A webinar by Fabrizio Pellizzetti, a Master Black Belt in Lean Six Sigma. In the first half Fabrizio thoroughly discusses what Lean Six Sigma is and the evolution of the methodology. In the second half, he dispels some myths surrounding LSS & clarifies real challenges before ending with the Lean Six Sigma Applicability.

1. W E B I N A R
www.ilxgroup.com
LEAN SIX SIGMA D EMYSTIFIED
A Services Perspective
F a b r i z i o P e l l i z z e t t i

2. L E A N S I X S I G M A D E M Y S T I F I E D W E B I N A R
Q & A R E S O U R C E S FOLLOW US S U R V E Y
Housekeeping Note

3. L E A N S I X S I G M A D E M Y S T I F I E D W E B I N A R
Introduction
Fabrizio Pellizzetti
Master Black Belt - Lean Six Sigma
• 15 years in Change Management, Process
Improvement, Lean Six Sigma for Services and IT
• Consultancy, training and strategic advice on
transformation programs to global organisations, public
institutions and technology start-ups
• Speaker at International Conferences
• A passion for Continuous Improvement, Innovation and
Organisational Learning

4. L E A N S I X S I G M A D E M Y S T I F I E D W E B I N A R
Agenda & Objectives
• Understand what is Lean Six Sigma (LSS)
• The evolution of the methodology
• Dispel some myths surrounding LSS & clarify
real challenges
• Lean Six Sigma Applicability - Services & IT
• Questions & Answers

5. L E A N S I X S I G M A D E M Y S T I F I E D W E B I N A R
SECTION 1
W h a t i s L e a n S i x S i g m a ?

6. L E A N S I X S I G M A D E M Y S T I F I E D W E B I N A R
5. Problem Solving
What is Six Sigma?
1. Metric & Benchmark 3. Tools & Methods
4. Management
Philosophy
6. Change
Management
2. Organisation

7. L E A N S I X S I G M A D E M Y S T I F I E D W E B I N A R
Brief History of Lean
• Redesign processes to achieve Just in Time & Total
Quality Control
• “Lean” term introduced in the 1990’s
• Main Goal: remove all forms of waste
Toyota Production System
Motion
Over-
production
Defects
Transport
Motion
Stock
Non-used
talent
Over-
processing
Waiting

8. L E A N S I X S I G M A D E M Y S T I F I E D W E B I N A R
Lean Six Sigma – 2 complementary approaches
Lean Six Sigma is a blend of two powerful
process improvement methods
Six Sigma
• Focus on Defects reduction
& problems of variation
• Comprehensive toolkit for
Data Driven Problem
Solving
• Continuous improvement
culture (dedicated
infrastructure)
• Maximise process
velocity, minimise all
forms of waste
• Rich toolkit for analyzing
Process Flow & Delays
• Remove all NON value
add activities from the
process
Lean

9. L E A N S I X S I G M A D E M Y S T I F I E D W E B I N A R
Two approaches to Process Improvement…
B e s t p r a c t i c e d r i ve n
Improvement “by the book”
P r o b l e m d r i ve n
Improvement “by experiment”
Other organisations
have tried this solution
and it worked.
Believe me!
We don’t know the
right solution, until we
define the problem
and understand its
root causes.
I N S U M M A R Y

10. L E A N S I X S I G M A D E M Y S T I F I E D W E B I N A R
Process Problems
A c t i v i t y
A c t i v i t y
People
Material
Equipment
Policies
Procedures
Methods
Environment
Product
Service
Other results
Randomness
.
.
.
We need to understand the relationship
between inputs and output and identify
the critical x’s (root causes)
Our problems are
related to processes

11. L E A N S I X S I G M A D E M Y S T I F I E D W E B I N A R
Process
fragmentation
No Scalability Defects
Delays
Decrease of
Value
Waste
Missed Targets
and SLA’s
Dissatisfied
customers
Failed Projects
Wrong
Decisions
Symptoms of process problems

