S23_BPM_Methodology_SixSigma_No Scott

S23_BPM_Methodology_SixSigma_No Scott - Process Improvement...

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Process Improvement Methodologies Six Sigma and Lean
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Typical Company Approach Eaton Lean Six Sigma ELSS combines Eaton Lean System and Six Sigma Combines sustainable process improvement and error reduction methodologies An essential continuous improvement tool Lean and Six Sigma must be applied together for optimum results.
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Lean Review A Manufacturing Definition: A philosophy that shortens the lead time between the customer order and the shipment by eliminating waste . Goals: Eliminate waste Reduce cycle time Reduce total costs Improve quality (Eliminate Defects) A Non-Manufacturing Definition: A philosophy that accelerates the speed of “any” process by eliminating waste in all its forms . [Focus: Process Flow]
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DEFECTS UNNECESSARY PROCESSING INVENTORY/ STORAGE TRANSPORTATION OVERPRODUCTION MOTION WAITING Lean: Waste Reduction 7 Wastes
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Lean Message to IT Folks? Message of Scott’s leaking pipe story for IT folks? Automate a bad process, what happens? Role of IT in process improvement (Lean view)?
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Lean – improve efficiency by eliminating waste Six Sigma – optimize process output by minimizing variation around rigorous quality target Lean and Six Sigma Managed Chaos Orderly & Well- Understood Flow Many defects Few defects Specification Limits
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7 What is the “Six Sigma” Concept? A statistical measure of the performance of a process or product A goal/outcome that reaches near perfection for performance improvement A quality control methodology/approach for improving a process via reducing defects and improving quality of outputs (DAMIC) AN APPROACH TO IMPROVE BUSINESS RESULTS WHO’S USING IT? Financial Institutions Financial Institutions Small Manufacturers Small Manufacturers Hospitals Hospitals Large Manufacturers Large Manufacturers Municipalities Municipalities Large Cities Large Cities Universities Universities Telecoms Telecoms Our Competitors Our Competitors Our Customers Our Customers Small Manufacturers Small Manufacturers Large Cities Large Cities Universities Universities
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Six Sigma - History Started at Motorola during the 1980’s Resulted in significant improvements and ultimately a Baldrige Award Made famous at General Electric (use linked to management bonuses) Adopted by many large businesses and now small ones Success stories (results $) has lead to the interest spreading in most large companies and many small ones
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This note was uploaded on 02/20/2012 for the course MIST 5750 taught by Professor Bostrom during the Spring '09 term at UGA.

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S23_BPM_Methodology_SixSigma_No Scott - Process Improvement...

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