So what's the difference, and how are each best applied?
Six Sigma is a quality improvement methodology developed by Motorola to systematically improve processes by eliminating defects. Read more on six sigma.
Lean Six Sigma is a business improvement methodology which combines tools from both Lean Manufacturing and Six Sigma. Lean manufacturing focuses on speed and traditional Six Sigma focuses on quality. Read more on lean six sigma.
Taking lean six sigma one more step, we can overlay it on Business Process Management.
Lean Six Sigma + BPM is the ultimate integrated methodology for achieving the best "what-why-how" balance. It helps considerably with decision making by focusing attention on the right projects and innovations at the right time, and for the right reason.
This is especially so in innovation, where success depends not only on finding the critical idea but in turning it into reality.
Like many business methodologies, what applies in one camp can be used in another, and for a completely different purpose. Rather than get hooked up into cutsey naming conventions, Coded-Vision believes more in having a clearly defined, structured approach to any project to get the best results for the client, with the minimum investment. No change process can be managed effectively without a solid framework. Rather than constrain the process, it allows for controlled flexibility, whilst maintaining a clear connection to the project goals.
And any framework is just a composition of tools, most appropriate to the job. A builder doesn't expect to build a house without tools, and wouldn't expect to cut concrete with a wood saw. Neither would an experienced management consultant undertake a change or improvement program without a toolkit of the best tools available. And the framework is what the project hangs the fabric of change on, and measures it's progress.
Lean Six Sigma and BPM
Many Six Sigma and Lean Six Sigma tools can help streamline operational processes, reducing time to market, and bridging the innovation gap from current state to a desired future state.
The key difference between the two is that Lean Six Sigma solves problems and innovation helps to introduce and develop an opportunity.
BPM helps to facilitate the ongoing success of both programs.
Remebering The Human Element
And like any sound process or innovation, there are the three streams; People-Process-Technology
It is easy enough to decide what you want/need to do, and easy enough to design how to do it, but encouraging people to perform to the said design is a whole different set of challenges. This is where change management skills come to the fore.
At the centre of any change management is communication. People perform based on emotionally meaningful outputs. You need to know how to reach that emotional trigger to engage their interest, and inspire their action.
BPM is very much a team effort. It may be lead from the top, but its success is driven from the bottom.
With the communication tools available today, there is no excuse for not engaging with all stakeholders at every step of the process. And that extends beyond the corporate boundaries to the customer.
BPM must address both the strategic needs of the organization, whilst maintaining intelligent growth in both its employees and its customers. Many innovations fail, despite incredible design brilliance, because the customer is not educated sufficiently in its value and usability, and the employees do not fully understand the marketing tactics and delivery mechanism.
As customers grow, so do companies, and the value of tools such as Lean Six Sigma and BPM continue to be appreciated.
Six Sigma And Lean
Possible Areas for Implementation:
-Research and Development
The Research and Development process is the most important process in pharmaceutical companies and forms a major part of costs. The Lean concept is desirable in this scenario to understand the critical processes to new drug development, and to research and streamline existing ones.
It is important to have these objectives to reduce drug failures, effect maximum utilization of resources, and increase productivity and optimum utilization of staff and other resources.
-Cycle Times
Increased cycle times are major factors affecting the timely manufacture, supply and launch new drugs. The earlier companies can take advantage of this market situation ultimately means the difference between success and failure of the product.
Value stream mapping and process modeling concepts of Lean Manufacturing and Six Sigma can help in reducing cycle times and operational costs, in addition to increasing the efficiency of processes as well as staff.
-Defects
Any defects with respect to drugs would be a big blow to any pharmaceutical company. Lean concepts such as DFSS can help, as they utilize tested scientific tools and statistical tools that help reduce the cost of human errors.
Companies can use advanced tools to conduct quality analysis, yield analysis, cost comparison of jobs, risk assessment and comparison of manufacturing processes at different sites.
Rewards of Six Sigma
The Lean transformation has to happen at the operations and management levels, as well as in the behaviors towards customer focus and consistent mission statement and values. Six Sigma teams should endeavor to change momentum in their organizations.
Six Sigma training cannot be ignored; a comprehensive strategy towards training needs at multiple points in the transformation to Lean means achieving stronger organizational skills throughout top management and other staff members.
In the transition to Lean Six Sigma, IT plays a very important role towards continual improvement. The complex pharmaceutical manufacturing structure requires flexible and interoperable IT systems. Systems should be in place that enable data mining and analysis quickly, accurately and efficiently. The data will then be more reliable.
With unduplicated data, the information recovered becomes the driving force in decision-making, as well as in lowering administrative costs. For example, if a batch of drugs released is defective, a reliable IT system can provide data towards the locations to which it has been dispatched, as well to find out where the defect may have originated. With more dependence on automated checks built into the system, quality results are achievable.
This enables rapid analysis and design changes for the improvement of operating efficiency and compliance. Last but not least is the utilization of real-time demand driven sales, which helps reduce inventory and its carrying costs before product expiration.
The Six Sigma and Lean approach to the pharmaceutical industry has possibilities for implementation. Though not the easiest, its implementation can definitely reduce costs, process errors and product defects.
Both Gail La Grouw & Tony Jacowski are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Gail La Grouw has sinced written about articles on various topics from Management, Marriage and Six Sigma. Gail La Grouw is consulting director of Coded-Vision Consulting, architects of optimal corporate and marketing performance. She is also a guest. Gail La Grouw's top article generates over 6600 views. Bookmark Gail La Grouw to your Favourites.
Tony Jacowski has sinced written about articles on various topics from University, Six Sigma and Information Technology. Tony Jacowski is a quality analyst for The MBA Journal. Aveta Solution's Six Sigma Online offers online six sigma training and certification classes for six sigma pro. Tony Jacowski's top article generates over 90500 views. Bookmark Tony Jacowski to your Favourites.
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