Lean Six Sigma for the Service Industry

Lean Six Sigma for the Service Industry

Six sigma and lean manufacturing are utilized as improvement tools to improve the business. This improvement can take many forms, such as increased business, reduced costs, and improved cycle times or service.

Although lean six sigma projects can be utilized to improve any aspect of a business, it is important to assess the needs from an overall view. Some lean six sigma projects take many months to complete, and it is critical for the time to be utilized wisely. A team of 3-4 six sigma black belts and lean experts can consume of lot of labor and time, and it is critical to have a payback worth the effort.

Non-manufacturing industries have not embraced lean manufacturing to the same extent as those producing a product. Some service industries have found the same principles apply, although the use of lean manufacturing tools is different.

For example, a value added analysis is just as easily conducted with a worker talking on the telephone as someone using one.

The 5S tool can be used to organize the surroundings in the telemarketing office. All materials the telemarketer uses should be organized and within reach without having leave the area. This 5S organization enables the telemarketer to continuously utilize any material in front of them as well as keep an eye on a computer.

The same SMED tools can be used with a administrative assistant as a machine operator. The process map and movement will show the waste in each. The assistant’s travel shows the motion waste. The waiting waste is often huge in any white collar or service job. For example, the waste from waiting on a colleague, manager, supplier, or anyone else can be eliminated.

There are ways to minimize it by removing the root cause as well as finding activities to fill the time. These activities should be of short duration, such as data entry, filing, or printing. Line balancing is easy in a service environment. The key is flexibility.

For example, two tellers at a bank may be required 6 out of 8 hours per day, but the trained lean expert or industrial engineer is required to notice it. The additional two hours of waste comes in buckets of 1-2 minutes throughout the day. Again, this time must be filled with value added activities in a standard work format. If the job isn’t standardized, the two individuals may absorb the time and appear 100% busy.

There are many other instances where job combinations are obvious.

The value stream map is an excellent tool for service industries. Rather than the traditional macro level view of the system, the value stream map can be used in a department or area of the business. An example would be the service desk at a department store.

Begin with the information flow and trigger for activity, which might be a customer. Break the map into various segments showing the few activities that comprise 90% of the work, such as returned goods, request for information, or complaints.

Standardized Operations should be utilized for returned goods to minimize motion and waiting, such as a decision flow diagram. If the manager is called a large percentage of the time, the decision flow diagram needs improvement.

Obviously the 5S and SMED tools are also relevant, as well as root cause problem solving to eliminate the complaints.

When implementing lean manufacturing in a service industry, it is important to tailor the training to the business. Most SMED (single minute exchange of die) training is developed using examples of setup activities for equipment. It is easier for people to understand and see the waste in their processes when the training has obvious applicability.

One of the best long term lean manufacturing tools to apply in a service industry is the kaizen event. Kaizen means “incremental improvement” in Japanese. The kaizen team is comprised of a cross functional team developed to quickly and substantially improve a business issue. For example, a kaizen might be developed to reduce hospital check in time for testing.

The team might include the individuals conducting the check-in, a nurse, manager, an IT representative, and a couple customers. If the average check in time is 35 minutes (the elapsed time from walking into the building until seated in a private room), the kaizen objective might be to reduce the check in time to 20 minutes within 5 days.

Bristol provides a Kaizen tailored study and model for every outsourcing project.  Prior to assuming a project, Bristol trained consultants analyze the environment, identify waste, and plan for process improvement and standardization.  This provides high value of return on investment for our clients and helps them prepare for future success.