Introduction

Every single enterprise is

Voice of the Customer looking for one single
( Customer Satisfaction and Innovation)
outcome

PROF I T
Voice of the
Business

Voice of the Voice of the

Process Employee
(Process Optimization) (Talent Development)
The traditional wisdom says that you
need to sell more to more customer
to increase your cash flow.
QUALITY
Voice of the
COST
Customer
Quality How to Improve it?
Cost How to control it?
DELIVERY Delivery How to ensure it?
WE MUST UNDERSTAND
QUALITY

COST
AND DELIVER WHAT OUR
CUSTOMERS NEED BETTER
DELIVERY
THAN OUR COMPETITOR
 Quality Cost Delivery
Not so long ago Good Cheap Fast
Today Perfect Free Now
(almost)
QUALITY
Failure to improve in
COST all three areas
means a loss of
competitiveness in
todays global
DELIVERY marketplace
 3 BILLION GOOGLE
SOCIAL MEDIA
MEANS THAT IF YOU SCREW UP SEARCHES A DAY

CUSTOMERS
WILL TELL EVERYONE THEY KNOW
800 MILLION ACTIVE USER
OF FACEBOOK
PLUS 140 MILLION
TWEETS SENT PER DAY
THE ENTIRE 270 MILLION
WORLD WORDS WRITTEN PER MINUTE
ON BLOGGER (2010)
 Voice of the Voice of the
Process Employee
(Process Optimization) (Talent Development)

By categorizing The employee voice

processes in high-value brings about personal
and low-value rankings, ownership and a sense
analysts begin to see of responsibility that
what is most significant employees are directly
to customers and the contributing to the
business businesss success.
P Process Excellence

R Resource Management

O Oriented to GOAL

F Financially Strong

I Innovate

T Timely Deployment of Strategies

PROCESS EXCELLENCE
ISNT JUST ABOUT LOWER
OPERATING COST
PROCESS EXCELLENCE IS
IMPROVING THE WAY THAT
BUSINESS CREATE AND
DELIVER VALUE TO
CUSTOMERS
PROCESS is about aligning our
organization to achieve SUCCESS
That means
- Less complexity
- More time
- Improved products
- Lower cost
- Increase revenue
- Better employee lives and
- Happier customer
 LEAN Six Sigma Lean Six Sigma
Streamlining Effectively LEAN accelerates Six
the process Reduction Sigma
and reducing of defects
wastes (variances) Solving problems and
improving processes is
faster and more efficient
Fast fact about Lean Fast fact about Six Sigma
Focus: Primarily on the process Focus: Primarily on the output
Emphasis: Efficiency (speed/flow) Emphasis: Effectiveness (quality)
Goal: Remove waste; improve flow Goal: Remove defects; improve perf.

History: History:
1930: Ford motor company 1800: Statistical Analysis begins
1930s: Toyota Production System 1980s: Motorola formalizes it
1990s: Lean Thinking 1990s: GE popularizes its
Lean is a philosophy
which shortens the
time between the
customer requirement
and the service built
by eliminating sources
of waste
Value-Added (VA), also called Customer Value-add (CVA) Any activity in a
process that is essential to deliver the service or product to the customer

- Must be performed to meet customer needs

- Adds form or feature to the service
- Enhances service quality, enables on-time or more competitive delivery, or
has a positive impact on price competition
- Customers would be willing to pay for this work if they knew you were
doing it
Non-value-added (NVA) or waste Activities that add no value from the
customers perspective and are not required for financial, legal or other
business reasons

Types of NVA work are endless. They include:

- Handling beyond what is minimally required to move work from value-add
to value-add activity (includes inspection, transportation, moving/storing
materials/paper work/ counting, soring, retrieving)
- Rework needed to fix error
- Duplicate work (supervision or monitoring of work, multiple signatures,
proofing, checking of calculations, inspections)
- Waiting, idle time, delays
- Multiple signatures
- See 7 wastes
Business Non-value-added (BNVA) activities that are required by the
business to execute VA work but add no real value from a customer
standpoint

Usually includes work that:

- Reduces financial risk
- Supports financial reporting requirements
- Aids in execution of value-add work
- Is required by law or regulation
7 Wastes
Once Waste is identified?
Eliminate the cause of the waste possible
Simplify the process or steps that is creating the waste
Streamline especially with complex processes
Minimize the amount of waste in the process
Inspect
Inspect Re-work Wait Transport
Transport Wait Work Reinstall
Work Work
Disconnect

Start Finish
FLOW TIME

= Value = Non-Value-Added
Added Time Time (WASTE)
The Approach
Six Sigma
What does Six Sigma do?
Reduce Defects

Improve Yield

Improve Customer Satisfaction

Higher Net Income

Continual Improvement
Performing at a Six Sigma Level
99% Good (3.8 Sigma) 99.99966% Good (6 Sigma)
20,000 lost articles of mail per hour (based on 7 articles lost per hour
2,000,000/hr)

Unsafe drinking water for almost 15 minutes 1 unsafe minute every 7 months
each day

5,000 incorrect surgical operations per week 1.7 incorrect operations per week

2 short or long landings daily at an airport 1 short or long landing every 5 years
with 200 flights/day

2,000,000 wrong drug prescriptions each 680 wrong prescriptions per year
year

No electricity for almost 7 hours each month 1 hour without electricity every 34 years
 Limitation

Lean Six Sigma: Green Belt For Internal Use Only 30

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