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3 Ways to Improve Fleet Operations with Six Sigma

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six sigma

Many people in the logistics industry fail to realize just how important it is to optimize transportation and how much value improving fleet operations offers to the overall performance of a business. In spite of continually rising costs, ineffective utilization of logistics assets is a widespread problem and is characterized by haphazard and inefficient routing as well as empty backhauls after delivery runs have been made.

At the heart of the issue is the lack of total visibility throughout the transportation network and a lack of planning and strategy, connectivity and collaboration. It is possible to achieve all of the above by taking advantage of Six Sigma strategies alongside transportation management software.

Nowadays, fleet operations systems are built with the purpose of minimizing the risks of vehicle investment, lowering staff and transportation costs, increasing productivity and reducing inefficiency. The result is general optimization of an organization’s fleet management processes. Here are three ways to improve fleet operations using Six Sigma:

  1. Fleet Operations Planning

Since fleet operations management has an essential role within planning and execution of transportation, optimization of your corporate logistics network is one way to increase profitability without having to compromise efficiency. When optimizing fleet operations with Six Sigma methodologies, two main areas are examined: shipment planning and optimization of dispatch.

Through effective shipment planning, your organization will find it easier to create efficient loads that fit in with your scheduling process while maximizing utilization of assets and ensuring compliance with industry regulatory requirements. On the other hand, dispatch optimization is an ongoing process which allows for ongoing evaluation of resource assignments and allocation of loads on the basis of real time data on events and conditions.

When used together, these two capabilities help to ensure that you have all-round visibility and integration of the whole logistics network, helping your business and its network of carriers to manage their fleet operations in a more efficient and productive way. For instance, optimization of route assignments from the outbound end and at the supplies end as well reduces the occurrence of empty backhauls.

  1. Use of Fleet Telematics

The use of telematics is continuing to change how many fleet operators conduct their operations. Telematics work by vehicle performance information, diagnostic data and driver actions in order to give businesses a complete picture of the performance of the fleet on a daily basis and in real time.

A key advantage to be gained by using telematics is that your in-house fleet management team gains a greater degree of control over the process. The team can help you to then determine whether there are drivers who are not performing to the standards you expect. Telematics also help your team to develop more efficient methods of delivery by using the data obtained to design faster routes for them to use.

  1. Committing to a Reduction in Fuel Cost by Eliminating Waste

There are several different techniques which you can use to limit your organization’s long-term fuel costs and reduce wasteful use of your fleet. Although fuel costs will almost certainly continue to rise, you can use fleet monitoring applications and tools to find out which vehicles are consuming an inordinately high amount of fuel. These tools may also be used to figure out the most effective routes that drivers can use, reducing mileage costs in the process.

Another way in which your company can commit to lowering its fuel costs is through retraining of drivers in the use of more fuel efficient driving styles. If a company takes a proactive stance towards reducing fuel consumption by its fleet, operations can continue at a high level of efficiency for years to come.

Conclusion

Your organization’s business and your fleet have different characteristics and needs from anyone else’s, which means that you also need to devise custom fleet operations procedures that reduce waste, save costs and maximize your profits. Through continuous improvement of existing fleet management practices, Six Sigma allows your fleet to operate on the cutting edge of efficiency.

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[VIDEO] Lean Construction Methods Transform the Industry

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construction, lean

The construction industry has been mired in an environment that has been siloed and antiquated for years. The view has been that things have always been done a certain way and there is no reason to change. Meanwhile, numerous industries have embraced lean methodologies and have significantly reduced waste, improved efficiency and delivered higher quality products which meet or exceed customer expectations. Surveys show that at least 50% of processes involved in planning and construction are wasteful. The industry has adopted lean construction methods, which are starting to change an industry that lagged behind others.

Learn more here about lean construction!

 

 

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Lean Construction Methodologies Lay a New Foundation

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construction, lean methodologies

Lean construction extends the methods of lean manufacturing to the construction industry by maximizing value and minimizing waste. The industry has quickly recognized the need to improve their processes to keep pace in an ever-growing environment. Recent studies by the industry have shown that 50% or more of effort in a built environment is non-value added, or waste. 

