Lean Six Sigma

June 2024 Examination

1. As a consultant for business process outsourcing (BPO) company develop a comprehensive

framework utilizing the DMAIC methodology for process improvement by identifying any process
(at least 1) that needs improvement. Additionally, envisage yourself as the project leader of a Six
Sigma initiative and draft a set of guidelines for your team to adhere to, aimed at avoiding conflicts
effectively. (10 Marks)

Ans 1. Introduction

In the realm of business process outsourcing (BPO), where efficiency and quality are paramount, the
Lean Six Sigma methodology stands out as a beacon of systematic improvement. As consultants
tasked with enhancing processes within a BPO company, our focus lies on developing a
comprehensive framework utilizing the DMAIC (Define, Measure, Analyze, Improve, Control)
approach. The DMAIC methodology provides a structured pathway for identifying areas of
improvement, analyzing root causes, and implementing data-driven solutions. By leveraging Lean
principles and Six Sigma tools, we aim to streamline operations, minimize waste, and elevate overall
performance.

Concept & Application

DMAIC Methodology for Process Improvement in a Business Process Outsourcing (BPO) Company:

Define:

1. Identify Process for Improvement: Select a specific process within the BPO company that
needs improvement, such as the customer onboarding process, order fulfillment process, or quality
assurance process.

2. Define Project Goals: Clearly define the objectives and desired outcomes of the improvement
project, including key performance metrics to measure success.

3. Map Current Process: Use process mapping techniques such as flowcharts or value stream
mapping to document the current state of the process, including inputs, activities, outputs, and
stakeholders.

Measure:
1. Identify Key Metrics: Determine relevant process metrics to measure performance, such as
cycle time, error rate, customer satisfaction, or cost per transaction.

2. Data Collection Plan: Develop a plan to collect data on the selected metrics, including data
sources, measurement methods, and frequency of data collection.

3. Baseline Measurement: Collect baseline data to establish the current performance level of the
process and identify areas for improvement.

Analyze:

1. Root Cause Analysis: Use tools such as fishbone diagrams, Pareto analysis, or 5 Whys to
identify root causes of issues or inefficiencies in the process.

2. Data Analysis: Analyze collected data to identify patterns, trends, and correlations that may
provide insights into process bottlenecks or sources of variation.

3. Process Mapping: Review process maps and workflow diagrams to identify opportunities for
streamlining or optimizing process steps.

Improve:

1. Generate Solutions: Brainstorm potential solutions to address identified root causes and
improve process performance. Prioritize solutions based on feasibility, impact, and resource
requirements.

2. Pilot Testing: Implement pilot tests of selected improvement solutions to assess their
effectiveness and gather feedback from stakeholders.

3. Continuous Improvement: Continuously monitor and refine the improved process based on
feedback and performance data. Implement a culture of continuous improvement to encourage
ongoing innovation and optimization.

Control:

1. Implement Controls: Develop control measures and procedures to sustain improvements and
prevent regression to previous performance levels.
2. Monitor Performance: Establish monitoring mechanisms to track key process metrics and
performance indicators on an ongoing basis.

3. Documentation and Standardization: Document updated process procedures, standard

operating procedures (SOPs), and best practices to ensure consistency and facilitate knowledge
transfer among team members.

Guidelines for Six Sigma Initiative Team to Avoid Conflicts Effectively:

1. Establish Clear Communication Channels: Encourage open and transparent communication

among team members to facilitate collaboration and prevent misunderstandings.

2. Define Roles and Responsibilities: Clarify roles, responsibilities, and expectations for each
team member to minimize ambiguity and avoid conflicts over ownership of tasks or decisions.

3. Set Ground Rules for Meetings: Establish ground rules for meetings, including guidelines for
respectful communication, active listening, and constructive feedback.

4. Encourage Diversity of Perspectives: Embrace diversity of thought and encourage team

members to share their perspectives and insights, recognizing that different viewpoints can lead to
better solutions.

