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Transforming businesses from good to great ! Dr. Shruti Bhat's Article Published in Express Pharma5/15/2016
Dr. Shruti Bhat's article on page 37, published in GMP and Quality, special issue of Express Pharma, SE Asia's #1 Trade magazine.
While the name implies that Lean Six Sigma incorporates Six Sigma, and rightly so, there are some differences between the two. They are both methods in which a company can improve whilst improving efficiency and lowering overall costs in the long run. They both aim to get rid of unnecessary stages or materials in order to benefit the company, though Six Sigma is more focused on improving the overall quality. The goals of both can be slightly different and are explained below in order to help you understand which could be better for your company. Six Sigma uses a method known as DMAIC, which stands for Determine, Measure, Analyze, Implement and Control. Lean Six Sigma is more focused on observation in order to make decisions that can benefit the company’s productivity. It is more focused on shorter cycles that show where the benefits and errors lie through experimentation and observation.
This allows for small changes to be made as they recognized, whereas Six Sigma is more of an overall assessment. Six Sigma is typically used for a serious problem that requires much attention to detail in order to come with a quick solution, however Lean Six Sigma is implemented as a long-lasting solution to improve the organization of a company. Lean Six Sigma requires the whole company to learn and implement the changes, whereas Six Sigma tends to just use teams instead. This is often more desirable for a large company that does not want to train all its employees but it can cause miscommunication, misunderstandings and feelings of separation. Lean Six Sigma requires each individual in a company to learn and develop skills that help the company lower waste and improve productivity. Smaller companies will have a harder time using Six Sigma than Lean Six Sigma, since it requires much planning, analyzing and training in order to get the desired results. Small companies do not have the manpower to function without key members of the time, whereas larger companies can spare individuals from each department. Though some smaller companies choose to train and develop in increments at a time and put them together in the end, instead of fully engaging in a Six Sigma at one time. It is necessary to have at least a single employee to undergo Six Sigma or Lean Six Sigma at any time in order to provide training to the other employees. Read more about how Lean Six Sigma methodology can help your organization in my book ‘Revolutionizing Industries with Lean Six Sigma’. You may check it out here. Many companies find it beneficial to hire outside help in order to train staff without disrupting day to day operations. Related reading:
Follow Shruti on Twitter, YouTube, LinkedIn Categories: Process Improvement | Lean Six Sigma | Operational Excellence Keywords and Tags: #Manufacturing #SixSigma #ProcessExcellence #ContinuousImprovement #QualityImprovement #DMAIC #ManufacturingManagement #BPM #LeanSixSigma While there are a number of benefits to Lean Six Sigma methodology, there are several potential drawbacks as well. The first and foremost limitation is that it requires a large modification in the workplace. The reason that Lean Six Sigma tends to fail at times is because companies were not aware of the drastic management changes that are required to implement the methodology, which include effort and time.
It is estimated that it takes an average of two years to adjust to the changes that Lean Six Sigma requires. If there is not enough time or effort giving to implementing Lean Six Sigma then its chances of failure increase significantly. Another contradictory aspect is that Lean Six Sigma is meant to save money. While this is true, many companies feel the need to pay for additional resources or external help, such as consultants, which can end up costing the company more at first. Since the focus of Lean Six Sigma is largely focused on the customer, sometimes the process of initiating the methodology can leave employees feeling stifled and inadequate (though this typically happens whilst the process is being set up and has its benefits later down the line). Customer satisfaction is one of the primary goals of Lean Six Sigma and other aspects are sometimes put on the back burner until issues surrounding customer satisfaction have been resolved. Large businesses have a better chance of success when it comes to Lean Six Sigma than smaller businesses do. This is due to the fact that employees are required to receive accreditation in Six Sigma in order to go along with the changes and to be an asset to the company. Some companies choose to forgo employee certification due to the costs but still end up spending a lot of time and money with training, despite it taking place in the workplace. The reason that education is essential is because there are many stages to understanding how the methodology works and to know how to use it to enhance the business. During the time that employees are being trained for Lean Six Sigma, whether at another institute or in the workplace, there will be lack of productivity in terms of work. Many employees can find it frustrating and confusing to understand the stages of Lean Six Sigma, which can lower self-esteem and even cause some to leave the job entirely. It is a process that requires a lot of foresight because the results are far from immediate. Read more about how Lean Six Sigma methodology can help your organization in my book ‘Revolutionizing Industries with Lean Six Sigma’. You may check it out here. Related reading:
Follow Shruti on Twitter, YouTube, LinkedIn Categories: Process Improvement | Lean Six Sigma | Operational Excellence Keywords and Tags: #Manufacturing #SixSigma #ProcessExcellence #OperationalExcellence #ContinuousImprovement #QualityImprovement #BPM #BusinessProcessManagement #LeanSixSigma The methodology of Lean Six Sigma is the combination the principles of Six Sigma and another process improvement technique referred to as 'Lean'. It is used to optimize the operations of a company whilst lowering waste and increasing overall value. Although Lean Six Sigma techniques has traditionally been used in manufacturing set-ups, it is very popular even in service industries because of the immense benefit it offers. Some of the promising benefits of using Lean Six Sigma methodology are-
