Facilitating organizational design is a major function of the Lean Six Sigma technique.

Organizational design, according to the University of Southampton, is “the process of matching an organization’s structure with its objectives, with the ultimate goal of improving efficiency and effectiveness.”

It includes three discrete and successive processes for the sake of this post: design, execution, and improvement.

The process starts with the design, or redesign, of a full business, its component units, and the connections between them. Other names for it include business process management, business process re-engineering, and business transformation.

At the most basic level, it involves redesigning the organizational architecture, beginning with the identification of the relevant stakeholders and business processes, and moving on to the design of an organizational structure based on business processes that include KPIs, design objectives, and other settings. Lower-level design, on the other hand, focuses on process mapping and the organizational structure of the intended process itself, which includes elements like resource allocation and risk management.

It’s important to remember that the breadth of this organizational design should be seen as a single project that covers the full business and all of its parts. Every element that has been designed here should then be put into practice during the “execute” phase and improved as needed afterward.

Introducing Lean Six Sigma

Execution is just one aspect of this subsequent phase. Additionally important are the data collection and monitoring processes employing dashboards for graphical and statistical analysis based on the KPIs specified in the “design” phase. As a result, if a specific cause or non-conformity—i.e., an element that doesn’t operate as intended—is found, it can be approved for “containment and correction.”

Imagine that a water pipe has broken. The leak will be stopped by containment, but a new pipe will need to be installed to let water back into the system. The root reason for the non-conformity won’t be discovered through “containment and correction,” though. The “improve” step, when corrective and preventive action is taken, is where this is done, as well as eliminating it to stop it from happening again.

Lean Six Sigma makes it possible to improve current products, services, and procedures while minimizing errors, which reduces special causes and non-conformities.

It provides a strong combination of two methodologies: the focus on defect and variation reduction of Six Sigma and the waste-reduction mindset of Lean. Its main objective is to reduce waste by reducing business process variability and establishing a continuous flow between each stage, allowing organizations to solve issues more quickly, reduce process inefficiencies, and increase productivity.

Lean Six Sigma is a technique, but it’s also a way of thinking about business, a way of measuring success, and a set of tools. It serves as a toolbox for improvement.

Building on a foundation

Lean Six Sigma offers many tools that should be employed in the first “design” phase, much like when planning a building: the project’s scope and the company’s design are like the floor plan of the entire structure. Every room in that building, which symbolizes a component of the organization, has an initial design that Lean Six Sigma details and improves.

The “design” phase must, however, provide the foundation for the Lean Six Sigma program. Programs for Lean Six Sigma usually fail, with the main cause being a lack of a solid basis. This indicates that no Lean Sigma Six efforts need to start before the company’s fundamental design and architecture.

Imagine that a company’s project portfolio includes 50 Lean Sigma Six projects that are active at once. KPIs, the customer’s voice, and numerous business processes must be recognized and mapped for each project. Running aligned and simplified Lean Sigma Six projects in an integrated portfolio requires the overall consistency that results from creating a solid framework.

Improving until entitlement

In the “execute” phase, several Lean Six Sigma tools are used. Lean Six Sigma tools include gathering data, monitoring, and dashboarding, for example. In short, applying Lean Six Sigma thinking at the corporate level is a different approach to defining how an organization is designed.

Additionally, during the “improve” phase, each component of the business is improved using the Lean Six Sigma approach until it reaches the process entitlement. Starting with the “before,” it entails boosting Six Sigma capabilities by reducing errors, cutting costs, and boosting performance until the desired “after.”

Lean Six Sigma is an important part of organizational design since it serves as a methodology, philosophy, metric, and toolbox. Businesses can create and then realize the performance they most want from their company and all of its composite elements when the proper framework, or foundation, is in place.

Here at CourseMonster, we know how hard it may be to find the right time and funds for training. We provide effective training programs that enable you to select the training option that best meets the demands of your company.

For more information, please get in touch with one of our course advisers today or contact us at training@coursemonster.com

Why is Lean Six Sigma still a significant business model in 2022?

Think it’s become even more essential in the 25 years since it was initially formed. Initially, the concept gained momentum in manufacturing as an effective way of eliminating waste and improving quality; but, as Lean principles were more integrated into it, it was subsequently adopted in service industries as well.

Today, as our world evolves, it gets more competitive through innovation in products and services, platforms, and distribution systems. As a result, having a process in place to address continual improvement is important.

Finding a Reason for Lean Six Sigma

What are the criteria for implementing Lean Six Sigma if an organization or individual professional has yet to dive into it? Do you, for example, have dissatisfied customers? Do you have any product returns? Is it necessary to rework your outputs at the end of a production cycle?

These are just a few of the reasons why you should have a system in place to identify specific problems in your organization. Finally, you want to be able to give customers what they want at the lowest possible cost to you by employing an organized, methodical approach to problem-solving.

The five-step DMAIC process is important to the Lean Six Sigma approach:

Define: that includes everything related to a process, beginning with what the customer needs, identifying what is important to the job, and defining each stage in the process, including who, what, which materials, and outputs.

Measure: what are the important characteristics along the process, such as inventory, time, defect counts, time spent on reworks, and so on?

