The 1-2 punch of Lean and Six Sigma
The 1-2 punch of Lean and Six Sigma is pretty powerful and shows up in the concept of Rolled Throughput Yield (RTY). The graph below illustrates the concept. Certainly it is a "nugget" that I learned many years ago. I am surprised that people sometimes forget how these two methods come together.....


​It really brings into focus the importance of many tools, and concepts used.  For example, getting rid of Non-Value add steps ("stuff" the customer deosn't want to pay for, adds no value, but yet could result in defects) reduces complexity and helps improve capability. Or reducing variation in order to improve capability.

​What are your thoughts on Rolled Throughput Yield?
2 Replies
I routinely work with companies that have no concept of RTY.  If they talk about yield at all, it is only an overall yield (total good out vs. total starting) completely ignoring the scrap or rework experienced at any individual process step (the hidden enterprise).  It is shocking that most companies I encounter are learning of RTY for the first time when it is taught in a LSS class.  In fact, it happened to me this week while teaching at a major, nationally known, teaching hospital.  
Additionally, companies are shocked to learn that most of their material and labor variance from Financial reports can be found when RTY is calculated.
HI Joe, I agree and am starting to look at how I can use the RTY concept in Healthcare since they have many handoffs in their processes.  I am working to have a "risk" assessment that will give a % at each step.  Then using the RTY approach show why it is essential to improve the outcomes at each step and where possible reduce the steps (complexity).  Could be my next talk...