{"id":1789,"date":"2019-11-06T13:02:43","date_gmt":"2019-11-06T13:02:43","guid":{"rendered":"https:\/\/www.laurenhiseyconsulting.com\/test\/?p=1789"},"modified":"2020-03-16T17:48:57","modified_gmt":"2020-03-16T17:48:57","slug":"the-value-lean-six-sigma-brings","status":"publish","type":"post","link":"https:\/\/www.laurenhiseyconsulting.com\/test\/the-value-lean-six-sigma-brings\/","title":{"rendered":"The Value Lean Six Sigma Brings"},"content":{"rendered":"<div class=\"boldgrid-section\">\n<div class=\"container\">\n<div class=\"row\">\n<div class=\"col-md-12 col-xs-12 col-sm-12\">\n<p class=\"\">&nbsp;<\/p>\n<h1 class=\"\" style=\"text-align: center;\">The Value Lean Six Sigma Brings<\/h1>\n<p class=\"\">After I wrote my article on Lean Six Sigma benefits for Small to Medium Businesses, I thought it would be beneficial to write about the hard facts with Lean Six Sigma. It is essential to understand the ROI and value &nbsp;Lean Six Sigma brings, regardless if you hire a consultant or implement a program within your own company.&nbsp;<\/p>\n<p class=\"\"><img decoding=\"async\" loading=\"lazy\" class=\"alignnone size-medium wp-image-1793\" src=\"https:\/\/www.laurenhiseyconsulting.com\/test\/wp-content\/uploads\/2019\/11\/LSS-Benefits-1-300x300.png\" alt=\"Lean Six Sigma Benefits and Values\" width=\"300\" height=\"300\" srcset=\"https:\/\/www.laurenhiseyconsulting.com\/test\/wp-content\/uploads\/2019\/11\/LSS-Benefits-1-300x300.png 300w, https:\/\/www.laurenhiseyconsulting.com\/test\/wp-content\/uploads\/2019\/11\/LSS-Benefits-1-150x150.png 150w, https:\/\/www.laurenhiseyconsulting.com\/test\/wp-content\/uploads\/2019\/11\/LSS-Benefits-1-768x768.png 768w, https:\/\/www.laurenhiseyconsulting.com\/test\/wp-content\/uploads\/2019\/11\/LSS-Benefits-1.png 800w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/p>\n<p class=\"\">&nbsp;<\/p>\n<p class=\"\">&nbsp;<\/p>\n<p class=\"\">Before diving into the numbers, we should recap some of the benefits of Lean Six Sigma.<\/p>\n<h4 class=\"\">Hard Benefits<\/h4>\n<p>The hard benefits are generally tangible things, for example:<\/p>\n<ul class=\"\">\n<li>Reducing processing cost<\/li>\n<li>Increasing revenue<\/li>\n<li>Improving cash flow<\/li>\n<li>Eliminating the need for capital expenditure<\/li>\n<li>Faster quote to cash<\/li>\n<li>Reduce the need to hire additional employees<\/li>\n<li>Reducing operating costs<\/li>\n<li>Reduce the need for extra inventory<\/li>\n<li>Reducing machine operating time<\/li>\n<li>Reducing overtime hours<\/li>\n<li>Reducing cycle time to deliver the service or creating the product<\/li>\n<\/ul>\n<h4>Soft Benefits<\/h4>\n<p class=\"\">LSS soft benefits do not have the same tangible effect as hard benefits.&nbsp; However, these soft benefits are beneficial for the business.&nbsp; Examples of soft benefits are:<\/p>\n<ul class=\"\">\n<li>Customer focus\n<ul>\n<li>The focal point becomes the customer instead of the company<\/li>\n<li>Happy customers usually lead to more revenue<\/li>\n<li>A good and bad review can make or break a business<\/li>\n<\/ul>\n<\/li>\n<li>Improved employee morale\n<ul>\n<li>Happy employees enjoy coming to work every day<\/li>\n<li>Happy employees treat customers and other employees with respect<\/li>\n<li>Unhappy employees can result in high turnover and loss of talent<\/li>\n<\/ul>\n<\/li>\n<li>Improved employee effectiveness\n<ul>\n<li>Employees perform better when they are happy<\/li>\n<li>Better performance means satisfied customers<\/li>\n<\/ul>\n<\/li>\n<li>Leading by fact and alignment\n<ul>\n<li>LSS provides a way for owners, leaders, and managers to manage the company based on facts<\/li>\n<li>LSS eliminates the need for guessing<\/li>\n<li>LSS provides critical measurements for a business to define success<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h4 class=\"\">What is the value of Lean Six Sigma?<\/h4>\n<p>So what does all of this mean in the terms ROI and the bottom line?&nbsp; Let\u2019s dive into the numbers I compiled from some research and my success.