New Book Part 5

In my last post, I discussed the basics of how best to combine Lean (L), Six Sigma (SS) and TOC to achieve breakthrough profits and return on investment (ROI).  I laid out what this ultimate improvement cycle looks like as three concentric circles which combine Lean, Six Sigma and TOC. In this post we will continue this discussion by presenting some of the tools and actions needed to make this integrated methodology successful.  This material is from my newest book, The Focus and Leverage Improvement Book.

In the figure below, I have laid out the improvement tools, actions and focus for our improvement initiative. These are the tools to use, and the actions you will use, at each step of the UIC. As you can see, there are no new or exotic tools being introduced. Instead, in creating the UIC, one of my objectives was to keep things simple. Please keep in mind that there are other tools available that can be used to drive this improvement engine. My point here was to list some of the more common ones.

In Step 1a, I recommend using either a Value Stream Map (VSM) or a Current State Process Map to identify your value stream, plus your current and next constraint. I also recommend selecting performance metrics that are based upon Throughput Accounting, plus an analysis of your current inventory. In addition, I recommend using TOC Thinking Process (TP) tools as well as a Gemba Walk. 

In Step 1b, we are performing a Value Stream Analysis (VSA) to determine both locations of waste and excess inventory. My recommendation in this step is to use a Current Reality Tree (to be explained in a later chapter) to identify areas of concern and to identify Undesirable Effects (UDEs) that will impede your performance efforts. In Step 1c, I recommend performing capability studies and implementing Control Charts where necessary. I also recommend performing a Pareto analysis, and then using tools like a Cause and Effect Diagram to perform a causal analysis. Causal Chains and Why-Why Diagrams are highly effective in this step, as we work to identify cause and effect relationships.

In Step 2a, we will now develop our plan on how best to exploit our current constraint. Some of the tools we will use in Step 2b are organizing the current constraint using 5S (Sort, Set in order, Shine, Standardize, Sustain), standardized work and visual aids. If necessary, in Step 2c, sometimes we will perform a Design of Experiment (DOE), and/or create Causal Chains to identify cause and effect relationships. Sometimes it is necessary to create Conflict Diagrams to identify conflicts.

In my next post, I will continue discussing this integrated method by presenting other necessary tools and actions required to improve your current system.

Bob Sproull