artikel 1 process control

Practical Process Management asconditional

A beehive or an ant hill are communities that behave like a single intelligent organism.

hen executing

Belts will perform projects and start implementing their solutions

into the organization. We encountered problems in the implementation

process. Although formally the new methods and tools were acc

results started to slip after several months. Analysis demonstrated lack of

management follow up, but also that the responsible managers were not

aware of their lack of

continuous cost reduction and per

priorities for short term results in daily work.

necessary condition for the application of Lean, Six Sigma or any other

improvement programma

those who recognize the

n the article we will propose a simplified version of process

management, based upon the European Foundation of Quality

Management (EFQM)

in a “process belt” training for

deploying not only

The model gives a structure in which

eventually the Lean Six Sigma projects

are accommodated.

lose less time in the control and

handover phase of projects, and full

capacity is available for real projects.

he problem can be

figure below. S

made to the implemented processes

after introduction, sometimes even

caused by the organization itself (new

software, transfer to Vista, legal

requirements). The performance

W

I

T

1© Dutch Six Sigma B.V. 2010

Practical Process Management asconditional step to Lean or Six Sigma

Ir. Leo Monhemius


An organization of humans is a community that …..

executing a Lean Six Sigma programma, a group of dedicated



Although formally the new methods and tools were acc



aware of their lack of performance. The pressure on the organization,

continuous cost reduction and permanent fear of layoffs, will result in

priorities for short term results in daily work. We found that maybe a


programma was not yet met? This article is written for

ho recognize these symptoms.


, based upon the European Foundation of Quality

(EFQM), which is similar to the Baldrige Award

in a “process belt” training for all direct managers. The effect was

deploying not only process control, but also continuous improvement.

The model gives a structure in which

eventually the Lean Six Sigma projects

are accommodated. Thus the belts will

lose less time in the control and

ndover phase of projects, and full

capacity is available for real projects.

problem can be illustrated in the

figure below. Small changes were

made to the implemented processes

after introduction, sometimes even

caused by the organization itself (new

software, transfer to Vista, legal

requirements). The performance

Dutch Six Sigma B.V. 2010

aor Six Sigma ?

Leo Monhemius October 2010


An organization of humans is a community that …..

, a group of dedicated



Although formally the new methods and tools were accepted,



The pressure on the organization,

manent fear of layoffs, will result in

We found that maybe a


This article is written for


, based upon the European Foundation of Quality

, which is similar to the Baldrige Award. It resulted

The effect was

process control, but also continuous improvement.


reduced from the initial achievements (phase 0). But the most concerning

element was, that local managers were not aware. Although they understood

conceptually the need of control (phase 1) and even the need of continuous

improvement (phase 2), each of the managers stated that the actual workload

did not allow time for these “theoretical” needs. Some of them remembered

the old days when they had still time for reflection and TQM efforts. I once met

a manager who stated: “I prefer to kick the ball very high than putting my

energy in conserving the ball at a too low level”.

Since each of the managers was responsible for many processes, they would

only intervene when a major problem occurred. Slow decay of performance

can thus remain unnoticed for a long time because it can be caused by many

successive small changes. Furthermore individual managers indicated that it

was impossible to make the culture change alone; some had earlier work

experience with other companies and fully understood both the problem as

the proposed solution. We approached the problem with a minimized version

of the European EFQM model (or the American Baldrige model). Starting from

the detail level of activity rather than top-down (which is the Lean element).As an example we will use the issuing of permits to work in a petrochemical plant. At

a permit desk anybody who intends to work on the plant has to receive clearance.

Permit desk operators are the interface between operation and maintenance. Since

safety is vital, time pressure is undesirable for the permit process. On the other hand,

waiting time is a classical waste and should be avoided. Also the process will surface

any other problem in the work preparation; it signals the waste in many other

activities as well. This makes it a good first project; In other areas similar processes

exist:

Monitoring sick leave may signal many other problems, not only medical but

also private or conflicts at work.

Help desk questions may signal unclear forms, unclear website text and many

other topics.

Punished children at school removed from the classroom and send to the

headmaster may reveal problems of the teacher, of the social structures in

the class, or maybe private problems of the pupil.

