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Lean Six Sigma Leadership
This product was funded by a grant awarded under the President’s High Growth Job Training Initiative as implemented by the U.S. Department of Labor’s Employment & Training
Administration. The information contained in this product was created by a grantee organization and does not necessarily reflect the official position of the U.S. Department of Labor. All references to non-governmental companies or organizations, their services, products, or
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What is Six Sigma?•A “Layman’s” Definition
A popular management philosophy, based
upon facts and data used to make decisions
in the organization
•A Technical Definition
A level of perfection measured by 3.4 errors
per million opportunities
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A Lean Sigma OrganizationA Lean Sigma Organization
• Features programs and products are delivered in the right amounts, at the right time, to the right location, and in the right condition
• Programs and products are produced only for a specific customer rather than being added to inventory
• Allows production of a wide variety of programs and services, efficient and rapid changeover as needed, rapid response to fluctuating demand, and increased quality
• Fosters a company culture in which all employees continually improve their skill levels and eliminate variation in their production processes.
3
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What Is a Lean Sigma Leader?
A Lean Sigma Leader is that manager A Lean Sigma Leader is that manager who is responsible for who is responsible for creating an creating an environment environment and expectationand expectation wherewhere everyone everyone cancan unleash unleash theirtheir creativity creativity to their fullto their full potential. potential.
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The Call to ActionThe opportunity for Lean Sigma leadership exists at the
junction of several powerful forces:• Need for leaders to guide the transformation to the new
economy• Speed of changes in the pharmaceutical business
climate• Long term economic peril that organizations face• Increasing reliance upon intellectual capital• Movement of Generation X and Y into the workforce• The talent crunch in a booming economy• Personal motivation among current business leaders to
leave a legacy and make a difference in the world
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What Do Leaders Do?
• ChallengeChallenge accepted beliefs accepted beliefs • Find new ways to Find new ways to motivatemotivate and and communicatecommunicate• MeasureMeasure things differently things differently • Keep track of how many new Keep track of how many new improvement ideasimprovement ideas
your team and organization has generatedyour team and organization has generated• Keep score of the Keep score of the time on task time on task that your teams are that your teams are
spending on the project spending on the project
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What Are the Benefits of Lean Sigma? Increased Customer Satisfaction through improved Increased Customer Satisfaction through improved service outcomes service outcomes
Measurements, Monitoring, & Management are more Measurements, Monitoring, & Management are more accurate and timelyaccurate and timely
Employees learn new ways of thinking Employees learn new ways of thinking
Cost of ServiceCost of Service is lowered is lowered
Ability to serve consumers is improvedAbility to serve consumers is improved
Non-value added activitiesNon-value added activities are eliminated or reduced are eliminated or reduced
Internal processes and communications between Internal processes and communications between departments and groupsdepartments and groups are improved are improved
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Classical View of Performance Practical Meaning of “99%
Good”20,000 lost articles of
mail per hour15 minutes of unsafe
drinking water each day5,000 incorrect surgical
operations per week2 short or long landings
at most major airports each day
200,000 wrong drug prescriptions each year
No electricity for almost 7 hours each month
3 Sigma
4 Sigma
6 Sigma
93.32%
99.38%
99.99999%
HistoricalStandard
CurrentStandard
NewStandard
CapabilityLong-Term
YieldStandard
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Where Does Industry Stand?
