Arthur of daily crisis management that In the phone company, I worked with teams that found
you ways to save tens of millions of dollars. Since I left the
wish didn't exist? Aren’t there too many complaints, too phone company in 1996, I’ve helped other companies
much rework, too much waste, too much fire fighting and find ways to simplify, streamline, and optimize their
too much heroism by employees on a daily basis? processes to add $25,000, $250,000 or more to the
Fifteen years ago, I was working in what Henry Miller bottom line. The methods and tools are simple, but only
once called the “Cosmodemonic Telephone and one company in 50 will take the time to learn and apply
Telegraph Company.” Like most monopolies, we could be them. Most people would rather rely on gut feel, common
inefficient and ineffective as long as we didn't irritate too sense, and trial and error to find and fix the problems in
many customers or regulators because we could raise their business. But here's what I've learned: at some
our rates to extract our government specified rate of level of speed, quality and profitability these inherent
return. Around that time, Total Quality Management problem solving tools stop working. That's when you
(TQM) was all the rage and I got involved because need a new and improved toolkit to jump to new levels of
competition from other phone and cable companies was performance and profitability.
on the rise. One way or another, we were going to have If you’re open to it, this magazine is packed with insights
to start to squeeze our costs to maintain our margins. and resources to accelerate your productivity and boost
Downsizing is one way to get results. It forced managers your bottom line.
to stop doing all kinds of useless things, but it was pretty Jay Arthur
Page 2
Lean Six Sigma Simplified
Page 3
The Journal of Profits through Process Innovation
Mindset
slight edge in marketing and sales that will allow them to owners will take time out of their hectic schedule to have
get or keep a customer. The only problem is that this their cars serviced, most never think to do the same for
elusive edge is constantly in peril from competitors and the their businesses.
fickle perceptions of customers. You can never fully
control this aspect of your cash flow. Do you feel like your business is controlling you, not the
other way around? Can you leave your business or
You do, however, have complete control of the processes department in the capable hands of your employees or
and technology inside the gates of your business. Every does it demand too much of your attention? Is your
process leaks money. Even if you only make one mistake business an asset that any sane business person would
in every 100 orders, bills, purchase orders, products or want to buy or franchise, or is it too chaotic?
services, that one percent error rate can add up to 6-12-18
percent across your business. In the 1990s, Michael Gerber captivated the attention of
business owners with a book called the E-Myth. He
The Juran Institute has found that the cumulative cost of argued that most people spend all of their time working in
mistakes, rework, and scrap will add up to 25-40% of your their business, but most never work on their business,
total expenses. Don’t believe it’s that much? Spend a day creating and improving the processes and systems that
tracking every mistake, glitch, and customer complaint in minimize mistakes and maximize output. If you want a
your business. Then calculate the cost of finding and fixing reliable, dependable business that consistently produces
each one. How much time does it take? What does it cost? predictable results, you will need proven methods and
If you and your employees weren’t fixing the mistakes, tools to make it happen.
what could you be doing instead? Multiply this by the
number of days in the week, month, or year. Ouch!
Page 4
Lean Six Sigma Simplified
Secret #2: Become Process-Oriented of these two methods to solve the more mysterious and
complex problems begins to fall off. Eventually, they stop
It’s easy to be seduced by the excitement of crisis
working all together. This early-success and later-failure
management and firefighting. It becomes a way of life in
syndrome affects all problem-solving methods. It’s often
most businesses. When daily heroics are required to
shown as an S-curve.
avoid missing commitments and preventing defective
products from escaping into the hands of customers, Throughout time, people have routinely found ways to
companies come to rely on heros. solve seemingly unsolvable problems. Edison invented the
light bulb. The Wright brothers figured out how to fly. But
Develop a This is another mistake. People-
to do this, they invariably had to invent new ways to solve
oriented businesses believe that
Plug the quality and productivity are a function
problems that exceeded the grasp of the old methods.
Page 5
The Journal of Profits through Process Innovation
eliminate unnecessary mistakes and errors. As a certified Six Sigma Black Belt
with more than $30,000 of Six
Your people are busy, but your product is Sigma training under my belt I feel I
am qualified to state categorically
idle 95% of the time. Use the power laws of that your products and methods are
speed to eliminate delays and shock truly outstanding and, most
important of all, they get RESULTS.
customers with your responsiveness. –Brittain Ladd - Manager of Domestic
Transportation Michaels Stores, Inc
What is Lean?
