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Datacraft Solutions Finds Practice Continuous Improvement Lean Answers

admin — Mon, 22 Mar 2010 06:24:47 +0000

According to Stephen Parker, CEO of Datacraft Solutions, “The Datacraft Solutions team believes in Continuous Improvement (CI), not only in manufacturing operations and supply chain management, but also in the Lean tools offered to our customers. CI in inventory and supply-chain management means the continuing pursuit of higher inventory turns, less stockouts and improved on time delivery in a challenging and ever-changing business landscape. This, in turn, requires fine tuning of the Kanban card-sets to reflect Sales and Operations Plans (S&OP), forecasts and a combination of other demand management factors.”

Kaizen (Japanese for “improvement”) is a philosophy that focuses on continuous improvement throughout all aspects of life. When applied to the workplace, Kaizen activities continually improve all functions of a business, from manufacturing to management and from the CEO to the assembly line workers. By improving standardized activities and processes, Kaizen aims to eliminate waste, Lean manufacturing.

Kaizen is a daily activity, the purpose of which goes beyond simple productivity improvement. It is also a process that, when done correctly, humanizes the workplace, eliminates overly hard work (“muri”), and teaches people how to perform experiments on their work using the scientific method and how to learn to spot and eliminate waste in business processes.

To be most effective kaizen must operate with three principles in place:

consider the process and the results (not results-only) so that actions to achieve effects are surfaced;
systemic thinking of the whole process and not just that immediately in view (i.e. big picture, not solely the narrow view) in order to avoid creating problems elsewhere in the process; and
a learning, non-judgmental, non-blaming (because blaming is wasteful) approach and intent will allow the re-examination of the assumptions that resulted in the current process.

The challenge is to do this in a simple process with minimal administrative overhead, and quickly. Working with Lean Thought Leaders and after five years of advanced research and development, we have created the industry’s first card releveling tool: Intelligent Card Leveling (ICL). Intelligent Card Leveling will be deployed this year in the third quarter.

Datacraft Solutions (www.datacraftsolutions.com) delivers a revolutionary digital kanban process of automation solutions to lean manufacturers through a secure Internet gateway, eliminating the need to install and maintain a complex IT infrastructure. The company has experienced significant growth in the past two years by eliminating complicated, expensive, time-intensive software implementations as well as extensive training regimens and the need for internal support. Datacraft Solutions’ replenishment supply chain digital kanban system (Signum) allows customers to access and utilize powerful lean benefits immediately for a low, predictable monthly fee. Services are scalable so manufacturers can design an appropriate digital kanban solution.

Datacraft Solutions

www.datacraftsolutions.com

Sonja Foust

sfoust@datacraftsolutions.net

800-819-5326

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Six Sigma And Healthcare

admin — Mon, 22 Mar 2010 02:48:30 +0000

Six Sigma methodologies aim at improving overall quality by eliminating defects and achieving near perfection by restricting the number of possible defects to less than 3.4 defects per million. Six Sigma methodologies were originally developed for implementation in the manufacturing sector but with time their use has spread to the services sector as well. In the services sector, Six Sigma concepts are used mainly for eliminating transactional errors.

Today, the concepts and methodologies of 6-Sigma are increasingly being used in the healthcare industry for improving the quality of services rendered, increasing efficiency, and eliminating human errors that can often prove fatal. However, the use of 6-Sigma in the healthcare industry is a relatively new phenomenon as compared to other service industries that have undergone some type of data-supported, systematic, quality-improvement process. With medical and technological advancements, the demand and expectations for improved medical care are continuously increasing. However, due to lack of effective management systems, inefficiency is increasing, which often leads to congested emergency rooms, customer complaints, and lost revenues.

Benefits

Six Sigma concepts and methods enable a healthcare organization to offer improved healthcare services to patients by streamlining business processes. In the healthcare industry, the quality of services rendered depends a lot on human skills, which is often very difficult to measure and control. 6-Sigma is effective as it is based on a comprehensive approach that focuses on improving both human as well as transactional aspects of a process. Although implementing Six Sigma concepts in the healthcare industry is a challenging task, it does help in getting quick results.

In the healthcare industry, the factors that determine the quality and efficiency are usually the flow of information and interaction between people. Six Sigma helps in streamlining the flow of information and achieving strategic business results by initiating cultural shifts all throughout the organization. 6-Sigma focuses on improving processes rather than just concentrating on the task, which helps in increasing the scope of improvements. It provides the necessary tools and methodologies that help in analyzing and transforming human performance, necessary for achieving significant long-term improvements.

