TRICARE Management Activity HEALTH AFFAIRS Version 1.0 Business Process Engineering & Process Improvement MODULE 6 Lean Six Sigma Problem Solving Methodology for BPE

Business Process Engineering & Process Improvement M6-2 Module Objectives At the end of this module, you will be able to:  Explain the relationship between BPR/BPI and Lean Sigma Six problem solving and process improvement.

Business Process Engineering & Process Improvement M6-3 Lean Six Sigma Problem Solving Methodology for BPE/BPI Six Sigma is intended to improve profits through defect reduction and improved customer satisfaction. It involves a systematic and analytical process identifying, anticipating and solving problems Jeston and Nelis

Business Process Engineering & Process Improvement M6-4 Six Sigma Development Six Sigma was first developed by Motorola in the 1980's to solve production problems of process variation, manufacturing defects and cycle-time.  General business-management philosophy focus: Meeting customer requirements Improving customer retention Improving and sustaining business products and services

Business Process Engineering & Process Improvement M6-5 Lean Processing Development The Lean processing philosophy started at Toyota in the 1940’s. Lean tools were developed to solve the problems of:  Poor productivity  Excessive waste  Customer dissatisfaction The lean philosophy focused on eliminating waste in a manufacturing process

Business Process Engineering & Process Improvement M6-6 Lean Six Sigma Concepts  Identify Value  Define Value Stream  Determine Flow  Define Pull  Improve Processes Value Stream Map

Business Process Engineering & Process Improvement M6-7 The Lean Six Sigma Integration  Lean Six Sigma combines the “Lean Processing” manufacturing and the Six Sigma focus Lean Manufacturing + Six Sigma Quality = Better Quality Faster  Lean Six Sigma is used to resolve problems then fully optimize business processes

Business Process Engineering & Process Improvement M6-8 Managing with Lean Six Sigma A Lean Six Sigma project:  Is not "owned" top-level management.  Merges leadership and frontline employee insight Lean Six Sigma management benefits include:  Upper management stays informed of front-line problems  Frontline personnel can resolve customer service issues  “Best Practices” are adopted organization wide

Business Process Engineering & Process Improvement M6-9 BPE/BPI Compatibility Factors Lean Six Sigma problem solving methodology and a BPE/BPI process management project could be mutually beneficial:  Both require strong top-level management  Use many of the same tools and methods  Improve processes benefiting the customer and the organization

Business Process Engineering & Process Improvement M6-10 Lean Six Sigma and BPE/BPI  Lean Six Sigma tools pre-date BPE/BPI  Lean and Six Sigma methods help solve problems  Lean Six Sigma is not a reincarnation of BPE/BPI  Lean Six Sigma adds competitive value to a BPE/BPI project  Lean Six Sigma focuses BPE/BPI projects on customer satisfaction

DMAIC to Improve Speed, Quality, and Cost Business Process Engineering & Process Improvement M6-11

DMAIC to Improve Speed, Quality, and Cost Business Process Engineering & Process Improvement M6-12

Business Process Engineering & Process Improvement M6-13 Six Sigma Concepts  Critical to quality  Defect  Process capability  Variation  Stable Operations  Design for Six Sigma

Business Process Engineering & Process Improvement M6-14 Six Sigma Skill Levels  Green Belt  Black Belt  Master Black Belt  Executive Leadership  Champions

Business Process Engineering & Process Improvement M6-15 Keys to Lean Six Sigma  Delight the Customer  Improve Processes  Use Teamwork  Use data and facts

Business Process Engineering & Process Improvement M6-16 A CTIVITY : Are the Measurements Reliable?  In your small groups, write down each of the objects in your group including your own.  Do not to talk or communicate with other members of your group during the exercise.  Measure and record the length, width and depth of your object, but do not let other group members see the recorded data.  After completing the measurement of your object, pass the object to another group member and again record the length, width and depth without disclosure to other team members.  After each member of your group has recorded the length, width and depth for all the objects in your group, instruct the group members to multiply the length, width and depth of each object to arrive at a single value--the Desk Space Factor (DSF) for each object.  Do not use calculators and remember no talking is permitted.  Turn over your paper and repeat the measurement process of all the objects without looking at their first set of measurements.

Lean Six Sigma and BPE/BPI Business Process Engineering & Process Improvement M6-17 When to use DMAIC When not to use DMAIC When problems are commonplace and not well defined When there are unknown causes of errors In complex situation with many variables Top management is not committed to improving the process with Six Sigma methodology Training and support for the Six Sigma process are insufficient A process is so badly broken that you need to start over from scratch or you are designing a new product, service, or process

Business Process Engineering & Process Improvement M6-18 Module Wrap-up  We discussed the purpose of adding the Six Sigma or Lean Six Sigma methodology to a BPE/BPI program  We explained the relationship between BPR/BPI and Lean Sigma Six problem solving and process improvement  We talked about the tools skill levels and key concepts of Six sigma and Lean Six Sigma  We had an activity to work with the Lean Six Sigma concepts of accuracy, repeatability, reproducibility, stability and resolution