Lean Six Sigma Yellow Belt – Core Concepts of a Lean or Six Sigma Organization

1. Kaizen

Kaizen means to change for the better. In Japanese, the most popular English equivalent is continuous improvement. The philosophy or culture of kaizen is one of continuous, incremental and sometimes instant improvements. It is sometimes confused for a project. But make no mistake, kaizen is not just a project but rather something that we internalize. It is a culture in itself. At times we may have activities such as the Kaizen Blitz which is concentrative, highly intensive activity designed to make rapid improvements quickly and efficiently. We sometimes mistake continuous improvement for an immediate change in organizations. And sometimes the change may seem almost that fast. But more often than not, through the use of methodologies and various problem solving tools we invoke an environment of change and improvement that happens over a period of time. A good practice within a continuous improvement strategy is to hone in on a problem area as your target.

Then, through powerful tactics and various opportunities for kaizen we begin to remove these pain points and issues found within organizations. One method that is commonly used for solving problems is the PDCA method. PDCA stands for plan, do, check and act. The methodology was created by Dr. Demming some time ago and provides a basis for many methodologies developed today. Some other methodologies you may be familiar with are the Six Sigma Demaic method which stands for Define, Measure, Analyze, Improve and Control or our own personal favorite Lean Strategies International’s Treat one Two, Three method which has been used in many organizations quite effectively. But whatever methods you use, the idea for continuous improvement is always the same. We have a standard and then through various tactics and development we raise the bar again and again and again and over time we just keep getting better. Just remember, kaizen or Continuous improvement is much more than just a project.

2. Customer Focus

Let’s recall real quick for a moment that Lean is an operational excellence strategy that enables us to change for the better. We can summarize this by saying Lean is a culture. The culture of Lean creates teamwork, collaboration and requires us to develop employees and each other. Lean organizations do this us through establishing standards and utilizing various methodologies and tools to identify real root causes and forms of waste. It seems to happen naturally, but Lean organizations are just more efficient and happier. We are probably beginning to understand by now that all of the methods and tools used in a Lean strategy affect the customer in some way. For that reason, we should define exactly what a customer is in Lean. We look at the customer from beginning to end. This means both internal and external customers. The first type of customer is the internal customer. This is the person that is next in line of the value stream or process line.

They are who you hand your work to internally to keep the job moving forward. The next form of a customer is the one at the end of the line. Finally, the external customer. This is the person who receives the completed product and ultimately pays for the product or service. Now, we should remember that value to a customer is what they are willing to pay for. This is why it’s so important to ask yourself in a process and try to understand from a customer standpoint would I be willing to pay for that? Well, that brings us to an important point in the course where we should define what value added is to a customer and what non value added is to a customer. Being able to define what category your work activities fit into is an important tactic for improving the amount of valueadded activities within your organization. Let’s take a look at this concept in the next modules.

3. The three categories of work

Well, welcome back. When we speak of the eight forms of muda, we often identify them as nonvalue added activities. Similar to nonvalue added work, we also have valueadded work and business necessary work within our organization. These three categories help us to define, understand and categorize the work activities that take place within our organizations. Having now learned about the three origins of waste and the eight forms of muda, it is important to understand where activities fall in your organization. As an aside, if you have not yet watched the overview on waste, please go and do that before proceeding. Okay. Well, by the end of this lecture, you will understand exactly what the three categories of work are within any work organization. Next, we will discuss why it is so important to identify the category of each work activity. And finally, we will close this lecture out with a few examples of how you can begin to make the classification of each activity visible so that you can move towards eliminating or reducing non value added activities in your organization. Okay, let’s get started by first sharing what the three categories of work are.

The three categories that any work activity can be classified in are value added activities, non value added activities, and business necessary activities. The three categories are used to help us identify and understand what adds value and what does not add value in the overall value stream. Value added activities usually only make up about 15% to 20% of the value stream. In an organization, a value added activity has three qualities to it. Those three qualities are one, the customer must be willing to pay for the activity. Next, there should be some form of transformation or change in the product or service as value is added through the value stream. Finally, the action, activity or service must be performed correctly the very first time. We can summarize those three qualities by saying a valueadded activity is an activity that is done correctly all the way through the creation process and adding value in the eyes of the customer at each stage of the value stream. Now, if you remember correctly, mooda or the non value added activities that exist in the value stream are activities that must either be redone because they weren’t done correctly the first time and do not transform the product or service in any way as a result of their activity.

