A Quickstart Beginner’s Guide to Lean Six Sigma
Learn to involve everyone in the organization’s processes. Six Sigma is one of the best ways to cut cost. The Six Sigma certificate is very valuable indeed. This is about finding confidence in your business and learning how to streamline processes. Six Sigma can also be applied in the government setting. Learn to adopt a six sigma approach. Your business’ performance should improve as a result.
What exactly is Lean Six Sigma? Six Sigma is focused on minimizing waste. It also about reducing poor performance and monitoring processes to know how well you are doing. It is simple and it is about consistent delivery to the customer. Your performance should be measured well. You want to achieve your intended specifications. Your actual results must be as close to your planned ones as possible. Learn to align projects with your strategic objectives and be able to assess them. You want every input to drive revenue creation. There should be no bottlenecks or downtime. It is about clearing everything that slows you down. Look out for 1) downtime. The projects should be clear and every employee’s efforts should be measured so that they fall in line with organization’s objectives. It will keep employees on their toes.
How Lean Six Sigma Works on a Daily Basis. You must aim for 100% quality. We all want as much profit as we can make. Motorola used Six Sigma back in 1986. Both quality, quantity and speed of production are the key. You should avoid any wastage that leads to poor workmanship. Please avoid overproduction. Low consumption is a bad sign. Time is money. Any time that your employees are not working or slacking is a loss to the company. Utilize your talents and make them multi-task even if necessary. There must be no wastage in transportation. Inventory storage cost must be factored in. Just-in-time inventory is the best. The key is that inventory must be processed once it arrives and without any undue delay. Do not over-process as it is time consuming and eats into your profits.
The fact is that you are just wasting time walking here, there and everywhere; in the process, you are adversely influencing other people towards your bandwagon. That is why you need to minimize aimless movements during working time. You need to appreciate that idle movements do not constitute leisure. Scheduled leisure time is helpful but idling about is not. – G Harver
Beneficiaries of Lean Six Sigma. Employees will feel challenged and drive in the same direction as the company. Motivated and healthier employees rarely take leave or absent themselves. Technology can help to improve efficiency and productivity. Time taken to attract customers is reduced. It is an efficient tool throughout the industry. People who are skilled in Six Sigma are employable and can work as consultants in a big company. For example, you could work as a lead manufacturing engineer. You can work as a business process analyst etc. There are many roles in an organization that seeks to improve company performance.
Salaries Associated with Lean Six Sigma. The roles are unique and command good salaries. A Green Belt certification will boost your credentials. Lean Six Sigma trainers earn even more. You can consult for IT companies, F&B companies etc. The master black belts are the best paid. Try to get the company to sponsor you for your training.
Things for CEO to note in readiness to implement Lean Six Sigma. Do not wait till you are making losses before implementing six sigma. Make improvements that will get you to 100% perfection. It is a structured approach. Decisions are based on accurate data. Success is based on a small margin of error. It is highly dependent on accurate data. It is important to have strict discipline when implementing six sigma. Analyzing data and looking at it from the right perspective is the most important thing you can do. Learn to take each project one at a time. Embrace solutions only when there is conclusive evidence that it will work. You need everyone on-board if you want to implement Six Sigma effectively. Senior Management must also be kept in the loop and updated. Empower people to carry out new initiatives even if it means eliminating paperwork. Bring an expert who can conduct training for your staff. Always be receptive to feedback.
Tying Lean to Six Sigma Method for Best Performance. Lean means travelling light. You must deliver your product or services fast. Delivery must be of high quality too. The cycle should be fast. There may be internal problems in your team that affect delivery, such as low morale, work too complex, multi-tasking, correcting of product defects, lack of flexibility, inefficient systems etc. How do you overcome the above? Understand your customers’ demands. Reduce number of tasks people do at the same time. Work towards smaller deliveries rather than a huge one. Develop a routine and expectations with your customer. Take orders only if you have the capacity to fulfil them.