Relationships in the industry are based on respect and reputation. Providers rely heavily on reputation and word-of-mouth for their continued business. Applying lean methodologies to the industry, organizations can maximize every aspect of their process, from design to supply and construction of capital facilities. The concept of lean construction produces significant improvements to complex design and projects. The industry has historically been an extremely siloed industry, which has severely constricted every aspect of process, from communication, design and building. Lean construction is making significant progress in eliminating those siloes and eliminating waste.

Lean construction recognizes that what the customer values is much deeper than simple planning and building. They have vision and values they want to see in their project, and want to be accurately represented in the final construction. Lean methodologies allow the industry to focus more on value from the customer’s point of view, which requires a different level of trust, established very early in the planning phases of a project. The industry is not immune to the tendency to stick to old ways and resist change, but the many benefits of the Lean approach are compelling more and more firms to take on the challenge. When projects come in on time, on budget, and with exactly the vision and value the customer expected, it is a win!

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Using Lean Six Sigma to Achieve Operational Excellence

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operational excellence

OpEx and Six Sigma make for a powerful combination. The concept of Operational Excellence (OpEx) has been around for almost two decades. In the most basic terms, OpEx is a way of looking at a business as a whole rather than considering its individual parts separately.

Using the principles of Lean Six Sigma and Operational Excellence can help in the selection and assessment of the right projects that are in line with your business strategy. This is vital to the long-term success of any business.

Understanding OpEx

The approach represents a management philosophy that helps create and sustain a workplace culture built around continuous improvement as the guiding light. It aggregates all activities around a singular vision. Ultimately, the technique helps drive innovation and builds values apart from the obvious reductions in cost.

OpEx, in fact, forms a foundation of the Six Sigma principles. Striving for achieving Operational Excellence through the principles of Lean Six Sigma helps exceed customer expectations while dramatically improving quality.

The use of OpEx helps sustain a system that will ensure continuous improvement at all levels. However, all Op Ex activities might not relate with cost reduction. Businesses have been using OpEx to streamline their processes and provide the best quality products and services while incurring the lowest possible costs.

Plan of Action

It is all about execution. Businesses need to have a clear plan of action to implement their business plan that includes all essential OpEx elements. Businesses can also use the services of a partner to help them implement OpEx strategies in the best possible way.

The key to a great framework involves the use of tools such as Lean, Kaizen, and Six Sigma. Other methods might also be used in this process. It is essential for all these methodologies to work in unison for the framework to function successfully.

Businesses need to be aware of these methodologies and consult professionals who hold certifications before opting for these.

People-Centric Process Improvement

Businesses must use the principles of Lean Six Sigma and OpEx in addition to following a people-centric approach to process improvement.

Many businesses only focus on statistical tools. However, it is important for industries to pay attention to the people. Experts call this approach “people-centric process improvement.”

Incorporating the LSS approach will be based on understanding the needs of your customers first. Businesses should aim to exceed these. It is important to focus on quality improvement and reduction in defects and errors.

It is essential to eliminate the wastes from the processes and simplify operations to make them easier.

LSS For Continuous Improvement

Focus on sustainable excellence and growth. The use of the Lean Six Sigma methodology can help generate process improvement that is self-sustaining in nature. It does so by catalyzing motivation from within.

Adopting such an approach results in an optimization of the entire system. It also helps foster a culture of sustainable and continual learning and improvement.

From Voice of Customer to Global Supply Chains

Businesses must translate the Voice of the Customer (VoC) throughout the global supply chains. This helps to improve productivity and quality dramatically along with the shareholder economic value added (EVA).

Failure is often self-induced and is the result of poor leadership. It is caused by a business’s inability to execute its vision in an effective manner.

Organizations can use the principles of Lean Six Sigma to enhance competitiveness. Performance is also related to financial and operational productivity in addition to the technological, geographical, cultural, and economic isolation. It is also further correlated with the shareholder EVA metrics.

Conclusion

Operational Excellence focuses on improvements in the organization as a whole rather than segregating it into its parts. It is essential for each and every individual in the business to be involved in the process to be successful. The use of LSS principles helps Op Ex focus on the customer’s needs and keeps the workforce geared towards continuous development.

