Create a LEANer organization with Work-Out & Six Sigma

JWI 555 Organizational Change & Culture, week7 notes (continued), 5/25/13

Analysis by columns below shows Work Out and Six Sigma techniques can be combined to make a LEANer organization.

Dr DP

Criteria	Work-Out	Six Sigma	LEAN
1.Purpose	Give everyone a voice and bring every brain in the game to eliminate unncessary bureaucracy and promote good ideas	Reduce defects and drive down variation in products, services and customer experience	Eliminate Waste from supply chain
2.Frequency & Cost	An event that may be held at most a few times in an organization; Relatively inexpensive to conduct	An ongoing daily process - a way of life in the organization; expensive and time-consuming	way of life
3. Core values	candor, self-confidence, simplicity, speed	variation is evil; excel in production	variation is evil; excel in production
4.Leadership improvement	Leaders who can act in a transparent way, engage in real-time public discussion and decision making	analytical sophistication, common enterprise-wide approach to problems, fact-based data-driven decision making, commit to continuous improvement	analytical sophistication, common enterprise-wide approach to problems, fact-based data-driven decision making, commit to continuous improvement
5. Type of Problems to Attack	Organizational & Cultural issues - people issues in particular; promote latent ideas with potential	Repetitive processes where variation creates errors, defects, excess costs - process improvement in manufacturing, product design, HR, sales, services	All kinds - people, organizational, technical
6. Implementation	Planning, Teamwork, TownHall, Implement	DMAIC	Kano model - Dissatisfiers, Satisfiers, Delighters (especially important in service industry); PDCA - Plan, Do, Check, Adjust; Six Sigma DMAIC - Design, Measure, Analyze, Improve, Control ( with seven tools: check sheets, scatter diagrams, Fishbone cause and effect diagrams, pareto charts, flow charts, histograms, SPC); VSM - Value Stream Map to optimize business process; SIPOC - Suppliers, Inputs, Process, Output, Customer to enable business process transformation from status quo to desired state; 5S LEAN - identify all types of waste and get rid of them by sorting, straightening, shining, standardizing, sustaining; FMEA - Failure Mode and Effects Analysis; 8D - Eight disciplines of Structured Problem Solving (Prepare and Plan, Form Team, Problem statement, containment action, root cause analysis, Fix, Implement & validate, prevention, celebrate); Benchmarking - against best in class competition ; Kai Zen - Continuous improvement every day; Fool proofing - technique that prevents errors; Datamining - correlations; paretos; 4Ms for causes - Material, Machinery, Manpower, Methods; SPC - Statistical process control; Cpk control charts Source Inspection - to monitor and control the cause of variation
6. End Result	Organizational culture focused on candor, self-confidence, simplicity, speed	99.99967% parts defect free (only 3.4 defects per million), Improved operational efficiency, higher productivity, lower costs, Improved design processes, get products to market faster, build customer loyalty	Low cost leadership; an organization built to survive tough economic conditions
NET			LEAN = Work-Out + Six Sigma

Dr DP