An Introduction to Lean Six Sigma and the USPS. Lean Its just the way we do business
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1 An Introduction to Lean Six Sigma and the USPS 1
2 Topics in this Session: 1. Brief history of Lean Six Sigma 2. What is Lean, Six Sigma, and Lean Six Sigma? 3. Introduction to Lean Six Sigma Methodologies 4. USPS and Lean Six Sigma Today 2
3 The Evolution of Lean and Six Sigma into Lean Six Sigma (LSS) 3
4 WHATis Lean? Lean is primarily a way to run the business more efficiently using industry proven methods It focuses on improving process flow by identifying and eliminating 7 types of waste Its goal is to meet the mailing needs of the customer while improving the ease of performing work for employees 4
5 Lean What it Focuses on Maximizing the value delivered to customers Optimizing the flow of products and services The use of visual methods to aid all employees in achieving USPS business requirements and daily performance Performance 5
6 Howcan lean help the USPS? (cont.) By Reducing the 7 Types of Waste Lean Will: 1. Transportation 2. Inventory 3. Motion 4. Waiting 5. Overproduction 6. Over Processing 7. Defects Improve efficiencies by reducing unnecessary work (non-value added activities) Reduce process throughput times to improve the delivery performance of mail to our customers 6
7 WHATis value? An activity that provides what the customer wants and is willing to pay for The actual processing of mail or information into the final product or service desired by the customer Total Effort Waste is not value in the eyes of the customer or the business When #2 is done right the first time No defects and no rework 7
8 WHATdo USPS customers want? They want what they are paying us to do On time mail delivery Accurate mail delivery Low Cost These are the requirements for the USPS to be Successful Lean and Six Sigma Help Us to Achieve These Requirements Visibility 8
9 WHATis Six Sigma? Six Sigma is primarily a problem solving methodology that uses data to solve systemic problems that prevent us from meeting customer and business expectations Systemic problems are problems that have existed for an extended time, have unknown causes, unknown solutions and are not easily solved with traditional methods 9
10 Six Sigma - Its Primary Focus Reducing variation or unpredictability in our processes Reduced variation makes processes more capable of achieving customer and business requirements Reducing defects and rework Reduced defects and rework eliminates waste in our processes Making decisions through the use of data versus intuition Making informed decisions based on data helps us to run the business better to meet customer requirements 10
11 WHATis Lean Six Sigma? Definition: A fact-based, data driven Methodology For making informed decisions Through process and data exploration To reduce waste and improve the capability of our mail and business processes So the USPS can be a competitive business in the eyes of our customers LEAN SIX SIGMA The Best of Both 11
12 WHYwould you use Lean Six Sigma? LEAN Maximizing the value delivered to customers SIX SIGMA Reducing variation or unpredictability in our processes Improve the working conditions through organized and clean environments that foster excellence Reduce process throughput times to improve the delivery performance of mail to our customers Reducing defects and rework Making decisions through the use of data versus intuition On time mail delivery + Low Cost + Accurate mail delivery + Visibililty 12
13 PRINCIPLES to Lean Six Sigma Focus on the customer Involve the people in the process Identify and understand how work gets done Manage by fact and makes informed decisions Undertakes improvement activity in a systematic and understood way 13
14 Lean Six Sigma Roles 14
15 DMAIC Process Roadmap 15
16 What is a Kaizen Event? A concentrated, very focused and high energy event to improve a process in typically 1 week. Led by a knowledgeable Kaizen Facilitator who is at minimum GB Trained Has a fully dedicated team including employees from the process being improved Uses tools from both the Lean and Six Sigma tool kits Results Generates incremental improvement quickly to a poorly performing process using a team effort to make rapid changes. Is documented through a storyboard and Kaizen Newspaper without the need for formal tollgating 16
17 What is a Just Do It? Generally a very localized and uncomplicated problem where the solution is already known. May require a task team who coordinates the implementation over several days to several weeks Does not require any formal documentation or project activity to achieve results Because the solution is known, it does not require the usual LSS problem solving tools but still uses LSS thinking to develop a sustainable solution 17
18 The Formula for USPS Business Success 18
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