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"Trends in Assessing When Different Productivity Approaches Work Best"
While Six Sigma, Lean, Lean Sigma and other productivity improvement approaches continue to yield benefits in manufacturing and supply chain optimization, best-in-class companies also apply such process improvements to other transactional business functions such as sales, marketing, and R&D -- common sources of process waste. Process improvements in these areas aim to drive bottom line growth in seven different business areas: quality improvement, cost reduction, cycle time reduction, cash flow improvement, human effectiveness improvement, new products & innovations, and sales & market growth. This benchmarking exchange reveals current trends in productivity initiatives in 2006 as well as changes since 2003 when data was also collected in a similar survey. The 47-slide presentation examines not only how, where and when leading companies implement Six Sigma, Lean, Lean Sigma, process excellence and other productivity approaches but how effective different productivity approaches are in achieving improvements in the seven business areas. Readers can also view benchmark partner estimates of the value contribution of their productivity initiatives and individual contributors, as well as methods that companies use to evaluate, measure and communicate best practices within their companies. Those in charge of making process improvements should read this study to identify gaps in their own productivity initiatives, identify which tools to use for which purposes and determine effective implementation techniques.
- Productivity Approach Effectiveness
- Productivity Approach Value Contribution
- Validating, Aligning, Incenting, and Sharing Best Practices
- Lessons Learned in Leadership, Implementation, Change Management and Process Improvement
Many of the metrics were collected in a similar 2003 study; where possible, comparisons are made between the 2006 and 2003 statistics.
- Use of Multiple Approaches
- Scope of Productivity Approach Implementation
- Effectiveness Ratings for the following productivity approaches: Six Sigma, Lean, Lean Sigma, Cycle Time Reduction, Process Excellence
- Percent (%) of Benchmark Partners Implementing Projects in Functional Areas
- Value Contribution of Productivity Projects: in Aggregate, as Percent of Operating Unit Revenues, and in Improvement-to-Sales ratio
- Percentage of Employees trained and engaged in Six Sigma, Lean or other Performance Improvement Process
- Measuring Individual Black Belt/Senior Project Manager Contributions
- Projects per year per Black Belt/Expert Project Manager
- Average Project Cycle Time
SAMPLE HIGH-LEVEL FINDING
Research by Best Practices, LLC reveals that leading companies concentrate their improvement goals on clearly defined projects focused on select improvement areas utilizing an informed and manageable number of improvement approaches.
Conducted on behalf of the Global Benchmarking Council for its quality and performance membership leaders, "Assessing When Different Productivity Approaches Work Best" updates and expands a similar study from 2003. Best Practices analysts conducted this cross-industry benchmarking study via a survey with 60 cross-industry respondents from 54 companies.