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| Lean and Lean Sigma >> |
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| Lean Sigma |
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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!
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. |
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| Benefits of Implementation |
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| Depending on the industry type, an average company can expect the following benefits: |
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gains of USD 20,000 to 100,000 from each completed improvement project |
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reduction in reject rates by 50 to 70% |
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reduction in production lead-time by 20 to 70% |
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reduction in inventory levels by 20 to 70% |
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reduction in inventory costs by 30 to 70% |
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reduction in space usage by 10 to 70% |
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increase in process capabilities (Cpk) to 1.3 or higher |
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increase in on-time-delivery (OTD) by more than 95% |
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increase in capacity by 10 to 70% |
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increase in equipment uptime to 90 to 95% |
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increase in operating margins by approximately 40% |
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| Lean |
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| Lean is a way of working that enables organizations to use optimal resources to achieve maximum output. Sounds like an oxymoron? Yes! Nonetheless, Lean is indeed the answer to organizations looking for the means to DO MORE with LESS! How is this possible?
Lean is an organisational-wide strategy that is focused on the relentless elimination of unnecessary, non-value-added activities ie WASTES. Any activity or process that consumes resources, adds cost or time without creating value presents an opportunity for improvement. The outcome of implementing Lean is an organisation that is nimble, competitive, flexible and responsive to market demands and needs.
The benefits of Lean deployment are: greater customer satisfaction in terms of shortened delivery or lead time, increased capacity, and cost reduction.
Although the Lean concept has its origins at Toyota ; the Lean management principles and approaches are relevant to both manufacturing and service organisations. The difference lies in the tools that are used for analyzing and improving processes; with some tools generally more suitable for manufacturing processes and some others more suited for services.
Today, Lean is widely applied in manufacturing, as well as hospitals, logistics, travel, financial and government services the world over. If your organisation would like to dramatically improve your bottom-line through improving efficiency and speed to market, Lean is your answer! |
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Benefits of Implementation |
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| Depending on the industry type, an average company can expect the following benefits: |
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production lead time reduced by 20 to 70% |
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inventory levels reduced by 20 to 70% |
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inventory costs reduced by 30 to 70% |
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productivity increased by 2 to 3 fold |
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space utilization reduced by 10 to 70% |
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on time delivery improved to more than 95% |
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capacity increased by 10 to 70% |
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equipment uptime enhanced to 90 to 95% |
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employee morale improved and attrition decreased |
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