One of the recurring sentiments I hear from business executives is that lean Six Sigma (LSS) simply takes too long to implement. Without senior management buy-in, implementing it is not only difficult, it’s also nearly impossible. What if there were an easier way that resulted in faster improvements and better engaged the workforce? I believe there is such a way, and it’s through process simulation.
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Getting baseline consensus more quickly
Many employees get trapped in overanalyzing the existing process. It’s quite difficult to progress when employees’ experiences and perspectives sway them from accepting the baseline process.
Process simulation tools help to quickly determine what the normal operating process is, as opposed to exception processing. Employees can view how work is completed throughout the process, where work activities become constrained, and where bottlenecks start. Compare the simulation results to the actual process to determine whether the model is capable of reflecting an accurate view. If it can accurately predict performance results, discussions can move away from what the process looks like and steer toward how to improve the existing method.
More accurate expectations
Once a process simulation model replicates an existing process with accuracy, establishing the expected benefits from a LSS initiative can be done with much more precision.
During the define phase of a LSS engagement, we typically estimate the expected benefits from implementing some LSS projects. Normally, these estimates are high-level targets that address critical-to-quality components and customer requirements.
When using a process simulation model, you may be required to do more detailed analysis and process mapping before identifying and quantifying the expected benefits. However, when you create what-if scenarios in a process simulation model, it’s quite easy. For example, if we wanted to reduce processing time by 75 percent, we could easily validate that as well as the costs by creating some simple scenarios based on the baseline model we created. The output from the simulation model would not only tell us whether making certain changes would result in the desired goal, it would also tell us at what costs and any performance improvements that would result. Because we know at this point the simulation model will accurately reflect the current process, we can have some confidence in the estimated benefits derived from making changes to the model.
Evaluate numerous end-state models and improvements quickly and effectively
Typically, during the improvement phase of a LSS model, we identify the end-state process and improvements that are going to be made to the existing process to generate the objectives. Many methods are used to identify the end state and improvements to the existing process; these include structured brainstorming sessions, statistical analysis, design of experiments, or the Monte Carlo simulation. Once we have identified those improvements and some candidate end-state candidates, we can run short pilot studies to evaluate which options yield the greatest results. Given the methods being used and the time required, there are a limited number of scenarios that can be evaluated and tested.
With a process simulation model, several end-state models and improvements can be quickly designed and evaluated in a risk-free environment. Based on the simulation performance, we can select the top candidates to pilot.
Although the traditional method of identifying an end-state model and improvement appears to be a similar process to process simulation, the simulation method requires much less effort, is quicker, and can evaluate far more possibilities.
Has LSS become something that needs improvement rather than an improvement process? What are some of the ways that you have used process simulation software to improve the outcomes from your LSS initiative? Share your thoughts.
Comments
"Implement"
Yeah, it takes a long time to change a culture.
If you think the goal is to "implement" Lean (as if it's a piece of software to install), the game is already lost.
I would personally be very surprised if simulation software engaged anyone beyond the engineers or consultants running the simulation software or exercise. Do you have evidence that using simulation "speeds up" Lean, if that's really the long-term goal?
Mark this article is about
Sure
Yeah, an example?
Glad to
The organization's senior management for many years had not been able to agree on a resource allocation model. Several program areas were constantly over budget citing unique reasons for going over budget for their areas.
We implemented LSS coupled with using process simulation techniques that resulted in senior management to agree on a resource allocation model that resulted in all areas coming within budget through improved process performance. This was accomplished within 5 months. Two years later they still come within budget using the techniques and resource allocation process we developed with them.
The employees at all levels had an opportunity to use the process simulation model to 1) validate the existing process, 2) determine which best practices improved overall performance and which did not and 3) optimize the value stream. We used many methods to accomplish this including going to where the work was done to observe the process, mapping the value stream, a detailed data collection and process simulation and use it combination with coaching and mentoring. The key was to use process simulation as a learning and change management too more than an analysis tool. The simulation tool enabled employees to visualize the process from to end to end and observe what worked and what did not.
I encourage you to try it as a learning tool.
Another approach....
During the “Define” phase, use the company’s strategic plan (that has been cascaded to the area of concern) to set a goal for the team to accomplish. Then coach, mentor, teach, hand-hold, or whatever needs doing to help them accomplish the goal.
By engaging the people doing the work to solve the problem and showing them how the solution improves the overall company has been a fairly well “tried and true” approach to “implement” a culture change.
Thank you for your comment
Thank you for your comments
Yes engagement, coaching, mentoring, teaching and effective change management is required throughout all phases. A relentless pursuit to create a learning organization is always a key objective. I have found coupled with this and other strategies, process simulation can add signficant value.
It can be a great asset in demonstrating how employees' contributions increase organizational value.Grammar
To the editors:
Shouldn't the headline say "an LSS implementation"?
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