Why choose it to reduce cost

This is a great article written by Mr Steven Skinner  

Managing Director at BTO Group Pty Ltd

 

The integration of Lean Six Sigma is one of the most effective methods for consistently improving cost, speed, and quality, with broad success across all industries, not just manufacturing.

It’s fast, delivering substantive results literally in a manner of weeks.

It’s efficient, delivering exceptional reductions in cost with relatively low investment. Most companies realise rates of return at the project level of equal to 5 times their investment, and rates of return at the program level 12 times or greater.

It’s effective, providing a mechanism to identify, leverage, and replicate best practices in cost reduction across the enterprise.

It’s practical, providing fact-based, analytical, straightforward methods used to uncover the root causes of high-cost; get waste out of processes, and transform plans into actions.

It’s game changing, creating competitive advantage in terms of operational cost, customer quality, and enterprise speed:

• reducing direct labour costs
• lowering indirect costs
• improving return of assets
• accelerating customer order lead times
• improving overall customer service levels
• enabling enterprise flexibility-responsiveness to changes in customer needs and market demands and economic considerations.

It builds capability. Whether simple project execution or enterprise transformation, Leans six sigma imparts capability to the organisation in a blended array of methods, including e-learning, classroom participation, experimental learning, or “just-in-time” project support training.

It’s transformational. Resources at all levels are engaged and aligned toward common goals and projects that support business strategy. Company culture can truly transform as resources provided with a fact-based improvement methodology and infrastructure that supports and empowers the entire organisation to continuously drive toward higher performance.

It’s sustainable, linking process metrics with performance management; engaging process owners; and empowering front-line resources by providing them with control mechanisms to sustain gains.