1. Learning Objectives
Understand and apply recently issued GASB pronouncements
Identify and discuss governmental accounting best practices and other relevant topics to local governments
Explain and discuss changes to the Single Audit and Uniform Grant Guidance
Explain Ethics and Diversity as it relates to governmental entities
Define and interpret the Public Funds Investment Act
Understand how to impact risk management with data
Discuss the state of the economy
Understand concepts of occupational fraud and internal controls

2. Lean Six Sigma

3. Module Objective Agenda: What is Lean Six Sigma?
The Lean Six Sigma Organization
The Methodology for Improvement

4. What is Lean Six Sigma?

5. What is Lean Six Sigma?
A strategic problem solving and process improvement strategy that combines two powerful methodologies that focus on reducing waste and variation.
Lean Manufacturing Principles = Waste reduction
Six Sigma Methodology = Variation reduction

6. Why Lean Six Sigma?
Helping the organization make more money by improving customer value and efficiency
Focusing on improving quality (i.e., reducing waste and variation) by helping the organization to produce products or services better, faster and cheaper
Focusing on customer requirements, defect prevention, cycle time reduction and cost savings
Identifies and eliminates costs which provide no value to customers
“Six Sigma is about the quality of business, not the business of quality.” Dr. Mikel Harry

7. Why Lean Six Sigma? Lean Six Sigma creates:
An environment for improving productivity and efficiency
An opportunity to make improvements to traditional processes
A disciplined, knowledge based approach designed to enhance customer satisfaction
An environment which fosters innovation

8. What is Six Sigma? A structured business management philosophy
A driver for breakthrough performance
A way of thinking and making decisions
A systematic and focused approach to solving problems
A set of tools and concepts that change the culture of an organization for the better

9. What is Variation?
A measure that describes how spread out or scattered s a set of data is
It is also known as measures of dispersion or measure of spread

10. What Six Sigma Represents
Six Sigma can be converted to relatable terms:
Sigma Level
DPMO
Long Term Yield 2
308,537
69.15% 3
66,807
93.32% 4
6,210
99.38% 5
233
99.98% 6
3.4 %

11. Variation Reduction
Goal

12. What is Lean? Lean Manufacturing is Toyota Production System
A set of principles, concepts, and techniques
A relentless pursuit in the elimination of waste.
A just-in-time system that delivers:
Exactly what customers need
When customers need it
In the quantity customers need
In the right sequence
Without defects
And at the lowest possible cost
Henry Ford
Taiichi Ohno
Shigeo Shingo

13. Transportation to Inventory Area
Goal is to Eliminate Waste
Lean focuses on eliminating waste:
Found in the process
Identify the non-value added steps in a process
Transportation to Inventory Area
15 Days
Waiting
29 Days
Inventory Area
26 Days
Final Inventory
70 day Lead time
77 second Cycle Time
Prep File
42 seconds
Process File
20 seconds
Sign Off
15 Seconds
= Non-Value Added
Raw Material
Finished Goods
= Value Added
Taiichi Ohno: “Reduce the time line by removing non-value added wastes”

14. Business Non-value What is Value?
Value added: work elements that actually transform the product or service in a way that the customer is willing to pay for it
Business value added: work elements that transform the product that are necessary but do not add value to the product or service
Non-value added: work elements that transform the product that are not necessary or add value to the product or service
Reduce
Eliminate
Business
Non-value

15. Types of Waste Waste is defined as:
Anything that does not contribute to a product or service
If it does not add value, it adds WASTE!
7 Wastes
Transportation
Inventory
Over-Production
Over-Processing
Defects
Waiting
Motion

16. Types of Waste
Over-production – Production that is more than needed or before it is needed.
Inventory – Excess projects and material not being processed.
Over-processing – More work or higher quality than is required by the customer
Defects – Efforts caused by rework, scrap, and incorrect information
Motion – Unnecessary movements
Transportation – Unnecessary movements of products & materials
Waiting – Wasted time waiting for the next step in a process

17. Lean Six Sigma Organization

18. The Belts
In Lean Six Sigma there are different levels of experience and curriculum that are taught
Master Black Belt
Black Belt
Green Belt
Yellow Belt
Blue (White) Belt

