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Wine & Waste: A Primer On Value - GoLeanSixSigma.com

Wine & Waste: A Primer on Value

Wine and Waste: Two terms that are not typically “paired” in our house. Wine is rarely wasted in the consumption process (unless you consider unneeded calories, but let’s not go there). However, what about during the buying and tasting process? There must be some waste there. Or, so I assumed…

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8 Wastes - GoLeanSixSigma.com

8 Wastes Check Sheet

What are the 8 Wastes? Waste is any step or action in a process that is not required to complete a process (called “Non Value-Adding”) successfully. When Waste is removed, only the steps that are required (called “Value-Adding”) to deliver a satisfactory product or service to the customer remain in the…

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Lean Six Sigma Q&A - GoLeanSixSigma.com

How can I apply the Lean Six Sigma methodologies in order to reduce costs, defects and variations while increasing efficiencies to meet customer requirements?

I work in the logistics and warehousing sector. How can I apply the Lean Six Sigma methodologies in order to reduce costs, defects and variations while increasing efficiencies to meet customer requirements? In any industry, the important thing to do is to start with searching for waste. First understand the The 8 Wastes and then start looking…
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Lean Six Sigma Q&A - GoLeanSixSigma.com

What Wastes could exist in electronic records management?

Electronic Record Management could benefit from both an 8 Wastes Assessment and a 5S. People often assume that once a process is automated, there’s nothing left to improve, but we’ve found otherwise. In some cases, the process is automated before it’s been streamlined, so the automation includes digital versions of the manual non-value added steps.…
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Lean Six Sigma Q&A - GoLeanSixSigma.com

How do you convert eliminated Waste into dollar values that show how they affect the bottom line to convey the benefits of Lean Six Sigma to the CFO/CEO?

Full Question: In an IT company, the labor hours saved are not always easy to convert in to dollar values – Finance is not able to see those dollar values unless you convert those hours saved into billable hours. If these hours aren’t converted, then the hours saved by eliminating waste is not a direct bottom…
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Lean Six Sigma Q&A - GoLeanSixSigma.com

If we were to eliminate Wastes in any form, how would we be able to convert the waste into dollar value in order to convince a Bank to start adopting Lean?

The calculation you’re looking for is COPQ or Cost of Poor Quality. The idea is to calculate the labor hours saved by removing waste and then multiply them by the average loaded salary of the process participants impacted. In the case where Defects cause the process to “scrap” products, you can calculate the lost value…
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Lean Six Sigma Q&A - GoLeanSixSigma.com

What Wastes could exist in a Shipping Department?

All sorts of Wastes could exist in a Shipping Department. Here are a few examples: Unnecessary transportation of products Unnecessary motion of people Unnecessary waiting (waiting to pack and/or ship, or customers waiting) Unnecessary inventory (any excess inventory creates LOTS of waste: counting it, moving it, organizing it, damaging it (causing defects). Unnecessary inventory means…
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Lean Six Sigma Q&A - GoLeanSixSigma.com

Can Lean Six Sigma be applied in the software industry?

Can Lean Six Sigma be applied in the software industry? What are the wastes? There’s waste in every industry, including the software industry. Depending on the department the waste would take different forms. Defects could either be bugs in the actual software, not developing the features requested by the customer, or shipping the wrong products…
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