Lean Six Sigma
Originally developed to improve manufacturing efficiency and quality, Lean Six Sigma is now being widely adopted by financial institutions, retailers, hospitals and other corners of the services industry.
 Lean Six Sigma is a blend of two concepts: Lean Manufacturing, which is aimed at reducing waste, and Six Sigma, which helps companies reduce errors. Together they can help companies reap the benefits of faster processes with lower cost and higher quality. From our research and experience with clients, we've learned that despite its growing popularity and impressive results at some companies, Lean Six Sigma often fails to deliver expected results. Our recent management survey of 183 companies found that 80% are not achieving their expected value from Lean Six Sigma efforts, and 74% are not gaining the expected competitive advantage because they have failed to achieve their savings targets.
WASALOS has developed an upfront analysis tool that enables companies to identify and focus on only the process changes that will quickly make the biggest differences ensuring faster results with smaller initial investment. The approach begins with understanding the company's value stream, and then moves rapidly to mapping out processes and costs. Next, we identify a company's full potential through such measures as bottleneck analysis and internal and external benchmarking. Finally, we target areas for improvement, unleashing the trained teams. WASALOS’ analytical approach has enabled cost savings totaling many millions of dollars through process improvements.
Our experience across industries and geographies allows us to quickly perform analysis that helps companies achieve sustainable improvements. Using analytic tools, to focus on areas with the most potential for generating results, our clients avoid the extra cost and time of training and deploying more teams than absolutely required.
We are pragmatic in our use of Lean Six Sigma. We use only the tools that make the most sense for each situation. Also, we partner with the right suite of third-party companies to deliver the right tools and solutions that best meet our clients' economic needs.
Example I
Lean Six Sigma Improves Plant Performance & Cut cost
Problem:
Drink-SA. is losing market share to strong competitors and suffering from slowing growth in primary channels. To remain competitive, the client must:
- Improve manufacturing facilities to reduce cost and increase capacity, and
- Invest in innovations needed for growth and competitiveness
The client asked WASALOS Consulting to address the following key questions:
- Can capacity be increased in existing plants? How much, and where?
- Can cost per ton be reduced on existing lines?
- Can enough cash be freed up from operations to invest in innovations?
Approach:
WASALOS utilized its Lean Six Sigma methodologies and its Voice of the Process along side our highly acclaimed five-step approach to improve Drink Co.'s plant performance
Recommendations:
WASALOS Consulting Identified 25 initiatives and prioritized them according to improvements to plant capacity and overall equipment effectiveness. Of these, WASALOS recommended six as the most critical initiatives.
Results:
With WASALOS support, Drink-SA implemented the recommended initiatives, generating 15% cost savings and increased flexibility. Knowledge transfer programs were also in place to improve additional plants in the system.
Example II
Lean Six Sigma solves a commercial bank’s growth problem
Problem:
As the residential property market slowed, local banks shifted their focus to commercial banking. However, credit issues were a major constraint to the growth of the business.
- Credit issues included credit processes, policies and capacities and culture
- Problems existed throughout the organization, from sales force to frontline credit approval teams to groups central credit team
WASALOS Consulting helped developed a growth strategy to increase the speed, accuracy and efficiency of credit processes and decision making.
Approach:
WASALOS Consulting applied the Lean Six Sigma approach to improve the performance and efficiency of credit processes.
Recommendation:
WASALOS Consulting recommended rule-based credit policies with faster approval process to enable growth, reduce processing time and increase accuracy
Results:
The bank implemented WASALOS’ recommendations, along with metrics to track improvements and change management processes to ensure success.
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