Why Six Sigma or Lean aren't delivering sufficient value
Service or Transactional Six Sigma success in manufacturing has never been replicated in the services industry and corporate interest in pure Six Sigma passed its peak several years ago. Lean Sigma is currently the approach of choice for many organisations, but even that is now under real pressure as businesses look to improve processes radically to cut costs and survive the recession.
Transactional processes often contain well over 50% waste and perform at no better than 4.0 process sigma at best. Improvement solutions frequently conflict with various IT systems priorities which limit scope and impact for process change.
The Lean Sigma evolution
In the evolution of process improvement and design, Lean has focused on getting the flow and value right, and Six Sigma on customer and defects. The next evolution must build on these achievements while embracing a step change in both rapid optimization and automation of the full business process.
Business Process Management (BPM) approaches and tools have matured over the past five years and now allow a near seamless capture of any business process, optimization, and automation in a well-structured manner.
BPM tools such as IBM Lombardi Blueworks Live combine collaborative process modelling with Lean Sigma tools such as SIPOC, FMEA, cycle time analysis, and value stream analysis. Process participants, systems and problems can be captured against each process step, building up the current process model. The tool and process repository are shared in a collaborative ‘software as service' environment, reducing delays and encouraging agility.
Agile Lean Sigma
Anyone implementing a BPM project without incorporating Lean Sigma is missing out on potential business benefits. Likewise, Lean programmes which are not utilising BPM tools in an agile delivery approach are missing out. We have been monitoring this across several client sites and found that:- Lean without BPM and Agile delivery usually delivers 10% - 15% improvement per project
- BPM without Lean usually delivers 20% - 25% improvement per project
- Lean with BPM and Agile delivery delivers 35% - 80% improvement per project (averaging just under 60%)
Using Lean Sigma techniques with foreknowledge of what can be automated with your BPM Suite, you will eliminate the non-value add and business value add activities in your process. The BPM tools will perform the work flow, audit, enforcement, monitoring and reporting. You can then focus on the value add process activities, Leaning them and determining which of can be automated.
Your improved process will contain fewer activities and will be designed for BPM. This reduces your automation effort substantially. You will deliver more value with your BPM projects and reduce the costs of delivery.
As the BPM market place matures, organisations are starting to realise the potential value of Agile, Lean and BPM. We believe BPM will supplement Lean Sigma, revolutionising the approach and enabling thought leaders to achieve the same competitive advantage as early adopters of Six Sigma in manufacturing.
About T-Impact
T-Impact's Agile Lean Sigma method integrates Lean Sigma, Agile delivery and Business Process Management tools to rapidly deliver the transformational results you are seeking and ensure savings are sustainable. We deliver an average of 60% improvement on process performance - across several industry sectors. Our projects are short, sharp and fun, usually delivering a working solution within 6 weeks.
To learn more about T-Impact, visit our website http://www.t-impact.com/offers/business-process-management-offers.html
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