Fundamentals of Lean Six Sigma (C11FS)

Lecture 4

Professor Jiju Antony (BE, MSc, PhD, FIOM, FRSS, FCQI, FASQ, FISSP)
Professor of Quality Management
Director of Process Improvement
Certified Lean Six Sigma Master Black Belt
Editor, International Journal of Lean Six Sigma
Associate Editor, TQM and Business Excellence
Associate Editor, Quality in Education (ASQ)
Esmee Fairbairn Building (EF25)
School of Management and Languages
Heriot Watt University, Edinburgh, Scotland, UK
E-mail: J.Antony@hw.ac.uk
 8 Forms of Waste in Lean Thinking - Exercise

Exercise objective :To identify waste that occurs in a Higher

Education Sector. Write an example of each type of muda below:

 Overproduction
 Defects
 Inventory
 Motion
 Over-processing or Extra-Processing
 Transportation
 Waiting
 Non-utilization of skills
Failure Demand in Services
Failure Demand:
The demand caused by a failure to do something or
not do something right for the customer
 Some Facts about Lean and Six Sigma failures…..

• About 5 to 8% of companies are successful with a Lean transformation

(Bryrne, 2013)
• Some recent studies report that failure rates for Lean programs range
between 70 percent and 95 percent (ASQ, 2014; Ferraro, 2013)
•Nearly 60 percent of all corporate Six Sigma initiatives fail to yield the desired
results (Gupta, 2008)
•About 70% of CI initiatives in organisations have failed to demonstrate
financial benefits (Clements, 2009)
•According to McKinsey, 70% of Transformation Efforts fail !!!!!!
Basic Tools of Lean

Why Lean initiatives in organizations fail?

(Syndicate Exercise)
Basic Tools of Lean

Basic Tools of Lean for Process Improvement

SIPOC

Supplier-Input-Process-Output-Customer
(SIPOC Analysis)
SIPOC

• SIPOC is a high level management tool that simplifies the variables of

any given process into five segments. SIPOC is the acronym of these

five segments:

 S for suppliers,
 I for inputs,

 P for process,

 O for output and

 C for customers
SIPOC

Suppliers provide inputs to the process.

Inputs define the material or information that are used by the process to

produce the outputs.

Process is a defined sequence of activities, usually adds value to inputs to

produce outputs for the customers.

Outputs are the products, services, and/or information that are valuable to the
customers.

Customers are the users of the outputs produced by the process.

SIPOC

• A SIPOC diagram maps a process at a high level and identifies potential

gaps between suppliers and inputs specifications and between outputs

specifications and customers expectations, thus defining the scope for

process improvement activities

• SIPOC is best accomplished in team work and brainstorming sessions.
During sessions, team members will determine all the variables that are
relevant to a given process
 SIPOC

Steps to Complete the SIPOC Diagram

SIPOC diagrams are very easy to complete. Here are the steps you should
follow:
1. Begin with the process. Map it in 5 to 8 high level steps.
2. Identify the outputs of this process.
3. Identify the customers that will receive the outputs of this process
4. Identify the inputs required for the process to function properly.
5.Identify the suppliers of the inputs that are required by the process.
6. Discuss with Project Sponsor, Champion and other involved stakeholders for
verification.
SIPOC – An Illustrative example
 SIPOC Exercise
Develop a SIPOC model for an international conference you are

organising at HW University on Innovation and

Entrepreneurship. Explain the process at a very high level

(maximum 8 steps) and add other components of the SIPOC.

The conference is primarily aimed to attract both industry

professionals as well as key academics and researchers.

Lean Thinking – An Overview

Thank you !!!

Any Questions??