Posts Tagged ‘lean-six-sigma’

Lean Six Sigma and the 80/20 Rule

Thursday, June 13th, 2013

Most businesses recognize the importance of efficiency. Getting the job done at the lowest cost, with the smallest margin of error, and best results are goals of every company, no matter how they phrase it. How they measure their success at achieving these goals can be measured in a variety of ways. Profits, waste reduction, customer satisfaction, and increased sales are just a few of those measurements.  Utilizing the Lean Six Sigma methods has been proven to help companies from a large variety of industries to reach their goals, and achieve high efficiency.

One of the most important factors in the Lean Six Sigma method is to identify the areas or issues that are causing delays, errors, or loss. By analyzing the issues that are a problem, a company can focus on those areas. However, there may be a large number of factors causing the problems. When faced with so many issues, how does a company know where to focus their energies? This is where the Pareto Principle, or the 80/20 rule, comes into play. The Pareto Principle was originally discovered by Vilfredo Pareto in 1906, in Italy. It was his discovery that 80% of land in Italy was held by 20% of the population.

By utilizing Pareto’s idea, quality pioneer Dr. Joseph M. Juran introduced what he called “Pareto analysis” to the quality field. In his later years Dr. Juran confessed that he wished he’d named the approach “Juran analysis”. Working with this principle proved that the 80/20 idea applied to many areas. Working on this factor, it was discovered that this 80/20 idea applied to many areas.  In most circumstances 80% of the outcome was produced by 20% of the input. The same holds true for issues in a company’s production. To simplify the idea, if a study of issues in a company identifies 10 problems, the majority of the problems are usually caused by 2 of those issues. By focusing the majority of resources on those 2 issues, a company can solve 80% of the problem.

By utilizing the Lean Six Sigma techniques of identifying issues, and discovering the areas to focus on, a company can achieve results that will improve efficiency. Increasing efficiency can improve a company performance in multiple areas, such as profits, output, employee morale, reduction in costs, and margin of error.  The Lean Six Sigma program can help any business concerned about productivity, cost, and results. For more information on how the Lean Six Sigma can help you company, you can contact The Pyzdek Institute. We can help you determine how Lean Six Sigma can help your company or organization.

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Lean Six Sigma: It’s Working in L.A. County

Thursday, June 6th, 2013

In February, Sandra Spencer, an Administrative Service Manager at the Registrar-Recorder/County Clerk’s office in Los Angeles, wrote about how Lean Six Sigma was applied to improve the delivery of services and decrease costs of what her department does. Bear in mind, this is a department that provides birth, marriage and death certificates for the county’s 9.8 million residents, as well as handling real estate records, business filings and voter registrations. It deals with about 200 elections for schools, cities and special districts every year. Daily, the department deals with about 2,000 customers.

In March, 2011, the Department Head, Dean C. Logan, set out to improve the department’s service delivery and turned to the Lean Sigma approach. Six staff members were trained and certified. Those six individuals — working in different areas of the department — each chose an improvement project to work on and of those six, four projects were undertaken.

Trying to improve the services of an agency who offers so many services might seem unwieldy. However, Spencer wrote that the key to solving some of the delivery dilemmas involved the concept of “Shrinking the Change” — that is, tackling a lot of little issues through a series of quick, easily-implemented changes. These small changes, she explained, resulted in a big change.

With management buy-in, the inclusion, input and involvement of line staff, and the advice of a Lean Six Sigma consultant, the department began to receive both internal and external recognition for the improvements they made. With each accomplishment, the staff’s desire to make more improvements increased. One area of the department — the business filing and registration division — was so successful in its desired improvements that it, along with the Lean Six Sigma Team, was recognized by the Board of Supervisors with a L.A. County Stars Award.

As L.A. County has discovered, Lean Six Sigma works. It can work for you, too. Contact us to sign up for your training and certification today.

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Lean Six Sigma White Belt Course Outline

Friday, May 31st, 2013

Lean Six Sigma White Belt

Price: $95.00

SKU: L6SWB

A 4-hour online overview of the Lean Six Sigma approach to eliminating errors, variation, waste and maximizing work flow. When you have finished this course:

  • You will understand what Lean Six Sigma is and why it is important
  • You will know about the most important Lean Six Sigma topics, such as sigma levels, value and muda
  • You will be familiar with Lean Six Sigma terminology
  • You will be familiar with the Lean Six Sigma approach to improvement

The estimated time commitment for this course is 4.0 hours. The course covers the following topics:

Module 1: Waste and Value

  • What is Lean?
  • Types of muda
  • Thinking Lean
  • What is value?
  • What is a value stream?
  • Value added and non-value added activities