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[VIDEO] Building the Porsche 911

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lean manufacturing, porsche 911

When you talk about speed, one of the first cars that comes to mind is the iconic Porsche 911. Since 1963, Porsche AG of Stuttgart has been building the 911 (better known in German as the ‘Nuenelfer’) and making history with the famous sports car. The 911 is two door, six-cylinder rear engine speedster that has retained its classic concept since inception. In 1999, an international poll recognized the Porsche 911 as one of the top five cars of the century. As of May 2017, the 911 was recognized as the oldest sports coupe still in production, and Porsche proudly celebrated with one million vehicles made.

Hold on tight and watch the Nuenelfer being built!

 

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[VIDEO] Lean Factory Tour of Seating Matters

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lean manufacturing, kaizen

Seating Matters was established to improve patients’ lives and to influence clinical best practices. Their mission was to create chairs that would cater to the holistic needs of patients by providing comfort, postural support and pressure management. Their chairs have been designed by therapists and clinicians and supported by independent clinical evidence, proving their ability in helping to solve a range of clinical problems through seating. The goal of Seating Matters and the Tierney family is to make a difference to patients’ quality of life by reducing pressure ulcers, improving posture and enhancing quality of life.

Get comfortable and enjoy the tour here!

 

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5 Reasons Why Companies Do Not Implement Lean Six Sigma

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lean six sigma

Most businesses and manufacturers have heard of the Lean and Six Sigma strategies. In fact, businesses around the world have been using these extremely powerful tools for years now. They have helped in process improvement and increased business productivity. Overall, they resulted in a richer customer experience.

However, it is unfortunate that many businesses have yet to discover the true value of Lean Six Sigma. There are, in fact, several reasons companies do not use Lean Six Sigma. While some reasons are genuinely valid, others are mere misconceptions that need to be done away with.

 

  1. Lack of Information and Awareness

More often than not, businesses shy away from using the Lean Six Sigma approach because they do not really know what it is all about. While it might seem surprising that there are still organizations that have not heard of the Six Sigma approach, it is quite believable indeed considering that the approach has been widely used in the manufacturing circles with less exposure outside.

Learning, they say, is a journey, not a destination. It is never too late to begin with a new process that holds limitless possibilities and is proven to be useful for long-term success. You should not worry about not using the approach because you do not have the expertise and tools in place. It is best to start by doing and learning along the way.

 

  1. LSS Is Not Just for Large Companies

This is a very widely held misconception. Many businesses believe that the approach is only suited to enterprises and large companies. This is completely untrue. Even the smallest companies with fewer than 10 employees use the methodology to improve their processes and streamline their services.

At other times, companies might just choose Lean and leave Six Sigma behind. However, the two approaches work hand in hand and used together, can remove the shortcomings of each. The Lean principles speed up business output while the Six Sigma approach helps improve quality.

 

  1. Implementing These Need Not be Expensive

Some businesses stay away from the Lean Six Sigma approach thinking that it involves exorbitant costs. Actually, the process can be started by a few chosen key personnel with a Yellow Belt training. It is easy to get started with using the Six Sigma approach with even a basic understanding of the process. As said earlier, it is important to begin and learn along the way.

 

  1. LSS Is Not Just For Manufacturers

This is one of the biggest misconceptions. While the approach was first used by manufacturers to reduce waste, it is now a universal process that is used everywhere. It is considered useful in service and transaction environments which involve recurring processes.

 

  1. Fear of Change

This is one of the most common reasons many enterprises do not adopt the LSS technique. The fear of the unknown stops businesses from reaching greatness. This is similar to the case with lack of information and awareness. It is best if businesses educate themselves and make themselves aware of the developments in this field to better understand the process and approach.

Often, businesses are just too stubborn to move away from existing methodologies and think about newer ones that promise rewarding results.

At other times, businesses might think that the LSS approach involves complex mathematics and statistical analysis. However, LSS is not just about mathematics and statistics. This is a rich process that offers businesses invaluable insights, helping them improve processes while continuously striving for customer satisfaction.

Conclusion

The Lean Six Sigma approach is an extremely powerful tool that has already proven its mettle in a number of industries and sectors. However, there are still several misconceptions that prevent businesses from benefitting from the power of this wonderful methodology.

It is important for businesses to consider the tools with an open mind and embrace the techniques in areas where they can particularly help improve customer experience.

 

The post 5 Reasons Why Companies Do Not Implement Lean Six Sigma appeared first on Shmula.

