After overtaking General Motors as the world’s largest car maker in early 2009, Japan-based Toyota Motor Corp. is now facing withering criticism from its own shareholders and the U.S. Congress as a result of the accelerating and braking systems in its cars, which have led to the recall of about 9 million vehicles worldwide as…
Message: 16306 Posted by: Eric Posted on: Thursday, 25th July 2002 My company is actively deploying Lean Mfg principles. To this point, we have not been heavily involved with Six Sigma. Although recently our Customers have heightened our awareness of Six Sigma by asking/ requiring us to participate in their Six Sigma efforts – including…
Businesses today generally understand they need to do as much as possible to conserve energy and water, reduce waste and greenhouse gas emissions, and minimize their environmental impact overall. Societal pressures from customers, increasing regulation and economics all make this a fact of life for them. Most are taking steps to address these issues, consulting…
Michael George, chairman and CEO of George Group, answers common questions about integrating the Lean and Six Sigma methodologies.
Both the Lean and the Six Sigma methodologies have proven over the last twenty years that it is possible to achieve dramatic improvements in cost, quality, and time by focusing on process performance. Whereas Six Sigma is focused on reducing variation and improving process yield by following a problem-solving approach using statistical tools, Lean is…
Once upon a time there was a company who decided to implement Lean manufacturing. They hired a large prestigious consulting firm who created the grand strategy and trained everyone in lean thinking. Significant operating improvements were identified. It was all documented in a report two inches thick. Teams were launched, a lot of activity took…
With many issues facing the U.S. healthcare system the task of “fixing” it seems insurmountable, but the appropriate implementation With so many different issues facing the U.S. healthcare system the task of “fixing” it can seem insurmountable. Every healthcare executive knows the litany of challenges: rising costs, inadequate insurance coverage, capacity constraints, patient safety concerns,…
This is a familiar question that is often addressed by organizations. In fact, it is the wrong question. These concepts are nothing more than tools in your management toolbox. You don’t fix a watch with a hammer, and you get the same results when you deploy Six Sigma, Lean and Kaizen incorrectly. The fact is,…
There are continuing questions about the relationship between Lean manufacturing and Six Sigma techniques. This relationship has been expressed as follows: Stretch the process applying Lean techniques Solve the problems of deviation from the standards Ensure maintenance of the improved status using Six Sigma techniques However, if the system and processes are too poor, stretching…
Organizations are often challenged with managing seemingly unmanageable work volumes with available staff. At times, staff may feel overwhelmed with high work volumes, or underutilized during periods of low work volumes. When a management team finds itself confronting these issues, team members may ask the following questions: How can staff respond to internal and external…
Increasingly, organizations that use Six Sigma are making an effort to integrate Lean into their existing process-improvement framework. For many, combining Six Sigma’s focus on process quality and Lean’s emphasis on turn-around time results in more high-impact, quick-hit projects. To gain this advantage, however, organizations must face a difficult obstacle: integrating Lean without creating ripples…
Extensive training and a thorough understanding of complex analytical tools are required to successfully perform traditional Six Sigma projects. Although this careful and methodical evaluation is an invaluable problem solving technique, traditional Six Sigma projects can be time consuming and must be carefully selected. Lean projects, on the other hand, are different. Lean is intuitive,…
Until relatively recently, many quality professionals considered the term “Lean” to only be applicable to the manufacturing giants of industry. Lean, first created as a part of the Toyota Production System, is an operational approach and methodology embraced by world-class companies around the globe. With proven results, Lean has made its way into non-manufacturing industries, such as insurance, banking and even healthcare
The local senior leadership of the U.S. Coast Guard Finance Center was confronted by the problem of maintaining high levels of service in its accounts payable (AP) process in the face of increasing process complexity. Compounding the issue was the fact that the center’s information technology (IT) systems had been modified to accommodate the growing…
Will Lean practices take root within an organization and lead to transformational change? That depends on the organization’s culture and the role that leadership plays. Within a traditionally structured organization, ideas and direction flow primarily from top to bottom, or executive to worker level. This may be expedient in some ways, but it also can…
Every Lean Six Sigma deployment leader must eventually confront the critical decision of how the various Belt roles should be allocated and deployed throughout the organization. Lean Six Sigma has existed for more than 10 years now in a variety of manufacturing, service and distribution environments, and through trial and error fairly standard niches have…
Roy Madsen, Senior Advisor to the CFO and Lean Six Sigma Champion at the Office of Comptroller of the Currency (OCC), said his organization had long encountered a classic catch-22: “From 5 to 10 percent of our workforce each year are people hired into entry-level examiner positions, the majority who have to move to a…
To survive in today’s competitive software-development market, organizations need to build their capabilities around delivering the best service within customer-stipulated time frames and costs. Increasing productivity – the rate of output per amount of input – is the factor most likely to give an organization an edge over others. Many software-development organizations have realized the…
When initiating process improvement the question often arises which to pursue first – Lean, Agile, Six Sigma or a combination of these tools. There have been case studies surrounding the order of choice – or whether Lean and Six Sigma complement each other at all. Many Six Sigma experts have spent significant time living and…
Value at the point of production does not necessarily translate into value at the point of consumption. Likewise, Lean Six Sigma initiatives focused on the factory floor do not ensure that the end user is receiving that value. As a product moves through the distribution system there are many factors that can diminish its value….
