Lean Six Sigma
Lean Six Sigma involves carrying out five distinct steps; these are define, measure, analyze, improve, and control (DMAIC). Organizations that benefit the most from Lean Six Sigma embrace all the steps throughout all levels of their operations. The importance of the five steps in the achievement of organizational transformation is evidenced in the transformation of two organizations Linde Group and Boston Scientific. Both organizations transformed their operations using the principles of Lean Six Sigma and provide great insight into the success that may be achieved by applying the methodology. The Mega Pack Line Blow-Up project at Boston Scientific Heredia looked to implement an efficient continuous-flow packaging line. In Linde Group, a global gases and engineering organization with many moving parts, the goal for implementing Lean and Six Sigma was to streamline and improve their operations.
The first step is define whereby there occurs a definition of the problem, the opportunities for improvement, improvement activity, project objectives, and customer requirements. In the second step of measure, process performance is measured, and the magnitude of the problem is assessed. In the third step, the process is analyzed to determine the root causes of poor performance and variations. In the fourth step, improve, process performance is improved through the elimination and addressing of the root causes. In the final control phase, the means of sustaining the improvement made in the previous phase are determined. Such measures may include the creation of a quality control plan for the documentation of measures needed to keep the improved process at its current level.
From following the above-outlined steps, Linde Group and Boston Scientific effectively implemented the principles of Lean Six Sigma to achieve a positive transformation to their organizations. At Linde group, implementation of Lean Six Sigma led to the elimination of 1,163 man-hours of annual non-value-added movement, increased productivity by 18 % to 48%, and decreased variable production costs by 10% to 35% (Waite, 2013). At Boston Scientific, product transportation was reduced by 51%, with the efficiency of the line improved by about 15%, redundant inspections were eliminated, and appropriate controls relocated to guarantee the quality of critical outputs. Additionally, Mega Pack Blow Up project led to total annual savings of up to $114,000, and $23,000 in cost avoidance (Camacho, 2015). The benefits observed from the implementation of Lean Six Sigma principles in the two organizations indicate the importance of incorporating the methodology to ensure positive organizational transformation.