5. Address Issues Promptly: Promptly address any conflicts or disagreements that arise within
the team, seeking to understand root causes and find mutually acceptable resolutions.

6. Seek Mediation if Necessary: If conflicts escalate and cannot be resolved internally, seek
mediation from a neutral third party or HR representative to facilitate resolution.

7. Promote Team Cohesion: Foster a sense of camaraderie and teamwork among team members
through team-building activities, social events, and recognition of individual and team achievements.

8. Focus on Common Goals: Keep the team focused on common goals and objectives, reminding
members of the shared purpose of the Six Sigma initiative and the importance of working together
towards success.

9. Provide Training on Conflict Resolution: Offer training and resources on conflict resolution
techniques and interpersonal skills to help team members effectively manage conflicts and maintain
positive working relationships.
 10. Lead by Example: As the project leader, lead by example by demonstrating professionalism,
empathy, and integrity in all interactions with team members, setting a positive tone for
collaboration and conflict resolution.

Conclusion

In conclusion, through the rigorous application of the DMAIC methodology, we anticipate significant
enhancements in our Customer Onboarding Process at the BPO company. By systematically identifying root
causes, implementing targeted solutions, and establishing robust control measures, we aim to achieve a 20%
reduction in onboarding time, resulting in increased customer satisfaction and operational efficiency. This
project underscores our commitment to delivering top-notch service and underscores the value of a data-driven,
collaborative approach in process improvement endeavors. With the newly refined onboarding process, we are
poised to not only meet but exceed customer expectations, setting a solid foundation for sustained success in
the competitive BPO industry

2. Consider yourself as a Six Sigma project leader for a super specialty hospital. Develop a
comprehensive schedule outlining all activities from patient admission to bed occupancy.
Additionally, construct a process map delineating the patient admission procedure, commencing
from registration to bed allocation within the hospital. (10 Marks)

Ans 2.

Introduction

Creating a Six Sigma project schedule and process map for patient admission to a multi-specialty hospital
involves ensuring efficiency, accuracy, and patient satisfaction. Below is a general schedule and a simplified
process map for this process. Keep in mind that the actual process may vary depending on the hospital's
specific procedures and systems.

Concept & Application

Six Sigma Project Schedule for Patient Admission:

Phase 1: Define (Week 1-2)

1. Project Initiation: Form a project team, define objectives, and set goals.
2. Stakeholder Identification: Identify key stakeholders and their requirements.
3. Data Collection Plan: Determine what data will be collected to measure the process.

Phase 2: Measure (Week 3-4) 4. Current Process Mapping: Create a detailed process map for patient
admission.
5. Data Collection: Start collecting data on admission process times and accuracy.
6. Baseline Metrics: Calculate baseline process metrics (e.g., cycle time, error rate).
 Phase 3: Analyze (Week 5-6) 7. Data Analysis: Analyze collected data to identify bottlenecks and areas for
improvement.
8. Root Cause Analysis: Identify root causes of delays or errors in the admission process.

Phase 4: Improve (Week 7-9) 9. Process Redesign: Develop and implement process improvements.
10. Streamlining Procedures: Simplify paperwork, reduce redundancies, and optimize workflows.
11. Staff Training: Train staff on the new and improved admission process.

Phase 5: Control (Week 10-12) 12. Monitoring: Implement control measures to ensure the new process is
followed consistently.
13. Data Monitoring: Continue to collect data and monitor process metrics.
14. Corrective Action: Address any deviations from the improved process promptly.
15. Documentation: Update standard operating procedures (SOPs) and process documentation.

Phase 6: Sustain (Ongoing) 16. Continuous Improvement: Encourage a culture of continuous improvement in
the admission process.
17. Periodic Review: Conduct regular reviews to ensure the process remains efficient and effective.

