Sunday, December 27, 2009

An Introduction to Lean Six Sigma

Most executives intuitively know that some (if not many) of their service processes are inefficient.  Yet, service process improvements are a barely touched frontier in the relentless corporate drive to lower costs and improve quality. One reason for this is the lack of objective process controls such as those developed for manufacturing over the last 50 years.

Everyone knows the prime directive of business: faster, better, cheaper.  Of course, the directive applies to service processes as well. Yet, when pressed for an explanation most can say only that it means the most work in the least time with the fewest people and fewest mistakes. 

What are the roadblocks to achieving the prime directive in services?

Responses to that question are varied but predictable: We need more people. The computer systems are lousy. The customer’s demands are excessive, etc.

If our experiences in manufacturing tell us anything, it is that objective measurements and controlled improvements create a finely tuned process with the fewest non-value-added steps.

And here’s the news: a new method, Lean Six Sigma for Services, is moving into the forefront to provide just that.

Like its industrial-strength manufacturing counterpart, Lean Six Sigma for Services uses objective, repeatable data to identify waste and complexity thus removing subjectivity from the equation.

Yet, mention “Lean Six Sigma for Services” and the response is likely a blank stare followed by a few quick responses: “Isn’t that used in manufacturing or TQM?”  “Don’t see how it applies to a service business.”  Or, worse, out pops the inevitable horror story: “I know a guy that spent a million dollars on Full Factorial Experiments. What is a Full Factorial Experiment?”

I have created an Introduction to Lean Six Sigma for Services.  This paper helps decision makers seeking a methodology best suited for service process improvement.  It is a compendium of experience, personal notes and the readings of noted authors (described in the reference section).  Inside you will find a description of Lean Six Sigma for Services – in general terms – along with a survey of the benefits, characteristics, approach, and tools.   

I hope that the information herein will clear up some of the mysteries and misconceptions surrounding this excellent approach.

Regards,

Jim Pickens


Jim Pickens is the the managing partner for DMAIC.com. http://www.dmaic.com is the complete online resource for Six Sigma consulting, training, software, books, and events.

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