Concepts of Value and Waste

Concepts Of Value And Waste
Copyright © Six Sigma Academy International LLC All Rights Reserved

Concepts of Value and Waste
Module Objectives By the end of this module, the participant should be able to: Explain the benefits of Lean Thinking Understand concept of Value-Added activities Explain the five principles of Lean Describe the seven types of waste and give examples of each type in a process Describe the three major contributors to waste and give examples of each contributor in their process Discuss the reasons why it is important to make waste visible Copyright © Six Sigma Academy International LLC All Rights Reserved Concepts of Value and Waste

Lean Thought Leaders Historically, firms have been organized, based on functional silos and poorly defined processes – They are loaded down with Non-Value-Added waste. Based on the successes of Toyota and other highly efficient firms, the authors of The Machine That Changed the World and Lean Thinking have defined an idealized model for operational efficiency, and a means to pursue that ideal. Authors: James Womack and Dan Jones Lean Thinking demands an organizational culture that is intolerant of waste in all forms. Copyright © Six Sigma Academy International LLC All Rights Reserved Concepts of Value and Waste

Lean Thinking Is Different From Past Improvement Programs
Simple changes to work methods make huge contributions It is owned by people doing the work It reduces workload rather than increasing it It is easy to understand and implement It not only makes your firm more competitive, it makes your firm a better place to work Copyright © Six Sigma Academy International LLC All Rights Reserved Concepts of Value and Waste

Benefits Of Lean Thinking
Significantly reduced process lead time Elimination of costly Non-Value-Added activities Enhanced value creation and team focus Reduced non-recurring and indirect costs Improved utilization of scarce resources Maximized synergy among all related processes Copyright © Six Sigma Academy International LLC All Rights Reserved Concepts of Value and Waste

Some Metrics Of Lean Business Processes
Lean businesses are passionate about measuring the performance of processes. Any or all of these measures can be used to quantify progress toward lean business processes: Consistency of Delivery Capacity to Handle New Work Process Cycle Time Profit Margin on Sales Length of Process Queues Measurable Improvement Key Insight - This chart provides just a short list of the possible metrics of lean business processes. It is worthwhile to talk through each bubble briefly and indicate how the metric can be used to quantify the success of lean tools and methods. Several of the metrics (e.g., profit margin on sales, process cycle-time, length of process queues, etc.) are fairly straightforward and don’t require much explanation. The others are described below. Secondary Points - 1) The capacity to handle new work may be the most compelling reason for adopting the LT toolset. In a real sense, LT can free up availability of key (constraining) resources and enable your client’s firm to take on more revenue-generating activities. LT can directly and significantly impact the “balance sheet” of the business. 2) Productivity per employee is both the most difficult metric to measure, and probably the most valuable from a business standpoint. You can ask the audience here to estimate how much time they spend in any given day actually creating customer value and how much time is wasted doing non-value added activities. Studies have shown that the actual value-added time of many knowledge workers can be as low as 1 to 2 hours per eight-hour day. 3) Perhaps the most interesting metric on this chart is return on capital investment (also known as return on capital employed). Shareholders have become increasingly interested in this measure of corporate efficiency, particularly in a world of intellectual property and extensive outsourcing of capital-intensive activities. Make the point that lean methods enable reductions in inventories, carrying cost of materials, etc., all of which tend to improve return on capital. Productivity per Employee Level of Employee Multi-tasking Return on Capital Investment Copyright © Six Sigma Academy International LLC All Rights Reserved Concepts of Value and Waste

The Role Of Lean Thinking
The methods of Lean Thinking provide an efficient way to reduce operational waste, save time, save cost, and extend capacity of valuable resources. ...and a lean value stream for the same process: Desired Outcome A typical waste-filled value stream... Task Waits in Queue Deliverable Created Unnecessary Task Approval Cycle Error-Correction Loop Copyright © Six Sigma Academy International LLC All Rights Reserved Concepts of Value and Waste

Lean Thinking Removes Obstacles To Improvement
Poorly defined organizational roles and responsibilities Chaos resulting from firefighting and expediting Habit of managing through a functional organization Lack of well-defined and efficient processes Poor utilization of valuable human and capital resources Lack of metrics focused on customer Value-Added processes Lack of productivity enhancing work methods Lack of uniform prioritization of work Copyright © Six Sigma Academy International LLC All Rights Reserved Concepts of Value and Waste

