Module 1 Slides

1. Lean Six Sigma Yellow Belt Certification Program
For the Service Industry

2. Why This Training is Important

3. Changing Tactics
“The significant problems we
face cannot be solved at the
same level of thinking we
were at when we created
them.”
- Albert Einstein
http://commons.wikimedia.org/wiki/File:Einstein_1921_portrait2.jpg

4. Ask Yourself
• Do you have a:
• Passion for making things better
• Desire to learn this material
• Desire to put what you learn to use
• A commitment to get results

5. Improvement/Service Culture
Additional information here

6. What is Improvement
Culture?

7. Improvement/Service Culture Characteristics
• The customer is a key focus
• Customers receive value from services
• Effort made to make customer interactions pleasant and
positive
• Obstacles removed from customer’s paths
• Improvement methods are applied

8. Improvement Methodologies
Additional information here

9. Improvement Systems
Focus Approach Improve By Methodology
Total Quality
Management
Continuous
improvement.
No specific methodology.
Make everyone aware of
and responsible for
quality in all aspects of
the organization.
Reducing errors.
• Plan.
• Do.
• Check.
• Act.
Theory of
Constraints
Manage
constraints in
the process.
Subjugate the entire
process to the
constraints, maximize
the capacity of the
constraints, and work to
eliminate them.
Increasing
throughput.
• Identify constraints.
• Exploit the
constraints.
• Subordinate
process steps.
• Elevate constraints.
• Repeat cycle.

10. Improvement Systems
Focus Approach Improve By Methodology
Lean
Maximize value
and speed in a
process.
Remove waste, reduce
complexity and
streamline the process.
Adding value
throughout the
process.
• Identify value.
• Map value stream.
• Flow.
• Pull.
• Seek Perfection.
Six Sigma
Perfection to
achieve a
performance of
3.4 DPMO.
Reduce variation and
center the process on a
target to maximize
process capability.
Identifying and
eliminating defects.
• Define.
• Measure.
• Analyze.
• Improve.
• Control.

11. DMAIC Methodology
Additional information here

12. DMAIC Methodology
Define
Measure
Analyze
Improve
Control

13. DMAIC Methodology
Define: Define the process and the problem
Measure
Analyze
Improve
Control

14. DMAIC Methodology
Define
Measure: Measure the current performance
Analyze
Improve
Control

15. DMAIC Methodology
Define
Measure
Analyze: Analyze the process for root causes
Improve
Control

16. DMAIC Methodology
Define
Measure
Analyze
Improve: Determine and implement improvements
Control

17. DMAIC Methodology
Define
Measure
Analyze
Improve
Control: Maintain the improved process

18. PDCA Methodology
Additional information here

19. PDCA Methodology
Plan:
Identify problems or improvements
you wish to address. Develop
ideas/projects to resolve and/or affect
improvement.

20. PDCA Methodology
Do:
Test the ideas/projects, preferably on
a small scale.

21. PDCA Methodology
Check:
Study the results; does what was
predicted (expected) = what was
observed?

22. PDCA Methodology
Act:
Implement the ideas/projects to effect
the desired change.

23. Continuous vs. Breakthrough
Improvement
Additional information here

24. Continuous Improvement

25. Continuous Improvement
• Continuous Process Improvement
• Takes a long time to make thorough improvements
• Customers are not willing to wait while the organization gets things
right
• Can be taxing on organizational staff
• Change may not be visible

26. Breakthrough Improvement

27. Breakthrough Improvement
• Breakthrough Approach
• Achieve the same amount of improvement in a much shorter time
• Better opportunity to retain customers
• Less opportunity to waste resources
• Energizing to the organization and staff
• Can see positive change

28. Your Customers
Additional information here

29. Who Are Your Customers
• Delivering effective services requires you to know:
• Who your customers are
• What they want from you
• What level of service they expect from you

30. Internal vs. External Customers
• External customers
• People outside of your organization who receive the benefit(s) of
the services you provide.
• Who are your external customers?

