Understanding Lean Six Sigma

Understanding Lean &
Six Sigma
ISM – Northeast Wisconsin, March 12, 2013
Presented By:
Todd Wiese, Partner
Adaptive Business Solutions, LLC
W175 N11163 Stonewood Dr.
Ste 214
Germantown, WI 53022
www.abstb.com
Participant Introductions
• Show of hands: Any formalized

exposure to continuous
improvement philosophies such as
Lean or Six Sigma?
• Fist to five: Level of

understanding of:
• Lean
• Six Sigma
© Adaptive Business Solutions, LLC –

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About Your Moderator
Contact Us
Todd Wiese
• GE Healthcare; Lean Six Sigma
Master Black Belt
• Rockwell Business CI Champion
• 15+ years Supply Chain, Operations,
Finance, and Engineering experience
• Lieutenant, U.S. Navy; Submarines
Email: todd.wiese@abstb.com
• BS Engineering; U.S. Naval
Academy Phone: (262) 349 - 5671
Fax: (312) 268 - 6119
• MBA; Kellogg School of Mail: Adaptive Business Solutions
Management, Northwestern W175N11163 Stonewood Dr.
Suite 214

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Goals & Objectives
• Provide basic understanding of Lean thinking.

• Understand purpose of some of the techniques and
approaches to creating value.
• Importance of system-wide thinking.
• Your goals…

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Origins of the term “Lean”
“The Machine That Changed the World.”
•Published 1990 by MIT’s International

Motor Vehicle Program (IMVP) leaders
(Womak, Jones, and Roos)
•5-yr international study of the auto

industry
•Evaluation of all industry delivery,

quality, and cost metrics.
•Analysis of mass vs. craft vs. hybrid

(Lean) production systems
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Origins of the term “Lean”
“Lean production…is ‘lean’

because it uses less of
everything compared with mass
production – half the human
effort in the factory, half the
manufacturing space, half the
investment in tools, half the
engineering hours to develop a “The most Japanese of
new product in half the time.” Japanese companies…”
The Machine that Changed the World

Womack, Jones, Roos, ©1990, pg. 13

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Lean Preconceptions / Overview
Lean is not…
• Simply a cost cutting effort; a way to reduce headcount.
• A function or program; it’s the way we do business.
• An immediate solution; requires patience.
• Just for operations; must avoid sub-optimizing the value
stream.
• A ground up effort; requires focus and support at all levels.
• Simply a tool kit to be used before fixing the basics.
We’ll spend the next hour learning about Lean thinking.

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Preconceptions / Overview Summary
Many of the components of Lean are NOT new:

• Problem Solving………………Six Sigma, 8D
• Reducing Waste………………e-tools, software
• Employee Involvement……….Quality circles
• Mistake Proofing………………Three prong outlets
• Visual Management…………..Color coding
• Continuous Improvement…….Reengineering
What is new…
Lean-thinking organizations, like Toyota, systematized all of
these concepts and more, and:
• Applied them in a disciplined manner to all aspects of

their business
AND
• Created a culture that enables these concepts to thrive.

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Exercise: Defining Lean and Six Sigma
Exercise objective: Understand

participants’ level of knowledge and
understanding of both Lean and Six
Sigma.
On one side of a note card, explain how

you would describe Lean and Six Sigma
to someone.

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Adaptive Theory of a Lean Thinking Organization
A Lean organization is one that strives to constantly

improve the value proposition to their customer(s) by:
• Supporting their employees in value creation by

providing systems, resources, and development
AND
• Building relationships with both customers and

suppliers

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Elements of a Lean Organization
A system, not
Values /
simply a set of Process
Beliefs
Development / Leadership
tools… Improvement
Product
Mission /
Development /
Most want Improvement Vision
to focus
here! People
Lean Strategy /
Development /
Improvement Organization Goals
Production Op Mechs /
System Metrics
Data /
Information Systems / HR Strategy
Availability Equipment
Availability

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The system must move synchronously, at the optimal

speed, in the same, correct direction…
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Toyota Financial Performance As A Benchmark
’07 Revenue ’07 Earnings ’07 Market As of 2/7/13

Firm Established
5-yr CAGR 5-yr CAGR Value ($B) Mkt Val ($B)
$172.5B -$2.9B
Ford 1903 10.9 49.7
-0.50% 0.00%
$181.5B -$38.7B
GM 1897-1908 7.4 44.3
-0.70% 0.00%
1914 $86.7B $5.8B
Nissan 32.7 47.0
(*as Datsun) 13.40% 5.40%
1937 $104.0B $6.3B
Honda 59.7 68.0
(*auto prod in ’48) 8.10% 11.60%
Total -$29.3B 110.7 209.0
224.63 15.9
Toyota 1937 157.5 162.0
12.90% 9.30%
Toyota valued at 2-3 times the competition.