Process

Six Sigma helps in defining a vision for the future, identifying specific goals, and establishing quantitative measures for turning that vision into reality. It helps in formulating goal plans and setting timelines for moving from current performance levels to Six Sigma performance levels. The plans are defined only after documenting their effects on the organization’s work processes’ that may include flow of information, surgical site procedures, handling patients, and others.

The basic requirements for successfully implementing Six Sigma programs are usually long-term vision, commitment, leadership, management, and training. It is important to provide the requisite training to doctors, nurses, and the administrative staff for making them aware about the various concepts and methodologies. The training may initially appear to be expensive, but is often worth the cost when one considers the benefits such as improved quality of services and increased efficiency. It is necessary for employees working in a healthcare organization to develop an understanding about the various Six Sigma concepts. This will help them in integrating new techniques into the Six Sigma processes for improving quality and effectiveness.

Tony Jacowski is a quality analyst for The MBA Journal. Aveta Solution’s Six Sigma Online offers online six sigma training and certification classes for lean six sigma, black belts, green belts, and yellow belts.

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Cutting Costs With Six Sigma

admin — Sun, 21 Mar 2010 15:06:07 +0000

Problems Faced By Companies On The Cost Front

On the cost front, most industries such as the manufacturing industry, service industry, health care industry and even the educational industry are all experiencing a great amount of pressure. As an example, hospitals are facing ever-decreasing compensation from insurance companies, which is a serious concern to many. Hospitals also experience the pressure of high labor costs and low productivity. This decline in revenue has come about due to the increase in costs and the ever-increasing competition. 6 Sigma has always been construed as a quality improvement tool, and quality has always been linked with high costs and expenditures. However, the efforts by the black belts and the master black belts to help save on costs have helped companies view Six Sigma favorably.

6 Sigma And It’s Contribution Towards Cost Cutting

Six Sigma was never intended to be used as a cost cutting tool; nevertheless it has made great contributions towards that end. The methodology of 6 Sigma employs unique ways to help cut costs in all aspects of business. Firstly, Six Sigma contributes towards customer servicing. The opinions of the customer alone help define the quality of the products and services provided by any business. By figuring out the customer’s needs; 6 Sigma can help by cutting down on any wastage like over-utilization and under-utilization of capacity. Six Sigma also helps stabilize process variation, which helps save on material conversion. Not only does this result in an increase and improvement in productivity and quality, but it also results in the reduced cost of rejection and re-working.

The reduction in Cost of Poor Quality (COPQ) is massive considering the overall tremendous savings coming from practically no rejections. This has come about due to the graduation from three or four sigma to 6 Sigma. For example, in the case of a hospital, after utilizing the Six Sigma methods in it’s cardiology department, the hospital can cut down the average process time that is necessary for admission. This produces a dual-advantage. The first one being that the reduction of almost 45 minutes of the process time will lead to a decrease in labor costs. Secondly, the hospital department can now accommodate a larger number of patients because of the increase in the productivity.

The doctrines of total customer satisfaction and returns on investment are the main areas of focus. The 6 Sigma team helps generate innovative and creative ideas that are aimed at controlling costs. The team then helps employ risk management schemes and devises that lead to the early detection of various risk factors. An increase in yield from project portfolios will lead to an increase in resources resolving matters of risk.

The Biggest Challenge Faced By Six Sigma

The biggest challenge faced by 6 Sigma is from the outsourcing or off shoring of business processes. The developing third world countries have a lower cost structure and are attracting the large corporations offering them a chance to increase their overall return on investment. This is a process that is being engaged by medium and small-sized businesses, as the larger corporations have experienced significant success using outsourcing.

Continuous Improvement Yields Impacts From Datacraft Solutions

admin — Sun, 21 Mar 2010 07:06:40 +0000

To be most effective kaizen must operate with three principles in place:

Datacraft Solutions

www.datacraftsolutions.com

Sonja Foust

sfoust@datacraftsolutions.net

800-819-5326

Professional Marketing Firm

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Six Sigma In The Insurance Industry

admin — Sun, 21 Mar 2010 03:16:35 +0000

6 Sigma concepts and philosophies were originally developed for improving the overall quality of business processes in the manufacturing sector. Companies like Motorola and GE were among the first few that successfully introduced Six Sigma concepts in their business processes. However, with the development of newer tools and techniques, 6 Sigma is now deemed appropriate for the services sector as well. The usability of Six Sigma in the services sector is easily evident from the increasing number of finance and insurance companies that are opting for 6 Sigma.

