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 Lean Six Sigma Update July 2008 

     Whistle While You Work
Liebert Corp. visits a factory floor to teach Lean tools    

Yellow Belts in-training break out of the classroom to observe live processes on the factory floor.  During their orientation at the headquarters in Worthington, OH, Liebert new hires complete a Lean Yellow Belt curriculum and tour the nearby American Whistle factory.  Business owner, Ray Giesse, leads the tour and offers insights into how the company has grown from producing about 70,000 whistles to about 1 million annually.  This increase in production has occurred commensurate with a reduction in shifts and staffing levels.

The Liebert trainees return to the classroom to discuss the improvement methods used by Giesse.They also draw upon their observations of the factory floor to ... Click Here to read the whole article.

     Applying Lean Six Sigma to Lean Six Sigma Training, Part 1
Blended model offers a minimum cost advantage of 50%, not including student travel costs    

It is incumbent on us to apply the tools that we teach to the methods we use to teach the tools --- to practice what we preach.  Consistent with the Lean Six Sigma methodology, we approach this objective from the customer's perspective.  Customers of training have three primary drivers to make training better:  (1) make training more effective, (2) make training less expensive, and (3) make the delivery of training more flexible and responsive.  The design of an improved training model must address the critical requirements embodied by these three categories of need.  In our experience, blended training models most thoroughly satisfy the range of customer requirements.  We define blended training as a training model designed to comprehensively integrate multiple delivery modes and learning activities for a given curriculum --- generally including a mix of e-learning, classroom exercises, and coaching.

Voice of the Customer
As a first step toward re-designing the training model, customer requirements are examined using the tree diagram below.  Note that each driver category has been expanded into a group of more specific requirements.  The first six requirements under "effectiveness" represent increasing levels of mastery as embodied by Bloom's taxonomy. 

Other requirements represent various dimensions of cost, as well as key determinants of flexibility or responsiveness.

Benefits Analysis
By minimizing expensive face-to-face instruction and travel, as well as elimination of the direct costs of printing and shipping training materials, the blended model offers a minimum cost advantage of 50% (not including student travel costs).  The differential of these direct costs is easy to measure.  Other benefits which are harder to quantify, but present, include: reduction of administrative overhead for scheduling classes, and the benefit of on-demand e-learning reference resources.  There is complete certainty that the blended model has a far lower cost structure.  There is also complete certainty that blended models are more flexible - the e-learning component features a lot size of one, so participants can start at any time with no lead time.  So the remaining question centers on effectiveness.  Fortunately, an emerging body of evidence indicates that blended learning is substantially more effective than classroom training alone.  In 2006, the Advanced Distributed Learning Initiative (http://www.adlnet.gov/ ), which is funded by the DOD, conducted a Meta-Analysis of ninety-six research reports examining results of 26,460 people taking 208 different training courses.  A summary of results is presented below:

Across all studies, the results indicated that combining classroom and Internet components was more effective than stand alone Classroom Instruction for teaching job-relevant knowledge and skills.  Blended Learning was 11% more effective than Classroom Instruction for teaching both declarative and procedural knowledge.

(Traci M. Sitzmann, Advanced Distributed Learning; Kurt Kraiger, Colorado State University; David W.  Stewart, University of Tulsa; Robert A. Wisher, Department of Defense)

Similar results were experienced by Quest Diagnostics in 2006 when the company migrated from ... Click Here to read the whole article.

     Going for the Gold
Project Priority Calculator    

You can't improve every process at once, so it is imperative to identify those projects that have the highest priority.  This means building a sound business case incorporating all of the tangible and intangible benefits and costs of a project. Pareto charts are useful tools for setting priorities, but they only rank according to one dimension.

A more complete analysis involves evaluating multiple dimensions of performance in a matrix format. The project prioritization matrix gives each of five factors a designated rating, and the product of those factors gives a relative score that can be used to set priorities.

To build a priority matrix, start with assigning a weight to the direct bottom-line impact, i.e. cost reduction, of each potential project. Then add rankings in other categories such as importance to the customer, implementation cost, feasibility (probability of success), and leverage (positive impact) on other processes. The ultimate priority ranking by the aggregate "score" is different than the priority from cost savings alone because of the weight of other factors.  You may find that a potential project that provides a relatively low direct bottom-line impact may jump to the top of the list based on its high importance to the customer, ease of implementation, and positive leverage on other processes. 

This priority matrix format can be modified to fit the needs of your organization - add or delete factors, or change the rating scales to give greater weight to a factor.  Try it out by downloading the template below.

Download project priority calculator


IN THIS ISSUE
Whistle While You Work
    -Yellow Belts in-training tour American Whistle factory to apply Lean tools
Applying Lean Six Sigma to Lean Six Sigma Training, Part 1
    -This first segment examines why Blended Learning is the best-in-class approach to Lean Six Sigma training
Going for the Gold
    -Use a weighted factor matrix to identify those projects with the highest priority
 
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SigmaPedia is a free online Lean Six Sigma encyclopedia. Terms are entered and edited by a group of Master Black Belts and subject matter experts who have volunteered to build an accessible online body of knowledge for benefit of the Lean Six Sigma community.
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CLOSING NOTE
 
I hope you find this newsletter useful. We enjoy sharing current insights and helpful Lean Six Sigma project tools with our clients and other newsletter subscribers. Let us know if you would like to share a best practice or if you have a topic of particular interest. Feel free to use this forum to showcase your good work and introduce thought provoking issues.
-Bill Hathaway, President & CEO


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