Page 64 - Lean six sigma demystified

Chapter 2 Lean Demy S tifie D 43

The Lean Process

The first step toward breakthrough improvements with Lean starts with reduc-
ing the time required to perform your mission critical processes. Analyzing
processes to eliminate delay and making them faster follows the FISH pro-
cess.
Focus. To focus the improvement effort on mission-critical business processes
and delays
Improve. To reduce non-value-added (NVA) delay, waste, and rework
Sustain. To stabilize and monitor the improvements
Honor. To recognize, reward, and refocus efforts

Core Ideas of Lean

The principles of Lean are pretty simple, whether you apply it to manufactur-
ing, service, or administration.

1. Determine value. What does the customer want (voice of the customer)?
Determining value, from the customer’s point of view, can be a challenge
for a number of reasons.
• Value is an effect of doing things right. The effects of improving speed,
quality, and cost leads to higher customer satisfaction, retention, and
referrals. All of which lead to growth and profitability.

• What has value in one situation may not have value in another. If I want

a product or service delivered on a Friday, it doesn’t matter to me if you
can deliver it on any of the weekdays before Friday. (Voice of the cus-
tomer: I want it when I want it, not when you can deliver it.)
2. Use pull systems. To avoid overproduction. Big inventories of raw materials
or finished goods hide problems and inefficiencies. Ohno says “Efficiency
is never a function of quantity and speed.”
3. Institute one-piece flow. Make the work flow, so that there are no interrup-
tions, wasted time, or materials using small lot sizes and quick changeover.
4. Level out the workload. (Hejunka) To the rate of customer demand or pull.
5. Stop and fix problems. Immediately to get quality right the first time.