SlideShare a Scribd company logo
Lessons Learned:  Lean Six Sigma and Balanced Scorecard November 2008 Hans Froehling, DBA/CMBB, Senior Consultant
Intent of this Presentation ,[object Object],[object Object],[object Object],[object Object],[object Object]
Lean Six Sigma and  Value of Services
Service vs. Product ,[object Object],[object Object],[object Object],[object Object],[object Object],PRODUCT Tangible Inputs from customer segment are based on a design process Production not transparent  Product can be fully inventoried
Key Expectations of Service ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Key Focus of Lean Six Sigma Deployment in Services ,[object Object],[object Object],[object Object],[object Object],[object Object]
Strategic Deployment of Lean Six Sigma x Service Aspect Lean Six Sigma for Value Creation Timeliness Effectiveness Responsiveness x Lean Aspect Quality Aspect
Key Drivers of Value Satisfaction in the Outreach Lab Industry Timely Report/Bill Accurate  Report/ Bill Quick Problem Resolution Satisfaction With Value Loyalty Responsiveness Findings Based on Large-Scale Study in the Outreach Business Timeliness Effectiveness
Key Drivers of Value Satisfaction in the  Hospital Lab Industry Findings based on voice of customer Interviews in 14 hospitals Report in Chart When Physician Sees Patient All Test Results in One Chart  and Accurate Quick Access to Lab Effective Patient Care Satisfaction With Value Responsiveness Timeliness Effectiveness
Lean Six Sigma and  Services/Organizational Size
Key Elements of Lean Six Sigma Deployment ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Key Factors Affecting the Deployment of  Lean Six Sigma ,[object Object],[object Object],[object Object],Large Organization Small Organization Manufacturing  Services ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Lean Six Sigma and Organization Size ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Lean Six Sigma and Organization Size  (cont.) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Lean Six Sigma:  Special Challenges for Services ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Lean Six Sigma:  Special Challenges for Services (cont.) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Lean Six Sigma:  Special Opportunities for Services in Mid-sized Organizations ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Using Balanced Scorecard and Theory of Constraints to Identify Strategically Lean Six Sigma Projects
Approaches to Project Selection:  Overview (1) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Adapted from Snee & Hoerl (2003).
Approach to Project Selection:  Overview (2) Strategic Plan (External/Internal Voice of Customer Financial Performance Process Performance Value Design/Redesign Projects Lean Projects Error Reduction (Quality) Projects
Balanced Scorecard and Lean Six Sigma:  Making the Scorecard Operational Driver A Driver B Driver C Satisfaction Loyalty Key Drivers of  Value Satisfaction and Loyalty Operational Scorecard for driver Lean Six Sigma project to eliminate waste for driver ,[object Object],[object Object],[object Object],[object Object],Operational Performance Learning and Growth Satisfaction Financial Results
Balanced Scorecard and Lean Six Sigma:  Establish Operational Measurement ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Driver A Driver B Driver C Satisfaction Loyalty
Balanced Scorecard and Lean Six Sigma:  Review Variance of Operational Measurement ,[object Object],[object Object],What we learned :  43% of calls are resolved on the first call (cost = $2.50),  33% require outbound call (cost = $7.50), 24% are solved on weekends at the end of the month requiring overtime (cost = $10).
Balanced Scorecard and Lean Six Sigma:  Identify and Conduct Lean Six Sigma Project ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Start 1 st  Level rep takes call   Resolution? Resolve call Open ticket 2 nd  level rep  outbound calls Start
Balanced Scorecard and Lean Six Sigma:  Make Change and Measure Impact  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Theory of Constraints and Lean Six Sigma:  Identify the Right Projects  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Theory of Constraints and Lean Six Sigma:  Example  Bottleneck ,[object Object],[object Object],[object Object],Phlebotomist Drop Off Specimen in Lab Phlebotomist Draws Dispatch Phlebotomist Verified Results In LIS Match Order to Label Specimen Gets Analyzed Process Area Received Specimen Nurse Generates an Order in LIS OE to LIS Physician Orders Beginning Process End Process
Theory of Constraints and Lean Six Sigma:  Example  (cont.)   What we learned :  The duplicate orders are cancelled between midnight  4 PM.  3 FTEs are involved with investigating the duplicate orders at night.  This creates inefficient allocation of resources and instability in the  input    throughput    output process and unpredictable turnaround times.
Lessons Learned About Key  Elements of a Successful  Lean Six Sigma Deployment
Lessons Learned:  Criteria for Project Selection ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Lessons Learned:  Roles and Responsibilities ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Lessons Learned:  Employee Involvement ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Lessons Learned:  Curricula and Training Systems (1) ,[object Object],[object Object],[object Object],[object Object]
Lessons Learned:  Curricula and Training Systems (2) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object]
Current Trends (1) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Current Trends (2) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Current Trends (3) Functional Approach  Marketing Strategy Operations Value-added Approach Value Marketing Strategy Operations Excellence
Follow-up ,[object Object],[object Object],[object Object],[object Object],[object Object]

