The Goal of Lean Sigma

Since Lean Six Sigma starts with customers, its goal is clear—to eliminate anything that doesn’t meet their needs. In Lean Six Sigma terms, things that don’t meet customer needs are called defects. So if you promise a 3-day turnaround time and it takes you 3.5 days, that’s a defect. If you’re entering a purchase order and enter the wrong product code, that’s a defect. If you’re producing lamps and the wiring is frayed, that’s a defect.

One of the challenges you’ll face as you begin to use Lean Six Sigma is defining and measuring defects. For example, suppose you find out your customers want courteous service. How would you determine whether or not they got it? The thing to keep in mind is what aspects of your product or service are most important to your customers. Then find ways to determine whether or not you’ve met those needs. If you don’t, your process is probably producing defects.

What’s also important in Lean Six Sigma is checking on the consistency in your products, services, and processes. How likely is it that customers will consistently get something they’re happy with? If you deliver what they want one day, but not the next day, they may take their business elsewhere.

One of the critic steps for the process is :defining “customers”

Six Sigma takes a broad view of what a “customer” is. It includes the people outside your company who purchase your services and products AND the people inside your company who use the output of your work.

Even if you have little contact with external customers—people outside your company—keep in mind that they are the ultimately judges of your company’s products or services. They’re the ones who determine whether your company will be profitable.

So even if you’re assigned to improve processes just in your own work area, ask the question “Would doing this just be nice for us, or would it ultimately help our paying customers?”

By Tom Smith
Article Source: http://www.articlesbase.com/strategic-planning-articles/the-goal-of-lean-sigma-535522.html

What is Lean Six Sigma?

Detailed Roadmap to Process Improvement

Lean Six Sigma utilizes DMAIC, a highly structured and standardized approach to process improvement. This approach paves the way for corporations in today’s competitive business environment to meet and exceed ever-increasing customer expectations.

DMAIC is an acronym for five interconnected phases: Define, Measure, Analyze, Improve, and Control. The use of these five phases ensures that Lean Six Sigma projects are clearly defined and implemented, and that results are standardized into daily operations
Proven tool that people can use to improve their jobs

Numerous qualitative and quantitative tools have been developed, which have proven to be effective within virtually any business environment. These tools compose the underlying structure of Lean Six Sigma and have been adopted into the daily working practices of many leading companies. Among the more common of the tools are the following:

Breakthrough contributor to the financial bottom line

The Lean Six Sigma improvement process is based on financially prioritizing projects. This prioritization is based on the projects impact to net savings and customer satisfaction.

A financial analyst provides business team support to establish the forecasted value of the project; and will also work with the Lean Six Sigma Black Belt or Green Belt to validate the financial success of the project upon completion.

An excellent starting point for any lean six sigma is 5S. 5S is valuable for organization and cleaning which in turn creates an environment that is helpful to the other areas of lean six sigma.

5S overview

Sort: Eliminate whatever is not needed.

Straighten: Organize whatever remains.

Shine: Clean the work area.

Standardize: Schedule regular cleaning and maintenance.

Sustain: Make 5S a way of life.

Other areas of of lean six sigma include:

Cause & Effect Diagrams

Value Stream Maps

Design of Experiments

Control Charts

Power by Tim Grimsley