New Competition – New Standards!
10 20 30 40 50 60 70 80 Computers Software Telecom Drugs Automotive Energy Aerospace Percent Increase in Productivity ( ) Dramatic Improvement In Just the Last Four Years! Source: Business Week – January 8, 2001 Improved work methods have enabled significant productivity improvement in virtually every industry… Don’t get left behind! Copyright © Six Sigma Academy International LLC All Rights Reserved Concepts of Value and Waste

Categories Of Waste (Or MUDA)
Process Waste Serial Actions Correction Loops Unnecessary Steps Undefined Paths Undefined Roles Cycle Time Waste Unnecessary Delays Approval Cycles Low Value Meetings Lack of Information Slow Transactions Product Waste Missed Target Costs Design Errors Missed Synergies Poor Producibility “Point Designs” Resource Waste Multitasking Lack of Prioritization Misaligned Incentives Unnecessary Tasks Firefighting/Expediting Copyright © Six Sigma Academy International LLC All Rights Reserved Concepts of Value and Waste

How Lean Do You Think You Are?
The Opportunity* 20% – 60% Reduction in Process Lead Times >50% Improvement in Resource Utilization 10% – 50% Increase in Gross Margins >30% Gain in Process Capacity Dramatic Improvement in Schedule Predictability * Based on reported results from firms spanning several industries, 1999–2000 Copyright © Six Sigma Academy International LLC All Rights Reserved Concepts of Value and Waste

Lean Thinking “Waste” describes the elements of “production” that add no value to the service or product required by the customer. Historically, firms have been organized based on functional silos and poorly defined processes – They are loaded down with Non-Value-Added waste. Lean Thinking demands an organizational culture that is intolerant of waste in all forms. Copyright © Six Sigma Academy International LLC All Rights Reserved Concepts of Value and Waste

Definition Of Value “Any activity or task that transforms the “deliverables” of a process in such a way that the customer is both aware of it, and willing to pay for it, is Value-Added” Based on this (strict) definition of value, we can divide the tasks and activities of any process into three categories Value-Added (essential) tasks Type 1 Waste – Non-Value-Added (NVA), but currently necessary Type 2 Waste – Non-Value-Added (NVA), and not necessary Our goal is to eliminate Type 2 activities wherever possible, and minimize the waste in Type 1’s through the use of Lean Methods. Copyright © Six Sigma Academy International LLC All Rights Reserved Concepts of Value and Waste

Value-added Quiz In which category should the following activities be placed? Activity Value-Added Type 1 Type 2 Attending a weekly team coordination meeting Filtering through your daily list Reporting status to upper management Gaining multiple approvals on documents Gaining management approval for routine actions Expediting a document through the approval list Writing formal policies and procedures Writing brief work-method instructions Gaining regulatory or agency approvals Creating ISO 9000 documentation Hunting for needed information to do your job Building a “best practices” database Holding a lessons learned meeting Spending time on process improvements Key Insight - This is a fun exercise that you can use to get people involved and focused on value-added vs. non-value-added activities. You can either break the group up into teams and then have each team score the various activities or you can just do each line as an interactive exercise with the whole group. Secondary Points - 1) Most of these activities are Type 1, in that there is some value buried in there under the waste. The goal of this exercise is to point out how hard it can be to spot, segregate, and eliminate waste. There are no right and wrong answers here; the degree of waste in these generic process activity descriptions is highly industry and company specific. Here are some general guidelines for class discussion: Weekly coordination meetings are almost always Type 1 or 2. Reasons are because agendas are not followed, coordination and technical discussions are mixed in the same meeting, the wrong people (or too many people) are in attendance, and no action list is maintained. Stand-up meetings are the countermeasure here. s are terribly wasteful (mostly Type 2, except for the few s that you actually care about), primarily because of the lack of controls on “CC” distribution. “rules” like how many names can be on copy address lists can be a big help here. Generally this is considered Type 1: necessary but evil. Solution is reporting through “Andon” signals and exception management reporting of only “important” changes to default process execution. Approvals in general should never be needed in a recurring process (Type 2). Only legitimate approvals are for exceptions to default process, financial expenditure, sensitive documents that will exit the company, and non-recurring changes to default process. Expediting is a Type 2 “band-aid” for poor process execution. Formal policies and procedures are generally Type 2; they can become highly valuable when reduced to useable work methods, work instructions, or transaction maps. Otherwise, they sit on the shelf and gather dust. Brief work methods and instructions can be a “least-waste-way”, although they technically don’t add value (hence they are a “lean Type 1”) Regulatory approvals, along with the ISO 9000 question that follows, fall in a special category of “table stakes.” You need to accomplish these milestones, but they don’t directly add value (they only enable value-creation). The treatment here is to achieve the required approvals, etc. in a least-waste way. Hunting for information is Type 2. Best practices databases, along with the next item, lessons learned meetings, are only “Value” if they are successfully used in future improvement activities. This is often a source of Type 2 waste, despite the best efforts of those developing the materials. Finally, spending time of process improvements is “Value” if there is a payback which more than compensates for the cost (in time and money) of the improvement. Otherwise, it is Type 2 (diminishing return syndrome). Copyright © Six Sigma Academy International LLC All Rights Reserved Concepts of Value and Waste