More Related Content

What's hot

TPM: Focused Improvement (Kobetsu Kaizen) Poster
TPM: Focused Improvement (Kobetsu Kaizen) PosterTPM: Focused Improvement (Kobetsu Kaizen) Poster
TPM: Focused Improvement (Kobetsu Kaizen) Poster
Operational Excellence Consulting
 
Continuous Improvement Powerpoint Presentation Slides
Continuous Improvement Powerpoint Presentation SlidesContinuous Improvement Powerpoint Presentation Slides
Continuous Improvement Powerpoint Presentation Slides
SlideTeam
 
software process improvement
software process improvementsoftware process improvement
software process improvement
Mohammad Xaviar
 
Developing HR Strategy
Developing HR StrategyDeveloping HR Strategy
Developing HR Strategy
AHarris10
 
Value Stream Mapping: Case Studies
Value Stream Mapping: Case StudiesValue Stream Mapping: Case Studies
Value Stream Mapping: Case Studies
TKMG, Inc.
 
Key performance indicator
Key performance indicator Key performance indicator
Key performance indicator
Confidential
 
Changing Roles of HR Management_ Materi Training "Fundamental HUMAN RESOURCES...
Changing Roles of HR Management_ Materi Training "Fundamental HUMAN RESOURCES...Changing Roles of HR Management_ Materi Training "Fundamental HUMAN RESOURCES...
Changing Roles of HR Management_ Materi Training "Fundamental HUMAN RESOURCES...
Kanaidi ken
 
Lean Project Management
Lean Project ManagementLean Project Management
Lean Project Management
Chartered Management Institute
 
Iso 9001 2015 checklist
Iso 9001 2015 checklistIso 9001 2015 checklist
Iso 9001 2015 checklist
Atul Sharma
 
Hay Group
Hay GroupHay Group
Lean Six Sigma-Case study
Lean Six Sigma-Case studyLean Six Sigma-Case study
Lean Six Sigma-Case study
sourov_das
 
Basic Software Effort Estimation
Basic Software Effort EstimationBasic Software Effort Estimation
Basic Software Effort Estimation
umair khan
 
Business Process Reengineering Powerpoint Presentation Slides
Business Process Reengineering Powerpoint Presentation SlidesBusiness Process Reengineering Powerpoint Presentation Slides
Business Process Reengineering Powerpoint Presentation Slides
SlideTeam
 
Lean Office by Operational Excellence Consulting
Lean Office by Operational Excellence ConsultingLean Office by Operational Excellence Consulting
Lean Office by Operational Excellence Consulting
Operational Excellence Consulting
 
Phases of ERP Implementation Lifecycle By ControlERP
Phases of ERP Implementation Lifecycle By ControlERPPhases of ERP Implementation Lifecycle By ControlERP
Phases of ERP Implementation Lifecycle By ControlERP
Calvin Hewitt
 
KPI for Human Resource Management
KPI for Human Resource ManagementKPI for Human Resource Management
KPI for Human Resource Management
SCS universal
 
Project Scheduling, Planning and Risk Management
Project Scheduling, Planning and Risk ManagementProject Scheduling, Planning and Risk Management
Project Scheduling, Planning and Risk Management
university of education,Lahore
 
Shrm future-hr-2022-final
Shrm future-hr-2022-finalShrm future-hr-2022-final
Shrm future-hr-2022-final
shrm
 
Team and project
Team and projectTeam and project
Team and project
Samya Alghazo
 
Capability maturity model cmm lecture 8
Capability maturity model cmm lecture 8Capability maturity model cmm lecture 8
Capability maturity model cmm lecture 8
Abdul Basit
 