In general such processes are a good start because they reveal the most obvious

waste in the organization. Also the employees giving the signal are not authorized to

remove the root cause.

asic process execution is essential for any process. The classical SOP

(Standard Operating Procedure) may seem obvious; in many cases the

text is not guiding the work process, but derived from the work process

instead. Each ISO audit will thus be a challenge because details may differ in

reality.At the permit desk, experienced operators find a practical way to run their processes.

Since each plant has different specific conditions, the interpretations of the formal

process description develop differently in the course of time. For instance opening

hours, permit by phone, validity over the weekend, getting the permit while somebody

B

else gets the personal safety gear, … all practical interpretations around the formal

procedure.

The manager does not get alarmed

informal way; there are no complaints and no sudden problems

who typically work at more than one plant, will complain about local rules? But in the

end they will appoint dedicated foremen to each of the plants, thus avoiding problems

with the customer. The increased overhead will increase the price for the customer.

A Lean Six Sigma Project, aimed at reducing waiting times and at increasing Hand

on Tools time, implemented improvements in December. The implementation met

serious resistance at s

challenge; the Lean and Green Belt

implementation with good reason! After major improvements, the waiting times

started to return to old levels after

improvements. In response, the process was redesigned using a simple model:

employees get used to a high level of individual freedom. Also the daily

team will act aut

achieve higher “span of control

absolutely needed. The lean approach is totally different at the lowest

level of work. Although creativity and continuous improvement a

strongly encouraged, the details of work methods are not free for

individual interpretation. Best practices are enforced upon all

employees.

2. The data collection

time for the permit desk)

incidents where the ideal process was obstructed.

together with the reason

detected during waste walks, but during the process by the direct

employees. A major ba

We do not like to write down mistakes of colleagues.A contractor was in the

paperwork and had to travel back to the office. The permit operator knows

this guy and is

Overcoming this barrier will require a new attitude of the management, and

confidence in this new attitude by the permit desk operator at the same time.



The manager does not get alarmed when the small changes are introduced in an

there are no complaints and no sudden problems. Maybe contractors,



The increased overhead will increase the price for the customer.

A Lean Six Sigma Project, aimed at reducing waiting times and at increasing Hand

time, implemented improvements in December. The implementation met

serious resistance at some of the plants, but this was considered part of the

Lean and Green Belt training course put strong emphasis on


started to return to old levels after three months, in spite of the implemented

In response, the process was redesigned using a simple model:

The basics of process management

are reintroduced into the working

procedures:

1. The process itself should be

uniform. Temporary workers in

holiday time should keep the rules of

the daily team, and between plants

(this is the difficult one) the

differences should be minimized.

will not be an easy step, since


team will act autonomously, in fact we encouraged this in order to

achieve higher “span of control”. The manager should only intervene if


level of work. Although creativity and continuous improvement a



The data collection should not be the traditional data collection

time for the permit desk) but instead it should contain a log of all

incidents where the ideal process was obstructed. (obvious lost time

together with the reason). This way the seven wastes are not only


A major barrier is the open communication of problems.

We do not like to write down mistakes of colleagues.A contractor was in the waiting queue for 30 minutes, but forgot his


aware that writing the log will cause questions asked, …





small changes are introduced in an

. Maybe contractors,



The increased overhead will increase the price for the customer.

A Lean Six Sigma Project, aimed at reducing waiting times and at increasing Hands

time, implemented improvements in December. The implementation met

ome of the plants, but this was considered part of the

course put strong emphasis on


, in spite of the implemented

In response, the process was redesigned using a simple model:

The basics of process management

are reintroduced into the working

The process itself should be

uniform. Temporary workers in

ime should keep the rules of

the daily team, and between plants

(this is the difficult one) the

differences should be minimized. This

will not be an easy step, since


onomously, in fact we encouraged this in order to

”. The manager should only intervene if


level of work. Although creativity and continuous improvement are



data collection (waiting

d it should contain a log of all

obvious lost time,

This way the seven wastes are not only


rrier is the open communication of problems.

for 30 minutes, but forgot his


aware that writing the log will cause questions asked, …



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He must be convinced that addressing the imp

result in negative review of colleague involved.

A sufficient level manager must take responsibility

order to give sufficient support and credibility.