Are You Applying Kanban for the Wrong Reason?

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kanban

In the most basic terms, Kanban is an innovative technique that is used in project management. The technique allows teams to be more productive and makes the processes much more streamlined. The word “Kanban” derives its origins from the Japanese “kan” which means “visual” and the word “ban” which means “card.”

Kanban has become a highly popular Agile tool. It is widely used by businesses and is particularly useful for certain software projects. However, there are several situations where Kanban use does not match the instance for which it is being used.

The Kanban Approach

Kanban basically helps manage the creation of products while emphasizing on continuous delivery. It aims to relieve the development team of any burdens. Kanban, like Scrum, helps teams work in a more efficient way.

The process involves three key principles.

  • It is important to visualize what you are doing at present. Considering all business aspects and items in the context of each other can be a very informative exercise.
  • Put a limit on the amount of work in progress you are handling. This will help enforce a balance so teams do not overstrain and work too much at any time.
  • The third aspect enhances flow and involves picking up the next thing highest in the list of backlogs when the task at hand is finished.

Basically, the approach helps foster continuous collaboration and encourage active learning. It helps define the best possible workflow for maximal efficiency.

The approach, therefore, is expected to have several advantages.

  • It results in shorter cycle times and timely feature deliveries.
  • Kanban is ideal in environments where the priorities keep changing continuously.
  • It helps to respond to change in an efficient manner.
  • Reduces the waste and activities that do not add any value to the business.
  • Motivates and empowers teammates who perform higher by having rapid feedback loops in place.
  • Balances demand and throughput. This helps work on the most customer value-centric features.

Wrong Reasons to Use Kanban

Businesses might be using the Kanban approach for all the wrong reasons without even realizing it. We examine below several such instances in which the approach probably isn’t the best fit.

  • Kanban is not the best way to deal with varied story sizes. The teams should instead be taught to split the stories into smaller tasks.
  • Using Kanban will not increase your speed with which you generally progress through your tasks. If you are unable to finish a story in one iteration, that certainly does not spell out a need to use this approach.
  • It is sometimes easier to form cross-functional teams and ending multi-tasking approaches. Kanban might not always be the best solution from team stability considerations.
  • Kanban’s simplicity is often the reason why businesses use it as a solution to all management challenges and issues. You will undoubtedly have to work hard and face a lot of problems.

The Right Reasons to Use Kanban

Let’s now examine closely the right situations where Kanban can be used to increase efficiency, improve processes, and remove waste while responding to ever-changing priorities.

  • Allows priorities to be continuously changed. This is something Scrum does not lend itself to easily.
  • Helps release items at any time, which is not often possible with other iterative methods and techniques.
  • Helps realize and visualize the best workflows. The approach can be used when a business needs insights into its current operations and the stage the project is presently in.

Conclusion

Kanban is easily used in a number of business situations but is not the one size fits all solution for all business challenges. It is easily used when there is a need to model the whole value stream or when there is a need to respond rapidly to continuously changing priorities.

It ultimately helps foster continuous improvement. The best way to choose the ideal method for business process improvement is to first consider what it is that you wish to improve. This will help choose the most suitable approach rather than using one tool to solve all problems.

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Why Performance Reporting is Essential to Lean

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Performance reporting is an essential part of the lean strategy. Businesses need to understand their performance levels by assessing and reporting their goals, targets, and objectives continuously. Following these measurements and reports, adjustments and decisions can be made in accordance with the lean methodology.

Establishing Benchmarks

Performance reporting can help establish benchmarks that can be used as baselines for further performance results and measurements. Benchmarking practices help businesses open up to new innovations and methods to improve efficiency while increasing the level of customer satisfaction.

Benchmarking is a great tool to identify the specific challenges that the business faces and takes out guesswork from the equation. It is also a powerful way to prioritize the opportunities for improvement.

Measuring and Monitoring the Workforce

It is essential for businesses to use KPIs (Key Performance Indicators) for continuous improvement.  This is a great way to control the behavior of the workers and their actions.

Employees, too, can use this method to exactly find out where it is that they are failing and the ways to correct the errors. This ultimately helps improve performance and strengthens cohesion between the employer, the management, and the subordinates.

