Implementing Lean Six Sigma in 30 Days: Implement the world's most powerful improvement methodology in 30 days
By Gopal Ranjan and Tanmay Vora
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About this ebook
Implement the world's most powerful improvement Methodology in 30 Days
Lean and Six Sigma are two of the most important developments to come out of management theory. On their own they offer clear strategies for improving efficiency and controlling quality; together they are an even more formidable prospect, providing organizations with a strategy that can bring in improvements in both, a task which can sometimes be a real challenge. Gopal Ranjan and Tanmay Vora, experienced in the fields of quality management and passionate about helping organizations drive improvement, present a clear strategy for implementing lean six sigma, giving you both the knowledge and the tools to drive improvement successfully.
Implementing Lean Six Sigma structures the implementation process over a month, and gives you clear guidance on what to do and when. Beginning with the theoretical basics of Six Sigma, it then takes you through the various stages of a Lean Six Sigma improvement program, from defining and analyzing issues with efficiency and quality, to taking the steps that can get your organization the results it needs. Practical, knowledgeable and accessible, this guide will make Lean Six Sigma your improvement methodology of choice
How can we improve? This is one of the most fundamental, but challenging, questions an organization can ask itself. It is never easy, but the ability to drive significant change that can bring positive results is immensely important for a business that wants to be successful in a rapidly growing market. Lean Six Sigma offers a way of answering this question, combining the approaches of both Lean and Six Sigma in a way that offers an opportunity for exponential improvement in a way that is manageable, flexible and sustainable. Spanning a month's implementation process, this book will take you on a Lean Six Sigma journey, where you will gain a clear understanding of the fundamental principles, and develop a clear perspective of the process as it unfolds. From defining the problems to be tackled, to their measurement and analysis, this book leads you towards the stage of innovation where you can take steps that ensure and sustain improvements.
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Implementing Lean Six Sigma in 30 Days - Gopal Ranjan
Table of Contents
Implementing Lean Six Sigma in 30 Days
Credits
About the Authors
About the Reviewers
Preface
What this book covers
Who this book is for
Conventions
Reader feedback
Piracy
1. What is Lean Six Sigma?
Six Sigma
The key concepts of Six Sigma
Accuracy and precision
Y=f(x)
Focus on defects and variation
Exponential improvement
Three Dimensions
Advantages of Six Sigma
Lean
Key concepts of Lean
Waste
Value and non-value adding activities
Process cycle efficiency
Process velocity
Advantages of Lean
The concept of Lean Six Sigma
Case study
Summary
Quiz
2. Planning the Implementation
Life cycle of Lean Six Sigma
Initiate (days 1-2)
Enable (days 3-8)
Typical distribution of various belts
Implementing your projects (day 9 onwards)
Green Belt and Black Belt projects
Replicate (ongoing)
Sustain (ongoing)
Project and program review
Communication
Summary
Quiz
3. Define (Days 9-11)
Project charter (day 9)
Voice of customer (day 10)
High-level process map (day 11)
Form team (day 11)
Checklist
Case study – the Define stage
Summary
Quiz
4. Measure (Day 12-17)
Key deliverables
Identifying key measures (day 12)
Data collection plan (day 12-14)
Clarification of objectives
Developing operational definitions and procedures
Collect data
Evaluation of sample size
Measurement system analysis (day 15)
Gage R&R
Data representation (day 15)
Pareto diagram
Bar chart
Pie chart
Histogram
Box plot
Multi-vari chart
Run chart
Control chart
A detailed process map (day 15-16)
Baseline performance measurement (day 16-17)
For discrete data
For continuous data
Case study – Measure
Summary
