DP-004 THE LEAN ENTERPRISE.pptx

CERTIFIED LEAN SIX SIGMA DEFINE PHASE  INTRODUCTION This course has been designed to build your knowledge and capability to improve the performance of processes and subsequently the performance of the business of which you are a part. The focus of the course is process centric. Your role in pro...

CERTIFIED LEAN SIX SIGMA DEFINE PHASE  INTRODUCTION This course has been designed to build your knowledge and capability to improve the performance of processes and subsequently the performance of the business of which you are a part. The focus of the course is process centric. Your role in process performance improvement is to be through the use of the methodologies of Six Sigma, Lean and Process Management. By taking this course you will have a well rounded and firm grasp of many of the tools of these methodologies. We firmly believe this is one of the most effective classes you will ever take and it is our commitment to assure that this is the case. ​ DEFINE PHASE THE LEAN ENTERPRISE  THE LEAN ENTERPRISE “Lean Enterprise is based on the premise that anywhere work is being done, waste is being generated. The Lean Enterprise seeks to organize its processes to the optimum level, through the continual focus on the identification and elimination of waste.” -- Barbara Wheat THE LEAN - HISTORY HISTORY OF LEAN WHAT IS LEAN SIX SIGMA?  LEAN, SIX SIGMA & LEAN SIX SIGMA Lean means creating value for Six Sigma is a disciplined, data customers with fewer resources. A driven approach and methodology Lean Organization understands for eliminating defects (driving customer value and focuses its key towards six standard deviations processes to continuously increase between the mean and the nearest it. The Ultimate goal is to provide specification limit) in any process at perfect value to the customer 3.4 Defects per million for through a perfect value creation manufacturing to transactional and process that has zero waste. from product to service.  LEAN SIX SIGMA Lean Six Sigma combines the strengths of each system: Lean Six Sigma – Guiding principles-based – Focus on voice of the operating system customer – Relentless elimination of – Data and fact-based all waste decision making – Creation of process flow – Variation reduction to near and demand pull perfection levels – Resource optimization – Analytical and statistical – Simple and visual rigor Strength: Efficiency Strength: Effectiveness An Extremely Powerful Combination!  HONEYWELL & DOW RESULTS "We achieved $600 million in Six Sigma cost savings in 1999, but cost savings are only one part of the story. Delighting customers and accelerating growth completes the picture. When we are more efficient and improve work-flow throughout every function in the company, we provide tremendous added value to our customers–through higher quality solutions that are more competitively priced, delivered on time and invoiced correctly. That makes us a more desirable business partner.“ - Honeywell 1999 Annual Report http://www-a.honeywell.com/investor/ar99_intro_smarter.html "We expect Six Sigma to elevate our company to an entirely new level of operational performance, delivering $1.5 billion in EBIT cumulatively by 2003 from the combined impact of revenue growth, cost reductions and asset utilization.“ - Dow 1999 Annual Report http://www.dow.com/financial/99ann/letter03.htm  GE & DUPONT RESULTS "The Six Sigma initiative is in its fifth year — its fifth trip through the operating system. From a standing start in 1996, with no financial benefit to the Company, it has flourished to the point where it produced more than $2 billion in benefits in 1999, with much more to come this decade.“ - GE 1999 Annual Report http://www.ge.com/annual99/letter/letter_three.html "Six Sigma implementation continues to gain momentum. At the end of the year 2000, there were about 1,100 trained Black Belts and over 3,400 active projects. The potential pretax benefit from active projects was $700 million.“ - DuPont Fourth Quarter and Full Year 2000 Earnings Report http://www.dupont.com/corp/whats-new/releases/01/010124.html  PROJECT REQUIREMENTS FOR LEAN Perhaps one of the most criminal employee performance issues in today’s organizations is generated not by a desire to cheat one’s employer but rather by a lack of regard to waste. In every work environment there are multiple opportunities for reducing the non-value added activities that have (over time) become an ingrained part of the standard operating procedure. These non-value added activities have become so ingrained in our process that they are no longer recognized for what they are, WASTE. waste (v.) Anything other than the minimum amount of time, material, people, space, energy, etc needed to add value to the product or service you are providing. The Japanese word for waste is muda.  13 THANK FOR YOUR ATTENTION!!! YOU