When most organizations consider Six Sigma and process improvement, it is usually done in the context of the manufacturing sector. In reality, the methodology is just as effective when deployed in organizations within the service industry. The main difference is that the variables under review are more focused upon people (as you would expect). Aside from that, the goals are virtually identical: eliminate process-related waste and variance.

In this article, we'll explore Lean Six Sigma within the service industry. I'll explain the initiative's primary focus upon completing tasks right the first time. I'll also describe the challenge of developing transactional baselines, improving employees' performance, and eliminating (or, at least reducing) process inefficiencies.

Doing It Correctly The First Time

The number one contributor to waste in the service industry is not completing a given task correctly the first time. For example, consider a restaurant which serves water and a basket of bread to each party. Let's suppose a customer is seated and a glass of water is provided by the server. If that server fails to provide the complimentary basket of bread with the glass of water, he must make an extra trip. That requires additional time.

The purpose of Lean Six Sigma is to identify and eliminate such inefficiencies. In doing so, the methodology can improve customer satisfaction, reduce waste (and thereby, costs), and improve the organization's competitive edge in its market.

Developing Performance Baselines

In order to identify process-related waste, the Lean Six Sigma team must first review the organization's goals and current performance levels. Each transaction which is performed by an employee represents an opportunity to improve efficiency. However, the project team must take care to establish the proper transactional baselines.

To illustrate, let's return to our restaurant example. Suppose the organization identifies the time between when a customer orders his food and when that food is delivered as a performance baseline. To this end, the less time it takes, the better. The danger here is that a reduction in food delivery time may be accompanied by poor food preparation. As a result, the customer is left dissatisfied, regardless of how quickly the food was delivered. In effect, the baseline was identified poorly.

This is why it is vital for the Lean Six Sigma team to carefully review employee performance outputs in light of an organization's goals.

How To Improve Employee Performance

Because Lean Six Sigma relies so heavily upon employees' actions, the question is how to improve the efficiency of those actions. Predictably, the first line of defense is training. Concrete guidelines should be designed and provided to each employee at the time he or she is hired. As much as possible, each transaction should be explained clearly. (In our restaurant, that might include taking a party's order at the same time water is provided.) The Lean Six Sigma team should work with the organization to develop training guidelines.

Reducing Process Inefficiencies

As in any Six Sigma initiative, eliminating process-related waste is paramount. The same types of waste that plague manufacturers also plague the service industry (albeit, in a different manner). For example, employee transactions can be rife with defects.

Returning yet again to our restaurant, consider a server who takes a party's order incorrectly. That defect carries costs. There is an increase in food delivery time. Food must be discarded because it is prepared incorrectly. Other customers are forced to wait longer because the server is busy compensating for the mistake.

The Lean Six Sigma project team must review each process in which waste is having a negative impact on the service organization's goals. While the methodology was originally designed for use in the manufacturing sector, it has clear and substantial value when deployed within the service industry.