When running a business, it needs to run smoothly. It’s not a good idea to handle a business without a proper plan in mind because it’ll lead the business nowhere. Most large-scale businesses are what they are today because of how efficient their work ethics are around the workplace.

If you notice that your business is struggling, you might want to do something about it before it goes south. There are different kinds of courses that can help you achieve success within your business. One method you should learn about is the Lean Six Sigma method. Not many people know about this method, which is why you should take advantage of it whenever you can.

The History behind the Method

You might think that Lean Six Sigma is a new method created by businessmen to make their businesses grow. In 1986, American engineer Bill Smith introduced it while working at Motorola in 1986. It was still called Six Sigma back then. The method was so successful that Motorola attributed over $17 billion in savings back in 2005. Everyone would agree that it’s an extremely large amount of money. It’s the reason why many businesses have already implemented the Lean Six Sigma method. They have done it to ensure they can achieve the same success as what Motorola did back then.

The word “lean” from the method means lean manufacturing, also known as lean production. It was a method created by Toyota, and the person who picked this up was John Krafcik in 1988, and defined by Daniel Jones and James Womack in 1996. They made five key principles which consist of value, mapping the value stream, creating a flow, establishing a pull system, and finally, perfection.

How Does it Work?

With an idea about the method’s history, the next thing you need to know is how it works. Lean Six Sigma is a method that promotes to improve performance within a business by systematically removing waste and lessening variation. These are Over-production, Defects, Non-utilized Talent, Waiting, Inventory, Transportation, Extra-processing, and Motion.

Each of the wastes mentioned is also defined:

  • Over-production – It refers to creating products that are more than what is needed by the business. Producing more is usually a risky way to do because the products might not be sold or distributed, which means tons of materials might have got wasted and the company could have used them for better purposes later on.
  • Defects – A defect is a product that is declared out of condition and cannot be used by consumers. Whenever there’s a defect in the production process, that means it’s either a manufacturer scrap or one which needs rework, and doing so will cost the company valuable time and money.
  • Non-utilized Talent – This is a new addition to the eight wastes. What it means is wasting the human skill and potential of the workers. The management should always check and give feedback to the employees to ensure each of them is doing the right job. Better management equates better employee productivity.
  • Waiting – As strange as it sounds, waiting is one of the eight wastes. It means delays in process steps, and it is split into two categories: waiting for material, equipment, and idle equipment. Waiting can also be about how long the superior takes to give out authorization, responding to critical emails, and even slow and faulty equipment.
  • Transportation – When delivering materials, they should be sent straight to the manufacturing area at once. There are times when they’ll still pass through unnecessary processes, which can hold up the production. Unnecessary transportation adds no value to the products, and it might potentially damage them in the process.
  • Inventory – Manufacturers, companies, and businesses should not store any excess materials and products that aren’t yet processed. Over time, the excess materials and products might become obsolete, creating a loss.
  • Extra-processing – Some businesses tend to add more processes that are unnecessary, taking up more time and causing possible delays.
  • Motion – If workers do any unnecessary actions, there’s a chance they might get injured. Work areas should be efficient enough to have a lot of equipment to get jobs done.

By learning and following Lean Six Sigma, you are bound to achieve continuous success for your company.