I often hear it said that one of the goals of a business is to increase customer satisfaction (in “lean” terms we would say “Satisfy the Voice of the Customer”). I disagree with this statement. Customer satisfaction is actually only one of the means by which we increase sales and therefore revenue…towards the ultimate goal of increased profits. The primary goal of business is to increase profits ( and shareholder value ) .
Extremely valuable insights from the true Gurus and Senseis of Lean : James P. Womack and Daniel T. JonesUK Lean Summit, London, England, November 2014 “The political discourse is all about external issues to actual people creating value. It’s all outside the box. What’s inside the box, how people actually work to create value (which should be transparent, open, and understood by everyone), is for most managers still a black box. We need to light up that
I recently found the best worded explanation of Hypothesis Testing, Confidence Intervals, Confidence Levels, Alfa level, Beta level and Power that I have every read. All credit to YALE UNIVERSITY (USA) Department of Statistics !Usually the students of Lean Six Sigma follow Power Point presentations and have a trainer to assist them through the Hypothesis Testing parts of Green Belt and Black Belt, however if you take the time to read through the following 6
As a Lean Six Sigma trainer I have been traveling around the UK all year teaching Yellow, Green and Black belt classes. I have noticed a large discrepancy in the number of people in classes from the South of England and the number from the North of England. Classes in Leeds, Newcastle and Edinburgh have been averaging at 4 students ( with standard deviation of 1 ! ) compared to classes in Birmingham, London and
A useful ( but not commonly mentioned) tool in Lean Six Sigma is called Little’s Law. Little’s Law describes the fundamental long-term relationship between Work-In-Process, throughput and flow time of a production system in a steady state: As an equation Little’s Law can be written as : Inventory =Throughput × Flow Time Little’s law is both fundamental and simple and should be understood all all practitioners of Lean Six Sigma. It is fundamental to the creation of steady
News this week from the UK government is a classic lesson in Six-Sigma. The government wants to be the first in the World to make more information about surgeon (doctor for an operation) “success rates” available to the general public in order that they can make “better decisions” about who to choose as their surgeon. The specific information they have chosen to release to the public is the number of “successful” operations. How
What are the fundamental differences between Lean Six-Sigma and other process improvement /quality improvement programs ( TQM, TQI, ISO, EFQM etc) ? Lean Six Sigma overlaps with many other quality programs in many areas however there are two keys areas in which it stands unique and alone. 1. Single Piece Flow (SPF): The restructuring of business processes to get away from the “Batch-and-Queue” system and differences in rates of production of connected activities which
Defining the goal of Lean Six Sigma in 4 sentences : Identify and understand the true value that the customer needs from a product of service and optimize the efficiency and effectiveness of the processes needed to produce that product or service. The optimization is achieved by reducing or eliminating waste in each process and creating steady flow and flexibility of production. Production of product or service should match customer demand. Reduce variation in the