1、Page 1Lean Six SigmaSimplifiedLean Six SigmaSimplified The Journal of Profits Through Process InnovationProcess Innovation GuruJay ArthurReveals the Secrets ofLean and Six SigmaDeveloping a Lean Six Sigma MindsetWhat is Lean?What is Six Sigma?The Power Laws of SpeedThe Power Laws of Quality_Process
2、Innovation GuruJay ArthurReveals the Secrets ofLean and Six SigmaDeveloping a Lean Six Sigma MindsetWhat is Lean?What is Six Sigma?The Power Laws of SpeedThe Power Laws of QualityPage 2Dear Business Leader,Have you ever sat down to figure out how much moneyyoure losing because of misses, mistakes, e
3、rrors,omissions, defects and delay? Ifyour business is like 99% of allbusinesses, youre blowing 25-40% of your profit margin to dealwith, remedy, resolve and mitigatethese kinds of problems. Now,maybe your people are perfect andnever make mistakes, maybe yourprocesses are so mistake-proofthat nothin
4、g ever goes wrong, butbe honest: Isnt there some levelof daily crisis management thatyouwish didnt exist? Arent there too many complaints, toomuch rework, too much waste, too much fire fighting andtoo much heroism by employees on a daily basis?Fifteen years ago, I was working in what Henry Milleronc
5、e called the “Cosmodemonic Telephone andTelegraph Company.” Like most monopolies, we could beinefficient and ineffective as long as we didnt irritate toomany customers or regulators because we could raiseour rates to extract our government specified rate ofreturn. Around that time, Total Quality Man
6、agement(TQM) was all the rage and I got involved becausecompetition from other phone and cable companies wason the rise. One way or another, we were going to haveto start to squeeze our costs to maintain our margins.Downsizing is one way to get results. It forced managersto stop doing all kinds of u
7、seless things, but it was prettypainful. Still is. Studies have shown that downsizingwill cost you 25% of all employee productivity. Sodownsizing better save more than 25% or youll have anet loss.Let me ask you this question: “If you had 25% morestaff, what new and interesting customer serving proje
8、ctswould you undertake? What new products or serviceswould you create? What possibilities would youembrace?” Thats the power of Lean Six Sigma: moreprofit from streamlining your existing processes whichwill free up resources to do things you just dont havetime to do.In the phone company, I worked wi
9、th teams that foundways to save tens of millions of dollars. Since I left thephone company in 1996, Ive helped other companiesfind ways to simplify, streamline, and optimize theirprocesses to add $25,000, $250,000 or more to thebottom line. The methods and tools are simple, but onlyone company in 50
10、 will take the time to learn and applythem. Most people would rather rely on gut feel, commonsense, and trial and error to find and fix the problems intheir business. But heres what Ive learned: at somelevel of speed, quality and profitability these inherentproblem solving tools stop working. Thats
11、when youneed a new and improved toolkit to jump to new levels ofperformance and profitability.If youre open to it, this magazine is packed with insightsand resources to accelerate your productivity and boostyour bottom line.Jay ArthurJay ArthurThe Journal of Profits through Process Innovation0Lean S
12、ix SigmaA Personal Message from Jay ArthurPage 3Inside this IssueLean Six Sigma SimplifiedDeveloping a Lean Six Sigma Mindset _ 4The Power Laws of Speed _ 10The Power Laws of Quality _ 11What is Lean? _ 8What is Six Sigma?_ 9KnowWare International Inc.dba Lifestar2244 S Olive St.Denver, CO 80224888-
13、468-1537 303-756- MMVI KnowWarePage 4MindsetIm willing to bet that your business can be a lot moreprofitable than it is now. Ive worked with businessesranging in size from an independent muffler shop tohospitals to Fortune 50 companies. Ive helped them saveanywhere from $25,000 to $25 million that c
14、ould be addedto the bottom line. The process is simple, but almost everybusiness overlooks this opportunity to bank more cash andboost the bottom line.Every Business HasTwo Sources of Cash FlowCash is the lifeblood of your business. Businesses areonly as healthy as their cash flow. Every business ha
15、s twosources of cash flow:1. External customers give you money for your productsand services. The traditional wisdom says that you needto sell more to more customers to increase your cashflow.2. Internal processes are another source of cash becausemistakes, errors, defects and delays make yourbusine
16、ss leak cash like a rusty bucket. Why are internalprocesses a source of cash? Because when you plugthe leaks, you get to keep all that money!Id like you to consider that most businesses spend all oftheir time and money focused on trying to fill the cashbucket with new customers and virtually no mone
17、yplugging the leaks caused by internal processes. Almostevery company will spend a small fortune trying to gain aslight edge in marketing and sales that will allow them toget or keep a customer. The only problem is that thiselusive edge is constantly in peril from competitors and thefickle perceptio