Additionally, the easiest way to identify non value added activities is to simply define what activities the customer is willing to pay for and what activities they are not willing to pay for. The activities they refuse to pay for are considered waste, which we refer to as muda. The final category that is the easiest to confuse and the hardest to identify clearly is referred to as business necessary or business value added activities. Business value added or BVA, as it’s often abbreviated, are often activities that are not considered value added to the customer. However, they must be performed to either protect the organization or comply with regulatory and legal requirements. These types of activities often fall into this is the way we’ve always done a group. But make no mistake about it, you should try and eliminate or reduce these activities as much as possible as they add no value and eat up your precious resources. Here is an example of an organization’s value stream. This organization just began mapping some of their processes out. Like many other organizations, they found that over 70% of the activities in the company were absolute waste or activities that the customer would not agree to pay for. A little surprised the company finds out that by pushing machines harder and faster than they should run and asking workers to try and meet demand, they were expediting the value added portion of the value stream which as you can see, provided only 20% chance of improving the overall value stream. Like every other company who engages in the identification of value added and non value added, it’s obvious that by focusing on the non value and business value added activities, there is far more opportunity of improving the organization’s value stream.

Now that example shows us that while there is still value in improving machines and working hard every single day, there is far more opportunity in removing the activities that are wasteful in your organization. Yes, I know increased opportunities often is not convincing, so let’s be specific. Identifying value added and non value added activities helps to clarify customer needs and wants, which results in increased sales and a better level of service. Additionally, by clearly understanding non value in a value stream, you can plan improvements and eliminate waste, creating more visibility, velocity and far less variability. Finally, eliminating wasteful activities helps you to utilize your investments and resources to their fullest capacity. The most effective way to identify and make visible waste in an organization is to map the process out. This helps you to see the flow of the value stream while clearly showing waste and separating it from value.

As you can see here in our Treat One Two Three problem solving methodology, the non value added activities are identified with red dots. This helps us to gauge the amount of waste within the value stream. While we won’t drive into value stream mapping completely, in this course the basic steps include laying out material or activity flow, identifying the appropriate process data and connecting the material or activity flow with the information flow. After totaling up data and any other additional inputs or outputs that might be associated with the process, you can identify value added activities, non value added activities and business necessary activities as shown here in this example.

Well, that wraps up our lecture on the three categories of work activities which are value added, non value added and business necessary or business value added activities. It is very important that you understand this concept as you progress through your lean journey. So before you go, let’s test it out really quick. Shown here is an individual transporting materials to another area. Is this activity value added non. Value added or business value added nonvalue. Remember, transportation is muda. How about this one? This gentleman is machining a raw material into a component. Well, that’s value added. We have transformation happening, and it looks like he’s doing it correctly. But how about the material sitting on the floor next to him in queue? You got it. That’s muda in the form of waiting. Well, until next time, keep identifying waste and keep on improving, and we will keep on giving you solutions that ignite your power. Talk to you soon.

4. Standardization overview

Well, hi there. I’m Cameron Hansen with Lean Strategies International, LLC. Have you heard of standard work? I bet you have. But if somebody were to ask you what standard work was standardization is, or what standards are, how would you explain that to them? Well, that’s exactly what we’re going over today. In fact, by the end of this video, you will not only be able to define standard work, but you may be looking into standardization and standards to begin your continuous improvement journey. Well, I’d like to give you a warm welcome to this overview of standards and standardization. Now, this topic can be a bit confusing, but in this overview we will help clarify what exactly standardization means. By the end of this lecture, you will understand what exactly standards are. You will also have a better understanding of how standardization can benefit your company. And last but not least, you will understand just why it’s so important that we have standards in our businesses. Well, let’s start things off by first defining what standardization means.

Officially, standardization is the function of setting and or bringing materials, processes and or procedures into conformance with a standard. The standard may be preset or just being established. Standardization can also be described as the process of implementing and developing the best and most reliable approaches as standards. Additionally, standardization can assist in maintaining compatibility, safety, and reduction of variation, and also improving quality. Now, in general, there are four main steps to the standardization process. The first step is to define or identify a standard. Oftentimes this can be done through yokoten or the sharing of best practices, benchmarking, or simply using some form of data. The second step is to gain consensus on the standard. That means everyone must understand the standard and it should be made visible so that the standard is not forgotten. Next, we want to ensure that the standard is reachable and will not crush the spirits of our most important resources, those being our employees. Lastly, we should confirm the standard, ensuring that it is fair for all parties involved. Additionally, a standard does not create a restrictive, nonthinking organization, but rather they are meant to create repetition and learning and also to assist everyone in the organization.