Module 2: Value streams, flow, push and pull

  • Value stream mapping
  • Takt time
  • Spaghetti diagrams
  • Making value flow at the pull of the customer
  • 5S
  • Constraint (bottleneck) management
  • Level loading
  • Flexible processes
  • Lot size reduction

Module 3: Perfection

  • Continuous improvement towards perfection
  • KAIZEN philosophy
  • A strategic perspective of Lean
  • A tactical perspective of Lean
  • Elements of Lean production
  • Six Sigma and Lean

Module 4: An Overview of Six Sigma

  • What is Six Sigma?
  • Six Sigma as a metric, a methodology and a philosophy
  • DMAIC
  • DMAIC Case Study
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Lean Six Sigma and Genchi Genbutsu: The Importance of Seeing for Yourself

Wednesday, May 29th, 2013

The goal of Lean Six Sigma, in brief, is to give customers and other stakeholders what they want by focusing on customer needs and maintaining superior quality and minimal waste.  This system combines the revolutionary management philosophies of Lean, which grew from the Toyota Production System, and Motorola’s Six Sigma.  In today’s hyper-competitive market, successfully implementing the quality-focused, customer-driven philosophy of Lean Six Sigma can be instrumental in keeping a company alive.  If you’re ready to find and eliminate the sources of inefficiency and poor quality that could prove lethal for your business, it’s time to “get your boots on”:  genchi genbutsu.

If boots aren’t your style, genchi genbutsu can also be translated as “go and see for yourself.”  According to The Economist, “genchi genbutsu represents a fundamental difference between western and Japanese management styles—whereas in the West knowledge is gleaned and digested in the office or the boardroom, in Japan it is gleaned on the factory floor.”  The concept can easily be generalized beyond manufacturing; the essence of genchi genbutsu is simply this:  optimal decision-making requires that you physically go to the relevant place (gemba) to observe the relevant objects (genbutsu) yourself.  In fact, the term gemba itself is commonly used instead of genchi genbutsu, because the entirety of this concept is actually captured by the idea of place—being on the spot, at the source of the action, to identify and take advantage of opportunities for improvement.

Going to the gemba was fundamental to the managerial approach pioneered and taught by Taiichi Ohno, the father of the Toyota Production System.  According to his student and colleague Michikazu Tanaka, Ohno “never rendered judgment simply on the basis of hearing about something. He always insisted on going to the place in question and having a look.”  It’s convenient to base important decisions on second-hand information, especially when deadlines and obligations are rapidly mounting, but second-hand information is often incomplete or incorrect information, and bad information leads to bad decisions.

Success with Lean Six Sigma requires dedication and consistency.  When declaring Toyota to be 2005′s “Smartest Company of the Year,” CNNMoney provided a powerful illustration of Toyota’s commitment to the gemba attitude and of the dramatic results that can come from “getting your boots on.”  When assigned the task of revamping Toyota’s Sienna minivan for 2004, chief engineer Yuji Yokoya set out in a Sienna on a 53,000-mile North American road trip, crossing the continent five times and letting the road “tell” him how to fix the “small and underpowered” minivan.  As a result of Yokoya listening to the North American roads, the updated Sienna emerged as “the car critics’ darling,” second only to the Dodge Caravan in U.S. minivan sales that year. The new Sienna sported a ti ghter turning radius in response to the narrow streets of downtown Santa Fe.  The gravel of the Alaska Highway had inspired the addition of all-wheel-drive. Roll-up sunshades for the second- and third-row side windows now blocked the bright Mississippi sun.

Along with the necessity of genchi genbutsu, Taiichi Ohno also taught the importance of learning from experience and from experienced experts.  Contact the Pyzdek Institute about our Lean Six Sigma training programs to find out how you can put our experience to work for you.

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Lean Six Sigma for Improving the Contact Center

Thursday, May 23rd, 2013

Customer service, as typified by contact centers in which trained company personnel resolve requests from the public, are not always necessarily thought of as having to be well-oiled machines, but that characterization is inaccurate. There is actually a great deal of investment in software, algorithms, analytics, and integration of multiple channels in order to best match a call with staff members that are most equipped to resolve it.

Contact centers are a natural match for Lean Six Sigma (LSS) as reflected by academic studies. Lean Six Sigma in a Call Center: A Case Study, published by business academics in the UK, explores the applicability of LSS in the call-based service industry. One assumption that the study works against is that LSS is not quite that applicable to service sectors as they do not have the precision and replicability of manufacturing processes. However, it is important to note that customer service is prone to slow processes which are inherently subject to the Pareto principle – the “80-20” rule. Removing the crucial 20 percent of inefficient processes should lead to an 80 percent speedup.

