Lean Six Sigma Course Training Part 2
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The document discusses key principles and benefits of Lean, including: 1) Lean aims to eliminate waste from processes to increase value-added time and reduce lead times and cycle times for improved customer satisfaction. 2) Implementing Lean at Dell resulted in significant savings of $12 billion, reduced order-to-ship cycle times from 11 days to 3 days, and increased margins and inventory turns. 3) Lean thinking combines the elimination of waste and continuous improvement to specify value, map value streams, establish flow, implement pull, and work towards perfection.
Lean Six Sigma Course Training Part 2
- 1. 1 Lean-Insight.com Lean Six Sigma Training Part 2
- 2. 2 Benefits of Lean . . . Any Process or Value Stream After Before Wait / Waste . . . Non Value Add Time Wait / Waste . . . Non Value Add Time Lean AttacksWaste Here Work . . . Value Add Time Work . . . Value Add Time Lead Time / Cycle Time Improved Customer Satisfaction •Reduced Cycles •Better Delivery •More Capacity •Better Quality •Productivity Cycle time competitive advantage drives growth - Gary Reiner Increased Process Velocity Lean-Insight.com
- 3. 3 Lean External Stories SignificantsavingsaccruedbyDellbyimplementingLean 11 Days Build To Inventory $12B (2%) 10 3% Order To Ship Cycle Time Strategy Working Capital Op Margin Inventory Turns ROI 5Min Make to Order ($9M) 8% 121 34% Lean at Dell Lean-Insight.com
- 4. 4 Executing Better/Faster Lean Thinking + Lean 6σ L E A N E N T E R P R I S E The best way to reduce variation is to focus on speed....done right – Gary Reiner Lean-Insight.com
- 5. 5 Lean Thinking Principles The continuous movement of products, services and information from end to end through the process 3 Establish Flow Nothing is done by the upstream process until the downstream customer signals the need 4 Implement Pull The complete elimination of waste so all activities create value for the customer by continuous improvement. Use all principles again, and again. 5 Work to Perfection Define value from the customers perspective and express value in terms of a specific product 1 Specify Value 2 Map the Value Stream Map all of the steps…value added & non-value added…that bring a product of service to the customer Lean Thinking Lean-Insight.com
- 6. 6 1. Value •Capability provided to a customer at the right place and time…as defined by the Customer •In Product Flow, Value changes Form, Fit or Function of the Product. In Knowledge Flow, Value is the addition of necessary knowledge or information. •Activities that add no customer value are Waste Create Value •The first step in Lean thinking. •Value can only be defined by the customer. •Must meet customer’s specific needs at a specific time at a specific price. •Clear understanding of who is the customer is crucial. Lean-Insight.com
- 7. 7 VALUE-ADDED AND NONVALUE-ADDED STEPS Lean-Insight.com
- 9. 9 What Will the Customer Pay For • dd.Non-Value Adding Process: Those process steps that take time, resources, or space, but do not add value to the product or service. Value Adding Process: A process step that transforms or shapes a product or service which is eventually sold to a customer. Value must be defined from the ultimate customer perspective and should not be skewed by pre-existing assumptions, technologies, and assets. The fundamental question that must be asked about every activity is whether the customer is willing to pay even one cent more for this processing step Lean-Insight.com
- 10. 10 Lean-Insight.com If you are looking for more details about Lean + Six Sigma training visit: http://lean- insight.com/six-sigma-training-bangalore/