18、ns of customers. You can never fullycontrol this aspect of your cash flow.You do, however, have complete control of the processesand technology inside the gates of your business. Everyprocess leaks money. Even if you only make one mistakein every 100 orders, bills, purchase orders, products orservic
19、es, that one percent error rate can add up to 6-12-18percent across your business.The Juran Institute has found that the cumulative cost ofmistakes, rework, and scrap will add up to 25-40% of yourtotal expenses. Dont believe its that much? Spend a daytracking every mistake, glitch, and customer comp
20、laint inyour business. Then calculate the cost of finding and fixingeach one. How much time does it take? What does it cost?If you and your employees werent fixing the mistakes,what could you be doing instead? Multiply this by thenumber of days in the week, month, or year. Ouch!These errors arent yo
21、ur fault and theyre not the fault ofyour people. Its your systems and processes that are atfaultthey let people make mistakes that could beprevented.Every Process ProducesTwo Unwanted Side EffectsEvery process produces defects and delays. The defectshave to be fixed or scrapped. Big leak #1: Fixingm
22、istakes that shouldnt have been made in the firstplace that consume time and money that could be betterspent serving customers and boosting the bottom line.Big leak #2: The delays that cost you time and moneythat dampen your productivity and profitability.Even a small reduction in defects and delay
23、in yourmission-critical processes can give you a sustainablecompetitive advantage. Customers arent stupid. Theycan tell a finely tuned supplier from a clumsy one. Onceyou have a head start, your competitors will always beplaying catch up.Secret #1: Work ON Your Business, Not IN ItIn the 1970s, I own
24、ed a Mustang. I loved to drive in mycar and I liked to work on my car, but I couldnt bothwork on my car and drive in it at the same time. As youknow, if you dont periodically change the oil, tune theengine, fix the brakes, and change the tires your car willmost likely breakdown. And it will most lik
25、ely break downat the least opportune moment. While most businessowners will take time out of their hectic schedule to havetheir cars serviced, most never think to do the same fortheir businesses.Do you feel like your business is controlling you, not theother way around? Can you leave your business o
26、rdepartment in the capable hands of your employees ordoes it demand too much of your attention? Is yourbusiness an asset that any sane business person wouldwant to buy or franchise, or is it too chaotic?In the 1990s, Michael Gerber captivated the attention ofbusiness owners with a book called the E-
27、Myth. Heargued that most people spend all of their time working intheir business, but most never work on their business,creating and improving the processes and systems thatminimize mistakes and maximize output. If you want areliable, dependable business that consistently producespredictable results
28、, you will need proven methods andtools to make it happen.The Journal of Profits through Process InnovationAre You Overlooking the Biggest Profit-MakingOpportunity in Your Business?Page 5Secret #2: Become Process-OrientedIts easy to be seduced by the excitement of crisismanagement and firefighting.
29、It becomes a way of life inmost businesses. When daily heroics are required toavoid missing commitments and preventing defectiveproducts from escaping into the hands of customers,companies come to rely on heros.This is another mistake. People-oriented businesses believe thatquality and productivity
30、are a functionof their people, not their processes.People-oriented businesses have topay a premium for the best people.When these people leave, they take their highly refinedmental processes with them.Process-oriented businesses, on the other hand, rely onmistake-proof processes to ensure that produ
31、cts andservices are delivered on time and error-free. Process-oriented businesses have procedures for everything fromcleaning restrooms (e.g., McDonalds) to maintaining Navyfighter jets. When you have good processes, theres lessneed for overtime and you can hire the lowest skill-levelnecessary for t
32、he job. Labor costs are cheaper becauseyou arent bidding for a small group of the best people.Best of all, you can go on vacation, secure in theknowledge that your business will run itself.Secret #3: Implement a ProvenImprovement SystemMost managers and business owners think they shouldbe able to fi
33、nd and fix all of the problems in theirbusiness, and they can up to a point, but then they hit awall. This isnt your fault. Research has shown that oneset of problem solving methods (e.g., common sense andtrial-and-error) will work for a certain class of problems,but not another. Then you need a new
