Lean is a systematic method for eliminating activities that do not serve or add value to your organisation. Steps that appear to be wasteful are eliminated to ensure that steps taken always add value. Through high-quality processes, the lead method ensures customer satisfaction. A process is a collection of activities that use resources to convert inputs into outputs. Almost 80% of all activities in any process are non-value adding. Using specific lean tools, the goal of lean is to identify these activities within the process and eliminate them for increased efficiency. Non-value-added activities are those that add no value to the processor's products, value-added activities are those that are essential and add value, and enabling value-added activities are those that are valuable to the continuity of a process but add no value to the customer
Lean Six Sigma is a data-driven, fact-based improvement principle that prioritises defect prevention over defect detection. It encourages the use of work standardisation and flow by reducing variation, waste, and cycle time, thereby increasing customer satisfaction and bottom-line results. It can be used anywhere there is variation and waste. Lean six sigma combines the lean and six sigma strategies to improve process efficiency and quality. Because waste elimination eliminates the opportunity to make a defect, the lean emphasis on waste reduction supports the six sigma principles of heightened quality.
Today, the integrated Lean Six Sigma management approach is used in a variety of sectors and industries to achieve maximum effectiveness and exceptional performance growth. Both approaches work in tandem to help organisations realise the full potential of their process improvements by reducing waste and process variation
However, many businesses recognise the value of digital technologies in transforming performance. Integrating Lean Six Sigma principles into digital transformation can be a highly effective way of achieving broad-scale process simplification, allowing businesses to identify and apply the most effective levers for their digital transformation journey. Instead, in order to gain a competitive advantage, businesses must select the right technological building blocks based on their specific value creation potential.
To address its organisational needs, each company must arrange its own technological blocks. For example, if a company has insufficient value streams or poor data quality, sophisticated technology will not assist in overcoming these obstacles. Digitization of processes with poor data quality, on the other hand, exacerbates existing flaws
Because these building blocks are interconnected, a holistic design approach is required. They are used throughout the organisation in both core operational and support functions. The immediate application of mature technological building blocks to standardised processes will result in more reliable processes with fewer failures. When organisations shift their focus from waste elimination to value creation, the result is a significant increase in productivity. Furthermore, your company can automate and digitise manual data processing and standard decision-making
To be successful, businesses must ensure that lean principles are fully integrated into their digital transformation efforts. Companies should:
- Choose the right building blocks based on the potential for value creation.
- Use lean principles to drastically simplify the value stream.
- Avoid taking digital shortcuts.
- Begin developing a lean digital capability, involving top management and a cultural shift within the organisation.
- By combining digital and lean principles, companies will be able to achieve fundamental shifts in performance.
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