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Improvement is a Key Element to a Lean Organization
Values /
Process
Development / Beliefs Leadership
Improvement
Product
Mission /
Development /
• A structured, Improvement Vision
data driven,
problem People
solving Lean Strategy /
Development /
methodology Improvement Organization Goals
• Critical element
to a Lean- Production Op Mechs /
thinking System Metrics
organization Data /
Availability

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Six Sigma Defined
Six Sigma is a problem-solving

methodology that is:
• Standardized
• Systematic
• Process oriented
• Data-driven
• Based on scientific method
Goal: Ensure identified process/product produces desired

output/performance level.

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Improving Performance with the Scientific Method
• Problem/Question
• Observation/Research
• Formulate a Hypothesis
• Experiment
• Collect and Analyze Results
• Conclusion
• Communicate the Results
Everything you needed to know about problem

solving, you learned in 6th grade science!
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How Do Lean and Six Sigma and Project Management Interact?
Lean is how you run your business
Six Sigma is a method for solving your complicated

problems
Project Management is how you complete

your continuous improvement projects
(including 6 Sigma) on time and budget

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Disclaimers
• WATA
• No “get rich quick” schemes, silver

bullets, or cookie-cutter
solutions…we’re not offering any.
• 73 days vs. 73 years at Toyota…You

must practice to become proficient.
• Not about becoming Toyota; rather

understand what they did and why, and
how to apply principles to your
situation.
• Simple ≠ Easy

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Lean Thinking
In order to
understand what
makes Lean-
thinking companies
so successful…
you must
understand the
DNA of the
organization.

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Lean Thinking – Understanding the Customers
Kaizen (Continuously Improving )

J
I Key Flexible,
D Critical J
Elements / Motivated Employees I
O Activities
K Methods T
A Maintaining & Improving the Standards
Foundation Standardization / Problem Solving
The Customer The Employee The Company
Goals &
Desired Highest Quality Work Satisfaction Market Flexibility
Lowest Cost Job Security Profit
Results
Shortest Lead-Time Consistent Income (from cost reduction)
Base Values Respect for Constantly

& Core
Customer First seek to
Community and
Philosophies …Always eliminate
the People
waste
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The Foundation For Toyota’s Success

J
I Key Flexible,
D Critical J
Elements / Motivated Employees
O
K Methods
Activities I
T Who is important and
A Maintaining & Improving the Standards how do I satisfy
Standardization / Problem Solving them…
Highest Quality Work Satisfaction
•3 “customers”…end-
Market Flexibility
Lowest Cost Job Security Profit users, employees,
shareholders. All
must be considered.
Customer First Respect for Community Elimination of Waste
…Always and the People Constantly seeking…
•Understand how to
deliver value for each
customer

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Lean Thinking Principles
1. Truly understand who all your customers are, and

what they value. (What you need to believe)
I. External Customer
II. Employees
III. The Company
2. Continuously strive to maximize value by identifying

and removing waste (process improvement). (How
you need to behave)
I. Creating a system to identify problems
II. Managing the system
III. Solving Problems

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Lean Thinking – Maximize Customer Value
Maximize value:
Customer = Worth Price

Value (To The customer) (Profits + Costs)
Increase worth by listening to the Decrease costs by

customer; understand what they reducing waste
are willing to pay for
Maximize value by focusing on both increasing

worth and reducing costs
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Lean Thinking – Maximize Customer Value
Assume:
Carpenter’s hourly rate = $50/hour
Time savings per house = 50 hours (1 house only)
Benefit derived from pneumatic nail gun per house = $2500

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Maximize Customer Value
Value
- Benefit Derived by Customers ($2500)
Customer Value Captured
Total Value - Selling Price ($2000)
Created
Supplier Value Captured
- Cost to produce ($1500)
To stay in business, both must find value. To be competitive,

we must create more customer value than our competitors
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II. Employees
III. The Company

you need to behave)

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Employee & Community Value
Organization Jobs
1. General Motors: 107,400
18. Ford: 15,900
25. Chrysler 13,600
“As the U.S. auto industry sheds

workers, and even Nissan offers
buyouts, Toyota is sticking by its
proud—and expensive—tradition of
no layoffs during hard times.”
US News & WR. 8/26/08
Saying you are committed to your employees and the community is

easy. Actually showing your commitment is tougher.
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Employee & Community Value
Other examples:
• Helped start and sponsor non-

profit dedicated to support local
school district
• Provides technical, cultural,
and leadership training to
elementary, middle, and high
school groups.
• HR ratios: ~1-20.
• Extensive employee development & feedback.
• Living the “Golden Rule”.

