Want to ’build’ a successful company?

Then follow what the ‘leaders of industry’ are doing!

All major companies which have:

•   a sound financial system in place,
•  a market for their product(s), and have
• a robust strategic plan

focus in the main, and on an ongoing basis,  on the following areas :

NB. These areas are interrelated, and interdependent.

Why these areas?

Clients 

What successful managers realise all too well is that ‘management only handles the monies that clients bring in’.  It is, therefore, imperative for them to remain in touch with any shift in client needs and requirements, and to respond timeously:

·         with products of the highest quality, that meet the changing needs of customers,

·         In the shortest possible time, and at the

·         lowest price possible.

 

Culture

The managements of highly successful companies focus on building cultures (a way of doing) amongst all their employees that strive towards the fulfilment of the abovementioned requirements on an ongoing basis. Successful behaviours are reinforced and rewarded regularly.

Busines processes ( i.e. all the steps involved from placement of order, through production / service  provision, to product delivery

Managements realise that all their business processes need to be devoid of all forms of waste, and non value-added activities; they know that clients are not prepared to pay for non value-added activities. They, therefore, ensure, on a continuous basis, that all their business processes function optimally.

We specialise in the optimisation of business processes; for more information, please visit our website www.businessprocessmanagement.co.za 

How to create a Six Sigma / Lean Six Sigma culture in your company

How to create a Six Sigma / Lean Six Sigma culture in your company

My previous blogs refer. Before I address the abovementioned topic, herewith some reminders:

• Definition of ‘Business Process’: It is ‘any number of sequential steps required to transform an input into an output’ (be it a product or a service, a production line or a service department).
• We make extensive use of Six Sigma and Lean Six Sigma (suggest you read my previous blogs).

How to create a Six Sigma / Lean Six Sigma culture

Our aim, at all times, is to get the managements of companies to adopt Lean Six Sigma as a business philosophy, and thus to create a lean culture (amongst others, Jack Welsch did it at General Electric, and Toyota did the same, with great success). This is the only way in which companies will remain competitive in the long run, provided there is a market for your product(s), and that the company has a robust strategic plan in place.

The following are some guidelines:

• Engage a Six Sigma / Lean Six Sigma Black Belt (on a contract basis) to optimise a business process which is of strategic importance.
• Make sure that sound business cases can be made out for such a project.
• Appoint a young up-and-coming, bright, senior manager as a ‘sponsor’ (management representative) to the project. He / she will lead the project together with the Black Belt.
•  Establish the Six Sigma process baseline (i.e., how much variation there is at present from what the client view as ideal), as well as a financial baseline for the project.
• Ensure that the necessary metrics for measurement are put in place, and that it is reflected on the CEO / MD’s dashboard.
• Select subject matter experts (SME’s) to work on a part-time basis with the Black Belt.
• The sponsor need to sign off each element of Six Sigma (elements-DMAIC – see explanation in previous blog).
• Communicate progress and results to the company as a whole, on an ongoing basis.
• Management to focus on client needs, company culture, and process management throughout the project. These aspects to feature regularly in management communiques.
• Optimise at least one or two processes the Six Sigma way, and repeat points listed above.
• The CEO / MD should announce at this stage, that the company has decided to adopt a lean philosophy, and will make extensive use of Lean Six Sigma principles, throughout the company, from then on.

During the above processes, use the Black Belt to:

• Develop the typical set of values that should drive the Six Sigma culture change.
• Recommend the most appropriate books / literature on Lean Six Sigma for the management team to read / study.
• Recommend companies which have adopted a lean culture, for management to visit, and to gain insight.

Note: This is not intended to be a comprehensive list. For more information / advice, and / or a presentation, kindly contact the writer via his website:

http://www.businessprocessmanagement.co.za

OUR METHODOLOGY

Being a qualified Lean Six Sigma Black Belt, the MD makes use of the following tollgates (steps) of the Six Sigma methodology, namely:

• Define - A clear definition of what is to be achieved with a sound business case.
• Measure – Any ‘potential’ weakness / shortcoming is measured first, prior to any action being taken.
• Analyse - Measured data is analysed, and the root cause is established, prior to any possible solutions being generated.
• Implement - Any solution generated, is with management’s consent.
• Control - Control systems are designed in conjunction with management nominees, and employees are trained, prior to implementation.

The advantages of using the Six Sigma methodology are:

•  It is a scientifically based methodology.
• A sound business case can be made out for the project, prior to proceeding with the project.
• A baseline is established, against which progress is measured and monitored.
• The consultant prescribes the process to be followed, and the methodologies to be used.  The consultant also provides the training of management nominees in the application of Six Sigma and Lean Six Sigma methodologies.
• Management appoints:
• A sponsor (to be accountable for the project, together with the consultant).
• SME’s (subject matter experts, who will work with the consultant).
• Management reviews progress made after each of the DMAIC steps listed above.

SUITE OF SERVICES

We specialise in:

The optimisation of business processes and / or ‘restructuring’ companies on lean principles, with the aim to deliver products / services:

•  of the highest quality.
•  at the lowest cost.
•  in the shortest possible time.

Def. Business Process:  “Any number of sequential steps required to transform an input into an output” (be it a product, or a service).

However, to live up to our logo of Company Performance Optimisation, we provide the following additional suite of service:

• Strategy facilitation and / or testing the robustness of an existing strategy.
•  Assessment of:

•  financial state of the business.
• client satisfaction.
• Innovative ability. 
•  manpower utilisation, training and development, and succession planning.
•  prevailing culture.
• ability of management to deal with change.and

remedial action plans, where required.