Consumers are increasingly becoming aware of the quality of services being offered to them, making it essential for the services industry to implement quality improvement techniques like Six Sigma for conforming to customer expectations. This is especially true for the insurance industry where the relationship between the insurer and the insured is still largely governed by sustained personal contact. By implementing 6 Sigma programs, insurance companies have been able to offer quality services at affordable rates to their customers.

Identifies Key Business Processes

Unlike other quality management practices such as Total Quality Management (TQM) whose effectiveness is difficult to measure, Six Sigma based improvement programs make use of statistical tools, which can measure the effect of changes being made in a very short time. 6 Sigma focuses on process orientation, enabling organizations to identify key business processes that are necessary for improving customer satisfaction. This helps managers in understanding the exact requirements of their customers and in altering business processes to suit customer needs and expectation.

Follows A Disciplined Approach

Six Sigma has helped insurance companies in improving quality as well as reducing costs of services offered. It has enabled insurance companies to follow a disciplined approach, which has helped in preventing errors, minimizing hand-offs, and eliminating rework and workarounds. It has also helped in increasing the speed of business processes used in the insurance industry.

Helps In Making Informed Decisions

6 Sigma has enabled managers in taking informed decisions based on statistical data. With the use of Six Sigma tools and techniques, managers no longer have to rely on their perceptions or gut feelings for rendering the level of services promised to policyholders, clients, and prospects.

Helps In Building Customer Loyalty

6 Sigma emphasizes on understanding the needs of the customers before making any changes to business processes. This helps insurance companies in building customer loyalty among their policyholders, which is necessary for the long-term success of any business organization. Insurance companies can also hope to increase their market share, as satisfied customers are most likely to recommend a company that offers quality services while advising a friend, relative or business associate.
Helps In Reducing Costs

Six Sigma tools and techniques aim at streamlining business processes in such a way that helps in reducing costs. This helps insurance companies to improve their savings and avoid drastic cost-saving measures such as downsizing, which can have a negative effect on employee morale. It can also create doubts in the mind of policyholders and prospects as downsizing usually attracts a lot of negative publicity.

6 Sigma has helped the insurance industry in bridging the gap between planned strategies and actual operations by providing analytical and in-process performance measurement tools. These tools are used for comparing planned goals and objectives with actual outcomes and for finding the reasons as to why a particular business process is not giving the desired results. Once the exact problem has been pinpointed, managers can make the necessary changes that will help in improving overall quality of services rendered to policyholders and prospects.

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Short Cuts To Six Sigma Success

admin — Sat, 20 Mar 2010 15:31:20 +0000

Six Sigma is usually associated with the complete overhaul of existing business processes, to reduce shortcomings and improve the quality of goods and services. Due to this belief, many companies with insufficient resources often avoid implementing the 6 Sigma concepts and methodologies in their business processes. These companies are often unaware that the Six Sigma concepts and methodologies can also be implemented with innovative shortcuts. These shortcuts are known to have the same affect on the quality as the standard 6 Sigma implementation processes.

Avoid Time Consuming And Costly Implementation Processes

The standard Six Sigma implementation techniques involve expenses on the technique applied for assimilation of customer input. This is done with the intention of designing new products and processes, for the benefit of the clients. The basic problem is that it is a tedious task to quantify customer input, which is often as vague as ‘more stylish’, ‘less expensive’ or ‘better than X brand’.

A company that does not have the adequate resources to quantifying such vague requirements can simply skip this step and move on. There is not much to lose, since it is an established fact that most customers look for quality, affordability and style. It is often a waste of valuable resources when companies spend large amounts of money on understanding these common requirements of customers, over a period of time.

Avoid Standards And Generalizations

In large organizations, the top executives spend a lot of time on the implementation of the Six Sigma projects. However, in small and medium sized companies, the top executives are often too busy to look into the Six Sigma programs. 6 Sigma projects can be successfully implemented even without the support of the top executives. It is a general misconception that Six Sigma programs can only be executed when everyone, from executive to clerk, is involved in the project.

Opt For The Most Cost Effective Six Sigma Training

Although it is necessary to provide training to employees involved in the 6 Sigma implementation project, companies often go overboard by following the set standards of 160 to 240 hours of Black Belt training. Conscientious employees do not require such extensive training, as they are already aware of the quality expectations of them. Companies can save time and reduce training costs by opting for training programs that concentrate more on the techniques that are new and haven’t been addressed before.

