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Improving Prices and Margins
Buyers reduce purchase costs carefully analysing unit prices and volumes, manipulating credit terms and using consignment stocks, etc. to achieve cost objectives. Marketing organisations do not always benefit from using these same techniques to protect and to improve their pricing and operating margins: business-portfolio pricing and unit margin analysis identifies pricing leverage opportunities: Lean Six Sigma methods supply powerful tools to achieve this.
Reducing Direct Costs
Product functional analysis, the underlying technique of Value Analysis, forces the organisation to thoroughly evaluate its offering to ensure that product cost perfectly meets prices customers are willing to pay for the functions and features they perceive: Lean Six Sigma provides the Voice-of-Customer and Value-Added methodology to achieve this.
Inventory Reduction
Few organisations prefer stock to cash: Cash Flow finances materials, Work in Process and Finished Goods, but it must turn over as fast as possible to counter debt, obsolescence, overcrowding in premises etc. Value-chain managers know how complex it is to address an overall inventory-reduction objective because it is affected by all of the operations, from forecasting and procurement, to storage, scheduling, production, logistics and marketing. Compliance with national standards is often a further source of carrying cost: the opportunities for failure to reduce inventory are many. Lean Six Sigma project-team problem solving provides the most efficient approach to bringing such complexity under control and to ensuring effective stock reduction.
Respecting Delivery Times
Timely delivery is also difficult to achieve due to the complexity of value streams: trainees are taught to apply classical Lean Manufacturing techniques, such as the search for continuous flow, the elimination of non-value-add processes and the smoothing of loading using Heijunka: here again, Lean-Six-Sigma teamwork delivers excellent results.
Value-Stream Mapping, Kanban and Heijunka
Complex applications of Value Stream Mapping are reviewed with common problems met using the technique; typical future-state solutions are evaluated, and detailed calculations are taught for cellular manufacture, Kanban, and mix/volume smoothing using Heijunka.
Conducting Kaizen Events
Running a full-time team for 3 to 5 days to fully evacuate a process problem is a stressful exercise needing discipline and effective teamwork. Successful Kaizen Events are the hallmark of talented Lean-Six-Sigma practitioners, and frequent, effective use of this approach accelerates grass-roots change within all organisations, from industrial production to hospital management.
Six Sigma Statistics, Capability and Measurement System Analysis
Statistics learnt during the Black Belt training weeks can be forgotten without repetition and constant practice of these tools; this module is designed to review this aspect of the curriculum in detail and to provide practice in using statistical software.
Design of Experiments (DOE)
The "flagship" of process improvement, DOE economically optimises process parameters to fine tune output performance; the method provides one of the most powerful opportunities for financial gain in both transactional and industrial processes: as one of the more complex approaches within the Lean Six Sigma curriculum, Black Belts are advised to take this course if they are preparing projects which may need Experimental Design.