The truth behind the 7 wastes…not what most people think !

The truth behind the 7 wastes…not what most people think !

In most training courses about the '7 wastes' ( or the 8 wastes … TIM WOOD, DOWNTIME, WORM PIT etc ) it is taught as if there was something magical and all-inclusive about this number 7 ( or 8). This was certainly not the intention of Taiichi Ohno, originator of the 7 wastes at Toyota and architect of TPS. The true intention of Ohno was to give a few examples of some key area where waste if found, however he made it clear that wasted time, effort, energy is present wherever work is being done and can take many different forms depending on what we are working on. The important point is to be able to recognize where the waste is in our work and to always strive to reduce it. On page 175 of the 100th Birthday edition of 'Workplace Management' by Taiichi Ohno ( original Japanese edition 1982 ), Ohno is quoted as follows, and I think this explains all that needs to be said :

‘‘…people often talk ‘ about ‘the seven types of waste’. This might have started when the book came out, but waste is not limited to seven types. There is an old expression : ‘He without bad habits has seven’, meaning even if you think there is no waste you will find seven types. So I came up with Overproduction, Waiting etc., but that doesn’t mean that there are only seven types. So don’t bother thinking about ‘what type of waste is this?’ Just get on with it an do kaizen. ’’

( Quote on p 175, references on p 179 Workplace Management :Taiicho Ohno 100th Birthday edition. )

Top 20 Hospitals in USA all have Lean programs...and some have Six Sigma too !

Chris Alcock and I have recently been researching the penetration of Lean or  Six Sigma or Lean 6 Sigma in hospitals in the USA.

http://health.usnews.com/health-care/best-hospitals/articles/best-hospitals-honor-roll-and-overview

The above URL names the top 20 best hospitals in the USA, 2016,  according to a detailed study undertaken by the US News magazine. (See also text attachment)

So I started from the top, seeing which ones had undertaken Lean / 6S / L6S initiatives.

1st place Hospital - yes

2nd place Hospital - yes

3rd place Hospital - yes

4th place Hospital - yes

...

9th place Hospital - yes

10th place Hospital - yes

...

19th place Hospital - yes

20th place Hospital - yes

All yes!

We have the URLs of our research as evidence.

We also found evidence of the use of Lean Six Sigma ( not just Lean )...

...hallelujah!  

http://southfloridahospitalnews.com/page/2014_Year_in_Review__West_Palm_Beach_VA_Medical_Center/9733/1/

Cost Savings/Efficiencies

• Completed 18 LEAN/Six-Sigma projects with substantial sustained improvements; three were VA Network (Florida & Caribbean) award winners.

• Added three new dialysis stations to our unit with a projected savings in Non-VA Care of $500,000.

• Completed first renewable energy project by installing photovoltaic panels on two campus buildings that will reduce FP&L consumption by 50%.

 

 

Charleen R. Szabo is West Palm Beach VA Medical Center Director. For more information, visitwww.westpalmbeach.va.gov.

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Conclusion: Lean 6 Sigma is used by all of the best hospitals in the USA. And Virginia Mason wasn't even in the top 20!

That is a pretty powerful body of evidence in support of Lean and Six Sigma.

Does a Black Belt need to know and use CPM and PERT methods for project management ?

Hello,

I was just asked by Rene C. from Nice, France, while he was preparing for his Black Belt, if he needed to know the details of how to use Critical Path Method ( CPM )  or Program Evaluation and Review Tequnique ( PERT ) in order to be a Black Belt ?

This is a common question so I though I would repeat my answer to Rene here.

Rene,

In order to pass the Lean Six Sigma Black Belt exam ( whether it is IASSC, ASQ or any other examination body ) you will NOT be required to know about the details for how to calculate the Critical Path ( CPM) of a project or use the PERT method for project / activity duration.  You should be familiar will all the concepts of CPM, PERT, WBS and Gantt Charts however this is not tested in any detail in the exams.

A Lean Six Sigma Green Belt or Black Belts needs understand that in the IMPROVE phase of a DMAIC project you will need to 1.  Choose the best solution to correct the Root Cause of the problem  2. Pilot or Prototype the solution  3.  Provide a Control and Training Plan for the solution so you and then workers know what to do as soon as it is implemented  4.  Implement the solution into production / business-as-usual.

The details of the skills, tools and knowledge required for the Implementation part of the IMPROVE phase are part of the Body of Knowledge for Implementation Project Managers and are found in such courses as PRINCE2 and the PMP or CAPM certifications ( see PMP.org).   This is where you would be tested on the details of CPM, PERT, Network diagrams, Gantt Charts etc.

It is often appropriate for a a Black Belt to choose and appoint a separate Implementation Project Manager just for the Implementation part of the IMPROVE phase since the Project Management skills required for Implementation have a different focus than those of a Black Belt.

Here are 2 quick 5 minute videos covering CMP and PERT that give everything you need to know as a Black Belt,  but even this will NOT be tested in your BB exam.

CPM  https://www.youtube.com/watch?v=GG3548XNuhM

PERT   https://www.youtube.com/watch?v=CsJeCOzsJVs

I hope this helps.  Let me know if anything is still not clear.