And one last thing, standards are not created by leaders and forced upon others as implied earlier. They are meant to be fair for all parties involved. Well, those three should not point us firmly in the direction of shoulds. By creating a clearly defined starting point, you can identify abnormalities, close gaps, and make visible forms of waste that may be otherwise hidden in a process. One last benefit we would like to mention before wrapping this overview of standardization up is how much easier standards make employees experience, no matter how much on the job experience those employees have. Here are two examples of standard operating procedures. Number one, the standard should be simple and easy to understand. Number two, it is small enough to be placed closest to the point of use. Number three, it can be given to anyone to be used as a training tool and they can understand it. Clearly, our point is probably very clear, but using standards is very powerful for everyone.

Anyone can look at the standard and know how to successfully complete their job task. Now, let’s close things out with one simple question. Remember, more often than not, lack of standards will place something in jeopardy. Some examples are delivery cost, spirit of employees, or it could even jeopardize quality. Well, hopefully that gives you a few ideas of where you can start creating standards. Now, in later lectures, we will take a look at the various types of standardization and we will walk you through the creation of a standard operating procedure that will help you start your journey in creating standards in your organization. Don’t forget to share with us where you could benefit from standardization. And until next time, keep on improving and we’ll keep on giving you solutions that ignite your power. Speak to you soon.

5. How do you define a problem?

Well, hello there folks. I’m Cameron Hansen here with Lean Strategies International, LLC. As continuous improvement advocates and leaders, we have an interesting purpose at our organizations. Some might describe that purpose as problemsolving specialists. Whether you’re new on your journey or a seasoned veteran, today’s lecture on defining a problem will most certainly give you some new ways to look at issues in your organization. Okay, let’s get started. By the end of this lecture, you will know exactly what a problem is, the three different types of problems you may come across. And finally, we will explain how the use of practical problem solving methodologies can help you solve your issues. Now, let’s attach a definition to the question what is a problem? Well, specifically, a problem is a deviation or gap between what is actually happening and what should be happening. Another way to look at a problem is any customer need that is not met on time, in the right amount, and in the acceptable quality. Okay, well, given that definition, we know that a problem oftentimes includes a gap, a deviation, or unfulfilled need. And that leads us into our next learning objective for this lecture where we find out what are the three different types of problems? The first type of problem is when the standard is not met.

Our second type of problem is closely related to not meeting a customer’s needs. That type of problem is best summarized by saying the standard is being achieved, but a new higher standard is what the customer now requires. Now, if we go back to our on time delivery schedule example, let’s just assume the gap has been closed. We are now performing at 100% on time delivery and meeting the proposal lead time of one week. Now the customer requests that our one week lead time be reduced to a three day delivery and they still require us to be 100% on time. The last type of problem we mentioned in our definition uses the word deviation. These types of problems are commonly spoken of amongst seasoned Lean and Six Sigma practitioners. The last type of problem is when performance varies or is not consistently achieved to the standard.

Okay, now that we can define what exactly a problem is, and we are now aware of the three different categories problems can normally be classified in, we can focus in on why problem solving methodologies are so effective. One of the first reasons having a standard methodology or problem solving approach can really be a good addition to an organization is that it removes the time spent figuring out what approach to take. The next reason for using standard methods of problem solving is that when everybody has a clear understanding of how the methodologies work, they are better able to plan, prepare and reach a root cause that will ensure that the problem does not happen again. While our third and final reason for establishing and using problem solving methodologies is mainly focused around empowering employees.

By giving employees a practical approach to problem solving and allowing them to repeat the methodologies multiple times, their mind begins to understand and adapt. Ultimately training them or their mind to understand each step in the methodologies process, they begin to think like a problem solver. Okay, well, now that you have a better understanding of why standard problem solving methodologies are used, here are a few examples of methods that are used quite effectively in many different problems. One of the very well known approaches to problem solving is the Six Sigma Domaic approach. This approach has been used effectively in reducing process variation and improving quality in an environment for some time now. Domaic stands for define, measure, Analyze, Improve and finally Control. Treat stands for tear down, review, Examine, advance and finally, then Normalize.

