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Six Sigma – Analysis: Landing planes

Example: Landing planes

One of the best ways I have seen the six sigma concepts introduced uses the example of landing planes.

Observing a pattern

Consider a run-way where planes are landing. If you would observe enough planes, you would see the following happening:

  1. The bulk of all planes land in the safe ‘green zone‘ away from the borders of the runway.
  2. Most planes actually do land closely to the middle of the runway (the mean), some of them a bit further away to the left or right from the middle, and only a few quite far away from the middle.

Plotting Results

If you would measure long enough the distance in centimeters from the exact middle where each plane touches the ground on the tarmac, you can see that the pattern observed in time forms a normal distribution. A pattern with a mean (the middle line) and a standard deviation (the extent to which planes land further away from the middle line.) This is called the Gaussian Bell Curve with on the vertical axis the number of planes landed and on the horizontal axis the number of centimeters from the middle.

Normal Distribution

All data is now subdivided in segments called standard deviations (sigma) both to the left and to the right of the mean. The bulk of the landings are within 1-sigma from the mean, in a normal distribution this is about 34% of landings to the right and 34% of landings to the left. Outside the 3-sigma borders we can find only a small remainder of landings representing 0.27% of all landings.

Failure Criteria

The actual width of the runway combined with the skills of the pilots determine a successful or failed landing. It is obvious that we will have more crashes on narrow runways and when dealing with inexperienced pilots. Now we have a choice. We can decide that we for example align the left 3-sigma border with the Lower Specification Limit (LSL), and the right 3-sigma border with the Upper Specification Limit (USL).

This is equivalent to accept only those pilots who have consistently proven to be able to land within the borders 99.73% of the time. Alternatively, we could make sure that the runway is wide enough to land planes safely 99.73% of the time. The question now is: is this really good enough?

In reality, the above measure corresponding to 3-sigma, simply means that we are prepared to let 2.7 planes, out of 1,000 planes crash. This is of course not acceptable and therefore, the so-called Six Sigma criterion has been established.

Six Sigma

By definition, Six Sigma means that only in 3.4 cases per million a crash may occur. Although statistically not completely correct (as 3.4 cases per million correspond to 4.5-sigma rather than to 6-sigma), this metric has been established as an acceptable measure for designing boundaries and optimizing processes.

Six Sigma is all about influencing the process or designing the boundaries in such a way that the variation can be controlled within given specifications.

If we have a runway that is 80 meters wide, we will have to train our pilots and trim our planes in such a way that only 3.4 out of 1.000.000 landings would slip or crash. We can turn this around of course, in our runway example, if we know that from 1 million landings, 3.4 of them will land outside 80 meter, we will design the runway 80 meters wide.

During our training events, we will focus on practical examples and implementations taking the business objectives as the starting point. These are the given boundaries, we need to measure and find ways to ensure the Six Sigma criterion can be met by the process that is target of the optimization project.

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Change Management in multinational organisations is a critical success factor for the lean implementation

Intercultural Management.

We are all product of our environment in which we grew up and in which we make a daily living. In some cases, the way we see the world, or the way in which we make decisions is not the same as perceived in other cultures or countries.

For example, did you know that during a meeting with French managers hardly any decisions are made? For an English businessman, this may sound strange as the entire purpose of a meeting is getting actions ‘ticked off’…

If you were counting on a private meeting, a ‘one-on-one’, with a manager in Poland, don’t be surprised if at least 5 others will show up!

Although these are generalizations, I have been in situations where exactly these kind of misunderstandings led to frustration and threatened to become an inhibitor to communication.

Fortunately, this is not necessary by anticipating what can be expected when dealing with other countries and cultures.

Basic Concepts

A well-known study performed at IBM during the 70’s by Geert Hofstede over 70 countries yielded the so-called Cultural Dimensions that characterize each country and culture.

It is still used as a foundation to work with when studying the ways of management, communication, decision making and styles.

Cultural Dimensions

(Geert Hofstede)

Below the cultural dimensions with some examples. (Full overviews can be found by searching on-line for Geert Hofstede.)

Power Distance Index – PDI

To what extent do the members of the organization who have less power accept that power is unequally distributed?

Austria, Denmark —
India ++

Individualism – IDV

This is the level of integration of the individual into groups. Does the society (or organization) consist of individuals or is it a coherent group? High score indicates high level of individualism.

Netherlands, UK ++
China —

Masculinity – MAS

Masculinity versus Feminity indicates how different roles are distributed amongst men and women.

Masculinity can be associated with the level of assertiveness and competitiveness while Feminity represents values like caring for others.

Arab countries ++
Netherlands, Norway —

Uncertainty Avoidance Index – UAI

A measure to which extent uncertainty and ambiguity are tolerated in society. Can also be interpreted as to which extent the Truth is felt to be important in society. When the Truth is felt to be really important, we can expect strong laws, avoidance of insecurity or unusual situations, security measures and a relatively low tolerance for different opinions.

