The 5 Day Lean Six Sigma Green Belt: A Practical Approach to Understanding and Utilizing Lean Six Sigma

By Michael Bayer

In this comprehensive and action-oriented guide, "The 5 Day Lean Six Sigma Green Belt," you'll embark on a transformative journey to acquire essential Lean Six Sigma skills in an incredibly short span. Authored by a highly experienced Master Black Belt with a proven track record of successful
implementations, this book is tailored for professionals seeking to accelerate their careers and drive operational excellence.

Throughout the book, you'll be immersed in practical, real-world scenarios, where theoretical concepts are seamlessly integrated into hands-on applications. The expert author takes a unique approach by condensing the learning process to its most essential elements, ensuring rapid comprehension without sacrificing depth.

• Language: English
• Publisher: Michael Bayer
• Release date: Aug 12, 2023
• ISBN: 9798223889380

Book preview

The 5 Day Lean Six Sigma Green Belt

A Practical Approach to Understanding and Utilizing Lean Six Sigma

Michael Bayer

Copyright © 2023 by Michael Bayer

All rights reserved.

No portion of this book may be reproduced in any form without written permission from the publisher or author, except as permitted by U.S. copyright law.

Contents

1.Author's Note

2.Getting Started

3.Lean Overview

4.Six Sigma Overview

5.Introduction to Lean

5. Module 1

6.The Eight Wastes

6. Module 2

7.Lean and Value

7. Module 3

8.Understanding Flow

8. Module 4

9.Understanding Pull

9. Module 5

10.Lean Six Sigma Overview

10. Module 6

11.Common Lean Six Sigma Myths

11. Module 7

12.Lean Six Sigma Structure

12. Module 8

13.A3 Thinking

13. Module 9

14.Understanding DMAIC

14. Module 10

15.Define Phase

15. Module 11

16.Measure Phase

16. Module 12

17.Analyze Phase

17. Module 13

18.Improve Phase

18. Module 14

19.Control Phase

19. Module 15

20.Management of Change

20. Module 16

21.Summary

Chapter one

Author's Note

This book is the culmination of many years of experience in training Lean Six Sigma practitioners and refining the material to provide the most actionable and comprehensive guidance. Drawing from real-world examples, hands-on exercises, and proven methodologies, it has been crafted to offer an in-depth understanding of Lean Six Sigma principles. It's essential to note that this is not a cursory overview; the book is designed to provide a robust education and should be approached with commitment. You should expect approximately 40 hours required to thoroughly work through the material and fully grasp the concepts. This investment of time is a pathway to mastering the practices that can lead to organizational excellence and personal growth in the field of Lean Six Sigma.

Green Belt students in Lean Six Sigma are expected to have a basic or better understanding of statistics, and this requirement is rooted in the core principles of the methodology itself. Statistics provide the tools to analyze and interpret data, helping to identify variations, trends, and root causes within processes. By understanding statistical concepts, Green Belt practitioners can accurately measure current performance, identify areas for improvement, and monitor the impact of changes. Whether it's using control charts to maintain process stability or employing hypothesis testing to validate improvements, statistical knowledge enables a more rigorous, data-driven approach to problem-solving. This alignment with the evidence-based decision-making inherent in Lean Six Sigma makes a basic understanding of statistics not just beneficial but essential for Green Belt students, ensuring that they can effectively contribute to continuous improvement initiatives within their organizations.

This book provides insight into basic statistical concepts that are integral to Lean Six Sigma, serving as a valuable resource for understanding the role of statistics in continuous improvement. However, it must be noted that the material may be more challenging for those who do not have the foundational statistical concepts already mastered. A solid grasp of basic statistics will enable a more nuanced understanding of the techniques and tools presented, enhancing the ability to apply them effectively in real-world situations. For learners who may find themselves struggling with the statistical components, supplemental resources or courses that focus specifically on statistical fundamentals might be advisable.