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II. Employees
III. The Company

you need to behave)

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Maximizing Shareholder Value
Traditional Pricing Model…
Price = Cost + Profits
But rather…
Profit = Price - Cost

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Maximizing Shareholder Value
Profit = Price - Cost

(Shareholder (Set by market) (Our focus)
value) *True monopolies
semi exception
“(In order to compete), we must build cars at 1/10th the cost

(of American cars).” Kiichiro Toyoda

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Removing Waste Is Key To Profitability
Value add NVA

Cost =
activities + but req’d + NVA activities
Value add is necessary…customers pay for it.

Non-value added (NVA) but required…can’t live without it.
So we must focus on the NVA activities…the waste!

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Identifying Opportunities
“A ‘revolution in
consciousness is
indispensible’…”
Taiichi Ohno; Chief Inventor of

the Toyota Production System

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Types of Non-value Add Activity
The “Three M’s”: Muda, Muri, and Mura
Muri = Overburden; placing too heavy a mental or

physical burden on employees or machinery i.e. running
at a rate greater than designed capacity
Mura = Unevenness; work unevenly distributed among

employees / process.
Muda = Waste

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Waste (Muda)
The Eight
Wastes
Defects
Over
Production
Waiting
NVA
Processing
Transportation
Inventory
Motion
Underutilized
Employees
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Waste 1 – Defects Defined
The Eight
Wastes
Defects
Over
Production • Can be either a process-
Waiting related or product defect.
• Upsets customers
NVA
Processing • Consumes resources
Transportation • Chokes flow
Inventory
Motion
Underutilized Reworking defects is wasteful; sending them to

Employees customers is sinful.
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Waste 2 – Over Production Defined
The Eight
Wastes
Defects
Over
Production • Ties up working &
Waiting intellectual capital
• Takes up physical and
NVA
Processing virtual space
Transportation
• Hides problems
• Magnifies all other wastes
Inventory
Motion
Underutilized Producing more than the downstream customer

Employees immediately needs.
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Waste 2 – Over Production Examples
The Eight Physical Transactional
Wastes
Defects
Over
Production
Waiting
NVA
Processing
Transportation
Inventory • Batching parts • Producing engineering

• Building / shipping drawings ahead of time
Motion early • Running reports ahead
• Warehousing / of time.
Underutilized
supermarkets • Too many copies
Employees
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Waste 3 – Waiting Defined
The Eight
Wastes
Defects
Over
Production • Underutilizes people and
Waiting equipment
• Slows customer response
NVA
Processing • Increases lead times
Transportation
Inventory
Motion
Underutilized When inventory or workers wait, your customers wait

Employees
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Waste 4 – NVA Processing Defined
The Eight
Wastes
Defects
Over
Production • NVA = Non-value added
Waiting • Sometimes revered to as
over processing.
NVA
Processing • Must explicitly understand
Transportation
customer needs.
Inventory
Motion
Underutilized Giving the customer more than what they wanted and
Employees for which they do NOT find value
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Waste 4 – NVA Processing Examples
Wastes
Defects
Over
Production
Waiting
NVA
Processing
Transportation
Inventory • Excessive finishing • Redundant paperwork

• Testing / quality checks • Information re-
Motion • Excessive packaging clarification / excess
• Unnecessarily tight information gathering
Underutilized
tolerances. • Software features no one
Employees
uses
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Waste 5 – Transportation Defined
The Eight
Wastes
Defects
Over
• Physical or virtual distance
Production between processes
Waiting • Requires equipment and

time
NVA
Processing • Can result in cost i.e. lost
or damaged information or
Transportation material.
Inventory • May be necessary; must

minimize.
Motion
Underutilized Position operations close together to minimize impact.