12. L E A N S I X S I G M A D E M Y S T I F I E D W E B I N A R
So what is Effective Problem Solving?
Learning & Discovery
+
Asking the Right Questions
+
A common Framework
We cannot solve our problems
with the same thinking we used
when we created them.
Albert Einstein

13. L E A N S I X S I G M A D E M Y S T I F I E D W E B I N A R
DMAIC – Problem Solving framework
Problem Solving is about Learning
and Knowledge Acquisition
Define the
Problem
D E F I N E
?
Baseline the
Process
M E A S U R E
Find Root
Causes
A N A L Y S E
Pilot the
Change
I M P R O V E
Sustain
Improvement
C O N T R O L
Learning is not compulsory…
neither is survival.
W. Edwards Deming

14. L E A N S I X S I G M A D E M Y S T I F I E D W E B I N A R
Different Levels of process
META PROCESSES & QUALITY MODELS
Macro Processes & Life Cycle Models
REQ DES DEV TEST Support
P r o j e c t & R i s k M a n a g e m e n t
V e r i f i c a t i o n & V a l i d a t i o n
Support
Incident
Management
Micro
Processes

15. L E A N S I X S I G M A D E M Y S T I F I E D W E B I N A R
DMAIC – Problem Solving tools
VOP Collect Data Data Pilot
VOC
Problem &
Cost
Model
Baseline
Process
Root Causes
Generate Ideas
Drive Change
Process
Controls
Sustain
Continuous
Improvement
120906030
9
8
7
6
5
4
3
2
1
0
Time_to_Close_(hours)
Frequency
Histogram of Time_to_Close_(hours)
D E F I N E
?
M E A S U R E A N A L Y S E I M P R O V E C O N T R O L

16. L E A N S I X S I G M A D E M Y S T I F I E D W E B I N A R
Lean Six Sigma Evolution
ABSTRACTION
S E R V I C E S
• Ambiguous VOC
• People & Variation
• Communication
• “Information Driven”
S O F T W A R E & I T
• Fuzzy specifications
• Social Engineering
• Communication
• “Model Driven”
• Clear VOC
• Repeatable Process
• Standard Output
• “Product Driven”
M A N U F A C T U R I N G

17. L E A N S I X S I G M A D E M Y S T I F I E D W E B I N A R
Manufacturing vs. Services
M A N U FA C T U R I N G S E R V I C E S
• The VOC – clear, measurable, specific
requirements (physical attributes)
• The Process – standard, repeatable,
product driven
• The Variation – physical product
variability
• Defects & Cost – defects linked to
Output variation, Cost of poor quality
usually known
• Process Waste – TIMWOOD
• Measurement – easy to get; process
yields its own measures
• Importance of Projects – LOW, the
process is mostly a continuous flow
• The VOC – ambiguous, emotional,
qualitative, misunderstood requirements
• The Process – non-standard, flexible,
information driven
• The Variation – humans and
communication
• Defects & Cost – communication defects,
Cost of poor quality often unknown
• Process Waste – failure to learn, poor
decision making, ambiguity and rework
• Measurement – requires conceptual
modelling, subjective measures
• Importance of Projects – MAJOR,
service industry is in constant “project
mode”

18. L E A N S I X S I G M A D E M Y S T I F I E D W E B I N A R
Services Continuum
I N T E R A C T I O N
REPEATABILITY
Each task
is the same
Each task is different
Each task is unique
Problems of Variation
Traditional LSS focus
Problems of Communication
LSS for Services focus

19. L E A N S I X S I G M A D E M Y S T I F I E D W E B I N A R
M y t h s & R e a l i t i e s
SECTION 2
L e a n S i x S i g m a

20. L E A N S I X S I G M A D E M Y S T I F I E D W E B I N A R
…some are more equal
than others. Services and
IT Processes are different
and so should be the
approach used to apply
Lean Six Sigma;
adaptation is key!
Myth Number 1
All Processes are Equal…
M Y T H
Processes are all equal…
They are made of
activities, inputs and
outputs. LSS methods can
be applied to any
process; no adaptation
required!
R E A L I T Y