Chapter two

Getting Started

In an era where efficiency and continuous improvement are not mere preferences but vital business imperatives, the Lean Six Sigma methodology stands as a beacon, guiding organizations towards operational excellence. The principles of Lean Six Sigma blend the waste-reducing focus of Lean with the defect-minimizing strategies of Six Sigma. Together, they form a powerful framework for enhancing quality, reducing costs, and improving customer satisfaction.

However, despite its importance and widespread application, a significant gap exists in the current educational landscape surrounding Lean Six Sigma. Many existing texts, though valuable in their own right, fail to bridge the gap between theory and practice, offering concepts that often seem detached from real-world application. This lack of effective training resources leaves many practitioners stranded, holding a toolkit they barely know how to wield.

It is with the intention to close this critical gap that I present this book to you. With decades of hands-on experience in implementing and teaching Lean Six Sigma across various industries, I have seen both its power and the pitfalls that await the ill-prepared. I have encountered the frustrations of those who try to learn from books that are either too theoretical, too superficial, or too complex for practical application. This book is different.

Designed as a comprehensive training guide, this book takes a pragmatic approach, providing clear, step-by-step instructions, real-world examples, and practical insights. It aims to equip the reader with the essential knowledge and hands-on skills necessary to implement Lean Six Sigma successfully in their own organization.

But this book is not just for beginners. Seasoned Lean Six Sigma practitioners will also find value in the advanced concepts, novel perspectives, and innovative approaches that have been distilled from my many years of working in the trenches of process improvement.

I believe that Lean Six Sigma is not merely a set of tools but a philosophy, a way of thinking that goes beyond mere efficiency. It's about creating value, delighting customers, engaging employees, and fostering a culture of continuous learning and improvement.

I invite you to join me on this journey. Whether you are new to Lean Six Sigma or looking to deepen your existing knowledge, this book is intended to be your guide, your mentor, and your companion in your quest for operational excellence.

Welcome to a world where waste is banished, quality reigns, and the pursuit of perfection never ends. Welcome to the world of Lean Six Sigma.

Chapter three

Lean Overview

Ihave had the privilege of consulting with some of the Nation’s most prominent corporations as well as highly competitive mid-market companies. Despite the vast differences in their culture and the workers they attract, Lean and Lean Six Sigma questions are always the same. But, unfortunately, the little information they have is gleaned from a Google search or one of the many For Dummies books that have taken over every self-improvement section of our bookstores.

Don’t get me wrong; I respect clients and business partners that have taken the time to learn more about the journey they are about to undertake. I have, however, experienced firsthand the fallout and chaos created by them getting a glimpse behind the Lean Six Sigma curtain through one of the aforementioned books. While eloquent in its tools and approach, the Lean Management System still requires a highly tactical delivery and specific skills you will learn from this guide. Unfortunately, many of the books available don’t provide the level of detail necessary for an individual to be ready to speak intelligently, let alone practice Lean Six Sigma. To me, that is akin to grabbing a hammer and trying to build a house after reading a book on it. Without an expert there to provide mentorship and guidance, I would be doomed to fail.

Further, reading about building a house does not offer me the contextual information required to explain the process; you learn the how and not the why. This is the gap in all the Lean Six Sigma training books I have read in my 17 years of consulting. This book will close that gap and provide you with the academic and practical examples needed to master the Green Belt curriculum. In addition, the books fail to answer the most common and most straightforward of questions: What is Lean?

I have found it best first to explain what Lean is not. A common fallacy is that Lean is a methodology or a set of tools to drive organizational efficiency. Unfortunately, many organizations that failed to achieve their Lean goals held the same beliefs. According to a survey by Bain and Company in 2008, out of 184 companies questioned, 80% reported their Lean efforts were not delivering the expected results. Interestingly, 74% of those reporting less than excellent results reported not hitting their savings targets because of their discontent. Thus, it is critical to understand your or your organization’s rationale for a Lean Management System. If cost savings is the driver, it will more than likely fail.

