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Lean, Six Sigma and ToC DMAIC Process Improvement Improve Phase Optimise -GB
Knowledge base Lean:  is centred around creating more value with less work by removing waste and increasing efficiencies in business processes. Six Sigma:  seeks to improve the quality of process outputs by identifying and removing the causes of defects (errors) to achieve cost reduction or profit increase and customer satisfaction Optimise -GB
Knowledge base Theory of Constraints (TOC ) is an overall management philosophy introduced by Dr. Eliyahu M. Goldratt and is geared to help organisations achieve their objectives. Any manageable system is limited by a small number of constraints.  Optimise -GB
Six Sigma Process Improvement methodology Optimise -GB
[object Object],[object Object],[object Object],[object Object],[object Object],Before we continue ask yourself the  following questions: Optimise -GB
Six Sigma  Improve To address the process inefficiencies of risks, defects and waste.  Identify and evaluate mitigating solutions. Develop project implementation plan People never improve unless they look to some standard or example higher and better then themselves  –  Tryon Edwards Optimise -GB D M A I C
5 S Six Sigma  Sort out the work area.... Optimise -GB D M A I C
5 S Six Sigma  Sort out the work area.... - Review equipment, files, stationery, storage, posters, shelves - Red tag items not used often  (Keep spare tags at the ready) - Remove red tag when item is used - Remove items that have red tags still in place after 3 months - Have things next to you, where you need it - Label cupboards (use easy to read writing, colour) - Use shadow boards to show where specific items go - Throw out rubbish  Optimise -GB D M A I C
5 S Six Sigma  Sort out the work area.... - Arrange items for easy access, everything has a place - Place items so that you do not have to search for them Optimise -GB D M A I C
5 S Six Sigma  Sort out the work area.... - Daily checks done - Clean surfaces down each day - Clean desk policy - All equipment checked for suitability, efficiency and effectiveness Optimise -GB D M A I C
5 S Six Sigma  Sort out the work area.... - Do jobs in the same way where possible by all users - Keep and adhere to all rules - Speed of access to systems and equipment remains high Optimise -GB D M A I C
5 S Six Sigma  Sort out the work area.... - Keep high standards - Use suggestion box, management meetings to improve system further - Track measures via photos, checklists, visual workplace - Focus on the customer - Remove 7 wastes Optimise -GB D M A I C
5 S Six Sigma  Sort out the work area.... Optimise -GB D M A I C
Generating solutions:  Good practice ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Six Sigma  Optimise- GB D M A I C
Improve  - Select one process issue at a time   ...then Identify the solutions Solution 1 Use post it notes and put the solutions on a blank wall Solution 2 Solution 3 Solution 4 Solution 5 Solution 6 Solution 7 Solution 8 Solution 9 Solution  10 Solution 11 Solution 12 Solution 13 Solution 14 Solution 15 Solution  16 Solution 17 Solution 18 Six Sigma  Optimise- GB D M A I C
Improve  - Select one process issue at a time   ...Group the solutions to identify duplications Group the post it notes in an affinity diagram to identify  common themes Six Sigma  Theme 3 Solution 12 Solution 18 Theme 2 Theme 1 Optimise- GB Solution 1 Solution 2 Solution 3 Solution 4 Solution 5 Solution 7 Solution 8 Solution 9 Solution  10 Solution 11 Solution 13 Solution 14 Solution 15 Solution  16 Solution 17 D M A I C
Improve  - Select one process issue at a time   ... Generate additional ideas Six Sigma  Optimise- GB D M A I C
Improve  – Agree weighting for objectives to evaluate solutions Six Sigma  Count the objectives on the matrix to determine the weighting Optimise- GB D M A I C
Improve  - Evaluate solutions against the objectives & criteria Identify solutions that must pass a certain requirement. If the solution does not meet this requirement then it will not be selected even though it may have a high weighted score, which must be 5 for high importance, 2 for nice to have.  If the solution meets the criteria then give the solution the  weighted score or 1 if it does not meet the requirement.  Multiply  the scores to identify the best solution Six Sigma  Optimise- GB Solutions Must Have Objective 2 Weighting 5 Objective 2 Weighting 2 Objective 2 Weighting 2 Solution 1 Pass 5 1 2 10 Solution 2 Fail N/A N/A N/A N/A Solution 3 Pass 1 2 2 4 D M A I C
Improve  – Evaluate solution Six Sigma  Optimise- GB D M A I C Easy to  Implement Big Impact Hard to  implement Small Impact Solution 1 Solution 3 Solution 6 Solution 7 Solution 8 Solution 9 Solution 2 Implement Now Possible Kill Implement Later
Improve  – Evaluate solution De Bono’s 6 thinking hats Six Sigma  Optimise- GB D M A I C
Improve  – Evaluate solution De Bono’s 6 thinking hats Six Sigma  Optimise- GB D M A I C
Current state process map Six Sigma  Optimise -GB D M A I C Customer Operations Finance Order goods Take goods from shelf Produce and print invoice Box goods and invoice
Future state process map Six Sigma  Solution: Operations produce invoice and pack goods Benefit: No waiting time, reduces headcount from Finance Solution: Customers place orders through internet (discounts as incentives) Benefit: Orders are no longer hand written thus mistakes reduced Optimise -GB D M A I C Customer Operations Order goods on internet Take goods from shelf Produce and print invoice Box goods and invoice
Six Sigma  Improve  - Now formulate a project plan to identify what activities are required to deliver the solutions. Agree millstones for review Optimise -GB D M A I C Project Plan What Who When How
[object Object],[object Object],[object Object],[object Object],[object Object],Optimise- GB

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Process improvement using lean - six sigma - service industry - improve phase

  • 1. Lean, Six Sigma and ToC DMAIC Process Improvement Improve Phase Optimise -GB
  • 2. Knowledge base Lean: is centred around creating more value with less work by removing waste and increasing efficiencies in business processes. Six Sigma: seeks to improve the quality of process outputs by identifying and removing the causes of defects (errors) to achieve cost reduction or profit increase and customer satisfaction Optimise -GB
  • 3. Knowledge base Theory of Constraints (TOC ) is an overall management philosophy introduced by Dr. Eliyahu M. Goldratt and is geared to help organisations achieve their objectives. Any manageable system is limited by a small number of constraints. Optimise -GB
  • 4. Six Sigma Process Improvement methodology Optimise -GB
  • 5.