2 the key word is

specific interpretations will block any future improvement; it does in fact

make the process uncontrollable. Therefore a strong managerial effort

to obtain uniformity

3. Collecting information will

improvement.

direct feedback, thus the response should be on a similar timescale as

the work process. For a daily process,

to collect and summar

seem more efficient, but soon the logbook entries will show

and come to a hold after a while.

4. Closing the loop makes the whole system work. It is not necessary to

act on all the signaled waste, s

top-3 problems will be enough to make continuous improvement. An

ignored cause will show up in the logbook again and acted upon when

at a later time it gains the top

reducing activity. Unless the workers recognize the impact of the

corrective actions, they will stop “betraying their friends” of the shop

floor. Obsessive

the loop actually work. After a few months we may e

meeting to become more efficient (from 1 hour to 15 minutes?) but it is

essential to keep up the short frequency.

seemingly less important than other topics.

this is the so called Hawthor

can raise employee performance up to 50%, without even taking the

actual improvement into account)I will explain the importance of the loop with an unusual example:

to drive a bicycle, at first efforts are

course. After some time t

straight line and the handlebar does not move

not to need the feedback loop anymore? What would

steering mechanism

meetings of a control loop.

We have now closed the loop of continuous improvement, brin

organization to phase 2

The role of the appointed

general manager has a key role. Just by walking into the area and

asking for the process (instead of asking for the content)

support. A practical tool at this point is writing your initials in the

P


He must be convinced that addressing the improvement opportunity will not

result in negative review of colleague involved.

level manager must take responsibility over

order to give sufficient support and credibility. For process blocks

2 the key word is uniformity. The acceptance of individual or plant



uniformity is vital.

information will never be sustainable unless it is used for

improvement. The improvement must be felt by the employee as a


the work process. For a daily process, a weekly meeting can be used

to collect and summarize the logbook entries. Biweekly or monthly may

seem more efficient, but soon the logbook entries will show

and come to a hold after a while.

Closing the loop makes the whole system work. It is not necessary to

act on all the signaled waste, symbolically we state that acting upon the

3 problems will be enough to make continuous improvement. An


at a later time it gains the top-3 status. The action is in fact the waste

ng activity. Unless the workers recognize the impact of the


Obsessive pursuing of the top-3 actions is therefore key to make

the loop actually work. After a few months we may expect the weekly


essential to keep up the short frequency. Even if the actions are

seemingly less important than other topics. (The mechanism behind

this is the so called Hawthorne effect, sincere action upon problems


improvement into account)I will explain the importance of the loop with an unusual example:

to drive a bicycle, at first efforts are high and the bicycle will follow a hesitant

course. After some time the driving will be internalized and the bike will follow a

and the handlebar does not move. This is the moment that we seem

not to need the feedback loop anymore? What would happen if we

steering mechanism? Which is equivalent to cancelling the weekly feedback

meetings of a control loop.

We have now closed the loop of continuous improvement, brin

organization to phase 2.

The role of the appointed process manager is important, but also the

manager has a key role. Just by walking into the area and

asking for the process (instead of asking for the content) he

support. A practical tool at this point is writing your initials in the


rovement opportunity will not

over the process, in

process blocks 1 and

. The acceptance of individual or plant



ustainable unless it is used for

The improvement must be felt by the employee as a


a weekly meeting can be used

Biweekly or monthly may

seem more efficient, but soon the logbook entries will show resignation

Closing the loop makes the whole system work. It is not necessary to

ymbolically we state that acting upon the

3 problems will be enough to make continuous improvement. An


The action is in fact the waste

ng activity. Unless the workers recognize the impact of the


3 actions is therefore key to make

xpect the weekly


Even if the actions are

(The mechanism behind

ect, sincere action upon problems


I will explain the importance of the loop with an unusual example: when learning

high and the bicycle will follow a hesitant

the bike will follow a

. This is the moment that we seem

happen if we fasten the

? Which is equivalent to cancelling the weekly feedback

We have now closed the loop of continuous improvement, bringing the

manager is important, but also the

manager has a key role. Just by walking into the area and

he will give vital

support. A practical tool at this point is writing your initials in the logbook

margin each visit. This will also stimulate your lower managers, whilst at

the same time visualize your presence to next shifts or to employees not

present at the time of your visit. Notice the role is primarily setting the

standards: uniformity of

change of managerial behavior will be easier

for organizations with a “bottom up” style.

A second practical example is the use of

tracing paper in a standard minutes format.

This can prevent awkward writing of mi

by a “volunteer”. After the meeting minutes are

directly available in sufficient copies (originally

seen in 1988, Tom Bassett 3

plant). A great benefit is the possibility to make

drawings. The fixed format makes it easier to

obtain uniformity, simply by adding fields to

the format and by using the same

Once the system is running, managers can

start asking questions

was the last waste you saw this week, how

was it entered into your logbook? Did it make

this week’s top3 ? Are there problems that you

cannot address this way? How can I help you?”

nding old habits is very difficult indeed. When after some time a

serious problem occurs, or when a manager observes a deficiency in

the process, the manager

have a serious conversation.

So stop direct intervention and start process intervention:

E


visit. This will also stimulate your lower managers, whilst at



standards: uniformity of work and obsessive feedback of waste. The

change of managerial behavior will be easier

for organizations with a “bottom up” style.

A second practical example is the use of

tracing paper in a standard minutes format.

This can prevent awkward writing of minutes

by a “volunteer”. After the meeting minutes are

directly available in sufficient copies (originally

seen in 1988, Tom Bassett 3rd Philips Orem

). A great benefit is the possibility to make

drawings. The fixed format makes it easier to

formity, simply by adding fields to

the format and by using the same block notes.

Once the system is running, managers can

start asking questions on the process. “What

was the last waste you saw this week, how

was it entered into your logbook? Did it make

this week’s top3 ? Are there problems that you

cannot address this way? How can I help you?”

old habits is very difficult indeed. When after some time a


manager will be tempted to fall back into his

management style. This style is of course

not wrong in itself, it is even the only

professional response in the preceding

phase of maturity of the organization.

direct intervention may seem to satisfy the

urgency of the moment. But it will in a

single blow destroy the confidence in the

feedback loop. After the observation the

manager should first ensure that his

observation is entered into the logbook.

Directly after that he should get in touch

with the process responsible manager and

have a serious conversation.

So stop direct intervention and start process intervention:


visit. This will also stimulate your lower managers, whilst at



work and obsessive feedback of waste. The

old habits is very difficult indeed. When after some time a


to fall back into his former

This style is of course

not wrong in itself, it is even the only

professional response in the preceding

phase of maturity of the organization. A

direct intervention may seem to satisfy the

ency of the moment. But it will in a

single blow destroy the confidence in the

feedback loop. After the observation the

manager should first ensure that his

observation is entered into the logbook.

Directly after that he should get in touch

s responsible manager and

Many improvement issues can

best be handled project by

project, carefully expanding

success. But changing the

management style can benefit

from a short wave of workshop

introducing these concepts in a

relatively short time.

This way, managers can help

each other, and employees will

recognize the efforts as part of a

campaign.

At this point a Lean Six Sigma

program will overcome the tipping

an isolated group of extreme behaving individuals is tolerated.

quarter the Lean Six Sigma Belts come with change proposals

complain about management support. But once the broad layer of first line

management gets involved, the organization will see a boost of small

improvements. Also the real tough problem

weekly top 3 repeatedly. Now the need for a next level of control becomes

manifest.A contractor’s project leader took part i

were asked to collect information on time blockers during the day. The project

was not that easy because employees saw their smoking

stake. When the project leader visited a particular plant,

coffee. He asked for the data sheet and concluded it was not filled in properly. He

got angry in the full canteen

urge to put the group back to work. This group did no longer enjoy th

undeserved break and went back to work, the loyalty with the foreman and the

model behavior of the project leader had won.

the foreman for a longer time and explained his priorities.

he next level of process con

organizations with a “top down” style. It is inevitable when each

process is existing in different plants or locations in parallel. But also for

single processes a second level of control is required

different timescales between daily work and long term

Conceptually the loop is similar, but the structure is different since this

second loop is not driven by the daily process, but by the improvements

actions of the first loop.

