Before a process can be improved, standards for performance must exist. If the standards exist but are not being followed, the first step is to bring practice back to standards. If the standards exist and are being followed but the output is not acceptable, the standards must change or the definition must be revised. Figure One (see above) depicts a SIPOC diagram which is a wonderful tool for creating a process standard. (click on the figure to make it larger)
In short, Six Sigma is a tool for managing the SIPOC diagram and thus, business process improvement. The core of Six Sigma is DMAIC. Tell me where this model would not apply-
1. (D)efine the project and the opportunity for improvement
a. Form a team for leading process improvement
b. Document the voice of the customer
c. List the opportunities for improvement
d. Determine measurable goals for process improvement
The output of this phase is a project charter which is, among other things, a business case for the project
2. (M)easure the process to be improved
a. Map the process and collect as much data and/or information as you can
b. Understand the key inputs to the process and the major outputs
The key output of this phase is a process map which could be as simple as a flow diagram and as complex as a value stream map.
3. (A)nalyze the process
a. Take what you measured and analyze the data and/or information.
b. Document what you learned.
c. Prioritize the process inputs in terms of their relationship to process outputs
The key output of this phase is a root cause statement.
4. (I)mprove the process
a. Using the root cause statement, plan improvement action(s)
b. Carry out the actions
c. Verify that the actions worked
d. Make adjustments, if necessary
5. (C)ontrol the process
a. Implement process controls to hold the improvements
b. Examples of controls are process audits, 5s audits, and statistical process control
The key output of this phase is a control plan
A current driving force for many companies is the need to become lean. Lean is a broad topic and, simply put, means systematically eliminating waste and minutiae from business processes. It is all about speed in today’s economy. How quickly can I make a quality product or provide a world class service? How quickly can I deliver (on time) to the customer? If I make an array of products or provide a multitude of services, how quickly can I change my process to efficiently meet changing demands of my customers?
It’s all about time. More time means less capacity, less income, and more costs.
Some companies seek to become lean because of dictates from their industry. To be a market player, you must become lean to compete. Others join the fray because it is the language of the day. But make no mistake, there is a global race to eliminate waste and become more efficient. Call it lean or just plain process improvement. Those who fail or fall behind may have a tough road ahead in the current business climate.
Six Sigma is a great mechanism for becoming lean. Hence the term Lean Six Sigma. Whether it’s quality improvement or waste elimination you seek, the five step process of Six Sigma can be applied. Here is a framework for Lean Six Sigma:
1. (D)efine the project with a project charter. The charter should include the voice of the customer, a business case for becoming lean, a measure of performance for the project, and goals for the project. Measurables may include processing time, waiting time, or response time. Remember, time is a critical variable in lean.
2. (M)easure the process. Start with a value stream map which is a very detailed process flow diagram showing the flow of your product or service, the flow of information in your organization, and areas of waste within the process flow. As part of the map, establish times for completing each process step. It is a good idea to videotape the work at each process step for analysis in the next phase.
3. (A)nalyze the process. You have the map. You have times and the tape. Now as a team, analyze the information. What does the map tell you? Identify the areas of waste. Watch the tape. Brainstorm for improvement opportunities.
4. (I)mprove the process. Several lean tools can be used to improve a process:
a. 5s is a great tool for workplace organization. Just by removing clutter and becoming more organized, you eliminate a large portion of waste.
b. Mistake proofing takes a holistic and customer oriented look at a process and points out areas of risk. Once you know the areas of risk, you can implement actions to mitigate risk.
5. (C)ontrol the process: Once you eliminate waste and become lean, implement controls to remain that way. A great control is a 5s audit. You clean up the workplace and establish a place for everything. You sweep, dust, and wash to establish a standard for cleanliness. Well, if this is the extent of your effort, it will not take long for the environment to deteriorate. Implement an audit to hold the improvement. Part of 5s is establishing standards for workplace cleanliness, layout, etc. Auditing is nothing more than periodically checking actual practice to standards. If they don’t match, action must be taken under the leadership of management.
Here are real examples of six sigma and lean six sigma projects completed in 2008:
Decrease Variation in Key Product Characteristic (Classic Six Sigma Project)
The company sold and marketed its product with one key characteristic. Customers were complaining that the characteristic was not living up to the marketing. The Six Sigma Black Belt taught and coached a team through the DMAIC process to find sources of product variation. Highlights of the project were:
1. A process for measuring the characteristic was established
2. An objective standard for the characteristic was implemented
3. A risk analysis of the process was developed and highlighted several risk areas for product variation. Corrective actions were implemented to mitigate risk.
4. It was learned that a major source of variation was a key vendor’s process. The vendor became engaged in the DMAIC process.
Reduce Order Time in Customer Service Department (Lean Six Sigma Project)
A customer service department wanted to eliminate waste from the process for completing orders. The project measurement was order process time which was measured from receipt of order to delivery of order. Using the DMAIC process, the process was videotaped for a significant period of time. Several time measurements were taken during the trial runs. After watching the videotape and analyzing the time data, the team brainstormed for areas of waste. The brainstormed list was prioritized and improvement actions taken. The processing time was significantly reduced.
Reduce Time for Pulling Orders in a Warehouse (Lean Six Sigma Project)
A warehouse department wanted to eliminate waste from its process for pulling orders and loading trucks. The project measurement was processing time. Using the DMAIC process, the team videotaped the process and timed each process step. The team watched the videotape, studied the time data, and brainstormed for improvement opportunities. The improvement opportunities were prioritized and implemented. The total processing time was significantly reduced.
Value Stream Map for Manufacturing Plant (Lean Six Sigma Project)
A plant manager was agonizing over excessive costs and his inability to identify root causes for the costs. He needed information and data to help him determine where to allocate resources. Using the DMAIC process, we created a value stream map of his main product’s process. Along the way, multiple time studies were done. The map clearly identified areas of waste and opportunities for process improvement. The map was the information the plant manager needed.
Reduce Process Time for Manufacturing Process (Lean Six Sigma Project)
A chemical manufacturer wanted to decrease total time to process an order. Using the DMAIC process, a value stream map was created and the process was videotaped and timed. By analyzing the output of the measurement, actions were implemented that yielded a significant reduction in total process time.
Becoming lean is not easy and is a journey that you must be willing to take. The road will be littered with forces telling you to give up but there must be a constancy of purpose to your effort. The road will be less troublesome to navigate if a structured approach is employed. Six Sigma and Lean Six Sigma pave the road to successful implementation of lean.
For six sigma consulting, please visit www.qualitymindsinc.com
For six sigma green belt and six sigma black belt online certification, please visit www.cpionlinecourses.com
Stephen
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