Why YOU Need Lean Six Sigma – Part 1
Lean and Six and Six Sigma methodologies have finally been integrated; some call it the big bang of the quality movement. This combination gives the business world the tools it needs to deliver top-quality services and products.
Anyone will tell you that change must be driven downwards from the top, so it is up to the leaders of each organization to push through and transform changes in their organization.
The gross domestic product of the USA has been gradually shifting from manufacturing to services over the past 20 years, with a visible differentiation in non-manufacturing business sectors in the form of service delivery and product ingenuity.
The Lean Six Sigma drivers
Lean Six Sigma is based on the premise that to deliver service and product excellence; organizations must have an in-depth knowledge of their internal processes and a profound understanding of their customer’s current expectations and future needs.
Integrating Lean Six Sigma has created an approach that is more flexible and applicable when addressing business challenges. This is because lean six sigma helps organizations transform a more traditional business and operational management model into a process management one.
This change allows for increased clarity, consistency, ownership, and control of business processes.
Build in the case for quality.
There are two main reasons why an organization needs to establish a quality culture:
Letting the numbers tell the story
This is included in organizations today. However, the need for quality must be established within an organization before it begins this journey. Studies have shown that the bottom line performance of companies emphasizing quality is markedly improved.
The study’s findings came up with some impressive statistics:
- A 91% growth in operating revenue compared to 43% for the control group
- A 69% increase in sales compared to 32%
- A 79% increase in total assets compared to 37%
- The 23 per cent increase in the number of employees compared to 7%
- An eight per cent rise in return on sales compared to no improvement for the control group
- The 9% improvement in return on assets compared to the 6%
From the above, it is clear that effective implementation of quality principles will improve long-term financial performance for most organizations.
The main reasons for organizations to deploy Lean Six Sigma is to help alleviate market pressures and, in the process, to transform themselves into more responsive and competitive entities.
For this to occur in your organization, it will need to set out on the quality journey, and lean six sigma can help an organization achieve quantifiable improvements by:
- Creating a sustainable quality culture
- Bringing clarity to “invisible” processes and enhancing control
- Providing a corporate strategy for differentiation
- Becoming a world-class service or product provider at the lowest cost
- Providing customers with what they value
- Reducing the hidden costs associated with poor-quality products or services
- Disproving the perception that lean six sigma applies only in manufacturing
Building a sustainable quality culture
Many organizations have attempted to introduce quality methodologies, and of those that failed, one reason stands out more than any other: a lack of sustainable quality culture.
With Lean Six Sigma, an organization sets out on a distinct journey using common operating mechanisms, training, organizational structure, objectives, and a common language.
Lean Six Sigma Masterclass – Everything you ever wanted to know about DMAIC
4.3
Boosting the core fundamentals of L6S
Lean Six Sigma takes the features of Lean ( speed), and combines them with Six Sigma (stability and accuracy). This Lean Six Sigma Green Belt Masters Series will teach you how to streamline processes, improve business performance and supercharge your career
The Projex Academy
related posts: