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Business Process Engineering & Process Improvement

MODULE 6

Lean Six Sigma Problem Solving

Methodology for BPE

Business Process Engineering & Process Improvement

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Module Objectives

At the end of this module, you will be able to:

Explain the relationship between BPR/BPI and Lean Sigma Six problem solving and process improvement.

Business Process Engineering & Process Improvement

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Lean Six Sigma Problem Solving Methodology for BPE/BPI

Six Sigma is intended to improve profits through defect reduction and improved customer satisfaction. It involves a systematic and analytical process identifying, anticipating and solving problems....--Jeston and Nelis

Business Process Engineering & Process Improvement

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Six Sigma Development

Six Sigma was first developed by Motorola in the 1980's to solve production problems of process variation, manufacturing defects and cycle-time.

General business-management philosophy focus:

• Meeting customer requirements

• Improving customer retention

• Improving and sustaining business products and services

Business Process Engineering & Process Improvement

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Lean Processing Development

The Lean processing philosophy started at Toyota in the 1940’s. Lean tools were developed to solve the problems of:

Poor productivity

Excessive waste

Customer dissatisfaction

The lean philosophy focused on eliminating waste in a manufacturing process

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Lean Six Sigma Concepts

Identify Value

Define Value Stream

Determine Flow

Define Pull

Improve Processes

Value Stream Map

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The Lean Six Sigma Integration

Lean Six Sigma combines the “Lean Processing” manufacturing and the Six Sigma focus

Lean Manufacturing + Six Sigma Quality = Better Quality Faster

Lean Six Sigma is used to resolve problems then fully optimize business processes

Business Process Engineering & Process Improvement

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Managing with Lean Six Sigma

 A Lean Six Sigma project:

Is not "owned" top-level management.

Merges leadership and frontline employee insight

Lean Six Sigma management benefits include:

Upper management stays informed of front-line problems

Frontline personnel can resolve customer service issues

“Best Practices” are adopted organization wide

Business Process Engineering & Process Improvement

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BPE/BPI Compatibility Factors

Lean Six Sigma problem solving methodology and a BPE/BPI process management project could be mutually beneficial:  

Both require strong top-level management

Use many of the same tools and methods

Improve processes benefiting the customer and the organization 

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Lean Six Sigma and BPE/BPI

Lean Six Sigma tools pre-date BPE/BPI

Lean and Six Sigma methods help solve problems

Lean Six Sigma is not a reincarnation of BPE/BPI

Lean Six Sigma adds competitive value to a BPE/BPI project

Lean Six Sigma focuses BPE/BPI projects on customer satisfaction

DMAIC to Improve Speed, Quality, and Cost

Business Process Engineering & Process Improvement

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DMAIC to Improve Speed, Quality, and Cost

Business Process Engineering & Process Improvement

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Business Process Engineering & Process Improvement

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Six Sigma Concepts

Critical to quality

Defect

Process capability

Variation

Stable Operations

Design for Six Sigma

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Six Sigma Skill Levels

Green Belt

Black Belt

Master Black Belt

Executive Leadership

Champions

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Keys to Lean Six Sigma

Delight the Customer

Improve Processes

Use Teamwork

Use data and facts

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ACTIVITY: Are the Measurements Reliable? In your small groups, write down each of the objects in your group including your own.

Do not to talk or communicate with other members of your group during the exercise.

Measure and record the length, width and depth of your object, but do not let other group members see the recorded data.

After completing the measurement of your object, pass the object to another group member and again record the length, width and depth without disclosure to other team members.

After each member of your group has recorded the length, width and depth for all the objects in your group, instruct the group members to multiply the length, width and depth of each object to arrive at a single value--the Desk Space Factor (DSF) for each object.

Do not use calculators and remember no talking is permitted.

Turn over your paper and repeat the measurement process of all the objects without looking at their first set of measurements.

Lean Six Sigma and BPE/BPI

Business Process Engineering & Process Improvement

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When to use DMAICWhen not to use DMAIC

• When problems are commonplace and not well defined

• When there are unknown causes of errors

• In complex situation with many variables

• Top management is not committed to improving the process with Six Sigma methodology

• Training and support for the Six Sigma process are insufficient

• A process is so badly broken that you need to start over from scratch or you are designing a new product, service, or process

Business Process Engineering & Process Improvement

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Module Wrap-up We discussed the purpose of adding the Six Sigma or

Lean Six Sigma methodology to a BPE/BPI program

We explained the relationship between BPR/BPI and Lean Sigma Six problem solving and process improvement

We talked about the tools skill levels and key concepts of Six sigma and Lean Six Sigma

We had an activity to work with the Lean Six Sigma concepts of accuracy, repeatability, reproducibility, stability and resolution