One of the most important tasks you will have as a Lean Six Sigma practitioner is managing expectations and coaching leaders to effectively lead a Lean Six Sigma transformation. Embrace this responsibility, and you will be instrumental in driving a sustainable cultural change at your organization.

Lean is, at its core, an ongoing structured method of identifying non-value-add activities, which results in process waste, bloated lead times, and high operational costs. Furthermore, the practice of Lean leads to a cultural shift towards high performance, employee engagement and empowerment, rapid problem solving, a breakdown of silos, and reducing the human struggle within your organization. When you put it all together, you have a paradigm shift that focuses on continuous improvement, maximizing value-added activities, removing waste, and monitoring process performance in real-time. In other words, you have a Lean organization.

Chapter four

Six Sigma Overview

Lean is the requisite foundation of the successful use of Six Sigma. During the days of Jack Welch, General Electric was all the buzz in quality circles. As a result, Six Sigma was considered the de facto standard for quality management and continuous improvement. However, as markets and consumer demands became more dynamic, the long lead times of Six Sigma solutions became less tolerable. Lean is designed for rapid and responsive organizational change, while Six Sigma requires a more thoughtful approach through extensive data analysis and design activities. The easiest way to view the difference between the two is that Lean is a total management approach to work through waste removal. At the same time, Six Sigma is a toolkit designed to remove variation and drive data-driven decision-making. Lean is vital in improving process velocity and changing mindsets and behaviors; Six Sigma excels at solving complex organizational problems and strong metric development. The synergy of the two creates a robust management system with the tools to drive sustainable organizational efficiency and continuous improvement and the ability to measure and monitor performance.

Chapter five

Introduction to Lean

The Origins of Lean

The origins of Lean manufacturing can be traced back to several key influences that shaped its principles and practices. In the early 20th century, Henry Ford's assembly line approach laid groundwork by focusing on specialized labor and the efficient use of space, significantly reducing waste in production. However, the real birthplace of Lean as we know it today is in post-war Japan, particularly within the Toyota Production System (TPS). Facing scarce resources and a need for high efficiency, Toyota's engineers, led by Taiichi Ohno, developed a system that emphasized just-in-time production, continuous improvement (kaizen), and the elimination of waste (muda) throughout the entire value stream. TPS synthesized earlier Western practices with innovative new approaches, giving rise to a philosophy that has since become central to modern manufacturing and service industries worldwide. The term Lean itself was coined in the 1980s by researchers studying Toyota's success, encapsulating a set of practices that have had a profound impact on the way organizations operate.

Birth of Lean in Japan

The birth of Lean in Japan was a direct response to specific economic challenges in the post-World War II era. Japan's limited natural resources, space constraints, and the need to rebuild a war-torn economy created a pressing demand for efficient and flexible manufacturing processes. Traditional mass production methods used in the West were unsuitable for Japan's conditions, leading to the quest for innovative approaches to manufacturing that would eventually form the basis of Lean.

The centerpiece of Lean's development in Japan was the Toyota Production System, conceptualized and implemented by Taiichi Ohno and other Toyota engineers in the 1950s and 1960s. TPS introduced key principles like just-in-time production, where materials were delivered precisely when needed, eliminating excess inventory and waste. The continuous pursuit of improvement, or kaizen, became a cultural imperative, fostering collaboration and innovation at all levels of the organization.

While TPS was a distinctly Japanese innovation, it did not emerge in isolation. Toyota's engineers studied and adapted Western manufacturing practices, including Henry Ford's assembly line and statistical quality control. They synthesized these practices with their unique insights, tailoring them to fit Japan's specific needs and constraints. The result was a groundbreaking system that optimized the entire production process, from supplier relationships to final product delivery, making it responsive to customer demands and minimizing waste.

The success of TPS quickly caught the attention of manufacturers and researchers worldwide. As Toyota's efficiency and quality became industry benchmarks, companies began to study and emulate their practices. The term Lean was coined in the 1980s to describe this approach to manufacturing, emphasizing the elimination of waste and the pursuit of perfection. The principles and practices born in Japan's unique post-war environment have since spread across industries and around the globe, shaping the way modern organizations think about production, efficiency, quality, and continuous improvement. The birth of Lean in Japan is thus a testament to innovation, adaptation, and the enduring impact of a well-conceived philosophy.

