Lean

W H AT I S L E A N ?

SIMPLER. FASTER. BETTER. LESS COSTLY.

 WhatisLEAN?
Lean,leanenterprise,leanproduction,all
considertheexpenditureofresourcesforany
goalotherthanthecreationofvaluefortheend
customertobewasteful

Workingfromtheperspectiveofthecustomer,
valueisdefinedasanyactionorprocessthata
customerwouldbewillingtopayfor

WaronWaste
SIMPLER. FASTER. BETTER. LESS COSTLY.
 LEAN
Ford,inMyLifeandWork(1922),provideda
singleparagraphdescriptionthatencompasses
theentireconceptofwaste:

Ibelievethattheaveragefarmerputstoa
reallyusefulpurposeonlyabout5%.ofthe
energyheexpends....Notonlyiseverything
donebyhand,butseldomisathoughtgivento
alogicalarrangement.Afarmerdoinghischores
willwalkupanddownaricketyladderadozen
times.Hewillcarrywaterforyearsinsteadof
puttinginafewlengthsofpipe.Hiswholeidea,
whenthereisextraworktodo,istohireextra
men.Hethinksofputtingmoneyinto
improvementsasanexpense....Itiswaste
motion wasteeffort thatmakesfarmprices
highandprofitslow.

SIMPLER. FASTER. BETTER. LESS COSTLY.

 TheMicrosoftOfficePersonal
ProductivityChallenge
Responsesfrom>38,000peoplein200countries,
ratedworkers'individualproductivitybasedontheir
responsesto18statementsaboutworkrelated
practices

Peopleworkanaverageof45hoursaweek;they
considerabout17ofthosehourstobeunproductive
(US:16hoursareconsideredunproductive).

Peoplespend5.6hourseachweekinmeetings;69%
feelmeetingsaren'tproductive(US:5.5hours;71%
feelmeetingsaren'tproductive).

SIMPLER. FASTER. BETTER. LESS COSTLY.

 Productivity
Themostcommonproductivitypitfallsare
unclearobjectives
lackofteamcommunication
andineffectivemeetings chosenby32percent
ofrespondentsoverall followedbyunclear
prioritiesat31percentandprocrastinationat29
percent(U.S.:procrastination,42percent;lackof
teamcommunication,39percent;ineffective
meetings,34percent).

SIMPLER. FASTER. BETTER. LESS COSTLY.

 WarOnWaste
HenryFord $wastedon
woodinmanufacturing
ModelAcars
Turnwasteintoprofit?
Madecharcoalbriquettesto
selltosteelmills
Peoplestartedusingthe
briquettesforheatingand
cooking
Thecharcoalgrillinvented

SIMPLER. FASTER. BETTER. LESS COSTLY.

 LEANBasics
Byimprovinganoperatingsystem,the
configurationofassets,layout,material,and
staffassignmentaLEANapproachcancut
costsdramatically,typicallyby15to30
percent.

(costavoidance steps/handoffs/leadtime)

SIMPLER. FASTER. BETTER. LESS COSTLY.

 LEANBasics
CostsavingsareonlypartofLEANsappeal,as
demonstratedbytheexperienceofToyotaMotor,the
pioneerofthesetechniquesinthe1950sandtheonly
consistentlyprofitablevolumecarmanufacturer.

Leanaimstooptimizecosts,quality,andcustomerservice.
Itdoessobyengagingandequippingemployeestofocus
oncreatinganddeliveringvalueintheeyesofthecustomer
andeliminatingwhateverdoesn'tcontributetothisgoal.

Contrarytopopularbelief,leanisaboutmakingaprocess
oroperation"fightingfit,"notaboutcuttingittothebone.

SIMPLER. FASTER. BETTER. LESS COSTLY.

 LEANBasics
LEANGovernmentreferstotheapplicationofLEANproduction
principlesandmethodstoidentifyandimplementthemost
efficientandvalueaddedwaytoprovidegovernmentservices.
GovernmentagencieshavefoundthatLEANmethodsenablethem
tobetterunderstandhowtheirprocesseswork,toquicklyidentify
andimplementimprovements,andtobuildacultureof
continuousimprovement.

AkeycharacteristicofaLEANorganizationisitsabilitytoimprove
itselfconstantlybybringingproblemstothesurfaceandresolving
them.Hereaswellthepublicsectoroftenfindsitselfinaweaker
startingposition,withgapsinskillsandentrenchedmindsets.
(Changeisextremelydifficult)

SIMPLER. FASTER. BETTER. LESS COSTLY.

 Quotes
Ihadnoideathatwehadthatmanystepsinour
process.

Iwasskepticalinthebeginning,butbythe
secondday,Iwasstartingtorealizeweregetting
itdone!Itsamazing.Wediditinfourdays.

Wevebeentryingtofixthisfor20yearswe
diditinoneweek!

SIMPLER. FASTER. BETTER. LESS COSTLY.

 DontFearProblems

Problemsaregoldennuggetsthathelpus
improve!

unknown

SIMPLER. FASTER. BETTER. LESS COSTLY.

 SixSigma

I S I T R E A L LY B E T T E R T H A N F I V E S I G M A ?