Despite a new lab, Ephrata Community Hospital faced the challenge of meeting the goal of a 60-minute turnaround time for all stat labs. Thus the lab management team chose to learn to use the Lean methodology to improve its lab processes.
Lean improvement of service processes is somewhat different from Lean improvement of manufacturing processes. Efficiency is usually a measure of speed and cost and Lean improvement in efficiency is achieved by eliminating waste in time or resources. Effectiveness is usually a measure of quality and the overall objectives of the enterprise in that regard. If…
Having found that lab results assist clinicians in more than 70 percent of their patient management decisions, Virtua Health recognized that improvements made to lab processes would have a ripple effect on patient wait times in critical departments. For instance, blood work determines many emergency department (ED) decisions, and lab test results influence patient discharge….
As is true throughout virtually all areas of business across diverse industry sectors, Lean Six Sigma principles and practices applied to research and development (R&D) and product development in the pharmaceutical and biotechnology industries have a dramatic effect on reducing cycle times and the cost of developing new technologies, products, and protocols for research and…
Process improvement teams at Virtua Health system’s 95-bed Virtua West Jersey Hospital Berlin achieve notable results by using Lean to make visual and operational improvements in the emergency department, operating room and central sterile supply.
Because I live in the suburbs, driving downtown to work can be an unnerving experience on the best of days. Even when there are no accidents or stalls, there is a particular stretch of road where the six-lane highway merges into three lanes, creating long traffic jams. Theory of constraints would suggest that there is…
Developers in an agile setting may want to familiarize themselves with this simple set of Lean tools – quality function development, design structure matrix and visual control board.
A good acronym for the framework by which an organization can implement Lean is LEAP – learn it, explain it, adapt it, provide it. The 5As – assessment, awareness, association, adherence and ascendancy – are the steps to take.
Some common messages are beginning to emerge from several software-relevant areas – Six Sigma for software, Agile development and Lean thinking. The links between Design for Six Sigma (DFSS) and Agile have been explored recently, but now a broader view yet can illustrate the way that Lean thinking, evolved from just-in-time manufacturing, aligns well with…
A strong possibility exists that some organizations using Six Sigma are failing to cash in on the true potential of the methodology. This can happen when proper care is not taken to understand what needs to be integrated with the Six Sigma methodology to make it effective, comprehensive and a focused approach to solve real-life…
Successful transformation to a continuous process improvement culture is arduous. It requires an enterprise approach that engages the entire organization and challenges its norms. It requires knowledge of new tools and methodologies, and a level of internal discipline beyond that in which most organizations operate. Most organizations are addicted to quick fixes and immediate results….
Lean is gaining wide acceptance in these troubled times of recession across the globe. Organizations are striving to be more efficient in order to create more value for their customers. Many are using a project approach to Lean, which means focusing on a specific process and improving that process to achieve a certain output metric….