1,000,000
100,000
10,000
1,000
100
10
1
2 3 4 5 6 71
IRS – Phone-In Tax Advice(140,000 PPM)
Restaurant Bills
RX WritingJournal Vouchers
Wire Transfers
Airline Baggage Handling
Best-in-ClassBest-in-ClassAverageOrganization
AverageOrganization
PPM
Sigma Scale of Measure
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How Lean Sigma WorksHow Lean Sigma Works
BRAINSTORM
REFINE, EVALUATE AND SELECT
Focus And Select Vital Few Causes Using Tools
Generate Ideas(“Raw Material” For Solutions)
Synthesize Ideas(Build Potential Solutions)
Pilot(Select Best Solution)
F I L T E R
ANALYZE
IMPROVE
Develop Solution“Proposal”
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Incremental and Exponential ImprovementIncremental and Exponential Improvement
Time
Imp
rove
me
nt
IncrementalImprovement
ExponentialImprovement
Incremental Improvement
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12
Lean Six Sigma Training Lifecycle: Lean Six Sigma Training Lifecycle: DMAICDMAIC Lean Six Sigma Training Lifecycle: Lean Six Sigma Training Lifecycle: DMAICDMAICDEFINE MEASURE ANALYZE IMPROVE CONTROL
Define Problem,
Team Charter, & Project Plan
Develop the SIPOC
Diagram
Develop the CTQs &
SIFOC
Create MeasurementScorecards
Implement Project Data
Collection Plans
AnalyzeTheData
AnalyzeThe
Process
AnalyzeThe RootCauses/Waste
GenerateSolutions
Select/Test
Hypothesis
DetermineLean
Control Points
ImplementThe Lean
Management Response
Plan
1
2
3
4 6 9 11
57
8
10 12
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Lean Sigma Toolbox• There are 20 tools in the Lean Sigma Toolbox:
10 Technical Tools and 10 Management Tools• The Technical Tools are used to work with data,
and the Management Tools are used to work with concepts and words
• Technical Tools have mathematics and statistics associated with them
• Management Tools center around acceptance of the team’s solutions and how it conducts its work
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Lean Sigma Technical Tools• Critical-to-Quality (CTQ) Tree• Process Maps• Histograms• Pareto Charts• Process Summary Worksheets• Cause-and-Effect Diagrams• Scatter Diagrams• Affinity Diagrams• Run Charts• Control Charts
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Effect
Failure Mode (Defect)
MeasurementPeopleMaterials
EnvironmentMachinesMethods
Toolbox: Example of FishboneToolbox: Example of Fishbone
Prevent or Detect
Cause-and-Effect DiagramCause-and-Effect Diagram
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Lean Sigma Management Tools• Poka Yoke and 5Ss• Project Charter• Quick-and-Easy Kaizens• Relationship Matrix• Process Failpoints Matrix• Workplace Organization• Workplace Standardization• Lean Management Scorecard• SCAMPER Solutions Chart• FMEA Analysis Charts
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Tool Box – Example of a FMEA FormTool Box – Example of a FMEA Form
Lists Failure Modes for
each Process Step
Lists the Effects of
each Failure Mode
List of Process Steps or
Product Parts
Rates the Severity of the Effect to the Customer
on a 1 to 10 Scale
Doing a Lean Sigma AnalysisDoing a Lean Sigma Analysis
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Rates how often a particular Cause or
Failure Mode Occurs:
1=Not Often
10=Very Often
Lists the Causes for each Failure
Mode: Each Cause is
associated with a process input
out-of-Spec
Documents how the Cause is
currently being controlled in the
process
Rates how well the Cause or the Failure
Mode can be detected.
1=Detect Every Time
10=Cannot Detect
FMEA Form-Assessing Current SituationFMEA Form-Assessing Current Situation
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Lean Sigma Leadership• World Class organizations have three major
focus areas: Customer Focus, Process Focus, and People Focus
• Management’s responsibility is to measure and improve these three areas
• Lean Sigma helps managers align customer requirements with processes through people
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Key Leadership Characteristics
Six characteristics for leaders success are: Six characteristics for leaders success are: Positivity, Focus, Flexibility, Organization, Positivity, Focus, Flexibility, Organization, Proactivity and ResiliencyProactivity and Resiliency
The more The more resilientresilient leaders are, the greater is leaders are, the greater is the potential speed of changethe potential speed of change
Resilient people: quickly regain their Resilient people: quickly regain their equilibriumequilibrium after disruptions while avoiding after disruptions while avoiding dysfunctional behaviors that impede success.dysfunctional behaviors that impede success.