Analyze: what does the data indicate? Where is the production process paused? What elements could be affecting output quality?

Improve: how do you make things better? How can you improve process flow? How do you keep track of your inventory?

Control: what procedures do you need in place to collect input and ensure that the fixes stay in place?

This procedure has a significant impact on quality and efficiency in a production context.

Siemens Automotive’s plant in Mexico, for example, assembles instrument panels for different cars and experienced a recurring fault on the assembly line. Circuit boards were failing when put in vehicles; utilizing Lean Six Sigma, we assisted them in identifying the issue: human mistake when installing a device, which caused the electronics to short.

Service industries can increase quality while reducing waste

Although many of the concepts in Lean Six Sigma originated in the industrial industry, the methodologies are still applicable to service businesses, whether you work in accounting, mortgage processing, or coding. People in these surroundings must nevertheless go through some processes to perform the task.

For example, obtaining a mortgage loan necessitates an application, data collection (credit reports, etc.), and the creation of approval for the customer. In one real-world example, we worked with a mortgage company to investigate their processes and cut the decision-making duration by three weeks, enhancing corporate productivity and producing better customers.

Even if the business does not produce a physical product, there are opportunities to improve where there is a step-by-step process. We’ve sometimes questioned businesses, “Why do you do that?”. Rather than articulating client demands and doing everything possible to accommodate them, they prefer to say, “We’ve been doing that forever.”

Lean Six Sigma as a Career Development Strategy

Lean Six Sigma is a skill set that is employed by virtually every major and mid-sized company in the world. Whatever function you work in today or in the future, you should be aware of the methodology’s capabilities.

Combining a Lean Six Sigma certification with your degree or other academic studies could be the differentiator in a job interview for professionals earlier in their careers – having another element that makes you different/better than the other contenders.

Here at CourseMonster, we know how hard it may be to find the right time and funds for training. We provide effective training programs that enable you to select the training option that best meets the demands of your company.

For more information, please get in touch with one of our course advisers today or contact us at training@coursemonster.com

Why is Lean Six Sigma still a prominent business model in 2022?

First, the concept gained momentum in manufacturing as an effective way of eliminating waste and increasing quality; but, as Lean principles were more integrated into it, it was subsequently embraced in service sectors as well.

Today, as our world changes, it gets more competitive via innovation in products and services, platforms, and distribution systems. As a result, having a process in place to handle continual improvement is important.

Identifying a reason for Lean Six Sigma

What are the requirements for implementing Lean Six Sigma if an organization or individual professional has yet to dive into it?

Do you, for example, have dissatisfied customers? Do you have any product returns? Is it necessary to revise your outputs at the end of a manufacturing cycle?

These are just a few of the reasons why you should have a system in place to identify and address problems in your organization. Finally, you want to be able to provide customers with what they want at the lowest possible cost to you by employing an organized, methodical approach to issue resolution.

The five-step DMAIC method is the basis of the Lean Six Sigma strategy.

Define: that includes everything related to a process, beginning with what the customer wants, identifying what is important to quality, and defining each stage in the process, including who, what, which materials, and outputs.

Measure: what are the essential aspects throughout the journey, such as inventory, time, defect count, time spent on reworks, and so on?

Analyze: what does the data indicate? Where is the manufacturing process stalled? What elements may be affecting output quality?

Improve: How do you make things better? How can you improve process flow? How do you keep track of your inventory?

Control:  what procedures do you need in place to collect input and ensure that the fixes stay in place?

This procedure has a significant influence on quality and efficiency in a production context.

Siemens Automotive’s facility in Mexico, for example, assembles instrument panels for various automobiles and experienced a recurring fault on the production line. Circuit boards were failing when put in automobiles; utilizing Lean Six Sigma, we assisted them in identifying the issue: human mistake when installing a device, which caused the electronics to short.

Service businesses may increase quality while also reducing waste

Although many of the principles in Lean Six Sigma originated in the industrial industry, the methodologies are still applicable to service businesses, whether you work in accounting, mortgage processing, or coding. People in these surroundings must nevertheless go through many processes to carry out their duties.

For example, obtaining a mortgage loan necessitates an application, data collection (credit reports, etc.), and the generation of an acceptance letter for the consumer. In one real-world example, we worked with a mortgage firm to investigate their processes and cut the decision-making duration by three weeks, enhancing corporate productivity and producing happy consumers.

Even if the business does not produce a tangible product, there are possibilities to improve when there is a step-by-step process.

We’ve frequently questioned businesses, “Why do you do that?”

Rather than articulating client demands and doing everything possible to accommodate them, they prefer to remark, “We’ve been doing that forever.”

Lean Six Sigma as a Career Development Strategy

Lean Six Sigma is a skill set that is employed by virtually every big and mid-sized company in the world. Whatever role you work in now or in the future, you should be familiar with the methodology’s capabilities.

Combining a Lean Six Sigma certification with your degree or other academic studies might be the difference during a job interview for professionals earlier in their careers – having another aspect that makes you different/better than the other candidates.

Here at CourseMonster, we know how hard it may be to find the right time and funds for training. We provide effective training programs that enable you to select the training option that best meets the demands of your company.

For more information, please get in touch with one of our course advisers today or contact us at training@coursemonster.com