Belgium, Portugal ++

Long-Term Orientation – LTO

Principal values associated with Long-term are perseverance, thrift, while Short-term orientation can be recognized by respect for tradition, not losing face.

China ++
USA —

Having lived and worked for longer periods of time in other countries, I know that these type of categorizations can be ‘a bit dangerous’ when radically applied in daily situations. However, a large number of additional studies have been performed to refine and make practical use of the work of Mr. Hofstede that have helped cross borders for many business people operating globally.

 

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Was ist DMAIC?

DMAIC ist eine Methode, die man für sich entwickelt hat, mit Anlehnungen aus Plan Do Check Act, 8 Steps usw. DMAIC bezeichnet die 5 Phasen einer strukturierten Problemlösung.

So, wie jede andere Methode auch, bedient sich DMAIC aus einem Werkzeugkasten, der für die einzelnen Phasen unterschiedliche Werkzeuge bereitstellt. Alle diese Werkzeuge arbeiten nach dem Prinzip, eine Fragestellung oder Aufgabe beim Problemlösen zu strukturieren und eine Leitlinie vorzugeben.

  • Weder ergibt sich aus den Werkzeugen automatisch eine Lösung,
  • Noch sind diese Werkzeuge jedes für sich immer passend.

Die Kunst besteht darin, die geeigneten Werkzeuge auszuwählen und sie geeignet anzuwenden. Es ist den Erste Schritt in die Einordnung in die Entwicklung zu einer “Lean Organisation”.

  1. Verständnis von Lean und Führungsverhalten
  2. Standards und Planung
  3. Sichtbarmachen von Problemen
  4. Problem Lösung
  5. Kontinuierliche Verbesserung

Phasen:

  • DEFINE: Das Problem definieren
  • MEASURE: Die IST Situation erfassen
  • ANALYSE: Die Ursachen aufzeigen und Lösungsmöglichkeiten finden
  • IMPROVE: Die Lösungen zu einem neuen Standard entwickeln
  • CONTROL: Den neuen Standard einführen und den Erfolg überprüfen und weitere Verbesserungsmöglichkeiten finden
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Strukturiertes Problem Lösen mit DMAIC: Was ist das?

Strukturiertes Problem Lösen heisst im Wesentlichen:

  • mit einem klaren Auftrag
  • mit umfassendem Verständnis der aktuellen (Ist-)Situation
  • Ursachen für Probleme zu finden
  • Lösungen für die Ursachen zu finden
  • die Lösungen einzuführen

… und zu überprüfen, ob die erwartete Wirkung eingetroffen ist.

Mit anderen Worten: kein Feuerlöschen, kein Kurieren an den Symptomen, keine “Missions Impossible”! Bei vielen Organisationen wird dazu typischerweise die DMAIC-Methode verwendet.

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Kunden stehen auf Lean

Ja, dass stimmt; Die Ansprüche der Kunden auf prompte Lieferung, hohe Qualität und besten Preis werden weiter steigen. Um die Kosten niedrig und Erträge profitabel zu halten, darf erst dann produziert werden, wenn der genaue Bedarf gegeben oder zumindest höchstwahrscheinlich ist. Dann aber muss sofort geliefert werden, da Kunden ungeduldig sind.

Sofort mit hoher Qualität und geringen Kosten zu liefern gelingt aber nur, wenn die Abläufe und Operations so nahe wie möglich mit den Kunden verbunden sind. Und, hier sind ja auch kreative Lösungen möglich, wie die Integration der Kunden und deren Ideen in das Design; oder, Kunden können sich ihr eigenes Produkt konfigurieren.

Diese veralteten Praktiken müssen den modernen Ansätzen der Bedarfs-orientierten Produktion (Just-In-Time, JIT) weichen. Damit werden Investitionen in Produktion/Kapazitäten erst dann getätigt, wenn Kunden dies auch kaufen wollen – nicht auf Basis schöner Prognosen.  Denn: Produktion minus Verkauf = Schrott.

Ein Kernprinzip des Lean besteht im Respekt für alle Mitarbeiter, Lieferanten und Kunden. Wie zeigt sich dieser Respekt im Falle von schweren wirtschaftlichen Verwerfungen, die Kündigungen notwendig machen?

Das wegen bieten wir eine Lean Seminar für die Geschäftsführung (ca. ½  Tag)

Fachkundige und engagierte Führung ist für den Erfolg der Lean Initiative wesentlich. Ohne diese aktive Führung verläuft Lean Management im Sand, so wie andere gutgemeinte aber nicht diszipliniert umgesetzte Programme.

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Lean Six Sigma – waste and optimization

Waste and Six Sigma

Lean Six Sigma combines the knowledge of Six Sigma principles with reduction of so called waste. In many companies, people will explain you that there is a lot of ‘overhead’ in the process. People observe simply things being done that are duplication of work, that are superfluous or that are unnecessary. This is called waste.

