“It would be better if everyone would work together as a system, with the aim for everybody to win.” ~W. Edwards Deming, 1993
Transformation is accomplished through integrated solutions based on Lean Six Sigma methodology. Those components include Quality Strategies, Process Transformation, Quality Evaluation, and Learning Transformation throughout the Business Transformation initiative.
Transformation Decision 3
To address Sustainability and Quality Transformation initiatives, the client's solution must be based on three essential resources: people, ideas, and technology and those resources are orchestrated to formulate the Transformation Roadmap. Integrated solutions put Executives in Control of the Business Transformation with a customized and collaborative approach that integrates the requirement into the solutions, molds the design, and generates the solutions that effectively harnesses and controls your implementation direction.
Tangible Results are the by-products. The key source of change is from internal changes in your business model. This may be due to internal refinements of Processes, new strategies, Product lines, linkage of strategies to new Systems, or an acquisition that needs to integrated into the corporate structure. Dramatic changes in the external environment may also require modifications or enhancements of current processes (i.e., logistic strategies, objectives and goals may affect policies that are engaged in controlling distribution of goods, review of vendors and services, or even expense reimbursement from your Marketing and Sales personnel).
Your initiative will Inject new business concepts and understanding of these concepts will be tools for your Executive and Management to learn and understand how Learning Transformation can make your organization into a high performance culture, centered on Customer needs and satisfaction:
- Quality Strategies - linking strategies to effectiveness, end-to-end linkage to transformation projects, scenario strategies, brainstorming, Enterprise surveys, Consumers and Suppliers surveys, process portfolio governance
- Process Transformation - Lean and Six Sigma methodology, training, tools, business model survey, intracompany model surveys, continuous improvement
- Quality Evaluation - Quality focus, linking strategic Quality objectives, start-up business intelligence, leverage existing management reporting, product, service and process improvement
- Learning Transformation - business lessons, Plan-Do-Study-Act cycle, improvement schedule, gap analysis, project take away [out of scope issues], mini projects, proof of concept
Transformation driven by Lean Six Sigma
Peter Drucker asked; “If you weren't already in this business, would you enter it today?” If you answer yes, but have concerns about efficiency, effectiveness, and performance of your organization; then Lean Six Sigma may be an answer to your dilemma. Transformation driven by Lean Six Sigma methodology must rely on Executive Commitment so:
- Everyone will focus on Customer needs and satisfaction
- All employees will actively engage, especially executives
- Decision-making will be based on data
- Reporting from data and provided information
- Accountability for data validation and chart of accounts alignment
- Training for all executives and employees
Controlling consumption is a key driver of growth, but also a key driver of waste and emissions. The challenge for business is to invent a new consumption model, which meets consumer needs and uses resources more effectively.
Changing consumer preferences in light of environmental concerns can be seen in trends such as wider demand for energy-efficient products, processes and services; requests for better information about environmental impacts of products and services; and increased adoption of energy efficient “green” technologies. Their focus on waste reduction throughout the product life cycle aligns very well with the main levers used to become more sustainable. The tools and methodologies that have been developed through Lean Six Sigma also provide a practical way to implement a company’s sustainability program—a way that provides rapid results and better return on investment.
Next Steps to Transformation
To provide a successful hand off from the Meta Planning phase to the Transformation phase, remember that in the previous phase these steps were completed for the business model / enterprise:
01 Planning the Initiative and Scope
02 Executive Commitment to Quality and select a Champion
03 Establish a vision, integrate Quality Strategies, specify the objectives and select a model for the Initiative
04 Assess and create a Master Portfolio of Projects sorted by priority
05 Document stakeholders, strategies, resources, timelines and accountability
06 Develop detail project plan by major functional areas that align with strategies and objectives
1. The first step in empowering your employees is through Lean Six Sigma disciplines. Engage all employees in Lean Six Sigma training and reward their efforts when they produce tangible savings, productivity, and efficiencies.
2. Identify and assess your projects to determine the size of your Lean Six Sigma effort. Identify and prioritize business impact proj¬ects according to anticipated savings, reduction in cycle time and improved throughput.
3. Focus on low-hanging fruit and apply Lean principles in reducing waste and other costs.
4. True Lean Six Sigma Quality is an elusive goal. Build consensus in your Executive Team and Define and develop Quality for your business.
5. Expand the scope of Six Sigma beyond the pilot stage and beyond the group/division level to be consistently applied enterprise wide.
6. Align Business, Finance, and IT efforts during the Business Transformation. Charge Finance with a facilitation role and engage all projects. IT solutions remain largely untapped as a response to Business Transformation; so, utilize those talents too.
Consistency, communication and following the "system" is critical. In the Transformation phase, each team is assigned a project to continue the Transformation process:
07 Project assigned to the Transformation Team
08 Execute the project based on the Lean Six Sigma DMAIC roadmap, recommend change - change - measure
09 Post project review: lessons learned, review and refine the transformation
10 Repeat steps 05-09 on the next project
Because it requires a fundamental change in the way an organization is structured and managed, process management is often the most challenging and time-consuming part of Six Sigma. In general, process management consists of:
- Defining processes, key customer requirements, and process “owners”.
- Measuring performance against customer requirements and key performance indicators.
- Analyzing data to enhance measures and refine the process management mechanisms.
- Controlling process performance by monitoring process inputs, process operation, and process outputs, and responding quickly to problems and process variations.
