The Internet as a tool has helped in process improvement efforts, the Lean way. Lean techniques rely on process cycle efficiency (PCE) as a measure of process execution speed. PCE is calculated as amount of value added time from total elapsed time.
A Lean process will have a PCE of 25 or more. Improving PCE means a reduction in non-value added activities and their removal from the process.
PCE=Value Added Time/Total Elapsed Time
Technologies like the Internet help bring in Lean process improvements. Some key technologies are listed below.
The Internet: Web-based applications are being developed by organizations to make Leaner processes. These portals are commonly used in order processes, from placing orders to logistics.
Many organizations, such as banks, even have portals for their end users. For example, a customer can apply for a credit card online and know their application status in just a few seconds.
Wireless Connectivity: Wireless technology has enabled many people such as Insurance industry claim adjusters to enter information directly into a software program from any remote location, thanks to wi-fi connectivity.
This decreases the amount of time wasted in the movement of documentation to processing destinations.
Automated workflow systems: In production process, there is a relatively long cycle time as the components like paper work tend to be stuck in queues at workstations. Automated workflow systems have enabled the easy movement of critical items.
Certain items that need immediate attention have alerts programmed in to cut down on long waiting periods. This easily enables Lean process improvement.
Scanning and Digitization: Scanning and Digitization of documents that come in for processing is one technological development that has assisted in faster processing of critical information.
These scanned documents can traverse geographical boundaries, enabling employees at varied locations to process and turn them around in the minimum possible time. It also helps reduce the wasteful movement of paper around the company.
Service Oriented Architectures (SOA): Some up-to-date shipping companies are using technology in coordination with their customers. They are allowing their back- end software to be accessed by the software of other organizations, who have tied in with them for their shipping activities. The SOA technology allows software systems from varied organizations to exchange information automatically without any human intervention - saving both time and money.
SOA enables reducing the time consuming exchange of paper among organizations and eliminates redundant data.
Online CRM systems and FAQ systems: Many organizations have online Customer Relationship Management (CRM) systems in place to allow end users to get quick trouble shooting of their problems. There are also FAQ sections and online complaint centers, which ensure that the customers get an immediate response and a solution to the problem that they are facing.
These systems are available 24 hours for people with Internet connectivity - and they also respond quicker than telephonic complaints and queries.
These key technologies have enabled Lean process improvement efforts to be successful to a large extent. It has helped reduce paperwork and unnecessary movements of components and thus eliminated waste from the process. PCE is seen to have improved manifold for organizations.
Lean Process Improvement Jobs
Lean production methods have been evolving since the beginning of the industrial revolution. Examples include Henry Ford's creation of the first production line for the automobile industry, and in World War II where a B24 was rolling of the assembly line every 56 minutes. Lean methods have been further improved by Toyota, and other forward thinking companies with undeniable results. Toyota has been rated #1 in auto manufacturing quality for the past five years.
Lean methods include:
5S Programs
Theory of Constraints
The 7 Wastes
Toyota Production Systems, (TPS)
Demand Flow
Just in Time
Value Stream Mapping
Transactional Mapping
TQC
Re-engineering
In all cases the expected outcome remains the same:
Focus on Customer, their expectations and what they perceive as value
A passion for Continuous Improvement in the elimination of waste
Identification of where an organization adds value and the identification of non-value activities to enable the successful implementation of the future state vision
Creating the ability for products or activities, (transactions) to flow through a process map in shortest amount of time possible
Establishing disciplines to link Customer Demand directly to processes, transactions, resource, or material.
There is a strong case that can be made for a partnership between Six Sigma, which fixes processes, and lean, which fixes the connections between processes. By combining Six Sigma and Lean you will gain a broad perspective on your people, processes, and results that will yield powerful data driven solutions and grow your business.
Many companies will latch onto one or two lean methods and realize short term improvements. This is where a comprehensive Six Sigma program then steps in to assess process variation and manage the continuous improvement of expected outcomes for the long term.
Both Tony Jacowski & Dana Desilva 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.
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 and certification classes for six sigma pro. Tony Jacowski's top article generates over 90500 views. to your Favourites.
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