How Can a Lean Six Sigma Green Belt Improve Your Supply Chain and Bottom Line?

DMAIC-lean-six-sigma.jpgWhile six sigma is highly process-focused, supply chain, as a discipline, is focused on the entire value stream - from process to process. This can present challenges in applying six sigma in a supply chain environment. Combining six sigma with lean principles (such as visibility, velocity, and flow) can fill the gap by incorporating a systems-thinking perspective that focuses on the entire value stream vs. single processes.

A lean six sigma green belt program focused on supply chain teaches professionals how to apply both lean and six sigma to the supply chain in order to increase customer value and ultimately, generate measured business results. 

Here are four ways a lean six sigma green belt can improve your supply chain - and overall bottom line.

1. The Goal: Improve Supply Chain Performance and Reduce Total Cost
 
Lean six sigma focuses on eliminating waste and error proofing processes in order to increase first-time quality and decrease rework.
 
By using the pace of customer consumption as the framework for operations planning (a core lean supply chain principle), learners can implement flow and pull systems to help their organizations increase velocity and reduce lead times for higher supply chain performance. 
 
Improving theses processes within an organization results in supply chain cost reduction. Employees are taught to focus on getting things right the first time in order to eliminate both the waste of materials and time. This is key to reducing costs involved in supply chain processes. 
 

2. Increase Productivity and Efficiency

With a lean six sigma green belt, employees increase productivity by identifying, measuring and eliminating process defects and inefficiencies with the DMAIC process - a proven scientific framework  for maximizing bottom line impact. With root-cause and prioritization analysis tools, employees weigh projects and adjust timelines based on impact and risk - ensuring the best use of company time and resources.

3. Increase Return on Investment

By using empirical evidence, supply chain improvements from lean six sigma green belt programs are measured by financial results. Employees use statistical tools and techniques to accurately track improvements and measure costs.  This can lead to an increase in shareholders which, in turn, benefits organizations and their employees. By delivering value to their customers, these organizations give themselves a competitive edge. Some shareholders actually ask what methodologies a company is implementing before buying stock, and lean six sigma is highly regarded. Shareholders want to know that companies are doing all they can to reduce waste and make a profit.

Recent American Society for Quality (ASQ) research from 28 companies found that effective implementation of six sigma led to an average savings of 1.7 percent of revenues over the period of implementation and an average return of more than $2 in direct savings for every dollar invested on six sigma (“Costs and Savings of Six Sigma Programs: An Empirical Study”).

4. Satisfy Customers (And Increase Sales)

With lean six sigma, employees get to understand what is important to customers. The customer's needs and requirements are always at the top of the list. While a seemingly simple concept, many organizations struggle with keeping customer satisfaction as their "true north" for increased sales and customer retention. Increasing first-time quality rates, reducing lead times, and lowering costs results in a higher number of satisfied, loyal customers.


 

Lean Six Sigma Green Belt for Supply Chain - Blended Course (Online/Virtual)

September 25 - Dec 18, 2017 

Results-oriented, the new Lean Six Sigma Green Belt blended course teaches professionals how to apply lean six sigma to the supply chain in order to increase customer value and ultimately, generate measured business results.  Through self-paced online coursework, virtual coaching sessions, and an improvement project, students will learn the skills, knowledge, and tools consistent with industry expectations of a certified Lean Six Sigma Green Belt.

 Register Now

 

Posted by LeanCor Training and Education

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