Western Adoption of Lean

The adoption of Lean principles in the United States began with a keen interest in Japan's manufacturing success, particularly in the automotive industry. American manufacturers and scholars, facing stiff competition from Japan, sought to understand the underlying principles that made Japanese manufacturing so efficient. This led to studies like the Massachusetts Institute of Technology's International Motor Vehicle Program in the 1980s. Researchers like John Krafcik, James Womack, Daniel Jones, and others played a pivotal role in translating and adapting the concepts of the Toyota Production System for a Western context. Their work culminated in the publication of The Machine That Changed the World in 1990, which not only introduced the term Lean but also demonstrated how these principles could be applied in various industries across the United States. The Lean approach quickly gained traction and was adopted by numerous companies seeking to reduce waste, increase efficiency, and focus on delivering value to customers. It transformed not only manufacturing but extended to sectors like healthcare, construction, and software development.

As you can see, the origins of Lean can be traced through various stages of industrial development, from medieval Venice to modern Japan, with a diverse array of influences from different time periods and regions. It is an evolving methodology that has continuously adapted to various fields beyond manufacturing.

The philosophy of eliminating waste and optimizing for customer value has proven to be a universal concept, and the historical journey of Lean offers a rich tapestry of insights into efficiency and optimization. Understanding the origins of Lean is more than an academic exercise; it provides practical insights for contemporary business leaders seeking to enhance productivity, quality, and responsiveness in an ever-competitive global marketplace.

Lean for Transactional Processes

Lean principles, initially developed within the context of manufacturing, have expanded into transactional and service-oriented businesses. The evolution of Lean outside manufacturing unfolded through several stages.

Lean's core principle of waste reduction is not exclusive to physical production. Waste, in the form of unnecessary steps, delays, errors, and other inefficiencies, is present in transactional processes as well. Business leaders began to recognize that the Lean approach to identifying and eliminating waste could be adapted to non-manufacturing contexts, providing similar benefits in efficiency and quality.

Lean tools such as value stream mapping, continuous improvement (kaizen), and root cause analysis were initially designed for manufacturing processes. However, these tools were found to be equally applicable to transactional processes like order processing, customer service, and supply chain management. By mapping the flow of information, identifying bottlenecks, and focusing on customer value, businesses could streamline transactional processes using Lean methodologies.

Lean’s emphasis on customer value translates seamlessly into transactional environments. By understanding what the customer truly values and focusing on delivering it in the most efficient manner, transactional businesses began to apply Lean principles to improve customer satisfaction, reduce lead times, and enhance service quality.

The rise of methodologies like Six Sigma, which emphasizes statistical analysis and quality control, further facilitated Lean's migration into transactional businesses. Lean Six Sigma, a hybrid approach, became a popular framework for improving both efficiency and quality in diverse sectors, including finance, healthcare, and information technology.

Beyond tools and techniques, the cultural aspects of Lean – such as employee empowerment, teamwork, and a relentless focus on continuous improvement – resonated with transactional businesses. By creating a culture where every employee is engaged in identifying and eliminating waste, businesses found that Lean principles could drive transformation across all areas of the organization, not just the factory floor.

In summary, Lean's transition from manufacturing to transactional businesses was driven by a recognition of the universality of its core principles, the adaptability of its tools and techniques, and its alignment with broader organizational goals. Lean's focus on efficiency, quality, customer value, and continuous improvement has proven to be a versatile and powerful approach, capable of delivering substantial benefits across diverse industries and functions.