Employees
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Waste 6 – Inventory Defined
The Eight
Wastes
Defects
Over
Production • Ties up working capital
Waiting • Takes up valuable space
NVA • Risk of obsolescence and
Processing / or damage
Transportation
Inventory
Motion
Underutilized Lowering inventory levels will help reveal problems.

Employees
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Waste 6 – Inventory Examples
Wastes
Defects
Over
Production
Waiting
NVA
Processing
Transportation
Inventory • Finished goods • Gathering or storing

• Raw materials information ahead of
Motion • Work in process time.
• Consignment • Job folders
Underutilized
Employees
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Waste 7 – Motion Defined
The Eight
Wastes
Defects
Over • Movement within the

Production process itself.
Waiting • Can cause ergonomic
concerns both in office and
NVA
Processing on floor.
• Results in wasted cost
Transportation
through inefficient
movement.
Inventory
Motion
Underutilized Treat associates like surgeons…everything within

Employees reach.
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Waste 7 – Motion Examples
Before After
Using portable ladder to access car

and transport tools and equipment. Fixed platform and tool board reduce
Resulting in excessive trips and safety up and down travel by 45 minutes per
issues. Previous observations car & eliminate ladder safety issues.
revealed average 3 trips per hour for
top of car tasks
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Waste 8 – Underused Employees Defined
The Eight
Wastes
Defects
Over • People not matched to

Production their value added skills
Waiting • Not using the intelligence
of the workforce to solve
NVA
Processing problems.
• Increased cost due to lack
Transportation
of productivity; potential
absenteeism.
Inventory
Motion
Underutilized When you hire a person for their hands, you get the
Employees brain for free. Use it!
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Waste Summary
• Identified from customer

point of view.
• Perfection is the
goal…recognize you will
never be perfect.
• Continuously challenge
your organization to
identify and remove it. If you think you’ve found
perfection…that’s your biggest
problem

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II. Employees
III. The Company

you need to behave)

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Improvement
The most important

(and first) step to
improvement is…
Recognizing you
have a problem!
(Problem
Consciousness)

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Toyota Production System (TPS) Defined
“All we are doing is looking

at a time line from the
moment the customer gives
us an order to the point
when we collect the cash.
And we are reducing that
time line by removing the
non-value added wastes”
Taiichi Ohno,
All “Lean” tools / techniques
Toyota Production System 1978 created to highlight waste!

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A system, not
Values /
simply a set of Process
Beliefs
Development / Leadership
tools… Improvement
Product
Mission /
Development /
Most want Improvement Vision
to focus
here! People
Lean Strategy /
Development /
Improvement Organization Goals
Production Op Mechs /
System Metrics
Data /
Availability

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A Benchmark Foundation / System
An principled
approach built
on the right J
I Key Maintaining & Flexible,
values… D
Elements / Improving the Motivated
Critical J
I
O Activities
K Methods Standards Employees T
A
Foundation Standardization / Problem Solving

Goals &
Desired Highest Quality Work Satisfaction Market Flexibility
Results Lowest Cost Job Security Profit
Base Values Customer First Constantly Seek to

Respect for Community
& Core …Always and the People Eliminate Waste
Philosophies

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Lean Techniques
5S
Andon
Takt Time
Kaizen Some of the Lean

“tools and
Kanban
techniques” used to
Pokayoke
identify and remove
Standardized
Work waste…
Single Piece
Flow
Visual
Management
VSM

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Lean Techniques – 5S
5S
• Sort…only what you need
Andon
• Set-in-place / Simplify…find it quickly
Takt Time
• Shine…keep it clean
Kaizen
• Standardize…consistent approach
Kanban
• Sustain…discipline and follow-up
Pokayoke
Standardized
Work
Single Piece
Flow
Visual Effectively organize to identify
Management abnormal conditions
VSM

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5S Example
Before Kaizen After Kaizen

•Top Shelf –
Safety valve kits
•2nd shelf – BOV

kits
•Lower shelves –
Small O-rings and
less frequently
used kits
•Color coded by
gasket type and
sorted by valve
type
•Positioned for
good ergonomics

