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Lean Six Sigma Q&A - GoLeanSixSigma.com

How can I apply Lean Six Sigma in the accounting department of a construction company?

There are so many ways to apply Lean Six Sigma here. First, what processes are painful for customers, and/or employees? What processes have long cycle times or high defect rates? These are good opportunities to apply Lean Six Sigma tools. We have had many projects from a financial or accounting background. Reducing lead time on Accounts Payable.…
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Lean Six Sigma Q&A - GoLeanSixSigma.com

How can I apply Lean Six Sigma at a hotel?

The Hospitality industry has made great strides in the past decade with Lean Six Sigma. Some of the best projects have centered around reducing workplace injuries by focusing on cleaning and maintenance processes. Another big win that came out of Lean Six Sigma is the “Green Program.” The Green Program is when hotels let guests…
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Lean Six Sigma Q&A - GoLeanSixSigma.com

How do I identify new work groups (departments) who want to implement Lean levers in their process?

There are two main ways to identify groups or departments who want to implement Lean.  In keeping with the Lean philosophy, let’s call them “Push” and “Pull”! Push:  Often, an organization or division will decide to proceed with Lean due to some “burning platform” of need to change, potentially as senior leaders look to improve…
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Lean Six Sigma Q&A - GoLeanSixSigma.com

What Is An Example Of Special Cause?

Walter Shewhart, who developed Control Charts at Bell Labs in the 1920s, used those charts to distinguish between 2 types of variation. He saw that all processes showed signs of Common Cause variation, but processes that were not in control also exhibited Special Cause variation. If you think about why you’re maybe a few minutes…
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Lean Six Sigma Q&A - GoLeanSixSigma.com

Is a customer also a stakeholder?

We differentiate customers from stakeholders in Lean Six Sigma because customers are the focus of projects. Stakeholders are important to the project because we need their engagement in order to ensure lasting change. For customers we develop specific efforts to understand “voice of the customer” and how to measure their requirements. Their requirements are the…
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Lean Six Sigma Q&A - GoLeanSixSigma.com

How do you convert eliminated Waste into dollar values that show how they affect the bottom line to convey the benefits of Lean Six Sigma to the CFO/CEO?

Full Question: In an IT company, the labor hours saved are not always easy to convert in to dollar values – Finance is not able to see those dollar values unless you convert those hours saved into billable hours. If these hours aren’t converted, then the hours saved by eliminating waste is not a direct bottom…
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Lean Six Sigma Q&A - GoLeanSixSigma.com

If we were to eliminate Wastes in any form, how would we be able to convert the waste into dollar value in order to convince a Bank to start adopting Lean?

The calculation you’re looking for is COPQ or Cost of Poor Quality. The idea is to calculate the labor hours saved by removing waste and then multiply them by the average loaded salary of the process participants impacted. In the case where Defects cause the process to “scrap” products, you can calculate the lost value…
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Lean Six Sigma Q&A - GoLeanSixSigma.com

In Six Sigma, Y = f(X), what does X stands for?

This formula is especially relevant to determining cause and effect as well as measuring for improvement. It reads Y is a function of X. The Y is the effect of the problem or desired improvement and the X's are the possible causes or areas affecting improvement. For example, Y= total…

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Lean Six Sigma Q&A - GoLeanSixSigma.com

What Wastes could exist in a Shipping Department?

All sorts of Wastes could exist in a Shipping Department. Here are a few examples: Unnecessary transportation of products Unnecessary motion of people Unnecessary waiting (waiting to pack and/or ship, or customers waiting) Unnecessary inventory (any excess inventory creates LOTS of waste: counting it, moving it, organizing it, damaging it (causing defects). Unnecessary inventory means…
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Lean Six Sigma Q&A - GoLeanSixSigma.com

Can Lean Six Sigma be applied in the software industry?

Can Lean Six Sigma be applied in the software industry? What are the wastes? There’s waste in every industry, including the software industry. Depending on the department the waste would take different forms. Defects could either be bugs in the actual software, not developing the features requested by the customer, or shipping the wrong products…
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