Furthermore, lost calls are a significant detriment to productivity, and an inbound quantity of calls that outstrips the service ability of the call center is also a threat to efficiency. The LSS practice of root-cause analysis is naturally suited for reducing the incidence of lost calls and establishing why spikes in call volume occur in the first place. We must also keep in mind that the call center environment is very hectic – often running on a 24/7 basis. The fact that there is little downtime and bandwidth for planned maintenance can make it difficult to apply LSS in the sector, but if LSS principles can be successfully installed this can lead to streamlining of operations and a decrease in employee turnover, two factors that can improve both work morale and efficiency.Contact the Pyzdek Institute if you are interested in learning more about LSS.

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Employee Engagement is Crucial for Lean Six Sigma Success

Friday, May 17th, 2013

In order for Lean Six Sigma to be successful, there has to be engagement at every level of the production process.  This is especially true for employees, since employee engagement is the key to achieving a maximum return on investment in the Lean Six Sigma program.

Employees trained in Lean Six Sigma techniques can be an enormous asset to a company.  Since employees are intimately familiar with production techniques and processes, they are a valuable resource for identifying inefficient or unnecessary steps in production.  However, simply training employees in Lean Six Sigma techniques is not enough to fully implement the program.  Employee engagement is crucial for the success of Lean Six Sigma.

One of the main benefits that Lean Six Sigma provides for employees is an increased sense of their impact on company profits.  Make sure to provide feedback on the positive impacts that employees make when they use Lean Six Sigma techniques, and consider implementing an incentive program to inspire employees to stay engaged in the Lean Six Sigma process.  If employees are rewarded for producing quantifiable improvements in the production chain, they are more likely to stay invested in the program.

Additionally, while implementing the Lean Six Sigma program into the company culture, take steps to ensure that employees have opportunities to express their thoughts and suggestions.  Employees have a unique perspective on production processes, and are in a position to offer valuable advice or strategies for eliminating waste.  Send out surveys, meet with employees, or set up a social media page on which employees can share their thoughts, suggestions, and successes with Lean Six Sigma.  Giving employees a voice and incorporating them into the implementation of your company’s Lean Six Sigma practices is an excellent way to build employee engagement.

If you would like to learn more about Lean Six Sigma, please visit our website.  We offer several Lean Six Sigma courses, as well as tips for implementing Lean Six Sigma.  If you have any questions or comments, please feel free to contact us!

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Schweitzer-Mauduit International Management Credits LSS for $5 Million in Cost Reductions

Thursday, May 9th, 2013

In its earnings call earlier today, Frédéric P. Villoutreix - Executive Chairman and Chief Executive Officer of Schweitzer-Maudit International Management stated:

“With respect to cost optimization, we have continually improved our track record of eliminating cost from the business, and the first quarter was no exception. Year-over-year, cost benefits from our values Lean Six Sigma efforts and restructuring actions provided approximately $5 million of cost improvements, especially in the paper segment.

“Our success in these efforts are to offset the negative impact on higher pulp prices, as well as some mix issues in our base paper business. We have worked hard to generate strong cost savings to offset inflationary and pricing pressures, and this remains our focus on the long run.”

Schweitzer-Mauduit Int’l reported Q1 EPS of $1.01, $0.09 better than the analyst estimate of $0.92. Revenue for the quarter came in at $194.5 million, versus $195 million reported last year. The stock closed the day at $42.82, up $1.60 (4.08%) on above average volume. Click here to see stock price chart.

To learn more about how Lean Six Sigma can help you, contact The Pyzdek Institute.

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Is Lean Six Sigma for me?

Thursday, May 9th, 2013

If you are like many of us that are looking to improve our personal skills, you may have thought about taking a course or two. Colleges promote their “executive MBA” programs but too often these “MBA” programs are a lot of work, time and money for very little payback. A friend of mine who is a technical recruiter remarked that she was surprised more people had not discovered the value of “Lean Six Sigma” training. It provides productivity skills that the average college graduate does not learn in school.

Lean Six Sigma is a hybrid combination of Lean and Six Sigma methods that has been proven to bring genuine benefit to the employer and the employee. Lean concepts are aimed at eliminating waste from the processes, increasing speed and focusing on what customers consider to be quality, while Six Sigma eliminates the process variations and improves the process according to the customer definitions of quality using specific metrics. If you are trained and certified in this improvement technology you are a valuable asset that is reflected in the higher pay individuals with this training receive.

If you are skeptical, there is no need to initially commit to an expensive training program until you are sure it is for you. You can purchase The Six Sigma Handbook by Thomas Pyzdek and learn what is required to master this technology. Afterwards you can study more and then become certified in a step by step process.