T


Many improvement issues can

best be handled project by

project, carefully expanding

success. But changing the

management style can benefit

from a short wave of workshops,

introducing these concepts in a

relatively short time.

his way, managers can help

, and employees will

recognize the efforts as part of a

At this point a Lean Six Sigma

program will overcome the tipping point and become a movement. At first

isolated group of extreme behaving individuals is tolerated.

quarter the Lean Six Sigma Belts come with change proposals


gets involved, the organization will see a boost of small

improvements. Also the real tough problems will start to show up in the

top 3 repeatedly. Now the need for a next level of control becomes

A contractor’s project leader took part in a site improvement project. His foremen


was not that easy because employees saw their smoking- and coffee breaks at

stake. When the project leader visited a particular plant, he found the group at


in the full canteen about the lack of data collection and resisted the

urge to put the group back to work. This group did no longer enjoy th

ved break and went back to work, the loyalty with the foreman and the

model behavior of the project leader had won. In a 1:1 the project leader talked to

the foreman for a longer time and explained his priorities.

he next level of process control will develop more easily for



single processes a second level of control is required, because of the

ent timescales between daily work and long term performance.


not driven by the daily process, but by the improvements

actions of the first loop.


point and become a movement. At first

isolated group of extreme behaving individuals is tolerated. Each

quarter the Lean Six Sigma Belts come with change proposals and


gets involved, the organization will see a boost of small

to show up in the

top 3 repeatedly. Now the need for a next level of control becomes

n a site improvement project. His foremen


and coffee breaks at

he found the group at


about the lack of data collection and resisted the

urge to put the group back to work. This group did no longer enjoy their

ved break and went back to work, the loyalty with the foreman and the

In a 1:1 the project leader talked to

trol will develop more easily for



because of the

performance.


not driven by the daily process, but by the improvements

5. Structural problems

to show, especially when

few parallel, identical

processes exist. Now we can

help the local managers by

taking the generic problems

and making these visible,

together with their

performance impact. Block 5

can be performed by one of

the local managers as an

extra task, or

coupled to a site coordinator

of the specific area

6. This is the type of information

the higher manager loves to

see! Similar to

also at this level the lack of

underlying problem.

delay. In many cases a management decision can solve a major

problem; and in some cases it is too complex…

7. These are the projects that we educated Bla

for. No more arguing with the management about the problem

definition or the charter. And no more arguing with the employees

about the acceptance. Belts can at last work

initiated as a documented, repeatedly occ

major issues. Arguing and discussion

end (handover) will be reduced. This way waste in both time and

energy of belts is reduced, and impact increased.

We now closed the second level loop, which i

breakthroughs at the situations where continuous improvement gets

saturated. (phase 4 maturity begins to develop.)From a series of permit desks a generic problem was reported. Each day time

was lost, due to collecting protective equi

why this was not done the afternoon before. The

this because it meant a second day rent for the material. Once reported to the

higher management, this problem was solved with a management

15.00 hours collected materials are free of charge. This single decision saved a

substantial amount of time and increased Hands on Tool time. But the decision

was only made possible

time before. In fact only

become visible. The first feedback loop not only generates continuous

improvement, it also eliminates noise from the organization, thus enabling real

problems to be solved.


Structural problems will start

to show, especially when a

few parallel, identical

processes exist. Now we can

help the local managers by

ng the generic problems

these visible,

together with their

performance impact. Block 5

can be performed by one of

managers as an

maybe it is

coupled to a site coordinator

specific area.

This is the type of information

the higher manager loves to

see! Similar to “problem combined with cause” entries

also at this level the lack of performance comes accompanied by the

underlying problem. Now the manager can take the actions without any

n many cases a management decision can solve a major

problem; and in some cases it is too complex…

These are the projects that we educated Black, Green or Lean belts



about the acceptance. Belts can at last work on projects that are

initiated as a documented, repeatedly occurring problems or on real

major issues. Arguing and discussion at the start (charter) and at the


energy of belts is reduced, and impact increased.

We now closed the second level loop, which is the loop that seeks


(phase 4 maturity begins to develop.)From a series of permit desks a generic problem was reported. Each day time

due to collecting protective equipment. The local managers wondered

why this was not done the afternoon before. The site renting system was blocking


higher management, this problem was solved with a management



possible because of the elimination of other small causes in the

me before. In fact only after eliminating daily annoyances, the advantages

he first feedback loop not only generates continuous


problems to be solved.


in the logbook,

performance comes accompanied by the

e the actions without any

n many cases a management decision can solve a major

ck, Green or Lean belts



on projects that are

urring problems or on real

at the start (charter) and at the


s the loop that seeks


From a series of permit desks a generic problem was reported. Each day time

pment. The local managers wondered

renting system was blocking


higher management, this problem was solved with a management decision: after



because of the elimination of other small causes in the

after eliminating daily annoyances, the advantages

he first feedback loop not only generates continuous



ith the second loop closed, the management has time to think again.

