LUNCH & LEARN BUSINESS IMPROVEMENT METHODOLOGIES

UNDERSTANDING LEAN PRACTICES& SIX SIGMA

WHAT IS LEAN SIX SIGMA?

• Lean Manufacturing1) Developed by Toyota 2) Removal of waste from a value

streamWaste: Anything that takes up customer resources and does not add value to customerValue Stream: Steps taken to deliver value

• Six Sigma (6 Sigma)1) Made famous by companies

Motorola and GE2) Level of performance only 3.4

defects are produced per million opportunities

Quality of Improvement: Reduction of variation in process

LEVELS OF LEAN SIX SIGMA1. Master-Black Black Belt

2. Black Belt

3. Green-Belt

4. Yellow Belt

5. White Belt

5 PRINCIPLES OF LEAN6. Value - What are you customers willing to pay for?7. Value Stream - What are the steps followed to deliver value?8. Flow - Organizing the value stream to be continuous9. Pull - Responding to downstream customer demand10. Perfection - Continue Improvement

DMAIC MODEL OF SIX SIGMA(Define, Measure, Analyze, Improve, Control)

• Create problem statement

• Data collection

• Establish a baseline

• Understanding process and correcting variables

• Level of performance is expected and to prevent regression

HOW WAS IT USED & EVALUATEDScenario

Office and kitchenette supply budget problems• Supplies were only accessible

twice a week for 30 min each time• Order form required for everything• Kitchenette supplies expired and

missing• No process in place for ordering

and monitoring department budget for those supplies

PROJECT CONCLUSION

• Cage option removed: $ 3,945• Cabinets designated on all 6 floors now designated for supplies• Each floor now has a supply monitor • Reduction of 117 hours staff wait time: $11, 464.00 • Elimination of supply form, standard office supplies are in supply cabinets• Procurement cost reduced: $ 43,427• Reduction of inventory: $ 15,490• Implemented standard procedure for office supplies, monitor cost• Annual Saving to Department $ 70,381