What's hot (20)

TPM: Focused Improvement (Kobetsu Kaizen) Poster
TPM: Focused Improvement (Kobetsu Kaizen) PosterTPM: Focused Improvement (Kobetsu Kaizen) Poster
TPM: Focused Improvement (Kobetsu Kaizen) Poster
 
Continuous Improvement Powerpoint Presentation Slides
Continuous Improvement Powerpoint Presentation SlidesContinuous Improvement Powerpoint Presentation Slides
Continuous Improvement Powerpoint Presentation Slides
 
software process improvement
software process improvementsoftware process improvement
software process improvement
 
Developing HR Strategy
Developing HR StrategyDeveloping HR Strategy
Developing HR Strategy
 
Value Stream Mapping: Case Studies
Value Stream Mapping: Case StudiesValue Stream Mapping: Case Studies
Value Stream Mapping: Case Studies
 
Key performance indicator
Key performance indicator Key performance indicator
Key performance indicator
 
Changing Roles of HR Management_ Materi Training "Fundamental HUMAN RESOURCES...
Changing Roles of HR Management_ Materi Training "Fundamental HUMAN RESOURCES...Changing Roles of HR Management_ Materi Training "Fundamental HUMAN RESOURCES...
Changing Roles of HR Management_ Materi Training "Fundamental HUMAN RESOURCES...
 
Lean Project Management
Lean Project ManagementLean Project Management
Lean Project Management
 
Iso 9001 2015 checklist
Iso 9001 2015 checklistIso 9001 2015 checklist
Iso 9001 2015 checklist
 
Hay Group
Hay GroupHay Group
Hay Group
 
Lean Six Sigma-Case study
Lean Six Sigma-Case studyLean Six Sigma-Case study
Lean Six Sigma-Case study
 
Basic Software Effort Estimation
Basic Software Effort EstimationBasic Software Effort Estimation
Basic Software Effort Estimation
 
Business Process Reengineering Powerpoint Presentation Slides
Business Process Reengineering Powerpoint Presentation SlidesBusiness Process Reengineering Powerpoint Presentation Slides
Business Process Reengineering Powerpoint Presentation Slides
 
Lean Office by Operational Excellence Consulting
Lean Office by Operational Excellence ConsultingLean Office by Operational Excellence Consulting
Lean Office by Operational Excellence Consulting
 
Phases of ERP Implementation Lifecycle By ControlERP
Phases of ERP Implementation Lifecycle By ControlERPPhases of ERP Implementation Lifecycle By ControlERP
Phases of ERP Implementation Lifecycle By ControlERP
 
KPI for Human Resource Management
KPI for Human Resource ManagementKPI for Human Resource Management
KPI for Human Resource Management
 
Project Scheduling, Planning and Risk Management
Project Scheduling, Planning and Risk ManagementProject Scheduling, Planning and Risk Management
Project Scheduling, Planning and Risk Management
 
Shrm future-hr-2022-final
Shrm future-hr-2022-finalShrm future-hr-2022-final
Shrm future-hr-2022-final
 
Team and project
Team and projectTeam and project
Team and project
 
Capability maturity model cmm lecture 8
Capability maturity model cmm lecture 8Capability maturity model cmm lecture 8
Capability maturity model cmm lecture 8
 

Similar to 2008 Nov Lessons Learned Lean Six Sigma Balanced Scorecard

00 Vital Links Lean Six Sigma Change Acceleration 38 Pgs
00 Vital Links Lean Six Sigma Change Acceleration 38 Pgs00 Vital Links Lean Six Sigma Change Acceleration 38 Pgs
00 Vital Links Lean Six Sigma Change Acceleration 38 Pgs
freelean
 
Leading the way in six sigma
Leading the way in six sigmaLeading the way in six sigma
Leading the way in six sigma
Invensis Learning
 
Applying Lean Sigma Into Validation
Applying Lean Sigma Into ValidationApplying Lean Sigma Into Validation
Applying Lean Sigma Into Validation
tjcornish
 
Lean Six Sigma Leadership 062507
Lean Six Sigma Leadership 062507Lean Six Sigma Leadership 062507
Lean Six Sigma Leadership 062507
larrypenni
 
