Everything we undertake in our businesses have to start with the customer, who they are, what they want and how we can get it to them quickly, correctly, in working order, what they asked for exactly and to specification, on demand, at an affordable price, delivered and guaranteed. Sound like a tall order? Well, increasingly research shows informed, empowered customers know and get what they want and to stay viable, let alone be profitable and thrive, we need to have our businesses in line with delivering to all of the above in a cost-effective and streamlined, efficient way.
A good plan of action, the right culture and voila you are all set to start your deployment of Lean Six Sigma and unleash its power and reward on your business, profits and customers!
Now that we have determined that Lean Six Sigma can actually help you eliminate waste, variation, time, effort and material, is customer oriented and just-in-time delivery of what they want, reducing costs while improving quality, we can briefly switch gear and look at areas of the business where Lean Six Sigma can help you and your customers.
Areas where Lean Six Sigma can help:
Making the most of quality and time, speeding up processes that actually matter. It does make a difference. Wait times, cycle times from start to finish all impact business success. Lean Six Sigma is not just for manufacturing processes. It is for ALL PROCESSES.Knowing where to focus your efforts are also important. The 80/20 rule, or Pareto principle in Lean Six Sigma is a handy tool to help you prioritize and focus on what needs to get done right away, first, eventually, over time. 80% of the problems/potential is in 20% of the process or area. It is up to us to find it and do something about it!
The Pareto principle (also known as the 80–20 rule, the law of the vital few, and the principle of factor sparsity) states that, for many events, roughly 80% of the effects come from 20% of the causes. Management consultant Joseph M. Juran suggested the principle and named it after Italian economist Vilfredo Pareto, who, while at the University of Lausanne in 1896, published his first paper "Cours d'économie politique." Essentially, Pareto showed that approximately 80% of the land in Italy was owned by 20% of the population; Pareto developed the principle by observing that 20% of the pea pods in his garden contained 80% of the peas.
It is a common rule of thumb in business; e.g., "80% of your sales come from 20% of your clients."
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