pmi-mn breakfast meeting tuesday, april 11 th , 2006

© 2005 trissential. All Rights Reserved.1

PMI-MN Breakfast MeetingTuesday, April 11th, 2006

Show Me The Business Value Discover Lean Six Sigma “Best Bets” for Tangible Improvements Part 3

Presented by: Michelle Goodman

[email protected]


• Lean Six Sigma and the Big Picture - Part 1– What Exactly is Lean Six Sigma?– Corporate Deployments– Big is Not Always Better

• Individual Execution – Part 2– Project or Activity Selection and Scoping– Resource Utilization– Comprehensive Communication– Metrics & Results– Personal Corporate Citizenship

• Best Bets Beyond the Office Area – Part 3– Little’s Law – Non-corporate business environments– Working with Small Businesses– Can my community work benefit?

3 Part Series Agenda


Lean Six Sigma Is the Integration of Two Powerful Business Improvement Approaches...

• Goal – Reduce waste and increase process speed

• Focus – Bias for action/ Implementing known solutions

• Method – Kaizen events

• Goal – Improve performance on Customer CTQs

• Focus – Root Cause Analysis/ Developing Solutions

• Method – Black Belts dedicated to projects

Six SigmaCulture+Quality

LeanSpeed+Low Cost

Six Sigma Quality Enables Six Sigma Quality Enables Lean SpeedLean Speed

(Fewer Defects Means(Fewer Defects Means Less Time Spent on Rework)Less Time Spent on Rework)

Lean Speed Enables Lean Speed Enables Six Sigma Quality Six Sigma Quality

(Faster Cycles of (Faster Cycles of Experimentation/learning)Experimentation/learning)


AnalyzeAnalyze ControlControlImproveImproveMeasureMeasureDefineDefine

• Project ID Tools• Project Definition Form• Value of Cycle Time• Net Present Value

Analysis • Internal Rate of Return

Analysis • Discounted Cash Flow

Analysis • PIP Management

Process• RACI• Quad Charts

• Process Mapping• Value Stream Mapping• Process Cycle Efficiency• Lean Six Sigma Metrics• Process Sizing• Kaizen Events• Multi-Voting Techniques• Pareto Charts• C&E/Fishbone Diagrams• FMEA• Check Sheets• Run Charts• Control Charts• Gage R&R• Subjective

Measurement Systems

• Cp & Cpk

• SupplyChainAcceleratorSM Time Trap Analysis

• Analytical Batch Sizing• Multi-Vari• Box Plots• Interaction Plots• Regression• ANOVA• C&E Matrices• FMEA

• Brainstorming, Affinity• Benchmarking• Kaizen Events• Pull Systems

• Generic• Replenishment

• Part Stratification• Setup Reduction• TPM, 5S• Process Flow• Line Balancing• DOE • Hypothesis Testing• Force Field• Tree Diagrams• Gantt Charts

• Check Sheets• Run Charts• Histograms• Scatter Diagrams• Control Charts• Visual Control Tools• Poka-Yoke• Pareto Charts• Interactive Reviews

Lean & Six Sigma Tools


Little’s Law and other Favorite Little’s Law and other Favorite ResourcesResources


Know the Heartbeat

• Plan and execute in 90 day cycles• Fewer people on team – better engagement and

momentum• SMEs (Subject Matter Experts) – best utilized in

small doses• Focused work on fewer subjects (Little’s Law)


Little’s Law

• Lead Time = Amount of Work-In-Process

Average Completion Rate

• You can speed up any process – reduce lead time – by reducing the amount of WIP, even if you do nothing to improve the completion rate


Pull System - Quote-to-Order Process Improvement

Pull System- Moderate Complexity Quotation Work Cell -

Queue:Used to manage staffing requirements

1133

4422

55

66

1

11

11

11

1122

2222

33

33

55

66

55 11

11

11

11

11

4411

11

11

11

11

WIP limit = 48 Units of Work Exits = 20 Units/Day

Avg Cycle Time = “Quote WIP”/Exit Rate = 48 units / 20 units per day= 2.4 days

1

1 25

2

11


Favorite Resources

• Making Six Sigma Last by George Eckes• What is Six Sigma? by Peter Pande and Larry Holpp• What is Lean Six Sigma? by Mike George, Dave

Rowlands, & Bill Kastle• Lean Six Sigma for Service by Michael George• People Styles at Work by Robert Bolton and Dorothy

Grover Bolton• Memory Jogger Collection (Black Belt) by Goal QPC


Lean Six Sigma “Best Bets” in Lean Six Sigma “Best Bets” in The Small Business EnvironmentThe Small Business Environment


Michelle’s definition of a “Best Bet”

Does not require a LSS program

Does not require LSS certification

Applicable in various business environments

Has merit on individual basis


Corporate Environment• Pros:

• Knowledgeable in team work / sponsorship roles• Reservoir of resources• Comfortable with standard operating procedures• Established decision making protocol• Skills enhancement such as Lean ix Sigma training

• Cons:• Systems that are slow to change• Internal politics and bureaucracy• Risk and change averse• Decentralized structures discourage replication• Lack of passion?