19. Master Black Belt The Master Black Belt is:
Certified professional well versed in the Lean Six Sigma methodology
Completes 200 hours of accumulated training
Trains and mentors different level Belts
Participates in strategic assessment of Lean Six Sigma program
Leads and completes improvement projects
Full understanding of DMAIC
Understand and interprets Lean Six Sigma tools and principals

20. Black Belt The Black Belt is:
Certified professional well versed in the Lean Six Sigma methodology
Completes 160 hours of training
Leads and completes improvement projects
Full understanding of DMAIC
Understand and interprets Lean Six Sigma tools and principals

21. Green Belt The Green Belt is:
Certified professional who is versed in Lean Six Sigma methodology
Completes 80 hours of training
Typically a part-time role who leads improvement projects
Understands The aspects within DMAIC

22. Yellow Belt The Yellow Belt is:
Is a professional who is versed in the basics of Lean Six Sigma
Completes 8 hours of training
Typically a part-time role who aids in identification or participation in projects
Understand the aspects of Define, Measure, and Improve

23. Blue (White) Belt The Blue (White) Belt is:
Receives basic introduction to Lean Six Sigma concepts and tools
Complete two hour training
Participates and identifies projects

24. The Methodology for Improvement

25. Methodology The methodology for all continuous improvement is DMAIC
Define – identify the opportunity for improvement
Measure – measure the capability of the process and identify factors
Analyze – evaluate the factors to identify the root cause of waste and variation
Improve – identify and implement improvements
Control – implement controls for sustainment

26. Define The Define phase objective is to:
Understand the customer’s needs and requirements
Understand the product, service or process to be improved
Understand the scope of the improvement effort
Identify and select a project for improvement

27. Measure The Measure phase objective is to:
Evaluate the measurement system of the process
Evaluate the baseline capability of the process
Identify the variables that have the greatest opportunity to impact the output

28. Analyze The Analyze phase objective is to:
Evaluate the relationship of variables on the output of the process
Eliminate the insignificant factors
Isolate the variables that have significant effect on output of the process

29. Improve The Improve phase is about:
Develop the improvement ideas for process improvement
Implement the process improvement (Kaizen)
Validate the new process capability

30. Control The Control phase objective is to:
Design and implement a control plan for the process
Ensure standardization of the process through procedures, work instructions, and forms
Implement mistake proofing ideas (Poka-Yoke)
Hand off project to process owners

31. Module Objective Blue Belt Training Agenda: What is Lean Six Sigma?
The Lean Six Sigma Organization
The Methodology for Improvement

32. References
Kaplan, Robert S. and Norton, David P. (1996). Translating Strategy into Action: The Balanced Scorecard. Harvard Business School Press.
Eckes, George. (2001). The Six Sigma Revolution: How General Electric and Others Turned Process Into Profits. John Wiley & Sons.
George, Mike; Rowlands, Dave and Kastle, Bill. (2004). What is Lean Six Sigma?. McGraw-Hill.
George, Michael L. (2003). Lean Six Sigma For Service. McGraw-Hill.
Pyzdek, Thomas. (2003). The Six Sigma Handbook, Revised and Expanded: A Complete Guide for Green Belts, Black Belts, and Managers at All Levels. McGraw-Hill Books
Six Sigma Academy. (2004). Six Sigma Training Manual [PowerPoint slides]. Retrieved from Six Sigma Academy.
Six Sigma Consultants. (2002). Six Sigma Training Manual [PowerPoint slides]. Retrieved from Six Sigma Consultants.
Tapping, Don. (2003). The Lean Pocket Guide. MCS Media, Inc.
Womack, James and Jones, Dan. (1999). Learning to See: Value Stream Mapping To Create Value and Eliminate Muda. Lean Enterprise Institute.
OpenSourceSixSigma.com, (2009). Project Selection Process [PowerPoint slides]. Retrieved from Open Source Six Sigma.
COST – $900 per stone (we will do approx 5 per year)
FUNDING FROM - Contingency funds