Actual 6 Sigma Gauge. Some form of normal loss in the manufacturing process should be expected and this can be predicted at the start. This is pre-determined. Sigma Level 6 has a success rate of 99.99966%. The more you succeed, the higher you fair on the sigma scale. There are 6 sigma scales and each documents the defect level per 1 million units produced. Your ultimate business goal should be to reach only 3.4 defects in every 1 million units produced. This is known as the 6 sigma level.
Effective application of lean six sigma, including in profession. View your profession as a business. Serving your auditee fast means saving your organization’s time. Learn to offer high quality services. Learn to create projects that are well defined. Every move your organization takes has an impact on the bottom line. Train key personnel. Use DMAIC – Define, Measure, Analyze, Improve and Control. Define the problem. Use only individuals who are compatible. Set working parameters. Overhaul your processes if there is fraud present in your organization. Have an effective plan for data collection and system analysis. Analyze the problem. The next step is to improve the situation. Propose a solution and execute a plan. Your solution must have a clear cost-benefit analysis. Present your plan to the stakeholders of the project. Learn to control the situation. Communicate both your goals and achievements to your stakeholders and get their buy-in.
Lean 6 Sigma in Government Operations. Wastage is bad for the government and it can bring the house down. Governments can consider VSM (Value Stream Mapping). To do a VSM, present both alternatives and show both mappings. Show 1 for the current process and the other for the new process. In Kaizen, the changes are incremental in nature. There is a lot of red tape in government and should be addressed through kaizen improvement.
Challenges to Anticipate in Lean Six Sigma Implementation. Identification the correct process owner is the most important thing. However, some of them may not be very enthusiastic. Some of the departments may not be working well with one another. You might encounter barriers in language. You must obtain management buy-in. The trick is to display any small wins quickly so as to show others that the project is working well. Develop rapport with everyone concerned. Learn to resolve issues quickly together. Have charts to indicate progress. Ensure that you have a project implementing team.
Why adopt the Lean 6 Sigma Style? A black belt certification means that you are highly valued. There is even a body called International Association for Six Sigma Certification. Six Sigma is about enhancing efficiency, reducing waste and leading to an increase in revenue.
Lean 6 Sigma for SMEs. Downtime is not good for any organization, even SMEs. Many SMEs are at level 3 or 4 currently. This is eating into their revenues. You want to spend as little time as possible fighting fires. Small organizations are more nimble and can implement 6 sigma more easily.
How to embark on implementing lean six sigma. You need to identify a project champion. You need this person to be involved as soon as possible. Gauge your project against your organization’s strategic objectives. The project champion is concerned with the big picture.
Yellow and Green Belt Certification in Lean Six Sigma Training. There are yellow, green and black belts available. The yellow belt training takes 2 days. It will teach you how to calculate the sigma level, defects per million units of output, yield. The green belt requires takes 8 days.
Black Belt Level of Certification within Lean Six Sigma. The Black Belt training also takes 8 days. You will need green belt before you can take the black belt. This level involves statistical analysis. You will understand how to perform sampling. You will be able to compute metrics and control charts. You will be able to handle regression etc. There is also a master black belt certification which is available for use. The MBB exam is over 2.5 hours long.
How does 6 Sigma Compare to Total Quality Management. TQM improvement is on a gradual basis. It involves more statistics and not so much on behavioural change. Six Sigma is not about ruthless cost cutting.
Details of Waste Eliminated by Lean 6 Sigma. Cutting waste in the transport area is important. Do not store unnecessary inventory as it is heavy. Unnecessary non-value adding work is also a waste of time. Excessive waiting time should be eliminated. Overproduction is bad. Underutilizing skills and defects are also undesirable and are a type of waste.
Lean and 6 Sigma above quality assurance. Quality assurance is good and system is important. Get rid of business steps which are redundant.
Why Companies Are not Taking Advantage of Lean Six Sigma. Six Sigma is one of the best ways to cut costs. The key benefits are 1) improving quality of products/services; 2) improving customer experience; 3) Increasing bottom line. Sometimes, there a lack of information hindering companies from applying 6 sigma. Some people believe it is a fad. There are also costs associated with 6 sigma implementation. Some people feel their business is too small for 6 sigma to be effective. A group of people might feel it is too mathematical.