Monday, January 4, 2010

Are Lean and/or Six Sigma Right for My Business, Or Just for the "Big Guys"?

To download the complete White Paper, http://process-fusion.net/default.asp?id=6

Perhaps you’ve seen an article that described how Jack Welsh used Six Sigma in General Electric to bring $8 billion to the bottom line. Or perhaps you’ve heard about the dramatic reductions in cycle time and waste achieved by using Lean methods in the Toyota Production System. Both of these methods of business process improvement have been around now for more than 20 years and have achieved dramatic results in a majority of larger firms and in many governmental units worldwide. Penetration in smaller organizations has been much more limited.

This paper describes how you can determine if these methods are adaptable to your situation. I describe how the key features of these proven methods can be adapted to smaller businesses and to smaller units within larger entities – an application of the Pareto Principle (the “80/20” rule). I describe a “low-calorie” approach that will deliver a large part of the potential benefit of Lean and Six Sigma at a fraction of the usual cost. These methods can be scaled to fit – they’re not just for the big guys!

As there are many misconceptions about what these methods actually are I begin with a straight-forward description of each method and then get into how you might go about deciding if they are appropriate for your organization.

2 comments:

  1. I am not so sure that LSS has actually been successful in the business world. However, within DOD, it has been implemented with a heavy dose of bureaucracy, including numerous forms, reporting and rigid methodologies that require tollgate reviews that don't focus on advancing the goals of the project.
    But I believe that LSS is fundamentally flawed, because it places so much emphasis on listening to your customers prior to getting started with any meaningful improvement. Better to just focus on eliminating waste in the process, rather than fritter away effort on customer focus groups and surveys when they aren't going to add value.
    Often, we know what must be done to make improvements, then take months to perform an LSS event and dissipate all the energy and focus that could have gone to make improvements.

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  2. Thanks for including me! Those are all blogs that I read regularly too.lean six sigma training

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