Lean Six Sigma Consulting

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1 Lean Consulting A Joint Initiative between Lean International Board & Latitude 12 About Lean Lean and, together known as Lean, is a set of widely used Leadership and Management tools and techniques that have helped individuals and organisations across various industries around the world deliver significant improvements. Lean focuses on delivering business and customer value, both in the short term (quarter-on-quarter growth) and in the long term (year-on-year growth). This is achieved through a proven and structured process of strategy development and strategy deployment. Lean Lean is a structured methodology that focusses on reducing non-value adding activities that in turn reduces time to market, wastage, improves innovation, builds a culture of continuous improvement and most importantly delivers customer value. Lean is typically used to deliver quick returns for customers and organisations; hence organisations use it to drive quarter-onquarter growth. is a structured methodology that helps to understand the customer s definition of value, create an organisational strategy, deploy the strategy, ensure consistent delivery in performance to customers, and at the same time deliver organisational outcomes. The goal of is to reduce the defects within an organisation to near zero. Statisticians use the Greek letter sigma (σ) as the standard deviation of a population. Thus, sigma determines the variability within the objects that are being statistically analysed. is used to solve complex problems and achieve long term growth targets; hence organisations use it to develop leadership talent and also drive year-on-year growth. The training for Lean is provided through a belt based training system similar to that of. The belt personnel are designated as White Belts, Yellow Belts, Green Belts, Black Belts, Master Black Belts and Champions. The Benefits of Lean For Organisations Create growth strategies and deliver them Improve cash-flows, profitability and revenues Build sustained competitive edge Achieve customer satisfaction and loyalty Achieve world-class operations For Individuals Build Strategic Leadership Skills Clearly differentiate yourself among the many Get ready to lead organizations Faster career growth and thus better financial rewards than your peers 1 Business Solutions for Regional Australia

2 Lean Consulting A Joint Initiative between Lean International Board & Latitude 12 About Lean & International Board (LASSIB) Lean and International Board is an international society focussed on providing education, pioneering and spreading the knowledge of Lean Six Sigma to the worldwide community. It was formed after years of practical industry research and deliberations by like-minded industry leaders who believe in the value of Lean. The society has delivered 10,000+ certifications across 40+ countries, and hosts the Lean and International Conventions and Round Table Conferences. The society has coached and certified employees in organisations that read like a who s who of international business including: Microsoft Ernst & Young PwC GE ADP HSBC Hyatt Regency Deloitte HP About Latitude 12 Latitude 12 is a specialist managed business services provider, setting the benchmark for best practice in remote and regional Australia. With offices in Darwin and Brisbane, Latitude 12 is focussed on delivering high quality, cost effective, value adding solutions. Latitude 12 has an experienced team of professionals, committed to understanding and delivering on our clients needs. The trust we build with our clients is at the heart of everything we do. We measure our successes by the growth and success of our clients. We specialise in Financial Services and Payroll, Records Management and Archiving, Internal Audit and Risk Management, Workplace Health and Safety, Learning Management Systems, and Lean Training and Consultancy. Key Highlights 2 Business Solutions for Regional Australia

3 Lean Consulting A Joint Initiative between Lean International Board & Latitude 12 About our Lean Practice Latitude 12 and Lean and International Board (LASSIB) have a strategic partnership, to deliver business value using Lean, to customers in the regions of Australia, New Zealand and the Pacific Islands. Our practice is based on developing a thorough understanding of our client s goals, constraints and challenges. We do this by taking a thorough look at the key value drivers in your organisation and then tailor an approach using the Lean methodology that will deliver the business improvements and outcomes you are seeking. CLIENT Business Improvements & Outcomes Your Business Goals, Constraints & Challenges Your Project Team Business Solutions for Regional Australia We have a strong focus on developing a culture of excellence within the organisation, that helps sustain improvements and initiatives in the long run. This is achieved using the LASSIB Society s AEIOU Change Management Model and LASSIB Society s 4 Quadrant Culture Management Model. Key Value Delivered Business Solutions for Regional Australia Latitude 12 LASSIB Client Local, Remote and Regional presence throughout Australia Strong governance and relationship management On the ground project implementation and support Thought leadership that defines the industry Team of Master Black Belts that deliver expert outcomes for your organisation World class implementation approach Delivery of short-term goals and planning for the long term vision Reduction in costs, waste, and time, improvement in efficiencies and end user satisfaction Client A culture of excellence 3 Business Solutions for Regional Australia

4 Lean Consulting A Joint Initiative between Lean International Board & Latitude 12 4 Business Solutions for Regional Australia