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Management Competencies Needed
• In order to assess the learning and development needs of organizational leaders, the Lean Management Development Questionnaire (MDQ) model was created
• It is intended to provide competence information relevant to successful lean managerial performance
• MDQ measures 20 competence dimensions which are organized into five cluster area categories
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Management Competency Areas
Managing Change
Managing Change
Planning and Organizing
Planning and Organizing
Interpersonal Skills
Interpersonal Skills
Results Orientation
Results Orientation
LeadershipLeadership
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Managing Change Competencies
The four key competencies in Managing Change are:• Initiative = the ability to take action and originate an
activity or task• Risk Taking = determines how far managers are
prepared to prudently take risks to make things better• Innovation = is about a general concern for making
things better by generating ideas and putting them into practice
• Flexibility/Adaptability = a manager’s ability to
respond flexibly to different people and situations
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Complexity of Managing Change
• Change in any area creates ripple effects in Change in any area creates ripple effects in other areasother areas
• It’s like dropping a pebble in a bucket of waterIt’s like dropping a pebble in a bucket of water• Often the ripple effects cause unintended Often the ripple effects cause unintended
consequences that interfere with the change consequences that interfere with the change initiativeinitiative
• Change becomes a problem as simultaneous Change becomes a problem as simultaneous projects begin to increase and then interactprojects begin to increase and then interact
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Lean Sigma and Speed of Change
• Begins with the pace at which change is Begins with the pace at which change is happening in a rapidly changing worldhappening in a rapidly changing world
• It is also the speed at which an organization can It is also the speed at which an organization can rebound from the disruption caused by major rebound from the disruption caused by major projectsprojects
• When people are operating at optimum speed of When people are operating at optimum speed of change, they can absorb fast complex change change, they can absorb fast complex change with minimal loss of productivitywith minimal loss of productivity
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Planning and Organizing• The four competencies involved in Planning and
Organizing are: Analytical Thinking, Decision Making, Planning, and Quality Focus
• Lean Sigma has a heavy concentration on Analytical Thinking and Quality Focus and a medium impact upon Decision Making and Planning.
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Interpersonal Skills and Resilience• Four characteristics for interpersonal success Four characteristics for interpersonal success
are: Oral Communications, Sensitivity, are: Oral Communications, Sensitivity, Relationships, and TeamworkRelationships, and Teamwork
• The more resilient managers are, the greater is The more resilient managers are, the greater is the potential speed of changethe potential speed of change
• Resilient managers quickly regain their Resilient managers quickly regain their equilibrium after disruptions while avoiding equilibrium after disruptions while avoiding dysfunctional behaviors that impede successdysfunctional behaviors that impede success
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‘Results Orientation’ Competencies
The Four Key Building Blocks areThe Four Key Building Blocks are::• AchievementAchievement = governs a manager’s = governs a manager’s
motivation and career commitmentmotivation and career commitment• Customer FocusCustomer Focus = involves a manager’s = involves a manager’s
commitment to service conceptscommitment to service concepts• Business AwarenessBusiness Awareness = focuses on a = focuses on a
manager’s business literacymanager’s business literacy• Learning OrientationLearning Orientation = allows a manager to = allows a manager to
foster a commitment to self-improvement and foster a commitment to self-improvement and developmentdevelopment
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Lean Sigma at WorkStructure
Systems
Strategy
Processes
Skills
Leadership
Attitudes
Behavior
Values
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F U T U R E Trends to Consider Fast = speed is foremost, and value-information and better
early warning systems will be critical Urban = population growth, water shortage, crime and drug
addiction will be major threats Tribalism = will continue to be the basis of all family, team and
belonging; despite increased terrorism, there will be an increased respect for culture
Universal = global management may lead to job insecurity, erosion of non-wage benefits, and further weakening of trade unions
Radical = traditional political movements will shrivel and die, and organizations serving vital needs will grow
Ethics = our values will carry us through periods of tremendous change and will provide context and meaning
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Ten Conclusions for Managing the Future
Prepare for the unexpected Get ready for faster reaction times Develop flatter organization structures Build teams and alliance partners Grow with the Global Village Practice cultural sensitivity Invest heavily in technology Create a family work atmosphere Provide a Vision with purpose and meaning Enhance your leadership and management
competencies
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Basic Lean Sigma Building Blocks For Change
Pressurefor
Change
ClearSharedVision
Capacityfor
Change
ActionableFirstSteps+ + +
=SUCCESSFULCHANGE
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SummaryThe shortfall between promised The shortfall between promised
results and actual results is results and actual results is overcome by managing the overcome by managing the change properlychange properly