Lean Six Sigma Methodology

Lean Six Sigma is a process improvement methodology that relies on a collaborative team effort to improve performance by systematically removing waste, combining Lean and Six Sigma to eliminate the eight kinds of waste

Lean Six Sigma projects comprise aspects of Lean’s waste elimination and the Six Sigma focus on reducing defects.

Lean Six Sigma utilizes the DMAIC (Define, Measure, Analyze, Improve and Control) phases similar to that of Six Sigma. Lean Six Sigma projects comprise aspects of Lean’s waste elimination and the Six Sigma focus on reducing defects, based on critical to quality (CTQ) characteristics.

Six Sigma use statistics tools for characterization and study of the processes, this is the reason of the name, as sigma is the standard deviation which gives an idea of the variability in a process and the goal of Six Sigma is to reduce it so that the process is always within the limits set by customer requirements.

Note: DPMO means Defects per million opportunities

1 sigma = 690,000 DPMO = 32% efficiency
2 sigma = 308,538 DPMO = 69% efficiency
3 sigma = 66,807 DPMO = 93.3% efficiency
4 sigma = 6.210 DPMO = 99.38% efficiency
5 sigma = 233 DPMO = 99.977% efficiency
6 sigma = 3.4 DPMO = 99.99966% efficiency
7 sigma = 0.019 DPMO = 99.9999981% efficiency

Lean is a systematic method for the elimination of waste (“Muda”) within a manufacturing system. Lean also takes into account waste created through overburden (“Muri”) and waste created through unevenness in work loads (“Mura”).

The eight muda are:

1.Transport (moving products that are not actually required to perform the processing
2.Inventory (all components, work in process, and finished product not being processed
3.Motion (people or equipment moving or walking more than is required to perform the processing
4.Waiting (waiting for the next production step, interruptions of production during shift change
5.Overproduction (production ahead of demand
6.Over Processing (resulting from poor tool or product design creating activity
7.Defects (the effort involved in inspecting for and fixing defects
8.Skills (waste of Skills, referred to as “under-utilizing capabilities and delegating tasks with inadequate training)

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IT Governance & ISO 38500

IT Governance or Corporate governance of information technology is a subset discipline of corporate governance, focused on information and technology (IT) and its performance and risk management.

The interest in IT governance is due to the ongoing need within organizations to focus value creation efforts on an organization’s strategic objectives and to better manage the performance of those responsible for creating this value in the best interest of all stakeholders.

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Cyber Security Resilience & Risk Aggregation

Cyber Security Resilience & Risk Aggregation concepts have a near relationship because Risk aggregation refers to efforts done by firms to develop quantitative risk measures that incorporate multiple types or sources of risk.

Cyber Security Resilience is the capacity to have different Cyber controls which can provide the organization an adequate resilience according the organization risk appetite by doing risk management of the aggregation of multiple types or sources of risk.

One interesting topic is Internet of Things (IoT) which is increasing in our personal and professional life. The more assets are “shared” (including Critical Infrastructures and Smart Cities IT assets) the more risk we are assuming in our organization. All these risk is added using Risk Aggregation, so more effort we will need to do to improve our security to get an adequate Cyber Security Resilience level.

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EU General Data Protection Regulation

On 14/04/2016 EU Data Privacy had been approved the regulation which is, nowadays, mandatory. However companies have 2 years to carry out its suitability before receiving an economic penalty for not having completed it.

On 04/05/2016 EU Data Privacy regulation had been published in the official bulletin of the European Union, after 20 days (25/05/2016) the new EU Data Privacy regulation became official.

The General Data Protection Regulation (GDPR) have big economic penalties which will start to be real after 2 years this regulation was approved so: May 2018

Penalties of 10 millions or up to 2% of global turnover for the previous year and 20 millions or up to 4% of global turnover for the previous year are established

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Payment Fraud

Nowadays the payment fraud landscape is changing quite fast. Changing from classic schemes as bank cheque fraud, faked manual payment orders to organized crime with corporate as targets.

Understanding fraud also occurs when dishonest acts are committed without personal gain but are intended to create a loss or risk of loss for another person or entity. This includes the intentional misrepresentation of financial condition.

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