Lean Six Sigma, Professional Training

Efficiency is the key to organisational success – and in large organisations, it can become increasingly difficult to maintain efficient processes on a wideranging and often international scale. However, the process of streamlining and enhancing processes is eminently achievable when lean six sigma is employed; moreover, lean six sigma generates measurable results which can be quantified in terms of bottom-line performance and profitability.

Service or Back Office Operations face similar productivity challenges to the manufacturing or engineering functions of a company. Where do the costs lie? If your business uses rare earth metals to develop and produce high value aerospace components then, perhaps, the costs are obvious. The labour cost of production being a comparatively small component of the total cost. In service operations the opposite is true, the cost to produce an invoice or management report is within the labour element, not the materials; the invoice or report itself being a relatively inexpensive product. Thus, service operations need to increase their efficiency and productivity just as much as their manufacturing counterparts. Given the advances in technology, it is now far easier to automate manual processes than ever before, thus productivity within the back office can often increase without expensive capital cost.

In contrast to the finance driven, shareholder-first business model Lean fundamentally changes business thinking. Thus, creating a ‘Lean Culture’, involves much more than tactical improvements to business processes. The organisation needs to understand and accept the need for change, they must then have the capability to deliver change, coupled with leadership to enable change.

How would you recognise a lean company, how would it differ from any other organisation? What behaviours do lean leaders’ exhibit and how do they create value? Leader Standard Work (LSW) is the ‘Engine Room’ of lean management, it provides a structure and routine that helps leaders shift from a focus on results to a dual focus on process and results. This case study shows how the leadership team from one organisation sought to critically review their activity to ensure they were always adding value.

Plant floor design is key to the creation of an efficient production environment; however, when businesses lay out a new plant, change the layout of an existing facility or add a new assembly line, many enterprises underestimate how many factors they need to consider. Organisations tend to be dictated by equipment or material flow, instead of designing facilities around their customer expectations and taking heed of lean principles, such as 5S, Visual Management, Kaizen and Kan-Ban. This case study focuses on how workstations, parts bins and equipment should be arranged to optimise flow, minimise waste and boost productivity.

The primary function of a business is to exchange goods and services for money in order to generate profit.

Within this process, the two main cost areas stem from both raw materials and labour. Through price negotiations, a business can reduce raw material costs (along with overheads) where possible, but since every employee represents a substantial amount of money, labour also needs to be minimised if overall costs are to be minimised.

So, how many people should you employ? And with what skills? The following case study demonstrates how applying Lean can answer these questions.