The document discusses Six Sigma "Kaizen" workouts and provides guidance on executing Kaizen projects. Some key points: - Kaizen is a philosophy focused on gradual, continuous improvement through problem-solving. - Kaizen workouts engage employees to identify improvement ideas. They have helped companies like GE and Toyota save millions. - Workouts focus on "low-hanging fruit" - obvious, frequent issues that can quickly impact goals. They require less data and more discussion than typical Six Sigma projects. - The document provides templates and guidelines for conducting workouts, including identifying problems, data collection, solution generation, and implementation planning. It also discusses facilitating workouts and selecting high-priority topics.

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Six Sigma “Kaizen” Work-Out
Simple & Powerful
Usman Mazhar
Marketing Division
EFERT ‘ 2011
Corporate Objectives, 2011
• Rs. 35 million savings target
• Training 1BB, 2GB and 4YB training waves
• Train new Marketing resources on Six Sigma
• Focused saving drive with “Kaizen Workouts”

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Six Sigma Project Types
KAIZEN
What is Kaizen?
Kaizen is a philosophy focused on problem-solving to achieve gradual, orderly, and
continuous improvement throughout all of the elements of a supply chain process.
Kaizen is made up of two Japanese words:
meaning
"change"
meaning
"for the
better" or
"good"

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Power of Kaizen Work-Out
Workout tools were largely credited as a critical accelerator of GE's Six Sigma effort
Evaluating Work-Out, former GE CEO Jack Welch observed,
"Trust the people in the organization - the people in the best position to
improve a business are the people in the job every day."
Work-Out engages the best thinking of those in the organization who are closest to the
processes, who "live them" daily and who invariably have a lot of ideas for improvement.
Kaizen Work-Out, Benefits and Impact
Marketing Division reported Rs 1.4 Million from 5 Work-Outs
in 2010
Manufacturing Division has reported Savings as High as Rs 15
Million, from Wok-Outs
Marketing Targeting at least Rs 05 Million through Work Outs
inn 2011
IMC Global attributes more than $3.5 Million in savings
through Work Outs
GE, General Motors, Toyota has saved Millions through Work
Outs
Zurich Financial Services UK has reported $100 Million in
savings through Work Outs

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Focus on Low Hanging Fruit!
Work-Out
Green Belt
Black Belt
Focus on clearing the Low-hanging fruits, making way for larger and complicated Projects
Obvious, frequent and Immediate Action issues
Simple yet Impactful
A Workout requires less Data Analysis and more Discussion and qualitative deliberation.
Workout typically relies for much of its power on precisely the group of employees who have
received limited exposure to Six Sigma tools and concepts.
$
Easy Benefits
Kaizen Work-Out Philosophy
Speed to
Action
Simplicity of
Tools &
Greater
Impact
Accelerating
Change
through
Empowermen
t
Continuous
Improvemen
t
“KAIZEN”
Engagement
throughout
the
Organization
Linked to
Immediate
Strategic
Priorities

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Work-Out Execution Phases
(1-5 days)
Identify Problem
Challenge & Goal Statement
Data Collection & Initial
Analaysis
Process Mapping
Root Cause Analysis
Solution Generation &
Action Plan
Results, Decision &
Implementation
Work-Out Tools
• Process Mapping
• Fishbone Analysis - C,N,X
• Pareto Principle
• 5 Whys
• Affinity Diagram
• Poka Yoke
• Visual Management
• 5S
• Anti-solution
• Brainstorming
• 7 Wastes
Work-Out Presentation Structure
• Challenge & Goal Statement
• Expected Financial Benefits & KPI Improvement
• Team Members, Facilitator and Decision Maker (Owner)
• CTQs – what will not be compromised
• Scope
• Process Mapping
• Root Cause Analysis
• Critical factors and Proposed Solution
• Action Plan
• Financial Impact
• Solution Implementation, Support and Sustainability
Above should be covered, Any other section or analysis can be included as per the Work Out

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Work-Out Decision Making
• Criteria to Select High Priority Topics
▫ Needs attention
▫ Has high customer value
▫ Is cross functional
▫ Impacts external customer
▫ Can provide a quick win
Choosing a Work-Out