Learning new skills is the best way to pass the time if you are caught between jobs. Rather than watching the news report the high unemployment rates, you can be preparing yourself for a better position than the last. When you scan the want ads next time and see “Lean Six Sigma” as a requirement you could be ready to apply. Employers also like to know they are getting an employee that was willing to invest in their own skill sets too. Learning Lean Six Sigma is a win-win situation for you and your new employer.

For more, please contact us.

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3 Vital Things to Learn about Lean Six Sigma in Under 30 Seconds

Thursday, May 2nd, 2013

Errors rob your company of money. Money you could use to hire workers, increase wages, add new benefits, purchase new equipment, and more. You probably don’t even see the loss. But every time one of your employees inadvertently makes a mistake, it is there.

So what do you do?

Look into Lean Six Sigma. It takes less than 30 seconds to see how Lean Six Sigma can help you in three ways. Specifically:

  • Lean flow eliminates waste
  • Six Sigma is driven by quality
  • Together as Lean Six Sigma they achieve quality without waste

That’s it. Now actually learning, developing, and implementing a Lean Six Sigma program takes a lot more time than a mere 30 seconds. However, the concept is not that difficult to understand.

If you’re still not convinced, here is a little more information about how your organization can eliminate waste and drive quality. Focus on:

Wait Time. Delays due to wasted time between steps occur in every business. But there are numerous tools available to reduce this idle time and increase overall speed. Consider how this fleet management tool from inthinc Technology Solutions, Inc. helped reduce average idle time by 53 percent and carbon emissions by 30 percent.

Poor Quality. Defects in products destroy customer confidence. Meeting quality standards can’t be a sometime thing. When the waitperson gets your meal wrong or the airline loses your bag, your next decision about where to eat or which airline to fly is influenced. 

Variation. Deviating from customer specifications or expectations results in unhappy customers. Whether it is a promise to deliver a part on a specific date or to manufacture it with a defined tolerance, work that falls outside the defined parameters may result in a damaged reputation.

Lean Six Sigma is about reducing all the day-to-day errors in your business operations by eliminating – or at least reducing – delays, defects, and extreme deviation.

If Lean Six Sigma sounds like the right idea for your business, browse my website, review my blog, and contact the Pyzdek Institute for further information.

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Can Lean Six Sigma Make CSI Better?

Thursday, April 25th, 2013

While the CSI (Crime Scene Investigation) teams on television may be able to resolve a case in under an hour, real life criminal cases can take days, weeks, months, even years to finish.

And like many real life police units throughout the country, the police in Monroe County in western New York found themselves faced with a backlog of criminal cases involving DNA analysis.

To eliminate the backlog, decrease case turn-around time, and increase overall quality of lab reports, Monroe County outsourced the crime lab work to Sorenson Forensics. Sorenson is the first accredited forensics lab that offers Lean Six Sigma consulting services for DNA labs. They use the methodology to improve performance, efficiency, and quality. They indicate it has:

  • Helped them streamline casework reviews
  • Eliminated variation, defects, and waste
  • Created continuous, value-added flow

Now Sorenson consults with other forensic agencies to achieve the same results. The goal is to move caseloads through the system more efficiently, quickly, and accurately. Forensics investigators get results in days and weeks, rather than months.

According to Sorenson Forensics Executive Laboratory Director Tim Kupferschmid:

“A Lean Six Sigma process, when effectively implemented into a crime laboratory, results in a dramatic decrease in turn-around-time and the elimination of the existing backlog.” 

While results may vary, Sorenson suggests that using LSS reduces:

  • Operational costs (20% to 30%)
  • Rework (100%)
  • On-time delivery (100%)

Additionally, it improves customer and employee satisfaction.

Remarkable advances in DNA testing and high-tech diagnostics provides labs with the ability to dig deeper into crime scene evidence. The job is methodical and time consuming. The ability to decipher traces of evidence is complicated. Crime labs are “under the gun” to produce reliable evidence.

As with anything new, fear of change in a crime lab makes people nervous. Lean Six Sigma is not a one-size-fits-all solution. Management needs to be involved and support the changes every step of the way. Constant communication is imperative.

However, crime labs have found that LSS offers:

  • Increased team morale
  • Reduced lab-processing times
  • Reduced backlog
  • Increased output
  • Reduced errors

This is great news when you’re constantly up against deadlines. Even better, it results in more crimes solved and more criminals taken off the street.

For more information on how Lean Six Sigma can help your team perform more effectively and offer better results, contact us about Lean Six Sigma training.

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