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
1915
By creating assembly lines, Henry Ford sets in motion a revolution in manufacturing processes worldwide.
1945
WWII leaves the Japanese economy devastated, forcing Japanese business to innovate to survive.
1948
Often dubbed “The Original Data Scientist” W. Edwards Deming goes to Japan to work with Japanese industry leaders.
1949
First use of a Six Sigma tool by US Dept Of Defense: Failure Mode Effect Analysis (FMEA)
1953
Toyota customizes Lean Six Sigma program and brands as Toyota Production System creating the global industry “gold standard”.
1990s
US Military adopts Lean Six Sigma as Observe Orient Decide Act (OODA)
1990s
Creates a data-based problem-solving methodology called “DMAIC” – define, measure, analyze, improve and control
1995
From 1996-1999, Jack Welch reports Lean Six Sigma results in $4.4B savings or 1.2% of revenue.
1999
Lean Six Sigma innovated and applied outside of Manufacturing processes to financial and business processes for the first time.
Mid 2000s
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).
2017
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.
Vince Lombardi
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.
Taiichi Ohno