How do lean and six sigma methodologies contribute towards operational excellence?
Stated simply, the goal of any lean initiative should be to minimize waste while maximizing customer value. In an operationally excellent organization, lean practices are applied to all key processes, not just those of a operations nature. Additionally, value is defined from the perspective of both the external and internal customer in a measurable manner – it is not just what management thinks the customer wants. Lean tools are just that – a set of tools that can be used on a regular basis to help you pursue operational and process excellence. According to Womack and Jones, there are seven types of process waste – rework, overproduction, excess inventories, non-value added process steps, excess people movement, excess material transportation, waiting, and non-value added goods of services. Common examples of process waste incidents in organizations include accidents, rework, downtime, material waste, absenteeism, equipment damage, product damage, customer complaints, and lost customer