The one two three at the end of the treat one two three implies that the user should repeat three times for the current state, the future state, and finally, in developing their ideal state. Well, that wraps up this module where we address just what exactly a problem is and the three categories a problem can be placed in. Now, in later lectures, we will dive a bit deeper into the Domaic method and our treat one two three methodology, sharing some of the key details at each stage of the problem solving process. So until next time, keep on improving and we’ll keep on giving you solutions that ignite your power.

6. Gemba and Genchi Genbutsu

Okay, well, by the end of this Gemba overview, you will know exactly what and where the Gemba is. Next, we will share with you some important things to keep in mind when going to the Gemba with our own Gemba methodology. And finally, we will help you understand why understanding the Gemba can transform any organization. Well, let’s start things off by first defining what the term Gemba actually means. Formally defined, the Gemba can be described as the actual place where the work is being done. Given that definition, we know that there is more than one Gemba in almost every single organization. Here are a few examples to look at.

If you are a machinist, your Gemba would most likely be at the machine you are running. But if you work at a computer adjusting numbers and calculating data, your Gemba would probably be at your desk working on the computer. Finally, a surgeon’s gumba is most likely going to be in the surgery room where they perform their operations. Now, that leads us to a very important question. Where specifically is your Gamba at? We’ll go ahead and pause the video for a second and ponder this important question.

Where is your gamba? Now that you have figured out where the Gamba is, let’s discuss a little bit about why we should spend as much time as possible at the Gamba. The first and most obvious reason is that when we take ourselves away from meetings and conferences and go to the Gamba, we understand more about the facts and actual events that are taking place.

This helps us separate from opinion and judgment based decisions and gather the actual facts. The second reason why the Gymba is so valuable is oftentimes we forget in the heat of the moment, but the gimba is where value is created and where more than likely waste can be eliminated. Additionally, when you are there at the Gymba, you will almost certainly be able to close gaps and work towards reaching your standards.

Well, the last reason we would like to mention about the Gemba is if you’re a manager or a high level executive, being at the Gamba helps you maintain as close of an understanding as possible to issues that might pop up. And that means you can support the teams at the Gamba in finding solutions as quickly as possible. Remember, as a manager, one of the most important jobs that you can do is support the Gamba in accomplishing and meeting their goals and objectives.

Okay, well, you should have a better understanding of just why going to the Gamba is so powerful. So let’s switch gears for a moment and talk about a powerful methodology that we use when going to the Gamba to help us stay on track. The Gemba methodology defines a clear process for going to the Gemba and solving problems, discovering improvements, and gaining a better understanding of what is actually going on.

Well, to start things off, we begin with the term genchi genbutsu, which means go and see. This is where you want to go to the actual place where the work is done and watch the actual activity take place. Once you arrive at the Gamba, your next step will be to begin to engage and understand what is actually going on there. As an aside, remember that engaging means listening and observing as well as asking the appropriate questions. One of the best ways to move in on a root cause in the area is to form your questions using a five y analysis.

After asking questions and understanding, you will most certainly hear, observe or identify Muda, Mira and Miri. This is the ideal time to identify forms of waste and document them for future improvement initiatives. Finally, we take all the information gathered from the Gemba and analyze what can be done right away what needs to be turned into a project and ensure that there is consensus between all the parties at the Gamba. Well, let’s wrap up this Gemba overview with a reminder that being at the Gymba helps us stay connected with issues and ensure they are moving in the direction of solutions and improvements. Additionally, we learned that the Gamba puts decisions in warp speed by letting us observe actual events and facts.

And finally, when we are at the Gemba, we see where value and transformation happens, giving us the opportunity to eliminate different elements of waste and non value and also to address any issues of imbalance or deviations from standards, creating more efficient, effective and prosperous organizations. So until next time, keep on improving and we will keep on giving you solutions that ignite your power. Now, in later lectures on the Gemba, we will share with you some helpful ways to ensure that the Gemba discoveries make it from the Gemba to the actual improvement. Additionally, we will address a standard format for questions when at the Gamba that oftentimes assists in revealing process abnormalities.