5 Lean Consulting A Joint Initiative between Lean International Board & Latitude 12 Our Differentiators vs. Lean : Knowing when to use only Lean, or only or a combination of both, given the current requirements and constraints, is very crucial for the successful delivery of business outcomes. Thus Lean is preferred over just Statistics vs. Business Outcomes: Focusing only on statistical implementation without a focus on delivering business and/or customer outcomes can lead to unnecessary waste in the system. Thus Statistics and its allied techniques are treated and used as enablers, whereas the focus is on delivering Business Outcomes DMAIC vs. RDMAIC: DMAIC (Define Measure Analyse Improve Control) is the typical methodology used to drive improvements. However driving improvements using DMAIC without an alignment to the Business Strategy results in a waste of resources, effort, time and money. The Recognize Phase i.e. the R in RDMAIC focusses on creating a strategy and identifying initiatives that add the most business and/or customer value Qualitative vs. Quantitative Outcomes: While delivering qualitative outcomes such as employee satisfaction are important, delivering quantitative outcomes such as $ benefits (Return on Investment ROI), productivity improvement, etc. create a culture of excellence that is measurable. Quantitative outcomes also ensures an appreciation across a broad set of stakeholders on the investments to be made Standard vs. Proprietary Toolset: While standard toolsets such as 5S, COPIS, QFD etc. are important for delivering outcomes, LASSIB s proprietary toolsets such as VSMe, QADE model help enable delivery of strategic value Generic Capability Building vs. a Scientific Approach: Typical capability building is measured qualitatively using training feedback forms and manager s feedback. However, most of the time, there is no scientific approach to measuring capability building. LASSIB has built specific assessment engines that measure capabilities across a range of competencies, using artificial intelligence programs at the back end. These assessment engines measure both functional and behavioural competencies and measure the improvement of capabilities over time, also using advanced statistical techniques such as Hypothesis Tests Focus on Creating Leaders of Tomorrow: While most training and intervention programs focus on providing functional knowledge, LASSIB also focusses on creating leaders based on its QADE model that helps impact: Questioning Skills Analysis Skills Decision Making Skills Execution Skills Focus on Culture Building: LASSIB with its 4 Quadrant Culture Management Model focusses on creating a Culture of Excellence, that ensures sustenance of the initiative into the longer-term Focus on Change Management: While undertaking any improvement i.e. change initiative, it is critical to plan for the change and the impact it would have on human resources. LASSIB Society s AEIOU Change Management Model helps assess the Change Readiness and drive the change within an organization successfully 5 Business Solutions for Regional Australia

6 Lean Consulting A Joint Initiative between Lean International Board & Latitude 12 Our Industry Verticals Examples of Lean Improvements by Industry Government & Local Government Reduction in database entry cycle time in inventory management by 60%. Savings of over 80% improvement in cycle time for small to mid scale contracting actions Significant savings annually in rework avoidance requiring unplanned labour and overtime, increasing quality outputs and customer service Streamlining social services application workflow Backlog of child support enforcement cases dropped from 7,281 to 103 in less than a year Defence Recruitment process brought down to 11 steps from previous number of 32 A one-stop equipment and clothing outlet for base soldiers reduced issue and turn-in times by 50% and its inventory by more than 65%. Installation officials expect 20% cost savings. 256 days repair time for an engine used in an aircraft, down to an average of 70. Tripled production. Arranging a battle rostered unit time reduced by 30 days to 3 days Oil & Gas 26% increase in Hexane production Improvement in the reliability of hydraulic pumps by 34% Reduced turnaround time of tank filling by 18% Information Technology Speed of requirements finalisation increased by 34% Increase in ROI delivered to the client to USD 2,072,000/- per quarter 48% reduction in errors caused during order processing for clients Other Industries Net profit margin increase by 1.2% - 4.5% after management believed savings were already being maximised Reduced the cycle time for refunds from 25 Business days to 10 Business days using transactional Lean concepts and tools Reduced the cycle time for application of cash from an average of 5 days to 3 days using transactional Lean concepts. This also helped in reduction of unapplied cash by 75% 6 Business Solutions for Regional Australia

7 Lean Consulting Our Achievements - Example Case Studies A Joint Initiative between Lean International Board & Latitude 12 A selection of the achievements we have delivered and how we got there. Even more impressive results have been attained for some organisations, however for confidentiality reasons these could not be outlined Oil & gas industry Client Goals and Problems Frequent fluctuation in Low Residue (LR) line 61 times in 6 months duration Interventions and Changes Made Poka Yoke applied Pressure variation in LR line needed no manual intervention Client Outcomes Pressure surge during the improvement phase: Zero Cost benefit of close to $1.3 million Every fluctuation costs $10,000 Every fluctuation had 2 hrs of down time Required frequent manual intervention Response time of discharge valve recalibrated Communication between two plants made effective Shop floor operators were interested to learn about various improvement tools and started with Kaizen events. Problem since 1993 IT Services Client Goals and Problems Low net profit margin compared to industry High Days Sales Outstanding Increased Customer Complaints around Project Management Increased Customer Dissatisfaction around lack of Innovation Increased Competition in the Industry Interventions and Changes Made Revised Roles and Responsibilities Change and Culture Management Implemented Project Management Academy created using Design for Six Sigma Principles Support and Watch Sessions to ensure Application of New Way of Working Client Outcomes U.S. $24 million in Gross Margin Improvement in one Year U.S. $8 million worth Cash Flow Improvements in one Year U.S. $56 million worth Revenue Growth in one Year U.S. $4 million worth Innovations delivered to Customers Pharmaceuticals Client Goals and Problems Low Profit Margins among specific divisions Interventions and Changes Made Identification of Organization Fat Organization Restructuring incl: Promotion Process Recruitment Process Resource Utilization Process Definition of Relevant Metrics Client Outcomes U.S. $ 5 million projected savings in two years Streamlined Processes Increased Business Alignment of HR Systems Dashboard Design 7 Business Solutions for Regional Australia

8 Lean Consulting A Joint Initiative between Lean International Board & Latitude 12 Our Capabilities Lean Certification Levels Hierarchy We can help grow your organisational capacity through our structured training programs and formal Lean certification program. CXOs Level II Management Level III Management To be Managers Associates Champions Master Black Belts Black Belts, Green Belts Green Belts, Yellow Belts Yellow Belts, White Belt Contact Us To find out more information or arrange for a personal consultation, phone Latitude 12 and ask for the Lean Team on (08) Business Solutions for Regional Australia