SIX SIGMA
WHAT IS SIX SIGMA?
Six Sigma is a fact-based data driven structured methodology that is used to create breakthrough improvements in business processes with a strong focus on customer needs. It is used to solve tough business problems when the root cause of the problem or the solution is not known.
What is Lean?
Lean is a philosophy that looks at constant elimination of wastes within a company to make all tasks or activities value adding from the customer’s point of view. Lean is also about flow and velocity. A lean enterprise is one in which the work flows rapidly from the suppliers all the way to the customers without getting stuck anywhere in the company.
Why do we need Six Sigma?
Six Sigma is the most powerful methodology that is currently available to attack and eliminate “pain” areas within a company. A company that gets rid of its persistent problems provides the best value at the lowest cost to its customers, thus providing a tremendous advantage over its competitors. In today’s business climate, as more and more companies practise Six Sigma, it has become imperative for all companies to practise Six Sigma in order just to stay in business.
Why do we need Lean?
Lean is a powerful philosophy that enables the enterprise to leverage the knowledge and skills of its workforce to attack all forms of waste across the company’s supply chain. Lean is usually deployed throughout the entire organization making this initiative an enabler for changing the culture in an organization. A Lean enterprise is highly responsive to customer needs. Similar to Six Sigma, it provides a company with tremendous advantages. To stay competitive in today’s environment, it is imperative for all companies to practise Lean.
Examples of companies that have deployed Six Sigma
The number of companies that have deployed Six Sigma runs into the thousands. Six Sigma has been deployed in all types of industries including manufacturing, IT, ITES, services, healthcare, design, BPO etc. Some example companies that have realized huge benefits are GE, Motorola, Caterpillar, Microsoft, Ford, Wipro, HP etc.
Examples of companies that have deployed Lean
Large number of companies have deployed Lean with the pioneer being Toyota. Lean has been deployed in all types of industries including manufacturing, IT, ITES, services, healthcare, design, BPO etc. Few companies that have realized huge benefits are Toyota, GE, Caterpillar, Satyam, GM etc.
Why have some companies struggled with Six Sigma deployments?
When though the tool kit and methodology to solve problems is the best that is available, the success that companies experience depends on how Six Sigma is deployed within a company. There are several crucial enablers that need to be in place for a company to reap the benefits of Six Sigma – example, the support and buy-in from the senior management within a company. The utilization of a neutral third party to review the deployment and provide recommendations to improve the program become important especially if your Six Sigma program has recently not performed as expected.
What situations warrant initiation of Six Sigma and/or Lean?
You don’t want to be left behind on the learning curve.