21. L E A N S I X S I G M A D E M Y S T I F I E D W E B I N A R
Myth Number 2
Measurement and
statistics are just tools.
Data and facts are used to
support Problem Solving
and Decision Making.
Variation in the world of
services is different (the
human factor).
Six Sigma is all about measurement
and statistics
M Y T H
As the name suggests, the
main focus of this method
is measuring and reducing
process variation.
Variation is, after all, the
enemy of quality.
R E A L I T Y

22. L E A N S I X S I G M A D E M Y S T I F I E D W E B I N A R
Myth Number 3
When processes are
performed by people and
driven by information,
measures tend to become
more subjective.
A combination of qualitative
and quantitative data is
required. Beware of the
impacts of measurement on
the behaviour of people.
Services and IT processes cannot
really be measured
M Y T H
Meaningful & reliable
process measurement
requires quantitative and
objective data.
Service processes simply do
not produce that type of
measures.
R E A L I T Y

23. L E A N S I X S I G M A D E M Y S T I F I E D W E B I N A R
Myth Number 4
The right framework
provides a structured
method for problem solving
applicable also to non
standardised activities
(e.g. Project Management,
Order to Cash, incident
management).
Lean & Six Sigma are not applicable to services
and IT Processes
M Y T H
Lean & Six Sigma are
designed exclusively for
repetitive and
standardised operations
(including transactional
aspects of services), not
for information driven
processes.
R E A L I T Y

24. L E A N S I X S I G M A D E M Y S T I F I E D W E B I N A R
Core & Supporting/Enabling Processes
T E L E P H O N Y & I S P
Human
Resources Procurement IT Support
Inventory
Management
Problems are f ound at bot h levels of process
SUPPORTING
PROCESSES
Deliver Broadband to
customer
Install Equipment &
activate service
Switch User from
another provider
CORE
PROCESSES

25. L E A N S I X S I G M A D E M Y S T I F I E D W E B I N A R
SERVICE PROVISION
Poor quality (defects) long cycle time,
cost and waste
BILLING
Wrong invoices, late payments, delays in
cash collection
Some INDUSTRY Examples
Healthcare (patient referral process)
P R O B L E M / P A I N
Telecom (incorrect customer invoices)
INCIDENT MANAGEMENT
Breach of SLA, wrong fixes, long time to
restore service, user dissatisfaction
PROJECT MANAGEMENT
Missed deadlines, unsatisfied customers,
high costs, too many change requests
P R O C E S S A R E A
E X A M P L E
P R O C E S S A R E A
E X A M P L E
IT (tickets management process) Client Projects (also improvement projects)
P R O B L E M / P A I N

26. L E A N S I X S I G M A D E M Y S T I F I E D W E B I N A R
The Lean Six Sigma “spirit”
K E Y W O R D S
LSS: a problem solving method
• Pragmatic: Focus on the Business Case
• Experimental: Rejects pre-defined solutions
• Facts & Data: To support decision making
• Different “types of thinking”

27. L E A N S I X S I G M A D E M Y S T I F I E D W E B I N A R
Inspired from Martial Arts
Clear Roles
Shared Vision
Lean Six Sigma profiles
MASTER BLACK BELTS
Full time Experts
Strategic Advisors
E X E C U T I V E S
Strategic Vision
Programme Sponsors
Y E L LOW B E LT S
Project Specific
Subject Matter Experts
G R E E N B E LT S
20-50% Dedicated to LSS
Project Leaders
C H A M P I O N S
Project Sponsor
Help to identify Projects
BLACK BELTS
50-100% dedicated to LSS
train, coach, lead projects

28. L E A N S I X S I G M A D E M Y S T I F I E D W E B I N A R
Courses available at ILX Group

29. L E A N S I X S I G M A D E M Y S T I F I E D W E B I N A R
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30. Thank you for listening
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