Lean Performance Reporting

Conventional operational reporting involves the use of dashboards to allow managers to make trade-offs, examine circumstances, and respond to specific business issues.

However, reporting ‘lean’ can be a challenge. This involves highlighting the information that is most critical to operational performance management. Performance reporting should also simplify and eliminate any processes that do not create any added value.

A lean reporting tool focuses on what happened during the quarter/month and also explains how and why the said event occurred.

  • It is important to map the existing reporting and circumstances.
  •  Helps analyze the gaps between the existing production levels and the actual business needs.
  •  Enables use of business intelligence tools if needed.

Improved Communication

Performance reporting will help improve communication between the managers, investors, customers, and subordinates. It helps improve customer insights and allows key stakeholders to focus on the best sales opportunities.

It makes business partner activities more visible and allows senior managers to understand the needs of the employees. Consequently, workplace conflicts are reduced. It also helps increase customer confidence and the clientele base.

The Ideal Performance Report

The ideal performance report should consider and include several factors:

  • Analysis of the business’s past performance
  • An assessment of the current status of risks
  • Summary of the changes approved during the reporting period
  • Projects completed during the reporting period
  • Current project completion forecasts
  • Variance analysis results

The business report is an extremely important document that presents valuable information about the business. The report is particularly written to attract investors to the business. The other purpose of the report is to keep the workforce aware of the main achievements and objectives of the company.

During the performance reporting process, the results of the various processes are analyzed and then combined into performance reports. These are presented in tabular and graphical formats that are either based on text, visuals (charts, tables, and graphs) or a combination of them all.

Performance reporting and measurement together include several different phases, namely, information collection, analysis, and reporting.

Conclusion

Performance reporting is an essential component of the lean methodology. It allows businesses to collect and disseminate project information and communicate project progress as well as predict future routes.

Lean process reporting techniques focus on removing processes that can be best done away with. Reporting also assumes prime importance in project communication management. Businesses should rely on measuring the Key Performance Indicators (KPIs) for evaluations in an objective manner.

Performance reporting also helps improve communication between team members and helps drive increased customer satisfaction levels. The report is basically aimed at the investor, seeking his participation and support in the business endeavors. Secondly, the report helps keep all employees aware of the current business status and the roadmap ahead.

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4 Reasons for Operational Excellence (OpEx) Failure

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operational excellence

Operational Excellence (OpEx) finds its origins in the principles of total quality management. Keeping certain aspects in mind can help OpEx deployments succeed. Having a clear vision and purpose for your deployment is most important. Maintain a strong focus on the creation of customer value. In fact, it is recommended to measure the factors that add value to customers and balance these with cost reduction goals.

However, as many as two-thirds of OpEx programs, experts estimate, fail to realize their expectations. There are several possible reasons for the failure of OpEx programs that are enterprise-wide in their scope, which we will consider in this article.

1. Following the Wrong Approach

Following the wrong approach is one of the most important reasons for failing OpEx programs. To be successful, OpEx needs attention to the cross-functional processes. However, many businesses implement the program along departmental lines. While this helps improve the small processes inside the departmental limits, it leaves a lot of monetary resources on the table. The approach does not address the end to end and large processes that can really create a lot of value for the customers.

If people in your business talk more about the methods and tools used rather than the results, this is a telltale sign of a problem with OpEx implementation approach. Ask yourself some questions to figure out if your business is using the right approach to OpEx.

Consider if your program focuses on the large cross-functional process involvement projects. Does the program use steering teams, which can guide and govern large projects? Are there visible recognition programs for the teams that create customer value through process improvement approaches? Furthermore, consider the involvement of the IT team.

2. Lack of Clear Purpose

Simply following in the footsteps of your competitors and initiating an OpEx program because they have chosen to will always create problems.

There should be a clear reason for you to adopt the approach. This should include a strong CTA (Call to Action) and a strong case for change.

3. Misplaced Focus Areas

Most OpEx programs primarily aim to reduce costs and apply tools such as Lean or LSS. Organizations should, apart from cost reduction, also take into consideration the quality of their products and services along with improving the customer experience.

There needs to be a balance between adding customer value and reducing the costs for greater success with implementing an Operational Excellence program. Consider having an up-to-date and concise customer journey model. Also, evaluate the metrics that the business leadership primarily uses.