34、 set of methods andtools to solve the next class of problem. Considerantibiotics: they fight bacterial infections, but not viruseslike the common cold. The same is true in business.When people first start a business, processes are createdby accident in an ad hoc way. Problems with theprocesses are f
35、ixed using common sense and trial-and-error as the business grows. But at some point, the abilityCalculate Your BenefitsYour BusinessReduce CostsIncrease Sales1. Annual Gross Revenue$_$10,000,000$20,000,0002. Annual Expenses$_$ 9,000,000$18,000,0003. Current Net Profit (#1-#2)$_$ 1,000,000$ 2,000,00
36、04. Reduce Expenses by 10%$_$900,0005. New Net Profit (#3+#4)$_$ 1,900,000Which is easier? To increase sales by 100% or cut your costs by 10%?Develop aPlug theLeaksMindset!Lean Six Sigma Simplifiedof these two methods to solve the more mysterious andcomplex problems begins to fall off. Eventually, t
37、hey stopworking all together. This early-success and later-failuresyndrome affects all problem-solving methods. Its oftenshown as an S-curve.Throughout time, people have routinely found ways tosolve seemingly unsolvable problems. Edison invented thelight bulb. The Wright brothers figured out how to
38、fly. Butto do this, they invariably had to invent new ways to solveproblems that exceeded the grasp of the old methods.Fortunately, the methods and tools for creating andimproving your processes and systems have already beendeveloped and proven in every industry. I have found thata few key tools use
39、d in the right order are all you need tostart making immediate breakthrough improvements inspeed, quality, productivity and profitability.Double Your ProfitsIf youre like most businesses, reducing costs by 20%would more than double your profits. To make this easy,Ive created a complete tool belt for
40、 working on yourbusiness. Its all here: methods, tools, technology, andtraining to handle everything you need to plug the holes inyour cash flow and start saving 20-35% of your expenses.Dont Have The Time?The urgencies of any business can consume all of yourtime. Fortunately, given the right gauges
41、on the dashboardof your business, its easy to diagnose where to focusyour improvement efforts even while you are still workingin your business. Thats why we created the QI Macrossoftware to simplify your initial foray into measurementand improvement.Too Busy Bailing to Plug the Leaks?Every business
42、has to improve the key aspects ofperformance every year just to keep even with thecompetition. The only question is whether youre going torely on the declining effectiveness of common sense andtrial-and-error or are you going to upgrade your ability tosolve the stubborn, seemingly unsolvable problem
43、s in yourbusiness? If you arent going to employ the provenstrategies of Lean Six Sigma, what are you going to doinstead?Page 6Four Steps to Productivity and ProfitLearn How To Maximize Your Profit UsingThis Four-Step Million Dollar ImprovementStrategy1. Develop Laser Improvement FocusListen to the V
44、oice of the CustomerIdentify the Critical to Customer IndicatorsDevelop a Balanced Scorecard ofPerformance2. Double Your Speed by Eliminating YourSpeed Bumps3. Double Your Quality Using the 4-50 Rule4. Monitor and Sustain the ImprovementEvery business succeeds or fails through a combination ofpeople
45、, process and technology. The Plug the LeaksSystem shows you how to make dramatic performanceimprovements that will improve operational efficiencyand boost the bottom line.The Journal of Profits through Process InnovationPlug the LeaksFREE!1. Lean Six SigmaLessons On LineYou get seven emaillessons o
46、n how to startmaking improvements!2. The QI Macros for Excel30-Day EvaluationDownload the lessons andsoftware for FREE 7I believe that your teachingmaterials are the best format andmost simplistic on the market. I amin a position to share your materialswith the continuous improvementteams at my Ford
47、 location (Oakvilleassembly plant).Wallace Tait, Ford of CanadaAs a certified Six Sigma Black Beltwith more than $30,000 of SixSigma training under my belt I feel Iam qualified to state categoricallythat your products and methods aretruly outstanding and, mostimportant of all, they get RESULTS.Britt
48、ain Ladd - Manager of Domestic Transportation Michaels Stores, IncAvailable from KnowWare International Inc. 888-468-1537 or 303-756-9144 or ? 4% of any business causes 50% of thewaste, rework and lost profit. Laser focusyour improvement efforts.? 25-40% of profits are wasted fixing defects.Learn to
49、 use the 4-50 rule and tools toeliminate unnecessary mistakes and errors.? Your people are busy, but your product isidle 95% of the time. Use the power laws ofspeed to eliminate delays and shockcustomers with your responsiveness.Turn Your Cash Cow into a Golden GooseEvery Business Has Two CoreProcess Problems: Defects and DelayPlug The Leaks InYour Cash FlowSystem:1.Plug the Leaks Workbook2.Plug the Leaks Audio 5-CDLearning System3.QI Macros SPC Software for Excel4.QI Macros Training CDIntroductory offer: $497Lean Six Sigma Simplifiedin Your Cash FlowPage 8LeanThe Journal of Profits through P