The Five Principles Of Lean Thinking
Lean Thinking can be summarized in five principles*: Principle 1 – Precisely specify the value of a specific process Principle 2 – Identify the value stream for each process Principle 3 – Allow value to flow without interruptions Principle 4 – Let the customer pull value from the process team Principle 5 – Continuously pursue perfection Key Insight - Emphasize that these five simple principles really define what it means to be an excellent company. In the context of a process-driven enterprise, that means being able to identify exactly the process output or deliverable that the customer desires, determining the minimum set of tasks / activities that are needed to deliver that value, eliminating barriers within the process environment that might inhibit the free flow of value (Principles 1 through 3). The fourth principle is more subtle, and can be interpreted as meaning that the specific nature of deliverables, their format and content, etc. must be determined as much as possible by direct inputs from the customer. The fifth principle simply acknowledges that firms must continuously attack waste in their processes, because if we are not vigilant, “entropy” will act to bog down processes with new forms of waste and inefficiency. Secondary Points - 1) These principles were first proposed in a 1997 book by Womack, Jones, and Roos entitled “Lean Thinking.” This is an easy read for any process team member. Reference is on final chart. * Womack, J. P. and D.T. Jones, 1996, Lean Thinking, Simon & Schuster Copyright © Six Sigma Academy International LLC All Rights Reserved Concepts of Value and Waste

Principle #1 Specify And Focus On Value
Point of Optimized Output Value Increased Value of Process Output Key Insight – This is the “value bull’s eye” concept. If a process team delivers more than the customer wants or needs (based on our value definition) then costs increase and profit margins suffer, since the price will not increase but the cost does increase. On the other hand, if the process team delivers less than a “total solution” (in other words, less than what would be considered optimal by the process or transaction customer), then profits also suffer, since the price will drop more rapidly than the cost. In the middle there is an optimal point at which costs are optimized and profit margins are maximized. Naturally, the problem with this model is that to find that “peak” you need more insight into the customer’s needs than is typically available. The following slides, and the workshop exercise, provide some practical guidance. Too Much Information, Unnecessary Features, Etc. Missed Value Opportunities Cost of Process Output Copyright © Six Sigma Academy International LLC All Rights Reserved Concepts of Value and Waste

Principle #2 Identify The “As Is” Value Stream
Customer Meetings The Value Stream is the ideal sequence of value-creating steps that lead from a triggering event to a final deliverable without waste. Example – Creation of a Request for Quotation (RFQ) C/T = 14 days W/T = 2 days VA/T = 1 day Assign Buyer Gather Strawman Requirements Verify Customer Requirements Consult With Manufacturing Engineer Create Preliminary RFQ C/T = 3 days W/T = 4 hours VA/T = ~ 0 C/T = 14 days W/T = 5 days VA/T = 1 day C/T = 5 days W/T = 2 days VA/T = 4 hours C/T = 5 days W/T = 3 days VA/T = 1 day C/T = 14 days W/T = 5 days VA/T = 3 days Review and Approval Cycle C/T = 5 days W/T = 1 day VA/T = ~ 0 Key Insight - The value stream is the essential sequence of activities that transform raw materials (or knowledge in the case of service products) into end products or process deliverables that have value in the marketplace. In the above case, the value stream is shown for a sales order process. The format for this “value-stream map” is similar to that which is recommended by the Lean Enterprise Institute. I have modified this notation for the workshop portion of this class to a more simplified and intuitive set of symbols which are more applicable to business processes. Note that the value stream of interest is that stream of value-creating events that lead from an initial triggering event for the client’s process to the delivery and acceptance of final deliverables. Secondary Points - 1) Any activity that is not part of the essential value stream is waste (a non-value-adding activity). The primary focus of lean thinking is to eliminate waste to free resources to focus on efficient creation of value. Instructional objective: provided a brief description of the five sigma wall, what it is, why it exists and how to get over it Discuss the evolution of six Sigma in organizations Need notes for instructor. C/T = Calendar Time W/T = Work Time VA/T = Value-Added Time Review and Approval Cycle Create Final RFQ Release RFQ C/T = 2 days W/T = 1 day VA/T = 2 hours C/T = 5 days W/T = 1 day VA/T = ~0 C/T = 5 days W/T = 3 days VA/T = 1 day Copyright © Six Sigma Academy International LLC All Rights Reserved Concepts of Value and Waste

