That is, unless you are one of those smart companies that focus its scarce resource son eliminating process variation and reducing cycle time to increase productivity—much the way leading manufacturing companies have done over several decades.
Companies are facing rapidly changing customer expectations, escalating costs and emerging new markets, which are all impacting process efficiency. Most often, the processes designed to deliver services operate far less efficiently than those used to produce goods. In working with thousands of service-oriented organizations across more than 20 different industries, Accenture has seen tremendous value when a Lean Six Sigma programs aligned to the appropriate industry model.
To understand Lean Six Sigma you need to start with its roots: Six Sigma and Lean Manufacturing. Six Sigma uses data to drive a disciplined approach, proven to eliminate defects directly linked to bottom line results. Lean Manufacturing utilizes simple tools and techniques to elimination-value added steps and accelerate cycle time. The most successful organizations have combined both philosophies into "Lean Six Sigma", powerful force in eliminating waste worth billions of dollars. Lean Six Sigma uses a set of tools, disciplines and beliefs which operate among robust framework based in other industry models.
With profitability on the line, many organizations are seeking to adopt Lean Six Sigma practices which have led to a complete revitalization of pioneering organizations such as General Electric, Motorola, Allied Signal and Sun Microsystems. Organizations may start by establishing fundamental set of disciplined processes based on industry standards, such as IT Infrastructure Library (ITIL®), the sourcing Capability Model for Service Providers (scum-SP) or Clients (scum-CL),the Capability Maturity Model Integration(CMMI®), or ISO® 9000. Once an underlying framework is established, organizations can begin eliminating waste from the process. Initially, a Lean Assessment will determine if a process should be improved via DMAIC (D-fine, M-easure,A-analyze, I-improve, C-control), Lean or a combination of both. If the process capability is poor, DMAIC, a method for improving on a known defect, may be used to find the root cause and shift mean performance. If the process capability is relatively strong, Value Stream Mapping and other Lean techniques can be utilized to quickly stretch the process, eliminating non-value steps and accelerating cycle time. Often a combination of both is used to achieve rapid and cost efficient improvement.
A successful Lean Six Sigma program will include many components. Of central importance are the roles of Master Black Belt, Black Belt, and Greenbelt. While Master Black Belts typically coach projects, Black Belts and Greenbelts will lead projects ranging from Kaizen workshops to extended DMAIC projects intended to deliver $250K in value and Design for Six Sigma (DFSS)projects intended to develop new solutions aligned to Critical Customer Requirements.
Other key factors for success include:
- Organizational elements such as champions and sponsors.
- Career and development incentives.
- Advanced statistical analysis capabilities, tools and mindset.
- Infusion of behavior into every employee’s job responsibilities.
- Project identification channels.
- Structured gate/review process.
Lean Six Sigma Pitfalls
Organizations will often have trouble achieving and subsequently sustaining significant benefits if they fail to address common pitfalls.
Project Alignment
When launching a Lean Six Sigma project, organizations must address problems based on facts (not emotions)which are aligned to business objectives. Prioritization of projects should factor both alignment and the magnitude of the opportunity.