Lean has simple goals like:
♦ 30-60% reduction in Turnaround Time (TAT) ♦ Reduction in defects
♦ 20-40% reduction in floor space requirements ♦ Increased quality
♦ 20-30% improvement in equipment capacity ♦ Financial savings
♦ 20-50% improvement in productivity ♦ Organized workplace
♦ 30-60% reduction in inventory ♦ Predictable, manageable workload
Lean Simplified
Lean focuses on eliminating delay. • Spaghetti Diagram - to vi-
Lean
The first step to breakthrough improve- sualize the flow of work
ments starts with reducing the time to • Value Steam Mapping - to
perform your mission critical processes. identify delay and rework
Analyzing processes to eliminate delay in a process.
and make them faster follows the FISH
With these three tools you can elimi-
process:
nate most problems associated with
Focus - to identify the key areas and
delay.
opportunities for improve-
ment. New! Lean Simplified Video (#262).
Improve - to reduce delay and rework This 1-hour video covers the seven
that reduce lead and turn- types of waste, how to do the 5 Ss —
around times. Sor t, Straighten,
Sustain - to stabilize and sustain the Shine, Standardize,
improvements. Sustain—and how to
Honor - to recognize, reward, and re- redesign your work
focus efforts. flow for optimum pro-
There are three key tools in solving prob- ductivity and quality.
lems with speed: ($97)
5S • shine,
The 5 S's - to sort, straighten,
standardize and sustain.
Page 8
Lean Six Sigma Simplified
Six
Six Sigma focuses on reducing de-
fects, mistakes, and errors. Six Sigma 6 Sigma, you will need a more robust
is a results-oriented, project-focused ap- toolkit and methodology.
proach to quality, productivity, and prof- Like most toolkits, you don't need to
itability. These reductions translate into know everything to do anything. You only
cost savings, profit growth and competi- need a few key tools—line graph, pareto
tive advantage. And the process is simple: chart, fishbone diagram, and a control
1. Focus on key problem areas by chart—to make and sustain dramatic,
counting and categorizing your misses, productivity and profit enhancing im-
mistakes and errors. provements. To go from 5-to-6 sigma,
2. Improve by eliminating defects. Root you'll need some more exotic tools, but
Sigma
cause analysis teams can identify you won't need them for several years.
countermeasures in a day or less. If we applied Lean Six Sigma to
3. Sustain the improvement by moni- • Tax returns, there would only by 340 errors in
toring key measures using SPC. the 100 million returns filed each year.
4. Honor your progress. Recognize, • There would only be 3.4 deaths per million
reward, and refocus the improvement hospital admissions instead of 1 per 100 as
effort. reported by the National Academy Press.
Most profitable companies achieve a 3- • Your business...how many customer complaints
Sigma level of quality using common and how much crisis management could you
avoid?
Page 9
The Power Laws of Speed
Speed
service is far greater than the actual time spent adding
value to the product or service. Most products and The 3X2 Rule
services only receive value for 5% of the total delivery Watch Your When you slash your cycle time to
time. Why does it take so long? Delay. The product is Product, do mission-critical processes, you
sitting idle far too long between steps in the process. Not enjoy growth rates three times the
Your industry average and twice the
Examples: A manufacturer of heavy vehicles only
profit margins.
spends 2 days assembling a vehicle, but 45 days People!
preparing the order. Value added analysis will help you find ways to
eliminate the delays between each step of the
A claims processing group only spends seven hours
process. Employees won't have to work any harder;
processing a claim, but it takes 140 days for each claim.
you just eliminate the delay.
They reduced it to 40 days.
Page 10
The Power Laws of Quality
Bell-Shaped Mindset
Because improvement principles evolved predominantly Americans have over half the wealth. 4% of IBM's
in a manufacturing environment, there's a lot of emphasis original 360 operating system contained 64% of the
on the "normal" or bell-shaped curve, where product bugs. A 6% medication error rate creates over $9 Billion
measurements are distributed across a range of values. in unnecessary medical costs each year.
Unfortunately, this emphasis has
blinded most leaders to the reality
To Increase This suggests that you can maximize
4% Of Your your results by minimizing your
that defects tend to cluster in Your
Business investment and narrowing your focus. It
small parts of the business; they Results,
Causes Over aren't spread all over the
also suggests that to accelerate
Narrow results, you will want to reduce the
50% Of The workplace.