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The Pay Off Matrix
01 Best Work Out Award will be given out!
Where would you like to put your effort?
Facilitation
Facilitation is the reasoned and intended intervention, on
the part of the facilitator, into the ongoing events and
dynamics of a group with the purpose of helping that group
attain its stated end more effectively.
Slide taken from GEM International Training

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Facilitation Tools
Facilitation tools can be categorized into the
following areas:
• Problem solving tools
• Idea generation tools
• Decision making tools
• Prioritization tools
• Action planning tools
Slide taken from GEM International Training
Facilitation Tools
Problem
Solving Tools
• Cause and
Effect Analysis
• Process
Mapping
Idea Generation Tools
• Brainstorming
• Storyboarding
(affinity diagramming)
• Nominal Group
Technique
Decision
Making
Tools
• Voting
• Multivoting
• Ranking
• Delegation
• Negotiation
• Consensus
Prioritization
Tools
• Implementation
/Pay Off Matrix
• Circle of
Control/Circle
of Influence
Action
Planning
Tools
• Force Field
Analysis
• Contingency
Diagram
Slide taken from GEM International Training

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Preventions/Interventions
High
Low
Options for Dealing with Disruptive Behaviors
Ignore or Avoid
Make Eye Contact
Walk Half Way
Walk by Them, Make Eye Contact
Inquire, “What do you think?”
Reflect or “name it” (“You seem distracted.”)
Address Directly on a Break
Address Before the Entire Group
Dealing with Disruptive Behaviors
Slide taken from GEM International Training
Managing Conflicting Modes
Uncooperative Cooperative
Cooperativeness
Satisfy others concerns
Unassertive
Satisfy
own
concerns
Assertiveness
Competing
Avoiding
Compromising
Collaborating
Accommodating
Slide taken from GEM International Training

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Compromising
Moderate in both assertiveness and
cooperativeness
• The goal is to “find a middle ground.”
• Finding a middle ground or forgoing some of your
concerns in order to have others met.
• It can mean negotiating or splitting the difference.
Potential negative consequences of Compromising:
• Not accomplishing critical tasks/objectives
• Lack of credibility
• Lose Big Picture / Long Term Goals
Slide taken from GEM International Training
Collaborating
High assertiveness and high cooperativeness
• The goal is to find a “win-win solution.”
• When you are concerned with fully satisfying both sides
of an issue.
• It is working with the other person to find an optimal
solution.
Potential negative consequences of Collaborating:
• Too much time spent on an insignificant issue
• Ineffective decisions made from input from people unfamiliar with the
situation
• Unfounded assumptions about trust
Slide taken from GEM International Training

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Facilitator Behavior –
Managing Conflicts
• Listen actively to points being made.
• Ask for concerns.
• Stay neutral. Paraphrase key ideas whether you agree
or not.
• Make sure the divergent opinion is heard and
understood by the rest of the group. Get others to
paraphrase the main idea.
• Thank the person for their input/validate them.
• Make decisions quickly, ask the group to decide on
what ought to be considered.
• Keep it objective.
Slide taken from GEM International Training
Marketing Kaizen Work-Outs
• Marketing Strategy’ 2011
 Emphasis is on off season sales
 Emphasis will be on Cost Efficiencies
• Possible Work Outs
 Breaking an Institutional Buyer (Sugar Mill, Cotton Ginner,)
 Reviving Dead Sales Points
 Reviving low performing trucker
 Improving Placement Variance within Area/Zone
 Improving Crop Conversion for Products
 Improving Market Development Processes
 Improving Warehousing Processes
 Improving Communication and Information flow
 Process Efficiencies through removing/reducing Non Value added
steps

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Six Sigma Work-Out
THANK YOU!
Use the Power and Simplicity of
Work Out to Achieve Higher Results
Project Replication 2011
Project Dept Comments
Optimizing Product
Stock Outs resulting
in Sales loss Sales
Project to be replicated once the replication session for the
Zone AMMs has been arranged - for now to be replicated and
reported by Okara, Lahore and Sahiwal Area - to be reported in
terms of percentage reduction in product stock outs and/or
quantity of product utilized from Safety/Buffer Stock
Rationalization of
Dealer Network,
improving percentage
of Ineffective Dealers
Sales
Project to be replicated once the replication session for the
Zone AMMs has been arranged - for now to be replicated and
reported by Daharki and Hyderabad Zones (South Sales Dept) -
to be reported in terms of percentage of ineffective dealers
improved and incremental MT sales generated throught the
Project
Conversion of Non
Engro Users through
MD Activities Sales
Project replication to continue as done in 2010, benefits to be
first verified by MDA South, SMDO North or MDO Multan for
respective Zones and then reported in monthly update -
Monthly update in terms of Number of Bags sold plus back up
data for Non Engro users plus conversion percentage of Non
Engro user acreage

