An Introduction to Lean Six Sigma

Most executives intuitively know that some (if not many) of their service processes are inefficient.  Yet, service process improvements are a barely touched frontier in the relentless corporate drive to lower costs and improve quality. One reason for this is the lack of objective process controls such as those developed for manufacturing over the last 50 years.

Everyone knows the prime directive of business: faster, better, cheaper.  Of course, the directive applies to service processes as well. Yet, when pressed for an explanation most can say only that it means the most work in the least time with the fewest people and fewest mistakes. 

What are the roadblocks to achieving the prime directive in services?

Responses to that question are varied but predictable: We need more people. The computer systems are lousy. The customer’s demands are excessive, etc.

If our experiences in manufacturing tell us anything, it is that objective measurements and controlled improvements create a finely tuned process with the fewest non-value-added steps.

And here’s the news: a new method, Lean Six Sigma for Services, is moving into the forefront to provide just that.

Like its industrial-strength manufacturing counterpart, Lean Six Sigma for Services uses objective, repeatable data to identify waste and complexity thus removing subjectivity from the equation.

Yet, mention “Lean Six Sigma for Services” and the response is likely a blank stare followed by a few quick responses: “Isn’t that used in manufacturing or TQM?”  “Don’t see how it applies to a service business.”  Or, worse, out pops the inevitable horror story: “I know a guy that spent a million dollars on Full Factorial Experiments. What is a Full Factorial Experiment?”

I have created an Introduction to Lean Six Sigma for Services.  This paper helps decision makers seeking a methodology best suited for service process improvement.  It is a compendium of experience, personal notes and the readings of noted authors (described in the reference section).  Inside you will find a description of Lean Six Sigma for Services – in general terms – along with a survey of the benefits, characteristics, approach, and tools.   

I hope that the information herein will clear up some of the mysteries and misconceptions surrounding this excellent approach.

Regards,

Jim Pickens


Jim Pickens is the the managing partner for DMAIC.com. http://www.dmaic.com is the complete online resource for Six Sigma consulting, training, software, books, and events.

SIPOC Diagramming for SOPs

We, as Six Sigma professionals, often assist our customers in developing Standard Operating Procedures (SOPs).  The process for gathering the needed information to develop these procedures can be tricky.  Users have difficulty in articulating procedure triggers, required inputs, procedure activity, outputs, receivers, exceptions, and inter procedure touch points.   They need a guide to help facilitate the process.

I have found it very useful to use SIPOC diagramming to solve many of these problems I face when helping customers developing SOPs.   SIPOC diagramming is a technique used by Six Sigma Black Belts for years in process improvement.   The literal translation of SIPOC is Supplier, Input, Process, Output, and Customer.
 
The beauty behind the SIPOC is that it is easy for the user to understand and helps to keep the team focused.  A procedure can be represented in one page versus the seven to ten pages in a typically written procedure.  I use the SIPOC to articulate and gain approval on the actual procedure steps.  The SOP is then drafted from the SIPOC by business writers.  The SOP is simply a representation of the SIPOC.  Therefore the document approval process is dramatically reduced.

To maximize the benefits of the SIPOC, I had to modify it slightly to include sections I refer to as “Critical Prerequisites (CPR)”, “Points of Interest (POI)” and “Inter Procedure Touch Points (IPTP).”  CPRs are used to identify what triggers the procedure and what critical prerequisites must be met before the procedure can begin.  POIs highlight information that is of a special interest.  Spending authority, warnings, special considerations, are put into POIs.  If the output of a procedure step touches another procedure, I note the output and the receiving procedure name in the IPTP.

My motto is “Always be prepared.” Therefore, based on my previous experiences, I pre-fill the SIPOC with procedure steps that normally should be followed.  I have found that the best format for preparing and publishing SIPOCS is through Microsoft Excel.  Everyone knows how to use EXCEL.   I have also found that SIPOCs simplify the development and the delivery of the training because the answer the questions that students normally ask.

I have included in this blog a SAMPLE SIPOC in Microsoft Excel format.  It is formatted for legal size paper that is easier to read in case I have to print them.  Also I always print the SIPOC with line numbers.


Regards

Jim Pickens


Jim Pickens is the the managing partner for DMAIC.com. http://www.dmaic.com is the complete online resource for Six Sigma consulting, training, software, books, and events.

Implementing a Business Intelligence Program

MedQuist is a publicly traded world leader in medical transcription services with revenues of $350 million, the largest user of speech recognition software in the world, and a virtual workforce of approximately 8,500. The company performed over 700,000 transcriptions annually. My responsibilities included IT Operations/Services, Business Process Engineering, Business Intelligence, Enterprise Project Management, and Six Sigma Process Improvement teams. My IT budget was approximately $10 million.

more

Departmental Re-engineering

The Central Policy department at a major Pharmaceutical company was not meeting management expectations relative to service levels and quality of service. Policy development was taking too long. Analysis was substandard, and the end product was poorly written. Clients were generally unsatisfied with Central Policy services and frequently complained to management.

Jim Pickens was engaged as a business process consultant to perform a current state assessment, identify needed improvements, and quickly turn the situation around (90 days).

more