lean six sigma demystified webinar

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L E A N S I X S I G M A D E M Y S T I F I E D

A Services PerspectiveF a b r i z i o P e l l i z z e t t i

L E A N S I X S I G M A D E M Y S T I F I E D W E B I N A R

Q & A R E S O U R C E S FOLLOW US S U R V E Y

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Introduction

Fabr iz io Pe l l i zzet t i

Master Black Belt - Lean Six Sigma

• 15 years in Change Management, Process

Improvement, Lean Six Sigma for Services and IT

• Consultancy, training and strategic advice on

transformation programs to global organisations, public

institutions and technology start-ups

• Speaker at International Conferences

• A passion for Continuous Improvement, Innovation and

Organisational Learning


Agenda & Objectives

• Understand what is Lean Six Sigma (LSS)

• The evolution of the methodology

• Dispel some myths surrounding LSS & clarify

real challenges

• Lean Six Sigma Applicability - Services & IT

• Questions & Answers


S E C T I O N 1

W h a t i s L e a n S i x S i g m a ?


5. Problem Solving

What is Six Sigma?

1. Metric & Benchmark 3. Tools & Methods

4. Management

Philosophy

6. Change

Management

2. Organisation


Brief History of Lean

• Redesign processes to achieve Just in Time & Total

Quality Control

• “Lean” term introduced in the 1990’s

• Main Goal: remove all forms of waste

Toyota Production System

Motion

Over-production

Defects

Transport

Motion

Stock

Non-usedtalent

Over-processing

Waiting


Lean Six Sigma – 2 complementary approaches

Lean Six Sigma is a blend of two powerful

process improvement methods

Six Sigma• Focus on Defects reduction

& problems of variation

• Comprehensive toolkit for

Data Driven Problem

Solving

• Continuous improvement

culture (dedicated

infrastructure)

• Maximise process

velocity, minimise all

forms of waste

• Rich toolkit for analyzing

Process Flow & Delays

• Remove all NON value

add activities from the

process

Lean


Two approaches to Process Improvement…

B e s t p r a c t i c e d r i v e n Improvement “by the book”

P r o b l e m d r i v e n Improvement “by experiment”

Other organisations

have tried this solution

and it worked.

Believe me!

We don’t know the

right solution, until we

define the problem

and understand its

root causes.

I N S U M M A R Y


Process Problems

A c t i v i t y

A c t i v i t y

People

Material

Equipment

Policies

Procedures

Methods

Environment

Product

Service

Other results

Randomness

.

.

.

We need to understand the relationship

between inputs and output and identify

the critical x’s (root causes)

Our problems are

related to processes


Process

fragmentation

No Scalability Defects

Delays

Decrease of

Value

Waste

Missed Targets

and SLA’s

Dissatisfied

customers

Failed Projects

Wrong

Decisions

Symptoms of process problems


So what is Effective Problem Solving?

Learning & Discovery

+Asking the Right Questions

+A common Framework

We cannot solve our problems

with the same thinking we used

when we created them.

Albert Einstein


DMAIC – Problem Solving framework

Prob lem So lv ing i s abou t Learn ing

and Knowledge Acqu is i t ion

Define the

Problem

D E F I N E

?

Baseline the

Process

M E A S U R E

Find Root

Causes

A N A L Y S E

Pilot the

Change

I M P R O V E

Sustain

Improvement

C O N T R O L

Learning is not compulsory…

neither is survival.

W. Edwards Deming


Different Levels of process

META PROCESSES & QUALITY MODELS

Macro Processes & Life Cycle Models

REQ DES DEV TEST Support

P r o j e c t & R i s k M a n a g e m e n t

V e r i f i c a t i o n & V a l i d a t i o n

Support

Incident

Management

Micro

Processes


DMAIC – Problem Solving tools

VOP Collect Data Data Pilot

VOC

Problem &

Cost

Model

Baseline

Process

Root Causes

Generate Ideas

Drive Change

Process Controls

Sustain

Continuous Improvement

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8

7

6

5

4

3

2

1

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Time_to_Close_(hours)

Fre

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Histogram of Time_to_Close_(hours)

D E F I N E

?M E A S U R E A N A L Y S E I M P R O V E C O N T R O L


Lean Six Sigma EvolutionA

BS

TR

AC

TI

ON

S E R V I C E S

• Ambiguous VOC

• People & Variation

• Communication

• “Information Driven”

S O F T W A R E & I T

• Fuzzy specifications

• Social Engineering

• Communication

• “Model Driven”

• Clear VOC

• Repeatable Process

• Standard Output

• “Product Driven”