A symptom of the situation might be the possibility to devote half

days maybe even full days to structural problems. Now at last we get the

time we need to connect strategy with daily work. The structure of the

former two loops becomes clearer now. The first loop reduces obvious

waste, but at the same time reduces the noise in daily communications.

The second loop reduces work done on not-bottleneck problems because

it will prevent projects are chosen that after a while no longer prove

relevant. The waste at this level (although not so easy to see with the 7

wastes, TIMWOOD) is substantial. The second loop will enable that not

only the Belts (which were the trigger of this article) but also other staff will

work only on relevant problems.

practical way to use the model is to analyze processes along the

blocks of the model.

We have been using 4 hours

workshops to train the

managers. During the

workshop we sent the

participants to their

workstation and experienced

that some 30 to 45 minutes

are sufficient to assess the

status of the process loops.

Notice that this can be

confronting, processes that

are run in an informal way

with experienced employees may suddenly show out of control diagnosis.

This is not alarming but can for instance signal a situation in which new

employees cannot perform like the old

ones did, causing a potential

performance risk.

The first diagnosis of the workshop

(see flipchart) can be followed by

individual projects that are aimed at

implementing full loops of process

control. An overview of the managers

involved (see matrix) gives a

summary of the progress per

manager. Connecting the lower level

loops (1, 2, 3, 4) to the higher level

loops (5, 6, 7) requires connection

between the management levels, and

W

A

typically also top down

management now gets connected

to the bottom up approach from

the primary processes. Many

organizations will at this stage be

able to integrate earlier efforts with

process management into new

efforts to introduce Lean Six

Sigma.

inally the last loop can be investigated. In fact this loop should be the

connection to strategy, vision and for organizations within large

corporations, the connection to the board and to global strategy. The last

block is:

8. The feedback loop

vision.

Again, top-down oriented companies will be quick in connecting to this

final building block. On the other hand operationally focused companies

may find a challenge.

pilogue. This article is a

simplified effort to

present a structure for

process management. All

elements are deliberately

oversimplified, in order to

achieve a model that is

primarily a communication

tool, covering the verti

extremes of an

organization. From the daily

work level where a permit

operator feels both safety

pressure as productio

pressure, causing

frustration. Trough

level of operational

management, where people

are driven by problems and

their outlook agenda’s.

Finally to the strat

where the leadership team

F

E


typically also top down

management now gets connected

to the bottom up approach from

the primary processes. Many

organizations will at this stage be

able to integrate earlier efforts with

process management into new

ts to introduce Lean Six




feedback loop that verifies actual performance with the long term

down oriented companies will be quick in connecting to this


may find a challenge.

ilogue. This article is a

simplified effort to

present a structure for

process management. All

deliberately

oversimplified, in order to

achieve a model that is

primarily a communication

the vertical

rom the daily

work level where a permit

operator feels both safety

pressure as production

pressure, causing

frustration. Trough the mid

level of operational

where people

are driven by problems and

their outlook agenda’s.

Finally to the strategy level,

where the leadership team





that verifies actual performance with the long term

down oriented companies will be quick in connecting to this



can hardly find time to develop a strategy and transform it into operational

targets.

It was written from the experience that many Lean and Six Sigma

deployments are started from optimistic assumptions on the actual

maturity of the organization. It was triggered by the observation that many

of the projects suffered similar problems. This way the article in itself is

triggered by a feedback loop as should exist in any performance

improvement program. Additionally to reducing this bottleneck, the

proposed approach helped to generate wider support and overcoming the

tipping point of the improvement program.

ummary. This article gives a simplified model but at the same time

drives development of the maturity of the organization. This

development has to go in parallel with the economic results. The results

cannot be achieved without the development. But on the other hand the

next phase of maturity is only needed when the economic improvements

of the previous phase are saturated.

Phase 1, the model blocks 1 and 2, defines the first phase of maturity. It

comes with a direct management style and instructional processes.

