Lean Lean Six Sigma Success Is Driven By Great Business Improvement Projects” alt=”Six Sigma”>Six Sigma is mostly a enterprise enchancment technique. And let’s face it; most firms are doing enterprise enchancment in a single kind or one other. Where they typically fall quick is in one of the crucial vital elements of success – enterprise enchancment challenge identification.
What I’ve discovered over the previous decade is that the overwhelming majority of firms have comparable approaches to enterprise enchancment. To perceive what I imply check out this instance.
The following is a listing of enterprise enchancment tasks for a medium sized clothes enterprise.
BUSINESS IMPROVEMENT PROJECT LIST
– Expand the warehouse and implement a bar coding system
– Renegotiate ‘per unit’ provide charges from the suppliers of clean shirts
– Implement a ‘cascading’ based mostly system of efficiency administration
– Negotiate a brand new freight contract
– Introduce the PASS security system throughout all warehouses
– Replace key entry with proximity card system
– Distribute a quarterly firm publication
– Individually cling wrap costume shirts
– Negotiate a company alliance with the Zenith Hotel chain
What do you make of that listing?
Notice it is merely a listing of options. Each concept is a means of fixing some perceived downside. For instance renegotiation of unit provide charges is an answer for the issue of accelerating prices to supply a unit of no matter it’s they manufacture.
In the absence of an enchancment technique like Lean Six Sigma, this tends to be the way in which enterprise enchancment is approached.
Ideas for making the enterprise higher, in resolution kind, are recognized and undertaken as enchancment tasks. Managers genuinely imagine they’re doing enterprise enchancment and do not know why you’d wish to add a Lean Six Sigma methodology to it.
I’ve even seen a state of affairs like this the place one supervisor believed the corporate was already doing Lean Six Sigma.
SO WHAT’S MISSING?
The main shortfall with this method is many alternatives for real efficiency enchancment are missed as a result of SOLUTIONS ARE NOT KNOWN. This method produces a listing of enchancment concepts that reply one query:
‘What can we DO to enhance our enterprise?’
The enterprise enchancment method is considerably broadened when enchancment concepts are captured for which SOLUTIONS ARE NOT KNOWN. A brand new query needs to be requested:
‘WHERE can we enhance that might add worth to the enterprise?’
In the case of our clothes producer, this query may generate concepts like these.
– The variety of incidents of incorrect order processing
– The cycle time for turning round an order
– The proportion of on-time creditor funds
All are worthwhile tasks as a result of they positively impression clients in addition to the enterprise. Yet none of them are options, solely focal factors for enterprise enchancment.
A broadened method to Business Improvement seems to be like this:
Business Improvement Project Ideas = SOLUTION NOT KNOWN + SOLUTION KNOWN
THE ROLE OF LEAN SIX SIGMA
Where methodologies like Lean Six Sigma come into play is in figuring out options for bettering the efficiency of PROCESSES.
Because of the orientation of those methodologies in the direction of using information, the extra applicable processes for Lean Six Sigma focus are these which are HIGHLY CYCLIC and have REPETITIVE or STANDARDISED course of steps.
For instance, lowering order errors in an order filling course of, or lowering cycle time for order processing in an order filling course of are each good as Lean Six Sigma tasks. Solutions are NOT KNOWN, the method is extremely cyclic and steps are repetitive.
NON LEAN SIX SIGMA FIT
Not all enchancment concepts with out options might be Lean Six Sigma tasks.
For instance lowering the variety of late creditor funds could also be solved through the use of among the course of mapping and trigger impact evaluation instruments from the Lean Six Sigma suite. However, if the workforce recognized ‘compliance with phrases of cost’ as the principle situation, the challenge is clearly not an ideal match for the Lean or Six Sigma methodologies.
Opportunities reminiscent of ‘enhance worker morale’ or ‘enhance employees consciousness of firm efficiency’ or ‘enhance the standard of induction coaching for brand spanking new staff’ are additionally poor suits with Lean and Six Sigma of their pure kind. However, work on these issues will profit from using Lean Six Sigma instruments find options.
WHAT’S MY POINT?
Business enchancment with Lean Six Sigma continues to be simply enterprise enchancment. However, it establishes a framework the place the corporate can work on:
(a) tasks the place options are identified in addition to tasks the place options have but to be recognized, and
(b) each course of enchancment and non-process oriented tasks.
Business Improvement with Lean Six Sigma seems to be like this:
Business Improvement Project Ideas = Lean Six Sigma Fit (SOLUTION NOT KNOWN) + Non Lean Six Sigma Fit (SOLUTION NOT KNOWN + SOLUTION KNOWN)
Notice the prevailing enterprise enchancment system is just not eradicated. No… it is ENHANCED by the INCLUSION of Lean Six Sigma.
So what about enterprise enchancment challenge identification?
If you are going to undertake a proper enterprise enchancment initiative, then use a challenge choice method that has GENERIC utility in that it is appropriate for firms utilising a spread of enterprise enchancment methodologies reminiscent of:
– Six Sigma,
– Lean Manufacturing,
– Design for Six Sigma,
– QFD
– Theory of Constraints..and many others
The step of IDENTIFYING enterprise enchancment challenge concepts is a vital one within the sequence because it units the initiative up for both success or failure.
MORE THAN ONE WAY TO SKIN A CAT
We do not wish to take an method fairly so unsophisticated as simply asking ‘What do we have to do to enhance our enterprise?’ Let’s inject some science and technique in the way in which we deal with the query of the place and learn how to enhance our companies.
Some of the extra strong scientific methods are these:
– Problem or efficiency hole identification
– Problem or efficiency hole creation
– Business driver evaluation
– Analysis of processes for constraints
– Analysis of efficiency in opposition to buyer expectations or every other key enterprise measures
Opportunities can and needs to be recognized by having a look on the enterprise from a wide range of angles.
WHY THERE ISN’T THE ‘ONE’ WAY
Firstly, let’s acknowledge that each one companies differ; no two are precisely the identical. The means through which a enterprise identifies alternatives for development in worth might be pushed by many components together with maturity, market forces, working strategies and tradition.
Secondly, enterprise and working pondering patterns differ so drastically that no single method is finest.
Comments