lean six-sigman-for-service
Post on 15-Jul-2015
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Services have 30-80% waste Activities that have no value to the customer
Service activities are not used to collecting and using data about their processes
Focus on how the customer perceives value instead of how we are arranged internally
Shift resources to where their impact is maximized
Gajanan Shirke, www.gajananshirke.com
Lean focuses on speed of execution Velocity of a process is proportional to its flexibility
Maximize process velocity Speed acceleration tools
Optimize work flow Rapid action Kaizen teams
Eliminate delays Quantify and eliminate complexity
The complexity of the service generally adds more nonvalue added costs than both poor quality or slow speed process problems
Eliminate non value added steps 80% delays caused by 20% of the process steps
Gajanan Shirke, www.gajananshirke.com
WIP backlog Slow processes are expensive processes Chasing information Decision loops Interruptions Expediting necessary Work lost in cracks No visibility of overall process
Gajanan Shirke, www.gajananshirke.com
Backlog ties up resources Lead time= Work in Process/average completion
rate To increase efficiency, limit the amount of work you
allow into the process This works for materials, but not for face time with
the customer Pull system is good control mechanism
Cap at maximum WIP, create buffer, triage work coming out of the buffer as a pull
Gajanan Shirke, www.gajananshirke.com
Process efficiency = value-add time/ total lead time It qualifies how much opportunity exists Track work items through system and create a time
value map Does that part of the process add value recognized by the
customer?
Work to eliminate non value added sections Less required waste for accounting, legal, or regulatory
requirements
Gajanan Shirke, www.gajananshirke.com
Six sigma focuses on accuracy Recognize opportunities and eliminate defects
based on customer’s value Eliminate variation Use statistical tools Seek documented, repeatable processes
Infrastructure to support continued progress Identification of customer critical to quality needs
Gajanan Shirke, www.gajananshirke.com
Management must be engaged Allocate resources to high priority projects Train everyone Eliminate variation
Drives narrower bell curves 99.9997% +/- 6 standard deviation from the mean
Gajanan Shirke, www.gajananshirke.com
Use a value stream analysis to diagram the process flow Find time traps
Get agreement on areas of waste. Establish ownership and create priorities. Display priorities Track and display daily performance Manage expectations
Communicate Provide feedback
Gajanan Shirke, www.gajananshirke.com
Customer
Post Solicitation on FBO
Address Inquires
Receive Questions
Post Q&As
OBuyer
OBuyer
Amend Solicitation
Respond to Protests
OBuyer
Receive ProtestValidate protest
Amend if required
Review questions
Draft Notice
Chart6
Upload tech drawings
Refresh bidlibrary
Develop answers
Post notice
Determine need for amendment
Issue CO determination
PCO OBuyer
Solicit Offers
Issue Solicitation
Determine need for amendment
Gajanan Shirke, www.gajananshirke.com
Customer critical to quality “must haves” are the highest priority for improvement Next are ROIC and Net present value
Gajanan Shirke, www.gajananshirke.com
Price paid is a reflection of value to the customer How well do your services meet the customer’s
needs What customer needs are you not meeting What offerings have no value to customers How do you compare to your competition What are world-class levels of performance
Gajanan Shirke, www.gajananshirke.com
Align your priorities to your customer’s Transform customer needs into functional requirements
and then into design requirements Quality Function Deployment Segment market, research market, analyze data Repeat to refine understanding of customer needs
Define, measure, analyze, improve, control
Gajanan Shirke, www.gajananshirke.com
Contribute at such a high level of service that our work promotes and fosters to continued advancement of the organization’s mission
Gajanan Shirke, www.gajananshirke.com
Understand value from the customer’s prospective Understand where product and service value are
created in the organization (value stream) Optimize for flow to get to optimal performance Focus on cycle time and pull
Shrink process time to the minimum to speed response to customer changing needs
Achieve Six Sigma quality at lean speed
Gajanan Shirke, www.gajananshirke.com
Convince folks to devote time to LSS Understand need for changes in layout Sometimes lean changes required are
counterintuitive to services Reduce WIP
Translate LSS into lingo understood within workplace
Build an awareness of what waste looks like
Gajanan Shirke, www.gajananshirke.com
Give business units the credit Tailor models to fit Use a pace that fits organizational readiness Don’t force it on people– generate pull Solve problems cross functionally Speed creates more noticeable improvements and
quicker results Data gathering and analysis takes time
Gajanan Shirke, www.gajananshirke.com
Burning Platforms are your biggest competitive or strategic challenges Here you will create shareholder (taxpayer) value Represents your competitive advantage Compare against world class Do a value stream and compare value creation vs
value destruction Measure growth potential also
Compare investment required vs EV of payoff
Gajanan Shirke, www.gajananshirke.com
Shut down processes that destroy value, are unprofitable in the market, where competitors are advantaged
Invest to improve position of processes where you are competitively advantaged, even though you are currently destroying value and not getting a profit Should be close to breakeven re economic profit
Gajanan Shirke, www.gajananshirke.com
If you are value neutral, at economic breakeven, yet competitively disadvantaged, weigh the costs of removing waste to the potential EV of being more responsive to the customer
If you are competitively advantaged and creating value, just monitor to maintain market. Not as critical to invest Better opportunities in other value streams
Gajanan Shirke, www.gajananshirke.com
The task adds a function or feature that the customer will pay for
The task provides you a competitive advantage (reduced price, faster delivery, better quality)
The customer prefers what we will produce over our competitors
Gajanan Shirke, www.gajananshirke.com
Gotta do these even though the customer will not pay for it
Required by law or regulation Reduces financial risk Financial reporting requirements Critical to process stability
Gajanan Shirke, www.gajananshirke.com
Rework, expediting. Multiple signatures, counting, handling, inspecting, setup, downtime, transporting, moving, delaying, storing
Create congestion, variation, complexity Does not consume existing capacity while
producing higher revenue
Gajanan Shirke, www.gajananshirke.com
Look for time traps Look for build up in WIP Consider what are the cost drivers/ failure modes Evaluate cost to remove impediment vs expected
value of improvement Pareto chart is a good tool for comparing
contributions of process corrections toward error rates
Gajanan Shirke, www.gajananshirke.com
Use these tools to Define: Value stream map, non value added analysis Measure: Process cycle efficiency, process sizing Analyze: Constraint identification, Time trap analysis,
Queuing theory Improve: Kaizen, Process flow improvement Control: Visual control process
Gajanan Shirke, www.gajananshirke.com
Sort Straighten Shine Standardize Sustain Plus one Safety CLEAN UP YOUR DESK
Gajanan Shirke, www.gajananshirke.com
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