<\/p>\n<p>The numbers below I gathered through my research:<\/p>\n<ul class=\"\">\n<li>Allied Signal \u2013 Over the past 12 years, cost savings over $800 M<\/li>\n<li>US Army \u2013 Cost savings around $2B in 2019<\/li>\n<li>UCSD Medical Center &#8211; $ 4M in savings<\/li>\n<li>Ford Motor Company &#8211; $300M in savings<\/li>\n<li>Agilent Technologies &#8211; $ 2B in streamlining their Supply Chain<\/li>\n<\/ul>\n<p>Sources: <a href=\"https:\/\/educhapter.com\/2019\/01\/09\/financial-benefits-of-lean-six-sigma\/\">https:\/\/educhapter.com\/2019\/01\/09\/financial-benefits-of-lean-six-sigma\/<\/a> and <a href=\"https:\/\/goleansixsigma.com\/success\/\">https:\/\/goleansixsigma.com\/success\/<\/a> and <a href=\"https:\/\/www.achieveprocessexcellence.com\/support-files\/continuous-improvement-success-stories-by-industry.pdf\">https:\/\/www.achieveprocessexcellence.com\/support-files\/continuous-improvement-success-stories-by-industry.pdf<\/a><\/p>\n<p>Within my 12-year career in Lean Six Sigma, I have saved companies ~$14 M + in revenue and savings. Some individual examples of my successes are:<\/p>\n<ul class=\"\">\n<li>Reduce the time and improve the quality to post a job for external recruiting from 1 month to 4 days \u2013\n<ul>\n<li>~$800K in savings<\/li>\n<li>Improved employee morale<\/li>\n<\/ul>\n<\/li>\n<li>Improved quality of client reports and services\n<ul>\n<li>$ 2M in revenue<\/li>\n<li>Enhanced client relationships and employee morale<\/li>\n<\/ul>\n<\/li>\n<li>Improvement of two products cycle time and quality\n<ul>\n<li>$3.5 M in operating cost savings and revenue retention<\/li>\n<li>Improved employee morale and customer satisfaction<\/li>\n<\/ul>\n<\/li>\n<li>Improvement in delivery cycle time for an international product\n<ul>\n<li>Improved employee morale and customer satisfaction<\/li>\n<li>$5M in increased revenue and operating cost savings<\/li>\n<\/ul>\n<\/li>\n<li>Improved sales cycle time and quality\n<ul>\n<li>~$1.5 M in revenue<\/li>\n<li>Improved Sales employee morale<\/li>\n<li>Improved communication with potential and new clients<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h4><strong>What does this all mean?<\/strong><\/h4>\n<p class=\"\">Lean Six Sigma is beneficial to any business, no matter the size or industry.&nbsp; The numbers above are only scratching the surface.&nbsp; Just based on these numbers, it is easy to see the ROI on Lean Six Sigma and how it affects a business\u2019 bottom line.&nbsp;<\/p>\n<p>If we look past the hard numbers, we can also see how Lean Six Sigma does have soft benefits.&nbsp; Just the increase in customer satisfaction, customer loyalty, and employee satisfaction provides better brand awareness and improved market share.&nbsp; These soft savings contribute to the overall bottom line.<\/p>\n<p class=\"\">Everything adds up to help create a successful business.&nbsp; Any type of business, regardless of size or industry, can benefit from Lean Six Sigma to help them grow and become successful.<\/p>\n<p>Have you or your company utilized Lean Six Sigma?&nbsp; What are some of the benefits that you have seen from using Lean Six Sigma?<\/p>\n<p class=\"\">If you want o use Lean Six Sigma within your business, <a href=\"https:\/\/www.laurenhiseyconsulting.com\/test\/contact-us\/\">Contact Me<\/a>.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>&nbsp; The Value Lean Six Sigma Brings After I wrote my article on Lean Six Sigma benefits for Small to Medium Businesses, I thought it would be beneficial to write about the hard facts with Lean Six Sigma. It is essential to understand the ROI and value &nbsp;Lean Six Sigma brings, regardless if you hire [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[6],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v15.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<meta name=\"description\" content=\"The Value that Lean Six Sigma Brings. 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