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Lean Techniques - Andon
5S
Andon
•Andon simply means “light”
•Provides visual status indication
Takt Time •Used to immediately alert team to abnormal
Kaizen
condition
Kanban
Pokayoke
Standardized
Work
Single Piece
Flow
Visual
Management
VSM
Alerts everyone to a problem immediately
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Lean Techniques – Takt Time
5S
•Derived from the German “taktzeit” (clock
Andon
cycle)
Takt Time
•Matches process output rate with customer
Kaizen (downstream process) demand
Kanban •Based on time available to conduct the
process and the rate at which customer is
Pokayoke
demanding output
Standardized
Work
Single Piece
Flow
Visual
Management
VSM The Heartbeat of the Business

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Lean Techniques - Kaizen
5S
•Kai (“Change”) + Zen (“Good”)
Andon
•“Bunts and singles”; small, but incremental and
Takt Time continuous (daily) improvements by everyone
Kaizen
Incremental Approach to CI
Kanban
Desired future
state
Performance
Pokayoke Dedicated
Process improvement
Standardized mapped; event #1
Performance
work
Work standardized target
Goals
Single Piece Process
owner set
Flow established “On the fly”
change
Visual
Management
VSM

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Lean Techniques - Kanban
5S
•Means “visual card”
Andon
•Inspired by the
Takt Time concept of the
American supermarket
Kaizen
•Customer gets what
Kanban they need, in the time
needed, while
Pokayoke ensuring the store
stocks only what will Supermarkets: An empty spot
Standardized
Work
be used prompts the shelf to be refilled. After
Single Piece enough refills, the store generates a
Flow replenishment request…
Visual
Management
VSM

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Lean Techniques – Poka-yoke
5S
Can you identify the poka-yoke?
Andon
Takt Time
•Creating a “fail
Kaizen safe” or mistake-
proof method to
Kanban guarantee desired
process output.
Poka-yoke
Standardized
Work
Single Piece
Flow
Visual
Management
VSM

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Lean Techniques – Standardized Work
5S
Andon
Takt Time
Kaizen
Kanban
Pokayoke
Standardized Acknowledge the guest

Work Recognize special guests / offer to enroll
Single Piece Recap preferences
Flow
Info in the reservation correct?
Visual
Management
Verify method of payment
Acquire keys
VSM Leave a lasting impression

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Lean Techniques – Single Piece Flow
5S
Andon
Batch Single Piece Flow
Takt Time
Kaizen
Kanban
Pokayoke
Standardized
Work From: The Toyota Production System
Single Piece
Flow Catches Defects too Late Catches Defects Immediately
Visual • How many more do you have? • You only have one
Management • Where are they in the process? • You know where it occurred
• What is the root cause? • Resolve the root cause immediately
VSM
Flow where you can, pull when you can’t
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Lean Techniques – Visual Management
5S
Andon
Takt Time
Kaizen
Kanban
Pokayoke
Standardized
Work
Single Piece
Flow
Visual
Management
Tell at a glance if activities are behaving as
VSM
expected; a communication tool.
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Lean Techniques – Value Stream Mapping
5S
Andon
Takt Time
Kaizen
Kanban
Pokayoke
Standardized
Work
Single Piece
Flow
Visual
Management
See and understand material & information flow
VSM
across the entire value stream
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Importance of a Value Focus
One more question…
Why are companies in business?

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5S
Andon
Remember the lean techniques?
Takt Time
Are they independent? Kaizen
Kanban
Are they self sustaining?
Pokayoke
Standardized
Can we make them more effective? Work
Single Piece
Flow
Visual
Management

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Yes!
We can make them more effective if
we understand that….
Lean is a culture and business philosophy

