lean six-sigman-for-service

Gajanan Shirke, www.gajananshirke.com

Services have 30-80% waste Activities that have no value to the customer

Service activities are not used to collecting and using data about their processes

Focus on how the customer perceives value instead of how we are arranged internally

Shift resources to where their impact is maximized


Lean focuses on speed of execution Velocity of a process is proportional to its flexibility

Maximize process velocity Speed acceleration tools

Optimize work flow Rapid action Kaizen teams

Eliminate delays Quantify and eliminate complexity

The complexity of the service generally adds more nonvalue added costs than both poor quality or slow speed process problems

Eliminate non value added steps 80% delays caused by 20% of the process steps


WIP backlog Slow processes are expensive processes Chasing information Decision loops Interruptions Expediting necessary Work lost in cracks No visibility of overall process


Backlog ties up resources Lead time= Work in Process/average completion

rate To increase efficiency, limit the amount of work you

allow into the process This works for materials, but not for face time with

the customer Pull system is good control mechanism

Cap at maximum WIP, create buffer, triage work coming out of the buffer as a pull


Process efficiency = value-add time/ total lead time It qualifies how much opportunity exists Track work items through system and create a time

value map Does that part of the process add value recognized by the

customer?

Work to eliminate non value added sections Less required waste for accounting, legal, or regulatory

requirements


Six sigma focuses on accuracy Recognize opportunities and eliminate defects

based on customer’s value Eliminate variation Use statistical tools Seek documented, repeatable processes

Infrastructure to support continued progress Identification of customer critical to quality needs


Management must be engaged Allocate resources to high priority projects Train everyone Eliminate variation

Drives narrower bell curves 99.9997% +/- 6 standard deviation from the mean


Use a value stream analysis to diagram the process flow Find time traps

Get agreement on areas of waste. Establish ownership and create priorities. Display priorities Track and display daily performance Manage expectations

Communicate Provide feedback


Customer

Post Solicitation on FBO

Address Inquires

Receive Questions

Post Q&As

OBuyer

OBuyer

Amend Solicitation

Respond to Protests

OBuyer

Receive ProtestValidate protest

Amend if required

Review questions

Draft Notice

Chart6

Upload tech drawings

Refresh bidlibrary

Develop answers

Post notice

Determine need for amendment

Issue CO determination

PCO OBuyer

Solicit Offers

Issue Solicitation

Determine need for amendment


Customer critical to quality “must haves” are the highest priority for improvement Next are ROIC and Net present value


Price paid is a reflection of value to the customer How well do your services meet the customer’s

needs What customer needs are you not meeting What offerings have no value to customers How do you compare to your competition What are world-class levels of performance


Align your priorities to your customer’s Transform customer needs into functional requirements

and then into design requirements Quality Function Deployment Segment market, research market, analyze data Repeat to refine understanding of customer needs

Define, measure, analyze, improve, control


Contribute at such a high level of service that our work promotes and fosters to continued advancement of the organization’s mission


Understand value from the customer’s prospective Understand where product and service value are

created in the organization (value stream) Optimize for flow to get to optimal performance Focus on cycle time and pull

Shrink process time to the minimum to speed response to customer changing needs

Achieve Six Sigma quality at lean speed


Convince folks to devote time to LSS Understand need for changes in layout Sometimes lean changes required are

counterintuitive to services Reduce WIP

Translate LSS into lingo understood within workplace

Build an awareness of what waste looks like


Give business units the credit Tailor models to fit Use a pace that fits organizational readiness Don’t force it on people– generate pull Solve problems cross functionally Speed creates more noticeable improvements and

quicker results Data gathering and analysis takes time


Burning Platforms are your biggest competitive or strategic challenges Here you will create shareholder (taxpayer) value Represents your competitive advantage Compare against world class Do a value stream and compare value creation vs

value destruction Measure growth potential also

Compare investment required vs EV of payoff


Shut down processes that destroy value, are unprofitable in the market, where competitors are advantaged

Invest to improve position of processes where you are competitively advantaged, even though you are currently destroying value and not getting a profit Should be close to breakeven re economic profit


If you are value neutral, at economic breakeven, yet competitively disadvantaged, weigh the costs of removing waste to the potential EV of being more responsive to the customer

If you are competitively advantaged and creating value, just monitor to maintain market. Not as critical to invest Better opportunities in other value streams


The task adds a function or feature that the customer will pay for

The task provides you a competitive advantage (reduced price, faster delivery, better quality)

The customer prefers what we will produce over our competitors


Gotta do these even though the customer will not pay for it

Required by law or regulation Reduces financial risk Financial reporting requirements Critical to process stability


Rework, expediting. Multiple signatures, counting, handling, inspecting, setup, downtime, transporting, moving, delaying, storing

Create congestion, variation, complexity Does not consume existing capacity while

producing higher revenue


Look for time traps Look for build up in WIP Consider what are the cost drivers/ failure modes Evaluate cost to remove impediment vs expected

value of improvement Pareto chart is a good tool for comparing

contributions of process corrections toward error rates


Use these tools to Define: Value stream map, non value added analysis Measure: Process cycle efficiency, process sizing Analyze: Constraint identification, Time trap analysis,

Queuing theory Improve: Kaizen, Process flow improvement Control: Visual control process


Sort Straighten Shine Standardize Sustain Plus one Safety CLEAN UP YOUR DESK


lean six-sigman-for-service

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