M A N U F A C T U R I N G


Manufacturing vs. Services

M A N U F A C T U R I N G S E R V I C E S

• The VOC – clear, measurable, specific

requirements (physical attributes)

• The Process – standard, repeatable,

product driven

• The Variation – physical product

variability

• Defects & Cost – defects linked to

Output variation, Cost of poor quality

usually known

• Process Waste – TIMWOOD

• Measurement – easy to get; process

yields its own measures

• Importance of Projects – LOW, the

process is mostly a continuous flow

• The VOC – ambiguous, emotional,

qualitative, misunderstood requirements

• The Process – non-standard, flexible,

information driven

• The Variation – humans and

communication

• Defects & Cost – communication defects,

Cost of poor quality often unknown

• Process Waste – failure to learn, poor

decision making, ambiguity and rework

• Measurement – requires conceptual

modelling, subjective measures

• Importance of Projects – MAJOR,

service industry is in constant “project

mode”


Services Continuum

I N T E R A C T I O N

REPEA

TA

BILITY

Each task

is the same

Each task is different

Each task is unique

Problems of Variation

Traditional LSS focus

Problems of Communication

LSS for Services focus


M y t h s & R e a l i t i e s

S E C T I O N 2

L e a n S i x S i g m a


…some are more equal

than others. Services and

IT Processes are different

and so should be the

approach used to apply

Lean Six Sigma;

adaptation is key!

Myth Number 1

All Processes are Equal…

M Y T H

Processes are all equal…

They are made of

activities, inputs and

outputs. LSS methods can

be applied to any

process; no adaptation

required!

R E A L I T Y


Myth Number 2

Measurement and

statistics are just tools.

Data and facts are used to

support Problem Solving

and Decision Making.

Variation in the world of

services is different (the

human factor).

Six Sigma is all about measurement

and statistics

M Y T H

As the name suggests, the

main focus of this method

is measuring and reducing

process variation.

Variation is, after all, the

enemy of quality.

R E A L I T Y


Myth Number 3

When processes are

performed by people and

driven by information,

measures tend to become

more subjective.

A combination of qualitative

and quantitative data is

required. Beware of the

impacts of measurement on

the behaviour of people.

Services and IT processes cannot

really be measured

M Y T H

Meaningful & reliable

process measurement

requires quantitative and

objective data.

Service processes simply do

not produce that type of

measures.

R E A L I T Y


Myth Number 4

The right framework

provides a structured

method for problem solving

applicable also to non

standardised activities

(e.g. Project Management,

Order to Cash, incident

management).

Lean & Six Sigma are not applicable to services

and IT Processes

M Y T H

Lean & Six Sigma are

designed exclusively for

repetitive and

standardised operations

(including transactional

aspects of services), not

for information driven

processes.

R E A L I T Y


Core & Supporting/Enabling Processes

T E L E P H O N Y & I S P

Human Resources Procurement IT Support

Inventory Management

P r o b l e m s a r e f o u n d a t b o t h l e ve l s o f p r o c e s s

SUPPORTING

PROCESSES

Deliver Broadband to customer

Install Equipment & activate service

Switch User from another provider

CORE

PROCESSES


SERVICE PROVISION

Poor quality (defects) long cycle time,

cost and waste

BILLING

Wrong invoices, late payments, delays in

cash collection

Some INDUSTRY Examples

Healthcare (patient referral process)

P R O B L E M / P A I N

Telecom (incorrect customer invoices)

INCIDENT MANAGEMENT

Breach of SLA, wrong fixes, long time to

restore service, user dissatisfaction

PROJECT MANAGEMENT

Missed deadlines, unsatisfied customers,

high costs, too many change requests

P R O C E S S A R E A

E X A M P L E

P R O C E S S A R E A

E X A M P L E

IT (tickets management process) Client Projects (also improvement projects)

P R O B L E M / P A I N


The Lean Six Sigma “spirit”

K E Y W O R D S

LSS: a problem solving method

• Pragmatic: Focus on the Business Case

• Experimental: Rejects pre-defined solutions

• Facts & Data: To support decision making

• Different “types of thinking”


Inspired from Martial Arts

Clear Roles

Shared Vision

Lean Six Sigma profiles

MASTER BLACK BELTS

Full time Experts

Strategic Advisors

E X E C U T I V E S

Strategic Vision

Programme Sponsors

Y E L L O W B E LT S

Project Specific

Subject Matter Experts

G R E E N B E LT S

20-50% Dedicated to LSS

Project Leaders

C H A M P I O N S

Project Sponsor

Help to identify Projects

BLACK BELTS

50-100% dedicated to LSS

train, coach, lead projects


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