Quiz
5. Analyze (Day 14-19)
Key deliverables
Identification and prioritization of root causes (day 14-17)
Cause-and-effect diagram (day 14)
Data analysis (day 14-15)
Process analysis (day 16-17)
Hypothesis testing (day 18-19)
Hypothesis testing examples
Case study – analyze
Summary
Quiz
6. Improve (Days 20-25)
Key deliverables
Generate ideas (days 20-21)
Brain storming
Affinity diagram
Force field analysis
SCAMPER
Select ideas (day 22)
Implement solutions (days 22-24)
Work-breakdown structure (WBS)
Gantt chart
Risk assessment and mitigation
Some Lean manufacturing tools
5 S
Kaizen
Mistake proofing
Validate solutions (day 25)
Case study – improve
Summary
Quiz
7. Control (Days 26-30)
Key Deliverables
Process-monitoring plan (days 26-29)
Control charts (days 27-29)
Control charts for continuous data
Control charts for discrete data
Project documentation (day 30)
Case Study – Control
Summary
Quiz
8. Best Practices and Pitfalls
Best practices
The power of stretch goals
Ready-aim-fire
In God we trust, all others must bring data
Tangible targets linked to financial measures
Variation is the voice of the process
Celebrate achievements
Involve the owner of the process
Project goals should be aligned to organizational goals
Pitfalls
Our process is so different
Relying blindly on data
Projects with too large a scope
Needless use of statistics and tools
Part-time Black Belts
Over training
Inflated opportunity counts
Inadequate use of automation or technology
Summary
Implementing Lean Six Sigma in 30 Days
Implementing Lean Six Sigma in 30 Days
Copyright © 2014 Impackt Publishing
All rights reserved. No part of this book may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, without the prior written permission of the publisher, except in the case of brief quotations embedded in critical articles or reviews.
Every effort has been made in the preparation of this book to ensure the accuracy of the information presented. However, the information contained in this book is sold without warranty, either express or implied. Neither the author nor Impackt Publishing, and its dealers and distributors will be held liable for any damages caused or alleged to be caused directly or indirectly by this book.
Impackt Publishing has endeavored to provide trademark information about all of the companies and products mentioned in this book by the appropriate use of capitals. However, Impackt Publishing cannot guarantee the accuracy of this information.
First published: October 2014
Production reference: 1251014
Published by Impackt Publishing Ltd.
Livery Place
35 Livery Street
Birmingham B3 2PB, UK.
ISBN 978-1-78300-034-0
www.impacktpub.com
Cover image by Jarek Blaminsky (<[email protected]>)
Credits
Authors
Gopal Ranjan
Tanmay Vora
Reviewers
Professor V. K. Garg
Alaeddin Hallak
Sarabjeet S. Kochar
Sidhartha Mukherjee
Acquisition Editor
Richard Gall
Proofreaders
Simran Bhogal
Ameesha Green
Paul Hindle
Copy Editors
Tanvi Bhatt
Maria Gould
Paul Hindle
Alfida Paiva
Faisal Siddiqui
Project Coordinator
Priyanka Goel
Production Coordinator
Melwyn D'sa
Cover Work
Melwyn D'sa
About the Authors
Gopal Ranjan has extensive experience in developing breakthrough improvements and quality management systems. He is a certified Six Sigma Master Black Belt with more than 16 years of experience in the design and deployment of Lean Six Sigma methodology across different organizations. He is also a certified Balanced Scorecard Practitioner. He is also the Lead Auditor on ISO 9001 and ISO 27001 standards. He holds a BTech degree from India's prestigious Indian Institute of Technology, BHU, Varanasi, as well as a Master's degree in Business Administration in Finance. He is also a practicing NLP practitioner and holds a Master's degree in Psychotherapy and Counseling. He regularly writes articles and columns on varied subjects including management, science, psychology, and philosophy for newspapers and magazines. Currently, he heads the Quality function of one of India's foremost IT services companies, Datamatics Global Services Ltd. He can be reached at <[email protected]>.
