The document outlines the importance of continuous improvement and lean methodologies in logistics, highlighting their roles in increasing efficiency, productivity, and customer satisfaction while reducing costs. It differentiates between lean and continuous improvement (CI) methodologies, emphasizing the use of tools like 5S and value stream mapping to identify and eliminate waste. Real-life examples illustrate the successful implementation of these methodologies in organizational processes.

1. 6sSIX SIGMA
Continuous improvement Lean
Importance of CI & Lean
methodologies in Logistics
Kesavakrishnan (Kesava)
Keysight Technologies (formerly known as Agilent Electronic Measurement
Group)

2. 6sSIX SIGMA
Continuous improvement Lean
Agenda
• Quick glance of various Quality
methodologies (CI, Lean, 6sigma)
• Why its important?
• Difference between Lean and CI
• Useful quality tools (5S & VSM)
• Real examples
• Q & A

3. 6sSIX SIGMA
Continuous improvement Lean
Difficulty/Complexity
Impact
Breakthrough
Workout
Teams
Lean (“Kaizen”)
Events
Enabling Projects
Proceed with caution (AVOID)
Empowered
Problem Solving
Teams
(Just Do It, Work-
Out)
Six Sigma®
Improvement
Teams
(DMAIC)
Design for
Six Sigma
(DFSS)
Projects
Quick glance of various Quality
methodologies

4. 6sSIX SIGMA
Continuous improvement Lean
Why it is important?
• Increase the efficiency level
• Productivity improvement
• Reduce the manpower cost
• Improves the customer satisfaction
level
• Increase the competitiveness

5. 6sSIX SIGMA
Continuous improvement Lean
Difference between Lean and CI
Lean CI
• A quality-oriented thought process
used to identify and remove waste
(“Muda”) as defined by customer
• Create flow, eliminate waste through
VSM and 5S tools
• Eliminate foreseeable defects
(“mistake proofing”)
• Short-term projects (1-8 weeks)
• Lean tools, with spontaneous projects
and basic measurement system
• Plan, Do, Check and Action (PDCA)
simple methodology
• Identify the improvement and just do it
(quick wins)
• No quality tools required
• Easy to identify & implement (just in a
day or two)

6. 6sSIX SIGMA
Continuous improvement Lean
Continuous Improvement - PDCA Cycle
– Plan: Plan for change. Define
steps and predict results.
– Do: Execute plan. Take small
steps in controlled environment.
– Check: Study the results.
– Act: Take action to standardize
and improve process on broader
scale.
The Plan-Do-Check-Act Cycle was
made popular by W. Edward Deming
It helps to promote and drive
Continuous Improvement

7. 6sSIX SIGMA
Continuous improvement Lean
Lean Objectives
Eliminate MUDA (waste)
Enhance value delivered to customer
Unleash Innovation using Employee Engagement
Cost
Defects
Lead time
Waste!
Productivity
Customer satisfaction
Profit
Quality
Cash flow
Cycle Time
Value add
Before
After
Non value
add
Same work
completed in
less time and
effort

8. 6sSIX SIGMA
Continuous improvement Lean
Value & Waste
Value:
Value is defined from the standpoint of the End/Ultimate
customer. It can be expressed in the form of:
• a specific product and/or Service, which meets
customer’s needs
• at a specific price
• at a specific time
Waste
All other actions and unwanted features are by definition — WASTE.
These add no value for the customer — simply raise costs of our
business

9. 6sSIX SIGMA
Continuous improvement Lean
Waste Categories
Extra Processing
Waiting
Motion
Inventory
Transportation
Overproduction
Defects/Inspection
Waiting Transportation
Overproduction
Inventory
People
Quantity
Quality

10. 6sSIX SIGMA
Continuous improvement Lean
Waste Categories - Examples
Waste Category Office Examples
Overproduction
Printing Paperwork out before it is really needed. Purchasing items before they are needed.
Processing before the next person is ready for it.
Inventory Batch Processing Transactions or reports. Files waiting to be processed.
Waiting System Downtime, system response time, approval from others.
Extra Processing Extra Copies, unnecessary or excessive reports, transactions.
Defects Order entry errors, invoice error. Any error leading to re-work.
Excess Motion Walking to/from copier, fax machine other offices.
Transportation Excessive Email attachment, multiple hands-offs.
Underutilized People
Limited employee authority and responsibility for basic task, management command and
control, inadequate business tools available.

