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Lean Six Sigma applies Takt Time and Line Balancing

By on March 4, 2012 in Lean Six Sigma, Uncategorized
Takt Time is the principle that all activity within a business is synchronised by a “drum beat”, set by the customer demand. This brings ‘calendar time’ into the equation.
Notice how neatly Takt time links with line balancing. You set the capacity of each process step to the demand of the customer.

Linking the internal value adding system directly to the customer may seem difficult but is necessary to allow the customer to pull value from the value adding system.

Each process link working in isolation at full speed will cause a mismatch between links. Some areas over-produce, some cannot keep up…

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In the Lean Six Sigma methodology is Level Scheduling an important concept.

By on March 2, 2012 in Lean Six Sigma, Uncategorized

In the Lean Six Sigma methodology is Level Scheduling an important concept;

‘ The process of smoothing production volume and model mix over a given time period.’

This major component of the Lean philosophy is to smooth out the flow of value so that minimal waste inventory and waiting are incurred. To be able to provide a smooth flow when many product types are produced on the same lines it is necessary to even out the schedule, so Level Scheduling is often used. Benefits to be gained from employing level scheduling include; reduces inventory of raw materials, reduced quantity of finished goods and reduced lead times.

Not only the scheduling will do the job, with Lean Six Sigma, it will also require implementing other process improvements, e.i.;

• replacing the existing order entry process with an online system

• cross-training engineering / operations
• automating the BOM
• standardising parts where possible to allow suppliers to build-to-stock
• developing blanket orders to reduce the work involved in the purchasing
• initiating purchasing in parallel with the customer approval process
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Standard Work and Multi-skilling during Lean Six Sigma

By on February 27, 2012 in Lean Six Sigma, Uncategorized

Standard Work and Multi-skilling during Lean Six Sigma is also important;

  • Value adding steps are broken down into standard work ‘packages’.
  • Standard Operating procedures are written for each package.
  • A skill matrix for a team can then be produced by showing team members vs. work packages that the team need to perform.
  • The skill matrix naturally leads to thinking about training to develop people and fill gaps in team capabilities.

This helps

  • Achieve CONSISTENCY in operations (reduce variation) which leads to robustness and better flow.
  • Process Management.
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lean six sigma and Parallel Processing

By on February 27, 2012 in Lean Six Sigma, Uncategorized

To save Lead time (calendar time) we can, through Lean Six Sigma or Lean engineering the process steps that are currently being completed in series.

Another possibility is to take out some process steps from the series and do them in parallel to other process steps.

This is often called concurrent engineering; the idea being that you can design the different parts of a product at the same time. Unless concurrent or parallel processing is carefully planned and coordinated, it results in chaos.

Two things are required for Parallel processing:

  • The customer (or the business) would value the reduction in lead time
  • Only process steps which are independent of each other can be done in parallel
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Lean for Production and Services

By on February 23, 2012 in Lean Six Sigma, Lean Six Sigma @de, Uncategorized

A popular misconception is that lean is suited only for manufacturing. Not true. Lean applies in every business and every process. It is not a tactic or a cost reduction program, but a way of thinking and acting for an entire organization.

The core idea is to maximize customer value while minimizing waste. Simply, lean means creating more value for customers with fewer resources.

A lean organization understands customer value and focuses its key processes to continuously increase it. The ultimate goal is to provide perfect value to the customer through a perfect value creation process that has zero waste.

To accomplish this, lean thinking changes the focus of management from optimizing separate technologies, assets, and vertical departments to optimizing the flow of products and services through entire value streams that flow horizontally across technologies, assets, and departments to customers.

Eliminating waste along entire value streams, instead of at isolated points, creates processes that need less human effort, less space, less capital, and less time to make products and services at far less costs and with much fewer defects, compared with traditional business systems. Companies are able to respond to changing customer desires with high variety, high quality, low cost, and with very fast throughput times. Also, information management becomes much simpler and more accurate.

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The word is, lean transformation !

By on February 22, 2012 in Lean Six Sigma, Lean Six Sigma @de, Uncategorized

Businesses in all industries and services, including healthcare and governments, are using lean principles as the way they think and do. Many organizations choose not to use the word lean, but to label what they do as their own system, such as the Toyota Production System or the Danaher Business System. Why? To drive home the point that lean is not a program or short term cost reduction program, but the way the company operates. The word transformation or lean transformation is often used to characterize a company moving from an old way of thinking to lean thinking. It requires a complete transformation on how a company conducts business. This takes a long-term perspective and perseverance. A client of PEEC doing just that, it’s the new word! lean transformation.

Lean for Production and Services A popular misconception is that lean is suited only for manufacturing. Not true. Lean applies in every business and every process. It is not a tactic or a cost reduction program, but a way of thinking and acting for an entire organization.

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Translating Customer Needs into Key Process Measures

By on February 6, 2012 in Lean Six Sigma, Lean Six Sigma @de, Uncategorized

Listening to the Voice of the Customer.

Do we really know the answer to these questions?

  1. How does the customer view my process?
  2. When it starts for them?
  3. When it is finished?
  4. What is the customer looking for when measuring the performance of my process ?
  5. How well does my process meet the customer’s expectation of what constitutes value ‘in their eyes’?

We must first understand who the Customer actually is.  We should then define how to listen to the Customer when he is expressing his opinions about the quality of our products or services.  There may already be an established process within your business to extract this valuable information on an ongoing basis (Market Research), however, it may also be the case that the business does not capture such information in a coherent and usable format.  This is often the case with internal customers.  Therefore, specific techniques and deeper analysis is required to understand what the customers requirements for the process output actually are.

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Lean Six Sigma training is focused around 3 core elements

By on January 10, 2012 in Lean Six Sigma, Lean Six Sigma @de, Uncategorized
The Black Belt – Lean Six Sigma  programme contributes toward your companies strategic vision.
  • The Lean Six Sigma deployment structure involves all layers of the organisation, Champions, Sponsors, Black Belts, Green & Yellow Belts.
  • The Black Belt training provides a significant Return On Investment by ensuring that attendees deliver real improvement in the organisation
  • The  improvement methodology, DMAIC, is a holistic approach that encompasses the best practices of  Lean (waste) & Six Sigma (variation) techniques
The training is focused around 3 core elements:
  1. Technical problem solving
  2. Project management
  3. Change management
We define Change Management as the processes to take into account all human and social aspects of the change from the launch of the project to its end…
  • It ensures the adequate involvement of the people concerned in the definition, communication and implementation of the new solution to secure “Buy-in”.
  • It covers a range of activities tightly embedded with Project Management activities.
  • Listen to the people concerned and continually communicate.
Change Management in a Lean Six Sigma improvement project is about gathering the critical mass to make the change irresistible by creating a shared need for change
  • Find and leverage the best allies
  • Removing any barriers blocking or slowing down the change
  • Coping with resistances to change

The Black Belt training will focus strongly on Change Management Skills

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

By on January 7, 2012 in Lean Six Sigma, Lean Six Sigma @de, Uncategorized

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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