Since process improvement is the most frequently used aspect of Six Sigma, this section looks at part one – Process Improvement – in more detail. The abbreviation of this roadmap, called DMAIC, often focuses on Business and IT Supported Systems, either manual or automated, that are integrated and used by the enterprise. The last two steps in the model implement the solution and provide an audit phase to verify progress.
Process improvement - DMAIC
The purpose of process improvement is to eliminate the root causes of performance deficiencies in processes that already exist in the organization. These performance deficiencies may be causing real problems for the organization, or may be preventing it from working as efficiently and effectively as it could. To eliminate these deficiencies a five-step approach is used, called DMAIC. The DMAIC project methodology has five phases:
- Define the problem, the voice of the customer, and the project goals, specifically.
- Measure key aspects of the current process and collect relevant data.
- Analyze the data to investigate and verify cause-and-effect relationships. Determine what the relationships are, and attempt to ensure that all factors have been considered. Seek out root cause of the defect under investigation.
- Improve or optimize the current process based upon data analysis using techniques such as design of experiments, poka yoke or mistake proofing, and standard work to create a new, future state process. Set up pilot runs to establish process capability.
- Control the future state process to ensure that any deviations from target are corrected before they result in defects. Implement control systems such as statistical process control, production boards, and visual workplaces, and continuously monitor the process.
There are many forms of innovation and Lean Six Sigma provides a conduit for change that could include innovative opportunities. In the near future, more information about applying Lean Six Sigma and other services will be found by reviewing our special section on Innovation.
Lean Six Sigma drives change and transformation. It provides sustainable bottom line results through the use of proven methodologies that increase process speed, eliminate waste, reduce variation and improve customer satisfaction. All of these elements of Lean Six Sigma are crucial for a company to sustain competitive advantage and achieve high performance.
Process Design/Re-design - DMADV
Sometimes simply improving existing processes is not enough, and, therefore, new processes will need to be designed, or existing processes will need to be re-designed. In these cases, Lean Six Sigma uses the DMADV development model. There are several reasons why this could be necessary:
- An organization may choose to replace, rather than repair, one or more of its core processes.
- An organization discovers, during an improvement project, that simply improving an existing process will never deliver the level of quality its customers are demanding.
- An organization identifies an opportunity to offer an entirely new product or service.
- Define design goals that are consistent with customer demands and the enterprise strategy.
- Measure and identify CTQs (characteristics that are Critical To Quality), product capabilities, production process capability, and risks.
- Analyze to develop and design alternatives, create a high-level design and evaluate design capability to select the best design.
- Design details, optimize the design, and plan for design verification. This phase may require simulations.
- Verify the design, set up pilot runs, implement the production process and hand it over to the process owner(s).
Peter Drucker once said; "What's measured improves." Quality should be your goal and is no exception. First you measure your gains. Second, you ensure those gains are not lost, Third, you continue to improve through Lean and Six Sigma techniques to capture more gains and benefits.
Your quality effectiveness visibility is contingent on your corporate infrastructure. This underscores a data model which can be leveraged from your business intelligence infrastructure or other management reporting tools. Reporting on your quality effectiveness is a collaborative approach and will include subject matter experts from accounting, information technology, and business processes. Each of these key areas will be responsible for the following action items:
- The CFO of your company will need to buy in on the business transformation, since accountability and tracking progress who will rely on your Accounting departments subject matter experts. Lean Accounting needs to be supported and implemented to address the correlation of improvement over the processes and existing data points in the accounting system.
- From an IT point of view, reporting information needs to be supported and set up in a timely manner to facilitate the feedback and measuring gains of each transformed process. As part of this reporting mechanism data needs to be accumulated for all processes. In addition, reporting on the effectiveness and benefits from your business transformation initiative should be incorporated and provide oversight to your current balance scorecard. All strategies, especially your quality strategies, should reflect that clear again in each reporting period. All trends are subject for review and interpretation, as well as, anomalies in spikes that impact your key processes.
- Lastly, your business subject matter experts that work with those key processes also need support and buying and from there senior management. The knowledge available from these workers will be significant in relating to changes, improvements, and awareness of other considerations that might impact implementation.
Continuous Improvement Process is an ongoing effort to improve products, services or processes. These efforts can seek "incremental" improvement over time, continuous steps rather than giant leaps, or "breakthrough" improvement all at once. Delivery (customer valued) processes are constantly evaluated and improved in the light of their efficiency, effectiveness and flexibility.
Some see it as a meta-process for most management systems (Business Process Management, Quality Management, Project Management). Dr. Deming, who originated the concept, see Deming Cycle, saw it as part of the 'system' whereby feedback from the process and customer were evaluated against organizational goals. The fact that it can be called a management process does not mean that it needs to be executed by 'management' merely that it makes decisions about the implementation of the delivery process and the design of the delivery process itself.
Any Questions? by Ralph Jarvis
In “Any Questions?!” (ISBN 1461072824), his research suggests that company Owners and Executives are constantly searching for better ways to do business. He feels that while many are considering Sustainability projects individually, few are looking to combine Sustainability with the Lean Six Sigma. It is a primer and a model to implement a pragmatic approach to Business Transformation that maximizes benefits while mitigating organizational turmoil and confusion.
On-line Bookstores for Paperback and Kindle formats:
Amazon Bookstore | CreateSpace eBookstore | Client's Reward Program | Kindle Bookstore
Strategy & Alignment l Sustainability l Lean Six Sigma l Analytics & Optimization l Speaking Engagements l Workshops
Note: Blue lettered words are mapped to related internal web pages and external URLs.