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Axioms Principles Techniques
5S
Is there a natural
Just-in-time Andon
flow? (Flow)
Takt Time
Perfection
Relationships Kaizen
Autonomation Kanban
Value (Jidoka)
Pokayoke
Continuous
People Learning Standardized
Work
Single Piece
Stability Flow
Visual
Management Significantly influenced
by Joachim Knuf
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Are any of 5S
these more Just-in-time Andon
important than (Flow)
the other? Takt Time
Perfection
Autonomation Kanban
(Jidoka)
Value
Value
Pokayoke
Continuous
Work
Single Piece
Stability Flow
Visual
by Joachim Knuf
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5S
What if we
aren’t focused Just-in-time Andon
(Flow)
on value?
Takt Time
Perfection
Autonomation Kanban
Value (Jidoka)
Pokayoke
Continuous
Work
Single Piece
Stability Flow
Visual
by Joachim Knuf
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5S
What if we
(Flow)
on value?
Takt Time
Perfection
Autonomation Kanban
Profits (Jidoka)
Pokayoke
Continuous
Work
Single Piece
Stability Flow
Visual
by Joachim Knuf
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5S
What if we
(Flow)
on value?
Takt Time
Perfection
Competition Kaizen
Autonomation Kanban
Profits (Jidoka)
Pokayoke
Continuous
Work
Single Piece
Stability Flow
Visual
by Joachim Knuf
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5S
What if we
(Flow)
on value?
Takt Time
Perfection
Competition Kaizen
Autonomation Kanban
Profits (Jidoka)
Pokayoke
Continuous
Corporation Learning Standardized
Work
Single Piece
Stability Flow
Visual
by Joachim Knuf
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5S
What if we
aren’t focused Just-in-case Andon
on value?
Takt Time
Perfection
Competition Kaizen
Autonomation Kanban
Profits (Jidoka)
Pokayoke
Continuous
Work
Single Piece
Stability Flow
Visual
by Joachim Knuf
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5S
What if we
on value?
Takt Time
Good enough
Competition Kaizen
Autonomation Kanban
Profits (Jidoka)
Pokayoke
Continuous
Work
Single Piece
Stability Flow
Visual
by Joachim Knuf
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5S
What if we
on value?
Takt Time
Good enough
Competition Kaizen
Automation Kanban
Profits
Pokayoke
Continuous
Work
Single Piece
Stability Flow
Visual
by Joachim Knuf
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5S
What if we
on value?
Takt Time
Good enough
Competition Kaizen
Automation Kanban
Profits
Pokayoke
Program of
Corporation the month Standardized
Work
Single Piece
Stability Flow
Visual
by Joachim Knuf
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5S
What if we
on value?
Takt Time
Good enough
Competition Kaizen
Automation Kanban
Profits
Pokayoke
Program of
Work
Single Piece
My way Flow
Visual
by Joachim Knuf
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Mess
What if we
on value?
Takt Time
Good enough
Competition Kaizen
Automation Kanban
Profits
Pokayoke
Program of
Work
Single Piece
My way Flow
Visual
by Joachim Knuf
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Mess
What if we
Assign
aren’t focused Just-in-case blame
on value?
Takt Time
Good enough
Competition Kaizen
Automation Kanban
Profits
Pokayoke
Program of
Work
Single Piece
My way Flow
Visual
by Joachim Knuf
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Mess
What if we
Assign
on value?
Speed
Good enough
Competition Kaizen
Automation Kanban
Profits
Pokayoke
Program of
Work
Single Piece
My way Flow
Visual
by Joachim Knuf
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Mess
What if we
Assign
on value?
Speed
Good enough
Competition Band aide
Automation Kanban
Profits
Pokayoke
Program of
Work
Single Piece
My way Flow
Visual
by Joachim Knuf
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83
Mess
What if we
Assign
on value?
Speed
Good enough
Excess
Automation inventory
Profits
Pokayoke
Program of
Work
Single Piece
My way Flow
Visual
by Joachim Knuf
All Rights Reserved
84
Mess
What if we
Assign
on value?
Speed
Good enough
Excess
Profits
Rework
Program of
Work
Single Piece
My way Flow
Visual
by Joachim Knuf
All Rights Reserved
85
Mess
What if we
Assign
on value?
Speed
Good enough
Excess
Profits
Rework
Program of
Corporation the month Tribal
knowledge
Single Piece
My way Flow
Visual
by Joachim Knuf
All Rights Reserved
86
Mess
What if we
Assign
on value?
Speed
Good enough
Excess
Profits
Rework
Program of
knowledge
Batch and
My way queue
Visual
by Joachim Knuf
All Rights Reserved
87
Mess
What if we
Assign
on value?
Speed
Good enough
Excess
Profits
Rework
Program of
knowledge
Batch and
My way queue
Search &
find Significantly influenced
by Joachim Knuf
All Rights Reserved
88
5S
Just-in-case Andon
Takt time
Good enough
Competition Kaizen Can an
organization
Kanban
Automation only use the
Profits
Poke yoke tools &
Program of techniques?
work
Single piece
My way flow
Visual
management Significantly influenced
by Joachim Knuf
All Rights Reserved
89
Mess
Yes…but it
Assign
requires constant Just-in-case blame
emphasis.
Speed
Conventional
Good enough
Competition Band aide organization
Excess
applying
Automation inventory Lean & Six
Profits
Rework Sigma tools
Program of
knowledge
Batch and
My way queue
Search &
find Significantly influenced
by Joachim Knuf
All Rights Reserved
90
<5% of
Lean Lean benefits
Techniques
Lean
Principles
Lean
Axioms
Do we only want the tip of the Lean iceberg?

