134 A Laboratory Cage Match: Six Sigma vs. Lean. Sue Kozlowski MSA
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1 134 A Laboratory Cage Match: Six Sigma vs. Lean Sue Kozlowski MSA 2011 Annual Meeting Las Vegas, NV AMERICAN SOCIETY FOR CLINICAL PATHOLOGY 33 W. Monroe, Ste Chicago, IL 60603
2 134 A Laboratory Cage Match: Six Sigma vs. Lean This session will compare and contrast two popular quality initiatives, Lean and Six Sigma, using case study examples. Topics will include start-up analysis of resources and leadership commitment, fundamental similarities and differences in the approaches, when and how to use consultants, and the relative costs vs. benefits of each approach. Describe Six Sigma and its three key deliverables Discuss the lean approach, and its three key deliverables Evaluate which method will be most effective in a particular work environment FACULTY: Sue Kozlowski MSA Entire Pathology Team Professional Development, Leadership, Career Management Professional Development & Leadership 2.0 CME/CMLE Credits Accreditation Statement: The American Society for Clinical Pathology (ASCP) is accredited by the Accreditation Council for Continuing Medical Education to provide continuing medical education (CME) for physicians. This activity has been planned and implemented in accordance with the Essential Areas and Policies of the Accreditation Council for Continuing Medical Education (ACCME). Credit Designation: The ASCP designates this enduring material for a maximum of 2 AMA PRA Category 1 Credits. Physicians should only claim credit commensurate with the extent of their participation in the activity. ASCP continuing education activities are accepted by California, Florida, and many other states for relicensure of clinical laboratory personnel. ASCP designates these activities for the indicated number of Continuing Medical Laboratory Education (CMLE) credit hours. ASCP CMLE credit hours are acceptable to meet the continuing education requirements for the ASCP Board of Registry Certification Maintenance Program. All ASCP CMLE programs are conducted at intermediate to advanced levels of learning. Continuing medical education (CME) activities offered by ASCP are acceptable for the American Board of Pathology s Maintenance of Certification Program.
3 A Laboratory Cage Match: Six Sigma vs Lean Which method packs the biggest punch? Sue Kozlowski, MSA, MT(ASCP)SBB, DLM, Certified Six Sigma Black Belt (ASQ) Objectives At the end of the presentation, participants will be able to: Describe Six Sigma and its three key deliverables Discuss the lean approach, and its three key deliverables Compare and contrast the three major elements of each philosophy Evaluate which method will be most effective in a particular work environment Agenda Six Sigma Overview Lean Overview Six Sigma vs Lean Strengths Comparison What to Use When For More Information Q&A 1
4 Polling Question In Your Lab Experience in Lean or Six Sigma? 1. Neither 2. Beginning Lean or Six Sigma 3. Experienced Lean 4. Experienced in Six Sigma 5. Experienced Lean Six Sigma Polling Question - Skills Experience Level Six Sigma 1. No experience in either 2. Novice White Belt 3. Experienced or Certified Lean Facilitator, Green Belt 4. Experienced or Certified Lean Leader, Black Belt 5. Experienced or Certified Sensei, Master Black Belt Six Sigma 2
5 Six Sigma Methodology Project Protocol Define Measure Analyze Improve Control Teams Facilitator: Green Belt, Black Belt Leadership: Process Owner, Champion Six Sigma Approach Define the Problem Measure the Current State Identify the Customer Specifications / Tolerances Identify the Key Factors that lead to variation Solve for the most significant Factors Design of Experiments to test solutions Measure the Improved State Develop a Control Plan Six Sigma Terms Critical to Quality (CTQ) Voice of the Customer (VOC) SIPOC (Suppliers, Inputs, Process, Outcomes, Customers) Measurement System Analysis (MSA) Key Factors Statistical Analysis (t-test, ANOVA, Chi square, Mood s Median, Analysis of Variance) Failure Modes Effect Analysis (FMEA) 3
6 Six Sigma Three Key Deliverables Meet customer specifications Reduce the variation Minimize defects not only 1% defects (4 sigma) or even 0.01% (5 Sigma) but % (6 Sigma, or 3.4 defects per 1 million opportunities) Six Sigma - Strengths Customer-focused Rigorous statistical analysis Solve for Key Factors only Process control methods Control Plan to prevent relapse Six Sigma - Weaknesses Some customers don t have clear specifications Can be seen as not innovative Statistical analysis is difficult if the process is not in control Process not stable Process outcome not normally distributed Difficult to use when outcomes are subjective Needs statistical expertise Takes a LONG time (3 12 months for a team) 4
7 Polling Question SS Accomplishments Experience with Six Sigma 1. N/A not using SS 2. Just starting too soon for achievement 3. Positive experience, for where we are 4. Negative experience, for where we are 5. Huge positive impact Polling Question If negative Why negative? 1. Lack of leadership commitment 2. Poor training experience 3. Needed more hand-holding holding to start out 4. Didn t develop infrastructure (project documentation, pipeline, integration into performance evals) 5. Other Polling Question If positive What made the biggest difference? 1. Leadership commitment 2. Training experience 3. Hand-holding holding to start out & gain confidence 4. Infrastructure (project documentation, pipeline, integration into performance evals) 5. Other 5
8 Polling Question Where are you now? What s Your Status? 1. Thinking about starting SS 2. Beginning the journey 3. Moving forward 4. Still trying but stalled 5. Tried it but gave up Lean Lean Methodology Project Protocol Plan Do Check Act / Adjust Teams Facilitator: Lean Leader / Facilitator / Coach Leadership: Team Leader, Champion 6