Optimization : Making the most of what your customers want

During my years teaching in Lean Six Sigma I have found myself using the word 'Optimization' at least once a week during my classes...usually during the part about 'Designed Experiments' and 'Response Surface Methods' ,  however I have recently been thinking that the word 'Optimization' should be introduced to Students much earlier during the "Fundamentals of Lean Six Sigma'' sections of the class.  It strikes me that "Optimization' is the perfect ENGLISH word for the goal of Lean Six Sigma with regards to the Outputs of Processes and the resources that provide them in the process.   In general terms we want to Optimize the 'Value' of the Outputs 'in the eyes of the customer',  while at the same time 'Optimizing'  the use of our resources to deliver that value.  In less general terms Optimization needs to be applied to such Output measures such as Comfort, On-time Delivery,  Product Availability,  Product Purity, Battery Life,  Durability,  Price ...things important to our customers....while at the same time also Optimizing the use of our time, people  machines,  vehicles,  storage space, electricity, energy etc.

Kudos to Joseph Burk and his excellent book ' Cost Reduction and Optimization for Manufacturing and Industrial Companies'  in which he points out specifically that the concepts have been used in Operations Management in the west for decades,  however Lean Six Sigma still treats it as something 'new' and not a fundamental method/tool/principal.

Edward C. Lai  and his presentation ' Lean Six Sigma Optimization'  http://www.slideshare.net/elai1001/lssowebsite  does a good job of tying together the fact that Optimization is essentially what Lean Six Sigma is all about .... however it is still somewhat used only as a synonym for 'improvement' and does not examine how a mathematical model of a process can be Optimized for both outputs to customer and resources used by the process.

The Lean Enterprise Institute use the word Optimize twice when describing the essence of 'Lean' on its website http://www.lean.org/WhatsLean/  however unfortunately the word and the concept then does not appear again in its tools and techniques or major principles of Lean.

Optimization of both what is important to customers ( VOC ) and internal business measures ( VOB ) often involves conversion of the business problem into a mathematical problem,  and solving the mathematical problem.  This is of course what much of Six Sigma methodology is about,  so fits perfectly into the Lean Six Sigma tool set.    The mathematics is often quite complicated and will require advanced mathematical modelling skills,  however this does not mean that every Lean Six Sigma Green or Black Belt ( or even Master Black Belt ) needs to know the complex mathematics....that where external consultants / academics who are experts in mathematical modeling can be brought into our teams.  It is however important that all Green Belts and Black Belts are introduced to the concepts of Optimization and are clear how it is an important tool to be used in DMAIC ( A and I phases )...and is another fundamental Goal of Lean Six Sigma projects.  In summary I propose a statement such as 'Optimization of Customer most-valued outputs while also Optimizating the process resources'.
One last point... I believe that if the Japanese had introduced their word for it 'Saiteki-ka" and were using it in their TPS system,  then we would all be using it today in the West !   Too late for them ... let's stick with the Engish !

(Nice summary of the mathematical concept  below ( applied to Optimizing Shelf Space in a Supermarket)  and link to where you can read more about it ).

Optimization

Optimization is the science / process behind finding the best solution for a problem with given constraints. We come across optimization problems on a daily basis. These can be for finding the shortest path between your work place and office; maximizing revenues / customer happiness or minimizing costs / debts etc. We basically take a real world problem, model it mathematically and then solve it using mathematical techniques with in the constraints. Optimization is useful in Marketing, Manufacturing, Finance, Online advertising, Machine Learning and all fields you can imagine.
https://www.analyticsvidhya.com/blog/2016/09/a-beginners-guide-to-shelf-space-optimization-using-linear-programming/

Optimization : Making the most of what your customers want

During my years teaching in Lean Six Sigma I have found myself using the word 'Optimization' at least once a week during my classes...usually during the part about 'Designed Experiments' and 'Response Surface Methods' ,  however I have recently been thinking that the word 'Optimization' should be introduced to Students much earlier during the "Fundamentals of Lean Six Sigma'' sections of the class.  It strikes me that "Optimization' is the perfect ENGLISH word for the goal of Lean Six Sigma with regards to the Outputs of Processes and the resources that provide them in the process.  Why was it not used more by Toyota,  Motorola or in the books by Womack et al during the growth of Lean Six Sigma in the 1990's ?  In general terms we want to Optimize the 'Value' of the Outputs 'in the eyes of the customer',  while at the same time 'Optimizing'  the use of our resources to deliver that value.  In less general terms Optimization needs to be applied to such Output measures such as Comfort, On-time Delivery,  Product Availability,  Product Purity, Battery Life,  Durability,  Price ...things important to our customers....while at the same time also Optimizing the use of our time, people  machines,  vehicles,  storage space, electricity, energy etc.

Kudos to Joseph Burk and his excellent book ' Cost Reduction and Optimization for Manufacturing and Industrial Companies'  in which he points out specifically that the concepts have been ued in Operations Management in the west for decades,  however Lean Six Sigma still only uses the word either in a very general sense as a synonym for 'improvement'  or else in relation to Designed Experiments.

