Lean Six Sigma has the potential to rapidly increase the intrinsic value of the company in less than one year, but this must be based on the success criteria determined by Lean Six Sigma:
(1)① participation of CEO and senior management;
② 1%-3% full-time staff are committed to improving the project;
(3) The framework of project classification, approval and plan tracking;
④ Pay attention to the return rate of lean six sigma investment.
The reason for the failure is just the opposite:
(1) ①CEO and senior management personnel do not participate;
② The required manpower is1%of part-time or obviously lower than that of full-time staff;
(3) The black belt is lax, and there is no training or grading for the project;
④ There is no framework for managing and tracking the project according to the plan;
⑤ Pay too much attention to the cost of the process, not the return or ROICO.
Second, the use of lean six sigma to create a competitive advantage
Lean Six Sigma provides a method for CEO to create and maintain a significant competitive advantage. Practical experience shows that companies that use Lean and Six Sigma at the same time can even reduce lead time by 80%, reduce indirect manufacturing costs and quality costs by 20%, and increase the on-time delivery rate to over 99%. Applying lean in product development can reduce 50% marketing time and 5%- 10% material cost. In order to change CEO's strategy from observation to project execution and create commercial productivity that can expand the scope of strategic choice, it is necessary to develop a superior and lasting transformation tool, from which competitive advantage arises.
Therefore, the first question is "How should we integrate Lean and Six Sigma into an effective strategy in order to create shareholder value?"
Because many companies have done a lot of work. The road signs are clear. The implementation of lean six sigma includes about three main stages, and the following is an overview:
1, go
(1) Get the support of the CEO, set financial and performance targets for 2-5 years, and get the support of the profit and loss manager;
(2) Make long-term planning and build infrastructure;
(3) First, train the senior leaders inside Lean Six Sigma.
2. Select projects and resources
① Choose potential future leaders as champions and black belts;
(2) Establish the concept of project selection criteria with NPV as the champion;
(3) to provide team leadership and lean six-horse tools training for the black belt.
3. Implementation, sustainability and development
(1) Provide expert training for starting the project;
② Use DMAIC process to track the project until the final result;
③ Make Lean Six Sigma a an integral part of all the company's businesses, enhance the ability of Lean Six Sigma, and make it the focus of the company's long-term attention.
The process is based on six suitable horses, combined with lean concepts (value-based project selection, cycle time efficiency), and establishes long-term signposts. This method overcomes hesitation and creates initiative within the organization. However, the most important element is beyond the control of these two methods: the support and participation of senior management. Fortunately, because the Lean Six Sigma tool shows how potential projects generate shareholder value, it is relatively easy to involve top management in implementation.