Chapter six

The Eight Wastes

Lean thinking's foundation is built upon identifying and eliminating waste, thereby streamlining processes, and maximizing value. To truly embody Lean principles, one must recognize the eight distinct types of waste, often referred to by the acronym DOWNTIME: Defects, Overproduction, Waiting, Non-Utilized Talent, Transportation, Inventory, Motion, and Extra Processing. In this chapter, we will dive deep into each of these wastes, understanding why they are essential, Tips for identifying them, and providing real-world examples to illustrate their impact.

Defects

In Lean philosophy, defects waste refers to any aspect of a process that results in the production of goods or services that do not meet the customer's requirements or expectations. This waste is commonly known as Muda in Japanese, one of the three primary categories of waste identified in Lean thinking. Defects waste not only leads to dissatisfied customers but also entails additional costs, time, and resources to rectify the errors. By focusing on eliminating defects waste, organizations can improve product quality, customer satisfaction, and overall operational efficiency. Lean practitioners diligently work towards identifying the root causes of defects, implementing corrective actions, and instituting preventive measures to create a culture of continuous improvement and defect-free processes. This relentless pursuit of perfection ensures that organizations produce and deliver high-quality products and services while reducing the risk of customer complaints, returns, or rework.

Defects are costly. They lead to rework, returns, and loss of customer trust. By identifying and addressing the root causes of defects, an organization can reduce costs, enhance quality, and improve customer satisfaction.

Tips for identification

Look for inconsistencies in product quality, high return rates, customer complaints, and time spent fixing errors. Process mapping and root cause analysis tools like the Five Whys can be valuable in tracing defects to their origin.

Example

The waste of defects is not limited to manufacturing processes; it can also have a significant impact on transactional processes. Let's consider an example in the context of a customer support center for an online retail company. In this scenario, a defect occurs when customer support representatives frequently provide inaccurate information to customers regarding product availability, shipping times, or return policies. As a result, customers receive conflicting information, leading to confusion, frustration, and a decrease in customer satisfaction. The defects waste manifests in increased call volumes as customers seek clarification, elevated handling time per call due to repetitive inquiries, and a rise in customer complaints and negative online reviews. The company's resources are strained as they must allocate additional time and effort to rectify these errors and address customer grievances. To mitigate the waste of defects, the company must invest in comprehensive training for customer support representatives, implement better communication and knowledge-sharing systems, and conduct regular quality checks to ensure accurate and consistent information delivery. By doing so, the company can minimize defects in its transactional process, enhance customer experience, and build a loyal customer base.

Overproduction

In both manufacturing and transactional processes, the waste of overproduction can have detrimental effects on efficiency and resource utilization.

In manufacturing, overproduction refers to producing more physical goods than are needed at a given time. This not only ties up financial resources in unnecessary inventory but also leads to increased storage costs and potential spoilage or obsolescence of goods. The need to manage excess inventory can mask underlying inefficiencies and quality problems in the production process, as goods are produced faster than they are consumed.

In transactional processes, overproduction can manifest in the form of excessive paperwork, reports, or other information outputs. Just as with physical goods, producing more information than is needed can lead to confusion, redundant efforts, and additional costs for storage and management. Overproducing information can create a cluttered environment where essential data is lost or overlooked, slowing down decision-making processes and leading to potential errors.

In both contexts, overproduction represents a failure to align output closely with real demand, leading to inefficiencies and unnecessary costs. By focusing on producing only what is needed when it is needed, both manufacturing and transactional processes can be streamlined, reducing waste and enhancing responsiveness to actual customer needs. Whether dealing with physical goods or information, the principles that govern the waste of overproduction remain consistent, and the elimination of this waste is a key objective in Lean methodologies.

Tips for identification

Look for large stockpiles of finished goods, production that exceeds sales, and incentives that encourage producing more than needed.

Example

Let's consider an example in the context of a financial institution processing loan applications. Due to a lack of effective demand forecasting and process optimization, the institution produces loan application documents in large quantities well in advance, even before the actual customer demand arises. As a result, a considerable amount of paperwork and electronic files are generated and stored, leading to excessive administrative work and wasted resources. Moreover, overproducing loan application documents can lead to errors or outdated information in the paperwork, requiring additional time and