Process Map for Patient Admission:

Here's a simplified process map for patient admission, from registration to bed occupancy:

1. Patient Arrives at Hospital :

o Patient arrives at the hospital's registration desk.

2. Registration and Documentation

o Patient provides personal and insurance information.
o Front desk staff verify patient's identity.
o Patient signs necessary consent forms.

3. Medical Screening
o Nurse or medical assistant conducts initial health screening.
o Determines the patient's vital signs and initial condition.

4. Room Assignment
o Bed availability is checked.
o The patient is assigned to a suitable room or ward.

5. Payment and Billing

o Financial counselor discusses payment options.
o Billing information is processed.

6. Medical Assessment
o A physician examines the patient and prescribes treatment.
o Diagnostic tests or imaging may be ordered.
7. Treatment and Care
o The patient receives medical treatment and care.
o Nursing staff provide support and medication.

8. Discharge Planning
o The care team discusses discharge plans with the patient and family.
o Post-discharge instructions and prescriptions are provided.

9. Bed Occupancy
o Patient occupies the assigned bed.

10. Documentation and Reporting

o All patient information and medical records are accurately documented.

This simplified process map outlines the key steps involved in the patient admission process. The Six Sigma
project would focus on optimizing each of these steps to reduce errors, delays, and improve overall efficiency,
aiming for a higher level of patient satisfaction.

The patient admission process step by step, starting from the point of registration until the patient occupies
a bed in a multi-specialty hospital:

Step 1: Patient Arrival

 When a patient arrives at the hospital, they typically enter through the main entrance or an emergency
department, depending on their condition.

Step 2: Registration and Documentation

 The patient approaches the hospital's registration desk or check-in area.
 At this point, the patient is asked to provide personal information such as their name, date of birth, contact
details, and insurance information.
 Front desk staff verify the patient's identity by cross-referencing the provided information with hospital
records.
 Necessary consent forms, including consent for treatment and billing, may be presented for the patient's
signature.

Step 3: Medical Screening

 After the registration process, the patient is directed to a medical screening area.
 A nurse or medical assistant conducts an initial health screening.
 Vital signs such as blood pressure, temperature, and heart rate are measured.
 A brief assessment of the patient's initial condition is performed to determine the urgency of care required.

Step 4: Room Assignment

 Bed availability is checked by hospital staff, often in real-time through a computerized system.
 Based on the patient's medical condition and the availability of suitable rooms or wards, the patient is
assigned to an appropriate location within the hospital.
 If a bed is not immediately available, the patient may wait in a designated area until one becomes available.

Step 5: Payment and Billing

 A financial counselor or billing specialist discusses payment options with the patient.
 Billing information, including insurance details and any co-pays or deductibles, is processed.
 This step ensures that the hospital can bill the patient and/or their insurance company accurately.

Step 6: Medical Assessment

 Once the patient is assigned to a room or ward, a physician or medical provider conducts a more thorough
medical assessment.
 The physician examines the patient, takes a medical history, and prescribes any necessary treatments or
medications.
 If needed, diagnostic tests or imaging may be ordered at this stage.

Step 7: Treatment and Care

 After the medical assessment, the patient receives medical treatment and care as prescribed by the physician.
 Nursing staff provides ongoing care, administers medications, and monitors the patient's condition.
 Specialized staff, such as therapists or specialists, may be involved as needed.

Step 8: Discharge Planning

 As the patient's condition improves, the care team initiates discharge planning.
 They discuss the patient's progress, review any remaining treatments or medications, and plan for the
patient's safe discharge.
 Post-discharge instructions, including follow-up appointments and prescriptions, are provided to the patient
and their family.

Step 9: Bed Occupancy

 Once the patient has received the necessary medical care and is deemed fit for occupancy, they are moved to
the assigned bed.
 The patient now occupies the bed in the appropriate room or ward.

