I have been studying how a business can “stop leaking money” under the tutelage of Jay Arthur and other teachers/consultants. I have studied TQM, Six Sigma and Lean Six Sigma. I suppose that by now I am pretty much a “well qualified” LSS Yellow Belt. Jay has convinced me that instead of studying to become a LSS Green Belt I should study to become a “MoneyBelt“.
Jay proposes that if 20% of all your business processes produce 80% your profits (known as the Pareto Principle) and that 20% of your business processes produce 80% of your waste then why can’t 20% of the full Lean Six Sigma methodology produce 80% of the gains in productivity and cost savings?
What does this mean? It means instead of a huge upfront investment in training Green and Black belts give the team(s) Just In Time (a Lean concept) training for the specific problem they are tackling. Give them a very short time frame and have them work “full-time” during that project, only on that project. When they have either solved the problem they set out to solve or decided it was insolvable as presented dis-band that particular project team.
In large company’s Lean Six Sigma has a considerable history of messy partial successes and many, many failures. Instead of starting at the top and jamming it down everyone’s throat why not start at the bottom with small, useful pilot projects to build bottom up enthusiasm? This is what Jay is preaching. You can Google the success rate of Lean Six Sigma and get eye-opening articles.
I have even started a Linkedin.com group on the topic of a “MoneyBelt”. You can join the conversation there or here.