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91
Summary: Conventional vs. Lean Thinking
To a conventional organization…
• Lean is using specific techniques to increase

productivity. Focus solely on cost.
• Six Sigma is a tool set driven by “Belts” to
solve a companies problems.
To a truly Lean organization…

• Lean is a culture and management philosophy that
eliminates waste and creates value for the customer.
• Six Sigma is a way of thinking by everyone to solve
your most critical problems.

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92
Last Thoughts On Why Organizations Fail To Change
“It is like tasting the best cake you

have ever eaten and asking for the
recipe. However, when it is time to
bake the cake yourself, you
determine that you don’t have the
time or patience to follow the recipe
exactly so you cut corners. You don’t
let mixtures rest over night, you use
less expensive ingredients to save
money, and you cut the bake time
down by a few minutes.
Then, when your cake doesn’t taste
as good as the original, you blame
the recipe!”
Bill Suycott
Former Adaptive student

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93
Questions?

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94
Contact Us
Adaptive Business Solutions facilitates the adoption of Lean thinking into

your organization by integrating with your current culture and delivering the
education and coaching needed to enhance and sustain customer, employee,
and shareholder value.
For inquiries regarding our services and availability, feel free to contact us via
e-mail at inquiries@abstb.com, or contact the managing partners directly:
Brent Tadsen
126 S. Northwest Hwy
Barrington, IL 60010
E-mail: Brent.Tadsen@abstb.com
Cell: (312) 720-1731
Todd Wiese
W175 N11163 Stonewood Dr.; Suite 214
E-mail: Todd.Wiese@abstb.com
Cell: (262) 349-5671

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Understanding Lean Six Sigma

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Understanding Lean Six Sigma

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Understanding Lean &

ISM – Northeast Wisconsin, March 12, 2013

• Show of hands: Any formalized

• Fist to five: Level of

© Adaptive Business Solutions, LLC –

© Adaptive Business Solutions, LLC –

• Provide basic understanding of Lean thinking.

© Adaptive Business Solutions, LLC –

“The Machine That Changed the World.”

•Published 1990 by MIT’s International

•5-yr international study of the auto

•Evaluation of all industry delivery,

•Analysis of mass vs. craft vs. hybrid

“Lean production…is ‘lean’

The Machine that Changed the World

© Adaptive Business Solutions, LLC –

We’ll spend the next hour learning about Lean thinking.

© Adaptive Business Solutions, LLC –

Many of the components of Lean are NOT new:

• Applied them in a disciplined manner to all aspects of

© Adaptive Business Solutions, LLC –

Exercise objective: Understand

On one side of a note card, explain how

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A Lean organization is one that strives to constantly

• Supporting their employees in value creation by

• Building relationships with both customers and

© Adaptive Business Solutions, LLC –

© Adaptive Business Solutions, LLC –

The system must move synchronously, at the optimal

’07 Revenue ’07 Earnings ’07 Market As of 2/7/13

Toyota valued at 2-3 times the competition.

© Adaptive Business Solutions, LLC –

Six Sigma is a problem-solving

Goal: Ensure identified process/product produces desired

© Adaptive Business Solutions, LLC –

Everything you needed to know about problem

Lean is how you run your business

Six Sigma is a method for solving your complicated

Project Management is how you complete

© Adaptive Business Solutions, LLC –

• No “get rich quick” schemes, silver

• 73 days vs. 73 years at Toyota…You

• Not about becoming Toyota; rather

© Adaptive Business Solutions, LLC –

© Adaptive Business Solutions, LLC –

Kaizen (Continuously Improving )

Base Values Respect for Constantly

Kaizen (Continuously Improving )

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1. Truly understand who all your customers are, and

2. Continuously strive to maximize value by identifying

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Customer = Worth Price

Increase worth by listening to the Decrease costs by

Maximize value by focusing on both increasing

Benefit derived from pneumatic nail gun per house = $2500

- Cost to produce ($1500)

To stay in business, both must find value. To be competitive,

1. Truly understand who all your customers are, and

2. Continuously strive to maximize value by identifying

© Adaptive Business Solutions, LLC –

“As the U.S. auto industry sheds

US News & WR. 8/26/08