From the course: Lean Six Sigma Foundations
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Apply Lean Six Sigma to services
From the course: Lean Six Sigma Foundations
Apply Lean Six Sigma to services
- When Motorola first introduced Six Sigma, they focused totally on the shop floor and Bob Galvin, Motorola's CEO at the time, estimates that decision cost them more than $5 billion in the first four years. You see, even manufacturing companies have service operations. Lean and Six Sigma apply just as readily to purchasing, finance, engineering, and transportation as they do to production processes. Motorola did not recognize this at first, and that's the $5 billion opportunity they lost. Lean Six Sigma can help you reduce complexity within your service processes. Experts have estimated that as much as half of the work done in a typical service process adds no value in the eyes of the customer. And it is not just about reducing steps to speed up the process. That's an important lean contribution, but we also apply Six Sigma to reduce the variability in the value added steps. Variability adds costs, time, and waste to the service process. A classic example comes from Stanford Hospital…
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