Step 10: Documentation and Reporting

 Throughout the entire process, accurate and detailed documentation is maintained.
 All patient information, medical records, and billing records are documented to ensure proper record-keeping
and compliance with regulatory requirements.

This step-by-step breakdown provides a clear understanding of the patient admission process in a multi-
specialty hospital, from the initial registration and documentation to the patient occupying a bed for
treatment and care. The Six Sigma project would aim to optimize each of these steps to enhance efficiency,
accuracy, and patient satisfaction while reducing errors and delays.

The patient admission process in a multi-specialty hospital:

1. Patient Arrival: The patient arrives at the hospital.
2. Registration and Documentation: The patient provides personal and insurance information at the registration
desk, and their identity is verified. Consent forms may be signed.
3. Medical Screening: A nurse or medical assistant checks vital signs and assesses the patient's initial condition.
4. Room Assignment: Hospital staff check bed availability and assign the patient to an appropriate room or ward.
5. Payment and Billing: Payment details, including insurance, are discussed and processed.
6. Medical Assessment: A physician conducts a detailed assessment and prescribes treatment or tests.
7. Treatment and Care: The patient receives medical care and nursing support.
8. Discharge Planning: The care team plans for the patient's discharge, provides instructions, and schedules
follow-up appointments.
9. Bed Occupancy: The patient occupies the assigned bed.
10. Documentation and Reporting: Accurate records are maintained throughout the process.
The Six Sigma project aims to optimize each step for efficiency, accuracy, and patient satisfaction while
reducing errors and delays.

3. Suppose you are employed at an organization that offers advanced software solutions and web-
based business tools to other companies.

a.Select a specific process within your organization and deconstruct it into smaller tasks to pinpoint
Non-Value Added (NVA), Business Value Added (BVA), and Value Added (VA) activities. (5 Marks)

Ans 3a.

Introduction

In a dynamic organization specializing in computer software and web-based business tools, it’s crucial
to boost the effectiveness of the approaches. One such significant manner is software program
improvement, which involves sports progression. L ean is a principle of production manufacturing by
reducing process time and eliminating all wastes for adding more value added into the whole process. The most
effective way to reduce costs while keeping up with the competition is to become "Lean" by reducing or
eliminating waste. Womack and Jones define waste as any activity that does not add value to the product as
defined by the customer. In Lean perspective, every activity is categorized as either a Value Added (VA) or Non-
Value Added (NVA) activity. However, it should be noted that even some perceived NVA activities which may be
necessary to comply with certain requirements. Such activities are termed as Essential Non-Value Added (ENVA)
activities.

Concept & Application

Process breakdown into NVA, BVA, and VA activities:

The process of developing and delivering a custom software solution as an example. We'll break
down this process into smaller activities and identify Non-Value Added (NVA), Business Value Added
(BVA), and Value Added (VA) activities.

Process: Custom Software Development and Delivery

1. Requirement Gathering:

• VA: Understanding unique client needs and preferences.

• BVA: Documenting detailed requirements for development.

• NVA: Excessive meetings or documentation beyond what's necessary.

2. Design Phase:

• VA: Creating a system architecture that aligns with client requirements.

• BVA: Prototyping and getting client feedback.

• NVA: Overly detailed design documents with little impact on the final product.

3. Coding:

• VA: Writing code to implement the software features.

• BVA: Conducting code reviews to ensure quality.

• NVA: Duplicate code, unnecessary complexity, or over-engineering.

4. Testing:

• VA: Conducting functional and performance testing.

• BVA: Implementing automated testing for efficiency.

• NVA: Repeating tests that don't add significant value or have low impact.

5. Client Review:

• VA: Incorporating client feedback into the software.

• BVA: Conducting meetings to ensure client satisfaction.

• NVA: Delayed client feedback or excessive back-and-forth without progress.

6. Deployment:

• VA: Ensuring a smooth transition from development to production.

• BVA: Providing user training for new features.

• NVA: Delays in deployment due to avoidable issues.

