The Naval Sea Systems Command, the largest of the Navy's five systems commands, has introduced a program called Navsea Lean. The programme is based on a business improvement methodology termed Lean Six Sigma (LSS.) LSS is a fusion of two Toyota inspired business transformation models, Six Sigma and Lean Manufacturing. Through data collection, data analysis and solution finding both models seek to eliminate waste in terms of over-priced budgets, non-binary process steps, faulty product manufacture and slow process speed. The final result, when the system works, is stream lined processes that delivers better service.
Lean Six Sigma projects are administered by leaders termed black belts within the organisation. Undergoing intensive Lean Six Sigma management training, these black belts are responsible for directing teams of green belts. Black belts are rumoured to save hundreds of millions of dollars on the projects with which they are involved and a typical project lasts around six months. Since its instigation, LSS has played a part in streamlining the naval contracting process, decreasing decision times and accelerating and economizing on base check in check out procedures.
The decision was made in 2004 to introduce Lean Six Sigma initiatives into Navsea (Naval Sea Systems Command.) To date, its application has been broad, with 30 Navsea organisations forming part of the initiative. Following initial introduction, results have been more than impressive. Significantly, the initiative has been held directly responsible for saving two hundred million US dollars before the start of year two of its implementation.
It was Toyota that introduced the systems that spawned LSS. Curiously, it seems that, now, the navy is responsible for exporting LSS back to the nation where its concept was born. It seems somewhat ironic that the U.S. Fleet and Industrial Supply Center in Yokosuka, have a fully integrated LSS program for which the training is executed in both English and Japanese.
Following on from Lean Six Sigma successes in other US service departments, the Department of the Navy (DoN) came to the conclusion that they needed to integrate Lean Six Sigma into their training portfolio. As such, in 2006 they took steps to legitimise their in house training processes by partnering with the world's leading authority on quality, the American Society for Quality (ASQ) in order to develop a customised Lean Six Sigma Black Belt certification.
A three-year action plan mandating Senior leaders to place LSS at the top of their problem solving toolkit has been issued by the Secretary of the Navy who personally cross-examines his management team to determine how they are applying the methodology to solve their most pressing issues. There is an expectation, proven in many cases, that the benefits from LSS, will include more rapid transactions and decisions, superior quality control, cost savings and a better safety record. The following is quoted directly from the, ?Statement of the Honorable Donald C. Winter, Secretary of the Navy before the Senate armed services committee ? 28 February,2008. Under the title of, ?Management Process Improvement,? he writes,
?Complementary action to our acquisition improvement initiatives is our commitment to enhance process improvement across the Department of the Navy to increase efficiency and
effectiveness and responsible use of resources. The Enterprise Resource Planning (ERP) program, planned for implementation throughout the Department, began initial implementation at Naval Air Systems Command in October 2007. It is an integrated business management system that modernizes and standardizes business operations and provides management visibility across the enterprise. The Department continues to champion the use of Lean Six Sigma as the primary toolset as a means toward increasing readiness and utilizing resources efficiently. Over 4,420 leaders have completed Lean Six Sigma training, and there are over 2,000 projects underway. The Department's Financial Improvement Program leverages ERP and strengthens control of financial reporting. The Marine Corps expects to be the first military service to achieve audit readiness.
A major process improvement initiative to ensure that the Department applies fundamental business precepts to its management is the Secretary of the Navy's Monthly Review (SMR). The SMR is a senior leadership forum, involving CNO, CMC and Assistant Secretaries, designed to afford greater transparency across the Department and set into motion actions that garner maximum effectiveness and efficiency for the Department. The SMR reviews a portfolio of the bulk of Department activities and programs involving manpower, readiness, acquisition, infrastructure, etc. Using Lean Six Sigma tools and other business tools, this forum reviews the most urgent issues and discusses and implements appropriate solutions. Ultimately, this monthly interaction serves as a means to synchronize the Department's actions to comprehensively address complex problems, accomplish strategic objectives, and better position for challenges in the future.?
This document is irrefutable proof that the Lean Six Sigma stamp of approval has been indelibly written into Naval policy. We can only wait with interest for histories analysis of its legacy.
Lean Six Sigma Black
Lean Six Sigma provides a powerful combination of the Lean manufacturing approach and Six Sigma. The two concepts are not very different in their outlook and methods, or in their applications and goals. Lean Six Sigma works on the philosophy of increasing speed by focusing on waste reduction. The result of Lean applications is shown in the improvement of quality and on reduced processing times and costs. Combining 6 sigma with Lean manufacturing augments short-term results with the power of comprehensive changes. The result is Lean Six Sigma.
Five Reasons Your Organization Needs Lean Six Sigma
Corporations increasingly prefer implementing Lean Six Sigma over any other methodology. Here are the five top reasons that organizations prefer Lean Six Sigma.
1.Lean Six Sigma is applicable across industry sectors: Although Lean manufacturing was originally developed as a quality management tool with a manufacture-centric approach, of late, industries across the board have accepted and successfully implemented the seamless Lean Six Sigma tool. The notion that Lean Six Sigma can't applied to non-manufacturing sectors doesn't hold true any more.
2.Lean Six Sigma results in immediate functional improvements: Implementation of Lean Six Sigma results in faster-than-expected reduction of production time and costs. This is because of the application of its tools such as kaizen (method of constantly analyzing process flow and its application), kanban (helps pull up production) and poka yoke (mistake-proofing).
3.Helps create value for consumers: The combined application of Lean manufacturing and Six Sigma results in tangible and real value creation for consumers. Consumers of products and services can enjoy better experiences in terms of increased utility and reduced prices. More and more organizations are showing an inclination to implement Lean Six Sigma for obvious reasons ? it improves their bottom lines.
4.Practicality of execution: Lean Six Sigma facilitates transformation of organizations by creating a powerful linkage between strategic priorities and improvements in operations. Strategic priorities are the goals set by the top management team for higher returns on investment and improved customer experiences.
5.Focus on sustainable management capability: Lean Six Sigma's highly sustainable approach, being woven into every aspect of business, leads to the creation of sustainability from top down. Sustainability results from the quick realization of tangible benefits of implementing the program.
By implementing the Lean Six Sigma approach, organizations have realized time and again that it is possible to streamline their operations and to create value for both management and customers alike. The bottom lines of companies have soared with the successful implementation of Lean Six Sigma. As a result, many companies have created enormous value for their shareholders. Organizations are drawn to the Lean Six Sigma approach due to its fast implementation and results, in addition to creating additional value for the consumer at no extra cost.
Both Peter Peterka & 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.
Peter Peterka has sinced written about articles on various topics from Six Sigma, Leadership and Six Sigma. Peter Peterka is the President of SixSigma.us. For information on ,
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