Compiled by

Adnan Alam Khan

For BSSE Business Process Analysis
Jan13,25

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LEAN Process Improvement:

Lecture on LEAN Process Improvement

https://www.youtube.com/watch?v=UMFNys3Yavo
1. Introduction to LEAN Thinking
LEAN is a methodology focused on eliminating “waste”—any activity that consumes resources but does
not add value to the final product or service. The concept originated in post-World War II Japan,
pioneered by “Taiichi Ohno” at Toyota, forming the basis of what we now call the “Toyota Production
System (TPS)”.

Key objectives of LEAN:

- Deliver value to the customer.
- Reduce waste and inefficiencies in processes.
- Enhance quality and responsiveness.

2. Basic Principles of LEAN

According to the case study and slide content, LEAN management involves the following key principles:

1. Value: Define what the customer is willing to pay for.

2. Value Stream: Identify all steps in the process that deliver value.
3. Flow: Ensure that value-adding steps occur in a seamless flow without interruptions.
4. Pull: Produce based on customer demand, not forecasts.
5. Perfection: Commit to continuous improvement or “kaizen” to achieve zero waste.

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These principles apply across industries, including manufacturing, healthcare, and service sectors.

3. The Seven Types of Waste (Muda)

LEAN identifies seven types of waste (expanded in the slides):
1. Overproduction – Producing more than what is required.
2. Waiting– Idle time during processes.
3. Unnecessary Transport – Moving materials or products unnecessarily.
4. Overprocessing– Performing tasks that do not add value.
5. Excess Inventory – Holding more stock than needed.
6. Unnecessary Motion – Movements that do not add value.
7. Defects – Errors requiring rework or scrapping.

Example from the Case Study (Slide):

The provided example of a manufacturing timeline highlights wasted time in “casting”, “transportation”,
and “staging”. Only the core processes of “casting, machining, and assembling” are value-adding, while
the rest are categorized as non-value-adding activities.

4. The Continuous Improvement Cycle

LEAN is not a one-time effort but an ongoing cycle:
1. Map the Value Stream – Identify areas of waste.
2. Eliminate Waste – Use methods like the “Kata approach” to define an ideal state, assess the current
state, and incrementally improve.
3. Move to a Pull System – Transition from push-based production to demand-driven processes.
4. Continuously Improve – Reassess and iterate to maintain progress.

5. Cost of Quality (CoSQ)

Another critical concept from the case study is “Cost of Quality”:

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- CoSQ includes both “Cost of Conformance” (preventive measures) and “Cost of Non-Conformance”
(rework and defects).
- As illustrated in the slide’s iterative process example, reducing defects and improving quality at each
iteration directly leads to lower overall costs and time savings.

6. Creating a LEAN Culture

For LEAN to be successful, organizations must foster a culture of continuous improvement:
- Empower Employees: Engage those closest to the process in identifying and solving problems.
- Cross-Departmental Collaboration: Avoid silos; ensure all departments adopt LEAN principles.
- Leadership Support: Ensure leadership drives and sustains the LEAN transformation.

7. Correlation with the YouTube Video

The YouTube video presents a real-world example of applying LEAN principles. It emphasizes:
- Identifying waste using practical scenarios.
- Using “visual management” techniques, such as “value stream mapping”.
- The importance of engaging employees at all levels for sustained improvement.

8. Conclusion
LEAN thinking is about maximizing value for the customer while minimizing waste. By applying principles
such as “continuous flow”, “pull systems”, and “incremental improvement”, organizations can become
more efficient, responsive, and profitable.

Final Thought: Adopting LEAN requires a shift in mindset—treating improvement as an ongoing journey
rather than a one-time initiative.

Case study:
A case study on reducing call cycle time at a technical call center aimed to decrease resolution time from
17 to 10 minutes. A Six Sigma team identified key issues, implemented solutions, and successfully
achieved the goal, enhancing customer satisfaction while saving costs on hiring additional staff.
Link: https://www.youtube.com/watch?v=o7-wWLX3uP0

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Highlights:
The case study demonstrates how a Six Sigma team successfully reduced the call cycle time at a
technical call center from 17 minutes to 10 minutes. Understanding both customer and business
requirements was crucial for initiating the project.

-A Six Sigma team was formed, led by a black belt, to tackle the issue of excessive call resolution
times. Their approach included gathering customer feedback effectively.
-Both customer and business voices echoed the same concern regarding lengthy query resolution
processes, emphasizing the importance of aligning organizational goals with customer needs. This
alignment was key.

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 -The project charter included essential elements such as business case, problem statement, and
goals, which guided the team throughout the initiative. This structured approach ensured clarity.

The goal of the project was to reduce the average call handling time from 17 minutes to 10 minutes,
enabling the team to manage more queries efficiently. This was crucial to avoid hiring additional staff
while maintaining productivity.
-The project defined its scope, focusing on the website maintenance team, while excluding other
processes to streamline efforts effectively. Clear boundaries helped the team concentrate on their main
objectives.
-The project involved key roles, including a vice president as the sponsor and a master black belt as
the mentor. These positions provided guidance and support throughout the project phases.
-Creating a high-level process map called COPIS was essential for clarity among cross-functional
teams. This ensured all members understood the process and their roles within it.

The team identified high cycle time as a critical issue through brainstorming and data collection. They
analyzed various causes related to processes, people, and technology to address this problem.
-The team pinpointed causes such as call hold times and issue validation delays, indicating a need
for improved process management and efficiency.
-Training gaps and unplanned leaves among associates were identified, emphasizing the
importance of workforce management and knowledge retention for better performance.
-Data analysis involved creating a run chart to assess cycle time stability, demonstrating the
importance of statistical tools in quality improvement initiatives.

The analysis of call cycle time is essential for data stability and identifying factors impacting it. The team
aims to reduce the cycle time from 16.775 minutes to 10 minutes.
-Understanding data normality is crucial for appropriate statistical analysis, using tests like one-
way ANOVA when data is normally distributed. This ensures accurate conclusions about influencing
factors.
-The importance of setting and possibly revising project goals based on data analysis is
emphasized. Clear objectives help in directing efforts towards measurable outcomes.

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 -The role of p-values in determining significance is highlighted, with a p-value of 0.000 indicating
that query type significantly affects the call cycle time. This guides the team's focus.

The analysis reveals that hold time has a significant impact on call cycle time, indicating that efforts
should be made to reduce hold times for efficiency. Implementing solutions can help streamline
processes and enhance overall performance.
-Using simple linear regression and fitted line plots, the team can visualize the correlation between
hold time and call cycle time effectively. This method helps in understanding the data better.

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 -Identifying significant axes such as knowledge gaps and lack of standardization is crucial for
improving processes. These factors were rated and prioritized to address the main issues.
-Creating a visual document to cover training scenarios will help in addressing queries that take
longer due to undefined procedures. Documentation is essential for efficient operation.

The team successfully implemented solutions to reduce call cycle time from 16.78 minutes to 10
minutes, enhancing efficiency and customer satisfaction. Their approach included creating a web page
for faster research and control charts for monitoring.
-The initial challenges involved manual searches due to the lack of an automated process,
prompting the need for a more efficient solution. This led to the development of a specific web page.
-After implementing the proposed solutions, the team monitored the call cycle time using control
charts to ensure the process remained in statistical control. This helped validate their improvements.
-The project not only achieved a significant reduction in cycle time but also improved customer
satisfaction and saved costs by reducing the need for additional hires. Overall, the project was
successful.
Solutions

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 New value
OLD Value call cycle time
call cycle
time

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