By mapping out an existing IT or industrial process, it often becomes apparent that there are too many instances of this type of overhead.

Examples of waste

To mention a few examples, waste can be unnecessary transportation of goods or documents. If a document must be ‘checked’ or stamped by a manager before it can be released, the question can be asked if the process of creating and releasing a document should be revised. In many cases, the added value of the ‘Manager’ is negligible to the actual content of the document or process.

Storage of goods. If the process is not running smoothly, there is a constant need to keep things as reserve stock. Just-in-case instead of Just-in-Time one could say about this type of waste.

Keeping other people waiting is a huge waste of time for many. By aligning processes and information, this can be avoided.

Six Sigma approach

An important phase in the optimization according to Six Sigma principles occurs when investigating how processes can be optimized during the measurement and analysis phases. The so-called Process Mapping gives an initial overview of the ‘workflows’ and a first insight into the level of efficiency that has been applied. Where a lot of ‘parallel’ activities or ‘back-loops’ are visible that later all come together again in a single ‘node’, there is reason for concern. As it is unlikely that all tasks happening at the same time will end at the same time: result is in most cases a waiting time until all activities are finailzed.

Process mapping furthermore provides the foundation for:

  • Analysis of the performance w.r.t. requirements from Customer and Organization
  • Identification of bottlenecks
  • Simulation of improvements
  • Procedure standardization
  • Communication of roles and responsibilities
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Lean Six Sigma helpt werkmethoden doorlichten

Op de Maasvlakte-centrale ging vorig jaar een aantal zogeheten Lean Six Sigma-projecten van start. LSS staat voor een bepaalde methodiek die werkprocessen helpt te beheersen en te verbeteren. Meerdan veertig medewerkers zijn al, of worden nog, opgeleid in deze innovatieve denk-en werkwijze. ‘t Houdt eigenlijk in, dat processen aan de hand van een vaste methode heel gestructureerd worden doorgelicht. Rode draad: Define-Measure-Analyze-lmprove-Control.

Oftewel: Definieer-Meet-Analyseer-Verbeter-Controleer. Metdeze houvast kunnen medewerkers de efficientste manier vinden om tot een gewenst eindresultaat te komen.

Lean-Six-Sigma past volgens manager Operations Albert den Hartog dan ook uitstekend in E.ON’s streven naar verantwoord ondernemen. Albert: ‘Bij Corporate Responsibility wordt vaak gesproken over de baians tussen People, Planet, Profit – Mensen, Planeet, Winst. Omdat LSS zieh richt op de best mogelijke uitvoering van werkzaamheden, kun je je voorstellen dat een project dat bijvoorbeeld draa it om de afvalwaterzuivering, de milieuove rsch rijdingen tot nul terugbrengt.

Zoiets is niet alleen goed voor ons als werknemers, maar voor alle mensen. LSS-projecten zijn per definitie mult idisciplinair; oplossingen komen grotendeels van de werkvloer. Door te werken volgens LeanSix- Sigma krijgen we bovendien een methode in handen om oplossingen op een duidelijke manier te beargumenteren. Zodat we ook meer grip krijgen op de werkprocessen zelf. Daarom is CR-denken zo belangrijk in een organisatie.’

Get the full article …

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Europe has a great economy. Why do we need to worry about productivity?

Europe’s economy has experienced seemingly high productivity over the past decades, due largely to the massive capital investments in various sectors. However, the real issue is Europe’s productivity growth rate (how quickly we’re improving our productivity).

Over the recent years, Europe’s productivity has been lower then China’s and India’s productivity growth rate. Europe doesn’t fare any better when compared to countries around the world. As an economy, we start to lag behind, but on the macroeconomic level, Europe’s prospects remain very rosy, but from a microeconomic perspective our performance is of serious concern.

Compared to other developed economies, Europe has weakening labour productivity growth and sliding real income growth. Concerns about weak productivity growth will only intensify as structural changes in the global economy shift the engines of economic growth to China, India, and Brazil.

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Why is Europe performing so poorly in productivity growth?

Various factors have contributed to our poor productivity growth:

  • slow or no adoption of new processes and technologies to enhance efficiency
  • underinvestment in machinery, equipment, and technology
  • lack of innovation to enable the creation of new products and technologies
  • lagging workplace re-organization and worker training

The EU, in close partnership with industry and other levels of governments, is working on a strategic three-pronged approach to address the productivity growth challenges faced by Europe:

  • education and awareness of productivity
  • productivity enhancement tools
  • policies to promote and enhance productivity and innovation
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So, what is the EU doing to address the productivity gaps?

The EU, in close partnership with industry and other levels of governments, is working on a strategic three-pronged approach to address the productivity growth challenges faced by the EU:

  • education and awareness of productivity
  • productivity enhancement tools
  • policies to promote and enhance productivity and innovation
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