If you are starting a new business with Six Sigma, effective fund management could mean the difference between success and failure. Therefore applying any process improvement methodologies – like the well known and widely used Lean Six Sigma – can help even entrepreneurs and small start-ups.
Lean Six Sigma is a managerial concept combining Lean and Six Sigma that results in the elimination of the eight kinds of wastes / muda (classified as Defects, Overproduction, Waiting, Non-Utilized Talent, Transportation, Inventory, Motion, Extra-Processing) and an improved capability of performance.
Lean manufacturing, lean enterprise, or lean production, often simply, “lean”, is a production practice that considers the expenditure of resources for any goal other than the creation of value for the end customer to be wasteful, and thus a target for elimination. Working from the perspective of the customer who consumes a product or service, “value” is defined as any action or process that a customer would be willing to pay for.
As business analyst I can recommend any new businessperson to learn about Six Sigma. It will help you constantly focus on your main goal: your profits. Six Sigma keeps you on course.
Bringing in a Lean Six Sigma consultant can help companies carry out the DMAIC process in a way that maximizes their returns. The DMAIC approach is made up of five steps – defining important metrics, measuring historical performance, analyzing the best ways to augment the current system, improving processes and controlling future output by establishing a culture of continuous improvement.
DMAIC originated in the manufacturing industry, but has since been used with great success in a number of other sectors, ranging from healthcare to retail. The DMAIC problem solving method that is a roadmap that can be used for any projects or quality improvements that needs to be made.
Define – The more specific the problem is defined the greater the chance of obtaining measurements and then successfully completing the project or solving the problem.
Measure – When the project or problem has been defined then there needs to be decisions made on additional measurement that is required to quantify the problem.
Analyze – It’s not enough, however, simply to collect data. You must analyze the data using powerful mathematics and statistical tools. When you employ those tools properly, you get a clear picture of the variation in your process — and how to limit it.
Improve – Teams look to identify possible solutions. Solutions must be tested to see how they interact with other input variables. Ultimately, the team chooses the best solutions for implementation.
Control – To make sure a solution can be sustained over the long term, control planning is required. Control planning involves collecting quality control data and verifying measurements according to a regular schedule. This ensures that processes continue to run efficiently and deliver peak performance.