Why am I here? GMOC – Fall 2009

Why the GMOC Course is Important For You You will gain a basic understanding and working knowledge of lean and six sigma fundamentals—focusing on continuous improvement You will gain an appreciation for and insight into important implementation challenges and truly realize… Lean is a practice of improvement, not a theory Lean is a system for visualizing and addressing waste Lean is a journey of learning via systematic improvement Six Sigma is a data-based methodology for complex problems Both are about people – managing for engagement Few MBAs have this elective content available Bottom line: You will be better prepared to contribute to your future organization’s path to excellence

Learning Objectives At the end of this course, you will be able to… Describe the need for lean and six sigma and the value they deliver to an organization. Explain why Lean Thinking is important for your management career. Tell stories about lean and six sigma in action. Know how to identify opportunities for applying lean and six sigma in your work. Contribute to improvement project design.

Major Items to Plan Individual Written Work (see syllabus for due dates) 5S Proposal: September 2 & 5S Report: September 23 Group Formation (see forthcoming email) - 4 to 5 students per group Group Deliverables (see syllabus for due dates) - A/P A3 Report: September 12 - Six Sigma Report: October 12 100% Attendance Target for In-Class Workshops - Classes September 9 and 10 & September 24 and 30

“Run Rules” for the Course Be here for all sessions Minimize disruptions leaving the room, arriving after class starts using laptop for non-GMOC learning activity Absences – prior notification, if possible Mutual professional respect (students, faculty, guests)

Comparison of Lean & Six Sigma Objective Deliver value to customer Theory Reduce variation Remove waste Focus Problem focused Flow focused Assumptions A problem exists Statistics are valued System output improves if variation in all processes inputs is understood & reduced Waste removal will improve business performance Many small improvements are better than large system analyses Please note that this slide takes a rather narrow view of both lean and six-sigma and does not extrapolate across the enterprise where the real bottom line benefits of both are realized. Few enterprises today implement either lean or six sigma in this narrow sense. Compare instances where/when one may be used over another: For instance, if customers are receiving poor quality products, one would choose Six Sigma to solve the problem. If customers are receiving shipments late, or the lead time for delivery is too long, one may choose Lean – or if poor yield is causing cycle time increases due to rework/scrap, one should choose Six Sigma because simply producing defective products faster may satisfy the customer, but will not improve the bottom line. Six Sigma is both a statistical process and a management tool. Some people ask whether six sigma or lean should be promoted first. There is no single answer – it depends on the enterprise, its level of maturity, resources available for training and deployment, and so forth. Both approaches require application of resources and stability of leadership commitment. Adapted from Nave, Dave. “How to Compare Six Sigma, Lean, and the Theory of Constraints.” Quality Progress. March 2002