31. Internal vs. External Customers
• External customers
• People who want to purchase your services or products
• Vendors / suppliers
• Governing bodies
• Business partners
• Other organizations

32. Internal vs. External Customers
• Internal customers
• People inside or closely aligned to your organization whom you
work with or provide services to. The result of your combined
efforts provide services / products to external customers.
• Who are your internal customers?

33. Internal vs. External Customers
• Internal customers
• Co-workers
• Your leadership or boss
• Staff from other departments
• Administration

34. Defining Customer Service
Additional information here

35. Lifting The Customer’s Burden
• Not asking the customer do any
unnecessary work to satisfy their
own needs
• Taking responsibility for responding
to the customer’s requests and
questions
• Taking responsibility for meeting
the customer’s needs and wants
• Taking responsibility for the
outcome of the interaction and
situation (experience)

36. The Face Of The Organization
• Staff are the face and voice of the
organization to the customers and
partners with whom we interact.

37. Organizational Awareness
Additional information here

38. An organization consists of
people working together to
provide a service or product.

39. Key Questions
• What is it that you do?
• How well do you do what you do?
• Can you prove your standard of performance by reliable,
relevant data from customers and operations?
• Do you know where your gaps are, and how large they
are?
• Do you have a methodology to narrow the gaps
consistently and maintain this level of performance?
Courtesy of The Filardo Group

40. Changing Our Beliefs
Current Beliefs
• Customers come to us for the
services we provide
• Processes are different and
unique
• Services are different from
manufacturing
• We know what ‘good’ is
New viewpoint
• Customers tell us what services
to provide
• Process knowledge is universal
• Services are a product
• Must address the entire value
chain
• Our definition of ‘good’ is not
good enough

41. How is good defined?

42. The Perception of Good
• At what point is something considered “bad”?
• What factors make something bad?

43. The Perception of Good
• The A-B-C-D-F (or E) system
• 90% good
• 1 in 10 defective

44. The Perception of Good
• The A-B-C-D-F (or E) system
• 90% good
• 1 in 10 defective
• Higher standard
• 99% good
• 1 in 100 defective

45. The Perception of Good

46. The Perception of Good
• The A-B-C-D-F (or E) system
• 90% good
• 1 in 10 defective
• Higher standard
• 99% good
• 1 in 100 defective
• 6 Sigma
• 99.9999998% good

47. The Perception of Good

48. Who decides what is good?

49. The Perception of Good
• Customers are the final authority on what constitutes
‘good’ service
• The organization has input via standards
• We use the highest standard (customer vs. organization)
If we tell customers what is good or that services are good,
we are promoting to them

50. The Perception of Good
• Some factors are more critical than
others
• Your surgeon is an A student (90%) from
a prestigious university.
• He has years of experience in the
surgery he is performing on you.
• Of the 10 things he must do during the
surgery, he generally only misses 1 - he
forgets to take instruments out of his
patients.
• Do you trust him to operate on you?

51. The Perception of Good
• Some factors are more critical than
others
• Your cashier was an A student (90%) in
training.
• He has years of experience as a
cashier.
• Of the 10 things he must do during
check-out and bagging, he only misses
1 – he doesn’t double bag canned
foods.
• Do you trust him to ring up your sale?

52. The Perception of Good
• Changing perception
1. Elevate our personal standards and
change our perception
2. Promote awareness of results and the
impact on customers
3. Eliminate the chance poor service can
occur
• Lean / Six Sigma / Basic quality tools
4. Set high standards – far above 99%
5. Lead others by example

53. Processes Change Over Time
Additional information here

54. Operational Performance
• Old processes are:
• Slow
• Less capable of producing excellent quality
• More complex than needed
• Often designed for outdated purposes
• Unable to provide exactly what customers need

55. Processes Change Over Time

56. Processes Change Over Time

57. Processes Change Over Time

58. Processes Change Over Time

59. Processes Change Over Time
• Poor processes lead to
• Confusion
• Frustration and anger
• High prices for customers
• Loss of customers to competition
• Poor satisfaction ratings
• Poor public image