2008 Nov Lessons Learned Lean Six Sigma Balanced Scorecard

Lessons Learned: Lean Six Sigma and Balanced Scorecard November 2008 Hans Froehling, DBA/CMBB, Senior Consultant

Intent of this Presentation ,[object Object],[object Object],[object Object],[object Object],[object Object]

Lean Six Sigma and Value of Services

Service vs. Product ,[object Object],[object Object],[object Object],[object Object],[object Object],PRODUCT Tangible Inputs from customer segment are based on a design process Production not transparent Product can be fully inventoried

Key Expectations of Service ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Key Focus of Lean Six Sigma Deployment in Services ,[object Object],[object Object],[object Object],[object Object],[object Object]

Strategic Deployment of Lean Six Sigma x Service Aspect Lean Six Sigma for Value Creation Timeliness Effectiveness Responsiveness x Lean Aspect Quality Aspect

Key Drivers of Value Satisfaction in the Outreach Lab Industry Timely Report/Bill Accurate Report/ Bill Quick Problem Resolution Satisfaction With Value Loyalty Responsiveness Findings Based on Large-Scale Study in the Outreach Business Timeliness Effectiveness

Key Drivers of Value Satisfaction in the Hospital Lab Industry Findings based on voice of customer Interviews in 14 hospitals Report in Chart When Physician Sees Patient All Test Results in One Chart and Accurate Quick Access to Lab Effective Patient Care Satisfaction With Value Responsiveness Timeliness Effectiveness

Lean Six Sigma and Services/Organizational Size

Key Elements of Lean Six Sigma Deployment ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Key Factors Affecting the Deployment of Lean Six Sigma ,[object Object],[object Object],[object Object],Large Organization Small Organization Manufacturing Services ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Lean Six Sigma and Organization Size ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Lean Six Sigma and Organization Size (cont.) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Lean Six Sigma: Special Challenges for Services ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Lean Six Sigma: Special Challenges for Services (cont.) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Lean Six Sigma: Special Opportunities for Services in Mid-sized Organizations ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Using Balanced Scorecard and Theory of Constraints to Identify Strategically Lean Six Sigma Projects

Approaches to Project Selection: Overview (1) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Adapted from Snee & Hoerl (2003).

Approach to Project Selection: Overview (2) Strategic Plan (External/Internal Voice of Customer Financial Performance Process Performance Value Design/Redesign Projects Lean Projects Error Reduction (Quality) Projects

Balanced Scorecard and Lean Six Sigma: Making the Scorecard Operational Driver A Driver B Driver C Satisfaction Loyalty Key Drivers of Value Satisfaction and Loyalty Operational Scorecard for driver Lean Six Sigma project to eliminate waste for driver ,[object Object],[object Object],[object Object],[object Object],Operational Performance Learning and Growth Satisfaction Financial Results

Balanced Scorecard and Lean Six Sigma: Establish Operational Measurement ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Driver A Driver B Driver C Satisfaction Loyalty

Balanced Scorecard and Lean Six Sigma: Review Variance of Operational Measurement ,[object Object],[object Object],What we learned : 43% of calls are resolved on the first call (cost = $2.50), 33% require outbound call (cost = $7.50), 24% are solved on weekends at the end of the month requiring overtime (cost = $10).

Balanced Scorecard and Lean Six Sigma: Identify and Conduct Lean Six Sigma Project ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Start 1 st Level rep takes call Resolution? Resolve call Open ticket 2 nd level rep outbound calls Start

Balanced Scorecard and Lean Six Sigma: Make Change and Measure Impact ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Theory of Constraints and Lean Six Sigma: Identify the Right Projects ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Theory of Constraints and Lean Six Sigma: Example Bottleneck ,[object Object],[object Object],[object Object],Phlebotomist Drop Off Specimen in Lab Phlebotomist Draws Dispatch Phlebotomist Verified Results In LIS Match Order to Label Specimen Gets Analyzed Process Area Received Specimen Nurse Generates an Order in LIS OE to LIS Physician Orders Beginning Process End Process

Theory of Constraints and Lean Six Sigma: Example (cont.) What we learned : The duplicate orders are cancelled between midnight 4 PM. 3 FTEs are involved with investigating the duplicate orders at night. This creates inefficient allocation of resources and instability in the input  throughput  output process and unpredictable turnaround times.

Lessons Learned About Key Elements of a Successful Lean Six Sigma Deployment

Lessons Learned: Criteria for Project Selection ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Lessons Learned: Roles and Responsibilities ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Lessons Learned: Employee Involvement ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Lessons Learned: Curricula and Training Systems (1) ,[object Object],[object Object],[object Object],[object Object]

Lessons Learned: Curricula and Training Systems (2) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Current Trends (1) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Current Trends (2) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Current Trends (3) Functional Approach Marketing Strategy Operations Value-added Approach Value Marketing Strategy Operations Excellence

Follow-up ,[object Object],[object Object],[object Object],[object Object],[object Object]

2008 Nov Lessons Learned Lean Six Sigma Balanced Scorecard

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2008 Nov Lessons Learned Lean Six Sigma Balanced Scorecard