QLI

 

Variation (Sigma) and Non-Value Added Steps (Lean)

 

Changing the way things are done in order to meet customer demands and increase profitability has become one of the foremost business issues of our day. Unfortunately, this quest has been met with varying degrees of success and a graveyard filled with “programs of the month.”

Competition in business is stronger than ever. As a result, the necessity to improve has never been more critical.

Many organizations are implementing changes through a strategy of process management.  The results are improved customer satisfaction, growth, profitability, and identification of new business opportunities.

The process management approach has been referred to as Six Sigma, Total Quality Management, Lean, etc. We prefer not to name it, but help define and implement what would work on an individual basis.
 

What’s In a Name?

History tells us that giving a common name to a strategy not only trivializes it, but also puts it in the category of what others are doing. Our experience is that every organization is different and what has worked for Motorola or GE may or may not work for your organization. There are differences in needs, culture, and market dynamics. However, what is certain is that standing still is not an option.

Our belief is that tools are only a means to an end - not the end itself. Therefore, we focus upon what an organization is trying to accomplish and then implement the simplest approach possible to get there.

Our success creates an integrated systems approach, rather than simply working with a tool kit.


Which Tool Kit To Use

Improving business processes can take one of two tracks: 1. Root Cause Analysis to eliminate variation, or 2. Cycle Time Reduction to eliminate non-value added steps. Because the problems are different, the tools and approach need to be different.

Common to both approaches is that the people are trained, using the appropriate tools, to improve their processes. This brings learning into the organization, establishing strong buy-in which makes the gains sustainable. Under our approach, people skills and understanding team dynamics are crucial to long-term success. This unique approach accounts for the high success rate of this integrated system approach.

 Impact:

By reducing variations in a process, an organization is able to prevent problems from happening by building quality in rather than inspecting defects. The level of improvement can be measured by:

• “Sigma” (defects per million)
• Time
•  Cost
•  ROI
• Customer satisfaction
• Other measurements that may be specific to your market or industry

One certainty, however, is that both literature and our experience indicate that when properly implemented and for the right reasons, there is no down side to this approach. In fact, process management becomes an investment rather than an expense.

Implementation:

Implementation will vary based upon your organization’s specific needs, so a tailored approach makes the most sense. We could begin by conducting a 2-day executive seminar, or go directly into team implementation.

Time:

Speed is critical, so we view the teams as “Rapid Deployment Teams.” They are assigned a process, conduct an analysis to discover “root causes” of a problem, design fixes, make recommendations, and then implement the final decision.

When addressing a Cycle Time Reduction problem, the team will complete their analysis and make their recommendations in one week. Process variation teams may take a little longer, however speed is of the essence.

Results:

When properly implemented, the results are extraordinary. Success is measured financially and by customer and employee satisfaction. So if you are beginning a journey, or are looking to enhance previous efforts, we can help.