In 2011, Los Angeles County’s Registrar-Recorder/County Clerk, Dean C. Logan, had a vision of his department becoming a leader in customer service. He chose to use the methodology of Lean Six Sigma to help make that… (Read More)
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QUESTION:If we were to eliminate Wastes in any form, how would we be able to convert the waste into dollar value in order to convince a Bank to start adopting Lean?
The calculation you’re looking for is COPQ or Cost of Poor Quality.
The idea is to calculate the labor hours saved by removing waste and then multiply them by the average loaded salary of the process participants impacted.
In the case where Defects cause the process to “scrap” products, you can calculate the lost value of goods. You can also look at the removal of waste as an increase in capacity. That would involve calculating how many more customer transactions could be completed with the time made available by the removal of waste. In each case you are calculating the impact of the Waste.
Aside from labor hours and scrap materials, you can also calculate cost avoidance when reducing the waste of transportation – less transport costs. It depends on the waste, but this gives you some general guidelines around converting waste into dollar value.
QUESTION:In Six Sigma, Y = f(X), what does X stands for?
This formula is especially relevant to determining cause and effect as well as measuring for improvement. It reads Y is a function of X. The Y is the effect of the problem or desired improvement and the X’s are the possible causes or areas affecting improvement.
For example, Y= total time for an output to go through the process and possible X’s are the time for each process step, wait time for delays, or volume going through the process at a peak time. Each of the X’s can be measured to understand their impact on the Y.
Selecting the X’s that have the strongest relationship to an improvement in Y are the root causes to be addressed in a solution.
QUESTION:What Wastes could exist in a Shipping Department?
All sorts of Wastes could exist in a Shipping Department. Here are a few examples:
- Unnecessary transportation of products
- Unnecessary motion of people
- Unnecessary waiting (waiting to pack and/or ship, or customers waiting)
- Unnecessary inventory (any excess inventory creates LOTS of waste: counting it, moving it, organizing it, damaging it (causing defects). Unnecessary inventory means there is overproduction and over processing.)
- Unnecessary use of equipment (like packing machines) and supplies (paper).
QUESTION:Can Lean Six Sigma be applied in the software industry? What are the wastes?
There’s waste in every industry, including the software industry. Depending on the department the waste would take different forms.
- Defects could either be bugs in the actual software, not developing the features requested by the customer, or shipping the wrong products at the end of the process;
- Overproduction could refer to shipping too much product in advance of demand;
- Waiting can happen in development or shipping;
- Non-Utilized Talent could refer to junior developers whoa are not trained in higher-level tools;
- Transportation refers to the number of times developers pass software back and forth to be edited, or the shipping of products to distribution centers;
- Inventory could be the build up requests for products;
- Motion might refer to the number of screens, applications and websites that staff have to click or open repeatedly and, finally,
- Excess Processing could apply to developing features that no one uses.
Programming teams have made great use of a Lean method of process improvement called “Agile” which has been customized to enable software teams to conduct rapid feedback and rollout cycles. To learn more about “The 8 Wastes” – check out our Free Yellow Belt Training.
QUESTION:What should be captured in a SIPOC?
I am working on a SIPOC diagram for an urgent care facility. The test facility is the Supplier. I can’t figure out the Input, but the Output was provided which is Diagnosis and the Customer is the Doctor and Patient. I was thinking the test itself would be the Input. Please help.
In determining what to capture in a SIPOC, I find it is frequently helpful to identify the start and stop of the process up front. I find that when people do this, they frequently find it easier to identify the specific outputs and inputs that they need to capture. If, in your example you want to frame the process you are mapping as starting with the receipt of the test from the testing facility, I would agree that the test results are the input.
If you are mapping the overall treatment of a patient at the facility, test results are one of many potential inputs to the process.
QUESTION:Do you have to go through your organization to get Lean Six Sigma training?
You definitely do not have to go through your current employer to get training. There are many organizations that provide Lean Six Sigma training including GoLeanSixSigma.com. Courses typically range in depth, but it’s always best to go through a workshop with examples to practically apply the tools can concepts.
Although it is not necessary to go through your employer to access training, one of the benefits of getting the training through an employer is that they may reimburse you for costs or pay for your training. There are many public courses offered online and live. Costs vary by provider and location.
As of April 14, 2014, LinkedIn has removed their Product Recommendation feature which contained some of our Lean Six Sigma Yellow Belt Training Recommendations. We felt that you may find them valuable, so we saved them… (Read More)
As we approach the release of our Green Belt Training & Certification on April 1, we thought you’d be interested in some screen shots of the course. As you’ll see below, it’s quite similar in look… (Read More)
GoLeanSixSigma.com’s FREE Online Yellow Belt Training is here! If you’ve already subscribed to GoLeanSixSigma.com, you should have received an email with a link to access the free Yellow Belt Training. If you haven’t yet, you can… (Read More)