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Project Replication 2011
Project Title Leader Comments
1
Sales Optimization through
Institutional Buyers
AZD
Project SOP to be shared with all team members, project to be replicated - replication status to be
reported in monthly updates
2 Reducing PER/ROSP cycle time NBA
Project SOP to be shared with all team members, project to be replicated after go ahead from
Distribution - replication status to be reported in monthly updates in terms of numbers of days
taken for approval of PER/ROSP
3
New Dealer appointment
through structured decision
making
DTW
Project SOP to be shared with all team members, project to be replicated - replication status to be
reported in monthly updates
4
POL optimization for Zarkhez
Sales in Quetta Area (MT/Ltr)
ABC
Project SOP to be shared with all team members, project to be replicated if required in the Area -
replication status to be reported in monthly updates - team members should be at least
knowledgable of the SOP
5
Efficient use of loose product at
field warehouses
SRC
Project SOP to be shared with all team members, project to be replicated - replication status to be
reported in monthly updates in terms of quantity of loose product utilized in Kg
6
Reducing TAR collection period
in Quetta Area
ABC
Project SOP to be shared with all team members, project to be replicated if required in the Area -
replication status to be reported in monthly updates - team members should be at least
knowledgable of the SOP
7
Improving the declining
Achievement versus Sales Plan
of Zingro in Okara Area
MSM
Project SOP to be shared with all team members, project to be replicated if required in the Area
and if similar issue of declining sales is faced - replication status to be reported in monthly updates
- team members should be at least knowledgable of the SOP - if used then update to be given in
terms of MT of incremental sales
8
Reduction of Paper
Consumption in Zonal Office
(2009 Project)
MTSK
Project SOP to be shared with all team members, project to be replicated in all Zonal Offices -
replication status to be reported in monthly updates in terms of Paper utilized and Paper saved - All
Zonal Coordinators expected to be knowledgable of the SOP
9
Rejuvenation of Zarkhez Green
Sales for Potato Crop in Sahiwal
Area
ASd
Project SOP to be shared with all team members, project to be replicated if required in the Area
and if similar issue of declining sales is faced - replication status to be reported in monthly updates
- team members should be at least knowledgable of the SOP - if used then update to be given in
terms of MT of incremental sales
10
Standardization of Warehouse
Acquiring Process
MIQ
Project SOP to be shared with all team members, project to be replicated for assistance on Area
level Management - replication status to be reported in monthly updates
Project Replication 2011
Project Title Leader Comments
1
Improving Zingro Sales
through untapped
Distributor medium of
Pesticides Dealers
MJAK
Project SOP to be shared with all team members, project to be replicated if
required in the Area and if similar issue of declining sales is faced - replication
status to be reported in monthly updates - team members should be at least
knowledgable of the SOP - if used then update to be given in terms of MT of
incremental sales
2
Improving Zarkhez Sales
to Non Engro Users of
Citrus
MJAK
Project SOP to be shared with all team members, project to be replicated if
required in the Area and if similar issue of declining sales is faced - replication
status to be reported in monthly updates - team members should be at least
knowledgable of the SOP - if used then update to be given in terms of MT of
incremental sales
3
Improving Zarkhez Sales
using SMS Technology
AMd
Project SOP to be shared with all team members, project to be replicated in all
Areas - replication status to be reported in monthly updates in terms of
incremental bags sold through this methodology
4
Rationalization of WH
capacity on Area level
NIt
Project SOP to be shared with all team members, project to be replicated if
required in the Area for assistance - replication status to be reported in
monthly updates - team members should be at least knowledgable of the SOP
5
Reducing Errors on
Financial Instruments
ASd
Project SOP to be shared with all team members, project to be replicated in all
Areas as and when required - replication status to be reported in monthly
updates

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Thank you