Lean Six Sigma is a team oriented, strategic approach which combines tools, methods, principles of Lean and Six Sigma into a single methodology to improve organizational operations. With companies like Motorola, General Electric, Dell, Kodak, Boeing, Ford Motors gaining success by implementing Six Sigma in their processes it had formed a perception that Lean Six Sigma is meant to be used in manufacturing industries only. But not anymore!
Lean Six Sigma may have an incredible history in the manufacturing industry, but many people have derived break through strategies by applying its techniques in their respective organizations irrespective of its nature. More and more companies are hiring professionals who have knowledge about Lean Six Sigma to improve their organizations’ results. The pre-conceived notion that Lean Six Sigma is meant only for manufacturing industries’ use only has been supported by various views like- service sector is a people driven sector and since people perform tasks there can be no defects. Also, people think Six Sigma is very technical and every employee and leader wouldn’t have knowledge about it. But it is important to point out that all these are perceptions.
Service sector has no fixed definition. While some feel that services are rendered and experienced others define it as something which is intangible and cannot be stored on shelf. As per a report published by Department of Industrial and System Engineering, National University of Singapore: Today more than 79 percent of the US workforce is employed by commercial businesses and almost similar percentages are involved in Europe and other countries as well. Despite the high number of service employees, some companies still believe that improving commercial processes is less important than improving industrial processes, or that seemingly intangible commercial processes cannot be controlled. Both beliefs are wrong. First, customers are more likely to take their business elsewhere because of poor service than a poor product, and second, companies like General Electric and Allied Signal have shown that improving internal and external commercial processes adds significantly to the bottom line and customer satisfaction. Applicability of Lean Six Sigma in service industry generates sustained development, improves customer focus, sets direction and goals, increases profitability and reduces waste. Though it might not apply to all service processes but, if understood and implemented properly it can be used in most service functions, if not all.
The Dabbawalas or meal-box delivery people are an excellent example of a successful Lean Six Sigma applicability in service industry. Delivering 2,00,000 meals a day in a city like Mumbai is a tough job. Various problems like wrong meal-box, broken meal-box, wrong destination is meant to happen. Also, traffic is another big problem. Despite all this, they operate at Six Sigma level and have also been awarded a certificate for the same.
While some who had earlier invested in it are blissfully reaping the profits others are viewing the merits and demerits of investing in Lean Six Sigma applicability. As Lean Six Sigma becomes more valued in the last decade, it has been proven by service sector industries that every organization can benefit from its use and experience increased profits and efficiency.
For KPMG Lean Six Sigma Training registrations mail to in-fmsixsigma@kpmg.com or call at +91 9555688555 or +91 9022033666.
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