Identifying and registration of logbook information is the first step towards

the second phase.

Phase 2, the feedback loop with model blocks 3 and 4, gives the control

and continuous improvement level. It can be recognized by a reduction of

organizational noise after some time (less email, less misunderstandings),

but when starting the loop it can be confronting to see the high number of

operational inefficiencies. In this phase we need many relatively small

Lean Six Sigma projects. The closed loop will make the structural

problems visible, which is the input for the next phase.

Phase 3, the system loop with model blocks 5, 6 and 7, makes the

connection to breakthrough thinking and thus to major improvements. The

phase is recognized by another type of management. The firefighting

disappeared with phase 1; in phase 2 the noise disappeared giving time

for the basic work. Now in phase 3 we will see that especially the higher

management can afford larger blocks of time to specific higher level

problems. In this phase the larger Lean Six Sigma projects will develop,

typically optimizing between departments or between organizations. At last

the fully trained Black belts can use their skills.

Phase 4, block 8. Once this level of maturity is reached, a natural

connection between strategy and operations is achieved. At this level

projects can be chosen that no longer only reduce cost or solve problems.

Projects that increase customer value and create breakthroughs in a

creative way will be possible.

S

A frozen pizza can be cooked in two distinct ways: the programmed way and the feedback

way.

You can follow the instruction

pizza, and take it out after the time on the instructions.

The pizza must be perfect now,

unexpected events.

Or you can turn the oven on as soon as you enter the house, cycle to the nearest

supermarket and buy a pizza. When home again, the pizza is a little defrosted, and the oven

almost heated, you put it into the oven immediately. Check the color 2 minutes before the

indicated time. Craftsmanship

The second approach is



You can follow the instructions precisely, preheating the oven and then enter the deep

pizza, and take it out after the time on the instructions.

The pizza must be perfect now, craftsmanship is overruled. And the meth


ermarket and buy a pizza. When home again, the pizza is a little defrosted, and the oven


Craftsmanship is encouraged and can deal with surprises.

the philosophy of Dutch Six Sigma in Lean Six S



s precisely, preheating the oven and then enter the deep-frozen

hod is not robust for


ermarket and buy a pizza. When home again, the pizza is a little defrosted, and the oven


.

Sigma programs.


EFQM, Business Excellence Model,as background reading for “practical process management”.

Leo Monhemius Dutch Six Sigma BV October 2010 (translated and summarized from Dutch language1998)

Brief History of Quality Awards :

In 1950 the Deming Prize was founded in Japan, its purpose being theencouragement of Quality Management introduced by the gurus fromUSA. As a part of restructuring Japan after WWII (Marshall program),General Mc Arthur invited the same consultants to Japan, thatsupported American industry during the war. Quality statistics were amilitary secret at that time. In after war USA, everybody tried to forget assoon as possible anything reminding the war, including TQM.

In 1980 The Baldrige Award was founded in United States. Japaneseindustry at that time is competing Western industry in major areas(Automotive, Consumer electronics, Photography). The Baldrige Awardmust stimulate business excellence and thus regain the lost territory.

1985 EFQM Award; founded by major business leaders in Europe. It ismeant to boost in its turn European industry. Both Baldrige and EFQMaward were further developed and gained acceptance in all areas ofactivity, including service, public health and education.

1988, Dutch version of EFQM founded, as is the case for most otherEuropean countries. After a few years even within the Netherlandsregional award versions are developed, which happens in othercountries as well. The phasing described in this text is typical for theDutch self assessment in the pioneering days, but it is directly related tothe scores of the EFQM model.

Phase 1 : Product Orientation (score 200)

The writer of this article is interviewing a CEO on his vision about theEFQM business excellence model. The CEO gives a convincing speech,telling the reporter about his fanatics in quality. He does, in fact, notneed the model because he scores high in Leadership. All employeesknow he is always ready to take the lead in quality for the customer. Thetelephone rings … A customer complaining about a late order, to whichthe CEO had committed himself earlier. The CEO stops the interview atonce, but invites the reporter to witness his response. Full of pride theCEO shows how his employees produce a rush order. Accompaniedwith a bottle of wine he delivers to the customer in his own Mercedes …


The CEO scores phase 1 inleadership, thus limiting furtherimprovement of the wholeorganization to this level.

