Operational Excellence
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Operational Excellence

Lean Sigma

Introduction

Lean Sigma is the integration of two widely used business improvement approaches - Lean and Six Sigma. Each of the approach by itself has its own merits and focus. However, when integrated together, Lean Sigma offers the organization a wealth of tools and techniques to resolve issues that they may not have been able to overcome through the singular use of Lean or Six Sigma. Imagine the business opportunities when one is able to fulfill clients’ delivery and quality needs whilst keeping costs down! This is the power of Lean Sigma! 'Harness the best of
Lean and Six Sigma in
a single, coordinated
initiative with
Lean Sigma'

Both Lean and Six Sigma are widely recognized as sound management principles with proven methodologies and tools to achieve financial gains. Where they differ is their focus. Lean tools are effective in improving efficiency and speed to market by its focus on the process flow and pull, while Six Sigma tools are more suited for reducing defects and errors through controlling process variation. They are both complementary and with Lean Sigma, one gets to harness the best of Lean and Six Sigma in a single, coordinated initiative.

Lean Sigma has been successfully implemented in both manufacturing as well as service organisations, from aeronautical, to health care, financial, tele-communication and information technology.

With Lean Sigma, one gains the potent synergy of the best of Lean and Six Sigma in a single, coordinated initiative. With Lean Sigma, one can accelerate one’s aspirations to achieve business excellence in Quality, Cost and Delivery, with dramatic results to the organisation’s bottom line.

Benefits of Implementation

Depending on the industry type, an average company can expect the following benefits:

  • gains of USD 20,000 to 100,000 from each completed improvement project
  • reduction in reject rates by 50 to 70%
  • reduction in production lead-time by 20 to 70%
  • reduction in inventory levels by 20 to 70%
  • reduction in inventory costs by 30 to 70%
  • reduction in space usage by 10 to 70%
  • increase in process capabilities (Cpk) to 1.3 or higher
  • increase in on-time-delivery (OTD) by more than 95%
  • increase in capacity by 10 to 70%
  • increase in equipment uptime to 90 to 95%
  • increase in operating margins by approximately 40%

An organization can expect even more spectacular gains as it improves.