Learn how PEST Analysis can be a useful Problem-Solving tool
This presentation is on problem solving using the why tree and is designed to teach a standardized approach for your people at all levels of the organization. Good problem solving skills within your company will cause your business to thrive while making everyone’s life easier in the process.
That’s because Six Sigma aims at improving the company’s processes by eliminating potential product defects. On the other hand, the Lean strategy aims at getting the job done as quickly as possible. This means that the Lean Six Sigma methodology aims at improving the company’s overall performance by eliminating most of its defects – often with immediate effect.
Since time is a huge constraint in any business, many firms are waking up to the benefits of the Lean Six Sigma methodology. Many companies have even gone forward and adopted it in their business processes. The best thing about Lean Six Sigma is that it can help businesses save a lot on unnecessary expenditures, especially when it comes to managing operational costs.
Therefore, business organizations can improve their competency as well as quality, thanks to Lean Six Sigma.
The Concept of Lean Six Sigma
The term “Lean Six Sigma” is referred to in many ways, namely, lean manufacturing, lean service, etc. Another advantage of Lean Six Sigma is that the codes of the Lean strategy can easily work with standard Six Sigma principles. Lean Six Sigma ensures that the company’s resources don’t go to waste, since it utilizes all of them to bring about improvements in quality as well as in the speed of the completion processes.
It doesn’t matter what your company is dealing with, be it service oriented or manufacturing processes. Lean Six Sigma often works perfectly with any business. That’s because when Lean Six Sigma is executed, companies are able to speed up most of their business processes, and at the same time, not compromise the quality aspect of the products or services that the company is dealing with.
Since Lean Six Sigma brings about a change in the inner workings of an organization, it becomes very easy to reduce any overhead costs such as maintaining the inventory of both raw materials as well as the finished products. Once the methodology has been applied perfectly to suit the company’s processes, it becomes very easy to cater to customers’ demands within the stipulated time.
Lean Six Sigma also emphasizes providing the necessary employee training so that they can efficiently learn and use the tools and the principles of Lean Six Sigma.
Lean Six Sigma also encourages the participation of senior management in the training process, so that the employees take to the change easily. The methodology also makes use of techniques to reduce processing times and increase the productivity of goods, which leads to increased customer loyalty. The most important thing to keep in mind is that Lean Six Sigma should be exercised only by the experts (i.e., Six Sigma Black Belts and Champions).
Due to the aggressive competition in the market today, it is absolutely essential for companies to adopt Lean Six Sigma. Only then can they guarantee top quality products and services in the shortest period of time possible.
This is applicable all the more so for businesses that just cannot afford to keep solving the same types of problems over and over again and deriving satisfaction from such dubious achievements. So what is the right approach to problem solving? Well, for that you just need to have a look at the time-tested Six Sigma root cause analysis tool that stresses locating and eliminating the root causes of the problem rather than finding quick-fix solutions.
In effect, it basically helps businesses to find long-lasting solutions for all types of problems that occur repeatedly when left unchecked in their natural state. For better understanding, let us discuss how exactly does the Six Sigma root cause analysis tool helps businesses to find the most appropriate solutions.
Defining and Measuring the Problem
The first step in the root cause analysis process deals with the identification and measurement of the problem. In this step, all the various aspects are considered such as when exactly does the problem occur, where exactly it occurs, what damage potential does it have, why exactly does the business needs to solve the problem and how will the business benefit by solving the problem.
All this is usually done by comparing the VOC (Voice of the Customer) that represents customer expectations and the VOP (Voice of the Process) that represents what customers are currently receiving. Using this approach helps businesses to devise effective solutions that are in line with customer needs and requirements.
Finding the Root Causes and Devising Effective Solutions
After identifying the problem, the next step deals with finding the root causes and also understanding their relationship with each other. This is usually done by collecting sample data related to the problem and consequently using the root cause analysis tool for finding the main factors responsible for the defined problem.
This step also deals with finding the most appropriate solutions that not only solve the given problem, but also ensure that the problem does not reoccur in the near future. Usually multiple solutions are suggested and put through advanced simulation tests to check their applicability.
From among these, the solution that best fits the bill is selected for final implementation.
Implementing and Controlling
A business may have zeroed in on the most appropriate solution, but its responsibilities do not end there. It’s because the business still needs to implement the solution and put in place control systems that will help in verifying the success or failure of the implemented solution.
It is only when the implemented solution passes the control tests can the business claim success for its problem solving initiatives.
Problems are inherent to business processes, and no tool or technique can ever claim to eliminate the occurrence of new problems. Six Sigma root cause analysis is preferred because it at least ensures that existing problems do not reoccur and are resolved in the most appropriate manner.