The illustrations are meant tosymbolize how every employeecan only cooperate when hisown skills are not a limitationanymore; if they rise above thefence, the next phase can bepursued. In phase oneemployees are limited to theirindividual skills.

Phase 2 : Process Orientation (score 400)

The reporter meets again with the CEO, a few years later. Theorganization developed strongly in the meantime. The CEO took severalcourses. When he suffered health problems, he had to step back a little,and he had to change his style of management. Supported by externalconsultants he initiated several change projects. No longer trying to doeverything himself. Much time was invested in training of employees,but special efforts were in changing the management style at all levels.Processes started to run smoother and the frequency of errors anddefects was reduced strongly over a period of one and a half year. Withhindsight it was easy to realize how much money was lost byfirefighting. It proved to be approximately 20% of the turnover. Astatistic that no one would have believed beforehand. Profits increasedin spite of price-erosion. It was also only afterwards that managementrecognized how much the efforts used to be focused upon firefighting.Nowadays the organization is more quiet and management has time leftfor structural improvements. The telephone rings ... The same customer

is on the phone. "Everything issatisfactory, this time, however,something went wrong indelivery". The CEO finishes theinterview, and again invites thereporter to join him in solving theproblem. When arriving at shopfloor, the cause of the problem isfound within 15 minutes. In ashort meeting of 45 minutesactions are agreed andrecurrence of the problem isprevented. A minor change in a


computer program and in an operating procedure are required. Theproduction manager will implement the changes, and of course start arush order for the customer. The CEO phones the customer to informhim. The CEO acts at level two for leadership.

The fences per employee are no limitation anymore. At all levels teamsof employees work together and compensate for each others limitations.Although the teams achieved strong cohesion, other departments arefelt as adversaries sometimes .The next challenge is cooperation. Againhigher fence, this time around the teams.

Phase 3 : System Orientation (score 600)

The reporter and the CEO meet again at the yearly EFQM conference. Ithas been two years since the previous contact. After the conferencethey have dinner and the CEO tells about developments in the company.

The company expanded rapidly since the last contact. Growth wasinitiated by a few large orders of new customers. These orders requireda fast offer for a new product. This imposed close cooperation betweendepartments. In early days this seemed impossible, but now it proved achallenge. When receiving the order, the customer explained that noneof the competitors made a proposal al all within the timeframe. Once theproduction started, the customers carried out audits in a way that wascompletely new to the company. In all cases long term contracts wereoffered by the customers. Growth was possible thanks to this certainty.The CEO only then realized how TQM got integrated in the wholeorganization. New customers admitted that the audit had convinced

them that TQM was part of the dailywork methods and not (as is oftenthe case) a performance during theaudit. Reliability and stability werethe most important criteria forsupplier selection.

All fences within the organizationare exceeded, the cooperation isseen at department level andprocesses are optimized within theboundaries of the organization. Thecustomer is still outside, which isthe next fence to overcome.


Phase 4 : Chain Orientation (score 800)

A few years later, the CEO and the reporter meet for the last time. Thereporter attends the National EFQM Award meeting, and the CEO willreceive the prize on behalf of his company. At dinner the reporter listensto the developments of the last few years. The new customers of a fewyears ago bring the company in a new situation. Long term contracts aredeveloping into stable partnerships, stimulating to develop similarrelationships with the own suppliers. Within these partnershipsimportant developments take place. Employees are exchanged,information systems are shared, research results are exchanged. Theclose cooperation resulted in a major improvement of productivity, for

both partners. Because the growthexceeded this improvement, massivelayoffs could be prevented. This wasthe case for all partners in theproduction chain.

The meaning of the fences? Eachemployee is aware of his or herscontribution to the customer. In asimilar way suppliers are part of theteam. Exchange of employees isoccurring frequently.

Phase 5 : TotalQuality (score 1000)

The dream hasbecome true. Basisprocesses are nolonger limited by theorganizationalstructures. ThisUtopia of QualityManagement is onlythreatened by thelack of furtherimprovement. Thereporter isconvinced, thatconsultants andmanagers will react before Utopia is reached. New ideals will develop,the EFQM model will either be extended to phase 6 and phase 7. Maybenew insights will result in a totally new model?

artikel 1 process control

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