Overview Six sigma by D&H Engineers
Overview Six sigma by D&H EngineersOverview Six sigma by D&H Engineers
Overview Six sigma by D&H Engineers
D&H Engineers
 
Learning Six Sigma
Learning Six SigmaLearning Six Sigma
Learning Six Sigma
Methusael Cebrian
 
Lean Six Sigma- Internal Training Slides-2.pptx
Lean Six Sigma- Internal Training Slides-2.pptxLean Six Sigma- Internal Training Slides-2.pptx
Lean Six Sigma- Internal Training Slides-2.pptx
DebashishDolon
 
Applicability of CMMI for Small to Medium Enterprises
Applicability of CMMI for Small to Medium EnterprisesApplicability of CMMI for Small to Medium Enterprises
Applicability of CMMI for Small to Medium Enterprises
rhefner
 
Quality management and quality planning
Quality management and quality planningQuality management and quality planning
Quality management and quality planning
Amartya Talukdar
 
Process improvement for General Counsel and Law Firms
Process improvement for General Counsel and Law FirmsProcess improvement for General Counsel and Law Firms
Process improvement for General Counsel and Law Firms
George Dunn
 
5 tools in dmai...
5 tools in dmai...5 tools in dmai...
5 tools in dmai...
Hamdia Mansour
 
Service Strategy Service Offering Slideshare
Service Strategy Service Offering SlideshareService Strategy Service Offering Slideshare
Service Strategy Service Offering Slideshare
Kenneth Jones
 
Six Sigma
Six SigmaSix Sigma
Workharderand Harder
Workharderand HarderWorkharderand Harder
Workharderand Harder
Tom Burton
 
Work Harder and Harder
Work Harder and HarderWork Harder and Harder
Work Harder and Harder
guest8391c0b
 
PMO Managed Service Introduction
PMO Managed Service IntroductionPMO Managed Service Introduction
PMO Managed Service Introduction
Keith Rackley
 
Product and Services Design & Development
Product and Services Design & DevelopmentProduct and Services Design & Development
Product and Services Design & Development
Raj Vardhan
 
OM2_Lecture 11vvvhhbbjjbjdjjeebjrhvhuuhh
OM2_Lecture 11vvvhhbbjjbjdjjeebjrhvhuuhhOM2_Lecture 11vvvhhbbjjbjdjjeebjrhvhuuhh
OM2_Lecture 11vvvhhbbjjbjdjjeebjrhvhuuhh
rammanoharjharupnaga
 
Six Sigma Sample Project
Six Sigma Sample ProjectSix Sigma Sample Project
Six Sigma Sample Project
Andreas Freund, PhD
 
Total quality parameters - new ventures
Total quality parameters - new venturesTotal quality parameters - new ventures
Total quality parameters - new ventures
Mayank Singh
 

Similar to 2008 Nov Lessons Learned Lean Six Sigma Balanced Scorecard (20)

00 Vital Links Lean Six Sigma Change Acceleration 38 Pgs
00 Vital Links Lean Six Sigma Change Acceleration 38 Pgs00 Vital Links Lean Six Sigma Change Acceleration 38 Pgs
00 Vital Links Lean Six Sigma Change Acceleration 38 Pgs
 
Leading the way in six sigma
Leading the way in six sigmaLeading the way in six sigma
Leading the way in six sigma
 
Applying Lean Sigma Into Validation
Applying Lean Sigma Into ValidationApplying Lean Sigma Into Validation
Applying Lean Sigma Into Validation
 
Lean Six Sigma Leadership 062507
Lean Six Sigma Leadership 062507Lean Six Sigma Leadership 062507
Lean Six Sigma Leadership 062507
 
Overview Six sigma by D&H Engineers
Overview Six sigma by D&H EngineersOverview Six sigma by D&H Engineers
Overview Six sigma by D&H Engineers
 
Learning Six Sigma
Learning Six SigmaLearning Six Sigma
Learning Six Sigma
 
Lean Six Sigma- Internal Training Slides-2.pptx
Lean Six Sigma- Internal Training Slides-2.pptxLean Six Sigma- Internal Training Slides-2.pptx
Lean Six Sigma- Internal Training Slides-2.pptx
 
Applicability of CMMI for Small to Medium Enterprises
Applicability of CMMI for Small to Medium EnterprisesApplicability of CMMI for Small to Medium Enterprises
Applicability of CMMI for Small to Medium Enterprises
 
Quality management and quality planning
Quality management and quality planningQuality management and quality planning
Quality management and quality planning
 
Process improvement for General Counsel and Law Firms
Process improvement for General Counsel and Law FirmsProcess improvement for General Counsel and Law Firms
Process improvement for General Counsel and Law Firms
 
5 tools in dmai...
5 tools in dmai...5 tools in dmai...
5 tools in dmai...
 