  • 6. Six Sigma Improve To address the process inefficiencies of risks, defects and waste. Identify and evaluate mitigating solutions. Develop project implementation plan People never improve unless they look to some standard or example higher and better then themselves – Tryon Edwards Optimise -GB D M A I C
  • 7. 5 S Six Sigma Sort out the work area.... Optimise -GB D M A I C
  • 8. 5 S Six Sigma Sort out the work area.... - Review equipment, files, stationery, storage, posters, shelves - Red tag items not used often (Keep spare tags at the ready) - Remove red tag when item is used - Remove items that have red tags still in place after 3 months - Have things next to you, where you need it - Label cupboards (use easy to read writing, colour) - Use shadow boards to show where specific items go - Throw out rubbish Optimise -GB D M A I C
  • 9. 5 S Six Sigma Sort out the work area.... - Arrange items for easy access, everything has a place - Place items so that you do not have to search for them Optimise -GB D M A I C
  • 10. 5 S Six Sigma Sort out the work area.... - Daily checks done - Clean surfaces down each day - Clean desk policy - All equipment checked for suitability, efficiency and effectiveness Optimise -GB D M A I C
  • 11. 5 S Six Sigma Sort out the work area.... - Do jobs in the same way where possible by all users - Keep and adhere to all rules - Speed of access to systems and equipment remains high Optimise -GB D M A I C
  • 12. 5 S Six Sigma Sort out the work area.... - Keep high standards - Use suggestion box, management meetings to improve system further - Track measures via photos, checklists, visual workplace - Focus on the customer - Remove 7 wastes Optimise -GB D M A I C
  • 13. 5 S Six Sigma Sort out the work area.... Optimise -GB D M A I C
  • 14.
  • 15. Improve - Select one process issue at a time ...then Identify the solutions Solution 1 Use post it notes and put the solutions on a blank wall Solution 2 Solution 3 Solution 4 Solution 5 Solution 6 Solution 7 Solution 8 Solution 9 Solution 10 Solution 11 Solution 12 Solution 13 Solution 14 Solution 15 Solution 16 Solution 17 Solution 18 Six Sigma Optimise- GB D M A I C
  • 16. Improve - Select one process issue at a time ...Group the solutions to identify duplications Group the post it notes in an affinity diagram to identify common themes Six Sigma Theme 3 Solution 12 Solution 18 Theme 2 Theme 1 Optimise- GB Solution 1 Solution 2 Solution 3 Solution 4 Solution 5 Solution 7 Solution 8 Solution 9 Solution 10 Solution 11 Solution 13 Solution 14 Solution 15 Solution 16 Solution 17 D M A I C
  • 17. Improve - Select one process issue at a time ... Generate additional ideas Six Sigma Optimise- GB D M A I C
  • 18. Improve – Agree weighting for objectives to evaluate solutions Six Sigma Count the objectives on the matrix to determine the weighting Optimise- GB D M A I C
  • 19. Improve - Evaluate solutions against the objectives & criteria Identify solutions that must pass a certain requirement. If the solution does not meet this requirement then it will not be selected even though it may have a high weighted score, which must be 5 for high importance, 2 for nice to have. If the solution meets the criteria then give the solution the weighted score or 1 if it does not meet the requirement. Multiply the scores to identify the best solution Six Sigma Optimise- GB Solutions Must Have Objective 2 Weighting 5 Objective 2 Weighting 2 Objective 2 Weighting 2 Solution 1 Pass 5 1 2 10 Solution 2 Fail N/A N/A N/A N/A Solution 3 Pass 1 2 2 4 D M A I C
  • 20. Improve – Evaluate solution Six Sigma Optimise- GB D M A I C Easy to Implement Big Impact Hard to implement Small Impact Solution 1 Solution 3 Solution 6 Solution 7 Solution 8 Solution 9 Solution 2 Implement Now Possible Kill Implement Later
  • 21. Improve – Evaluate solution De Bono’s 6 thinking hats Six Sigma Optimise- GB D M A I C
  • 22. Improve – Evaluate solution De Bono’s 6 thinking hats Six Sigma Optimise- GB D M A I C
  • 23. Current state process map Six Sigma Optimise -GB D M A I C Customer Operations Finance Order goods Take goods from shelf Produce and print invoice Box goods and invoice
  • 24. Future state process map Six Sigma Solution: Operations produce invoice and pack goods Benefit: No waiting time, reduces headcount from Finance Solution: Customers place orders through internet (discounts as incentives) Benefit: Orders are no longer hand written thus mistakes reduced Optimise -GB D M A I C Customer Operations Order goods on internet Take goods from shelf Produce and print invoice Box goods and invoice
  • 25. Six Sigma Improve - Now formulate a project plan to identify what activities are required to deliver the solutions. Agree millstones for review Optimise -GB D M A I C Project Plan What Who When How
  • 26.