Interestingly enough,  Lean.org and the Lean Enterprise Institute  ( Womack, Jones, Shook et al ) use the work twice on their webpage giving an overview of Lean,  however it is then hardly mentioned as a tool/method/principle anywhere else.  See http://www.lean.org/WhatsLean/

Opimization is also not included at all in Thomas Pyzdek's 'bible' of Six Sigma,  The Six Sigma Handbook,  which is highly promoted by the ASQ as the 'go-to book'  on Six Sigma.

Optimization of both what is important to customers ( VOC ) and internal business measures ( VOB ) often involves conversion of the business problem into a mathematical problem,  and solving the mathematical problem.  This is of course what much of Six Sigma methodology is about,  so fits perfectly into the Lean Six Sigma tool set.    The mathematics is often quite complicated and will require advanced mathematical modelling skills,  however this does not mean that every Lean Six Sigma Green or Black Belt ( or even Master Black Belt ) needs to know the complex mathematics....that where external consultants / academics who are experts in mathematical modeling can be brought into our teams.  It is however important that all Green Belts and Black Belts are introduced to the concepts of Optimization and are clear how it is an important tool to be used in DMAIC ( A and I phases )...and is another fundamental Goal of Lean Six Sigma projects.  In summary I propose a statement such as 'Optimization of Customer most-valued outputs while also Optimizating the process resources'.
One last point... I believe that if the Japanese had introduced their word for it 'Saiteki-ka" and were using it in their TPS system,  then we would all be using it today in the West !   Too late for them ... let's stick with the Engish !

(Nice summary of the mathematical concept  below ( applied to Optimizing Shelf Space in a Supermarket)  and link to where you can read more about it ).

Optimization

Optimization is the science / process behind finding the best solution for a problem with given constraints. We come across optimization problems on a daily basis. These can be for finding the shortest path between your work place and office; maximizing revenues / customer happiness or minimizing costs / debts etc. We basically take a real world problem, model it mathematically and then solve it using mathematical techniques with in the constraints. Optimization is useful in Marketing, Manufacturing, Finance, Online advertising, Machine Learning and all fields you can imagine.
https://www.analyticsvidhya.com/blog/2016/09/a-beginners-guide-to-shelf-space-optimization-using-linear-programming/

Optimization : Making the most of what your customers want

During my years teaching in Lean Six Sigma I have found myself using the word 'Optimization' at least once a week during my classes...usually during the part about 'Designed Experiments' and 'Response Surface Methods' ,  however I have recently been thinking that the word 'Optimization' should be introduced to Students much earlier during the "Fundamentals of Lean Six Sigma'' sections of the class.  It strikes me that "Optimization' is the perfect ENGLISH word for the goal of Lean Six Sigma with regards to the Outputs of Processes and the resources that provide them in the process.  Why was it not used more by Toyota,  Motorola or in the books by Womack et al during the growth of Lean Six Sigma in the 1990's ?  In general terms we want to Optimize the 'Value' of the Outputs 'in the eyes of the customer',  while at the same time 'Optimizing'  the use of our resources to deliver that value.  In less general terms Optimization needs to be applied to such Output measures such as Comfort, On-time Delivery,  Product Availability,  Product Purity, Battery Life,  Durability,  Price ...things important to our customers....while at the same time also Optimizing the use of our time, people  machines,  vehicles,  storage space, electricity, energy etc.
Optimization of both what is important to customers ( VOC ) and internal business measures ( VOB ) often involves conversion of the business problem into a mathematical problem,  and solving the mathematical problem.  This is of course what much of Six Sigma methodology is about,  so fits perfectly into the Lean Six Sigma tool set.    The mathematics is often quite complicated and will require advanced mathematical modelling skills,  however this does not mean that every Lean Six Sigma Green or Black Belt ( or even Master Black Belt ) needs to know the complex mathematics....that where external consultants / academics who are experts in mathematical modeling can be brought into our teams.  It is however important that all Green Belts and Black Belts are introduced to the concepts of Optimization and are clear how it is an important tool to be used in DMAIC ( A and I phases )...and is another fundamental Goal of Lean Six Sigma projects.  In summary I propose a statement such as 'Optimization of Customer most-valued outputs while also Optimizating the process resources'.
One last point... I believe that if the Japanese had introduced their word for it 'Saiteki-ka" and were using it in their TPS system,  then we would all be using it today in the West !   Too late for them ... let's stick with the Engish !

(Nice summary of the mathematical concept  below ( applied to Optimizing Shelf Space in a Supermarket)  and link to where you can read more about it ).

Optimization

Optimization is the science / process behind finding the best solution for a problem with given constraints. We come across optimization problems on a daily basis. These can be for finding the shortest path between your work place and office; maximizing revenues / customer happiness or minimizing costs / debts etc. We basically take a real world problem, model it mathematically and then solve it using mathematical techniques with in the constraints. Optimization is useful in Marketing, Manufacturing, Finance, Online advertising, Machine Learning and all fields you can imagine.
https://www.analyticsvidhya.com/blog/2016/09/a-beginners-guide-to-shelf-space-optimization-using-linear-programming/