11. 6sSIX SIGMA
Continuous improvement Lean
Lean Process Improvement Tool: “5S”
1. Sort (Seiri)
Clearly distinguish necessary items and unnecessary items; eliminate
unnecessary items.
2. Simplify or Straighten or Systematize (Seiton)
Put the necessary items in their place and provide easy access.
3. Sweep or Shine (Seiso)
Clean everything, keep it clean daily, and use this process to inspect for
defects.
4. Standardize (Seiketsu)
Create visual controls and guidelines for keeping the workspace organized
and clean. This is to ensure we do the right thing, the right way, every time.
5. Sustain or Self-discipline (Shitsuke)
Implement disciplines and training to ensure the 5S standards are followed by
everyone.

12. 6sSIX SIGMA
Continuous improvement Lean
Making 5S Work
5S is an organizational and cultural change, not a one-time action
• Involves everyone in the organization, top to bottom
• Practiced daily and with intention
• Must involve suppliers & customers where appropriate
• Integrates nicely with the “Plan-Do-Check-Act” cycle

13. 6sSIX SIGMA
Continuous improvement Lean
Value Stream Mapping
1. Provide a high level,
“block” overview
2. Depict primary flows:
info, material, $
3. Emphasize TIME
4. Goal: to highlight
waste opportunities
(not hide them)
Value Stream Mapping is an important
lean exercise designed to…
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14. 6sSIX SIGMA
Continuous improvement Lean
Value Stream Map: getting to a Future State
The Value Stream Map becomes an
important tool to project future
improvement projects and detail their
impact.
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15. 6sSIX SIGMA
Continuous improvement Lean
Real life examples - Admin Filling Restructuring
Before After
Disorganized and
unstructured
Filling as per Sales
Order Serial
Number
• No defined process
• No defined frequency
• High retrieval time (~4 hours)
• Low retrieval % (<70%)
• Audit non-compliance
Labeled Cabinets
Five “S” implemented
Date wise archiving
•Standard Process defined
• Frequency and ownership defined
• Low retrieval time (~3 min)
• High retrieval % (~100%)
• Audit Compliance
5S

16. 6sSIX SIGMA
Continuous improvement Lean
Sales Admin Printer movement
Before
After
To here (Printer)
Motion Waste
From here
(Workstation)

17. 6sSIX SIGMA
Continuous improvement Lean
Sales Admin Ebiz
Common Sales, Support and SOM web invoices in-house printer
Before After
Extra
Processing
steps
Sales CSR SOM CSR Support CSR
Ebiz Invoicing CSR
does invoicing in
customers portal
Multiple printers
Common printer at ATI
Sales CSR SOM CSR Support CSR
• Non standard process
• Delayed invoicing
• Missing invoices
• Collections follow-ups
• Standard and Simplified process
• Timely invoicing
• Rare Missing invoices
• Limited Collections follow-ups
1 2
3

18. 6sSIX SIGMA
Continuous improvement Lean
Kaizen Action 1------ motion, Poka-Yoke
Before AfterI need to find the 15 bl-in
screw driver, let me look
for…
With the green label, now I
can quickly find the right
screw driver.

19. 6sSIX SIGMA
Continuous improvement Lean
Kaizen Action 2------ motion, reduce 1 work bench
Before After
1 operator has to transmit
between two work benches for
her assembling process
Reduce motion and Saved 10m2 space
by optimizing process flow with 1 work
bench reduction.

20. 6sSIX SIGMA
Continuous improvement Lean
Kaizen Action 3------material movement, reduce
4 work benches to 2 benches
Before After
3 testers and 4 work benches 2 testers & 2 work benches after
combining testers, saved 8M2 space
Empty

21. 6sSIX SIGMA
Continuous improvement LeanGroup/Presentatio
Kaizen Action 4------WIP reduction
Before After
40 units
20 units
15 units
5 units

22. 6sSIX SIGMA
Continuous improvement Lean
The authors of Lean Thinking point to these types
of benefits…
1. Double productivity
2. Cutting throughput times by 90%
3. Reducing inventory by 90%
4. Errors/Defects reduced by 50%
5. Work-related injuries reduced by 50%
6. Time to market for new products cut in half (50%)
7. Capital investment modest to neutral
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23. 6sSIX SIGMA
Continuous improvement Lean
Q & A