Your number of people involved. Wow! More
Waste, Rework, What if you could get over half of bang for the buck!
Focus!
and Lost Profit the "benefit" from improvements
Quality
by working on just 4% of the Learn How To FISH
business? There are four simple steps to the improvement process:
You can! Pareto's 80/20 rule is a power law. Power laws 1. Focus on the 4%.
aren't linear, they grow exponentially. So, if you believe
in Pareto's rule, you have to believe that it applies within 2. Improve the 4%.
the 20%: 4% of the business will cause 64% of the 3. Sustain the improvement.
waste and rework.
4. Honor Your Progress
The 4-50 Rule Then do it again on the next 4% and the next. This crawl-
Wherever I go, I find that four percent of transactions walk-run approach to performance improvement will
cause over 50% of the rework. Four percent of systematically minimize your investment and maximize
your results.
Page 11
The Journal of Profits through Process Innovation
SPC Simplified
One-Day 4,0DFURVDQG
'DWD0LQLQJ Workshop!
Understand How to Create a Measurement Dashboard
Struggling with how to choose the right Workshop Outline
chart for your process and data? Or are you Overview
spending all of your time drawing control
• Relationship between Lean Six Sigma and
charts but don't know what they're telling
Statistical Process Control (SPC)
you? This workshop is designed for quality
managers and employees struggling with Control Charts and Stability Analysis
the seemingly incomprehensible statistics • Variable data
and analysis required for SPC: control • Attribute data
charts and histograms. This workshop is a
• Types of charts (c, p, np, u, XbarR, XmR)
hands-on course tailored to your business
that provides a simple, structured way to • Choosing the right chart
choose the right chart, graph the data and • Analyzing stability
then interpret the results. • How can we tell if a process is stable?
Learn about how to use these charts to
create a dashboard of performance. • Common and special cause analysis
And we tailor our training to your company's • Demonstration with participants data
data and needs, because you learn better Histograms and Capability Analysis
when it's relevant to your job. We like to • Understanding capability
develop and analyze charts of your data • Cp and Cpk
right in the classroom so that you'll be ready
to start your improvement efforts immedi- • Demonstration with participants data
ately.
Is it right for you? Materials Provided
• Do you have 10 or more trainees? • SPC Quick Reference Cards
• Would you like to: • 30-Day Evaluation Copy of the QI Macros
- Save money on tuition and travel?
- Get training tailored to your needs? Investment: $,0086RQO\
- Start getting results quickly? (Includes travel within the 48 states.)
Page 13
Ready to Step up to Lean Six Sigma Simplified?
Jay Arthur, The KnowWare® Man, works with operational Bronze Level
managers who want to plug the leaks in their cash flow. Twelve months of email coaching
Using Jay’s approach, one wireless company, saved only $997. This includes:
$250,000/month by eliminating their top five order errors in 24 email questions answered
just four months. Another Baby Bell saved $20 million in
including data analysis plus two 30
postage expense and $16 million in adjustments. One
health care company reduced rejected claims by $20 minute phone consultations. Send
million. A mail house developed ways to prevent using the Jay your data about defects or delay
wrong lists, saving $5,000 or more per list. and he'll send back the
recommended improvement
Jay learned the Deming Prize Winning improvement projects.
Jay Arthur methodology in 1990, but teams struggled to solve
problems and create results. Dissatisfied with anemic Silver Level
results and slow pace of change, Jay began to apply the improvement methods Twelve months of telephone
and tools to the improvement process itself. He found ways to dramatically
coaching (1 hour/month) plus the
shorten the 5-20 day training process to a day or less. He calls this just-in-time
training. He found ways to shorten the problem solving process that had been email support described above.
taking up to 12 months or more down to three or four days. And he found ways to Only $4,777 (about $400/mo).
ensure that no team would ever start a project unless they were assured of
success. Gold Level
All of the phone and email support
Thousands of people in companies from healthcare and telephony to shown above plus two days of
manufacturing and multi-level marketing are using Jay’s Lean Six Sigma Simplified onsite leadership development, data
system and QI Macros software to make breakthrough improvements.
mining or root cause analysis.
Call 888-468-1537 to enroll. Only $15,000. (U.S. only).
Because of his other commitments,
Jay can only accept a limited
number of coaching clients each
year. So act now.
Page 15