Page 26 - Lean six sigma demystified

Chapter 1 What iS Lean Six Sigm a ? 5

Humans, however, have the ability to create tools to extend the five senses.
The tools of quality can give you an eagle’s eyes and a dog’s ears, if you let
them.
The primitive methods and tools that took you to sustainable profitability
will take you no further. To turn your cash cow into a golden goose, you will
need the common science in Lean Six Sigma to make breakthrough improve-
ments. Here’s what you can accomplish with Lean Six Sigma.
1. Double your speed without working any harder. Most companies have
extensive delays built into their processes. Eliminate the delays, and you
can run circles around your competition.
2. Double your quality by reducing defects and deviation by 50% or more.
Lean alone has been shown to reduce defects by 50%. Add Six Sigma and
you’ve got a recipe for world-class performance.
3. Cut costs and boost profits because every dollar you used to spend fixing
problems can now be refocused on growing the business or passed right
through to the bottom line. Instead of wasting 25% to 40% of every
dollar you spend fixing things that shouldn’t be broken, most of that
money can fall through to the bottom line boosting margins through
the roof.

Top 10 Ways You Know You Need Lean Six Sigma

10. Customers still complain about your products and services.

9. Employees complain about the roadblocks to serving customers.
8. Blaming customers.
7. Blaming employees.
6. Customers return products for refunds.
5. Warranty costs climb.
4. Customers switch to your competitors.

3. Sales flatline or fall.
2. Margins are thin.
1. Growth stagnates or shrinks.