Efficiency has been my topic for many of these ‘Ideas’ newsletters. Even though a company may not actually say their objectives for 2007 are Efficiency, its components [increased revenues and/or decreased costs] are always mentioned as candidates.
If your company is in manufacturing, you may be embracing Six Sigma principles to become more Efficient. The main thrust of Six Sigma is to reduce manufacturing defects [which will decrease costs]. And, half of the 6 steps to Six Sigma deal with process. They even have a couple of different 6 step processes to define and improve their processes [DMAIC & DMADV].
Our Thoughts…
Six Sigma is about Efficiency.
Since our focus is on defining and improving business processes [not just manufacturing processes], we have come up with a ‘process loop’ that is very similar to the Six Sigma DMAIC process.
The DMAIC process is: define, measure, analyze, improve and control the process.
We see the process of improving processes as a loop:
Note: Most Six Sigma writings state that Zero defects is unachievable. However, these same writers recommend continuous process improvements. The Six Sigma Academy contends that ‘black belts’ can save companies $230k per project and they can complete 4 to 6 projects per year.
The savings are there - it is all about Efficiency.
Your Thoughts…
Has your company embraced process improvements? Have you uncovered strategies that you believe have made your company more Efficient?
If your company is in manufacturing, you may be embracing Six Sigma principles to become more Efficient. The main thrust of Six Sigma is to reduce manufacturing defects [which will decrease costs]. And, half of the 6 steps to Six Sigma deal with process. They even have a couple of different 6 step processes to define and improve their processes [DMAIC & DMADV].
Our Thoughts…
Six Sigma is about Efficiency.
Since our focus is on defining and improving business processes [not just manufacturing processes], we have come up with a ‘process loop’ that is very similar to the Six Sigma DMAIC process.
The DMAIC process is: define, measure, analyze, improve and control the process.
We see the process of improving processes as a loop:
- Define the process - Confirm the definition is correct by testing it, edit and retest, measure
- Automate the process - Where can you automate? Where could you eliminate steps? etc.
- Manage the process - Implement the solution and manage your processes
- Integrate the process - Integrate your process with other processes/software where feasible
- Monitor the process - Monitor the process against people changes, environment changes, etc.
- Improve the process - Implement the improvements in the definition
The last step calls for you to edit your process to input the changes. The process loops from step 6 back to step 1. This should be an ongoing process.
Note: Most Six Sigma writings state that Zero defects is unachievable. However, these same writers recommend continuous process improvements. The Six Sigma Academy contends that ‘black belts’ can save companies $230k per project and they can complete 4 to 6 projects per year.
The savings are there - it is all about Efficiency.
Your Thoughts…
Has your company embraced process improvements? Have you uncovered strategies that you believe have made your company more Efficient?
Labels: efficiency, manufacturing, process automation, six sigma, workflow
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