9 Lean Approach Define the Problem Understand the Current State Process flow, data Analyze y the root cause of problems Develop countermeasures Try-Storm or pilot small tests of change Evaluate success Repeat Lean Terms 5S (or 6S): Sort Out, Set-in-order, Shine, Standardize, Sustain (Safety) Value and Waste Value Stream Map (VSM) One-Piece Flow Level-Loading or Line Balancing Visual Signals Error-proofing See and Solve Six Sigma Key Deliverables Reduce waste / effort in the process, to provide most value to customer Reduce cost / expense in the process, a reflection of waste reduction Produce continuous, even flow to the customer, ON DEMAND, maximizing value-added effort and content 7
10 Lean - Strengths Easy to understand common sense Incremental movement forward Build on easy / quick wins Very visual - engaging Easy to build team enthusiasm Lean - Weaknesses Value can be a relative term May not mesh with corporate culture, if topdown Feels fuzzy if not properly p focused Easy to go down the wrong path If environment is not changed, it s easy to slip backwards Can be misunderstood to not need data Polling Question Lean Accomplishments Experience with Lean 1. N/A not using Lean 2. Just starting too soon for achievement 3. Positive experience, for where we are 4. Negative experience, for where we are 5. Huge positive impact 8
11 Polling Question If negative Why negative? 1. Lack of leadership commitment 2. Poor training experience 3. Needed more hand-holding holding to start out 4. Didn t develop infrastructure (project documentation, pipeline, integration into performance evals) 5. Other Polling Question If positive What made the biggest difference? 1. Leadership commitment 2. Training experience 3. Hand-holding holding to start out & gain confidence 4. Infrastructure (project documentation, pipeline, integration into performance evals) 5. Other Polling Question Where are you now? What s Your Status? 1. Thinking about starting Lean 2. Beginning the journey 3. Moving forward 4. Still trying but stalled 5. Tried it but gave up 9
12 Six Sigma vs Lean Six Sigma vs Lean Focus on customer Big on statistical analysis Best with a process that is already repetitive, reliable Small, long-term teams Major impact on decreasing variation Needs a statistical process expert & problem-solving team Focus on customer Big on visual process flow Works with processes that are chaotic or streamlined Problem-solving l employees Incremental, but cumulative, improvement in process flow Needs people who can see waste and work together to remove it Polling Question What do you need? What s your overall situation? 1. Chaotic don t know if we re meeting target 2. Semi-chaotic meeting some targets 3. Somewhat stable meeting most targets 4. Pockets that are stable and in control (± 3 SD reliably meeting customer expectations) 5. Majority of processes are stable and within control limits (reliable) 10
13 Polling Question What do you need? What do you need? 1. Lean, to stabilize the process 2. Lean in some areas, Six Sigma in others 3. Six Sigma, to reduce variation 4. A combination of Lean Six Sigma 5. Neither of these will help me in my current situation Readiness Assessment The Benefits Operational improvement - dashboard results Develop / free up capacity Avoid lay-offs (reduce by attrition / redeployment / changing vacant positions) Leadership development - succession planning Improve customer satisfaction Improve employee engagement 11
14 The Costs Leadership effort and engagement Not just a hobby for others Employee time Training i & consulting expense HR effort performance evals, integrating training Tracking / monitoring system (people + computers) Deployment Models Toe in the door Small group, small project proof of concept DIY concept May not be enough to see impact Trial or pilot Small group(s), trained facilitator, medium project May or may not get lucky Deployment Models, cont. One Lucky Department Leadership on board, departmental training Initial mentored / coached project Will soon need to involve stakeholder departments (good!) Big Bang Immersion technique Big start-up effort 12
15 Are You Ready? Leadership Elements for Success A. > 90% executives committed to Process Improvement & willing to pay for the investment B. Understanding that it s a journey might not see WOW results for 6 12 months C. Ability to free up PI Leaders for extensive training (20 60 hrs) D. Ability to develop infrastructure dashboard, report-out / sharing events, HR integration Are You Ready? cont. Participant Elements for Success A. Process Owners can be identified B. Team members can attend (5 10 per team) C. Coaching is available to give confidence D. Tangible results (dashboard, environmental change, new forms or processes), and intangible results (morale, satisfaction) monitored with dashboard outcomes AND SHARED Polling Question: Lean vs Six Sigma? Who wins? 1. Lean is all you need 2. Six Sigma is the 800 Pound Gorilla 3. It s a draw I need a combination of Lean process flow & Six Sigma reduced variation 4. Neither of these are what I need 5. Don t know no opinion 13
16 Six Sigma vs Lean Summary Objectives At the end of the presentation, participants will be able to: Describe Six Sigma and its three key deliverables Discuss the lean approach, and its three key deliverables Compare and contrast the three major elements of each philosophy Evaluate which method will be most effective in a particular work environment References isixsigma.com Lean Enterprise Institute web site: Lean for Hospitals, by Mark Graban (lots of lab examples!) Lean Six Sigma; and Lean Six Sigma for Service, by Michael L. George Getting the Right Things Done, by Pascal and Womack Managing to Learn, by John Shook 14
17 Questions? From live audience From virtual audience 15
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