Practitioners must think “lean” from the beginning when they are starting an initiative in a certain area. Part of their job is to transfer the Lean philosophy. To do this effectively, they must be role models who live Lean all day, all night, all the time – this will earn them credibility. If not, a…
In a service organization, the most efficient method for cutting waste is to attack anything and everything that is not done right the first time. This concept, known as first time right, involves making sure that all activities are carried out in the right manner the first time and every time. Examples include a customer…
Information technology (IT) organizations increasingly are under pressure to improve their service and process capability. In the quest for improvement methodologies, organizations often adopt a “pick one” strategy – with Six Sigma being the widely favored choice. However, it is possible to integrate Lean and Six Sigma and reap the full benefits that these methodologies can…
Home mortgage loans in the United States usually closed in about four weeks even a couple of years ago. Some on-line mortgage loan originators are doing the same closings in about two weeks now. Safeco, one of the largest insurance services providers in the country, needed a week to make any changes in coverage in…
A growing number of organizations are studying the commercial use of radio frequency identification (RFID). Several large companies have invested large sums in RFID development, and companies such as Wal-Mart plan to require RFID compliance from their suppliers. Nonetheless, many companies do not yet have a full grasp of what this technology may mean to…
Excessive – and often redundant – documentation can often be found in organizations handling outsourced projects. To overcome this waste, follow a simple plan for leaning existing documents, and for creating new Lean documents.
Lean, like other process improvement methodologies, is based on the big idea from the 1980s that a business is composed of a series of processes, a value stream, that delivers value to its customers. A process is Lean if it uses only the absolute minimum of resources (material, machines and labor) to add value to…
Organizations can profit from learning to think in terms of Lean, a philosophy that aims to eliminate waste (in Japan, where Lean was developed, the term is muda). Lean attacks waste mainly by shortening the time between the customer order and shipment. Based on a customer-focused view, six steps can provide a strong foundation for…
“Let the process flow.” “Let the customer pull.” This is what is written in manufacturing books about making processes Lean. But it is not always that simple. Consider this banking example. A customer arrives at a bank branch: He enters, is welcomed by an employee and offered a cup of coffee. He explains his interest…
Lean government. The very idea sounds implausible. Even to the seasoned Lean practitioner, the idea of a Lean government sounds far fetched. Governments are traditionally seen as the epitome of bureaucracy, and the guardians of red tape, incomprehensible forms and endless queues. But there are workable Lean strategies for governments seeking to reduce waste and…
The process improvement journey at Jordan Hospital took a large step forward last year when the organization was introduced to Lean Six Sigma concepts as part of a departmental optimization effort for its internal pharmacy.
Lean is a wonderful experience when deployed properly and can be a nightmare when it is not. When properly deployed, a company has productive and relatively happy employees, increased efficiency, on-time deliveries and all sorts of other desirable outcomes. When it is not deployed properly, a company can have angry customers, frustrated employees, late deliveries,…
One of the biggest challenges for Six Sigma practitioners in financial services is developing the ability to recognize waste. Imagine an “overnight pack” entering Bank One’s wholesale lockbox process for processing remittance payments. By the time it has been through every step, up and down the elevators, back and forth between departments, it would have…
When delays and other issues began to impact patient satisfaction, University Medical Imaging (UMI) began a process improvement and training program. Located in Brighton, New York, USA, UMI provides outpatient magnetic resonance imaging (MRI), computed tomography (CT), ultrasound, urography and general radiologic services. Through an initial scoping process, report turnaround time surfaced as a key…
Digital check processing. Fraud detection. Compliance monitoring. Trading floor analytics. These are all integral functions for many modern financial service institutions. And all have one thing in common – they require a huge amount of computing power. One approach to providing fast responses even with highly complex computations is distributed computing, or creating a shared compute…
Since its introduction nearly two decades ago, Six Sigma has been embraced by many organizations and industries involved in manufacturing and transactional services as a cost-effective way to improve quality and productivity. As a method to eliminate variation and defects, Six Sigma makes use of a structured approach and statistical tools to find the root…
A P&L manager who is preparing a monthly report starts gathering the information he needs. He realizes that this month’s sales figures are not broken out by region, so he calls accounting and asks for the regional split as quickly as possible. He also discovers that he has updates on only three of the four…
The experience of a European life insurance provider highlights the lessons learned from transferring Lean from the shop floor to the office as well as providing a deployment model that integrates Lean, Six Sigma and process management.
Randy Woods
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