Posts Tagged ‘lean’

City Uses Six Sigma to Promote Efficiency

Saturday, May 30th, 2009

Spokesman.com | City adds job to promote efficiency | May 27, 2009.

Spokane, Washington has acted to be smart in its cost-cutting efforts by hiring a full time change agent to look at how Lean Six Sigma can help them make smart cuts. Lean Six Sigma is a methodology that has proven itself in countless applications in manufacturing, services, transaction and healthcare businesses. Spokane’s leaders believe that it can help government too.

Earlier this year the City council decided to offer a no-bid contract to the Indiana-based Lasater Institute for up to $90,000 to train 16 city workers in Six Sigma. The newly approved position will  cost about $120,000 a year in pay and benefits.

“All the successful implementations of Six Sigma, be it federal, municipal or even in the private sector, they all have a central office where the program is administered,” City Administrator Ted Danek said.

The move is not without its critics. “If the city of Spokane wanders into it without keen awareness and careful caution of that fact, it could spell disaster at one of the worst times in our economic history.” Says former City Council candidate Donna McKereghan. However, the council voted 6-0 in support of the new job.

Indeed, Six Sigma has already proven itself in Spokane. Six Sigma has already made the city more efficient, leading the city to streamline its approval process for contracts that don’t require City Council support from an average of 29 days to 10 days. According to Danek.

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Health Care Industry Is Said to Commit to Holding Down Costs – NYTimes.com

Tuesday, May 12th, 2009

Health Care Industry Is Said to Commit to Holding Down Costs – NYTimes.com.a

No one questions the fact that health care costs are rising fast. Too fast, probably. Now that the industry has promised to join President Obama in controlling health care costs, I have a suggestion: do it smart. Mindless cutting of health care costs will result in loss of health care quality. Don’t just cut costs, be sure that you are cutting non-value added costs. The best tools for identifying these costs are Lean, Six Sigma, and Lean Six Sigma. To a trained expert in one of these skill sets a casual glance at any hospital reveals mind-boggling opportunities. We see waste everywhere in health care. From the batch-and-queue approach in the emergency departments, to the cumbersome admissions and discharge processes, in the medication errors and medical mistakes. And many, many other areas.

According to Mr. Obama

“These groups are voluntarily coming together to make an unprecedented commitment. Over the next 10 years, from 2010 to 2019, they are pledging to cut the growth rate of national health care spending by 1.5 percentage points each year — an amount that’s equal to over $2 trillion.”

The goal is admirable, albeit arbitrary. Nonetheless, it is a call to action that is long overdue. Let’s all hope, for the sake of our health and the health of our loved ones, that the spending cuts are the right ones.

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A Lean Green Six Sigma Machine

Wednesday, April 22nd, 2009

A Lean Green Six Sigma Machine – Manufacturing & Technology eJournal.

It’s Earth Day, so here’s my obligatory green article.

OK, I admit it, I’m not a Greenie. Don’t get me wrong, I love the natural world. I was born and raised in Nebraska and from the time I was a little boy I spent every moment I could hiking, hunting, fishing, and just enjoying the outdoors. I now enjoy Arizona’s forests and deserts at every opportunity. But I’m also committed to facts, data and real science and I’ve become convinced that modern Greenies are more Earth Worshipers than conservationists. I want to see nature preserved for my grandson, and I fear that it has become a fad that will swing too far in the opposite direction some day.  Still, this article caught my eye. The basic premise is that Lean Six Sigma can help a company become more green.

Of course it can. Lean Six Sigma can take you toward nearly any goal you want faster. Think of Lean Six Sigma as a formula one race car for driving to your goals. If your goal is to become more green, then Lean Six Sigma will make you greener faster. It does this by helping you clarify your green goals, providing a framework for achieving these goals, evaluating the measurement system and identifying critical to quality drivers, building valid models linking causes to your goals, identifying the best improved system, deploying the system, and controlling the new system to assure consistent operation.

If you want to become greener, make your customers happier, or make more money for your investors, then Lean Six Sigma is the way to go.

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Tough Times and Lean Six Sigma

Monday, April 6th, 2009

Tom provides a little background on the current economic crisis, and some pointers to help you survive and prosper.

December 14th, 2008

January 4th, 2009

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President Obama, Rush Limbaugh, and me

Monday, March 30th, 2009

Did Rush Limbaugh really say that he wants Obama to fail? Does it matter? What’s my opinion? (Okay, so nobody asked. But it’s my blog after all!)

Personally, I sincerely hope the world returns to prosperity soon. I think there is overwhelming agreement on the fact that there are few downsides to prosperity. But the great debate is how to achieve prosperity. I won’t argue the relative merits of the different economic systems because I doubt that you care. However, I have a rather strong opinion that spending more money will not, by itself, lead to improvements. Deming used to say (I’m paraphrasing here) that doubling the pay of every worker in the auto industry wouldn’t make any difference in the quality or productivity of the auto companies. Why? Because the systems were the same. Unless systems (root causes) are changed, the results (effects) won’t change. When I look at the plans proposed by the government they largely consist of spending more on, for example, roads and schools without changing the way roads are built or education is delivered. Medical records are to be digitized, while the healthcare systems being automated are not substantially improved beforehand.

In short, I think a good deal of the money being spent will fail to provide any fundamentally different results because the underlying systems won’t be improved by the spending. A penny spent on six sigma, lean, or quality improvement would go a lot further than a dollar spent on the current systems.

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Fake Flow

Wednesday, March 25th, 2009

There seems to be an epidemic in American Management of copying the form of things, without bringing the substance along. I was reminded of this when touring a factory with a team evaluating a potential new supplier. The company had put much of their equipment on wheeled dollies. Such things as jigs, drill presses, etc. were mounted in this way. I’d seen a lot of this during my visits to factories overseas. The objective was to make the factory easy to reconfigure. When orders were received for a new product family the factory could be quickly changed and production would hardly miss a beat. The problem was, the American company didn’t do this. The equipment was movable alright, but it didn’t move. Production was pure batch-and-queue with all of the inventory, quality problems, and waste that this approach entails.

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Good books on Six Sigma and other topics

What is Six Sigma?

By Thomas Pyzdek, Author of The Six Sigma Handbook

For Motorola, the originator of Six Sigma, the answer to the question "Why Six Sigma?" was simple: survival. Motorola came to Six Sigma because it was being consistently beaten in the competitive marketplace by foreign firms that were able to produce higher quality products at a lower cost. When a Japanese firm took over a Motorola factory that manufactured Quasar television sets in the United States in the 1970s, they promptly set about making drastic changes in the way the factory operated. Under Japanese management, the factory was soon producing TV sets with 1/20th the number of defects they had produced under Motorola management. They did this using the same workforce, technology, and designs, making it clear that the problem was Motorola's management. Eventually, even Motorola's own executives had to admit "our quality stinks." Read More...