It is also important to consider the top goal for most of the OpEx programs in your business.

4. Failing to Focus on People

It’s not processes that do actual work, it is people. Organizations that aim to shift their culture should pay more attention to the people. This entails recognition mechanisms to promote cross-department collaboration, change management integration into projects, and cross-training.

It is imperative to have visible recognition programs for the team members who help create customer value through the right process improvement strategies.

Conclusion

Analyze all of the failure points and the patterns that led to them. Examine the assumptions that led to the decisions that were earlier made. You need to brainstorm and consider how such mistakes could be avoided in the future decision-making processes.

It is of critical importance to examine the causes of failure in great detail so that those mistakes can be avoided later. The failures can assume different forms— while some can be potentially disastrous, the others could be life-threatening too.

Most businesses do not realize that their OpEx deployments are destined to fail before they are even initiated. Focusing on the people, using the right strategies, and having a clear purpose in mind will help your business climb the ladder to success.

 

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Understanding the Six Sigma Methodologies: DMAIC vs DMADV

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six sigma

DMAIC and DMADV are two of the most common Six Sigma methodologies in use today. Businesses frequently rely on them to produce high quality with minimal defects while meeting the expectations of customers. While both are designed to help businesses to be more effective and efficient, they are certainly not interchangeable and are optimized for different process types.

Let us examine and similarities and differences between the two tools and see how businesses can decide the best strategy for optimizing their processes.

DMAIC vs DMADV: The Similarities

Let’s first see a basic overview of these two methodologies before we begin to compare them. DMAIC involves Define, Measure, Analyze, Improve, and Control phases while DMADV involves the phases of Define, Measure, Analyze, Design, and Verify.

There’s no denying the fact that DMADV and DMAIC have a number of similarities. Both these techniques use statistical tools to propose solutions to quality-related problems.

They are implemented by Green, Black, and Master Black Belts and target a reduction of defects to less than 3.4 per million available opportunities in accordance with the term ‘Six Sigma’ itself. They both propose data-intensive solutions that derive from hard facts.

The Differences Between DMAIC and DMADV

The major differences between the two tools come in the way they handle the final two steps. In the case of DMADV, the Design and Verify phases involve the redesign of a process to meet the needs and requirements of customers.

This is in contrast to the Improve and Control Steps of DMAIC where the focus is on controlling and adjusting the process. In a nutshell, while DMAIC defines business processes and their applicability, DMADV focuses on customer needs and their relationship with products and services.

Let’s now consider how the tools handle measurement. DMAIC measures current performance while the DMADV technique measures customer needs and specifications. While DMAIC uses a control system to monitor the future performance of the business, DMADV proposes a business model whose efficiency can be verified through simulations.

In conclusion, DMAIC will help improve business processes to remove or reduce defects, while DMADV will help shape a business model that can meet the requirements of the customers.

When to Use Which: The Nature of the Project

It is critical to first determine the nature of your project to be able to choose from amongst the Kaizen, DMAIC, and DMADV methodologies. Businesses need to have a process in place that can help determine whether a project should be directly implemented or if the DMAIC, Kaizen, or DMADV methodology can contribute value.

If you have new product and service designs at hand, it is best to consider DMADV. However, this methodology might not always be the best to work with when considering the existing processes and products. If you do not have any existing product at all, you could use DMADV to implement the design of the product.

Experts recommend using DMADV when you are dealing with a process improvement that does not meet expectations.

DMAIC, on the other hand, works with pre-existing products and processes that no longer meet customer needs.

The best step forward, if a business does not possess in-house Six Sigma expertise, is to seek the support of Six Sigma Master Black Belts and Black Belts who can help make the decision between DMADV and DMAIC.

Conclusion

Six Sigma is a very powerful methodology that can help minimize defects and meet customer needs and expectations. However, choosing between DMAIC and DMADV can be a challenge at times even for businesses that possess Six Sigma expertise.

It is highly advisable to consider first the nature of the project you wish to apply the tools to. Businesses must have a mechanism in place that could determine the best step forward— proceeding directly or using one amongst the two methodologies, as the case may be. Six Sigma experts and Black Belts too can offer valuable insights into this matter.

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Getting Top Management to Support Lean

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It is imperative for the top management of any business to have a thorough knowledge of true lean principles. A basic knowledge of lean tools, however, does not suffice.

