Process Improvement -- Lean Six Sigma

Don't Automate a Poor Process

Do you know one of the frustrations experienced by better software development firms? They work very hard, automate a client's business process, and implement an exceptional system that does exactly what the client asked. It turns out not to be what the client needs. The client succeeds in replacing an old, inefficient process only to find it produces the same old problems with a speed and accuracy not previously seen.

This is why we say, "Don't automate a poor process. Improve the process first. Then, just imagine the benefits you will reap from software automation.

Tremendous Gains Really Are Available

Competitiveness is reaching a new level of sophistication. Your competitors are gearing up to put more pressure on you than you've ever imagined.

You probably have all the industry knowledge you need and chances are you're making improvements in your business right now. You may be surprised to learn that improvements of three times or more are possible. We know. We've done it many times and we can help you do it. Here are some examples:

  • Increased manufacturing plant capacity 16% in 1 week with no new headcount.
  • Improved customer responsiveness 300% and quality 12% with no resources added.
  • Reduced time to develop new products 58%, from 202 days to 128.
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    A Message from John Prentice

    If I could tell you one thing about modern strategies and tools for enhanced business performance it would be this: THEY WORK.

    In my 30 years of business experience, from factory floors to board rooms, I have never seen any concepts so simple work so well. Companies are winning 30% to 50% improvements every day. That's why I say, "Don't settle for less than great performance."

    Is your company getting these astounding results? Are your competitors? Are you sure? Who will get there first?

    I believe process improvements are designed and implemented by people, not in spite of them. Be proficient in process improvement. Do it well. Better yet, call for experienced help. The payback is huge.

                 John W. Prentice
                 President
                 Prentice Consulting, Inc
  • Nearly tripled productivity, measured by value added divided by total payroll costs, resulting in over $100 million in incremental sales with no additions in headcount.
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    Our considerable experience in business improvement has led to a key finding: self-administered programs seldom work well, and all too often provide only fleeting value. The successful companies you've been reading about have used the kind of experienced outside help we can provide.

    Demand Results, Not Just Effort

    It's not enough to have lecturers, trainers, and motivational speakers just explain the concepts of Six Sigma and Lean, now often called Lean Six Sigma, to you and your employees. It takes a full complement of skills, processes, tools, and experience to really get the job done right. Prentice Consulting helps clients achieve immediate results and build a foundation of continuous improvement. We use proven techniques that insure your gains are real, measurable, and sustainable.

    Here are the fundamental truths: (1) getting fast can actually improve quality, (2) improving quality can actually make you faster, and (3) reducing complexity improves speed and quality. However, this doesn't happen unless you apply both Lean and Six Sigma. Here's what Michael George, another leader in this field, says in his book Lean Six Sigma for Service:

    By systematically removing time traps and other barriers, dramatic reduction in turnaround time is achievable. This company reduced its make-to-market cycle time by 67%.

    "There are three key reasons why service and business functions need to apply Lean Six Sigma:

    1. Business processes are usually slow and expensive processes. Slow processes are prone to poor quality... which drives costs up... and drives down customer satisfaction and hence revenue. The result of slow processes: more than half the cost in business applications is non-value-added waste.

    2. Business processes are slow because there is far too much "work-in-process" (WIP), often the result of unnecesary complexity in the product/service offering. It doesn't matter whether the WIP is reports waiting on a desk, e-mails in an electronic in-box, or sales orders in a database. When there is too much WIP, work can spend more than 90% of its time waiting, which doesn't help your customers

    customers at all and, in fact, creates or inflicts substantial waste (non-value-added costs) in the process.

    3. In any slow process, 80% of the delay is caused by less than 20% of the activities. We only need find and improve the speed of 20% of the process steps to effect an 80% reduction in cycle time and achieve greater than 99% on-time delivery.

    In short, people working in business functions typically find that most of the steps in their processes add no value to the product or service in their customers' eyes."

    What Should We Do Next?

    "Identify and quantify the non-value-added waste, eliminate it using Lean Six Sigma, and the results follow as the day follows the night."

    Fortunately, there is a universal measure that represents speed, quality, and complexity problems - time. Prentice Consulting follows a rigorous process for identifying and removing these problems:

    1. First, we work with you and your managers to identify the most important value drivers for your business.

    2. Next, we prepare a special map that shows a clear picture of the work flow, decisions, and handoffs.

    3. Then, we identify waste and delays and pinpoint the biggest time traps.

    4. Most importantly, we work together with your company to eliminate the time traps and deliver results like the ones below.

    Thinking About Software Automation?

    Now that we have streamlined the process, removed the time traps and barriers, reduced cycle time and increased customer satisfaction, you may not need expensive new software at all, or right now. Just imagine the savings! But, if software is the next step, now is the time to call the software development experts. Just imagine taking your good process to great. Think of the competitive advantage your company can leverage into new sales and profits.

    Steve McNear, President & CEO of Quest Information Systems says, "Our customers who take the up-front time to consider their business as a set of processes and apply the improvement tools are much more likely to be rewarded many fold with the software solutions we build for them. Our solutions always help them, of course, but those who improve their processes often leap ahead of their competitors."

    It's All About Results


    Continuous Improvement Results
            Improvement  
    Industry Measure Before After Amount Percent Remarks
    Accounting Cycle Time 5 1.5 3.5 70% Monthly closing
    Advertising Cycle Time 23 18 5 22% Direct mail advertising
    Advertising Cycle Time 7 2 5 71% Free standing inserts
    Advertising Labor Hours 40 32 8 20% Free standing inserts
    Distribution Floor Space 3,250 1,950 1,300 40% Warehouse
    Distribution Headcount 12 6 6 50% Reduced labor
    Distribution Line Distance 590 90 500 85% Refurbishment
    Distribution Productivity 25 31.5 7 26% Value added/payroll
    Manufacturing Headcount 13 9 4 31% Welding
    Manufacturing WIP Inventory 75 15 60 80% Welding jobs
    Manufacturing Floor Space 900 600 300 33% Welding
    Printing Cycle Time 5 2 3 60% Print & personalized mailing
    Printing Headcount 5 2 3 60% Print & personalized mailing
    Printing Process Steps 40 15 25 63% Print & personalized mailing
    Printing Line Distance 1,750 335 1,415 81% Print & personalized mailing
    Sales Cycle Time 72 25 47 65% Product implementation
    Service Floor Space 1,500 1,000 500 33% Customer service & data entry
    Service Labor Hours 11 9 2 18% Customer service & data entry
    Service 1st Pass Yield 89% 94% 5% 6% Customer service & data entry
    Service Cycle Time 40 20 20 50% New product introduction
    Service Cycle Time 371 231 140 38% Data entry (seconds)
    Average Improvement .......................................... 48%  


    Contact John Prentice for an exploration meeting to find out more about Process Improvement - Lean Six Sigma. Your call could pay off handsomely.