Process improvement using lean - six sigma - service industry - analyse phase

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Optimise-GB presents the analyse phase for the Six Sigma's DMAIC methodology. This presentation takes you through the issues and inefficiencies within a process and how you can analyse the root cause (symptom) and the relationships between each issue that you find. The analyse phase is also a good way to look at the 7 wastes in a process in accordance with the lean methodology. Please feel free to contact me with feedback or questions on simon@optimise-gb.com. Many thanks Simon Misiewicz

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Process improvement using lean - six sigma - service industry - analyse phase

  1. 1. Lean, Six Sigma and ToC DMAIC Process Improvement - Analyse Phase Optimise -GB
  2. 2. Knowledge base Lean: is centred around creating more value with less work by removing waste and increasing efficiencies in business processes. Six Sigma: seeks to improve the quality of process outputs by identifying and removing the causes of defects (errors) to achieve cost reduction or profit increase and customer satisfaction Optimise -GB
  3. 3. Knowledge base Theory of Constraints (TOC ) is an overall management philosophy introduced by Dr. Eliyahu M. Goldratt and is geared to help organisations achieve their objectives. Any manageable system is limited by a small number of constraints. Optimise -GB
  4. 4. Six Sigma Process Improvement methodology Optimise -GB
  5. 5. <ul><li>What is the business mission statement? </li></ul><ul><li>Who are your customers? What is your products / Services? </li></ul><ul><li>What is the state of your business right now in terms of sales, cost, quality, customer satisfaction, market share? </li></ul><ul><li>What are your strengths, weaknesses, opportunities and threats? </li></ul><ul><li>Where do you want the business to be in the future? </li></ul>Before we continue ask yourself the following questions: Optimise -GB
  6. 6. Six Sigma Analyse Pinpoint and verify causes of process inefficiencies and identify value added and non-value added activities Determine process capability and speed Look beneath the surface; let not the several quality of a thing nor its worth escape thee – Marcus Aurelius Antoninus Optimise -GB D M A I C
  7. 7. Six Sigma Prioritisation of focus: Quality If your focus is on quality a Pareto chart will help to prioritise your improvement focus. In this case Taking goods from shelves and taking orders has the larges defects. Optimise -GB Process Defects Take goods from shelf 5% Take order 5% Package goods and invoice 4% Produce Invoice 1% D M A I C
  8. 8. Six Sigma From the Pareto chart the area of focus for quality would be “Take Orders” and Take goods from shelf” as these have 5% defects You will now need to understand why!! Optimise -GB D M A I C Process Give order Take goods from shelf Produce and print invoice Box goods / invoice
  9. 9. Six Sigma Why are there errors in taking goods from the shelf <ul><li>Why? </li></ul><ul><li>Answer: Person mi-read the order </li></ul>2. Why? Answer: The writing is hard to read 3. Why? Answer: The person writing it was in a rush 4. Why? Answer: Because their workload was too much Etc etc Optimise -GB Invoice paid twice D M A I C
  10. 10. Six Sigma Use Cause and Effect Trees to get the root cause of the problem Optimise -GB D M A I C Take goods from shelf Writing on form mis-read Writing of poor quality Person was in a rush Writing was smudged Felt tips are used Too much workload Person is carless Paper is greasy No pens in the office No other supplies Lack of training
  11. 11. Six Sigma Use Cause and Effect Trees to get the root cause of the problem Optimise -GB D M A I C Take order from customer Wrong order taken Could not hear customer Phone telephone systems Customer quotes wrong code Code obsolete Poor telephone reception Customer spoke too quietly Used old catalogue Product obsolete
  12. 12. Six Sigma Use Relationship models to understand interaction of problems The problems with the most outbound issues are targets for improvement Optimise -GB D M A I C Customer spoke too quietly Product obsolete Too much workload No pens in the office No other supplies Lack of training Poor telephone reception
  13. 13. Six Sigma Measure costs, time for Process Waste Optimise -GB Waste category Office examples 1. Overproducing Printing / working on paperwork before it is needed 2. Inventory Filed in boxes, office supplies, batch processing 3. Waiting System downtime, managers approval, information from others 4. Extra processing Re-entering data, extra copies, excessive reports, budget process, scanning 5. Correction Data entry, design, invoice errors 6. Excess motion Walking to and from printers, other offices, filing 7. Transportation Excessive email attachments, multiple hand offs, approvals, postal services, internal post 8. Under utilised people Limited employee authority, excessive management control D M A I C
  14. 14. Six Sigma List all root causes and wastes – Issues with High risk defect / waste levels are targets for improvement Optimise -GB Risk / defect / waste Impact Impact M / M / L Probability H / M / L Risk / Defect / Waste Level Poor quality of goods from the supplier Cannot sell goods, use less quality products H M M Lack of training in customer service and procurement Quality of staff output decreased H H H No pens in the office Writing smudged and wrong orders picked H M H D M A I C
  15. 15. <ul><ul><li>For other solutions </li></ul></ul><ul><ul><li>Contact </li></ul></ul><ul><ul><li>Simon Misiewicz through </li></ul></ul><ul><ul><li>Web: www.optimise-gb.com </li></ul></ul><ul><ul><li>Email: [email_address] or </li></ul></ul>Optimise- GB

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