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Lean -- Strive for perfection, reduce waste, improve cycle times. General principles of Lean include: Identify which features create VALUE. Identify the sequence of activities to create the VALUE. Make the activities FLOW. Let the customers PULL products or services through the process. PERFECT the process to achieve standardization and reduce variation. Three categories of processes within Lean are: Value-added, non-value-added, non-value-added-but-required. It's been estimated that less than 10% of an organizations processes are value added from the customer perspective. The other categories are non-value-added and non-value-added but required. Six Sigma -- Reduce defects. Calculated by the number of things gone right divided by the number of things gone wrong. Things gone right are total opportunities performed correctly. Defects are things gone wrong. Calculate your Process Sigma 80/20 Change Rule of Thumb. On new improvement related initiatives, find the 20% that may be new. The other 80% you are likely already doing and/or have done. Successful organizations will have a track record for improving quality, reducing costs, and improving response/cycle times. What an organization might not have done is document and/or standardize their respective problem-solving and/or decision making methods. Programs such as Lean and Six Sigma provide an opportunity to look for new perspectives, techniques and tools that can be integrated into the organizational culture - culture defined as "how we do things around here." Cost of Poor Quality (COPQ). In other words, the cost of not doing things right, and/or not doing the right things.
Cost of Poor Quality
as an Estimate of Total Sales or Budget
Irony - Zero-Defects. The late Phillip Crosby was one of the first practitioners and consultants that focused on the advantageous of improving profitability by preventing defects. While working at Martin-Marietta from 1957 – 1965, he created the Zero Defects concept and later founded a successful consulting and training organization. Zero Defects became perceived by organizations as unrealistic until "Six Sigma" (almost zero defects) re-introduced the concept. Fusion Management. I would recommend learning more about Dr. Stanley Marash's insight into Fusion Management. Fusion Management provides a synthesis and context for a wide variety of quality initiatives, programs, and disciplines stratified at different levels (strategic, operational, tactical) within the organization. |