The most cost-effective way is to opt for the online training programs. They are not only less expensive but also enable employees to access the information and learn in their free time. In this way, companies can ensure that the productive time of employees is not wasted on Six Sigma training.

Use Innovation And Creativity Wherever Possible

Although Six Sigma methodologies make use of the latest statistical tools and techniques, most of the basic quality improvement concepts and philosophies are based on motivation. Instead of using the set standards, companies can devise their own innovative methods and techniques that could help in achieving the same results. In this way, companies can easily tap into the benefits associated with Six Sigma programs in a shorter time span.

Fewer Stockouts With Datacraft Solutions Part of Continuous Improvement

admin — Sat, 20 Mar 2010 07:48:42 +0000

To be most effective kaizen must operate with three principles in place:

Datacraft Solutions

www.datacraftsolutions.com

Sonja Foust

sfoust@datacraftsolutions.net

800-819-5326

Professional Marketing Firm

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Fundamentals Of Six Sigma Training

admin — Sat, 20 Mar 2010 03:44:30 +0000

Six Sigma professionals have the requisite expertise and experience in implementing Six Sigma projects and their services are necessary for ensuring the success of the implementations. However, not all organizations can afford such services because 6 Sigma professionals normally charge hefty fees. The best option then for such organizations is to provide Six Sigma training to their existing employees. Training existing employees not only helps in reducing implementation costs but also ensures that the implementations are completed within the specified time.

However, selecting the most appropriate training course for employees may not always be easy because of the recent increase in the number of entities offering 6 Sigma training courses. The problem is compounded because most of the training entities claim to be the best in the business.

Organizations can develop their own training institutes, but this can further complicate the financial health of an organization that is already running short of funds. The best option then is to select the most cost-effective training program for the employees. Given below are some of the basics that a good 6 Sigma training program should always have:

1. The training program should cover important Six Sigma methodologies such as DMAIC (define, measure, analyze, improve, and control) and DMADV (define, measure, analyze, design and verify).

2. The training program should aim at creating awareness about the roles and responsibilities of personnel associated with 6 Sigma implementations. It should make the employees learn the tenets of effective communications, which is a necessity for successful Six Sigma implementations.

3. The training should cover all types of Six Sigma statistical tools such as Critical Path Method (CPM). CPM helps in designing a proper timetable that predetermines the start and completion of key events in any business process. With the help of CPM, employees can easily find out the exact status of various projects by monitoring key events through the CPM timetable. Other important statistical tools that need to be covered include FMEA (Failure mode and Effects Analysis), which helps in anticipating future problems through analytical interpretations.

4. The training should enable employees to learn the use of software tools such as RapAnalyst, which simplifies DOE (Design of Experiments) and many other activities related to data mining; MiniTab and SixNet Intelligence; and the 6 Sigma calculator, which is a hand tool. The training should also cover the use of judgmental tools such as Ishikawa Root Cause Analysis Diagram (Fishbone diagram), Brain Storming & Affinity Group Tool, Thought Map, and Regulation Diagram.

5. The training should also enable employees to learn soft skills such as presentation skills and managerial skills such as decision-making. These skills will go a long way in ensuring the success of 6 Sigma implementations.

A 6 Sigma training program that covers all the aspects stated above needs to be selected, even if it is relatively more expensive than other available training programs.

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Six Sigma In IT Project Delivery

admin — Fri, 19 Mar 2010 15:58:07 +0000

Software development, hardware implementation and testing in the IT domain make IT a big user of processes and therefore compatible to Six Sigma applications. Six Sigma analysis is initiated by formulating a problem statement. A classic example is a case at Raytheon Aircraft. There, the entire IT team has undergone some sort of 6 Sigma training. The problem was an abnormally high number of servers for which no plausible reason could be found. The Six Sigma team identified the problem to be separate servers for each application. Defect removal was done through a logical and secure sharing of servers between many applications. Applying 6 Sigma methodologies to tackle the problem, a 40% consolidation in servers was achieved adding attendant time and labor savings to the bottom line.

Problem Solving Through DMAIC

DMAIC in Six Sigma is an approach to problem solving, which breaks down problem evaluation into five separate and distinct steps. These are: define, measure, analyze, improve and control. Different organizations apply different tools selected from among a wide variety of choices at each of these stages. IT personnel are familiar with some of them, such as Scatter diagrams, Pareto charts and histograms. Others like House of Quality or Voice of the Customer may not be familiar sounding in IT but are, nevertheless, essential customer-centric tools.

