Why am I here? GMOE – Spring 2010

Why the GMOE Course is Important For You You will gain a deeper understanding and working knowledge of lean and six sigma —focusing on g continuous improvement You will gain an appreciation for and insight into important implementation challenges and truly realize… Learning Lean is about practice of improvement, not a theory Lean is a system for visualizing and addressing waste Six Sigma is a data-based methodology for complex problems Both are a systems design and implementation Both are about developing people and stimulating their mind and heart Few MBAs have this experience in School 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 managing the “thinking” aspects of lean and six sigma is important for your career. Tell your 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 systems design.

Major Items to Plan Group Formation (see forthcoming email) - 5 students per group; names by March 22 Individual Written Work 5S “Bad Normal” Application: March 24 5S Report: April 19 Group Deliverables - A3 Report: April 2 - Six Sigma Report: May 7 100% Attendance Target for the In-Class Workshops - Classes March 25, April 23 and April 28

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

Comparison of Lean & Six Sigma Objective Deliver value to customer Theory Reduce variation Remove waste Focus Complexity Problem focused Flow (speed) 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