Work Time vs. Value-Added Time
“Lead” Time Lead Time – The actual duration of a task from start to finish (the calendar time). Work Time – The shortest time currently possible for a task. Value-Added Time – The amount of the work time that is actually Value-Added…the rest is waste! Key Insight – This chart is the first point in the class in which the topic of “value-added” is introduced. Value-added must be defined in terms of a very precise definition of value: “A task or transaction is value-added if it transforms the final deliverables of a process such that the customer for the process both recognizes the result and is willing to ‘pay’ for it.” Hence, many tasks within a process, when performed in the traditional way, may include a bit of value-added along with a good deal of waste. This is the reason that the “work time” is longer than the “value-added time.” Secondary Points – The “lead time” is the duration of a task or activity from beginning to end as measured in days on a calendar. The “work time” is the time it would take a dedicated person to complete the task with all information needed and without interruptions. Note that this is typically shorter than the lead time, since often tasks must wait in “queues” for available resources, or process team members must multitask and “fight fires.” The “value-added” time is the theoretical shortest time to complete a task, if the process team member only did those things that directly contribute to value, as defined above. This is not necessarily a realistic goal for some activities, but often significant savings can be derived from simply redefining a task to be more “pull driven” and focused on customer-defined value creation. Copyright © Six Sigma Academy International LLC All Rights Reserved Concepts of Value and Waste

Principle #3 Eliminate Obstacles To The Flow Of Value
Functional Departments Unnecessary Documents Unnecessary Queues and Wait Times Multiple Approvals Key Insight – Go through each of the obstacles listed above and discuss with the class how each can obstruct the flow of value. Note that “time batches” are first introduced on this slide. You may wish to wait on defining this term until a few charts later. For now, you can just make a reference to the waste associated with team members waiting for information, either internally or from the customer. Inadequate Resources There can be many obstacles to the flow of value! Customer Copyright © Six Sigma Academy International LLC All Rights Reserved Concepts of Value and Waste 6 5 5 5

Principle #4 Let The Customer Pull Value
Remember: “Customers” can be both internal and external If… Every activity within a process has a “deliverable,” and... Every “deliverable” must be received by some “customer” Then… The best way to ensure a satisfied “customer” is to have them DEFINE THE FORMAT AND CONTENT OF THEIR DELIVERABLES Key Insight – The most important point of this slide is that “customers” can be both internal and external to the process team. The “pull” concept in this case means that the receiver of any outcome, transaction, or deliverable (again, internal to the process or to the external process customer) should define the nature of that deliverable. In this sense, the receiver is pulling what is desired from the deliverer. Secondary Points – 1) The idea of “customer-defined deliverables” captures the opportunity to reduce waste through customer pull. The level of customer feedback on deliverables can include creating rather elaborate prototypes, simulations and mock-ups of deliverables, samples, templates, strawman documents, or simply providing the customer with an example of a document or drawing from a previous customer and asking whether this format should be modified to suit the new customer Only “produce” what customer needs “Customer” Defined Deliverables Linked Tasks Timely Information Flow Copyright © Six Sigma Academy International LLC All Rights Reserved Concepts of Value and Waste

Principle #5 Continuously Pursue Perfection
It takes about a week for THIS to look like THIS! Key Insight – This is a very simple, but important, concept. Waste has a strong tendency to increase over time, unless energy is continuously focused on eliminating it. This is often referred to as the “entropy effect”; in physical systems, there is a natural tendency toward increasing randomness, unless energy is added to retain order. Waste constantly invades every work process. Disorder tends to naturally increase. Constant vigilance is essential to maintain lean production and lean business processes! Copyright © Six Sigma Academy International LLC All Rights Reserved Concepts of Value and Waste

Seven types of waste: Overproduction Inventory Waiting Transportation Motion Making defects Over processing Three contributors to waste: Unevenness Overburden Current methods and processes Copyright © Six Sigma Academy International LLC All Rights Reserved Concepts of Value and Waste