Another Six Sigma approach for removal of process defects at the design stage itself is known as Design for 6 Sigma and is used only by those having already mastered the DMAIC system/methodology. Leading CIOs and industry watchers suggest the following for getting the best results from Six Sigma in IT.

Pick The Right People

Pick Sigma Green Belts, Brown Belts or Black Belts who are categorized on the basis of the training they have received in 6 Sigma techniques. Trained experts would form teams, which are constituted to tackle a particular problem or process and thereafter disband to form another team for tackling another process at a different time, may be with different people, all trained in Six Sigma. Selection for training should ensure picking up highly motivated employees that will result in creating a high performance team. Another important point is to give them a project right after training without allowing any time gaps.

Adhere To Six Sigma Methodologies

Generally, IT people do not go ahead with untried methodologies until they have tried out tools with which they are familiar. Experts sound a note of caution against this and say that throwing technology at a business problem results in a bad process with new technology. If the process is free from defects, then technology can be used to take it to greater heights.

Focus On Defect Removal And Improvement

While 6 Sigma tenets are supposed to be religiously followed, they should not be treated as the be-all, end-all. The aim should be to reduce defects and to continuously streamline and improve the process conducting regular evaluations.

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Six Sigma Cynics: Convincing the Disbelievers

admin — Fri, 19 Mar 2010 08:30:13 +0000

In any organization, the first deployment of a Six Sigma project is bound to encounter some level of resistance. Sometimes, opposition to the methodology is based on territory; department heads may be unwilling to cede control of their resources. Other times, the resistance may be due to a simple lack of belief in the approach. That is, employees, managers, and department heads may be unconvinced that the initiative will yield measurable benefits. In many cases, the staff may have been exposed to a series of faddish process improvement assignments only to watch them be dismantled and discarded. As such, it’s hard to begrudge them their skepticism.

The challenge for Six Sigma teams is to identify the disbelievers and encourage their adoption of the methodology. Below, we’ll explore the factors that separate the believers and disbelievers. I’ll explain when senior management needs to get involved and their role in changing their organization’s culture. I’ll also describe how Kaizen can be used as an effective transformational tool.

What Separates The Believers And Disbelievers

Before building a road to conversion, it’s important to first define why the cynics are skeptical of the Six Sigma methodology. As noted, one of the reasons is due to watching the adoption and subsequent abandonment of other process improvement disciplines. But, that obstacle is relatively simple to overcome. Far more problematic is that many skeptics have a cynical perception of the approach due to receiving training that was either insufficient or poorly presented.

Similarly, supporters usually comprise two distinct groups. The first group is made up of those who are naturally drawn to the precise analysis of metrics and the application of solutions based on statistics. These converts often hail from fields that are non-technical in nature. The second group of supporters come from backgrounds that rely heavily upon numbers, statistics, and analysis. While typically less enthusiastic than the first group, once they have bought into the Six Sigma approach, they become dependable and devoted resources.

When Executive Leadership Gets Involved

While the project team – including Black Belts and Champions – can be instrumental in converting skeptics, the conversion is usually slow. When time permits, it’s performed individually due to a lack of resources. Eventually, senior management must get involved. The CEO and top-level executives can exert influence that Black Belts and Champions cannot.

Every initiative must have the full support of an organization’s executive leadership for a successful implementation. If skepticism exists, that support is vital in order to remove roadblocks and convert cynics.

Changing The Culture Through Kaizen

Many managers who deal with a large population of skeptics look to Kaizen for popularizing the Six Sigma methodology. To be sure, it can help. Encouraging employees to pursue process-related efficiencies and making them accountable for smaller continuous improvements can slowly change the culture within an organization. The problem is making the transition from a Kaizen-based initiative to the rigorous quantitative analysis employed by a Six Sigma project. If that transition does not happen quickly enough, employees may come to focus too heavily upon Kaizen. When that happens, it becomes another obstacle to the project.

Every organization copes with some level of skepticism when introducing a new methodology for analyzing and improving business processes. If previous attempts have been made and abandoned, the level of skepticism is likely greater. Whether Six Sigma is being implemented as a first attempt at process improvement or a “last try” after a series of failures, the disbelievers can be converted. Once they are, a successful deployment is far more likely.

BMGI, a leading education and consulting firm in the innovation education field regularly posts information on six sigma at http://www.bmgi.com