In a nutshell, the lean principles focus on respect for people, continuous improvement at all levels, and a continuous focus on delivering customer value. This, however, necessitates a transformation in leadership as well.

Lean strategies can only be truly effective if they are accompanied by effective lean management. The latter helps champion the lean principles, provides valuable insights and guidance, and ensures that the principles of the methodology are being used to optimize the system as a whole.

Lean Management and Support

There are various tools and techniques that the leaders and executives of businesses can adapt to transform themselves into lean managers and help contribute the most value to the customer.

  • The senior executives should learn to standardize their information flow and believe in the practice of eliminating waste.
  • The top management should continuously observe the work done as a routine task.
  • They need to reinforce appropriate behaviors and highlight them everywhere.
  • If there is a need for change, communicate it to the entire business and ensure that the whole team understands.
  • It is important for managers to actively engage themselves in the day-to-day affairs of the business. They need not just support the other employees, but be there out in the front to lend a helping hand whenever required.
  • The top management should provide continuous support and stay committed to the values of the business.
  • Lean managers need to shift their mindset. From a supervisor, they need to shift their role to a teacher and a coach. Lean leaders lead gently and by example.
  • The management must ensure that the principles are used with the right goals in mind. It is essential to maximize the delivery of value to the customer in a sustainable fashion.
  • Lean businesses focus on continuous improvement and experimentation. They know that the people dealing with the product are the ones with the best ideas for improvement and thus listen to every idea with an open mind.
  • Do not spend unnecessary time in long feedback loops up and down the organizational structure. Ensure decisions are made in a timely manner.
  • It is essential to understand the important variation management and good tolerance to achieve greater value and cost-effectiveness.
  • Lean leadership can help bridge the gap between the tools and a continuously improving and self-sustaining organization.
  • Lean management focuses on the scientific method. Leaders must strive to create an environment that targets continuous improvement.
  • It is also important to acknowledge and celebrate improvements. If team members report their successes to a leadership that is not familiar with the tools and terms, they might not realize the importance of the success.
  • Leaders should trust the experience, skills, and knowledge of their employees. Hire smart and ambitious team players and arm them with the right tools.
  • Most importantly, leaders must learn when to let go and get out of the way. Leaders are not supposed to do the work but to lead teams and prioritize the right work so as to foster a great value for the customer.

Conclusion

The lack of understanding is one of the major hurdles that need to be overcome if you need to ensure that the upper management is involved in supporting initiatives for improvement. Learning the importance of the lean tools and methodologies and leading teams the right way without micro-managing the work is the key to success.

Team-building exercises are a great way to identify employees who are great team players as well as those who can possibly hinder teamwork. They are not just fun games, after all. Continuous support and commitment at the level of the top management are of utmost importance for a company to achieve their end goals.

 

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[VIDEO] Bosch Home Appliances Factory Tour

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bosch, lean manufacturing

Bosch Home Appliances is the largest manufacturer of home appliances in Europe, and one of the leading manufacturers of home appliances on a global scale. Bosch is the result of a joint venture between Robert Bosch GmbH and Siemens AG. In 2017, they reported annual sales over 13.8 billion euros, operating 40 factories worldwide. Including various support and sales companies, Bosch operates as a conglomerate, with over 80 companies in 50 countries and employing more than 61,800 people.

Learn more about Bosch from their New Bern, NC factory tours!

 

 

 

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[VIDEO] TPS Lean Factory Tour

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tips, lean manufacturing

The Toyota Production System (TPS) was invented by Toyota’s founding fathers in 1930 in Japan. The TPS continuously evolves, making it a benchmark for manufacturing, product development or any other sector of industry. TPS is called “The Toyota Way” and it actually gives you a compass to set your direction and helps you steer your own course. Toyota has internally developed simple but effective tools, and consistently trains their team members to implement those in all aspects of manufacturing and designing their vehicle. 

Watch and learn more about TPS below!

