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Lean Six Sigma is applicable outside volume manufacturing

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Volume manufacturing (automobiles) is where Lean thinking and tools were developed. We use a volume manufacturing exercise (VSM)  to learn the techniques – we can visualise ‘things’ easier. But Lean is not a ‘manufacturing’ concept, it is a volume concept. Wherever you have volume you have processes which are dynamic. Lean is being applied outside manufacturing; the potential is huge since for an advanced industrial economy:- –80% non-manufacturing –and of the 20% that is manufacturing, only 20% of that has prices driven by direct manufacturing labour.

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Lean Six Sigma Value Stream Mapping

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During the Lean Six Sigma projects the Black Belts we learn them mapping a value stream, using symbols we understand, we have identified ways to reduce Lead time. This means that the time spent on value add activities as a % of total time spent is increased, But we haven’t changed any of the value add activities. We haven’t bought new high tech expensive equipment or tried to get people to work harder, we have simply improved the system. We haven’t calculated benefits but you get the  feeling that the ‘future state’ system will perform better for OTOQD and cost. We used a volume manufacturing example because it’s easier to visualise value streams with physical things; now let’s look at non-manufacturing.

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What is Lean IT?

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Lean IT is the extension of lean production and lean office principles to the development and management of info tech (IT) products and services. Its central concern, applied in the context of IT, is the elimination of waste, where waste is work that adds no value to a product or service. Although lean principles are generally well established and have broad applicability, their extension from manufacturing to IT is only just emerging.Indeed, Lean IT poses significant challenges for practitioners while raising the promise of no less significant benefits. And whereas Lean IT initiatives can be limited in scope and deliver results quickly, implementing Lean IT is a continuing and long-term process that may take years before lean principles become intrinsic to an company’s culture.  

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