The Small Business World

• Corporate to Small Business• Small Business to Small Business

– Landscaping / Lawn Care – Construction– Real Estate– Financial Services– Educational Services– Seasonal & Holiday-based Initiatives– Professional Services– Maintenance Support– Retail Sales– Catering and Restaurants


The Small Business World

• Pairing varying business paradigms– Planning Cycles – Process Maturity– Funding and Resource Availability– Business Communication and Administration– Formality and Complexity of Contracts and Service

Level Agreements– Ongoing versus Single Interactions

Example: Business unit working with small, family-owned catering business for ongoing events and functions


Small Business Environment

• Pros:• Natural inclination toward VOC• Flexibility and customization• Implementation speed• Willingness to learn and accept best practices

• Cons:• Ad hoc process implementation• Business administration less mature • Resource instability – capacity spikes• May need mentoring and training• Implementation speed


Best Bet Solutions

• Planning Cycles– Provide scope– Adjust to seasonal requirements and industry work

cycles rather than corporate quarters (90 days) or budgeting cycle

• Tax Season, Holiday Events, School vacations

– Get a written plan – move from ad hoc planning to process orientation

– Provide templates and examples for contracts and agreements


Best Bet Solutions

• Process Maturity– Focus is on quality aspect rather than lean

improvements– Development of custom solutions rather than

improvement of existing ones– Document key components of process– Provide sponsorship, mentoring, training– Establish metrics to review in future

evaluations


Best Bet Solutions

• Funding and Resource Availability– Minimize change requests– Provide longer lead times – fewer available

resources– Work with internal accounting practices to

accommodate cash flow needs– Establish Risk Mitigation plan, including

quality assurance


Best Bet Solutions

• Business Communications– State expectations explicitly in writing– Provide examples and templates (tools)– Define deliverables and time tables– Give more frequent feedback and create

checkpoints early in the delivery cycle– Seek involvement beyond primary contact


Community and Volunteer Community and Volunteer ActivitiesActivities


Community and Volunteer Involvement

• Corporate Outreach Programs– United Way, Meals on Wheels, Grants– Work sponsored volunteer time and funds

• Professional Associations• Neighborhood and Condo Associations• Boy Scouts / School Sports / PTA• Humane Society• Cultural or Church Affiliations• Environmental Efforts and Disaster Relief• Private functions

Example: Involvement on a Neighborhood Association Board of Directors


Community / Volunteer Environment

• Pros:• Ability to choose involvement and time commitment• Sense of purpose• Provides variety and diversification• Ability to influence standard of living other tangible

monetary drivers

• Cons:• Volunteer Dynamics• Lack of reliable resources• Yearly churn of participants • Lack of established and repetitive processes• Varying degrees of accountability & commitment


Best Bet Solutions

• Focus on Lean Aspects– Quality is hard to control– Minimal metrics or agreement to define or measure

quality– No clear VOC (voice of the customer)– Many volunteers and inputs– No clear decision making – Different levels of knowledge and capabilities– Varying levels of commitment


Best Bet Solutions

• Reduce time obligation for those involved– Differentiate between value-add and non-value-add

• Apply simplified versions of tools such as value stream mapping

• Simplify approval and decision process by involving small groups and inform the rest

• Reduce routing of information• Automate monthly tasks• Breakdown tasks to 1 person work packets• Work fast and furious for short durations• Schedule meetings longer to include working time


Best Bet Solutions

• Reduce complexity of tasks– Add efficiency and eliminate waste

• Establish simplified documented standard operating procedures (repetitive process)

• Use examples and templates from umbrella organizations and work experience (replication)

• Introduce role of meeting facilitator and other standard team meeting principles

• Provide guidelines for transition work (replication)• Introduce steps for involving SMEs for small, specialized

tasks • Reduce use of acronyms, technical terms (VOC)


Michelle Goodman, MBA, PMPMichelle Goodman, MBA, PMP

Senior Process ConsultantSenior Process Consultant

O 952-595-7970 O 952-595-7970 C 651-261-9422C 651-261-9422

[email protected] [email protected]

www.trissential.comwww.trissential.com

Conclusion

pmi-mn breakfast meeting tuesday, april 11 th , 2006

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