Service Strategy Service Offering Slideshare
Service Strategy Service Offering SlideshareService Strategy Service Offering Slideshare
Service Strategy Service Offering Slideshare
 
Six Sigma
Six SigmaSix Sigma
Six Sigma
 
Workharderand Harder
Workharderand HarderWorkharderand Harder
Workharderand Harder
 
Work Harder and Harder
Work Harder and HarderWork Harder and Harder
Work Harder and Harder
 
PMO Managed Service Introduction
PMO Managed Service IntroductionPMO Managed Service Introduction
PMO Managed Service Introduction
 
Product and Services Design & Development
Product and Services Design & DevelopmentProduct and Services Design & Development
Product and Services Design & Development
 
OM2_Lecture 11vvvhhbbjjbjdjjeebjrhvhuuhh
OM2_Lecture 11vvvhhbbjjbjdjjeebjrhvhuuhhOM2_Lecture 11vvvhhbbjjbjdjjeebjrhvhuuhh
OM2_Lecture 11vvvhhbbjjbjdjjeebjrhvhuuhh
 
Six Sigma Sample Project
Six Sigma Sample ProjectSix Sigma Sample Project
Six Sigma Sample Project
 
Total quality parameters - new ventures
Total quality parameters - new venturesTotal quality parameters - new ventures
Total quality parameters - new ventures
 

2008 Nov Lessons Learned Lean Six Sigma Balanced Scorecard

  • 1. Lessons Learned: Lean Six Sigma and Balanced Scorecard November 2008 Hans Froehling, DBA/CMBB, Senior Consultant
  • 2.
  • 3. Lean Six Sigma and Value of Services
  • 4.
  • 5.
  • 6.
  • 7. Strategic Deployment of Lean Six Sigma x Service Aspect Lean Six Sigma for Value Creation Timeliness Effectiveness Responsiveness x Lean Aspect Quality Aspect
  • 8. Key Drivers of Value Satisfaction in the Outreach Lab Industry Timely Report/Bill Accurate Report/ Bill Quick Problem Resolution Satisfaction With Value Loyalty Responsiveness Findings Based on Large-Scale Study in the Outreach Business Timeliness Effectiveness
  • 9. Key Drivers of Value Satisfaction in the Hospital Lab Industry Findings based on voice of customer Interviews in 14 hospitals Report in Chart When Physician Sees Patient All Test Results in One Chart and Accurate Quick Access to Lab Effective Patient Care Satisfaction With Value Responsiveness Timeliness Effectiveness
  • 10. Lean Six Sigma and Services/Organizational Size
  • 11.
  • 12.
  • 13.
  • 14.
  • 15.
  • 16.
  • 17.
  • 18. Using Balanced Scorecard and Theory of Constraints to Identify Strategically Lean Six Sigma Projects
  • 19.
  • 20. Approach to Project Selection: Overview (2) Strategic Plan (External/Internal Voice of Customer Financial Performance Process Performance Value Design/Redesign Projects Lean Projects Error Reduction (Quality) Projects
  • 21.
  • 22.
  • 23.
  • 24.
  • 25.
  • 26.
  • 27.
  • 28. Theory of Constraints and Lean Six Sigma: Example (cont.) What we learned : The duplicate orders are cancelled between midnight 4 PM. 3 FTEs are involved with investigating the duplicate orders at night. This creates inefficient allocation of resources and instability in the input  throughput  output process and unpredictable turnaround times.
  • 29. Lessons Learned About Key Elements of a Successful Lean Six Sigma Deployment
  • 30.
  • 31.
  • 32.
  • 33.
  • 34.
  • 35.
  • 36.
  • 37.
  • 38. Current Trends (3) Functional Approach Marketing Strategy Operations Value-added Approach Value Marketing Strategy Operations Excellence
  • 39.