SIMPLER. FASTER. BETTER. LESS COSTLY.

 WhatisSixSigma?
SixSigmaisabusinessmanagementstrategy
originallydevelopedbyMotorola,USAin1986

SixSigmaseekstoimprovethequalityofprocess
outputsbyidentifyingandremovingthecauses
ofdefects(errors)andminimizingvariabilityin
businessprocesses

Asixsigmaprocessisoneinwhich99.99966%of
theoutputsproducedarestatisticallyexpectedto
befreeofdefects(3.4defectspermillion)

SIMPLER. FASTER. BETTER. LESS COSTLY.

 Motorola
ThefirstproductMotorolastartedtodevelopwasarecord
playerforautomobiles.Atthetime,themostknownrecord
playeronthemarketwascalledthe'Victrola'...sotheycalled
themselvesMotorola!

1969:FirstWordsFromtheMoon
AMotorolaradiotransponderrelayedthe
firstwordsfromthemoontoEarthinJuly
1969.ThetransponderaboardtheApollo11
lunarmoduletransmittedtelemetry,
tracking,voicecommunicationsand
televisionsignalsbetweenEarthandthe
moon.

SIMPLER. FASTER. BETTER. LESS COSTLY.

 CommercialPortableCellphone
1983:World'sFirstCommercialPortable
CellularPhone
Theworld'sfirstcommercialhandheld
cellularphone,theMotorolaDynaTAC
phone,receivedapprovalfromtheU.S.
FederalCommunicationsCommissionon
September21,1983.The28ounce(794
gram)phonebecameavailableto
consumersin1984.

SIMPLER. FASTER. BETTER. LESS COSTLY.

 SixSigma
Theterm"sixsigmaprocess"comesfromthenotionthatifonehas
sixstandarddeviationsbetweentheprocessmeanandthenearest
specificationlimit,asshowninthegraph,practicallynoitemswill
failtomeetspecifications.
BellCurve UpperSpeclimit

SIMPLER. FASTER. BETTER. LESS COSTLY.

 SigmaLevels

Todays
organizations
fallhere

DPMO Defectspermillionopportunities
SIMPLER. FASTER. BETTER. LESS COSTLY.
 WhatDoesitMeantoHaveDefects?
Sigma5isreallyagoodprocess,itis99.97%
effective,however

SIMPLER. FASTER. BETTER. LESS COSTLY.

 Sigma5Example

Onefullhourofdangerousdrinking
waterfromyourtapeverymonth!
 Twocrashlandingsat
Sigma5Example
everyairportintheUS
everyday!
400lettersLOSTbythepostofficeeveryhour!
Sigma5Example
3000newbornbabiesdroppedtothe
floorbymedicalstaffeachyear!
4000misfilledprescriptionseachyear!
Sigma5Example
 Sigma5Example
22,000checksdeductedfromthewrongbank
accountEVERY HOUR!
 WhatisSixSigma?
FeaturesthatsetSixSigmaapartfrompreviousqualityimprovement
initiativesinclude:
Aclearfocusonachievingmeasurableandquantifiablefinancial
returnsfromanySixSigmaproject.
(ROI Costs,Time,Quality,Defects)

Anincreasedemphasisonstrongandpassionatemanagement
leadershipandsupport.

Aspecialinfrastructureof"Champions,""MasterBlackBelts,"
"BlackBelts,""GreenBelts",etc.toleadandimplementtheSix
Sigmaapproach.

Aclearcommitmenttomakingdecisionsonthebasisofverifiable
data,ratherthanassumptionsandguesswork.

SIMPLER. FASTER. BETTER. LESS COSTLY.

 DMAIC

G E N E R AT I N G P R O C E S S I M P R O V E M E N T

SIMPLER. FASTER. BETTER. LESS COSTLY.

 DMAIC
TheDMAICprojectmethodologyhasfivephases:

1. Define theproblem,thevoiceofthecustomer,
andtheprojectgoals,specifically.Whereare
wenow?

2. Measure keyaspectsofthecurrentprocessand
collectrelevantdata.Canwecountor
observe?
SIMPLER. FASTER. BETTER. LESS COSTLY.
 DMAIC
3. Analyze datatoinvestigateandverifycauseand
effectrelationships.Determinewhattherelationships
are,andattempttoensurethatallfactorshavebeen
considered.Seekoutrootcauseofthedefectunder
investigation.Letthedataspeak.

4. Improve oroptimizethecurrentprocessbasedupon
dataanalysisusingtechniquessuchasvaluestream
mapping,poka yokeormistakeproofing,and
standardworktocreateanew,futurestateprocess.
Setuppilotrunstoestablishprocesscapability.
Transformation

SIMPLER. FASTER. BETTER. LESS COSTLY.

 DMAIC
5. Control thefuturestateprocesstoensure
thatanydeviationsfromtargetarecorrected
beforetheyresultindefects.Implement
controlsystemssuchasplanningregisters
(MSProject),visualboards,electronic
dashboards,andcontinuouslymonitorthe
process.

Sustainability

SIMPLER. FASTER. BETTER. LESS COSTLY.