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[VIDEO] A Day in the Life of Bezos

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jeff bezos, innovation, lean

What would it be like to be the richest person in the world? Could you imagine having more wealth than Bill Gates? Jeff Bezos is most know for his creation called Amazon, which is disrupting and dominating multiple industries on a global scale. He is also now the guy whose net worth is more than Bill Gates. The question most people ask is, “How does he do it?” Wouldn’t it be great to get inside his brain and get a clear picture of how the magic works? It may never be possible to understand what makes Jeff Bezos tick, but spending a day with this innovator would be invaluable!

Spend a day with Jeff Bezos in this interesting video!

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[VIDEO] Building the Boeing 787 Dreamliner

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boeing, 787, lean manufacturing

The Boeing 787 is reinventing the way we imagine air travel. This aircraft is setting the standard in both range and performance, enabling airlines to expand routes and improve capabilities in existing routes. Passengers will experience greater comfort during their flight due to both the technical abilities and creature comforts designed into the aircraft by Boeing. They call it the ‘Dreamliner Effect.’ Watch a 787 come to life in the Boeing Plant in North Charleston, SC.

Check out the video here!

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Thanksgiving Thoughts and Well Wishes

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thanksgiving, holiday, gratitude

“The more we express thanks, the more gratitude we feel. The more gratitude we feel, the more we express thanks. It’s circular, and it leads to a happier life.”

 ~Steve Goodier

It is that time of year where friends and families gather to celebrate the holiday of giving thanks. For some, this is an annual event for gratitude, good food, and football. Being thankful or practicing gratitude should not be an annual event. Every day should be Thanksgiving. Each and everyone one of us has something to be grateful for. There are always others who have less, who experience life with more pain suffering and struggle. If we practice gratitude every day, our lives become richer and fulfilled.

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[VIDEO] Let the Music Play with Gibson Guitars!

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gibson-guitar-lean-manufacturing

For more than 100 years, Gibson guitars have defined the sounds of musicians and fans. They are the most iconic brand of guitars in the world. Gibson guitars were founded in 1894 in Nashville, TN, by Orville Gibson. They quickly developed a legacy of world-class craftsmanship and exceeding the expectations of every artist that picked up a Gibson instrument. Sit back and enjoy the video on how these iconic instruments are made.

The post [VIDEO] Let the Music Play with Gibson Guitars! appeared first on Shmula.

[VIDEO] Improving Operating Room Efficiency with Lean Six Sigma

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surgery-healthcare-lean-six-sigma

The operating room (OR) is a resource intensive and costly unit in every hospital. Finding ways to maximize their efficiency is crucial to ensuring the financial viability of the organization. As the healthcare environment becomes more and more competitive, increasing OR productivity becomes a high priority. The trick is to find the balance between efficiency and patient care, safety and clinical outcomes. More and more, healthcare professionals look to Lean Six Sigma methodologies to find the balances. Watch this video and learn more from this educational video.

The post [VIDEO] Improving Operating Room Efficiency with Lean Six Sigma appeared first on Shmula.

Principles of Lean Thinking

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principles

During the 1980’s the principles of lean thinking took hold in US manufacturing. The existing techniques of manufacturing were questioned as the Japanese manufacturing principles of ‘just in time’ were becoming a better paradigm. Subsequently, those techniques became better known as lean production. Soon, the principles of lean thinking spread across numerous industries and became accepted as reliable at improving results. When appropriately applied, lean thinking is a well-understood and well-tested platform upon which to grow.

Womack and Jones defined the five principles of Lean manufacturing in their book The Machine That Changed the World. These five principles are considered a roadmap for improving workplace efficiency.

Value – What the customer is willing to pay for. It is crucial to understand the actual or latent needs of the customer and how they want a product or service delivered.

Value Stream Map – The goal is to use the customer’s value as a guide point, then map out all of the activities that contribute to the value. Any activities that do not contribute to value are waste and must be eliminated.

Create Flow – To ensure that the flow remains fluid without interruptions or delay. Create a value chain with no interruption in the production process and a state where each activity is fully in step with every other.

Establish Pull – Inventory is one of the biggest wastes in any production system. The goal of a pull-based system is to limit inventory and work in process (WIP) items while ensuring that the requisite materials and information are available for a smooth flow of work.

Pursue Perfection – Each employee should strive towards perfection while delivering products based on customer needs and values. The company should be a learning organization and always find ways to get a little better each and every day.

The principles encourage creating better flow in work processes and developing a culture of continuous improvement and customer satisfaction.

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