This book has benefited from the support of a large number of people. I apologize for not listing them all. A few people played a major role in making this book happen. First of all, I would like to thank my parents who always believed in me and encouraged me to explore new horizons and kept the tap of curiosity open. My wife, Anupam, who always stood by me and provided critical feedback about the content and the structure of the book. My elder brother, Rajeev, who always goaded me to pen down a book. My editor, Richard Gall, who went through the manuscript patiently many times and provided valuable assistance throughout the writing process. Our coordinator, Priyanka Goel, who ensured that everything was in order and the project was on time. Last but not least, my young daughters, Kashvi and Advika, for providing the pep and energy to bring the book to its logical conclusion.
Tanmay Vora is a quality professional who has 15 years of diverse IT experience leading corporate quality programs, growing software testing teams, providing process consulting, and driving improvement initiatives. He currently leads a corporate quality program at CIGNEX Datamatics where he spearheaded certification initiatives such as CMMI Level 3 and ISO 27001 (Information Security).
At QAspire Blog, which he founded in 2006, Tanmay combines his passion for writing with his deep interest in excellence, people, leadership, and human aspects of building a culture of excellence. He recently wrote his first book titled #QUALITYtweet – 140 bite sized ideas to deliver quality in every project, THINKaha, and he regularly contributes his writing to various blogs, magazines, and books. In 2012 and 2013, he was rated as one of the Top 5 Indian HR Influencers on Social Media by the Society of Human Resources Management (SHRM India).
Tanmay tweets as @tnvora and can be contacted at <[email protected]>.
This book was not possible without the subject matter expertise of my co-author Gopal Ranjan. I totally appreciate his constant support and guidance.
My family has been a constant source of inspiration for me and I am grateful for the love and encouragement they provide in all my endeavors, including this book.
Thanks also to my editor, Richard Gall, for reviewing the manuscript, and the members of the Packt Publishing team who collaborated with us to make this book happen.
About the Reviewers
Professor V. K. Garg carries with him over 35 years of experience in the fields of information technology, management consulting, and academics. He has been on the boards of various companies for over 10 years and has worked with well-known organizations such as A F Ferguson, Larson and Turbo, Zenith Computers, NITIE, Lupin Laboratories, Rolta, Datamatics, and others. He is an acknowledged authority in the various areas related to project management. He has also been associated with various World Bank sponsored projects as an expert.
As a corporate trainer and consultant, he is associated with many leading IT organizations and institutions. He is the brain behind two of the training programs that have been highly appreciated by various State Electricity boards and Public Welfare departments around Project Identification Formulation and Appraisal (PIFA) and Project Implementation Monitoring and Control (PIME) with the help of World Bank. His training programs are well recognized, widely accepted, and attended by senior and middle management personnel from diverse industries and government agencies. He is a much sought after trainer, and his diverse disciplinary experience equips him with a wide perspective and deep insights into the challenges and issues of the business world.
Professor Garg is also a certified Six Sigma Master Black Belt and has been the guiding force behind over 200 Six Sigma and Lean Six Sigma projects in various organizations for more than 10 years.
He is the author of two best-selling books—Enterprise Resource Planning, and Workbook on System Analysis & Design, both published by Prentice-Hall of India Publications. Both these books have run into multiple editions. He also has to his credit numerous articles and research papers that have been published in leading journals and conference proceedings.
Prof. Garg is a gold medalist in Bachelor of Engineering and an MTech from the prestigious Indian Institute of Technology (IIT), Delhi.
Alaeddin Hallak is a senior business analyst and a Six Sigma Green Belt at HP Enterprise Services. He currently leads the business analysis team at SADAD Payment System, Saudi Arabia's national payment gateway that handles over 90 percent of the Kingdom's payment transactions. Previously, he was the lead BPM specialist for several Saudi government institutions including the General Authority of Civil Aviation, Jeddah Municipality, and Royal Commission for Jubail and Yanbu.
A graduate of Computer Science from the Jordan University of Science and Technology, Alaeddin holds several industry qualifications in business