7. Maintenance and Support:

• VA: Resolving critical issues and bugs.

• BVA: Proactive monitoring and preventive maintenance.

• NVA: Dealing with repetitive or easily preventable issues.

8. Documentation:

• VA: Creating user manuals and technical documentation.

• BVA: Regularly updating documentation to reflect changes.

• NVA: Excessive documentation that is rarely referenced.

Conclusion

By breaking down the software development process into these activities, you can identify which
tasks add direct value to the customer (VA), contribute to the business but might not be customer-
facing (BVA), and those that do not directly contribute to the end product or customer satisfaction
(NVA). This analysis can help in streamlining processes, reducing waste, and improving overall
efficiency.

b.If you are positioned as the project leader of a Six Sigma initiative centred around the identified
process from part a then enumerate responsibilities associated with Six Sigma belts, including
Master Black Belt (MBB), Black Belt (BB), Green Belt (GB), Yellow Belt (YB), and White Belt (WB). (5
Marks)

Ans 3b.

Introduction:

In a Six Sigma venture aimed at optimizing a software improvement process, it’s imperative to
delineate the obligations of various Six Sigma belts. Those jobs, including master Black Belt (MBB),
Black Belt (BB), green Belt (GB), Yellow Belt (YB), and White Belt (WB), are instrumental in using
technique development and first-class enhancement.

Concept & Application

Responsibilities under different Six Sigma belts:

- Master Black Belt (MBB): Master Black Belts, identified by champions, act as in-house coaches on Six
Sigma.
- Provides leadership and strategic guidance for Six Sigma projects.
- Mentors and coaches Black Belts and Green Belts.
- Ensures alignment of Six Sigma projects with organizational goals.
- Provides expertise in statistical analysis and problem-solving.

- Black Belt (BB): Black Belts operate under Master Black Belts to apply Six Sigma methodology to specific
projects.
- Leads Six Sigma projects, including project selection, planning, and execution.
- Performs statistical analysis to identify root causes and process improvements.
- Manages project teams.
- Implements solutions and monitors project progress.
- Reports project results to senior management.

- Green Belt (GB): Green Belts are the employees who take up Six Sigma implementation along with their
other job responsibilities, operating under the guidance of Black Belts.
Green belts tend to be part-time professionals who assist on black belt projects and lead smaller projects.
- Assists Black Belts in Six Sigma projects.
- Leads smaller process improvement initiatives.
- Collects and analyzes data.
- Implements solutions under Black Belt guidance.
- Contributes to project documentation and progress reports.

- Yellow Belt (YB): The Yellow Belt normally play roles as team member in Black Belt or Green Belt’s projects.
Sometimes, they can lead the small improvement projects within their areas (e.g. 5 S, Visual Control) and it is
not expected in their KPI
- Participates in Six Sigma projects as team members.
- Supports data collection and analysis.
- Helps in problem-solving activities.
- May lead smaller process improvement efforts.

- White Belt (WB):

- Has basic awareness of Six Sigma principles and terminology.
- Participates in introductory Six Sigma training.
- May provide input and feedback during process improvement discussions.
- Typically, not directly involved in Six Sigma project leadership or execution.

MBBs provide strategic guidance, BBs lead projects, GBs assist, YBs participate, and WBs have basic
awareness in Six Sigma projects.

a) Customer Onboarding Process Breakdown:

NVA activities include paperwork duplication and waiting. BVA activities encompass customization and client
meetings. VA activities include software development and process improvement.

b) Six Sigma Belt Responsibilities:

MBBs provide strategic guidance, BBs lead projects, GBs assist, YBs participate, and WBs have basic
awareness in Six Sigma projects.

Conclusion

It's important to note that these roles can vary between organizations, and the level of expertise associated
with each belt may differ. The key is to ensure that individuals in each role have the necessary training and
skills to fulfill their responsibilities and contribute to the success of Six Sigma projects.