About Lean Six Sigma
“Over the past 20 years, Lean Six Sigma, business improvement methodology, saved Fortune 500 companies about $427 billion.
Corporate-wide Lean Six Sigma deployments save an average 2% of total revenue per year”
HISTORY OF LEAN SIX SIGMA
By creating assembly lines, Henry Ford sets in motion a revolution in manufacturing processes worldwide.
WWII leaves the Japanese economy devastated, forcing Japanese business to innovate to survive.
Often dubbed “The Original Data Scientist” W. Edwards Deming goes to Japan to work with Japanese industry leaders.
First use of a Six Sigma tool by US Dept Of Defense: Failure Mode Effect Analysis (FMEA)
Toyota customizes Lean Six Sigma program and brands as Toyota Production System creating the global industry “gold standard”.
US Military adopts Lean Six Sigma as Observe Orient Decide Act (OODA)
Creates a data-based problem-solving methodology called “DMAIC” – define, measure, analyze, improve and control
From 1996-1999, Jack Welch reports Lean Six Sigma results in $4.4B savings or 1.2% of revenue.
Lean Six Sigma innovated and applied outside of Manufacturing processes to financial and business processes for the first time.
Early Adopters Combine Lean and Six Sigma and report savings from 1.2 percent to 4.5 percent of revenue ($360,000 and $1,350,000 in bottom-line-impacting savings per year).
Guerrilla Analytics applies Lean Six Sigma to Private Equity.
WHY WE PRACTICE LEAN SIX SIGMA
Broken processes hold people back from achieving their potential.
Perfection is not attainable, but if we chase perfection we can catch excellence.
The Toyota Style is not to create results by working hard. It is a system that says there is no limit to peoples creativiety.
People dont go to Toyota to work, they go there to think.