How
Much Can
You
Save?
If you haven’t
implemented Lean Sigma, there is probably more waste in your
operation than you think. As consultants to companies like
Honeywell, Procter & Gamble, Yamaha, Raytheon, and Glaxo
Pharmaceutical our experience is that 80% to 90% of the time
spent creating and delivering products and services is lost to
waste.
What if you haven’t implemented Lean Sigma? Most companies
with revenue over $250 MM operate at a 3 Sigma level of
performance. At 3 Sigma, products and services have a
probability of 66,800 defects per million!
While big companies boast in published materials about the
savings generated by implementing Lean and Six Sigma together
(Johnson & Johnson $5B, GE $2B, DuPont $700MM, Raytheon
$300MM, Motorola $16B), manufacturers and companies from
hospitals to car washes have discovered they can benefit from
implementation, too. Here are examples of savings from
companies our staff has supported:
-
Honeywell
(AlliedSignal) - $600MM reduction in 14 months
-
Tones Brothers –
Reduced inventory from $60MM to $25MM in less than 12 months
-
Litehouse Foods –
plant thruput increased 60% in 6 months after implementing
process mapping and quick changeover
-
L-3 Display Systems
- Thruput doubled, on-time delivery went from less than 50%
to over 99% utilizing value stream mapping and implementing
in-process Kanban flow control. Defects per million in the
circuit board ship decreased from over 5000 to less than
1000 through steady application of team-based problem
solving and statistical process control.
Math
For The New
Millennium
Lean Sigma makes 1 + 1 = 3
Waste and variation
are enemies of all business. Lean Sigma removes more waste and
variation than any other process
