In this discussion, you will practice identifying process waste and assessing the appropriateness of applying specific Lean tools for eliminating waste.
For your initial post in the discussion forum, review the module lesson and address the following:
- Waste: Identify one of the eight forms of DOWNTIME waste in the process described in the Case Study: Applying Lean Six Sigma in a Financial Services Firm, on pages 56-59 in An Introduction to Six Sigma & Process Improvement.
- Lean Tool: Address the following
a. Suggest a Lean tool to address the identified waste activity
b. Explain why that tool would be appropriate in this situation
c. Describe how it would be applied
Full Answer Section
Why is VSM appropriate in this situation? VSM is appropriate in this situation because it can help to visualize the entire loan processing process and to identify all of the steps where waiting is occurring. This can help to identify the root causes of the waiting and to find ways to eliminate it.
How would VSM be applied? VSM would be applied by first mapping out the current loan processing process. This would involve identifying all of the steps in the process, as well as the time and resources that are spent at each step. Once the current process has been mapped out, the next step would be to identify where waiting is occurring. This can be done by looking for steps where there is no value being added to the product or service. Once the waiting has been identified, the next step is to find ways to reduce it. This can be done by streamlining the process, eliminating unnecessary steps, or improving communication between the different steps in the process.
In addition to VSM, other Lean tools that can be used to address waiting waste include:
- Kanban: Kanban is a system for managing work in progress. It uses visual signals to control the flow of work, so that work is not started until it is needed. This can help to reduce waiting time by preventing work from being done ahead of schedule.
- Pull System: A pull system is a system where work is pulled through the process, rather than pushed through the process. This means that work is only started when it is needed, which can help to reduce waiting time.
- Single-Minute Exchange of Dies (SMED): SMED is a technique for reducing the changeover time between production runs. This can help to reduce waiting time by allowing the production line to run more often.
By using these Lean tools, financial services firms can reduce waiting waste and improve the efficiency of their loan processing processes.
Sample Answer
Waste: In the case study, one of the eight forms of DOWNTIME waste is Waiting. This is when people or materials are not being used productively. For example, in the case study, the loan officers were waiting for information from the credit bureaus, which delayed the processing of loans.
Lean Tool: One Lean tool that can be used to address waiting waste is Value Stream Mapping (VSM). VSM is a visual tool that helps to identify all of the steps in a process, as well as the time and resources that are spent at each step. This can help to identify where waiting is occurring in the process and to find ways to reduce it.