Lowered costs are a large reason that Lean Six Sigma is a preferred method for companies. By improving the procedures and analyzing their effectiveness, companies are able to lower overall costs, whilst lowering the number of errors, defects and ineffective materials used as well. Analyzing the stages is an important factor in Lean Six Sigma and it helps to figure out what steps are not necessary to the company. This often results in better value to the customer and less maintenance costs. Customers are a strong focus point and a key element for most companies. It is important to satisfy the customer and to reach their requirements in order to give them the best product or service possible. It is essential to have high-quality products available to the customers as well as improve the methods of other customer related issues such as service and delivery. Companies know that a happy customer is the best kind of customer because they will keep using the company and also suggest it to their friends. All these factors make customer satisfaction a vital part of any business’ success. Employee involvement is also essential to any company, for a company cannot function well if the employees are not fully involved or engaged in the process. Lean Six Sigma aims to motivate employees by providing them with enough participation and encouragement. They are a key part to customer satisfaction and to increasing the processes along the way. Employees strive to have a big impact on the company and have been found to perform much better when they are a part of the bigger picture. Raised self-esteem and knowledge of importance in the company can have a dramatically positive effect on the entire company. Another reason that Lean Six Sigma is well regarded is because it shows that the product and the company are of high quality. A unique aspect of Lean Six Sigma is that it increases, or maintains, the quality of the quality whilst improving the efficiency as well, which is done through various stages of the methodology. Companies that implement Lean Six Sigma methodology lower their costs, increase performances and have a better end result. Read more about how Lean Six Sigma methodology can help your organization in my book ‘Revolutionizing Industries with Lean Six Sigma’. You may check it out here. Related reading:
Follow Shruti on Twitter, YouTube, LinkedIn Categories: Quality Management| Lean Six Sigma | Operational Excellence Keywords and Tags: #Manufacturing #LeanSixSigma #ProcessExcellence #ContinuousImprovement #BPM #QualityImprovement #Quality #BusinessProcessManagement #ServiceIndustry #ManufacturingManagement #Lean #SixSigma #OperationalExcellence The methodology known as Lean Six Sigma is basically a business’ method of improving quality and speed. It is a combination of 'Lean' and 'Six sigma'. It is the process of lowering waste in order to improve profit and lower costs.
Successful implementation results in elimination of 7 types of wastes (classified as- Transportation, Inventory, Motion, Waiting, Overproduction, Over-Processing, and Defects) and produces goods and services with rates of 3.4 defects per million opportunities. Further, this process involves enhancing production flow rate and ability to serve customers. The idea behind Six Sigma is to pinpoint processes or materials in a company that are deemed ineffective and useless, otherwise a waste of money. It aims to perfect the final product by eliminating unnecessary stages and producing a high quality product to begin with. The main idea that serves Lean Six Sigma is the same as the principles of Six Sigma methodology, which his DMAIC. These acronyms stand for Define, Measure, Analyze, Improve and Control. This means that the business strives to find the problem, develops a better understanding and come with a tool for measuring its effectiveness, monitoring the entire process by performing experiments, enhancing the process based on the results of the experiments and regulating the methods in order to provide continuous development. The reason that “Lean” comes into play with Six Sigma methodology is that it implements the enhancement of the process and uses it as a tool for constant improvement. It is less likely that the business will fall back into its old ways when using Lean Six Sigma methodology. It works flawlessly with Six Sigma because it uses all the same principles yet enhances their effectiveness. The lean principles that are added to Six Sigma are focused on the process of manufacturing. Some universities and courses are set up to teach specific Lean Six Sigma principles. It is known that companies like to show that they have been involved in the Lean Six Sigma process because this shows that the company has a certain level of quality. Many employees choose to gain certification in Lean Six Sigma in order to increase their value to a company. Individuals with this accreditation know how to lower errors and enhance productivity. It is an even more powerful method in combination because it gives a company the ability to produce products that are of the best quality and at a fraction of the original speed it took. Lean Six Sigma focuses largely on the customer and their satisfaction, knows how to find solutions, maximizes efficiency, produces a smooth process, eliminates unnecessary materials or stages, controls the product better and improves activities in a manageable way. The customer is the most important factor in the entire operation and Lean Six Sigma is fully aware of that. Read more about how Lean Six Sigma methodology can help your organization in my book ‘Revolutionizing Industries with Lean Six Sigma’. You may check it out here. Related reading:
Follow Shruti on Twitter, YouTube, LinkedIn Categories: Quality Management| Lean Six Sigma | Operational Excellence Keywords and Tags: #Manufacturing #SixSigma #ProcessExcellence #ContinuousImprovement #BPM #QualityImprovement #Lean #BusinessProcessManagement #ManufacturingManagement #LeanSixSigma #OperationalExcellence |
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