What Is Waste Of Overproduction? (Type 1)
Producing more than needed (beyond customer demand) Producing faster or sooner than needed Visible as stored material Result of producing to speculative demand (forecast) Copyright © Six Sigma Academy International LLC All Rights Reserved Concepts of Value and Waste

Waste Of Overproduction Examples
Identify at least 3 “Transactional” examples Team 1 flipchart Copyright © Six Sigma Academy International LLC All Rights Reserved Concepts of Value and Waste

What Is Waste Of Inventory? (Type 2)
Excessive in-process or finished goods inventory caused by large lot production or processes with long cycle times Inventory should exist for two reasons: Buffer required to maintain throughput in an environment where variation is present Satisfy customer demand Reducing variation enables inventory reduction Finished Goods WIP Copyright © Six Sigma Academy International LLC All Rights Reserved Concepts of Value and Waste

Inventory Hides Problems
Long setup times will be tolerable if high levels of inventory exist Equipment does not have to be carefully maintained if lots of inventory is on hand Quality does not need to be at Six Sigma if inventory is high Inventory is like a river, when water level is lowered, boulders have to be dealt with Scrap Long set ups Machine downtime Lack of teamwork Imbalanced lines Quality problems not capable Processes Maintenance issues Productivity Problems Suppliers’ issues Inventory Level Copyright © Six Sigma Academy International LLC All Rights Reserved Concepts of Value and Waste

Waste Of Inventory Examples

What Is Waste Of Waiting? (Type 3)
Idle time that results when two dependent activities are not fully synchronized Waiting for a machine to process Copyright © Six Sigma Academy International LLC All Rights Reserved Concepts of Value and Waste

Waste Of Waiting Examples

What Is The Waste Of Transportation? (Type 4)
Any material movement or handling Transportation does not add value and should be minimized or eliminated Copyright © Six Sigma Academy International LLC All Rights Reserved Concepts of Value and Waste

Waste Of Transportation Examples

What Is The Waste Of Motion? (Type 5)
Any movement of people or machines which does not contribute added value to the product or service Programming delay times Excessive walking distance between operations Ergonomic/safe motion Copyright © Six Sigma Academy International LLC All Rights Reserved Concepts of Value and Waste

Waste Of Motion Examples

What Is The Waste Of Making Defects? (Type 6)
Repair of a product or service to fulfill customer requirements Scrap Warranty Customer returns Copyright © Six Sigma Academy International LLC All Rights Reserved Concepts of Value and Waste

Waste Of Making Defects Examples

What Is The Waste Of Over-processing? (Type 7)
Effort which adds no value to a product or service Enhancements which are “invisible” to the customer Work which could be combined with another process Copyright © Six Sigma Academy International LLC All Rights Reserved Concepts of Value and Waste

Waste Of Over-processing Examples

Three Contributors To Waste
Unevenness Overburden Current methods Copyright © Six Sigma Academy International LLC All Rights Reserved Concepts of Value and Waste

Unevenness Unevenness is unwanted fluctuations in production planning and production quantity. Unevenness can be observed in: The overall production quantity The amount of work done by workers The flow of parts The use of machines and equipment Copyright © Six Sigma Academy International LLC All Rights Reserved Concepts of Value and Waste

Contributor To Waste Unevenness Examples

Overburden Overburden occurs when a machine or person is pushed beyond safe and comfortable capacity limits. Copyright © Six Sigma Academy International LLC All Rights Reserved Concepts of Value and Waste

Contributor To Waste Overburden Examples

Current Methods Current Methods are the use of processes, methods or layout, without improvement, because they currently exist. Inflexible processes Same old problems Guiding principle: “Don’t be limited by the status quo” Copyright © Six Sigma Academy International LLC All Rights Reserved Concepts of Value and Waste

Contributor To Waste Current Methods Examples

Identifying Waste Report Outs
From your assigned topics: Identify examples of: Types of waste Contributors of waste Select a spokesperson to debrief results 30 minutes to prepare, 20 minute total report out Copyright © Six Sigma Academy International LLC All Rights Reserved Concepts of Value and Waste

Why Make Waste Visible? Identify bad strategies and practices lead to waste Must understand process to improve Define opportunities to improve You can only fix or improve what you can see Copyright © Six Sigma Academy International LLC All Rights Reserved Concepts of Value and Waste

What Tools Exist To Make Waste Visible?
Workplace organization 5S Visual workplace Spaghetti Chart Process Flow Diagram Pareto Chart Cause and Effect Diagram Five Whys Process Reports and Assessments We will discuss in detail with a module on this topic. Copyright © Six Sigma Academy International LLC All Rights Reserved Concepts of Value and Waste

Techniques Used To Implement Lean
Workplace organization/5S Visual management Floor layouts Small lot “production” Quick setup Total productive maintenance Standardized work Continuous improvement activities We will learn some of these this week and in future training. Copyright © Six Sigma Academy International LLC All Rights Reserved Concepts of Value and Waste

Techniques Used To Implement Lean
Level scheduling Machine and process capability Variation reduction Error proofing Pull systems Supplier rationalization Supplier development Transportation We will learn some of these this week and in future training. Copyright © Six Sigma Academy International LLC All Rights Reserved Concepts of Value and Waste

Objectives Review The participant should now be able to: Explain the benefits of Lean Thinking Understand concept of Value-Added activities Explain the five principles of Lean Describe the seven types of waste and give examples of each type in a process Describe the three major contributors to waste and give examples of each contributor in their process Discuss the reasons why it is important to make waste visible Copyright © Six Sigma Academy International LLC All Rights Reserved Concepts of Value and Waste

Lean Concepts The Five Principles of Lean Precisely specify the value of a specific process Identify the Value Stream for each process Allow value to flow without interruptions; eliminate obstacles Let the customer pull value from the process Continuously pursue perfection Value Stream Mapping Mapping the process allows us to understand process to improve Value Stream is all actions required to bring a specific product/service through three critical tasks: Problem solving Information management Physical transformation Identify value added activities Define opportunities to remove Non-Value-Added steps Value Stream Map of the ideal process (future state) Key Concepts Value “Any activity or task that transforms the “deliverables” of a process in such a way that the customer is both aware of it, and willing to pay for it, is Value-Added.” Value Stream Mapping Questions Who was involved in the creation of the Value Stream Maps? Was it a cross-functional team? What was your method for measuring process time observations (cycle time, lead time, work or touch time, calendar time, etc.)? Did you walk the process to validate the Value Stream Map? How did you create the future state Value Stream Map? Can we remove those process steps that do not add value? What are the baseline metrics (RTY, Takt Time, failure rates, defect types, etc)? Copyright © Six Sigma Academy International LLC All Rights Reserved Concepts of Value and Waste

Concept Of Waste The Seven Types of Waste Overproduction Inventory Waiting Transportation Motion Making Defects Overprocessing Contributors to Waste Unevenness Overburden Current Methods and Processes Key Concepts Waste Identify types and contributors of waste in operations Lean demands an organizational culture that is intolerant of waste in all forms Tools to Make Waste Visible Workplace Organization 5S Visual Workplace Spaghetti Chart Process Flow Diagram Pareto Chart Cause and Effect Diagram Five Whys Process Reports and Assessments Key Concepts Takt Time Demand Profile Establishment (“Takt" Time) a German term that refers to the tempo set by the conductor of an orchestra, it is a calculation that sets the rate of production equal to the average customer demand. Copyright © Six Sigma Academy International LLC All Rights Reserved Concepts of Value and Waste

Making Waste Visible Questions on Making Waste Visible DMAIC Lean
What tools to make waste visible have you used and how were they helpful? Was a waste chart useful in identifying times for storage, handling, inspection and processing (SHIP)? What interim actions have you taken to eliminate waste? Was a formal 5S conducted? Were safety items identified? Actions? Did this have any impact on operator/administrator morale? Does the spaghetti chart indicate potential changes to the layout? Are additional techniques required? Has a FMEA (Failure Modes and Effects Analysis) been completed to identify potential risks of changing the process? What are your improvement plans and next steps to get there (including timing, responsibility and expected results)? How did the spaghetti chart change before and after changes? Did the more detailed process flow diagram illustrate more than one way of doing things? Hidden factory? Lean DMAIC The methods of Lean provide an efficient way to reduce operational waste, save time, save cost, and extend capacity of valuable resources. Process Blitz or Kaizen Were expectations set for the Kaizen based on earlier findings? Was a plan in place to meet the expectations? What techniques were used? How many Kaizen’s were conducted? Did actions create a positive attitude towards change and success? How did before and after change metrics compare? Was it a base hit or a grand slam? Lean Report Out Questions and Key Concepts Key Concepts Implementation Biased for IMMEDIATE action “Just do it” mindset Copyright © Six Sigma Academy International LLC All Rights Reserved Concepts of Value and Waste

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